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
April 25, 1995 April 18, 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 April 18, 1995, TrustCo Bank Corp NY ( TrustCo ) issued
its press release with the quarter-end March 31, 1995, 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 -- April 18, 1995
TrustCo today announced record first quarter earnings. Net
income for the first quarter 1995 was $5,905,000, an increase
of 11.5% over 1994. As a result, earnings per share for 1995
were $0.40, compared to $0.36 per share in 1994. Making the
announcement was Robert A. McCormick, President and Chief
Executive Officer.
Taxable equivalent net interest income, the primary contributor
to improved earnings performance, increased $2.9 million or
15.8% for the first quarter 1995 compared to 1994.
Mr. McCormick noted "while many other financial institutions
are witnessing dramatic reductions in their net interest
margins, TrustCo has attained a net interest margin of 4.49%
during the first quarter. Net interest income is the most
significant element of net income, and when we can increase
the margin, it bodes well for our continued ability to
increase net income in the future." On an annualized basis the
first quarter results represent a return on average equity of
17.11% in 1995, compared to 16.33% in 1994. Commenting on
the increase in the return on average equity, Mr. McCormick
noted "we have stated for a number of years that the most
important measurement ratio for TrustCo is return on equity.
We are striving for an 18% ratio for 1995, and believe that
the first quarter s results are in line with attaining this
level. Few banks in the country can compete with TrustCo in
the sustained levels of returns we provide to our share-
holders."
Commenting on TrustCo's efficiency ratio, Mr. McCormick stated
"effective cost control is a fundamental element in the way
TrustCo operates. This is not a new fad or a slogan of the
month. We truly believe in being the low cost provider of
services in this area. The efficiency ratio is a reasonable
indicator of how well costs are controlled in a banking
franchise, and we are proud of how well our ratio stacks up
against our competitors. For the first quarter our efficiency
ratio was 44.58%, compared to 49.89% for last year."
For the first quarter, TrustCo paid a cash dividend of $0.275
per share to all shareholders. As a percentage of TrustCo's
first quarter net income, this amount represented a dividend
payout ratio of 68.25%, one of the highest in the banking
industry. Commenting on the significant dividends that
TrustCo has historically paid to its shareholders, Mr.
McCormick noted "We've said for years that we will not retain
within TrustCo any capital in excess of that needed to run
the Company. We have demonstrated this philosophy by
increasing our quarterly dividends to shareholders for the
last 18 years. TrustCo qualifies as a well capitalized bank
for regulatory purposes. The amount of capital that we are
retaining within the Company is sufficient to support our
current plans for expansion, and I see no reason to deviate
from the track record that has made us so successful in the
past."
During the first quarter, TrustCo opened two new branches, our
Hudson Falls and Malta Mall locations. The opening of these
branches marks the beginning of TrustCo's branch expansion
program to add between 3 and 5 new branches each year. "The
reception in the Hudson Falls and Malta communities to our
new facilities has been tremendous. We are very pleased with
both of these locations, and plan to continue this type of
successful new branch development in the future. It is
gratifying to see the positive reception TrustCo is receiving
in these new market areas. It's apparent that we have a range
of products and the right pricing that these communities
need" noted Mr. McCormick.
Also, during the first quarter TrustCo increased the reserve
for loan losses to $41.6 million at March 31, 1995, compared
to $36.2 million for the comparable period in 1994. The
provision for loan losses charged to expense during the
quarter was $3.6 million, almost double the expense recorded
in 1994. Beginning January 1, 1995, the Financial Accounting
Standards Board established a new accounting requirement
Statement No. 114 "Accounting by Creditors for Impairment of a
Loan." This new accounting requirement alters the method
banks have of identifying, measuring and reporting
non-performing loans and assets. For TrustCo the new
requirement will have no impact on total non-performing
assets, but will change the distribution of the balances
between non-performing loans and real estate owned. All
balances included in this release have been restated to comply
with this new accounting requirement.
Non-performing assets at March 31, 1995, are $23.2 million, an
increase of $6.4 million from year end 1994. The increase is
the result of two commercial properties which during 1995 have
been identified as non-performing loans. Both of these loans
are well collateralized and losses are not anticipated. Also,
as of March 31, 1995, non-performing loans were $19.2 million,
compared to $11.7 million at year end 1994. The increase in
non-performing loans is attributable to the commercial
properties noted above. As a percentage of loans, TrustCo's
reserve for loan losses was 3.58% at March 31, 1995, compared
to 3.34% at year-end 1994 and 3.27% at March 31, 1994.
TrustCo is a $2 billion bank holding company and through its
subsidiary bank, Trustco Bank, National Association, operates
45 bank offices in Albany, Columbia, Greene, Rensselaer,
Saratoga, Schenectady, Warren and Washington counties. In
addition, the bank operates a full service Trust Department
with $664 million of assets under management. The common
shares of TrustCo are traded on the NASDAQ National Market
System under the ticker symbol TRST.
