TRUSTCO BANK CORP N Y
For the period ended Jun 30, 2026. Filed Aug 10, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2026 · Filed Aug 10, 2026
TRST$57.30+1.3%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-03-31; filed 2026-05-08.
0001140361-26-020000
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-08-10.
0001140361-26-031982
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 123 previous paragraphs and 151 current paragraphs.
68 unchanged; 51 reworded; 25 added; 4 removed; 0 previous and 7 current paragraphs rearranged.
Tables are not compared: 19 previous and 27 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (25)
Current report
The Company expects to see continued volatility in the economic markets resulting from governmental responses to inflation and recessionary signs in the economy, as well as uncertainty about the impacts of the conflict in Iran and tariffs. These changing conditions could have impacts on the balance sheet and income statement of the Company for the remainder of the year.
Current report
TrustCo recorded net income of $33.3 million, or $1.89 of diluted earnings per share, for the six-months ended June 30, 2026, compared to net income of $29.3 million, or $1.54 of diluted earnings per share, in the same period in 2025. Return on average assets was 1.03% and 0.94%, for the six-months ended June 30, 2026 and 2025, respectively. Return on average equity was 9.94% and 8.61% for the six-months ended June 30, 2026 and 2025, respectively.
Current report
Visa Exchange Offer
Current report
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.
Current report
For the six-months ended June 30, 2026, the net interest margin was 2.86%, up 18 basis points versus the prior year. The six-month results reflect the following significant factors:
Current report
Compared to the second quarter of 2025, the average balance of residential mortgage loans, home equity credit lines, and commercial loans, all increased, while the average balance of installment loans decreased.
Current report
Net interest income increased by $8.2 million to $90.3 million in the first six-months of 2026 compared to the same period in 2025. The net interest spread was up 23 basis points to 2.47% in the first six-months of 2026 compared to the same period in 2025. Net interest margin increased 18 basis points to 2.86% for the first six-months of 2026 compared to the same period in 2025. The increases in net interest income for the first six months of 2026 primarily resulted from the same factors discussed above for the second quarter of 2026.
Current report
As of June 30, 2026 there was $1.2 million of foreclosed real estate compared to $1.4 million at December 31, 2025.
Current report
During the quarter ended June 30, 2026, the Company enhanced its allowance for credit losses on loans calculation by updating its prepayment and curtailment assumptions. The Company continues to utilize internal data for estimating prepayments and curtailments. The Company is now using more recent data to better align the current interest rate environment, borrower behavior and the resulting impacts to paydowns, payoffs, etc. related to its loan portfolio.
Current report
The enhancement did not change the Company’s underlying methodology for estimating quantitative credit losses. The Company continues to use a discounted cash flow approach based on probability of default and loss given default assumptions, including the use of peer data.
Current report
The Company also continues to apply a reasonable and supportable forecast based on Moody’s Baseline Scenario for a four-quarter period. Following the forecast period, the model uses a four-quarter straight-line reversion to historical averages.
Current report
Qualitative adjustments continue to be evaluated using a weighted scorecard framework based on regulatory interagency guidance. The framework considers internal and external factors that may not be fully captured in the quantitative model, including changes in portfolio risk characteristics, economic conditions, lending practices, and other factors affecting the credit quality of each portfolio segment.
Current report
The aforementioned enhancement to prepayment and curtailment assumptions do not have a material impact on the Company’s financial statements.
Current report
Total noninterest income for the second quarter of 2026 was $5.9 million compared to $4.9 million for the same period in the prior year. The increase is primarily the result of an unrealized gain of $844 thousand recorded on the Visa Class C Common stock exchange in the second quarter of 2026. Fees for services to customers was also up $221 thousand and financial services income was up $162 thousand in the second quarter of 2026 compared to the same period in the prior year. This was offset by other income decreasing $167 thousand for the second quarter of 2026 compared to the same period in the prior year. The fair value of assets under management was $1.4 billion at June 30, 2026, $1.3 billion at December 31, 2025, and $1.2 billion at June 30, 2025.
Current report
For the six-months ended June 30, 2026 total noninterest income was $10.8 million, up $927 thousand compared to the prior year period. The increase is also primarily the result the unrealized gain of $844 thousand recorded on the Visa Class C Common stock exchange during the six-months ended June 30, 2026. Financial services income was also up $177 thousand for the six months ended June 30, 2026 compared to the same period in the prior year. This was offset by fees for services to customers decreasing $84 thousand for the six-months ended June 30, 2026 compared to the same period in the prior year.
Current report
Total noninterest expenses were $28.3 million for the three months ended June 30, 2026, compared to $26.2 million for the three months ended June 30, 2025. Significant changes included a $1.2 million increase in salaries and employee benefits primarily as a result of higher salaries and an increase in employees, as well as an increase in incentive compensation. Full time equivalent headcount was 733 as of June 30, 2025, 743 as of December 31, 2025, and 742 as of June 30, 2026. Changes in headcount represent normal fluctuations. Additionally, we had a $244 thousand increase in outsourced services, a $282 thousand increase in advertising expense, and a $749 thousand increase in other expenses primarily as a result of higher charitable contributions and various seasonal expenses, partially offset by a $410 thousand decrease in other real estate expense, net.
Current report
Total noninterest expenses were $55.3 million for the six-months ended June 30, 2026, compared to $52.6 million for the six-months ended June 30, 2025. Significant changes included a $1.5 million increase in salaries and employee benefits primarily as a result of higher salaries and an increase in employees, as well as an increase in incentive compensation, a $242 thousand increase in equipment expense, a $244 thousand increase in outsourced services, a $315 thousand increase in advertising expense, and a $1.2 million increase in other expenses primarily as a result of higher charitable contributions and various seasonal expenses, partially offset by a $388 thousand decrease in other real estate expense, net.
