TrustCo Reports 2025 Net Income of $61.1 Million for the Year; Posts Total Shareholder Return Three Times That Of Peers
Executive Snapshot:
Financial results:
Key metrics for the fourth quarter 2025 compared to the fourth quarter of 2024:
Net income of $15.6 million increased 38.0% compared to $11.3 million
Diluted earnings per share of $0.85 increased 44.1% compared to $0.59
Net interest margin of 2.82%, up 22 basis points from 2.60%
Return on Average Assets of 0.97%, up 32.9% from 0.73%
Return on Average Equity of 8.99%, up 34.2% from 6.70%
Net interest income of $43.7 million, up 12.4% from $38.9 million
Capital position and Stock Repurchase Program:
Book value per share as of December 31, 2025 was $38.08, up from $35.56 as of December 31, 2024
One million shares, or 5.3%, of TrustCo common stock were purchased under the Stock Repurchase Program during 2025, of which 533 thousand shares or 2.9% were purchased in the fourth quarter
Two million shares, or 11.1%, of TrustCo common stock authorized for purchase under an additional Stock Repurchase Program announced for 2026
GLENVILLE, N.Y., Jan. 21, 2026 (GLOBE NEWSWIRE) -- TrustCo Bank Corp NY (TrustCo, (TrustCo, NASDAQ:TRST) today announced strong financial results for the fourth quarter of 2025 highlighted by a substantial increase in net interest income, continued margin expansion, and sustained loan and deposit growth across core lending and deposit categories. For the three months ended December 31, 2025, net interest income increased 12.4% year over year to $43.7 million, supported by the ongoing asset repricing across our loan portfolio at higher yields and effective management of interest expense, which together more than offset competitive pressures on deposit pricing. For the three months ended December 31, 2025, net interest margin expanded to 2.82% from 2.60% in the prior year period, driven by enhanced asset yields and disciplined deposit pricing strategies. This resulted in fourth quarter 2025 net income of $15.6 million, or $0.85 diluted earnings per share, compared to net income of $11.3 million or $0.59 diluted earnings per share for the fourth quarter 2024; and net income of $61.1 million or $3.25 diluted earnings per share for the year ended December 31, 2025, compared to net income of $48.8 million or $2.57 diluted earnings per share for the year ended December 31, 2024. Loan balances expanded throughout the quarter, with total average loans increasing $126.8 million for the fourth quarter 2025 over the same period in 2024. Following this period of sustained growth, TrustCo remains confident in the quality of its loan portfolio amid broader market concerns. Our continued focus on solid underwriting within our loan portfolio and conservative lending standards positions us to manage credit risk effectively in the current environment.
Overview
Chairman, President, and CEO, Robert J. McCormick said, "The results announced today are absolutely stellar. Our team performed extraordinarily well on all levels. We have long-served Trustco Bank customers in a manner that has generated trust and earned loyalty. With this foundation, our retail area has been able to control cost of funds, which, in turn, expanded margin. The lenders finished strong, with the best quarterly loan growth of the year. The management team successfully executed a million-share buyback and then immediately sought and received regulatory approval for a further two-million share buyback, which we then fully funded. Thus, between what we have done, and what we are likely to do, we will have re-purchased more than 16% of the outstanding shares of our stock over the two-year period, and may not be done. Perhaps even more significantly, we grew total shareholder return 29% over the year, outpacing a major regional bank index and our proxy peers by a factor of more than three times. With our capital position still strong, and our credit quality remaining exceptional, I look forward to seeing our team deliver even greater value to our shareholders in 2026 and beyond."
Details
As the year came to an end, we continued to see meaningful net interest income improvement, and management expects net interest income improvement to remain sustainable. The Bank's loan and investment portfolios continue to reprice upward as lower yielding assets mature and are replaced with higher rate loan originations and bond 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, providing flexibility to support future growth as funding conditions continue to evolve. We believe that, together, these factors position the Bank to continue net interest income growth in the coming quarters and deliver long-term value to shareholders. Net interest income was $43.7 million for the fourth quarter 2025, an increase of $4.8 million, or 12.4%, compared to the fourth quarter of 2024, driven by loan growth at higher interest rates, and an increase in interest income on federal funds sold and other short-term investments. The net interest margin for the fourth quarter of 2025 was 2.82%, up 22 basis points from 2.60% in the fourth quarter of 2024. The yield on interest earnings assets increased to 4.24% in the fourth quarter of 2025, up 12 basis points from 4.12% in the fourth quarter of 2024. The cost of interest bearing liabilities decreased to 1.84% in the fourth quarter 2025, down from 1.97% in the fourth quarter 2024.
