TrustCo Bank Corp reported first‑quarter 2026 results that surpassed analyst expectations, delivering a net income of $16.3 million and earnings per share of $0.91. Total revenue reached $71.1 million, with $49.5 million net of interest expense, while the loan portfolio expanded by $158.9 million to $5.29 billion. Net interest income rose 10.7% year‑over‑year to $44.7 million, and the net interest margin increased to 2.84% from 2.64% in the prior year, reflecting higher asset yields and disciplined deposit pricing.
The growth in the loan book was driven primarily by residential mortgages and home‑equity lines, which together accounted for the bulk of the $158.9 million increase. Commercial lending grew 5.8% to $300 million, adding a steady source of interest income. Non‑performing loans remained low at 0.41% of total loans, underscoring the bank’s conservative underwriting and strong asset quality.
"Our shareholders can be proud of the net income of $16.3 million we posted for the quarter, a 14% increase year‑over‑year," said Chairman, President and CEO Robert J. McCormick. He added that "net interest income improvement will remain sustainable" and that the bank’s share‑repurchase program will continue to be the centerpiece of its capital deployment strategy. McCormick also emphasized the importance of maintaining competitive deposit offerings while ensuring financial stability and continued support for the community’s banking needs.
The earnings beat was driven by a $0.11 per‑share excess over the consensus estimate of $0.80, a 13.8% upside. Revenue net of interest expense also outperformed expectations, and the quarter’s EPS of $0.91 compared favorably to the $0.85 reported in Q4 2025, indicating accelerating profitability. The strong results were supported by disciplined cost management and a favorable mix of high‑margin mortgage and equity products.
TrustCo completed a share‑repurchase of 522,000 shares in the quarter, representing 2.9% of outstanding shares, and its book value per share rose to $38.32 from $36.16 a year earlier. These actions reinforce management’s confidence in the bank’s long‑term value creation and its ability to sustain margin expansion in a competitive environment.
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