UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the quarter ended Commission File Number 0-10592
September 30, 1995
TRUSTCO BANK CORP NY
(Exact name of registrant as specified in its charter)
NEW YORK 14-1630287
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
320 STATE STREET, SCHENECTADY, NEW YORK 12305
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code:
(518) 377-3311
_______________
Securities registered pursuant to Section 12(b) of the Act:
Name of exchange on
Title of each class which registered
________________ ________________
None None
Securities registered pursuant to Section 12(g) of the Act:
(Title of class)
Common
_______________________________________________________________
Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months
(or for such shorter period that the registrant was required
to file such reports), and (2) has been subject to such filing
requirements for the past 90 days. Yes.(x) No.( )
Indicate the number of shares outstanding of each of the issuer s
classes of common stock, as of the latest practicable date.
Number of Shares Outstanding
Class of Common Stock as of October 23, 1995
- --------------------- ----------------------
$1 Par Value 17,604,069
TrustCo Bank Corp NY
INDEX
Part I. FINANCIAL INFORMATION
PAGE
NO.
Item 1. Interim Financial Statements (Unaudited):
Consolidated Statements of Income for the
Three Months and Nine Months Ended
September 30, 1995 and 1994 1
Consolidated Statements of Financial Condition
as of September 30, 1995 and December 31, 1994 2
Consolidated Statements of Cash Flows for the
Nine Months Ended September 30, 1995 and 1994 3 - 4
Notes to Consolidated Interim Financial
Statements 5 - 6
Independent Auditors' Report 7
Item 2. Management's Discussion and Analysis 8 - 18
Part II. OTHER INFORMATION
Item 1. Legal Proceedings -- NONE
Item 2. Changes in Securities -- NONE
Item 3. Defaults Upon Senior securities -- NONE
Item 4. Submission of Matters to Vote of Security -- NONE
Item 5. Other Information -- NONE
Item 6. (a) Exhibits -- NONE
(b) Reports on Form 8-K
1. Filing on October 17, 1995 of two press
releases detailing third quarter and
year-to-date 1995 results.
<TABLE>
TRUSTCO BANK CORP NY
Consolidated Statements of Income (Unaudited)
<CAPTION>
(Dollars in Thousands)
3 Months Ended 9 Months Ended
Sept 30 Sept 30
1995 1994 1995 1994
------- ------- ------- -------
<S> <C> <C> <C> <C>
Interest income:
Interest and fees on loans..........................$ 27,035 23,961 79,598 68,737
Interest on U. S. Treasuries and agencies............ 8,132 6,301 20,067 19,455
Interest on states and political
subdivisions........................................ 795 255 2,049 723
Interest on mortgage-backed securities............... 2,112 2,485 6,636 6,942
Other................................................ 524 797 1,694 2,476
Interest on federal funds sold....................... 2,908 2,416 9,525 5,292
------- ------- ------- -------
Total interest income............................. 41,506 36,215 119,569 103,625
------- ------- ------- -------
Interest expense:
Interest on deposits:
Regular savings and NOW accounts.................... 7,493 6,417 20,953 19,099
Money market deposit accounts....................... 566 632 1,763 1,900
Certificates of deposit of $100,000 or more......... 1,347 668 3,514 1,820
Other time.......................................... 11,359 7,447 31,172 21,760
Interest on short-term borrowings.................... 642 125 1,019 356
Interest on long-term debt........................... --- 53 69 142
------- ------- ------- -------
Total interest expense............................. 21,407 15,342 58,490 45,077
------- ------- ------- -------
Net interest income................................ 20,099 20,873 61,079 58,548
Provision for loan losses............................. 3,120 2,778 9,738 6,491
------ ------ ------ ------
Net interest income after provision
for loan losses................................... 16,979 18,095 51,341 52,057
------ ------ ------ ------
Noninterest income:
Trust department income.............................. 1,195 1,211 3,638 3,650
Fees for other services to customers................. 1,808 1,626 5,164 5,338
Net gain (loss) on securities available for sale..... 141 (2,479) 769 (6,351)
Other................................................ 503 480 1,511 1,113
----- ----- ------ ------
Total noninterest income............................ 3,647 838 11,082 3,750
----- ----- ------ ------
Noninterest expenses:
Salaries and employee benefits....................... 4,949 4,594 14,742 13,692
Net occupancy expense................................ 1,913 785 3,590 2,448
Equipment expense.................................... 851 770 2,433 2,396
FDIC insurance expense............................... (116) 1,028 1,918 3,042
Professional services................................ 894 605 2,609 1,849
Other real estate expenses........................... 547 131 2,853 785
Other................................................ 1,657 1,686 6,163 5,604
------ ----- ------ ------
Total noninterest expenses.......................... 10,695 9,599 34,308 29,816
------ ----- ------ ------
Income before taxes................................ 9,931 9,334 28,115 25,991
Applicable income taxes............................... 3,335 3,420 9,508 9,305
----- ----- ------ ------
Net income.......................................$ 6,596 5,914 18,607 16,686
===== ===== ====== ======
Earnings per Common Share:
Net income.......................................$ 0.36 0.33* 1.03 0.93*
====== ====== ====== ======
Average equivalent shares outstanding (000s omitted).. 18,119 17,924 17,984 17,872
====== ====== ====== ======
*Per share data adjusted for 6 for 5 stock split in August, 1995
See accompanying notes to consolidated interim financial statements.
