Trustco Caps Year of Efficiency, Strength, and Value - Reports Fourth Quarter 2024 Net Income of $11.3 Million; $48.8 Million for the Year

Executive Snapshot: Continued solid financial results: Key metrics for the fourth quarter 2024: Net income of $11.3 million versus $9.8 million for the fourth quarter 2023Net interest income of $38.9 million, up from $38.6 million compared to the fourth quarter 2023Return on average assets (ROAA) of 0.73% versus 0.64% for the fourth quarter 2023Return on average equity (ROAE) of 6.70% versus 6.21% for the fourth quarter 2023 Capital continues to grow: Consolidated equity to assets increased 3.6% to 10.84% as of December 31, 2024 from 10.46% as of December 31, 2023Book value per share as of December 31, 2024 was $35.56, up from $33.92 as of December 31, 2023 Average Loan and Deposit portfolios continue to grow:On average, total loans were up $104.9 million or 2.1% for the fourth quarter 2024 compared to the fourth quarter 2023On average, total deposits were up $31.7 million or 0.6% for the fourth quarter 2024 compared to the fourth quarter 2023 GLENVILLE, N.Y., Jan. 21, 2025 (GLOBE NEWSWIRE) -- TrustCo Bank Corp NY (TrustCo, NASDAQ: TRST) today announced fourth quarter 2024 net income of $11.3 million or $0.59 diluted earnings per share, compared to net income of $9.8 million or $0.52 diluted earnings per share for the fourth quarter 2023; and net income of $48.8 million or $2.57 diluted earnings per share for the full year 2024, compared to net income of $58.6 million or $3.08 diluted earnings per share for the full year 2023. Average loans increased $104.9 million or 2.1% for the fourth quarter 2024 over the same period in 2023. TrustCo continued to increase the balances of home equity lines of credit (HECLs) outstanding through an aggressive campaign to encourage existing customers to utilize their HECLs in place of higher rate loan products. The objective is to meet customer needs and encourage increased utilization through existing HECLs. Overview Chairman, President, and CEO, Robert J. McCormick said, “The story of Trustco Bank for 2024 is one of efficiency, strength, and shareholder value. For the year, we controlled costs, resisted the temptation to chase deposits with rate, improved our already strong capital position, and delivered a meaningful return to our owners in the form of dividends and price appreciation. Year over year, the Company’s quarterly net income, net interest income, return on average assets, and return on average equity all grew. Likewise, credit quality remained impressive and, in classic Home Town Bank fashion, we leveraged customer relationships to create lending volume in the form of home equity loans. We come into 2025 well-capitalized, liquid, and ready to lend.” Details Average loans were up $104.9 million, or 2.1%, in the fourth quarter 2024 over the same period in 2023. Average residential loans and home equity lines of credit, our primary lending focus, were up $34.9 million, or 0.8%, and $61.0 million, or 17.9%, respectively, in the fourth quarter 2024 over the same period in 2023. Average commercial loans also increased $11.7 million, or 4.3%, in the fourth quarter 2024 over the same period in 2023. Average deposits were up $31.7 million, or 0.6%, for the fourth quarter 2024 over the same period in 2023 primarily as a result of an increase in time deposits. We believe the increase in time deposits compared to the same period in 2023 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, while earning a competitive interest rate. As we move