10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF

THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2016 Commission File Number 0-10592

TRUSTCO BANK CORP NY

(Exact name of registrant as specified in its charter)

NEW YORK	14‑1630287
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

5 SARNOWSKI DRIVE, GLENVILLE, NEW YORK	12302
(Address of principal executive offices)	(Zip Code)
Registrant's telephone number, including area code:	(518) 377‑3311

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  ☒Yes    ☐ No

Indicate  by check mark whether the registrant has submitted electronically and  posted  on  its  corporate  Web  site,  if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (232.405  of  this  chapter)  during the preceding 12 months (or for such shorter period  that  the  registrant  was  required  to  submit  and  post  such files).  ☒Yes    ☐ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.  See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.  (Check one):

Large accelerated filer ☐	Accelerated filer ☒	Non-accelerated filer ☐
Smaller reporting company ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).          ☐Yes   ☒ No

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

Common Stock	Number of Shares Outstanding as of July 31, 2016
$1 Par Value	95,599,646

TrustCo Bank Corp NY

INDEX

Part I.		FINANCIAL INFORMATION	PAGE NO.
	Item 1.	Consolidated Interim Financial Statements (Unaudited):
		Consolidated Statements of Income for the three month and six month periods ended June 30, 2016 and 2015	3
		Consolidated Statements of Comprehensive Income for the three month and six month periods ended June 30, 2016 and 2015	4
		Consolidated Statements of Financial Condition as of June 30, 2016 and December 31, 2015	5
		Consolidated Statements of Changes in Shareholders’ Equity for the six month periods ended June 30, 2016 and 2015	6
		Consolidated Statements of Cash Flows for the six month periods ended June 30, 2016 and 2015	7
		Notes to Consolidated Interim Financial Statements	8 – 35
		Report of Independent Registered Public Accounting Firm	36
	Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	37-57
	Item 3.	Quantitative and Qualitative Disclosures About Market Risk	58
	Item 4.	Controls and Procedures	58
Part II.		OTHER INFORMATION
	Item 1.	Legal Proceedings	59
	Item 1A.	Risk Factors	59
	Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	59
	Item 3.	Defaults Upon Senior Securities	59
	Item 4.	Mine Safety	59
	Item 5.	Other Information	59
	Item 6.	Exhibits	59

2

TRUSTCO BANK CORP NY

Consolidated Statements of Income (Unaudited)

(dollars in thousands, except per share data)

	Three Months Ended June 30,				Six Months Ended June 30,
	2016		2015		2016		2015
Interest and dividend income:
Interest and fees on loans	$	35,652		35,343		71,257		70,326
Interest and dividends on securities available for sale:
U. S. government sponsored enterprises		404		366		659		578
State and political subdivisions		13		23		27		48
Mortgage-backed securities and collateralized mortgage obligations-residential		2,169		2,276		4,285		4,669
Corporate bonds		-		-		-		1
Small Business Administration-guaranteed participation securities		450		503		926		1,025
Mortgage-backed securities and collateralized mortgage obligations-commercial		38		38		74		75
Other securities		4		4		8		8
Total interest and dividends on securities available for sale		3,078		3,210		5,979		6,404
Interest on held to maturity securities:
Mortgage-backed securities and collateralized mortgage obligations-residential		374		480		775		958
Corporate bonds		154		154		308		308
Total interest on held to maturity securities		528		634		1,083		1,266
Federal Reserve Bank and Federal Home Loan Bank stock		118		118		238		234
Interest on federal funds sold and other short-term investments		832		423		1,677		823
Total interest income		40,208		39,728		80,234		79,053
Interest expense:
Interest on deposits:
Interest-bearing checking		116		111		230		216
Savings		604		599		1,208		1,257
Money market deposit accounts		467		547		962		1,164
Time deposits		2,460		2,500		4,833		4,934
Interest on short-term borrowings		262		300		519		646
Total interest expense		3,909		4,057		7,752		8,217
Net interest income		36,299		35,671		72,482		70,836
Provision for loan losses		800		800		1,600		1,600
Net interest income after provision for loan losses		35,499		34,871		70,882		69,236
Noninterest income:
Trustco financial services income		1,512		1,478		3,117		3,131
Fees for services to customers		2,737		2,691		5,398		5,215
Net gain on securities transactions		668		-		668		249
Other		282		285		588		482
Total noninterest income		5,199		4,454		9,771		9,077
Noninterest expenses:
Salaries and employee benefits		8,934		8,164		17,937		16,645
Net occupancy expense		3,918		3,878		8,006		7,986
Equipment expense		1,840		1,803		3,354		3,745
Professional services		2,098		2,066		4,244		3,573
Outsourced services		1,425		1,425		2,976		2,850
Advertising expense		570		733		1,299		1,333
FDIC and other insurance		1,949		1,017		3,939		2,082
Other real estate expense, net		423		201		942		625
Other		2,817		2,844		4,715		5,149
Total noninterest expenses		23,974		22,131		47,412		43,988
Income before taxes		16,724		17,194		33,241		34,325
Income taxes		6,260		6,467		12,366		12,883
Net income	$	10,464		10,727		20,875		21,442
Net income per share:
- Basic	$	0.110		0.113		0.219		0.226
- Diluted	$	0.109		0.113		0.219		0.225

See accompanying notes to unaudited consolidated interim financial statements.

3

TRUSTCO BANK CORP NY

Consolidated Statements of Comprehensive Income (Unaudited)

(dollars in thousands)

	Three Months Ended June 30,						Six Months Ended June 30,
	2016			2015			2016			2015
Net income	$	10,464			10,727			20,875			21,442
Net unrealized holding gain (loss) on securities available for sale		4,565			(5,482	)		12,600			(2,173	)
Reclassification adjustments for net gain recognized in income		(668	)		-			(668	)		(249	)
Tax effect		(1,559	)		2,193			(4,773	)		971
Net unrealized gain (loss) on securities available for sale, net of tax		2,338			(3,289	)		7,159			(1,451	)
Amortization of net actuarial loss (gain)		(50	)		15			(17	)		10
Amortization of prior service cost (credit)		22			67			45			45
Tax effect		12			(33	)		(11	)		(22	)
Amortization of net actuarial loss (gain) and prior service cost (credit) on pension and postretirement plans, net of tax		(16	)		49			17			33
Other comprehensive income (loss), net of tax		2,322			(3,240	)		7,176			(1,418	)
Comprehensive income	$	12,786			7,487			28,051			20,024

See accompanying notes to unaudited consolidated interim financial statements.

4

TRUSTCO BANK CORP NY

Consolidated Statements of Financial Condition

(dollars in thousands)

	June 30, 2016			December 31, 2015
ASSETS:	(Unaudited)			(Audited)
Cash and due from banks	$	39,787			41,698
Federal funds sold and other short term investments		718,609			676,458
Total cash and cash equivalents		758,396			718,156
Securities available for sale		620,506			601,037
Held to maturity securities (fair value 2016 $53,890; 2015 $59,439)		50,684			56,465
Federal Reserve Bank and Federal Home Loan Bank stock		9,579			9,480
Loans, net of deferred fees and costs		3,343,194			3,293,304
Less:
Allowance for loan losses		44,064			44,762
Net loans		3,299,130			3,248,542
Bank premises and equipment, net		36,793			37,643
Other assets		55,825			63,669
Total assets	$	4,830,913			4,734,992
LIABILITIES:
Deposits:
Demand	$	376,669			365,081
Interest-bearing checking		766,322			754,347
Savings accounts		1,282,006			1,262,194
Money market deposit accounts		577,063			610,826
Time deposits		1,178,567			1,107,930
Total deposits		4,180,627			4,100,378
Short-term borrowings		190,542			191,226
Accrued expenses and other liabilities		29,479			30,078
Total liabilities	$	4,400,648			4,321,682
SHAREHOLDERS' EQUITY:
Capital stock par value $1; 150,000,000 shares authorized; 99,071,052 and 98,973,452 shares issued at June 30, 2016 and December 31, 2015, respectively		99,071			98,973
Surplus		171,174			171,443
Undivided profits		192,356			184,009
Accumulated other comprehensive income (loss), net of tax		2,395			(4,781	)
Treasury stock at cost - 3,578,249 and  3,711,228 shares at  June 30, 2016 and December 31, 2015, respectively		(34,731	)		(36,334	)
Total shareholders' equity		430,265			413,310
Total liabilities and shareholders' equity	$	4,830,913			4,734,992

See accompanying notes to unaudited consolidated interim financial statements.

5

TRUSTCO BANK CORP NY

Consolidated Statements of Changes in Shareholders' Equity (Unaudited)

(dollars in thousands, except per share data)

	Capital Stock		Surplus			Undivided Profits			Accumulated Other Comprehensive (Loss) Income			Treasury Stock			Total
Beginning balance, January 1, 2015	$	98,945		172,353			166,745			(4,509	)		(40,090	)		393,444
Net income		-		-			21,442			-			-			21,442
Other comprehensive loss, net of tax		-		-			-			(1,418	)		-			(1,418	)
Cash dividend declared, $.1312 per share		-		-			(12,466	)		-			-			(12,466	)
Stock options exercised and related tax benefits (19,429 shares)		19		80			-			-			-			99
Purchase of treasury stock (14,881 shares)		-		-			-			-			(99	)		(99	)
Sale of treasury stock (194,139 shares)		-		(541	)		-			-			1,902			1,361
Stock based compensation expense		-		96			-			-			-			96
Ending balance, June 30, 2015	$	98,964		171,988			175,721			(5,927	)		(38,287	)		402,459
Beginning balance, January 1, 2016	$	98,973		171,443			184,009			(4,781	)		(36,334	)		413,310
Net income		-		-			20,875			-			-			20,875
Other comprehensive income, net of tax		-		-			-			7,176			-			7,176
Cash dividend declared, $.1312 per share		-		-			(12,528	)		-			-			(12,528	)
Stock options exercised and related tax benefits (97,600 shares)		98		404			-			-			-			502
Purchase of treasury stock (80,769 shares)		-		-			-			-			(489	)		(489	)
Sale of treasury stock (213,748 shares)		-		(785	)		-			-			2,092			1,307
Stock based compensation expense		-		112			-			-			-			112
Ending balance, June 30, 2016	$	99,071		171,174			192,356			2,395			(34,731	)		430,265

See accompanying notes to unaudited consolidated interim financial statements.

6

TRUSTCO BANK CORP NY

Consolidated Statements of Cash Flows (Unaudited)

(dollars in thousands)

	Six months ended June 30,
	2016			2015
Cash flows from operating activities:
Net income	$	20,875			21,442
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		2,071			2,331
Net gain on sale of other real estate owned		(363	)		(302	)
Writedown of other real estate owned		606			350
Provision for loan losses		1,600			1,600
Deferred tax expense		1,211			167
Net amortization of securities		2,453			2,912
Stock based compensation expense		112			96
Net gain on sale of bank premises and equipment		(62	)		-
Net gain on sales and calls of securities		(668	)		(249	)
Decrease in taxes receivable		1,996			1,815
Increase in interest receivable		(442	)		(7	)
Increase (decrease) in interest payable		17			(33	)
Increase in other assets		(1,530	)		(405	)
(Decrease) increase in accrued expenses and other liabilities		(631	)		1,072
Total adjustments		6,370			9,347
Net cash provided by operating activities		27,245			30,789
Cash flows from investing activities:
Proceeds from sales and calls of securities available for sale		134,550			78,604
Proceeds from calls and maturities of held to maturity securities		5,781			7,403
Purchases of securities available for sale		(144,422	)		(98,092	)
Proceeds from maturities of securities available for sale		550			1,499
Purchases of Federal Reserve Bank and Federal Home Loan Bank stock		(99	)		(252	)
Net increase in loans		(54,636	)		(90,557	)
Proceeds from dispositions of other real estate owned		4,058			3,870
Proceeds from dispositions of bank premises and equipment		58			66
Purchases of bank premises and equipment		(1,217	)		(1,932	)
Net cash used in investing activities		(55,377	)		(99,391	)
Cash flows from financing activities:
Net increase in deposits		80,249			105,200
Net decrease in short-term borrowings		(684	)		(18,366	)
Proceeds from exercise of stock options and related tax benefits		502			99
Proceeds from sale of treasury stock		1,307			1,361
Purchases of treasury stock		(489	)		(99	)
Dividends paid		(12,513	)		(12,456	)
Net cash provided by financing activities		68,372			75,739
Net increase in cash and cash equivalents		40,240			7,137
Cash and cash equivalents at beginning of period		718,156			671,448
Cash and cash equivalents at end of period	$	758,396			678,585
Supplemental Disclosure of Cash Flow Information:
Cash paid during the year for:
Interest paid	$	7,735			8,250
Income taxes paid		10,485			11,059
Other non cash items:
Transfer of loans to other real estate owned		2,448			3,585
Increase in dividends payable		15			10
Change in unrealized gain on securities available for sale-gross of deferred taxes		11,932			(2,422	)
Change in deferred tax effect on unrealized gain on securities available for sale		(4,773	)		971
Amortization of net actuarial loss and prior service credit on pension and postretirement plans		28			55
Change in deferred tax effect of amortization of net actuarial
loss and prior service credit		(11	)		(22	)

See accompanying notes to unaudited consolidated interim financial statements.

7

(1) Financial Statement Presentation

The unaudited Consolidated Interim Financial Statements of TrustCo Bank Corp NY (the “Company” or “TrustCo”) include the accounts of the subsidiaries after elimination of all significant intercompany accounts and transactions.  Prior period amounts are reclassified when necessary to conform to the current period presentation.  The net income reported for the three months and six months ended June 30, 2016 is not necessarily indicative of the results that may be expected for the year ending December 31, 2016, or any interim periods.  These financial statements consider events that occurred through the date of filing.

In the opinion of the management of the Company, the accompanying unaudited Consolidated Interim Financial Statements contain all recurring adjustments necessary to present fairly the financial position as of June 30, 2016, the results of operations and cash flows for the three months and six months ended June 30, 2016 and 2015.  The accompanying Consolidated Interim Financial Statements should be read in conjunction with the Company’s year-end Consolidated Financial Statements, including notes thereto, which are included in the Company's 2015 Annual Report on Form 10-K for the year ended December 31, 2015.  The accompanying consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and, therefore, do not include all information and notes necessary for a complete presentation of financial position, results of operations and cash flow activity required in accordance with accounting principles generally accepted in the United States.

(2) Earnings Per Share

The Company computes earnings per share in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 260, Earnings Per Share (“ASC 260”).   A reconciliation of the component parts of earnings per share for the three months and six months ended June 30, 2016 and 2015 is as follows:

(in thousands, except per share data)	For the three months ended June 30:				For the six months ended June 30:
	2016		2015		2016		2015
Net income	$	10,464		10,727	$	20,875		21,442
Weighted average common shares		95,487		95,056		95,426		95,002
Stock Options		93		134		70		130
Weighted average common shares including potential dilutive shares		95,580		95,190		95,496		95,132
Basic EPS	$	0.110		0.113	$	0.219		0.226
Diluted EPS	$	0.109		0.113	$	0.219		0.225

For the three months and six months ended June 30, 2016, the weighted average number of antidilutive stock options excluded from diluted earnings per share was approximately 1.6 million.  For the three and six months ended June 30, 2015 the weighted average number of antidilutive stock options excluded from diluted earnings per share was approximately 1.4 million.  The stock options are antidilutive because the strike price is greater than the average fair value of the Company’s common stock for the periods presented.

8

(3) Benefit Plans

The table below outlines the components of the Company's net periodic benefit recognized during the three months and six months ended June 30, 2016 and 2015 for its pension and other postretirement benefit plans:

	For the three months ended June 30,
	Pension Benefits						Other Postretirement Benefits
(dollars in thousands)	2016			2015			2016			2015
Service cost	$	16			15			32			39
Interest cost		349			330			61			64
Expected return on plan assets		(681	)		(684	)		(180	)		(180	)
Amortization of net (gain) loss		5			121			(55	)		(106	)
Amortization of prior service cost		-			-			22			67
Net periodic benefit	$	(311	)		(218	)		(120	)		(116	)

	For the six months ended June 30,
	Pension Benefits						Other Postretirement Benefits
(dollars in thousands)	2016			2015			2016			2015
Service cost	$	31			30			64			78
Interest cost		686			660			123			129
Expected return on plan assets		(1,325	)		(1,368	)		(360	)		(361	)
Amortization of net loss (gain)		92			81			(109	)		(71	)
Amortization of prior service cost		-			-			45			45
Net periodic benefit	$	(516	)		(597	)		(237	)		(180	)

The Company does not expect to make contributions to its pension and postretirement benefit plans in 2016.  As of June 30, 2016, no contributions have been made, however, this decision is reviewed each quarter and is subject to change based upon market conditions.

Since 2003, the Company has not subsidized retiree medical insurance premiums.  However, it continues to provide postretirement medical benefits to a limited number of current and retired executives in accordance with the terms of their employment contracts.

9

(4) Investment Securities

(a) Securities available for sale

The amortized cost and fair value of the securities available for sale are as follows:

(dollars in thousands)	June 30, 2016
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
U.S. government sponsored enterprises	$	116,505		90		-		116,595
State and political subdivisions		955		19		-		974
Mortgage backed securities and collateralized mortgage obligations - residential		400,527		3,625		14		404,138
Small Business Administration- guaranteed participation securities		87,102		710		72		87,740
Mortgage backed securities and collateralized mortgage obligations - commercial		10,284		90		-		10,374
Other		650		-		-		650
Total debt securities		616,023		4,534		86		620,471
Equity securities		35		-		-		35
Total securities available for sale	$	616,058		4,534		86		620,506

(dollars in thousands)	December 31, 2015
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
U.S. government sponsored enterprises	$	86,899		19		181		86,737
State and political subdivisions		1,270		20		-		1,290
Mortgage backed securities and collateralized mortgage obligations - residential		416,625		430		5,326		411,729
Small Business Administration- guaranteed participation securities		92,620		-		2,204		90,416
Mortgage backed securities and collateralized mortgage obligations - commercial		10,422		-		242		10,180
Other		650		-		-		650
Total debt securities		608,486		469		7,953		601,002
Equity securities		35		-		-		35
Total securities available for sale	$	608,521		469		7,953		601,037

10

The following table distributes the debt securities included in the available for sale portfolio as of June 30, 2016, based on the securities’ final maturity.   Actual maturities may differ because of securities prepayments and the right of certain issuers to call or prepay their obligations without penalty.  Securities not due at a single maturity date are presented separately:

(dollars in thousands)	Amortized Cost		Fair Value
Due in one year or less	$	1,407		1,408
Due in one year through five years		76,137		76,219
Due after five years through ten years		40,557		40,583
Due after ten years		9		9
Mortgage backed securities and collateralized mortgage obligations - residential		400,527		404,138
Small Business Administration- guaranteed participation securities		87,102		87,740
Mortgage backed securities and collateralized mortgage obligations - commercial		10,284		10,374
	$	616,023		620,471

11

Gross unrealized losses on securities available for sale and the related fair values aggregated by the length of time that individual securities have been in an unrealized loss position, were as follows:

(dollars in thousands)	June 30, 2016
	Less than 12 months				12 months or more				Total
	Fair Value		Gross Unreal. Loss		Fair Value		Gross Unreal. Loss		Fair Value		Gross Unreal. Loss
Mortgage backed securities and collateralized mortgage obligations - residential		-		-		15,203		14		15,203		14
Small Business Administration- guaranteed participation securities		-		-		15,376		72		15,376		72
Total	$	-		-		30,579		86		30,579		86

(dollars in thousands)	December 31, 2015
	Less than 12 months				12 months or more				Total
	Fair Value		Gross Unreal. Loss		Fair Value		Gross Unreal. Loss		Fair Value		Gross Unreal. Loss
U.S. government sponsored enterprises	$	41,786		113		9,932		68		51,718		181
Mortgage backed securities and collateralized mortgage obligations - residential		187,605		2,147		167,549		3,179		355,153		5,326
Small Business Administration- guaranteed participation securities		7,529		111		82,888		2,093		90,417		2,204
Mortgage backed securities and collateralized mortgage obligations - commercial		5,553		130		4,627		112		10,180		242
Total	$	242,473		2,501		264,996		5,452		507,468		7,953

12

The proceeds from sales and calls of securities available for sale, gross realized gains and gross realized losses from sales and calls during the three months and six months ended June 30, 2016 and 2015 are as follows:

(dollars in thousands)	Three months ended June 30,
	2016		2015
Proceeds from sales	$	44,829		-
Proceeds from calls		40,808		27,499
Gross realized gains		668		-
Gross realized losses		-		-

(dollars in thousands)	Six months ended June 30,
	2016		2015
Proceeds from sales	$	44,829		22,945
Proceeds from calls		89,721		55,659
Gross realized gains		668		249
Gross realized losses		-		-

For the three and six months ended June 30, 2016, income tax expense recognized on net gains on sales of securities available for sale was approximately $267 thousand.  For the six months ended June 30, 2015, income tax expense recognized on net gains on sales of securities available for sale was approximately $100 thousand.  There were no sales of securities available for sale during the three months ended June 30, 2015.

(b) Held to maturity securities

The amortized cost and fair value of the held to maturity securities are as follows:

(dollars in thousands)	June 30, 2016
	Amortized Cost		Gross Unrecognized Gains		Gross Unrecognized Losses		Fair Value
Mortgage backed securities and collateralized mortgage obligations - residential	$	40,702		2,676		-		43,378
Corporate bonds		9,982		530		-		10,512
Total held to maturity	$	50,684		3,206		-		53,890

(dollars in thousands)	December 31, 2015
	Amortized Cost		Gross Unrecognized Gains		Gross Unrecognized Losses		Fair Value
Mortgage backed securities and collateralized mortgage obligations - residential	$	46,490		2,308		-		48,798
Corporate bonds		9,975		666		-		10,641
Total held to maturity	$	56,465		2,974		-		59,439

13

The following table distributes the debt securities included in the held to maturity portfolio as of June 30, 2016, based on the securities’ final maturity.   Actual maturities may differ because of securities prepayments and the right of certain issuers to call or prepay their obligations without penalty.  Securities not due at a single maturity date are presented separately:

(dollars in thousands)	Amortized Cost		Fair Value
Due in one year through five years	$	9,982		10,512
Mortgage backed securities and collateralized mortgage obligations - residential		40,702		43,378
	$	50,684		53,890

There were no held to maturity securities in an unrecognized loss position as of June 30, 2016 or December 31, 2015.

There were no sales or transfers of held to maturity securities during the three months and six months ended June 30, 2016 and 2015.

(c) Other-Than-Temporary Impairment

Management evaluates securities for other-than-temporary impairment (“OTTI”) at least on a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. The investment securities portfolio is evaluated for OTTI by segregating the portfolio by type and applying the appropriate OTTI model. Investment securities classified as available for sale or held to maturity are generally evaluated for OTTI under ASC 320 “Investments – Debt and Equity Securities.”

In determining OTTI under the FASB ASC 320 model, management considers many factors, including: (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near-term prospects of the issuer, (3) whether the market decline was affected by macroeconomic conditions, and (4) whether the Company has the intent to sell the debt security or more likely than not will be required to sell the debt security before its anticipated recovery. The assessment of whether any other-than-temporary decline exists involves a high degree of subjectivity and judgment and is based on the information available to management at a point in time.

When OTTI occurs, the amount of the OTTI recognized in earnings depends on whether management intends to sell the security or it is more likely than not it will be required to sell the security before recovery of its amortized cost basis. If management intends to sell or it is more likely than not it will be required to sell the security before recovery of its amortized cost basis, the OTTI shall be recognized in earnings equal to the entire difference between the investment’s amortized cost basis and its fair value at the balance sheet date. If management does not intend to sell the security and it is not more likely than not that the entity will be required to sell the security before recovery of its amortized cost basis, the OTTI on debt securities shall be separated into the amount representing the credit loss and the amount related to all other factors. The amount of the total OTTI related to the credit loss is determined based on the present value of cash flows expected to be collected and is recognized in earnings. The amount of the total OTTI related to other factors is recognized in other comprehensive income, net of applicable taxes. The previous amortized cost basis less the OTTI recognized in earnings becomes the new amortized cost basis of the investment.

As of June 30, 2016, the Company’s security portfolio included certain securities which were in an unrealized loss position.  The declines in fair value are attributable to changes in interest rates, and not credit quality, and because the Company does not have the intent to sell these securities and it is likely that it will not be required to sell the securities before their anticipated recovery, the Company does not consider these securities to be other-than-temporarily impaired at June 30, 2016.

14

(5) Loans and Allowance for Loan Losses

The following table presents the recorded investment in loans by loan class:

	June 30, 2016
(dollars in thousands)	New York and other states*		Florida		Total
Commercial:
Commercial real estate	$	158,150		14,272		172,422
Other		23,196		80		23,276
Real estate mortgage - 1 to 4 family:
First mortgages		2,116,506		603,612		2,720,118
Home equity loans		56,580		10,253		66,833
Home equity lines of credit		300,952		51,117		352,069
Installment		6,893		1,583		8,476
Total loans, net	$	2,662,277		680,917		3,343,194
Less: Allowance for loan losses						44,064
Net loans					$	3,299,130

	December 31, 2015
(dollars in thousands)	New York and other states*		Florida		Total
Commercial:
Commercial real estate	$	160,965		14,908		175,873
Other		27,449		93		27,542
Real estate mortgage - 1 to 4 family:
First mortgages		2,093,957		566,715		2,660,672
Home equity loans		52,251		8,250		60,501
Home equity lines of credit		308,165		51,160		359,325
Installment		8,000		1,391		9,391
Total loans, net	$	2,650,787		642,517		3,293,304
Less: Allowance for loan losses						44,762
Net loans					$	3,248,542

*Includes New York, New Jersey, Vermont and Massachusetts

At June 30, 2016 and December 31, 2015, the Company had approximately $22.8 million and $26.6 million of real estate construction loans, respectively.  Of the $22.8 million in real estate construction loans at June 30, 2016, approximately $13.4 million are secured by second mortgages to residential borrowers while approximately $9.4 million were to commercial borrowers for residential construction projects. Of the $26.6 million in real estate construction loans at December 31, 2015, approximately $16.0 million are secured by second mortgages to residential borrowers while approximately $10.6 million were to commercial borrowers for residential construction projects. The vast majority of construction loans are in the Company’s New York market.

TrustCo lends in the geographic territory of its branch locations in New York, Florida, Massachusetts, New Jersey and Vermont. Although the loan portfolio is diversified, a portion of its debtors’ ability to repay depends significantly on the economic conditions prevailing in the respective geographic territory.

15

The following table presents the recorded investment in non-accrual loans by loan class:

	June 30, 2016
(dollars in thousands)	New York and other states		Florida		Total
Loans in non-accrual status:
Commercial:
Commercial real estate	$	2,690		-		2,690
Real estate mortgage - 1 to 4 family:
First mortgages		20,287		1,557		21,844
Home equity loans		86		46		132
Home equity lines of credit		3,186		297		3,483
Installment		49		-		49
Total non-accrual loans		26,298		1,900		28,198
Restructured real estate mortgages - 1 to 4 family		45		-		45
Total nonperforming loans	$	26,343		1,900		28,243

	December 31, 2015
(dollars in thousands)	New York and other states		Florida		Total
Loans in non-accrual status:
Commercial:
Commercial real estate	$	3,024		-		3,024
Other		-		-		-
Real estate mortgage - 1 to 4 family:
First mortgages		19,488		1,488		20,976
Home equity loans		212		-		212
Home equity lines of credit		3,573		329		3,902
Installment		90		8		98
Total non-accrual loans		26,387		1,825		28,212
Restructured real estate mortgages - 1 to 4 family		48		-		48
Total nonperforming loans	$	26,435		1,825		28,260

The Company transfers loans to other real estate owned, at fair value less cost to sell, in the period the Company obtains physical possession of the property (through legal title or through a deed in lieu). As of June 30, 2016 and December 31, 2015, other estate owned included $3.9 million and $5.4 million of residential foreclosed properties, respectively. In addition, non-accrual residential mortgage loans that are in the process of foreclosure had a recorded investment of $13.7 million and $13.2 million as of June 30, 2016 and December 31, 2015, respectively.

16

The following tables present the aging of the recorded investment in past due loans by loan class and by region as of June 30, 2016 and December 31, 2015:

The following table presents the aging of the recorded investment in past due loans by loan class and by region:

New York and other states:
	June 30, 2016
(dollars in thousands)	30-59 Days Past Due		60-89 Days Past Due		90 + Days Past Due		Total 30+ days Past Due		Current		Total Loans
Commercial:
Commercial real estate	$	580		104		2,060		2,744		155,406		158,150
Other		-		-		-		-		23,196		23,196
Real estate mortgage - 1 to 4 family:
First mortgages		1,896		1,678		12,391		15,965		2,100,541		2,116,506
Home equity loans		109		2		65		176		56,404		56,580
Home equity lines of credit		392		91		1,482		1,965		298,987		300,952
Installment		19		30		45		94		6,799		6,893
Total	$	2,996		1,905		16,043		20,944		2,641,333		2,662,277

Florida:

(dollars in thousands)	30-59 Days Past Due		60-89 Days Past Due		90 + Days Past Due		Total 30+ days Past Due		Current		Total Loans
Commercial:
Commercial real estate	$	-		-		-		-		14,272		14,272
Other		-		-		-		-		80		80
Real estate mortgage - 1 to 4 family:
First mortgages		525		168		1,136		1,829		601,783		603,612
Home equity loans		-		-		-		-		10,253		10,253
Home equity lines of credit		113		50		180		343		50,774		51,117
Installment		1		3		-		4		1,579		1,583
Total	$	639		221		1,316		2,176		678,741		680,917

Total:

(dollars in thousands)	30-59 Days Past Due		60-89 Days Past Due		90 + Days Past Due		Total 30+ days Past Due		Current		Total Loans
Commercial:
Commercial real estate	$	580		104		2,060		2,744		169,678		172,422
Other		-		-		-		-		23,276		23,276
Real estate mortgage - 1 to 4 family:
First mortgages		2,421		1,846		13,527		17,794		2,702,324		2,720,118
Home equity loans		109		2		65		176		66,657		66,833
Home equity lines of credit		505		141		1,662		2,308		349,761		352,069
Installment		20		33		45		98		8,378		8,476
Total	$	3,635		2,126		17,359		23,120		3,320,074		3,343,194

17

New York and other states:
	December 31, 2015
(dollars in thousands)	30-59 Days Past Due		60-89 Days Past Due		90 + Days Past Due		Total 30+ days Past Due		Current		Total Loans
Commercial:
Commercial real estate	$	-		-		2,340		2,340		158,625		160,965
Other		-		-		-		-		27,449		27,449
Real estate mortgage - 1 to 4 family:
First mortgages		4,321		2,037		12,529		18,887		2,075,070		2,093,957
Home equity loans		43		-		149		192		52,059		52,251
Home equity lines of credit		572		204		1,418		2,194		305,971		308,165
Installment		34		19		88		141		7,859		8,000
Total	$	4,970		2,260		16,524		23,754		2,627,033		2,650,787

Florida:

(dollars in thousands)	30-59 Days Past Due		60-89 Days Past Due		90 + Days Past Due		Total 30+ days Past Due		Current		Total Loans
Commercial:
Commercial real estate	$	10		-		-		10		14,898		14,908
Other		-		-		-		-		93		93
Real estate mortgage - 1 to 4 family:
First mortgages		665		271		851		1,787		564,928		566,715
Home equity loans		-		-		-		-		8,250		8,250
Home equity lines of credit		159		-		240		399		50,761		51,160
Installment		1		21		-		22		1,369		1,391
Total	$	835		292		1,091		2,218		640,299		642,517

Total:

(dollars in thousands)	30-59 Days Past Due		60-89 Days Past Due		90 + Days Past Due		Total 30+ days Past Due		Current		Total Loans
Commercial:
Commercial real estate	$	10		-		2,340		2,350		173,523		175,873
Other		-		-		-		-		27,542		27,542
Real estate mortgage - 1 to 4 family:
First mortgages		4,986		2,308		13,380		20,674		2,639,998		2,660,672
Home equity loans		43		-		149		192		60,309		60,501
Home equity lines of credit		731		204		1,658		2,593		356,732		359,325
Installment		35		40		88		163		9,228		9,391
Total	$	5,805		2,552		17,615		25,972		3,267,332		3,293,304

At June 30, 2016 and December 31, 2015, there were no loans that were 90 days past due and still accruing interest. As a result, non-accrual loans include all loans 90 days or more past due as well as certain loans less than 90 days past due that were placed on non-accrual status for reasons other than delinquent status. There are no commitments to extend further credit on non-accrual or restructured loans.

18

Activity in the allowance for loan losses by portfolio segment is summarized as follows:

(dollars in thousands)	For the three months ended June 30, 2016
	Commercial		Real Estate Mortgage- 1 to 4 Family		Installment		Total
Balance at beginning of period	$	4,919		39,017		462		44,398
Loans charged off:
New York and other states*		68		1,090		92		1,250
Florida		-		17		1		18
Total loan chargeoffs		68		1,107		93		1,268
Recoveries of loans previously charged off:
New York and other states*		1		117		15		133
Florida		-		1		-		1
Total recoveries		1		118		15		134
Net loans charged off		67		989		78		1,134
Provision for loan losses		194		561		45		800
Balance at end of period	$	5,046		38,589		429		44,064

(dollars in thousands)	For the three months ended June 30, 2015
	Commercial		Real Estate Mortgage- 1 to 4 Family		Installment		Total
Balance at beginning of period	$	4,024		41,529		391		45,944
Loans charged off:
New York and other states*		50		1,066		33		1,149
Florida		-		169		-		169
Total loan chargeoffs		50		1,235		33		1,318
Recoveries of loans previously charged off:
New York and other states*		-		133		9		142
Florida		1		2		-		3
Total recoveries		1		135		9		145
Net loans charged off		49		1,100		24		1,173
Provision (credit) for loan losses		47		658		95		800
Balance at end of period	$	4,022		41,087		462		45,571

19

(dollars in thousands)	For the six months ended June 30, 2016
	Commercial		Real Estate Mortgage- 1 to 4 Family		Installment		Total
Balance at beginning of period	$	4,491		39,753		518		44,762
Loans charged off:
New York and other states*		332		1,979		173		2,484
Florida		-		101		17		118
Total loan chargeoffs		332		2,080		190		2,602
Recoveries of loans previously charged off:
New York and other states*		41		235		26		302
Florida		-		2		-		2
Total recoveries		41		237		26		304
Net loans charged off		291		1,843		164		2,298
Provision for loan losses		846		679		75		1,600
Balance at end of period	$	5,046		38,589		429		44,064

(dollars in thousands)	For the six months ended June 30, 2015
	Commercial		Real Estate Mortgage- 1 to 4 Family		Installment		Total
Balance at beginning of period	$	4,071		42,088		168		46,327
Loans charged off:
New York and other states*		100		2,180		76		2,356
Florida		-		278		-		278
Total loan chargeoffs		100		2,458		76		2,634
Recoveries of loans previously charged off:
New York and other states*		16		243		15		274
Florida		2		2		-		4
Total recoveries		18		245		15		278
Net loans charged off		82		2,213		61		2,356
Provision for loan losses		33		1,212		355		1,600
Balance at end of period	$	4,022		41,087		462		45,571

The Company has identified non-accrual commercial and commercial real estate loans, as well as all loans restructured under a troubled debt restructuring (“TDR”), as impaired loans. A loan is considered impaired when it is probable that the borrower will be unable to repay the loan according to the original contractual terms of the loan agreement or the loan is restructured as a TDR.

20

The following tables present the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method as of June 30, 2016 and December 31, 2015:

	June 30, 2016
(dollars in thousands)	Commercial Loans		1-to-4 Family Residential Real Estate		Installment Loans		Total
Allowance for loan losses:
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	-		-		-		-
Collectively evaluated for impairment		5,046		38,589		429		44,064
Total ending allowance balance	$	5,046		38,589		429		44,064
Loans:
Individually evaluated for impairment	$	2,966		22,216		-		25,182
Collectively evaluated for impairment		192,732		3,116,804		8,476		3,318,012
Total ending loans balance	$	195,698		3,139,020		8,476		3,343,194

	December 31, 2015
(dollars in thousands)	Commercial Loans		1-to-4 Family Residential Real Estate		Installment Loans		Total
Allowance for loan losses:
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	-		-		-		-
Collectively evaluated for impairment		4,491		39,753		518		44,762
Total ending allowance balance	$	4,491		39,753		518		44,762
Loans:
Individually evaluated for impairment	$	3,306		22,575		-		25,881
Collectively evaluated for impairment		200,109		3,057,923		9,391		3,267,423
Total ending loans balance	$	203,415		3,080,498		9,391		3,293,304

A loan for which the terms have been modified, and for which the borrower is experiencing financial difficulties, is considered a TDR and is classified as impaired. TDR’s at June 30, 2016 and December 31, 2015 are measured at the present value of estimated future cash flows using the loan’s effective rate at inception or the fair value of the underlying collateral if the loan is considered collateral dependent.

