Exhibit 99(a)

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

TrustCo Announces Increased First Quarter 2017 Earnings

Executive Snapshot:

Continued solid financial results:

Key metrics for first quarter of 2017 results:

Net income of $10.9 million in the first quarter of 2017 compared to $10.4 million in the first quarter of 2016 and $10.8 in the fourth quarter of 2016

Return on average assets (ROA) of 0.91% compared to 0.89% in the first quarter of 2016

Return on average equity (ROE) of 10.17% compared to 9.98% in the first quarter of 2016

Efficiency ratio of 55.81% compared to 56.22% in the first quarter of 2016 (Non-GAAP measure; see P. 10 for definition)

Asset quality remains solid:

Asset quality measures improved compared to the first quarter of 2016

Nonperforming assets (NPAs) fell by $6.4 million compared to March 31, 2016

NPAs to total assets improved to 0.61%, compared to 0.76% at March 31, 2016

Quarterly net chargeoffs decreased to 0.05% of average loans on an annualized basis, compared to 0.14% for the first quarter of 2016, reaching the lowest level since 2008

Continued expansion of customer base:

Focus on capitalizing on opportunities presented by expanded branch network

Average deposits per branch grew $587 thousand to $29.2 million from March 31, 2016 to March 31, 2017

Average core (non-maturity) deposits were $75 million higher in the first quarter of 2017 compared to the first quarter of 2016

Loan portfolio reaches all-time high:

Average loans were up $142 million for the first quarter of 2017 compared to first quarter of 2016

At $3.45 billion as of March 31, 2017, loans reached an all-time high

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FOR IMMEDIATE RELEASE:

TrustCo Announces Increased First Quarter 2017 Earnings

Glenville, New York – April 21, 2017

TrustCo Bank Corp NY (TrustCo, Nasdaq: TRST) today announced first quarter of 2017 net income of $10.9 million compared to $10.4 million for the first quarter of 2016, an increase of 5.2%.

Summary

Robert J. McCormick, President and Chief Executive Officer noted, “We are pleased to be able to report an increase in earnings in the first quarter of 2017 as compared to the first quarter of 2016. Improved revenue growth provided an encouraging start to 2017. Our focus on traditional lending criteria and conservative balance sheet management has enabled us to produce consistent earnings, maintain strong liquidity and capital and allowed us to continue to grow our business and take advantage of changes in market and competitive conditions. In terms of our core business, we continue to add customer relationships, which ultimately drive future growth. We will continue to take advantage of opportunities as they are presented during the balance of 2017 and beyond.”

TrustCo saw continued solid loan growth in the first quarter of 2017 compared to the prior year, led by an increase in residential mortgages. Loan portfolio expansion was funded by a combination of utilizing a portion of our strong cash balances and by the growth of our deposit base. The continued shift toward loans helped offset the margin impact from continued comparatively low yields on cash and investments, although the recent moves by the Federal Reserve to raise short term interest rates have contributed to our results and will provide a further benefit in the second quarter of 2017 and beyond. The growth in average deposits in the first quarter of 2017 versus the prior year was led by lower cost checking and savings deposits. TrustCo’s strong liquidity position continues to allow it to take advantage of opportunities when interest rate conditions change.

Asset quality measures improved versus March 31, 2016, with nonperforming assets (NPAs) declining $6.4 million.

Details

Average loans were up $142.5 million or 4.3% in the first quarter of 2017 over the same period in 2016. Loan growth in the first quarter is typically slowed by weather conditions in our New York markets. Average residential loans, our primary lending focus, were up $185.2 million or 6.8% in the first quarter of 2017, over the same period in 2016. Overall loan growth was constrained by a $13.8 million decline in average commercial loans, which have become less attractive on a risk adjusted basis, and a $28.5 million decline in average outstandings on home equity lines of credit, as well as a small decline in installment loans. Average deposits were up $74.3 million or 1.8% for the first quarter of 2017 over the same period a year earlier. The increase in deposits came from core deposit accounts, which consist of checking, savings and money market deposits, although checking and savings were entirely responsible for the growth within core deposits. Average core deposits increased $74.8 million from the first quarter of 2016 to the first quarter of 2017, while average time deposit balances were down slightly. Within core, money market balances were down $23.8 million, while checking was up $86.3 million (including interest bearing and non-interest bearing balances) and savings were up $12.3 million. Core deposits typically represent longer term customer relationships and are generally lower cost than time deposits. The cost of interest bearing deposits declined from 0.39% in the first quarter of 2016 to 0.35% in the first quarter of 2017. The shift out of money market balances was also beneficial, as that category is the most expensive type of core deposit. Mr. McCormick noted that, “The year-over-year growth of our loans and core deposit base reflect the long term strategic focus of the Company.”

