Wire Stories

TrustCo Enters Its 120?? Year; Posts Record Earnings; Net Income of $61.5 million up 17.3% over the prior year

GLENVILLE, New York, Jan. 24, 2022 (GLOBE NEWSWIRE) -- TrustCo Bank Corp NY (TrustCo, NASDAQ: TRST) today announced full year 2021 net income of $61.5 million or $3.194 diluted earnings per share, compared to net income of $52.5 million or $2.717 diluted earnings per share for the full year 2020; and net income of $16.2 million or $0.845 diluted earnings per share for the three months ended December 31, 2021, compared to net income of $13.8 million or $0.716 diluted earnings per share for the three months ended December 31, 2020. For all periods presented, share and per share information has been adjusted for the 1 for 5 reverse stock split which occurred on May 28, 2021.

Overview
Robert J. McCormick, Chairman, President and Chief Executive Officer noted, �All of the members of the Trustco Bank family are justifiably proud of our history as we enter our 120??�year. We are very pleased to embark on that celebration with the momentum of a great year in 2021, which was marked by record earnings and rock-solid capital and liquidity. Also fueling our momentum is the increase in the amount of our dividend announced last quarter and our further recognition as an award-winning bank by local and national media outlets, consumer surveys, and the bank rating firm Bauer, which continues to award Trustco Bank its highest five-star rating.�

The Company traces its roots back to the first branch of the Schenectady Trust Company, which was located on State Street in downtown Schenectady, New York in 1902. The institution was founded by prominent local business people and executives of General Electric Company, which also has deep roots in the �Electric City.� The second and third branches of the bank were on Crane Street, in Schenectady�s Mont Pleasant neighborhood, and at the corner of State Street and Brandywine Avenue in the city. Both of these locations are still Trustco Bank branches today. Since then, the franchise has grown to a presence in five states, nearly 150 branch locations, and $6.2 billion in total assets. Record earnings of $61.5 million in 2021 is a testament to the vitality of the current enterprise.

Details
Average loans were up $185.3 million or 4.4% in the fourth quarter 2021 over the same period in 2020. Average residential loans, our primary lending focus, were up $223.3 million, or 5.9%, in the fourth quarter 2021 over the same period in 2020. As of December 31, 2021, there were no loans in deferral. Additionally, the Bank had funded 663 Paycheck Protection Program (�PPP�) loans totaling $46 million in 2020, and an additional 344 loans totaling $23 million in 2021. As of December 31, 2021, 190 PPP loans totaling $10 million remain outstanding. Average deposits were up $297.5 million or 6.0% for the fourth quarter 2021 over the same period a year earlier. The increase in deposits during the 2021 fourth quarter was the result of a $525.8 million or 14.4% increase in total average core deposit accounts, which consist of interest bearing and non-interest bearing checking, savings and money market deposits, offset by a decrease in average time deposits of $228.3 million or 17.8%, for the fourth quarter 2021 over the same period in 2020. Within the core deposits, checking balances were up $270.0 million or 16.1% (including interest bearing and non-interest bearing checking balances), money market balances were up $52.9 million or 7.5%, and savings balances were up $202.9 million or 16.1%. We believe the increase in core deposits continues to reflect the desire of customers to have additional funds in the safety and security offered by TrustCo�s long history of conservative banking. As we move forward, the objective is to encourage customers to retain these additional funds in the expanded product offerings of the Bank through aggressive marketing and product differentiation.

The cost of interest bearing liabilities decreased to 0.13% in the fourth quarter 2021 from 0.35% in the fourth quarter 2020. A significant portion of our CD portfolio (time deposits) repriced during the last year, which resulted in lower rates due to ongoing market conditions. The net interest margin for the fourth quarter 2021 was 2.69%, down 10 basis points from 2.79% in the fourth quarter of 2020. Net interest income (TE) increased by 2.8% or $1.1 million over the same period last year.

TrustCo continued to demonstrate its ability to grow shareholders� equity as average equity was up $26.4 million or 4.7% in the fourth quarter of 2021 compared to the same period in 2020. Return on average assets and return on average equity for the fourth quarter 2021 were 1.05% and 10.92%, respectively, compared to 0.95% and 9.75% for the fourth quarter 2020. Improving efficiencies to reduce costs continues to remain a key area of focus. As a result, full time equivalent employees decreased from the prior year partially due to a strategic realignment and the impact of COVID-19 on the labor market. Additionally, on May 28, 2021, the reverse split of the Company�s Common Stock at a ratio of 1 for 5 was implemented on the Nasdaq Global Select Market. All prior period share and per share information, and common stock and surplus amounts have been split adjusted. The board of directors believes that the higher per share trading price that resulted from the Reverse Stock Split will generate greater investor interest in TrustCo and improve the marketability of the shares to a broader range of investors. The board of directors also believes that the Reverse Stock Split has resulted in a number of our shares of outstanding common stock that is similar to the number of outstanding shares of common stock of comparable financial institutions.

