TRUSTCO BANK CORP N Y - FORM 8-K - EX-99.1 - EXHIBIT 99(A)

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8-K - TRUSTCO BANK CORP NY 8-K 1-21-2014 - TRUSTCO BANK CORP N Y	form8-k.htm

Exhibit 99(a)

News Release

5 Sarnowski Drive, Glenville, New York, 12302

(518) 377-3311 Fax: (518) 381-3668

Subsidiary: Trustco Bank

NASDAQ -- TRST

Contact: Kevin T. Timmons

Vice President/Treasurer

(518) 381-3607

Executive Snapshot:

Continued strong financial results:

Fourth quarter 2013:

Net income up 8.4% from the fourth quarter of 2012

Diluted EPS up 7.7%

Return on average assets (ROA) rose 3 basis points to 0.94%

Return on average equity (ROE) rose 90 basis points to 11.78%

Efficiency ratio improved 96 basis points to 52.15%

Net interest margin improved 3 basis points to 3.15% versus the third quarter

Full year 2013:

Net income up 6.1% from 2012

Diluted EPS up 5.5%

ROA rose 3 basis points to 0.90%

ROE rose 45 basis points to 11.15%

Paid $24.8 million in cash dividends

Continued expansion of customer base:

Focus on capitalizing on the opportunities presented by expanded branch franchise

Deposits per branch grew from $27.6 million at year-end 2012 to $28.3 million at year-end 2013

Average core deposits grew $192 million from 2012 to 2013

Asset quality improvement:

Non-performing assets (NPAs) fell $9.3 million to $52.1 million at year-end 2013

NPAs to total assets improved from 1.41% to 1.15%

Net charge-offs (NCOs) declined to $7.2 million for 2013 from $12.8 million in 2012

NCOs to average loans improved from 0.50% in 2012 to 0.26% in 2013

The loan loss allowance coverage of annual NCOs improved from 3.7x in 2012 to 6.6x in 2013

Page 1

FOR IMMEDIATE RELEASE:

TrustCo Announces Fourth Quarter Earnings Up 8.4% Over Prior Year

Glenville, New York –January 21, 2014

TrustCo Bank Corp NY (TrustCo, Nasdaq: TRST) today announced that net income rose to $10.6 million in the quarter ended December 31, 2013, up 8.4% from $9.8 million for the quarter ended December 31, 2012. Full year net income rose 6.1% to $39.8 million for 2013 versus the prior year.

TrustCo saw continued strong loan growth in the fourth quarter of 2013. The gains were funded by continued expansion of retail deposits, along with a shift from lower yielding investment securities, and helped boost the average yield on earning assets and the net interest margin. Robert J. McCormick, President and Chief Executive Officer noted, "Our results for the fourth quarter of 2013 continued the progress we made in the first nine months of the year in terms of bottom line growth and in positioning our business for the future. In addition to the gain in net income, we continue to add profitable customer relationships on both the loan and deposit sides of the Bank. Our highly liquid balance sheet continues to allow us to fund our loan growth without having to overpay for deposits. Our cost of interest-bearing deposits remained at just 0.38% in the fourth quarter, flat with the third quarter and down four basis points relative to the year-earlier quarter. We look forward to 2014 with optimism, though we note that our industry continues to face challenges including an increasingly complex and burdensome regulatory environment, an economy that remains fragile and an interest rate environment that remains mixed. We will continue to take advantage of opportunities as they are presented."

Mr. McCormick also noted "There are continued economic improvements in the markets in which we operate, particularly Florida, although unemployment and other persistent issues continue to constrain any significant economic growth. Our long-term focus on traditional lending criteria and conservative balance sheet management has enabled us to maintain a strong balance sheet and continued profitability. As a result, we have been able to focus on conducting business, which has significantly enhanced our reputation and put us in a position to take advantage of changes in market and competitive conditions."

Return on average assets and return on average equity were 0.94% and 11.78%, respectively for the fourth quarter of 2013, compared to 0.91% and 10.88% for the fourth quarter of 2012. Diluted earnings per share were $0.112 for the fourth quarter of 2013, up 7.7% from $0.104 for the fourth quarter of 2012. For the full year, TrustCo earned $39.8 million or $0.422 per diluted share, compared to $37.5 million or $0.400 per share for 2012.

