TrustCo Bank 第二季純利升24%至1700萬美元 淨息差擴闊16基點

EX-99.A
5
ef20078312_ex99-a.htm
EXHIBIT 99.A

 
 
 
 

  Exhibit 99(a)
 

 
 

   

 
 
 5 Sarnowski Drive, Glenville, New York, 12302
 

 
 
 
 News Release
 

 
 

 
    

 
 
 Subsidiary:
 

 
 
 
 Trustco Bank
 

 
 
 
 Nasdaq -- TRST
 

 
 

 
 
  
 

 
 
  
 

 
 
  
 

 
 

 
 
 
 Contact:
 

 
 
 
 Robert Leonard
 

 
 
  
 

 
 

 
 
  
 

 
 
 
 Executive Vice President
 

 
 
  
 

 
 

 
 
  
 

 
 
 
 (518) 381-3693
 

 
 
  
 

 
 

  

 FOR IMMEDIATE RELEASE:
 
 
 

 TrustCo Reports 12.8% Increase in Net Income for the Second Quarter of 2026
 

 to $17 Million
 
 
 

 Executive Snapshot:
 
 
 

 Financial results:
 

 
 ●
 

 
 Key metrics for the second quarter of 2026 compared to the second quarter of 2025:
 

 

 
 ■
 

 
 Diluted earnings per share of $0.98 increased 24.1% compared to $0.79
 

 

 
 ■
 

 
 Net interest income of $45.6 million, up 9.2% from $41.7 million
 

 

 
 ■
 

 
 Net interest margin of 2.87%, up 16 basis points from 2.71%
 

 

 
 ■
 

 
 Net income of $17.0 million increased 12.8% compared to $15.0 million
 

 

 
 ■
 

 
 Average loans increased $197.5 million, or 3.8%
 

 

 
 ■
 

 
 Average deposits increased $208.6 million, or 3.8%
 

 
 
 

 
 ●
 

 
 Capital position and Stock Repurchase Program:
 

 

 
 ■
 

 
 Book value per share as of June 30, 2026 was $38.53, up from $36.75 as of June 30, 2025
 

 

 
 ■
 

 
 Purchased 10.5% of TrustCo outstanding common stock under the 2026 and 2025 Stock Repurchase Programs through the acquisition of over one million shares in the first half of 2026, following the purchase of one million shares in 2025, reinforcing a disciplined long-term capital allocation strategy
 

 

 
 ■
 

 
 On pace to complete the repurchase of a total of three million shares, or 15.8%, of TrustCo common stock by the end of 2026
 

 
 
 

 Glenville, New York – July 21, 2026
 
 
 

 TrustCo Bank Corp NY (TrustCo, NASDAQ: TRST) today announced financial results for the second quarter of 2026 highlighted by a continued increase in net interest income and sustained loan and deposit growth across core lending and deposit categories. For the three months ended June 30, 2026, net interest income increased 9.2% year over year to $45.6 million. This was driven by the ongoing asset repricing across our loan portfolio at higher yields and effective execution of deposit growth and pricing strategies. For the three months ended June 30, 2026, net interest margin expanded to 2.87% from 2.71% in the prior year period. This resulted in second quarter 2026 net income of $17.0 million, or $0.98 diluted earnings per share, compared to net income of $15.0 million, or $0.79 diluted earnings per share, for the second quarter 2025; and net income of $33.3 million, or $1.89 diluted earnings per share, for the six months ended June 30, 2026, compared to net income of $29.3 million, or $1.54 diluted earnings per share, for the six months ended June 30, 2025.
 
 
 

 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.
 

 Page | 1

 

 

 Overview
 
 
 

 Chairman, President, and CEO, Robert J. McCormick, said “We are very pleased to report another quarter of stellar results. As expected, we have seen favorable repricing in our loan portfolio that has contributed to improving net interest margin. We also have seen steady growth in loans and deposits – each of which is up 3.8% year over year. This kind of symmetry in loan and deposit growth represents the ongoing realization of one of our long-time business goals. We take the deposits that we gather and lend those funds right back out into the communities that we serve. We also are realizing success on our long-term capital allocation strategy which has seen the company repurchase two million shares over the past year and a half, and we are on pace to purchase another million shares by the end of this year, which would bring the total for 2025-2026 to nearly 16% of TrustCo’s outstanding shares. We also are pleased to announce that we have moved into the building that we repurposed into our regional corporate headquarters in historic Longwood, Florida, which speaks volumes about our commitment to that great state.”
 
 
 

 Details
 
 
 

 We have continued to see meaningful net income and net interest income improvement. Management expects these improvements to remain sustainable. The loan and investment portfolios of TrustCo Bank (the “Bank”) continue to reprice upward as lower yielding assets mature and are replaced with higher rate loan originations and investment purchases, driving steady improvement in overall asset yields. We believe that this ongoing repricing reflects disciplined loan production aligned with current market conditions. Complementing this, the Bank maintains a strong liquidity position, driven by deposit growth while decreasing funding costs which underscores the Bank's disciplined relationship banking strategy and the value customers place on stability and service. We believe that these factors position the Bank to generate continued net income and net interest income growth in the coming quarters and deliver long-term value to shareholders. Net interest income was $45.6 million for the second quarter of 2026, an increase of $3.8 million, or 9.2%, compared to the second quarter of 2025, driven by loan growth at higher interest rates and a decrease in interest expense. The net interest margin for the second quarter of 2026 was 2.87%, up 16 basis points from 2.71% in the second quarter of 2025. The yield on interest-earning assets increased to 4.27% in the second quarter of 2026, up 8 basis points from 4.19% in the second quarter of 2025. The cost of interest bearing liabilities decreased to 1.79% in the second quarter of 2026, down from 1.91% in the second quarter of 2025.
 
 
 

 Average loans were up $197.5 million, or 3.8%, in the second quarter of 2026 over the same period in 2025. Average residential loans and Home Equity Credit Lines (HECLs), our primary lending focus, were up $142.0 million, or 3.2%, and $44.8 million, or 10.4%, respectively, in the second quarter of 2026 over the same period in 2025. Average commercial loans also increased $13.4 million, or 4.4%, in the second quarter of 2026 over the same period in 2025. Loan growth in the second quarter of 2026 remained steady, driven by continued strength in core relationship lending. Credit quality metrics were stable. Following this period of sustained growth, TrustCo remains confident in the quality of its loan portfolio amid broader market concerns. We believe that our continued focus on strong underwriting within our loan portfolio and conservative lending standards positions us to manage credit risk effectively in the current environment. The consistent growth in the loan portfolio will likely enhance net interest income in the quarters ahead. Average deposits were up $208.6 million, or 3.8%, for the second quarter of 2026 compared to the second quarter of 2025, primarily as a result of an increase in time deposits, interest bearing checking accounts, and demand deposits. The Bank’s ongoing emphasis on relationship banking, combined with competitive product offerings and digital capabilities, has contributed to a broadening deposit base that supports ongoing loan growth and expansion.
 
