TrustCo Announces Net Income Up 26.3%; Net Interest Income up 11.5%; The Product of Strategic Vision and Effective Tactics

Executive Snapshot:

• Financial results:
  • Key metrics for the third quarter 2025 compared to the third quarter of 2024:
    • Net income of $16.3 million, or $0.86 diluted earnings per share, increased 26.3% compared to $12.9 million, or $0.68 diluted earnings per share
    • Net interest margin of 2.79%, up 18 basis points from 2.61%
    • Return on Average Assets of 1.02%, up 21.4%
    • Return on Average Equity of 9.29%, up 20.0%
    • Net interest income of $43.1 million, up 11.5% from $38.7 million
    • Average loans were up $125.9 million
    • Average deposits were up $251.1 million
      
      
• Capital position and Stock Repurchase Program:
  
  • Book value per share as of September 30, 2025 was $37.30, up from $35.19 as of September 30, 2024
  • 467 thousand shares, or 2.5%, of TrustCo common stock were purchased under the stock repurchase program during 2025. We have an additional 533 thousand, or 2.8% of our outstanding shares, available for future repurchases under the stock repurchase program.
    
    
• Continued Improvement in Credit Quality:
  
  • Nonperforming loans (NPLs) declined to $18.5 million as of September 30, 2025, from $19.4 million as of September 30, 2024, and continue to remain at low levels
  • NPLs to total loans decreased to 0.36% as of September 30, 2025 compared to 0.38% as of September 30, 2024
  • Nonperforming assets (NPAs) to total assets was reduced to 0.31% as of September 30, 2025 compared to 0.36% as of September 30, 2024
    
    

GLENVILLE, N.Y., Oct. 21, 2025 (GLOBE NEWSWIRE) --

TrustCo Bank Corp NY (TrustCo, NASDAQ: TRST) today announced strong financial results for the third quarter of 2025 highlighted by a substantial increase in net interest income, continued margin expansion, and sustained loan and deposit growth across key portfolios. For the three months ended September 30, 2025, net interest income increased 11.5% year over year to $43.1 million, fueled by the continued repricing of the loan portfolio to higher yields and careful control of deposit costs, despite persistent competitive challenges. For the three months ended September 30, 2025, net interest margin expanded to 2.79% from 2.61% in the prior year period, driven by enhanced asset yields and disciplined deposit pricing strategies. This resulted in third quarter 2025 net income of $16.3 million or $0.86 diluted earnings per share, compared to net income of $12.9 million or $0.68 diluted earnings per share for the third quarter 2024; and net income of $45.6 million or $2.41 diluted earnings per share for the nine months ended September 30, 2025, compared to net income of $37.6 million or $1.97 diluted earnings per share for the nine months ended September 30, 2024. Loan balances expanded throughout the quarter, with total average loans increasing $125.9 million or 2.5% for the third quarter 2025 over the same period in 2024. Following a 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, “Solid strategic vision accompanied by effective tactical decisions throughout the year are combining to create exceptional results and build momentum that we expect will continue to yield favorable returns to our shareholders. Our strategy is to deliver market-leading loan and deposit products, treat people fairly, and build lasting customer relationships. Tactically, we have held the line on cost of funds, grown loans and deposits, and meaningfully impacted our customers and communities through our service to food banks, the Ronald McDonald House Charities, various Veteran groups, and hospitals. The impact is dramatic. Return metrics are up significantly year to date, with ROAA, and ROAE up 18%, and 15%, respectively. Perhaps most dramatically, we impacted shareholder value by executing our share repurchase program, acquiring 467 thousand shares, with authorization remaining. This contributed to earnings per share growth of 22% year to date. A lesser company would be proud to have results like these for the entire year. Staying true to strategic vision consistently yields dividends, literally.”

Details

As the year progresses we expect to continue to see meaningful net interest income upside for quarters to come. 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 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 while navigating evolving funding dynamics. Together, these factors position the Bank to sustain healthy net interest income growth in the coming quarters and deliver long-term value to shareholders. Net interest income was $43.1 million for the third quarter 2025, an increase of $4.4 million, or 11.5%, compared to the third 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 third quarter 2025 was 2.79%, up 18 basis points from 2.61% in the third quarter of 2024. The yield on interest earnings assets increased to 4.25% in the third quarter of 2025, up 14 basis points from 4.11% in the third quarter of 2024. The cost of interest bearing liabilities decreased to 1.90% in the third quarter 2025, down from 1.94% in the third quarter 2024.

