Attached files
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| 8-K - TRUSTCO BANK CORP NY 8-K 10-20-2009 - TRUSTCO BANK CORP N Y | form8k.htm |
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News
Release
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5
Sarnowski Drive, Glenville, New York, 12302
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(518)
377-3311 Fax: (518) 381-3668
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Subsidiary: Trustco
Bank
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NASDAQ
-- TRST
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Contact:
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Kevin
T. Timmons
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Vice
President/Treasurer
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(518)
381-3607
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FOR
IMMEDIATE RELEASE:
TrustCo
Announces Third Quarter
Profit
Increase of 47%
Glenville, New York – October 20,
2009
TrustCo
Bank Corp NY (TrustCo, Nasdaq:
TRST) today announced net income for the third quarter of 2009 of
$7.9 million, equal to diluted earnings per share of $0.103, as compared to net
income of $5.4 million and diluted earnings per share of $0.070 for the
immediately preceding quarter, an increase of 47%. The quarter was
marked by continued margin improvement compared to the second quarter of
2009. Making the earnings announcement was Robert J. McCormick,
Chairman, President and Chief Executive Officer. Mr. McCormick noted,
“We are pleased that third quarter results continued a 2009 trend of solid
earnings and growth. We look forward to the remainder of the year
with cautious optimism as our internal trends remain
positive.” Return on average equity and return on average assets were
13.09% and 0.87%, respectively, for the third quarter of 2009, compared to 9.10%
and 0.61% for the second quarter of 2009.
In the
third quarter of 2008, net income was $9.0 million and earnings per share were
$0.119. This resulted in return on average equity and return on average assets
of 15.41% and 1.05%, respectively, for the third quarter of 2008.
Mr.
McCormick also noted “While some aspects of the financial and economic problems
that hurt many financial institutions in 2007 and 2008 have eased somewhat in
2009, other core economic issues remain, particularly the ongoing loss of jobs
nationally and regionally. TrustCo’s long-term focus on traditional
lending criteria and conservative balance sheet management has helped us avoid
most aspects of these problems. This has enabled us to maintain an
extremely strong balance sheet and continued profitability,
and allowed us to focus on conducting business rather than putting out
fires. We are particularly encouraged by another quarter of strong
expansion of our net interest margin, and by the flattening of our
non-performing assets. As a further indication of our success
relative to our peers, Trustco Bank was named the
eighth best performing bank in the country by the ABA Banking Journal
out of all banks with assets of more than $3 billion.”
-5-
For the
first nine months of 2009 net income was $19.6 million and resulted in diluted
earnings per share of $0.257, as compared to the first nine months of 2008 that
resulted in net income of $26.9 million and diluted earnings per share of
$0.356. FDIC insurance premiums increased by $5.0 million in the
first nine months of 2009 compared to the first nine months of
2008. Return on average equity and return on average assets were
11.04% and 0.75%, respectively, for the first nine months of 2009 and 15.53% and
1.05% for the comparable period in 2008.
TrustCo
continued to report strong growth in loans and deposits on a year-over-year
basis. For the quarter ended September 30, 2009, average loans were
up $160.4 million or 7.8% compared to the same period in 2008, while average
deposits rose $180.4 million or 5.9% over the same period. Five new
offices were opened during the first nine months of 2009, bringing the total to
129. Seventeen offices were opened during 2008. The branch
expansion program will be substantially completed in 2009 with a limited number
of new branches planned in the markets currently served. Mr.
McCormick noted that, “We are pleased with the results of our expansion program
but are mindful that achieving our goals will take time and continued hard
work. Our success in growing loans and deposits provides the basic
building blocks that we believe will help drive profit growth over the coming
years.”
The
Company’s net interest margin was 3.42% for the third quarter of 2009, compared
to 3.04% in the third quarter of 2008 and to 3.24% in the second quarter of
2009. The third quarter margin is the highest since the third quarter
of 2006. Net income was also impacted by a loan loss provision of
$3.2 million for the third quarter of 2009, compared to a provision of $1.0
million in the third quarter of 2008 and a provision of $2.8 million for the
second quarter of 2009. As previously discussed, the FDIC’s plan to
recapitalize the insurance fund included a special deposit insurance premium in
the second quarter that was levied on all banks including TrustCo.
