GLENVILLE, N.Y., Jan. 23, 2023 (GLOBE NEWSWIRE) -- TrustCo Bank Corp NY ((TrustCo, NASDAQ:TRST) today announced full year 2022 net income of $75.2 million or $3.93 diluted earnings per share, compared to net income of $61.5 million or $3.19 diluted earnings per share for the full year 2021; and net income of $20.9 million or $1.10 diluted earnings per share for the three months ended December 31, 2022 which is another record quarter, compared to net income of $16.2 million or $0.85 diluted earnings per share for the three months ended December 31, 2021.

Overview

Chairman, President, and CEO, Robert J. McCormick said, "For Trustco Bank, 2022 was a banner year marked by celebrations surrounding our 120^th Anniversary. There also is cause for celebration as the year ends and the Company's performance is evaluated. A record fourth quarter caps off a year during which each successive quarter saw record earnings. As these records were set, the Company maintained strong liquidity and saw extraordinary loan growth. Throughout the year, we executed upon a strategy long in development that supported not only the completion of our stock buy-back program, but also a dividend increase – the third since 2018. As we look expectantly toward 2023, our team is ready to make the most of the expansion of the Bank's areas of operation and opportunities as they develop."

TrustCo saw continued loan growth in the fourth quarter of 2022 compared to the prior year, led by an increase in residential mortgages. Loan portfolio expansion was funded by a combination of utilizing a portion of our strong cash balances and by cash flow from investments, as well as growth in funding from expansion of earnings. The Federal Reserve decision to raise the target Federal Funds rate has contributed to our results during 2022, as our cash position and other variable rate products repriced upward, and is likely to continue to do so to the extent there are additional rate increases. We also note that current mortgage rates significantly exceed the yield on our existing portfolio of mortgages, which, if sustained, should be positive to net interest margin going forward. TrustCo's strong liquidity position continues to allow us to take advantage of opportunities as they arise.

Details

Average loans were up $253.2 million or 5.7% in the fourth quarter 2022 over the same period in 2021. Average residential loans, our primary lending focus, were up $181.8 million, or 4.6%, in the fourth quarter 2022 over the same period in 2021. Average deposits were down $25.4 million or 0.5% for the fourth quarter 2022 over the same period a year earlier. The decrease in deposits over the same period in 2021 was the result of a $72.2 million or 6.8% decrease in average time deposits, offset by an increase in total average core deposits of $46.8 million or 1.1%, which consist of interest bearing and non-interest bearing checking, savings and money market deposits. Within the core deposits, checking balances were up $62.7 million or 3.2% (including interest bearing and non-interest bearing checking balances), money market balances were down $94.5 million or 12.4%, and savings balances were up $78.6 million or 5.4%. As we move forward, our objective is to continue to encourage customers to retain these funds in the expanded product offerings of the Bank through aggressive marketing and product differentiation.

Net interest income and Net interest income on a tax equivalent basis, were both $49.2 million for the fourth quarter of 2022, an increase of $8.9 million or 22.1% compared to the same period in 2021, driven by solid liquidity and the recent increases in the Federal Funds target rate. The net interest margin for the fourth quarter 2022 was 3.34%, up 65 basis points from 2.69% in the fourth quarter of 2021. The cost of interest bearing liabilities increased to 0.26% in the fourth quarter 2022 from 0.13% in the fourth quarter 2021. As expected our CD portfolio (time deposits) repriced throughout the year at higher rates as the Bank continues to remain competitive due to the recent Federal Funds target rate increases. Continued repricing of the CD portfolio and increases in rates by the Federal Reserve Board will more than likely cause further increases in rates on interest bearing liabilities.

For the fourth quarter of 2022, return on average assets and return on average equity were 1.38% and 13.91%, respectively, compared to 1.05% and 10.92% for the fourth quarter of 2021. As previously discussed, improving efficiencies to reduce costs continues to remain a key area of focus. The efficiency ratio was 48.75% for the fourth quarter of 2022, a decrease compared to 58.50% for the fourth quarter of 2021. Total operating expenses increased by $215 thousand in the fourth quarter of 2022 as compared to the fourth quarter of 2021, with increases in salary and employee benefits, outsourced services and the other real estate expense (income), partly offset by declines in the occupancy, equipment, professional services, advertising, and other expense categories.

