TrustCo Announces First Quarter Earnings

GLENVILLE, N.Y., April 22, 2013 (GLOBE NEWSWIRE) -- TrustCo Bank Corp NY (TrustCo) (Nasdaq:TRST) today announced that net income rose to $9.2 million in the quarter ended March 31, 2013, up 2.9% from $8.9 million for the quarter ended March 31, 2012. First quarter net income is up 24.2% over the same period two years ago and 44.4% over the same period four years ago. Return on average assets and return on average equity were 0.86% and 10.35%, respectively for the first quarter of 2013, compared to 0.84% and 10.45% for the first quarter of 2012.

TrustCo saw continued balance sheet growth in the first quarter of 2013 in both loans and deposits. Robert J. McCormick, President and Chief Executive Officer noted, "We began 2013 with solid first quarter results. In addition to bottom line growth, we continue to add profitable customer relationships on both the deposit and loan side. This contributed to the bottom line growth in the first quarter and will continue to do so for the balance of the year and beyond. As we have noted, our highly liquid balance sheet allows us to fund loan growth without having to overpay for deposits. In turn, this enabled us to significantly restructure our deposit mix during 2012, and should be of additional benefit when interest rates eventually begin to rise. We look forward to the balance of 2013 with optimism, though we note that our industry continues to face challenges as the economy remains fragile and interest rates remain at unprecedented levels. We will continue to take advantage of opportunities that are presented."

Mr. McCormick also noted: "We continue to see some signs of economic improvement in the markets in which we operate, particularly in Florida, although high levels of unemployment and other persistent issues continue to constrain any significant economic growth. We believe our long-term focus on traditional lending criteria and conservative balance sheet management has enabled us to maintain a strong balance sheet and continued profitability. As a result, we have been able to focus on conducting business, which has significantly enhanced our reputation and put us in a position to take advantage of changes in market and competitive conditions."

TrustCo continued to report solid growth in loans and deposits. On a year-over-year basis, average loans were up $167.7 million in the first quarter of 2013, compared to the same period in 2012, while average deposits increased $31.3 million over the same period. Mr. McCormick noted that, "The year-over-year growth of our loans and deposits reflects the long term strategic focus of the Bank and came despite the decision to enhance our mix of deposits during 2012, which reduced growth but improved our net interest margin. 

"While other banks have backed away from branches, our branch franchise continues to be the key to our long term plans. We recently celebrated the ten year anniversary of our branch expansion program, and have made significant progress expanding our loans and deposits through our branches. We expect that to continue as the new branches continue to grow. We also note that we have always designed our branches to be smaller and more cost effective than those built by many other banks, and have utilized open floor plans that help maximize the value of our branches. We remain mindful that fully achieving our goals for our newer branches will take time and continued hard work. We believe our success in growing customer relationships provides the basic building blocks that will help drive profit growth over the coming years."

Asset quality, reserve coverage of nonperforming loans (NPLs) and reserve coverage of net charge-offs all improved from December 31, 2012 to March 31, 2013. NPLs declined to $49.9 million at March 31, 2013, compared to $52.7 million at December 31, 2012 and nonperforming assets (NPAs) declined to $59.7 million from $61.4 million over the same period.  NPLs were equal to 1.84% of total loans at quarter-end, compared to 1.96% at year-end. For the first quarter of 2013 the allowance covered annualized first quarter net charge-offs by 5.3 times, compared to an annualized 3.7 times for the first quarter of 2012. The coverage ratio, or allowance for loan losses to NPLs, was 95.6% at March 31, 2013, compared to 91.0% at December 31, 2012. Overall, every asset quality indicator improved during the first quarter of 2013.

The net interest margin for the first quarter of 2013 was 3.19%, compared to 3.21% in the fourth quarter of 2012 and 3.23% in the first quarter of 2012. 

At March 31, 2013 the tangible equity ratio was 8.17% compared to 7.87% at March 31, 2012 and 8.24% at December 31, 2012. Tangible book value per share ended the first quarter at $3.83 compared to $3.68 in the year-ago period.

