SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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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 19, 1995
(July 18, 1995)
TrustCo Bank Corp NY
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(Exact name of registrant as specified in its charter)
New York
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(State or other jurisdiction of incorporation)
0-10592 14-1630287
(Commission File Number) (IRS Employer
Identification No.)
192 Erie Boulevard, Schenectady, New York 12305
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code:
(518) 377-3311
Item 5. Other Events
On July 18, 1995, TrustCo Bank Corp NY ("TrustCo") issued
two press releases with the second quarter and year to date
June 30, 1995, results. Attached are copies of the press
releases on Exhibits 99(a) and 99(b) incorporated herein by
this reference.
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 18, 1995
TrustCo Bank Corp NY
(Registrant)
By: /s/Robert T. Cushing
_________________________
Robert T. Cushing
Vice President and Chief
Financial Officer
EXHIBIT INDEX
The following exhibits are filed herewith:
Reg S-K Exhibit No Description
------------------ -----------
99(a) Press Release of July 18, 1995
regarding second quarter and
year to date June 30, 1995,
results.
99(b) "Highlights" Press Release of
July 18, 1995 regarding second
quarter and year to date June
30, 1995, results.
Exhibit 99(a)
William F. Terry
Senior Vice President and Secretary
(518) 381-3611
For Immediate Release:
Schenectady, New York -- July 18, 1995
TrustCo announced today that its Board of Directors has declared
a stock split wherein each shareholder will receive six shares
of stock for each five shares currently owned. The additional
common stock will be distributed on August 24, 1995, to
shareholders of record on August 3, 1995. In addition, the
Board declared its intention to maintain the quarterly cash
dividend at $.275 per share after the stock split to be paid on
October 2, 1995 to shareholders of record on September 8, 1995.
The increased cash dividend coupled with the impact of the
stock split will provide a 20% income enhancement to TrustCo
shareholders. The announcement was made by Robert A. McCormick,
President and Chief Executive Officer of TrustCo Bank Corp NY.
Commenting on the increased cash dividend and the six for five
stock split, Mr. McCormick remarked that "For quite some time
it's been the stated intention of TrustCo to return to our
owners any excess of net income over that which is needed to
operate the business. These actions are totally consistent with
that position. With this increased dividend our dividend payout
ratio for the year 1995 is anticipated to be approximately 70%."
TrustCo also announced today record second quarter earnings of
$6,106,000 for the second quarter of 1995, which represents an
increase of 11.5% from the year ago quarter. Second quarter net
income per share was $0.41 for 1995, an increase of 10.8% from
the $0.37 per share earnings in 1994.
For the first six months of 1995 net income per share totalled
$0.80, up 11.1% from the $0.72 reported for the same period in
1994. Net income for the six month periods were $12,011,000 in
1995 and $10,772,000 in 1994. The net income results for the
six months of 1995 represent a 11.5% increase over 1994.
The annualized return on average shareholders' equity for the six
month period was 17.23% in 1995 and 16.35% in 1994. Mr.
McCormick noted, "The first half results are consistent with our
expectations for 1995 and the attainment of our previously
announced goal of an 18% return on average equity for 1995."
Since 1990, TrustCo has produced a return on average equity of
16.86%. Commenting on this Mr. McCormick stated, "Our intention
in managing TrustCo is to assure our shareholders of superior
results on their investment over a sustained period of time. We
are more interested in a longer term record than simply
achieving single year results. This philosophy is what helps
to distinguish TrustCo from other financial institutions locally
as well as nationally."
Operating efficiencies continued during the second quarter to
reflect the Company's mission statement as outlined in the 1994
Annual Report: "TrustCo will be the low cost provider of high
quality services to the customers and communities it serves and
return to its owners an above average return on their
investment." Financial institutions utilize a measurement
technique called the "Efficiency Ratio" to track the cost of
operating the bank in relation to net interest margins. In the
June 15, 1995 Equity Research publication of Sandler O Neill,
they indicated that the average efficiency ratio of banks they
track in the same asset size range as TrustCo is 61.0%. For
the first half of 1995, TrustCo's efficiency ratio was 43.7%.
Commenting on this achievement McCormick noted, "Success in the
future for financial institutions will be measured in terms of
operating efficiencies. TrustCo's results for the first half of
1995 clearly distinguishes our Bank as a high performer, with
world class operating efficiencies. No other bank locally, and
only a handful nationally, can achieve the efficiency ratio
levels that we have."
As a result of new branch facilities in Hudson Falls and Malta,
coupled with TrustCo's aggressive deposit gathering campaigns,
the June 30, 1995 balances of assets and deposits were up 5.6%
and 4.4% over the balances at year end 1994. Shareholders'
equity has climbed to $147.5 million, and represents a 7.1%
equity to asset ratio. TrustCo's capital levels and operations
continue to qualify the Bank as a "well capitalized"
institution for regulatory purposes.
