Exhibit 99(a)

5 Sarnowski Drive, Glenville, New York, 12302

FOR IMMEDIATE RELEASE:

TrustCo Reports Historic Performance – Past and Present;

Net Income of $17.9 Million up 24% over the Prior Year Quarter

Glenville, New York –July 21, 2022

TrustCo Bank Corp NY (TrustCo, NASDAQ: TRST) today announced second quarter 2022 net income of $17.9 million or $0.933 diluted earnings per share, compared to net income of $14.4 million or $0.748 diluted earnings per share for the second quarter 2021; and net income of $35.0 million or $1.822 diluted earnings per share for the six months ended June 30, 2022, compared to net income of $28.5 million or $1.478 diluted earnings per share for the six months ended June 30, 2021.

Overview

Noting that Trustco Bank marked its 120^th year serving the community this June by ringing Nasdaq’s opening bell on June 13, 2022, Robert J. McCormick, Chairman, President and Chief Executive Officer said “The long-sustained success and strong financial performance of TrustCo Bank Corp NY truly is something to be celebrated.  With events from Times Square in New York City to our historic main office in Schenectady, New York, this quarter we have honored the leaders that came before us building not just a strong bank, but enduring community bonds, and touted our strategic plan for weathering a low interest rate environment.  We are very pleased to report today that these efforts have culminated in another quarter of record earnings and very positive loan growth.”

Details

Average loans were up $196.2 million or 4.6% in the second quarter 2022 over the same period in 2021.  Average residential loans, our primary lending focus, were up $202.0 million, or 5.3%, in the second quarter 2022 over the same period in 2021.  Average deposits were up $153.1 million or 2.9% for the second quarter 2022 over the same period a year earlier.  The increase in deposits was the result of a $382.6 million or 9.5% 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 $229.5 million or 19.2%, for the second quarter 2022 over the same period in 2021.  Within the core deposits, checking balances were up $152.0 million or 8.0% (including interest bearing and non-interest bearing checking balances), money market balances were up $48.7 million or 6.7%, and savings balances were up $181.9 million or 13.2%.  We believe the increase in core deposits continues to reflect the desire of customers to have additional funds in the safety and security offered by TrustCo’s long history of conservative banking.  As we move forward, the objective is to continue 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 0.10% in the second quarter 2022 from 0.17% in the second quarter 2021.  A significant portion of our CD portfolio (time deposits) repriced during the last year while interest rates remained low; however, the Bank is monitoring the recent Federal Funds target rate increases, and the effects it is having on deposit rates as we move forward.  Continued increases in rates by the Federal Reserve Board will more than likely cause an increase in rates of interest bearing liabilities.  The net interest margin for the second quarter 2022 was 2.83%, up 13 basis points from 2.70% in the second quarter of 2021.  This was primarily also due to the recent increase in the Federal Funds target rate, resulting in more interest earned on our short-term funds.

The Bank continued to demonstrate its ability to grow shareholders’ equity as average equity was up $17.7 million or 3.1% in the second quarter of 2022 compared to the same period in 2021.  Return on average assets and return on average equity for the second quarter 2022 were 1.15% and 12.08%, respectively, an increase as compared to 0.95% and 10.05% for the second quarter 2021.  Improving efficiencies to reduce costs continues to remain a key area of focus.  Salaries and benefits expense increased approximately $2.2 million over the prior quarter due to a true-up to the incentive compensation accrual in the prior quarter.  Salaries and benefits expense has returned to historical levels in the second quarter of 2022.  The efficiency ratio was 51.97 for the second quarter 2022, a decrease as compared to 56.91 for the second quarter 2021.  The Bank also purchased 75 thousand shares of stock under the previously announced Stock Repurchase Plan.

Asset quality and loan loss reserve measures have stayed consistent.  Nonperforming loans (NPLs) were $18.7 million at June 30, 2022, compared to $20.8 million at June 30, 2021.  NPLs were 0.41% and 0.48% of total loans at June 30, 2022 and 2021, respectively.  The coverage ratio, or allowance for credit losses on loans to NPLs, was 242.0% at June 30, 2022, compared to 240.9% at June 30, 2021.  Nonperforming assets (NPAs) were $19.4 million at June 30, 2022, compared to $21.1 million at June 30, 2021.  As mentioned in the prior quarter, the Company adopted Accounting Standards Update 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (“CECL”) effective January 1, 2022.  TrustCo recorded a net decrease to retained earnings of $3.5 million upon adoption of the new accounting standard. The transition adjustment at January 1, 2022 included a $2.4 million increase in the allowance for credit losses on loans, a $2.3 million increase in the allowance for estimated credit losses on unfunded off-balance sheet credit exposures, and a corresponding increase in deferred tax assets of $1.2 million.  The Company recorded a credit to provision for credit losses of $491 thousand, which includes a credit to provision for credit losses on loans of $1.0 million as a result of improving unemployment and housing price forecasts, offset by a provision for credit losses on unfunded commitments of $509 thousand as a result of a corresponding increase in unfunded loan commitments.  The ratio of allowance for credit losses on loans to total loans was 1.00% and 1.15% as of June 30, 2022 and 2021, respectively.  The allowance for credit losses on loans was $45.3 million at June 30, 2022, compared to $50.2 million at June 30, 2021.