Asset quality remains strong and loan loss reserve measures are consistent over the past twelve months. The Company recorded a provision for credit losses of $50 thousand in the fourth quarter of 2022, which includes a provision for credit losses on loans of $500 thousand and a benefit for credit losses on unfunded commitments of $450 thousand as a result of a corresponding decrease in unfunded loan commitments. The ratio of allowance for credit losses on loans to total loans was 0.97% and 1.00% as of December 31, 2022 and 2021, respectively. The allowance for credit losses on loans was $46.0 million at December 31, 2022, compared to $44.3 million at December 31, 2021. Nonperforming loans (NPLs) were $17.5 million at December 31, 2022, compared to $18.8 million at December 31, 2021. NPLs were 0.37% and 0.42% of total loans at December 31, 2022 and 2021, respectively. The coverage ratio, or allowance for credit losses on loans to NPLs, was 263.1% at December 31, 2022, compared to 236.0% at December 31, 2021. Nonperforming assets (NPAs) were $19.6 million at December 31, 2022, compared to $19.1 million at December 31, 2021. As mentioned in the prior quarters, the Company adopted Accounting Standards Update 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ("CECL") effective January 1, 2022. TrustCo recorded a net decrease to retained earnings of $3.5 million upon adoption of the new accounting standard. The transition adjustment at January 1, 2022 included a $2.4 million increase in the allowance for credit losses on loans, a $2.3 million increase in the allowance for estimated credit losses on unfunded off-balance sheet credit exposures, and a corresponding increase in deferred tax assets of $1.2 million.

At December 31, 2022 our equity to asset ratio was 10.00%, compared to 9.70% at December 31, 2021. Book value per share at December 31, 2022 was $31.54, up 0.8% compared to $31.28 a year earlier.

TrustCo Bank Corp NY is a $6.0 billion savings and loan holding company and through its subsidiary, Trustco Bank, operated 143 offices in New York, New Jersey, Vermont, Massachusetts, and Florida at December 31, 2022.

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.

A conference call to discuss fourth quarter 2022 results will be held at 9:00 a.m. Eastern Time on January 24, 2023. Those wishing to participate in the call may dial 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 485191. 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 756689. The call will also be audio webcast at https://events.q4inc.com/attendee/840065868, and will be available for one year.

Forward-Looking Statements

All statements in this news release that are not historical are forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. 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 development, results or periods. Examples of forward-looking statements include, among others, statements we make regarding our expectations for our performance during 2023, including our expectations regarding the effects of the economic environment on our financial results, our ability to retain customers and the amount of customers' business, including deposit balances, with us, the impact of the Federal Reserve's actions regarding interest rates, the growth of loans and deposits throughout our branch network, the increase in residential mortgage rates, and our ability to capitalize on economic changes in the areas in which we operate. Forward-looking statements are based on management's current expectations as well as certain assumptions and estimates made by, and information available to, management at the time the statements are made. Such forward-looking statements are subject to factors and uncertainties that could cause actual results to differ materially for TrustCo from the views, beliefs and projections expressed in such statements, 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 and macroeconomic or geopolitical concerns related to inflation, rising interest rates and the war in Ukraine. 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 effects of inflation and inflationary pressures and changes in monetary and fiscal policies and laws, including increases in the Federal Funds target rate by, and interest rate policies of, the Federal Reserve Board; the geopolitical and macroeconomic impact of the war in Ukraine; the effects of the COVID-19 pandemic, including the impact of the actions taken by governmental authorities to contain the COVID-19 pandemic or address the impact of the pandemic 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; changes in and uncertainty related to benchmark interest rates used to price loans and deposits; future business strategies related to the implementation of CECL; changes in and uncertainty related to benchmark interest rates used to price loans and deposits; 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, borrowing and savings habits; 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; 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; 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; the effects of changes in tax laws; 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; the impact of severe weather events and climate change on us and the communities we serve; 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. The forward-looking statements contained in this news release represent TrustCo management's judgment as of the date of this news release. TrustCo disclaims, however, any intent or obligation to update forward-looking statements, either as a result of future developments, new information or otherwise, except as may be required by law.

