ex99a.htm

News Release

5 Sarnowski Drive, Glenville, New York, 12302

(518) 377-3311 Fax: (518) 381-3668

Subsidiary: Trustco Bank

NASDAQ -- TRST

Contact:

Kevin T. Timmons

Vice President/Treasurer

(518) 381-3607

FOR IMMEDIATE RELEASE:

TrustCo Announces Third Quarter Net Income of $9.0 Million

Glenville, New York – October 21, 2008

TrustCo Bank Corp NY (TrustCo, Nasdaq: TRST) is pleased to announce net income for the third quarter of 2008 of $9.0 million, equal to diluted earnings per share of $0.119, as compared to net income of $8.5 million and diluted earnings per share of $0.112 for the second quarter of 2008. Earnings were $10.6 million or $0.141 per share for the third quarter of 2007. Return on average equity and return on average assets were 15.41% and 1.05%, respectively, for the third quarter of 2008, compared to 14.72% and 0.99% for the second quarter of 2008 and to 18.45% and 1.26% for the third quarter of 2007.

For the first nine months of 2008 net income was $26.9 million and resulted in diluted earnings per share of $0.356, as compared to the first nine months of 2007 that resulted in net income of $31.1 million and diluted earnings per share of $0.413. Return on average assets and return on average equity was 1.05% and 15.53%, respectively, for the first nine months of 2008 and 1.27% and 18.07% for the comparable period in 2007.

Making the earnings announcement was Robert J. McCormick, President and Chief Executive Officer. Mr. McCormick noted, “The financial markets crisis continues to cause repercussions around the world, with many banks and financial services firms reporting large losses, being forced into mergers and in some cases, going out of business. TrustCo has long focused on maintaining a highly conservative balance sheet, particularly in terms of liquidity and asset quality, and has never been involved in direct subprime lending, which has been one of the biggest causes of these widely reported industry problems. One measure of liquidity is the loan-to-deposit ratio, where TrustCo’s ratio of 65% compares to 101% for the peer group. The difference represents a large safety net when times are tough, but also an opportunity that will allow our Company to conduct business in a way that other institutions with less liquidity will not be able to. TrustCo’s long-term focus on traditional lending criteria has helped it maintain strong asset quality. Although maintaining our conservative stance may have slightly reduced profits in prior periods, our strength today is the result. Our return on equity levels remain among the leaders in our industry.”

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Results for the first nine months of 2007 include net trading gains of $0.9 million, compared to net trading losses of $0.2 million in the first nine months of 2008. Results for the third quarter of 2008 included net trading gain of $14 thousand, compared to $0.3 million of gains in the third quarter of 2007.

TrustCo continued to report solid growth in both deposits and loans on a year-over-year basis. For the nine months ended September 30, 2008, average deposits were up $127 million, an increase of 4.3% compared to the first nine months of 2007. Average loans showed even stronger growth, rising $162 million or 8.9% for the first nine months of 2008 compared to the same period in 2007. During the third quarter of 2008, TrustCo’s branch network expanded to 118. Six offices were opened in the third quarter of 2008 and a total of eleven offices have been opened this year. Current plans call for the expansion program to continue in 2008 with new branches planned in the markets currently served. Mr. McCormick noted that, “We are pleased with the results of our expansion program but are mindful that achieving our goals will take time and continued hard work.”

The Company’s net interest margin was 3.04% for the third quarter of 2008, compared to 2.87% for the second quarter of 2008 and to 3.10% for the third quarter of 2007. Net income was also impacted by a loan loss provision of $1.0 million for the third quarter of 2008, compared to a zero provision in the third quarter of 2007 and a provision of $0.7 million for the second quarter of 2008.

Nonperforming loans continue at low levels and reserve coverage of those loans remains strong. At September 30, 2008, nonperforming loans were equal to 1.11% of total loans, while the allowance for loan losses was 1.5 times nonperforming loans. The allowance was equal to 1.68% of gross loans.

TrustCo Bank Corp is a $3.4 billion bank holding company and through its subsidiary, Trustco Bank, operates 118 offices in New York, New Jersey, Vermont, Massachusetts, and Florida.

