EX-99 2 ef20052260_ex99-a.htm EXHIBIT 99(A)
Exhibit 99.1(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:

Skillful Application of Fundamental Principles Yields Standout Results:
TrustCo Announces Net Income Up 19.8%; Net Interest Income up 10.5%

Executive Snapshot:


 •
Bank-wide financial results:

o
Key metrics for the second quarter 2025:

◾
Net income of $15.0 million, or $0.79 diluted earnings per share, increased 19.8% compared to $12.6 million, or $0.66 diluted earnings per share for the second quarter 2024

◾
Net interest income of $41.7 million, up 10.5% from $37.8 million for the second quarter 2024

◾
Net interest margin of 2.71%, up 18 basis points from 2.53% in second quarter of 2024

◾
Average loans were up $115.6 million for the second quarter 2025 compared to the second quarter 2024

◾
Average deposits were up $173.4 million for the second quarter 2025 compared to the second quarter 2024


•
Capital position and key ratios:

o
Consolidated equity to assets increased to 10.91% as of June 30, 2025 from 10.73% as of June 30, 2024

o
Book value per share as of June 30, 2025 was $36.75, up from $34.46 as of June 30, 2024

o
169 thousand shares of TrustCo common stock were purchased under the stock repurchase program during the second quarter 2025


•
Trustco Financial Services and Wealth Management income:

o
Fees increased to $1.8 million, or by 13.0%, compared to second quarter 2024

o
Assets under management increased to $1.19 billion, or by 8.2%, compared to second quarter 2024

Glenville, New York – July 21, 2025

TrustCo Bank Corp NY (TrustCo, NASDAQ: TRST) today announced strong financial results for the second quarter of 2025 underscored by rising net interest income, continued margin expansion, and accelerated loan growth across key portfolios.  Net interest income increased 10.5% year over year to $41.7 million, driven by the ongoing repricing of the loan portfolio at higher yields and disciplined management of deposit costs, which remained well-controlled despite sustained competitive pressures.  Net interest margin expanded to 2.71% from 2.53% in the prior year period, reflecting improved asset yields and prudent deposit pricing strategies.  This resulted in second quarter 2025 net income of $15.0 million or $0.79 diluted earnings per share, compared to net income of $12.6 million or $0.66 diluted earnings per share for the second quarter 2024.  Loan growth gained momentum during the quarter, with total average loans increasing $115.6 million or 2.3% for the second quarter 2025 over the same period in 2024.  This growth signals increasing borrower confidence and supports the Bank’s strategic focus on high quality relationship lending.

Page | 1
Overview

Chairman, President, and CEO, Robert J. McCormick said “Part of our long-term strategy is having the right mix of products available so that we can sell the right thing, to the right customer, at the right time.  It is our ability to do this with agility and skill that has produced the standout results announced today.  We saw double digit growth in our return metrics year over year, as return on average assets improved 17%, and return on average equity grew 12.5%.  Our margin improved 7% year over year, in tandem with a 12% year over year improvement in adjusted efficiency ratio.  Our ability to sell home equity products at a time of high market demand for the flexibility they offer has been key to this success.  Home equity credit lines are up 18% year over year.  Likewise, we strategically grew commercial loans 11% year over year – which we have done without exposure to risky multi-family loans or other industry-specific concentrations.  We lowered non-performing loans to total loans by 7% year over year, and booked a second consecutive quarter of net recoveries.  These exceptional results in the first half of 2025 provide a foundation for positive momentum moving into 2026.”
  
Details

As the year continues to progress, we are seeing increased opportunities to deploy our resources effectively.  Some efforts include loan originations, targeted investments in technology and digital banking infrastructure, and strategic growth in key markets.  Average loans were up $115.6 million, or 2.3%, in the second quarter 2025 over the same period in 2024.  Average residential loans and HECLs, our primary lending focus, were up $27.9 million, or 0.6%, and $64.7 million, or 17.8%, respectively, in the second quarter 2025 over the same period in 2024.  Average commercial loans also increased $25.8 million, or 9.2%, in the second quarter 2025 over the same period in 2024.  We believe that this upward trend reflects improving economic confidence among borrowers, strong credit quality, and the Bank’s focus on relationship lending. The sustained growth in the loan portfolio will likely enhance net interest income in the quarters ahead.  Average deposits were up $173.4 million, or 3.3%, for the second quarter 2025 over the same period in 2024, primarily as a result of an increase in time deposits, interest bearing checking accounts, and demand deposits. The Bank’s continued emphasis on relationship banking, combined with competitive product offerings and digital capabilities, has contributed to a stable deposit base that supports ongoing loan growth and expansion.

During the second quarter of 2025, we remained committed to returning value to shareholders through a disciplined share repurchase program, which reflects our confidence in the long-term strength of the franchise and our focus on capital optimization. TrustCo purchased 169 thousand, or 0.9%, of total shares outstanding of TrustCo common stock under the previously announced stock repurchase program during the second quarter of 2025. Our approach ensures every dollar of capital is working to generate solid returns, strengthen customer relationships, and enhance shareholder value.  As of June 30, 2025, our equity to asset ratio was 10.91%, compared to 10.73% as of June 30, 2024.  Book value per share as of June 30, 2025 was $36.75, up 6.6% compared to $34.46 a year earlier.

