TrustCo Reports 12.8% Increase in Net Income for the Second Quarter of 2026 to $17 Million

Executive Snapshot:

Financial results:

Key metrics for the second quarter of 2026 compared to the second quarter of 2025:
- Diluted earnings per share of $0.98 increased 24.1% compared to $0.79
- Net interest income of $45.6 million, up 9.2% from $41.7 million
- Net interest margin of 2.87%, up 16 basis points from 2.71%
- Net income of $17.0 million increased 12.8% compared to $15.0 million
- Average loans increased $197.5 million, or 3.8%
- Average deposits increased $208.6 million, or 3.8%
Capital position and Stock Repurchase Program:
- Book value per share as of June 30, 2026 was $38.53, up from $36.75 as of June 30, 2025
- Purchased 10.5% of TrustCo outstanding common stock under the 2026 and 2025 Stock Repurchase Programs through the acquisition of over one million shares in the first half of 2026, following the purchase of one million shares in 2025, reinforcing a disciplined long-term capital allocation strategy
- On pace to complete the repurchase of a total of three million shares, or 15.8%, of TrustCo common stock by the end of 2026

GLENVILLE, N.Y., July 21, 2026 (GLOBE NEWSWIRE) -- TrustCo Bank Corp NY (TrustCo, NASDAQ: TRST) today announced financial results for the second quarter of 2026 highlighted by a continued increase in net interest income and sustained loan and deposit growth across core lending and deposit categories. For the three months ended June 30, 2026, net interest income increased 9.2% year over year to $45.6 million. This was driven by the ongoing asset repricing across our loan portfolio at higher yields and effective execution of deposit growth and pricing strategies. For the three months ended June 30, 2026, net interest margin expanded to 2.87% from 2.71% in the prior year period. This resulted in second quarter 2026 net income of $17.0 million, or $0.98 diluted earnings per share, compared to net income of $15.0 million, or $0.79 diluted earnings per share, for the second quarter 2025; and net income of $33.3 million, or $1.89 diluted earnings per share, for the six months ended June 30, 2026, compared to net income of $29.3 million, or $1.54 diluted earnings per share, for the six months ended June 30, 2025.

During the second quarter of 2026, TrustCo recognized an $844 thousand unrealized gain on equity securities resulting from the conversion of Visa Class B-2 shares into a combination of Visa Class B-3 and Visa Class C shares and the fair-value recognition of the Class C shares received. The Company had not sold the resulting Class C shares as of June 30, 2026. The Company originally obtained the Visa Class B shares in 2008. The strategic decision to retain the Class C shares and not sell them sooner, allowed the Company to avoid commissions and other expenses thus recognizing the full market value.

Overview

Chairman, President, and CEO, Robert J. McCormick, said “We are very pleased to report another quarter of stellar results. As expected, we have seen favorable repricing in our loan portfolio that has contributed to improving net interest margin. We also have seen steady growth in loans and deposits – each of which is up 3.8% year over year. This kind of symmetry in loan and deposit growth represents the ongoing realization of one of our long-time business goals. We take the deposits that we gather and lend those funds right back out into the communities that we serve. We also are realizing success on our long-term capital allocation strategy which has seen the company repurchase two million shares over the past year and a half, and we are on pace to purchase another million shares by the end of this year, which would bring the total for 2025-2026 to nearly 16% of TrustCo’s outstanding shares. We also are pleased to announce that we have moved into the building that we repurposed into our regional corporate headquarters in historic Longwood, Florida, which speaks volumes about our commitment to that great state.”

