Alliance Financial Reports First Quarter Earnings

Apr 20, 2001, 01:00 ET from Alliance Financial Corporation

    CORTLAND, N.Y. and ONEIDA, N.Y., April 20 /PRNewswire Interactive News
 Release/ -- Alliance Financial Corporation (Nasdaq:   ALNC) announced today that
 net income for the quarter ended March 31, 2001 was $1.2 million with earnings
 per share of $0.32.  This compares to net income of $1.3 million and earnings
 per share of $0.38 for the same period in 2000.
     John C. Mott, Chairman of Alliance Financial Corporation said, "We are
 extremely pleased with the continued growth that has resulted from our plans
 to expand our banking subsidiary.  In the past twelve months, loans that have
 grown $47 million, or 17%, have generated increased revenue, which when
 combined with strong security gains this quarter, have significantly offset
 our new branch start-up costs and overhead expenses as well as the higher
 interest expense associated with our deposit growth.  When comparing March 31,
 2001 to last year's first quarter-end, the Company's assets have increased
 more than 13%, to $619 million, and deposits have grown nearly $41 million, or
 8.8%.  Our momentum is building, and we believe that the growth of our
 expanded service area and customer base positions us well to improve our
 profits and provide greater value for our shareholders."
     Interest income for the first quarter of 2001 was $10.6 million, up 14%
 compared with the same period last year.  The increase was primarily
 associated with the significant growth in the Company's loan portfolio.
 Interest expense was up 35% to $5.6 million, reflecting both the growth in, as
 well as the higher rates paid on deposits.  Net interest income as a result,
 declined 3% to $5 million.  The Company increased its provision for loan loss
 expense for this year's first quarter to $590,000 in connection with the
 significant loan growth.
     Non interest income for the quarter ended March 31, 2001 was $2.0 million,
 up 51.4%, when compared to the quarter ended March 31, 2000.  Contributing to
 this increase were gains of $621,000 on the sales of securities that had been
 purchased in 2000.  The Company also reported a substantial increase in income
 from service charge on deposits, which rose 27.2%, to $580,000.
     Non interest expense in the amount of $4.9 million, which increased 12.2%,
 for the comparable periods, was principally impacted by a 15.7% increase in
 salary and benefits expense.  Much of the increase in salaries and benefits
 expense resulted from the Company's planned expansion of its staff that is
 serving its growing market. In the past year, the Company has opened and
 staffed three new offices in the Syracuse market area.  Associated with the
 development of the new branches, occupancy and equipment expense increased
 13.8%, when comparing the current quarter with the comparable prior year
 period.  Other operating expenses were up 3%.
     As of March 31, 2001, total assets were $619 million, increasing
 $74 million or 13.5%, compared to March 31, 2000.  For the comparable periods,
 loans were up $47 million, or 17%, with significant growth in the Company's
 consumer portfolio, up $26 million, or 38.5%, and the commercial portfolio, up
 $15 million, or 14.9%.  Investment securities increased $12 million, or 5.5%,
 when comparing the same periods, to $226 million at March 31, 2001.
 Non-performing assets as a percent of total assets were at 0.22% on March 31,
 2001, compared to 0.21% on March 31, 2000, and continued to remain stable at a
 relatively low rate, while the ratio of the allowance for loan losses to total
 loans was 1.12% compared to 1.25% for the same periods.  At the end of the
 first quarter of 2001, deposits of $507 million had increased $41 million, or
 8.8% compared to the prior year first quarter-end.  The majority of the growth
 resulted from increases in time deposits from new customers.  The Company
 supplemented deposit growth with increased borrowings when comparing the 2001
 and 2000 first quarter ends.  Borrowings in the amount of $50 million at
 March 31, 2001 were up $25 million compared to March 31, 2000 with increases
 in both Federal Home Loan Bank advances and retail repurchase agreements.
     Shareholders equity at March 31, 2001 was $54 million, or 8.7% of assets,
 and continues to exceed the regulatory requirements for a "well capitalized
 bank."  The Company's annualized return on average equity for the current
 quarter was 8.8% compared to 10.9 % for the quarter ended March 31, 2000.
 During the quarter ended March 31, 2001, the Company repurchased 25,014 shares
 of its common stock in connection with a stock repurchase program.  On
 April 10, 2001, the Company paid its regular quarterly dividend of $.185 per
 share.
 
     Alliance Financial Corporation is an independent bank holding company with
 one subsidiary, Alliance Bank, N.A., that provides banking, trust and
 investment services through 20 community branch locations in Cortland,
 Madison, Oneida, Onondaga and Broome counties.
 
     This press release contains certain forward-looking statements with
 respect to the financial condition, results of operations and business of
 Alliance Financial Corporation.  These forward-looking statements involve
 certain risks and uncertainties.  Factors that may cause actual results to
 differ materially from those contemplated by such forward-looking statements
 include, among others, the following possibilities: (1) an increase in
 competitive pressure in the banking industry; (2) changes in the interest rate
 environment reduce margins; (3) changes in the regulatory environment;
 (4) general economic conditions, either nationally or regionally, are less
 favorable than expected, resulting in, among other things, a deterioration in
 credit quality; (5) changes in business conditions and inflation; and
 (6) changes in the securities markets; (7) changes occur in technology used in
 the banking business; (8) the new Syracuse area branches do not attract the
 expected loan and deposit customers; (9) the ability to maintain and increase
 market share and control expenses; and (10) other factors detailed from time
 to time in the Company's SEC filings.
 
