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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
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Date of Report (Date of earliest event reported): July 18, 1996
(July 16, 1996)
TrustCo Bank Corp NY
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(Exact name of registrant as specified in its charter)
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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
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(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 July 16, 1996, TrustCo Bank Corp NY ("TrustCo") issued two press
releases with year to date and second quarter results for the period ending June
30, 1996. 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
July 16, 1996, for the
period ending June 30,
1996, regarding year to
date and second quarter
results.
99(b) Press Release of July 16,
1996, for the period ending
June 30, 1996, regarding
year to date and second
quarter results.
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: July 18, 1996
TrustCo Bank Corp NY
(Registrant)
By:/s/ Robert T. Cushing
Robert T. Cushing
Vice President and
Chief Financial Officer
Exhibits Index
The following exhibits are filed herewith:
Reg S-K Exhibit No. Description
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99(a) Highlights Press Release of July
16, 1996, for the period ending
June 30, 1996, regarding year to
date and second quarter results.
99(b) Press Release of July 16, 1996,
for the period ending June 30,
1996, regarding year to date and
second quarter results.
Exhibit 99(a)
TRUSTCO
Bank Corp NY News Release
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192 Erie Boulevard, Schenectady, New York, 12305
(518) 377-3311 Fax: (518) 381-3668
Subsidiary: Trustco Bank NASDAQ -- TRST
Contact: William F. Terry
Senior Vice President and Secretary
(518) 381-3611
Schenectady, New York -- July 16, 1996
FOR IMMEDIATE RELEASE:
TrustCo Bank Corp NY
(dollars in thousands, except per share data) 6/96 6/95
Three Months Ended
June 30:
Net Income $ 6,913,000 6,106,000
Average Equivalent
Shares Outstanding 18,201,000 17,957,000
Net Income per Share $ .38 .34
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Six Months Ended
June 30:
Net Income $ 13,598,000 12,011,000
Average Equivalent
Shares Outstanding 18,206,000 17,933,000
Net Income per Share $ .75 .67
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Period End:
Total Assets 2,223,973,000 2,086,680,000
Total Nonperforming Loans 13,926,000 13,335,000
Total Nonperforming Assets 18,598,000 17,656,000
Allowance for Loan Losses 50,582,000 43,715,000
Allowance as a Percentage
of Total Loans 4.12% 3.70
Per share data has been adjusted for the 6 for 5 stock split effective August
1995.
# # #
Exhibit 99(b)
TRUSTCO
Bank Corp NY News Release
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192 Erie Boulevard, Schenectady, New York, 12305
(518) 377-3311 Fax: (518) 381-3668
Subsidiary: Trustco Bank NASDAQ -- TRST
Contact: William F. Terry
Senior Vice President and Secretary
(518) 381-3611
For Immediate Release:
Schenectady, New York -- July 16, 1996
First half results for 1996 continue to reflect increases in net interest
income, net income, operating efficiencies and loan quality. "We are extremely
pleased with the results for the first half of this year. These results are in
line with our projections for 1996, and reaffirm our belief that 1996 and 1997
will be excellent years for TrustCo." Making the announcement was Robert A.
McCormick, President and Chief Executive Officer.
Record second quarter net income of $6.9 million for 1996 was 13% greater than
the $6.1 million recorded in the comparable 1995 period. Earnings per share
reached $0.38 for the second quarter of 1996, up 12% over prior years.
Consistent with the increases for the second quarter results, the six month
year-to-date 1996 net income and earnings per share were $13.6 million and
$0.75. The six month results for 1996 are an increase of 13%, and 12% over the
net income and earnings per share for 1995.
"At TrustCo, we measure our performance consistent with our shareholders'
expectations. Return on shareholders' equity is the most significant measure of
how effective we are at investing the funds that our shareholders have given to
us. To date in 1996, we have realized an annualized return on shareholders'
equity of 18.5%, which taken together with our plans for the second half of this
year, will result in a 19% return on equity for 1996. We are very pleased with
our results for 1996, but are even more proud of how well TrustCo has performed
over the last five years. Our average return on equity for the period January 1,
1991, through June 30, 1996, was 17.0%. I cannot think of any other major
financial institution locally that can match those results," stated Mr.
McCormick.
For the second quarter of 1996, TrustCo's efficiency ratio was 39.0%, as
compared to 42.8% in 1995. At the 1996 Annual Meeting of Shareholders, Mr.