Current report
Index
Current report
Index
Current report
Index
Current report
Index
Current report
Management's Discussion and Analysis
Current report
STATISTICAL DISCLOSURE
Current report
INTEREST RATES AND INTEREST DIFFERENTIAL
Removed paragraphs (4)
Previous report
As of both March 31, 2026 and December 31, 2025 there was $1.4 million of other real estate owned.
Previous report
Total noninterest income for the first quarter of 2026 and 2025 was $4.8 million and $5.0 million, respectively. The decrease over the same period in the prior year was primarily related to a decrease of $389 thousand in interchange income, partially offset by an increase of $157 thousand in other income. The fair value of assets under management was $1.3 billion as of March 31, 2026, $1.3 billion as of December 31, 2025 and $1.1 billion as of March 31, 2025.
Previous report
Total noninterest expenses were $27.0 million for the three months ended March 31, 2026, compared to $26.3 million for the three months ended March 31, 2025, representing an increase of 2.5%. Significant changes included increases in salaries and employee benefits, equipment expense, and other expenses, partially offset by a decrease in professional services. Full time equivalent headcount was flat at 740 as of March 31, 2025 and 2026.
Previous report
TrustCo Bank Corp NY
Reworded paragraphs (51)
Previous wording
The review that follows focuses on the factors affecting the financial condition and results of operations of TrustCo during the three month period ended March 31, 2026, with comparisons to the corresponding period in 2025, as applicable. The consolidated interim financial statements and related notes, as well as the Annual Report on Form 10-K for the year ended December 31, 2025, which was filed with the SEC on March 16, 2026 (the “2025 Form 10-K”), should also be read in conjunction with this review. Amounts in prior period consolidated interim financial statements are reclassified whenever necessary to conform to the current period’s presentation. These reclassifications have no effect on prior period net income or shareholders’ equity. See “Cautionary Note Regarding Forward-Looking Statements” on page 5 of this report for a description of important factors that could cause actual results to differ from expected results.
Current wording
The review that follows focuses on the factors affecting the financial condition and results of operations of TrustCo during the three-month and six-month periods ended June 30, 2026, with comparisons to the corresponding period in 2025, as applicable. The consolidated interim financial statements and related notes, as well as the Annual Report on Form 10-K for the year ended December 31, 2025, which was filed with the SEC on March 16, 2026 (the “2025 Form 10-K”), should also be read in conjunction with this review. Amounts in the prior period consolidated interim financial statements are reclassified whenever necessary to conform to the current period's presentation. These reclassifications have no effect on prior period net income or shareholders’ equity. See “Cautionary Note Regarding Forward-Looking Statements” on page 5 of this report for a description of important factors that could cause actual results to differ from expected results.
Previous wording
Following this Management’s Discussion and Analysis is the table “Distribution of Assets, Liabilities and Shareholders’ Equity: Interest Rates and Interest Differential,” which gives a detailed breakdown of TrustCo’s average interest earning assets and interest bearing liabilities for the three month periods ended March 31, 2026 and 2025.
Current wording
Following this Management’s Discussion and Analysis is the table "Distribution of Assets, Liabilities and Shareholders' Equity: Interest Rates and Interest Differential" which gives a detailed breakdown of TrustCo's average interest earning assets and interest-bearing liabilities for the three and six month periods ended June 30, 2026 and 2025.
Previous wording
During the first quarter of 2026, financial markets started out strong to begin 2026, but declined by the end of the quarter driven by tensions in the Middle East, higher oil prices and labor market deterioration. As of the end of the first quarter of 2026, the S&P 500 Index was down 4.63%, Nasdaq was down 7.11%, and the Dow Jones Industrial Average was down 3.58% compared to December 31, 2025. The 10‑year Treasury bond averaged 4.20% during Q1 2026 compared to 4.10% in Q4 2025, an increase of 10 basis points. The 2‑year Treasury bond averaged 3.58% during Q1 2026 compared to 3.52% in Q4 2025, and the spread between the 10‑year and the 2-year Treasury bonds increased from 0.58% on average in Q4 2025 to 0.62% in Q1 2026. Generally, steeper yield curves are favorable for portfolio mortgage lenders like TrustCo, and the table below illustrates the range of rate movements for both short term and longer term rates. During the first quarter of 2026 Federal Funds rate remained flat at a range of 3.50% to 3.75%.
Current wording
During the second quarter of 2026, financial markets enjoyed solid growth in all major financial market indexes. The S&P 500 Index was up 14.87%, Nasdaq was up 21.41%, and the Dow Jones Industrial Average was up 12.90% compared to the end of the first quarter of 2026. The 10‑year Treasury bond averaged 4.42% during Q2 2026 compared to 4.20% in Q1 2026, an increase of 22 basis points. The 2‑year Treasury bond average rate increased 39 basis points to 3.97% during Q2 2026, which flattened the yield curve as compared to the prior quarter. The spread between the 10‑year and the 2-year Treasury bonds decreased from 0.62% on average in Q1 2026 to 0.46% in Q2 2026. Generally, steeper yield curves are favorable for portfolio mortgage lenders like TrustCo, and the table below illustrates the range of rate movements for both short term and longer-term rates. During the first half of 2026, the Federal Funds rate remained flat at a range of 3.50% to 3.75%.
Previous wording
The country has been experiencing economic uncertainty as markets continue to adjust to changes in tariff policies, Middle East tensions, increased oil prices and a volatile labor market. The Federal Open Market Committee (“FOMC”) lowered the Federal Funds target rate range to 3.50-3.75% in December 2025 and there was no change in the first quarter of 2026.