 
 

 Page | 2

 

 

 During the second quarter of 2026, the Bank remained focused on capital deployment and allocation, guided by a disciplined framework, with share repurchases continuing to serve as a key tool to enhance shareholder value. This reflects our confidence in the long-term strength of the franchise and our focus on capital optimization. For the six months ended June 30, 2026, TrustCo repurchased one million shares, or 5.6%, of TrustCo’s outstanding common stock under its previously announced stock repurchase program, which authorizes TrustCo to repurchase up to two million shares, or 11.1%, of TrustCo’s outstanding common stock in 2026. We continue to believe that our approach ensures every dollar of capital is working to generate solid returns, strengthen customer relationships, and enhance shareholder value. As of June 30, 2026, our equity to asset ratio was 10.05%, compared to 10.91% as of June 30, 2025. Book value per share as of June 30, 2026 was $38.53, up 4.8% compared to $36.75 as of a year earlier.
 
 
 

 Asset quality remains strong and has been consistent over the past twelve months. TrustCo recorded a provision for credit losses of $650 thousand in the second quarter of 2026, flat compared to the same period in 2025. For the three months ended June 30, 2026, the provision for credit losses was the result of a provision for credit losses on loans of $1.0 million and a benefit for credit losses on unfunded commitments of $350 thousand. The ratio of allowance for credit losses on loans to total loans was 1.01% and 0.99% as of June 30, 2026 and June 30, 2025, respectively. The allowance for credit losses on loans was $54.1 million as of June 30, 2026, compared to $51.3 million as of June 30, 2025. Nonperforming loans (NPLs) were $21.8 million as of June 30, 2026, compared to $17.9 million as of June 30, 2025. NPLs were 0.40% and 0.35% of total loans as of June 30, 2026 and June 30, 2025, respectively. The coverage ratio, or allowance for credit losses on loans to NPLs, was 248.6% as of June 30, 2026, compared to 286.2% as of June 30, 2025. Nonperforming assets (NPAs) were $23.0 million as of June 30, 2026, compared to $19.0 million as of June 30, 2025. While NPLs increased modestly during the quarter, asset quality metrics remain stable and well covered by reserves, reflecting the Bank’s conservative underwriting standards.
 
 
A conference call to discuss second quarter
2026 results will be held at 9:00 a.m. Eastern Time
on July 22, 2026.  Those wishing to participate in the call
may dial toll-free for North America 1-833-461-5787,
Meeting ID 562 250 806.  The call will also be audio webcast at https://events.q4inc.com/attendee/562250806. The webcast replay will be available for one year
at the same link. 

 

 About TrustCo Bank Corp NY
 
 
 

 TrustCo Bank Corp NY is a $6.5 billion savings and loan holding company and through its subsidiary, Trustco Bank, operated 132 offices in New York, New Jersey, Vermont, Massachusetts, and Florida as of June 30, 2026.
 
 
 

 In addition, the Bank’s Wealth Management Department offers a full range of investment services, retirement planning and trust and estate administration services. The common shares of TrustCo are traded on the NASDAQ Global Select Market under the symbol TRST.
 
 
 

 Page | 3

 

 

 Forward-Looking Statements
 
 
 

 All statements in this news release and the related earnings call that are not historical are forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as "anticipate," "intend," "plan," "goal," "seek," "believe," "project," "estimate," "expect," "strategy," "future," "likely," "may," "should," "will" and similar references to future development, results or periods. Examples of forward-looking statements include, among others, statements we make regarding our expectations for our future performance, including our expectations regarding net income, net interest income and shareholder value for future quarters; the anticipated impact of our focus on underwriting within our loan portfolio and conservative lending standards; the expected impact of the continued repricing of our loan and investment portfolios, as well as our liquidity position, on our future net interest income and overall asset yields; the amount of shares that we expect to repurchase in 2026; and the anticipated effects of our capital management strategy, including our stock repurchase program. Forward-looking statements are based on management’s current expectations, as well as certain assumptions and estimates made by, and information available to, management at the time the statements are made. Such forward-looking statements are subject to factors and uncertainties that could cause TrustCo’s actual results to differ materially from the views, beliefs and projections expressed in such statements. TrustCo wishes to caution readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. The following important factors, among others, in some cases have affected and in the future could affect TrustCo’s actual results and could cause TrustCo’s actual financial performance to differ materially from that expressed in any forward-looking statement: future changes in interest rates; external economic factors, such as changes in monetary policy, ongoing inflationary pressures and continued elevated prices; exposure to credit risk in our lending activities; the risk of weakness in residential real estate markets; our increasing commercial loan portfolio; the sufficiency of our allowance for credit losses on loans to cover actual loan losses; our ability to meet the cash flow requirements of our depositors or borrowers or to meet our operating cash needs to fund corporate expansion and other activities; claims and litigation pertaining to fiduciary responsibility and lender liability; the enforcement of federal cannabis laws and regulations and its impact on our ability to provide services in the cannabis industry; our dependency upon the services of the management team; our disclosure controls and procedures’ ability to prevent or detect errors or acts of fraud; the adequacy of our business continuity and disaster recovery plans; the effectiveness of our risk management framework; the impact of any expansion by us into new lines of business or new products and services; the rising popularity of alternative financial products, including fintech platforms, cryptocurrencies, money market funds, and digital wallets; an increase in the prevalence of fraud and other financial crimes; the impact of severe weather events and climate change on us and the communities we serve, including societal responses to climate change; environmental, social and governance risks and their impact on our reputation and relationships; the chance of a prolonged economic downturn, especially one affecting our geographic market area; instability in global economic conditions and geopolitical matters, including as a result of the conflict between the United States (U.S.) and Iran, as well as volatility in financial markets; the chance of a downgrade in the credit rating of the U.S. government or a default by the U.S. government; the soundness of other financial institutions; U.S. government shutdowns; fluctuations in the trust wealth management fees we receive as a result of investment performance; the impact of regulatory capital rules on our growth; changes in laws and regulations, including changes in cybersecurity or privacy regulations; our compliance with laws designed to protect consumers, including the Community Reinvestment Act and fair lending laws; restrictions on data collection and use; our compliance with the USA PATRIOT Act, Bank Secrecy Act, and other laws and regulations that could result in material fines or sanctions; changes in tax laws; limitations on our ability to pay dividends; TrustCo Realty Corp.’s ability to qualify as a real estate investment trust; changes in accounting standards; competition within our market areas; consumers and businesses’ use of non-banks to complete financial transactions; our reliance on third-party service providers; the impact of data breaches and cyber-attacks; the development and use of artificial intelligence; the impact of a failure in or breach of our operational or security systems or infrastructure, or those of third parties; the impact of an unauthorized disclosure of sensitive or confidential client or customer information; the impact of interruptions in the effective operation of our computer systems; the impact of anti-takeover provisions in our organizational documents; the impact of the manner in which we allocate capital; the impact of the actions of activist shareholders; and other risks and uncertainties set forth in our public filings made with the Securities and Exchange Commission (the “SEC”), including our Annual Report on Form 10-K for the year ended December 31, 2025, our Quarterly Report on Form 10-Q for the first quarter of 2026, our upcoming quarterly report on Form 10-Q for the second quarter of 2026, and future reports to be filed with the SEC. The forward-looking statements contained in this news release represent TrustCo management’s judgment as of the date of this news release. TrustCo disclaims, however, any intent or obligation to update forward-looking statements, either as a result of future developments, new information or otherwise, except as may be required by law.
 
