# Trustco Bank Corp N Y: Form 10-Q for the period ended Jun 30, 2026

- Company: [Trustco Bank Corp N Y](/companies/trst.md) (CIK 357301)
- Form: 10-Q
- Filed: 2026-08-10
- Accepted by EDGAR: Aug 10, 2026, 13:23 ET
- Period: 2026-06-30
- Accession: 0001140361-26-031982
- Inline XBRL: yes
- Main document: https://www.sec.gov/Archives/edgar/data/357301/000114036126031982/ef20075475_10q.htm
- All documents and exhibits: https://www.sec.gov/Archives/edgar/data/357301/000114036126031982/

## Figures reported in this filing

Standardized XBRL line items for the period ended 2026-06-30.

| Line item | Period | Value | XBRL concept |
| --- | --- | ---: | --- |
| Income tax | 3 months, 2026-04-01 to 2026-06-30 | $5.6m | us-gaap:IncomeTaxExpenseBenefit |
| Income tax | 6 months, 2026-01-01 to 2026-06-30 | $10.9m | us-gaap:IncomeTaxExpenseBenefit |
| Net income | 3 months, 2026-04-01 to 2026-06-30 | $17.0m | us-gaap:NetIncomeLoss |
| Net income | 6 months, 2026-01-01 to 2026-06-30 | $33.3m | us-gaap:NetIncomeLoss |
| Diluted EPS | 3 months, 2026-04-01 to 2026-06-30 | $0.98 | us-gaap:EarningsPerShareDiluted |
| Diluted EPS | 6 months, 2026-01-01 to 2026-06-30 | $1.89 | us-gaap:EarningsPerShareDiluted |
| Basic EPS | 3 months, 2026-04-01 to 2026-06-30 | $0.98 | us-gaap:EarningsPerShareBasic |
| Basic EPS | 6 months, 2026-01-01 to 2026-06-30 | $1.89 | us-gaap:EarningsPerShareBasic |
| Diluted shares (weighted) | 3 months, 2026-04-01 to 2026-06-30 | 17,386,000 shares | us-gaap:WeightedAverageNumberOfDilutedSharesOutstanding |
| Diluted shares (weighted) | 6 months, 2026-01-01 to 2026-06-30 | 17,630,000 shares | us-gaap:WeightedAverageNumberOfDilutedSharesOutstanding |
| Operating cash flow | 6 months, 2026-01-01 to 2026-06-30 | $39.8m | us-gaap:NetCashProvidedByUsedInOperatingActivities |
| Capital expenditure | 6 months, 2026-01-01 to 2026-06-30 | $4.1m | us-gaap:PaymentsToAcquirePropertyPlantAndEquipment |
| Dividends paid | 6 months, 2026-01-01 to 2026-06-30 | $13.5m | us-gaap:PaymentsOfDividendsCommonStock |
| Share repurchases | 6 months, 2026-01-01 to 2026-06-30 | $48.5m | us-gaap:PaymentsForRepurchaseOfCommonStock |
| Cash and equivalents | at 2026-06-30 | $696.6m | us-gaap:CashAndCashEquivalentsAtCarryingValue |
| Total assets | at 2026-06-30 | $6.52bn | us-gaap:Assets |
| Total liabilities | at 2026-06-30 | $5.87bn | us-gaap:Liabilities |
| Short-term borrowings | at 2026-06-30 | $108.4m | us-gaap:ShortTermBorrowings |
| Shareholders' equity | at 2026-06-30 | $656.0m | us-gaap:StockholdersEquity |

## Management's discussion and analysis

As filed, 66,202 characters.

### Introduction

The review that follows focuses on the factors affecting the financial condition and results of operations of TrustCo during the three-month and six-month periods ended June 30, 2026, with comparisons to the corresponding period in 2025, as applicable. The consolidated interim financial statements and related notes, as well as the Annual Report on Form 10-K for the year ended December 31, 2025, which was filed with the SEC on March 16, 2026 (the “2025 Form 10-K”), should also be read in conjunction with this review. Amounts in the prior period consolidated interim financial statements are reclassified whenever necessary to conform to the current period's presentation. These reclassifications have no effect on prior period net income or shareholders’ equity. See “Cautionary Note Regarding Forward-Looking Statements” on page 5 of this report for a description of important factors that could cause actual results to differ from expected results.

Following this Management’s Discussion and Analysis is the table "Distribution of Assets, Liabilities and Shareholders' Equity: Interest Rates and Interest Differential" which gives a detailed breakdown of TrustCo's average interest earning assets and interest-bearing liabilities for the three and six month periods ended June 30, 2026 and 2025.

### Economic Overview

During the second quarter of 2026, financial markets enjoyed solid growth in all major financial market indexes. The S&P 500 Index was up 14.87%, Nasdaq was up 21.41%, and the Dow Jones Industrial Average was up 12.90% compared to the end of the first quarter of 2026. The 10‑year Treasury bond averaged 4.42% during Q2 2026 compared to 4.20% in Q1 2026, an increase of 22 basis points. The 2‑year Treasury bond average rate increased 39 basis points to 3.97% during Q2 2026, which flattened the yield curve as compared to the prior quarter. The spread between the 10‑year and the 2-year Treasury bonds decreased from 0.62% on average in Q1 2026 to 0.46% in Q2 2026. Generally, steeper yield curves are favorable for portfolio mortgage lenders like TrustCo, and the table below illustrates the range of rate movements for both short term and longer-term rates. During the first half of 2026, the Federal Funds rate remained flat at a range of 3.50% to 3.75%.

#### Index

|  |  |  | 3 Month Yield (%) | 2 Year Yield (%) | 5 Year Yield (%) | 10 Year Yield (%) | 10 - 2 Year Spread (%) |
| --- | --- | ---: | ---: | ---: | ---: | ---: | ---: |
| Q2/25 |  | Beg of Q2 | 4.32 | 3.89 | 3.96 | 4.23 | 0.34 |
|  | Peak | 4.46 | 4.05 | 4.17 | 4.58 | 0.67 |  |
|  | Trough | 4.28 | 3.60 | 3.72 | 4.01 | 0.29 |  |
|  | End of Q2 | 4.41 | 3.72 | 3.79 | 4.24 | 0.52 |  |
|  | Average in Q2 | 4.37 | 3.86 | 3.97 | 4.36 | 0.50 |  |
| Q3/25 |  | Beg of Q3 | 4.41 | 3.72 | 3.79 | 4.24 | 0.52 |
|  | Peak | 4.42 | 3.95 | 4.05 | 4.50 | 0.65 |  |
|  | Trough | 4.00 | 3.49 | 3.57 | 4.01 | 0.43 |  |
|  | End of Q3 | 4.02 | 3.60 | 3.74 | 4.16 | 0.56 |  |
|  | Average in Q3 | 4.26 | 3.72 | 3.80 | 4.26 | 0.54 |  |
| Q4/25 |  | Beg of Q4 | 4.02 | 3.60 | 3.74 | 4.16 | 0.56 |
|  | Peak | 4.03 | 3.63 | 3.78 | 4.19 | 0.73 |  |
|  | Trough | 3.62 | 3.41 | 3.55 | 3.97 | 0.49 |  |
|  | End of Q4 | 3.67 | 3.47 | 3.73 | 4.18 | 0.71 |  |
|  | Average in Q4 | 3.86 | 3.52 | 3.67 | 4.10 | 0.58 |  |
| Q1/26 |  | Beg of Q1 | 3.67 | 3.47 | 3.73 | 4.18 | 0.71 |
|  | Peak | 3.74 | 3.96 | 4.08 | 4.44 | 0.74 |  |
|  | Trough | 3.62 | 3.38 | 3.51 | 3.97 | 0.46 |  |
|  | End of Q1 | 3.70 | 3.79 | 3.92 | 4.30 | 0.51 |  |
|  | Average in Q1 | 3.69 | 3.58 | 3.77 | 4.20 | 0.62 |  |
| Q2/26 |  | Beg of Q2 | 3.70 | 3.79 | 3.92 | 4.30 | 0.51 |
|  | Peak | 3.87 | 4.24 | 4.32 | 4.67 | 0.57 |  |
|  | Trough | 3.65 | 3.71 | 3.84 | 4.26 | 0.27 |  |
|  | End of Q2 | 3.87 | 4.14 | 4.19 | 4.44 | 0.30 |  |
|  | Average in Q2 | 3.73 | 3.97 | 4.09 | 4.42 | 0.46 |  |

The country has been experiencing economic uncertainty as markets continue to adjust to changes in tariff policies, Middle East tensions, increased oil prices and a volatile labor market. The Federal Open Market Committee (“FOMC”) lowered the Federal Funds target rate range to 3.50-3.75% in December 2025 and there was no change in the first half of 2026. At its meeting in July 2026, the FOMC majority voted to leave rates unchanged although three members voted to increase the Federal Funds target rate.

