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UNITED STATES
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 16, 2007
TrustCo Bank Corp NY
(Exact name of registrant as specified in its charter)
NEW YORK 0-10592 14-1630287
State or Other Jurisdiction of Commission File No. I.R.S. Employer
Incorporation or Organization Identification Number
5 SARNOWSKI DRIVE, GLENVILLE, NEW YORK 12302
(Address of principal executive offices)
(518) 377-3311
(Registrant's Telephone Number,
Including Area Code)
NOT APPLICABLE
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions:
|_| Written communications pursuant to Rule 425 under the Securities Act
(17 CFR 230.425)
|_| Soliciting material pursuant to Rule 14a-12 under the Exchange Act
(17 CFR 240.14a-12)
|_| Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act
(17 CFR 240.14d-2(b))
|_| Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act
(17 CFR 240.13e-4(c))
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TrustCo Bank Corp NY
Item 2.02. Results of Operations and Financial Condition
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On October 16, 2007, TrustCo Bank Corp NY ("TrustCo") issued a
press release with third quarter and year to date results for
the period ending September 30, 2007. Attached is a copy of the
press release labeled as Exhibit 99(a).
Item 9.01. Financial Statements and Exhibits
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(c) Exhibits
Reg S-K Exhibit No. Description
------------------- -----------
99(a) Press release dated October 16, 2007,
for the period ending September 30,
2007, regarding third quarter and 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: October 16, 2007
TrustCo Bank Corp NY
(Registrant)
By:/s/ Robert T. Cushing
----------------------------
Robert T. Cushing
Executive 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) Press release dated October 16, 2007, 5 - 12
for the period ending September 30, 2007,
regarding third quarter and year to date
results.
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[GRAPHIC OMITTED][GRAPHIC OMITTED]
5 Sarnowski Drive, Glenville, New York, 12302
(518) 377-3311 Fax: (518) 381-3668
Subsidiary: Trustco Bank NASDAQ -- TRST
Contact: Kevin T. Timmons
Vice President/Treasurer
(518) 381-3607
FOR IMMEDIATE RELEASE:
TrustCo Announces Third Quarter 2007 Results
Glenville, New York - October 16, 2007
TrustCo Bank Corp NY (TrustCo, Nasdaq: TRST) today announced that net income
for the third quarter of 2007 was $10.6 million compared to $11.2 million for
the comparable 2006 quarter. Diluted earnings per share were $0.141 for the
third quarter of 2007, compared to $0.149 for the same period in 2006. Return
on average equity and return on average assets were 18.45% and 1.26%,
respectively for the third quarter of 2007 compared to 18.15% and 1.48% for the
third quarter of 2006.
For the first nine months of 2007 net income was $31.1 million and resulted in
diluted earnings per share of $0.413, as compared to the first nine months of
2006 which resulted in net income of $36.0 million and diluted earnings per
share of $0.479. Return on average equity and return on average assets were
18.07% and 1.27%, respectively, for the first nine months of 2007, and 19.81%
and 1.63% for the comparable period in 2006.
Compared to prior year results, the decline in net income in both the 2007
quarter and year-to-date periods is primarily a result of a decline in the
Company's net interest margin, brought about by the inverted yield curve, and
higher costs related to the expansion of the branch network. Also, for the nine
month periods, the Company recognized a credit to the provision for loan losses
of $3.6 million for 2006 and zero in 2007. This decline was another
contributing factor in the reduction in year-to-date net
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income for 2007 compared to 2006.
TrustCo continued to report impressive growth in both deposits and loans. For
the quarter ended September 30, 2007, average deposits were up $361.7 million
or 13.7% compared to the third quarter of 2006. Average loans showed similar
results, rising $235.2 million or 14.3% compared to the same period in 2006.
Much of the growth can be attributed to the Company's branch expansion
initiative. During the third quarter of 2007, TrustCo opened four offices to
bring the total to 105. Current plans call for the expansion program to
continue into 2008 with new branches planned in the markets currently served.
Robert J. McCormick, President and Chief Executive Officer noted that, "We are
pleased with the early results of our expansion program but are mindful that
achieving our profit goals will take time and continued hard work."
Mr. McCormick also noted "Press reports continue to cover the fallout related
to the subprime mortgage lending area. Subprime loans are mortgage loans to
borrowers who do not qualify for conventional loans due to poor credit,
employment issues, etc. TrustCo has never been involved in this type of
lending. We have always believed that mortgage loans are our most important
asset and growth is never an excuse to sacrifice credit quality. While the news
continues to report stories of mortgage lenders closing down or having to
dramatically restructure their businesses, TrustCo continues to make mortgages
to credit worthy applicants. In fact, the declining number of competitors in
the mortgage business may possibly create opportunities for our Company."
