UNITED STATES
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
Commission File Number 0-10592
January 25, 1995 January 17, 1995
Date of Report Date of earliest event reported
TrustCo Bank Corp NY
(Exact name of registrant as specified in its charter)
New York 14-1630287
(State or other jurisdiction of (IRS Employer
incorporation or organization) Identification No.)
192 Erie Boulevard, Schenectady, New York 12305
(Address of principal executive offices)
Registrant's telephone number, including area code: (518) 377-3311
320 State Street, Schenectady, NY 12305
(Former name or former address, if changed since last report)
Item 5. Other Events
On January 17, 1995, TrustCo Bank Corp NY ( TrustCo ) issued
its press release with the year-end December 31, 1994, results.
Attached is a copy of that press release on Exhibit 99(a) and
incorporated herein by this reference.
William F. Terry
Senior Vice President and Secretary
(518) 381-3611
For Immediate Release:
Schenectady, New York -- January 17, 1995
TrustCo today reported record earnings for the fourth quarter and
for the full year 1994. Net income for the year amounted to
$22,888,000, an increase of 13 percent over 1993. As a result,
earnings per share for 1994 were $1.54, compared to $1.37 per
share in 1993. Net income for the fourth quarter of 1994 also
achieved a record level of $6,202,000 or $0.42 per share,
compared to $5,383,000 and $0.36 per share for the comparable
period in 1993. Making the announcement was Robert A. McCormick,
President and Chief Executive Officer.
"As we expected, the entire year of 1994 showed strong
improvements in fundamental core earnings performance at
TrustCo," said Mr. McCormick, "and the earnings momentum of our
record fourth quarter results should continue into 1995.
Throughout 1994, we stressed the importance of increasing our net
interest margins, improving the reserve coverage of our
nonperforming assets, achieving increased efficiencies in our
operations, and expanding our deposit base. In each of these
areas, 1994 was a banner year. Specifically, we have achieved:
An increase in our net interest margin from 4.04% for 1993
to 4.26% for 1994 and a net interest margin for the fourth
quarter 1994 of 4.55%. The fourth quarter net interest margin is
especially important because it's that number that will carry
forward into 1995, and help us to achieve the increase in net
income that our shareholders have come to expect from TrustCo.
A reserve for loan losses that provides us a 14 times
coverage of our non-performing loans at year-end 1994. The
balance of the nonperforming assets has decreased from
approximately $21 million at year end 1993 to $17 million at year
end 1994.
An efficiency ratio for the entire year of 1994 of 41.82%
and for the fourth quarter of 1994 of 42.49%. By any measure,
these ratios of operating efficiencies are world class and an
industry leader.
An increase in our average deposit balances from $1.77
billion in 1993 to $1.81 billion in 1994. This is especially
noteworthy in light of the current industry trend of declines in
bank deposits."
Mr. McCormick also took this opportunity to announce the opening
of TrustCo's newest branch in Hudson Falls, New York, which is
scheduled to open during the first quarter of 1995.
Commenting on the state of banking today, McCormick noted,
"TrustCo has been able to report superior performance for the
last 10 years by steering away from exotic products and services
such as derivative investments, and keeping to core banking
products. At year-end 1994, we had $263 million of extremely
short-term liquidity, which we can redeploy into either
investments or loans and thereby take advantage of the higher
rates that are currently available."
The results announced today by TrustCo represent a return on
average equity of 17%, and mark the achievement of a goal
established by TrustCo over two years ago. "We establish stretch
goals for our company, then put into place all the fundamentals
needed to achieve those goals. The employees of TrustCo
understand that return on equity is the single most important
measurement of our performance and they are totally dedicated to
achieving increases in that ratio."
On average for 1994, TrustCo increased the balance of earning
assets from $1.8 billion in 1993 to $1.9 billion in 1994, with
the majority of the increased balances coming from the loan
portfolio. Taxable equivalent interest income grew by 5%, as a
result of a combination of the increased asset balances and an
increase in the average yield on earning assets to 7.45%.
Interest bearing liabilities increased to $1.7 billion, and
carried an average yield of 3.50%.