Asset quality and loan loss reserve measures have continued to improve as a result of low levels of nonperforming assets and chargeoffs. Nonperforming loans (NPLs) were $18.8 million at December 31, 2021, compared to $21.1 million at December 31, 2020. NPLs were 0.42% and 0.50% of total loans at December 31, 2021 and 2020, respectively. The coverage ratio, or allowance for loan losses to NPLs, was 236.0% at December 31, 2021, compared to 235.2% at December 31, 2020. Nonperforming assets (NPAs) were $19.1 million at December 31, 2021, compared to $21.6 million at December 31, 2020. The ratio of allowance for loan losses to total loans was 1.00% as of December 31, 2021 compared to 1.17% as of December 31, 2020. The allowance for loan losses was $44.3 million at December 31, 2021, compared to $49.6 million at December 31, 2020. During 2020, management increased certain allowance qualitative factors based on its assessment of the impact of the pandemic on local, national, and global economic conditions as well as the perceived risks inherent in specific industries and credit characteristics. In light of an improving economic environment in 2021 and based on the approach utilized in the prior year the company adjusted the pandemic specific provision during the second half of 2021. Provision for loan losses for the fourth quarter of 2021 was a credit of $3.0 million compared to a provision for loan losses for the fourth quarter of 2020 of $600 thousand. The decrease from the prior year is due to the sustained improvement in asset quality trends and economic conditions during the fourth quarter. The Company had previously elected to delay its adoption of Accounting Standards Update 2016-13, Financial Instruments � Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (�CECL�), as provided by the Coronavirus Aid, Relief, and Economic Security Act (�CARES Act�) until the date on which the National Emergency concerning COVID-19 was terminated or December 31, 2020, whichever occurred first. The December 31, 2020 adoption date under the CARES Act was extended to January 1, 2022 as a part of the COVID-19 relief legislation, which became law in December 2020, and therefore the Company adopted CECL on January 1, 2022.

Net chargeoffs for the fourth quarter 2021 were $83 thousand versus net chargeoffs in the fourth quarter 2020 of $128 thousand. The annualized net chargeoffs ratio was 0.01% for both the fourth quarter 2021 and 2020.

At December 31, 2021 the equity to asset ratio was 9.70%, compared to 9.63% at December 31, 2020. Book value per share at September 30, 2021 was $31.28, up 6.2% compared to $29.46 a year earlier.

TrustCo Bank Corp NY is a $6.2 billion savings and loan holding company and through its subsidiary, Trustco Bank, operated 147 offices in New York, New Jersey, Vermont, Massachusetts, and Florida at December 31, 2021.

In addition, the Bank�s Financial Services Department offers a full range of investment services, retirement planning and trust and estate administration services. The common shares of TrustCo are traded on the NASDAQ Global Select Market under the symbol TRST.

Those wishing to participate in the call may dial toll-free for the United States at 1-844-200-6205, for Canada at 1-833-950-0062, and all other locations at 1-929-526-1599, Access code 097207. A replay of the call will be available for thirty days by dialing toll-free for the United States at 1-866-813-9403, for Canada at 1-226-828-7578, and all other locations at +44-204-525-0658, Access code 124698. The call will also be audio webcast at https://services.choruscall.com/links/trst220125.html, and will be available for one year.

Safe Harbor Statement
All statements in this news release that are not historical are forward-looking statements within the meaning of the Securities Exchange Act of 1934, as amended. Forward-looking statements can be identified by words such as "anticipate," "intend," "plan," "goal," "seek," "believe," "project," "estimate," "expect," "strategy," "future," "likely," "may," "should," "will" and similar references to future periods. Examples of forward-looking statements include, among others, statements we make regarding our expectations for our performance during 2021, including our expectations regarding the effects of COVID-19 on our financial results and our ability to assist our customers in addressing the effects of COVID-19, our ability to retain customers, the impact of Federal Reserve actions regarding interest rates and the growth of loans and deposits throughout our branch network and our ability to capitalize on economic changes in the areas in which we operate. Such forward-looking statements are subject to factors that could cause actual results to differ materially for TrustCo from those discussed, and many of the risks and uncertainties are heightened by or may, in the future, be heightened by the effects of the COVID-19 pandemic. TrustCo wishes to caution readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. The following important factors, among others, in some cases have affected and in the future could affect TrustCo�s actual results and could cause TrustCo�s actual financial performance to differ materially from that expressed in any forward-looking statement: the effect of the COVID-19 pandemic on our business, financial condition, liquidity and results of operations; the impact of the actions taken by governmental authorities to contain COVID-19 or address the impact of COVID-19 on the economy, and the effect of all of such items on our operations, liquidity and capital position, and on the financial condition of our borrowers and other customers; future business strategies related to the implementation of CECL; credit risks and risks from concentrations (by geographic area and by loan product) within our loan portfolio; changes in local market areas and general business and economic trends, as well as changes in consumer spending and savings habits; and our ability to assess and react effectively to such changes; our ability to continue to originate a significant volume of one-to-four family mortgage loans in our market areas; our ability to continue to maintain noninterest expense and other overhead costs at reasonable levels relative to income; our ability to make accurate assumptions and judgments regarding the credit risks associated with lending and investing activities; the effects of, and changes in, trade, monetary and fiscal policies and laws, including interest rate policies of the Federal Reserve Board, inflation, interest rates, market and monetary fluctuations; changes in and uncertainty related to benchmark interest rates used to price loans and deposits; restrictions or conditions imposed by our regulators on our operations that may make it more difficult for us to achieve our goals; the future earnings and capital levels of us and Trustco Bank and the continued receipt of approvals from our primary federal banking regulators under regulatory rules to distribute capital to TrustCo, which could affect our ability to pay dividends; results of supervisory monitoring or examinations of Trustco Bank and TrustCo by our respective regulators; adverse conditions in the securities markets that lead to impairment in the value of securities in our investment portfolio; the perceived overall value of our products and services by users, including in comparison to competitors� products and services and the willingness of current and prospective customers to substitute competitors� products and services for our products and services; changes in consumer spending, borrowing and saving habits; the effect of changes in financial services laws and regulations and the impact of other governmental initiatives affecting the financial services industry; changes in management personnel; real estate and collateral values; changes in accounting policies and practices, as may be adopted by the bank regulatory agencies, the FASB or PCAOB; disruptions, security breaches, or other adverse events affecting the third-party vendors who perform several of our critical processing functions; technological changes and electronic, cyber and physical security breaches; our success at managing the risks involved in the foregoing and managing our business; and other risks and uncertainties under the heading �Risk Factors� in our most recent annual report on Form 10-K and, if any, in our subsequent quarterly reports on Form 10-Q or other securities filings.