Current wording
The country has been experiencing economic uncertainty as markets continue to adjust to changes in tariff policies, Middle East tensions, increased oil prices and a volatile labor market. The Federal Open Market Committee (“FOMC”) lowered the Federal Funds target rate range to 3.50-3.75% in December 2025 and there was no change in the first half of 2026. At its meeting in July 2026, the FOMC majority voted to leave rates unchanged although three members voted to increase the Federal Funds target rate.
Previous wording
TrustCo recorded net income of $16.3 million, or $0.91 of diluted earnings per share, for the three months ended March 31, 2026, compared to net income of $14.3 million, or $0.75 of diluted earnings per share, in the same period in 2025. Return on average assets was 1.02% and 0.93%, respectively, for the three months ended March 31, 2026 and 2025. Return on average equity was 9.66% and 8.49%, respectively, for the three months ended March 31, 2026 and 2025.
Current wording
TrustCo recorded net income of $17.0 million, or $0.98 of diluted earnings per share, for the three-months ended June 30, 2026, compared to net income of $15.0 million, or $0.79 of diluted earnings per share, in the same period in 2025. Return on average assets was 1.04% and 0.96%, respectively, for the three months ended June 30, 2026 and 2025. Return on average equity was 10.22% and 8.73%, respectively, for the three-months ended June 30, 2026 and 2025.
Previous wording
TrustCo’s results are affected by a variety of factors including competitive and economic conditions in the specific markets in which the Company operates and, more generally, in the national economy, financial market conditions and the regulatory environment. Each of these factors is dynamic, and changes in any area can have an impact on TrustCo’s results. Included in the 2025 Form 10-K is a description of the effect that changes in interest rates had on the results for the year 2025 compared to 2024. Many of the same market factors discussed in the 2025 Form 10-K continued to have an impact on results through the first quarter of 2026.
Current wording
TrustCo’s results are affected by a variety of factors including competitive and economic conditions in the specific markets in which the Company operates and, more generally, in the national economy, financial market conditions and the regulatory environment. Each of these factors is dynamic, and changes in any area can have an impact on TrustCo’s results. Included in the 2025 Form 10-K is a description of the effect that changes in interest rates had on the results for the year 2025 compared to 2024. Many of the same market factors discussed in the 2025 Form 10-K continued to have an impact on results through the second quarter of 2026.
Previous wording
Interest rates have a significant impact on the operations and financial results of all financial services companies. One of the most important interest rates used to control national economic policy is the “Federal Funds” rate. This is the interest rate utilized within the banking system for overnight borrowings for institutions with the highest credit rating. During the first quarter of 2026 Federal Funds target rate remained flat at a range of 3.50% to 3.75%.
Current wording
Interest rates have a significant impact on the operations and financial results of all financial services companies. One of the most important interest rates used to control national economic policy is the “Federal Funds” rate. This is the interest rate utilized within the banking system for overnight borrowings for institutions with the highest credit rating. During the second quarter of 2026 Federal Funds target rate remained flat at a range of 3.50% to 3.75% through June 30, 2026.
Previous wording
TrustCo’s principal loan products are residential real estate loans. Most of TrustCo’s residential real estate loans carry a fixed rate of interest. As noted above, residential real estate loans and longer‑term investments are most affected by the changes in longer-term market interest rates such as the 10-year Treasury. The 10‑year Treasury yield was up 10 basis points, on average, during the first quarter of 2026 compared to the fourth quarter of 2025, and it was down 25 basis points as compared to the first quarter of 2025.
Current wording
TrustCo’s principal loan products are residential real estate loans. Most of TrustCo’s residential real estate loans carry a fixed rate of interest. As noted above, residential real estate loans and longer‑term investments are most affected by the changes in longer term market interest rates such as the 10-year Treasury. The 10‑year Treasury yield increased 22 basis points, on average, during the second quarter of 2026 compared to the first quarter of 2026 and also increased 6 basis points as compared to the second quarter of 2025.
Previous wording
For the first quarter of 2026, the net interest margin was 2.84%, up 20 basis points versus the prior year’s first quarter. The quarterly results reflect the following significant factors:
Current wording
For the second quarter of 2026, the net interest margin was 2.87%, up 16 basis points versus the prior year’s second quarter. The quarterly results reflect the following significant factors:
Previous wording
During the first quarter of 2026, the Company continued to focus on its strategy to expand its loan portfolio by offering competitive interest rates. Management believes that the TrustCo residential real estate loan product is very competitive compared to local and national competitors. Competition remains strong in the Company’s market areas.
Current wording
During the second quarter of 2026, the Company continued to focus on its strategy to expand its loan portfolio by offering competitive interest rates. Management believes the TrustCo residential real estate loan product is very competitive compared to local and national competitors. Competition remains strong in the Company’s market areas.
Previous wording
Total average interest earning assets increased from $6.11 billion in the first quarter of 2025 to $6.27 billion in the same period of 2026 with an average yield of 4.23% in the first quarter of 2026 and 4.13% in the first quarter of 2025. The mix of assets invested in securities available for sale decreased while Federal Funds sold and other short-term investments and loans increased over the prior year period. Interest income on average earning assets increased $3.4 million in the first quarter of 2026 from the prior year period. This increase was primarily driven by an increase in interest income on loans due to higher interest rates on loan originations over the last year.
Current wording
Total average interest earning assets increased from $6.15 billion in the second quarter of 2025 to $6.35 billion in the same period of 2026 with an average yield of 4.27% in the second quarter of 2026 and 4.19% in the second quarter of 2025. The mix of assets invested in Federal Funds sold and other short-term investments and loans increased while securities available for sale and held to maturity securities decreased over the prior year period. Interest income on average earning assets increased from $64.5 million in the second quarter of 2025 to $67.7 million in the second quarter of 2026. This increase was primarily driven by the increase in interest income on loans due to higher interest rates on loan originations over the last year and variable rate loans repricing upwards.
