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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): July 17, 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 July 17, 2007, TrustCo Bank Corp NY ("TrustCo") issued a
press release with year to date and second quarter results for
the period ending June 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
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99(a) Press release dated July 17, 2007, for
the period ending June 30, 2007,
regarding year to date and second
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: July 17, 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 July 17, 2007, 5 - 12
highlighting year to date and second
quarter 2007 results.
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TRUSTCO Exhibit 99 (a)
Bank Corp NY News Release
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5 Sarnowski Drive, Glenville, New York, 12302
(518) 377-3311 Fax: (518) 381-3668
Subsidiary: Trustco Bank NASDAQ -- TRST
Contact: Kevin T. Timmons
Administrative Vice President
(518) 381-3607
FOR IMMEDIATE RELEASE
TrustCo Announces Second Quarter 2007 Results
Glenville, New York - July 17, 2007
TrustCo Bank Corp NY (TrustCo, Nasdaq: TRST) today announced that net income
for the second quarter of 2007 was $8.1 million compared to $12.4 million for
the comparable 2006 quarter. As previously announced, the results included net
trading portfolio losses of $2.8 million related to the change in value during
the second quarter of 2007 of this portfolio. Diluted earnings per share were
$0.108 for the second quarter of 2007, compared to $0.165 for the same period
in 2006. Return on average equity and return on average assets were 14.13% and
0.98%, respectively for the second quarter of 2007 compared to 20.59% and 1.69%
for the second quarter of 2006.
For the first half of 2007 net income was $20.4 million and resulted in diluted
earnings per share of $0.272, as compared to the comparable period of 2006
which resulted in net income of $24.8 million and diluted earnings per share of
$0.330. Return on average assets and return on average equity was 1.27% and
17.88%, respectively, for the first six months of 2007 and 1.71% and 20.67% for
the comparable period in 2006.
As noted, second quarter results included net trading portfolio losses of $2.8
million. After adoption of fair value accounting under Statement of Financial
Accounting Standards No. 159 "The Fair Value Option for Financial Assets and
Liabilities" (SFAS 159) in the first quarter, $517 million of longer duration
securities were sold in the second quarter of 2007. The appreciation in fair
value of the trading portfolio during the first quarter of 2007 resulted in an
unrealized gain of $3.4 million, which was included in first quarter results.
The actual sales of the securities resulted in the $2.8 million loss recorded
in the current period. The securities sold had an average remaining life of
approximately nine years. The proceeds were primarily invested in securities
with maturities of six months and continue to be recorded at fair value. The
transaction
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allowed the Company to significantly reduce its exposure to rising rates on its
securities portfolio while maintaining the yield at about the same level and
increasing flexibility going forward.
The growth of TrustCo's deposits and loans continue to show impressive results.
For the quarter ended June 30, 2007, average deposits were up $353 million or
13.6% compared to second quarter of 2006. Average loans showed similar results,
rising $253 million or 16.2% compared to the same period in 2006. Much of the
success can be attributed to the branch growth initiative. During the second
quarter of 2007, TrustCo opened nine offices to bring the total to 101. 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."
TrustCo has again been nationally recognized. In its April 2007 edition, US
Banker Magazine, a leading industry publication, ranked TrustCo 6th among the
top 200 mid-tier banks in the country. In May, SNL Financial ranked TrustCo as
the 5th best performing thrift institution of the nation's 100 largest public
thrifts. This marks the third consecutive year in which the Company has ranked
in the top seven in this study. Commenting on these achievements, Mr. McCormick
stated "In a difficult market environment for banks, TrustCo continues to be
ranked as one of the top institutions in its peer group in the nation. We have
accomplished this through diligent expense controls and being ever mindful of
asset quality."
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."
Nonperforming loans continue at low levels. At the end of the second quarter
nonperforming loans were 0.50% of total loans outstanding, compared to 0.32% in
the prior year. In addition, the allowance for loan losses is 3.8 times
nonperforming loans, compared to 6.8 times in the prior year.
On May 15th the Board of Directors declared a quarterly cash dividend of $0.16
per share, which shareholders received in early July. This dividend equates to
an annualized yield of 6.48% based on the June 30, 2007 closing stock price.
TrustCo Bank Corp is a $3.4 billion bank holding company and through its
subsidiary, Trustco Bank, operates 101 offices in New York, New Jersey,
Vermont, Massachusetts, and Florida.
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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.
