UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2026

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from __________ to _________

Commission File Number 000-10592

TRUSTCO BANK CORP NY

(Exact name of registrant as specified in its charter)

NEW YORK	14-1630287
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

5 SARNOWSKI DRIVE, GLENVILLE, NEW YORK
ATTENTION: CORPORATE SECRETARY	12302
(Address of principal executive offices)	(Zip Code)

(518) 377‑3311

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

	Title of each class		Trading Symbol(s)		Name of each exchange on which registered
	Common Stock, $1.00 par value		TRST		Nasdaq Global Select Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. ☒ Yes ☐ No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

☒Yes ☐ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☐	Accelerated filer ☒
Non-accelerated filer ☐	Smaller reporting company ☐
	Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). ☐ Yes ☒ No

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

Common Stock			Number of Shares Outstanding as of October 31, 2026

$1.00 Par Value			16,527,740

TrustCo Bank Corp NY

INDEX

DESCRIPTION			PAGE NO.

	Cautionary Note Regarding Forward-Looking Statements		4

	Part I.	FINANCIAL INFORMATION

	Item 1.	Consolidated Interim Financial Statements (Unaudited):

		Consolidated Statements of Income for the three-month and nine-month periods ended September 30, 2026 and 2025	6

		Consolidated Statements of Comprehensive Income for the three-month and nine-month periods ended September 30, 2026 and 2025	7

		Consolidated Statements of Financial Condition as of September 30, 2026 and December 31, 2025	8

		Consolidated Statements of Changes in Shareholders’ Equity for the three-month and nine-month periods ended September 30, 2026 and 2025	9

		Consolidated Statements of Cash Flows for the nine-month periods ended September 30, 2026 and 2025	10

		Notes to Consolidated Interim Financial Statements	11

		Report of Independent Registered Public Accounting Firm	51

	Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	52

	Item 3.	Quantitative and Qualitative Disclosures About Market Risk	72

	Item 4.	Controls and Procedures	72

	Part II.	OTHER INFORMATION

	Item 1.	Legal Proceedings	73

	Item 1A.	Risk Factors	73

	Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	73

	Item 3.	Defaults Upon Senior Securities	74

	Item 4.	Mine Safety Disclosures	74

	Item 5.	Other Information	74

	Item 6.	Exhibits	74

Index

Cautionary Note Regarding Forward-Looking Statements

Statements included in this report and in future filings by TrustCo with the Securities and Exchange Commission (the “SEC”), in TrustCo’s press releases, and in oral statements made with the approval of an authorized executive officer that are not historical or current facts, are “forward-looking statements” made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and are subject to certain risks and uncertainties that could cause actual results to differ materially from historical earnings and those presently anticipated or projected. Forward-looking statements can be identified by the use of such words as may, will, should, could, would, estimate, project, believe, intend, anticipate, plan, seek, expect and similar expressions. TrustCo wishes to caution readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made.

In addition to factors described under Part II, Item 1A, Risk Factors, and under the Risk Factor discussion in TrustCo’s Annual Report on Form 10-K for the year ended December 31, 2025, the factors listed below, 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.

Risks Related to Our Lending Activities

•

changes in interest rates may significantly impact our financial condition and results of operations;

•

external economic factors, such as changes in monetary policy and inflation and deflation, may have an adverse effect on our business, financial condition and results of operations;

•

we are exposed to credit risk in our lending activities;

•

our emphasis on residential mortgage loans exposes us to lending risks, and any weakness in the residential real estate markets could adversely affect our performance;

•

our commercial loan portfolio is increasing and the inherently higher risk of loss may lead to additional provisions for credit losses or charge-offs, which would negatively impact earnings and capital;

•

if our allowance for credit losses on loans is not sufficient to cover expected loan losses, our earnings could decrease;

•

we may not be able to meet the cash flow requirements of our depositors or borrowers or meet our operating cash needs to fund corporate expansion and other activities;

•

we are subject to claims and litigation pertaining to fiduciary responsibility and lender liability;

•

the strict enforcement of federal laws and regulations regarding cannabis could result in our inability to continue to provide financial products and services to customers that do business in the cannabis industry, legal action taken against us, or exposure to additional liabilities and compliance costs;

Risks Related to Our Operations

•

we are dependent upon the services of the management team;

•

our disclosure controls and procedures may not prevent or detect all errors or acts of fraud;

Index

•

if the business continuity and disaster recovery plans that we have in place are not adequate to continue our operations in the event of a disaster, the business disruption can adversely impact its operations;

•

our risk management framework may not be effective in mitigating risk and loss;

•

new lines of business or new products and services may subject us to additional risks;

•

digital banking trends may create deposit volatility, which could adversely affect our operations, profitability and competitive position;

•

our business may be adversely affected by the prevalence of fraud and other financial crimes;

•

we are exposed to climate risk;

•

societal responses to climate change could adversely affect our business and performance, including indirectly through impacts on our customers;

•

environmental, social and governance risks and diversity, equity, and inclusion risks could adversely affect our reputation and shareholder, employee, client, and third party relationships and may negatively affect our stock price;

Risks Related to Market Conditions

•

a prolonged economic downturn, especially one affecting our geographic market area, will adversely affect our operations and financial results;

•

instability in global economic conditions and geopolitical matters, (including the conflict involving the United States (“U.S.”), Israel and Iran), as well as volatility in financial markets, could have a material adverse effect on our results of operations and financial condition;

•

any downgrade in the credit rating of the U.S. government or default by the U.S. government as a result of political conflicts over legislation to raise the U.S. government’s debt limit may have a material adverse effect on us;

•

the soundness of other financial institutions could adversely affect us;

•

any government shutdown could adversely affect the U.S. and global economy and our liquidity, financial condition and earnings;

•

the trust wealth management fees we receive may decrease as a result of poor investment performance, in either relative or absolute terms, which could decrease our revenues and net earnings;

Risks Related to Compliance and Regulation

•

regulatory capital rules could slow our growth, cause us to seek to raise additional capital, or both;

•

changes in laws and regulations and the cost of regulatory compliance with new laws and regulations may adversely affect our operations and our income;

•

we are subject to numerous laws designed to protect consumers, including the CRA and fair lending laws, and a failure to comply with these laws could lead to a wide variety of sanctions;

•

changes in cybersecurity or privacy regulations may increase our compliance costs, limit our ability to gain insight from data and lead to increased scrutiny;

•

restrictions on data collection and use may limit opportunities to gain business insights useful to running our business and offering innovative products and services;

Index

•

non-compliance with the Bank Secrecy Act, or other laws and regulations could result in fines or sanctions;

•

changes in tax laws may adversely affect us, and the Internal Revenue Service or a court may disagree with our tax positions, which may result in adverse effects on our business, financial condition, and results of operations or cash flows;

•

we are subject to regulatory limitations and other limitations that may affect our ability to pay dividends to our stockholders or to repurchase our common stock;

•

we may be subject to a higher effective tax rate if Trustco Realty Corp. fails to qualify as a real estate investment trust;

•

changes in accounting standards could impact reported earnings;

Risks Related to Competition

•

strong competition within the Bank’s market areas could hurt profits and slow growth;

•

consumers and businesses are increasingly using non-banks to complete their financial transactions, which could adversely affect our business and results of operations;

Risks Related to Cybersecurity, Third Parties, and Technology

•

our business could be adversely affected by third-party service providers, data breaches, and cyber-attacks;

•

the development and use of artificial intelligence presents risks and challenges that may adversely impact our business;

•

a failure in or breach of our operational or security systems or infrastructure, or those of third parties, could disrupt our businesses, and adversely impact our results of operations, liquidity and financial condition, as well as cause reputational harm;

•

unauthorized disclosure of sensitive or confidential client or customer information, whether through a breach of our computer systems or otherwise, could severely harm our business;

•

we could suffer a material adverse impact from interruptions in the effective operation of, or security breaches affecting, our computer systems;

Risks Related to Ownership of Our Securities

•

provisions in our articles of incorporation and bylaws and New York law may discourage or prevent takeover attempts, and these provisions may have the effect of reducing the market price of our stock;

•

we cannot guarantee that the allocation of capital to various alternatives, including stock repurchase plans, will enhance long-term stockholder value; and

•

actions of activist shareholders could negatively affect our business and the value of our common stock and cause us to incur significant expenses.

You should not rely upon forward-looking statements as predictions of future events. Although TrustCo believes that the expectations reflected in the forward‑looking statements are reasonable, it cannot guarantee that the future results, levels of activity, performance or events and circumstances reflected in the forward-looking statements will be achieved or occur. The foregoing list should not be construed as exhaustive, and the Company disclaims any obligation to subsequently revise any forward-looking statements to reflect events or circumstances after the date of such statements, or to reflect the occurrence of anticipated or unanticipated events, except to the extent required by law.

Index

TRUSTCO BANK CORP NY

Consolidated Statements of Income (Unaudited)

(dollars in thousands, except per share data)

	Three months ended					Nine months ended
	September 30,					September 30,
	2026			2025		2026		2025

Interest and dividend income:
Interest and fees on loans	$	60,875		$	55,953	$	177,197	$	163,960
Interest and dividends on securities available for sale:
U. S. government sponsored enterprises		86			599		346		1,809
State and political subdivisions		-			1		-		1
Mortgage-backed securities and collateralized mortgage obligations - residential		1,509			1,583		4,464		4,679
Corporate bonds		820			265		2,290		735
Small Business Administration-guaranteed participation securities		56			72		178		228
Other securities		8			7		23		22
Total interest and dividends on securities available for sale		2,479			2,527		7,301		7,474

Interest on held to maturity securities:
Mortgage-backed securities and collateralized mortgage obligations - residential		43			52		134		163
Total interest on held to maturity securities		43			52		134		163

Federal Home Loan Bank stock		112			125		361		405
Interest on federal funds sold and other short-term investments		6,098			7,376		18,547		21,320
Total interest income		69,607			66,033		203,540		193,322

Interest expense:
Interest on deposits:
Interest-bearing checking		642			483		1,726		1,577
Savings accounts		730			741		2,108		2,208
Money market deposit accounts		1,597			2,065		4,780		6,140
Time deposits		19,245			19,427		56,465		57,605
Interest on short-term borrowings		354			198		1,124		554
Total interest expense		22,568			22,914		66,203		68,084

Net interest income		47,039			43,119		137,337		125,238
Provision for credit losses		850			250		2,450		1,200
Net interest income after provision for credit losses		46,189			42,869		134,887		124,038

Noninterest income:
Trustco financial services income		2,059			1,967		6,174		5,905
Fees for services to customers		2,409			2,429		7,236		7,340
Net gains on equity securities		56			-		900		-
Other		294			293		1,261		1,270
Total noninterest income		4,818			4,689		15,571		14,515

Noninterest expenses:
Salaries and employee benefits		12,776			12,727		38,042		36,497
Net occupancy expense		4,526			4,470		13,449		13,542
Equipment expense		2,306			1,938		6,410		5,800
Professional services		1,744			1,571		5,238		5,183
Outsourced services		2,800			2,492		8,204		7,652
Advertising expense		468			290		1,448		955
FDIC and other insurance		1,104			1,052		3,358		3,376
Other real estate (income) expense, net		(12	)		8		150		558
Other		2,307			1,694		7,035		5,231
Total noninterest expenses		28,019			26,242		83,334		78,794

Income before taxes		22,988			21,316		67,124		59,759
Income taxes		5,670			5,058		16,556		14,187

Net income	$	17,318		$	16,258	$	50,568	$	45,572

Net income per share:
- Basic	$	1.03		$	0.87	$	2.92	$	2.41

- Diluted	$	1.02		$	0.86	$	2.91	$	2.41

See accompanying notes to unaudited consolidated interim financial statements.

Index

TRUSTCO BANK CORP NY

Consolidated Statements of Comprehensive Income (Unaudited)

(dollars in thousands)

	Three months ended						Nine months ended
	September 30,						September 30,
	2026			2025			2026			2025

Net income	$	17,318		$	16,258		$	50,568		$	45,572

Net unrealized holding (loss) gain on securities available for sale		(8,599	)		2,262			(11,284	)		10,747
Tax effect		2,237			(589	)		2,922			(2,790	)

Net unrealized (loss) gain on securities available for sale, net of tax		(6,362	)		1,673			(8,362	)		7,957


Amortization of net actuarial gain		(718	)		(517	)		(2,152	)		(1,551	)
Amortization of prior service cost		4			2			10			9
Tax effect		185			134			556			401
Amortization of net actuarial gain and prior service cost on pension and postretirement plans, net of tax		(529	)		(381	)		(1,586	)		(1,141	)

Other comprehensive (loss) income, net of tax		(6,891	)		1,292			(9,948	)		6,816
Comprehensive income	$	10,427		$	17,550		$	40,620		$	52,388

See accompanying notes to unaudited consolidated interim financial statements.

Index

TRUSTCO BANK CORP NY

Consolidated Statements of Financial Condition (Unaudited)

(dollars in thousands, except share data)

	September 30, 2026			December 31, 2025
ASSETS:

Cash and due from banks	$	42,914		$	50,569
Federal funds sold and other short term investments		554,402			679,858
Total cash and cash equivalents		597,316			730,427

Securities available for sale		294,023			310,418
Held to maturity securities ($3,562 and $4,389 fair value at September 30, 2026 and December 31, 2025, respectively)		3,640			4,339

Federal Home Loan Bank stock		6,756			6,601
Loans, net of deferred costs		5,454,286			5,252,460
Less:
Allowance for credit losses on loans		55,162			52,205
Net loans		5,399,124			5,200,255

Bank premises and equipment, net		42,266			40,707
Operating lease right-of-use assets		32,715			33,638
Other assets		118,220			114,315

Total assets	$	6,494,060		$	6,440,700

LIABILITIES:
Deposits:
Demand	$	817,555		$	814,908
Interest-bearing checking		1,077,289			1,077,141
Savings accounts		1,060,493			1,069,564
Money market deposit accounts		429,555			457,389
Time deposits		2,299,326			2,138,415
Total deposits		5,684,218			5,557,417

Short-term borrowings		98,108			120,054
Operating lease liabilities		35,075			36,391
Accrued expenses and other liabilities		45,334			40,249

Total liabilities		5,862,735			5,754,111

SHAREHOLDERS’ EQUITY:
Capital stock par value $1.00; 30,000,000 shares authorized; 20,118,509 shares issued at both September 30, 2026 and December 31, 2025,16,527,740 and 18,029,107 shares outstanding at September 30, 2026 and December 31, 2025, respectively		20,119			20,119
Surplus		261,758			260,333
Undivided profits		510,684			479,996
Accumulated other comprehensive income, net of tax		76			10,024
Treasury stock at cost - 3,590,769 and 2,089,402 shares at September 30, 2026 and December 31, 2025, respectively		(161,312	)		(83,883	)

Total shareholders’ equity		631,325			686,589

Total liabilities and shareholders’ equity	$	6,494,060		$	6,440,700

See accompanying notes to unaudited consolidated interim financial statements.

Index

TRUSTCO BANK CORP NY

Consolidated Statements of Changes in Shareholders’ Equity (Unaudited)

(dollars in thousands, except share and per share data)

								Accumulated
								Other
	Capital				Undivided			Comprehensive			Treasury
	Stock		Surplus		Profits			Income (Loss)			Stock			Total

Beginning balance, January 1, 2025	$	20,097	$	258,874	$	446,503		$	(3,861	)	$	(45,270	)	$	676,343

Net income		-		-		14,275			-			-			14,275
Other comprehensive income, net of tax		-		-		-			3,729			-			3,729
Stock Based Compensation Expense		-		308		-			-			-			308
Cash dividend declared, $0.36 per share		-		-		(6,847	)		-			-			(6,847	)

Ending balance, March 31, 2025	$	20,097	$	259,182	$	453,931		$	(132	)	$	(45,270	)	$	687,808

Net income		-		-		15,039			-			-			15,039
Other comprehensive income, net of tax		-		-		-			1,795			-			1,795
Stock Based Compensation Expense		-		308		-			-			-			308
Cash dividend declared, $0.36 per share		-		-		(6,812	)		-			-			(6,812	)
Purchase of treasury stock 168,735 shares		-		-		-			-			(5,333	)		(5,333	)

Ending balance, June 30, 2025	$	20,097	$	259,490	$	462,158		$	1,663		$	(50,603	)	$	692,805

Net income		-		-		16,258			-			-			16,258
Other comprehensive income, net of tax		-		-		-			1,292			-			1,292
Stock Based Compensation Expense		-		309		-			-			-			309
Exercise of stock option, net of repurchases		6		181		-			-			(198	)		(11	)
Cash dividend declared, $0.38 per share		-		-		(7,102	)		-			-			(7,102	)
Purchase of treasury stock 298,177 shares		-		-		-			-			(11,538	)		(11,538	)

Ending balance, September 30, 2025	$	20,103	$	259,980	$	471,314		$	2,955		$	(62,339	)	$	692,013

Beginning balance, January 1, 2026	$	20,119	$	260,333	$	479,996		$	10,024		$	(83,883	)	$	686,589

Net income		-		-		16,285			-			-			16,285
Other comprehensive loss, net of tax		-		-		-			(1,783	)		-			(1,783	)
Stock Based Compensation Expense		-		475		-			-			-			475
Purchase of treasury stock 522,226 shares		-		-		-			-			(23,905	)		(23,905	)
Cash dividend declared, $0.38 per share		-		-		(6,741	)		-			-			(6,741	)

Ending balance, March 31, 2026	$	20,119	$	260,808	$	489,540		$	8,241		$	(107,788	)	$	670,920

Net Income		-		-		16,965			-			-			16,965
Other comprehensive loss, net of tax		-		-		-			(1,274	)		-			(1,274	)
Stock Based Compensation Expense		-		475		-			-			-			475
Purchase of treasury stock 479,141 shares		-		-		-			-			(24,569	)		(24,569	)
Cash dividend declared, $0.38 per share		-		-		(6,508	)		-			-			(6,508	)

Ending balance, June 30, 2026	$	20,119	$	261,283	$	499,997		$	6,967		$	(132,357	)	$	656,009

Net Income		-		-		17,318			-			-			17,318
Other comprehensive loss, net of tax		-		-		-			(6,891	)		-			(6,891	)
Stock Based Compensation Expense		-		475		-			-			-			475
Purchase of treasury stock 500,000 shares		-		-		-			-			(28,955	)		(28,955	)
Cash dividend declared, $0.40 per share		-		-		(6,631	)		-			-			(6,631	)

Ending balance, September 30, 2026	$	20,119	$	261,758	$	510,684		$	76		$	(161,312	)	$	631,325

See accompanying notes to unaudited consolidated interim financial statements.

