TrustCo Bank Corp NY (TRST) 2026 Q1 法說會逐字稿

Good day, and welcome to the TrustCo Bank Corp earnings call and webcast.

各位好，歡迎參加 TrustCo Bank Corp 財報電話會議與網路直播。

(Operator Instructions)

（接線員指示）

Before proceeding, we would like to mention that this presentation may contain forward-looking information about the TrustCo Bank Corp New York that is intended to be covered by the Safe Harbor for forward-looking statements provided by the Private Securities Litigation Reform Act of 1995.

在開始之前，我們想提及，本簡報可能包含關於 TrustCo Bank Corp New York 的前瞻性資訊，該等資訊旨在受 1995 年《私人證券訴訟改革法》（Private Securities Litigation Reform Act of 1995）所提供之前瞻性陳述「安全港」條款保障。

Actual results, performance or achievements could differ materially from those expressed or implied by such statements due to various risks, uncertainties and other factors. More detailed information about these and other factors can be found in our press release that preceded this call and in the Risk Factors and Forward-Looking Statements section of our annual report on Form 10-K as updated by our quarterly reports on Form 10-Q.

由於各種風險、不確定性及其他因素，實際結果、表現或成就可能與該等陳述所明示或暗示者存在重大差異。關於這些及其他因素的更詳細資訊，請參閱本次電話會議前發布的新聞稿，以及我們的 Form 10-K 年度報告中「風險因素」與「前瞻性陳述」章節（並由後續 Form 10-Q 季度報告更新）。

The forward-looking statements made on this call are valid only as date hereof, and the company disclaims any obligation to update this information to reflect events or developments after the date of this call, except as may be required by applicable law.

本次電話會議所作之前瞻性陳述僅以本日為準；除非適用法律另有要求，公司不承擔於本次電話會議日期後更新該等資訊以反映後續事件或發展之任何義務。

During today's call, we will discuss certain financial measures derived from our financial statements that are not determined in accordance with US GAAP. A reconciliation of such non-GAAP financial measures to the most comparable GAAP figures are included in our earnings press release, which is available under the Investor Relations tab of our website at trustcobank.com.

在今天的電話會議中，我們將討論若干源自財務報表、但並非依照美國一般公認會計原則（US GAAP）決定的財務衡量指標。此等非 GAAP 財務衡量指標與最可比 GAAP 數字之調節表已收錄於我們的財報新聞稿中；該新聞稿可於 trustcobank.com 網站「投資人關係」（Investor Relations）分頁取得。

Please also note that today's event is being recorded. A replay of this call will be available for 30 days, and an audio webcast will be available for one year as described in our earnings press release. At this time, I would like to turn the conference call over to Mr. Robert J. McCormick, Chairman, President, CEO. Please go ahead.

另請注意，今天的活動將被錄音。本次電話會議的重播將提供 30 天，音訊網路直播將提供一年，詳情如我們的財報新聞稿所述。現在，我想將電話會議交給 Robert J. McCormick 先生，董事長、總裁暨執行長。請開始。

Good morning, everyone, and thank you for joining the call. I'm Rob McCormick, the President of TrustCo Bank Corp. I'm joined today, as usual, by Mike Ozimek, our CFO, who will go through the numbers; and Kevin Curley, our Chief Banking Officer, who will talk about lending.

各位早安，感謝加入本次電話會議。我是 Rob McCormick，TrustCo Bank Corp 總裁。今天照例與我一同出席的有：我們的財務長 Mike Ozimek，他將說明財務數字；以及我們的首席銀行業務長 Kevin Curley，他將談放款業務。

We're pleased to report that 2026 is off to a great start with net income of over $16 million, improving margin, positive return metrics and building momentum in our share buyback program. Net income improved in part because of strategic pricing of our time deposit products, which had the effect of reducing our cost of funds.

