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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): July 15, 1997
(July 15, 1997)
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
TrustCo Bank Corp NY
Item 5. Other Events
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On July 15, 1997, TrustCo Bank Corp NY ("TrustCo")
issued two press releases with year to date and second
quarter results for the period ending June 30, 1997.
Attached is a copy of each press release labeled as
Exhibits 99(a) and 99(b).
Item 7. Exhibits
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Reg S-K Exhibit No. Description
___________________ ___________
99(a) Highlights Press Release of July
15, 1997, for the period ending
June 30, 1997, regarding year to
date and second quarter results.
99(b) Press Release of July 15, 1997,
for the period ending June 30,
1997, regarding year to date and
second quarter results.
Page 2
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 15, 1997
TrustCo Bank Corp NY
(Registrant)
By:/s/ Robert T. Cushing
_______________________
Robert T. Cushing
Vice President and
Chief Financial Officer
Page 3
Exhibits Index
The following exhibits are filed herewith:
Reg S-K Exhibit No. Description Page
__________________ ________________________________ _____
99(a) Highlights Press Release of July 5
15, 1997, for the period ending
June 30, 1997, regarding year to
date and second quarter results.
99(b) Press Release of July 15, 1997, 6
for the period ending June 30,
1997, regarding year to date and
second quarter results.
Page 4
Exhibit 99(a)
TRUSTCO
Bank Corp NY News Release
_________________________________________________________________
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 15, 1997
FOR IMMEDIATE RELEASE:
TrustCo Bank Corp NY
(dollars in thousands, except per share data)
6/97 6/96
____ ____
Three Months Ended
June 30:
Net Income $ 7,853 6,913
Average Equivalent
Shares Outstanding 21,120,000 20,931,000
Net Income per Share $ 0.37 0.33
Six Months Ended
June 30:
Net Income $ 15,446 13,598
Average Equivalent
Shares Outstanding 21,138,000 20,937,000
Net Income per Share $ .73 .65
Period End:
Total Assets 2,301,897 2,223,973
Total Nonperforming Loans 12,247 13,926
Total Nonperforming Assets 21,053 18,598
Allowance for Loan Losses 52,286 50,582
Allowance as a Percentage
of Total Loans 4.16% 4.12
Per share data has been adjusted for the 15% stock split
effective August 1996.
# # #
Page 5
Exhibit 99(b)
TRUSTCO
Bank Corp NY News Release
_______________________________________________________________
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 15, 1997
TRUSTCO ANNOUNCES
SECOND QUARTER AND YEAR-TO-DATE 1997 RESULTS
Schenectady, New York -- July 15, 1997
TrustCo Bank Corp NY (TrustCo, NASDAQ: TRST) announced that first
half results for 1997 continue to reflect strong performance with
respect to taxable equivalent net interest income, net income,
operating efficiencies and overall loan quality. "The first half
results for 1997 are on track with our expectations, and we
anticipate an even stronger second half of this year leading into
1998," stated Robert A. McCormick, President and Chief Executive
Officer.
Record second quarter net income of $7.9 million for 1997 was 14%
greater than the $6.9 million recorded in the comparable 1996
period. Earnings per share reached $0.37 for the second quarter
of 1997, up 12% over the prior year. Consistent with the
increases for the second quarter results, the six month
year-to-date 1997 net income of $15.4 million and earnings per
share of $0.73 are an increase of 14% and 12% over the net income
and earnings per share, respectively, for the comparable 1996
period.
Return on average equity for the second quarter of 1997 was 19.9%
compared to 18.6% in 1996. Mr. McCormick noted, "We have said
for a number of years now that the most important financial ratio
to measure how well TrustCo is operating is the return on equity.
The 19.9% return on equity during the second quarter is in line
with our expectations for 1997. I am very pleased with these
results and feel confident that we will achieve our budget of a
20% return on equity for the full year of 1997." For the first
six months, the return on equity was 19.8% in 1997 and 18.5% in
1996.
-more-
Page 6
Average total assets increased by 3% between the second quarter
of 1996 and the second quarter of 1997. The increase in assets
was primarily concentrated in the loan portfolio and in
short-term overnight investments. Commenting on this growth, Mr.
McCormick remarked, "During the quarter, TrustCo increased
average assets by approximately $65 million, in a time period
when virtually all other financial institutions are suffering
from deposit outflows. I think that this speaks directly to our
commitment as the Home Town Bank. We are expanding our branch
network, and have recently opened a new, full-service branch in
West Sand Lake, and a second new branch in South Glens Falls. A
third new branch is presently under construction in Wynantskill,
and is expected to open during the third quarter. We have been
able to attract new customers to our bank due to our superior
service, pricing, and extensive branch network. That formula has
served us well over our 95-year history, and will continue to in
the future."