forward, the objective is to encourage customers to retain these additional funds in the expanded product offerings of Trustco Bank (the “Bank”) through aggressive marketing and product differentiation. Net interest income was $38.9 million for the fourth quarter 2024, an increase of $295 thousand, or 0.8%, compared to the fourth quarter of 2023, driven by loan growth at higher interest rates, partially offset by lower investment interest income and a decrease in interest on federal funds sold and other short-term investments. The net interest margin for the fourth quarter 2024 was 2.15%, down 6 basis points from 2.21% in the fourth quarter of 2023. The yield on interest earnings assets increased to 4.12%, up 1 basis point from 4.11% in the third quarter of 2024, and up 19 basis points from 3.93% in the fourth quarter of 2023. The cost of interest bearing liabilities increased to 1.97% in the fourth quarter 2024, up only 3 basis points from 1.94% in the third quarter of 2024, and up from 1.72% in the fourth quarter 2023. The Federal Reserve’s decision in upcoming meetings will have an effect on the Bank’s ability to continue to manage deposit costs. Further reductions should help margin expansion in future quarters. Non-interest expense decreased $666 thousand over the fourth quarter of 2023, consistent with the decline in FTE’s over the last year. Asset quality remains strong and has been consistent over the past twelve months. The Company recorded a provision for credit losses of $400 thousand in the fourth quarter of 2024, which is the result of a provision for credit losses on loans of $400 thousand. The ratio of allowance for credit losses on loans to total loans was 0.99% and 0.97% as of December 31, 2024 and 2023, respectively. The allowance for credit losses on loans was $50.2 million at December 31, 2024, compared to $48.6 million at December 31, 2023. Nonperforming loans (NPLs) were $18.8 million at December 31, 2024, compared to $17.7 million at December 31, 2023. NPLs were 0.37% and 0.35% of total loans at December 31, 2024 and 2023, respectively. The coverage ratio, or allowance for credit losses on loans to NPLs, was 267.3% at December 31, 2024, compared to 275.0% at December 31, 2023. Nonperforming assets (NPAs) were $21.0 million at December 31, 2024, compared to $21.9 million at September 30, 2024 and $17.9 million at December 31, 2023. At December 31, 2024, our equity to asset ratio was 10.84%, compared to 10.46% at December 31, 2023. Book value per share at December 31, 2024 was $35.56, up 4.8% compared to $33.92 a year earlier. A conference call to discuss fourth quarter 2024 results will be held at 9:00 a.m. Eastern Time on January 22, 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 645488. 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 619481. The call will also be audio webcast at https://events.q4inc.com/attendee/773359679, and will be available for one year. About TrustCo Bank Corp NY TrustCo Bank Corp NY is a $6.2 billion savings and loan holding company and through its subsidiary, Trustco Bank, operated 136 offices in New York, New Jersey, Vermont, Massachusetts, and Florida at December 31, 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. 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, and the growth of loans and deposits throughout our branch network. 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; an increase in the prevalence of fraud and other financial crimes; 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 adoption of artificial intelligence tools by us and/or our third-party vendors and service providers; 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, including our upcoming annual report on Form 10-K for fiscal 2024. 