21

The following tables present impaired loans by loan class as of June 30, 2016 and December 31, 2015:

New York and other states:

	June 30, 2016
(dollars in thousands)	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment
Commercial:
Commercial real estate	$	2,966		3,988		-		3,116
Other		-		-		-		-
Real estate mortgage - 1 to 4 family:
First mortgages		17,439		18,350		-		17,146
Home equity loans		241		277		-		265
Home equity lines of credit		1,907		2,070		-		1,909
Total	$	22,553		24,685		-		22,436

Florida:

(dollars in thousands)	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment
Commercial:
Commercial real estate	$	-		-		-		-
Other		-		-		-		-
Real estate mortgage - 1 to 4 family:
First mortgages		1,925		2,016		-		1,711
Home equity loans		97		97		-		67
Home equity lines of credit		607		679		-		612
Total	$	2,629		2,792		-		2,390

Total:

(dollars in thousands)	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment
Commercial:
Commercial real estate	$	2,966		3,988		-		3,116
Other		-		-		-		-
Real estate mortgage - 1 to 4 family:
First mortgages		19,364		20,366		-		18,857
Home equity loans		338		374		-		332
Home equity lines of credit		2,514		2,749		-		2,521
Total	$	25,182		27,477		-		24,826

22

New York and other states:

	December 31, 2015
(dollars in thousands)	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment
Commercial:
Commercial real estate	$	3,306		3,996		-		3,608
Other		-		-		-		-
Real estate mortgage - 1 to 4 family:
First mortgages		17,460		18,602		-		18,127
Home equity loans		359		417		-		382
Home equity lines of credit		2,306		2,569		-		2,238
Total	$	23,431		25,584		-		24,355

Florida:

(dollars in thousands)	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment
Commercial:
Commercial real estate	$	-		-		-		-
Other		-		-		-		-
Real estate mortgage - 1 to 4 family:
First mortgages		1,760		1,852		-		1,489
Home equity loans		53		53		-		54
Home equity lines of credit		637		720		-		654
Total	$	2,450		2,625		-		2,197

Total:

(dollars in thousands)	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment
Commercial:
Commercial real estate	$	3,306		3,996		-		3,608
Other		-		-		-		-
Real estate mortgage - 1 to 4 family:
First mortgages		19,220		20,454		-		19,616
Home equity loans		412		470		-		436
Home equity lines of credit		2,943		3,289		-		2,892
Total	$	25,881		28,209		-		26,552

23

The Company has not committed to lend additional amounts to customers with outstanding loans that are classified as impaired. Interest income recognized on impaired loans was not material during the three months and six months ended June 30, 2016 and 2015.

As of June 30, 2016 and December 31, 2015 impaired loans included approximately $11.0 million and $10.6 million of 1 to 4 family residential real estate loans in accruing status that were identified as TDR’s in accordance with regulatory guidance related to Chapter 7 bankruptcy loans, respectively.

Management evaluates impairment on impaired loans on a quarterly basis. If, during this evaluation, impairment of the loan is identified, a charge off is taken at that time. As a result, as of June 30, 2016 and December 31, 2015, based upon management’s evaluation and due to the sufficiency of chargeoffs taken, none of the allowance for loan losses has been allocated to a specific impaired loan(s).

The following table presents, by class, loans that were modified as TDR’s:

	Three months ended 6/30/2016						Three months ended 6/30/2015
New York and other states*: (dollars in thousands)	Number of Contracts		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment		Number of Contracts		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
Real estate mortgage - 1 to 4 family:
First mortgages		10	$	753	$	753		13	$	1,542	$	1,542
Home equity loans		-		-		-		1		139		139
Home equity lines of credit		5		66		66		2		44		44
Total		15	$	819	$	819		16	$	1,725	$	1,725

Florida:

(dollars in thousands)	Number of Contracts		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment		Number of Contracts		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
Real estate mortgage - 1 to 4 family:
First mortgages		1	$	298	$	298		-	$	-	$	-
Home equity loans		1		46		46		-		-		-
Home equity lines of credit		1		6		6		-		-		-
Total		3	$	350	$	350		-	$	-	$	-

	Six months ended 6/30/2016						Six months ended 6/30/2015
New York and other states*: (dollars in thousands)	Number of Contracts		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment		Number of Contracts		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
Real estate mortgage - 1 to 4 family:
First mortgages		22	$	1,807		1,807		20	$	2,987		2,987
Home equity loans		-		-		-		1		139		139
Home equity lines of credit		9		157		157		2		44		44
Total		31	$	1,964	$	1,964		23	$	3,170	$	3,170

Florida:

(dollars in thousands)	Number of Contracts		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment		Number of Contracts		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
Real estate mortgage - 1 to 4 family:
First mortgages		3	$	525	$	525		1	$	157	$	157
Home equity loans		1		46		46		-		-		-
Home equity lines of credit		1		6		6		2		50		50
Total		5	$	577	$	577		3	$	207	$	207

The addition of these TDR’s did not have a significant impact on the allowance for loan losses.

In situations where the Bank considers a loan modification, management determines whether the borrower is experiencing financial difficulty by performing an evaluation of the probability that the borrower will be in payment default on any of its debt in the foreseeable future without the modification. This evaluation is performed under the Company’s underwriting policy.

24

Generally, the modification of the terms of loans was the result of the borrower filing for bankruptcy protection. Chapter 13 bankruptcies generally include the deferral of all past due amounts for a period of generally 60 months in accordance with the bankruptcy court order. In the case of Chapter 7 bankruptcies, as previously noted, even though there is no modification of terms, the borrowers’ debt to the Company was discharged and they did not reaffirm the debt.

A loan is considered to be in payment default once it is 90 days contractually past due under the modified terms. In situations involving a borrower filing for Chapter 13 bankruptcy protection, however, a loan is considered to be in payment default once it is 30 days contractually past due, consistent with the treatment by the bankruptcy court.

The following table presents, by class, TDR’s that defaulted during the three months and six months ended June 30, 2016 and 2015 which had been modified within the last twelve months:

	Three months ended 6/30/2016				Three months ended 6/30/2015
New York and other states*: (dollars in thousands)	Number of Contracts		Recorded Investment		Number of Contracts		Recorded Investment
Real estate mortgage - 1 to 4 family:
First mortgages		1	$	107		-	$	-
Total		1	$	107		-	$	-

Florida:

(dollars in thousands)	Number of Contracts		Recorded Investment		Number of Contracts		Recorded Investment
Real estate mortgage - 1 to 4 family:
First mortgages		1	$	46		-	$	-
Total		1	$	46		-	$	-

	Six months ended 6/30/2016				Six months ended 6/30/2015
New York and other states*: (dollars in thousands)	Number of Contracts		Recorded Investment		Number of Contracts		Recorded Investment
Real estate mortgage - 1 to 4 family:
First mortgages		3	$	268		-	$	-
Home equity lines of credit		1		48		-		-
Total		4	$	316		-	$	-

Florida:

(dollars in thousands)	Number of Contracts		Recorded Investment		Number of Contracts		Recorded Investment
Real estate mortgage - 1 to 4 family:
Home equity lines of credit		1	$	46		1	$	50
Total		1	$	46		1	$	50

The TDR’s that subsequently defaulted described above did not have a material impact on the allowance for loan losses.

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The Company categorizes non-homogenous loans into risk categories based on relevant information about the ability of borrowers to service their debt, such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. On at least an annual basis, the Company’s loan grading process analyzes non-homogeneous loans, such as commercial and commercial real estate loans, individually by grading the loans based on credit risk.  The loan grades assigned to all loan types are tested by the Company’s internal loan review department in accordance with the Company’s internal loan review policy.

The Company uses the following definitions for classified loans:

Special Mention: Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the Company’s credit position at some future date.

Substandard: Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans classified as such have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected.

Doubtful: Loans classified as doubtful have all the weaknesses inherent in those loans classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. All doubtful loans are considered impaired.

Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be “pass” rated loans.

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As of June 30, 2016 and December 31, 2015, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows:

	June 30, 2016
New York and other states:
(dollars in thousands)
	Pass		Classified		Total
Commercial:
Commercial real estate	$	143,955		14,195		158,150
Other		22,472		724		23,196
	$	166,427		14,919		181,346

Florida:

(dollars in thousands)
	Pass		Classified		Total
Commercial:
Commercial real estate	$	14,272		-		14,272
Other		80		-		80
	$	14,352		-		14,352

Total:

(dollars in thousands)
	Pass		Classified		Total
Commercial:
Commercial real estate	$	158,227		14,195		172,422
Other		22,552		724		23,276
	$	180,779		14,919		195,698

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	December 31, 2015
New York and other states:
(dollars in thousands)
	Pass		Classified		Total
Commercial:
Commercial real estate	$	145,335		15,630		160,965
Other		26,715		734		27,449
	$	172,050		16,364		188,414

Florida:

(dollars in thousands)
	Pass		Classified		Total
Commercial:
Commercial real estate	$	14,908		-		14,908
Other		93		-		93
	$	15,001		-		15,001

Total:

(dollars in thousands)
	Pass		Classified		Total
Commercial:
Commercial real estate	$	160,243		15,630		175,873
Other		26,808		734		27,542
	$	187,051		16,364		203,415

Included in classified loans in the above tables are impaired loans of $2.7 million and $3.0 million at June 30, 2016 and December 31, 2015, respectively.

For homogeneous loan pools, such as residential mortgages, home equity lines of credit, and installment loans, the Company uses payment status to identify the credit risk in these loan portfolios. Payment status is reviewed on a daily basis by the Bank’s collection area and on a monthly basis with respect to determining the adequacy of the allowance for loan losses. The payment status of these homogeneous pools as of June 30, 2016 and December 31, 2015 is included in the aging of the recorded investment of the past due loans table. In addition, the total nonperforming portion of these homogeneous loan pools as of June 30, 2016 and December 31, 2015 is presented in the non-accrual loans table.

(6) Fair Value of Financial Instruments

Fair value measurements (ASC 820) defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820 also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair values:

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Level 1 – Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity can access as of the measurement date.

Level 2 – Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.

Level 3 – Significant unobservable inputs that reflect a company’s own assumptions about the value that market participants would use in pricing an asset or liability.

The Company used the following methods and significant assumptions to estimate the fair value of assets and liabilities:

Securities Available for Sale: The fair value of securities available for sale is determined utilizing an independent pricing service for identical assets or significantly similar securities. The pricing service uses a variety of techniques to arrive at fair value including market maker bids, quotes and pricing models. Inputs to the pricing models include recent trades, benchmark interest rates, spreads and actual and projected cash flows. This results in a Level 2 classification of the inputs for determining fair value. Interest and dividend income is recorded on the accrual method and is included in the Consolidated Statements of Income in the respective investment class under total interest and dividend income. Also classified as available for sale securities, the fair value of equity securities is determined by quoted market prices and these are designated as Level 1. The Company does not have any securities that would be designated as level 3.

Other Real Estate Owned: Assets acquired through loan foreclosure are initially recorded at fair value less costs to sell when acquired, establishing a new cost basis. These assets are subsequently accounted for at lower of cost or fair value less estimated costs to sell. Fair value is commonly based on recent real estate appraisals. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process to adjust for differences between the comparable sales and income data available. This results in a Level 3 classification of the inputs for determining fair value.

Impaired Loans: At the time a loan is considered impaired, it is valued at the lower of cost or fair value. Impaired loans carried at fair value generally have had a chargeoff through the allowance for loan losses. For collateral dependent loans, fair value is commonly based on recent real estate appraisals. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process to adjust for differences between the comparable sales and income data available. Such adjustments may be significant and typically result in a Level 3 classification of the inputs for determining fair value. When obtained, non-real estate collateral may be valued using an appraisal, net book value per the borrower’s financial statements, or aging reports, adjusted or discounted based on management’s historical knowledge, changes in market conditions from the time of the valuation, and management’s expertise and knowledge of the client and client’s business, resulting in a Level 3 fair value classification. Impaired loans are evaluated on a quarterly basis for additional impairment and adjusted accordingly.

Indications of value for both collateral-dependent impaired loans and other real estate owned are obtained from third party providers or the Company’s internal Appraisal Department. All indications of value are reviewed for reasonableness by a member of the Appraisal Department for the assumptions and approaches utilized in the appraisal as well as the overall resulting fair value via comparison with independent data sources such as recent market data or industry-wide statistics.

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Assets and liabilities measured at fair value under ASC 820 on a recurring basis are summarized below:

	June 30, 2016 Using:
	Carrying Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
(dollars in thousands)
Securities available for sale:
U.S. government sponsored enterprises	$	116,595	$	-	$	116,595	$	-
State and political subdivisions		974		-		974		-
Mortgage backed securities and collateralized mortgage obligations - residential		404,138		-		404,138		-
Small Business Administration- guaranteed participation securities		87,740		-		87,740		-
Mortgage backed securities and collateralized mortgage obligations - commercial		10,374		-		10,374		-
Other securities		685		35		650		-
Total securities available for sale	$	620,506	$	35	$	620,471	$	-

	Fair Value Measurements at December 31, 2015 Using:
	Carrying Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
(dollars in thousands)
Securities available for sale:
U.S. government sponsored enterprises	$	86,737	$	-	$	86,737	$	-
State and political subdivisions		1,290		-		1,290		-
Mortgage backed securities and collateralized mortgage obligations - residential		411,729		-		411,729		-
Small Business Administration- guaranteed participation securities		90,416		-		90,416		-
Mortgage backed securities and collateralized mortgage  obligations - commercial		10,180		-		10,180		-
Other securities		685		35		650		-
Total securities available for sale	$	601,037	$	35	$	601,002	$	-

There were no transfers between Level 1 and Level 2 during the three months and six months ended June 30, 2016 and 2015.

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Assets measured at fair value on a non-recurring basis are summarized below:

	Fair Value Measurements at June 30, 2016 Using:
	Carrying Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Valuation technique	Unobservable inputs	Range (Weighted Average)
(dollars in thousands)
Other real estate owned	$	4,602	$	-	$	-	$	4,602	Sales comparison approach	Adjustments for differences between comparable sales		1% - 8% (5%)
Impaired loans:
Commercial real estate		787		-		-		787	Sales comparison approach	Adjustments for differences between comparable sales		3% - 26% (12%)
Real estate mortgage - 1 to 4 family		674		-		-		674	Sales comparison approach	Adjustments for differences between comparable sales		2% - 13% (5%)

	Fair Value Measurements at December 31, 2015 Using:
	Carrying Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Valuation technique	Unobservable inputs	Range (Weighted Average)
(dollars in thousands)
Other real estate owned	$	6,455	$	-	$	-	$	6,455	Sales comparison approach	Adjustments for differences between comparable sales		1% - 10% (4%)
Impaired loans:
Commercial real estate		878		-		-		878	Sales comparison approach	Adjustments for differences between comparable sales		3% - 22% (11%)
Real estate mortgage - 1 to 4 family		3,109		-		-		3,109	Sales comparison approach	Adjustments for differences between comparable sales		0% - 9% (4%)

Other real estate owned, that is carried at fair value less costs to sell was approximately $4.6 million at June 30, 2016 and consisted of $735 thousand of commercial real estate and $3.9 million of residential real estate properties. Valuation charges of $260 thousand and $606 thousand are included in earnings for the three months and six months ended June 30, 2016, respectively.

Of the total impaired loans of $25.2 million at June 30, 2016, $1.5 million are collateral dependent and are carried at fair value measured on a non-recurring basis. Due to the sufficiency of charge offs taken on these loans and the adequacy of the underlying collateral, there were no specific valuation allowances for these loans at June 30, 2016.  Gross charge offs related to commercial impaired loans included in the table above were $68 thousand and $332 thousand for the three months and six months ended June 30, 2016, respectively, while gross charge offs related to residential impaired loans included in the table above amounted to $14 thousand and $126 thousand for the three months and six months ended June 30, 2016, respectively.

Other real estate owned, that is carried at fair value less costs to sell, approximates $6.4 million at December 31, 2015 and consisted of $1.0 million of commercial real estate and $5.4 million of residential real estate properties. A valuation charge of $1.1 million is included in earnings for the year ended December 31, 2015.

Of the total impaired loans of $25.9 million at December 31, 2015, $4.0 million are collateral dependent and are carried at fair value measured on a non-recurring basis. Due to the sufficiency of charge offs taken on these loans and the adequacy of the underlying collateral, there were no specific valuation allowances for these loans at December 31, 2015. Gross charge offs related to commercial impaired loans included in the table above were $641 thousand for the year ended December 31, 2015, while gross charge offs related to residential impaired loans included in the table above amounted to $648 thousand.

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In accordance with ASC 825, the carrying amounts and estimated fair values of financial instruments, at June 30, 2016 and December 31, 2015 are as follows:

(dollars in thousands)	Carrying		Fair Value Measurements at June 30, 2016 Using:
	Value		Level 1		Level 2		Level 3		Total
Financial assets:
Cash and cash equivalents	$	758,396		758,396		-		-		758,396
Securities available for sale		620,506		35		620,471		-		620,506
Held to maturity securities		50,684		-		53,890		-		53,890
Federal Reserve Bank and Federal Home Loan Bank stock		9,579		N/A		N/A		N/A		N/A
Net loans		3,299,130		-		-		3,363,721		3,363,721
Accrued interest receivable		10,704		80		2,455		8,169		10,704
Financial liabilities:
Demand deposits		376,669		376,669		-		-		376,669
Interest bearing deposits		3,803,958		2,625,391		1,179,184		-		3,804,575
Short-term borrowings		190,542		-		190,542		-		190,542
Accrued interest payable		518		78		440		-		518

(dollars in thousands)	Carrying		Fair Value Measurements at December 31, 2015 Using:
	Value		Level 1		Level 2		Level 3		Total
Financial assets:
Cash and cash equivalents	$	718,156		718,156		-		-		718,156
Securities available for sale		601,037		35		601,002		-		601,037
Held to maturity securities		56,465		-		59,439		-		59,439
Federal Reserve Bank and Federal Home Loan Bank stock		9,480		N/A		N/A		N/A		N/A
Net loans		3,248,542		-		-		3,279,167		3,279,167
Accrued interest receivable		10,262		80		2,370		7,812		10,262
Financial liabilities:
Demand deposits		365,081		365,081		-		-		365,081
Interest bearing deposits		3,735,297		2,627,367		1,111,240		-		3,738,607
Short-term borrowings		191,226		-		191,226		-		191,226
Accrued interest payable		501		74		427		-		501

The specific estimation methods and assumptions used can have a substantial impact on the resulting fair values of financial instruments. The following is a brief summary of the significant methods and assumptions used in estimating fair values:

Cash and Cash Equivalents

The carrying values of these financial instruments approximate fair values and are classified as Level 1.

Federal Reserve Bank and Federal Home Loan Bank stock

It is not practical to determine the fair value of Federal Reserve Bank and Federal Home Loan Bank stock due to their restrictive nature.

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Securities Held to Maturity

Similar to securities available for sale described previously, the fair value of securities held to maturity are determined utilizing an independent pricing service for identical assets or significantly similar securities. The pricing service uses a variety of techniques to arrive at fair value including market maker bids, quotes and pricing models. Inputs to the pricing models include recent trades, benchmark interest rates, spreads and actual and projected cash flows. This results in a Level 2 classification of the inputs for determining fair value. Interest and dividend income is recorded on the accrual method and included in the Consolidated Statements of Income in the respective investment class under total interest and dividend income. The Company does not have any securities that would be designated as Level 3.

Loans

The fair values of all loans are estimated using discounted cash flow analyses with discount rates equal to the interest rates currently being offered for loans with similar terms to borrowers of similar credit quality resulting in a Level 3 classification. Impaired loans are valued at the lower of cost or fair value as described previously. The methods utilized to estimate the fair value of loans do not necessarily represent an exit price.

Deposit Liabilities

The fair values disclosed for noninterest bearing demand deposits, interest bearing checking accounts, savings accounts, and money market accounts are, by definition, equal to the amount payable on demand at the balance sheet date resulting in a Level 1 classification. The carrying value of all variable rate certificates of deposit approximates fair value resulting in a Level 2 classification. The fair value of fixed rate certificates of deposit is estimated using discounted cash flow analyses with discount rates equal to the interest rates currently being offered on certificates of similar size and remaining maturity resulting in a Level 2 classification.

Accrued Interest Receivable/Payable

The carrying amounts of accrued interest approximate fair value resulting in a Level 1, Level 2 or Level 3 classification consistent with the asset or liability that they are associated with.

Short-Term Borrowings and Other Financial Instruments

The fair value of all short-term borrowings, and other financial instruments approximates the carrying value resulting in a Level 2 classification.

Financial Instruments with Off-Balance Sheet Risk

The Company is a party to financial instruments with off-balance sheet risk. Such financial instruments consist of commitments to extend financing and standby letters of credit. If the commitments are exercised by the prospective borrowers, these financial instruments will become interest earning assets of the Company. If the commitments expire, the Company retains any fees paid by the prospective borrower. The fair value of commitments is estimated based upon fees currently charged to enter into similar agreements, taking into consideration the remaining terms of the agreements and the present creditworthiness of the borrower. For fixed rate commitments, the fair value estimation takes into consideration an interest rate risk factor. The fair value of these off-balance sheet items approximates the recorded amounts of the related fees, which are considered to be immaterial.

The Company does not engage in activities involving interest rate swaps, forward placement contracts, or any other instruments commonly referred to as derivatives.

33

(7) Accumulated Other Comprehensive (Loss) Income

The following is a summary of the accumulated other comprehensive (loss) income balances, net of tax:

	Three months ended 6/30/16
(dollars in thousands)	Balance at 4/1/2016			Other Comprehensive Income (loss)- Before Reclassifications		Amount reclassified from Accumulated Other Comprehensive Income			Other Comprehensive Income (loss)- Three months ended 6/30/16			Balance at 6/30/2016
Net unrealized holding gain (loss) on securities available for sale, net of tax	$	329			2,739		(401	)		2,338			2,667
Net change in net actuarial loss (gain) and prior service cost on pension and postretirement benefit plans, net of tax		(256	)		-		(16	)		(16	)		(272	)
Accumulated other comprehensive income (loss), net of tax		73			2,739		(417	)		2,322			2,395

	Three months ended 6/30/2015
(dollars in thousands)	Balance at 4/1/2015			Other Comprehensive Income (loss)- Before Reclassifications			Amount reclassified from Accumulated Other Comprehensive Income		Other Comprehensive Income (loss)- Three months ended 6/30/15			Balance at 6/30/2015
Net unrealized holding gain (loss) on securities available for sale, net of tax	$	(1,855	)		(3,289	)		-		(3,289	)		(5,144	)
Net change in net actuarial loss (gain) and prior service cost on pension and postretirement benefit plans, net of tax		(832	)		-			49		49			(783	)
Accumulated other comprehensive income (loss), net of tax		(2,687	)		(3,289	)		49		(3,240	)		(5,927	)

	Six months ended 6/30/16
(dollars in thousands)	Balance at 1/1/2016			Other Comprehensive Loss- Before Reclassifications		Amount reclassified from Accumulated Other Comprehensive Loss			Other Comprehensive Income (loss)- Six months ended 6/30/16		Balance at 6/30/2016
Net unrealized holding gain (loss) on securities available for sale, net of tax	$	(4,492	)		7,560		(401	)		7,159		2,667
Net change in net actuarial loss (gain) and prior service cost on pension and postretirement benefit plans, net of tax		(289	)		-		17			17		(272	)
Accumulated other comprehensive income (loss), net of tax		(4,781	)		7,560		(384	)		7,176		2,395

	Six months ended 6/30/15
(dollars in thousands)	Balance at 1/1/2015			Other Comprehensive Income (loss)- Before Reclassifications			Amount reclassified from Accumulated Other Comprehensive Income			Other Comprehensive Income (loss)- Six months ended 6/30/15			Balance at 6/30/2015
Net unrealized holding gain (loss) on securities available for sale, net of tax	$	(3,693	)		(1,302	)		(149	)		(1,451	)		(5,144	)
Net change in net actuarial loss (gain) and prior service cost on pension and postretirement benefit plans, net of tax		(816	)		-			33			33			(783	)
Accumulated other comprehensive income (loss), net of tax		(4,509	)		(1,302	)		(116	)		(1,418	)		(5,927	)

The following represents the reclassifications out of accumulated other comprehensive income (loss) for the three months and six months ended June 30, 2016 and 2015:

(dollars in thousands)	Three months ended June 30,						Six months ended June 30,
	2016			2015			2016			2015			Affected Line Item in Statements
Net unrealized holding gains (losses) on securities available for sale
Realized gain on securities transactions	$	668			-		$	668			249		Net gain on securities transactions
Income tax expense		(267	)		-			(267	)		(100	)	Income taxes
Net of tax		401			-			401			149
Amortization of pension and postretirement benefit items
Amortization of net actuarial loss		50			(15	)		17			(10	)	Salaries and employee benefits
Amortization of prior service credit		(22	)		(67	)		(45	)		(45	)	Salaries and employee benefits
Income tax benefit		(12	)		33			11			22		Income taxes
Net of tax		16			(49	)		(17	)		(33	)
Total reclassifications, net of tax	$	417			(49	)	$	384			116

34

(8) Agreement with the Office of the Comptroller of the Currency

On July 21, 2015 Trustco Bank (the “Bank”), the wholly owned subsidiary of TrustCo Bank Corp NY, entered into a formal agreement (the “Agreement”) with the Comptroller of the Currency of the United States (the “OCC”).

The Agreement relates to the findings of the OCC following an examination of the Bank. Since the completion of the examination, the Bank believes it has been working diligently to address the findings of the examination and to develop and implement appropriate formal action plans.

The Agreement requires the Bank to take various actions, within prescribed time frames, with respect to certain areas of the Bank. These include, among others, (i) establishment of a committee of at least three Directors to monitor and coordinate the Bank’s response to the Agreement; (ii) adoption of compliance plans to respond to the Agreement with the assistance of an independent qualified consultant; (iii) evaluation and implementation of improvements in corporate governance with the assistance of an independent qualified consultant; (iv) evaluation and implementation of improvements in internal audit; (v) development of a strategic plan; (vi) development of a revised capital plan consistent with the strategic plan; (vii) development and implementation of improvements to the Bank’s loan review system; and (viii) such other necessary steps to address the issues and questions noted by the OCC in the Agreement.

(9) New Accounting Pronouncements

In January 2016, the FASB amended existing guidance to improve accounting standards for financial instruments including clarification and simplification of accounting and disclosure requirements and the requirement for public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes. These amendments are effective for public business entities for annual periods and interim periods within those annual periods beginning after December 15, 2017. The Company is evaluating the impact of these amendments on its consolidated financial statements.

In February 2016, the FASB amended existing guidance to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. These amendments are effective for public business entities for annual periods and interim periods within those annual periods beginning after December 15, 2018. The Company is evaluating the impact of these amendments on its consolidated financial statements.

In March 2016, the FASB amended existing guidance to simplify aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. These amendments are effective for public business entities for annual periods and interim periods within those annual periods beginning after December 15, 2016. The Company is evaluating the impact of these amendments on its consolidated financial statements.

In June 2016, the FASB released Accounting Standards Update 2016-13 Financial Instruments – Credit Losses which amended existing guidance to replace current generally accepted accounting principles used to measure a reporting entity’s credit losses.  The main objective of this update is to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. To achieve this objective, the amendments in this update replace the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. These amendments are effective for public business entities for annual periods and interim periods within those annual periods beginning after December 15, 2019. The Company is evaluating the impact of these amendments on its consolidated financial statements.

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	Crowe Horwath LLP Independent Member Crowe Horwath International

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

The Board of Directors and Shareholders

TrustCo Bank Corp NY

Glenville, New York

We have reviewed the accompanying consolidated statement of financial condition of TrustCo Bank Corp NY as of June 30, 2016, and the related consolidated statements of income, comprehensive income for the three-month and six-month periods ended June 30, 2016 and 2015, changes in shareholders’ equity, and cash flows for the six-month period ended June 30, 2016 and 2015. These interim financial statements are the responsibility of the Company's management.

We conducted our reviews in accordance with the standards of the Public Company Accounting Oversight Board (United States). A review of interim financial information consists principally of applying analytical procedures and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with the standards of the Public Company Accounting Oversight Board, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion.

Based on our reviews, we are not aware of any material modifications that should be made to the accompanying interim financial statements for them to be in conformity with U.S. generally accepted accounting principles.

	/s/ Crowe Horwath LLP
New York, New York
August 5, 2016

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Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

Forward-looking Statements

Statements included in this report and in future filings by TrustCo Bank Corp NY (“TrustCo” or the “Company”) with the Securities and Exchange Commission, in TrustCo’s press releases, and in oral statements made with the approval of an authorized executive officer, which are not historical or current facts, are “forward-looking statements” made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, and are subject to certain risks and uncertainties that could cause actual results to differ materially from historical earnings and those presently anticipated or projected. Forward-looking statements can be identified by the use of such words as may, will, should, could, would, estimate, project, believe, intend, anticipate, plan, seek, expect and similar expressions.  Examples of forward-looking statements include, among others, statements TrustCo makes regarding its expectations for complying with the new regulatory capital rules, costs associated with the Formal Agreement that the Company’s subsidiary, Trustco Bank (or the “Bank”) has entered into with the Office of the Comptroller of the Currency (“OCC”), the Company’s ability to grow its balance sheet and the profitability of such growth, the ability of its loan products to continue to attract customers if long-term rates rise and the ability to secure new sources of liquidity should the need arise.  TrustCo wishes to caution readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made.

In addition to factors described under Part II, Item 1A, Risk Factors, if any, and under the Risk Factor discussion in TrustCo’s Annual Report on Form 10-K for the year ended December 31, 2015, 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:

· TrustCo’s ability to continue to originate a significant volume of one- to- four family mortgage loans in its market areas and to otherwise maintain or increase its market share in the areas in which it operates;

· TrustCo’s ability to continue to maintain noninterest expense and other overhead costs at reasonable levels relative to income;

· TrustCo’s ability to comply with the Formal Agreement entered into with Trustco Bank’s regulator, the OCC, and potential regulatory actions if TrustCo or Trustco Bank fails to comply;

· Restrictions or conditions imposed by TrustCo’s and Trustco Bank’s regulators on their operations that may make it more difficult to achieve TrustCo’s and Trustco Bank’s goals;

· the future earnings and capital levels of TrustCo and Trustco Bank and the continued receipt of approvals from TrustCo’s and Trustco Bank’s primary federal banking regulators under regulatory rules and the Formal Agreement to distribute capital from Trustco Bank to TrustCo, which could affect the ability of TrustCo to pay;

· TrustCo’s ability to make accurate assumptions and judgments regarding the credit risks associated with its lending and investing activities, including changes in the level and direction of loan delinquencies and chargeoffs, changes in property values, and changes in estimates of the adequacy of the allowance for loan and lease losses;

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· 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;

· adverse conditions in the securities markets that lead to impairment in the value of securities in TrustCo’s investment portfolio;

· the perceived overall value of TrustCo’s products and services by users, including the features, pricing and quality compared to competitors’ products and services and the willingness of current and prospective customers to substitute competitors’ products and services for TrustCo’s products and services;

· changes in consumer spending, borrowing and savings habits;

· the effect of changes in financial services laws and regulations (including laws concerning taxation, banking and securities) and the impact of other governmental initiatives affecting the financial services industry, including new regulatory capital requirements that took effect for 2015;

· the results of examinations of Trustco Bank and the Company by their respective primary federal banking regulators, including the possibility that the regulators may, among other things, require us to increase our loss allowances or to take other actions that reduce capital or income;

· changes in management personnel;

· real estate and collateral values;

· changes in accounting policies and practices, as may be adopted by the bank regulatory agencies Financial Accounting Standards Board (“FASB”) or the Public Company Accounting Oversight Board;

· 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;

· TrustCo’s success at managing the risks involved in the foregoing and managing its business; and

· other risks and uncertainties included under “Risk Factors” in our Form 10-K for the year ended December 31, 2015.

The foregoing list should not be construed as exhaustive, and the Company disclaims any obligation to subsequently revise any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.

Following this discussion are the tables "Distribution of Assets, Liabilities and Shareholders' Equity: Interest Rates and Interest Differential" which gives a detailed breakdown of TrustCo's average interest earning assets and interest bearing liabilities for the three and six month periods ended June 30, 2016 and 2015.

Introduction

The review that follows focuses on the factors affecting the financial condition and results of operations of TrustCo during the three and six month periods ended June 30, 2016, with comparisons to the corresponding periods in 2015, as applicable.  Net interest margin is presented on a fully taxable equivalent basis in this discussion.  The consolidated interim financial statements and related notes, as well as the 2015 Annual Report to Shareholders on Form 10-K, which was filed with the SEC on March 4, 2016, should also be read in conjunction with this review.  Amounts in prior period consolidated interim financial statements are reclassified whenever necessary to conform to the current period's presentation.

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Equity markets ended the second quarter up modestly, after suffering a meaningful correction earlier in the quarter.  Overall volatility was relatively high.  For the full second quarter, the S&P 500 Index was up 0.8% and the Dow Jones Industrial Average was up 1.5%.  Credit markets continue to be driven by worldwide economic news and decreasing liquidity in some segments of the bond market.  The shape of the curve continued to flatten during the quarter, with yields declining across the curve.  The 10 year Treasury bond averaged 1.75% during Q2 compared to 1.92% in Q1, a decrease of 17 basis points.  However, the 2 year Treasury bond average rate declined just 7 basis points to 0.77%, resulting in the flattening of the curve.  The spread between the 10 year and the 2 year Treasury bonds decreased from 1.08% on average in Q1 to 0.98% in Q2.  This spread has declined in eight of the last nine quarters, and is less than half the 2.42% level averaged at its most recent peak in Q4 of 2013.  Steeper yield curves are favorable for portfolio mortgage lenders like TrustCo.  The table below illustrates the range of rate movements for both short term and longer term rates.  The target Fed Funds range remained unchanged at 0.25% to 0.50% during the second quarter of 2016, unchanged since the 25 basis point increase in the fourth quarter of 2015.  Spreads of most asset classes, including agency securities and mortgage-backed securities, declined slightly compared to recent quarters.  Changes in rates and spreads during the current quarter were due to a number of factors; however, uncertainty about the timing of any actions that the Federal Reserve Board (“FRB”) would take in regard to the extraordinary accommodations that have influenced markets in recent years and further uncertainty regarding the economy and related issues were key factors.  Low risk free rates in major nations have also caused investors to shift into alternative fixed income instruments, contributing to the compression of spreads over the risk free rate.

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		3 Month	2 Year	5 Year	10 Year	10 - 2 Year
		Yield (%)	Yield (%)	Yield (%)	Yield (%)	Spread (%)
Q1/15	Beg of Q1	0.02	0.66	1.61	2.12	1.46
	Peak	0.05	0.73	1.70	2.24	1.51
	Trough	0.01	0.44	1.18	1.68	1.19
	End of Q1	0.03	0.56	1.37	1.94	1.38
	Average in Q1	0.02	0.60	1.46	1.97	1.36
Q2/15	Beg of Q2	0.03	0.55	1.32	1.87	1.32
	Peak	0.03	0.75	1.80	2.50	1.77
	Trough	0.01	0.49	1.26	1.85	1.32
	End of Q2	0.01	0.64	1.63	2.35	1.71
	Average in Q2	0.02	0.61	1.53	2.16	1.55
Q3/15	Beg of Q3	0.01	0.69	1.70	2.43	1.74
	Peak	0.12	0.82	1.72	2.44	1.77
	Trough	0.00	0.55	1.37	2.01	1.40
	End of Q3	0.00	0.64	1.37	2.06	1.42
	Average in Q3	0.04	0.69	1.56	2.22	1.53
Q4/15	Beg of Q4	0.00	0.64	1.37	2.05	1.41
	Peak	0.29	1.09	1.81	2.36	1.47
	Trough	0.00	0.57	1.29	1.99	1.19
	End of Q4	0.16	1.06	1.76	2.27	1.21
	Average in Q4	0.13	0.84	1.59	2.19	1.35
Q1/16	Beg of Q1	0.16	1.06	1.76	2.27	1.21
	Peak	0.36	1.06	1.76	2.27	1.23
	Trough	0.16	0.64	1.11	1.63	0.95
	End of Q1	0.21	0.73	1.21	1.78	1.05
	Average in Q1	0.29	0.84	1.37	1.92	1.08
Q2/16	Beg of Q2	0.21	0.73	1.21	1.78	1.05
	Peak	0.35	0.92	1.41	1.94	1.08
	Trough	0.19	0.58	1.00	1.46	0.85
	End of Q2	0.26	0.58	1.01	1.49	0.91
	Average in Q2	0.26	0.77	1.24	1.75	0.98

Despite some modest improvements in parts of the economy, the underlying economy of the United States continued to face significant challenges. Employment metrics were somewhat more positive than negative, but were not particularly robust. Economic conditions vary significantly over geographic areas, with strength concentrated in and around major population centers on the coasts and in certain areas where economic activity has been driven by specific regional factors.  The unprecedented intervention by governments in markets and attempts to stimulate the economy, including the sharp easing of monetary policy during 2007-2008 will eventually be reversed. Economic activity in Europe, China and elsewhere has also been mixed at best, contributing to global economic issues and leading to additional government stimulation efforts in those areas.  Finally, regulatory changes that have been enacted are expected to continue to impact the banking industry going forward. These regulatory changes have added significant operating expense and operational burden and fundamentally changed the way banks conduct business.