</TABLE>
<TABLE>
TRUSTCO BANK CORP NY
Consolidated Statements of Financial Condition
<CAPTION>
(Dollars in Thousands)
09/30/95 12/31/94
(Unaudited)
Assets: --------- ---------
<S> <C> <C>
Cash and due from banks................................$ 44,524 52,479
Federal funds sold...................................... 190,000 263,000
--------- ---------
Total cash and cash equivalents....................... 234,524 315,479
Securities available for sale:
U. S. Treasuries and agencies.......................... 328,931 102,919
States and political subdivisions...................... 18,715 ---
Other.................................................. 25,540 14,539
--------- ---------
Total securities available for sale................... 373,186 117,458
--------- ---------
Investment securities:
U. S. Treasuries and agencies.......................... 110,421 145,542
Mortgage-backed securities............................. 123,830 143,082
States and political subdivisions...................... 43,179 44,222
Other.................................................. 15,014 15,012
--------- ---------
Total investment securities........................... 292,444 347,858
--------- ---------
Loans:
Commercial............................................. 235,195 239,378
Residential mortgage loans............................. 741,141 681,192
Home equity line of credit............................. 200,162 207,313
Installment loans...................................... 35,787 35,875
--------- ---------
Total loans...........................................1,212,285 1,163,758
Less: --------- ---------
Allowance for loan losses.............................. 46,775 38,851
Unearned income........................................ 1,931 1,969
--------- ---------
Net loans..............................................1,163,579 1,122,938
Bank premises and equipment............................. 24,802 23,877
Real estate owned....................................... 3,051 5,080
Other assets............................................ 44,864 42,987
--------- ---------
Total assets........................................$2,136,450 1,975,677
========= =========
Liabilities:
Deposits:
Demand................................................$ 105,739 93,496
Regular savings and NOW accounts....................... 848,068 911,629
Money market deposit accounts.......................... 71,021 92,965
Certificates of deposit (in denominations of
$100,000 or more)..................................... 87,372 62,511
Other time............................................. 785,722 629,230
--------- ---------
Total deposits........................................1,897,922 1,789,831
Short-term borrowings................................... 60,607 12,713
Accrued expenses and other liabilities.................. 28,328 30,300
Long-term debt.......................................... --- 3,550
--------- ---------
Total liabilities.....................................1,986,857 1,836,394
--------- ---------
Shareholders' equity
Capital stock par value $1; 25,000,000 shares authorized
18,100,715 and 15,018,448 shares issued
September 30, 1995 and December 31, 1994, respectively 18,101 15,018
Surplus................................................. 115,842 118,352
Undivided profits....................................... 12,650 6,948
Net unrealized gain/(loss) on securities
available for sale.................................... 4,247 (41)
Treasury stock at cost - 496,646 and 401,022 shares at
September 30, 1995 and December 31, 1994, respectively (1,247) (994)
--------- ---------
Total shareholders' equity............................ 149,593 139,283
--------- ---------
Total liabilities and shareholders' equity...........$2,136,450 1,975,677
========= =========
See accompanying notes to consolidated interim financial statements.
</TABLE>
<TABLE>
TRUSTCO BANK CORP NY
Consolidated Statements of Cash Flows (Unaudited)
<CAPTIOM>
(Dollars in Thousands)
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
NINE MONTHS ENDED September 30, 1995 1994
-------- --------
<S> <C> <C>
Cash flows from operating activities:
Net income..............................................$ 18,607 16,686
-------- --------
Adjustments to reconcile net income to net cash provided
by operating activities:
Depreciation and amortization.......................... 2,831 1,711
Provision for loan losses.............................. 9,738 6,491
Loss on sale of securities available for sale.......... 404 11,996
Gain on sale of securities available for sale.......... (1,173) (5,645)
Increase in taxes receivable........................... (4,847) (2,693)
Increase in interest receivable........................ (4,241) (408)
Increase in interest payable........................... 806 61
(Increase)decrease in other assets...................... 6,377 (2,578)
Increase(decrease) in accrued expenses................. (3,599) 3,153
-------- --------
Total adjustments.................................... 6,296 12,088
-------- --------
Net cash provided by operating activities................ 24,903 28,774
-------- --------
Cash flows from investing activities:
Proceeds from sales of securities available for sale... 181,092 786,929
Purchase of securities available for sale.............. (428,926) (613,887)
Proceeds from maturities of securities avail for sale.. 275 32,557
Proceeds from maturities of investment securities ..... 58,710 37,434
Purchase of investment securities...................... (3,338) (129,264)
Net increase in loans.................................. (56,225) (80,373)
Proceeds from sales of real estate owned............... 3,139 6,218
Capital expenditures................................... (1,256) (1,060)
-------- --------
Net cash provided by/(used in) investing activities.. (246,529) 38,554
-------- --------
Cash flows from financing activities:
Net increase in deposits............................... 108,091 11,521
Net increase(decrease) in short-term debt.............. 47,894 (4,391)
Repayment of long-term debt............................ (3,550) ---
Proceeds from issuance of long-term debt............... ---- 200
Proceeds from issuance of common stock................. 573 838
Purchase of treasury stock............................. (253) ---
Dividends paid......................................... (12,084) (9,943)
-------- --------
Net cash provided by/(used in) financing activities.. 140,671 (1,775)
-------- --------
Net increase(decrease) in cash and cash equivalents...... (80,955) 65,553
Cash and cash equivalents at beginning of period......... 315,479 199,977
-------- --------
Cash and cash equivalents at end of period..............$ 234,524 265,530
======== ========
See accompanying notes to consolidated interim financial statements. (Continued)
</TABLE>
<TABLE>
TRUSTCO BANK CORP NY
Consolidated Statements of Cash Flows (Unaudited) Continued
<CAPTION>
(Dollars in Thousands)
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
NINE MONTHS ENDED September 30, 1995 1994
-------- --------
<S> <C> <C>
Interest paid.........................................$ 57,684 45,016
Income taxes paid...................................... 14,355 11,998
Transfer of loans to real estate owned................. 5,846 6,789
Increase(decrease) in dividends payable................ 821 347
Reclassification of trading securities to securities
available for sale upon adoption of Statement 115..... --- 2,106
Change in unrealized (gain)loss on securities
available for sale-gross.............................. (7,358) 14,916
Change in deferred tax effect on unrealized gain(loss)
on securities available for sale...................... 3,070 (5,449)
Reclassification of investment securities to securities
available for sale upon adoption of Statement 115..... --- 384,417
Transfer of securities available for sale to
investment securities, amortized cost equalled
market value.......................................... --- 213,199
Unrealized gain on securities transferred to
securities available for sale on January 1, 1994...... --- 14,037
Deferred tax on unrealized gain on securities
available for sale on January 1, 1994................. --- 5,816
Transfer of building from other real estate to premises 2,500 ---
See accompanying notes to consolidated interim financial statements.