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Net interest income was $41.7 million for the second quarter 2025, an increase of $4.0 million, or 10.5%, compared to the second quarter of 2024, driven by loan growth at higher interest rates, increase in interest on federal funds sold and other short-term investments, and less interest expense on deposit products, partially offset by lower investment interest income.  The net interest margin for the second quarter 2025 was 2.71%, up 18 basis points from 2.53% in the second quarter of 2024.  The yield on interest earnings assets increased to 4.19% in the second quarter of 2025, up 13 basis points from 4.06% in the second quarter of 2024.  The cost of interest bearing liabilities decreased to 1.91% in the second quarter 2025, down from 1.97% in the second quarter 2024.  The Bank is well positioned to continue delivering strong net interest income performance even as the Federal Reserve signals a potential easing cycle in the months ahead.  Our balance sheet is built for resilience and flexibility, with a favorable asset mix and a stable deposit base that we believe positions us to thrive across interest rate environments.  In addition to new loan originations, we are seeing ongoing opportunities to reprice portions of our existing loan book as higher-rate loans replace paydowns and early payoffs, helping us maintain attractive yields.  With loan demand accelerating and funding costs stabilizing, we believe there is meaningful upside to net interest income in the coming quarters.  Our proactive asset-liability management strategy gives us confidence in sustaining margin strength and driving consistent profitable growth.

Non-interest income, net of net gains on equity securities, increased to $4.9 million as compared to $4.3 million for the second quarter of 2024.  This increase was primarily attributable to wealth management and financial services fees, which increased by 13.0% to $1.8 million, driven by strong client demand and higher assets under management.  These revenues represent 37.5% of non-interest income for the second quarter of 2025.  The majority of this fee income is recurring, supported by long-term advisory relationships and a growing base of managed assets.  Non-interest expense increased $236 thousand over the second quarter of 2024.

Asset quality remains strong and has been consistent over the past twelve months.  The Company recorded a provision for credit losses on loans of $650 thousand in the second quarter of 2025.  The ratio of allowance for credit losses on loans to total loans was 0.99% as of both June 30, 2025 and 2024.  The allowance for credit losses on loans was $51.3 million as of June 30, 2025, compared to $49.8 million as of June 30, 2024.  Nonperforming loans (NPLs) were $17.9 million as of June 30, 2025, compared to $19.2 million as of June 30, 2024.  NPLs were 0.35% and 0.38% of total loans as of June 30, 2025 and 2024, respectively.  The coverage ratio, or allowance for credit losses on loans to NPLs, was 286.2% as of June 30, 2025, compared to 259.4% as of June 30, 2024.  Nonperforming assets (NPAs) were $19.0 million as of June 30, 2025, compared to $21.5 million as of June 30, 2024.
 
A conference call to discuss second quarter 2025 results will be held at 9:00 a.m. Eastern Time on July 22, 2025.  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 258501.  A replay of the call will be available for thirty days by dialing toll-free for the United States at 1-866-813-9403, Access code 410483.  The call will also be audio webcast at  https://events.q4inc.com/attendee/979003710, and will be available for one year.
 
Page | 3
About TrustCo Bank Corp NY

TrustCo Bank Corp NY is a $6.3 billion savings and loan holding company and through its subsidiary, Trustco Bank, operated 136 offices in New York, New Jersey, Vermont, Massachusetts, and Florida as of June 30, 2025.

In addition, the Bank’s Wealth Management 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 and the related earnings call 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 future performance, including our expectations regarding the impact of our loan portfolio’s growth, loan demand and funding cost on net interest income, and the anticipated effects of our capital management strategy, including our stock repurchase program.  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, changes in United States and foreign trade policy, continued elevated interest rates and ongoing armed conflicts (including the Russia/Ukraine conflict and the conflict in Israel and surrounding areas). 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:  future changes in interest rates; external economic factors, such as changes in monetary policy, ongoing inflationary pressures and continued elevated prices; exposure to credit risk in our lending activities; the risk of weakness in residential real estate markets; our increasing commercial loan portfolio; 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; the enforcement of federal cannabis laws and regulations and its impact on our ability to provide services in the cannabis industry; 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 impact of any expansion by us into new lines of business or new products and services; an increase in the prevalence of fraud and other financial crimes; the impact of severe weather events and climate change on us and the communities we serve, including societal responses to climate change; environmental, social and governance risks, as well as diversity, equity, and inclusion-related risks, and their impact on our reputation and relationships; 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 soundness of other financial institutions; U.S. government shutdowns, credit rating downgrades, or failure to increase the debt ceiling; 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, including changes in cybersecurity or privacy regulations; restrictions on data collection and use; our compliance with the USA PATRIOT Act, Bank Secrecy Act, and other laws and regulations that could result in material 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 impact of data breaches and cyber-attacks; the development and use of artificial intelligence; the impact of a failure in or breach of our operational or security systems or infrastructure, or those of third parties; the impact of an unauthorized disclosure of sensitive or confidential client or customer information; the impact of interruptions in the effective operation of our computer systems; the impact of anti-takeover provisions in our organizational documents; the impact of the manner in which we allocate capital; and other risks and uncertainties set forth in our public filings made with the Securities and Exchange Commission (the “SEC”), including our most recent Annual Report on Form 10-K for the year ended December 31, 2024, our Quarterly Report on Form 10-Q for the quarter ended March 31, 2025, and our Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2025 to be filed with the SEC. 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
  
   
6/30/2025
    
3/31/2025
    
6/30/2024
  
Summary of operations
                  
Net interest income
  
$
41,746
    
$
40,373
    
$
37,788
  
Provision for credit losses
    
650
      
300
      
500
  
Net gains on equity securities
    
-
      
-
      
1,360
  
Noninterest income, excluding net gains on equity securities
    
4,852
      
4,974
      
4,291
  
Noninterest expense
    
26,223
      
26,329
      
26,459
  
Net income
    
15,039
      
14,275
      
12,551
  
                         
Per share
                        
Net income per share:
                        
