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):
April 16, 1996
(April 16, 1996)
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
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(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
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TrustCo Bank Corp NY
Item 5. Other Events
_______ ____________
On April 16, 1996, TrustCo Bank Corp NY ("TrustCo")
issued two press releases regarding first quarter, March 31,
1996, results of TrustCo Bank Corp NY. 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) Press Release of April 16,
1996, regarding first quarter,
March 31, 1996, results.
99(b) Press Release of April 16,
1996, regarding first quarter,
March 31, 1996, results.
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: April 16, 1996
TrustCo Bank Corp NY
(Registrant)
By: /s/Robert T. Cushing
____________________
Robert T. Cushing
Vice President and
Chief Financial
Officer
Exhibits Index
__________________
The following exhibits are filed herewith:
Reg S-K Exhibit No. Description
__________________ ___________
99(a) Press Release of
April 16, 1996, containing
first quarter, March 31, 1996,
results.
99(b) Press Release of
April 16, 1996, containing
first quarter, March 31, 1996,
results.
Exhibit 99(a)
William F. Terry
Senior Vice President and Secretary
(518) 381-3611
For Immediate Release:
Schenectady, New York -- April 16, 1996
TrustCo began 1996 with record first quarter results, increases
in net income and net interest income, and further improvements
in the operating efficiencies of the Company. Making the
announcement was Robert A. McCormick, President and Chief
Executive Officer.
Net income for the first quarter of 1996 was $6,685,000, an
increase of 13% over the $5,905,000 earned during the
comparable period in 1995. As a result, earnings per share for
1996 were $0.37, compared to $0.33 per share in 1995. The
annualized first quarter return on average equity was 18.3% for
1996 and 17.1% for 1995. TrustCo's goal for 1996 is a return
on average equity of 19%, and the first quarter results are in
line with meeting that objective.
"An improved net interest income and continued expense control
were primary factors in making the first quarter results the
best first quarter in the Company's history," said McCormick.
Taxable equivalent net interest income for the first quarter of
1996 was $21.8 million, compared to $21.3 million in 1995.
Total operating expenses for 1996 were $10.4 million, compared
to $11.8 million in 1995. As a result of the improvements in
operating expenses during 1996, the efficiency ratio for the
first quarter was 40.4%, compared to 1995's ratio of 44.6%.
Commenting on these results, McCormick noted, "As always,
TrustCo has continued its tradition of controlling operating
expenses while at the same time providing high quality service
to TrustCo customers. Compared to the first quarter of 1995,
we have the added cost during 1996 of operating four additional
branches during the entire quarter. These additional branch
costs were offset by reductions in other operating expense
areas, thereby resulting in an overall reduction in operating
expenses by $1.3 million for the quarter."
For the first quarter, TrustCo paid a cash dividend of $0.275
per share to all shareholders. As a percentage of TrustCo's
first quarter net income, this amount represented a dividend
payout of 72.7%, one of the highest in the banking industry.
Commenting on the significant dividends that TrustCo has
historically paid to its shareholders, Mr. McCormick noted,
"The 73% payout of our first quarter net income to our
shareholders is consistent with our long standing position of
retaining within TrustCo sufficient capital to support our
operations and growth plans. Excess capital above those
levels should be and has been returned to our shareholders.
We have achieved these payout ratios and still maintained our
capital ratio at 6.9% of assets at the end of the quarter."
Also during the first quarter, TrustCo increased the
allowance for loan losses to $50.6 million at March 31, 1996,
compared to $41.6 million for the comparable period in 1995.
At March 31, 1996, the allowance for loan losses represented
4.12% of net loans outstanding, an increase from the 3.58% at
March 31, 1995. The coverage ratio of the allowance for loan
losses to nonperforming loans increased from 2.2 times
coverage at March 31, 1995, to 3.3 times coverage at March
31, 1996.
Commenting on the recent activities between TrustCo and
ALBANK Financial Corporation, Mr. McCormick noted, "During
the first quarter we made a generous offer to buy ALBANK for
a combination of cash and TrustCo shares. The emerging
company would have the size and financial strength to survive
in an era of continued consolidation in the financial
services industry. If the business combination were to take
place, the local communities would benefit from having access
to a locally managed, well run bank for the foreseeable
future. Customers would have access to improved services
available over a wider geographic area. The shareholders of
ALBANK would have benefited from an immediate gain in the
value of their investment, and both shareholder groups would
share in the ownership of an emerging company which would
produce a tremendous return on their investment. Clearly,
our interest continues despite the initial negative response
to our offer by ALBANK's Management and Board."