</TABLE>
TrustCo Bank Corp NY
Notes to Consolidated Interim Financial Statements
(Unaudited)
1. Financial Statement Presentation
In the opinion of the management of TrustCo Bank Corp NY (the
Company), the accompanying unaudited Consolidated Interim
Financial Statements contain all adjustments necessary to present
fairly the financial position as of September 30, 1995, the
results of operations for the three month and nine month periods
ended September 30, 1995 and 1994, and cash flows for the nine
month periods ended September 30, 1995 and 1994. The
accompanying Consolidated Interim Financial Statements should be
read in conjunction with the TrustCo Bank Corp NY year-end
Consolidated Financial Statements, including notes thereto, which
are included in TrustCo Bank Corp NY's 1994 Annual Report to
Shareholders on Form 10-K.
2. Effective January 1, 1995, the Company adopted Statement of
Financial Accounting Standards No. 114 "Accounting by Creditors
for Impairment of a Loan" (SFAS No. 114). SFAS No. 114 was
amended by Statement of Financial Accounting Standards No. 118
"Accounting by Creditors for Impairment of a Loan-Income
Recognition and Disclosure" (SFAS No. 118). The new accounting
standards prescribe recognition criteria for loan impairment and
measurement methods for certain impaired loans and loans whose
terms are modified in a troubled debt restructuring subsequent to
the adoption of these new standards. A loan is considered
impaired when it is probable that the borrower will be unable to
repay the loan according to the original contractual terms of the
loan agreement. These new standards are applicable principally
to the commercial and commercial real estate loans, however,
certain provisions dealing with restructured loans also apply to
the retail loan products. Once a loan is identified as impaired,
the new accounting standard requires measurement of the loan at
the lower of fair value of the anticipated proceeds to be
received or the recorded investment in the loan. The accounting
standard provides certain guidelines as to how fair value is to
be determined. As of January 1, 1995, the Company has adopted
the provisions of SFAS Nos. 114 and 118 and has provided the
required disclosures. The effect of adoption was not material to
the consolidated financial statements.
In addition, SFAS No. 114 substantially modified the definition
of "in-substance foreclosure" loans. Consequently certain loans
identified at year-end 1994 as being in-substance foreclosure
loans and classified as real estate owned have been reclassified
on January 1, 1995 to the loan portfolio. At January 1, 1995,
$9.2 million of loans previously included in real estate owned
have been reclassified to the loan balance. For all prior
periods presented, amounts related to in-substance foreclosures
have also been reclassified. These reclassifications did not
impact the Company's consolidated financial condition or results
of operations. Prior to the adoption of SFAS Nos. 114 and 118,
in-substance foreclosed properties included those properties
where the borrower had little or no remaining equity in the
property considering its fair value; where repayment was only
expected to come from the operation or sale of the property; and
where the borrower has effectively abandoned control of the
property or it was doubtful that the borrower would be able to
rebuild equity in the property.
At September 30, 1995, there are $9.3 million of commercial,
commercial real estate and commercial mortgage loans that have
been placed on nonaccrual status and are therefore classified as
impaired loans. In addition, there were newly restructured
retail loans totalling $557 thousand that as of September 30,
1995, are identified as impaired loans. None of the allowance
for loan losses has been allocated to these impaired loans
because of the significant charge offs that have been taken in
prior years and the fact that the collateral values support the
loan balances. All impaired loans are on a nonaccrual status and
therefore no interest income is recorded on these loans. (Except
for the restructured loans for which interest income is accrued
based upon the restructured loan term.) Cash payments received
are normally applied to reduce the outstanding loan balance on
the impaired loans (exclusive of restructured loans).
During the first nine months of 1995, the average balance of
impaired loans was $10.1 million and there was $226 thousand
interest income recorded on these loans in the accompanying
consolidated statement of income.
Transactions in the allowance for loan losses account are
summarized as follows:
Nine month ended September 30,
1995 1994
Balance at beginning of year $38,851 $34,087
Provision for loan losses 9,738 6,491
Loans charged off (5,105) (2,511)
Recoveries of loans previously
charged off 3,291 1,166
______ ______
Balance at end of period $46,775 $39,233
INDEPENDENT AUDITORS' REPORT
The Board of Directors and Shareholders
TrustCo Bank Corp NY:
We have reviewed the consolidated statement of financial
condition of TrustCo Bank Corp NY and subsidiaries (the Company)
as of September 30, 1995, and the related consolidated statements
of income for the three-month and nine-month periods ended
September 30, 1995 and 1994, and the consolidated statements of
cash flows for the nine-month periods ended September 30 1995 and
1994. These consolidated financial statements are the
responsibility of the Company's management.
We conducted our review in accordance with standards established
by the American Institute of Certified Public Accountants. A
review of interim financial information consists principally of
applying analytical procedures to financial data and making
inquiries of persons responsible for financial and accounting
matters. It is substantially less in scope than an audit
conducted in accordance with generally accepted auditing
standards, the objective of which is the expression of an opinion
regarding the financial statements taken as a whole.
Accordingly, we do not express such an opinion.
Based on our review, we are not aware of any material
modifications that should be made to the consolidated financial
statements referred to above for them to be in conformity with
generally accepted accounting principles.
We have previously audited, in accordance with generally accepted
auditing standards, the consolidated statement of financial
condition of TrustCo Bank Corp NY and subsidiaries as of December
31, 1994 and the related consolidated statements of income,
changes in shareholders' equity, and cash flows for the year then
ended (not presented herein); and in our report dated January 27,
1995, we expressed an unqualified opinion on those consolidated
financial statements. In our opinion, the information set forth
in the accompanying consolidated statement of financial condition
as of December 31, 1994, is fairly presented, in all material
respects, in relation to the consolidated statement of financial
condition from which it has been derived.
As discussed in note 2 to the consolidated interim financial
statements, effective January 1, 1995, the Company adopted the
provisions of the Financial Accounting Standards Board's
Statement of Financial Accounting Standards No. 114, "Accounting
by Creditors for Impairment of a Loan," and Statement of
Financial Accounting Standards No. 118, "Accounting by Creditors
for Impairment of a Loan -- Income Recognition and Disclosures"
which prescribe recognition criteria for loan impairment and
measurement methods for certain impaired loans and loans whose
terms are modified in a troubled debt restructuring subsequent to
the adoption of these statements.
