GlobeNewswire Inc | Apr 21, 2021 04:00PM EDT

April 21, 2021

GLENVILLE, N.Y., April 21, 2021 (GLOBE NEWSWIRE) -- TrustCo Bank Corp NY (TrustCo, NASDAQ: TRST) today announced first quarter 2021 net income of $14.1 million or $0.146 diluted earnings per share. Average residential loan growth increased 5.2% or $187.5 million for the first quarter 2021 compared to the first quarter 2020.

SummaryRobert J. McCormick, Chairman, President and Chief Executive Officer noted, Trustco Bank has remained a hometown bank for thousands of our customers and community members during one of our nations most challenging years. Over the last year, we prioritized strengthening our communities and adapting our offerings to address the changing needs of our customers during the COVID-19 pandemic. Despite the uncertainty, our reliable and consistent approach has left us well-positioned to help our customers through this economic disruption and turmoil.

Overall we are very pleased to share that TrustCo now has assets in excess of $6 billion. Our Northeast region has steadfastly maintained our core franchise in an area that we have served for decades. Additionally, our Florida region passed two major milestones, reaching over $1 billion in deposits and $1 billion in loans. Our Financial Services Department also has over $1 billion in assets under management. As we enter a traditionally busy season for residential lending, the Bank is ready to deploy its existing liquidity into our residential loan portfolio and we will be paying close attention to how the market changes.

We also continue to closely monitor the impact of the pandemic on our business and results of operations. We have been encouraged to see that most of our residential and commercial borrowers who had payment deferral arrangements with us have returned to making regular loan payments. As of March 31, 2021, loans in deferral were not material. Additionally, the Bank had funded 663 Paycheck Protection Program (PPP) loans totaling $46 million in 2020, and an additional $17 million in the first quarter of 2021. As of March 31, 2021, 531 PPP loans totaling $37 million remain outstanding.

Details

Average loans were up $173.3 million or 4.3% in the first quarter 2021 over the same period in 2020. Average residential loans, our primary lending focus, were up $187.5 million, or 5.2%, in the first quarter 2021 over the same period in 2020. Average deposits were up $630.3 million or 14.2% for the first quarter 2021 over the same period a year earlier. The increase in deposits was the result of a $738.2 million or 24.1% 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 $108.0 million or 7.9%, for the first quarter 2021 over the same period in 2020. Within the core deposits, checking balances were up $428.4 million or 32.2% (including interest bearing and non-interest bearing checking balances), money market balances were up $111.4 million or 18.1%, and savings balances were up $198.5 million or 17.8%. 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 TrustCos 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 0.21% in the first quarter 2021 from 0.79% in the first quarter 2020. A significant portion of our CD portfolio (time deposits) repriced during the last year, which resulted in a decrease in average rates to 0.54% in the first quarter of 2021 from 1.88% in the first quarter of 2020, as a result of the ongoing market conditions. The net interest margin for the first quarter 2021 was 2.78%, down 27 basis points from 3.05% in the first quarter of 2020. This was primarily due to the decrease in market rates throughout 2020 resulting in less interest earned on our short-term funds, residential and variable rate loans.

The Bank continued to demonstrate its ability to grow shareholders equity as average equity was up $28.6 million or 5.3% in the first quarter of 2021 compared to the same period in 2020. Return on average assets and return on average equity for the first quarter 2021 were 0.96% and 10.01%, respectively, compared to 1.03% and 9.87% for the first quarter 2020. Improving efficiencies to reduce costs continues to remain a key area of focus.

