TrustCo (TRST) Q1 2026 Earnings Call Transcript

Motley Fool Transcribing, The Motley Fool

Wed, April 22, 2026 astatine 11:25 AM CDT 13 min read

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Wednesday, April 22, 2026 astatine 9 a.m. ET

• President — Robert McCormick

• Chief Financial Officer — Michael Ozimek

• Chief Banking Officer — Kevin Curley

Robert McCormick: Good morning, everyone, and convey you for joining the call. I'm Rob McCormick, the President of TrustCo Bank Corp. I'm joined today, arsenic usual, by Mike Ozimek, our CFO, who volition spell done the numbers; and Kevin Curley, our Chief Banking Officer, who volition speech astir lending. We're pleased to study that 2026 is disconnected to a large commencement with nett income of implicit $16 million, improving margin, affirmative instrumentality metrics and gathering momentum successful our stock buyback program. Net income improved successful portion due to the fact that of strategical pricing of our clip deposit products, which had the effect of reducing our outgo of funds.

Also, contributing to this maturation was noninterest income generated by our wealthiness absorption department, which accrued 9% quarter-over-quarter. The astir meaningful portion of the communicative and a substance of important shareholder involvement is that the indebtedness portfolio is, arsenic expected, repricing arsenic loans booked astatine little rates implicit the past fewer years are replaced by higher earning loans. As the indebtedness portfolio reaches different all-time precocious this quarter, the affirmative effect of repricing is becoming much pronounced and is having a meaningful interaction connected our financials. The large results announced yesterday are further bolstered by our banal buyback program.

As investors volition recall, we repurchased 1 cardinal shares during 2025 and person received authorization to bargain different 2 cardinal shares this year. In the archetypal 4th of 2026, we purchased implicit 500,000 shares, putting america connected gait to afloat execute. We proceed to judge that the champion acquisition we tin marque is TrustCo Bank, and we expect that stock repurchase volition stay the centerpiece of our superior deployment strategy. Each of these pieces of our institution strategy implicit the 4th generated important betterment successful our instrumentality metrics, highlighting our profitability, ratio and superior leverage. Year-over-year, we saw instrumentality connected mean assets accrued 10% to 1.02%. Return connected mean equity grew 14% to 9.66%.

Our ratio ratio was little by 6% to 54%. Now Mike volition get into the details. Mike?

Michael Ozimek: Thank you, Rob, and bully morning, everyone. I'll present reappraisal TrustCo's fiscal results for the archetypal 4th '26. As we noted successful the property release, the institution continued to spot beardown fiscal results for the archetypal 4th of 2026, marked by increases successful some nett income and nett involvement income of the slope during the archetypal 4th compared to the archetypal 4th of 2025. This show is underscored by rising nett involvement income, continued borderline enlargement and sustained indebtedness and deposit maturation crossed cardinal portfolios. This resulted successful archetypal 4th nett income of $16.3 million, an summation of 14.1% implicit the anterior twelvemonth quarter, which yielded a instrumentality connected mean assets and mean equity of 1.02% and 9.66%, respectively.