TrustCo is a $2 billion bank holding company, and through its
subsidiary bank, Trustco Bank New York, operates 43 bank offices
in Albany, Columbia, Greene, Rensselaer, Saratoga, Schenectady,
Warren and Washington Counties. In addition, the bank operates a
full service Trust Department that has $634 million of assets
under management. The common shares of TrustCo are traded on the
NASDAQ National Market System under the ticker symbol TRST.
FINANCIAL HIGHLIGHTS
(dollars in thousands, except per share data)
Three Months Ended
12/31/94 09/30/94 12/31/93
Summary of Operations
Net interest income (TE) $21,408 $21,232 18,051
Provision for loan losses 1,565 2,778 2,286
Net gain/(loss) from securities transactions (2,526) (2,479) 2,244
Noninterest income 3,336 3,317 3,696
Noninterest expense 10,744 9,599 13,037
Net income 6,202 5,914 5,383
Per Common Share (5)
Net income $0.42 $0.40 $0.36
Cash dividends 0.28 0.25 0.23
Book value at period end 9.53 9.35 8.93
Market price at period end 20.75 21.25 20.68
At period end
Full time equivalent employees 435 415 458
Full service banking offices 43 43 43
Performance ratios
Return on average assets 1.25% 1.17% 1.09%
Return on average equity (1) 17.84% 17.45% 16.49%
Efficiency (2) 42.49% 38.57% 42.86%
Overhead (3) 33.52% 28.97% 31.16%
Net interest spread (TE) 4.23% 4.15% 3.60%
Net interest margin (TE) 4.55% 4.44% 3.90%
Dividend payout ratio 66.05% 63.14% 62.80%
Capital ratios at period end
Total equity to assets 7.05% 6.87% 6.59%
Tier 1 risk adjusted capital 12.08% 12.01% 12.18%
Total risk adjusted capital 13.35% 13.29% 13.45%
Asset quality analysis at period end
Nonperforming loans to total loans 0.24% 0.21% 0.18%
Nonperforming assets to total assets 0.86% 0.87% 1.07%
Allowance for loan losses to total loans 3.37% 3.45% 3.21%
Coverage ratio (4) 14.0 X 16.4 X 18.2 X
(1) Average equity excludes the effect of the market value adjustment for securities
available for sale.
(2) 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).
(3) Calculated as noninterest expense (excluding ORE expense and nonrecurring charges)
less noninterest income (excluding ORE income and net securities transactions)
(4) Calculated as allowance for loan losses divided by total nonperforming loans.
(5) Per share data has been adjusted for the 10% stock dividend effective
October 1, 1994. The 1993 per share data has been adjusted for a 2 for 1
stock split.
TE = Taxable equivalent.
Twelve Months Ended
12/31/94 12/31/93
Summary of Operations
Net interest income (TE) $81,117 $74,049
Provision for loan losses 8,056 11,576
Net gain/(loss) from securities transactions (8,877) 6,239
Noninterest income 13,437 12,937
Noninterest expense 40,560 43,502
Net income 22,888 20,325
Per Common Share (5)
Net income $1.54 $1.37
Cash dividends 0.98 0.80
Book value at period end 9.53 8.93
Market price at period end 20.75 20.68
Performance ratios
Return on average assets 1.15% 1.04%
Return on average equity (1) 17.01% 16.18%
Efficiency (2) 41.82% 44.63%
Overhead (3) 32.18% 34.96%
Net interest spread (TE) 3.95% 3.76%
Net interest margin (TE) 4.26% 4.04%
Dividend payout ratio 63.71% 57.93%
CONSOLIDATED BALANCE SHEETS
(dollars in thousands)
12/31/94 12/31/93
ASSETS
Loans,net $1,113,781 $1,026,561
Trading securities 0 2,106
Securities available for sale 117,458 240,716
Investment securities 347,858 416,806
Federal funds sold 263,000 149,000
----------------------------
Total earning assets 1,842,097 1,835,189
Cash and due from banks 52,479 50,977
Bank premises and equipment 23,877 24,893
Other assets 57,224 60,239
----------------------------
Total assets $1,975,677 $1,971,298
============================
LIABILITIES
Deposits:
Demand $93,496 $96,034
Savings 911,629 970,407
