v3.26.1
Investment Securities
 6 Months Ended
Jun. 30, 2026
Investment Securities [Abstract]  
Investment Securities
(4) Investment Securities

(a) Debt Securities available for sale

The amortized cost and fair value of the debt securities available for sale are as follows:

 
  
June 30, 2026
  
(dollars in thousands)
  
Amortized
Cost
    
Gross
Unrealized
Gains
    
Gross
Unrealized
Losses
    
Fair
Value
  
 
                        
U.S. government sponsored enterprises
  
$
14,992
    
$
-
    
$
36
    
$
14,956
  
State and political subdivisions
    
9
      
-
      
-
      
9
  
Mortgage backed securities and collateralized mortgage obligations - residential
    
220,584
      
275
      
17,258
      
203,601
  
Corporate bonds
    
74,974
      
11
      
1,181
      
73,804
  
Small Business Administration - guaranteed participation securities
    
10,906
      
-
      
753
      
10,153
  
Other
    
690
      
28
      
-
      
718
  
Total Securities Available for Sale
  
$
322,155
    
$
314
    
$
19,228
    
$
303,241
  

 
  
December 31, 2025
  
(dollars in thousands)
  
Amortized
Cost
    
Gross
Unrealized
Gains
    
Gross
Unrealized
Losses
    
Fair
Value
  
 
                        
U.S. government sponsored enterprises
  
$
31,939
    
$
18
    
$
185
    
$
31,772
  
State and political subdivisions
    
9
      
-
      
-
      
9
  
Mortgage backed securities and collateralized mortgage obligations - residential
    
221,611
      
543
      
15,864
      
206,290
  
Corporate bonds
    
59,972
      
99
      
139
      
59,932
  
Small Business Administration - guaranteed participation securities
    
12,427
      
-
      
717
      
11,710
  
Other
    
689
      
16
      
-
      
705
  
 
                                
Total Securities Available for Sale
  
$
326,647
    
$
676
    
$
16,905
    
$
310,418
  

The following table categorizes the debt securities included in the available for sale portfolio as of June 30, 2026, based on the securities’ final maturity. Actual maturities may differ because of securities prepayments and the right of certain issuers to call or prepay their obligations without penalty. Debt securities not due at a single maturity date are presented separately:

 
  
June 30, 2026
  
(dollars in thousands)
  
Amortized
Cost
    
Fair
Value
  
 
            
Due in one year or less
  
$
10,041
    
$
10,037
  
Due after one year through five years
    
80,624
      
79,450
  
Mortgage backed securities and collateralized mortgage obligations - residential
    
220,584
      
203,601
  
Small Business Administration - guaranteed participation securities
    
10,906
      
10,153
  
 
  
$
322,155
    
$
303,241
  
Gross unrealized losses on debt securities available for sale and the related fair values aggregated by the length of time that individual securities have been in an unrealized loss position, were as follows:

 
  
June 30, 2026
  
  
  
Less than
12 months
    
12 months
or more
    
Total
  
(dollars in thousands)
  
Fair
Value
    
Gross
Unrealized
Loss
    
Fair
Value
    
Gross
Unrealized
Loss
    
Fair
Value
    
Gross
Unrealized
Loss
  
 
                                    
U.S. government sponsored enterprises
  
$
4,997
    
$
3
    
$
9,959
    
$
33
    
$
14,956
    
$
36
  
Mortgage backed securities and collateralized mortgage obligations - residential
    
17,368
      
296
      
159,835
      
16,962
      
177,203
      
17,258
  
Corporate bonds
    
71,293
      
1,181
      
-
      
-
      
71,293
      
1,181
  
Small Business Administration - guaranteed participation securities
    
-
      
-
      
10,153
      
753
      
10,153
      
753
  
 
                                                
Total
  
$
93,658
    
$
1,480
    
$
179,947
    
$
17,748
    
$
273,605
    
$
19,228
  

 
  
December 31, 2025
  
 
  
Less than
12 months
    
12 months
or more
    
Total
  
(dollars in thousands)
  