The Company expects to see continued volatility in the economic markets resulting from governmental responses to inflation and recessionary signs in the economy, as well as uncertainty about the impacts of the conflict in Iran and tariffs. These changing conditions could have impacts on the balance sheet and income statement of the Company for the remainder of the year.

Management believes that TrustCo’s long-term focus on traditional banking services and practices historically has enabled the Company to avoid significant impact from asset quality problems, and that the Company’s strong liquidity and solid capital positions have allowed the Company to continue to conduct business in a manner consistent with its past practice. While we continue to adhere to prudent underwriting standards, should general housing prices and other economic measures, such as unemployment in the Company’s market areas, deteriorate as a result of changes in interest rates, general economic instability, a potential or actual default on the federal debt or other reasons, the Company may experience an increase in the level of credit risk and in the amount of its classified and nonperforming loans.

### Financial Overview

TrustCo recorded net income of $17.0 million, or $0.98 of diluted earnings per share, for the three-months ended June 30, 2026, compared to net income of $15.0 million, or $0.79 of diluted earnings per share, in the same period in 2025. Return on average assets was 1.04% and 0.96%, respectively, for the three months ended June 30, 2026 and 2025. Return on average equity was 10.22% and 8.73%, respectively, for the three-months ended June 30, 2026 and 2025.

The primary factors accounting for the change in net income for the three-months ended June 30, 2026 compared to the same period of the prior year were:

- An increase of $3.8 million, or 9.2%, in net interest income for the second quarter of 2026 compared to the second quarter of 2025, primarily as a result of an increase in interest and fee income on loans.
- An increase of $1.1 million in noninterest income for the second quarter of 2026 compared to the second quarter of 2025 primarily as a result of net gains on equity securities of $844 thousand.
- An increase of $2.1 million in noninterest expense for the second quarter of 2026 compared to the second quarter of 2025 primarily as a result of increases in salary and employee benefits and other expenses.

TrustCo recorded net income of $33.3 million, or $1.89 of diluted earnings per share, for the six-months ended June 30, 2026, compared to net income of $29.3 million, or $1.54 of diluted earnings per share, in the same period in 2025. Return on average assets was 1.03% and 0.94%, for the six-months ended June 30, 2026 and 2025, respectively. Return on average equity was 9.94% and 8.61% for the six-months ended June 30, 2026 and 2025, respectively.

The primary factors accounting for the change in net income for the six-months ended June 30, 2026 compared to the same period of the prior year were:

- An increase of $8.2 million, or 10.0%, in net interest income compared to the first six-months of 2025, primarily as a result of an increase in interest and fee income on loans and a decrease in interest expense on deposits.
- An increase of $927 thousand in noninterest income for the first six-months of 2026 compared to the first six-months of 2025 primarily as a result of net gains on equity securities of $844 thousand.
- An increase of $2.8 million in noninterest expense for the first six-months of 2026 compared to the first six-months of 2025 primarily as a result of increases in salary and employee benefits and other expenses.

### Visa Exchange Offer

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.

### Asset/Liability Management

The Company strives to generate its earnings capabilities through a mix of core deposits funding a prudent mix of earning assets. Additionally, TrustCo attempts to maintain adequate liquidity and reduce the sensitivity of net interest income to changes in interest rates to an acceptable level while enhancing profitability both on a short‑term and long‑term basis.

TrustCo’s results are affected by a variety of factors including competitive and economic conditions in the specific markets in which the Company operates and, more generally, in the national economy, financial market conditions and the regulatory environment. Each of these factors is dynamic, and changes in any area can have an impact on TrustCo’s results. Included in the 2025 Form 10-K is a description of the effect that changes in interest rates had on the results for the year 2025 compared to 2024. Many of the same market factors discussed in the 2025 Form 10-K continued to have an impact on results through the second quarter of 2026.

TrustCo competes with other financial service providers based upon many factors including quality of service, convenience of operations and rates paid on deposits and charged on loans. In the experience of management, the absolute level of interest rates, changes in interest rates and customers’ expectations with respect to the direction of interest rates have a significant impact on the volume of loan and deposit originations in any particular period.

Interest rates have a significant impact on the operations and financial results of all financial services companies. One of the most important interest rates used to control national economic policy is the “Federal Funds” rate. This is the interest rate utilized within the banking system for overnight borrowings for institutions with the highest credit rating. During the second quarter of 2026 Federal Funds target rate remained flat at a range of 3.50% to 3.75% through June 30, 2026.

The interest rate on the 10-year Treasury bond and other long-term interest rates have significant influence on the rates for new residential real estate loans and longer term investments. These changes in interest rates have an effect on the Company relative to the interest income on loans, securities, and Federal Funds Sold and other short-term instruments as well as the interest expense on deposits and borrowings. Residential real estate loans and longer‑term investments are most affected by the changes in longer term market interest rates such as the 10‑year Treasury. The Federal Funds Sold portfolio and other short‑term investments are affected primarily by changes in the Federal Funds target rate. Deposit interest rates are most affected by short-term market interest rates. Also, changes in interest rates have an effect on the recorded balance of the securities available for sale portfolio, which is recorded at fair value. Generally, as market interest rates increase, the fair value of the securities will decrease and the reverse is also generally applicable. Interest rates on new residential real estate loan originations are also influenced by the rates established by secondary market participants such as Freddie Mac and Fannie Mae. The Company establishes rates that management determines are appropriate in light of the long-term nature of residential real estate loans while remaining competitive. Higher market interest rates also generally increase the value of retail deposits.

TrustCo’s principal loan products are residential real estate loans. Most of TrustCo’s residential real estate loans carry a fixed rate of interest. As noted above, residential real estate loans and longer‑term investments are most affected by the changes in longer term market interest rates such as the 10-year Treasury. The 10‑year Treasury yield increased 22 basis points, on average, during the second quarter of 2026 compared to the first quarter of 2026 and also increased 6 basis points as compared to the second quarter of 2025.

While TrustCo has been affected by changes in financial markets over time, management believes that the impacts have been mitigated by the Company’s generally conservative approach to banking. The Company utilizes a traditional underwriting process in evaluating loan applications, and since originated loans are retained in the portfolio, there is a strong incentive to be conservative in making credit decisions. For additional information concerning TrustCo’s loan portfolio and nonperforming loans, please refer to the discussions under “Loans” and “Nonperforming Assets,” respectively. Further, the Company does not rely on borrowed funds to support its assets and maintains a significant level of liquidity on the asset side of the balance sheet. Management believes that these characteristics provide the Company with increased flexibility and stability during periods of market disruption and interest rate volatility.

A fundamental component of TrustCo’s strategy has been to grow customer relationships and the deposits and loans that are part of those relationships. Management believes that the Company has significant capacity to grow its balance sheet given its extensive branch network. The Company expects that growth to be profitable. While the Company has not changed its fundamental long-term strategy in regard to utilizing its excess capacity, management continually evaluates changing conditions and may seek to limit growth or reduce the size of the balance sheet if its analysis indicates that doing so would be beneficial.