For the six months ended June 30, 1997, TrustCo's efficiency
ratio was 40.5%, as compared to 39.7% in 1996. Mr. McCormick
noted, "We have a long history of strong expense controls over
all aspects of our operations. As a matter of fact, over the
last five years, the average efficiency ratio for all banks
headquartered in New York State was 62% as compared to TrustCo's
44% for the same time period. That means that TrustCo is
approximately 30% more efficient than the average New York State
bank. In a recent U.S. Banker article, TrustCo was listed as the
third most efficiently run bank of the top 300 banks in the
country. Those results don't just happen. They are the product
of concerted effort by every employee of TrustCo to keep costs
down and to constantly refine operating efficiencies."
At June 30, 1997, total nonperforming loans were $12.2 million,
down $1.7 million from June 30, 1996. The reserve set aside for
nonperforming loans increased during the year to $52.3 million
and, as a percentage of total loans, increased to 4.16% at June
30, 1997.
Also during the quarter, TrustCo paid common stock cash dividends
of $0.28 per share in 1997, compared to $0.24 per share in 1996,
a dividend payout ratio in excess of 70% for both 1997 and 1996.
Mr. McCormick stated, "We retain within the Company sufficient
capital to meet our needs for growth and for regulatory purposes.
Traditionally we return to our owners any capital that we cannot
effectively utilize." TrustCo is classified as a well
capitalized bank for regulatory purposes.
TrustCo Bank Corp NY serves the financial needs of customers
through its banking subsidiary, Trustco Bank, National
Association. Trustco Bank operates 50 bank offices, in Albany,
Columbia, Greene, Rensselaer, Saratoga, Schenectady, Warren and
Washington Counties. In addition, Trustco Bank operates a full
service Trust Department with $1.0 billion of assets under
management.
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Page 7
TRUSTCO BANK CORP NY
SCHENECTADY, NY
FINANCIAL HIGHLIGHTS
(dollars in thousands, except per share data)
Three Months Ended
06/30/97 03/31/97 06/30/96
Summary of operations
Net interest income (TE) $ 22,246 21,772 22,176
Provision for loan losses 1,185 1,210 854
Net gain/(loss) from securities transactions (295) (495) (2,630)
Noninterest income 4,104 4,031 3,655
Noninterest expense 11,587 11,204 10,675
Net income 7,853 7,593 6,913
Per common share (1)
Net income 0.37 0.36 0.33
Cash dividends 0.28 0.28 0.24
Book value at period end 8.28 7.91 7.54
Market price at period end 21.38 20.75 16.74
At period end
Full time equivalent employees 452 444 442
Full service banking offices 50 48 48
Performance ratios
Return on average assets 1.38 % 1.36 1.25
Return on average equity (2) 19.92 19.58 18.64
Efficiency (3) 40.79 40.17 39.01
Net interest spread (TE) 3.63 3.58 3.71
Net interest margin (TE) 4.07 4.00 4.14
Dividend payout ratio 71.48 73.87 70.42
Capital ratios at period end (4)
Total equity to assets 7.01 6.92 6.85
Tier 1 risk adjusted capital 13.37 13.24 12.64
Total risk adjusted capital 14.66 14.53 13.92
Asset quality analysis at period end
Nonperforming loans to total loans 0.98 0.96 1.13
Nonperforming assets to total assets 0.91 0.88 0.84
Allowance for loan losses to total loans 4.16 4.20 4.12
Coverage ratio (5) 4.3 X 4.4 X 3.6 X
(1) All share and per share information has been restated for the effect
of the 15% stock split declared August, 1996.
(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.
