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 Exhibit 99(a)
 
  
5 Sarnowski Drive, Glenville, New York, 12302
News Release
   
Subsidiary:
Trustco Bank
Nasdaq -- TRST
 
 
 
Contact:
Robert Leonard
 
 
Executive Vice President
 
 
(518) 381-3693
 
 
FOR IMMEDIATE RELEASE:
 
TrustCo Reports 12.8% Increase in Net Income for the Second Quarter of 2026
to $17 Million
 
Executive Snapshot:
 
Financial results:
●
Key metrics for the second quarter of 2026 compared to the second quarter of 2025:
■
Diluted earnings per share of $0.98 increased 24.1% compared to $0.79
■
Net interest income of $45.6 million, up 9.2% from $41.7 million
■
Net interest margin of 2.87%, up 16 basis points from 2.71%
■
Net income of $17.0 million increased 12.8% compared to $15.0 million
■
Average loans increased $197.5 million, or 3.8%
■
Average deposits increased $208.6 million, or 3.8%
 
●
Capital position and Stock Repurchase Program:
■
Book value per share as of June 30, 2026 was $38.53, up from $36.75 as of June 30, 2025
■
Purchased 10.5% of TrustCo outstanding common stock under the 2026 and 2025 Stock Repurchase Programs through the acquisition of over one million shares in the first half of 2026, following the purchase of one million shares in 2025, reinforcing a disciplined long-term capital allocation strategy
■
On pace to complete the repurchase of a total of three million shares, or 15.8%, of TrustCo common stock by the end of 2026
 
Glenville, New York – July 21, 2026
 
TrustCo Bank Corp NY (TrustCo, NASDAQ: TRST) today announced financial results for the second quarter of 2026 highlighted by a continued increase in net interest income and sustained loan and deposit growth across core lending and deposit categories. For the three months ended June 30, 2026, net interest income increased 9.2% year over year to $45.6 million. This was driven by the ongoing asset repricing across our loan portfolio at higher yields and effective execution of deposit growth and pricing strategies. For the three months ended June 30, 2026, net interest margin expanded to 2.87% from 2.71% in the prior year period. This resulted in second quarter 2026 net income of $17.0 million, or $0.98 diluted earnings per share, compared to net income of $15.0 million, or $0.79 diluted earnings per share, for the second quarter 2025; and net income of $33.3 million, or $1.89 diluted earnings per share, for the six months ended June 30, 2026, compared to net income of $29.3 million, or $1.54 diluted earnings per share, for the six months ended June 30, 2025.
 
During the second quarter of 2026, TrustCo recognized an $844 thousand unrealized gain on equity securities resulting from the conversion of Visa Class B-2 shares into a combination of Visa Class B‑3 and Visa Class C shares and the fair-value recognition of the Class C shares received. The Company had not sold the resulting Class C shares as of June 30, 2026. 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.
 
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Overview
 
Chairman, President, and CEO, Robert J. McCormick, said “We are very pleased to report another quarter of stellar results. As expected, we have seen favorable repricing in our loan portfolio that has contributed to improving net interest margin. We also have seen steady growth in loans and deposits – each of which is up 3.8% year over year. This kind of symmetry in loan and deposit growth represents the ongoing realization of one of our long-time business goals. We take the deposits that we gather and lend those funds right back out into the communities that we serve. We also are realizing success on our long-term capital allocation strategy which has seen the company repurchase two million shares over the past year and a half, and we are on pace to purchase another million shares by the end of this year, which would bring the total for 2025-2026 to nearly 16% of TrustCo’s outstanding shares. We also are pleased to announce that we have moved into the building that we repurposed into our regional corporate headquarters in historic Longwood, Florida, which speaks volumes about our commitment to that great state.”
 
Details
 
We have continued to see meaningful net income and net interest income improvement. Management expects these improvements to remain sustainable. The loan and investment portfolios of TrustCo Bank (the “Bank”) 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. We believe that this ongoing repricing reflects disciplined loan production aligned with current market conditions. Complementing this, the Bank maintains a strong liquidity position, driven by deposit growth while decreasing funding costs which underscores the Bank's disciplined relationship banking strategy and the value customers place on stability and service. We believe that these factors position the Bank to generate continued net income and net interest income growth in the coming quarters and deliver long-term value to shareholders. Net interest income was $45.6 million for the second quarter of 2026, an increase of $3.8 million, or 9.2%, compared to the second quarter of 2025, driven by loan growth at higher interest rates and a decrease in interest expense. The net interest margin for the second quarter of 2026 was 2.87%, up 16 basis points from 2.71% in the second quarter of 2025. The yield on interest-earning assets increased to 4.27% in the second quarter of 2026, up 8 basis points from 4.19% in the second quarter of 2025. The cost of interest bearing liabilities decreased to 1.79% in the second quarter of 2026, down from 1.91% in the second quarter of 2025.
 
