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 21, 1998
(July 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
On July 21, 1998, TrustCo Bank Corp NY ("TrustCo") issued two press
releases with year to date and second quarter results for the period ending June
30, 1998. Attached is a copy of each press release labeled as Exhibits 99(a) and
99(b).
Item 7. Exhibits
Reg S-K Exhibit No. Description
99(a) Highlights Press Release of July 21, 1998, for the
period ending June 30, 1998, regarding year to date
and second quarter results.
99(b) Press Release of July 21, 1998, for the period
ending June 30, 1998, 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 21, 1998
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 Page
- ------------------ ---------------------------- ------
99(a) Highlights Press Release of July 21, 1998, 5
for the period ending June 30, 1998,
regarding year to date and second
quarter results.
99(b) Press Release of July 21, 1998, for 6
the period ending June 30, 1998,
regarding year to date and second
quarter results.
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 21, 1998
FOR IMMEDIATE RELEASE:
TrustCo Bank Corp NY
(dollars in thousands, except per share data)
6/98 6/97
June 30:
Net Income $ 8,666 7,853
Average Equivalent Shares Outstanding:
Basic 23,308,000 23,473,000
Diluted 24,278,000 24,081,000
Net Income per Share:
Basic $ 0.37 0.33
Diluted 0.36 0.33
Six Months Ended
June 30:
Net Income $ 17,044 15,446
Average Equivalent Shares Outstanding:
Basic 23,341,000 23,459,000
Diluted 24,299,000 24,108,000
Net Income per Share:
Basic $ 0.73 0.66
Diluted 0.70 0.64
Period End:
Total Assets 2,434,195 2,301,897
Total Nonperforming Loans 10,986 12,247
Total Nonperforming Assets 18,476 21,053
Allowance for Loan Losses 54,667 52,286
Allowance as a Percentage
of Total Loans 4.17% 4.16%
Per share data has been adjusted for the 15% stock split effective August
1997.
# # #
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 21, 1998
TRUSTCO ANNOUNCES
RECORD SECOND QUARTER AND YEAR-TO-DATE 1998 RESULTS
Schenectady, New York -- July 21, 1998
TrustCo Bank Corp NY (TrustCo, NASDAQ: TRST) announced record second quarter and
year to date 1998 results. The 1998 results reflect continued strong performance
with respect to taxable equivalent net interest income, operating efficiencies,
net income, and overall loan quality. The performance for the first half of 1998
resulted in TrustCo attaining a return on equity of 21.4% in 1998. "The
performance for the first half of this year met our expectations, and sets the
stage for TrustCo to have a record year for 1998" stated Robert A. McCormick,
President and Chief Executive Officer, " I am especially pleased with attaining
our goal of a 21% return on equity for the first half of 1998."
Net income for the three months ended June 30, 1998 , was $8.7 million, or $0.36
diluted earnings per share, compared to $7.9 million, or $0.33 diluted earnings
per share, for the second quarter of 1997. The second quarter 1998 results
reflect an increase in net income of 10% and an increase of 9% in the diluted
earnings per share compared to the comparable period in 1997.
Year to date results also reflect significant increases in both net income and
diluted earnings per share between 1997 and 1998. For the six months ended June
30, 1998, net income reached $17.0 million and diluted earnings per share were
$0.70, compared to net income of $15.4 million and diluted earnings per share of
$0.64 for the comparable 1997 six month period. The 1998 results reflect an
increase of 10% and 9% in net income and diluted earnings per share,
respectively, over 1997.
Several core areas contributed significantly to the continued improvements noted
in the second quarter and first half of 1998. Among them are the following:
An increase in the taxable equivalent net interest income to $44.7
million in 1998, which is principally the result of the $138 million
increase in the average balance of earning assets between the first
half of 1997 and 1998,
An increase in fee revenues from the Trust Department and the overall
growth in non interest income,
Continued strong expense controls as evidenced by the efficiency ratio
reaching 39.1% for the first half of 1998, compared to 40.5% for 1997,
and
Strong credit quality as reflected by the decrease in nonperforming
loans to 0.84% of loans outstanding as of June 30, 1998 compared to
0.98% at June 30, 1997.
Mr. McCormick noted, "The consistently strong financial performance that TrustCo
has posted over the last 15 years is the result of a focus on the fundamentals.
We keep a strong eye on expenses, while at the same time we look to take
advantage of market opportunities for strategic growth in our balance sheet.
1998's performance is a good example of the success of TrustCo's formula. We
achieved an efficiency ratio that places us among the top handful of banks in
the country for well run financial organizations. Our 1998 return on equity of
21% is a tremendous result, and reflects our primary focus on shareholders."
