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): January 19, 1999
(January 19, 1999)
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 January 19, 1999, TrustCo Bank Corp NY ("TrustCo") issued
two press releases with year to date and fourth quarter
results for the period ending December 31, 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 of
January 19, 1999, for the
period ending December 31,
1998, regarding year to
date and fourth quarter
results.
99(b) Press Release of January 19
1999 for the period ending
December 31, 1998, regarding
year to date and fourth
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: January 19, 1999
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 5
of January 19, 1999, for
the period ending
December 31, 1998, regarding
year to date and fourth
quarter results.
99(b) Press Release of January 7
19, 1999, for the period
ending December 31, 1998,
regarding year to date and
fourth 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
William F. Terry
Senior Vice President and Secretary
518-381-3611
TrustCo Announces Full Year and Fourth Quarter 1998 Results
Schenectady, New York - January 19, 1999
TrustCo Bank Corp NY (TrustCo, NASDAQ:TRST) announced record results for 1998.
Net income for the full year 1998 was $35.0 million, an increase of $2.8 million
or 9% over net income for 1997. Diluted earnings per share were $1.25 for 1998,
an increase of 9%, compared to the $1.15 earned in 1997. Return on average
assets and return on equity were 1.44% and 21.47% respectively for 1998 and
1.40% and 20.23% respectively for 1997.
Net income for the fourth quarter of 1998 was $8.8 million, an increase of 6%
from the $8.2 million reported in the fourth quarter 1997. Diluted earnings per
share were $0.31 for the quarter, or 7% greater than the $0.29 per share
reported in 1997's fourth quarter. Return on average assets and return on equity
for the fourth quarter were 1.42% and 20.90% respectively, compared to 1.40% and
20.34% respectively for the fourth quarter of 1997.
Highlights
Robert A. McCormick, TrustCo's President and Chief Executive Officer, commented
on the strong results for the quarter and 1998's exceptional performance. " We
are very pleased with 1998's results. The year was highlighted by solid growth
in the consumer side of our business, increases in fee income from our Trust
Department operations, and diligent expense control. TrustCo is well positioned
to take advantage of growth opportunities in the future and also to reach our
goal of a 22% return on equity for 1999" Mr.
McCormick said.
"During a period of unparalleled turbulence in the financial markets," Mr.
McCormick noted, "TrustCo's formula of providing traditional banking services to
communities in the Upstate New York region has served our shareholders well". In
1998, TrustCo continued its branch expansion program with the opening of
full-service bank branches in Cobleskill, at the Wal-Mart Plaza, and at Exit 10
of the Northway on Ushers Road. Commenting on the branch expansion program at
TrustCo, Mr. McCormick noted, "We continue to focus on expanding our
service delivery network through the establishment of additional branches
in our marketing territory. While some banks are distracted by opportunities in
other parts of the country, TrustCo is very focused on the Upstate New York
region as the primary area for expansion. We are pleased with the reception we
have received in all of the communities into which we have expanded during the
last several years, and believe this success is a clear sign that the Upstate
New York region has a strong desire for a traditional bank presence in their
communities."
Full Year 1998 Results
Net income for 1998 was $35.0 million, an increase of 9% over the net income of
$32.2 million in 1997. The increase in net income and the continued focus on
capital management resulted in a return on equity of 21.47% for 1998 and 20.23%
for 1997. TrustCo's efficiency ratio for the full year 1998 was 40.26% compared
to 40.61% in 1997. Commenting on the efficiency ratio, Mr. McCormick noted, "Our
efficiency ratio continues to reflect our focus on reducing operating costs at
every level in the organization. The results for 1998 are world class." In
addition, TrustCo has paid out approximately 76% of 1998's net income to
shareholders in the form of cash dividends on it's common stock as compared to
72% in 1997. Mr. McCormick noted, "The primary focus used by TrustCo to measure
our performance is return on equity, because that ratio is a clear indicator of
how well we are able to invest and generate returns on the funds that our owners
have given to us. For 1998 we achieved a 21.47% return on equity while at the
same time providing our owners 76% of our net income in the form of cash
dividends. Another measure of our success is the total return that our
shareholders received on their TrustCo stock. Based upon information provided by
Bloomberg Financial Markets, TrustCo stock achieved a 31.7% total return for
1998. I would consider that a very healthy return on investment under almost any
circumstances."
