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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): January 22, 1997
(January 21, 1997)
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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
Two press releases were issued on January 21, 1997, discussing
fourth quarter and year-to-date results for 1996. Attached are
the press releases 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
January 21, 1997,with fourth quarter
1996 and 1996 year-to-date results.
99(b) Press release dated January 21, 1997,
with fourth quarter 1996 and 1996
year-to-date 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: January 22, 1997
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
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99(a) One page press release dated 5
January 22, 1997,
highlighting fourth quarter
1996 and 1996 year-to-date
results.
99(b) Press release dated January 6
22, 1997, highlighting fourth
quarter 1996 and 1996 year-
to-date results.
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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 -- January 21, 1997
FOR IMMEDIATE RELEASE:
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TrustCo Bank Corp NY
(dollars in thousands, except per share data) 1996 1995
---- ----
<S> <C> <C>
Three Months Ended
December 31:
Net Income $ 7,634 6,920
---------- ===========
Average Equivalent
Shares Outstanding 21,163,000 20,939,000
Net Income per Share $0.36 0.33
---- ====
Twelve Months Ended
December 31:
Net Income $ 28,699 25,527
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Average Equivalent
Shares Outstanding 21,022,000 20,740,000
Net Income per Share $1.37 1.23
---- ====
Total Nonperforming Loans $14,035 15,658
Total Nonperforming Assets 20,553 19,390
Allowance for Loan Losses 51,561 48,320
Allowance as a Percentage
of Total Loans 4.15% 3.94
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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 FOURTH QUARTER
AND FULL YEAR 1996 RESULTS
Schenectady, New York -- January 21, 1997
TrustCo Bank Corp NY (Nasdaq: TRST) today announced financial results for 1996.
Net income for the year ended December 31, 1996, was $28.7 million, resulting in
$1.37 per share, which represents an increase of 12% and 11% respectively over
the 1995 full year results of $25.5 million and $1.23 per share. Net income for
the three months ended December 31, 1996, was $7.6 million or $0.36 per share,
compared to $6.9 million, or $0.33 a share for the fourth quarter of 1995. Both
the full year and fourth quarter results represent record earnings for TrustCo.
Making the announcement was Robert A. McCormick, President and Chief Executive
Officer.
"Our 1996 results continue to be outstanding. We achieved significant goals
during the year, not the least of which was a return on equity of 19.05% for the
year. During the fourth quarter our return on equity was approximately 19.6%.
These results met our expectations for 1996, and we are well positioned for
continued increases in net income for 1997. Our 1997 goal for return on equity
is 20% for the full year," said Mr. McCormick. Average assets of $2.22 billion
for the year 1996 increased by $147.1 million or 7.10% over the comparable
period in 1995. Likewise, average earning assets increased by 7.15% during the
same time periods. Net interest margin decreased slightly from 4.18% in 1995 to
4.07% in 1996. The decrease in net interest margin is attributable to the
relatively large balance of assets that TrustCo has in overnight investments.
Commenting on this, Mr. McCormick stated, "TrustCo actively manages its balance
sheet to achieve superior performance in both a rising and falling interest rate
environment. We have taken steps to position the Company
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to take advantage of changes in interest rates, which over the long run will
provide an enhanced level of net interest income to the Company. At TrustCo we
stress the importance of making strategic decisions that will benefit our
shareholders for years to come."
Other highlights of the 1996 results are as follows:
o The dividends paid on TrustCo common stock were $0.99 per share for 1996
compared to $0.88 per share in 1995. For 1996 TrustCo paid out in excess
of 70% of net income to its shareholders in the form of cash dividends on
its common stock. Mr. McCormick noted, "The most important constituents
of this Company are its shareholders. We retain within the Company
sufficient capital to meet all of the regulatory requirements and to meet
our needs for growth. I believe very strongly that capital generated in
excess of our needs should, and will, be returned to our shareholders
via dividends."
TrustCo has increased the annual cash dividend each
year since 1983, by an average of approximately 19%.
