[2] Troy Financial Corporation Announces Fiscal 1999 Results and First Quarterly Dividend.TROY, N.Y.--(BUSINESS WIRE)--Nov. 1, 1999-- Troy Financial Corporation (the "Company") (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :TRYF), holding company for The Troy Savings Bank Troy Savings Bank, now owned by First Niagara Financial Group Inc. (FNFG) is a bank in Troy, Rensselaer County, New York, U.S.A.. It is notable for having a music hall constructed on the second floor above the bank itself (the Troy Savings Bank Music Hall (the "Bank"), today reported net income of $2.1 million for the fiscal year ended September September: see month. 30, 1999, compared to a $878,000 net loss for the fiscal year ended September 30, 1998. The Company's earnings per share were $0.32 for the year ended September 30, 1999. Year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. earnings per share calculations do not include earnings prior to the initial public offering on March 31, 1999. Also today, the Company announced that the Board of Directors declared de·clare v. de·clared, de·clar·ing, de·clares v.tr. 1. To make known formally or officially. See Synonyms at announce. 2. To state emphatically or authoritatively; affirm. 3. its first ever cash dividend of $0.05 per share for the fourth fiscal quarter ended September 30, 1999. Daniel Daniel, book of the Bible Daniel, book of the Bible. It combines "court" tales, perhaps originating from the 6th cent. B.C., and a series of apocalyptic visions arising from the time of the Maccabean emergency (167–164 B.C. J. Hogarty, Jr., Chairman, President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. stated, "We are very pleased that we are also in a position to begin paying dividends to our shareholders." The dividend will be payable on November November: see month. 30, 1999 to shareholders of record on November 10, 1999. Net income for the three months ended September 30, 1999 was $1.8 million as compared to a net loss of $2.4 million for the same quarter in 1998. The results in 1998 include a $2.7 million charge, on an after-tax basis After-tax basis The comparison basis used to analyze the net after-tax returns on a corporate taxable bond and a municipal tax-free bond. , for a $4.5 million contribution expense incurred in the fourth fiscal quarter of 1998 related to a binding, irrevocable Unable to cancel or recall; that which is unalterable or irreversible. IRREVOCABLE. That which cannot be revoked. 2. A will may at all times be revoked by the same person who made it, he having a disposing mind; but the moment the testator is commitment to a charitable foundation. Excluding the effect of this charge, net income would have been $309,000 for the fourth fiscal quarter of 1998. The Company's fully diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of were $0.16 for the quarter ended September 30, 1999. The Company became the bank holding company of the Bank on March 31, 1999 as part of the Bank's conversion from a mutual to a stock savings bank savings bank, financial institution that, until recently, performed only the following functions: receiving savings deposits of individuals, investing them, and providing a modest return to its depositors in the form of interest. . In the conversion, the Company raised net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). of $113.7 million and contributed 408,446 shares to The Troy Savings Bank Community Foundation. The Company's strategy to use these funds to originate o·rig·i·nate v. 1. To bring into being; create. 2. To come into being; start. loans has been successful as total loans have increased by $69.5 million since March 31, 1999. Total loans have increased by $101.3 million since September 30, 1998. Commercial real estate and commercial business loans represented the largest increases. The Company used $9.6 million of the net proceeds from the conversion to fund a loan to the Bank's employee stock ownership plan ("ESOP ESOP See: Employee Stock Ownership Plan ESOP See Employee Stock Ownership Plan (ESOP). ") which allowed the ESOP to purchase in the open market 971,122 shares of the common stock. Total consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: equity at September 30, 1999 is $180.4 million, or 19.72% of assets compared to $71.0 million at September 30, 1998. Commenting on highlights for the fiscal year ended September 30, 1999, Daniel J. Hogarty, Jr., Chairman, President and CEO stated: "The Company contributed the Troy Savings Bank Music Hall to the Troy Savings Bank Music Hall Foundation to preserve this magnificent Things known as Magnificent include:
"We are very pleased and excited that the Small Business Administration has given the Company approval to operate a 'small business investment company'. This is the first time that a savings bank has received such approval. We have already made two investments in local start-up companies start-up company A new business. as we continue to provide support for the economic growth and development of the communities we serve. "The Company is currently constructing its fifteenth In music, a fifteenth (sometimes abbreviated 15ma) is the interval between one musical note and another with one-quarter or quadruple the frequency. It corresponds to two octaves. It is the fourth harmonic. branch. The new branch will serve the community of Wynantskill in Rensselaer Rensselaer (rĕnsəlēr`, rĕn`sələr), city (1990 pop. 8,255), Rensselaer co., E N.Y., on the east bank of the Hudson River opposite Albany; settled 1630 by Dutch, inc. 1897. County and is scheduled to open in the first fiscal quarter of 2000. "The Company has received approval to purchase up to 9% of its stock as part of a stock repurchase Stock repurchase A firm's repurchase of outstanding shares of its common stock. program to commence in fiscal 2000 and to be completed by March 31, 2000. The Company will repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. up to 1,092,511 shares in the open market." Net interest income was $28.0 million for the fiscal year ended September 30, 1999 compared to $23.8 million for the fiscal year ended September 30, 1998, an increase of $4.2 million, or 17.5%. The increase is primarily related to increased interest earning assets Earning Assets Any income-earning asset owned by a company. Notes: These assets are generally interest-bearing accounts, bonds, and securities available for sale. See also: Asset, Asset Valuation, Earnings, Net Interest Margin funded by the net proceeds from the conversion. Net interest income, when adjusted for the tax effect of qualified tax-exempt tax-ex·empt adj. 1. Not subject to taxation, as the capital or income of a philanthropic organization. 2. Producing interest that is exempt from income tax: tax-exempt bonds. n. municipal securities, was $29.3 million for the fiscal year ended September 30, 1999 as compared to $24.9 million for the same period last year, an increase of $4.4 million. The Company's provision for loan losses was $3.3 million for the fiscal year ended September 30, 1999 as compared to $4.1 million for the fiscal year ended September 30, 1998, a decrease of $800,000, or 19.8%. The provision was reduced as a result of a decrease in net loan charge offs and non-performing loans A non-performing loan is a loan that is in default or close to being in default. Many loans become non-performing after being in default for 3 months, but this can depend on the contract terms. . The allowance for loan losses was $10.8 million, or 1.90% of period end loans at September 30, 1999, as compared to $8.3 million, or 1.77% of period end loans at September 30, 1998. The allowance for loan losses as a percentage of non-performing loans was 136.55% at September 30, 1999 as compared to 70.91% at September 30, 1998. Net charge-offs were $746,000 for the fiscal year ended September 30, 1999 as compared to $2.2 million for the same period in 1998. Non-interest income was $3.0 million for fiscal 1999, an increase of $495,000, or 19.4% over the fiscal year ended September 30, 1998. The increase was primarily due to increases in net gains on sales of mortgage loans, trust commissions, loan servicing Loan servicing is the process by which a mortgage bank or subservicing firm collects the timely payment of interest and principal from borrowers. The level of service varies depending on the type loan and the terms negotiated between the firm and the investor seeking their services. fees, and service charges on deposit accounts. Non-interest expenses were $25.8 