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): October 20, 1998
(October 20, 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 October 20, 1998, TrustCo Bank Corp NY ("Trustco") issued
two press releases with year to date and third quarter results
for the period ending September 30, 1998. 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 dated October 20, 1998, for
the period ending September 30, 1998, regarding year
to date and third quarter results.
99(b) Press Release dated October
20, 1998, for the period
ending September 30, 1998,
regarding year to date and
third 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.
Date: October 20, 1998
TrustCo Bank Corp NY
(Registrant)
By: /s/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 5
October 20, 1998, for the period
ending September 30, 1998,
regarding year to date and third
quarter results.
99(b) Press Release of October 20, 6
1998, for the period ending
September 30, 1998, regarding year
to date and third quarter results.
TRUSTCO Exhibit 99(a)
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 - October 20, 1998
FOR IMMEDIATE RELEASE:
TrustCo Bank Corp NY
(dollars in thousands, except per share data) 9/98 9/97
Three Months Ended
September 30:
....................................
Net Income $ 9,209 8,483
Average Equivalent Shares Outstanding:
Basic 23,282,000 23,463,000
Diluted 24,272,000 24,268,000
Net Income per Share:
Basic $ 0.40 0.36
Diluted 0.38 0.35
Nine Months Ended
September 30:
Net Income $ 26,253 23,929
Average Equivalent Shares Outstanding:
Basic 23,321,000 23,495,000
Diluted 24,290,000 24,178,000
Net Income per Share:
Basic $ 1.13 1.02
Diluted 1.08 0.99
Period End:
Total Assets 2,488,733 2,344,499
Total Nonperforming Loans 10,415 10,514
Total Nonperforming Assets 16,082 20,587
Allowance for Loan Losses 54,325 52,684
Allowance as a Percentage
of Total Loans 4.11% 4.12%
Share and per share data has been calculated prior to the 15% stock split
effective August 1998.
Exhibit 99(b)
TRUSTCO
Bank Corp NY News Release
- -----------------------------------------------------------------
192 Erie Boulevard, Schenectady, New York, 12305
(518) 377-3311 Fax: (518) 381-3668
NASDAQ--TRST
Subsidiary: Trustco Bank
Contact: William F. Terry
Senior Vice President and Secretary
518-381-3611
FOR IMMEDIATE RELEASE:
TRUSTCO ANNOUNCES
RECORD THIRD QUARTER AND YEAR-TO-DATE 1998 RESULTS
Schenectady, New York - October 20, 1998
TrustCo Bank Corp NY (TrustCo, NASDAQ: TRST) today announced earnings results
for the third quarter and year to date 1998. Net income for the three months
ended September 30, 1998 was $9.2 million or 38 cents diluted earnings per
share, compared to $8.5 million, or 35 cents diluted earnings per share, for the
third quarter 1997. The third quarter results represent an increase of 9% in
both net income and diluted earnings per share for 1998 compared to 1997. Net
income for the nine months ended September 30, 1998 was $26.3 million, or $1.08
diluted earnings per share, compared to $23.9 million, or 99 cents diluted
earnings per share, for the first nine months of 1997. The year to date results
reflect increases of 10% in net income and 9% in diluted earnings per share.
Making the announcement was Robert A. McCormick, President and Chief Executive
Officer.
"TrustCo's results so far for 1998 are consistent with our expectations for the
year. For the first nine months of this year we achieved a return on equity of
21.7% compared to 20.2% for last year. I expect that, as we move into the fourth
quarter, we will continue this earnings momentum and that we will achieve our
21% return on equity goal for 1998." said McCormick.
For the third quarter of 1998, TrustCo's efficiency ratio was 41% compared to
40% for the third quarter 1997. Commenting on TrustCo's efficiency ratio Mr.
McCormick stated, "A cornerstone of the TrustCo operating philosophy is strong
and effective cost controls. We continually strive to identify new and
innovative ways to deliver superior quality services to our customers at the
lowest cost possible."
Another long-standing attribute that benefits TrustCo shareholders is the
consistently high quality of assets at TrustCo. Nonperforming loans ended the
third quarter at $10.4 million, down approximately $600 thousand from the second
quarter of 1998. The Company has a coverage ratio of the allowance for loan
loses to nonperforming loans of 5 times coverage as of September 30, 1998. "We
have a proactive style of dealing with and resolving problem loans in our
portfolio. We actively identify potential problem loans and quickly take
appropriate steps to protect the Bank's position. I think this style of asset
quality management has served us well. As a result our nonperforming loans are
less than 1% of our total loan portfolio", said McCormick.
