TrustCo Net Interest Income Reaches $47.0 Million

The Tip Desk · November 8, 2026 · 3 min read

Net interest income rose 9.1% year over year to $47.0 million in the third quarter as the margin reached 2.95% and net income was $17.3 million.

TrustCo Bank Corp NY (TRST), a $6.5 billion savings and loan holding company, reported net interest income of $47.0 million for the three months ended September 30, 2026, up 9.1% from a year earlier.

The company said the increase reflected ongoing asset repricing across the loan portfolio at higher yields and execution of deposit growth and pricing strategies. Net interest margin expanded 16 basis points year over year to 2.95%, after a 16-basis-point year-over-year expansion to 2.87% in the second quarter. The yield on interest-earning assets was 4.35%, and the cost of interest-bearing liabilities was 1.79%.

Net income was $17.3 million, or $1.02 a share diluted, compared with $16.3 million, or $0.86 a share, a year earlier. Return on average equity was 10.57%. The GAAP efficiency ratio was 54.03%.

Average loans increased $238.1 million, or 4.6%, year over year, after a 3.8% year-over-year increase in the second quarter. Average residential loans and home equity credit lines, the company’s primary lending focus, were up $177.3 million, or 4.0%, and $50.0 million, or 11.4%, respectively. Average commercial loans increased $13.5 million, or 4.3%. Average deposits increased $229.6 million, or 4.2%, after a 3.8% year-over-year increase in the second quarter, led by time deposits, interest-bearing checking, and demand deposits.

Chairman, President, and CEO Robert J. McCormick said steady growth in loans and deposits, coupled with favorable repricing of the nearly $5.5 billion loan portfolio, had boosted net interest income, increased margin by 16 basis points, and driven return on average equity up 1.28% year over year. He said the company is optimistic about maintaining positive momentum into 2027.

The provision for credit losses was $850 thousand, up $600 thousand from a year earlier. The company said the increase was driven by loan growth and changes in forward-looking economic assumptions rather than deterioration in underlying credit performance. The allowance for credit losses on loans to total loans was 1.01%. Nonperforming loans were $21.1 million, or 0.39% of loans, compared with $18.5 million, or 0.36%, a year earlier. Coverage was 261.8%.

TrustCo declared a quarterly cash dividend of $0.40 a share, or $1.60 annualized, a 5.3% increase from $0.38. It repurchased 500 thousand shares, or 2.9% of outstanding common stock, in the quarter. Through the first nine months of 2026 it had purchased more than 1.5 million shares under the 2026 and 2025 programs and said it is on pace to complete the repurchase of three million shares, or 15.8% of common stock, by the end of 2026.

Consolidated equity to assets was 9.72% as of September 30, 2026, down from 10.90% a year earlier. Book value per share was $38.20.

The company said it remains focused on capital deployment and allocation, with the dividend increase and share repurchases as tools to enhance shareholder value.