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For the first quarter of 2017, return on average assets and return on average equity were 0.91% and 10.17%, respectively, compared to 0.89% and 9.98% for the first quarter of 2016. Diluted earnings per share were $0.114 for the first quarter of 2017, compared to $0.109 for the first quarter of 2016. As discussed in recent quarters, increased operating costs in response to regulatory requirements have pushed overall expense levels higher. However, revenue growth exceeded the increase in costs in the first quarter of 2017 as compared to the first quarter of 2016. We anticipate being able to control expense growth effectively in 2017. Some of the costs associated with regulatory issues will be recurring, but others will diminish over time.

“While some banks have backed away from branches, a customer-friendly branch franchise continues to be the key to our long term plans. We continue to make good progress expanding loans and deposits throughout our entire branch network. We expect that trend to continue as the newer branches continue to mature.”

“At March 31, 2017, our average deposits per branch were $29.2 million, compared to $28.6 million a year earlier. We have always designed our branches to be smaller and more cost effective than those built by many of our competitors. We use open floor plans that help maximize the value of our branches. We remain mindful that fully achieving our goals for newer branches will take time and continued work. We believe success in growing customer relationships provides basic building blocks that will help drive profit growth for the coming years.”

Asset quality and loan loss reserve measures improved versus March 31, 2016. Nonperforming loans (NPLs) were $26.4 million at March 31, 2017, compared to $30.4 million at March 31, 2016. NPLs were equal to 0.77% of total loans at March 31, 2017, compared to 0.92% at March 31, 2016. The coverage ratio, or allowance for loan losses to NPLs, was 166.7% at March 31, 2017, compared to 146.3% at March 31, 2016. Nonperforming assets (NPAs) were $29.6 million at March 31, 2017 compared to $36.0 million at March 31, 2016. The ratio of loan loss allowance to total loans was 1.28% as of March 31, 2017, compared to 1.34% at March 31, 2016 and reflects both the improvement in asset quality and economic conditions in our lending areas. The allowance for loan losses was $44.0 million at March 31, 2017 compared to $44.4 million at March 31, 2016. Net chargeoffs for the first quarter of 2017 decreased versus the first quarter of 2016, falling to $442 thousand from $1.2 million in the year earlier period. The annualized net chargeoff ratio was 0.05% for the first quarter of 2017, compared to 0.14% in the first quarter of 2016 and was at the lowest level since the first quarter of 2008. The provision for loan losses was $600 thousand for the first quarter of 2017, compared to $800 thousand in the first quarter of 2016.

The net interest margin for the first quarter of 2017 was 3.14%, up one basis point versus both the fourth quarter of 2016 and the first quarter of 2016.

At March 31, 2017 the equity to asset ratio was 8.98%, compared to 8.88% at March 31, 2016. Book value per share at March 31, 2017 was $4.57 compared to $4.44 a year earlier.

TrustCo Bank Corp NY is a $4.9 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 March 31, 2017.

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.

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A conference call to discuss first quarter 2017 results will be held at 9:00 a.m. Eastern Time on April 24, 2017. 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 10105301. The call will also be audio webcast at: http://services.choruscall.com/links/trst170424.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 2017 and for 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.

Page | 4

TRUSTCO BANK CORP NY

GLENVILLE, NY

FINANCIAL HIGHLIGHTS

(dollars in thousands, except per share data)
(Unaudited)
	Three Months Ended
	03/31/17			12/31/16		03/31/16
Summary of operations
Net interest income (TE)	$	37,413			36,921		36,196
Provision for loan losses		600			600		800
Noninterest income, excluding net gain on securities transactions		4,727			4,512		4,572
Noninterest expense		24,019			23,365		23,439
Net income		10,947			10,798		10,409

Per common share
Net income per share:
- Basic	$	0.114			0.113		0.109
- Diluted		0.114			0.113		0.109
Cash dividends		0.066			0.066		0.066
Book value at period end		4.57			4.52		4.44
Market price at period end		7.85			8.75		6.06

At period end
Full time equivalent employees		802			808		784
Full service banking offices		144			145		145

