Mr. McCormick also noted "We continue to see some signs of economic improvement in the markets in which we operate, although high levels of unemployment and other persistent issues continue to constrain any significant growth. We believe our long-term focus on traditional lending criteria and conservative balance sheet management has enabled us to maintain a strong balance sheet with continued profitability. As a result, we have been able to focus on conducting business, which has put us in a position to take advantage of the significant upheaval that customers of other banks have experienced."TrustCo continued to report solid growth in loans and deposits on a year-over-year basis. For the quarter ended September 30, 2012, average loans were up $134.7 million or 5.5% compared to the same period in 2011, while average deposits increased $166.1 million or 4.5% over the same period. Compared to the second quarter of 2012, average deposits were down $27.0 million or 2.8% (annualized) and average loans were up $42.3 million or 6.7% (annualized). Mr. McCormick noted that, "The year-over-year growth of our loans and deposits reflects the long term strategic focus of the Bank, while the decline in average deposits relative to the second quarter reflects our near term tactical decision to intensify our focus on enhancing our mix of deposits and growing our core customer base. Our efforts in this regard resulted in certificate of deposit balances falling from 33.9% of deposits at June 30, 2012 to 29.4% at September 30, 2012. Because certificates are our most costly deposits, this decline contributed to our overall cost of deposits falling to 0.44% in the third quarter compared to 0.52% in the second quarter. Our branch franchise continues to be the key to our long term plans. We have made significant progress in expanding our loans and deposits through our branches, and expect that to continue as the new branches grow towards their capacity. We remain mindful that fully achieving our goals for our newer branches will take time and continued hard work. We believe our success in growing customer relationships provides the basic building blocks that will help drive profit growth over the coming years. As we have noted, however, we will not pursue balance sheet expansion that does not contribute to the long term health of the Company."