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TrustCo believes that its long-term focus on traditional banking services and practices has enabled the Company to avoid significant impact from asset quality problems and that the Company’s strong liquidity and solid capital positions have allowed the Company to continue to conduct business in a manner consistent with its past practice.  TrustCo has not engaged in the types of high risk loans and investments that have led to the widely reported problems in the industry.  Nevertheless, the Company may experience increases in nonperforming loans (“NPLs”) relative to historical levels from time to time.   While the Company does not expect to see a significant change in the inherent risk of loss in its loan portfolio at June 30, 2016, should general housing prices and other economic measures, such as unemployment in the Company’s market areas, deteriorate, the Company may experience an increase in the level of credit risk and in the amount of its classified and nonperforming loans.

Overview

TrustCo recorded net income of $10.5 million, or $0.109 of diluted earnings per share for the three months ended June 30, 2016, compared to net income of $10.7 million or $0.113 of diluted earnings per share in the same period in 2015.  Return on average assets was 0.88% and 0.91%, respectively, for the three months ended June 30, 2016 and 2015.  Return on average equity was 9.88% and 10.66%, respectively, for the three months ended June 30, 2016 and 2015.

For the six months ended June 30, 2016, net income was $20.9 million or $0.219 of diluted earnings per share, compared to $21.4 million and $0.226 per share, respectively, in the same period in 2015.  Return on average assets was 0.88% and 0.92%, respectively, for the six months ended June 30, 2016 and 2015.  Return on average equity was 9.93% and 10.78%, respectively, for the six months ended June 30, 2016 and 2015.

The primary factors accounting for the change in net income for the three months ended June 30, 2016 compared to the same periods of the prior year were:

· An increase in the average balance of interest earning assets of $55.2 million to $4.70 billion for the second quarter of 2016 compared to the same period in 2015.

· An increase in taxable equivalent net interest margin for the second quarter of 2016 to 3.09% from 3.07% in the prior year period.  The increase in the margin coupled with the increase in average earning assets, resulted in an increase of $621 thousand in taxable equivalent net interest income in the second quarter of 2016 compared to the second quarter of 2015.

· An increase of $668 thousand in securities gains for the second quarter of 2016 as compared to the prior year period.

· An increase of $1.8 million in noninterest expense, including net other real estate (“ORE”) expense, for the second quarter of 2016 compared to the second quarter of 2015.

· A decrease of $207 thousand in income taxes, in the second quarter of 2016 compared to the prior year due to lower pre-tax earnings.

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The primary factors accounting for the change in net income for the six months ended June 30, 2016 compared to the same periods of the prior year were:

· An increase in the average balance of interest earning assets of $51.5 million to $4.66 billion for the first six months of 2016 compared to the same period in 2015.

· An increase in taxable equivalent net interest margin for the first six months of 2016 to 3.11% from 3.08% in the prior year period.  The increase in the margin coupled with the increase in average earning assets, resulted in an increase of $1.6 million in taxable equivalent net interest income in the first six months of 2016 compared to the same period in 2015.

· An increase of $419 thousand in securities gains for the first six months of 2016 as compared to the prior year period.

· An increase of $3.4 million in noninterest expense, including net other real estate (“ORE”) expense, for the first six months of 2016 compared to the same period in 2015.

· A decrease of $517 thousand in income taxes, in the first six months of 2016 compared to the same period in 2015.

Regulatory Agreement

On July 21, 2015 Trustco Bank, the wholly owned subsidiary of the Company, entered into a formal agreement with the OCC.

The Formal Agreement relates to the findings of the OCC following its regularly scheduled examination of the Bank in January 2015.  Since the completion of the examination, the Bank believes it has been working diligently to address the findings of the examination and to develop and implement appropriate formal action plans.

The Formal Agreement requires the Bank to take various actions, within prescribed time frames, with respect to certain areas of the Bank.  These include, among others, (i) establishment of a committee of at least three Directors to monitor and coordinate the Bank’s response to the Formal Agreement; (ii) adoption of compliance plans to respond to the Formal Agreement with the assistance of an independent qualified consultant; (iii) evaluation and implementation of improvements in corporate governance with the assistance of an independent qualified consultant; (iv) evaluation and implementation of improvements in internal audit; (v) development of a strategic plan; (vi) development of a revised capital plan, including dividends, consistent with the strategic plan; (vii) development and implementation of improvements to the Bank’s loan review system; and (viii) such other necessary steps to address the issues and questions noted by the OCC in the Formal Agreement.  The Company expects the cost to comply with the agreement to be approximately $5.0 million annually.

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Asset/Liability Management

The Company strives to generate its earnings capabilities through a mix of core deposits funding a prudent mix of earning assets.  Additionally, TrustCo attempts to maintain adequate liquidity and reduce the sensitivity of net interest income to changes in interest rates to an acceptable level while enhancing profitability both on a short-term and long-term basis.

TrustCo’s results are affected by a variety of factors including competitive and economic conditions in the specific markets in which the Company operates, and more generally in the national economy, financial market conditions and the regulatory environment.  Each of these factors is dynamic, and changes in any area can have an impact on TrustCo’s results.  Included in the Annual Report to Shareholders on Form 10-K for the year ended December 31, 2015 is a description of the effect interest rates had on the results for the year 2015 compared to 2014.  Many of the same market factors discussed in the 2015 Annual Report continued to have a significant impact on results through the second quarter of 2016.

TrustCo competes with other financial service providers based upon many factors including quality of service, convenience of operations and rates paid on deposits and charged on loans.  In the experience of management, the absolute level of interest rates, changes in interest rates and customers’ expectations with respect to the direction of interest rates have a significant impact on the volume of loan and deposit originations in any particular period.

Interest rates have a significant impact on the operations and financial results of all financial services companies. One of the most important interest rates used to implement national economic policy is the Federal Funds rate. This is the interest rate utilized within the banking system for overnight borrowings for institutions with the highest credit rating. The Federal Funds target rate decreased from 4.25% at the beginning of 2008 to a target range of 0.00% to 0.25% by the end of 2008. In December 2015, the target range increased to 0.50%.  FRB officials have not been completely consistent or clear in regard to expectations for the future and have generally stressed the need to be accommodative given economic conditions, but have noted in their June statement that “The stance of monetary policy remains accommodative, thereby supporting further improvement in labor market conditions and a return to 2 percent inflation.   The Committee expects that economic conditions will evolve in a manner that will warrant only gradual increases in the federal funds rate; the federal funds rate is likely to remain, for some time, below levels that are expected to prevail in the longer run.”

Traditionally, interest rates on bank deposit accounts are heavily influenced by the Federal Funds rate.  The average rate on interest bearing deposits was 2 basis points lower in the second quarter of 2016 relative to the prior year period.  Relative to the year ago period, lower rates on money market deposits accounted for the overall reduction in the cost of interest bearing deposits.  Please refer to the statistical disclosures in the table below entitled “Distribution of Assets, Liabilities and Shareholders’ Equity: Interest Rates and Interest Differential.”

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The interest rate on the 10 year Treasury bond and other long-term interest rates have significant influence on the rates for new residential real estate loans. The FRB has attempted to influence rates on mortgage loans by means other than targeting a lower Federal Funds rate, including direct intervention in the mortgage-backed securities market through purchasing these securities in an attempt to raise prices and reduce yields.  In recent periods this includes the reinvestment of principal payments received on its holdings of agency securities, agency mortgage-backed securities and Treasury securities. While no longer increasing its holdings of these securities, the reinvestment of principal means that the existing holdings are not being unwound.  Eventually, management believes, the FRB will have to unwind these positions, which would likely put upward pressure on rates, although other factors may mitigate this pressure.  These changes in interest rates can have an effect on the Company relative to the interest income on loans, securities and Federal Funds sold and other short term instruments, as well as on interest expense on deposits and borrowings.

TrustCo’s principal loan products are residential real estate loans.  As noted above, residential real estate loans and longer-term investments are most affected by the changes in longer term market interest rates such as the 10 year Treasury. As noted previously, the 10 year Treasury yield was down significantly, on average, during the second quarter of 2016 compared to the second quarter of 2015.

Interest rates on new residential real estate loan originations are also influenced by the rates established by secondary market participants such as Freddie Mac and Fannie Mae.  As a portfolio lender, TrustCo does not sell loans into the secondary market in the normal course of business, and is able to establish rates that management determines are appropriate in light of the long-term nature of residential real estate loans while remaining competitive with the secondary market rates.  Financial market volatility and the problems faced by the financial services industry have lessened the influence of the secondary market; however, various programs initiated by arms of the federal government have had an impact on rate levels for certain products.  Most importantly, a government goal of keeping mortgage rates low has been supported by targeted buying of certain securities, thus supporting prices and constraining yields, as noted above.  Very low interest rates in many markets around the world have also increased demand for US fixed income assets, which has also contributed to the decline of rates on these assets.

The Federal Funds sold and other short term investments portfolios are affected primarily by changes in the Federal Funds target rate. Also, changes in interest rates have an effect on the recorded balance of the securities available for sale portfolio, which is recorded at fair value. Generally, as interest rates increase the fair value of these securities will decrease.

Interest rates generally remained below historic norms on both short term and longer term investments during the second quarter of 2016.

While TrustCo has been affected by aspects of the overall changes in financial markets, it was not affected to the degree the mortgage crisis affected some banks and financial institutions in the United States beginning in 2007.  Generally, the crisis revolved around actual and future levels of delinquencies and defaults on mortgage loans, in many cases arising, in management’s view, from lenders with overly liberal underwriting standards, changes in the types of mortgage loans offered, significant upward resets on adjustable rate loans and fraud, among other factors.  The Company utilizes a traditional underwriting process in evaluating loan applications, and since originated loans are retained in the portfolio, there is a strong incentive to be conservative in making credit decisions.  For additional information concerning TrustCo’s loan portfolio and nonperforming loans, please refer to the discussions under “Loans” and “Nonperforming Assets,” respectively.  Further, the Company does not rely on borrowed funds to support its assets and maintains a significant level of liquidity on the asset side of the balance sheet.  These characteristics provide the Company with increased flexibility and stability during periods of market disruption and interest rate volatility.

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A fundamental component of TrustCo’s strategy has been to grow customer relationships and the deposits and loans that are part of those relationships.  The Company has significant capacity to grow its balance sheet given its existing infrastructure.  The Company expects that growth to be profitable.  The current interest rate environment, however, has narrowed the margin on incremental balance sheet expansion.  While the Company has not changed its fundamental long term strategy in regard to utilizing its excess capacity, management continually evaluates changing conditions and may seek to limit growth or reduce the size of the balance sheet if its analysis indicates that doing so would be beneficial in the short term.

For the second quarter of 2016, the net interest margin was 3.09%, up 2 basis points versus the prior year’s quarter.  The quarterly results reflect the following significant factors:

• The average balance of Federal Funds sold and other short-term investments decreased by $14.7 million while the average yield was 50 basis points in the second quarter of 2016 compared to 25 basis points in the same period in 2015.  The decrease in the average balance reflects the continued growth of the loan portfolio.

• The average balance of securities available for sale decreased by $17.0 million while the average yield decreased to 1.89% for the second quarter of 2016 compared to 1.93% for the same period in 2015.  The average balance of held to maturity securities decreased by $13.3 million and the average yield increased to 4.05% for the second quarter of 2016 compared to 3.87% for the same period in 2015.

• The average loan portfolio grew by $100.2 million to $3.32 billion and the average yield decreased 10 basis points to 4.29% in the second quarter of 2016 compared to the same period in 2015.  The decline in the average yield primarily reflects the decline in market interest rates on new loan originations as older, higher rate loans pay down or are paid off.

• The average balance of interest bearing liabilities (primarily deposit accounts) increased $6.5 million and the average rate paid decreased 2 basis points to 0.39% in the second quarter of 2016 compared to the same period in 2015.

During the second quarter of 2016, the Company continued to focus on its strategy to expand the loan portfolio by offering competitive interest rates.  Management believes the TrustCo residential real estate loan product is very competitive compared to local and national competitors.  Competition remains strong in the Company’s market areas.

The strategy on the funding side of the balance sheet continues to be to attract and retain deposit customers to the Company based upon a combination of service, convenience and interest rate.

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Earning Assets

Total average interest earning assets increased from $4.65 billion in the second quarter of 2015 to $4.70 billion in the same period of 2016 with an average yield of 3.42% in both periods.  The mix shift towards a higher proportion of loans, along with the increase in yield on cash offset the declining yields on securities and loans.  Interest income on average earning assets increased from $39.7 million in the second quarter of 2015 to $40.2 million in the second quarter of 2016, on a tax equivalent basis. The increase was the result of higher volume and flat yield.

Loans

The average balance of loans was $3.32 billion in the second quarter of 2016 and $3.22 billion in the comparable period in 2015.  The yield on loans decreased 10 basis points to 4.29%.  The higher average balances more than offset the lower yield, leading to an increase in the interest income on loans from $35.3 million in the second quarter of 2015 to $35.7 million in the second quarter of 2016.

Compared to the second quarter of 2015, the average balance of the loan portfolio during the second quarter of 2016 increased in all categories except commercial loans, with increases in residential mortgage, home equity and installment loan categories.  The average balance of residential mortgage loans was $2.76 billion in 2016 compared to $2.65 billion in 2015, an increase of 4.2%.  The average yield on residential mortgage loans decreased by 13 basis points to 4.31% in the second quarter of 2016 compared to 2015.

TrustCo actively markets the residential loan products within its market territories.  Mortgage loan rates are affected by a number of factors including rates on Treasury securities, the Federal Funds rate and rates set by competitors and secondary market participants.  TrustCo aggressively markets the unique aspects of its loan products thereby attempting to create a differentiation from other lenders.  These unique aspects include low closing costs, fast turn-around time on loan approvals, no escrow or mortgage insurance requirements for qualified borrowers and the fact that the Companytypically holds these loans in portfolio and does not sell them into the secondary markets.  Assuming a rise in long-term interest rates, the Company would anticipate that the unique features of its loan products will continue to attract customers in the residential mortgage loan area.

Commercial loans, which consist primarily of loans secured by commercial real estate, decreased $11.5 million to an average balance of $198.9 million in the second quarter of 2016 compared to the same period in the prior year.  The average yield on this portfolio was flat at 5.15% over the same period.

The average yield on home equity credit lines increased 8 basis points to 3.58% during the second quarter of 2016 compared to 3.50% in the year earlier period.  The average balances of home equity lines increased 0.2% to $354.9 million in the second quarter of 2016 as compared to the prior year.

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Securities Available for Sale

The average balance of the securities available for sale portfolio for the second quarter of 2016 was $652.1 million compared to $669.1 million for the comparable period in 2015.  The decreased balances reflect routine paydowns, calls, maturities and sales, partly offset by new investment purchases.  During the quarter, continued low market yields on securities eligible to be added to the portfolio resulted in loans being a more attractive option for the deployment of cash.  The average yield was 1.89% for the second quarter of 2016 and 1.93% for the second quarter of 2015 for the available for sale portfolio.  This portfolio is primarily comprised of agency issued residential mortgage backed securities, bonds issued by government sponsored enterprises (such as Fannie Mae, the Federal Home Loan Bank, and Freddie Mac), agency-issued commercial mortgage backed securities, Small Business Administration participation certificates and municipal bonds.  These securities are recorded at fair value with any adjustment in fair value included in other comprehensive income (loss), net of tax.

The net unrealized gain in the available for sale securities portfolio was $4.4 million as of June 30, 2016 compared to a net unrealized loss of $7.5 million as of December 31, 2015.  The unrealized gain or loss in the portfolio is primarily the result of changes in market interest rate levels.

Held to Maturity Securities

The average balance of held to maturity securities was $52.2 million for the second quarter of 2016 compared to $65.5 million in the second quarter of 2015.  The decrease in balances reflects routine paydowns, calls and maturities and follows the overall decline in securities with a shift towards cash for more flexibility and loans for greater yield.  The average yield was 4.05% for the second quarter of 2016 compared to 3.87% for the year earlier period.  The higher yield reflects a modest change in mix and slower prepayments on MBS, which reduced premium amortization.  TrustCo expects to hold the securities in this portfolio until they mature or are called.

As of June 30, 2016, the securities in this portfolio include residential mortgage-backed securities and corporate bonds.  The balances for these securities are recorded at amortized cost.

Federal Funds Sold and Other Short-term Investments

The 2016 second quarter average balance of Federal Funds sold and other short-term investments was $668.4 million, a $14.7 million decrease from the $683.1 million average for the same period in 2015.  The yield was 0.50% for the second quarter of 2016 and 0.25% for the comparable period in 2015.  Interest income from this portfolio increased $409 thousand from $423 thousand in 2015 to $832 thousand in 2016, reflecting the target rate increase that took effect in December.

The Federal Funds sold and other short-term investments portfolio is utilized to generate additional interest income and liquidity as funds are waiting to be deployed into the loan and securities portfolios.

Funding Opportunities

TrustCo utilizes various funding sources to support its earning asset portfolio.  The vast majority of the Company’s funding comes from traditional deposit vehicles such as savings, demand deposits, interest-bearing checking, money market and time deposit accounts.

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Total average interest bearing deposits (which includes interest bearing checking, money market accounts, savings and certificates of deposit) increased $8.1 million to $3.79 billion for the second quarter of 2016 versus the second quarter in the prior year, and the average rate paid decreased from 0.40% for 2015 to 0.38% for 2016.  Total interest expense on these deposits decreased $110 thousand to $3.6 million in the second quarter of 2016 compared to the year earlier period.  From the second quarter of 2015 to the second quarter of 2016, interest bearing demand account average balances were up 7.5%, certificates of deposit average balances were down 1.1%, non-interest demand average balances were up 7.5% and average savings balances increased 1.9%.  Money market balances were down 8.7%.   The Company has not utilized brokered deposits as a funding source, but does incorporate them as a contingent funding source within its Asset/Liability Policy.  Like other contingent funding sources, brokered CDs may be tested from time to time to ensure operational and market readiness.

At June 30, 2016, the maturity of total time deposits is as follows:

(dollars in thousands)
Under 1 year	$	1,024,430
1 to 2 years		104,028
2 to 3 years		37,346
3 to 4 years		10,126
4 to 5 years		2,437
Over 5 years		200
	$	1,178,567

Average short-term borrowings for the quarter were $181.2 million in 2016 compared to $182.8 million in 2015.  The average rate decreased during this time period from 0.66% in 2015 to 0.58% in 2016.  The short-term borrowings of the Company are cash management accounts, which represent retail accounts with customers for which the Bank has pledged certain assets as collateral.

Net Interest Income

Taxable equivalent net interest income increased by $621 thousand to $36.3 million in the second quarter of 2016 compared to the same period in 2015.  The net interest spread was up 2 basis points to 3.03% in the second quarter of 2016 compared to the year ago period. As previously noted, the net interest margin was up 2 basis points to 3.09% for the second quarter of 2016 compared to the same period in 2015.

Nonperforming Assets

Nonperforming assets include nonperforming loans (“NPLs”), which are those loans in a non-accrual status and loans past due three payments or more and still accruing interest.  Also included in the total of nonperforming assets are foreclosed real estate properties, which are included in other assets and categorized as other real estate owned.

The following describes the nonperforming assets of TrustCo as of June 30, 2016:

Nonperforming loans and foreclosed real estate: Total NPLs were $28.2 million at June 30, 2016, compared to $28.3 million at December 31, 2015 and $32.5 million at June 30, 2015.  There were $28.2 million of non-accrual loans at June 30, 2016 compared to $28.2 million at December 31, 2015 and $32.4 million at June 30, 2015.  There were no loans at June 30, 2016 and 2015 and December 31, 2015 that were past due 90 days or more and still accruing interest.

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At June 30, 2016, nonperforming loans primarily include a mix of commercial and residential loans.  Of total nonperforming loans of $28.2 million at June 30, 2016, $25.5 million were residential real estate loans, $2.7 million were commercial mortgages and $49 thousand were installment loans, compared to $25.1 million, $3.0 million and $98 thousand, respectively at December 31, 2015.

A significant percentage of nonperforming loans are residential real estate loans, which are historically lower-risk than most other types of loans.  Annualized net chargeoffs were 0.13% of average residential real estate loans (including home equity lines of credit) for the second quarter of 2016 compared to 0.15% for the second quarter of 2015.  Management believes that these loans have been appropriately written down where required.

Ongoing portfolio management is intended to result in early identification and disengagement from deteriorating credits. TrustCo has a diversified loan portfolio that includes a significant balance of residential mortgage loans to borrowers in the Capital Region of New York and avoids concentrations to any one borrower or any single industry.  TrustCo has no advances to borrowers or projects located outside the United States.  TrustCo continues to identify delinquent loans as quickly as possible and to move promptly to resolve problem loans.  Efforts to resolve delinquencies begin immediately after the payment grace period expires, with repeated, automatically generated notices, as well as personalized phone calls and letters.  Loans are placed in nonaccrual status once they are 90 days past due, or earlier if management has determined that such classification is appropriate.  Once in nonaccrual status, loans are either brought current and maintained current, at which point they may be returned to accrual status, or they proceed through the foreclosure process.  The collateral on nonaccrual loans is evaluated periodically, and the loan value is written down if the collateral value is insufficient.

The Company originates loans throughout its deposit franchise area.  At June 30, 2016, 79.6% of its gross loan portfolio balances were in New York State and the immediately surrounding areas (including New Jersey, Vermont and Massachusetts), and 20.4% were in Florida.  Those figures compare to 80.5% and 19.5%, respectively at December 31, 2015.  Within these two geographic regions, commercial loans constitute a larger component of the local outstandings in New York than in Florida, at 6.8% and 2.1%, respectively, as of June 30, 2016.

Economic conditions vary widely by geographic location.  Florida experienced a more significant downturn than New York during the recession.  Reflecting that, nonperforming loans (NPLs as a percentage of the portfolio) had generally been more heavily weighted towards Florida in recent years.  However, as of June 30, 2016, NPLs were roughly in line with regional outstandings, as 6.7% of nonperforming loans were to Florida borrowers, compared to 93.3% in New York and surrounding areas.  The level of Florida based NPLs was 6.5% of total NPLs as of December 31, 2015.  For the three months ended June 30, 2016, New York and surrounding areas experienced net charge-offs of approximately $1.1 million, compared to $17 thousand in Florida.

49

Other than loans currently identified as nonperforming, management is aware of no other loans in the Bank’s portfolio that pose material risk of the eventual non-collection of principal and interest.  Also as of June 30, 2016, there were no other loans classified for regulatory purposes that management reasonably expects will materially impact future operating results, liquidity, or capital resources.

TrustCo has identified nonaccrual commercial and commercial real estate loans, as well as all loans restructured under a troubled debt restructuring (TDR), as impaired loans.  There were $3.0 million of commercial mortgages and commercial loans classified as impaired as of June 30, 2016, compared to $3.3 million at December 31, 2015.  There were $22.2 million of impaired residential loans at June 30, 2016 and $22.6 million at December 31, 2015.  The average balances of all impaired loans were $24.8 million during the second three months of 2016 and $26.6 million for the full year 2015.

As of June 30, 2016 and December 31, 2015, the Company’s loan portfolio did not include any subprime mortgages or loans acquired with deteriorated credit quality.

At June 30, 2016 there was $4.6 million of foreclosed real estate compared to $6.5 million at December 31, 2015.

Allowance for loan losses: The balance of the allowance for loan losses is maintained at a level that is, in management’s judgment, representative of the amount of probable incurred losses in the loan portfolio.

(dollars in thousands)	As of June 30, 2016					As of December 31, 2015
	Amount		Percent of Loans to Total Loans			Amount		Percent of Loans to Total Loans
Commercial	$	4,922		5.57	%	$	4,347		5.85	%
Real estate - construction		304		0.68	%		365		0.81	%
Real estate mortgage - 1 to 4 family		32,290		82.96	%		33,167		82.14	%
Home equity lines of credit		6,119		10.53	%		6,365		10.91	%
Installment Loans		429		0.25	%		518		0.29	%
	$	44,064		100.00	%	$	44,762		100.00	%

At June 30, 2016, the allowance for loan losses was $44.1 million, compared to $45.6 million at June 30, 2015 and $44.8 million at December 31, 2015.  The allowance represents 1.32% of the loan portfolio as of June 30, 2016 compared to 1.41% at June 30, 2015 and 1.36% at December 31, 2015.

The provision for loan losses was $800 thousand for the quarter ended June 30, 2016 and 2015.  Net chargeoffs for the three-month period ended June 30, 2016 and 2015 were $1.1 million.

During the second quarter of 2016, there were $68 thousand of gross commercial loan chargeoffs and $1.2 million of gross residential mortgage and consumer loan chargeoffs as compared with $50 thousand of gross commercial loan charge-offs and $1.3 million of residential mortgage and consumer loan chargeoffs in the second quarter of 2015.  Gross recoveries during the second quarter of 2016 were $1 thousand for commercial loans and $133 thousand for residential mortgage and consumer loans, compared to $1 thousand for commercial loans and $144 thousand for residential and consumer in the second quarter of 2015.

50

In determining the adequacy of the allowance for loan losses, management reviews the current nonperforming loan portfolio as well as loans that are past due and not yet categorized as nonperforming for reporting purposes.  Also, there are a number of other factors that are taken into consideration, including:

· The magnitude and nature of recent loan chargeoffs and recoveries,

· The growth in the loan portfolio and the implication that it has in relation to the economic climate in the Bank’s market territories, and

· The economic environment in the Upstate New York territory primarily (the Company’s largest geographical market) over the last several years, as well as in the Company’s other market areas.

Management continues to monitor these factors in determining future loan loss provisions or recaptures in relation to the economic environment, loan chargeoffs, recoveries and the level and trends of nonperforming loans.

Liquidity and Interest Rate Sensitivity

TrustCo seeks to obtain favorable sources of funding and to maintain prudent levels of liquid assets in order to satisfy varied liquidity demands.  Management believes that TrustCo’s earnings performance and strong capital position enable the Company to easily secure new sources of liquidity.  The Company actively manages its liquidity through target ratios established under its liquidity policies.  Continual monitoring of both historical and prospective ratios allows TrustCo to employ strategies necessary to maintain adequate liquidity.  Management has also defined various degrees of adverse liquidity situations which could potentially occur and has prepared appropriate contingency plans should such a situation arise.  While TrustCo has not used brokered deposits as a funding source, the Company does have a program in place to do so as a source of contingent liquidity.

The Company uses an industry standard external model as the primary tool to identify, quantify and project changes in interest rates and prepayment speeds taken both from industry sources and internally generated data based upon historical trends in the Bank’s balance sheet. Assumptions based on the historical behavior of deposit rates and balances in relation to changes in market interest rates are also incorporated into the model. This model calculates an economic or fair value amount with respect to non-time deposit categories since these deposits are part of the core deposit products of the Company. The assumptions used are inherently uncertain and, as a result, the model cannot precisely measure the fair value of capital or precisely predict the impact of fluctuations in interest rates on the fair value of capital.

Using this model, the fair value of capital projections as of June 30, 2016 are referenced below. The base case (current rates) scenario shows the present estimate of the fair value of capital assuming no change in the operating environment or operating strategies and no change in interest rates from those existing in the marketplace as of June 30, 2016. The table indicates the impact on the fair value of capital assuming interest rates were to instantaneously increase by 100 bp, 200 bp, 300 bp and 400 bp or to decrease by 100 bp.

51

As of June 30, 2016	Estimated Percentage of Fair value of Capital to Fair value of Assets
+400 BP		19.52%
+300 BP		20.87
+200 BP		22.19
+100 BP		23.23
Current rates		21.14
-100 BP		21.92

Noninterest Income

Total noninterest income for the second quarter of 2016 was $5.2 million, compared to $4.5 million in the prior year period.  The increase of $745 thousand was primarily due to securities gains of $668 thousand in the second quarter of 2016, compared to none in the year-ago period.  For the six months ended June 30, 2016 and 2015 total noninterest income was $9.8 million and $9.1 million, respectively.  The increase was primarily due to a $419 thousand increase in securities gains.

Trustco Financial Services income increased $34 thousand to $1.5 million for the second quarter of 2016 compared to the second quarter of 2015.  The fair value of assets under management were $851 million at June 30, 2016 compared to $842 million at December 31, 2015 and $938 million at June 30, 2015.  The fluctuation in assets was due to market value changes and net account acquisitions/closures.  For both the six months ended June 30 2016 and 2015, Financial Services income was $3.1 million.

The total of fees for other services to customers plus other income was $3.0 million in the second quarter of 2016, up $289 thousand.

Noninterest Expenses

Total noninterest expenses were $24.0 million for the three months ended June 30, 2016, compared to $22.1 million for the three months ended June 30, 2015.  The largest causes of the increase in expenses were a $932 thousand increase in FDIC and other insurance expenses, a $770 thousand increase in salaries and benefits and a $222 thousand increase in ORE expense, net.  The increase in salaries and benefits was primarily due to the increase in full time equivalent headcount from 760 as of June 30, 2015, to 801 as of June 30, 2016.  Professional services expenses were up a modest $32 thousand for the period, however that remains elevated due in large part to legal and consulting fees related to the Formal Agreement with the OCC.  The only significant decreases was a decline of $163 thousand in advertising expense.

Total noninterest expenses were $47.4 million for the six months ended June 30, 2016, compared to $44.0 million for the six months ended June 30, 2015.  The largest causes of the increase in expenses was a $1.9 million increase in FDIC and other insurance expenses, a $1.3 million increase in salaries and benefits and a $671 thousand increase in professional services costs.  The increase in salaries and benefits was primarily due to the noted increase in full time equivalent headcount.  The only significant decreases was a decline of $391 thousand in equipment expense.

52

Income Taxes

In the second quarter of 2016, TrustCo recognized income tax expense of $6.3 million, compared to $6.5 million for the second quarter of 2015.  The effective tax rates were 37.4% and 37.6% for the second quarters of 2016 and 2015, respectively.  For the first six months of 2016, the effective tax rate was 37.2%, compared to 37.5% in the year earlier period, reflecting lower pretax income.

Capital Resources

Consistent with its long-term goal of operating a sound and profitable financial organization, TrustCo strives to maintain strong capital ratios.

Banking regulators have moved towards higher required capital requirements due to the standards included in the Basel III reform measures and the Dodd-Frank Act, as well as a general trend towards reducing risk in the banking system by providing a greater capital margin.

Trustco Bank’s Formal Agreement with the OCC requires the Bank to develop and comply with a capital plan, and the Bank may declare or pay a dividend or make a capital distribution only (a) when the Bank is in compliance with its approved written capital plan, and would remain in compliance with such Capital Plan immediately following the declaration or payment of any dividend or capital distribution and (b) following OCC approval under OCC capital distribution rules.

Total shareholders’ equity at June 30, 2016 was $430.3 million, compared to $402.5 million at June 30, 2015. TrustCo declared a dividend of $0.065625 per share in the second quarter of 2016.  This results in a dividend payout ratio of 59.89% based on second quarter 2016 earnings of $10.5 million.

53

The Bank reported the following capital ratios as of June 30, 2016 and December 31, 2015:

(dollars in thousands)	As of June 30, 2016					Well			Adequately
	Amount		Ratio			Capitalized(1)			Capitalized(1)(2)
Tier 1 leverage capital	$	414,803		8.65	%		5.00	%		4.000	%
Common equity tier 1 capital		414,803		17.32			6.50			5.125
Tier 1 risk-based capital		414,803		17.32			8.00			6.625
Total risk-based capital		444,920		18.58			10.00			8.625

(dollars in thousands)	As of December 31, 2015					Well			Adequately
	Amount		Ratio			Capitalized*			Capitalized*
Tier 1 (core) capital	$	405,506		8.60	%		5.000	%		4.000	%
Common equity tier 1 capital		405,506		17.21			6.500			4.500
Tier 1 risk-based capital		405,506		17.21			8.000			6.000
Total risk-based capital		435,149		18.47			10.000			8.000

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

(2) The June 30, 2016 common equity tier 1, tier 1 risk-based, and total risk-based capital ratios include a transition capital conservation buffer of 0.625 percent

The following is a summary of actual capital amounts and ratios as of June 30, 2016 and December 31, 2015 for TrustCo on a consolidated basis:

(dollars in thousands)	As of June 30, 2016
	Amount		Ratio
Tier 1 leverage capital	$	427,318		8.91	%
Common equity tier 1 capital		427,318		17.83
Tier 1 risk-based capital		427,318		17.83
Total risk-based capital		457,447		19.09

(dollars in thousands)	As of December 31, 2015
	Amount		Ratio
Leverage capital	$	417,538		8.85	%
Common equity tier 1 capital		417,538		17.71
Tier 1 risk-based capital		417,538		17.71
Total risk-based capital		447,193		18.97

In addition, at June 30, 2016, the consolidated equity to total assets ratio was 8.91%, compared to 8.73% at December 31, 2015 and 8.49% at June 30, 2015.

Banks and bank holding companies are subject to regulatory capital requirements administered by federal banking agencies.  Capital adequacy guidelines and, additionally for banks, prompt corrective action regulations, involve quantitative measures of assets, liabilities, and certain off-balance-sheet items calculated under regulatory accounting practices.  Capital amounts and classifications are also subject to qualitative judgments by regulators.  Failure to meet minimum capital requirements can initiate certain mandatory – and possibly additional discretionary – actions by regulators that, if undertaken, could have a direct material effect on the Company’s and the Bank’s financial statements and results of operations.  The final rules implementing Basel Committee on Banking Supervision’s capital guidelines for U.S. banks (Basel III rules) became effective for the Company and the Bank on January 1, 2015 with full compliance with all of the requirements being phased in over a multi-year schedule and fully phased in by January 1, 2019.  The Basel III capital rules will require the Company and the Bank to meet a capital conservation buffer requirement in order to avoid constraints on dividends, equity repurchases and certain compensation. To meet the requirement when it is fully phased in, the organization must maintain an amount of CET1 capital that exceeds the buffer level of 2.5% above each of the minimum risk-weighted asset ratios. The requirement will be phased in over a four year period, starting January 1, 2016, when the amount of such capital must exceed the buffer level of 0.625%. Accordingly, the required minimum conservation buffer will increase to 1.25% on January 1, 2017, 1.875% on January 1, 2018 and 2.5% on January 1, 2019. When the capital conservation buffer requirement is fully phased in, to avoid constraints, a banking organization must maintain the following capital ratios: (1) CET1 to risk-weighted assets more than 7.0%, (ii) Tier 1 capital to risk-weighted assets more than 8.5%, and (iii) total capital (Tier 1 plus Tier 2) to risk-weighted assets more than 10.5%.  The final capital rules impose restrictions on capital distributions and certain discretionary cash bonus payments if the minimum capital conservation buffer is not met.  Prior to January 1, 2015, the Company had not been subject to express regulatory capital requirements.  The Company has chosen to exclude net unrealized gain or loss on available for sale securities in computing regulatory capital.  Management believes as of June 30, 2016, the Company and Bank meet all capital adequacy requirements to which they are subject, including the currently applicable capital conservation buffer of 0.625%.

54

Prompt corrective action regulations provide five classifications:  well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized, and critically undercapitalized, although these terms are not used to represent overall financial condition.  Adequately capitalized institutions must obtain prior regulatory approval to accept brokered deposits.  The federal banking agencies are required to take certain supervisory actions (and may take additional discretionary actions) with respect to an undercapitalized institution or its holding company.  If an institution is classified as undercapitalized, it is required to submit a capital restoration plan to its federal banking regulators and is prohibited from increasing its assets, engaging in a new line of business, acquiring any interest in any company or insured depository institution, or opening or acquiring a new branch office, except under certain circumstances, including the acceptance by the federal banking regulators of a capital restoration plan for the institution.  Furthermore, if an institution is classified as undercapitalized, the federal banking regulators may take certain actions to correct the capital position of the institution; if it is classified as significantly undercapitalized or critically undercapitalized, the federal banking regulators would be required to take one or more prompt corrective actions.  These actions would include, among other things, requiring sales of new securities to bolster capital, improvements in management, limits on interest rates paid, prohibitions on transactions with affiliates, termination of certain risky activities and restrictions on compensation paid to executive officers.  If a bank is classified as critically undercapitalized, the bank must be placed into conservatorship or receivership within 90 days, unless the federal banking regulators determines that other action would better achieve the purposes of the prompt corrective action regime.  Any of the foregoing regulatory actions could have a direct material effect on an institution’s or its holding company’s financial statements.  The Bank’s capital ratios exceed the levels necessary to meet the definition of “well capitalized” for regulatory purposes as of June 30, 2016.