Performance ratios
Return on average assets		0.91	%		0.89		0.89
Return on average equity		10.17			9.87		9.98
Efficiency (1)		55.81			54.65		56.22
Net interest spread (TE)		3.08			3.07		3.07
Net interest margin (TE)		3.14			3.13		3.13
Dividend payout ratio		57.47			58.20		60.13

Capital ratio at period end
Consolidated equity to assets		8.98	%		8.89		8.88
Consolidated tangible equity to tangible assets (2)		8.97	%		8.88		8.87

Asset quality analysis at period end
Nonperforming loans to total loans		0.77			0.73		0.92
Nonperforming assets to total assets		0.61			0.60		0.76
Allowance for loan losses to total loans		1.28			1.28		1.34
Coverage ratio (3)		1.7	x		1.8		1.5

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

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

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

TE = Taxable equivalent.

Page | 5

CONSOLIDATED STATEMENTS OF INCOME

(dollars in thousands, except per share data)

(Unaudited)

	Three Months Ended
	3/31/2017		12/31/2016		9/30/2016		6/30/2016		3/31/2016
Interest and dividend income:
Interest and fees on loans	$	36,044		36,251		36,171		35,652		35,605
Interest and dividends on securities available for sale:
U. S. government sponsored enterprises		595		422		408		404		255
State and political subdivisions		12		12		13		13		14
Mortgage-backed securities and collateralized mortgage obligations-residential		1,958		1,849		1,829		2,169		2,116
Corporate bonds		151		149		97		-		-
Small Business Administration-guaranteed participation securities		415		430		445		450		476
Mortgage-backed securities and collateralized mortgage obligations-commercial		23		23		36		38		36
Other securities		4		4		4		4		4
Total interest and dividends on securities available for sale		3,158		2,889		2,832		3,078		2,901

Interest on held to maturity securities:
Mortgage-backed securities and collateralized mortgage obligations-residential		316		331		347		374		402
Corporate bonds		154		153		156		154		154
Total interest on held to maturity securities		470		484		503		528		556

Federal Reserve Bank and Federal Home Loan Bank stock		134		133		131		118		120

Interest on federal funds sold and other short-term investments		1,246		865		866		832		844
Total interest income		41,052		40,622		40,503		40,208		40,026

Interest expense:
Interest on deposits:
Interest-bearing checking		124		123		120		116		114
Savings		430		436		504		604		604
Money market deposit accounts		466		459		463		467		496
Time deposits		2,283		2,406		2,468		2,460		2,373
Interest on short-term borrowings		349		291		281		262		257
Total interest expense		3,652		3,715		3,836		3,909		3,844

Net interest income		37,400		36,907		36,667		36,299		36,182

Provision for loan losses		600		600		750		800		800
Net interest income after provision for loan losses		36,800		36,307		35,917		35,499		35,382

Noninterest income:
Trustco Financial Services income		1,858		1,422		1,347		1,512		1,605
Fees for services to customers		2,637		2,795		2,664		2,737		2,661
Net gain on securities transactions		-		-		-		668		-
Other		232		295		718		282		306
Total noninterest income		4,727		4,512		4,729		5,199		4,572

Noninterest expenses:
Salaries and employee benefits		10,210		9,576		8,995		8,934		9,003
Net occupancy expense		4,109		4,185		3,887		3,918		4,088
Equipment expense		1,556		1,370		1,596		1,840		1,514
Professional services		1,928		1,997		1,959		2,098		2,146
Outsourced services		1,500		1,775		1,465		1,425		1,551
Advertising expense		713		727		489		570		729
FDIC and other insurance		1,047		901		1,127		1,949		1,990
Other real estate expense, net		499		721		895		423		519
Other		2,457		2,113		2,636		2,817		1,899
Total noninterest expenses		24,019		23,365		23,049		23,974		23,439

Income before taxes		17,508		17,454		17,597		16,724		16,515
Income taxes		6,561		6,656		6,667		6,260		6,106

Net income	$	10,947		10,798		10,930		10,464		10,409
Net income per common share:
- Basic	$	0.114		0.113		0.114		0.110		0.109

- Diluted		0.114		0.113		0.114		0.109		0.109

Average basic shares (in thousands)		95,879		95,732		95,603		95,487		95,365
Average diluted shares (in thousands)		95,987		95,877		95,722		95,580		95,412

Note: Taxable equivalent net interest income	$	37,413		36,921		36,681		36,311		36,196

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CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

(dollars in thousands)

(Unaudited)

