<PAGE>


                                    FORM 10-Q

                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549

           [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                         SECURITIES EXCHANGE ACT OF 1934

                For the quarterly period ended September 30, 2000

                                       OR

          [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                         SECURITIES EXCHANGE ACT OF 1934

            For the transition period from              to
                                           ------------    ----------

                         Commission file number 0-19657
                                                -------


                                 TRM CORPORATION
             ------------------------------------------------------
             (Exact name of registrant as specified in its charter)


               Oregon                                93-0809419
     -------------------------------             -------------------
     (State or other jurisdiction of             (I.R.S. Employer
     incorporation or organization)              Identification No.)


                             5208 N.E. 122nd Avenue
                             Portland, Oregon 97230
               ---------------------------------------------------
               (Address of principal executive offices) (Zip Code)


                                 (503) 257-8766
               ---------------------------------------------------
              (Registrant's telephone number, including area code)


               ---------------------------------------------------
              (Former name, former address and former fiscal year,
                          if changed since last report)

     Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.

YES  X    NO
    ---      ---

     Indicate the number of shares outstanding of each of the issuer's classes
of common stock, as of the latest practicable date:

              CLASS                       OUTSTANDING AT SEPTEMBER 30, 2000
              -----                       ---------------------------------
          Common Stock                                  7,063,190


<PAGE>

PART I - FINANCIAL INFORMATION

ITEM 1.       FINANCIAL STATEMENTS

                                 TRM CORPORATION

                           CONSOLIDATED BALANCE SHEETS
                                 (In thousands)

<TABLE>
<CAPTION>
                                                                                   December 31,     September 30,
                                                                                       1999             2000
                                                                                ----------------    -------------
                                                                                                     (unaudited)
<S>                                                                             <C>                 <C>
                  ASSETS

Current assets:
        Cash and cash equivalents                                                      $  16,775    $       8,270
        Accounts receivable, net                                                           7,362            9,575
        Income tax receivable                                                                378
        Inventories                                                                        3,771            4,660
        Prepaid expenses and other                                                         2,188            2,341
        Deferred tax asset                                                                 1,243            1,243
                                                                                ----------------    -------------
                   Total current assets                                                   31,717           26,089
Equipment and vehicles, less accumulated depreciation                                     62,648           75,514
Deferred tax asset                                                                                          2,921
Other assets                                                                               1,541            5,206
                                                                                ----------------    -------------

                                                                                $         95,906    $     109,730
                                                                                ================    =============

          LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:
        Accounts payable                                                                   2,880            8,662
        Accrued expenses                                                                   3,539            6,562
                                                                                ----------------    -------------
                  Total current liabilities                                                6,419           15,224
Long Term Debt                                                                            23,192           29,720
Deferred income taxes                                                                      5,016            4,929
                                                                                ----------------    -------------
                  Total liabilities                                                       34,627           49,873
                                                                                ----------------    -------------
Minority Interest                                                                             --            5,174
Shareholders' equity:
        Preferred stock, no par value.  Authorized
                  5,000 shares; 1,778 shares issued
                  and outstanding                                                         19,798           19,798
        Common stock, no par value.  Authorized
                  50,000 shares; issued and
                  outstanding 7,071 and 7,063 shares, respectively                        19,095           19,032
Accumulated other comprehensive income                                                      (427)          (2,318)
Retained earnings                                                                         22,813           18,171
                                                                                ----------------    -------------
                  Total shareholders' equity                                              61,279           54,683
                                                                                ----------------    -------------

                                                                                $         95,906          109,730
                                                                                ================    =============
</TABLE>

See accompanying notes to consolidated financial statements.

                                        2


<PAGE>

                                 TRM CORPORATION

                      CONSOLIDATED STATEMENTS OF OPERATIONS
                                   (unaudited)
                      (In thousands, except per share data)

<TABLE>
<CAPTION>

                                                                    Three Months Ended                   Nine Months Ended
                                                                       September 30,                       September 30,
                                                              -------------------------------    --------------------------------
                                                                   1999              2000             1999               2000
                                                              --------------     ------------    -------------     --------------
<S>                                                           <C>                 <C>             <C>               <C>