/s/KPMG Peat Marwick LLP
______________________________
KPMG Peat Marwick LLP
Albany, New York
October 13, 1995
TrustCo Bank Corp NY
Management's Discussion and Analysis
September 30, 1995
The review that follows focuses on the factors affecting the
financial condition and results of operations of TrustCo Bank
Corp NY ("TrustCo" or "Company") during the three month and nine
month periods ended September 30, 1995, with comparisons to 1994
as applicable. Net interest income and net interest margin are
presented on a fully taxable equivalent basis in this discussion.
The Consolidated Interim Financial Statements and related notes,
as well as the 1994 Annual Report to Shareholders, should be read
in conjunction with this review. Certain amounts in years prior
to 1995 have been reclassified to conform to the 1995
presentation.
Overview
- --------
TrustCo recorded net income of $6.6 million, or $0.36 per share
for the three month period ended September 30, 1995, as compared
to $5.9 million and $0.33 per share in the same period in 1994.
All per share data information has been restated for the 6 for 5
stock split effective August 1995.
For the nine months of 1995, TrustCo recorded net income of $18.6
million or $1.03 per share compared to $ 16.7 million and $0.93
per share in 1994.
The financial highlights for TrustCo are as follows:
-- 8% increase in assets at September 30, 1995, compared
to year end 1994,
-- third quarter efficiency ratio of 42.2% and a year to
date efficiency ratio of 43.2%,
-- increase in the allowance for loan losses to $46.8
million at September 30, 1995, representing 3.86% of
loans outstanding, and
-- a return on average equity of 17.6% for the year 1995,
and 18.4% for the third quarter.
TrustCo calculates the return on average equity excluding the
effect of the market value adjustment for securities available
for sale.
In addition, the following events affected the 1995 net income
during the year or during the quarter:
-- increase in the year to date net interest margin from
4.14% in 1994 to 4.23 in 1995. The net interest margin
for the third quarter decreased from 4.42% in 1994 to
4.04% in 1995,
-- increase in the provision for loan losses by $300
thousand for the quarter and $3.2 million for the year
1995 compared to 1994,
-- security gains of $100 thousand during the quarter
versus security losses of $2.5 million for the third
quarter of 1994. For the entire year of 1995 security
gains were $800 thousand compared to security losses of
$6.4 million in 1994, and
-- increase in noninterest expense by $1.1 million during
the quarter and by $4.5 million for the entire year of
1995 compared to 1994.
Asset/Liability Management
- --------------------------
The Company strives to generate superior earnings capabilities
through a mix of core deposits funding a prudent mix of earning
assets. This is, in its most fundamental form, the essence of
asset/liability management. Additionally, TrustCo attempts to
maintain adequate liquidity and reduce, to an acceptable level,
the sensitivity of net interest income to changes in interest
rates while enhancing profitability both on a short-term and
long-term basis.
Earning Assets
- --------------
The average balance of interest earning assets increased $130
million, to $2.06 billion during the third quarter of 1995
compared to 1994. The average yield earned on these assets was
8.17% in 1995 and 7.58% in 1994. For the nine month periods, the
average balance of interest earning assets grew to $1.97
billion, an increase of $49 million from the average balance in
1994 of $1.92 billion. Included in the tables "Distribution of
Assets, Liabilities and Shareholders' Equity; Interest Rates and
Interest Differential" is a detailed breakdown of TrustCo's
average interest earning assets and interest bearing liabilities
for the three month and nine month periods ended September 30,
1995 and 1994. The remainder of this discussion will utilize
average balances for 1995 and 1994 as detailed in the enclosed
tables.
Loans: During the third quarter, the average balance of loans
increased to $1.20 billion, an increase of $64 million from the
average balance of 1.13 billion in the third quarter of 1994.
The yield earned on the loan portfolio was 9.06% in 1995 compared
to 8.49% in 1994. Interest income earned on the loan portfolio
increased to $27.2 million for the third quarter of 1995 compared
to $24.1 million in 1994. Of the $3.1 million increase in the
income on the loan portfolio, approximately one third was due to
the effect of the change in balances and the remainder was a
result of the increase in rates. The residential mortgage loan
portfolio increased by 9% during the third quarter of 1995 to
$725.8 million compared to the $663.7 million in the third
quarter of 1994. Likewise, the average yield on the residential
mortgage loan portfolio increased from 8.13% in 1994 to 8.42% in
1995. The combination of the increase in the average balance and
the increase in the yield resulted in a $1.8 million increase in
the interest income on the residential mortgage loan portfolio.
The increase in the average balance of the residential mortgage
loans is a result of TrustCo's aggressive marketing of this loan
product coupled with the low closing costs the Company charges to
customers. TrustCo capitalizes on the fact that loans are
originated for portfolio and are not originated with the
intention of selling the loan into the secondary markets and
therefore all decisions with respect to the loans are made
locally.
The changes noted during the third quarter were also noted in the
year to date results, with the total average balance of loans
increasing $65 million and the average yield increasing 76 basis
points. Also as noted during the third quarter of 1995, the
primary increase in the interest income on loans is derived from
the residential loan portfolio. However, also reflected in the
year to date results is an increase in the interest income on
commercial loans of $2.1 million and on home equity lines of
credit of $3.2 million. A significant percentage of the loans in
these portfolios have interest rates tied to the prime rate and
therefore the increase in the prime interest rates during 1994
and 1995 were the primary factors affecting the increase in
interest income on these loans.
TrustCo is a retail oriented institution, and as such, stresses
the importance of consumer oriented products such as the
residential mortgage loan, home equity loan and credit card
portfolios. Each of these areas is an important contributor to
profitability at TrustCo, and is a focus of continued marketing
and product development so as to develop increases in the
outstanding balances. The third quarter and the year to date
results reflect this focus. TrustCo aggressively pursues the
fixed rate residential mortgage loan market. The Company has a
long history of experience in underwriting loans in this market
territory and is confident that the average life of these loans
is significantly shorter than contractual maturity. This asset
portfolio is an excellent investment in relation to the core
deposit base that TrustCo has attracted.
Securities available for sale: During the third quarter the
average balance of securities available for sale increased to
$357.3 million, a 38% increase compared to the 1994 average
balance. The average yield on this portfolio increased to 7.30%
in 1995 compared to 6.72% in 1994. The combination of the
increases in average balance and yield resulted in an increase
in interest income of $2.2 million, 86% of which is the result of
the balance change.
