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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM 8-K
 
CURRENT REPORT PURSUANT
TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
 
Date of Report (date of earliest event reported): July 21, 2026
 
TrustCo Bank Corp NY
(Exact name of registrant as specified in its charter)
 
     
New York
0-10592
14-1630287
State or Other Jurisdiction of Incorporation or Organization
Commission File No.
I.R.S. Employer Identification Number
 
5 SARNOWSKI DRIVE, GLENVILLE, NEW YORK 12302
(Address of principal executive offices)
 
(518) 377-3311
(Registrant’s Telephone Number,
Including Area Code)
 
NOT APPLICABLE
(Former Name or Former Address, if Changed Since Last Report)
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
 
☐
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
☐
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
☐
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
☐
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 
Securities registered pursuant to Section 12(b) of the Act:
 
 
Title of each class
 
Trading Symbol(s)
 
Name of each exchange on which registered
 
Common Stock, $1.00 par value
 
TRST
 
Nasdaq Global Select Market
 
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
 
Emerging growth company ☐
 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
 
2
TrustCo Bank Corp NY
 
Item 2.02.
Results of Operations and Financial Condition
 
On July 21, 2026 TrustCo Bank Corp NY (“TrustCo”) issued a press release with results for the quarter ending June 30, 2026. Attached is a copy of the press release labeled as Exhibit 99(a).
 
Item 9.01.
Financial Statements and Exhibits
 
(d)
Exhibits
 
   
Reg S-K Exhibit No.
Description
   
99(a) Press release dated July 21, 2026 for the period ending June 30, 2026, regarding quarterly results.
   
104
Cover Page Interactive Data File – the cover page XBRL tags are embedded within the Inline XBRL document.
 
-2-
SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
 
     
Dated: July 21, 2026    
     
  TrustCo Bank Corp NY
  (Registrant)
     
  By: /s/ Michael M. Ozimek
    Michael M. Ozimek
    Executive Vice President and
    Chief Financial Officer
 
 
 -3-
NY 0000357301 false 0000357301 2026-07-21 2026-07-21
EX-99.A 5 ef20078312_ex99-a.htm EXHIBIT 99.A
 Exhibit 99(a)
 
   
5 Sarnowski Drive, Glenville, New York, 12302
News Release
     
Subsidiary:
Trustco Bank
Nasdaq -- TRST
 
 
 
Contact:
Robert Leonard
 
 
Executive Vice President
 
 
(518) 381-3693
 
 
FOR IMMEDIATE RELEASE:
 
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, New York – July 21, 2026
 
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.
 
Page | 1
 
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.
 
Page | 2
 
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.
 
Page | 3
 
Forward-Looking Statements
 
All statements in this news release and the related earnings call that are not historical are forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as "anticipate," "intend," "plan," "goal," "seek," "believe," "project," "estimate," "expect," "strategy," "future," "likely," "may," "should," "will" and similar references to future development, results or periods. Examples of forward-looking statements include, among others, statements we make regarding our expectations for our future performance, including our expectations regarding net 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.
 
Page | 4
 
TRUSTCO BANK CORP NY
GLENVILLE, NY
 
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)
    2.5 x     2.5 x     2.9 x
 
(1) Non-GAAP Financial Measure, see Non-GAAP Financial Measures Reconciliation.
(2) Calculated as allowance for credit losses on loans divided by total nonperforming loans.
 
Page | 5
 
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.
 
Page | 6
 
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  
 
Page | 7
 
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  
 
Page | 8
 
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  
 
Page | 9
 
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
 
Page | 10
 
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 %
 
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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 %
 
Page | 12
 
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 %
 
 
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