 

 Page | 4

 

 

TRUSTCO BANK CORP NY
GLENVILLE, NY
 
FINANCIAL HIGHLIGHTS
 
(dollars in thousands, except per share data)
(Unaudited)

 
  

    
  
    
  
    
  
 

 
  

 Three months ended 
  
 

 
  

  

 6/30/2026
 
  
  

 3/31/2026
 
  
  

 6/30/2025
 
  
 

 
 
 
 Summary of operations
 

 

    
  
    
  
    
  
 

 
 
 
 Net interest income
 

 

  $45,590
  
  $44,708
  
  $41,746
  
 

 
 
 
 Provision for credit losses
 

 

   650
  
   950
  
   650
  
 

 
 
 
 Net gains on equity securities
 

 

   844
  
    -
  
    -
  
 

 
 
 
 Noninterest income, excluding net gains on equity securities
 

 

   5,068
  
   4,841
  
   4,852
  
 

 
 
 
 Noninterest expense
 

 

   28,333
  
   26,982
  
   26,223
  
 

 
 
 
 Net income
 

 

   16,965
  
   16,285
  
   15,039
  
 

  

    
  
    
  
    
  
 

 
 
 
 Per share
 

 

    
  
    
  
    
  
 

 
 
 
 Net income per share:
 

 

    
  
    
  
    
  
 

 
 
 
 - Basic
 

 

  $0.98
  
  $0.91
  
  $0.79
  
 

 
 
 
 - Diluted
 

 

   0.98
  
   0.91
  
   0.79
  
 

 
 
 
 Cash dividends
 

 

   0.38
  
   0.38
  
   0.36
  
 

 
 
 
 Book value at period end
 

 

   38.53
  
   38.32
  
   36.75
  
 

 
 
 
 Market price at period end
 

 

   54.91
  
   43.78
  
   33.42
  
 

  

    
  
    
  
    
  
 

 
 
 
 At period end
 

 

    
  
    
  
    
  
 

 
 
 
 Full time equivalent employees
 

 

   742
  
   740
  
   733
  
 

 
 
 
 Full service banking offices
 

 

   132
  
   133
  
   136
  
 

  

    
  
    
  
    
  
 

 
 
 
 Performance ratios
 

 

    
  
    
  
    
  
 

 
 
 
 Return on average assets
 

 

   1.04
 %
   1.02
 %
   0.96
 %
 

 
 
 
 Return on average equity
 

 

   10.22
  
   9.66
  
   8.73
  
 

 
 
 
 Efficiency ratio (GAAP)
 

 

   55.01
  
   54.46
  
   56.27
  
 

 
 
 
 Adjusted Efficiency ratio (1)
 

 

   55.71
  
   54.35
  
   55.15
  
 

 
 
 
 Net interest spread
 

 

   2.48
  
   2.44
  
   2.28
  
 

 
 
 
 Net interest margin
 

 

   2.87
  
   2.84
  
   2.71
  
 

 
 
 
 Dividend payout ratio
 

 

   38.36
  
   41.40
  
   45.27
  
 

  

    
  
    
  
    
  
 

 
 
 
 Capital ratios at period end
 

 

    
  
    
  
    
  
 

 
 
 
 Consolidated equity to assets (GAAP)
 

 

   10.05
 %
   10.31
 %
   10.91
 %
 

 
 
 
 Consolidated tangible equity to tangible assets (1)
 

 

   10.05
 %
   10.30
 %
   10.91
 %
 

  

    
  
    
  
    
  
 

 
 
 
 Asset quality analysis at period end
 

 

    
  
    
  
    
  
 

 
 
 
 Nonperforming loans to total loans
 

 

   0.40
 %
   0.41
 %
   0.35
 %
 

 
 
 
 Nonperforming assets to total assets
 

 

   0.35
  
   0.35
  
   0.30
  
 

 
 
 
 Allowance for credit losses on loans to total loans
 

 

   1.01
  
   1.00
  
   0.99
  
 

 
 
 
 Coverage ratio (2)
 

 

   2.5
 x
   2.5
 x
   2.9
 x
 

  
 

 (1) Non-GAAP Financial Measure, see Non-GAAP Financial Measures Reconciliation.
 

 (2) Calculated as allowance for credit losses on loans divided by total nonperforming loans.
 

 Page | 5

 

 

FINANCIAL HIGHLIGHTS, Continued
 
(dollars in thousands, except per share data)
(Unaudited)
 

 
  

    
  
    
  
 

 
  

 Six Months Ended 
  
 

 
  

   

 06/30/26
 
  
   

 06/30/25
 
  
 

 
 
 
 Summary of operations
 

 

    
  
    
  
 

 
 
 
 Net interest income
 

 

  $90,298
  
  $82,119
  
 

 
 
 
 Provision for credit losses
 

 

   1,600
  
   950
  
 

 
 
 
 Net gains on equity securities
 

 

   844
  
    -  
  
 

 
 
 
 Noninterest income, excluding net gains on equity securities
 

 

   9,909
  
   9,826
  
 

 
 
 
 Noninterest expense
 

 

   55,315
  
   52,552
  
 

 
 
 
 Net income
 

 

   33,250
  
   29,314
  
 

 
  

    
  
    
  
 

 
 
 Per share
 

 

    
  
    
  
 

 
 
 
 Net income per share:
 

 

    
  
    
  
 

 
 
 
 - Basic
 

 

  $1.89
  
  $1.54
  
 

 
 
 
 - Diluted
 

 

   1.89
  
   1.54
  
 

 
 
 
 Cash dividends
 

 

   0.76
  
   0.72
  
 

 
 
 
 Book value at period end
 

 

   38.53
  
   36.75
  
 

 
 
 
 Market price at period end
 

 

   54.91
  
   33.42
  
 

 
  

    
  
    
  
 

 
 
 Performance ratios
 

 

    
  
    
  
 

 
 
 
 Return on average assets
 

 

   1.03
 %
   0.94
 %
 

 
 
 
 Return on average equity
 

 

   9.94
  
   8.61
  
 

 
 
 
 Efficiency ratio (GAAP)
 

 

   54.74
  
   57.16
  
 

 
 
 
 Adjusted Efficiency ratio (1)
 

 

   55.04
  
   56.56
  
 

 
 
 
 Net interest spread
 

 

   2.47
  
   2.24
  
 

 
 
 
 Net interest margin
 

 

   2.86
  
   2.68
  
 

 
 
 
 Dividend payout ratio
 

 

   39.85
  
   46.58
  
 

  
 

 (1) Non-GAAP Financial Measure, see Non-GAAP Financial Measures Reconciliation.
 