	3/31/2017			12/31/2016			9/30/2016			6/30/2016			3/31/2016
ASSETS:

Cash and due from banks	$	41,352			48,719			42,296			39,787			37,373
Federal funds sold and other short term investments		641,839			658,555			622,132			718,609			722,805
Total cash and cash equivalents		683,191			707,274			664,428			758,396			760,178

Securities available for sale:
U. S. government sponsored enterprises		162,341			117,266			116,327			116,595			66,920
States and political subdivisions		887			886			970			974			974
Mortgage-backed securities and collateralized mortgage obligations-residential		357,683			372,308			400,575			404,138			422,189
Small Business Administration-guaranteed participation securities		75,429			78,499			84,687			87,740			89,053
Mortgage-backed securities and collateralized mortgage obligations-commercial		9,923			10,011			10,233			10,374			10,307
Corporate bonds		40,612			40,705			41,025			-			-
Other securities		685			685			685			685			685
Total securities available for sale		647,560			620,360			654,502			620,506			590,128

Held to maturity securities:
Mortgage-backed securities and collateralized mortgage obligations-residential		33,276			35,500			38,044			40,702			43,595
Corporate bonds		9,994			9,990			9,986			9,982			9,979
Total held to maturity securities		43,270			45,490			48,030			50,684			53,574

Federal Reserve Bank and Federal Home Loan Bank stock		9,579			9,579			9,579			9,579			9,480

Loans:
Commercial		184,451			191,194			189,795			195,698			198,765
Residential mortgage loans		2,929,928			2,895,733			2,845,876			2,786,951			2,737,784
Home equity line of credit		326,280			334,841			343,445			352,069			356,163
Installment loans		8,277			8,818			8,515			8,476			8,667
Loans, net of deferred net costs		3,448,936			3,430,586			3,387,631			3,343,194			3,301,379
Less:
Allowance for loan losses		44,048			43,890			43,950			44,064			44,398
Net loans		3,404,888			3,386,696			3,343,681			3,299,130			3,256,981

Bank premises and equipment, net		35,175			35,466			36,110			36,793			37,360
Other assets		63,080			63,941			56,519			55,825			55,561

Total assets	$	4,886,743			4,868,806			4,812,849			4,830,913			4,763,262

LIABILITIES:
Deposits:
Demand	$	373,930			377,755			380,090			376,669			359,060
Interest-bearing checking		838,936			815,534			785,118			766,322			746,562
Savings accounts		1,287,802			1,271,449			1,277,734			1,282,006			1,272,394
Money market deposit accounts		583,909			571,962			566,097			577,063			595,585
Time deposits		1,113,892			1,159,463			1,159,199			1,178,567			1,168,887
Total deposits		4,198,469			4,196,163			4,168,238			4,180,627			4,142,488

Short-term borrowings		220,946			209,406			179,204			190,542			169,528
Accrued expenses and other liabilities		28,628			30,551			29,799			29,479			28,221

Total liabilities		4,448,043			4,436,120			4,377,241			4,400,648			4,340,237

SHAREHOLDERS' EQUITY:
Capital stock		99,493			99,214			99,121			99,071			98,973
Surplus		172,628			171,425			171,093			171,174			171,113
Undivided profits		206,173			201,517			197,013			192,356			188,159
Accumulated other comprehensive (loss) income, net of tax		(5,568	)		(6,251	)		2,328			2,395			73
Treasury stock at cost		(34,026	)		(33,219	)		(33,947	)		(34,731	)		(35,293	)

Total shareholders' equity		438,700			432,686			435,608			430,265			423,025

Total liabilities and shareholders' equity	$	4,886,743			4,868,806			4,812,849			4,830,913			4,763,262

Outstanding shares (in thousands)		95,917			95,780			95,614			95,493			95,369

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NONPERFORMING ASSETS

(dollars in thousands)

(Unaudited)

Nonperforming Assets
	03/31/17		12/31/16		09/30/16		06/30/16		03/31/16
New York and other states*
Loans in nonaccrual status:
Commercial	$	1,858		1,843		2,366		2,690		2,762
Real estate mortgage - 1 to 4 family		22,772		21,198		21,678		23,559		25,669
Installment		41		48		70		49		74
Total non-accrual loans		24,671		23,089		24,114		26,298		28,505
Other nonperforming real estate mortgages - 1 to 4 family		41		42		44		45		47
Total nonperforming loans		24,712		23,131		24,158		26,343		28,552
Other real estate owned		3,191		4,268		4,768		4,602		5,208
Total nonperforming assets	$	27,903		27,399		28,926		30,945		33,760

