TrustCo’s Positive Momentum Yields 6.5% Net Income Increase; $17.3 Million for Third Quarter of 2026

Higher lending income and a wider interest margin accompanied a dividend increase, while expenses and nonperforming loans also rose.

Rhea-AI Summary

TrustCo Bank Corp NY (NASDAQ: TRST) reported third-quarter 2026 net income of $17.3 million, up 6.5% from a year earlier. Diluted earnings per share rose 18.6% to $1.02. Net interest income increased 9.1% to $47.0 million, while net interest margin widened to 2.95% from 2.79%.

Average loans grew 4.6%, and average deposits increased 4.2% year over year. TrustCo increased its quarterly dividend 5.3% to $0.40 per share and said it was on pace to complete cumulative repurchases of three million shares by year-end 2026. Nine-month net income reached $50.6 million versus $45.6 million a year earlier.

Quarterly noninterest expense rose to $28.019 million from $26.242 million. The credit-loss provision increased to $850 thousand from $250 thousand. Nonperforming loans rose to $21.1 million from $18.5 million, while equity to assets declined to 9.72% from 10.90%.

25 points · 0 major

PositiveiHow this balance works

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Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.

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0 major · 9 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Moderate pointThird-quarter net income rose 6.5% to $17.3 million; diluted earnings per share increased 18.6% to $1.02.
• Moderate pointThird-quarter net interest income increased 9.1% to $47.0 million year over year.
• Moderate pointThird-quarter net interest margin widened 16 basis points to 2.95% from 2.79% a year earlier.
• Moderate pointAverage deposits increased $229.6 million, or 4.2%, in the third quarter year over year.
• Moderate point. Forward-looking: it has not happened yet and may not happen.TrustCo expects cumulative repurchases to reach three million shares, or 15.8%, by year-end 2026.

20 minor points

• Minor pointThird-quarter earning-asset yield increased to 4.35% from 4.25% a year earlier.
• Minor pointThird-quarter interest-bearing liability cost decreased to 1.79% from 1.90% a year earlier.
• Minor pointAverage residential loans increased $177.3 million, or 4.0%, in the third quarter year over year.
• Minor pointAverage home equity credit lines increased $50.0 million, or 11.4%, in the third quarter year over year.
• Minor pointAverage commercial loans increased $13.5 million, or 4.3%, in the third quarter year over year.
• Minor pointQuarterly dividend increased 5.3% to $0.40 per share, or $1.60 annualized.
• Minor pointNine-month net income increased to $50.6 million from $45.6 million; diluted earnings rose to $2.91 from $2.41.
• Minor pointNine-month net interest income rose to $137.337 million from $125.238 million a year earlier.
• Minor pointNine-month net interest margin widened to 2.89% from 2.71% a year earlier.
• Minor pointThird-quarter noninterest income excluding equity-security gains rose to $4.762 million from $4.689 million year over year.
• Minor pointNine-month noninterest income excluding equity-security gains rose to $14.671 million from $14.515 million year over year.
• Minor pointEquity-security gains were $56 thousand for the quarter and $900 thousand year to date, versus none a year earlier.
• Minor pointThird-quarter return on average equity improved to 10.57% from 9.29% a year earlier.
• Minor pointThird-quarter return on average assets improved to 1.05% from 1.02% a year earlier.
• Minor pointThird-quarter GAAP efficiency ratio improved to 54.03% from 54.89% a year earlier.
• Minor pointNine-month return on average equity improved to 10.15% from 8.84% a year earlier.
• Minor pointNine-month return on average assets improved to 1.04% from 0.97% a year earlier.
• Minor pointNine-month GAAP efficiency ratio improved to 54.50% from 56.38% a year earlier.
• Minor pointBook value per share increased 2.4% to $38.20 year over year, but declined from $38.53 at June 30.
• Minor point. Forward-looking: it has not happened yet and may not happen.TrustCo expects asset repricing and lower funding costs to support continued net income and net interest income growth.

Negative

• Moderate pointThird-quarter noninterest expense increased to $28.019 million from $26.242 million a year earlier.
• Moderate pointThird-quarter credit-loss provision increased to $850 thousand from $250 thousand a year earlier.
• Moderate pointNonperforming loans rose to $21.1 million from $18.5 million at September 30, 2025.
• Moderate pointEquity to assets declined to 9.72% from 10.90% at September 30, 2025.
• Minor pointNine-month noninterest expense increased to $83.334 million from $78.794 million a year earlier.

4 minor points

• Minor pointNine-month credit-loss provision increased to $2.450 million from $1.200 million a year earlier.
• Minor pointNonperforming loans reached 0.39% of total loans, versus 0.36% at September 30, 2025.
• Minor pointNonperforming assets rose to $22.3 million from $19.7 million at September 30, 2025.
• Minor pointLoan-loss allowance coverage of nonperforming loans declined to 2.6 times from 2.8 times a year earlier.

Key Figures

Net income: $17.3 million, up 6.5% from $16.3 million Diluted EPS: $1.02, up 18.6% from $0.86 Net interest income: $47.0 million, up 9.1% from $43.1 million +5 more

Net income

$17.3 million, up 6.5% from $16.3 million

Third quarter 2026 vs. third quarter 2025

Diluted EPS

$1.02, up 18.6% from $0.86

Third quarter 2026 vs. third quarter 2025

Net interest income

$47.0 million, up 9.1% from $43.1 million

Third quarter 2026 vs. third quarter 2025

Net interest margin

2.95%, up 16 basis points from 2.79%

Third quarter 2026 vs. third quarter 2025

Average loans

Up $238.1 million, or 4.6%

Third quarter 2026 vs. the same period in 2025

Average deposits

Up $229.6 million, or 4.2%

Third quarter 2026 vs. the same period in 2025

Quarterly dividend

$0.40 per share, increased 5.3%

Declared during the third quarter of 2026

Shares repurchased

1.5 million shares, or 8.3% of outstanding common stock

Nine months ended September 30, 2026

Historical Context

1 past event · Latest: Jul 21

1 event

1. Jul 21

   Earnings report

   24h Move

   +0.4%

   Second-quarter net income, diluted EPS and net interest income increased year over year.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

net interest margin, diluted earnings per share, provision for credit losses, nonperforming loans

