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): April 20, 1999
(April 20, 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
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TrustCo Bank Corp NY
Item 5. Other Events
Two press releases were issued on April 20, 1999, discussing
first quarter results for 1999. Attached are the press
releases labeled as exhibit 99(a) and 99(b).
Item 7 (c) Exhibits
Reg S-K Exhibit No. Description
99(a)
One page press release dated
April 20, 1999, with first
quarter 1999 results.
99(b) Press release dated April 20,
1999, with first quarter 1999
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.
Date: April 20, 1999
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 April 20,
1999, highlighting first quarter 1999 results. 5
99(b) Press release dated April 20, 1999,
highlighting first quarter 1999 results. 6
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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
FOR IMMEDIATE RELEASE:
<TABLE>
TrustCo Bank Corp NY
(dollars in thousands, except per share data)
<CAPTION>
3/99 3/98
Three Months Ended March 31
<S> <C> <C>
Net Income $ 9,323 8,378
Provision for Loan Losses 1,513 1,372
Average Equivalent Shares Outstanding:
Basic 26,873,000 26,888,000
Diluted 27,992,000 27,975,000
Net Income per Share:
Basic $ 0.35 0.31
Diluted 0.33 0.30
Period End:
Total Assets $2,434,163 2,395,839
Total Nonperforming Loans 12,107 11,698
Total Nonperforming Assets 15,057 18,993
Allowance for Loan Losses 54,772 53,984
Allowance as a Percentage
of Total Loans 4.16% 4.14%
</TABLE>
Note: All share and per share information is adjusted for the 15% stock split
declared August 1998.
# # #
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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 RECORD FIRST QUARTER 1999 RESULTS
Schenectady, New York - April 20, 1999
TrustCo Bank Corp NY (TrustCo, NASDAQ: TRST) today announced record first
quarter earnings results. Net income for the three months ended March 31, 1999
was $9.3 million compared to $8.4 million for 1998, an increase of 11.3%.
Diluted earnings per share were $0.33 for the first quarter 1999 compared to
$0.30 for 1998, an increase of 10%. Return on average assets and return on
average stockholders' equity were 1.55% and 22.45% for 1999, and 1.43% and
21.12% for 1998, respectively.
Robert A. McCormick, TrustCo's President and Chief Executive Officer, commented
on the strong results for the first quarter, "We are pleased with the momentum
that we are carrying into 1999. The first quarter results sets the stage for a
solid year in 1999, and I am confident that we will be able to meet our goal of
a 22% return on equity for the year."
For any financial institution, the single largest contributor to net income is
taxable equivalent net interest income, which for TrustCo increased to $23.4
million for the first quarter of 1999 compared to $22.5 million for the
comparable period in 1998. The growth in TrustCo's taxable equivalent net
interest income is the result of a combination of growth in the average balance
of interest earning assets and a slight increase in the net interest margin. Mr.
McCormick noted "We have undertaken several initiatives in response to the
existing low interest rate environment to better position TrustCo for increased
profitability. We are fortunate in that we have a solid and growing base of
strong and recurring earnings."
Continued focus on expense controls has resulted in a first quarter efficiency
ratio of 41.3% for 1999 compared to 39.1% for 1998. TrustCo has consistently
been recognized as a leader in expense control, and the first quarter efficiency
ratio
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continues that tradition. Mr. McCormick noted, "The consistently strong
financial performance that TrustCo has posted over the last 15 years is the
result of a focus on the fundamentals. We are proud of our expense control
policies, while at the same time we look to take advantage of market
opportunities for strategic growth in our balance sheet. TrustCo delivers to its
customers competitively priced and conveniently obtained products and services."
Also during the first quarter, TrustCo paid common stock cash dividends of
$0.275 per share in 1999, compared to $0.239 per share in 1998, representing a
dividend payout ratio of over 79% in 1999 compared to 77% in 1998. Commenting on
the significant cash dividends that TrustCo paid to its shareholders, Mr.
McCormick stated, "We retain within TrustCo sufficient capital to meet our needs
for growth and to continue our classification as a "well capitalized"
institution for regulatory purposes. It has been our practice to return to our
owners any capital that we cannot effectively utilize."
