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): October 19, 1999
(October 19, 1999)
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
<PAGE>
TrustCo Bank Corp NY
Item 5. Other Events
On October 19, 1999, TrustCo Bank Corp NY ("Trustco") issued two
press releases with year to date and third quarter results for
the period ending September 30, 1999. 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) Highlights Press Release dated
October 19, 1999,for the period
ending September 30, 1999,
regarding year to date and third
quarter results.
99(b) Press Release dated October 19,
1999, for the period ending
September 30, 1999, regarding
year to date and third quarter
results.
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<PAGE>
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.
Date: October 19, 1999
TrustCo Bank Corp NY
(Registrant)
By:/s/ Robert T. Cushing
Robert T. Cushing
Vice President and
Chief Financial Officer
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<PAGE>
Exhibits Index
The following exhibits are filed herewith:
Reg S-K Exhibit No. Description Page
__________________ ____________________________ __________
99(a) Highlights Press Release of 5
October 19, 1999, for the
period ending September 30,
1999, regarding year to date
and third quarter results.
99(b) Press Release of October 19, 6
1999, for the period ending
September 30, 1999, regarding
year to date and third quarter
results.
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<PAGE>
TRUSTCO Exhibit 99(a)
Bank Corp NY News Release
________________________________________________________________________________
192 Erie Boulevard, Schenectady, New York, 12305
(518) 377-3311 Fax: (518) 381-3668
Subsidiary: Trustco Bank
Contact: William F. Terry
Senior Vice President and Secretary
518-381-3611
FOR IMMEDIATE RELEASE: Schenectady, New York - October 19, 1999
TrustCo Bank Corp NY
(dollars in thousands, except per share data)
<TABLE>
<CAPTION>
9/99 9/98
Three Months Ended September 30:
<S> <C> <C>
Net Income $ 9,972 9,209
Provision for Loan Losses 1,000 450
Average Equivalent Shares Outstanding:
Basic 26,861,000 26,774,000
Diluted 27,976,000 27,913,000
Net Income per Share:
Basic $ 0.37 0.34
Diluted 0.36 0.33
Nine Months Ended September 30:
Net Income $ 28,787 26,253
Provision for Loan Losses 4,013 3,380
Average Equivalent Shares Outstanding:
Basic 26,874,000 26,820,000
Diluted 27,977,000 27,933,000
Net Income per Share:
Basic $ 1.07 0.98
Diluted 1.03 0.94
Period End:
Total Assets 2,385,360 2,488,733
Total Nonperforming Loans 9,941 10,415
Total Nonperforming Assets 12,212 16,082
Allowance for Loan Losses 55,719 54,325
Allowance as a Percentage
of Total Loans 4.17% 4.11%
</TABLE>
Note: All share and per share information is calculated prior to the 2 for 1
stock split declared August, 1999.
# # #
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<PAGE>
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
Contact: William F. Terry
Senior Vice President and Secretary
518-381-3611
FOR IMMEDIATE RELEASE:
TRUSTCO ANNOUNCES RECORD
THIRD QUARTER AND YEAR-TO-DATE 1999 RESULTS
AND
THE ESTABLISHMENT OF TrustcoBankUSA.com
Schenectady, New York - October 19, 1999
TrustCo Bank Corp NY (TrustCo, NASDAQ: TRST) today announced record earnings
results for the third quarter and year to date 1999. Net income for the third
quarter 1999 was $10.0 million or $0.36 diluted earnings per share, compared to
$9.2 million, or $0.33 diluted earnings per share for the third quarter of 1998.
The third quarter results represent increases of 8.3% and 9.1% in net income and
diluted earnings per share, respectively for 1999 compared to 1998.
Net income for the nine months ended September 30, 1999 was $28.8 million, or
$1.03 diluted earnings per share, compared to $26.3 million, or $0.94 diluted
earnings per share, for the nine month period ended September 30, 1998. The year
to date results reflect increases of 9.7% and 9.6% in net income and diluted
earnings per share, respectively, for the nine months of 1999 compared to the
similar period in 1998.