Average loans were up $197.5 million, or 3.8%, in the second quarter of 2026 over the same period in 2025. Average residential loans and Home Equity Credit Lines (HECLs), our primary lending focus, were up $142.0 million, or 3.2%, and $44.8 million, or 10.4%, respectively, in the second quarter of 2026 over the same period in 2025. Average commercial loans also increased $13.4 million, or 4.4%, in the second quarter of 2026 over the same period in 2025. Loan growth in the second quarter of 2026 remained steady, driven by continued strength in core relationship lending. Credit quality metrics were stable. Following this period of sustained growth, TrustCo remains confident in the quality of its loan portfolio amid broader market concerns. We believe that our continued focus on strong underwriting within our loan portfolio and conservative lending standards positions us to manage credit risk effectively in the current environment. The consistent growth in the loan portfolio will likely enhance net interest income in the quarters ahead. Average deposits were up $208.6 million, or 3.8%, for the second quarter of 2026 compared to the second quarter of 2025, primarily as a result of an increase in time deposits, interest bearing checking accounts, and demand deposits. The Bank’s ongoing emphasis on relationship banking, combined with competitive product offerings and digital capabilities, has contributed to a broadening deposit base that supports ongoing loan growth and expansion.
 
Page | 2
 
During the second quarter of 2026, the Bank remained focused on capital deployment and allocation, guided by a disciplined framework, with share repurchases continuing to serve as a key tool to enhance shareholder value. This reflects our confidence in the long-term strength of the franchise and our focus on capital optimization. For the six months ended June 30, 2026, TrustCo repurchased one million shares, or 5.6%, of TrustCo’s outstanding common stock under its previously announced stock repurchase program, which authorizes TrustCo to repurchase up to two million shares, or 11.1%, of TrustCo’s outstanding common stock in 2026. We continue to believe that our approach ensures every dollar of capital is working to generate solid returns, strengthen customer relationships, and enhance shareholder value. As of June 30, 2026, our equity to asset ratio was 10.05%, compared to 10.91% as of June 30, 2025. Book value per share as of June 30, 2026 was $38.53, up 4.8% compared to $36.75 as of a year earlier.
 
Asset quality remains strong and has been consistent over the past twelve months. TrustCo recorded a provision for credit losses of $650 thousand in the second quarter of 2026, flat compared to the same period in 2025. For the three months ended June 30, 2026, the provision for credit losses was the result of a provision for credit losses on loans of $1.0 million and a benefit for credit losses on unfunded commitments of $350 thousand. The ratio of allowance for credit losses on loans to total loans was 1.01% and 0.99% as of June 30, 2026 and June 30, 2025, respectively. The allowance for credit losses on loans was $54.1 million as of June 30, 2026, compared to $51.3 million as of June 30, 2025. Nonperforming loans (NPLs) were $21.8 million as of June 30, 2026, compared to $17.9 million as of June 30, 2025. NPLs were 0.40% and 0.35% of total loans as of June 30, 2026 and June 30, 2025, respectively. The coverage ratio, or allowance for credit losses on loans to NPLs, was 248.6% as of June 30, 2026, compared to 286.2% as of June 30, 2025. Nonperforming assets (NPAs) were $23.0 million as of June 30, 2026, compared to $19.0 million as of June 30, 2025. While NPLs increased modestly during the quarter, asset quality metrics remain stable and well covered by reserves, reflecting the Bank’s conservative underwriting standards.
 
A conference call to discuss second quarter 2026 results will be held at 9:00 a.m. Eastern Time on July 22, 2026.  Those wishing to participate in the call may dial toll-free for North America 1-833-461-5787, Meeting ID 562 250 806.  The call will also be audio webcast at https://events.q4inc.com/attendee/562250806. The webcast replay will be available for one year at the same link. 
 
About TrustCo Bank Corp NY
 
TrustCo Bank Corp NY is a $6.5 billion savings and loan holding company and through its subsidiary, Trustco Bank, operated 132 offices in New York, New Jersey, Vermont, Massachusetts, and Florida as of June 30, 2026.
 
In addition, the Bank’s Wealth Management Department offers a full range of investment services, retirement planning and trust and estate administration services. The common shares of TrustCo are traded on the NASDAQ Global Select Market under the symbol TRST.
 