                         ALLIANCE FINANCIAL CORPORATION
                       CONSOLIDATED FINANCIAL INFORMATION
                   ($ in thousands except per share amounts)
                                   Unaudited
 
                                                              Three Months
                                                             Ended March 31,
                                                           2001          2000
 
     Condensed Income Statement
     Interest Income                                     $10,571       $9,276
     Interest Expense                                      5,609        4,161
     Net Interest Income                                   4,962        5,115
     Provision for Loan Losses                               590          250
     Net Interest Income After Provision for Loan Losses   4,372        4,865
     Other Income                                          2,017        1,332
     Other Expense                                         4,915        4,382
     Income Before taxes                                   1,474        1,815
     Provision for Income Taxes                              309          481
     Net Income                                           $1,165       $1,334
 
     Share and Per Share Data
     Weighted Average Shares Outstanding               3,596,989    3,517,408
     Basic and Diluted Earnings Per Share                  $0.32        $0.38
     Cash Dividends Per Share                              0.185        0.175
     Book Value                                            15.06        14.01
 
     Period-end Balances
     Assets                                             $618,946     $545,144
     Earning Assets                                      573,164      502,481
     Net Loans                                           327,729      280,200
     Deposits                                            507,397      466,506
     Shareholders' Equity                                 53,984       49,022
 
     Average Balances
     Assets                                             $604,434     $527,537
     Earning Assets                                      559,969      495,207
     Net Loans                                           322,477      278,998
     Deposits                                            494,715      450,351
     Shareholders' Equity                                 53,011       48,991
 
     Key Ratios
     Earnings:
     Return on Average Assets                              0.77%        1.01%
     Return on Average Equity                               8.79        10.88
     Net Interest Margin (Tax Equivalent)                   3.76         4.36
 
     Asset Quality:
     Net Loan Charge-offs to Average Loans, annualized     0.31%        0.14%
     Allowance for Loan Losses to Period-end Loans          1.12         1.25
     Allowance for Loan Losses to Nonperforming Loans     372.31       392.29
     Nonperforming Loans to Period-end Loans                0.30         0.32
     Nonperforming Assets to Total Assets                   0.22         0.21
 
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SOURCE Alliance Financial Corporation
    CORTLAND, N.Y. and ONEIDA, N.Y., April 20 /PRNewswire Interactive News
 Release/ -- Alliance Financial Corporation (Nasdaq:   ALNC) announced today that
 net income for the quarter ended March 31, 2001 was $1.2 million with earnings
 per share of $0.32.  This compares to net income of $1.3 million and earnings
 per share of $0.38 for the same period in 2000.
     John C. Mott, Chairman of Alliance Financial Corporation said, "We are
 extremely pleased with the continued growth that has resulted from our plans
 to expand our banking subsidiary.  In the past twelve months, loans that have
 grown $47 million, or 17%, have generated increased revenue, which when
 combined with strong security gains this quarter, have significantly offset
 our new branch start-up costs and overhead expenses as well as the higher
 interest expense associated with our deposit growth.  When comparing March 31,
 2001 to last year's first quarter-end, the Company's assets have increased
 more than 13%, to $619 million, and deposits have grown nearly $41 million, or
 8.8%.  Our momentum is building, and we believe that the growth of our
 expanded service area and customer base positions us well to improve our
 profits and provide greater value for our shareholders."
     Interest income for the first quarter of 2001 was $10.6 million, up 14%
 compared with the same period last year.  The increase was primarily
 associated with the significant growth in the Company's loan portfolio.
 Interest expense was up 35% to $5.6 million, reflecting both the growth in, as
 well as the higher rates paid on deposits.  Net interest income as a result,
 declined 3% to $5 million.  The Company increased its provision for loan loss
 expense for this year's first quarter to $590,000 in connection with the
 significant loan growth.
     Non interest income for the quarter ended March 31, 2001 was $2.0 million,
 up 51.4%, when compared to the quarter ended March 31, 2000.  Contributing to
 this increase were gains of $621,000 on the sales of securities that had been
 purchased in 2000.  The Company also reported a substantial increase in income
 from service charge on deposits, which rose 27.2%, to $580,000.
     Non interest expense in the amount of $4.9 million, which increased 12.2%,
 for the comparable periods, was principally impacted by a 15.7% increase in
 salary and benefits expense.  Much of the increase in salaries and benefits
 expense resulted from the Company's planned expansion of its staff that is
 serving its growing market. In the past year, the Company has opened and
 staffed three new offices in the Syracuse market area.  Associated with the
 development of the new branches, occupancy and equipment expense increased
 13.8%, when comparing the current quarter with the comparable prior year
 period.  Other operating expenses were up 3%.
     As of March 31, 2001, total assets were $619 million, increasing
 $74 million or 13.5%, compared to March 31, 2000.  For the comparable periods,
 loans were up $47 million, or 17%, with significant growth in the Company's
 consumer portfolio, up $26 million, or 38.5%, and the commercial portfolio, up
 $15 million, or 14.9%.  Investment securities increased $12 million, or 5.5%,
 when comparing the same periods, to $226 million at March 31, 2001.
 Non-performing assets as a percent of total assets were at 0.22% on March 31,
 2001, compared to 0.21% on March 31, 2000, and continued to remain stable at a
 relatively low rate, while the ratio of the allowance for loan losses to total
 loans was 1.12% compared to 1.25% for the same periods.  At the end of the
 first quarter of 2001, deposits of $507 million had increased $41 million, or
 8.8% compared to the prior year first quarter-end.  The majority of the growth
 resulted from increases in time deposits from new customers.  The Company
 supplemented deposit growth with increased borrowings when comparing the 2001
 and 2000 first quarter ends.  Borrowings in the amount of $50 million at
 March 31, 2001 were up $25 million compared to March 31, 2000 with increases
 in both Federal Home Loan Bank advances and retail repurchase agreements.
     Shareholders equity at March 31, 2001 was $54 million, or 8.7% of assets,
 and continues to exceed the regulatory requirements for a "well capitalized
 bank."  The Company's annualized return on average equity for the current
 quarter was 8.8% compared to 10.9 % for the quarter ended March 31, 2000.
 During the quarter ended March 31, 2001, the Company repurchased 25,014 shares
 of its common stock in connection with a stock repurchase program.  On
 April 10, 2001, the Company paid its regular quarterly dividend of $.185 per
 share.
 