Sales                                                         $       16,257     $     19,159    $      50,474     $       56,577
Less discounts                                                         2,787            2,846            8,974              9,228
                                                              --------------     ------------    -------------     --------------
                Net sales                                             13,470           16,313           41,500             47,349
Cost of sales                                                          7,555           11,493           21,952             30,510
                                                              --------------     ------------    -------------     --------------
                Gross profit                                           5,915            4,820           19,548             16,839
Selling, general and administrative expense                            5,544            7,091           16,570             21,353
                                                              --------------     ------------    -------------     --------------
                Operating income (loss)                                  371           (2,271)           2,978             (4,514)
Other (income) expense:
        Interest                                                         143              539              237              1,557
        Other, net                                                      (110)            (287)            (334)              (200)
                                                              --------------     ------------    -------------     --------------
Income (loss) before minority interest in earnings
     of a consolidated subsidiary                                        338           (2,523)           3,075             (5,871)
Minority interest                                                                          47                                  76
                Income (loss) before income taxes                        338           (2,476)           3,075             (5,795)
Provision (benefit) for income taxes                                     132           (1,012)           1,201             (2,276)
                                                              --------------     ------------    -------------     --------------
                Net income (loss)                             $          206     $     (1,464)   $       1,874     $       (3,519)
                                                              ==============     ============    =============     ==============

Earnings per share computation:
Net income (loss)                                             $          206     $     (1,464)   $       1,874     $       (3,519)
Preferred stock dividends                                               (374)            (377)          (1,122)            (1,123)
                                                              ---------------    ------------    -------------     --------------
Net income (loss) available to common
   Shareholders                                               $         (168)    $     (1,841)   $         752     $       (4,642)
                                                              ==============     ============    =============     ==============
Basic net income (loss) per share:
        Shares outstanding                                             7,110            7,063            7,103              7,069
                                                              ---------------    ------------    -------------     --------------
        Net income (loss) per share                           $         (.02)    $       (.26)   $         .11     $         (.66)
                                                              ==============     ============    =============     ==============
Diluted net income (loss) per  share:
        Shares outstanding                                             7,110            7,063            7,289              7,069
                                                              --------------     ------------    -------------     --------------
        Net income (loss) per share                           $         (.02)    $       (.26)   $         .10     $        (.66)
                                                              ==============     ============    =============     ==============
</TABLE>


See accompanying notes to consolidated financial statements.

                                        3


<PAGE>

                                 TRM CORPORATION

                 CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY
                                   (unaudited)
                                 (In thousands)



<TABLE>
<CAPTION>

                                                                                    Accumulated
                                                                                       Other
                             Comprehensive   Preferred Stock      Common Stock       Comprehen-    Retained
                                Income     Shares   Amounts    Shares    Amounts    sive Income    Earnings    Total
                             ------------- ------- ----------- -------- ---------- --------------- ---------- ---------
<S>                          <C>           <C>     <C>         <C>      <C>         <C>            <C>        <C>


Balances, December 31, 1999                 1,778   $ 19,798     7,071   $ 19,095      $ (427)      $ 22,813   $61,279
Comprehensive income
  Net loss                   $  (3,519)                                                               (3,519)   (3,519)
  Other comprehensive
  income (loss), net of tax
    Foreign currency
    translation adjustment      (1,891)                                                (1,891)                  (1,891)
                             ----------
Comprehensive income         $  (5,410)
                             ==========
Issuance of stock to
employees                                                            8         35                                   35
Repurchase of common stock                                         (16)       (98)                                 (98)
                                                                                                     (1,123)    (1,123)
                                           ------- ----------- -------- ---------- --------------- ---------- ---------
Balances, September 30, 2000                1,778   $ 19,798     7,063   $ 19,032    $ (2,318)      $ 18,171   $54,683
                                           ======= =========== ======== ========== =============== ========== =========


</TABLE>


See accompanying notes to consolidated financial statements.

                                        4

<PAGE>

                                 TRM CORPORATION

                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (unaudited)
                                 (In thousands)


<TABLE>
<CAPTION>


                                                                                             Nine Months Ended
                                                                                               September 30,
                                                                                --------------------------------------------
                                                                                       1999                     2000
                                                                                -------------------      -------------------
<S>                                                                             <C>                      <C>
Cash flows from operating activities:
        Net income (loss)                                                             $  1,874           $        (3,519)
         Adjustments to reconcile net income (loss) to net
           cash provided by operating activities:
               Depreciation and amortization                                             6,510                     8,383
                 Other                                                                      --                      (107)

