EX-99.A 2 ef20032698_ex99-a.htm EXHIBIT 99 (A)
Exhibit 99(a)
             




  News Release

5 Sarnowski Drive, Glenville, New York, 12302
(518) 377-3311          Fax:  (518) 381-3668

Subsidiary:
Trustco Bank
Nasdaq -- TRST
     
Contact:
Robert Leonard
  
 
Executive Vice President
  
 
(518) 381-3693
  

FOR IMMEDIATE RELEASE:

TRUSTCO DELIVERS ONCE AGAIN WITH SECOND QUARTER RESULTS
NET INTEREST MARGIN UP 3.7% ON LOAN GROWTH OF 3.8%

Executive Snapshot:

•
Average Loan portfolio continues to grow:
o
On average, total loans were up $182.2 million or 3.8% for the second quarter 2024 compared to the second quarter 2023

•
Continued solid financial results:
o
Key metrics for second quarter 2024:
◾
Net income of $12.6 million versus $12.1 million for the first quarter 2024
◾
Net interest income of $37.8 million, up from $36.6 million compared to the first quarter of 2024
◾
Return on average assets (ROAA) of 0.82% compared to 0.80% to the first quarter of 2024
◾
Return on average equity (ROAE) of 7.76% versus 7.54% for the first quarter 2024
◾
Book value per share as of June 30, 2024 was $34.46, up from $34.12 compared to March 31, 2024

•
Superior asset quality:
o
Nonperforming loans (NPLs) were $19.2 million as of June 30, 2024, down from $19.4 million as of June 30, 2023, and generally continue to remain at low levels
o
NPLs to total loans were 0.38% as of June 30, 2024 compared to 0.40% as of June 30, 2023
o
Nonperforming assets (NPAs) to total assets was 0.35% as of June 30, 2024 compared to 0.34% as of June 30, 2023

•
Capital continues to grow:
o
Consolidated equity to assets increased 4.9% to 10.73% as of June 30, 2024 from 10.23% as of June 30, 2023

Page | 1
Glenville, New York – July 22, 2024

TrustCo Bank Corp NY (TrustCo, NASDAQ: TRST) today announced second quarter 2024 net income of $12.6 million or $0.66 diluted earnings per share, compared to net income of $16.4 million or $0.86 diluted earnings per share for the second quarter 2023; and net income of $24.7 million or $1.30 diluted earnings per share for the six months ended June 30, 2024, compared to net income of $34.1 million or $1.79 diluted earnings per share for the six months ended June 30, 2023.  Average loan growth increased $182.2 million or 3.8% for the second quarter 2024 over the same period in 2023.

During the second quarter of 2024, Visa Inc. accepted the Company’s tender of its 6,528 shares of Visa Class B-1 common stock in exchange for a combination of Visa Class B-2 common stock and Visa Class C common stock.  As a result of the exchange, the Company marked its Visa Class C common stock to fair value and recorded a gain of $1.4 million based on the conversion privilege of the Visa Class C common stock and the closing price of Visa Class A common stock on June 28, 2024 of $262.47 per share. The Company’s Visa Class C shares are expected to continue to be marked to fair value on a recurring basis using the Visa Class A shares as evidence of orderly transactions between market participants for similar securities issued by Visa.  The Company originally obtained the shares in 2008. The strategic decision to retain those shares and not sell them sooner, allowed the Company to avoid commissions and other expenses thus recognizing the full market value.  Further, it is anticipated that there could be future opportunities to exchange Class B-2 shares.

Overview

Chairman, President, and CEO, Robert J. McCormick said “Our success this quarter arises directly from our commitment to the core principles of Trustco Bank: competitive pricing and exceptional customer service.  This clear mission focus enabled us to reach yet another milestone in our loan portfolio, as our residential, home equity, and commercial offerings all grew significantly over this time last year, reaching an all-time high for total loans.  With all revenue streams producing, we realized a 4% increase in net income.  By employing a sharp focus on loan pricing and resisting upward pressure on deposit rates, we realized a 3.7% increase in net interest margin.  All this was accomplished as we not only maintained, but grew capital.  In true Trustco fashion, credit quality remains stellar.  We believe that this momentum positions us well for the remainder of the year.”

Details

Average loans were up $182.2 million or 3.8% in the second quarter 2024 over the same period in 2023.  Average residential loans and home equity lines of credit, our primary lending focus, were up $89.9 million, or 2.1%, and $61.1 million, or 20.1%, respectively, in the second quarter 2024 over the same period in 2023.  Average commercial loans also increased $31.5 million, or 12.7%, in the second quarter 2024 over the same period in 2023.  Average deposits were up $77.4 million, or 1.5% for the second quarter 2024 over the same period in 2023. We believe the increase in time deposits compared to the prior year continues to reflect the desire of customers to have additional funds in the safety and security offered by TrustCo’s long history of conservative banking.  As we move forward, the objective is to encourage customers to retain these additional funds in the expanded product offerings of the Bank through aggressive marketing and product differentiation.

Net interest income was $37.8 million for the second quarter 2024, an increase of $1.2 million, or 3.3%, compared to the prior quarter, driven by loan growth at higher interest rates, an increase in interest on federal funds sold and other short-term investments, and lower cost of deposits, partially offset by lower investment earnings.  The net interest margin for the second quarter 2024 was 2.53%, up 9 basis points from 2.44% in the first quarter of 2024.  The yield on interest earnings assets increased to 4.06%, up 7 basis points from 3.99% in the first quarter of 2024.  The cost of interest bearing liabilities decreased to 1.97% in the second quarter 2024 from 1.99% in the first quarter 2024.  The Bank has seen success in managing deposits by lowering the rates on time deposits and retaining deposit balances, while still being competitive in the markets we serve.  The Federal Reserve’s decision regarding whether to cut or hold rates in the upcoming meetings will have an effect on our ability to continue to decrease deposit costs which should help margin in future quarters, and consequently, should bring down the cost of deposits over time.  Non-interest expense increased $1.6 million over the prior quarter primarily as a result of higher salaries and employee benefits costs.

