Conformed Copy
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): April 21, 1998
(April 21, 1998)
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
Two press releases were issued on April 21, 1998,
discussing first quarter results for 1998. Attached are the
press releases labeled as exhibit 99(a) and 99(b).
Item 7 (c) Exhibits
Reg S-K Exhibit No. Description
99(a) One page press release dated April 21,
1998, with first quarter 1998 results.
99(b) Press release dated April 21, 1998,
with first quarter 1998 results.
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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.
Date: April 21, 1998
TrustCo Bank Corp NY
(Registrant)
By:/s/ Robert T. Cushing
---------------------
Robert T. Cushing
Vice President and
Chief Financial Officer
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Exhibits Index
The following exhibits are filed herewith:
Reg S-K Exhibit No. Description Page
- ------------------ ---------------------------- ----------
99(a) One page press release dated April 21, 5
1998, highlighting first quarter 1998
results.
99(b) Press release dated April 21, 1998, 6
highlighting first quarter 1998 results.
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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 - April 21, 1998
FOR IMMEDIATE RELEASE:
TrustCo Bank Corp NY
(dollars in thousands, except per share data)
03/98 03/97
Three Months Ended March 31:
Net Income $ 8,378 7,593
Average Equivalent Shares Outstanding:
- Basic 23,381,000 23,445,000
- Diluted 24,326,000 24,113,000
Net Income per Share:
- Basic $ 0.36 0.32
- Diluted $ 0.34 0.31
Period End:
Total Assets 2,395,839 2,293,255
Total Nonperforming Loans 11,698 11,792
Total Nonperforming Assets 18,993 20,139
Allowance for Loan Losses 53,984 51,845
Allowance as a Percentage
of Total Loans 4.14% 4.20%
Share and per share data is adjusted for the effect of the 15% stock split
declared in August, 1997.
# # #
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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:
TRUSTCO ANNOUNCES
FIRST QUARTER 1998 RESULTS
Schenectady, New York -- April 21, 1998
TrustCo Bank Corp NY (TrustCo, NASDAQ: TRST) today announced record first
quarter earnings results. Net income for the three months ended March 31, 1998
was $8.4 million compared to $7.6 million for 1997, resulting in an increase
of 10.3%. Diluted earnings per share were $0.34 for the first quarter of 1998
compared to $0.31 for 1997, an increase of 9.7%. Returns on assets and equity
were 1.43% and 21.12% for 1998, and 1.36% and 19.58%, respectively, for 1997.
Robert A. McCormick, TrustCo's President and Chief Executive Officer,
commented on the record first quarter results "We are pleased with the momentum
that we are carrying into 1998. As we have indicated in the past, the single
most important measure of TrustCo's performance is return on shareholders'
equity. Our goal for 1998 is to achieve a 21% return for the year, and the
first quarter results will go a long way in helping us reach that goal."
Taxable equivalent net interest income increased to $22.5 million in the
first quarter of 1998 compared with $21.8 million for 1997. The increase in
taxable equivalent net interest income is the result of a combination of an
increase of $118.9 million in the average balance of interest earning assets
offset by an 8 basis points reduction in the net interest margin. Mr.
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McCormick noted, "We determined that in order for TrustCo to continue to grow
and expand our asset base, we would have to allow the net interest margin of
the Company to shrink slightly, which is exactly what occurred in the first
quarter. The increase in average earning assets by almost $120 million between
1997 and 1998 is the result of this strategy."
As a result of improvements in operating expenses in 1998, the efficiency ratio
for the first quarter of 1998 was 39.1%, compared to 40.2% in 1997. Also, during
the quarter, the allowance for loan losses was increased to $54.0 million, or
4.14% of the total loans at March 31, 1998. Stated another way, the allowance
for loan losses, a reserve set aside to help cover potential problem loans, can
absorb the TrustCo nonperforming loans as of March 31, 1998, 4.6 times. "In
all financial ratio analyses, TrustCo's results place us among the strongest
performing banks in the country. Our focus on core banking products, strong
asset quality, and extensive cost controls are the basic elements in our
success."
Also during the quarter, TrustCo paid common stock cash dividends of $0.275 per
share in 1998, compared to $0.239 per share in 1997. This represents a dividend
payout ratio of almost 77% in 1998 compared to 74% in 1997. Commenting on the
significant cash dividends that TrustCo paid to its shareholders, Mr.
McCormick noted, "Even with the increase in cash dividends paid to our
shareholders, we continue to meet the regulatory definition of a well
capitalized institution. We retain within the Company sufficient capital to
meet our needs for growth and for regulatory purposes. It has been our practice
to return to our owners any capital that we cannot effectively utilize."
TrustCo Bank Corp NY is a $2.4 billion bank holding company which serves
the financial needs of customers through its banking subsidiary, Trustco Bank,
National Association. Trustco Bank operates 51 bank offices, in Albany,Columbia,
Greene, Rensselaer, Saratoga, Schenectady, Warren and Washington Counties. In
addition, Trustco Bank operates a full service Trust Department with $1.15
billion of assets under management.