               (Gain) loss on disposal of equipment
                        and vehicles                                                       (34)                      110
               Changes in items affecting operations:
                        Accounts receivable                                                926                    (2,249)
                        Inventories                                                       (214)                     (930)
                        Income tax receivable                                             (450)                      365
                        Prepaid expenses and other                                        (129)                     (489)
                        Accounts payable                                                (5,021)                    6,035
                        Accrued expenses                                                 1,671                     3,152
                        Deferred income tax                                                (10)                   (2,920)
                                                                                -------------------      -------------------
                        Cash provided by operating activities                            5,123                     7,831
                                                                                -------------------      -------------------
Cash flows from investing activities:
        Proceeds from sale of equipment                                                    499                     2,108
        Capital expenditures                                                           (16,485)                  (24,344)
        Other                                                                           (1,058)                   (1,337)
           Proceeds from sale of subsidiary shares                                                                 5,000
           Acquisition of a business, net of cash acquired                                                          (799)
                                                                                -------------------      -------------------
                        Cash used in investing activities                              (17,044)                  (19,372)
                                                                                -------------------      -------------------
Cash flows from financing activities:
        Net borrowings on notes payable                                                  6,900                     4,904
        Net proceeds from issuance of common stock                                         149                        35
        Repurchase of common stock                                                         (36)                      (98)
        Dividends on preferred stock                                                    (1,122)                   (1,123)
                                                                                -------------------      -------------------
                        Cash provided by financing activities                            5,891                     3,718
                                                                                -------------------      -------------------
Effect of exchange rate changes                                                           (189)                     (682)
                                                                                -------------------      -------------------
Net decrease in cash and cash equivalents                                               (6,219)                   (8,505)
Cash and cash equivalents at beginning of period                                        14,285                    16,775
                                                                                -------------------      -------------------
Cash and cash equivalents at end of period                                      $        8,066           $         8,270
                                                                                ===================      ===================


</TABLE>


See accompanying notes to consolidated financial statements.

                                       5


<PAGE>

                                 TRM CORPORATION

        Notes to Condensed Consolidated Financial Statements (unaudited)
        ----------------------------------------------------------------

1.   Interim Financial Data:

     The condensed financial statements included herein have been prepared by
     the Company, without audit, pursuant to the rules and regulations of the
     Securities and Exchange Commission and reflect all adjustments, consisting
     only of normal recurring adjustments, which, in the opinion of management,
     are necessary for a fair statement of the results of the interim periods.
     These condensed interim financial data should be read in conjunction with
     the Company's latest annual report to shareholders.

2.   Net Income Per Share:

     Basic and diluted net income per share are based on the weighted average
     number of common shares outstanding during each year, with diluted
     including the effect of potentially dilutive securities. For the three
     months and nine months ended September 30, 1999 and September 30, 2000, the
     weighted average number of common shares for basic net income per share
     computations were 7,110,000 and 7,103,000, and 7,063,000 and 7,069,000,
     respectively. For diluted net income per share, 186,000 shares were added
     to weighted average shares outstanding for the nine month period ended
     September 30, 1999, representing potential dilution for stock options
     outstanding, calculated using the treasury stock method. In calculating
     basic net income per share, dividends for preferred stock are deducted to
     arrive at income available for common stockholders. For diluted net income
     per share, the calculation assumes the conversion of common stock
     equivalents including the conversion of preferred stock to common unless
     such conversion is anti-dilutive. No shares were added to the weighted
     average shares outstanding for the three-month period ended September 30,
     1999 or for the three and nine months ended September 30, 2000, because the
     addition of shares would be anti-dilutive.

3.   Inventories (in thousands):

<TABLE>
<CAPTION>

                                                 December 31,    September,
                                                      1999         2000
                                                 ------------   ------------
<S>                                              <C>            <C>
       Paper                                     $        696   $        803
       Toner and developer                                550            475
       Parts                                            2,525          3,382
                                                 ------------   ------------

                                                 $      3,771   $      4,660
                                                 ============   ============

</TABLE>


4.   Segment Reporting (in thousands):

     The Company has three reportable segments: CopyCenters, ATM and e-Commerce.
     CopyCenters owns and maintains self-service photocopiers in retail
     establishments. ATM owns and operates ATM machines in retail
     establishments. The e-commerce business develops software

                                       6


<PAGE>

     to deliver products and services to ATMs. Prior to 1999, the Company had
     only one business segment.