TRUSTCO BANK CORP NY
Page 1
FINANCIAL HIGHLIGHTS
(dollars in thousands, except per share data)
Three Months Ended
03/31/95 12/31/94 03/31/94
Summary of Operations
Net interest income (TE) $21,343 21,408 18,428
Provision for loan losses 3,573 1,565 1,827
Net gain/(loss) from securities transactions 211 (2,526) (577)
Noninterest income 3,238 3,336 3,891
Noninterest expense 11,751 10,744 11,409
Net income 5,905 6,202 5,296
Per Common Share (5)
Net income 0.40 0.42 0.36
Cash dividends 0.28 0.28 0.23
Book value at period end 9.75 9.53 9.10
Market price at period end 20.75 20.75 17.50
At period end
Full time equivalent employees 439 435 438
Full service banking offices 45 43 43
Performance ratios
Return on average assets 1.21% 1.25 1.08
Return on average equity (1) 17.11 17.84 16.33
Efficiency (2) 44.58 42.49 49.89
Overhead (3) 36.17 33.52 39.32
Net interest spread (TE) 4.09 4.18 3.50
Net interest margin (TE) 4.49 4.53 3.84
Dividend payout ratio 68.25 66.05 62.67
Capital ratios at period end
Total equity to assets 7.14 7.05 6.64
Tier 1 risk adjusted capital 12.33 12.08 11.86
Total risk adjusted capital 13.61 13.35 13.14
Asset quality analysis at period end (6)
Nonperforming loans to total loans 1.65 1.01 1.69
Nonperforming assets to total assets 1.16 0.85 1.03
Allowance for loan losses to total loans 3.58 3.34 3.27
Coverage ratio (4) 2.2 X 3.3 X 1.9 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 any nonrecurring
charges) less noninterest income (excluding ORE income and net securities
transactions) divided by taxable equivalent net interest income.
(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.
(6) All nonperforming loans and assets data has been restated for the adoption
of SFAS No. 114, "Accounting by Creditors for the Impairment of Loans."
TE = Taxable equivalent.
TRUSTCO BANK CORP NY
CONSOLIDATED BALANCE SHEETS Page 2
(dollars in thousands)
03/31/95 12/31/94 03/31/94
ASSETS
Loans,net $1,122,647 1,122,938 1,069,693
Securities available for sale 226,972 117,458 530,873
Investment securities 337,952 347,858 31,566
Federal funds sold 192,000 263,000 250,000
------------------------------------------
Total earning assets 1,879,571 1,851,254 1,882,132
Cash and due from banks 48,289 52,479 48,566
Bank premises and equipment 23,869 23,877 24,904
Other assets 48,533 48,067 45,143
------------------------------------------
Total assets $2,000,262 1,975,677 2,000,745
==========================================
LIABILITIES
Deposits:
Demand $98,785 93,496 92,703
Savings 821,954 911,629 995,765
Money Market 84,082 92,965 109,231
Certificates of deposit > $100 thou 79,028 62,511 45,340
Other time deposits 732,225 629,230 575,217
------------------------------------------
Total deposits 1,816,074 1,789,831 1,818,256
Short-term borrowings 14,029 12,713 18,464
Long-term debt 0 3,550 2,750
Other liabilities 27,316 30,300 28,355
------------------------------------------
Total liabilities 1,857,419 1,836,394 1,867,825
SHAREHOLDERS' EQUITY 142,843 139,283 132,920
------------------------------------------
Total liabilities and
shareholders' equity $2,000,262 1,975,677 2,000,745
==========================================
Number of common shares
outstanding, in thousands 14,655 14,617 13,276
TRUSTCO BANK CORP NY
CONSOLIDATED STATEMENTS OF INCOME Page 3
(dollars in thousands, except per share data)
Three Months Ended
03/31/95 12/31/94 03/31/94
Interest income
Loans $26,005 25,136 21,876
Investments 8,424 7,755 9,561
Federal funds sold 3,675 3,766 1,247
------------------------------------------
Total interest income 38,104 36,657 32,684
Interest expense
Deposits 16,994 15,455 14,522
Borrowings 216 166 144
------------------------------------------
Total interest expense 17,210 15,621 14,666
------------------------------------------
Net interest income 20,894 21,036 18,018
Provision for loan losses 3,573 1,565 1,827
Net interest income after ------------------------------------------
provision for loan losses 17,321 19,471 16,191
Net gain/(loss) from securities transactions 211 (2,526) (577)
Noninterest income 3,238 3,336 3,891
Noninterest expense 11,751 10,744 11,409
------------------------------------------
Income before income taxes 9,019 9,537 8,096
Income tax expense 3,114 3,335 2,800
------------------------------------------
Net income $5,905 6,202 5,296
==========================================
Net income per share $0.40 0.42 0.36
Avg equivalent shares outstanding, in thousands 14,933 14,897 14,888
TRUSTCO BANK CORP NY
CONSOLIDATED AVERAGE BALANCE SHEETS Page 4
(in thousands)
Three Months Ended
03/31/95 12/31/94 03/31/94
Total assets $1,974,579 1,974,105 1,986,460
Shareholders' equity 140,543 137,641 141,322
Interest earning assets 1,895,605 1,894,650 1,910,767
Interest bearing liabilities 1,712,375 1,711,536 1,725,819
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: April 25, 1995
TrustCo Bank Corp NY
(Registrant)
By: /s/Robert A. McCormick
Robert A. McCormick
President and Chief Executive Officer