Page | 3
 
Forward-Looking Statements
 
All statements in this news release and the related earnings call that are not historical are forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as "anticipate," "intend," "plan," "goal," "seek," "believe," "project," "estimate," "expect," "strategy," "future," "likely," "may," "should," "will" and similar references to future development, results or periods. Examples of forward-looking statements include, among others, statements we make regarding our expectations for our future performance, including our expectations regarding net income, net interest income and shareholder value for future quarters; the anticipated impact of our focus on underwriting within our loan portfolio and conservative lending standards; the expected impact of the continued repricing of our loan and investment portfolios, as well as our liquidity position, on our future net interest income and overall asset yields; the amount of shares that we expect to repurchase in 2026; and the anticipated effects of our capital management strategy, including our stock repurchase program. Forward-looking statements are based on management’s current expectations, as well as certain assumptions and estimates made by, and information available to, management at the time the statements are made. Such forward-looking statements are subject to factors and uncertainties that could cause TrustCo’s actual results to differ materially from the views, beliefs and projections expressed in such statements. TrustCo wishes to caution readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. The following important factors, among others, in some cases have affected and in the future could affect TrustCo’s actual results and could cause TrustCo’s actual financial performance to differ materially from that expressed in any forward-looking statement: future changes in interest rates; external economic factors, such as changes in monetary policy, ongoing inflationary pressures and continued elevated prices; exposure to credit risk in our lending activities; the risk of weakness in residential real estate markets; our increasing commercial loan portfolio; the sufficiency of our allowance for credit losses on loans to cover actual loan losses; our ability to meet the cash flow requirements of our depositors or borrowers or to meet our operating cash needs to fund corporate expansion and other activities; claims and litigation pertaining to fiduciary responsibility and lender liability; the enforcement of federal cannabis laws and regulations and its impact on our ability to provide services in the cannabis industry; our dependency upon the services of the management team; our disclosure controls and procedures’ ability to prevent or detect errors or acts of fraud; the adequacy of our business continuity and disaster recovery plans; the effectiveness of our risk management framework; the impact of any expansion by us into new lines of business or new products and services; the rising popularity of alternative financial products, including fintech platforms, cryptocurrencies, money market funds, and digital wallets; an increase in the prevalence of fraud and other financial crimes; the impact of severe weather events and climate change on us and the communities we serve, including societal responses to climate change; environmental, social and governance risks and their impact on our reputation and relationships; the chance of a prolonged economic downturn, especially one affecting our geographic market area; instability in global economic conditions and geopolitical matters, including as a result of the conflict between the United States (U.S.) and Iran, as well as volatility in financial markets; the chance of a downgrade in the credit rating of the U.S. government or a default by the U.S. government; the soundness of other financial institutions; U.S. government shutdowns; fluctuations in the trust wealth management fees we receive as a result of investment performance; the impact of regulatory capital rules on our growth; changes in laws and regulations, including changes in cybersecurity or privacy regulations; our compliance with laws designed to protect consumers, including the Community Reinvestment Act and fair lending laws; restrictions on data collection and use; our compliance with the USA PATRIOT Act, Bank Secrecy Act, and other laws and regulations that could result in material fines or sanctions; changes in tax laws; limitations on our ability to pay dividends; TrustCo Realty Corp.’s ability to qualify as a real estate investment trust; changes in accounting standards; competition within our market areas; consumers and businesses’ use of non-banks to complete financial transactions; our reliance on third-party service providers; the impact of data breaches and cyber-attacks; the development and use of artificial intelligence; the impact of a failure in or breach of our operational or security systems or infrastructure, or those of third parties; the impact of an unauthorized disclosure of sensitive or confidential client or customer information; the impact of interruptions in the effective operation of our computer systems; the impact of anti-takeover provisions in our organizational documents; the impact of the manner in which we allocate capital; the impact of the actions of activist shareholders; and other risks and uncertainties set forth in our public filings made with the Securities and Exchange Commission (the “SEC”), including our Annual Report on Form 10-K for the year ended December 31, 2025, our Quarterly Report on Form 10-Q for the first quarter of 2026, our upcoming quarterly report on Form 10-Q for the second quarter of 2026, and future reports to be filed with the SEC. The forward-looking statements contained in this news release represent TrustCo management’s judgment as of the date of this news release. TrustCo disclaims, however, any intent or obligation to update forward-looking statements, either as a result of future developments, new information or otherwise, except as may be required by law.
 
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TRUSTCO BANK CORP NY
GLENVILLE, NY
 
FINANCIAL HIGHLIGHTS
 
(dollars in thousands, except per share data)
(Unaudited)
                   
 
Three months ended  
    6/30/2026     3/31/2026     6/30/2025  
Summary of operations
                 
Net interest income
 $45,590    $44,708    $41,746  
Provision for credit losses
  650     950     650  
Net gains on equity securities
  844      -      -  
Noninterest income, excluding net gains on equity securities
  5,068     4,841     4,852  
Noninterest expense
  28,333     26,982     26,223  
Net income
  16,965     16,285     15,039  
                   
Per share
                 
Net income per share:
                 
- Basic
 $0.98    $0.91    $0.79  
- Diluted
  0.98     0.91     0.79  
Cash dividends
  0.38     0.38     0.36  
Book value at period end
  38.53     38.32     36.75  
Market price at period end
  54.91     43.78     33.42  
                   
At period end
                 
Full time equivalent employees
  742     740     733  
Full service banking offices
  132     133     136  
                   
Performance ratios
                 
Return on average assets
  1.04 %   1.02 %   0.96 %
Return on average equity
  10.22     9.66     8.73  
Efficiency ratio (GAAP)
  55.01     54.46     56.27  
Adjusted Efficiency ratio (1)
  55.71     54.35     55.15  
Net interest spread
  2.48     2.44     2.28  
Net interest margin
  2.87     2.84     2.71  
Dividend payout ratio
  38.36     41.40     45.27  
                   
Capital ratios at period end
                 
Consolidated equity to assets (GAAP)
  10.05 %   10.31 %   10.91 %
Consolidated tangible equity to tangible assets (1)
  10.05 %   10.30 %   10.91 %
                   
Asset quality analysis at period end
                 
Nonperforming loans to total loans
  0.40 %   0.41 %   0.35 %
Nonperforming assets to total assets
  0.35     0.35     0.30  
Allowance for credit losses on loans to total loans
  1.01     1.00     0.99  
Coverage ratio (2)
  2.5 x   2.5 x   2.9 x
 
(1) Non-GAAP Financial Measure, see Non-GAAP Financial Measures Reconciliation.
(2) Calculated as allowance for credit losses on loans divided by total nonperforming loans.
 
