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What changed in TRUSTCO BANK CORP N Y's 10-K — 2022 vs 2023

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Paragraph-level year-over-year comparison of TRUSTCO BANK CORP N Y's 2022 and 2023 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2023 report.

+236 added−169 removedSource: 10-K (2024-03-11) vs 10-K (2023-03-01)

Top changes in TRUSTCO BANK CORP N Y's 2023 10-K

236 paragraphs added · 169 removed · 146 edited across 7 sections

Item 1. Business

Business — how the company describes what it does

76 edited+32 added−10 removed138 unchanged
Biggest changeIn November 2021, the federal banking agencies adopted new rules requiring banking organizations to notify their primary regulator within 36 hours of becoming aware of a “computer-security incident” that rises to the level of a “notification incident.” The new rules also require bank service providers to notify their banking organization customers when it becomes aware of similar incidents.
Biggest changeIn November 2021, the federal banking agencies adopted new rules requiring banking organizations to notify their primary regulator within 36 hours of becoming aware of a “computer-security incident” that rises to the level of a “notification incident.” A notification incident is a “computer-security incident” that has materially disrupted or degraded, or is reasonably likely to materially disrupt or degrade, the banking organization’s ability to deliver services to a material portion of its customer base, jeopardize the viability of key operations of the banking organization, or impact the stability of the financial sector.
Because the FDIC provides deposit insurance to the Bank, the Bank is also subject to its supervision and regulation even though the FDIC is not the Bank ’ s primary federal regulator.
Because the FDIC provides deposit insurance to the Bank, the Bank also is subject to its supervision and regulation even though the FDIC is not the Bank ’ s primary federal regulator.
The following summary of laws and regulations applicable to the Company or the Bank is not intended to be a complete description of those laws and regulations or their effects on the Company and the Bank, and it is qualified in its entirety by reference to the particular statutory and regulatory provisions described.
The following summary of laws and regulations applicable to the Company and those applicable to the Bank is not intended to be a complete description of those laws and regulations or their effects on the Company and the Bank. The summary is qualified in its entirety by reference to the particular statutory and regulatory provisions described.
Furthermore, our inclusion efforts focus on age, where we seek to recruit younger candidates to create long-term career potential, while seeking to retain our experienced team members for the many benefits their presence yields. 16 Index Employee Compensation and Benefits Our human capital strategy objectives include identifying, recruiting, retaining, incentivizing and integrating our existing and future employees.
Furthermore, our inclusion efforts focus on age, where we seek to recruit younger candidates to create long-term career potential, while seeking to retain our experienced team members for the many benefits their presence yields. Employee Compensation and Benefits Our human capital strategy objectives include identifying, recruiting, retaining, incentivizing and integrating our existing and future employees.
The Regulatory Relief Act also expanded the definition of qualified mortgages that may be held by a financial institution and simplifies the regulatory capital rules for financial institutions and their holding companies with total consolidated assets of less than $10 billion by instructing the federal banking regulators to establish a single "Community Bank Leverage Ratio" of 9 percent.
The Regulatory Relief Act also expanded the definition of qualified mortgages that may be held by a financial institution and simplified the regulatory capital rules for financial institutions and their holding companies with total consolidated assets of less than $10 billion by instructing the federal banking regulators to establish a single "Community Bank Leverage Ratio" of 9 percent.
Although the Company has and will continue to incur additional expense in complying with the corporate governance provisions of federal law and the resulting regulations, management does not expect that such compliance will have a material impact on the Company ’ s financial condition or results of operations. 9 Index Federal Savings Institution Regulation Business Activities .
Although the Company has and will continue to incur additional expense in complying with the corporate governance provisions of federal law and the resulting regulations, management does not expect that such compliance will have a material impact on the Company ’ s financial condition or results of operations. Federal Savings Institution Regulation Business Activities .
These laws and regulations mandate certain disclosure requirements and regulate the manner in which financial institutions must deal with customers when taking deposits from, making loans to, or engaging in other types of transactions with, such customers. The federal Consumer Financial Protection Bureau (“CFPB”) has adopted rules related to mortgage loan origination and mortgage loan servicing.
These laws and regulations mandate certain disclosure requirements and regulate the manner in which financial institutions must deal with customers when taking deposits from, making loans to, or engaging in other types of transactions with, such customers. 13 Index The federal Consumer Financial Protection Bureau (“CFPB”) has adopted rules related to mortgage loan origination and mortgage loan servicing.
We aim to accomplish this through a multitude of training and development programs, which include opportunities to engage in interdepartmental experiential learning, voluntary training seminars, ongoing training through our Cornerstone platform, tuition reimbursement program, BSA-AML certificate program with SUNY Schenectady County Community College and certification reimbursement for certain levels of employment.
We aim to accomplish this through a multitude of training and development programs, which include opportunities to engage in interdepartmental experiential learning, voluntary training seminars, ongoing training through our Cornerstone platform (a learning management system), tuition reimbursement program, BSA-AML certificate program with SUNY Schenectady County Community College and certification reimbursement for certain levels of employment.
To be consistent with safety and soundness, incentive compensation arrangements at a banking organization should comply with the following principles: 14 Index • Provide employees incentives that appropriately balance risk and reward; • Be compatible with effective controls and risk management; and • Be supported by strong corporate governance, including active and effective oversight by the organization’s board of directors.
To be consistent with safety and soundness, incentive compensation arrangements at a banking organization should comply with the following principles: • Provide employees incentives that appropriately balance risk and reward; • Be compatible with effective controls and risk management; and • Be supported by strong corporate governance, including active and effective oversight by the organization’s board of directors.
Compliance with regulatory standards regarding capital distributions could also limit the amount of dividends that TrustCo may pay to its shareholders. See Note 14 to the consolidated financial statements contained in TrustCo ’ s Annual Report to Shareholders for the year ended December 31, 2022 for information concerning the Bank ’ s regulatory capital requirements.
Compliance with regulatory standards regarding capital distributions could also limit the amount of dividends that TrustCo may pay to its shareholders. See Note 14 to the consolidated financial statements contained in TrustCo ’ s Annual Report to Shareholders for the year ended December 31, 2023 for information concerning the Bank ’ s regulatory capital requirements.
Disclosure Pursuant to Subpart 1400 of Regulation S-K The financial disclosures related to the Company as required under Subpart 1400 of Regulation S-K are incorporated herein by reference from TrustCo ’ s Annual Report to Shareholders for the year ended December 31, 2022 (the “Annual Report to Shareholders”), which is attached as Exhibit 13 hereto and incorporated herein by reference.
Disclosure Pursuant to Subpart 1400 of Regulation S-K The financial disclosures related to the Company as required under Subpart 1400 of Regulation S-K are incorporated herein by reference from TrustCo ’ s Annual Report to Shareholders for the year ended December 31, 2023 (the “Annual Report to Shareholders”), which is attached as Exhibit 13 hereto and incorporated herein by reference.
See the cross-references below to locate such disclosures in the Annual Report to Shareholders. Disclosure Page Number in Annual Report to Shareholders I. Distribution of assets, liabilities, and shareholders’ equity; interest rates and interest differential A. Average balance sheets 16 B. Interest income/expense and resulting yield or rate on average interest-earning assets and interest‑bearing liabilities 16 C.
See the cross-references below to locate such disclosures in the Annual Report to Shareholders. Disclosure Page Number in Annual Report to Shareholders I. Distribution of assets, liabilities, and shareholders’ equity; interest rates and interest differential A. Average balance sheets 17 B. Interest income/expense and resulting yield or rate on average interest-earning assets and interest‑bearing liabilities 17 C.
In addition, the Company is required to provide its customers with the ability to “opt-out” of having their personal information shared with unaffiliated third parties in certain circumstances. 13 Index State privacy laws currently in effect and laws taking effect in the near future impact how companies can process other categories of personal information.
In addition, the Company is required to provide its customers with the ability to “opt-out” of having their personal information shared with unaffiliated third parties in certain circumstances. State privacy laws currently in effect and laws taking effect in the near future impact how companies can process other categories of personal information.
Competition for loans has increased as interest rates have increased and housing inventory has tightened in many of the Bank’s market areas. Commercial banks, savings institutions, traditional mortgage brokers affiliated with local offices, and nationally franchised real estate brokers are all active and aggressive competitors.
Competition for loans has increased as interest rates have remained elevated and housing inventory has tightened in many of the Bank’s market areas. Commercial banks, savings institutions, traditional mortgage brokers affiliated with local offices, and nationally franchised real estate brokers are all active and aggressive competitors.
Average balances and rates 17 B. Uninsured and time deposits over $250,000 17 17 Index This information should not be construed to imply any conclusion on the part of the management of TrustCo that the results, causes, or trends indicated therein will continue in the future.
Average balances and rates 17 B. Uninsured and time deposits over $250,000 18 This information should not be construed to imply any conclusion on the part of the management of TrustCo that the results, causes, or trends indicated therein will continue in the future.
“ Critically undercapitalized ” institutions are subject to the appointment of a receiver or conservator. At December 31, 2022 and 2021, each of TrustCo and Trustco Bank met all capital adequacy requirements to which it was subject under the OCC and Federal Reserve Board regulations.
“ Critically undercapitalized ” institutions are subject to the appointment of a receiver or conservator. At December 31, 2023 and 2022, each of TrustCo and Trustco Bank met all capital adequacy requirements to which it was subject under the OCC and Federal Reserve Board regulations.
In particular, certain lending authority for federal savings banks, e.g. , commercial, non-residential real property loans and consumer loans, is limited to a specified percentage of the institution ’ s capital or assets. Insurance of Deposit Accounts .
In particular, certain lending authority for federal savings banks, e.g. , commercial, non-residential real property loans and consumer loans, is limited to a specified percentage of the institution ’ s capital or assets. 9 Index Insurance of Deposit Accounts .
The CRA also requires the OCC to assess an institution ’ s performance in meeting the credit needs of its identified communities as part of its examination of the institution, and to take such assessments into consideration in reviewing applications with respect to branches, mergers and other business combinations, including acquisitions by savings and loan holding companies.