TRUSTCO BANK CORP NY
GLENVILLE, NY
FINANCIAL HIGHLIGHTS
(dollars in thousands, except per share data)
(Unaudited)
Three months ended
12/31/2021 9/30/2021 12/31/2020
Summary of operations
�� Net interest income (TE) $ 40,292 39,888 39,182
�� (Credit) Provision for loan losses (3,000 ) (2,800 ) 600
�� Noninterest income 4,526 4,295 4,069
�� Noninterest expense 26,190 24,697 24,830
�� Net income 16,241 16,762 13,814
Per share (4)
�� Net income per share:
������ - Basic $ 0.845 0.871 0.716
������ - Diluted 0.845 0.871 0.716
�� Cash dividends 0.350 0.341 0.341
�� Book value at period end 31.28 30.53 29.46
�� Market price at period end 33.31 31.97 33.35
At period end
�� Full time equivalent employees 759 743 778
�� Full service banking offices 147 147 148
Performance ratios
�� Return on average assets 1.05 % 1.08 0.95
�� Return on average equity 10.92 11.40 9.75
�� Efficiency (1) 58.50 55.82 57.31
�� Net interest spread (TE) 2.67 2.62 2.72
�� Net interest margin (TE) 2.69 2.65 2.79
�� Dividend payout ratio 41.42 39.13 47.55
Capital ratios at period end
�� Consolidated tangible equity to tangible assets (2) 9.69 % 9.55 9.62
�� Consolidated equity to assets 9.70 % 9.56 9.63
Asset quality analysis at period end
�� Nonperforming loans to total loans 0.42 0.46 0.50
�� Nonperforming assets to total assets 0.31 0.34 0.37
�� Allowance for loan losses to total loans 1.00 1.08 1.17
�� Coverage ratio (3) 2.4x 2.3x 2.4x
(1)� Non-GAAP measure; calculated as noninterest expense (excluding ORE income/expense) divided by taxable
������ equivalent net interest income plus noninterest income. See Non-GAAP Financial Measures Reconciliation.
(2)� Non-GAAP measure; calculated as total equity less $553 of intangible assets divided by total assets less�
������ $553 of intangible assets.� See Non-GAAP Financial Measures Reconciliation.
(3)� Calculated as allowance for loan losses divided by total nonperforming loans.
(4)� All periods presented have been adjusted for the 1 for 5 reverse stock split which occurred on May 28, 2021.��
TE = Taxable equivalent

FINANCIAL HIGHLIGHTS, Continued
(dollars in thousands, except per share data)
(Unaudited)
Year ended
12/31/21 12/31/20
Summary of operations
�� Net interest income (TE) $ 160,409 153,583
�� (Credit) Provision for loan losses (5,450 ) 5,600
�� Net gain on securities transactions - 1,155
�� Noninterest income, excluding net gain on securities transactions 17,937 16,015
�� Noninterest expense 101,662 95,704
�� Net income 61,519 52,452
Per share (2)
�� Net income per share:
������ - Basic $ 3.194 2.718
������ - Diluted 3.194 2.717
�� Cash dividends 1.372 1.363
�� Book value at period end 31.28 29.46
�� Market price at period end 33.31 33.35
Performance ratios
�� Return on average assets 1.01 0.94
�� Return on average equity 10.61 9.47
�� Efficiency (1) 56.90 56.38
�� Net interest spread (TE) 2.67 2.73
�� Net interest margin (TE) 2.71 2.84
�� Dividend payout ratio 42.95 50.12
(1)� Calculated as noninterest expense (excluding ORE income/expense) divided by taxable equivalent net
������ interest income plus noninterest income.� See Non-GAAP Financial Measures Reconciliation.��
(2)� All periods presented have been adjusted for the 1 for 5 reverse stock split which occurred on May 28, 2021.
�����
TE = Taxable equivalent.

