ex99_a.htm

The third quarter of 2012 saw continued balance sheet growth compared to the third quarter of 2011, but a modest decline compared to the second quarter of 2012. Robert J. McCormick, President and Chief Executive Officer noted, “We are pleased that the third quarter resulted in continued solid earnings growth. As noted in our second quarter release, the current interest rate environment has created a unique opportunity for our Company to realign the deposit mix which should support future objectives. As we had discussed we allowed an average of $124.0 million of higher cost time deposits to run off during the third quarter while at the same time growing our core deposits by an average of $96.9 million. Previous strong quarterly growth in deposits allowed us the flexibility to take advantage of this opportunity to shift our deposit mix, which helped improve our margin. Balance sheet expansion remains an important part of our future plans, but we will also continue to take advantage of future opportunities like those in the third quarter that strengthen our deposit mix and have a positive impact on our margin. We continue to add solid and profitable customers on both the deposit and loan side, and will remain conservative as to how we price our products. Our highly liquid balance sheet allows us to fund loan growth without having to overpay for deposits. We look forward to the balance of 2012 and 2013 with optimism, though we note that our industry continues to face challenges as the economy remains fragile and interest rates remain at unprecedented levels. We will continue to take advantage of opportunities that are presented.” Return on average equity and return on average assets were 10.97% and 0.89%, respectively, for the third quarter of 2012, compared to 10.91% and 0.88% for the third quarter of 2011. The efficiency ratio was 49.18% for the third quarter of 2012, compared to 46.51% for the third quarter of 2011. Both years ratios rank among industry leaders.

TrustCo continued to report solid growth in loans and deposits on a year-over-year basis. For the quarter ended September 30, 2012, average loans were up $134.7 million or 5.5% compared to the same period in 2011, while average deposits increased $166.1 million or 4.5% over the same period. Compared to the second quarter of 2012, average deposits were down $27.0 million or 2.8% (annualized) and average loans were up $42.3 million or 6.7% (annualized). Mr. McCormick noted that, “The year-over-year growth of our loans and deposits reflects the long term strategic focus of the Bank, while the decline in average deposits relative to the second quarter reflects our near term tactical decision to intensify our focus on enhancing our mix of deposits and growing our core customer base. Our efforts in this regard resulted in certificate of deposit balances falling from 33.9% of deposits at June 30, 2012 to 29.4% at September 30, 2012. Because certificates are our most costly deposits, this decline contributed to our overall cost of deposits falling to 0.44% in the third quarter compared to 0.52% in the second quarter.

Nonperforming loans were $49.9 million as of September 30, 2012, compared to $51.5 million at June 30, 2012 and $47.0 million at September 30, 2011. Nonperforming assets were $58.6 million at September 30, 2012, compared to $55.3 million at June 30, 2012 and $53.1 million at September 30, 2011. At September 30, 2012, nonperforming loans were equal to 1.92% of total loans, compared to 2.01% at June 30, 2012 and 1.89% at September 30, 2011. Nonperforming assets to total assets were 1.36% at September 30, 2012, compared to 1.25% at June 30, 2012 and 1.27% at September 30, 2011. The allowance for loan losses as a percentage of gross loans and as a multiple of net charge-offs remains strong. Excluding the affect of implementing the new OCC guidance TrustCo would have had nonperforming loans of $45.9 million or 1.76% of total loans, and nonperforming assets of $54.6 million or 1.26% of total assets as of September 30, 2012. The allowance to total loans was 1.82% at September 30, 2012 and 1.88% at June 30, 2012, and covered annualized third quarter net charge-offs by 3.3 times, compared to an annualized 4.1 times for the third quarter of 2011. The coverage ratio, or allowance for loan losses to nonperforming loans was 94.9% at September 30, 2012, compared to 93.3% at June 30, 2012 and 101.7% at September 30, 2011. Excluding the affect of implementing the new OCC guidance TrustCo's allowance for loan losses at September 30, 2012 as a percentage of gross loans would have been 1.85%, which would have covered annualized third quarter net charge offs by 4.4 times. Likewise the coverage ratio of the allowance for loan losses to nonperforming loans would have been 104.9% at September 30 , 2012.