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. Subsidiary: Trustco Bank Contact: Robert LeonardExecutive Vice President(518) 381-3693 TRUSTCO BANK CORP NYGLENVILLE, NY FINANCIAL HIGHLIGHTS (dollars in thousands, except per share data)(Unaudited) Three months ended 12/31/2024 9/30/2024 12/31/2023Summary of operations Net interest income $38,902 $38,671 $38,607 Provision for credit losses 400 500 1,350 Net gains on equity securities - 23 - Noninterest income, excluding net gains on equity securities 4,409 4,908 4,474 Noninterest expense 28,165 26,200 28,831 Net income 11,281 12,875 9,848 Per share Net income per share: - Basic $0.59 $0.68 $0.52 - Diluted 0.59 0.68 0.52 Cash dividends 0.36 0.36 0.36 Book value at period end 35.56 35.19 33.92 Market price at period end 33.31 33.07 31.05 At period end Full time equivalent employees 737 735 750 Full service banking offices 136 138 140 Performance ratios Return on average assets 0.73% 0.84% 0.64 Return on average equity 6.70 7.74 6.21 Efficiency ratio (1) 65.03 60.09 66.92 Adjusted Efficiency ratio (1) 63.93 59.65 60.16 Net interest spread 2.15 2.17 2.21 Net interest margin 2.60 2.61 2.60 Dividend payout ratio 60.70 53.16 69.54 Capital ratios at period end Consolidated equity to assets 10.84% 10.95% 10.46 Consolidated tangible equity to tangible assets (1) 10.83% 10.94% 10.45 Asset quality analysis at period end Nonperforming loans to total loans 0.37% 0.38% 0.35 Nonperforming assets to total assets 0.34 0.36 0.29 Allowance for credit losses on loans to total loans 0.99 0.99 0.97 Coverage ratio (2) 2.7x 2.6x 2.7x (1) Non-GAAP Financial Measure, see Non-GAAP Financial Measures Reconciliation.(2) Calculated as allowance for credit losses on loans divided by total nonperforming loans. FINANCIAL HIGHLIGHTS, Continued (dollars in thousands, except per share data) (Unaudited) Year Ended 12/31/24 12/31/23Summary of operations Net interest income$ 151,939 171,845 Provision for credit losses 2,000 1,250 Net gains on equity securities 1,383 - Noninterest income, excluding net gains on equity securities 18,451 18,315 Noninterest expense 105,727 111,297 Net income 48,833 58,646 Per share Net income per share: - Basic$ 2.57 3.08 - Diluted 2.57 3.08 Cash dividends 1.44 1.44 Book value at period end 35.56 33.92 Market price at period end 33.31 31.05 Performance ratios Return on average assets 0.80% 0.97 Return on average equity 7.43 9.46 Efficiency ratio (1) 61.55 58.53 Adjusted Efficiency ratio (1) 61.60 56.72 Net interest spread 2.10 2.64 Net interest margin 2.54 2.91 Dividend payout ratio 56.09 46.71 (1) Non-GAAP Financial Measure, see Non-GAAP Financial Measures Reconciliation. CONSOLIDATED STATEMENTS OF INCOME (dollars in thousands, except per share data) (Unaudited) Three months ended 12/31/2024 9/30/2024 6/30/2024 3/31/2024 12/31/2023Interest and dividend income: Interest and fees on loans $53,024 $52,112 $50,660 $49,804 $49,201 Interest and dividends on securities available for sale: U. S. government sponsored enterprises 680 718 909 906 750 State and political subdivisions - - 1 - 1 Mortgage-backed securities and collateralized mortgage obligations - residential 1,418 1,397 1,451 1,494 1,533 Corporate bonds 358 361 362 476 477 Small Business Administration - guaranteed participation securities 84 90 94 100 102 Other securities 6 2 2 3 3 Total interest and dividends on securities available for sale 2,546 2,568 