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TrustCo Announces Net Income Up 26.3%; Net Interest Income up 11.5%;

The Product of Strategic Vision and Effective Tactics

Executive Snapshot:

Glenville, New York – October 21, 2025

TrustCo Bank Corp NY (TrustCo, NASDAQ: TRST) today announced strong financial results for the third quarter of 2025 highlighted by a substantial increase in net interest income, continued margin expansion, and sustained loan and deposit growth across key portfolios.  For the three months ended September 30, 2025, net interest income increased 11.5% year over year to $43.1 million, fueled by the continued repricing of the loan portfolio to higher yields and careful control of deposit costs, despite persistent competitive challenges.  For the three months ended September 30, 2025, net interest margin expanded to 2.79% from 2.61% in the prior year period, driven by enhanced asset yields and disciplined deposit pricing strategies.  This resulted in third quarter 2025 net income of $16.3 million or $0.86 diluted earnings per share, compared to net income of $12.9 million or $0.68 diluted earnings per share for the third quarter 2024; and net income of $45.6 million or $2.41 diluted earnings per share for the nine months ended September 30, 2025, compared to net income of $37.6 million or $1.97 diluted earnings per share for the nine months ended September 30, 2024.  Loan balances expanded throughout the quarter, with total average loans increasing $125.9 million or 2.5% for the third quarter 2025 over the same period in 2024.  Following a 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 “Solid strategic vision accompanied by effective tactical decisions throughout the year are combining to create exceptional results and build momentum that we expect will continue to yield favorable returns to our shareholders.  Our strategy is to deliver market-leading loan and deposit products, treat people fairly, and build lasting customer relationships.  Tactically, we have held the line on cost of funds, grown loans and deposits, and meaningfully impacted our customers and communities through our service to food banks, the Ronald McDonald House Charities, various Veteran groups, and hospitals. The impact is dramatic.  Return metrics are up significantly year to date, with ROAA, and ROAE up 18%, and 15%, respectively.  Perhaps most dramatically, we impacted shareholder value by executing our share repurchase program, acquiring 467 thousand shares, with authorization remaining.  This contributed to earnings per share growth of 22% year to date.  A lesser company would be proud to have results like these for the entire year.  Staying true to strategic vision consistently yields dividends, literally.”

Details

As the year progresses we expect to continue to see meaningful net interest income upside for quarters to come.  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 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 while navigating evolving funding dynamics.  Together, these factors position the Bank to sustain healthy net interest income growth in the coming quarters and deliver long-term value to shareholders.  Net interest income was $43.1 million for the third quarter 2025, an increase of $4.4 million, or 11.5%, compared to the third 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 third quarter 2025 was 2.79%, up 18 basis points from 2.61% in the third quarter of 2024.  The yield on interest earnings assets increased to 4.25% in the third quarter of 2025, up 14 basis points from 4.11% in the third quarter of 2024.  The cost of interest bearing liabilities decreased to 1.90% in the third quarter 2025, down from 1.94% in the third quarter 2024.

Average loans were up $125.9 million, or 2.5%, in the third quarter 2025 over the same period in 2024.  Average residential loans and HECLs, our primary lending focus, were up $34.0 million, or 0.8%, and $59.9 million, or 15.7%, respectively, in the third quarter 2025 over the same period in 2024.  Average commercial loans also increased $34.6 million, or 12.4%, in the third 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 sustained growth in the loan portfolio will likely enhance net interest income in the quarters ahead.  Average deposits were up $251.1 million, or 4.8%, for the third quarter 2025 over the same period in 2024, primarily as a result of an increase in time deposits, interest bearing checking accounts, and demand deposits. The Bank’s continued emphasis on relationship banking, combined with competitive product offerings and digital capabilities, has contributed to a stable deposit base that supports ongoing loan growth and expansion.

During the third quarter of 2025, the Bank has remained a prudent steward of capital, steadfastly committed to enhancing shareholder value through a disciplined strategic share repurchase program.  This reflects our confidence in the long-term strength of the franchise and our focus on capital optimization. For the three and nine months ended September 30, 2025, TrustCo purchased 298 thousand, or 1.6%, and 467 thousand, or 2.5%, respectively, of total shares outstanding of TrustCo common stock under the previously announced stock repurchase program.  As a result, we have 533 thousand, or 2.8%, of outstanding shares available for repurchase remaining in this program, which if completed will represent a repurchase of one million shares, or 5.3%, of total outstanding shares.  Our approach ensures every dollar of capital is working to generate solid returns, strengthen customer relationships, and enhance shareholder value.  As of September 30, 2025, our equity to asset ratio was 10.90%, compared to 10.95% as of September 30, 2024.  Book value per share as of September 30, 2025 was $37.30, up 6.0% compared to $35.19 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 on loans of $250 thousand in the third quarter of 2025, compared to $500 thousand for the same period in 2024.  For the three months ended September 30, 2025 the provision for credit losses was the result of a provision for credit losses on loans of $450 thousand, and a benefit 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 September 30, 2025 and 2024, respectively.  The allowance for credit losses on loans was $51.9 million as of September 30, 2025, compared to $50.0 million as of September 30, 2024.  Nonperforming loans (NPLs) were $18.5 million as of September 30, 2025, compared to $19.4 million as of September 30, 2024.  NPLs were 0.36% and 0.38% of total loans as of September 30, 2025 and 2024, respectively.  The coverage ratio, or allowance for credit losses on loans to NPLs, was 280.8% as of September 30, 2025, compared to 256.9% as of September 30, 2024.  Nonperforming assets (NPAs) were $19.7 million as of September 30, 2025, compared to $21.9 million as of September 30, 2024.

 

A conference call to discuss third quarter 2025 results will be held at 9:00 a.m. Eastern Time on October 22, 2025.  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 142665.  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 156241.  The call will also be audio webcast at https://events.q4inc.com/attendee/516669384, and will be available for one year.

 

About TrustCo Bank Corp NY

TrustCo Bank Corp NY is a $6.3 billion savings and loan holding company and through its subsidiary, Trustco Bank, operated 136 offices in New York, New Jersey, Vermont, Massachusetts, and Florida as of September 30, 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 for future quarters; the impact of our loan portfolio’s growth, as well as the continued repricing of our loan and investment portfolios, on net interest income; 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 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; and other risks and uncertainties set forth in our public filings made with the Securities and Exchange Commission (the “SEC”), including our most recent 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 and June 30, 2025, and our Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2025 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.

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(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

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(1)	Non-GAAP Financial Measure, see Non-GAAP Financial Measures Reconciliation.

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CONSOLIDATED STATEMENTS OF INCOME, Continued

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