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. The “forward-looking statements” may include statements regarding future events or performance and statements regarding TrustCo’s ability to offer and sell securities under its shelf registration statement. 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 our actual results and could cause our actual financial performance to differ materially from that expressed in any forward-looking statement: credit risk, the effects of and changes in, trade, monetary and fiscal policies and laws, including interest rate policies of the Board of Governors of the Federal Reserve System, inflation, interest rates, market and monetary fluctuations, competition, the effect of changes in financial services laws and regulations (including laws concerning taxation, banking and securities), real estate and collateral values, changes in accounting policies and practices, as may be adopted by the bank regulatory agencies, the Financial Accounting Standards Board (“FASB”) or the Public Company Accounting Oversight Board; changes in local market areas and general business and economic trends and the matters described under the heading “Risk Factors” in our annual report on Form 10-K for the year ended December 31, 2011, as amended, and in our subsequent securities filings.

				Three Months Ended
	09/30/12			06/30/12		09/30/11
Summary of operations
Net interest income (TE)	$	34,321			33,993		34,390
Provision for loan losses		2,900			3,000		5,100
Net securities transactions		666			55		158
Noninterest income		3,927			3,971		3,645
Noninterest expense		20,019			20,498		18,443
Net income		9,753			9,066		9,225

Per common share
Net income per share:
- Basic	$	0.104			0.097		0.100
- Diluted	$	0.104			0.097		0.100
Cash dividends		0.066			0.066		0.066
Tangible Book value at period end		3.81			3.73		3.62
Market price at period end		5.71			5.46		4.46

At period end
Full time equivalent employees		760			742		720
Full service banking offices		138			137		135

Performance ratios
Return on average assets		0.89	%		0.83		0.88
Return on average equity		10.97			10.49		10.91
Efficiency (1)		49.18			52.24		46.51
Net interest spread (TE)		3.15			3.09		3.29
Net interest margin (TE)		3.21			3.16		3.38
Dividend payout ratio		63.13			67.80		66.27

Capital ratio at period end
Consolidated tangible equity to tangible assets (2)		8.27			7.90		8.04

Asset quality analysis at period end
Nonperforming loans to total loans (4)		1.92			2.01		1.89
Nonperforming assets to total assets (4)		1.36			1.25		1.27
Allowance for loan losses to total loans		1.82			1.88		1.93
Coverage ratio (3)		0.9	x		0.9		1.0

	Nine Months Ended
	09/30/12			09/30/11
Summary of operations
Net interest income (TE)	$	101,951			101,497
Provision for loan losses		9,000			14,550
Net securities transactions		1,398			1,296
Noninterest income		11,739			11,349
Noninterest expense		61,161			60,841
Net income		27,728			24,373

Per common share
Net income per share:
- Basic	$	0.296			0.296
- Diluted		0.296			0.296
Cash dividends		0.197			0.197
Tangible Book value at period end		3.81			3.62
Market price at period end		5.71			4.46

Performance ratios
Return on average assets		0.85	%		0.80
Return on average equity		10.64			11.38
Efficiency (1)		51.30			49.98
Net interest spread (TE)		3.12			3.33
Net interest margin (TE)		3.20			3.42
Dividend payout ratio		66.51			66.71

	Three Months Ended
	9/30/2012		6/30/2012		3/31/2012		12/31/2011		9/30/2011
Interest and dividend income:
Interest and fees on loans	$	32,103		32,277		32,425		32,711		32,640
Interest and dividends on securities available for sale:
U. S. government sponsored enterprises		1,996		2,606		2,304		2,661		3,347
State and political subdivisions		340		368		410		490		557
Mortgage-backed securities and collateralized mortgage obligations-residential		2,003		1,364		1,093		1,083		778
Corporate bonds		529		648		822		886		953
Small Business Administration-guaranteed participation securities		43		-		-		-		-
Other securities		4		5		5		5		5
Total interest and dividends on securities available for sale		4,915		4,991		4,634		5,125		5,640

