Form 8-K - Current report

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT PURSUANT

TO SECTION 13 OR 15(D) OF THE

SECURITIES EXCHANGE ACT OF 1934

Date of Report (date of earliest event reported): July 22, 2024

TrustCo Bank Corp NY

(Exact name of registrant as specified in its charter)

New York	0-10592	14-1630287
State or Other Jurisdiction of Incorporation or Organization	Commission File No.	I.R.S. Employer Identification Number

5 SARNOWSKI DRIVE, GLENVILLE, NEW YORK 12302

(Address of principal executive offices)

(518) 377-3311

(Registrant’s Telephone Number,

Including Area Code)

NOT APPLICABLE

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

	Title of each class		Trading Symbol(s)		Name of each exchange on which registered
	Common Stock, $1.00 par value		TRST		Nasdaq Global Select Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

TrustCo Bank Corp NY

Item 2.02.

Results of Operations and Financial Condition

On July 22, 2024 TrustCo Bank Corp NY (“TrustCo”) issued a press release with results for the quarter ending June 30, 2024. Attached is a copy of the press release labeled as Exhibit 99(a).

Item 9.01.

Financial Statements and Exhibits

(d)

Exhibits

Reg S-K Exhibit No.	Description

99(a)	Press release dated July 22, 2024 for the period ending June 30, 2024, regarding quarterly results.

104	Cover Page Interactive Data File – the cover page XBRL tags are embedded within the Inline XBRL document.

-2-

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

Dated: July 22, 2024

	TrustCo Bank Corp NY
	(Registrant)

	By:	/s/ Michael M. Ozimek
		Michael M. Ozimek
		Executive Vice President and
		Chief Financial Officer

-3-

Exhibit 99(a)

News Release

5 Sarnowski Drive, Glenville, New York, 12302

(518) 377-3311 Fax: (518) 381-3668

Subsidiary:	Trustco Bank	Nasdaq -- TRST

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

FOR IMMEDIATE RELEASE:

TRUSTCO DELIVERS ONCE AGAIN WITH SECOND QUARTER RESULTS

NET INTEREST MARGIN UP 3.7% ON LOAN GROWTH OF 3.8%

Executive Snapshot:

•	Average Loan portfolio continues to grow:

o	On average, total loans were up $182.2 million or 3.8% for the second quarter 2024 compared to the second quarter 2023

•	Continued solid financial results:

o	Key metrics for second quarter 2024:

◾	Net income of $12.6 million versus $12.1 million for the first quarter 2024

◾	Net interest income of $37.8 million, up from $36.6 million compared to the first quarter of 2024

◾	Return on average assets (ROAA) of 0.82% compared to 0.80% to the first quarter of 2024

◾	Return on average equity (ROAE) of 7.76% versus 7.54% for the first quarter 2024

◾	Book value per share as of June 30, 2024 was $34.46, up from $34.12 compared to March 31, 2024

•	Superior asset quality:

o	Nonperforming loans (NPLs) were $19.2 million as of June 30, 2024, down from $19.4 million as of June 30, 2023, and generally continue to remain at low levels

o	NPLs to total loans were 0.38% as of June 30, 2024 compared to 0.40% as of June 30, 2023

o	Nonperforming assets (NPAs) to total assets was 0.35% as of June 30, 2024 compared to 0.34% as of June 30, 2023

•	Capital continues to grow:

o	Consolidated equity to assets increased 4.9% to 10.73% as of June 30, 2024 from 10.23% as of June 30, 2023

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Glenville, New York – July 22, 2024

TrustCo Bank Corp NY (TrustCo, NASDAQ: TRST) today announced second quarter 2024 net income of $12.6 million or $0.66 diluted earnings per share, compared to net income of $16.4 million or $0.86 diluted earnings per share for the second quarter 2023; and net income of $24.7 million or $1.30 diluted earnings per share for the six months ended June 30, 2024, compared to net income of $34.1 million or $1.79 diluted earnings per share for the six months ended June 30, 2023. Average loan growth increased $182.2 million or 3.8% for the second quarter 2024 over the same period in 2023.

During the second quarter of 2024, Visa Inc. accepted the Company’s tender of its 6,528 shares of Visa Class B-1 common stock in exchange for a combination of Visa Class B-2 common stock and Visa Class C common stock. As a result of the exchange, the Company marked its Visa Class C common stock to fair value and recorded a gain of $1.4 million based on the conversion privilege of the Visa Class C common stock and the closing price of Visa Class A common stock on June 28, 2024 of $262.47 per share. The Company’s Visa Class C shares are expected to continue to be marked to fair value on a recurring basis using the Visa Class A shares as evidence of orderly transactions between market participants for similar securities issued by Visa. The Company originally obtained the shares in 2008. The strategic decision to retain those shares and not sell them sooner, allowed the Company to avoid commissions and other expenses thus recognizing the full market value. Further, it is anticipated that there could be future opportunities to exchange Class B-2 shares.