     The Company evaluates each segment's performance based on income or loss
     before interest, income taxes, and minority interest excluding
     non-recurring charges. Information regarding the operations in these
     reportable segments is as follows:

<TABLE>
<CAPTION>

                                                (Dollar Amounts in Thousands)
                                     Three months ended               Nine months ended
                                September 30,   September 30,   September 30,   September 30,
                                     1999            2000            1999           2000
                                ------------    ------------    ------------    ------------
<S>                             <C>             <C>             <C>             <C>

Sales:
CopyCenters                     $     15,756    $     15,343    $     49,783    $     49,351
ATM                                      501           3,314             691           6,664
e-Commerce                                               502                             562
                                ------------    ------------    ------------    ------------
                                $     16,257    $     19,159    $     50,474    $     56,577
                                ============    ============    ============    ============
Depreciation and
amortization:
CopyCenters                     $      2,324    $      2,499    $      6,427    $      7,410
ATM                                       50             441              83             861
e-Commerce                                                80                             112
                                ------------    ------------    ------------    ------------
                                $      2,374    $      3,020    $      6,510    $      8,383
                                ============    ============    ============    ============

Income (loss) before
interest and taxes &
minority interest:
CopyCenters                     $        925    $      1,475    $      3,980    $      2,551
ATM                                     (444)         (3,085)           (668)         (5,928)
e-Commerce                                              (374)                           (937)
                                ------------    ------------    ------------    ------------
                                $        481    $     (1,984)   $      3,312    $     (4,314)
                                ============    ============    ============    ============

Capital expenditures:
CopyCenters                     $      3,944    $      4,391    $     12,932    $      8,319
ATM                                    2,009           3,487           3,553          15,989
e-Commerce                                                36                              36
                                ------------    ------------    ------------    ------------
                                $      5,953    $      7,914    $     16,485    $     24,344
                                ============    ============    ============    ============




                                                                    As of           As of
                                                                    Dec 31,     September 30,
                                                                     1999           2000
                                                                ------------    ------------
Assets:
CopyCenters                                                     $     71,984    $     75,877
ATM                                                                   23,922          22,262
e-Commerce                                                                            11,591
                                                                ------------    -------------
                                                                $     95,906    $    109,730
                                                                ============    ============
</TABLE>

                                        7


<PAGE>


ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
        CONDITION AND RESULTS OF OPERATIONS

GENERAL
     During the quarter ending September 30, 2000, the Company continued the
expansion of its new ATM services business while its CopyCenters services
business generated solid cash flow. The Company's e-commerce business, conducted
by its subsidiary iATMglobal.net, continued to build a Web-based distribution
channel to deliver e-commerce goods and services to customers through ATMs.

     Also in the third quarter of 2000, NCR Corporation (NYSE:NCR), the largest
global supplier of Automated Teller Machines (ATMs), made a strategic equity
investment in iATMglobal.net. NCR invested $5 million in exchange for 20%
ownership interest in iATMglobal.net and has agreed to enable iATMglobal.net's
e-commerce software on NCR ATMs.

     As of September 30, 2000, the Company had a total of 1,947 ATM operating
units installed, with 1,031 and 916 deployed in the United States and United
Kingdom respectively, as compared to 292 in the United States at September 30,
1999, an overall increase of 1,655 units. The ATM business contributed $3.3
million to quarterly gross revenues and $6.7 million year to date compared to
$501,000 for the quarter and $691,000 year to date ended September 30, 1999. The
Company believes that revenues generated from goods and services delivered
through its ATM network will become an increasingly higher percentage of its
overall revenue in the future as it expands the product offerings through its
ATM network, and pursues new geographic opportunities.

     As a result of the Company's development of its ATM services business and
start up of its e-commerce subsidiary, the Company expects to record a loss for
the fourth quarter of 2000.

     In the CopyCenters business, as of September 30, 2000, the Company had
35,759 TRM Copy Centers in operation compared to 32,638 at September 30, 1999,
an increase of 3,121 centers (9.56%). In the third quarter of 2000, the
CopyCenters business generated earnings of $1.5 million before interest, taxes,
depreciation, amortization and minority interest, compared to $925,000 in the
same quarter of 1999.

     In the third quarter of 2000 the Company's e-commerce business, generated
$502,000 in gross revenues from contracted software engineering services, with
no revenue generated in 1999.