Interest on held to maturity securities:
U. S. government sponsored enterprises		-		-		25		97		164
Mortgage-backed securities and collateralized mortgage obligations-residential		976		1,198		1,290		1,151		1,186
Corporate bonds		385		387		509		590		565
Total interest on held to maturity securities		1,361		1,585		1,824		1,838		1,915

Federal Reserve Bank and Federal Home Loan Bank stock		120		149		90		80		84

Interest on federal funds sold and other short-term investments		258		299		320		284		318
Total interest income		38,757		39,301		39,293		40,038		40,597

Interest expense:
Interest on deposits:
Interest-bearing checking		79		78		78		76		74
Savings		870		979		1,102		1,018		952
Money market deposit accounts		673		770		923		1,030		1,158
Time deposits		2,629		3,230		3,418		3,552		3,904
Interest on short-term borrowings		348		378		388		401		384
Total interest expense		4,599		5,435		5,909		6,077		6,472

Net interest income		34,158		33,866		33,384		33,961		34,125

Provision for loan losses		2,900		3,000		3,100		4,200		5,100
Net interest income after provision for loan losses		31,258		30,866		30,284		29,761		29,025

Noninterest income:
Trust department income		1,145		1,407		1,394		1,086		1,242
Fees for services to customers		2,610		2,388		2,240		2,305		2,189
Net gain on securities transactions		666		55		677		132		158
Other		172		176		207		213		214
Total noninterest income		4,593		4,026		4,518		3,736		3,803

Noninterest expenses:
Salaries and employee benefits		7,587		7,519		7,743		7,638		7,087
Net occupancy expense		3,756		3,817		3,795		3,664		3,614
Equipment expense		1,316		1,600		1,520		1,200		1,639
Professional services		1,657		1,489		1,436		1,411		1,152
Outsourced services		1,350		1,347		1,250		1,050		1,350
Advertising expense		935		1,060		809		607		763
FDIC and other insurance		983		953		880		577		835
Other real estate expense, net		1,210		665		966		1,254		754
Other		1,225		2,048		2,245		1,508		1,249
Total noninterest expenses		20,019		20,498		20,644		18,909		18,443

Income before taxes		15,832		14,394		14,158		14,588		14,385
Income taxes		6,079		5,328		5,249		5,874		5,160

Net income	$	9,753		9,066		8,909		8,714		9,225
Net income per Common Share:
- Basic	$	0.104		0.097		0.095		0.093		0.100

- Diluted		0.104		0.097		0.095		0.093		0.100

Average basic shares (thousands)		93,692		93,561		93,546		93,308		92,124
Average diluted shares (thousands)		93,700		93,562		93,546		93,308		92,124

Note: Taxable equivalent net interest income	$	34,321		33,993		33,637		34,220		34,390

	Nine Months Ended
	9/30/2012		9/30/2011

Interest and dividend income:
Interest and fees on loans	$	96,805		96,501
Interest and dividends on securities available for sale:
U. S. government sponsored enterprises		6,906		10,337
State and political subdivisions		1,118		1,981
Mortgage-backed securities and collateralized mortgage obligations-residential		4,460		2,008
Corporate bonds		1,999		3,173
Small Business Administration-guaranteed participation securities		43		-
Other securities		14		14
Total interest and dividends on securities available for sale		14,540		17,513

Interest on held to maturity securities:
U. S. government sponsored enterprises		25		164
Mortgage-backed securities-residential		3,464		3,614
Corporate bonds		1,281		1,875
Total interest on held to maturity securities		4,770		5,653