Fourth Quarter Results
Net income of $8.8 million for the fourth quarter 1998 was 6% greater than the
$8.2 million for the same period in 1997. Average assets during the quarter
increased by $107.8 million or 5% from the comparable period in 1997. Return on
equity was 20.90% for the quarter, an increase from the 20.34% in the fourth
quarter of 1997. The efficiency ratio for the quarter was 41.92% in 1998 and
41.39% in 1997.
TrustCo Bank Corp NY is a $2.5 billion bank holding company which services 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 $1.24 billion 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.
# # #
TRUSTCO Exhibit 99(b)
Bank Corp NY News Release
- ----------------------------------------------------------------
192 Erie Boulevard, Schenectady, New York, 12305
(518) 377-3311 Fax: (518) 381-3668
William F. Terry
Senior Vice President and Secretary
518-381-3611
Schenectady, New York - January 19, 1999
FOR IMMEDIATE RELEASE:
TrustCo Bank Corp NY
(dollars in thousands, except per share data)
12/98 12/97
Three Months Ended
December 31:
Net Income $ 8,762 8,246
Average Equivalent Shares Outstanding:
Basic 26,795,000 26,979,000
Diluted 28,014,000 28,026,000
Net Income per Share:
Basic $ 0.33 0.31
Diluted 0.31 0.29
==== ====
Twelve Months Ended
December 31:
Net Income $ 35,015 32,175
Average Equivalent Shares Outstanding:
Basic 26,813,000 27,074,000
Diluted 27,954,000 27,924,000
Net Income per Share:
Basic $ 1.31 1.19
Diluted 1.25 1.15
==== ====
Period End:
Total Assets 2,485,080 2,372,265
Total Nonperforming Loans 12,383 10,652
Total Nonperforming Assets 17,557 19,961
Allowance for Loan Losses 54,375 53,455
Allowance as a Percentage
of Total Loans 4.11% 4.12%
- - Per Share Data has been adjusted for the 15% stock split
effective August 19, 1998.
# # #
TRUSTCO BANK CORP NY Page 1
SCHENECTADY, NY
(dollars in thousands, except per share data)
Three Months Ended
12/31/98 09/30/98 12/31/97
Summary of operations
Net interest income (TE) $22,197 22,202 22,216
Provision for loan losses 1,230 450 1,674
Net securities transactions 727 135 643
Noninterest income 6,779 4,580 4,908
Noninterest expense 14,180 11,757 12,324
Net income 8,762 9,209 8,246
Per common share (1)
Net income per share:
- Basic 0.33 0.34 0.31
- Diluted 0.31 0.33 0.29
Cash dividends 0.275 0.239 0.239
Book value at period end 6.94 6.93 6.64
Market price at period end 30.00 23.32 23.70
At period end
Full time equivalent employees 480 460 459
Full service banking offices 53 53 51
Performance ratios
Return on average assets 1.42% 1.48 1.40
Return on average equity (2) 20.90 22.26 20.34
Efficiency (3) 41.92 41.00 41.39
Net interest spread (TE) 3.30 3.26 3.49
Net interest margin (TE) 3.79 3.75 3.98
Dividend payout ratio 84.24 69.49 78.26
Capital ratios at period end (4)
Total equity to assets 6.78 6.70 6.92
Tier 1 risk adjusted capital 12.77 12.49 13.43
Total risk adjusted capital 14.06 13.77 14.72
Asset quality analysis at period end
Nonperforming loans to total loans 0.94 0.79 0.82
Nonperforming assets to total assets 0.71 0.65 0.84
Allowance for loan losses to total loans 4.11 4.11 4.12
Coverage ratio (5) 4.4X 5.2X 5.0X
(1) All share and per share information is adjusted for 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
Twelve Months Ended
12/31/98 12/31/97
Summary of operations
Net interest income (TE) $89,117 88,685
Provision for loan losses 4,610 5,414
Net securities transactions 998 (166)
Noninterest income 21,124 17,388
Noninterest expense 48,765 46,226
Net income 35,015 32,175
Per common share (1)
Net income per share:
- Basic 1.31 1.19
- Diluted 1.25 1.15
Cash dividends 0.992 0.863
Book value at period end 6.94 6.64
Market price at period end 30.00 23.70
Performance ratios
Return on average assets 1.44 1.40
Return on average equity (2) 21.47 20.23
Efficiency (3) 40.26 40.61
Net interest spread (TE) 3.33 3.57
Net interest margin (TE) 3.81 4.02
Dividend payout ratio 75.97 72.34
CONSOLIDATED BALANCE SHEETS Page 3
(dollars in thousands)
12/31/98 12/31/97
ASSETS
Loans, net $1,268,328 1,244,821
Securities available for sale 717,410 601,899