 Page | 6

 

 

CONSOLIDATED STATEMENTS OF INCOME
 
(dollars in thousands, except per share data)
(Unaudited)

  

 
  
    
     
     
     
      
 

 
  
   Three months ended  
 

 
  
 
 

 6/30/2026
   
 
 3/31/2026
 

 
   
 
 12/31/2025
 

 
   
 
 9/30/2025
 

 
   
 
 6/30/2025
 

  
 

 
 
 
 Interest and dividend income:
 

 
    
     
     
     
      
 

 
 
 
 Interest and fees on loans
 

 
  $58,757
   $57,565
   $56,886
   $55,953
   $54,557 
 

 
 
 
 Interest and dividends on securities available for sale:
 

 
    
     
     
     
      
 

 
 
 
 U. S. government sponsored enterprises
 

 
   111
    149
    350
    599
    614 
 

 
 
 
 State and political subdivisions      
 

 
   - 
    - 
    - 
    1
    -  
 

 
 
 
 Mortgage-backed securities and collateralized mortgage obligations - residential
 

 
   1,486
    1,469
    1,490
    1,583
    1,613 
 

 
 
 
 Corporate bonds
 

 
   776
    694
    536
    265
    210 
 

 
 
 
 Small Business Administration - guaranteed participation securities
 

 
   59
    63
    68
    72
    75 
 

 
 
 
 Other securities
 

 
   7
    8
    8
    7
    8 
 

 
 
 
 Total interest and dividends on securities available for sale
 

 
   2,439
    2,383
    2,452
    2,527
    2,520 
 

 
  
    
     
     
     
      
 

 
 
 
 Interest on held to maturity securities:    
 

 
    
     
     
     
      
 

 
 
 
 Mortgage-backed securities and collateralized mortgage obligations - residential
 

 
   44
    47
    50
    52
    54 
 

 
 
 
 Total interest on held to maturity securities
 

 
   44
    47
    50
    52
    54 
 

 
  
    
     
     
     
      
 

 
 
 
 Federal Home Loan Bank stock
 

 
   123
    126
    126
    125
    129 
 

 
  
    
     
     
     
      
 

 
 
 
 Interest on federal funds sold and other short-term investments
 

 
   6,344
    6,105
    6,580
    7,376
    7,212 
 

 
 
 
 Total interest income
 

 
   67,707
    66,226
    66,094
    66,033
    64,472 
 

 
  
    
     
     
     
      
 

 
 
 
 Interest expense:           
 

 
    
     
     
     
      
 

 
 
 
 Interest on deposits:          
 

 
    
     
     
     
      
 

 
 
 
 Interest-bearing checking
 

 
   551
    533
    501
    483
    536 
 

 
 
 
 Savings
 

 
   703
    675
    715
    741
    733 
 

 
 
 
 Money market deposit accounts
 

 
   1,631
    1,552
    1,810
    2,065
    2,086 
 

 
 
 
 Time deposits
 

 
   18,863
    18,357
    18,993
    19,427
    19,195 
 

 
 
 
 Interest on short-term borrowings
 

 
   369
    401
    340
    198
    176 
 

 
 
 
 Total interest expense
 

 
   22,117
    21,518
    22,359
    22,914
    22,726 
 

 
  
    
     
     
     
      
 

 
 
 
 Net interest income
 

 
   45,590
    44,708
    43,735
    43,119
    41,746 
 

 
  
    
     
     
     
      
 

 
 
 
 Less: Provision for credit losses
 

 
   650
    950
    400
    250
    650 
 

 
 
 
 Net interest income after provision for credit losses      
 

 
   44,940
    43,758
    43,335
    42,869
    41,096 
 

 
  
    
     
     
     
      
 

 
 
 
 Noninterest income:
 

 
    
     
     
     
      
 

 
 
 
 Trustco Financial Services income
 

 
   1,980
    2,135
    1,950
    1,967
    1,818 
 

 
 
 
 Fees for services to customers
 

 
   2,487
    2,340
    2,192
    2,429
    2,266 
 

 
 
 
 Net gains on equity securities
 

 
   844
    - 
     - 
    - 
    -  
 

 
 
 
 Other
 

 
   601
    366
    288
    293
    768 
 

 
 
 
 Total noninterest income
 

 
   5,912
    4,841
    4,430
    4,689
    4,852 
 

 
  
    
     
     
     
      
 

 
 
 
 Noninterest expenses:
 

 
    
     
     
     
      
 

 
 
 
 Salaries and employee benefits
 

 
   13,047
    12,219
    12,242
    12,727
    11,876 
 

 
 
 
 Net occupancy expense
 

 
   4,381
    4,542
    4,592
    4,470
    4,518 
 

 
 
 
 Equipment expense
 

 
   2,082
    2,022
    2,219
    1,938
    1,918 
 

 
 
 
 Professional services
 

 
   1,968
    1,526
    1,083
    1,571
    1,886 
 

 
 
 
 Outsourced services
 

 
   2,704
    2,700
    2,100
    2,492
    2,460 
 

 
 
 
 Advertising expense
 

 
   586
    394
    629
    290
    304 
 

 
 
 
 FDIC and other insurance
 

 
   1,101
    1,153
    1,135
    1,052
    1,136 
 

 
 
 
 Other real estate expense, net
 

 
   112
    50
    161
    8
    522 
 

 
 
 
 Other
 

 
   2,352
    2,376
    2,549
    1,694
    1,603 
 

 
 
 
 Total noninterest expenses
 

 
   28,333
    26,982
    26,710
    26,242
    26,223 
 

 
  
    
     
     
     
      
 

 
 
 
 Income before taxes
 

 
   22,519
    21,617
    21,055
    21,316
    19,725 
 

 
 
 
 Income taxes
 

 
   5,554
    5,332
    5,490
    5,058
    4,686 
 

 
  
    
     
     
     
      
 

 
 
 
 Net income
 

 
  $16,965
   $16,285
   $15,565
   $16,258
   $15,039 
 

 
  
    
     
     
     
      
 

 
 
 
 Net income per common share:         
 

 
    
     
     
     
      
 

 
 
 
 - Basic
 

 
  $0.98
   $0.91
   $0.85
   $0.87
   $0.79 
 

 
  
    
     
     
     
      
 

 
 
 
 - Diluted
 

 
   0.98
    0.91
    0.85
    0.86
    0.79 
 

 
  
    
     
     
     
      
 

 
 
 
 Weighted average basic shares (in thousands)
 

 
   17,304
    17,813
    18,275
    18,755
    18,965 
 

 
 
 
 Weighted average diluted shares (in thousands)
 

 
   17,386
    17,876
    18,327
    18,805
    18,994 
 

  
 

 Page | 7

 

 

CONSOLIDATED STATEMENTS OF INCOME, Continued
 
(dollars in thousands, except per share data)
(Unaudited)
 

 
  
    
      
 

 
  
 

 Six Months Ended
 
 

 
  
   
 
 06/30/26
 

 
    
 
 06/30/25
 

  
 

 
 
 
 Interest and dividend income:          
 

 
    
      
 

 
 
 
 Interest and fees on loans
 

 
  $116,322
   $108,007 
 

 
 
 
 Interest and dividends on securities available for sale:          
 

 
    
      
 

 
 