McCormick noted that the efficiency ratio is a measure of operating costs
compared to net interest income, and that the lower the ratio the more
efficiently the company was operated. The results for 1996 put TrustCo among the
most efficient banking enterprises in the United States. Commenting on the
operations of TrustCo, Mr. McCormick noted, "Operating costs and controls over
our expenses are an integral part of the banking philosophy here at TrustCo. We
get every employee involved in efforts to reduce our operating expenses and to
develop ideas to make TrustCo an even more efficient
operation in the future. This philosophy is more than a slogan of the month,
it is the way we do business year after year."
Another long standing attribute benefitting shareholders is the consistently
high quality of assets at TrustCo. Nonperforming loans ended the second quarter
of 1996 at $13.9 million, down from the year end balance of $15.7 million and
the first quarter balance of $15.6 million. Likewise, the coverage ratio of our
allowance for loan losses to nonperforming loans grew to 3.6 times coverage as
of June 30, 1996, compared to 3.1 times coverage at year end 1995. Also, during
the quarter, TrustCo recognized $2.6 million of losses taken on the investment
securities portfolio. Mr. McCormick noted, "When interest rates in the
marketplace increase, as they have this quarter, we sell lower yielding
securities to generate cash for investment at the higher yields. At June 30,
1996, we have $435 million invested in overnight federal funds, which can be
reinvested in the coming months in other securities at a significant premium to
the rates currently being realized. The end result of this strategy is that
income in future periods will benefit from these actions, even though we had to
take losses this year. A relatively small loss today will generate significant
increases to interest income in the future."
Also during the quarter, TrustCo opened a new banking facility at Malta Four
Corners, located off exit 12 of the Northway. This is the 48th branch for
TrustCo, and is another clear indication of TrustCo's commitment to the Upstate
New York communities. "Our expansion program is focused on the Capital District
area. We are dedicated to this region, and believe it represents a tremendous
opportunity for our Company in the future. While other banks focus on other
states and other regions of the country, TrustCo continues to dedicate itself to
being the "Hometown Bank," stated Mr. McCormick.
TrustCo is a $2.2 billion bank holding company, and through its subsidiary bank,
Trustco Bank, National Association, operates 48 bank offices in Albany,
Columbia, Greene, Rensselaer, Saratoga, Schenectady, Warren and Washington
counties. In addition, the bank operates a full service Trust Department with
$868 million of assets under management. The common shares of TrustCo are traded
on the Nasdaq National Market tier of the Nasdaq Stock Market under the symbol
TRST.
FINANCIAL HIGHLIGHTS
(dollars in thousands, except per share data)
Three Months Ended
06/30/96 03/31/96 06/30/95
Summary of operations
Net interest income (TE) $22,176 21,761 20,615
Provision for loan losses 854 3,110 3,045
Net gain/(loss) from securities transactions (2,630) (421) 417
Noninterest income 3,655 3,548 3,569
Noninterest expense 10,675 10,446 11,862
Net income 6,913 6,685 6,106
Per common share (1)
Net income 0.38 0.37 0.34
Cash dividends 0.28 0.28 0.23
Book value at period end 8.67 8.74 8.38
Market price at period end 19.25 20.69 18.13
At period end
Full time equivalent employees 432 431 446
Full service banking offices 48 47 45
Performance ratios
Return on average assets 1.25 % 1.23 1.21
Return on average equity (2) 18.64 18.32 17.36
Efficiency (3) 39.01 40.42 42.79
Net interest spread (TE) 3.71 3.70 3.77
Net interest margin (TE) 4.14 4.13 4.22
Dividend payout ratio 70.42 72.67 66.07
Capital ratios at period end (4)
Total equity to assets 6.85 6.89 6.89
Tier 1 risk adjusted capital 12.64 12.74 12.29
Total risk adjusted capital 13.92 14.03 13.57
Asset quality analysis at period end
Nonperforming loans to total loans 1.13 1.27 1.13
Nonperforming assets to total assets 0.84 0.85 0.85
Allowance for loan losses to total loans 4.12 4.12 3.70
Coverage ratio (5) 3.6X 3.3X 3.3X
(1) All per share information has been adjusted for the 6 for 5
stock split effective August, 1995.
(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.