The CRA also requires the OCC to assess an institution’s performance in meeting the credit needs of its identified communities as part of its examination of the institution, and to take such assessments into consideration in reviewing applications with respect to branches, mergers and other business combinations, including acquisitions by savings and loan holding companies.
As of September 30, 2020, the FDIC had announced that the ratio declined to 1.30% due largely to consequences of the COVID-19 pandemic and adopted a plan to restore the fund to the 1.35% ratio (the “Restoration Plan”) within eight years but did not change its assessment rate schedule.
In September 2020, the FDIC announced that the ratio declined to 1.30% due largely to consequences of the COVID-19 pandemic and adopted a plan to restore the fund to the 1.35% ratio (the “Restoration Plan”) within eight years but did not change its assessment rate schedule.
The OCC may disapprove a dividend if the institution would be undercapitalized following the distribution, the proposed capital distribution raises safety and soundness concerns, or the capital distribution would violate a prohibition contained in any statute, regulation, or agreement between the bank and a regulator or a condition imposed in a previously approved application or notice.
The OCC may not approve a dividend if the institution would be undercapitalized following the distribution, the proposed capital distribution raises safety and soundness concerns, or the capital distribution would violate a prohibition contained in any statute, regulation, or agreement between the bank and a regulator or a condition imposed in a previously approved application or notice.
As of December 31, 2022, the Company’s total assets on a consolidated basis did not exceed $10 billion. Office of Foreign Assets and Control Regulation . The U.S.
As of December 31, 2023, the Company’s total assets on a consolidated basis did not exceed $10 billion. Office of Foreign Assets and Control Regulation . The U.S.
As of December 31, 2022, the most recent notification from the OCC categorized the Bank as “well capitalized” under the regulatory framework for prompt corrective action. 8 Index Holding Company Activities The activities of savings and loan holding companies are governed, and limited, by the Home Owners ’ Loan Act and the Federal Reserve Board ’ s regulations.
As of December 31, 2023, the most recent notification from the OCC categorized the Bank as “well capitalized” under the regulatory framework for prompt corrective action. Holding Company Activities The activities of savings and loan holding companies are governed, and limited, by the Home Owners ’ Loan Act and the Federal Reserve Board ’ s regulations.
The Bank is currently, and expects to remain, in compliance with the qualified thrift lender test. 11 Index Transactions with Affiliates and Other Related Parties .
The Bank is currently, and expects to remain, in compliance with the qualified thrift lender test. Transactions with Affiliates and Other Related Parties .
In October 2022, the FDIC Board finalized the increase with an effective date of January, 1, 2023, applicable to the first quarterly assessment period of 2023 (i.e., January 1 through March 31, 2023). FDIC deposit insurance expense totaled $1.8 million in both 2022 and 2021, and 1.0 million , in 2020.
In October 2022, the FDIC Board finalized the increase with an effective date of January, 1, 2023, applicable to the first quarterly assessment period of 2023 (i.e., January 1 through March 31, 2023). FDIC deposit insurance expense totaled $2.9 million in 2023 and $1.8 million in both 2022 and 2021.
The aggregate market value of the assets under trust, custody, or management of the trust department of the Bank was approximately $918 million as of December 31, 2022. The daily operations of the Bank remain the responsibility of its officers, subject to the oversight of its Board of Directors and overall supervision by TrustCo.
The aggregate market value of the assets under trust, custody, or management of the trust department of the Bank was approximately $967 million as of December 31, 2023. The daily operations of the Bank remain the responsibility of its officers, subject to the oversight of its Board of Directors and overall supervision by TrustCo.
Institutions are evaluated based on (i) its record of helping to meet the credit needs of its assessment area through lending activities; (ii) its qualified investments; and (iii) the availability and effectiveness of the institution ’ s system for delivering retail banking services.
Institutions are evaluated based on (i) its record of helping to meet the credit needs of its assessment area through lending activities; (ii) its qualified investments; and (iii) the availability and effectiveness of the institution’s system for delivering retail banking services.
An institution that is found to be deficient in its performance in meeting its community ’ s credit needs may be subject to enforcement actions, including cease and desist orders and civil money penalties.
An institution that is found to be deficient in its performance in meeting its community’s credit needs may be subject to enforcement actions, including cease and desist orders and civil money penalties.
At December 31, 2022, the Bank had no FHLB advances an available line of credit with the FHLB which approximates the balance of securities and/or loans pledged against such borrowings. The Bank is also required to purchase and maintain stock in the FHLB of New York at or above levels specified in the FHLB of New York capital plan.
At December 31, 2023, the Bank had no FHLB advances and an available borrowing capacity with the FHLB which approximates the balance of securities and/or loans pledged against such borrowings. The Bank is also required to purchase and maintain stock in the FHLB of New York at or above levels specified in the FHLB of New York capital plan.
The Community Reinvestment Act ( “ CRA ” ) requires each savings institution, as well as commercial banks and certain other lenders, to identify the communities served by the institution ’ s offices and to identify the types of credit the institution is prepared to extend within those communities.
The Community Reinvestment Act (“CRA”) requires each savings institution, as well as commercial banks and certain other lenders, to identify the communities served by the institution’s offices and to identify the types of credit the institution is prepared to extend within those communities.
Rate/volume variances 17 II. Investments in debt securities A. Maturity schedule and weighted average yield 13 III. Loan Portfolio A. Maturity schedule 10 IV. Allowance for Credit Losses A. Credit ratios - Factors driving material changes in credit ratios or related components 19, 20, 21 B. Allocation of the allowance for credit losses 22 V. Deposits A.
Rate/volume variances 19 II. Investments in debt securities A. Maturity schedule and weighted average yield 14 III. Loan Portfolio A. Maturity schedule 11 IV. Allowance for Credit Losses A. Credit ratios - Factors driving material changes in credit ratios or related components 21,22,23 B. Allocation of the allowance for credit losses 24 V. Deposits A.
Under the Basel framework, these standards will generally be effective on January 1, 2023, with an aggregate output floor phasing in through January 1, 2028. Prompt Corrective Action .
Under the Basel framework, these standards generally became effective on January 1, 2023, with an aggregate output floor phasing in through January 1, 2028. 7 Index Prompt Corrective Action .
Key Legislation Certain Regulatory Developments Relating to the COVID-19 Pandemic Congress took significant action to address the disruptions caused by the COVID-19 pandemic, including by passing the Coronavirus Aid, Relief and Economic Security Act, a $2.2 trillion economic stimulus bill, and the Economic Aid Act.
Congress took significant action to address the disruptions caused by the COVID-19 pandemic, including by passing the Coronavirus Aid, Relief and Economic Security Act, a $2.2 trillion economic stimulus bill, and the Economic Aid Act.
The assessments paid by the Bank for the year ended December 31, 2022 totaled approximately 845 thousand. 10 Index Community Reinvestment Act .
The assessments paid by the Bank for the year ended December 31, 2023 totaled approximately 649 thousand. 10 Index Community Reinvestment Act .
At December 31, 2022, the Bank had a Tier 1 leverage ratio (Tier 1 capital to total average consolidated assets) of 10.12%, CET1 capital ratio (CET1 capital to risk-weighted assets) of a 18.43%, Tier 1 capital ratio (Tier 1 capital to risk-weighted assets) of 18.43%, and a total capital ratio (total capital to risk-weighted assets) of 19.68%.
At December 31, 2023, the Bank had a Tier 1 leverage ratio (Tier 1 capital to total average consolidated assets) of 10.43%, CET1 capital ratio (CET1 capital to risk-weighted assets) of a 18.28%, Tier 1 capital ratio (Tier 1 capital to risk-weighted assets) of 18.28%, and a total capital ratio (total capital to risk-weighted assets) of 19.53%.
This enforcement authority also includes, among other things, the ability to assess civil money penalties, issue cease-and-desist or removal orders and initiate injunctive actions. In general, these enforcement actions may be initiated for violations of laws and regulations and unsafe or unsound practices.
This enforcement authority also includes, among other things, the ability to assess civil money penalties, issue cease-and-desist or removal orders and initiate injunctive actions. In general, these enforcement actions may be initiated for violations of laws and regulations and unsafe or unsound practices. Public disclosure of final enforcement actions by the OCC and the Federal Reserve is required.
All employees are eligible to apply for open department and branch positions following their introductory period, and during 2022, 140 (roughly 17%) of our employees were promoted within the Bank.
All employees are eligible to apply for open department and branch positions following their introductory period, and during 2023, 116 (roughly 14%) of our employees were promoted within the Bank.
The Bank is subject to the Bank Secrecy Act (“BSA”) and other anti-money laundering provisions and requirements, including the USA PATRIOT Act of 2001 and regulations thereunder, which generally require that it implement a comprehensive customer identification program and an anti-money laundering program and procedures.
The Bank is subject to the Bank Secrecy Act (“BSA”) and other anti-money laundering provisions and requirements, which generally require that it implement a comprehensive customer identification program and an anti-money laundering program and procedures.
TrustCo had 7,593 shareholders of record as of December 31, 2022 and the closing price of the TrustCo common stock on December 30, 2022 (the last trading day of 2022) was $37.59. Subsidiaries Trustco Bank Trustco Bank is a federal savings bank engaged in providing general banking services to individuals and business.
TrustCo had 7,358 shareholders of record as of December 31, 2023 and the closing price of the TrustCo common stock on December 29, 2023 (the last trading day of 2023) was $31.05. Subsidiaries Trustco Bank Trustco Bank is a federal savings bank engaged in providing general banking services to individuals and business.
Also at December 31, 2022, the Company had a Tier 1 leverage ratio (Tier 1 capital to total average consolidated assets) of 10.39%, CET1 capital ratio (CET1 capital to risk-weighted assets) of 18.93%, a Tier 1 capital ratio (Tier 1 capital to risk-weighted assets) of 18.93% and a total capital ratio (total capital to risk-weighted assets) of 20.18%.
Also at December 31, 2023, the Company had a Tier 1 leverage ratio (Tier 1 capital to total average consolidated assets) of 10.78%, CET1 capital ratio (CET1 capital to risk-weighted assets) of 18.90%, a Tier 1 capital ratio (Tier 1 capital to risk-weighted assets) of 18.90% and a total capital ratio (total capital to risk-weighted assets) of 20.15%.
We strive to attract and retain the most talented employees by offering compensation and benefit structures that support their health, financial and emotional well-being, which includes competitive base salaries, annual bonuses, generous paid time off balances and Holiday Pay, an Employee Stock Purchase Club Program, life insurance, a 401(k) plan, the Trustco Bank Scholarship Program, a Tuition Reimbursement Program, a Student Loan Benefit Program, an Employee Assistance Program for mental and emotional support and various Company-organized wellness competitions.
We strive to attract and retain the most talented employees by offering compensation and benefit structures that support their health, financial and emotional well-being, which includes competitive base salaries, annual bonuses, generous paid time off balances and Holiday Pay, an Employee Stock Purchase Club Program, life insurance, a 401(k) plan, the Trustco Bank Scholarship Program, a Tuition Reimbursement Program, a Student Loan Benefit Program, an Employee Assistance Program for mental and emotional support and various Company-organized wellness competitions. 18 Index Employee Recruitment and Retention Hometown Pledge Program: This year we also started the Hometown Pledge Program, which allows newly hired Trustco Bank employees to direct a contribution to the community group of their choosing.