TrustCo Bank Corp NY is a $4.4 billion savings and loan holding company and through its subsidiary, Trustco Bank, operated 138 offices in New York, New Jersey, Vermont, Massachusetts, and Florida at March 31, 2013.

In addition, the Bank's Financial Services Department offers a full range of investment services, retirement planning and trust and estate administration services. The common shares of TrustCo are traded on the NASDAQ Global Select Market under the symbol TRST.

A conference call to discuss first quarter 2013 results will be held at 9:00 a.m. Eastern Time on April 23, 2013. Those wishing to participate in the call may dial toll-free 1-888-317-6016. International callers must dial + 1-412-317-6016.  A replay of the call will be available until April 24, 2013 by dialing 1-877-344-7529 ( 1-412-317-0088 for international callers), Conference Number 10027472. The call will also be audio webcast at: http://services.choruscall.com/links/trst130423.html , and will be available until April 23, 2014. 

Safe Harbor Statement

All statements in this news release that are not historical are forward-looking statements within the meaning of the Securities Exchange Act of 1934, as amended. The "forward-looking statements" may include statements regarding future events or performance and statements regarding TrustCo's ability to offer and sell securities under its shelf registration statement. Such forward-looking statements are subject to factors that could cause actual results to differ materially for TrustCo from those discussed. TrustCo wishes to caution readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. The following important factors, among others, in some cases have affected and in the future could affect TrustCo's actual results and could cause TrustCo's actual financial performance to differ materially from that expressed in any forward-looking statement: credit risk, the effects of and changes in, trade, monetary and fiscal policies and laws, including interest rate policies of the Board of Governors of the Federal Reserve System, inflation, interest rates, market and monetary fluctuations, competition, the effect of changes in financial services laws and regulations (including laws concerning taxation, banking and securities), real estate and collateral values, changes in accounting policies and practices, as may be adopted by the bank regulatory agencies, the Financial Accounting Standards Board ("FASB") or the Public Company Accounting Oversight Board; changes in local market areas and general business and economic trends and the matters described under the heading "Risk Factors" in our annual report on Form 10-K for the year ended December 31, 2012, as amended, and in our subsequent securities filings.
TRUSTCO BANK CORP NY
GLENVILLE, NY
       
FINANCIAL HIGHLIGHTS
       
(dollars in thousands, except per share data)
(Unaudited)
   Three Months Ended
  03/31/13 12/31/12 03/31/12
Summary of operations      
Net interest income (TE)  $ 33,707  33,718  33,637
Provision for loan losses  2,000  3,000  3,100
Net securities transactions  2  763  677
Noninterest income  4,590  5,398  4,333
Noninterest expense  21,557  21,150  21,136
Net income  9,168  9,806  8,909
       
Per common share      
Net income per share:      
- Basic  $ 0.097  0.104  0.095
- Diluted  $ 0.097  0.104  0.095
Cash dividends  0.066  0.066  0.066
Tangible Book value at period end  3.83  3.81  3.68
Market price at period end  5.58  5.28  5.71
       
At period end      
Full time equivalent employees 761 759 734
Full service banking offices 138 138 137
       
Performance ratios      
Return on average assets 0.86% 0.91 0.84
Return on average equity 10.35 10.88 10.45
Efficiency (1) 54.33 53.11 53.12
Net interest spread (TE) 3.13 3.15 3.14
Net interest margin (TE) 3.19 3.21 3.23
Dividend payout ratio 67.33 63.00 68.91
       
Capital ratio at period end      
Consolidated tangible equity to tangible assets (2) 8.17 8.24 7.87
       
Asset quality analysis at period end      
Nonperforming loans to total loans 1.84 1.96 2.03
Nonperforming assets to total assets 1.35 1.41 1.25
Allowance for loan losses to total loans 1.76 1.79 1.92
Coverage ratio (3) 1.0x 0.9 0.9
       
       
(1) Calculated as noninterest expense (excluding ORE income/expense) divided by taxable equivalent net interest income plus noninterest income (excluding net securities transactions).
(2) The tangible equity ratio excludes $553,000 of intangibles from both equity and assets.
(3) Calculated as allowance for loan losses divided by total nonperforming loans.
       
