STATE COLLEGE, Pa., July 22 /PRNewswire-FirstCall/ -- Year to date
earnings for Omega Financial Corporation (Nasdaq: OMEF) have risen by nearly
60% over those of 2004, company officials said.
Omega recorded net income of $11.958 million for the first six months of
the year, compared to $7.535 million for the same period last year, according
to David B. Lee, Omega's chairman and chief executive officer. The company's
net income in the second quarter was 36.9% higher than the same quarter last
year, rising to $5.381 million from $3.931 million.
Lee noted that the fact that Omega's acquisition of Sun Bancorp did not
close until the fourth quarter of last year makes comparing 2005's first and
second quarter results useful in analyzing Omega's second quarter performance
in several categories. The acquisition doubled Omega's assets to approximately
$2 billion and added new markets in Central and Northeastern Pennsylvania. The
company now has 68 Omega Bank offices in 14 counties.
Omega's per share fully diluted earnings were $0.95 for the year to date,
an 8% increase over the $0.88 recorded in 2004. For the quarter, fully diluted
earnings were $0.43, compared to $0.46 in the second quarter of 2004.
Although net income for the second quarter of 2005 when compared to the
first quarter of this year decreased by about 18%, Lee explained the decrease
is largely attributable to steps Omega took in the first quarter to
restructure its balance sheet, specifically debt extinguishment as well as
sales of investment securities and loans. The restructuring added net gains of
approximately $1.7 million before taxes to results in the first quarter.
"As we have acquired new markets, we have also added new expenses, Lee
said. "We are confident, however, that our focus on profitable loan growth
combined with expense control will continue to serve us well as we take
advantage of new business opportunities in these markets." Although non-
interest expenses in the second quarter exceeded the previous quarter by 4.6%,
for the year-to-date, non-interest expenses for the new combined entity are
lower than projected, indicating our planned cost containment program is
effective.
Common share dividends declared rose 3.3% for both the quarter and the
year to date. Return on Average Assets (ROA) was 1.07% for the quarter
compared to 1.38% for the same period last year. The company's net interest
income increased by approximately 1% in the second quarter compared to the
first quarter of this year, while total deposits increased by $9.2 million
since year end 2004.
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*)
Three Months Ended June 30, Six Months Ended June 30,
2005 2004 % Change 2005 2004 % Change
Earnings:
Net income $5,381 $3,931 36.9% $1,958 $7,535 58.7%
Per share statistics: *
Diluted earnings $.43 $.46 (6.5)% $.95 $.88 8.0%
Dividends declared
- common .31 .30 3.3 .62 .60 3.3
Book value
- common 25.25 19.73 28.0 25.25 19.73 28.0
Book value
- tangible 11.69 19.72 (40.7) 11.69 19.72 (40.7)
Market value
- High 31.54 37.97 (16.9) 34.50 38.75 (11.0)
Low 27.05 29.21 (7.4) 27.05 29.21 (7.4)
Financial position
at period end:
Assets $1,993,745 $1,149,870 73.4% $1,993,745 $1,149,870 73.4%
Net loans 1,238,548 763,603 62.2 1,238,548 763,603 62.2
Deposits 1,511,334 916,658 64.9 1,511,334 916,658 64.9
Shareholders'
equity 318,329 166,518 91.2 318,329 166,516 91.2
Average Balances:
Assets $2,003,840 $1,141,139 75.6% $2,025,803 $1,133,632 78.7%
Net loans 1,271,512 780,948 62.8 1,292,943 785,082 64.7
Deposits 1,515,209 911,057 66.3 1,506,197 902,229 66.9
Shareholders'
equity 319,986 171,168 86.9 319,292 170,565 87.2
Profitability ratios
- annualized: *
Return on
average
assets 1.07% 1.38%(22.0)% 1.18% 1.33%(11.2)%
Return on
average
tangible
equity(1) 14.47 9.19 57.5 16.28 8.84 84.2
Return on
average
stated
equity (2) 6.73 9.19 (26.8) 7.49 8.84 (15.2)
Net interest
margin -
fully tax
equivalent 3.90 3.98 (2.0) 3.84 4.06 (5.4)
Shares
outstanding
at period end: *
Common 12,609,174 8,440,520 49.4% 12,609,174 8,440,520 49.4%
(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 BALANCE SHEETS
(In thousands, except share data)
June 30, December 31,
Assets 2005 2004
Cash and due from banks $54,152 $47,877
Interest bearing deposits with other banks 25,153 31,122
Federal funds sold 30,325 36,350
Trading account assets 469 -
Investment securities available for sale 322,018 327,979
Investment in unconsolidated subsidiary 1,625 1,625
Loans available for sale 306 22,515
Total portfolio loans 1,253,546 1,305,735
Less: Allowance for loan losses (15,304) (15,644)
Net portfolio loans 1,238,242 1,290,091
Premises and equipment, net 37,145 35,509
Other real estate owned 905 3,082
Bank-owned life insurance 73,993 72,845
Investment in limited partnerships 7,089 8,605
Core deposit intangibles 7,142 13,927
Other intangibles 2,664 2,799