At year-end 2022, the Bank operated 158 automatic teller machines and 143 banking offices in Albany, Columbia, Dutchess, Greene, Montgomery, Orange, Putnam, Rensselaer, Rockland, Saratoga, Schenectady, Schoharie, Ulster, Warren, Washington, and Westchester counties of New York, Brevard, Charlotte, Flagler, Hillsborough, Indian River, Lake, Manatee, Martin, Orange, Osceola, Palm Beach, Polk, Sarasota, Seminole, and Volusia counties in Florida, Bennington County in Vermont, Berkshire County in Massachusetts and Bergen County in New Jersey. 3 Index The largest part of such business consists of accepting deposits and making loans and investments.
At year-end 2023, the Bank operated 156 automatic teller machines and 140 banking offices in Albany, Columbia, Dutchess, Greene, Montgomery, Orange, Putnam, Rensselaer, Rockland, Saratoga, Schenectady, Schoharie, Ulster, Warren, Washington, and Westchester counties of New York, Brevard, Charlotte, Flagler, Hillsborough, Indian River, Lake, Manatee, Martin, Orange, Osceola, Palm Beach, Polk, Sarasota, Seminole, and Volusia counties in Florida, Bennington County in Vermont, Berkshire County in Massachusetts and Bergen County in New Jersey.
The Company cannot predict whether any such legislation will be enacted, and, if enacted, the effect that it, or any implementing regulations would have on its financial condition or results of operations.
Such legislation could change banking laws and the operating environment of the Company in substantial, but unpredictable ways. The Company cannot predict whether any such legislation will be enacted, and, if enacted, the effect that it, or any implementing regulations would have on its financial condition or results of operations.
Banking organizations must assign a 20% risk weight to general obligations of a public sector entity (for example, a state, local authority or other governmental subdivision below the sovereign level) that is organized under U.S. law and a 50% risk weight for a revenue obligation of such an entity. 7 Index In December 2017, the Basel Committee published standards that it described as the finalization of the Basel III post-crisis regulatory reforms.
Banking organizations must assign a 20% risk weight to general obligations of a public sector entity (for example, a state, local authority or other governmental subdivision below the sovereign level) that is organized under U.S. law and a 50% risk weight for a revenue obligation of such an entity.
The workforce is 42% ethnically diverse, being made up of 15.04% Hispanic or Latino employees, 11.37% Asian employees, 11% Black or African American employees, 3.79% of employees from two or more races, 0.98% American Indian or Alaska Native employees, and 0.24% Native Hawaiian or other Pacific Islander employees. Additionally, 8.68% of our workforce identifies as disabled.
The workforce is 41% ethnically diverse, being made up of 15% Hispanic or Latino employees, 12% Asian employees, 10% Black or African American employees, 2% of employees from two or more races, 0.86 % American Indian or Alaska Native employees, and 0.12% Native Hawaiian or other Pacific Islander employees. Additionally, 9.03% of our workforce identifies as disabled.
Talent Development We believe in investing for the future which includes the future of our workforce, and we actively encourage and support the growth of our employees throughout their educational and career development, ensuring employees are given opportunities to develop and refine their skills to be successful within the Bank’s competitive environment.
Additionally, we have an active recruitment incentive program which awards existing employees for referring new employees to the Bank, which in turn helps us diversify our workforce. 17 Index Talent Development We believe in investing for the future which includes the future of our workforce, and we actively encourage and support the growth of our employees throughout their educational and career development, ensuring employees are given opportunities to develop and refine their skills to be successful within the Bank’s competitive environment.
The Bank accounted for substantially all of TrustCo ’ s 2022 consolidated net income and average assets. The Bank ’ s other active subsidiaries, Trustco Insurance Agency, Inc. and ORE Property, Inc., did not engage in any significant business activities during 2022 and 2021.
The Bank ’ s other active subsidiaries, Trustco Insurance Agency, Inc. and ORE Property, Inc., did not engage in any significant business activities during 2023 and 2022.
This amendment since has been adopted on a permanent basis. Economic Growth, Regulatory Relief and Consumer Protection Act In May 2018, the Economic Growth, Regulatory Relief and Consumer Protection Act (the "Regulatory Relief Act"), was enacted to modify or remove certain financial reform rules and regulations.
Key Legislation Economic Growth, Regulatory Relief and Consumer Protection Act In May 2018, the Economic Growth, Regulatory Relief and Consumer Protection Act (the "Regulatory Relief Act"), was enacted to modify or remove certain financial reform rules and regulations.
A savings and loan holding company is prohibited from, directly or indirectly, acquiring more than 5% of the voting stock of another financial institution or savings and loan holding company without the prior written approval of the Federal Reserve Board.
Activities permissible for a financial holding company are those considered financial in nature (including securities and insurance activities) or those incidental or complementary to financial activities. 8 Index A savings and loan holding company is prohibited from, directly or indirectly, acquiring more than 5% of the voting stock of another financial institution or savings and loan holding company without the prior written approval of the Federal Reserve Board.
Although TrustCo would qualify to take advantage of the community bank leverage ratio framework, it has decided it would not opt-in to the framework. 5 Index Dividends Most of TrustCo ’ s revenues consist of cash dividends paid to TrustCo by the Bank, payment of which is subject to various regulatory limitations, including continued compliance with minimum regulatory capital requirements, and the receipt of regulatory approval (or non-objection) from the Bank ’ s and the Company ’ s regulators.
Dividends Most of TrustCo ’ s revenues consist of cash dividends paid to TrustCo by the Bank, payment of which is subject to various regulatory limitations, including continued compliance with minimum regulatory capital requirements, and the receipt of regulatory approval (or non-objection) from the Bank ’ s and the Company ’ s regulators. 5 Index OCC regulations impose limitations upon all capital distributions by the Bank, including cash dividends.
We are also gathering data on an ongoing basis which focuses on the tenure of current staff. We’ve consistently improved our average tenure over the past four years, with an average tenure of about 5 years currently. Furthermore, the Human Resources Department conducts stay and exit interviews, which capture feedback from high turnover positions.
We’ve consistently maintained or improved our average tenure over the past four years, with an average tenure of about 5 years currently. Furthermore, the Human Resources Department conducts stay and exit interviews, which capture feedback from high turnover positions. These interviews are used to improve processes and procedures and inform future policy.
The income earned on these assets, net of expenses, is distributed in the form of dividends. Under current New York State tax law, 60% of the dividends received by the Bank from Trustco Realty Corp. are excluded from total taxable income for New York State income tax purposes.
Under current New York State tax law, 60% of the dividends received by the Bank from Trustco Realty Corp. are excluded from total taxable income for New York State income tax purposes. The Bank accounted for substantially all of TrustCo ’ s 2023 consolidated net income and average assets.
Detailed disclosure of our compensation practices are set forth in the annual Proxy Statement. The U.S. financial regulators, including the FRB, the OCC, and the SEC, jointly proposed regulations in 2011 and again in 2016 to implement the incentive compensation requirements of Section 956 of the Dodd-Frank Act. These regulations have not been finalized. Climate-Related Risk Management and Regulation .
The U.S. financial regulators, including the FRB, the OCC, and the SEC, jointly proposed regulations in 2011 and again in 2016 to implement the incentive compensation requirements of Section 956 of the Dodd-Frank Act. These regulations have not been finalized. Regulatory Developments Relating to the COVID-19 Pandemic.
Employee Feedback Through our training and mentoring programs, we actively encourage employee feedback. Following each training session, employees complete evaluations designed to provide constructive feedback on their trainer’s knowledge, the overall training structure, and the employee’s confidence in their ability to be successful in their new role.
Following each training session, employees complete evaluations designed to provide constructive feedback on their trainer’s knowledge, the overall training structure, and the employee’s confidence in their ability to be successful in their new role. We are also gathering data on an ongoing basis which focuses on the tenure of current staff.
The nature and effects of governmental monetary policy, supervision and regulation, future legislation, inflation and other economic conditions and many other factors which affect interest rates, investments, loans, deposits, and other aspects of TrustCo ’ s operations are extremely complex and could make historical operations, earnings, assets, and liabilities not indicative of what may occur in the future.
The nature and effects of governmental monetary policy, supervision and regulation, future legislation, inflation and other economic conditions and many other factors which affect interest rates, investments, loans, deposits, and other aspects of TrustCo ’ s operations are extremely complex and could make historical operations, earnings, assets, and liabilities not indicative of what may occur in the future. 19 Index Availability of Reports TrustCo ’ s annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and all amendments to those reports can be obtained free of charge from its website, www.trustcobank.com under the “ Investor Relations ” tab.
These two factors, given sufficiently severe impacts, could affect liquidity. Additionally, severe weather and other climate events could impact hiring and retention of employees, facilities management, retail services, and technology infrastructure, thus creating operational risk. Other Governmental Initiatives . From time to time, various legislative and regulatory initiatives are introduced in Congress, as well as by regulatory authorities.
Severe physical impacts from climate change, such as rising sea levels, could reduce the value of residential and/or commercial portfolio. These two factors, given sufficiently severe impacts, could affect liquidity. Additionally, severe weather and other climate events could impact hiring and retention of employees, facilities management, retail services, and technology infrastructure, thus creating operational risk. Other Governmental Initiatives .
The Bank provides a wide range of both personal and business banking services, including a full array of deposit products for both individuals and businesses. Trustco Bank also offers trust and investment services through its Financial Services Department. The Bank is supervised and regulated by the federal Office of the Comptroller of the Currency ( “ OCC ” ).
Lucie, and Sumter counties of Florida, where it has no branch locations. 3 Index The Bank provides a wide range of both personal and business banking services, including a full array of deposit products for both individuals and businesses. Trustco Bank also offers trust and investment services through its Financial Services Department.
Activities permitted to multiple savings and loan holding companies include certain real estate investment activities, and other activities permitted to bank holding companies under the Bank Holding Company Act. Activities permissible for a financial holding company are those considered financial in nature (including securities and insurance activities) or those incidental or complementary to financial activities.
Activities permitted to multiple savings and loan holding companies include certain real estate investment activities, and other activities permitted to bank holding companies under the Bank Holding Company Act.
Its deposits are insured by the Federal Deposit Insurance Corporation ( “ FDIC ” ) to the extent permitted by law. The Bank ’ s subsidiary, Trustco Realty Corp., is a real estate investment trust (or “ REIT ” ) that was formed to acquire, hold and manage real estate mortgage assets, including residential mortgage loans and mortgage backed securities.
The Bank ’ s subsidiary, Trustco Realty Corp., is a real estate investment trust (or “ REIT ” ) that was formed to acquire, hold and manage real estate mortgage assets, including residential mortgage loans and mortgage backed securities. The income earned on these assets, net of expenses, is distributed in the form of dividends.