Previous wording
The average balance of loans was $5.27 billion in the first quarter of 2026 up from $5.11 billion in the comparable period in 2025. The yield on loans increased 19 basis points to 4.38%.
Current wording
The average balance of loans was $5.33 billion in the second quarter of 2026 and $5.14 billion in the comparable period in 2025. The yield on loans was up 16 basis points to 4.41%. Interest income on loans was $58.8 million in the second quarter of 2026 up $4.2 million from the same period in 2025.
Previous wording
Compared to the first quarter of 2025, the average balance of residential mortgage loans, commercial loans, and home equity loans all increased, while installment loans decreased. The average balance of residential mortgage loans was $4.48 billion in 2026 compared to $4.39 billion in 2025, an increase of 2.1%. The average yield on residential mortgage loans increased by 20 basis points to 4.09% in the first quarter of 2026 compared to 2025, primarily as a result of the higher interest rates on new originations compared to the existing portfolio yield.
Current wording
The average balance of residential mortgage loans was $4.53 billion in the second quarter of 2026 compared to $4.39 billion in 2025, an increase of 3.2%. The average yield on residential mortgage loans increased by 18 basis points to 4.12% in the second quarter of 2026 compared to 2025, primarily as a result of the higher interest rates on new originations compared to the existing portfolio yield.
Previous wording
TrustCo actively markets the residential loan products within its market territories. Mortgage loan rates are affected by a number of factors including rates on Treasury securities, the Federal Funds target rate, and rates set by competitors and secondary market participants. TrustCo aggressively markets the unique aspects of its loan products thereby attempting to create differentiation from other lenders. These unique aspects include low closing costs, fast turn-around time on loan approvals, and no escrow or mortgage insurance requirements for qualified borrowers. Assuming a continued decline in long-term interest rates, the Company would anticipate that the unique features of its loan products will continue to attract customers in the residential mortgage loan area.
Current wording
TrustCo actively markets the residential loan products within its market territories. Mortgage loan rates are affected by a number of factors including rates on Treasury securities, the Federal Funds target rate, and rates set by competitors and secondary market participants. TrustCo aggressively markets the unique aspects of its loan products thereby attempting to create differentiation from other lenders. These unique aspects include low closing costs, fast turn-around time on loan approvals, and no escrow or mortgage insurance requirements for qualified borrowers. Assuming a change in long-term interest rates, the Company would anticipate that the unique features of its loan products will continue to attract customers in the residential mortgage loan area.
Previous wording
Commercial loans, which consist primarily of loans secured by commercial real estate, increased $17.1 million to an average balance of $315.1 million in the first quarter of 2026 compared to the same period in the prior year. The average yield on this portfolio was flat at 5.59% compared to the prior year period. The Company has remained selective in underwriting commercial loans in 2026 as the apparent risk/reward balance has been less favorable in some cases.
Current wording
Commercial loans, which consist primarily of loans secured by commercial real estate, increased $13.4 million to an average balance of $319.7 million in the second quarter of 2026 compared to the same period in the prior year. The average yield on this portfolio was up 8 basis points to 5.64% compared to the prior year period, primarily as a result of higher interest rates on new originations compared to the existing portfolio yield and variable rate loans repricing upwards. The Company has remained selective in underwriting commercial loans in 2026 as the apparent risk/reward balance has been less favorable in some cases.
Previous wording
The average yield on home equity credit lines decreased 4 basis points to 6.26% during the first quarter of 2026 compared to the prior year period. The average balances of home equity lines increased 12.3% to $464.8 million in the first quarter of 2026 as compared to the prior year.
Current wording
The average yield on home equity credit lines decreased 14 basis points to 6.25% during the second quarter of 2026 compared to the year earlier period. The average balances of home equity credit lines increased 10.4% to $473.7 million in the second quarter of 2026 as compared to the prior year.
Previous wording
The average balance of the securities available for sale portfolio for the first quarter of 2026 was $323.9 million compared to $369.9 million for the comparable period in 2025. The decrease in the balance reflects routine paydowns, calls and maturities, partially offset by new investment purchases. The average yield was 2.94% for the first quarter of 2026 compared to 2.62% for the first quarter of 2025. The increase in average yield is a result of higher yields on bonds purchased as well as lower rate bonds maturing since the prior year quarter. This portfolio is primarily comprised of agency issued residential mortgage-backed securities, bonds issued by government sponsored enterprises (such as Fannie Mae, the Federal Home Loan Bank, and Freddie Mac), Small Business Administration participation certificates, corporate bonds and municipal bonds. These securities are recorded at fair value with any adjustment in fair value included in other comprehensive income, net of tax.
Current wording
The average balance of the securities available for sale portfolio for the second quarter of 2026 was $319.2 million compared to $358.6 million for the comparable period in 2025. The decrease in the balance reflects routine paydowns, calls and maturities, partially offset by new investment purchases. The average yield was 3.06% for the second quarter of 2026 compared to 2.81% for the second quarter of 2025. The increase in average yield is a result of higher yields on bonds purchased as well as lower rate bonds maturing since the prior year quarter. This portfolio is primarily comprised of agency issued residential mortgage backed securities, bonds issued by government sponsored enterprises (such as Fannie Mae, the Federal Home Loan Bank, and Freddie Mac), Small Business Administration participation certificates, corporate bonds and municipal bonds. These securities are recorded at fair value with any adjustment in fair value included in other comprehensive income (loss), net of tax.
Previous wording
The net unrealized loss in the available for sale securities portfolio was $17.9 million as of March 31, 2026 compared to a net unrealized loss of $16.2 million as of December 31, 2025. The increase in the net unrealized losses in the portfolio is the result of the current interest rate environment.
Current wording
The net unrealized loss in the available for sale securities portfolio was $18.9 million as of June 30, 2026 compared to a net unrealized loss of $16.2 million as of December 31, 2025. The increase in net unrealized losses in the portfolio is the result of the current interest rate environment.