Page | 2
Asset quality remains strong and has been consistent over the past twelve months.  The Company recorded a provision for credit losses of $500 thousand in the second quarter of 2024, which is the result of a provision for credit losses on loans of $500 thousand, and there was no change in unfunded commitments.  The ratio of allowance for credit losses on loans to total loans was 0.99% and 0.96% as of June 30, 2024 and 2023, respectively.  The allowance for credit losses on loans was $49.8 million at June 30, 2024, compared to $46.9 million at June 30, 2023.  NPLs were $19.2 million at June 30, 2024, compared to $19.4 million at June 30, 2023.  NPLs were 0.38% and 0.40% of total loans at June 30, 2024 and 2023, respectively.  The coverage ratio, or allowance for credit losses on loans to NPLs, was 259.4% at June 30, 2024, compared to 241.6% at June 30, 2023.  NPAs were $21.5 million at June 30, 2024, compared to $20.8 million at June 30, 2023.

At June 30, 2024, our equity to asset ratio was 10.73%, compared to 10.23% at June 30, 2023.  Book value per share at June 30, 2024 was $34.46, up 5.5% compared to $32.66 a year earlier.
 
A conference call to discuss second quarter 2024 results will be held at 9:00 a.m. Eastern Time on July 23, 2024.  Those wishing to participate in the call may dial toll-free for the United States at 1-833-470-1428, and for Canada at 1-833-950-0062, Access code 332275.  A replay of the call will be available for thirty days by dialing toll-free for the United States at 1-866-813-9403, Access code 270896.  The call will also be audio webcast at https://events.q4inc.com/attendee/723112639, and will be available for one year.
 
About TrustCo Bank Corp NY

TrustCo Bank Corp NY is a $6.1 billion savings and loan holding company and through its subsidiary, Trustco Bank, operated 138 offices in New York, New Jersey, Vermont, Massachusetts, and Florida at June 30, 2024.

In addition, the Bank’s Wealth Management Department offers a full range of investment services, retirement planning and trust and estate administration services.  The common shares of TrustCo are traded on the NASDAQ Global Select Market under the symbol TRST.

Page | 3
Forward-Looking Statements

All statements in this news release that are not historical are forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995.  Forward-looking statements can be identified by words such as “anticipate,” “intend,” “plan,” “goal,” “seek,” “believe,” “project,” “estimate,” “expect,” “strategy,” “future,” “likely,” “may,” “should,” “will” and similar references to future development, results or periods. Examples of forward-looking statements include, among others, statements we make regarding our expectations for our future performance, including our expectations regarding the effects of the economic environment on our financial results, our ability to retain customers and the amount of customers’ business, including deposit balances, with us, the impact of the Federal Reserve’s actions regarding interest rates, the growth of loans and deposits throughout our branch network, and our ability to capitalize on economic changes in the areas in which we operate.  Forward-looking statements are based on management’s current expectations as well as certain assumptions and estimates made by, and information available to, management at the time the statements are made. Such forward-looking statements are subject to factors and uncertainties that could cause actual results to differ materially for TrustCo from the views, beliefs and projections expressed in such statements, and many of the risks and uncertainties are heightened by or may, in the future, be heightened by volatility in financial markets and macroeconomic or geopolitical concerns related to inflation, continued elevated interest rates and ongoing armed conflicts (including the Russia/Ukraine conflict and the conflict in Israel and surrounding areas). TrustCo wishes to caution readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. The following important factors, among others, in some cases have affected and in the future could affect TrustCo’s actual results and could cause TrustCo’s actual financial performance to differ materially from that expressed in any forward-looking statement:  future changes in interest rates; ongoing inflationary pressures and continued elevated prices; exposure to credit risk in our lending activities; our increasing commercial loan portfolio; the sufficiency of our allowance for credit losses on loans to cover actual loan losses; our ability to meet the cash flow requirements of our depositors or borrowers or meet our operating cash needs to fund corporate expansion and other activities; claims and litigation pertaining to fiduciary responsibility and lender liability; our dependency upon the services of the management team; our disclosure controls and procedures’ ability to prevent or detect errors or acts of fraud; the adequacy of our business continuity and disaster recovery plans; the effectiveness of our risk management framework; the impact of any expansion by us into new lines of business or new products and services; the impact of severe weather events and climate change on us and the communities we serve, including societal responses to climate change; increasing scrutiny and evolving expectations from customers, regulators, investors, and other stakeholders with respect to our environmental, social and governance practices; the chance of a prolonged economic downturn, especially one affecting our geographic market area; instability in global economic conditions and geopolitical matters, as well as volatility in financial markets; the soundness of other financial institutions; U.S. government shutdowns, credit rating downgrades, or failure to increase the debt ceiling; fluctuations in the trust wealth management fees we receive as a result of investment performance; the impact of regulatory capital rules on our growth; changes in laws and regulations, including changes in cybersecurity or privacy regulations; restrictions on data collection and use; our compliance with the USA PATRIOT Act, Bank Secrecy Act, and other laws and regulations that could result in material fines or sanctions; changes in tax laws; limitations on our ability to pay dividends; TrustCo Realty Corp.’s ability to qualify as a real estate investment trust; changes in accounting standards; competition within our market areas; consumers and businesses’ use of non-banks to complete financial transactions; our reliance on third-party service providers; the impact of data breaches and cyber-attacks; the impact of a failure in or breach of our operational or security systems or infrastructure, or those of third parties; the impact of an unauthorized disclosure of sensitive or confidential client or customer information; the impact of interruptions in the effective operation of our computer systems; the impact of anti-takeover provisions in our organizational documents; the impact of the manner in which we allocate capital; and other risks and uncertainties under the heading “Risk Factors” in our most recent annual report on Form 10-K and, if any, in our subsequent quarterly reports on Form 10-Q or other securities filings. The forward-looking statements contained in this news release represent TrustCo management’s judgment as of the date of this news release. TrustCo disclaims, however, any intent or obligation to update forward-looking statements, either as a result of future developments, new information or otherwise, except as may be required by law.

