TrustCo Reports First Quarter 2026 Net Income of $16.3 Million; Notes Loan Portfolio Repricing

Investor Search Entire IR Site Documents Press Releases Press Release Company Release - 4/21/2026 4:00 PM ET Executive Snapshot: Financial results: 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 millionDiluted earnings per share of $0.91 increased 21.3% compared to $0.75Net 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: Book value per share as of March 31, 2026 was $38.32, up from $36.16 as of March 31, 2025More 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 2026On pace to complete the repurchase of two million shares or 11.1% of TrustCo common stock during 2026 GLENVILLE, N.Y., April 21, 2026 (GLOBE NEWSWIRE) -- 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. 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. 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. 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. 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) 2.5x 2.5x 2.7x (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. 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 3/31/2025Interest 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 CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (dollars in thousands)(Unaudited) 3/31/2026 12/31/2025 9/30/2025 6/30/2025 3/31/2025ASSETS: 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 NONPERFORMING ASSETS (dollars in thousands)(Unaudited) 3/31/202612/31/20259/30/20256/30/20253/31/2025Nonperforming 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/AN/AN/AN/AN/A * Includes New York, New Jersey, Vermont and Massachusetts.(1) At period-end(2) For the three-month period endedINTEREST RATES AND INTEREST DIFFERENTIAL (dollars in thousands) (Unaudited)Three months ended Three months ended March 31, 2026 March 31, 2025 Average InterestAverage Average InterestAverage Balance Rate Balance Rate Assets Securities available for sale: U. S. government sponsored enterprises$27,264 $1492.19% $74,680 $5963.19%Mortgage backed securities and collateralized mortgage obligations - residential 220,628 1,4692.64 239,509 1,4832.46 State and political subdivisions 9 06.77 18 06.77 Corporate bonds 63,528 6944.37 40,019 2602.60 Small Business Administration - guaranteed participation securities 11,740 632.14 15,003 812.15 Other 707 84.53 699 74.01 Total securities available for sale 323,876 2,3832.94 369,928 2,4272.62 Federal funds sold and other short-term Investments 669,961 6,1053.70 613,646 6,7324.45 Held to maturity securities: Mortgage backed securities and collateralized mortgage obligations - residential 4,215 474.47 5,233 574.34 Total held to maturity securities 4,215 474.47 5,233 574.34 Federal Home Loan Bank stock 6,601 1267.64 6,507 1519.28 Commercial loans 315,065 4,4055.59 297,926 4,1655.59 Residential mortgage loans 4,478,837 45,7674.09 4,385,646 42,6143.89 Home equity lines of credit 464,778 7,1736.26 413,981 6,4356.30 Installment loans 10,741 2208.31 12,967 2367.37 Loans, net of unearned income 5,269,421 57,5654.38 5,110,520 53,4504.19 Total interest earning assets 6,274,074 $66,2264.23 6,105,834 $62,8174.13 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 $5330.20% $1,038,218 $5580.22%Money market accounts 450,548 1,5521.40 469,070 1,9891.72 Savings 1,066,835 6750.26 1,089,358 7340.27 Time deposits 2,191,810 18,3573.40 2,054,494 18,9843.75 Total interest bearing deposits 4,769,425 21,1171.80 4,651,140 22,2651.94 Short-term borrowings 116,476 4011.40 83,207 1800.88 Total interest bearing liabilities 4,885,901 $21,5181.79 4,734,347 $22,4451.92 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% 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 3/31/2025Tangible 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 endedEfficiency 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, netE 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%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 Source: TrustCo Bank Corp NY