Previous wording
The average balance of held to maturity securities was $4.2 million for the first quarter of 2026 compared to $5.2 million in the first quarter of 2025. The decrease in balances reflects routine paydowns. No new securities were added to this portfolio during the period. The average yield was 4.47% for the first quarter of 2026 compared to 4.34% for the year earlier period. TrustCo expects to hold the securities in this portfolio until they mature or are called.
Current wording
The average balance of held to maturity securities was $4.0 million for the second quarter of 2026 compared to $5.0 million in the second quarter of 2025. The decrease in balances reflects routine paydowns. No new securities were added to this portfolio during the period. The average yield was 4.47% for the second quarter of 2026 compared to 4.37% for the year earlier period. TrustCo expects to hold the securities in this portfolio until they mature or are called.
Previous wording
The net unrealized gain in the held to maturity securities portfolio was $37 thousand as of March 31, 2026 compared to a net unrealized gain of $50 thousand as of December 31, 2025. The decrease in the net unrealized gains in the portfolio is the result of changes in market interest rate levels.
Current wording
The net unrecognized gain in the held to maturity securities portfolio was $25 thousand as of June 30, 2026 compared to a net unrecognized gain of $50 thousand as of December 31, 2025. The decrease in the net unrecognized gains in the portfolio is the result of changes in market interest rate levels.
Previous wording
The 2026 first quarter average balance of Federal Funds sold and other short-term investments was $670.0 million, a $56.3 million increase from the $613.6 million average for the same period in 2025, primarily due to an increase in deposits and funds from maturing securities which have not yet been deployed. The yield was 3.70% for the first quarter of 2026 and 4.45% for the comparable period in 2025. Interest income from this portfolio decreased $627 thousand from the prior year period. While the average balances increased year over year, the decreases in the Federal Funds target rate in 2025 resulted in a decrease in interest income over the same period in the prior year.
Current wording
The 2026 second quarter average balance of Federal Funds sold and other short-term investments was $687.2 million, a $38.8 million increase from the $648.5 million average for the same period in 2025, primarily due to an increase in deposits and funds from maturing and called securities which have not yet been deployed. The yield was 3.70% for the second quarter of 2026 and 4.46% for the comparable period in 2025. Interest income from this portfolio decreased $868 thousand from $7.2 million in 2025 to $6.3 million in 2026. The increase in the average balance was not enough to offset the decrease in yield over the same period.
Previous wording
Total average interest bearing deposits (which includes interest bearing checking, money market accounts, savings and time deposits) increased $118.3 million to $4.77 billion for the first quarter of 2026 versus the first quarter in the prior year, and the average rate paid decreased from 1.94% for 2025 to 1.80% for 2026. Total interest expense on these deposits decreased $1.1 million to $21.1 million in the first quarter of 2026 compared to the year earlier period. From the first quarter of 2025 to the first quarter of 2026, interest bearing checking account average balances were up 2.1%, certificates of deposit average balances were up 6.7%, non‑interest demand average balances were up 5.2%, average savings balances decreased 2.1% and money market balances were down 3.9%. Overall, average balances are up from a year ago as we continue to encourage customers to retain their funds in the expanded product offerings of the Bank through aggressive marketing and product differentiation.
Current wording
Total average interest-bearing deposits (which includes interest bearing checking, money market accounts, savings and time deposits) increased $169.9 million to $4.85 billion for the second quarter of 2026 versus the second quarter in the prior year, and the average rate paid decreased from 1.93% for 2025 to 1.80% for 2026. Total interest expense on these deposits decreased $802 thousand to $21.7 million in the second quarter of 2026 compared to the year earlier period. From the second quarter of 2025 to the second quarter of 2026, interest-bearing checking account average balances were up 4.4%, certificates of deposit average balances were up 8.0%, non-interest demand average balances were up 5.0%, average savings balances decreased 1.3% and money market balances were down 6.1%. Overall, average balances are up from a year ago as we continue to encourage customers to retain their funds in the expanded product offerings of the Bank through aggressive marketing and product differentiation.
Previous wording
As of March 31, 2026 and December 31, 2025, approximately $1.23 billion and $1.22 billion, respectively, of our deposit portfolio was uninsured. The uninsured amounts are estimates based on the methodologies and assumptions used for the Bank’s regulatory reporting requirements.
Current wording
As of June 30, 2026 and December 31, 2025, approximately $1.25 billion and $1.22 billion, respectively, of our deposit portfolio were uninsured. The uninsured amounts are estimates based on the methodologies and assumptions used for the Bank's regulatory reporting requirements.
Previous wording
Average short-term borrowings for the first quarter of 2026 were $116.5 million compared to $83.2 million in the same period in 2025. The increase in the average balance from the prior year period is primarily a result of increases in customer balances. The average rate increased to 1.40% in the first quarter of 2026 compared to 0.88% in the prior year quarter. The short-term borrowings of the Company are cash management accounts, which represent retail accounts with customers for which the Bank has pledged certain assets as collateral.
Current wording
Average short-term borrowings for the second quarter were $108.9 million in 2026 compared to $81.1 million in 2025. The increase in the average balance from the prior year period is primarily a result of increases in customer balances. The weighted average interest rate for short-term borrowings during the second quarter increased during this time period from 0.87% in 2025 to 1.36% in 2026. The short-term borrowings of the Company are cash management accounts, which represent retail accounts with customers for which the Bank has pledged certain assets as collateral. The customer account balances changed based on the needs of the underlying retail customers.
