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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
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Date of Report (Date of earliest event reported): October 15, 2002
(October 15, 2002)
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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
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(Commission File Number) (IRS Employer Identification No.)
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5 Sarnowski Drive, Glenville, New York 12305
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (518) 377-3311
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1
TrustCo Bank Corp NY
Item 5. Other Events
On October 15, 2002, TrustCo Bank Corp NY ("Trustco") issued
two press releases with year to date and third quarter results
for the period ending September 30, 2002. 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 15, 2002, for
the period ending September
30, 2002, regarding year to
date and third quarter
results.
99(b) Press Release dated October
15, 2002, for the period
ending September 30, 2002,
regarding year to date and
third quarter results.
2
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: October 15, 2002
TrustCo Bank Corp NY
(Registrant)
By:/s/ Robert T. Cushing
----------------------------
Robert T. Cushing
Vice President and
Chief Financial Officer
3
Exhibits Index
The following exhibits are filed herewith:
Reg S-K Exhibit No. Description Page
- ------------------ ---------------------------- ----------
99(a) Highlights Press Release of 5
October 15, 2002, for the period
ending September 30, 2002,
regarding year to date and third
quarter results.
99(b) Press Release of October 15, 6-8
2002, for the period ending September
30, 2002, regarding year to date
and third quarter results.
4
TRUSTCO Exhibit 99(a)
Bank Corp NY News Release
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192 Erie Boulevard, Schenectady, New York, 12305
(518) 377-3311 Fax: (518) 381-3668
Subsidiary: Trustco Bank, N.A.
Trustco Savings Bank
Contact: Robert M. Leonard
Vice President
(518) 381-3693
Glenville, New York - October 15, 2002
FOR IMMEDIATE RELEASE:
TrustCo Bank Corp NY
(dollars in thousands, except per share data)
9/02 9/01
Three Months Ended September 30:
Net Income $ 13,291 11,591
Provision for Loan Losses 300 750
Average Equivalent Shares Outstanding:
Basic 72,499,000 71,164,000
Diluted 74,325,000 73,659,000
Net Income per Share:
Basic $ 0.183 0.163
Diluted 0.179 0.157
Nine Months Ended September 30:
Net Income $ 38,230 34,561
Provision for Loan Losses 1,120 3,365
Average Equivalent Shares Outstanding:
Basic 72,146,000 71,060,000
Diluted 74,403,000 73,555,000
Net Income per Share:
Basic $ 0.530 0.486
Diluted 0.514 0.470
Period End:
Total Assets $ 2,675,427 2,508,735
Total Nonperforming Loans 6,304 7,585
Total Nonperforming Assets 6,602 8,611
Allowance for Loan Losses 54,280 56,608
Allowance as a Percentage
of Total Loans 3.61% 3.65
5
Exhibit 99(b)
TRUSTCO
Bank Corp NY News Release
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192 Erie Boulevard, Schenectady, New York, 12305
(518) 377-3311 Fax: (518) 381-3668
Subsidiary: Trustco Bank, N.A.
Trustco Savings Bank
Contact: Robert M. Leonard
Vice President
(518) 381-3693
FOR IMMEDIATE RELEASE:
TRUSTCO ANNOUNCES RECORD THIRD QUARTER
AND YEAR TO DATE RESULTS
Glenville, New York - October 15, 2002
TrustCo Bank Corp NY (TrustCo, NASDAQ:TRST) today announced record earnings
results for the third quarter and year to date 2002. Net income for the third
quarter 2002 was $13.3 million or $0.179 diluted earnings per share, compared to
$11.6 million or $0.157 diluted earnings per share for the third quarter of
2001. The third quarter results represent increases of 14.7% and 14.0% in net
income and diluted earnings per share, respectively, for 2002 compared to 2001.
Net income for the nine months ended September 30, 2002 was $38.2 million or
$0.514 diluted earnings per share, compared to $34.6 million or $0.470 diluted
earnings per share, for the nine month period ended September 30, 2001. The year
to date results reflect increases of 10.6% and 9.4% in net income and diluted
earnings per share, respectively, for the nine months of 2002 compared to the
similar period of 2001.
Making the announcement was Robert A. McCormick, Chairman, President and Chief
Executive Officer. Mr. McCormick noted, "TrustCo's superior earnings results for
2002 are generated by the execution of our basic banking plan that delivers
superior quality service to our customers at a reasonable cost. I am confident
that for 2002 we will achieve our stated objective of a 26% return on equity and
we are well situated for increased growth in that area for the future." Return
on equity was 27.5% and 27.1% for the third quarter and year to date results for
2002, compared to 25.4% and 25.8% for the comparable period in 2001.