Federal Reserve Bank and Federal Home Loan Bank stock		359		225

Interest on federal funds sold and other short-term investments		877		818
Total interest income		117,351		120,710

Interest expense:
Interest on deposits:
Interest-bearing checking		235		209
Savings		2,951		2,770
Money market deposit accounts		2,366		3,569
Time deposits		9,277		12,446
Interest on short-term borrowings		1,114		1,173
Total interest expense		15,943		20,167

Net interest income		101,408		100,543

Provision for loan losses		9,000		14,550
Net interest income after provision for loan losses		92,408		85,993

Noninterest income:
Trust department income		3,946		4,002
Fees for services to customers		7,238		6,608
Net gain on securities transactions		1,398		1,296
Other		555		739
Total noninterest income		13,137		12,645

Noninterest expenses:
Salaries and employee benefits		22,849		21,113
Net occupancy expense		11,368		11,023
Equipment expense		4,436		4,452
Professional services		4,582		4,318
Outsourced services		3,947		4,050
Advertising expense		2,804		2,177
FDIC and other insurance		2,816		4,078
Other real estate expense, net		2,841		4,439
Other		5,518		5,191
Total noninterest expenses		61,161		60,841

Income before taxes		44,384		37,797
Income taxes		16,656		13,424

Net income	$	27,728		24,373

Net income per Common Share:
- Basic	$	0.296		0.296

- Diluted		0.296		0.296

Average basic shares (thousands)		93,568		82,297
Average diluted shares (thousands)		93,572		82,297

Note: Taxable equivalent net interest income	$	101,951		101,497

	9/30/2012			6/30/2012			3/31/2012			12/31/2011			9/30/2011
ASSETS:

Cash and due from banks	$	40,354			36,589			39,426			44,395			40,875
Federal funds sold and other short term investments		402,290			486,049			486,055			488,548			434,950
Total cash and cash equivalents		442,644			522,638			525,481			532,943			475,825

Securities available for sale:
U. S. government sponsored enterprises		427,798			643,189			744,725			563,460			633,812
States and political subdivisions		33,857			36,978			38,367			43,968			51,289
Mortgage-backed securities and collateralized mortgage obligations-residential		515,879			354,285			219,301			204,022			200,516
Corporate bonds		49,296			73,311			81,654			96,608			97,464
Small Business Administration-guaranteed participation securities		25,338			-			-			-			-
Other securities		660			660			660			660			660
Total securities available for sale		1,052,828			1,108,423			1,084,707			908,718			983,741

Held to maturity securities:
U. S. government sponsored enterprises		-			-			-			15,000			25,000
Mortgage-backed securities and collateralized mortgage obligations-residential		120,877			133,562			143,629			141,857			109,603
Corporate bonds		35,074			35,193			35,312			59,431			59,555
Total held to maturity securities		155,951			168,755			178,941			216,288			194,158

Federal Reserve Bank and Federal Home Loan Bank stock		9,632			9,632			9,004			9,004			6,861

Loans:
Commercial		217,431			235,347			235,513			248,163			244,389
Residential mortgage loans		2,056,972			2,003,046			1,970,278			1,955,951			1,925,144
Home equity line of credit		327,083			317,157			314,668			313,038			305,587
Installment loans		4,455			4,071			3,855			4,151			3,829
Loans, net of deferred fees and costs		2,605,941			2,559,621			2,524,314			2,521,303			2,478,949
Less:
Allowance for loan losses		47,364			48,018			48,535			48,717			47,782
Net loans		2,558,577			2,511,603			2,475,779			2,472,586			2,431,167

Bank premises and equipment, net		37,251			37,868			37,099			37,006			35,946
Other assets		61,290			62,480			63,432			67,099			65,261