Previous wording
The Company has a number of contingent funding alternatives available in addition to the large cash and cash equivalents position and the investment securities positions it maintains on its balance sheet. The Bank is a member of the Federal Home Loan Bank of New York (“FHLBNY”) and is an eligible borrower at the Federal Reserve Bank of New York (“FRBNY”) and has the ability to borrow utilizing securities and/or loans as collateral at either institution. The Bank does not utilize brokered deposits as a part of its funding strategy, but does incorporate them as a potential contingent funding source within its Asset/Liability Management Policy. Like other contingent funding sources, brokered deposits may be tested from time to time to ensure operational and market readiness. As of March 31, 2026 the Company also has borrowing capacity of $967 million available with the FHLBNY and $539 thousand available with the FRBNY. The borrowings capacity is secured by the loans pledged by the Company. As of March 31, 2026 and 2025, the Company had no outstanding borrowings with the FHLBNY or the FRBNY.
Current wording
The Company has a number of contingent funding alternatives available in addition to the large cash and cash equivalents position and the investment securities positions it maintains on its balance sheet. The Bank is a member of the Federal Home Loan Bank of New York (“FHLBNY”) and is an eligible borrower at the Federal Reserve Bank of New York (“FRBNY”) and has the ability to borrow utilizing securities and/or loans as collateral at either institution. The Bank does not utilize brokered deposits as a part of its funding strategy, but does incorporate them as a potential contingent funding source within its Asset/Liability Management Policy. Like other contingent funding sources, brokered CDs may be tested from time to time to ensure operational and market readiness. As of June 30, 2026 the Company also has borrowing capacity of $1.02 billion available with the FHLBNY and $530 thousand available with the FRBNY. The borrowing capacity is secured by the loans pledged by the Company. As of June 30, 2026 and December 31, 2025, the Company had no outstanding borrowings with the FHLBNY or the FRBNY.
Previous wording
Net interest income was up $4.3 million from $40.4 million in the first quarter of 2025 to $44.7 million in the first quarter of 2026, driven by loan growth at higher interest rates and less interest expense on deposit products, partially offset by lower investment interest income and a decrease in interest on Federal Funds sold and other short-term investments. The net interest spread was up 23 basis points to 2.44% in the first quarter of 2026 compared to the same period in 2025. As previously noted, the net interest margin was up 20 basis points to 2.84% for the first quarter of 2026 compared to the same period in 2025. Yields on earning assets increased in the first quarter of 2026 compared to the first quarter of 2025, and rates on interest-bearing liabilities decreased causing margin expansion. The Federal Reserve’s decision regarding whether to cut, raise or hold rates in upcoming meetings will have an effect on the Company’s ability to decrease deposit costs which should help margin in future quarters. During the first quarter of 2026, the Company was able to lower the rates offered on our time deposits while continuing to retain and grow that product.
Current wording
Net interest income increased by $3.8 million to $45.6 million in the second quarter of 2026 compared to the same period in 2025 driven by loan growth at higher interest rates and lower interest expense, partially offset by lower investment interest income and a decrease in interest income on Federal Funds sold and other short-term investments. The net interest spread was up 20 basis points to 2.48% in the second quarter of 2026 compared to the same period in 2025. As previously noted, the net interest margin was up 16 basis points to 2.87% for the second quarter of 2026 compared to the same period in 2025. Yields on earning assets increased in the second quarter of 2026 compared to the second quarter of 2025, and rates on interest-bearing liabilities decreased causing margin expansion. The Federal Reserve’s decision regarding whether to cut, raise, or hold rates in upcoming meetings will have an effect on the Company’s ability to continue to decrease deposit costs which will impact margin in future quarters. During the second quarter of 2026, the Company was able to lower the rates offered on our time deposits while continuing to retain and grow that product.
Previous wording
Nonperforming loans and foreclosed real estate: Total NPLs were $21.5 million and $20.7 million as of March 31, 2026 and December 31, 2025, respectively. There were no loans as of March 31, 2026 and December 31, 2025 that were past due 90 days or more and still accruing interest.
Current wording
Nonperforming loans and foreclosed real estate: Total NPLs were $21.8 million at June 30, 2026, compared to $20.7 million at December 31, 2025. There were no loans as of June 30, 2026 and December 31, 2025 that were past due 90 days or more and still accruing interest.
Previous wording
As of March 31, 2026, nonperforming loans primarily include a mix of commercial and residential loans. Of total nonperforming loans of $21.5 million as of March 31, 2026, $19.4 million were residential real estate loans, $2.0 million were commercial loans and mortgages and $63 thousand were installment loans, compared to $18.6 million, $2.0 million and $51 thousand, respectively, at December 31, 2025.
Current wording
At June 30, 2026, nonperforming loans primarily include a mix of commercial and residential loans. Of total nonperforming loans of $21.8 million at June 30, 2026, $19.7 million were residential real estate loans, $2.0 million were commercial loans and mortgages and $53 thousand were installment loans, compared to $18.6 million, $2.0 million and $51 thousand, respectively, at December 31, 2025.
Previous wording
A significant percentage of nonperforming loans are residential real estate loans, which are historically lower-risk than most other types of loans. Net recoveries were $43 thousand on residential real estate loans (including home equity lines of credit) for the first quarter of 2026 as compared to net charge-offs of $41 thousand in the first quarter of 2025. Management believes that these loans have been appropriately written down where required.
Current wording
A significant percentage of nonperforming loans are residential real estate loans, which are historically lower-risk than most other types of loans. Net recoveries were $72 thousand on residential real estate loans (including home equity lines of credit) for the second quarter of 2026 compared to net recoveries of $121 thousand for the second quarter of 2025. Management believes that these loans have been appropriately written down where required.
Previous wording
The Company originates loans throughout its branch franchise area. As of March 31, 2026, 64.5% of its gross loan portfolio balances were in New York State and the immediately surrounding areas (including New Jersey, Vermont and Massachusetts), and 35.5% were in Florida. Those figures compare to 64.3% and 35.7%, respectively at December 31, 2025.