- Basic
  
$
0.79
    
$
0.75
    
$
0.66
  
- Diluted
    
0.79
      
0.75
      
0.66
  
Cash dividends
    
0.36
      
0.36
      
0.36
  
Book value at period end
    
36.75
      
36.16
      
34.46
  
Market price at period end
    
33.42
      
30.48
      
28.77
  
                         
At period end
                        
Full time equivalent employees
    
733
      
740
      
753
  
Full service banking offices
    
136
      
136
      
138
  
                         
Performance ratios
                        
Return on average assets
    
0.96
%
    
0.93
%
    
0.82
%
Return on average equity
    
8.73
      
8.49
      
7.76
  
Efficiency ratio (GAAP)
    
56.27
      
58.06
      
60.91
  
Adjusted Efficiency ratio (1)
    
55.15
      
58.00
      
62.84
  
Net interest spread
    
2.28
      
2.21
      
2.09
  
Net interest margin
    
2.71
      
2.64
      
2.53
  
Dividend payout ratio
    
45.27
      
47.97
      
54.57
  
                         
Capital ratios at period end
                        
Consolidated equity to assets
    
10.91
%
    
10.85
%
    
10.73
%
Consolidated tangible equity to tangible assets (1)
    
10.91
%
    
10.84
%
    
10.72
%
                         
Asset quality analysis at period end
                        
Nonperforming loans to total loans
    
0.35
%
    
0.37
%
    
0.38
%
Nonperforming assets to total assets
    
0.30
      
0.33
      
0.35
  
Allowance for credit losses on loans to total loans
    
0.99
      
0.99
      
0.99
  
Coverage ratio (2)
    
2.9
x
    
2.7
x
    
2.6
x

(1)
Non-GAAP Financial Measure, see Non-GAAP Financial Measures Reconciliation.
(2)
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
  
   
06/30/25
    
06/30/24
  
Summary of operations
            
Net interest income
  
$
82,119
      
74,366
  
Provision for credit losses
    
950
      
1,100
  
Net gains on equity securities
    
-
      
1,360
  
Noninterest income, excluding net gains on equity securities
    
9,826
      
9,134
  
Noninterest expense
    
52,552
      
51,362
  
Net income
    
29,314
      
24,677
  
                 
Per share
                
Net income per share:
                
- Basic
  
$
1.54
      
1.30
  
- Diluted
    
1.54
      
1.30
  
Cash dividends
    
0.72
      
0.72
  
Book value at period end
    
36.75
      
34.46
  
Market price at period end
    
33.42
      
28.77
  
                 
Performance ratios
                
Return on average assets
    
0.94
%
    
0.81
  
Return on average equity
    
8.61
      
7.65
  
Efficiency ratio (GAAP)
    
57.16
      
60.53
  
Adjusted Efficiency ratio (1)
    
56.56
      
61.40
  
Net interest spread
    
2.24
      
2.05
  
Net interest margin
    
2.68
      
2.48
  
Dividend payout ratio
    
46.58
      
55.51
  

(1)
Non-GAAP Financial Measure, see Non-GAAP Financial Measures Reconciliation.

Page | 7
CONSOLIDATED STATEMENTS OF INCOME

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

   
Three months ended
  
   
6/30/2025
    
3/31/2025
    
12/31/2024
    
9/30/2024
    
6/30/2024
  
Interest and dividend income:
                              
Interest and fees on loans
  
$
54,557
    
$
53,450
    
$
53,024
    
$
52,112
    
$
50,660
  
Interest and dividends on securities available for sale:
                                        
U. S. government sponsored enterprises
    
614
      
596
      
680
      
718
      
909
  
State and political subdivisions
    
-
      
-
      
-
      
-
      
1
  
Mortgage-backed securities and collateralized mortgage obligations - residential
    
1,613
      
1,483
      
1,418
      
1,397
      
1,451
  
Corporate bonds
    
210
      
260
      
358
      
361
      
362
  
Small Business Administration - guaranteed
participation securities
    
75
      
81
      
84
      
90
      
94
  
Other securities
    
8
      
7
      
6
      
2
      
2
  
Total interest and dividends on securities available for sale
    
2,520
      
2,427
      
2,546
      
2,568
      
2,819
  
                                         
Interest on held to maturity securities:
                                        
obligations - residential
    
54
      
57
      
59
      
62
      
65
  
Total interest on held to maturity securities
    
54
      
57
      
59
      
62
      
65
  
                                         
Federal Home Loan Bank stock
    
129
      
151
      
152
      
153
      
147
  
                                         
Interest on federal funds sold and other short-term investments
    
7,212
      
6,732
      
6,128
      
6,174
      
6,894
  
Total interest income
    
64,472
      
62,817
      
61,909
      
61,069
      
60,585
  
                                         
Interest expense:
                                        
Interest on deposits:
                                        
Interest-bearing checking
    
536
      
558
      
397
      
311
      
288
  
Savings
    
733
      
734
      
719
      
770
      
675
  
Money market deposit accounts
    
2,086
      
1,989
      
2,024
      
2,154
      
2,228
  
Time deposits
    
19,195
      
18,983
      
19,680
      
18,969
      
19,400
  
Interest on short-term borrowings
    
176
      
180
      
187
      
194
      
206
  
Total interest expense
    
22,726
      
22,444
      
23,007
      
22,398
      
22,797
  
 
                                        
Net interest income
    
41,746
      
40,373
      
38,902
      
38,671
      
37,788
  
                                         
Less: Provision for credit losses
    
650
      
300
      
400
      
500
      
500
  
Net interest income after provision for credit losses
    
41,096
      
40,073
      
38,502
      
38,171
      
37,288
  
                                         
Noninterest income:
                                        