CONSOLIDATED STATEMENTS OF INCOME
(dollars in thousands, except per share data)
(Unaudited)
Three months ended
12/31/2021 9/30/2021 6/30/2021 3/31/2021 12/31/2020
Interest and dividend income:����������������������������������������
�� Interest and fees on loans $ 39,655 39,488 39,808 40,217 40,906
�� Interest and dividends on securities available for sale:�������������������������������������
������ U. S. government sponsored enterprises 76 91 97 50 27
������ State and political subdivisions���������������������� - 1 - 1 2
������ Mortgage-backed securities and collateralized mortgage
��������� obligations - residential 1,073 1,038 1,167 1,237 1,172
������ Corporate bonds 206 220 323 316 349
������ Small Business Administration - guaranteed
��������� participation securities 165 181 193 206 212
������ Other securities 4 5 5 6 7
�� Total interest and dividends on securities available for sale 1,524 1,536 1,785 1,816 1,769
Interest on held to maturity securities:�������������
������ Mortgage-backed securities and collateralized mortgage
��������� obligations - residential 97 104 111 123 129
�� Total interest on held to maturity securities 97 104 111 123 129
Federal Home Loan Bank stock 62 64 65 69 70
Interest on federal funds sold and other short-term investments 432 470 286 270 246
�� Total interest income 41,770 41,662 42,055 42,495 43,120
Interest expense:��������������������������������������������
�� Interest on deposits:���������������������������������������
������ Interest-bearing checking 42 38 46 52 51
������ Savings 149 154 162 159 156
������ Money market deposit accounts 201 202 236 283 447
������ Time deposits 865 1,149 1,261 1,666 3,053
�� Interest on short-term borrowings 221 232 228 228 232
�� Total interest expense 1,478 1,775 1,933 2,388 3,939
�� Net interest income 40,292 39,887 40,122 40,107 39,181
�� Less: (Credit) Provision for loan losses (3,000 ) (2,800 ) - 350 600
�� Net interest income after provision for loan losses��������������������� 43,292 42,687 40,122 39,757 38,581
Noninterest income:
�� Trustco Financial Services income 1,766 1,558 1,999 2,035 1,527
�� Fees for services to customers 2,578 2,531 2,486 2,204 2,365
�� Other 182 206 203 189 177
����� Total noninterest income 4,526 4,295 4,688 4,428 4,069
Noninterest expenses:��
�� Salaries and employee benefits 11,984 11,909 12,403 12,425 11,727
�� Net occupancy expense 4,569 4,259 4,328 4,586 4,551
�� Equipment expense 1,758 1,628 1,600 1,631 1,621
�� Professional services 1,579 1,483 1,614 1,432 1,644
�� Outsourced services 1,950 2,015 2,169 2,250 1,925
�� Advertising expense 762 310 549 354 527
�� FDIC and other insurance 780 746 777 707 657
�� Other real estate (income) expense, net (28 ) 32 (60 ) 239 45
�� Other 2,836 2,315 2,060 1,711 2,133
����� Total noninterest expenses 26,190 24,697 25,440 25,335 24,830
Income before taxes 21,628 22,285 19,370 18,850 17,820
Income taxes 5,387 5,523 4,937 4,767 4,006
Net income $ 16,241 16,762 14,433 14,083 13,814
Net income per common share (1):����������������������������������
� - Basic $ 0.845 0.871 0.749 0.730 0.716
� - Diluted 0.845 0.871 0.748 0.730 0.716
Average basic shares (in thousands) (1) 19,216 19,249 19,281 19,287 19,287
Average diluted shares (in thousands) (1) 19,218 19,252 19,290 19,293 19,288
Note:� Taxable equivalent net interest income $ 40,292 39,888 40,122 40,107 39,182
(1)� All periods presented have been adjusted for the 1 for 5 reverse stock split which occurred on May 28, 2021.