Index

TRUSTCO BANK CORP NY

Consolidated Statements of Cash Flows (Unaudited)

(dollars in thousands)

	Nine months ended September 30,
	2026			2025

Cash flows from operating activities:
Net income	$	50,568		$	45,572

Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation		3,775			3,544
Amortization of right-of-use asset		4,944			4,992
Net gain on sale of other real estate owned		(17	)		(40	)
Writedown of other real estate owned		60			547
Net gain on sale of building		-			-
Provision for credit losses		2,450			1,200
Deferred tax expense		737			2,812
Net amortization of securities		550			680
Stock based compensation expense		1,425			925
Net gain on sale of bank premises and equipment		(20	)		-
Net gain on securities transactions		(900	)		-
Decrease (Increase) in taxes receivable		2,406			(5,732	)
Increase in interest receivable		(1,705	)		(1,362	)
Decrease in interest payable		(148	)		(301	)
Increase in other assets		(1,798	)		(2,159	)
Decrease in operating lease liabilities		(5,337	)		(5,635	)
Increase (decrease) in accrued expenses and other liabilities		3,358			(3,910	)
Total adjustments		9,780			(4,439	)
Net cash provided by operating activities		60,348			41,133

Cash flows from investing activities:

Proceeds from sales, paydowns and calls of securities available for sale		39,427			54,469
Proceeds from paydowns of held to maturity securities		680			746
Purchases of securities available for sale		(59,847	)		(76,113	)
Proceeds from maturities of securities available for sale		25,000			70,050
Purchases of Federal Home Loan Bank stock		(155	)		(94	)
Net increase in loans		(201,746	)		(93,367	)
Proceeds from sale of securities transactions		900			-
Proceeds from dispositions of other real estate owned		245			531
Proceeds from dispositions of bank premises and equipment		74			-
Purchases of bank premises and equipment		(5,388	)		(9,480	)
Net cash used in investing activities		(200,810	)		(53,258	)

Cash flows from financing activities:

Net increase in deposits		126,801			90,290
Net change in short-term borrowings		(21,946	)		12,968
Stock based award tax withholding payments		-			(11	)
Purchases of treasury stock		(77,429	)		(16,871	)
Dividends paid		(20,075	)		(20,507	)
Net cash provided by financing activities		7,351			65,869
Net (decrease) increase in cash and cash equivalents		(133,111	)		53,744
Cash and cash equivalents at beginning of period		730,427			641,812
Cash and cash equivalents at end of period	$	597,316		$	695,556

Supplemental Disclosure of Cash Flow Information:
Cash paid during the year for:
Interest paid	$	66,351		$	68,385
Income taxes paid		14,137			14,368
Other non cash items:
Transfer of loans to other real estate owned		77			98
(Decrease) increase in dividends payable		(195	)		254
Change in unrealized (loss) gain on securities available for sale-gross of deferred taxes		(11,284	)		10,747
Change in deferred tax effect on unrealized loss (gain) on securities available for sale		2,922			(2,790	)
Amortization of net actuarial gain and prior service cost on pension and postretirement plans		(2,142	)		(1,542	)
Change in deferred tax effect of amortization of net actuarial gain postretirement benefit plans		556			401

See accompanying notes to unaudited consolidated interim financial statements.

Index

TRUSTCO BANK CORP NY

Notes to Consolidated Interim Financial Statements

(Unaudited)

(1) Financial Statement Presentation

The unaudited Consolidated Interim Financial Statements of TrustCo Bank Corp NY (the “Company” or “TrustCo”) include the accounts of the Company’s subsidiary, Trustco Bank (also referred to as the “Bank”) and other subsidiaries after elimination of all significant intercompany accounts and transactions. Prior period amounts are reclassified when necessary to conform to the current period presentation. The net income reported for the three and nine months ended September 30, 2026 is not necessarily indicative of the results that may be expected for the year ending December 31, 2026, or any interim periods. These financial statements consider events that occurred through the date of filing.

In the opinion of the management of the Company, the accompanying unaudited Consolidated Interim Financial Statements contain all recurring adjustments necessary to present fairly the financial condition as of September 30, 2026, the results of operations for the three and nine months ended September 30, 2026 and 2025, and the cash flows for the nine months ended September 30, 2026 and 2025. The accompanying unaudited Consolidated Interim Financial Statements should be read in conjunction with the Company’s year-end audited Consolidated Financial Statements, including notes thereto, which are included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025. The accompanying unaudited Consolidated Interim Financial Statements have been prepared in accordance with the applicable rules of the Securities and Exchange Commission (the “SEC”) and, therefore, do not include all information and notes necessary for a complete presentation of financial condition, results of operations and cash flow activity required in accordance with accounting principles generally accepted in the United States.

The accounting policies of the Company, as applied in the unaudited Consolidated Interim Financial Statements presented herein, are substantially the same as those followed on an annual basis in the Annual Report on Form 10-K for the year ended December 31, 2025 filed with the SEC on March 16, 2026.

Index

(2) Earnings Per Share

The Company computes earnings per share in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 260, Earnings Per Share (“ASC 260”). A reconciliation of the component parts of earnings per share for the three and nine months ended September 30, 2026 and 2025 is as follows:

(in thousands, except per share data)	For the three months ended				For the nine months ended
	September 30,				September 30,
	2026		2025		2026		2025


Net income	$	17,318	$	16,258	$	50,568	$	45,572
Weighted average common shares		16,842		18,755		17,317		18,912
Effect of Dilutive Securities:
Stock Options and Restricted Stock Units		97		50		81		35
Weighted average common shares including potential dilutive shares		16,939		18,805		17,398		18,947

Basic EPS	$	1.03	$	0.87	$	2.92	$	2.41

Diluted EPS	$	1.02	$	0.86	$	2.91	$	2.41

For the three months and nine months ended September 30, 2026 and 2025 there were no weighted average antidilutive stock options excluded from dilutive earnings per share.

Index

(3) Benefit Plans

The table below outlines the components of the Company’s net periodic benefit recognized during the three and nine months ended September 30, 2026 and 2025 for its pension and other post-retirement benefit plans:

	Three months ended September 30,
	Pension Benefits						Other Postretirement Benefits
(dollars in thousands)	2026			2025			2026			2025

Service cost	$	-		$	-		$	5		$	4
Interest cost		289			297			91			87
Expected return on plan assets		(952	)		(862	)		(429	)		(380	)
Amortization of net actuarial gain		(365	)		(241	)		(353	)		(276	)
Amortization of prior service cost		-			-			4			2
Net periodic benefit	$	(1,028	)	$	(806	)	$	(682	)	$	(563	)

	Nine months ended September 30,
	Pension Benefits						Other Postretirement Benefits
(dollars in thousands)		2026			2025			2026			2025

Service cost	$	-		$	-		$	15		$	13
Interest cost		868			890			271			260
Expected return on plan assets		(2,855	)		(2,585	)		(1,285	)		(1,142	)
Amortization of net actuarial gain		(1,095	)		(723	)		(1,057	)		(828	)
Amortization of prior service cost		-			-			10			9
Net periodic benefit	$	(3,082	)	$	(2,418	)	$	(2,046	)	$	(1,688	)

The Company does not expect to contribute to its pension and post-retirement benefit plans in 2026. As of September 30, 2026, no contributions have been made; however, this decision is reviewed each quarter and is subject to change based upon market conditions.

Since 2003, the Company has not subsidized retiree medical insurance premiums. However, it continues to provide medical benefits and post-retirement medical benefits to a limited number of current and retired executives in accordance with the terms of their employment contracts.

Index

(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:

	September 30, 2026
			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
(dollars in thousands)	Cost		Gains		Losses		Value

U.S. government sponsored enterprises	$	10,000	$	-	$	127	$	9,873
State and political subdivisions		9		-		-		9
Mortgage backed securities and collateralized mortgage obligations - residential		220,654		-		23,966		196,688
Corporate bonds		79,975		-		2,541		77,434
Small Business Administration - guaranteed participation securities		10,208		-		902		9,306
Other		690		23		-		713
Total Securities Available for Sale	$	321,536	$	23	$	27,536	$	294,023

	December 31, 2025
			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
(dollars in thousands)	Cost		Gains		Losses		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 September 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:

	September 30, 2026
	Amortized		Fair
(dollars in thousands)	Cost		Value

Due in one year or less	$	49	$	73
Due after one year through five years		90,625		87,956
Mortgage backed securities and collateralized mortgage obligations - residential		220,654		196,688
Small Business Administration - guaranteed participation securities		10,208		9,306
	$	321,536	$	294,023

Index

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:

	September 30, 2026
	Less than				12 months
	12 months				or more				Total
			Gross				Gross				Gross
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
(dollars in thousands)	Value		Loss		Value		Loss		Value		Loss

U.S. government sponsored enterprises	$	9,873	$	127	$	-	$	-	$	9,873	$	127
Mortgage backed securities and collateralized mortgage obligations - residential		49,501		2,299		147,187		21,667		196,688		23,966
Corporate bonds		58,502		1,490		18,932		1,051		77,434		2,541
Small Business Administration - guaranteed participation securities		-		-		9,306		902		9,306		902

Total	$	117,876	$	3,916	$	175,425	$	23,620	$	293,301	$	27,536

	December 31, 2025
	Less than				12 months
	12 months				or more				Total
			Gross				Gross				Gross
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
(dollars in thousands)	Value		Loss		Value		Loss		Value		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 was no allowance for credit losses recorded for debt securities available for sale during the three and nine months ended September 30, 2026 and 2025.

Index

The proceeds from sales, calls/paydowns and maturities of debt securities available for sale, gross realized gains and gross realized losses from sales, calls/paydowns and maturities during the three and nine months ended September 30, 2026 and 2025 are as follows:

	Three months ended September 30,
(dollars in thousands)	2026		2025

Proceeds from sales	$	-	$	-
Proceeds from calls/paydowns		10,466		30,105
Proceeds from maturities		10,000		10,000
Gross realized gains		-		-
Gross realized losses		-		-

	Nine months ended September 30,
	2026		2025
(dollars in thousands)

Proceeds from sales	$	-	$	-
Proceeds from calls/paydowns		39,427		54,469
Proceeds from maturities		25,000		70,050
Gross realized gains		-		-
Gross realized losses		-		-

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

(b) Held to maturity securities

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

	September 30, 2026
			Gross		Gross
	Amortized		Unrecognized		Unrecognized		Fair
(dollars in thousands)	Cost		Gains		Losses		Value

Mortgage backed securities and collateralized mortgage obligations - residential	$	3,640	$	13	$	91	$	3,562
Total held to maturity	$	3,640	$	13	$	91	$	3,562

	December 31, 2025
			Gross		Gross
	Amortized		Unrecognized		Unrecognized		Fair
(dollars in thousands)	Cost		Gains		Losses		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

Index

The following table categorizes the debt securities included in the held to maturity portfolio as of September 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:

	September 30, 2026
(dollars in thousands)	Amortized		Fair
	Cost		Value
Mortgage backed securities and collateralized mortgage obligations - residential	$	3,640	$	3,562
	$	3,640	$	3,562

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 unrecognized loss position, were as follows:

	September 30, 2026
	Less than				12 months
(dollars in thousands)	12 months				or more				Total
			Gross				Gross				Gross
	Fair		Unrec.		Fair		Unrec.		Fair		Unrec.
	Value		Loss		Value		Loss		Value		Loss
Mortgage backed securities and collateralized mortgage obligations - residential	$	1,384	$	33	$	1,089	$	58	$	2,473	$	91

Total	$	1,384	$	33	$	1,089	$	58	$	2,473	$	91

	December 31, 2025
	Less than				12 months
(dollars in thousands)	12 months				or more				Total
			Gross				Gross				Gross
	Fair		Unrec.		Fair		Unrec.		Fair		Unrec.
	Value		Loss		Value		Loss		Value		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 nine months ended September 30, 2026 and 2025.

There was no allowance for credit losses recorded for held to maturity securities as of September 30, 2026 and December 31, 2025. There was no credit loss expense recorded for held to maturity securities for the three and nine months ended September 30, 2026 and 2025. As of September 30, 2026, there were no securities on non-accrual status and all securities were performing in accordance with contractual terms.

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 sold all of its Visa Class C shares in the third quarter of 2026 and recorded an additional gain of $56 thousand, thus resulting in no remaining carrying value on the Company’s Statement of Financial Condition as of September 30, 2026. The Company originally obtained the Visa Class B shares in 2008.

Index

(d) Securities in an unrealized loss position

As of September 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 is attributable to changes in interest rates, and not credit quality, and because the Company does not have the intent to sell these securities and it is likely that it will not be required to sell the securities before their anticipated recovery, the securities are investment grade rated and there were no material underlying credit downgrades during the third quarter of 2026. As of September 30, 2026, two out of two securities were in an unrealized loss position. All securities are performing.

Mortgage-backed securities and collateralized mortgage obligations – residential:

At September 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. Because the decline in fair value is attributable to changes in interest rates, and not credit quality, and because the Company does not have the intent to sell these securities and it is likely that it will not be required to sell the securities before their anticipated recovery, the securities are investment grade rated and there were no material underlying credit downgrades during the third quarter of 2026. As of September 30, 2026, 150 out of 163 securities were in an unrealized loss position. All securities are performing.

Small Business Administration (SBA) - guaranteed participation securities:

At September 30, 2026, all of the SBA securities held by the Company were issued and guaranteed by the U.S. Small Business Administration. Because the decline in fair value is attributable to changes in interest rates, and not credit quality, and because the Company does not have the intent to sell these securities and it is likely that it will not be required to sell the securities before their anticipated recovery, the securities are investment grade rated and there were no material underlying credit downgrades during the third quarter of 2026. As of September 30, 2026, eight out of eight securities were in an unrealized loss position. All securities are performing.

Corporate Bonds:

At September 30, 2026, corporate bonds held by the Company are investment grade quality. Because the decline in fair value is attributable to changes in interest rates, and not credit quality, and because the Company does not have the intent to sell these securities and it is likely that it will not be required to sell the securities before their anticipated recovery, the securities are investment grade rated and there were no material underlying credit downgrades during the third quarter of 2026. As of September 30, 2026, 13 out of 13 securities were in an unrealized loss position. All securities are performing.

Index

(5) Loan Portfolio and Allowance for Credit Losses

The following tables present loans by portfolio segment:

	September 30, 2026
(dollars in thousands)	New York and
	other states*		Florida		Total
Commercial:
Commercial real estate	$	261,270	$	51,127	$	312,397
Other		19,009		1,000		20,009
Real estate mortgage - 1 to 4 family:
First mortgages		2,906,695		1,639,022		4,545,717
Home equity loans		49,174		19,462		68,636
Home equity lines of credit		294,032		204,056		498,088
Installment		6,856		2,583		9,439
Total loans, net	$	3,537,036	$	1,917,250		5,454,286
Less: Allowance for credit losses on loans						55,162
Net loans					$	5,399,124

*Includes New York, New Jersey, Vermont and Massachusetts.

	December 31, 2025
(dollars in thousands)	New York and
	other states*		Florida		Total
Commercial:
Commercial real estate	$	245,799	$	49,308	$	295,107
Other		17,841		495		18,336
Real estate mortgage - 1 to 4 family:
First mortgages		2,794,515		1,604,709		4,399,224
Home equity loans		46,421		17,615		64,036
Home equity lines of credit		265,060		199,141		464,201
Installment		8,497		3,059		11,556
Total loans, net	$	3,378,133	$	1,874,327		5,252,460
Less: Allowance for credit losses on loans						52,205
Net loans					$	5,200,255

*Includes New York, New Jersey, Vermont and Massachusetts.

At September 30, 2026 and December 31, 2025, the Company had approximately $45.7 million and $41.9 million of real estate construction loans, respectively. Of the $45.7 million in real estate construction loans at September 30, 2026, approximately $14.5 million are secured by first mortgages to residential borrowers while approximately $31.2 million are to commercial borrowers for residential construction projects. Of the $41.9 million in real estate construction loans at December 31, 2025, approximately $11.9 million were secured by first mortgages to residential borrowers while approximately $30.0 million were to commercial borrowers for residential construction projects. At September 30, 2026 and December 31, 2025, the vast majority of construction loans were in the Company’s New York market.

Index

Allowance for credit losses on loans

The level of the ACLL is based on factors that influence management’s current estimate of expected credit losses, including past events and current conditions. There were no changes in the Company’s methodology for the allowance for credit losses on loans for the period ended September 30, 2026. The Company selected the baseline economic forecast for the allowance for credit losses based on current market conditions and portfolio trends. In addition, the Company’s four quarter forecast period and four quarter straight line reversion has not changed for the period ended September 30, 2026.

The Company recorded a provision for credit losses of $850 thousand for the three months ended September 30, 2026, which is the result a provision for credit losses on loans of $1.05 million, and a benefit for credit losses on unfunded commitments of $200 thousand. The Company recorded a provision for credit losses of $2.5 million for the nine months ended September 30, 2026, which is the result of a provision for credit losses on loans of $2.8 million, and benefit for credit losses on unfunded commitments of $350 thousand.

The Company recorded a provision for credit losses of $250 thousand for the three months ended September 30, 2025, which is the result a provision for credit losses on loans of $450 thousand, and a benefit for credit losses on unfunded commitments of $200 thousand. The Company recorded a provision for credit losses of $1.2 million for the nine months ended September 30, 2025, which is the result of a provision for credit losses on loans of $1.2 million, and no provision for credit losses on unfunded commitments.

Activity in the allowance for credit losses on loans by portfolio segment for the three months ended September 30, 2026 and 2025 is summarized as follows:

	For the three months ended September 30, 2026
(dollars in thousands)			Real Estate
			Mortgage-
	Commercial		1 to 4 Family			Installment		Total
Balance at beginning of period	$	3,379	$	50,555		$	148	$	54,082
Loans charged off:
New York and other states*		-		-			4		4
Florida		-		-			15		15
Total loan chargeoffs		-		-			19		19

Recoveries of loans previously charged off:
New York and other states*		-		44			5		49
Florida		-		-			-		-
Total recoveries		-		44			5		49
Net loan (recoveries) charged off		-		(44	)		14		(30	)
Provision (credit) for credit losses		92		952			6		1,050
Balance at end of period	$	3,471	$	51,551		$	140	$	55,162

* Includes New York, New Jersey, Vermont and Massachusetts.

Index

	For the three months ended September 30, 2025
(dollars in thousands)				Real Estate
				Mortgage-
	Commercial			1 to 4 Family			Installment		Total
Balance at beginning of period	$	3,134		$	47,877		$	254	$	51,265
Loans charged off:
New York and other states*		-			-			2		2
Florida		-			-			20		20
Total loan chargeoffs		-			-			22		22

Recoveries of loans previously charged off:
New York and other states*		-			194			4		198
Florida		-			-			-		-
Total recoveries		-			194			4		198
Net loan (recoveries) charged off		-			(194	)		18		(176	)
Provision for credit losses		(3	)		446			7		450
Balance at end of period	$	3,131		$	48,517		$	243	$	51,891

* Includes New York, New Jersey, Vermont and Massachusetts.

Activity in the allowance for credit losses on loans by portfolio segment for the nine months ended September 30, 2026 and 2025 is summarized as follows:

	For the nine months ended September 30, 2026
(dollars in thousands)				Real Estate
				Mortgage-
	Commercial			1 to 4 Family			Installment			Total
Balance at beginning of period	$	3,081		$	48,895		$	229		$	52,205
Loans charged off:
New York and other states*		19			-			24			43
Florida		-			-			34			34
Total loan chargeoffs		19			-			58			77

Recoveries of loans previously charged off:
New York and other states*		-			159			35			194
Florida		40			-			-			40
Total recoveries		40			159			35			234
Net loans (recoveries) charged off		(21	)		(159	)		23			(157	)
Provision (credit) for credit losses		369			2,497			(66	)		2,800
Balance at end of period	$	3,471		$	51,551		$	140		$	55,162

* Includes New York, New Jersey, Vermont and Massachusetts.

Index

	For the nine months ended September 30, 2025
(dollars in thousands)				Real Estate
				Mortgage-
	Commercial			1 to 4 Family			Installment		Total
Balance at beginning of period	$	3,420		$	46,636		$	192	$	50,248
Loans charged off:
New York and other states*		4			99			49		152
Florida		-			-			129		129
Total loan chargeoffs		4			99			178		281

Recoveries of loans previously charged off:
New York and other states*		7			373			29		409
Florida		315			-			-		315
Total recoveries		322			373			29		724
Net loan (recoveries) charged off		(318	)		(274	)		149		(443	)
(Credit) provision for credit losses		(607	)		1,607			200		1,200
Balance at end of period	$	3,131		$	48,517		$	243	$	51,891

* Includes New York, New Jersey, Vermont and Massachusetts.