Trustco Financial Services income
    
1,818
      
2,120
      
1,778
      
2,044
      
1,609
  
Fees for services to customers
    
2,266
      
2,645
      
2,226
      
2,482
      
2,399
  
Net gains on equity securities
    
-
      
-
      
-
      
23
      
1,360
  
Other
    
768
      
209
      
405
      
382
      
283
  
Total noninterest income
    
4,852
      
4,974
      
4,409
      
4,931
      
5,651
  
                                         
Noninterest expenses:
                                        
Salaries and employee benefits
    
11,876
      
11,894
      
12,068
      
12,134
      
12,520
  
Net occupancy expense
    
4,518
      
4,554
      
4,563
      
4,271
      
4,375
  
Equipment expense
    
1,918
      
1,944
      
2,404
      
1,757
      
1,990
  
Professional services
    
1,886
      
1,726
      
1,782
      
1,863
      
1,570
  
Outsourced services
    
2,460
      
2,700
      
3,051
      
2,551
      
2,755
  
Advertising expense
    
304
      
361
      
590
      
339
      
466
  
FDIC and other insurance
    
1,136
      
1,188
      
1,113
      
1,112
      
797
  
Other real estate expense, net
    
522
      
28
      
476
      
204
      
16
  
Other
    
1,603
      
1,934
      
2,118
      
1,969
      
1,970
  
Total noninterest expenses
    
26,223
      
26,329
      
28,165
      
26,200
      
26,459
  
                                         
Income before taxes
    
19,725
      
18,718
      
14,746
      
16,902
      
16,480
  
Income taxes
    
4,686
      
4,443
      
3,465
      
4,027
      
3,929
  
                                         
Net income
  
$
15,039
    
$
14,275
    
$
11,281
    
$
12,875
    
$
12,551
  
                                         
Net income per common share:
                                        
- Basic
  
$
0.79
    
$
0.75
    
$
0.59
    
$
0.68
    
$
0.66
  
                                         
- Diluted
    
0.79
      
0.75
      
0.59
      
0.68
      
0.66
  
                                         
Average basic shares (in thousands)
    
18,965
      
19,020
      
19,015
      
19,010
      
19,022
  
Average diluted shares (in thousands)
    
18,994
      
19,044
      
19,045
      
19,036
      
19,033
  

Page | 8
CONSOLIDATED STATEMENTS OF INCOME, Continued

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

   
Six Months Ended
  
   
06/30/25
    
06/30/24
  
Interest and dividend income:
            
Interest and fees on loans
  
$
108,007
      
100,464
  
Interest and dividends on securities available for sale:
                
U. S. government sponsored enterprises
    
1,210
      
1,815
  
State and political subdivisions
    
-
      
1
  
Mortgage-backed securities and collateralized mortgage obligations - residential
    
3,096
      
2,945
  
Corporate bonds
    
470
      
838
  
Small Business Administration - guaranteed participation securities
    
156
      
194
  
Other securities
    
15
      
5
  
Total interest and dividends on securities available for sale
    
4,947
      
5,798
  
                 
Interest on held to maturity securities:
                
Mortgage-backed securities-residential
    
111
      
133
  
Total interest on held to maturity securities
    
111
      
133
  
                 
Federal Home Loan Bank stock
    
280
      
299
  
                 
Interest on federal funds sold and other short-term investments
    
13,944
      
13,644
  
Total interest income
    
127,289
      
120,338
  
                 
Interest expense:
                
Interest on deposits:
                
Interest-bearing checking
    
1,094
      
528
  
Savings
    
1,467
      
1,387
  
Money market deposit accounts
    
4,075
      
4,570
  
Time deposits
    
38,178
      
39,077
  
Interest on short-term borrowings
    
356
      
410
  
Total interest expense
    
45,170
      
45,972
  
                 
Net interest income
    
82,119
      
74,366
  
 
                
Less: Provision for credit losses
    
950
      
1,100
  
Net interest income after provision for credit losses
    
81,169
      
73,266
  
                 
Noninterest income:
                
Trustco Financial Services income
    
3,938
      
3,425
  
Fees for services to customers
    
4,911
      
5,144
  
Net gains on equity securities
    
-
      
1,360
  
Other
    
977
      
565
  
Total noninterest income
    
9,826
      
10,494
  
                 
Noninterest expenses:
                
Salaries and employee benefits
    
23,770
      
23,947
  
Net occupancy expense
    
9,072
      
8,986
  
Equipment expense
    
3,862
      
3,728
  
Professional services
    
3,612
      
3,030
  
Outsourced services
    
5,160
      
5,256
  
Advertising expense
    
665
      
874
  
FDIC and other insurance
    
2,324
      
1,891
  
Other real estate expense, net
    
550
      
90
  
Other
    
3,537
      
3,560
  
Total noninterest expenses
    
52,552
      
51,362
  
                 
Income before taxes
    
38,443
      
32,398
  
Income taxes
    
9,129
      
7,721
  
                 
Net income
  
$
29,314
      
24,677
  
                 
Net income per common share:
                
- Basic
  
$
1.54
      
1.30
  
                 
- Diluted
    
1.54
      
1.30
  
                 
Average basic shares (in thousands)
    
18,992
      
19,023
  
Average diluted shares (in thousands)
    
19,019
      
19,033
  

Page | 9
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

(dollars in thousands)
(Unaudited)

   
6/30/2025
    
3/31/2025
    
12/31/2024
    
9/30/2024
    
6/30/2024
  
ASSETS:
                              