Total assets	$	4,318,173			4,421,399			4,374,443			4,243,644			4,192,959

LIABILITIES:
Deposits:
Demand	$	292,350			283,873			281,628			267,776			269,958
Interest-bearing checking		536,892			528,101			507,510			489,227			472,908
Savings accounts		1,167,927			1,122,208			1,068,058			978,819			923,893
Money market deposit accounts		668,064			644,627			631,761			635,434			642,054
Certificates of deposit (in denominations of $100,000 or more)		359,246			452,043			467,447			460,971			461,081
Other time accounts		751,974			867,798			894,946			903,746			910,633
Total deposits		3,776,453			3,898,650			3,851,350			3,735,973			3,680,527

Short-term borrowings		161,751			150,718			159,002			147,563			143,081
Due to broker		-			-			-			-			10,000
Accrued expenses and other liabilities		22,352			22,124			19,445			21,592			21,541

Total liabilities		3,960,556			4,071,492			4,029,797			3,905,128			3,855,149

SHAREHOLDERS' EQUITY:
Capital stock		98,912			98,912			98,912			98,912			98,806
Surplus		175,284			175,773			176,199			176,638			177,448
Undivided profits		128,750			125,153			122,235			119,465			116,894
Accumulated other comprehensive income (loss), net of tax		4,879			1,585			53			(2,493	)		258
Treasury stock at cost		(50,208	)		(51,516	)		(52,753	)		(54,006	)		(55,596	)

Total shareholders' equity		357,617			349,907			344,646			338,516			337,810

Total liabilities and shareholders' equity	$	4,318,173			4,421,399			4,374,443			4,243,644			4,192,959

Outstanding shares (thousands)		93,807			93,674			93,549			93,315			93,154

	09/30/12		06/30/12		03/31/12		12/31/11		09/30/11
New York and other states*
Loans in nonaccrual status:
Commercial	$	5,880		5,656		5,667		4,981		5,086
Real estate mortgage - 1 to 4 family		32,593		29,167		29,894		27,820		25,932
Installment		71		1		9		3		4
Total non-accrual loans		38,544		34,824		35,570		32,804		31,022
Other nonperforming real estate mortgages - 1 to 4 family		238		243		306		312		317
Total nonperforming loans		38,782		35,067		35,876		33,116		31,339
Other real estate owned		2,716		2,787		2,411		2,382		2,372
Total nonperforming assets	$	41,498		37,854		38,287		35,498		33,711

Florida
Loans in nonaccrual status:
Commercial	$	2,698		8,435		5,874		5,000		5,400
Real estate mortgage - 1 to 4 family		8,438		7,954		9,404		10,662		10,231
Installment		7		1		-		-		-
Total non-accrual loans		11,143		16,390		15,278		15,662		15,631
Other nonperforming real estate mortgages - 1 to 4 family		-		-		-		-		-
Total nonperforming loans		11,143		16,390		15,278		15,662		15,631
Other real estate owned		5,975		1,083		1,293		2,883		3,739
Total nonperforming assets	$	17,118		17,473		16,571		18,545		19,370

Total
Loans in nonaccrual status:
Commercial	$	8,578		14,091		11,541		9,981		10,486
Real estate mortgage - 1 to 4 family		41,031		37,121		39,298		38,482		36,163
Installment		78		2		9		3		4
Total non-accrual loans		49,687		51,214		50,848		48,466		46,653
Other nonperforming real estate mortgages - 1 to 4 family		238		243		306		312		317
Total nonperforming loans		49,925		51,457		51,154		48,778		46,970
Other real estate owned		8,691		3,870		3,704		5,265		6,111
Total nonperforming assets	$	58,616		55,327		54,858		54,043		53,081

	09/30/12			06/30/12			03/31/12			12/31/11			09/30/11
Total nonperforming loans(1)	$	49,925			51,457			51,154			48,778			46,970
Total nonperforming assets(1)		58,616			55,327			54,858			54,043			53,081
Total net chargeoffs(2)		3,554			3,517			3,282			3,265			2,879