million for the fiscal year ended September 30, 1999 as compared to $25.1 million in 1998, an increase of $734,000, or 2.9%. The increase was primarily the result of higher personnel costs related to the additional costs in 1999 for the ESOP, expenses for Y2K See Y2K problem and Y2K compliant. Y2K - Year 2000 remediation, as well as an increase in professional and legal fees. The Company's total assets were $915.1 million and $716.6 million at September 30, 1999 and September 30, 1998, respectively. The $198.5 million increase was principally due to net proceeds from the Company's initial public offering of $113.7 million, as well as a $100.3 million increase in borrowings from the FHLB FHLB Federal Home Loan Bank , partially offset by a $14.8 million decrease in deposits, primarily attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to authorized au·thor·ize tr.v. au·thor·ized, au·thor·iz·ing, au·thor·iz·es 1. To grant authority or power to. 2. To give permission for; sanction: withdrawals from deposit accounts to pay for subscription orders. The funds were primarily invested in loans and securities available for sale, principally commercial real estate, commercial business loans, and U.S. Government agency discount bonds. Total loans, excluding loans held for sale, increased by $101.3 million, or 21.8%, from $465.6 million at September 30, 1998 to $566.9 million at September 30, 1999. Total loans increased by $38.1 million in the three months ended September 30, 1999 and substantially all loan categories were represented in the increase. The Bank has been and continues to be a community based, full service financial institution offering a wide variety of business and consumer retail banking products and services. The Bank and its subsidiaries also offer a full range of trust, insurance, and investment services. The Bank's primary sources of funds are deposits and borrowings which it uses to originate real estate mortgages, both residential and commercial, commercial business loans, and consumer loans throughout its primary market area which consists of the six New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of counties of Albany Albany, town, Australia Albany (ăl`bənē), town (1996 pop. 14,590), Western Australia, SW Australia. It is a port on Princess Royal Harbour of King George Sound. The town has woolen mills and fish canneries. , Saratoga Saratoga, residential city (1990 pop. 28,061), Santa Clara co., W Calif., in a vineyard and orchard area, in the foothills of the Santa Cruz Mts.; inc. 1956. Wine is produced in the city; local attractions include tours of the champagne cellars. , Schenectady Schenectady (skənĕk`tədē), city (1990 pop. 65,566), seat of Schenectady co., E central N.Y., on the Mohawk River and Erie Canal; founded 1661 by Arent Van Curler, inc. 1798. , Warren Warren. 1 City (1990 pop. 144,864), Macomb co., SE Mich., a suburb of Detroit; est. 1837, inc. as a city 1957. It is an important metalworking center where steel is processed. , Washington Washington, town, England Washington, town (1991 pop. 48,856), Sunderland metropolitan district, NE England. Washington was designated one of the new towns in 1964 to alleviate overpopulation in the Tyneside-Wearside area. , and Rensselaer. Statements contained in this news release, which are not historical facts, contain forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. as that term is defined in the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. These statements are based on the beliefs of management as well as assumptions made using information currently available to management. Since these statements reflect the views of management concerning future events, these statements involve risks, uncertainties and assumptions. Therefore, actual future results may differ significantly from results discussed in the forward-looking statements due to a number of factors, which include, but are not limited to, factors discussed in the documents filed by the Company with the Securities and Exchange Commission from time to time. -0-
TROY FINANCIAL CORPORATION
Consolidated Statements of Condition
( Unaudited )
Sept. 30, Sept. 30,
Assets 1999 1998
---- ----
(In Thousands, Except Share Data)
Cash and due from banks $ 35,885 $ 12,330