In addition, the Bank operates a full service Trust Department. The common shares of TrustCo are traded on The NASDAQ Global Select Market under the symbol TRST.

Except for the historical information contained herein, the matters discussed in this news release and other information contained in TrustCo’s Securities and Exchange Commission filings may express “forward-looking statements.” Those “forward-looking statements” may involve risk and uncertainties, including statements containing future events or performance and assumptions and other statements of historical facts.

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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: (1) credit risk, (2) interest rate risk, (3) competition, (4) changes in the regulatory environment, (5) real estate and collateral values, and (6) changes in local market areas and general business and economic trends. The foregoing list should not be construed as exhaustive, and the Company disclaims any obligation to subsequently revise any forward-looking statements to reflect events or circumstances after the date of such statements, or to reflect the occurrence of anticipated or unanticipated events.

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TRUSTCO BANK CORP NY

GLENVILLE, NY

Page 8

FINANCIAL HIGHLIGHTS

(dollars in thousands, except per share data)

(Unaudited)

	Three Months Ended
	09/30/08			06/30/08			09/30/07
Summary of operations
Net interest income (TE)	$	25,292			24,212			25,314
Provision for loan losses		1,000			700			-
Net securities transactions		21			784			226
Net trading gains (losses)		14			(960	)		305
Noninterest income		4,759			4,113			4,220
Noninterest expense		14,726			14,347			13,597
Net income		9,034			8,469			10,640

Per common share
Net income per share:
- Basic	$	0.119			0.112			0.142
- Diluted		0.119			0.112			0.141
Cash dividends		0.110			0.110			0.160
Tangible Book value at period end		3.17			3.16			3.12
Market price at period end		11.71			7.42			10.93

At period end
Full time equivalent employees		696			688			649
Full service banking offices		118			112			105

Performance ratios
Return on average assets		1.05	%		0.99			1.26
Return on average equity (1)		15.41			14.72			18.45
Efficiency (2)		48.99			51.01			45.99
Net interest spread (TE)		2.74			2.54			2.66
Net interest margin (TE)		3.04			2.87			3.10
Dividend payout ratio		92.36			98.29			113.02

Capital ratios at period end (3)
Total equity to assets		6.91	%		6.73			6.93
Tier 1 risk adjusted capital		12.62			12.87			13.44
Total risk adjusted capital		13.88			14.13			14.70

Asset quality analysis at period end
Nonperforming loans to total loans		1.11	%		0.99			0.46
Nonperforming assets to total assets		0.71			0.63			0.27
Allowance for loan losses to total loans		1.68			1.73			1.82
Coverage ratio (4)		1.5	X		1.8			3.9

(1)	Average equity excludes the effect of accumulated other comprehensive income (loss).

(2)

Calculated as noninterest expense (excluding other real estate owned income/expense, specialized consulting and any one-time charges) divided by taxable equivalent net interest income plus noninterest income (excluding net securities transactions, net trading gains and losses and one-time income items).

(3)	Capital ratios exclude the effect of accumulated other comprehensive income (loss).

(4)	Calculated as allowance for loan losses divided by total nonperforming loans.

TE = Taxable equivalent.

FINANCIAL HIGHLIGHTS, Continued

Page 9

(dollars in thousands, except per share data)

(Unaudited)

	Nine Months Ended
	09/30/08			09/30/07
Summary of operations
Net interest income (TE)	$	74,654			74,573
Provision for loan losses		2,000			-
Net securities transactions		439			229
Net trading (losses) gains		(229	)		906
Noninterest income		13,062			12,310
Noninterest expense		43,637			39,761
Net income		26,930			31,061

Per common share
Net income per share:
- Basic	$	0.356			0.414
- Diluted		0.356			0.413
Cash dividends		0.330			0.480
Tangible Book value at period end		3.17			3.12
Market price at period end		11.71			10.93

Performance ratios
Return on average assets		1.05	%		1.27
Return on average equity (1)		15.53			18.07
Efficiency (2)		49.65			45.22
Net interest spread (TE)		2.65			2.67
Net interest margin (TE)		3.00			3.11
Dividend payout ratio		92.74			115.91

(1)	Average equity excludes the effect of accumulated other comprehensive income (loss).

