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 20, 1999
(July 20, 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
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TrustCo Bank Corp NY
Item 5. Other Events
Two press releases were issued on July 20, 1999, discussing
second quarter results for 1999. 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 July 20,
1999, highlighting second quarter and
six months 1999 results.
99(b) Press release dated July 20, 1999,
highlighting second quarter and six
months 1999 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.
Dated: July 20, 1999
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 July 20,
1999, highlighting second quarter
and six months 1999 results. 5
99(b) Press release dated July 20, 1999,
highlighting second quarter and six 6
months 1999 results.
4
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
FOR IMMEDIATE RELEASE: Schenectady, New York -- July 20, 1999
TrustCo Bank Corp NY
(dollars in thousands, except per share data)
6/99 6/98
Three Months Ended June 30:
Net Income $ 9,492 8,666
Provision for Loan Losses 1,500 1,558
Average Equivalent Shares Outstanding:
Basic 26,888,000 26,804,000
Diluted 27,964,000 27,920,000
Net Income per Share:
Basic $ 0.35 0.32
Diluted 0.34 0.31
Six Months Ended June 30:
Net Income $ 18,815 17,044
Provision for Loan Losses 3,013 2,930
Average Equivalent Shares Outstanding:
Basic 26,881,000 26,843,000
Diluted 27,978,000 27,944,000
Net Income per Share:
Basic $ 0.70 0.63
Diluted 0.67 0.61
Period End:
Total Assets 2,409,016 2,434,195
Total Nonperforming Loans 11,468 10,986
Total Nonperforming Assets 13,986 18,476
Allowance for Loan Losses 55,656 54,667
Allowance as a Percentage
of Total Loans 4.20% 4.17%
Per share data has been adjusted for the 15% stock split effective August
1998.
# # #
5
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
FOR IMMEDIATE RELEASE:
TRUSTCO ANNOUNCES RECORD HIGH
SECOND QUARTER AND YEAR TO DATE 1999 RESULTS
Schenectady, New York - July 20, 1999
TrustCo Bank Corp NY (TrustCo, NASDAQ: TRST) announced that it achieved record
quarterly results for the second quarter of 1999 and for the first six months of
the year. The 1999 results reflect strong performance with respect to growth in
taxable equivalent net interest income, net interest margin, recurring
noninterest income and operating efficiencies. The performance for the first
half of 1999 resulted in TrustCo attaining a return on average equity of 22.5%
in 1999. Making the announcement was Robert A. McCormick, President and Chief
Executive Officer.
Net income for the second quarter of 1999 was $9.5 million, or $0.34 diluted
earnings per share, compared to $8.7 million, or $0.31 diluted earnings per
share for the second quarter of 1998. The second quarter results reflect an
increase of 10% in both net income and diluted earnings per share, for 1999
compared to the comparable period in 1998.
Year to date results reflect significant increases in both net income and
diluted earnings per share between 1998 and 1999. For the six months ended June
30, 1999, net income was $18.8 million and diluted earnings per share were $0.67
compared to net income of $17.0 million and diluted earnings per share of $0.61
for the comparable six month period in 1998. The six-month results also reflect
an increase of 10% in both net income and diluted earnings per share for 1999,
compared to the six-month period in 1998.
Commenting on the results for 1999 Mr. McCormick noted, "The current quarter and
year to date 1999 results are tremendous. These record results are the product
of executing
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several initiatives at TrustCo to help increase net interest
income, increase asset quality, and reduce operating expenses."
For the quarter, the taxable equivalent net interest income increased from $22.2
million in 1998 to $24.0 million in 1999, an increase of 8%. Likewise the net
interest margin increased from 3.79% in 1998 to 4.07% in 1999. The six-month
results for taxable equivalent net interest income and net interest margin are
$44.7 million and 3.85% in 1998 compared to $47.4 million and 4.01% in 1999. Mr.
McCormick noted "The single greatest contributor to net income is net interest
income. We have worked very hard at identifying opportunities to expand on net
interest income and to increase our margins. I believe our record 1999 results
reflect the successes that we have had to date."
Expense controls are a cornerstone of the operating philosophy of TrustCo. For
1999, Trustco had an operating efficiency ratio of 38.3% for the quarter and
39.8% for the six-month results. This compares to the operating efficiency ratio
for 1998's second quarter of 39.0% and the six-month results of 39.1%. "A
consistent element of our strategy is to expand the value of the TrustCo
franchise while at the same time maintaining our operating cost at levels that
place us among the most efficient banking operations in the country. For the
second quarter, we achieved an operating efficiency ratio of 38% which by any
standard would place TrustCo as a world class leader in expense controls" noted
Mr. McCormick.