The following tables present the balance in the allowance for credit losses on loans by portfolio segment and based on impairment evaluation as of September 30, 2026 and December 31, 2025:

	As of September 30, 2026
(dollars in thousands)			1-to-4 Family
	Commercial		Residential		Installment
	Loans		Real Estate		Loans		Total
Allowance for credit losses on loans:
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	-	$	-	$	-	$	-
Collectively evaluated for impairment		3,471		51,551		140		55,162

Total ending allowance balance	$	3,471	$	51,551	$	140	$	55,162


Loans:
Individually evaluated for impairment	$	2,095	$	23,709	$	38	$	25,842
Collectively evaluated for impairment		330,311		5,088,732		9,401		5,428,444

Total ending loans balance	$	332,406	$	5,112,441	$	9,439	$	5,454,286

	As of December 31, 2025
(dollars in thousands)			1-to-4 Family
	Commercial		Residential		Installment
	Loans		Real Estate		Loans		Total
Allowance for credit losses on loans:
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	-	$	-	$	-	$	-
Collectively evaluated for impairment		3,081		48,895		229		52,205

Total ending allowance balance	$	3,081	$	48,895	$	229	$	52,205


Loans:
Individually evaluated for impairment	$	2,083	$	23,663	$	22	$	25,768
Collectively evaluated for impairment		311,360		4,903,798		11,534		5,226,692

Total ending loans balance	$	313,443	$	4,927,461	$	11,556	$	5,252,460

Index

The Company’s allowance for credit losses on unfunded commitments is recognized as a liability (accrued expenses and other liabilities) with adjustments to the reserve recognized in provision for credit losses in the consolidated statements of income.

The Company’s activity in the allowance for credit losses on unfunded commitments for the three and nine months ended September 30, 2026 and 2025 was as follows:

(In thousands)	For the three months ended September 30, 2026


Balance at June 30, 2026	$	1,712
Benefit for credit losses		(200	)
Balance at September 30, 2026	$	1,512

	For the nine months ended
	For the nine months ended
(In thousands)	September 30, 2026
Balance at January 1, 2026	$	1,862
Benefit for credit losses		(350	)
Balance at September 30, 2026	$	1,512

	For the three
	months ended
(In thousands)	September 30, 2025
Balance at June 30, 2025	$	1,962
Benefit for credit losses		(200	)
Balance at September 30, 2025	$	1,762

	For the nine
	months ended
(In thousands)	September 30, 2025
Balance at January 1, 2025	$	1,762
Provision for credit losses		-
Balance at September 30, 2025	$	1,762

Index

Loan Credit Quality

The Company categorizes commercial loans into risk categories based on relevant information about the ability of borrowers to service their debt, such as current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. On at least an annual basis, the Company’s loan grading process analyzes non-homogeneous loans, such as commercial loans and commercial real estate loans, individually by grading the loans based on credit risk. The loan grades assigned to all loan types are tested by the Company’s internal loan review department in accordance with the Company’s internal loan review policy.

The Company uses the following definitions for classified loans:

Special Mention: Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the Company’s credit position at some future date.

Substandard: Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans classified as such have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected.

Doubtful: Loans classified as doubtful have all the weaknesses inherent in those loans classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable.

Loans not meeting the criteria above that are analyzed individually as part of the above-described process are considered to be “pass” rated loans.

For homogeneous loan pools, such as residential mortgages, home equity lines of credit, and installment loans, the Company uses payment status to identify the credit risk in these loan portfolios. Payment status is reviewed on a daily basis by the Bank’s collection area and on a monthly basis with respect to determining the adequacy of the allowance for credit losses on loans. The payment status of these homogeneous pools as of September 30, 2026 and December 31, 2025 is also included in the aging of the past due loans table. Nonperforming loans shown in the table below were loans on nonaccrual status and loans over 90 days past due and accruing.

Index

As of September 30, 2026 and December 31, 2025 and based on the most recent analysis performed, the risk category of loans by class of loans, and gross charge-offs year to date for each loan type by origination year was as follows:

Loan Credit Quality	As of September 30, 2026
(in thousands)	Term Loans Amortized Cost Basis by Origination Year

	2026		2025		2024		2023		2022		Prior		Revolving Loans Amortized Cost Basis		Revolving Loan Converted to Term		Total
Commercial :
Risk rating
Pass	$	42,267	$	47,755	$	40,231	$	44,383	$	62,006	$	67,928	$	4,874	$	-	$	309,444
Special Mention		-		-		-		-		233		46		-		-		279
Substandard		-		-		890		-		1,309		475		-		-		2,674
Doubtful		-		-		-		-		-		-		-		-		-
Total Commercial Loans	$	42,267	$	47,755	$	41,121	$	44,383	$	63,548	$	68,449	$	4,874	$	-	$	312,397

Commercial Loans:
Current-period Gross writeoffs	$	-	$	-	$	-	$	-	$	19	$	-	$	-	$	-	$	19
	$	-	$	-	$	-	$	-	$	19	$	-	$	-	$	-	$	19

Commercial Other:
Risk rating
Pass	$	3,699	$	3,666	$	856	$	5,248	$	1,028	$	1,595	$	3,872	$	-	$	19,964
Special mention		-		-		-		45		-		-		-		-		45
Substandard		-		-		-		-		-		-		-		-		-
Doubtful		-		-		-		-		-		-		-		-		-
Total Commercial Real Estate Loans	$	3,699	$	3,666	$	856	$	5,293	$	1,028	$	1,595	$	3,872	$	-	$	20,009

Other Commercial Loans:
Current-period Gross writeoffs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Residential First Mortgage:
Risk rating
Performing	$	419,274	$	373,610	$	280,729	$	340,436	$	474,360	$	2,638,452	$	2,634	$	-	$	4,529,495
Nonperforming		-		-		721		1,061		1,832		12,447		161		-		16,222
Total First Mortgage:	$	419,274	$	373,610	$	281,450	$	341,497	$	476,192	$	2,650,899	$	2,795	$	-	$	4,545,717

Residential First Mortgage Loans:
Current-period Gross writeoffs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Home Equity Loans:
Risk rating
Performing	$	12,946	$	15,323	$	4,457	$	6,329	$	3,874	$	25,269	$	-	$	-	$	68,198
Nonperforming		-		15		-		-		66		357		-		-		438
Total Home Equity Loans:	$	12,946	$	15,338	$	4,457	$	6,329	$	3,940	$	25,626	$	-	$	-	$	68,636

Home Equity Loans:
Current-period Gross writeoffs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Home Equity Lines of Credit:
Risk rating
Performing	$	599	$	1,596	$	3,095	$	766	$	1,159	$	31,935	$	456,577	$	-	$	495,727
Nonperforming		-		-		187		130		60		1,713		271		-		2,361
Total Home Equity Credit Lines:	$	599	$	1,596	$	3,282	$	896	$	1,219	$	33,648	$	456,848	$	-	$	498,088

Home Equity Lines of Credit:
Current-period Gross writeoffs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Installments:
Risk rating
Performing	$	1,746	$	2,220	$	1,275	$	1,835	$	847	$	669	$	809	$	-	$	9,401
Nonperforming		-		-		4		-		33		1		-		-		38
Total Installments	$	1,746	$	2,220	$	1,279	$	1,835	$	880	$	670	$	809	$	-	$	9,439

Installments Loans:
Current-period Gross writeoffs	$	-	$	22	$	1	$	18	$	8	$	9	$	-	$	-	$	58
	$	-	$	22	$	1	$	18	$	8	$	9	$	-	$	-	$	58

Index

Loan Credit Quality
(in thousands)	As of December 31, 2025
	Term Loans Amortized Cost Basis by Origination Year
	2025		2024		2023		2022		2021		Prior		Revolving Loans Amortized Cost Basis		Revolving Loan Converted to Term		Total
Commercial :
Risk rating
Pass	$	47,620	$	47,818	$	49,673	$	65,902	$	21,050	$	55,543	$	4,694	$	-	$	292,300
Special Mention		-		-		-		237		-		-		-		-		237
Substandard		-		890		-		990		-		690		-		-		2,570
Doubtful		-		-		-		-		-		-		-		-		-
Total Commercial Loans	$	47,620	$	48,708	$	49,673	$	67,129	$	21,050	$	56,233	$	4,694	$	-	$	295,107

Commercial Loans:	$	-	$	-	$	-	$	-	$	4	$	-	$	-	$	-	$	4
Current-period Gross writeoffs	$	-	$	-	$	-	$	-	$	4	$	-	$	-	$	-	$	4

Commercial Other:
Risk rating
Pass	$	4,453	$	1,322	$	6,346	$	1,228	$	136	$	1,218	$	3,538	$	-	$	18,241
Special mention		-		-		-		-		-		-		45		-		45
Substandard		-		10		-		-		1		-		39		-		50
Doubtful		-		-		-		-		-		-		-		-		-
Total Commercial Real Estate Loans	$	4,453	$	1,332	$	6,346	$	1,228	$	137	$	1,218	$	3,622	$	-	$	18,336

Other Commercial Loans:
Current-period Gross writeoffs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Residential First Mortgage:
Risk rating
Performing	$	382,926	$	307,952	$	366,470	$	499,812	$	757,834	$	2,066,631	$	1,653	$	-	$	4,383,278
Nonperforming		-		171		1,213		1,202		1,636		11,724		-		-		15,946
Total First Mortgage:	$	382,926	$	308,123	$	367,683	$	501,014	$	759,470	$	2,078,355	$	1,653	$	-	$	4,399,224

Residential First Mortgage Loans:
Current-period Gross writeoffs	$	-	$	-	$	-	$	-	$	-	$	99	$	-	$	-	$	99
	$	-	$	-	$	-	$	-	$	-	$	99	$	-	$	-	$	99

Home Equity Loans:
Risk rating
Performing	$	17,600	$	5,386	$	7,138	$	4,384	$	5,328	$	23,770	$	-	$	-	$	63,606
Nonperforming		-		-		-		66		-		364		-		-		430
Total Home Equity Loans:	$	17,600	$	5,386	$	7,138	$	4,450	$	5,328	$	24,134	$	-	$	-	$	64,036

Home Equity Lines Loans:
Current-period Gross writeoffs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Home Equity Credit Lines:
Risk rating
Performing	$	1,718	$	3,985	$	1,471	$	1,196	$	1,504	$	19,145	$	432,926	$	-	$	461,945
Nonperforming		-		-		-		-		-		1,879		377		-		2,256
Total Home Equity Credit Lines:	$	1,718	$	3,985	$	1,471	$	1,196	$	1,504	$	21,024	$	433,303	$	-	$	464,201

Home Equity Lines of Credit:
Current-period Gross writeoffs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Installments:
Risk rating
Performing	$	3,089	$	1,973	$	3,191	$	1,542	$	257	$	561	$	892	$	-	$	11,505
Nonperforming		-		-		4		46		-		1		-		-		51
Total Installments	$	3,089	$	1,973	$	3,195	$	1,588	$	257	$	562	$	892	$	-	$	11,556

Installments Loans:
Current-period Gross writeoffs	$	9	$	102	$	17	$	20	$	27	$	42	$	-	$	-	$	217
	$	9	$	102	$	17	$	20	$	27	$	42	$	-	$	-	$	217

Index

The following tables present the aging of the amortized cost in past due loans by loan class and by region as of September 30, 2026 and December 31, 2025:

The following table presents the aging of the recorded investment in past due loans by loan class and by region:

	As of September 30, 2026

New York and other states*:		30-59		60-89		90	+	Total
	Days		Days		Days			30+ days				Total
(dollars in thousands)	Past Due		Past Due		Past Due			Past Due		Current		Loans

Commercial:
Commercial real estate	$	342	$	-	$	2,002		$	2,344	$	258,926	$	261,270
Other		-		88		7			95		18,914		19,009
Real estate mortgage - 1 to 4 family:
First mortgages		2,526		1,816		6,715			11,057		2,895,638		2,906,695
Home equity loans		17		35		256			308		48,866		49,174
Home equity lines of credit		951		309		678			1,938		292,094		294,032
Installment		4		11		11			26		6,830		6,856

Total	$	3,840	$	2,259	$	9,669		$	15,768	$	3,521,268	$	3,537,036

Florida:		30-59		60-89		90	+	Total
	Days		Days		Days			30+ days				Total
(dollars in thousands)	Past Due		Past Due		Past Due			Past Due		Current		Loans

Commercial:
Commercial real estate	$	-	$	-	$	-		$	-	$	51,127	$	51,127
Other		-		-		-			-		1,000		1,000
Real estate mortgage - 1 to 4 family:
First mortgages		3,168		276		1,623			5,067		1,633,955		1,639,022
Home equity loans		24		-		15			39		19,423		19,462
Home equity lines of credit		408		83		397			888		203,168		204,056
Installment		21		73		4			98		2,485		2,583

Total	$	3,621	$	432	$	2,039		$	6,092	$	1,911,158	$	1,917,250

Total:		30-59		60-89		90	+	Total
	Days		Days		Days			30+ days				Total
(dollars in thousands)	Past Due		Past Due		Past Due			Past Due		Current		Loans

Commercial:
Commercial real estate	$	342	$	-	$	2,002		$	2,344	$	310,053	$	312,397
Other		-		88		7			95		19,914		20,009
Real estate mortgage - 1 to 4 family:
First mortgages		5,694		2,092		8,338			16,124		4,529,593		4,545,717
Home equity loans		41		35		271			347		68,289		68,636
Home equity lines of credit		1,359		392		1,075			2,826		495,262		498,088
Installment		25		84		15			124		9,315		9,439

Total	$	7,461	$	2,691	$	11,708		$	21,860	$	5,432,426	$	5,454,286

* Includes New York, New Jersey, Vermont and Massachusetts.

Index

	As of December 31, 2025

New York and other states*:		30-59		60-89		90+	Total
	Days		Days		Days		30+ days				Total
(dollars in thousands)	Past Due		Past Due		Past Due		Past Due		Current		Loans

Commercial:
Commercial real estate	$	-	$	-	$	1,984	$	1,984	$	243,815	$	245,799
Other		-		-		7		7		17,834		17,841
Real estate mortgage - 1 to 4 family:
First mortgages		3,174		1,790		6,830		11,794		2,782,721		2,794,515
Home equity loans		50		-		266		316		46,105		46,421
Home equity lines of credit		370		176		1,158		1,704		263,356		265,060
Installment		5		32		7		44		8,453		8,497

Total	$	3,599	$	1,998	$	10,252	$	15,849	$	3,362,284	$	3,378,133

Florida:		30-59		60-89		90+	Total
	Days		Days		Days		30+ days				Total
(dollars in thousands)	Past Due		Past Due		Past Due		Past Due		Current		Loans

Commercial:
Commercial real estate	$	-	$	-	$	-	$	-	$	49,308	$	49,308
Other		-		-		-		-		495		495
Real estate mortgage - 1 to 4 family:
First mortgages		1,683		978		2,149		4,810		1,599,899		1,604,709
Home equity loans		369		-		-		369		17,246		17,615
Home equity lines of credit		671		116		92		879		198,262		199,141
Installment		46		-		22		68		2,991		3,059

Total	$	2,769	$	1,094	$	2,263	$	6,126	$	1,868,201	$	1,874,327

Total:		30-59		60-89		90+	Total
	Days		Days		Days		30+ days				Total
(dollars in thousands)	Past Due		Past Due		Past Due		Past Due		Current		Loans

Commercial:
Commercial real estate	$	-	$	-	$	1,984	$	1,984	$	293,123	$	295,107
Other		-		-		7		7		18,329		18,336
Real estate mortgage - 1 to 4 family:
First mortgages		4,857		2,768		8,979		16,604		4,382,620		4,399,224
Home equity loans		419		-		266		685		63,351		64,036
Home equity lines of credit		1,041		292		1,250		2,583		461,618		464,201
Installment		51		32		29		112		11,444		11,556

Total	$	6,368	$	3,092	$	12,515	$	21,975	$	5,230,485	$	5,252,460

* Includes New York, New Jersey, Vermont and Massachusetts.

Index

At September 30, 2026 and December 31, 2025, there were no loans that were 90 days past due and still accruing interest. As a result, non-accrual loans include all loans 90 days or more past due, as well as certain loans less than 90 days past due that were placed on non-accrual status for reasons other than delinquent status. There are no commitments to extend further credit on non-accrual or restructured loans.

The Company transfers loans to other real estate owned, at fair value less cost to sell, in the period the Company obtains physical possession of the property (through foreclosure or through a deed in lieu). Other real estate owned is included in other assets on the Consolidated Statements of Financial Condition. As of September 30, 2026 other real estate owned included $1.0 million and $147 thousand of commercial and residential foreclosed properties, respectively. In addition, non-accrual residential mortgage loans that are in the process of foreclosure had an amortized cost of $7.2 million as of September 30, 2026. As of December 31, 2025 other real estate owned included $1.4 million of residential and commercial foreclosed properties. In addition, non-accrual residential mortgage loans that were in the process of foreclosure had an amortized cost of $9.1 million as of December 31, 2025.

Loans individually evaluated for impairment are non-accrual residential loans delinquent greater than 180 days, non-accrual commercial loans, as well as loans classified as loan modifications made to borrowers experiencing financial difficulty. As of September 30, 2026 and December 31, 2025, there was no allowance for credit losses based on the loans individually evaluated for impairment.

Residential and installment non-accrual loans which are not loan modifications made to borrowers experiencing financial difficulty or greater than 180 days delinquent are collectively evaluated to determine the allowance for credit loss.

Index

The following tables present the amortized cost basis in non-accrual loans by portfolio segment:

	As of September 30, 2026
(dollars in thousands)	New York and other states*		Florida		Total
Loans in non-accrual status:
Commercial:
Commercial real estate	$	2,001	$	-	$	2,001
Other		7		-		7
Real estate mortgage - 1 to 4 family:
First mortgages		11,857		4,365		16,222
Home equity loans		419		19		438
Home equity lines of credit		1,777		584		2,361
Installment		19		19		38
Total nonperforming loans	$	16,080	$	4,987	$	21,067

* Includes New York, New Jersey, Vermont and Massachusetts.

	As of December 31, 2025
(dollars in thousands)	New York and other states*		Florida		Total
Loans in non-accrual status:
Commercial:
Commercial real estate	$	1,983	$	-	$	1,983
Other		7		-		7
Real estate mortgage - 1 to 4 family:
First mortgages		12,241		3,705		15,946
Home equity loans		425		5		430
Home equity lines of credit		1,917		338		2,255
Installment		29		22		51
Total nonperforming loans	$	16,602	$	4,070	$	20,672

* Includes New York, New Jersey, Vermont and Massachusetts.

Index

The following tables present the amortized cost basis of loans on non-accrual status and loans past due over 89 days still accruing as of September 30, 2026 and December 31, 2025:

	As of September 30, 2026
(dollars in thousands)	Non-accrual With No Allowance for Credit Loss		Non-accrual With Allowance for Credit Loss		Loans Past Due Over 89 Days Still Accruing
Commercial:
Commercial real estate	$	2,001	$	-		-
Other		7		-		-
Real estate mortgage - 1 to 4 family:
First mortgages		14,789		1,433		-
Home equity loans		400		38		-
Home equity lines of credit		2,192		169		-
Installment		23		15		-
Total	$	19,412	$	1,655		-

	As of December 31, 2025
(dollars in thousands)	Non-accrual With No Allowance for Credit Loss		Non-accrual With Allowance for Credit Loss		Loans Past Due Over 89 Days Still Accruing
Commercial:
Commercial real estate	$	1,983	$	-		-
Other		7		-		-
Real estate mortgage - 1 to 4 family:
First mortgages		14,324		1,622		-
Home equity loans		419		11		-
Home equity lines of credit		2,010		245		-
Installment		22		29		-
Total	$	18,765	$	1,907		-

The non-accrual balance of $1.7 million and $1.9 million was collectively evaluated and the associated allowance for credit losses on loans was determined not to be material as of September 30, 2026 and December 31, 2025, respectively.

A financial asset is considered collateral-dependent when the debtor is experiencing financial difficulty and repayment is expected to be provided substantially through the sale or operation of the collateral. Expected credit losses for the collateral dependent loans are based on the fair value of the collateral at the reporting date, adjusted for selling costs as appropriate.

