STATE COLLEGE, Pa., April 26 /PRNewswire-FirstCall/ -- Omega Financial
Corporation (Nasdaq: OMEF) reported first quarter 2004 net income of
$3.604 million, a reduction of $618,000, or 14.6%, when compared to the same
period last year, company officials said. Diluted earnings per share are $0.42
for the quarter as compared to $0.49 in 2003, said David B. Lee, Omega's
chairman and chief executive officer.
(Logo: http://www.newscom.com/cgi-bin/prnh/19990921/OMFCLOGO )
The company's common share dividends declared rose by 3.4% to $0.30 from
$0.29 in the same quarter last year, Lee said. In addition, he noted that the
company's already-solid loan portfolio was further strengthened by reducing
non-performing loans by 4% as compared to December 31, 2003, resulting in a
$100,000 decrease in the amount of provision for loan losses in the first
quarter of 2004 as compared to the first quarter of 2003. "We continue to
experience pressure on our net interest margin in this rate environment," he
noted, "but we have maintained our conservative lending practices because we
are committed to profitable loan growth." That rate pressure resulted in a
decline in the net interest margin of 7.6% for the quarter.
The company also continued its strong efforts to reduce costs, reducing
non-interest expense by 1.5% in the first quarter of 2004 as compared to the
first quarter of 2003. "The rate environment demands that we maintain a
constant vigil on operating costs, and this reduction represents an
affirmation of our efforts to rein in costs," Lee explained.
"We continue to devote resources to our non-traditional sources of income
such as the products offered by our insurance and investment services
divisions," Lee said. "As the local economy improves, the new relationships we
have forged through these product offerings should strengthen our overall
market position by providing an added customer base for traditional products."
On April 20, 2004, Omega announced an agreement to acquire Sun Bancorp,
Inc. (Nasdaq: SUBI). Under the terms of the merger agreement, Sun Bancorp
shareholders will be entitled to receive either 0.664 shares of Omega
Financial common stock for each share of Sun Bancorp common stock or $23.25 in
cash for each share held subject to pro rata allocation such that 20% of Sun
Bancorp common stock shall be paid in cash and 80% will be in the form of
Omega Financial Corporation common stock. This transaction is expected to be
accretive to Omega's earnings per share by the end of the first full year of
combined operations. The combined assets of Omega Financial and Sun Bancorp
based on both companies' assets at March 31, 2004 will be approximately
$2.1 billion. The definitive agreement has been approved unanimously by the
Boards of Directors of both companies. The transaction is subject to all
required regulatory approvals and approvals by Omega Financial Corporation and
Sun Bancorp shareholders and certain other customary conditions. The
transaction is anticipated to close late in the third quarter or early fourth
quarter 2004.
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
2004 2003 % Change
Earnings:
Net income $3,604 $4,222 (14.6)%
Per share statistics:
Diluted earnings $.42 $.49 (14.3)
Dividends declared - common .30 .29 3.4
Dividends declared -
preferred - .45 (100.0)
Book value - common 20.00 19.84 0.8
Market value - High 38.75 36.65 5.7
Low 33.71 31.25 7.9
Financial position at
March 31:
Assets $1,131,870 $1,161,911 (2.6)%
Deposits 898,487 918,982 (2.2)
Net loans 776,765 781,877 (0.7)
Shareholders' equity 169,850 164,292 3.4
Average Balances:
Assets $1,126,297 $1,137,372 (1.0)%
Deposits 893,568 904,509 (1.2)
Net loans 778,694 779,746 (0.1)
Shareholders' equity 169,964 164,739 3.2
Profitability ratios -
annualized: *
Return on average assets 1.28% 1.48% (13.5)%
Return on average equity 8.48 10.25 (17.3)
Net interest margin - fully
tax equivalent 4.12 4.46 (7.6)
Shares outstanding at
March 31: *
Common 8,490,898 8,119,361 4.6%
Preferred - 219,781 (100.0)
OMEGA FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except share data)
Unaudited
Three Months Ended
March 31,
2004 2003
Interest Income:
Interest and fees on loans $11,197 $12,322
Interest and dividends on
investment securities 1,853 2,324
Other interest income 56 97
TOTAL INTEREST INCOME 13,106 14,743
Interest Expense:
Interest on deposits 2,692 3,404
Interest on short-term borrowings 76 123
Interest on long-term debt and
other interest bearing liabilities 248 216
TOTAL INTEREST EXPENSE 3,016 3,743
NET INTEREST INCOME 10,090 11,000
Provision for loan losses - 100
INCOME FROM CREDIT ACTIVITIES 10,090 10,900
Other Income:
Service fees on deposit accounts 1,339 1,404
Service fees on loans 281 402
Earnings on bank-owned life
insurance 354 386
Trust fees 915 892
Gain on sale of loans and
other assets (1) 4
Net gains on investment securities 8 31
Other 842 777
TOTAL OTHER INCOME 3,738 3,896
Other Expense:
Salaries and employee benefits 4,955 4,939
Net occupancy expense 627 630
Equipment expense 702 715
Data processing service 423 419
Other 2,526 2,673
TOTAL OTHER EXPENSE 9,233 9,376
Income before taxes 4,595 5,420
Income tax expense 991 1,198
NET INCOME $3,604 $4,222
Net income per common share:
Basic $.43 $.51
Diluted $.42 $.49
Weighted average shares
and equivalents:
Basic 8,470,961 8,100,962
Diluted 8,559,206 8,528,178
Dividends declared per share:
Common $.30 $.29
Preferred - $.45
OMEGA FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands)
Unaudited
March 31, December 31,
Assets 2004 2003
Cash and due from banks $31,353 $32,420
Interest bearing deposits with
other financial institutions 15,317 10,682
Federal funds sold 29,100 17,850
Investment securities available
for sale 216,675 240,539
Total loans 787,216 788,144
Less: Allowance for loan losses (10,451) (10,569)
Net loans 776,765 777,575
Premises and equipment, net 14,323 14,348
Bank-owned life insurance 37,488 37,134
Other assets
10,849 9,618
TOTAL ASSETS $ 1,131,870 $ 1,140,166
Liabilities and Shareholders' Equity
Deposits:
Non-interest bearing $149,662 $155,702
Interest bearing 748,825 751,878
Total deposits 898,487 907,580
Short-term borrowings 31,516 33,263
Other liabilities 7,464 6,950
ESOP debt 2,441 2,521
Long-term debt 21,305 21,600
Other interest bearing liabilities 807 813
TOTAL LIABILITIES 962,020 972,727
TOTAL SHAREHOLDERS' EQUITY 169,850 167,439
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $ 1,131,870 $ 1,140,166
SOURCE Omega Financial Corporation
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Related links:
http://www.omegafinancial.com
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CONTACT:
JoAnn McMinn SVP, Director of Investor
Relations of Omega Financial Corporation, +1-814-231-5779
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