TrustCo Bank Corp NY: A Standout No Matter the Economic Environment

TrustCo Bank Corp NY (TrustCo, Nasdaq: TRST) on December 9, 2024, issued an analysis comparing its performance for the first three quarters of 2024 to that of the Company’s peers on the following metrics: Efficiency Ratio, Cost of Funds, Tier 1 Capital, and Diluted EPS. The referenced charts are attached.

Efficiency Ratio2

Efficiency ratio is a numerical representation of what it costs us to make a dollar. As the chart below shows, TrustCo ranks in the bottom 21st percentile (lower being better) year-to-date, and over the latest quarter ending September 30, 2024.

Efficiency RatioTRST Outranks 79% of Peers
		Year to Date	Latest Quarter
	TrustCo Bank Corp NY	60.80%	59.65%
	Peer Average	69.06%	67.62%

Common Equity Tier 1 Capital Ratio

Tier 1 common capital ratio (“CET 1”) is a measurement of a bank’s core equity capital, compared with its total risk-weighted assets, and signifies a bank’s financial strength. It shows how well a bank can withstand financial stress and remain solvent. Maintaining an extremely healthy CET 1 capital ratio is a bedrock strategic principle of TrustCo, and illustrates the strength and soundness of Trustco Bank for over a century. TrustCo continues to lead its peers in this metric, and is at the top, or 100th percentile of its peer group, for the nine months ending September 30, 2024 and September 30, 2023, respectively.

CET Tier 1 Capital RatioTRST Outranks 100% of Peers

		Year to Date 9/30/2024	Year to Date 9/30/2023
	TrustCo Bank Corp NY	19.27%	19.27%
	Peer Average	12.46%	12.53%

Cost of Funds

Cost of funds is a profitability metric, measured by the interest rate banks pay on deposit accounts in order to obtain the funds they use to lend to customers. The spread, or difference between the interest paid on deposits and the interest earned on loans, is net interest margin. The lower the cost of funds, the more profitable the bank can be. TrustCo ranks in the bottom 5th percentile (lower being better) of its peers for deposit costs year-to-date, and over the latest quarter ending September 30, 2024. Trustco has retained and grown its deposit portfolio without sacrificing returns to shareholders.

Cost of FundsTRST Outranks 95% of Peers
		Year to Date	Latest Quarter
	TrustCo Bank Corp NY	1.70%	1.67%
	Peer Average	2.56%	2.63%

Earnings per Share

Earnings per share (EPS) is a measure of a company's profitability that indicates how much profit each outstanding share of common stock has earned. It's calculated by dividing the company's net income by the total number of outstanding shares. The higher a company's EPS, the more profitable it is considered to be. A higher EPS indicates a greater value because investors will pay more for a company’s shares if they think the company has higher profits relative to its share price. From an investor standpoint, EPS is often measured against companies of the same industry or across a period of time. As the chart below shows, TrustCo ranks in the top 74th percentile of peer companies for EPS year-to-date, and over the latest quarter, ending September 30, 2024.

Diluted EPSTRST Outranks 74% of Peers

		Year to Date	Latest Quarter
	TrustCo Bank Corp NY	$1.97	$0.68
	Peer Average	$1.36	$0.47

About TrustCo Bank Corp NYTrustCo Bank Corp NY is a $6.1 billion savings and loan holding company. Through its subsidiary, Trustco Bank, Trustco operates 138 offices in New York, New Jersey, Vermont, Massachusetts and Florida. Trustco has a more than 100-year tradition of providing high-quality services, including a wide variety of deposit and loan products. In addition, Trustco Bank’s Wealth Management Department offers a full range of investment services, retirement planning and trust and estate administration services. Trustco Bank is rated as one of the best performing savings banks in the country. The common shares of TrustCo are traded on the NASDAQ Global Select Market under the symbol TRST. For more information, visit www.trustcobank.com.