Index

The following tables present the amortized cost basis of individually analyzed collateral dependent loans by portfolio segment as of September 30, 2026 and December 31, 2025:

	As of September 30, 2026 Type of Collateral
(dollars in thousands)
	Real Estate		Investment Securities/Cash		Other
Commercial:
Commercial real estate	$	2,089	$	-	$	-
Other		-		-		6
Real estate mortgage - 1 to 4 family:		-		-		-
First mortgages		20,574		-		-
Home equity loans		489		-		-
Home equity lines of credit		2,646		-		-
Installment		-		-		38
Total	$	25,798	$	-	$	44

	As of December 31, 2025 Type of Collateral
(dollars in thousands)
	Real Estate		Investment Securities/Cash		Other
Commercial:
Commercial real estate	$	2,076	$	-	$	-
Other		-		-		7
Real estate mortgage - 1 to 4 family:		-		-		-
First mortgages		20,591		-		-
Home equity loans		511		-		-
Home equity lines of credit		2,561		-		-
Installment		-		-		22
Total	$	25,739	$	-	$	29

The Company has not committed to lend additional amounts to customers with outstanding loans that are modified. Interest income recognized on loans that are individually evaluated was not material during the three or nine months ended September 30, 2026 and 2025.

As of September 30, 2026 and 2025 loans individually evaluated included approximately $6.4 million and $6.9 million, respectively, of loans in accruing status that were identified as loan modifications in accordance with regulatory guidance related to Chapter 7 bankruptcy loans.

Pursuant to the adoption of ASU 2022-02 - Financial Instruments - Credit Losses (Topic 326) Troubled Debt Restructuring and Vintage Disclosures (“ASU 2022-02”), a borrower that is experiencing financial difficulty and receives a modification in the form of principal forgiveness, an interest rate reduction, an other-than-insignificant payment delay or a term extension in the current period needs to be disclosed.

Index

The following table presents the amortized cost basis of loans at September 30, 2026 and 2025 that were both experiencing financial difficulty and modified during the three and nine months ended September 30, 2026 and 2025, by class and by type of modification. The percentage of the amortized cost basis of loans that were modified to borrowers in financial distress as compared to the amortized cost basis of each class of financing receivable is also presented below:

For the three months ended:

New York and other states*:	September 30, 2026				September 30, 2025
(dollars in thousands)	Payment Delay		% of Total Class of Loans		Payment Delay		% of Total Class of Loans

Commercial:
Commercial real estate	$	-		-	$	-		-
Other		-		-		-		-
Real estate mortgage - 1 to 4 family:		-		-
First mortgages		-		-		-		-
Home equity loans		-		-		-		-
Home equity lines of credit		-		-		-		-
Installment		-		-		-		-

Total	$				$	-		0.00%

Florida:
	Payment		% of Total Class		Payment		% of Total Class
(dollars in thousands)	Delay		of Loans		Delay		of Loans

Commercial:
Commercial real estate	$	-		-	$	-		-
Other		-		-		-		-
Real estate mortgage - 1 to 4 family:				-
First mortgages		-		-		283		0.02	%
Home equity loans		-		-		-		-
Home equity lines of credit		-		-		-		-
Installment		-		-		-		-

Total	$	-		-	$	283		0.02	%

Total

	Payment		% of Total Class		Payment		% of Total Class
(dollars in thousands)	Delay		of Loans		Delay		of Loans

Commercial:
Commercial real estate	$	-		-	$	-		-
Other		-		-		-		-
Real estate mortgage - 1 to 4 family:
First mortgages		-		-		283		0.01	%
Home equity loans		-		-		-		-
Home equity lines of credit		-		-		-		-
Installment		-		-		-		-

Total	$	-		-	$	283		0.01	%

* Includes New York, New Jersey, Vermont and Massachusetts.

Index

For the nine months ended:

New York and other states*:	September 30, 2026					September 30, 2025
	Payment		% of Total Class			Payment		% of Total Class
(dollars in thousands)	Delay		of Loans			Delay		of Loans

Commercial:
Commercial real estate	$	-		-		$	-		-
Other		-		-			-		-
Real estate mortgage - 1 to 4 family:		-		-
First mortgages		304		0.01	%		392		0.01	%
Home equity loans		-		-			-		-
Home equity lines of credit		-		-			122		0.05	%
Installment		-		-			-		-

Total	$	304		0.01	%	$	514		0.02	%

Florida:
	Payment		% of Total Class			Payment		% of Total Class
(dollars in thousands)	Delay		of Loans			Delay		of Loans

Commercial:
Commercial real estate	$	-		-		$	-		-
Other		-		-			-		-
Real estate mortgage - 1 to 4 family:				-					-
First mortgages		268		0.02	%		283		0.02	%
Home equity loans		-		-			-		-
Home equity lines of credit		-		-			-		-
Installment		-		-			-		-

Total	$	268		0.01	%	$	283		0.02	%

Total
	Payment		% of Total Class			Payment		% of Total Class
(dollars in thousands)	Delay		of Loans			Delay		of Loans

Commercial:
Commercial real estate	$	-		-		$	-		-
Other		-		-			-		-
Real estate mortgage - 1 to 4 family:
First mortgages		572		0.01	%		675		0.03	%
Home equity loans		-		-			-
Home equity lines of credit		-		-			122		0.00	%
Installment		-		-			-		-

Total	$	572		0.01	%	$	797		0.02	%

* Includes New York, New Jersey, Vermont and Massachusetts.

Index

The Bank closely monitors the performance of loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. The following tables present the performance of such loans that have been modified during the last 12 months as of September 30, 2026 and 2025:

			As of September 30, 2026

New York and other states*:				30-59		60-89		90+
			Days		Days		Days
(dollars in thousands)	Current		Past Due		Past Due		Past Due		Total

Commercial:
Commercial real estate	$	-	$	-	$	-	$	-	$	-
Other		-		-		-		-		-
Real estate mortgage - 1 to 4 family:
First mortgages		70		-		-		234		304
Home equity loans		-		-		-				-
Home equity lines of credit		-		-		-		-		-
Installment		-		-		-		-		-

Total	$	70	$	-	$	-	$	234	$	304


Florida:				30-59		60-89		90	+
			Days		Days		Days
(dollars in thousands)	Current		Past Due		Past Due		Past Due			Total

Commercial:
Commercial real estate	$	-	$	-	$	-	$	-		$	-
Other		-		-		-					-
Real estate mortgage - 1 to 4 family:
First mortgages		732		-		-		-			732
Home equity loans		-		-		-		-			-
Home equity lines of credit		-		-		-		-			-
Installment		-		-		-		-			-

Total	$	732	$	-	$	-	$	-		$	732

Total				30-59		60-89		90+
			Days		Days		Days
(dollars in thousands)	Current		Past Due		Past Due		Past Due		Total

Commercial:
Commercial real estate	$	-	$	-	$	-	$	-	$	-
Other		-		-		-		-		-
Real estate mortgage - 1 to 4 family:
First mortgages		802		-		-		234		1,036
Home equity loans		-		-		-		-		-
Home equity lines of credit		-		-		-		-		-
Installment		-		-		-		-		-

Total	$	802	$	-	$	-	$	234	$	1,036

* Includes New York, New Jersey, Vermont and Massachusetts.

Index

			As of September 30, 2025

New York and other states*:				30-59		60-89		90+
			Days		Days		Days
(dollars in thousands)	Current		Past Due		Past Due		Past Due		Total

Commercial:
Commercial real estate	$	-	$	-	$	-	$	-	$	-
Other		-		-		-		-		-
Real estate mortgage - 1 to 4 family:
First mortgages		154		-		238		-		392
Home equity loans		18		-		-				18
Home equity lines of credit		-		122		-		-		122
Installment		-		-		-		-		-

Total	$	172	$	122	$	238	$	-	$	532

Florida:				30-59		60-89		90	+
			Days		Days		Days
(dollars in thousands)	Current		Past Due		Past Due		Past Due			Total

Commercial:
Commercial real estate	$	-	$	-	$	-	$	-		$	-
Other		-		-		-					-
Real estate mortgage - 1 to 4 family:
First mortgages		283		-		-		-			283
Home equity loans		-		-		-		-			-
Home equity lines of credit		47		-		-		-			47
Installment		-		-		-		-			-

Total	$	330	$	-	$	-	$	-		$	330

Total				30-59		60-89		90+
			Days		Days		Days
(dollars in thousands)	Current		Past Due		Past Due		Past Due		Total

Commercial:
Commercial real estate	$	-	$	-	$	-	$	-	$	-
Other		-		-		-		-		-
Real estate mortgage - 1 to 4 family:
First mortgages		437		-		238		-		675
Home equity loans		18		-		-		-		18
Home equity lines of credit		47		122		-		-		169
Installment		-		-		-		-		-

Total	$	502	$	122	$	238	$	-	$	862

* Includes New York, New Jersey, Vermont and Massachusetts.

Index

The following tables describe the financial effect of the modifications made to borrowers experiencing financial difficulty:

For the three months ended:

	September 30, 2026		September 30, 2025
	Weighted		Weighted
New York and other states*:	Average		Average
	Payment		Payment
	Delay (Months)		Delay (Months)

Commercial:
Commercial real estate		-		-
Other		-		-
Real estate mortgage - 1 to 4 family:
First mortgages		-		-
Home equity loans		-		-
Home equity lines of credit		-		-
Installment		-		-

Total		-		-

	Weighted		Weighted
Florida:	Average		Average
	Payment		Payment
	Delay (Months)		Delay (Months)

Commercial:
Commercial real estate		-		-
Other		-		-
Real estate mortgage - 1 to 4 family:
First mortgages		-		9
Home equity loans		-		-
Home equity lines of credit		-		-
Installment		-		-

Total		-		9

	Weighted		Weighted
Total	Average		Average
	Payment		Payment
	Delay (Months)		Delay (Months)

Commercial:
Commercial real estate		-		-
Other		-		-
Real estate mortgage - 1 to 4 family:
First mortgages		-		9
Home equity loans		-		-
Home equity lines of credit		-		-
Installment		-		-

Total		-		9

* Includes New York, New Jersey, Vermont and Massachusetts.

Index

For the nine months ended:

	September 30, 2026		September 30, 2025
	Weighted		Weighted
New York and other states*:	Average		Average
	Payment		Payment
	Delay (Months)		Delay (Months)

Commercial:
Commercial real estate		-		-
Other		-		-
Real estate mortgage - 1 to 4 family:
First mortgages		24		24
Home equity loans		-		-
Home equity lines of credit		-		24
Installment		-		-

Total		24		48

	Weighted		Weighted
Florida:	Average		Average
	Payment		Payment
	Delay (Months)		Delay (Months)

Commercial:
Commercial real estate		-		-
Other		-		-
Real estate mortgage - 1 to 4 family:
First mortgages		7		9
Home equity loans		-		-
Home equity lines of credit		-		-
Installment		-		-

Total		7		9

	Weighted		Weighted
Total	Average		Average
	Payment		Payment
	Delay (Months)		Delay (Months)

Commercial:
Commercial real estate		-		-
Other		-		-
Real estate mortgage - 1 to 4 family:
First mortgages		31		33
Home equity loans		-		-
Home equity lines of credit		-		24
Installment		-		-

Total		31		57

* Includes New York, New Jersey, Vermont and Massachusetts.

Index

The addition of these loan modifications did not have a significant impact on the allowance for credit losses on loans. Generally, the nature of the modifications that resulted in them being classified as a loan modification was the borrower filing for bankruptcy protection. There was one loan modification totaling $234 thousand for residential mortgages that defaulted during the three and nine months ended September 30, 2026 which had been classified as a loan modification within the prior twelve months. There was one loan modification totaling $238 thousand for residential mortgages and one home equity line of credit loan modification totaling $122 thousand that defaulted during the three and nine months ended September 30, 2025 which had been classified as a loan modification within the prior twelve months.

In situations where the Bank considers a loan modification, management determines whether the borrower is experiencing financial difficulty by performing an evaluation of the probability that the borrower will be in payment default on any of its debt in the foreseeable future without the modification. This evaluation is performed under the Company’s underwriting policy.

Generally, the modification of the terms of loans is the result of the borrower filing for bankruptcy protection. Chapter 13 bankruptcies generally include the deferral of all past due amounts for a period of generally 60 months in accordance with the bankruptcy court order. In the case of Chapter 7 bankruptcies even though there is no modification of terms, the borrowers’ debt to the Company is discharged and they do not reaffirm the debt.

A loan is considered to be in payment default once it is 90 days contractually past due under the modified terms. In situations involving a borrower filing for Chapter 13 bankruptcy protection, however, a loan is considered to be in payment default once it is 30 days contractually past due, consistent with the treatment by the bankruptcy court.

(6) Fair Value of Financial Instruments

FASB Topic 820, Fair Value Measurements (“ASC 820”) defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820 also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair values:

Level 1 – Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity can access as of the measurement date.

Level 2 – Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.

Level 3 – Significant unobservable inputs that reflect a company’s own assumptions about the value that market participants would use in pricing an asset or liability.

The Company used the following methods and significant assumptions to estimate the fair value of assets and liabilities:

Index

Securities Available for Sale: The fair value of securities available for sale is determined utilizing an independent pricing service for identical assets or significantly similar securities. The pricing service uses a variety of techniques to arrive at fair value including market maker bids, quotes and pricing models. Inputs to the pricing models include recent trades, benchmark interest rates, spreads and actual and projected cash flows. This results in a Level 2 classification of the inputs for determining fair value. Interest and dividend income is recorded on the accrual method and is included in the Consolidated Statements of Income in the respective investment class under total interest and dividend income. The Company does not have any securities that would be designated as Level 3.

Other Real Estate Owned: Assets acquired through loan foreclosure are initially recorded at fair value less costs to sell when acquired, establishing a new cost basis. These assets are subsequently accounted for at lower of cost or fair value less estimated costs to sell. Fair value is commonly based on recent real estate appraisals. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process to adjust for differences between the comparable sales and income data available. This results in a Level 3 classification of the inputs for determining fair value.

Individually Evaluated Loans: Periodically the Company records non-recurring adjustments to the carrying value of loans based on fair value measurements for partial charge-offs of the uncollectible portions of those loans. Non-recurring adjustments can also include certain adjustments for collateral-dependent loans to adjust balances to fair value and generally have had a charge-off through the allowance for credit losses. For collateral dependent loans, fair value is commonly based on recent real estate appraisals. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process to adjust for differences between the comparable sales and income data available. Such adjustments may be significant and typically result in a Level 3 classification of the inputs for determining fair value. When obtained, non-real estate collateral may be valued using an appraisal, net book value per the borrower’s financial statements, or aging reports, adjusted or discounted based on management’s historical knowledge, changes in market conditions from the time of the valuation, and management’s expertise and knowledge of the client and client’s business, resulting in a Level 3 fair value classification. Loans individually evaluated are evaluated on a quarterly basis for additional impairment and adjusted accordingly.

Indications of value for both collateral-dependent loans and other real estate owned are obtained from third party providers or the Company’s internal Appraisal Department. All indications of value are reviewed for reasonableness by a member of the Appraisal Department for the assumptions and approaches utilized in the appraisal as well as the overall resulting fair value via comparison with independent data sources such as recent market data or industry-wide statistics.

There were no transfers between Level 1 and Level 2 during the three and nine months ended September 30, 2026 and 2025.

Index

Assets and liabilities measured at fair value under ASC 820 on a recurring basis are summarized below:

	Fair Value Measurements at
	September 30, 2026 Using:
					Significant
			Quoted Prices in		Other		Significant
			Active Markets for		Observable		Unobservable
	Carrying		Identical Assets		Inputs		Inputs
(dollars in thousands)	Value		(Level 1)		(Level 2)		(Level 3)

U.S. government sponsored enterprises	$	9,873	$	-	$	9,873	$	-
State and political subdivisions		9		-		9		-
Mortgage backed securities and collateralized mortgage obligations - residential		196,688		-		196,688		-
Corporate bonds		77,434		-		77,434		-
Small Business Administration- guaranteed participation securities		9,306		-		9,306		-
Other securities		713		-		713		-

Total securities available for sale	$	294,023	$	-	$	294,023	$	-

	Fair Value Measurements at
	December 31, 2025 Using:
					Significant
			Quoted Prices in		Other		Significant
			Active Markets for		Observable		Unobservable
	Carrying		Identical Assets		Inputs		Inputs
(dollars in thousands)	Value		(Level 1)		(Level 2)		(Level 3)

Securities available for sale:
U.S. government sponsored enterprises	$	31,772	$	-	$	31,772	$	-
State and political subdivisions		9		-		9		-
Mortgage backed securities and collateralized mortgage obligations - residential		206,290		-		206,290		-
Corporate bonds		59,932		-		59,932		-
Small Business Administration- guaranteed participation securities		11,710		-		11,710		-
Other securities		705		-		705		-

Total securities available for sale	$	310,418	$	-	$	310,418	$	-

Index

Assets measured at fair value on a non-recurring basis are summarized below:

Fair Value Measurements at

September 30, 2026 Using:

Significant

Quoted Prices in

Other

Significant

Active Markets for

Observable

Unobservable

Carrying

Identical Assets

Inputs

(dollars in thousands)

Value

(Level 1)

(Level 2)

(Level 3)

Valuation technique

Unobservable inputs

Range (Weighted Average)

Other real estate owned

1,183

Sales comparison

Adjustments for

0% - 12% (6

approach

differences between

comparable sales

Individually evaluated loans:

Commercial

156

Sales comparison

Adjustments for

0% - 52% (26

approach

differences between

comparable sales

Fair Value Measurements at

December 31, 2025 Using:

Significant

Quoted Prices in

Other

Significant

Active Markets for

Observable

Unobservable

Carrying

Identical Assets

Inputs

(dollars in thousands)

Value

(Level 1)

(Level 2)

(Level 3)

Valuation technique

Unobservable inputs

Range (Weighted Average)

Other real estate owned

1,394

Sales comparison

Adjustments for

0% - 58% (29

approach

differences between

comparable sales

Individually evaluated loans:

Real estate mortgage - 1 to 4 family

Sales comparison

Adjustments for

0% - 52% (26

approach

differences between

comparable sales

Other real estate owned that is carried at fair value less costs to sell was approximately $1.2 million at September 30, 2026 and consisted of residential and commercial real estate properties. Valuation charges of $30 thousand and $60 thousand were included in earnings for the three and nine months ended September 30, 2026, respectively.

Of the total individually evaluated loans of $25.8 million at September 30, 2026, there were commercial loans that were collateral dependent and are carried at fair value measured on a non-recurring basis. Due to the sufficiency of charge-offs taken on these loans and the adequacy of the underlying collateral, there were no individually analyzed reserves for these loans at September 30, 2026. The carrying balances of these loans were $175 thousand and there were $19 thousand in charge-offs related to commercial loans included in the table above as of September 30, 2026.

Other real estate owned, which is carried at fair value less costs to sell, was approximately $1.4 million at December 31, 2025, and consisted of residential and commercial real estate properties. A valuation charge of $547 thousand is included in earnings for the year ended December 31, 2025.

Of the total individually evaluated loans of $25.8 million at December 31, 2025, there were real estate mortgage loans that were collateral dependent and are carried at fair value measured on a non-recurring basis. Due to the sufficiency of charge-offs taken on these loans and the adequacy of the underlying collateral, there were no individually analyzed reserves for these loans at December 31, 2025. The carrying balances of these loans were $185 thousand and there were $99 thousand in charge-offs related to real estate mortgage loans included in the table above as of December 31, 2025.

