10-Q · May 8, 2026
TrustCo reported strong Q1 2026 results with net income increasing 14.1% year-over-year to $16.3 million, translating to EPS of $0.91, reflecting a healthy growth momentum. Revenue reached $49.5 million, representing a…
Earnings analysis · 10-Q
TRST earnings analysis
Filed August 10, 2026 · Our reading of the company's report
The latest report
TrustCo delivered solid second-quarter earnings growth, with net income up to $17.0 million from $15.0 million and diluted EPS reaching $0.98 from $0.79. Core banking trends were favorable: net interest income increased…
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TrustCo delivered solid second-quarter earnings growth, with net income up to $17.0 million from $15.0 million and diluted EPS reaching $0.98 from $0.79. Core banking trends were favorable: net interest income increased 9.2% to $45.6 million, net interest margin expanded to 2.87%, and average loans grew $197.5 million. Offsetting concerns include higher nonperforming loans, wider unrealized securities losses, rising expenses and continued sensitivity to interest rates and macroeconomic conditions. No material changes to the risk factors from the 2025 Form 10-K were reported, and no numeric guidance was issued.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.98
What stood out
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Net income and EPS improved
Second-quarter net income increased to $17.0 million from $15.0 million in Q2 2025, while diluted EPS rose to $0.98 from $0.79. Return on average assets improved to 1.04% from 0.96%.
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NII and margin expanded
Net interest income rose $3.8 million, or 9.2%, to $45.6 million. Net interest margin expanded 16 basis points to 2.87%, driven by loan growth, higher loan yields and lower deposit costs.
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Loan and deposit growth continued
Average loans increased $197.5 million to $5.33 billion, with the average loan yield rising 16 basis points to 4.41%. Average interest-bearing deposits grew $169.9 million to $4.85 billion while the rate paid declined to 1.80% from 1.93%.
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First-half earnings momentum
Six-month net interest income increased $8.2 million, or 10.0%, to $90.3 million, and six-month diluted EPS increased to $1.89 from $1.54 in the prior-year period.
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Strong contingent liquidity
Liquidity remained substantial, including $1.02 billion of available FHLBNY borrowing capacity and $530 thousand of FRBNY capacity; the company had no outstanding borrowings with either facility at June 30, 2026.
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Share repurchases accelerated
The company repurchased 479,141 shares during Q2 at an average price of $50.76 for $24.3 million, with authorization remaining for 998,633 additional shares through the December 31, 2026 program expiration.
What to watch
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Nonperforming loans increased
Nonperforming loans increased to $21.8 million at June 30, 2026 from $20.7 million at December 31, 2025. The NPL ratio rose to 0.40% from 0.39%, although allowance coverage remained high at 248.6%.
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Unrealized securities losses widened
The available-for-sale securities portfolio carried a $18.9 million net unrealized loss at June 30, 2026, compared with $16.2 million at December 31, 2025, reflecting the higher-rate environment.
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Yield-curve and deposit-cost risk
Interest-rate sensitivity remains material: the 10-year/2-year Treasury spread narrowed to 0.46% in Q2 2026 from 0.62% in Q1, and management said future Federal Reserve rate decisions will affect the ability to reduce deposit costs and sustain margin expansion.
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Capital base declined
Consolidated shareholders' equity declined to $656.0 million from $692.8 million at June 30, 2025, while the consolidated CET1 ratio fell to 17.118% from 18.393% at December 31, 2025. The company remains above regulatory minimums.
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Operating expenses rose
Noninterest expense increased $2.1 million to $28.3 million in Q2, primarily from higher salaries, employee benefits and other expenses, compared with $26.2 million in Q2 2025.
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Macro and credit volatility
Management identifies continued economic uncertainty from tariffs, Middle East tensions, increased oil prices and labor-market volatility. It states that deterioration in housing prices or unemployment could increase credit risk and classified or nonperforming loans; total Q2 provision for credit losses was $650 thousand.
Management's outlook
No numeric EPS or revenue guidance was provided. Management expects profitable balance-sheet growth and states that market volatility could affect the balance sheet and income statement for the remainder of 2026; qualitative expectations for sustainable net-interest-income and net-income improvement were unchanged from the prior outlook.
Earlier filings 4
10-K · March 16, 2026
TrustCo positions itself as a community-focused bank with scale in its core markets (stating $6.4 billion in total assets and $5.6 billion in deposits as of December 31, 2025) and a large local branch footprint (134…
10-Q · May 9, 2025
TrustCo reported Q1 2025 net revenue (net interest income plus noninterest income) of $45,347,000 and diluted EPS of $0.75, up from $41,421,000 and $0.64 in Q1 2024. Net interest income rose to $40,373,000 and deposits…
10-Q · November 8, 2024
TrustCo reported Q3 results with diluted EPS of $0.68 and net income of $12,875,000, but earnings and income before taxes declined versus the year‑ago quarter. Net interest income fell to $38,671,000 while noninterest…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.