我們很高興報告，2026 年開局表現亮眼：淨利超過 1,600 萬美元、利差改善、報酬指標轉正，且我們的庫藏股回購計畫動能持續增強。淨利的提升部分來自我們對定期存款產品的策略性定價，進而降低了資金成本。

Also, contributing to this growth was noninterest income generated by our wealth management department, which increased 9% quarter-over-quarter. The most meaningful part of the story and a matter of significant shareholder interest is that the loan portfolio is, as expected, repricing as loans booked at lower rates over the past few years are replaced by higher earning loans. As the loan portfolio reaches another all-time high this quarter, the positive effect of repricing is becoming more pronounced and is having a meaningful impact on our financials.

此外，財富管理部門所帶來的非利息收入亦促成成長，季對季增加 9%。本季最關鍵的重點、也是股東高度關注之處在於：如預期，放款組合正在重新定價，因為過去幾年以較低利率承作的貸款正由收益更高的新貸款所取代。隨著本季放款組合再創歷史新高，重新定價的正面效果愈發明顯，並對我們的財務表現產生實質影響。

The great results announced yesterday are further bolstered by our stock buyback program. As investors will recall, we repurchased 1 million shares during 2025 and have received authorization to buy another 2 million shares this year. In the first-quarter of 2026, we purchased over 500,000 shares, putting us on pace to fully execute.

昨日公布的優異成果，也因我們的股票回購計畫而更為強化。投資人將記得，我們在 2025 年回購了 100 萬股，並已取得今年再回購 200 萬股的授權。於 2026 年第一季，我們已回購超過 50 萬股，使我們有望按進度完成全數執行。

We continue to believe that the best acquisition we can make is TrustCo Bank, and we expect that share repurchase will remain the centrepiece of our capital deployment strategy. Each of these pieces of our company strategy over the quarter generated significant improvement in our return metrics, highlighting our profitability, efficiency, and capital leverage.

我們仍然相信，能做出的最佳併購就是收購 TrustCo Bank 自己（回購自家股票），並預期股票回購將持續作為我們資本配置策略的核心。上述公司策略在本季各面向均帶來顯著的報酬指標改善，凸顯我們的獲利能力、效率與資本槓桿運用。

Year-over-year, we saw return on average assets increased 10% to 1.02%. Return on average equity grew 14% to 9.66%. Our efficiency ratio was lower by 6% to 54%. Now Mike will get into the details. Mike?

年對年而言，平均資產報酬率（ROAA）提升 10% 至 1.02%；平均股東權益報酬率（ROAE）成長 14% 至 9.66%。效率比率下降 6% 至 54%。接下來由 Mike 說明細節。Mike？

Thank you, Rob, and good morning, everyone. I'll now review TrustCo's financial results for the first-quarter '26. As we noted in the press release, the company continued to see strong financial results for the first-quarter of 2026, marked by increases in both net income and net interest income of the bank during the first-quarter compared to the first-quarter of 2025.

謝謝你，Rob，各位早安。接下來我將回顧 TrustCo 2026 年第一季的財務結果。如同我們在新聞稿中所述，公司在 2026 年第一季持續展現強勁的財務表現，與 2025 年第一季相比，本行於第一季的淨利與淨利息收入均有所增加。

This performance is underscored by rising net interest income, continued margin expansion and sustained loan and deposit growth across key portfolios. This resulted in first-quarter net income of $16.3 million, an increase of 14.1% over the prior year quarter, which yielded a return on average assets and average equity of 1.02% and 9.66%, respectively.

此一表現反映在淨利息收入上升、利差持續擴大，以及主要投資組合的放款與存款維持成長。第一季淨利為 1,630 萬美元，較去年同期增加 14.1%，相對應的平均資產報酬率與平均股東權益報酬率分別為 1.02% 與 9.66%。

Capital remains strong. Consolidated equity to assets ratio was 10.31% for the first-quarter of '26 compared to 10.85% in the first-quarter of '25. Book value per share at March 31, '26 was $38.32, up 6% compared to $36.16 a year earlier.

資本水準仍然強勁。2026 年第一季合併股東權益占資產比率為 10.31%，相較 2025 年第一季的 10.85%。截至 2026 年 3 月 31 日，每股帳面價值為 38.32 美元，較一年前的 36.16 美元成長 6%。

During the first-quarter of 2026, TrustCo repurchased 522,000 shares of common stock or 2.9% of TrustCo's outstanding common stock under its previously announced repurchase program that allows the company to repurchase up to 2 million shares or 11.1% of TrustCo common stock in 2026.

