STATE COLLEGE, Pa., April 22 /PRNewswire-FirstCall/ -- Omega Financial
Corporation (Nasdaq: OMEF) achieved record earnings for the quarter ended
March 31, 2005 of $6.58 million, an increase of 82.5% or $2.97 million, when
compared to the same period last year, company officials said.
(Logo: http://www.newscom.com/cgi-bin/prnh/19990921/OMFCLOGO )
Omega Financial merged with Sun Bancorp on October 1 of last year, a
transaction that nearly doubled the company's assets to $2.0 billion, while
adding 23 offices in seven new counties in Eastern Pennsylvania. The company
now has 68 Omega Bank offices in 14 counties.
David B. Lee, Omega Financial's chairman and chief executive officer, said
that the first quarter for 2005 also represented a $643,000 or 10.8% increase
over the earnings for fourth quarter 2004, the first full quarter of
operations since the Sun merger was completed. Fully diluted earnings per
share for the first quarter were $.52 in 2005, compared to $.42 and $.47 per
share for the first and fourth quarter last year, respectively.
"The strength of our first quarter earnings reflects the continuing
efficiencies that we are achieving from the consolidation of the Sun
operations," Lee said. "In addition, completing our balance sheet
restructuring, selling various assets acquired from Sun and the extinguishment
of Sun's long-term Federal Home Loan Bank debt all contributed to the dramatic
increase in our net income."
Lee noted that a gain of $1,043,000 was realized from the early
extinguishment of debt, while securities and a book of loans were sold to fund
the payment at a net gain of $649,000. Omega management also revised its
determination of the value of the Core Deposit Intangible acquired from Sun.
This revised valuation was lower than originally estimated and reduced
amortization costs for the first quarter of 2005 as compared to the fourth
quarter of 2004.
Common share dividends declared rose 3.3% for the quarter compared to last
year's first quarter, while the Return on Average Assets (ROA) remained steady
from that period. ROA rose by 11.3% in the first quarter of this year when
compared to the final quarter of last year.
The effect of the Sun acquisition was evidenced in several categories of
the income statement for the first quarter, Lee said. He noted that income
from credit activities and net interest income were both up approximately 50%.
"Of course, with the addition of Sun's operations comes added expenses, but we
are confident that our commitment to profitable loan growth and expense
control that served us well prior to the merger will continue to do the same
now that these operations are combined," he said.
During the first quarter, Omega opened its 68th office, located in Wilkes-
Barre (Luzerne County). Lee said that this new office and a new office in
Mechanicsburg in the state's Capital Region that opened late last year have
provided excellent opportunities to extend the Omega brand into new service
areas. Omega now has offices throughout Bedford, Blair, Centre, Clinton,
Cumberland, Dauphin, Huntingdon, Juniata, Luzerne, Lycoming, Mifflin,
Northumberland, Snyder and Union counties.
"In both Luzerne County and the Capital Region, we have moved aggressively
to market our hallmarks of outstanding customer service and a broad range of
financial services that meet a variety of needs," Lee commented.
In January, Omega Bank was once again named one of the Top 10 Safest Banks
in the country, according to Weiss Ratings, a national company that provides
ratings for over 15,000 financial institutions. This year marks the third year
in a row that Omega has made the Top 10.
"We are obviously pleased to have earned the Top 10 Safest designation for
the third time in as many years," Lee said. "It is a testament to the hard
work of all the members of the Omega family."
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 . Financial statements and selected financial
highlights are summarized on the following pages.
OMEGA FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED FINANCIAL HIGHLIGHTS
(Unaudited)
(In thousands, except as indicated *)
1st Qtr 1st Qtr % 1st Qtr 4th Qtr %
2005 2004 Change 2005 2004 Change
Earnings:
Net income $ 6,577 $3,604 82.5% $ 6,577 $5,934 10.8%
Per share
statistics: *
Diluted earnings $.52 $.42 23.8% $.52 $.47 10.6%
Dividends declared
- common .31 .30 3.3 .31 .30 3.3
Book value
- common 25.10 20.00 25.5 25.10 25.07 0.1
Book value
- tangible 11.51 20.00 (42.5) 11.51 11.28 2.0
Market value
- High 34.50 38.75 (11.0) 34.50 36.75 (6.1)
Low 29.40 33.71 (12.8) 29.40 30.95 (5.0)
Financial position
at period end:
Assets $ 2,004,159 $1,131,870 77.1% $2,004,159 $2,082,571 (3.8)%
Deposits 1,488,785 898,487 65.7 1,488,785 1,502,082 (0.9)
Net loans 1,265,296 776,765 62.9 1,265,296 1,312,606 (3.6)
Shareholders'
equity 316,433 169,850 86.3 316,433 315,739 0.2
Average Balances:
Assets $ 2,048,010 $1,126,297 81.8% $2,048,010 $2,060,742 (0.6)%
Deposits 1,497,084 893,568 67.5 1,497,084 1,532,995 (2.3)
Net loans 1,298,469 778,694 66.7 1,298,469 1,339,386 (3.1)
Shareholders'
equity 318,589 169,964 87.4 318,589 255,565 24.7
Profitability ratios
- annualized: *
Return on average
assets 1.28% 1.28% -% 1.28% 1.15% 11.3%
Return on average
tangible
equity (1) 18.14% 8.48% 113.9 18.14% 29.06% (37.6)
Return on average
stated
equity (2) 8.26 8.48 (2.6) 8.26 9.29 (11.1)
Net interest margin
- fully tax
equivalent 3.81 4.12 (7.5) 3.81 3.78 0.8
Shares outstanding
at period end: *
Common 12,608,133 8,490,898 48.5% 12,608,133 12,593,524 0.1%
(1) Average tangible equity represents average shareholders' equity less
average intangibles and goodwill.