Page 8
FINANCIAL HIGHLIGHTS, Continued
Six Months Ended
06/30/97 06/30/96
Summary of operations
Net interest income (TE) $ 44,018 43,936
Provision for loan losses 2,395 3,964
Net gain/(loss) from securities transactions (790) (3,051)
Noninterest income 8,135 7,203
Noninterest expense 22,791 21,121
Net income 15,446 13,598
Per common share (1)
Net income 0.73 0.65
Cash dividends 0.55 0.48
Book value at period end 8.28 7.54
Market price at period end 21.38 16.74
Performance ratios
Return on average assets 1.37 % 1.24
Return on average equity (2) 19.75 18.48
Efficiency (3) 40.48 39.71
Net interest spread (TE) 3.61 3.70
Net interest margin (TE) 4.04 4.14
Dividend payout ratio 72.65 71.53
Page 9
CONSOLIDATED BALANCE SHEETS
(dollars in thousands)
06/30/97 12/31/96 06/30/96
ASSETS
Loans, net $ 1,203,658 1,190,321 1,177,140
Securities available for sale 670,809 618,670 488,352
Federal funds sold 290,000 310,000 435,000
---------- ---------- ----------
Total earning assets 2,164,467 2,118,991 2,100,492
Cash and due from banks 41,329 45,779 43,267
Bank premises and equipment 22,712 23,098 24,269
Other assets 73,389 73,912 55,945
---------- ---------- ----------
Total assets $ 2,301,897 2,261,780 2,223,973
========== ========== ==========
LIABILITIES
Deposits:
Demand $ 125,206 123,553 112,233
Interest-bearing checking 230,228 236,264 235,078
Savings 662,342 661,915 674,744
Money Market 59,337 61,131 66,650
Certificates of deposit > $100 thou 98,159 89,793 85,921
Other time deposits 804,586 780,490 759,225
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Total deposits 1,979,858 1,953,146 1,933,851
Short-term borrowings 115,245 111,662 106,654
Other liabilities 37,901 34,572 30,036
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Total liabilities 2,133,004 2,099,380 2,070,541
SHAREHOLDERS' EQUITY 168,893 162,400 153,432
---------- ---------- ----------
Total liabilities and
shareholders' equity $ 2,301,897 2,261,780 2,223,973
========== ========== ==========
Number of common shares
outstanding, in thousands 20,391 20,388 20,358
Page 10
CONSOLIDATED STATEMENTS OF INCOME
(dollars in thousands, except per share data)
Three Months Ended
06/30/97 03/31/97 06/30/96
Interest income
Loans $ 27,088 26,812 26,726
Investments 11,520 10,761 11,384
Federal funds sold 4,255 4,322 3,712
---------- ---------- ----------
Total interest income 42,863 41,895 41,822
Interest expense
Deposits 20,004 19,571 19,193
Borrowings 1,373 1,317 1,097
---------- ---------- ----------
Total interest expense 21,377 20,888 20,290
---------- ---------- ----------
Net interest income 21,486 21,007 21,532
Provision for loan losses 1,185 1,210 854
---------- ---------- ----------
Net interest income after
provision for loan losses 20,301 19,797 20,678
Net gain/(loss) from securities transactions (295) (495) (2,630)
Noninterest income 4,104 4,031 3,655
Noninterest expense 11,587 11,204 10,675
---------- ---------- ----------
Income before income taxes 12,523 12,129 11,028
Income tax expense 4,670 4,536 4,115
---------- ---------- ----------
Net income $ 7,853 7,593 6,913
========== ========== ==========
Net income per share $ 0.37 0.36 0.33
Avg equivalent shares outstanding, in thousands 21,120 21,157 20,931
Page 11
CONSOLIDATED STATEMENTS OF INCOME
(dollars in thousands, except per share data)
Six Months Ended
06/30/97 06/30/96
Interest income
Loans $ 53,900 53,673
Investments 22,281 22,644
Federal funds sold 8,577 7,013
---------- ----------
Total interest income 84,758 83,330
Interest expense
Deposits 39,575 38,837
Borrowings 2,690 1,830
---------- ----------
Total interest expense 42,265 40,667
---------- ----------
Net interest income 42,493 42,663
Provision for loan losses 2,395 3,964
---------- ----------
Net interest income after
provision for loan losses 40,098 38,699
Net gain/(loss) from securities transactions (790) (3,051)
Noninterest income 8,135 7,203
Noninterest expense 22,791 21,121
---------- ----------
Income before income taxes 24,652 21,730
Income tax expense 9,206 8,132
---------- ----------
Net income $ 15,446 13,598
========== ==========
Net income per share $ 0.73 0.65
Avg equivalent shares outstanding,
in thousands 21,138 20,937
Page 12
CONSOLIDATED AVERAGE BALANCE SHEETS
(in thousands)
Three Months Ended
06/30/97 03/31/97 06/30/96
Total assets $ 2,282,009 2,261,057 2,215,544
Shareholders' equity 162,838 162,143 151,767
Total loans 1,245,189 1,240,790 1,227,421
Interest earning assets 2,184,025 2,161,480 2,138,647
Interest-bearing liabilities 1,966,357 1,952,062 1,924,538
Six Months Ended
35,611 06/30/96
Total assets $ 2,271,591 2,198,640
Shareholders' equity 162,492 154,902
Total loans 1,243,002 1,227,293
Interest earning assets 2,172,814 2,119,605
Interest-bearing liabilities 1,959,249 1,908,520
Page 13