Non-performing assets at June 30, 1995, are $17.7 million, a
decrease of $5.6 million from March 31, 1995. The reserve set
aside for problem loans has increased to $43.7 million at June
30, 1995 and represents 3.70% of loans. The coverage ratio of
the reserve for loan losses to nonperforming loans is 3.3 at
June 30, 1995.
TrustCo is a $2.1 billion bank holding company and through its
subsidiary bank, Trustco Bank, N. A., operates 45 bank offices
in Albany, Columbia, Greene, Rensselaer, Saratoga, Schenectady,
Warren and Washington counties. In addition, the bank operates a
full service Trust Department with $698 million of assets under
management. The common shares of TrustCo are traded on the
NASDAQ National Market System under the ticker symbol TRST.
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<CAPTION>
TrustCo Bank Corp NY
FINANCIAL HIGHLIGHTS Page 1
(dollars in thousands, except per share data)
Three Months Ended
06/30/95 03/31/95 06/30/94
<S> <C> <C> <C>
Summary of operations
Net interest income (TE) $20,615 21,343 20,050
Provision for loan losses 3,045 3,573 1,886
Net gain/(loss) from
securities transactions 417 211 (3,295)
Noninterest income 3,569 3,238 2,893
Noninterest expense 11,862 11,751 8,808
Net income 6,106 5,905 5,476
Per common share (4)
Net income 0.41 0.40 0.37
Cash dividends 0.28 0.28 0.23
Book value at period end 10.06 9.75 9.14
Market price at period end 21.75 20.75 20.91
At period end
Full time equivalent
employees 446 439 431
Full service banking
offices 45 45 43
Performance ratios
Return on average assets 1.21% 1.21 1.09
Return on average equity (1) 17.36 17.11 16.37
Efficiency (2) 42.79 44.58 36.73
Net interest spread (TE) 3.75 4.09 3.85
Net interest margin (TE) 4.21 4.49 4.16
Dividend payout ratio 66.07 68.25 60.61
Capital ratios at period end
Total equity to assets 7.07 7.14 6.65
Tier 1 risk adjusted
capital 12.29 12.33 12.09
Total risk adjusted capital 13.57 13.61 13.36
Asset quality analysis at
period end (5)
Nonperforming loans to
total loans 1.13 1.65 1.24
Nonperforming assets to
total assets 0.85 1.16 0.87
Allowance for loan losses
to total loans 3.70 3.58 3.23
Coverage ratio (3) 3.3X 2.2X 2.6X
(1) Average equity excludes the effect of the market value
adjustment for securities available for sale.
(2) 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).
(3) Calculated as allowance for loan losses divided by total
nonperforming loans.
(4) All per share information has been calculated prior to the
6 for 5 stock split declared in July, 1995. The 1994 per
share data has been adjusted for the 10% stock dividend
effective October 1, 1994.
(5) All nonperforming loans and assets data has been restated
for the adoption of SFAS No. 114, "Accounting by Creditors
for the Impairment of Loans."
TE = Taxable equivalent.
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<CAPTION>
TrustCo Bank Corp NY
FINANCIAL HIGHLIGHTS, Continued Page 2
Six Months Ended
06/30/95 06/30/94
<S> <C> <C>
Summary of operations
Net interest income (TE) $41,958 38,481
Provision for loan losses 6,618 3,713
Net gain/(loss) from securities
transactions 628 (3,872)
Noninterest income 6,807 6,784
Noninterest expense 23,613 20,217
Net income 12,011 10,772
Per common share (4)
Net income $0.80 0.72
Cash dividends 0.55 0.45
Book value at period end 10.06 9.14
Market price at period end 21.75 20.91
Performance ratios
Return on average assets 1.21% 1.09
Return on average equity (1) 17.23 16.35
Efficiency (2) 43.69 43.22
Net interest spread (TE) 3.92 3.68
Net interest margin (TE) 4.34 4.00
Dividend payout ratio 67.14 61.62
</TABLE>
<TABLE>
<CAPTION>
TrustCo Bank Corp NY
CONSOLIDATED BALANCE SHEETS Page 3
(dollars in thousands)
06/30/95 12/31/94 06/30/94
<S> <C> <C> <C>
ASSETS
Loans, net $1,137,499 1,122,938 1,084,761
Securities available
for sale 322,371 117,458 371,337
Investment securities 332,857 347,858 331,524
Federal funds sold 165,000 263,000 86,000
--------- -------- --------
Total earning
assets 1,957,727 1,851,254 1,873,622
Cash and due from banks 48,259 52,479 56,549
Bank premises and
equipment 25,895 23,877 24,393
Other assets 54,799 48,067 51,986
--------- -------- --------
Total assets $2,086,680 1,975,677 2,006,550
========= ======== ========
LIABILITIES
Deposits:
Demand $102,096 93,496 94,308
Savings 831,691 911,629 986,752
Money Market 79,485 92,965 105,786
Certificates of
deposit > $100
thou 84,571 62,511 51,023