Critical Accounting Policies:

Pursuant to SEC guidance, management of the Company is encouraged to evaluate and disclose those accounting policies judged to be critical policies - those most important to the portrayal of the Company’s financial condition and results, and that require management’s most difficult subjective or complex judgments.

Management considers the accounting policy relating to the allowance for loan losses to be a critical accounting policy given the inherent uncertainty in evaluating the levels of the allowance required to cover the inherent risk of losses in the loan portfolio and the material effect that such judgments can have on the results of operations. Included in Note 1 to the Consolidated Financial Statements contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015 is a description of the significant accounting policies that are utilized by the Company in the preparation of the Consolidated Financial Statements.

55

TrustCo Bank Corp NY

Management's Discussion and Analysis

STATISTICAL DISCLOSURE

I. DISTRIBUTION OF ASSETS, LIABILITIES AND SHAREHOLDERS' EQUITY:

INTEREST RATES AND INTEREST DIFFERENTIAL

The following table summarizes the component distribution of the average balance sheet, related interest income and expense and the average annualized yields on interest earning assets and annualized rates on interest bearing liabilities of TrustCo (adjusted for tax equivalency) for each of the reported periods. Nonaccrual loans are included in loans for this analysis. The average balances of securities available for sale and held to maturity are calculated using amortized costs for these securities.  Included in the average balance of shareholders' equity is the unrealized gain (loss), net of tax, in the available for sale portfolio of $0.7 million in 2016 and ($3.5) million in 2015.  The subtotals contained in the following table are the arithmetic totals of the items contained in that category.  Increases and decreases in interest income and expense  due to both rate and volume have been allocated to the categories of variances (volume and rate) based on the percentage relationship of such variances to each other.

	Three months ended June 30, 2016									Three months ended June 30, 2015
(dollars in thousands)	Average Balance			Interest			Average Rate			Average Balance			Interest			Average Rate			Change in Interest Income/ Expense			Variance Balance Change			Variance Rate Change
Assets
Securities available for sale:
U. S. government sponsored enterprises	$	107,190			404			1.51	%	$	114,279			366			1.28	%	$	38			(125	)		163
Mortgage backed securities and collateralized mortgage obligations-residential		445,162			2,169			1.95	%		441,754			2,276			2.06	%		(107	)		109			(216	)
State and political subdivisions		955			19			7.96	%		1,939			36			7.36	%		(17	)		(35	)		18
Corporate bonds		-			-			-	%		956			-			-	%		-			-			-
Small Business Administration-guaranteed participation securities		87,801			450			2.05	%		98,894			503			2.03	%		(53	)		(85	)		32
Mortgage backed securities and collateralized mortgage obligations-commercial		10,321			38			1.47			10,600			38			1.41			-			(5	)		5
Other		677			4			2.36	%		685			4			2.34	%		-			-			-
Total securities available for sale		652,106			3,084			1.89	%		669,107			3,223			1.93	%		(139	)		(141	)		2
Federal funds sold and other short-term Investments		668,395			832			0.50	%		683,110			423			0.25	%		409			(9	)		418
Held to maturity securities:
Corporate bonds		9,981			154			6.17	%		9,965			154			6.17	%		-			-			-
Mortgage backed securities and collateralized mortgage obligations-residential		42,188			374			3.55	%		55,509			480			3.46	%		(106	)		(186	)		80
Total held to maturity securities		52,169			528			4.05	%		65,474			634			3.87	%		(106	)		(186	)		80
Federal Reserve Bank and Federal Home Loan Bank stock		9,576			118			4.93	%		9,466			118			4.99	%		-			-			-
Commercial loans		198,938			2,563			5.15	%		210,424			2,710			5.15	%		(147	)		(147	)		-
Residential mortgage loans		2,759,024			29,725			4.31	%		2,648,320			29,371			4.44	%		354			4,257			(3,903	)
Home equity lines of credit		354,897			3,179			3.58	%		354,053			3,092			3.50	%		87			8			79
Installment loans		8,316			191			9.19	%		8,226			176			8.60	%		15			16			(1	)
Loans, net of unearned income		3,321,175			35,658			4.29	%		3,221,023			35,349			4.39	%		309			4,134			(3,825	)
Total interest earning assets		4,703,421			40,220			3.42	%		4,648,180			39,747			3.42	%		473			3,799			(3,326	)
Allowance for loan losses		(44,754	)								(46,190	)
Cash & non-interest earning assets		136,724									137,329
Total assets	$	4,795,391								$	4,739,319
Liabilities and shareholders' equity
Deposits:
Interest bearing checking accounts	$	759,546			116			0.06	%	$	706,767			111			0.06	%		5			5			-
Money market accounts		580,100			467			0.32	%		635,347			547			0.35	%		(80	)		(40	)		(40	)
Savings		1,273,575			604			0.19	%		1,249,865			599			0.19	%		5			5			-
Time deposits		1,177,084			2,460			0.84	%		1,190,234			2,500			0.84	%		(40	)		(40	)		-
Total interest bearing deposits		3,790,305			3,647			0.38	%		3,782,213			3,757			0.40	%		(110	)		(70	)		(40	)
Short-term borrowings		181,247			262			0.58	%		182,829			300			0.66	%		(38	)		(3	)		(35	)
Total interest bearing liabilities		3,971,552			3,909			0.39	%		3,965,042			4,057			0.41	%		(148	)		(73	)		(75	)
Demand deposits		370,781									344,982
Other liabilities		27,121									25,591
Shareholders' equity		425,937									403,704
Total liabilities and shareholders' equity	$	4,795,391								$	4,739,319
Net interest income , tax equivalent					36,311									35,690					$	621			3,871			(3,250	)
Net interest spread								3.03	%								3.01	%
Net interest margin (net interest income
to total interest earning assets)								3.09	%								3.07	%
Tax equivalent adjustment					(12	)								(19	)
Net interest income					36,299									35,671

56

TrustCo Bank Corp NY

Management's Discussion and Analysis

STATISTICAL DISCLOSURE

I. DISTRIBUTION OF ASSETS, LIABILITIES AND SHAREHOLDERS' EQUITY:

INTEREST RATES AND INTEREST DIFFERENTIAL

The following table summarizes the component distribution of the average balance sheet, related interest income and expense and the average annualized yields on interest earning assets and annualized rates on interest bearing liabilities of TrustCo (adjusted for tax equivalency) for each of the reported periods. Nonaccrual loans are included in loans for this analysis. The average balances of securities available for sale and held to maturity are calculated using amortized costs for these securities.  Included in the average balance of shareholders' equity is the unrealized loss, net of tax, in the available for sale portfolio of ($0.5) million in 2016 and  ($3.1) million in 2015.  The subtotals contained in the following table are the arithmetic totals of the items contained in that category.  Increases and decreases in interest income and expense  due to both rate and volume have been allocated to the categories of variances (volume and rate) based on the percentage relationship of such variances to each other.

	Six months ended June 30, 2016									Six months ended June 30, 2015
(dollars in thousands)	Average Balance			Interest			Average Rate			Average Balance			Interest			Average Rate			Change in Interest Income/ Expense			Variance Balance Change			Variance Rate Change
Assets
Securities available for sale:
U. S. government sponsored enterprises	$	91,111			659			1.45	%	$	96,172			578			1.20	%	$	81			(81	)		162
Mortgage backed securities and collateralized mortgage obligations-residential		428,831			4,285			2.00	%		459,980			4,669			2.03	%		(384	)		(315	)		(69	)
State and political subdivisions		1,034			41			7.93	%		2,015			74			7.31	%		(33	)		(49	)		16
Corporate bonds		-			-			-	%		1,226			1			0.16	%		(1	)		(1	)		(1	)
Small Business Administration-guaranteed participation securities		89,206			926			2.08	%		100,270			1,025			2.05	%		(99	)		(141	)		42
Mortgage backed securities and collateralized mortgage obligations-commercial		10,357			74			1.43	%		10,635			75			1.41	%		(1	)		(3	)		2
Other		682			8			2.35	%		685			8			2.34	%		-			-			-
Total securities available for sale		621,221			5,993			1.93	%		670,983			6,430			1.92	%		(437	)		(590	)		153
Federal funds sold and other short-term Investments		671,990			1,677			0.50	%		668,269			823			0.25	%		854			5			849
Held to maturity securities:
Corporate bonds		9,979			308			6.17	%		9,964			308			6.17	%		-			-			-
Mortgage backed securities and collateralized mortgage obligations-residential		43,650			775			3.55	%		57,419			958			3.34	%		(183	)		(336	)		153
Total held to maturity securities		53,629			1,083			4.04	%		67,383			1,266			3.76	%		(183	)		(336	)		153
Federal Reserve Bank and Federal Home Loan Bank stock		9,527			238			5.00	%		9,348			234			5.01	%		4			4			(0	)
Commercial loans		200,152			5,180			5.18	%		214,713			5,506			5.13	%		(326	)		(473	)		147
Residential mortgage loans		2,742,918			59,348			4.33	%		2,621,417			58,329			4.46	%		1,019			4,810			(3,791	)
Home equity lines of credit		356,857			6,358			3.56	%		353,161			6,153			3.51	%		205			410			(205	)
Installment loans		8,488			383			9.02	%		8,011			351			8.84	%		32			5			27
Loans, net of unearned income		3,308,415			71,269			4.31	%		3,197,302			70,339			4.41	%		930			4,752			(3,822	)
Total interest earning assets		4,664,782			80,260			3.44	%		4,613,285			79,092			3.44	%		1,168			3,836			(2,668	)
Allowance for loan losses		(45,013	)								(46,392	)
Cash & non-interest earning assets		136,138									138,319
Total assets	$	4,755,907								$	4,705,212
Liabilities and shareholders' equity
Deposits:
Interest bearing checking accounts	$	747,322			230			0.06	%	$	692,445			216			0.06	%		14			14			-
Money market accounts		591,937			962			0.33	%		636,596			1,164			0.37	%		(202	)		(79	)		(123	)
Savings		1,268,021			1,208			0.19	%		1,239,737			1,257			0.20	%		(49	)		62			(111	)
Time deposits		1,155,773			4,833			0.84	%		1,185,363			4,934			0.84	%		(101	)		(101	)		-
Total interest bearing deposits		3,763,053			7,233			0.38	%		3,754,141			7,571			0.41	%		(338	)		(104	)		(234	)
Short-term borrowings		178,683			519			0.58	%		187,560			646			0.69	%		(127	)		(29	)		(98	)
Total interest bearing liabilities		3,941,736			7,752			0.39	%		3,941,701			8,217			0.42	%		(465	)		(133	)		(332	)
Demand deposits		364,503									336,741
Other liabilities		27,019									25,817
Shareholders' equity		422,649									400,953
Total liabilities and shareholders' equity	$	4,755,907								$	4,705,212
Net interest income , tax equivalent					72,508									70,875					$	1,633			3,969			(2,336	)
Net interest spread								3.05	%								3.02	%
Net interest margin (net interest income to total interest earning assets)								3.11	%								3.08	%
Tax equivalent adjustment					(26	)								(39	)
Net interest income					72,482									70,836

57

Item 3. Quantitative and Qualitative Disclosures about Market Risk

As detailed in the Annual Report to Shareholders as of December 31, 2015, the Company is subject to interest rate risk as its principal market risk.  As noted in the Management’s Discussion and Analysis for the three month periods ended June 30, 2016 and 2015, the Company continues to respond to changes in interest rates in a fashion to position the Company to meet short term earning goals and to also allow the Company to respond to changes in interest rates in the future.  Consequently, for the second quarter of 2016, the Company had an average balance of Federal Funds sold and other short-term investments of $668.4 million compared to $683.1 million in the second quarter of 2015.  As investment opportunities present themselves, management plans to invest funds from the Federal Funds sold and other short-term investment portfolio into the securities available for sale, securities held to maturity and loan portfolios.  Additional disclosure of interest rate risk can be found under “Liquidity and Interest Rate Sensitivity” and “Asset/Liability Management” in the Management’s Discussion and Analysis section of this document.

Item 4. Controls and Procedures

An evaluation was carried out under the supervision and with the participation of the Company’s management, including the Chief Executive Officer and Chief Financial Officer, of the effectiveness of the Company’s disclosure controls and procedures as of the end of the period covered by this report.

The Company maintains disclosure controls and procedures (as that term is defined in Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934 (“Exchange Act”)) designed to ensure that information required to be disclosed in the reports that the Company files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the Securities and Exchange Commission.  Based upon this evaluation of those disclosure controls and procedures, the Chief Executive Officer and Chief Financial Officer of the Company concluded, as of the end of the period covered by this report, that the Company’s disclosure controls and procedures were effective to ensure that information required to be disclosed in the reports the Company files and submits under the Exchange Act is recorded, processed, summarized and reported as and when required.

In designing and evaluating the disclosure controls and procedures, management recognized that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives, and management necessarily was required to apply its judgment in evaluating the cost-benefit relationship of possible controls and procedures.  Further, no evaluation of a cost-effective system of controls can provide absolute assurance that all control issues and instances of fraud, if any, will be detected.

There have been no changes in internal control over financial reporting (as defined in Rule 13a-15(f) and 15d-15(f) of the Exchange Act) during the quarter to which this report relates that have materially affected or are reasonably likely to materially affect, the internal control over financial reporting.

58

PART II OTHER INFORMATION

Item 1. Legal Proceedings

None.

Item 1A. Risk Factors

There were no material changes to the risk factors previously disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

None.

Item 3. Defaults Upon Senior Securities

None.

Item 4. Mine Safety

None.

Item 5. Other Information

None.

Item 6. Exhibits

Reg S-K (Item 601) Exhibit No.	Description
10(a)	Trustco Bank Executive Officer Incentive Plan (Amended and Restated as of February 16, 2016), incorporated by reference to exhibit 10(a) to the Form 8-K filed February 17, 2016
15	Crowe Horwath LLP Letter Regarding Unaudited Interim Financial Information
31(a)	Rule 13a-15(e)/15d-15(e) Certification of Robert J. McCormick, principal executive officer.
31(b)	Rule 13a-15(e)/15d-15(e) Certification of Michael M. Ozimek, principal financial officer.
32	Section 1350 Certifications of Robert J. McCormick, principal executive officer and Michael M. Ozimek, principal financial officer.
101.INS	Instance Document
101.SCH	XBRL Taxonomy Extension Schema Document
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document
101.LAB	XBRL Taxonomy Extension Label Linkbase Document
101.PRE	XBRLTaxonomy Extension Presentation Linkbase Document

59

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	TrustCo Bank Corp NY
	By: /s/ Robert J. McCormick
	Robert J. McCormick
	President and Chief Executive Officer
	By: /s/ Michael M. Ozimek
	Michael M. Ozimek
	Senior Vice President
	and Chief Financial Officer
Date:  August 5, 2016

60

Exhibits Index

Reg S-K Exhibit No.	Description
10(a)	Trustco Bank Executive Officer Incentive Plan (Amended and Restated as of February 16, 2016), incorporated by reference to exhibit 10(a) to the Form 8-K filed February 17, 2016
15	Crowe Horwath LLP Letter Regarding Unaudited Interim Financial Information
31(a)	Rule 13a-15(e)/15d-15(e) Certification of Robert J. McCormick, principal executive officer.
31(b)	Rule 13a-15(e)/15d-15(e) Certification of Michael M. Ozimek, principal financial officer.
32	Section 1350 Certifications of Robert J. McCormick, principal executive officer and Michael M. Ozimek,  principal financial officer.
101.INS	Instance Document
101.SCH	XBRL Taxonomy Extension Schema Document
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document
101.LAB	XBRL Taxonomy Extension Label Linkbase Document
101.PRE	XBRLTaxonomy Extension Presentation Linkbase Document

61

EX-15

Exhibit 15

August 5, 2016

Securities and Exchange Commission

450 Fifth Street, NW

Washington, DC 20549

RE: FILING OF THE JUNE 30, 2016 FORM 10-Q FOR TRUSTCO BANK CORP NY

Commissioners:

We are aware that our report dated August 5, 2016, on our reviews of the interim financial information of TrustCo Bank Corp NY as of and for the three-month and six-month periods ended June 30, 2016 and 2015, included in the Company's quarterly report on Form 10-Q for the quarter ended June 30, 2016, is incorporated by reference in its Registration Statements, Form S-8 (No. 33-60409), Form S-8 (No. 333-78811), Form S-8 (No. 333-115689), Form S-8 (No. 333-115674), Form S-8 (No. 333-175868), Form S-8 (No. 333-175867), Form S-8 (No. 333-206685), Form S-3 (No. 333-194923), and Form S-3 (No. 333-196127).

Yours very truly,

/s/ Crowe Horwath LLP

EX-31.A

Exhibit 31(a)

Certification

I, Robert J. McCormick, certify that:

1. I have reviewed this Form 10-Q of TrustCo Bank Corp NY;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:  August 5, 2016 

/s/ Robert J. McCormick

Robert J. McCormick 

President and 

Chief Executive Officer

EX-31.B

Exhibit 31(b)

Certification

I, Michael M. Ozimek, certify that:

1. I have reviewed this Form 10-Q of TrustCo Bank Corp NY;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:  August 5, 2016

/s/ Michael M. Ozimek

Michael M. Ozimek

Senior Vice President and

Chief Financial Officer

EX-32

Exhibit 32

Certification

Pursuant to 18 U.S.C. Section 1350,

As Adopted Pursuant to

Section 906 Of The Sarbanes-Oxley Act of 2002

In connection with the Quarterly Report of TrustCo Bank Corp NY (the “Company”) on Form 10-Q for the period ending June 30, 2016 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), the undersigned hereby certify pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1. The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. The information contained in the Report fairly presents, in all material

respects, the financial condition and result of operations of the Company.

/s/ Robert J. McCormick

Robert J. McCormick

President and

Chief Executive Officer

/s/ Michael M. Ozimek

Michael M. Ozimek

Senior Vice President and

Chief Financial Officer

Date:  August 5, 2016

XML

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2016	Jul. 31, 2016
Document and Entity Information [Abstract]
Entity Registrant Name	TRUSTCO BANK CORP N Y
Entity Central Index Key	0000357301
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		95,599,646
Document Fiscal Year Focus	2016
Document Fiscal Period Focus	Q2
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2016

XML

Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Interest and dividend income:
Interest and fees on loans	$ 35,652	$ 35,343	$ 71,257	$ 70,326
Interest and dividends on securities available for sale:
U. S. government sponsored enterprises	404	366	659	578
State and political subdivisions	13	23	27	48
Mortgage-backed securities and collateralized mortgage obligations-residential	2,169	2,276	4,285	4,669
Corporate bonds	0	0	0	1
Small Business Administration-guaranteed participation securities	450	503	926	1,025
Mortgage-backed securities and collateralized mortgage obligations-commercial	38	38	74	75
Other securities	4	4	8	8
Total interest and dividends on securities available for sale	3,078	3,210	5,979	6,404
Interest on held to maturity securities:
Mortgage-backed securities and collateralized mortgage obligations-residential	374	480	775	958
Corporate bonds	154	154	308	308
Total interest on held to maturity securities	528	634	1,083	1,266
Federal Reserve Bank and Federal Home Loan Bank stock	118	118	238	234
Interest on federal funds sold and other short-term investments	832	423	1,677	823
Total interest income	40,208	39,728	80,234	79,053
Interest on deposits:
Interest-bearing checking	116	111	230	216
Savings	604	599	1,208	1,257
Money market deposit accounts	467	547	962	1,164
Time deposits	2,460	2,500	4,833	4,934
Interest on short-term borrowings	262	300	519	646
Total interest expense	3,909	4,057	7,752	8,217
Net interest income	36,299	35,671	72,482	70,836
Provision for loan losses	800	800	1,600	1,600
Net interest income after provision for loan losses	35,499	34,871	70,882	69,236
Noninterest income:
Trustco financial services income	1,512	1,478	3,117	3,131
Fees for services to customers	2,737	2,691	5,398	5,215
Net gain on securities transactions	668	0	668	249
Other	282	285	588	482
Total noninterest income	5,199	4,454	9,771	9,077
Noninterest expenses:
Salaries and employee benefits	8,934	8,164	17,937	16,645
Net occupancy expense	3,918	3,878	8,006	7,986
Equipment expense	1,840	1,803	3,354	3,745
Professional services	2,098	2,066	4,244	3,573
Outsourced services	1,425	1,425	2,976	2,850
Advertising expense	570	733	1,299	1,333
FDIC and other insurance	1,949	1,017	3,939	2,082
Other real estate expense, net	423	201	942	625
Other	2,817	2,844	4,715	5,149
Total noninterest expenses	23,974	22,131	47,412	43,988
Income before taxes	16,724	17,194	33,241	34,325
Income taxes	6,260	6,467	12,366	12,883
Net income	$ 10,464	$ 10,727	$ 20,875	$ 21,442
Net income per share:
Basic (in dollars per share)	$ 0.110	$ 0.113	$ 0.219	$ 0.226
Diluted (in dollars per share)	$ 0.109	$ 0.113	$ 0.219	$ 0.225

XML

Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Consolidated Statements of Comprehensive Income (Unaudited) [Abstract]
Net income	$ 10,464	$ 10,727	$ 20,875	$ 21,442
Net unrealized holding gain (loss) on securities available for sale	4,565	(5,482)	12,600	(2,173)
Reclassification adjustments for net gain recognized in income	(668)	0	(668)	(249)
Tax effect	(1,559)	2,193	(4,773)	971
Net unrealized gain (loss) on securities available for sale, net of tax	2,338	(3,289)	7,159	(1,451)
Amortization of net actuarial loss (gain)	(50)	15	(17)	10
Amortization of prior service cost (credit)	22	67	45	45
Tax effect	12	(33)	(11)	(22)
Amortization of net actuarial loss (gain) and prior service cost (credit) on pension and postretirement plans, net of tax	(16)	49	17	33
Other comprehensive income (loss), net of tax	2,322	(3,240)	7,176	(1,418)
Comprehensive income	$ 12,786	$ 7,487	$ 28,051	$ 20,024

XML

Consolidated Statements of Financial Condition (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
ASSETS:
Cash and due from banks	$ 39,787	$ 41,698
Federal funds sold and other short term investments	718,609	676,458
Total cash and cash equivalents	758,396	718,156
Securities available for sale	620,506	601,037
Held to maturity securities (fair value 2016 $53,890; 2015 $59,439)	50,684	56,465
Federal Reserve Bank and Federal Home Loan Bank stock	9,579	9,480
Loans, net of deferred fees and costs	3,343,194	3,293,304
Less: Allowance for loan losses	44,064	44,762
Net loans	3,299,130	3,248,542
Bank premises and equipment, net	36,793	37,643
Other assets	55,825	63,669
Total assets	4,830,913	4,734,992
Deposits:
Demand	376,669	365,081
Interest-bearing checking	766,322	754,347
Savings accounts	1,282,006	1,262,194
Money market deposit accounts	577,063	610,826
Time deposits	1,178,567	1,107,930
Total deposits	4,180,627	4,100,378
Short-term borrowings	190,542	191,226
Accrued expenses and other liabilities	29,479	30,078
Total liabilities	4,400,648	4,321,682
SHAREHOLDERS' EQUITY:
Capital stock par value $1; 150,000,000 shares authorized; 99,071,052 and 98,973,452 shares issued at June 30, 2016 and December 31, 2015, respectively	99,071	98,973
Surplus	171,174	171,443
Undivided profits	192,356	184,009
Accumulated other comprehensive income (loss), net of tax	2,395	(4,781)
Treasury stock at cost - 3,578,249 and 3,711,228 shares at June 30, 2016 and December 31, 2015, respectively	(34,731)	(36,334)
Total shareholders' equity	430,265	413,310
Total liabilities and shareholders' equity	$ 4,830,913	$ 4,734,992

XML

Consolidated Statements of Financial Condition (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
ASSETS:
Held to maturity securities, fair value	$ 53,890	$ 59,439
SHAREHOLDERS' EQUITY:
Capital stock, par value (in dollars per share)	$ 1	$ 1
Capital stock, shares authorized (in shares)	150,000,000	150,000,000
Capital stock, shares issued (in shares)	99,071,052	98,973,452
Treasury stock, at cost (in shares)	3,578,249	3,711,228

XML

Consolidated Statements of Changes in Shareholders' Equity (Unaudited) - USD ($) $ in Thousands	Capital Stock [Member]	Surplus [Member]	Undivided Profits [Member]	Accumulated Other Comprehensive (Loss) Income [Member]	Treasury Stock [Member]	Total
Balance at Dec. 31, 2014	$ 98,945	$ 172,353	$ 166,745	$ (4,509)	$ (40,090)	$ 393,444
Net income	0	0	21,442	0	0	21,442
Other comprehensive income (loss), net of tax	0	0	0	(1,418)	0	(1,418)
Cash dividend declared	0	0	(12,466)	0	0	(12,466)
Stock options exercised and related tax benefits	19	80	0	0	0	99
Purchase of treasury stock	0	0	0	0	(99)	(99)
Sale of treasury stock	0	(541)	0	0	1,902	1,361
Stock based compensation expense	0	96	0	0	0	96
Balance at Jun. 30, 2015	98,964	171,988	175,721	(5,927)	(38,287)	402,459
Balance at Mar. 31, 2015				(2,687)
Net income						10,727
Other comprehensive income (loss), net of tax						(3,240)
Balance at Jun. 30, 2015	98,964	171,988	175,721	(5,927)	(38,287)	402,459
Balance at Dec. 31, 2015	98,973	171,443	184,009	(4,781)	(36,334)	413,310
Net income	0	0	20,875	0	0	20,875
Other comprehensive income (loss), net of tax	0	0	0	7,176	0	7,176
Cash dividend declared	0	0	(12,528)	0	0	(12,528)
Stock options exercised and related tax benefits	98	404	0	0	0	502
Purchase of treasury stock	0	0	0	0	(489)	(489)
Sale of treasury stock	0	(785)	0	0	2,092	1,307
Stock based compensation expense	0	112	0	0	0	112
Balance at Jun. 30, 2016	99,071	171,174	192,356	2,395	(34,731)	430,265
Balance at Mar. 31, 2016				73
Net income						10,464
Other comprehensive income (loss), net of tax						2,322
Balance at Jun. 30, 2016	$ 99,071	$ 171,174	$ 192,356	$ 2,395	$ (34,731)	$ 430,265

XML

Consolidated Statements of Changes in Shareholders' Equity (Unaudited) (Parenthetical) - $ / shares	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Consolidated Statements of Changes in Shareholders' Equity (Unaudited) [Abstract]
Cash dividend declared (in dollars per share)	$ 0.1312	$ 0.1312
Stock options exercised and related tax (in shares)	97,600	19,429
Purchase of treasury stock (in shares)	80,769	14,881
Sale of treasury stock (in shares)	213,748	194,139

XML

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Cash flows from operating activities:
Net income	$ 20,875	$ 21,442
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	2,071	2,331
Net gain on sale of other real estate owned	(363)	(302)
Writedown of other real estate owned	606	350
Provision for loan losses	1,600	1,600
Deferred tax expense	1,211	167
Net amortization of securities	2,453	2,912
Stock based compensation expense	112	96
Net gain on sale of bank premises and equipment	(62)	0
Net gain on sales and calls of securities	(668)	(249)
Decrease in taxes receivable	1,996	1,815
Increase in interest receivable	(442)	(7)
Increase (decrease) in interest payable	17	(33)
Increase in other assets	(1,530)	(405)
(Decrease) increase in accrued expenses and other liabilities	(631)	1,072
Total adjustments	6,370	9,347
Net cash provided by operating activities	27,245	30,789
Cash flows from investing activities:
Proceeds from sales and calls of securities available for sale	134,550	78,604
Proceeds from calls and maturities of held to maturity securities	5,781	7,403
Purchases of securities available for sale	(144,422)	(98,092)
Proceeds from maturities of securities available for sale	550	1,499
Purchases of Federal Reserve Bank and Federal Home Loan Bank stock	(99)	(252)
Net increase in loans	(54,636)	(90,557)
Proceeds from dispositions of other real estate owned	4,058	3,870
Proceeds from dispositions of bank premises and equipment	58	66
Purchases of bank premises and equipment	(1,217)	(1,932)
Net cash used in investing activities	(55,377)	(99,391)
Cash flows from financing activities:
Net increase in deposits	80,249	105,200
Net decrease in short-term borrowings	(684)	(18,366)
Proceeds from exercise of stock options and related tax benefits	502	99
Proceeds from sale of treasury stock	1,307	1,361
Purchases of treasury stock	(489)	(99)
Dividends paid	(12,513)	(12,456)
Net cash provided by financing activities	68,372	75,739
Net increase in cash and cash equivalents	40,240	7,137
Cash and cash equivalents at beginning of period	718,156	671,448
Cash and cash equivalents at end of period	758,396	678,585
Cash paid during the year for:
Interest paid	7,735	8,250
Income taxes paid	10,485	11,059
Other non cash items:
Transfer of loans to other real estate owned	2,448	3,585
Increase in dividends payable	15	10
Change in unrealized gain on securities available for sale-gross of deferred taxes	11,932	(2,422)
Change in deferred tax effect on unrealized gain on securities available for sale	(4,773)	971
Amortization of net actuarial loss and prior service credit on pension and postretirement plans	28	55
Change in deferred tax effect of amortization of net actuarial loss and prior service credit	$ (11)	$ (22)

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Financial Statement Presentation

6 Months Ended

Jun. 30, 2016

Financial Statement Presentation [Abstract]

Financial Statement Presentation

(1) Financial Statement Presentation

The unaudited Consolidated Interim Financial Statements of TrustCo Bank Corp NY (the “Company” or “TrustCo”) include the accounts of the subsidiaries after elimination of all significant intercompany accounts and transactions.  Prior period amounts are reclassified when necessary to conform to the current period presentation.  The net income reported for the three months and six months ended June 30, 2016 is not necessarily indicative of the results that may be expected for the year ending December 31, 2016, or any interim periods.  These financial statements consider events that occurred through the date of filing.

In the opinion of the management of the Company, the accompanying unaudited Consolidated Interim Financial Statements contain all recurring adjustments necessary to present fairly the financial position as of June 30, 2016, the results of operations and cash flows for the three months and six months ended June 30, 2016 and 2015.  The accompanying Consolidated Interim Financial Statements should be read in conjunction with the Company’s year-end Consolidated Financial Statements, including notes thereto, which are included in the Company's 2015 Annual Report on Form 10-K for the year ended December 31, 2015.  The accompanying consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and, therefore, do not include all information and notes necessary for a complete presentation of financial position, results of operations and cash flow activity required in accordance with accounting principles generally accepted in the United States.

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Earnings Per Share

6 Months Ended

Jun. 30, 2016

Earnings Per Share [Abstract]

Earnings Per Share

(2) Earnings Per Share

The Company computes earnings per share in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 260, Earnings Per Share (“ASC 260”).   A reconciliation of the component parts of earnings per share for the three months and six months ended June 30, 2016 and 2015 is as follows:

(in thousands, except per share data)	For the three months ended June 30:				For the six months ended June 30:
	2016		2015		2016		2015
Net income	$	10,464		10,727	$	20,875		21,442
Weighted average common shares		95,487		95,056		95,426		95,002
Stock Options		93		134		70		130
Weighted average common shares including potential dilutive shares		95,580		95,190		95,496		95,132
Basic EPS	$	0.110		0.113	$	0.219		0.226
Diluted EPS	$	0.109		0.113	$	0.219		0.225

For the three months and six months ended June 30, 2016, the weighted average number of antidilutive stock options excluded from diluted earnings per share was approximately 1.6 million.  For the three and six months ended June 30, 2015 the weighted average number of antidilutive stock options excluded from diluted earnings per share was approximately 1.4 million.  The stock options are antidilutive because the strike price is greater than the average fair value of the Company’s common stock for the periods presented.

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Benefit Plans

6 Months Ended

Jun. 30, 2016

Benefit Plans [Abstract]

Benefit Plans

(3) Benefit Plans

The table below outlines the components of the Company's net periodic benefit recognized during the three months and six months ended June 30, 2016 and 2015 for its pension and other postretirement benefit plans:

	For the three months ended June 30,
	Pension Benefits						Other Postretirement Benefits
(dollars in thousands)	2016			2015			2016			2015
Service cost	$	16			15			32			39
Interest cost		349			330			61			64
Expected return on plan assets		(681	)		(684	)		(180	)		(180	)
Amortization of net (gain) loss		5			121			(55	)		(106	)
Amortization of prior service cost		-			-			22			67
Net periodic benefit	$	(311	)		(218	)		(120	)		(116	)

	For the six months ended June 30,
	Pension Benefits						Other Postretirement Benefits
(dollars in thousands)	2016			2015			2016			2015
Service cost	$	31			30			64			78
Interest cost		686			660			123			129
Expected return on plan assets		(1,325	)		(1,368	)		(360	)		(361	)
Amortization of net loss (gain)		92			81			(109	)		(71	)
Amortization of prior service cost		-			-			45			45
Net periodic benefit	$	(516	)		(597	)		(237	)		(180	)

The Company does not expect to make contributions to its pension and postretirement benefit plans in 2016.  As of June 30, 2016, no contributions have been made, however, this decision is reviewed each quarter and is subject to change based upon market conditions.

Since 2003, the Company has not subsidized retiree medical insurance premiums.  However, it continues to provide postretirement medical benefits to a limited number of current and retired executives in accordance with the terms of their employment contracts.

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Investment Securities

6 Months Ended

Jun. 30, 2016

Investment Securities [Abstract]

Investment Securities

(4) Investment Securities

(a) Securities available for sale

The amortized cost and fair value of the securities available for sale are as follows:

(dollars in thousands)	June 30, 2016
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
U.S. government sponsored enterprises	$	116,505		90		-		116,595
State and political subdivisions		955		19		-		974
Mortgage backed securities and collateralized mortgage obligations - residential		400,527		3,625		14		404,138
Small Business Administration- guaranteed participation securities		87,102		710		72		87,740
Mortgage backed securities and collateralized mortgage obligations - commercial		10,284		90		-		10,374
Other		650		-		-		650
Total debt securities		616,023		4,534		86		620,471
Equity securities		35		-		-		35
Total securities available for sale	$	616,058		4,534		86		620,506

(dollars in thousands)	December 31, 2015
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
U.S. government sponsored enterprises	$	86,899		19		181		86,737
State and political subdivisions		1,270		20		-		1,290
Mortgage backed securities and collateralized mortgage obligations - residential		416,625		430		5,326		411,729
Small Business Administration- guaranteed participation securities		92,620		-		2,204		90,416
Mortgage backed securities and collateralized mortgage obligations - commercial		10,422		-		242		10,180
Other		650		-		-		650
Total debt securities		608,486		469		7,953		601,002
Equity securities		35		-		-		35
Total securities available for sale	$	608,521		469		7,953		601,037

The following table distributes the debt securities included in the available for sale portfolio as of June 30, 2016, based on the securities’ final maturity.   Actual maturities may differ because of securities prepayments and the right of certain issuers to call or prepay their obligations without penalty.  Securities not due at a single maturity date are presented separately:

(dollars in thousands)	Amortized Cost		Fair Value
Due in one year or less	$	1,407		1,408
Due in one year through five years		76,137		76,219
Due after five years through ten years		40,557		40,583
Due after ten years		9		9
Mortgage backed securities and collateralized mortgage obligations - residential		400,527		404,138
Small Business Administration- guaranteed participation securities		87,102		87,740
Mortgage backed securities and collateralized mortgage obligations - commercial		10,284		10,374
	$	616,023		620,471

Gross unrealized losses on securities available for sale and the related fair values aggregated by the length of time that individual securities have been in an unrealized loss position, were as follows:

(dollars in thousands)	June 30, 2016
	Less than 12 months				12 months or more				Total
	Fair Value		Gross Unreal. Loss		Fair Value		Gross Unreal. Loss		Fair Value		Gross Unreal. Loss
Mortgage backed securities and collateralized mortgage obligations - residential		-		-		15,203		14		15,203		14
Small Business Administration- guaranteed participation securities		-		-		15,376		72		15,376		72
Total	$	-		-		30,579		86		30,579		86

(dollars in thousands)	December 31, 2015
	Less than 12 months				12 months or more				Total
	Fair Value		Gross Unreal. Loss		Fair Value		Gross Unreal. Loss		Fair Value		Gross Unreal. Loss
U.S. government sponsored enterprises	$	41,786		113		9,932		68		51,718		181
Mortgage backed securities and collateralized mortgage obligations - residential		187,605		2,147		167,549		3,179		355,153		5,326
Small Business Administration- guaranteed participation securities		7,529		111		82,888		2,093		90,417		2,204
Mortgage backed securities and collateralized mortgage obligations - commercial		5,553		130		4,627		112		10,180		242
Total	$	242,473		2,501		264,996		5,452		507,468		7,953

The proceeds from sales and calls of securities available for sale, gross realized gains and gross realized losses from sales and calls during the three months and six months ended June 30, 2016 and 2015 are as follows:

(dollars in thousands)	Three months ended June 30,
	2016		2015
Proceeds from sales	$	44,829		-
Proceeds from calls		40,808		27,499
Gross realized gains		668		-
Gross realized losses		-		-

(dollars in thousands)	Six months ended June 30,
	2016		2015
Proceeds from sales	$	44,829		22,945
Proceeds from calls		89,721		55,659
Gross realized gains		668		249
Gross realized losses		-		-

For the three and six months ended June 30, 2016, income tax expense recognized on net gains on sales of securities available for sale was approximately $267 thousand.  For the six months ended June 30, 2015, income tax expense recognized on net gains on sales of securities available for sale was approximately $100 thousand.  There were no sales of securities available for sale during the three months ended June 30, 2015.