TRUSTCO BANK CORP NY
GLENVILLE, NY

FINANCIAL HIGHLIGHTS

(dollars in thousands, except per share data)
(Unaudited)
		Three months ended
		12/31/2022	9/30/2022	12/31/2021
Summary of operations
Net interest income (TE) (1)	$	49,187	47,793	40,292
Provision (Credit) for credit losses		50	300	(3,000	)
Noninterest income		4,775	4,386	4,526
Noninterest expense		26,405	26,144	26,190
Net income		20,910	19,364	16,241

Per share
Net income per share:
- Basic	$	1.10	1.01	0.85
- Diluted		1.10	1.01	0.85
Cash dividends		0.360	0.350	0.350
Book value at period end		31.54	30.89	31.28
Market price at period end		37.59	31.42	33.31

At period end
Full time equivalent employees		750	753	759
Full service banking offices		143	144	147

Performance ratios
Return on average assets		1.38%	1.24	1.05
Return on average equity		13.91	12.78	10.92
Efficiency ratio (2)		48.75	49.87	58.50
Net interest spread (TE)		3.28	3.13	2.67
Net interest margin (TE)		3.34	3.16	2.69
Dividend payout ratio		32.81	34.57	41.42

Capital ratios at period end
Consolidated tangible equity to tangible assets (3)		9.99%	9.68	9.69
Consolidated equity to assets		10.00%	9.69	9.70

Asset quality analysis at period end
Nonperforming loans to total loans		0.37	0.40	0.42
Nonperforming assets to total assets		0.33	0.32	0.31
Allowance for credit losses on loans to total loans		0.97	0.98	1.00
Coverage ratio (4)		2.6x	2.4x	2.4x

(1) Non-GAAP measure; calculated as net interest income plus a taxable equivalent interest income adjustment.
(2) 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.
(3) Non-GAAP measure; calculated as total shareholders' equity less $553 of intangible assets divided by total assets less $553 of intangible assets. See Non-GAAP Financial Measures Reconciliation.
(4) Calculated as allowance for credit losses on loans divided by total nonperforming loans.

TE = Taxable equivalent

FINANCIAL HIGHLIGHTS, Continued

(dollars in thousands, except per share data)
(Unaudited)
		Year ended
		12/31/22		12/31/21
Summary of operations
Net interest income (TE) (1)	$	180,136		160,409
(Credit) Provision for credit losses		(341	)	(5,450	)
Noninterest income		19,260		17,937
Noninterest expense		100,319		101,662
Net income		75,234		61,519

Per share
Net income per share:
- Basic	$	3.93		3.19
- Diluted		3.93		3.19
Cash dividends		1.410		1.372
Book value at period end		31.54		31.28
Market price at period end		37.59		33.31

Performance ratios
Return on average assets		1.22	%	1.01
Return on average equity		12.60		10.61
Efficiency ratio (2)		50.22		56.90
Net interest spread (TE)		2.96		2.67
Net interest margin (TE)		2.99		2.71
Dividend payout ratio		35.86		42.95

(1) Non-GAAP measure; calculated as net interest income plus a taxable equivalent interest income adjustment.
(2) 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.

TE = Taxable equivalent.

CONSOLIDATED STATEMENTS OF INCOME

(dollars in thousands, except per share data)
(Unaudited)
		Three months ended
		12/31/2022		9/30/2022		6/30/2022		3/31/2022		12/31/2021
Interest and dividend income:
Interest and fees on loans	$	42,711		40,896		39,604		39,003		39,655
Interest and dividends on securities available for sale:
U. S. government sponsored enterprises		693		479		147		86		76
State and political subdivisions		-		1		-		1		-
Mortgage-backed securities and collateralized mortgage
obligations - residential		1,606		1,617		1,367		1,087		1,073
Corporate bonds		523		526		522		233		206
Small Business Administration - guaranteed
participation securities		124		133		140		154		165
Other securities		2		3		2		2		4
Total interest and dividends on securities available for sale		2,948		2,759		2,178		1,563		1,524

Interest on held to maturity securities:
Mortgage-backed securities and collateralized mortgage
obligations - residential		81		85		87		90		97
Total interest on held to maturity securities		81		85		87		90		97

Federal Home Loan Bank stock		98		80		65		62		62

Interest on federal funds sold and other short-term investments		6,246		5,221		2,253		572		432
Total interest income		52,084		49,041		44,187		41,290		41,770

Interest expense:
Interest on deposits:
Interest-bearing checking		61		43		42		44		42
Savings		401		200		163		156		149
Money market deposit accounts		389		237		210		214		201
Time deposits		1,839		646		536		546		865
Interest on short-term borrowings		208		122		176		234		221
Total interest expense		2,898		1,248		1,127		1,194		1,478