2,819 2,979 2,866 Interest on held to maturity securities: obligations - residential 59 62 65 68 70 Total interest on held to maturity securities 59 62 65 68 70 Federal Home Loan Bank stock 152 153 147 152 149 Interest on federal funds sold and other short-term investments 6,128 6,174 6,894 6,750 6,354 Total interest income 61,909 61,069 60,585 59,753 58,640 Interest expense: Interest on deposits: Interest-bearing checking 397 311 288 240 165 Savings 719 770 675 712 707 Money market deposit accounts 2,024 2,154 2,228 2,342 2,500 Time deposits 19,680 18,969 19,400 19,677 16,460 Interest on short-term borrowings 187 194 206 204 201 Total interest expense 23,007 22,398 22,797 23,175 20,033 Net interest income 38,902 38,671 37,788 36,578 38,607 Less: Provision for credit losses 400 500 500 600 1,350 Net interest income after provision for credit losses 38,502 38,171 37,288 35,978 37,257 Noninterest income: Trustco Financial Services income 1,778 2,044 1,609 1,816 1,612 Fees for services to customers 2,226 2,482 2,399 2,745 2,563 Net gains on equity securities - 23 1,360 - - Other 405 382 283 282 299 Total noninterest income 4,409 4,931 5,651 4,843 4,474 Noninterest expenses: Salaries and employee benefits 12,068 12,134 12,520 11,427 12,444 Net occupancy expense 4,563 4,271 4,375 4,611 4,209 Equipment expense 2,404 1,757 1,990 1,738 1,852 Professional services 1,782 1,863 1,570 1,460 1,561 Outsourced services 3,051 2,551 2,755 2,501 2,532 Advertising expense 590 339 466 408 384 FDIC and other insurance 1,113 1,112 797 1,094 1,085 Other real estate expense (income), net 476 204 16 74 (12) Other 2,118 1,969 1,970 1,590 4,776 Total noninterest expenses 28,165 26,200 26,459 24,903 28,831 Income before taxes 14,746 16,902 16,480 15,918 12,900 Income taxes 3,465 4,027 3,929 3,792 3,052 Net income $11,281 $12,875 $12,551 $12,126 $9,848 Net income per common share: - Basic $0.59 $0.68 $0.66 $0.64 $0.52 - Diluted 0.59 0.68 0.66 0.64 0.52 Average basic shares (in thousands) 19,015 19,010 19,022 19,024 19,024 Average diluted shares (in thousands) 19,045 19,036 19,033 19,032 19,026 CONSOLIDATED STATEMENTS OF INCOME, Continued (dollars in thousands, except per share data)(Unaudited) Year Ended 12/31/24 12/31/23Interest and dividend income: Interest and fees on loans$ 205,600 187,456 Interest and dividends on securities available for sale: U. S. government sponsored enterprises 3,213 2,805 State and political subdivisions 1 2 Mortgage-backed securities and collateralized mortgage obligations - residential 5,760 6,146 Corporate bonds 1,557 1,987 Small Business Administration - guaranteed participation securities 368 437 Other securities 13 10 Total interest and dividends on securities available for sale 10,912 11,387 Interest on held to maturity securities: Mortgage-backed securities-residential 254 296 Total interest on held to maturity securities 254 296 Federal Home Loan Bank stock 604 500 Interest on federal funds sold and other short-term investments 25,946 26,567 Total interest income 243,316 226,206 Interest expense: Interest on deposits: Interest-bearing checking 1,236 382 Savings 2,876 2,531 Money market deposit accounts 8,748 7,454 Time deposits 77,726 42,985 Interest on short-term borrowings 791 1,009 Total interest expense 91,377 54,361 Net interest income 151,939 171,845 Less: Provision for credit losses 2,000 1,250 Net interest income after provision for credit losses 149,939 170,595 Noninterest income: Trustco Financial Services income 7,247 6,425 Fees for services to customers 9,852 10,648 Net gains on equity securities 1,383 - Other 1,352 1,242 Total noninterest income 19,834 18,315 Noninterest expenses: Salaries and employee benefits 48,149 51,242 Net occupancy expense 17,820 17,427 Equipment expense 7,889 7,610 Professional services 6,675 6,245 Outsourced services 10,858 10,039 Advertising expense 1,803 1,878 FDIC and other insurance 4,116 4,300 Other real estate expense, net 770 524 Other 7,647 12,032 Total noninterest expenses 105,727 111,297 Income before taxes 64,046 77,613 Income taxes 15,213 18,967 Net income$ 48,833 58,646 Net income per common share: - Basic$ 2.57 3.08 - Diluted 2.57 3.08 Average basic shares (in thousands) 19,018 19,024 Average diluted shares (in thousands) 19,037 19,025 CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (dollars in thousands)(Unaudited) 12/31/2024 9/30/2024 6/30/2024 3/31/2024 12/31/2023ASSETS: Cash and due from banks $47,364 $49,659 $42,193 $44,868 $49,274 Federal funds sold and other short term investments 594,448 473,306 493,920 564,815 528,730 Total cash and cash equivalents 641,812 522,965 536,113 609,683 578,004 Securities available for sale: U. S. government sponsored enterprises 85,617 90,588 106,796 128,854 118,668 States and political subdivisions 18 26 26 26 26 Mortgage-backed securities and collateralized mortgage obligations - residential 213,128 222,841 218,311 227,078 237,677 Small Business Administration - guaranteed participation securities 14,141 15,171 15,592 16,260 17,186 Corporate bonds 44,581 54,327 53,764 53,341 78,052 Other securities 700 701 688 682 680 Total securities available for sale 358,185 383,654 395,177 426,241 452,289 Held to maturity securities: Mortgage-backed securities and collateralized mortgage obligations-residential 5,365 5,636 5,921 6,206 6,458 Total held to maturity securities 5,365 5,636 5,921 6,206 6,458 Federal Reserve Bank and Federal Home Loan Bank stock 6,507 6,507 6,507 6,203 6,203 Loans: Commercial 286,857 280,261 282,441 279,092 273,515 Residential mortgage loans 4,388,302 4,382,674 4,370,640 4,354,369 4,365,063 Home equity line of credit 409,261 393,418 370,063 355,879 347,415 Installment loans 13,638 14,503 15,168 16,166 16,886 Loans, net of deferred net costs 5,098,058 5,070,856 5,038,312 5,005,506 5,002,879 Less: Allowance for credit losses on loans 50,248 49,950 49,772 49,220 48,578 Net loans 5,047,810 5,020,906 4,988,540 4,956,286 4,954,301 Bank premises and equipment, net 33,782 33,324 33,466 33,423 34,007 Operating lease right-of-use assets 36,627 37,958 38,376 39,647 40,542 Other assets 108,656 98,730 102,544 101,881 96,387 Total assets $6,238,744 $6,109,680 $6,106,644 $6,179,570 $6,168,191 LIABILITIES: Deposits: Demand $762,101 $753,878 $745,227 $742,997 $754,532 Interest-bearing checking 1,027,540 988,527 1,029,606 1,020,136 1,015,213 Savings accounts 1,086,534 1,092,038 1,144,427 1,155,517 1,179,241 Money market deposit accounts 465,049 477,113 517,445 532,611 565,767 Time deposits 2,049,759 1,952,635 1,840,262 1,903,908 1,836,024 Total deposits 5,390,983 5,264,191 5,276,967 5,355,169 5,350,777 Short-term borrowings 84,781 91,450 89,720 94,374 88,990 Operating lease liabilities 40,159 41,469 42,026 43,438 44,471 Accrued expenses and other liabilities 46,478 43,549 42,763 37,399 38,668 Total liabilities 5,562,401 5,440,659 5,451,476 5,530,380 5,522,906 SHAREHOLDERS' EQUITY: Capital stock 20,097 20,058 20,058 20,058 20,058 Surplus 258,874 257,644 257,490 257,335 257,181 Undivided profits 446,503 442,079 436,048 430,346 425,069 Accumulated other comprehensive loss, net of tax (3,861) (6,600) (14,268) (14,763) (13,237)Treasury stock