EX-99.(A) 2 brhc20056230_ex99-a.htm EXHIBIT 99.A
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:
Robert Leonard
 
Executive Vice President
 
(518) 381-3693

FOR IMMEDIATE RELEASE:

TrustCo Reports Second Quarter Net Income of $16.4 Million and $346 Million
of Loan Growth; Maintains Strong Liquidity and Demonstrates Deposit Stability

Executive Snapshot:


 •
Continued solid financial results:

o
Key metrics for second quarter 2023:

◾
Net income of $16.4 million in the second quarter 2023

◾
Net interest income of $44.1 million up 2.3% compared to $43.1 million in the second quarter of 2022

◾
Return on average assets (ROAA) of 1.09% in the second quarter 2023

◾
Return on average equity (ROAE) of 10.61% in the second quarter 2023

◾
Book value at period end was $32.66, up from $31.06 compared to June 30, 2022


•
Loan portfolio reaches all-time high:

o
Total loans were up $346.3 million or 7.6% for the second quarter 2023 compared to second quarter of 2022

o
At $4.9 billion as of June 30, 2023, loans continue to set new all-time highs


•
Quarter over quarter deposit growth:

o
Total deposits as of June 30, 2023 increased $46.0 million to $5.3 billion from March 31, 2023

o
Time deposits increased $162.7 million or 12.7% up from March 31, 2023


•
Superior asset quality:

o
Nonperforming loans (NPLs) were $19.4 million for the second quarter of 2023 and continue to remain at low levels

o
NPLs to total loans improved to 0.40% compared to 0.41% at June 30, 2022

o
Quarterly net recoveries were $229 thousand in the second quarter 2023, resulting in six consecutive quarters of net recoveries


•
Capital continues to grow:

o
Consolidated equity to assets increased to 10.23% at June 30, 2023 from 9.55% at June 30, 2022

Page | 1
Glenville, New York –July 24, 2023

TrustCo Bank Corp NY (TrustCo, NASDAQ: TRST) today announced second quarter 2023 net income of $16.4 million or $0.86 diluted earnings per share, compared to net income of $17.9 million or $0.93 diluted earnings per share for the second quarter 2022; and net income of $34.1 million or $1.79 diluted earnings per share for the six months ended June 30, 2023, compared to net income of $35.0 million or $1.82 diluted earnings per share for the six months ended June 30, 2022.  Total loan growth increased $346.3 million or 7.6% for the second quarter 2023 over the same period in 2022.

Overview

Chairman, President, and CEO, Robert J. McCormick said “The value of business fundamentals in corporate success cannot be overstated.  At Trustco Bank, our fundamental goals are to achieve strength and stability.  At the management level, we accomplish this by taking a long view on balance sheet management, avoiding trends and costly quick fixes. Our team then applies the fruit of that effort to deliver industry-leading deposit products that allow us to build customer relationships that endure over time and survive economic ups and downs.  The results announced today offer proof of the success of that work.  In a time when other banks are experiencing loss of deposits to non-bank investment products, through strong customer relationships we have seen deposit growth since year end. We have taken a careful approach to pricing and moderated downward pressure on net interest margin. Additionally, our industry best loan products continue to retain existing customers and attract new ones. All loan categories have grown each successive quarter since the same period in the prior year and have grown by $346 million year over year.  Once again, where others have faltered, Trustco Bank has excelled.  This success allows us to satisfy our driving goal – to provide our owners with a long-term, top-tier return on their investment.”

TrustCo continued to see deposit balances rebound from the end of the year with net deposit inflows during both the first and second quarters of 2023.  Loan growth continued in the second quarter 2023 compared to the prior year’s second quarter, 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 cash flow from investments, deposit inflows, and the existing loan portfolio.  The Federal Reserve’s decision to raise the target Federal Funds rate multiple times since March 2022 has contributed to our results in the second quarter 2023, as our cash position and other variable rate products continue to reprice upward, and are likely to continue to do so to the extent there are additional rate increases.  We also note that current mortgage rates significantly exceed the yield on our existing portfolio of mortgages, which, if sustained, should be positive to net interest margin going forward.  TrustCo’s strong liquidity position continues to allow us to take advantage of opportunities as they arise.

Details

Average loans were up $336.0 million or 7.5% in the second quarter 2023 over the same period in 2022.  Average residential loans, our primary lending focus, were up $220.0 million, or 5.4%, in the second quarter 2023 over the same period in 2022.  Average commercial loans and home equity lines of credit also increased $50.1 million or 25.2% and $59.5 million or 24.4%, respectively, in the second quarter 2023 over the same period in 2022.

Page | 2
We are actively retaining deposits, which is evident in the quarter over quarter results.  Total deposits as of June 30, 2023 increased $46.0 million to $5.3 billion from March 31, 2023.  As we move forward, our objective is to continue to encourage customers to retain these funds in the expanded product offerings of the Bank through aggressive marketing and product differentiation.  We understood the big inflows of deposits during the pandemic were temporary and that is why we did not invest that liquidity into securities or loans, but we instead retained that liquidity on the balance sheet for when the depositors would start to absorb the funds.  This gave us flexibility to strategically price deposits while retaining core customers.

Net interest income was $44.1 million for the second quarter 2023, an increase of $991 thousand or 2.3% compared to the same period in 2022, driven by a strong cash balance at the Federal Reserve Bank, loan growth, investment income, and the increases in the Federal Funds target rate over the past year.  The net interest margin for the second quarter 2023 was 2.98%, up 15 basis points from 2.83% in the second quarter of 2022.    The yield on interest earnings assets increased to 3.80%, up 90 basis points from 2.90% in the second quarter of 2022.  The cost of interest bearing liabilities increased to 1.06% in the second quarter 2023 from 0.10% in the second quarter 2022.  The increase in net interest income is primarily a result of our ability to maintain a $551.1 million average cash balance at the Federal Reserve Bank during the second quarter of 2023, continued strong loan volume, and being able to retain deposit balances at competitive market rates.