Making the announcement was Robert A. McCormick, President and Chief Executive
Officer. Mr. McCormick noted, "TrustCo's superior earnings results for 1999 are
generated by the execution of our basic banking plan that delivers superior
quality service to our customers at reasonable cost. I am confident that for
1999 we will achieve our stated objective of a 22% return on equity, and we are
well situated for increased growth in that area for the future." Return on
equity was 23.2% and 22.7% for the third quarter and year to date results for
1999, compared to 22.3% and 21.7% for the comparable periods in 1998.
TrustCo also announced its intention to expand its product delivery network with
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<PAGE>
the addition of an Internet banking service through a new operating division,
TrustcoBankUSA. "We have completed our analysis on this evolving delivery
channel, and anticipate that our web site will be functional early in 2000. We
are excited by the opportunities to deliver our products through the Internet,
and recognize that this is a logical next step in the evolution of our retail
banking franchise." Additional details of TrustcoBankUSA will be released before
year-end.
The single largest contributor to net income is the level of taxable equivalent
net interest income that TrustCo has attained in 1999. For the third quarter,
taxable equivalent net interest income was $24.8 million for 1999 compared to
$22.2 for 1998, an increase of 11.6%. Likewise, the year to date results reflect
a taxable equivalent net interest income of $72.2 million for 1999 compared to
$66.9 million for 1998, an increase of 7.8%. Commenting on these increases Mr.
McCormick stated, "During 1999 we positioned the Bank to take advantage of
anticipated increases in interest rates on investment and loan products.
Consequently as rates rose during 1999, we had funds available to invest at
these higher levels, thereby contributing significantly to the increase in our
net interest margin. Additionally, we executed a plan during 1999 to reduce the
high cost certificates of deposit on our balance sheet. During the year we
priced our CD products competitively, but at the same time, we did not chase
after high cost deposit dollars. The combination of increasing opportunities on
the investment and loan side, coupled with the reduction in our deposit cost,
has resulted in a significant increase in our net margins." The net interest
margin for the third quarter of 1999 was 4.25% compared to 3.75% in 1998.
For the third quarter of 1999, TrustCo's efficiency ratio was 37.4% compared to
41.0% for the third quarter of 1998. The efficiency ratio for the nine months of
1999 was 39.0% compared to 39.7% for 1998. As Mr. McCormick noted, "TrustCo's
profitability and efficiency ratios rank among the banking industry best. We
continually strive to identify opportunities to reduce or control cost. Cost
containment is part of the philosophical fiber of this company. Increased
shareholder value is the result of efficient operations."
Asset quality indicators continued to be strong during the quarter, with
nonperforming loans as a percentage of total loans at September 30, 1999 of
0.74%. The allowance for loan losses was $55.7 million at September 30, 1999 and
represents 4.17% of loans outstanding.
TrustCo was recently featured in the August 1999 issue of DRIP Investor. The
article highlighted TrustCo's long-term performance and the features of the
TrustCo Dividend Reinvestment Plan. Approximately 70% of TrustCo registered
shareholders take advantage of this plan.
As a result of TrustCo's outstanding record of providing shareholders with
increased dividend performance, the Company has been recognized in Moody's
Handbook of Dividend Achievers (1999 edition) as one of 334 companies of a
universe of 10,000 U.S. based firms providing increased dividend payments over
the past ten consecutive years.
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<PAGE>
TrustCo's shares are now listed on the Berlin Germany Stock Exchange under the
symbol TC5, permitting German investors to purchase TrustCo shares in Euros.
During the third quarter of 1999, the Board of Directors' declared a 2 for 1
stock split for shareholders of record on October 22, 1999. Also the Board of
Directors' indicated their intention to increase the annual cash dividend to
$0.60 per share on the post split shares.
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 53 bank offices, in Albany,
Columbia, Greene, Rensselaer, Saratoga, Schenectady, Schoharie, Warren and
Washington Counties. In addition, Trustco Bank operates a full service Trust
Department with $1.28 billion of assets under management.
Except for historical information contained herein, the matters discussed in
this news release and other information contained in TrustCo's Securities and
Exchange Commission filings may express "forward looking statements". Those
"forward looking statements" may involve risk and uncertainties, including
statements concerning future events or performance and assumptions and other
statements that are other than statements of historical facts. TrustCo wishes to
caution readers not to place undue reliance on any forward looking statements,
which speak only as of the date made. Readers are advised that various risk
factors, including but not limited to: (1) credit risk, (2) interest rate risk,
(3) competition, (4) certain vendors critical systems or services failing to
comply with Year 2000 programming issues, (5) changes in the regulatory
environment, and (6) changes in general business and economic trends, could
cause the actual results or circumstances for future periods to differ
materially from those anticipated or projected.