 
 U. S. government sponsored enterprises
 

 
   260
    1,210 
 

 
 
 
 State and political subdivisions      
 

 
   - 
    -  
 

 
 
 
 Mortgage-backed securities and collateralized mortgage obligations - residential
 

 
   2,955
    3,096 
 

 
 
 
 Corporate bonds
 

 
   1,470
    470 
 

 
 
 
 Small Business Administration - guaranteed participation securities
 

 
   122
    156 
 

 
 
 
 Other securities
 

 
   15
    15 
 

 
 
 
 Total interest and dividends on securities available for sale
 

 
   4,822
    4,947 
 

 
  
    
      
 

 
 
 
 Interest on held to maturity securities:    
 

 
    
      
 

 
 
 
 Mortgage-backed securities-residential
 

 
   91
    111 
 

 
 
 
 Total interest on held to maturity securities
 

 
   91
    111 
 

 
  
    
      
 

 
 
 
 Federal Home Loan Bank stock
 

 
   249
    280 
 

 
  
    
      
 

 
 
 
 Interest on federal funds sold and other short-term investments
 

 
   12,449
    13,944 
 

 
 
 
 Total interest income
 

 
   133,933
    127,289 
 

 
  
    
      
 

 
 
 
 Interest expense:           
 

 
    
      
 

 
 
 
 Interest on deposits:          
 

 
    
      
 

 
 
 
 Interest-bearing checking
 

 
   1,084
    1,094 
 

 
 
 
 Savings
 

 
   1,378
    1,467 
 

 
 
 
 Money market deposit accounts
 

 
   3,183
    4,075 
 

 
 
 
 Time deposits
 

 
   37,220
    38,178 
 

 
 
 
 Interest on short-term borrowings
 

 
   770
    356 
 

 
 
 
 Total interest expense
 

 
   43,635
    45,170 
 

 
  
    
      
 

 
 
 
 Net interest income
 

 
   90,298
    82,119 
 

 
  
    
      
 

 
 
 
 Less: Provision for credit losses
 

 
   1,600
    950 
 

 
 
 
 Net interest income after provision for credit losses      
 

 
   88,698
    81,169 
 

 
  
    
      
 

 
 
 
 Noninterest income:
 

 
    
      
 

 
 
 
 Trustco Financial Services income
 

 
   4,115
    3,938 
 

 
 
 
 Fees for services to customers
 

 
   4,827
    4,911 
 

 
 
 
 Net gains on equity securities
 

 
   844
              -  
 

 
 
 
 Other
 

 
   967
    977 
 

 
 
 
 Total noninterest income
 

 
   10,753
    9,826 
 

 
  
    
      
 

 
 
 
 Noninterest expenses:
 

 
    
      
 

 
 
 
 Salaries and employee benefits
 

 
   25,266
    23,770 
 

 
 
 
 Net occupancy expense
 

 
   8,923
    9,072 
 

 
 
 
 Equipment expense
 

 
   4,104
    3,862 
 

 
 
 
 Professional services
 

 
   3,494
    3,612 
 

 
 
 
 Outsourced services
 

 
   5,404
    5,160 
 

 
 
 
 Advertising expense
 

 
   980
    665 
 

 
 
 
 FDIC and other insurance
 

 
   2,254
    2,324 
 

 
 
 
 Other real estate expense, net
 

 
   162
    550 
 

 
 
 
 Other
 

 
   4,728
    3,537 
 

 
 
 
 Total noninterest expenses
 

 
   55,315
    52,552 
 

 
  
    
      
 

 
 
 
 Income before taxes
 

 
   44,136
    38,443 
 

 
 
 
 Income taxes
 

 
   10,886
    9,129 
 

 
  
    
      
 

 
 
 
 Net income
 

 
  $33,250
   $29,314 
 

 
  
    
      
 

 
 
 
 Net income per common share:         
 

 
    
      
 

 
 
 
 - Basic
 

 
  $1.89
   $1.54 
 

 
  
    
      
 

 
 
 
 - Diluted
 

 
   1.89
    1.54 
 

 
  
    
      
 

 
 
 
 Weighted average basic shares (in thousands)
 

 
   17,557
    18,992 
 

 
 
 
 Weighted average diluted shares (in thousands)
 

 
   17,630
    19,019 
 

  
 

 Page | 8

 

 

 CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
 

  
 

 
 (dollars in thousands)
 

 
 (Unaudited)
 

  
 

 
                      

  

   

 6/30/2026
  

   

 3/31/2026
  

   

 12/31/2025
  

   

 9/30/2025
  

   

 6/30/2025
  
 

 
 
 
 ASSETS:
 

 

     

     

     

     

     
 

 
  

     

     

     

     

     
 

 
 
 
 Cash and due from banks
 

 

  $44,503 

  $43,165 

  $50,569 

  $42,026 

  $45,218 
 

 
 
 
 Federal funds sold and other short term investments
 

 

   652,136 

   724,943 

   679,858 

   653,530 

   668,373 
 

 
 
 
 Total cash and cash equivalents
 

 

   696,639 

   768,108 

   730,427 

   695,556 

   713,591 
 

 
  

     

     

     

     

     
 

 
 
 
 Securities available for sale:
 

 

     

     

     

     

     
 

 
 
 
 U. S. government sponsored enterprises
 

 

   14,956 

   14,887 

   31,772 

   51,557 

   71,241 
 

 
 
 
 States and political subdivisions
 

 

   9 

   9 

   9 

   18 

   18 
 

 
 
 
 Mortgage-backed securities and collateralized mortgage obligations - residential
 

 

   203,601 

   205,209 

   206,290 

   215,466 

   221,721 
 

 
 
 
 Small Business Administration - guaranteed participation securities
 

 

   10,153 

   10,796 

   11,710 

   12,330 

   12,945 
 

 
 
 
 Corporate bonds
 

 

   73,804 

   69,137 

   59,932 

   39,800 

   29,943 
 

 
 
 
 Other securities
 

 

   718 

   708 

   705 

   701 

   698 
 

 
 
 
 Total securities available for sale
 

 

   303,241 

   300,746 

   310,418 

   319,872 

   336,566 
 

 
  

     

     

     

     

     
 

 
 
 
 Held to maturity securities:
 

 

     

     

     

     

     
 

 
 
 
 Mortgage-backed securities and collateralized mortgage obligations-residential
 

 

   3,842 

   4,097 

   4,339 

   4,593 

   4,836 
 

 
 
 
 Total held to maturity securities
 

 

   3,842 

   4,097 

   4,339 

   4,593 

   4,836 
 

 
  

     

     

     

     

     
 

 
 
 
 Federal Reserve Bank and Federal Home Loan Bank stock
 

 

   6,756 

   6,601 

   6,601 

   6,601 

   6,601 
 

 
  

     

     

     

     

     
 

 
 
 
 Loans:
 

 

     

     

     

     

     
 

 
 
 
 Commercial
 

 

   322,439 

   316,763 

   313,443 

   311,491 

   314,273 
 

 
 
 
 Residential mortgage loans
 

 

   4,560,717 

   4,497,911 

   4,463,260 

   4,420,813 

   4,394,317 
 

 
 