Asset quality and loan loss reserve measures have stayed consistent. Nonperforming loans (NPLs) were $21.6 million at March 31, 2021, compared to $20.7 million at March 31, 2020. NPLs were 0.51% of total loans at March 31, 2021 and 2020, respectively. The coverage ratio, or allowance for loan losses to NPLs, was 231.1% at March 31, 2021, compared to 222.5% at March 31, 2020. Nonperforming assets (NPAs) were $22.1 million at March 31, 2021, compared to $22.0 million at March 31, 2020. The ratio of allowance for loan losses to total loans was 1.17% as of March 31, 2021, compared to 1.13% at March 31, 2020. The allowance for loan losses was $50.0 million at March 31, 2021, compared to $46.2 million at March 31, 2020. The provision for loan losses decreased to $350 thousand for the first quarter 2021 compared to $2 million in the same period in the prior year, primarily driven by the beginning of the uncertainty in the economic environment resulting from the COVID-19 pandemic in the same period in the prior year. 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 intends to adopt CECL on January 1, 2022.

Net recoveries for the first quarter 2021 were $46 thousand versus net chargeoffs in the first quarter 2020 of $162 thousand. The annualized net chargeoffs ratio was 0.00% and 0.02% for the first quarter 2021 and 2020, respectively.

At March 31, 2021 the tangible equity to tangible asset ratio was 9.44%, compared to 10.42% at March 31, 2020. Book value per share at March 31, 2021 was $5.92, up 4.2% compared to $5.68 a year earlier.

TrustCo Bank Corp NY is a $6.0 billion savings and loan holding company and through its subsidiary, Trustco Bank, operated 148 offices in New York, New Jersey, Vermont, Massachusetts, and Florida at March 31, 2021.

In addition, the Banks 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 first quarter 2021results will be held at 9:00 a.m. Eastern Time on April 22, 2021. Those wishing to participate in the call may dial toll-free 1-888-339-0764. International callers must dial 1-412-902-4195. Please ask to be joined into the TrustCo Bank Corp NY / TRST call. A replay of the call will be available for thirty days by dialing 1-877-344-7529 (1-412-317-0088 for international callers), Conference Number 10153602. The call will also be audio webcast at: https://services.choruscall.com/links/trst210422.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 2020, 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 expectations with respect to the effect of our proposed reverse stock split of our common stock, including the impact of such split on the trading price of our common stock, our expectations with respect to our online and mobile banking product offerings, our expectations for the repricing of our CD portfolio, 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 TrustCos actual results and could cause TrustCos 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; 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; 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; unanticipated effects from the Tax Cut and Jobs Act that may limit its benefits or adversely impact our business; 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; changes in local market areas and general business and economic trends, as well as changes in consumer spending and saving habits; 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 NYGLENVILLE, NY

FINANCIAL HIGHLIGHTS

(dollars in thousands, except per share data)(Unaudited) Three months ended 3/31/ 12/31/ 3/31/ 2021 2020 2020Summary of operations Net interest income (TE) $ 40,107 39,182 38,554Provision for loan losses 350 600 2,000Noninterest income 4,428 4,069 5,334Noninterest expense 25,335 24,830 24,268Net income 14,083 13,814 13,313 Per common share Net income per share: - Basic $ 0.146 0.143 0.138- Diluted 0.146 0.143 0.138Cash dividends 0.068 0.068 0.068Book value at period end 5.92 5.89 5.68Market price at period end 7.37 6.67 5.41 At period end Full time equivalent employees 820 778 813Full service banking offices 148 148 148 Performance ratios Return on average assets 0.96 % 0.95 1.03Return on average equity 10.01 9.75 9.87Efficiency (1) 56.35 57.31 56.34Net interest spread (TE) 2.74 2.72 2.91Net interest margin (TE) 2.78 2.79 3.05Dividend payout ratio 46.65 47.55 49.41 Capital ratios at period end Consolidated tangible equity to tangible 9.44 % 9.62 10.42assets (2)Consolidated equity to assets 9.44 % 9.63 10.43 Asset quality analysis at period end Nonperforming loans to total loans 0.51 0.50 0.51Nonperforming assets to total assets 0.36 0.37 0.42Allowance for loan losses to total loans 1.17 1.17 1.13Coverage ratio (3) 2.3x 2.4x 2.2x

(1) Non-GAAP measure; calculated as noninterest expense (excluding ORE income/expense) divided by taxableequivalent net interest income plus noninterest income.(2) Non-GAAP measure; calculated as total equity less $553 of intangible assets divided by total assets less$553 of intangible assets.(3) Calculated as allowance for loan losses divided by total nonperforming loans.