Asset quality remains strong and has been consistent over the past twelve months.  The Company recorded a benefit for credit losses of $500 thousand in the second quarter of 2023, which is the result of a benefit for credit losses on unfunded commitments of $500 thousand as a result of a corresponding decrease in unfunded loan commitments.  There was no provision for credit losses on loans during the second quarter of 2023.  The ratio of allowance for credit losses on loans to total loans was 0.96% and 1.00% as of June 30, 2023 and 2022, respectively.  The allowance for credit losses on loans was $46.9 million at June 30, 2023, compared to $45.3 million at June 30, 2022.  Nonperforming loans (NPLs) were $19.4 million at June 30, 2023, compared to $18.7 million at June 30, 2022.  NPLs were 0.40% and 0.41% of total loans at June 30, 2023 and 2022, respectively.  The coverage ratio, or allowance for credit losses on loans to NPLs, was 241.6% at June 30, 2023, compared to 242.0% at June 30, 2022.  Nonperforming assets (NPAs) were $20.8 million at June 30, 2023, compared to $19.4 million at June 30, 2022.  Additionally, we have also had minimal charge-offs, and have been in a net recovery position for the past six quarters.

At June 30, 2023 our equity to asset ratio was 10.23%, compared to 9.55% at June 30, 2022.  Book value per share at June 30, 2023 was $32.66, up 5.2% compared to $31.06 a year earlier.

A conference call to discuss second quarter 2023 results will be held at 9:00 a.m. Eastern Time on July 25, 2023.  Those wishing to participate in the call may dial toll-free for the United States at 1-833-470-1428, and for Canada at 1-833-950-0062, Access code 775800.  A replay of the call will be available for thirty days by dialing toll-free for the United States and Canada at 1-866-813-9403, Access code 419365.  The call will also be audio webcast at https://events.q4inc.com/attendee/812116418, and will be available for one year.

Page | 3
About TrustCo Bank Corp NY

TrustCo Bank Corp NY is a $6.1 billion savings and loan holding company and through its subsidiary, Trustco Bank, operated 143 offices in New York, New Jersey, Vermont, Massachusetts, and Florida at June 30, 2023.

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.

Page | 4
Forward-Looking Statements

All statements in this news release that are not historical are forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995.  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 development, results or periods. Examples of forward-looking statements include, among others, statements we make regarding our expectations for our performance during 2023, including our expectations regarding the effects of the economic environment on our financial results, our ability to retain customers and the amount of customers’ business, including deposit balances, with us, the impact of the Federal Reserve’s actions regarding interest rates, the growth of loans and deposits throughout our branch network, the increase in residential mortgage rates, and our ability to capitalize on economic changes in the areas in which we operate.  Forward-looking statements are based on management’s current expectations as well as certain assumptions and estimates made by, and information available to, management at the time the statements are made. Such forward-looking statements are subject to factors and uncertainties that could cause actual results to differ materially for TrustCo from the views, beliefs and projections expressed in such statements, and many of the risks and uncertainties are heightened by or may, in the future, be heightened by volatility in financial markets and macroeconomic or geopolitical concerns related to inflation, rising interest rates and the war in Ukraine. 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:  changes in interest rates, including recent and possible future increases fueled by inflation; inflationary pressures and rising prices; exposure to credit risk in our lending activities; the sufficiency of our allowance for credit losses on loans to cover actual loan losses; our ability to meet the cash flow requirements of our depositors or borrowers or meet our operating cash needs to fund corporate expansion and other activities; claims and litigation pertaining to fiduciary responsibility and lender liability; our dependency upon the services of the management team; our disclosure controls and procedures’ ability to prevent or detect errors or acts of fraud; the adequacy of our business continuity and disaster recovery plans; the effectiveness of our risk management framework; the chance of a prolonged economic downturn, especially one affecting our geographic market area; instability in global economic conditions and geopolitical matters, as well as volatility in financial markets; the COVID-19 pandemic; the soundness of other financial institutions; fluctuations in the trust wealth management fees we receive as a result of investment performance; the impact of regulatory capital rules on our growth; changes in laws and regulations; our compliance with the USA PATRIOT Act, Bank Secrecy Act, and other laws and regulations that could result in fines or sanctions; changes in tax laws; limitations on our ability to pay dividends; TrustCo Realty Corp.’s ability to qualify as a real estate investment trust; changes in accounting standards; competition within our market areas; consumers and businesses’ use of non-banks to complete financial transactions; our reliance on third-party service providers; the risk of data breaches and cyber-attacks; the risk of an unauthorized disclosure of sensitive or confidential client or customer information; the impact of any expansion by us into new lines of business or new products and services; the impact of severe weather events and climate change on us and the communities we serve, including societal responses to climate change; 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. The forward-looking statements contained in this news release represent TrustCo management’s judgment as of the date of this news release. TrustCo disclaims, however, any intent or obligation to update forward-looking statements, either as a result of future developments, new information or otherwise, except as may be required by law.

Page | 5
TRUSTCO BANK CORP NY
GLENVILLE, NY

FINANCIAL HIGHLIGHTS

(dollars in thousands, except per share data)

(Unaudited)

   
Three months ended
  
   
6/30/2023
    
3/31/2023
    
6/30/2022
  
Summary of operations
                  
Net interest income
  
$
44,052
    
$
46,965
    
$
43,060
  
(Credit) Provision for credit losses
    
(500
)
    
300
      
(491
)
Noninterest income
    
4,598
      
4,669
      
4,916
  
Noninterest expense
    
27,327
      
27,679
      
25,005
  
Net income
    
16,372
      
17,746
      
17,871
  
                         
Per share
                        
Net income per share:
                        
- Basic
  
$
0.86
    
$
0.93
    
$
0.93
  
- Diluted
    
0.86
      
0.93
      
0.93
  
Cash dividends
    
0.36
      
0.36
      
0.35
  
Book value at period end
    
32.66
      
32.31
      
31.06
  
Market price at period end
    
28.61
      
31.94
      
30.84
  
                         
At period end
                        
Full time equivalent employees
    
791
      
776
      
793
  
Full service banking offices
    
143
      
143
      
144
  
                         
Performance ratios
                        
Return on average assets
    
1.09
%
    
1.20
%
    
1.15
%
Return on average equity
    
10.61
      
11.84
      
12.08
  
Efficiency ratio (1)
    