In addition, federal banking agencies, through the Federal Financial Institutions Examination Council, have adopted guidelines to encourage financial institutions to address cybersecurity risks and identify, assess and mitigate these risks, both internally and at critical third party service providers.
These laws require substantial disclosures to consumers about personal information collection, use and sharing practices, while also allowing consumers the right to access, delete, correct, or move their data. 14 Index In addition, federal banking agencies, through the Federal Financial Institutions Examination Council, have adopted guidelines to encourage financial institutions to address cybersecurity risks and identify, assess and mitigate these risks, both internally and at critical third party service providers.
These initiatives may include proposals to expand or contract the powers of bank holding companies and depository institutions, proposals to change the financial institution regulatory environment, or proposals that affect public companies generally. Such legislation could change banking laws and the operating environment of the Company in substantial, but unpredictable ways.
From time to time, various legislative and regulatory initiatives are introduced in Congress, as well as by regulatory authorities. These initiatives may include proposals to expand or contract the powers of bank holding companies and depository institutions, proposals to change the financial institution regulatory environment, or proposals that affect public companies generally.
In addition, savings institutions are prohibited from lending to any affiliate that is engaged in activities that are not permissible for bank holding companies, and no savings institution may purchase the securities of any affiliate other than a subsidiary.
In addition, savings institutions are prohibited from lending to any affiliate that is engaged in activities that are not permissible for bank holding companies, and no savings institution may purchase the securities of any affiliate other than a subsidiary. 12 Index The definition of “ covered transactions ” as used in Section 23A includes credit exposure on derivatives transactions and securities lending and borrowing transactions, as well as the acceptance of affiliate-issued debt obligations as collateral for a loan or an extension of credit.
These interviews are used to improve processes and procedures and inform future policy. Diversity and Inclusion We recognize that everyone deserves respect and equal treatment, regardless of race, color, religion, sex (including gender identity, sexual orientation, and pregnancy), national origin, age (40 or older), disability or genetic information.
Diversity and Inclusion We recognize that everyone deserves respect and equal treatment, regardless of race, color, religion, sex (including gender identity, sexual orientation, and pregnancy), national origin, age (40 or older), disability or genetic information. TrustCo is committed to creating an inclusive environment that promotes diversity, equity and inclusion through training, recruiting and recognition practices to support our employees.
As of December 31, 2022, the Bank owned $5.8 million in FHLB of New York stock, which was in compliance with its obligations. Mergers and Acquisitions . The Bank Holding Company Act of 1956, the Bank Merger Act, the Change in Bank Control Act and other federal and state statutes regulate acquisitions of interests in commercial banks.
As of December 31, 2023 and 2022, the Bank owned $6.2 million and $5.8 million, respectively, in FHLB of New York stock, which was in compliance with its obligations. 15 Index Mergers and Acquisitions .
Trustco Bank also lends in Essex and Fulton counties of New York, Essex, Hudson, Morris, and Passaic counties of New Jersey, Collier, Lee, Marion, Pasco, Pinellas, St. Johns, St. Lucie, and Sumter counties of Florida, where it has no branch locations.
The largest part of such business consists of accepting deposits and making loans and investments. Trustco Bank also lends in Essex and Fulton counties of New York, Essex, Hudson, Morris, and Passaic counties of New Jersey, Collier, Lee, Marion, Pasco, Pinellas, St. Johns, St.
Adverse climate factors could impact the ability of loan customers to timely repay their loans. Adverse climate impacts also could adversely impact the stock and bond markets which could adversely affect TrustCo’s non-interest income earning potential. Severe physical impacts from climate change, such as rising sea levels, could reduce the value of residential and/or commercial portfolio.
As a mortgage lender, Trustco Bank has identified credit, market, liquidity, and operational factors as climate-related risks. Adverse climate factors could impact the ability of loan customers to timely repay their loans. Adverse climate impacts also could adversely impact the stock and bond markets which could adversely affect TrustCo’s non-interest income earning potential.
It is designed to help managers gain more self-awareness, learn essential leadership skills, and build a collaborative peer network. The development program consists of 4 components: Assess, Learn, Coach, Apply. The goal is for managers to gain a greater understanding of themselves and the significant impact they have on the business.
During 2023, Trustco Bank continued its Leadership Program for our management level staff members. The Trustco Leadership Program is an experiential learning opportunity for high-performing employees. It is designed to help managers gain more self-awareness, learn essential leadership skills, and build a collaborative peer network. The development program consists of 4 components: Assess, Learn, Coach, Apply.
Participant’s also report feeling better about their employer as a good corporate citizen, which has positive impacts upon employee retention.
Through this program, we have made 483 donations to 122 charities. Participants report increased satisfaction with their decision to join Trustco Bank. Participant’s also report feeling better about their employer as a good corporate citizen, which has positive impacts upon employee retention.
Any such events could have a material adverse effect on our costs or results of operations. These same issues also could impact the value of mortgage collateral and the security for residential and commercial loans. As a mortgage lender, Trustco Bank has identified credit, market, liquidity, and operational factors as climate-related risks.
Furthermore, periods of extended inclement weather or associated flooding may inhibit construction activity adversely affecting the use of some of our lending products. Any such events could have a material adverse effect on our costs or results of operations. These same issues also could impact the value of mortgage collateral and the security for residential and commercial loans.
Headcount As of December 31, 2022, we had 818 employees (which collectively amount to 754 full-time equivalents), all based in the United States, with 557 employees (68%) at bank branches, 243 (30%) located in corporate offices and 18 (2%) in call centers. 15 Index Hiring & Promotion Practices At TrustCo and Trustco Bank we are continuously educating our hiring managers about recruitment and selection processes, and we strive to build our workforce from within when possible.
Headcount As of December 31, 2023, we had 808 employees (which collectively amount to 750 full-time equivalents), all based in the United States, with 550 employees (68%) at bank branches, 242 (30%) located in corporate offices and 16 (2%) in call centers.
TrustCo is committed to creating an inclusive environment that promotes diversity, equity and inclusion through training, recruiting and recognition practices to support our employees. Our Human Capital Strategic Plan focuses on identifying areas of opportunity to further diversify our workforce over time. As of December 2022, approximately 59% of our workforce identify as female and 41% identify as male.
Our Human Capital Strategic Plan focuses on identifying areas of opportunity to further diversify our workforce over time. As of December 2023, approximately 60% of our workforce identify as female and 40% identify as male.
Compliance with the new rules was required by May 1, 2022. Identity Theft Protection . The Fair Credit Reporting Act’s Red Flags Rule requires financial institutions with covered accounts (e.g., consumer bank accounts and loans) to develop, implement and administer an identity theft prevention program.
Companies must provide disclosures about cybersecurity risk management and governance beginning with their Form 10-K for fiscal years ending on or after December 15, 2023. Identity Theft Protection . The Fair Credit Reporting Act’s Red Flags Rule requires financial institutions with covered accounts (e.g., consumer bank accounts and loans) to develop, implement and administer an identity theft prevention program.
Climate change may be associated with rising sea levels as well as extreme weather conditions such as more intense hurricanes, thunderstorms, tornadoes, drought and snow or ice storms. Extreme weather conditions may increase our costs or cause damage to our facilities, and any damage resulting from extreme weather may not be fully insured.
This amendment since has been adopted on a permanent basis. 16 Index Climate-Related Risk Management and Regulation . Climate change may be associated with rising sea levels as well as extreme weather conditions such as more intense hurricanes, thunderstorms, tornadoes, drought and snow or ice storms.
Currently, we have 42 (5.1%) employees that hold professional certificates and/or licenses. Additionally, our employees participated in over 20,000 hours of training, which included a recently expanded Leadership Program. During 2022, Trustco Bank continued its Leadership Program for our management level staff members. The Trustco Leadership Program is an experiential learning opportunity for high-performing employees.
Members of the Board of Directors receive regular training on an array of timely and relevant regulatory and governance topics. Currently, we have 40 (5.0%) employees who hold professional certificates and/or licenses. Additionally, our employees participated in over 25,000 hours of training, which included a recently expanded Leadership Program.
The Company competes for loans principally through the interest rates and loan fees it charges and the efficiency and quality of services it provides to borrowers. 4 Index Supervision and Regulation Banking is a highly regulated industry, with numerous federal and state laws and regulations governing the organization and operation of banks and their affiliates.
The Company’s community commitment and involvement in its primary market areas, as well as its commitment to quality and personalized financial services, are factors that contribute to the Company’s competitiveness. 4 Index Supervision and Regulation Banking is a highly regulated industry, with numerous federal and state laws and regulations governing the organization and operation of banks and their affiliates.
An unsatisfactory CRA rating may be the basis for denying such an application and community groups have successfully protested applications on CRA grounds.
An unsatisfactory CRA rating may be the basis for denying such an application and community groups have successfully protested applications on CRA grounds. In connection with its assessment of CRA performance, the OCC assigns CRA ratings of “outstanding,” “satisfactory,” “needs to improve” or “substantial noncompliance.” The Bank was rated “satisfactory” in its last CRA examination.
Many of our facilities are located near coastal areas or waterways where rising sea levels or flooding could disrupt our operations or adversely impact our facilities. Furthermore, periods of extended inclement weather or associated flooding may inhibit construction activity adversely affecting the use of some of our lending products.
Extreme weather conditions may increase our costs or cause damage to our facilities, and any damage resulting from extreme weather may not be fully insured. Many of our facilities are located near coastal areas or waterways where rising sea levels or flooding could disrupt our operations or adversely impact our facilities.
Removed
OCC regulations impose limitations upon all capital distributions by the Bank, including cash dividends.
Added
The Bank is supervised and regulated by the federal Office of the Comptroller of the Currency ( “ OCC ” ). Its deposits are insured by the Federal Deposit Insurance Corporation ( “ FDIC ” ) to the extent permitted by law.
Removed
In connection with its assessment of CRA performance, the OCC assigns CRA ratings of “ outstanding, ” “ satisfactory, ” “ needs to improve ” or “ substantial noncompliance. ” The Bank was rated “ satisfactory ” in its last CRA examination.
Added
The Company competes for loans principally through the interest rates and loan fees it charges and the efficiency and quality of services it provides to borrowers. Furthermore, management believes that a community-based financial organization is better positioned to establish personalized financial relationships with both commercial customers and individual households.