Details

We have continued to see meaningful net income and net interest income improvement. Management expects these improvements to remain sustainable. The loan and investment portfolios of TrustCo Bank (the “Bank”) continue to reprice upward as lower yielding assets mature and are replaced with higher rate loan originations and investment purchases, driving steady improvement in overall asset yields. We believe that this ongoing repricing reflects disciplined loan production aligned with current market conditions. Complementing this, the Bank maintains a strong liquidity position, driven by deposit growth while decreasing funding costs which underscores the Bank's disciplined relationship banking strategy and the value customers place on stability and service. We believe that these factors position the Bank to generate continued net income and net interest income growth in the coming quarters and deliver long-term value to shareholders. Net interest income was $45.6 million for the second quarter of 2026, an increase of $3.8 million, or 9.2%, compared to the second quarter of 2025, driven by loan growth at higher interest rates and a decrease in interest expense. The net interest margin for the second quarter of 2026 was 2.87%, up 16 basis points from 2.71% in the second quarter of 2025. The yield on interest-earning assets increased to 4.27% in the second quarter of 2026, up 8 basis points from 4.19% in the second quarter of 2025. The cost of interest bearing liabilities decreased to 1.79% in the second quarter of 2026, down from 1.91% in the second quarter of 2025.

Average loans were up $197.5 million, or 3.8%, in the second quarter of 2026 over the same period in 2025. Average residential loans and Home Equity Credit Lines (HECLs), our primary lending focus, were up $142.0 million, or 3.2%, and $44.8 million, or 10.4%, respectively, in the second quarter of 2026 over the same period in 2025. Average commercial loans also increased $13.4 million, or 4.4%, in the second quarter of 2026 over the same period in 2025. Loan growth in the second quarter of 2026 remained steady, driven by continued strength in core relationship lending. Credit quality metrics were stable. Following this period of sustained growth, TrustCo remains confident in the quality of its loan portfolio amid broader market concerns. We believe that our continued focus on strong underwriting within our loan portfolio and conservative lending standards positions us to manage credit risk effectively in the current environment. The consistent growth in the loan portfolio will likely enhance net interest income in the quarters ahead. Average deposits were up $208.6 million, or 3.8%, for the second quarter of 2026 compared to the second 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 second 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 six months ended June 30, 2026, TrustCo repurchased one million shares, or 5.6%, of TrustCo’s outstanding common stock under its previously announced stock repurchase program, which authorizes TrustCo to repurchase up to two million shares, or 11.1%, of TrustCo’s outstanding common stock in 2026. We continue to believe that our approach ensures every dollar of capital is working to generate solid returns, strengthen customer relationships, and enhance shareholder value. As of June 30, 2026, our equity to asset ratio was 10.05%, compared to 10.91% as of June 30, 2025. Book value per share as of June 30, 2026 was $38.53, up 4.8% compared to $36.75 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 $650 thousand in the second quarter of 2026, flat compared to the same period in 2025. For the three months ended June 30, 2026, the provision for credit losses was the result of a provision for credit losses on loans of $1.0 million and a benefit for credit losses on unfunded commitments of $350 thousand. The ratio of allowance for credit losses on loans to total loans was 1.01% and 0.99% as of June 30, 2026 and June 30, 2025, respectively. The allowance for credit losses on loans was $54.1 million as of June 30, 2026, compared to $51.3 million as of June 30, 2025. Nonperforming loans (NPLs) were $21.8 million as of June 30, 2026, compared to $17.9 million as of June 30, 2025. NPLs were 0.40% and 0.35% of total loans as of June 30, 2026 and June 30, 2025, respectively. The coverage ratio, or allowance for credit losses on loans to NPLs, was 248.6% as of June 30, 2026, compared to 286.2% as of June 30, 2025. Nonperforming assets (NPAs) were $23.0 million as of June 30, 2026, compared to $19.0 million as of June 30, 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 second quarter 2026 results will be held at 9:00 a.m. Eastern Time on July 22, 2026. Those wishing to participate in the call may dial toll-free for North America 1-833-461-5787, Meeting ID 562 250 806. The call will also be audio webcast at https://events.q4inc.com/attendee/562250806. The webcast replay will be available for one year at the same link.

About TrustCo Bank Corp NY

TrustCo Bank Corp NY is a $6.5 billion savings and loan holding company and through its subsidiary, Trustco Bank, operated 132 offices in New York, New Jersey, Vermont, Massachusetts, and Florida as of June 30, 2026.