TrustCo is a $2.2 billion bank holding company, and through
its subsidiary bank, Trustco Bank, National Association,
operates 47 bank offices in Albany, Columbia, Greene,
Rensselaer, Saratoga, Schenectady, Warren and Washington
counties. In addition, the bank operates a full service
Trust Department with $848 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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<CAPTION>
Page 1
FINANCIAL HIGHLIGHTS
(dollars in thousands, except per share data)
Three Months Ended
03/31/96 12/31/95 03/31/95
<S> <C> <C> <C>
Summary of operations
Net interest income (TE) $21,761 20,824 21,343
Provision for loan losses 3,110 2,960 3,573
Net gain/(loss) from securities transact (421) (526) 211
Noninterest income 3,548 3,511 3,238
Noninterest expense 10,446 10,132 11,751
Net income 6,685 6,920 5,905
Per common share (1)
Net income $0.37 0.38 0.33
Cash dividends 0.28 0.28 0.23
Book value at period end 8.74 9.08 8.12
Market price at period end 20.69 22.13 17.29
At period end
Full time equivalent employees 431 434 439
Full service banking offices 47 47 45
Performance ratios
Return on average assets 1.23% 1.27 1.21
Return on average equity (2) 18.32 19.21 17.11
Efficiency (3) 40.42 40.54 44.58
Net interest spread (TE) 3.70 3.58 4.09
Net interest margin (TE) 4.13 4.03 4.49
Dividend payout ratio 72.67 70.09 68.25
Capital ratios at period end (4)
Total equity to assets 6.89 6.83 7.08
Tier 1 risk adjusted capital 12.74 12.45 12.33
Total risk adjusted capital 14.03 13.73 13.61
Asset quality analysis at period end
Nonperforming loans to total loans 1.27 1.28 1.65
Nonperforming assets to total assets 0.85 0.89 1.16
Allowance for loan losses to total loans 4.12 3.94 3.58
Coverage ratio (5) 3.3 3. 2.2 X
(1) All per share information has been adjusted for the 6 for 5
stock split effective August, 1995.
(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>
<CAPTION>
CONSOLIDATED BALANCE SHEETS Page 2
(dollars in thousands)
03/31/96 12/31/95 03/31/95
<S> <C> <C> <C>
ASSETS
Loans, net $1,177,007 1,177,822 1,122,647
Securities available for sale 636,337 640,206 226,972
Investment securities 0 0 337,952
Federal funds sold 247,000 239,000 192,000
-------------------------------
Total earning assets 2,060,344 2,057,028 1,879,571
Cash and due from banks 49,773 50,889 48,289
Bank premises and equipment 24,373 25,008 23,869
Other assets 48,690 43,260 48,533
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Total assets $2,183,180 2,176,185 2,000,262
===============================
LIABILITIES
Deposits:
Demand $107,992 111,743 98,785
Now accounts 230,732 231,107 233,981
Savings 672,181 649,033 587,973
Money Market 68,739 69,434 84,082
Certificates of deposit > $100 thou 88,124 84,210 79,028
Other time deposits 770,761 785,122 732,225
-------------------------------
Total deposits 1,938,529 1,930,649 1,816,074
Short-term borrowings 61,570 56,654 14,029
Other liabilities 28,355 28,783 27,316
-------------------------------
Total liabilities 2,028,454 2,016,086 1,857,419
SHAREHOLDERS' EQUITY 154,726 160,099 142,843
-------------------------------
Total liabilities and
shareholders' equity $2,183,180 2,176,185 2,000,262
===============================
Number of common shares
outstanding, in thousands 17,702 17,638 17,586
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<CAPTION>
CONSOLIDATED STATEMENTS OF INCOME Page 3
(dollars in thousands, except per share data)
Three Months Ended
03/31/96 12/31/95 03/31/95
<S> <C> <C> <C>
Interest income
Loans $26,947 27,462 26,005
Investments 11,260 11,503 8,424
Federal funds sold 3,301 3,018 3,675
-------------------------------
Total interest income 41,508 41,983 38,104
Interest expense
Deposits 19,644 20,953 16,994
Borrowings 733 757 216
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Total interest expense 20,377 21,710 17,210
-------------------------------
Net interest income 21,131 20,273 20,894
Provision for loan losses 3,110 2,960 3,573
-------------------------------
Net interest income after
provision for loan losses 18,021 17,313 17,321
Net gain/(loss) from securities transaction (421) (526) 211
Noninterest income 3,548 3,511 3,238
Noninterest expense 10,446 10,132 11,751
-------------------------------
Income before income taxes 10,702 10,166 9,019
Income tax expense 4,017 3,246 3,114
-------------------------------
Net income $6,685 6,920 5,905
===============================
Net income per share $0.37 0.38 0.33
Avg equivalent shares outstanding, in thous 18,210 18,208 17,919
</TABLE>
<TABLE>
<CAPTION>
CONSOLIDATED AVERAGE BALANCE SHEETS Page 4
(in thousands)
Three Months Ended
03/31/96 12/31/95 03/31/95
<S> <C> <C> <C>
Total assets $2,181,734 2,156,948 1,974,579
Shareholders' equity 158,037 151,265 140,543
Interest earning assets 2,100,562 2,076,697 1,894,667
Interest bearing liabilities 1,892,501 1,872,741 1,712,375
</TABLE>
Exhibit 99(b)
William F. Terry
Senior Vice President and Secretary
(518) 381-3611
Schenectady, New York -- April 16, 1996
FOR IMMEDIATE RELEASE:
<TABLE>
<CAPTION>
TrustCo Bank Corp NY
(dollars in thousands,
except per share data) 3/96 3/95
<S> <C> <C>
Three Months Ended
March 31:
Net Income $ 6,685 5,905
Average Equivalent
Shares Outstanding 18,210,000 17,919,000
Net Income per Share $ .37 .33
Total Nonperforming Loans 15,556 19,159
Total Nonperforming Assets 18,463 23,226
Allowance for Loan Losses 50,580 41,623
Allowance as a Percentage
of Total Loans 4.12% 3.58%
Per share data has been adjusted for the 6 for 5 stock
split effective August 1995.
# # #
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