Page | 5
 
FINANCIAL HIGHLIGHTS, Continued
 
(dollars in thousands, except per share data)
(Unaudited)
 
             
 
Six Months Ended  
     06/30/26      06/30/25  
Summary of operations
           
Net interest income
 $90,298    $82,119  
Provision for credit losses
  1,600     950  
Net gains on equity securities
  844      -    
Noninterest income, excluding net gains on equity securities
  9,909     9,826  
Noninterest expense
  55,315     52,552  
Net income
  33,250     29,314  
             
Per share
           
Net income per share:
           
- Basic
 $1.89    $1.54  
- Diluted
  1.89     1.54  
Cash dividends
  0.76     0.72  
Book value at period end
  38.53     36.75  
Market price at period end
  54.91     33.42  
             
Performance ratios
           
Return on average assets
  1.03 %   0.94 %
Return on average equity
  9.94     8.61  
Efficiency ratio (GAAP)
  54.74     57.16  
Adjusted Efficiency ratio (1)
  55.04     56.56  
Net interest spread
  2.47     2.24  
Net interest margin
  2.86     2.68  
Dividend payout ratio
  39.85     46.58  
 
(1) Non-GAAP Financial Measure, see Non-GAAP Financial Measures Reconciliation.
 
Page | 6
 
CONSOLIDATED STATEMENTS OF INCOME
 
(dollars in thousands, except per share data)
(Unaudited)
 
                          
    Three months ended  
 

6/30/2026   
3/31/2026
  
12/31/2025
  
9/30/2025
  
6/30/2025
 
Interest and dividend income:
                        
Interest and fees on loans
 $58,757   $57,565   $56,886   $55,953   $54,557 
Interest and dividends on securities available for sale:
                        
U. S. government sponsored enterprises
  111    149    350    599    614 
State and political subdivisions      
  -    -    -    1    -  
Mortgage-backed securities and collateralized mortgage obligations - residential
  1,486    1,469    1,490    1,583    1,613 
Corporate bonds
  776    694    536    265    210 
Small Business Administration - guaranteed participation securities
  59    63    68    72    75 
Other securities
  7    8    8    7    8 
Total interest and dividends on securities available for sale
  2,439    2,383    2,452    2,527    2,520 
                          
Interest on held to maturity securities:    
                        
Mortgage-backed securities and collateralized mortgage obligations - residential
  44    47    50    52    54 
Total interest on held to maturity securities
  44    47    50    52    54 
                          
Federal Home Loan Bank stock
  123    126    126    125    129 
                          
Interest on federal funds sold and other short-term investments
  6,344    6,105    6,580    7,376    7,212 
Total interest income
  67,707    66,226    66,094    66,033    64,472 
                          
Interest expense:           
                        
Interest on deposits:          
                        
Interest-bearing checking
  551    533    501    483    536 
Savings
  703    675    715    741    733 
Money market deposit accounts
  1,631    1,552    1,810    2,065    2,086 
Time deposits
  18,863    18,357    18,993    19,427    19,195 
Interest on short-term borrowings
  369    401    340    198    176 
Total interest expense
  22,117    21,518    22,359    22,914    22,726 
                          
Net interest income
  45,590    44,708    43,735    43,119    41,746 
                          
Less: Provision for credit losses
  650    950    400    250    650 
Net interest income after provision for credit losses      
  44,940    43,758    43,335    42,869    41,096 
                          
Noninterest income:
                        
Trustco Financial Services income
  1,980    2,135    1,950    1,967    1,818 
Fees for services to customers
  2,487    2,340    2,192    2,429    2,266 
Net gains on equity securities
  844    -     -    -    -  
Other
  601    366    288    293    768 
Total noninterest income
  5,912    4,841    4,430    4,689    4,852 
                          
Noninterest expenses:
                        
Salaries and employee benefits
  13,047    12,219    12,242    12,727    11,876 
Net occupancy expense
  4,381    4,542    4,592    4,470    4,518 
Equipment expense
  2,082    2,022    2,219    1,938    1,918 
Professional services
  1,968    1,526    1,083    1,571    1,886 
Outsourced services
  2,704    2,700    2,100    2,492    2,460 
Advertising expense
  586    394    629    290    304 
FDIC and other insurance
  1,101    1,153    1,135    1,052    1,136 
Other real estate expense, net
  112    50    161    8    522 
Other
  2,352    2,376    2,549    1,694    1,603 
Total noninterest expenses
  28,333    26,982    26,710    26,242    26,223 
                          
Income before taxes
  22,519    21,617    21,055    21,316    19,725 
Income taxes
  5,554    5,332    5,490    5,058    4,686 
                          
Net income
 $16,965   $16,285   $15,565   $16,258   $15,039 
                          
Net income per common share:         
                        
- Basic
 $0.98   $0.91   $0.85   $0.87   $0.79 
                          
- Diluted
  0.98    0.91    0.85    0.86    0.79 
                          
Weighted average basic shares (in thousands)
  17,304    17,813    18,275    18,755    18,965 
Weighted average diluted shares (in thousands)
  17,386    17,876    18,327    18,805    18,994 
 
Page | 7
 
CONSOLIDATED STATEMENTS OF INCOME, Continued
 
(dollars in thousands, except per share data)
(Unaudited)
 
           
  Six Months Ended
    
06/30/26
   
06/30/25
 
Interest and dividend income:          
         
Interest and fees on loans
 $116,322   $108,007 
Interest and dividends on securities available for sale:          
         
U. S. government sponsored enterprises
  260    1,210 
State and political subdivisions      
  -    -  
Mortgage-backed securities and collateralized mortgage obligations - residential
  2,955    3,096 
Corporate bonds
  1,470    470 
Small Business Administration - guaranteed participation securities
  122    156 
Other securities
  15    15 
Total interest and dividends on securities available for sale
  4,822    4,947 
           