                               
Cash and due from banks
  
$
45,218
    
$
48,782
    
$
47,364
    
$
49,659
    
$
42,193
  
Federal funds sold and other short term investments
    
668,373
      
707,355
      
594,448
      
473,306
      
493,920
  
Total cash and cash equivalents
    
713,591
      
756,137
      
641,812
      
522,965
      
536,113
  
                                         
Securities available for sale:
                                        
U. S. government sponsored enterprises
    
71,241
      
65,942
      
85,617
      
90,588
      
106,796
  
States and political subdivisions
    
18
      
18
      
18
      
26
      
26
  
Mortgage-backed securities and collateralized mortgage obligations - residential
    
221,721
      
219,333
      
213,128
      
222,841
      
218,311
  

                                       
Small Business Administration - guaranteed participation securities
    
12,945
      
13,683
      
14,141
      
15,171
      
15,592
  
Corporate bonds
    
29,943
      
24,779
      
44,581
      
54,327
      
53,764
  
Other securities
    
698
      
698
      
700
      
701
      
688
  
Total securities available for sale
    
336,566
      
324,453
      
358,185
      
383,654
      
395,177
  
                                         
Held to maturity securities:
                                        
Mortgage-backed securities and collateralized mortgage
                                        
obligations-residential
    
4,836
      
5,090
      
5,365
      
5,636
      
5,921
  
Total held to maturity securities
    
4,836
      
5,090
      
5,365
      
5,636
      
5,921
  
                                         
Federal Reserve Bank and Federal Home Loan Bank stock
    
6,601
      
6,507
      
6,507
      
6,507
      
6,507
  
                                         
Loans:
                                        
Commercial
    
314,273
      
302,753
      
286,857
      
280,261
      
282,441
  
Residential mortgage loans
    
4,394,317
      
4,380,561
      
4,388,302
      
4,382,674
      
4,370,640
  
Home equity line of credit
    
435,433
      
419,806
      
409,261
      
393,418
      
370,063
  
Installment loans
    
12,678
      
13,017
      
13,638
      
14,503
      
15,168
  
Loans, net of deferred net costs
    
5,156,701
      
5,116,137
      
5,098,058
      
5,070,856
      
5,038,312
  
                                         
Less: Allowance for credit losses on loans
    
51,265
      
50,606
      
50,248
      
49,950
      
49,772
  
Net loans
    
5,105,436
      
5,065,531
      
5,047,810
      
5,020,906
      
4,988,540
  
                                         
Bank premises and equipment, net
    
38,129
      
37,178
      
33,782
      
33,324
      
33,466
  
Operating lease right-of-use assets
    
36,322
      
34,968
      
36,627
      
37,958
      
38,376
  
Other assets
    
106,894
      
108,681
      
108,656
      
98,730
      
102,544
  
                                         
Total assets
  
$
6,348,375
    
$
6,338,545
    
$
6,238,744
    
$
6,109,680
    
$
6,106,644
  
                                         
LIABILITIES:
                                        
Deposits:
                                        
Demand
  
$
784,351
    
$
793,306
    
$
762,101
    
$
753,878
    
$
745,227
  
Interest-bearing checking
    
1,045,043
      
1,067,948
      
1,027,540
      
988,527
      
1,029,606
  
Savings accounts
    
1,082,489
      
1,094,968
      
1,086,534
      
1,092,038
      
1,144,427
  
Money market deposit accounts
    
467,087
      
478,872
      
465,049
      
477,113
      
517,445
  
Time deposits
    
2,111,344
      
2,061,576
      
2,049,759
      
1,952,635
      
1,840,262
  
Total deposits
    
5,490,314
      
5,496,670
      
5,390,983
      
5,264,191
      
5,276,967
  
                                         
Short-term borrowings
    
82,370
      
82,275
      
84,781
      
91,450
      
89,720
  
Operating lease liabilities
    
39,350
      
38,324
      
40,159
      
41,469
      
42,026
  
Accrued expenses and other liabilities
    
43,536
      
33,468
      
46,478
      
43,549
      
42,763
  
                                         
Total liabilities
    
5,655,570
      
5,650,737
      
5,562,401
      
5,440,659
      
5,451,476
  
                                         
SHAREHOLDERS' EQUITY:
                                        
Capital stock
    
20,097
      
20,097
      
20,097
      
20,058
      
20,058
  
Surplus
    
259,490
      
259,182
      
258,874
      
257,644
      
257,490
  
Undivided profits
    
462,158
      
453,931
      
446,503
      
442,079
      
436,048
  
Accumulated other comprehensive income (loss), net of tax
    
1,663
      
(132
)
    
(3,861
)
    
(6,600
)
    
(14,268
)
Treasury stock at cost
    
(50,603
)
    
(45,270
)
    
(45,270
)
    
(44,160
)
    
(44,160
)
                                         
Total shareholders' equity
    
692,805
      
687,808
      
676,343
      
669,021
      
655,168
  
 
                                        
Total liabilities and shareholders' equity
  
$
6,348,375
    
$
6,338,545
    
$
6,238,744
    
$
6,109,680
    
$
6,106,644
  
                                         
Outstanding shares (in thousands)
    
18,851
      
19,020
      
19,020
      
19,010
      
19,010
  

Page | 10
(dollars in thousands)
(Unaudited)

   
6/30/2025
    
3/31/2025
    
12/31/2024
    
9/30/2024
    
6/30/2024
  
Nonperforming Assets
                              
                               
New York and other states*
                              
Loans in nonaccrual status:
                              