55.87
      
53.17
      
51.97
  
Net interest spread
    
2.74
      
3.06
      
2.80
  
Net interest margin
    
2.98
      
3.21
      
2.83
  
Dividend payout ratio
    
41.83
      
38.59
      
37.46
  
                         
Capital ratios at period end
                        
Consolidated equity to assets
    
10.23
%
    
10.17
%
    
9.55
%
Consolidated tangible equity to tangible assets (2)
    
10.22
%
    
10.16
%
    
9.54
%
                         
Asset quality analysis at period end
                        
Nonperforming loans to total loans
    
0.40
%
    
0.40
%
    
0.41
%
Nonperforming assets to total assets
    
0.34
      
0.35
      
0.31
  
Allowance for credit losses on loans to total loans
    
0.96
      
0.97
      
1.00
  
Coverage ratio (3)
    
2.4x

   
2.4x

   
2.4x


(1)
Non-GAAP measure; calculated as noninterest expense (excluding ORE income/expense) divided by taxable equivalent net interest income plus noninterest income. See Non-GAAP Financial Measures Reconciliation.
(2)
Non-GAAP measure; calculated as total shareholders' equity less $553 of intangible assets divided by total assets less  $553 of intangible assets.  See Non-GAAP Financial Measures Reconciliation.
(3)
Calculated as allowance for credit losses on loans divided by total nonperforming loans.

Page | 6
FINANCIAL HIGHLIGHTS, Continued

(dollars in thousands, except per share data)
(Unaudited)

   
Six months ended
  
   
06/30/23
    
06/30/22
  
Summary of operations
            
Net interest income
  
$
91,017
      
83,156
  
(Credit) Provision for credit losses
    
(200
)
    
(691
)
Noninterest income
    
9,267
      
10,099
  
Noninterest expense
    
55,006
      
47,770
  
Net income
    
34,118
      
34,960
  
                 
Per share
                
Net income per share:
                
- Basic
  
$
1.79
      
1.82
  
- Diluted
    
1.79
      
1.82
  
Cash dividends
    
0.72
      
0.70
  
Book value at period end
    
32.66
      
31.06
  
Market price at period end
    
28.61
      
30.84
  
                 
Performance ratios
                
Return on average assets
    
1.14
%
    
1.13
  
Return on average equity
    
11.22
      
11.84
  
Efficiency ratio (1)
    
54.48
      
51.28
  
Net interest spread
    
2.90
      
2.72
  
Net interest margin
    
3.10
      
2.74
  
Dividend payout ratio
    
40.15
      
38.39
  

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

Page | 7
CONSOLIDATED STATEMENTS OF INCOME

(dollars in thousands, except per share data)
(Unaudited)

 
  
Three months ended
  
 
  
6/30/2023
    
3/31/2023
    
12/31/2022
    
9/30/2022
    
6/30/2022
  
Interest and dividend income:
                              
Interest and fees on loans
  
$
46,062
    
$
44,272
    
$
42,711
    
$
40,896
    
$
39,604
  
Interest and dividends on securities available for sale:
                                        
U. S. government sponsored enterprises
    
691
      
692
      
693
      
479
      
147
  
State and political subdivisions
    
1
      
-
      
-
      
1
      
-
  
Mortgage-backed securities and collateralized mortgage obligations - residential
    
1,543
      
1,585
      
1,606
      
1,617
      
1,367
  
Corporate bonds
    
516
      
521
      
523
      
526
      
522
  
Small Business Administration - guaranteed participation securities
    
111
      
117
      
124
      
133
      
140
  
Other securities
    
3
      
2
      
2
      
3
      
2
  
Total interest and dividends on securities available for sale
    
2,865
      
2,917
      
2,948
      
2,759
      
2,178
  
 
                                        
Interest on held to maturity securities:
                                        

                                       
Mortgage-backed securities and collateralized mortgage obligations - residential
    
75
      
78
      
81
      
85
      
87
  
Total interest on held to maturity securities
    
75
      
78
      
81
      
85
      
87
  
 
                                        
Federal Home Loan Bank stock
    
110
      
110
      
98
      
80
      
65
  
 
                                        
Interest on federal funds sold and other short-term investments
    
6,970
      
6,555
      
6,246
      
5,221
      
2,253
  
Total interest income
    
56,082
      
53,932
      
52,084
      
49,041
      
44,187
  
 
                                        
Interest expense:
                                        
Interest on deposits:
                                        
Interest-bearing checking
    
49
      
66
      
61
      
43
      
42
  
Savings
    
655
      
530
      
401
      
200
      
163
  
Money market deposit accounts
    
1,756
      
814
      
389
      
237
      
210
  
Time deposits
    
9,291
      
5,272
      
1,839
      
646
      
536
  
Interest on short-term borrowings
    
279
      
285
      
208
      
122
      
176
  
Total interest expense
    
12,030
      
6,967
      
2,898
      
1,248
      
1,127
  
 
                                        
Net interest income
    
44,052
      
46,965
      
49,186
      
47,793
      
43,060
  
 
                                        
Less: (Credit) Provision for credit losses
    
(500
)
    
300
      
50
      
300
      
(491
)
Net interest income after (credit) provision for loan losses
    
44,552
      
46,665
      
49,136
      
47,493
      
43,551
  
 
                                        
Noninterest income:
                                        
Trustco Financial Services income
    
1,412
      
1,774
      
1,773
      
1,435
      
1,996
  
Fees for services to customers
    
2,847
      
2,648
      
2,783
      
2,705
      
2,658
  
Other
    
339
      
247
      
219
      
246
      
262
  
Total noninterest income
    
4,598
      
4,669
      
4,775
      
4,386
      
4,916
  
 
                                        
Noninterest expenses:
                                        