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Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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Biggest changeWe also are subject to reinvestment risk associated with changes in interest rates. Changes in interest rates may affect the average life of loans and mortgage-related securities. Increases in interest rates may decrease loan demand and/or may make it more difficult for borrowers to repay adjustable rate loans.
Biggest changeOur net interest income could be adversely affected if the rates we pay on deposits and borrowings increase more rapidly than the rates we earn on loans. 20 Index We also are subject to reinvestment risk associated with changes in interest rates. Changes in interest rates may affect the average life of loans and mortgage-related securities.
Changes in tax laws may adversely affect us, and the Internal Revenue Service or a court may disagree with our tax positions, which may result in adverse effects on our business, financial condition, results of operations or cash flows.
Changes in tax laws may adversely affect us, and the Internal Revenue Service or a court may disagree with our tax positions, which may result in adverse effects on our business, financial condition, and results of operations or cash flows.
We cannot assure you that such failures or interruptions will not occur again in the future or, if they do occur, that they will be adequately addressed by us or the third parties on which we rely.
We cannot assure you that such incidents, failures or interruptions will not occur again in the future or, if they do occur, that they will be adequately addressed by us or the third parties on which we rely.
In some cases, we could be required to apply a new or revised accounting standard retroactively, which could affect beginning of period financial statement amounts. 25 Index Risks Related to Competition Strong competition within the Bank’s market areas could hurt profits and slow growth. The Bank faces intense competition both in making loans and attracting deposits.
In some cases, we could be required to apply a new or revised accounting standard retroactively, which could affect beginning of period financial statement amounts. Risks Related to Competition Strong competition within the Bank’s market areas could hurt profits and slow growth. The Bank faces intense competition both in making loans and attracting deposits.
The loss of these revenue streams and the potential loss of lower cost deposits as a source of funds could have a material adverse effect on our business, financial condition and results of operations. Risks Related to Cybersecurity, Third Parties, and Technology Our business could be adversely affected by third-party service providers, data breaches, and cyber-attacks.
The loss of these revenue streams and the potential loss of lower cost deposits as a source of funds could have a material adverse effect on our business, financial condition and results of operations. 30 Index Risks Related to Cybersecurity, Third Parties, and Technology Our business could be adversely affected by third-party service providers, data breaches, and cyber-attacks.
Any one or a combination of these events may have an adverse impact on borrowers ’ ability to repay their loans, which could result in increased delinquencies, non-performing assets, loan losses, and future loan loss provisions. 21 Index Additionally, we have a concentration of loans secured in New York and Florida.
Any one or a combination of these events may have an adverse impact on borrowers ’ ability to repay their loans, which could result in increased delinquencies, non-performing assets, loan losses, and future loan loss provisions. Additionally, we have a concentration of loans secured in New York and Florida.
Either of these results may adversely impact demand for our products and services or otherwise have a harmful effect on our business and, in turn, on our financial condition, results of operations and prospects. 20 Index Risks Related to Our Operations We are dependent upon the services of our management team.
Either of these results may adversely impact demand for our products and services or otherwise have a harmful effect on our business and, in turn, on our financial condition, results of operations and prospects. 22 Index Risks Related to Our Operations We are dependent upon the services of our management team.
Operational risk exposures could adversely impact our results of operations, liquidity and financial condition, as well as cause reputational harm. Unauthorized disclosure of sensitive or confidential client or customer information, whether through a breach of our computer systems or otherwise, could severely harm our business.
Operational risk exposures could adversely impact our results of operations, liquidity and financial condition, as well as cause reputational harm. 31 Index Unauthorized disclosure of sensitive or confidential client or customer information, whether through a breach of our computer systems or otherwise, could severely harm our business.
We employ many preventive and detective controls to protect our assets and provide recurring information security training to all employees.
We employ preventive and detective controls to protect our assets and provide recurring information security training to all employees.
Our ability to engage in routine funding transactions could be adversely affected by the actions and commercial soundness of other financial institutions. Financial services institutions are interrelated as a result of trading, clearing, counterparty, or other relationships.
The soundness of other financial institutions could adversely affect us. Our ability to engage in routine funding transactions could be adversely affected by the actions and commercial soundness of other financial institutions. Financial services institutions are interrelated as a result of trading, clearing, counterparty, or other relationships.
The Dodd-Frank Act significantly affected the lending, deposit, investment, trading, and operating activities of financial institutions and their holding companies and will continue to do so. Any change in banking regulations and oversight, and the regulation of other agencies, such as the CFPB and the U.S.
The Dodd-Frank Act significantly affected the lending, deposit, investment, trading, and operating activities of financial institutions and their holding companies and will continue to do so. Changes in banking regulations and oversight, and the regulation of other agencies, such as the CFPB and the U.S.
Furthermore, a prolonged period of inflation could cause wages and other costs to the Company to increase, which could adversely affect our results of operations and financial condition We are exposed to credit risk in our lending activities. There are inherent risks associated with our lending and trading activities.
Furthermore, a prolonged period of inflation has caused and may continue to cause wages and other costs to the Company to increase, which could adversely affect our results of operations and financial condition We are exposed to credit risk in our lending activities. There are inherent risks associated with our lending and trading activities.
These regulatory authorities have extensive discretion in connection with their supervisory and enforcement activities, including the ability to impose restrictions on a bank ’ s operations, reclassify assets, determine the adequacy of a bank ’ s loss allowances, and determine the level of deposit insurance premiums assessed.
These regulatory authorities have extensive discretion in connection with their supervisory and enforcement activities, including the ability to impose restrictions on a bank’s operations, reclassify assets, determine the adequacy of a bank’s loss allowances, and determine the level of deposit insurance premiums assessed.
Although to date we have not experienced any material losses or other material consequences to date relating to technology failure, cyberattacks or other information or security breaches, whether directed at us or at third parties, there can be no assurance that our controls and procedures in place to monitor and mitigate the risks of cyber threats, including the remediation of critical information security and software vulnerabilities, will be sufficient and/or timely as to prevent material losses or consequences in the future.
Although to date we have not experienced any material losses or other material consequences to date relating to technology failure, cyberattacks or other information or security breaches, whether directed at us or at third parties, there can be no assurance that our controls and procedures in place to monitor and mitigate the risks of cyber threats, including the remediation of critical information security and software vulnerabilities, will be sufficient and/or timely as to prevent material losses or consequences in the future, particularly in light of the increased sophistication and evolving nature of cyber criminals’ activity.
Our efforts to take these risks into account in making lending and other decisions, including increasing our business with climate-friendly companies, may not be effective in protecting us from the negative impact of new laws and regulations or changes in consumer or business behavior. Item 1B Unresolved Staff Comments None.
Our efforts to take these risks into account in making lending and other decisions, including increasing our business with climate-friendly companies, may not be effective in protecting us from the negative impact of new laws and regulations or changes in consumer or business behavior.
On March 9, 2022, we announced that our Board authorized a new stock repurchase plan to acquire up to 200,000 shares of the Company’s outstanding common stock.
On March 17, 2023, we announced that our Board authorized a new stock repurchase plan to acquire up to 200,000 shares of the Company’s outstanding common stock.
New or revised rules may increase our regulatory compliance burden and costs and restrict the financial products and services we offer to our customers. 23 Index Further, there may be additional laws and regulations, or changes in policy, affecting lending and funding practices, regulatory capital limits, interest rate risk management, and liquidity standards and the legislative and regulatory responses to the COVID-19 pandemic have resulted, and future responses may result in significant changes.
New or revised rules may increase our regulatory compliance burden and costs and restrict the financial products and services we offer to our customers. Further, there may be additional laws and regulations, or changes in policy, affecting lending and funding practices, regulatory capital limits, interest rate risk management, and liquidity standards, and future responses may result in significant changes.
Sudden changes in monetary policy, for example, in response to high inflation, could lead to financial market volatility, increases in market interest rates and a continued flattening or inversion of the yield curve.
Sudden changes in monetary policy, for example, in response to high inflation, have led and may in the future lead to financial market volatility, increases in market interest rates and a continued flattening or inversion of the yield curve.
At December 31, 2022, Trustco Realty met all seven quarterly asset tests.
At December 31, 2023, Trustco Realty met all seven quarterly asset tests.
The USA PATRIOT and Bank Secrecy Acts require financial institutions to develop programs to prevent financial institutions from being used for money laundering and terrorist activities. If such activities are detected, financial institutions are obligated to file suspicious activity reports with the U.S. Treasury’s Office of Financial Crimes Enforcement Network.
The Bank Secrecy Act and other applicable requirements require financial institutions to develop programs to prevent financial institutions from being used for money laundering and terrorist activities. If such activities are detected, financial institutions are obligated to file suspicious activity reports with the U.S. Treasury’s Office of Financial Crimes Enforcement Network.
Provisions in our articles of incorporation and bylaws and New York law may discourage or prevent takeover attempts, and these provisions may have the effect of reducing the market price of our stock.
Risk Related to Ownership of Our Securities Provisions in our articles of incorporation and bylaws and New York law may discourage or prevent takeover attempts, and these provisions may have the effect of reducing the market price of our stock.
Consequently, the ability of our business customers to repay their loans may deteriorate, and in some cases this deterioration may occur quickly, which would adversely impact our results of operations and financial condition.
Consequently, the ability of our business customers to repay their loans has and may continue to deteriorate, and in some cases this deterioration has occurred and may in the future occur quickly, which can adversely impact our results of operations and financial condition.
In such cases, you may lose all or part of your investment. Risks Related to Our Lending Activities Changes in interest rates, including recent and possible future increases fueled by inflation, may significantly impact our financial condition and results of operations Like other financial institutions, we are subject to interest rate risk.
