EX-99.A 2 ex99_a.htm EXHIBIT 99(A) ex99_a.htm

Exhibit 99(a)
 
logo
     News Release
 
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 First Quarter
Net Income Increase of 6.4%


Glenville, New York –April 19, 2011


TrustCo Bank Corp NY (TrustCo, Nasdaq: TRST) today announced net income for the first quarter of 2011 of $7.4 million, up 6.4% over the prior-year period and equal to diluted earnings per share of $0.096, as compared to net income of $6.9 million and diluted earnings per share of $0.090 for the first quarter of 2010.   The first quarter of 2011 also saw continued core balance sheet growth.  Making the earnings announcement was Robert J. McCormick, President and Chief Executive Officer.  Mr. McCormick noted, “We are pleased that first quarter results continued 2010’s solid earnings and growth, and look forward to the remainder of 2011 with optimism as our internal trends remain positive.  The banking industry still faces challenges, but the progress we have made this year has helped to position the Company for continued growth and profitability.”  Return on average equity and return on average assets were 11.61% and 0.75%, respectively, for the first quarter of 2011, compared to 11.29% and 0.77% for the first quarter of 2010.

Mr. McCormick also noted “We are beginning to see signs of economic improvement both nationally and locally, although some core problems remain, particularly the high level of unemployment.  Our long-term focus on traditional lending criteria and conservative balance sheet management has helped us avoid most aspects of the problems that have afflicted many banks in recent years.  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 the continued growth of our core loan and deposit portfolios.”

 
-4-

 

TrustCo continued to report strong growth in loans and deposits on a year-over-year basis.  For the quarter ended March 31, 2011, average loans were up $66.5 million or 2.9% compared to the same period in 2010, while average deposits rose $284.2 million or 8.7% over the same period.  One new office was opened during the first quarter of 2011, bringing the total to 134.  Mr. McCormick noted that, “We are pleased with the progress that we have made in growing loans and deposits through our recently completed branch expansion program but are mindful that fully achieving our goals will take time and continued hard work.  Our success in growing customer relationships provides the basic building blocks that we believe will help drive profit growth over the coming years.”

Nonperforming loans were $50.4 million as of March 31, 2011, compared to $48.8 million as of December 31, 2010, 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 March 31, 2011, nonperforming loans were equal to 2.14% of total loans, up slightly from 2.07% at the end of the fourth quarter.  The allowance for loan losses was unchanged at 0.9 times nonperforming loans.  Reserves to total loans was strengthened, increasing from 1.78% at December 31, 2010 to 1.85% at March 31, 2011, and covered annualized first quarter net charge-offs by 3.9 times.

TrustCo Bank Corp is a $4.0 billion bank holding company and through its subsidiary, Trustco Bank, operates 134 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.

 
-5-

 

TRUSTCO BANK CORP NY
GLENVILLE, NY

FINANCIAL HIGHLIGHTS

(dollars in thousands, except per share data)
(Unaudited)

    Three Months Ended  
   
03/31/11
   
12/31/10
   
03/31/10
 
Summary of operations
                 
Net interest income (TE)
  $ 32,924       32,353       32,298  
Provision for loan losses
    4,600       5,500       4,700  
Noninterest income
    3,984       3,720       3,860  
Noninterest expense
    20,846       20,656       20,089  
Net income
    7,382       6,904       6,935  
                         
Per common share
                       
Net income per share:
                       
- Basic
  $ 0.096       0.090       0.090  
- Diluted
    0.096       0.090       0.090  
Cash dividends
    0.066       0.066       0.063  
Tangible Book value at period end
    3.34       3.31       3.26  
Market price at period end
    5.93       6.34       6.17  
                         
At period end
                       
Full time equivalent employees
    740       738       730  
Full service banking offices
    134       133       133  
                         
Performance ratios
                       
Return on average assets
    0.75 %     0.71       0.77  
Return on average equity
    11.61       10.49       11.29  
Efficiency (1)
    52.18       53.25       50.15  
Net interest spread (TE)
    3.31       3.33       3.48  
Net interest margin (TE)
    3.40       3.43       3.62  
Dividend payout ratio
    68.67       73.33       69.19  
                         
