Contact:

Robert Leonard Executive Vice President and Chief Risk Officer (518) 381-3693

FOR IMMEDIATE RELEASE:

TrustCo is Pleased to Report Second Quarter 2021 Results;

Net Income up 28% over the Prior Year Quarter and 5.3% Average Residential Loan Growth Year over Year

Glenville, New York –June 21, 2021

TrustCo Bank Corp NY (TrustCo, NASDAQ: TRST) today announced second quarter 2021 net income of $14.4 million or $0.748 diluted earnings per share, compared to net income of $11.3 million or $0.584 diluted earnings per share for the second quarter 2020; and net income of $28.5 million or $1.478 diluted earnings per share for the six months ended June 30, 2021, compared to net income of $24.6 million or $1.272 diluted earnings per share for the six months ended June 30, 2020.  For all periods presented, share and per share information has been adjusted for the 1 for 5 reverse stock split which occurred on May 28, 2021.

Summary

Robert J. McCormick, Chairman, President and Chief Executive Officer noted, “The people who make up the team at Trustco Bank are second to none.  We have a deep and diverse talent pool that enables us to focus on short, medium, and long-term objectives all at the same time.  The financial results announced today demonstrate the success of these multifaceted efforts.  Working our way through and out of the COVID-19 pandemic, we were true to our “Home Town Bank” motto and helped many people in the communities we serve, while simultaneously achieving meaningful shareholder value and return.”

We not only continued without interruption our long history of paying a meaningful dividend, we also won shareholder approval of a reverse stock split that we believe will improve the company’s position in the market by making our stock attractive to a wider audience.  At the same time, we also supported food banks, renewed our commitments to distressed neighborhoods, invested in affordable housing programs, aided educational programs, and encouraged savings initiatives.  We also continued to assist consumer and commercial customers as they worked their way out of the hardships of the past year and are happy to report that virtually all Trustco Bank borrowers who received pandemic relief are making payments as agreed.

Our team is never one to rest on its successes.  Our entire management team, from those leading our branches to the heads of our internal departments, are focused on generating new business by reaching an ever-expanding consumer audience with our industry-leading residential mortgage products and developing new relationships with commercial customers who share our forward-looking and success-oriented vision.  As always, we pursue these objectives with our trademark efficiency.

Details

Average loans were up $158.6 million or 3.8% in the second quarter 2021 over the same period in 2020.  Average residential loans, our primary lending focus, were up $193.9 million, or 5.3%, in the second quarter 2021 over the same period in 2020.  As of June 30, 2021, loans in deferral were not material.  Additionally, the Bank had funded 663 Paycheck Protection Program (“PPP”) loans totaling $46 million in 2020, and an additional 343 loans totaling $23 million in the first half of 2021.  As of June 30, 2021, 526 PPP loans totaling $32 million remain outstanding.  Average deposits were up $507.8 million or 10.8% for the second quarter 2021 over the same period a year earlier.  The increase in deposits was the result of a $701.8 million or 21.2% increase in total average core deposit accounts, which consist of interest bearing and non-interest bearing checking, savings and money market deposits, offset by a decrease in average time deposits of $194.1 million or 13.9%, for the second quarter 2021 over the same period in 2020.  Within the core deposits, checking balances were up $399.5 million or 26.6% (including interest bearing and non-interest bearing checking balances), money market balances were up $87.5 million or 13.6%, and savings balances were up $214.8 million or 18.4%.  We believe the increase in core deposits continues to reflect the desire of customers to have additional funds in the safety and security offered by TrustCo’s long history of conservative banking.  As we move forward, the objective is to encourage customers to retain these additional funds in the expanded product offerings of the Bank through aggressive marketing and product differentiation.

The cost of interest bearing liabilities decreased to 0.17% in the second quarter 2021 from 0.64% in the second quarter 2020.  A significant portion of our CD portfolio (time deposits) repriced during the last year, which resulted in lower rates as a result of the ongoing market conditions. The net interest margin for the second quarter 2021 was 2.70%, down 11 basis points from 2.81% in the second quarter of 2020.  This was primarily due to the decrease in market rates resulting in less interest earned on our short-term funds, residential and variable rate loans.