For the nine month results, the average balance decreased by
$165.5 million offset by an increase in the average yield to
7.45%. The decreased balances between 1994 and 1995 are the
effect of the transfers made in the first half of 1995 between
the available for sale and the investment securities portfolio
and the effect of security sales and maturities.
Investment securities: The average balance of investment
securities during the third quarter of 1995 was $305.8 million, a
decrease of $21 million from the average balance in 1994. The
average yield on this portfolio increased to 7.18% from 6.98% in
1994. The increase in the average yield did not offset the
effect of the reduction in the average balances thereby causing a
$200 thousand reduction in interest income from the investment
securities portfolio.
During the nine month period 1995 the average balance of
investment securities increased to $328.1 million from the 1994
average balance of $215.6 million. The yields during these two
time periods also increased from 6.71% in 1994 to 7.16% in 1995.
Federal funds sold: The third quarter average balance was $ 196.9
million in 1995 and $207.8 million in 1994. The average yield
earned on these balances was 5.86% in 1995 and 4.61% in 1994.
The increase in the yield is a direct result of increases by the
Federal Reserve Board in establishing the target federal funds
rate.
For the year to date results, the average balance of federal
funds sold was $214.3 million in 1995 and $177.1 million in 1994
with the average yield being 5.94% in 1995 and 3.99% in 1994.
Income from earning assets: Income from earning assets increased
$5.5 million for the third quarter of 1995 versus 1994.
Increases in rates accounted for approximately three quarters of
the change. On a year to date basis, income from earning assets
increased by 16% to $121.1 million .
Funding Opportunities
- ---------------------
TrustCo utilizes various funding sources to support its earning
assets portfolio. The vast majority of the funding comes from
traditional deposit vehicles such as regular savings, NOW and
time deposits.
Total interest bearing liabilities increased during the quarter
to $1.85 billion from $1.75 billion during the third quarter of
1994. Likewise, the yield on these liabilities increased during
the quarter to quarter comparison from 3.47% in 1994 to 4.59% in
1995. The combination of the increase in the average balance and
the increase in the yield resulted in a increase in total
interest expense to $21.4 million from $15.3 million during the
third quarter of 1994. Within the deposit category, the
significant trend during the quarters was the movement of
balances from regular savings and NOW accounts to the certificate
of deposit categories. In response to this deposit trend TrustCo
offered a significant interest premium on savings accounts. The
result has been that the balances of regular savings and NOW
accounts have stabilized and new funds have been attracted into
all deposit categories. The effect of this strategy is an
increase in the cost of overall deposits which management
believes is outweighed by the deposit balances gathered.
The trend noted in the third quarter is also evident in the year
to date results. Average interest bearing liabilities for the
year 1995 were $1.78 billion up from $1.74 billion in 1994. The
average yield for 1995 is 4.40% and 3.46% in 1994.
Another positive trend that is occurring is the growth of the
demand deposit balances both during the quarter and year to date.
For the third quarter, the average balance of demand deposits was
$101.1 million an increase of $7.0 million over the third quarter
of 1994. Likewise for the year, the average balance of demand
deposits has increased $2.8 million.
Net Interest Income
- -------------------
The taxable equivalent net interest income was $20.7 million for
the 1995 third quarter and $21.2 million for same period in 1994.
The net interest margin for the third quarter was 4.04% in 1995
and 4.42% in 1994. As discussed in the previous sections, the
growth in assets was offset by the change in the interest rates
paid on deposits, thereby causing the reduction in the net
interest income during the quarter. For the year 1995, the net
interest income is $62.6 million as compared to $59.7 million in
1994 and the net interest margins were 4.23% in 1995 and 4.14% in
1994. The same trends as noted during the quarter are also
affecting the year to date balances but the magnitude of the rate
change is not as severe.
Nonperforming Assets
- --------------------
Nonperforming assets include nonperforming loans which are those
loans in a nonaccrual status. Loans that have been restructured
and loans that are past due 90 days or more and still accruing
interest. Also included in the total nonperforming assets are
foreclosed real estate properties which are categorized as Real
Estate Owned.
As noted in the footnotes to the Consolidated Interim Financial
Statements, TrustCo adopted the provisions of Statement of
Financial Accounting Standards No.114 "Accounting by Creditors
for Impairment of a Loan" (SFAS No. 114) and Statement of
Financial Accounting Standards No. 118 "Accounting by Creditors
for Impairment of a Loan-Income Recognition and Disclosure" (SFAS
No.118) effective as of January 1, 1995. The enclosed interim
consolidated financial statements, including prior periods, have
been presented in accordance with SFAS No. 114 and 118, the
effect of which was not material. This new accounting
requirement changes the identification, measurement and reporting
of impaired loans and loans whose terms have been modified in a
troubled debt restructuring. SFAS No. 114 defines an impaired
loan as one in which the creditor believes it is probable that
the borrower will be unable to repay the loan according to the
original contractual terms of the loan. This accounting
standard is applicable principally to commercial and commercial
real estate loans, however, certain provisions dealing with
restructured loans also apply to the retail loan products. Once
a loan has been defined as impaired, the Company is required to
measure the fair value of the anticipated cash flow from this
loan using the interest rate originally stipulated in the loan
agreement. Any difference between this calculated amount and the
recorded balance of the loan has to be earmarked as an allocation
of the allowance for loan losses.
SFAS No. 114 significantly modified the definition of loans to be
identified as "in-substance" real estate owned. As required by
SFAS No. 114, a loan is identified as "in-substance" real estate
owned when the bank has taken possession of the collateral
regardless of whether formal foreclosure proceedings have taken
place. In the past, the definition was relatively broad and
several properties were classified as being in-substance real
estate owned that, under the provisions of SFAS No. 114, will not
be so classified. Therefore, for presentation purposes, the
enclosed financial information has been reclassified in
accordance with these new accounting definitions.
For TrustCo, the definition of impaired loans are those
commercial and commercial real estate loans on a nonaccrual
status and new restructured loans ( loans that were classified as
restructured loans at the time SFAS No. 114 was adopted are not
classified as impaired loans as long as the borrower is in
compliance with the restructured loan terms). The following will
describe the nonperforming assets of TrustCo as of September 30,
1995.