Capital ratios at period end (2)
                       
Total equity to assets
    6.55 %     6.56       6.72  
Tier 1 risk adjusted capital
    12.66       12.57       12.35  
Total risk adjusted capital
    13.92       13.83       13.60  
                         
Asset quality analysis at period end
                       
Nonperforming loans to total loans
    2.14 %     2.07       2.05  
Nonperforming assets to total assets
    1.42       1.42       1.50  
Allowance for loan losses to total loans
    1.85       1.78       1.73  
Coverage ratio (3)
    0.9 X     0.9       0.8  

(1)
Calculated as noninterest expense (excluding ORE income/expense and any one-time charges) divided by taxable equivalent net interest income plus noninterest income (excluding net securities transactions, unrealized trading gains and losses and one-time income items).
(2)
Capital ratios exclude the effect of accumulated other comprehensive income.
(3)
Calculated as allowance for loan losses divided by total nonperforming loans.
TE = Taxable equivalent.
 
 
-6-

 

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(dollars in thousands)
(Unaudited)

   
03/31/11
   
12/31/10
   
03/31/10
 
                   
                   
ASSETS
                 
                   
Loans, net
  $ 2,315,449       2,313,354       2,249,237  
Securities available for sale
    1,015,466       891,601       773,884  
Held to maturity securities
    171,351       191,712       247,733  
Federal funds sold and other short-term investments
    353,566       400,183       298,107  
                         
Total earning assets
    3,855,832       3,796,850       3,568,961  
                         
Cash and due from banks
    37,022       44,067       39,626  
Bank premises and equipment
    36,275       36,632       37,449  
Other assets
    78,761       77,235       72,727  
                         
Total assets
  $ 4,007,890       3,954,784       3,718,763  
                         
LIABILITIES
                       
Deposits:
                       
Demand
  $ 247,803       251,091       240,822  
Interest-bearing checking
    443,133       441,520       404,374  
Savings
    859,799       774,366       684,868  
Money market
    626,669       602,803       476,067  
Certificates of deposit (in denominations of $100,000 or more)
    455,563       456,837       450,951  
Other time deposits
    960,074       1,027,470       1,075,749  
                         
Total deposits
    3,593,041       3,554,087       3,332,831  
                         
Short-term borrowings
    137,710       124,615       116,306  
Other liabilities
    18,667       20,642       19,008  
                         
Total liabilities
    3,749,418       3,699,344       3,468,145  
                         
SHAREHOLDERS' EQUITY
    258,472       255,440       250,618  
                         
Total liabilities and shareholders' equity
  $ 4,007,890       3,954,784       3,718,763  
                         
Number of common shares outstanding, in thousands
    77,244       77,130       76,761  

 
-7-

 

CONSOLIDATED STATEMENTS OF INCOME
(dollars in thousands, except per share data)
(Unaudited)

    Three Months Ended  
   
03/31/11
   
12/31/10
   
03/31/10
 
                   
Interest income
                 
Loans
  $ 31,677       32,122       31,753  
Investment securities
    7,694       7,227       9,411  
Federal funds sold and other short term investments
    246       259       164  
                         
Total interest income
    39,617       39,608       41,328  
                         
Interest expense
                       
Deposits
    6,668       7,250       9,076  
Borrowings
    407       427       456  
                         
Total interest expense
    7,075       7,677       9,532  
                         
Net interest income
    32,542       31,931       31,796  
                         
Provision for loan losses
    4,600       5,500       4,700  
                         
Net interest income after provision for loan losses
    27,942       26,431       27,096  
                         
Net securities transactions
    287       877       4  
Noninterest income
    3,984       3,720       3,860  
Noninterest expense
    20,846       20,656       20,089  
                         
Income before income taxes
    11,367       10,372       10,871  
Income tax expense
    3,985       3,468       3,936  
                         
Net income
  $ 7,382       6,904       6,935  
                         
                         
Net income per share:
                       
- Basic
  $ 0.096       0.090       0.090  
- Diluted
    0.096       0.090       0.090  
                         
Avg equivalent shares outstanding, in thousands:
                       
- Basic
    77,241       77,113       76,758  
- Diluted
    77,241       77,113       76,758  
 
 
-8-