Category: Business

Source: GlobeNewswire (MIL-OSI)

Executive Snapshot:

• Bank-wide financial results:
  • Key metrics for the second quarter 2025:
    • Net income of $15.0 million, or $0.79 diluted earnings per share, increased 19.8% compared to $12.6 million, or $0.66 diluted earnings per share for the second quarter 2024
    • Net interest income of $41.7 million, up 10.5% from $37.8 million for the second quarter 2024
    • Net interest margin of 2.71%, up 18 basis points from 2.53% in second quarter of 2024
    • Average loans were up $115.6 million for the second quarter 2025 compared to the second quarter 2024
    • Average deposits were up $173.4 million for the second quarter 2025 compared to the second quarter 2024
• Capital position and key ratios:
  • Consolidated equity to assets increased to 10.91% as of June 30, 2025 from 10.73% as of June 30, 2024
  • Book value per share as of June 30, 2025 was $36.75, up from $34.46 as of June 30, 2024
  • 169 thousand shares of TrustCo common stock were purchased under the stock repurchase program during the second quarter 2025

• Trustco Financial Services and Wealth Management income:
  • Fees increased to $1.8 million, or by 13.0%, compared to second quarter 2024
  • Assets under management increased to $1.19 billion, or by 8.2%, compared to second quarter 2024

GLENVILLE, N.Y., July 21, 2025 (GLOBE NEWSWIRE) — TrustCo Bank Corp NY (TrustCo, NASDAQ: TRST) today announced strong financial results for the second quarter of 2025 underscored by rising net interest income, continued margin expansion, and accelerated loan growth across key portfolios. Net interest income increased 10.5% year over year to $41.7 million, driven by the ongoing repricing of the loan portfolio at higher yields and disciplined management of deposit costs, which remained well-controlled despite sustained competitive pressures. Net interest margin expanded to 2.71% from 2.53% in the prior year period, reflecting improved asset yields and prudent deposit pricing strategies. This resulted in second quarter 2025 net income of $15.0 million or $0.79 diluted earnings per share, compared to net income of $12.6 million or $0.66 diluted earnings per share for the second quarter 2024. Loan growth gained momentum during the quarter, with total average loans increasing $115.6 million or 2.3% for the second quarter 2025 over the same period in 2024. This growth signals increasing borrower confidence and supports the Bank’s strategic focus on high quality relationship lending.        

Overview

Chairman, President, and CEO, Robert J. McCormick said “Part of our long-term strategy is having the right mix of products available so that we can sell the right thing, to the right customer, at the right time. It is our ability to do this with agility and skill that has produced the standout results announced today. We saw double digit growth in our return metrics year over year, as return on average assets improved 17%, and return on average equity grew 12.5%. Our margin improved 7% year over year, in tandem with a 12% year over year improvement in adjusted efficiency ratio. Our ability to sell home equity products at a time of high market demand for the flexibility they offer has been key to this success. Home equity credit lines are up 18% year over year. Likewise, we strategically grew commercial loans 11% year over year – which we have done without exposure to risky multi-family loans or other industry-specific concentrations. We lowered non-performing loans to total loans by 7% year over year, and booked a second consecutive quarter of net recoveries. These exceptional results in the first half of 2025 provide a foundation for positive momentum moving into 2026.”

Details

As the year continues to progress, we are seeing increased opportunities to deploy our resources effectively. Some efforts include loan originations, targeted investments in technology and digital banking infrastructure, and strategic growth in key markets. Average loans were up $115.6 million, or 2.3%, in the second quarter 2025 over the same period in 2024. Average residential loans and HECLs, our primary lending focus, were up $27.9 million, or 0.6%, and $64.7 million, or 17.8%, respectively, in the second quarter 2025 over the same period in 2024. Average commercial loans also increased $25.8 million, or 9.2%, in the second 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 $173.4 million, or 3.3%, for the second 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 second quarter of 2025, we remained committed to returning value to shareholders through a disciplined share repurchase program, which reflects our confidence in the long-term strength of the franchise and our focus on capital optimization. TrustCo purchased 169 thousand, or 0.9%, of total shares outstanding of TrustCo common stock under the previously announced stock repurchase program during the second quarter of 2025. Our approach ensures every dollar of capital is working to generate solid returns, strengthen customer relationships, and enhance shareholder value. As of June 30, 2025, our equity to asset ratio was 10.91%, compared to 10.73% as of June 30, 2024. Book value per share as of June 30, 2025 was $36.75, up 6.6% compared to $34.46 a year earlier.

