SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): January 18, 2000
(January 18, 2000)
Trustco Bank Corp NY
(Exact name of registrant as specified in its charter)
New York
(State or other jurisdiction of incorporation)
0-10592 14-1630287
(Commission File Number) (IRS Employer Identification No.)
192 Erie Boulevard, Schenectady, New York 12305
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (518) 377-3311
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TrustCo Bank Corp NY
Item 5. Other Events
On January 18, 2000, TrustCo Bank Corp NY ("TrustCo") issued two
press releases with year to date and fourth quarter results for
the period ending December 31, 1999. Attached is a copy of each
press release labeled as Exhibits 99(a) and 99(b).
Item 7 (c) Exhibits
Reg S-K Exhibit No. Description
99(a) Highlights Press Release of January 18, 2000,
for the period ending December 31, 1999,
regarding year to date and fourth quarter
results.
99(b) Press Release of January 18, 2000, for the
period ending December 31, 1999, regarding
year to date and fourth quarter results.
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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.
Dated: January 18, 2000
TrustCo Bank Corp NY
(Registrant)
By:/s/ Robert T. Cushing
Robert T. Cushing
Vice President and
Chief Financial Officer
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Exhibits Index
The following exhibits are filed herewith:
Reg S-K Exhibit No. Description Page
__________________ ____________________________ __________
99(a) Highlights Press Release 5
of January 18, 2000, for the
period ending December 31, 1999,
regarding year to date and fourth
quarter results.
99(b) Press Release of January 18, 6
2000, for the period ending
December 31, 1999, regarding
year to date and fourth quarter
results.
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TRUSTCO Exhibit 99(a)
Bank Corp NY News Release
_______________________________________________________________________________
192 Erie Boulevard, Schenectady, New York, 12305
(518) 377-3311 Fax: (518) 381-3668
William F. Terry
Senior Vice President and Secretary
518-381-3611
FOR IMMEDIATE RELEASE: Schenectady, New York - January 18, 2000
TrustCo Bank Corp NY
(dollars in thousands, except per share data)
12/99 12/98
Three Months Ended December 31:
Net Income $ 9,398 8,762
Provision for Loan Losses 1,050 1,230
Average Equivalent Shares Outstanding:
Basic 53,541,000 53,589,000
Diluted 55,778,000 56,029,000
Net Income per Share:
Basic $ 0.18 0.16
Diluted 0.17 0.16
Twelve Months Ended December 31:
Net Income $ 38,185 35,015
Provision for Loan Losses 5,063 4,610
Average Equivalent Shares Outstanding:
Basic 53,696,000 53,627,000
Diluted 55,910,000 55,907,000
Net Income per Share:
Basic $ 0.71 0.65
Diluted 0.68 0.63
Period End:
Total Assets 2,364,022 2,485,080
Total Nonperforming Loans 9,921 12,383
Total Nonperforming Assets 11,692 17,557
Allowance for Loan Losses 55,820 54,375
Allowance as a Percentage
of Total Loans 4.14% 4.11%
Note: All share and per share information is calculated after to the 2 for 1 stock split declared August, 1999.
# # #
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TRUSTCO Exhibit 99(b)
Bank Corp NY News Release
_______________________________________________________________________________
192 Erie Boulevard, Schenectady, New York, 12305
(518) 377-3311 Fax: (518) 381-3668
William F. Terry
Senior Vice President and Secretary
518-381-3611
TRUSTCO ANNOUNCES FULL YEAR AND FOURTH QUARTER 1999 RESULTS
Schenectady, New York - January 18, 2000
TrustCo Bank Corp NY (TrustCo, NASDAQ: TRST) today announced record results for
1999. Net income for the full year 1999 was $38.2 million, an increase of $3.2
million or 9% over net income of $35.0 million for 1998. Diluted earnings per
share were $0.68 for 1999, an increase of 8%, compared to the $0.63 earnings per
share in 1998. Return on average equity and return on average assets were 22.52%
and 1.58% respectively for 1999 and 21.47% and 1.44% respectively for 1998.
Net income for the fourth quarter of 1999 was $9.4 million, an increase of 7%
from the $8.8 million reported in the fourth quarter 1998. Diluted earnings per
share were $0.17 for the quarter, or 6% greater than the $0.16 per share
reported in 1998's fourth quarter. Return on average equity and return on
average assets for the fourth quarter were 21.92% and 1.58% respectively for
1999, compared to 20.90% and 1.42% respectively for the fourth quarter of 1998.