 
 Home equity line of credit
 

 

   484,197 

   464,887 

   464,201 

   447,235 

   435,433 
 

 
 
 
 Installment loans
 

 

   9,882 

   10,617 

   11,556 

   12,231 

   12,678 
 

 
 
 
 Loans, net of deferred net costs
 

 

   5,377,235 

   5,290,178 

   5,252,460 

   5,191,770 

   5,156,701 
 

 
  

     

     

     

     

     
 

 
 
 
 Less: Allowance for credit losses on loans
 

 

   54,082 

   52,994 

   52,205 

   51,891 

   51,265 
 

 
 
 
 Net loans
 

 

   5,323,153 

   5,237,184 

   5,200,255 

   5,139,879 

   5,105,436 
 

 
  

     

     

     

     

     
 

 
 
 
 Bank premises and equipment, net
 

 

   42,273 

   41,071 

   40,707 

   39,718 

   38,129 
 

 
 
 
 Operating lease right-of-use assets
 

 

   33,872 

   33,305 

   33,638 

   35,291 

   36,322 
 

 
 
 
 Other assets
 

 

   115,137 

   116,767 

   114,315 

   107,514 

   106,894 
 

 
  

     

     

     

     

     
 

 
 
 
 Total assets
 

 

  $6,524,913 

  $6,507,879 

  $6,440,700 

  $6,349,024 

  $6,348,375 
 

 
  

     

     

     

     

     
 

 
 
 
 LIABILITIES:
 

 

     

     

     

     

     
 

 
 
 
 Deposits:
 

 

     

     

     

     

     
 

 
 
 
 Demand
 

 

  $824,717 

  $811,637 

  $814,908 

  $795,508 

  $784,351 
 

 
 
 
 Interest-bearing checking
 

 

   1,089,746 

   1,078,520 

   1,077,141 

   1,025,582 

   1,045,043 
 

 
 
 
 Savings accounts
 

 

   1,076,934 

   1,070,319 

   1,069,564 

   1,063,763 

   1,082,489 
 

 
 
 
 Money market deposit accounts
 

 

   438,799 

   442,760 

   457,389 

   455,488 

   467,087 
 

 
 
 
 Time deposits
 

 

   2,251,370 

   2,249,117 

   2,138,415 

   2,140,932 

   2,111,344 
 

 
 
 
 Total deposits
 

 

   5,681,566 

   5,652,353 

   5,557,417 

   5,481,273 

   5,490,314 
 

 
  

     

     

     

     

     
 

 
 
 
 Short-term borrowings
 

 

   108,382 

   112,930 

   120,054 

   97,749 

   82,370 
 

 
 
 
 Operating lease liabilities
 

 

   36,361 

   35,920 

   36,391 

   38,180 

   39,350 
 

 
 
 
 Accrued expenses and other liabilities
 

 

   42,595 

   35,756 

   40,249 

   39,809 

   43,536 
 

 
  

     

     

     

     

     
 

 
 
 
 Total liabilities
 

 

   5,868,904 

   5,836,959 

   5,754,111 

   5,657,011 

   5,655,570 
 

 
  

     

     

     

     

     
 

 
 
 
 SHAREHOLDERS' EQUITY:
 

 

     

     

     

     

     
 

 
 
 
 Capital stock
 

 

   20,119 

   20,119 

   20,119 

   20,103 

   20,097 
 

 
 
 
 Surplus
 

 

   261,283 

   260,808 

   260,333 

   259,980 

   259,490 
 

 
 
 
 Undivided profits
 

 

   499,997 

   489,540 

   479,996 

   471,314 

   462,158 
 

 
 
 
 Accumulated other comprehensive income, net of tax
 

 

   6,967 

   8,241 

   10,024 

   2,955 

   1,663 
 

 
 
 
 Treasury stock at cost
 

 

   (132,357) 

   (107,788) 

   (83,883) 

   (62,339) 

   (50,603) 
 

 
  

     

     

     

     

     
 

 
 
 
 Total shareholders' equity
 

 

   656,009 

   670,920 

   686,589 

   692,013 

   692,805 
 

 
  

     

     

     

     

     
 

 
 
 
 Total liabilities and shareholders' equity
 

 

  $6,524,913 

  $6,507,879 

  $6,440,700 

  $6,349,024 

  $6,348,375 
 

 
  

     

     

     

     

     
 

 
 
 
 Outstanding shares (in thousands)
 

 

   17,028 

   17,507 

   18,029 

   18,554 

   18,851 
 

  
 

 
 Page | 9

 

 

 NONPERFORMING ASSETS
 

  
 

 
 (dollars in thousands)
 

 
 (Unaudited)
 

  
 

 
                      

  

   

 6/30/2026
  
   

 3/31/2026
  
   

 12/31/2025
  
   

 9/30/2025
  
   

 6/30/2025
  
 

 
 
 
 Nonperforming Assets
 

 

     
     
     
     
     
 

 
  

     
     
     
     
     
 

 
 
 
 New York and other states*
 

 

     
     
     
     
     
 

 
 
 
 Loans in nonaccrual status:
 

 

     
     
     
     
     
 

 
 
 
 Commercial
 

 

  $1,964 
  $1,968 
  $1,990 
  $292 
  $684 
 

 
 
 
 Real estate mortgage - 1 to 4 family
 

 

   15,343 
   15,212 
   14,584 
   14,568 
   14,048 
 

 
 
 
 Installment
 

 

   37 
   43 
   29 
   30 
   34 
 

 
 
 
 Total nonperforming loans
 

 

   17,344 
   17,223 
   16,603 
   14,890 
   14,766 
 

 
 
 
 Other real estate owned
 

 

   1,234 
   1,364 
   1,394 
   1,234 
   1,136 
 

 
 
 
 Total nonperforming assets
 

 

  $18,578 
  $18,587 
  $17,997 
  $16,124 
  $15,902 
 

 
  

     
     
     
     
     
 

 
 
 
 Florida
 

 

     
     
     
     
     
 

 
 
 
 Loans in nonaccrual status:
 

 

     
     
     
     
     
 

 
 
 
 Commercial
 

 

  $

 -
  
  $

 -

  
  $

 -

  
  $

 -

  
  $

 -

  
 

 
 
 
 Real estate mortgage - 1 to 4 family
 

 

   4,392 
   4,222 
   4,047 
   3,574 
   3,132 
 

 
 
 
 Installment
 

 

   16 
   20 
   22 
   13 
   12 
 

 
 
 
 Total nonperforming loans
 

 

   4,408 
   4,242 
   4,069 
   3,587 
   3,144 
 

 
 
 
 Other real estate owned
 

 

   

 -
  
   

 -

  
   

 -

  
   

 -

  
   

 -

  
 

 
 
 
 Total nonperforming assets
 

 

  $4,408 
  $4,242 
  $4,069 
  $3,587 
  $3,144 
 

 
  

     
     
     
     
     
 

 
 
 
 Total
 

 

     
     
     
     
     
 

 
 
 
 Loans in nonaccrual status:
 

 

     
     
     
     
     
 

 
 
