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
Date of Report (Date of earliest event reported): January 20, 1998
(January 20, 1998)
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.)
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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TrustCo Bank Corp NY
Item 5. Other Events
On January 20, 1998, TrustCo Bank Corp NY ("TrustCo") issued two press
releases with year to date and fourth quarter results for the period ending
December 31, 1997. Attached is a copy of each press release labeled as Exhibits
99(a) and 99(b).
Item 7. Exhibits
Reg S-K Exhibit No. Description
99(a) Highlights Press Release of January 20, 1998, for
the period ending December 31, 1997, regarding year
to date and fourth quarter results.
99(b) Press Release of January 20, 1998, for the period
ending December 31, 1997, regarding year to date and
fourth 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: January 20, 1998
TrustCo Bank Corp NY
(Registrant)
By: 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) Highlights Press Release of January 5
20, 1998, for the period ending December
31, 1997, regarding year to date and
fourth quarter results.
99(b) Press Release of January 20, 1998, for 6
the period ending December 31, 1997,
regarding year to date and fourth
quarter results.
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Exhibit 99(a)
TRUSTCO
Bank Corp NY News Release
- -----------------------------------------------------------------
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 20, 1998
FOR IMMEDIATE RELEASE:
TrustCo Bank Corp NY
(dollars in thousands, except per share data)
12/97 12/96
Three Months Ended December 31:
Net Income $ 8,246 7,634
Average Equivalent Shares Outstanding:
- Basic 23,460,000 23,427,000
- Diluted 24,370,000 24,099,000
Net Income per Share:
- Basic $ 0.35 0.33
- Diluted $ 0.34 0.32
Twelve Months Ended December 31:
Net Income $ 32,175 28,699
Average Equivalent Shares Outstanding:
- Basic 23,542,000 23,424,000
- Diluted 24,282,000 23,999,000
Net Income per Share:
- Basic $ 1.37 1.23
- Diluted $ 1.33 1.20
Period End:
Total Assets 2,372,265 2,261,780
Total Nonperforming Loans 10,652 14,035
Total Nonperforming Assets 19,961 20,553
Allowance for Loan Losses 53,455 51,561
Allowance as a Percentage
of Total Loans 4.12% 4.15%
Share and per share data is adjusted for the effect of the 15% stock split
declared in August, 1997.
# # #
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Exhibit 99(b)
TRUSTCO
Bank Corp NY News Release
- ---------------------------------------------------------------
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
FULL YEAR AND FOURTH QUARTER 1997 RESULTS
Schenectady, New York -- January 20, 1998
TrustCo Bank Corp NY (TrustCo, NASDAQ: TRST) announced record results for 1997.
For the full year 1997, net income was $32.2 million, an increase of $3.5
million or 12.1% over net income for 1996. Diluted earnings per share were
$1.33 for 1997, an increase of 10.8%, compared to the $1.20 earned in 1996.
Return on assets and return on equity were 1.40% and 20.23% respectively for
1997, and 1.29% and 19.05% respectively for 1996.
Net income for the fourth quarter 1997 was $8.2 million, an increase of 8.0%
from the $7.6 million reported in the fourth quarter of 1996. Diluted earnings
per share were $0.34 for the quarter or 6.3% greater than the $0.32 per share
reported in last year's fourth quarter. Return on assets and return on equity
for the quarter were 1.40% and 20.34%, respectively compared with 1.36% and
19.59% respectively for the fourth quarter of 1996.
As a result of a recent accounting pronouncement change, TrustCo has disclosed
diluted earnings per share in place of the previous earnings per share
disclosure. Other than the name change, there are no substantive differences
between the two types of disclosures.
HIGHLIGHTS
Robert A. McCormick, TrustCo's President and Chief Executive Officer, commented
on the strong results for the quarter and 1997's exceptional performance. "I
continue to be very pleased with the earnings and asset growth momentum at
TrustCo. Our focus on providing core banking products to the communities we
service through our cost-effective branch network is exactly what this market
demands. TrustCo is well positioned to take advantage of growth opportunities in
the future, and to reach our goal of a 21% return on equity for 1998," Mr.
McCormick said.
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"During the year," Mr. McCormick continued, "TrustCo took several actions
to expand its market penetration and enhance its distribution network. We
effectively marketed our loan products resulting in a 13% increase in
residential mortgage loans at year end 1997. Furthermore, while other
financial institutions are experiencing outflows of deposits from their core
banking relationships, TrustCo had an increase of about $70 million in deposits
during 1997. The increase in core banking relationships is a clear indication
that customers want banking products that are accessible, easy to understand and
reasonably priced."
In 1997, TrustCo continued its branch expansion program with the opening of
full-service bank branches in South Glens Falls, West Sand Lake and in
Wynantskill. Commenting on the branch expansion program at TrustCo, Mr.
McCormick noted, "While other banks move in the direction of electronic
banking delivery systems, we at TrustCo continue to believe in the
personal touch and the value to our company in expanding our branch network. We
are delighted by the response we have received when entering new
communities,and TrustCo is committed to continuing the branch expansion program
in the future."
