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): July 15, 2003
(July 15, 2003)
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.)
5 Sarnowski Drive, Glenville, New York 12302
(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 July 15, 2003, discussing
second quarter results for 2003. 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
July 15, 2003, with second
quarter 2003 results.
99(b) Press release dated July 15,
2003, with second quarter 2003
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: July 15, 2003
TrustCo Bank Corp NY
(Registrant)
By:/s/ Robert T. Cushing
------------------------
Robert T. Cushing
President and Chief
Executive 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 July 15,
2003, with second quarter 2003 results. 5
99(b) Press release dated July 15, 2003,
with second quarter 2003 results. 6-8
4
Robert M. Leonard
Vice President
(518) 381-3693
Glenville, New York -- July 15, 2003
FOR IMMEDIATE RELEASE:
TrustCo Bank Corp NY
(dollars in thousands, except per share data)
6/03 6/02
Three Months Ended June 30:
Net Income $ 13,411 12,571
Provision for Loan Losses 300 300
Average Equivalent Shares Outstanding:
Basic 74,369,000 72,152,000
Diluted 75,237,000 74,455,000
Net Income per Share:
Basic $ 0.180 0.174
Diluted 0.178 0.169
Six Months Ended June 30:
Net Income $ 26,603 24,939
Provision for Loan Losses 600 820
Average Equivalent Shares Outstanding:
Basic 74,309,000 71,967,000
Diluted 75,210,000 74,371,000
Net Income per Share:
Basic $ 0.358 0.347
Diluted 0.354 0.335
Period End:
Total Assets $ 2,683,165 2,751,957
Total Nonperforming Loans 3,936 6,530
Total Nonperforming Assets 3,936 6,798
Allowance for Loan Losses 49,528 55,968
Allowance as a Percentage
of Total Loans 3.88% 3.68%
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News Release
NASDAQ-TRST
Contact: Robert M. Leonard
Vice President
518-381-3693
FOR IMMEDIATE RELEASE:
TrustCo Announces Record High
Second Quarter and Year to Date 2003 Results
Glenville, New York - July 15, 2003
TrustCo Bank Corp NY (TrustCo, NASDAQ: TRST) announced that it achieved record
quarterly results for the second quarter of 2003 and for the first six months of
the year. The 2003 results reflect strong performance with respect to earning
assets, recurring non-interest income, and operating efficiencies. The
performance for the first half of 2003 resulted in TrustCo attaining a return on
average equity of 26.15%. Making the announcement was Robert T. Cushing, and
Robert J. McCormick, President and Chief Executive Officers of TrustCo Bank Corp
NY and Trustco Bank, respectively.
Net income for the second quarter of 2003 was $13.4 million, or $0.178 diluted
earnings per share, compared to $12.6 million, or $0.169 diluted earnings per
share, for the second quarter of 2002. The second quarter results reflect an
increase of 6.7% in net income and 5.3% in diluted earnings per share over the
comparable period in 2002.
Year to date results reflect significant increases in both net income and
diluted earnings per share between 2002 and 2003. For the six months ended June
30, 2003 net income was $26.6 million and diluted earnings per share were
$0.354, compared to net income of $24.9 million and diluted earnings per share
of $0.335 for the comparable six month period in 2002. The six-month results
reflect an increase of 6.7% in net income and 5.7% in diluted earnings per share
for 2003 compared to the same six-month period in 2002.
Commenting on the results for 2003, they noted, "The current quarter and the
year to date 2003 results are tremendous, and set the stage for continued growth
into the second half of this year. These record results are the product of
executing several initiatives at TrustCo to strengthen asset quality, and reduce
operating expenses."
Further, Mr. Cushing and Mr. McCormick noted, "Our branch expansion program
continues to introduce the TrustCo product line to new communities. Lake Mary
Blvd., our 2nd office in the Orlando, Florida area opened in June. This is our
64th branch overall. Our intention is to open five additional sites, in New York
and Florida, in the second half of 2003. We are excited at the opportunities
available to expand, and we are delighted by the reception we have received in
all the new communities that we are serving."
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Expense controls are one of the cornerstones of the operating philosophy of
TrustCo. For the second quarter of 2003, TrustCo had an operating efficiency
ratio of 37.57% and 38.05% for the six months results. This compares to the
operating efficiency ratio for 2002's second quarter of 37.13% and the six
months results of 37.54%. "A consistent element of our strategy is to expand the
value of the TrustCo franchise while at the same time maintaining our operating
cost at levels that place us among the most efficient banking operations in the
country. For the second quarter, our operating efficiency ratio of 37.57% places
TrustCo as a world class leader in expense controls", they noted.
The single most important ratio for measuring the performance of TrustCo
continues to be return on average equity. The second quarter return on average
equity was 26.25% for 2003 compared to 26.65% for 2002.
Asset quality indicators continued to be strong during the quarter with
non-performing assets as a percentage of total assets decreasing from 0.25% at
June 30, 2002 to 0.15% at June 30, 2003. The allowance for loan losses is $49.5
million at June 30, 2003 and represents 3.88% of loans outstanding.
TrustCo Bank Corp NY is a $2.7 billion bank holding company and through its
subsidiary, Trustco Bank, operates 64 offices in Albany, Columbia, Dutchess,
Greene, Montgomery, Rensselaer, Rockland, Saratoga, Schenectady, Schoharie,
Warren, Washington, and Westchester Counties in New York, Bennington County in
Vermont, and Seminole County in Florida. In addition, the bank operates a full
service Trust Department that has $916 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.
Except for the 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) changes in the regulatory
environment, and (5) 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 in the forward-looking
statements.