Goodwill 161,135 156,959
Other assets 31,382 31,286
TOTAL ASSETS $ 1,993,745 $ 2,082,571
Liabilities and Shareholders' Equity
Deposits:
Non-interest bearing $235,599 $228,408
Interest bearing 1,275,735 1,273,674
Total deposits 1,511,334 1,502,082
Short-term borrowings 55,664 90,259
ESOP debt 2,021 2,192
Junior subordinated debentures 56,941 57,190
Long-term debt 32,000 99,579
Other interest bearing liabilities 842 854
Other liabilities 16,614 14,676
TOTAL LIABILITIES 1,675,416 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 - 12,621,720 shares;
Outstanding-
12,609,174 shares at June 30, 2005;
12,593,524 shares at December 31, 2004 63,125 62,968
Capital surplus 98,982 98,370
Retained earnings 156,410 152,249
Accumulated other comprehensive income 1,444 3,526
Unearned compensation related to ESOP debt (1,252) (1,374)
Cost of common stock in treasury:
12,546 shares at June 30, 2005 (380) -
TOTAL SHAREHOLDERS' EQUITY 318,329 315,739
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 1,993,745 $ 2,082,571
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,
2005 2004 2005 2004
Interest Income:
Interest and fees on
loans $19,612 $10,995 $38,959 $22,192
Interest and dividends
on investment
securities 2,689 1,759 5,056 3,612
Other interest income 338 91 696 147
TOTAL INTEREST INCOME 22,639 12,845 44,711 25,951
Interest Expense:
Interest on deposits 5,559 2,643 10,251 5,335
Interest on short-term
borrowings 438 72 928 148
Interest on long-term
debt and other interest
bearing liabilities 1,292 244 2,940 492
TOTAL INTEREST EXPENSE 7,289 2,959 14,119 5,975
NET INTEREST INCOME 15,350 9,886 30,592 19,976
Provision for loan losses 180 - 322 -
INCOME FROM CREDIT
ACTIVITIES 15,170 9,886 30,270 19,976
Other Income:
Service fees on deposit
accounts 2,308 1,577 4,448 2,916
Service fees on loans 345 366 657 647
Earnings on bank-owned
life insurance 574 330 1,149 684
Trust fees 1,476 884 3,142 1,799
Investment and insurance
product sales 779 353 1,851 655
Gain on the early
extinguishment of debt - - 1,043 -
Loss on sale of loans
and other assets (39) 2 (378) 1
Net gains on the sale of
investment securities 549 203 1,537 211
Other 1,149 569 2,178 1,109
TOTAL OTHER INCOME 7,141 4,284 15,627 8,022
Other Expense:
Salaries and employee
benefits 7,721 4,802 15,272 9,757
Net occupancy expense 1,064 559 2,175 1,186
Equipment expense 1,031 729 2,120 1,431
Data processing service 621 430 1,247 853
Pennsylvania shares tax 549 379 1,168 763
Amortization of
intangible assets 274 2 437 5
Other 4,403 2,143 8,213 4,282
TOTAL OTHER EXPENSE 15,663 9,044 30,632 18,277
Income before taxes 6,648 5,126 15,265 9,721
Income tax expense 1,267 1,195 3,307 2,186
NET INCOME $5,381 $3,931 $11,958 $7,535
Net income per common share:
Basic $.43 $.46 $0.95 $0.89
Diluted $.43 $.46 $0.95 $0.88
Weighted average shares
and equivalents:
Basic 12,607 8,469 12,601 8,740
Diluted 12,660 8,533 12,659 8,546
Dividends declared
per share:
Common $.31 $.30 $.62 $.60
OMEGA FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except share data)
Unaudited
Second Quarter First Quarter
2005 2005
Interest Income:
Interest and fees on loans$ 19,612 $19,347
Interest and dividends on investment
securities 2,689 2,367
Other interest income 338 358
TOTAL INTEREST INCOME 22,639 22,072
Interest Expense:
Interest on deposits 5,559 4,692
Interest on short-term borrowings 438 490
Interest on long-term debt and
other interest bearing liabilities 1,292 1,648
TOTAL INTEREST EXPENSE 7,289 6,830
NET INTEREST INCOME 15,350 15,242
Provision (credit) for loan losses 180 142
INCOME FROM CREDIT ACTIVITIES 15,170 15,100
Other Income:
Service fees on deposit accounts 2,308 2,140
Service fees on loans 345 312
Earnings on bank-owned life insurance 574 575
Trust fees 1,476 1,666
Investment and insurance product sales 779 1,072
Gain on the early extinguishment of debt - 1,043
Gain on sale of loans and other assets (39) (339)
Net gains on the sale of investment
securities 549 988
Other 1,149 1,029
TOTAL OTHER INCOME 7,141 8,486
Other Expense:
Salaries and employee benefits 7,721 7,551
Net occupancy expense 1,064 1,111
Equipment expense 1,031 1,089
Data processing service 621 626
Pennsylvania shares tax 549 619
Amortization of intangible assets 274 163
Other 4,403 3,810
TOTAL OTHER EXPENSE 15,663 14,969
Income before taxes 6,648 8,617
Income tax expense 1,267 2,040
NET INCOME $5,381 $6,577
Net income per common share:
Basic $0.43 $0.52
Diluted $0.43 $0.52
Weighted average shares and equivalents:
Basic 12,607 12,596
Diluted 12,660 12,659
Dividends declared per share:
Common $.31 $.31
SOURCE Omega Financial Corporation
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Related links:
http://www.omegafinancial.com
CONTACT:
JoAnn McMinn, SVP, Director of Investor
Relations of Omega Financial Corporation, +1-814-231-5779
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