Overview

Chairman, President, and CEO, Robert J. McCormick said “Our success this quarter arises directly from our commitment to the core principles of Trustco Bank: competitive pricing and exceptional customer service. This clear mission focus enabled us to reach yet another milestone in our loan portfolio, as our residential, home equity, and commercial offerings all grew significantly over this time last year, reaching an all-time high for total loans. With all revenue streams producing, we realized a 4% increase in net income. By employing a sharp focus on loan pricing and resisting upward pressure on deposit rates, we realized a 3.7% increase in net interest margin. All this was accomplished as we not only maintained, but grew capital. In true Trustco fashion, credit quality remains stellar. We believe that this momentum positions us well for the remainder of the year.”

Details

Average loans were up $182.2 million or 3.8% in the second quarter 2024 over the same period in 2023. Average residential loans and home equity lines of credit, our primary lending focus, were up $89.9 million, or 2.1%, and $61.1 million, or 20.1%, respectively, in the second quarter 2024 over the same period in 2023. Average commercial loans also increased $31.5 million, or 12.7%, in the second quarter 2024 over the same period in 2023. Average deposits were up $77.4 million, or 1.5% for the second quarter 2024 over the same period in 2023. We believe the increase in time deposits compared to the prior year 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.

Net interest income was $37.8 million for the second quarter 2024, an increase of $1.2 million, or 3.3%, compared to the prior quarter, driven by loan growth at higher interest rates, an increase in interest on federal funds sold and other short-term investments, and lower cost of deposits, partially offset by lower investment earnings. The net interest margin for the second quarter 2024 was 2.53%, up 9 basis points from 2.44% in the first quarter of 2024. The yield on interest earnings assets increased to 4.06%, up 7 basis points from 3.99% in the first quarter of 2024. The cost of interest bearing liabilities decreased to 1.97% in the second quarter 2024 from 1.99% in the first quarter 2024. The Bank has seen success in managing deposits by lowering the rates on time deposits and retaining deposit balances, while still being competitive in the markets we serve. The Federal Reserve’s decision regarding whether to cut or hold rates in the upcoming meetings will have an effect on our ability to continue to decrease deposit costs which should help margin in future quarters, and consequently, should bring down the cost of deposits over time. Non-interest expense increased $1.6 million over the prior quarter primarily as a result of higher salaries and employee benefits costs.

Page | 2

Asset quality remains strong and has been consistent over the past twelve months. The Company recorded a provision for credit losses of $500 thousand in the second quarter of 2024, which is the result of a provision for credit losses on loans of $500 thousand, and there was no change in unfunded commitments. The ratio of allowance for credit losses on loans to total loans was 0.99% and 0.96% as of June 30, 2024 and 2023, respectively. The allowance for credit losses on loans was $49.8 million at June 30, 2024, compared to $46.9 million at June 30, 2023. NPLs were $19.2 million at June 30, 2024, compared to $19.4 million at June 30, 2023. NPLs were 0.38% and 0.40% of total loans at June 30, 2024 and 2023, respectively. The coverage ratio, or allowance for credit losses on loans to NPLs, was 259.4% at June 30, 2024, compared to 241.6% at June 30, 2023. NPAs were $21.5 million at June 30, 2024, compared to $20.8 million at June 30, 2023.

At June 30, 2024, our equity to asset ratio was 10.73%, compared to 10.23% at June 30, 2023. Book value per share at June 30, 2024 was $34.46, up 5.5% compared to $32.66 a year earlier.

A conference call to discuss second quarter 2024 results will be held at 9:00 a.m. Eastern Time on July 23, 2024. Those wishing to participate in the call may dial toll-free for the United States at 1-833-470-1428, and for Canada at 1-833-950-0062, Access code 332275. A replay of the call will be available for thirty days by dialing toll-free for the United States at 1-866-813-9403, Access code 270896. The call will also be audio webcast at https://events.q4inc.com/attendee/723112639, and will be available for one year.

About TrustCo Bank Corp NY

TrustCo Bank Corp NY is a $6.1 billion savings and loan holding company and through its subsidiary, Trustco Bank, operated 138 offices in New York, New Jersey, Vermont, Massachusetts, and Florida at June 30, 2024.

In addition, the Bank’s Wealth Management 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.