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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TRUSTCO BANK CORP NY
GLENVILLE, NY
FINANCIAL HIGHLIGHTS
(dollars in thousands, except per share data)
(Unaudited)
Three Months Ended
06/30/07 03/31/07 06/30/06
Summary of operations
Net interest income (TE) $ 24,752 24,506 25,704
Provision (credit) for loan losses - - (1,775)
Net securities transactions - - -
Net trading (losses) gains (2,841) 3,445 -
Noninterest income 3,987 4,103 3,917
Noninterest expens 13,458 12,706 11,986
Net income 8,107 12,314 12,424
Per common share
Net income per share:
- Basic $ 0.108 0.164 0.166
- Diluted 0.108 0.164 0.165
Cash dividends 0.160 0.160 0.160
Tangible Book value at period end 3.06 3.20 2.98
Market price at period end 9.88 9.58 11.02
At period end
Full time equivalent employees 610 570 532
Full service banking offices 101 95 84
Performance ratios
Return on average assets 0.98 % 1.57 1.69
Return on average equity (1) 14.13 21.67 20.59
Efficiency (2) 46.20 43.76 41.48
Net interest spread (TE) 2.63 2.73 3.15
Net interest margin (TE) 3.07 3.16 3.56
Dividend payout ratio 148.02 97.29 96.28
Capital ratios at period end (3)
Total equity to assets 6.87 % 7.24 8.21
Tier 1 risk adjusted capital 13.29 14.02 16.07
Total risk adjusted capital 14.55 15.28 17.33
Asset quality analysis at period end
Nonperforming loans to total loans 0.50 % 0.45 0.32
Nonperforming assets to total assets 0.28 0.26 0.17
Allowance for loan losses to total loans 1.90 1.96 2.16
Coverage ratio (4) 3.8 X 4.4 6.8
(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)
Six Months Ended
06/30/07 06/30/06
Summary of operations
Net interest income (TE) $ 49,258 51,949
Provision (credit) for loan losses - (3,575)
Net securities transactions - (288)
Net trading gains 604 -
Noninterest income 8,090 7,510
Noninterest expense 26,164 23,911
Net income 20,421 24,790
Per common share
Net income per share:
- Basic $ 0.272 0.331
- Diluted 0.272 0.330
Cash dividends 0.320 0.320
Tangible Book value at period end 3.06 2.98
Market price at period end 9.88 11.02
Performance ratios
Return on average assets 1.27 % 1.71
Return on average equity (1) 17.88 20.67
Efficiency (2) 44.98 40.65
Net interest spread (TE) 2.68 3.24
Net interest margin (TE) 3.11 3.63
Dividend payout ratio 117.43 96.56
(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)
06/30/07 12/31/06 06/30/06
ASSETS
Loans, net $ 1,813,280 1,726,898 1,575,116
Securities available for sale 502,833 1,048,270 1,090,247
Trading securities 450,198 - -
Federal funds sold and other short-term investments 470,174 243,449 171,708
--------------- ------------- --------------
Total earning assets 3,236,485 3,018,617 2,837,071
Cash and due from banks 45,820 47,889 43,561
Bank premises and equipment 27,858 24,050 22,669
Other assets 64,031 70,631 65,783
--------------- ------------- --------------
Total assets $ 3,374,194 3,161,187 2,969,084
=============== ============= ==============
LIABILITIES
Deposits:
Demand $ 268,579 259,401 249,686
Interest-bearing checking 282,919 290,784 290,239
Savings 647,331 662,310 715,540
Money market 343,962 310,719 266,181
Certificates of deposit (in denominations of $100,000 or more) 369,720 299,813 234,608
Other time deposits 1,110,025 976,356 875,437
--------------- ------------- --------------
Total deposits 3,022,536 2,799,383 2,631,691
Short-term borrowings 93,855 95,507 90,599
Long-term debt 44 59 73
Other liabilities 27,849 26,715 22,988
--------------- ------------- --------------
Total liabilities 3,144,284 2,921,664 2,745,351
SHAREHOLDERS' EQUITY 229,910 239,523 223,733
--------------- ------------- --------------
Total liabilities and
shareholders' equity $ 3,374,194 3,161,187 2,969,084
=============== ============= ==============
Number of common shares
outstanding, in thousands 75,016 74,873 74,828
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CONSOLIDATED STATEMENTS OF INCOME
(dollars in thousands, except per share data)
(Unaudited)
Three Months Ended
06/30/07 03/31/07 06/30/06
Interest income
Loans $ 29,566 28,631 25,470
Investments 11,126 13,211 14,201
Federal funds sold and other short term investments 6,856 3,439 2,271
--------------- ------------- -------------
Total interest income 47,548 45,281 41,942
Interest expense
Deposits 22,577 20,566 16,056
Borrowings 989 994 962
--------------- ------------- --------------
Total interest expense 23,566 21,560 17,018
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Net interest income 23,982 23,721 24,924
Provision (credit) for loan losses - - (1,775)
--------------- ------------- --------------
Net interest income after
provision for loan losses 23,982 23,721 26,699
Net securities transactions - - -
Trading gains (losses) (2,841) 3,445 -
Noninterest income 3,987 4,103 3,917
Noninterest expense 13,458 12,706 11,986
--------------- ------------- --------------
Income before income taxes 11,670 18,563 18,630
Income tax expense 3,563 6,249 6,206
--------------- ------------- --------------
Net income $ 8,107 12,314 12,424
=============== ============= ==============
Net income per share:
- Basic $ 0.108 0.164 0.166
- Diluted $ 0.108 0.164 0.165
Avg equivalent shares outstanding, in thousands:
- Basic 75,040 74,952 74,894
- Diluted 75,068 75,054 75,112
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CONSOLIDATED STATEMENTS OF INCOME
(dollars in thousands, except per share data)
(Unaudited)
Six Months Ended
06/30/07 06/30/06
Interest income
Loans $ 58,197 49,821
Investments 24,337 28,067
Federal funds sold and other short term investments 10,295 4,763
--------------- -------------
Total interest income 92,829 82,651
Interest expense
Deposits 43,143 30,475
Borrowings 1,983 1,741
--------------- -------------
Total interest expense 45,126 32,216
Net interest income 47,703 50,435
Provision (credit) for loan losses - (3,575)
--------------- -------------
Net interest income after
provision for loan losses 47,703 54,010
Net securities transactions - (288)
Trading gains 604 -
Noninterest income 8,090 7,510
Noninterest expense 26,164 23,911
--------------- -------------
Income before income taxes 30,233 37,321
Income tax expense 9,812 12,531
--------------- -------------
Net income $ 20,421 24,790
=============== =============
Net income per share:
- Basic $ 0.272 0.331
- Diluted $ 0.272 0.330
Avg equivalent shares outstanding, in thousands:
- Basic 74,996 74,883
- Diluted 75,061 75,188
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