STATE COLLEGE, Pa., Oct. 28 /PRNewswire-FirstCall/ -- Omega Financial
Corporation (Nasdaq: OMEF) earnings for both the third quarter and year-to-
date 2005 increased almost 60%, according to company officials.
The company, which is the parent firm of Omega Bank, posted net income of
$5.565 million and $17.523 million for the third quarter and year to date,
respectively, according to David B. Lee, chairman and chief executive officer.
The quarterly net income represents a 56.7% increase over the same period last
year, while year to date earnings are up 58%.
On a per-share basis, fully diluted earnings for the third quarter were
$0.44, a 4.8% rise, while year to date per share diluted earnings were $1.38,
which is 6.2% greater than 2004. Common share dividends declared rose 3.33%
for both the quarter and the year to date.
Lee noted that an increase in net interest margin coupled with
enhancements in non-interest income and a decrease in non-interest expense
were the primary factors in Omega's results.
"In spite of a challenging interest rate environment and essentially flat
yields, our net interest margin for the third quarter rose by 2.6% over last
year's third quarter and was also 2.3% greater than the second quarter of this
year," Lee said. Omega's net interest margin on a fully tax equivalent basis
was 3.99% for the third quarter, compared to 3.89% for the same period last
year and 3.90% for the second quarter of 2005.
The firm's non interest income rose by 2% in the third quarter of 2005
compared to the second quarter of this year. Lee attributed the gains to
increased revenue from asset management and trust, deposit services and bank
card revenue.
Omega is well ahead of projected operational savings from last year's
acquisition of Sun Bancorp of Lewisburg, Lee said. The acquisition of Sun was
effective October 1 of 2004. Non interest expenses fell by 3% in the third
quarter compared to the previous quarter, he added, reflecting the
productivity of the company's employees and a commitment to controlling costs.
Despite the focus on containing costs, Omega has continued to innovate
with new products, such as Home Equity VISA cards to offer customers a
combination of credit-card convenience with the low-rate and interest
deduction possibility of a traditional home equity line. Another new product
offering is the Health Savings Account, translating recent legislation into
opportunities for customer acquisition and development. Omega Bank has a Top 5
market share in 10 of the 14 counties where the bank has offices. In addition,
the bank has a Top 5 market share in three of the five Metropolitan
Statistical Areas (MSAs) in which the bank does business.
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 Nine Months Ended
September 30, September 30,
% %
2005 2004 Change 2005 2004 Change
Earnings:
Net income $5,565 $3,552 56.7% $17,523 $11,087 58.0%
Per share
statistics: *
Diluted earnings $.44 $.42 4.8% $1.38 $1.30 6.2%
Dividends declared
- common .31 .30 3.3 .93 .90 3.3
Book value
- common 25.25 20.01 26.3 25.25 20.01 26.3
Book value
- tangible 11.73 20.01 (41.3) 11.73 20.01 (41.3)
Market value
- High 33.50 35.31 (5.1) 34.50 38.75 (11.0)
Low 26.55 29.13 (8.9) 32.22 29.13 10.6
Financial position
at period end:
Assets $1,971,830 $1,185,098 66.4% $1,971,830 $1,185,098 66.4%
Net loans 1,215,471 762,696 59.4 1,215,471 762,696 59.4
Deposits 1,447,850 915,061 58.2 1,447,850 915,061 58.2
Shareholders'
equity 318,540 169,019 88.5 318,540 169,019 88.5
Average Balances:
Assets $1,989,655 $1,151,734 72.8% $2,013,623 $1,139,712 76.7%
Net loans 1,228,200 762,735 61.0 1,260,896 770,630 63.6
Deposits 1,496,702 919,926 62.7 1,502,997 908,171 65.5
Shareholders'
equity 322,500 168,896 90.9 320,372 170,003 88.5
Profitability
ratios -
annualized: *
Return on
average assets 1.12% 1.23% (9.3)% 1.16% 1.30% (10.8)%
Return on average
tangible
assets (1) 1.22 1.23 (0.8) 1.27 1.30 (2.3)
Return on average
stated equity 6.90 8.41 (17.9) 7.29 8.70 (16.2)
Return on average
tangible
equity (2) 14.68 8.41 74.6 15.73 8.70 80.8
Net interest
margin - fully
tax equivalent 3.99 3.89 2.6 3.88 3.99 (2.8)
Shares outstanding
at period end: *
Common 12,609,546 8,444,941 49.6% 12,609,546 8,444,941 49.6%
(1) Average tangible assets represents average assets less average
intangibles and goodwill.
(2) Average tangible equity represents average shareholders' equity less
average intangibles and goodwill.