Nonperforming
loans were virtually unchanged at $44.1 million as of September 30, 2009,
compared to $43.9 million as of June 30, 2009, and remain at manageable
levels. The allowance for loan losses as a percentage of gross loans
and as a multiple of net charge-offs remains strong. At September 30,
2009, nonperforming loans were equal to 1.97% of total loans, down slightly from
2.01% at the end of the second quarter. The allowance for loan losses
was unchanged at 0.8 times nonperforming loans. Reserves to total
loans were also unchanged at 1.65%, and covered annualized third quarter net
charge-offs by 3.7 times. Gross charge-offs declined from $3.21
million in the second quarter of 2009 to $2.85 million in the third quarter of
2009, while net charge-offs declined from $2.76 million to $2.49 million over
that same period.
-6-
TrustCo
Bank Corp is a $3.7 billion bank holding company and through its subsidiary,
Trustco Bank, operates 129 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.
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, (5) real estate and
collateral values, and (6) changes in local market areas 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.
-7-
TRUSTCO
BANK CORP NY
GLENVILLE,
NY
FINANCIAL
HIGHLIGHTS
(dollars
in thousands, except per share data)
(Unaudited)
| Three Months Ended | ||||||||||||
|
09/30/09
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06/30/09
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09/30/08
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||||||||||
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Summary
of operations
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Net
interest income (TE)
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$ | 30,070 | 27,790 | 25,292 | ||||||||
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Provision
for loan losses
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3,150 | 2,760 | 1,000 | |||||||||
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Net
securities transactions
|
892 | (41 | ) | 21 | ||||||||
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Net
trading gains (losses)
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(6 | ) | (36 | ) | 14 | |||||||
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Noninterest
income
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4,114 | 3,996 | 4,759 | |||||||||
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Noninterest
expense
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18,686 | 20,358 | 14,726 | |||||||||
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Net
income
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7,909 | 5,380 | 9,034 | |||||||||
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Per
common share
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||||||||||||
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Net
income per share:
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||||||||||||
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-
Basic
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$ | 0.103 | 0.070 | 0.119 | ||||||||
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-
Diluted
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0.103 | 0.070 | 0.119 | |||||||||
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Cash
dividends
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0.063 | 0.063 | 0.110 | |||||||||
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Tangible
Book value at period end
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3.19 | 3.11 | 3.17 | |||||||||
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Market
price at period end
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6.25 | 5.89 | 11.71 | |||||||||
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At
period end
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Full
time equivalent employees
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727 | 726 | 696 | |||||||||
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Full
service banking offices
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129 | 129 | 118 | |||||||||
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Performance
ratios
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Return
on average assets
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0.87 | % | 0.61 | 1.05 | ||||||||
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Return
on average equity (1)
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13.09 | 9.10 | 15.41 | |||||||||
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Efficiency
(2)
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52.51 | 56.61 | 48.99 | |||||||||
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Net
interest spread (TE)
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3.23 | 3.02 | 2.74 | |||||||||
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Net
interest margin (TE)
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3.42 | 3.24 | 3.04 | |||||||||
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Dividend
payout ratio
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60.49 | 88.77 | 92.36 | |||||||||
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Capital
ratios at period end (3)
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Total
equity to assets
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6.65 | % | 6.66 | 6.91 | ||||||||
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Tier
1 risk adjusted capital
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12.45 | 12.45 | 12.62 | |||||||||
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Total
risk adjusted capital
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13.71 | 13.71 | 13.88 | |||||||||
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Asset
quality analysis at period end
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Nonperforming
loans to total loans
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1.97 | % | 2.01 | 1.11 | ||||||||
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Nonperforming
assets to total assets
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1.41 | 1.42 | 0.71 | |||||||||
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Allowance
for loan losses to total loans
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1.65 | 1.65 | 1.68 | |||||||||
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Coverage
ratio (4)
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0.8 | X | 0.8 | 1.5 | ||||||||
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(1)
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Average
equity excludes the effect of accumulated other comprehensive loss of $9
thousand for the three months ended 9/30/09 and accumulated other
comprehensive income of $526 thousand and $5.0 million for the three
months ended 6/30/09 and 9/30/08, respectively. Including these
items, return on average equity is 13.09%, 9.08% and 15.08% for the three
months ended 9/30/09, 6/30/09, and 9/30/08,
respectively.
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(2)
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Calculated
as noninterest expense (excluding other real estate owned income/expense,
specialized consulting and any one-time charges) divided by taxable
equivalent net interest income plus noninterest income (excluding net
securities transactions, net trading gains and losses and one-time income
items).
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(3)
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Capital
ratios exclude the effect of accumulated other comprehensive income
(loss).