       
TE = Taxable equivalent.      
 
 
CONSOLIDATED STATEMENTS OF INCOME
           
(dollars in thousands, except per share data)
(Unaudited)          
  Three Months Ended
  3/31/2013 12/31/2012 9/30/2012 6/30/2012 3/31/2012
Interest and dividend income:          
Interest and fees on loans  $ 31,481  31,776  32,103  32,277  32,425
Interest and dividends on securities available for sale:          
U. S. government sponsored enterprises  816  1,191  1,996  2,606  2,304
State and political subdivisions  191  295  340  368  410
Mortgage-backed securities and collateralized mortgage obligations-residential  2,769  2,237  2,003  1,364  1,093
Corporate bonds  218  232  529  648  822
Small Business Administration-guaranteed participation securities  496  276  43  --  --
Mortgage-backed securities and collateralized mortgage obligations-commercial  29  --  --  --  --
Other securities  5  5  4  5  5
Total interest and dividends on securities available for sale  4,524  4,236  4,915  4,991  4,634
           
Interest on held to maturity securities:          
U. S. government sponsored enterprises  --  --  --  --  25
Mortgage-backed securities and collateralized mortgage obligations-residential  789  823  976  1,198  1,290
Corporate bonds  312  385  385  387  509
Total interest on held to maturity securities  1,101  1,208  1,361  1,585  1,824
           
Federal Reserve Bank and Federal Home Loan Bank stock  119  127  120  149  90
           
Interest on federal funds sold and other short-term investments  245  265  258  299  320
Total interest income  37,470  37,612  38,757  39,301  39,293
           
Interest expense:          
Interest on deposits:          
Interest-bearing checking  80  80  79  78  78
Savings  916  921  870  979  1,102
Money market deposit accounts  685  703  673  770  923
Time deposits  1,820  1,967  2,629  3,230  3,418
Interest on short-term borrowings  364  361  348  378  388
Total interest expense  3,865  4,032  4,599  5,435  5,909
           
Net interest income  33,605  33,580  34,158  33,866  33,384
           
Provision for loan losses  2,000  3,000  2,900  3,000  3,100
Net interest income after provision for loan losses  31,605  30,580  31,258  30,866  30,284
           
Noninterest income:          
Trustco Financial Services income  1,421  1,815  1,145  1,407  1,394
Fees for services to customers  2,887  3,386  3,234  2,939  2,732
Net gain on securities transactions  2  763  666  55  677
Other  282  197  172  176  207
Total noninterest income  4,592  6,161  5,217  4,577  5,010
           
Noninterest expenses:          
Salaries and employee benefits  8,178  8,427  7,587  7,519  7,743
Net occupancy expense  4,053  3,889  3,756  3,817  3,795
Equipment expense  1,718  1,637  1,316  1,600  1,520
Professional services  1,420  1,458  1,657  1,489  1,436
Outsourced services  1,350  1,175  1,350  1,347  1,250
Advertising expense  730  1,037  935  1,060  809
FDIC and other insurance  1,010  1,007  983  953  880
Other real estate expense, net  749  375  1,210  665  966
Other  2,349  2,145  1,849  2,599  2,737
Total noninterest expenses  21,557  21,150  20,643  21,049  21,136
           
Income before taxes  14,640  15,591  15,832  14,394  14,158
Income taxes  5,472  5,785  6,079  5,328  5,249
           
Net income  $ 9,168  9,806  9,753  9,066  8,909
Net income per Common Share:          
- Basic  $ 0.097 0.104 0.104 0.097 0.095
           
- Diluted 0.097 0.104 0.104 0.097 0.095
           
Average basic shares (thousands)  94,068  93,824  93,692  93,561  93,546
Average diluted shares (thousands)  94,073  93,828  93,700  93,562  93,546
           
