TrustCo Bank NY (TRST) investor relations material

Executive summary

• Net income for Q2 2026 rose 12.8% year-over-year to $17 million, with diluted EPS up 24.1% to $0.98.

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

• Average loans and deposits both grew 3.8% year-over-year, reflecting balanced expansion.

• Book value per share climbed 4.8% to $38.53, and the company repurchased 10.5% of outstanding shares in the first half of 2026.

• Asset quality remained strong, with stable credit metrics and conservative underwriting.

Financial highlights

• Net interest margin expanded to 2.87%, up 16 basis points sequentially and from 2.71% year-over-year.

• Return on average assets was 1.04% for Q2 2026, up from 0.96% a year earlier.

• Return on average equity improved to 10.22% from 9.66% year-over-year.

• Efficiency ratio (GAAP) improved to 55.01% from 56.27% year-over-year.

• Allowance for credit losses on loans to total loans was 1.01%, with a coverage ratio of 248.6%.

Outlook and guidance

• 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.

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

• The company is on pace to complete the repurchase of 15.8% of outstanding shares by year-end 2026.

• Loan and deposit growth, along with strong liquidity, are expected to drive long-term shareholder value.