On a year-over-year basis, average loans were up $227.1 million or 8.6% in the fourth quarter of 2013, over the same period in 2012. Average deposits were up $138.5 million for the fourth quarter of 2013 over the same period a year earlier. Customers continued to move some funds into certificates with slightly longer maturities, which may be helpful if rates rise, without having a material impact on the current cost of funds. For the full year, core deposits rose $192 million. Core deposits typically represent longer term customer relationships and are generally lower cost than time deposits. Mr. McCormick noted that, "The year-over-year growth of our loans and the shift in our deposit base reflects the long term strategic focus of the Company.

Page 2

While some banks have backed away from branches, a customer friendly branch franchise continues to be the key to our long term plans. During 2013 we celebrated the ten year anniversary of our expansion into Florida, and have made significant progress expanding loans and deposits through our branches. We expect that trend to continue as the new branches continue to grow. We also note we have always designed our branches to be smaller and more cost effective than those built by many of our competitors. We have utilized open floor plans that help maximize the value of our branches. We remain mindful that fully achieving our goals for our newer branches will take time and continued hard work. We believe our success in growing customer relationships provides the basic building blocks that will help drive profit growth over the coming years."

Asset quality, reserve coverage of nonperforming loans (NPLs) and reserve coverage of net charge-offs all improved from December 31, 2012 to December 31, 2013. NPLs declined to $43.4 million at December 31, 2013, compared to $52.7 million at December 31, 2012 and nonperforming assets (NPAs) declined to $52.1 million from $61.4 million over the same period. NPLs were equal to 1.49% of total loans at year-end, compared to 1.96% a year earlier. For the fourth quarter of 2013 the allowance for loan losses covered annualized fourth quarter net charge-offs by 7.9 times, compared to an annualized 4.9 times for the fourth quarter of 2012. The coverage ratio, or allowance for loan losses to NPLs, was 110.0% at December 31, 2013, compared to 91.0% at December 31, 2012. Overall, every asset quality indicator improved during the fourth quarter of 2013 relative to the fourth quarter of 2012. The ratio of reserves to total loans was 1.64% as of December 31, 2013, compared to 1.68% at September 30, 2013. This decline was the result of loan growth as the loan loss reserve remained at $47.7 million. During the fourth quarter of 2013 approximately $1.6 million of NPAs were sold to a third party at a slight gain.

The net interest margin for the fourth quarter of 2013 was 3.15%, compared to 3.12% in the third quarter of 2013.

At December 31, 2013 the tangible equity ratio was 7.99% compared to 7.94% at September 30, 2013 and 8.24% at December 31, 2012. Tangible book value per share ended the fourth quarter at $3.82 compared to $3.81 in the year-ago period.

TrustCo Bank Corp NY is a $4.5 billion savings and loan holding company and through its subsidiary, Trustco Bank, operated 139 offices in New York, New Jersey, Vermont, Massachusetts, and Florida at December 31, 2013.

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.

A conference call to discuss fourth quarter 2013 results will be held at 9:00 a.m. Eastern Time on January 22, 2014. Those wishing to participate in the call may dial toll-free 1-888-317-6016. International callers must dial + 1-412-317-6016. A replay of the call will be available thirty days by dialing 1-877-344-7529 (1-412-317-0088 for international callers), Conference Number 10039245. The call will also be audio webcast at: https://services.choruscall.com/links/trst140122.html, and will be available for one year.

Page 3

Safe Harbor Statement

All statements in this news release that are not historical are forward-looking statements within the meaning of the Securities Exchange Act of 1934, as amended. The "forward-looking statements" may include statements regarding future events or performance. Such forward-looking statements are subject to factors that could cause actual results to differ materially for TrustCo from those discussed. TrustCo wishes to caution readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. The following important factors, among others, in some cases have affected and in the future could affect TrustCo's actual results and could cause TrustCo's actual financial performance to differ materially from that expressed in any forward-looking statement: credit risk, the effects of and changes in, trade, monetary and fiscal policies and laws, including interest rate policies of the Board of Governors of the Federal Reserve System, inflation, interest rates, market and monetary fluctuations, competition, the effect of changes in financial services laws and regulations (including laws concerning taxation, banking and securities), real estate and collateral values, changes in accounting policies and practices, as may be adopted by the bank regulatory agencies, the Financial Accounting Standards Board ("FASB") or the Public Company Accounting Oversight Board; changes in local market areas and general business and economic trends and the matters described under the heading "Risk Factors" in our annual report on Form 10-K for the year ended December 31, 2012, as amended, and in our subsequent securities filings.