Fourth Quarter Results
Net income of $8.2 million during the fourth quarter 1997 was 8.0% greater than
the $7.6 million for the same period in 1996. Average assets during the quarter
increased by $103.5 million or 4.6% from
the comparable period in 1996. Return on equity was 20.34% for the quarter, an
increase from the 19.59% return on equity in the fourth quarter of 1996. The
efficiency ratio for the quarter was 41.4% in 1997 and 39.4% in 1996. Commenting
on the efficiency ratio, Mr. McCormick noted," We continue to have some of the
strongest financial ratios of any bank in the country. Our efficiency ratio
continues to reflect the focus that we have on reducing operating cost and our
absolute commitment to keeping them in line with our growth."
Full Year 1997 Results
Net income for 1997 was $32.2 million, an increase of 12.1% over net income of
$28.7 million in 1996. The increase in net income and the continued focus on
capital management resulted in a return on equity of 20.23% for 1997 and 19.05%
for 1996. TrustCo's efficiency ratio for the full year 1997 was 40.6% compared
to 39.5% in 1996. TrustCo has paid out 72% of 1997's net income to shareholders
in the form of cash dividends on its common stock as compared to 70% in 1996.
Mr. McCormick noted "Our objective is to retain within TrustCo sufficient
capital to meet our growth goals and to remain a well capitalized financial
institution. I believe very strongly that capital generated in excess of our
needs should, and will, be returned to our shareholders via dividends."
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Asset Quality
The allowance for loan losses, which represents a reserve established for
potential problem loans, increased to $53.5 million at year end 1997, compared
to $51.6 million at year end 1996. As a percentage of the outstanding loan
portfolio, that represents a 4.12% reserve in 1997 and a 4.15% reserve in 1996.
Total nonperforming loans at year end 1997 decreased to $10.7 million compared
to $14.0 million at year end 1996. For 1997, the allowance for loan losses was
5.0 times the amount of TrustCo's nonperforming loans. Mr. McCormick noted,
"Asset quality is the most important manageable issue that faces banks today.
We utilize an anticipatory mind set in dealing with potential loan problems. I
prefer to deal with problem loans quickly and resolve them."
TrustCo Bank Corp NY is a $2.4 billion bank holding company which serves the
financial needs of customers through its banking subsidiary, Trustco Bank,
National Association. Trustco Bank operates 51 bank offices, in Albany,
Columbia, Greene, Rensselaer, Saratoga, Schenectady, Warren and Washington
Counties. In addition, Trustco Bank operates a full service Trust Department
with $1.07 billion of assets under management.
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<TABLE>
TRUSTCO BANK CORP NY Page 1
SCHENECTADY, NY
(dollars in thousands, except per share data)
<CAPTION>
Three Months Ended
12/31/97 09/30/97 12/31/96
Summary of operations
<S> <C> <C> <C>
Net interest income (TE) $22,216 22,451 21,591
Provision for loan losses 1,674 1,345 1,670
Net gain/(loss) from securities transactions 643 (19) (194)
Noninterest income 4,908 4,345 3,946
Noninterest expense 12,324 11,111 10,646
Net income 8,246 8,483 7,634
Per common share (1)
Net income per share:
- Basic 0.35 0.36 0.33
- Diluted 0.34 0.35 0.32
Cash dividends 0.28 0.24 0.24
Book value at period end 7.64 7.49 6.93
Market price at period end 27.25 23.70 18.59
At period end
Full time equivalent employees 459 459 448
Full service banking offices 51 51 48
Performance ratios
Return on average assets 1.40% 1.45 1.36
Return on average equity (2) 20.34 21.05 19.59
Efficiency (3) 41.39 40.11 39.40
Net interest spread (TE) 3.49 3.58 3.60
Net interest margin (TE) 3.98 4.05 4.04
Dividend payout ratio 78.26 66.04 73.36
Capital ratios at period end (4)
Total equity to assets 6.92 6.99 6.96
Tier 1 risk adjusted capital 13.43 13.52 12.99
Total risk adjusted capital 14.72 14.81 14.28
Asset quality analysis at period end
Nonperforming loans to total loans 0.82 0.82 1.13
Nonperforming assets to total assets 0.84 0.88 0.91
Allowance for loan losses to total loans 4.12 4.12 4.15
Coverage ratio (5) 5.0X 5.0X 3.7
(1) All share and per share information is adjusted for the 15% stock split declared August, 1997.
(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.