Average loans were up $125.9 million, or 2.5%, in the third quarter 2025 over the same period in 2024. Average residential loans and HECLs, our primary lending focus, were up $34.0 million, or 0.8%, and $59.9 million, or 15.7%, respectively, in the third quarter 2025 over the same period in 2024. Average commercial loans also increased $34.6 million, or 12.4%, in the third 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 sustained growth in the loan portfolio will likely enhance net interest income in the quarters ahead. Average deposits were up $251.1 million, or 4.8%, for the third quarter 2025 over the same period in 2024, primarily as a result of an increase in time deposits, interest bearing checking accounts, and demand deposits. The Bank’s continued emphasis on relationship banking, combined with competitive product offerings and digital capabilities, has contributed to a stable deposit base that supports ongoing loan growth and expansion.

During the third quarter of 2025, the Bank has remained a prudent steward of capital, steadfastly committed to enhancing shareholder value through a disciplined strategic share repurchase program. This reflects our confidence in the long-term strength of the franchise and our focus on capital optimization. For the three and nine months ended September 30, 2025, TrustCo purchased 298 thousand, or 1.6%, and 467 thousand, or 2.5%, respectively, of total shares outstanding of TrustCo common stock under the previously announced stock repurchase program. As a result, we have 533 thousand, or 2.8%, of outstanding shares available for repurchase remaining in this program, which if completed will represent a repurchase of one million shares, or 5.3%, of total outstanding shares. Our approach ensures every dollar of capital is working to generate solid returns, strengthen customer relationships, and enhance shareholder value. As of September 30, 2025, our equity to asset ratio was 10.90%, compared to 10.95% as of September 30, 2024. Book value per share as of September 30, 2025 was $37.30, up 6.0% compared to $35.19 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 on loans of $250 thousand in the third quarter of 2025, compared to $500 thousand for the same period in 2024. For the three months ended September 30, 2025 the provision for credit losses was the result of a provision for credit losses on loans of $450 thousand, and a benefit for credit losses on unfunded commitments of $200 thousand. The ratio of allowance for credit losses on loans to total loans was 1.00% and 0.99% as of September 30, 2025 and 2024, respectively. The allowance for credit losses on loans was $51.9 million as of September 30, 2025, compared to $50.0 million as of September 30, 2024. Nonperforming loans (NPLs) were $18.5 million as of September 30, 2025, compared to $19.4 million as of September 30, 2024. NPLs were 0.36% and 0.38% of total loans as of September 30, 2025 and 2024, respectively. The coverage ratio, or allowance for credit losses on loans to NPLs, was 280.8% as of September 30, 2025, compared to 256.9% as of September 30, 2024. Nonperforming assets (NPAs) were $19.7 million as of September 30, 2025, compared to $21.9 million as of September 30, 2024.

A conference call to discuss third quarter 2025 results will be held at 9:00 a.m. Eastern Time on October 22, 2025. 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 142665. 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 156241. The call will also be audio webcast at https://events.q4inc.com/attendee/516669384, and will be available for one year.

About TrustCo Bank Corp NY

TrustCo Bank Corp NY is a $6.3 billion savings and loan holding company and through its subsidiary, Trustco Bank, operated 136 offices in New York, New Jersey, Vermont, Massachusetts, and Florida as of September 30, 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 for future quarters; the impact of our loan portfolio’s growth, as well as the continued repricing of our loan and investment portfolios, on net interest income; 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 third-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 third 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 most recent 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 and June 30, 2025, and our Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2025 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.