Page | 3

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 future performance, 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, 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 volatility in financial markets and macroeconomic or geopolitical concerns related to inflation, continued elevated interest rates and ongoing armed conflicts (including the Russia/Ukraine conflict and the conflict in Israel and surrounding areas). 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: future changes in interest rates; ongoing inflationary pressures and continued elevated prices; exposure to credit risk in our lending activities; our increasing commercial loan portfolio; the sufficiency of our allowance for credit losses on loans to cover actual loan losses; our ability to meet the cash flow requirements of our depositors or borrowers or meet our operating cash needs to fund corporate expansion and other activities; claims and litigation pertaining to fiduciary responsibility and lender liability; our dependency upon the services of the management team; our disclosure controls and procedures’ ability to prevent or detect errors or acts of fraud; the adequacy of our business continuity and disaster recovery plans; the effectiveness of our risk management framework; the impact of any expansion by us into new lines of business or new products and services; the impact of severe weather events and climate change on us and the communities we serve, including societal responses to climate change; increasing scrutiny and evolving expectations from customers, regulators, investors, and other stakeholders with respect to our environmental, social and governance practices; the chance of a prolonged economic downturn, especially one affecting our geographic market area; instability in global economic conditions and geopolitical matters, as well as volatility in financial markets; the soundness of other financial institutions; U.S. government shutdowns, credit rating downgrades, or failure to increase the debt ceiling; fluctuations in the trust wealth management fees we receive as a result of investment performance; the impact of regulatory capital rules on our growth; changes in laws and regulations, including changes in cybersecurity or privacy regulations; restrictions on data collection and use; our compliance with the USA PATRIOT Act, Bank Secrecy Act, and other laws and regulations that could result in material fines or sanctions; changes in tax laws; limitations on our ability to pay dividends; TrustCo Realty Corp.’s ability to qualify as a real estate investment trust; changes in accounting standards; competition within our market areas; consumers and businesses’ use of non-banks to complete financial transactions; our reliance on third-party service providers; the impact of data breaches and cyber-attacks; the impact of a failure in or breach of our operational or security systems or infrastructure, or those of third parties; the impact of an unauthorized disclosure of sensitive or confidential client or customer information; the impact of interruptions in the effective operation of our computer systems; the impact of anti-takeover provisions in our organizational documents; the impact of the manner in which we allocate capital; 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.

Page | 4

TRUSTCO BANK CORP NY

GLENVILLE, NY

FINANCIAL HIGHLIGHTS

(dollars in thousands, except per share data)

(Unaudited)

	Three months ended
	6/30/2024			3/31/2024			6/30/2023
Summary of operations
Net interest income	$	37,788		$	36,578		$	44,052
Provision (Credit) for credit losses		500			600			(500	)
Unrealized gains recognized on equity securities		1,360			-			-
Noninterest income, excluding unrealized gains recognized on equity securities		4,291			4,843			4,598
Noninterest expense		26,459			24,903			27,327
Net income		12,551			12,126			16,372

Per share
Net income per share:
- Basic	$	0.66		$	0.64		$	0.86
- Diluted		0.66			0.64			0.86
Cash dividends		0.36			0.36			0.36
Book value at period end		34.46			34.12			32.66
Market price at period end		28.77			28.16			28.61

At period end
Full time equivalent employees		753			761			791
Full service banking offices		138			139			143

Performance ratios
Return on average assets		0.82	%		0.80	%		1.09	%
Return on average equity		7.76			7.54			10.61
Efficiency ratio (1)		62.84			59.94			55.87
Net interest spread		2.09			2.00			2.74
Net interest margin		2.53			2.44			2.98
Dividend payout ratio		54.57			56.48			41.83

Capital ratios at period end
Consolidated equity to assets		10.73	%		10.51	%		10.23	%
Consolidated tangible equity to tangible assets (2)		10.72	%		10.50	%		10.22	%

Asset quality analysis at period end
Nonperforming loans to total loans		0.38	%		0.37	%		0.40	%
Nonperforming assets to total assets		0.35			0.33			0.34
Allowance for credit losses on loans to total loans		0.99			0.98			0.96
Coverage ratio (3)		2.6	x		2.7	x		2.4	x

(1) Non-GAAP measure; calculated as noninterest expense (excluding ORE income/expense) divided by taxable equivalent net interest income plus noninterest income (excluding unrealized gains recognized on equity securities). See Non-GAAP Financial Measures Reconciliation.

(2) 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.

(3) Calculated as allowance for credit losses on loans divided by total nonperforming loans.

Page | 5

FINANCIAL HIGHLIGHTS, Continued

(dollars in thousands, except per share data)

(Unaudited)

	Six Months Ended
	06/30/24			06/30/23
Summary of operations
Net interest income	$	74,366			91,017
Provision (Credit) for credit losses		1,100			(200	)
Unrealized gains recognized on equity securities		1,360			-
Noninterest income, excluding unrealized gains recognized on equity securities		9,134			9,267
Noninterest expense		51,362			55,006
Net income		24,677			34,118

Per share
Net income per share:
- Basic	$	1.30			1.79
- Diluted		1.30			1.79
Cash dividends		0.72			0.72
Book value at period end		34.46			32.66
Market price at period end		28.77			28.61

Performance ratios
Return on average assets		0.81	%		1.14
Return on average equity		7.65			11.22
Efficiency ratio (1)		61.40			54.48
Net interest spread		2.05			2.90
Net interest margin		2.48			3.10
Dividend payout ratio		55.51			40.15

(1)	Non-GAAP measure; calculated as noninterest expense (excluding ORE income/expense) divided by taxable equivalent net interest income plus noninterest income (excluding unrealized gains recognized on equity securities). See Non-GAAP Financial Measures Reconciliation.