The single most important ratio for measuring the performance of TrustCo
continues to be return on average equity. The second quarter return on average
equity was 22.5% for 1999 compared to 21.6% for 1998. The six-month return on
average equity was 22.5% for 1999 and 21.4% for 1998. The target return on
equity for 1999 is 22% and Mr. McCormick noted "We are well on our way to
achieving our 1999 return on equity goals. The second quarter results also help
set the stage for the higher targets we will be developing for 2000."
Asset quality indicators continued to be strong during the quarter with
nonperforming assets as a percentage of total assets decreasing from 0.76% at
June 30, 1998 to 0.58% at June 30, 1999. The allowance for loan losses increased
to $55.7 million at June 30, 1999 and represents 4.20% of loans outstanding.
Also during the second quarter, TrustCo paid common stock cash dividends of
$0.275 per share in 1999 compared to $0.239 per share in 1998. For the six
months of 1999, TrustCo has paid $0.55 per share in common stock cash dividends
compared to $0.478 per share in 1998. The year to date cash dividends paid to
common stock shareholders represents a dividend payout of 79% in 1999 compared
to 75% in 1998. Mr. McCormick stated, "We retain within TrustCo sufficient
capital to meet our needs for growth and to continue our current classification
as a "well capitalized" institution 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.
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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 $1.28 billion of assets under management.
Except for historical information contained herein, the matters discussed in
this news release and other information contained in TrustCo's Securities and
Exchange Commission 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. TrustCo 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 risk
factors, including but not limited to: (1) credit risk, (2) interest rate risk,
(3) competition, (4) certain vendors critical systems or services failing to
comply with Year 2000 programming issues, (5) changes in the regulatory
environment, and (6) changes in general business and economic trends, could
cause the 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 statement.
###
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TRUSTCO BANK CORP NY Page 1
SCHENECTADY, NY
(dollars in thousands, except per share data)
Three Months Ended
06/30/99 03/31/99 06/30/98
Summary of operations
Net interest income (TE) $23,983 23,387 22,198
Provision for loan losses 1,500 1,513 1,558
Net securities transactions (657) (420) 104
Noninterest income 4,907 5,840 5,243
Noninterest expense 11,353 12,202 11,299
Net income 9,492 9,323 8,666
Per common share (1) Net income per share:
- Basic 0.35 0.35 0.32
- Diluted 0.34 0.33 0.31
Cash dividends 0.275 0.275 0.239
Book value at period end 6.58 6.88 6.86
Market price at period end 26.88 25.00 22.83
At period end
Full time equivalent employees 465 477 468
Full service banking offices 53 53 51
Performance ratios
Return on average assets 1.56 % 1.55 1.43
Return on average equity (2) 22.48 22.45 21.61
Efficiency (3) 38.33 41.31 39.03
Net interest spread (TE) 3.60 3.49 3.30
Net interest margin (TE) 4.07 3.94 3.79
Dividend payout ratio 77.83 79.42 73.87
Capital ratios at period end (4)
Total equity to assets 7.02 6.98 6.77
Tier 1 risk adjusted capital 13.08 13.14 12.77
Total risk adjusted capital 14.37 14.43 14.06
Asset quality analysis at period end
Nonperforming loans to total loans 0.87 0.92 0.84
Nonperforming assets to total assets 0.58 0.62 0.76
Allowance for loan losses to total loans 4.20 4.16 4.17
Coverage ratio (5) 4.9 X 4.5 X 5.0 X
(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.