The Bank continued to demonstrate its ability to grow shareholders’ equity as average equity was up $24.3 million or 4.4% in the second quarter of 2021 compared to the same period in 2020.  Return on average assets and return on average equity for the second quarter 2021 were 0.95% and 10.05%, respectively, compared to 0.82% and 8.21% for the second quarter 2020.  Improving efficiencies to reduce costs continues to remain a key area of focus.  As a result, full time equivalent employees decreased from the prior year and quarter partially due to a strategic realignment and the impact of COVID-19 on the labor market.  The Bank also purchased 20 thousand shares of stock under the announced Repurchase Plan.  Additionally, as previously announced, the reverse split of the Company’s Common Stock at a ratio of 1 for 5 was implemented on the Nasdaq Global Select Market on May 28, 2021.  All prior period share and per share information, and common stock and surplus amounts have been split adjusted.  The board of directors believes that the Reverse Stock Split will likely result in a higher per share trading price, which is intended to generate greater investor interest in TrustCo and improve the marketability of the shares to a broader range of investors. The board of directors also believes that the Reverse Stock Split will result in a number of our shares of outstanding common stock that is similar to the number of outstanding shares of common stock of comparable financial institutions.

Asset quality and loan loss reserve measures have stayed consistent.  Nonperforming loans (NPLs) were $20.8 million at June 30, 2021, compared to $21.9 million at June 30, 2020.  NPLs were 0.48% and 0.52% of total loans at June 30, 2021 and 2020, respectively.  The coverage ratio, or allowance for loan losses to NPLs, was 240.9% at June 30, 2021, compared to 219.5% at June 30, 2020.  Nonperforming assets (NPAs) were $21.1 million at June 30, 2021, compared to $22.8 million at June 30, 2020.  The ratio of allowance for loan losses to total loans was 1.15% as of both June 30, 2021 and 2020.  The allowance for loan losses was $50.2 million at June 30, 2021, compared to $48.1 million at June 30, 2020.  There was no provision for loan losses for the second quarter 2021 consistent with improved asset quality trends and economic conditions. Provision for loan losses for the second quarter of 2020 was $2 million driven by the beginning of the uncertainty in the economic environment resulting from the COVID-19 pandemic.  The Company had previously elected to delay its adoption of Accounting Standards Update 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (“CECL”), as provided by the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) until the date on which the National Emergency concerning COVID-19 was terminated or December 31, 2020, whichever occurred first.  The December 31, 2020 adoption date under the CARES Act was extended to January 1, 2022 as a part of the COVID-19 relief legislation, which became law in December 2020, and therefore the Company intends to adopt CECL on January 1, 2022.

 Net recoveries for the second quarter 2021 were $164 thousand versus net chargeoffs in the second quarter 2020 of $11 thousand.  The annualized net (recoveries) chargeoffs ratio was (0.02)% and 0.00% for the second quarter 2021 and 2020, respectively.

At June 30, 2021 the equity to asset ratio was 9.45%, compared to 9.75% at June 30, 2020.  Book value per share at June 30, 2021 was $30.00, up 4.6% compared to $28.67 a year earlier.

TrustCo Bank Corp NY is a $6.1 billion savings and loan holding company and through its subsidiary, Trustco Bank, operated 147 offices in New York, New Jersey, Vermont, Massachusetts, and Florida at June 30, 2021.

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.

 

 