Nonperforming Loans: Total nonperforming loans increased by $3.4
million from the June 30, 1995 balance of $13.3 million to the
balance at September 30, 1995 of $16.7 million. Likewise as
compared to year end 1994, the total nonperforming loans
increased by $5.0 million. The increase since June 30, 1995 is
the result of $ 7.6 million of new loans identified as
nonperforming, third quarter charge offs of $1.2 million, $500
thousand of loans transferred to Real Estate Owned and $2.3
million of loan payoffs. Nonaccrual loans are $12.8 million at
September 30, 1995, an increase of $2.4 million since the
previous quarter. Loans past due 90 days and still accruing
interest are $2.7 million at September 30, 1995 as compared to
$1.6 million at June 30, 1995. The overall increase in
nonperforming loans is primarily centered in the commercial
mortgage loan area where three properties have been identified as
either nonaccrual or past due 90 days or more during the third
quarter.
Total commercial, commercial real estate and real estate loans
secured by commercial properties that have been identified as
impaired loans at September 30, 1995 totaled $9.3 million and
together with the newly restructured retail loans of $557
thousand represents the Company's impaired loans. Of the total
nonperforming loans of $16.7 million, $9.9 million have been
identified as impaired therefore leaving $6.8 million of loans
that are nonperforming but do not meet the definition of being an
impaired loan. These are the nonperforming retail loan products
and the commercial loan types that are past due greater than 90
days and still accruing interest, all of which TrustCo does not
consider to be impaired loans.
As to additional risk elements in the loan portfolio at September
30, 1995, TrustCo had $3.5 million of nonaccrual residential
mortgage loans compared to $2.9 million at June 30, 1995. In
addition there have been $3.2 million of commercial loan charge
offs, $580 thousand of installment loan charge offs and $1.3
million of residential mortgage loan charge offs during the first
nine months of 1995.
Real Estate Owned: Total real estate owned at September 30, 1995
was $3.1 million, down $1.2 million from the balance at June 30,
1995. The decrease in the balances between the two time periods
is due to the sale of a single property for approximately $1
million. Also during the quarter $750 thousand of charge offs
were taken and $ 600 thousand of new properties were transferred
to the portfolio of real estate owned during the quarter.
Allowance for Loan Losses: The balance of the allowance for loan
losses is maintained at a level that is, in management's
judgment, representative of the amount of the risk inherent in
the loan portfolio, given past, present and expected future
conditions.
At September 30 ,1995 the allowance for loan losses was $46.8
million. This allowance represents a reserve coverage of 2.8
times the nonperforming loans at September 30, 1995 compared to
3.3 times coverage at June 30, 1995. As a percentage of loans
outstanding the allowance was 3.86% at September 30, 1995, 3.70%
at June 30,1995 and 3.42% at September 30, 1994.
The provision charged to expense for the third quarter of 1995
was $3.1 million compared to $2.8 million for the comparable
period in 1994. For the nine months of 1995 the provision
charged to expense was $9.7 million compared to $6.5 million in
1994.
Liquidity and Interest Rate Sensitivity
- ---------------------------------------
TrustCo seeks to obtain favorable sources of funding and to
maintain prudent levels of liquid assets in order to satisfy
varied liquidity demands. TrustCo's earnings performance and
strong capital position enable the Company to raise funds easily
in the marketplace and to secure new sources of funding. The
Company actively manages its liquidity through target ratios
established under its liquidity policy. Continual monitoring of
both historical and prospective ratios allows TrustCo to employ
strategies necessary to maintain adequate liquidity. Management
has also defined various degrees of adverse liquidity situations
which could potentially occur, and has prepared appropriate
contingency plans should such a situation arise.
Noninterest Income
- ------------------
Total noninterest income was $3.6 million for the third quarter
of 1995 compared to $800 thousand for the comparable period in
1994. Without the effect of security transactions the figures
for 1995 would be $3.5 million and for 1994 would amount to $3.3
million.
For the nine months of 1995 total noninterest income was $11.1
million compared to $3.8 million in 1994. Again without the
effects of security transactions the balances would be $10.3
million in 1995 and $10.1 million in 1994.
Noninterest Expense
- -------------------
Total noninterest expense amounted to $10.7 million for the third
quarter of 1995 compared to $9.6 million in 1994. As a result of
the FDIC insurance fund reaching a full funding level on a
national basis, TrustCo received a refund of approximately $1.1
million during the quarter. Also during the quarter occupancy
expense increased by $1.1 million due to write offs taken on
certain properties.
On a year to date basis total noninterest expense amounted to
$34.3 million in 1995 and $29.8 million in 1994. The principal
reasons for the year to date increase are an increase of $2.1
million in other real estate expenses, the increase in occupancy
expense as noted during the third quarter, an increase of $1.1
million in salaries and benefits, offset by the reduction in FDIC
premiums also as noted during the third quarter.
Income Taxes
- ------------
In the third quarter of 1995 and 1994, TrustCo recognized income
tax expense of $3.3 million and $3.4 million respectively. This
resulted in an effective tax rate of 33.6% in 1995 and 36.6% in
1994. The decrease in the effective tax rate between 1994 and
1995 was the result of the increased amount of tax exempt income
for 1995 compared to 1994.
Similarly, for the nine month period of 1995, total tax expense
was $9.5 million compared to $9.3 million in 1994. Effective tax
rates for the nine month periods are 33.8% in 1995 and 35.8% in
1994.
Capital Resources
- -----------------
Consistent with its long-term goal of operating a sound and
profitable financial organization, TrustCo strives to maintain
strong capital ratios. New issues of equity securities have not
been required since, traditionally, most of its capital
requirements are met through the net income retained on an annual
basis. Previously, TrustCo has stated its intention to open 3 to
5 new branch offices each year for the next several years. These
new branches and the related deposit growth anticipated from
these locations will not require additional capital beyond that
which is already existing within the Company or that will be
developed and retained in the coming years.
Total shareholders' equity at September 30, 1995 was $149.6
million, up $10.3 million from year end 1994. TrustCo's board
of directors declared a cash dividend of $0.275 per shared during
the quarter and also declared a 6 for 5 stock split.