For the second quarter of 2026, the net interest margin was 2.87%, up 16 basis points versus the prior year’s second quarter. The quarterly results reflect the following significant factors:

- The average balance of securities available for sale decreased by $39.4 million while the average yield increased 25 basis points to 3.06%. The increase in the average yield was a result of higher yields on investments purchased during 2025 and the first half 2026, as well as maturities of lower yielding securities over the same periods. The increase in the average yield was not enough to offset the decrease in average balance, resulting in less interest income.
- The average balance of Federal Funds sold and other short-term investments increased $38.8 million; however the average yield decreased 76 basis points to 3.70%. The increase in the average balance was not enough to offset the decrease in average yield, resulting in less interest income.
- The average loan portfolio grew by $197.5 million to $5.33 billion and the average yield increased 16 basis points to 4.41% in the second quarter of 2026 compared to the same period in 2025. This resulted in an increase in interest income.
- The average balance of interest-bearing liabilities increased $197.8 million and the average rate paid decreased 12 basis points to 1.79% in the second quarter of 2026 compared to the same period in 2025 resulting in less interest expense.

During the second quarter of 2026, the Company continued to focus on its strategy to expand its loan portfolio by offering competitive interest rates. Management believes the TrustCo residential real estate loan product is very competitive compared to local and national competitors. Competition remains strong in the Company’s market areas.

For the six-months ended June 30, 2026, the net interest margin was 2.86%, up 18 basis points versus the prior year. The six-month results reflect the following significant factors:

- The average balance of securities available for sale decreased by $42.7 million while the average yield increased 28 basis points to 3.00% for the first six-months of 2026 compared to the same period in 2025. The increase in the average yield was a result of higher yields on investments purchased during 2025 and the first half 2026 as well as maturities of lower yielding securities over the same periods. The increase in the average yield was not enough to offset the decrease in average balance, resulting in less interest income.
- The average balance of Federal Funds sold and other short-term investments increased $47.5 million; however the average yield decreased 76 basis points to 3.70%. The increase in the average balance was not enough to offset the decrease in average yield, resulting in less interest income.
- The average loan portfolio grew by $178.3 million to $5.30 billion and the average yield increased 18 basis points to 4.40% in the first six-months of 2026 compared to the same period in 2025. This resulted in an increase in interest income.
- The average balance of interest-bearing liabilities increased $174.8 million and the average rate paid decreased 13 basis points to 1.79% in the first six-months of 2026 compared to the same period in 2025 resulting in less interest expense.

The strategy on the funding side of the balance sheet was to offer competitive core deposit products coupled with short term time accounts. We believe that this strategy has sustained TrustCo’s strong liquidity position and continues to allow us to cross sell products to new and existing customer relationships and take advantage of opportunities as they arise.

### Earning Assets

Total average interest earning assets increased from $6.15 billion in the second quarter of 2025 to $6.35 billion in the same period of 2026 with an average yield of 4.27% in the second quarter of 2026 and 4.19% in the second quarter of 2025. The mix of assets invested in Federal Funds sold and other short-term investments and loans increased while securities available for sale and held to maturity securities decreased over the prior year period. Interest income on average earning assets increased from $64.5 million in the second quarter of 2025 to $67.7 million in the second quarter of 2026. This increase was primarily driven by the increase in interest income on loans due to higher interest rates on loan originations over the last year and variable rate loans repricing upwards.

### Loans

The average balance of loans was $5.33 billion in the second quarter of 2026 and $5.14 billion in the comparable period in 2025. The yield on loans was up 16 basis points to 4.41%. Interest income on loans was $58.8 million in the second quarter of 2026 up $4.2 million from the same period in 2025.

Compared to the second quarter of 2025, the average balance of residential mortgage loans, home equity credit lines, and commercial loans, all increased, while the average balance of installment loans decreased.

The average balance of residential mortgage loans was $4.53 billion in the second quarter of 2026 compared to $4.39 billion in 2025, an increase of 3.2%. The average yield on residential mortgage loans increased by 18 basis points to 4.12% in the second quarter of 2026 compared to 2025, primarily as a result of the higher interest rates on new originations compared to the existing portfolio yield.

TrustCo actively markets the residential loan products within its market territories. Mortgage loan rates are affected by a number of factors including rates on Treasury securities, the Federal Funds target rate, and rates set by competitors and secondary market participants. TrustCo aggressively markets the unique aspects of its loan products thereby attempting to create differentiation from other lenders. These unique aspects include low closing costs, fast turn-around time on loan approvals, and no escrow or mortgage insurance requirements for qualified borrowers. Assuming a change in long-term interest rates, the Company would anticipate that the unique features of its loan products will continue to attract customers in the residential mortgage loan area.

Commercial loans, which consist primarily of loans secured by commercial real estate, increased $13.4 million to an average balance of $319.7 million in the second quarter of 2026 compared to the same period in the prior year. The average yield on this portfolio was up 8 basis points to 5.64% compared to the prior year period, primarily as a result of higher interest rates on new originations compared to the existing portfolio yield and variable rate loans repricing upwards. The Company has remained selective in underwriting commercial loans in 2026 as the apparent risk/reward balance has been less favorable in some cases.

The average yield on home equity credit lines decreased 14 basis points to 6.25% during the second quarter of 2026 compared to the year earlier period. The average balances of home equity credit lines increased 10.4% to $473.7 million in the second quarter of 2026 as compared to the prior year.

### Securities Available for Sale

The average balance of the securities available for sale portfolio for the second quarter of 2026 was $319.2 million compared to $358.6 million for the comparable period in 2025. The decrease in the balance reflects routine paydowns, calls and maturities, partially offset by new investment purchases. The average yield was 3.06% for the second quarter of 2026 compared to 2.81% for the second quarter of 2025. The increase in average yield is a result of higher yields on bonds purchased as well as lower rate bonds maturing since the prior year quarter. This portfolio is primarily comprised of agency issued residential mortgage backed securities, bonds issued by government sponsored enterprises (such as Fannie Mae, the Federal Home Loan Bank, and Freddie Mac), Small Business Administration participation certificates, corporate bonds and municipal bonds. These securities are recorded at fair value with any adjustment in fair value included in other comprehensive income (loss), net of tax.

The net unrealized loss in the available for sale securities portfolio was $18.9 million as of June 30, 2026 compared to a net unrealized loss of $16.2 million as of December 31, 2025. The increase in net unrealized losses in the portfolio is the result of the current interest rate environment.

### Held to Maturity Securities

The average balance of held to maturity securities was $4.0 million for the second quarter of 2026 compared to $5.0 million in the second quarter of 2025. The decrease in balances reflects routine paydowns. No new securities were added to this portfolio during the period. The average yield was 4.47% for the second quarter of 2026 compared to 4.37% for the year earlier period. TrustCo expects to hold the securities in this portfolio until they mature or are called.

The net unrecognized gain in the held to maturity securities portfolio was $25 thousand as of June 30, 2026 compared to a net unrecognized gain of $50 thousand as of December 31, 2025. The decrease in the net unrecognized gains in the portfolio is the result of changes in market interest rate levels.

As of June 30, 2026, this portfolio consisted solely of residential mortgage-backed securities. The balances for these securities are recorded at amortized cost.

### Federal Funds Sold and Other Short-term Investments

The 2026 second quarter average balance of Federal Funds sold and other short-term investments was $687.2 million, a $38.8 million increase from the $648.5 million average for the same period in 2025, primarily due to an increase in deposits and funds from maturing and called securities which have not yet been deployed. The yield was 3.70% for the second quarter of 2026 and 4.46% for the comparable period in 2025. Interest income from this portfolio decreased $868 thousand from $7.2 million in 2025 to $6.3 million in 2026. The increase in the average balance was not enough to offset the decrease in yield over the same period.

The Federal Funds sold and other short-term investments portfolio is utilized to generate additional interest income and liquidity as funds are waiting to be deployed into the loan and securities portfolios.

### Funding Opportunities

TrustCo utilizes various funding sources to support its earning asset portfolio. The vast majority of the Company’s funding comes from traditional deposit vehicles such as savings, demand deposit, interest-bearing checking, money market and time deposit accounts.