Index

In accordance with FASB Topic 825, Financial Instruments (“ASC 825”), the carrying amounts and estimated fair values of financial instruments, at September 30, 2026 and December 31, 2025 are as follows:

(dollars in thousands)			Fair Value Measurements at
	Carrying		September 30, 2026 Using:
	Value		Level 1		Level 2		Level 3		Total
Financial assets:
Cash and cash equivalents	$	597,316	$	597,316	$	-	$	-	$	597,316
Securities available for sale		294,023				294,023		-		294,023
Held to maturity securities		3,640		-		3,562		-		3,562
Federal Home Loan Bank stock		6,756		N/A		N/A		N/A		N/A
Net loans		5,399,124		-		-		4,996,872		4,996,872
Accrued interest receivable		15,533		732		1,220		13,581		15,533
Financial liabilities:
Demand deposits		817,555		817,555		-		-		817,555
Interest bearing deposits		4,866,663		2,567,337		2,284,859		-		4,852,196
Short-term borrowings		98,108		-		98,108		-		98,108
Accrued interest payable		3,498		123		3,375		-		3,498

(dollars in thousands)			Fair Value Measurements at
	Carrying		December 31, 2025 Using:
	Value		Level 1		Level 2		Level 3		Total
Financial assets:
Cash and cash equivalents	$	730,427	$	730,427	$	-	$	-	$	730,427
Securities available for sale		310,418		-		310,418		-		310,418
Held to maturity securities		4,339		-		4,389		-		4,389
Federal Home Loan Bank stock		6,601		N/A		N/A		N/A		N/A
Net loans		5,200,255		-		-		4,803,366		4,803,366
Accrued interest receivable		13,828		325		1,266		12,237		13,828
Financial liabilities:
Demand deposits		814,908		814,908		-		-		814,908
Interest bearing deposits		4,742,509		2,604,094		2,132,833		-		4,736,927
Short-term borrowings		120,054		-		120,054		-		120,054
Accrued interest payable		3,646		159		3,487		-		3,646

Index

(7) Accumulated Other Comprehensive Income (Loss)

The following is a summary of the accumulated other comprehensive income (loss) balances, net of tax for the three and nine months ended September 30, 2026 and 2025:

	Three months ended September 30, 2026
							Amount
				Other			reclassified			Other
				Comprehensive			from Accumulated			Comprehensive loss-
	Balance at			loss-Before			Other Comprehensive			Three months ended			Balance at
(dollars in thousands)	7/1/2026			Reclassifications			Income			9/30/2026			9/30/2026

Net unrealized holding loss on securities available for sale, net of tax	$	(14,055	)	$	(6,362	)	$	-		$	(6,362	)	$	(20,417	)
Net change in overfunded position in pension and postretirement plans arising during the year, net of tax		26,962			-			-			-			26,962
Net change in net actuarial gain and prior service cost on pension and postretirement benefit plans, net of tax		(5,940	)		-			(529	)		(529	)		(6,469	)

Accumulated other comprehensive income (loss), net of tax	$	6,967		$	(6,362	)	$	(529	)	$	(6,891	)	$	76

	Three months ended September 30, 2025
						Amount
				Other		reclassified			Other Comprehensive
				Comprehensive		from Accumulated			income-
	Balance at			income-Before		Other Comprehensive			Three months ended			Balance at
(dollars in thousands)	7/1/2025			Reclassifications		Income			9/30/2025			9/30/2025

Net unrealized holding loss on securities available for sale, net of tax	$	(15,429	)	$	1,673	$	-		$	1,673		$	(13,756	)
Net change in overfunded position in pension and postretirement plans arising during the year, net of tax		21,266			-		-			-			21,266
Net change in net actuarial gain and prior service cost on pension and postretirement benefit plans, net of tax		(4,174	)		-		(381	)		(381	)		(4,555	)

Accumulated other comprehensive (loss) income, net of tax	$	1,663		$	1,673	$	(381	)	$	1,292		$	2,955

	Nine months ended September 30, 2026
							Amount
				Other			reclassified			Other Comprehensive
				Comprehensive			from Accumulated			loss-
	Balance at			loss-Before			Other Comprehensive			Nine months ended			Balance at
(dollars in thousands)	1/1/2026			Reclassifications			Income			9/30/2026			9/30/2026


Net unrealized holding loss on securities available for sale, net of tax	$	(12,055	)	$	(8,362	)		-		$	(8,362	)	$	(20,417	)
Net change in overfunded position in pension and postretirement plans arising during the year, net of tax		26,962			-			-			-			26,962
Net change in net actuarial gain and prior service cost on pension and postretirement benefit plans, net of tax		(4,883	)		-			(1,586	)		(1,586	)		(6,469	)

Accumulated other comprehensive income (loss), net of tax	$	10,024		$	(8,362	)	$	(1,586	)	$	(9,948	)	$	76

	Nine months ended September 30, 2025
						Amount
				Other		reclassified			Other Comprehensive
				Comprehensive		from Accumulated			income-
	Balance at			income-Before		Other Comprehensive			Nine months ended			Balance at
(dollars in thousands)	1/1/2025			Reclassifications		Income			9/30/2025			9/30/2025


Net unrealized holding loss on securities available for sale, net of tax	$	(21,713	)	$	7,957	$	-		$	7,957		$	(13,756	)
Net change in overfunded position in pension and postretirement plans arising during the year, net of tax		21,266			-		-			-			21,266
Net change in net actuarial gain and prior service credit on pension and postretirement benefit plans, net of tax		(3,414	)		-		(1,141	)		(1,141	)		(4,555	)

Accumulated other comprehensive (loss) income, net of tax	$	(3,861	)	$	7,957	$	(1,141	)	$	6,816		$	2,955

The following represents the reclassifications out of accumulated other comprehensive income (loss) for the three and nine months ended September 30, 2026 and 2025:

Index

(dollars in thousands)	Three months ended						Nine months ended
	September 30,						September 30,
	2026			2025			2026			2025
Amortization of pension and postretirement benefit items:
Amortization of net actuarial gain	$	718		$	517		$	2,152		$	1,551
Amortization of prior service cost		(4	)		(2	)		(10	)		(9	)
Income tax benefit		(185	)		(134	)		(556	)		(401	)
Net of tax		529			381			1,586			1,141

Total reclassifications, net of tax	$	529		$	381		$	1,586		$	1,141

(8) Revenue from Contracts with Customers

All of the Company’s revenue from contracts with customers in the scope of ASC 606 is recognized within non-interest income. The following table presents the Company’s sources of non-interest income for the three months and nine months ended September 30, 2026 and 2025. Items outside the scope of ASC 606 are noted as such.

(dollars in thousands)	Three months ended				Nine months ended
	September 30,				September 30,
	2026		2025		2026		2025
Non-interest income
Service Charges on Deposits
Overdraft fees	$	748	$	718	$	2,119	$	2,065
Other		667		665		1,982		1,776
Interchange Income		1,028		1,013		3,189		3,594
Net gains on equity securities ^(a)		56		-		900		-
Wealth management fees		2,059		1,967		6,174		5,905
Other^(a)		260		326		1,207		1,175

Total non-interest income	$	4,818	$	4,689	$	15,571	$	14,515

^(a) Not within the scope of ASC 606.

A description of how the Company’s revenue streams are accounted for in accordance with ASC 606 is set forth below:

Service charges on Deposit Accounts: The Company earns fees from its deposit customers for transaction‑based, account maintenance and overdraft services. Transaction‑based fees, which include services such as stop payment charges, and wire fees, are recognized at the time the transaction is executed, as that is the point in time the Company fulfills the customer’s request. Account maintenance fees, which relate primarily to monthly maintenance, are earned over the course of a month, representing the period over which the Company satisfies the performance obligation. Overdraft fees are recognized at the point in time that the overdraft occurs. Service charges on deposits are withdrawn from the customer’s account balance.

Interchange Income: Interchange revenue primarily consists of interchange fees, volume‑related incentives and ATM charges. As the card‑issuing bank, interchange fees represent our portion of discount fees paid by merchants for credit/debit card transactions processed through the interchange network. The levels and structure of interchange rates are set by the card processing companies and are based on cardholder purchase volumes. The Company earns interchange income as cardholder transactions occur and interchange fees are settled on a daily basis concurrent with the transaction processing services provided to the cardholder.

Index

Wealth Management fees: Trustco Wealth Management provides a comprehensive suite of trust and wealth management products and services, including financial and estate planning, trustee and custodial services, investment management, corporate retirement plan recordkeeping and administration of which a fee is charged to manage assets for investment or transact on accounts. These fees are earned over time as the Company provides the contracted monthly or quarterly services and are generally assessed over the period in which services are performed based on a percentage of the fair value of assets under management or administration. Other services are based on a fixed fee for certain account types, or based on transaction activity and are recognized when services are rendered. Fees are withdrawn from the customer’s account balance.

Gains/Losses on Sales of Other Real Estate Owned “OREO”: The Company records a gain or loss from the sale of OREO when control of the property transfers to the buyer, which generally occurs at the time of an executed deed. When the Company finances the sale of OREO to the buyer, the Company assesses whether the buyer is committed to perform their obligations under the contract and whether collectability of the transaction price is probable. Once these criteria are met, the OREO asset is derecognized and the gain or loss on sale is recorded upon the transfer of control of the property to the buyer. In determining the gain or loss on the sale, the Company adjusts the transaction price and related gain/(loss) on sale if a significant financing component is present.

(9) Operating Leases

The Company has committed to rent premises used in business operations under non-cancelable operating leases and determines if an arrangement meets the definition of a lease upon inception. Operating leases are included in operating lease right-of-use (“ROU”) assets and operating lease liabilities on the Company’s balance sheets.

Operating lease ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease ROU assets and lease liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. The Company’s leases do not provide an implicit rate, therefore the Company used its incremental collateralized borrowing rates commensurate with the underlying lease terms to determine present value of operating lease liabilities. Additionally, the Company does allocate the consideration between lease and non-lease components. The Company’s lease terms may include options to extend when it is reasonably certain that the Company will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term. Variable lease components, such as fair market value adjustments, are expensed as incurred and not included in ROU assets and operating lease liabilities. Leases with an initial term of 12 months or less are not recorded on the balance sheet; we recognize lease expense for these leases on a straight-line basis over the lease term. As of September 30, 2026, the Company did not have any leases with terms of twelve months or less.

As of September 30, 2026 the Company did not have any leases for which the construction had not yet started. At September 30, 2026 lease expiration dates ranged from one month to 18 years and have a weighted average remaining lease term of 8.0 years. Certain leases provide for increases in future minimum annual rental payments as defined in the lease agreements. As mentioned above the leases generally also include variable lease components which include real estate taxes, insurance, and common area maintenance (“CAM”) charges in the annual rental payments.

Index

Other information related to leases was as follows:

(dollars in thousands)	Three months ended
	September 30,
	2026		2025
Operating lease cost	$	1,959	$	2,012
Variable lease cost		526		559

Total Lease costs	$	2,485	$	2,571

(dollars in thousands)	Nine months ended
	September 30,
	2026		2025
Operating lease cost	$	5,792	$	6,063
Variable lease cost		1,708		1,710

Total Lease costs	$	7,500	$	7,773

(dollars in thousands)	Nine months ended
	September 30,
	2026			2025
Supplemental cash flows information:
Cash paid for amounts included in the measurement of
lease liabilities:
Operating cash flows from operating leases	$	5,337		$	6,527

Right-of-use assets obtained in exchange for lease obligations:		4,021			3,656

Weighted average remaining lease term	8.0 years			8.3 years
Weighted average discount rate		3.45	%		3.34	%

Index

Future minimum lease payments under non-cancellable leases as of September 30, 2026 were as follows:

(dollars in thousands)

Year ending
December 31,
2026^(a)	$	2,045
2027		7,515
2028		6,348
2029		4,975
2030		3,903
Thereafter		15,434
Total lease payments	$	40,220
Less: Interest		5,145

Present value of lease liabilities	$	35,075

^(a) Excluding the nine months ended September 30, 2026.

A member of the Board of Directors has an ownership interest in five entities that own commercial real estate leased by the Company for use as branch locations. Total future lease payments from the Company to those entities, which are included in the table above, owed at September 30, 2026, were $1.6 million, which includes interest in the amount of $132 thousand.

(10) Regulatory Capital Requirements

Banks and bank holding companies are subject to regulatory capital requirements administered by federal banking agencies. Capital adequacy regulations and, additionally for banks, the prompt corrective action regulations, involve quantitative measures of assets, liabilities, and certain off-balance-sheet items calculated under regulatory accounting practices. Capital amounts and classifications are also subject to qualitative judgments by regulators. Failure to meet capital requirements can result in regulatory action. As of September 30, 2026, the Company and Bank meet all capital adequacy requirements to which they are subject.

Prompt corrective action regulations provide five classifications: well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized, and critically undercapitalized, although these terms are not used to represent overall financial condition. If a bank is not classified as well capitalized, regulatory approval is required to accept brokered deposits. If a bank is undercapitalized, capital distributions are limited, as is asset growth and expansion, and capital restoration plans are required. The federal banking agencies are required to take certain supervisory actions (and may take additional discretionary actions) with respect to an undercapitalized institution or its holding company. Such actions could have a direct material effect on an institution’s or its holding company’s financial statements. As of both September 30, 2026 and December 31, 2025, the most recent regulatory notifications categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. There are no conditions or events since that notification that management believes have changed the Bank’s category.

Index

The Bank and the Company reported the following capital ratios as of September 30, 2026 and December 31, 2025:

(Bank Only)									Minimum for
									Capital Adequacy plus
	As of September 30, 2026					Well			Capital Conservation
(dollars in thousands)	Amount		Ratio			Capitalized⁽¹⁾			Buffer⁽¹⁾⁽²⁾

Tier 1 leverage ratio	$	566,137		8.648	%		5.000	%		4.000	%
Common equity tier 1 capital		566,137		14.763			6.500			7.000
Tier 1 risk-based capital		566,137		14.763			8.000			8.500
Total risk-based capital		614,182		16.016			10.000			10.500

									Minimum for
									Capital Adequacy plus
	As of December 31, 2025					Well			Capital Conservation
(dollars in thousands)	Amount		Ratio			Capitalized⁽¹⁾			Buffer⁽¹⁾⁽²⁾

Tier 1 leverage ratio	$	513,719		8.058	%		5.000	%		4.000	%
Common equity tier 1 capital		513,719		13.981			6.500			7.000
Tier 1 risk-based capital		513,719		13.981			8.000			8.500
Total risk-based capital		559,750		15.234			10.000			10.500

(Consolidated)

						Minimum for
						Capital Adequacy plus
	As of September 30, 2026					Capital Conservation
(dollars in thousands)	Amount		Ratio			Buffer⁽¹⁾⁽²⁾

Tier 1 leverage ratio	$	630,695		9.633	%		4.000	%
Common equity tier 1 capital		630,695		16.442			7.000
Tier 1 risk-based capital		630,695		16.442			8.500
Total risk-based capital		678,752		17.695			10.500

						Minimum for
						Capital Adequacy plus
	As of December 31, 2025					Capital Conservation
(dollars in thousands)	Amount		Ratio			Buffer⁽¹⁾⁽²⁾

Tier 1 leverage ratio	$	676,012		10.601	%		4.000	%
Common equity Tier 1 capital		676,012		18.393			7.000
Tier 1 risk-based capital		676,012		18.393			8.500
Total risk-based capital		722,055		19.646			10.500

(1) Federal regulatory minimum requirements to be considered to be Well Capitalized and Adequately Capitalized

(2) The September 30, 2026 and December 31, 2025 common equity tier 1, tier 1 risk-based, and total risk-based capital ratios include a capital conservation buffer of 2.50 percent

Index

(11) Segment Reporting

The Company’s reportable segment is determined by the Chief Executive Officer, who is designated the chief operating decision maker (CODM), based upon information provided about the Company’s products and services offered, primarily banking operations. Consolidated net income of the Company is the primary performance metric utilized by the CODM. The chief operating decision maker will evaluate the financial performance of the Company’s business components such as by evaluating revenue streams, significant expenses, and budget to actual results in assessing the Company’s segment and in the determination of allocating resources. All expenses associated with the Company’s banking operations are considered to be significant. Given the Company’s single reportable operating segment, assets associated with the Company’s banking operations are reflected on the Company’s consolidated statements of condition as “total assets” and the amounts of significant segment expenses are disclosed in the Company’s consolidated statements of income. The accounting policies for the Company’s banking operations are the same as the Company’s accounting policies disclosed herein.

While the Company has assigned certain management responsibilities by region and business line, the Company’s chief decision-maker monitors and evaluates financial performance on a Company-wide basis. The majority of the Company’s revenue is from the business of banking and the Company’s assigned regions have similar economic characteristics, products, services and customers. Accordingly, all of the Company’s operations are considered by management to be aggregated in one reportable operating segment. All operations are domestic.

(12) New Accounting Pronouncements

In November 2024, the FASB issued ASU No. 2024-03 “Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses” (ASU 2024-03). ASU 2024-03 requires additional interim and annual disclosures that further disaggregate certain expense captions into specified categories in a separate note to the financial statements, as well as certain qualitative information describing amounts not separately disaggregated. ASU 2024-03 is effective for the Company in the annual period beginning on January 1, 2027 and interim periods beginning on January 1, 2028 and can be applied on either a prospective or retrospective basis, with early adoption permitted. The Company is evaluating the impact of ASU 2024-03 on its disclosures.

In December 2025, the FASB issued ASU 2025-11, “Interim Reporting (Topic 270): Narrow Scope Improvements”, to improve the guidance in Topic 270, by clarifying interim disclosure requirements and the applicability of Topic 270. The amendments in this update result in a comprehensive list of interim disclosures that are required by GAAP. In developing the list of disclosures required by other Topics, the FASB board focused on identifying the interim disclosures that are currently required under GAAP. The amendments in this update also include a disclosure principle that requires entities to disclose events since the end of the last annual reporting period that have a material impact on the entity. The amendments in this update also clarify the applicability of Topic 270, the types of interim reporting, and the form and content of interim financial statements in accordance with GAAP. The FASB board expects these clarifications will enhance consistency in interim financial reporting in interim for all entities and considers the amendments to be necessary to reflect the development of interim reporting over time. The amendments in this update are effective for interim reporting periods within annual reporting periods beginning after December 15, 2027, for public business entities and for interim reporting periods within annual reporting periods beginning after December 15, 2028, for entities other than public business entities. Early adoption is permitted for all entities, and can be applied either (1) prospectively or (2) retrospectively to any or all prior periods presented in the financial statements. The Company is currently evaluating the impact of this update on its financial disclosures, but does not expect the adoption of this update to have a material impact on the consolidated financial statements.

Index

Crowe LLP

Independent Member Crowe Global

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

Shareholders and the Board of Directors of TrustCo Bank Corp NY

Glenville, New York

Results of Review of Interim Financial Information

We have reviewed the consolidated statement of financial condition of TrustCo Bank Corp NY (the “Company”) as of September 30, 2026, and the related consolidated statements of income and comprehensive income for the three and nine-month periods ended September 30, 2026 and September 30, 2025 and the related changes in shareholders’ equity and cash flows for the nine-month periods ended September 30, 2026 and September 30, 2025, and the related notes (collectively referred to as the “interim financial information or statements”). Based on our reviews, we are not aware of any material modifications that should be made to the consolidated financial statements referred to above for them to be in conformity with accounting principles generally accepted in the United States of America.

We have previously audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (“PCAOB”), the consolidated statement of financial condition of the Company as of December 31, 2025, and the related consolidated statements of income, comprehensive income, changes in shareholders’ equity, and cash flows for the year then ended (not presented herein); and in our report dated March 16, 2026, we expressed an unqualified opinion on those consolidated financial statements. In our opinion, the information set forth in the accompanying consolidated statement of financial condition as of December 31, 2025, is fairly stated, in all material respects, in relation to the consolidated statement of condition from which it has been derived.

Basis for Review Results

These financial statements are the responsibility of the Company’s management. We conducted our review in accordance with the standards of the PCAOB. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

A review of interim financial information consists principally of applying analytical procedures and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with the standards of the PCAOB, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion.