The Company achieved the following ratios as of September 30,
1995 and 1994:
Minimum
September 30, September 30, Regulatory
1995 1994 Guidelines
_____________ _____________ __________
Total equity
to assets 7.00% 6.87% 3.00%
Tier 1 risk
adjusted capital 12.27% 12.01% 4.00%
Total risk
adjusted capital 13.55% 13.29% 8.00%
<TABLE>
TrustCo Bank Corp NY
Management's Discussion and Analysis
STATISTICAL DISCLOSURE
I. DISTRIBUTION OF ASSETS, LIABILITIES AND SHAREHOLDERS' EQUITY;
INTEREST RATES AND INTEREST DIFFERENTIAL
The following table summarizes the component distribution of average balance
sheet, related interest income and expense and the average annualized yields on
interest earning assets and annualized rates on interest-bearing libilities of
the Registrant and the Bank (adjusted for tax equivalency) for each of the
reported periods. Nonaccrual loans are included in loans for this analysis.
<CAPTION>
Third Quarter Third Quarter
1995 1994
____________________________________________________________________________
Average Average Average AverageChange inVarianceVariance
(dollars in thousands) Balance Interest Rate Balance Interest Rate Interest Balance Rate
Income/ Change Change
Assets Expense
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Commercial loans.....................$ 236,321 $ 5,695 9.62%$ 236,898 $ 5,149 8.67% 546 (86) 632
Residential mortgage loans............ 725,836 15,275 8.42% 663,684 13,483 8.13% 1,792 1,295 497
Home equity lines of credit .......... 201,100 5,137 10.14% 204,136 4,579 8.90% 558 (434) 992
Installment loans..................... 33,372 1,050 12.48% 28,012 888 12.58% 162 211 (49)
--------- ------ --------- ------ ----- ----- -----
Loans, net of unearned income.........1,196,629 27,157 9.06% 1,132,730 24,099 8.49% 3,058 986 2,072
Securities available for sale:
U.S. Treasuries and agencies......... 318,913 5,925 7.43% 229,827 3,850 6.70% 2,075 1,620 455
Mortgage-backed securities........... --- --- --- --- --- --- --- --- ---
States and political subdivisions.... 17,391 361 8.29% --- --- --- 361 361 ---
Other ............................... 20,953 234 4.44% 29,464 506 6.86% (272) (123) (149)
--------- ------ --------- ------ ----- ----- -----
Total securities available for sale 357,257 6,520 7.30% 259,291 4,356 6.72% 2,164 1,858 306
Investment securities:
U.S. Treasuries and agencies......... 120,985 2,280 7.54% 136,087 2,550 7.50% (270) (367) 97
Mortgage-backed securities........... 126,425 2,112 6.68% 151,155 2,485 6.58% (373) (631) 258
States and political subdivisions.... 43,410 805 7.42% 24,815 374 6.03% 431 330 101
Other ............................... 15,014 294 7.85% 15,011 294 7.85% --- --- ---
--------- ------ --------- ------ ----- ----- -----
Total investment securities........ 305,834 5,491 7.18% 327,068 5,703 6.98% (212) (668) 456
Federal funds sold.................... 196,891 2,908 5.86% 207,848 2,416 4.61% 492 (765) 1,257
--------- ------ --------- ------ ----- ----- -----
Total Interest earning assets.......2,056,611 42,076 8.17% 1,926,937 36,574 7.58% 5,502 1,411 4,091
Allowance for loan losses............. (46,187) ------ (37,583) ------ ----- ----- -----
Cash and non-interest earning assets.. 117,401 121,665
--------- ---------
Total assets.......................$2,127,825 $2,011,019
========= =========
Liabilities and shareholders' equity
Time deposits:
Interest-bearing checking:
NOW accounts .....................$ 229,660 1,107 1.91%$ 248,616 $ 919 1.47% 188 (407) 595
Money market accounts.............. 77,729 566 2.89% 104,979 632 2.39% (66) (619) 553
Savings.............................. 621,015 6,386 4.08% 735,607 5,498 2.97% 888 (4,544) 5,432
CD's over $100 thousand.............. 87,515 1,347 6.10% 51,045 668 5.19% 679 545 134
Other time deposits.................. 783,230 11,359 5.75% 590,888 7,447 5.00% 3,912 2,674 1,238
--------- ------ --------- ------ ----- ----- -----
Total time deposits.................1,799,149 20,765 4.58% 1,731,135 15,164 3.48% 5,601 (2,351) 7,952
Short-term borrowings................. 52,427 642 4.86% 18,562 125 2.67% 517 357 160
Long-term debt........................ --- --- --- 2,759 53 7.55% (53) (53) ---
--------- ------ --------- ------ ----- ----- -----
Total interest-bearing liabilities..1,851,576 21,407 4.59% 1,752,456 15,342 3.47% 6,065 (2,047) 8,112
Demand deposits....................... 101,113 ------ 94,067 ------ ----- ----- -----
Other liabilities..................... 28,908 29,839
Shareholders' equity.................. 146,228 134,657
--------- ---------
Total liab. & shareholders' equity.$2,127,825 $2,011,019
========= =========
Net interest income................... 20,669 21,232 (563) 3,458 (4,021)
------ ------ ----- ----- -----
Net interest spread................... 3.58% 4.11%
Net interest margin (net interest
income to total interest earning
assets)............................ 4.04% 4.42%
Tax equivalent adjustment 570 359
------ ------
Net interest income per book....... $20,099 $20,873
====== ======
</TABLE>
<TABLE>
TrustCo Bank Corp NY
Management's Discussion and Analysis
STATISTICAL DISCLOSURE
I. DISTRIBUTION OF ASSETS, LIABILITIES AND SHAREHOLDERS' EQUITY;
INTEREST RATES AND INTEREST DIFFERENTIAL
The following table summarizes the component distribution of average balance
sheet, related interest income and expense and the average annualized yields on
interest earning assets and annualized rates on interest-bearing libilities of
the Registrant and the Bank (adjusted for tax equivalency) for each of the
reported periods. Nonaccrual loans are included in loans for this analysis.
