STATE COLLEGE, Pa., Jan. 26 /PRNewswire-FirstCall/ -- Omega Financial
Corporation (Nasdaq: OMEF) reported 2003 net income of $17.185 million, a
reduction of $994,000, or 5.5%, when compared to net income in 2002 of
$18.179 million, company officials said. Net income for the fourth quarter of
2003 was $4.391 million, a reduction of 3.9%, when compared to 2002 net income
of $4.571 for the same period. Diluted earnings per share are $2.01 for the
year as compared to $2.10 in 2002. In the fourth quarter, diluted earnings per
share were $.51 compared to $.53 in the same period last year. The company's
annual cash dividend per common share rose by 3.5% from last year, from
$1.13 to $1.17.
(Logo: http://www.newscom.com/cgi-bin/prnh/19990921/OMFCLOGO )
"As we noted throughout the year, the rate environment we found ourselves
in exerted continuing pressure on our net interest margin," said David B. Lee,
Omega's chairman and chief executive officer. "The decline in net interest
margin of 5.1%, or $2.560 million caused by both lower rates and reduced
earning assets, negated our otherwise solid performances by both our
traditional product line and new lines of business we have added to enhance
future revenue."
Gains on the sale of loans and investment securities was $934,000 higher
in 2003 than the previous year. In addition, the company reflected the benefit
of a lower effective tax rate for 2003 during the fourth quarter, which
improved net income by $357,000.
"We are encouraged that our loan quality remains strong, and has even
improved," Lee said, noting that the company reduced its non-performing loans
by 9% as compared to prior year-end, resulting in a decreased provision for
loan losses. "We achieved this positive result despite a sputtering economy
and a number of lost jobs in the bank's service area," he said. "We felt that
it was paramount to further strengthen what is already a solid loan portfolio
by maintaining our loan quality standards."
Average outstanding loans in total increased by nearly 2%, despite sales
of loans during the year. A decline in average earning assets of $5.7 million,
Lee said, was due to the sale of approximately $10 million in consumer
mortgage loans in the second quarter of this year. Additionally, nearly
$2 million in student loans was sold in the second quarter.
The company's non-interest income continues to climb, rising by
$837,000, or 5.8%. Lee attributed that increase to continuing customer
satisfaction with both traditional services provided by Omega Bank and a
variety of new products now offered at the bank's offices and online. "The new
services we offer through our insurance and investment services divisions,
such as annuities and long-term care insurance, have been gaining customer
acceptance. We have become a source of financial services that suit a broader
range of needs," Lee said. "At the same time, our free checking account has
become very popular and customers like our new courtesy overdraft service.
We've also made our online banking more powerful, with additions to our
website that include instant views of cleared check images. These changes are
all geared to greater customer convenience."
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 FINANCIAL HIGHLIGHTS
(Unaudited)
(In thousands, except as indicated * )
For the Quarter
2003 2002 % Change
Earnings:
Net income $4,391 $4,571 (3.9)%
Per share statistics: *
Diluted earnings $.51 $.53 (3.8)%
Dividends declared - common .30 .29 3.4
Dividends declared - preferred - .45 (100.0)
Book value - common 19.79 20.01 (1.1)
Market value - High 38.99 37.25 4.7
Low 33.24 33.17 0.2
Financial position at December 31:
Assets $1,140,166 $1,154,557 (1.2)%
Deposits 907,580 919,255 (1.3)
Net loans 777,575 768,767 1.1
Shareholders' equity 167,439 162,110 3.3
Average Balances:
Assets $1,139,723 $1,142,827 (0.3)%
Deposits 907,179 910,452 (0.4)
Net loans 780,352 778,227 0.3
Shareholders' equity 167,810 162,661 3.2
Profitability ratios - annualized: *
Return on average assets 1.54% 1.60% (3.8)%
Return on average equity 10.47 11.24 (6.9)
Net interest margin - fully tax
equivalent 4.19 4.63 (9.5)
Shares outstanding at December 31: *
Common 8,458,823 8,099,778 4.4%
Preferred - 219,781 (100.0)%
OMEGA FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED FINANCIAL HIGHLIGHTS