Salaries and employee benefits
    
13,122
      
13,283
      
13,067
      
12,134
      
11,464
  
Net occupancy expense
    
4,262
      
4,598
      
4,261
      
4,483
      
4,254
  
Equipment expense
    
1,873
      
1,962
      
1,700
      
1,532
      
1,667
  
Professional services
    
1,360
      
1,607
      
1,251
      
1,375
      
1,484
  
Outsourced services
    
2,491
      
2,296
      
2,102
      
2,328
      
2,500
  
Advertising expense
    
518
      
390
      
532
      
508
      
389
  
FDIC and other insurance
    
1,085
      
1,052
      
770
      
773
      
804
  
Other real estate expense, net
    
148
      
225
      
101
      
124
      
74
  
Other
    
2,468
      
2,266
      
2,621
      
2,887
      
2,369
  
Total noninterest expenses
    
27,327
      
27,679
      
26,405
      
26,144
      
25,005
  
 
                                        
Income before taxes
    
21,823
      
23,655
      
27,506
      
25,735
      
23,462
  
Income taxes
    
5,451
      
5,909
      
6,596
      
6,371
      
5,591
  
 
                                        
Net income
  
$
16,372
    
$
17,746
    
$
20,910
    
$
19,364
    
$
17,871
  
 
                                        
Net income per common share:
                                        
- Basic
  
$
0.86
    
$
0.93
    
$
1.10
    
$
1.01
    
$
0.93
  
 
                                        
- Diluted
    
0.86
      
0.93
      
1.10
      
1.01
      
0.93
  
 
                                        
Average basic shares (in thousands)
    
19,024
      
19,024
      
19,045
      
19,111
      
19,153
  
Average diluted shares (in thousands)
    
19,024
      
19,028
      
19,050
      
19,112
      
19,153
  

Page | 8
CONSOLIDATED STATEMENTS OF INCOME, Continued

(dollars in thousands, except per share data)
(Unaudited)

   
Six months ended
  
 
  
06/30/23
    
06/30/22
  
Interest and dividend income:
            
Interest and fees on loans
  
$
90,334
      
78,607
  
Interest and dividends on securities available for sale:
                
U. S. government sponsored enterprises
    
1,383
      
233
  
State and political subdivisions
    
1
      
1
  
Mortgage-backed securities and collateralized mortgage obligations - residential
    
3,128
      
2,454
  
Corporate bonds
    
1,037
      
755
  
Small Business Administration - guaranteed participation securities
    
228
      
294
  
Other securities
    
5
      
4
  
Total interest and dividends on securities available for sale
    
5,782
      
3,741
  
 
                
Interest on held to maturity securities:
                
Mortgage-backed securities-residential
    
153
      
177
  
Total interest on held to maturity securities
    
153
      
177
  
 
                
Federal Home Loan Bank stock
    
220
      
127
  
 
                
Interest on federal funds sold and other short-term investments
    
13,525
      
2,825
  
Total interest income
    
110,014
      
85,477
  
 
                
Interest expense:
                
Interest on deposits:
                
Interest-bearing checking
    
115
      
86
  
Savings
    
1,185
      
319
  
Money market deposit accounts
    
2,570
      
424
  
Time deposits
    
14,563
      
1,082
  
Interest on short-term borrowings
    
564
      
410
  
Total interest expense
    
18,997
      
2,321
  
 
                
Net interest income
    
91,017
      
83,156
  
 
                
Less: (Credit) Provision for credit losses
    
(200
)
    
(691
)
Net interest income after provision for loan losses
    
91,217
      
83,847
  
 
                
Noninterest income:
                
Trustco Financial Services income
    
3,186
      
3,829
  
Fees for services to customers
    
5,495
      
5,459
  
Other
    
586
      
811
  
Total noninterest income
    
9,267
      
10,099
  
 
                
Noninterest expenses:
                
Salaries and employee benefits
    
26,405
      
20,703
  
Net occupancy expense
    
8,860
      
8,783
  
Equipment expense
    
3,835
      
3,255
  
Professional services
    
2,967
      
2,951
  
Outsourced services
    
4,787
      
4,780
  
Advertising expense
    
908
      
1,006
  
FDIC and other insurance
    
2,137
      
1,616
  
Other real estate expense, net
    
373
      
85
  
Other
    
4,734
      
4,591
  
Total noninterest expenses
    
55,006
      
47,770
  
 
                
Income before taxes
    
45,478
      
46,176
  
Income taxes
    
11,360
      
11,216
  
 
                
Net income
  
$
34,118
      
34,960
  
 
                
Net income per common share:
                
- Basic
  
$
1.79
      
1.82
  
 
                
- Diluted
    
1.79
      
1.82
  
 
                
Average basic shares (in thousands)
    
19,024
      
19,184
  
Average diluted shares (in thousands)
    
19,025
      
19,185
  

Page | 9
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

(dollars in thousands)
(Unaudited)

   
6/30/2023
    
3/31/2023
    
12/31/2022
    
9/30/2022
    
6/30/2022
  
ASSETS:
                              
 
                              
Cash and due from banks
  
$
55,662
    
$
47,595
    
$
43,429
    
$
46,236
    
$
46,611
  
Federal funds sold and other short term investments
    
547,695
      
589,389
      
607,170
      
795,028
      
999,573
  
Total cash and cash equivalents
    
603,357
      
636,984
      
650,599
      
841,264
      
1,046,184
  
 
                                        
Securities available for sale:
                                        
U. S. government sponsored enterprises
    
113,570
      
119,132
      
118,187
      
102,779
      
101,100
  
States and political subdivisions
    
34
      
34
      
34
      
41
      
41
  
Mortgage-backed securities and collateralized mortgage obligations - residential
    
243,444
      
255,556
      
260,316
      
261,242
      
287,450
  
Small Business Administration - guaranteed participation securities
    
18,382
      
19,821
      
20,977
      
22,498
      
25,428
  
Corporate bonds
    
76,618
      
81,464
      
81,346
      
81,002
      
87,740
  
Other securities
    
656
      
652
      
653
      
657
      
656
  
Total securities available for sale
    
452,704
      
476,659
      
481,513
      
468,219
      
502,415
  
 
                                        
Held to maturity securities:
                                        
Mortgage-backed securities and collateralized mortgage obligations-residential
    
7,043
      
7,382
      
7,707
      
8,091
      
8,544
  
Total held to maturity securities
    
7,043
      
7,382
      
7,707
      
8,091
      
8,544
  
 
                                        