Other time deposits 771,208 629,230 584,441
--------- -------- --------
Total deposits 1,869,051 1,789,831 1,822,310
Short-term borrowings 37,503 12,713 19,370
Long-term debt 0 3,550 2,750
Other liabilities 32,587 30,300 28,649
--------- -------- --------
Total liabilities 1,939,141 1,836,394 1,873,079
SHAREHOLDERS' EQUITY 147,539 139,283 133,471
--------- -------- --------
Total liabilities
and shareholders'
equity $2,086,680 1,975,677 2,006,550
========= ======== ========
Number of common
shares outstanding,
in thousands 14,669 14,617 14,603
</TABLE>
<TABLE>
<CAPTION>
TrustCo Bank Corp NY
CONSOLIDATED STATEMENTS OF INCOME Page 4
(dollars in thousands, except per share data)
Three Months Ended
06/30/95 03/31/95 06/30/94
<S> <C> <C> <C>
Interest income
Loans $26,558 26,005 22,900
Investments 10,459 8,424 10,197
Federal funds sold 2,942 3,675 1,629
--------- -------- --------
Total interest
income 39,959 38,104 34,726
Interest expense
Deposits 19,643 16,994 14,893
Borrowings 230 216 176
--------- -------- --------
Total interest
expense 19,873 17,210 15,069
--------- -------- --------
Net interest
income 20,086 20,894 19,657
Provision for loan losses 3,045 3,573 1,886
--------- -------- --------
Net interest
income after
provision for
loan losses 17,041 17,321 17,771
Net gain/(loss) from
securities transactions 417 211 (3,295)
Noninterest income 3,569 3,238 2,893
Noninterest expense 11,862 11,751 8,808
--------- -------- --------
Income before income taxes 9,165 9,019 8,561
Income tax expense 3,059 3,114 3,085
--------- -------- --------
Net income $6,106 5,905 5,476
========= ======== ========
Net income per share $0.41 0.40 0.37
Avg equivalent shares
outstanding, in thousands 14,964 14,933 14,841
</TABLE>
<TABLE>
<CAPTION>
TrustCo Bank Corp NY
CONSOLIDATED STATEMENTS OF INCOME Page 5
(dollars in thousands, except per share data)
Six Months Ended
06/30/95 06/30/94
<S> <C> <C>
Interest income
Loans $52,563 44,776
Investments 18,883 19,758
Federal funds sold 6,617 2,876
--------- --------
Total interest income 78,063 67,410
Interest expense
Deposits 36,637 29,415
Borrowings 446 320
--------- --------
Total interest expense 37,083 29,735
--------- --------
Net interest income 40,980 37,675
Provision for loan losses 6,618 3,713
--------- --------
Net interest income
after provision for
loan losses 34,362 33,962
Net gain/(loss) from securities
transactions 628 (3,872)
Noninterest income 6,807 6,784
Noninterest expense 23,613 20,217
--------- --------
Income before income taxes 18,184 16,657
Income tax expense 6,173 5,885
--------- --------
Net income 12,011 10,772
========= ========
Net income per share 0.80 0.72
Avg equivalent shares out-
standing, in thousands 14,944 14,876
</TABLE>
<TABLE>
<CAPTION>
TrustCo Bank Corp NY
CONSOLIDATED AVERAGE BALANCE SHEETS Page 6
(in thousands)
Three Months Ended
06/30/95 03/31/95 06/30/94
<S> <C> <C> <C>
Total assets 2,031,611 1,974,579 2,006,352
Shareholders' equity 143,713 140,543 134,353
Interest earning
assets 1,957,664 1,895,605 1,925,789
Interest bearing
liabilities 1,761,016 1,712,375 1,752,092
</TABLE>
<TABLE>
<CAPTION>
Six Months Ended
06/30/95 06/30/94
<S> <C> <C>
Total assets $2,003,253 1,996,461
Shareholders' equity 142,137 137,818
Interest earning assets 1,926,806 1,918,320
Interest bearing liabilities 1,736,830 1,739,028
</TABLE>
Exhibit 99(b)
William F. Terry
Senior Vice President and Secretary
518/381-3611
Schenectady, New York -- July 18, 1995
FOR IMMEDIATE RELEASE:
TrustCo Bank Corp NY
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<CAPTION>
6/95 6/94
____ ____
<S> <C> <C>
Three Months Ended
June 30:
Net Income $ 6,106,000 $5,476,000
========= =========
Average Equivalent
Shares Outstanding 14,964,000 14,841,000
Net Income per Share $.41 $.37
==== ====
Six Months Ended
June 30:
Net Income $12,011,000 $10,772,000
=========== ===========
Average Equivalent
Shares Outstanding 14,944,000 14,876,000
Net Income per Share $.80 $.72
==== ====
Total Nonperforming Loans $13,335,000 $13,941,000
Total Nonperforming Assets 17,656,000 17,536,000
Allowance for Loan Losses 43,715,000 36,166,000
Allowance as a Percentage
of Total Loans 3.70% 3.23%
All per share information has been calculated prior to the 6
for 5 stock split declared in July 1995. The 1994 per share data
has been adjusted for the 10% stock dividend effective
October 1, 1994.
# # #
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