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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 16, 1996
(October 15, 1996)
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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
(Commission File Number) (IRS Employer Identification No.)
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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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<PAGE>
TrustCo Bank Corp NY
Item 5. Other Events
On October 15, 1996, TrustCo Bank Corp NY ("TrustCo") issued
two press releases with year to date and third quarter results
for the period ending September 30, 1996. 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) One page press
release dated October 15,
1996, for the period ending
September 30, 1996, regarding
year to date and third quarter
results.
99(b) Press release dated October
15, 1996, for the period
ending September 30, 1996,
regarding year to date and
third quarter 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: October 15, 1996
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 5
October 15, 1996, for the period
ending September 30, 1996,
regarding year to date and third
quarter results.
99(b) Press release dated October 15, 6
1996, for the period ending
September 30, 1996,regarding
year to date and third quarter
results.
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<TABLE>
Exhibit 99 (a)
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 NASDAQ--TRST
Contact: William F. Terry
Senior Vice President and Secretary
(518) 381-3611
Schenectady, New York -- October 15, 1996
FOR IMMEDIATE RELEASE:
TrustCo Bank Corp NY
<CAPTION>
9/96 9/95
Three Months Ended
September 30:
<S> <C> <C>
Net Income $ 7,467,000 6,596,000
Average Equivalent
Shares Outstanding 18,283,000 18,119,000
Net Income per Share $0.41 0.36
==== ====
Nine Months Ended
September 30:
Net Income $ 21,065,000 18,607,000
Average Equivalent
Shares Outstanding 18,233,000 17,984,000
Net Income per Share $1.16 1.03
==== ====
Period End:
Total Assets 2,246,934,000 2,136,450,000
Total Nonperforming Loans 11,357,000 16,733,000
Total Nonperforming Assets 17,941,000 19,784,000
Allowance for Loan Losses 50,909,000 46,775,000
Allowance as a Percentage
of Total Loans 4.16% 3.86
Share and per share information is presented excluding the effect of the 15%
stock split declared in August 1996.
# # #
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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 NASDAQ -- TRST
Contact: William F. Terry
Senior Vice President and Secretary
518-381-3611
FOR IMMEDIATE RELEASE:
TRUSTCO ANNOUNCES THIRD QUARTER RESULTS
Schenectady, New York - October 15, 1996
Today, TrustCo reported record net income for the third quarter and year to date
1996. For the third quarter, net income increased 13% from $6.6 million in 1995
to $7.5 million for 1996. On a per share basis, this resulted in a 14% increase,
from $0.36 in 1995 to $0.41 in 1996. Likewise, the year to date results through
September 30, 1996 reflect a 13% increase in net income for 1996 over the
comparable period in 1995. Net income for the nine-month period was $21.1
million, or $1.16 per share in 1996 compared to $18.6 million, or $1.03 per
share in 1995. Per share information is presented excluding the effect of the
15% stock split declared in August 1996.
Commenting on the 1996 results was Robert A. McCormick, President and Chief
Executive Officer of TrustCo Bank Corp NY. He stated, "The third quarter results
are a record for TrustCo, and we anticipate that 1996 will be another
record-breaking year. We achieved a return on shareholders' equity of 18.9%
through September 30, 1996, and we are confident that we will reach a 19% return
on shareholders' equity for the full year 1996.
The fundamentals that have served TrustCo so well in the past continue to guide
us into the future. These fundamental beliefs can be summarized as: strong asset
quality; focus on expense control; development of core customer relationships as
compared to transaction- oriented accounts; and return on shareholders' equity
as the principal measurement of the Company's success."
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These TrustCo fundamentals were evident in the following results:
- -> Nonperforming loans have decreased from $16.7 million at September 30,
1995 to $11.4 million at September 30, 1996. Likewise, the allowance for
loan losses, as a percentage of the loan portfolio, increased to 4.16% at
September 30, 1996 compared to 3.94% at year end 1995 and 3.86% at
September 30, 1995.
- -> One measure of how well a banking enterprise controls its operating cost
is the so-called efficiency ratio. While most banks strive to achieve a
60% efficiency ratio, TrustCo has consistently outperformed this industry
goal by achieving an efficiency ratio of 39.6% for 1996.
- -> The principal sources for funding TrustCo's operations are through retail
deposits and the Trustco Short-Term Investment Account, which accepts
funds through the Company's Trust Department. Total funding sources for
the nine months of 1996 have averaged $2.03 billion, an increase of 9%
over the 1995 average balance of $1.87 billion. In addition, core deposit
customers have increased the average balance of demand deposit and savings
account deposits by $14.0 million and $56.4 million, respectively for the
year 1996 compared to 1995, and
- -> The return on average shareholders' equity for the third quarter of 1996
was 19.6% compared to 18.4% for the comparable period in 1995. Likewise,
the return on average shareholders' equity for the nine months of 1996 was
18.9% compared to 17.6% for 1995.