Page | 4
TRUSTCO BANK CORP NY
GLENVILLE, NY

FINANCIAL HIGHLIGHTS

(dollars in thousands, except per share data)
(Unaudited)
   
Three months ended
  
   
6/30/2024
    
3/31/2024
    
6/30/2023
  
Summary of operations
                  
Net interest income
  
$
37,788
    
$
36,578
    
$
44,052
  
Provision (Credit) for credit losses
    
500
      
600
      
(500
 )
Unrealized gains recognized on equity securities
    
1,360
      
-
      
-
  
Noninterest income, excluding unrealized gains recognized on equity securities
    
4,291
      
4,843
      
4,598
  
Noninterest expense
    
26,459
      
24,903
      
27,327
  
Net income
    
12,551
      
12,126
      
16,372
  
                         
Per share
                        
Net income per share:
                        
- Basic
  
$
0.66
    
$
0.64
    
$
0.86
  
- Diluted
    
0.66
      
0.64
      
0.86
  
Cash dividends
    
0.36
      
0.36
      
0.36
  
Book value at period end
    
34.46
      
34.12
      
32.66
  
Market price at period end
    
28.77
      
28.16
      
28.61
  
                         
At period end
                        
Full time equivalent employees
    
753
      
761
      
791
  
Full service banking offices
    
138
      
139
      
143
  
                         
Performance ratios
                        
Return on average assets
    
0.82
%
    
0.80
%
    
1.09
 %
Return on average equity
    
7.76
      
7.54
      
10.61
  
Efficiency ratio (1)
    
62.84
      
59.94
      
55.87
  
Net interest spread
    
2.09
      
2.00
      
2.74
  
Net interest margin
    
2.53
      
2.44
      
2.98
  
Dividend payout ratio
    
54.57
      
56.48
      
41.83
  
                         
Capital ratios at period end
                        
Consolidated equity to assets
    
10.73
%
    
10.51
%
    
10.23
 %
Consolidated tangible equity to tangible assets (2)
    
10.72
%
    
10.50
%
    
10.22
 %
                         
Asset quality analysis at period end
                        
Nonperforming loans to total loans
    
0.38
%
    
0.37
%
    
0.40
 %
Nonperforming assets to total assets
    
0.35
      
0.33
      
0.34
  
Allowance for credit losses on loans to total loans
    
0.99
      
0.98
      
0.96
  
Coverage ratio (3)
    
2.6
 x
    
2.7
 x
    
2.4
 x

(1) Non-GAAP measure; calculated as noninterest expense (excluding ORE income/expense) divided by taxable equivalent net interest income plus noninterest income (excluding unrealized gains recognized on equity securities). See Non-GAAP Financial Measures Reconciliation.
(2) Non-GAAP measure; calculated as total shareholders’ equity less $553 of intangible assets divided by total assets less $553 of intangible assets.  See Non-GAAP Financial Measures Reconciliation.
(3) Calculated as allowance for credit losses on loans divided by total nonperforming loans.

Page | 5
FINANCIAL HIGHLIGHTS, Continued

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

   
Six Months Ended
  
   
06/30/24
    
06/30/23
  
Summary of operations
            
Net interest income
  
$
74,366
      
91,017
  
Provision (Credit) for credit losses
    
1,100
      
(200
)
Unrealized gains recognized on equity securities
    
1,360
      
-
  
Noninterest income, excluding unrealized gains recognized on equity securities
    
9,134
      
9,267
  
Noninterest expense
    
51,362
      
55,006
  
Net income
    
24,677
      
34,118
  
                 
Per share
                
Net income per share:
                
- Basic
  
$
1.30
      
1.79
  
- Diluted
    
1.30
      
1.79
  
Cash dividends
    
0.72
      
0.72
  
Book value at period end
    
34.46
      
32.66
  
Market price at period end
    
28.77
      
28.61
  
                 
Performance ratios
                
Return on average assets
    
0.81
%
    
1.14
  
Return on average equity
    
7.65
      
11.22
  
Efficiency ratio (1)
    
61.40
      
54.48
  
Net interest spread
    
2.05
      
2.90
  
Net interest margin
    
2.48
      
3.10
  
Dividend payout ratio
    
55.51
      
40.15
  

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

Page | 6
CONSOLIDATED STATEMENTS OF INCOME

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

   
Three months ended
  
   
6/30/2024
    
3/31/2024
    
12/31/2023
    
9/30/2023
    
6/30/2023
  
Interest and dividend income:
                              
Interest and fees on loans
  
$
50,660
    
$
49,804
    
$
49,201
    
$
47,921
    
$
46,062
  
Interest and dividends on securities available for sale:
                                        
U. S. government sponsored enterprises
    
909
      
906
      
750
      
672
      
691
  
State and political subdivisions
    
1
      
-
      
1
      
-
      
1
  
Mortgage-backed securities and collateralized mortgage obligations - residential
    
1,451
      
1,494
      
1,533
      
1,485
      
1,543
  
Corporate bonds
    
362
      
476
      
477
      
473
      
516
  
Small Business Administration - guaranteed participation securities
    
94
      
100
      
102
      
107
      
111
  
Other securities
    
2
      
3
      
3
      
2
      
3
  
Total interest and dividends on securities available for sale
    
2,819
      
2,979
      
2,866
      
2,739
      
2,865
  
                                         
Interest on held to maturity securities:
                                        
Mortgage-backed securities and collateralized mortgage obligations - residential
    
65
      
68
      
70
      
73
      
75
  
Total interest on held to maturity securities
    
65
      
68
      
70
      
73
      
75
  
                                         
Federal Home Loan Bank stock
    
147
      
152
      
149
      
131
      
110
  
                                         
Interest on federal funds sold and other short-term investments
    
6,894
      
6,750
      
6,354
      
6,688
      
6,970
  
Total interest income
    
60,585
      
59,753
      
58,640
      
57,552
      
56,082
  
                                         
Interest expense:
                                        
Interest on deposits:
                                        
Interest-bearing checking
    
288
      
240
      
165
      
102
      
49
  
Savings
    
675
      
712
      
707
      
639
      
655
  
Money market deposit accounts
    
2,228
      
2,342
      
2,500
      
2,384
      
1,756
  
Time deposits
    
19,400
      
19,677
      
16,460
      
11,962
      
9,291
  
Interest on short-term borrowings
    
206
      
204
      
201
      
244
      
279
  
Total interest expense
    
22,797
      
23,175
      
20,033
      
15,331
      
12,030
  
                                         
Net interest income
    
37,788
      
36,578
      
38,607
      
42,221
      
44,052
  
                                         
Less: Provision (Credit) for credit losses
    
500
      
600
      
1,350
      
100
      
(500
)
Net interest income after provision (credit) for credit losses
    
37,288
      
35,978
      
37,257
      
42,121
      
44,552
  
                                         
Noninterest income:
                                        
Trustco Financial Services income
    
1,609
      
1,816
      
1,612
      
1,627
      
1,412
  
Fees for services to customers
    
2,399
      
2,745
      
2,563
      
2,590
      
2,847
  
Unrealized gains recognized on equity securities
    
1,360
      
-
      
-
      
-
      
-
  
Other
    
283
      
282
      
299
      
357
      
339
  
Total noninterest income
    
5,651
      
4,843
      
4,474
      
4,574
      
4,598
  
                                         
Noninterest expenses:
                                        