TrustCo does not undertake, and specifically disclaims any obligation, to
publicly release the results of any revisions that may be made to any forward
looking statements to reflect the occurrence of unanticipated events or
circumstances after the date of such statement.
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<PAGE>
TRUSTCO BANK CORP NY
SCHENECTADY, NY
(dollars in thousands, except per share data)
<TABLE>
<CAPTION>
Three Months Ended
09/30/99 06/30/99 09/30/98
Summary of operations
<S> <C> <C> <C>
Net interest income (TE) $24,788 23,983 22,202
Provision for loan losses 1,000 1,500 450
Net securities transactions (1,153) (657) 135
Noninterest income 5,051 4,907 4,580
Noninterest expense 11,500 11,353 11,757
Net income 9,972 9,492 9,209
Per common share (1)
Net income per share:
- Basic 0.37 0.35 0.34
- Diluted 0.36 0.34 0.33
Cash dividends 0.275 0.275 0.239
Book value at period end 6.43 6.58 6.93
Market price at period end 29.53 26.88 23.32
At period end
Full time equivalent employees 466 465 460
Full service banking offices 53 53 53
Performance ratios
Return on average assets 1.64 % 1.56 1.48
Return on average equity (2) 23.22 22.48 22.26
Efficiency (3) 37.41 38.33 41.00
Net interest spread (TE) 3.78 3.60 3.26
Net interest margin (TE) 4.25 4.07 3.75
Dividend payout ratio 74.17 77.83 69.49
Capital ratios at period end (4)
Total equity to assets 7.09 7.02 6.70
Tier 1 risk adjusted capital 13.27 13.08 12.49
Total risk adjusted capital 14.56 14.37 13.77
Asset quality analysis at period end
Nonperforming loans to total loans 0.74 0.87 0.79
Nonperforming assets to total assets 0.51 0.58 0.65
Allowance for loan losses to total loans 4.17 4.20 4.11
Coverage ratio (5) 5.6 X 4.9 X 5.2 X
(1) All share and per share information is calculated prior to the 2 for 1 stock split declared August, 1999.
(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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<PAGE>
FINANCIAL HIGHLIGHTS, Continued
Nine Months Ended
<TABLE>
<CAPTION>
09/30/99 09/30/98
Summary of operations
<S> <C> <C>
Net interest income (TE) $72,158 66,920
Provision for loan losses 4,013 3,380
Net securities transactions (2,230) 271
Noninterest income 15,798 14,345
Noninterest expense 35,055 34,585
Net income 28,787 26,253
Per common share (1)
Net income per share:
- Basic 1.07 0.98
- Diluted 1.03 0.94
Cash dividends 0.825 0.717
Book value at period end 6.43 6.93
Market price at period end 29.53 23.32
Performance ratios
Return on average assets 1.59 % 1.45
Return on average equity (2) 22.72 21.67
Efficiency (3) 38.97 39.71
Net interest spread (TE) 3.63 3.34
Net interest margin (TE) 4.09 3.82
Dividend payout ratio 77.08 73.21
</TABLE>
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<PAGE>
CONSOLIDATED BALANCE SHEETS
(dollars in thousands)
<TABLE>
<CAPTION>
09/30/99 12/31/98 09/30/98
ASSETS
<S> <C> <C> <C>
Loans, net $1,280,859 1,268,328 1,268,638
Securities available for sale 703,276 717,410 659,213
Other short-term investments 0 24,979
Federal funds sold 265,000 358,000 437,000
------------------------------------------
Total earning assets 2,249,135 2,368,717 2,364,851
Cash and due from banks 41,755 41,950 42,009
Bank premises and equipment 15,826 17,022 17,756
Other assets 78,644 57,391 64,117
------------------------------------------
Total assets $2,385,360 2,485,080 2,488,733
============================================
LIABILITIES
Deposits:
Demand $159,088 154,358 147,633
Interest-bearing checking 266,952 266,027 247,487
Savings 656,038 660,376 655,888
Money Market 59,747 58,061 54,986
Certificates of deposit > $100 thou 112,122 139,310 138,457
Other time deposits 759,497 829,282 857,357
-----------------------------------------