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o The allowance for loan losses was increased to $51.6 million for 1996
from $48.3 million at year end 1995. The allowance for loan losses has
been established over the years as a reserve against future losses on
loans that become nonperforming. As a measure of the sufficiency of this
reserve, TrustCo's allowance is in excess of 15 times greater than the
net loans charged off for all of 1996.
o One of the most insightful measures of cost control over a bank's
operations is the efficiency ratio. That ratio measures the relative cost
of operating a bank in relation to the recurring net revenues that the
bank generates. The lower the ratio, the more financially efficient the
bank is operating. TrustCo achieved a 39.5% efficiency ratio for 1996,
and 42.5% for 1995. "We are very proud of the efficient way in which
TrustCo operates. Our philosophy stresses cost control at all levels
within the organization, and every one of our employees is expected to
contribute to this goal," stated Mr. McCormick. To help put TrustCo's
strong performance with respect to efficiency ratio into perspective,
Mr. McCormick noted, "A general goal for other banks is to achieve an
efficiency ratio of 60%, as compared to our actual 1996 results of 39.5%.
The difference between our efficiency ratio of 39.5% and other banks' goal
of 60% is approximately $20.9 million of additional cost that we have
eliminated from our operations. Now that is world class."
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The TrustCo branch expansion program continued in 1996 with the
opening of the 48th Trustco Bank branch at Malta 4 Corners and the
relocation of the Shoppers World branch in Clifton Park.
TrustCo Bank Corp NY serves the financial needs of customers
through its banking subsidiary, Trustco Bank, National Association.
Trustco Bank operates 48 bank offices, in Albany, Columbia, Greene,
Rensselaer, Saratoga, Schenectady, Warren and Washington Counties.
In addition, Trustco Bank operates a full service Trust Department
with $950 million of assets under management.
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TRUSTCO BANK CORP NY Page 1
SCHENECTADY, NY
FINANCIAL HIGHLIGHTS
(dollars in thousands, except per share data)
Three Months Ended
12/31/96 09/30/96 12/31/95
Summary of operations
<S> <C> <C> <C>
Net interest income (TE) $21,591 21,479 20,824
Provision for loan losses 1,670 943 2,960
Net gain/(loss) from
securities transactions (194) (1,291) (526)
Noninterest income 3,946 3,700 3,511
Noninterest expense 10,646 10,248 10,132
Net income 7,634 7,467 6,920
Per common share (1)
Net income 0.36 0.36 0.33
Cash dividends 0.28 0.24 0.24
Book value at period end 7.97 7.74 7.89
Market price at period end 21.38 20.65 19.24
At period end
Full time equivalent employees 438 427 434
Full service banking offices 48 48 47
Performance ratios
Return on average assets 1.36% 1.32 1.27
Return on average equity (2) 19.59 19.60 19.21
Efficiency (3) 39.40 39.23 40.54
Net interest spread (TE) 3.60 3.55 3.58
Net interest margin (TE) 4.04 3.98 4.03
Dividend payout ratio 73.36 65.25 70.09
Capital ratios at period end (4)
Total equity to assets 6.96 6.91 7.36
Tier 1 risk adjusted capital 12.99 12.96 12.45
Total risk adjusted capital 14.28 14.25 13.73
Asset quality analysis at period end
Nonperforming loans to total loans 1.13 0.93 1.28
Nonperforming assets to total assets 0.91 0.80 0.89
Allowance for loan losses to total loans 4.15 4.16 3.94
Coverage ratio (5) 3.7 X 4.5 X 3.1 X
(1) All share and per share information has been restated for the effect of
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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FINANCIAL HIGHLIGHTS, Continued Page 2
Twelve Months Ended
12/31/96 12/31/95
Summary of operations
<S> <C> <C>
Net interest income (TE) $87,007 83,451
Provision for loan losses 6,577 12,698
Net gain/(loss) from
securities transactions (4,536) 243
Noninterest income 14,849 13,824
Noninterest expense 42,015 44,440
Net income 28,699 25,527
Per common share (1)
Net income 1.37 1.23
Cash dividends 0.99 0.88
Book value at period end 7.97 7.89
Market price at period end 21.38 19.24
Performance ratios
Return on average assets 1.29% 1.23
Return on average equity (2) 19.05 18.03
Efficiency (3) 39.51 42.52
Net interest spread (TE) 3.65 3.75
Net interest margin (TE) 4.07 4.18
Dividend payout ratio 70.38 69.55
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<CAPTION>
CONSOLIDATED BALANCE SHEETS Page 3
(dollars in thousands)
12/31/96 12/31/95