Mr. McCormick noted, "Though we are pleased with the third quarter and the
entire year of 1996 results to date, we are even more proud of TrustCo's long
history of superior results in these areas. As TrustCo has grown and prospered
so have our shareholders. At an annualized rate of $1.10 per share, the TrustCo
common stock dividend payout ratio so far this year is 69.3%. It is wonderful to
know that over the last 10 years, the total return to our shareholders was in
excess of 21% annually."
Also during 1996, TrustCo recorded an increase in the total loan portfolio, from
$1.18 billion on average during 1995 to $1.23 billion for 1996. The increase in
average loans was principally in the real estate loan area which increased by
$61.1 million, or 7% for the nine months of 1996, compared to the same time
period in 1995. McCormick noted, "In light of the slowdown in the home loan
market in our region, we were especially pleased with the growth in our real
estate
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<PAGE>
portfolio. Our growth in real estate loans is the result of our superior loan
pricing and service, tied together with the fact that we hold all of our
mortgage loans for our portfolio and do not sell them into the secondary
market."
TrustCo is a $2.2 billion bank holding company and through its subsidiary bank,
Trustco Bank, National Association, operates 48 bank offices in Albany,
Columbia, Greene, Rensselaer, Saratoga, Schenectady, Warren, and Washington
counties. In addition, the bank operates a full service Trust Department with
$895 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.
# # # #
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<TABLE>
TRUSTCO BANK CORP NY
TRUSTCO BANK CORP NY
SCHENECTADY, NY
FINANCIAL HIGHLIGHTS
(dollars in thousands, except per share data)
<CAPTION>
Three Months Ended
09/30/96 06/30/96 09/30/95
Summary of operations
<S> <C> <C> <C>
Net interest income (TE) $21,479 22,176 20,669
Provision for loan losses 943 854 3,120
Net gain/(loss) from securities transactions (1,291) (2,630) 141
Noninterest income 3,700 3,655 3,506
Noninterest expense 10,248 10,675 10,695
Net income 7,467 6,913 6,596
Per common share (1)
Net income 0.41 0.38 0.36
Cash dividends 0.28 0.28 0.28
Book value at period end 8.90 8.67 8.50
Market price at period end 23.75 19.25 21.75
At period end
Full time equivalent employees 427 432 441
Full service banking offices 48 48 46
Performance ratios
Return on average assets 1.32% 1.25 1.23
Return on average equity (2) 19.60 18.64 18.39
Efficiency (3) 39.23 39.01 42.16
Net interest spread (TE) 3.55 3.71 3.61
Net interest margin (TE) 3.98 4.14 4.05
Dividend payout ratio 65.25 70.42 73.39
Capital ratios at period end (4)
Total equity to assets 6.91 6.85 6.82
Tier 1 risk adjusted capital 12.96 12.64 12.27
Total risk adjusted capital 14.25 13.92 13.55
Asset quality analysis at period end
Nonperforming loans to total loans 0.93 1.13 1.38
Nonperforming assets to total assets 0.80 0.84 0.93
Allowance for loan losses to total loans 4.16 4.12 3.86
Coverage ratio (5) 4.5 X 3.6 X 2.8 X
(1) All share and per share information has been calculated prior to the
15% stock split declared August, 1996.
