Regulatory Capital Requirements

12 Months Ended

Dec. 31, 2024

Regulatory Capital Requirements [Abstract]

(14)	Regulatory Capital Requirements

Depository institutions and their holding companies are subject to regulatory capital requirements administered by federal banking agencies. Capital adequacy rules and regulations involve quantitative measures of assets, liabilities, and certain off-balance-sheet items calculated under regulatory accounting practices. Capital amounts and classifications are also subject to qualitative judgments by regulators. Failure to meet capital requirements can result in regulatory action. The capital rules include a capital conservation buffer of 2.5% that is designed to absorb losses during periods of economic stress and to require increased capital levels before capital distributions and certain other payments can be made. Failure to meet the full amount of the buffer will result in restrictions on capital distributions, including dividend payments and stock repurchases, and to pay discretionary bonuses to executive officers. For regulatory capital purposes, the ratios exclude the impact of accumulated other comprehensive income (loss). As of December 31, 2023, the Company and Bank meet all capital adequacy requirements to which they are subject and reported capital in levels that exceeded the capital conservation buffer.

Prompt corrective action regulations, to which banks, but not their holding companies, are subject, provide five classifications: well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized, and critically undercapitalized. If a bank is not classified as well capitalized, its ability to accept brokered deposits is restricted. If a bank is undercapitalized, capital distributions are limited, as is asset growth and expansion, and capital restoration plans are required. The federal banking agencies are required to take certain supervisory actions (and may take additional discretionary actions) with respect to an undercapitalized institution or its holding company. Such actions could have a direct material effect on an institution’s or its holding company’s financial statements. As of December 31, 2024 and December 31, 2023, the most recent regulatory notifications categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. There are no conditions or events since that notification that management believes have changed the Bank’s category.

The following is a summary of actual capital amounts and ratios as of December 31, 2024 and 2023, for Trustco Bank:

	As of December 31, 2024						Well			Minimum for Capital Adequacy plus Capital Conservation
(dollars in thousands)	Amount			Ratio			Capitalized⁽¹⁾			Buffer⁽¹⁾⁽²⁾

Tier 1 leverage ratio		$	652,668		10.618	%		5.000	%		4.000	%
Common equity Tier 1 capital			652,668		18.542			6.500			7.000
Tier 1 risk-based capital			652,668		18.542			8.000			8.500
Total risk-based capital			696,767		19.795			10.000			10.500

	As of December 31, 2023						Well			Minimum for Capital Adequacy plus Capital Conservation
(dollars in thousands)	Amount			Ratio			Capitalized⁽¹⁾			Buffer⁽¹⁾⁽²⁾

Tier 1 leverage ratio		$	636,327		10.428	%		5.000	%		4.000	%
Common equity Tier 1 capital			636,327		18.280			6.500			7.000
Tier 1 risk-based capital			636,327		18.280			8.000			8.500
Total risk-based capital			679,924		19.532			10.000			10.500

The following is a summary of actual capital amounts and ratios as of December 31, 2024 and 2023 for TrustCo on a consolidated basis.

	As of December 31, 2024						Minimum for Capital Adequacy plus Capital Conservation
(dollars in thousands)	Amount			Ratio			Buffer⁽¹⁾⁽²⁾

Tier 1 leverage ratio		$	679,651		11.054	%		4.000	%
Common equity Tier 1 capital			679,651		19.303			7.000
Tier 1 risk-based capital			679,651		19.303			8.500
Total risk-based capital			723,762		20.556			10.500

	As of December 31, 2023						Minimum for Capital Adequacy plus Capital Conservation
(dollars in thousands)	Amount			Ratio			Buffer⁽¹⁾⁽²⁾

Tier 1 leverage ratio		$	657,968		10.780	%		4.000	%
Common equity Tier 1 capital			657,968		18.896			7.000
Tier 1 risk-based capital			657,968		18.896			8.500
Total risk-based capital			701,577		20.149			10.500

(1)	Federal regulatory minimum requirements to be considered to be Well Capitalized and Adequately Capitalized.

(2)	The December 31, 2024 and 2023 common equity tier 1, tier 1 risk-based, and total risk-based capital ratios include a capital conservation buffer of 2.50 percent.

- Definition

The entire disclosure for regulatory capital requirement for depository and lending institutions. Institutions include, but not are not limited to, finance company, insured depository institution, bank holding company, savings and loan association holding company, bank and savings institution not federally insured, mortgage company, foreign financial institution and credit union.

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