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

Forward-Looking Statements

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

FINANCIAL HIGHLIGHTS

(dollars in thousands, except per share data)
(Unaudited)
	Three months ended
	6/30/2026			3/31/2026			6/30/2025
Summary of operations
Net interest income	$	45,590		$	44,708		$	41,746
Provision for credit losses		650			950			650
Net gains on equity securities		844			-			-
Noninterest income, excluding net gains on equity securities		5,068			4,841			4,852
Noninterest expense		28,333			26,982			26,223
Net income		16,965			16,285			15,039

Per share
Net income per share:
- Basic	$	0.98		$	0.91		$	0.79
- Diluted		0.98			0.91			0.79
Cash dividends		0.38			0.38			0.36
Book value at period end		38.53			38.32			36.75
Market price at period end		54.91			43.78			33.42

At period end
Full time equivalent employees		742			740			733
Full service banking offices		132			133			136

Performance ratios
Return on average assets		1.04	%		1.02	%		0.96	%
Return on average equity		10.22			9.66			8.73
Efficiency ratio (GAAP)		55.01			54.46			56.27
Adjusted Efficiency ratio (1)		55.71			54.35			55.15
Net interest spread		2.48			2.44			2.28
Net interest margin		2.87			2.84			2.71
Dividend payout ratio		38.36			41.40			45.27

Capital ratios at period end
Consolidated equity to assets (GAAP)		10.05	%		10.31	%		10.91	%
Consolidated tangible equity to tangible assets (1)		10.05	%		10.30	%		10.91	%

Asset quality analysis at period end
Nonperforming loans to total loans		0.40	%		0.41	%		0.35	%
Nonperforming assets to total assets		0.35			0.35			0.30
Allowance for credit losses on loans to total loans		1.01			1.00			0.99
Coverage ratio (2)		2.5x			2.5x			2.9x


(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)
	Six Months Ended
	06/30/26			06/30/25
Summary of operations
Net interest income	$	90,298		$	82,119
Provision for credit losses		1,600			950
Net gains on equity securities		844			-
Noninterest income, excluding net gains on equity securities		9,909			9,826
Noninterest expense		55,315			52,552
Net income		33,250			29,314

Per share
Net income per share:
- Basic	$	1.89		$	1.54
- Diluted		1.89			1.54
Cash dividends		0.76			0.72
Book value at period end		38.53			36.75
Market price at period end		54.91			33.42

Performance ratios
Return on average assets		1.03	%		0.94	%
Return on average equity		9.94			8.61
Efficiency ratio (GAAP)		54.74			57.16
Adjusted Efficiency ratio (1)		55.04			56.56
Net interest spread		2.47			2.24
Net interest margin		2.86			2.68
Dividend payout ratio		39.85			46.58

(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
	6/30/2026		3/31/2026		12/31/2025		9/30/2025		6/30/2025
Interest and dividend income:
Interest and fees on loans	$	58,757	$	57,565	$	56,886	$	55,953	$	54,557
Interest and dividends on securities available for sale:
U. S. government sponsored enterprises		111		149		350		599		614
State and political subdivisions		-		-		-		1		-
Mortgage-backed securities and collateralized mortgage
obligations - residential		1,486		1,469		1,490		1,583		1,613
Corporate bonds		776		694		536		265		210
Small Business Administration - guaranteed
participation securities		59		63		68		72		75
Other securities		7		8		8		7		8
Total interest and dividends on securities available for sale		2,439		2,383		2,452		2,527		2,520

Interest on held to maturity securities:
Mortgage-backed securities and collateralized mortgage
obligations - residential		44		47		50		52		54
Total interest on held to maturity securities		44		47		50		52		54

Federal Home Loan Bank stock		123		126		126		125		129

Interest on federal funds sold and other short-term investments		6,344		6,105		6,580		7,376		7,212
Total interest income		67,707		66,226		66,094		66,033		64,472

Interest expense:
Interest on deposits:
Interest-bearing checking		551		533		501		483		536
Savings		703		675		715		741		733
Money market deposit accounts		1,631		1,552		1,810		2,065		2,086
Time deposits		18,863		18,357		18,993		19,427		19,195
Interest on short-term borrowings		369		401		340		198		176
Total interest expense		22,117		21,518		22,359		22,914		22,726