Net interest income		49,186		47,793		43,060		40,096		40,292

Less: Provision (Credit) for credit losses		50		300		(491	)	(200	)	(3,000	)
Net interest income after provision for loan losses		49,136		47,493		43,551		40,296		43,292

Noninterest income:
Trustco Financial Services income		1,773		1,435		1,996		1,833		1,766
Fees for services to customers		2,783		2,705		2,658		2,801		2,578
Other		219		246		262		549		182
Total noninterest income		4,775		4,386		4,916		5,183		4,526

Noninterest expenses:
Salaries and employee benefits		13,067		12,134		11,464		9,239		11,984
Net occupancy expense		4,261		4,483		4,254		4,529		4,569
Equipment expense		1,700		1,532		1,667		1,588		1,758
Professional services		1,251		1,375		1,484		1,467		1,579
Outsourced services		2,102		2,328		2,500		2,280		1,950
Advertising expense		532		508		389		617		762
FDIC and other insurance		770		773		804		812		780
Other real estate expense (income), net		101		124		74		11		(28	)
Other		2,621		2,887		2,369		2,222		2,836
Total noninterest expenses		26,405		26,144		25,005		22,765		26,190

Income before taxes		27,506		25,735		23,462		22,714		21,628
Income taxes		6,596		6,371		5,591		5,625		5,387

Net income	$	20,910		19,364		17,871		17,089		16,241

Net income per common share:
- Basic	$	1.10		1.01		0.93		0.89		0.85

- Diluted		1.10		1.01		0.93		0.89		0.85

Average basic shares (in thousands)		19,045		19,111		19,153		19,209		19,216
Average diluted shares (in thousands)		19,050		19,112		19,153		19,210		19,218

Note: Taxable equivalent net interest income	$	49,187		47,793		43,060		40,096		40,292



CONSOLIDATED STATEMENTS OF INCOME, Continued

(dollars in thousands, except per share data)
(Unaudited)
		Year ended
		12/31/22		12/31/21
Interest and dividend income:
Interest and fees on loans	$	162,214		159,168
Interest and dividends on securities available for sale:
U. S. government sponsored enterprises		1,405		314
State and political subdivisions		2		2
Mortgage-backed securities and collateralized mortgage
obligations - residential		5,677		4,515
Corporate bonds		1,804		1,065
Small Business Administration - guaranteed
participation securities		551		745
Other securities		9		20
Total interest and dividends on securities available for sale		9,448		6,661

Interest on held to maturity securities:
Mortgage-backed securities-residential		343		435
Total interest on held to maturity securities		343		435

Federal Home Loan Bank stock		305		260

Interest on federal funds sold and other short-term investments		14,292		1,458
Total interest income		186,602		167,982

Interest expense:
Interest on deposits:
Interest-bearing checking		190		178
Savings		920		624
Money market deposit accounts		1,050		922
Time deposits		3,567		4,941
Interest on short-term borrowings		740		909
Total interest expense		6,467		7,574

Net interest income		180,135		160,408

Less: (Credit) Provision for credit losses		(341	)	(5,450	)
Net interest income after provision for loan losses		180,476		165,858

Noninterest income:
Trustco Financial Services income		7,037		7,358
Fees for services to customers		10,947		9,799
Other		1,276		780
Total noninterest income		19,260		17,937

Noninterest expenses:
Salaries and employee benefits		45,904		48,721
Net occupancy expense		17,527		17,742
Equipment expense		6,487		6,617
Professional services		5,577		6,108
Outsourced services		9,210		8,384
Advertising expense		2,046		1,975
FDIC and other insurance		3,159		3,010
Other real estate expense, net		310		183
Other		10,099		8,922
Total noninterest expenses		100,319		101,662

Income before taxes		99,417		82,133
Income taxes		24,183		20,614

Net income	$	75,234		61,519

Net income per common share:
- Basic	$	3.93		3.19

- Diluted		3.93		3.19

Average basic shares (in thousands)		19,131		19,259
Average diluted shares (in thousands)		19,133		19,263

Note: Taxable equivalent net interest income	$	180,136		160,409



CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

(dollars in thousands)
(Unaudited)
		12/31/2022		9/30/2022		6/30/2022		3/31/2022		12/31/2021
ASSETS:

Cash and due from banks	$	43,429		46,236		46,611		47,526		48,357
Federal funds sold and other short term investments		607,170		795,028		999,573		1,225,022		1,171,113
Total cash and cash equivalents		650,599		841,264		1,046,184		1,272,548		1,219,470

Securities available for sale:
U. S. government sponsored enterprises		118,187		102,779		101,100		62,059		59,179
States and political subdivisions		34		41		41		41		41
Mortgage-backed securities and collateralized mortgage
obligations - residential		260,316		261,242		287,450		244,045		270,798
Small Business Administration - guaranteed
participation securities		20,977		22,498		25,428		28,086		31,674
Corporate bonds		81,346		81,002		87,740		74,089		45,337
Other securities		653		657		656		671		684
Total securities available for sale		481,513		468,219		502,415		408,991		407,713

Held to maturity securities:
Mortgage-backed securities and collateralized mortgage
obligations-residential		7,707		8,091		8,544		9,183		9,923
Total held to maturity securities		7,707		8,091		8,544		9,183		9,923

Federal Reserve Bank and Federal Home Loan Bank stock		5,797		5,797		5,797		5,604		5,604

Loans:
Commercial		231,011		217,120		199,886		192,408		200,200
Residential mortgage loans		4,203,451		4,132,365		4,076,657		4,026,434		3,998,187
Home equity line of credit		286,432		269,341		253,758		236,117		230,976
Installment loans		12,307		10,665		10,258		9,395		9,416
Loans, net of deferred net costs		4,733,201		4,629,491		4,540,559		4,464,354		4,438,779

Less: Allowance for credit losses on loans		46,032		45,517		45,285		46,178		44,267
Net loans		4,687,169		4,583,974		4,495,274		4,418,176		4,394,512

Bank premises and equipment, net		32,556		31,931		32,381		32,644		33,027
Operating lease right-of-use assets		44,727		45,733		47,343		48,569		48,090
Other assets		89,984		94,485		88,853		86,158		78,207

Total assets	$	6,000,052		6,079,494		6,226,791		6,281,873		6,196,546

LIABILITIES:
Deposits:
Demand	$	838,147		859,829		851,573		835,281		794,878
Interest-bearing checking		1,183,321		1,188,790		1,208,159		1,225,093		1,191,304
Savings accounts		1,521,473		1,562,564		1,577,034		1,553,152		1,504,554
Money market deposit accounts		621,106		716,319		760,338		796,275		782,079
Time deposits		1,028,763		954,352		999,737		940,215		995,314
Total deposits		5,192,810		5,281,854		5,396,841		5,350,016		5,268,129

Short-term borrowings		122,700		124,932		147,282		248,371		244,686
Operating lease liabilities		48,980		50,077		51,777		53,094		52,720
Accrued expenses and other liabilities		35,575		33,625		36,259		37,497		29,883

Total liabilities		5,400,065		5,490,488		5,632,159		5,688,978		5,595,418

SHAREHOLDERS' EQUITY:
Capital stock		20,058		20,046		20,046		20,046		20,046
Surplus		257,078		256,661		256,661		256,661		256,661
Undivided profits		393,831		379,769		367,100		355,948		349,056
Accumulated other comprehensive (loss) income, net of tax		(27,194	)	(25,209	)	(9,422	)	(2,369	)	12,147
Treasury stock at cost		(43,786	)	(42,261	)	(39,753	)	(37,391	)	(36,782	)

Total shareholders' equity		599,987		589,006		594,632		592,895		601,128

Total liabilities and shareholders' equity	$	6,000,052		6,079,494		6,226,791		6,281,873		6,196,546

Outstanding shares (in thousands)		19,024		19,052		19,127		19,202		19,220

NONPERFORMING ASSETS

(dollars in thousands)
(Unaudited)
		12/31/2022		9/30/2022		6/30/2022		3/31/2022		12/31/2021
Nonperforming Assets

New York and other states*
Loans in nonaccrual status:
Commercial	$	219		179		203		187		112
Real estate mortgage - 1 to 4 family		14,949		16,295		16,259		17,065		16,574
Installment		23		29		40		33		37
Total non-accrual loans		15,191		16,503		16,502		17,285		16,723
Other nonperforming real estate mortgages - 1 to 4 family		10		12		14		16		17
Total nonperforming loans		15,201		16,515		16,516		17,301		16,740
Other real estate owned		2,061		682		644		269		362
Total nonperforming assets	$	17,262		17,197		17,160		17,570		17,102