Page | 6

CONSOLIDATED STATEMENTS OF INCOME

(dollars in thousands, except per share data)

(Unaudited)

	Three months ended
	6/30/2024		3/31/2024		12/31/2023			9/30/2023		6/30/2023
Interest and dividend income:
Interest and fees on loans	$	50,660	$	49,804	$	49,201		$	47,921	$	46,062
Interest and dividends on securities available for sale:
U. S. government sponsored enterprises		909		906		750			672		691
State and political subdivisions		1		-		1			-		1
Mortgage-backed securities and collateralized mortgage obligations - residential		1,451		1,494		1,533			1,485		1,543
Corporate bonds		362		476		477			473		516
Small Business Administration - guaranteed participation securities		94		100		102			107		111
Other securities		2		3		3			2		3
Total interest and dividends on securities available for sale		2,819		2,979		2,866			2,739		2,865

Interest on held to maturity securities:
Mortgage-backed securities and collateralized mortgage obligations - residential		65		68		70			73		75
Total interest on held to maturity securities		65		68		70			73		75

Federal Home Loan Bank stock		147		152		149			131		110

Interest on federal funds sold and other short-term investments		6,894		6,750		6,354			6,688		6,970
Total interest income		60,585		59,753		58,640			57,552		56,082

Interest expense:
Interest on deposits:
Interest-bearing checking		288		240		165			102		49
Savings		675		712		707			639		655
Money market deposit accounts		2,228		2,342		2,500			2,384		1,756
Time deposits		19,400		19,677		16,460			11,962		9,291
Interest on short-term borrowings		206		204		201			244		279
Total interest expense		22,797		23,175		20,033			15,331		12,030

Net interest income		37,788		36,578		38,607			42,221		44,052

Less: Provision (Credit) for credit losses		500		600		1,350			100		(500	)
Net interest income after provision (credit) for credit losses		37,288		35,978		37,257			42,121		44,552

Noninterest income:
Trustco Financial Services income		1,609		1,816		1,612			1,627		1,412
Fees for services to customers		2,399		2,745		2,563			2,590		2,847
Unrealized gains recognized on equity securities		1,360		-		-			-		-
Other		283		282		299			357		339
Total noninterest income		5,651		4,843		4,474			4,574		4,598

Noninterest expenses:
Salaries and employee benefits		12,520		11,427		12,444			12,393		13,122
Net occupancy expense		4,375		4,611		4,209			4,358		4,262
Equipment expense		1,990		1,738		1,852			1,923		1,873
Professional services		1,570		1,460		1,561			1,717		1,360
Outsourced services		2,755		2,501		2,532			2,720		2,491
Advertising expense		466		408		384			586		518
FDIC and other insurance		797		1,094		1,085			1,078		1,085
Other real estate expense (income), net		16		74		(12	)		163		148
Other		1,970		1,590		4,776			2,522		2,468
Total noninterest expenses		26,459		24,903		28,831			27,460		27,327

Income before taxes		16,480		15,918		12,900			19,235		21,823
Income taxes		3,929		3,792		3,052			4,555		5,451

Net income	$	12,551	$	12,126	$	9,848		$	14,680	$	16,372

Net income per common share:
- Basic	$	0.66	$	0.64	$	0.52		$	0.77	$	0.86

- Diluted		0.66		0.64		0.52			0.77		0.86

Average basic shares (in thousands)		19,022		19,024		19,024			19,024		19,024
Average diluted shares (in thousands)		19,033		19,032		19,026			19,024		19,024

Page | 7

CONSOLIDATED STATEMENTS OF INCOME, Continued

(dollars in thousands, except per share data)

(Unaudited)

	Six Months Ended
	06/30/24		06/30/23
Interest and dividend income:
Interest and fees on loans	$	100,464		90,334
Interest and dividends on securities available for sale:
U. S. government sponsored enterprises		1,815		1,383
State and political subdivisions		1		1
Mortgage-backed securities and collateralized mortgage obligations - residential		2,945		3,128
Corporate bonds		838		1,037
Small Business Administration - guaranteed participation securities		194		228
Other securities		5		5
Total interest and dividends on securities available for sale		5,798		5,782

Interest on held to maturity securities:
Mortgage-backed securities-residential		133		153
Total interest on held to maturity securities		133		153

Federal Home Loan Bank stock		299		220

Interest on federal funds sold and other short-term investments		13,644		13,525
Total interest income		120,338		110,014

Interest expense:
Interest on deposits:
Interest-bearing checking		528		115
Savings		1,387		1,185
Money market deposit accounts		4,570		2,570
Time deposits		39,077		14,563
Interest on short-term borrowings		410		564
Total interest expense		45,972		18,997

Net interest income		74,366		91,017

Less: Provision (Credit) for credit losses		1,100		(200	)
Net interest income after provision (credit) for credit losses		73,266		91,217

Noninterest income:
Trustco Financial Services income		3,425		3,186
Fees for services to customers		5,144		5,495
Unrealized gains recognized on equity securities		1,360		-
Other		565		586
Total noninterest income		10,494		9,267

Noninterest expenses:
Salaries and employee benefits		23,947		26,405
Net occupancy expense		8,986		8,860
Equipment expense		3,728		3,835
Professional services		3,030		2,967
Outsourced services		5,256		4,787
Advertising expense		874		908
FDIC and other insurance		1,891		2,137
Other real estate expense, net		90		373
Other		3,560		4,734
Total noninterest expenses		51,362		55,006