Total average interest-bearing deposits (which includes interest bearing checking, money market accounts, savings and time deposits) increased $169.9 million to $4.85 billion for the second quarter of 2026 versus the second quarter in the prior year, and the average rate paid decreased from 1.93% for 2025 to 1.80% for 2026. Total interest expense on these deposits decreased $802 thousand to $21.7 million in the second quarter of 2026 compared to the year earlier period. From the second quarter of 2025 to the second quarter of 2026, interest-bearing checking account average balances were up 4.4%, certificates of deposit average balances were up 8.0%, non-interest demand average balances were up 5.0%, average savings balances decreased 1.3% and money market balances were down 6.1%. Overall, average balances are up from a year ago as we continue to encourage customers to retain their funds in the expanded product offerings of the Bank through aggressive marketing and product differentiation.

As of June 30, 2026, the maturity of total time deposits was as follows:

*(dollars in thousands)*

|  |  |
| --- | ---: |
| Under 1 year | **$2,057,537** |
| 1 to 2 years | **192,590** |
| 2 to 3 years | **862** |
| 3 to 4 years | **274** |
| 4 to 5 years | **87** |
| Over 5 years | **20** |
|  | **$2,251,370** |

As of June 30, 2026 and December 31, 2025, approximately $1.25 billion and $1.22 billion, respectively, of our deposit portfolio were uninsured. The uninsured amounts are estimates based on the methodologies and assumptions used for the Bank's regulatory reporting requirements.

Average short-term borrowings for the second quarter were $108.9 million in 2026 compared to $81.1 million in 2025. The increase in the average balance from the prior year period is primarily a result of increases in customer balances. The weighted average interest rate for short-term borrowings during the second quarter increased during this time period from 0.87% in 2025 to 1.36% in 2026. The short-term borrowings of the Company are cash management accounts, which represent retail accounts with customers for which the Bank has pledged certain assets as collateral. The customer account balances changed based on the needs of the underlying retail customers.

The Company has a number of contingent funding alternatives available in addition to the large cash and cash equivalents position and the investment securities positions it maintains on its balance sheet. The Bank is a member of the Federal Home Loan Bank of New York (“FHLBNY”) and is an eligible borrower at the Federal Reserve Bank of New York (“FRBNY”) and has the ability to borrow utilizing securities and/or loans as collateral at either institution. The Bank does not utilize brokered deposits as a part of its funding strategy, but does incorporate them as a potential contingent funding source within its Asset/Liability Management Policy. Like other contingent funding sources, brokered CDs may be tested from time to time to ensure operational and market readiness. As of June 30, 2026 the Company also has borrowing capacity of $1.02 billion available with the FHLBNY and $530 thousand available with the FRBNY. The borrowing capacity is secured by the loans pledged by the Company. As of June 30, 2026 and December 31, 2025, the Company had no outstanding borrowings with the FHLBNY or the FRBNY.

### Net Interest Income

Net interest income increased by $3.8 million to $45.6 million in the second quarter of 2026 compared to the same period in 2025 driven by loan growth at higher interest rates and lower interest expense, partially offset by lower investment interest income and a decrease in interest income on Federal Funds sold and other short-term investments. The net interest spread was up 20 basis points to 2.48% in the second quarter of 2026 compared to the same period in 2025. As previously noted, the net interest margin was up 16 basis points to 2.87% for the second quarter of 2026 compared to the same period in 2025. Yields on earning assets increased in the second quarter of 2026 compared to the second quarter of 2025, and rates on interest-bearing liabilities decreased causing margin expansion. The Federal Reserve’s decision regarding whether to cut, raise, or hold rates in upcoming meetings will have an effect on the Company’s ability to continue to decrease deposit costs which will impact margin in future quarters. During the second quarter of 2026, the Company was able to lower the rates offered on our time deposits while continuing to retain and grow that product.

Net interest income increased by $8.2 million to $90.3 million in the first six-months of 2026 compared to the same period in 2025. The net interest spread was up 23 basis points to 2.47% in the first six-months of 2026 compared to the same period in 2025. Net interest margin increased 18 basis points to 2.86% for the first six-months of 2026 compared to the same period in 2025. The increases in net interest income for the first six months of 2026 primarily resulted from the same factors discussed above for the second quarter of 2026.

### Nonperforming Assets

Nonperforming assets include nonperforming loans (“NPLs”), which are those loans in a non‑accrual status and loans past due three payments or more and still accruing interest. Also included in the total of nonperforming assets are foreclosed real estate properties, which are included in other assets and categorized as other real estate owned.

The following describes the nonperforming assets of TrustCo as of June 30, 2026:

**Nonperforming loans and foreclosed real estate**: Total NPLs were $21.8 million at June 30, 2026, compared to $20.7 million at December 31, 2025. There were no loans as of June 30, 2026 and December 31, 2025 that were past due 90 days or more and still accruing interest.

At June 30, 2026, nonperforming loans primarily include a mix of commercial and residential loans. Of total nonperforming loans of $21.8 million at June 30, 2026, $19.7 million were residential real estate loans, $2.0 million were commercial loans and mortgages and $53 thousand were installment loans, compared to $18.6 million, $2.0 million and $51 thousand, respectively, at December 31, 2025.

A significant percentage of nonperforming loans are residential real estate loans, which are historically lower-risk than most other types of loans. Net recoveries were $72 thousand on residential real estate loans (including home equity lines of credit) for the second quarter of 2026 compared to net recoveries of $121 thousand for the second quarter of 2025. Management believes that these loans have been appropriately written down where required.

Ongoing portfolio management is intended to result in early identification and disengagement from deteriorating credits. TrustCo has a diversified loan portfolio that includes a significant balance of residential mortgage loans to borrowers in the Capital Region of New York and Central Florida, and avoids concentrations to any one borrower or any single industry. TrustCo has no advances to borrowers or projects located outside the U.S. TrustCo continues to identify delinquent loans as quickly as possible and to move promptly to resolve problem loans. Efforts to resolve delinquencies begin immediately after the payment grace period expires, with repeated, automatically generated notices, as well as personalized phone calls and letters. Loans are placed in non-accrual status once they are 90 days past due, or earlier if management has determined that such classification is appropriate. Once in non-accrual status, loans are either brought current and maintained current, at which point they may be returned to accrual status, or they proceed through the foreclosure process. The collateral on non-accrual loans is evaluated periodically, and the loan value is written down if the collateral value is insufficient.

The Company originates loans throughout its branch franchise area. At June 30, 2026, 64.5% of its gross loan portfolio balances were in New York State and the immediately surrounding areas (including New Jersey, Vermont and Massachusetts), and 35.5% were in Florida. Those figures compare to 64.3% and 35.7%, respectively at December 31, 2025.

Economic conditions vary widely by geographic location. As a percentage of the total nonperforming loans as of June 30, 2026, 20.3% were to Florida borrowers, compared to 79.7% to borrowers in New York and surrounding areas. For the three-months ended June 30, 2026, New York and surrounding areas experienced net recoveries of approximately $93 thousand and there were net charge-offs of $5 thousand in Florida for the second quarter of 2026.

Other than loans currently identified as nonperforming, management is aware of no other loans in the Bank’s portfolio that pose material risk of the eventual non-collection of principal and interest. Also as of June 30, 2026, there were no other loans classified for regulatory purposes that management reasonably expects will materially impact future operating results, liquidity, or capital resources.

Loans individually evaluated for impairment are non-accrual residential loans delinquent greater than 180 days, non-accrual commercial loans, as well as loans classified as loan modifications to borrowers experiencing financial difficulty. There were $2.0 million and $2.1 million of commercial mortgages and commercial loans classified as individually evaluated as of June 30, 2026 and December 31, 2025, respectively. There were $24.9 million of individually evaluated residential loans at June 30, 2026 compared to $23.7 million classified as individually evaluated at December 31, 2025.

As of June 30, 2026 and December 31, 2025, the Company’s loan portfolio did not include any subprime mortgages or loans acquired with deteriorated credit quality.

As of June 30, 2026 there was $1.2 million of foreclosed real estate compared to $1.4 million at December 31, 2025.

### Allowance for credit losses on loans:

As of June 30, 2026, the Company utilized the Baseline scenario model of Moody’s economic scenarios and considered the uncertainty associated with the assumptions in the baseline scenario, including continued actions taken by the Federal Reserve with regard to monetary policy and interest rates and the potential impact of those actions and the potential impact of persistent high inflation on the economy. Outcomes in any or all of these factors could differ from the baseline scenario utilized, and the Company incorporated qualitative considerations reflecting the risk of uncertain economic conditions, and for additional dimensions of risk that may not be captured in the quantitative model.