Subsidiary: Trustco Bank

Contact:
Robert Leonard
Executive Vice President
(518) 381-3693

TRUSTCO BANK CORP NY
GLENVILLE, NY
FINANCIAL HIGHLIGHTS
(dollars in thousands, except per share data)
(Unaudited)
		Three months ended
		9/30/2025				6/30/2025				9/30/2024
Summary of operations
Net interest income		$	43,119			$	41,746			$	38,671
Provision for credit losses			250				650				500
Net gains on equity securities			-				-				23
Noninterest income, excluding net gains on equity securities			4,689				4,852				4,908
Noninterest expense			26,242				26,223				26,200
Net income			16,258				15,039				12,875
Per share
Net income per share:
- Basic		$	0.87			$	0.79			$	0.68
- Diluted			0.86				0.79				0.68
Cash dividends			0.38				0.36				0.36
Book value at period end			37.30				36.75				35.19
Market price at period end			36.30				33.42				33.07
At period end
Full time equivalent employees			738				733				735
Full service banking offices			136				136				138
Performance ratios
Return on average assets			1.02		%		0.96		%		0.84		%
Return on average equity			9.29				8.73				7.74
Efficiency ratio (GAAP)			54.89				56.27				60.09
Adjusted Efficiency ratio (1)			54.87				55.15				59.65
Net interest spread			2.35				2.28				2.17
Net interest margin			2.79				2.71				2.61
Dividend payout ratio			43.68				45.27				53.16
Capital ratios at period end
Consolidated equity to assets			10.90		%		10.91		%		10.95		%
Consolidated tangible equity to tangible assets (1)			10.89		%		10.91		%		10.94		%
Asset quality analysis at period end
Nonperforming loans to total loans			0.36		%		0.35		%		0.38		%
Nonperforming assets to total assets			0.31				0.30				0.36
Allowance for credit losses on loans to total loans			1.00				0.99				0.99
Coverage ratio (2)		2.8x				2.9x				2.6x
(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)
		Nine Months Ended
		09/30/25				09/30/24
Summary of operations
Net interest income		$	125,238			$	113,037
Provision for credit losses			1,200				1,600
Net gains on equity securities			-				1,383
Noninterest income, excluding net gains on equity securities			14,515				14,042
Noninterest expense			78,794				77,562
Net income			45,572				37,552
Per share
Net income per share:
- Basic		$	2.41			$	1.97
- Diluted			2.41				1.97
Cash dividends			1.10				1.08
Book value at period end			37.30				35.19
Market price at period end			36.30				33.07
Performance ratios
Return on average assets			0.97		%		0.82		%
Return on average equity			8.84				7.68
Efficiency ratio (GAAP)			56.38				60.80
Adjusted Efficiency ratio (1)			55.98				60.80
Net interest spread			2.28				2.08
Net interest margin			2.71				2.52
Dividend payout ratio			45.55				54.70
(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
		9/30/2025				6/30/2025				3/31/2025				12/31/2024				9/30/2024
Interest and dividend income:
Interest and fees on loans		$	55,953			$	54,557			$	53,450			$	53,024			$	52,112
Interest and dividends on securities available for sale:
U. S. government sponsored enterprises			599				614				596				680				718
State and political subdivisions			1				-				-				-				-
Mortgage-backed securities and collateralized mortgage
obligations - residential			1,583				1,613				1,483				1,418				1,397
Corporate bonds			265				210				260				358				361
Small Business Administration - guaranteed
participation securities			72				75				81				84				90
Other securities			7				8				7				6				2
Total interest and dividends on securities available for sale			2,527				2,520				2,427				2,546				2,568
Interest on held to maturity securities:
obligations - residential			52				54				57				59				62
Total interest on held to maturity securities			52				54				57				59				62
Federal Home Loan Bank stock			125				129				151				152				153
Interest on federal funds sold and other short-term investments			7,376				7,212				6,732				6,128				6,174
Total interest income			66,033				64,472				62,817				61,909				61,069
Interest expense:
Interest on deposits:
Interest-bearing checking			483				536				558				397				311
Savings			741				733				734				719				770