Other short-term investments 24,979 0
Federal funds sold 358,000 395,000
-------------------------------
Total earning assets 2,368,717 2,241,720
Cash and due from banks 41,950 42,740
Bank premises and equipment 17,022 18,609
Other assets 57,391 69,196
-------------------------------
Total assets $2,485,080 2,372,265
===============================
LIABILITIES
Deposits:
Demand $154,358 130,345
Interest-bearing checking 266,027 240,699
Savings 660,376 650,601
Money Market 58,061 57,021
Certificates of deposit > $100 thou 139,310 112,599
Other time deposits 829,282 830,598
-------------------------------
Total deposits 2,107,414 2,021,863
Short-term borrowings 147,924 127,850
Other liabilities 43,900 43,727
-------------------------------
Total liabilities 2,299,238 2,193,440
SHAREHOLDERS' EQUITY 185,842 178,825
-------------------------------
Total liabilities and
shareholders' equity $2,485,080 2,372,265
===============================
Number of common shares
outstanding, in thousands 26,792 23,402
CONSOLIDATED STATEMENTS OF INCOME Page 4
(dollars in thousands, except per share data)
Three Months Ended
12/31/98 09/30/98 12/31/97
Interest income
Loans $27,222 27,726 27,905
Investments 10,758 10,009 10,872
Federal funds sold 4,679 6,439 4,824
-----------------------------------------------
Total interest income 42,659 44,174 43,601
Interest expense
Deposits 19,907 20,947 20,766
Borrowings 1,422 1,858 1,455
-----------------------------------------------
Total interest expense 21,329 22,805 22,221
-----------------------------------------------
Net interest income 21,330 21,369 21,380
Provision for loan losses 1,230 450 1,674
-----------------------------------------------
Net interest income after
provision for loan losses 20,100 20,919 19,706
Net securities transactions 727 135 643
Noninterest income 6,779 4,580 4,908
Noninterest expense 14,180 11,757 12,324
-----------------------------------------------
Income before income taxes 13,426 13,877 12,933
Income tax expense 4,664 4,668 4,687
-----------------------------------------------
Net income $8,762 9,209 8,246
===============================================
Net income per share:
- Basic $0.33 0.34 0.31
- Diluted 0.31 0.33 0.29
Avg equivalent shares outstanding, in thousands:
- Basic 26,795 26,774 26,979
- Diluted 28,014 27,913 28,026
===============================================
CONSOLIDATED STATEMENTS OF INCOME Page 5
(dollars in thousands, except per share data)
Twelve Months Ended
12/31/98 12/31/97
Interest income
Loans $110,635 109,346
Investments 40,879 44,898
Federal funds sold 22,536 17,761
-------------------------------
Total interest income 174,050 172,005
Interest expense
Deposits 81,596 80,946
Borrowings 6,751 5,574
-------------------------------
Total interest expense 88,347 86,520
-------------------------------
Net interest income 85,703 85,485
Provision for loan losses 4,610 5,414
-------------------------------
Net interest income after
provision for loan losses 81,093 80,071
Net securities transactions 998 (166)
Noninterest income 21,124 17,388
Noninterest expense 48,765 46,226
-------------------------------
Income before income taxes 54,450 51,067
Income tax expense 19,435 18,892
-------------------------------
Net income $35,015 32,175
===============================
Net income per share:
- Basic $1.31 1.19
- Diluted 1.25 1.15
Avg equivalent shares outstanding, in thousands:
- Basic 26,813 27,074
- Diluted 27,954 27,924
===============================
CONSOLIDATED AVERAGE BALANCE SHEETS Page 6
(in thousands)
Three Months Ended
12/31/98 09/30/98 12/31/97
Total assets $2,450,492 2,467,769 2,342,655
Shareholders' equity 186,084 182,659 174,110
Total loans 1,323,228 1,316,518 1,290,121
Interest earning assets 2,355,604 2,376,702 2,244,266
Interest-bearing liabilities 2,075,911 2,103,895 1,998,796
Twelve Months Ended
12/31/98 12/31/97
Total assets $2,433,238 2,302,598
Shareholders' equity 180,103 167,273
Total loans 1,311,967 1,260,771
Interest earning assets 2,338,838 2,204,725
Interest-bearing liabilities 2,073,276 1,977,442