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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 18, 2006
TrustCo Bank Corp NY
(Exact name of registrant as specified in its charter)
NEW YORK 0-10592 14-1630287
State or Other Jurisdiction Commission File No. I.R.S. Employer
of 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 18, 2006, TrustCo Bank Corp NY ("TrustCo") issued a
press release with year to date and second quarter results for
the period ending June 30, 2006. 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 July 18, 2006, for
the period ending June 30, 2006,
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 18, 2006
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 18, 2006, 5 - 12
highlighting year to date and second
quarter 2006 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: Robert M. Leonard
Administrative Vice President
(518) 381-3693
FOR IMMEDIATE RELEASE
TrustCo Announces Second Quarter Results
Glenville, New York - July 18, 2006 TrustCo Bank Corp NY (TrustCo, Nasdaq:
TRST) today announced results for the second quarter of 2006 and for the first
six months of the year. Net income for the second quarter of 2006 was $12.4
million, compared to $15.0 million for 2005. Diluted earnings per share were
$0.165 for the second quarter compared to $0.199 for the second quarter of
2005. Return on average assets and return on average equity were 1.69% and
21.44% for the second quarter of 2006 compared to 2.11% and 26.52% for the
second quarter of 2005. For 2006 the second quarter net income represents an
increase of $58 thousand over the net income for the first quarter. Though
down from a year ago, we are encouraged by this upward trend for net income in
the second quarter.
Net income for the six months ending June 30, 2006 was $24.8 million, or $0.330
in diluted earnings per share, compared to $29.9 million, or $0.396 in diluted
earnings per share, for the six month period ending June 30, 2005.
Robert J. McCormick, President and Chief Executive Officer, commented, "As we
have previously discussed, the flat or inverted interest rate yield curve
continues. This has resulted in there being little or no margin between
short-term and long-term interest rates, which in turn places a downward
pressure on earnings. Our initiative to grow out of these downward pressures is
continuing to show momentum. As of June 30, 2006, total loans have increased
$275.9 million and total deposits have increased $143.8 million compared to
June 30, 2005. The increases in deposits and loans have come from all the
markets we serve, and we are pleased with these results."
5
Trustco recently opened its New City office, which is located in Rockland
County, New York. This is their 84th branch with approximately four additional
openings planned during the third quarter of 2006.
TrustCo is a $3.0 billion bank holding company and through its subsidiary,
Trustco Bank, operates 84 offices in New York, New Jersey, Vermont, and
Florida. In addition, the Bank operates a full service Trust Department. The
common shares of TrustCo are traded on the Nasdaq Global Market 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 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)
Three Months Ended
06/30/06 03/31/06 06/30/05
Summary of operations
Net interest income (TE) $ 25,704 26,245 27,600
Provision (credit) for loan losses (1,775) (1,800) (1,580)
Net securities transactions - (288) 1,255
Noninterest income 3,917 3,593 5,029
Noninterest expense 11,986 11,925 11,607
Net income 12,424 12,366 14,985
Per common share
Net income per share:
- Basic $ 0.166 0.165 0.200
- Diluted 0.165 0.164 0.199
Cash dividends 0.160 0.160 0.150
Tangible Book value at period end 2.86 2.96 3.12
Market price at period end 11.02 12.17 13.06
At period end
Full time equivalent employees 532 530 501
Full service banking offices 84 82 77
Performance ratios
Return on average assets 1.69 % 1.73 2.11
Return on average equity (1) 21.44 21.61 26.52
Efficiency (2) 41.48 39.82 36.37
Net interest spread (TE) 3.15 3.33 3.72
Net interest margin (TE) 3.56 3.70 3.98
Dividend payout ratio 96.28 96.83 75.12
Capital ratios at period end (3)
Total equity to assets 7.89 % 7.99 8.00
Tier 1 risk adjusted capital 15.45 16.07 17.03
Total risk adjusted capital 16.72 17.34 18.31
Asset quality analysis at period end
Nonperforming loans to total loans 0.32 % 0.22 0.23
Nonperforming assets to total assets 0.17 0.12 0.11
Allowance for loan losses to total loans 2.63 2.88 3.60
Coverage ratio (4) 8.3 X 12.8 15.9
(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 and any
nonrecurring 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 adjustment for
securities available for sale.
(4) Calculated as allowance for loan losses divided by total nonperforming
loans.
TE = Taxable equivalent.
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FINANCIAL HIGHLIGHTS, Continued
Six Months Ended
06/30/06 06/30/05
Summary of operations
Net interest income (TE) $ 51,949 53,452
Provision (credit) for loan losses (3,575) (3,080)
Net securities transactions (288) 4,907
Noninterest income 7,510 9,017
Noninterest expense 23,911 22,839
Net income 24,790 29,892
Per common share
Net income per share:
- Basic $ 0.331 0.399
- Diluted 0.330 0.396
Cash dividends 0.320 0.300
Tangible Book value at period end 2.86 3.12
Market price at period end 11.02 13.06
Performance ratios
Return on average assets 1.71 % 2.12
Return on average equity (1) 21.52 26.67
Efficiency (2) 40.65 38.13
Net interest spread (TE) 3.24 3.61
Net interest margin (TE) 3.63 3.87
Dividend payout ratio 96.56 75.29
(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 and any
nonrecurring charges) divided by taxable equivalent net interest income
plus noninterest income (excluding net securities transactions).