Net interest income		45,590		44,708		43,735		43,119		41,746

Less: Provision for credit losses		650		950		400		250		650
Net interest income after provision for credit losses		44,940		43,758		43,335		42,869		41,096

Noninterest income:
Trustco Financial Services income		1,980		2,135		1,950		1,967		1,818
Fees for services to customers		2,487		2,340		2,192		2,429		2,266
Net gains on equity securities		844		-		-		-		-
Other		601		366		288		293		768
Total noninterest income		5,912		4,841		4,430		4,689		4,852

Noninterest expenses:
Salaries and employee benefits		13,047		12,219		12,242		12,727		11,876
Net occupancy expense		4,381		4,542		4,592		4,470		4,518
Equipment expense		2,082		2,022		2,219		1,938		1,918
Professional services		1,968		1,526		1,083		1,571		1,886
Outsourced services		2,704		2,700		2,100		2,492		2,460
Advertising expense		586		394		629		290		304
FDIC and other insurance		1,101		1,153		1,135		1,052		1,136
Other real estate expense, net		112		50		161		8		522
Other		2,352		2,376		2,549		1,694		1,603
Total noninterest expenses		28,333		26,982		26,710		26,242		26,223

Income before taxes		22,519		21,617		21,055		21,316		19,725
Income taxes		5,554		5,332		5,490		5,058		4,686

Net income	$	16,965	$	16,285	$	15,565	$	16,258	$	15,039

Net income per common share:
- Basic	$	0.98	$	0.91	$	0.85	$	0.87	$	0.79

- Diluted		0.98		0.91		0.85		0.86		0.79

Weighted average basic shares (in thousands)		17,304		17,813		18,275		18,755		18,965
Weighted average diluted shares (in thousands)		17,386		17,876		18,327		18,805		18,994

CONSOLIDATED STATEMENTS OF INCOME, Continued

(dollars in thousands, except per share data)
(Unaudited)
	Six Months Ended
	06/30/26		06/30/25
Interest and dividend income:
Interest and fees on loans	$	116,322	$	108,007
Interest and dividends on securities available for sale:
U. S. government sponsored enterprises		260		1,210
State and political subdivisions		-		-
Mortgage-backed securities and collateralized mortgage
obligations - residential		2,955		3,096
Corporate bonds		1,470		470
Small Business Administration - guaranteed
participation securities		122		156
Other securities		15		15
Total interest and dividends on securities available for sale		4,822		4,947

Interest on held to maturity securities:
Mortgage-backed securities-residential		91		111
Total interest on held to maturity securities		91		111

Federal Home Loan Bank stock		249		280

Interest on federal funds sold and other short-term investments		12,449		13,944
Total interest income		133,933		127,289

Interest expense:
Interest on deposits:
Interest-bearing checking		1,084		1,094
Savings		1,378		1,467
Money market deposit accounts		3,183		4,075
Time deposits		37,220		38,178
Interest on short-term borrowings		770		356
Total interest expense		43,635		45,170

Net interest income		90,298		82,119

Less: Provision for credit losses		1,600		950
Net interest income after provision for credit losses		88,698		81,169

Noninterest income:
Trustco Financial Services income		4,115		3,938
Fees for services to customers		4,827		4,911
Net gains on equity securities		844		-
Other		967		977
Total noninterest income		10,753		9,826

Noninterest expenses:
Salaries and employee benefits		25,266		23,770
Net occupancy expense		8,923		9,072
Equipment expense		4,104		3,862
Professional services		3,494		3,612
Outsourced services		5,404		5,160
Advertising expense		980		665
FDIC and other insurance		2,254		2,324
Other real estate expense, net		162		550
Other		4,728		3,537
Total noninterest expenses		55,315		52,552

Income before taxes		44,136		38,443
Income taxes		10,886		9,129

Net income	$	33,250	$	29,314

Net income per common share:
- Basic	$	1.89	$	1.54

- Diluted		1.89		1.54

Weighted average basic shares (in thousands)		17,557		18,992
Weighted average diluted shares (in thousands)		17,630		19,019