Page 4

TRUSTCO BANK CORP NY

GLENVILLE, NY

FINANCIAL HIGHLIGHTS

(dollars in thousands, except per share data)

(Unaudited)

				Three Months Ended
	12/31/13			09/30/13			12/31/12
Summary of operations
Net interest income (TE)	$	34,577			34,180			33,718
Provision for loan losses		1,500			1,500			3,000
Net securities transactions		188			-			763
Noninterest income		4,660			4,414			5,398
Noninterest expense		20,891			20,688			21,150
Net income		10,629			10,252			9,806

Per common share
Net income per share:
- Basic	$	0.113			0.109			0.104
- Diluted		0.112			0.109			0.104
Cash dividends		0.066			0.066			0.066
Tangible Book value at period end		3.82			3.75			3.81
Market price at period end		7.18			5.95			5.28

At period end
Full time equivalent employees		708			708			759
Full service banking offices		139			139			138

Performance ratios
Return on average assets		0.94	%		0.91			0.91
Return on average equity		11.78			11.64			10.88
Efficiency (1)		52.15			51.15			53.11
Net interest spread (TE)		3.10			3.06			3.15
Net interest margin (TE)		3.15			3.12			3.21
Dividend payout ratio		58.44			60.38			63.00

Capital ratio at period end
Consolidated tangible equity to tangible assets (2)		7.99			7.94			8.24

Asset quality analysis at period end
Nonperforming loans to total loans		1.49			1.47			1.96
Nonperforming assets to total assets		1.15			1.16			1.41
Allowance for loan losses to total loans		1.64			1.68			1.79
Coverage ratio (3)		1.1	x		1.1	x		0.9	X

(1)	Calculated as noninterest expense (excluding ORE income/expense) divided by taxable equivalent net interest income plus noninterest income (excluding net securities transactions).

(2)	The tangible equity ratio excludes $553,000 of intangibles from both equity and assets.

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

TE = Taxable equivalent.

Page 5

FINANCIAL HIGHLIGHTS, Continued

(dollars in thousands, except per share data)

(Unaudited)

	Years Ended
	12/31/13			12/31/12
Summary of operations
Net interest income (TE)	$	136,094			135,669
Provision for loan losses		7,000			12,000
Net securities transactions		1,622			2,161
Noninterest income		18,148			18,803
Noninterest expense		85,005			83,977
Net income		39,812			37,534

Per common share
Net income per share:
- Basic	$	0.422			0.400
- Diluted		0.422			0.400
Cash dividends		0.263			0.263
Tangible Book value at period end		3.82			3.81
Market price at period end		7.18			5.28

Performance ratios
Return on average assets		0.90	%		0.87
Return on average equity		11.15			10.70
Efficiency (1)		52.78			52.28
Net interest spread (TE)		3.08			3.13
Net interest margin (TE)		3.14			3.20
Dividend payout ratio		62.19			65.60

(1)	Calculated as noninterest expense (excluding ORE income/expense) divided by taxable equivalent net interest income plus noninterest income (excluding net securities transactions).

TE = Taxable equivalent.

Page 6

(dollars in thousands, except per share data)

(Unaudited)

	Three Months Ended
	12/31/2013		9/30/2013		6/30/2013		3/31/2013		12/31/2012
Interest and dividend income:
Interest and fees on loans	$	32,658		32,166		31,639		31,481		31,776
Interest and dividends on securities available for sale:
U. S. government sponsored enterprises		586		571		627		816		1,191
State and political subdivisions		96		127		148		191		295
Mortgage-backed securities and collateralized mortgage obligations-residential		3,027		2,888		2,701		2,769		2,237
Corporate bonds		138		223		233		218		232
Small Business Administration-guaranteed participation securities		562		558		564		496		276
Mortgage-backed securities and collateralized mortgage obligations-commercial		38		39		38		29		-
Other securities		4		5		3		5		5
Total interest and dividends on securities available for sale		4,451		4,411		4,314		4,524		4,236

Interest on held to maturity securities:
Mortgage-backed securities and collateralized mortgage obligations-residential		649		686		716		789		823
Corporate bonds		153		154		214		312		385
Total interest on held to maturity securities		802		840		930		1,101		1,208

Federal Reserve Bank and Federal Home Loan Bank stock		129		121		121		119		127

Interest on federal funds sold and other short-term investments		324		344		327		245		265
Total interest income		38,364		37,882		37,331		37,470		37,612

Interest expense:
Interest on deposits:
Interest-bearing checking		83		84		82		80		80
Savings		790		798		829		916		921
Money market deposit accounts		611		590		630		685		703
Time deposits		1,982		1,937		1,883		1,820		1,967
Interest on short-term borrowings		382		370		367		364		361
Total interest expense		3,848		3,779		3,791		3,865		4,032