During the quarter ended June 30, 2026, the Company enhanced its allowance for credit losses on loans calculation by updating its prepayment and curtailment assumptions. The Company continues to utilize internal data for estimating prepayments and curtailments. The Company is now using more recent data to better align the current interest rate environment, borrower behavior and the resulting impacts to paydowns, payoffs, etc. related to its loan portfolio.

The enhancement did not change the Company’s underlying methodology for estimating quantitative credit losses. The Company continues to use a discounted cash flow approach based on probability of default and loss given default assumptions, including the use of peer data.

The Company also continues to apply a reasonable and supportable forecast based on Moody’s Baseline Scenario for a four-quarter period. Following the forecast period, the model uses a four-quarter straight-line reversion to historical averages.

Qualitative adjustments continue to be evaluated using a weighted scorecard framework based on regulatory interagency guidance. The framework considers internal and external factors that may not be fully captured in the quantitative model, including changes in portfolio risk characteristics, economic conditions, lending practices, and other factors affecting the credit quality of each portfolio segment.

The aforementioned enhancement to prepayment and curtailment assumptions do not have a material impact on the Company’s financial statements.

In the second quarter of 2026, the Company recorded a provision for credit losses of $650 thousand, which is the result of a provision for credit losses on loans of $1.0 million, and benefit for credit losses on unfunded commitments of $350 thousand. The increase in the Allowance for Credit Losses on Loans (“ACLL”) during the second quarter of 2026 was primarily a result of loan growth. In the second quarter of 2025, the Company recorded a provision for credit losses of $650 thousand, which is all related to the provision for credit losses on loans, as there was no provision for credit losses on unfunded commitments. The Company recorded a provision for credit losses of $1.6 million for the six-months ended June 30, 2026 which is the result of a provision for credit losses on loans of $1.8 million and a benefit for credit losses on unfunded commitments of $150 thousand. For the six-months ended June 30, 2025 the Company recorded a provision for credit losses of $950 thousand which is the result of a provision for credit losses on loans of $750 thousand and a provision for unfunded commitments of $200 thousand.

See Note 5 of the consolidated financial statements for additional discussion related to the process for determining the provision for credit losses.

The allocation of the allowance for credit losses on loans as of June 30, 2026 and December 31, 2025 was as follows:

*(dollars in thousands)*

|  | As of June 30, 2026 Amount | Percent of Loans to Total Loans | As of December 31, 2025 Amount | Percent of Loans to Total Loans |
| --- | ---: | ---: | ---: | ---: |
| Commercial | **$3,059** | **5.42%** | $2,786 | 5.40% |
| Real estate - construction | **474** | **0.85%** | 411 | 0.80% |
| Real estate mortgage - 1 to 4 family | **46,931** | **84.55%** | 42,143 | 84.75% |
| Home equity lines of credit | **3,470** | **9.00%** | 6,636 | 8.84% |
| Installment Loans | **148** | **0.18%** | 229 | 0.21% |
|  | **54,082** | **100.00%** | $52,205 | 100.00% |

At June 30, 2026, the allowance for credit losses on loans was $54.1 million, compared to $52.2 million at December 31, 2025. The allowance represents 1.01% of the loan portfolio at June 30, 2026 and 0.99 % at December 31, 2025. The coverage ratio, or the allowance for credit losses on loans to NPLs, was 248.6% and 252.5% as of June 30, 2026 and December 31, 2025, respectively. The ratio of non-performing loans to total loans was 0.40% and 0.39% as of June 30, 2026 and December 31, 2025, respectively.

Net recoveries for the three-month period ended June 30, 2026 were $88 thousand and $9 thousand for the prior year period.

During the second quarter of 2026, there were no commercial loan charge-offs or residential loan charge-offs, and $13 thousand of installment loan charge-offs, compared with no commercial loan charge-offs, $17 thousand of gross residential mortgage charge-offs, and $116 thousand of installment loan charge-offs in the second quarter of 2025. During the second quarter of 2026 there were no commercial loan recoveries, $72 thousand of residential mortgage recoveries, and $29 thousand for installment loan recoveries, compared to no commercial loan recoveries, $138 thousand of residential mortgage recoveries, and $4 thousand of installment loan recoveries in the second quarter of 2025.

The following table presents the net charge-off (recovery) ratio for the three and six-months ended June 30, 2026 and 2025:

|  | For the three months ended June 30: 2026 | 2025 |
| --- | ---: | ---: |
| Commercial | **0.00%** | 0.00% |
| Real estate mortgage - 1 to 4 family | **0.00%** | 0.00% |
| Installment | **-0.16%** | 0.89% |
| Total | **0.00%** | 0.00% |

|  | For the six months ended June 30: 2026 | 2025 |
| --- | ---: | ---: |
| Commercial | **-0.01%** | -0.11% |
| Real estate mortgage - 1 to 4 family | **0.00%** | 0.00% |
| Installment | **0.09%** | 1.03% |
| Total | **0.00%** | -0.01% |

### Liquidity and Interest Rate Sensitivity

TrustCo seeks to obtain favorable sources of funding and to maintain prudent levels of liquid assets in order to satisfy varied liquidity demands. Management believes that TrustCo’s earnings performance and strong capital position enable the Company to easily secure new sources of liquidity. The Company actively manages its liquidity through target ratios established under its liquidity policies. Continual monitoring of both historical and prospective ratios allows TrustCo to employ strategies necessary to maintain adequate liquidity. Management has also defined various degrees of adverse liquidity situations which could potentially occur and has prepared appropriate contingency plans should such a situation arise. As noted, the Company has a number of contingent funding alternatives available in addition to the large cash and cash equivalents position and the investment securities positions it maintains on its balance sheet. As previously stated, the Bank is a member of the FHLBNY and is an eligible borrower at the FRBNY and has the ability to borrow utilizing securities and/or loans as collateral at either institution. As previously stated, the Bank does not utilize brokered deposits as a part of its funding strategy, but does incorporate them as a contingent funding source within its Asset/Liability Management Policy. Like other contingent funding sources, brokered deposits may be tested from time to time to ensure operational and market readiness. Management believes that the Company has adequate sources of liquidity to cover its contractual obligations and commitments over the next twelve months and beyond.

The Company uses an industry standard external model as the primary tool to identify, quantify and project changes in interest rates and their effect on loan prepayment speeds taken both from industry sources and internally generated data based upon historical trends in the Bank’s balance sheet. Assumptions based on the historical behavior of deposit rates and balances in relation to changes in market interest rates are also incorporated into the model. This model calculates an economic or fair value amount with respect to non-time deposit categories since these deposits are part of the core deposit products of the Company. The assumptions used are inherently uncertain and, as a result, the model cannot precisely measure the fair value of capital or precisely predict the impact of fluctuations in interest rates on the fair value of capital.

Using this model, the fair value of capital projections as of June 30, 2026 are referenced below. The base case (current rates) scenario shows the present estimate of the fair value of capital assuming no change in the operating environment or operating strategies and no change in interest rates from those existing in the marketplace as of June 30, 2026.

The following table indicates the impact on the fair value of capital assuming interest rates were to instantaneously increase by 100 bp, 200 bp, 300 bp and 400 bp or decrease by 100 bp, 200 bp, and 300 bp.

| As of June 30, 2026 | Estimated Percentage of Fair value of Capital to Fair value of Assets |
| --- | ---: |
| +400 BP | **21.50%** |
| +300 BP | **22.00** |
| +200 BP | **22.30** |
| +100 BP | **23.90** |
| Current rates | **24.40** |
| -100 BP | **24.00** |
| -200 BP | **22.80** |
| -300 BP | **20.80** |

### Noninterest Income

Total noninterest income for the second quarter of 2026 was $5.9 million compared to $4.9 million for the same period in the prior year. The increase is primarily the result of an unrealized gain of $844 thousand recorded on the Visa Class C Common stock exchange in the second quarter of 2026. Fees for services to customers was also up $221 thousand and financial services income was up $162 thousand in the second quarter of 2026 compared to the same period in the prior year. This was offset by other income decreasing $167 thousand for the second quarter of 2026 compared to the same period in the prior year. The fair value of assets under management was $1.4 billion at June 30, 2026, $1.3 billion at December 31, 2025, and $1.2 billion at June 30, 2025.