Allowance for loan losses(1)		47,364			48,018			48,535			48,717			47,782

Nonperforming loans to total loans(1)		1.92	%		2.01	%		2.03	%		1.93	%		1.89	%
Nonperforming assets to total assets(1)		1.36	%		1.25	%		1.25	%		1.27	%		1.27	%
Allowance for loan losses to total loans(1)		1.82	%		1.88	%		1.92	%		1.93	%		1.93	%
Coverage ratio(1)		94.9	%		93.3	%		94.9	%		99.9	%		101.7	%
Annualized net chargeoffs to average loans(2)		0.55	%		0.55	%		0.52	%		0.52	%		0.47	%
Allowance for loan losses to annualized net chargeoffs(2)		3.3	x		3.4	x		3.7	x		3.7	x		4.1	x

(dollars in thousands)	Three months ended									Three months ended
(Unaudited)	September 30, 2012									September 30, 2011
	Average			Interest			Average			Average			Interest			Average
	Balance						Rate			Balance						Rate

Assets

Securities available for sale:
U. S. government sponsored enterprises	$	594,814			1,996			1.34	%	$	666,503			3,347			2.01	%
Mortgage backed securities and collateralized mortgage obligations-residential		397,935			2,003			2.01			114,442			778			2.72
State and political subdivisions		34,383			495			5.76			53,540			815			6.09
Corporate bonds		66,940			529			3.16			102,522			953			3.72
Small Business Administration-guaranteed participation securities		8,024			43			2.14			-			-			0.00
Other		660			4			2.42			660			5			3.03

Total securities available for sale		1,102,756			5,070			1.84			937,667			5,898			2.52

Federal funds sold and other short-term Investments		416,971			258			0.25			486,749			318			0.26

Held to maturity securities:
U. S. government sponsored enterprises		-			-			0.00			27,772			164			2.36
Corporate bonds		35,132			385			4.39			50,962			565			4.44
Mortgage backed securities and collateralized mortgage obligations-residential		128,188			976			3.04			111,037			1,186			4.27

Total held to maturity securities		163,320			1,361			3.33			189,771			1,915			4.04

Federal Reserve Bank and Federal Home Loan Bank stock		9,632			120			4.98			6,861			84			4.90

Commercial loans		228,537			3,068			5.36			247,294			3,532			5.71
Residential mortgage loans		2,031,080			25,988			5.12			1,899,421			26,115			5.50
Home equity lines of credit		322,405			2,906			3.59			301,055			2,853			3.76
Installment loans		4,007			149			14.82			3,559			147			16.34

Loans, net of unearned income		2,586,029			32,111			4.96			2,451,329			32,647			5.32

Total interest earning assets		4,278,708			38,920			3.64			4,072,377			40,862			4.01

Allowance for loan losses		(49,039	)								(46,731	)
Cash & non-interest earning assets		144,099									143,928

Total assets	$	4,373,768								$	4,169,574

Liabilities and shareholders' equity

Deposits:
Interest bearing checking accounts	$	531,216			79			0.06	%	$	467,152			74			0.06	%
Money market accounts		660,464			673			0.40			644,452			1,158			0.71
Savings		1,151,910			870			0.30			913,384			952			0.41
Time deposits		1,217,080			2,629			0.86			1,396,941			3,904			1.11

Total interest bearing deposits		3,560,670			4,251			0.48			3,421,929			6,088			0.71
Short-term borrowings		151,535			348			0.91			132,404			384			1.15

Total interest bearing liabilities		3,712,205			4,599			0.49			3,554,333			6,472			0.72

Demand deposits		287,915									260,602
Other liabilities		20,084									19,310
Shareholders' equity		353,564									335,329

Total liabilities and shareholders' equity	$	4,373,768								$	4,169,574

Net interest income , tax equivalent					34,321									34,390

Net interest spread								3.15	%								3.29	%

Net interest margin (net interest income to total interest earning assets)								3.21	%								3.38	%

Tax equivalent adjustment					(163	)								(265	)