     In the first quarter of 2000 the Company replaced its existing line of
credit. The Company signed a new Loan Agreement with Bank of America N.A. to
provide a line of credit commitment equal to $30 million through June 30, 2001,
reducing to $25 million through June 30, 2002. The Company is not presently in
compliance with all the financial ratios under this facility. Bank of America
has advised the Company that it will forebear until January 20, 2001. Also in
the first quarter of 2000, the Company (through a special purpose finance
entity) established a $30 million Loan Facility to provide vault cash for its
ATM network. The financing was completed off the Company's balance sheet on a
non-recourse basis. The company presently has $24.9 million funded under the
facility to supply its ATMs with cash. See "Liquidity and Capital Resources."

                                       8


<PAGE>

RESULTS OF OPERATIONS
     The following table sets forth, for the periods indicated, selected
statement of operations data, expressed as a percentage of sales, and the
percentage change in dollar amounts of each item on the Consolidated Statements
of Operations (see page 3 of this Form 10-Q).

<TABLE>
<CAPTION>


                                     Three Months Ended                                   Nine Months Ended
                                         September 30,     Percentage Change               September 30,       Percentage Change
                                     1999         2000     Increase (Decrease)            1999       2000      Increase (Decrease)
                                     ----         ----     -------------------            ----       ----      -------------------
<S>                                <C>            <C>      <C>                            <C>        <C>       <C>
Sales                              100.0%         100.0%           17.9%                  100.0%     100.0%          12.1%
Sales discounts                     17.1           14.9             2.1                    17.8       16.3            2.8
Cost of sales                       46.5           60.0            52.1                    43.5       53.9           39.0
Selling, general and
   Administrative                   34.1           37.0            27.9                    32.8       37.7           28.9
Special charges                       --             --              --                                 --             --
Operating income (loss)              2.3          (11.9)         (712.1)                    5.9       (7.9)        (251.6)
Interest expense, net                 .9            2.8           276.9                      .5        2.8          557.0
Other (income) expense
   Net                               (.7)          (1.6)          160.9                     (.7)       (.4)         (40.1)
Income (loss) before
   Minority interest                 2.1          (13.1)         (846.4)                    6.1      (10.3)        (290.9)
Minority interest                                    .2           N/A                                   .1          N/A
Income (loss) before
   Income taxes                      2.1          (12.9)         (832.5)                    6.1      (10.2)        (288.5)
Provision (benefit)
   for income taxes                   .8           (5.3)         (866.7)                    2.4       (4.0)        (289.5)
                                   -----          -----          ------                   -----      -----         ------
Net income (loss)                    1.3%          (7.6)%        (810.7)%                   3.7%      (6.2)%       (287.8)%
                                   =====          =====          ======                   =====      =====         ======

</TABLE>


THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2000 COMPARED TO THREE AND
NINE MONTHS ENDED SEPTEMBER 30, 1999
     For the three and nine month period ended September 30, 2000, consolidated
sales increased by $2.9 million (17.9%) and $6.1 million (12.1%), respectively.
ATM revenue increased $2.8 million in the third quarter of 2000 and $6.0 million
year to date, while the CopyCenters business revenues decreased by $413,000 in
the third quarter of 2000 and $567,000 year to date as compared to the same
periods in 1999. The e-commerce segment of the Company's business generated
$502,000 for the quarter and year to date ended September 30, 2000.

     CopyCenters sales were $15.3 million and $49.3 million for the quarter and
year to date ended September 30, 2000, respectively compared to $15.8 million
and $49.8 million during the same periods in 1999. Billed units increased 11.9%
and 12.4%, respectively while revenue per billed unit decreased 13.4% for the
third quarter of 2000 and 12.2% year to date, resulting in a slight decrease in
revenue on the higher installed base.

     Revenues from the Company's new ATM business were $3.3 million and $6.7
million for the quarter and year to date ended September 30, 2000, respectively,
as compared to $501,000 for the quarter and $691,000 for the year to date ended
September 30, 1999. The Company is expecting a continued increase in ATM revenue
in 2000 and into 2001 because of the aggressive growth plans it has for the ATM
services business.

     In the third quarter of 2000 the Company's e-commerce business, generated
$502,000 in gross revenues from contracted software engineering services with no
revenue generated last year.

