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Get filing alertsTrustCo reports Q2 net income up 12.8% to $17.0M as margin expands and buybacks continue
Filed July 21, 2026 · Period ending July 21, 2026 · ~1 min read
Key Changes
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Q2 2026 net income rose 12.8% YoY to $17.0M ($0.98/share), driven by 9.2% growth in net interest income to $45.6M and 16 bp margin expansion to 2.87% from loan repricing and deposit strategies.
Exhibit 99.A view on EDGAR → -
high
Repurchased 1M shares (5.6% of outstanding) in H1 2026, on pace to buy back 3M shares (15.8%) by year-end under 2025-2026 programs; book value per share up 4.8% YoY to $38.53.
Exhibit 99.A view on EDGAR → -
high
Average loans and deposits each grew 3.8% YoY ($197.5M and $208.6M respectively), with residential loans up 3.2% and home equity lines up 10.4%, reflecting balanced community lending.
Exhibit 99.A view on EDGAR → -
medium
Nonperforming loans rose to 0.40% of total loans from 0.35% YoY; allowance coverage at 248.6% of NPLs (down from 286.2%) but reserves remain 1.01% of total loans, up from 0.99%.
Exhibit 99.A view on EDGAR → -
low
Recognized $844K unrealized gain from Visa Class B-2 share conversion to B-3 and C shares; Class C shares retained at quarter-end.
Exhibit 99.A view on EDGAR →
Summary
TrustCo delivered strong second-quarter results, with net income climbing 12.8% year-over-year to $17.0 million as the bank's loan portfolio repriced at higher yields and deposit strategies drove net interest margin expansion of 16 basis points to 2.87%. The company grew both loans and deposits at a symmetrical 3.8% pace, reflecting its community-focused lending model, while executing an aggressive capital return: one million shares repurchased in the first half puts TrustCo on track to buy back 15.8% of outstanding stock by year-end. Asset quality metrics showed a modest uptick in nonperforming loans to 0.40% of total loans from 0.35% a year earlier, but reserves remain robust at 1.01% of loans with 248.6% coverage of NPLs.
The combination of margin expansion, disciplined loan growth, and substantial buybacks at a rising book value ($38.53, up 4.8% YoY) underscores management's confidence in the franchise and commitment to shareholder returns. Retail holders should watch whether the margin can hold as the repricing tailwind matures and whether the buyback pace continues into 2027.
Section-by-Section Diff
Event · Exhibit 99.A
Added in current filing · view on EDGAR →
For the three months ended June 30, 2026, net interest income increased 9.2% year over year to $45.6 million. This was driven by the ongoing asset repricing across our loan portfolio at higher yields and effective execution of deposit growth and pricing strategies. For the three months ended June 30, 2026, net interest margin expanded to 2.87% from 2.71% in the prior year period. This resulted in second quarter 2026 net income of $17.0 million, or $0.98 diluted earnings per share, compared to net income of $15.0 million, or $0.79 diluted earnings per share, for the second quarter 2025
TrustCo reported second quarter 2026 net income of $17.0 million, or $0.98 per diluted share, up 12.8% from $15.0 million, or $0.79 per share, in Q2 2025. Net interest income rose 9.2% to $45.6 million, driven by loan portfolio repricing at higher yields and deposit growth. Net interest margin expanded 16 basis points to 2.87% from 2.71% in the prior year period.
Added in current filing · view on EDGAR →
Average loans were up $197.5 million, or 3.8%, in the second quarter of 2026 over the same period in 2025. Average residential loans and Home Equity Credit Lines (HECLs), our primary lending focus, were up $142.0 million, or 3.2%, and $44.8 million, or 10.4%, respectively, in the second quarter of 2026 over the same period in 2025. Average commercial loans also increased $13.4 million, or 4.4%, in the second quarter of 2026 over the same period in 2025. ... Average deposits were up $208.6 million, or 3.8%, for the second quarter of 2026 compared to the second quarter of 2025, primarily as a result of an increase in time deposits, interest bearing checking accounts, and demand deposits.
Average loans increased $197.5 million, or 3.8%, year-over-year in Q2 2026, with residential loans up $142.0 million (3.2%) and home equity lines up $44.8 million (10.4%). Average deposits also grew $208.6 million, or 3.8%, driven by increases in time deposits, interest-bearing checking, and demand deposits. This symmetrical growth reflects the company's strategy of lending deposits back into the communities it serves.
Added in current filing · view on EDGAR →
Purchased 10.5% of TrustCo outstanding common stock under the 2026 and 2025 Stock Repurchase Programs through the acquisition of over one million shares in the first half of 2026, following the purchase of one million shares in 2025, reinforcing a disciplined long-term capital allocation strategy ... On pace to complete the repurchase of a total of three million shares, or 15.8%, of TrustCo common stock by the end of 2026 ... For the six months ended June 30, 2026, TrustCo repurchased one million shares, or 5.6%, of TrustCo’s outstanding common stock under its previously announced stock repurchase program, which authorizes TrustCo to repurchase up to two million shares, or 11.1%, of TrustCo’s outstanding common stock in 2026.
TrustCo repurchased one million shares in the first half of 2026, representing 5.6% of outstanding common stock, following the purchase of one million shares in 2025. The company is on pace to repurchase a total of three million shares, or 15.8% of outstanding stock, by the end of 2026 under its current authorization for two million shares in 2026. Book value per share increased to $38.53 as of June 30, 2026, up 4.8% from $36.75 a year earlier.
Added in current filing · view on EDGAR → · paraphrased
Nonperforming loans (NPLs) were $21.8 million as of June 30, 2026, compared to $17.9 million as of June 30, 2025. NPLs were 0.40% and 0.35% of total loans as of June 30, 2026 and June 30, 2025, respectively. The coverage ratio, or allowance for credit losses on loans to NPLs, was 248.6% as of June 30, 2026, compared to 286.2% as of June 30, 2025. Nonperforming assets (NPAs) were $23.0 million as of June 30, 2026, compared to $19.0 million as of June 30, 2025. ... The ratio of allowance for credit losses on loans to total loans was 1.01% and 0.99% as of June 30, 2026 and June 30, 2025, respectively.
Nonperforming loans increased to $21.8 million, or 0.40% of total loans, as of June 30, 2026, from $17.9 million, or 0.35%, a year earlier. The allowance for credit losses on loans was 1.01% of total loans, up from 0.99% in the prior year. The coverage ratio (allowance to NPLs) was 248.6%, down from 286.2% a year earlier. Management noted that asset quality metrics remain stable and well covered by reserves, reflecting conservative underwriting standards.
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Figures/quotes linked to EDGAR · Narrative written by AI · Jul 22, 2026 · How we verify