Money Market 92,965 110,630
Certificates of deposit > $100 thou 62,511 42,358
Other time deposits 629,230 574,803
----------------------------
Total deposits 1,789,831 1,794,232
Short-term borrowings 12,713 18,323
Long-term debt 3,550 2,750
Other liabilities 30,300 26,113
----------------------------
Total liabilities 1,836,394 1,841,418
SHAREHOLDERS' EQUITY 139,283 129,880
----------------------------
Total liabilities and
shareholders' equity $1,975,677 $1,971,298
============================
Number of common shares outstanding 14,617,426 13,223,478
CONSOLIDATED STATEMENTS OF INCOME
(dollars in thousands, except per share amounts)
Three Months Ended
12/31/94 09/30/94 12/31/93
Interest income
Loans $25,136 $23,961 $21,565
Investments 7,755 9,838 9,588
Federal funds sold 3,766 2,416 1,348
------------------------------------------
Total interest income 36,657 36,215 32,501
Interest expense
Deposits 15,455 15,164 14,762
Borrowings 166 178 118
------------------------------------------
Total interest expense 15,621 15,342 14,880
------------------------------------------
Net interest income 21,036 20,873 17,621
Provision for loan losses 1,565 2,778 2,286
Net interest income after ------------------------------------------
provision for loan losses 19,471 18,095 15,335
Net gain/(loss) from securities transactions (2,526) (2,479) 2,244
Noninterest income 3,336 3,317 3,696
Noninterest expense 10,744 9,599 13,037
------------------------------------------
Income before income taxes 9,537 9,334 8,238
Income tax expense 3,335 3,420 2,855
------------------------------------------
Net income 6,202 5,914 5,383
==========================================
Net income per share $0.42 $0.40 $0.36
Avg equivalent shares outstanding, in thousands 14,897 14,937 14,875
CONSOLIDATED STATEMENTS OF INCOME
(dollars in thousands, except per share amounts)
Twelve Months Ended
12/31/94 12/31/93
Interest income
Loans $93,873 $86,965
Investments 37,351 41,780
Federal funds sold 9,058 4,912
----------------------------
Total interest income 140,282 133,657
Interest expense
Deposits 60,034 60,882
Borrowings 664 737
----------------------------
Total interest expense 60,698 61,619
----------------------------
Net interest income 79,584 72,038
Provision for loan losses 8,056 11,576
----------------------------
Net interest income after
provision for loan losses 71,528 60,462
Net gain/(loss) from securities transactions (8,877) 6,239
Noninterest income 13,437 12,937
Noninterest expense 40,560 43,502
----------------------------
Income before income taxes 35,528 36,136
Income tax expense 12,640 12,516
----------------------------
Income before cumulative effect
of a change in accounting principle 22,888 23,620
Cumulative effect of chng in acctg principle -- (3,295)
----------------------------
Net income $22,888 $20,325
============================
Net income per share $1.54 $1.37
Avg equivalent shares outstanding, in thousands 14,886 14,803
CONSOLIDATED AVERAGE BALANCE SHEETS
(in thousands)
Three Months Ended
12/31/94 09/30/94 12/31/93
Total assets $1,974,105 $2,011,019 $1,956,736
Shareholders' equity 137,641 134,657 129,513
Interest earning assets 1,884,459 1,916,701 1,855,711
Interest bearing liabilities 1,711,536 1,752,456 1,696,858
CONSOLIDATED AVERAGE BALANCE SHEETS
(in thousands)
Twelve Months Ended
12/31/94 12/31/93
Total assets $1,994,497 $1,946,715
Shareholders' equity 136,977 125,648
Interest earning assets 1,902,686 1,834,851
Interest bearing liabilities 1,735,483 1,696,085
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 25, 1995
TrustCo Bank Corp NY
(Registrant)
By: /s/Robert A. McCormick
Robert A. McCormick
President and Chief Executive Officer