All per share results for 1999 and 1998 have been adjusted for the two for one
stock split declared in 1999.
Highlights
Robert A. McCormick, TrustCo's President and Chief Executive Officer commented
on the strong results for the quarter and full year 1999. "The results for the
fourth quarter and for all of 1999 are right on target with our plans for the
year and establish a strong foundation to move forward into the year 2000 with
our plans for a return on average equity of 23%. I am very encouraged by these
results as an indication that our banking strategy of delivering high quality
services through our network of community based branches is not only meeting our
customers needs, but also providing the desired financial results for our
shareholders".
"With respect to the Year 2000 computer concerns, I was pleased to see that all
of our planning and testing led to a successful transition of our systems into
the new millennium. We experienced no difficulties with our computer systems,
and have had consistently smooth operations since the century date change. I am
happy to have this project behind us," said Mr. McCormick.
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TrustcoBankUSA.com
Earlier in 1999, TrustCo announced plans to launch a service delivery channel on
the Internet under the banner of "TrustcoBankUSA". Commenting on the plans, Mr.
McCormick stated, "We are on track for our web based service delivery mechanism
to be operational in the first half of 2000. We will principally utilize this
delivery channel for deposit gathering and bill paying functions for new account
relationships that are looking for web only access. TrustCo is dedicated to the
physical network of community based branches that we have developed, but we also
need to recognize the growing element of our customer base that is looking for
service delivery utilizing non-traditional methods. TrustcoBankUSA is our
solution."
TrustcoBankUSA will operate as a division of Trustco Bank, N.A., and offer
deposit accounts and bill payment via Internet access.
Full Year 1999 Results
Net income for 1999 was $38.2 million, an increase of 9% over the net income of
$35.0 million in 1998. The increase in net income combined with TrustCo's
capital management process resulted in a return on average equity for 1999 of
22.52%.
TrustCo's efficiency ratio for 1999 was 38.62% compared to 40.26% in 1998.
Commenting on these results Mr. McCormick noted "The delivery of high quality
banking services at the lowest cost possible is the hallmark of this Company.
Year after year we are rated among the most efficient banks in the country. The
results for 1999 are world class."
During 1999, TrustCo paid 79% of its net income to shareholders in the form of
cash dividends. As Mr. McCormick noted, TrustCo's operating philosophy "is to
return to our owners any excess capital that cannot be effectively utilized by
the Company while at the same time maintaining adequate capital to qualify as a
well capitalized institution for regulatory purposes". Also, during 1999 TrustCo
declared a two for one stock split and increased the annual cash dividend to
$0.60 per share.
Also during 1999, the average total assets balance at TrustCo decreased by $22.0
million to $2.4 billion. Commenting on this Mr. McCormick noted "For 1999 we
developed a plan to eliminate a significant amount of the high cost deposits
that had accumulated in the Bank, while at the same time increasing our overall
net interest margin. We decreased deposits on average by $26 million during 1999
as a result of changing our deposit pricing philosophy, and we increased our net
interest margin by 35 basis points to 4.16% for the year. The increased margin
was especially important because it resulted from 63 basis points reduction in
deposit cost and an increase in the relative balance of our funds invested in
higher yielding investments and loans in 1999 versus 1998." The increase in net
interest margin resulted in an increase in the taxable equivalent net interest
income of $8.1 million for 1999.
Fourth Quarter Results
Net income of $9.4 million for the fourth quarter of 1999 was 7% greater than
the $8.8 million for the same period in 1998. Return on average equity for the
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fourth quarter was 21.92% for 1999 compared to 20.90% for 1998. The efficiency
ratio for the quarter was 37.58% in 1999 and 41.92% in 1998.
During the quarter the provision for loan losses was $1.1 million in 1999
compared to $1.2 million in1998. Securities transactions during the quarter
resulted in losses of $3.2 million in 1999 compared to securities gains of
approximately $700 thousand in 1998. At December 31, 1999, nonperforming assets
had decreased to $11.7 million from $12.2 million at September 30, 1999 and
$17.6 million at December 31, 1998. The allowance for loan losses increased
slightly to $55.8 million at year-end 1999 and represents 4.14% of loans
outstanding.
TrustCo Bank Corp NY is a $2.4 billion bank holding company which serves the
financial needs of customers through its banking subsidiary, Trustco Bank,
National Association. Trustco Bank operates 53 bank offices, in Albany,
Columbia, Greene, Rensselaer, Saratoga, Schenectady, Schoharie, Warren and
Washington Counties. In addition, Trustco Bank operates a full service Trust
Department with $1.37 billion of assets under management.