Average loans were up $126.8 million, or 2.5%, in the fourth quarter of 2025 over the same period in 2024. Average residential loans and Home Equity Credit Lines (HECLs), our primary lending focus, were up $50.6 million, or 1.2%, and $54.1 million, or 13.5%, respectively, in the fourth quarter 2025 over the same period in 2024. Average commercial loans also increased $24.5 million, or 8.6%, in the fourth quarter 2025 over the same period in 2024. We believe that this upward trend reflects improving economic confidence among borrowers, strong credit quality, and the Bank's focus on relationship lending. The consistent growth in the loan portfolio will likely enhance net interest income in the quarters ahead. Average deposits were up $208.0 million, or 3.9%, for the fourth quarter of 2025 compared to the fourth quarter 2024, 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.
During the fourth quarter of 2025, the Bank has remained focused on capital deployment and allocation, guided by a disciplined framework, with share repurchases serving 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 three and twelve months ended December 31, 2025, TrustCo repurchased 533 thousand shares, or 2.9%, and one million shares, or 5.3%, respectively, of TrustCo's outstanding common stock under the previously announced stock repurchase program. As a result, we have completed the repurchase of the maximum number of shares authorized for repurchase under the program that was authorized in the first quarter of 2025. Consequently, during the fourth quarter, the Company announced another stock repurchase program which allows the Company to repurchase up to two million shares, or 11.1%, of TrustCo common stock over the next year. 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 December 31, 2025, our equity to asset ratio was 10.66%, compared to 10.84% as of December 31, 2024. Book value per share as of December 31, 2025 was $38.08, up 7.1% compared to $35.56 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 $400 thousand in the fourth quarter of 2025, flat compared to $400 thousand for the same period in 2024. For the three months ended December 31, 2025 the provision for credit losses was the result of a provision for credit losses on loans of $300 thousand and a provision for credit losses on unfunded commitments of $100 thousand. The ratio of allowance for credit losses on loans to total loans was 0.99% as of both December 31, 2025 and 2024. The allowance for credit losses on loans was $52.2 million as of December 31, 2025, compared to $50.2 million as of December 31, 2024. Nonperforming loans (NPLs) were $20.7 million as of December 31, 2025, compared to $18.8 million as of December 31, 2024. NPLs were 0.39% and 0.37% of total loans as of December 31, 2025 and 2024, respectively. The coverage ratio, or allowance for credit losses on loans to NPLs, was 252.5% as of December 31, 2025, compared to 267.3% as of December 31, 2024. Nonperforming assets (NPAs) were $22.1 million as of December 31, 2025, compared to $21.0 million as of December 31, 2024. While nonperforming loans increased modestly during the year, asset quality metrics remain stable and well covered by reserves, reflecting the Bank's conservative underwriting standards.
A conference call to discuss fourth quarter 2025 results will be held at 9:00 a.m. Eastern Time on January 22, 2026. Those wishing to participate in the call may dial toll-free for the United States at 1-833-470-1428, and for Canada at 1-833-950-0062, Access code 774913. A replay of the call will be available for thirty days by dialing toll-free for the United States at 1-866-813-9403, Access code 268454. The call will also be audio webcast at https://events.q4inc.com/attendee/175579250, and will be available for one year.
About TrustCo Bank Corp NY
TrustCo Bank Corp NY is a $6.4 billion savings and loan holding company and through its subsidiary, Trustco Bank, operated 134 offices in New York, New Jersey, Vermont, Massachusetts, and Florida as of December 31, 2025.
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.
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 interest income and shareholder value for future quarters; the impact of our loan portfolio's growth on net interest income; the impact of the continued repricing of our loan and investment portfolios on 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 actual results to differ materially for TrustCo 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 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; 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, as well as diversity, equity, and inclusion-related 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, as well as volatility in financial markets; the soundness of other financial institutions; U.S. government shutdowns, credit rating downgrades, or failure to increase the debt ceiling; 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; 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 fourth-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 fourth 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; 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, 2024, our Quarterly Reports on Form 10-Q for the quarters ended March 31, 2025, June 30, 2025, and September 30, 2025, 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.