Net interest income		34,516		34,103		33,540		33,605		33,580

Provision for loan losses		1,500		1,500		2,000		2,000		3,000
Net interest income after provision for loan losses		33,016		32,603		31,540		31,605		30,580

Noninterest income:
Trustco Financial Services income		1,276		1,317		1,287		1,421		1,815
Fees for services to customers		2,917		2,903		2,968		2,887		3,386
Net gain on securities transactions		188		-		1,432		2		763
Other		467		194		229		282		197
Total noninterest income		4,848		4,414		5,916		4,592		6,161

Noninterest expenses:
Salaries and employee benefits		8,664		7,935		7,647		8,178		8,427
Net occupancy expense		4,226		3,911		3,910		4,053		3,889
Equipment expense		1,514		1,567		1,582		1,718		1,637
Professional services		1,409		1,255		1,565		1,420		1,458
Outsourced services		1,075		1,350		1,350		1,350		1,175
Advertising expense		835		548		714		730		1,037
FDIC and other insurance		952		1,009		1,004		1,010		1,007
Other real estate expense, net		430		946		1,473		749		375
Other		1,786		2,167		2,624		2,349		2,145
Total noninterest expenses		20,891		20,688		21,869		21,557		21,150

Income before taxes		16,973		16,329		15,587		14,640		15,591
Income taxes		6,344		6,077		5,824		5,472		5,785

Net income	$	10,629		10,252		9,763		9,168		9,806
Net income per Common Share:
- Basic	$	0.113		0.109		0.104		0.097		0.104

- Diluted		0.112		0.109		0.104		0.097		0.104

Average basic shares (thousands)		94,347		94,228		94,204		94,068		93,824
Average diluted shares (thousands)		94,472		94,275		94,211		94,073		93,828

Note: Taxable equivalent net interest income	$	34,577		34,180		33,630		33,707		33,718

Page 7

CONSOLIDATED STATEMENTS OF INCOME

(dollars in thousands, except per share data)
(Unaudited)
	Years Ended
	12/31/2013		12/31/2012

Interest and dividend income:
Interest and fees on loans	$	127,944		128,581
Interest and dividends on securities available for sale:
U. S. government sponsored enterprises		2,600		8,097
State and political subdivisions		562		1,413
Mortgage-backed securities and collateralized mortgage obligations-residential		11,385		6,697
Corporate bonds		812		2,231
Small Business Administration-guaranteed participation securities		2,180		319
Mortgage-backed securities and collateralized mortgage obligations-commercial		144		-
Other securities		17		19
Total interest and dividends on securities available for sale		17,700		18,776

Interest on held to maturity securities:
U. S. government sponsored enterprises		-		25
Mortgage-backed securities and collateralized mortgage obligations-residential		2,840		4,287
Corporate bonds		833		1,666
Total interest on held to maturity securities		3,673		5,978

Federal Reserve Bank and Federal Home Loan Bank stock		490		486

Interest on federal funds sold and other short-term investments		1,240		1,142
Total interest income		151,047		154,963

Interest expense:
Interest on deposits:
Interest-bearing checking		329		315
Savings		3,333		3,872
Money market deposit accounts		2,516		3,069
Time deposits		7,622		11,244
Interest on short-term borrowings		1,483		1,475
Total interest expense		15,283		19,975

Net interest income		135,764		134,988

Provision for loan losses		7,000		12,000
Net interest income after provision for loan losses		128,764		122,988

Noninterest income:
Trust department income		5,301		5,761
Fees for services to customers		11,675		12,290
Net gain on securities transactions		1,622		2,161
Other		1,172		752
Total noninterest income		19,770		20,964

Noninterest expenses:
Salaries and employee benefits		32,424		31,276
Net occupancy expense		16,100		15,257
Equipment expense		6,381		6,073
Professional services		5,649		6,040
Outsourced services		5,125		5,122
Advertising expense		2,827		3,841
FDIC and other insurance		3,975		3,823
Other real estate expense, net		3,598		3,216
Other		8,926		9,329
Total noninterest expenses		85,005		83,977

Income before taxes		63,529		59,975
Income taxes		23,717		22,441

Net income	$	39,812		37,534

Net income per Common Share:
- Basic	$	0.422		0.400

- Diluted		0.422		0.400

Average basic shares (thousands)		94,160		93,633
Average diluted shares (thousands)		94,206		93,637

Note: Taxable equivalent net interest income	$	136,094		135,669

Page 8

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

(dollars in thousands)

(Unaudited)

	12/31/2013			9/30/2013			6/30/2013			3/31/2013			12/31/2012
ASSETS:

Cash and due from banks	$	46,453			45,088			40,580			39,512			55,789
Federal funds sold and other short term investments		536,591			510,561			588,252			405,262			488,227
Total cash and cash equivalents		583,044			555,649			628,832			444,774			544,016

Securities available for sale:
U. S. government sponsored enterprises		198,829			193,614			188,133			263,165			263,108
States and political subdivisions		7,758			11,199			12,159			15,265			26,457
Mortgage-backed securities and collateralized mortgage obligations-residential		532,449			534,301			504,793			612,555			518,776
Corporate bonds		10,471			53,094			53,053			59,239			26,529
Small Business Administration-guaranteed participation securities		103,029			104,863			108,665			115,464			76,562
Mortgage-backed securities and collateralized mortgage obligations-commercial		10,558			10,715			10,725			11,136			-
Other securities		660			660			660			660			660
Total securities available for sale		863,754			908,446			878,188			1,077,484			912,092

Held to maturity securities:
Mortgage-backed securities and collateralized mortgage obligations-residential		76,270			81,337			88,852			98,038			108,471
Corporate bonds		9,945			9,941			9,937			19,935			34,955
Total held to maturity securities		86,215			91,278			98,789			117,973			143,426

Federal Reserve Bank and Federal Home Loan Bank stock		10,500			10,500			10,500			9,632			9,632

Loans:
Commercial		223,481			212,833			216,977			212,637			219,577
Residential mortgage loans		2,338,944			2,279,064			2,205,334			2,154,188			2,126,668
Home equity line of credit		340,489			337,178			334,571			332,111			333,909
Installment loans		5,895			5,894			5,544			4,831			4,579
Loans, net of deferred fees and costs		2,908,809			2,834,969			2,762,426			2,703,767			2,684,733
Less:
Allowance for loan losses		47,714			47,722			47,589			47,658			47,927
Net loans		2,861,095			2,787,247			2,714,837			2,656,109			2,636,806

Bank premises and equipment, net		34,414			34,559			38,301			35,787			36,239
Other assets		82,430			71,728			73,757			69,998			64,402

Total assets	$	4,521,452			4,459,407			4,443,204			4,411,757			4,346,613

LIABILITIES:
Deposits:
Demand	$	318,456			314,660			314,985			298,243			300,544
Interest-bearing checking		611,127			591,590			591,844			579,077			560,064
Savings accounts		1,218,038			1,221,791			1,228,281			1,213,226			1,198,517
Money market deposit accounts		648,402			650,688			634,804			656,577			667,589
Certificates of deposit (in denominations of $100,000 or more)		431,008			405,575			397,707			384,559			352,734
Other time accounts		700,040			710,064			725,255			725,998			724,745
Total deposits		3,927,071			3,894,368			3,892,876			3,857,680			3,804,193

Short-term borrowings		204,162			185,226			176,325			171,019			159,846
Accrued expenses and other liabilities		28,406			25,425			25,380			22,169			23,776

Total liabilities		4,159,639			4,105,019			4,094,581			4,050,868			3,987,815

SHAREHOLDERS' EQUITY:
Capital stock		98,927			98,912			98,912			98,912			98,912
Surplus		173,144			173,408			173,897			174,386			174,899
Undivided profits		147,432			143,015			138,953			135,373			132,378
Accumulated other comprehensive income (loss), net of tax		(13,803	)		(15,923	)		(16,831	)		(169	)		1,558
Treasury stock at cost		(43,887	)		(45,024	)		(46,308	)		(47,613	)		(48,949	)

Total shareholders' equity		361,813			354,388			348,623			360,889			358,798

Total liabilities and shareholders' equity	$	4,521,452			4,459,407			4,443,204			4,411,757			4,346,613

Outstanding shares (thousands)		94,463			94,334			94,204			94,071			93,935

Page 9

NONPERFORMING ASSETS

(dollars in thousands)

(Unaudited)

Nonperforming Assets

	12/31/13			09/30/13			06/30/13			03/31/13			12/31/12
New York and other states*
Loans in nonaccrual status:
Commercial	$	6,952			5,436			5,891			5,978			6,635
Real estate mortgage - 1 to 4 family		31,045			30,643			30,736			34,027			35,286
Installment		93			71			36			35			6
Total non-accrual loans		38,090			36,150			36,663			40,040			41,927
Other nonperforming real estate mortgages - 1 to 4 family		166			170			174			225			231
Total nonperforming loans		38,256			36,320			36,837			40,265			42,158
Other real estate owned		3,348			3,011			3,918			4,461			2,979
Total nonperforming assets	$	41,604			39,331			40,755			44,726			45,137