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FINANCIAL HIGHLIGHTS, Continued Page 2
Six Months Ended
06/30/99 06/30/98
Summary of operations
Net interest income (TE) $47,370 44,718
Provision for loan losses 3,013 2,930
Net securities transactions (1,077) 136
Noninterest income 10,747 9,765
Noninterest expense 23,555 22,828
Net income 18,815 17,044
Per common share (1) Net income per share:
- Basic 0.70 0.63
- Diluted 0.67 0.61
Cash dividends 0.550 0.478
Book value at period end 6.58 6.86
Market price at period end 26.88 22.83
Performance ratios
Return on average assets 1.56 % 1.43
Return on average equity (2) 22.47 21.37
Efficiency (3) 39.79 39.07
Net interest spread (TE) 3.54 3.37
Net interest margin (TE) 4.01 3.85
Dividend payout ratio 78.62 75.22
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CONSOLIDATED BALANCE SHEETS Page 3
(dollars in thousands)
06/30/99 12/31/98 06/30/98
ASSETS
Loans, net $1,269,893 1,268,328 1,257,767
Securities available for sale 713,174 717,410 605,415
Other short-term investments 0 24,979 0
Federal funds sold 293,000 358,000 445,000
Total earning assets 2,276,067 2,368,717 2,308,182
Cash and due from banks 42,230 41,950 35,185
Bank premises and equipment 15,775 17,022 17,547
Other assets 74,944 57,391 73,281
Total assets $2,409,016 2,485,080 2,434,195
LIABILITIES
Deposits:
Demand $151,142 154,358 140,672
Interest-bearing checking 257,300 266,027 238,403
Savings 672,855 660,376 663,962
Money Market 60,613 58,061 57,356
Certificates of deposit > $100 thou 115,277 139,310 128,481
Other time deposits 787,544 829,282 843,160
Total deposits 2,044,731 2,107,414 2,072,034
Short-term borrowings 142,178 147,924 129,478
Other liabilities 45,579 43,900 49,054
Total liabilities 2,232,488 2,299,238 2,250,566
SHAREHOLDERS' EQUITY 176,528 185,842 183,629
Total liabilities and
shareholders' equity $2,409,016 2,485,080 2,434,195
Number of common shares
outstanding, in thousands 26,836 26,792 26,763
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CONSOLIDATED STATEMENTS OF INCOME Page 4
(dollars in thousands, except per share data)
Three Months Ended
06/30/99 03/31/99 06/30/98
Interest income
Loans $26,466 26,560 27,805
Investments 10,950 10,890 9,713
Federal funds sold 4,182 4,216 6,296
Total interest income 41,598 41,666 43,814
Interest expense
Deposits 17,132 17,791 20,554
Borrowings 1,481 1,448 1,904
Total interest expense 18,613 19,239 22,458
Net interest income 22,985 22,427 21,356
Provision for loan losses 1,500 1,513 1,558
Net interest income after
provision for loan losses 21,485 20,914 19,798
Net securities transactions (657) (420) 104
Noninterest income 4,907 5,840 5,243
Noninterest expense 11,353 12,202 11,299
Income before income taxes 14,382 14,132 13,846
Income tax expense 4,890 4,809 5,180
Net income $9,492 9,323 8,666
Net income per share:
- Basic $0.35 0.35 0.32
- Diluted 0.34 0.33 0.31
Avg equivalent shares outstanding, in thousands:
- Basic 26,888 26,873 26,804
- Diluted 27,964 27,992 27,920
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CONSOLIDATED STATEMENTS OF INCOME Page 5
(dollars in thousands, except per share data)
Six Months Ended
06/30/99 06/30/98
Interest income
Loans $53,026 55,687
Investments 21,840 20,112
Federal funds sold 8,398 11,418
Total interest income 83,264 87,217
Interest expense
Deposits 34,923 40,742
Borrowings 2,929 3,471
Total interest expense 37,852 44,213
Net interest income 45,412 43,004
Provision for loan losses 3,013 2,930
Net interest income after
provision for loan losses 42,399 40,074
Net securities transactions (1,077) 136
Noninterest income 10,747 9,765
Noninterest expense 23,555 22,828
Income before income taxes 28,514 27,147
Income tax expense 9,699 10,103
Net income $18,815 17,044
Net income per share:
- Basic $0.70 0.63
- Diluted 0.67 0.61
Avg equivalent shares outstanding, in thousands:
- Basic 26,881 26,843
- Diluted 27,978 27,944
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CONSOLIDATED AVERAGE BALANCE SHEETS Page 6
(in thousands)
Three Months Ended
06/30/99 03/31/99 06/30/98
Total assets $2,433,144 2,442,857 2,438,826
Shareholders' equity 184,460 186,563 175,602
Total loans 1,324,286 1,319,010 1,306,509
Interest earning assets 2,356,714 2,356,900 2,341,430
Interest-bearing liabilities 2,058,334 2,069,330 2,078,532
Six Months Ended
06/30/99 06/30/98
Total assets $2,437,974 2,408,909
Shareholders' equity 185,506 175,763
Total loans 1,321,662 1,303,929
Interest earning assets 2,356,806 2,311,069
Interest-bearing liabilities 2,063,802 2,056,373
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