2026 年第一季期間，TrustCo 依先前公告之回購計畫回購普通股 522,000 股，約占 TrustCo 流通在外普通股的 2.9%。該回購計畫允許公司於 2026 年最多回購 200 萬股，或約占 TrustCo 普通股的 11.1%。

We remain committed to returning value to shareholders through a disciplined share repurchase program, which reflects our confidence in the long-term strength of the franchise and our focus on capital optimization. Credit quality continues to be consistent as we saw nonperforming loans modestly increased to $21.5 million in the first-quarter of '26 from $18.8 million in the first-quarter of '25.

我們仍致力於透過紀律嚴謹的股票回購計畫為股東創造價值，這反映我們對特許經營長期實力的信心，以及對資本最佳化的專注。資產品質持續維持一致；不良放款於 2026 年第一季小幅增加至 2,150 萬美元，較 2025 年第一季的 1,880 萬美元上升。

Nonperforming loans to total loans increased to 41 basis points in the first-quarter of '26 from 37 basis points in the first-quarter of '25. Nonperforming assets to total assets was 35 basis points, up from 33 basis points in the first-quarter of '25.

不良放款占總放款比率於 2026 年第一季由 2025 年第一季的 37 個基點上升至 41 個基點。不良資產占總資產比率為 35 個基點，高於 2025 年第一季的 33 個基點。

Our continued focus on solid underwriting within our loan portfolio and conservative lending standards positions us to manage credit risk effectively in the current environment. Average loans for the first-quarter of '26 grew 3.1% or $158.9 million to $5.3 billion from the first-quarter of '25, an all-time high. Consequently, overall loan growth has continued to increase and leading the charge was the home equity lines of credit portfolio, which increased $50.8 million or 12.3% in the first-quarter of '26 over the same period in '25 and the residential real estate portfolio, which increased $93.2 million or 2.1%.

我們持續聚焦於放款組合的穩健授信審查與保守放款標準，使我們能在目前環境中有效管理信用風險。2026 年第一季平均放款較 2025 年第一季成長 3.1%，增加 1.589 億美元至 53 億美元，創歷史新高。因此，整體放款成長持續增加，其中帶頭的是房屋淨值信用額度（HELOC）組合，2026 年第一季較 2025 年同期增加 5,080 萬美元或 12.3%；以及住宅不動產組合，增加 9,320 萬美元或 2.1%。

Average commercial loans also increased $17.1 million or 5.8%. This uptick continues to reflect our local -- very strong local economy and increased demand for debt. For the first-quarter of '26, the provision for credit losses was $950,000. Retaining deposits has also been a key focus as we begin '26. Total deposits ended the quarter at $5.7 billion and was up $156 million compared to the prior year quarter.

平均商業放款亦增加 1,710 萬美元或 5.8%。此一增幅持續反映我們當地——非常強勁的在地經濟，以及對債務融資需求的增加。2026 年第一季信用損失準備提列為 95 萬美元。隨著我們展開 2026 年，留存存款亦是重點工作之一。總存款於季末為 57 億美元，較去年同期增加 1.56 億美元。

We believe the increase in these deposits compared to the same period in '25 continues to indicate strong customer confidence in the bank's competitive deposit offerings. The bank's continued emphasis on relationship banking, combined with competitive product offerings and digital capabilities has contributed to a stable deposit base that supports ongoing loan growth and expansion.

我們認為，與 2025 年同期相比存款的增加，持續顯示客戶對本行具競爭力之存款產品的高度信心。本行持續強調關係銀行（relationship banking），結合具競爭力的產品與數位能力，促成穩定的存款基礎，進而支持放款持續成長與業務擴張。

Net interest income was $44.7 million for the first-quarter of '26, an increase of $4.3 million or 10.7% compared to the prior year quarter. The net interest margin for the first-quarter of '25 was 2.84%, up 20 basis points from the prior year quarter.