(2)

TE = Taxable equivalent.

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

Page 10

(dollars in thousands)

(Unaudited)

	09/30/08		12/31/07		09/30/07


ASSETS

Loans, net	$	2,051,007		1,900,263		1,876,753
Trading securities		252,879		465,151		450,513
Securities available for sale		524,480		578,892		580,099
Held to maturity securities		110,688		15,000		25,000
Federal funds sold and other short-term investments		340,627		286,764		274,396

Total earning assets		3,279,681		3,246,070		3,206,761

Cash and due from banks		61,725		58,156		48,275
Bank premises and equipment		32,840		29,193		28,656
Other assets		54,026		44,132		57,495

Total assets	$	3,428,272		3,377,551		3,341,187

LIABILITIES
Deposits:
Demand	$	258,461		262,863		258,978
Interest-bearing checking		317,568		293,027		275,839
Savings		598,349		609,064		619,251
Money market		287,285		341,790		358,131
Certificates of deposit (in denominations of $100,000 or more)		415,100		390,328		370,990
Other time deposits		1,176,279		1,123,226		1,101,221

Total deposits		3,053,042		3,020,298		2,984,410

Short-term borrowings		110,221		92,220		93,865
Long-term debt		5		29		36
Other liabilities		23,886		27,936		28,060

Total liabilities		3,187,154		3,140,483		3,106,371

SHAREHOLDERS' EQUITY		241,118		237,068		234,816

Total liabilities and shareholders' equity	$	3,428,272		3,377,551		3,341,187

Number of common shares outstanding, in thousands		75,867		75,326		75,140

CONSOLIDATED STATEMENTS OF INCOME

Page 11

(dollars in thousands, except per share data)

(Unaudited)

	Three Months Ended
	09/30/08		06/30/08			09/30/07

Interest income
Loans	$	31,066		30,030		$	31,039
Investments		8,988		8,990			12,851
Federal funds sold and other short term investments		1,999		3,037			4,949

Total interest income		42,053		42,057			48,839

Interest expense
Deposits		16,871		18,135			23,342
Borrowings		483		449			942

Total interest expense		17,354		18,584			24,284

Net interest income		24,699		23,473			24,555

Provision for loan losses		1,000		700			-

Net interest income after provision for loan losses		23,699		22,773			24,555

Net securities transactions		21		784			226
Trading gains (losses)		14		(960	)		305
Noninterest income		4,759		4,113			4,220
Noninterest expense		14,726		14,347			13,597

Income before income taxes		13,767		12,363			15,709
Income tax expense		4,733		3,894			5,069

Net income	$	9,034		8,469		$	10,640


Net income per share:
- Basic	$	0.119		0.112		$	0.142
- Diluted	$	0.119		0.112		$	0.141

Avg equivalent shares outstanding, in thousands:
- Basic		75,833		75,675			75,166
- Diluted		75,845		75,677			75,267

CONSOLIDATED STATEMENTS OF INCOME

Page 12

(dollars in thousands, except per share data)

(Unaudited)

	Nine Months Ended
	09/30/08			09/30/07

Interest income
Loans	$	91,880			89,236
Investments		29,532			37,188
Federal funds sold and other short term investments		8,017			15,244

Total interest income		129,429			141,668

Interest expense
Deposits		55,351			66,485
Borrowings		1,508			2,925

Total interest expense		56,859			69,410

Net interest income		72,570			72,258

Provision for loan losses		2,000			-

Net interest income after provision for loan losses		70,570			72,258

Net securities transactions		439			229
Trading (losses) gains		(229	)		906
Noninterest income		13,062			12,310
Noninterest expense		43,637			39,761

Income before income taxes		40,205			45,942
Income tax expense		13,275			14,881

Net income	$	26,930			31,061


Net income per share:
- Basic	$	0.356			0.414
- Diluted	$	0.356			0.413

Avg equivalent shares outstanding, in thousands:
- Basic		75,672			75,054
- Diluted		75,680			75,130