STATE COLLEGE, Pa., Feb. 24 /PRNewswire-FirstCall/ -- Omega Financial
Corporation (Nasdaq: OMEF) achieved record earnings for the quarter ended
December 31, 2004 of just over $5.9 million, an increase of $1.5 million or
35.1% over the same period last year. Earnings per diluted share for the
quarter were $.47 as compared to $.51 for the same period last year, a 7.8%
decrease.
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David B. Lee, Omega's chairman and chief executive officer, said that the
results for the fourth quarter reflect the addition of Sun Bancorp's
operations and a balance sheet restructuring that included the early
retirement of $171 million of long term Federal Home Loan Bank Debt and the
sale of certain assets all owned by Sun. The purpose of the restructuring was
to improve Omega's margin and asset quality. Omega completed its merger with
Sun on October 1 of last year.
The restructuring added gains of $570,000 from the debt extinguishment and
$653,000 from security sales, Lee explained. The total of these transactions
was to increase income before taxes by $1.2 million. Net income contributed
from operations of the former Sun franchise for the quarter and the year was
approximately $1.5 million, exclusive of the effect of the balance sheet
restructuring. Including the effect of the restructuring, the former Sun
franchise contribution to net income was approximately $2.5 million for both
periods.
For the year, Omega's earnings were $17.0 million as compared to
$17.2 million for 2003, a 1% decrease. Earnings per diluted share for 2004
were $1.78 verses $2.01 for 2003, an 11.4% decrease.
The Sun acquisition expanded Omega's market presence into seven additional
counties in Central Pennsylvania and Northeastern Pennsylvania while adding 23
branches. The total price paid for Sun was $187.7 million, resulting in
goodwill and intangibles of $17.1 million being created. To pay for the merger
Omega issued 4,117,116 shares of common stock and paid cash of $35.9 million.
Omega now has 68 offices throughout Bedford, Blair, Centre, Clinton,
Cumberland, Dauphin, Huntingdon, Juniata, Luzerne, Lycoming, Mifflin,
Northumberland, Snyder and Union counties. The bank opened new offices in
Cumberland County late last year and in Luzerne County this month.
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
CONSOLIDATED BALANCE SHEETS
(In thousands)
Unaudited
December 31, December 31,
Assets 2004 2003
Cash and due from banks $47,877 $32,420
Interest bearing deposits with other
financial institutions 31,122 10,682
Federal funds sold 36,350 17,850
Investment securities available for sale 327,979 240,539
Investment in unconsolidated subsidiary 1,625 -
Total loans 1,328,250 788,144
Less: Allowance for loan losses (15,644) (10,569)
Net loans 1,312,606 777,575
Premises and equipment, net 35,509 14,348
Other real estate owned 3,082 741
Bank-owned life insurance 72,845 37,134
Investment in limited partnerships 8,605 -
Core deposit intangibles 13,927 50
Other intangibles 2,799 -
Goodwill 156,959 -
Other assets 31,286 8,827
TOTAL ASSETS $2,082,571 $1,140,166
Liabilities and Shareholders' Equity
Deposits:
Non-interest bearing $228,408 $155,702
Interest bearing 1,273,674 751,878
Total deposits 1,502,082 907,580
Short-term borrowings 90,241 33,263
ESOP debt 2,192 2,521
Junior subordinated debt 57,190 -
Long-term debt 99,597 21,600
Other interest bearing liabilities 854 813
Other liabilities 14,676 6,950
TOTAL LIABILITIES 1,766,832 972,727
TOTAL SHAREHOLDERS' EQUITY 315,739 167,439
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $2,082,571 $1,140,166
OMEGA FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except share data)
Unaudited
Three Months Ended Twelve Months Ended