For the six-months ended June 30, 2026 total noninterest income was $10.8 million, up $927 thousand compared to the prior year period. The increase is also primarily the result the unrealized gain of $844 thousand recorded on the Visa Class C Common stock exchange during the six-months ended June 30, 2026. Financial services income was also up $177 thousand for the six months ended June 30, 2026 compared to the same period in the prior year. This was offset by fees for services to customers decreasing $84 thousand for the six-months ended June 30, 2026 compared to the same period in the prior year.

### Noninterest Expenses

Total noninterest expenses were $28.3 million for the three months ended June 30, 2026, compared to $26.2 million for the three months ended June 30, 2025. Significant changes included a $1.2 million increase in salaries and employee benefits primarily as a result of higher salaries and an increase in employees, as well as an increase in incentive compensation. Full time equivalent headcount was 733 as of June 30, 2025, 743 as of December 31, 2025, and 742 as of June 30, 2026. Changes in headcount represent normal fluctuations. Additionally, we had a $244 thousand increase in outsourced services, a $282 thousand increase in advertising expense, and a $749 thousand increase in other expenses primarily as a result of higher charitable contributions and various seasonal expenses, partially offset by a $410 thousand decrease in other real estate expense, net.

Total noninterest expenses were $55.3 million for the six-months ended June 30, 2026, compared to $52.6 million for the six-months ended June 30, 2025. Significant changes included a $1.5 million increase in salaries and employee benefits primarily as a result of higher salaries and an increase in employees, as well as an increase in incentive compensation, a $242 thousand increase in equipment expense, a $244 thousand increase in outsourced services, a $315 thousand increase in advertising expense, and a $1.2 million increase in other expenses primarily as a result of higher charitable contributions and various seasonal expenses, partially offset by a $388 thousand decrease in other real estate expense, net.

### Income Taxes

In the second quarter of 2026, TrustCo recognized income tax expense of $5.6 million compared to $4.7 million for the second quarter of 2025. The effective tax rates were 24.7 % and 23.8% for the second quarter of 2026 and 2025, respectively. For the first six-months, income taxes were $10.9 million and $9.1 million in 2026 and 2025, respectively. The effective tax rates were 24.7% and 23.7% for the six-months ended June 30, 2026 and 2025, respectively.

### Capital Resources

Consistent with its long-term goal of operating a sound and profitable financial organization, TrustCo strives to maintain strong capital ratios.

Banking regulators have moved towards higher required capital requirements due to the standards included in the “Basel III” banking capital reform measures and the Dodd-Frank Wall Street Reform and Consumer Protection Act, as well as a general trend towards reducing risk in the banking system by providing a greater capital margin.

Total shareholders’ equity at June 30, 2026 was $656.0 million compared to $692.8 million at June 30, 2025. TrustCo declared a dividend of $0.38 per share in the second quarter of 2026 and $0.36 per share in the second quarter of 2025. This results in a dividend payout ratio of 38.36% for the second quarter of 2026 based on earnings for the quarter of $17.0 million, compared to a dividend payout ratio of 45.27% for the second quarter of 2025 based on earnings for the quarter of $15.0 million.

The capital rules, which are generally applicable to both the Company and the Bank, include several measures; specifically, a Tier 1 leverage ratio, a common equity tier 1 (“CET1”) capital ratio, a tier 1 risk-based capital ratio and a total risk-based capital ratio. The rules also impose a capital conservation buffer that requires the Company and the Bank to maintain additional levels of Tier 1 common equity over the minimum risk-based capital levels before they may pay dividends, repurchase shares or pay discretionary bonuses.

The Bank and the Company reported the following capital ratios as of June 30, 2026 and December 31, 2025:

*(dollars in thousands)*

| (Bank Only) | As of June 30, 2026 Amount | Ratio | Well Capitalized(1) | Minimum for Capital Adequacy plus Capital Conservation Buffer (1)(2) |
| --- | ---: | ---: | ---: | ---: |
| **Tier 1 leverage ratio** | **$548,271** | **8.425%** | **5.000%** | **4.000%** |
| **Common equity tier 1 capital** | **548,271** | **14.477** | **6.500** | **7.000** |
| **Tier 1 risk-based capital** | **548,271** | **14.477** | **8.000** | **8.500** |
| **Total risk-based capital** | **595,718** | **15.729** | **10.000** | **10.500** |

*(dollars in thousands)*

|  | As of December 31, 2025 Amount | Ratio | Well Capitalized(1) | Minimum for Capital Adequacy plus Capital Conservation Buffer (1)(2) |
| --- | ---: | ---: | ---: | ---: |
| Tier 1 leverage ratio | $513,719 | 8.058% | 5.000% | 4.000% |
| Common equity tier 1 capital | 513,719 | 13.981 | 6.500 | 7.000 |
| Tier 1 risk-based capital | 513,719 | 13.981 | 8.000 | 8.500 |
| Total risk-based capital | 559,750 | 15.234 | 10.000 | 10.500 |

*(dollars in thousands)*

| (Consolidated) | As of June 30, 2026 Amount | Ratio | Minimum for Capital Adequacy plus Capital Conservation Buffer (1)(2) |
| --- | ---: | ---: | ---: |
| Tier 1 leverage ratio | **$648,489** | **9.963%** | **4.000%** |
| Common equity tier 1 capital | **648,489** | **17.118** | **7.000** |
| Tier 1 risk-based capital | **648,489** | **17.118** | **8.500** |
| Total risk-based capital | **695,948** | **18.371** | **10.500** |

*(dollars in thousands)*

|  | As of December 31, 2025 Amount | Ratio | Minimum for Capital Adequacy plus Capital Conservation Buffer (1)(2) |
| --- | ---: | ---: | ---: |
| Tier 1 leverage ratio | $676,012 | 10.601% | 4.000% |
| Common equity Tier 1 capital | 676,012 | 18.393 | 7.000 |
| Tier 1 risk-based capital | 676,012 | 18.393 | 8.500 |
| Total risk-based capital | 722,055 | 19.646 | 10.500 |

(1) Federal regulatory minimum requirements to be considered to be Well Capitalized and Adequately Capitalized

(2) The June 30, 2026 and December 31, 2025 common equity tier 1, tier 1 risk-based, and total risk-based capital ratios

include a capital conservation buffer of 2.50 percent

In addition, at June 30, 2026, the consolidated equity to total assets ratio was 10.05%, compared to 10.66% at December 31, 2025.

As of June 30, 2026, the capital levels of both TrustCo and the Bank exceeded the minimum standards, including with the current capital conservation buffer taken into account.

Under the Office of the Comptroller of the Currency’s (“OCC”) “prompt corrective action” regulations, a bank is deemed to be “well capitalized” when its CET1, Tier 1, total risk-based and leverage capital ratios are at least 6.5%, 8.0%, 10.0%, and 5.0%, respectively. A bank is deemed to be “adequately capitalized” or better if its capital ratios meet or exceed the minimum federal regulatory capital requirements, and “undercapitalized” if it fails to meet these minimal capital requirements. A bank is “significantly undercapitalized” if its CET1, Tier 1, total risk-based and leverage capital ratios fall below 3%, 4%, 6% and 3%, respectively and “critically undercapitalized” if the institution has a ratio of tangible equity to total assets that is equal to or less than 2%. As of June 30, 2026 and December 31, 2025, Trustco Bank met the definition of “well capitalized.”

As noted, the Company’s dividend payout ratio was 38.36% of net income for the second quarter of 2026 and 45.27% of net income for the second quarter of 2025. The per-share dividend paid in the second quarter of 2026 and 2025 was $0.38 and $0.36, respectively. The Company’s ability to pay dividends to its shareholders is dependent upon the ability of the Bank to pay dividends to the Company. The payment of dividends by the Bank to the Company is subject to continued compliance with minimum regulatory capital requirements. The OCC may disapprove a dividend if: the Bank would be undercapitalized following the distribution; the proposed capital distribution raises safety and soundness concerns; or the capital distribution would violate a prohibition contained in any statute, regulation or agreement.