FINANCIAL HIGHLIGHTS
(dollars in thousands, except per share data)
(Unaudited)
Three months ended
12/31/2025
9/30/2025
12/31/2024
Summary of operations
Net interest income
$ 43,735
$ 43,119
$ 38,902
Provision for credit losses
400
250
400
Noninterest income
4,430
4,689
4,409
Noninterest expense
26,710
26,242
28,165
Net income
15,565
16,258
11,281
Per share
Net income per share:
- Basic
$ 0.85
$ 0.87
$ 0.59
- Diluted
0.85
0.86
0.59
Cash dividends
0.38
0.38
0.36
Book value at period end
38.08
37.30
35.56
Market price at period end
41.33
36.30
33.31
At period end
Full time equivalent employees
743
738
737
Full service banking offices
134
136
136
Performance ratios
Return on average assets
0.97
%
1.02
%
0.73
Return on average equity
8.99
9.29
6.70
Efficiency ratio (GAAP)
55.46
54.89
65.03
Adjusted Efficiency ratio (1)
55.12
54.87
63.93
Net interest spread
2.40
2.40
2.15
Net interest margin
2.82
2.82
2.60
Dividend payout ratio
44.14
43.68
60.70
Capital ratios at period end
Consolidated equity to assets (GAAP)
10.66
%
10.90
%
10.84
Consolidated tangible equity to tangible assets (1)
10.65
%
10.89
%
10.83
Asset quality analysis at period end
Nonperforming loans to total loans
0.39
%
0.36
%
0.37
Nonperforming assets to total assets
0.34
0.31
0.34
Allowance for credit losses on loans to total loans
0.99
1.00
0.99
Coverage ratio (2)
2.5x
2.8x
2.7x
(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.
FINANCIAL HIGHLIGHTS, Continued
(dollars in thousands, except per share data)
(Unaudited)
Year Ended
12/31/25
12/31/24
Summary of operations
Net interest income
$ 168,973
$ 151,939
Provision for credit losses
1,600
2,000
Net gains on equity securities
-
1,383
Noninterest income, excluding net gains on equity securities
18,945
18,451
Noninterest expense
105,504
105,727
Net income
61,137
48,833
Per share
Net income per share:
- Basic
$ 3.26
$ 2.57
- Diluted
3.25
2.57
Cash dividends
1.48
1.44
Book value at period end
38.08
35.56
Market price at period end
41.33
33.31
Performance ratios
Return on average assets
0.97
%
0.80
%
Return on average equity
8.88
7.43
Efficiency ratio (GAAP)
56.14
61.55
Adjusted Efficiency ratio (1)
55.76
61.60
Net interest spread
2.31
2.10
Net interest margin
2.74
2.54
Dividend payout ratio
45.19
56.09
(1) Non-GAAP Financial Measure, see Non-GAAP Financial Measures Reconciliation.