Fair
Value
    
Gross
Unrealized
Loss
    
Fair
Value
    
Gross
Unrealized
Loss
    
Fair
Value
    
Gross
Unrealized
Loss
  
 
                                    
U.S. government sponsored enterprises
  
$
1,998
    
$
2
    
$
24,756
    
$
183
    
$
26,754
    
$
185
  
Mortgage backed securities and collateralized mortgage obligations - residential
    
-
      
-
      
178,551
      
15,864
      
178,551
      
15,864
  
Corporate bonds
    
34,842
      
139
      
-
      
-
      
34,842
      
139
  
Small Business Administration - guaranteed participation securities
    
-
      
-
      
11,710
      
717
      
11,710
      
717
  
 
                                                
Total
  
$
36,840
    
$
141
    
$
215,017
    
$
16,764
    
$
251,857
    
$
16,905
  

There were no allowance for credit losses recorded for debt securities available for sale during the three and six months ended June 30, 2026 and 2025.
The proceeds from sales, calls, and maturities of debt securities available for sale, and related gross realized gains and gross realized losses from sales and calls during the three and six months ended June 30, 2026 and 2025 are as follows:

 
  
Three months ended June 30,
  
(dollars in thousands)
  
2026
    
2025
  
 
            
Proceeds from sales
  
$
-
    
$
-
  
Proceeds from calls/paydowns
    
11,088
      
10,641
  
Proceeds from maturities
    
-
      
25,050
  
Gross realized gains
    
-
      
-
  
Gross realized losses
    
-
      
-
  

 
  
Six months ended June 30,
  

 
2026
    
2025
  
(dollars in thousands)
            
 
            
Proceeds from sales
  
$
-
    
$
-
  
Proceeds from calls/paydowns
    
28,961
      
24,364
  
Proceeds from maturities
    
15,000
      
60,050
  
Gross realized gains
    
-
      
-
  
Gross realized losses
    
-
      
-
  

There were no transfers of debt securities available for sale during the three and six months ended June 30, 2026 and 2025.

(b) Held to maturity securities

The amortized cost and fair value of the held to maturity securities are as follows:

 
  
June 30, 2026
  
(dollars in thousands)
  
Amortized
Cost
    
Gross
Unrecognized
Gains
    
Gross
Unrecognized
Losses
    
Fair
Value
  
 
                        
Mortgage backed securities and collateralized mortgage obligations - residential
  
$
3,842
    
$
71
    
$
46
    
$
3,867
  
Total held to maturity
  
$
3,842
    
$
71
    
$
46
    
$
3,867
  

 
  
December 31, 2025
  
(dollars in thousands)
  
Amortized
Cost
    
Gross
Unrecognized
Gains
    
Gross
Unrecognized
Losses
    
Fair
Value
  
 
                        
Mortgage backed securities and collateralized mortgage obligations - residential
  
$
4,339
    
$
90
    
$
40
    
$
4,389
  
Total held to maturity
  
$
4,339
    
$
90
    
$
40
    
$
4,389
  
The following table categorizes the debt securities included in the held to maturity portfolio as of June 30, 2026, based on the securities’ final maturity.   Actual maturities may differ because of securities prepayments and the right of certain issuers to call or prepay their obligations without penalty.  Debt securities not due at a single maturity date are presented separately:

 
  
June 30, 2026
  
(dollars in thousands)
  
Amortized
    
Fair
  
 
  
Cost
    
Value
  
Mortgage backed securities and collateralized mortgage obligations - residential
  
$
3,842
    
$
3,867
  
 
  
$
3,842
    
$
3,867
  

All held to maturity securities are held at amortized cost on the financial statements.