Income before taxes		32,398		45,478
Income taxes		7,721		11,360

Net income	$	24,677		34,118

Net income per common share:
- Basic	$	1.30		1.79

- Diluted		1.30		1.79

Average basic shares (in thousands)		19,023		19,024
Average diluted shares (in thousands)		19,033		19,025

Page | 8

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

(dollars in thousands)

(Unaudited)

	6/30/2024			3/31/2024			12/31/2023			9/30/2023			6/30/2023
ASSETS:

Cash and due from banks	$	42,193		$	44,868		$	49,274		$	45,940		$	55,662
Federal funds sold and other short term investments		493,920			564,815			528,730			461,321			547,695
Total cash and cash equivalents		536,113			609,683			578,004			507,261			603,357

Securities available for sale:
U. S. government sponsored enterprises		106,796			128,854			118,668			121,474			113,570
States and political subdivisions		26			26			26			34			34
Mortgage-backed securities and collateralized mortgage obligations - residential		218,311			227,078			237,677			233,719			243,444
Small Business Administration - guaranteed participation securities		15,592			16,260			17,186			17,316			18,382
Corporate bonds		53,764			53,341			78,052			76,935			76,618
Other securities		688			682			680			657			656
Total securities available for sale		395,177			426,241			452,289			450,135			452,704

Held to maturity securities:
Mortgage-backed securities and collateralized mortgage obligations-residential		5,921			6,206			6,458			6,724			7,043
Total held to maturity securities		5,921			6,206			6,458			6,724			7,043

Federal Reserve Bank and Federal Home Loan Bank stock		6,507			6,203			6,203			6,203			6,203

Loans:
Commercial		282,441			279,092			273,515			268,642			251,434
Residential mortgage loans		4,370,640			4,354,369			4,365,063			4,343,006			4,310,005
Home equity line of credit		370,063			355,879			347,415			332,028			308,976
Installment loans		15,168			16,166			16,886			16,605			16,396
Loans, net of deferred net costs		5,038,312			5,005,506			5,002,879			4,960,281			4,886,811

Less: Allowance for credit losses on loans		49,772			49,220			48,578			47,226			46,914
Net loans		4,988,540			4,956,286			4,954,301			4,913,055			4,839,897

Bank premises and equipment, net		33,466			33,423			34,007			32,135			32,351
Operating lease right-of-use assets		38,376			39,647			40,542			41,475			43,113
Other assets		102,544			101,881			96,387			97,310			90,957

Total assets	$	6,106,644		$	6,179,570		$	6,168,191		$	6,054,298		$	6,075,625

LIABILITIES:
Deposits:
Demand	$	745,227		$	742,997		$	754,532		$	773,293		$	791,353
Interest-bearing checking		1,029,606			1,020,136			1,015,213			1,033,898			1,082,989
Savings accounts		1,144,427			1,155,517			1,179,241			1,235,658			1,315,893
Money market deposit accounts		517,445			532,611			565,767			610,012			625,253
Time deposits		1,840,262			1,903,908			1,836,024			1,581,504			1,442,959
Total deposits		5,276,967			5,355,169			5,350,777			5,234,365			5,258,447

Short-term borrowings		89,720			94,374			88,990			103,110			113,765
Operating lease liabilities		42,026			43,438			44,471			45,418			47,172
Accrued expenses and other liabilities		42,763			37,399			38,668			47,479			34,852

Total liabilities		5,451,476			5,530,380			5,522,906			5,430,372			5,454,236

SHAREHOLDERS’ EQUITY:
Capital stock		20,058			20,058			20,058			20,058			20,058
Surplus		257,490			257,335			257,181			257,078			257,078
Undivided profits		436,048			430,346			425,069			422,082			414,251
Accumulated other comprehensive loss, net of tax		(14,268	)		(14,763	)		(13,237	)		(31,506	)		(26,212	)
Treasury stock at cost		(44,160	)		(43,786	)		(43,786	)		(43,786	)		(43,786	)

Total shareholders’ equity		655,168			649,190			645,285			623,926			621,389

Total liabilities and shareholders’ equity	$	6,106,644		$	6,179,570		$	6,168,191		$	6,054,298		$	6,075,625

Outstanding shares (in thousands)		19,010			19,024			19,024			19,024			19,024

Page | 9

NONPERFORMING ASSETS

(dollars in thousands)

(Unaudited)

	6/30/2024			3/31/2024			12/31/2023			9/30/2023			6/30/2023
Nonperforming Assets

New York and other states*
Loans in nonaccrual status:
Commercial	$	741		$	532		$	536		$	540		$	545
Real estate mortgage - 1 to 4 family		14,992			14,359			14,375			14,633			16,260
Installment		131			149			151			93			124
Total non-accrual loans		15,864			15,040			15,062			15,266			16,929
Other nonperforming real estate mortgages - 1 to 4 family		-			-			3			5			7
Total nonperforming loans		15,864			15,040			15,065			15,271			16,936
Other real estate owned		2,334			2,334			194			1,185			1,412
Total nonperforming assets	$	18,198		$	17,374		$	15,259		$	16,456		$	18,348