December 31, December 31,
2004 2003 2004 2003
Interest Income:
Interest and fees on loans $20,217 $11,472 $53,396 $47,710
Interest and dividends
on investment securities 3,032 2,040 8,418 8,765
Other interest income 252 44 557 308
TOTAL INTEREST INCOME. 23,501 13,556 62,371 56,783
Interest Expense:
Interest on deposits 4,891 2,803 12,964 12,339
Interest on short-term borrowings 1,003 64 1,302 329
Interest on long-term debt and
other interest bearing liabilities 1,651 270 2,400 1,038
TOTAL INTEREST EXPENSE 7,545 3,137 16,666 13,706
NET INTEREST INCOME 15,956 10,419 45,705 43,077
Provision for loan losses (300) (300) 350
INCOME FROM CREDIT ACTIVITIES 16,256 10,419 46,005 42,727
Other Income:
Service fees on deposit accounts 2,508 1,436 7,076 5,754
Service fees on loans 668 220 1,547 1,351
Earnings on bank-owned life insurance 578 292 1,581 1,395
Trust fees 1,438 885 4,027 3,623
Gain on the early extinguishment
of debt 570 570
Gain on sale of loans and
other assets (115) 11 (102) 292
Net gains on investment securities 692 140 963 1,127
Other 2,127 786 4,744 3,263
TOTAL OTHER INCOME 8,466 3,770 20,406 16,805
Other Expense:
Salaries and employee benefits 8,193 4,931 22,888 20,091
Net occupancy expense 1,057 599 2,790 2,372
Equipment expense 1,109 685 3,246 2,777
Data processing service 547 402 1,839 1,673
Pennsylvania shares tax 562 386 1,705 1,539
Amortization of intangible assets 394 2 402 10
Other 4,884 2,014 11,198 9,059
TOTAL OTHER EXPENSE 16,746 9,019 44,068 37,521
Income before taxes 7,976 5,170 22,343 22,011
Income tax expense 2,042 779 5,322 4,826
NET INCOME $5,934 $4,391 $17,021 $17,185
Net income per common share:
Basic $0.47 $0.52 $1.79 $2.07
Diluted $0.47 $0.51 $1.78 $2.01
Weighted average shares
and equivalents:
Basic 12,531 8,112 9,484 8,169
Diluted 12,627 8,564 9,579 8,524
Dividends declared per share:
Common $.30 $.30 $1.20 $1.17
Preferred $1.35
OMEGA FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED FINANCIAL HIGHLIGHTS
(Unaudited)
(In thousands, except as indicated*)
For the Quarter Year to Date
2004 2003 % Change 2004 2003 % Change
Earnings:
Net income $5,934 $4,391 35.1% $17,021 $17,185 (1.0)%
Per share
statistics: *
Diluted earnings $.47 $.51 (7.8)% $1.79 $2.01 (10.9)%
Dividends declared
- common .30 .30 0.0 1.20 1.17 2.6
Dividends declared
- preferred - - - - 1.35 (100.0)
Book value
- common 25.07 19.79 26.7 25.07 19.79 26.7
Book value
- tangible 11.28 19.79 - 11.28 19.79 -
Market value
- High 36.75 38.99 (5.7) 38.75 38.99 (0.6)
Low 30.95 33.24 (6.9) 29.13 31.25 (6.8)
Financial position
at December 31:
Assets $2,082,571 $1,140,166 82.7% $2,082,571 $1,140,166 82.7%
Deposits 1,502,082 907,580 65.5 1,502,082 907,580 65.5
Net loans 1,312,606 777,575 68.8 1,312,606 777,575 68.8
Shareholders'
equity 315,739 167,439 88.6 315,739 167,439 88.6
Average Balances:
Assets $2,060,742 $1,139,723 80.8% $1,371,227 $1,145,407 19.7%
Deposits 1,532,995 907,179 69.0 1,065,230 913,178 16.7
Net loans 1,339,386 780,352 71.6 913,596 779,025 17.3
Shareholders'
equity 255,565 167,810 52.3 191,512 166,469 15.0
Profitability ratios -
annualized: *
Return on
average assets 1.15% 1.54% (25.3)% 1.24% 1.50% (17.3)%
Return on
average tangible
equity (1) 29.06% 10.47% 177.6 11.84% 10.32% 14.7
Return on
average stated
equity (2) 9.29 10.47 (11.3) 8.89 10.32 (13.9)
Net interest
margin - fully
tax equivalent 3.78 4.19 (9.8) 3.92 4.32 (9.3)
Shares outstanding
at December 31: *
Common 12,593,524 8,458,823 48.9% 12,593,524 8,458,823 48.9%
(1) Average tangible equity represents average shareholders' equity less
average intangibles and goodwill.
(2) Average stated equity is equal to average shareholders' equity.
SOURCE Omega Financial Corporation
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