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TRUSTCO BANK CORP NY Page 1
SCHENECTADY, NY
(dollars in thousands, except per share data)
Three Months Ended
03/31/98 12/31/97 03/31/97
Summary of operations
Net interest income (TE) $22,520 22,216 21,772
Provision for loan losses 1,372 1,674 1,210
Net gain/(loss) from securities transactions 32 643 (495)
Noninterest income 4,522 4,908 4,031
Noninterest expense 11,529 12,324 11,204
Net income 8,378 8,246 7,593
Per common share (1)
Net income per share:
- Basic 0.36 0.35 0.32
- Diluted 0.34 0.34 0.31
Cash dividends 0.28 0.28 0.24
Book value at period end 7.59 7.64 6.88
Market price at period end 28.38 27.25 18.04
At period end
Full time equivalent employees 467 459 444
Full service banking offices 51 51 48
Performance ratios
Return on average assets 1.43% 1.40 1.36
Return on average equity (2) 21.12 20.34 19.58
Efficiency (3) 39.11 41.39 40.17
Net interest spread (TE) 3.45 3.49 3.58
Net interest margin (TE) 3.92 3.98 4.00
Dividend payout ratio 76.62 78.26 73.87
Capital ratios at period end (4)
Total equity to assets 6.83 6.92 6.92
Tier 1 risk adjusted capital 13.01 13.43 13.24
Total risk adjusted capital 14.30 14.72 14.53
Asset quality analysis at period end
Nonperforming loans to total loans 0.90 0.82 0.96
Nonperforming assets to total assets 0.79 0.84 0.88
Allowance for loan losses to total loans 4.14 4.12 4.20
Coverage ratio (5) 4.6X 5.X 4.X
(1) All share and per share information is adjusted for the 15% stock split declared August, 1997.
(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.
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CONSOLIDATED BALANCE SHEETS Page 2
(dollars in thousands)
03/31/98 12/31/97 03/31/97
ASSETS
Loans, net $1,248,873 1,244,821 1,181,594
Securities available for sale 621,017 601,899 588,437
Federal funds sold 403,000 395,000 373,000
Total earning assets 2,272,890 2,241,720 2,143,031
Cash and due from banks 34,579 42,740 50,749
Bank premises and equipment 18,033 18,609 22,759
Other assets 70,337 69,196 76,716
Total assets $2,395,839 2,372,265 2,293,255
LIABILITIES
Deposits:
Demand $131,019 130,345 112,617
Interest-bearing checking 238,672 240,699 259,454
Savings 657,674 650,601 662,471
Money Market 57,091 57,021 59,564
Certificates of deposit > $100 thou 122,481 112,599 97,605
Other time deposits 836,370 830,598 792,423
Total deposits 2,043,307 2,021,863 1,984,134
Short-term borrowings 131,778 127,850 112,469
Other liabilities 43,776 43,727 35,518
Total liabilities 2,218,861 2,193,440 2,132,121
SHAREHOLDERS' EQUITY 176,978 178,825 161,134
Total liabilities and
shareholders' equity $2,395,839 2,372,265 2,293,255
Number of common shares
outstanding, in thousands 23,314 23,402 23,428
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CONSOLIDATED STATEMENTS OF INCOME Page 3
(dollars in thousands, except per share data)
Three Months Ended
03/31/98 12/31/97 03/31/97
Interest income
Loans $27,882 27,905 26,812
Investments 10,399 10,872 10,761
Federal funds sold 5,122 4,824 4,322
Total interest income 43,403 43,601 41,895
Interest expense
Deposits 20,188 20,766 19,571
Borrowings 1,567 1,455 1,317
Total interest expense 21,755 22,221 20,888
Net interest income 21,648 21,380 21,007
Provision for loan losses 1,372 1,674 1,210
Net interest income after
provision for loan losses 20,276 19,706 19,797
Net gain/(loss) from securities transactions 32 643 (495)
Noninterest income 4,522 4,908 4,031
Noninterest expense 11,529 12,324 11,204
Income before income taxes 13,301 12,933 12,129
Income tax expense 4,923 4,687 4,536
Net income $8,378 8,246 7,593
Net income per share:
- Basic $0.36 0.35 0.32
- Diluted 0.34 0.34 0.31
Avg equivalent shares outstanding, in thousands:
- Basic 23,381 23,460 23,445
- Diluted 24,326 24,370 24,113
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CONSOLIDATED AVERAGE BALANCE SHEETS Page 4
(in thousands)
Three Months Ended
03/31/98 12/31/97 03/31/97
Total assets $2,378,660 2,342,655 2,261,057
Shareholders' equity 175,927 174,110 162,143
Total loans 1,301,320 1,290,121 1,240,790
Interest earning assets 2,280,370 2,244,266 2,161,480
Interest-bearing liabilities 2,033,968 1,998,796 1,952,062
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