(b) Held to maturity securities

The amortized cost and fair value of the held to maturity securities are as follows:

(dollars in thousands)	June 30, 2016
	Amortized Cost		Gross Unrecognized Gains		Gross Unrecognized Losses		Fair Value
Mortgage backed securities and collateralized mortgage obligations - residential	$	40,702		2,676		-		43,378
Corporate bonds		9,982		530		-		10,512
Total held to maturity	$	50,684		3,206		-		53,890

(dollars in thousands)	December 31, 2015
	Amortized Cost		Gross Unrecognized Gains		Gross Unrecognized Losses		Fair Value
Mortgage backed securities and collateralized mortgage obligations - residential	$	46,490		2,308		-		48,798
Corporate bonds		9,975		666		-		10,641
Total held to maturity	$	56,465		2,974		-		59,439

The following table distributes the debt securities included in the held to maturity portfolio as of June 30, 2016, based on the securities’ final maturity.   Actual maturities may differ because of securities prepayments and the right of certain issuers to call or prepay their obligations without penalty.  Securities not due at a single maturity date are presented separately:

(dollars in thousands)	Amortized Cost		Fair Value
Due in one year through five years	$	9,982		10,512
Mortgage backed securities and collateralized mortgage obligations - residential		40,702		43,378
	$	50,684		53,890

There were no held to maturity securities in an unrecognized loss position as of June 30, 2016 or December 31, 2015.

There were no sales or transfers of held to maturity securities during the three months and six months ended June 30, 2016 and 2015.

(c) Other-Than-Temporary Impairment

Management evaluates securities for other-than-temporary impairment (“OTTI”) at least on a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. The investment securities portfolio is evaluated for OTTI by segregating the portfolio by type and applying the appropriate OTTI model. Investment securities classified as available for sale or held to maturity are generally evaluated for OTTI under ASC 320 “Investments – Debt and Equity Securities.”

In determining OTTI under the FASB ASC 320 model, management considers many factors, including: (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near-term prospects of the issuer, (3) whether the market decline was affected by macroeconomic conditions, and (4) whether the Company has the intent to sell the debt security or more likely than not will be required to sell the debt security before its anticipated recovery. The assessment of whether any other-than-temporary decline exists involves a high degree of subjectivity and judgment and is based on the information available to management at a point in time.

When OTTI occurs, the amount of the OTTI recognized in earnings depends on whether management intends to sell the security or it is more likely than not it will be required to sell the security before recovery of its amortized cost basis. If management intends to sell or it is more likely than not it will be required to sell the security before recovery of its amortized cost basis, the OTTI shall be recognized in earnings equal to the entire difference between the investment’s amortized cost basis and its fair value at the balance sheet date. If management does not intend to sell the security and it is not more likely than not that the entity will be required to sell the security before recovery of its amortized cost basis, the OTTI on debt securities shall be separated into the amount representing the credit loss and the amount related to all other factors. The amount of the total OTTI related to the credit loss is determined based on the present value of cash flows expected to be collected and is recognized in earnings. The amount of the total OTTI related to other factors is recognized in other comprehensive income, net of applicable taxes. The previous amortized cost basis less the OTTI recognized in earnings becomes the new amortized cost basis of the investment.

As of June 30, 2016, the Company’s security portfolio included certain securities which were in an unrealized loss position.  The declines in fair value are attributable to changes in interest rates, and not credit quality, and because the Company does not have the intent to sell these securities and it is likely that it will not be required to sell the securities before their anticipated recovery, the Company does not consider these securities to be other-than-temporarily impaired at June 30, 2016.

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Loans and Allowance for Loan Losses

6 Months Ended

Jun. 30, 2016

Loans and Allowance for Loan Losses [Abstract]

Loans and Allowance for Loan Losses

(5) Loans and Allowance for Loan Losses

The following table presents the recorded investment in loans by loan class:

	June 30, 2016
(dollars in thousands)	New York and other states*		Florida		Total
Commercial:
Commercial real estate	$	158,150		14,272		172,422
Other		23,196		80		23,276
Real estate mortgage - 1 to 4 family:
First mortgages		2,116,506		603,612		2,720,118
Home equity loans		56,580		10,253		66,833
Home equity lines of credit		300,952		51,117		352,069
Installment		6,893		1,583		8,476
Total loans, net	$	2,662,277		680,917		3,343,194
Less: Allowance for loan losses						44,064
Net loans					$	3,299,130

	December 31, 2015
(dollars in thousands)	New York and other states*		Florida		Total
Commercial:
Commercial real estate	$	160,965		14,908		175,873
Other		27,449		93		27,542
Real estate mortgage - 1 to 4 family:
First mortgages		2,093,957		566,715		2,660,672
Home equity loans		52,251		8,250		60,501
Home equity lines of credit		308,165		51,160		359,325
Installment		8,000		1,391		9,391
Total loans, net	$	2,650,787		642,517		3,293,304
Less: Allowance for loan losses						44,762
Net loans					$	3,248,542

*Includes New York, New Jersey, Vermont and Massachusetts

At June 30, 2016 and December 31, 2015, the Company had approximately $22.8 million and $26.6 million of real estate construction loans, respectively.  Of the $22.8 million in real estate construction loans at June 30, 2016, approximately $13.4 million are secured by second mortgages to residential borrowers while approximately $9.4 million were to commercial borrowers for residential construction projects. Of the $26.6 million in real estate construction loans at December 31, 2015, approximately $16.0 million are secured by second mortgages to residential borrowers while approximately $10.6 million were to commercial borrowers for residential construction projects. The vast majority of construction loans are in the Company’s New York market.

TrustCo lends in the geographic territory of its branch locations in New York, Florida, Massachusetts, New Jersey and Vermont. Although the loan portfolio is diversified, a portion of its debtors’ ability to repay depends significantly on the economic conditions prevailing in the respective geographic territory.

The following table presents the recorded investment in non-accrual loans by loan class:

	June 30, 2016
(dollars in thousands)	New York and other states		Florida		Total
Loans in non-accrual status:
Commercial:
Commercial real estate	$	2,690		-		2,690
Real estate mortgage - 1 to 4 family:
First mortgages		20,287		1,557		21,844
Home equity loans		86		46		132
Home equity lines of credit		3,186		297		3,483
Installment		49		-		49
Total non-accrual loans		26,298		1,900		28,198
Restructured real estate mortgages - 1 to 4 family		45		-		45
Total nonperforming loans	$	26,343		1,900		28,243

	December 31, 2015
(dollars in thousands)	New York and other states		Florida		Total
Loans in non-accrual status:
Commercial:
Commercial real estate	$	3,024		-		3,024
Other		-		-		-
Real estate mortgage - 1 to 4 family:
First mortgages		19,488		1,488		20,976
Home equity loans		212		-		212
Home equity lines of credit		3,573		329		3,902
Installment		90		8		98
Total non-accrual loans		26,387		1,825		28,212
Restructured real estate mortgages - 1 to 4 family		48		-		48
Total nonperforming loans	$	26,435		1,825		28,260

The Company transfers loans to other real estate owned, at fair value less cost to sell, in the period the Company obtains physical possession of the property (through legal title or through a deed in lieu). As of June 30, 2016 and December 31, 2015, other estate owned included $3.9 million and $5.4 million of residential foreclosed properties, respectively. In addition, non-accrual residential mortgage loans that are in the process of foreclosure had a recorded investment of $13.7 million and $13.2 million as of June 30, 2016 and December 31, 2015, respectively.

The following tables present the aging of the recorded investment in past due loans by loan class and by region as of June 30, 2016 and December 31, 2015:

The following table presents the aging of the recorded investment in past due loans by loan class and by region:

New York and other states:
	June 30, 2016
(dollars in thousands)	30-59 Days Past Due		60-89 Days Past Due		90 + Days Past Due		Total 30+ days Past Due		Current		Total Loans
Commercial:
Commercial real estate	$	580		104		2,060		2,744		155,406		158,150
Other		-		-		-		-		23,196		23,196
Real estate mortgage - 1 to 4 family:
First mortgages		1,896		1,678		12,391		15,965		2,100,541		2,116,506
Home equity loans		109		2		65		176		56,404		56,580
Home equity lines of credit		392		91		1,482		1,965		298,987		300,952
Installment		19		30		45		94		6,799		6,893
Total	$	2,996		1,905		16,043		20,944		2,641,333		2,662,277

Florida:

(dollars in thousands)	30-59 Days Past Due		60-89 Days Past Due		90 + Days Past Due		Total 30+ days Past Due		Current		Total Loans
Commercial:
Commercial real estate	$	-		-		-		-		14,272		14,272
Other		-		-		-		-		80		80
Real estate mortgage - 1 to 4 family:
First mortgages		525		168		1,136		1,829		601,783		603,612
Home equity loans		-		-		-		-		10,253		10,253
Home equity lines of credit		113		50		180		343		50,774		51,117
Installment		1		3		-		4		1,579		1,583
Total	$	639		221		1,316		2,176		678,741		680,917

Total:

(dollars in thousands)	30-59 Days Past Due		60-89 Days Past Due		90 + Days Past Due		Total 30+ days Past Due		Current		Total Loans
Commercial:
Commercial real estate	$	580		104		2,060		2,744		169,678		172,422
Other		-		-		-		-		23,276		23,276
Real estate mortgage - 1 to 4 family:
First mortgages		2,421		1,846		13,527		17,794		2,702,324		2,720,118
Home equity loans		109		2		65		176		66,657		66,833
Home equity lines of credit		505		141		1,662		2,308		349,761		352,069
Installment		20		33		45		98		8,378		8,476
Total	$	3,635		2,126		17,359		23,120		3,320,074		3,343,194

New York and other states:
	December 31, 2015
(dollars in thousands)	30-59 Days Past Due		60-89 Days Past Due		90 + Days Past Due		Total 30+ days Past Due		Current		Total Loans
Commercial:
Commercial real estate	$	-		-		2,340		2,340		158,625		160,965
Other		-		-		-		-		27,449		27,449
Real estate mortgage - 1 to 4 family:
First mortgages		4,321		2,037		12,529		18,887		2,075,070		2,093,957
Home equity loans		43		-		149		192		52,059		52,251
Home equity lines of credit		572		204		1,418		2,194		305,971		308,165
Installment		34		19		88		141		7,859		8,000
Total	$	4,970		2,260		16,524		23,754		2,627,033		2,650,787

Florida:

(dollars in thousands)	30-59 Days Past Due		60-89 Days Past Due		90 + Days Past Due		Total 30+ days Past Due		Current		Total Loans
Commercial:
Commercial real estate	$	10		-		-		10		14,898		14,908
Other		-		-		-		-		93		93
Real estate mortgage - 1 to 4 family:
First mortgages		665		271		851		1,787		564,928		566,715
Home equity loans		-		-		-		-		8,250		8,250
Home equity lines of credit		159		-		240		399		50,761		51,160
Installment		1		21		-		22		1,369		1,391
Total	$	835		292		1,091		2,218		640,299		642,517

Total:

(dollars in thousands)	30-59 Days Past Due		60-89 Days Past Due		90 + Days Past Due		Total 30+ days Past Due		Current		Total Loans
Commercial:
Commercial real estate	$	10		-		2,340		2,350		173,523		175,873
Other		-		-		-		-		27,542		27,542
Real estate mortgage - 1 to 4 family:
First mortgages		4,986		2,308		13,380		20,674		2,639,998		2,660,672
Home equity loans		43		-		149		192		60,309		60,501
Home equity lines of credit		731		204		1,658		2,593		356,732		359,325
Installment		35		40		88		163		9,228		9,391
Total	$	5,805		2,552		17,615		25,972		3,267,332		3,293,304

At June 30, 2016 and December 31, 2015, there were no loans that were 90 days past due and still accruing interest. As a result, non-accrual loans include all loans 90 days or more past due as well as certain loans less than 90 days past due that were placed on non-accrual status for reasons other than delinquent status. There are no commitments to extend further credit on non-accrual or restructured loans.

Activity in the allowance for loan losses by portfolio segment is summarized as follows:

(dollars in thousands)	For the three months ended June 30, 2016
	Commercial		Real Estate Mortgage- 1 to 4 Family		Installment		Total
Balance at beginning of period	$	4,919		39,017		462		44,398
Loans charged off:
New York and other states*		68		1,090		92		1,250
Florida		-		17		1		18
Total loan chargeoffs		68		1,107		93		1,268
Recoveries of loans previously charged off:
New York and other states*		1		117		15		133
Florida		-		1		-		1
Total recoveries		1		118		15		134
Net loans charged off		67		989		78		1,134
Provision for loan losses		194		561		45		800
Balance at end of period	$	5,046		38,589		429		44,064

(dollars in thousands)	For the three months ended June 30, 2015
	Commercial		Real Estate Mortgage- 1 to 4 Family		Installment		Total
Balance at beginning of period	$	4,024		41,529		391		45,944
Loans charged off:
New York and other states*		50		1,066		33		1,149
Florida		-		169		-		169
Total loan chargeoffs		50		1,235		33		1,318
Recoveries of loans previously charged off:
New York and other states*		-		133		9		142
Florida		1		2		-		3
Total recoveries		1		135		9		145
Net loans charged off		49		1,100		24		1,173
Provision (credit) for loan losses		47		658		95		800
Balance at end of period	$	4,022		41,087		462		45,571

(dollars in thousands)	For the six months ended June 30, 2016
	Commercial		Real Estate Mortgage- 1 to 4 Family		Installment		Total
Balance at beginning of period	$	4,491		39,753		518		44,762
Loans charged off:
New York and other states*		332		1,979		173		2,484
Florida		-		101		17		118
Total loan chargeoffs		332		2,080		190		2,602
Recoveries of loans previously charged off:
New York and other states*		41		235		26		302
Florida		-		2		-		2
Total recoveries		41		237		26		304
Net loans charged off		291		1,843		164		2,298
Provision for loan losses		846		679		75		1,600
Balance at end of period	$	5,046		38,589		429		44,064

(dollars in thousands)	For the six months ended June 30, 2015
	Commercial		Real Estate Mortgage- 1 to 4 Family		Installment		Total
Balance at beginning of period	$	4,071		42,088		168		46,327
Loans charged off:
New York and other states*		100		2,180		76		2,356
Florida		-		278		-		278
Total loan chargeoffs		100		2,458		76		2,634
Recoveries of loans previously charged off:
New York and other states*		16		243		15		274
Florida		2		2		-		4
Total recoveries		18		245		15		278
Net loans charged off		82		2,213		61		2,356
Provision for loan losses		33		1,212		355		1,600
Balance at end of period	$	4,022		41,087		462		45,571

The Company has identified non-accrual commercial and commercial real estate loans, as well as all loans restructured under a troubled debt restructuring (“TDR”), as impaired loans. A loan is considered impaired when it is probable that the borrower will be unable to repay the loan according to the original contractual terms of the loan agreement or the loan is restructured as a TDR.

The following tables present the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method as of June 30, 2016 and December 31, 2015:

	June 30, 2016
(dollars in thousands)	Commercial Loans		1-to-4 Family Residential Real Estate		Installment Loans		Total
Allowance for loan losses:
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	-		-		-		-
Collectively evaluated for impairment		5,046		38,589		429		44,064
Total ending allowance balance	$	5,046		38,589		429		44,064
Loans:
Individually evaluated for impairment	$	2,966		22,216		-		25,182
Collectively evaluated for impairment		192,732		3,116,804		8,476		3,318,012
Total ending loans balance	$	195,698		3,139,020		8,476		3,343,194

	December 31, 2015
(dollars in thousands)	Commercial Loans		1-to-4 Family Residential Real Estate		Installment Loans		Total
Allowance for loan losses:
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	-		-		-		-
Collectively evaluated for impairment		4,491		39,753		518		44,762
Total ending allowance balance	$	4,491		39,753		518		44,762
Loans:
Individually evaluated for impairment	$	3,306		22,575		-		25,881
Collectively evaluated for impairment		200,109		3,057,923		9,391		3,267,423
Total ending loans balance	$	203,415		3,080,498		9,391		3,293,304

A loan for which the terms have been modified, and for which the borrower is experiencing financial difficulties, is considered a TDR and is classified as impaired. TDR’s at June 30, 2016 and December 31, 2015 are measured at the present value of estimated future cash flows using the loan’s effective rate at inception or the fair value of the underlying collateral if the loan is considered collateral dependent.

The following tables present impaired loans by loan class as of June 30, 2016 and December 31, 2015:

New York and other states:

	June 30, 2016
(dollars in thousands)	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment
Commercial:
Commercial real estate	$	2,966		3,988		-		3,116
Other		-		-		-		-
Real estate mortgage - 1 to 4 family:
First mortgages		17,439		18,350		-		17,146
Home equity loans		241		277		-		265
Home equity lines of credit		1,907		2,070		-		1,909
Total	$	22,553		24,685		-		22,436

Florida:

(dollars in thousands)	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment
Commercial:
Commercial real estate	$	-		-		-		-
Other		-		-		-		-
Real estate mortgage - 1 to 4 family:
First mortgages		1,925		2,016		-		1,711
Home equity loans		97		97		-		67
Home equity lines of credit		607		679		-		612
Total	$	2,629		2,792		-		2,390

Total:

(dollars in thousands)	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment
Commercial:
Commercial real estate	$	2,966		3,988		-		3,116
Other		-		-		-		-
Real estate mortgage - 1 to 4 family:
First mortgages		19,364		20,366		-		18,857
Home equity loans		338		374		-		332
Home equity lines of credit		2,514		2,749		-		2,521
Total	$	25,182		27,477		-		24,826

New York and other states:

	December 31, 2015
(dollars in thousands)	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment
Commercial:
Commercial real estate	$	3,306		3,996		-		3,608
Other		-		-		-		-
Real estate mortgage - 1 to 4 family:
First mortgages		17,460		18,602		-		18,127
Home equity loans		359		417		-		382
Home equity lines of credit		2,306		2,569		-		2,238
Total	$	23,431		25,584		-		24,355

Florida:

(dollars in thousands)	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment
Commercial:
Commercial real estate	$	-		-		-		-
Other		-		-		-		-
Real estate mortgage - 1 to 4 family:
First mortgages		1,760		1,852		-		1,489
Home equity loans		53		53		-		54
Home equity lines of credit		637		720		-		654
Total	$	2,450		2,625		-		2,197

Total:

(dollars in thousands)	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment
Commercial:
Commercial real estate	$	3,306		3,996		-		3,608
Other		-		-		-		-
Real estate mortgage - 1 to 4 family:
First mortgages		19,220		20,454		-		19,616
Home equity loans		412		470		-		436
Home equity lines of credit		2,943		3,289		-		2,892
Total	$	25,881		28,209		-		26,552

The Company has not committed to lend additional amounts to customers with outstanding loans that are classified as impaired. Interest income recognized on impaired loans was not material during the three months and six months ended June 30, 2016 and 2015.

As of June 30, 2016 and December 31, 2015 impaired loans included approximately $11.0 million and $10.6 million of 1 to 4 family residential real estate loans in accruing status that were identified as TDR’s in accordance with regulatory guidance related to Chapter 7 bankruptcy loans, respectively.

Management evaluates impairment on impaired loans on a quarterly basis. If, during this evaluation, impairment of the loan is identified, a charge off is taken at that time. As a result, as of June 30, 2016 and December 31, 2015, based upon management’s evaluation and due to the sufficiency of chargeoffs taken, none of the allowance for loan losses has been allocated to a specific impaired loan(s).

The following table presents, by class, loans that were modified as TDR’s:

	Three months ended 6/30/2016						Three months ended 6/30/2015
New York and other states*: (dollars in thousands)	Number of Contracts		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment		Number of Contracts		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
Real estate mortgage - 1 to 4 family:
First mortgages		10	$	753	$	753		13	$	1,542	$	1,542
Home equity loans		-		-		-		1		139		139
Home equity lines of credit		5		66		66		2		44		44
Total		15	$	819	$	819		16	$	1,725	$	1,725

Florida:

(dollars in thousands)	Number of Contracts		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment		Number of Contracts		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
Real estate mortgage - 1 to 4 family:
First mortgages		1	$	298	$	298		-	$	-	$	-
Home equity loans		1		46		46		-		-		-
Home equity lines of credit		1		6		6		-		-		-
Total		3	$	350	$	350		-	$	-	$	-

	Six months ended 6/30/2016						Six months ended 6/30/2015
New York and other states*: (dollars in thousands)	Number of Contracts		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment		Number of Contracts		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
Real estate mortgage - 1 to 4 family:
First mortgages		22	$	1,807		1,807		20	$	2,987		2,987
Home equity loans		-		-		-		1		139		139
Home equity lines of credit		9		157		157		2		44		44
Total		31	$	1,964	$	1,964		23	$	3,170	$	3,170

Florida:

(dollars in thousands)	Number of Contracts		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment		Number of Contracts		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
Real estate mortgage - 1 to 4 family:
First mortgages		3	$	525	$	525		1	$	157	$	157
Home equity loans		1		46		46		-		-		-
Home equity lines of credit		1		6		6		2		50		50
Total		5	$	577	$	577		3	$	207	$	207

The addition of these TDR’s did not have a significant impact on the allowance for loan losses.

In situations where the Bank considers a loan modification, management determines whether the borrower is experiencing financial difficulty by performing an evaluation of the probability that the borrower will be in payment default on any of its debt in the foreseeable future without the modification. This evaluation is performed under the Company’s underwriting policy.

Generally, the modification of the terms of loans was the result of the borrower filing for bankruptcy protection. Chapter 13 bankruptcies generally include the deferral of all past due amounts for a period of generally 60 months in accordance with the bankruptcy court order. In the case of Chapter 7 bankruptcies, as previously noted, even though there is no modification of terms, the borrowers’ debt to the Company was discharged and they did not reaffirm the debt.

A loan is considered to be in payment default once it is 90 days contractually past due under the modified terms. In situations involving a borrower filing for Chapter 13 bankruptcy protection, however, a loan is considered to be in payment default once it is 30 days contractually past due, consistent with the treatment by the bankruptcy court.

The following table presents, by class, TDR’s that defaulted during the three months and six months ended June 30, 2016 and 2015 which had been modified within the last twelve months:

	Three months ended 6/30/2016				Three months ended 6/30/2015
New York and other states*: (dollars in thousands)	Number of Contracts		Recorded Investment		Number of Contracts		Recorded Investment
Real estate mortgage - 1 to 4 family:
First mortgages		1	$	107		-	$	-
Total		1	$	107		-	$	-

Florida:

(dollars in thousands)	Number of Contracts		Recorded Investment		Number of Contracts		Recorded Investment
Real estate mortgage - 1 to 4 family:
First mortgages		1	$	46		-	$	-
Total		1	$	46		-	$	-

	Six months ended 6/30/2016				Six months ended 6/30/2015
New York and other states*: (dollars in thousands)	Number of Contracts		Recorded Investment		Number of Contracts		Recorded Investment
Real estate mortgage - 1 to 4 family:
First mortgages		3	$	268		-	$	-
Home equity lines of credit		1		48		-		-
Total		4	$	316		-	$	-

Florida:

(dollars in thousands)	Number of Contracts		Recorded Investment		Number of Contracts		Recorded Investment
Real estate mortgage - 1 to 4 family:
Home equity lines of credit		1	$	46		1	$	50
Total		1	$	46		1	$	50

The TDR’s that subsequently defaulted described above did not have a material impact on the allowance for loan losses.

The Company categorizes non-homogenous loans into risk categories based on relevant information about the ability of borrowers to service their debt, such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. On at least an annual basis, the Company’s loan grading process analyzes non-homogeneous loans, such as commercial and commercial real estate loans, individually by grading the loans based on credit risk.  The loan grades assigned to all loan types are tested by the Company’s internal loan review department in accordance with the Company’s internal loan review policy.

The Company uses the following definitions for classified loans:

Special Mention: Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the Company’s credit position at some future date.

Substandard: Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans classified as such have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected.

Doubtful: Loans classified as doubtful have all the weaknesses inherent in those loans classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. All doubtful loans are considered impaired.

Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be “pass” rated loans.

As of June 30, 2016 and December 31, 2015, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows:

	June 30, 2016
New York and other states:
(dollars in thousands)
	Pass		Classified		Total
Commercial:
Commercial real estate	$	143,955		14,195		158,150
Other		22,472		724		23,196
	$	166,427		14,919		181,346

Florida:

(dollars in thousands)
	Pass		Classified		Total
Commercial:
Commercial real estate	$	14,272		-		14,272
Other		80		-		80
	$	14,352		-		14,352

Total:

(dollars in thousands)
	Pass		Classified		Total
Commercial:
Commercial real estate	$	158,227		14,195		172,422
Other		22,552		724		23,276
	$	180,779		14,919		195,698

	December 31, 2015
New York and other states:
(dollars in thousands)
	Pass		Classified		Total
Commercial:
Commercial real estate	$	145,335		15,630		160,965
Other		26,715		734		27,449
	$	172,050		16,364		188,414

Florida:

(dollars in thousands)
	Pass		Classified		Total
Commercial:
Commercial real estate	$	14,908		-		14,908
Other		93		-		93
	$	15,001		-		15,001

Total:

(dollars in thousands)
	Pass		Classified		Total
Commercial:
Commercial real estate	$	160,243		15,630		175,873
Other		26,808		734		27,542
	$	187,051		16,364		203,415

Included in classified loans in the above tables are impaired loans of $2.7 million and $3.0 million at June 30, 2016 and December 31, 2015, respectively.

For homogeneous loan pools, such as residential mortgages, home equity lines of credit, and installment loans, the Company uses payment status to identify the credit risk in these loan portfolios. Payment status is reviewed on a daily basis by the Bank’s collection area and on a monthly basis with respect to determining the adequacy of the allowance for loan losses. The payment status of these homogeneous pools as of June 30, 2016 and December 31, 2015 is included in the aging of the recorded investment of the past due loans table. In addition, the total nonperforming portion of these homogeneous loan pools as of June 30, 2016 and December 31, 2015 is presented in the non-accrual loans table.

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Fair Value of Financial Instruments

6 Months Ended

Jun. 30, 2016

Fair Value of Financial Instruments [Abstract]

Fair Value of Financial Instruments

(6) Fair Value of Financial Instruments

Fair value measurements (ASC 820) defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820 also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair values:

Level 1 – Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity can access as of the measurement date.

Level 2 – Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.

Level 3 – Significant unobservable inputs that reflect a company’s own assumptions about the value that market participants would use in pricing an asset or liability.

The Company used the following methods and significant assumptions to estimate the fair value of assets and liabilities:

Securities Available for Sale: The fair value of securities available for sale is determined utilizing an independent pricing service for identical assets or significantly similar securities. The pricing service uses a variety of techniques to arrive at fair value including market maker bids, quotes and pricing models. Inputs to the pricing models include recent trades, benchmark interest rates, spreads and actual and projected cash flows. This results in a Level 2 classification of the inputs for determining fair value. Interest and dividend income is recorded on the accrual method and is included in the Consolidated Statements of Income in the respective investment class under total interest and dividend income. Also classified as available for sale securities, the fair value of equity securities is determined by quoted market prices and these are designated as Level 1. The Company does not have any securities that would be designated as level 3.

Other Real Estate Owned: Assets acquired through loan foreclosure are initially recorded at fair value less costs to sell when acquired, establishing a new cost basis. These assets are subsequently accounted for at lower of cost or fair value less estimated costs to sell. Fair value is commonly based on recent real estate appraisals. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process to adjust for differences between the comparable sales and income data available. This results in a Level 3 classification of the inputs for determining fair value.

Impaired Loans: At the time a loan is considered impaired, it is valued at the lower of cost or fair value. Impaired loans carried at fair value generally have had a chargeoff through the allowance for loan losses. For collateral dependent loans, fair value is commonly based on recent real estate appraisals. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process to adjust for differences between the comparable sales and income data available. Such adjustments may be significant and typically result in a Level 3 classification of the inputs for determining fair value. When obtained, non-real estate collateral may be valued using an appraisal, net book value per the borrower’s financial statements, or aging reports, adjusted or discounted based on management’s historical knowledge, changes in market conditions from the time of the valuation, and management’s expertise and knowledge of the client and client’s business, resulting in a Level 3 fair value classification. Impaired loans are evaluated on a quarterly basis for additional impairment and adjusted accordingly.

Indications of value for both collateral-dependent impaired loans and other real estate owned are obtained from third party providers or the Company’s internal Appraisal Department. All indications of value are reviewed for reasonableness by a member of the Appraisal Department for the assumptions and approaches utilized in the appraisal as well as the overall resulting fair value via comparison with independent data sources such as recent market data or industry-wide statistics.

Assets and liabilities measured at fair value under ASC 820 on a recurring basis are summarized below:

	June 30, 2016 Using:
	Carrying Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
(dollars in thousands)
Securities available for sale:
U.S. government sponsored enterprises	$	116,595	$	-	$	116,595	$	-
State and political subdivisions		974		-		974		-
Mortgage backed securities and collateralized mortgage obligations - residential		404,138		-		404,138		-
Small Business Administration- guaranteed participation securities		87,740		-		87,740		-
Mortgage backed securities and collateralized mortgage obligations - commercial		10,374		-		10,374		-
Other securities		685		35		650		-
Total securities available for sale	$	620,506	$	35	$	620,471	$	-

	Fair Value Measurements at December 31, 2015 Using:
	Carrying Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
(dollars in thousands)
Securities available for sale:
U.S. government sponsored enterprises	$	86,737	$	-	$	86,737	$	-
State and political subdivisions		1,290		-		1,290		-
Mortgage backed securities and collateralized mortgage obligations - residential		411,729		-		411,729		-
Small Business Administration- guaranteed participation securities		90,416		-		90,416		-
Mortgage backed securities and collateralized mortgage  obligations - commercial		10,180		-		10,180		-
Other securities		685		35		650		-
Total securities available for sale	$	601,037	$	35	$	601,002	$	-

There were no transfers between Level 1 and Level 2 during the three months and six months ended June 30, 2016 and 2015.

Assets measured at fair value on a non-recurring basis are summarized below:

	Fair Value Measurements at June 30, 2016 Using:
	Carrying Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Valuation technique	Unobservable inputs	Range (Weighted Average)
(dollars in thousands)
Other real estate owned	$	4,602	$	-	$	-	$	4,602	Sales comparison approach	Adjustments for differences between comparable sales		1% - 8% (5%)
Impaired loans:
Commercial real estate		787		-		-		787	Sales comparison approach	Adjustments for differences between comparable sales		3% - 26% (12%)
Real estate mortgage - 1 to 4 family		674		-		-		674	Sales comparison approach	Adjustments for differences between comparable sales		2% - 13% (5%)

	Fair Value Measurements at December 31, 2015 Using:
	Carrying Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Valuation technique	Unobservable inputs	Range (Weighted Average)
(dollars in thousands)
Other real estate owned	$	6,455	$	-	$	-	$	6,455	Sales comparison approach	Adjustments for differences between comparable sales		1% - 10% (4%)
Impaired loans:
Commercial real estate		878		-		-		878	Sales comparison approach	Adjustments for differences between comparable sales		3% - 22% (11%)
Real estate mortgage - 1 to 4 family		3,109		-		-		3,109	Sales comparison approach	Adjustments for differences between comparable sales		0% - 9% (4%)

Other real estate owned, that is carried at fair value less costs to sell was approximately $4.6 million at June 30, 2016 and consisted of $735 thousand of commercial real estate and $3.9 million of residential real estate properties. Valuation charges of $260 thousand and $606 thousand are included in earnings for the three months and six months ended June 30, 2016, respectively.

Of the total impaired loans of $25.2 million at June 30, 2016, $1.5 million are collateral dependent and are carried at fair value measured on a non-recurring basis. Due to the sufficiency of charge offs taken on these loans and the adequacy of the underlying collateral, there were no specific valuation allowances for these loans at June 30, 2016.  Gross charge offs related to commercial impaired loans included in the table above were $68 thousand and $332 thousand for the three months and six months ended June 30, 2016, respectively, while gross charge offs related to residential impaired loans included in the table above amounted to $14 thousand and $126 thousand for the three months and six months ended June 30, 2016, respectively.

Other real estate owned, that is carried at fair value less costs to sell, approximates $6.4 million at December 31, 2015 and consisted of $1.0 million of commercial real estate and $5.4 million of residential real estate properties. A valuation charge of $1.1 million is included in earnings for the year ended December 31, 2015.

Of the total impaired loans of $25.9 million at December 31, 2015, $4.0 million are collateral dependent and are carried at fair value measured on a non-recurring basis. Due to the sufficiency of charge offs taken on these loans and the adequacy of the underlying collateral, there were no specific valuation allowances for these loans at December 31, 2015. Gross charge offs related to commercial impaired loans included in the table above were $641 thousand for the year ended December 31, 2015, while gross charge offs related to residential impaired loans included in the table above amounted to $648 thousand.

In accordance with ASC 825, the carrying amounts and estimated fair values of financial instruments, at June 30, 2016 and December 31, 2015 are as follows:

(dollars in thousands)	Carrying		Fair Value Measurements at June 30, 2016 Using:
	Value		Level 1		Level 2		Level 3		Total
Financial assets:
Cash and cash equivalents	$	758,396		758,396		-		-		758,396
Securities available for sale		620,506		35		620,471		-		620,506
Held to maturity securities		50,684		-		53,890		-		53,890
Federal Reserve Bank and Federal Home Loan Bank stock		9,579		N/A		N/A		N/A		N/A
Net loans		3,299,130		-		-		3,363,721		3,363,721
Accrued interest receivable		10,704		80		2,455		8,169		10,704
Financial liabilities:
Demand deposits		376,669		376,669		-		-		376,669
Interest bearing deposits		3,803,958		2,625,391		1,179,184		-		3,804,575
Short-term borrowings		190,542		-		190,542		-		190,542
Accrued interest payable		518		78		440		-		518

(dollars in thousands)	Carrying		Fair Value Measurements at December 31, 2015 Using:
	Value		Level 1		Level 2		Level 3		Total
Financial assets:
Cash and cash equivalents	$	718,156		718,156		-		-		718,156
Securities available for sale		601,037		35		601,002		-		601,037
Held to maturity securities		56,465		-		59,439		-		59,439
Federal Reserve Bank and Federal Home Loan Bank stock		9,480		N/A		N/A		N/A		N/A
Net loans		3,248,542		-		-		3,279,167		3,279,167
Accrued interest receivable		10,262		80		2,370		7,812		10,262
Financial liabilities:
Demand deposits		365,081		365,081		-		-		365,081
Interest bearing deposits		3,735,297		2,627,367		1,111,240		-		3,738,607
Short-term borrowings		191,226		-		191,226		-		191,226
Accrued interest payable		501		74		427		-		501

The specific estimation methods and assumptions used can have a substantial impact on the resulting fair values of financial instruments. The following is a brief summary of the significant methods and assumptions used in estimating fair values:

Cash and Cash Equivalents

The carrying values of these financial instruments approximate fair values and are classified as Level 1.

Federal Reserve Bank and Federal Home Loan Bank stock

It is not practical to determine the fair value of Federal Reserve Bank and Federal Home Loan Bank stock due to their restrictive nature.

Securities Held to Maturity

Similar to securities available for sale described previously, the fair value of securities held to maturity are determined utilizing an independent pricing service for identical assets or significantly similar securities. The pricing service uses a variety of techniques to arrive at fair value including market maker bids, quotes and pricing models. Inputs to the pricing models include recent trades, benchmark interest rates, spreads and actual and projected cash flows. This results in a Level 2 classification of the inputs for determining fair value. Interest and dividend income is recorded on the accrual method and included in the Consolidated Statements of Income in the respective investment class under total interest and dividend income. The Company does not have any securities that would be designated as Level 3.