In such cases, you may lose all or part of your investment. Risks Related to Our Lending Activities Changes in interest rates may significantly impact our financial condition and results of operations Like other financial institutions, we are subject to interest rate risk.
Department of Housing and Urban Development, whether in the form of regulatory policy, new regulations or legislation, or additional deposit insurance premiums, could have a material impact on our operations.
Department of Housing and Urban Development, whether in the form of regulatory policy, new regulations or legislation, or additional deposit insurance premiums, have impacted our operations and may continue to have a material impact on our operations in the future.
Approximately 68.0% of our loan portfolio is comprised of loans secured by property located in our markets in and around New York, and approximately 32.0% is comprised of loans secured by property located in Florida. This makes us vulnerable to a downturn in the local economy and real estate markets.
Approximately 65.1% of our loan portfolio is comprised of loans secured by property located in our markets in and around New York, and approximately 34.9% is comprised of loans secured by property located in Florida. This makes us vulnerable to a downturn in the local economy and real estate markets.
It is possible, depending upon the financial condition of the Bank and other factors that the OCC or the Federal Reserve Board could assert that payment of dividends or other payments may result in an unsafe or unsound practice.
The availability of dividends from Trustco Bank is limited by various statutes and regulations. It is possible, depending upon the financial condition of the Bank and other factors that the OCC or the Federal Reserve Board could assert that payment of dividends or other payments may result in an unsafe or unsound practice.
All service offerings, including current offerings and those which may be provided in the future, may become more risky due to changes in economic, competitive and market conditions beyond our control.
All service offerings, including current offerings and those which may be provided in the future, may become more risky due to changes in economic, competitive and market conditions beyond our control. 23 Index We are exposed to climate risk.
A material adverse change in the ability of a significant portion of our borrowers to meet their obligation to us, due to changes in economic conditions, interest rates, natural disaster, acts of war, or other causes over which we have no control, could adversely impact the ability of borrowers to repay outstanding loans or the value of the collateral securing these loans, and could have a material adverse impact on our earnings and financial condition. 19 Index If our allowance for credit losses on loans (“ACLL”) is not sufficient to cover expected loan losses, our earnings could decrease.
A material adverse change in the ability of a significant portion of our borrowers to meet their obligation to us, due to changes in economic conditions, interest rates, natural disaster, acts of war, or other causes over which we have no control, could adversely impact the ability of borrowers to repay outstanding loans or the value of the collateral securing these loans, and could have a material adverse impact on our earnings and financial condition.
Unrealized gains and losses on securities available for sale are reported as a separate component of equity, net of tax. Decreases in the fair value of securities available for sale resulting from increases in interest rates could have an adverse effect on shareholders ’ equity. Inflationary pressures and rising prices may affect our results of operations and financial condition.
Unrealized gains and losses on securities available for sale are reported as a separate component of equity, net of tax. Decreases in the fair value of securities available for sale resulting from increases in interest rates could have an adverse effect on shareholders ’ equity.
These risks also arise from the same types of threats to businesses with which we deal. 27 Index Potential adverse consequences of attacks on our computer systems or other threats include damage to our reputation, loss of customer business, litigation, and increased regulatory scrutiny, which might also result in financial loss and require additional efforts and expense to attempt to prevent such adverse consequences in the future.
Potential adverse consequences of attacks on our computer systems or other threats include damage to our reputation, loss of customer business, litigation, and increased regulatory scrutiny, which might also result in financial loss and require additional efforts and expense to attempt to prevent such adverse consequences in the future.
Initial timetables for the introduction and development of new lines of business and/or new products or services may not be achieved and price and profitability targets may not prove feasible.
In developing and marketing new lines of business and/or new products and services, we may invest significant time and resources. Initial timetables for the introduction and development of new lines of business and/or new products or services may not be achieved and price and profitability targets may not prove feasible.
If Trustco Realty fails to meet any of the required provisions and, therefore, does not qualify to be a REIT, our effective tax rate would increase. Changes in accounting standards could impact reported earnings.
For 2023, Trustco Realty had met the two annual income tests and the distribution test. 29 Index If Trustco Realty fails to meet any of the required provisions and, therefore, does not qualify to be a REIT, our effective tax rate would increase. Changes in accounting standards could impact reported earnings.
Additionally, t he conflict with Russia and Ukraine has lead, and could continue to lead, to significant market and other disruptions, including significant volatility in commodity prices and supply of energy resources, instability in financial markets, supply chain interruptions, political and social instability, changes in consumer or purchaser preferences as well as increase in cyberattacks and espionage.
Additionally, ongoing military conflicts (such as the conflicts in Ukraine and in Israel and its surrounding areas) has lead, and could continue to lead, to significant market and other disruptions, including significant volatility in commodity prices and supply of energy resources, instability in financial markets, supply chain interruptions, political and social instability, changes in consumer or purchaser preferences as well as increase in cyberattacks and espionage.
If information security is breached, information can be lost or misappropriated, resulting in financial loss or costs to us. Any security breach involving confidential customer information, whether by us or by our vendors, could severely damage our reputation, expose us to the risks of litigation and liability or disrupt our operations and have a material adverse effect on our business.
Any security breach involving confidential customer information, whether by us or by our vendors, could severely damage our reputation, expose us to the risks of litigation and regulatory liability or disrupt our operations and have a material adverse effect on our business operations.
In addition, a REIT must distribute at least 90% of its taxable income for the taxable year, excluding any net capital gains, to maintain its non-taxable status for federal income tax purposes. For 2022, Trustco Realty had met the two annual income tests and the distribution test.
In addition, a REIT must distribute at least 90% of its taxable income for the taxable year, excluding any net capital gains, to maintain its non-taxable status for federal income tax purposes.
One such change is a 1% excise tax on stock repurchases, which will increase the cost of stock repurchases and may impact our future decisions on how to return value to stockholders in the most efficient manner. 28 Index We are exposed to climate risk.
One such change is a 1% excise tax on stock repurchases, which will increase the cost of stock repurchases and may impact our future decisions on how to return value to stockholders in the most efficient manner. Item 1B Unresolved Staff Comments None.
We are also at risk for the impact of natural disasters, terrorism, and international hostilities on our systems or for the effects of outages or other failures involving power or communications systems operated by others.
We are also at risk for the impact of natural disasters, terrorism, and international hostilities on our systems or for the effects of outages or other failures involving power or communications systems operated by others. These risks also arise from the same types of threats to businesses with which we deal.
The value of the properties securing loans in our loan portfolio may be adversely impacted as a result of the changing economics of home ownership, which could require an increase in our provision for loan losses, which would reduce our profitability and could materially adversely affect our business, financial condition and results of operations. 24 Index Our ability to pay dividends is subject to regulatory limitations and other limitations that may affect our ability to pay dividends to our stockholders or to repurchase our common stock.
The value of the properties securing loans in our loan portfolio may be adversely impacted as a result of the changing economics of home ownership, which could require an increase in our provision for loan losses, which would reduce our profitability and could materially adversely affect our business, financial condition and results of operations.
Any failure or interruption or breach in security of these systems could result in failures or interruptions in our customer relationships management, general ledger, deposit, servicing, and/or loan origination systems.
Any failure or interruption or breach in security of these systems could result in failures or interruptions in our customer relationships management, general ledger, deposit, servicing, and/or loan origination systems. Third (and fourth) party security incidents and supply-chain attacks have become increasingly common.
There are substantial risks and uncertainties associated with these efforts, particularly in instances where the markets are not fully developed. In developing and marketing new lines of business and/or new products and services, we may invest significant time and resources.
From time to time, we may develop and grow new lines of business or offer new products and services within our existing lines of business. There are substantial risks and uncertainties associated with these efforts, particularly in instances where the markets are not fully developed.
A significant portion of our loans have fixed interest rates (or, if adjustable, are initially fixed for periods of five to 10 years) and longer terms than our deposits and borrowings. Our net interest income could be adversely affected if the rates we pay on deposits and borrowings increase more rapidly than the rates we earn on loans.
A significant portion of our loans have fixed interest rates (or, if adjustable, are initially fixed for periods of five to 10 years) and longer terms than our deposits and borrowings.
There is no assurance that the IRS or a court will agree with the positions taken by us, in which case tax penalties and interest may be imposed that could adversely affect our business, financial condition, results of operations and cash flows.
There is no assurance that the IRS or a court will agree with the positions taken by us, in which case tax penalties and interest may be imposed that could adversely affect our business, financial condition, results of operations and cash flows. 28 Index Furthermore, on August 16, 2022, the U.S. government enacted the Inflation Reduction Act of 2022, which imposed a one percent excise tax on the value of corporate share repurchases (net of issuance).
Repurchases are made at management’s discretion at prices management considers to be attractive and in the best interests of both the Company and its stockholders, subject to the availability of stock, general market conditions, the trading price of the stock, alternative uses for capital, and the Company’s financial performance.
Repurchases are made at management’s discretion at prices management considers to be attractive and in the best interests of both the Company and its stockholders, subject to the availability of stock, general market conditions, the trading price of the stock, alternative uses for capital, and the Company’s financial performance. 32 Index The Inflation Reduction Act of 2022, which was signed into law on August 16, 2022, contains a number of changes to U.S. federal tax laws.
Decreases in interest rates often result in increased prepayments of loans and mortgage-related securities, as borrowers refinance their loans to reduce borrowing costs.
Increases in interest rates may decrease loan demand and/or may make it more difficult for borrowers to repay adjustable rate loans. Decreases in interest rates often result in increased prepayments of loans and mortgage-related securities, as borrowers refinance their loans to reduce borrowing costs.