Net interest income was $41.7 million for the second quarter 2025, an increase of $4.0 million, or 10.5%, compared to the second quarter of 2024, driven by loan growth at higher interest rates, increase in interest on federal funds sold and other short-term investments, and less interest expense on deposit products, partially offset by lower investment interest income. The net interest margin for the second quarter 2025 was 2.71%, up 18 basis points from 2.53% in the second quarter of 2024. The yield on interest earnings assets increased to 4.19% in the second quarter of 2025, up 13 basis points from 4.06% in the second quarter of 2024. The cost of interest bearing liabilities decreased to 1.91% in the second quarter 2025, down from 1.97% in the second quarter 2024. The Bank is well positioned to continue delivering strong net interest income performance even as the Federal Reserve signals a potential easing cycle in the months ahead. Our balance sheet is built for resilience and flexibility, with a favorable asset mix and a stable deposit base that we believe positions us to thrive across interest rate environments. In addition to new loan originations, we are seeing ongoing opportunities to reprice portions of our existing loan book as higher-rate loans replace paydowns and early payoffs, helping us maintain attractive yields. With loan demand accelerating and funding costs stabilizing, we believe there is meaningful upside to net interest income in the coming quarters. Our proactive asset-liability management strategy gives us confidence in sustaining margin strength and driving consistent profitable growth.

Non-interest income, net of net gains on equity securities, increased to $4.9 million as compared to $4.3 million for the second quarter of 2024. This increase was primarily attributable to wealth management and financial services fees, which increased by 13.0% to $1.8 million, driven by strong client demand and higher assets under management. These revenues represent 37.5% of non-interest income for the second quarter of 2025. The majority of this fee income is recurring, supported by long-term advisory relationships and a growing base of managed assets. Non-interest expense increased $236 thousand over the second quarter of 2024.

Asset quality remains strong and has been consistent over the past twelve months. The Company recorded a provision for credit losses on loans of $650 thousand in the second quarter of 2025. The ratio of allowance for credit losses on loans to total loans was 0.99% as of both June 30, 2025 and 2024. The allowance for credit losses on loans was $51.3 million as of June 30, 2025, compared to $49.8 million as of June 30, 2024. Nonperforming loans (NPLs) were $17.9 million as of June 30, 2025, compared to $19.2 million as of June 30, 2024. NPLs were 0.35% and 0.38% of total loans as of June 30, 2025 and 2024, respectively. The coverage ratio, or allowance for credit losses on loans to NPLs, was 286.2% as of June 30, 2025, compared to 259.4% as of June 30, 2024. Nonperforming assets (NPAs) were $19.0 million as of June 30, 2025, compared to $21.5 million as of June 30, 2024.  

A conference call to discuss second quarter 2025 results will be held at 9:00 a.m. Eastern Time on July 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 258501. 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 410483.   The call will also be audio webcast at  https://events.q4inc.com/attendee/979003710, 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 June 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 the impact of our loan portfolio’s growth, loan demand and funding cost 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, and many of the risks and uncertainties are heightened by or may, in the future, be heightened by volatility in financial markets and macroeconomic or geopolitical concerns related to inflation, changes in United States and foreign trade policy, continued elevated interest rates and ongoing armed conflicts (including the Russia/Ukraine conflict and the conflict in Israel and surrounding areas). 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 Report on Form 10-Q for the quarter ended March 31, 2025, and our Quarterly Report on Form 10-Q for the quarterly period ended June 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.