Taxable equivalent net interest income was $22.2 million for the third quarter
1998 compared to $22.5 million for the comparable period in 1997. For the nine
month periods 1998 and 1997, taxable equivalent net interest income was $66.9
million and $66.5 million, respectively. Mr. McCormick noted "During the third
quarter, market interest rates have declined rapidly and dramatically in
response to global financial distress. This has resulted in a reduction in the
yields that we obtain on our loan and securities portfolios. The overall yield
on our earning assets has decreased 41 basis points during the third quarter,
while the yield on our interest bearing liabilities has only decreased by 9
basis points. This trend has resulted in an overall reduction in our net
interest margin by 30 basis points to 3.75% for the third quarter 1998 compared
to third quarter 1997. In response to these events we have offset the reduction
in the yields by increasing the average balance of our earning assets by almost
$150 million for the third quarter of 1998 compared to 1997. The net effect is
that we are earning less net yield but we are earning it on a larger base of
assets. This has resulted in our taxable equivalent net interest income for the
third quarters of 1998 and 1997 being virtually the same."
Also, during the third quarter 1998, TrustCo opened its 52nd and 53rd branches,
located at Exit 10 of the Northway on Ushers Road and in Cobleskill at the
Wal-Mart Plaza. Mr. McCormick commented on the TrustCo branch expansion program
by noting "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. Our services are being well received in these new communities and
we are exceeding the growth goals we established for our branch expansion
program. The results are a clear indication that the communities in the upstate
New York region have a strong desire to have a traditional bank branch presence
in their communities."
TrustCo Bank Corp NY is a $2.5 billion bank holding company which serves the
financial needs of customers through its banking subsidiary, Trustco Bank,
National Association. Trustco Bank operates 53 bank offices, in Albany,
Columbia, Greene, Rensselaer, Saratoga, Schenectady, Schoharie, Warren and
Washington Counties. In addition, Trustco Bank operates a full service Trust
Department with $1.12 billion of assets under management.
Except for historical information contained herein, the matters discussed in
this news release, and other information contained in the Company's SEC filings,
may express "forward looking statements". Those "forward looking statements "
may involve risk and uncertainties, including statements concerning future
events or performance, and assumptions and other statements that are other than
statements of historical facts. The Company wishes to caution readers not to
place undue reliance on any forward looking statements, which speak only as of
the date made. Readers are advised that various factors, including, but not
limited to, (i) credit risk; (ii) interest rate risk; (iii) competition; (iv)
changes in the regulatory environment; (v) changes in the general business
environment and economic trends; and (vi) the failure of certain vendors of
critical systems or services to comply with Year 2000 programming issues, could
cause the Company's actual results or circumstances for future periods to differ
materially from those anticipated or projected.
TrustCo does not undertake, and specifically disclaims any obligation, to
publicly release the results of any revisions that may be made to any forward
looking statements to reflect the occurrence of unanticipated events or
circumstances after the date of such statements.
TRUSTCO BANK CORP NY ...................................... Page 1
SCHENECTADY, NY
(dollars in thousands, except per share data)
Three Months Ended
09/30/98 06/30/98 09/30/97
Summary of operations
Net interest income (TE) $22,202 22,198 22,451
Provision for loan losses 450 1,558 1,345
Net gain/(loss) from securities transactions 135 104 (19)
Noninterest income 4,580 5,243 4,345
Noninterest expense 11,757 11,299 11,111
Net income 9,209 8,666 8,483
Per common share (1)
Net income per share:
- Basic 0.40 0.37 0.36
- Diluted 0.38 0.36 0.35
Cash dividends 0.275 0.275 0.239
Book value at period end 7.97 7.89 7.49
Market price at period end 26.81 26.25 23.70
At period end
Full time equivalent employees 460 468 459
Full service banking offices 53 51 51
Performance ratios
Return on average assets 1.48% 1.43 1.45
Return on average equity (2) 22.26 21.61 21.05
Efficiency (3) 41.00 39.03 40.11
Net interest spread (TE) 3.26 3.30 3.58
Net interest margin (TE) 3.75 3.79 4.05
Dividend payout ratio 69.49 73.87 66.04
Capital ratios at period end (4)
Total equity to assets 6.70 6.77 6.99
Tier 1 risk adjusted capital 12.49 12.77 13.52
Total risk adjusted capital 13.77 14.06 14.81
Asset quality analysis at period end
Nonperforming loans to total loans 0.79 0.84 0.82
Nonperforming assets to total assets 0.65 0.76 0.88
Allowance for loan losses to total loans 4.11 4.17 4.12
Coverage ratio (5) 5.2X 5.0X 5.0X
(1) All share and per share information is calculated prior to the 15% stock split declared August, 1998.