Florida
Loans in nonaccrual status:
Commercial	$	314		$	314		$	314		$	314		$	314
Real estate mortgage - 1 to 4 family		2,985			2,921			2,272			2,228			2,170
Installment		22			-			15			65			-
Total non-accrual loans		3,321			3,235			2,601			2,607			2,484
Other nonperforming real estate mortgages - 1 to 4 family		-			-			-			-			-
Total nonperforming loans		3,321			3,235			2,601			2,607			2,484
Other real estate owned		-			-			-			-			-
Total nonperforming assets	$	3,321		$	3,235		$	2,601		$	2,607		$	2,484

Total
Loans in nonaccrual status:
Commercial	$	1,055		$	846		$	850		$	854		$	859
Real estate mortgage - 1 to 4 family		17,977			17,280			16,647			16,861			18,430
Installment		153			149			166			158			124
Total non-accrual loans		19,185			18,275			17,663			17,873			19,413
Other nonperforming real estate mortgages - 1 to 4 family		-			-			3			5			7
Total nonperforming loans		19,185			18,275			17,666			17,878			19,420
Other real estate owned		2,334			2,334			194			1,185			1,412
Total nonperforming assets	$	21,519		$	20,609		$	17,860		$	19,063		$	20,832

Quarterly Net (Recoveries) Chargeoffs

New York and other states*
Commercial	$	-		$	-		$	-		$	-		$	(129	)
Real estate mortgage - 1 to 4 family		(74	)		(78	)		219			(26	)		(161	)
Installment		(2	)		36			23			14			21
Total net (recoveries) chargeoffs	$	(76	)	$	(42	)	$	242		$	(12	)	$	(269	)

Florida
Commercial	$	-		$	-		$	-		$	-		$	-
Real estate mortgage - 1 to 4 family		17			-			-			-			-
Installment		7			-			6			-			40
Total net (recoveries) chargeoffs	$	24		$	-		$	6		$	-		$	40

Total
Commercial	$	-		$	-		$	-		$	-		$	(129	)
Real estate mortgage - 1 to 4 family		(57	)		(78	)		219			(26	)		(161	)
Installment		5			36			29			14			61
Total net (recoveries) chargeoffs	$	(52	)	$	(42	)	$	248		$	(12	)	$	(229	)

Asset Quality Ratios

Total nonperforming loans (1)	$	19,185		$	18,275		$	17,666		$	17,878		$	19,420
Total nonperforming assets (1)		21,519			20,609			17,860			19,063			20,832
Total net (recoveries) chargeoffs (2)		(52	)		(42	)		248			(12	)		(229	)

Allowance for credit losses on loans (1)		49,772			49,220			48,578			47,226			46,914

Nonperforming loans to total loans		0.38	%		0.37	%		0.35	%		0.36	%		0.40	%
Nonperforming assets to total assets		0.35	%		0.33	%		0.29	%		0.31	%		0.34	%
Allowance for credit losses on loans to total loans		0.99	%		0.98	%		0.97	%		0.95	%		0.96	%
Coverage ratio (1)		259.4	%		269.3	%		275.0	%		264.2	%		241.6	%
Annualized net (recoveries) chargeoffs to average loans (2)		0.00	%		0.00	%		0.02	%		0.00	%		-0.02	%
Allowance for credit losses on loans to annualized net chargeoffs (2)		N/A			N/A			49.0	x		N/A			N/A

* Includes New York, New Jersey, Vermont and Massachusetts.

(1) At period-end

(2) For the three-month period ended

Page | 10

DISTRIBUTION OF ASSETS, LIABILITIES AND SHAREHOLDERS’ EQUITY -

INTEREST RATES AND INTEREST DIFFERENTIAL

dollars in thousands)
(Unaudited)	Three months ended								Three months ended
	June 30, 2024								June 30, 2023
	Average			Interest		Average			Average			Interest		Average
	Balance					Rate			Balance					Rate
Assets

Securities available for sale:
U. S. government sponsored enterprises	$	113,844		$	909		3.20	%	$	120,646		$	691		2.29	%
Mortgage backed securities and collateralized mortgage obligations - residential		250,517			1,451		2.30			278,367			1,543		2.20
State and political subdivisions		26			1		6.75			34			1		6.74
Corporate bonds		55,065			362		2.63			85,344			516		2.42
Small Business Administration - guaranteed participation securities		17,436			94		2.15			20,724			111		2.15
Other		694			2		1.15			686			3		1.75

Total securities available for sale		437,582			2,819		2.58			505,801			2,865		2.27

Federal funds sold and other short-term Investments		506,493			6,894		5.48			551,087			6,970		5.07

Held to maturity securities:
Mortgage backed securities and collateralized mortgage obligations - residential		6,054			65		4.28			7,204			75		4.17

Total held to maturity securities		6,054			65		4.28			7,204			75		4.17

Federal Home Loan Bank stock		6,340			147		9.27			5,868			110		7.50

Commercial loans		280,559			3,765		5.37			249,040			3,295		5.29
Residential mortgage loans		4,359,232			40,819		3.75			4,269,295			37,992		3.56
Home equity lines of credit		364,210			5,814		6.42			303,134			4,533		6.00
Installment loans		15,395			262		6.86			15,734			242		6.16