Total deposits 2,013,444 2,107,414 2,101,808
Short-term borrowings 151,774 147,924 158,766
Other liabilities 48,036 43,900 42,771
-----------------------------------------
Total liabilities 2,213,254 2,299,238 2,303,345
SHAREHOLDERS' EQUITY 172,106 185,842 185,388
-----------------------------------------
Total liabilities and
shareholders' equity $2,385,360 2,485,080 2,488,733
===========================================
Number of common shares
outstanding, in thousands 26,774 26,792 26,745
</TABLE>
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<PAGE>
CONSOLIDATED STATEMENTS OF INCOME
(dollars in thousands, except per share data)
<TABLE>
<CAPTION>
Three Months Ended
09/30/99 06/30/99 09/30/98
<S> <C> <C> <C>
Interest income
Loans $26,706 26,466 27,726
Investments 11,453 10,950 10,009
Federal funds sold 3,932 4,182 6,439
----------------------------------------
Total interest income 42,091 41,598 44,174
Interest expense
Deposits 16,799 17,132 20,947
Borrowings 1,472 1,481 1,858
----------------------------------------
Total interest expense 18,271 18,613 22,805
----------------------------------------
Net interest income 23,820 22,985 21,369
Provision for loan losses 1,000 1,500 450
----------------------------------------
Net interest income after
provision for loan losses 22,820 21,485 20,919
Net securities transactions (1,153) (657) 135
Noninterest income 5,051 4,907 4,580
Noninterest expense 11,500 11,353 11,757
----------------------------------------
Income before income taxes 15,218 14,382 13,877
Income tax expense 5,246 4,890 4,668
----------------------------------------
Net income $9,972 9,492 9,209
========================================
Net income per share:
- Basic $0.37 0.35 0.34
- Diluted 0.36 0.34 0.33
Avg equivalent shares outstanding, in thousands:
- Basic 26,861 26,888 26,774
- Diluted 27,976 27,964 27,913
========================================
</TABLE>
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<PAGE>
CONSOLIDATED STATEMENTS OF INCOME
(dollars in thousands, except per share data)
Nine Months Ended
09/30/99 09/30/98
Interest income
Loans $79,732 83,413
Investments 33,293 30,121
Federal funds sold 12,330 17,857
------------------------
Total interest income 125,355 131,391
Interest expense
Deposits 51,722 61,689
Borrowings 4,401 5,329
------------------------
Total interest expense 56,123 67,018
------------------------
Net interest income 69,232 64,373
Provision for loan losses 4,013 3,380
------------------------
Net interest income after
provision for loan losses 65,219 60,993
Net securities transactions (2,230) 271
Noninterest income 15,798 14,345
Noninterest expense 35,055 34,585
------------------------
Income before income taxes 43,732 41,024
Income tax expense 14,945 14,771
------------------------
Net income $28,787 26,253
========================
Net income per share:
- Basic $1.07 0.98
- Diluted 1.03 0.94
Avg equivalent shares outstanding, in thousands:
- Basic 26,874 26,820
- Diluted 27,977 27,933
========================
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<PAGE>
CONSOLIDATED AVERAGE BALANCE SHEETS
(in thousands)
<TABLE>
<CAPTION>
Three Months Ended
09/30/99 06/30/99 09/30/98
<S> <C> <C> <C>
Total assets $2,407,449 2,433,144 2,467,769
Shareholders' equity 174,485 184,460 182,659
Total loans 1,331,901 1,324,286 1,316,518
Interest earning assets 2,340,493 2,356,714 2,376,702
Interest-bearing liabilities 2,032,121 2,058,334 2,103,895
Nine Months Ended
09/30/99 09/30/98
Total assets $2,427,688 2,427,422
Shareholders' equity 181,792 178,087
Total loans 1,325,113 1,308,171
Interest earning assets 2,351,310 2,333,186
Interest-bearing liabilities 2,053,126 2,072,387
</TABLE>
###
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