TE = Taxable equivalent.
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CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(dollars in thousands)
06/30/06 12/31/05 06/30/05
ASSETS
Loans, net $ 1,567,516 1,425,342 1,285,986
Securities available for sale 1,090,247 1,084,076 1,133,091
Federal funds sold and other short-term investments 171,708 257,196 336,002
-------------- ------------- --------------
Total earning assets 2,829,471 2,766,614 2,755,079
Cash and due from banks 43,561 55,667 50,242
Bank premises and equipment 22,669 21,734 21,135
Other assets 72,088 68,744 52,331
-------------- ------------- --------------
Total assets $ 2,967,789 2,912,759 2,878,787
============== ============= ==============
LIABILITIES
Deposits:
Demand $ 249,686 251,012 231,700
Interest-bearing checking 290,239 309,668 320,357
Savings 715,540 725,336 797,152
Money market 266,181 190,560 146,823
Certificates of deposit (in denominations of
$100,000 or more) 234,608 225,611 189,781
Other time deposits 875,437 860,300 802,033
-------------- ------------- --------------
Total deposits 2,631,691 2,562,487 2,487,846
Short-term borrowings 90,599 87,935 84,404
Long-term debt 73 87 100
Due to broker - - 40,607
Other liabilities 31,266 33,589 31,602
-------------- ------------- --------------
Total liabilities 2,753,629 2,684,098 2,644,559
SHAREHOLDERS' EQUITY 214,160 228,661 234,228
-------------- ------------- --------------
Total liabilities and
shareholders' equity $ 2,967,789 2,912,759 2,878,787
============== ============= ==============
Number of common shares
outstanding, in thousands 74,828 74,776 74,896
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CONSOLIDATED STATEMENTS OF INCOME
(dollars in thousands, except per share data)
Three Months Ended
06/30/06 03/31/06 06/30/05
Interest income
Loans $ 25,470 24,351 20,988
Investments 14,201 13,866 12,831
Federal funds sold and other short term
investments 2,271 2,492 3,197
-------------- ------------- --------------
Total interest income 41,942 40,709 37,016
Interest expense
Deposits 16,056 14,419 9,887
Borrowings 962 779 421
-------------- ------------- --------------
Total interest expense 17,018 15,198 10,308
-------------- ------------- --------------
Net interest income 24,924 25,511 26,708
Provision (credit) for loan losses (1,775) (1,800) (1,580)
-------------- ------------- --------------
Net interest income after
provision for loan losses 26,699 27,311 28,288
Net securities transactions - (288) 1,255
Noninterest income 3,917 3,593 5,029
Noninterest expense 11,986 11,925 11,607
-------------- ------------- --------------
Income before income taxes 18,630 18,691 22,965
Income tax expense 6,206 6,325 7,980
-------------- ------------- --------------
Net income $ 12,424 12,366 14,985
============== ============= ==============
Net income per share:
- Basic $ 0.166 0.165 0.200
- Diluted $ 0.165 0.164 0.199
Avg equivalent shares outstanding, in thousands:
- Basic 74,894 74,871 75,056
- Diluted 75,112 75,263 75,369
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CONSOLIDATED STATEMENTS OF INCOME
(dollars in thousands, except per share data)
Six Months Ended
06/30/06 06/30/05
Interest income
Loans $ 49,821 40,970
Investments 28,067 23,931
Federal funds sold and other short term investments 4,763 7,000
-------------- -------------
Total interest income 82,651 71,901
Interest expense
Deposits 30,475 19,517
Borrowings 1,741 816
-------------- -------------
Total interest expense 32,216 20,333
Net interest income 50,435 51,568
Provision (credit) for loan losses (3,575) (3,080)
-------------- -------------
Net interest income after
provision for loan losses 54,010 54,648
Net securities transactions (288) 4,907
Noninterest income 7,510 9,017
Noninterest expense 23,911 22,839
-------------- -------------
Income before income taxes 37,321 45,733
Income tax expense 12,531 15,841
-------------- -------------
Net income $ 24,790 29,892
============== =============
Net income per share:
- Basic $ 0.331 0.399
- Diluted $ 0.330 0.396
Avg equivalent shares outstanding, in thousands:
- Basic 74,883 74,972
- Diluted 75,188 75,429
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CONSOLIDATED AVERAGE STATEMENTS OF FINANCIAL CONDITION
(in thousands)
Three Months Ended
06/30/06 03/31/06 06/30/05
Total assets $ 2,946,441 2,898,342 2,844,487
Shareholders' equity 215,412 225,030 228,129
Total loans 1,567,535 1,495,867 1,299,284
Securities available for sale 1,129,033 1,099,024 1,024,768
Interest-earning assets 2,882,392 2,819,811 2,770,552
Interest-bearing deposits 2,356,285 2,311,333 2,273,100
Interest-bearing liabilities 2,455,573 2,403,167 2,354,702
Demand deposits 247,029 241,903 233,138
Six Months Ended
06/30/06 06/30/05
Total assets $ 2,922,526 2,843,406
Shareholders' equity 220,194 228,332
Total loans 1,531,898 1,275,550
Securities available for sale 1,114,112 949,857
Interest-earning assets 2,851,642 2,762,772
Interest-bearing deposits 2,333,934 2,276,151
Interest-bearing liabilities 2,429,516 2,358,235
Demand deposits 244,480 229,789
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