[Management View]
TrustCo Bank Corp NY reported substantial gains in net income and net interest income, supported by strong asset quality metrics and steady growth across residential and commercial lending segments. Management completed nearly half of a 1-million-share repurchase plan, citing perceived undervaluation. Margin and efficiency improvements coincided with disciplined cost management and broad deposit growth. The wealth management division's non-interest income, representing nearly 42% of the total, was fueled by $1.25 billion in assets under management.

[Outlook]
Management anticipates additional share buybacks upon exhausting the current authorization, describing an ongoing focus on long-term shareholder value. CD repricing is expected in the upcoming quarters as $1 billion at a 3.75% average rate matures over the next four to six months, with new issues offered up to 4%. Loan growth was achieved without increasing credit risk, as evidenced by net charge-off recoveries and rising coverage ratios.

[Financial Performance]
TrustCo Bank Corp NY saw strong financial results for Q3 2025, marked by increases in both net income and net interest income compared to Q3 2024. Net income was $16.3 million, up 26.3% YoY. Return on average assets was 1.02%, up 21.4% YoY, and return on average equity was 9.29%, up 20% YoY. The efficiency ratio decreased nearly 9% YoY. Book value per share increased 6% to $37.30. Nonperforming loans declined to $18.5 million from $19.4 million a year ago. Average loans rose 2.5% to $5.2 billion. Home equity loans increased by 15.7% YoY to $59.9 million. Residential mortgage loans and commercial loans also saw significant growth. Total deposits ended at $5.5 billion, up $217 million YoY. Net interest income was $43.1 million, up 11.5% YoY. Net interest margin was 2.79%, up 18 basis points YoY.

[Q&A Highlights]
Question 1: Good morning, Robert and team. Congratulations on the great financial results. I was hoping maybe you could quantify a little bit. The release mentions that you expect meaningful net interest income upside for quarters to come. You mentioned the rates on the fixed rate and home equity. What about the CDs that are going to be maturing over the next quarter? What's sort of the average rate for that compared to what you're paying on new CDs that you're issuing?
Answer: The highest rate we're offering right now, Ian, is 4%, and that's a three-month rate. And there's about a billion dollars in CDs that are coming due over the next four to six months. So we expect, based on what happens with the Fed and some competition, there should be opportunity in that CD portfolio to reprice.

Question 2: What's roughly the average, so for the billion coming due, what is the average roughly rate on those?
Answer: The average rate on the billion coming due is about 3.75%. Okay. And then on the recoveries, obviously, very impressive. I was just hoping you could unpack that a little bit. For example, for the quarter, in New York, you had $194,000 in recoveries. Just curious, like how many homes typically would that relate to? Is this just a function of borrowers defaulting with significant equity still in the home? Maybe you can just explain a little bit.
Answer: A lot of that, as you can imagine, Ian, in the real estate market, Upstate is still very, very strong, and there's still great demand with relatively limited inventory. So a lot of the transactions happened before we even end up taking the property back, which is the best possible scenario. But the $194,000 is probably around five properties we've taken back, and I think there was one commercial property in there and four residentials.

Question 3: Okay, great. And then I guess my only follow-up, my only remaining question. So it looked like branches were flat at 136 sequentially. What are you thinking about in terms of expansion, if at all, and would Florida still be sort of your targeted range for growth?
Answer: We're looking at, well, Pasco County is something that we're very interested in, Ian. I'm sure you're tracking this, but on the West Coast of Florida, because of development and prices and things like that, people are being pushed further and further out from Tampa. We're seeing opportunity in loan demand in Pasco County. And then there are a couple of other infill locations that we would like to find something in Florida. But, you know, we are pretty cheap people, so we want the right transaction if we can in the right location. So and then there's always opportunity throughout Downstate New York as things open up there as well. So those would be the two opportunities we're seeing right now.

[Sentiment Analysis]
The tone of the analysts was positive, with congratulations on the strong financial results. Management's responses were confident and detailed, indicating a strong outlook and strategic focus on growth and shareholder value.

[Quarterly Comparison]
| Metric | Q3 2025 | Q3 2024 | YoY Change |
|-------------------------------|---------------|---------------|--------------|
| Net Income | $16.3 million | $12.9 million | +26.3% |
| Return on Average Assets | 1.02% | 0.84% | +21.4% |
| Return on Average Equity | 9.29% | 7.74% | +20% |
| Efficiency Ratio | - | - | -9% |
| Book Value Per Share | $37.30 | $35.19 | +6% |
| Nonperforming Loans | $18.5 million | $19.4 million | -4.6% |
| Average Loans | $5.2 billion | $5.07 billion | +2.5% |
| Home Equity Loans | $59.9 million | $51.8 million | +15.7% |
| Total Deposits | $5.5 billion | $5.28 billion | +4.1% |
| Net Interest Income | $43.1 million | $38.7 million | +11.5% |
| Net Interest Margin | 2.79% | 2.61% | +18 bps |

[Risks and Concerns]
Potential risks include the impact of Federal Reserve rate changes on net interest income and margin, competitive pressures in the CD market, and the ability to maintain credit quality amidst loan growth. Additionally, the expansion plans in Florida and Downstate New York may face challenges related to market conditions and finding suitable locations.

[Final Takeaway]
TrustCo Bank Corp NY demonstrated strong financial performance in Q3 2025, with significant growth in net income, net interest income, and loan portfolios. The management's strategic focus on share repurchase and maintaining high credit quality has positioned the bank for continued success. The positive sentiment from analysts and detailed responses from management indicate confidence in future growth and shareholder value enhancement. Investors should monitor the upcoming CD repricing and expansion plans in Florida and Downstate New York as key factors influencing future performance.