4 terms

net interest margin financial

"net interest margin expanded to 2.95% from 2.79%"

Net interest margin measures how much a bank earns from lending and investing compared with what it pays for funding, expressed as a percentage of its interest-earning assets. Think of it like a grocery store’s markup: it shows the gap between buying cost and selling price per dollar of goods — here, the cost is interest paid and the sale is interest received. Investors watch it because a higher margin usually means a bank is more profitable and better at managing interest rate and credit conditions.

diluted earnings per share financial

"net income of $17.3 million, or $1.02 diluted earnings per share"

Diluted earnings per share is a measure of a company's profit allocated to each share of stock, taking into account all possible shares that could be created through stock options, convertible bonds, or other securities. It shows the lowest possible earnings per share if all these potential shares were issued, helping investors understand the worst-case scenario for their ownership. This figure matters because it provides a more conservative view of a company's profitability per share.

provision for credit losses financial

"TrustCo recorded a provision for credit losses of $850 thousand"

Provision for credit losses is an amount set aside by a financial institution to cover potential future losses from borrowers who may not repay their loans. It acts like a safety net, helping the institution manage risks and stay financially healthy. For investors, it signals how cautious a lender is about potential loan defaults and can impact the company's profitability and financial stability.

nonperforming loans financial

"Nonperforming loans (NPLs) were $21.1 million"

Nonperforming loans are loans on which borrowers have stopped making the scheduled interest or principal payments for an extended period (commonly 90 days or more) or are otherwise in serious danger of default. Think of them as IOUs that aren’t being repaid: they tie up a lender’s money, reduce future interest income, and force the lender to hold extra reserves or take losses. For investors, a rising share of nonperforming loans signals weakening credit quality, higher potential losses, and greater risk to a bank’s profitability and capital.

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Executive Snapshot:

Financial results:

• Key metrics for the third quarter of 2026 compared to the third quarter of 2025:
  • Diluted earnings per share of $1.02 increased 18.6% compared to $0.86
  • Net interest income of $47.0 million, up 9.1% from $43.1 million
  • Net interest margin of 2.95%, up 16 basis points from 2.79%
  • Net income of $17.3 million increased 6.5% compared to $16.3 million
  • Average loans increased $238.1 million, or 4.6%
  • Average deposits increased $229.6 million, or 4.2%
    
• Capital allocation and Stock Repurchase Program:
  
  • Increased dividend 5.3% to $0.40 per share, or $1.60 per share on an annualized basis
  • Purchased 13.2% of TrustCo outstanding common stock under the 2026 and 2025 Stock Repurchase Programs through the acquisition of over 1.5 million shares in the first nine months of 2026, following the purchase of 1 million shares in 2025, reinforcing a disciplined long-term capital allocation strategy
  • On pace to complete the repurchase of a total of three million shares, or 15.8%, of TrustCo common stock by the end of 2026
    
    

GLENVILLE, N.Y., Oct. 21, 2026 (GLOBE NEWSWIRE) --

TrustCo Bank Corp NY (TrustCo, NASDAQ: TRST) today announced financial results for the third quarter of 2026 highlighted by a continued increase in net interest income and sustained loan and deposit growth across core lending and deposit categories.   For the three months ended September 30, 2026, net interest income increased 9.1% year over year to $47.0 million. This was driven by the ongoing asset repricing across our loan portfolio at higher yields and effective execution of deposit growth and pricing strategies. For the three months ended September 30, 2026, net interest margin expanded to 2.95% from 2.79% in the prior year period. This resulted in third quarter 2026 net income of $17.3 million, or $1.02 diluted earnings per share, compared to net income of $16.3 million, or $0.86 diluted earnings per share, for the third quarter 2025; and contributed to net income of $50.6 million, or $2.91 diluted earnings per share, for the nine months ended September 30, 2026, compared to net income of $45.6 million, or $2.41 diluted earnings per share, for the nine months ended September 30, 2025.

Overview

Chairman, President, and CEO, Robert J. McCormick, said “Another quarter of solid financial performance is the product of TrustCo’s continued execution of tried and true banking principles that, quarter after quarter, continue to build positive momentum. Steady growth in both loans and deposits, coupled with favorable repricing of the Bank’s nearly $5.5 billion loan portfolio, have boosted net interest income to $47 million for the quarter, increased margin by 16 basis points, and driven return on average equity up 1.28% year over year, a 14% increase. Our management team has built a resilient balance sheet that can perform well in the current dynamic interest-rate environment, which efforts are supported by the entire organization’s focus on our relationship-based banking strategy. The ongoing repurchase of shares and regular payment of our recently-increased quarterly dividend work together to enhance shareholder value. With all of these factors coming together and trending favorably, we are optimistic about the Company’s ability to maintain positive momentum into 2027.”

Details

We have continued to see meaningful net income and net interest income improvement. The loan and investment portfolios of Trustco Bank (the “Bank”) continue to reprice upward as lower yielding assets mature and are replaced with higher rate loan originations and investment purchases, driving steady improvement in overall asset yields. We believe that this ongoing repricing reflects disciplined loan production aligned with current market conditions. Complementing this, the Bank maintains a strong liquidity position, driven by deposit growth while decreasing funding costs which underscores the Bank's disciplined relationship banking strategy and the value customers place on stability and service.   We believe that these factors position the Bank to generate continued net income and net interest income growth in the coming quarters and deliver long-term value to shareholders. Net interest income was $47.0 million for the third quarter of 2026, an increase of $3.9 million, or 9.1%, compared to the third quarter of 2025, driven by loan growth at higher interest rates and a decrease in interest expense. The net interest margin for the third quarter of 2026 was 2.95%, up 16 basis points from 2.79% in the third quarter of 2025. The yield on interest-earning assets increased to 4.35% in the third quarter of 2026, up 10 basis points from 4.25% in the third quarter of 2025. The cost of interest bearing liabilities decreased to 1.79% in the third quarter of 2026, down 11 basis points from 1.90% in the third quarter of 2025.