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(4)
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Calculated
as allowance for loan losses divided by total nonperforming
loans.
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TE =
Taxable equivalent.
-8-
FINANCIAL
HIGHLIGHTS, Continued
(dollars
in thousands, except per share data)
(Unaudited)
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Nine
Months Ended
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09/30/09
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09/30/08
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Summary
of operations
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Net
interest income (TE)
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$ | 82,867 | 74,654 | |||||
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Provision
for loan losses
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7,910 | 2,000 | ||||||
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Net
securities transactions
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962 | 439 | ||||||
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Net
trading (losses) gains
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(350 | ) | (229 | ) | ||||
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Noninterest
income
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13,652 | 13,062 | ||||||
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Noninterest
expense
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57,525 | 43,637 | ||||||
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Net
income
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19,638 | 26,930 | ||||||
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Per
common share
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Net
income per share:
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-
Basic
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$ | 0.257 | 0.356 | |||||
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-
Diluted
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0.257 | 0.356 | ||||||
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Cash
dividends
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0.235 | 0.330 | ||||||
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Tangible
Book value at period end
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3.19 | 3.17 | ||||||
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Market
price at period end
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6.25 | 11.71 | ||||||
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Performance
ratios
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Return
on average assets
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0.75 | % | 1.05 | |||||
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Return
on average equity (1)
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11.04 | 15.53 | ||||||
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Efficiency
(2)
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56.77 | 49.65 | ||||||
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Net
interest spread (TE)
|
2.98 | 2.65 | ||||||
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Net
interest margin (TE)
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3.20 | 3.00 | ||||||
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Dividend
payout ratio
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91.37 | 92.74 | ||||||
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(1)
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Average
equity excludes the effect of accumulated other comprehensive income of
$94 thousand and $6.9 million for the nine months ended 9/30/09 and
9/30/08, respectively. Including these items, return on average
equity is 11.03% and 15.09% for the nine months ended 9/30/09 and 9/30/08,
respectively.
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(2)
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Calculated
as noninterest expense (excluding other real estate owned income/expense,
specialized consulting and any one-time charges) divided by taxable
equivalent net interest income plus noninterest income (excluding net
securities transactions, net trading gains and losses and one-time income
items).
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TE =
Taxable equivalent.
-9-
CONSOLIDATED
STATEMENTS OF FINANCIAL CONDITION
(dollars
in thousands)
(Unaudited)
|
09/30/09
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12/31/08
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09/30/08
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||||||||||
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ASSETS
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||||||||||||
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Loans,
net
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$ | 2,194,811 | 2,127,189 | 2,051,007 | ||||||||
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Trading
securities
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1,040 | 116,326 | 252,879 | |||||||||
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Securities
available for sale
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558,222 | 676,002 | 524,480 | |||||||||
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Held
to maturity securities
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552,052 | 264,689 | 110,688 | |||||||||
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Federal
funds sold and other short-term investments
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223,795 | 207,680 | 340,627 | |||||||||
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Total
earning assets
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3,529,920 | 3,391,886 | 3,279,681 | |||||||||
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Cash
and due from banks
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40,145 | 41,924 | 61,725 | |||||||||
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Bank
premises and equipment
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37,359 | 35,156 | 32,840 | |||||||||
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Other
assets
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42,954 | 37,847 | 54,026 | |||||||||
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Total
assets
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$ | 3,650,378 | 3,506,813 | 3,428,272 | ||||||||
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LIABILITIES
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Deposits:
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Demand
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$ | 258,960 | 249,887 | 258,461 | ||||||||
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Interest-bearing
checking
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371,373 | 331,144 | 317,568 | |||||||||
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Savings
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640,983 | 609,444 | 598,349 | |||||||||
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Money
market
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354,194 | 285,829 | 287,285 | |||||||||
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Certificates
of deposit (in denominations of $100,000 or more)
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503,662 | 455,062 | 415,100 | |||||||||
