STATE COLLEGE, Pa., Jan. 21 /PRNewswire-FirstCall/ --
Omega Financial Corporation (Nasdaq: OMEF) recorded 2002 net income that
exceeded the previous year's by 3%, according to David B. Lee, chairman and
chief executive officer.
(Photo: http://www.newscom.com/cgi-bin/prnh/19990921/OMFCLOGO )
The net income of $18.179 million was $524,000 greater than the $17.655
million recorded for 2001, Lee said. Basic and diluted per-share earnings for
the year were $2.17 and $2.10 respectively, increases of 4.3% and 4.4%
respectively over the previous year.
"We had a strong, consistent performance for the year, despite the
difficulties of the economy," Lee commented. "We have maintained our
strategies for profitable growth throughout this challenging period and the
results affirm our course."
For the fourth quarter of 2002, net income totaled $4.571 million or $.53
per diluted share versus $4.846 million or $.56 per diluted share for 2001's
fourth quarter. Lee noted that this year's fourth quarter results, while
solid, are lower than last year's final quarter numbers primarily due to gains
realized in the fourth quarter of 2001 from the sale of loans and investment
securities. Gains on sales of loans and securities totaled $8,000 in the
current year's fourth quarter and $485,000 for 2002 versus $860,000 in the
fourth quarter of 2001 and $1.194 million for 2001.
In other results for the full year, 2002, Lee said that the company's, net
interest margin, service charges and income from credit activities all posted
gains over 2001 in spite of economic pressures. The company's solid financial
performance for the full year 2002 reflected improvement in net interest
margin (4.29% in 2002 versus 4.27% in 2001), increases in non-interest income
excluding loans and securities gains ($14.549 million in 2002 versus $12.960
million in 2001), offset by only modest increases in operating expenses of
2.7% for the year. The company also benefited from a reduction in its
effective tax rate of 1.3% due to an increase in non-taxable income in 2002.
The company's common share dividends declared rose by 5.6% for the year to
$1.13, while the ROA was 1.3% higher than 2001, finishing at 1.58%.
"As is the case with all banks, the current rate environment exerts
enormous pressure on our net interest margin," Lee explained. "Our ability to
maintain growth in spite of this fact is a reflection of the efforts of our
staff and management in developing new revenue streams. We are increasing our
market presence as a total financial services provider."
During the year, Lee noted, this strategy to seek new revenue streams
included the third quarter debut of the Omega Insurance Agency. The agency
provides a full complement of auto, home and business insurance, as well as
life and disability coverage and long-term care insurance.
At the close of the year, Omega expanded its ability to offer annuities,
mutual funds, stock and bond brokerage services, long term care insurance, and
sophisticated life products. Through Omega Investment Services and added
professional staff, Omega will further enhance its role as the total financial
solution for customers in the local market.
Omega Financial serves seven Central Pennsylvania counties through Omega
Bank. Quarterly and annual reports, a corporate profile, stock quotes and
other financial data can be accessed through the Omega web site at
http://www.omegafinancial.com. Selected financial highlights are summarized on the
following page.
OMEGA FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except share data)
Unaudited
Three Months Ended Year Ended
December 31, December 31,
2002 2001 2002 2001
Interest Income:
Interest and fees on loans $12,893 $14,621 $52,895 $61,433
Interest and dividends on investment
securities 2,710 3,346 11,683 13,280
Other interest income 68 129 382 1,293
TOTAL INTEREST INCOME 15,671 18,096 64,960 76,006
Interest Expense:
Interest on deposits 3,780 6,253 17,777 28,242
Interest on short-term borrowings 180 273 754 1,605
Interest on long-term debt and
other interest bearing liabilities 191 235 792 1,016
TOTAL INTEREST EXPENSE 4,151 6,761 19,323 30,863
NET INTEREST INCOME 11,520 11,335 45,637 45,143
Provision for loan losses - 399 630 500
INCOME FROM CREDIT ACTIVITIES 11,520 10,936 45,007 44,643
Other Income:
Service fees on deposit accounts 1,524 1,061 5,099 4,138
Trust fees 766 831 3,585 3,358
Gain on sale of loans and other assets 5 708 73 722