<CAPTION>
Nine Months Nine Months
1995 1994
_____________________________________________________________________________
Average Average Average AverageChange inVarianceVariance
(dollars in thousands) Balance Interest Rate Balance Interest Rate Interest Balance Rate
Income/ Change Change
Assets Expense
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Commercial loans.....................$ 237,815 $ 16,940 9.50%$ 237,595 $ 14,870 8.35% 2,070 14 2,056
Residential mortgage loans............ 702,245 44,281 8.41% 645,521 39,228 8.10% 5,053 3,538 1,515
Home equity lines of credit .......... 204,181 15,604 10.22% 202,267 12,370 8.18% 3,234 118 3,116
Installment loans..................... 33,213 3,151 12.68% 26,928 2,689 13.35% 462 677 (215)
--------- -------- --------- ------- ------ ----- -----
Loans, net of unearned income.........1,177,454 79,976 9.06% 1,112,311 69,157 8.30% 10,819 4,347 6,472
Securities available for sale:
U.S. Treasuries and agencies......... 223,020 12,606 7.54% 334,030 15,611 6.23% (3,005) (7,192) 4,187
Mortgage-backed securities........... ---- ---- --- 48,291 2,122 5.86% (2,122) (2,122) ---
States and political subdivisions.... 9,216 568 8.22% ---- ---- --- 568 568 ---
Other ............................... 18,452 823 5.96% 33,871 1,757 6.92% (934) (715) (219)
--------- ------- --------- ------- ------ ----- -----
Total securities available for sale 250,688 13,997 7.45% 416,192 19,490 6.24% (5,493) (9,461) 3,968
Investment securities:
U.S. Treasuries and agencies......... 137,185 7,662 7.45% 77,762 4,242 7.27% 3,420 3,316 104
Mortgage-backed securities........... 131,920 6,636 6.71% 100,287 4,820 6.41% 1,816 1,583 233
States and political subdivisions.... 43,962 2,438 7.39% 24,375 1,059 5.79% 1,379 1,026 353
Other ............................... 15,013 883 7.85% 13,152 730 7.41% 153 108 45
--------- ------- --------- ------- ------ ----- -----
Total investment securities........ 328,080 17,619 7.16% 215,576 10,851 6.71% 6,768 6,033 735
Federal funds sold.................... 214,330 9,525 5.94% 177,145 5,292 3.99% 4,233 1,274 2,959
--------- ------- --------- ------- ------ ----- -----
Total Interest earning assets.......1,970,552 121,117 8.20% 1,921,224 104,790 7.28% 16,327 2,193 14,134
Allowance for loan losses............. (43,764) ------- (36,587) ------- ------ ----- ------
Cash and non-interest earning assets.. 118,446 116,730
--------- ---------
Total assets.......................$2,045,234 $2,001,367
========= =========
Liabilities and shareholders' equity
Time deposits:
Interest-bearing checking:
NOW accounts .....................$ 231,163 $ 3,260 1.89%$ 247,049 $ 2,731 1.48% 529 (281) 810
Money market accounts.............. 81,949 1,763 2.88% 106,377 1,900 2.39% (137) (622) 485
Savings.............................. 612,219 17,693 3.86% 739,061 16,368 2.96% 1,325 (4,329) 5,654
CD's over $100 thousand.............. 80,731 3,514 5.82% 46,570 1,820 5.23% 1,694 1,467 227
Other time deposits.................. 738,427 31,172 5.64% 582,508 21,760 4.99% 9,412 6,335 3,077
--------- ------- --------- ------- ------ ----- ------
Total time deposits.................1,744,489 57,402 4.40% 1,721,565 44,579 3.46% 12,823 2,570 10,253
Short-term borrowings................. 29,957 1,019 4.55% 19,235 356 2.47% 663 265 398
Long-term debt........................ 1,053 69 8.75% 2,753 142 6.88% (73) (123) 50
--------- ------- --------- ------- ------ ----- ------
Total interest-bearing liabilities..1,775,499 58,490 4.40% 1,743,553 45,077 3.46% 13,413 2,712 10,701
Demand deposits....................... 96,208 ------- 93,453 ------- ------ ----- ------
Other liabilities..................... 30,011 27,607
Shareholders' equity.................. 143,516 136,753
--------- ---------
Total liab. & shareholders' equity.$2,045,234 $2,001,367
========= =========
Net interest income................... 62,627 59,713 2,914 (519) 3,433
------- ------- ------ ----- ------
Net interest spread................... 3.80% 3.82%
Net interest margin (net interest
income to total interest earning
assets)............................ 4.23% 4.14%
Tax equivalent adjustment 1,548 1,165
------- -------
Net interest income per book....... $ 61,079 $ 58,548
======= =======
</TABLE>
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) 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.
TrustCo Bank Corp NY
Date: October 26, 1995 By/s/Robert A. McCormick
----------------------
Robert A. McCormick
President and
Chief Executive Officer
Date: October 26, 1995 By/s/Robert T. Cushing
----------------------
Robert T. Cushing
Vice President and Chief
Financial Officer
<TABLE> <S> <C>
<ARTICLE> 9
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> SEP-30-1995
<CASH> 44,524
<INT-BEARING-DEPOSITS> 1,792,183
<FED-FUNDS-SOLD> 190,000
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 373,186
<INVESTMENTS-CARRYING> 365,899
<INVESTMENTS-MARKET> 298,080
<LOANS> 1,210,354
<ALLOWANCE> 46,775
<TOTAL-ASSETS> 2,136,450
<DEPOSITS> 1,897,922
<SHORT-TERM> 60,607
<LIABILITIES-OTHER> 28,328
<LONG-TERM> 0
<COMMON> 18,101
0
0
<OTHER-SE> 115,842
<TOTAL-LIABILITIES-AND-EQUITY> 2,136,450
<INTEREST-LOAN> 79,598
<INTEREST-INVEST> 39,971
<INTEREST-OTHER> 0
<INTEREST-TOTAL> 119,569
<INTEREST-DEPOSIT> 57,402
<INTEREST-EXPENSE> 58,490
<INTEREST-INCOME-NET> 61,079
<LOAN-LOSSES> 9,738
<SECURITIES-GAINS> 769
<EXPENSE-OTHER> 34,308
<INCOME-PRETAX> 28,115
<INCOME-PRE-EXTRAORDINARY> 28,115
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 18,607
<EPS-PRIMARY> 1.03
<EPS-DILUTED> 1.03
<YIELD-ACTUAL> 423
<LOANS-NON> 12,813
<LOANS-PAST> 2,704
<LOANS-TROUBLED> 1,216
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 38,851
<CHARGE-OFFS> 5,104
<RECOVERIES> 3,290
<ALLOWANCE-CLOSE> 46,775
<ALLOWANCE-DOMESTIC> 0
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 46,775
</TABLE>