Salaries and employee benefits
    
12,520
      
11,427
      
12,444
      
12,393
      
13,122
  
Net occupancy expense
    
4,375
      
4,611
      
4,209
      
4,358
      
4,262
  
Equipment expense
    
1,990
      
1,738
      
1,852
      
1,923
      
1,873
  
Professional services
    
1,570
      
1,460
      
1,561
      
1,717
      
1,360
  
Outsourced services
    
2,755
      
2,501
      
2,532
      
2,720
      
2,491
  
Advertising expense
    
466
      
408
      
384
      
586
      
518
  
FDIC and other insurance
    
797
      
1,094
      
1,085
      
1,078
      
1,085
  
Other real estate expense (income), net
    
16
      
74
      
(12
)
    
163
      
148
  
Other
    
1,970
      
1,590
      
4,776
      
2,522
      
2,468
  
Total noninterest expenses
    
26,459
      
24,903
      
28,831
      
27,460
      
27,327
  
                                         
Income before taxes
    
16,480
      
15,918
      
12,900
      
19,235
      
21,823
  
Income taxes
    
3,929
      
3,792
      
3,052
      
4,555
      
5,451
  
                                         
Net income
  
$
12,551
    
$
12,126
    
$
9,848
    
$
14,680
    
$
16,372
  
                                         
Net income per common share:
                                        
- Basic
  
$
0.66
    
$
0.64
    
$
0.52
    
$
0.77
    
$
0.86
  
 
                                        
- Diluted
    
0.66
      
0.64
      
0.52
      
0.77
      
0.86
  
                                         
Average basic shares (in thousands)
    
19,022
      
19,024
      
19,024
      
19,024
      
19,024
  
Average diluted shares (in thousands)
    
19,033
      
19,032
      
19,026
      
19,024
      
19,024
  

Page | 7
CONSOLIDATED STATEMENTS OF INCOME, Continued

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

   
Six Months Ended
  
   
06/30/24
    
06/30/23
  
Interest and dividend income:
            
Interest and fees on loans
  
$
100,464
      
90,334
  
Interest and dividends on securities available for sale:
                
U. S. government sponsored enterprises
    
1,815
      
1,383
  
State and political subdivisions
    
1
      
1
  
Mortgage-backed securities and collateralized mortgage obligations - residential
    
2,945
      
3,128
  
Corporate bonds
    
838
      
1,037
  
Small Business Administration - guaranteed participation securities
    
194
      
228
  
Other securities
    
5
      
5
  
Total interest and dividends on securities available for sale
    
5,798
      
5,782
  
                 
Interest on held to maturity securities:
                
Mortgage-backed securities-residential
    
133
      
153
  
Total interest on held to maturity securities
    
133
      
153
  
                 
Federal Home Loan Bank stock
    
299
      
220
  
                 
Interest on federal funds sold and other short-term investments
    
13,644
      
13,525
  
Total interest income
    
120,338
      
110,014
  
                 
Interest expense:
                
Interest on deposits:
                
Interest-bearing checking
    
528
      
115
  
Savings
    
1,387
      
1,185
  
Money market deposit accounts
    
4,570
      
2,570
  
Time deposits
    
39,077
      
14,563
  
Interest on short-term borrowings
    
410
      
564
  
Total interest expense
    
45,972
      
18,997
  
                 
Net interest income
    
74,366
      
91,017
  
                 
Less: Provision (Credit) for credit losses
    
1,100
      
(200
)
Net interest income after provision (credit) for credit losses
    
73,266
      
91,217
  
                 
Noninterest income:
                
Trustco Financial Services income
    
3,425
      
3,186
  
Fees for services to customers
    
5,144
      
5,495
  
Unrealized gains recognized on equity securities
    
1,360
      
-
  
Other
    
565
      
586
  
Total noninterest income
    
10,494
      
9,267
  
                 
Noninterest expenses:
                
Salaries and employee benefits
    
23,947
      
26,405
  
Net occupancy expense
    
8,986
      
8,860
  
Equipment expense
    
3,728
      
3,835
  
Professional services
    
3,030
      
2,967
  
Outsourced services
    
5,256
      
4,787
  
Advertising expense
    
874
      
908
  
FDIC and other insurance
    
1,891
      
2,137
  
Other real estate expense, net
    
90
      
373
  
Other
    
3,560
      
4,734
  
Total noninterest expenses
    
51,362
      
55,006
  
                 
Income before taxes
    
32,398
      
45,478
  
Income taxes
    
7,721
      
11,360
  
                 
Net income
  
$
24,677
      
34,118
  
                 
Net income per common share:
                
- Basic
  
$
1.30
      
1.79
  
 
                
- Diluted
    
1.30
      
1.79
  
                 
Average basic shares (in thousands)
    
19,023
      
19,024
  
Average diluted shares (in thousands)
    
19,033
      
19,025
  

Page | 8
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

(dollars in thousands)
(Unaudited)

   
6/30/2024
    
3/31/2024
    
12/31/2023
    
9/30/2023
    
6/30/2023
  
ASSETS:
                              
                               
Cash and due from banks
  
$
42,193
    
$
44,868
    
$
49,274
    
$
45,940
    
$
55,662
  
Federal funds sold and other short term investments
    
493,920
      
564,815
      
528,730
      
461,321
      
547,695
  
Total cash and cash equivalents
    
536,113
      
609,683
      
578,004
      
507,261
      
603,357
  
                                         
Securities available for sale:
                                        
U. S. government sponsored enterprises
    
106,796
      
128,854
      
118,668
      
121,474
      
113,570
  
States and political subdivisions
    
26
      
26
      
26
      
34
      
34
  
Mortgage-backed securities and collateralized mortgage obligations - residential
    
218,311
      
227,078
      
237,677
      
233,719
      
243,444
  
Small Business Administration - guaranteed participation securities
    
15,592
      
16,260
      
17,186
      
17,316
      
18,382
  
Corporate bonds
    
53,764
      
53,341
      
78,052
      
76,935
      
76,618
  
Other securities
    
688
      
682
      
680
      
657
      
656
  
Total securities available for sale
    
395,177
      
426,241
      
452,289
      
450,135
      
452,704
  
                                         
Held to maturity securities:
                                        
Mortgage-backed securities and collateralized mortgage obligations-residential
    
5,921
      
6,206
      
6,458
      
6,724
      
7,043
  
Total held to maturity securities
    
5,921
      
6,206
      
6,458
      
6,724
      
7,043
  
                                         
Federal Reserve Bank and Federal Home Loan Bank stock
    
6,507
      
6,203
      
6,203
      
6,203
      
6,203
  
                                         
Loans:
                                        