2026 年第一季淨利息收入為 4,470 萬美元，較去年同期增加 430 萬美元或 10.7%。2025 年第一季的淨利息利差為 2.84%，較去年同期上升 20 個基點。

Yield on interest-earning assets increased to 4.23%, up 10 basis points from the prior year quarter, and the cost of interest-bearing liabilities decreased to 1.79% in the first-quarter of '26 from 1.92% in the first-quarter of '25. The bank is well positioned to continue delivering strong net interest income performance even as the Federal Reserve contemplates whether or not to make rate changes in the months ahead. The bank remains committed to maintaining competitive deposit offerings while ensuring financial stability and continued support for our community banking needs.

生息資產收益率上升至 4.23%，較去年同期增加 10 個基點；計息負債成本於 2026 年第一季降至 1.79%，低於 2025 年第一季的 1.92%。即使聯準會在未來數月考量是否調整利率，本行仍具備良好條件持續交出強勁的淨利息收入表現。本行仍致力於維持具競爭力的存款產品，同時確保財務穩健，並持續支持我們社區銀行業務的需求。

Our Wealth Management division continues to be a significant recurring source of noninterest income. It had approximately about $1.26 billion of assets under management as of March 31, 2026. Noninterest income attributable to wealth management and financial services fees represent 44.1% of noninterest income. The majority of this fee income is recurring, supported by long-term advisory relationships and a growing base of managed assets.

我們的財富管理事業部門持續成為非利息收入的重要經常性來源。截至2026年3月31日，其管理資產規模約為12.6億美元。歸因於財富管理與金融服務手續費的非利息收入占非利息收入的44.1%。此類手續費收入多數為經常性收入，並由長期顧問關係及持續成長的受託管理資產基礎所支撐。

Now on to noninterest expense. Total noninterest expense net of ORE expense came in at $26.9 million, up $631,000 from the prior year quarter. ORE expense net came in at an expense of $50,000 for the quarter as compared to $28,000 in the prior year quarter. We're going to continue to hold the anticipated level of expense not to exceed $250,000 per quarter. All the other categories of noninterest expense were in line with our expectations for the first-quarter.

接著談非利息費用。扣除ORE費用後的非利息費用總額為2,690萬美元，較去年同期增加63.1萬美元。本季ORE費用（淨額）為5萬美元的費用，去年同期為2.8萬美元。我們將持續將預期費用水準控制在每季不超過25萬美元。其他各項非利息費用類別均符合我們對第一季的預期。

We would expect 2026 total recurring noninterest expense net of ORE expense to be in the range of $26.7 million to $27.3 million. Now Kevin will review the loan portfolio and nonperforming loans.

我們預期2026年扣除ORE費用後的經常性非利息費用總額將落在2,670萬至2,730萬美元之間。接下來Kevin將檢視貸款組合與不良貸款。

Thanks, Mike, and good morning to everyone. Our average loans grew by $158.9 million or 3.1% year-over-year. This is an improvement over last quarter's report of year-over-year growth of $126.8 million. The growth was centered in our residential loan portfolio with our first mortgage segment growing by $93.2 million or 2.1% and our home equity loans growing $50.8 million or 12.3% over last year. In addition, our commercial loans grew by $17.1 million or 5.8% over last year.

謝謝你，Mike，也向各位道早安。我們的平均貸款年增1.589億美元，或3.1%。這較上季所報告的年增1.268億美元有所改善。成長主要集中在住宅貸款組合，其中第一順位房貸部位年增9,320萬美元或2.1%，房屋淨值貸款年增5,080萬美元或12.3%。此外，我們的商業貸款年增1,710萬美元或5.8%。

For the first-quarter, actual loans increased by $37.7 million compared to the fourth-quarter. Purchased mortgage loans, including refinances and home equity loans grew by $35.3 million and commercial loans were up by $3.3 million for the quarter. Our mortgage origination activity showed solid improvement during the quarter and year-over-year. Purchase loan volume was steady throughout the quarter. Refinance activity picked up earlier in the period with lower rates, then eased as market rates moved higher during the second half of the quarter.