Average loans were up $238.1 million, or 4.6%, in the third quarter of 2026 over the same period in 2025. Average residential loans and Home Equity Credit Lines (HECLs), our primary lending focus, were up $177.3 million, or 4.0%, and $50.0 million, or 11.4%, respectively, in the third quarter of 2026 over the same period in 2025. Average commercial loans also increased $13.5 million, or 4.3%, in the third quarter of 2026 over the same period in 2025. Loan growth in the third quarter of 2026 remained steady, driven by continued strength in core relationship lending. Credit quality metrics were stable. Following this period of sustained growth, TrustCo remains confident in the quality of its loan portfolio amid broader market concerns. We believe that our continued focus on strong underwriting within our loan portfolio and conservative lending standards positions us to manage credit risk effectively in the current environment.   The consistent growth in the loan portfolio will likely enhance net interest income in the quarters ahead. Average deposits were up $229.6 million, or 4.2%, for the third quarter of 2026 compared to the third quarter of 2025, primarily as a result of an increase in time deposits, interest bearing checking accounts, and demand deposits. The Bank’s ongoing emphasis on relationship banking, combined with competitive product offerings and digital capabilities, has contributed to a broadening deposit base that supports ongoing loan growth and expansion.

During the third quarter of 2026, the Bank remained focused on capital deployment and allocation, guided by a disciplined framework, with a dividend increase, and share repurchases, these serve as key tools to enhance shareholder value. This reflects our confidence in the long-term strength of the franchise and our focus on capital optimization. During the third quarter, the Bank declared an increased quarterly cash dividend of $0.40 per share, or $1.60 per share on an annualized basis. The declared dividend represents an increase of 5.3% over the prior dividend amount which continues the Banks commitment in paying dividends for over a century.   For the three and nine months ended September 30, 2026, TrustCo repurchased 500 thousand and 1.5 million shares, or 2.9% and 8.3%, respectively, of TrustCo’s outstanding common stock under its previously announced stock repurchase program, which authorizes TrustCo to repurchase up to two million shares, or 11.1%, of TrustCo’s outstanding common stock in 2026. We continue to believe that our approach ensures every dollar of capital is working to generate solid returns, strengthen customer relationships, and enhance shareholder value. As of September 30, 2026, our equity to asset ratio was 9.72%, compared to 10.90% as of September 30, 2025. Book value per share as of September 30, 2026 was $38.20, up 2.4% compared to $37.30 as of a year earlier.

Asset quality remains strong and has been consistent over the past twelve months. TrustCo recorded a provision for credit losses of $850 thousand in the third quarter of 2026, an increase of $600 thousand compared to the same period in 2025.   For the three months ended September 30, 2026, the provision for credit losses was the result of a provision for credit losses on loans of $1.05 million due to loan growth and changes in forward looking economic assumptions, and a benefit for credit losses on unfunded commitments of $200 thousand due to the seasonal decrease in the loan pipeline. Accordingly, increases in the overall provision expense are being driven by loan growth and changes in economic forecasts rather than the deterioration in underlying credit performance. The ratio of allowance for credit losses on loans to total loans was 1.01% and 1.00% as of September 30, 2026 and September 30, 2025, respectively. The allowance for credit losses on loans was $55.2 million as of September 30, 2026, compared to $51.9 million as of September 30, 2025. Nonperforming loans (NPLs) were $21.1 million as of September 30, 2026, compared to $18.5 million as of September 30, 2025. NPLs were 0.39% and 0.36% of total loans as of September 30, 2026 and September 30, 2025, respectively. The coverage ratio, or allowance for credit losses on loans to NPLs, was 261.8% as of September 30, 2026, compared to 280.8% as of September 30, 2025. Nonperforming assets (NPAs) were $22.3 million as of September 30, 2026, compared to $19.7 million as of September 30, 2025.   Asset quality metrics remain stable and well covered by reserves, reflecting the Bank’s conservative underwriting standards.

A conference call to discuss third quarter 2026 results will be held at 9:00 a.m. Eastern Time on October 22, 2026. Those wishing to participate in the call may dial toll-free for North America 1-833-461-5787, Meeting ID 638 789 515. The call will also be audio webcast at https://events.q4inc.com/attendee/638789515. The webcast replay will be available for one year at the same link.

About TrustCo Bank Corp NY

TrustCo Bank Corp NY is a $6.5 billion savings and loan holding company and through its subsidiary, Trustco Bank, operated 133 offices in New York, New Jersey, Vermont, Massachusetts, and Florida as of September 30, 2026.