Commercial
  
$
684
    
$
688
    
$
343
    
$
466
    
$
741
  
Real estate mortgage - 1 to 4 family
    
14,048
      
14,795
      
14,671
      
15,320
      
14,992
  
Installment
    
34
      
139
      
108
      
163
      
131
  
Total nonperforming loans
    
14,766
      
15,622
      
15,122
      
15,949
      
15,864
  
Other real estate owned
    
1,136
      
2,107
      
2,175
      
2,503
      
2,334
  
Total nonperforming assets
  
$
15,902
    
$
17,729
    
$
17,297
    
$
18,452
    
$
18,198
  
                                         
Florida
                                        
Loans in nonaccrual status:
                                        
Commercial
  
$
-
    
$
-
    
$
-
    
$
314
    
$
314
  
Real estate mortgage - 1 to 4 family
    
3,132
      
3,135
      
3,656
      
3,176
      
2,985
  
Installment
    
12
      
3
      
22
      
5
      
22
  
Total nonperforming loans
    
3,144
      
3,138
      
3,678
      
3,495
      
3,321
  
Other real estate owned
    
-
      
-
      
-
      
-
      
-
  
Total nonperforming assets
  
$
3,144
    
$
3,138
    
$
3,678
    
$
3,495
    
$
3,321
  
                                         
Total
                                        
Loans in nonaccrual status:
                                        
Commercial
  
$
684
    
$
688
    
$
343
    
$
780
    
$
1,055
  
Real estate mortgage - 1 to 4 family
    
17,180
      
17,930
      
18,327
      
18,496
      
17,977
  
Installment
    
46
      
142
      
130
      
168
      
153
  
Total nonperforming loans
    
17,910
      
18,760
      
18,800
      
19,444
      
19,185
  
Other real estate owned
    
1,136
      
2,107
      
2,175
      
2,503
      
2,334
  
Total nonperforming assets
  
$
19,046
    
$
20,867
    
$
20,975
    
$
21,947
    
$
21,519
  
                                         
Quarterly Net (Recoveries) Chargeoffs
                                        
                                         
New York and other states*
                                        
Commercial
  
$
-
    
$
(3
)
  
$
62
    
$
65
    
$
-
  
Real estate mortgage - 1 to 4 family
    
(121
)
    
41
      
(316
)
    
104
      
(74
)
Installment
    
18
      
4
      
41
      
11
      
(2
)
Total net chargeoffs (recoveries)
  
$
(103
)
  
$
42
    
$
(213
)
  
$
180
    
$
(76
)
                                         
Florida
                                        
Commercial
  
$
-
    
$
(315
)
  
$
314
    
$
-
    
$
-
  
Real estate mortgage - 1 to 4 family
    
-
      
-
      
-
      
-
      
17
  
Installment
    
94
      
15
      
1
      
42
      
7
  
Total net (recoveries) chargeoffs
  
$
94
    
$
(300
)
  
$
315
    
$
42
    
$
24
  
                                         
Total
                                        
Commercial
  
$
-
    
$
(318
)
  
$
376
    
$
65
    
$
-
  
Real estate mortgage - 1 to 4 family
    
(121
)
    
41
      
(316
)
    
104
      
(57
)
Installment
    
112
      
19
      
42
      
53
      
5
  
Total net (recoveries) chargeoffs
  
$
(9
)
  
$
(258
)
  
$
102
    
$
222
    
$
(52
)
                                         
Asset Quality Ratios
                                        
                                         
Total nonperforming loans (1)
  
$
17,910
    
$
18,760
    
$
18,800
    
$
19,444
    
$
19,185
  
Total nonperforming assets (1)
    
19,046
      
20,867
      
20,975
      
21,947
      
21,519
  
Total net (recoveries) chargeoffs (2)
    
(9
)
    
(258
)
    
102
      
222
      
(52
)
                                         
Allowance for credit losses on loans (1)
    
51,265
      
50,606
      
50,248
      
49,950
      
49,772
  
                                         
Nonperforming loans to total loans
    
0.35
%
    
0.37
%
    
0.37
%
    
0.38
%
    
0.38
%
Nonperforming assets to total assets
    
0.30
%
    
0.33
%
    
0.34
%
    
0.36
%
    
0.35
%
Allowance for credit losses on loans to total loans
    
0.99
%
    
0.99
%
    
0.99
%
    
0.99
%
    
0.99
%
Coverage ratio (1)
    
286.2
%
    
269.8
%
    
267.3
%
    
256.9
%
    
259.4
%
Annualized net (recoveries) chargeoffs to average loans (2)
    
0.00
%
    
-0.02
%
    
0.01
%
    
0.02
%
    
0.00
%
Allowance for credit losses on loans to annualized net chargeoffs (2)
    
N/A
      
N/A
      
123.2
x
    
56.3
x
    
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, 2025
    
June 30, 2024
  
   
Average
    
Interest
    
Average
    
Average
    
Interest
    
Average
  
   
Balance
          
Rate
    
Balance
          
Rate
  
Assets
                                    
                                     
Securities available for sale:
                                    
U. S. government sponsored enterprises
  
$
73,468
    
$
614
      
3.34
%
  
$
113,844
    
$
909
      
3.20
%
Mortgage backed securities and collateralized mortgage obligations - residential
    
244,628
      
1,613
      
2.62
      
250,517
      
1,451
      
2.30
  
State and political subdivisions
    
18
      
0
      
6.77
      
26
      
1
      
6.75
  
Corporate bonds
    
25,707
      
210
      
3.26
      
55,065
      
362
      
2.63
  
Small Business Administration - guaranteed
participation securities
    
14,083
      
75
      
2.14
      
17,436
      
94
      
2.15
  
Other
    
697
      
8
      
4.59
      
694
      
2
      
1.15
  
                                                 
Total securities available for sale
    
358,601
      
2,520
      
2.81
      
437,582
      
2,819
      
2.58
  
                                                 
Federal funds sold and other short-term Investments
    
648,457
      
7,212
      
4.46
      
506,493
      
6,894
      
5.48
  
                                                 
Held to maturity securities:
                                                