TE = Taxable equivalent

CONSOLIDATED STATEMENTS OF INCOME (dollars in thousands, except per share data)(Unaudited) Three months ended 3/31/ 12/31/ 9/30/ 6/30/ 3/31/ 2021 2020 2020 2020 2020Interest and dividend income:Interest and fees on $ 40,217 40,906 41,330 41,665 42,063loansInterest and dividendson securities available for sale:U. S. government 50 27 14 106 421sponsored enterprisesState and political 1 2 1 2 1subdivisionsMortgage-backedsecurities andcollateralized mortgage 1,237 1,172 1,319 1,527 2,113obligations -residentialCorporate bonds 316 349 646 488 238Small BusinessAdministration -guaranteed 206 212 216 229 245participationsecuritiesOther securities 6 7 5 5 6Total interest anddividends on securities 1,816 1,769 2,201 2,357 3,024available for sale Interest on held to maturity securities:Mortgage-backedsecurities andcollateralized mortgage 123 129 138 162 175obligations -residentialTotal interest on held 123 129 138 162 175to maturity securities Federal Reserve Bankand Federal Home Loan 69 70 77 192 82Bank stock Interest on federalfunds sold and other 270 246 242 193 1,267short-term investmentsTotal interest income 42,495 43,120 43,988 44,569 46,611 Interest expense: Interest on deposits: Interest-bearing 52 51 55 26 16checkingSavings 159 156 161 166 233Money market deposit 283 447 637 862 1,096accountsTime deposits 1,666 3,053 4,749 5,599 6,391Interest on short-term 228 232 221 235 322borrowingsTotal interest expense 2,388 3,939 5,823 6,888 8,058 Net interest income 40,107 39,181 38,165 37,681 38,553 Less: Provision for 350 600 1,000 2,000 2,000loan lossesNet interest incomeafter provision for 39,757 38,581 37,165 35,681 36,553loan losses Noninterest income: Trustco Financial 2,035 1,527 1,784 1,368 1,600Services incomeFees for services to 2,204 2,365 2,292 1,807 2,315customersNet gain on securities - - - - 1,155transactionsOther 189 177 265 251 264Total noninterest 4,428 4,069 4,341 3,426 5,334income Noninterest expenses: Salaries and employee 12,425 11,727 10,899 11,648 11,373benefitsNet occupancy expense 4,586 4,551 4,277 4,385 4,306Equipment expense 1,631 1,621 1,607 1,606 1,802Professional services 1,432 1,644 1,311 1,182 1,481Outsourced services 2,250 1,925 1,875 1,875 2,075Advertising expense 354 527 305 601 488FDIC and other 707 657 660 609 294insuranceOther real estate 239 45 (115 ) (32 ) 194expense (income), netOther 1,711 2,133 1,855 2,058 2,255Total noninterest 25,335 24,830 22,674 23,932 24,268expenses Income before taxes 18,850 17,820 18,832 15,175 17,619Income taxes 4,767 4,006 4,761 3,921 4,306 Net income $ 14,083 13,814 14,071 11,254 13,313 Net income per common share:- Basic $ 0.146 0.143 0.146 0.117 0.138 - Diluted 0.146 0.143 0.146 0.117 0.138 Average basic shares 96,435 96,433 96,433 96,433 96,727(in thousands)Average diluted shares 96,465 96,442 96,440 96,437 96,750(in thousands) Note: Taxableequivalent net interest $ 40,107 39,182 38,166 37,681 38,554income