Net interest income					34,158									34,125

(dollars in thousands)	Nine months ended									Nine months ended
(Unaudited)	September 30, 2012									September 30, 2011
	Average			Interest			Average			Average			Interest			Average
	Balance						Rate			Balance						Rate

Assets

Securities available for sale:
U. S. government sponsored enterprises	$	634,903			6,906			1.45	%	$	691,975			10,337			1.99	%
Mortgage backed securities and collateralized mortgage obligations-residential		286,287			4,460			2.08			83,603			2,008			3.20
State and political subdivisions		37,032			1,587			5.71			62,440			2,913			6.22
Corporate bonds		78,999			1,999			3.38			110,438			3,173			3.83
Small Business Administration-guaranteed participation securities		2,694			43			2.13			-			-			0.00
Other		660			14			2.83			717			14			2.60

Total securities available for sale		1,040,575			15,009			1.92			949,173			18,445			2.59

Federal funds sold and other short-term Investments		473,196			877			0.25			429,115			818			0.25

Held to maturity securities:
U. S. government sponsored enterprises		1,423			25			2.38			9,359			164			2.33
Corporate bonds		41,071			1,281			4.16			55,125			1,875			4.54
Mortgage backed securities and collateralized mortgage obligations-residential		136,554			3,464			3.38			112,472			3,614			4.28

Total held to maturity securities		179,048			4,770			3.55			176,956			5,653			4.26

Federal Reserve Bank and Federal Home Loan Bank stock		9,357			359			5.12			6,879			225			4.36

Commercial loans		235,128			9,569			5.43			250,346			10,884			5.80
Residential mortgage loans		1,994,051			78,224			5.23			1,849,192			76,950			5.55
Home equity lines of credit		317,914			8,646			3.63			295,338			8,247			3.73
Installment loans		3,795			440			15.50			3,650			442			16.19

Loans, net of unearned income		2,550,888			96,879			5.06			2,398,526			96,523			5.37

Total interest earning assets		4,253,064			117,894			3.70			3,960,649			121,664			4.10

Allowance for loan losses		(49,420	)								(45,197	)
Cash & non-interest earning assets		141,725									144,386

Total assets	$	4,345,369								$	4,059,838

Liabilities and shareholders' equity

Deposits:
Interest bearing checking accounts	$	509,346			235			0.06	%	$	452,938			209			0.06	%
Money market accounts		642,907			2,366			0.49			630,649			3,569			0.76
Savings		1,092,195			2,951			0.36			869,511			2,770			0.43
Time deposits		1,307,411			9,277			0.95			1,417,272			12,446			1.17

Total interest bearing deposits		3,551,859			14,829			0.56			3,370,370			18,994			0.75
Short-term borrowings		150,039			1,114			0.99			130,890			1,173			1.20

Total interest bearing liabilities		3,701,898			15,943			0.58			3,501,260			20,167			0.77

Demand deposits		276,484									254,187
Other liabilities		18,922									18,070
Shareholders' equity		348,065									286,321

Total liabilities and shareholders' equity	$	4,345,369								$	4,059,838

Net interest income , tax equivalent					101,951									101,497

Net interest spread								3.12	%								3.33	%

Net interest margin (net interest income to total interest earning assets)								3.20	%								3.42	%

Tax equivalent adjustment					(543	)								(954	)

Net interest income					101,408									100,543

Tangible book value per share and tangible equity as a percentage of tangible assets at period end are non-GAAP financial measures 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 book value per share by dividing tangible equity by common shares outstanding, as compared to book value per common share, which we calculate by dividing shareholders’ equity by common shares outstanding. 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.

We believe that these non-GAAP financial measures provide information that is important to investors and that is useful in understanding our financial position, results and ratios. However, these non-GAAP financial measures are supplemental and are 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 and efficiency ratio to the underlying GAAP numbers is set forth below.

