TrustCo Announces Third Quarter Net Income Up 10%




TrustCo Bank Corp NY (TrustCo) (Nasdaq:TRST) announced net income for the third quarter of 2011 of $9.2 million, up 10.4% over the prior-year period and equal to diluted earnings per share of $0.100, as compared to net income of $8.4 million and diluted earnings per share of $0.109 for the third quarter of 2010. Third quarter 2011 per share results include the effect of the common stock offering completed on July 6, 2011.

The Company also noted that third quarter 2010 results included one-time tax items that provided a net benefit of $836 thousand. On a pre-tax basis, earnings were up 25.0% from $11.5 million in the third quarter of 2010 to $14.4 million in the third quarter of 2011. The third quarter of 2011 also saw continued core balance sheet growth.

Robert J. McCormick, President and Chief Executive Officer noted, "We are pleased that the third quarter resulted in solid earnings gains, continued core loan and deposit growth and a decline of approximately $1.3 million in nonperforming assets versus the second quarter, and we look forward to the remainder of 2011 and 2012 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 TrustCo for continued growth and profitability."

For the first nine months of 2011 net income was $24.4 million and resulted in diluted earnings per share of $0.296, as compared to the first nine months of 2010 net income of $22.4 million and diluted earnings per share of $0.292. Net income was up 8.7% from the first nine months of 2010 to the first nine months of 2011, and income before taxes was up 12.7%. Return on average equity and return on average assets were 11.38% and 0.80%, respectively, for the first nine months of 2011 and 11.83% and 0.80% for the comparable period in 2010.

On July 6, 2011 the Company completed an offering of 15.6 million common shares, raising net proceeds of $67.6 million. The additional capital significantly improved the Company's capital position, with the tangible equity ratio rising from 6.59% at June 30, 2011 to 8.04% at September 30, 2011. Tangible book value per share also increased, from $3.47 per share to $3.62 per share over that period. Mr. McCormick noted that "Our strengthened capital position prepares us for continued balance sheet growth in the future."

TrustCo Bank Corp NY is a $4.2 billion bank holding company and through its subsidiary, Trustco Bank, operates 135 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.

For more information about TRST please visit http://www.trustcobank.com

Read the full article and the disclaimer at: http://drstockpick.com/?p=22673