Money market deposit accounts			2,065				2,086				1,989				2,024				2,154
Time deposits			19,427				19,195				18,983				19,680				18,969
Interest on short-term borrowings			198				176				180				187				194
Total interest expense			22,914				22,726				22,444				23,007				22,398
Net interest income			43,119				41,746				40,373				38,902				38,671
Less: Provision for credit losses			250				650				300				400				500
Net interest income after provision for credit losses			42,869				41,096				40,073				38,502				38,171
Noninterest income:
Trustco Financial Services income			1,967				1,818				2,120				1,778				2,044
Fees for services to customers			2,429				2,266				2,645				2,226				2,482
Net gains on equity securities			-				-				-				-				23
Other			293				768				209				405				382
Total noninterest income			4,689				4,852				4,974				4,409				4,931
Noninterest expenses:
Salaries and employee benefits			12,727				11,876				11,894				12,068				12,134
Net occupancy expense			4,470				4,518				4,554				4,563				4,271
Equipment expense			1,938				1,918				1,944				2,404				1,757
Professional services			1,571				1,886				1,726				1,782				1,863
Outsourced services			2,492				2,460				2,700				3,051				2,551
Advertising expense			290				304				361				590				339
FDIC and other insurance			1,052				1,136				1,188				1,113				1,112
Other real estate expense, net			8				522				28				476				204
Other			1,694				1,603				1,934				2,118				1,969
Total noninterest expenses			26,242				26,223				26,329				28,165				26,200
Income before taxes			21,316				19,725				18,718				14,746				16,902
Income taxes			5,058				4,686				4,443				3,465				4,027
Net income		$	16,258			$	15,039			$	14,275			$	11,281			$	12,875
Net income per common share:
- Basic		$	0.87			$	0.79			$	0.75			$	0.59			$	0.68
- Diluted			0.86				0.79				0.75				0.59				0.68
Average basic shares (in thousands)			18,755				18,965				19,020				19,015				19,010
Average diluted shares (in thousands)			18,805				18,994				19,044				19,045				19,036
CONSOLIDATED STATEMENTS OF INCOME, Continued
(dollars in thousands, except per share data)
(Unaudited)
		Nine Months Ended
		09/30/25				09/30/24
Interest and dividend income:
Interest and fees on loans	$		163,960				152,576
Interest and dividends on securities available for sale:
U. S. government sponsored enterprises			1,809				2,533
State and political subdivisions			1				1
Mortgage-backed securities and collateralized mortgage
obligations - residential			4,679				4,342
Corporate bonds			735				1,199
Small Business Administration - guaranteed
participation securities			228				284
Other securities			22				7
Total interest and dividends on securities available for sale			7,474				8,366
Interest on held to maturity securities:
Mortgage-backed securities-residential			163				195
Total interest on held to maturity securities			163				195
Federal Home Loan Bank stock			405				452
Interest on federal funds sold and other short-term investments			21,320				19,818
Total interest income			193,322				181,407
Interest expense:
Interest on deposits:
Interest-bearing checking			1,577				839
Savings			2,208				2,157
Money market deposit accounts			6,140				6,724
Time deposits			57,605				58,046
Interest on short-term borrowings			554				604
Total interest expense			68,084				68,370
Net interest income			125,238				113,037
Less: Provision for credit losses			1,200				1,600
Net interest income after provision for credit losses			124,038				111,437
Noninterest income:
Trustco Financial Services income			5,905				5,469
Fees for services to customers			7,340				7,626
Net gains on equity securities			-				1,383
Other			1,270				947
Total noninterest income			14,515				15,425
Noninterest expenses:
Salaries and employee benefits			36,497				36,081
Net occupancy expense			13,542				13,257
Equipment expense			5,800				5,485
Professional services			5,183				4,893
Outsourced services			7,652				7,807
Advertising expense			955				1,213
FDIC and other insurance			3,376				3,003
Other real estate expense, net			558				294
Other			5,231				5,529
Total noninterest expenses			78,794				77,562