Loans

The fair values of all loans are estimated using discounted cash flow analyses with discount rates equal to the interest rates currently being offered for loans with similar terms to borrowers of similar credit quality resulting in a Level 3 classification. Impaired loans are valued at the lower of cost or fair value as described previously. The methods utilized to estimate the fair value of loans do not necessarily represent an exit price.

Deposit Liabilities

The fair values disclosed for noninterest bearing demand deposits, interest bearing checking accounts, savings accounts, and money market accounts are, by definition, equal to the amount payable on demand at the balance sheet date resulting in a Level 1 classification. The carrying value of all variable rate certificates of deposit approximates fair value resulting in a Level 2 classification. The fair value of fixed rate certificates of deposit is estimated using discounted cash flow analyses with discount rates equal to the interest rates currently being offered on certificates of similar size and remaining maturity resulting in a Level 2 classification.

Accrued Interest Receivable/Payable

The carrying amounts of accrued interest approximate fair value resulting in a Level 1, Level 2 or Level 3 classification consistent with the asset or liability that they are associated with.

Short-Term Borrowings and Other Financial Instruments

The fair value of all short-term borrowings, and other financial instruments approximates the carrying value resulting in a Level 2 classification.

Financial Instruments with Off-Balance Sheet Risk

The Company is a party to financial instruments with off-balance sheet risk. Such financial instruments consist of commitments to extend financing and standby letters of credit. If the commitments are exercised by the prospective borrowers, these financial instruments will become interest earning assets of the Company. If the commitments expire, the Company retains any fees paid by the prospective borrower. The fair value of commitments is estimated based upon fees currently charged to enter into similar agreements, taking into consideration the remaining terms of the agreements and the present creditworthiness of the borrower. For fixed rate commitments, the fair value estimation takes into consideration an interest rate risk factor. The fair value of these off-balance sheet items approximates the recorded amounts of the related fees, which are considered to be immaterial.

The Company does not engage in activities involving interest rate swaps, forward placement contracts, or any other instruments commonly referred to as derivatives.

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Accumulated Other Comprehensive (Loss) Income

6 Months Ended

Jun. 30, 2016

Accumulated Other Comprehensive (Loss) Income [Abstract]

Accumulated Other Comprehensive (Loss) Income

(7) Accumulated Other Comprehensive (Loss) Income

The following is a summary of the accumulated other comprehensive (loss) income balances, net of tax:

	Three months ended 6/30/16
(dollars in thousands)	Balance at 4/1/2016			Other Comprehensive Income (loss)- Before Reclassifications		Amount reclassified from Accumulated Other Comprehensive Income			Other Comprehensive Income (loss)- Three months ended 6/30/16			Balance at 6/30/2016
Net unrealized holding gain (loss) on securities available for sale, net of tax	$	329			2,739		(401	)		2,338			2,667
Net change in net actuarial loss (gain) and prior service cost on pension and postretirement benefit plans, net of tax		(256	)		-		(16	)		(16	)		(272	)
Accumulated other comprehensive income (loss), net of tax		73			2,739		(417	)		2,322			2,395

	Three months ended 6/30/2015
(dollars in thousands)	Balance at 4/1/2015			Other Comprehensive Income (loss)- Before Reclassifications			Amount reclassified from Accumulated Other Comprehensive Income		Other Comprehensive Income (loss)- Three months ended 6/30/15			Balance at 6/30/2015
Net unrealized holding gain (loss) on securities available for sale, net of tax	$	(1,855	)		(3,289	)		-		(3,289	)		(5,144	)
Net change in net actuarial loss (gain) and prior service cost on pension and postretirement benefit plans, net of tax		(832	)		-			49		49			(783	)
Accumulated other comprehensive income (loss), net of tax		(2,687	)		(3,289	)		49		(3,240	)		(5,927	)

	Six months ended 6/30/16
(dollars in thousands)	Balance at 1/1/2016			Other Comprehensive Loss- Before Reclassifications		Amount reclassified from Accumulated Other Comprehensive Loss			Other Comprehensive Income (loss)- Six months ended 6/30/16		Balance at 6/30/2016
Net unrealized holding gain (loss) on securities available for sale, net of tax	$	(4,492	)		7,560		(401	)		7,159		2,667
Net change in net actuarial loss (gain) and prior service cost on pension and postretirement benefit plans, net of tax		(289	)		-		17			17		(272	)
Accumulated other comprehensive income (loss), net of tax		(4,781	)		7,560		(384	)		7,176		2,395

	Six months ended 6/30/15
(dollars in thousands)	Balance at 1/1/2015			Other Comprehensive Income (loss)- Before Reclassifications			Amount reclassified from Accumulated Other Comprehensive Income			Other Comprehensive Income (loss)- Six months ended 6/30/15			Balance at 6/30/2015
Net unrealized holding gain (loss) on securities available for sale, net of tax	$	(3,693	)		(1,302	)		(149	)		(1,451	)		(5,144	)
Net change in net actuarial loss (gain) and prior service cost on pension and postretirement benefit plans, net of tax		(816	)		-			33			33			(783	)
Accumulated other comprehensive income (loss), net of tax		(4,509	)		(1,302	)		(116	)		(1,418	)		(5,927	)

The following represents the reclassifications out of accumulated other comprehensive income (loss) for the three months and six months ended June 30, 2016 and 2015:

(dollars in thousands)	Three months ended June 30,						Six months ended June 30,
	2016			2015			2016			2015			Affected Line Item in Statements
Net unrealized holding gains (losses) on securities available for sale
Realized gain on securities transactions	$	668			-		$	668			249		Net gain on securities transactions
Income tax expense		(267	)		-			(267	)		(100	)	Income taxes
Net of tax		401			-			401			149
Amortization of pension and postretirement benefit items
Amortization of net actuarial loss		50			(15	)		17			(10	)	Salaries and employee benefits
Amortization of prior service credit		(22	)		(67	)		(45	)		(45	)	Salaries and employee benefits
Income tax benefit		(12	)		33			11			22		Income taxes
Net of tax		16			(49	)		(17	)		(33	)
Total reclassifications, net of tax	$	417			(49	)	$	384			116

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Agreement with the Office of the Comptroller of the Currency

6 Months Ended

Jun. 30, 2016

Agreement with the Office of the Comptroller of the Currency [Abstract]

Agreement with the Office of the Comptroller of the Currency

(8) Agreement with the Office of the Comptroller of the Currency

On July 21, 2015 Trustco Bank (the “Bank”), the wholly owned subsidiary of TrustCo Bank Corp NY, entered into a formal agreement (the “Agreement”) with the Comptroller of the Currency of the United States (the “OCC”).

The Agreement relates to the findings of the OCC following an examination of the Bank. Since the completion of the examination, the Bank believes it has been working diligently to address the findings of the examination and to develop and implement appropriate formal action plans.

The Agreement requires the Bank to take various actions, within prescribed time frames, with respect to certain areas of the Bank. These include, among others, (i) establishment of a committee of at least three Directors to monitor and coordinate the Bank’s response to the Agreement; (ii) adoption of compliance plans to respond to the Agreement with the assistance of an independent qualified consultant; (iii) evaluation and implementation of improvements in corporate governance with the assistance of an independent qualified consultant; (iv) evaluation and implementation of improvements in internal audit; (v) development of a strategic plan; (vi) development of a revised capital plan consistent with the strategic plan; (vii) development and implementation of improvements to the Bank’s loan review system; and (viii) such other necessary steps to address the issues and questions noted by the OCC in the Agreement.

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New Accounting Pronouncements

6 Months Ended

Jun. 30, 2016

New Accounting Pronouncements [Abstract]

New Accounting Pronouncements

(9) New Accounting Pronouncements

In January 2016, the FASB amended existing guidance to improve accounting standards for financial instruments including clarification and simplification of accounting and disclosure requirements and the requirement for public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes. These amendments are effective for public business entities for annual periods and interim periods within those annual periods beginning after December 15, 2017. The Company is evaluating the impact of these amendments on its consolidated financial statements.

In February 2016, the FASB amended existing guidance to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. These amendments are effective for public business entities for annual periods and interim periods within those annual periods beginning after December 15, 2018. The Company is evaluating the impact of these amendments on its consolidated financial statements.

In March 2016, the FASB amended existing guidance to simplify aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. These amendments are effective for public business entities for annual periods and interim periods within those annual periods beginning after December 15, 2016. The Company is evaluating the impact of these amendments on its consolidated financial statements.

In June 2016, the FASB released Accounting Standards Update 2016-13 Financial Instruments – Credit Losses which amended existing guidance to replace current generally accepted accounting principles used to measure a reporting entity’s credit losses.  The main objective of this update is to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. To achieve this objective, the amendments in this update replace the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. These amendments are effective for public business entities for annual periods and interim periods within those annual periods beginning after December 15, 2019. The Company is evaluating the impact of these amendments on its consolidated financial statements.

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Earnings Per Share (Tables)

6 Months Ended

Jun. 30, 2016

Earnings Per Share [Abstract]

Reconciliation of component parts of earnings per share

A reconciliation of the component parts of earnings per share for the three months and six months ended June 30, 2016 and 2015 is as follows:

(in thousands, except per share data)	For the three months ended June 30:				For the six months ended June 30:
	2016		2015		2016		2015
Net income	$	10,464		10,727	$	20,875		21,442
Weighted average common shares		95,487		95,056		95,426		95,002
Stock Options		93		134		70		130
Weighted average common shares including potential dilutive shares		95,580		95,190		95,496		95,132
Basic EPS	$	0.110		0.113	$	0.219		0.226
Diluted EPS	$	0.109		0.113	$	0.219		0.225

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Benefit Plans (Tables)

6 Months Ended

Jun. 30, 2016

Benefit Plans [Abstract]

Components of Company's net periodic cost

The table below outlines the components of the Company's net periodic benefit recognized during the three months and six months ended June 30, 2016 and 2015 for its pension and other postretirement benefit plans:

	For the three months ended June 30,
	Pension Benefits						Other Postretirement Benefits
(dollars in thousands)	2016			2015			2016			2015
Service cost	$	16			15			32			39
Interest cost		349			330			61			64
Expected return on plan assets		(681	)		(684	)		(180	)		(180	)
Amortization of net (gain) loss		5			121			(55	)		(106	)
Amortization of prior service cost		-			-			22			67
Net periodic benefit	$	(311	)		(218	)		(120	)		(116	)

	For the six months ended June 30,
	Pension Benefits						Other Postretirement Benefits
(dollars in thousands)	2016			2015			2016			2015
Service cost	$	31			30			64			78
Interest cost		686			660			123			129
Expected return on plan assets		(1,325	)		(1,368	)		(360	)		(361	)
Amortization of net loss (gain)		92			81			(109	)		(71	)
Amortization of prior service cost		-			-			45			45
Net periodic benefit	$	(516	)		(597	)		(237	)		(180	)

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Investment Securities (Tables)

6 Months Ended

Jun. 30, 2016

Investment Securities [Abstract]

Amortized cost and fair value of the securities available for sale

The amortized cost and fair value of the securities available for sale are as follows:

(dollars in thousands)	June 30, 2016
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
U.S. government sponsored enterprises	$	116,505		90		-		116,595
State and political subdivisions		955		19		-		974
Mortgage backed securities and collateralized mortgage obligations - residential		400,527		3,625		14		404,138
Small Business Administration- guaranteed participation securities		87,102		710		72		87,740
Mortgage backed securities and collateralized mortgage obligations - commercial		10,284		90		-		10,374
Other		650		-		-		650
Total debt securities		616,023		4,534		86		620,471
Equity securities		35		-		-		35
Total securities available for sale	$	616,058		4,534		86		620,506

(dollars in thousands)	December 31, 2015
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
U.S. government sponsored enterprises	$	86,899		19		181		86,737
State and political subdivisions		1,270		20		-		1,290
Mortgage backed securities and collateralized mortgage obligations - residential		416,625		430		5,326		411,729
Small Business Administration- guaranteed participation securities		92,620		-		2,204		90,416
Mortgage backed securities and collateralized mortgage obligations - commercial		10,422		-		242		10,180
Other		650		-		-		650
Total debt securities		608,486		469		7,953		601,002
Equity securities		35		-		-		35
Total securities available for sale	$	608,521		469		7,953		601,037

Proceeds from sales and calls of securities available for sale, gross realized gains and gross realized losses

The proceeds from sales and calls of securities available for sale, gross realized gains and gross realized losses from sales and calls during the three months and six months ended June 30, 2016 and 2015 are as follows:

(dollars in thousands)	Three months ended June 30,
	2016		2015
Proceeds from sales	$	44,829		-
Proceeds from calls		40,808		27,499
Gross realized gains		668		-
Gross realized losses		-		-

(dollars in thousands)	Six months ended June 30,
	2016		2015
Proceeds from sales	$	44,829		22,945
Proceeds from calls		89,721		55,659
Gross realized gains		668		249
Gross realized losses		-		-

Amortized cost and fair value of the held to maturity securities

The amortized cost and fair value of the held to maturity securities are as follows:

(dollars in thousands)	June 30, 2016
	Amortized Cost		Gross Unrecognized Gains		Gross Unrecognized Losses		Fair Value
Mortgage backed securities and collateralized mortgage obligations - residential	$	40,702		2,676		-		43,378
Corporate bonds		9,982		530		-		10,512
Total held to maturity	$	50,684		3,206		-		53,890

(dollars in thousands)	December 31, 2015
	Amortized Cost		Gross Unrecognized Gains		Gross Unrecognized Losses		Fair Value
Mortgage backed securities and collateralized mortgage obligations - residential	$	46,490		2,308		-		48,798
Corporate bonds		9,975		666		-		10,641
Total held to maturity	$	56,465		2,974		-		59,439

Securities Available for Sale [Member]

Investment [Line Items]

Debt securities based on the securities contractual maturity

The following table distributes the debt securities included in the available for sale portfolio as of June 30, 2016, based on the securities’ final maturity.   Actual maturities may differ because of securities prepayments and the right of certain issuers to call or prepay their obligations without penalty.  Securities not due at a single maturity date are presented separately:

(dollars in thousands)	Amortized Cost		Fair Value
Due in one year or less	$	1,407		1,408
Due in one year through five years		76,137		76,219
Due after five years through ten years		40,557		40,583
Due after ten years		9		9
Mortgage backed securities and collateralized mortgage obligations - residential		400,527		404,138
Small Business Administration- guaranteed participation securities		87,102		87,740
Mortgage backed securities and collateralized mortgage obligations - commercial		10,284		10,374
	$	616,023		620,471

Gross unrealized losses on investment securities and the related fair values aggregated by the length of time that individual securities have been in an unrealized loss position

Gross unrealized losses on securities available for sale and the related fair values aggregated by the length of time that individual securities have been in an unrealized loss position, were as follows:

(dollars in thousands)	June 30, 2016
	Less than 12 months				12 months or more				Total
	Fair Value		Gross Unreal. Loss		Fair Value		Gross Unreal. Loss		Fair Value		Gross Unreal. Loss
Mortgage backed securities and collateralized mortgage obligations - residential		-		-		15,203		14		15,203		14
Small Business Administration- guaranteed participation securities		-		-		15,376		72		15,376		72
Total	$	-		-		30,579		86		30,579		86

(dollars in thousands)	December 31, 2015
	Less than 12 months				12 months or more				Total
	Fair Value		Gross Unreal. Loss		Fair Value		Gross Unreal. Loss		Fair Value		Gross Unreal. Loss
U.S. government sponsored enterprises	$	41,786		113		9,932		68		51,718		181
Mortgage backed securities and collateralized mortgage obligations - residential		187,605		2,147		167,549		3,179		355,153		5,326
Small Business Administration- guaranteed participation securities		7,529		111		82,888		2,093		90,417		2,204
Mortgage backed securities and collateralized mortgage obligations - commercial		5,553		130		4,627		112		10,180		242
Total	$	242,473		2,501		264,996		5,452		507,468		7,953

Held to Maturity Securities [Member]

Investment [Line Items]

Debt securities based on the securities contractual maturity

The following table distributes the debt securities included in the held to maturity portfolio as of June 30, 2016, based on the securities’ final maturity.   Actual maturities may differ because of securities prepayments and the right of certain issuers to call or prepay their obligations without penalty.  Securities not due at a single maturity date are presented separately:

(dollars in thousands)	Amortized Cost		Fair Value
Due in one year through five years	$	9,982		10,512
Mortgage backed securities and collateralized mortgage obligations - residential		40,702		43,378
	$	50,684		53,890

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Loans and Allowance for Loan Losses (Tables)

6 Months Ended

Jun. 30, 2016

Loans and Allowance for Loan Losses [Abstract]

Recorded investment in loans by loan class

The following table presents the recorded investment in loans by loan class:

	June 30, 2016
(dollars in thousands)	New York and other states*		Florida		Total
Commercial:
Commercial real estate	$	158,150		14,272		172,422
Other		23,196		80		23,276
Real estate mortgage - 1 to 4 family:
First mortgages		2,116,506		603,612		2,720,118
Home equity loans		56,580		10,253		66,833
Home equity lines of credit		300,952		51,117		352,069
Installment		6,893		1,583		8,476
Total loans, net	$	2,662,277		680,917		3,343,194
Less: Allowance for loan losses						44,064
Net loans					$	3,299,130

	December 31, 2015
(dollars in thousands)	New York and other states*		Florida		Total
Commercial:
Commercial real estate	$	160,965		14,908		175,873
Other		27,449		93		27,542
Real estate mortgage - 1 to 4 family:
First mortgages		2,093,957		566,715		2,660,672
Home equity loans		52,251		8,250		60,501
Home equity lines of credit		308,165		51,160		359,325
Installment		8,000		1,391		9,391
Total loans, net	$	2,650,787		642,517		3,293,304
Less: Allowance for loan losses						44,762
Net loans					$	3,248,542

Recorded investment in non-accrual loans by loan class

The following table presents the recorded investment in non-accrual loans by loan class:

	June 30, 2016
(dollars in thousands)	New York and other states		Florida		Total
Loans in non-accrual status:
Commercial:
Commercial real estate	$	2,690		-		2,690
Real estate mortgage - 1 to 4 family:
First mortgages		20,287		1,557		21,844
Home equity loans		86		46		132
Home equity lines of credit		3,186		297		3,483
Installment		49		-		49
Total non-accrual loans		26,298		1,900		28,198
Restructured real estate mortgages - 1 to 4 family		45		-		45
Total nonperforming loans	$	26,343		1,900		28,243

	December 31, 2015
(dollars in thousands)	New York and other states		Florida		Total
Loans in non-accrual status:
Commercial:
Commercial real estate	$	3,024		-		3,024
Other		-		-		-
Real estate mortgage - 1 to 4 family:
First mortgages		19,488		1,488		20,976
Home equity loans		212		-		212
Home equity lines of credit		3,573		329		3,902
Installment		90		8		98
Total non-accrual loans		26,387		1,825		28,212
Restructured real estate mortgages - 1 to 4 family		48		-		48
Total nonperforming loans	$	26,435		1,825		28,260

Aging of the recorded investment in past due loans by loan class and by region

The following table presents the aging of the recorded investment in past due loans by loan class and by region:

New York and other states:
	June 30, 2016
(dollars in thousands)	30-59 Days Past Due		60-89 Days Past Due		90 + Days Past Due		Total 30+ days Past Due		Current		Total Loans
Commercial:
Commercial real estate	$	580		104		2,060		2,744		155,406		158,150
Other		-		-		-		-		23,196		23,196
Real estate mortgage - 1 to 4 family:
First mortgages		1,896		1,678		12,391		15,965		2,100,541		2,116,506
Home equity loans		109		2		65		176		56,404		56,580
Home equity lines of credit		392		91		1,482		1,965		298,987		300,952
Installment		19		30		45		94		6,799		6,893
Total	$	2,996		1,905		16,043		20,944		2,641,333		2,662,277

Florida:

(dollars in thousands)	30-59 Days Past Due		60-89 Days Past Due		90 + Days Past Due		Total 30+ days Past Due		Current		Total Loans
Commercial:
Commercial real estate	$	-		-		-		-		14,272		14,272
Other		-		-		-		-		80		80
Real estate mortgage - 1 to 4 family:
First mortgages		525		168		1,136		1,829		601,783		603,612
Home equity loans		-		-		-		-		10,253		10,253
Home equity lines of credit		113		50		180		343		50,774		51,117
Installment		1		3		-		4		1,579		1,583
Total	$	639		221		1,316		2,176		678,741		680,917

Total:

(dollars in thousands)	30-59 Days Past Due		60-89 Days Past Due		90 + Days Past Due		Total 30+ days Past Due		Current		Total Loans
Commercial:
Commercial real estate	$	580		104		2,060		2,744		169,678		172,422
Other		-		-		-		-		23,276		23,276
Real estate mortgage - 1 to 4 family:
First mortgages		2,421		1,846		13,527		17,794		2,702,324		2,720,118
Home equity loans		109		2		65		176		66,657		66,833
Home equity lines of credit		505		141		1,662		2,308		349,761		352,069
Installment		20		33		45		98		8,378		8,476
Total	$	3,635		2,126		17,359		23,120		3,320,074		3,343,194

New York and other states:
	December 31, 2015
(dollars in thousands)	30-59 Days Past Due		60-89 Days Past Due		90 + Days Past Due		Total 30+ days Past Due		Current		Total Loans
Commercial:
Commercial real estate	$	-		-		2,340		2,340		158,625		160,965
Other		-		-		-		-		27,449		27,449
Real estate mortgage - 1 to 4 family:
First mortgages		4,321		2,037		12,529		18,887		2,075,070		2,093,957
Home equity loans		43		-		149		192		52,059		52,251
Home equity lines of credit		572		204		1,418		2,194		305,971		308,165
Installment		34		19		88		141		7,859		8,000
Total	$	4,970		2,260		16,524		23,754		2,627,033		2,650,787

Florida:

(dollars in thousands)	30-59 Days Past Due		60-89 Days Past Due		90 + Days Past Due		Total 30+ days Past Due		Current		Total Loans
Commercial:
Commercial real estate	$	10		-		-		10		14,898		14,908
Other		-		-		-		-		93		93
Real estate mortgage - 1 to 4 family:
First mortgages		665		271		851		1,787		564,928		566,715
Home equity loans		-		-		-		-		8,250		8,250
Home equity lines of credit		159		-		240		399		50,761		51,160
Installment		1		21		-		22		1,369		1,391
Total	$	835		292		1,091		2,218		640,299		642,517

Total:

(dollars in thousands)	30-59 Days Past Due		60-89 Days Past Due		90 + Days Past Due		Total 30+ days Past Due		Current		Total Loans
Commercial:
Commercial real estate	$	10		-		2,340		2,350		173,523		175,873
Other		-		-		-		-		27,542		27,542
Real estate mortgage - 1 to 4 family:
First mortgages		4,986		2,308		13,380		20,674		2,639,998		2,660,672
Home equity loans		43		-		149		192		60,309		60,501
Home equity lines of credit		731		204		1,658		2,593		356,732		359,325
Installment		35		40		88		163		9,228		9,391
Total	$	5,805		2,552		17,615		25,972		3,267,332		3,293,304

Activity in the allowance for loan losses by portfolio segment

Activity in the allowance for loan losses by portfolio segment is summarized as follows:

(dollars in thousands)	For the three months ended June 30, 2016
	Commercial		Real Estate Mortgage- 1 to 4 Family		Installment		Total
Balance at beginning of period	$	4,919		39,017		462		44,398
Loans charged off:
New York and other states*		68		1,090		92		1,250
Florida		-		17		1		18
Total loan chargeoffs		68		1,107		93		1,268
Recoveries of loans previously charged off:
New York and other states*		1		117		15		133
Florida		-		1		-		1
Total recoveries		1		118		15		134
Net loans charged off		67		989		78		1,134
Provision for loan losses		194		561		45		800
Balance at end of period	$	5,046		38,589		429		44,064

(dollars in thousands)	For the three months ended June 30, 2015
	Commercial		Real Estate Mortgage- 1 to 4 Family		Installment		Total
Balance at beginning of period	$	4,024		41,529		391		45,944
Loans charged off:
New York and other states*		50		1,066		33		1,149
Florida		-		169		-		169
Total loan chargeoffs		50		1,235		33		1,318
Recoveries of loans previously charged off:
New York and other states*		-		133		9		142
Florida		1		2		-		3
Total recoveries		1		135		9		145
Net loans charged off		49		1,100		24		1,173
Provision (credit) for loan losses		47		658		95		800
Balance at end of period	$	4,022		41,087		462		45,571

(dollars in thousands)	For the six months ended June 30, 2016
	Commercial		Real Estate Mortgage- 1 to 4 Family		Installment		Total
Balance at beginning of period	$	4,491		39,753		518		44,762
Loans charged off:
New York and other states*		332		1,979		173		2,484
Florida		-		101		17		118
Total loan chargeoffs		332		2,080		190		2,602
Recoveries of loans previously charged off:
New York and other states*		41		235		26		302
Florida		-		2		-		2
Total recoveries		41		237		26		304
Net loans charged off		291		1,843		164		2,298
Provision for loan losses		846		679		75		1,600
Balance at end of period	$	5,046		38,589		429		44,064

(dollars in thousands)	For the six months ended June 30, 2015
	Commercial		Real Estate Mortgage- 1 to 4 Family		Installment		Total
Balance at beginning of period	$	4,071		42,088		168		46,327
Loans charged off:
New York and other states*		100		2,180		76		2,356
Florida		-		278		-		278
Total loan chargeoffs		100		2,458		76		2,634
Recoveries of loans previously charged off:
New York and other states*		16		243		15		274
Florida		2		2		-		4
Total recoveries		18		245		15		278
Net loans charged off		82		2,213		61		2,356
Provision for loan losses		33		1,212		355		1,600
Balance at end of period	$	4,022		41,087		462		45,571

Allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method

The following tables present the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method as of June 30, 2016 and December 31, 2015:

	June 30, 2016
(dollars in thousands)	Commercial Loans		1-to-4 Family Residential Real Estate		Installment Loans		Total
Allowance for loan losses:
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	-		-		-		-
Collectively evaluated for impairment		5,046		38,589		429		44,064
Total ending allowance balance	$	5,046		38,589		429		44,064
Loans:
Individually evaluated for impairment	$	2,966		22,216		-		25,182
Collectively evaluated for impairment		192,732		3,116,804		8,476		3,318,012
Total ending loans balance	$	195,698		3,139,020		8,476		3,343,194

	December 31, 2015
(dollars in thousands)	Commercial Loans		1-to-4 Family Residential Real Estate		Installment Loans		Total
Allowance for loan losses:
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	-		-		-		-
Collectively evaluated for impairment		4,491		39,753		518		44,762
Total ending allowance balance	$	4,491		39,753		518		44,762
Loans:
Individually evaluated for impairment	$	3,306		22,575		-		25,881
Collectively evaluated for impairment		200,109		3,057,923		9,391		3,267,423
Total ending loans balance	$	203,415		3,080,498		9,391		3,293,304

Impaired loans by loan class

The following tables present impaired loans by loan class as of June 30, 2016 and December 31, 2015:

New York and other states:

	June 30, 2016
(dollars in thousands)	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment
Commercial:
Commercial real estate	$	2,966		3,988		-		3,116
Other		-		-		-		-
Real estate mortgage - 1 to 4 family:
First mortgages		17,439		18,350		-		17,146
Home equity loans		241		277		-		265
Home equity lines of credit		1,907		2,070		-		1,909
Total	$	22,553		24,685		-		22,436

Florida:

(dollars in thousands)	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment
Commercial:
Commercial real estate	$	-		-		-		-
Other		-		-		-		-
Real estate mortgage - 1 to 4 family:
First mortgages		1,925		2,016		-		1,711
Home equity loans		97		97		-		67
Home equity lines of credit		607		679		-		612
Total	$	2,629		2,792		-		2,390

Total:

(dollars in thousands)	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment
Commercial:
Commercial real estate	$	2,966		3,988		-		3,116
Other		-		-		-		-
Real estate mortgage - 1 to 4 family:
First mortgages		19,364		20,366		-		18,857
Home equity loans		338		374		-		332
Home equity lines of credit		2,514		2,749		-		2,521
Total	$	25,182		27,477		-		24,826

New York and other states:

	December 31, 2015
(dollars in thousands)	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment
Commercial:
Commercial real estate	$	3,306		3,996		-		3,608
Other		-		-		-		-
Real estate mortgage - 1 to 4 family:
First mortgages		17,460		18,602		-		18,127
Home equity loans		359		417		-		382
Home equity lines of credit		2,306		2,569		-		2,238
Total	$	23,431		25,584		-		24,355

Florida:

(dollars in thousands)	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment
Commercial:
Commercial real estate	$	-		-		-		-
Other		-		-		-		-
Real estate mortgage - 1 to 4 family:
First mortgages		1,760		1,852		-		1,489
Home equity loans		53		53		-		54
Home equity lines of credit		637		720		-		654
Total	$	2,450		2,625		-		2,197

Total:

(dollars in thousands)	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment
Commercial:
Commercial real estate	$	3,306		3,996		-		3,608
Other		-		-		-		-
Real estate mortgage - 1 to 4 family:
First mortgages		19,220		20,454		-		19,616
Home equity loans		412		470		-		436
Home equity lines of credit		2,943		3,289		-		2,892
Total	$	25,881		28,209		-		26,552

Modified loans by class that were determined to be TDR's

The following table presents, by class, loans that were modified as TDR’s:

	Three months ended 6/30/2016						Three months ended 6/30/2015
New York and other states*: (dollars in thousands)	Number of Contracts		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment		Number of Contracts		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
Real estate mortgage - 1 to 4 family:
First mortgages		10	$	753	$	753		13	$	1,542	$	1,542
Home equity loans		-		-		-		1		139		139
Home equity lines of credit		5		66		66		2		44		44
Total		15	$	819	$	819		16	$	1,725	$	1,725

Florida:

(dollars in thousands)	Number of Contracts		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment		Number of Contracts		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
Real estate mortgage - 1 to 4 family:
First mortgages		1	$	298	$	298		-	$	-	$	-
Home equity loans		1		46		46		-		-		-
Home equity lines of credit		1		6		6		-		-		-
Total		3	$	350	$	350		-	$	-	$	-

	Six months ended 6/30/2016						Six months ended 6/30/2015
New York and other states*: (dollars in thousands)	Number of Contracts		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment		Number of Contracts		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
Real estate mortgage - 1 to 4 family:
First mortgages		22	$	1,807		1,807		20	$	2,987		2,987
Home equity loans		-		-		-		1		139		139
Home equity lines of credit		9		157		157		2		44		44
Total		31	$	1,964	$	1,964		23	$	3,170	$	3,170

Florida:

(dollars in thousands)	Number of Contracts		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment		Number of Contracts		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
Real estate mortgage - 1 to 4 family:
First mortgages		3	$	525	$	525		1	$	157	$	157
Home equity loans		1		46		46		-		-		-
Home equity lines of credit		1		6		6		2		50		50
Total		5	$	577	$	577		3	$	207	$	207

Loans by class modified as TDR's for which there was a payment default

The following table presents, by class, TDR’s that defaulted during the three months and six months ended June 30, 2016 and 2015 which had been modified within the last twelve months:

	Three months ended 6/30/2016				Three months ended 6/30/2015
New York and other states*: (dollars in thousands)	Number of Contracts		Recorded Investment		Number of Contracts		Recorded Investment
Real estate mortgage - 1 to 4 family:
First mortgages		1	$	107		-	$	-
Total		1	$	107		-	$	-

Florida:

(dollars in thousands)	Number of Contracts		Recorded Investment		Number of Contracts		Recorded Investment
Real estate mortgage - 1 to 4 family:
First mortgages		1	$	46		-	$	-
Total		1	$	46		-	$	-

	Six months ended 6/30/2016				Six months ended 6/30/2015
New York and other states*: (dollars in thousands)	Number of Contracts		Recorded Investment		Number of Contracts		Recorded Investment
Real estate mortgage - 1 to 4 family:
First mortgages		3	$	268		-	$	-
Home equity lines of credit		1		48		-		-
Total		4	$	316		-	$	-

Florida:

(dollars in thousands)	Number of Contracts		Recorded Investment		Number of Contracts		Recorded Investment
Real estate mortgage - 1 to 4 family:
Home equity lines of credit		1	$	46		1	$	50
Total		1	$	46		1	$	50

Risk category of loans by class of loans

As of June 30, 2016 and December 31, 2015, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows:

	June 30, 2016
New York and other states:
(dollars in thousands)
	Pass		Classified		Total
Commercial:
Commercial real estate	$	143,955		14,195		158,150
Other		22,472		724		23,196
	$	166,427		14,919		181,346

Florida:

(dollars in thousands)
	Pass		Classified		Total
Commercial:
Commercial real estate	$	14,272		-		14,272
Other		80		-		80
	$	14,352		-		14,352

Total:

(dollars in thousands)
	Pass		Classified		Total
Commercial:
Commercial real estate	$	158,227		14,195		172,422
Other		22,552		724		23,276
	$	180,779		14,919		195,698

	December 31, 2015
New York and other states:
(dollars in thousands)
	Pass		Classified		Total
Commercial:
Commercial real estate	$	145,335		15,630		160,965
Other		26,715		734		27,449
	$	172,050		16,364		188,414

Florida:

(dollars in thousands)
	Pass		Classified		Total
Commercial:
Commercial real estate	$	14,908		-		14,908
Other		93		-		93
	$	15,001		-		15,001

Total:

(dollars in thousands)
	Pass		Classified		Total
Commercial:
Commercial real estate	$	160,243		15,630		175,873
Other		26,808		734		27,542
	$	187,051		16,364		203,415

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Fair Value of Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2016

Fair Value of Financial Instruments [Abstract]

Assets and liabilities measured at fair value on a recurring basis

Assets and liabilities measured at fair value under ASC 820 on a recurring basis are summarized below:

	June 30, 2016 Using:
	Carrying Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
(dollars in thousands)
Securities available for sale:
U.S. government sponsored enterprises	$	116,595	$	-	$	116,595	$	-
State and political subdivisions		974		-		974		-
Mortgage backed securities and collateralized mortgage obligations - residential		404,138		-		404,138		-
Small Business Administration- guaranteed participation securities		87,740		-		87,740		-
Mortgage backed securities and collateralized mortgage obligations - commercial		10,374		-		10,374		-
Other securities		685		35		650		-
Total securities available for sale	$	620,506	$	35	$	620,471	$	-

	Fair Value Measurements at December 31, 2015 Using:
	Carrying Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
(dollars in thousands)
Securities available for sale:
U.S. government sponsored enterprises	$	86,737	$	-	$	86,737	$	-
State and political subdivisions		1,290		-		1,290		-
Mortgage backed securities and collateralized mortgage obligations - residential		411,729		-		411,729		-
Small Business Administration- guaranteed participation securities		90,416		-		90,416		-
Mortgage backed securities and collateralized mortgage  obligations - commercial		10,180		-		10,180		-
Other securities		685		35		650		-
Total securities available for sale	$	601,037	$	35	$	601,002	$	-

Assets measured at fair value on a non-recurring basis

Assets measured at fair value on a non-recurring basis are summarized below:

	Fair Value Measurements at June 30, 2016 Using:
	Carrying Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Valuation technique	Unobservable inputs	Range (Weighted Average)
(dollars in thousands)
Other real estate owned	$	4,602	$	-	$	-	$	4,602	Sales comparison approach	Adjustments for differences between comparable sales		1% - 8% (5%)
Impaired loans:
Commercial real estate		787		-		-		787	Sales comparison approach	Adjustments for differences between comparable sales		3% - 26% (12%)
Real estate mortgage - 1 to 4 family		674		-		-		674	Sales comparison approach	Adjustments for differences between comparable sales		2% - 13% (5%)

	Fair Value Measurements at December 31, 2015 Using:
	Carrying Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Valuation technique	Unobservable inputs	Range (Weighted Average)
(dollars in thousands)
Other real estate owned	$	6,455	$	-	$	-	$	6,455	Sales comparison approach	Adjustments for differences between comparable sales		1% - 10% (4%)
Impaired loans:
Commercial real estate		878		-		-		878	Sales comparison approach	Adjustments for differences between comparable sales		3% - 22% (11%)
Real estate mortgage - 1 to 4 family		3,109		-		-		3,109	Sales comparison approach	Adjustments for differences between comparable sales		0% - 9% (4%)

Carrying amounts and estimated fair values of financial instruments

In accordance with ASC 825, the carrying amounts and estimated fair values of financial instruments, at June 30, 2016 and December 31, 2015 are as follows:

(dollars in thousands)	Carrying		Fair Value Measurements at June 30, 2016 Using:
	Value		Level 1		Level 2		Level 3		Total
Financial assets:
Cash and cash equivalents	$	758,396		758,396		-		-		758,396
Securities available for sale		620,506		35		620,471		-		620,506
Held to maturity securities		50,684		-		53,890		-		53,890
Federal Reserve Bank and Federal Home Loan Bank stock		9,579		N/A		N/A		N/A		N/A
Net loans		3,299,130		-		-		3,363,721		3,363,721
Accrued interest receivable		10,704		80		2,455		8,169		10,704
Financial liabilities:
Demand deposits		376,669		376,669		-		-		376,669
Interest bearing deposits		3,803,958		2,625,391		1,179,184		-		3,804,575
Short-term borrowings		190,542		-		190,542		-		190,542
Accrued interest payable		518		78		440		-		518

(dollars in thousands)	Carrying		Fair Value Measurements at December 31, 2015 Using:
	Value		Level 1		Level 2		Level 3		Total
Financial assets:
Cash and cash equivalents	$	718,156		718,156		-		-		718,156
Securities available for sale		601,037		35		601,002		-		601,037
Held to maturity securities		56,465		-		59,439		-		59,439
Federal Reserve Bank and Federal Home Loan Bank stock		9,480		N/A		N/A		N/A		N/A
Net loans		3,248,542		-		-		3,279,167		3,279,167
Accrued interest receivable		10,262		80		2,370		7,812		10,262
Financial liabilities:
Demand deposits		365,081		365,081		-		-		365,081
Interest bearing deposits		3,735,297		2,627,367		1,111,240		-		3,738,607
Short-term borrowings		191,226		-		191,226		-		191,226
Accrued interest payable		501		74		427		-		501

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Accumulated Other Comprehensive (Loss) Income (Tables)

6 Months Ended

Jun. 30, 2016

Accumulated Other Comprehensive (Loss) Income [Abstract]

Accumulated other comprehensive income (loss), net of tax

The following is a summary of the accumulated other comprehensive (loss) income balances, net of tax:

	Three months ended 6/30/16
(dollars in thousands)	Balance at 4/1/2016			Other Comprehensive Income (loss)- Before Reclassifications		Amount reclassified from Accumulated Other Comprehensive Income			Other Comprehensive Income (loss)- Three months ended 6/30/16			Balance at 6/30/2016
Net unrealized holding gain (loss) on securities available for sale, net of tax	$	329			2,739		(401	)		2,338			2,667
Net change in net actuarial loss (gain) and prior service cost on pension and postretirement benefit plans, net of tax		(256	)		-		(16	)		(16	)		(272	)
Accumulated other comprehensive income (loss), net of tax		73			2,739		(417	)		2,322			2,395

	Three months ended 6/30/2015
(dollars in thousands)	Balance at 4/1/2015			Other Comprehensive Income (loss)- Before Reclassifications			Amount reclassified from Accumulated Other Comprehensive Income		Other Comprehensive Income (loss)- Three months ended 6/30/15			Balance at 6/30/2015
Net unrealized holding gain (loss) on securities available for sale, net of tax	$	(1,855	)		(3,289	)		-		(3,289	)		(5,144	)
Net change in net actuarial loss (gain) and prior service cost on pension and postretirement benefit plans, net of tax		(832	)		-			49		49			(783	)
Accumulated other comprehensive income (loss), net of tax		(2,687	)		(3,289	)		49		(3,240	)		(5,927	)

	Six months ended 6/30/16
(dollars in thousands)	Balance at 1/1/2016			Other Comprehensive Loss- Before Reclassifications		Amount reclassified from Accumulated Other Comprehensive Loss			Other Comprehensive Income (loss)- Six months ended 6/30/16		Balance at 6/30/2016
Net unrealized holding gain (loss) on securities available for sale, net of tax	$	(4,492	)		7,560		(401	)		7,159		2,667
Net change in net actuarial loss (gain) and prior service cost on pension and postretirement benefit plans, net of tax		(289	)		-		17			17		(272	)
Accumulated other comprehensive income (loss), net of tax		(4,781	)		7,560		(384	)		7,176		2,395

	Six months ended 6/30/15
(dollars in thousands)	Balance at 1/1/2015			Other Comprehensive Income (loss)- Before Reclassifications			Amount reclassified from Accumulated Other Comprehensive Income			Other Comprehensive Income (loss)- Six months ended 6/30/15			Balance at 6/30/2015
Net unrealized holding gain (loss) on securities available for sale, net of tax	$	(3,693	)		(1,302	)		(149	)		(1,451	)		(5,144	)
Net change in net actuarial loss (gain) and prior service cost on pension and postretirement benefit plans, net of tax		(816	)		-			33			33			(783	)
Accumulated other comprehensive income (loss), net of tax		(4,509	)		(1,302	)		(116	)		(1,418	)		(5,927	)

Reclassifications out of accumulated other comprehensive income (loss)

The following represents the reclassifications out of accumulated other comprehensive income (loss) for the three months and six months ended June 30, 2016 and 2015:

(dollars in thousands)	Three months ended June 30,						Six months ended June 30,
	2016			2015			2016			2015			Affected Line Item in Statements
Net unrealized holding gains (losses) on securities available for sale
Realized gain on securities transactions	$	668			-		$	668			249		Net gain on securities transactions
Income tax expense		(267	)		-			(267	)		(100	)	Income taxes
Net of tax		401			-			401			149
Amortization of pension and postretirement benefit items
Amortization of net actuarial loss		50			(15	)		17			(10	)	Salaries and employee benefits
Amortization of prior service credit		(22	)		(67	)		(45	)		(45	)	Salaries and employee benefits
Income tax benefit		(12	)		33			11			22		Income taxes
Net of tax		16			(49	)		(17	)		(33	)
Total reclassifications, net of tax	$	417			(49	)	$	384			116

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Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Reconciliation of the component parts of earnings per share [Abstract]
Net income	$ 10,464	$ 10,727	$ 20,875	$ 21,442
Weighted average common shares (in shares)	95,487	95,056	95,426	95,002
Stock Options (in shares)	93	134	70	130
Weighted average common shares including potential dilutive shares (in shares)	95,580	95,190	95,496	95,132
Basic EPS (in dollars per share)	$ 0.110	$ 0.113	$ 0.219	$ 0.226
Diluted EPS (in dollars per share)	$ 0.109	$ 0.113	$ 0.219	$ 0.225
Stock Options [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Weighted average number of antidilutive stock options excluded from diluted earnings per share (in shares)	1,600	1,400	1,600	1,400

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Benefit Plans (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Components of net periodic benefit cost [Abstract]
Contribution made to pension and postretirement plans			$ 0
Pension Benefits [Member]
Components of net periodic benefit cost [Abstract]
Service cost	$ 16	$ 15	31	$ 30
Interest cost	349	330	686	660
Expected return on plan assets	(681)	(684)	(1,325)	(1,368)
Amortization of net (gain) loss	5	121	92	81
Amortization of prior service cost	0	0	0	0
Net periodic benefit	(311)	(218)	(516)	(597)
Other Postretirement Benefits [Member]
Components of net periodic benefit cost [Abstract]
Service cost	32	39	64	78
Interest cost	61	64	123	129
Expected return on plan assets	(180)	(180)	(360)	(361)
Amortization of net (gain) loss	(55)	(106)	(109)	(71)
Amortization of prior service cost	22	67	45	45
Net periodic benefit	$ (120)	$ (116)	$ (237)	$ (180)

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Investment Securities, Available-for-sale Securities (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Amortized cost and fair value of the securities available for sale [Abstract]
Amortized Cost	$ 616,058	$ 608,521
Gross Unrealized Gains	4,534	469
Gross Unrealized Losses	86	7,953
Fair Value	620,506	601,037
U. S. Government Sponsored Enterprises [Member]
Amortized cost and fair value of the securities available for sale [Abstract]
Amortized Cost	116,505	86,899
Gross Unrealized Gains	90	19
Gross Unrealized Losses	0	181
Fair Value	116,595	86,737
State and Political Subdivisions [Member]
Amortized cost and fair value of the securities available for sale [Abstract]
Amortized Cost	955	1,270
Gross Unrealized Gains	19	20
Gross Unrealized Losses	0	0
Fair Value	974	1,290
Mortgage Backed Securities and Collateralized Mortgage Obligations-Residential [Member]
Amortized cost and fair value of the securities available for sale [Abstract]
Amortized Cost	400,527	416,625
Gross Unrealized Gains	3,625	430
Gross Unrealized Losses	14	5,326
Fair Value	404,138	411,729
Small Business Administration-Guaranteed Participation Securities [Member]
Amortized cost and fair value of the securities available for sale [Abstract]
Amortized Cost	87,102	92,620
Gross Unrealized Gains	710	0
Gross Unrealized Losses	72	2,204
Fair Value	87,740	90,416
Mortgage Backed Securities and Collateralized Mortgage Obligations-Commercial [Member]
Amortized cost and fair value of the securities available for sale [Abstract]
Amortized Cost	10,284	10,422
Gross Unrealized Gains	90	0
Gross Unrealized Losses	0	242
Fair Value	10,374	10,180
Other [Member]
Amortized cost and fair value of the securities available for sale [Abstract]
Amortized Cost	650	650
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	0
Fair Value	650	650
Debt Securities [Member]
Amortized cost and fair value of the securities available for sale [Abstract]
Amortized Cost	616,023	608,486
Gross Unrealized Gains	4,534	469
Gross Unrealized Losses	86	7,953
Fair Value	620,471	601,002
Equity Securities [Member]
Amortized cost and fair value of the securities available for sale [Abstract]
Amortized Cost	35	35
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	0
Fair Value	$ 35	$ 35

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Investment Securities, Available-for-sale Securities, Maturities (Details) $ in Thousands	Jun. 30, 2016 USD ($)
Amortized Cost [Abstract]
Due in one year or less	$ 1,407
Due in one year through five years	76,137
Due after five years through ten years	40,557
Due after ten years	9
Amortized Cost	616,023
Fair Value [Abstract]
Due in one year or less	1,408
Due in one year through five years	76,219
Due after five years through ten years	40,583
Due after ten years	9
Fair Value	620,471
Mortgage-Backed Securities and Collateralized Mortgage Obligations-Residential [Member]
Amortized Cost [Abstract]
Securities, amortized cost	400,527
Fair Value [Abstract]
Securities, fair value	404,138
Small Business Administration-Guaranteed Participation Securities [Member]
Amortized Cost [Abstract]
Securities, amortized cost	87,102
Fair Value [Abstract]
Securities, fair value	87,740
Mortgage-Backed Securities and Collateralized Mortgage Obligations-Commercial [Member]
Amortized Cost [Abstract]
Securities, amortized cost	10,284
Fair Value [Abstract]
Securities, fair value	$ 10,374

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Investment Securities, Available-for-sale Securities, Gross Unrealized Loss Position (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Available for sale securities unrealized loss position - Fair Value [Abstract]
Less than 12 months - Fair Value	$ 0	$ 242,473
12 months or more - Fair Value	30,579	264,996
Total - Fair Value	30,579	507,468
Available for sale securities unrealized loss position - Gross Unrealized Loss [Abstract]
Less than 12 months - Gross Unrealized Loss	0	2,501
12 months or more - Gross Unrealized Loss	86	5,452
Total - Gross Unrealized Loss	86	7,953
U. S. Government Sponsored Enterprises [Member]
Available for sale securities unrealized loss position - Fair Value [Abstract]
Less than 12 months - Fair Value		41,786
12 months or more - Fair Value		9,932
Total - Fair Value		51,718
Available for sale securities unrealized loss position - Gross Unrealized Loss [Abstract]
Less than 12 months - Gross Unrealized Loss		113
12 months or more - Gross Unrealized Loss		68
Total - Gross Unrealized Loss		181
Mortgage Backed Securities and Collateralized Mortgage Obligations-Residential [Member]
Available for sale securities unrealized loss position - Fair Value [Abstract]
Less than 12 months - Fair Value	0	187,605
12 months or more - Fair Value	15,203	167,549
Total - Fair Value	15,203	355,153
Available for sale securities unrealized loss position - Gross Unrealized Loss [Abstract]
Less than 12 months - Gross Unrealized Loss	0	2,147
12 months or more - Gross Unrealized Loss	14	3,179
Total - Gross Unrealized Loss	14	5,326
Small Business Administration-Guaranteed Participation Securities [Member]
Available for sale securities unrealized loss position - Fair Value [Abstract]
Less than 12 months - Fair Value	0	7,529
12 months or more - Fair Value	15,376	82,888
Total - Fair Value	15,376	90,417
Available for sale securities unrealized loss position - Gross Unrealized Loss [Abstract]
Less than 12 months - Gross Unrealized Loss	0	111
12 months or more - Gross Unrealized Loss	72	2,093
Total - Gross Unrealized Loss	$ 72	2,204
Mortgage Backed Securities and Collateralized Mortgage Obligations-Commercial [Member]
Available for sale securities unrealized loss position - Fair Value [Abstract]
Less than 12 months - Fair Value		5,553
12 months or more - Fair Value		4,627
Total - Fair Value		10,180
Available for sale securities unrealized loss position - Gross Unrealized Loss [Abstract]
Less than 12 months - Gross Unrealized Loss		130
12 months or more - Gross Unrealized Loss		112
Total - Gross Unrealized Loss		$ 242

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Investment Securities, Available-for-sale Securities, Transaction Information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Proceeds from sales and calls of securities available for sale, gross realized gains and gross realized losses [Abstract]
Proceeds from sales	$ 44,829	$ 0	$ 44,829	$ 22,945
Proceeds from calls	40,808	27,499	89,721	55,659
Gross realized gains	668	0	668	249
Gross realized losses	0	0	0	0
Income tax expense recognized on net gains on sales and calls of securities available for sale	267		267	100
Sales and transfers of held to maturity securities	$ 0	$ 0	$ 0	$ 0

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Investment Securities, Held-to-maturity Securities (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Amortized cost and fair value of the held to maturity securities [Abstract]
Amortized Cost	$ 50,684	$ 56,465
Gross Unrecognized Gains	3,206	2,974
Gross Unrecognized Losses	0	0
Fair Value	53,890	59,439
Mortgage Backed Securities and Collateralized Mortgage Obligations-Residential [Member]
Amortized cost and fair value of the held to maturity securities [Abstract]
Amortized Cost	40,702	46,490
Gross Unrecognized Gains	2,676	2,308
Gross Unrecognized Losses	0	0
Fair Value	43,378	48,798
Corporate Bonds [Member]
Amortized cost and fair value of the held to maturity securities [Abstract]
Amortized Cost	9,982	9,975
Gross Unrecognized Gains	530	666
Gross Unrecognized Losses	0	0
Fair Value	$ 10,512	$ 10,641

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Investment Securities, Held-to-maturity Securities, Maturity (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Amortized Cost [Abstract]
Due in one year through five years	$ 9,982
Amortized Cost	50,684	$ 56,465
Fair Value [Abstract]
Due in one year through five years	10,512
Fair Value	53,890	59,439
Mortgage-Backed Securities and Collateralized Mortgage Obligations-Residential [Member]
Amortized Cost [Abstract]
Securities, amortized cost	40,702
Fair Value [Abstract]
Securities, fair value	43,378
Fair Value	$ 43,378	$ 48,798

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Loans and Allowance for Loan Losses (Details) - USD ($) $ in Thousands		Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014
Loans and Leases Receivable, Net Amount [Abstract]
Total loans, net		$ 3,343,194		$ 3,293,304
Less: Allowance for loan losses		44,064	$ 44,398	44,762	$ 45,571	$ 45,944	$ 46,327
Net loans		3,299,130		3,248,542
Real Estate Construction Loans [Member]
Loans and Leases Receivable, Net Amount [Abstract]
Total loans, net		22,800		26,600
Residential Borrowers [Member]
Loans and Leases Receivable, Net Amount [Abstract]
Total loans, net		13,400		16,000
Commercial Borrowers Residential Purpose [Member]
Loans and Leases Receivable, Net Amount [Abstract]
Total loans, net		9,400		10,600
Commercial [Member]
Loans and Leases Receivable, Net Amount [Abstract]
Total loans, net		195,698		203,415
Less: Allowance for loan losses		5,046	4,919	4,491	4,022	4,024	4,071
Commercial [Member] | Commercial Real Estate [Member]
Loans and Leases Receivable, Net Amount [Abstract]
Total loans, net		172,422		175,873
Commercial [Member] | Other [Member]
Loans and Leases Receivable, Net Amount [Abstract]
Total loans, net		23,276		27,542
Real Estate Mortgage - 1 to 4 Family [Member]
Loans and Leases Receivable, Net Amount [Abstract]
Total loans, net		3,139,020		3,080,498
Less: Allowance for loan losses		38,589	39,017	39,753	41,087	41,529	42,088
Real Estate Mortgage - 1 to 4 Family [Member] | First Mortgages [Member]
Loans and Leases Receivable, Net Amount [Abstract]
Total loans, net		2,720,118		2,660,672
Real Estate Mortgage - 1 to 4 Family [Member] | Home Equity Loans [Member]
Loans and Leases Receivable, Net Amount [Abstract]
Total loans, net		66,833		60,501
Real Estate Mortgage - 1 to 4 Family [Member] | Home Equity Lines of Credit [Member]
Loans and Leases Receivable, Net Amount [Abstract]
Total loans, net		352,069		359,325
Installment [Member]
Loans and Leases Receivable, Net Amount [Abstract]
Total loans, net		8,476		9,391
Less: Allowance for loan losses		429	$ 462	518	$ 462	$ 391	$ 168
New York and Other States [Member]
Loans and Leases Receivable, Net Amount [Abstract]
Total loans, net	[1]	2,662,277		2,650,787
New York and Other States [Member] | Commercial [Member]
Loans and Leases Receivable, Net Amount [Abstract]
Total loans, net		181,346		188,414
New York and Other States [Member] | Commercial [Member] | Commercial Real Estate [Member]
Loans and Leases Receivable, Net Amount [Abstract]
Total loans, net	[1]	158,150		160,965
New York and Other States [Member] | Commercial [Member] | Other [Member]
Loans and Leases Receivable, Net Amount [Abstract]
Total loans, net	[1]	23,196		27,449
New York and Other States [Member] | Real Estate Mortgage - 1 to 4 Family [Member] | First Mortgages [Member]
Loans and Leases Receivable, Net Amount [Abstract]
Total loans, net	[1]	2,116,506		2,093,957
New York and Other States [Member] | Real Estate Mortgage - 1 to 4 Family [Member] | Home Equity Loans [Member]
Loans and Leases Receivable, Net Amount [Abstract]
Total loans, net	[1]	56,580		52,251
New York and Other States [Member] | Real Estate Mortgage - 1 to 4 Family [Member] | Home Equity Lines of Credit [Member]
Loans and Leases Receivable, Net Amount [Abstract]
Total loans, net	[1]	300,952		308,165
New York and Other States [Member] | Installment [Member]
Loans and Leases Receivable, Net Amount [Abstract]
Total loans, net	[1]	6,893		8,000
Florida [Member]
Loans and Leases Receivable, Net Amount [Abstract]
Total loans, net		680,917		642,517
Florida [Member] | Commercial [Member]
Loans and Leases Receivable, Net Amount [Abstract]
Total loans, net		14,352		15,001
Florida [Member] | Commercial [Member] | Commercial Real Estate [Member]
Loans and Leases Receivable, Net Amount [Abstract]
Total loans, net		14,272		14,908
Florida [Member] | Commercial [Member] | Other [Member]
Loans and Leases Receivable, Net Amount [Abstract]
Total loans, net		80		93
Florida [Member] | Real Estate Mortgage - 1 to 4 Family [Member] | First Mortgages [Member]
Loans and Leases Receivable, Net Amount [Abstract]
Total loans, net		603,612		566,715
Florida [Member] | Real Estate Mortgage - 1 to 4 Family [Member] | Home Equity Loans [Member]
Loans and Leases Receivable, Net Amount [Abstract]
Total loans, net		10,253		8,250
Florida [Member] | Real Estate Mortgage - 1 to 4 Family [Member] | Home Equity Lines of Credit [Member]
Loans and Leases Receivable, Net Amount [Abstract]
Total loans, net		51,117		51,160
Florida [Member] | Installment [Member]
Loans and Leases Receivable, Net Amount [Abstract]
Total loans, net		$ 1,583		$ 1,391

[1] Includes New York, New Jersey, Vermont and Massachusetts.

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Loans and Allowance for Loan Losses, Non-accrual Loans, By Loan Class (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Non accrual loans by loan class [Abstract]
Total non-accrual loans	$ 28,198	$ 28,212
Restructured real estate mortgages - 1 to 4 family	45	48
Total nonperforming loans	28,243	28,260
Other real estate owned	3,900	5,400
Residential Real Estate [Member]
Non accrual loans by loan class [Abstract]
Non accrual residential mortgage loans in the process of foreclosure	13,700	13,200
Commercial [Member] | Commercial Real Estate [Member]
Non accrual loans by loan class [Abstract]
Total non-accrual loans	2,690	3,024
Commercial [Member] | Other [Member]
Non accrual loans by loan class [Abstract]
Total non-accrual loans		0
Real Estate Mortgage - 1 to 4 Family [Member] | First Mortgages [Member]
Non accrual loans by loan class [Abstract]
Total non-accrual loans	21,844	20,976
Real Estate Mortgage - 1 to 4 Family [Member] | Home Equity Loans [Member]
Non accrual loans by loan class [Abstract]
Total non-accrual loans	132	212
Real Estate Mortgage - 1 to 4 Family [Member] | Home Equity Lines of Credit [Member]
Non accrual loans by loan class [Abstract]
Total non-accrual loans	3,483	3,902
Installment [Member]
Non accrual loans by loan class [Abstract]
Total non-accrual loans	49	98
New York and Other States [Member]
Non accrual loans by loan class [Abstract]
Total non-accrual loans	26,298	26,387
Restructured real estate mortgages - 1 to 4 family	45	48
Total nonperforming loans	26,343	26,435
New York and Other States [Member] | Commercial [Member] | Commercial Real Estate [Member]
Non accrual loans by loan class [Abstract]
Total non-accrual loans	2,690	3,024
New York and Other States [Member] | Commercial [Member] | Other [Member]
Non accrual loans by loan class [Abstract]
Total non-accrual loans		0
New York and Other States [Member] | Real Estate Mortgage - 1 to 4 Family [Member] | First Mortgages [Member]
Non accrual loans by loan class [Abstract]
Total non-accrual loans	20,287	19,488
New York and Other States [Member] | Real Estate Mortgage - 1 to 4 Family [Member] | Home Equity Loans [Member]
Non accrual loans by loan class [Abstract]
Total non-accrual loans	86	212
New York and Other States [Member] | Real Estate Mortgage - 1 to 4 Family [Member] | Home Equity Lines of Credit [Member]
Non accrual loans by loan class [Abstract]
Total non-accrual loans	3,186	3,573
New York and Other States [Member] | Installment [Member]
Non accrual loans by loan class [Abstract]
Total non-accrual loans	49	90
Florida [Member]
Non accrual loans by loan class [Abstract]
Total non-accrual loans	1,900	1,825
Restructured real estate mortgages - 1 to 4 family	0	0
Total nonperforming loans	1,900	1,825
Florida [Member] | Commercial [Member] | Commercial Real Estate [Member]
Non accrual loans by loan class [Abstract]
Total non-accrual loans	0	0
Florida [Member] | Commercial [Member] | Other [Member]
Non accrual loans by loan class [Abstract]
Total non-accrual loans		0
Florida [Member] | Real Estate Mortgage - 1 to 4 Family [Member] | First Mortgages [Member]
Non accrual loans by loan class [Abstract]
Total non-accrual loans	1,557	1,488
Florida [Member] | Real Estate Mortgage - 1 to 4 Family [Member] | Home Equity Loans [Member]
Non accrual loans by loan class [Abstract]
Total non-accrual loans	46	0
Florida [Member] | Real Estate Mortgage - 1 to 4 Family [Member] | Home Equity Lines of Credit [Member]
Non accrual loans by loan class [Abstract]
Total non-accrual loans	297	329
Florida [Member] | Installment [Member]
Non accrual loans by loan class [Abstract]
Total non-accrual loans	$ 0	$ 8

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Loans and Allowance for Loan Losses, Past Due (Details) - USD ($) $ in Thousands		6 Months Ended	12 Months Ended
		Jun. 30, 2016	Dec. 31, 2015
Aging of the recorded investment in past due loans [Abstract]
Total 30+ days Past Due		$ 23,120	$ 25,972
Current		3,320,074	3,267,332
Total loans		3,343,194	3,293,304
Loans that are 90 days past due and still accruing interest		$ 0	$ 0
Number of days past due		90 days	90 days
30-59 Days Past Due [Member]
Aging of the recorded investment in past due loans [Abstract]
Total 30+ days Past Due		$ 3,635	$ 5,805
60-89 Days Past Due [Member]
Aging of the recorded investment in past due loans [Abstract]
Total 30+ days Past Due		2,126	2,552
90+ Days Past Due [Member]
Aging of the recorded investment in past due loans [Abstract]
Total 30+ days Past Due		17,359	17,615
Commercial [Member]
Aging of the recorded investment in past due loans [Abstract]
Total loans		195,698	203,415
Commercial [Member] | Commercial Real Estate [Member]
Aging of the recorded investment in past due loans [Abstract]
Total 30+ days Past Due		2,744	2,350
Current		169,678	173,523
Total loans		172,422	175,873
Commercial [Member] | Commercial Real Estate [Member] | 30-59 Days Past Due [Member]
Aging of the recorded investment in past due loans [Abstract]
Total 30+ days Past Due		580	10
Commercial [Member] | Commercial Real Estate [Member] | 60-89 Days Past Due [Member]
Aging of the recorded investment in past due loans [Abstract]
Total 30+ days Past Due		104	0
Commercial [Member] | Commercial Real Estate [Member] | 90+ Days Past Due [Member]
Aging of the recorded investment in past due loans [Abstract]
Total 30+ days Past Due		2,060	2,340
Commercial [Member] | Other [Member]
Aging of the recorded investment in past due loans [Abstract]
Total 30+ days Past Due		0	0
Current		23,276	27,542
Total loans		23,276	27,542
Commercial [Member] | Other [Member] | 30-59 Days Past Due [Member]
Aging of the recorded investment in past due loans [Abstract]
Total 30+ days Past Due		0	0
Commercial [Member] | Other [Member] | 60-89 Days Past Due [Member]
Aging of the recorded investment in past due loans [Abstract]
Total 30+ days Past Due		0	0
Commercial [Member] | Other [Member] | 90+ Days Past Due [Member]
Aging of the recorded investment in past due loans [Abstract]
Total 30+ days Past Due		0	0
Real Estate Mortgage - 1 to 4 Family [Member]
Aging of the recorded investment in past due loans [Abstract]
Total loans		3,139,020	3,080,498
Real Estate Mortgage - 1 to 4 Family [Member] | First Mortgages [Member]
Aging of the recorded investment in past due loans [Abstract]
Total 30+ days Past Due		17,794	20,674
Current		2,702,324	2,639,998
Total loans		2,720,118	2,660,672
Real Estate Mortgage - 1 to 4 Family [Member] | First Mortgages [Member] | 30-59 Days Past Due [Member]
Aging of the recorded investment in past due loans [Abstract]
Total 30+ days Past Due		2,421	4,986
Real Estate Mortgage - 1 to 4 Family [Member] | First Mortgages [Member] | 60-89 Days Past Due [Member]
Aging of the recorded investment in past due loans [Abstract]
Total 30+ days Past Due		1,846	2,308
Real Estate Mortgage - 1 to 4 Family [Member] | First Mortgages [Member] | 90+ Days Past Due [Member]
Aging of the recorded investment in past due loans [Abstract]
Total 30+ days Past Due		13,527	13,380
Real Estate Mortgage - 1 to 4 Family [Member] | Home Equity Loans [Member]
Aging of the recorded investment in past due loans [Abstract]
Total 30+ days Past Due		176	192
Current		66,657	60,309
Total loans		66,833	60,501
Real Estate Mortgage - 1 to 4 Family [Member] | Home Equity Loans [Member] | 30-59 Days Past Due [Member]
Aging of the recorded investment in past due loans [Abstract]
Total 30+ days Past Due		109	43
Real Estate Mortgage - 1 to 4 Family [Member] | Home Equity Loans [Member] | 60-89 Days Past Due [Member]
Aging of the recorded investment in past due loans [Abstract]
Total 30+ days Past Due		2	0
Real Estate Mortgage - 1 to 4 Family [Member] | Home Equity Loans [Member] | 90+ Days Past Due [Member]
Aging of the recorded investment in past due loans [Abstract]
Total 30+ days Past Due		65	149
Real Estate Mortgage - 1 to 4 Family [Member] | Home Equity Lines of Credit [Member]
Aging of the recorded investment in past due loans [Abstract]
Total 30+ days Past Due		2,308	2,593
Current		349,761	356,732
Total loans		352,069	359,325
Real Estate Mortgage - 1 to 4 Family [Member] | Home Equity Lines of Credit [Member] | 30-59 Days Past Due [Member]
Aging of the recorded investment in past due loans [Abstract]
Total 30+ days Past Due		505	731
Real Estate Mortgage - 1 to 4 Family [Member] | Home Equity Lines of Credit [Member] | 60-89 Days Past Due [Member]
Aging of the recorded investment in past due loans [Abstract]
Total 30+ days Past Due		141	204
Real Estate Mortgage - 1 to 4 Family [Member] | Home Equity Lines of Credit [Member] | 90+ Days Past Due [Member]
Aging of the recorded investment in past due loans [Abstract]
Total 30+ days Past Due		1,662	1,658
Installment [Member]
Aging of the recorded investment in past due loans [Abstract]
Total 30+ days Past Due		98	163
Current		8,378	9,228
Total loans		8,476	9,391
Installment [Member] | 30-59 Days Past Due [Member]
Aging of the recorded investment in past due loans [Abstract]
Total 30+ days Past Due		20	35
Installment [Member] | 60-89 Days Past Due [Member]
Aging of the recorded investment in past due loans [Abstract]
Total 30+ days Past Due		33	40
Installment [Member] | 90+ Days Past Due [Member]
Aging of the recorded investment in past due loans [Abstract]
Total 30+ days Past Due		45	88
New York and Other States [Member]
Aging of the recorded investment in past due loans [Abstract]
Total 30+ days Past Due		20,944	23,754
Current		2,641,333	2,627,033
Total loans	[1]	2,662,277	2,650,787
New York and Other States [Member] | 30-59 Days Past Due [Member]
Aging of the recorded investment in past due loans [Abstract]
Total 30+ days Past Due		2,996	4,970
New York and Other States [Member] | 60-89 Days Past Due [Member]
Aging of the recorded investment in past due loans [Abstract]
Total 30+ days Past Due		1,905	2,260
New York and Other States [Member] | 90+ Days Past Due [Member]
Aging of the recorded investment in past due loans [Abstract]
Total 30+ days Past Due		16,043	16,524
New York and Other States [Member] | Commercial [Member]
Aging of the recorded investment in past due loans [Abstract]
Total loans		181,346	188,414
New York and Other States [Member] | Commercial [Member] | Commercial Real Estate [Member]
Aging of the recorded investment in past due loans [Abstract]
Total 30+ days Past Due		2,744	2,340
Current		155,406	158,625
Total loans	[1]	158,150	160,965
New York and Other States [Member] | Commercial [Member] | Commercial Real Estate [Member] | 30-59 Days Past Due [Member]
Aging of the recorded investment in past due loans [Abstract]
Total 30+ days Past Due		580	0
New York and Other States [Member] | Commercial [Member] | Commercial Real Estate [Member] | 60-89 Days Past Due [Member]
Aging of the recorded investment in past due loans [Abstract]
Total 30+ days Past Due		104	0
New York and Other States [Member] | Commercial [Member] | Commercial Real Estate [Member] | 90+ Days Past Due [Member]
Aging of the recorded investment in past due loans [Abstract]
Total 30+ days Past Due		2,060	2,340
New York and Other States [Member] | Commercial [Member] | Other [Member]
Aging of the recorded investment in past due loans [Abstract]
Total 30+ days Past Due		0	0
Current		23,196	27,449
Total loans	[1]	23,196	27,449
New York and Other States [Member] | Commercial [Member] | Other [Member] | 30-59 Days Past Due [Member]
Aging of the recorded investment in past due loans [Abstract]
Total 30+ days Past Due		0	0
New York and Other States [Member] | Commercial [Member] | Other [Member] | 60-89 Days Past Due [Member]
Aging of the recorded investment in past due loans [Abstract]
Total 30+ days Past Due		0	0
New York and Other States [Member] | Commercial [Member] | Other [Member] | 90+ Days Past Due [Member]
Aging of the recorded investment in past due loans [Abstract]
Total 30+ days Past Due		0	0
New York and Other States [Member] | Real Estate Mortgage - 1 to 4 Family [Member] | First Mortgages [Member]
Aging of the recorded investment in past due loans [Abstract]
Total 30+ days Past Due		15,965	18,887
Current		2,100,541	2,075,070
Total loans	[1]	2,116,506	2,093,957
New York and Other States [Member] | Real Estate Mortgage - 1 to 4 Family [Member] | First Mortgages [Member] | 30-59 Days Past Due [Member]
Aging of the recorded investment in past due loans [Abstract]
Total 30+ days Past Due		1,896	4,321
New York and Other States [Member] | Real Estate Mortgage - 1 to 4 Family [Member] | First Mortgages [Member] | 60-89 Days Past Due [Member]
Aging of the recorded investment in past due loans [Abstract]
Total 30+ days Past Due		1,678	2,037
New York and Other States [Member] | Real Estate Mortgage - 1 to 4 Family [Member] | First Mortgages [Member] | 90+ Days Past Due [Member]
Aging of the recorded investment in past due loans [Abstract]
Total 30+ days Past Due		12,391	12,529
New York and Other States [Member] | Real Estate Mortgage - 1 to 4 Family [Member] | Home Equity Loans [Member]
Aging of the recorded investment in past due loans [Abstract]
Total 30+ days Past Due		176	192
Current		56,404	52,059
Total loans	[1]	56,580	52,251
New York and Other States [Member] | Real Estate Mortgage - 1 to 4 Family [Member] | Home Equity Loans [Member] | 30-59 Days Past Due [Member]
Aging of the recorded investment in past due loans [Abstract]
Total 30+ days Past Due		109	43
New York and Other States [Member] | Real Estate Mortgage - 1 to 4 Family [Member] | Home Equity Loans [Member] | 60-89 Days Past Due [Member]
Aging of the recorded investment in past due loans [Abstract]
Total 30+ days Past Due		2	0
New York and Other States [Member] | Real Estate Mortgage - 1 to 4 Family [Member] | Home Equity Loans [Member] | 90+ Days Past Due [Member]
Aging of the recorded investment in past due loans [Abstract]
Total 30+ days Past Due		65	149
New York and Other States [Member] | Real Estate Mortgage - 1 to 4 Family [Member] | Home Equity Lines of Credit [Member]
Aging of the recorded investment in past due loans [Abstract]
Total 30+ days Past Due		1,965	2,194
Current		298,987	305,971
Total loans	[1]	300,952	308,165
New York and Other States [Member] | Real Estate Mortgage - 1 to 4 Family [Member] | Home Equity Lines of Credit [Member] | 30-59 Days Past Due [Member]
Aging of the recorded investment in past due loans [Abstract]
Total 30+ days Past Due		392	572
New York and Other States [Member] | Real Estate Mortgage - 1 to 4 Family [Member] | Home Equity Lines of Credit [Member] | 60-89 Days Past Due [Member]
Aging of the recorded investment in past due loans [Abstract]
Total 30+ days Past Due		91	204
New York and Other States [Member] | Real Estate Mortgage - 1 to 4 Family [Member] | Home Equity Lines of Credit [Member] | 90+ Days Past Due [Member]
Aging of the recorded investment in past due loans [Abstract]
Total 30+ days Past Due		1,482	1,418
New York and Other States [Member] | Installment [Member]
Aging of the recorded investment in past due loans [Abstract]
Total 30+ days Past Due		94	141
Current		6,799	7,859
Total loans	[1]	6,893	8,000
New York and Other States [Member] | Installment [Member] | 30-59 Days Past Due [Member]
Aging of the recorded investment in past due loans [Abstract]
Total 30+ days Past Due		19	34
New York and Other States [Member] | Installment [Member] | 60-89 Days Past Due [Member]
Aging of the recorded investment in past due loans [Abstract]
Total 30+ days Past Due		30	19
New York and Other States [Member] | Installment [Member] | 90+ Days Past Due [Member]
Aging of the recorded investment in past due loans [Abstract]
Total 30+ days Past Due		45	88
Florida [Member]
Aging of the recorded investment in past due loans [Abstract]
Total 30+ days Past Due		2,176	2,218
Current		678,741	640,299
Total loans		680,917	642,517
Florida [Member] | 30-59 Days Past Due [Member]
Aging of the recorded investment in past due loans [Abstract]
Total 30+ days Past Due		639	835
Florida [Member] | 60-89 Days Past Due [Member]
Aging of the recorded investment in past due loans [Abstract]
Total 30+ days Past Due		221	292
Florida [Member] | 90+ Days Past Due [Member]
Aging of the recorded investment in past due loans [Abstract]
Total 30+ days Past Due		1,316	1,091
Florida [Member] | Commercial [Member]
Aging of the recorded investment in past due loans [Abstract]
Total loans		14,352	15,001
Florida [Member] | Commercial [Member] | Commercial Real Estate [Member]
Aging of the recorded investment in past due loans [Abstract]
Total 30+ days Past Due		0	10
Current		14,272	14,898
Total loans		14,272	14,908
Florida [Member] | Commercial [Member] | Commercial Real Estate [Member] | 30-59 Days Past Due [Member]
Aging of the recorded investment in past due loans [Abstract]
Total 30+ days Past Due		0	10
Florida [Member] | Commercial [Member] | Commercial Real Estate [Member] | 60-89 Days Past Due [Member]
Aging of the recorded investment in past due loans [Abstract]
Total 30+ days Past Due		0	0
Florida [Member] | Commercial [Member] | Commercial Real Estate [Member] | 90+ Days Past Due [Member]
Aging of the recorded investment in past due loans [Abstract]
Total 30+ days Past Due		0	0
Florida [Member] | Commercial [Member] | Other [Member]
Aging of the recorded investment in past due loans [Abstract]
Total 30+ days Past Due		0	0
Current		80	93
Total loans		80	93
Florida [Member] | Commercial [Member] | Other [Member] | 30-59 Days Past Due [Member]
Aging of the recorded investment in past due loans [Abstract]
Total 30+ days Past Due		0	0
Florida [Member] | Commercial [Member] | Other [Member] | 60-89 Days Past Due [Member]
Aging of the recorded investment in past due loans [Abstract]
Total 30+ days Past Due		0	0
Florida [Member] | Commercial [Member] | Other [Member] | 90+ Days Past Due [Member]
Aging of the recorded investment in past due loans [Abstract]
Total 30+ days Past Due		0	0
Florida [Member] | Real Estate Mortgage - 1 to 4 Family [Member] | First Mortgages [Member]
Aging of the recorded investment in past due loans [Abstract]
Total 30+ days Past Due		1,829	1,787
Current		601,783	564,928
Total loans		603,612	566,715
Florida [Member] | Real Estate Mortgage - 1 to 4 Family [Member] | First Mortgages [Member] | 30-59 Days Past Due [Member]
Aging of the recorded investment in past due loans [Abstract]
Total 30+ days Past Due		525	665
Florida [Member] | Real Estate Mortgage - 1 to 4 Family [Member] | First Mortgages [Member] | 60-89 Days Past Due [Member]
Aging of the recorded investment in past due loans [Abstract]
Total 30+ days Past Due		168	271
Florida [Member] | Real Estate Mortgage - 1 to 4 Family [Member] | First Mortgages [Member] | 90+ Days Past Due [Member]
Aging of the recorded investment in past due loans [Abstract]
Total 30+ days Past Due		1,136	851
Florida [Member] | Real Estate Mortgage - 1 to 4 Family [Member] | Home Equity Loans [Member]
Aging of the recorded investment in past due loans [Abstract]
Total 30+ days Past Due		0	0
Current		10,253	8,250
Total loans		10,253	8,250
Florida [Member] | Real Estate Mortgage - 1 to 4 Family [Member] | Home Equity Loans [Member] | 30-59 Days Past Due [Member]
Aging of the recorded investment in past due loans [Abstract]
Total 30+ days Past Due		0	0
Florida [Member] | Real Estate Mortgage - 1 to 4 Family [Member] | Home Equity Loans [Member] | 60-89 Days Past Due [Member]
Aging of the recorded investment in past due loans [Abstract]
Total 30+ days Past Due		0	0
Florida [Member] | Real Estate Mortgage - 1 to 4 Family [Member] | Home Equity Loans [Member] | 90+ Days Past Due [Member]
Aging of the recorded investment in past due loans [Abstract]
Total 30+ days Past Due		0	0
Florida [Member] | Real Estate Mortgage - 1 to 4 Family [Member] | Home Equity Lines of Credit [Member]
Aging of the recorded investment in past due loans [Abstract]
Total 30+ days Past Due		343	399
Current		50,774	50,761
Total loans		51,117	51,160
Florida [Member] | Real Estate Mortgage - 1 to 4 Family [Member] | Home Equity Lines of Credit [Member] | 30-59 Days Past Due [Member]
Aging of the recorded investment in past due loans [Abstract]
Total 30+ days Past Due		113	159
Florida [Member] | Real Estate Mortgage - 1 to 4 Family [Member] | Home Equity Lines of Credit [Member] | 60-89 Days Past Due [Member]
Aging of the recorded investment in past due loans [Abstract]
Total 30+ days Past Due		50	0
Florida [Member] | Real Estate Mortgage - 1 to 4 Family [Member] | Home Equity Lines of Credit [Member] | 90+ Days Past Due [Member]
Aging of the recorded investment in past due loans [Abstract]
Total 30+ days Past Due		180	240
Florida [Member] | Installment [Member]
Aging of the recorded investment in past due loans [Abstract]
Total 30+ days Past Due		4	22
Current		1,579	1,369
Total loans		1,583	1,391
Florida [Member] | Installment [Member] | 30-59 Days Past Due [Member]
Aging of the recorded investment in past due loans [Abstract]
Total 30+ days Past Due		1	1
Florida [Member] | Installment [Member] | 60-89 Days Past Due [Member]
Aging of the recorded investment in past due loans [Abstract]
Total 30+ days Past Due		3	21
Florida [Member] | Installment [Member] | 90+ Days Past Due [Member]
Aging of the recorded investment in past due loans [Abstract]
Total 30+ days Past Due		$ 0	$ 0

