TrustCo Bank NY (TRST) investor relations material

Executive summary

• Net income for Q2 2026 was $17.0 million, up 12.8% year-over-year, with diluted EPS rising 24.1% to $0.98; six-month net income reached $33.3 million ($1.89 per share).

• Net interest income increased 9.2% to $45.6 million, driven by higher loan yields and deposit growth.

• Loan and investment portfolios repriced favorably, supported by growth in lower-cost deposits and higher loan originations.

• Maintained credit quality and conservative underwriting while executing disciplined capital deployment, including significant share buybacks.

• Expanded presence in Florida with a new regional headquarters, enhancing visibility and growth potential.

Financial highlights

• Net income for Q2 2026 was $17 million, up 12.8% from Q2 2025; net interest income rose to $45.6 million, a 9.2% increase year-over-year.

• Net interest margin improved to 2.87%, up 16 basis points year-over-year; efficiency ratio (GAAP) improved to 55.01%.

• Book value per share increased 4.8% to $38.53.

• Return on average assets was 1.04%; return on average equity was 10.22%.

• Allowance for credit losses on loans was 1.01% at June 30, 2026; nonperforming loans to total loans stood at 0.40%.

Outlook and guidance

• Management expects continued improvement in net income and net interest income, supported by asset repricing and disciplined loan production.

• Non-interest expense guidance for 2026 is $27.3–$27.8 million per quarter, reflecting a 3% increase due to salary adjustments.

• Expense increases in Q2 were partly non-recurring, with normalization expected in future quarters.

• Well-positioned to maintain strong net interest income despite potential Fed rate changes and economic volatility.

• The company maintains a conservative approach to underwriting and expects to leverage strong liquidity and capital for future growth.