Good morning, and welcome to the TrustCo Bank Corp’s Fourth Quarter 2017 Earnings Call and Webcast. All participants will be in listen-only mode. [Operator Instructions] After today’s presentation, there will be an opportunity to ask questions. [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 the call and in the risk factors and forward-looking statements section of our annual report on Form 10-K and as updated by our quarterly reports on Form 10-Q. These 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 law. 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 Investors 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 J. McCormick, President and CEO. Please go ahead, sir.

Good morning, everyone. I’m Rob McCormick, President of the bank. Scot Salvador, Mike Ozimek and Kevin Timmons are with me on the call today. We’ll start with a brief summary of the year, then Michael Ozimek, our CFO, will detail the numbers, and Scott will talk about our operations. We had a pretty good year at TrustCo Bank. 2017 was a year with many changes, especially in the second half of the year. You should be hearing that a lot. Year-over-year total deposits were down overall at the bank. The decrease was driven by runoff in the money market and time deposit categories. We had very good growth in the checking category. The bottom line as we did what we had to do with deposits, not chasing the higher cost categories, growing the lower costs customer accounts. Things are slower, but hopefully, longer term, cheaper growth. Loan growth was good in 2017. We ended the year in a very good position with most of the growth coming in the residential mortgage area. Commercial loans were down year-over-year, but that portfolio is much more stable than in the past. Some equity credit lines were down, but we still feel most of that runoff is being captured on our residential mortgage portfolio. The rest of loan category is not a big part of our business. Our efforts seem to have paid off in the form of continued margin expansion to 3.29% that was up 13 basis points year-over-year. We ended 2017 with total assets over $4.9 billion, an increase in shareholders' equity to $458 million and a capital ratio of 9.3%. Net income was $43.1 million in 2017, up from $42.6 million in 2016. This was impacted negatively by $5.1 million as a direct result of the tax change at year-end. Mike…

Thank you, Rob, and good morning, everyone. I will now review TrustCo's financial results for the fourth quarter of 2017. As we noted in our press release, the company saw an increase in net income to $43.1 million for the full year of 2017 compared to $42.6 million for 2016. The year-over-year increase in net income came despite the impact of the revaluation of the Company's deferred tax assets resulting from the recently enacted tax legislation. During the quarter, on December 22, the Tax Cuts and Jobs Act was signed into law, which included a reduction of the federal statutory corporate tax rate from 35% to 21%, effective January 1, 2018. The lower tax rate will have a significant beneficial impact on results going forward but also required a revaluation of the Company's deferred tax assets. As a result, the Company reduced the value of net deferred tax assets by $5.1 million and recorded the reduction as a charge to income tax expense. For 2018, the Company is expecting it’s combined effective tax rate to be approximately 23.5% based on currently known information. This effective rate could be impacted once the tax law changes are fully implemented during 2018. Income before taxes were $76.7 million for the full year of 2017, an increase of 12.4% compared to $68.3 million for 2016. Income before taxes was also at $19.7 million in the fourth quarter of 2017, an increase of 12.9% compared to $17.5 million for the fourth quarter of 2016. Net income for the fourth quarter of 2017 yielded a return on average assets and average equity of 0.60% and 6.3% compared to 0.89% and 9.87% in the fourth of 2016. Now on to changes in the balance sheet. We saw a continued strong loan growth during the fourth quarter of…

Okay. Thanks Mike. Bank's loan growth for the fourth quarter was strong. Overall, total loans increased by $58 million or 1.6%. Year-over-year, they have increased by $206 million or 6%. Virtually all of the $58 million in growth for the full quarter was in the residential portfolio, with commercial loans down just slightly. Mortgage growth in the quarter was spread throughout all our regions. Purchase money business remained solid and that combined with the relatively low level of refinance activity, led to strong net growth. Some equity credit lines declined by $2.5 million, which is offset by a $3.5 million increase in our fixed rate home equity loan product this quarter. Our loan backlog at year-end was solid. It was down from the third quarter, which is normal given the time of the year, but up over 10% from the same point last year. While the first part of the year is typically slower, we are optimistic about posting continued net growth on the quarter. Our current 30-year fixed rate is 3.99%. The recent enacted federal tax laws contains several provisions regarding the deductibility of mortgage interest. However, given our relatively low average loan size and the fact that we are not big originators of jumbo loans, we are not anticipating a significant effect upon our overall loan activity. Our asset quality metrics remain strong. Nonperforming loans were down slightly in both the quarter and the year. Nonperforming assets were up slightly on the quarter and down $1.7 million year-over-year. Charge-offs have reached extremely low levels. For the fourth quarter, the net charge-off of $212,000 equates to a 0.02% annualized net charge-off ratio. Non-performing loans to total loans of 0.67% versus 0.73% last year. And finally, the coverage ratio or allowance for loan losses to total non-performing loans stands at 180%. Bob?

Thanks, Scot. We’re happy to answer any questions that any of you might have.

[Operator Instructions] And our first question comes from Alex Twerdahl of Sandler O’Neill. Please go ahead.

Hey, good morning guys.

Good morning, Alex.

Good morning, Alex.

Good morning, Alex.

Can you just – I joined the call just a couple of minutes late. So I’m sorry if you already addressed this. But Scot, did you give some color on the state of the mortgage pipeline going into 2018?

Yes, Alex. I was saying it’s down at year-end. The pipeline was down from the end of the third quarter, which is normal because of the time of year, but year-over-year we’re up about 10% from where we were last year.

Okay. And are you guys seeing any – we’ve seen a little bit of a rise in the 10-year is not obviously anything to write home about. But have you seen any of that reflect through into pricing on mortgages yet? Or is it still too early?

Still too early.

Okay. What about on the deposit side? Five rate hikes later, you guys have face able to – been able to keep your deposit costs flat, I think, 2 basis points or something like that. Are you seeing any pressures from any parts or any pockets of your market to increase deposit costs faster in 2018 or at all?

There are certain CD categories that have become more competitive, Alex, but overall, no, not a tremendous amount of pressure.

Okay. And are those categories actually drawing in any additional deposits?

I don’t think so. I think they’re handling the maturities. The people that are very aggressive with regard to the pricing appear to be in the – like the 2015 to just shy of two-year mark. And it looks like they’re trying to keep what they have. Personal opinion, I don’t really have any direct knowledge of that.

Okay. I think that’s all my questions right now. Appreciate it. Thank you.

Thank you.

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

Thanks for your interest in our company and have a great day.