This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

TrustCo Announces Third Quarter Pretax Earnings Up 10%

For the first nine months of 2012 net income was $27.7 million and resulted in diluted earnings per share of $0.296, as compared to the first nine months of 2011 net income of $24.4 million and diluted earnings per share of $0.296. Net income was up 13.8% from the first nine months of 2011 to the first nine months of 2012. Return on average equity and return on average assets were 10.64% and 0.85%, respectively, for the first nine months of 2012 and 11.38% and 0.80% for the comparable period in 2011.

Reported credit results for the quarter were affected by the implementation in the third quarter of new OCC guidance which affected consumer loans where the borrower's obligation to TrustCo has been discharged in bankruptcy and the borrower has not reaffirmed the debt.  Implementation of this new OCC guidance affected nonperforming loans and net charge offs as follows:

  • Net $4.0 million of performing consumer loans were reclassified to nonaccrual status, and
  • $804 thousand increase in net charge offs, which was covered by the reserve.

Nonperforming loans were $49.9 million as of September 30, 2012, compared to $51.5 million at June 30, 2012 and $47.0 million at September 30, 2011. Nonperforming assets were $58.6 million at September 30, 2012, compared to $55.3 million at June 30, 2012 and $53.1 million at September 30, 2011. At September 30, 2012, nonperforming loans were equal to 1.92% of total loans, compared to 2.01% at June 30, 2012 and 1.89% at September 30, 2011. Nonperforming assets to total assets were 1.36% at September 30, 2012, compared to 1.25% at June 30, 2012 and 1.27% at September 30, 2011. The allowance for loan losses as a percentage of gross loans and as a multiple of net charge-offs remains strong. Excluding the affect of implementing the new OCC guidance TrustCo would have had nonperforming loans of $45.9 million or 1.76% of total loans, and nonperforming assets of $54.6 million or 1.26% of total assets as of September 30, 2012. The allowance to total loans was 1.82% at September 30, 2012 and 1.88% at June 30, 2012, and covered annualized third quarter net charge-offs by 3.3 times, compared to an annualized 4.1 times for the third quarter of 2011. The coverage ratio, or allowance for loan losses to nonperforming loans was 94.9% at September 30, 2012, compared to 93.3% at June 30, 2012 and 101.7% at September 30, 2011. Excluding the affect of implementing the new OCC guidance TrustCo's allowance for loan losses at September 30, 2012 as a percentage of gross loans would have been 1.85%,  which would have covered annualized third quarter net charge offs by 4.4 times.  Likewise the coverage ratio of the allowance for loan losses to nonperforming loans would have been 104.9% at September 30 , 2012.

3 of 5

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,031.14 +43.63 0.26%
S&P 500 1,984.13 -1.41 -0.07%
NASDAQ 4,518.9020 -48.6960 -1.07%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs