TrustCo Reports 2025 Net Income of $61.1 Million for the Year; Posts Total Shareholder Return Three Times That Of Peers

Investor Search Entire IR Site Documents Press Releases Press Release Company Release - 1/21/2026 4:00 PM ET Executive Snapshot: Financial results: Key metrics for the fourth quarter 2025 compared to the fourth quarter of 2024: Net income of $15.6 million increased 38.0% compared to $11.3 millionDiluted earnings per share of $0.85 increased 44.1% compared to $0.59Net interest margin of 2.82%, up 22 basis points from 2.60%Return on Average Assets of 0.97%, up 32.9% from 0.73%Return on Average Equity of 8.99%, up 34.2% from 6.70%Net interest income of $43.7 million, up 12.4% from $38.9 million Capital position and Stock Repurchase Program: Book value per share as of December 31, 2025 was $38.08, up from $35.56 as of December 31, 2024One million shares, or 5.3%, of TrustCo common stock were purchased under the Stock Repurchase Program during 2025, of which 533 thousand shares or 2.9% were purchased in the fourth quarterTwo million shares, or 11.1%, of TrustCo common stock authorized for purchase under an additional Stock Repurchase Program announced for 2026 GLENVILLE, N.Y., Jan. 21, 2026 (GLOBE NEWSWIRE) -- TrustCo Bank Corp NY (TrustCo, NASDAQ: TRST) today announced strong financial results for the fourth quarter of 2025 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 December 31, 2025, net interest income increased 12.4% year over year to $43.7 million, supported by the ongoing asset repricing across our loan portfolio at higher yields and effective management of interest expense, which together more than offset competitive pressures on deposit pricing. For the three months ended December 31, 2025, net interest margin expanded to 2.82% from 2.60% in the prior year period, driven by enhanced asset yields and disciplined deposit pricing strategies. This resulted in fourth quarter 2025 net income of $15.6 million, or $0.85 diluted earnings per share, compared to net income of $11.3 million or $0.59 diluted earnings per share for the fourth quarter 2024; and net income of $61.1 million or $3.25 diluted earnings per share for the year ended December 31, 2025, compared to net income of $48.8 million or $2.57 diluted earnings per share for the year ended December 31, 2024. Loan balances expanded throughout the quarter, with total average loans increasing $126.8 million for the fourth quarter 2025 over the same period in 2024. Following this period of sustained growth, TrustCo remains confident in the quality of its loan portfolio amid broader market concerns. 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, “The results announced today are absolutely stellar. Our team performed extraordinarily well on all levels. We have long-served Trustco Bank customers in a manner that has generated trust and earned loyalty. With this foundation, our retail area has been able to control cost of funds, which, in turn, expanded margin. The lenders finished strong, with the best quarterly loan growth of the year. The management team successfully executed a million-share buyback and then immediately sought and received regulatory approval for a further two-million share buyback, which we then fully funded. Thus, between what we have done, and what we are likely to do, we will have re-purchased more than 16% of the outstanding shares of our stock over the two-year period – and may not be done. Perhaps even more significantly, we grew total shareholder return 29% over the year, outpacing a major regional bank index and our proxy peers by a factor of more than three times. With our capital position still strong, and our credit quality remaining exceptional, I look forward to seeing our team deliver even greater value to our shareholders in 2026 and beyond.” Details As the year came to an end, we 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 bond 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 $43.7 million for the fourth quarter 2025, an increase of $4.8 million, or 12.4%, compared to the fourth quarter of 2024, driven by loan growth at higher interest rates, and an increase in interest income on federal funds sold and other short-term investments. The net interest margin for the fourth quarter of 2025 was 2.82%, up 22 basis points from 2.60% in the fourth quarter of 2024. The yield on interest earnings assets increased to 4.24% in the fourth quarter of 2025, up 12 basis points from 4.12% in the fourth quarter of 2024. The cost of interest bearing liabilities decreased to 1.84% in the fourth quarter 2025, down from 1.97% in the fourth quarter 2024. Average loans were up $126.8 million, or 2.5%, in the fourth quarter of 2025 over the same period in 2024. Average residential loans and Home Equity Credit Lines (HECLs), our primary lending focus, were up $50.6 million, or 1.2%, and $54.1 million, or 13.5%, respectively, in the fourth quarter 2025 over the same period in 2024. Average commercial loans also increased $24.5 million, or 8.6%, in the fourth quarter 2025 over the same period in 2024. We believe that this upward trend reflects improving economic confidence among borrowers, strong credit quality, and the Bank’s focus on relationship lending. The consistent growth in the loan portfolio will likely enhance net interest income in the quarters ahead. Average deposits were up $208.0 million, or 3.9%, for the fourth quarter of 2025 compared to the fourth quarter 2024, 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 fourth quarter of 2025, the Bank has remained focused on capital deployment and allocation, guided by a disciplined framework, with share repurchases serving 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 and twelve months ended December 31, 2025, TrustCo repurchased 533 thousand shares, or 2.9%, and one million shares, or 5.3%, respectively, of TrustCo’s outstanding common stock under the previously announced stock repurchase program. As a result, we have completed the repurchase of the maximum number of shares authorized for repurchase under the program that was authorized in the first quarter of 2025. Consequently, during the fourth quarter, the Company announced another stock repurchase program which allows the Company to repurchase up to two million shares, or 11.1%, of TrustCo common stock over the next year. 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 December 31, 2025, our equity to asset ratio was 10.66%, compared to 10.84% as of December 31, 2024. Book value per share as of December 31, 2025 was $38.08, up 7.1% compared to $35.56 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 $400 thousand in the fourth quarter of 2025, flat compared to $400 thousand for the same period in 2024. For the three months ended December 31, 2025 the provision for credit losses was the result of a provision for credit losses on loans of $300 thousand and a provision for credit losses on unfunded commitments of $100 thousand. The ratio of allowance for credit losses on loans to total loans was 0.99% as of both December 31, 2025 and 2024. The allowance for credit losses on loans was $52.2 million as of December 31, 2025, compared to $50.2 million as of December 31, 2024. Nonperforming loans (NPLs) were $20.7 million as of December 31, 2025, compared to $18.8 million as of December 31, 2024. NPLs were 0.39% and 0.37% of total loans as of December 31, 2025 and 2024, respectively. The coverage ratio, or allowance for credit losses on loans to NPLs, was 252.5% as of December 31, 2025, compared to 267.3% as of December 31, 2024. Nonperforming assets (NPAs) were $22.1 million as of December 31, 2025, compared to $21.0 million as of December 31, 2024. While nonperforming loans increased modestly during the year, asset quality metrics remain stable and well covered by reserves, reflecting the Bank’s conservative underwriting standards. A conference call to discuss fourth quarter 2025 results will be held at 9:00 a.m. Eastern Time on January 22, 2026. Those wishing to participate in the call may dial toll-free for the United States at 1-833-470-1428, and for Canada at 1-833-950-0062, Access code 774913. A replay of the call will be available for thirty days by dialing toll-free for the United States at 1-866-813-9403, Access code 268454. The call will also be audio webcast at https://events.q4inc.com/attendee/175579250, and will be available for one year. About TrustCo Bank Corp NY TrustCo Bank Corp NY is a $6.4 billion savings and loan holding company and through its subsidiary, Trustco Bank, operated 134 offices in New York, New Jersey, Vermont, Massachusetts, and Florida as of December 31, 2025. 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 our loan portfolio’s growth on net interest income; the impact of the continued repricing of our loan and investment portfolios on 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; 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, as well as diversity, equity, and inclusion-related 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, as well as volatility in financial markets; the soundness of other financial institutions; U.S. government shutdowns, credit rating downgrades, or failure to increase the debt ceiling; 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; 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 fourth-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 fourth 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; 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, 2024, our Quarterly Reports on Form 10-Q for the quarters ended March 31, 2025, June 30, 2025, and September 30, 2025, 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. FINANCIAL HIGHLIGHTS (dollars in thousands, except per share data) (Unaudited) Three months ended 12/31/2025 9/30/2025 12/31/2024 Summary of operations Net interest income $ 43,735 $ 43,119 $ 38,902 Provision for credit losses 400 250 400 Noninterest income 4,430 4,689 4,409 Noninterest expense 26,710 26,242 28,165 Net income 15,565 16,258 11,281 Per share Net income per share: - Basic $ 0.85 $ 0.87 $ 0.59 - Diluted 0.85 0.86 0.59 Cash dividends 0.38 0.38 0.36 Book value at period end 38.08 37.30 35.56 Market price at period end 41.33 36.30 33.31 At period end Full time equivalent employees 743 738 737 Full service banking offices 134 136 136 Performance ratios Return on average assets 0.97%1.02%0.73 Return on average equity 8.99 9.29 6.70 Efficiency ratio (GAAP) 55.46 54.89 65.03 Adjusted Efficiency ratio (1) 55.12 54.87 63.93 Net interest spread 2.40 2.40 2.15 Net interest margin 2.82 2.82 2.60 Dividend payout ratio 44.14 43.68 60.70 Capital ratios at period end Consolidated equity to assets (GAAP) 10.66%10.90%10.84 Consolidated tangible equity to tangible assets (1) 10.65%10.89%10.83 Asset quality analysis at period end Nonperforming loans to total loans 0.39%0.36%0.37 Nonperforming assets to total assets 0.34 0.31 0.34 Allowance for credit losses on loans to total loans 0.99 1.00 0.99 Coverage ratio (2) 2.5x 2.8x 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. FINANCIAL HIGHLIGHTS, Continued (dollars in thousands, except per share data) (Unaudited) Year Ended 12/31/25 12/31/24 Summary of operations Net interest income $ 168,973 $ 151,939 Provision for credit losses 1,600 2,000 Net gains on equity securities - 1,383 Noninterest income, excluding net gains on equity securities 18,945 18,451 Noninterest expense 105,504 105,727 Net income 61,137 48,833 Per share Net income per share: - Basic $ 3.26 $ 2.57 - Diluted 3.25 2.57 Cash dividends 1.48 1.44 Book value at period end 38.08 35.56 Market price at period end 41.33 33.31 Performance ratios Return on average assets 0.97%0.80% Return on average equity 8.88 7.43 Efficiency ratio (GAAP) 56.14 61.55 Adjusted Efficiency ratio (1) 55.76 61.60 Net interest spread 2.31 2.10 Net interest margin 2.74 2.54 Dividend payout ratio 45.19 56.09 (1) Non-GAAP Financial Measure, see Non-GAAP Financial Measures Reconciliation. CONSOLIDATED STATEMENTS OF INCOME (dollars in thousands, except per share data) (Unaudited) Three months ended 12/31/2025 9/30/2025 6/30/2025 3/31/2025 12/31/2024Interest and dividend income: Interest and fees on loans $56,886 $55,953 $54,557 $53,450 $53,024Interest and dividends on securities available for sale: U. S. government sponsored enterprises 350 599 614 596 680State and political subdivisions - 1 - - -Mortgage-backed securities and collateralized mortgage obligations - residential 1,490 1,583 1,613 1,483 1,418Corporate bonds 536 265 210 260 358Small Business Administration - guaranteed participation securities 68 72 75 81 84Other securities 8 7 8 7 6Total interest and dividends on securities available for sale 2,452 2,527 2,520 2,427 2,546 Interest on held to maturity securities: Mortgage-backed securities and collateralized mortgage obligations - residential 50 52 54 57 59Total interest on held to maturity securities 50 52 54 57 59 Federal Home Loan Bank stock 126 125 129 151 152 Interest on federal funds sold and other short-term investments 6,580 7,376 7,212 6,732 6,128Total interest income 66,094 66,033 64,472 62,817 61,909 Interest expense: Interest on deposits: Interest-bearing checking 501 483 536 558 397Savings 715 741 733 734 719Money market deposit accounts 1,810 2,065 2,086 1,989 2,024Time deposits 18,993 19,427 19,195 18,983 19,680Interest on short-term borrowings 340 198 176 180 187Total interest expense 22,359 22,914 22,726 22,444 23,007 Net interest income 43,735 43,119 41,746 40,373 38,902 Less: Provision for credit losses 400 250 650 300 400Net interest income after provision for credit losses 43,335 42,869 41,096 40,073 38,502 Noninterest income: Trustco Financial Services income 1,950 1,967 1,818 2,120 1,778Fees for services to customers 2,192 2,429 2,266 2,645 2,226Other 288 293 768 209 405Total noninterest income 4,430 4,689 4,852 4,974 4,409 Noninterest expenses: Salaries and employee benefits 12,242 12,727 11,876 11,894 12,068Net occupancy expense 4,592 4,470 4,518 4,554 4,563Equipment expense 2,219 1,938 1,918 1,944 2,404Professional services 1,083 1,571 1,886 1,726 1,782Outsourced services 2,100 2,492 2,460 2,700 3,051Advertising expense 629 290 304 361 590FDIC and other insurance 1,135 1,052 1,136 1,188 1,113Other real estate expense, net 161 8 522 28 476Other 2,549 1,694 1,603 1,934 2,118Total noninterest expenses 26,710 26,242 26,223 26,329 28,165 Income before taxes 21,055 21,316 19,725 18,718 14,746Income taxes 5,490 5,058 4,686 4,443 3,465 Net income $15,565 $16,258 $15,039 $14,275 $11,281 Net income per common share: - Basic $0.85 $0.87 $0.79 $0.75 $0.59 - Diluted 0.85 0.86 0.79 0.75 0.59 Weighted average basic shares (in thousands) 18,275 18,755 18,965 19,020 19,015Weighted average diluted shares (in thousands) 18,327 18,805 18,994 19,044 19,045 CONSOLIDATED STATEMENTS OF INCOME, Continued (dollars in thousands, except per share data)(Unaudited) Year Ended 12/31/25 12/31/24Interest and dividend income: Interest and fees on loans$220,846 $ 205,600Interest and dividends on securities available for sale: U. S. government sponsored enterprises 2,159 3,213State and political subdivisions 1 1Mortgage-backed securities and collateralized mortgage obligations - residential 6,169 5,760Corporate bonds 1,271 1,557Small Business Administration - guaranteed participation securities 296 368Other securities 30 13Total interest and dividends on securities available for sale 9,926 10,912 Interest on held to maturity securities: Mortgage-backed securities-residential 213 254Total interest on held to maturity securities 213 254 Federal Home Loan Bank stock 531 604 Interest on federal funds sold and other short-term investments 27,900 25,946Total interest income 259,416 243,316 Interest expense: Interest on deposits: Interest-bearing checking 2,078 1,236Savings 2,923 2,876Money market deposit accounts 7,950 8,748Time deposits 76,598 77,726Interest on short-term borrowings 894 791Total interest expense 90,443 91,377 Net interest income 168,973 151,939 Less: Provision for credit losses 1,600 2,000Net interest income after provision for credit losses 167,373 149,939 Noninterest income: Trustco Financial Services income 7,855 7,247Fees for services to customers 9,532 9,852Net gains on equity securities - 1,383Other 1,558 1,352Total noninterest income 18,945 19,834 Noninterest expenses: Salaries and employee benefits 48,739 48,149Net occupancy expense 18,134 17,820Equipment expense 8,019 7,889Professional services 6,266 6,675Outsourced services 9,752 10,858Advertising expense 1,584 1,803FDIC and other insurance 4,511 4,116Other real estate expense, net 719 770Other 7,780 7,647Total noninterest expenses 105,504 105,727 Income before taxes 80,814 64,046Income taxes 19,677 15,213 Net income$61,137 $ 48,833 Net income per common share: - Basic$3.26 $ 2.57 - Diluted 3.25 2.57 Weighted average basic shares (in thousands) 18,752 19,018Weighted average diluted shares (in thousands) 18,790 19,037 CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (dollars in thousands)(Unaudited) 12/31/2025 9/30/2025 6/30/2025 3/31/2025 12/31/2024ASSETS: Cash and due from banks $50,569 $42,026 $45,218 $48,782 $47,364Federal funds sold and other short term investments 679,858 653,530 668,373 707,355 594,448Total cash and cash equivalents 730,427 695,556 713,591 756,137 641,812 Securities available for sale: U. S. government sponsored enterprises 31,772 51,557 71,241 65,942 85,617States and political subdivisions 9 18 18 18 18Mortgage-backed securities and collateralized mortgage obligations - residential 206,290 215,466 221,721 219,333 213,128Small Business Administration - guaranteed participation securities 11,710 12,330 12,945 13,683 14,141Corporate bonds 59,932 39,800 29,943 24,779 44,581Other securities 705 701 698 698 700Total securities available for sale 310,418 319,872 336,566 324,453 358,185 Held to maturity securities: Mortgage-backed securities and collateralized mortgage obligations-residential 4,339 4,593 4,836 5,090 5,365Total held to maturity securities 4,339 4,593 4,836 5,090 5,365 Federal Reserve Bank and Federal Home Loan Bank stock 6,601 6,601 6,601 6,507 6,507 Loans: Commercial 313,443 311,491 314,273 302,753 286,857Residential mortgage loans 4,463,260 4,420,813 4,394,317 4,380,561 4,388,302Home equity line of credit 464,201 447,235 435,433 419,806 409,261Installment loans 11,556 12,231 12,678 13,017 13,638Loans, net of deferred net costs 5,252,460 5,191,770 5,156,701 5,116,137 5,098,058 Less: Allowance for credit losses on loans 52,205 51,891 51,265 50,606 50,248Net loans 5,200,255 5,139,879 5,105,436 5,065,531 5,047,810 Bank premises and equipment, net 40,707 39,718 38,129 37,178 33,782Operating lease right-of-use assets 33,638 35,291 36,322 34,968 36,627Other assets 114,315 107,514 106,894 108,681 108,656 Total assets $6,440,700 $6,349,024 $6,348,375$6,338,545 $6,238,744 LIABILITIES: Deposits: Demand $814,908 $795,508 $784,351 $793,306 $762,101Interest-bearing checking 1,077,141 1,025,582 1,045,043 1,067,948 1,027,540Savings accounts 1,069,564 1,063,763 1,082,489 1,094,968 1,086,534Money market deposit accounts 457,389 455,488 467,087 478,872 465,049Time deposits 2,138,415 2,140,932 2,111,344 2,061,576 2,049,759Total deposits 5,557,417 5,481,273 5,490,314 5,496,670 5,390,983 Short-term borrowings 120,054 97,749 82,370 82,275 84,781Operating lease liabilities 36,391 38,180 39,350 38,324 40,159Accrued expenses and other liabilities 40,249 39,809 43,536 33,468 46,478 Total liabilities 5,754,111 5,657,011 5,655,570 5,650,737 5,562,401 SHAREHOLDERS' EQUITY: Capital stock 20,119 20,103 20,097 20,097 20,097Surplus 260,333 259,980 259,490 259,182 258,874Undivided profits 479,996 471,314 462,158 453,931 446,503Accumulated other comprehensive income (loss), net of tax 10,024 2,955 1,663 (132) (3,861)Treasury stock at cost (83,883) (62,339) (50,603) (45,270) (45,270) Total shareholders' equity 686,589 692,013 692,805 687,808 676,343 Total liabilities and shareholders' equity $6,440,700 $6,349,024 $6,348,375$6,338,545 $6,238,744 Outstanding shares (in thousands) 18,029 18,554 18,851 19,020 19,020 NONPERFORMING ASSETS (dollars in thousands)(Unaudited) 12/31/20259/30/20256/30/20253/31/202512/31/2024Nonperforming Assets New York and other states* Loans in nonaccrual status: Commercial $1,990 $292 $684 $688 $343 Real estate mortgage - 1 to 4 family 14,584 14,568 14,048 14,795 14,671 Installment 29 30 34 139 108 Total nonperforming loans 16,603 14,890 14,766 15,622 15,122 Other real estate owned 1,394 1,234 1,136 2,107 2,175 Total nonperforming assets $17,997 $16,124 $15,902 $17,729 $17,297 Florida Loans in nonaccrual status: Commercial $- $- $- $- $- Real estate mortgage - 1 to 4 family 4,047 3,574 3,132 3,135 3,656 Installment 22 13 12 3 22 Total nonperforming loans 4,069 3,587 3,144 3,138 3,678 Other real estate owned - - - - - Total nonperforming assets $4,069 $3,587 $3,144 $3,138 $3,678 Total Loans in nonaccrual status: Commercial $1,990 $292 $684 $688 $343 Real estate mortgage - 1 to 4 family 18,631 18,142 17,180 17,930 18,327 Installment 51 43 46 142 130 Total nonperforming loans 20,672 18,477 17,910 18,760 18,800 Other real estate owned 1,394 1,234 1,136 2,107 2,175 Total nonperforming assets $22,066 $19,711 $19,046 $20,867 $20,975 Quarterly Net (Recoveries) Chargeoffs New York and other states* Commercial $- $- $- $(3)$62 Real estate mortgage - 1 to 4 family (33) (194) (121) 41 (316)Installment (13) (2) 18 4 41 Total net chargeoffs (recoveries) $(46)$(196)$(103)$42 $(213) Florida Commercial $- $- $- $(315)$314 Real estate mortgage - 1 to 4 family - - - - - Installment 32 20 94 15 1 Total net (recoveries) chargeoffs $32 $20 $94 $(300)$315 Total Commercial $- $- $- $(318)$376 Real estate mortgage - 1 to 4 family (33) (194) (121) 41 (316)Installment 19 18 112 19 42 Total net (recoveries) chargeoffs $(14)$(176)$(9)$(258)$102 Asset Quality Ratios Total nonperforming loans (1) $20,672 $18,477 $17,910 $18,760 $18,800 Total nonperforming assets (1) 22,066 19,711 19,046 20,867 20,975 Total net (recoveries) chargeoffs (2) (14) (176) (9) (258) 102 Allowance for credit losses on loans (1) 52,205 51,891 51,265 50,606 50,248 Nonperforming loans to total loans 0.39% 0.36% 0.35% 0.37% 0.37%Nonperforming assets to total assets 0.34% 0.31% 0.30% 0.33% 0.34%Allowance for credit losses on loans to total loans 0.99% 1.00% 0.99% 0.99% 0.99%Coverage ratio (1) 252.5% 280.8% 286.2% 269.8% 267.3%Annualized net (recoveries) chargeoffs to average loans (2) 0.00% -0.01% 0.00% -0.02% 0.01%Allowance for credit losses on loans to annualized net chargeoffs (2) N/AN/AN/AN/A123.2x * 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 December 31, 2025 December 31, 2024 Average InterestAverage Average InterestAverage Balance Rate Balance Rate Assets Securities available for sale: U. S. government sponsored enterprises $48,668 $3502.88% $88,125 $6803.09%Mortgage backed securities and collateralized mortgage obligations - residential 226,934 1,4902.60 238,771 1,4182.36 State and political subdivisions 15 06.71 23 06.35 Corporate bonds 46,819 5364.58 50,025 3582.86 Small Business Administration - guaranteed participation securities 12,621 682.15 15,693 842.15 Other 702 84.56 700 63.43 Total securities available for sale 335,759 2,4522.92 393,337 2,5462.59 Federal funds sold and other short-term Investments 656,528 6,5803.98 504,458 6,1284.83 Held to maturity securities: Mortgage backed securities and collateralized mortgage obligations - residential 4,467 504.45 5,501 594.31 Total held to maturity securities 4,467 504.45 5,501 594.31 Federal Home Loan Bank stock 6,601 1267.64 6,507 1529.34 Commercial loans 309,833 4,2955.54 285,303 3,8695.42 Residential mortgage loans 4,439,133 45,0244.06 4,388,567 42,4863.87 Home equity lines of credit 455,713 7,3446.39 401,636 6,4226.36 Installment loans 11,362 2237.78 13,741 2477.14 Loans, net of unearned income 5,216,041 56,8864.36 5,089,247 53,0244.16 Total interest earning assets 6,219,396 $66,0944.24 5,999,050 $61,9094.12 Allowance for credit losses on loans (52,249) (50,342) Cash & non-interest earning assets 213,211 190,341 Total assets $6,380,358 $6,139,049 Liabilities and shareholders' equity Deposits: Interest bearing checking accounts $1,035,796 $5010.19% $994,786 $3970.16%Money market accounts 456,240 1,8101.57 469,784 2,0241.71 Savings 1,063,516 7150.27 1,085,952 7190.26 Time deposits 2,153,365 18,9933.50 2,000,563 19,6803.91 Total interest bearing deposits 4,708,917 22,0191.86 4,551,085 22,8201.99 Short-term borrowings 107,579 3401.25 84,136 1870.88 Total interest bearing liabilities 4,816,496 $22,3591.84 4,635,221 $23,0071.97 Demand deposits 801,944 751,747 Other liabilities 75,291 82,738 Shareholders' equity 686,627 669,343 Total liabilities and shareholders' equity $6,380,358 $6,139,049 Net interest income $43,735 $38,902 Net interest spread 2.40% 2.15% Net interest margin (net interest income to total interest earning assets) 2.82% 2.60%DISTRIBUTION OF ASSETS, LIABILITIES AND SHAREHOLDERS' EQUITY -INTEREST RATES AND INTEREST DIFFERENTIAL, Continued (dollars in thousands) (Unaudited) Year Ended Year Ended December 31, 2025 December 31, 2024 Average InterestAverage Average InterestAverage Balance Rate Balance Rate Assets Securities available for sale: U. S. government sponsored enterprises $66,529 2,1593.25% $105,729 3,2133.04%Mortgage backed securities and collateralized mortgage obligations - residential 237,037 6,1692.60 247,466 5,7602.33 State and political subdivisions 17 16.75 25 16.69 Corporate bonds 34,745 1,2713.66 58,447 1,5572.66 Small Business Administration - guaranteed participation securities 13,772 2962.15 17,003 3682.17 Other 699 304.29 698 131.86 Total securities available for sale 352,799 9,9262.81 429,368 10,9122.54 Federal funds sold and other short-term Investments 645,154 27,9004.32 493,546 25,9465.26 Held to maturity securities: Mortgage backed securities and collateralized mortgage obligations - residential 4,845 2134.39 5,916 2544.29 Total held to maturity securities 4,845 2134.39 5,916 2544.29 Federal Home Loan Bank stock 6,575 5318.08 6,389 6049.45 Commercial loans 306,997 17,1465.59 280,566 15,1015.38 Residential mortgage loans 