TRUSTCO BANK CORP NY
GLENVILLE, NY
FINANCIAL HIGHLIGHTS
(dollars in thousands, except per share data)
(Unaudited)
	Three months ended
	6/30/2025				3/31/2025				6/30/2024
Summary of operations
Net interest income	$	41,746			$	40,373			$	37,788
Provision for credit losses		650				300				500
Net gains on equity securities		–				–				1,360
Noninterest income, excluding net gains on equity securities		4,852				4,974				4,291
Noninterest expense		26,223				26,329				26,459
Net income		15,039				14,275				12,551
Per share
Net income per share:
– Basic	$	0.79			$	0.75			$	0.66
– Diluted		0.79				0.75				0.66
Cash dividends		0.36				0.36				0.36
Book value at period end		36.75				36.16				34.46
Market price at period end		33.42				30.48				28.77
At period end
Full time equivalent employees		733				740				753
Full service banking offices		136				136				138
Performance ratios
Return on average assets		0.96	%			0.93	%			0.82	%
Return on average equity		8.73				8.49				7.76
Efficiency ratio (GAAP)		56.27				58.06				60.91
Adjusted Efficiency ratio (1)		55.15				58.00				62.84
Net interest spread		2.28				2.21				2.09
Net interest margin		2.71				2.64				2.53
Dividend payout ratio		45.27				47.97				54.57
Capital ratios at period end
Consolidated equity to assets		10.91	%			10.85	%			10.73	%
Consolidated tangible equity to tangible assets (1)		10.91	%			10.84	%			10.72	%
Asset quality analysis at period end
Nonperforming loans to total loans		0.35	%			0.37	%			0.38	%
Nonperforming assets to total assets		0.30				0.33				0.35
Allowance for credit losses on loans to total loans		0.99				0.99				0.99
Coverage ratio (2)		2.9x				2.7x				2.6x
(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
	06/30/25				06/30/24
Summary of operations
Net interest income	$	82,119				74,366
Provision for credit losses		950				1,100
Net gains on equity securities		–				1,360
Noninterest income, excluding net gains on equity securities		9,826				9,134
Noninterest expense		52,552				51,362
Net income		29,314				24,677
Per share
Net income per share:
– Basic	$	1.54				1.30
– Diluted		1.54				1.30
Cash dividends		0.72				0.72
Book value at period end		36.75				34.46
Market price at period end		33.42				28.77
Performance ratios
Return on average assets		0.94	%			0.81
Return on average equity		8.61				7.65
Efficiency ratio (GAAP)		57.16				60.53
Adjusted Efficiency ratio (1)		56.56				61.40
Net interest spread		2.24				2.05
Net interest margin		2.68				2.48
Dividend payout ratio		46.58				55.51
(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
	6/30/2025				3/31/2025				12/31/2024				9/30/2024					6/30/2024
Interest and dividend income:
Interest and fees on loans	$	54,557			$	53,450			$	53,024			$	52,112			$	50,660
Interest and dividends on securities available for sale:
U. S. government sponsored enterprises		614				596				680				718				909
State and political subdivisions		–				–				–				–				1
Mortgage-backed securities and collateralized mortgage
obligations – residential		1,613				1,483				1,418				1,397				1,451
Corporate bonds		210				260				358				361				362
Small Business Administration – guaranteed
participation securities		75				81				84				90				94
Other securities		8				7				6				2				2
Total interest and dividends on securities available for sale		2,520				2,427				2,546				2,568				2,819
Interest on held to maturity securities:
obligations – residential		54				57				59				62				65
Total interest on held to maturity securities		54				57				59				62				65
Federal Home Loan Bank stock		129				151				152				153				147
Interest on federal funds sold and other short-term investments		7,212				6,732				6,128				6,174				6,894
Total interest income		64,472				62,817				61,909				61,069				60,585
Interest expense:
Interest on deposits:
Interest-bearing checking		536				558				397				311				288
Savings		733				734				719				770				675
Money market deposit accounts		2,086				1,989				2,024				2,154				2,228
Time deposits		19,195				18,983				19,680				18,969				19,400
Interest on short-term borrowings		176				180				187				194				206
Total interest expense		22,726				22,444				23,007				22,398				22,797
Net interest income		41,746				40,373				38,902				38,671				37,788
Less: Provision for credit losses		650				300				400				500				500
Net interest income after provision for credit losses		41,096				40,073				38,502				38,171				37,288
Noninterest income:
Trustco Financial Services income		1,818				2,120				1,778				2,044				1,609
Fees for services to customers		2,266				2,645				2,226				2,482				2,399
Net gains on equity securities		–				–				–				23				1,360
Other		768				209				405				382				283
Total noninterest income		4,852				4,974				4,409				4,931				5,651
Noninterest expenses:
Salaries and employee benefits		11,876				11,894				12,068				12,134				12,520
Net occupancy expense		4,518				4,554				4,563				4,271				4,375
Equipment expense		1,918				1,944				2,404				1,757				1,990
Professional services		1,886				1,726				1,782				1,863				1,570
Outsourced services		2,460				2,700				3,051				2,551				2,755
Advertising expense		304				361				590				339				466
FDIC and other insurance		1,136				1,188				1,113				1,112				797
Other real estate expense, net		522				28				476				204				16
Other		1,603				1,934				2,118				1,969				1,970
Total noninterest expenses		26,223				26,329				28,165				26,200				26,459
Income before taxes		19,725				18,718				14,746				16,902				16,480
Income taxes		4,686				4,443				3,465				4,027				3,929
Net income	$	15,039			$	14,275			$	11,281			$	12,875			$	12,551
Net income per common share:
– Basic	$	0.79			$	0.75			$	0.59			$	0.68			$	0.66
– Diluted		0.79				0.75				0.59				0.68				0.66
Average basic shares (in thousands)		18,965				19,020				19,015				19,010				19,022
Average diluted shares (in thousands)		18,994				19,044				19,045				19,036				19,033

