STATE COLLEGE, Pa., July 19 /PRNewswire-FirstCall/ -- Omega Financial
Corporation (Nasdaq: OMEF) reported second quarter 2004 net income of
$3.931 million, a reduction of $301,000, or 7.1%, when compared to the same
period last year, company officials said. Diluted earnings per share are $0.46
for the quarter as compared to $0.49 in 2003, said David B. Lee, Omega's
chairman and chief executive officer. The company's common share dividends
declared rose by 3.4% to $0.30 from $0.29 in the same quarter last year.
(Logo: http://www.newscom.com/cgi-bin/prnh/19990921/OMFCLOGO )
For the year to date, the company's net income is $7.535 million compared
to $8.454 million for the same period in 2003. Per share diluted earnings are
$0.88, compared to $0.99 for last year. Omega's common share dividends
declared are up 3.4% to $0.60 from $0.58, Lee said.
Lee said, "We have continued to strengthen our historically strong,
conservative loan portfolio by reducing non-performing loans by 9.4% since
year-end 2003, resulting in a reduction in the loan loss provision by $250,000
when compared to the first six months of 2003. The rate environment persists
in exerting pressure on Omega's net interest margin, which declined by 8.5%
and 7.5% for the quarter and year to date, respectively," he added.
"At the same time, we are aggressively marketing a variety of products to
develop more total relationships with existing and potential customers," Lee
said. "Through our branch network, customer information center and our
website, we provide multiple points of convenient access to customers,
allowing us opportunities to broaden the amount of services we provide to each
customer."
Early in the quarter, Omega announced an agreement to acquire Sun Bancorp,
Inc. (Nasdaq: SUBI). This transaction, which is expected to close late in the
third quarter or early in the fourth quarter of this year, should add to
Omega's earnings per share by the end of the first full year of combined
operations.
Omega 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 will file relevant documents concerning the transaction with the
SEC, including a registration statement on Form S-4. Investors are urged to
read the registration statement on Form S-4 containing a prospectus/proxy
statement regarding the proposed transaction and any other documents filed
with the SEC, as well as any amendments to these documents, because they
contain (or will contain) important information. Investors are able to obtain
those documents free of charge at the SEC's website ( http://www.sec.gov ). In
addition, documents filed with the SEC by Omega can be obtained, without
charge, by directing a request to Omega Financial Corporation, 366 Walker
Drive, State College, PA 16804, Attention: JoAnn McMinn, Corporate Controller
(tel: 877- 861-7800). INVESTORS ARE URGED TO READ THESE DOCUMENTS, AS WELL AS
ANY AMENDMENTS AND SUPPLEMENTS TO THESE DOCUMENTS BECAUSE THEY CONTAIN OR WILL
CONTAIN IMPORTANT INFORMATION.
This news release contains certain forward-looking statements about the
proposed merger within the meaning of the Private Securities Litigation Reform
Act of 1995. These include statements regarding the anticipated future
results. Forward-looking statements can be identified by the fact that they do
not relate strictly to historical or current facts. They often include words
like "believe," "expect," "anticipate," "estimate" and "intend" or future or
conditional verbs such as "will," "would," "should," "could" or "may." These
forward-looking statements are based upon the current beliefs and expectations
of Omega's management and are inherently subject to significant business,
economic and competitive uncertainties and contingencies, many of which are
beyond the companies' control. In addition, these forward-looking statements
are subject to the assumptions set forth below with respect to future business
strategies and decisions that are subject to change. Actual results may
differ materially from the anticipated results discussed in these forward-
looking statements. Omega does not undertake any obligation to update any
forward-looking statement to reflect circumstances or events that occur after
the date the forward-looking statements are made. Factors that may cause
actual results to differ materially from those contemplated by such forward-
looking statements include, among other things, the following possibilities:
(1) competitive pressure among depository institutions increases
significantly; (2) costs related to the integration of the business of Omega
are greater than expected; (3) operating costs, customer losses and business
disruption following the merger may be greater than expected; (4) governmental
approvals of the merger and/or the conversion may not be obtained, or adverse
regulatory conditions may be imposed in connection with governmental approvals
of the merger and/or the conversion; (5) Omega and/or Sun Bancorp, Inc.
shareholders may fail to approve the merger; (6) adverse governmental or
regulatory policies may be enacted; (7) changes in the interest rate
environment reduces interest margins; (8) general economic conditions, either
nationally or in the states in which the combined company will be doing
business, are less favorable than expected; (9) legislation or regulatory
requirements or changes adversely affect the business in which the combined
company will be engaged; and (10) changes may occur in the securities market.