Nonperforming loans continue at low levels and reserve coverage of those loans
remains strong. At the end of the third quarter, nonperforming loans were equal
to 0.46% of total loans, while the allowance for loan losses was 3.9 times
nonperforming loans. At June 30, 2007, nonperforming loans were equal to 0.50%
of total loans and the allowance was 3.8 times nonperforming loans. Both
figures compare favorably to the industry. Looking at the most recent data
available, as of June 30, 2007, the average ratio of nonperforming loans to
total loans was 0.68% and the average of the allowance of loan losses to
nonperforming loans was 2.3 times for all publically traded thrifts as reported
by SNL Financial.
On August 21st the Board of Directors declared a quarterly cash dividend of
$0.16 per share, which shareholders received in early October. This dividend
equates to an annualized yield of 5.86% based on the closing stock price for
the third quarter.
TrustCo Bank Corp is a $3.34 billion bank holding company and through its
subsidiary, Trustco Bank, operates 105 offices in New York, New Jersey,
Vermont, Massachusetts, and Florida.
In addition, the Bank operates a full service Trust Department. The common
shares of TrustCo are traded on The NASDAQ Global Select Market under the
symbol TRST.
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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 containing future events or performance and assumptions and other
statements of historical facts.
TrustCo wishes to caution readers not to place undue reliance on any such
forward-looking statements, which speak only as of the date made. The following
important factors, among others, in some cases have affected and in the future
could affect TrustCo's actual results, and could cause TrustCo's actual
financial performance to differ materially from that expressed in any
forward-looking statement: (1) credit risk, (2) interest rate risk, (3)
competition, (4) changes in the regulatory environment, and (5) changes in
local market area and general business and economic trends. The foregoing list
should not be construed as exhaustive, and the Company disclaims any obligation
to subsequently revise any forward-looking statements to reflect events or
circumstances after the date of such statements, or to reflect the occurrence
of anticipated or unanticipated events.
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GLENVILLE, NY
FINANCIAL HIGHLIGHTS
(dollars in thousands, except per share data)
(Unaudited)
Three Months Ended
09/30/07 06/30/07 09/30/06
Summary of operations
Net interest income (TE) $ 25,314 24,752 25,164
Provision (credit) for loan losses - - -
Net securities transactions 226 3 24
Net trading gains (losses) 305 (2,844) -
Noninterest income 4,220 3,987 3,871
Noninterest expense 13,597 13,458 11,699
Net income 10,640 8,107 11,179
Per common share
Net income per share:
- Basic $ 0.142 0.108 0.149
- Diluted 0.141 0.108 0.149
Cash dividends 0.160 0.160 0.160
Tangible Book value at period end 3.12 3.06 3.16
Market price at period end 10.93 9.88 10.84
At period end
Full time equivalent employees 649 610 556
Full service banking offices 105 101 89
Performance ratios
Return on average assets 1.26 % 0.98 1.48
Return on average equity (1) 18.45 14.13 18.15
Efficiency (2) 45.99 46.20 40.09
Net interest spread (TE) 2.66 2.63 3.03
Net interest margin (TE) 3.10 3.07 3.46
Dividend payout ratio 113.02 148.02 107.12
Capital ratios at period end (3)
Total equity to assets 6.93 % 6.87 8.13
Tier 1 risk adjusted capital 13.44 13.29 15.73
Total risk adjusted capital 14.70 14.55 16.99
Asset quality analysis at period end
Nonperforming loans to total loans 0.46 % 0.50 0.38
Nonperforming assets to total assets 0.27 0.28 0.22
Allowance for loan losses to total loans 1.82 1.90 2.08
Coverage ratio (4) 3.9 X 3.8 5.5
(1) Average equity excludes the effect of accumulated other comprehensive
income (loss).
(2) Calculated as noninterest expense (excluding other real estate owned
income/expense, specialized consulting and any one-time charges) divided
by taxable equivalent net interest income plus noninterest income
(excluding net securities transactions, net trading gains and losses and
one-time income items).
(3) Capital ratios exclude the effect of accumulated other comprehensive
income (loss).
(4) Calculated as allowance for loan losses divided by
total nonperforming loans.
TE = Taxable equivalent.
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FINANCIAL HIGHLIGHTS, Continued
(dollars in thousands, except per share data)
(Unaudited)
Nine Months Ended
09/30/07 09/30/06
Summary of operations
Net interest income (TE) $ 74,573 77,113
Provision (credit) for loan losses - (3,575)
Net securities transactions 229 (264)
Net trading gains 906 -
Noninterest income 12,310 11,381
Noninterest expense 39,761 35,610
Net income 31,061 35,969
Per common share
Net income per share:
- Basic $ 0.414 0.480
- Diluted 0.413 0.479
Cash dividends 0.480 0.480
Tangible Book value at period end 3.12 3.16
Market price at period end 10.93 10.84
Performance ratios
Return on average assets 1.27 % 1.63
Return on average equity (1) 18.07 19.81
Efficiency (2) 45.22 40.46
Net interest spread (TE) 2.67 3.17
Net interest margin (TE) 3.11 3.57
Dividend payout ratio 115.91 99.84
(1) Average equity excludes the effect of accumulated other comprehensive
income (loss).