(Unaudited)
(In thousands, except as indicated * )
Year to Date
2003 2002 % Change
Earnings:
Net income $17,185 $18,179 (5.5)%
Per share statistics: *
Diluted earnings $2.01 $2.10 (4.3)%
Dividends declared - common 1.17 1.13 3.5
Dividends declared - preferred 1.35 1.80 (25.0)
Book value - common 19.79 20.01 (1.1)
Market value - High 38.99 37.25 4.7
Low 31.25 30.20 3.5
Financial position at December 31:
Assets $1,140,166 $1,154,557 (1.2)%
Deposits 907,580 919,255 (1.3)
Net loans 777,575 768,767 1.1
Shareholders' equity 167,439 162,110 3.3
Average Balances:
Assets $1,145,407 $1,149,810 (0.4)%
Deposits 913,178 921,052 (0.9)
Net loans 779,025 764,499 1.9
Shareholders' equity 166,469 160,551 3.7
Profitability ratios - annualized: *
Return on average assets 1.50% 1.58% (5.1)%
Return on average equity 10.32 11.32 (8.8)
Net interest margin - fully tax
equivalent 4.32 4.58 (5.7)
Shares outstanding at December 31: *
Common 8,458,823 8,099,778 4.4%
Preferred - 219,781 (100.0)%
OMEGA FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except share data)
Unaudited
Twelve Months
Three Months Ended Ended
December 31, December 31,
2003 2002 2003 2002
Interest Income:
Interest and fees on loans $11,472 $12,893 $47,710 $52,895
Interest and dividends on investment
securities 2,040 2,710 8,765 11,683
Other interest income 44 68 308 382
TOTAL INTEREST INCOME 13,556 15,671 56,783 64,960
Interest Expense:
Interest on deposits 2,803 3,780 12,339 17,777
Interest on short-term borrowings 64 180 329 754
Interest on long-term debt and
other interest bearing liabilities 270 191 1,038 792
TOTAL INTEREST EXPENSE 3,137 4,151 13,706 19,323
NET INTEREST INCOME 10,419 11,520 43,077 45,637
Provision for loan losses - - 350 630
INCOME FROM CREDIT ACTIVITIES 10,419 11,520 42,727 45,007
Other Income:
Service fees on deposit accounts 1,436 1,524 5,754 5,099
Service fees on loans 220 440 1,351 1,227
Earnings on bank-owned life insurance 292 364 1,395 1,523
Trust fees 885 766 3,623 3,585
Gain on sale of loans and other assets 11 5 292 73
Net gains on investment securities 140 3 1,127 412
Other 786 748 3,263 3,115
TOTAL OTHER INCOME 3,770 3,850 16,805 15,034
Other Expense:
Salaries and employee benefits 4,931 5,013 20,091 19,753
Net occupancy expense 599 597 2,372 2,287
Equipment expense 685 695 2,777 2,577
Data processing service 402 494 1,673 1,740
Other 2,402 2,541 10,608 9,855
TOTAL OTHER EXPENSE 9,019 9,340 37,521 36,212
Income before taxes 5,170 6,030 22,011 23,829
Income tax expense 779 1,459 4,826 5,650
NET INCOME $4,391 $4,571 $17,185 $18,179
Net income per common share:
Basic $.52 $.55 $2.07 $2.17
Diluted $.51 $.53 $2.01 $2.10
Weighted average shares and equivalents:
Basic 8,384 8,112 8,169 8,189
Diluted 8,545 8,564 8,524 8,621
Dividends declared per share:
Common $0.30 $.29 $1.17 $1.13
Preferred $ - $.45 $1.35 $1.80
OMEGA FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands)
Unaudited
December 31, December 31,
Assets 2003 2002
Cash and due from banks $32,420 $36,049
Interest bearing deposits with other
financial institutions 10,682 8,757
Federal funds sold 17,850 33,900
Investment securities available for sale 240,539 251,508
Total loans 788,144 779,819
Less: Allowance for loan losses (10,569) (11,052)
Net loans 777,575 768,767
Premises and equipment, net 14,348 14,719
Bank-owned life insurance 37,134 31,739
Other assets 9,618 9,118
TOTAL ASSETS $1,140,166 $1,154,557
Liabilities and Shareholders' Equity
Deposits:
Non-interest bearing $155,702 $148,498
Interest bearing 751,878 770,757
Total deposits 907,580 919,255
Short-term borrowings 33,263 41,452
Other liabilities 6,950 11,909
ESOP debt 2,521 2,832
Long-term debt 21,600 16,237
Other interest bearing liabilities 813 762
TOTAL LIABILITIES 972,727 992,447
TOTAL SHAREHOLDERS' EQUITY 167,439 162,110
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $1,140,166 $1,154,557
SOURCE Omega Financial Corporation
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Photo Notes:
NewsCom:
http://www.newscom.com/cgi-bin/prnh/19990921/OMFCLOGO
AP Archive: http://photoarchive.ap.org
PRN Photo Desk, photodesk@prnewswire.com /Web site:
http://www.omegafinancial.com
CONTACT:
JoAnn McMinn, SVP, Investor Relations Officer
of Omega Financial Corporation, +1-814-231-5779
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