TrustCo Bank NY (TRST) investor relations material

Executive summary

• Net income for Q1 2026 was $16.3 million ($0.91 per diluted share), up 14.1% year-over-year, with EPS rising 21.3% and return on average assets at 1.02% and return on average equity at 9.66%.

• Net interest income rose 10.7% to $44.7 million, driven by loan growth, higher yields, and disciplined deposit pricing.

• Loan portfolio reached an all-time high, with average loans up $158.9 million (3.1%) and repricing of older loans at higher rates boosting performance.

• The company maintained strong liquidity and capital positions, focusing on prudent underwriting and traditional banking.

• Share buyback program remains a key capital deployment strategy, with 522,226 shares (2.9% of outstanding) repurchased in Q1 2026.

Financial highlights

• Net income for Q1 2026 was $16.3 million, a 14.1% increase from Q1 2025.

• Net interest margin expanded to 2.84% (up 20 bps), and net interest spread increased to 2.44% year-over-year.

• Book value per share increased 6% to $38.32 as of March 31, 2026.

• Efficiency ratio improved to 54.46%, down from 58.06% a year ago.

• Dividend payout ratio was 41.40% for Q1 2026.

Outlook and guidance

• Management expects continued net interest income growth as loan and investment portfolios reprice upward.

• The bank is on pace to complete the repurchase of up to 11.1% of its common stock in 2026.

• Recurring non-interest expense for 2026 projected between $26.7-$27.3 million per quarter.

• Liquidity position remains strong, supporting future growth.

• The company anticipates maintaining strong liquidity and capital, with flexibility to adjust balance sheet growth as market conditions evolve.