Gross unrecognized losses on held to maturity securities and the related fair values aggregated by the length of time that individual securities have been in an unrealized loss position, were as follows:

 
  
June 30, 2026
  
(dollars in thousands)
  
Less than
12 months
    
12 months
or more
    
Total
  
 
  
Fair
Value
    
Gross
Unrec
Loss
    
Fair
Value
    
Gross
Unrec.
Loss
    
Fair
Value
    
Gross
Unrec.
Loss
  
Mortgage backed securities and collateralized mortgage obligations - residential
  
$
114
    
$
2
    
$
1,202
    
$
44
    
$
1,316
    
$
46
  
 
                                                
Total
  
$
114
    
$
2
    
$
1,202
    
$
44
    
$
1,316
    
$
46
  

 
  
December 31, 2025
  
(dollars in thousands)
  
Less than
12 months
    
12 months
or more
    
Total
  
 
  
Fair
Value
    
Gross
Unrec.
Loss
    
Fair
Value
    
Gross
Unrec.
Loss
    
Fair
Value
    
Gross
Unrec.
Loss
  
Mortgage backed securities and collateralized mortgage obligations - residential
  
$
123
    
$
-
    
$
1,485
    
$
40
    
$
1,608
    
$
40
  
 
                                                
Total
  
$
123
    
$
-
    
$
1,485
    
$
40
    
$
1,608
    
$
40
  

There were no sales or transfers of held to maturity securities during the three and six months ended June 30, 2026 and 2025.

There was no allowance for credit losses recorded for held to maturity securities during the three and six months ended June 30, 2026.  There were no securities on non-accrual status and all securities were performing in accordance with contractual terms.
(c) Equity Securities

During the second quarter of 2026, TrustCo recognized an $844 thousand unrealized gain on equity securities resulting from the conversion of Visa Class B-2 shares into a combination of Visa Class B‑3 and Visa Class C shares and the fair-value recognition of the Class C shares received. The Company had not sold the resulting Class C shares as of June 30, 2026 and the value of the shares are recorded in other assets on the Consolidated Statements of Financial Condition. The Company originally obtained the Visa Class B shares in 2008.

(d) Securities in an unrealized loss position

As of June 30, 2026, the Company’s securities portfolio included certain securities which were in an unrealized loss position, and are discussed below.

U.S. government sponsored enterprises:

In the case of unrealized losses on U.S. government sponsored enterprises, because the decline in fair value was attributable to changes in interest rates rather than credit deterioration. The Company does not intend to sell these securities and believes it is not more likely than not that it will be required to sell them before recovery of their amortized cost. The securities remain investment grade, and no material credit downgrades occurred during the second quarter of 2026. As of June 30, 2026, three out of three securities were in an unrealized loss position.  All securities are performing.

Mortgage-backed securities and collateralized mortgage obligations – residential:

As of June 30, 2026, all mortgage-backed securities and collateralized mortgage obligations held by the Company were issued by U.S. government sponsored entities and agencies, primarily Ginnie Mae, Fannie Mae and Freddie Mac, institutions which the government has affirmed its commitment to support.  The decline in fair value was attributable to changes in interest rates rather than credit deterioration. The Company does not intend to sell these securities and believes it is not more likely than not that it will be required to sell them before recovery of their amortized cost. The securities remain investment grade, and no material credit downgrades occurred during the second quarter of 2026.  As of June 30, 2026, 115 out of 124 securities were in an unrealized loss position.  All securities are performing.

Small Business Administration (SBA) - guaranteed participation securities:

As of June 30, 2026, all of the SBA securities held by the Company were issued and guaranteed by the U.S. Small Business Administration.  The decline in fair value was attributable to changes in interest rates rather than credit deterioration. The Company does not intend to sell these securities and believes it is not more likely than not that it will be required to sell them before recovery of their amortized cost. The securities remain investment grade, and no material credit downgrades occurred during the second quarter of 2026. As of June 30, 2026, eight out of eight securities were in an unrealized loss position. All securities are performing.
Corporate Bonds:

As of June 30, 2026, corporate bonds held by the Company are investment grade quality. The decline in fair value was attributable to changes in interest rates rather than credit deterioration. The Company does not intend to sell these securities and believes it is not more likely than not that it will be required to sell them before recovery of their amortized cost. The securities remain investment grade, and no material credit downgrades occurred during the second quarter of 2026. As of June 30, 2026, 11 out of 12 securities were in an unrealized loss position. All securities are performing.