For the third quarter of 2002 TrustCo's efficiency ratio was 36.3% compared to
39.0% for the third quarter of 2001. The efficiency ratio for the nine months of
2002 was 37.1% compared to 39.5% for 2001. As McCormick noted, "TrustCo's
profitability and efficiency ratios rank among the banking industry best. Cost
containment is part of the philosophical fiber of this company."
6
Asset quality indicators continue to be strong during the quarter, with
non-performing loans as a percentage of total loans at September 30, 2002 of
0.42%. The allowance for loan losses was $54.3 million at September 30, 2002 and
represents 3.61% of loans outstanding. TrustCo continued its longstanding
philosophy of aggressive loan charge offs during the quarter. Third quarter net
loan charge offs were 0.13% of loans. By adhering to this strategy TrustCo
continues to improve the overall quality of its loan portfolio.
Taxable equivalent net interest income was $25.8 million for the third quarter
2002 compared to $25.4 million for the comparable period in 2001. For the nine
month period 2002 and 2001, taxable equivalent net interest income was $77.2
million and $75.8 million respectively. Mr. McCormick noted "Market interest
rates have continued to decline in response to global financial distress. This
has caused a reduction in the yields that we obtain on our loan and securities
portfolios. This trend also has resulted in an overall reduction in our net
interest margin by 34 basis points to 3.93% for the third quarter 2002 compared
to the third quarter 2001. In response, we have offset the reduction in the
yields by increasing the average balance of our earnings assets by $246.8
million for the third quarter 2002 compared to 2001. The net effect is that we
are earning less yield but we are earning it on a larger basis of assets. This
has resulted in our taxable equivalent net interest income for the third
quarters of 2002 and 2001 being virtually the same."
TrustCo Bank Corp NY is a $2.7 billion dollar bank holding company and through
its two subsidiary banks, Trustco Bank, National Association and Trustco Savings
Bank, operates 63 offices in Albany, Columbia, Dutchess, Greene, Montgomery,
Rennselaer, Rockland, Saratoga, Schenectady, Schoharie, Warren Washington and
Westchester Counties in New York, and Bennington County in Vermont. In addition
the bank operates a full service Trust Department that has $927 million 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.
Except for the 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 containing future events or performance and assumptions and other
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) changes in the regulatory
environment, and (5) 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 in the forward-looking
statements.
7
TRUSTCO BANK CORP NY
SCHENECTADY, NY
(dollars in thousands, except per share data)
Three Months Ended
09/30/2002 06/30/2002 09/30/2001
Summary of operations
Net interest income (TE) $25,817 $25,669 $25,422
Provision for loan losses 300 300 750
Net securities transactions 2,399 1,904 696
Noninterest income 4,465 5,831 5,312
Noninterest expense 11,422 13,717 12,363
Net income 13,291 12,571 11,591
Per common share
Net income per share:
- Basic 0.183 0.174 0.163
- Diluted 0.179 0.169 0.157
Cash dividends 0.150 0.150 0.130
Tangible Book value at period end 3.08 3.00 2.87
Market price at period end 10.58 13.17 11.95
At period end
Full time equivalent employees 469 468 479
Full service banking offices 63 60 57
Performance ratios
Return on average assets 1.92 % 1.85 1.83
Return on average equity (1) 27.50 26.65 25.44
Efficiency (2) 36.26 37.13 39.03
Net interest spread (TE) 3.61 3.58 3.81
Net interest margin (TE) 3.93 3.94 4.27
Dividend payout ratio 81.64 86.16 80.16
Capital ratios at period end (3)
Total equity to assets 7.54 6.92 7.28
Tier 1 risk adjusted capital 14.43 13.57 13.45
Total risk adjusted capital 15.71 14.86 14.74
Asset quality analysis at period end
Nonperforming loans to total loans 0.42 % 0.43 0.49
Nonperforming assets to total assets 0.25 0.25 0.34
Allowance for loan losses to total loans 3.61 3.68 3.65
Coverage ratio (4) 8.6 X 8.6 X 7.5
(1) Average equity excludes the effect of the market value adjustment for securities
available for sale.
(2) Calculated as noninterest expense (excluding ORE income/expense,goodwill amortization
and any nonrecurring charges) divided by taxable equivalent net interest income plus
noninterest income (excluding net securities transactions).
(3) Capital ratios exclude the effect of the market value adustment for securities
available for sale.
(4) Calculated as allowance for loan losses divided by total nonperforming loans.
TE = Taxable equivalent.