(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
Nine Months Ended
09/30/98 09/30/97
Summary of operations
Net interest income (TE) $66,920 66,469
Provision for loan losses 3,380 3,740
Net gain/(loss) from securities transactions 271 (809)
Noninterest income 14,345 12,480
Noninterest expense 34,585 33,902
Net income 26,253 23,929
Per common share (1)
Net income per share:
- Basic 1.13 1.02
- Diluted 1.08 0.99
Cash dividends 0.825 0.717
Book value at period end 7.97 7.49
Market price at period end 26.81 23.70
Performance ratios
Return on average assets 1.45% 1.40
Return on average equity (2) 21.67 20.19
Efficiency (3) 39.71 40.35
Net interest spread (TE) 3.34 3.60
Net interest margin (TE) 3.82 4.04
Dividend payout ratio 73.21 70.31
CONSOLIDATED BALANCE SHEETS Page 3
(dollars in thousands)
09/30/98 12/31/97 09/30/97
ASSETS
Loans, net $1,268,638 1,244,821 1,226,138
Securities available for sale 659,213 601,899 665,285
Federal funds sold 437,000 395,000 316,000
Total earning assets 2,364,851 2,241,720 2,207,423
Cash and due from banks 42,009 42,740 40,807
Bank premises and equipment 17,756 18,609 22,564
Other assets 64,117 69,196 73,705
Total assets $2,488,733 2,372,265 2,344,499
LIABILITIES
Deposits:
Demand $147,633 130,345 128,710
Interest-bearing checking 247,487 240,699 230,722
Savings 655,888 650,601 654,586
Money Market 54,986 57,021 58,016
Certificates of deposit > $100 thou 138,457 112,599 107,857
Other time deposits 857,357 830,598 819,357
Total deposits 2,101,808 2,021,863 1,999,248
Short-term borrowings 158,766 127,850 129,198
Other liabilities 42,771 43,727 40,691
Total liabilities 2,303,345 2,193,440 2,169,137
SHAREHOLDERS' EQUITY 185,388 178,825 175,362
Total liabilities and
shareholders' equity $2,488,733 2,372,265 2,344,499
Number of common shares
outstanding, in thousands 23,256 23,402 23,425
CONSOLIDATED STATEMENTS OF INCOME Page 4
(dollars in thousands, except per share data)
Three Months Ended
09/30/98 06/30/98 09/30/97
Interest income
Loans $27,726 27,805 27,541
Investments 10,009 9,713 11,745
Federal funds sold 6,439 6,296 4,360
Total interest income 44,174 43,814 43,646
Interest expense
Deposits 20,947 20,554 20,605
Borrowings 1,858 1,904 1,429
Total interest expense 22,805 22,458 22,034
Net interest income 21,369 21,356 21,612
Provision for loan losses 450 1,558 1,345
Net interest income after
provision for loan losses 20,919 19,798 20,267
Net gain/(loss) from securities transactions 135 104 (19)
Noninterest income 4,580 5,243 4,345
Noninterest expense 11,757 11,299 11,111
Income before income taxes 13,877 13,846 13,482
Income tax expense 4,668 5,180 4,999
Net income $9,209 8,666 8,483
Net income per share:
- Basic $0.40 0.37 0.36
- Diluted 0.38 0.36 0.35
Avg equivalent shares outstanding, in thousands:
- Basic 23,282 23,308 23,463
- Diluted 24,272 24,278 24,268
CONSOLIDATED STATEMENTS OF INCOME Page 5
(dollars in thousands, except per share data)
Nine Months Ended
09/30/98 09/30/97
Interest income
Loans $83,413 81,441
Investments 30,121 34,026
Federal funds sold 17,857 12,937
Total interest income 131,391 128,404
Interest expense
Deposits 61,689 60,180
Borrowings 5,329 4,119
Total interest expense 67,018 64,299
Net interest income 64,373 64,105
Provision for loan losses 3,380 3,740
Net interest income after
provision for loan losses 60,993 60,365
Net loss from securities transactions 271 (809)
Noninterest income 14,345 12,480
Noninterest expense 34,585 33,902
Income before income taxes 41,024 38,134
Income tax expense 14,771 14,205
Net income $26,253 23,929
Net income per share:
- Basic $1.13 1.02
- Diluted 1.08 0.99
Avg equivalent shares outstanding, in thousands:
- Basic 23,321 23,495
- Diluted 24,290 24,178
CONSOLIDATED AVERAGE BALANCE SHEETS Page 6
(in thousands)
Three Months Ended
09/30/98 06/30/98 09/30/97
Total assets $2,467,769 2,438,826 2,323,543
Shareholders' equity 182,659 175,602 169,841
Total loans 1,316,518 1,306,509 1,266,379
Interest earning assets 2,376,702 2,341,430 2,227,967
Interest-bearing liabilities 2,103,895 2,078,532 1,991,880
Nine Months Ended
09/30/98 09/30/97
Total assets $2,427,422 2,289,099
Shareholders' equity 178,087 164,969
Total loans 1,308,171 1,250,880
Interest earning assets 2,333,186 2,191,401
Interest-bearing liabilities 2,072,387 1,970,246