Interest on held to maturity securities:    
         
Mortgage-backed securities-residential
  91    111 
Total interest on held to maturity securities
  91    111 
           
Federal Home Loan Bank stock
  249    280 
           
Interest on federal funds sold and other short-term investments
  12,449    13,944 
Total interest income
  133,933    127,289 
           
Interest expense:           
         
Interest on deposits:          
         
Interest-bearing checking
  1,084    1,094 
Savings
  1,378    1,467 
Money market deposit accounts
  3,183    4,075 
Time deposits
  37,220    38,178 
Interest on short-term borrowings
  770    356 
Total interest expense
  43,635    45,170 
           
Net interest income
  90,298    82,119 
           
Less: Provision for credit losses
  1,600    950 
Net interest income after provision for credit losses      
  88,698    81,169 
           
Noninterest income:
         
Trustco Financial Services income
  4,115    3,938 
Fees for services to customers
  4,827    4,911 
Net gains on equity securities
  844              -  
Other
  967    977 
Total noninterest income
  10,753    9,826 
           
Noninterest expenses:
         
Salaries and employee benefits
  25,266    23,770 
Net occupancy expense
  8,923    9,072 
Equipment expense
  4,104    3,862 
Professional services
  3,494    3,612 
Outsourced services
  5,404    5,160 
Advertising expense
  980    665 
FDIC and other insurance
  2,254    2,324 
Other real estate expense, net
  162    550 
Other
  4,728    3,537 
Total noninterest expenses
  55,315    52,552 
           
Income before taxes
  44,136    38,443 
Income taxes
  10,886    9,129 
           
Net income
 $33,250   $29,314 
           
Net income per common share:         
         
- Basic
 $1.89   $1.54 
           
- Diluted
  1.89    1.54 
           
Weighted average basic shares (in thousands)
  17,557    18,992 
Weighted average diluted shares (in thousands)
  17,630    19,019 
 
Page | 8
 
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
 
(dollars in thousands)
(Unaudited)
 
                     
     6/30/2026      3/31/2026      12/31/2025      9/30/2025      6/30/2025  
ASSETS:
                        
                          
Cash and due from banks
 $44,503   $43,165   $50,569   $42,026   $45,218 
Federal funds sold and other short term investments
  652,136    724,943    679,858    653,530    668,373 
Total cash and cash equivalents
  696,639    768,108    730,427    695,556    713,591 
                          
Securities available for sale:
                        
U. S. government sponsored enterprises
  14,956    14,887    31,772    51,557    71,241 
States and political subdivisions
  9    9    9    18    18 
Mortgage-backed securities and collateralized mortgage obligations - residential
  203,601    205,209    206,290    215,466    221,721 
Small Business Administration - guaranteed participation securities
  10,153    10,796    11,710    12,330    12,945 
Corporate bonds
  73,804    69,137    59,932    39,800    29,943 
Other securities
  718    708    705    701    698 
Total securities available for sale
  303,241    300,746    310,418    319,872    336,566 
                          
Held to maturity securities:
                        
Mortgage-backed securities and collateralized mortgage obligations-residential
  3,842    4,097    4,339    4,593    4,836 
Total held to maturity securities
  3,842    4,097    4,339    4,593    4,836 
                          
Federal Reserve Bank and Federal Home Loan Bank stock
  6,756    6,601    6,601    6,601    6,601 
                          
Loans:
                        
Commercial
  322,439    316,763    313,443    311,491    314,273 
Residential mortgage loans
  4,560,717    4,497,911    4,463,260    4,420,813    4,394,317 
Home equity line of credit
  484,197    464,887    464,201    447,235    435,433 
Installment loans
  9,882    10,617    11,556    12,231    12,678 
Loans, net of deferred net costs
  5,377,235    5,290,178    5,252,460    5,191,770    5,156,701 
                          
Less: Allowance for credit losses on loans
  54,082    52,994    52,205    51,891    51,265 
Net loans
  5,323,153    5,237,184    5,200,255    5,139,879    5,105,436 
                          
Bank premises and equipment, net
  42,273    41,071    40,707    39,718    38,129 
Operating lease right-of-use assets
  33,872    33,305    33,638    35,291    36,322 
Other assets
  115,137    116,767    114,315    107,514    106,894 
                          
Total assets
 $6,524,913   $6,507,879   $6,440,700   $6,349,024   $6,348,375 
                          
LIABILITIES:
                        
Deposits:
                        
Demand
 $824,717   $811,637   $814,908   $795,508   $784,351 
Interest-bearing checking
  1,089,746    1,078,520    1,077,141    1,025,582    1,045,043 
Savings accounts
  1,076,934    1,070,319    1,069,564    1,063,763    1,082,489 
Money market deposit accounts
  438,799    442,760    457,389    455,488    467,087 
Time deposits
  2,251,370    2,249,117    2,138,415    2,140,932    2,111,344 
Total deposits
  5,681,566    5,652,353    5,557,417    5,481,273    5,490,314 
                          
Short-term borrowings
  108,382    112,930    120,054    97,749    82,370 
Operating lease liabilities
  36,361    35,920    36,391    38,180    39,350 
Accrued expenses and other liabilities
  42,595    35,756    40,249    39,809    43,536 
                          