Current wording
The Company originates loans throughout its branch franchise area. At June 30, 2026, 64.5% of its gross loan portfolio balances were in New York State and the immediately surrounding areas (including New Jersey, Vermont and Massachusetts), and 35.5% were in Florida. Those figures compare to 64.3% and 35.7%, respectively at December 31, 2025.
Previous wording
Economic conditions vary widely by geographic location. As a percentage of the total nonperforming loans as of March 31, 2026, 19.8% were to Florida borrowers, compared to 80.2% to borrowers in New York and surrounding areas. For the three months ended March 31, 2026, New York and surrounding areas experienced net recoveries of approximately $13 thousand, and Florida experienced net recoveries of $26 thousand.
Current wording
Economic conditions vary widely by geographic location. As a percentage of the total nonperforming loans as of June 30, 2026, 20.3% were to Florida borrowers, compared to 79.7% to borrowers in New York and surrounding areas. For the three-months ended June 30, 2026, New York and surrounding areas experienced net recoveries of approximately $93 thousand and there were net charge-offs of $5 thousand in Florida for the second quarter of 2026.
Previous wording
Loans individually evaluated for impairment are non-accrual loans delinquent greater than 180 days, non-accrual commercial loans, as well as loans classified as loan modifications to borrowers experiencing financial difficulty. There were $2.1 million of commercial mortgages and commercial loans classified as individually evaluated as of both March 31, 2026 and December 31, 2025. There were $24.3 million and 23.7 million of individually evaluated residential loans as of March 31, 2026 and December 31, 2025, respectively.
Current wording
Loans individually evaluated for impairment are non-accrual residential loans delinquent greater than 180 days, non-accrual commercial loans, as well as loans classified as loan modifications to borrowers experiencing financial difficulty. There were $2.0 million and $2.1 million of commercial mortgages and commercial loans classified as individually evaluated as of June 30, 2026 and December 31, 2025, respectively. There were $24.9 million of individually evaluated residential loans at June 30, 2026 compared to $23.7 million classified as individually evaluated at December 31, 2025.
Previous wording
Allowance for credit losses on loans: As of March 31, 2026, the Company utilized the Baseline scenario model of Moody’s economic scenarios and considered the uncertainty associated with the assumptions in the Baseline scenario, including continued actions taken by the Federal Reserve with regard to monetary policy and interest rates and the potential impact of those actions, and the potential impact of persistent high inflation on the economy. Outcomes in any or all of these factors could differ from the Baseline scenario utilized, and the Company incorporated qualitative considerations reflecting the risk of uncertain economic conditions, and for additional dimensions of risk that may not be captured in the quantitative model.
Current wording
As of June 30, 2026, the Company utilized the Baseline scenario model of Moody’s economic scenarios and considered the uncertainty associated with the assumptions in the baseline scenario, including continued actions taken by the Federal Reserve with regard to monetary policy and interest rates and the potential impact of those actions and the potential impact of persistent high inflation on the economy. Outcomes in any or all of these factors could differ from the baseline scenario utilized, and the Company incorporated qualitative considerations reflecting the risk of uncertain economic conditions, and for additional dimensions of risk that may not be captured in the quantitative model.
Previous wording
In the first quarter of 2026, the Company recorded a provision for credit losses of $950 thousand, which is the result of a provision for credit losses on loans of $750 thousand, and provision for credit losses on unfunded commitments of $200 thousand. The increase in the ACLL during the first quarter of 2026 was primarily a result of loan growth and economic conditions. The increase in the provision for credit losses on unfunded commitments is a result of an increase in unfunded loan commitments.
Current wording
In the second quarter of 2026, the Company recorded a provision for credit losses of $650 thousand, which is the result of a provision for credit losses on loans of $1.0 million, and benefit for credit losses on unfunded commitments of $350 thousand. The increase in the Allowance for Credit Losses on Loans (“ACLL”) during the second quarter of 2026 was primarily a result of loan growth. In the second quarter of 2025, the Company recorded a provision for credit losses of $650 thousand, which is all related to the provision for credit losses on loans, as there was no provision for credit losses on unfunded commitments. The Company recorded a provision for credit losses of $1.6 million for the six-months ended June 30, 2026 which is the result of a provision for credit losses on loans of $1.8 million and a benefit for credit losses on unfunded commitments of $150 thousand. For the six-months ended June 30, 2025 the Company recorded a provision for credit losses of $950 thousand which is the result of a provision for credit losses on loans of $750 thousand and a provision for unfunded commitments of $200 thousand.
Previous wording
The allocation of the allowance for credit losses on loans asof March 31, 2026 and December 31, 2025 was as follows:
Current wording
The allocation of the allowance for credit losses on loans as of June 30, 2026 and December 31, 2025 was as follows:
Previous wording
As of March 31, 2026, the allowance for credit losses on loans was $53.0 million, compared $52.2 million at December 31, 2025. The allowance represents 1.00% of the loan portfolio as of March 31, 2026 and 0.99% as of December 31, 2025. The coverage ratio, or the allowance for credit losses on loans to NPLs, was 246.9% and 252.5% as of March 31, 2026 and December 31, 2025, respectively. The ratio of non-performing loans to total loans was 0.41% and 0.39% as of March 31, 2026 and December 31, 2025, respectively.
Current wording
At June 30, 2026, the allowance for credit losses on loans was $54.1 million, compared to $52.2 million at December 31, 2025. The allowance represents 1.01% of the loan portfolio at June 30, 2026 and 0.99 % at December 31, 2025. The coverage ratio, or the allowance for credit losses on loans to NPLs, was 248.6% and 252.5% as of June 30, 2026 and December 31, 2025, respectively. The ratio of non-performing loans to total loans was 0.40% and 0.39% as of June 30, 2026 and December 31, 2025, respectively.