(2) Average stated equity is equal to average shareholders' equity.
OMEGA FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except share data)
Unaudited
Three Months Ended
March 31,
2005 2004
Interest Income:
Interest and fees on loans $19,347 $11,197
Interest and dividends on investment securities 2,367 1,853
Other interest income 358 56
TOTAL INTEREST INCOME 22,072 13,106
Interest Expense:
Interest on deposits 4,692 2,692
Interest on short-term borrowings 490 76
Interest on long-term debt and
other interest bearing liabilities 1,648 248
TOTAL INTEREST EXPENSE 6,830 3,016
NET INTEREST INCOME 15,242 10,090
Provision for loan losses 142 -
INCOME FROM CREDIT ACTIVITIES 15,100 10,090
Other Income:
Service fees on deposit accounts 2,140 1,339
Service fees on loans 312 281
Earnings on bank-owned life insurance 575 354
Trust fees 1,666 915
Investment and insurance product sales 1,072 302
Gain on the early extinguishment of debt 1,043 -
Gain on sale of loans and other assets (339) (1)
Net gains on investment securities 988 8
Other 1,029 540
TOTAL OTHER INCOME 8,486 3,738
Other Expense:
Salaries and employee benefits 7,551 4,955
Net occupancy expense 1,111 627
Equipment expense 1,089 702
Data processing service 626 423
Pennsylvania shares tax 619 384
Amortization of intangible assets 163 3
Other 3,810 2,139
TOTAL OTHER EXPENSE 14,969 9,233
Income before taxes 8,617 4,595
Income tax expense 2,040 991
NET INCOME $6,577 $3,604
Net income per common share:
Basic $0.52 $0.43
Diluted $0.52 $0.42
Weighted average shares and equivalents:
Basic 12,596 8,471
Diluted 12,659 8,559
Dividends declared per share:
Common $.31 $.30
OMEGA FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)
March 31, December 31,
Assets 2005 2004
Cash and due from banks $49,424 $47,877
Interest bearing deposits with other banks 29,899 31,122
Federal funds sold 17,000 36,350
Investment securities available for sale 315,108 327,979
Investment in unconsolidated subsidiary 1,625 1,625
Loans available for sale 69 22,515
Total portfolio loans 1,280,783 1,305,735
Less: Allowance for loan losses (15,487) (15,644)
Net portfolio loans 1,265,296 1,290,091
Premises and equipment, net 36,979 35,509
Other real estate owned 2,639 3,082
Bank-owned life insurance 73,420 72,845
Investment in limited partnerships 7,338 8,605
Core deposit intangibles 7,349 13,927
Other intangibles 2,731 2,799
Goodwill 161,218 156,959
Other assets 34,064 31,286
TOTAL ASSETS $2,004,159 $2,082,571
Liabilities and Shareholders' Equity
Deposits:
Non-interest bearing $220,520 $228,408
Interest bearing 1,268,265 1,273,674
Total deposits 1,488,785 1,502,082
Short-term borrowings 78,251 90,259
ESOP debt 2,107 2,192
Junior subordinated debentures 57,066 57,190
Long-term debt 43,853 99,579
Other interest bearing liabilities 848 854
Other liabilities 16,816 14,676
TOTAL LIABILITIES 1,687,726 1,766,832
Shareholders' Equity
Preferred stock, par value $5.00 per share:
Authorized - 5,000,000 shares, none issued
Common stock, par value $5.00 per share:
Authorized - 25,000,000 shares;
Issued and outstanding-
12,608,133 shares at March 31, 2005;
12,593,524 shares at December 31, 2004 63,057 62,968
Capital surplus 98,734 98,370
Retained earnings 154,929 152,249
Accumulated other comprehensive income 1,026 3,526
Unearned compensation related to ESOP debt (1,313) (1,374)
TOTAL SHAREHOLDERS' EQUITY 316,433 315,739
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $2,004,159 $2,082,571
SOURCE Omega Financial Corporation
 back to top
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, photodesk@prnewswire.com
CONTACT:
JoAnn McMinn, SVP, Investor Relations Officer
of Omega Financial Corporation, +1-814-231-5779
|