CONSOLIDATED STATEMENTS OF INCOME, Continued
(dollars in thousands, except per share data)
(Unaudited)
	Six Months Ended
	06/30/25				06/30/24
Interest and dividend income:
Interest and fees on loans	$	108,007				100,464
Interest and dividends on securities available for sale:
U. S. government sponsored enterprises		1,210				1,815
State and political subdivisions		–				1
Mortgage-backed securities and collateralized mortgage
obligations – residential		3,096				2,945
Corporate bonds		470				838
Small Business Administration – guaranteed
participation securities		156				194
Other securities		15				5
Total interest and dividends on securities available for sale		4,947				5,798
Interest on held to maturity securities:
Mortgage-backed securities-residential		111				133
Total interest on held to maturity securities		111				133
Federal Home Loan Bank stock		280				299
Interest on federal funds sold and other short-term investments		13,944				13,644
Total interest income		127,289				120,338
Interest expense:
Interest on deposits:
Interest-bearing checking		1,094				528
Savings		1,467				1,387
Money market deposit accounts		4,075				4,570
Time deposits		38,178				39,077
Interest on short-term borrowings		356				410
Total interest expense		45,170				45,972
Net interest income		82,119				74,366
Less: Provision for credit losses		950				1,100
Net interest income after provision for credit losses		81,169				73,266
Noninterest income:
Trustco Financial Services income		3,938				3,425
Fees for services to customers		4,911				5,144
Net gains on equity securities		–				1,360
Other		977				565
Total noninterest income		9,826				10,494
Noninterest expenses:
Salaries and employee benefits		23,770				23,947
Net occupancy expense		9,072				8,986
Equipment expense		3,862				3,728
Professional services		3,612				3,030
Outsourced services		5,160				5,256
Advertising expense		665				874
FDIC and other insurance		2,324				1,891
Other real estate expense, net		550				90
Other		3,537				3,560
Total noninterest expenses		52,552				51,362
Income before taxes		38,443				32,398
Income taxes		9,129				7,721
Net income	$	29,314				24,677
Net income per common share:
– Basic	$	1.54				1.30
– Diluted		1.54				1.30
Average basic shares (in thousands)		18,992				19,023
Average diluted shares (in thousands)		19,019				19,033