TrustCo maintains a dividend reinvestment and stock purchase plan (DRSPP) with approximately 5,514 participants. The DRSPP allows participants to reinvest dividends in shares of the Company. The DRSPP also allows for additional purchases by participants and has a discount feature (up to a 5% for safe harbor provisions) that can be activated by management as a tool to raise capital. To date, the discount feature has not been utilized.

### Share Repurchase Program

On December 19, 2025, the Company’s Board authorized, and the Company announced, a share repurchase program of up to 2,000,000 shares, or approximately 11% of its then currently outstanding common stock. The program expires on December 31, 2026. During the three-months ended June 30, 2026, the Company repurchased a total of 479,141 shares at an average price per share of $50.76 for a total of $24.3 million under its Board authorized share repurchase program. As of June 30, 2026, the Company was authorized to repurchase up to an additional 998,633 shares of common stock under the share repurchase program.

### Critical Accounting Policies and Estimates

Our consolidated financial statements are prepared in accordance with accounting principles generally accepted in the U.S. The preparation of these consolidated financial statements requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, costs and expenses, income taxes and related disclosures. On an ongoing basis, we evaluate our estimates and assumptions. Our actual results may differ from these estimates under different assumptions or conditions.

During the six-months ended June 30, 2026, there were no significant changes to our critical accounting policies and estimates as described in the financial statements contained in the 2025 Form 10-K other than what is set forth immediately below.

Management considers the accounting policy relating to the allowance for credit losses to be a critical accounting policy given the measurement uncertainty and subjective judgement necessary in evaluating the levels of the allowance required to cover the life-time losses in the loan portfolio and the material effect that such judgments can have on the results of operations.

### Management's Discussion and Analysis

### STATISTICAL DISCLOSURE

### I. DISTRIBUTION OF ASSETS, LIABILITIES AND SHAREHOLDERS' EQUITY:

### INTEREST RATES AND INTEREST DIFFERENTIAL

**The following table summarizes the component distribution of the average balance sheet, related interest income and expense and the average annualized yields on interest earning assets and annualized rates on interest bearing liabilities of TrustCo for each of the reported periods.**

**Nonaccrual loans are included in loans for this analysis. The average balances of securities available for sale and held to maturity are calculated using amortized costs for these securities. Included in the average balance of shareholders' equity is the unrealized loss, net of tax, in the available for sale portfolio of $13.9 million in 2026 and $16.4 million in 2025. The subtotals contained in the following table are the arithmetic totals of the items contained in that category. Increases and decreases in interest income and expense due to both rate and volume have been allocated to the categories of variances (volume and rate) based on the percentage relationship of such variances to each other.**

*(dollars in thousands)*

| Assets Securities available for sale: | Three months ended June 30, 2026 Average Balance | Interest | Average Rate | Three months ended June 30, 2025 Average Balance | Interest | Average Rate | Change in Interest Income/ Expense | Variance Balance Change | Variance Rate Change |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| U. S. government sponsored enterprises | $14,980 | $111 | 2.97% | $73,468 | $614 | 3.34% | $(503) | $(441) | $(62) |
| Mortgage backed securities and collateralized mortgage obligations-residential | 220,507 | 1,486 | 2.68 | 244,628 | 1,613 | 2.62 | (127) | (322) | 195 |
| State and political subdivisions | 9 | - | 6.77 | 18 | - | 6.77 | - | - | - |
| Corporate bonds | 71,842 | 776 | 4.32 | 25,707 | 210 | 3.26 | 566 | 479 | 87 |
| Small Business Administration-guaranteed participation securities | 11,130 | 59 | 2.13 | 14,083 | 75 | 2.14 | (16) | (16) | - |
| Other | 711 | 7 | 3.94 | 697 | 8 | 4.59 | (1) | 1 | (2) |
| Total securities available for sale | 319,179 | 2,439 | 3.06 | 358,601 | 2,520 | 2.81 | (81) | (299) | 218 |
| Federal funds sold and other short-term Investments | 687,216 | 6,344 | 3.70 | 648,457 | 7,212 | 4.46 | (868) | 2,335 | (3,203) |
| Held to maturity securities: |  |  |  |  |  |  |  |  |  |
| Mortgage backed securities and collateralized mortgage obligations-residential | 3,964 | 44 | 4.47 | 4,970 | 54 | 4.37 | (10) | (18) | 8 |
| Total held to maturity securities | 3,964 | 44 | 4.47 | 4,970 | 54 | 4.37 | (10) | (18) | 8 |
| Federal Reserve Bank and Federal Home Loan Bank stock | 6,753 | 123 | 7.29 | 6,591 | 129 | 7.83 | (6) | 18 | (24) |
| Commercial loans | 319,748 | 4,505 | 5.64 | 306,373 | 4,261 | 5.56 | 244 | 187 | 57 |
| Residential mortgage loans | 4,529,147 | 46,665 | 4.12 | 4,387,181 | 43,236 | 3.94 | 3,429 | 1,425 | 2,004 |
| Home equity lines of credit | 473,705 | 7,385 | 6.25 | 428,933 | 6,830 | 6.39 | 555 | 1,420 | (865) |
| Installment loans | 9,864 | 202 | 8.19 | 12,523 | 230 | 7.35 | (28) | (155) | 127 |
| Loans, net of unearned income | 5,332,464 | 58,757 | 4.41 | 5,135,010 | 54,557 | 4.25 | 4,200 | 2,877 | 1,323 |
| Total interest earning assets | 6,349,576 | 67,707 | 4.27 | 6,153,629 | 64,472 | 4.19 | 3,235 | 4,913 | (1,678) |
| 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% | 15 | 62 | (47) |
| Money market accounts | 442,104 | 1,631 | 1.48 | 470,824 | 2,086 | 1.78 | (455) | (121) | (334) |
| Savings | 1,073,370 | 703 | 0.26 | 1,087,467 | 733 | 0.27 | (30) | (9) | (21) |
| Time deposits | 2,252,095 | 18,863 | 3.36 | 2,085,329 | 19,195 | 3.69 | (332) | 6,364 | (6,696) |
| Total interest bearing deposits | 4,852,773 | 21,748 | 1.80 | 4,682,862 | 22,550 | 1.93 | (802) | 6,296 | (7,098) |
| Short-term borrowings | 108,910 | 369 | 1.36 | 81,055 | 176 | 0.87 | 193 | 73 | 120 |
| Total interest bearing liabilities | 4,961,683 | $22,117 | 1.79 | 4,763,917 | $22,726 | 1.91 | (609) | 6,369 | (6,978) |
| 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 |  | $3,844 | $(1,456) | $5,300 |
| Net interest spread |  |  | 2.48% |  |  | 2.28% |  |  |  |
| Net interest margin (net interest income to total interest earning assets) |  |  | 2.87% |  |  | 2.71% |  |  |  |

74

### Management's Discussion and Analysis

### STATISTICAL DISCLOSURE

### I. DISTRIBUTION OF ASSETS, LIABILITIES AND SHAREHOLDERS' EQUITY:

### INTEREST RATES AND INTEREST DIFFERENTIAL

**The following table summarizes the component distribution of the average balance sheet, related interest income and expense and the average annualized yields on interest earning assets and annualized rates on interest bearing liabilities of TrustCo (adjusted for tax equivalency) for each of the reported periods.**

**Nonaccrual loans are included in loans for this analysis. The average balances of securities available for sale and held to maturity are calculated using amortized costs for these securities. Included in the average balance of shareholders' equity is the unrealized loss, net of tax, in the available for sale portfolio of $12.9 million in 2026 and $17.6 million in 2025. The subtotals contained in the following table are the arithmetic totals of the items contained in that category. Increases and decreases in interest income and expense due to both rate and volume have been allocated to the categories of variances (volume and rate) based on the percentage relationship of such variances to each other.**