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

(dollars in thousands)
(Unaudited)
	6/30/2026			3/31/2026			12/31/2025			9/30/2025			6/30/2025
ASSETS:

Cash and due from banks	$	44,503		$	43,165		$	50,569		$	42,026		$	45,218
Federal funds sold and other short term investments		652,136			724,943			679,858			653,530			668,373
Total cash and cash equivalents		696,639			768,108			730,427			695,556			713,591

Securities available for sale:
U. S. government sponsored enterprises		14,956			14,887			31,772			51,557			71,241
States and political subdivisions		9			9			9			18			18
Mortgage-backed securities and collateralized mortgage
obligations - residential		203,601			205,209			206,290			215,466			221,721
Small Business Administration - guaranteed
participation securities		10,153			10,796			11,710			12,330			12,945
Corporate bonds		73,804			69,137			59,932			39,800			29,943
Other securities		718			708			705			701			698
Total securities available for sale		303,241			300,746			310,418			319,872			336,566

Held to maturity securities:
Mortgage-backed securities and collateralized mortgage
obligations-residential		3,842			4,097			4,339			4,593			4,836
Total held to maturity securities		3,842			4,097			4,339			4,593			4,836

Federal Reserve Bank and Federal Home Loan Bank stock		6,756			6,601			6,601			6,601			6,601

Loans:
Commercial		322,439			316,763			313,443			311,491			314,273
Residential mortgage loans		4,560,717			4,497,911			4,463,260			4,420,813			4,394,317
Home equity line of credit		484,197			464,887			464,201			447,235			435,433
Installment loans		9,882			10,617			11,556			12,231			12,678
Loans, net of deferred net costs		5,377,235			5,290,178			5,252,460			5,191,770			5,156,701

Less: Allowance for credit losses on loans		54,082			52,994			52,205			51,891			51,265
Net loans		5,323,153			5,237,184			5,200,255			5,139,879			5,105,436

Bank premises and equipment, net		42,273			41,071			40,707			39,718			38,129
Operating lease right-of-use assets		33,872			33,305			33,638			35,291			36,322
Other assets		115,137			116,767			114,315			107,514			106,894

Total assets	$	6,524,913		$	6,507,879		$	6,440,700		$	6,349,024		$	6,348,375

LIABILITIES:
Deposits:
Demand	$	824,717		$	811,637		$	814,908		$	795,508		$	784,351
Interest-bearing checking		1,089,746			1,078,520			1,077,141			1,025,582			1,045,043
Savings accounts		1,076,934			1,070,319			1,069,564			1,063,763			1,082,489
Money market deposit accounts		438,799			442,760			457,389			455,488			467,087
Time deposits		2,251,370			2,249,117			2,138,415			2,140,932			2,111,344
Total deposits		5,681,566			5,652,353			5,557,417			5,481,273			5,490,314

Short-term borrowings		108,382			112,930			120,054			97,749			82,370
Operating lease liabilities		36,361			35,920			36,391			38,180			39,350
Accrued expenses and other liabilities		42,595			35,756			40,249			39,809			43,536

Total liabilities		5,868,904			5,836,959			5,754,111			5,657,011			5,655,570

SHAREHOLDERS' EQUITY:
Capital stock		20,119			20,119			20,119			20,103			20,097
Surplus		261,283			260,808			260,333			259,980			259,490
Undivided profits		499,997			489,540			479,996			471,314			462,158
Accumulated other comprehensive income, net of tax		6,967			8,241			10,024			2,955			1,663
Treasury stock at cost		(132,357	)		(107,788	)		(83,883	)		(62,339	)		(50,603	)

Total shareholders' equity		656,009			670,920			686,589			692,013			692,805

Total liabilities and shareholders' equity	$	6,524,913		$	6,507,879		$	6,440,700		$	6,349,024		$	6,348,375

Outstanding shares (in thousands)		17,028			17,507			18,029			18,554			18,851

NONPERFORMING ASSETS

(dollars in thousands)
(Unaudited)
	6/30/2026			3/31/2026			12/31/2025			9/30/2025			6/30/2025
Nonperforming Assets