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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TRUSTCO BANK CORP NY Page 1
SCHENECTADY, NY
<TABLE>
(dollars in thousands, except per share data)
<CAPTION>
Three Months Ended
03/31/99 12/31/98 03/31/98
Summary of operations
<S> <C> <C> <C>
Net interest income (TE) $23,387 22,197 22,520
Provision for loan losses 1,513 1,230 1,372
Net securities transactions (420) 727 32
Noninterest income 5,840 6,779 4,522
Noninterest expense 12,202 14,180 11,529
Net income 9,323 8,762 8,378
Per common share (1) Net income per share:
- Basic 0.35 0.33 0.31
- Diluted 0.33 0.31 0.30
Cash dividends 0.275 0.275 0.239
Book value at period end 6.88 6.94 6.60
Market price at period end 25.00 30.00 24.67
At period end
Full time equivalent employees 477 480 467
Full service banking offices 53 53 51
Performance ratios
Return on average assets 1.55 % 1.42 1.43
Return on average equity (2) 22.45 20.90 21.12
Efficiency (3) 41.31 41.92 39.11
Net interest spread (TE) 3.49 3.30 3.45
Net interest margin (TE) 3.94 3.79 3.92
Dividend payout ratio 79.42 84.24 76.62
Capital ratios at period end (4)
Total equity to assets 6.98 6.78 6.83
Tier 1 risk adjusted capital 13.14 12.77 13.01
Total risk adjusted capital 14.43 14.06 14.30
Asset quality analysis at period end
Nonperforming loans to total loans 0.92 0.94 0.90
Nonperforming assets to total assets 0.62 0.71 0.79
Allowance for loan losses to total loans 4.16 4.11 4.14
Coverage ratio (5) 4.5 X 4.4 X 4.6 X
(1) All share and per share information is adjusted for the 15% stock split
declared August, 1 (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>
CONSOLIDATED BALANCE SHEETS Page 2
(dollars in thousands)
<CAPTION>
03/31/99 12/31/98 03/31/98
ASSETS
<S> <C> <C> <C>
Loans, net $1,263,416 1,268,328 1,248,873
Securities available for sale 681,160 717,410 621,017
Other short-term investments 0 24,979 0
Federal funds sold 364,000 358,000 403,000
Total earning assets 2,308,576 2,368,717 2,272,890
Cash and due from banks 38,233 41,950 34,579
Bank premises and equipment 15,824 17,022 18,033
Other assets 71,530 57,391 70,337
Total assets $2,434,163 2,485,080 2,395,839
LIABILITIES
Deposits:
Demand $146,107 154,358 131,019
Interest-bearing checking 261,458 266,027 238,672
Savings 665,592 660,376 657,674
Money Market 58,941 58,061 57,091
Certificates of deposit > $100 thou 122,053 139,310 122,481
Other time deposits 806,407 829,282 836,370
Total deposits 2,060,558 2,107,414 2,043,307
Short-term borrowings 144,350 147,924 131,778
Other liabilities 44,038 43,900 43,776
Total liabilities 2,248,946 2,299,238 2,218,861
SHAREHOLDERS' EQUITY 185,217 185,842 176,978
Total liabilities and
shareholders' equity $2,434,163 2,485,080 2,395,839
Number of common shares
outstanding, in thousands 26,911 26,792 26,811
</TABLE>
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<TABLE>
CONSOLIDATED STATEMENTS OF INCOME Page 3
(dollars in thousands, except per share data)
<CAPTION>
Three Months Ended
03/31/99 12/31/98 03/31/98
Interest income
<S> <C> <C> <C>
Loans $26,560 27,222 27,882
Investments 10,890 10,758 10,399
Federal funds sold 4,216 4,679 5,122
Total interest income 41,666 42,659 43,403
Interest expense
Deposits 17,791 19,907 20,188
Borrowings 1,448 1,422 1,567
Total interest expense 19,239 21,329 21,755
Net interest income 22,427 21,330 21,648
Provision for loan losses 1,513 1,230 1,372
Net interest income after
provision for loan losses 20,914 20,100 20,276
Net securities transactions (420) 727 32
Noninterest income 5,840 6,779 4,522
Noninterest expense 12,202 14,180 11,529
Income before income taxes 14,132 13,426 13,301
Income tax expense 4,809 4,664 4,923
Net income $9,323 8,762 8,378
Net income per share:
- Basic $0.35 0.33 0.31
- Diluted 0.33 0.31 0.30
Avg equivalent shares outstanding, in thousands:
- Basic 26,873 26,795 26,888
- Diluted 27,992 28,014 27,975
</TABLE>
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<TABLE>
CONSOLIDATED AVERAGE BALANCE SHEETS Page 4
(in thousands)
<CAPTION>
Three Months Ended
03/31/99 12/31/98 03/31/98
<S> <C> <C> <C>
Total assets $2,442,857 2,450,492 2,378,660
Shareholders' equity 186,563 186,084 175,927
Total loans 1,319,010 1,323,228 1,301,320
Interest earning assets 2,356,900 2,355,604 2,280,370
Interest-bearing liabilities 2,069,330 2,075,911 2,033,968
</TABLE>
