STATE COLLEGE, Pa., Nov. 5 /PRNewswire-FirstCall/ -- Omega Financial
Corporation (Nasdaq: OMEF) reported third quarter 2004 net income of
$3.552 million, a reduction of $788,000, or 18.2%, when compared to the same
period last year, company officials said. Diluted earnings per share are $0.42
for the quarter as compared to $0.51 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 )
"A consistent factor exerting considerable pressure on our earnings
throughout the year has been the declining interest rate margin," Lee said,
noting that the margin has shrunk by 9.3% for the quarter and 8.7% for the
year to date. He attributed the declining margin to the low-rate environment
that has predominated throughout the year. In addition, the company's gains on
securities for the quarter fell significantly from the third quarter of 2003,
falling 76.7%.
For the year to date, the company's net income is $ $11.087 million
compared to $12.794 million for 2003. Per share diluted earnings are $1.30,
compared to $1.49 for last year. Omega's common share dividends declared are
up 3.4% to $0.90 from $0.87, Lee said.
In spite of increased operating costs during the quarter due to activities
related to Omega Financial's acquisition of Sun Bancorp, the company's non-
interest expense for the year to date have fallen by 4.1%. Lee credited that
figure to the company's continuing effort to control overall operating costs
while pursuing new product and marketplace opportunities. The Sun transaction,
which was consummated on October 1, 2004, should add to Omega's earnings per
share by the end of the first full year of combined operations.
"As we continue to control our operating costs, we are enhancing our non-
traditional products as a means of fostering more total relationships with
existing and potential customers," Lee said.
With the completion of the Sun acquisition, the company now serves 13
Pennsylvania counties through Omega Bank and its divisions Sun Bank and
Guaranty Bank. The acquisition expanded Omega's market presence to 67 Offices
in Bedford, Blair, Centre, Clinton, Dauphin, Huntingdon, Juniata, Luzerne,
Lycoming, Mifflin, Northumberland, Snyder and Union counties. Omega recently
opened a new Asset Management and Trust facility in Bedford County.
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.
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) adverse
governmental or regulatory policies may be enacted; (5) changes in the
interest rate environment reduces interest margins; (6) general economic
conditions, either nationally or in the states in which the combined company
will be doing business, are less favorable than expected; (7) legislation or
regulatory requirements or changes adversely affect the business in which the
combined company will be engaged; and (8) changes may occur in the securities
market.
OMEGA FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands)
Unaudited
September 30, December 31,
Assets 2004 2003
Cash and due from banks $31,822 $32,420
Funds held in escrow 35,979 -
Interest bearing deposits with other
financial institutions 23,338 10,682
Federal funds sold 10,100 17,850
Investment securities available for sale 255,705 240,539
Investment in unconsolidated subsidiary 1,114 -
Total loans 772,403 788,144
Less: Allowance for loan losses (9,707) (10,569)
Net loans 762,696 777,575
Premises and equipment, net 13,858 14,348
Bank-owned life insurance 38,137 37,134
Other assets 12,349 9,618
TOTAL ASSETS $ 1,185,098 $ 1,140,166
Liabilities and Shareholders' Equity
Deposits:
Non-interest bearing $163,023 $155,702
