|
|
|
(State or other jurisdiction of incorporation or organization)
|
(I.R.S. Employer Identification No.)
|
|
|
|
(Address of principal executive offices)
|
(Zip Code)
|
Registrant’s telephone number, including area code:
|
(
|
Title of each class
|
Trading Symbol (s)
|
Name of each exchange on which registered
|
|
|
|
|
Accelerated filer ☐
|
Non-accelerated filer ☐
|
Smaller reporting company
|
Emerging growth company
|
Common Stock
|
Number of Shares Outstanding
as of April 29, 2022 |
$1 Par Value
|
|
Part I.
|
FINANCIAL INFORMATION
|
PAGE NO.
|
Item 1.
|
Consolidated Interim Financial Statements (Unaudited):
|
|
|
|
|
|
3 | |
|
|
|
|
4 | |
|
|
|
|
5 | |
|
|
|
|
6 | |
|
|
|
|
7 | |
|
|
|
|
8-42
|
|
|
|
|
|
43
|
|
|
|
|
Item 2.
|
44-63
|
|
|
|
|
Item 3.
|
64
|
|
|
|
|
Item 4.
|
64
|
|
|
|
|
Part II.
|
OTHER INFORMATION
|
|
|
|
|
Item 1.
|
65
|
|
|
|
|
Item 1A.
|
65
|
|
|
|
|
Item 2.
|
65
|
|
|
|
|
Item 3.
|
65
|
|
|
|
|
Item 4.
|
66
|
|
|
|
|
Item 5.
|
66
|
|
|
|
|
Item 6.
|
66
|
Three months ended
March 31,
|
||||||||
2022
|
2021
|
|||||||
Interest and dividend income:
|
||||||||
Interest and fees on loans
|
$
|
|
|
|||||
Interest and dividends on securities available for sale:
|
||||||||
U. S. government sponsored enterprises
|
|
|
||||||
State and political subdivisions
|
|
|
||||||
Mortgage-backed securities and collateralized mortgage obligations
|
|
|
||||||
Corporate bonds
|
|
|
||||||
Small Business Administration-guaranteed participation securities
|
|
|
||||||
Other securities
|
|
|
||||||
Total interest and dividends on securities available for sale
|
|
|
||||||
Interest on held to maturity securities:
|
||||||||
Mortgage-backed securities and collateralized mortgage obligations-residential
|
|
|
||||||
Total interest on held to maturity securities
|
|
|
||||||
Federal Reserve Bank and Federal Home Loan Bank stock
|
|
|
||||||
Interest on federal funds sold and other short-term investments
|
|
|
||||||
Total interest income
|
|
|
||||||
Interest expense:
|
||||||||
Interest on deposits:
|
||||||||
Interest-bearing checking
|
|
|
||||||
Savings accounts
|
|
|
||||||
Money market deposit accounts
|
|
|
||||||
Time deposits
|
|
|
||||||
Interest on short-term borrowings
|
|
|
||||||
Total interest expense
|
|
|
||||||
Net interest income
|
|
|
||||||
(Credit) Provision for credit losses
|
(
|
)
|
|
|||||
Net interest income after (credit) provision for credit losses
|
|
|
||||||
Noninterest income:
|
||||||||
Trustco financial services income
|
|
|
||||||
Fees for services to customers
|
|
|
||||||
Other
|
|
|
||||||
Total noninterest income
|
|
|
||||||
Noninterest expenses:
|
||||||||
Salaries and employee benefits
|
|
|
||||||
Net occupancy expense
|
|
|
||||||
Equipment expense
|
|
|
||||||
Professional services
|
|
|
||||||
Outsourced services
|
|
|
||||||
Advertising expense
|
|
|
||||||
FDIC and other insurance
|
|
|
||||||
Other real estate expense, net
|
|
|
||||||
Other
|
|
|
||||||
Total noninterest expenses
|
|
|
||||||
Income before taxes
|
|
|
||||||
Income taxes
|
|
|
||||||
Net income
|
$
|
|
|
|||||
Net income per share (1):
|
||||||||
- Basic
|
$