Total liabilities
  5,868,904    5,836,959    5,754,111    5,657,011    5,655,570 
                          
SHAREHOLDERS' EQUITY:
                        
Capital stock
  20,119    20,119    20,119    20,103    20,097 
Surplus
  261,283    260,808    260,333    259,980    259,490 
Undivided profits
  499,997    489,540    479,996    471,314    462,158 
Accumulated other comprehensive income, net of tax
  6,967    8,241    10,024    2,955    1,663 
Treasury stock at cost
  (132,357)    (107,788)    (83,883)    (62,339)    (50,603) 
                          
Total shareholders' equity
  656,009    670,920    686,589    692,013    692,805 
                          
Total liabilities and shareholders' equity
 $6,524,913   $6,507,879   $6,440,700   $6,349,024   $6,348,375 
                          
Outstanding shares (in thousands)
  17,028    17,507    18,029    18,554    18,851 
 
Page | 9
 
NONPERFORMING ASSETS
 
(dollars in thousands)
(Unaudited)
 
                     
     6/30/2026      3/31/2026      12/31/2025      9/30/2025      6/30/2025  
Nonperforming Assets
                        
                          
New York and other states*
                        
Loans in nonaccrual status:
                        
Commercial
 $1,964   $1,968   $1,990   $292   $684 
Real estate mortgage - 1 to 4 family
  15,343    15,212    14,584    14,568    14,048 
Installment
  37    43    29    30    34 
Total nonperforming loans
  17,344    17,223    16,603    14,890    14,766 
Other real estate owned
  1,234    1,364    1,394    1,234    1,136 
Total nonperforming assets
 $18,578   $18,587   $17,997   $16,124   $15,902 
                          
Florida
                        
Loans in nonaccrual status:
                        
Commercial
 $ -    $ -    $ -    $ -    $ -  
Real estate mortgage - 1 to 4 family
  4,392    4,222    4,047    3,574    3,132 
Installment
  16    20    22    13    12 
Total nonperforming loans
  4,408    4,242    4,069    3,587    3,144 
Other real estate owned
   -      -      -      -      -  
Total nonperforming assets
 $4,408   $4,242   $4,069   $3,587   $3,144 
                          
Total
                        
Loans in nonaccrual status:
                        
Commercial
 $1,964   $1,968   $1,990   $292   $684 
Real estate mortgage - 1 to 4 family
  19,735    19,434    18,631    18,142    17,180 
Installment
  53    63    51    43    46 
Total nonperforming loans
  21,752    21,465    20,672    18,477    17,910 
Other real estate owned
  1,234    1,364    1,394    1,234    1,136 
Total nonperforming assets
 $22,986   $22,829   $22,066   $19,711   $19,046 
                          
Quarterly Net (Recoveries) Chargeoffs
                        
                          
New York and other states*
                        
Commercial
 $ -    $19   $ -    $ -    $ -  
Real estate mortgage - 1 to 4 family
  (72)    (43)    (33)    (194)    (121) 
Installment
  (21)    11    (13)    (2)    18 
Total net chargeoffs (recoveries)
 $(93)   $(13)   $(46)   $(196)   $(103) 
                          
Florida
                        
Commercial
 $ -    $(40)   $ -    $ -    $ -  
Real estate mortgage - 1 to 4 family
   -      -      -      -      -  
Installment
  5    14    32    20    94 
Total net (recoveries) chargeoffs
 $5   $(26)   $32   $20   $94 
                          
Total
                        
Commercial
 $ -    $(21)   $ -    $ -    $ -  
Real estate mortgage - 1 to 4 family
  (72)    (43)    (33)    (194)    (121) 
Installment
  (16)    25    19    18    112 
Total net (recoveries) chargeoffs
 $(88)   $(39)   $(14)   $(176)   $(9) 
                          
Asset Quality Ratios
                        
                          
Total nonperforming loans (1)
 $21,752   $21,465   $20,672   $18,477   $17,910 
Total nonperforming assets (1)
  22,986    22,829    22,066    19,711    19,046 
Total net (recoveries) chargeoffs (2)
  (88)    (39)    (14)    (176)    (9) 
                          
Allowance for credit losses on loans (1)
  54,082    52,994    52,205    51,891    51,265 
                          
Nonperforming loans to total loans
  0.40%   0.41%   0.39%   0.36%   0.35%
Nonperforming assets to total assets
  0.35%   0.35%   0.34%   0.31%   0.30%
Allowance for credit losses on loans to total loans
  1.01%   1.00%   0.99%   1.00%   0.99%
Coverage ratio (1)
  248.6%   246.9%   252.5%   280.8%   286.2%
Annualized net (recoveries) chargeoffs to average loans (2)
  (0.01)%   0.00%   0.00%   (0.01)%   0.00%
Allowance for credit losses on loans to annualized net chargeoffs (2)
   N/A      N/A      N/A      N/A      N/A  
 
* Includes New York, New Jersey, Vermont and Massachusetts.
(1)  At period-end
(2)  For the three-month period ended
 
Page | 10
 
DISTRIBUTION OF ASSETS, LIABILITIES AND SHAREHOLDERS' EQUITY -
INTEREST RATES AND INTEREST DIFFERENTIAL
 
                         
(dollars in thousands)
                                 
(Unaudited)
Three months ended  
Three months ended  
  June 30, 2026  
June 30, 2025  
     Average      Interest      Average      Average      Interest      Average  
     Balance            Rate      Balance            Rate  
Assets
                                 
