SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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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): October 17,1995
(October 17, 1995)
TrustCo Bank Corp NY
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(Exact name of registrant as specified in its charter)
New York
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(State or other jurisdiction of incorporation)
0-10592 14-1630287
(Commission File Number) (IRS Employer
Identification No.)
192 Erie Boulevard, Schenectady, New York 12305
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(Address of principal executive offices) (Zip Code)
Registrant s telephone number, including area code:
(518) 377-3311
Item 5. Other Events
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On October 17, 1995, TrustCo Bank Corp NY ("TrustCo") issued
two press releases with the third quarter and year to date
September 30, 1995, results. Attached are copies of the press
releases on Exhibits 99(a) and 99(b) incorporated herein by this
reference.
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: October 17, 1995
TrustCo Bank Corp NY
(Registrant)
By: /s/Robert T. Cushing
_________________________
Robert T. Cushing
Vice President and Chief
Financial Officer
EXHIBIT INDEX
The following exhibits are filed herewith:
Reg S-K Exhibit No Description
------------------ -----------
99(a) Press Release of October 17,
1995 regarding third quarter
and year to date September 30,
1995, results.
99(b) Highlights Press Release of
October 17, 1995 regarding
third quarter and year
to date September 30, 1995,
results.
Exhibit 99(a)
William F. Terry
Senior Vice President and Secretary
(518) 381-3611
For Immediate Release:
Schenectady, New York -- October 17, 1995
Today, TrustCo reported record earnings of $6.6 million for
the third quarter of 1995, up 12 percent from the year ago
quarter.
Commenting on the third quarter results was Robert A.
McCormick, President and Chief Executive Officer of TrustCo
Bank Corp NY. He stated, "This quarter's results were a record
for the Company. Our earnings in this quarter were greater
than in any other quarter in the Company's history. We have
achieved growth in net income of 12% over last year and 8%
over the second quarter of 1995. I am especially pleased with
these results in light of our asset growth and increasing
return on equity during the quarter."
TrustCo also announced today that its Board of Directors
declared a cash dividend of $0.275 per share. The dividend
will be paid on January 2, 1996 to shareholders of record on
December 8, 1995. Commenting on the cash dividend, Mr.
McCormick noted, "During the third quarter of this year, the
Company issued a stock split of 20%. This quarter we are
declaring a cash dividend equal to the per share cash dividend
paid prior to the stock split. For TrustCo shareholders, the
combination of those two events represents a cash dividend
increase of 20%."
Earnings per share for the third quarter were $0.36, an
increase of 9% from the third quarter of 1994. For the nine
months of 1995, net income was $18.6 million, an increase of
12% from the same period in 1994, with earnings per share
totalling $1.03, up 11%.
The 1995 financial highlights for TrustCo are as follows:
-- 8% increase in assets at September 30, 1995,
compared to year end 1994,
-- third quarter efficiency ratio of 42.2% and a year
to date efficiency ratio of 43.2%,
-- increase in the allowance for loan losses to $46.8
million at September 30, 1995 representing 3.86% of
loans outstanding, and
-- a return on average equity of 17.6% for the year and
18.4% for the third quarter.
The strong performance during the third quarter, and for the
entire year of 1995, indicates that the Company's goal of an
18% return on average equity for 1995 is achievable.
Mr. McCormick also noted, "The TrustCo branch expansion
program has taken another step forward during 1995 with the
opening of our branch at Exit 8 in Clifton Park. This marks
the third branch opening during 1995. Earlier in the year
branches were opened in Hudson Falls and Malta Mall. The
expansion of our branch network is a critical element in
planning for the Company's future. During the remainder of
1995, we anticipate opening one more branch which will be
located in Mechanicville. All told, during 1995, we will have
expanded our branch network by 10%."
Asset quality, one of the cornerstones of TrustCo's success,
remained strong during 1995. Total nonperforming loans were
1.38% of total loans and nonperforming assets are only 0.93%
of total assets at September 30, 1995. These percentages are
well below industry averages for nonperforming loans and
assets.
TrustCo increased average interest earning assets by
approximately $100 million during the third quarter of 1995.