Federal Reserve Bank and Federal Home Loan Bank stock
    
6,203
      
5,797
      
5,797
      
5,797
      
5,797
  
 
                                        
Loans:
                                        
Commercial
    
251,434
      
246,307
      
231,011
      
217,120
      
199,886
  
Residential mortgage loans
    
4,310,005
      
4,241,459
      
4,203,451
      
4,132,365
      
4,076,657
  
Home equity line of credit
    
308,976
      
296,490
      
286,432
      
269,341
      
253,758
  
Installment loans
    
16,396
      
15,326
      
12,307
      
10,665
      
10,258
  
Loans, net of deferred net costs
    
4,886,811
      
4,799,582
      
4,733,201
      
4,629,491
      
4,540,559
  
 
                                        
Less: Allowance for credit losses on loans
    
46,914
      
46,685
      
46,032
      
45,517
      
45,285
  
Net loans
    
4,839,897
      
4,752,897
      
4,687,169
      
4,583,974
      
4,495,274
  
 
                                        
Bank premises and equipment, net
    
32,351
      
32,305
      
32,556
      
31,931
      
32,381
  
Operating lease right-of-use assets
    
43,113
      
43,478
      
44,727
      
45,733
      
47,343
  
Other assets
    
90,957
      
90,306
      
89,984
      
94,485
      
88,853
  
 
                                        
Total assets
  
$
6,075,625
    
$
6,045,808
    
$
6,000,052
    
$
6,079,494
    
$
6,226,791
  
 
                                        
LIABILITIES:
                                        
Deposits:
                                        
Demand
  
$
791,353
    
$
806,075
    
$
838,147
    
$
859,829
    
$
851,573
  
Interest-bearing checking
    
1,082,989
      
1,124,785
      
1,183,321
      
1,188,790
      
1,208,159
  
Savings accounts
    
1,315,893
      
1,400,887
      
1,521,473
      
1,562,564
      
1,577,034
  
Money market deposit accounts
    
625,253
      
600,410
      
621,106
      
716,319
      
760,338
  
Time deposits
    
1,442,959
      
1,280,301
      
1,028,763
      
954,352
      
999,737
  
Total deposits
    
5,258,447
      
5,212,458
      
5,192,810
      
5,281,854
      
5,396,841
  
 
                                        
Short-term borrowings
    
113,765
      
134,293
      
122,700
      
124,932
      
147,282
  
Operating lease liabilities
    
47,172
      
47,643
      
48,980
      
50,077
      
51,777
  
Accrued expenses and other liabilities
    
34,852
      
36,711
      
35,575
      
33,625
      
36,259
  
 
                                        
Total liabilities
    
5,454,236
      
5,431,105
      
5,400,065
      
5,490,488
      
5,632,159
  
 
                                        
SHAREHOLDERS' EQUITY:
                                        
Capital stock
    
20,058
      
20,058
      
20,058
      
20,046
      
20,046
  
Surplus
    
257,078
      
257,078
      
257,078
      
256,661
      
256,661
  
Undivided profits
    
414,251
      
404,728
      
393,831
      
379,769
      
367,100
  
Accumulated other comprehensive loss, net of tax
    
(26,212
)
    
(23,375
)
    
(27,194
)
    
(25,209
)
    
(9,422
)
Treasury stock at cost
    
(43,786
)
    
(43,786
)
    
(43,786
)
    
(42,261
)
    
(39,753
)
 
                                        
Total shareholders' equity
    
621,389
      
614,703
      
599,987
      
589,006
      
594,632
  
 
                                        
Total liabilities and shareholders' equity
  
$
6,075,625
    
$
6,045,808
    
$
6,000,052
    
$
6,079,494
    
$
6,226,791
  
 
                                        
Outstanding shares (in thousands)
    
19,024
      
19,024
      
19,024
      
19,052
      
19,127
  

Page | 10
NONPERFORMING ASSETS

(dollars in thousands)
(Unaudited)

   
6/30/2023
    
3/31/2023
    
12/31/2022
    
9/30/2022
    
6/30/2022
  
Nonperforming Assets
                              
 
                              
New York and other states*
                              
Loans in nonaccrual status:
                              
Commercial
  
$
545
    
$
560
    
$
219
    
$
179
    
$
203
  
Real estate mortgage - 1 to 4 family
    
16,260
      
15,722
      
14,949
      
16,295
      
16,259
  
Installment
    
124
      
59
      
23
      
29
      
40
  
Total non-accrual loans
    
16,929
      
16,341
      
15,191
      
16,503
      
16,502
  
Other nonperforming real estate mortgages - 1 to 4 family
    
7
      
8
      
10
      
12
      
14
  
Total nonperforming loans
    
16,936
      
16,349
      
15,201
      
16,515
      
16,516
  
Other real estate owned
    
1,412
      
1,869
      
2,061
      
682
      
644
  
Total nonperforming assets
  
$
18,348
    
$
18,218
    
$
17,262
    
$
17,197
    
$
17,160
  
 
                                        
Florida
                                        
Loans in nonaccrual status:
                                        
Commercial
  
$
314
    
$
314
    
$
314
    
$
-
    
$
-
  
Real estate mortgage - 1 to 4 family
    
2,170
      
2,437
      
1,895
      
2,104
      
2,192
  
Installment
    
-
      
62
      
83
      
65
      
5
  
Total non-accrual loans
    
2,484
      
2,813
      
2,292
      
2,169
      
2,197
  
Other nonperforming real estate mortgages - 1 to 4 family
    
-
      
-
      
-
      
-
      
-
  
Total nonperforming loans
    
2,484
      
2,813
      
2,292
      
2,169
      
2,197
  
Other real estate owned
    
-
      
-
      
-
      
-
      
-
  
Total nonperforming assets
  
$
2,484
    
$
2,813
    
$
2,292
    
$
2,169
    
$
2,197
  
 
                                        
Total
                                        
Loans in nonaccrual status:
                                        