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

Forward-Looking Statements

All statements in this news release and the related earnings call that are not historical are forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as "anticipate," "intend," "plan," "goal," "seek," "believe," "project," "estimate," "expect," "strategy," "future," "likely," "may," "should," "will," “can” and similar references to future development, results or periods. Examples of forward-looking statements include, among others, statements we make regarding our expectations for our future performance, including our expectations regarding net income, net interest income and shareholder value for future quarters; expectations regarding our future momentum; the anticipated impact of our focus on underwriting within our loan portfolio and conservative lending standards; the expected impact of the continued repricing of our loan and investment portfolios, as well as our liquidity position, on our future net interest and net interest income; our balance sheet’s performance in future interest-rate environments; future overall asset yields; the amount of shares that we expect to repurchase in 2026; and the anticipated effects of our capital management strategy, including our stock repurchase program. Forward-looking statements are based on management’s current expectations, as well as certain assumptions and estimates made by, and information available to, management at the time the statements are made. Such forward-looking statements are subject to factors and uncertainties that could cause TrustCo’s actual results to differ materially from the views, beliefs and projections expressed in such statements. TrustCo wishes to caution readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. The following important factors, among others, in some cases have affected and in the future could affect TrustCo’s actual results and could cause TrustCo’s actual financial performance to differ materially from that expressed in any forward-looking statement: future changes in interest rates; external economic factors, such as changes in monetary policy, ongoing inflationary pressures and continued elevated prices; exposure to credit risk in our lending activities; the risk of weakness in residential real estate markets; our increasing commercial loan portfolio; the sufficiency of our allowance for credit losses on loans to cover actual loan losses; our ability to meet the cash flow requirements of our depositors or borrowers or to meet our operating cash needs to fund corporate expansion and other activities; claims and litigation pertaining to fiduciary responsibility and lender liability; the enforcement of federal cannabis laws and regulations and its impact on our ability to provide services in the cannabis industry; our dependency upon the services of the management team; our disclosure controls and procedures’ ability to prevent or detect errors or acts of fraud; the adequacy of our business continuity and disaster recovery plans; the effectiveness of our risk management framework; the impact of any expansion by us into new lines of business or new products and services; the rising popularity of alternative financial products, including fintech platforms, cryptocurrencies, money market funds, and digital wallets; an increase in the prevalence of fraud and other financial crimes; the impact of severe weather events and climate change on us and the communities we serve, including societal responses to climate change; environmental, social and governance risks and their impact on our reputation and relationships; the chance of a prolonged economic downturn, especially one affecting our geographic market area; instability in global economic conditions and geopolitical matters, including as a result of the conflict between the United States (U.S.) and Iran, as well as volatility in financial markets; the chance of a downgrade in the credit rating of the U.S. government or a default by the U.S. government; the soundness of other financial institutions; U.S. government shutdowns; fluctuations in the trust wealth management fees we receive as a result of investment performance; the impact of regulatory capital rules on our growth; changes in laws and regulations, including changes in cybersecurity or privacy regulations; our compliance with laws designed to protect consumers, including the Community Reinvestment Act and fair lending laws; restrictions on data collection and use; our compliance with the USA PATRIOT Act, Bank Secrecy Act, and other laws and regulations that could result in material fines or sanctions; changes in tax laws; limitations on our ability to pay dividends; TrustCo Realty Corp.’s ability to qualify as a real estate investment trust; changes in accounting standards; competition within our market areas; consumers and businesses’ use of non-banks to complete financial transactions; our reliance on third-party service providers; the impact of data breaches and cyber-attacks; the development and use of artificial intelligence; the impact of a failure in or breach of our operational or security systems or infrastructure, or those of third parties; the impact of an unauthorized disclosure of sensitive or confidential client or customer information; the impact of interruptions in the effective operation of our computer systems; the impact of anti-takeover provisions in our organizational documents; the impact of the manner in which we allocate capital; the impact of the actions of activist shareholders; and other risks and uncertainties set forth in our public filings made with the Securities and Exchange Commission (the “SEC”), including our Annual Report on Form 10-K for the year ended December 31, 2025, our Quarterly Report on Form 10-Q for the first and second quarters of 2026, our upcoming quarterly report on Form 10-Q for the third quarter of 2026, and future reports to be filed with the SEC. The forward-looking statements contained in this news release represent TrustCo management’s judgment as of the date of this news release. TrustCo disclaims, however, any intent or obligation to update forward-looking statements, either as a result of future developments, new information or otherwise, except as may be required by law.

TRUSTCO BANK CORP NY
GLENVILLE, NY
FINANCIAL HIGHLIGHTS
(dollars in thousands, except per share data)
(Unaudited)
		Three months ended
		9/30/2026				6/30/2026				9/30/2025
Summary of operations
Net interest income		$	47,039			$	45,590			$	43,119
Provision for credit losses			850				650				250
Net gains on equity securities			56				844				-
Noninterest income, excluding net gains on equity securities			4,762				5,068				4,689
Noninterest expense			28,019				28,333				26,242
Net income			17,318				16,965				16,258
Per share
Net income per share:
- Basic		$	1.03			$	0.98			$	0.87
- Diluted			1.02				0.98				0.86
Cash dividends			0.40				0.38				0.38
Book value at period end			38.20				38.53				37.30
Market price at period end			54.29				54.91				36.30
At period end
Full time equivalent employees			740				742				738
Full service banking offices			133				132				136
Performance ratios
Return on average assets			1.05	%			1.04	%			1.02	%
Return on average equity			10.57				10.22				9.29
Efficiency ratio (GAAP)			54.03				55.01				54.89
Adjusted Efficiency ratio (1)			54.11				55.71				54.87
Net interest spread			2.56				2.48				2.35
Net interest margin			2.95				2.87				2.79
Dividend payout ratio			38.58				38.36				43.68
Capital ratios at period end
Consolidated equity to assets (GAAP)			9.72	%			10.05	%			10.90	%
Consolidated tangible equity to tangible assets (1)			9.71	%			10.05	%			10.89	%
Asset quality analysis at period end
Nonperforming loans to total loans			0.39	%			0.40	%			0.36	%
Nonperforming assets to total assets			0.34				0.35				0.31
Allowance for credit losses on loans to total loans			1.01				1.01				1.00
Coverage ratio (2)			2.6	x			2.5	x			2.8	x
(1) Non-GAAP Financial Measure, see Non-GAAP Financial Measures Reconciliation.
(2) Calculated as allowance for credit losses on loans divided by total nonperforming loans.

FINANCIAL HIGHLIGHTS, Continued
(dollars in thousands, except per share data)
(Unaudited)
		Nine months ended
		09/30/26				09/30/25
Summary of operations
Net interest income		$	137,337			$	125,238
Provision for credit losses			2,450				1,200
Net gains on equity securities			900				-
Noninterest income, excluding net gains on equity securities			14,671				14,515
Noninterest expense			83,334				78,794
Net income			50,568				45,572
Per share
Net income per share:
- Basic		$	2.92			$	2.41
- Diluted			2.91				2.41
Cash dividends			1.16				1.10
Book value at period end			38.20				37.30
Market price at period end			54.29				36.30
Performance ratios
Return on average assets			1.04	%			0.97	%
Return on average equity			10.15				8.84
Efficiency ratio (GAAP)			54.50				56.38
Adjusted Efficiency ratio (1)			54.72				55.98
Net interest spread			2.49				2.28
Net interest margin			2.89				2.71
Dividend payout ratio			39.41				45.55

(dollars in thousands, except per share data)
(Unaudited)
		Three months ended
		9/30/2026				6/30/2026				3/31/2026				12/31/2025				9/30/2025
Interest and dividend income:
Interest and fees on loans		$	60,875			$	58,757			$	57,565			$	56,886			$	55,953
Interest and dividends on securities available for sale:
U. S. government sponsored enterprises			86				111				149				350				599
State and political subdivisions			-				-				-				-				1
Mortgage-backed securities and collateralized mortgage obligations - residential			1,509				1,486				1,469				1,490				1,583
Corporate bonds			820				776				694				536				265
Small Business Administration - guaranteed participation securities			56				59				63				68				72
Other securities			8				7				8				8				7
Total interest and dividends on securities available for sale			2,479				2,439				2,383				2,452				2,527
Interest on held to maturity securities:
Mortgage-backed securities and collateralized mortgage obligations - residential			43				44				47				50				52
Total interest on held to maturity securities			43				44				47				50				52
Federal Home Loan Bank stock			112				123				126				126				125
Interest on federal funds sold and other short-term investments			6,098				6,344				6,105				6,580				7,376
Total interest income			69,607				67,707				66,226				66,094				66,033
Interest expense:
Interest on deposits:
Interest-bearing checking			642				551				533				501				483
Savings			730				703				675				715				741
Money market deposit accounts			1,597				1,631				1,552				1,810				2,065
Time deposits			19,245				18,863				18,357				18,993				19,427
Interest on short-term borrowings			354				369				401				340				198
Total interest expense			22,568				22,117				21,518				22,359				22,914
Net interest income			47,039				45,590				44,708				43,735				43,119
Less: Provision for credit losses			850				650				950				400				250
Net interest income after provision for credit losses			46,189				44,940				43,758				43,335				42,869
Noninterest income:
Trustco Financial Services income			2,059				1,980				2,135				1,950				1,967
Fees for services to customers			2,409				2,487				2,340				2,192				2,429
Net gains on equity securities			56				844				-				-				-
Other			294				601				366				288				293
Total noninterest income			4,818				5,912				4,841				4,430				4,689
Noninterest expenses:
Salaries and employee benefits			12,776				13,047				12,219				12,242				12,727
Net occupancy expense			4,526				4,381				4,542				4,592				4,470
Equipment expense			2,306				2,082				2,022				2,219				1,938
Professional services			1,744				1,968				1,526				1,083				1,571
Outsourced services			2,800				2,704				2,700				2,100				2,492
Advertising expense			468				586				394				629				290
FDIC and other insurance			1,104				1,101				1,153				1,135				1,052
Other real estate (income) expense, net			(12	)			112				50				161				8
Other			2,307				2,352				2,376				2,549				1,694
Total noninterest expenses			28,019				28,333				26,982				26,710				26,242
Income before taxes			22,988				22,519				21,617				21,055				21,316
Income taxes			5,670				5,554				5,332				5,490				5,058
Net income		$	17,318			$	16,965			$	16,285			$	15,565			$	16,258
Net income per common share:
- Basic		$	1.03			$	0.98			$	0.91			$	0.85			$	0.87
- Diluted			1.02				0.98				0.91				0.85				0.86
Weighted average basic shares (in thousands)			16,842				17,304				17,813				18,275				18,755
Weighted average diluted shares (in thousands)			16,939				17,386				17,876				18,327				18,805

CONSOLIDATED STATEMENTS OF INCOME, Continued
(dollars in thousands, except per share data)
(Unaudited)
		Nine months ended
		09/30/26				09/30/25
Interest and dividend income:
Interest and fees on loans		$	177,197			$	163,960
Interest and dividends on securities available for sale:
U. S. government sponsored enterprises			346				1,809
State and political subdivisions			-				1
Mortgage-backed securities and collateralized mortgage obligations - residential			4,464				4,679
Corporate bonds			2,290				735
Small Business Administration - guaranteed participation securities			178				228
Other securities			23				22
Total interest and dividends on securities available for sale			7,301				7,474
Interest on held to maturity securities:
Mortgage-backed securities-residential			134				163
Total interest on held to maturity securities			134				163
Federal Home Loan Bank stock			361				405
Interest on federal funds sold and other short-term investments			18,547				21,320
Total interest income			203,540				193,322
Interest expense:
Interest on deposits:
Interest-bearing checking			1,726				1,577
Savings			2,108				2,208
Money market deposit accounts			4,780				6,140
Time deposits			56,465				57,605
Interest on short-term borrowings			1,124				554
Total interest expense			66,203				68,084
Net interest income			137,337				125,238
Less: Provision for credit losses			2,450				1,200
Net interest income after provision for credit losses			134,887				124,038
Noninterest income:
Trustco Financial Services income			6,174				5,905
Fees for services to customers			7,236				7,340
Net gains on equity securities			900				-
Other			1,261				1,270
Total noninterest income			15,571				14,515
Noninterest expenses:
Salaries and employee benefits			38,042				36,497
Net occupancy expense			13,449				13,542
Equipment expense			6,410				5,800
Professional services			5,238				5,183
Outsourced services			8,204				7,652
Advertising expense			1,448				955
FDIC and other insurance			3,358				3,376
Other real estate expense, net			150				558
Other			7,035				5,231
Total noninterest expenses			83,334				78,794
Income before taxes			67,124				59,759
Income taxes			16,556				14,187
Net income		$	50,568			$	45,572
Net income per common share:
- Basic		$	2.92			$	2.41
- Diluted			2.91				2.41
Weighted average basic shares (in thousands)			17,317				18,912
Weighted average diluted shares (in thousands)			17,398				18,947

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(dollars in thousands)
(Unaudited)
		9/30/2026				6/30/2026				3/31/2026				12/31/2025				9/30/2025
ASSETS:
Cash and due from banks		$	42,914			$	44,503			$	43,165			$	50,569			$	42,026
Federal funds sold and other short term investments			554,402				652,136				724,943				679,858				653,530
Total cash and cash equivalents			597,316				696,639				768,108				730,427				695,556
Securities available for sale:
U. S. government sponsored enterprises			9,873				14,956				14,887				31,772				51,557
States and political subdivisions			9				9				9				9				18
Mortgage-backed securities and collateralized mortgage obligations - residential			196,688				203,601				205,209				206,290				215,466
Small Business Administration - guaranteed participation securities			9,306				10,153				10,796				11,710				12,330
Corporate bonds			77,434				73,804				69,137				59,932				39,800
Other securities			713				718				708				705				701
Total securities available for sale			294,023				303,241				300,746				310,418				319,872
Held to maturity securities:
Mortgage-backed securities and collateralized mortgage obligations-residential			3,640				3,842				4,097				4,339				4,593
Total held to maturity securities			3,640				3,842				4,097				4,339				4,593
Federal Reserve Bank and Federal Home Loan Bank stock			6,756				6,756				6,601				6,601				6,601
Loans:
Commercial			332,406				322,439				316,763				313,443				311,491
Residential mortgage loans			4,614,353				4,560,717				4,497,911				4,463,260				4,420,813
Home equity line of credit			498,088				484,197				464,887				464,201				447,235
Installment loans			9,439				9,882				10,617				11,556				12,231
Loans, net of deferred net costs			5,454,286				5,377,235				5,290,178				5,252,460				5,191,770
Less: Allowance for credit losses on loans			55,162				54,082				52,994				52,205				51,891
Net loans			5,399,124				5,323,153				5,237,184				5,200,255				5,139,879
Bank premises and equipment, net			42,266				42,273				41,071				40,707				39,718
Operating lease right-of-use assets			32,715				33,872				33,305				33,638				35,291
Other assets			118,220				115,137				116,767				114,315				107,514
Total assets		$	6,494,060			$	6,524,913			$	6,507,879			$	6,440,700			$	6,349,024
LIABILITIES:
Deposits:
Demand		$	817,555			$	824,717			$	811,637			$	814,908			$	795,508
Interest-bearing checking			1,077,289				1,089,746				1,078,520				1,077,141				1,025,582
Savings accounts			1,060,493				1,076,934				1,070,319				1,069,564				1,063,763
Money market deposit accounts			429,555				438,799				442,760				457,389				455,488
Time deposits			2,299,326				2,251,370				2,249,117				2,138,415				2,140,932
Total deposits			5,684,218				5,681,566				5,652,353				5,557,417				5,481,273
Short-term borrowings			98,108				108,382				112,930				120,054				97,749
Operating lease liabilities			35,075				36,361				35,920				36,391				38,180
Accrued expenses and other liabilities			45,334				42,595				35,756				40,249				39,809
Total liabilities			5,862,735				5,868,904				5,836,959				5,754,111				5,657,011
SHAREHOLDERS' EQUITY:
Capital stock			20,119				20,119				20,119				20,119				20,103
Surplus			261,758				261,283				260,808				260,333				259,980
Undivided profits			510,684				499,997				489,540				479,996				471,314
Accumulated other comprehensive income, net of tax			76				6,967				8,241				10,024				2,955
Treasury stock at cost			(161,312	)			(132,357	)			(107,788	)			(83,883	)			(62,339	)
Total shareholders' equity			631,325				656,009				670,920				686,589				692,013
Total liabilities and shareholders' equity		$	6,494,060			$	6,524,913			$	6,507,879			$	6,440,700			$	6,349,024
Outstanding shares (in thousands)			16,528				17,028				17,507				18,029				18,554

NONPERFORMING ASSETS
(dollars in thousands)
(Unaudited)
		9/30/2026				6/30/2026				3/31/2026				12/31/2025				9/30/2025
Nonperforming Assets
New York and other states*
Loans in nonaccrual status:
Commercial		$	2,008			$	1,964			$	1,968			$	1,990			$	292
Real estate mortgage - 1 to 4 family			14,053				15,343				15,212				14,584				14,568
Installment			19				37				43				29				30
Total nonperforming loans			16,080				17,344				17,223				16,603				14,890
Other real estate owned			1,183				1,234				1,364				1,394				1,234
Total nonperforming assets		$	17,263			$	18,578			$	18,587			$	17,997			$	16,124
Florida
Loans in nonaccrual status:
Commercial		$	-			$	-			$	-			$	-			$	-
Real estate mortgage - 1 to 4 family			4,968				4,392				4,222				4,047				3,574
Installment			19				16				20				22				13
Total nonperforming loans			4,987				4,408				4,242				4,069				3,587
Other real estate owned			-				-				-				-				-
Total nonperforming assets		$	4,987			$	4,408			$	4,242			$	4,069			$	3,587
Total
Loans in nonaccrual status:
Commercial		$	2,008			$	1,964			$	1,968			$	1,990			$	292
Real estate mortgage - 1 to 4 family			19,021				19,735				19,434				18,631				18,142
Installment			38				53				63				51				43
Total nonperforming loans			21,067				21,752				21,465				20,672				18,477
Other real estate owned			1,183				1,234				1,364				1,394				1,234
Total nonperforming assets		$	22,250			$	22,986			$	22,829			$	22,066			$	19,711
Quarterly Net (Recoveries) Chargeoffs
New York and other states*
Commercial		$	-			$	-			$	19			$	-			$	-
Real estate mortgage - 1 to 4 family			(44	)			(72	)			(43	)			(33	)			(194	)
Installment			(1	)			(21	)			11				(13	)			(2	)
Total net chargeoffs (recoveries)		$	(45	)		$	(93	)		$	(13	)		$	(46	)		$	(196	)
Florida
Commercial		$	-			$	-			$	(40	)		$	-			$	-
Real estate mortgage - 1 to 4 family			-				-				-				-				-
Installment			15				5				14				32				20
Total net (recoveries) chargeoffs		$	15			$	5			$	(26	)		$	32			$	20
Total
Commercial		$	-			$	-			$	(21	)		$	-			$	-
Real estate mortgage - 1 to 4 family			(44	)			(72	)			(43	)			(33	)			(194	)
Installment			14				(16	)			25				19				18
Total net (recoveries) chargeoffs		$	(30	)		$	(88	)		$	(39	)		$	(14	)		$	(176	)
Asset Quality Ratios
Total nonperforming loans (1)		$	21,067			$	21,752			$	21,465			$	20,672			$	18,477
Total nonperforming assets (1)			22,250				22,986				22,829				22,066				19,711
Total net (recoveries) chargeoffs (2)			(30	)			(88	)			(39	)			(14	)			(176	)
Allowance for credit losses on loans (1)			55,162				54,082				52,994				52,205				51,891
Nonperforming loans to total loans			0.39	%			0.40	%			0.41	%			0.39	%			0.36	%
Nonperforming assets to total assets			0.34	%			0.35	%			0.35	%			0.34	%			0.31	%
Allowance for credit losses on loans to total loans			1.01	%			1.01	%			1.00	%			0.99	%			1.00	%
Coverage ratio (1)			261.8	%			248.6	%			246.9	%			252.5	%			280.8	%
Annualized net (recoveries) chargeoffs to average loans (2)			0.00	%			-0.01	%			0.00	%			0.00	%			-0.01	%
Allowance for credit losses on loans to annualized net chargeoffs (2)			N/A				N/A				N/A				N/A				N/A
* Includes New York, New Jersey, Vermont and Massachusetts.
(1) At period-end
(2) For the three-month period ended