OMEGA FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)
September 30, December 31,
Assets 2005 2004
Cash and due from banks $57,945 $47,877
Interest bearing deposits with other banks 6,981 31,122
Federal funds sold - 36,350
Trading account assets 464 -
Investment securities available for sale 367,330 327,979
Investment in unconsolidated subsidiary 1,625 1,625
Loans available for sale 217 22,515
Total portfolio loans 1,230,679 1,305,735
Less: Allowance for loan losses (15,208) (15,644)
Net portfolio loans 1,215,471 1,290,091
Premises and equipment, net 38,176 35,509
Other real estate owned 852 3,082
Bank-owned life insurance 74,565 72,845
Investment in limited partnerships 6,854 8,605
Core deposit intangibles 6,935 13,927
Other intangibles 2,597 2,799
Goodwill 161,142 156,959
Other assets 30,676 31,286
TOTAL ASSETS $1,971,830 $2,082,571
Liabilities and Shareholders' Equity
Deposits:
Non-interest bearing $237,853 $228,408
Interest bearing 1,209,997 1,273,674
Total deposits 1,447,850 1,502,082
Short-term borrowings 107,798 90,259
ESOP debt 1,933 2,192
Junior subordinated debentures 56,816 57,190
Long-term debt 26,614 99,579
Other interest bearing liabilities 852 854
Other liabilities 11,427 14,676
TOTAL LIABILITIES 1,653,290 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 -
12,643,861 shares at September 30, 2005;
12,593,524 shares at December 31, 2004;
Outstanding-
12,609,546 shares at September 30, 2005;
12,593,524 shares at December 31, 2004 63,235 62,968
Capital surplus 99,399 98,370
Retained earnings 158,076 152,249
Accumulated other comprehensive income 27 3,526
Unearned compensation related to ESOP debt (1,188) (1,374)
Cost of common stock in treasury: 34,315 shares
at September 30, 2005 (1,009) -
TOTAL SHAREHOLDERS' EQUITY 318,540 315,739
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $1,971,830 $2,082,571
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,
2005 2004 2005 2004
Interest Income:
Interest and fees on loans $19,887 $10,926 $58,846 $33,118
Interest and dividends on
investment securities 2,975 1,774 8,031 5,386
Other interest income 288 158 984 305
TOTAL INTEREST INCOME 23,150 12,858 67,861 38,809
Interest Expense:
Interest on deposits 5,754 2,738 16,005 8,073
Interest on short-term borrowings 576 151 1,504 299
Interest on long-term debt and
other interest bearing
liabilities 1,211 196 4,151 688
TOTAL INTEREST EXPENSE 7,541 3,085 21,660 9,060
NET INTEREST INCOME 15,609 9,773 46,201 29,749
Provision for loan losses 290 - 612 -
INCOME FROM CREDIT ACTIVITIES 15,319 9,773 45,589 29,749
Other Income:
Service fees on deposit accounts 2,409 1,652 6,857 4,568
Service fees on loans 332 232 989 879
Earnings on bank-owned life
insurance 571 319 1,720 1003
Trust fees 1,541 790 4,683 2,589
Investment and insurance
product sales 649 271 2,500 926
Gain on the early extinguishment
of debt - - 1,043 -
(Loss) Gain on sale of loans
and other assets (1) 12 (379) 13
Net gains on the sale of
investment securities 134 60 1,671 271
Other 1,263 582 3,441 1,691
TOTAL OTHER INCOME 6,898 3,918 22,525 11,940
Other Expense:
Salaries and employee benefits 7,720 4,938 22,992 14,695
Net occupancy expense 948 547 3,123 1,733
Equipment expense 1,040 706 3,160 2,137
Data processing service 632 439 1,879 1,292
Pennsylvania shares tax 107 380 1,275 1,143
Amortization of intangible
assets 274 3 711 8
Other 4,471 2,032 12,684 6,314
TOTAL OTHER EXPENSE 15,192 9,045 45,824 27,322
Income before taxes 7,025 4,646 22,290 14,367
Income tax expense 1,460 1,094 4,767 3,280
NET INCOME $5,565 $3,552 $17,523 $11,087
Net income per common share:
Basic $.44 $.42 $1.39 $1.31
Diluted $.44 $.42 $1.38 $1.30
Weighted average shares and
equivalents:
Basic 12,616 8,443 12,606 8,461
Diluted 12,666 8,500 12,658 8,530
Dividends declared per share:
Common $.31 $.30 $.93 $.90
OMEGA FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except share data)
Unaudited
Qtr 3 Qtr 2
2005 2005
Interest Income:
Interest and fees on loans $19,887 $19,612
Interest and dividends on investment securities 2,975 2,689
Other interest income 288 338
TOTAL INTEREST INCOME 23,150 22,639
Interest Expense:
Interest on deposits 5,754 5,559
Interest on short-term borrowings 576 438
Interest on long-term debt and
other interest bearing liabilities 1,211 1,292
TOTAL INTEREST EXPENSE 7,541 7,289
NET INTEREST INCOME 15,609 15,350
Provision for loan losses 290 180
INCOME FROM CREDIT ACTIVITIES 15,315 15,170
Other Income:
Service fees on deposit accounts 2,409 2,308
Service fees on loans 332 345
Earnings on bank-owned life insurance 571 574
Trust fees 1,541 1,476
Investment and insurance product sales 649 779
Gain on the early extinguishment of debt -
Gain(Loss) on sale of loans and other assets (1) (39)
Net gains on the sale of investment securities 134 549
Other 1,263 1,149
TOTAL OTHER INCOME 6,898 7,141
Other Expense:
Salaries and employee benefits 7,720 7,721
Net occupancy expense 948 1,064
Equipment expense 1,040 1,031
Data processing service 632 621
Pennsylvania shares tax 107 549
Amortization of intangible assets 274 274
Other 4,471 4,403
TOTAL OTHER EXPENSE 15,192 15,663
Income before taxes 7,025 6,648
Income tax expense 1,460 1,267
NET INCOME $5,565 $5,381
Net income per common share:
Basic $0.44 $0.43
Diluted $0.44 $0.43
Weighted average shares and equivalents:
Basic 12,616 12,607
Diluted 12,666 12,660
Dividends declared per share:
Common $.31 $.31
SOURCE Omega Financial Corporation
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Related links:
http://www.omegafinancial.com
CONTACT:
Teresa Ciambotti, SVP, Director of Investor
Relations of Omega Financial Corporation, +1-814-231-6401
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