Commercial
  
$
859
    
$
874
    
$
533
    
$
179
    
$
203
  
Real estate mortgage - 1 to 4 family
    
18,430
      
18,159
      
16,844
      
18,399
      
18,451
  
Installment
    
124
      
121
      
106
      
94
      
45
  
Total non-accrual loans
    
19,413
      
19,154
      
17,483
      
18,672
      
18,699
  
Other nonperforming real estate mortgages - 1 to 4 family
    
7
      
8
      
10
      
12
      
14
  
Total nonperforming loans
    
19,420
      
19,162
      
17,493
      
18,684
      
18,713
  
Other real estate owned
    
1,412
      
1,869
      
2,061
      
682
      
644
  
Total nonperforming assets
  
$
20,832
    
$
21,031
    
$
19,554
    
$
19,366
    
$
19,357
  
 
                                        
Quarterly Net (Recoveries) Chargeoffs
                                        
 
                                        
New York and other states*
                                        
Commercial
  
$
(129
)
  
$
-
    
$
-
    
$
-
    
$
-
  
Real estate mortgage - 1 to 4 family
    
(161
)
    
(53
)
    
(46
)
    
(164
)
    
(119
)
Installment
    
21
      
(6
)
    
31
      
34
      
12
  
Total net (recoveries) chargeoffs
  
$
(269
)
  
$
(59
)
  
$
(15
)
  
$
(130
)
  
$
(107
)
 
                                        
Florida
                                        
Commercial
  
$
-
    
$
-
    
$
-
    
$
-
    
$
-
  
Real estate mortgage - 1 to 4 family
    
-
      
(25
)
    
-
      
-
      
-
  
Installment
    
40
      
31
      
-
      
(2
)
    
-
  
Total net (recoveries) chargeoffs
  
$
40
    
$
6
    
$
-
    
$
(2
)
  
$
-
  
 
                                        
Total
                                        
Commercial
  
$
(129
)
  
$
-
    
$
-
    
$
-
    
$
-
  
Real estate mortgage - 1 to 4 family
    
(161
)
    
(78
)
    
(46
)
    
(164
)
    
(119
)
Installment
    
61
      
25
      
31
      
32
      
12
  
Total net (recoveries) chargeoffs
  
$
(229
)
  
$
(53
)
  
$
(15
)
  
$
(132
)
  
$
(107
)
 
                                        
Asset Quality Ratios
                                        
 
                                        
Total nonperforming loans (1)
  
$
19,420
    
$
19,162
    
$
17,493
    
$
18,684
    
$
18,713
  
Total nonperforming assets (1)
    
20,832
      
21,031
      
19,554
      
19,366
      
19,357
  
Total net (recoveries) chargeoffs (2)
    
(229
)
    
(53
)
    
(15
)
    
(132
)
    
(107
)
 
                                        
Allowance for credit losses on loans (1)
    
46,914
      
46,685
      
46,032
      
45,517
      
45,285
  
 
                                        
Nonperforming loans to total loans
    
0.40
%
    
0.40
%
    
0.37
%
    
0.40
%
    
0.41
%
Nonperforming assets to total assets
    
0.34
%
    
0.35
%
    
0.33
%
    
0.32
%
    
0.31
%
Allowance for credit losses on loans to total loans
    
0.96
%
    
0.97
%
    
0.97
%
    
0.98
%
    
1.00
%
Coverage ratio (1)
    
241.6
%
    
243.6
%
    
263.1
%
    
243.6
%
    
242.0
%
Annualized net (recoveries) chargeoffs to average loans (2)
    
-0.02
%
    
0.00
%
    
0.00
%
    
-0.01
%
    
-0.01
%
Allowance for credit losses on loans to annualized net (recoveries) chargeoffs (2)
    
N/A
      
N/A
      
N/A
      
N/A
      
N/A
  

* Includes New York, New Jersey, Vermont and Massachusetts.
(1)  At period-end
(2)  For the three-month period ended

Page | 11
DISTRIBUTION OF ASSETS, LIABILITIES AND SHAREHOLDERS' EQUITY -
INTEREST RATES AND INTEREST DIFFERENTIAL

(dollars in thousands)
      
(Unaudited)
  
Three months ended
    
Three months ended
  
 
  
June 30, 2023
    
June 30, 2022
  
 
  
Average
    
Interest
    
Average
    
Average
    
Interest
    
Average
  
 
  
Balance
          
Rate
    
Balance
          
Rate
  
Assets
                                    
 
                                    
Securities available for sale:
                                    
U. S. government sponsored enterprises
  
$
120,646
    
$
691
      
2.29
%
  
$
71,409
    
$
147
      
0.83
%
Mortgage backed securities and collateralized mortgage obligations - residential
    
278,367
      
1,543
      
2.20
      
282,800
      
1,367
      
1.92
  
State and political subdivisions
    
34
      
1
      
6.74
      
41
      
0
      
-
  
Corporate bonds
    
85,344
      
516
      
2.42
      
87,556
      
522
      
2.38
  
Small Business Administration - guaranteed participation securities
    
20,724
      
111
      
2.15
      
27,512
      
140
      
2.04
  
Other
    
686
      
3
      
1.75
      
686
      
2
      
1.17
  
 
                                                
Total securities available for sale
    
505,801
      
2,865
      
2.27
      
470,004
      
2,178
      
1.85
  
 
                                                
Federal funds sold and other short-term Investments
    
551,087
      
6,970
      
5.07
      
1,101,489
      
2,253
      
0.82
  
 
                                                
Held to maturity securities:
                                                
Mortgage backed securities and collateralized mortgage obligations - residential
    
7,204
      
75
      
4.17
      
8,859
      
87
      
3.93
  
 
                                                
Total held to maturity securities
    
7,204
      
75
      
4.17
      
8,859
      
87
      
3.93
  
 
                                                
Federal Home Loan Bank stock
    
5,868
      
110
      
7.50
      
5,797
      
65
      
4.49
  
 
                                                
Commercial loans
    
249,040
      
3,295
      
5.29
      
198,972
      
2,402
      
4.83
  
Residential mortgage loans
    
4,269,295
      
37,992
      
3.56
      
4,049,271
      
34,771
      
3.43
  
Home equity lines of credit
    
303,134
      
4,533
      
6.00
      
243,648
      
2,269
      
3.74
  
Installment loans
    
15,734
      
242
      
6.16
      
9,321
      
162
      
6.98
  
 
                                                