New York and other states*
Loans in nonaccrual status:
Commercial	$	1,964		$	1,968		$	1,990		$	292		$	684
Real estate mortgage - 1 to 4 family		15,343			15,212			14,584			14,568			14,048
Installment		37			43			29			30			34
Total nonperforming loans		17,344			17,223			16,603			14,890			14,766
Other real estate owned		1,234			1,364			1,394			1,234			1,136
Total nonperforming assets	$	18,578		$	18,587		$	17,997		$	16,124		$	15,902

Florida
Loans in nonaccrual status:
Commercial	$	-		$	-		$	-		$	-		$	-
Real estate mortgage - 1 to 4 family		4,392			4,222			4,047			3,574			3,132
Installment		16			20			22			13			12
Total nonperforming loans		4,408			4,242			4,069			3,587			3,144
Other real estate owned		-			-			-			-			-
Total nonperforming assets	$	4,408		$	4,242		$	4,069		$	3,587		$	3,144

Total
Loans in nonaccrual status:
Commercial	$	1,964		$	1,968		$	1,990		$	292		$	684
Real estate mortgage - 1 to 4 family		19,735			19,434			18,631			18,142			17,180
Installment		53			63			51			43			46
Total nonperforming loans		21,752			21,465			20,672			18,477			17,910
Other real estate owned		1,234			1,364			1,394			1,234			1,136
Total nonperforming assets	$	22,986		$	22,829		$	22,066		$	19,711		$	19,046


Quarterly Net (Recoveries) Chargeoffs

New York and other states*
Commercial	$	-		$	19		$	-		$	-		$	-
Real estate mortgage - 1 to 4 family		(72	)		(43	)		(33	)		(194	)		(121	)
Installment		(21	)		11			(13	)		(2	)		18
Total net chargeoffs (recoveries)	$	(93	)	$	(13	)	$	(46	)	$	(196	)	$	(103	)

Florida
Commercial	$	-		$	(40	)	$	-		$	-		$	-
Real estate mortgage - 1 to 4 family		-			-			-			-			-
Installment		5			14			32			20			94
Total net (recoveries) chargeoffs	$	5		$	(26	)	$	32		$	20		$	94

Total
Commercial	$	-		$	(21	)	$	-		$	-		$	-
Real estate mortgage - 1 to 4 family		(72	)		(43	)		(33	)		(194	)		(121	)
Installment		(16	)		25			19			18			112
Total net (recoveries) chargeoffs	$	(88	)	$	(39	)	$	(14	)	$	(176	)	$	(9	)


Asset Quality Ratios

Total nonperforming loans (1)	$	21,752		$	21,465		$	20,672		$	18,477		$	17,910
Total nonperforming assets (1)		22,986			22,829			22,066			19,711			19,046
Total net (recoveries) chargeoffs (2)		(88	)		(39	)		(14	)		(176	)		(9	)

Allowance for credit losses on loans (1)		54,082			52,994			52,205			51,891			51,265

Nonperforming loans to total loans		0.40	%		0.41	%		0.39	%		0.36	%		0.35	%
Nonperforming assets to total assets		0.35	%		0.35	%		0.34	%		0.31	%		0.30	%
Allowance for credit losses on loans to total loans		1.01	%		1.00	%		0.99	%		1.00	%		0.99	%
Coverage ratio (1)		248.6	%		246.9	%		252.5	%		280.8	%		286.2	%
Annualized net (recoveries) chargeoffs to average loans (2)		-0.01	%		0.00	%		0.00	%		-0.01	%		0.00	%
Allowance for credit losses on loans to annualized net chargeoffs (2)	N/A			N/A			N/A			N/A			N/A

* Includes New York, New Jersey, Vermont and Massachusetts.
(1) At period-end
(2) For the three-month period ended

DISTRIBUTION OF ASSETS, LIABILITIES AND SHAREHOLDERS' EQUITY -
INTEREST RATES AND INTEREST DIFFERENTIAL

(dollars in thousands)
(Unaudited)	Three months ended							Three months ended
	June 30, 2026							June 30, 2025
	Average			Interest		Average		Average			Interest		Average
	Balance					Rate		Balance					Rate
Assets