Commercial
    
282,441
      
279,092
      
273,515
      
268,642
      
251,434
  
Residential mortgage loans
    
4,370,640
      
4,354,369
      
4,365,063
      
4,343,006
      
4,310,005
  
Home equity line of credit
    
370,063
      
355,879
      
347,415
      
332,028
      
308,976
  
Installment loans
    
15,168
      
16,166
      
16,886
      
16,605
      
16,396
  
Loans, net of deferred net costs
    
5,038,312
      
5,005,506
      
5,002,879
      
4,960,281
      
4,886,811
  
                                         
Less: Allowance for credit losses on loans
    
49,772
      
49,220
      
48,578
      
47,226
      
46,914
  
Net loans
    
4,988,540
      
4,956,286
      
4,954,301
      
4,913,055
      
4,839,897
  
                                         
Bank premises and equipment, net
    
33,466
      
33,423
      
34,007
      
32,135
      
32,351
  
Operating lease right-of-use assets
    
38,376
      
39,647
      
40,542
      
41,475
      
43,113
  
Other assets
    
102,544
      
101,881
      
96,387
      
97,310
      
90,957
  
                                         
Total assets
  
$
6,106,644
    
$
6,179,570
    
$
6,168,191
    
$
6,054,298
    
$
6,075,625
  
                                         
LIABILITIES:
                                        
Deposits:
                                        
Demand
  
$
745,227
    
$
742,997
    
$
754,532
    
$
773,293
    
$
791,353
  
Interest-bearing checking
    
1,029,606
      
1,020,136
      
1,015,213
      
1,033,898
      
1,082,989
  
Savings accounts
    
1,144,427
      
1,155,517
      
1,179,241
      
1,235,658
      
1,315,893
  
Money market deposit accounts
    
517,445
      
532,611
      
565,767
      
610,012
      
625,253
  
Time deposits
    
1,840,262
      
1,903,908
      
1,836,024
      
1,581,504
      
1,442,959
  
Total deposits
    
5,276,967
      
5,355,169
      
5,350,777
      
5,234,365
      
5,258,447
  
                                         
Short-term borrowings
    
89,720
      
94,374
      
88,990
      
103,110
      
113,765
  
Operating lease liabilities
    
42,026
      
43,438
      
44,471
      
45,418
      
47,172
  
Accrued expenses and other liabilities
    
42,763
      
37,399
      
38,668
      
47,479
      
34,852
  
                                         
Total liabilities
    
5,451,476
      
5,530,380
      
5,522,906
      
5,430,372
      
5,454,236
  
                                         
SHAREHOLDERS’ EQUITY:
                                        
Capital stock
    
20,058
      
20,058
      
20,058
      
20,058
      
20,058
  
Surplus
    
257,490
      
257,335
      
257,181
      
257,078
      
257,078
  
Undivided profits
    
436,048
      
430,346
      
425,069
      
422,082
      
414,251
  
Accumulated other comprehensive loss, net of tax
    
(14,268
)
    
(14,763
)
    
(13,237
)
    
(31,506
)
    
(26,212
)
Treasury stock at cost
    
(44,160
)
    
(43,786
)
    
(43,786
)
    
(43,786
)
    
(43,786
)
                                         
Total shareholders’ equity
    
655,168
      
649,190
      
645,285
      
623,926
      
621,389
  
 
                                        
Total liabilities and shareholders’ equity
  
$
6,106,644
    
$
6,179,570
    
$
6,168,191
    
$
6,054,298
    
$
6,075,625
  
                                         
Outstanding shares (in thousands)
    
19,010
      
19,024
      
19,024
      
19,024
      
19,024
  

Page | 9
NONPERFORMING ASSETS

(dollars in thousands)
(Unaudited)

   
6/30/2024
    
3/31/2024
    
12/31/2023
    
9/30/2023
    
6/30/2023
  
Nonperforming Assets
                              
                               
New York and other states*
                              
Loans in nonaccrual status:
                              
Commercial
  
$
741
    
$
532
    
$
536
    
$
540
    
$
545
  
Real estate mortgage - 1 to 4 family
    
14,992
      
14,359
      
14,375
      
14,633
      
16,260
  
Installment
    
131
      
149
      
151
      
93
      
124
  
Total non-accrual loans
    
15,864
      
15,040
      
15,062
      
15,266
      
16,929
  
Other nonperforming real estate mortgages - 1 to 4 family
    
-
      
-
      
3
      
5
      
7
  
Total nonperforming loans
    
15,864
      
15,040
      
15,065
      
15,271
      
16,936
  
Other real estate owned
    
2,334
      
2,334
      
194
      
1,185
      
1,412
  
Total nonperforming assets
  
$
18,198
    
$
17,374
    
$
15,259
    
$
16,456
    
$
18,348
  
                                         
Florida
                                        
Loans in nonaccrual status:
                                        
Commercial
  
$
314
    
$
314
    
$
314
    
$
314
    
$
314
  
Real estate mortgage - 1 to 4 family
    
2,985
      
2,921
      
2,272
      
2,228
      
2,170
  
Installment
    
22
      
-
      
15
      
65
      
-
  
Total non-accrual loans
    
3,321
      
3,235
      
2,601
      
2,607
      
2,484
  
Other nonperforming real estate mortgages - 1 to 4 family
    
-
      
-
      
-
      
-
      
-
  
Total nonperforming loans
    
3,321
      
3,235
      
2,601
      
2,607
      
2,484
  
Other real estate owned
    
-
      
-
      
-
      
-
      
-
  
Total nonperforming assets
  
$
3,321
    
$
3,235
    
$
2,601
    
$
2,607
    
$
2,484
  
                                         
Total
                                        
Loans in nonaccrual status:
                                        
Commercial
  
$
1,055
    
$
846
    
$
850
    
$
854
    
$
859
  
Real estate mortgage - 1 to 4 family
    
17,977
      
17,280
      
16,647
      
16,861
      
18,430
  
Installment
    
153
      
149
      
166
      
158
      
124
  
Total non-accrual loans
    
19,185
      
18,275
      
17,663
      
17,873
      
19,413
  
Other nonperforming real estate mortgages - 1 to 4 family
    
-
      
-
      
3
      
5
      
7
  
Total nonperforming loans
    
19,185
      
18,275
      
17,666
      
17,878
      
19,420
  
Other real estate owned
    
2,334
      
2,334
      
194
      
1,185
      
1,412
  
Total nonperforming assets
  
$
21,519
    
$
20,609
    
$
17,860
    
$
19,063
    
$
20,832
  
                                         
Quarterly Net (Recoveries) Chargeoffs
                                        
                                         
New York and other states*
                                        
Commercial
  
$
-
    
$
-
    
$
-
    
$
-
    
$
(129
)
Real estate mortgage - 1 to 4 family
    
(74
)
    