</TABLE>
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<TABLE>
FINANCIAL HIGHLIGHTS, Continued Page 2
<CAPTION>
Twelve Months Ended
12/31/97 12/31/96
Summary of operations
<S> <C> <C>
Net interest income (TE) $88,685 87,007
Provision for loan losses 5,414 6,577
Net gain/(loss) from securities transactions (166) (4,536)
Noninterest income 17,388 14,849
Noninterest expense 46,226 42,015
Net income 32,175 28,699
Per common share (1)
Net income per share:
- Basic 1.37 1.23
- Diluted 1.33 1.20
Cash dividends 0.99 0.86
Book value at period end 7.64 6.93
Market price at period end 27.25 18.59
Performance ratios
Return on average assets 1.40% 1.29
Return on average equity (2) 20.23 19.05
Efficiency (3) 40.61 39.51
Net interest spread (TE) 3.57 3.65
Net interest margin (TE) 4.02 4.07
Dividend payout ratio 72.34 70.38
</TABLE>
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<TABLE>
CONSOLIDATED BALANCE SHEETS Page 3
(dollars in thousands)
<CAPTION>
12/31/97 12/31/96
ASSETS
<S> <C> <C>
Loans, net $1,244,821 1,190,321
Securities available for sale 601,899 618,670
Federal funds sold 395,000 310,000
----------------------------------------
Total earning assets 2,241,720 2,118,991
Cash and due from banks 42,740 45,779
Bank premises and equipment 18,609 23,098
Other assets 69,196 73,912
----------------------------------------
Total assets $2,372,265 2,261,780
LIABILITIES
Deposits:
Demand $ 130,345 123,553
Interest-bearing checking 240,699 236,264
Savings 650,601 661,915
Money Market 57,021 61,131
Certificates of deposit > $100 thou 112,599 89,793
Other time deposits 830,598 780,490
----------------------------------------
Total deposits 2,021,863 1,953,146
Short-term borrowings 127,850 111,662
Other liabilities 43,727 34,572
----------------------------------------
Total liabilities 2,193,440 2,099,380
SHAREHOLDERS' EQUITY 178,825 162,400
----------------------------------------
Total liabilities and
shareholders' equity $2,372,265 2,261,780
Number of common shares
outstanding, in thousands 23,402 20,388
</TABLE>
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<TABLE>
CONSOLIDATED STATEMENTS OF INCOME Page 4
(dollars in thousands, except per share data)
<CAPTION>
Three Months Ended
12/31/97 09/30/97 12/31/96
Interest income
<S> <C> <C> <C>
Loans $27,905 27,541 26,796
Investments 10,872 11,745 10,208
Federal funds sold 4,824 4,360 4,723
---------------------------------------------------------------------------------
Total interest income 43,601 43,646 41,727
Interest expense
Deposits 20,766 20,605 19,533
Borrowings 1,455 1,429 1,357
---------------------------------------------------------------------------------
Total interest expense 22,221 22,034 20,890
---------------------------------------------------------------------------------
Net interest income 21,380 21,612 20,837
Provision for loan losses 1,674 1,345 1,670
---------------------------------------------------------------------------------
Net interest income after
provision for loan losses 19,706 20,267 19,167
Net gain/(loss) from securities transactions 643 (19) (194)
Noninterest income 4,908 4,345 3,946
Noninterest expense 12,324 11,111 10,646
---------------------------------------------------------------------------------
Income before income taxes 12,933 13,482 12,273
Income tax expense 4,687 4,999 4,639
---------------------------------------------------------------------------------
Net income $8,246 8,483 7,634
Net income per share:
- Basic $0.35 0.36 0.33
- Diluted 0.34 0.35 0.32
Avg equivalent shares outstanding, in thousands:
- Basic 23,460 23,463 23,427
- Diluted 24,370 24,268 24,099
</TABLE>
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<TABLE>
CONSOLIDATED STATEMENTS OF INCOME Page 5
(dollars in thousands, except per share data)
<CAPTION>
Twelve Months Ended
12/31/97 12/31/96
Interest income
<S> <C> <C>
Loans $109,346 107,111
Investments 44,898 41,902
Federal funds sold 17,761 17,634
------------------------------------------------
Total interest income 172,005 166,647
Interest expense
Deposits 80,946 77,749
Borrowings 5,574 4,593
------------------------------------------------
Total interest expense 86,520 82,342
------------------------------------------------
Net interest income 85,485 84,305
Provision for loan losses 5,414 6,577
------------------------------------------------
Net interest income after
provision for loan losses 80,071 77,728
Net loss from securities transactions (166) (4,536)
Noninterest income 17,388 14,849
Noninterest expense 46,226 42,015
------------------------------------------------
Income before income taxes 51,067 46,026
Income tax expense 18,892 17,327
------------------------------------------------
Net income $32,175 28,699
Net income per share:
- Basic $1.37 1.23
- Diluted 1.33 1.20
Avg equivalent shares outstanding, in thousands:
- Basic 23,542 23,424
- Diluted 24,282 23,999
</TABLE>
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<TABLE>
CONSOLIDATED AVERAGE BALANCE SHEETS Page 6
(in thousands)
<CAPTION>
Three Months Ended
12/31/97 09/30/97 12/31/96
<S> <C> <C> <C>
Total assets $2,342,655 2,323,543 2,239,138
Shareholders' equity 174,110 169,841 160,610
Total loans 1,290,121 1,266,379 1,232,449
Interest earning assets 2,244,266 2,227,967 2,144,806
Interest-bearing liabilities 1,998,796 1,991,880 1,926,527
Twelve Months Ended
12/31/97 12/31/96
Total assets $2,302,598 2,220,535
Shareholders' equity 167,273 155,927
Total loans 1,260,771 1,227,407
Interest earning assets 2,204,725 2,136,826
Interest-bearing liabilities 1,977,442 1,922,193
</TABLE>
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