Securities available for sale:
U. S. government sponsored enterprises	$	14,980		$	111	2.97	%	$	73,468		$	614	3.34	%
Mortgage backed securities and collateralized mortgage
obligations - residential		220,507			1,486	2.68			244,628			1,613	2.62
State and political subdivisions		9			0	6.77			18			0	6.77
Corporate bonds		71,842			776	4.32			25,707			210	3.26
Small Business Administration - guaranteed
participation securities		11,130			59	2.13			14,083			75	2.14
Other		711			7	3.94			697			8	4.59

Total securities available for sale		319,179			2,439	3.06			358,601			2,520	2.81

Federal funds sold and other short-term Investments		687,216			6,344	3.70			648,457			7,212	4.46

Held to maturity securities:
Mortgage backed securities and collateralized mortgage
obligations - residential		3,964			44	4.47			4,970			54	4.37

Total held to maturity securities		3,964			44	4.47			4,970			54	4.37

Federal Home Loan Bank stock		6,753			123	7.29			6,591			129	7.83

Commercial loans		319,748			4,505	5.64			306,373			4,261	5.56
Residential mortgage loans		4,529,147			46,665	4.12			4,387,181			43,236	3.94
Home equity lines of credit		473,705			7,385	6.25			428,933			6,830	6.39
Installment loans		9,864			202	8.19			12,523			230	7.35

Loans, net of unearned income		5,332,464			58,757	4.41			5,135,010			54,557	4.25

Total interest earning assets		6,349,576		$	67,707	4.27			6,153,629		$	64,472	4.19

Allowance for credit losses on loans		(53,380	)						(50,777	)
Cash & non-interest earning assets		220,854							204,006


Total assets	$	6,517,050						$	6,306,858


Liabilities and shareholders' equity

Deposits:
Interest bearing checking accounts	$	1,085,204		$	551	0.20	%	$	1,039,242		$	536	0.21	%
Money market accounts		442,104			1,631	1.48			470,824			2,086	1.78
Savings		1,073,370			703	0.26			1,087,467			733	0.27
Time deposits		2,252,095			18,863	3.36			2,085,329			19,195	3.69

Total interest bearing deposits		4,852,773			21,748	1.80			4,682,862			22,550	1.93
Short-term borrowings		108,910			369	1.36			81,055			176	0.87

Total interest bearing liabilities		4,961,683		$	22,117	1.79			4,763,917		$	22,726	1.91

Demand deposits		816,688							777,956
Other liabilities		72,604							73,903
Shareholders' equity		666,075							691,082

Total liabilities and shareholders' equity	$	6,517,050						$	6,306,858

Net interest income				$	45,590						$	41,746

Net interest spread						2.48	%						2.28	%


Net interest margin (net interest income to
total interest earning assets)						2.87	%						2.71	%

DISTRIBUTION OF ASSETS, LIABILITIES AND SHAREHOLDERS' EQUITY -
INTEREST RATES AND INTEREST DIFFERENTIAL, Continued

(dollars in thousands)
(Unaudited)	Six Months Ended							Six Months Ended
	June 30, 2026							June 30, 2025
	Average			Interest		Average		Average			Interest		Average
	Balance					Rate		Balance					Rate
Assets

Securities available for sale:
U. S. government sponsored enterprises	$	21,088			260	2.47	%	$	74,071			1,210	3.27	%
Mortgage backed securities and collateralized mortgage
obligations - residential		220,568			2,955	2.68			242,083			3,096	2.56
State and political subdivisions		9			-	6.77			18			0	6.77
Corporate bonds		67,708			1,470	4.34			32,823			470	2.86
Small Business Administration - guaranteed
participation securities		11,433			122	2.14			14,540			156	2.15
Other		710			15	4.23			698			15	4.30

Total securities available for sale		321,516			4,822	3.00			364,233			4,947	2.72

Federal funds sold and other short-term Investments		678,636			12,449	3.70			631,148			13,944	4.46

Held to maturity securities:
Mortgage backed securities and collateralized mortgage
obligations - residential		4,089			91	4.48			5,101			111	4.35