Net recoveries for the second quarter 2022 were $107 thousand versus net recoveries in the second quarter 2021 of $164 thousand.  The annualized net recoveries ratio was (0.01)% and (0.02)% for the second quarter 2022 and 2021, respectively.

At June 30, 2022 the equity to asset ratio was 9.55%, compared to 9.45% at June 30, 2021.  Book value per share at June 30, 2022 was $31.06, up 3.5% compared to $30.00 a year earlier.

TrustCo Bank Corp NY is a $6.2 billion savings and loan holding company and through its subsidiary, Trustco Bank, operated 144 offices in New York, New Jersey, Vermont, Massachusetts, and Florida at June 30, 2022.

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

 

A conference call to discuss second quarter 2022 results will be held at 9:00 a.m. Eastern Time on July 22, 2022.  Those wishing to participate in the call may dial toll-free for the United States at 1-844-200-6205, for Canada at 1-833-950-0062, and all other locations at 1-929-526-1599, Access code 005124.  A replay of the call will be available for thirty days by dialing toll-free for the United States at 1-866-813-9403, for Canada at 1-226-828-7578, and all other locations at +44-204-525-0658, Access code 575732.  The call will also be audio webcast at https://events.q4inc.com/attendee/221175934, 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 2022, 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 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 and macroeconomic or geopolitical concerns related to inflation, rising interest rates and the war in Ukraine. TrustCo wishes to caution readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. The following important factors, among others, in some cases have affected and in the future could affect TrustCo’s actual results and could cause TrustCo’s actual financial performance to differ materially from that expressed in any forward-looking statement:  the effects of inflation and inflationary pressures and changes in monetary and fiscal policies and laws, including interest rate policies of the Federal Reserve Board; the impact of the actions taken by governmental authorities to contain the COVID-19 pandemic or address the impact of the pandemic on the economy, and the effect of all of such items on our operations, liquidity and capital position, and on the financial condition of our borrowers and other customers; changes in and uncertainty related to benchmark interest rates used to price loans and deposits; future business strategies related to the implementation of CECL; credit risks and risks from concentrations (by geographic area and by loan product) within our loan portfolio; changes in local market areas and general business and economic trends, as well as changes in consumer spending and savings habits; and our ability to assess and react effectively to such changes; our ability to continue to originate a significant volume of one-to-four family mortgage loans in our market areas; our ability to continue to maintain noninterest expense and other overhead costs at reasonable levels relative to income; our ability to make accurate assumptions and judgments regarding the credit risks associated with lending and investing activities; restrictions or conditions imposed by our regulators on our operations that may make it more difficult for us to achieve our goals; the future earnings and capital levels of us and Trustco Bank and the continued receipt of approvals from our primary federal banking regulators under regulatory rules to distribute capital to TrustCo, which could affect our ability to pay dividends; results of supervisory monitoring or examinations of Trustco Bank and TrustCo by our respective regulators; adverse conditions in the securities markets that lead to impairment in the value of securities in our investment portfolio;  the perceived overall value of our products and services by users, including in comparison to competitors’ products and services and the willingness of current and prospective customers to substitute competitors’ products and services for our products and services; changes in consumer spending, borrowing and saving habits; the effect of changes in financial services laws and regulations and the impact of other governmental initiatives affecting the financial services industry; changes in management personnel; real estate and collateral values; changes in accounting policies and practices, as may be adopted by the bank regulatory agencies, the FASB or PCAOB; disruptions, security breaches, or other adverse events affecting the third-party vendors who perform several of our critical processing functions; technological changes and electronic, cyber and physical security breaches; our success at managing the risks involved in the foregoing and managing our business; and other risks and uncertainties under the heading “Risk Factors” in our most recent annual report on Form 10-K and, if any, in our subsequent quarterly reports on Form 10-Q or other securities filings.

TRUSTCO BANK CORP NY

GLENVILLE, NY

FINANCIAL HIGHLIGHTS

(dollars in thousands, except per share data)

(Unaudited)

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

(2)	Non-GAAP measure; calculated as total equity less $553 of intangible assets divided by total assets less $553 of intangible assets.  See Non-GAAP Financial Measures Reconciliation.

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

TE = Taxable equivalent

FINANCIAL HIGHLIGHTS, Continued

(dollars in thousands, except per share data)

(Unaudited)

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

TE = Taxable equivalent.

CONSOLIDATED STATEMENTS OF INCOME

(dollars in thousands, except per share data)

(Unaudited)

CONSOLIDATED STATEMENTS OF INCOME, Continued

(dollars in thousands, except per share data)

(Unaudited)

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

(dollars in thousands)

(Unaudited)

NONPERFORMING ASSETS

(dollars in thousands)

(Unaudited)

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

DISTRIBUTION OF ASSETS, LIABILITIES AND SHAREHOLDERS' EQUITY -

INTEREST RATES AND INTEREST DIFFERENTIAL