TrustCo is Pleased to Report First Quarter 2019 Results; Net Income of $14.6 Million and 6.0% Average Loan Growth Year over Year

The Bank continued to demonstrate its ability to grow shareholders’ equity as average equity was up $35.4 million or 7.7% in the first quarter of 2019 compared to the same period in 2018. On this expanded equity, return on average assets and return on average equity for the first quarter 2019 were 1.17% and 11.93%, respectively, compared to 1.23% and 13.07% for the first quarter 2018.  Overall expense control remains a key area of focus.  Total operating expenses increased by $712 thousand or 2.9% in the first quarter 2019 as compared to the first quarter 2018, driven by salaries and employee benefits, largely offset by declines in FDIC Insurance and ORE Expenses, net.  The growth in salaries and benefit expense was the result of our targeted effort to hire and expand certain functions which has now been largely completed.

Asset quality and loan loss reserve measures continued to improve.  Nonperforming loans (NPLs) were $24.7 million at March 31, 2019, compared to $24.9 million at March 31, 2018.  NPLs were equal to 0.64% of total loans at March 31, 2019, compared to 0.68% at March 31, 2018.  The coverage ratio, or allowance for loan losses to NPLs, was 180.5% at March 31, 2019, compared to 178.6% at March 31, 2018.  Nonperforming assets (NPAs) were $26.0 million at March 31, 2019 compared to $27.0 million at March 31, 2018.  The ratio of allowance for loan losses to total loans was 1.16% as of March 31, 2019, compared to 1.21% at March 31, 2018 which reflects both the improvement in asset quality and economic conditions in our lending areas.  The allowance for loan losses was $44.7 million at March 31, 2019 compared to $44.4 million at March 31, 2018.  The provision for loan losses remained nominal which continued to reflect the strong credit performance within the loan portfolio.   Net chargeoffs for the first quarter 2019 increased versus the first quarter 2018, at $395 thousand from $90 thousand in the year earlier period driven by a non performing loan sale.  The annualized net chargeoff ratio was 0.04% for the first quarter 2019, compared to 0.01% in the first quarter 2018. 

At March 31, 2019 the equity to asset ratio was 9.73%, compared to 9.37% at March 31, 2018. As mentioned earlier the Bank is proud of its ability to grow shareholder value. Book value per share at March 31, 2019 was $5.18 up 7.92% compared to $4.80 a year earlier.

TrustCo Bank Corp NY is a $5.2 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, 2019.

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 first quarter 2019 results will be held at 9:00 a.m. Eastern Time on April 23, 2019.  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 10130170.  The call will also be audio webcast at: https://services.choruscall.com/links/trst190429.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 2018, the impact of Federal Reserve actions regarding interest rates and the growth of loans and deposits throughout our branch network, our ability to capitalize on economic changes in the areas in which we operate and the extent to which higher expenses to fulfill operating and regulatory requirements recur or diminish over time.  Such forward-looking statements are subject to factors that could cause actual results to differ materially for TrustCo from those discussed. 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:  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 comply with the supervisory agreement entered into with Trustco Bank’s regulator and potential regulatory actions if we fail to comply; 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 Trustco Bank and the continued ability of Trustco Bank under regulatory rules and the supervisory agreement 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; our ability to make accurate assumptions and judgments regarding the credit risks associated with lending and investing activities; the effect of changes in financial services laws and regulations and the impact of other governmental initiatives affecting the financial services industry; 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; adverse conditions on the securities markets that lead to impairment in the value of securities in our investment portfolio; changes in law and policy accompanying the new presidential administration and uncertainty or speculation pending the enactment of such changes; 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; technological changes and electronic, cyber, and physical security breaches; real estate and collateral values; changes in accounting policies and practices, as may be adopted by the bank regulatory agencies, the FASB or PCAOB; 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.