Loans, net of unearned income
    
4,837,203
      
46,062
      
3.81
      
4,501,212
      
39,604
      
3.52
  
 
                                                
Total interest earning assets
    
5,907,163
    
$
56,082
      
3.80
      
6,087,361
    
$
44,187
      
2.90
  
 
                                                
Allowance for credit losses on loans
    
(47,060
)
                    
(46,411
)
                
Cash & non-interest earning assets
    
172,821
                      
193,099
                  
 
                                                
Total assets
  
$
6,032,924
                    
$
6,234,049
                  
 
                                                
Liabilities and shareholders' equity
                                                
 
                                                
Deposits:
                                                
Interest bearing checking accounts
  
$
1,083,795
    
$
49
      
0.02
%
  
$
1,210,554
    
$
42
      
0.01
%
Money market accounts
    
613,204
      
1,756
      
1.15
      
777,860
      
210
      
0.11
  
Savings
    
1,352,181
      
655
      
0.19
      
1,564,454
      
163
      
0.04
  
Time deposits
    
1,372,248
      
9,291
      
2.72
      
968,560
      
536
      
0.22
  
 
                                                
Total interest bearing deposits
    
4,421,428
      
11,751
      
1.07
      
4,521,428
      
951
      
0.08
  
Short-term borrowings
    
124,089
      
279
      
0.90
      
197,259
      
176
      
0.36
  
 
                                                
Total interest bearing liabilities
    
4,545,517
    
$
12,030
      
1.06
      
4,718,687
    
$
1,127
      
0.10
  
 
                                                
Demand deposits
    
788,654
                      
842,487
                  
Other liabilities
    
79,839
                      
79,431
                  
Shareholders' equity
    
618,914
                      
593,444
                  
 
                                                
Total liabilities and shareholders' equity
  
$
6,032,924
                    
$
6,234,049
                  
 
                                                
Net interest income, GAAP and non-GAAP tax equivalent (1)
          
$
44,052
                    
$
43,060
          
 
                                                
Net interest spread, GAAP and non-GAAP tax equivalent (1)
                    
2.74
%
                    
2.80
%
 
                                                
Net interest margin (net interest income to total interest earning assets), GAAP and non-GAAP tax equivalent (1)
                    
2.98
%
                    
2.83
%
 
                                                
Tax equivalent adjustment (1)
            
-
                      
-
          
 
                                                
Net interest income
          
$
44,052
                    
$
43,060
          

(1) Tax equivalent adjustment to a measure results in a non-GAAP financial measure.  See Non-GAAP Financial Measures Reconciliation.

Page | 12
DISTRIBUTION OF ASSETS, LIABILITIES AND SHAREHOLDERS' EQUITY -
INTEREST RATES AND INTEREST DIFFERENTIAL, Continued

(dollars in thousands)
      
(Unaudited)
  
Six months ended
    
Six months ended
  
 
  
June 30, 2023
    
June 30, 2022
  
 
  
Average
    
Interest
    
Average
    
Average
    
Interest
    
Average
  
 
  
Balance
          
Rate
    
Balance
          
Rate
  
Assets
                                    
 
                                    
Securities available for sale:
                                    
U. S. government sponsored enterprises
  
$
120,669
      
1,383
      
2.29
%
  
$
66,609
      
233
      
0.70
%
Mortgage backed securities and collateralized mortgage obligations - residential
    
282,683
      
3,128
      
2.21
      
272,022
      
2,454
      
1.80
  
State and political subdivisions
    
34
      
1
      
6.74
      
41
      
1
      
6.73
  
Corporate bonds
    
85,460
      
1,037
      
2.43
      
70,362
      
755
      
2.15
  
Small Business Administration - guaranteed participation securities
    
21,423
      
228
      
2.13
      
28,685
      
294
      
2.05
  
Other
    
686
      
5
      
0.73
      
686
      
4
      
1.17
  
 
                                                
Total securities available for sale
    
510,955
      
5,782
      
1.13
      
438,405
      
3,741
      
1.71
  
 
                                                
Federal funds sold and other short-term Investments
    
563,938
      
13,525
      
4.84
      
1,144,108
      
2,825
      
0.50
  
 
                                                
Held to maturity securities:
                                                
Mortgage backed securities and collateralized mortgage obligations - residential
    
7,372
      
153
      
4.16
      
9,198
      
177
      
3.86
  
 
                                                
Total held to maturity securities
    
7,372
      
153
      
4.16
      
9,198
      
177
      
3.86
  
 
                                                
Federal Home Loan Bank stock
    
5,833
      
220
      
3.77
      
5,701
      
127
      
4.46
  
 
                                                
Commercial loans
    
243,983
      
6,319
      
5.18
      
196,991
      
4,928
      
5.00
  
Residential mortgage loans
    
4,241,207
      
74,906
      
3.54
      
4,028,667
      
68,968
      
3.43
  
Home equity lines of credit
    
297,262
      
8,652
      
5.87
      
238,122
      
4,393
      
3.72
  
Installment loans
    
14,535
      
457
      
6.35
      
9,148
      
318
      
7.00
  
 
                                                
Loans, net of unearned income
    
4,796,987
      
90,334
      
3.77
      
4,472,928
      
78,607
      
3.52
  
 
                                                
Total interest earning assets
    
5,885,085
      
110,014
      
3.75
      
6,070,340
      
85,477
      
2.82
  
 
                                                
Allowance for credit losses on loans
    
(46,677
)
                    
(46,584
)
                
Cash & non-interest earning assets
    
173,990
                      
200,193
                  
 
                                                
Total assets
  
$
6,012,398
                    
$
6,223,949
                  
 
                                                
Liabilities and shareholders' equity
                                                
 
                                                
Deposits:
                                                
Interest bearing checking accounts
  
$
1,108,452
      
115
      
0.02
%
  
$
1,201,078
      
86
      
0.01
%
Money market accounts
    
607,064
      
2,570
      
0.85
      
784,737
      
424
      
0.11
  
Savings
    
1,403,924
      
1,185
      
0.17
      
1,546,316
      
319
      
0.04
  
Time deposits
    
1,267,193
      
14,563
      
2.32
      
966,372
      
1,082
      
0.23
  
 
                                                