Mortgage backed securities and collateralized mortgage obligations - residential
    
4,970
      
54
      
4.37
      
6,054
      
65
      
4.28
  
                                                 
Total held to maturity securities
    
4,970
      
54
      
4.37
      
6,054
      
65
      
4.28
  
                                                 
Federal Home Loan Bank stock
    
6,591
      
129
      
7.83
      
6,340
      
147
      
9.27
  
                                                 
Commercial loans
    
306,373
      
4,261
      
5.56
      
280,559
      
3,765
      
5.37
  
Residential mortgage loans
    
4,387,181
      
43,236
      
3.94
      
4,359,232
      
40,819
      
3.75
  
Home equity lines of credit
    
428,933
      
6,830
      
6.39
      
364,210
      
5,814
      
6.42
  
Installment loans
    
12,523
      
230
      
7.35
      
15,395
      
262
      
6.86
  
                                                 
Loans, net of unearned income
    
5,135,010
      
54,557
      
4.25
      
5,019,396
      
50,660
      
4.04
  
                                                 
Total interest earning assets
    
6,153,629
    
$
64,472
      
4.19
      
5,975,865
    
$
60,585
      
4.06
  
                                                 
Allowance for credit losses on loans
    
(50,777
)
                    
(49,454
)
                
Cash & non-interest earning assets
    
204,006
                      
181,688
                  
                                                 
                                                 
Total assets
  
$
6,306,858
                    
$
6,108,099
                  
                                                 
                                                 
Liabilities and shareholders' equity
                                                
                                                 
Deposits:
                                                
Interest bearing checking accounts
  
$
1,039,242
    
$
536
      
0.21
%
  
$
1,009,048
    
$
288
      
0.11
%
Money market accounts
    
470,824
      
2,086
      
1.78
      
524,068
      
2,228
      
1.71
  
Savings
    
1,087,467
      
733
      
0.27
      
1,145,922
      
675
      
0.24
  
Time deposits
    
2,085,329
      
19,195
      
3.69
      
1,873,139
      
19,400
      
4.17
  
 
                                                
Total interest bearing deposits
    
4,682,862
      
22,550
      
1.93
      
4,552,177
      
22,591
      
2.00
  
Short-term borrowings
    
81,055
      
176
      
0.87
      
93,703
      
206
      
0.89
  
                                                 
Total interest bearing liabilities
    
4,763,917
    
$
22,726
      
1.91
      
4,645,880
    
$
22,797
      
1.97
  
                                                 
Demand deposits
    
777,956
                      
735,262
                  
Other liabilities
    
73,903
                      
76,258
                  
Shareholders' equity
    
691,082
                      
650,699
                  
                                                 
Total liabilities and shareholders' equity
  
$
6,306,858
                    
$
6,108,099
                  
                                                 
Net interest income
          
$
41,746
                    
$
37,788
          
                                                 
Net interest spread
                    
2.28
%
                    
2.09
%
                                                 
Net interest margin (net interest income to
total interest earning assets)
                    
2.71
%
                    
2.53
%

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, 2025
    
June 30, 2024
  
   
Average
    
Interest
    
Average
    
Average
    
Interest
    
Average
  
   
Balance
          
Rate
    
Balance
          
Rate
  
Assets
                                    
                                     
Securities available for sale:
                                    
U. S. government sponsored enterprises
  
$
74,071
      
1,210
      
3.27
%
  
$
119,908
      
1,815
      
3.03
%
Mortgage backed securities and collateralized mortgage obligations - residential
    
242,083
      
3,096
      
2.56
      
254,665
      
2,945
      
2.31
  
State and political subdivisions
    
18
      
-
      
6.77
      
26
      
1
      
6.82
  
Corporate bonds
    
32,823
      
470
      
2.86
      
64,345
      
838
      
2.60
  
Small Business Administration - guaranteed
participation securities
    
14,540
      
156
      
2.15
      
17,830
      
194
      
2.18
  
Mortgage backed securities and collateralized mortgage
                                                
obligations - commercial
    
-
                      
-
      
-
      
-
  
Other
    
698
      
15
      
4.30
      
695
      
5
      
1.44
  
                                                 
Total securities available for sale
    
364,233
      
4,947
      
2.72
      
457,469
      
5,798
      
2.53
  
                                                 
Federal funds sold and other short-term Investments
    
631,148
      
13,944
      
4.46
      
502,072
      
13,644
      
5.47
  
                                                 
Held to maturity securities:
                                                
Mortgage backed securities and collateralized mortgage
obligations - residential
    
5,101
      
111
      
4.35
      
6,192
      
133
      
4.29
  
                                                 
Total held to maturity securities
    
5,101
      
111
      
4.35
      
6,192
      
133
      
4.29
  
                                                 
Federal Home Loan Bank stock
    
6,549
      
280
      
8.55
      
6,271
      
299
      
9.54
  
                                                 
Commercial loans
    
302,173
      
8,426
      
5.58
      
278,871
      
7,425
      
5.33
  
Residential mortgage loans
    
4,386,418
      
85,851
      
3.92
      
4,359,351
      
81,236
      
3.73
  
Home equity lines of credit
    
421,498
      
13,265
      
6.35
      
358,607
      
11,277
      
6.32
  
Installment loans
    
12,744
      
465
      
7.36
      
15,761
      
526
      
6.72
  
                                                 
Loans, net of unearned income
    
5,122,833
      
108,007
      
4.22
      
5,012,590
      
100,464
      
4.01
  
                                                 
Total interest earning assets
    
6,129,864
      
127,289
      
4.16
      
5,984,594
      
120,338
      
4.03
  
                                                 
Allowance for credit losses on loans
    
(50,627
)
                    