DISTRIBUTION OF ASSETS, LIABILITIES AND SHAREHOLDERS' EQUITY -
INTEREST RATES AND INTEREST DIFFERENTIAL
(dollars in thousands)
(Unaudited)		Three months ended											Three months ended
		September 30, 2026											September 30, 2025
		Average				Interest				Average			Average				Interest				Average
		Balance								Rate			Balance								Rate
Assets
Securities available for sale:
U. S. government sponsored enterprises		$	10,977			$	86			3.13	%		$	69,294			$	599			3.46	%
Mortgage backed securities and collateralized mortgage obligations - residential			217,254				1,509			2.75				237,092				1,583			2.65
State and political subdivisions			9				-			6.77				18				1			6.77
Corporate bonds			75,681				820			4.33				26,512				265			4.00
Small Business Administration - guaranteed participation securities			10,440				56			2.14				13,385				72			2.15
Other			717				8			4.46				700				7			4.00
Total securities available for sale			315,078				2,479			3.15				347,001				2,527			2.91
Federal funds sold and other short-term Investments			649,823				6,098			3.72				662,737				7,376			4.42
Held to maturity securities:
Mortgage backed securities and collateralized mortgage obligations - residential			3,740				43			4.53				4,709				52			4.40
Total held to maturity securities			3,740				43			4.53				4,709				52			4.40
Federal Home Loan Bank stock			6,756				112			6.63				6,601				125			7.57
Commercial loans			327,267				4,654			5.69				313,800				4,426			5.64
Residential mortgage loans			4,586,955				48,286			4.21				4,409,645				44,089			4.00
Home equity lines of credit			490,310				7,739			6.26				440,288				7,215			6.50
Installment loans			9,182				196			8.46				11,842				223			7.48
Loans, net of unearned income			5,413,714				60,875			4.49				5,175,575				55,953			4.32
Total interest earning assets			6,389,111			$	69,607			4.35				6,196,623			$	66,033			4.25
Allowance for credit losses on loans			(54,467	)										(51,706	)
Cash & non-interest earning assets			219,106											208,701
Total assets		$	6,553,750										$	6,353,618
Liabilities and shareholders' equity
Deposits:
Interest bearing checking accounts		$	1,092,564			$	642			0.23	%		$	1,035,366			$	483			0.18	%
Money market accounts			442,480				1,597			1.43				464,334				2,065			1.76
Savings			1,076,926				730			0.27				1,077,441				741			0.27
Time deposits			2,288,063				19,245			3.34				2,125,920				19,427			3.63
Total interest bearing deposits			4,900,033				22,214			1.80				4,703,061				22,716			1.92
Short-term borrowings			102,386				354			1.37				87,348				198			0.90
Total interest bearing liabilities			5,002,419			$	22,568			1.79				4,790,409			$	22,914			1.90
Demand deposits			825,203											792,621
Other liabilities			75,989											76,502
Shareholders' equity			650,139											694,086
Total liabilities and shareholders' equity		$	6,553,750										$	6,353,618
Net interest income						$	47,039										$	43,119
Net interest spread										2.56	%										2.35	%
Net interest margin (net interest income to total interest earning assets)										2.95	%										2.79	%
DISTRIBUTION OF ASSETS, LIABILITIES AND SHAREHOLDERS' EQUITY -
INTEREST RATES AND INTEREST DIFFERENTIAL, Continued
(dollars in thousands)
(Unaudited)		Nine months ended											Nine Months Ended
		September 30, 2026											September 30, 2025
		Average				Interest				Average			Average				Interest				Average
		Balance								Rate			Balance								Rate
Assets
Securities available for sale:
U. S. government sponsored enterprises		$	17,681				346			2.61	%		$	72,461				1,809			3.33	%
Mortgage backed securities and collateralized mortgage obligations - residential			219,451				4,464			2.71				240,401				4,679			2.59
State and political subdivisions			9				-			6.77				18				1			6.77
Corporate bonds			70,395				2,290			4.34				30,696				735			3.19
Small Business Administration - guaranteed participation securities			11,098				178			2.14				14,151				228			2.15
Other			712				23			6.46				698				22			4.20
Total securities available for sale			319,346				7,301			4.57				358,425				7,474			2.78
Federal funds sold and other short-term Investments			668,926				18,547			3.71				641,793				21,320			4.44
Held to maturity securities:
Mortgage backed securities and collateralized mortgage obligations - residential			3,972				134			4.50				4,969				163			4.37
Total held to maturity securities			3,972				134			4.50				4,969				163			4.37
Federal Home Loan Bank stock			6,704				361			10.77				6,567				405			8.22
Commercial loans			320,738				13,565			5.64				306,091				12,851			5.60
Residential mortgage loans			4,532,068				140,718			4.14				4,394,245				129,940			3.94
Home equity lines of credit			476,358				22,297			6.26				427,830				20,480			6.40
Installment loans			9,923				617			8.32				12,440				689			7.40
Loans, net of unearned income			5,339,087				177,197			4.43				5,140,606				163,960			4.25
Total interest earning assets			6,338,035				203,540			4.28				6,152,360				193,322			4.19
Allowance for credit losses on loans			(53,483	)										(50,991	)
Cash & non-interest earning assets			220,871											204,651
Total assets		$	6,505,423										$	6,306,020
Liabilities and shareholders' equity
Deposits:
Interest bearing checking accounts	$		1,079,452				1,726			0.21	%	$		1,037,598				1,577			0.20	%
Money market accounts			445,015				4,780			1.44				468,059				6,140			1.75
Savings			1,072,414				2,108			0.26				1,084,712				2,208			0.27
Time deposits			2,244,343				56,465			3.36				2,088,844				57,605			3.69
Total interest bearing deposits			4,841,224				65,079			1.80				4,679,213				67,530			1.93
Short-term borrowings			109,206				1,124			1.38				83,885				554			0.88
Total interest bearing liabilities			4,950,430				66,203			1.79				4,763,098				68,084			1.91
Demand deposits			814,465											777,573
Other liabilities			74,106											76,372
Shareholders' equity			666,422											688,977
Total liabilities and shareholders' equity	$		6,505,423									$		6,306,020
Net interest income							137,337											125,238
Net interest spread										2.49	%										2.28	%
Net interest margin (net interest income to total interest earning assets)										2.89	%										2.71	%

