TRST
#As the host said, I'm Rob <UNK>, President and CEO of the Bank.
As usual, I'm joined by our CFO, <UNK> <UNK>, and our Chief Banking Officer <UNK> <UNK>.
Also in the room is Kevin Timmons, who a lot of you deal with regularly.
Our plan is the same as always.
I will give a brief summary, then turn it over to <UNK> <UNK> to detail the numbers.
<UNK> <UNK> with the Operations, especially our loan portfolio.
This will leave time for questions you may have.
Our loan growth has been very good.
We ended the quarter at $3.34 billion.
That's up about $100 million year over year.
We have seen some seasonality return to residential mortgage lending.
We've built a decent backlog, which <UNK> will touch on later in the call.
As our release stated, our loan growth was impacted by about $11 million of loans outstanding in our commercial loan portfolio.
As we talked about before, we are seeing some very aggressive lenders in the areas we service, both REITs and standards.
We're working with our existing customers and taking a cautious approach to this lending segment.
Our asset quality remains strong.
Nonperforming assets fell by $5.7 million year over year, resulting in a nonperforming asset ratio of 0.68%, compared to 0.81% a year ago.
Nonperforming loans also showed improvement, as did early-stage delinquencies and charge-offs.
We continue to grow our deposit base to $4.18 billion.
We are encouraged with our core growth and our average deposits per branch continuing to grow and show improvement.
We didn't open any branches this quarter.
As a matter fact, we closed one of our Union Street branches earlier in the year.
The building has been sold, and the closing took place in early July.
Just a good opportunity for consolidation.
Our return on average assets was 0.88%.
Our return on average equity was 9.88%.
Our margin, quarter over quarter, was down a little to 3.09%, but that's actually better than 2015.
We continue to maintain a strong loan loss allowance with solid coverage ratio, which also showed continued improvement.
Our efficiency ratio is 57.7%, higher than we like but better than most.
Certainly the cost of compliance is a factor.
Our tangible equity ratio has shown steady growth, growing this quarter to 8.9%.
We are operating under a formal agreement, I think most of you know that, with the OCC.
While not a lot can be discussed, we are moving forward with a lot of validations, and are optimistic we will emerge a better Company.
(inaudible) did not receive enough votes to pass this year's proxy.
Our Board compensation committee has taken us under review.
As a matter of fact, there was a release last night about our call-back policy.
Most of you know we maintain a relatively large investment portfolio with a very strong liquidity position.
Banking is certainly a challenging environment.
We feel our Company is well-positioned to deal with whatever is thrown at us, and we are very optimistic about the future of our Company.
Now I'm going to turn it over to <UNK> to detail the numbers.
Thanks, <UNK>.
We'd be happy to answer any questions you might have.
Good morning, Alex.
We haven't seen a big change in that number, Alex.
It's about seven and one-half years, and seven and one-half years to nine years, depending on the month.
There has been some extension, but nothing that's significant and ---+ or really even worth mentioning at this point.
So it's a $3.3 billion behemoth [de moose] ---+ like a dinosaur, and it takes a lot of origination to move that either way.
And consumer habits ---+ I think we've talked about on the call before ---+ consumer habits certainly haven't changed, and we haven't seen people sticking with the mortgage just because of that.
They still want the new bathrooms, and they get divorced, and all of those things.
And you also to remember, our average loan balance is probably a little lower than our peer group, too.
What happens is you get ---+ yes ---+ I don't know, do you want to answer it.
What happens is, a lot of times impaired loans, you have to keep them nonperforming for a very long period of time.
So if there's an opportunity ---+ for the life of loan.
If there's an opportunity to unload them at a decent price, Alex, we take advantage of it.
We are not burdened with it.
We've done it several times in the past.
Yes, I think we're spending more time on our deposit pricing, and looking for opportunities in our CD portfolio.
And as far as the investment portfolio goes, we are trying to stay as short as we possibly can, and not getting crazy on that.
If you've held the trigger for as long as we have, we certainly don't want to blow it at the last ---+ at the end of the ---+ at what appears to be the end of a cycle.
Yes, when we look at it, the reality is, is the loan portfolio is still the ---+ and we've said it before, but it's ---+ the loan portfolio is still the best place to put the money.
And you look at last quarter, we did deploy North of $100 million into the investment portfolio.
So we're in the market, but just what Rob said, we're not looking to go too far in right now at what we probably ---+ which is probably [the mob].
Your question about floor earlier, Alex, was perfect, because if Cushing and my father were here, they probably would have said 7%.
(laughter).
Shows how the world has changed.
Thank you
Thank you for your interest in our Company, and have a great day.