OMEGA FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands)
Unaudited
June 30, December 31,
Assets 2004 2003
Cash and due from banks $31,494 $32,420
Interest bearing deposits with other financial
institutions 19,650 10,682
Federal funds sold 28,200 17,850
Investment securities available for sale 242,976 240,539
Total loans 773,829 788,144
Less: Allowance for loan losses (10,226) (10,569)
Net loans 763,603 777,575
Premises and equipment, net 13,934 14,348
Bank-owned life insurance 37,818 37,134
Other assets 12,195 9,618
TOTAL ASSETS $ 1,149,870 $ 1,140,166
Liabilities and Shareholders' Equity
Deposits:
Non-interest bearing $157,656 $155,702
Interest bearing 759,002 751,878
Total deposits 916,658 907,580
Short-term borrowings 27,989 33,263
Other liabilities 14,502 6,950
ESOP debt 2,360 2,521
Long-term debt 21,005 21,600
Other interest bearing liabilities 840 813
TOTAL LIABILITIES 983,354 972,727
TOTAL SHAREHOLDERS' EQUITY 166,516 167,439
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 1,149,870 $ 1,140,166
OMEGA FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except share data)
Unaudited
Three Months Ended Six Months Ended
June 30, June 30,
2004 2003 2004 2003
Interest Income:
Interest and fees on loans $10,995 $12,200 $22,192 $24,522
Interest and dividends on
investment securities 1,759 2,132 3,612 4,456
Other interest income 91 125 147 222
TOTAL INTEREST INCOME 12,845 14,457 25,951 29,200
Interest Expense:
Interest on deposits 2,643 3,235 5,335 6,639
Interest on short-term
borrowings 72 74 148 197
Interest on long-term debt
and other interest bearing
liabilities 244 279 492 495
TOTAL INTEREST EXPENSE 2,959 3,588 5,975 7,331
NET INTEREST INCOME 9,886 10,869 19,976 21,869
Provision for loan losses - 150 - 250
INCOME FROM CREDIT ACTIVITIES 9,886 10,719 19,976 21,619
Other Income:
Service fees on deposit
accounts 1,577 1,462 2,916 2,866
Service fees on loans 366 379 647 781
Earnings on bank-owned life
insurance 330 387 684 773
Trust fees 884 912 1,799 1,804
Gain on sale of loans and
other assets 2 275 1 279
Net gains on investment
securities 203 699 211 730
Other 922 871 1,764 1,648
TOTAL OTHER INCOME 4,284 4,985 8,022 8,881
Other Expense:
Salaries and employee
benefits 4,802 5,089 9,757 10,028
Net occupancy expense 559 556 1,186 1,186
Equipment expense 729 681 1,431 1,396
Data processing service 430 421 853 840
Other 2,524 3,285 5,050 5,958
TOTAL OTHER EXPENSE 9,044 10,032 18,277 19,408
Income before taxes 5,126 5,672 9,721 11,092
Income tax expense 1,195 1,440 2,186 2,638
NET INCOME $3,931 $4,232 $7,535 $8,454
Net income per common
share:
Basic $.46 $.51 $0.89 $1.02
Diluted $.46 $.49 $0.88 $0.99
Weighted average shares
and equivalents:
Basic 8,470,144 8,103,453 8,469,327 8,102,215
Diluted 8,545,729 8,541,569 8,532,528 8,531,939
Dividends declared per
share:
Common $.30 $.29 $.60 $.58
Preferred - $.45 - $.90
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 $ 3,931 $ 4,232 (7.1)% $ 7,535 $ 8,454 (10.9)%
Per share
statistics: *
Diluted
earnings $.46 $.49 (6.1)% $.88 $.99 (11.1)%
Dividends
declared
- common .30 .29 3.4 .60 .58 3.4
Dividends
declared
- preferred - .45 (100.0) - .90 (100.0)
Book value
- common 19.73 19.95 (1.1) 19.73 19.95 (1.1)
Market value
- High 37.97 37.74 0.6 38.75 37.74 2.7
Low 29.21 32.80 (10.9) 29.21 31.25 (6.5)
Financial position
at June 30:
Assets $1,149,870 $1,170,727 (1.8)% $1,149,870 $1,170,727 (1.8)%
Deposits 916,658 926,360 (1.0) 916,658 926,360 (1.0)
Net loans 763,603 773,647 (1.3) 763,603 773,647 (1.3)
Shareholders'
equity 166,516 164,815 1.0 166,516 164,815 1.0
Average Balances:
Assets $1,141,139 $1,148,424 (0.6)% $1,133,632 $1,142,934 (0.8)%
Deposits 911,057 917,235 (0.7) 902,229 910,907 (1.0)
Net loans 780,948 780,321 0.1 785,082 780,033 0.6
Shareholders'
equity 171,168 166,215 3.0 170,565 165,487 3.1
Profitability ratios
- annualized: *
Return on
average
assets 1.38% 1.47% (6.1)% 1.33% 1.48% (10.1)%
Return on
average
equity 9.19 10.18 (9.7) 8.84 10.22 (13.5)
Net interest
margin -
fully tax
equivalent 3.98 4.35 (8.5) 4.06 4.39 (7.5)
Shares
outstanding
at June 30: *
Common 8,440,520 8,100,064 4.2% 8,440,520 8,100,064 4.2%
Preferred - 219,781 (100.0)% - 219,781 (100.0)%
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, photodesk@prnewswire.com
CONTACT:
JoAnn McMinn, SVP, Investor Relations Officer
of Omega Financial Corporation, +1-814-231-5779
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