If conditions or circumstances arise that expose flaws or gaps in the Company ’ s risk management program, or if its controls break down, the performance and value of its business could be adversely affected. Risks Related to Market Conditions A prolonged economic downturn, especially one affecting our geographic market area, will adversely affect our operations and financial results.
If conditions or circumstances arise that expose flaws or gaps in the Company ’ s risk management program, or if its controls break down, the performance and value of its business could be adversely affected. New lines of business or new products and services may subject us to additional risks.
As cyber and other data security threats continue to evolve, we may be required to expend significant additional resources to continue to modify and enhance our protective measures or to investigate and remediate any security vulnerabilities. 26 Index A failure in or breach of our operational or security systems or infrastructure, or those of third parties, could disrupt our businesses, and adversely impact our results of operations, liquidity and financial condition, as well as cause reputational harm.
A failure in or breach of our operational or security systems or infrastructure, or those of third parties, could disrupt our businesses, and adversely impact our results of operations, liquidity and financial condition, as well as cause reputational harm.
Higher inflation, or volatility and uncertainty related to inflation, could reduce demand for our products, adversely affect the creditworthiness of our borrowers or result in lower values for our investment securities and other interest-earning assets. The COVID-19 pandemic could continue to have an adverse effect on our business.
Higher inflation, or volatility and uncertainty related to inflation, could reduce demand for our products, adversely affect the creditworthiness of our borrowers or result in lower values for our investment securities and other interest-earning assets. 25 Index Any downgrade in the credit rating of the U.S. government or default by the U.S. government as a result of political conflicts over legislation to raise the U.S. government’s debt limit may have a material adverse effect on us.
Many of these transactions expose us to credit risk in the event of default of our counterparty or client.
Many of these transactions expose us to credit risk in the event of default of our counterparty or client. Any such losses could be material and could materially and adversely affect our business, financial condition and results of operations.
New laws and regulations may significantly affect the markets in which we do business, the markets for and value of our loans and investments, the products we offer, the fees we can charge and our ongoing operations, costs, and profitability. Non-compliance with the USA PATRIOT Act, Bank Secrecy Act, or other laws and regulations could result in fines or sanctions.
New laws and regulations may significantly affect the markets in which we do business, the markets for and value of our loans and investments, the products we offer, the fees we can charge and our ongoing operations, costs, and profitability. 27 Index Changes in cybersecurity or privacy regulations may increase our compliance costs, limit our ability to gain insight from data and lead to increased scrutiny.
Our risk and exposure to these matters remains heightened because of, among other things, the evolving nature of these threats and sophisticated methods used by cyber criminals, our plans to continue to implement Internet and mobile banking to meet customer demand, and the current economic and political environment.
Our risk and exposure to these cybersecurity incidents remains heightened because of, among other things, our implementation of Internet and mobile banking to meet customer demand, our expanded internal usage of web-based products and applications, the current economic and political environment, and our regulatory obligations and the regulatory scrutiny within our industry.
In any event, if market interest rates should move contrary to our position, earnings may be negatively affected. In March 2022, the Federal Open Market Committee (“FOMC”) increased the target range for the federal funds rate seven times in 2022 by a total of 425 basis points, to a range of 4.25% to 4.50% as of end of 2022.
The Federal Open Market Committee (“FOMC”) increased the target range for the federal funds rate seven times in 2022 and four times in 2023 by a total of 525 basis points, to a range of 5.25% to 5.50% as of end of 2023. All of these increases were expressly made in response to inflationary pressures.
TrustCo is a separate legal entity from its subsidiary Trustco Bank, and does not have significant operations of its own. The availability of dividends from Trustco Bank is limited by various statutes and regulations.
Our ability to pay dividends is subject to regulatory limitations and other limitations that may affect our ability to pay dividends to our stockholders or to repurchase our common stock. TrustCo is a separate legal entity from its subsidiary Trustco Bank, and does not have significant operations of its own.
Any such losses could be material and could materially and adversely affect our business, financial condition and results of operations. 22 Index The trust wealth management fees we receive may decrease as a result of poor investment performance, in either relative or absolute terms, which could decrease our revenues and net earnings.
A federal government shutdown could also result in reduced income for government employees or employees of companies that engage in business with the federal government, which could result in greater loan delinquencies, increased in our non-performing, criticized, and classified assets, and a decline in demand for our products and services. 26 Index The trust wealth management fees we receive may decrease as a result of poor investment performance, in either relative or absolute terms, which could decrease our revenues and net earnings.
Removed
At its meeting on February 1, 2023, the FOMC increased the target range for the federal funds by an additional 25 basis points, to a range of 4.50% to 4.75%. All of these increases were expressly made in response to inflationary pressures, which are currently expected to continue.
Added
In any event, if market interest rates should move contrary to our position, earnings may be negatively affected.
Removed
In its October 2022 “Beige Book”, the FRB noted that national economic activity had expanded at a modest pace on net since the previous report, while conditions varied across industries and districts.
Added
In its September and October 2023 “Beige Books”, the FRB noted that overall economic growth was modest during July and August and that there has been little to no change in overall economic activity since then. Regional banks continued to report ongoing declines in loan demand, tighter credit conditions, and narrowing loan spreads.
Removed
Rising mortgage rates and elevated housing prices further weakened single-family starts, while commercial real estate slowed in both construction and sales amid supply shortages and elevated construction and borrowing costs, and there were scattered reports of declining property prices.
Added
Furthermore, while most banks reported higher deposit rates, delinquency rates edged up. In addition, inflationary pressures moderated somewhat but remained widespread while conditions in the broad finance sector weakened slightly during the last reporting period. There can be no assurances as to any future FOMC conduct.
Removed
More locally, the New York district, the district in which the Company’s primary operations are located, stated economic activity continued to contract at a modest pace and that conditions in the broad finance sector deteriorated, and regional banks reported widening loan spreads and weakening loan demand. 18 Index There can be no assurances as to any future FOMC conduct.
Added
Ongoing inflationary pressures and continued elevated prices may affect our results of operations and financial condition. Inflation rose sharply at the end of 2021 and has remained at an elevated level through the date of this filing.
Removed
Inflation rose sharply at the end of 2021 and has continued rising in 2022 at levels not seen for over 40 years. Inflationary pressures are currently expected to remain elevated throughout 2022.
Added
Our commercial loan portfolio is increasing and the inherently higher risk of loss may lead to additional provisions for credit losses or charge-offs, which would negatively impact earnings and capital.
Removed
In addition, global demand for products may exceed supply during the economic recovery from the COVID-19 pandemic, and such shortages may cause inflation, adversely impact consumer and business confidence, and adversely affect the economy as well as our financial condition and results.
Added
Commercial loans generally expose a lender to greater risk of non-payment and loss than one- to four-family residential mortgage loans because repayment of the loans often depends on the successful operation of the business and the income stream of the borrowers.
Removed
The COVID-19 pandemic has had a significant economic impact on the communities in which we operate, our borrowers and depositors, and the national economy generally.
Added
Such loans typically involve larger loan balances to single borrowers or groups of related borrowers compared to one- to four-family residential mortgage loans. Also, some of our commercial borrowers have more than one loan outstanding with us.
Removed
These effects have diminished in the past year, but future developments and uncertainties will be difficult to predict, such as the potential emergence of a new variant, the course of the pandemic in China and other major economies, the persistence of pandemic-related work and lifestyle changes, changes in consumer preferences associated with the emergence of the pandemic, and other market disruptions.
Added
Consequently, an adverse development with respect to one loan or one credit relationship can expose us to a significantly greater risk of loss compared to an adverse development with respect to a one- to four-family residential mortgage loan.
Removed
Any such developments could have a complex and negative effect on our business, including with respect to the prevailing economic environment, our lending and investment activities, and our business operations. The soundness of other financial institutions could adversely affect us.
Added
Commercial business loans expose us to additional risk since they typically are dependent on the borrower’s ability to make repayments from the cash flows of the business and are secured by non-real estate collateral that may depreciate over time.
Removed
Furthermore, on August 16, 2022, the U.S. government enacted the Inflation Reduction Act, which introduces a new 15% corporate minimum tax and includes an excise tax that imposes a 1% surcharge on stock repurchases commencing January 1, 2023, and which may impact our financial results beginning in 2023.
Added
Further, our commercial business loans may be secured by collateral other than real estate, such as inventory and accounts receivable, the value of which may be more difficult to appraise, control or collect and may be more susceptible to fluctuation in value at the time of default.
Removed
Other Risks New lines of business or new products and services may subject us to additional risks. From time to time, we may develop and grow new lines of business or offer new products and services within our existing lines of business.
Added
In addition, if we foreclose on these loans, our holding period for the collateral may be longer than for a single or multi-family residential property if there are fewer potential purchasers of the collateral. 21 Index If our allowance for credit losses on loans (“ACLL”) is not sufficient to cover expected loan losses, our earnings could decrease.
Removed
The Inflation Reduction Act of 2022, which was signed into law on August 16, 2022, contains a number of changes to U.S. federal tax laws.
Added
Increasing scrutiny and evolving expectations from customers, regulators, investors, and other stakeholders with respect to our environmental, social and governance practices may impose additional costs on us or expose us to new or additional risks. Companies are facing increasing scrutiny from customers, regulators, investors, and other stakeholders related to their environmental, social and governance (“ESG”) practices and disclosure.
Added
Investor advocacy groups, investment funds and influential investors are also increasingly focused on these practices, especially as they relate to the environment, health and safety, diversity, labor conditions and human rights. Increased ESG related compliance costs could result in increases to our overall operational costs.
Added
Failure to adapt to or comply with regulatory requirements or investor or stakeholder expectations and standards could negatively impact our reputation, ability to do business with certain partners, and our stock price.
Added
New government regulations could also result in new or more stringent forms of ESG oversight and expanding mandatory and voluntary reporting, diligence, and disclosure. 24 Index Risks Related to Market Conditions A prolonged economic downturn, especially one affecting our geographic market area, will adversely affect our operations and financial results.