Interest bearing 752,038 751,878
Total deposits 915,061 907,580
Short-term borrowings 28,796 33,263
ESOP debt 2,277 2,521
Junior subordinated debt 37,114 -
Long-term debt 25,700 21,600
Other interest bearing liabilities 823 813
Other liabilities 6,308 6,950
TOTAL LIABILITIES 1,016,079 972,727
TOTAL SHAREHOLDERS' EQUITY 169,019 167,439
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 1,185,098 $ 1,140,166
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,
2004 2003 2004 2003
Interest Income:
Interest and fees
on loans $10,987 $11,716 $33,179 $36,238
Interest and dividends
on investment
securities 1,774 2,269 5,386 6,725
Other interest income 158 42 305 264
TOTAL INTEREST INCOME 12,919 14,027 38,870 43,227
Interest Expense:
Interest on deposits 2,738 2,897 8,073 9,536
Interest on short-term
borrowings 151 68 299 265
Interest on long-term
debt and other interest
bearing liabilities 257 273 749 768
TOTAL INTEREST EXPENSE 3,146 3,238 9,121 10,569
NET INTEREST INCOME 9,773 10,789 29,749 32,658
Provision for
loan losses 100 350
INCOME FROM CREDIT
ACTIVITIES 9,773 10,689 29,749 32,308
Other Income:
Service fees on
deposit accounts 1,652 1,452 4,568 4,318
Service fees on loans 232 350 879 1,131
Earnings on bank-owned
life insurance 319 330 1,003 1,103
Trust fees 790 934 2,589 2,738
Gain (loss) on sale
of loans and other assets 12 2 13 281
Net gains on
investment securities 60 257 271 987
Other 853 829 2,617 2,477
TOTAL OTHER INCOME 3,918 4,154 11,940 13,035
Other Expense:
Salaries and
employee benefits 4,938 5,132 14,695 15,160
Net occupancy expense 547 587 1,733 1,773
Equipment expense 706 696 2,137 2,092
Data processing service 439 431 1,292 1,271
Other 2,415 2,248 7,465 8,206
TOTAL OTHER EXPENSE 9,045 9,094 27,322 28,502
Income before taxes 4,646 5,749 14,367 16,841
Income tax expense 1,094 1,409 3,280 4,047
NET INCOME $3,552 $4,340 $11,087 $12,794
Net income per common
share:
Basic $0.42 $0.52 $1.31 $1.54
Diluted $0.42 $0.51 $1.30 $1.49
Weighted average shares
and equivalents:
Basic 8,443,429 8,086,052 8,461,174 8,096,768
Diluted 8,500,451 8,517,424 8,530,007 8,529,741
Dividends declared
per share:
Common $.30 $.29 $.90 $.87
Preferred $.45 $1.35
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 $ 3,552 $ 4,340 (18.2)% $11,087 $12,794 (13.3)%
Per share statistics: *
Diluted
earnings $.42 $.51 (17.6)% $1.30 $1.49 (12.8)%
Dividends
declared
- common .30 .29 3.4 .90 .87 3.4
Dividends
declared
- preferred - .45 (100.0) - 1.35 (100.0)
Book value -
common 20.01 20.02 0.0 20.01 20.02 0.0
Market value
- High 35.31 37.37 (5.5) 38.75 37.74 2.7
Low 29.13 32.92 (11.5) 29.13 31.25 (6.8)
Financial position
at September 30:
Assets $1,185,098 $1,152,161 2.9% $1,185,098 $1,152,161 2.9%
Deposits 915,061 916,372 (0.1) 915,061 916,372 (0.1)
Net loans 762,696 784,751 (2.8) 762,696 784,751 (2.8)
Shareholders'
equity 169,019 165,097 2.4 169,019 165,097 2.4
Average Balances:
Assets $1,151,734 $1,155,957 (0.4)% $1,139,712 $1,147,324 (0.7)%
Deposits 919,926 923,643 (0.4) 908,171 915,200 (0.8)
Net loans 762,735 775,708 (1.7) 770,630 778,577 (1.0)
Shareholders'
equity 168,896 167,057 1.1 170,003 166,016 2.4
Profitability ratios - annualized: *
Return on average
assets 1.23% 1.50% (18.0)% 1.30% 1.49% (12.8)%
Return on
average
equity 8.41 10.39 (19.1) 8.70 10.28 (15.4)
Net interest
margin - fully
tax
equivalent 3.89 4.29 (9.3) 3.99 4.37 (8.7)
Shares outstanding
at September 30: *
Common 8,444,941 8,080,044 4.5% 8,444,941 8,080,044 4.5%
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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