Earnings rise at TrustCo Bank Corp (NASDAQ: TRST) on margin gains
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
TrustCo Bank Corp NY reported stronger first quarter 2026 results. Net income was $16.3 million, up from $14.3 million a year earlier, with diluted EPS rising to $0.91 from $0.75. Net interest income grew 10.7% year over year to $44.7 million as loan portfolio repricing and disciplined deposit pricing expanded net interest margin to 2.84% from 2.64%.
Total loans reached about $5.29 billion, with average loans up $158.9 million or 3.1%, while average deposits increased $157.7 million or 2.9%. Asset quality remained solid, with nonperforming loans at $21.5 million, or 0.41% of total loans, and an allowance for credit losses of $53.0 million, or 1.00% of total loans.
TrustCo continued active capital return, repurchasing 522 thousand shares, or 2.9% of outstanding common stock, under a 2026 program authorizing up to two million shares. Book value per share increased to $38.32 from $36.16, with the equity-to-assets ratio at 10.31% and a quarterly dividend of $0.38 per share.
Positive
- Double-digit earnings and net interest income growth: Q1 2026 net income rose to $16.3 million from $14.3 million, with net interest income up 10.7% year over year to $44.7 million and net interest margin expanding to 2.84% from 2.64%.
- Capital return and book value growth: TrustCo repurchased 522 thousand shares (2.9% of outstanding stock) under its 2026 program while increasing book value per share to $38.32, up 6.0% from $36.16 a year earlier.
Negative
- None.
Insights
TrustCo delivers double-digit earnings and margin growth with stable credit quality.
TrustCo Bank Corp NY posted first quarter 2026 net income of $16.3 million, about a 14% increase year over year, as net interest income rose 10.7% to $44.7 million. Net interest margin improved to 2.84% from 2.64%, reflecting higher asset yields and disciplined deposit pricing.
Loan balances continued to expand, with average loans up $158.9 million or 3.1%, led by residential mortgages and home equity credit lines. Average deposits grew $157.7 million or 2.9%, supporting relationship-based funding. Despite modestly higher nonperforming loans at $21.5 million or 0.41% of total loans, the allowance for credit losses remained strong at $53.0 million or 1.00% of loans.
Capital generation and return were solid: book value per share increased to $38.32, the equity-to-assets ratio was 10.31%, and the company repurchased 522 thousand shares, 2.9% of outstanding stock, under a program authorizing up to two million shares in 2026. These results, combined with a quarterly dividend of $0.38 per share and an efficiency ratio of 54.46%, indicate improved profitability and cost control compared with the prior year period.
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Net income: $16.3M
Diluted EPS: $0.91
Net interest income: $44.7M
+5 more
8 metrics
Net income
$16.3M
Three months ended March 31, 2026; compared to $14.3M in Q1 2025
Diluted EPS
$0.91
Q1 2026 diluted earnings per share vs $0.75 in Q1 2025
Net interest income
$44.7M
Q1 2026, up 10.7% year over year from $40.4M
Net interest margin
2.84%
Q1 2026 vs 2.64% in Q1 2025
Average loans
$5.27B
Q1 2026 loans; average up $158.9M or 3.1% year over year
Nonperforming loans ratio
0.41%
Nonperforming loans to total loans as of March 31, 2026
Allowance for credit losses
$53.0M
Allowance for credit losses on loans, 1.00% of total loans, March 31, 2026
Share repurchases
522,000 shares
Q1 2026 repurchases, 2.9% of outstanding common stock
Key Terms
net interest margin, provision for credit losses, nonperforming loans, coverage ratio, +2 more
6 terms
net interest margin financial
"the net interest margin for the first quarter of 2026 was 2.84%, up 20 basis points from 2.64% in the first quarter of 2025"
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.
provision for credit losses financial
"TrustCo recorded a provision for credit losses of $950 thousand in the first quarter of 2026"
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 $21.5 million as of March 31, 2026"
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.
coverage ratio financial
"The coverage ratio, or allowance for credit losses on loans to NPLs, was 246.9% as of March 31, 2026"
efficiency ratio financial
"Efficiency ratio (GAAP) ... 54.46% ... Adjusted Efficiency ratio (1) ... 54.35%"
A measure of how much a company spends to produce each dollar of revenue, usually shown as operating expenses divided by revenue and expressed as a percentage. Think of it as a household’s budget: a lower percentage means more of each dollar earned stays as profit, while a higher number means costs are eating into returns. Investors use it to judge cost control and compare how efficiently companies turn revenue into earnings, especially in banks and financial firms.
tangible equity to tangible assets financial
"Consolidated Tangible Equity to Tangible Assets (Non-GAAP) ... 10.30%"
Earnings Snapshot
Net income: $16.3M
Q1 2026
Net income
$16.3M
+14% YoY
Diluted EPS
$0.91
up from $0.75 in Q1 2025
Net interest income
$44.7M
+10.7% YoY
Net interest margin
2.84%
from 2.64% in Q1 2025
Return on average assets
1.02%
vs 0.93% in Q1 2025
Return on average equity
9.66%
vs 8.49% in Q1 2025
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT PURSUANT
TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (date of earliest event reported): April 21, 2026
(Exact name of registrant as specified in its charter)
|
|
|
|
|
State or Other Jurisdiction of Incorporation or Organization
|
Commission File No.
|
I.R.S. Employer Identification Number
|
(Address of principal executive offices)
(518 ) 377-3311
(Registrant’s Telephone Number,
Including Area Code)
NOT APPLICABLE
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of
the following provisions:
|
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
|
|
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
|
|
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
|
|
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
|
Securities registered pursuant to Section 12(b) of the Act:
|
Title of each class
|
Trading Symbol(s)
|
Name of each exchange on which registered
|
|||
|
|
|
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2
of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised
financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
TrustCo Bank Corp NY
| Item 2.02. |
Results of Operations and Financial Condition
|
On April 21, 2026 TrustCo Bank Corp NY (“TrustCo”) issued a press release with results for the quarter ending March 31, 2026. Attached is a copy of the
press release labeled as Exhibit 99(a).
|
Item 9.01.
|
Financial Statements and Exhibits
|
| (d) |
Exhibits
|
|
Reg S-K Exhibit No.
|
Description
|
|
|
|
| 99(a) |
Press release dated April 21, 2026 for the period ending March 31, 2026, regarding quarterly results.
|
|
104
|
Cover Page Interactive Data File – the cover page XBRL tags are embedded within the Inline XBRL document.
|
-2-
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
Dated: April 21, 2026
|
TrustCo Bank Corp NY
|
||
|
(Registrant)
|
||
|
By:
|
/s/ Michael M. Ozimek
|
|
|
Michael M. Ozimek
|
||
|
Executive Vice President and
|
||
|
Chief Financial Officer
|
||
-3-
Exhibit 99(a)
5 Sarnowski Drive, Glenville, New York, 12302
|
News Release
|
| Subsidiary: Trustco Bank |
Nasdaq -- TRST |
| Contact: |
Robert Leonard
|
Executive Vice President
(518) 381-3693
Lauren A. McCormick
Vice President, Treasurer, and
Assistant Corporate Secretary
(518) 381-3673
FOR IMMEDIATE RELEASE:
TrustCo Reports First Quarter 2026 Net Income of $16.3 Million;
Notes Loan Portfolio Repricing
Executive Snapshot:
| • |
Financial results:
|
| o |
Key metrics for the first quarter 2026 compared to the first quarter of 2025:
|
| ◾ |
Net income of $16.3 million increased 14.1%
compared to $14.3 million
|
| ◾ |
Diluted earnings per share of $0.91 increased 21.3%
compared to $0.75
|
| ◾ |
Net interest margin of 2.84%, up 20 basis points
from 2.64%
|
| ◾ |
Return on Average Assets of 1.02%, up 9.7% from
0.93%
|
| ◾ |
Return on Average Equity of 9.66%, up 13.8% from
8.49%
|
| ◾ |
Net interest income of $44.7 million, up 10.7% from
$40.4 million
|
| • |
Capital position and Stock Repurchase Program:
|
| o |
Book value per share as of March 31, 2026 was $38.32, up from $36.16 as of March 31, 2025
|
| o |
More than a half million shares (522,226), or 2.9%, of
TrustCo common stock were purchased under the Stock Repurchase Program during the first quarter of 2026
|
| o |
On pace to complete the repurchase of two million shares or 11.1% of TrustCo common stock during 2026
|
Glenville, New York – April 21, 2026
TrustCo Bank Corp NY (TrustCo, NASDAQ: TRST) today announced strong financial results for the
first quarter of 2026 highlighted by a substantial increase in net interest income, continued margin expansion, and sustained loan and deposit growth across core lending and deposit categories. For the three months ended March 31, 2026, net
interest income increased 10.7% year over year to $44.7 million, supported by the ongoing asset repricing across our loan portfolio at higher yields and effective execution of deposit pricing strategies, which together more than offset competitive
pressures on deposit pricing. For the three months ended March 31, 2026, net interest margin expanded to 2.84% from 2.64% in the prior year period, driven by enhanced asset yields and disciplined deposit pricing strategies. This resulted in first
quarter 2026 net income of $16.3 million, or $0.91 diluted earnings per share, compared to net income of $14.3 million, or $0.75 diluted earnings per share, for the first quarter 2025. Loan balances expanded throughout the quarter, with total
average loans increasing $158.9 million for the first quarter 2026 over the same period in 2025. 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 solid underwriting within our loan portfolio and conservative lending standards positions us to manage credit risk effectively in the current environment.
Page | 1
Overview
Chairman, President, and CEO, Robert J. McCormick said “Our shareholders can be proud of the net income of $16.3 million we posted for the quarter, a 14% increase
year-over-year. As expected, this performance is due in significant part to repricing in our loan portfolio, which now exceeds $5.29 billion. Our trademark discipline with respect to deposit pricing resulted in a 4% year-over-year improvement in
interest expense. Together, these successes contributed to margin expansion of 7.6% over the year. Nonperforming loans remain immaterial as we continue to prioritize high-quality credit and maintain a clean asset profile, while reaching another
all-time high in our loan portfolio. Over the latest one-year period, our share price is up $13 and while we realize that market valuation is always a moving target, delivering a 49% total return with dividends reinvested represents substantial
value creation for our owners and is a testament to the effectiveness our team’s strategy.”
Details
We have continued to see meaningful net interest income improvement, and management expects net interest income improvement to remain sustainable. The Bank’s loan and
investment portfolios 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, providing flexibility to support future growth as funding conditions continue to evolve. We
believe that, together, these factors position the Bank to continue net interest income growth in the coming quarters and deliver long-term value to shareholders. Net interest income was $44.7 million for the first quarter of 2026, an increase of
$4.3 million, or 10.7%, compared to the first quarter of 2025, driven by loan growth at higher interest rates, and a decrease in interest expense. The net interest margin for the first quarter of 2026 was 2.84%, up 20 basis points from 2.64% in
the first quarter of 2025. The yield on interest earnings assets increased to 4.23% in the first quarter of 2026, up 10 basis points from 4.13% in the first quarter of 2025. The cost of interest bearing liabilities decreased to 1.79% in the first
quarter of 2026, down from 1.92% in the first quarter of 2025.
Average loans were up $158.9 million, or 3.1%, in the first quarter of 2026 over the same period in 2025. Average residential loans and Home Equity Credit Lines
(HECLs), our primary lending focus, were up $93.2 million, or 2.1%, and $50.8 million, or 12.3%, respectively, in the first quarter 2026 over the same period in 2025. Average commercial loans also increased $17.1 million, or 5.8%, in the first
quarter 2026 over the same period in 2025. Loan growth in the first quarter of 2026 remained steady, driven by continued strength in core relationship lending. Credit quality metrics were stable, while the Bank increased reserves modestly to
reflect a more cautious economic outlook. Interest rates and selective underwriting standards contributed to the measured pace of originations during the quarter. The consistent growth in the loan portfolio will likely enhance net interest income
in the quarters ahead. Average deposits were up $157.7 million, or 2.9%, for the first quarter of 2026 compared to the first 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.
Page | 2
During the first quarter of 2026, the Bank remained focused on capital deployment and allocation, guided by a disciplined framework, with share repurchases continuing
to serve as a key tool to enhance shareholder value. This reflects our confidence in the long-term strength of the franchise and our focus on capital optimization. For the three months ended March 31, 2026, TrustCo repurchased 522 thousand shares,
or 2.9%, of TrustCo’s outstanding common stock under its previously announced stock repurchase program that allows the Company to repurchase up to two million shares, or 11.1%, of TrustCo 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 March 31, 2026, our equity to asset ratio was 10.31%, compared to 10.85% as of March 31, 2025.
Book value per share as of March 31, 2026 was $38.32, up 6.0% compared to $36.16 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 $950 thousand in the first quarter
of 2026, an increase of $650 thousand compared to the same period in 2025. For the three months ended March 31, 2026, the provision for credit losses was the result of a provision for credit losses on loans of $750 thousand and a provision for
credit losses on unfunded commitments of $200 thousand. The ratio of allowance for credit losses on loans to total loans was 1.00% and 0.99% as of March 31, 2026 and 2025, respectively. The allowance for credit losses on loans was $53.0 million
as of March 31, 2026, compared to $50.6 million as of March 31, 2025. Nonperforming loans (NPLs) were $21.5 million as of March 31, 2026, compared to $18.8 million as of March 31, 2025. NPLs were 0.41% and 0.37% of total loans as of March 31,
2026 and 2025, respectively. The coverage ratio, or allowance for credit losses on loans to NPLs, was 246.9% as of March 31, 2026, compared to 269.8% as of March 31, 2025. Nonperforming assets (NPAs) were $22.8 million as of March 31, 2026,
compared to $20.9 million as of March 31, 2025. While NPLs increased modestly during the quarter, asset quality metrics remain stable and well covered by reserves, reflecting the Bank’s conservative underwriting standards.
A conference call to discuss first quarter 2026 results will be held at 9:00 a.m. Eastern Time on April 22, 2026. Those wishing to
participate in the call may dial toll-free for the United States and Canada at 1-888-672-2415, Conference ID 4207347. A replay of the call will be available for thirty days by dialing toll-free for the United States and Canada at 1-800-770-2030,
Playback ID 4207347. The call will also be audio webcast at https://events.q4inc.com/attendee/269280990, and
will be available for one year.
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 March 31, 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.
Page | 3
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” 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 interest income and shareholder value for future quarters; the impact of the continued repricing of our loan and investment portfolios, as well as our liquidity position, on our future net interest income and 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 actual
results to differ materially for TrustCo 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 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 CRA 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, as well as our upcoming quarterly report on Form 10-Q for the first 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.
Page | 4
TRUSTCO BANK CORP NY
GLENVILLE, NY
FINANCIAL HIGHLIGHTS
(dollars in thousands, except per share data)
(Unaudited)
|
Three months ended
|
||||||||||||
|
3/31/2026
|
12/31/2025
|
3/31/2025
|
||||||||||
|
Summary of operations
|
||||||||||||
|
Net interest income
|
$
|
44,708
|
$
|
43,735
|
$
|
40,373
|
||||||
|
Provision for credit losses
|
950
|
400
|
300
|
|||||||||
|
Noninterest income
|
4,841
|
4,430
|
4,974
|
|||||||||
|
Noninterest expense
|
26,982
|
26,710
|
26,329
|
|||||||||
|
Net income
|
16,285
|
15,565
|
14,275
|
|||||||||
|
Per share
|
||||||||||||
|
Net income per share:
|
||||||||||||
|
- Basic
|
$
|
0.91
|
$
|
0.85
|
$
|
0.75
|
||||||
|
- Diluted
|
0.91
|
0.85
|
0.75
|
|||||||||
|
Cash dividends
|
0.38
|
0.38
|
0.36
|
|||||||||
|
Book value at period end
|
38.32
|
38.08
|
36.16
|
|||||||||
|
Market price at period end
|
43.78
|
41.33
|
30.48
|
|||||||||
|
At period end
|
||||||||||||
|
Full time equivalent employees
|
740
|
743
|
740
|
|||||||||
|
Full service banking offices
|
133
|
134
|
136
|
|||||||||
|
Performance ratios
|
||||||||||||
|
Return on average assets
|
1.02
|
%
|
0.97
|
%
|
0.93
|
%
|
||||||
|
Return on average equity
|
9.66
|
8.99
|
8.49
|
|||||||||
|
Efficiency ratio (GAAP)
|
54.46
|
55.46
|
58.06
|
|||||||||
|
Adjusted Efficiency ratio (1)
|
54.35
|
55.12
|
58.00
|
|||||||||
|
Net interest spread
|
2.44
|
2.40
|
2.21
|
|||||||||
|
Net interest margin
|
2.84
|
2.82
|
2.64
|
|||||||||
|
Dividend payout ratio
|
41.40
|
44.14
|
47.97
|
|||||||||
|
Capital ratios at period end
|
||||||||||||
|
Consolidated equity to assets (GAAP)
|
10.31
|
%
|
10.66
|
%
|
10.85
|
%
|
||||||
|
Consolidated tangible equity to tangible assets (1)
|
10.30
|
%
|
10.65
|
%
|
10.84
|
%
|
||||||
|
Asset quality analysis at period end
|
||||||||||||
|
Nonperforming loans to total loans
|
0.41
|
%
|
0.39
|
%
|
0.37
|
%
|
||||||
|
Nonperforming assets to total assets
|
0.35
|
0.34
|
0.33
|
|||||||||
|
Allowance for credit losses on loans to total loans
|
1.00
|
0.99
|
0.99
|
|||||||||
|
Coverage ratio (2)
|
2.5
|
x
|
2.5
|
x
|
2.7
|
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.
Page | 5
CONSOLIDATED STATEMENTS OF INCOME
(dollars in thousands, except per share data)
|
(Unaudited)
|
||||||||||||||||||||
|
Three months ended
|
||||||||||||||||||||
|
|
3/31/2026
|
12/31/2025
|
9/30/2025
|
6/30/2025
|
3/31/2025
|
|||||||||||||||
|
Interest and dividend income:
|
||||||||||||||||||||
|
Interest and fees on loans
|
$
|
57,565
|
$
|
56,886
|
$
|
55,953
|
$
|
54,557
|
$
|
53,450
|
||||||||||
|
Interest and dividends on securities available for sale:
|
||||||||||||||||||||
|
U. S. government sponsored enterprises
|
149
|
350
|
599
|
614
|
596
|
|||||||||||||||
|
State and political subdivisions
|
-
|
-
|
1
|
-
|
-
|
|||||||||||||||
|
Mortgage-backed securities and collateralized mortgage obligations - residential
|
1,469
|
1,490
|
1,583
|
1,613
|
1,483
|
|||||||||||||||
|
Corporate bonds
|
694
|
536
|
265
|
210
|
260
|
|||||||||||||||
|
Small Business Administration - guaranteed participation securities
|
63
|
68
|
72
|
75
|
81
|
|||||||||||||||
|
Other securities
|
8
|
8
|
7
|
8
|
7
|
|||||||||||||||
|
Total interest and dividends on securities available for sale
|
2,383
|
2,452
|
2,527
|
2,520
|
2,427
|
|||||||||||||||
|
|
||||||||||||||||||||
|
Interest on held to maturity securities:
|
||||||||||||||||||||
|
Mortgage-backed securities and collateralized mortgage obligations - residential
|
47
|
50
|
52
|
54
|
57
|
|||||||||||||||
|
Total interest on held to maturity securities
|
47
|
50
|
52
|
54
|
57
|
|||||||||||||||
|
|
||||||||||||||||||||
|
Federal Home Loan Bank stock
|
126
|
126
|
125
|
129
|
151
|
|||||||||||||||
|
|
||||||||||||||||||||
|
Interest on federal funds sold and other short-term investments
|
6,105
|
6,580
|
7,376
|
7,212
|
6,732
|
|||||||||||||||
|
Total interest income
|
66,226
|
66,094
|
66,033
|
64,472
|
62,817
|
|||||||||||||||
|
|
||||||||||||||||||||
|
Interest expense:
|
||||||||||||||||||||
|
Interest on deposits:
|
||||||||||||||||||||
|
Interest-bearing checking
|
533
|
501
|
483
|
536
|
558
|
|||||||||||||||
|
Savings
|
675
|
715
|
741
|
733
|
734
|
|||||||||||||||
|
Money market deposit accounts
|
1,552
|
1,810
|
2,065
|
2,086
|
1,989
|
|||||||||||||||
|
Time deposits
|
18,357
|
18,993
|
19,427
|
19,195
|
18,983
|
|||||||||||||||
|
Interest on short-term borrowings
|
401
|
340
|
198
|
176
|
180
|
|||||||||||||||
|
Total interest expense
|
21,518
|
22,359
|
22,914
|
22,726
|
22,444
|
|||||||||||||||
|
|
||||||||||||||||||||
|
Net interest income
|
44,708
|
43,735
|
43,119
|
41,746
|
40,373
|
|||||||||||||||
|
|
||||||||||||||||||||
|
Less: Provision for credit losses
|
950
|
400
|
250
|
650
|
300
|
|||||||||||||||
|
Net interest income after provision for credit losses
|
43,758
|
43,335
|
42,869
|
41,096
|
40,073
|
|||||||||||||||
|
|
||||||||||||||||||||
|
Noninterest income:
|
||||||||||||||||||||
|
Trustco Financial Services income
|
2,135
|
1,950
|
1,967
|
1,818
|
2,120
|
|||||||||||||||
|
Fees for services to customers
|
2,340
|
2,192
|
2,429
|
2,266
|
2,645
|
|||||||||||||||
|
Other
|
366
|
288
|
293
|
768
|
209
|
|||||||||||||||
|
Total noninterest income
|
4,841
|
4,430
|
4,689
|
4,852
|
4,974
|
|||||||||||||||
|
|
||||||||||||||||||||
|
Noninterest expenses:
|
||||||||||||||||||||
|
Salaries and employee benefits
|
12,219
|
12,242
|
12,727
|
11,876
|
11,894
|
|||||||||||||||
|
Net occupancy expense
|
4,542
|
4,592
|
4,470
|
4,518
|
4,554
|
|||||||||||||||
|
Equipment expense
|
2,022
|
2,219
|
1,938
|
1,918
|
1,944
|
|||||||||||||||
|
Professional services
|
1,526
|
1,083
|
1,571
|
1,886
|
1,726
|
|||||||||||||||
|
Outsourced services
|
2,700
|
2,100
|
2,492
|
2,460
|
2,700
|
|||||||||||||||
|
Advertising expense
|
394
|
629
|
290
|
304
|
361
|
|||||||||||||||
|
FDIC and other insurance
|
1,153
|
1,135
|
1,052
|
1,136
|
1,188
|
|||||||||||||||
|
Other real estate expense, net
|
50
|
161
|
8
|
522
|
28
|
|||||||||||||||
|
Other
|
2,376
|
2,549
|
1,694
|
1,603
|
1,934
|
|||||||||||||||
|
Total noninterest expenses
|
26,982
|
26,710
|
26,242
|
26,223
|
26,329
|
|||||||||||||||
|
|
||||||||||||||||||||
|
Income before taxes
|
21,617
|
21,055
|
21,316
|
19,725
|
18,718
|
|||||||||||||||
|
Income taxes
|
5,332
|
5,490
|
5,058
|
4,686
|
4,443
|
|||||||||||||||
|
|
||||||||||||||||||||
|
Net income
|
$
|
16,285
|
$
|
15,565
|
$
|
16,258
|
$
|
15,039
|
$
|
14,275
|
||||||||||
|
|
||||||||||||||||||||
|
Net income per common share:
|
||||||||||||||||||||
|
- Basic
|
$
|
0.91
|
$
|
0.85
|
$
|
0.87
|
$
|
0.79
|
$
|
0.75
|
||||||||||
|
|
||||||||||||||||||||
|
- Diluted
|
0.91
|
0.85
|
0.86
|
0.79
|
0.75
|
|||||||||||||||
|
|
||||||||||||||||||||
|
Weighted average basic shares (in thousands)
|
17,813
|
18,275
|
18,755
|
18,965
|
19,020
|
|||||||||||||||
|
Weighted average diluted shares (in thousands)
|
17,876
|
18,327
|
18,805
|
18,994
|
19,044
|
|||||||||||||||
Page | 6
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(dollars in thousands)
(Unaudited)
|
3/31/2026
|
12/31/2025
|
9/30/2025
|
6/30/2025
|
3/31/2025
|
||||||||||||||||
|
ASSETS:
|
||||||||||||||||||||
|
Cash and due from banks
|
$
|
43,165
|
$
|
50,569
|
$
|
42,026
|
$
|
45,218
|
$
|
48,782
|
||||||||||
|
Federal funds sold and other short term investments
|
724,943
|
679,858
|
653,530
|
668,373
|
707,355
|
|||||||||||||||
|
Total cash and cash equivalents
|
768,108
|
730,427
|
695,556
|
713,591
|
756,137
|
|||||||||||||||
|
|
||||||||||||||||||||
|
Securities available for sale:
|
||||||||||||||||||||
|
U. S. government sponsored enterprises
|
14,887
|
31,772
|
51,557
|
71,241
|
65,942
|
|||||||||||||||
|
States and political subdivisions
|
9
|
9
|
18
|
18
|
18
|
|||||||||||||||
|
Mortgage-backed securities and collateralized mortgage obligations - residential
|
205,209
|
206,290
|
215,466
|
221,721
|
219,333
|
|||||||||||||||
|
Small Business Administration - guaranteed participation securities
|
10,796
|
11,710
|
12,330
|
12,945
|
13,683
|
|||||||||||||||
|
Corporate bonds
|
69,137
|
59,932
|
39,800
|
29,943
|
24,779
|
|||||||||||||||
|
Other securities
|
708
|
705
|
701
|
698
|
698
|
|||||||||||||||
|
Total securities available for sale
|
300,746
|
310,418
|
319,872
|
336,566
|
324,453
|
|||||||||||||||
|
|
||||||||||||||||||||
|
Held to maturity securities:
|
||||||||||||||||||||
|
Mortgage-backed securities and collateralized mortgage obligations-residential
|
4,097
|
4,339
|
4,593
|
4,836
|
5,090
|
|||||||||||||||
|
Total held to maturity securities
|
4,097
|
4,339
|
4,593
|
4,836
|
5,090
|
|||||||||||||||
|
|
||||||||||||||||||||
|
Federal Reserve Bank and Federal Home Loan Bank stock
|
6,601
|
6,601
|
6,601
|
6,601
|
6,507
|
|||||||||||||||
|
|
||||||||||||||||||||
|
Loans:
|
||||||||||||||||||||
|
Commercial
|
316,763
|
313,443
|
311,491
|
314,273
|
302,753
|
|||||||||||||||
|
Residential mortgage loans
|
4,497,911
|
4,463,260
|
4,420,813
|
4,394,317
|
4,380,561
|
|||||||||||||||
|
Home equity line of credit
|
464,887
|
464,201
|
447,235
|
435,433
|
419,806
|
|||||||||||||||
|
Installment loans
|
10,617
|
11,556
|
12,231
|
12,678
|
13,017
|
|||||||||||||||
|
Loans, net of deferred net costs
|
5,290,178
|
5,252,460
|
5,191,770
|
5,156,701
|
5,116,137
|
|||||||||||||||
|
|
||||||||||||||||||||
|
Less: Allowance for credit losses on loans
|
52,994
|
52,205
|
51,891
|
51,265
|
50,606
|
|||||||||||||||
|
Net loans
|
5,237,184
|
5,200,255
|
5,139,879
|
5,105,436
|
5,065,531
|
|||||||||||||||
|
|
||||||||||||||||||||
|
Bank premises and equipment, net
|
41,071
|
40,707
|
39,718
|
38,129
|
37,178
|
|||||||||||||||
|
Operating lease right-of-use assets
|
33,305
|
33,638
|
35,291
|
36,322
|
34,968
|
|||||||||||||||
|
Other assets
|
116,767
|
114,315
|
107,514
|
106,894
|
108,681
|
|||||||||||||||
|
|
||||||||||||||||||||
|
Total assets
|
$
|
6,507,879
|
$
|
6,440,700
|
$
|
6,349,024
|
$
|
6,348,375
|
$
|
6,338,545
|
||||||||||
|
|
||||||||||||||||||||
|
LIABILITIES:
|
||||||||||||||||||||
|
Deposits:
|
||||||||||||||||||||
|
Demand
|
$
|
811,637
|
$
|
814,908
|
$
|
795,508
|
$
|
784,351
|
$
|
793,306
|
||||||||||
|
Interest-bearing checking
|
1,078,520
|
1,077,141
|
1,025,582
|
1,045,043
|
1,067,948
|
|||||||||||||||
|
Savings accounts
|
1,070,319
|
1,069,564
|
1,063,763
|
1,082,489
|
1,094,968
|
|||||||||||||||
|
Money market deposit accounts
|
442,760
|
457,389
|
455,488
|
467,087
|
478,872
|
|||||||||||||||
|
Time deposits
|
2,249,117
|
2,138,415
|
2,140,932
|
2,111,344
|
2,061,576
|
|||||||||||||||
|
Total deposits
|
5,652,353
|
5,557,417
|
5,481,273
|
5,490,314
|
5,496,670
|
|||||||||||||||
|
|
||||||||||||||||||||
|
Short-term borrowings
|
112,930
|
120,054
|
97,749
|
82,370
|
82,275
|
|||||||||||||||
|
Operating lease liabilities
|
35,920
|
36,391
|
38,180
|
39,350
|
38,324
|
|||||||||||||||
|
Accrued expenses and other liabilities
|
35,756
|
40,249
|
39,809
|
43,536
|
33,468
|
|||||||||||||||
|
|
||||||||||||||||||||
|
Total liabilities
|
5,836,959
|
5,754,111
|
5,657,011
|
5,655,570
|
5,650,737
|
|||||||||||||||
|
|
||||||||||||||||||||
|
SHAREHOLDERS’ EQUITY:
|
||||||||||||||||||||
|
Capital stock
|
20,119
|
20,119
|
20,103
|
20,097
|
20,097
|
|||||||||||||||
|
Surplus
|
260,808
|
260,333
|
259,980
|
259,490
|
259,182
|
|||||||||||||||
|
Undivided profits
|
489,540
|
479,996
|
471,314
|
462,158
|
453,931
|
|||||||||||||||
|
Accumulated other comprehensive income (loss), net of tax
|
8,241
|
10,024
|
2,955
|
1,663
|
(132
|
)
|
||||||||||||||
|
Treasury stock at cost
|
(107,788
|
)
|
(83,883
|
)
|
(62,339
|
)
|
(50,603
|
)
|
(45,270
|
)
|
||||||||||
|
|
||||||||||||||||||||
|
Total shareholders’ equity
|
670,920
|
686,589
|
692,013
|
692,805
|
687,808
|
|||||||||||||||
|
|
||||||||||||||||||||
|
Total liabilities and shareholders’ equity
|
$
|
6,507,879
|
$
|
6,440,700
|
$
|
6,349,024
|
$
|
6,348,375
|
$
|
6,338,545
|
||||||||||
|
|
||||||||||||||||||||
|
Outstanding shares (in thousands)
|
17,507
|
18,029
|
18,554
|
18,851
|
19,020
|
|||||||||||||||
Page | 7
NONPERFORMING ASSETS
(dollars in thousands)
(Unaudited)
|
3/31/2026
|
12/31/2025
|
9/30/2025
|
6/30/2025
|
3/31/2025
|
||||||||||||||||
|
Nonperforming Assets
|
||||||||||||||||||||
|
New York and other states*
|
||||||||||||||||||||
|
Loans in nonaccrual status:
|
||||||||||||||||||||
|
Commercial
|
$
|
1,968
|
$
|
1,990
|
$
|
292
|
$
|
684
|
$
|
688
|
||||||||||
|
Real estate mortgage - 1 to 4 family
|
15,212
|
14,584
|
14,568
|
14,048
|
14,795
|
|||||||||||||||
|
Installment
|
43
|
29
|
30
|
34
|
139
|
|||||||||||||||
|
Total nonperforming loans
|
17,223
|
16,603
|
14,890
|
14,766
|
15,622
|
|||||||||||||||
|
Other real estate owned
|
1,364
|
1,394
|
1,234
|
1,136
|
2,107
|
|||||||||||||||
|
Total nonperforming assets
|
$
|
18,587
|
$
|
17,997
|
$
|
16,124
|
$
|
15,902
|
$
|
17,729
|
||||||||||
|
Florida
|
||||||||||||||||||||
|
Loans in nonaccrual status:
|
||||||||||||||||||||
|
Commercial
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
||||||||||
|
Real estate mortgage - 1 to 4 family
|
4,222
|
4,047
|
3,574
|
3,132
|
3,135
|
|||||||||||||||
|
Installment
|
20
|
22
|
13
|
12
|
3
|
|||||||||||||||
|
Total nonperforming loans
|
4,242
|
4,069
|
3,587
|
3,144
|
3,138
|
|||||||||||||||
|
Other real estate owned
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||
|
Total nonperforming assets
|
$
|
4,242
|
$
|
4,069
|
$
|
3,587
|
$
|
3,144
|
$
|
3,138
|
||||||||||
|
Total
|
||||||||||||||||||||
|
Loans in nonaccrual status:
|
||||||||||||||||||||
|
Commercial
|
$
|
1,968
|
$
|
1,990
|
$
|
292
|
$
|
684
|
$
|
688
|
||||||||||
|
Real estate mortgage - 1 to 4 family
|
19,434
|
18,631
|
18,142
|
17,180
|
17,930
|
|||||||||||||||
|
Installment
|
63
|
51
|
43
|
46
|
142
|
|||||||||||||||
|
Total nonperforming loans
|
21,465
|
20,672
|
18,477
|
17,910
|
18,760
|
|||||||||||||||
|
Other real estate owned
|
1,364
|
1,394
|
1,234
|
1,136
|
2,107
|
|||||||||||||||
|
Total nonperforming assets
|
$
|
22,829
|
$
|
22,066
|
$
|
19,711
|
$
|
19,046
|
$
|
20,867
|
||||||||||
|
Quarterly Net (Recoveries) Chargeoffs
|
||||||||||||||||||||
|
New York and other states*
|
||||||||||||||||||||
|
Commercial
|
$
|
19
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
(3
|
)
|
|||||||||
|
Real estate mortgage - 1 to 4 family
|
(43
|
)
|
(33
|
)
|
(194
|
)
|
(121
|
)
|
41
|
|||||||||||
|
Installment
|
11
|
(13
|
)
|
(2
|
)
|
18
|
4
|
|||||||||||||
|
Total net chargeoffs (recoveries)
|
$
|
(13
|
)
|
$
|
(46
|
)
|
$
|
(196
|
)
|
$
|
(103
|
)
|
$
|
42
|
||||||
|
Florida
|
||||||||||||||||||||
|
Commercial
|
$
|
(40
|
)
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
(315
|
)
|
||||||||
|
Real estate mortgage - 1 to 4 family
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||
|
Installment
|
14
|
32
|
20
|
94
|
15
|
|||||||||||||||
|
Total net (recoveries) chargeoffs
|
$
|
(26
|
)
|
$
|
32
|
$
|
20
|
$
|
94
|
$
|
(300
|
)
|
||||||||
|
Total
|
||||||||||||||||||||
|
Commercial
|
$
|
(21
|
)
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
(318
|
)
|
||||||||
|
Real estate mortgage - 1 to 4 family
|
(43
|
)
|
(33
|
)
|
(194
|
)
|
(121
|
)
|
41
|
|||||||||||
|
Installment
|
25
|
19
|
18
|
112
|
19
|
|||||||||||||||
|
Total net (recoveries) chargeoffs
|
$
|
(39
|
)
|
$
|
(14
|
)
|
$
|
(176
|
)
|
$
|
(9
|
)
|
$
|
(258
|
)
|
|||||
|
Asset Quality Ratios
|
||||||||||||||||||||
|
Total nonperforming loans (1)
|
$
|
21,465
|
$
|
20,672
|
$
|
18,477
|
$
|
17,910
|
$
|
18,760
|
||||||||||
|
Total nonperforming assets (1)
|
22,829
|
22,066
|
19,711
|
19,046
|
20,867
|
|||||||||||||||
|
Total net (recoveries) chargeoffs (2)
|
(39
|
)
|
(14
|
)
|
(176
|
)
|
(9
|
)
|
(258
|
)
|
||||||||||
|
Allowance for credit losses on loans (1)
|
52,994
|
52,205
|
51,891
|
51,265
|
50,606
|
|||||||||||||||
|
Nonperforming loans to total loans
|
0.41
|
%
|
0.39
|
%
|
0.36
|
%
|
0.35
|
%
|
0.37
|
%
|
||||||||||
|
Nonperforming assets to total assets
|
0.35
|
%
|
0.34
|
%
|
0.31
|
%
|
0.30
|
%
|
0.33
|
%
|
||||||||||
|
Allowance for credit losses on loans to total loans
|
1.00
|
%
|
0.99
|
%
|
1.00
|
%
|
0.99
|
%
|
0.99
|
%
|
||||||||||
|
Coverage ratio (1)
|
246.9
|
%
|
252.5
|
%
|
280.8
|
%
|
286.2
|
%
|
269.8
|
%
|
||||||||||
|
Annualized net (recoveries) chargeoffs to average loans (2)
|
0.00
|
%
|
0.00
|
%
|
-0.01
|
%
|
0.00
|
%
|
-0.02
|
%
|
||||||||||
|
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
Page | 8
DISTRIBUTION OF ASSETS, LIABILITIES AND SHAREHOLDERS’ EQUITY -
INTEREST RATES AND INTEREST DIFFERENTIAL
(dollars in thousands)
|
(Unaudited)
|
Three months ended
|
Three months ended
|
||||||||||||||||||||||
|
March 31, 2026
|
March 31, 2025
|
|||||||||||||||||||||||
|
Average
|
Interest
|
Average
|
Average
|
Interest
|
Average
|
|||||||||||||||||||
|
Balance
|
Rate
|
Balance
|
Rate
|
|||||||||||||||||||||
|
Assets
|
||||||||||||||||||||||||
|
Securities available for sale:
|
||||||||||||||||||||||||
|
U. S. government sponsored enterprises
|
$
|
27,264
|
$
|
149
|
2.19
|
%
|
$
|
74,680
|
$
|
596
|
3.19
|
%
|
||||||||||||
|
Mortgage backed securities and collateralized mortgage obligations - residential
|
220,628
|
1,469
|
2.64
|
239,509
|
1,483
|
2.46
|
||||||||||||||||||
|
State and political subdivisions
|
9
|
0
|
6.77
|
18
|
0
|
6.77
|
||||||||||||||||||
|
Corporate bonds
|
63,528
|
694
|
4.37
|
40,019
|
260
|
2.60
|
||||||||||||||||||
|
Small Business Administration - guaranteed participation securities
|
11,740
|
63
|
2.14
|
15,003
|
81
|
2.15
|
||||||||||||||||||
|
Other
|
707
|
8
|
4.53
|
699
|
7
|
4.01
|
||||||||||||||||||
|
|
||||||||||||||||||||||||
|
Total securities available for sale
|
323,876
|
2,383
|
2.94
|
369,928
|
2,427
|
2.62
|
||||||||||||||||||
|
|
||||||||||||||||||||||||
|
Federal funds sold and other short-term Investments
|
669,961
|
6,105
|
3.70
|
613,646
|
6,732
|
4.45
|
||||||||||||||||||
|
|
||||||||||||||||||||||||
|
Held to maturity securities:
|
||||||||||||||||||||||||
|
Mortgage backed securities and collateralized mortgage obligations - residential
|
4,215
|
47
|
4.47
|
5,233
|
57
|
4.34
|
||||||||||||||||||
|
|
||||||||||||||||||||||||
|
Total held to maturity securities
|
4,215
|
47
|
4.47
|
5,233
|
57
|
4.34
|
||||||||||||||||||
|
|
||||||||||||||||||||||||
|
Federal Home Loan Bank stock
|
6,601
|
126
|
7.64
|
6,507
|
151
|
9.28
|
||||||||||||||||||
|
|
||||||||||||||||||||||||
|
Commercial loans
|
315,065
|
4,405
|
5.59
|
297,926
|
4,165
|
5.59
|
||||||||||||||||||
|
Residential mortgage loans
|
4,478,837
|
45,767
|
4.09
|
4,385,646
|
42,614
|
3.89
|
||||||||||||||||||
|
Home equity lines of credit
|
464,778
|
7,173
|
6.26
|
413,981
|
6,435
|
6.30
|
||||||||||||||||||
|
Installment loans
|
10,741
|
220
|
8.31
|
12,967
|
236
|
7.37
|
||||||||||||||||||
|
|
||||||||||||||||||||||||
|
Loans, net of unearned income
|
5,269,421
|
57,565
|
4.38
|
5,110,520
|
53,450
|
4.19
|
||||||||||||||||||
|
|
||||||||||||||||||||||||
|
Total interest earning assets
|
6,274,074
|
$
|
66,226
|
4.23
|
6,105,834
|
$
|
62,817
|
4.13
|
||||||||||||||||
|
|
||||||||||||||||||||||||
|
Allowance for credit losses on loans
|
(52,583
|
)
|
(50,475
|
)
|
||||||||||||||||||||
|
Cash & non-interest earning assets
|
222,763
|
201,154
|
||||||||||||||||||||||
|
Total assets
|
$
|
6,444,254
|
$
|
6,256,513
|
||||||||||||||||||||
|
Liabilities and shareholders’ equity
|
||||||||||||||||||||||||
|
Deposits:
|
||||||||||||||||||||||||
|
Interest bearing checking accounts
|
$
|
1,060,232
|
$
|
533
|
0.20
|
%
|
$
|
1,038,218
|
$
|
558
|
0.22
|
%
|
||||||||||||
|
Money market accounts
|
450,548
|
1,552
|
1.40
|
469,070
|
1,989
|
1.72
|
||||||||||||||||||
|
Savings
|
1,066,835
|
675
|
0.26
|
1,089,358
|
734
|
0.27
|
||||||||||||||||||
|
Time deposits
|
2,191,810
|
18,357
|
3.40
|
2,054,494
|
18,984
|
3.75
|
||||||||||||||||||
|
Total interest bearing deposits
|
4,769,425
|
21,117
|
1.80
|
4,651,140
|
22,265
|
1.94
|
||||||||||||||||||
|
Short-term borrowings
|
116,476
|
401
|
1.40
|
83,207
|
180
|
0.88
|
||||||||||||||||||
|
Total interest bearing liabilities
|
4,885,901
|
$
|
21,518
|
1.79
|
4,734,347
|
$
|
22,445
|
1.92
|
||||||||||||||||
|
Demand deposits
|
801,238
|
761,800
|