                                   
Securities available for sale:
                                 
U. S. government sponsored enterprises
 $14,980    $111    2.97 %  $73,468    $614    3.34 %
Mortgage backed securities and collateralized mortgage obligations - residential
  220,507     1,486    2.68     244,628     1,613    2.62  
State and political subdivisions
  9     0    6.77     18     0    6.77  
Corporate bonds
  71,842     776    4.32     25,707     210    3.26  
Small Business Administration - guaranteed participation securities
  11,130     59    2.13     14,083     75    2.14  
Other
  711     7    3.94     697     8    4.59  
                                   
Total securities available for sale
  319,179     2,439    3.06     358,601     2,520    2.81  
                                   
Federal funds sold and other short-term Investments
  687,216     6,344    3.70     648,457     7,212    4.46  
                                   
Held to maturity securities:
                                 
Mortgage backed securities and collateralized mortgage obligations - residential
  3,964     44    4.47     4,970     54    4.37  
                                   
Total held to maturity securities
  3,964     44    4.47     4,970     54    4.37  
                                   
Federal Home Loan Bank stock
  6,753     123    7.29     6,591     129    7.83  
                                   
Commercial loans
  319,748     4,505    5.64     306,373     4,261    5.56  
Residential mortgage loans
  4,529,147     46,665    4.12     4,387,181     43,236    3.94  
Home equity lines of credit
  473,705     7,385    6.25     428,933     6,830    6.39  
Installment loans
  9,864     202    8.19     12,523     230    7.35  
                                   
Loans, net of unearned income
  5,332,464     58,757    4.41     5,135,010     54,557    4.25  
                                   
Total interest earning assets
  6,349,576    $67,707    4.27     6,153,629    $64,472    4.19  
                                   
Allowance for credit losses on loans
  (53,380 )               (50,777 )            
Cash & non-interest earning assets
  220,854                204,006             
                                   
                                   
Total assets
 $6,517,050               $6,306,858             
                                   
                                   
Liabilities and shareholders' equity
                                 
                                   
Deposits:
                                 
Interest bearing checking accounts
 $1,085,204    $551    0.20 %  $1,039,242    $536    0.21 %
Money market accounts
  442,104     1,631    1.48     470,824     2,086    1.78  
Savings
  1,073,370     703    0.26     1,087,467     733    0.27  
Time deposits
  2,252,095     18,863    3.36     2,085,329     19,195    3.69  
                                   
Total interest bearing deposits
  4,852,773     21,748    1.80     4,682,862     22,550    1.93  
Short-term borrowings
  108,910     369    1.36     81,055     176    0.87  
                                   
Total interest bearing liabilities
  4,961,683    $22,117    1.79     4,763,917    $22,726    1.91  
                                   
Demand deposits
  816,688                777,956             
Other liabilities
  72,604                73,903             
Shareholders' equity
  666,075                691,082             
                                   
Total liabilities and shareholders' equity
 $6,517,050               $6,306,858             
                                   
Net interest income
       $45,590               $41,746       
                                   
Net interest spread
             2.48 %              2.28 %
                                   
Net interest margin (net interest income to total interest earning assets)
             2.87 %              2.71 %
 
Page | 11
 
DISTRIBUTION OF ASSETS, LIABILITIES AND SHAREHOLDERS' EQUITY -
INTEREST RATES AND INTEREST DIFFERENTIAL, Continued
 
(dollars in thousands)
                             
(Unaudited)
Six Months Ended Six Months Ended
  June 30, 2026 June 30, 2025
     Average      Interest      Average      Average      Interest      Average  
     Balance           Rate      Balance           Rate  
Assets
                             
                               
Securities available for sale:
                             
U. S. government sponsored enterprises
$21,088   260   2.47% $74,071   1,210   3.27%
Mortgage backed securities and collateralized mortgage obligations - residential
  220,568    2,955    2.68    242,083    3,096    2.56 
State and political subdivisions
  9     -     6.77    18    0    6.77 
Corporate bonds
  67,708    1,470    4.34    32,823    470    2.86 
Small Business Administration - guaranteed participation securities
  11,433    122    2.14    14,540    156    2.15 
Other
  710    15    4.23    698    15    4.30 
                               
Total securities available for sale
  321,516    4,822    3.00    364,233    4,947    2.72 
                               
Federal funds sold and other short-term Investments
  678,636    12,449    3.70    631,148    13,944    4.46 
                               
Held to maturity securities:
                             
Mortgage backed securities and collateralized mortgage obligations - residential
  4,089    91    4.48    5,101    111    4.35 
                               
Total held to maturity securities
  4,089    91    4.48    5,101    111    4.35 
                               
Federal Home Loan Bank stock
  6,677    249    7.46    6,549    280    8.55 
                               
Commercial loans
  317,420    8,911    5.61    302,173    8,426    5.58 
Residential mortgage loans
  4,504,163    92,431    4.11    4,386,418    85,851    3.92 
Home equity lines of credit
  469,267    14,558    6.26    421,498    13,265    6.35 
Installment loans
  10,300    422    8.26    12,744    465    7.36 
                               
Loans, net of unearned income
  5,301,150    116,322    4.40    5,122,833    108,007    4.22 
                               
Total interest earning assets
  6,312,068    133,933    4.25    6,129,864    127,289    4.16 
                               