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(dollars in thousands)
(Unaudited)
	6/30/2025				3/31/2025				12/31/2024				9/30/2024				6/30/2024
ASSETS:
Cash and due from banks	$	45,218			$	48,782			$	47,364			$	49,659			$	42,193
Federal funds sold and other short term investments		668,373				707,355				594,448				473,306				493,920
Total cash and cash equivalents		713,591				756,137				641,812				522,965				536,113
Securities available for sale:
U. S. government sponsored enterprises		71,241				65,942				85,617				90,588				106,796
States and political subdivisions		18				18				18				26				26
Mortgage-backed securities and collateralized mortgage
obligations – residential		221,721				219,333				213,128				222,841				218,311
Small Business Administration – guaranteed
participation securities		12,945				13,683				14,141				15,171				15,592
Corporate bonds		29,943				24,779				44,581				54,327				53,764
Other securities		698				698				700				701				688
Total securities available for sale		336,566				324,453				358,185				383,654				395,177
Held to maturity securities:
Mortgage-backed securities and collateralized mortgage
obligations-residential		4,836				5,090				5,365				5,636				5,921
Total held to maturity securities		4,836				5,090				5,365				5,636				5,921
Federal Reserve Bank and Federal Home Loan Bank stock		6,601				6,507				6,507				6,507				6,507
Loans:
Commercial		314,273				302,753				286,857				280,261				282,441
Residential mortgage loans		4,394,317				4,380,561				4,388,302				4,382,674				4,370,640
Home equity line of credit		435,433				419,806				409,261				393,418				370,063
Installment loans		12,678				13,017				13,638				14,503				15,168
Loans, net of deferred net costs		5,156,701				5,116,137				5,098,058				5,070,856				5,038,312
Less: Allowance for credit losses on loans		51,265				50,606				50,248				49,950				49,772
Net loans		5,105,436				5,065,531				5,047,810				5,020,906				4,988,540
Bank premises and equipment, net		38,129				37,178				33,782				33,324				33,466
Operating lease right-of-use assets		36,322				34,968				36,627				37,958				38,376
Other assets		106,894				108,681				108,656				98,730				102,544
Total assets	$	6,348,375			$	6,338,545			$	6,238,744			$	6,109,680			$	6,106,644
LIABILITIES:
Deposits:
Demand	$	784,351			$	793,306			$	762,101			$	753,878			$	745,227
Interest-bearing checking		1,045,043				1,067,948				1,027,540				988,527				1,029,606
Savings accounts		1,082,489				1,094,968				1,086,534				1,092,038				1,144,427
Money market deposit accounts		467,087				478,872				465,049				477,113				517,445
Time deposits		2,111,344				2,061,576				2,049,759				1,952,635				1,840,262
Total deposits		5,490,314				5,496,670				5,390,983				5,264,191				5,276,967
Short-term borrowings		82,370				82,275				84,781				91,450				89,720
Operating lease liabilities		39,350				38,324				40,159				41,469				42,026
Accrued expenses and other liabilities		43,536				33,468				46,478				43,549				42,763
Total liabilities		5,655,570				5,650,737				5,562,401				5,440,659				5,451,476
SHAREHOLDERS’ EQUITY:
Capital stock		20,097				20,097				20,097				20,058				20,058
Surplus		259,490				259,182				258,874				257,644				257,490
Undivided profits		462,158				453,931				446,503				442,079				436,048
Accumulated other comprehensive income (loss), net of tax		1,663				(132	)			(3,861	)			(6,600	)			(14,268	)
Treasury stock at cost		(50,603	)			(45,270	)			(45,270	)			(44,160	)			(44,160	)
Total shareholders’ equity		692,805				687,808				676,343				669,021				655,168
Total liabilities and shareholders’ equity	$	6,348,375			$	6,338,545			$	6,238,744			$	6,109,680			$	6,106,644
Outstanding shares (in thousands)		18,851				19,020				19,020				19,010				19,010