[1] Includes New York, New Jersey, Vermont and Massachusetts.

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Loans and Allowance for Loan Losses, Allowance for Loan Losses (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Allowance for loan losses by portfolio segment [Roll Forward]
Balance at beginning of period	$ 44,398	$ 45,944	$ 44,762	$ 46,327
Loans charged off [Abstract]
Total loan charge offs	1,268	1,318	2,602	2,634
Recoveries of loans previously charged off [Abstract]
Total recoveries	134	145	304	278
Net loans charged off	1,134	1,173	2,298	2,356
Provision (credit) for loan losses	800	800	1,600	1,600
Balance at end of period	44,064	45,571	44,064	45,571
Commercial [Member]
Allowance for loan losses by portfolio segment [Roll Forward]
Balance at beginning of period	4,919	4,024	4,491	4,071
Loans charged off [Abstract]
Total loan charge offs	68	50	332	100
Recoveries of loans previously charged off [Abstract]
Total recoveries	1	1	41	18
Net loans charged off	67	49	291	82
Provision (credit) for loan losses	194	47	846	33
Balance at end of period	5,046	4,022	5,046	4,022
Real Estate Mortgage - 1 to 4 Family [Member]
Allowance for loan losses by portfolio segment [Roll Forward]
Balance at beginning of period	39,017	41,529	39,753	42,088
Loans charged off [Abstract]
Total loan charge offs	1,107	1,235	2,080	2,458
Recoveries of loans previously charged off [Abstract]
Total recoveries	118	135	237	245
Net loans charged off	989	1,100	1,843	2,213
Provision (credit) for loan losses	561	658	679	1,212
Balance at end of period	38,589	41,087	38,589	41,087
Installment [Member]
Allowance for loan losses by portfolio segment [Roll Forward]
Balance at beginning of period	462	391	518	168
Loans charged off [Abstract]
Total loan charge offs	93	33	190	76
Recoveries of loans previously charged off [Abstract]
Total recoveries	15	9	26	15
Net loans charged off	78	24	164	61
Provision (credit) for loan losses	45	95	75	355
Balance at end of period	429	462	429	462
New York and Other States [Member]
Loans charged off [Abstract]
Total loan charge offs	1,250	1,149	2,484	2,356
Recoveries of loans previously charged off [Abstract]
Total recoveries	133	142	302	274
New York and Other States [Member] | Commercial [Member]
Loans charged off [Abstract]
Total loan charge offs	68	50	332	100
Recoveries of loans previously charged off [Abstract]
Total recoveries	1	0	41	16
New York and Other States [Member] | Real Estate Mortgage - 1 to 4 Family [Member]
Loans charged off [Abstract]
Total loan charge offs	1,090	1,066	1,979	2,180
Recoveries of loans previously charged off [Abstract]
Total recoveries	117	133	235	243
New York and Other States [Member] | Installment [Member]
Loans charged off [Abstract]
Total loan charge offs	92	33	173	76
Recoveries of loans previously charged off [Abstract]
Total recoveries	15	9	26	15
Florida [Member]
Loans charged off [Abstract]
Total loan charge offs	18	169	118	278
Recoveries of loans previously charged off [Abstract]
Total recoveries	1	3	2	4
Florida [Member] | Commercial [Member]
Loans charged off [Abstract]
Total loan charge offs	0	0	0	0
Recoveries of loans previously charged off [Abstract]
Total recoveries	0	1	0	2
Florida [Member] | Real Estate Mortgage - 1 to 4 Family [Member]
Loans charged off [Abstract]
Total loan charge offs	17	169	101	278
Recoveries of loans previously charged off [Abstract]
Total recoveries	1	2	2	2
Florida [Member] | Installment [Member]
Loans charged off [Abstract]
Total loan charge offs	1	0	17	0
Recoveries of loans previously charged off [Abstract]
Total recoveries	$ 0	$ 0	$ 0	$ 0

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Loans and Allowance for Loan Losses, Based on Impairment Review Method (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014
Ending allowance balance attributable to loans [Abstract]
Individually evaluated for impairment	$ 0		$ 0
Collectively evaluated for impairment	44,064		44,762
Total ending allowance balance	44,064	$ 44,398	44,762	$ 45,571	$ 45,944	$ 46,327
Loans [Abstract]
Individually evaluated for impairment	25,182		25,881
Collectively evaluated for impairment	3,318,012		3,267,423
Total loans	3,343,194		3,293,304
Commercial [Member]
Ending allowance balance attributable to loans [Abstract]
Individually evaluated for impairment	0		0
Collectively evaluated for impairment	5,046		4,491
Total ending allowance balance	5,046	4,919	4,491	4,022	4,024	4,071
Loans [Abstract]
Individually evaluated for impairment	2,966		3,306
Collectively evaluated for impairment	192,732		200,109
Total loans	195,698		203,415
1 to 4 Family Residential Real Estate [Member]
Ending allowance balance attributable to loans [Abstract]
Individually evaluated for impairment	0		0
Collectively evaluated for impairment	38,589		39,753
Total ending allowance balance	38,589	39,017	39,753	41,087	41,529	42,088
Loans [Abstract]
Individually evaluated for impairment	22,216		22,575
Collectively evaluated for impairment	3,116,804		3,057,923
Total loans	3,139,020		3,080,498
Installment [Member]
Ending allowance balance attributable to loans [Abstract]
Individually evaluated for impairment	0		0
Collectively evaluated for impairment	429		518
Total ending allowance balance	429	$ 462	518	$ 462	$ 391	$ 168
Loans [Abstract]
Individually evaluated for impairment	0		0
Collectively evaluated for impairment	8,476		9,391
Total loans	$ 8,476		$ 9,391

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Loans and Allowance for Loan Losses, Impaired Receivables (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2016	Dec. 31, 2015
Impaired loans by loans class [Abstract]
Recorded Investment	$ 25,182	$ 25,881
Unpaid Principal Balance	27,477	28,209
Related Allowance	0	0
Average Recorded Investment	24,826	26,552
Commercial [Member] | Commercial Real Estate [Member]
Impaired loans by loans class [Abstract]
Recorded Investment	2,966	3,306
Unpaid Principal Balance	3,988	3,996
Related Allowance	0	0
Average Recorded Investment	3,116	3,608
Commercial [Member] | Other [Member]
Impaired loans by loans class [Abstract]
Recorded Investment	0	0
Unpaid Principal Balance	0	0
Related Allowance	0	0
Average Recorded Investment	0	0
Real Estate Mortgage - 1 to 4 Family [Member] | First Mortgages [Member]
Impaired loans by loans class [Abstract]
Recorded Investment	19,364	19,220
Unpaid Principal Balance	20,366	20,454
Related Allowance	0	0
Average Recorded Investment	18,857	19,616
Real Estate Mortgage - 1 to 4 Family [Member] | Home Equity Loans [Member]
Impaired loans by loans class [Abstract]
Recorded Investment	338	412
Unpaid Principal Balance	374	470
Related Allowance	0	0
Average Recorded Investment	332	436
Real Estate Mortgage - 1 to 4 Family [Member] | Home Equity Lines of Credit [Member]
Impaired loans by loans class [Abstract]
Recorded Investment	2,514	2,943
Unpaid Principal Balance	2,749	3,289
Related Allowance	0	0
Average Recorded Investment	2,521	2,892
New York and Other States [Member]
Impaired loans by loans class [Abstract]
Recorded Investment	22,553	23,431
Unpaid Principal Balance	24,685	25,584
Related Allowance	0	0
Average Recorded Investment	22,436	24,355
New York and Other States [Member] | Commercial [Member] | Commercial Real Estate [Member]
Impaired loans by loans class [Abstract]
Recorded Investment	2,966	3,306
Unpaid Principal Balance	3,988	3,996
Related Allowance	0	0
Average Recorded Investment	3,116	3,608
New York and Other States [Member] | Commercial [Member] | Other [Member]
Impaired loans by loans class [Abstract]
Recorded Investment	0	0
Unpaid Principal Balance	0	0
Related Allowance	0	0
Average Recorded Investment	0	0
New York and Other States [Member] | Real Estate Mortgage - 1 to 4 Family [Member] | First Mortgages [Member]
Impaired loans by loans class [Abstract]
Recorded Investment	17,439	17,460
Unpaid Principal Balance	18,350	18,602
Related Allowance	0	0
Average Recorded Investment	17,146	18,127
New York and Other States [Member] | Real Estate Mortgage - 1 to 4 Family [Member] | Home Equity Loans [Member]
Impaired loans by loans class [Abstract]
Recorded Investment	241	359
Unpaid Principal Balance	277	417
Related Allowance	0	0
Average Recorded Investment	265	382
New York and Other States [Member] | Real Estate Mortgage - 1 to 4 Family [Member] | Home Equity Lines of Credit [Member]
Impaired loans by loans class [Abstract]
Recorded Investment	1,907	2,306
Unpaid Principal Balance	2,070	2,569
Related Allowance	0	0
Average Recorded Investment	1,909	2,238
Florida [Member]
Impaired loans by loans class [Abstract]
Recorded Investment	2,629	2,450
Unpaid Principal Balance	2,792	2,625
Related Allowance	0	0
Average Recorded Investment	2,390	2,197
Florida [Member] | Commercial [Member] | Commercial Real Estate [Member]
Impaired loans by loans class [Abstract]
Recorded Investment	0	0
Unpaid Principal Balance	0	0
Related Allowance	0	0
Average Recorded Investment	0	0
Florida [Member] | Commercial [Member] | Other [Member]
Impaired loans by loans class [Abstract]
Recorded Investment	0	0
Unpaid Principal Balance	0	0
Related Allowance	0	0
Average Recorded Investment	0	0
Florida [Member] | Real Estate Mortgage - 1 to 4 Family [Member] | First Mortgages [Member]
Impaired loans by loans class [Abstract]
Recorded Investment	1,925	1,760
Unpaid Principal Balance	2,016	1,852
Related Allowance	0	0
Average Recorded Investment	1,711	1,489
Florida [Member] | Real Estate Mortgage - 1 to 4 Family [Member] | Home Equity Loans [Member]
Impaired loans by loans class [Abstract]
Recorded Investment	97	53
Unpaid Principal Balance	97	53
Related Allowance	0	0
Average Recorded Investment	67	54
Florida [Member] | Real Estate Mortgage - 1 to 4 Family [Member] | Home Equity Lines of Credit [Member]
Impaired loans by loans class [Abstract]
Recorded Investment	607	637
Unpaid Principal Balance	679	720
Related Allowance	0	0
Average Recorded Investment	$ 612	$ 654

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Loans and Allowance for Loan Losses, Troubled Debt Restructurings (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016 USD ($) Contract	Jun. 30, 2015 USD ($) Contract	Jun. 30, 2016 USD ($) Contract	Jun. 30, 2015 USD ($) Contract	Dec. 31, 2015 USD ($)
Real Estate Mortgage - 1 to 4 Family [Member]
Financing Receivable, Modifications [Line Items]
TDR's classifications from previously performing loans	$ 11,000		$ 11,000		$ 10,600
New York and Other States [Member]
Modified loans by class determined to be TDR's [Abstract]
Number of Contracts | Contract	15	16	31	23
Pre-Modification Outstanding Recorded Investment	$ 819	$ 1,725	$ 1,964	$ 3,170
Post-Modification Outstanding Recorded Investment	$ 819	$ 1,725	$ 1,964	$ 3,170
Loans modified for which there was payment default [Abstract]
Number of Contracts | Contract	1	0	4	0
Recorded Investment	$ 107	$ 0	$ 316	$ 0
New York and Other States [Member] | Real Estate Mortgage - 1 to 4 Family [Member] | First Mortgages [Member]
Modified loans by class determined to be TDR's [Abstract]
Number of Contracts | Contract	10	13	22	20
Pre-Modification Outstanding Recorded Investment	$ 753	$ 1,542	$ 1,807	$ 2,987
Post-Modification Outstanding Recorded Investment	$ 753	$ 1,542	$ 1,807	$ 2,987
Loans modified for which there was payment default [Abstract]
Number of Contracts | Contract	1	0	3	0
Recorded Investment	$ 107	$ 0	$ 268	$ 0
New York and Other States [Member] | Real Estate Mortgage - 1 to 4 Family [Member] | Home Equity Loans [Member]
Modified loans by class determined to be TDR's [Abstract]
Number of Contracts | Contract	0	1	0	1
Pre-Modification Outstanding Recorded Investment	$ 0	$ 139	$ 0	$ 139
Post-Modification Outstanding Recorded Investment	$ 0	$ 139	$ 0	$ 139
New York and Other States [Member] | Real Estate Mortgage - 1 to 4 Family [Member] | Home Equity Lines of Credit [Member]
Modified loans by class determined to be TDR's [Abstract]
Number of Contracts | Contract	5	2	9	2
Pre-Modification Outstanding Recorded Investment	$ 66	$ 44	$ 157	$ 44
Post-Modification Outstanding Recorded Investment	$ 66	$ 44	$ 157	$ 44
Loans modified for which there was payment default [Abstract]
Number of Contracts | Contract			1	0
Recorded Investment			$ 48	$ 0
Florida [Member]
Modified loans by class determined to be TDR's [Abstract]
Number of Contracts | Contract	3	0	5	3
Pre-Modification Outstanding Recorded Investment	$ 350	$ 0	$ 577	$ 207
Post-Modification Outstanding Recorded Investment	$ 350	$ 0	$ 577	$ 207
Loans modified for which there was payment default [Abstract]
Number of Contracts | Contract	1	0	1	1
Recorded Investment	$ 46	$ 0	$ 46	$ 50
Florida [Member] | Real Estate Mortgage - 1 to 4 Family [Member] | First Mortgages [Member]
Modified loans by class determined to be TDR's [Abstract]
Number of Contracts | Contract	1	0	3	1
Pre-Modification Outstanding Recorded Investment	$ 298	$ 0	$ 525	$ 157
Post-Modification Outstanding Recorded Investment	$ 298	$ 0	$ 525	$ 157
Loans modified for which there was payment default [Abstract]
Number of Contracts | Contract	1	0
Recorded Investment	$ 46	$ 0
Florida [Member] | Real Estate Mortgage - 1 to 4 Family [Member] | Home Equity Loans [Member]
Modified loans by class determined to be TDR's [Abstract]
Number of Contracts | Contract	1	0	1	0
Pre-Modification Outstanding Recorded Investment	$ 46	$ 0	$ 46	$ 0
Post-Modification Outstanding Recorded Investment	$ 46	$ 0	$ 46	$ 0
Florida [Member] | Real Estate Mortgage - 1 to 4 Family [Member] | Home Equity Lines of Credit [Member]
Modified loans by class determined to be TDR's [Abstract]
Number of Contracts | Contract	1	0	1	2
Pre-Modification Outstanding Recorded Investment	$ 6	$ 0	$ 6	$ 50
Post-Modification Outstanding Recorded Investment	$ 6	$ 0	$ 6	$ 50
Loans modified for which there was payment default [Abstract]
Number of Contracts | Contract			1	1
Recorded Investment			$ 46	$ 50

XML

Loans and Allowance for Loan Losses, Modified Loans Payment Status (Details)	6 Months Ended
	Jun. 30, 2016
Loans and Allowance for Loan Losses [Abstract]
Deferral period of chapter 13 bankruptcies	60 months
Number of days past due when loans are considered to be in payment default	90 days
Contractual past due period for chapter 13 bankruptcy loans to be in payment default	30 days

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Loans and Allowance for Loan Losses, Risk Category of Loans (Details) - USD ($) $ in Thousands		Jun. 30, 2016	Dec. 31, 2015
Financing Receivable, Recorded Investment [Line Items]
Total loans, net		$ 3,343,194	$ 3,293,304
Impaired loans included in classified loans		2,700	3,000
Commercial [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans, net		195,698	203,415
Commercial [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans, net		180,779	187,051
Commercial [Member] | Classified [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans, net		14,919	16,364
Commercial [Member] | Commercial Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans, net		172,422	175,873
Commercial [Member] | Commercial Real Estate [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans, net		158,227	160,243
Commercial [Member] | Commercial Real Estate [Member] | Classified [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans, net		14,195	15,630
Commercial [Member] | Other [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans, net		23,276	27,542
Commercial [Member] | Other [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans, net		22,552	26,808
Commercial [Member] | Other [Member] | Classified [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans, net		724	734
New York and Other States [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans, net	[1]	2,662,277	2,650,787
New York and Other States [Member] | Commercial [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans, net		181,346	188,414
New York and Other States [Member] | Commercial [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans, net		166,427	172,050
New York and Other States [Member] | Commercial [Member] | Classified [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans, net		14,919	16,364
New York and Other States [Member] | Commercial [Member] | Commercial Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans, net	[1]	158,150	160,965
New York and Other States [Member] | Commercial [Member] | Commercial Real Estate [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans, net		143,955	145,335
New York and Other States [Member] | Commercial [Member] | Commercial Real Estate [Member] | Classified [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans, net		14,195	15,630
New York and Other States [Member] | Commercial [Member] | Other [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans, net	[1]	23,196	27,449
New York and Other States [Member] | Commercial [Member] | Other [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans, net		22,472	26,715
New York and Other States [Member] | Commercial [Member] | Other [Member] | Classified [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans, net		724	734
Florida [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans, net		680,917	642,517
Florida [Member] | Commercial [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans, net		14,352	15,001
Florida [Member] | Commercial [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans, net		14,352	15,001
Florida [Member] | Commercial [Member] | Classified [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans, net		0	0
Florida [Member] | Commercial [Member] | Commercial Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans, net		14,272	14,908
Florida [Member] | Commercial [Member] | Commercial Real Estate [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans, net		14,272	14,908
Florida [Member] | Commercial [Member] | Commercial Real Estate [Member] | Classified [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans, net		0	0
Florida [Member] | Commercial [Member] | Other [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans, net		80	93
Florida [Member] | Commercial [Member] | Other [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans, net		80	93
Florida [Member] | Commercial [Member] | Other [Member] | Classified [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans, net		$ 0	$ 0

[1] Includes New York, New Jersey, Vermont and Massachusetts.

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Fair Value of Financial Instruments, Part 1 (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Securities available for sale [Abstract]
Total securities available for sale	$ 620,506	$ 601,037
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Securities available for sale [Abstract]
Total securities available for sale	35	35
Significant Other Observable Inputs (Level 2) [Member]
Securities available for sale [Abstract]
Total securities available for sale	620,471	601,002
Significant Unobservable Inputs (Level 3) [Member]
Securities available for sale [Abstract]
Total securities available for sale	0	0
Carrying Value [Member]
Securities available for sale [Abstract]
Total securities available for sale	620,506	601,037
Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Securities available for sale [Abstract]
U.S. government sponsored enterprises	0	0
State and political subdivisions	0	0
Mortgage backed securities and collateralized mortgage obligations - residential	0	0
Small Business Administration - guaranteed participation securities	0	0
Mortgage backed securities and collateralized mortgage obligations - commercial	0	0
Other securities	35	35
Total securities available for sale	35	35
Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member]
Securities available for sale [Abstract]
U.S. government sponsored enterprises	116,595	86,737
State and political subdivisions	974	1,290
Mortgage backed securities and collateralized mortgage obligations - residential	404,138	411,729
Small Business Administration - guaranteed participation securities	87,740	90,416
Mortgage backed securities and collateralized mortgage obligations - commercial	10,374	10,180
Other securities	650	650
Total securities available for sale	620,471	601,002
Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member]
Securities available for sale [Abstract]
U.S. government sponsored enterprises	0	0
State and political subdivisions	0	0
Mortgage backed securities and collateralized mortgage obligations - residential	0	0
Small Business Administration - guaranteed participation securities	0	0
Mortgage backed securities and collateralized mortgage obligations - commercial	0	0
Other securities	0	0
Total securities available for sale	0	0
Recurring [Member] | Carrying Value [Member]
Securities available for sale [Abstract]
U.S. government sponsored enterprises	116,595	86,737
State and political subdivisions	974	1,290
Mortgage backed securities and collateralized mortgage obligations - residential	404,138	411,729
Small Business Administration - guaranteed participation securities	87,740	90,416
Mortgage backed securities and collateralized mortgage obligations - commercial	10,374	10,180
Other securities	685	685
Total securities available for sale	$ 620,506	$ 601,037

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Fair Value of Financial Instruments, Part 2 (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended		12 Months Ended
	Jun. 30, 2016	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Impaired loans [Abstract]
Other real estate owned, commercial real estate	$ 735	$ 735		$ 1,000
Other real estate owned, residential real estate properties	3,900	3,900		5,400
Valuation charge on other real estate owned	260	606		1,100
Impaired loans	25,182	25,182		25,881
Collateral dependent impaired loans	1,500	1,500		4,000
Gross charge offs, commercial impaired loans	68	332		641
Gross charge offs, residential impaired loans	14	$ 126		$ 648
Nonrecurring [Member] | Sales Comparison Approach [Member] | Other Real Estate Owned [Member]
Impaired loans [Abstract]
Unobservable inputs			Adjustments for differences between comparable sales	Adjustments for differences between comparable sales
Nonrecurring [Member] | Sales Comparison Approach [Member] | Other Real Estate Owned [Member] | Minimum [Member]
Impaired loans [Abstract]
Adjustments for differences between comparable sales		1.00%		1.00%
Nonrecurring [Member] | Sales Comparison Approach [Member] | Other Real Estate Owned [Member] | Maximum [Member]
Impaired loans [Abstract]
Adjustments for differences between comparable sales		8.00%		10.00%
Nonrecurring [Member] | Sales Comparison Approach [Member] | Other Real Estate Owned [Member] | Weighted Average [Member]
Impaired loans [Abstract]
Adjustments for differences between comparable sales		5.00%		4.00%
Nonrecurring [Member] | Sales Comparison Approach [Member] | Impaired Loan [Member] | Real Estate Mortgage - 1 to 4 Family [Member]
Impaired loans [Abstract]
Unobservable inputs			Adjustments for differences between comparable sales	Adjustments for differences between comparable sales
Nonrecurring [Member] | Sales Comparison Approach [Member] | Impaired Loan [Member] | Real Estate Mortgage - 1 to 4 Family [Member] | Minimum [Member]
Impaired loans [Abstract]
Adjustments for differences between comparable sales		2.00%		0.00%
Nonrecurring [Member] | Sales Comparison Approach [Member] | Impaired Loan [Member] | Real Estate Mortgage - 1 to 4 Family [Member] | Maximum [Member]
Impaired loans [Abstract]
Adjustments for differences between comparable sales		13.00%		9.00%
Nonrecurring [Member] | Sales Comparison Approach [Member] | Impaired Loan [Member] | Real Estate Mortgage - 1 to 4 Family [Member] | Weighted Average [Member]
Impaired loans [Abstract]
Adjustments for differences between comparable sales		5.00%		4.00%
Nonrecurring [Member] | Sales Comparison Approach [Member] | Impaired Loan [Member] | Commercial Real Estate [Member]
Impaired loans [Abstract]
Unobservable inputs			Adjustments for differences between comparable sales	Adjustments for differences between comparable sales
Nonrecurring [Member] | Sales Comparison Approach [Member] | Impaired Loan [Member] | Commercial Real Estate [Member] | Minimum [Member]
Impaired loans [Abstract]
Adjustments for differences between comparable sales		3.00%		3.00%
Nonrecurring [Member] | Sales Comparison Approach [Member] | Impaired Loan [Member] | Commercial Real Estate [Member] | Maximum [Member]
Impaired loans [Abstract]
Adjustments for differences between comparable sales		26.00%		22.00%
Nonrecurring [Member] | Sales Comparison Approach [Member] | Impaired Loan [Member] | Commercial Real Estate [Member] | Weighted Average [Member]
Impaired loans [Abstract]
Adjustments for differences between comparable sales		12.00%		11.00%
Nonrecurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Assets measured at fair value on a non-recurring basis [Abstract]
Other real estate owned	0	$ 0		$ 0
Impaired loans [Abstract]
Commercial real estate	0	0		0
Nonrecurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Real Estate Mortgage - 1 to 4 Family [Member]
Impaired loans [Abstract]
Real estate mortgage- 1 to 4 family	0	0		0
Nonrecurring [Member] | Significant Other Observable Inputs (Level 2) [Member]
Assets measured at fair value on a non-recurring basis [Abstract]
Other real estate owned	0	0		0
Impaired loans [Abstract]
Commercial real estate	0	0		0
Nonrecurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | Real Estate Mortgage - 1 to 4 Family [Member]
Impaired loans [Abstract]
Real estate mortgage- 1 to 4 family	0	0		0
Nonrecurring [Member] | Significant Unobservable Inputs (Level 3) [Member]
Assets measured at fair value on a non-recurring basis [Abstract]
Other real estate owned	4,602	4,602		6,455
Impaired loans [Abstract]
Commercial real estate	787	787		878
Nonrecurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | Real Estate Mortgage - 1 to 4 Family [Member]
Impaired loans [Abstract]
Real estate mortgage- 1 to 4 family	674	674		3,109
Nonrecurring [Member] | Carrying Value [Member]
Assets measured at fair value on a non-recurring basis [Abstract]
Other real estate owned	4,602	4,602		6,455
Impaired loans [Abstract]
Commercial real estate	787	787		878
Nonrecurring [Member] | Carrying Value [Member] | Real Estate Mortgage - 1 to 4 Family [Member]
Impaired loans [Abstract]
Real estate mortgage- 1 to 4 family	$ 674	$ 674		$ 3,109

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Fair Value of Financial Instruments, Part 3 (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015	Jun. 30, 2015	Dec. 31, 2014
Financial assets [Abstract]
Cash and cash equivalents	$ 758,396	$ 718,156	$ 678,585	$ 671,448
Securities available for sale	620,506	601,037
Held to maturity securities	53,890	59,439
Net loans	3,363,721	3,279,167
Accrued interest receivable	10,704	10,262
Financial liabilities [Abstract]
Demand deposits	376,669	365,081
Interest bearing deposits	3,804,575	3,738,607
Short-term borrowings	190,542	191,226
Accrued interest payable	518	501
Level 1 [Member]
Financial assets [Abstract]
Cash and cash equivalents	758,396	718,156
Securities available for sale	35	35
Held to maturity securities	0	0
Net loans	0	0
Accrued interest receivable	80	80
Financial liabilities [Abstract]
Demand deposits	376,669	365,081
Interest bearing deposits	2,625,391	2,627,367
Short-term borrowings	0	0
Accrued interest payable	78	74
Level 2 [Member]
Financial assets [Abstract]
Cash and cash equivalents	0	0
Securities available for sale	620,471	601,002
Held to maturity securities	53,890	59,439
Net loans	0	0
Accrued interest receivable	2,455	2,370
Financial liabilities [Abstract]
Demand deposits	0	0
Interest bearing deposits	1,179,184	1,111,240
Short-term borrowings	190,542	191,226
Accrued interest payable	440	427
Level 3 [Member]
Financial assets [Abstract]
Cash and cash equivalents	0	0
Securities available for sale	0	0
Held to maturity securities	0	0
Net loans	3,363,721	3,279,167
Accrued interest receivable	8,169	7,812
Financial liabilities [Abstract]
Demand deposits	0	0
Interest bearing deposits	0	0
Short-term borrowings	0	0
Accrued interest payable	0	0
Carrying Value [Member]
Financial assets [Abstract]
Cash and cash equivalents	758,396	718,156
Securities available for sale	620,506	601,037
Held to maturity securities	50,684	56,465
Federal Reserve Bank and Federal Home Loan Bank stock	9,579	9,480
Net loans	3,299,130	3,248,542
Accrued interest receivable	10,704	10,262
Financial liabilities [Abstract]
Demand deposits	376,669	365,081
Interest bearing deposits	3,803,958	3,735,297
Short-term borrowings	190,542	191,226
Accrued interest payable	$ 518	$ 501

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Accumulated Other Comprehensive (Loss) Income (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance			$ 413,310	$ 393,444
Other comprehensive income (loss)- before reclassifications	$ 2,739	$ (3,289)	7,560	(1,302)
Amount reclassified from accumulated other comprehensive income	(417)	49	(384)	(116)
Other comprehensive income (loss), net of tax	2,322	(3,240)	7,176	(1,418)
Balance	430,265	402,459	430,265	402,459
AOCI Attributable to Parent [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance	73	(2,687)	(4,781)	(4,509)
Other comprehensive income (loss), net of tax			7,176	(1,418)
Balance	2,395	(5,927)	2,395	(5,927)
Net Unrealized Holding Gain (Loss) on Securities Available for Sale, Net of Tax [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance	329	(1,855)	(4,492)	(3,693)
Other comprehensive income (loss)- before reclassifications	2,739	(3,289)	7,560	(1,302)
Amount reclassified from accumulated other comprehensive income	(401)	0	(401)	(149)
Other comprehensive income (loss), net of tax	2,338	(3,289)	7,159	(1,451)
Balance	2,667	(5,144)	2,667	(5,144)
Net Change in Net Actuarial Loss (Gain) and Prior Service Cost on Pension and Postretirement Benefit Plans, Net of Tax [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance	(256)	(832)	(289)	(816)
Other comprehensive income (loss)- before reclassifications	0	0	0	0
Amount reclassified from accumulated other comprehensive income	(16)	49	17	33
Other comprehensive income (loss), net of tax	(16)	49	17	33
Balance	$ (272)	$ (783)	$ (272)	$ (783)

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Accumulated Other Comprehensive (Loss) Income, Reclassifications out of accumulated other comprehensive income (loss) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Reclassification Adjustment Out of Accumulated Other Comprehensive Income [Line Items]
Net gain on securities transactions	$ 668	$ 0	$ 668	$ 249
Salaries and employee benefits	8,934	8,164	17,937	16,645
Income taxes	6,260	6,467	12,366	12,883
Net income	10,464	10,727	20,875	21,442
Reclassification Out of Accumulated Other Comprehensive Income (Loss) [Member]
Reclassification Adjustment Out of Accumulated Other Comprehensive Income [Line Items]
Net income	417	(49)	384	116
Net Unrealized Holding Gain (Loss) on Securities Available for Sale [Member] | Reclassification Out of Accumulated Other Comprehensive Income (Loss) [Member]
Reclassification Adjustment Out of Accumulated Other Comprehensive Income [Line Items]
Net gain on securities transactions	668	0	668	249
Income taxes	(267)	0	(267)	(100)
Net income	401	0	401	149
Net Change in Net Actuarial Loss and Prior Service Credit on Pension and Postretirement Benefit Plans, Net of Tax [Member] | Reclassification Out of Accumulated Other Comprehensive Income (Loss) [Member]
Reclassification Adjustment Out of Accumulated Other Comprehensive Income [Line Items]
Income taxes	(12)	33	11	22
Net income	16	(49)	(17)	(33)
Amortization of Net Actuarial Loss [Member] | Reclassification Out of Accumulated Other Comprehensive Income (Loss) [Member]
Reclassification Adjustment Out of Accumulated Other Comprehensive Income [Line Items]
Salaries and employee benefits	50	(15)	17	(10)
Amortization of Prior Service Cost [Member] | Reclassification Out of Accumulated Other Comprehensive Income (Loss) [Member]
Reclassification Adjustment Out of Accumulated Other Comprehensive Income [Line Items]
Salaries and employee benefits	$ (22)	$ (67)	$ (45)	$ (45)