STATE COLLEGE, Pa., July 21 /PRNewswire-FirstCall/ -- Despite strong
results in mortgage loans and commercial lending, a continuing pressure on net
interest margin resulted in Omega Financial Corporation (Nasdaq: OMEF)
reporting 2003 year-to-date diluted earnings per share of $0.99, a 1% decline
from the same period last year.
(Logo: http://www.newscom.com/cgi-bin/prnh/19990921/OMFCLOGO )
David B. Lee, Omega's chairman and chief executive officer, said that the
company's net income for the year to date was $8.454 million, compared to
$8.708 million reported for 2002. Common share dividends declared rose by 3.6%
to $0.58 per share from $0.56.
The company's second quarter net income was $4.232 million, compared to
$4.459 million for the same period in 2002, Lee said.
"Even though we have recorded strong performances in both new and
refinanced mortgages, along with commercial lending," he explained, "our net
interest margin, similar to other banks, remains under constant pressure in
this current rate environment. In addition, the general state of the regional
economy, including some significant job losses, has put a drag on consumer
lending demand."
Lee noted that the company showed an increase in outstanding mortgage
loans of $3.4 million since the end of last year after selling $10.1 million
to the secondary market, as well as a growth of $15.6 million in commercial
loan outstandings over the same period. Personal consumer loans, however,
declined by $14.3 million.
"As we have said before, a key element to enhance our core earning
strategies is to develop new revenue streams," he commented. "Our Omega
Investment Services Division, which initiated a major marketing campaign in
the first quarter, continued its drive to establish market presence in the
second quarter."
The division offers annuities, mutual funds, stocks, bonds and brokerage
services as well as life and long-term care insurance products.
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 follow.
OMEGA FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED FINANCIAL HIGHLIGHTS
(Unaudited)
(In thousands, except as indicated*)
For the Quarter Year to Date
2003 2002 % Change 2003 2002 % Change
Earnings:
Net income $4,232 $4,459 (5.1)% $8,454 $8,708 (2.9)%
Per share
statistics: *
Diluted earnings $.49 $.51 (3.9)% $.99 $1.00 (1.0)%
Dividends declared
- common .29 .28 3.6 .58 .56 3.6
Dividends declared
- preferred .45 .45 -- .90 .90 --
Book value
- common 19.95 19.13 4.3 19.95 19.13 4.3
Market value
- High 37.74 36.88 2.3 37.74 36.88 2.3
Low 32.80 32.50 0.9 31.25 30.02 4.1
Financial position
at June 30:
Assets $1,170,727 $1,163,437 0.6% $1,170,727 $1,163,437 0.6%
Deposits 926,360 932,887 (0.7) 926,360 932,887 (0.7)
Net loans 773,647 765,955 1.0 773,647 765,955 1.0
Shareholders'
equity 164,815 159,767 3.2 164,815 159,767 3.2
Average Balances:
Assets $1,148,424 $1,159,314 (0.9)% $1,142,934 $1,154,038 (1.0)%
Deposits 917,235 930,881 (1.5) 910,907 926,899 (1.7)
Net loans 780,321 762,482 2.3 780,033 754,429 3.4
Shareholders'
equity 166,215 159,104 4.5 165,487 158,886 4.2
Profitability
ratios -
annualized: *
Return on
average
assets 1.47% 1.54% (4.5)% 1.48% 1.51% (2.0)%
Return on average
equity 10.18 11.21 (9.2) 10.22 10.96 (6.8)
Net interest
margin -
fully tax
equivalent 4.35 4.55 (4.4) 4.39 4.52 (2.9)
Shares
outstanding
at June 30: *
Common 8,100,064 8,195,130 (1.2)% 8,100,064 8,195,130 (1.2)%
Preferred 219,781 19,781 -- 219,781 219,781 --
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,
2003 2002 2003 2002
Interest Income:
Interest and fees
on loans $12,200 $13,294 $24,522 $26,649
Interest and dividends
on investment
securities 2,132 3,050 4,456 6,152
Other interest income 125 80 222 250
TOTAL INTEREST INCOME 14,457 16,424 29,200 33,051
Interest Expense:
Interest on deposits 3,235 4,641 6,639 9,740
Interest on short-term
borrowings 74 199 197 390
Interest on long-term
debt and other interest
bearing liabilities 279 200 495 405
TOTAL INTEREST EXPENSE 3,588 5,040 7,331 10,535
NET INTEREST INCOME 10,869 11,384 21,869 22,516
Provision for loan losses 150 250 250 480
INCOME FROM CREDIT
ACTIVITIES 10,719 11,134 21,619 22,036
Other Income:
Service fees on deposit
accounts 1,462 1,171 2,866 2,152
Service fees on loans 379 224 781 496
Earnings on bank-owned
life insurance 387 384 773 773
Trust fees 912 877 1,804 1,928
Brokerage fees 173 283
Gain on sale of loans
and other assets 275 (1) 279 63
Net gains on investment
securities 699 58 730 150
Other 698 815 1,365 1,581
TOTAL OTHER INCOME 4,985 3,528 8,881 7,143
Other Expense:
Salaries and employee
benefits 5,089 4,869 10,028 9,753
Net occupancy expense 556 566 1,186 1,126
Equipment expense 681 648 1,396 1,218
Data processing service 421 419 840 826
Other 3,285 2,486 5,958 5,009
TOTAL OTHER EXPENSE 10,032 8,988 19,408 17,932
Income before taxes 5,672 5,674 11,092 11,247
Income tax expense 1,440 1,215 2,638 2,539
NET INCOME $4,232 $4,459 $8,454 $8,708
Net income per
common share:
Basic $.51 $.53 $1.02 $1.03
Diluted $.49 $.51 $0.99 $1.00
Weighted average shares
and equivalents:
Basic 8,103,453 8,226,527 8,102,215 8,230,127
Diluted 8,541,569 8,867,300 8,531,939 8,676,669
Dividends declared
per share:
Common $.29 $.28 $.58 $.56
Preferred $.45 $.45 $.90 $.90
OMEGA FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands)
Unaudited
June 30, December 31,
Assets 2003 2002
Cash and due from banks $40,779 $36,049
Interest bearing deposits with other
financial institutions 19,919 8,757
Federal funds sold 13,550 33,900
Investment securities available for sale 266,834 251,508
Total loans 784,631 779,830
Less: Unearned discount (4) (11)
Allowance for loan losses (10,980) (11,052)
Net loans 773,647 768,767
Premises and equipment, net 14,473 14,719
Bank-owned life insurance 32,512 31,739
Other assets 9,013 9,118
TOTAL ASSETS $1,170,727 $1,154,557
Liabilities and Shareholders' Equity
Deposits:
Non-interest bearing $153,516 $148,498
Interest bearing 772,844 770,757
Total deposits 926,360 919,255
Short-term borrowings 26,151 41,452
Other liabilities 22,761 11,909
ESOP debt 2,679 2,832
Long-term debt 27,177 16,237
Other interest bearing liabilities 784 762
TOTAL LIABILITIES 1,005,912 992,447
TOTAL SHAREHOLDERS' EQUITY 164,815 162,110
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 1,170,727 $ 1,154,557
SOURCE Omega Financial Corporation
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