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.  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 periods. Examples of forward-looking statements include, among others, statements we make regarding our expectations for our performance during 2021, including our expectations regarding the effects of COVID-19 on our financial results and our ability to assist our customers in addressing the effects of COVID-19, our expectations with respect to the effect of our proposed reverse stock split of our common stock, including the impact of such split on the trading price of our common stock, our ability to retain customer products, the impact of Federal Reserve actions regarding interest rates and the growth of loans and deposits throughout our branch network and our ability to capitalize on economic changes in the areas in which we operate.  Such forward-looking statements are subject to factors that could cause actual results to differ materially for TrustCo from those discussed, and many of the risks and uncertainties are heightened by or may, in the future, be heightened by the effects of the COVID-19 pandemic. 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:  the effect of the COVID-19 pandemic on our business, financial condition, liquidity and results of operations; the impact of the actions taken by governmental authorities to contain COVID-19 or address the impact of COVID-19 on the economy, and the effect of all of such items on our operations, liquidity and capital position, and on the financial condition of our borrowers and other customers; future business strategies related to the implementation of CECL; our ability to continue to originate a significant volume of one-to-four family mortgage loans in our market areas; our ability to continue to maintain noninterest expense and other overhead costs at reasonable levels relative to income; our ability to make accurate assumptions and judgments regarding the credit risks associated with lending and investing activities; the effects of, and changes in, trade, monetary and fiscal policies and laws, including interest rate policies of the Federal Reserve Board, inflation, interest rates, market and monetary fluctuations; restrictions or conditions imposed by our regulators on our operations that may make it more difficult for us to achieve our goals; the future earnings and capital levels of us and Trustco Bank and the continued receipt of approvals from our primary federal banking regulators under regulatory rules to distribute capital to TrustCo, which could affect our ability to pay dividends; results of supervisory monitoring or examinations of Trustco Bank and TrustCo by our respective regulators; adverse conditions in the securities markets that lead to impairment in the value of securities in our investment portfolio; unanticipated effects from the Tax Cut and Jobs Act that may limit its benefits or adversely impact our business;  the perceived overall value of our products and services by users, including in comparison to competitors’ products and services and the willingness of current and prospective customers to substitute competitors’ products and services for our products and services; changes in consumer spending, borrowing and saving habits; the effect of changes in financial services laws and regulations and the impact of other governmental initiatives affecting the financial services industry; changes in management personnel; real estate and collateral values; changes in accounting policies and practices, as may be adopted by the bank regulatory agencies, the FASB or PCAOB; disruptions, security breaches, or other adverse events affecting the third-party vendors who perform several of our critical processing functions; technological changes and electronic, cyber and physical security breaches; changes in local market areas and general business and economic trends, as well as changes in consumer spending and saving habits; our success at managing the risks involved in the foregoing and managing our business; and other risks and uncertainties under the heading “Risk Factors” in our most recent annual report on Form 10-K and, if any, in our subsequent quarterly reports on Form 10-Q or other securities filings.

		Three months ended
		6/30/2021				3/31/2021				6/30/2020
Summary of operations
Net interest income (TE)		$	40,122				40,107				37,681
Provision for loan losses			-				350				2,000
Noninterest income			4,688				4,428				3,426
Noninterest expense			25,440				25,335				23,932
Net income			14,433				14,083				11,254
Per share (4)
Net income per share:
- Basic		$	0.749				0.730				0.584
- Diluted			0.748				0.730				0.584
Cash dividends			0.341				0.341				0.341
Book value at period end			30.00				29.60				28.67
Market price at period end			34.38				36.85				31.65
At period end
Full time equivalent employees			769				820				806
Full service banking offices			147				148				148
Performance ratios
Return on average assets			0.95	%			0.96				0.82
Return on average equity			10.05				10.01				8.21
Efficiency (1)			56.91				56.35				58.30
Net interest spread (TE)			2.66				2.74				2.69
Net interest margin (TE)			2.70				2.78				2.81
Dividend payout ratio			45.51				46.65				58.37
Capital ratios at period end
Consolidated tangible equity to tangible assets (2)			9.44	%			9.44				9.74
Consolidated equity to assets			9.45	%			9.44				9.75
Asset quality analysis at period end
Nonperforming loans to total loans			0.48				0.51				0.52
Nonperforming assets to total assets			0.34				0.36				0.40
Allowance for loan losses to total loans			1.15				1.17				1.15
Coverage ratio (3)			2.4	x			2.3	x			2.2	x

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

(2)	Non-GAAP measure; calculated as total equity less $553 of intangible assets divided by total assets less $553 of intangible assets.  See Non-GAAP Financial Measures Reconciliation.

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

(4)	All periods presented have been adjusted for the 1 for 5 reverse stock split which occurred on May 28, 2021.

		Six months ended
		06/30/21				06/30/20
Summary of operations
Net interest income (TE)		$	80,229				76,235
Provision for loan losses			350				4,000
Net gain on securities transactions			-				1,155
Noninterest income, excluding net gain on securities transactions			9,116				7,605
Noninterest expense			50,775				48,200
Net income			28,516				24,567
Per share (2)
Net income per share:
- Basic		$	1.479				1.272
- Diluted			1.478				1.272
Cash dividends			0.681				0.681
Book value at period end			30.00				28.67
Market price at period end			34.38				31.65
Performance ratios
Return on average assets			0.96				0.92
Return on average equity			10.03				9.04
Efficiency (1)			56.63				57.30
Net interest spread (TE)			2.70				2.80
Net interest margin (TE)			2.74				2.93
Dividend payout ratio			46.07				53.52

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

(2)	All periods presented have been adjusted for the 1 for 5 reverse stock split which occurred on May 28, 2021.