	09/30/12			06/30/12			03/31/12			12/31/11			09/30/11
Tangible Book Value Per Share

Equity	$	357,617			349,907			344,646			338,516			337,810
Less: Intangible assets		553			553			553			553			553
Tangible equity		357,064			349,354			344,093			337,963			337,257

Shares outstanding		93,807			93,674			93,549			93,315			93,154
Tangible book value per share		3.81			3.73			3.68			3.62			3.62
Book value per share		3.81			3.74			3.68			3.63			3.63

Tangible Equity to Tangible Assets
Total Assets		4,318,173			4,421,399			4,374,443			4,243,644			4,192,959
Less: Intangible assets		553			553			553			553			553
Tangible assets		4,317,620			4,420,846			4,373,890			4,243,091			4,192,406

Tangible Equity to Tangible Assets		8.27	%		7.90	%		7.87	%		7.97	%		8.04	%
Equity to Assets		8.28	%		7.91	%		7.88	%		7.98	%		8.06	%

	3 Months Ended															9 Months Ended
Efficiency Ratio	09/30/12			06/30/12			03/31/12			12/31/11			09/30/11			09/30/12			09/30/11

Net interest income (fully taxable equivalent)	$	34,321			33,993			33,637			34,220			34,390			101,951			101,497
Non-interest income		4,593			4,026			4,518			3,736			3,803			13,137			12,645
Less: Net gain on securities		666			55			677			132			158			1,398			1,296
Recurring revenue		38,248			37,964			37,478			37,824			38,035			113,690			112,846

Total Noninterest expense		20,019			20,498			20,644			18,909			18,443			61,161			60,841
Less: Other real estate expense, net		1,210			665			966			1,254			754			2,841			4,439
Recurring expense		18,809			19,833			19,678			17,655			17,689			58,320			56,402

Efficiency Ratio		49.18	%		52.24	%		52.51	%		46.68	%		46.51	%		51.30	%		49.98	%

	09/30/12
Asset Quality Ratios

Total nonperforming loans before OCC guidance	$	45,910
Add: Chapter 7 bankruptcies net of chargeoffs		4,015
Total nonperforming loans after OCC guidance		49,925

Total nonperforming assets before OCC guidance	$	54,601
Add: Chapter 7 bankruptcies net of chargeoffs		4,015
Total nonperforming assets after OCC guidance		58,616

Total loans before OCC guidance	$	2,606,745
Less: Chapter 7 bankruptcies chargeoffs		804
Total loans after OCC guidance		2,605,941

Total allowance for loan losses before OCC guidance	$	48,168
Less: Chapter 7 bankruptcies chargeoffs		804
Total allowance for loan losses after OCC guidance		47,364

Net chargeoffs before OCC guidance	$	2,750
Add: Chapter 7 bankruptcies chargeoffs		804
Net chargeoffs after OCC guidance		3,554

Nonperforming loans to total loans before OCC guidance		1.76	%
Nonperforming loans to total loans after OCC guidance		1.92	%
Nonperforming assets to total assets before OCC guidance		1.26	%
Nonperforming assets to total assets after OCC guidance		1.36	%
Allowance for loan losses to total loans before OCC guidance		1.85	%
Allowance for loan losses to total loans after OCC guidance		1.82	%
Coverage ratio before OCC guidance		104.9	%
Coverage ratio after OCC guidance		94.9	%
Annualized net chargeoffs to average loans before OCC guidance		0.43	%
Annualized net chargeoffs to average loans after OCC guidance		0.55	%
Allowance for loan losses to annualized net chargeoffs before OCC guidance		4.4	x
Allowance for loan losses to annualized net chargeoffs after OCC guidance		3.3	x

Subsidiary: Trustco Bank			NASDAQ -- TRST

Contact: Kevin T. Timmons
Vice President/Treasurer
(518) 381-3607

		News Release
5 Sarnowski Drive, Glenville, New York, 12302
(518) 377-3311 Fax: (518) 381-3668