Income before taxes			59,759				49,300
Income taxes			14,187				11,748
Net income	$		45,572				37,552
Net income per common share:
- Basic	$		2.41				1.97
- Diluted			2.41				1.97
Average basic shares (in thousands)			18,912				19,019
Average diluted shares (in thousands)			18,947				19,034
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(dollars in thousands)
(Unaudited)
		9/30/2025				6/30/2025				3/31/2005				12/31/2024				9/30/2024
ASSETS:
Cash and due from banks		$	42,026			$	45,218			$	48,782			$	47,364			$	49,659
Federal funds sold and other short term investments			653,530				668,373				707,355				594,448				473,306
Total cash and cash equivalents			695,556				713,591				756,137				641,812				522,965
Securities available for sale:
U. S. government sponsored enterprises			51,557				71,241				65,942				85,617				90,588
States and political subdivisions			18				18				18				18				26
Mortgage-backed securities and collateralized mortgage
obligations - residential			215,466				221,721				219,333				213,128				222,841
Small Business Administration - guaranteed
participation securities			12,330				12,945				13,683				14,141				15,171
Corporate bonds			39,800				29,943				24,779				44,581				54,327
Other securities			701				698				698				700				701
Total securities available for sale			319,872				336,566				324,453				358,185				383,654
Held to maturity securities:
Mortgage-backed securities and collateralized mortgage
obligations-residential			4,593				4,836				5,090				5,365				5,636
Total held to maturity securities			4,593				4,836				5,090				5,365				5,636
Federal Reserve Bank and Federal Home Loan Bank stock			6,601				6,601				6,507				6,507				6,507
Loans:
Commercial			311,491				314,273				302,753				286,857				280,261
Residential mortgage loans			4,420,813				4,394,317				4,380,561				4,388,302				4,382,674
Home equity line of credit			447,235				435,433				419,806				409,261				393,418
Installment loans			12,231				12,678				13,017				13,638				14,503
Loans, net of deferred net costs			5,191,770				5,156,701				5,116,137				5,098,058				5,070,856
Less: Allowance for credit losses on loans			51,891				51,265				50,606				50,248				49,950
Net loans			5,139,879				5,105,436				5,065,531				5,047,810				5,020,906
Bank premises and equipment, net			39,718				38,129				37,178				33,782				33,324
Operating lease right-of-use assets			35,291				36,322				34,968				36,627				37,958
Other assets			107,514				106,894				108,681				108,656				98,730
Total assets		$	6,349,024			$	6,348,375			$	6,338,545			$	6,238,744			$	6,109,680
LIABILITIES:
Deposits:
Demand		$	795,508			$	784,351			$	793,306			$	762,101			$	753,878
Interest-bearing checking			1,025,582				1,045,043				1,067,948				1,027,540				988,527
Savings accounts			1,063,763				1,082,489				1,094,968				1,086,534				1,092,038
Money market deposit accounts			455,488				467,087				478,872				465,049				477,113
Time deposits			2,140,932				2,111,344				2,061,576				2,049,759				1,952,635
Total deposits			5,481,273				5,490,314				5,496,670				5,390,983				5,264,191
Short-term borrowings			97,749				82,370				82,275				84,781				91,450
Operating lease liabilities			38,180				39,350				38,324				40,159				41,469
Accrued expenses and other liabilities			39,809				43,536				33,468				46,478				43,549
Total liabilities			5,657,011				5,655,570				5,650,737				5,562,401				5,440,659
SHAREHOLDERS' EQUITY:
Capital stock			20,103				20,097				20,097				20,097				20,058
Surplus			259,980				259,490				259,182				258,874				257,644
Undivided profits			471,314				462,158				453,931				446,503				442,079
Accumulated other comprehensive income (loss), net of tax			2,955				1,663				(132	)			(3,861	)			(6,600	)
Treasury stock at cost			(62,339	)			(50,603	)			(45,270	)			(45,270	)			(44,160	)
Total shareholders' equity			692,013				692,805				687,808				676,343				669,021
Total liabilities and shareholders' equity		$	6,349,024			$	6,348,375			$	6,338,545			$	6,238,744			$	6,109,680
Outstanding shares (in thousands)			18,554				18,851				19,020				19,020				19,010