第一季實際貸款較第四季增加3,770萬美元。購入的房貸（包含再融資與房屋淨值貸款）增加3,530萬美元，商業貸款本季增加330萬美元。本季及年增而言，我們的房貸承作活動呈現明顯改善。購屋貸款量在整個季度維持穩定。再融資活動在期間前段因利率較低而回升，但在季度後半段市場利率走高後有所趨緩。

In all of our markets, rates were lower in the beginning of the quarter, decreased closer to 6.75% and have recently receded to 6% to 6.25% range. We continue to offer highly competitive mortgage rates with our 30-year fixed rate at 5.99%. In addition, our home equity products continue to offer customers lower cost alternatives to other forms of credit. Overall, we are positive about our loan growth in the quarter and remain focused on driving stronger results moving forward.

在我們所有市場中，季度初利率較低，降至接近6.75%，近期又回落至6%至6.25%的區間。我們持續提供極具競爭力的房貸利率，30年期固定利率為5.99%。此外，我們的房屋淨值產品持續為客戶提供相較其他信用形式成本更低的替代方案。整體而言，我們對本季貸款成長持正面看法，並將持續專注於推動未來更強勁的成果。

Now on to asset quality. As a portfolio lender, we originate loans to hold for the full term, reinforcing our disciplined underwriting standards. Asset quality at the bank remains very strong. Our early-stage delinquencies for our portfolio continue to remain stable. Charge-offs for the quarter amounted to a net recovery of $39,000, which follows a net recovery of $14,000 in the fourth-quarter and a total of $238,000 in recoveries over the past year.

接著談資產品質。作為投資組合型放款機構，我們承作貸款並持有至到期，這也強化了我們嚴謹的授信審核標準。本行資產品質仍然非常強健。我們投資組合的早期逾期情況持續保持穩定。本季沖銷為淨回收3.9萬美元，延續第四季淨回收1.4萬美元的表現，且過去一年合計回收23.8萬美元。

Nonperforming loans were $21.5 million at this quarter end, $20.7 million last quarter and $18.8 million a year ago. Nonperforming loans to total loans was 0.41% at this quarter end compared to 0.39% last quarter and 0.37% a year ago. Nonperforming assets were $22.8 million at quarter end versus $22.1 million last quarter and $20.9 million a year ago. At quarter end, our allowance for credit losses remained solid at $53 million with a coverage ratio of 247% compared to $52.2 million with a coverage ratio of 253% at year-end and $50.6 million with a coverage ratio of 270% a year ago.

本季季末不良貸款為2,150萬美元，上季為2,070萬美元，一年前為1,880萬美元。不良貸款占總貸款比率本季季末為0.41%，上季為0.39%，一年前為0.37%。季末不良資產為2,280萬美元，上季為2,210萬美元，一年前為2,090萬美元。季末，我們的信用損失備抵仍維持穩健，為5,300萬美元，覆蓋率為247%；相較之下，年末為5,220萬美元、覆蓋率253%，一年前為5,060萬美元、覆蓋率270%。

Rob, that's our story. We're happy to answer any questions you may have.

Rob，以上就是我們的說明。我們很樂意回答各位可能有的任何問題。

(Operator Instructions)

（接線員指示）

Ian Lapey, Gabelli Funds.

Ian Lapey，Gabelli Funds。

Congratulations. Just a couple. So the provision more than tripled compared to a year ago despite really solid metrics in terms of your portfolio, and you mentioned stable early-stage delinquencies. So are you still -- you mentioned in the release a more cautious economic outlook. Are you still using the baseline Moody's forecast or are you doing something else?

恭喜。只有幾個問題。儘管你們的投資組合指標非常穩健，而且你們提到早期逾期情況穩定，但提存（備抵）相較一年前增加到三倍以上。你們也在新聞稿中提到較為審慎的經濟展望。所以你們仍然使用穆迪（Moody's）的基準情境預測嗎？還是採用其他方式？

Yes. So we are still using the baseline Moody's forecast. And I mean, what's really driving that increase in the provision, I mean, about half of it is loan growth and about half of it is that forward-looking component of the Moody's forecast that does have some of the economic factors looking slightly negative on the go forward. So that's what drives that calculation.