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

(dollars in thousands)(Unaudited) 3/31/2021 12/31/ 9/30/2020 6/30/2020 3/31/2020 2020ASSETS: Cash and due $ 45,493 47,196 47,703 44,726 43,362 from banksFederal fundssold and other 1,094,880 1,059,903 908,616 908,110 492,691 short terminvestmentsTotal cash and 1,140,373 1,107,099 956,319 952,836 536,053 cash equivalents Securitiesavailable for sale:U. S. governmentsponsored 74,465 19,968 29,996 - 54,970 enterprisesStates andpolitical 48 103 111 111 112 subdivisionsMortgage-backedsecurities andcollateralized 348,317 316,158 309,768 331,469 352,067 mortgageobligations -residentialSmall BusinessAdministration -guaranteed 39,232 42,217 44,070 45,998 46,768 participationsecuritiesCorporate bonds 64,839 59,939 70,113 54,439 48,564 Other securities 686 686 685 685 685 Total securitiesavailable for 527,587 439,071 454,743 432,702 503,166 sale Held to maturity securities:Mortgage-backedsecurities andcollateralized 12,729 13,824 15,094 16,633 17,720 mortgageobligations -residentialTotal held tomaturity 12,729 13,824 15,094 16,633 17,720 securities Federal ReserveBank and Federal 5,506 5,506 5,506 5,506 9,183 Home Loan Bankstock Loans: Commercial 217,021 212,492 231,663 231,212 195,805 Residential 3,807,837 3,780,167 3,724,746 3,681,898 3,627,121 mortgage loansHome equity line 235,644 242,194 248,320 254,445 265,753 of creditInstallment 8,670 9,617 9,826 10,006 10,713 loansLoans, net ofdeferred net 4,269,172 4,244,470 4,214,555 4,177,561 4,099,392 costs Less: Allowance 49,991 49,595 49,123 48,144 46,155 for loan lossesNet loans 4,219,181 4,194,875 4,165,432 4,129,417 4,053,237 Bank premisesand equipment, 34,012 34,412 34,417 34,042 34,428 netOperating leaseright-of-use 46,614 47,885 47,174 48,712 49,955 assetsOther assets 60,455 59,124 57,244 57,155 52,905 Total assets $ 6,046,457 5,901,796 5,735,929 5,677,003 5,256,647 LIABILITIES: Deposits: Demand $ 718,343 652,756 635,345 612,960 480,255 Interest-bearing 1,141,595 1,086,558 1,024,290 1,001,592 895,254 checkingSavings accounts 1,362,141 1,285,501 1,235,259 1,191,682 1,122,116 Money market 719,580 716,005 699,132 666,304 617,198 deposit accountsTime deposits 1,231,263 1,296,373 1,305,024 1,392,769 1,367,005 Total deposits 5,172,922 5,037,193 4,899,050 4,865,307 4,481,828 Short-term 229,950 214,755 193,455 177,278 148,090 borrowingsOperating lease 51,449 52,784 52,125 53,710 54,998 liabilitiesAccrued expensesand other 21,105 28,903 30,771 27,287 23,546 liabilities Total 5,475,426 5,333,635 5,175,401 5,123,582 4,708,462 liabilities SHAREHOLDERS' EQUITY:Capital stock 100,218 100,205 100,205 100,205 100,205 Surplus 176,500 176,442 176,441 176,437 176,431 Undivided 321,486 313,974 306,741 299,239 294,553 profitsAccumulatedothercomprehensive 7,268 11,936 11,537 11,936 11,392 income, net oftaxTreasury stock (34,441 ) (34,396 ) (34,396 ) (34,396 ) (34,396 )at cost Totalshareholders' 571,031 568,161 560,528 553,421 548,185 equity Totalliabilities and $ 6,046,457 5,901,796 5,735,929 5,677,003 5,256,647 shareholders'equity Outstandingshares (in 96,440 96,433 96,433 96,433 96,433 thousands)

