STATE COLLEGE, Pa., Oct. 24 /PRNewswire-FirstCall/ -- Continuing solid
performances in commercial and mortgage lending helped to offset ongoing
pressure on net interest margin for Omega Financial Corporation
(Nasdaq: OMEF). The existing rate environment has narrowed the margin that
Omega earns, resulting in 2003 year-to-date diluted earnings per share of
$1.49, compared to $1.57 for the same period last year. Diluted earnings per
share for this year's third quarter were $0.51, compared to $0.57 in 2002.
Year to date, common share dividends declared rose by 3.6% to $0.87 per share
from $0.84.
(Logo: http://www.newscom.com/cgi-bin/prnh/19990921/OMFCLOGO )
David B. Lee, Omega's chairman and chief executive officer, noted that the
company's average loans outstanding were up 2.5% for the year to date, despite
the sale of approximately $10 million in residential mortgage loans in the
second quarter. "In addition," he said, "our non-performing loans have been
reduced since the end of the second quarter, indicating that we continue to
retain high standards of loan quality throughout our portfolio. This has
allowed us to reduce our provision for loan loss expense. Reflecting the
company's ongoing drive to add product offerings that provide fee income, the
company's non-interest income rose by approximately 10% for the year to date,
excluding gains on loans and securities," Lee added.
"The company's net income for the year to date was $12.794 million,
compared to $13.608 million recorded in 2002. For the third quarter, net
income was $4.340 million, compared to $4.900 million for the same period in
2002," Lee said.
"The uneven pace of the economy, where we're seeing both positive and
negative signs at the same time, has continued to negatively impact our net
interest margin, as it has with other banks," he explained. The company's net
interest income for the quarter and year to date fell by $812,000 and
$1.459 million respectively. The net interest margin on a fully tax-equivalent
basis for the third quarter was 4.29% compared to 4.66% in third quarter 2002.
For the year to date 2003 net interest margin is 4.37%, compared to 4.57% for
the same period in 2002.
"Our challenge continues to be developing alternate revenue streams while
we aggressively pursue the core strategies of profitable traditional asset
growth," Lee said. "The economy is strengthening, albeit haltingly, and our
performances in loans are encouraging in that they denote a strong base to
build on as the economy rebounds."
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 Year to Date
2003 2002 % Change 2003 2002 % Change
Earnings:
Net income $4,340 $4,900 (11.4)% $12,794 $13,608 (6.0)%
Per share
statistics:
Diluted
earnings $.51 $.57 (10.5)% $1.49 $1.57 (5.1)%
Dividends
declared -
common .29 .28 3.6 .87 .84 3.6
Dividends
declared
- preferred .45 .45 -- 1.35 1.35 --
Book value
- common 20.02 19.36 3.4 20.02 19.36 3.4
Market value
- High 37.37 35.79 4.4 37.74 36.88 2.3
Low 32.92 32.85 0.2 31.25 30.02 4.1
Financial
position at
September 30:
Assets $1,152,161 $1,152,440 0.0% $1,152,161 $1,152,440 0.0%
Deposits 916,372 923,405 (0.8) 916,372 923,405 (0.8)
Net loans 784,751 779,810 0.6 784,751 779,810 0.6
Shareholders'
equity 165,097 160,043 3.2 165,097 160,043 3.2
Average
Balances:
Assets $1,155,957 $1,148,518 0.6% $1,147,324 $1,152,176 (0.4)%
Deposits 923,643 920,194 0.4 915,200 924,640 (1.0)
Net loans 775,708 770,584 0.7 778,577 759,874 2.5
Shareholders'
equity 167,057 161,715 3.3 166,016 159,838 3.9
Profitability
ratios -
annualized:*
Return on
average
assets 1.50% 1.71% (12.3)% 1.49% 1.57%(5.1)%
Return on
average