NONPERFORMING ASSETS
(dollars in thousands)
(Unaudited)
	6/30/2025				3/31/2025				12/31/2024				9/30/2024				6/30/2024
Nonperforming Assets
New York and other states*
Loans in nonaccrual status:
Commercial	$	684			$	688			$	343			$	466			$	741
Real estate mortgage – 1 to 4 family		14,048				14,795				14,671				15,320				14,992
Installment		34				139				108				163				131
Total nonperforming loans		14,766				15,622				15,122				15,949				15,864
Other real estate owned		1,136				2,107				2,175				2,503				2,334
Total nonperforming assets	$	15,902			$	17,729			$	17,297			$	18,452			$	18,198
Florida
Loans in nonaccrual status:
Commercial	$	–			$	–			$	–			$	314			$	314
Real estate mortgage – 1 to 4 family		3,132				3,135				3,656				3,176				2,985
Installment		12				3				22				5				22
Total nonperforming loans		3,144				3,138				3,678				3,495				3,321
Other real estate owned		–				–				–				–				–
Total nonperforming assets	$	3,144			$	3,138			$	3,678			$	3,495			$	3,321
Total
Loans in nonaccrual status:
Commercial	$	684			$	688			$	343			$	780			$	1,055
Real estate mortgage – 1 to 4 family		17,180				17,930				18,327				18,496				17,977
Installment		46				142				130				168				153
Total nonperforming loans		17,910				18,760				18,800				19,444				19,185
Other real estate owned		1,136				2,107				2,175				2,503				2,334
Total nonperforming assets	$	19,046			$	20,867			$	20,975			$	21,947			$	21,519
Quarterly Net (Recoveries) Chargeoffs
New York and other states*
Commercial	$	–			$	(3	)		$	62			$	65			$	–
Real estate mortgage – 1 to 4 family		(121	)			41				(316	)			104				(74	)
Installment		18				4				41				11				(2	)
Total net chargeoffs (recoveries)	$	(103	)		$	42			$	(213	)		$	180			$	(76	)
Florida
Commercial	$	–			$	(315	)		$	314			$	–			$	–
Real estate mortgage – 1 to 4 family		–				–				–				–				17
Installment		94				15				1				42				7
Total net (recoveries) chargeoffs	$	94			$	(300	)		$	315			$	42			$	24
Total
Commercial	$	–			$	(318	)		$	376			$	65			$	–
Real estate mortgage – 1 to 4 family		(121	)			41				(316	)			104				(57	)
Installment		112				19				42				53				5
Total net (recoveries) chargeoffs	$	(9	)		$	(258	)		$	102			$	222			$	(52	)
Asset Quality Ratios
Total nonperforming loans (1)	$	17,910			$	18,760			$	18,800			$	19,444			$	19,185
Total nonperforming assets (1)		19,046				20,867				20,975				21,947				21,519
Total net (recoveries) chargeoffs (2)		(9	)			(258	)			102				222				(52	)
Allowance for credit losses on loans (1)		51,265				50,606				50,248				49,950				49,772
Nonperforming loans to total loans		0.35	%			0.37	%			0.37	%			0.38	%			0.38	%
Nonperforming assets to total assets		0.30	%			0.33	%			0.34	%			0.36	%			0.35	%
Allowance for credit losses on loans to total loans		0.99	%			0.99	%			0.99	%			0.99	%			0.99	%
Coverage ratio (1)		286.2	%			269.8	%			267.3	%			256.9	%			259.4	%
Annualized net (recoveries) chargeoffs to average loans (2)		0.00	%			-0.02	%			0.01	%			0.02	%			0.00	%
Allowance for credit losses on loans to annualized net chargeoffs (2)	N/A				N/A				123.2x				56.3x				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, 2025												June 30, 2024
	Average				Interest					Average			Average				Interest					Average
	Balance									Rate			Balance									Rate
Assets
Securities available for sale:
U. S. government sponsored enterprises	$	73,468			$	614				3.34	%		$	113,844			$	909				3.20	%
Mortgage backed securities and collateralized mortgage
obligations – residential		244,628				1,613				2.62				250,517				1,451				2.30
State and political subdivisions		18				0				6.77				26				1				6.75
Corporate bonds		25,707				210				3.26				55,065				362				2.63
Small Business Administration – guaranteed
participation securities		14,083				75				2.14				17,436				94				2.15
Other		697				8				4.59				694				2				1.15
Total securities available for sale		358,601				2,520				2.81				437,582				2,819				2.58
Federal funds sold and other short-term Investments		648,457				7,212				4.46				506,493				6,894				5.48
Held to maturity securities:
Mortgage backed securities and collateralized mortgage
obligations – residential		4,970				54				4.37				6,054				65				4.28
Total held to maturity securities		4,970				54				4.37				6,054				65				4.28
Federal Home Loan Bank stock		6,591				129				7.83				6,340				147				9.27
Commercial loans		306,373				4,261				5.56				280,559				3,765				5.37
Residential mortgage loans		4,387,181				43,236				3.94				4,359,232				40,819				3.75
Home equity lines of credit		428,933				6,830				6.39				364,210				5,814				6.42
Installment loans		12,523				230				7.35				15,395				262				6.86
Loans, net of unearned income		5,135,010				54,557				4.25				5,019,396				50,660				4.04
Total interest earning assets		6,153,629			$	64,472				4.19				5,975,865			$	60,585				4.06
Allowance for credit losses on loans		(50,777	)											(49,454	)
Cash & non-interest earning assets		204,006												181,688
Total assets	$	6,306,858											$	6,108,099
Liabilities and shareholders’ equity
Deposits:
Interest bearing checking accounts	$	1,039,242			$	536				0.21	%		$	1,009,048			$	288				0.11	%
Money market accounts		470,824				2,086				1.78				524,068				2,228				1.71
Savings		1,087,467				733				0.27				1,145,922				675				0.24
Time deposits		2,085,329				19,195				3.69				1,873,139				19,400				4.17
Total interest bearing deposits		4,682,862				22,550				1.93				4,552,177				22,591				2.00
Short-term borrowings		81,055				176				0.87				93,703				206				0.89
Total interest bearing liabilities		4,763,917			$	22,726				1.91				4,645,880			$	22,797				1.97
Demand deposits		777,956												735,262
Other liabilities		73,903												76,258
Shareholders’ equity		691,082												650,699
Total liabilities and shareholders’ equity	$	6,306,858											$	6,108,099
Net interest income					$	41,746											$	37,788
Net interest spread										2.28	%											2.09	%
Net interest margin (net interest income to
total interest earning assets)										2.71	%											2.53	%