(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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<TABLE>
TRUSTCO BANK CORP NY
FINANCIAL HIGHLIGHTS, Continued
<CAPTION>
Nine Months Ended
09/30/96 09/30/95
Summary of operations
<S> <C> <C>
Net interest income (TE) $65,416 62,627
Provision for loan losses 4,907 9,738
Net gain/(loss) from securities transactions (4,342) 769
Noninterest income 10,903 10,313
Noninterest expense 31,369 34,308
Net income 21,065 18,607
Per common share (1)
Net income 1.16 1.03
Cash dividends 0.83 0.73
Book value at period end 8.90 8.50
Market price at period end 23.75 21.75
Performance ratios
Return on average assets 1.27 1.22
Return on average equity (2) 18.86 17.63
Efficiency (3) 39.55 43.18
Net interest spread (TE) 3.66 3.82
Net interest margin (TE) 4.08 4.24
Dividend payout ratio 69.30 69.36
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</TABLE>
<TABLE>
TRUSTCO BANK CORP NY
CONSOLIDATED BALANCE SHEETS (dollars in thousands)
<CAPTION>
09/30/96 12/31/95 09/30/95
<S> <C> <C> <C>
ASSETS
Loans, net $1,173,922 1,177,822 1,163,579
Securities available for sale 547,787 640,206 373,186
Investment securities 0 0 292,444
Federal funds sold 388,000 239,000 190,000
------------------------------------------
Total earning assets 2,109,709 2,057,028 2,019,209
Cash and due from banks 42,385 50,889 44,524
Bank premises and equipment 23,621 25,008 24,802
Other assets 71,219 43,260 47,915
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Total assets $2,246,934 2,176,185 2,136,450
==========================================
LIABILITIES
Deposits:
Demand $128,338 111,743 105,739
Now accounts 228,919 231,107 222,050
Savings 669,863 649,033 626,018
Money Market 61,724 69,434 71,021
Certificates of deposit > $100 thou 84,388 84,210 87,372
Other time deposits 758,497 785,122 785,722
------------------------------------------
Total deposits 1,931,729 1,930,649 1,897,922
Short-term borrowings 124,961 56,654 60,607
Other liabilities 32,592 28,783 28,328
------------------------------------------
Total liabilities 2,089,282 2,016,086 1,986,857
SHAREHOLDERS' EQUITY 157,652 160,099 149,593
------------------------------------------
Total liabilities and
shareholders' equity $2,246,934 2,176,185 2,136,450
==========================================
Number of common shares
outstanding, in thousands 17,721 17,638 17,604
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</TABLE>
<TABLE>
TRUSTCO BANK CORP NY
CONSOLIDATED STATEMENTS OF INCOME
(dollars in thousands, except per share data)
<CAPTION>
Three Months Ended
09/30/96 06/30/96 09/30/95
Interest income
<S> <C> <C> <C>
Loans $26,642 26,726 27,035
Investments 9,050 11,384 11,563
Federal funds sold 5,898 3,712 2,908
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Total interest income 41,590 41,822 41,506
Interest expense
Deposits 19,379 19,193 20,765
Borrowings 1,406 1,097 642
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Total interest expense 20,785 20,290 21,407
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Net interest income 20,805 21,532 20,099
Provision for loan losses 943 854 3,120
------------------------------------------
Net interest income after
provision for loan losses 19,862 20,678 16,979
Net gain/(loss) from securities transactions (1,291) (2,630) 141
Noninterest income 3,700 3,655 3,506
Noninterest expense 10,248 10,675 10,695
------------------------------------------
Income before income taxes 12,023 11,028 9,931
Income tax expense 4,556 4,115 3,335
------------------------------------------
Net income $7,467 6,913 6,596
==========================================
Net income per share $0.41 0.38 0.36
Avg equivalent shares outstanding, in thousands 18,283 18,201 18,119
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</TABLE>
<TABLE>
TRUSTCO BANK CORP NY
CONSOLIDATED STATEMENTS OF INCOME
(dollars in thousands, except per share data)
<CAPTION>
Nine Months Ended
09/30/96 09/30/95
Interest income
<S> <C> <C>
Loans $80,315 79,598
Investments 31,694 30,446
Federal funds sold 12,911 9,525
----------------------------
Total interest income 124,920 119,569
Interest expense
Deposits 58,216 57,402
Borrowings 3,236 1,088
----------------------------
Total interest expense 61,452 58,490
----------------------------
Net interest income 63,468 61,079
Provision for loan losses 4,907 9,738
----------------------------
Net interest income after
provision for loan losses 58,561 51,341
Net gain/(loss) from securities transactions (4,342) 769
Noninterest income 10,903 10,313
Noninterest expense 31,369 34,308
----------------------------
Income before income taxes 33,753 28,115
Income tax expense 12,688 9,508
----------------------------
Net income 21,065 18,607
============================
Net income per share 1.16 1.03
Avg equivalent shares outstanding, in thousands 18,233 17,984
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</TABLE>
<TABLE>
TRUSTCO BANK CORP NY
CONSOLIDATED AVERAGE BALANCE SHEETS (in thousands)
<CAPTION>
Three Months Ended
09/30/96 06/30/96 09/30/95
<S> <C> <C> <C>
Total assets $2,245,249 2,215,544 2,127,825
Shareholders' equity 153,273 151,767 146,228
Total loans 1,222,591 1,227,421 1,196,629
Interest earning assets 2,162,913 2,138,647 2,049,857
Interest bearing liabilities 1,944,910 1,924,538 1,851,576
</TABLE>
<TABLE>
<CAPTION>
Nine Months Ended
09/30/96 09/30/95
<S> <C> <C>
Total assets $2,214,289 2,045,234
Shareholders' equity 154,355 143,516
Total loans 1,225,715 1,177,454
Interest earning assets 2,134,147 1,966,454
Interest bearing liabilities 1,920,738 1,775,499
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