Florida
Loans in nonaccrual status:
Commercial	$	314		-		-		-		-
Real estate mortgage - 1 to 4 family		1,895		2,104		2,192		2,109		2,016
Installment		83		65		5		8		-
Total non-accrual loans		2,292		2,169		2,197		2,117		2,016
Other nonperforming real estate mortgages - 1 to 4 family		-		-		-		-		-
Total nonperforming loans		2,292		2,169		2,197		2,117		2,016
Other real estate owned		-		-		-		-		-
Total nonperforming assets	$	2,292		2,169		2,197		2,117		2,016

Total
Loans in nonaccrual status:
Commercial	$	533		179		203		187		112
Real estate mortgage - 1 to 4 family		16,844		18,399		18,451		19,174		18,590
Installment		106		94		45		41		37
Total non-accrual loans		17,483		18,672		18,699		19,402		18,739
Other nonperforming real estate mortgages - 1 to 4 family		10		12		14		16		17
Total nonperforming loans		17,493		18,684		18,713		19,418		18,756
Other real estate owned		2,061		682		644		269		362
Total nonperforming assets	$	19,554		19,366		19,357		19,687		19,118


Quarterly Net (Recoveries) Chargeoffs

New York and other states*
Commercial	$	-		-		-		36		-
Real estate mortgage - 1 to 4 family		(46	)	(164	)	(119	)	(97	)	52
Installment		31		34		12		3		31
Total net (recoveries) chargeoffs	$	(15	)	(130	)	(107	)	(58	)	83

Florida
Commercial	$	-		-		-		-		-
Real estate mortgage - 1 to 4 family		-		-		-		-		-
Installment		-		(2	)	-		-		-
Total net (recoveries) chargeoffs	$	-		(2	)	-		-		-

Total
Commercial	$	-		-		-		36		-
Real estate mortgage - 1 to 4 family		(46	)	(164	)	(119	)	(97	)	52
Installment		31		32		12		3		31
Total net (recoveries) chargeoffs	$	(15	)	(132	)	(107	)	(58	)	83


Asset Quality Ratios

Total nonperforming loans (1)	$	17,493		18,684		18,713		19,418		18,756
Total nonperforming assets (1)		19,554		19,366		19,357		19,687		19,118
Total net (recoveries) chargeoffs (2)		(15	)	(132	)	(107	)	(58	)	83

Allowance for credit losses on loans (1)		46,032		45,517		45,285		46,178		44,267

Nonperforming loans to total loans		0.37%		0.40%		0.41%		0.43%		0.42%
Nonperforming assets to total assets		0.33%		0.32%		0.31%		0.31%		0.31%
Allowance for credit losses on loans to total loans		0.97%		0.98%		1.00%		1.03%		1.00%
Coverage ratio (1)		263.1%		243.6%		242.0%		237.8%		236.0%
Annualized net (recoveries) chargeoffs to average loans (2)		0.00%		-0.01%		-0.01%		-0.01%		0.01%
Allowance for credit losses on loans to annualized net (recoveries) chargeoffs (2)		N/A		N/A		N/A		N/A		133.3x

* Includes New York, New Jersey, Vermont and Massachusetts.
(1) At period-end
(2) For the three-month 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, 2022							December 31, 2021
		Average		Interest		Average			Average		Interest		Average
		Balance				Rate			Balance				Rate
Assets

Securities available for sale:
U. S. government sponsored enterprises	$	120,415		693		2.30	%	$	59,975		76		0.51	%
Mortgage backed securities and collateralized mortgage
obligations - residential		292,845		1,606		2.18			279,472		1,073		1.54
State and political subdivisions		40		1		7.81			46		0		-
Corporate bonds		85,701		523		2.44			45,858		206		1.79
Small Business Administration - guaranteed
participation securities		23,805		124		2.10			31,903		165		2.07
Other		686		2		1.17			680		4		2.35

Total securities available for sale		523,492		2,949		2.25			417,934		1,524		1.46

Federal funds sold and other short-term Investments		669,280		6,246		3.70			1,123,276		432		0.15

Held to maturity securities:
Mortgage backed securities and collateralized mortgage
obligations - residential		7,886		81		4.12			10,311		97		3.76