Average total assets increased by 7% between the second quarter of 1997 and the
second quarter of 1998. The increase in assets was primarily concentrated in the
loan portfolio and in the short term overnight investments. The growth in the
assets is matched by a $133 million growth in deposits and short term
borrowings. Commenting on this growth, Mr. McCormick noted, "The upstate New
York region is experiencing continued consolidation of the banking industry with
more and more of the community based banks being acquired by out of state
enterprises. TrustCo is well positioned to take advantage of the inevitable
disruption to customers that occurs during these periods of consolidation. We
continue to actively seek customers that are interested in a locally based bank,
where decisions are made in the customers' community, not in some corporate
headquarters thousands of miles away. In addition, our branch expansion program
continues to introduce the TrustCo product line to new communities in our
region. Later this year we will be opening new branches on Ushers Road, Clifton
Park, near Exit 10 of the Northway, in Cobleskill at the Wal-Mart plaza, and in
Duanesburg. We are excited at the opportunities available to expand, and we are
delighted by the reception we have received in all the new communities that we
are serving."
At June 30, 1998, total nonperforming loans were $11.0 million, down $1.3
million from June 30, 1997. The allowance for loan losses increased during the
year to $54.7 million and as a percentage of total loans, stood at 4.17% at June
30, 1998.
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. As a percentage of net
income earned during the quarter, these quarterly dividends represent a 74%
dividend payout ratio for 1998 and 71% for 1997. Mr. McCormick stated, "We
retain within TrustCo sufficient capital to meet our needs for growth and
regulatory purposes. It has been our practice to return to our owners any
capital that we cannot effectively utilize."
On July 9th, Standard and Poor's Financial Information Services named TrustCo to
the S&P SmallCap 600 Index. Since the selection is recognition for TrustCo's
excellent performance over many years as well as its leadership within its
market segment, this action provides increased nationwide visibility for
TrustCo. As index funds add TrustCo to portfolios, the increased demand for
TrustCo shares should benefit our owners.
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 $1.17 billion of assets under management.
TRUSTCO BANK CORP NY Page 1
SCHENECTADY, NY
(dollars in thousands, except per share data)
Three Months Ended
06/30/98 03/31/98 06/30/97
Summary of operations
Net interest income (TE) $22,198 22,520 22,246
Provision for loan losses 1,558 1,372 1,185
Net gain/(loss) from securities transactions 104 32 (295)
Noninterest income 5,243 4,522 4,104
Noninterest expense 11,299 11,529 11,587
Net income 8,666 8,378 7,853
Per common share (1)
Net income per share:
- Basic 0.37 0.36 0.33
- Diluted 0.36 0.34 0.33
Cash dividends 0.275 0.275 0.239
Book value at period end 7.89 7.59 7.20
Market price at period end 26.25 28.38 18.59
At period end
Full time equivalent employees 468 467 452
Full service banking offices 51 51 50
Performance ratios
Return on average assets 1.43% 1.43 1.38
Return on average equity (2) 21.61 21.12 19.92
Efficiency (3) 39.03 39.11 40.79
Net interest spread (TE) 3.30 3.45 3.63
Net interest margin (TE) 3.79 3.92 4.07
Dividend payout ratio 73.87 76.62 71.48
Capital ratios at period end (4)
Total equity to assets 6.77 6.83 7.01
Tier 1 risk adjusted capital 12.77 13.01 13.37
Total risk adjusted capital 14.06 14.30 14.66
Asset quality analysis at period end
Nonperforming loans to total loans 0.84 0.90 0.98
Nonperforming assets to total assets 0.76 0.79 0.91
Allowance for loan losses to total loans 4.17 4.14 4.16
Coverage ratio (5) 5.0X 4.6X 4.3X
(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.