		Three months ended
		6/30/2021				3/31/2021				12/31/2020				9/30/2020				6/30/2020
Interest and dividend income:
Interest and fees on loans		$	39,808				40,217				40,906				41,330				41,665
Interest and dividends on securities available for sale:
U. S. government sponsored enterprises			97				50				27				14				106
State and political subdivisions			-				1				2				1				2
Mortgage-backed securities and collateralized mortgage obligations - residential			1,167				1,237				1,172				1,319				1,527
Corporate bonds			323				316				349				646				488
Small Business Administration - guaranteed participation securities			193				206				212				216				229
Other securities			5				6				7				5				5
Total interest and dividends on securities available for sale			1,785				1,816				1,769				2,201				2,357
Interest on held to maturity securities:
Mortgage-backed securities and collateralized mortgage obligations - residential			111				123				129				138				162
Total interest on held to maturity securities			111				123				129				138				162
Federal Reserve Bank and Federal Home Loan Bank stock			65				69				70				77				192
Interest on federal funds sold and other short-term investments			286				270				246				242				193
Total interest income			42,055				42,495				43,120				43,988				44,569
Interest expense:
Interest on deposits:
Interest-bearing checking			46				52				51				55				26
Savings			162				159				156				161				166
Money market deposit accounts			236				283				447				637				862
Time deposits			1,261				1,666				3,053				4,749				5,599
Interest on short-term borrowings			228				228				232				221				235
Total interest expense			1,933				2,388				3,939				5,823				6,888
Net interest income			40,122				40,107				39,181				38,165				37,681
Less: Provision for loan losses			-				350				600				1,000				2,000
Net interest income after provision for loan losses			40,122				39,757				38,581				37,165				35,681
Noninterest income:
Trustco Financial Services income			1,999				2,035				1,527				1,784				1,368
Fees for services to customers			2,486				2,204				2,365				2,292				1,807
Other			203				189				177				265				251
Total noninterest income			4,688				4,428				4,069				4,341				3,426
Noninterest expenses:
Salaries and employee benefits			12,403				12,425				11,727				10,899				11,648
Net occupancy expense			4,328				4,586				4,551				4,277				4,385
Equipment expense			1,600				1,631				1,621				1,607				1,606
Professional services			1,614				1,432				1,644				1,311				1,182
Outsourced services			2,169				2,250				1,925				1,875				1,875
Advertising expense			549				354				527				305				601
FDIC and other insurance			777				707				657				660				609
Other real estate (income) expense, net			(60	)			239				45				(115	)			(32	)
Other			2,060				1,711				2,133				1,855				2,058
Total noninterest expenses			25,440				25,335				24,830				22,674				23,932
Income before taxes			19,370				18,850				17,820				18,832				15,175
Income taxes			4,937				4,767				4,006				4,761				3,921
Net income		$	14,433				14,083				13,814				14,071				11,254
Net income per common share (1):
- Basic		$	0.749				0.730				0.716				0.730				0.584
- Diluted			0.748				0.730				0.716				0.730				0.584
Average basic shares (in thousands) (1)			19,281				19,287				19,287				19,287				19,287
Average diluted shares (in thousands) (1)			19,290				19,293				19,288				19,288				19,287
Note:  Taxable equivalent net interest income		$	40,122				40,107				39,182				38,166				37,681

(1)	All periods presented have been adjusted for the 1 for 5 reverse stock split which occurred on May 28, 2021.

		Six months ended
		06/30/21				06/30/20
Interest and dividend income:
Interest and fees on loans		$	80,025				83,728
Interest and dividends on securities available for sale:
U. S. government sponsored enterprises			147				527
State and political subdivisions			1				3
Mortgage-backed securities and collateralized mortgage obligations - residential			2,404				3,640
Corporate bonds			639				726
Small Business Administration - guaranteed participation securities			399				474
Other securities			11				11
Total interest and dividends on securities available for sale			3,601				5,381
Interest on held to maturity securities:
Mortgage-backed securities-residential			234				337
Total interest on held to maturity securities			234				337
Federal Reserve Bank and Federal Home Loan Bank stock			134				274
Interest on federal funds sold and other short-term investments			556				1,460
Total interest income			84,550				91,180
Interest expense:
Interest on deposits:
Interest-bearing checking			98				42
Savings			321				399
Money market deposit accounts			519				1,958
Time deposits			2,927				11,990
Interest on short-term borrowings			456				557
Total interest expense			4,321				14,946
Net interest income			80,229				76,234
Less: Provision for loan losses			350				4,000
Net interest income after provision for loan losses			79,879				72,234
Noninterest income:
Trustco Financial Services income			4,034				2,968
Fees for services to customers			4,690				4,122
Net gain on securities transactions			-				1,155
Other			392				515
Total noninterest income			9,116				8,760
Noninterest expenses:
Salaries and employee benefits			24,828				23,021
Net occupancy expense			8,914				8,691
Equipment expense			3,231				3,408
Professional services			3,046				2,663
Outsourced services			4,419				3,950
Advertising expense			903				1,089
FDIC and other insurance			1,484				903
Other real estate expense, net			179				162
Other			3,771				4,313
Total noninterest expenses			50,775				48,200
Income before taxes			38,220				32,794
Income taxes			9,704				8,227
Net income		$	28,516				24,567
Net income per common share (1):
- Basic		$	1.479				1.272
- Diluted			1.478				1.272
Average basic shares (in thousands) (1)			19,284				19,316
Average diluted shares (in thousands) (1)			19,292				19,319
Note:  Taxable equivalent net interest income		$	80,229				76,235