NONPERFORMING ASSETS
(dollars in thousands)
(Unaudited)
		9/30/2025			6/30/2025			3/31/2025			12/31/2024			9/30/2024
Nonperforming Assets
New York and other states*
Loans in nonaccrual status:
Commercial		$	292		$	684		$	688		$	343		$	466
Real estate mortgage - 1 to 4 family			14,568			14,048			14,795			14,671			15,320
Installment			30			34			139			108			163
Total nonperforming loans			14,890			14,766			15,622			15,122			15,949
Other real estate owned			1,234			1,136			2,107			2,175			2,503
Total nonperforming assets		$	16,124		$	15,902		$	17,729		$	17,297		$	18,452
Florida
Loans in nonaccrual status:
Commercial		$	-		$	-		$	-		$	-		$	314
Real estate mortgage - 1 to 4 family			3,574			3,132			3,135			3,656			3,176
Installment			13			12			3			22			5
Total nonperforming loans			3,587			3,144			3,138			3,678			3,495
Other real estate owned			-			-			-			-			-
Total nonperforming assets		$	3,587		$	3,144		$	3,138		$	3,678		$	3,495
Total
Loans in nonaccrual status:
Commercial		$	292		$	684		$	688		$	343		$	780
Real estate mortgage - 1 to 4 family			18,142			17,180			17,930			18,327			18,496
Installment			43			46			142			130			168
Total nonperforming loans			18,477			17,910			18,760			18,800			19,444
Other real estate owned			1,234			1,136			2,107			2,175			2,503
Total nonperforming assets		$	19,711		$	19,046		$	20,867		$	20,975		$	21,947
Quarterly Net (Recoveries) Chargeoffs
New York and other states*
Commercial		$	-		$	-		$	(3	)	$	62		$	65
Real estate mortgage - 1 to 4 family			(194	)		(121	)		41			(316	)		104
Installment			(2	)		18			4			41			11
Total net chargeoffs (recoveries)		$	(196	)	$	(103	)	$	42		$	(213	)	$	180
Florida
Commercial		$	-		$	-		$	(315	)	$	314		$	-
Real estate mortgage - 1 to 4 family			-			-			-			-			-
Installment			20			94			15			1			42
Total net (recoveries) chargeoffs		$	20		$	94		$	(300	)	$	315		$	42
Total
Commercial		$	-		$	-		$	(318	)	$	376		$	65
Real estate mortgage - 1 to 4 family			(194	)		(121	)		41			(316	)		104
Installment			18			112			19			42			53
Total net (recoveries) chargeoffs		$	(176	)	$	(9	)	$	(258	)	$	102		$	222
Asset Quality Ratios
Total nonperforming loans (1)		$	18,477		$	17,910		$	18,760		$	18,800		$	19,444
Total nonperforming assets (1)			19,711			19,046			20,867			20,975			21,947
Total net (recoveries) chargeoffs (2)			(176	)		(9	)		(258	)		102			222
Allowance for credit losses on loans (1)			51,891			51,265			50,606			50,248			49,950
Nonperforming loans to total loans			0.36	%		0.35	%		0.37	%		0.37	%		0.38	%
Nonperforming assets to total assets			0.31	%		0.30	%		0.33	%		0.34	%		0.36	%
Allowance for credit losses on loans to total loans			1.00	%		0.99	%		0.99	%		0.99	%		0.99	%
Coverage ratio (1)			280.8	%		286.2	%		269.8	%		267.3	%		256.9	%
Annualized net (recoveries) chargeoffs to average loans (2)			-0.01	%		0.00	%		-0.02	%		0.01	%		0.02	%
Allowance for credit losses on loans to annualized net chargeoffs (2)		N/A			N/A			N/A			123.2x			56.3x
* Includes New York, New Jersey, Vermont and Massachusetts.
(1) At period-end
(2) For the three-month period ended