	/s/ Crowe LLP

Boston, Massachusetts November 6, 2026

Index

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

Introduction

The review that follows focuses on the factors affecting the financial condition and results of operations of TrustCo during the three month and nine month periods ended September 30, 2026, with comparisons to the corresponding period in 2025, as applicable. The consolidated interim financial statements and related notes, as well as the Annual Report on Form 10-K for the year ended December 31, 2025, which was filed with the SEC on March 16, 2026 (the “2025 Form 10-K”), should also be read in conjunction with this review. Amounts in prior period consolidated interim financial statements are reclassified whenever necessary to conform to the current period’s presentation. These reclassifications have no effect on prior period net income or shareholders’ equity. See the “Cautionary Note Regarding Forward-Looking Statements” on page 5 of this report for a description of important factors that could cause actual results to differ from expected results.

Following this Management’s Discussion and Analysis is the table “Distribution of Assets, Liabilities and Shareholders’ Equity: Interest Rates and Interest Differential”, which gives a detailed breakdown of TrustCo’s average interest earning assets and interest-bearing liabilities for the three and nine month periods ended September 30, 2026 and 2025.

Economic Overview

During the third quarter of 2026, financial markets were volatile, and two of the three major indexes advanced. The S&P 500 Index was up 2.03%, Nasdaq was up 2.47%, and the Dow Jones Industrial Average was down 2.70% compared to the end of the second quarter of 2026. The 10‑year Treasury bond averaged 4.76% during Q3 2026 compared to 4.42% in Q2 2026, an increase of 34 basis points. The 2‑year Treasury bond average rate increased 39 basis points to 4.36% during Q3 2026, which flattened the yield curve as compared to the prior quarter. The spread between the 10‑year and the 2-year Treasury bonds decreased from 0.46% on average in Q2 2026 to 0.39% in Q3 2026. Generally, steeper yield curves are favorable for portfolio mortgage lenders like TrustCo, and the table below illustrates the range of rate movements for both short term and longer-term rates. The Federal Funds rate remained flat for most of 2026 at a range of 3.50% to 3.75% until the Federal Open Market Committee (“FOMC”) raised the target range to 3.75% to 4.00% in September 2026.

Index

		3 Month	2 Year	5 Year	10 Year	10 - 2 Year
		Yield (%)	Yield (%)	Yield (%)	Yield (%)	Spread (%)

Q3/25	Beg of Q3	4.41	3.72	3.79	4.24	0.52
	Peak	4.42	3.95	4.05	4.50	0.65
	Trough	4.00	3.49	3.57	4.01	0.43
	End of Q3	4.02	3.60	3.74	4.16	0.56
	Average in Q3	4.26	3.72	3.80	4.26	0.54

Q4/25	Beg of Q4	4.02	3.60	3.74	4.16	0.56
	Peak	4.03	3.63	3.78	4.19	0.73
	Trough	3.62	3.41	3.55	3.97	0.49
	End of Q4	3.67	3.47	3.73	4.18	0.71
	Average in Q4	3.86	3.52	3.67	4.10	0.58

Q1/26	Beg of Q1	3.67	3.47	3.73	4.18	0.71
	Peak	3.74	3.96	4.08	4.44	0.74
	Trough	3.62	3.38	3.51	3.97	0.46
	End of Q1	3.70	3.79	3.92	4.30	0.51
	Average in Q1	3.69	3.58	3.77	4.20	0.62

Q2/26	Beg of Q2	3.70	3.79	3.92	4.30	0.51
	Peak	3.87	4.24	4.32	4.67	0.57
	Trough	3.65	3.71	3.84	4.26	0.27
	End of Q2	3.87	4.14	4.19	4.44	0.30
	Average in Q2	3.73	3.97	4.09	4.42	0.46

Q3/26	Beg of Q3	3.87	4.14	4.19	4.44	0.30
	Peak	4.28	4.92	5.09	5.29	0.53
	Trough	3.82	4.13	4.21	4.48	0.20
	End of Q3	4.20	4.88	5.09	5.29	0.41
	Average in Q3	3.94	4.36	4.50	4.76	0.39

The country has been experiencing economic uncertainty as markets continue to adjust to changes in tariff policies, Middle East tensions, increased oil prices and a volatile labor market. The FOMC lowered the Federal Funds target rate range to 3.50-3.75% in December 2025 and there was no change in the first half of 2026. At its meeting in July 2026, the FOMC majority voted to leave rates unchanged although three members voted to increase the Federal Funds target rate. In September 2026, the FOMC increased the target range for the federal funds rate by 25-basis points to 3.75% - 4.00% and revised its economic outlook to reflect expectations for possible further interest rate increases during 2026. As a result, market expectations have shifted toward a continuing elevated interest rate environment, which may continue to adversely affect housing affordability and refinancing demand.

The Company expects to see continued volatility in the economic markets resulting from governmental responses to inflation, as well as uncertainty about the impacts of the conflict in Iran and tariffs. These changing conditions could have impacts on the balance sheet and income statement of the Company for the remainder of the year.

Index

Management believes that TrustCo’s long-term focus on traditional banking services and practices historically has enabled the Company to avoid significant impact from asset quality problems, and that the Company’s strong liquidity and solid capital positions have allowed the Company to continue to conduct business in a manner consistent with its past practice. While we continue to adhere to prudent underwriting standards, should general housing prices and other economic measures, such as unemployment in the Company’s market areas, deteriorate as a result of changes in interest rates, general economic instability, a potential or actual default on the federal debt or other reasons, the Company may experience an increase in the level of credit risk and in the amount of its classified and nonperforming loans.

Financial Overview

TrustCo recorded net income of $17.3 million, or $1.02 of diluted earnings per share, for the three months ended September 30, 2026, compared to net income of $16.3 million, or $0.86 of diluted earnings per share, in the same period in 2025. Return on average assets was 1.05% and 1.02%, respectively, for the three months ended September 30, 2026 and 2025. Return on average equity was 10.57% and 9.29%, respectively, for the three months ended September 30, 2026 and 2025.

The primary factors accounting for the change in net income for the three months ended September 30, 2026 compared to the same period of the prior year were:

•

An increase of $3.9 million, or 9.1%, in net interest income compared to the third quarter of 2025, primarily as a result of an increase in interest and fees on loans and a decrease in interest expense, partially offset by a decrease in interest income on federal funds sold and other short-term investments.

•

An increase of $600 thousand in provision for credit losses compared to the third quarter of 2025.

•

An increase of $1.8 million in noninterest expense compared to the third quarter of 2025 primarily as a result of increases in equipment expense, professional services, outsourced services, advertising expense and other expenses.

TrustCo recorded net income of $50.6 million, or $2.91 of diluted earnings per share, for the nine months ended September 30, 2026, compared to net income of $45.6 million, or $2.41 of diluted earnings per share, in the same period in 2025. Return on average assets was 1.04% and 0.97%, respectively, for the nine months ended September 30, 2026 and 2025. Return on average equity was 10.15% and 8.84%, respectively, for the nine months ended September 30, 2026 and 2025.

Index

The primary factors accounting for the change in net income for the nine months ended September 30, 2026 compared to the same period of the prior year were:

•

An increase of $12.1 million, or 9.7%, in net interest income compared to the first nine months of 2025, primarily as a result of an increase in interest and fees on loans and a decrease in interest expense, partially offset by a decrease in interest income on federal funds sold and other short-term investments.

•

An increase of $1.3 million in the provision for credit losses compared to the first nine months of 2025.

•

An increase of $1.1 million in noninterest income compared to the first nine months of 2025. The increase was primarily driven by a gain of $900 thousand from the conversion and sale of the Visa Class C common stock as described below.

•

An increase of $4.5 million in noninterest expense compared to the first nine months of 2025 primarily as a result of increases in salaries and employee benefits, equipment expense, outsourced services, advertising expense, and other expense.

Visa Exchange Offer

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 sold all of its Visa Class C shares all in the third quarter of 2026 and recorded an additional gain of $56 thousand, thus resulting in no remaining carrying value on the Company’s Statement of Financial Condition as of September 30, 2026. The Company originally obtained the Visa Class B shares in 2008. The strategic decision to retain the Class C shares and not sell them sooner, allowed the Company to avoid commissions and other expenses thus recognizing the full market value.

Asset/Liability Management

The Company strives to generate its earnings capabilities through a mix of core deposits funding a prudent mix of earning assets. Additionally, TrustCo attempts to maintain adequate liquidity and reduce the sensitivity of net interest income to changes in interest rates to an acceptable level while enhancing profitability both on a short‑term and long‑term basis.

TrustCo’s results are affected by a variety of factors including competitive and economic conditions in the specific markets in which the Company operates and, more generally, in the national economy, financial market conditions and the regulatory environment. Each of these factors is dynamic, and changes in any area can have an impact on TrustCo’s results. Included in the 2025 Form 10-K is a description of the effect that changes in interest rates had on lending, core funding and the results for the year 2025 compared to 2024. Many of the same market factors discussed in the 2025 Form 10-K continued to have an impact on results through the third quarter of 2026.

TrustCo competes with other financial service providers based upon many factors including quality of service, convenience of operations and rates paid on deposits and charged on loans. In the experience of management, the absolute level of interest rates, changes in interest rates and customers’ expectations with respect to the direction of interest rates have a significant impact on the volume of loan and deposit originations in any particular period.

Index

Interest rates have a significant impact on the operations and financial results of all financial services companies. One of the most important interest rates used to control national economic policy is the “Federal Funds” rate. This is the interest rate utilized within the banking system for overnight borrowings for institutions with the highest credit rating. The Federal Funds rate remained flat for most of 2026 at a range of 3.50% to 3.75% until the rate was increased in September 2026 to 3.75% to 4.00%.

The interest rate on the 10-year Treasury bond and other long-term interest rates have significant influence on the rates for new residential real estate loans and longer term investments. These changes in interest rates have an effect on the Company relative to the interest income on loans, securities, and Federal Funds Sold and other short-term instruments as well as the interest expense on deposits and borrowings. Residential real estate loans and longer term investments are most affected by the changes in longer term market interest rates such as the 10‑year Treasury. The Federal Funds Sold portfolio and other short‑term investments are affected primarily by changes in the Federal Funds target rate. Deposit interest rates are most affected by short term market interest rates. Also, changes in interest rates have an effect on the recorded balance of the securities available for sale portfolio, which is recorded at fair value. Generally, as market interest rates increase, the fair value of the securities will decrease and the reverse is also generally applicable. Interest rates on new residential real estate loan originations are also influenced by the rates established by secondary market participants such as Freddie Mac and Fannie Mae. The Company establishes rates that management determines are appropriate in light of the long-term nature of residential real estate loans while remaining competitive. Higher market interest rates also generally increase the value of retail deposits.

TrustCo’s principal loan products are residential real estate loans. Most of TrustCo’s residential real estate loans carry a fixed rate of interest. As noted above, residential real estate loans and longer‑term investments are most affected by the changes in longer term market interest rates such as the 10-year Treasury. The 10‑year Treasury yield increased 34 basis points, on average, during the third quarter of 2026 compared to the second quarter of 2026 and increased 50 basis points as compared to the third quarter of 2025.

While TrustCo has been affected by changes in financial markets over time, management believes that the impacts have been mitigated by the Company’s generally conservative approach to banking. The Company utilizes a traditional underwriting process in evaluating loan applications, and since originated loans are retained in the portfolio, there is a strong incentive to be conservative in making credit decisions. For additional information concerning TrustCo’s loan portfolio and nonperforming loans, please refer to the discussions under “Loans” and “Nonperforming Assets,” respectively. Further, the Company does not rely on borrowed funds to support its assets and maintains a significant level of liquidity on the asset side of the balance sheet. Management believes that these characteristics provide the Company with increased flexibility and stability during periods of market disruption and interest rate volatility.

A fundamental component of TrustCo’s strategy has been to grow customer relationships and the deposits and loans that are part of those relationships. Management believes that the Company has significant capacity to grow its balance sheet given its extensive branch network.

Index

The Company expects that growth to be profitable. While the Company has not changed its fundamental long term strategy in regard to utilizing its excess capacity, management continually evaluates changing conditions and may seek to limit growth or reduce the size of the balance sheet if its analysis indicates that doing so would be beneficial.

For the third quarter of 2026, the net interest margin was 2.95%, up 16 basis points versus the prior year’s quarter. The quarterly results reflect the following significant factors:

•

The average balance of Federal Funds sold and other short-term investments decreased by $12.9 million and the average yield decreased 70 basis points in the third quarter of 2026 compared to the same period in 2025.

•

The average balance of securities available for sale decreased by $31.9 million and the average yield increased 24 basis points to 3.15%. The increase in the average yield was a result of higher yields on investments purchased during 2025 and the first nine months of 2026, as well as maturities of lower yielding securities over the same periods. The increase in the average yield was not enough to offset the decrease in average balance, resulting in less interest income.

•

The average loan portfolio grew by $238.1 million to $5.41 billion and the average yield increased 17 basis points to 4.49% in the third quarter of 2026 compared to the same period in 2025.

•

The average balance of interest-bearing liabilities increased $212.0 million and the average rate paid decreased 11 basis points to 1.79% in the third quarter of 2026 compared to the same period in 2025.

During the third quarter of 2026, the Company continued to focus on its strategy to expand its loan portfolio by offering competitive interest rates. Management believes the TrustCo residential real estate loan product is very competitive compared to local and national competitors. Competition remains strong in the Company’s market areas.

For the nine months ended September 30, 2026, the net interest margin was 2.89%, up 18 basis points versus the prior year. The nine-month results reflect the following significant factors:

•

The average balance of Federal Funds sold and other short-term investments increased by $27.1 million and the average yield decreased 73 basis points in the third quarter of 2026 compared to the same period in 2025. The increase in the average balance was not enough to offset the decrease in average yield, resulting in less interest income.

•

The average balance of securities available for sale decreased by $39.1 million and the average yield increased 27 basis points to 3.05% for the first nine months of 2026 compared to the same period in 2025. The increase in the average yield was a result of higher yields on investments purchased during 2025 and the first nine months of 2026, as well as maturities of lower yielding securities over the same periods. The increase in the average yield was not enough to offset the decrease in average balance, resulting in less interest income.

Index

•

The average loan portfolio grew by $198.5 million to $5.34 billion and the average yield increased 18 basis points to 4.43% for the first nine months of 2026 compared to the same period in 2025.

•

The average balance of interest-bearing liabilities increased $187.3 million and the average rate paid decreased 12 basis points to 1.79% for the first nine months of 2026 compared to the same period in 2025.

The strategy on the funding side of the balance sheet was to offer competitive core deposit products coupled with short term time accounts. We believe that this strategy has sustained TrustCo’s strong liquidity position and continues to allow us to cross sell products to new and existing customer relationships and take advantage of opportunities as they arise.

Earning Assets

Total average interest earning assets increased from $6.20 billion in the third quarter of 2025 to $6.39 billion in the same period of 2026 with an average yield of 4.35% in the third quarter of 2026 and 4.25% in the third quarter of 2025. The mix of assets invested in loans increased, while Federal Funds sold and other short-term investments and securities available for sale decreased over the prior year period. Interest income on average earning assets increased from $66.0 million in the third quarter of 2025 to $69.6 million in the third quarter of 2026. This increase was primarily driven by the increase in interest income on loans due to higher loan balances and higher interest rates on loan originations over the last year and variable rate loans repricing upwards.

Loans

The average balance of loans was $5.41 billion in the third quarter of 2026 and $5.18 billion in the comparable period in 2025, and the yield on loans was up 17 basis points to 4.49%. Interest income on loans was $60.9 million in the third quarter of 2026 up $4.9 million from the same period in 2025, primarily as a result of increased balances and higher interest rates on new originations compared to the existing portfolio yield.

Compared to the third quarter of 2025, the average balance of residential mortgage loans, home equity credit lines, and commercial loans increased, while the average balance of installment loans decreased.

The average balance of residential mortgage loans was $4.59 billion in the third quarter of 2026 compared to $4.41 billion in 2025, an increase of 4.0%. The average yield on residential mortgage loans increased by 21 basis points to 4.21% in the third quarter of 2026 compared to 2025, primarily as a result of the higher interest rates on new originations compared to the existing portfolio yield.

Index

TrustCo actively markets the residential loan products within its market territories. Mortgage loan rates are affected by a number of factors including rates on Treasury securities, the Federal Funds target rate and rates set by competitors and secondary market participants. TrustCo aggressively markets the unique aspects of its loan products thereby attempting to create differentiation from other lenders. These unique aspects include low closing costs, fast turn-around time on loan approvals, and no escrow or mortgage insurance requirements for qualified borrowers. Assuming a change in long-term interest rates, the Company would anticipate that the unique features of its loan products will continue to attract customers in the residential mortgage loan area.

Commercial loans, which consist primarily of loans secured by commercial real estate, increased $13.5 million to an average balance of $327.3 million in the third quarter of 2026 compared to the same period in the prior year. The average yield on this portfolio was up 5 basis points to 5.69% compared to the prior year period, primarily as a result of higher interest rates on new originations compared to the existing portfolio yield and certain variable rate loans that repriced upwards. The Company has remained selective in underwriting commercial loans in 2026 as the apparent risk/reward balance has been less favorable in some cases.

The average yield on home equity credit lines decreased 19 basis points to 6.31% during the third quarter of 2026 compared to the year earlier period. The average balances of home equity credit lines increased 11.4% to $490.3 million in the third quarter of 2026 as compared to the prior year.

Securities Available for Sale

The average balance of the securities available for sale portfolio for the third quarter of 2026 was $315.1 million compared to $347.0 million for the comparable period in 2025. The decrease in the balance reflects routine paydowns, calls and maturities, partially offset by new investment purchases. The average yield was 3.15% for the third quarter of 2026 compared to 2.91% for the third quarter of 2025. The increase in average yield is a result of higher yields on bonds purchased as well as lower rate bonds maturing since the prior year quarter. This portfolio is primarily comprised of agency issued residential mortgage-backed securities, bonds issued by government sponsored enterprises (such as Fannie Mae, the Federal Home Loan Bank, and Freddie Mac), Small Business Administration participation certificates, corporate bonds and municipal bonds. These securities are recorded at fair value with any adjustment in fair value included in other comprehensive income (loss), net of tax.

The net unrealized loss in the available for sale securities portfolio was $27.5 million as of September 30, 2026 compared to a net unrealized loss of $16.3 million as of December 31, 2025. The increase in net unrealized losses in the portfolio is the result of changes in the current interest rate environment.

Held to Maturity Securities

The average balance of held to maturity securities was $3.7 million for the third quarter of 2026 compared to $4.7 million in the third quarter of 2025. The decrease in balances reflects routine paydowns. No new securities were added to this portfolio during the period. The average yield was 4.53% for the third quarter of 2026 up from 4.40% for the year earlier period. TrustCo expects to hold the securities in this portfolio until they mature or are called.

The net unrecognized loss in the held to maturity securities portfolio was $78 thousand as of September 30, 2026 compared to a net unrecognized gain of $50 thousand as of December 31, 2025. The change from a net unrecognized gain to a net unrecognized loss in the portfolio is the result of changes in market interest rate levels.

Index

As of September 30, 2026, this portfolio consisted solely of agency issued residential mortgage-backed securities. The balances for these securities are recorded at amortized cost.

Federal Funds Sold and Other Short-Term Investments

The average balance of Federal Funds sold and other short‑term investments was $649.8 million for the third quarter of 2026 compared to $662.7 million in the third quarter of 2025. The yield was 3.72% for the third quarter of 2026 and 4.42% for the comparable period in 2025. Interest income from this portfolio decreased $1.3 million from $7.4 million in 2025 to $6.1 million in 2026.

The Federal Funds sold and other short-term investments portfolio is utilized to generate additional interest income and liquidity as funds are waiting to be deployed into the loan and securities portfolios.