Federal funds sold 50 5,585
--------- ---------
Total cash and cash equivalents 35,935 17,915
Loans held for sale 4,064 11,096
Securities available for sale, at fair value 280,871 197,758
Investment securities held to maturity, at
amortized cost 2,534 3,483
Net loans receivable 556,142 457,321
Accrued interest receivable 5,270 4,287
Other real estate owned 1,845 1,872
Premises and equipment, net 15,049 14,096
Other assets 13,386 8,821
--------- ---------
Total assets $ 915,096 $ 716,649
========= =========
Liabilities and Shareholders' Equity
Liabilities:
Due to Depositors:
Savings accounts 191,968 198,509
Money market accounts 20,348 15,708
Demand deposit accounts 123,345 107,311
Time deposit accounts 227,712 256,674
--------- ---------
Total deposits 563,373 578,202
Mortgagors' escrow accounts 1,596 1,900
Securities sold under agreements to
repurchase 3,736 2,524
Federal Home Loan Bank advances 145,197 44,940
Accrued interest payable 487 360
Official bank checks 9,651 8,841
Contributions payable 2,664 3,453
Other liabilities and accrued expenses 7,953 5,400
--------- ---------
Total liabilities 734,657 645,620
--------- ---------
Shareholders' Equity:
Preferred Stock, $.0001 par value; 15,000,000
shares authorized -- --
Common stock, $.0001 par value; 60,000,000
shares authorized, 12,139,021 shares issued
at September 30, 1999 1 --
Additional paid in capital 117,759 --
Unallocated common stock held by ESOP
(971,122 shares ) (9,620) --
Retained earnings, substantially restricted 72,699 70,622
Accumulated other comprehensive (loss) income (400) 407
--------- ---------
Total shareholders' equity 180,439 71,029
--------- ---------
Total liabilities and shareholders' equity $ 915,096 $ 716,649
========= =========
TROY FINANCIAL CORPORATION
Consolidated Statements of Income
(Unaudited )
For the Three Months Ended For the Year Ended
September 30, September 30,
1999 1998 1999 1998
(In Thousands, Except Share and Per Share Data)
Interest & dividend income:
Interest & fees on
loans $ 10,569 $ 9,476 $ 39,794 $ 38,842
Securities available for
sale:
Taxable 2,286 826 7,108 4,121
Tax exempt 654 822 2,307 2,214
-------- -------- -------- --------
2,940 1,648 9,415 6,335
Investment securities 50 72 222 300
Federal funds sold 435 1,044 2,371 2,553
-------- -------- -------- --------
Total interest and
dividend income 13,994 12,240 51,802 48,030
-------- -------- -------- --------
Interest expense:
Deposits & escrows 4,809 5,781 20,470 23,339
Short-term borrowings 452 13 735 33
Long-term borrowings 633 615 2,577 821
-------- -------- -------- --------
Total interest expense 5,894 6,409 23,782 24,193
-------- -------- -------- --------
Net interest income 8,100 5,831 28,020 23,837
Provision for loan losses 813 1,017 3,250 4,050
-------- -------- -------- --------
Net interest income
after provision for
loan losses 7,287 4,814 24,770 19,787
-------- -------- -------- --------
Non-interest income:
Loan servicing fees 125 127 523 432
Service charges on
deposit accounts 226 236 892 858
Net gains from
securities transactions 3 7 17 8
Net gains (losses) from
mortgage loan sales 12 (49) 245 76
Trust income 184 140 665 459
Other income 248 157 705 719
-------- -------- -------- --------
Total non-interest
income 798 618 3,047 2,552
-------- -------- -------- --------
Non-interest expense:
Compensation & employee
benefits 2,830 2,406 10,839 10,218
Net occupancy 546 527 2,094 2,101
Furniture, fixtures,
& equipment 176 429 728 1,080
Computer charges 416 410 1,508 1,424
Professional, legal,
& other 390 365 1,362 924
Printing, postage,
& telephone 216 150 707 614
Other real estate owned
expense 33 675 781 1,087
Contributions expense 317 4,645 4,706 4,759
Other 742 571 3,100 2,884
-------- -------- -------- --------
Total non-interest
expense 5,666 10,178 25,825 25,091
-------- -------- -------- --------
Income (loss) before income
tax expense ( benefit ) 2,419 (4,746) 1,992 (2,752)
Income tax expense
( benefit ) 656 (2,380) (85) (1,874)
-------- -------- -------- --------
Net income (loss) $ 1,763 ($ 2,366) $ 2,077 ($ 878)
======== ======== ======== ========
Earnings per share:
Basic $ 0.16 -- $ 0.32 --
Diluted $ 0.16 -- $ 0.32 --
Year-to-date earnings per share calculations do not include earnings
prior to the initial public offering on March 31, 1999.