During that same time period in 1995, the net interest margin
decreased from 4.21% in the second quarter to 4.04% in the
third quarter. The $100 million increase in average earning
assets, offset by the reduction in net interest margins,
resulted in third and second quarter taxable equivalent net
interest income that was almost unchanged. Commenting on
this, Mr. McCormick noted, "In 1995 we made a conscious effort
to expand the TrustCo franchise with new branches and very
aggressively priced deposit products. We knew that this
strategy would reduce the net interest margins slightly but
we also knew that our growth would more than offset that
reduction in margin. The increased asset size will result in
future increases in income and help us achieve our 1996 goal
of a 19% return on average equity."
TrustCo is a $2.1 billion bank holding company and through its
subsidiary bank, Trustco Bank, National Association, operates
46 bank offices in Albany, Columbia, Greene, Rensselaer,
Saratoga, Schenectady, Warren and Washington counties. In
addition, the bank operates a full service Trust Department
with $742 million of assets under management. The common
shares of TrustCo are traded on the NASDAQ National Market
System under the ticker symbol TRST.
Page 1
FINANCIAL HIGHLIGHTS
(dollars in thousands, except per share data)
Three Months Ended
09/30/95 06/30/95 9/30/94
-------- -------- -------
Summary of operations
Net interest income (TE) $20,669 20,615 21,232
Provision for loan losses 3,120 3,045 2,778
Net gain/(loss) from
securities transactions 141 417 (2,479)
Noninterest income 3,506 3,569 3,317
Noninterest expense 10,695 11,862 9,599
Net income 6,596 6,106 5,914
Per common share (4)
Net income 0.36 0.34 0.33
Cash dividends 0.28 0.23 0.21
Book value at period end 8.50 8.38 7.79
Market price at period end 21.75 18.13 17.71
At period end
Full time equivalent
employees 441 446 415
Full service banking
offices 46 45 43
Performance ratios
Return on average assets 1.23 % 1.21 1.17
Return on average
equity (1) 18.39 17.36 17.45
Efficiency (2) 42.16 42.79 38.57
Net interest spread (TE) 3.58 3.75 4.11
Net interest margin (TE) 4.04 4.21 4.42
Dividend payout ratio 73.39 66.07 61.75
Capital ratios at period end
Total equity to assets 7.00 7.07 6.87
Tier 1 risk adjusted
capital 12.27 12.29 12.01
Total risk adjusted
capit 13.55 13.57 13.29
Asset quality analysis at period end (5)
Nonperforming loans to
total loans 1.38 1.13 1.08
Nonperforming assets
to total assets 0.93 0.85 0.87
Allowance for loan losses
to total loans 3.86 3.70 3.42
Coverage ratio (3) 2.8X 3.3X 3.2X
(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 allowance for loan losses divided by
total nonperforming loans.
(4) All per share information has been adjusted for the 6
for 5 stock split effective August, 1995.
(5) 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.
FINANCIAL HIGHLIGHTS, Continued Page 2
Nine Months Ended
09/30/95 09/30/94
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Summary of operations
Net interest income (TE) $62,627 59,713
Provision for loan losses 9,738 6,491
Net gain/(loss) from
securities transactions 769 (6,351)
Noninterest income 10,313 10,101
Noninterest expense 34,308 29,816
Net income 18,607 16,686
Per common share (4)
Net income $1.03 0.93
Cash dividends 0.73 0.59
Book value at period end 8.50 7.79
Market price at period end 21.75 17.71
Performance ratios
Return on average assets 1.22 % 1.11
Return on average
equity (1) 17.63 16.72
Efficiency (2) 43.18 41.58
Net interest spread (TE) 3.80 3.82
Net interest margin (TE) 4.23 4.14
Dividend payout ratio 69.36 61.67
CONSOLIDATED BALANCE SHEETS Page 3
(dollars in thousands)
09/30/95 12/31/94 09/30/94
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ASSETS
Loans, net $1,163,579 1,122,938 1,108,571
Securities available
for sale 373,186 117,458 201,205
Investment securities 292,444 347,858 337,424
Federal funds sold 190,000 263,000 217,000
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Total earning assets 2,019,209 1,851,254 1,864,200
Cash and due from banks 44,524 52,479 48,530
Bank premises and equipment 24,802 23,877 24,242
Other assets 47,915 48,067 51,939
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Total assets 2,136,450 1,975,677 1,988,911
========== ========= ========
LIABILITIES
Deposits:
Demand $105,739 93,496 96,882
Savings 848,068 911,629 960,425
