STATE COLLEGE, Pa., April 24 /PRNewswire-FirstCall/ --
Omega Financial Corporation (Nasdaq: OMEF), serving seven Central Pennsylvania
counties through Omega Bank, reports that first quarter 2003 financial results
reflect stable earnings when compared to the same period last year, according
to company officials.
(Photo: http://www.newscom.com/cgi-bin/prnh/19990921/OMFCLOGO )
David B. Lee, Omega's chairman and chief executive officer, noted that
earnings for the quarter were $0.49 per diluted share, the same as 2002's
first three months. Common share dividends declared rose by 3.6% to $0.29 per
share from $0.28. Lee noted that Omega has increased its dividend in 16 of
the 17 years since the corporation's founding in 1987.
The company's quarterly net income was $4.222 million, compared to
$4.249 million in 2002, Lee said. Omega's annualized Return on Average Assets
(ROA) was unchanged at 1.48%, while Return on Average Equity (ROE) was 10.25%,
compared to 10.71% for the first quarter of 2002.
"Despite continuing economic uncertainties in light of events overseas, we
have maintained our performance," Lee commented. "Similar to other banks, the
current rate environment exerts enormous pressure on our net interest margin.
Accordingly, we have moved to develop new revenue streams by expanding our
range of financial services."
Among those sources of new revenue is the company's Omega Investment
Services division. The group, which kicked off a major marketing campaign
during the first quarter, offers annuities, mutual funds, stocks, bonds and
brokerage services as well as life and long-term care insurance products.
Another source was the Courtesy Coverage service offered by Omega Bank to its
depositors.
In addition to the new revenue sources, increased demand for residential
mortgages and commercial loans generated increased fee income, that helped
offset the pressure on the net interest margin and rising expenses.
"The company has also enhanced its financial information presentation on
our web site," Lee said. Investors can access a company profile, stock price
information, latest news releases and quarterly and annual reports at the
Financial Profile link from the Omega home page (http://www.omegafinancial.com).
OMEGA FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED FINANCIAL HIGHLIGHTS
(Unaudited)
(In thousands, except as indicated *)
For the Quarter
2003 2002 % Change
Earnings:
Net income $4,222 $4,249 (0.6)%
Per share statistics:
Diluted earnings $.49 $.49 --%
Dividends declared - common .29 .28 3.6
Dividends declared - preferred .45 .45 --
Book value - common 19.84 18.79 5.6
Market value - High 36.65 32.95 11.2
Low 31.25 30.02 4.1
Financial position at March 31:
Assets $1,161,911 $1,163,212 (0.1)%
Deposits 918,982 933,449 (1.5)
Net loans 781,877 740,546 5.6
Shareholders' equity 164,292 157,985 4.0
Average Balances:
Assets $1,137,372 $1,148,703 (1.0)%
Deposits 904,509 922,873 (2.0)
Net loans 779,746 746,289 4.5
Shareholders' equity 164,739 158,665 3.8
Profitability ratios - annualized: *
Return on average assets 1.48% 1.48% 0.0%
Return on average equity 10.25 10.71 (4.3)
Net interest margin - fully tax
equivalent 4.46 4.48 (0.4)
Shares outstanding at March 31: *
Common 8,119,361 8,252,468 (1.6)%
Preferred 219,781 219,781 --
OMEGA FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except share data)
Unaudited
Three Months Ended
March 31,
2003 2002
Interest Income:
Interest and fees on loans $12,322 $13,355
Interest and dividends on investment
securities 2,324 3,102
Other interest income 97 170
TOTAL INTEREST INCOME 14,743 16,627
Interest Expense:
Interest on deposits 3,404 5,099
Interest on short-term borrowings 123 191
Interest on long-term debt and
other interest bearing liabilities 216 205
TOTAL INTEREST EXPENSE 3,743 5,495
NET INTEREST INCOME 11,000 11,132
Provision for loan losses 100 230
INCOME FROM CREDIT ACTIVITIES 10,900 10,902
Other Income:
Service fees on deposit accounts 1,404 981
Service fees on loans 402 272
Earnings on bank-owned life insurance 386 389
Trust fees 892 1,051
Brokerage fees 110 -
Gain on sale of loans and other assets 4 64
Net gains on investment securities 31 92
Other 667 766
TOTAL OTHER INCOME 3,896 3,615
Other Expense:
Salaries and employee benefits 4,939 4,884
Net occupancy expense 630 560
Equipment expense 715 570
Data processing service 419 407
Other 2,673 2,523
TOTAL OTHER EXPENSE 9,376 8,944
Income before taxes 5,420 5,573
Income tax expense 1,198 1,324
NET INCOME $4,222 $4,249
Net income per common share:
Basic $.51 $.50
Diluted $.49 $.49
Weighted average shares and
equivalents:
Basic 8,100,962 8,233,767
Diluted 8,528,178 8,681,610
OMEGA FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands)
Unaudited
March 31, December 31,
Assets 2003 2002
Cash and due from banks $39,790 $36,049
Interest bearing deposits with other
financial institutions 15,641 8,757
Federal funds sold 23,500 33,900
Investment securities available for sale 244,134 251,508
Total loans 792,919 779,830
Less: Unearned discount (8) (11)
Allowance for loan losses (11,034) (11,052)
Net loans 781,877 768,767
Premises and equipment, net 14,474 14,719
Bank-owned life insurance 32,126 31,739
Other assets 10,369 9,118
TOTAL ASSETS $1,161,911 $1,154,557
Liabilities and Shareholders' Equity
Deposits:
Non-interest bearing $147,551 $148,498
Interest bearing 771,431 770,757
Total deposits 918,982 919,255
Short-term borrowings 31,791 41,452
Other liabilities 20,875 11,909
ESOP debt 2,756 2,832
Long-term debt 22,460 16,237
Other interest bearing liabilities 755 762
TOTAL LIABILITIES 997,619 992,447
TOTAL SHAREHOLDERS' EQUITY 164,292 162,110
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $1,161,911 $1,154,557
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:
Daniel L. Warfel, Chief Financial Officer of
Omega Financial, +1-814-231-5778
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