Allowance for credit losses on loans
  (52,983)              (50,627)           
Cash & non-interest earning assets
  221,773              202,590           
                               
                               
Total assets
 $6,480,858             $6,281,827           
                               
                               
Liabilities and shareholders' equity
                             
                               
Deposits:
                             
Interest bearing checking accounts
 $1,072,787    1,084    0.20%  $1,038,733    1,094    0.21%
Money market accounts
  446,303    3,183    1.44    469,952    4,075    1.75 
Savings
  1,070,121    1,378    0.26    1,088,408    1,467    0.27 
Time deposits
  2,222,120    37,220    3.38    2,069,998    38,178    3.72 
                               
Total interest bearing deposits
  4,811,331    42,865    1.80    4,667,091    44,814    1.94 
Short-term borrowings
  112,672    770    1.38    82,125    356    0.87 
                               
Total interest bearing liabilities
  4,924,003    43,635    1.79    4,749,216    45,170    1.92 
                               
Demand deposits
  809,007              769,923           
Other liabilities
  73,151              76,308           
Shareholders' equity
  674,697              686,380           
                               
Total liabilities and shareholders' equity
 $6,480,858             $6,281,827           
                               
Net interest income
       90,298              82,119      
                               
Net interest spread
            2.47%             2.24%
                               
                               
Net interest margin (net interest income to total interest earning assets)
            2.86%             2.68%
 
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Non-GAAP Financial Measures Reconciliation
 
Tangible equity as a percentage of tangible assets at period end is a non-GAAP financial measure derived from GAAP-based amounts. We calculate tangible equity and tangible assets by excluding the balance of intangible assets from total shareholders’ equity and total assets, respectively. We calculate tangible equity as a percentage of tangible assets at period end by dividing tangible equity by tangible assets at period end. We believe that this is consistent with the treatment by bank regulatory agencies, which exclude intangible assets from the calculation of risk-based capital ratios.  Additionally, we believe that this measure is important to many investors in the marketplace who are interested in relative changes from period to period in equity and total assets, each exclusive of changes in intangible assets.
 
Adjusted efficiency ratio is a non-GAAP measure of expense control relative to revenue from net interest income and non-interest fee income.  We calculate the efficiency ratio by dividing total non-interest expense as determined under GAAP by the sum of net interest income and total non-interest income as determined under GAAP.  We calculate the adjusted efficiency ratio by dividing total non-interest expenses as determined under GAAP, excluding other real estate expense, net, by the sum of net interest income and total non-interest income as determined under GAAP, excluding net gains on equity securities. We believe that this provides a reasonable measure of primary banking expenses relative to primary banking revenue.  Additionally, we believe this measure is important to investors looking for a measure of efficiency in our productivity measured by the amount of revenue generated for each dollar spent.
 
We believe that these non-GAAP financial measures provide information that is important to investors and that is useful in understanding our financial results. Our management internally assesses our performance based, in part, on these measures.  However, these non-GAAP financial measures are supplemental and not a substitute for an analysis based on GAAP measures. As other companies may use different calculations for these measures, this presentation may not be comparable to other similarly titled measures reported by other companies. A reconciliation of the non-GAAP measures of tangible equity as a percentage of tangible assets, and adjusted efficiency ratio to the most directly comparable GAAP measures is set forth below.  
 
NON-GAAP FINANCIAL MEASURES RECONCILIATION
             
                 
(dollars in thousands)
               
(Unaudited)
               
     6/30/2026      3/31/2026      6/30/2025  
Tangible Equity to Tangible Assets
               
                 
Equity (GAAP)
 $656,009   $670,920   $692,805  
Less: Intangible assets
  553    553    553  
Tangible equity (Non-GAAP)
 $655,456   $670,367   $692,252  
                 
Total Assets (GAAP)
 $6,524,913   $6,507,879   $6,348,375  
Less: Intangible assets
  553    553    553  
Tangible assets (Non-GAAP)
 $6,524,360   $6,507,326   $6,347,822  
                 
Consolidated Equity to Assets (GAAP)
  10.05%   10.31%   10.91 %
Consolidated Tangible Equity to Tangible Assets (Non-GAAP)
  10.05%   10.30%   10.91 %
 
                      
      Three months ended     Six Months Ended  
Efficiency and Adjusted Efficiency Ratios
     6/30/2026      3/31/2026      6/30/2025      6/30/2026      6/30/2025  
                            
Net interest income (GAAP)
A  $45,590   $44,708   $41,746   $90,298   $82,119 
Non-interest income (GAAP)
B   5,912    4,841    4,852    10,753    9,826 
Less:  Net gains on equity securities
C   844     -      -     844     -  
Revenue used for efficiency ratio (Non-GAAP)
D  $50,658   $49,549   $46,598   $100,207   $91,945 
                            
Total noninterest expense (GAAP)
E  $28,333   $26,982   $26,223   $55,315   $52,552 
Less:  Other real estate expense, net
F   112    50    522    162    550 
Expense used for efficiency ratio (Non-GAAP)
G  $28,221   $26,932   $25,701   $55,153   $52,002 
                            
Efficiency Ratio (GAAP)
E/(A+B)   55.01%   54.46%   56.27%   54.74%   57.16%
Adjusted Efficiency Ratio (Non-GAAP)
G/D   55.71%   54.35%   55.15%   55.04%   56.56%
 
 
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