Non-GAAP Financial Measures Reconciliation

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

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

We believe that these non-GAAP financial measures provide information that is important to investors and that is useful in understanding our financial results. Our management internally assesses our performance based, in part, on these measures. However, these non-GAAP financial measures are supplemental and not a substitute for an analysis based on GAAP measures. As other companies may use different calculations for these measures, this presentation may not be comparable to other similarly titled measures reported by other companies. A reconciliation of the non-GAAP measures of tangible equity as a percentage of tangible assets, and adjusted efficiency ratio to the most directly comparable GAAP measures is set forth below.  

NON-GAAP FINANCIAL MEASURES RECONCILIATION
(dollars in thousands)
(Unaudited)
				9/30/2026				6/30/2026				9/30/2025
Tangible Equity to Tangible Assets
Equity (GAAP)				$	631,325			$	656,009			$	692,013
Less: Intangible assets					553				553				553
Tangible equity (Non-GAAP)				$	630,772			$	655,456			$	691,460
Total Assets (GAAP)				$	6,494,060			$	6,524,913			$	6,349,024
Less: Intangible assets					553				553				553
Tangible assets (Non-GAAP)				$	6,493,507			$	6,524,360			$	6,348,471
Consolidated Equity to Assets (GAAP)					9.72	%			10.05	%			10.90	%
Consolidated Tangible Equity to Tangible Assets (Non-GAAP)					9.71	%			10.05	%			10.89	%
				Three months ended												Nine months ended
Efficiency and Adjusted Efficiency Ratios				9/30/2026				6/30/2026				9/30/2025				9/30/2026				9/30/2025
Net interest income (GAAP)		A		$	47,039			$	45,590			$	43,119			$	137,337			$	125,238
Non-interest income (GAAP)		B			4,818				5,912				4,689				15,571				14,515
Less: Net gains on equity securities		C			56				844				-				900				-
Revenue used for efficiency ratio (Non-GAAP)		D		$	51,801			$	50,658			$	47,808			$	152,008			$	139,753
Total noninterest expense (GAAP)		E		$	28,019			$	28,333			$	26,242			$	83,334			$	78,794
Less: Other real estate expense, net		F			(12	)			112				8				150				558
Expense used for efficiency ratio (Non-GAAP)		G		$	28,031			$	28,221			$	26,234			$	83,184			$	78,236
Efficiency Ratio (GAAP)		E/(A+B)			54.03	%			55.01	%			54.89	%			54.50	%			56.38	%
Adjusted Efficiency Ratio (Non-GAAP)		G/D			54.11	%			55.71	%			54.87	%			54.72	%			55.98	%

Subsidiary:	Trustco Bank
Contact:	Robert Leonard
	Executive Vice President
	(518) 381-3693
	Lauren A. McCormick
	Vice President, Treasurer, and
	Assistant Corporate Secretary
	(518) 381-3673

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were TrustCo's third-quarter 2026 earnings?

TrustCo earned $17.3 million, or $1.02 per diluted share, in the third quarter of 2026. Net income increased 6.5% and diluted earnings per share increased 18.6% compared with the third quarter of 2025.

How much did TrustCo increase its quarterly dividend in 2026?

TrustCo increased its quarterly cash dividend 5.3% to $0.40 per share. The dividend declared during the third quarter represents $1.60 per share on an annualized basis.

Why did TrustCo's third-quarter 2026 credit-loss provision increase?

TrustCo attributed the increased provision to loan growth and changes in economic forecasts, rather than deterioration in underlying credit performance. The quarter included a $1.05 million provision for loan losses, partly offset by a $200 thousand benefit on unfunded commitments associated with a seasonal decrease in the loan pipeline.

How many shares did TrustCo repurchase during 2026?

TrustCo repurchased 1.5 million shares, or 8.3% of its outstanding common stock, during the first nine months of 2026. That included 500 thousand shares, or 2.9%, in the third quarter. Its previously announced 2026 program authorizes repurchases of up to two million shares, or 11.1% of outstanding common stock.