at cost (45,270) (44,160) (44,160) (43,786) (43,786) Total shareholders' equity 676,343 669,021 655,168 649,190 645,285 Total liabilities and shareholders' equity $6,238,744 $6,109,680 $6,106,644 $6,179,570 $6,168,191 Outstanding shares (in thousands) 19,020 19,010 19,010 19,024 19,024 NONPERFORMING ASSETS (dollars in thousands)(Unaudited) 12/31/20249/30/20246/30/20243/31/202412/31/2023Nonperforming Assets New York and other states* Loans in nonaccrual status: Commercial $343 $466 $741 $532 $536 Real estate mortgage - 1 to 4 family 14,671 15,320 14,992 14,359 14,375 Installment 108 163 131 149 151 Total non-accrual loans 15,122 15,949 15,864 15,040 15,062 Other nonperforming real estate mortgages - 1 to 4 family - - - - 3 Total nonperforming loans 15,122 15,949 15,864 15,040 15,065 Other real estate owned 2,175 2,503 2,334 2,334 194 Total nonperforming assets $17,297 $18,452 $18,198 $17,374 $15,259 Florida Loans in nonaccrual status: Commercial $- $314 $314 $314 $314 Real estate mortgage - 1 to 4 family 3,656 3,176 2,985 2,921 2,272 Installment 22 5 22 - 15 Total non-accrual loans 3,678 3,495 3,321 3,235 2,601 Other nonperforming real estate mortgages - 1 to 4 family - - - - - Total nonperforming loans 3,678 3,495 3,321 3,235 2,601 Other real estate owned - - - - - Total nonperforming assets $3,678 $3,495 $3,321 $3,235 $2,601 Total Loans in nonaccrual status: Commercial $343 $780 $1,055 $846 $850 Real estate mortgage - 1 to 4 family 18,327 18,496 17,977 17,280 16,647 Installment 130 168 153 149 166 Total non-accrual loans 18,800 19,444 19,185 18,275 17,663 Other nonperforming real estate mortgages - 1 to 4 family - - - - 3 Total nonperforming loans 18,800 19,444 19,185 18,275 17,666 Other real estate owned 2,175 2,503 2,334 2,334 194 Total nonperforming assets $20,975 $21,947 $21,519 $20,609 $17,860 Quarterly Net Chargeoffs (Recoveries) New York and other states* Commercial $62 $65 $- $- $- Real estate mortgage - 1 to 4 family (316) 104 (74) (78) 219 Installment 41 11 (2) 36 23 Total net (recoveries) chargeoffs $(213)$180 $(76)$(42)$242 Florida Commercial $314 $- $- $- $- Real estate mortgage - 1 to 4 family - - 17 - - Installment 1 42 7 - 6 Total net chargeoffs $315 $42 $24 $- $6 Total Commercial $376 $65 $- $- $- Real estate mortgage - 1 to 4 family (316) 104 (57) (78) 219 Installment 42 53 5 36 29 Total net chargeoffs (recoveries) $102 $222 $(52)$(42)$248 Asset Quality Ratios Total nonperforming loans (1) $18,800 $19,444 $19,185 $18,275 $17,666 Total nonperforming assets (1) 20,975 21,947 21,519 20,609 17,860 Total net chargeoffs (recoveries) (2) 102 222 (52) (42) 248 Allowance for credit losses on loans (1) 50,248 49,950 49,772 49,220 48,578 Nonperforming loans to total loans 0.37% 0.38% 0.38% 0.37% 0.35%Nonperforming assets to total assets 0.34% 0.36% 0.35% 0.33% 0.29%Allowance for credit losses on loans to total loans 0.99% 0.99% 0.99% 0.98% 0.97%Coverage ratio (1) 267.3% 256.9% 259.4% 269.3% 275.0%Annualized net (recoveries) chargeoffs to average loans (2) 0.01% 0.02% 0.00% 0.00% 0.02%Allowance for credit losses on loans to annualized net chargeoffs (2) 123.2x56.3xN/AN/A49.0x * 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, 2024 December 31, 2023 Average InterestAverage Average InterestAverage Balance Rate Balance Rate Assets Securities available for sale: U. S. government sponsored enterprises $88,125 $6803.09% $125,572 $7502.39% Mortgage backed securities and collateralized mortgage obligations - residential 238,771 1,4182.36 267,341 1,5332.28 State and political subdivisions 23 -6.35 32 16.62 Corporate