 
 Commercial
 

 

  $1,964 
  $1,968 
  $1,990 
  $292 
  $684 
 

 
 
 
 Real estate mortgage - 1 to 4 family
 

 

   19,735 
   19,434 
   18,631 
   18,142 
   17,180 
 

 
 
 
 Installment
 

 

   53 
   63 
   51 
   43 
   46 
 

 
 
 
 Total nonperforming loans
 

 

   21,752 
   21,465 
   20,672 
   18,477 
   17,910 
 

 
 
 
 Other real estate owned
 

 

   1,234 
   1,364 
   1,394 
   1,234 
   1,136 
 

 
 
 
 Total nonperforming assets
 

 

  $22,986 
  $22,829 
  $22,066 
  $19,711 
  $19,046 
 

 
  

     
     
     
     
     
 

 
 
 
 Quarterly Net (Recoveries) Chargeoffs
 

 

     
     
     
     
     
 

 
  

     
     
     
     
     
 

 
 
 
 New York and other states*
 

 

     
     
     
     
     
 

 
 
 
 Commercial
 

 

  $

 -
  
  $19 
  $

 -

  
  $

 -

  
  $

 -

  
 

 
 
 
 Real estate mortgage - 1 to 4 family
 

 

   (72) 
   (43) 
   (33) 
   (194) 
   (121) 
 

 
 
 
 Installment
 

 

   (21) 
   11 
   (13) 
   (2) 
   18 
 

 
 
 
 Total net chargeoffs (recoveries)
 

 

  $(93) 
  $(13) 
  $(46) 
  $(196) 
  $(103) 
 

 
  

     
     
     
     
     
 

 
 
 
 Florida
 

 

     
     
     
     
     
 

 
 
 
 Commercial
 

 

  $

 -

  
  $(40) 
  $

 -

  
  $

 -

  
  $

 -

  
 

 
 
 
 Real estate mortgage - 1 to 4 family
 

 

   

 -

  
   

 -

  
   

 -

  
   

 -

  
   

 -

  
 

 
 
 
 Installment
 

 

   5 
   14 
   32 
   20 
   94 
 

 
 
 
 Total net (recoveries) chargeoffs
 

 

  $5 
  $(26) 
  $32 
  $20 
  $94 
 

 
  

     
     
     
     
     
 

 
 
 
 Total
 

 

     
     
     
     
     
 

 
 
 
 Commercial
 

 

  $

 -
  
  $(21) 
  $

 -

  
  $

 -

  
  $

 -

  
 

 
 
 
 Real estate mortgage - 1 to 4 family
 

 

   (72) 
   (43) 
   (33) 
   (194) 
   (121) 
 

 
 
 
 Installment
 

 

   (16) 
   25 
   19 
   18 
   112 
 

 
 
 
 Total net (recoveries) chargeoffs
 

 

  $(88) 
  $(39) 
  $(14) 
  $(176) 
  $(9) 
 

 
  

     
     
     
     
     
 

 
 
 
 Asset Quality Ratios
 

 

     
     
     
     
     
 

 
  

     
     
     
     
     
 

 
 
 
 Total nonperforming loans (1)
 

 

  $21,752 
  $21,465 
  $20,672 
  $18,477 
  $17,910 
 

 
 
 
 Total nonperforming assets (1)
 

 

   22,986 
   22,829 
   22,066 
   19,711 
   19,046 
 

 
 
 
 Total net (recoveries) chargeoffs (2)
 

 

   (88) 
   (39) 
   (14) 
   (176) 
   (9) 
 

 
  

     
     
     
     
     
 

 
 
 
 Allowance for credit losses on loans (1)
 

 

   54,082 
   52,994 
   52,205 
   51,891 
   51,265 
 

 
  

     
     
     
     
     
 

 
 
 
 Nonperforming loans to total loans
 

 

   0.40%
   0.41%
   0.39%
   0.36%
   0.35%
 

 
 
 
 Nonperforming assets to total assets
 

 

   0.35%
   0.35%
   0.34%
   0.31%
   0.30%
 

 
 
 
 Allowance for credit losses on loans to total loans
 

 

   1.01%
   1.00%
   0.99%
   1.00%
   0.99%
 

 
 
 
 Coverage ratio (1)
 

 

   248.6%
   246.9%
   252.5%
   280.8%
   286.2%
 

 
 
 
 Annualized net (recoveries) chargeoffs to average loans (2)
 

 

   (0.01)%
   0.00%
   0.00%
   (0.01)%
   0.00%
 

 
 
 
 Allowance for credit losses on loans to annualized net chargeoffs (2)
 

 

   

 N/A
  
   

 N/A
  
   

 N/A
  
   

 N/A
  
   

 N/A
  
 

  
 

 
 * Includes New York, New Jersey, Vermont and Massachusetts.
 

 
 (1)  At period-end
 

 
 (2)  For the three-month period ended
 

  
 

 
 Page | 10

 

 

 DISTRIBUTION OF ASSETS, LIABILITIES AND SHAREHOLDERS' EQUITY -
 

 
 INTEREST RATES AND INTEREST DIFFERENTIAL
 

  
 

 
 
                         

 
 
 (dollars in thousands)
 

 

    
  
     
    
  

    
  
     
    
  
 

 
 
 
 (Unaudited)
 

 

 Three months ended 
  

 Three months ended 
  
 

 
  

 June 30, 2026 
  

 June 30, 2025 
  
 

 
  

   

 Average
 
  
   

 Interest
  
   

 Average
 
  

   

 Average
 
  
   

 Interest
  
   

 Average
 
  
 

 
  

   

 Balance
 
  
      
   

 Rate
 
  

   

 Balance
 
  
      
   

 Rate
 
  
 

 
 
 
 Assets
 

 

    
  
     
    
  

    
  
     
    
  
 

 
  

    
  
     
    
  

    
  
     
    
  
 

 
 
 
 Securities available for sale:
 

 

    
  
     
    
  

    
  
     
    
  
 

 
 
 
 U. S. government sponsored enterprises
 

 

  $14,980
  
  $111 
   2.97
 %

  $73,468
  
  $614 
   3.34
 %
 

 
 
 
 Mortgage backed securities and collateralized mortgage obligations - residential
 

 

   220,507
  
   1,486 
   2.68
  

   244,628
  
   1,613 
   2.62
  
 

 
 
 
 State and political subdivisions
 

 

   9
  
   0 
   6.77
  

   18
  
   0 
   6.77
  
 

 
 
 
 Corporate bonds
 

 

   71,842
  
   776 
   4.32
  

   25,707
  
   210 
   3.26
  
 

 
 
 
 Small Business Administration - guaranteed participation securities
 

 

   11,130
  
   59 
   2.13
  

   14,083
  
   75 
   2.14
  
 

 
 
 
 Other
 

 

   711
  
   7 
   3.94
  

   697
  
   8 
   4.59
  
 

 
  

    
  
     
    
  

    
  
     
    
  
 

 
 
 
 Total securities available for sale
 

 

   319,179
  
   2,439 
   3.06
  

   358,601
  
   2,520 
   2.81
  
 

 
  