Net gains on investment securities 3 152 412 472
Other 1,552 1,563 5,865 5,464
TOTAL OTHER INCOME 3,850 4,315 15,034 14,154
Other Expense:
Salaries and employee benefits 5,013 4,725 19,753 19,425
Net occupancy expense 597 573 2,287 2,302
Equipment expense 695 529 2,577 2,166
Data processing service 494 424 1,740 1,620
Other 2,541 2,517 9,855 9,752
TOTAL OTHER EXPENSE 9,340 8,768 36,212 35,265
Income before taxes 6,030 6,483 23,829 23,532
Income tax expense 1,459 1,637 5,650 5,877
NET INCOME $4,571 $4,846 $18,179 $17,655
Net income per common share:
Basic $0.55 $.58 $2.17 $2.08
Diluted $0.53 $.56 $2.10 $2.01
Weighted average shares and
equivalents:
Basic 8,112 8,213 8,189 8,287
Diluted 8,564 8,671 8,621 8,721
Dividends declared per share:
Common $0.29 $.27 $1.13 $1.07
Preferred $0.45 $.45 $1.80 $1.80
OMEGA FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands)
December 31, December 31,
Assets 2002 2001
Cash and due from banks $36,049 $39,072
Interest bearing deposits with other
financial institutions 8,757 31,812
Federal funds sold 33,900 14,450
Investment securities held to
maturity 4,967 3,851
Investment securities available for
sale 247,286 263,501
Total loans 779,830 760,395
Less: Unearned discount (11) (41)
Allowance for loan losses (11,052) (11,224)
Net loans 768,767 749,130
Premises and equipment, net 14,719 15,563
Other assets 40,112 41,250
TOTAL ASSETS $1,154,557 $1,158,629
Liabilities and Shareholders' Equity
Deposits:
Non-interest bearing $148,498 $138,433
Interest bearing 770,757 793,234
Total deposits 919,255 931,667
Short-term borrowings 41,452 37,572
Other liabilities 11,909 12,093
ESOP debt 2,832 3,110
Long-term debt 16,237 17,234
Other interest bearing liabilities 762 703
TOTAL LIABILITIES 992,447 1,002,379
TOTAL SHAREHOLDERS' EQUITY 162,110 156,250
TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY $1,154,557 $1,158,629
OMEGA FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED FINANCIAL HIGHLIGHTS
(Unaudited)
(In thousands, except as indicated *)
For the Quarter
2002 2001 % Change
Earnings:
Net income $4,571 $4,846 (5.7)%
Per share statistics: *
Diluted earnings $.53 $.56 (5.4)%
Dividends declared - common .29 .27 7.4
Dividends declared - preferred .45 .45 --
Book value - common 20.01 18.65 7.3
Market value - High 37.25 33.34 11.7
Low 33.17 29.65 11.9
Financial position at December 31:
Assets $1,154,557 $1,158,629 (0.4)%
Deposits 919,255 931,667 (1.3)
Net loans 768,767 749,130 2.6
Shareholders' equity 162,110 156,250 3.8
Average Balances:
Assets $1,142,827 $1,146,423 (0.3)%
Deposits 910,452 920,399 (1.1)
Net loans 778,227 755,949 2.9
Shareholders' equity 162,661 156,543 3.9
Profitability ratios - annualized: *
Return on average assets 1.60% 1.69% (5.4)%
Return on average equity 11.24 12.38 (9.2)
Net interest margin - fully tax
equivalent 4.63 4.55 1.8
Shares outstanding at December 31: *
Common 8,099,778 8,222,010 (1.5)%
Preferred 219,781 219,781 --
OMEGA FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED FINANCIAL HIGHLIGHTS
(Unaudited)
(In thousands, except as indicated *)
Year to Date
2002 2001 % Change
Earnings:
Net income $18,179 $17,655 3.0%
Per share statistics: *
Diluted earnings $2.10 $2.01 4.5%
Dividends declared - common 1.13 1.07 5.6
Dividends declared - preferred 1.80 1.80 --
Book value - common 20.01 18.65 7.3
Market value - High 37.25 33.34 11.7
Low 30.20 23.25 29.9
Financial position at December 31:
Assets $1,154,557 $1,158,629 (0.4)%
Deposits 919,255 931,667 (1.3)
Net loans 768,767 749,130 2.6
Shareholders' equity 162,110 156,250 3.8
Average Balances:
Assets $1,149,810 $1,133,495 1.4%
Deposits 921,052 909,684 1.2
Net loans 764,499 757,650 0.9
Shareholders' equity 160,551 153,490 4.6
Profitability ratios - annualized: *
Return on average assets 1.58% 1.56% 1.5%
Return on average equity 11.32 11.50 (1.6)
Net interest margin - fully tax
equivalent 4.58 4.57 0.2
Shares outstanding at December 31: *
Common 8,099,778 8,222,010 (1.5)%
Preferred 219,781 219,781 --
SOURCE Omega Financial Corporation
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Related links:
http://www.omegafinancial.com
Photo Notes:
NewsCom:
http://www.newscom.com/cgi-bin/prnh/19990921/OMFCLOGO
AP Archive: http://photoarchive.ap.org
PRN Photo Desk, 888-776-6555 or 212-782-2840
CONTACT:
Robert A. Frederick, Director of Public
Relations, Omega Financial, +1-814-231-5773
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