CONSOLIDATED STATEMENTS OF INCOME, Continued
(dollars in thousands, except per share data)
(Unaudited)
Year ended
12/31/21 12/31/20
Interest and dividend income:����������������������������������������
� Interest and fees on loans $ 159,168 165,964
� Interest and dividends on securities available for sale:�������������������������������������
���� U. S. government sponsored enterprises 314 568
���� State and political subdivisions���������������������� 2 6
���� Mortgage-backed securities and collateralized mortgage
������� obligations - residential 4,515 6,131
���� Corporate bonds 1,065 1,721
���� Small Business Administration - guaranteed
������� participation securities 745 902
���� Other securities 20 23
������� Total interest and dividends on securities available for sale 6,661 9,351
Interest on held to maturity securities:�������������
������ Mortgage-backed securities-residential 435 604
�� Total interest on held to maturity securities 435 604
Federal Reserve Bank and Federal Home Loan Bank stock 260 421
Interest on federal funds sold and other short-term investments 1,458 1,948
�� Total interest income 167,982 178,288
Interest expense:��������������������������������������������
�� Interest on deposits:���������������������������������������
������ Interest-bearing checking 178 148
������ Savings 624 716
������ Money market deposit accounts 922 3,042
������ Time deposits 4,941 19,792
�� Interest on short-term borrowings 909 1,010
�� Total interest expense 7,574 24,708
�� Net interest income 160,408 153,580
�� Less: (Credit) Provision for loan losses (5,450 ) 5,600
�� Net interest income after provision for loan losses��������������������� 165,858 147,980
Noninterest income:
�� Trustco Financial Services income 7,358 6,279
�� Fees for services to customers 9,799 8,779
�� Net gain on securities transactions - 1,155
�� Other 780 957
����� Total noninterest income 17,937 17,170
Noninterest expenses:��
�� Salaries and employee benefits 48,721 45,647
�� Net occupancy expense 17,742 17,519
�� Equipment expense 6,617 6,636
�� Professional services 6,108 5,618
�� Outsourced services 8,384 7,750
�� Advertising expense 1,975 1,921
�� FDIC and other insurance 3,010 2,220
�� Other real estate expense, net 183 92
�� Other 8,922 8,301
����� Total noninterest expenses 101,662 95,704
Income before taxes 82,133 69,446
Income taxes 20,614 16,994
Net income $ 61,519 52,452
Net income per common share (1):����������������������������������
� - Basic $ 3.194 2.718
� - Diluted 3.194 2.717
Average basic shares (in thousands) (1) 19,259 19,301
Average diluted shares (in thousands) (1) 19,263 19,303
Note:� Taxable equivalent net interest income $ 160,409 153,583
(1)� All periods presented have been adjusted for the 1 for 5 reverse stock split which occurred on May 28, 2021.

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(dollars in thousands)
(Unaudited)
��������������������������������������������������������� 12/31/2021 9/30/2021 6/30/2021 3/31/2021 12/31/2020
ASSETS:
���������������������������������������������������������������������������������
Cash and due from banks $ 48,357 45,486 47,766 45,493 47,196
Federal funds sold and other short term investments 1,171,113 1,147,853 1,134,622 1,094,880 1,059,903
������� Total cash and cash equivalents 1,219,470 1,193,339 1,182,388 1,140,373 1,107,099
Securities available for sale:
�� U. S. government sponsored enterprises 59,179 59,749 74,579 74,465 19,968
�� States and political subdivisions 41 48 48 48 103
�� Mortgage-backed securities and collateralized mortgage
����� obligations - residential 270,798 293,585 315,656 348,317 316,158
�� Small Business Administration - guaranteed
����� participation securities 31,674 34,569 37,199 39,232 42,217
�� Corporate bonds 45,337 45,915 54,647 64,839 59,939
�� Other securities 684 686 686 686 686
������� Total securities available for sale 407,713 434,552 482,815 527,587 439,071
Held to maturity securities:
�� Mortgage-backed securities and collateralized mortgage
����� obligations-residential 9,923 10,701 11,665 12,729 13,824
������� Total held to maturity securities 9,923 10,701 11,665 12,729 13,824
Federal Home Loan Bank stock 5,604 5,604 5,604 5,506 5,506
Loans:
�� Commercial 200,200 204,679 214,164 217,021 212,492
�� Residential mortgage loans 3,998,187 3,951,285 3,892,351 3,807,837 3,780,167
�� Home equity line of credit 230,976 231,314 234,214 235,644 242,194
�� Installment loans 9,416 9,451 8,638 8,670 9,617
Loans, net of deferred net costs 4,438,779 4,396,729 4,349,367 4,269,172 4,244,470
Less: Allowance for loan losses 44,267 47,350 50,155 49,991 49,595
�� Net loans 4,394,512 4,349,379 4,299,212 4,219,181 4,194,875
Bank premises and equipment, net 33,027 33,233 33,691 34,012 34,412
Operating lease right-of-use assets 48,090 45,836 45,825 46,614 47,885
Other assets 78,207 62,191 61,378 60,455 59,124
������� Total assets $ 6,196,546 6,134,835 6,122,578 6,046,457 5,901,796
��������������������������������������������������������������������������������
LIABILITIES:
Deposits:
�� Demand $ 794,878 790,663 765,193 718,343 652,756
�� Interest-bearing checking 1,191,304 1,148,593 1,152,901 1,141,595 1,086,558
�� Savings accounts 1,504,554 1,433,130 1,409,556 1,362,141 1,285,501
�� Money market deposit accounts 782,079 744,051 732,963 719,580 716,005
�� Time deposits 995,314 1,124,581 1,169,907 1,231,263 1,296,373
����� Total deposits 5,268,129 5,241,018 5,230,520 5,172,922 5,037,193
Short-term borrowings 244,686 230,770 237,791 229,950 214,755
Operating lease liabilities 52,720 50,515 50,586 51,449 52,784
Accrued expenses and other liabilities 29,883 25,849 25,088 21,105 28,903
������� Total liabilities 5,595,418 5,548,152 5,543,985 5,475,426 5,333,635
SHAREHOLDERS' EQUITY:
Capital stock (1) 20,046 20,042 20,041 20,044 20,041
Surplus (1) 256,661 256,565 256,536 256,674 256,606
Undivided profits 349,056 339,554 329,350 321,486 313,974
Accumulated other comprehensive income, net of tax 12,147 7,304 7,840 7,268 11,936
Treasury stock at cost (36,782 ) (36,782 ) (35,174 ) (34,441 ) (34,396 )
������� Total shareholders' equity 601,128 586,683 578,593 571,031 568,161
������� Total liabilities and shareholders' equity $ 6,196,546 6,134,835 6,122,578 6,046,457 5,901,796
Outstanding shares (in thousands) (1) 19,220 19,216 19,265 19,288 19,287
(1)� All periods presented have been adjusted for the 1 for 5 reverse stock split which occurred on May 28, 2021.