Except for historical information contained herein, the matters discussed in
this news release and other information contained in TrustCo's Securities and
Exchange Commission filings may express "forward looking statements". Those
"forward looking statements" may involve risk and uncertainties, including
statements concerning future events or performance and assumptions and other
statements that are other than statements of historical facts. TrustCo wishes to
caution readers not to place undue reliance on any forward looking statements,
which speak only as of the date made. Readers are advised that various risk
factors, including but not limited to: (1) credit risk, (2) interest rate risk,
(3) competition, (4) certain vendors critical systems or services failing to
comply with Year 2000 programming issues, (5) changes in the regulatory
environment, and (6) changes in general business and economic trends, could
cause the actual results or circumstances for future periods to differ
materially from those anticipated or projected.
TrustCo does not undertake, and specifically disclaims any obligation, to
publicly release the results of any revisions that may be made to any forward
looking statements to reflect the occurrence of unanticipated events or
circumstances after the date of such statement.
# # #
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TRUSTCO BANK CORP NY
SCHENECTADY, NY
(dollars in thousands, except per share data)
Three Months Ended
12/31/99 09/30/99 12/31/98
Summary of operations
Net interest income (TE) $25,036 24,788 22,197
Provision for loan losses 1,050 1,000 1,230
Net securities transactions (3,216) (1,153) 727
Noninterest income 5,064 5,051 6,779
Noninterest expense 10,581 11,500 14,180
Net income 9,398 9,972 8,762
Per common share (1)
Net income per share:
- Basic 0.18 0.19 0.16
- Diluted 0.17 0.18 0.16
Cash dividends 0.150 0.138 0.138
Book value at period end 3.11 3.21 3.47
Market price at period end 13.25 14.77 15.00
At period end
Full time equivalent employees 455 466 480
Full service banking offices 53 53 53
Performance ratios
Return on average assets 1.58 % 1.64 1.42
Return on average equity (2) 21.92 23.22 20.90
Efficiency (3) 37.58 37.41 41.92
Net interest spread (TE) 3.92 3.78 3.30
Net interest margin (TE) 4.39 4.25 3.79
Dividend payout ratio 85.54 74.17 84.24
Capital ratios at period end (4)
Total equity to assets 7.13 7.09 6.78
Tier 1 risk adjusted capital 13.55 13.27 12.77
Total risk adjusted capital 14.84 14.56 14.06
Asset quality analysis at period end
Nonperforming loans to total loans 0.73 0.74 0.94
Nonperforming assets to total assets 0.49 0.51 0.71
Allowance for loan losses to total loans 4.14 4.17 4.11
Coverage ratio (5) 5.6 X 5.6 X 4.4 X
(1) All share and per share information is adjusted for the 2 for 1 stock split declared August, 1999.
(2) Average equity excludes the effect of the market value adjustment for securities
available for sale.
(3) Calculated as noninterest expense (excluding ORE expense and any nonrecurring
charges) divided by taxable equivalent net interest income plus noninterest
income (excluding ORE income and net securities transactions).
(4) Capital ratios exclude the effect of the market value adustment for securities
available for sale.
(5) Calculated as allowance for loan losses divided by total nonperforming loans.
TE = Taxable equivalent.