||||||||||||||||||||||
|
Other liabilities
|
73,700
|
78,748
|
||||||||||||||||||||||
|
Shareholders’ equity
|
683,415
|
681,618
|
||||||||||||||||||||||
|
Total liabilities and shareholders’ equity
|
$
|
6,444,254
|
$
|
6,256,513
|
||||||||||||||||||||
|
Net interest income
|
$
|
44,708
|
$
|
40,372
|
||||||||||||||||||||
|
Net interest spread
|
2.44
|
%
|
2.21
|
%
|
||||||||||||||||||||
|
Net interest margin (net interest income to total interest earning assets)
|
2.84
|
%
|
2.64
|
%
|
||||||||||||||||||||
Page | 9
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 fee 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 noninterest
expenses as determined under GAAP, excluding other real estate expense, net, by net interest income and total noninterest income as determined under GAAP, excluding net gains on equity securities (if applicable). 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)
|
3/31/2026
|
12/31/2025
|
3/31/2025
|
||||||||||||
|
Tangible Equity to Tangible Assets
|
||||||||||||||
|
Equity (GAAP)
|
$
|
670,920
|
$
|
686,589
|
$
|
687,808
|
||||||||
|
Less: Intangible assets
|
553
|
553
|
553
|
|||||||||||
|
Tangible equity (Non-GAAP)
|
$
|
670,367
|
$
|
686,036
|
$
|
687,255
|
||||||||
|
Total Assets (GAAP)
|
$
|
6,507,879
|
$
|
6,440,700
|
$
|
6,338,545
|
||||||||
|
Less: Intangible assets
|
553
|
553
|
553
|
|||||||||||
|
Tangible assets (Non-GAAP)
|
$
|
6,507,326
|
$
|
6,440,147
|
$
|
6,337,992
|
||||||||
|
Consolidated Equity to Assets (GAAP)
|
10.31
|
%
|
10.66
|
%
|
10.85
|
%
|
||||||||
|
Consolidated Tangible Equity to Tangible Assets (Non-GAAP)
|
10.30
|
%
|
10.65
|
%
|
10.84
|
%
|
||||||||
|
Three months ended
|
||||||||||||||
|
Efficiency and Adjusted Efficiency Ratios
|
3/31/2026
|
12/31/2025
|
3/31/2025
|
|||||||||||
|
Net interest income (GAAP)
|
A
|
$
|
44,708
|
$
|
43,735
|
$
|
40,373
|
|||||||
|
Non-interest income (GAAP)
|
B
|
4,841
|
4,430
|
4,974
|
||||||||||
|
Revenue used for efficiency ratio (Non-GAAP)
|
C
|
$
|
49,549
|
$
|
48,165
|
$
|
45,347
|
|||||||
|
Total noninterest expense (GAAP)
|
D
|
$
|
26,982
|
$
|
26,710
|
$
|
26,329
|
|||||||
|
Less: Other real estate expense, net
|
E
|
50
|
161
|
28
|
||||||||||
|
Expense used for efficiency ratio (Non-GAAP)
|
F
|
$
|
26,932
|
$
|
26,549
|
$
|
26,301
|
|||||||
|
Efficiency Ratio (GAAP)
|
D/(A+B)
|
54.46
|
%
|
55.46
|
%
|
58.06
|
%
|
|||||||
|
Adjusted Efficiency Ratio (Non-GAAP)
|
F/C
|
54.35
|
%
|
55.12
|
%
|
58.00
|
%
|
|||||||
Page | 10
FAQ
How did TrustCo Bank Corp (TRST) perform in Q1 2026?
TrustCo Bank Corp NY reported Q1 2026 net income of $16.3 million, up from $14.3 million a year earlier. Diluted EPS rose to $0.91 from $0.75, supported by higher net interest income and improved net interest margin driven by loan repricing and disciplined deposit pricing.
What happened to TrustCo Bank Corp (TRST) net interest income and margin?
Net interest income for Q1 2026 was $44.7 million, a 10.7% year-over-year increase. Net interest margin expanded to 2.84% from 2.64%, as higher asset yields and effective deposit pricing more than offset competitive pressures on deposit costs and supported overall profitability.
How are TrustCo Bank Corp (TRST) loans and deposits trending?
Average loans in Q1 2026 increased by $158.9 million, or 3.1%, with growth across residential mortgages, home equity credit lines, and commercial loans. Average deposits rose $157.7 million, or 2.9%, aided by time deposits, interest-bearing checking, and demand deposits supporting ongoing lending activity.
What is the credit quality position of TrustCo Bank Corp (TRST)?
Credit quality remains solid, with nonperforming loans at $21.5 million, or 0.41% of total loans, as of March 31, 2026. The allowance for credit losses on loans was $53.0 million, representing 1.00% of total loans and a coverage ratio of 246.9% of nonperforming loans.
What are TrustCo Bank Corp (TRST) key profitability and capital ratios?
For Q1 2026, TrustCo recorded a return on average assets of 1.02% and return on average equity of 9.66%. The efficiency ratio was 54.46%, while the consolidated equity-to-assets ratio stood at 10.31%, and book value per share reached $38.32.
What is the size and footprint of TrustCo Bank Corp (TRST)?
As of March 31, 2026, TrustCo Bank Corp NY had $6.5 billion in assets and operated 133 full-service banking offices across New York, New Jersey, Vermont, Massachusetts, and Florida, complemented by a wealth management department offering investment and trust services.