NONPERFORMING ASSETS
(dollars in thousands)
(Unaudited)
12/31/2021 9/30/2021 6/30/2021 3/31/2021 12/31/2020
Nonperforming Assets
�� New York and other states*
�� Loans in nonaccrual status:
������ Commercial $ 112 176 150 125 452
������ Real estate mortgage - 1 to 4 family 16,574 17,878 18,466 19,826 19,379
������ Installment 37 32 43 32 43
�� Total non-accrual loans 16,723 18,086 18,659 19,983 19,874
�� Other nonperforming real estate mortgages - 1 to 4 family 17 19 20 22 23
�� Total nonperforming loans 16,740 18,105 18,679 20,005 19,897
�� Other real estate owned 362 511 251 420 541
�� Total nonperforming assets $ 17,102 18,616 18,930 20,425 20,438
�� Florida
�� Loans in nonaccrual status:
������ Commercial $ - - - - -
������ Real estate mortgage - 1 to 4 family 2,016 2,066 2,142 1,626 1,187
������ Installment - - - - -
�� Total non-accrual loans 2,016 2,066 2,142 1,626 1,187
�� Other nonperforming real estate mortgages - 1 to 4 family - - - - -
�� Total nonperforming loans 2,016 2,066 2,142 1,626 1,187
�� Other real estate owned - - - - -
�� Total nonperforming assets $ 2,016 2,066 2,142 1,626 1,187
�� Total
�� Loans in nonaccrual status:
������ Commercial $ 112 176 150 125 452
������ Real estate mortgage - 1 to 4 family 18,590 19,944 20,608 21,452 20,566
������ Installment 37 32 43 32 43
�� Total non-accrual loans 18,739 20,152 20,801 21,609 21,061
�� Other nonperforming real estate mortgages - 1 to 4 family 17 19 20 22 23
�� Total nonperforming loans 18,756 20,171 20,821 21,631 21,084
�� Other real estate owned 362 511 251 420 541
�� Total nonperforming assets $ 19,118 20,682 21,072 22,051 21,625
Quarterly Net (Recoveries) Chargeoffs
�� New York and other states*
�� Commercial $ - 30 - (32 ) 32
�� Real estate mortgage - 1 to 4 family 52 (39 ) (136 ) (2 ) (27 )
�� Installment 31 14 (27 ) (14 ) 109
����� Total net chargeoffs (recoveries) $ 83 5 (163 ) (48 ) 114
�� Florida
�� Commercial $ - - - - -
�� Real estate mortgage - 1 to 4 family - - (1 ) - (1 )
�� Installment - - - 2 15
����� Total net chargeoffs (recoveries) $ - - (1 ) 2 14
�� Total
�� Commercial $ - 30 - (32 ) 32
�� Real estate mortgage - 1 to 4 family 52 (39 ) (137 ) (2 ) (28 )
�� Installment 31 14 (27 ) (12 ) 124
����� Total net chargeoffs (recoveries) $ 83 5 (164 ) (46 ) 128
Asset Quality Ratios
Total nonperforming loans (1) $ 18,756 20,171 20,821 21,631 21,084
Total nonperforming assets (1) 19,118 20,682 21,072 22,051 21,625
Total net chargeoffs (recoveries) (2) 83 5 (164 ) (46 ) 128
Allowance for loan losses (1) 44,267 47,350 50,155 49,991 49,595
Nonperforming loans to total loans 0.42% 0.46% 0.48% 0.51% 0.50%
Nonperforming assets to total assets 0.31% 0.34% 0.34% 0.36% 0.37%
Allowance for loan losses to total loans 1.00% 1.08% 1.15% 1.17% 1.17%
Coverage ratio (1) 236.0% 234.7% 240.9% 231.1% 235.2%
Annualized net chargeoffs (recoveries) to average loans (2) 0.01% 0.00% -0.02% 0.00% 0.01%
Allowance for loan losses to annualized net chargeoffs (recoveries) (2) 133.3x 2367.5x N/A N/A 96.9x
* Includes New York, New Jersey, Vermont and Massachusetts.
(1)� At period-end
(2)� For the period ended