Previous wording
Net recoveries for the three-month period ended March 31, 2026 were $39 thousand and $258 thousand for the prior year period.
Current wording
Net recoveries for the three-month period ended June 30, 2026 were $88 thousand and $9 thousand for the prior year period.
Previous wording
During the first quarter of 2026, there were $19 thousand of commercial loan charge-offs, no residential loan charge-offs, and $26 thousand of consumer loan charge-offs compared with $4 thousand of commercial loan charge-offs, $80 thousand of residential loan charge-offs and $40 thousand of consumer loan charge-offs in the first quarter of 2025. During the first quarter of 2026 there were $40 thousand of commercial loan recoveries, $43 thousand of residential mortgage loan recoveries, and $1 thousand of consumer loan recoveries, compared to $320 thousand of commercial loan recoveries, $41 thousand for residential mortgage loan recoveries, and $21 thousand of consumer loan recoveries in the first quarter of 2025.
Current wording
During the second quarter of 2026, there were no commercial loan charge-offs or residential loan charge-offs, and $13 thousand of installment loan charge-offs, compared with no commercial loan charge-offs, $17 thousand of gross residential mortgage charge-offs, and $116 thousand of installment loan charge-offs in the second quarter of 2025. During the second quarter of 2026 there were no commercial loan recoveries, $72 thousand of residential mortgage recoveries, and $29 thousand for installment loan recoveries, compared to no commercial loan recoveries, $138 thousand of residential mortgage recoveries, and $4 thousand of installment loan recoveries in the second quarter of 2025.
Previous wording
The following table presents the net charge-off ratio for the three months ended March 31, 2026 and 2025:
Current wording
The following table presents the net charge-off (recovery) ratio for the three and six-months ended June 30, 2026 and 2025:
Previous wording
TrustCo seeks to obtain favorable sources of funding and to maintain prudent levels of liquid assets in order to satisfy varied liquidity demands. Management believes that TrustCo’s earnings performance and strong capital position enable the Company to easily secure new sources of liquidity. The Company actively manages its liquidity through target ratios established under its liquidity policies. Continual monitoring of both historical and prospective ratios allows TrustCo to employ strategies necessary to maintain adequate liquidity. Management has also defined various degrees of adverse liquidity situations which could potentially occur and has prepared appropriate contingency plans should such a situation arise. As noted, the Company has a number of contingent funding alternatives available in addition to the large cash and cash equivalents position and the investment securities positions it maintains on its balance sheet. As previously stated, the Bank is a member of the FHLBNY and is an eligible borrower at the FRBNY and has the ability to borrow utilizing securities and/or loans as collateral at either institution. The Bank does not utilize brokered deposits as a part of its funding strategy, but does incorporate them as a contingent funding source within its Asset/Liability Management Policy. Like other contingent funding sources, brokered deposits may be tested from time to time to ensure operational and market readiness. Management believes that the Company has adequate sources of liquidity to cover its contractual obligations and commitments over the next twelve months and beyond.
Current wording
TrustCo seeks to obtain favorable sources of funding and to maintain prudent levels of liquid assets in order to satisfy varied liquidity demands. Management believes that TrustCo’s earnings performance and strong capital position enable the Company to easily secure new sources of liquidity. The Company actively manages its liquidity through target ratios established under its liquidity policies. Continual monitoring of both historical and prospective ratios allows TrustCo to employ strategies necessary to maintain adequate liquidity. Management has also defined various degrees of adverse liquidity situations which could potentially occur and has prepared appropriate contingency plans should such a situation arise. As noted, the Company has a number of contingent funding alternatives available in addition to the large cash and cash equivalents position and the investment securities positions it maintains on its balance sheet. As previously stated, the Bank is a member of the FHLBNY and is an eligible borrower at the FRBNY and has the ability to borrow utilizing securities and/or loans as collateral at either institution. As previously stated, the Bank does not utilize brokered deposits as a part of its funding strategy, but does incorporate them as a contingent funding source within its Asset/Liability Management Policy. Like other contingent funding sources, brokered deposits may be tested from time to time to ensure operational and market readiness. Management believes that the Company has adequate sources of liquidity to cover its contractual obligations and commitments over the next twelve months and beyond.
Showing the first 40 of 51 pairs. Open the source sections for the rest.
Rearranged current paragraphs (7)
Current report — wording carried from elsewhere
The primary factors accounting for the change in net income for the six-months ended June 30, 2026 compared to the same period of the prior year were:
Current report — wording carried from elsewhere
Allowance for credit losses on loans:
Current report — wording carried from elsewhere
The following table indicates the impact on the fair value of capital assuming interest rates were to instantaneously increase by 100 bp, 200 bp, 300 bp and 400 bp or decrease by 100 bp, 200 bp, and 300 bp.
Current report — wording carried from elsewhere
include a capital conservation buffer of 2.50 percent
Current report — wording carried from elsewhere
I. DISTRIBUTION OF ASSETS, LIABILITIES AND SHAREHOLDERS' EQUITY:
Current report — wording carried from elsewhere
The following table summarizes the component distribution of the average balance sheet, related interest income and expense and the average annualized yields on interest earning assets and annualized rates on interest bearing liabilities of TrustCo (adjusted for tax equivalency) for each of the reported periods.
Current report — wording carried from elsewhere
Nonaccrual loans are included in loans for this analysis. The average balances of securities available for sale and held to maturity are calculated using amortized costs for these securities. Included in the average balance of shareholders' equity is the unrealized loss, net of tax, in the available for sale portfolio of $12.9 million in 2026 and $17.6 million in 2025. The subtotals contained in the following table are the arithmetic totals of the items contained in that category. Increases and decreases in interest income and expense due to both rate and volume have been allocated to the categories of variances (volume and rate) based on the percentage relationship of such variances to each other.