     Alliance Financial Corporation is an independent bank holding company with
 one subsidiary, Alliance Bank, N.A., that provides banking, trust and
 investment services through 20 community branch locations in Cortland,
 Madison, Oneida, Onondaga and Broome counties.
 
     This press release contains certain forward-looking statements with
 respect to the financial condition, results of operations and business of
 Alliance Financial Corporation.  These forward-looking statements involve
 certain risks and uncertainties.  Factors that may cause actual results to
 differ materially from those contemplated by such forward-looking statements
 include, among others, the following possibilities: (1) an increase in
 competitive pressure in the banking industry; (2) changes in the interest rate
 environment reduce margins; (3) changes in the regulatory environment;
 (4) general economic conditions, either nationally or regionally, are less
 favorable than expected, resulting in, among other things, a deterioration in
 credit quality; (5) changes in business conditions and inflation; and
 (6) changes in the securities markets; (7) changes occur in technology used in
 the banking business; (8) the new Syracuse area branches do not attract the
 expected loan and deposit customers; (9) the ability to maintain and increase
 market share and control expenses; and (10) other factors detailed from time
 to time in the Company's SEC filings.
 
                         ALLIANCE FINANCIAL CORPORATION
                       CONSOLIDATED FINANCIAL INFORMATION
                   ($ in thousands except per share amounts)
                                   Unaudited
 
                                                              Three Months
                                                             Ended March 31,
                                                           2001          2000
 
     Condensed Income Statement
     Interest Income                                     $10,571       $9,276
     Interest Expense                                      5,609        4,161
     Net Interest Income                                   4,962        5,115
     Provision for Loan Losses                               590          250
     Net Interest Income After Provision for Loan Losses   4,372        4,865
     Other Income                                          2,017        1,332
     Other Expense                                         4,915        4,382
     Income Before taxes                                   1,474        1,815
     Provision for Income Taxes                              309          481
     Net Income                                           $1,165       $1,334
 
     Share and Per Share Data
     Weighted Average Shares Outstanding               3,596,989    3,517,408
     Basic and Diluted Earnings Per Share                  $0.32        $0.38
     Cash Dividends Per Share                              0.185        0.175
     Book Value                                            15.06        14.01
 
     Period-end Balances
     Assets                                             $618,946     $545,144
     Earning Assets                                      573,164      502,481
     Net Loans                                           327,729      280,200
     Deposits                                            507,397      466,506
     Shareholders' Equity                                 53,984       49,022
 
     Average Balances
     Assets                                             $604,434     $527,537
     Earning Assets                                      559,969      495,207
     Net Loans                                           322,477      278,998
     Deposits                                            494,715      450,351
     Shareholders' Equity                                 53,011       48,991
 
     Key Ratios
     Earnings:
     Return on Average Assets                              0.77%        1.01%
     Return on Average Equity                               8.79        10.88
     Net Interest Margin (Tax Equivalent)                   3.76         4.36
 
     Asset Quality:
     Net Loan Charge-offs to Average Loans, annualized     0.31%        0.14%
     Allowance for Loan Losses to Period-end Loans          1.12         1.25
     Allowance for Loan Losses to Nonperforming Loans     372.31       392.29
     Nonperforming Loans to Period-end Loans                0.30         0.32
     Nonperforming Assets to Total Assets                   0.22         0.21
 
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 SOURCE  Alliance Financial Corporation