(49,139
)
                
Cash & non-interest earning assets
    
202,590
                      
188,364
                  
                                                 
                                                 
Total assets
  
$
6,281,827
                    
$
6,123,819
                  
                                                 
                                                 
Liabilities and shareholders' equity
                                                
                                                 
Deposits:
                                                
Interest bearing checking accounts
  
$
1,038,733
      
1,094
      
0.21
%
  
$
999,589
      
528
      
0.11
%
Money market accounts
    
469,952
      
4,075
      
1.75
      
534,378
      
4,570
      
1.72
  
Savings
    
1,088,408
      
1,467
      
0.27
      
1,152,241
      
1,387
      
0.24
  
Time deposits
    
2,069,998
      
38,178
      
3.72
      
1,881,535
      
39,077
      
4.18
  
Total interest bearing deposits
    
4,667,091
      
44,814
      
1.94
      
4,567,743
      
45,562
      
2.01
  
Short-term borrowings
    
82,125
      
356
      
0.87
      
93,510
      
410
      
0.88
  
                                                 
Total interest bearing liabilities
    
4,749,216
      
45,170
      
1.92
      
4,661,253
      
45,972
      
1.98
  
                                                 
Demand deposits
    
769,923
                      
730,781
                  
Other liabilities
    
76,308
                      
83,105
                  
Shareholders' equity
    
686,380
                      
648,680
                  
                                                 
Total liabilities and shareholders' equity
  
$
6,281,827
                    
$
6,123,819
                  
                                                 
Net interest income
            
82,119
                      
74,366
          
                                                 
Net interest spread
                    
2.24
%
                    
2.05
%
                                                 
                                                 
Net interest margin (net interest income to
                                                
total interest earning assets)
                    
2.68
%
                    
2.48
%

Page | 13
Non-GAAP Financial Measures Reconciliation

Tangible book value per share is a non-GAAP financial measure derived from GAAP-based amounts. We calculate tangible book value by excluding the balance of intangible assets from total shareholders’ equity divided by shares outstanding. 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 exclusive of changes in intangible assets.

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.

Adjusted efficiency ratio is a non-GAAP measures of expense control relative to revenue from net interest income and non-interest fee income.  We calculate the efficiency ratio by dividing total non-interest expense by the sum of net interest income and total non-interest income.  We calculate the adjusted efficiency ratio by dividing total noninterest expenses as determined under GAAP, excluding other real estate expense, net, by net interest income and total noninterest income as determined under GAAP, excluding net gains on equity securities. 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 book value to shares outstanding, tangible equity as a percentage of tangible assets, and efficiency ratio to the most directly comparable GAAP measures is set forth below.

Page | 14
NON-GAAP FINANCIAL MEASURES RECONCILIATION

(dollars in thousands)
(Unaudited)
   
6/30/2025
    
3/31/2025
    
6/30/2024
  
Tangible Book Value Per Share
                  
                   
Equity (GAAP)
  
$
692,805
    
$
687,808
    
$
655,168
  
Less: Intangible assets
    
553
      
553
      
553
  
Tangible equity (Non-GAAP)
  
$
692,252
    
$
687,255
    
$
654,615
  
                         
Shares outstanding
    
18,851
      
19,020
      
19,010
  
Tangible book value per share
    
36.72
      
36.13
      
34.44
  
Book value per share
    
36.75
      
36.16
      
34.46
  
                         
Tangible Equity to Tangible Assets
                        
Total Assets (GAAP)
  
$
6,348,375
    
$
6,338,545
    
$
6,106,644
  
Less: Intangible assets
    
553
      
553
      
553
  
Tangible assets (Non-GAAP)
  
$
6,347,822
    
$
6,337,992
    
$
6,106,091
  
                         
Consolidated Equity to Assets (GAAP)
    
10.91
%
    
10.85
%
    
10.73
%
Consolidated Tangible Equity to Tangible Assets (Non-GAAP)
    
10.91
%
    
10.84
%
    
10.72
%

         
Three months ended
    
Six Months Ended
  
Efficiency and Adjusted Efficiency Ratios
        
6/30/2025
    
3/31/2025
    
6/30/2024
    
6/30/2025
    
6/30/2024
  
                                     
Net interest income (GAAP)
    
A
  
$
41,746
    
$
40,373
    
$
37,788
    
$
82,119
    
$
74,366
  
Non-interest income (GAAP)
    
B
    
4,852
      
4,974
      
5,651
      
9,826
      
10,494
  
Less:  Net gains on equity securities
          
-
      
-
      
1,360
      
-
      
1,360
  
Revenue used for efficiency ratio (Non-GAAP)
    
C
  
$
46,598
    
$
45,347
    
$
42,079
    
$
91,945
    
$
83,500
  
                                               
Total noninterest expense (GAAP)
    
D
  
$
26,223
    
$
26,329
    
$
26,459
    
$
52,552
    
$
51,362
  
Less:  Other real estate expense, net
    
E
    
522
      
28
      
16
      
550
      
90
  
Expense used for efficiency ratio (Non-GAAP)
    
F
  
$
25,701
    
$
26,301
    
$
26,443
    
$
52,002
    
$
51,272
  
                                               
Efficiency Ratio (GAAP)
    
D/(A+B)
    
56.27
%
    
58.06
%
    
60.91
%
    
57.16
%
    
60.53
%
Adjusted Efficiency Ratio (Non-GAAP)
    
F/C
    
55.15
%
    
58.00
%
    
62.84
%
    
56.56
%
    
61.40
%


Page | 15