(78
)
    
219
      
(26
)
    
(161
)
Installment
    
(2
)
    
36
      
23
      
14
      
21
  
Total net (recoveries) chargeoffs
  
$
(76
)
  
$
(42
)
  
$
242
    
$
(12
)
  
$
(269
)
                                         
Florida
                                        
Commercial
  
$
-
    
$
-
    
$
-
    
$
-
    
$
-
  
Real estate mortgage - 1 to 4 family
    
17
      
-
      
-
      
-
      
-
  
Installment
    
7
      
-
      
6
      
-
      
40
  
Total net (recoveries) chargeoffs
  
$
24
    
$
-
    
$
6
    
$
-
    
$
40
  
                                         
Total
                                        
Commercial
  
$
-
    
$
-
    
$
-
    
$
-
    
$
(129
)
Real estate mortgage - 1 to 4 family
    
(57
)
    
(78
)
    
219
      
(26
)
    
(161
)
Installment
    
5
      
36
      
29
      
14
      
61
  
Total net (recoveries) chargeoffs
  
$
(52
)
  
$
(42
)
  
$
248
    
$
(12
)
  
$
(229
)
                                         
Asset Quality Ratios
                                        
                                         
Total nonperforming loans (1)
  
$
19,185
    
$
18,275
    
$
17,666
    
$
17,878
    
$
19,420
  
Total nonperforming assets (1)
    
21,519
      
20,609
      
17,860
      
19,063
      
20,832
  
Total net (recoveries) chargeoffs  (2)
    
(52
)
    
(42
)
    
248
      
(12
)
    
(229
)
                                         
Allowance for credit losses on loans (1)
    
49,772
      
49,220
      
48,578
      
47,226
      
46,914
  
                                         
Nonperforming loans to total loans
    
0.38
%
    
0.37
%
    
0.35
%
    
0.36
%
    
0.40
%
Nonperforming assets to total assets
    
0.35
%
    
0.33
%
    
0.29
%
    
0.31
%
    
0.34
%
Allowance for credit losses on loans to total loans
    
0.99
%
    
0.98
%
    
0.97
%
    
0.95
%
    
0.96
%
Coverage ratio (1)
    
259.4
%
    
269.3
%
    
275.0
%
    
264.2
%
    
241.6
%
Annualized net (recoveries) chargeoffs to average loans (2)
    
0.00
%
    
0.00
%
    
0.02
%
    
0.00
%
    
-0.02
%
Allowance for credit losses on loans to annualized net chargeoffs (2)
    
N/A
      
N/A
      
49.0
x
    
N/A
      
N/A
  

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

Page | 10
DISTRIBUTION OF ASSETS, LIABILITIES AND SHAREHOLDERS’ EQUITY -
INTEREST RATES AND INTEREST DIFFERENTIAL

dollars in thousands)
                                    
(Unaudited)
  
Three months ended
    
Three months ended
  
   
June 30, 2024
    
June 30, 2023
  
   
Average
    
Interest
    
Average
    
Average
    
Interest
    
Average
  
   
Balance
          
Rate
    
Balance
          
Rate
  
Assets
                                    
                                     
Securities available for sale:
                                    
U. S. government sponsored enterprises
  
$
113,844
    
$
909
      
3.20
%
  
$
120,646
    
$
691
      
2.29
%
Mortgage backed securities and collateralized mortgage obligations - residential
    
250,517
      
1,451
      
2.30
      
278,367
      
1,543
      
2.20
  
State and political subdivisions
    
26
      
1
      
6.75
      
34
      
1
      
6.74
  
Corporate bonds
    
55,065
      
362
      
2.63
      
85,344
      
516
      
2.42
  
Small Business Administration - guaranteed participation securities
    
17,436
      
94
      
2.15
      
20,724
      
111
      
2.15
  
Other
    
694
      
2
      
1.15
      
686
      
3
      
1.75
  
                                                 
Total securities available for sale
    
437,582
      
2,819
      
2.58
      
505,801
      
2,865
      
2.27
  
                                                 
Federal funds sold and other short-term Investments
    
506,493
      
6,894
      
5.48
      
551,087
      
6,970
      
5.07
  
                                                 
Held to maturity securities:
                                                
Mortgage backed securities and collateralized mortgage obligations - residential
    
6,054
      
65
      
4.28
      
7,204
      
75
      
4.17
  
                                                 
Total held to maturity securities
    
6,054
      
65
      
4.28
      
7,204
      
75
      
4.17
  
                                                 
Federal Home Loan Bank stock
    
6,340
      
147
      
9.27
      
5,868
      
110
      
7.50
  
                                                 
Commercial loans
    
280,559
      
3,765
      
5.37
      
249,040
      
3,295
      
5.29
  
Residential mortgage loans
    
4,359,232
      
40,819
      
3.75
      
4,269,295
      
37,992
      
3.56
  
Home equity lines of credit
    
364,210
      
5,814
      
6.42
      
303,134
      
4,533
      
6.00
  
Installment loans
    
15,395
      
262
      
6.86
      
15,734
      
242
      
6.16
  
                                                 
Loans, net of unearned income
    
5,019,396
      
50,660
      
4.04
      
4,837,203
      
46,062
      
3.81
  
                                                 
Total interest earning assets
    
5,975,865
    
$
60,585
      
4.06
      
5,907,163
    
$
56,082
      
3.80
  
                                                 
Allowance for credit losses on loans
    
(49,454
)
                    
(47,060
)
                
Cash & non-interest earning assets
    
181,688
                      
172,821
                  
                                                 
Total assets
  
$
6,108,099
                    
$
6,032,924
                  
                                                 
Liabilities and shareholders’ equity
                                                
                                                 
Deposits:
                                                