DISTRIBUTION OF ASSETS, LIABILITIES AND SHAREHOLDERS' EQUITY -
INTEREST RATES AND INTEREST DIFFERENTIAL
(dollars in thousands)
(Unaudited)		Three months ended									Three months ended
		September 30, 2025									September 30, 2024
		Average				Interest		Average			Average				Interest		Average
		Balance						Rate			Balance						Rate
Assets
Securities available for sale:
U. S. government sponsored enterprises		$	69,294			$	599	3.46	%		$	95,073			$	718	3.02	%
Mortgage backed securities and collateralized mortgage
obligations - residential			237,092				1,583	2.65				241,792				1,397	2.29
State and political subdivisions			18				1	6.77				26				0	6.75
Corporate bonds			26,512				265	4.00				55,041				361	2.63
Small Business Administration - guaranteed
participation securities			13,385				72	2.15				16,663				90	2.15
Other			700				7	4.00				701				2	1.14
Total securities available for sale			347,001				2,527	2.91				409,296				2,568	2.51
Federal funds sold and other short-term Investments			662,737				7,376	4.42				465,922				6,174	5.27
Held to maturity securities:
Mortgage backed securities and collateralized mortgage
obligations - residential			4,709				52	4.40				5,779				62	4.29
Total held to maturity securities			4,709				52	4.40				5,779				62	4.29
Federal Home Loan Bank stock			6,601				125	7.57				6,507				153	9.41
Commercial loans			313,800				4,426	5.64				279,199				3,807	5.45
Residential mortgage loans			4,409,645				44,089	4.00				4,375,641				41,811	3.82
Home equity lines of credit			440,288				7,215	6.50				380,422				6,245	6.53
Installment loans			11,842				223	7.48				14,443				249	6.87
Loans, net of unearned income			5,175,575				55,953	4.32				5,049,705				52,112	4.12
Total interest earning assets			6,196,623			$	66,033	4.25				5,937,209			$	61,069	4.11
Allowance for credit losses on loans			(51,706	)								(49,973	)
Cash & non-interest earning assets			208,701									187,166
Total assets		$	6,353,618								$	6,074,402
Liabilities and shareholders' equity
Deposits:
Interest bearing checking accounts		$	1,035,366			$	483	0.18	%		$	1,000,333			$	311	0.12	%
Money market accounts			464,334				2,065	1.76				499,408				2,154	1.72
Savings			1,077,441				741	0.27				1,122,673				770	0.27
Time deposits			2,125,920				19,427	3.63				1,880,021				18,969	4.01
Total interest bearing deposits			4,703,061				22,716	1.92				4,502,435				22,204	1.96
Short-term borrowings			87,348				198	0.90				87,677				194	0.88
Total interest bearing liabilities			4,790,409			$	22,914	1.90				4,590,112			$	22,398	1.94
Demand deposits			792,621									742,164
Other liabilities			76,502									80,502
Shareholders' equity			694,086									661,624
Total liabilities and shareholders' equity		$	6,353,618								$	6,074,402
Net interest income						$	43,119								$	38,671
Net interest spread								2.35	%								2.17	%
Net interest margin (net interest income to
total interest earning assets)								2.79	%								2.61	%
DISTRIBUTION OF ASSETS, LIABILITIES AND SHAREHOLDERS' EQUITY -
INTEREST RATES AND INTEREST DIFFERENTIAL, Continued
(dollars in thousands)
(Unaudited)		Nine Months Ended									Nine Months Ended
		September 30, 2025									September 30, 2024
		Average				Interest		Average			Average				Interest		Average
		Balance						Rate			Balance						Rate
Assets
Securities available for sale:
U. S. government sponsored enterprises	$		72,461				1,809	3.33	%	$		111,570				2,533	3.03	%
Mortgage backed securities and collateralized mortgage
obligations - residential			240,401				4,679	2.59				250,343				4,342	2.31
State and political subdivisions			18				1	6.77				26				1	6.80
Corporate bonds			30,696				735	3.19				61,221				1,199	2.61
Small Business Administration - guaranteed
participation securities			14,151				228	2.15				17,438				284	2.17
Mortgage backed securities and collateralized mortgage
obligations - commercial			-									-
Other			698				22	4.20				697				7	1.34
Total securities available for sale			358,425				7,474	2.78				441,295				8,366	2.53
Federal funds sold and other short-term Investments			641,793				21,320	4.44				489,934				19,818	5.40
Held to maturity securities:
Mortgage backed securities and collateralized mortgage
obligations - residential			4,969				163	4.37				6,053				195	4.29
Total held to maturity securities			4,969				163	4.37				6,053				195	4.29
Federal Home Loan Bank stock			6,567				405	8.22				6,350				452	9.49
Commercial loans			306,091				12,851	5.60				278,981				11,232	5.37
Residential mortgage loans			4,394,245				129,940	3.94				4,364,821				123,046	3.76
Home equity lines of credit			427,830				20,480	6.40				365,932				17,522	6.40
Installment loans			12,440				689	7.40				15,319				776	6.76
Loans, net of unearned income			5,140,606				163,960	4.25				5,025,053				152,576	4.05
Total interest earning assets			6,152,360				193,322	4.19				5,968,685				181,407	4.05
Allowance for credit losses on loans			(50,991	)								(49,419	)
Cash & non-interest earning assets			204,651									187,963
Total assets	$		6,306,020							$		6,107,229
Liabilities and shareholders' equity
Deposits:
Interest bearing checking accounts	$		1,037,598				1,577	0.20	%	$		999,839				839	0.11	%
Money market accounts			468,059				6,140	1.75				522,636				6,724	1.72
Savings			1,084,712				2,208	0.27				1,142,313				2,157	0.25
Time deposits			2,088,844				57,605	3.69				1,881,027				58,046	4.12
Total interest bearing deposits			4,679,213				67,530	1.93				4,545,815				67,766	1.99
Short-term borrowings			83,885				554	0.88				91,551				604	0.88
Total interest bearing liabilities			4,763,098				68,084	1.91				4,637,366				68,370	1.97
Demand deposits			777,573									734,604
Other liabilities			76,372									82,233
Shareholders' equity			688,977									653,026
Total liabilities and shareholders' equity	$		6,306,020							$		6,107,229
Net interest income							125,238									113,037
Net interest spread								2.28	%								2.08	%
Net interest margin (net interest income to
total interest earning assets)								2.71	%								2.52	%