bonds 50,025 3582.86 80,207 4772.38 Small Business Administration - guaranteed participation securities 15,693 842.15 18,990 1022.15 Other 700 63.43 689 31.74 Total securities available for sale 393,337 2,5462.59 492,831 2,8662.33 Federal funds sold and other short-term Investments 504,458 6,1284.83 461,889 6,3545.46 Held to maturity securities: Mortgage backed securities and collateralized mortgage obligations - residential 5,501 594.31 6,591 704.25 Total held to maturity securities 5,501 594.31 6,591 704.25 Federal Home Loan Bank stock 6,507 1529.34 6,203 1499.61 Commercial loans 285,303 3,8695.42 273,622 3,5895.25 Residential mortgage loans 4,388,567 42,4863.87 4,353,660 40,0093.68 Home equity lines of credit 401,636 6,4226.36 340,670 5,3386.22 Installment loans 13,741 2477.14 16,359 2656.44 Loans, net of unearned income 5,089,247 53,0244.16 4,984,311 49,2013.94 Total interest earning assets 5,999,050 $61,9094.12 5,951,825 $58,6403.93 Allowance for credit losses on loans (50,342) (47,458) Cash & non-interest earning assets 190,341 169,791 Total assets $6,139,049 $6,074,158 Liabilities and shareholders' equity Deposits: Interest bearing checking accounts $994,786 $3970.16% $1,004,744 $1650.07% Money market accounts 469,784 2,0241.71 586,025 2,5001.69 Savings 1,085,952 7190.26 1,205,388 7070.23 Time deposits 2,000,563 19,6803.91 1,720,871 16,4603.79 Total interest bearing deposits 4,551,085 22,8201.99 4,517,028 19,8321.74 Short-term borrowings 84,136 1870.88 92,529 2010.86 Total interest bearing liabilities 4,635,221 $23,0071.97 4,609,557 $20,0331.72 Demand deposits 751,747 754,078 Other liabilities 82,738 81,297 Shareholders' equity 669,343 629,226 Total liabilities and shareholders' equity $6,139,049 $6,074,158 Net interest income $38,902 $38,607 Net interest spread 2.15% 2.21% Net interest margin (net interest income to total interest earning assets) 2.60% 2.60% DISTRIBUTION OF ASSETS, LIABILITIES AND SHAREHOLDERS' EQUITY -INTEREST RATES AND INTEREST DIFFERENTIAL, Continued (dollars in thousands) (Unaudited) Year Ended Year Ended December 31, 2024 December 31, 2023 Average InterestAverage Average InterestAverage Balance Rate Balance Rate Assets Securities available for sale: U. S. government sponsored enterprises $105,729 3,2133.04% $121,574 2,8052.31% Mortgage backed securities and collateralized mortgage obligations - residential 247,466 5,7602.33 275,565 6,1462.23 State and political subdivisions 25 16.69 33 26.71 Corporate bonds 58,447 1,5572.66 82,865 1,9872.40 Small Business Administration - guaranteed participation securities 17,003 3682.17 20,410 4372.14 Other 698 131.86 686 101.46 Total securities available for sale 429,368 10,9122.54 501,133 11,3872.27 Federal funds sold and other short-term Investments 493,546 25,9465.26 521,021 26,5675.10 Held to maturity securities: Mortgage backed securities and collateralized mortgage obligations - residential 5,916 2544.29 7,053 2964.20 Total held to maturity securities 5,916 2544.29 7,053 2964.20 Federal Home Loan Bank stock 6,389 6049.45 6,018 5008.31 Commercial loans 280,566 15,1015.38 255,666 13,3065.20 Residential mortgage loans 4,370,582 165,5333.79 4,290,241 154,2353.60 Home equity lines of credit 374,841 23,9446.39 313,914 18,9366.03 Installment loans 14,926 1,0226.85 15,345 9796.38 Loans, net of unearned income 5,040,915 205,6004.08 4,875,166 187,4563.84 Total interest earning assets 5,976,134 243,3164.07 5,910,391 226,2063.83 Allowance for credit losses on loans (49,648) (46,971) Cash & non-interest earning assets 188,748 172,641 Total assets $6,115,234 $6,036,061 