CONSOLIDATED STATEMENTS OF INCOME
(dollars in thousands, except per share data)
(Unaudited)
Three months ended
12/31/2025
9/30/2025
6/30/2025
3/31/2025
12/31/2024
Interest and dividend income:
Interest and fees on loans
$
56,886
$
55,953
$
54,557
$
53,450
$
53,024
Interest and dividends on securities available for sale:
U. S. government sponsored enterprises
350
599
614
596
680
State and political subdivisions
-
1
-
-
-
Mortgage-backed securities and collateralized mortgage
obligations - residential
1,490
1,583
1,613
1,483
1,418
Corporate bonds
536
265
210
260
358
Small Business Administration - guaranteed
participation securities
68
72
75
81
84
Other securities
8
7
8
7
6
Total interest and dividends on securities available for sale
2,452
2,527
2,520
2,427
2,546
Interest on held to maturity securities:
Mortgage-backed securities and collateralized mortgage
obligations - residential
50
52
54
57
59
Total interest on held to maturity securities
50
52
54
57
59
Federal Home Loan Bank stock
126
125
129
151
152
Interest on federal funds sold and other short-term investments
6,580
7,376
7,212
6,732
6,128
Total interest income
66,094
66,033
64,472
62,817
61,909
Interest expense:
Interest on deposits:
Interest-bearing checking
501
483
536
558
397
Savings
715
741
733
734
719
Money market deposit accounts
1,810
2,065
2,086
1,989
2,024
Time deposits
18,993
19,427
19,195
18,983
19,680
Interest on short-term borrowings
340
198
176
180
187
Total interest expense
22,359
22,914
22,726
22,444
23,007
Net interest income
43,735
43,119
41,746
40,373
38,902
Less: Provision for credit losses
400
250
650
300
400
Net interest income after provision for credit losses
43,335
42,869
41,096
40,073
38,502
Noninterest income:
Trustco Financial Services income
1,950
1,967
1,818
2,120
1,778
Fees for services to customers
2,192
2,429
2,266
2,645
2,226
Other
288
293
768
209
405
Total noninterest income
4,430
4,689
4,852
4,974
4,409
Noninterest expenses:
Salaries and employee benefits
12,242
12,727
11,876
11,894
12,068
Net occupancy expense
4,592
4,470
4,518
4,554
4,563
Equipment expense
2,219
1,938
1,918
1,944
2,404
Professional services
1,083
1,571
1,886
1,726
1,782
Outsourced services
2,100
2,492
2,460
2,700
3,051
Advertising expense
629
290
304
361
590
FDIC and other insurance
1,135
1,052
1,136
1,188
1,113
Other real estate expense, net
161
8
522
28
476
Other
2,549
1,694
1,603
1,934
2,118
Total noninterest expenses
26,710
26,242
26,223
26,329
28,165
Income before taxes
21,055
21,316
19,725
18,718
14,746
Income taxes
5,490
5,058
4,686
4,443
3,465
Net income
$
15,565
$
16,258
$
15,039
$
14,275
$
11,281
Net income per common share:
- Basic
$
0.85
$
0.87
$
0.79
$
0.75
$
0.59
- Diluted
0.85
0.86
0.79
0.75
0.59
Weighted average basic shares (in thousands)
18,275
18,755
18,965
19,020
19,015
Weighted average diluted shares (in thousands)
18,327
18,805
18,994
19,044
19,045
CONSOLIDATED STATEMENTS OF INCOME, Continued
(dollars in thousands, except per share data)
(Unaudited)
Year Ended
12/31/25
12/31/24
Interest and dividend income:
Interest and fees on loans
$
220,846
$ 205,600
Interest and dividends on securities available for sale:
U. S. government sponsored enterprises
2,159
3,213
State and political subdivisions
1
1
Mortgage-backed securities and collateralized mortgage
obligations - residential
6,169
5,760
Corporate bonds
1,271
1,557
Small Business Administration - guaranteed
participation securities
296
368
Other securities
30
13
Total interest and dividends on securities available for sale
9,926
10,912
Interest on held to maturity securities:
Mortgage-backed securities-residential
213
254
Total interest on held to maturity securities
213
254
Federal Home Loan Bank stock
531
604
Interest on federal funds sold and other short-term investments
27,900
25,946
Total interest income
259,416
243,316
Interest expense:
Interest on deposits:
Interest-bearing checking
2,078
1,236
Savings
2,923
2,876
Money market deposit accounts
7,950
8,748
Time deposits
76,598
77,726
Interest on short-term borrowings
894
791
Total interest expense
90,443
91,377
Net interest income
168,973
151,939
Less: Provision for credit losses
1,600
2,000
Net interest income after provision for credit losses
167,373
149,939
Noninterest income:
Trustco Financial Services income
7,855
7,247
Fees for services to customers
9,532
9,852
Net gains on equity securities
-
1,383
Other
1,558
1,352
Total noninterest income
18,945
19,834
Noninterest expenses:
Salaries and employee benefits
48,739
48,149
Net occupancy expense
18,134
17,820
Equipment expense
8,019
7,889
Professional services
6,266
6,675
Outsourced services
9,752
10,858
Advertising expense
1,584
1,803
FDIC and other insurance
4,511
4,116
Other real estate expense, net
719
770
Other
7,780
7,647
Total noninterest expenses
105,504
105,727
Income before taxes
80,814
64,046
Income taxes
19,677
15,213
Net income
$
61,137