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, 2025												June 30, 2024
	Average				Interest					Average			Average				Interest					Average
	Balance									Rate			Balance									Rate
Assets
Securities available for sale:
U. S. government sponsored enterprises	$	74,071				1,210				3.27	%		$	119,908				1,815				3.03	%
Mortgage backed securities and collateralized mortgage
obligations – residential		242,083				3,096				2.56				254,665				2,945				2.31
State and political subdivisions		18				–				6.77				26				1				6.82
Corporate bonds		32,823				470				2.86				64,345				838				2.60
Small Business Administration – guaranteed
participation securities		14,540				156				2.15				17,830				194				2.18
Mortgage backed securities and collateralized mortgage
obligations – commercial		–												–				–				–
Other		698				15				4.30				695				5				1.44
Total securities available for sale		364,233				4,947				2.72				457,469				5,798				2.53
Federal funds sold and other short-term Investments		631,148				13,944				4.46				502,072				13,644				5.47
Held to maturity securities:
Mortgage backed securities and collateralized mortgage
obligations – residential		5,101				111				4.35				6,192				133				4.29
Total held to maturity securities		5,101				111				4.35				6,192				133				4.29
Federal Home Loan Bank stock		6,549				280				8.55				6,271				299				9.54
Commercial loans		302,173				8,426				5.58				278,871				7,425				5.33
Residential mortgage loans		4,386,418				85,851				3.92				4,359,351				81,236				3.73
Home equity lines of credit		421,498				13,265				6.35				358,607				11,277				6.32
Installment loans		12,744				465				7.36				15,761				526				6.72
Loans, net of unearned income		5,122,833				108,007				4.22				5,012,590				100,464				4.01
Total interest earning assets		6,129,864				127,289				4.16				5,984,594				120,338				4.03
Allowance for credit losses on loans		(50,627	)											(49,139	)
Cash & non-interest earning assets		202,590												188,364
Total assets	$	6,281,827											$	6,123,819
Liabilities and shareholders’ equity
Deposits:
Interest bearing checking accounts	$	1,038,733				1,094				0.21	%		$	999,589				528				0.11	%
Money market accounts		469,952				4,075				1.75				534,378				4,570				1.72
Savings		1,088,408				1,467				0.27				1,152,241				1,387				0.24
Time deposits		2,069,998				38,178				3.72				1,881,535				39,077				4.18
Total interest bearing deposits		4,667,091				44,814				1.94				4,567,743				45,562				2.01
Short-term borrowings		82,125				356				0.87				93,510				410				0.88
Total interest bearing liabilities		4,749,216				45,170				1.92				4,661,253				45,972				1.98
Demand deposits		769,923												730,781
Other liabilities		76,308												83,105
Shareholders’ equity		686,380												648,680
Total liabilities and shareholders’ equity	$	6,281,827											$	6,123,819
Net interest income						82,119												74,366
Net interest spread										2.24	%											2.05	%
Net interest margin (net interest income to
total interest earning assets)										2.68	%											2.48	%