|
|
|
|||||
- Diluted
|
$
|
|
|
(1) |
Three months ended
March 31,
|
||||||||
2022
|
2021
|
|||||||
Net income
|
$
|
|
|
|||||
Net unrealized holding loss on securities available for sale
|
(
|
)
|
(
|
)
|
||||
Tax effect
|
|
|
||||||
Net unrealized loss on securities available for sale, net of tax
|
(
|
)
|
(
|
)
|
||||
Amortization of net actuarial gain
|
(
|
)
|
(
|
)
|
||||
Amortization of prior service credit
|
(
|
)
|
(
|
)
|
||||
Tax effect
|
|
|
||||||
Amortization of net actuarial gain and prior service credit on pension and postretirement plans, net of tax
|
(
|
)
|
(
|
)
|
||||
Other comprehensive loss, net of tax
|
(
|
)
|
(
|
)
|
||||
Comprehensive income
|
$
|
|
|
March 31, 2022
|
December 31, 2021
|
|||||||
ASSETS:
|
||||||||
Cash and due from banks
|
$
|
|
|
|||||
Federal funds sold and other short term investments
|
|
|
||||||
Total cash and cash equivalents
|
|
|
||||||
Securities available for sale
|
|
|
||||||
Held to maturity securities ($
|
|
|
||||||
Federal Reserve Bank and Federal Home Loan Bank stock
|
|
|
||||||
Loans, net of deferred net costs
|
|
|
||||||
Less:
|
||||||||
Allowance for credit losses on loans
|
|
|
||||||
Net loans
|
|
|
||||||
Bank premises and equipment, net
|
|
|
||||||
Operating lease right-of-use assets
|
|
|
||||||
Other assets
|
|
|
||||||
Total assets
|
$
|
|
|
|||||
LIABILITIES:
|
||||||||
Deposits:
|
||||||||
Demand
|
$
|
|
|
|||||
Interest-bearing checking
|
|
|
||||||
Savings accounts
|
|
|
||||||
Money market deposit accounts
|
|
|
||||||
Time deposits
|
|
|
||||||
Total deposits
|
|
|
||||||
Short-term borrowings
|
|
|
||||||
Operating lease liabilities
|
|
|
||||||
Accrued expenses and other liabilities
|
|
|
||||||
Total liabilities
|
|
|
||||||
SHAREHOLDERS’ EQUITY:
|
||||||||
Capital stock par value $
|
|
|
||||||
Surplus
|
|
|
||||||
Undivided profits
|
|
|
||||||
Accumulated other comprehensive (loss) income, net of tax
|
(
|
)
|
|
|||||
Treasury stock at cost -
|
(
|
)
|
(
|
)
|
||||
Total shareholders’ equity
|
|
|
||||||
Total liabilities and shareholders’ equity
|
$
|
|
|
Capital
Stock (1)
|
Surplus (1)
|
Undivided
Profits
|
Accumulated
Other
Comprehensive
Income
|
Treasury
Stock
|
Total
|
|||||||||||||||||||
Beginning balance, January 1, 2021 (1)
|
$
|
|
|
|
|
(
|
)
|
|
||||||||||||||||
Net income
|
|
|
|
|
|
|
||||||||||||||||||
Other comprehensive loss, net of tax
|
|
|
|
(
|
)
|
|
(
|
)
|
||||||||||||||||
Stock options exercised (
|
||||||||||||||||||||||||
Cash dividend declared, $
|
|
|
(
|
)
|
|
|
(
|
)
|
||||||||||||||||
Purchase of treasury stock (
|
|
|
|
|
(
|
)
|
(
|
)
|
||||||||||||||||
Ending balance, March 31, 2021 (1)
|
$
|
|
|
|
|
(
|
)
|
|
||||||||||||||||
Beginning balance, January 1, 2022
|
$
|
|
|
|
|
(
|
)
|
|
||||||||||||||||
Cumulative impact of adoption of ASU 2016-13
|
( |
) | ( |
) | ||||||||||||||||||||
Balance, January 1, 2022 as adjusted for impact of adoption of ASU 2016-13
|
( |
) | ||||||||||||||||||||||
Net income
|
|
|
|
|
|
|
||||||||||||||||||
Other comprehensive loss, net of tax
|
|
|
|
(
|
)
|
|
(
|
)
|
||||||||||||||||
Cash dividend declared, $
|
|
|
(
|
)
|
|
|
(
|
)