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TRUSTCO BANK CORP NY
GLENVILLE, NY
FINANCIAL HIGHLIGHTS
(dollars in thousands, except per share data)
Three Months Ended
06/30/2003 03/31/2003 06/30/2002
Summary of operations
Net interest income (TE) $26,140 $25,630 $25,669
Provision for loan losses 300 300 300
Net securities transactions 2,234 3,096 1,904
Noninterest income 5,274 4,754 5,831
Noninterest expense 12,579 12,669 13,717
Net income 13,411 13,192 12,571
Per common share
Net income per share:
- Basic 0.180 0.178 0.174
- Diluted 0.178 0.175 0.169
Cash dividends 0.150 0.150 0.150
Tangible Book value at period end 3.16 3.12 3.00
Market price at period end 11.06 9.63 13.17
At period end
Full time equivalent employees 492 472 468
Full service banking offices 64 63 60
Performance ratios
Return on average assets 1.98 % 1.99 1.85
Return on average equity (1) 26.25 26.18 26.65
Efficiency (2) 37.57 38.55 37.13
Net interest spread (TE) 3.74 3.69 3.58
Net interest margin (TE) 4.00 3.96 3.94
Dividend payout ratio 83.01 84.14 86.16
Capital ratios at period end (3)
Total equity to assets 7.76 7.75 6.92
Tier 1 risk adjusted capital 16.33 15.63 13.57
Total risk adjusted capital 17.62 16.91 14.86
Asset quality analysis at period end
Nonperforming loans to total loans 0.31 % 0.41 0.43
Nonperforming assets to total assets 0.15 0.21 0.25
Allowance for loan losses to total loans 3.88 3.79 3.68
Coverage ratio (4) 12.6 X 9.3 X 8.6
(1) Average equity excludes the effect of the market value adjustment for securities
available for sale.
(2) Calculated as noninterest expense (excluding ORE income/expense, amortization of intangibles
and any unique charges) divided by taxable equivalent net interest income plus
noninterest income (excluding net securities transactions).
(3) Capital ratios exclude the effect of the market value adustment for securities
available for sale.
(4) Calculated as allowance for loan losses divided by total nonperforming loans.
TE = Taxable equivalent.
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CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(dollars in thousands)
06/30/2003 12/31/2002 06/30/2002
ASSETS
Loans, net $1,226,805 1,369,743 $1,463,872
Securities available for sale 964,160 653,163 616,680
Federal funds sold and other short-term investments 378,175 542,125 538,491
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Total earning assets 2,569,140 2,565,031 2,619,043
Cash and due from banks 55,927 63,957 48,852
Bank premises and equipment 19,372 19,544 19,211
Other assets 38,726 47,556 64,851
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Total assets $2,683,165 2,696,088 $2,751,957
=================================================================
LIABILITIES
Deposits:
Demand $194,642 178,058 $198,165
Interest-bearing checking 312,851 338,740 305,687
Savings 769,476 715,349 714,405
Money market 145,010 130,914 127,157
Certificates of deposit (in denominations of $100,000 or more) 151,907 137,513 120,522
Other time deposits 761,696 773,694 766,642
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Total deposits 2,335,582 2,274,268 2,232,578
Short-term borrowings 71,283 141,231 237,886
Long-term debt 334 427 516
Other liabilities 41,538 45,318 63,767
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Total liabilities 2,448,737 2,461,244 2,534,747
SHAREHOLDERS' EQUITY 234,428 234,844 217,210
-----------------------------------------------------------------
Total liabilities and
shareholders' equity $2,683,165 2,696,088 $2,751,957
=================================================================
Number of common shares
outstanding, in thousands 74,120 74,178 72,173
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CONSOLIDATED STATEMENTS OF INCOME
(dollars in thousands, except per share data)
Three Months Ended
06/30/2003 03/31/2003 06/30/2002
Interest income
Loans 22,722 $24,586 28,275
Investments 10,541 9,160 8,399
Federal funds sold and other short term investments 1,482 1,655 2,278
-----------------------------------------------------------------
Total interest income 34,745 35,401 38,952
Interest expense
Deposits 10,082 11,353 14,259
Borrowings 264 353 848
-----------------------------------------------------------------
Total interest expense 10,346 11,706 15,107
-----------------------------------------------------------------
Net interest income 24,399 23,695 23,845
Provision for loan losses 300 300 300
-----------------------------------------------------------------
Net interest income after
provision for loan losses 24,099 23,395 23,545
Net securities transactions 2,234 3,096 1,904
Noninterest income 5,274 4,754 5,831
Noninterest expense 12,579 12,669 13,717
-----------------------------------------------------------------
Income before income taxes 19,028 18,576 17,563
Income tax expense 5,617 5,384 4,992
-----------------------------------------------------------------
Net income $13,411 $13,192 $12,571
=================================================================
Net income per share:
- Basic $0.180 $0.178 $0.174
- Diluted $0.178 0.175 $0.169
Avg equivalent shares outstanding, in thousands:
- Basic 74,369 74,248 72,152
- Diluted 75,237 75,185 74,455
=================================================================
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CONSOLIDATED AVERAGE STATEMENTS OF FINANCIAL CONDITION
(in thousands)
Three Months Ended
06/30/2003 03/31/2003 06/30/2002
Total assets $2,716,166 2,690,016 2,720,741
Shareholders' equity $231,770 231,836 213,899
Total loans $1,307,353 1,384,910 1,526,323
Securities available for sale $832,516 647,942 566,341
Interest-earning assets $2,615,344 2,573,408 2,605,561
Interest-bearing deposits $2,135,035 2,099,877 2,014,135
Interest-bearing liabilities $2,259,803 2,248,579 2,259,223
Demand deposits $187,977 173,436 190,949
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