Total held to maturity securities		7,886		81		4.12			10,311		97		3.76

Federal Home Loan Bank stock		5,797		98		6.76			5,604		62		4.43

Commercial loans		223,164		2,756		4.94			202,092		2,704		5.35
Residential mortgage loans		4,161,481		36,109		3.47			3,979,645		34,602		3.48
Home equity lines of credit		278,853		3,661		5.21			230,408		2,192		3.77
Installment loans		10,886		185		6.74			9,068		157		6.87

Loans, net of unearned income		4,674,384		42,711		3.65			4,421,213		39,655		3.59

Total interest earning assets		5,880,839		52,085		3.54			5,978,338		41,770		2.79

Allowance for credit losses on loans		(45,722	)						(47,379	)
Cash & non-interest earning assets		171,921							197,382


Total assets	$	6,007,038						$	6,128,341


Liabilities and shareholders' equity

Deposits:
Interest bearing checking accounts	$	1,164,178		61		0.02	%	$	1,151,704		42		0.01	%
Money market accounts		668,537		389		0.23			763,053		201		0.10
Savings		1,540,163		401		0.10			1,461,568		149		0.04
Time deposits		983,590		1,839		0.74			1,055,792		865		0.32

Total interest bearing deposits		4,356,468		2,690		0.25			4,432,117		1,257		0.11
Short-term borrowings		126,562		208		0.65			233,829		221		0.38

Total interest bearing liabilities		4,483,030		2,898		0.26			4,665,946		1,478		0.13

Demand deposits		845,493							795,258
Other liabilities		82,085							77,165
Shareholders' equity		596,430							589,972

Total liabilities and shareholders' equity	$	6,007,038						$	6,128,341

Net interest income, tax equivalent				49,187							40,292

Net interest spread						3.28	%						2.67	%


Net interest margin (net interest income to
total interest earning assets)						3.34	%						2.69	%

Tax equivalent adjustment				(1	)						-


Net interest income				49,186							40,292



DISTRIBUTION OF ASSETS, LIABILITIES AND SHAREHOLDERS' EQUITY -
INTEREST RATES AND INTEREST DIFFERENTIAL, Continued

(dollars in thousands)
(Unaudited)		Year ended							Year ended
		December 31, 2022							December 31, 2021
		Average		Interest		Average			Average		Interest		Average
		Balance				Rate			Balance				Rate
Assets

Securities available for sale:
U. S. government sponsored enterprises	$	89,557		1,405		1.57	%	$	63,743		314		0.49	%
Mortgage backed securities and collateralized mortgage
obligations - residential		284,901		5,677		1.99			308,777		4,515		1.46
State and political subdivisions		41		3		6.66			48		3		6.56
Corporate bonds		78,266		1,804		2.31			53,699		1,065		1.98
Small Business Administration - guaranteed
participation securities		26,679		551		2.07			35,723		745		2.09
Other		686		9		1.31			685		20		2.92

Total securities available for sale		480,130		9,449		1.97			462,675		6,662		1.44

Federal funds sold and other short-term Investments		969,043		14,292		1.47			1,111,257		1,458		0.13

Held to maturity securities:
Mortgage backed securities and collateralized mortgage
obligations - residential		8,647		343		3.97			11,733		435		3.71

Total held to maturity securities		8,647		343		3.97			11,733		435		3.71

Federal Home Loan Bank stock		5,749		305		5.31			5,578		260		4.66

Commercial loans		206,144		10,168		4.93			210,145		10,907		5.19
Residential mortgage loans		4,081,120		140,420		3.44			3,884,336		138,821		3.57
Home equity lines of credit		254,168		10,950		4.31			233,628		8,814		3.77
Installment loans		9,849		676		6.87			8,725		626		7.17

Loans, net of unearned income		4,551,281		162,214		3.56			4,336,834		159,168		3.67

Total interest earning assets		6,014,850		186,603		3.10			5,928,077		167,983		2.83

Allowance for credit losses on loans		(46,124	)						(49,421	)
Cash & non-interest earning assets		190,278							196,825


Total assets	$	6,159,004						$	6,075,481


Liabilities and shareholders' equity

Deposits:
Interest bearing checking accounts	$	1,190,337		190		0.02	%	$	1,134,702		178		0.02	%
Money market accounts		745,714		1,050		0.14			739,139		922		0.12
Savings		1,553,016		920		0.06			1,397,432		624		0.04
Time deposits		974,428		3,567		0.37			1,166,963		4,941		0.42