|
||||||||||||||||
Purchase of treasury stock
|
|
|
|
|
(
|
)
|
(
|
)
|
||||||||||||||||
Ending balance, March 31, 2022
|
$
|
|
$ |
|
$ |
|
$ |
(
|
)
|
$ |
(
|
)
|
$ |
|
(1) | |
(2)
|
|
Three months ended March 31,
|
||||||||
2022
|
2021
|
|||||||
Cash flows from operating activities:
|
||||||||
Net income
|
$
|
|
|
|||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||
Depreciation
|
|
|
||||||
Amortization of right-of-use asset
|
|
|
||||||
Net gain on sale of other real estate owned
|
(
|
)
|
|
|||||
Writedown of other real estate owned
|
|
|
||||||
(Credit) provision for credit losses
|
(
|
)
|
|
|||||
Deferred tax expense
|
|
|
||||||
Net amortization of securities
|
|
|
||||||
Net gain on sale of bank premises and equipment
|
( |
) | ( |
) | ||||
Decrease in taxes receivable
|
|
|
||||||
Decrease in interest receivable
|
|
|
||||||
Decrease in interest payable
|
(
|
)
|
(
|
)
|
||||
Increase in other assets
|
(
|
)
|
(
|
)
|
||||
Decrease in operating lease liabilities
|
(
|
)
|
(
|
)
|
||||
Decrease in accrued expenses and other liabilities
|
(
|
)
|
(
|
)
|
||||
Total adjustments
|
(
|
)
|
(
|
)
|
||||
Net cash provided by operating activities
|
|
|
||||||
Cash flows from investing activities:
|
||||||||
Proceeds from sales, paydowns and calls of securities available for sale
|
|
|
||||||
Proceeds from paydowns of held to maturity securities
|
|
|
||||||
Purchases of securities available for sale
|
(
|
)
|
(
|
)
|
||||
Proceeds from maturities of securities available for sale
|
|
|
||||||
Net increase in loans
|
(
|
)
|
(
|
)
|
||||
Proceeds from dispositions of other real estate owned
|
|
|
||||||
Proceeds from dispositions of bank premises and equipment
|
|
|
||||||
Purchases of bank premises and equipment
|
(
|
)
|
(
|
)
|
||||
Net cash used in investing activities
|
(
|
)
|
(
|
)
|
||||
Cash flows from financing activities:
|
||||||||
Net increase in deposits
|
|
|
||||||
Net increase in short-term borrowings
|
|
|
||||||
Proceeds from exercise of stock options
|
|
|
||||||
Purchases of treasury stock
|
(
|
)
|
(
|
)
|
||||
Dividends paid
|
(
|
)
|
(
|
)
|
||||
Net cash provided by financing activities
|
|
|
||||||
Net increase in cash and cash equivalents
|
|
|
||||||
Cash and cash equivalents at beginning of period
|
|
|
||||||
Cash and cash equivalents at end of period
|
$
|
|
|
|||||
Supplemental Disclosure of Cash Flow Information:
|
||||||||
Cash paid during the year for:
|
||||||||
Interest paid
|
$
|
|
|
|||||
Income taxes paid
|
|
|
||||||
Other non cash items:
|
||||||||
Change in unrealized (loss) gain on securities available for sale-gross of deferred taxes
|
(
|
)
|
(
|
)
|
||||
Change in deferred tax effect on unrealized loss (gain) on securities available for sale
|
|
|
||||||
Amortization of net actuarial gain and prior service cost (credit) on pension and postretirement plans
|
(
|
)
|
(
|
)
|
||||
Change in deferred tax effect of amortization of net actuarial gain postretirement benefit plans
|
|
|
||||||
Security purchase settled in subsequent period
|
( |
) | ||||||
Impact to retained earnings from adoption of ASC 326, net of tax
|
( |
) |