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Other
time deposits
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1,133,917 | 1,204,905 | 1,176,279 | |||||||||
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Total
deposits
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3,263,089 | 3,136,271 | 3,053,042 | |||||||||
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Short-term
borrowings
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121,894 | 109,592 | 110,221 | |||||||||
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Long-term
debt
|
- | - | 5 | |||||||||
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Other
liabilities
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20,727 | 24,926 | 23,886 | |||||||||
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Total
liabilities
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3,405,710 | 3,270,789 | 3,187,154 | |||||||||
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SHAREHOLDERS'
EQUITY
|
244,668 | 236,024 | 241,118 | |||||||||
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Total
liabilities and shareholders' equity
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$ | 3,650,378 | 3,506,813 | 3,428,272 | ||||||||
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Number
of common shares outstanding, in thousands
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76,537 | 76,084 | 75,867 | |||||||||
-10-
CONSOLIDATED
STATEMENTS OF INCOME
(dollars
in thousands, except per share data)
(Unaudited)
| Three Months Ended | ||||||||||||
|
09/30/09
|
06/30/09
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09/30/08
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||||||||||
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Interest
income
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||||||||||||
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Loans
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$ | 31,184 | 31,094 | 31,066 | ||||||||
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Investments
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9,397 | 8,065 | 8,988 | |||||||||
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Federal
funds sold and other short term investments
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565 | 622 | 1,999 | |||||||||
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Total
interest income
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41,146 | 39,781 | 42,053 | |||||||||
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Interest
expense
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||||||||||||
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Deposits
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11,187 | 12,196 | 16,871 | |||||||||
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Borrowings
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422 | 340 | 483 | |||||||||
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Total
interest expense
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11,609 | 12,536 | 17,354 | |||||||||
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Net
interest income
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29,537 | 27,245 | 24,699 | |||||||||
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Provision
for loan losses
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3,150 | 2,760 | 1,000 | |||||||||
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Net
interest income after provision for loan losses
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26,387 | 24,485 | 23,699 | |||||||||
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Net
securities transactions
|
892 | (41 | ) | 21 | ||||||||
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Trading
gains (losses)
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(6 | ) | (36 | ) | 14 | |||||||
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Noninterest
income
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4,114 | 3,996 | 4,759 | |||||||||
|
Noninterest
expense
|
18,686 | 20,358 | 14,726 | |||||||||
|
Income
before income taxes
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12,701 | 8,046 | 13,767 | |||||||||
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Income
tax expense
|
4,792 | 2,666 | 4,733 | |||||||||
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Net
income
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$ | 7,909 | 5,380 | $ | 9,034 | |||||||
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Net
income per share:
|
||||||||||||
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-
Basic
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$ | 0.103 | 0.070 | $ | 0.119 | |||||||
|
-
Diluted
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$ | 0.103 | 0.070 | $ | 0.119 | |||||||
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Avg
equivalent shares outstanding, in thousands:
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||||||||||||
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-
Basic
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76,526 | 76,421 | 75,833 | |||||||||
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-
Diluted
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76,526 | 76,421 | 75,845 | |||||||||
-11-
CONSOLIDATED
STATEMENTS OF INCOME
(dollars
in thousands, except per share data)
(Unaudited)
|
Nine
Months Ended
|
||||||||
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09/30/09
|
09/30/08
|
|||||||
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Interest
income
|
||||||||
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Loans
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$ | 93,469 | 91,880 | |||||
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Investments
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24,819 | 29,532 | ||||||
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Federal
funds sold and other short term investments
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1,705 | 8,017 | ||||||
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Total
interest income
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119,993 | 129,429 | ||||||
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Interest
expense
|
||||||||
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Deposits
|
37,526 | 55,351 | ||||||
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Borrowings
|
1,227 | 1,508 | ||||||
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Total
interest expense
|
38,753 | 56,859 | ||||||
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Net
interest income
|
81,240 | 72,570 | ||||||
|
Provision
for loan losses
|
7,910 | 2,000 | ||||||
|
Net
interest income after provision for loan losses
|
73,330 | 70,570 | ||||||
|
Net
securities transactions
|
962 | 439 | ||||||
|
Trading
(losses) gains
|
(350 | ) | (229 | ) | ||||
|
Noninterest
income
|
13,652 | 13,062 | ||||||
|
Noninterest
expense
|
57,525 | 43,637 | ||||||
|
Income
before income taxes
|
30,069 | 40,205 | ||||||
|
Income
tax expense
|
10,431 | 13,275 | ||||||
|
Net
income
|
$ | 19,638 | 26,930 | |||||
|
Net
income per share:
|
||||||||
|
-
Basic
|
$ | 0.257 | 0.356 | |||||
|
-
Diluted
|
$ | 0.257 | 0.356 | |||||
|
Avg
equivalent shares outstanding, in thousands:
|
||||||||
|
-
Basic
|
76,329 | 75,672 | ||||||
|
-
Diluted
|
76,329 | 75,680 | ||||||
-12-