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

GLENVILLE, N.Y: 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...