8
FINANCIAL HIGHLIGHTS, Continued
Nine Months Ended
09/30/2002 09/30/2001
Summary of operations
Net interest income (TE) $77,205 $75,839
Provision for loan losses 1,120 3,365
Net securities transactions 6,171 3,905
Noninterest income 15,181 15,910
Noninterest expense 37,532 37,564
Net income 38,230 34,561
Per common share
Net income per share:
- Basic 0.530 0.486
- Diluted 0.514 0.470
Cash dividends 0.450 0.391
Tangible Book value at period end 3.08 2.87
Market price at period end 10.58 11.95
Performance ratios
Return on average assets 1.89 % 1.87
Return on average equity (1) 27.05 25.82
Efficiency (2) 37.12 39.51
Net interest spread (TE) 3.61 3.77
Net interest margin (TE) 3.97 4.27
Dividend payout ratio 84.97 80.41
..CONSOLIDATED BALANCE SHEETS
(dollars in thousands)
09/30/2002 12/31/2001 09/30/2001
ASSETS
Loans, net $1,448,408 1,499,483 1,494,057
Securities available for sale 652,660 587,100 581,293
Federal funds sold and other short term investments 441,446 338,452 300,792
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Total earning assets 2,542,514 2,425,035 2,376,142
Cash and due from banks 65,172 60,121 52,818
Bank premises and equipment 19,606 18,312 18,762
Other assets 48,135 75,153 61,013
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Total assets $2,675,427 2,578,621 2,508,735
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LIABILITIES
Deposits:
Demand $212,795 195,390 194,067
Interest-bearing checking 318,383 295,514 292,820
Savings 719,243 649,081 634,995
Money Market 129,425 75,620 67,512
Certificates of deposit > $100 thou 118,980 128,887 131,720
Other time deposits 770,697 748,414 749,948
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Total deposits 2,269,523 2,092,906 2,071,062
Short-term borrowings 120,465 218,219 174,798
Long-term debt 472 624 697
Other liabilities 56,219 61,045 57,235
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Total liabilities 2,446,679 2,372,794 2,303,792
SHAREHOLDERS' EQUITY 228,748 205,827 204,943
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Total liabilities and
shareholders' equity $2,675,427 2,578,621 2,508,735
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Number of common shares
outstanding, in thousands 74,032 71,306 71,195
9
CONSOLIDATED STATEMENTS OF INCOME
(dollars in thousands, except per share data)
Three Months Ended
09/30/2002 06/30/2002 09/30/2001
Interest income
Loans 28,031 28,275 29,963
Investments 8,068 8,399 9,181
Federal funds sold and other short term investments 2,408 2,278 2,510
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Total interest income 38,507 38,952 41,654
Interest expense
Deposits 13,793 14,259 16,572
Borrowings 740 848 1,476
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Total interest expense 14,533 15,107 18,048
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Net interest income 23,974 23,845 23,606
Provision for loan losses 300 300 750
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Net interest income after
provision for loan losses 23,674 23,545 22,856
Net securities transactions 2,399 1,904 696
Noninterest income 4,465 5,831 5,312
Noninterest expense 11,422 13,717 12,363
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Income before income taxes 19,116 17,563 16,501
Income tax expense 5,825 4,992 4,910
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Net income $13,291 $12,571 11,591
===========================================================
Net income per share:
- Basic $0.183 $0.174 0.163
- Diluted $0.179 $0.169 0.157
Avg equivalent shares outstanding, in thousands:
- Basic 72,499 72,152 71,164
- Diluted 74,325 74,455 73,659
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10
CONSOLIDATED STATEMENTS OF INCOME
(dollars in thousands, except per share data)
Nine Months Ended
09/30/02 09/30/01
Interest income
Loans $85,026 89,752
Investments 24,933 28,654
Federal funds sold and other short term investments 6,563 9,534
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Total interest income 116,522 127,940
Interest expense
Deposits 42,339 50,974
Borrowings 2,453 5,765
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Total interest expense 44,792 56,739
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Net interest income 71,730 71,201
Provision for loan losses 1,120 3,365
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Net interest income after
provision for loan losses 70,610 67,836
Net securities transactions 6,171 3,905
Noninterest income 15,181 15,910
Noninterest expense 37,532 37,564
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Income before income taxes 54,430 50,087
Income tax expense 16,200 15,526
----------------------------------------
Net income $38,230 34,561
========================================
Net income per share:
- Basic $0.530 0.486
- Diluted $0.514 0.470
Avg equivalent shares outstanding, in thousands:
- Basic 72,146 71,060
- Diluted 74,403 73,555
========================================
CONSOLIDATED AVERAGE BALANCE SHEETS
(in thousands)
Three Months Ended
09/30/2002 06/30/2002 09/30/2001
Total assets $2,748,406 $2,720,741 2,508,747
Shareholders' equity $220,687 $213,899 205,455
Total loans $1,519,558 $1,526,323 1,532,377
Interest earning assets $2,636,263 $2,605,561 2,389,473
Interest-bearing liabilities $2,278,769 $2,259,223 2,072,349
Nine Months Ended
09/30/2002 09/30/2001
Total assets $2,700,526 2,473,293
Shareholders' equity $214,728 201,447
Total loans $1,527,560 1,506,161
Interest earning assets $2,585,750 2,361,629
Interest-bearing liabilities $2,239,073 2,042,865
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