是的。我們仍然使用穆迪的基準情境預測。至於真正推動提存增加的因素，大約一半來自貸款成長，另一半來自穆迪預測中的前瞻性組成部分；其中部分經濟因素在未來展望上略偏負面。因此這就是推動該計算的原因。

Okay. And then the release mentions competitive pressure on deposit pricing. Can you just talk about is anything new, any new entrants or anything changing there? And what's your -- it seems like you're doing quite well in.

了解。接著新聞稿提到存款定價面臨競爭壓力。你能談談是否有任何新情況、是否有新的競爭者進入，或那邊有什麼變化嗎？以及你們的——看起來你們做得相當不錯。

I don't think there's anything new, Ian, but it's the same old, same old. A lot of the consumers are pushing for obviously higher CD rates. I think more than I've ever never seen before in my career anyway. Consumers have a magic number in their mind that they're pushing for. And you also have the natural competitors from the credit unions that we compete against.

我不認為有任何新情況，Ian，但就是老樣子。很多消費者顯然在要求更高的定存（CD）利率。我想在我的職涯中，從未見過像現在這樣的情況。消費者心中有一個「魔術數字」，一直在爭取。此外，我們也面臨與我們競爭的信用合作社這些自然競爭者。

So they're tough competitors from a rate perspective. They don't have the same motivation and same issues that we have. So nothing really new, just those two popping up.

所以從利率角度來看，他們是很強的競爭對手。他們沒有我們同樣的動機，也沒有我們同樣的問題。因此沒有什麼真正新的變化，就只是這兩點一直存在。

Okay. And then lastly, on capital, what was the Tier 1 common equity ratio? And as you continue to repurchase shares, -- where -- what's your comfort level in terms of where you'd like to see -- where you'd be comfortable with that settling out? I know it was 18.4% at year-end.

了解。最後一個問題，關於資本：第一級普通股權（Tier 1 common equity）比率是多少？以及在你們持續回購股票的同時——你們的舒適水位是什麼？也就是你們希望看到、或你們會覺得合理的落點在哪裡？我知道年末是18.4%。

Yes. The share repurchase, we're taking it kind of one bite at a time and slower. Mike can comment on this if he wants. But we're taking it as we possibly can. We are fully committed and believe in the share repurchase, but we're certainly not going to jeopardize our capital position or our liquidity position to repurchase shares. We've always been known, you know, you've seen the way we run the place. We've always been known as well capitalized and very liquid by all measures, and we certainly wouldn't want to do anything to disrupt that.

是的。關於股票回購，我們採取循序漸進、步調較慢的方式。Mike如果想補充也可以。不過我們會在能力所及的範圍內進行。我們完全承諾並且相信股票回購，但我們當然不會為了回購而危及我們的資本部位或流動性部位。大家也知道我們一向的經營方式；在各項衡量標準下，我們一直以資本充足、流動性非常充裕著稱，我們當然不希望做任何會破壞這點的事情。

Okay. Good. And then do you have the CET1 ratio? I know it will be in the queue.

好的，很好。那你們有普通股權第一級資本（CET1）比率嗎？我知道之後會在申報文件裡。

We haven't disclosed it yet, but I mean it's trending down the same way that the leverage ratio is trending. So we're putting that capital to work.

我們尚未揭露，但它的走勢與槓桿比率的走勢一致，都是往下。因此我們正在讓這些資本發揮效益。

Okay, great and congrats again.

好的，很棒，再次恭喜。

This concludes our question-and-answer session. I would like to turn the conference back over to Robert McCormick for any closing remarks.

本次問答環節到此結束。接下來我想把電話會議交回給Robert McCormick，請他做結語。

Thank you for your interest in our company, and have a great day.

感謝各位對本公司的關注，祝各位有美好的一天。

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

本次電話會議已結束。感謝各位參加今天的簡報。您現在可以掛線。