Total interest bearing deposits		4,463,495		5,727		0.13			4,438,236		6,665		0.15
Short-term borrowings		177,599		740		0.42			232,815		909		0.39

Total interest bearing liabilities		4,641,094		6,467		0.14			4,671,051		7,574		0.16

Demand deposits		838,944							750,111
Other liabilities		81,880							74,396
Shareholders' equity		597,086							579,923

Total liabilities and shareholders' equity	$	6,159,004						$	6,075,481

Net interest income, tax equivalent				180,136							160,409

Net interest spread						2.96	%						2.67	%


Net interest margin (net interest income to
total interest earning assets)						2.99	%						2.71	%

Tax equivalent adjustment				(1	)						(1	)


Net interest income				180,135							160,408

Non-GAAP Financial Measures Reconciliation

Tangible book value per share is a non-GAAP financial measure derived from GAAP-based amounts. We calculate tangible book value by excluding the balance of intangible assets from total shareholders' equity divided by shares outstanding. 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. Additionally, we believe that this measure is important to many investors in the marketplace who are interested in relative changes from period to period in equity exclusive of changes in intangible assets.

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 total 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. Additionally, we believe that this measure is important to many investors in the marketplace who are interested in relative changes from period to period in equity and total assets, each exclusive of changes in intangible assets.

The efficiency ratio is a non-GAAP measure of expense control relative to revenue from net interest income and non-interest fee income. We calculate the efficiency ratio by dividing total noninterest expenses as determined under GAAP, excluding other real estate expense, net, by net interest income (fully taxable equivalent) and total noninterest income as determined under GAAP, excluding non-routine items from this calculation. We believe that this provides a reasonable measure of primary banking expenses relative to primary banking revenue. Additionally, we believe this measure is important to investors looking for a measure of efficiency in our productivity measured by the amount of revenue generated for each dollar spent.

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 book value per share, tangible common equity, and efficiency ratio to the most directly comparable GAAP measures is set forth below.

NON-GAAP FINANCIAL MEASURES RECONCILIATION

(dollars in thousands)
(Unaudited)
		12/31/2022	9/30/2022	12/31/2021
Tangible Book Value Per Share

Equity (GAAP)	$	599,987	589,006	601,128
Less: Intangible assets		553	553	553
Tangible equity (Non-GAAP)		599,434	588,453	600,575

Shares outstanding		19,024	19,052	19,220
Tangible book value per share		31.51	30.89	31.25
Book value per share		31.54	30.92	31.28

Tangible Equity to Tangible Assets
Total Assets (GAAP)		6,000,052	6,079,494	6,196,546
Less: Intangible assets		553	553	553
Tangible assets (Non-GAAP)		5,999,499	6,078,941	6,195,993

Tangible Equity to Tangible Assets (Non-GAAP)		9.99%	9.68%	9.69%
Equity to Assets (GAAP)		10.00%	9.69%	9.70%

		Three months ended					Year ended
Efficiency Ratio		12/31/2022	9/30/2022	12/31/2021			12/31/2022	12/31/2021

Net interest income (GAAP)	$	49,186	47,793	40,292		$	180,135	160,408
Taxable equivalent adjustment		1	0	0			1	1
Net interest income (fully taxable equivalent) (Non-GAAP)		49,187	47,793	40,292			180,136	160,409
Non-interest income (GAAP)		4,775	4,386	4,526			19,260	17,937
Less: Net gain on sale of building		-	-	-			268	-
Revenue used for efficiency ratio (Non-GAAP)		53,962	52,179	44,818			199,128	178,346

Total noninterest expense (GAAP)		26,405	26,144	26,190			100,319	101,662
Less: Other real estate (income) expense, net		101	124	(28	)		310	183
Expense used for efficiency ratio (Non-GAAP)		26,304	26,020	26,218			100,009	101,479

Efficiency Ratio		48.75%	49.87%	58.50%			50.22%	56.90%

Subsidiary:	Trustco Bank

Contact:	Robert Leonard
	Executive Vice President
	(518) 381-3693

TrustCo Caps Off 120th Anniversary Year, Reports Record Performance; Net Income of $75.2 Million up 22.3% over the prior year