Florida
Loans in nonaccrual status:
Commercial	$	-		-		-		-		-
Real estate mortgage - 1 to 4 family		1,712		1,929		1,844		1,900		1,802
Installment		-		-		-		-		-
Total non-accrual loans		1,712		1,929		1,844		1,900		1,802
Other nonperforming real estate mortgages - 1 to 4 family		-		-		-		-		-
Total nonperforming loans		1,712		1,929		1,844		1,900		1,802
Other real estate owned		-		-		-		-		476
Total nonperforming assets	$	1,712		1,929		1,844		1,900		2,278

Total
Loans in nonaccrual status:
Commercial	$	1,858		1,843		2,366		2,690		2,762
Real estate mortgage - 1 to 4 family		24,484		23,127		23,522		25,459		27,471
Installment		41		48		70		49		74
Total non-accrual loans		26,383		25,018		25,958		28,198		30,307
Other nonperforming real estate mortgages - 1 to 4 family		41		42		44		45		47
Total nonperforming loans		26,424		25,060		26,002		28,243		30,354
Other real estate owned		3,191		4,268		4,768		4,602		5,684
Total nonperforming assets	$	29,615		29,328		30,770		32,845		36,038

Quarterly Net Chargeoffs (Recoveries)
	03/31/17			12/31/16			09/30/16			06/30/16			03/31/16
New York and other states*
Commercial	$	64			(56	)		353			67			224
Real estate mortgage - 1 to 4 family		261			619			471			973			771
Installment		31			55			37			77			70
Total net chargeoffs	$	356			618			861			1,117			1,065

Florida
Commercial	$	-			-			-			-			-
Real estate mortgage - 1 to 4 family		84			23			-			16			83
Installment		2			19			3			1			16
Total net chargeoffs	$	86			42			3			17			99

Total
Commercial	$	64			(56	)		353			67			224
Real estate mortgage - 1 to 4 family		345			642			471			989			854
Installment		33			74			40			78			86
Total net chargeoffs	$	442			660			864			1,134			1,164


Asset Quality Ratios
	03/31/17			12/31/16			09/30/16			06/30/16			03/31/16

Total nonperforming loans(1)	$	26,424			25,060			26,002			28,243			30,354
Total nonperforming assets(1)		29,615			29,328			30,770			32,845			36,038
Total net chargeoffs(2)		442			660			864			1,134			1,164

Allowance for loan losses(1)		44,048			43,890			43,950			44,064			44,398

Nonperforming loans to total loans		0.77	%		0.73	%		0.77	%		0.84	%		0.92	%
Nonperforming assets to total assets		0.61	%		0.60	%		0.64	%		0.68	%		0.76	%
Allowance for loan losses to total loans		1.28	%		1.28	%		1.30	%		1.32	%		1.34	%
Coverage ratio(1)		166.7	%		175.1	%		169.0	%		156.0	%		146.3	%
Annualized net chargeoffs to average loans(2)		0.05	%		0.08	%		0.10	%		0.14	%		0.14	%
Allowance for loan losses to annualized net chargeoffs(2)		24.9	x		16.6	x		12.7	x		9.7	x		9.5	x

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

(1)	At period-end

(2)	For the period ended

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DISTRIBUTION OF ASSETS, LIABILITIES AND SHAREHOLDERS' EQUITY-

INTEREST RATES AND INTEREST DIFFERENTIAL

(dollars in thousands) (Unaudited)	Three months ended March 31, 2017									Three months ended March 31, 2016
	Average Balance			Interest			Average Rate			Average Balance			Interest			Average Rate

Assets

Securities available for sale:
U.S. government sponsored enterprises	$	142,495			595			1.67	%	$	75,031			255			1.36	%
Mortgage backed securities and collateralized mortgage obligations-residential		367,956			1,958			2.13			412,499			2,116			2.05
State and political subdivisions		873			19			8.71			1,114			22			7.90
Corporate bonds		41,580			151			1.45			-			-			-
Small Business Administration-guaranteed participation securities		78,591			415			2.11			90,611			476			2.10
Mortgage backed securities and collateralized mortgage obligations-commercial		10,089			23			0.91			10,394			36			1.40
Other		685			4			2.34			685			4			2.34

Total securities available for sale		642,269			3,165			1.97			590,334			2,909			1.97