Note: Taxable equivalent net interest income  $ 33,707  33,718  34,321  33,993  33,637
 
 
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
           
(dollars in thousands)
(Unaudited)          
  3/31/2013 12/31/2012 9/30/2012 6/30/2012 3/31/2012
 ASSETS:          
           
Cash and due from banks  $ 39,512 55,789 40,354 36,589 39,426
Federal funds sold and other short term investments 405,262 488,227 402,290 486,049 486,055
Total cash and cash equivalents 444,774 544,016 442,644 522,638 525,481
           
Securities available for sale:          
U. S. government sponsored enterprises 263,165 263,108 427,798 643,189 744,725
States and political subdivisions 15,265 26,457 33,857 36,978 38,367
Mortgage-backed securities and collateralized mortgage obligations-residential 612,555 518,776 515,879 354,285 219,301
Corporate bonds 59,239 26,529 49,296 73,311 81,654
Small Business Administration-guaranteed participation securities 115,464  76,562  25,338  --   -- 
Mortgage-backed securities and collateralized mortgage obligations-commercial 11,136  --   --   --   -- 
Other securities 660 660 660 660 660
Total securities available for sale 1,077,484 912,092 1,052,828 1,108,423 1,084,707
           
Held to maturity securities:          
U. S. government sponsored enterprises  --   --   --   --   --
Mortgage-backed securities and collateralized mortgage obligations-residential 98,038 108,471 120,877 133,562 143,629
Corporate bonds 19,935 34,955 35,074 35,193 35,312
Total held to maturity securities 117,973 143,426 155,951 168,755 178,941
           
Federal Reserve Bank and Federal Home Loan Bank stock 9,632 9,632 9,632 9,632 9,004
           
Loans:          
Commercial 212,637 219,577 217,431 235,347 235,513
Residential mortgage loans 2,154,188 2,126,668 2,056,972 2,003,046 1,970,278
Home equity line of credit 332,111 333,909 327,083 317,157 314,668
Installment loans 4,831 4,579 4,455 4,071 3,855
Loans, net of deferred fees and costs 2,703,767 2,684,733 2,605,941 2,559,621 2,524,314
Less:          
Allowance for loan losses 47,658 47,927 47,364 48,018 48,535
Net loans 2,656,109 2,636,806 2,558,577 2,511,603 2,475,779
           
Bank premises and equipment, net 35,787 36,239 37,251 37,868 37,099
Other assets 69,998 64,402 61,290 62,480 63,432
           
Total assets  $ 4,411,757 4,346,613 4,318,173 4,421,399 4,374,443
           
 LIABILITIES:          
Deposits:          
Demand  $ 298,243 300,544 292,350 283,873 281,628
Interest-bearing checking 579,077 560,064 536,892 528,101 507,510
Savings accounts 1,213,226 1,198,517 1,167,927 1,122,208 1,068,058
Money market deposit accounts 656,577 667,589 668,064 644,627 631,761
Certificates of deposit (in denominations of $100,000 or more) 384,559 352,734 359,246 452,043 467,447
Other time accounts 725,998 724,745 751,974 867,798 894,946
Total deposits 3,857,680 3,804,193 3,776,453 3,898,650 3,851,350
           
Short-term borrowings 171,019 159,846 161,751 150,718 159,002
Accrued expenses and other liabilities 22,169 23,776 22,352 22,124 19,445
           
Total liabilities 4,050,868 3,987,815 3,960,556 4,071,492 4,029,797
           
 SHAREHOLDERS' EQUITY:          
Capital stock 98,912 98,912 98,912 98,912 98,912
Surplus 174,386 174,899 175,284 175,773 176,199
Undivided profits 135,373 132,378 128,750 125,153 122,235
Accumulated other comprehensive income (loss), net of tax (169) 1,558 4,879 1,585 53
Treasury stock at cost (47,613) (48,949) (50,208) (51,516) (52,753)
           
Total shareholders' equity 360,889 358,798 357,617 349,907 344,646
           
Total liabilities and shareholders' equity  $ 4,411,757 4,346,613 4,318,173 4,421,399 4,374,443
           