4,405,426 174,9663.97 4,370,582 165,5333.79 Home equity lines of credit 434,740 27,8236.40 374,841 23,9446.39 Installment loans 12,174 9117.49 14,926 1,0226.85 Loans, net of unearned income 5,159,337 220,8464.28 5,040,915 205,6004.08 Total interest earning assets 6,168,710 259,4164.20 5,976,134 243,3164.07 Allowance for credit losses on loans (51,303) (49,648) Cash & non-interest earning assets 206,732 188,748 Total assets $6,324,139 $6,115,234 Liabilities and shareholders' equity Deposits: Interest bearing checking accounts $1,037,072 2,0780.20% $998,501 1,2360.12%Money market accounts 465,077 7,9501.71 509,409 8,7481.72 Savings 1,079,405 2,9230.27 1,128,190 2,8760.25 Time deposits 2,104,815 76,5983.64 1,911,116 77,7264.07 Total interest bearing deposits 4,686,369 89,5491.91 4,547,216 90,5861.99 Short-term borrowings 89,816 8940.99 89,707 7910.88 Total interest bearing liabilities 4,776,185 90,4431.89 4,636,923 91,3771.97 Demand deposits 783,521 738,816 Other liabilities 76,094 82,398 Shareholders' equity 688,339 657,097 Total liabilities and shareholders' equity $6,324,139 $6,115,234 Net interest income 168,973 151,939 Net interest spread 2.31% 2.10% Net interest margin (net interest income to total interest earning assets) 2.74% 2.54%  Non-GAAP Financial Measures Reconciliation Tangible book value per share is a non-GAAP financial measure derived from GAAP-based amounts. We calculate tangible book value by excluding the balance of intangible assets from total shareholders’ equity divided by shares outstanding. 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 exclusive of changes in intangible assets. 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 measures 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 by the sum of net interest income and total non-interest income. 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. 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 book value to shares outstanding, tangible equity as a percentage of tangible assets, and efficiency ratio to the most directly comparable GAAP measures is set forth below. NON-GAAP FINANCIAL MEASURES RECONCILIATION (dollars in thousands) (Unaudited) 12/31/20259/30/202512/31/2024 Tangible Book Value Per Share Equity (GAAP) $686,589 $692,013 $676,343 Less: Intangible assets 553 553 553 Tangible equity (Non-GAAP) $686,036 $691,460 $675,790 Shares outstanding 18,029 18,554 19,020 Tangible book value per share (Non-GAAP) 38.05 37.27 35.53 Book value per share 38.08 37.30 35.56 Tangible Equity to Tangible Assets Total Assets (GAAP) $6,440,700 $6,349,024 $6,238,744 Less: Intangible assets 553 553 553 Tangible assets (Non-GAAP) $6,440,147 $6,348,471 $6,238,191 Consolidated Equity to Assets (GAAP) 10.66% 10.90% 10.84% Consolidated Tangible Equity to Tangible Assets (Non-GAAP) 10.65% 10.89% 10.83% Three months ended Year EndedEfficiency and Adjusted Efficiency Ratios 12/31/20259/30/20256/30/202512/31/2024 12/31/202512/31/2024 Net interest income (GAAP)A$43,735 $43,119 $41,746 $38,902 $168,973 $151,939 Non-interest income (GAAP)B 4,430 4,689 4,852 4,409 18,945 19,834 Less: Net gains on equity securities - - - - - 1,383 Revenue used for efficiency ratio (Non-GAAP)C$48,165 $47,808 $46,598 $43,311 $187,918 $170,390 Total noninterest expense (GAAP)D$26,710 $26,242 $26,223 $28,165 $105,504 $105,727 Less: Other real estate expense, netE 161 8 522 476 719 770 Expense used for efficiency ratio (Non-GAAP)F$26,549 $26,234 $25,701 $27,689 $104,785 $104,957 Efficiency Ratio (GAAP)D/(A+B) 55.46% 54.89% 56.27% 65.03% 56.14% 61.55%Adjusted Efficiency Ratio (Non-GAAP)F/C 55.12% 54.87% 55.15% 63.93% 55.76% 61.60%Subsidiary:Trustco BankContact:Robert Leonard Executive Vice President (518) 381-3693 Source: TrustCo Bank Corp NY