Federal funds sold and other short-term Investments		641,126			1,246			0.78			675,586			844			0.50

Held to maturity securities:
Corporate bonds		9,992			154			6.16			9,977			154			6.17
Mortgage backed securities and collateralized mortgage obligations-residential		34,303			316			3.68			45,112			402			3.56

Total held to maturity securities		44,295			470			4.24			55,089			556			4.03

Federal Reserve Bank and Federal Home Loan Bank stock		9,579			134			5.60			9,480			120			5.06

Commercial loans		187,590			2,429			5.18			201,367			2,617			5.20
Residential mortgage loans		2,911,987			30,367			4.17			2,726,811			29,622			4.35
Home equity lines of credit		330,338			3,085			3.74			358,817			3,179			3.56
Installment loans		8,228			169			8.22			8,659			193			8.94

Loans, net of unearned income		3,438,143			36,050			4.19			3,295,654			35,611			4.33

Total interest earning assets		4,775,412			41,065			3.44			4,626,143			40,040			3.47

Allowance for loan losses		(44,236	)								(45,271	)
Cash & non-interest earning assets		130,186									135,532

Total assets	$	4,861,362								$	4,716,404

Liabilities and shareholders' equity

Deposits:
Interest bearing checking accounts	$	809,039			124			0.06	%	$	735,098			114			0.06	%
Money market accounts		580,006			466			0.32			603,774			496			0.33
Savings		1,274,757			430			0.13			1,262,467			604			0.19
Time deposits		1,133,942			2,283			0.81			1,134,459			2,373			0.84

Total interest bearing deposits		3,797,744			3,303			0.35			3,735,798			3,587			0.39
Short-term borrowings		229,719			349			0.61			176,119			257			0.59

Total interest bearing liabilities		4,027,463			3,652			0.36			3,911,917			3,844			0.40

Demand deposits		370,552									358,224
Other liabilities		26,781									26,917
Shareholders' equity		436,566									419,346

Total liabilities and shareholders' equity	$	4,861,362								$	4,716,404

Net interest income, tax equivalent					37,413									36,196

Net interest spread								3.08	%								3.07	%

Net interest margin (net interest income to total interest earning assets)								3.14	%								3.13	%

Tax equivalent adjustment					(13	)								(14	)

Net interest income					37,400									36,182

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Non-GAAP Financial Measures Reconciliation

Tangible equity as a percentage of tangible assets at period end is a non-GAAP financial measure 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 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.

The efficiency ratio is a non-GAAP measure of expense control relative to revenue from net interest income and fee income. We calculate the efficiency ratio by dividing total noninterest expenses as determined under GAAP, but excluding other real estate expense, net, by net interest income (fully taxable equivalent) and total noninterest income as determined under GAAP, but excluding net gains on the sale of nonperforming loans and securities from this calculation. We believe that this provides a reasonable measure of primary banking expenses relative to primary banking revenue.

We believe that these non-GAAP financial measures provide information that is important to investors and that is useful in understanding our financial results. Our management internally assesses our performance based, in part, on these measures. However, these non-GAAP financial measures are supplemental and 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, efficiency ratio, net income and net income per share to the underlying GAAP numbers is set forth below.

NON-GAAP FINANCIAL MEASURES RECONCILIATION

(dollars in thousands, except per share amounts)
(Unaudited)
	03/31/17			12/31/16			03/31/16
Tangible Equity to Tangible Assets
Total Assets		4,886,743			4,868,806			4,763,262
Less: Intangible assets		553			553			553
Tangible assets		4,886,190			4,868,253			4,762,709

Equity	$	438,700			432,686			423,025
Less: Intangible assets		553			553			553
Tangible equity		438,147			432,133			422,472
Tangible Equity to Tangible Assets		8.97	%		8.88	%		8.87	%
Equity to Assets		8.98	%		8.89	%		8.88	%

	3 Months Ended
Efficiency Ratio	03/31/17			12/31/16			03/31/16

Net interest income	$	37,400			36,907			36,182
Taxable equivalent adjustment		13			14			14
Net interest income (fully taxable equivalent)		37,413			36,921			36,196
Non-interest income		4,727			4,512			4,572
Revenue used for efficiency ratio		42,140			41,433			40,768

Total noninterest expense		24,019			23,365			23,439
Less: Other real estate expense, net		499			721			519
Expense used for efficiency ratio		23,520			22,644			22,920

Efficiency Ratio		55.81	%		54.65	%		56.22	%

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