Outstanding shares (thousands)  94,071  93,935  93,807  93,674  93,549
 
 
NONPERFORMING ASSETS
           
(dollars in thousands)          
(Unaudited)          
           
Nonperforming Assets
  03/31/13 12/31/12 09/30/12 06/30/12 03/31/12
New York and other states*          
Loans in nonaccrual status:          
Commercial  $ 5,978  6,635  5,880  5,656  5,667
Real estate mortgage - 1 to 4 family  34,027  35,286  32,593  29,167  29,894
Installment  35  6  71  1  9
Total non-accrual loans  40,040  41,927  38,544  34,824  35,570
Other nonperforming real estate mortgages - 1 to 4 family  225  231  238  243  306
Total nonperforming loans  40,265  42,158  38,782  35,067  35,876
Other real estate owned  4,461  2,979  2,716  2,787  2,411
Total nonperforming assets  $ 44,726  45,137  41,498  37,854  38,287
           
Florida          
Loans in nonaccrual status:          
Commercial  $ 2,595  2,698  2,698  8,435  5,874
Real estate mortgage - 1 to 4 family  7,013  7,820  8,438  7,954  9,404
Installment  1  1  7  1  --
Total non-accrual loans  9,609  10,519  11,143  16,390  15,278
Other nonperforming real estate mortgages - 1 to 4 family  --  --  --  --  --
Total nonperforming loans  9,609  10,519  11,143  16,390  15,278
Other real estate owned  5,406  5,726  5,975  1,083  1,293
Total nonperforming assets  $ 15,015  16,245  17,118  17,473  16,571
           
Total          
Loans in nonaccrual status:          
Commercial  $ 8,573  9,333  8,578  14,091  11,541
Real estate mortgage - 1 to 4 family  41,040  43,106  41,031  37,121  39,298
Installment  36  7  78  2  9
Total non-accrual loans  49,649  52,446  49,687  51,214  50,848
Other nonperforming real estate mortgages - 1 to 4 family  225  231  238  243  306
Total nonperforming loans  49,874  52,677  49,925  51,457  51,154
Other real estate owned  9,867  8,705  8,691  3,870  3,704
Total nonperforming assets  $ 59,741  61,382  58,616  55,327  54,858
           
           
Quarterly Net Chargeoffs
  03/31/13 12/31/12 09/30/12 06/30/12 03/31/12
New York and other states*          
Commercial  $ 248  152  9  713  321
Real estate mortgage - 1 to 4 family  1,563  1,410  2,157  1,844  1,136
Installment  15  72  7  7  (8)
Total net chargeoffs  $ 1,826  1,634  2,173  2,564  1,449
           
Florida          
Commercial  $ 99  (18)  736  288  160
Real estate mortgage - 1 to 4 family  344  810  644  665  1,673
Installment  --  12  1  --  --
Total net chargeoffs  $ 443  804  1,381  953  1,833
           
Total          
Commercial  $ 347  134  745  1,001  481
Real estate mortgage - 1 to 4 family  1,907  2,220  2,801  2,509  2,809
Installment  15  84  8  7  (8)
Total net chargeoffs  $ 2,269  2,438  3,554  3,517  3,282
           
           
Asset Quality Ratios
  03/31/13 12/31/12 09/30/12 06/30/12 03/31/12
Total nonperforming loans(1)  $ 49,874  52,677  49,925  51,457  51,154
Total nonperforming assets(1)  59,741  61,382  58,616  55,327  54,858
Total net chargeoffs(2)  2,269  2,438  3,554  3,517  3,282
           