Liabilities and shareholders' equity Deposits: Interest bearing checking accounts $998,501 1,2360.12% $1,067,972 3820.04% Money market accounts 509,409 8,7481.72 606,230 7,4541.23 Savings 1,128,190 2,8760.25 1,323,995 2,5310.19 Time deposits 1,911,116 77,7264.07 1,437,336 42,9852.99 Total interest bearing deposits 4,547,216 90,5861.99 4,435,533 53,3521.20 Short-term borrowings 89,707 7910.88 114,639 1,0090.88 Total interest bearing liabilities 4,636,923 91,3771.97 4,550,172 54,3611.19 Demand deposits 738,816 784,021 Other liabilities 82,398 81,656 Shareholders' equity 657,097 620,212 Total liabilities and shareholders' equity $6,115,234 $6,036,061 Net interest income 151,939 171,845 Net interest spread 2.10% 2.64% Net interest margin (net interest income to total interest earning assets) 2.54% 2.91% 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 and adjusted efficiency ratio are non-GAAP measures of expense control relative to revenue from net interest income and non-interest fee income. We calculate the efficiency ratio by dividing total non-interest expense by the sum of net interest income and total non-interest income. We calculate the adjusted efficiency ratio by dividing total noninterest expenses as determined under GAAP, excluding other real estate expense, net, strategic branch closing costs, and a non-recurring expense related to the settlement of a class action lawsuit, by net interest income and total noninterest income as determined under GAAP, excluding gain/loss on the disposal of assets from strategic branch closures from this calculation and net gains 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 book value to shares outstanding, 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. NON-GAAP FINANCIAL MEASURES RECONCILIATION (dollars in thousands) (Unaudited) 12/31/20249/30/202412/31/2023 Tangible Book Value Per Share Equity (GAAP) $676,343 $669,021 $645,285 Less: Intangible assets 553 553 553 Tangible equity (Non-GAAP) $675,790 $668,468 $644,732 Shares outstanding 19,020 19,010 19,024 Tangible book value per share 35.53 35.16 33.89 Book value per share 35.56 35.19 33.92 Tangible Equity to Tangible Assets Total Assets (GAAP) $6,238,744 $6,109,680 $6,168,191 Less: Intangible assets 553 553 553 Tangible assets (Non-GAAP) $6,238,191 $6,109,127 $6,167,638 Tangible Equity to Tangible Assets (Non-GAAP) 10.83% 10.94% 10.45% Equity to Assets (GAAP) 10.84% 10.95% 10.46% Three months ended Year EndedEfficiency and Adjusted Efficiency Ratios 12/31/20249/30/20246/30/202412/31/2023 12/31/202412/31/2023 Net interest income (GAAP)A$38,902 $38,671 $37,788 $38,607 $151,939 $171,845 Non-interest income (GAAP)B 4,409 4,931 5,651 4,474 19,834 18,315 Add: Non-recurring lossC - - - 101 - 101 Less: Net gains on equity securitiesD - 23 1,360 - 1,383 - Revenue used for efficiency ratio (Non-GAAP)E$43,311 $43,579 $42,079 $43,182 $170,390 $190,261 Total noninterest expense (GAAP)F$28,165 $26,200 $26,459 $28,831 $105,727 $111,297 Less: Branch closure expenseG - - - 114 - 114 Less: Non-recurring expensesH - - - 2,750 - 2,750 Less: Other real estate expense (income), netI 476 204 16 (12) 770 524 Expense used for efficiency ratio (Non-GAAP)J$27,689 $25,996 $26,443 $25,979 $104,957 $107,909 Efficiency Ratio(F)/(A+B) 65.03% 60.09% 60.91% 66.92% 61.55% 58.53%Adjusted Efficiency RatioJ/E 63.93% 59.65% 62.84% 60.16% 61.60% 56.72%

Trustco Caps Year of Efficiency, Strength, and Value - Reports Fourth Quarter 2024 Net Income of $11.3 Million; $48.8 Million for the Year

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