Good day and welcome to the TrustCo Bank Corp First Quarter 2019 Earnings Call and Webcast. [Operator Instructions] Before proceeding, we would like to mention that this presentation may contain forward-looking information about 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. Actual results and trends could differ materially from those set forth in such statements due to various risks, uncertainties and other factors. More detailed information about these and other risk factors can be found in our press release that preceded this call and in the Risk Factors and Forward-Looking Statements sections of our Annual Report on Form 10-K and as updated by our quarterly reports on Form 10-Q. The statements are valid only as of the date hereof, and the company disclaims any obligation to update this information, except as may be required by applicable la6w. Today's presentation contains non-GAAP financial measures. The reconciliations of such 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. Please also note this event is being recorded. I would now like to turn the conference over to Mr. Robert McCormick, President and CEO. Mr. McCormick the floor is yours sir.

Thank you. Good morning, everyone. We had a solid first quarter at the bank. We earned 14.6 million in this quarter essentially flat or down a bit from the first quarter of 2018. This resulted in a return of assets of 1.17 or return of equity of 11.93. Our efficiency ratio ended this quarter at 56%. That's higher than we liked. This was driven by new hires. We had the opportunity to get some good people in a tight labor market. We can also smooth out some seasonality in the labor. We do not expect this trend to continue and expect improving the efficiency ratio long-term. Our margin was 3.24% at quarter end. We are paying more for deposits but keeping maturity short to provide repricing opportunities later in the year. Net interest income was up to over the same quarter last year. Loans were up nicely year-over-year driven by growth in the residential portfolio. We are flat or down a little from your end. We are seeing solid application volume and a growing backlog of pending loans. We did see nice deposit growth quarter-over-quarter and year-over-year. Again we are trying to keep maturity short. Growth also provided liquidity which we believe will provide opportunity and flexibility for the future. All non-performing ratio showed improvement quarter-over-quarter and year-over-year. Book value, capital equity all had nice growth year-over-year. We did not open any offices. As usual, Mike Ozimek, our CFO and Scott Salvador will give some additional detail. Then we can answer questions and wrap up the call. I'm proud of our first quarter results, which have provided us with a great foundation for the rest of 2019. Mike?

Thank you, Rob and good morning everyone. I will now review TrustCo's financial results for the first quarter of 2019. As we noted in the press release, the company saw net income of 14.6 million, which yielded a return on average assets and average equity of 1.17% and 11.93% respectively. Average loans for the first quarter of 2019 grew 6% or 217.8 million to 3.9 billion from the first quarter of 2018. As expected, the growth continues to be concentrated within our primary lending focus the residential real estate portfolio. At average portfolio increased by 226.3 million, or 7.2% the first quarter of 2019 over the same period in 2018. This continues the positive shift in a balance sheet from low yielding overnight investments to higher yielding core long relationships. At long portfolio expansion was funded by a combination of utilizing a portion of our cash balances and cash flow from our investment portfolios. Total average Investment Securities which includes the AFS and HTM portfolios decreased 74.5 million, or 12.2% over the same period last year. This was partially offset by purchases and approximately 67 million in securities, at an average yield of approximately 3.15% instead of late in the quarter. The full impact of the late first quarter wise will be felt in the second quarter of 2019. As discussed in prior calls, our focus continues to be on traditional lending and conservative balance sheet management, which has continued to enable us to produce consistent high quality recurring earnings. Our investment portfolio is and always has been a source of liquidity to fund long growth and provide flexibility for balance sheet management. As a result, we continue to hold an average of 503 million of overnight investments during the first quarter of 2019, a decrease of 26 million compared…

Thank you, Mike. The loan portfolio is growing 194 million as of March 31, versus the prior year in actual numbers. This equates to growth of 5.3%. Growth has been setting in our residential portfolio increasing by 185 million, with commercial and installment loans increasing by 5 million and 4 million respectively. On the quarter, loans decreased by 13 million with residential loans dropping by 8 million and commercial loans decreasing by 6 million. First quarter of the year is typically the slowest due to seasonal factors, a situation which was accentuated a bit due to the rise in interest rates earlier in the year. Additionally, we took advantage of the slower season and the strong results we enjoyed last year and focused on building additional liquidity in the early stages of 2019. Our loan backlog at quarter and was down about 10% from your end, reflecting the prior mentioned factors. However, as we enter our busy season, we feel we are well positioned for the remainder of the year. We expect to see increased backlog and growth as we move forward. Our current 30-year fixed rate stands at up for one 4.18%. Asset quality measurements are solid with continued slight improvement shown. As of quarter end, non-performing loans and non-performing assets stood at 24.7 million and 26 million versus 25 million and 26.7 million as of year-end. Early Stage delinquencies remain very low in the 30 to 89 day category. Net charge offs did edge up slightly on the quarter to 395,000 due to a non-performing loan sale, but still equated to an annualized net charge off ratio of only 0.04%. Our allowance for loan loss is now stands at 44.7 million and the coverage of our allowance to non-performing loans is at 181% versus 179% a year ago. Rob?