THE TROY FINANCIAL CORPORATION
SELECTED FINANCIAL RATIOS
At At At At At
Sept. 30, June 30, March 31, Dec. 31, Sept. 30,
1999 1999 1999 1998 1998
Unaudited Unaudited Unaudited Unaudited
( In thousands )
Selected Financial
Condition Data
Total assets 915,096 849,346 901,302 738,543 716,649
Loans receivable,
net 556,142 518,536 487,642 479,221 457,321
Securities
available for
sale
( fair value ) 280,871 262,471 275,931 198,156 197,758
Investment
securities held
to maturity
( amortized
cost ) 2,534 2,619 2,755 2,856 3,483
Deposits 563,373 569,763 566,715 588,493 578,202
Borrowings 148,933 77,677 52,327 58,384 47,464
Total equity 180,439 178,967 186,950 71,717 71,029
Asset Quality Ratios:
Nonperforming
loans to
total loans 1.39% 1.60% 1.73% 2.07% 2.50%
Nonperforming
assets to
total assets 1.06% 1.16% 1.14% 1.62% 1.89%
Allowance for
loan losses to
total loans 1.90% 1.94% 1.95% 1.84% 1.77%
Allowance for loan
losses to
non-performing
loans 136.55% 121.32% 112.50% 88.87% 70.91%
Regulatory Capital Ratios:
Leverage capital 21.21% 21.67% 24.58% 9.86% 9.89%
Tier I risk-based
capital 28.71% 30.44% 30.38% 13.51% 14.02%
Risk-based
capital 29.96% 31.69% 31.63% 14.76% 15.27%
Full-service
banking offices 14 14 14 14 14
For the Three Months For the Year Ended
Ended September 30, September 30,
1999 1998 1999 1998
Unaudited Unaudited Unaudited Unaudited
( In thousands ) ( In thousands )
Selected Operating Data
Interest and
dividend income $13,994 $12,240 $51,802 $48,030
Interest expense 5,894 6,409 23,782 24,193
Net interest income 8,100 5,831 28,020 23,837
Provision for loan losses 813 1,017 3,250 4,050
Net interest income
after provision for
loan losses 7,287 4,814 24,770 19,787
Total non-interest income 798 618 3,047 2,552
Total non-interest expense 5,666 10,178 25,825 25,091
Income (loss) before
income tax
expense (benefit) 2,419 (4,746) 1,992 (2,752)
Income tax
expense (benefit) 656 (2,380) (85) (1,874)
Net income (loss) $1,763 ($2,366) $2,077 ($878)
Per Share Data:
Earnings:
Basic $0.16 - $0.32(1) -
Diluted $0.16 - $0.32(1) -
Book value $14.86 - $14.86 -
Book value excluding
unallocated ESOP shares $16.16 - $16.16 -
Market price at
period end $10.813 - $10.813 -
(1) Year-to-date earnings per share calculations do not include
earnings prior to the initial public offering on March 31, 1999.
At or For the At or For the
Three Months Year
Ended September 30, Ended September 30,
1999 1998 1999 1998
Selected Financial Ratios
and Other Data
Performance Ratios:
Return on average
assets 0.83% 0.17%(2) 0.57%(1) 0.27%(2)
Return on
average equity 3.93% 1.68%(2) 3.43%(1) 2.49%(2)
Average equity to
average total
assets 21.09% 10.40% 16.60% 10.80%
Equity to
total assets 19.72% 9.91% 19.72% 9.91%
Average interest
earning assets
to average
interest bearing
liabilities 132.33% 114.20% 122.89% 113.96%
Net interest
rate spread 3.23% 3.13% 3.17% 3.32%
Net interest
rate margin 4.17% 3.67% 3.89% 3.84%
Efficiency ratio 60.81% 73.74%(2) 64.92%(1) 71.22%(2)
Operating expenses
to average
assets ratio 2.65% 2.85%(2) 2.64%(1) 2.88%(2)
(1) Excludes effect of the $4.1 million stock contribution to The
Troy Savings Bank Community Foundation in the quarter ended March
31, 1999.
(2) Excludes effect of the $4.5 million contribution to The Troy
Savings Bank Charitable Foundation.
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