DISTRIBUTION OF ASSETS, LIABILITIES AND SHAREHOLDERS' EQUITY -
INTEREST RATES AND INTEREST DIFFERENTIAL
(dollars in thousands)
(Unaudited) Three months ended Three months ended
December 31, 2021 December 31, 2020
Average Interest Average Average Interest Average
Balance Rate Balance Rate
Assets
Securities available for sale:
U. S. government sponsored enterprises $ 59,975 76 0.51 % $ 25,761 27 0.42 %
Mortgage backed securities and collateralized mortgage
obligations - residential 279,472 1,073 1.54 314,022 1,172 1.49
State and political subdivisions 46 - - 108 3 7.89
Corporate bonds 45,858 206 1.79 64,534 349 2.17
Small Business Administration - guaranteed
participation securities 31,903 165 2.07 41,562 212 2.05
Other 680 4 2.35 685 7 4.09
Total securities available for sale 417,934 1,524 1.46 446,672 1,770 1.59
Federal funds sold and other short-term Investments 1,123,276 432 0.15 916,198 246 0.11
Held to maturity securities:
Mortgage backed securities and collateralized mortgage
obligations - residential 10,311 97 3.76 14,406 129 3.58
Total held to maturity securities 10,311 97 3.76 14,406 129 3.58
Federal Reserve Bank and Federal Home Loan Bank stock 5,604 62 4.43 5,506 70 5.09
Commercial loans 202,092 2,704 5.35 224,838 3,009 5.35
Residential mortgage loans 3,979,645 34,602 3.48 3,756,304 35,368 3.77
Home equity lines of credit 230,408 2,192 3.77 245,401 2,361 3.83
Installment loans 9,068 157 6.87 9,416 168 7.09
Loans, net of unearned income 4,421,213 39,655 3.59 4,235,959 40,906 3.86
Total interest earning assets 5,978,338 41,770 2.79 5,618,741 43,121 3.07
Allowance for loan losses (47,379 ) (49,426 )
Cash & non-interest earning assets 197,382 201,371
Total assets $ 6,128,341 $ 5,770,686
Liabilities and shareholders' equity
Deposits:
Interest bearing checking accounts $ 1,151,704 42 0.01 % $ 1,036,808 51 0.02 %
Money market accounts 763,053 201 0.10 710,105 447 0.25
Savings 1,461,568 149 0.04 1,258,666 156 0.05
Time deposits 1,055,792 865 0.32 1,284,075 3,053 0.95
Total interest bearing deposits 4,432,117 1,257 0.11 4,289,654 3,707 0.34
Short-term borrowings 233,829 221 0.38 200,028 232 0.46
Total interest bearing liabilities 4,665,946 1,478 0.13 4,489,682 3,939 0.35
Demand deposits 795,258 640,190
Other liabilities 77,165 77,197
Shareholders' equity 589,972 563,617
Total liabilities and shareholders' equity $ 6,128,341 $ 5,770,686
Net interest income, tax equivalent 40,292 39,182
Net interest spread 2.67 % 2.72 %
Net interest margin (net interest income to
total interest earning assets) 2.69 % 2.79 %
Tax equivalent adjustment - (1)
Net interest income 40,292 39,181

DISTRIBUTION OF ASSETS, LIABILITIES AND SHAREHOLDERS' EQUITY -
INTEREST RATES AND INTEREST DIFFERENTIAL, Continued
(dollars in thousands)
(Unaudited) Year ended Year ended
December 31, 2021 December 31, 2020
Average Interest Average Average Interest Average
Balance Rate Balance Rate
Assets
Securities available for sale:
�� U. S. government sponsored enterprises $ 63,743 314 0.49 % $ 38,508 568 1.48 %
�� Mortgage backed securities and collateralized mortgage
����� obligations - residential 308,777 4,515 1.46 333,093 6,131 1.84
�� State and political subdivisions 48 3 6.56 111 9 7.82
�� Corporate bonds 53,699 1,065 1.98 50,982 1,721 3.38
�� Small Business Administration - guaranteed
����� participation securities 35,723 745 2.09 44,379 902 2.03
�� Other 685 20 2.92 686 23 3.35
��������� Total securities available for sale 462,675 6,662 1.44 467,759 9,354 2.00
Federal funds sold and other short-term Investments 1,111,257 1,458 0.13 748,085 1,948 0.26
Held to maturity securities:
�� Mortgage backed securities and collateralized mortgage
����� obligations - residential 11,733 435 3.71 16,376 604 3.69
��������� Total held to maturity securities 11,733 435 3.71 16,376 604 3.69
Federal Reserve Bank and Federal Home Loan Bank stock 5,578 260 4.66 7,381 421 5.70
Commercial loans 210,145 10,907 5.19 219,328 10,788 4.92
Residential mortgage loans 3,884,336 138,821 3.57 3,678,536 144,212 3.92
Home equity lines of credit 233,628 8,814 3.77 255,583 10,259 4.01
Installment loans 8,725 626 7.17 9,952 705 7.08
Loans, net of unearned income 4,336,834 159,168 3.67 4,163,399 165,964 3.99
��������� Total interest earning assets 5,928,077 167,983 2.83 5,403,000 178,291 3.30
Allowance for loan losses (49,421 ) (47,330 )
Cash & non-interest earning assets 196,825 197,966
Total assets $ 6,075,481 $ 5,553,636
Liabilities and shareholders' equity
Deposits:
� Interest bearing checking accounts $ 1,134,702 178 0.02 % $ 971,385 148 0.02 %
� Money market accounts 739,139 922 0.12 662,107 3,042 0.46
� Savings 1,397,432 624 0.04 1,191,532 716 0.06
� Time deposits 1,166,963 4,941 0.42 1,350,163 19,792 1.47
�� Total interest bearing deposits 4,438,236 6,665 0.15 4,175,187 23,698 0.57
Short-term borrowings 232,815 909 0.39 180,065 1,010 0.56
�� Total interest bearing liabilities 4,671,051 7,574 0.16 4,355,252 24,708 0.57
Demand deposits 750,111 567,265
Other liabilities 74,396 77,487
Shareholders' equity 579,923 553,632
Total liabilities and shareholders' equity $ 6,075,481 $ 5,553,636
Net interest income, tax equivalent 160,409 153,583
Net interest spread 2.67 % 2.73 %
Net interest margin (net interest income to
total interest earning assets) 2.71 % 2.84 %
Tax equivalent adjustment (1 ) (3 )
Net interest income� 160,408 153,580