Non-GAAP Financial Measures Reconciliation

Tangible book value per share is a non-GAAP financial measure derived from GAAP-based amounts. We calculate tangible book value by excluding the balance of intangible assets from total shareholders’ equity divided by shares outstanding. We believe that this is consistent with the treatment by bank regulatory agencies, which exclude intangible assets from the calculation of risk-based capital ratios. Additionally, we believe that this measure is important to many investors in the marketplace who are interested in relative changes from period to period in equity exclusive of changes in intangible assets.

Tangible equity as a percentage of tangible assets at period end is a non-GAAP financial measure derived from GAAP-based amounts. We calculate tangible equity and tangible assets by excluding the balance of intangible assets from total shareholders’ equity and total assets, respectively. We calculate tangible equity as a percentage of tangible assets at period end by dividing tangible equity by tangible assets at period end. We believe that this is consistent with the treatment by bank regulatory agencies, which exclude intangible assets from the calculation of risk-based capital ratios. Additionally, we believe that this measure is important to many investors in the marketplace who are interested in relative changes from period to period in equity and total assets, each exclusive of changes in intangible assets.

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

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

NON-GAAP FINANCIAL MEASURES RECONCILIATION
(dollars in thousands)
(Unaudited)
		6/30/2025				3/31/2025				6/30/2024
Tangible Book Value Per Share
Equity (GAAP)		$	692,805			$	687,808			$	655,168
Less: Intangible assets			553				553				553
Tangible equity (Non-GAAP)		$	692,252			$	687,255			$	654,615
Shares outstanding			18,851				19,020				19,010
Tangible book value per share			36.72				36.13				34.44
Book value per share			36.75				36.16				34.46
Tangible Equity to Tangible Assets
Total Assets (GAAP)		$	6,348,375			$	6,338,545			$	6,106,644
Less: Intangible assets			553				553				553
Tangible assets (Non-GAAP)		$	6,347,822			$	6,337,992			$	6,106,091
Consolidated Equity to Assets (GAAP)			10.91	%			10.85	%			10.73	%
Consolidated Tangible Equity to Tangible Assets (Non-GAAP)			10.91	%			10.84	%			10.72	%
		Three months ended												Six Months Ended
Efficiency and Adjusted Efficiency Ratios		6/30/2025			3/31/2025				6/30/2024					6/30/2025					6/30/2024
Net interest income (GAAP)	A	$	41,746			$	40,373			$	37,788			$	82,119			$	74,366
Non-interest income (GAAP)	B		4,852				4,974				5,651				9,826				10,494
Less: Net gains on equity securities			–				–				1,360				–				1,360
Revenue used for efficiency ratio (Non-GAAP)	C	$	46,598			$	45,347			$	42,079			$	91,945			$	83,500
Total noninterest expense (GAAP)	D	$	26,223			$	26,329			$	26,459			$	52,552			$	51,362
Less: Other real estate expense, net	E		522				28				16				550				90
Expense used for efficiency ratio (Non-GAAP)	F	$	25,701			$	26,301			$	26,443			$	52,002			$	51,272
Efficiency Ratio (GAAP)	D/(A+B)		56.27	%			58.06	%			60.91	%			57.16	%			60.53	%
Adjusted Efficiency Ratio (Non-GAAP)	F/C		55.15	%			58.00	%			62.84	%			56.56	%			61.40	%

Subsidiary: Trustco Bank

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

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