TrustBank NY(US:TRST)2023-01-24 16:08Financial Data and Key Metrics Changes - The company reported a net income of $75.2 million for 2022, an increase of over 22% from 2021, marking a record year [4] - The return on average assets (ROA) and return on average equity (ROE) for Q4 2022 were 1.38% and 13.91% respectively, both showing improvement compared to the previous year [6] - The efficiency ratio improved to 48.8% in Q4 2022 from 58.5% in Q4 2021 [13] Business Line Data and Key Metrics Changes - The loan portfolio grew by 5.7% year-over-year, with significant growth in residential mortgages, commercial loans, and home equity lending [4][14] - The average commercial loan portfolio increased by 10.4% year-over-year, while residential real estate loans increased by 4.6% [7] - Non-performing loans decreased from $18.7 million to $17.5 million, with a non-performing loans ratio of 0.37% [17] Market Data and Key Metrics Changes - Total average deposits decreased by $25.4 million or 0.5% year-over-year, primarily due to a decrease in money market deposits [10] - The cost of interest-bearing deposits increased to 25 basis points from 11 basis points year-over-year, driven by higher time deposit rates [10] Company Strategy and Development Direction - The company plans to maintain a conservative approach to deposit pricing and focus on retaining existing deposits rather than aggressive growth [5][22] - There is an intention to add loan originators in the residential area and to begin originating secondary market products, which is a new venture for the company [16][29] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for 2023, citing a strong backlog of loans and a cautious approach to deposit offerings [6][24] - The company is closely monitoring the changing interest rate environment and is prepared to adjust its strategies accordingly [5][24] Other Important Information - The financial services division managed approximately $954 million in assets as of December 31, 2022, contributing to non-interest income [12] - The capital ratios remained strong, with a consolidated equity to assets ratio of 10% for Q4 2022 [13] Q&A Session Summary Question: Can you elaborate on the cautious approach to deposit pricing? - Management indicated a focus on retaining existing deposits and not aggressively pursuing new deposits at high rates [22] Question: Is there a target to keep deposits flat or grow them? - Management confirmed that they are more focused on maintaining deposits rather than aggressive growth [23] Question: Any changes in delinquencies in Florida or New York? - Management reported no changes in early-stage delinquencies across the board [27] Question: Can you provide details on the increase in commercial loan NPLs in Florida? - Management clarified that it pertains to a residential mortgage on a multi-family property [27] Question: What is the competitive environment in residential mortgage underwriting? - Management emphasized a conservative underwriting approach and a consistent performance strategy, welcoming competition [30]