Non-GAAP Financial Measures Reconciliation

Tangible book value per share is a non-GAAP financial measure derived from GAAP-based amounts. We calculate tangible book value by excluding the balance of intangible assets from total shareholders’ equity divided by shares outstanding. We believe that this is consistent with the treatment by bank regulatory agencies, which exclude intangible assets from the calculation of risk-based capital ratios. Additionally, we believe that this measure is important to many investors in the marketplace who are interested in relative changes from period to period in equity exclusive of changes in intangible assets.

Tangible equity as a percentage of tangible assets at period end is a non-GAAP financial measure derived from GAAP-based amounts. We calculate tangible equity and tangible assets by excluding the balance of intangible assets from total shareholders’ equity and total assets, respectively. We calculate tangible equity as a percentage of tangible assets at period end by dividing tangible equity by tangible assets at period end. We believe that this is consistent with the treatment by bank regulatory agencies, which exclude intangible assets from the calculation of risk-based capital ratios. Additionally, we believe that this measure is important to many investors in the marketplace who are interested in relative changes from period to period in equity and total assets, each exclusive of changes in intangible assets.

Adjusted efficiency ratio is a non-GAAP measures of expense control relative to revenue from net interest income and non-interest fee income. We calculate the efficiency ratio by dividing total non-interest expense by the sum of net interest income and total non-interest income. We calculate the adjusted efficiency ratio by dividing total noninterest expenses as determined under GAAP, excluding other real estate expense, net, by net interest income and total noninterest income as determined under GAAP, excluding net gains on equity securities. We believe that this provides a reasonable measure of primary banking expenses relative to primary banking revenue. Additionally, we believe this measure is important to investors looking for a measure of efficiency in our productivity measured by the amount of revenue generated for each dollar spent.

We believe that these non-GAAP financial measures provide information that is important to investors and that is useful in understanding our financial results. Our management internally assesses our performance based, in part, on these measures. However, these non-GAAP financial measures are supplemental and not a substitute for an analysis based on GAAP measures. As other companies may use different calculations for these measures, this presentation may not be comparable to other similarly titled measures reported by other companies. A reconciliation of the non-GAAP measures of tangible book value to shares outstanding, tangible equity as a percentage of tangible assets, and efficiency ratio to the most directly comparable GAAP measures is set forth below.  

NON-GAAP FINANCIAL MEASURES RECONCILIATION
(dollars in thousands)
(Unaudited)
		9/30/2025			6/30/2025			9/30/2024
Tangible Book Value Per Share
Equity (GAAP)		$	692,013		$	692,805		$	669,021
Less: Intangible assets			553			553			553
Tangible equity (Non-GAAP)		$	691,460		$	692,252		$	668,468
Shares outstanding			18,554			18,851			19,010
Tangible book value per share (Non-GAAP)			37.27			36.72			35.16
Book value per share			37.30			36.75			35.19
Tangible Equity to Tangible Assets
Total Assets (GAAP)		$	6,349,024		$	6,348,375		$	6,109,680
Less: Intangible assets			553			553			553
Tangible assets (Non-GAAP)		$	6,348,471		$	6,347,822		$	6,109,127
Consolidated Equity to Assets (GAAP)			10.90	%		10.91	%		10.95	%
Consolidated Tangible Equity to Tangible Assets (Non-GAAP)			10.89	%		10.91	%		10.94	%
		Three months ended										Nine Months Ended
Efficiency and Adjusted Efficiency Ratios		9/30/2025			6/30/2025			9/30/2024				9/30/2025			9/30/2024
Net interest income (GAAP)	A	$	43,119		$	41,746		$	38,671			$	125,238		$	113,037
Non-interest income (GAAP)	B		4,689			4,852			4,931				14,515			15,425
Less: Net gains on equity securities			-			-			23				-			1,383
Revenue used for efficiency ratio (Non-GAAP)	C	$	47,808		$	46,598		$	43,579			$	139,753		$	127,079
Total noninterest expense (GAAP)	D	$	26,242		$	26,223		$	26,200			$	78,794		$	77,562
Less: Other real estate expense, net	E		8			522			204				558			294
Expense used for efficiency ratio (Non-GAAP)	F	$	26,234		$	25,701		$	25,996			$	78,236		$	77,268
Efficiency Ratio (GAAP)	D/(A+B)		54.89	%		56.27	%		60.09	%			56.38	%		60.38	%
Adjusted Efficiency Ratio (Non-GAAP)	F/C		54.87	%		55.15	%		59.65	%			55.98	%		60.80	%

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