Interest bearing checking accounts
  
$
1,009,048
    
$
288
      
0.11
%
  
$
1,083,795
    
$
49
      
0.02
%
Money market accounts
    
524,068
      
2,228
      
1.71
      
613,204
      
1,756
      
1.15
  
Savings
    
1,145,922
      
675
      
0.24
      
1,352,181
      
655
      
0.19
  
Time deposits
    
1,873,139
      
19,400
      
4.17
      
1,372,248
      
9,291
      
2.72
  
                                                 
Total interest bearing deposits
    
4,552,177
      
22,591
      
2.00
      
4,421,428
      
11,751
      
1.07
  
Short-term borrowings
    
93,703
      
206
      
0.89
      
124,089
      
279
      
0.90
  
                                                 
Total interest bearing liabilities
    
4,645,880
    
$
22,797
      
1.97
      
4,545,517
    
$
12,030
      
1.06
  
                                                 
Demand deposits
    
735,262
                      
788,654
                  
Other liabilities
    
76,258
                      
79,839
                  
Shareholders’ equity
    
650,699
                      
618,914
                  
                                                 
Total liabilities and shareholders’ equity
  
$
6,108,099
                    
$
6,032,924
                  
                                                 
Net interest income, GAAP and non-GAAP tax equivalent (1)
          
$
37,788
                    
$
44,052
          
                                                 
Net interest spread, GAAP and non-GAAP tax equivalent (1)
                    
2.09
%
                    
2.74
%
                                                 
Net interest margin (net interest income to total interest earning assets), GAAP and non-GAAP tax equivalent (1)
                    
2.53
%
                    
2.98
%
                                                 
Tax equivalent adjustment (1)
            
-
                      
-
          
                                                 
Net interest income
          
$
37,788
                    
$
44,052
          

(1) Tax equivalent adjustment to a measure results in a non-GAAP financial measure.  See Non-GAAP Financial Measures Reconciliation.

Page | 11
DISTRIBUTION OF ASSETS, LIABILITIES AND SHAREHOLDERS’ EQUITY -
INTEREST RATES AND INTEREST DIFFERENTIAL, Continued

(dollars in thousands)
                                    
(Unaudited)
  
Six Months Ended
    
Six Months Ended
  
   
June 30, 2024
    
June 30, 2023
  
   
Average
    
Interest
    
Average
    
Average
    
Interest
    
Average
  
   
Balance
          
Rate
    
Balance
          
Rate
  
Assets
                                    
                                     
Securities available for sale:
                                    
U. S. government sponsored enterprises
  
$
119,908
     $
1,815
      
3.03
%
  
$
120,669
     $
1,383
      
2.29
%
Mortgage backed securities and collateralized mortgageobligations - residential
    
254,665
      
2,945
      
2.31
      
282,683
      
3,128
      
2.21
  
State and political subdivisions
    
26
      
1
      
6.82
      
34
      
1
      
6.74
  
Corporate bonds
    
64,345
      
838
      
2.60
      
85,460
      
1,037
      
2.43
  
Small Business Administration - guaranteed participation securities
    
17,830
      
194
      
2.18
      
21,423
      
228
      
2.13
  
Other
    
695
      
5
      
1.44
      
686
      
5
      
1.46
  
                                                 
Total securities available for sale
    
457,469
      
5,798
      
2.53
      
510,955
      
5,782
      
2.26
  
                                                 
Federal funds sold and other short-term Investments
    
502,072
      
13,644
      
5.47
      
563,938
      
13,525
      
4.84
  
                                                 
Held to maturity securities:
                                                
Mortgage backed securities and collateralized mortgage obligations - residential
    
6,192
      
133
      
4.29
      
7,372
      
153
      
4.16
  
                                                 
Total held to maturity securities
    
6,192
      
133
      
4.29
      
7,372
      
153
      
4.16
  
                                                 
Federal Home Loan Bank stock
    
6,271
      
299
      
9.54
      
5,833
      
220
      
7.54
  
                                                 
Commercial loans
    
278,871
      
7,425
      
5.33
      
243,983
      
6,319
      
5.18
  
Residential mortgage loans
    
4,359,351
      
81,236
      
3.73
      
4,241,207
      
74,906
      
3.54
  
Home equity lines of credit
    
358,607
      
11,277
      
6.32
      
297,262
      
8,652
      
5.87
  
Installment loans
    
15,761
      
526
      
6.72
      
14,535
      
457
      
6.35
  
                                                 
Loans, net of unearned income
    
5,012,590
      
100,464
      
4.01
      
4,796,987
      
90,334
      
3.77
  
                                                 
Total interest earning assets
    
5,984,594
     $
120,338
      
4.03
      
5,885,085
     $
110,014
      
3.75
  
                                                 
Allowance for credit losses on loans
    
(49,139
)
                    
(46,677
)
                
Cash & non-interest earning assets
    
188,364
                      
173,990
                  
                                                 
Total assets
  
$
6,123,819
                    
$
6,012,398
                  
                                                 
Liabilities and shareholders’ equity
                                                
                                                 
Deposits:
                                                
Interest bearing checking accounts
  
$
999,589
      
528
      
0.11
%
  
$
1,108,452
      
115
      
0.02
%
Money market accounts
    
534,378
      
4,570
      
1.72
      
607,064
      
2,570
      
0.85
  
Savings
    
1,152,241
      
1,387
      
0.24
      
1,403,924
      
1,185
      
0.17
  
Time deposits
    
1,881,535
      
39,077
      
4.18
      
1,267,193
      
14,563
      
2.32
  
                                                 
Total interest bearing deposits
    
4,567,743
    
45,562
      
2.01
      
4,386,633
    
18,433
      
0.85
  
Short-term borrowings
    
93,510
      
410
      
0.88
      
127,957
      
564
      
0.89
  
                                                 
Total interest bearing liabilities
    
4,661,253
     $
45,972
      
1.98
      
4,514,590
     $
18,997
      
0.85
  
                                                 
Demand deposits
    
730,781
                      
802,533
                  
Other liabilities
    
83,105
                      
81,954
                  
Shareholders’ equity
    
648,680
                      
613,321
                  
                                                 
Total liabilities and shareholders’ equity
  
$
6,123,819
                    
$
6,012,398
                  
                                                 
Net interest income, GAAP and non-GAAP tax equivalent (1)
           $
74,366
                     $
91,017
          
                                                 
Net interest spread, GAAP and non-GAAP tax equivalent (1)
                    
2.05
%
                    
2.90
%
                                                 
Net interest margin (net interest income to total interest earning assets), GAAP and non-GAAP tax equivalent (1)
                    
2.48
%
                    
3.10
%
                                                 
Tax equivalent adjustment (1)
            
-
                      
-
          
                                                 
Net interest income
           $
74,366
                     $
91,017
          

(1) Tax equivalent adjustment to a measure results in a non-GAAP financial measure.  See Non-GAAP Financial Measures Reconciliation.