(2) Calculated as noninterest expense (excluding other real estate owned
income/expense, specialized consulting and any one-time charges) divided
by taxable equivalent net interest income plus noninterest income
(excluding net securities transactions, net trading gains and losses and
one-time income items).
TE = Taxable equivalent.
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CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(dollars in thousands)
(Unaudited)
09/30/07 12/31/06 09/30/06
ASSETS
Loans, net $ 1,876,753 1,726,898 1,653,802
Trading securities 450,513 - -
Securities available for sale 580,099 1,048,270 1,104,614
Held to maturity securities 25,000 - -
Federal funds sold and other short-term investments 274,396 243,449 103,079
-------------- -------------- --------------
Total earning assets 3,206,761 3,018,617 2,861,495
Cash and due from banks 48,275 47,889 49,324
Bank premises and equipment 28,656 24,050 23,848
Other assets 57,495 70,631 67,497
-------------- -------------- --------------
Total assets $ 3,341,187 3,161,187 3,002,164
============== ============== ==============
LIABILITIES
Deposits:
Demand $ 258,978 259,401 243,984
Interest-bearing checking 275,839 290,784 276,264
Savings accounts 619,251 662,310 682,272
Money market 358,131 310,719 307,412
Certificates of deposit (in denominations of $100,000 or more) 370,990 299,813 248,340
Other time deposits 1,101,221 976,356 890,991
-------------- -------------- --------------
Total deposits 2,984,410 2,799,383 2,649,263
Short-term borrowings 93,865 95,507 91,705
Long-term debt 36 59 66
Other liabilities 28,060 26,715 24,054
-------------- -------------- --------------
Total liabilities
3,106,371 2,921,664 2,765,088
SHAREHOLDERS' EQUITY 234,816 239,523 237,076
-------------- -------------- --------------
Total liabilities and
shareholders' equity $ 3,341,187 3,161,187 3,002,164
============== ============== ==============
Number of common shares
outstanding, in thousands 75,140 74,873 74,828
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CONSOLIDATED STATEMENTS OF INCOME
(dollars in thousands, except per share data)
(Unaudited)
Three Months Ended
09/30/07 06/30/07 09/30/06
Interest income
Loans $ 31,039 29,566 26,696
Investments 12,851 11,126 14,137
Federal funds sold and other short term investments 4,949 6,856 2,009
-------------- -------------- --------------
Total interest income 48,839 47,548 42,842
Interest expense
Deposits 23,342 22,577 17,489
Borrowings 942 989 990
-------------- -------------- --------------
Total interest expense 24,284 23,566 18,479
-------------- -------------- --------------
Net interest income 24,555 23,982 24,363
Provision (credit) for loan losses - - -
-------------- -------------- --------------
Net interest income after
provision for loan losses 24,555 23,982 24,363
Net securities transactions 226 - 24
Trading gains (losses) 305 (2,841) -
Noninterest income 4,220 3,987 3,871
Noninterest expense 13,597 13,458 11,699
-------------- -------------- --------------
Income before income taxes 15,709 11,670 16,559
Income tax expense 5,069 3,563 5,380
-------------- -------------- --------------
Net income $ 10,640 8,107 11,179
============== ============== ==============
Net income per share:
- Basic $ 0.142 0.108 0.149
- Diluted $ 0.141 0.108 0.149
Avg equivalent shares outstanding, in thousands:
- Basic 75,166 75,040 74,920
- Diluted 75,267 75,068 75,089
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CONSOLIDATED STATEMENTS OF INCOME
(dollars in thousands, except per share data)
(Unaudited)
Nine Months Ended
09/30/07 09/30/06
Interest income
Loans $ 89,236 76,517
Investments 37,188 42,204
Federal funds sold and other short term investments 15,244 6,772
-------------- --------------
Total interest income 141,668 125,493
Interest expense
Deposits 66,485 47,964
Borrowings 2,925 2,731
-------------- --------------
Total interest expense 69,410 50,695
Net interest income 72,258 74,798
Provision (credit) for loan losses - (3,575)
-------------- --------------
Net interest income after
provision for loan losses 72,258 78,373
Net securities transactions 229 (264)
Trading gains 906 -
Noninterest income 12,310 11,381
Noninterest expense 39,761 35,610
-------------- ---------------
Income before income taxes 45,942 53,880
Income tax expense 14,881 17,911
-------------- ---------------
Net income $ 31,061 35,969
============== ===============
Net income per share:
- Basic $ 0.414 0.480
- Diluted $ 0.413 0.479
Avg equivalent shares outstanding, in thousands:
- Basic 75,054 74,896
- Diluted 75,130 75,155
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