Florida
Loans in nonaccrual status:
Commercial	$	-			-			583			2,595			2,698
Real estate mortgage - 1 to 4 family		5,137			5,406			6,022			7,013			7,820
Installment		-			-			-			1			1
Total non-accrual loans		5,137			5,406			6,605			9,609			10,519
Other nonperforming real estate mortgages - 1 to 4 family		-			-			-			-			-
Total nonperforming loans		5,137			5,406			6,605			9,609			10,519
Other real estate owned		5,381			6,816			6,427			5,406			5,726
Total nonperforming assets	$	10,518			12,222			13,032			15,015			16,245

Total
Loans in nonaccrual status:
Commercial	$	6,952			5,436			6,474			8,573			9,333
Real estate mortgage - 1 to 4 family		36,182			36,049			36,758			41,040			43,106
Installment		93			71			36			36			7
Total non-accrual loans		43,227			41,556			43,268			49,649			52,446
Other nonperforming real estate mortgages - 1 to 4 family		166			170			174			225			231
Total nonperforming loans		43,393			41,726			43,442			49,874			52,677
Other real estate owned		8,729			9,827			10,345			9,867			8,705
Total nonperforming assets	$	52,122			51,553			53,787			59,741			61,382


Quarterly Net Chargeoffs
	12/31/13			09/30/13			06/30/13			03/31/13			12/31/12
New York and other states*
Commercial	$	176			585			49			248			152
Real estate mortgage - 1 to 4 family		1,194			1,215			1,885			1,563			1,410
Installment		(2	)		25			13			15			72
Total net chargeoffs	$	1,368			1,825			1,947			1,826			1,634

Florida
Commercial	$	(1	)		(502	)		(1	)		99			(18	)
Real estate mortgage - 1 to 4 family		138			41			123			344			810
Installment		3			3			-			-			12
Total net chargeoffs	$	140			(458	)		122			443			804

Total
Commercial	$	175			83			48			347			134
Real estate mortgage - 1 to 4 family		1,332			1,256			2,008			1,907			2,220
Installment		1			28			13			15			84
Total net chargeoffs	$	1,508			1,367			2,069			2,269			2,438


Asset Quality Ratios
	12/31/13			09/30/13			06/30/13			03/31/13			12/31/12
Total nonperforming loans(1)	$	43,393		$	41,726			43,442			49,874			52,677
Total nonperforming assets(1)		52,122			51,553			53,787			59,741			61,382
Total net chargeoffs(2)		1,508			1,367			2,069			2,269			2,438

Allowance for loan losses(1)		47,714			47,722			47,589			47,658			47,927

Nonperforming loans to total loans		1.49	%		1.47	%		1.57	%		1.84	%		1.96	%
Nonperforming assets to total assets		1.15	%		1.16	%		1.21	%		1.35	%		1.41	%
Allowance for loan losses to total loans		1.64	%		1.68	%		1.72	%		1.76	%		1.79	%
Coverage ratio(1)		110.0	%		114.4	%		109.5	%		95.6	%		91.0	%
Annualized net chargeoffs to average loans(2)		0.21	%		0.20	%		0.29	%		0.34	%		0.37	%
Allowance for loan losses to annualized net chargeoffs(2)		7.9	x		8.7	x		6.0	x		5.3	x		4.9	x

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

Page 10

DISTRIBUTION OF ASSETS, LIABILITIES AND SHAREHOLDERS' EQUITY-

INTEREST RATES AND INTEREST DIFFERENTIAL

(dollars in thousands)	Three months ended									Three months ended
(Unaudited)	December 31, 2013									December 31, 2012
	Average			Interest			Average			Average			Interest			Average
	Balance						Rate			Balance						Rate

Assets

Securities available for sale:
U. S. government sponsored enterprises	$	197,755			586			1.18	%	$	370,086			1,191			1.29	%
Mortgage backed securities and collateralized mortgage obligations-residential		543,856			3,027			2.23			480,382			2,237			1.86
State and political subdivisions		8,577			149			6.96			30,619			425			5.55
Corporate bonds		28,689			138			1.92			35,640			232			2.59
Small Business Administration-guaranteed participation securities		111,859			562			2.01			54,678			276			2.02
Mortgage backed securities and collateralized mortgage obligations-commercial		11,004			38			1.39			-			-			0.00
Other		523			4			3.06			660			5			3.03

Total securities available for sale		902,263			4,504			2.00			972,065			4,366			1.80

Federal funds sold and other short-term Investments		522,461			324			0.25			427,298			265			0.25