                                       9



<PAGE>

     Sales discounts are the portion of revenue retained by retail customers.
Sales discounts generally vary at individual retail businesses depending on
volume - the higher the volume, the greater the discount. The increase in sales
discounts for the quarter and the year ended September 30, 2000 compared to the
prior year is $59,000 (2.1%) and $254,000 (2.8%), respectively, which is
primarily attributed to the Company's ATM business. CopyCenters maintained the
same level of discounts as a percentage of sales for the quarter and year to
date ended September 30, 2000.

     Costs of sales on a consolidated basis increased $3.9 million (52.1%) for
the quarter and $8.6 million (39.0%) for the year to date ended September 30,
2000 compared to the same periods in 1999. ATM related costs contributed to the
increase of $3.1 million for the quarter and $5.9 million year to date.
E-commerce related increases were $191,000 for the quarter and $236,000 year to
date. CopyCenters' field labor and other costs increased by $358,000 for the
quarter and $938,000 year to date, due mostly to the increase in the installed
base and a new signage and merchandising program. CopyCenters' Service partner
related costs increased $103,000 for the quarter and $537,000 year to date. This
cost is attributed to the increase in installed units located outside a TRM
service area and are serviced by a third party. Service partner units installed
were 1,683 and 1,278 as of September 30, 2000 and September 30, 1999,
respectively. The remaining increase in cost of sales of $137,000 for the
quarter and $937,000 year to date is due to copier machine depreciation, which
relates to the additional NextGen(TM) photocopiers in the Company's installed
base.

     Selling, general and administrative expenses increased $1.5 million (27.9%)
and $4.8 million (28.9%) during the quarter and year ended September 30, 2000,
respectively, compared to the same periods in 1999. E-commerce costs contributed
$813,000 for the quarter and $1.4 million year to date ended September 30, 2000.
ATM direct costs increased $437,000 for the quarter and $1.2 million year to
date. ATM indirect costs contributed $708,000 for the quarter and $2.2 million
year to date to the increase. Copycenters' costs decreased $473,000 for the
quarter and $203,000 year to date ended September 30, 2000.

     Interest expense increased to $539,000 from $143,000 for the quarter ended
September 30, 2000, and increased to $1.6 million from $237,000 year to date
ended September 30, 2000 from the same periods in 1999, respectively. The
increase was due to an increase in borrowings on the Company's revolving line of
credit during 2000 primarily to finance the purchase of ATM machines operated by
the Company in its ATM business and the formation of the e-commerce subsidiary.
Borrowings to finance the cash needs of the ATM network are not expected to be
necessary for the remainder of the year as a result of the establishment of a
commercial paper facility. See the section on "Liquidity and Capital Resources"
in this Form 10-Q.

     Other income increased $177,000 during the quarter ended September 30, 2000
compared to the same periods in 1999, primarily due to iATMglobal.net's interest
earned on short-term investments. Other income decreased $134,000 year to date,
compared to the same period in 1999. The decrease was primarily due to interest
income generated from Copycenter and ATM short-term investments in the first six
months of 1999. These short-term investments were not outstanding in 2000.

     The Company's effective tax rate for the quarter ended September 30, 2000
is 40.9 percent, resulting in an income tax benefit of $1.0 million compared to
an effective rate of 39.1 percent and an income tax provision of $132,000 in
1999. The Company's year to date effective tax rate is 39.3 percent for the nine
months ended September 30, 2000 resulting in an income tax benefit of $2.3

                                       10



<PAGE>

million compared to 39.1 percent effective tax rate and an income tax provision
of $1.2 million for September 30, 1999.

LIQUIDITY AND CAPITAL RESOURCES
     During the nine months ended September 30, 2000, TRM generated $7.8 million
in cashflows from operations and decreased its net working capital from $25.3
million at December 31, 1999 to $10.9 million at September 30, 2000 (including
cash and cash equivalents of $8.3 million). The Company also has a $30.0 million
bank line of credit, with $27.8 million in borrowings outstanding at September
30, 2000.

     During the nine months ended September 30, 2000, the Company funded capital
expenditures of $24.3 million primarily from bank borrowings on its line of
credit. Capital expenditures were primarily for NCR ATM machines, merchandising
signage and computer systems implementation costs.

     The Company obtained a new source for vault cash inventory in its ATM
network during the first quarter of 2000. As of December 31, 1999, the Company
had a cash balance related to the ATM vault cash inventory of $16.1 million,
financed through its line of credit. In March of 2000, the Company established a
$30.0 million financing facility to access a commercial paper conduit to provide
vault cash for its ATM network. This agreement resulted in the removal of the
cash and underlying bank borrowings from the Company's balance sheet. The
financing was completed off the Company's balance sheet on a non-recourse basis.
As such, the ATM vault cash inventory and related debt financing was removed
from the balance sheet as of March 31, 2000. The Company has the ability to
increase this facility to $75 million to support expansion of its ATM network.