Loans, net of unearned income		5,019,396			50,660		4.04			4,837,203			46,062		3.81

Total interest earning assets		5,975,865		$	60,585		4.06			5,907,163		$	56,082		3.80

Allowance for credit losses on loans		(49,454	)							(47,060	)
Cash & non-interest earning assets		181,688								172,821

Total assets	$	6,108,099							$	6,032,924

Liabilities and shareholders’ equity

Deposits:
Interest bearing checking accounts	$	1,009,048		$	288		0.11	%	$	1,083,795		$	49		0.02	%
Money market accounts		524,068			2,228		1.71			613,204			1,756		1.15
Savings		1,145,922			675		0.24			1,352,181			655		0.19
Time deposits		1,873,139			19,400		4.17			1,372,248			9,291		2.72

Total interest bearing deposits		4,552,177			22,591		2.00			4,421,428			11,751		1.07
Short-term borrowings		93,703			206		0.89			124,089			279		0.90

Total interest bearing liabilities		4,645,880		$	22,797		1.97			4,545,517		$	12,030		1.06

Demand deposits		735,262								788,654
Other liabilities		76,258								79,839
Shareholders’ equity		650,699								618,914

Total liabilities and shareholders’ equity	$	6,108,099							$	6,032,924

Net interest income, GAAP and non-GAAP tax equivalent (1)				$	37,788							$	44,052

Net interest spread, GAAP and non-GAAP tax equivalent (1)							2.09	%							2.74	%

Net interest margin (net interest income to total interest earning assets), GAAP and non-GAAP tax equivalent (1)							2.53	%							2.98	%

Tax equivalent adjustment (1)					-								-

Net interest income				$	37,788							$	44,052

(1) Tax equivalent adjustment to a measure results in a non-GAAP financial measure. See Non-GAAP Financial Measures Reconciliation.

Page | 11

DISTRIBUTION OF ASSETS, LIABILITIES AND SHAREHOLDERS’ EQUITY -

INTEREST RATES AND INTEREST DIFFERENTIAL, Continued

(dollars in thousands)
(Unaudited)	Six Months Ended								Six Months Ended
	June 30, 2024								June 30, 2023
	Average			Interest		Average			Average			Interest		Average
	Balance					Rate			Balance					Rate
Assets

Securities available for sale:
U. S. government sponsored enterprises	$	119,908		$	1,815		3.03	%	$	120,669		$	1,383		2.29	%
Mortgage backed securities and collateralized mortgageobligations - residential		254,665			2,945		2.31			282,683			3,128		2.21
State and political subdivisions		26			1		6.82			34			1		6.74
Corporate bonds		64,345			838		2.60			85,460			1,037		2.43
Small Business Administration - guaranteed participation securities		17,830			194		2.18			21,423			228		2.13
Other		695			5		1.44			686			5		1.46

Total securities available for sale		457,469			5,798		2.53			510,955			5,782		2.26

Federal funds sold and other short-term Investments		502,072			13,644		5.47			563,938			13,525		4.84

Held to maturity securities:
Mortgage backed securities and collateralized mortgage obligations - residential		6,192			133		4.29			7,372			153		4.16

Total held to maturity securities		6,192			133		4.29			7,372			153		4.16

Federal Home Loan Bank stock		6,271			299		9.54			5,833			220		7.54

Commercial loans		278,871			7,425		5.33			243,983			6,319		5.18
Residential mortgage loans		4,359,351			81,236		3.73			4,241,207			74,906		3.54
Home equity lines of credit		358,607			11,277		6.32			297,262			8,652		5.87
Installment loans		15,761			526		6.72			14,535			457		6.35

Loans, net of unearned income		5,012,590			100,464		4.01			4,796,987			90,334		3.77

Total interest earning assets		5,984,594		$	120,338		4.03			5,885,085		$	110,014		3.75

Allowance for credit losses on loans		(49,139	)							(46,677	)
Cash & non-interest earning assets		188,364								173,990

Total assets	$	6,123,819							$	6,012,398

Liabilities and shareholders’ equity

Deposits:
Interest bearing checking accounts	$	999,589			528		0.11	%	$	1,108,452			115		0.02	%
Money market accounts		534,378			4,570		1.72			607,064			2,570		0.85
Savings		1,152,241			1,387		0.24			1,403,924			1,185		0.17
Time deposits		1,881,535			39,077		4.18			1,267,193			14,563		2.32

Total interest bearing deposits		4,567,743			45,562		2.01			4,386,633			18,433		0.85
Short-term borrowings		93,510			410		0.88			127,957			564		0.89

Total interest bearing liabilities		4,661,253		$	45,972		1.98			4,514,590		$	18,997		0.85

Demand deposits		730,781								802,533
Other liabilities		83,105								81,954
Shareholders’ equity		648,680								613,321

Total liabilities and shareholders’ equity	$	6,123,819							$	6,012,398

Net interest income, GAAP and non-GAAP tax equivalent (1)				$	74,366							$	91,017

Net interest spread, GAAP and non-GAAP tax equivalent (1)							2.05	%							2.90	%

Net interest margin (net interest income to total interest earning assets), GAAP and non-GAAP tax equivalent (1)							2.48	%							3.10	%

Tax equivalent adjustment (1)					-								-

Net interest income				$	74,366							$	91,017

(1) Tax equivalent adjustment to a measure results in a non-GAAP financial measure. See Non-GAAP Financial Measures Reconciliation.