Total interest bearing deposits
    
4,386,633
      
18,433
      
0.85
      
4,498,503
      
1,911
      
0.09
  
Short-term borrowings
    
127,957
      
564
      
0.89
      
222,755
      
410
      
0.37
  
 
                                                
Total interest bearing liabilities
    
4,514,590
      
18,997
      
0.85
      
4,721,258
      
2,321
      
0.10
  
 
                                                
Demand deposits
    
802,533
                      
825,685
                  
Other liabilities
    
81,954
                      
81,520
                  
Shareholders' equity
    
613,321
                      
595,486
                  
 
                                                
Total liabilities and shareholders' equity
  
$
6,012,398
                    
$
6,223,949
                  
 
                                                
Net interest income, GAAP and non-GAAP tax equivalent (1)
            
91,017
                      
83,156
          
 
                                                
Net interest spread, GAAP and non-GAAP tax equivalent (1)
                    
2.90
%
                    
2.72
%
 
                                                
Net interest margin (net interest income to total interest earning assets), GAAP and non-GAAP tax equivalent (1)
                    
3.10
%
                    
2.74
%
 
                                                
Tax equivalent adjustment (1)
            
-
                      
-
          
 
                                                
Net interest income
            
91,017
                      
83,156
          

(1) Tax equivalent adjustment to a measure results in a non-GAAP financial measure.  See Non-GAAP Financial Measures Reconciliation.

Page | 13
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 total 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.  Additionally, we believe that this measure is important to many investors in the marketplace who are interested in relative changes from period to period in equity and total assets, each exclusive of changes in intangible assets.

Net interest income is commonly presented on a taxable equivalent basis. That is, to the extent that some component of the institution’s net interest income will be exempt from taxation (e.g., was received by the institution as a result of its holdings of state or municipal obligations), an amount equal to the tax benefit derived from that component is added back to the net interest income total. Management considers this adjustment helpful to investors in comparing one financial institution’s net interest income (pre- tax) to that of another institution, as each will have a different proportion of tax-exempt items in their portfolios. Moreover, net interest income is itself a component of another financial measure commonly used by financial institutions, net interest margin, which is the ratio of net interest income to average interest earning assets.  Additionally, management and many financial institutions also present net interest spread, which is the average yield on interest earning assets minus the average rate paid on interest bearing liabilities. For purposes of these measures as well, taxable equivalent net interest income is generally used by financial institutions, again to provide investors with a better basis of comparison from institution to institution. We calculate taxable equivalent net interest margin by dividing net interest income, adjusted to include the benefit of non-taxable interest income, by average interest earning assets.  We calculate taxable equivalent net interest spread as the difference between average yield on interest earning assets, adjusted to include the benefit of non-taxable interest income, and the average rate paid on interest bearing liabilities.

The efficiency ratio is a non-GAAP measure of expense control relative to revenue from net interest income and non-interest fee 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 non-routine items from this calculation.  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 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 equity as a percentage of tangible assets, and efficiency ratio to the most directly comparable GAAP measures is set forth below.  We have not presented a reconciliation of taxable equivalent net interest income, taxable equivalent net interest margin or taxable equivalent net interest spread to the most directly comparable GAAP measure, as there was no difference between the taxable equivalent measure and comparable GAAP measure for any period presented in this release.

Page | 14
NON-GAAP FINANCIAL MEASURES RECONCILIATION

(dollars in thousands)
(Unaudited)

 
  
6/30/2023
    
3/31/2023
    
6/30/2022
                  
Tangible Book Value Per Share
                                  
 
                                  
Equity (GAAP)
  
$
621,389
    
$
614,703
    
$
594,632
                  
Less: Intangible assets
    
553
      
553
      
553
                  
Tangible equity (Non-GAAP)
  
$
620,836
    
$
614,150
    
$
594,079
                  
 
                                        
Shares outstanding
    
19,024
      
19,024
      
19,127
                  
Tangible book value per share
    
32.63
      
32.28
      
31.06
                  
Book value per share
    
32.66
      
32.31
      
31.06
                  
 
                                        
Tangible Equity to Tangible Assets
                                        
Total Assets (GAAP)
  
$
6,075,625
    
$
6,045,808
    
$
6,226,791
                  
Less: Intangible assets
    
553
      
553
      
553
                  
Tangible assets (Non-GAAP)
  
$
6,075,072
    
$
6,045,255
    
$
6,226,238
                  
 
                                        
Tangible Equity to Tangible Assets (Non-GAAP)
    
10.22
%
    
10.16
%
    
9.54
%
                
Equity to Assets (GAAP)
    
10.23
%
    
10.17
%
    
9.55
%
                

   
Three months ended
    
Six months ended
  
Efficiency Ratio
  
6/30/2023
    
3/31/2023
    
6/30/2022
    
6/30/2023
    
6/30/2022
  
                               
Net interest income (GAAP)
  
$
44,052
    
$
46,965
    
$
43,060
    
$
91,017
    
$
83,156
  
Taxable equivalent adjustment
    
-
      
-
      
-
      
-
      
-
  
Net interest income (fully taxable equivalent) (Non-GAAP)
    
44,052
      
46,965
      
43,060
      
91,017
      
83,156
  
Non-interest income (GAAP)
    
4,598
      
4,669
      
4,916
      
9,267
      
10,099
  
Less:  Net gain on sale of building
    
-
      
-
      
-
      
-
      
268
  
Revenue used for efficiency ratio (Non-GAAP)
  
$
48,650
    
$
51,634
    
$
47,976
    
$
100,284
    
$
92,987
  
                                         
Total noninterest expense (GAAP)
  
$
27,327
    
$
27,679
    
$
25,005
    
$
55,006
    
$
47,770
  
Less:  Other real estate expense, net
    
148
      
225
      
74
      
373
      
85
  
Expense used for efficiency ratio (Non-GAAP)
  
$
27,179
    
$
27,454
    
$
24,931
    
$
54,633
    
$
47,685
  
                                         
Efficiency Ratio
    
55.87
%
    
53.17
%
    
51.97
%
    
54.48
%
    
51.28
%


Page | 15