Thanks, Scot. We're happy to answer any questions you may have.

And thank you sir. We will not begin to question-and-answer session. [Operator Instructions] The first question we have will come from Alex Twerdahl of Sandler O'Neill. Please go ahead.

Hey, good morning guys.

Good morning Alex.

Good morning.

Good morning Alex.

First off, just want to drill in a little bit onto some of the last stuff you're talking about Scot, with bolstering some liquidity in the first quarter with the expectation of increased backlogs and loan growth as the year progresses. What kind of - what gives you the confidence that - I mean, it seems like you really boosted cash a lot expecting stronger loan growth, are you planning to do some additional promotions or adjust rates or kind of what gives you the sort of the confidence that that loan growth will pick up seasonally, it always does in the second quarter, but should we expect more than what we've seen in past years?

Well, as you say, Alex, we are we are seasonal especially in the New York area and we feel the market demand is there. We position ourselves in the first quarter, as Rob and Mike said to provide some additional liquidity and now we're looking to grow. We are seeing the application volume pick up, we are confident that we're going to build the backlog and grow as we move forward. I mean, we're coming off a very good year, as you know Alex. We had a great year last year so to say we're going to do more than we did last year. I certainly wouldn't want to sit here and say that, because we're coming off a very good year or two. But again, we are positioned ourselves to be more aggressive and look to build the backlog and grow as we move forward from here.

Okay and then sort of as that relates to the margin, I think you guys mentioned that the margin you sort of expect more stability in the latter half of the year. Is that just because that that backlog is still building right now and any long growth we've seen in second quarter might come on kind of later in the quarter, whereas the rates on the deposits are going to be there for the whole time.

It's a mix of everything Ales. The backlog is building. Our application volume has been tremendous for the - in the recent past, so that we expect that backlog continue to grow and have a very solid year with regard to loan growth and in any deposits we're putting on the books, we've kept a relatively short leash on, most of what we're thinking percentage wise is six to nine months, so have a shot at that apple later in the year hopefully to bring the cost down and reprice those deposits. So the combination I think is a winner for us.

As you get into that fourth quarter, all the CDs that are coming through are really fully annex at that point, so.

Okay, and then the CD growth that you added in the quarter, is that mostly driven by branch volume and promotions?

Of branch volumes, we have no broker deposits Alex.

Okay. And then, so the expectation is just that the rates across the country just given the shape of the yield curve and the expectation for rate hikes and potential rate reductions over the next couple months implies that a lot of these things as they mature likely will repriced lower. That's really what that's [indiscernible]?

Yeah, that would be the hope and the goal.

Okay. And then just switching gears to talk about expectations a little bit, it seems like the expense guidance has been updated to be at 3% higher than prior guidance, which is pretty typical from what we've seen a lot of community banks. Was that really just - is it mostly just inflation that is driving that higher? Or is it things like the seasonal fermentation and some tax spend and some other enhancements that have to always go into the operations that are kind of pushing that expense number higher as the year progresses.

Certainly cyber security and some of the tech expenses have been pretty heavy, especially for a company our size and some of the smaller too, but there's some inflation built into that. We have a very lean and efficient tech area. I think you know that and we stay pretty focused in that area. So I don't expect that to get out of control. We do have a new teller package we were installing and a couple of other things, a couple of other initiatives in that area. So that might have been a little bit of reasons to pop.

And on the C sells we're not spending. We're spending normal amounts of money, but we're not, - that's not a huge piece of the increase at all.

Okay, thanks for taking all my questions.

Thanks Alex.

Well at this time we're showing no further questions. We'll go ahead and conclude our question-and-answer session. I will now like to turn the conference call back over to Mr. Robert J. McCormick for any closing remarks, sir.

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

All right, thank you, sir and you also have a great day. Again, we thank you all for attending today's presentation. At this time, you may disconnect you lines. Thank you. Take care, everyone.