Held to maturity securities:
Corporate bonds		9,943			153			6.19			35,013			385			4.40
Mortgage backed securities and collateralized mortgage obligations-residential		78,821			649			3.29			114,647			823			2.87

Total held to maturity securities		88,764			802			3.62			149,660			1,208			3.23

Federal Reserve Bank and Federal Home Loan Bank stock		10,500			129			4.91			9,632			127			5.27

Commercial loans		215,124			2,766			5.14			216,787			2,917			5.38
Residential mortgage loans		2,306,591			26,771			4.64			2,087,003			25,804			4.95
Home equity lines of credit		339,281			2,954			3.45			331,441			2,905			3.49
Installment loans		5,653			175			12.26			4,274			158			14.68

Loans, net of unearned income		2,866,649			32,666			4.55			2,639,505			31,784			4.81

Total interest earning assets		4,390,637			38,425			3.50			4,198,160			37,750			3.59

Allowance for loan losses		(48,393	)								(48,312	)
Cash & non-interest earning assets		122,386									146,482


Total assets	$	4,464,630								$	4,296,330


Liabilities and shareholders' equity

Deposits:
Interest bearing checking accounts	$	587,854			83			0.06	%	$	532,579			80			0.06	%
Money market accounts		649,574			611			0.37			669,201			703			0.42
Savings		1,219,178			790			0.26			1,184,601			921			0.31
Time deposits		1,123,671			1,982			0.70			1,085,054			1,967			0.72

Total interest bearing deposits		3,580,277			3,466			0.38			3,471,435			3,671			0.42
Short-term borrowings		189,754			382			0.80			161,816			361			0.89

Total interest bearing liabilities		3,770,031			3,848			0.40			3,633,251			4,032			0.44

Demand deposits		313,174									283,528
Other liabilities		23,469									21,006
Shareholders' equity		357,956									358,545

Total liabilities and shareholders' equity	$	4,464,630								$	4,296,330

Net interest income , tax equivalent					34,577									33,718

Net interest spread								3.10	%								3.15	%

Net interest margin (net interest income
to total interest earning assets)								3.15	%								3.21	%

Tax equivalent adjustment					(61	)								(138	)


Net interest income					34,516									33,580

Page 11

(dollars in thousands)	Year ended									Year ended
(Unaudited)	December 31, 2013									December 31, 2012
	Average			Interest			Average			Average			Interest			Average
	Balance						Rate			Balance						Rate

Assets

Securities available for sale:
U. S. government sponsored enterprises	$	221,028			2,600			1.18	%	$	568,425			8,097			1.42	%
Mortgage backed securities and collateralized mortgage obligations-residential		545,487			11,385			2.09			334,616			6,697			2.00
State and political subdivisions		12,845			862			6.71			35,435			2,012			5.68
Corporate bonds		46,049			812			1.76			68,182			2,231			3.27
Small Business Administration-guaranteed participation securities		109,913			2,180			1.98			15,707			319			2.03
Mortgage backed securities and collateralized mortgage obligations-commercial		10,420			144			1.38			-			-			0.00
Other		625			17			2.72			660			19			2.88

Total securities available for sale		946,367			18,000			1.90			1,023,025			19,375			1.89

Federal funds sold and other short-term Investments		502,136			1,240			0.25			461,495			1,142			0.25

Held to maturity securities:
U. S. government sponsored enterprises		-			-			0.00			1,048			25			2.43
Corporate bonds		14,011			833			5.95			39,570			1,666			4.21
Mortgage backed securities and collateralized mortgage obligations-residential		90,360			2,840			3.14			131,092			4,287			3.27

Total held to maturity securities		104,371			3,673			3.52			171,710			5,978			3.48

Federal Reserve Bank and Federal Home Loan Bank stock		10,266			490			4.77			9,425			486			5.16

Commercial loans		214,756			11,210			5.22			230,539			12,486			5.42
Residential mortgage loans		2,216,346			104,646			4.72			2,017,230			104,028			5.16
Home equity lines of credit		335,409			11,452			3.41			321,299			11,551			3.60
Installment loans		5,152			666			12.93			3,915			598			15.28

Loans, net of unearned income		2,771,663			127,974			4.62			2,572,983			128,663			5.00

Total interest earning assets		4,334,803			151,377			3.49			4,238,638			155,644			3.67

Allowance for loan losses		(48,452	)								(49,148	)
Cash & non-interest earning assets		136,042									143,303