Allowance for loan losses(1) 47,658 47,927 47,364 48,018 48,535
           
Nonperforming loans to total loans(1) 1.84% 1.96% 1.92% 2.01% 2.03%
Nonperforming assets to total assets(1) 1.35% 1.41% 1.36% 1.25% 1.25%
Allowance for loan losses to total loans(1) 1.76% 1.79% 1.82% 1.88% 1.92%
Coverage ratio(1) 95.6% 91.0% 94.9% 93.3% 94.9%
Annualized net chargeoffs to average loans(2) 0.34% 0.37% 0.55% 0.55% 0.52%
Allowance for loan losses to annualized net chargeoffs(2) 5.3x 4.9x 3.3x 3.4x 3.7x
           
* Includes New York, New Jersey, Vermont and Massachusetts.
(1) At period-end          
(2) For the period ended          
 
 
DISTRIBUTION OF ASSETS, LIABILITIES AND SHAREHOLDERS' EQUITY--
INTEREST RATES AND INTEREST DIFFERENTIAL
             
(dollars in thousands) Three months ended Three months ended
(Unaudited) March 31, 2013 March 31, 2012
  Average Balance Interest   Average Rate Average Balance Interest Average Rate
             
             
Assets            
             
Securities available for sale:            
U. S. government sponsored enterprises  $ 270,953 816 1.20%  $ 590,746 2,304 1.56%
Mortgage backed securities and collateralized mortgage obligations-residential 557,408 2,769  1.99 204,659 1,093 2.14
State and political subdivisions 18,556 285 6.15 40,013 603 6.02
Corporate bonds 47,358 218 1.84 93,168 822 3.53
Small Business Administration-guaranteed participation securities 99,683 496  1.99  --   --  0.00
Mortgage backed securities and collateralized mortgage obligations-commercial 8,378 29  1.38  --   --  0.00
Other 660 5  3.03 660 5  3.03
             
Total securities available for sale 1,002,996 4,618  1.84 929,246 4,827  2.08
             
Federal funds sold and other short-term Investments 405,953 245 0.24 512,380 320 0.25
             
Held to maturity securities:            
U. S. government sponsored enterprises  --   -- 0.00  4,286  25 2.38
Corporate bonds 22,271 312 5.61 52,897 509 3.85
Mortgage backed securities and collateralized mortgage obligations-residential 103,607 789 3.05 143,146 1,290 3.60
             
Total held to maturity securities 125,878 1,101 3.50 200,329 1,824 3.64
             
Federal Reserve Bank and Federal Home Loan Bank stock 9,632 119  4.94 9,004 90  4.00
             
Commercial loans 216,210 2,847  5.27 241,269 3,363 5.57
Residential mortgage loans 2,136,067 25,684 4.83 1,962,648 26,112 5.33
Home equity lines of credit 333,434 2,800 3.41 314,999 2,865 3.66
Installment loans 4,528 158 14.20 3,615 145 16.15
             
Loans, net of unearned income 2,690,239 31,489 4.70 2,522,531 32,485 5.16
             
Total interest earning assets 4,234,698 37,572 3.56 4,173,490 39,546 3.79
             
Allowance for loan losses (48,458)     (49,840)    
Cash & non-interest earning assets 152,902     143,702    
             
             
Total assets  $ 4,339,142      $ 4,267,352    
             
             
Liabilities and shareholders' equity            
             
Deposits:            
Interest bearing checking accounts  $ 552,575 80 0.06%  $ 482,362 78 0.06%
Money market accounts 659,172 685 0.42 631,892 923 0.59
Savings 1,203,580 916 0.31 1,019,597 1,102 0.43
Time deposits 1,088,877 1,820 0.68 1,365,104 3,418 1.01
             
Total interest bearing deposits 3,504,204 3,501 0.41 3,498,955 5,521 0.63
Short-term borrowings 168,059 364 0.88 145,484 388 1.07
             
Total interest bearing liabilities 3,672,263 3,865 0.43 3,644,439 5,909 0.65
             
Demand deposits 287,700     261,650    
Other liabilities 20,003     18,230    
Shareholders' equity 359,176     343,033    
             
Total liabilities and shareholders' equity  $ 4,339,142      $ 4,267,352    
             
Net interest income , tax equivalent   33,707     33,637  
             
Net interest spread     3.13%     3.14%
             
Net interest margin (net interest income to total interest earning assets)     3.19%     3.23%
             