(1)	All periods presented have been adjusted for the 1 for 5 reverse stock split which occurred on May 28, 2021.

		6/30/2021				3/31/2021				12/31/2020				9/30/2020				6/30/2020
ASSETS:
Cash and due from banks		$	47,766				45,493				47,196				47,703				44,726
Federal funds sold and other short term investments			1,134,622				1,094,880				1,059,903				908,616				908,110
Total cash and cash equivalents			1,182,388				1,140,373				1,107,099				956,319				952,836
Securities available for sale:
U. S. government sponsored enterprises			74,579				74,465				19,968				29,996				-
States and political subdivisions			48				48				103				111				111
Mortgage-backed securities and collateralized mortgage obligations - residential			315,656				348,317				316,158				309,768				331,469
Small Business Administration - guaranteed participation securities			37,199				39,232				42,217				44,070				45,998
Corporate bonds			54,647				64,839				59,939				70,113				54,439
Other securities			686				686				686				685				685
Total securities available for sale			482,815				527,587				439,071				454,743				432,702
Held to maturity securities:
Mortgage-backed securities and collateralized mortgage obligations-residential			11,665				12,729				13,824				15,094				16,633
Total held to maturity securities			11,665				12,729				13,824				15,094				16,633
Federal Reserve Bank and Federal Home Loan Bank stock			5,604				5,506				5,506				5,506				5,506
Loans:
Commercial			214,164				217,021				212,492				231,663				231,212
Residential mortgage loans			3,892,351				3,807,837				3,780,167				3,724,746				3,681,898
Home equity line of credit			234,214				235,644				242,194				248,320				254,445
Installment loans			8,638				8,670				9,617				9,826				10,006
Loans, net of deferred net costs			4,349,367				4,269,172				4,244,470				4,214,555				4,177,561
Less: Allowance for loan losses			50,155				49,991				49,595				49,123				48,144
Net loans			4,299,212				4,219,181				4,194,875				4,165,432				4,129,417
Bank premises and equipment, net			33,691				34,012				34,412				34,417				34,042
Operating lease right-of-use assets			45,825				46,614				47,885				47,174				48,712
Other assets			61,378				60,455				59,124				57,244				57,155
Total assets		$	6,122,578				6,046,457				5,901,796				5,735,929				5,677,003
LIABILITIES:
Deposits:
Demand		$	765,193				718,343				652,756				635,345				612,960
Interest-bearing checking			1,152,901				1,141,595				1,086,558				1,024,290				1,001,592
Savings accounts			1,409,556				1,362,141				1,285,501				1,235,259				1,191,682
Money market deposit accounts			732,963				719,580				716,005				699,132				666,304
Time deposits			1,169,907				1,231,263				1,296,373				1,305,024				1,392,769
Total deposits			5,230,520				5,172,922				5,037,193				4,899,050				4,865,307
Short-term borrowings			237,791				229,950				214,755				193,455				177,278
Operating lease liabilities			50,586				51,449				52,784				52,125				53,710
Accrued expenses and other liabilities			25,088				21,105				28,903				30,771				27,287
Total liabilities			5,543,985				5,475,426				5,333,635				5,175,401				5,123,582
SHAREHOLDERS' EQUITY:
Capital stock (1)			20,041				20,044				20,041				20,041				20,041
Surplus (1)			256,536				256,674				256,606				256,605				256,601
Undivided profits			329,350				321,486				313,974				306,741				299,239
Accumulated other comprehensive income, net of tax			7,840				7,268				11,936				11,537				11,936
Treasury stock at cost			(35,174	)			(34,441	)			(34,396	)			(34,396	)			(34,396	)
Total shareholders' equity			578,593				571,031				568,161				560,528				553,421
Total liabilities and shareholders' equity		$	6,122,578				6,046,457				5,901,796				5,735,929				5,677,003
Outstanding shares (in thousands) (1)			19,265				19,288				19,287				19,287				19,287

(1)	All periods presented have been adjusted for the 1 for 5 reverse stock split which occurred on May 28, 2021.