FINANCIAL HIGHLIGHTS, Continued Page 2
Six Months Ended
06/30/98 06/30/97
Summary of operations
Net interest income (TE) $44,718 44,018
Provision for loan losses 2,930 2,395
Net gain/(loss) from securities transactions 136 (790)
Noninterest income 9,765 8,135
Noninterest expense 22,828 22,791
Net income 17,044 15,446
Per common share (1)
Net income per share:
- Basic 0.73 0.66
- Diluted 0.70 0.64
Cash dividends 0.550 0.478
Book value at period end 7.89 7.20
Market price at period end 26.25 18.59
Performance ratios
Return on average assets 1.%3 1.37
Return on average equity (2) 21.37 19.75
Efficiency (3) 39.07 40.48
Net interest spread (TE) 3.37 3.61
Net interest margin (TE) 3.85 4.04
Dividend payout ratio 75.22 72.65
CONSOLIDATED BALANCE SHEETS Page 3
(dollars in thousands)
06/30/98 12/31/97 06/30/97
ASSETS
Loans, net $1,257,767 1,244,821 1,203,658
Securities available for sale 605,415 601,899 670,809
Federal funds sold 445,000 395,000 290,000
---------------------------------------------------------------------------------
Total earning assets 2,308,182 2,241,720 2,164,467
Cash and due from banks 35,185 42,740 41,329
Bank premises and equipment 17,547 18,609 22,712
Other assets 73,281 69,196 73,389
---------------------------------------------------------------------------------
Total assets $2,434,195 2,372,265 2,301,897
=================================================================================
LIABILITIES
Deposits:
Demand $140,672 130,345 125,206
Interest-bearing checking 238,403 240,699 230,228
Savings 663,962 650,601 662,342
Money Market 57,356 57,021 59,337
Certificates of deposit > $100 thou 128,481 112,599 98,159
Other time deposits 843,160 830,598 804,586
---------------------------------------------------------------------------------
Total deposits 2,072,034 2,021,863 1,979,858
Short-term borrowings 129,478 127,850 115,245
Other liabilities 49,054 43,727 37,901
---------------------------------------------------------------------------------
Total liabilities 2,250,566 2,193,440 2,133,004
SHAREHOLDERS' EQUITY 183,629 178,825 168,893
---------------------------------------------------------------------------------
Total liabilities and
shareholders' equity $2,434,195 2,372,265 2,301,897
=================================================================================
Number of common shares
outstanding, in thousands 23,272 23,402 23,449
CONSOLIDATED STATEMENTS OF INCOME Page 4
(dollars in thousands, except per share data)
Three Months Ended
06/30/98 03/31/98 06/30/97
Interest income
Loans $27,805 27,882 27,088
Investments 9,713 10,399 11,520
Federal funds sold 6,296 5,122 4,255
-------------------------------------------------------------------------
Total interest income 43,814 43,403 42,863
Interest expense
Deposits 20,554 20,188 20,004
Borrowings 1,904 1,567 1,373
-------------------------------------------------------------------------
Total interest expense 22,458 21,755 21,377
-------------------------------------------------------------------------
Net interest income 21,356 21,648 21,486
Provision for loan losses 1,558 1,372 1,185
-------------------------------------------------------------------------
Net interest income after
provision for loan losses 19,798 20,276 20,301
Net gain/(loss) from securities transactions 104 32 (295)
Noninterest income 5,243 4,522 4,104
Noninterest expense 11,299 11,529 11,587
-------------------------------------------------------------------------
Income before income taxes 13,846 13,301 12,523
Income tax expense 5,180 4,923 4,670
-------------------------------------------------------------------------
Net income $8,666 8,378 7,853
=========================================================================
Net income per share:
- Basic $0.37 0.36 0.33
- Diluted 0.36 0.34 0.33
Avg equivalent shares outstanding, in thousands:
- Basic 23,308 23,381 23,473
- Diluted 24,278 24,326 24,081
========================================================================
CONSOLIDATED STATEMENTS OF INCOME Page 5
(dollars in thousands, except per share data)
Six Months Ended
06/30/98 06/30/97
Interest income
Loans $55,687 53,900
Investments 20,112 22,281
Federal funds sold 11,418 8,577
-----------------------------------------------------
Total interest income 87,217 84,758
Interest expense
Deposits 40,742 39,575
Borrowings 3,471 2,690
-----------------------------------------------------
Total interest expense 44,213 42,265
-----------------------------------------------------
Net interest income 43,004 42,493
Provision for loan losses 2,930 2,395
-----------------------------------------------------
Net interest income after
provision for loan losses 40,074 40,098
Net loss from securities transactions 136 (790)
Noninterest income 9,765 8,135
Noninterest expense 22,828 22,791
-----------------------------------------------------
Income before income taxes 27,147 24,652
Income tax expense 10,103 9,206
-----------------------------------------------------
Net income $17,044 15,446
=====================================================
Net income per share:
- Basic $0.73 0.66
- Diluted 0.70 0.64
Avg equivalent shares outstanding, in thousands:
- Basic 23,341 23,459
- Diluted 24,299 24,108
=====================================================
CONSOLIDATED AVERAGE BALANCE SHEETS Page 6
(in thousands)
Three Months Ended
06/30/98 03/31/98 06/30/97
Total assets $2,438,826 2,378,660 2,282,009
Shareholders' equity 175,602 175,927 162,838
Total loans 1,306,509 1,301,320 1,245,189
Interest earning assets 2,341,430 2,280,370 2,184,025
Interest-bearing liabilities 2,078,532 2,033,968 1,966,357
Six Months Ended
06/30/98 06/30/97
Total assets $2,408,909 2,271,591
Shareholders' equity 175,763 162,492
Total loans 1,303,929 1,243,002
Interest earning assets 2,311,069 2,172,814
Interest-bearing liabilities 2,056,373 1,959,249