NONPERFORMING ASSETS (dollars in thousands)(Unaudited) 3/31/ 12/31/ 9/30/ 6/30/ 3/31/ 2021 2020 2020 2020 2020Nonperforming Assets New York and other states*Loans in nonaccrual status:Commercial $ 125 452 491 571 630 Real estate mortgage - 1 19,826 19,379 19,977 20,215 18,570 to 4 familyInstallment 32 43 49 6 24 Total non-accrual loans 19,983 19,874 20,517 20,792 19,224 Other nonperforming realestate mortgages - 1 to 4 22 23 25 26 27 familyTotal nonperforming loans 20,005 19,897 20,542 20,818 19,251 Other real estate owned 420 541 423 830 1,284 Total nonperforming $ 20,425 20,438 20,965 21,648 20,535 assets Florida Loans in nonaccrual status:Commercial $ - - - - - Real estate mortgage - 1 1,626 1,187 1,254 1,111 1,492 to 4 familyInstallment - - - - - Total non-accrual loans 1,626 1,187 1,254 1,111 1,492 Other nonperforming realestate mortgages - 1 to 4 - - - - - familyTotal nonperforming loans 1,626 1,187 1,254 1,111 1,492 Other real estate owned - - - - - Total nonperforming $ 1,626 1,187 1,254 1,111 1,492 assets Total Loans in nonaccrual status:Commercial $ 125 452 491 571 630 Real estate mortgage - 1 21,452 20,566 21,231 21,326 20,062 to 4 familyInstallment 32 43 49 6 24 Total non-accrual loans 21,609 21,061 21,771 21,903 20,716 Other nonperforming realestate mortgages - 1 to 4 22 23 25 26 27 familyTotal nonperforming loans 21,631 21,084 21,796 21,929 20,743 Other real estate owned 420 541 423 830 1,284 Total nonperforming $ 22,051 21,625 22,219 22,759 22,027 assets Quarterly Net (Recoveries) Chargeoffs New York and other states*Commercial $ (32 ) 32 (1 ) (6 ) 1 Real estate mortgage - 1 (2 ) (27 ) 4 (27 ) 140 to 4 familyInstallment (14 ) 109 18 44 4 Total net (recoveries) $ (48 ) 114 21 11 145 chargeoffs Florida Commercial $ - - - - - Real estate mortgage - 1 - (1 ) - - (2 )to 4 familyInstallment 2 15 - - 19 Total net (recoveries) $ 2 14 - - 17 chargeoffs Total Commercial $ (32 ) 32 (1 ) (6 ) 1 Real estate mortgage - 1 (2 ) (28 ) 4 (27 ) 138 to 4 familyInstallment (12 ) 124 18 44 23 Total net (recoveries) $ (46 ) 128 21 11 162 chargeoffs Asset Quality Ratios Total nonperforming loans $ 21,631 21,084 21,796 21,929 20,743 (1)Total nonperforming 22,051 21,625 22,219 22,759 22,027 assets (1)Total net (recoveries) (46 ) 128 21 11 162 chargeoffs (2) Allowance for loan losses 49,991 49,595 49,123 48,144 46,155 (1) Nonperforming loans to 0.51 % 0.50 % 0.52 % 0.52 % 0.51 %total loansNonperforming assets to 0.36 % 0.37 % 0.39 % 0.40 % 0.42 %total assetsAllowance for loan losses 1.17 % 1.17 % 1.17 % 1.15 % 1.13 %to total loansCoverage ratio (1) 231.1 % 235.2 % 225.4 % 219.5 % 222.5 %Annualized net(recoveries) chargeoffs 0.00 % 0.01 % 0.00 % 0.00 % 0.02 %to average loans (2)Allowance for loan lossesto annualized net N/A 96.9x 584.8x 1094.2x 71.2x (recoveries) chargeoffs(2)