Total held to maturity securities		4,089			91	4.48			5,101			111	4.35

Federal Home Loan Bank stock		6,677			249	7.46			6,549			280	8.55

Commercial loans		317,420			8,911	5.61			302,173			8,426	5.58
Residential mortgage loans		4,504,163			92,431	4.11			4,386,418			85,851	3.92
Home equity lines of credit		469,267			14,558	6.26			421,498			13,265	6.35
Installment loans		10,300			422	8.26			12,744			465	7.36

Loans, net of unearned income		5,301,150			116,322	4.40			5,122,833			108,007	4.22

Total interest earning assets		6,312,068			133,933	4.25			6,129,864			127,289	4.16

Allowance for credit losses on loans		(52,983	)						(50,627	)
Cash & non-interest earning assets		221,773							202,590


Total assets	$	6,480,858						$	6,281,827


Liabilities and shareholders' equity

Deposits:
Interest bearing checking accounts	$	1,072,787			1,084	0.20	%	$	1,038,733			1,094	0.21	%
Money market accounts		446,303			3,183	1.44			469,952			4,075	1.75
Savings		1,070,121			1,378	0.26			1,088,408			1,467	0.27
Time deposits		2,222,120			37,220	3.38			2,069,998			38,178	3.72

Total interest bearing deposits		4,811,331			42,865	1.80			4,667,091			44,814	1.94
Short-term borrowings		112,672			770	1.38			82,125			356	0.87

Total interest bearing liabilities		4,924,003			43,635	1.79			4,749,216			45,170	1.92

Demand deposits		809,007							769,923
Other liabilities		73,151							76,308
Shareholders' equity		674,697							686,380

Total liabilities and shareholders' equity	$	6,480,858						$	6,281,827

Net interest income					90,298							82,119

Net interest spread						2.47	%						2.24	%


Net interest margin (net interest income to
total interest earning assets)						2.86	%						2.68	%

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

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

NON-GAAP FINANCIAL MEASURES RECONCILIATION

(dollars in thousands)
(Unaudited)
		6/30/2026			3/31/2026			6/30/2025
Tangible Equity to Tangible Assets

Equity (GAAP)		$	656,009		$	670,920		$	692,805
Less: Intangible assets			553			553			553
Tangible equity (Non-GAAP)		$	655,456		$	670,367		$	692,252

Total Assets (GAAP)		$	6,524,913		$	6,507,879		$	6,348,375
Less: Intangible assets			553			553			553
Tangible assets (Non-GAAP)		$	6,524,360		$	6,507,326		$	6,347,822

Consolidated Equity to Assets (GAAP)			10.05	%		10.31	%		10.91	%
Consolidated Tangible Equity to Tangible Assets (Non-GAAP)			10.05	%		10.30	%		10.91	%

		Three months ended									Six Months Ended
Efficiency and Adjusted Efficiency Ratios		6/30/2026			3/31/2026			6/30/2025			6/30/2026			6/30/2025

Net interest income (GAAP)	A	$	45,590		$	44,708		$	41,746		$	90,298		$	82,119
Non-interest income (GAAP)	B		5,912			4,841			4,852			10,753			9,826
Less: Net gains on equity securities	C		844			-			-			844			-
Revenue used for efficiency ratio (Non-GAAP)	D	$	50,658		$	49,549		$	46,598		$	100,207		$	91,945

Total noninterest expense (GAAP)	E	$	28,333		$	26,982		$	26,223		$	55,315		$	52,552
Less: Other real estate expense, net	F		112			50			522			162			550
Expense used for efficiency ratio (Non-GAAP)	G	$	28,221		$	26,932		$	25,701		$	55,153		$	52,002

Efficiency Ratio (GAAP)	E/(A+B)		55.01	%		54.46	%		56.27	%		54.74	%		57.16	%
Adjusted Efficiency Ratio (Non-GAAP)	G/D		55.71	%		54.35	%		55.15	%		55.04	%		56.56	%

Subsidiary:	Trustco Bank	Nasdaq -- TRST

Contact:	Robert Leonard
	Executive Vice President
	(518) 381-3693

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