Non-GAAP Financial Measures Reconciliation

Tangible equity as a percentage of tangible assets at period end is a non-GAAP financial measure derived from GAAP-based amounts. We calculate tangible equity and tangible assets by excluding the balance of intangible assets from shareholders� equity and total assets, respectively. We calculate tangible equity as a percentage of tangible assets at period end by dividing tangible equity by tangible assets at period end. We believe that this is consistent with the treatment by bank regulatory agencies, which exclude intangible assets from the calculation of risk-based capital ratios.

The efficiency ratio is a non-GAAP measure of expense control relative to revenue from net interest income and fee income. We calculate the efficiency ratio by dividing total noninterest expenses as determined under GAAP, but excluding other real estate expense, net, by net interest income (fully taxable equivalent) and total noninterest income as determined under GAAP, but excluding net gains on the sale of securities and other non-routine items from this calculation. We believe that this provides a reasonable measure of primary banking expenses relative to primary banking revenue.

We believe that these non-GAAP financial measures provide information that is important to investors and that is useful in understanding our financial results. Our management internally assesses our performance based, in part, on these measures. However, these non-GAAP financial measures are supplemental and not a substitute for an analysis based on GAAP measures. As other companies may use different calculations for these measures, this presentation may not be comparable to other similarly titled measures reported by other companies. A reconciliation of the non-GAAP measures of tangible common equity, tangible book value per share, efficiency ratio, net income and net income per share to the underlying GAAP numbers is set forth below.

NON-GAAP FINANCIAL MEASURES RECONCILIATION
(dollars in thousands, except per share amounts)
(Unaudited)
12/31/2021 9/30/2021 12/31/2020
Tangible Book Value Per Share
Equity (GAAP) $������ 601,128 586,683 568,161
Less: Intangible assets 553 553 553
�� Tangible equity (Non-GAAP) 600,575 586,130 567,608
Shares outstanding (1) 19,220 19,216 19,287
Tangible book value per share (1) 31.25 30.50 29.43
Book value per share (1) 31.28 30.53 29.46
Tangible Equity to Tangible Assets
Total Assets (GAAP) $ 6,196,546 6,134,835 5,901,796
Less: Intangible assets 553 553 553
�� Tangible assets (Non-GAAP) 6,195,993 6,134,282 5,901,243
Tangible Equity to Tangible Assets (Non-GAAP) 9.69% 9.55% 9.62%
Equity to Assets (GAAP) 9.70% 9.56% 9.63%
Three months ended Year ended
Efficiency Ratio 12/31/2021 9/30/2021 12/31/2020 12/31/2021 12/31/2020
Net interest income $ 40,292 39,887 39,181 $ 160,408 153,580
Taxable equivalent adjustment - 1 1 1 3
Net interest income (fully taxable equivalent) (Non-GAAP) 40,292 39,888 39,182 160,409 153,583
Non-interest income (GAAP) 4,526 4,295 4,069 17,937 17,170
Less:� Net gain on securities - - - - 1,155
Revenue used for efficiency ratio (Non-GAAP) 44,818 44,183 43,251 178,346 169,598
Total noninterest expense (GAAP) 26,190 24,697 24,830 101,662 95,704
Less:� Other real estate (income) expense, net (28 ) 32 45 183 92
Expense used for efficiency ratio (Non-GAAP) 26,218 24,665 24,785 101,479 95,612
Efficiency Ratio 58.50% 55.82% 57.31% 56.90% 56.38%
(1)� All periods presented have been adjusted for the 1 for 5 reverse stock split which occurred on May 28, 2021.

Subsidiary: Trustco NASDAQ -- TRST
Contact:� Robert Leonard
Executive Vice President and
Chief Risk Officer
(518) 381-3693

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