*(dollars in thousands)*

| Assets Securities available for sale: | Six months ended June 30, 2026 Average Balance | Interest | Average Rate | Six months ended June 30, 2025 Average Balance | Interest | Average Rate | Change in Interest Income/ Expense | Variance Balance Change | Variance Rate Change |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| U. S. government sponsored enterprises | $21,088 | $260 | 2.47% | $74,071 | $1,210 | 3.27% | $(950) | $(708) | $(242) |
| Mortgage backed securities and collateralized mortgage obligations-residential | 220,568 | 2,955 | 2.68 | 242,083 | 3,096 | 2.56 | (141) | (475) | 334 |
| State and political subdivisions | 9 | - | 6.77 | 18 | - | 6.77 | - | - | - |
| Corporate bonds | 67,708 | 1,470 | 4.34 | 32,823 | 470 | 2.86 | 1,000 | 672 | 328 |
| Small Business Administration-guaranteed participation securities | 11,433 | 122 | 2.14 | 14,540 | 156 | 2.15 | (34) | (33) | (1) |
| Other | 710 | 15 | 4.23 | 698 | 15 | 4.30 | - | 1 | (1) |
| Total securities available for sale | 321,516 | 4,822 | 3.00 | 364,233 | 4,947 | 2.72 | (125) | (543) | 418 |
| Federal funds sold and other short-term Investments | 678,636 | 12,449 | 3.70 | 631,148 | 13,944 | 4.46 | (1,495) | 2,473 | (3,968) |
| Mortgage backed securities and collateralized mortgage obligations-residential | 4,089 | 91 | 4.48 | 5,101 | 111 | 4.35 | (20) | (87) | 67 |
| Total held to maturity securities | 4,089 | 91 | 4.48 | 5,101 | 111 | 4.35 | (20) | (87) | 67 |
| Federal Reserve Bank and Federal Home Loan Bank stock | 6,677 | 249 | 7.46 | 6,549 | 280 | 8.55 | (31) | 15 | (46) |
| Commercial loans | 317,420 | 8,911 | 5.61 | 302,173 | 8,426 | 5.58 | 485 | 428 | 57 |
| Residential mortgage loans | 4,504,163 | 92,431 | 4.11 | 4,386,418 | 85,851 | 3.92 | 6,580 | 2,346 | 4,234 |
| Home equity lines of credit | 469,267 | 14,558 | 6.26 | 421,498 | 13,265 | 6.35 | 1,293 | 1,825 | (532) |
| Installment loans | 10,300 | 422 | 8.26 | 12,744 | 465 | 7.36 | (43) | (166) | 123 |
| Loans, net of unearned income | 5,301,150 | 116,322 | 4.40 | 5,122,833 | 108,007 | 4.22 | 8,315 | 4,433 | 3,882 |
| Total interest earning assets | 6,312,068 | 133,933 | 4.25 | 6,129,864 | 127,289 | 4.16 | 6,644 | 6,291 | 353 |
| Allowance for credit losses on loans | (52,983) |  |  | (50,627) |  |  |  |  |  |
| Cash & non-interest earning assets | 221,773 |  |  | 202,590 |  |  |  |  |  |
| Total assets | $6,480,858 |  |  | $$ 6,281,827 |  |  |  |  |  |
| Liabilities and shareholders' equity |  |  |  |  |  |  |  |  |  |
| Deposits: |  |  |  |  |  |  |  |  |  |
| Interest bearing checking accounts | $1,072,787 | $1,084 | 0.20% | $$ 1,038,733 | $1,094 | 0.21% | (10) | 76 | (86) |
| Money market accounts | 446,303 | 3,183 | 1.44 | 469,952 | 4,075 | 1.75 | (892) | (197) | (695) |
| Savings | 1,070,121 | 1,378 | 0.26 | 1,088,408 | 1,467 | 0.27 | (89) | (24) | (65) |
| Time deposits | 2,222,120 | 37,220 | 3.38 | 2,069,998 | 38,178 | 3.72 | (958) | 5,859 | (6,817) |
| Total interest bearing deposits | 4,811,331 | 42,865 | 1.80 | 4,667,091 | 44,814 | 1.94 | (1,949) | 5,714 | (7,663) |
| Short-term borrowings | 112,672 | 770 | 1.38 | 82,125 | 356 | 0.87 | 414 | 162 | 252 |
| Total interest bearing liabilities | 4,924,003 | 43,635 | 1.79 | 4,749,216 | $45,170 | 1.92 | (1,535) | 5,876 | (7,411) |
| Demand deposits | 809,007 |  |  | 769,923 |  |  |  |  |  |
| Other liabilities | 73,151 |  |  | 76,308 |  |  |  |  |  |
| Shareholders' equity | 674,697 |  |  | 686,380 |  |  |  |  |  |
| Total liabilities and shareholders' equity | $6,480,858 |  |  | $$ 6,281,827 |  |  |  |  |  |
| Net interest income , tax equivalent |  | 90,298 |  |  | $82,119 |  | $8,179 | $415 | $7,764 |
| Net interest spread |  |  | 2.47% |  |  | 2.24% |  |  |  |
| Net interest margin (net interest income to total interest earning assets) |  |  |  |  |  |  |  |  |  |
|  |  |  | 2.86% |  |  | 2.68% |  |  |  |

75

## Market risk

As filed, 1,604 characters.

The information presented in the “Liquidity and Interest Rate Sensitivity” section of Part I, Item 2 of this Quarterly Report on Form 10-Q is incorporated herein by reference.

As detailed in the 2025 Form 10-K, the Company is subject to interest rate risk as its principal market risk. As noted in the Management’s Discussion and Analysis for the three-month and six-month periods ended June 30, 2026 and 2025, the Company continues to respond to changes in interest rates in such a way that positions the Company to meet short term earning goals and also allows the Company to respond to changes in interest rates in the future. Consequently, for the second quarter of 2026 and 2025, the Company had an average balance of Federal Funds sold and other short-term investments of $687.2 million and $648.5 million, respectively. As investment opportunities present themselves, management plans to invest funds from the Federal Funds sold and other short-term investment portfolio into the securities available for sale, securities held to maturity and loan portfolios. TrustCo does not engage in activities involving interest rate swaps, forward placement contracts, or any other instruments commonly referred to as “derivatives.” Additional disclosure of interest rate risk can be found under “Liquidity and Interest Rate Sensitivity” and “Asset/Liability Management” in the Management’s Discussion and Analysis section of this document.

Management has determined that no additional disclosures are necessary to assess changes in information about market risk that have occurred since December 31, 2025.

## Controls and procedures

As filed, 2,134 characters.

### Disclosure Controls and Procedures

The Company maintains disclosure controls and procedures (as that term is defined in Rules 13a-15(e) and 15d-15(e) of the Exchange Act) designed to ensure that information required to be disclosed in the reports that the Company files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the SEC. An evaluation was carried out under the supervision and with the participation of the Company’s management, including the Chief Executive Officer and Chief Financial Officer, of the effectiveness of the Company’s disclosure controls and procedures as of the end of the period covered by this report. Based upon this evaluation of those disclosure controls and procedures, the Chief Executive Officer and Chief Financial Officer of the Company concluded, as of the end of the period covered by this report, that the Company’s disclosure controls and procedures were effective to ensure that information required to be disclosed in the reports the Company files and submits under the Exchange Act is recorded, processed, summarized and reported as and when required.

In designing and evaluating the Company’s disclosure controls and procedures, management recognized that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives, and management necessarily was required to apply its judgment in evaluating the cost-benefit relationship of possible controls and procedures. Further, no evaluation of a cost-effective system of controls can provide absolute assurance that all control issues and instances of fraud, if any, will be detected.

### Changes in Internal Control over Financial Reporting

There have been no changes in internal control over financial reporting (as defined in Rule 13a-15(f) and 15d-15(f) of the Exchange Act) during the quarter to which this report relates that have materially affected or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

## Risk factors

As filed, 182 characters.

An investment in the Company involves risks, including the risks discussed in Item 1A. “Risk Factors” of the Company’s 2025 Form 10-K, which risk factors have not materially changed.

Filed Aug 10, 2026.
Source: SEC EDGAR, the filing index for accession 0001140361-26-031982. Last ingested by Listed: Nov 6, 2026, 16:05 ET. No prices; not investment advice.