Page | 12

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.

Net interest income is commonly presented on a taxable equivalent basis. That is, to the extent that some component of the institution’s net interest income will be exempt from taxation (e.g., was received by the institution as a result of its holdings of state or municipal obligations), an amount equal to the tax benefit derived from that component is added back to the net interest income total. Management considers this adjustment helpful to investors in comparing one financial institution’s net interest income (pre- tax) to that of another institution, as each will have a different proportion of tax-exempt items in their portfolios. Moreover, net interest income is itself a component of another financial measure commonly used by financial institutions, net interest margin, which is the ratio of net interest income to average interest earning assets. Additionally, management and many financial institutions also present net interest spread, which is the average yield on interest earning assets minus the average rate paid on interest bearing liabilities. For purposes of these measures as well, taxable equivalent net interest income is generally used by financial institutions, again to provide investors with a better basis of comparison from institution to institution. We calculate taxable equivalent net interest margin by dividing net interest income, adjusted to include the benefit of non-taxable interest income, by average interest earning assets. We calculate taxable equivalent net interest spread as the difference between average yield on interest earning assets, adjusted to include the benefit of non-taxable interest income, and the average rate paid on interest bearing liabilities.

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 unrealized gains recognized on equity securities. 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 equity as a percentage of tangible assets, and efficiency ratio to the most directly comparable GAAP measures is set forth below. We have not presented a reconciliation of taxable equivalent net interest income, taxable equivalent net interest margin or taxable equivalent net interest spread to the most directly comparable GAAP measure, as there was no difference between the taxable equivalent measure and comparable GAAP measure for any period presented in this release.

Page | 13

NON-GAAP FINANCIAL MEASURES RECONCILIATION

(dollars in thousands)

(Unaudited)

	6/30/2024			3/31/2024			6/30/2023
Tangible Book Value Per Share

Equity (GAAP)	$	655,168		$	649,190		$	621,389
Less: Intangible assets		553			553			553
Tangible equity (Non-GAAP)	$	654,615		$	648,637		$	620,836

Shares outstanding		19,010			19,024			19,024
Tangible book value per share		34.44			34.10			32.63
Book value per share		34.46			34.12			32.66

Tangible Equity to Tangible Assets
Total Assets (GAAP)	$	6,106,644		$	6,179,570		$	6,075,625
Less: Intangible assets		553			553			553
Tangible assets (Non-GAAP)	$	6,106,091		$	6,179,017		$	6,075,072

Tangible Equity to Tangible Assets (Non-GAAP)		10.72	%		10.50	%		10.22	%
Equity to Assets (GAAP)		10.73	%		10.51	%		10.23	%

	Three months ended									Six Months Ended
Efficiency Ratio	6/30/2024			3/31/2024			6/30/2023			6/30/2024			6/30/2023

Net interest income (GAAP)	$	37,788		$	36,578		$	44,052		$	74,366		$	91,017
Taxable equivalent adjustment		-			-			-			-			-
Net interest income (fully taxable equivalent) (Non-GAAP)		37,788			36,578			44,052			74,366			91,017
Non-interest income (GAAP)		5,651			4,843			4,598			10,494			9,267
Less: Unrealized gains recognized on equity securities		1,360			-			-			1,360			-
Revenue used for efficiency ratio (Non-GAAP)	$	42,079		$	41,421		$	48,650		$	83,500		$	100,284

Total noninterest expense (GAAP)	$	26,459		$	24,903		$	27,327		$	51,362		$	55,006
Less: Other real estate expense, net		16			74			148			90			373
Expense used for efficiency ratio (Non-GAAP)	$	26,443		$	24,829		$	27,179		$	51,272		$	54,633

Efficiency Ratio		62.84	%		59.94	%		55.87	%		61.40	%		54.48	%

Page | 14

Document and Entity Information	Jul. 22, 2024
Cover [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Jul. 22, 2024
Entity File Number	0-10592
Entity Registrant Name	TrustCo Bank Corp NY
Entity Central Index Key	0000357301
Entity Incorporation, State or Country Code	NY
Entity Tax Identification Number	14-1630287
Entity Address, Address Line One	5 SARNOWSKI DRIVE
Entity Address, City or Town	GLENVILLE
Entity Address, State or Province	NY
Entity Address, Postal Zip Code	12302
City Area Code	518
Local Phone Number	377-3311
Title of 12(b) Security	Common Stock, $1.00 par value
Trading Symbol	TRST
Security Exchange Name	NASDAQ
Entity Emerging Growth Company	false
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false