TrustCo Bank Corp NY Earnings Summary — Q1 FY2026

• Net interest income rose to $44.7 million from $40.4 million year-over-year, driven significantly by interest and fees on loans.
• The provision for credit losses was increased to $950k from $300k in the prior year period, reflecting a more cautious credit outlook.
• Total deposits grew to $5.65 billion, with Time Deposits showing the strongest growth at $2.25 billion compared to $2.14 billion at year-end.
• The company aggressively repurchased 522,226 treasury shares during the quarter for approximately $23.9 million.
• Loan portfolio growth continued steadily, reaching $5.29 billion, focused primarily on 1-to-4 family residential mortgages.
• Non-interest expenses remained well-controlled, increasing only 2.5% YoY to $27.0 million despite inflationary pressures.
• Net income per share saw a significant 21% boost YoY, aided in part by the reduced share count from buybacks.
• Asset quality remains a focus, with the allowance for credit losses rising to $53.0 million.

Management did not provide explicit quantitative guidance for FY2026 but emphasized a focus on the 'Home Town Bank' strategy, maintaining asset quality, and managing interest rate cycle sensitivity through traditional residential lending.

Improving

Earnings performance has rebounded significantly from 2024 lows, with expanding net interest income and effective capital return via increased dividends and buybacks.

The outlook remains stable with a focus on navigating the interest rate environment. The company's heavy concentration in residential mortgages provides a predictable but rate-sensitive income stream, while high liquidity (724.9M in Fed Funds sold) offers flexibility for future lending or investment.