* 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 March 31, 2021 March 31, 2020 Average Interest Average Average Interest Average Balance Rate Balance Rate Assets Securitiesavailable for sale:U. S.government $ 51,649 50 0.38 % $ 92,369 421 1.82 %sponsoredenterprisesMortgagebackedsecurities andcollateralized 327,614 1,237 1.51 371,768 2,113 2.27 mortgageobligations -residentialState andpolitical 50 1 6.47 114 2 7.59 subdivisionsCorporate 63,334 316 1.99 28,332 238 3.36 bondsSmall BusinessAdministration- guaranteed 39,582 206 2.09 47,418 245 2.06 participationsecuritiesOther 686 6 3.50 685 6 3.50 Totalsecurities 482,915 1,816 1.50 540,686 3,025 2.26 available forsale Federal fundssold and other 1,029,570 270 0.11 412,076 1,267 1.24 short-termInvestments Held tomaturity securities:Mortgagebackedsecurities andcollateralized 13,273 123 3.70 18,144 175 3.86 mortgageobligations -residential Total held tomaturity 13,273 123 3.70 18,144 175 3.86 securities FederalReserve Bankand Federal 5,506 69 5.01 9,183 82 3.57 Home Loan Bankstock Commercial 212,781 2,945 5.54 198,047 2,542 5.13 loansResidential 3,789,256 34,852 3.69 3,601,728 36,461 4.05 mortgage loansHome equitylines of 238,379 2,259 3.84 265,461 2,868 4.35 creditInstallment 8,795 161 7.41 10,717 192 7.20 loans Loans, net ofunearned 4,249,211 40,217 3.80 4,075,953 42,063 4.13 income Total interest 5,780,475 42,495 2.95 5,056,042 46,612 3.69 earning assets Allowance for (49,945 ) (44,520 ) loan lossesCash &non-interest 199,769 193,619 earning assets Total assets $ 5,930,299 $ 5,205,141 Liabilitiesand shareholders'equity Deposits: Interestbearing $ 1,084,572 52 0.02 % $ 871,153 16 0.01 %checkingaccountsMoney market 725,570 283 0.16 614,201 1,096 0.72 accountsSavings 1,315,049 159 0.05 1,116,558 233 0.08 Time deposits 1,261,963 1,666 0.54 1,369,914 6,391 1.88 Total interestbearing 4,387,154 2,160 0.20 3,971,826 7,736 0.78 depositsShort-term 223,807 228 0.41 153,668 322 0.84 borrowings Total interestbearing 4,610,961 2,388 0.21 4,125,494 8,058 0.79 liabilities Demand 673,428 458,476 depositsOther 75,143 79,003 liabilitiesShareholders' 570,767 542,168 equity Totalliabilitiesand $ 5,930,299 $ 5,205,141 shareholders'equity Net interestincome, tax 40,107 38,554 equivalent Net interest 2.74 % 2.91 %spread Net interestmargin (netinterestincome to 2.78 % 3.05 %total interestearningassets) Tax equivalent - (1 ) adjustment Net interest 40,107 38,553 income

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) 3/31/2021 12/31/ 3/31/2020 2020 Tangible Equity to Tangible Assets Total Assets (GAAP) $ 6,046,457 5,901,796 5,256,647 Less: Intangible assets 553 553 553 Tangible assets (Non-GAAP) 6,045,904 5,901,243 5,256,094 Equity (GAAP) 571,031 568,161 548,185 Less: Intangible assets 553 553 553 Tangible equity (Non-GAAP) 570,478 567,608 547,632 Tangible Equity to Tangible Assets 9.44 % 9.62 % 10.42 %(Non-GAAP)Equity to Assets (GAAP) 9.44 % 9.63 % 10.43 % Three months endedEfficiency Ratio 3/31/2021 12/31/ 3/31/2020 2020 Net interest income (fully taxable $ 40,107 39,182 38,554 equivalent) (Non-GAAP)Non-interest income (GAAP) 4,428 4,069 5,334 Less: Net gain on securities - - 1,155 Revenue used for efficiency ratio 44,535 43,251 42,733 (Non-GAAP) Total noninterest expense (GAAP) 25,335 24,830 24,268 Less: Other real estate expense 239 45 194 (income), netExpense used for efficiency ratio 25,096 24,785 24,074 (Non-GAAP) Efficiency Ratio 56.35 % 57.31 % 56.34 %

Subsidiary: Trustco Bank

Robert LeonardContact: Executive Vice President and Chief Risk Officer (518) 381-3693