equity 10.39 12.12 (14.3) 10.28 11.35 (9.4)
Net interest
margin - fully
tax equivalent 4.29 4.66 (7.9) 4.37 4.57 (4.4)
Shares
outstanding at
September 30:*
Common 8,080,044 8,108,391 (0.3)% 8,080,044 8,108,391 (0.3)%
Preferred 219,781 219,781 -- 219,781 219,781 --
OMEGA FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except share data)
Unaudited
Three Months Ended Nine Months Ended
September 30, September 30,
2003 2002 2003 2002
Interest Income:
Interest and fees on
loans $11,716 $13,353 $36,238 $40,002
Interest and dividends
on investment securities 2,269 2,821 6,725 8,973
Other interest
income 42 64 264 314
TOTAL INTEREST INCOME 14,027 16,238 43,227 49,289
Interest Expense:
Interest on deposits 2,897 4,257 9,536 13,997
Interest on short-term
borrowings 68 184 265 574
Interest on long-term debt
and other interest bearing
liabilities 273 196 768 601
TOTAL INTEREST EXPENSE 3,238 4,637 10,569 15,172
NET INTEREST INCOME 10,789 11,601 32,658 34,117
Provision for loan
losses 100 150 350 630
INCOME FROM CREDIT
ACTIVITIES 10,689 11,451 32,308 33,487
Other Income:
Service fees on deposit
accounts 1,452 1,423 4,318 3,575
Service fees on loans 350 291 1,131 787
Earnings on bank-owned
life insurance 330 386 1,103 1,159
Trust fees 934 891 2,738 2,819
Gain (loss) on sale of
loans and other assets 2 5 281 68
Net gains on investment
securities 257 259 987 409
Other 829 786 2,477 2,367
TOTAL OTHER INCOME 4,154 4,041 13,035 11,184
Other Expense:
Salaries and employee
benefits 5,132 4,987 15,160 14,740
Net occupancy expense 587 564 1,773 1,690
Equipment expense 696 664 2,092 1,882
Data processing
service 431 420 1,271 1,246
Other 2,248 2,305 8,206 7,314
TOTAL OTHER EXPENSE 9,094 8,940 28,502 26,872
Income before taxes 5,749 6,552 16,841 17,799
Income tax expense 1,409 1,652 4,047 4,191
NET INCOME $4,340 $4,900 $12,794 $13,608
Net income per common share:
Basic $0.52 $0.59 $1.54 $1.62
Diluted $0.51 $0.57 $1.49 $1.57
Weighted average shares
and equivalents:
Basic 8,086,052 8,183,890 8,096,768 8,214,545
Diluted 8,517,424 8,627,913 8,529,741 8,651,377
Dividends declared per share:
Common $.29 $.28 $.87 $.84
Preferred $.45 $.45 $1.35 $1.35
OMEGA FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands)
Unaudited
September 30, December 31,
Assets 2003 2002
Cash and due from banks $36,987 $36,049
Interest bearing deposits with other
financial institutions 2,737 8,757
Federal funds sold - 33,900
Investment securities available for sale 270,606 251,508
Total loans 795,629 779,830
Less: Unearned discount (2) (11)
Allowance for loan losses (10,876) (11,052)
Net loans 784,751 768,767
Premises and equipment, net 14,243 14,719
Bank-owned life insurance 32,842 31,739
Other assets 9,995 9,118
TOTAL ASSETS $1,152,161 $1,154,557
Liabilities and Shareholders' Equity
Deposits:
Non-interest bearing $154,877 $148,498
Interest bearing 761,495 770,757
Total deposits 916,372 919,255
Short-term borrowings 33,212 41,452
Other liabilities 7,212 11,909
ESOP debt 2,601 2,832
Long-term debt 26,891 16,237
Other interest bearing liabilities 776 762
TOTAL LIABILITIES 987,064 992,447
TOTAL SHAREHOLDERS' EQUITY 165,097 162,110
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $1,152,161 $1,154,557
SOURCE Omega Financial Corporation
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Related links:
http://www.omegafinancial.com
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AP Archive: http://photoarchive.ap.org
PRN Photo Desk, 888-776-6555 or 212-782-2840
CONTACT:
JoAnn McMinn, SVP, Investor Relations Officer
of Omega Financial Corporation, +1-814-231-5779
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