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Item 2. Properties

Properties — owned and leased real estate

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Biggest changeAs of December 31, 2022, 24 of such properties are owned and 119 are leased from others on market terms. The lease terms for our banking offices are not individually material. Lease expirations range from 2 months to 21.8 years.
Biggest changeAs of December 31, 2023, 23 of such properties are owned and 117 are leased from others on market terms. The lease terms for our banking offices are not individually material. Lease expirations range from 5 months to 20.8 years.
Item 2. Properties TrustCo ’ s executive offices are located at 5 Sarnowski Drive, Glenville, New York, 12302, in a facility owned by the Company. The Company operates 143 banking offices located in New York, New Jersey, Vermont, Massachusetts and Florida.
Item 2. Properties TrustCo ’ s executive offices are located at 5 Sarnowski Drive, Glenville, New York, 12302, in a facility owned by the Company. The Company operates 140 banking offices located in New York, New Jersey, Vermont, Massachusetts and Florida.

Item 4. Mine Safety Disclosures

Mine Safety Disclosures — required of mining issuers

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Biggest changeMine Safety Disclosures Not applicable. 29 Index Information about our Executive Officers The following is a list of the names and ages as of March 1, 2023 of the executive officers of TrustCo and their business history for the past five years: Name, Age and Position With Trustco Principal Occupations Or Employment Since January 1, 2008 Year First Became Executive of TrustCo Robert J.
Biggest changeMine Safety Disclosures Not applicable. 34 Index Information about our Executive Officers The following is a list of the names and ages as of March 11, 2024 of the executive officers of TrustCo and their business history for the past five years: Name, Age and Position With Trustco Principal Occupations Or Employment Since January 1, 2008 Year First Became Executive of TrustCo Robert J.
Executive Officer and Secretary of TrustCo and Trustco Bank from 2017 to present. Attorney with McNamee, Lochner, Titus & William, P.C. from 1992 to 2015. Joined TrustCo and Trustco Bank in 2015. 2016 Kevin M. Curley Age 56, Executive Vice President Retail Banking Executive Vice President Retail Banking of TrustCo and Trustco Bank from December 2018 to present.
Executive Officer and Secretary of TrustCo and Trustco Bank from 2017 to present. Attorney with McNamee, Lochner, Titus & William, P.C. from 1992 to 2015. Joined TrustCo and Trustco Bank in 2015. 2016 Kevin M. Curley Age 57, Executive Vice President Retail Banking Executive Vice President Retail Banking of TrustCo and Trustco Bank from December 2018 to present.
Chairman of TrustCo and Trustco Bank from November 2008 to December 2010. Director of TrustCo and Trustco Bank since 2005. Joined Trustco Bank in 1995. 2001 Scot R. Salvador , Age 56, Executive Vice President Commercial Banking Executive Vice President of TrustCo and Trustco Bank since January 2004. Executive Officer of TrustCo and Trustco Bank since 2004.
Chairman of TrustCo and Trustco Bank from November 2008 to December 2010. Director of TrustCo and Trustco Bank since 2005. Joined Trustco Bank in 1995. 2001 Scot R. Salvador , Age 57, Executive Vice President Commercial Banking Executive Vice President of TrustCo and Trustco Bank since January 2004. Executive Officer of TrustCo and Trustco Bank since 2004.
Joined Trustco Bank in 1995. 2004 Robert M. Leonard , Age 60, Executive Vice President Corporate Services and Risk Executive Vice President of TrustCo and Trustco Bank from 2013 to present. Senior Vice President of TrustCo and Trustco Bank from 2010 to 2013. Secretary of TrustCo and Trustco Bank from 2003 to 2006 and 2009 to 2016.
Joined Trustco Bank in 1995. 2004 Robert M. Leonard , Age 61, Executive Vice President Corporate Services and Risk Executive Vice President of TrustCo and Trustco Bank from 2013 to present. Senior Vice President of TrustCo and Trustco Bank from 2010 to 2013. Secretary of TrustCo and Trustco Bank from 2003 to 2006 and 2009 to 2016.
Senior Vice President and Chief Financial Officer of TrustCo and Trustco Bank from 2014 to 2018. Executive Officer of TrustCo and Trustco Bank from 2014 to present. Joined TrustCo and Trustco Bank in 2002. 2014 Eric W. Schreck Age 56, Executive Vice President and Treasurer Executive Vice President and Florida Regional President of Trustco Bank from 2021 to present.
Senior Vice President and Chief Financial Officer of TrustCo and Trustco Bank from 2014 to 2018. Executive Officer of TrustCo and Trustco Bank from 2014 to present. Joined TrustCo and Trustco Bank in 2002. 2014 Eric W. Schreck Age 57, Executive Vice President and Treasurer Executive Vice President and Florida Regional President of Trustco Bank from 2021 to present.
Assistant Secretary of TrustCo and Trustco Bank from 2006 to 2009. Executive Officer of TrustCo and Trustco Bank from 2003 to present. Joined Trustco Bank in 1986. 2003 Michael M. Ozimek Age 48, Executive Vice President and Chief Financial Officer Executive Vice President and Chief Financial Officer, TrustCo and Trustco Bank from 2018 to present.
Assistant Secretary of TrustCo and Trustco Bank from 2006 to 2009. Executive Officer of TrustCo and Trustco Bank from 2003 to present. Joined Trustco Bank in 1986. 2003 Michael M. Ozimek Age 49, Executive Vice President and Chief Financial Officer Executive Vice President and Chief Financial Officer, TrustCo and Trustco Bank from 2018 to present.
Joined Trustco Bank in 1989. 2010 Michael Hall Age 58, General Counsel and Corporate Secretary General Counsel and Corporate Secretary of TrustCo and Trustco Bank from 2018 to present. Vice President and Counsel of TrustCo and Trustco Bank from 2015 to 2018. Assistant Secretary of TrustCo and Trustco Bank for 2016.
Joined Trustco Bank in 1989. 2010 Michael Hall Age 59, General Counsel and Corporate Secretary General Counsel and Corporate Secretary of TrustCo and Trustco Bank from 2018 to present. Vice President and Counsel of TrustCo and Trustco Bank from 2015 to 2018. Assistant Secretary of TrustCo and Trustco Bank for 2016.
Joined Trustco Bank in 1990. 2018 30 Index PART II
Joined Trustco Bank in 1990. 2018 35 Index PART II

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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Biggest changePeriod (a) Total Number of Shares Purchased (b) Average Price Paid Per Share (c) Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (d) Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs (1) October 1 to October 31, 2022 - $ - - 32,786 November 1 to November 30, 2022 - $ - - 32,786 December 1 to December 31, 2022 32,786 $ 38.17 32,786 - Total 32,786 $ 38.17 32,786 - (1) On March 9, 2022 the Company’s Board of Directors authorized another share repurchase program of up to 200,000 shares, or approximately 1% of its currently outstanding common stock.
Biggest changePeriod (a) Total Number of Shares Purchased (b) Average Price Paid Per Share (c) Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (d) Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs (1) October 1 to October 31, 2023 - $ - - 200,000 November 1 to November 30, 2023 - $ - - 200,000 December 1 to December 31, 2023 - $ - - 200,000 Total - $ - - 200,000 (1) On March 17, 2023 the Company’s Board of Directors authorized, and the Company announced, another share repurchase program of up to 200,000 shares, or approximately 1% of its currently outstanding common stock.
Business-Supervision and Regulation-Dividends.” The following details the purchase of shares of TrustCo ’ s common stock made by or on behalf of TrustCo in the fourth quarter of the year ended December 31, 2022. Recent Sales of Unregistered Securities. None.
Business-Supervision and Regulation-Dividends.” The following details the purchase of shares of TrustCo ’ s common stock made by or on behalf of TrustCo in the fourth quarter of the year ended December 31, 2023. Recent Sales of Unregistered Securities. None.
Issuer Purchases of Equity Securities The following table provides information about the Company’s purchases of shares of common stock during the three months ended December 31, 2022.
Issuer Purchases of Equity Securities The following table provides information about the Company’s purchases of shares of common stock during the three months ended December 31, 2023.
Item 5. Market for the Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities TrustCo ’ s common stock is traded on The Nasdaq Stock Market, LLC under the symbol “ TRST. ” TrustCo had approximately 7,566 shareholders of record as of February 23, 2023.
Item 5. Market for the Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities TrustCo ’ s common stock is traded on The Nasdaq Stock Market, LLC under the symbol “ TRST. ” TrustCo had approximately 7,279 shareholders of record as of February 29, 2024.
All 200,000 shares under the current authorization had been repurchased as of December 31, 2022. 31 Index Stock Performance Graph The TrustCo Annual Report to Shareholders for the year ended December 31, 2022, which is filed as Exhibit 13 hereto, contains a stock performance graph comparing the yearly percentage change in the Company’s cumulative total shareholder return on its common stock with the cumulative return of the Russell 2000 and S&P U.S.
There were no repurchases during the three months ended December 31, 2023. 36 Index Stock Performance Graph The TrustCo Annual Report to Shareholders for the year ended December 31, 2023, which is filed as Exhibit 13 hereto, contains a stock performance graph comparing the yearly percentage change in the Company’s cumulative total shareholder return on its common stock with the cumulative return of the Russell 2000 and S&P U.S.
Removed
During the three months ended December 31, 2022, the Company repurchased a total of 32,786 shares at an average price per share of $38.17, for a total of $1.2 million under its Board authorized share repurchase program.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

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Biggest changeItem 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations The information required by this this Item 7 is contained in TrustCo ’ s Annual Report to Shareholders for the year ended December 31, 2022, which is filed as Exhibit 13 hereto and incorporated herein by reference.
Biggest changeItem 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations The information required by this this Item 7 is contained in TrustCo ’ s Annual Report to Shareholders for the year ended December 31, 2023, which is filed as Exhibit 13 hereto and incorporated herein by reference.

Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

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Biggest changeItem 7A. Quantitative and Qualitative Disclosures about Market Risk The information required by this Item 7A is contained in TrustCo ’ s Annual Report to Shareholders for the year ended December 31, 2022, which is filed as Exhibit 13 hereto and incorporated herein by reference.
Biggest changeItem 7A. Quantitative and Qualitative Disclosures about Market Risk The information required by this Item 7A is contained in TrustCo ’ s Annual Report to Shareholders for the year ended December 31, 2023, which is filed as Exhibit 13 hereto and incorporated herein by reference.

Other TRST 10-K year-over-year comparisons