     The Company has made capital expenditures of $24.3 million to date, and
expects total capital expenditures for calendar 2000 to be approximately $30
million. Approximately $25 million of the total capital expenditures will be
used to acquire ATM machines and photocopiers and the remainder will be used to
acquire computer-related systems and other capital items. The Company expects to
finance these capital expenditures with cash generated from operations, bank
borrowings and asset leasing. The Company has a bank line of credit arrangement,
which allows it flexibility in its use of proceeds. The line of credit also will
not encumber the Company's ATM assets, allowing it to refinance its existing ATM
assets and finance future ATM asset purchases, subject to limits based on the
Company's ratio of funded debt to EBIDTA. The Company expects that these sources
will provide adequate cash to fund its expansion through at least December 31,
2000.

DISCLOSURE REGARDING EURO CONVERSION
     On January 1, 1999, eleven member countries of the European Community began
a process to convert their existing sovereign currencies to a single common
denomination, the Euro. The process of conversion is gradual over the next three
years, culminating in the eventual removal from circulation of all existing
domestic currency for the participating countries. The Company presently
operates in the United Kingdom and France and transacts business in the local
currency of those countries. France will be subject to the Euro Conversion, and
the United Kingdom may become subject to the conversion. The Company believes
that it will be able to accommodate the conversion to the Euro without a
material impact on its financial statements.

FORWARD-LOOKING STATEMENTS
     Information in "Management's Discussion and Analysis," in this Form 10-Q
about the Company's goals, plans and expectations regarding expansion, capital
expenditures, effectively using

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<PAGE>

a third-party network of service providers, expanding the ATM business, offering
and providing e-commerce goods and services through ATMs, constitutes
forward-looking statements within the meaning of Section 27A of the Securities
Act of 1933 and Section 21E of the Securities Exchange Act of 1934. The
following factors could cause the actual results to differ materially from the
forward-looking statements: business conditions in the market areas in which the
Company operates, competitive factors, customer demand for the Company's
services, the Company's ability to execute its plans successfully and the
volatility of paper costs. Any forward-looking statements should be considered
in light of these factors as well as risk factors and business conditions
discussed in the Company's SEC Form 10-K for the year ended December 31, 1999.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

     The Company is exposed to minimal market risks. Sensitivity of results of
operations to these risks is managed by maintaining a conservative investment
portfolio, which is comprised solely of money market funds, and entering into
long-term debt obligations with appropriate price and term characteristics. The
Company does not hold or issue derivative commodity instruments or other
financial instruments for trading purposes. Financial instruments held for other
than trading purposes do not impose a material market risk.

     The Company is exposed to interest rate risk, as additional financing will
be needed due to the capital expenditures associated with expanding the
Company's business operations. The interest rate that the Company will be able
to obtain on debt financing will depend on market conditions at that time, and
may differ from the rates the Company has secured on its current debt.
Additionally, the Company is exposed to interest rate risk related to its credit
facility as of September 30, 2000. Advances against the credit facility
periodically renew, at which point the borrowings are subject to the then
current market interest rates, which may differ from the rates the Company is
currently paying on its borrowings.

     The Company is exposed to foreign currency exchange rate risk, as it has
operations in Canada, France and the United Kingdom. The relative amount of
business transacted in these countries is outlined in footnote 11 to the
Consolidated Financial Statements of the Company's 1999 Form 10-K.

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<PAGE>

                           PART II - OTHER INFORMATION

ITEM 4.

ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K.

         (a)  Exhibits

              27.1  Financial Data Schedule

         (b)  Reports on Form 8-K.

              No reports on Form 8-K were filed during the period.


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<PAGE>

                                    SIGNATURE


Pursuant to the requirements of the Securities Exchange Act of 1934, Registrant
has duly caused this report to be signed on its behalf by the undersigned,
thereunto duly authorized.


                                        TRM CORPORATION

Date:  November 14, 2000                By: /s/ Daniel L. Spalding
       ------------------                   ----------------------------
                                            Daniel L. Spalding
                                            Vice President, Finance and
                                            Chief Financial Officer


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