ASSETS
<S> <C> <C>
Loans, net $1,190,321 1,177,822
Securities available for sale 618,670 640,206
Federal funds sold 310,000 239,000
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Total earning assets 2,118,991 2,057,028
Cash and due from banks 45,779 50,889
Bank premises and equipment 23,098 25,008
Other assets 73,912 43,260
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Total assets $2,261,780 2,176,185
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LIABILITIES
Deposits:
Demand $123,553 111,743
Now accounts 236,264 231,107
Savings 661,915 649,033
Money Market 61,131 69,434
Certificates of deposit > $100 thou 89,793 84,210
Other time deposits 780,490 785,122
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Total deposits 1,953,146 1,930,649
Short-term borrowings 111,662 56,654
Other liabilities 34,572 28,783
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Total liabilities 2,099,380 2,016,086
SHAREHOLDERS' EQUITY 162,400 160,099
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Total liabilities and
shareholders' equity $2,261,780 2,176,185
========= =========
Number of common shares
outstanding, in thousands 20,388 20,284
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<CAPTION>
CONSOLIDATED STATEMENTS OF INCOME Page 4
(dollars in thousands, except per share data)
Three Months Ended
12/31/96 09/30/96 12/31/95
Interest income
<S> <C> <C> <C>
Loans $26,796 26,642 27,462
Investments 10,208 9,050 11,503
Federal funds sold 4,723 5,898 3,018
------ ------ ------
Total interest income 41,727 41,590 41,983
Interest expense
Deposits 19,533 19,379 20,953
Borrowings 1,357 1,406 757
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Total interest expense 20,890 20,785 21,710
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Net interest income 20,837 20,805 20,273
Provision for loan losses 1,670 943 2,960
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Net interest income after
provision for loan losse 19,167 19,862 17,313
Net gain/(loss) from securities
transactions (194) (1,291) (526)
Noninterest income 3,946 3,700 3,511
Noninterest expense 10,646 10,248 10,132
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Income before income taxes 12,273 12,023 10,166
Income tax expense 4,639 4,556 3,246
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Net income $ 7,634 7,467 6,920
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Net income per share $ 0.36 0.36 0.33
Avg equivalent shares outstanding,
in thousands 21,163 21,025 20,939
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<CAPTION>
CONSOLIDATED STATEMENTS OF INCOME Page 5
(dollars in thousands, except per share data)
Twelve Months Ended
12/31/96 12/31/95
Interest income
<S> <C> <C>
Loans $107,111 107,060
Investments 41,902 41,949
Federal funds sold 17,634 12,543
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Total interest income 166,647 161,552
Interest expense
Deposits 77,749 78,355
Borrowings 4,593 1,845
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Total interest expense 82,342 80,200
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Net interest income 84,305 81,352
Provision for loan losses 6,577 12,698
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Net interest income after
provision for loan losses 77,728 68,654
Net gain/(loss) from securities
transactions (4,536) 243
Noninterest income 14,849 13,824
Noninterest expense 42,015 44,440
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Income before income taxes 46,026 38,281
Income tax expense 17,327 12,754
------- -------
Net income $28,699 25,527
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Net income per share $ 1.37 1.23
Avg equivalent shares outstanding,
in thousands 21,022 20,740
</TABLE>
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<CAPTION>
CONSOLIDATED AVERAGE BALANCE SHEETS Page 6
(in thousands)
Three Months Ended
12/31/96 09/30/96 12/31/95
<S> <C> <C> <C>
Total assets $2,239,138 2,245,249 2,156,948
Shareholders' equity 160,610 153,273 151,265
Total loans 1,232,449 1,222,591 1,219,014
Interest earning assets 2,144,806 2,162,913 2,076,697
Interest bearing liabilities 1,926,527 1,944,910 1,872,741
</TABLE>
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<CAPTION>
Twelve Months Ended
12/31/96 12/31/95
<S> <C> <C>
Total assets $2,220,535 2,073,391
Shareholders' equity 155,927 145,469
Total loans 1,227,407 1,187,929
Interest earning assets 2,136,826 1,994,240
Interest bearing liabilities 1,922,193 1,800,008
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