		6/30/2021				3/31/2021				12/31/2020				9/30/2020				6/30/2020
Nonperforming Assets
New York and other states*
Loans in nonaccrual status:
Commercial		$	150				125				452				491				571
Real estate mortgage - 1 to 4 family			18,466				19,826				19,379				19,977				20,215
Installment			43				32				43				49				6
Total non-accrual loans			18,659				19,983				19,874				20,517				20,792
Other nonperforming real estate mortgages - 1 to 4 family			20				22				23				25				26
Total nonperforming loans			18,679				20,005				19,897				20,542				20,818
Other real estate owned			251				420				541				423				830
Total nonperforming assets		$	18,930				20,425				20,438				20,965				21,648
Florida
Loans in nonaccrual status:
Commercial		$	-				-				-				-				-
Real estate mortgage - 1 to 4 family			2,142				1,626				1,187				1,254				1,111
Installment			-				-				-				-				-
Total non-accrual loans			2,142				1,626				1,187				1,254				1,111
Other nonperforming real estate mortgages - 1 to 4 family			-				-				-				-				-
Total nonperforming loans			2,142				1,626				1,187				1,254				1,111
Other real estate owned			-				-				-				-				-
Total nonperforming assets		$	2,142				1,626				1,187				1,254				1,111
Total
Loans in nonaccrual status:
Commercial		$	150				125				452				491				571
Real estate mortgage - 1 to 4 family			20,608				21,452				20,566				21,231				21,326
Installment			43				32				43				49				6
Total non-accrual loans			20,801				21,609				21,061				21,771				21,903
Other nonperforming real estate mortgages - 1 to 4 family			20				22				23				25				26
Total nonperforming loans			20,821				21,631				21,084				21,796				21,929
Other real estate owned			251				420				541				423				830
Total nonperforming assets		$	21,072				22,051				21,625				22,219				22,759
Quarterly Net (Recoveries) Chargeoffs
New York and other states*
Commercial		$	-				(32	)			32				(1	)			(6	)
Real estate mortgage - 1 to 4 family			(136	)			(2	)			(27	)			4				(27	)
Installment			(27	)			(14	)			109				18				44
Total net (recoveries) chargeoffs		$	(163	)			(48	)			114				21				11
Florida
Commercial		$	-				-				-				-				-
Real estate mortgage - 1 to 4 family			(1	)			-				(1	)			-				-
Installment			-				2				15				-				-
Total net (recoveries) chargeoffs		$	(1	)			2				14				-				-
Total
Commercial		$	-				(32	)			32				(1	)			(6	)
Real estate mortgage - 1 to 4 family			(137	)			(2	)			(28	)			4				(27	)
Installment			(27	)			(12	)			124				18				44
Total net (recoveries) chargeoffs		$	(164	)			(46	)			128				21				11
Asset Quality Ratios
Total nonperforming loans (1)		$	20,821				21,631				21,084				21,796				21,929
Total nonperforming assets (1)			21,072				22,051				21,625				22,219				22,759
Total net (recoveries) chargeoffs (2)			(164	)			(46	)			128				21				11
Allowance for loan losses (1)			50,155				49,991				49,595				49,123				48,144
Nonperforming loans to total loans			0.48	%			0.51	%			0.50	%			0.52	%			0.52	%
Nonperforming assets to total assets			0.34	%			0.36	%			0.37	%			0.39	%			0.40	%
Allowance for loan losses to total loans			1.15	%			1.17	%			1.17	%			1.17	%			1.15	%
Coverage ratio (1)			240.9	%			231.1	%			235.2	%			225.4	%			219.5	%
Annualized net (recoveries) chargeoffs to average loans (2)			-0.02	%			0.00	%			0.01	%			0.00	%			0.00	%
Allowance for loan losses to annualized net (recoveries) chargeoffs (2)			N/A				N/A				96.9	x			584.8	x			1094.2	x