    
  
     
    
  

    
  
     
    
  
 

 
 
 
 Federal funds sold and other short-term Investments
 

 

   687,216
  
   6,344 
   3.70
  

   648,457
  
   7,212 
   4.46
  
 

 
  

    
  
     
    
  

    
  
     
    
  
 

 
 
 
 Held to maturity securities:
 

 

    
  
     
    
  

    
  
     
    
  
 

 
 
 
 Mortgage backed securities and collateralized mortgage obligations - residential
 

 

   3,964
  
   44 
   4.47
  

   4,970
  
   54 
   4.37
  
 

 
  

    
  
     
    
  

    
  
     
    
  
 

 
 
 
 Total held to maturity securities
 

 

   3,964
  
   44 
   4.47
  

   4,970
  
   54 
   4.37
  
 

 
  

    
  
     
    
  

    
  
     
    
  
 

 
 
 
 Federal Home Loan Bank stock
 

 

   6,753
  
   123 
   7.29
  

   6,591
  
   129 
   7.83
  
 

 
  

    
  
     
    
  

    
  
     
    
  
 

 
 
 
 Commercial loans
 

 

   319,748
  
   4,505 
   5.64
  

   306,373
  
   4,261 
   5.56
  
 

 
 
 
 Residential mortgage loans
 

 

   4,529,147
  
   46,665 
   4.12
  

   4,387,181
  
   43,236 
   3.94
  
 

 
 
 
 Home equity lines of credit
 

 

   473,705
  
   7,385 
   6.25
  

   428,933
  
   6,830 
   6.39
  
 

 
 
 
 Installment loans
 

 

   9,864
  
   202 
   8.19
  

   12,523
  
   230 
   7.35
  
 

 
  

    
  
     
    
  

    
  
     
    
  
 

 
 
 
 Loans, net of unearned income
 

 

   5,332,464
  
   58,757 
   4.41
  

   5,135,010
  
   54,557 
   4.25
  
 

 
  

    
  
     
    
  

    
  
     
    
  
 

 
 
 
 Total interest earning assets
 

 

   6,349,576
  
  $67,707 
   4.27
  

   6,153,629
  
  $64,472 
   4.19
  
 

 
  

    
  
     
    
  

    
  
     
    
  
 

 
 
 
 Allowance for credit losses on loans
 

 

   (53,380
 ) 
     
    
  

   (50,777
 ) 
     
    
  
 

 
 
 
 Cash & non-interest earning assets
 

 

   220,854
  
     
    
  

   204,006
  
     
    
  
 

 
  

    
  
     
    
  

    
  
     
    
  
 

 
  

    
  
     
    
  

    
  
     
    
  
 

 
 
 
 Total assets
 

 

  $6,517,050
  
     
    
  

  $6,306,858
  
     
    
  
 

 
  

    
  
     
    
  

    
  
     
    
  
 

 
  

    
  
     
    
  

    
  
     
    
  
 

 
 
 
 Liabilities and shareholders' equity
 

 

    
  
     
    
  

    
  
     
    
  
 

 
  

    
  
     
    
  

    
  
     
    
  
 

 
 
 
 Deposits:
 

 

    
  
     
    
  

    
  
     
    
  
 

 
 
 
 Interest bearing checking accounts
 

 

  $1,085,204
  
  $551 
   0.20
 %

  $1,039,242
  
  $536 
   0.21
 %
 

 
 
 
 Money market accounts
 

 

   442,104
  
   1,631 
   1.48
  

   470,824
  
   2,086 
   1.78
  
 

 
 
 
 Savings
 

 

   1,073,370
  
   703 
   0.26
  

   1,087,467
  
   733 
   0.27
  
 

 
 
 
 Time deposits
 

 

   2,252,095
  
   18,863 
   3.36
  

   2,085,329
  
   19,195 
   3.69
  
 

 
  

    
  
     
    
  

    
  
     
    
  
 

 
 
 
 Total interest bearing deposits
 

 

   4,852,773
  
   21,748 
   1.80
  

   4,682,862
  
   22,550 
   1.93
  
 

 
 
 
 Short-term borrowings
 

 

   108,910
  
   369 
   1.36
  

   81,055
  
   176 
   0.87
  
 

 
  

    
  
     
    
  

    
  
     
    
  
 

 
 
 
 Total interest bearing liabilities
 

 

   4,961,683
  
  $22,117 
   1.79
  

   4,763,917
  
  $22,726 
   1.91
  
 

 
  

    
  
     
    
  

    
  
     
    
  
 

 
 
 
 Demand deposits
 

 

   816,688
  
     
    
  

   777,956
  
     
    
  
 

 
 
 
 Other liabilities
 

 

   72,604
  
     
    
  

   73,903
  
     
    
  
 

 
 
 
 Shareholders' equity
 

 

   666,075
  
     
    
  

   691,082
  
     
    
  
 

 
  

    
  
     
    
  

    
  
     
    
  
 

 
 
 
 Total liabilities and shareholders' equity
 

 

  $6,517,050
  
     
    
  

  $6,306,858
  
     
    
  
 

 
  

    
  
     
    
  

    
  
     
    
  
 

 
 
 
 Net interest income
 

 

    
  
  $45,590 
    
  

    
  
  $41,746 
    
  
 

 
  

    
  
     
    
  

    
  
     
    
  
 

 
 
 
 Net interest spread
 

 

    
  
     
   2.48
 %

    
  
     
   2.28
 %
 

 
  

    
  
     
    
  

    
  
     
    
  
 

 
 
 
 Net interest margin (net interest income to total interest earning assets)
 

 

    
  
     
   2.87
 %

    
  
     
   2.71
 %
 

  
 

 
 Page | 11

 

 

 DISTRIBUTION OF ASSETS, LIABILITIES AND SHAREHOLDERS' EQUITY -
 

 
 INTEREST RATES AND INTEREST DIFFERENTIAL, Continued
 

  

 
 
 
 
 (dollars in thousands)
 

 
     

     
     
     

     
     
 

 
 
 
 (Unaudited)
 

 
 

 Six Months Ended
 
 

 Six Months Ended
 
 

 
  
 

 June 30, 2026
 
 

 June 30, 2025
 
 

 
  
   

 Average
  

   

 Interest
  
   

 Average
  
   

 Average
  

   

 Interest
  
   

 Average
  
 

 
  
   

 Balance
  

     
   

 Rate
  
   

 Balance
  

     
   

 Rate
  
 

 
 
 
 Assets
 

 
     

     
     
     

     
     
 

 
  
     

     
     
     

     
     
 

 
 
 
 Securities available for sale:
 

 
     

     
     
     

     
     
 

 
 
 
 U. S. government sponsored enterprises
 

 
 $21,088 

  260 
  2.47%
 $74,071 

  1,210 
  3.27%
 

 
 
 
 Mortgage backed securities and collateralized mortgage obligations - residential
 

 
   220,568 

   2,955 
   2.68 
   242,083 

   3,096 
   2.56 
 

 
 
 
 State and political subdivisions
 

 
   9 

   

 -
  
   6.77 
   18 

   0 
   6.77