Total assets	$	4,422,393								$	4,332,793


Liabilities and shareholders' equity

Deposits:
Interest bearing checking accounts	$	578,531			329			0.06	%	$	515,062			315			0.06	%
Money market accounts		650,324			2,516			0.39			649,452			3,069			0.47
Savings		1,218,655			3,333			0.27			1,115,151			3,872			0.35
Time deposits		1,113,473			7,622			0.68			1,251,846			11,244			0.90

Total interest bearing deposits		3,560,983			13,800			0.39			3,531,511			18,500			0.52
Short-term borrowings		180,275			1,483			0.82			152,982			1,475			0.96

Total interest bearing liabilities		3,741,258			15,283			0.41			3,684,493			19,975			0.54

Demand deposits		302,437									278,179
Other liabilities		21,719									19,441
Shareholders' equity		356,979									350,680

Total liabilities and shareholders' equity	$	4,422,393								$	4,332,793

Net interest income , tax equivalent					136,094									135,669

Net interest spread								3.08	%								3.13	%

Net interest margin (net interest income
to total interest earning assets)								3.14	%								3.20	%

Tax equivalent adjustment					(330	)								(681	)


Net interest income					135,764									134,988

Page 12

Non-GAAP Financial Measures Reconciliation

Tangible book value per share and tangible equity as a percentage of tangible assets at period end are non-GAAP financial measures derived from GAAP-based amounts. We calculate tangible equity and tangible assets by excluding the balance of intangible assets from shareholders' equity and total assets, respectively. We calculate tangible book value per share by dividing tangible equity by common shares outstanding, as compared to book value per common share, which we calculate by dividing shareholders' equity by common shares outstanding. We calculate tangible equity as a percentage of tangible assets at period end by dividing tangible equity by tangible assets at period end. We believe that this is consistent with the treatment by bank regulatory agencies, which exclude intangible assets from the calculation of risk-based capital ratios.

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

We believe that these non-GAAP financial measures provide information that is important to investors and that is useful in understanding our financial position, results and ratios. Our management internally assesses our performance based, in part, on these measures. However, these non-GAAP financial measures are supplemental and are not a substitute for an analysis based on GAAP measures. As other companies may use different calculations for these measures, this presentation may not be comparable to other similarly titled measures reported by other companies. A reconciliation of the non-GAAP measures of tangible common equity, tangible book value per share and efficiency ratio to the underlying GAAP numbers is set forth below.

Non-GAAP Financial Measures Reconciliation

(dollars in thousands, except per share amounts)
(Unaudited)
	12/31/13			09/30/13			06/30/13			03/31/13			12/31/12
Tangible Book Value Per Share

Equity	$	361,813			354,388			348,623			360,889			358,798
Less: Intangible assets		553			553			553			553			553
Tangible equity		361,260			353,835			348,070			360,336			358,245

Shares outstanding		94,463			94,334			94,204			94,071			93,935
Tangible book value per share		3.82			3.75			3.69			3.83			3.81
Book value per share		3.83			3.76			3.70			3.84			3.82

Tangible Equity to Tangible Assets
Total Assets		4,521,452			4,459,407			4,443,204			4,411,757			4,346,613
Less: Intangible assets		553			553			553			553			553
Tangible assets		4,520,899			4,458,854			4,442,651			4,411,204			4,346,060

Tangible Equity to Tangible Assets		7.99	%		7.94	%		7.83	%		8.17	%		8.24	%
Equity to Assets		8.00	%		7.95	%		7.85	%		8.18	%		8.25	%

	3 Months Ended															Years Ended
Efficiency Ratio	12/31/13			09/30/13			06/30/13			03/31/13			12/31/12			12/31/13			12/31/12

Net interest income (fully taxable equivalent)	$	34,577			34,180			33,630			33,707			33,718			136,094			135,669
Non-interest income		4,848			4,413			5,916			4,592			6,161			19,770			20,964
Less: Net gain on securities		188			-			1,432			2			763			1,622			2,161
Recurring revenue		39,237			38,593			38,114			38,297			39,116			154,242			154,472

Total Noninterest expense		20,891			20,688			21,869			21,557			21,150			85,005			83,977
Less: Other real estate expense, net		430			946			1,473			749			375			3,598			3,216
Recurring expense		20,461			19,742			20,396			20,808			20,775			81,407			80,761

Efficiency Ratio		52.15	%		51.15	%		53.51	%		54.33	%		53.11	%		52.78	%		52.28	%

Page 13

TRUSTCO BANK CORP N Y - FORM 8-K - EX-99.1 - EXHIBIT 99(A) - January 21, 2014

Attached files

TRUSTCO BANK CORP N Y Reports