Funding Opportunities

TrustCo utilizes various funding sources to support its earning asset portfolio. The vast majority of the Company’s funding comes from traditional deposit vehicles such as savings, demand deposit, interest-bearing checking, money market and time deposit accounts.

Total average interest-bearing deposit accounts (which includes interest-bearing checking, money market accounts, savings and time deposits) increased $197.0 million to $4.90 billion for the third quarter of 2026 versus the third quarter in the prior year, and the average rate paid decreased from 1.92% for 2025 to 1.80% for 2026. Total interest expense on these deposits decreased from $22.7 million to $22.2 million in the third quarter of 2026 compared to the year earlier period. From the third quarter of 2025 to the third quarter of 2026, interest-bearing checking account average balances were up 5.5%, certificates of deposit average balances were up 7.6%, non-interest demand average balances were up 4.1%, average savings balances were flat and money market balances were down 4.7%. Overall, average balances are up from a year ago as we continue to encourage customers to retain their funds in the expanded product offerings of the Bank through aggressive marketing and product differentiation.

At September 30, 2026, the maturity of total time deposits was as follows:

(dollars in thousands)

Under 1 year	$	2,101,501
1 to 2 years		196,843
2 to 3 years		661
3 to 4 years		242
4 to 5 years		59
Over 5 years		20
	$	2,299,326

Index

As of September 30, 2026 and December 31, 2025, approximately $1.28 billion and $1.22 billion, respectively, of our deposit portfolio was uninsured. The uninsured amounts are estimates based on the methodologies and assumptions used for the Bank’s regulatory reporting requirements.

Average short-term borrowings for the third quarter were $102.4 million in 2026 compared to $87.3 million in 2025. The weighted average interest rate for short-term borrowings increased 47 basis points to 1.37% during this time period. The short-term borrowings of the Company are cash management accounts, which represent retail accounts with customers for which the Bank has pledged certain assets as collateral.

The Company has a number of contingent funding alternatives available in addition to the large cash and cash equivalents position and the investment securities positions it maintains on its balance sheet. The Bank is a member of the Federal Home Loan Bank of New York (“FHLBNY”) and is an eligible borrower at the Federal Reserve Bank of New York (“FRBNY”) and has the ability to borrow utilizing securities and/or loans as collateral at either institution. The Bank does not utilize brokered deposits as a part of its funding strategy, but does incorporate them as a potential contingent funding source within its Asset/Liability Management Policy. Like other contingent funding sources, brokered CDs may be tested from time to time to ensure operational and market readiness. As of September 30, 2026 the Company also has borrowing capacity of $1.03 billion available with the FHLBNY and $525 thousand available with the FRBNY. The borrowing capacity is secured by the loans pledged by the Company. As of September 30, 2026 and December 31, 2025, the Company had no outstanding borrowings with the FHLBNY or the FRBNY.

Net Interest Income

Net interest income increased by $3.9 million to $47.0 million in the third quarter of 2026 compared to the same period in 2025. The net interest spread was up 21 basis points to 2.56% in the third quarter of 2026 compared to the same period in 2025. As previously noted, the net interest margin was also up 16 basis points to 2.95% for the third quarter of 2026 compared to the same period in 2025. Yields on earning assets increased in the third quarter of 2026 compared to the third quarter of 2025, and rates on interest-bearing liabilities decreased causing margin expansion. The loan and investment portfolios continue to reprice upward as lower yielding assets mature and are replaced with higher rate loan originations and investment purchases, driving steady improvement in overall asset yields. The Federal Reserve’s decision regarding whether to raise, cut, or hold rates in upcoming meetings will have an effect on the Company’s timing and ability to raise or lower deposit costs which may impact margin in future quarters.

Net interest income increased by $12.1 million to $137.3 million in the first nine months of 2026 compared to the same period in 2025. The net interest spread was up 21 basis points to 2.49% in the first nine months of 2026 compared to the same period in 2025. Net interest margin was up 18 basis points to 2.89% for the first nine months of 2026 compared to the same period in 2025. The increases in net interest income for the first nine months of 2026 primarily resulted from the same factors discussed above for the third quarter of 2026.

Index

Nonperforming Assets

Nonperforming assets include nonperforming loans (“NPLs”), which are those loans in a non‑accrual status and loans past due three payments or more and still accruing interest. Also included in the total of nonperforming assets are foreclosed real estate properties, which are included in other assets and categorized as other real estate owned.

The following describes the nonperforming assets of TrustCo as of September 30, 2026:

Nonperforming loans and foreclosed real estate: Total NPLs were $21.1 million at September 30, 2026 compared to $20.7 million at December 31, 2025. There were no loans at September 30, 2026 and December 31, 2025 that were past due 90 days or more and still accruing interest. The coverage ratio, or allowance for credit losses on loans to NPLs, was 261.8% at September 30, 2026 compared to 252.5% at December 31, 2025.

At September 30, 2026, NPLs primarily include a mix of commercial and residential loans. Of total NPLs of $21.1 million at September 30, 2026, $19.0 million were residential real estate loans, $2.0 million were commercial loans and mortgages and $38 thousand were installment loans, compared to $18.6 million, $2.0 million and $51 thousand, respectively, at December 31, 2025.

A significant percentage of NPLs are residential real estate loans, which are historically lower-risk than most other types of loans. Net recoveries were $44 thousand on residential real estate loans (including home equity lines of credit) for the third quarter of 2026 compared to net recoveries of $194 thousand for the third quarter of 2025. Management believes that these loans have been appropriately written down where required.

Ongoing portfolio management is intended to result in early identification and disengagement from deteriorating credits. TrustCo has a diversified loan portfolio that includes a significant balance of residential mortgage loans to borrowers in the Capital Region of New York and Central Florida, and avoids concentrations to any one borrower or any single industry. TrustCo has no advances to borrowers or projects located outside the U.S. TrustCo continues to identify delinquent loans as quickly as possible and to move promptly to resolve problem loans. Efforts to resolve delinquencies begin immediately after the payment grace period expires, with repeated, automatically generated notices, as well as personalized phone calls and letters. Loans are placed in non-accrual status once they are 90 days past due, or earlier if management has determined that such classification is appropriate. Once in non-accrual status, loans are either brought current and maintained current, at which point they may be returned to accrual status, or they proceed through the foreclosure process. The collateral on non-accrual loans is evaluated periodically, and the loan value is written down if the collateral value is insufficient.

The Company originates loans throughout its branch franchise area. At September 30, 2026, 64.9% of its gross loan portfolio balances were in New York State and the immediately surrounding areas (including New Jersey, Vermont and Massachusetts), and 35.1% were in Florida. Those figures compare to 64.3% and 35.7%, respectively, at December 31, 2025.

Economic conditions vary widely by geographic location. As a percentage of the total NPLs as of September 30, 2026, 23.7% were to Florida borrowers, compared to 76.3% to borrowers in New York and surrounding areas. For the three months ended September 30, 2026, New York and surrounding areas experienced net recoveries of approximately $45 thousand and Florida experienced net charge-offs of $15 thousand for the third quarter of 2026.

Index

Other than loans currently identified as nonperforming, management is aware of no other loans in the Bank’s portfolio that pose material risk of the eventual non-collection of principal and interest. Also as of September 30, 2026, there were no other loans classified for regulatory purposes that management reasonably expects will materially impact future operating results, liquidity, or capital resources.

Loans individually evaluated for impairment are non-accrual residential loans delinquent greater than 180 days, non-accrual commercial loans, as well as loans classified as loan modifications to borrowers experiencing financial difficulty. There were $2.1 million of commercial mortgages and commercial loans classified as individually evaluated as of both September 30, 2026 and December 31, 2025. There were $23.7 million of individually evaluated residential loans also at both September 30, 2026 and December 31, 2025.

As of September 30, 2026 and December 31, 2025, the Company’s loan portfolio did not include any subprime mortgages or loans acquired with deteriorated credit quality.

At September 30, 2026 there was $1.2 million of foreclosed real estate compared to $1.4 million at December 31, 2025.

Allowance for credit losses on loans:

As of September 30, 2026, the Company utilized the Baseline scenario model of Moody’s economic scenarios and considered the uncertainty associated with the assumptions in the Baseline scenario, including continued actions taken by the Federal Reserve with regard to monetary policy and interest rates and the potential impact of those actions and the potential impact of persistent high inflation on the economy. Outcomes in any or all of these factors could differ from the Baseline scenario utilized, and the Company incorporated qualitative considerations reflecting the risk of uncertain economic conditions, and for additional dimensions of risk that may not be captured in the quantitative model.

The Company also continues to apply a reasonable and supportable forecast based on Moody’s Baseline Scenario for a four-quarter period. Following the forecast period, the model uses a four-quarter straight-line reversion to historical averages.

Qualitative adjustments continue to be evaluated using a weighted scorecard framework based on regulatory interagency guidance. The framework considers internal and external factors that may not be fully captured in the quantitative model, including changes in portfolio risk characteristics, economic conditions, lending practices, and other factors affecting the credit quality of each portfolio segment.

Index

In the third quarter of 2026, the Company recorded a provision for credit losses of $850 thousand, which is the result of a provision for credit losses on loans of $1.05 million, and benefit for credit losses on unfunded commitments of $200 thousand. The increase in the Allowance for Credit Losses on Loans (“ACLL”) during the third quarter of 2026 was primarily a result of loan growth and changes in economic forecasts. In the third quarter of 2025, the Company recorded a provision for credit losses of $250 thousand, which is the result of a provision for credit losses on loans of $450 thousand, and benefit for credit losses on unfunded commitments of $200 thousand. The Company recorded a provision for credit losses of $2.5 million for the nine-months ended September 30, 2026 which is the result of a provision for credit losses on loans of $2.8 million and a benefit for credit losses on unfunded commitments of $350 thousand. The increase in the ACLL during the nine months ended September 30, 2026 was primarily a result of loan growth and changes in economic forecasts. For the nine-months ended September 30, 2025 the Company recorded a provision for credit losses of $1.2 million which is all the result of a provision for credit losses on loans and there was no provision for unfunded commitments.

See Note 5 of the consolidated interim financial statements for additional discussion related the process for determining the provision for credit losses.

The allocation of the ACLL as of September 30, 2026 and December 31, 2025 was as follows:

	As of					As of
(dollars in thousands)	September 30, 2026					December 31, 2025
			Percent of					Percent of
			Loans to					Loans to
	Amount		Total Loans			Amount		Total Loans
Commercial	$	3,124		5.48	%	$	2,786		5.40	%
Real estate - construction		497		0.89	%		411		0.80	%
Real estate mortgage - 1 to 4 family		47,855		84.33	%		42,143		84.75	%
Home equity lines of credit		3,546		9.13	%		6,636		8.84	%
Installment Loans		140		0.17	%		229		0.21	%
		55,162		100.00	%	$	52,205		100.00	%

At September 30, 2026, the allowance for loan losses was $55.2 million, compared to $52.2 million at December 31, 2025. The allowance represents 1.01% of the loan portfolio as of September 30, 2026, and 0.99% at December 31, 2025. The coverage ratio, or the allowance for credit losses on loans to NPLs, was 261.8% and 252.5% as of September 30, 2026 and December 31, 2025, respectively. The ratio of non-performing loans to total loans was 0.39% as of both September 30, 2026 and December 31, 2025, respectively.

Net recoveries for the three-month period ended September 30, 2026 were $30 thousand and net recoveries were $176 thousand for the prior year period.

During the third quarter of 2026, there were no commercial loan charge-offs, no residential loan charge-offs, and $19 thousand of consumer loan charge-offs, compared to no commercial loan charge-offs, no residential loan charge-offs, and $22 thousand of consumer loan charge-offs in the third quarter of 2025. During the third quarter of 2026 there were no commercial loan recoveries, $44 thousand of residential mortgage recoveries, and $5 thousand for consumer loan recoveries, compared to no commercial loan recoveries, $194 thousand of residential mortgage recoveries, and $4 thousand for consumer loan recoveries in the third quarter of 2025.

The following table presents the net charge-off ratio for the three and nine months ended September 30, 2026 and 2025:

Index

	For the three months ended September 30:
	2026			2025
Commercial		0.00	%		0.00	%
Real estate mortgage - 1 to 4 family		0.00	%		0.00	%
Installment		0.15	%		0.15	%
Total		0.00	%		0.00	%

	For the nine months ended September 30:
	2026			2025
Commercial		-0.01	%		-0.10	%
Real estate mortgage - 1 to 4 family		0.00	%		-0.01	%
Installment		0.23	%		1.20	%
Total		0.00	%		-0.01	%

Liquidity and Interest Rate Sensitivity

TrustCo seeks to obtain favorable sources of funding and to maintain prudent levels of liquid assets in order to satisfy varied liquidity demands. Management believes that TrustCo’s earnings performance and strong capital position enable the Company to easily secure new sources of liquidity. The Company actively manages its liquidity through target ratios established under its liquidity policies. Continual monitoring of both historical and prospective ratios allows TrustCo to employ strategies necessary to maintain adequate liquidity. Management has also defined various degrees of adverse liquidity situations which could potentially occur and has prepared appropriate contingency plans should such a situation arise. As noted, the Company has a number of contingent funding alternatives available in addition to the large cash and cash equivalents position and the investment securities positions it maintains on its balance sheet. As previously stated, the Bank is a member of the FHLBNY and is an eligible borrower at the FRBNY and has the ability to borrow utilizing securities and/or loans as collateral at either institution. As previously stated, the Bank does not utilize brokered deposits as a part of its funding strategy, but does incorporate them as a contingent funding source within its Asset/Liability Management Policy. Like other contingent funding sources, brokered deposits may be tested from time to time to ensure operational and market readiness. Management believes that the Company has adequate sources of liquidity to cover its contractual obligations and commitments over the next twelve months and beyond.

The Company uses an industry standard external model as the primary tool to identify, quantify and project changes in interest rates and their effect on loan prepayment speeds taken both from industry sources and internally generated data based upon historical trends in the Bank’s balance sheet. Assumptions based on the historical behavior of deposit rates and balances in relation to changes in market interest rates are also incorporated into the model. This model calculates an economic or fair value amount with respect to non-time deposit categories since these deposits are part of the core deposit products of the Company. The assumptions used are inherently uncertain and, as a result, the model cannot precisely measure the fair value of capital or precisely predict the impact of fluctuations in interest rates on the fair value of capital.

Using this model, the fair value of capital projections as of September 30, 2026 are referenced below. The base case (current rates) scenario shows the present estimate of the fair value of capital assuming no change in the operating environment or operating strategies and no change in interest rates from those existing in the marketplace as of September 30, 2026.

Index

The following table indicates the impact on the fair value of capital assuming interest rates were to have instantaneously increased by 100 bp, 200 bp, 300 bp and 400 bp or decreased by 100 bp, 200 bp, and 300 bp as of September 30, 2026.

	Estimated Percentage of
	Fair value of Capital to
As of Setpember 30, 2026	Fair value of Assets
+400 BP		21.10	%
+300 BP		21.80
+200 BP		22.60
+100 BP		24.60
Current rates		25.50
-100 BP		25.50
-200 BP		24.90
-300 BP		23.40

Noninterest Income

Total noninterest income for the third quarter of 2026 was $4.8 million compared to $4.7 million in the third quarter of 2025. Financial Services income was up $92 thousand to $2.1 million in the third quarter of 2026 as compared to the year-ago period. The fair value of assets under management was $1.4 billion at September 30, 2026, $1.2 billion as of December 31, 2025, and $1.3 billion at September 30, 2025.

For the nine months ended September 30, 2026 total noninterest income was $15.6 million, up $1.1 million compared to the prior year period. The increase is primarily the result of the gain of $900 thousand recorded on the Visa Class C Common stock exchange during the nine months ended September 30, 2026.

Noninterest Expenses

Total noninterest expenses were $28.0 million for the three months ended September 30, 2026 compared to $26.2 million for the same period in 2025. Significant changes included a $368 thousand increase in equipment expense, a $173 thousand increase in professional fees, a $308 thousand increase in outsourced services, a $178 thousand increase in advertising expense and a $613 increase in other expenses. Full time equivalent headcount was 738 as of September 30, 2025, 743 as of December 31, 2025, and 740 as of September 30, 2026. Changes in headcount represent normal fluctuations.

Total noninterest expenses were $83.3 million for the nine months ended September 30, 2026, compared to $78.8 million for the nine months ended September 30, 2025. Significant changes included an increase of $1.5 million in salaries and employee benefits, an increase of $610 thousand in equipment expense, an increase of $552 thousand in outsourced services, an increase of $493 thousand in advertising expense and an increase of $1.8 million in other expense, partially offset by a decrease of $408 thousand in other real estate expense, net.

Index

Income Taxes

In the third quarter of 2026, TrustCo recognized income tax expense of $5.7 million compared to $5.1 million for the third quarter of 2025. The effective tax rates were 24.7% and 23.7% for the third quarters of 2026 and 2025, respectively. For the first nine months, income taxes were $16.6 million and $14.2 million in 2026 and 2025, respectively. The effective tax rate was 24.7% and 23.7% for 2026 and 2025, respectively.

Capital Resources

Consistent with its long-term goal of operating a sound and profitable financial organization, TrustCo strives to maintain strong capital ratios.

Banking regulators have moved towards higher required capital requirements due to the standards included in the “Basel III” banking capital reform measures and the Dodd-Frank Wall Street Reform and Consumer Protection Act, as well as a general trend towards reducing risk in the banking system by providing a greater capital margin.

Total shareholders’ equity at September 30, 2026 was $631.3 million compared to $692.0 million at September 30, 2025. TrustCo declared a dividend of $0.40 per share in the third-quarter of 2026 and $0.38 per share in the third quarter of 2025. This results in a dividend payout ratio of 38.58% for the third quarter of 2026 based on earnings for the quarter of $17.3 million, compared to a dividend payout ratio of 43.68% for the third quarter of 2025 based on earnings for the quarter of $16.3 million.

The capital rules, which are generally applicable to both the Company and the Bank, include several measures; specifically, a Tier 1 leverage ratio, a common equity tier 1 (“CET1”) capital ratio, a tier 1 risk-based capital ratio and a total risk-based capital ratio. The rules also impose a capital conservation buffer that requires the Company and the Bank to maintain additional levels of Tier 1 common equity over the minimum risk-based capital levels before they may pay dividends, repurchase shares or pay discretionary bonuses.

Index

The Bank and the Company reported the following capital ratios as of September 30, 2026 and December 31, 2025:

(Bank Only)									Minimum for
									Capital Adequacy plus
	As of September 30, 2026					Well			Capital Conservation
(dollars in thousands)	Amount		Ratio			Capitalized⁽¹⁾			Buffer⁽¹⁾⁽²⁾

Tier 1 leverage ratio	$	566,137		8.648	%		5.000	%		4.000	%
Common equity tier 1 capital		566,137		14.763			6.500			7.000
Tier 1 risk-based capital		566,137		14.763			8.000			8.500
Total risk-based capital		614,182		16.016			10.000			10.500

									Minimum for
									Capital Adequacy plus
	As of December 31, 2025					Well			Capital Conservation
(dollars in thousands)	Amount		Ratio			Capitalized⁽¹⁾			Buffer⁽¹⁾⁽²⁾

Tier 1 leverage ratio	$	513,719		8.058	%		5.000	%		4.000	%
Common equity tier 1 capital		513,719		13.981			6.500			7.000
Tier 1 risk-based capital		513,719		13.981			8.000			8.500
Total risk-based capital		559,750		15.234			10.000			10.500

(Consolidated)
						Minimum for
						Capital Adequacy plus
	As of September 30, 2026					Capital Conservation
(dollars in thousands)	Amount		Ratio			Buffer⁽¹⁾⁽²⁾

Tier 1 leverage ratio	$	630,695		9.633	%		4.000	%
Common equity tier 1 capital		630,695		16.442			7.000
Tier 1 risk-based capital		630,695		16.442			8.500
Total risk-based capital		678,752		17.695			10.500

						Minimum for
						Capital Adequacy plus
	As of December 31, 2025					Capital Conservation
(dollars in thousands)	Amount		Ratio			Buffer⁽¹⁾⁽²⁾

Tier 1 leverage ratio	$	676,012		10.601	%		4.000	%
Common equity Tier 1 capital		676,012		18.393			7.000
Tier 1 risk-based capital		676,012		18.393			8.500
Total risk-based capital		722,055		19.646			10.500

(1)	Federal regulatory minimum requirements to be considered to be Well Capitalized and Adequately Capitalized

(2)	The September 30, 2026 and December 31, 2025 common equity tier 1, tier 1 risk-based, and total risk-based capital ratios include a capital conservation buffer of 2.50 percent

In addition, at September 30, 2026, the consolidated equity to total assets ratio was 9.72%, compared to 10.66% at December 31, 2025.