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FINANCIAL HIGHLIGHTS, Continued
Twelve Months Ended
12/31/99 12/31/98
Summary of operations
Net interest income (TE) $97,195 89,117
Provision for loan losses 5,063 4,610
Net securities transactions (5,446) 998
Noninterest income 20,862 21,124
Noninterest expense 45,636 48,765
Net income 38,185 35,015
Per common share (1)
Net income per share:
- Basic 0.71 0.65
- Diluted 0.68 0.63
Cash dividends 0.563 0.496
Book value at period end 3.11 3.47
Market price at period end 13.25 15.00
Performance ratios
Return on average assets 1.58 % 1.44
Return on average equity (2) 22.52 21.47
Efficiency (3) 38.62 40.26
Net interest spread (TE) 3.70 3.33
Net interest margin (TE) 4.16 3.81
Dividend payout ratio 79.16 75.97
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CONSOLIDATED BALANCE SHEETS
(dollars in thousands)
12/31/99 12/31/98
ASSETS
Loans, net $1,293,989 1,268,328
Securities available for sale 640,830 717,410
Other short-term investments 9,970 24,979
Federal funds sold 266,000 358,000
---------------------------------------------
Total earning assets 2,210,789 2,368,717
Cash and due from banks 54,542 41,950
Bank premises and equipment 16,209 17,022
Other assets 82,482 57,391
----------------------------------------------
Total assets $2,364,022 2,485,080
====================================================
LIABILITIES
Deposits:
Demand $155,313 154,358
Interest-bearing checking 272,384 266,027
Savings 641,650 660,376
Money Market 58,557 58,061
Certificates of deposit > $100 thou 115,636 139,310
Other time deposits 751,369 829,282
-----------------------------------------------
Total deposits 1,994,909 2,107,414
Short-term borrowings 152,782 147,924
Other liabilities 49,975 43,900
------------------------------------------------
Total liabilities 2,197,666 2,299,238
SHAREHOLDERS' EQUITY 166,356 185,842
------------------------------------------------
Total liabilities and
shareholders' equity $2,364,022 2,485,080
========================================================
Number of common shares
outstanding, in thousands 53,408 53,585
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CONSOLIDATED STATEMENTS OF INCOME
(dollars in thousands, except per share data)
Three Months Ended
12/31/99 09/30/99 12/31/98
Interest income
Loans $27,002 26,706 27,222
Investments 11,147 11,453 10,758
Federal funds sold 3,701 3,932 4,679
---------------------------------------------------------------------------
Total interest income 41,850 42,091 42,659
Interest expense
Deposits 16,319 16,799 19,907
Borrowings 1,571 1,472 1,422
---------------------------------------------------------------------------
Total interest expense 17,890 18,271 21,329
--------------------------------------------------------------------------
Net interest income 23,960 23,820 21,330
Provision for loan losses 1,050 1,000 1,230
--------------------------------------------------------------------------
Net interest income after
provision for loan losses 22,910 22,820 20,100
Net securities transactions (3,216) (1,153) 727
Noninterest income 5,064 5,051 6,779
Noninterest expense 10,581 11,500 14,180
--------------------------------------------------------------------------
Income before income taxes 14,177 15,218 13,426
Income tax expense 4,779 5,246 4,664
--------------------------------------------------------------------------
Net income $9,398 9,972 8,762
==========================================================================
Net income per share:
- Basic $0.18 0.19 0.16
- Diluted 0.17 0.18 0.16
Avg equivalent shares outstanding, in thousands:
- Basic 53,541 53,722 53,589
- Diluted 55,778 55,952 56,029
===========================================================================
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CONSOLIDATED STATEMENTS OF INCOME
(dollars in thousands, except per share data)
Twelve Months Ended
12/31/99 12/31/98
Interest income
Loans $106,734 110,635
Investments 44,440 40,879
Federal funds sold 16,031 22,536
------------------------------------------------
Total interest income 167,205 174,050
Interest expense
Deposits 68,041 81,596
Borrowings 5,972 6,751
--------------------------------------------------
Total interest expense 74,013 88,347
--------------------------------------------------
Net interest income 93,192 85,703
Provision for loan losses 5,063 4,610
--------------------------------------------------
Net interest income after
provision for loan losses 88,129 81,093
Net securities transactions (5,446) 998
Noninterest income 20,862 21,124
Noninterest expense 45,636 48,765
--------------------------------------------------
Income before income taxes 57,909 54,450
Income tax expense 19,724 19,435
--------------------------------------------------
Net income $38,185 35,015
===================================================
Net income per share:
- Basic $0.71 0.65
- Diluted 0.68 0.63
Avg equivalent shares outstanding, in thousands:
- Basic 53,696 53,627
- Diluted 55,910 55,907
====================================================
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CONSOLIDATED AVERAGE BALANCE SHEETS
(in thousands)
Three Months Ended
12/31/99 09/30/99 12/31/98
Total assets $2,362,258 2,407,449 2,450,492
Shareholders' equity 172,636 174,485 186,084
Total loans 1,342,352 1,331,901 1,323,228
Interest earning assets 2,289,312 2,340,493 2,355,604
Interest-bearing liabilities 1,986,938 2,032,121 2,075,911
Twelve Months Ended
12/31/99 12/31/98
Total assets $2,411,195 2,433,238
Shareholders' equity 179,484 180,103
Total loans 1,329,458 1,311,967
Interest earning assets 2,335,682 2,338,838
Interest-bearing liabilities 2,036,442 2,073,276