Page | 12
Non-GAAP Financial Measures Reconciliation

Tangible book value per share is a non-GAAP financial measure derived from GAAP-based amounts. We calculate tangible book value by excluding the balance of intangible assets from total shareholders’ equity divided by shares outstanding. We believe that this is consistent with the treatment by bank regulatory agencies, which exclude intangible assets from the calculation of risk-based capital ratios. Additionally, we believe that this measure is important to many investors in the marketplace who are interested in relative changes from period to period in equity exclusive of changes in intangible assets.

Tangible equity as a percentage of tangible assets at period end is a non-GAAP financial measure derived from GAAP-based amounts. We calculate tangible equity and tangible assets by excluding the balance of intangible assets from total shareholders’ equity and total assets, respectively.  We calculate tangible equity as a percentage of tangible assets at period end by dividing tangible equity by tangible assets at period end.  We believe that this is consistent with the treatment by bank regulatory agencies, which exclude intangible assets from the calculation of risk-based capital ratios.  Additionally, we believe that this measure is important to many investors in the marketplace who are interested in relative changes from period to period in equity and total assets, each exclusive of changes in intangible assets.

Net interest income is commonly presented on a taxable equivalent basis. That is, to the extent that some component of the institution’s net interest income will be exempt from taxation (e.g., was received by the institution as a result of its holdings of state or municipal obligations), an amount equal to the tax benefit derived from that component is added back to the net interest income total. Management considers this adjustment helpful to investors in comparing one financial institution’s net interest income (pre- tax) to that of another institution, as each will have a different proportion of tax-exempt items in their portfolios. Moreover, net interest income is itself a component of another financial measure commonly used by financial institutions, net interest margin, which is the ratio of net interest income to average interest earning assets.  Additionally, management and many financial institutions also present net interest spread, which is the average yield on interest earning assets minus the average rate paid on interest bearing liabilities. For purposes of these measures as well, taxable equivalent net interest income is generally used by financial institutions, again to provide investors with a better basis of comparison from institution to institution. We calculate taxable equivalent net interest margin by dividing net interest income, adjusted to include the benefit of non-taxable interest income, by average interest earning assets.  We calculate taxable equivalent net interest spread as the difference between average yield on interest earning assets, adjusted to include the benefit of non-taxable interest income, and the average rate paid on interest bearing liabilities.

The efficiency ratio is a non-GAAP measure of expense control relative to revenue from net interest income and non-interest fee income.  We calculate the efficiency ratio by dividing total noninterest expenses as determined under GAAP, excluding other real estate expense, net, by net interest income (fully taxable equivalent) and total noninterest income as determined under GAAP, excluding unrealized gains recognized on equity securities.  We believe that this provides a reasonable measure of primary banking expenses relative to primary banking revenue.  Additionally, we believe this measure is important to investors looking for a measure of efficiency in our productivity measured by the amount of revenue generated for each dollar spent.

We believe that these non-GAAP financial measures provide information that is important to investors and that is useful in understanding our financial results. Our management internally assesses our performance based, in part, on these measures.  However, these non-GAAP financial measures are supplemental and not a substitute for an analysis based on GAAP measures. As other companies may use different calculations for these measures, this presentation may not be comparable to other similarly titled measures reported by other companies. A reconciliation of the non-GAAP measures of tangible equity as a percentage of tangible assets, and efficiency ratio to the most directly comparable GAAP measures is set forth below.  We have not presented a reconciliation of taxable equivalent net interest income, taxable equivalent net interest margin or taxable equivalent net interest spread to the most directly comparable GAAP measure, as there was no difference between the taxable equivalent measure and comparable GAAP measure for any period presented in this release.

Page | 13
NON-GAAP FINANCIAL MEASURES RECONCILIATION

(dollars in thousands)
(Unaudited)

   
6/30/2024
    
3/31/2024
    
6/30/2023
  
Tangible Book Value Per Share
                  
                   
Equity (GAAP)
  
$
655,168
    
$
649,190
    
$
621,389
  
Less: Intangible assets
    
553
      
553
      
553
  
Tangible equity (Non-GAAP)
  
$
654,615
    
$
648,637
    
$
620,836
  
                         
Shares outstanding
    
19,010
      
19,024
      
19,024
  
Tangible book value per share
    
34.44
      
34.10
      
32.63
  
Book value per share
    
34.46
      
34.12
      
32.66
  
                         
Tangible Equity to Tangible Assets
                        
Total Assets (GAAP)
  
$
6,106,644
    
$
6,179,570
    
$
6,075,625
  
Less: Intangible assets
    
553
      
553
      
553
  
Tangible assets (Non-GAAP)
  
$
6,106,091
    
$
6,179,017
    
$
6,075,072
  
                         
Tangible Equity to Tangible Assets (Non-GAAP)
    
10.72
%
    
10.50
%
    
10.22
%
Equity to Assets (GAAP)
    
10.73
%
    
10.51
%
    
10.23
%

   
Three months ended
    
Six Months Ended
  
Efficiency Ratio
  
6/30/2024
    
3/31/2024
    
6/30/2023
    
6/30/2024
    
6/30/2023
  
                               
Net interest income (GAAP)
  
$
37,788
    
$
36,578
    
$
44,052
    
$
74,366
    
$
91,017
  
Taxable equivalent adjustment
    
-
      
-
      
-
      
-
      
-
  
Net interest income (fully taxable equivalent) (Non-GAAP)
    
37,788
      
36,578
      
44,052
      
74,366
      
91,017
  
Non-interest income (GAAP)
    
5,651
      
4,843
      
4,598
      
10,494
      
9,267
  
Less:  Unrealized gains recognized on equity securities
    
1,360
      
-
      
-
      
1,360
      
-
  
Revenue used for efficiency ratio (Non-GAAP)
  
$
42,079
    
$
41,421
    
$
48,650
    
$
83,500
    
$
100,284
  
                                         
Total noninterest expense (GAAP)
  
$
26,459
    
$
24,903
    
$
27,327
    
$
51,362
    
$
55,006
  
Less:  Other real estate expense, net
    
16
      
74
      
148
      
90
      
373
  
Expense used for efficiency ratio (Non-GAAP)
  
$
26,443
    
$
24,829
    
$
27,179
    
$
51,272
    
$
54,633
  
                                         
Efficiency Ratio
    
62.84
%
    
59.94
%
    
55.87
%
    
61.40
%
    
54.48
%


Page | 14