FINANCIAL HIGHLIGHTS, Continued Page 2
Six Months Ended
06/30/96 06/30/95
Summary of operations
Net interest income (TE) $43,936 41,958
Provision for loan losses 3,964 6,618
Net gain/(loss) from securities transactions (3,051) 628
Noninterest income 7,203 6,807
Noninterest expense 21,121 23,613
Net income 13,598 12,011
Per common share (1)
Net income 0.75 0.67
Cash dividends 0.55 0.46
Book value at period end 8.67 8.38
Market price at period end 19.25 18.13
Performance ratios
Return on average assets 1.24% 1.21
Return on average equity (2) 18.48 17.23
Efficiency (3) 39.71 43.69
Net interest spread (TE) 3.70 3.92
Net interest margin (TE) 4.14 4.35
Dividend payout ratio 71.53 67.14
CONSOLIDATED BALANCE SHEETS Page 3
(dollars in thousands)
06/30/96 12/31/95 06/30/95
ASSETS
Loans, net $1,177,140 1,177,822 1,137,499
Securities available for sale 488,352 640,206 322,371
Investment securities 0 0 332,857
Federal funds sold 435,000 239,000 165,000
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Total earning assets 2,100,492 2,057,028 1,957,727
Cash and due from banks 43,267 50,889 48,259
Bank premises and equipment 24,269 25,008 25,895
Other assets 55,945 43,260 54,799
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Total assets $2,223,973 2,176,185 2,086,680
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LIABILITIES
Deposits:
Demand $112,233 111,743 102,096
Now accounts 235,078 231,107 225,805
Savings 674,744 649,033 605,886
Money market 66,650 69,434 79,485
Certificates of
deposit > $100 thou 85,921 84,210 84,571
Other time deposits 759,225 785,122 771,208
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Total deposits 1,933,851 1,930,649 1,869,051
Short-term borrowings 106,654 56,654 37,503
Other liabilities 30,036 28,783 32,587
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Total liabilities 2,070,541 2,016,086 1,939,141
SHAREHOLDERS' EQUITY 153,432 160,099 147,539
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Total liabilities and
shareholders' equity $2,223,973 2,176,185 2,086,680
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Number of common shares
outstanding, in thousands,
restated for 1995 stock split 17,702 17,638 17,603
CONSOLIDATED STATEMENTS OF INCOME Page 4
(dollars in thousands, except per share data)
Three Months Ended
06/30/96 03/31/96 06/30/95
Interest income
Loans $26,726 26,947 26,558
Investments 11,384 11,260 10,459
Federal funds sold 3,712 3,301 2,942
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Total interest income 41,822 41,508 39,959
Interest expense
Deposits 19,193 19,644 19,643
Borrowings 1,097 733 230
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Total interest expense 20,290 20,377 19,873
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Net interest income 21,532 21,131 20,086
Provision for loan losses 854 3,110 3,045
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Net interest income after
provision for loan losses 20,678 18,021 17,041
Net gain/(loss) from
securities transactions (2,630) (421) 417
Noninterest income 3,655 3,548 3,569
Noninterest expense 10,675 10,446 11,862
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Income before income taxes 11,028 10,702 9,165
Income tax expense 4,115 4,017 3,059
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Net income $6,913 6,685 6,106
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Net income per share $0.38 0.37 0.34
Avg equivalent shares
outstanding, in thousands 18,201 18,210 17,957
CONSOLIDATED STATEMENTS OF INCOME Page 5
(dollars in thousands, except per share data)
Six Months Ended
06/30/96 06/30/95
Interest income
Loans $53,673 52,563
Investments 22,644 18,883
Federal funds sold 7,013 6,617
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Total interest income 83,330 78,063
Interest expense
Deposits 38,837 36,637
Borrowings 1,830 446
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Total interest expense 40,667 37,083
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Net interest income 42,663 40,980
Provision for loan losses 3,964 6,618
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Net interest income after
provision for loan losses 38,699 34,362
Net gain/(loss) from securities transactions (3,051) 628
Noninterest income 7,203 6,807
Noninterest expense 21,121 23,613
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Income before income taxes 21,730 18,184
Income tax expense 8,132 6,173
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Net income $13,598 12,011
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Net income per share $0.75 0.67
Avg equivalent shares outstanding, in thousands 18,206 17,933
CONSOLIDATED AVERAGE BALANCE SHEETS Page 6
(in thousands)
Three Months Ended
06/30/96 03/31/96 06/30/95
Total assets $2,215,544 2,181,734 2,031,611
Shareholders' equity 151,767 158,037 143,713
Total loans 1,227,421 1,227,164 1,171,702
Interest earning assets 2,138,647 2,100,562 1,953,127
Interest bearing liabilities 1,924,538 1,892,501 1,761,016
Six Months Ended
06/30/96 06/30/95
Total assets $2,198,640 2,003,253
Shareholders' equity 154,902 142,137
Total loans 1,227,293 1,167,707
Interest earning assets 2,119,605 1,924,059
Interest bearing liabilities 1,908,520 1,736,830