Tax equivalent adjustment   (102)     (253)  
             
             
Net interest income   33,605     33,384  

Non-GAAP Financial Measures Reconciliation

Tangible book value per share and tangible equity as a percentage of tangible assets at period end are non-GAAP financial measures derived from GAAP-based amounts. We calculate tangible equity and tangible assets by excluding the balance of intangible assets from shareholders' equity and total assets, respectively. We calculate tangible book value per share by dividing tangible equity by common shares outstanding, as compared to book value per common share, which we calculate by dividing shareholders' equity by common shares outstanding. We calculate tangible equity as a percentage of tangible assets at period end by dividing tangible equity by tangible assets at period end. We believe that this is consistent with the treatment by bank regulatory agencies, which exclude intangible assets from the calculation of risk-based capital ratios. 

The efficiency ratio is a non-GAAP measure of expense control relative to recurring revenue. We calculate the efficiency ratio by dividing total noninterest expenses as determined under GAAP, but excluding other real estate expense, net, which we refer to below as recurring expense, by net interest income (fully taxable equivalent) and total noninterest income as determined under GAAP, but excluding net gains on securities from this calculation, which we refer to below as recurring revenue. We believe that this provides one reasonable measure of core expenses relative to core revenue. 

We believe that these non-GAAP financial measures provide information that is important to investors and that is useful in understanding our financial position, results and ratios. Our management internally assesses our performance based, in part, on these measures. However, these non-GAAP financial measures are supplemental and are not a substitute for an analysis based on GAAP measures. As other companies may use different calculations for these measures, this presentation may not be comparable to other similarly titled measures reported by other companies. A reconciliation of the non-GAAP measures of tangible common equity, tangible book value per share and efficiency ratio to the underlying GAAP numbers is set forth below.
Non-GAAP Financial Measures Reconciliation    
               
(dollars in thousands, except per share amounts)    
(Unaudited)              
  03/31/13 12/31/12 09/30/12 06/30/12 03/31/12    
Tangible Book Value Per Share              
               
Equity  $ 360,889  358,798  357,617  349,907 344,646    
Less: Intangible assets  553  553  553  553  553    
Tangible equity  360,336  358,245  357,064  349,354  344,093    
               
Shares outstanding  94,071  93,935  93,807  93,674  93,549    
Tangible book value per share  3.83  3.81  3.81  3.73  3.68    
Book value per share  3.84  3.82  3.81  3.74  3.68    
               
Tangible Equity to Tangible Assets              
Total Assets 4,411,757 4,346,613 4,318,173 4,421,399 4,374,443    
Less: Intangible assets  553  553  553  553  553    
Tangible assets  4,411,204  4,346,060  4,317,620  4,420,846  4,373,890    
               
Tangible Equity to Tangible Assets 8.17% 8.24% 8.27% 7.90% 7.87%    
Equity to Assets 8.18% 8.25% 8.28% 7.91% 7.88%    
               
  3 Months Ended Year Ended
Efficiency Ratio 03/31/13 12/31/12 09/30/12 06/30/12 03/31/12 12/31/12 12/31/11
               
Net interest income (fully taxable equivalent)  $ 33,707  33,718  34,321  33,993 33,637  135,669  135,717
Non-interest income  4,592  6,161  5,217  4,577  5,010  20,964  18,773
Less: Net gain on securities  2  763  666  55  677  2,161  1,428
Recurring revenue  38,297  39,116  38,872  38,515  37,970  154,472  153,062
               
Total Noninterest expense  21,557  21,150  20,643  21,049  21,136  83,977  82,142
Less: Other real estate expense, net  749  375  1,210  665  966  3,216  5,693
Recurring expense  20,808  20,775  19,433  20,384  20,170  80,761  76,449
               
Efficiency Ratio 54.33% 53.11% 49.99% 52.92% 53.12% 52.28% 49.95%
CONTACT: Kevin T. Timmons         Vice President/Treasurer         (518) 381-3607

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