As of September 30, 2026, the capital levels of both TrustCo and the Bank exceeded the minimum standards, including with the fully phased-in capital conservation buffer taken into account.

Index

Under the Office of the Comptroller of the Currency’s (“OCC”) “prompt corrective action” regulations, a bank is deemed to be “well capitalized” when its CET1, Tier 1, total risk-based and leverage capital ratios are at least 6.5%, 8.0%, 10.0%, and 5.0%, respectively. A bank is deemed to be “adequately capitalized” or better if its capital ratios meet or exceed the minimum federal regulatory capital requirements, and “undercapitalized” if it fails to meet these minimal capital requirements. A bank is “significantly undercapitalized” if its CET1, Tier 1, total risk-based and leverage capital ratios fall below 3%, 4%, 6% and 3%, respectively and “critically undercapitalized” if the institution has a ratio of tangible equity to total assets that is equal to or less than 2%. At September 30, 2026 and December 31, 2025, Trustco Bank met the definition of “well capitalized.”

As noted, the Company’s dividend payout ratio was 38.58% of net income for the third quarter of 2026 and 43.68% of net income for the third quarter of 2025. The per-share dividend paid in the third quarter of 2026 was $0.40 per share compared to $0.38 in the third quarter of 2025. The Company’s ability to pay dividends to its shareholders is dependent upon the ability of the Bank to pay dividends to the Company. The payment of dividends by the Bank to the Company is subject to continued compliance with minimum regulatory capital requirements. The OCC may disapprove a dividend if the Bank would be undercapitalized following the distribution; the proposed capital distribution raises safety and soundness concerns; or the capital distribution would violate a prohibition contained in any statute, regulation or agreement.

TrustCo maintains a dividend reinvestment and stock purchase plan (DRSPP) with approximately 5,433 participants. The DRSPP allows participants to reinvest dividends in shares of the Company. The DRP also allows for additional purchases by participants and has a discount feature (up to a 5% for safe harbor provisions) that can be activated by management as a tool to raise capital. To date, the discount feature has not been utilized.

Share Repurchase Program

On December 19, 2025, the Company’s Board authorized, and the Company announced, a share repurchase program of up to 2,000,000 shares, or approximately 11% of its then currently outstanding common stock. The program expires on December 31, 2026. During the three-months ended September 30, 2026, the Company repurchased a total of 500,000 shares at an average price per share of $57.34 for a total of $28.7 million under its Board authorized share repurchase program. As of September 30, 2026, the Company was authorized to repurchase up to an additional 498,633 shares of common stock under the share repurchase program.

Critical Accounting Policies and Estimates

Our consolidated financial statements are prepared in accordance with accounting principles generally accepted in the U.S. The preparation of these consolidated financial statements requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, costs and expenses, income taxes and related disclosures. On an ongoing basis, we evaluate our estimates and assumptions. Our actual results may differ from these estimates under different assumptions or conditions.

During the nine months ended September 30, 2026, there were no significant changes to our critical accounting policies and estimates as described in the consolidated financial statements contained in the 2025 Form 10-K other than what is set forth immediately below.

Management considers the accounting policy relating to the allowance for credit losses to be a critical accounting policy given the measurement uncertainty and subjective judgement necessary in evaluating the levels of the allowance required to cover the life-time losses in the loan portfolio and the material effect that such judgments can have on the results of operations.

Index

TrustCo Bank Corp NY

Management’s Discussion and Analysis

STATISTICAL DISCLOSURE

I. DISTRIBUTION OF ASSETS, LIABILITIES AND SHAREHOLDERS’ EQUITY:

INTEREST RATES AND INTEREST DIFFERENTIAL

The following table summarizes the component distribution of the average balance sheet, related interest income and expense and the average annualized yields on interest earning assets and annualized rates on interest bearing liabilities of TrustCo for each of the reported periods.

Nonaccrual loans are included in loans for this analysis. The average balances of securities available for sale and held to maturity are calculated using amortized costs for these securities. Included in the average balance of shareholders’ equity is the unrealized loss, net of tax, in the available for sale portfolio of $16.9 million in 2026 and $14.8 million in 2025. The subtotals contained in the following table are the arithmetic totals of the items contained in that category. Increases and decreases in interest income and expense due to both rate and volume have been allocated to the categories of variances (volume and rate) based on the percentage relationship of such variances to each other.

	Three months ended								Three months ended
(dollars in thousands)	September 30, 2026								September 30, 2025

	Average			Interest		Average			Average			Interest		Average			Change in			Variance			Variance
	Balance					Rate			Balance					Rate			Interest			Balance			Rate
																	Income/			Change			Change
Assets																	Expense

Securities available for sale:
U. S. government sponsored enterprises	$	10,977		$	86		3.13	%	$	69,294		$	599		3.46	%	$	(513	)	$	(460	)	$	(53	)
Mortgage backed securities and collateralized mortgage obligations-residential		217,254			1,509		2.75			237,092			1,583		2.65			(74	)		(379	)		305
State and political subdivisions		9			-		6.77			18			1		6.77			(1	)		(1	)		-
Corporate bonds		75,681			820		4.33			26,512			265		4.00			555			531			24
Small Business Administration-guaranteed participation securities		10,440			56		2.14			13,385			72		2.15			(16	)		(16	)		-
Other		717			8		4.46			700			7		4.00			1			-			1

Total securities available for sale		315,078			2,479		3.15			347,001			2,527		2.91			(48	)		(325	)		277

Federal funds sold and other short-term Investments		649,823			6,098		3.72			662,737			7,376		4.42			(1,278	)		(141	)		(1,137	)

Held to maturity securities:
Mortgage backed securities and collateralized mortgage obligations-residential		3,740			43		4.53			4,709			52		4.40			(9	)		(19	)		10

Total held to maturity securities		3,740			43		4.53			4,709			52		4.40			(9	)		(19	)		10

Federal Reserve Bank and Federal Home Loan Bank stock		6,756			112		6.63			6,601			125		7.57			(13	)		18			(31	)

Commercial loans		327,267			4,654		5.69			313,800			4,426		5.64			228			191			37
Residential mortgage loans		4,586,955			48,286		4.21			4,409,645			44,089		4.00			4,197			1,814			2,383
Home equity lines of credit		490,310			7,739		6.31			440,288			7,215		6.50			524			1,735			(1,211	)
Installment loans		9,182			196		8.54			11,842			223		7.48			(27	)		(171	)		144

Loans, net of unearned income		5,413,714			60,875		4.49			5,175,575			55,953		4.32			4,922			3,569			1,353

Total interest earning assets		6,389,111			69,607		4.35			6,196,623			66,033		4.25			3,574			3,102			472

Allowance for credit losses on loans		(54,467	)							(51,706	)
Cash & non-interest earning assets		219,106								208,701

Total assets	$	6,553,750							$	6,353,618

Liabilities and shareholders’ equity

Deposits:
Interest bearing checking accounts	$	1,092,564		$	642		0.23	%	$	1,035,366		$	483		0.18	%		159			28			131
Money market accounts		442,480			1,597		1.43			464,334			2,065		1.76			(468	)		(94	)		(374	)
Savings		1,076,926			730		0.27			1,077,441			741		0.27			(11	)		-			(11	)
Time deposits		2,288,063			19,245		3.34			2,125,920			19,427		3.63			(182	)		5,915			(6,097	)

Total interest bearing deposits		4,900,033			22,214		1.80			4,703,061			22,716		1.92			(502	)		5,849			(6,351	)
Short-term borrowings		102,386			354		1.37			87,348			198		0.90			156			38			118

Total interest bearing liabilities		5,002,419		$	22,568		1.79			4,790,409		$	22,914		1.90			(346	)		5,887			(6,233	)

Demand deposits		825,203								792,621
Other liabilities		75,989								76,502
Shareholders’ equity		650,139								694,086

Total liabilities and shareholders’ equity	$	6,553,750							$	6,353,618

Net interest income				$	47,039							$	43,119				$	3,920		$	(2,785	)	$	6,705

Net interest spread							2.56	%							2.35	%

Net interest margin (net interest income to total interest earning assets)							2.95	%							2.79	%

Index

TrustCo Bank Corp NY

Management’s Discussion and Analysis

STATISTICAL DISCLOSURE

I. DISTRIBUTION OF ASSETS, LIABILITIES AND SHAREHOLDERS’ EQUITY:

INTEREST RATES AND INTEREST DIFFERENTIAL

Nonaccrual loans are included in loans for this analysis. The average balances of securities available for sale and held to maturity are calculated using amortized costs for these securities. Included in the average balance of shareholders’ equity is the unrealized loss, net of tax, in the available for sale portfolio of $14.3 million in 2026 and $16.7 million in 2025. The subtotals contained in the following table are the arithmetic totals of the items contained in that category. Increases and decreases in interest income and expense due to both rate and volume have been allocated to the categories of variances (volume and rate) based on the percentage relationship of such variances to each other.

	Nine months ended								Nine months ended
(dollars in thousands)	September 30, 2026								September 30, 2025

	Average			Interest		Average			Average			Interest		Average			Change in			Variance			Variance
	Balance					Rate			Balance					Rate			Interest			Balance			Rate
																	Income/			Change			Change
Assets																	Expense

Securities available for sale:
U. S. government sponsored enterprises	$	17,681		$	346		2.61	%	$	72,461		$	1,809		3.33	%	$	(1,463	)	$	(1,138	)	$	(325	)
Mortgage backed securities and collateralized mortgage obligations-residential		219,451			4,464		2.71			240,401			4,679		2.59			(215	)		(513	)		298
State and political subdivisions		9			-		6.77			18			1		6.77			(1	)		(1	)		-
Corporate bonds		70,395			2,290		4.34			30,696			735		3.19			1,555			1,217			338
Small Business Administration-guaranteed participation securities		11,098			178		2.14			14,151			228		2.15			(50	)		(49	)		(1	)
Other		712			23		4.31			698			22		4.20			1			-			1

Total securities available for sale		319,346			7,301		3.05			358,425			7,474		2.78			(173	)		(484	)		311

Federal funds sold and other short-term Investments		668,926			18,547		3.71			641,793			21,320		4.44			(2,773	)		1,355			(4,128	)

Mortgage backed securities and collateralized mortgage obligations-residential		3,972			134		4.50			4,969			163		4.37			(29	)		(87	)		58

Total held to maturity securities		3,972			134		4.50			4,969			163		4.37			(29	)		(87	)		58

Federal Reserve Bank and Federal Home Loan Bank stock		6,704			361		7.18			6,567			405		8.22			(44	)		9			(53	)

Commercial loans		320,738			13,565		5.64			306,091			12,851		5.60			714			620			94
Residential mortgage loans		4,532,068			140,718		4.14			4,394,245			129,940		3.94			10,778			4,156			6,622
Home equity lines of credit		476,358			22,297		6.26			427,830			20,480		6.40			1,817			2,536			(719	)
Installment loans		9,923			617		8.32			12,440			689		7.40			(72	)		(186	)		114

Loans, net of unearned income		5,339,087			177,197		4.43			5,140,606			163,960		4.25			13,237			7,126			6,111

Total interest earning assets		6,338,035			203,540		4.28			6,152,360			193,322		4.19			10,218			7,919			2,299

Allowance for credit losses on loans		(53,483	)							(50,991	)
Cash & non-interest earning assets		220,871								204,651


Total assets	$	6,505,423							$	$ 6,306,020

Liabilities and shareholders’ equity

Deposits:
Interest bearing checking accounts	$	1,079,452		$	1,726		0.21	%	$	$ 1,037,598		$	1,577		0.20	%		149			65			84
Money market accounts		445,015			4,780		1.44			468,059			6,140		1.75			(1,360	)		(291	)		(1,069	)
Savings		1,072,414			2,108		0.26			1,084,712			2,208		0.27			(100	)		(25	)		(75	)
Time deposits		2,244,343			56,465		3.36			2,088,844			57,605		3.69			(1,140	)		5,679			(6,819	)

Total interest bearing deposits		4,841,224			65,079		1.80			4,679,213			67,530		1.93			(2,451	)		5,428			(7,879	)
Short-term borrowings		109,206			1,124		1.38			83,885			554		0.88			570			200			370

Total interest bearing liabilities		4,950,430			66,203		1.79			4,763,098		$	68,084		1.91			(1,881	)		5,628			(7,509	)

Demand deposits		814,465								777,573
Other liabilities		74,106								76,372
Shareholders’ equity		666,422								688,977

Total liabilities and shareholders’ equity	$	6,505,423							$	$ 6,306,020

Net interest income , tax equivalent					137,337							$	125,238				$	12,099		$	2,291		$	9,808

Net interest spread							2.49	%							2.28	%

Net interest margin (net interest income to total interest earning assets)							2.89	%							2.71	%

Index

Item 3.

Quantitative and Qualitative Disclosures about Market Risk

The information presented in the “Liquidity and Interest Rate Sensitivity” section of Part I, Item 2 of this Quarterly Report on Form 10-Q is incorporated herein by reference.

As detailed in the 2025 Form 10-K, the Company is subject to interest rate risk as its principal market risk. As noted in the Management’s Discussion and Analysis for the three-month and nine-month periods ended September 30, 2026 and 2025, the Company continues to respond to changes in interest rates in such a way that positions the Company to meet short-term earning goals and also allows the Company to respond to changes in interest rates in the future. Consequently, for the third quarter of 2026, the Company had an average balance of Federal Funds sold and other short-term investments of $649.8 million compared to $662.7 million in the third quarter of 2025. As investment opportunities present themselves, management plans to invest funds from the Federal Funds sold and other short-term investment portfolio into the securities available for sale, securities held to maturity and loan portfolios. TrustCo does not engage in activities involving interest rate swaps, forward placement contracts, or any other instruments commonly referred to as “derivatives.” Additional disclosure of interest rate risk can be found under “Liquidity and Interest Rate Sensitivity” and “Asset/Liability Management” in the Management’s Discussion and Analysis section of this document.

Item 4.

Controls and Procedures

Disclosure Controls and Procedures

The Company maintains disclosure controls and procedures (as that term is defined in Rules 13a-15(e) and 15d-15(e) of the Exchange Act) designed to ensure that information required to be disclosed in the reports that the Company files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the SEC. An evaluation was carried out under the supervision and with the participation of the Company’s management, including the Chief Executive Officer and Chief Financial Officer, of the effectiveness of the Company’s disclosure controls and procedures as of the end of the period covered by this report. Based upon this evaluation of those disclosure controls and procedures, the Chief Executive Officer and Chief Financial Officer of the Company concluded, as of the end of the period covered by this report, that the Company’s disclosure controls and procedures were effective to ensure that information required to be disclosed in the reports the Company files and submits under the Exchange Act is recorded, processed, summarized and reported as and when required.

In designing and evaluating the Company’s disclosure controls and procedures, management recognized that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives, and management necessarily was required to apply its judgment in evaluating the cost-benefit relationship of possible controls and procedures. Further, no evaluation of a cost-effective system of controls can provide absolute assurance that all control issues and instances of fraud, if any, will be detected.

Index

Changes in Internal Control over Financial Reporting

There have been no changes in internal control over financial reporting (as defined in Rule 13a-15(f) and 15d-15(f) of the Exchange Act) during the quarter to which this report relates that have materially affected or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

PART II

OTHER INFORMATION

Item 1.

Legal Proceedings

The nature of TrustCo’s business generates a certain amount of litigation against TrustCo and its subsidiaries involving matters arising in the ordinary course of business. In the opinion of management of TrustCo, there are no proceedings pending to which TrustCo or any of its subsidiaries is a party, or of which its property is the subject which, if determined adversely to TrustCo or such subsidiaries, would be material in relation to TrustCo’s consolidated shareholders’ equity and financial condition.

Item 1A.

Risk Factors

An investment in the Company involves risks, including the risks discussed in Item 1A. “Risk Factors” of the Company’s 2025 Form 10-K, which risk factors have not materially changed.

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

Sales of Unregistered Securities

None.

Issuer Purchases of Equity Securities

Share Repurchase Program

The following table provides certain information with respect to the Company’s purchases of its common shares during the three months ended September 30, 2026:

	Issuer Purchases of Common Shares
Period	Total numbers of shares purchased		Average price paid per share		Total number of shares purchased as part of publicly announced plans or programs		Maximum number of shares that may yet be purchased under the plans or programs (1)
July 1, 2026 through July 31, 2026		-	$	-		-		998,633
August 1, 2026 through August 31, 2026		324,462		57.16		324,462		674,171
September 1, 2026 through September 30, 2026		175,538		57.67		175,538		498,633
Total		500,000	$	57.34		500,000		498,633

(1)

Index

Item 3.

Defaults Upon Senior Securities

None.

Item 4.

Mine Safety Disclosures

None.

Item 5.

Other Information

(a)

None.

(b)

None.

(c)

During the period covered by this report, none of the Company’s directors or executive officers adopted or terminated a Rule 10b5-1 trading arrangement or a non-Rule 10b5-1 trading arrangement (each as defined in Item 408 of Regulation S-K under the Securities Exchange Act of 1934, as amended).

Item 6.

Exhibits

Reg S-K (Item 601)
Exhibit No.	Description

3(a)	Amended and Restated Certificate of Incorporation of TrustCo Bank Corp NY, as amended, incorporated by reference to Exhibit 3.1 to TrustCo Bank Corp NY’s Quarterly Report on Form 10-Q, filed August 5, 2021.

3(b)	Amended and Restated Bylaws of TrustCo Bank Corp NY, effective October 17, 2023, incorporated by reference to Exhibit 3.1 to TrustCo Bank Corp NY’s Current Report on Form 8-K, filed October 17, 2023.

15	Crowe LLP Letter Regarding Unaudited Interim Financial Information

31(a)	Certification of the Chief Executive Officer pursuant to Rule 13a-14(a)/15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

31(b)	Certification of the Chief Financial Officer pursuant to Rule 13a-14(a)/15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

Index

32	Section 1350 Certifications of Robert J. McCormick, principal executive officer and Michael M. Ozimek, principal financial officer.

101	Sections of the Quarterly Report on Form 10-Q for the quarter ended September 30, 2026, formatted in Inline XBRL (eXtensible Business Reporting Language), submitted in the following files:

101.INS	Inline XBRL Instance Document

101.SCH	Inline XBRL Taxonomy Extension Schema Document

101.CAL	Inline XBRL Taxonomy Extension Calculation Linkbase Document

101.DEF	Inline XBRL Taxonomy Extension Definition Linkbase Document

101.LAB	Inline XBRL Taxonomy Extension Label Linkbase Document

101.PRE	Inline XBRL Taxonomy Extension Presentation Linkbase Document

104	Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

Index

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	TrustCo Bank Corp NY

	By: /s/ Robert J. McCormick

	Robert J. McCormick
	Chairman, President and Chief Executive Officer

	By: /s/ Michael M. Ozimek

	Michael M. Ozimek
	Executive Vice President and Chief Financial Officer

Date: November 6, 2026