Money Market 71,021 92,965 99,405
Certificates of deposit 87,372 62,511 54,304
Other time deposits 785,722 629,230 594,737
---------- --------- --------
Total deposits 1,897,922 1,789,831 1,805,753
Short-term borrowings 60,607 12,713 13,932
Long-term debt 0 3,550 2,950
Other liabilities 28,328 30,300 29,674
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Total liabilities 1,986,857 1,836,394 1,852,309
SHAREHOLDERS' EQUITY 149,593 139,283 136,602
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Total liabilities and
shareholders' equity 2,136,450 1,975,677 1,988,911
========== ========= ========
Number of common shares
outstanding, in thousands 17,604 17,541 17,538
CONSOLIDATED STATEMENTS OF INCOME Page 4
(dollars in thousands, except per share data)
Three Months Ended
09/30/95 06/30/95 09/30/94
-------- -------- --------
Interest income
Loans $27,035 26,558 23,961
Investments 11,563 10,459 9,838
Federal funds sold 2,908 2,942 2,416
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Total interest
income 41,506 39,959 36,215
Interest expense
Deposits 20,765 19,643 15,164
Borrowings 642 230 178
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Total interest
expense 21,407 19,873 15,342
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Net interest
income 20,099 20,086 20,873
Provision for loan losses 3,120 3,045 2,778
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Net interest income
after provision
for loan losses 16,979 17,041 18,095
Net gain/(loss) from
securities transactions 141 417 (2,479)
Noninterest income 3,506 3,569 3,317
Noninterest expense 10,695 11,862 9,599
---------- --------- --------
Income before income taxes 9,931 9,165 9,334
Income tax expense 3,335 3,059 3,420
---------- --------- --------
Net income $6,596 6,106 5,914
========== ========= ========
Net income per share $0.36 0.34 0.33
Avg equivalent shares
outstanding,
in thousands 18,119 17,957 17,924
CONSOLIDATED STATEMENTS OF INCOME Page 5
(dollars in thousands, except per share data)
Nine Months Ended
09/30/95 09/30/94
--------- --------
Interest income
Loans $79,598 68,737
Investments 30,446 29,596
Federal funds sold 9,525 5,292
---------- ---------
Total interest income 119,569 103,625
Interest expense
Deposits 57,402 44,579
Borrowings 1,088 498
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Total interest
expense 58,490 45,077
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Net interest income 61,079 58,548
Provision for loan losses 9,738 6,491
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Net interest income
after provision
for loan losses 51,341 52,057
Net gain/(loss) from
securities transactions 769 (6,351)
Noninterest income 10,313 10,101
Noninterest expense 34,308 29,816
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Income before income taxes 28,115 25,991
Income tax expense 9,508 9,305
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Net income $18,607 16,686
========== =========
Net income per share $1.03 0.93
Avg equivalent shares
outstanding, in thousands 17,984 17,872
CONSOLIDATED AVERAGE BALANCE SHEETS Page 6
(in thousands)
Three Months Ended
09/30/95 06/30/95 09/30/94
Total assets $2,127,825 2,031,611 2,011,019
Shareholders' equity 146,228 143,713 134,657
Interest earning assets 2,056,611 1,957,664 1,926,937
Interest bearing
liabilities 1,851,576 1,761,016 1,752,456
Nine Months Ended
09/30/95 09/30/94
Total assets $2,045,234 2,001,367
Shareholders' equity 143,516 136,753
Interest earning assets 1,970,552 1,921,224
Interest bearing liabilities 1,775,499 1,743,553
Exhibit 99(b)
William F. Terry
Senior Vice President and Secretary
518/381-3611
Schenectady, New York -- October 17, 1995
FOR IMMEDIATE RELEASE:
TrustCo Bank Corp NY
(dollars in thousands, except per share data)
9/95 9/94
Three Months Ended
September 30:
Net Income $ 6,596 $ 5,914
Average Equivalent
Shares Outstanding 18,119,000 17,924,000
Net Income per Share $.36 $.33
Nine Months Ended
September 30:
Net Income $ 18,607 $ 16,686
Average Equivalent
Shares Outstanding 17,984,000 17,872,000
Net Income per Share $1.03 $.93
Total Nonperforming Loans $16,733 $12,362
Total Nonperforming Assets 19,784 17,242
Allowance for Loan Losses 46,775 39,233
Allowance as a Percentage
of Total Loans 3.86% 3.42%
The 1994 per share data has been adjusted for the 6 for 5
stock split effective August 1995.
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