Contact Robert M. Leonard, EVP and COO (518)-381-3693

1Data provided in charts above is derived from S&P Capital IQ

2Non-GAAP Financial Measure Reconciliation

The Securities and Exchange Commission (“SEC”) has adopted certain rules with respect to the use of “non-GAAP financial measures” by companies with a class of securities registered under the Securities Exchange Act of 1934, as amended, such as TrustCo Bank Corp NY (the “Company”). Under the SEC’s rules, companies making disclosures containing non-GAAP financial measures must also disclose, along with each non-GAAP financial measure, certain additional information, including a reconciliation of the non-GAAP financial measure to the closest comparable GAAP financial measure and a statement of the company’s reasons for utilizing the non-GAAP financial measure as part of its financial disclosures. The Company’s presentation of efficiency ratio in this slide is determined by a method other than in accordance with GAAP.

Adjusted Efficiency Ratio: Financial institutions often use an “efficiency ratio” as a measure of expense control relative to revenue from net interest income and non-interest fee income. The efficiency ratio typically is defined as noninterest expense divided by the sum of taxable equivalent net interest income and noninterest income. As in the case of net interest income, generally, net interest income as utilized in calculating the efficiency ratio is typically expressed on a taxable equivalent basis. Moreover, many financial institutions, in calculating the efficiency ratio, also adjust both noninterest expense and noninterest income to exclude from these items (as calculated under GAAP) certain component elements, such as other real estate expense (deducted from noninterest expense) and securities transactions (excluded from noninterest 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 the Company’s adjusted efficiency ratio provides information that is important to investors and that is useful in understanding the Company’s financial position and results. Management internally assesses our performance based, in part, on this measure. However, this non-GAAP financial measure is supplemental and is not a substitute for an analysis based on the GAAP equivalent measure. As other companies may use different calculations for efficiency ratio, this presentation may not be comparable to other similarly titled measures reported by other companies. A reconciliation of the non-GAAP measure of adjusted efficiency ratio to GAAP efficiency ratio is set forth below.



Adjusted Efficiency Ratio	Three Months Ended		Nine Months Ended
	9/30/2024		9/30/2024
Net interest income (GAAP)	$38,671		$113,037
Taxable equivalent adjustment	-		-
Net interest income (fully taxable equivalent) (Non-GAAP0	38,671		113,037
Noninterest income (GAAP)	4,931		15,425
Less: Net gains on equity securities	23		1,383
Revenue used for adjusted efficiency ratio (Non-GAAP)	$43,579		$127,079
Total noninterest expense (GAAP)	$26,200		$77,562
Less: Other real estate expense, net	204		294
Expense used for adjusted efficiency ratio (Non-GAAP)	$25,996		$77,268

Efficiency Ratio (GAAP)	60.08	%	60.85	%
Efficiency Ratio (Non-GAAP)	59.65	%	60.80	%

Peer Group

Arrow Financial Corp.	AROW	Glens Falls	NY
BCB Bancorp Inc.	BCBP	Bayonne	NJ
Capital City Bank Group Inc.	CCBG	Tallahassee	FL
CNB Financial	CCNE	Clearfield	PA
Columbia Financial	CLBK	Fair Lawn	NJ
ConnectOne Bancorp Inc.	CNOB	Englewood Cliffs	NJ
Financial Institutions Inc.	FISI	Warsaw	NY
FineMark Holdings, Inc.	FNBT	Fort Myers	FL
First Commonwealth Financial	FCF	Indiana	PA
Flushing Financial Corp.	FFIC	Uniondale	NY
HarborOne Bancorp Inc	HONE	Brockton	MA
Kearny Financial Corp.	KRNY	Fairfield	NJ
Mid Penn Bancorp	MPB	Millersburg	PA
NBT Bancorp Inc.	NBTB	Norwich	NY
Northfield Bancorp	NFBK	Woodbridge	NJ
S&T Bancorp	STBA	Indiana	PA
The First Long Island Corp.	FLIC	Glen Head	NY
Tompkins Financial Corporation	TMP	Ithaca	NY
Univest Financial Corp.	UVSP	Souderton	PA