Comm Bancorp, Inc. Reports First Quarter 2001 Earnings

Apr 27, 2001, 01:00 ET from Comm Bancorp, Inc.

    CLARKS SUMMIT, Pa., April 27 /PRNewswire/ --
 Comm Bancorp, Inc. (Nasdaq:   CCBP) today reported first quarter 2001 earnings
 of $1,070,000 or $0.54 per share.  Comparable first quarter 2000 earnings were
 $1,060,000 or $0.53 per share.  Comprehensive income totaled $1.4 million for
 the first quarter of 2001, compared to $1.0 million for the same quarter last
 year.  For the first quarters of 2001 and 2000, return on average assets
 equaled 1.04% and 1.05%, while return on average equity equaled 11.33% and
 12.12%.
     "I am pleased to announce that our recently established subsidiary, Comm
 Financial Services Corporation and our new Internet banking program, Klick_
 Banking became fully operational in the first quarter," stated William F.
 Farber, Sr., Acting President and Chief Executive Officer.  Comm Financial
 Services Corporation offers nontraditional insurance products and asset
 management services to individual and commercial customers.  In addition,
 through Klick_ Banking, customers are able to perform banking functions, pay
 bills and view and print canceled checks on-line.  "We believe these new
 products and services will enhance existing customer relationships as well as
 give us a competitive advantage to create new affiliations," said Farber.
 
     HIGHLIGHTS
 
      -- Average loan growth exceeded 5% over the prior year.
      -- Fee income increased 32% over last year.
      -- Efficiency improved to 61.1%.
      -- Asset quality continues to improve.
 
     INCOME STATEMENT REVIEW
 
     For the first three months of 2001, tax-equivalent net interest income
 totaled $3,867 thousand, an improvement of $87 thousand compared to
 $3,780 thousand for the same three months of 2000.  An increase in the volume
 of average earning assets over that of average interest-bearing liabilities
 was responsible for the improvement, as the net interest spread declined 3
 basis points.  Average earning assets were $395.7 million for the quarter
 ended March 31, 2001, an increase of $9.6 million compared to $386.1 million
 for the same quarter of 2000.  Average interest-bearing liabilities increased
 $4.1 million to $337.5 million for the first quarter of 2001, compared to
 $333.4 million for the first quarter last year.  Growth of $14.7 million in
 average loans, net of unearned income, and $21.2 million in average federal
 funds sold, partially offset by a $26.3 million decline in average investments
 caused the overall increase in average earning assets.  The $4.1 million
 increase in average interest-bearing liabilities resulted primarily from
 increases of $5.7 million and $2.7 million in average money market accounts
 and average time deposits less than $100 thousand, offset partially by a
 $4.7 million reduction in average short-term borrowings.  With regard to the
 net interest spread, a 14 basis point increase in the cost of funds more than
 offset an 11 basis point increase in the yield on earning assets.  The net
 interest margin improved to 3.96% for the first quarter of 2001, from 3.94%
 for the same quarter one year ago.
     The provision for loan losses totaled $180 thousand and $90 thousand for
 the quarters ended March 31, 2001 and 2000.
     Noninterest income amounted to $583 thousand for the first quarter of 2001
 and $613 thousand for the same quarter last year.  Included in noninterest
 income for the first quarter of 2000 were net gains on the sale of investment
 securities of $172 thousand.  Adjusting for these gains, net interest income
 improved $142 thousand or 32.2% over last year.  Service charges, fees and
 commissions improved $122 thousand, while net gains on the sale of loans
 increased $20 thousand.
     Noninterest expense declined slightly to $2,620 thousand for the first
 three months of 2001, in comparison to $2,627 thousand for the same three
 months of last year.  Slight increases of $10 thousand and $22 thousand in
 salaries and benefits expense and net occupancy and equipment expense were
 more than offset by a reduction in other expenses of $39 thousand.  The
 efficiency ratio for the first quarter improved to 61.2% in 2001 from 67.2% in
 2000.
 
     BALANCE SHEET REVIEW
     Total assets averaged $417.5 million for the quarter ended March 31, 2001,
 an increase of $10.6 million compared to $406.9 million for the same quarter
 of 2000.  Average loans, net of unearned income, increased $14.7 million to
 $295.0 million for the first quarter of 2001, from $280.3 million for the same
 period of last year.  Average investments and federal funds sold declined
 $5.1 million to $100.6 million, from $105.7 million for the same respective
 periods.  Deposits averaged $376.0 million for the first three months of 2001,
 an increase of $12.0 million compared to $364.0 million averaged for the same
 period one year earlier.  Average interest-bearing deposits grew $8.8 million,
 while noninterest-bearing deposits rose $3.2 million.
     Stockholders' equity increased $1.0 million to $38.6 million at March 31,
 2001, from $37.6 million at December 31, 2000.  Net income of $1,070 was the
 primary factor contributing to the betterment.  Also affecting stockholders'
 equity was other comprehensive income of $331 thousand, net cash dividends
 declared of $305 thousand and the repurchase of 5,000 shares of common stock
 for $129 thousand.  Total dividends declared for the first quarter equaled
 $0.18 per share in 2001 and $0.17 per share in 2000.
     Asset quality continued to steadily improve during the first quarter of
 2001.  Nonperforming assets equaled $3.9 million at March 31, 2001, and
 $4.0 million at December 31, 2000.  Reductions of $119 thousand in nonaccrual
 loans and $29 thousand in foreclosed assets, were partially offset by a
 $59 thousand increase in accruing loans past due 90 days or more.  As a
 percentage of loans, net of unearned income, nonperforming assets equaled
 1.34% at March 31, 2001 and 1.35% at December 31, 2000.
     The allowance for loan losses was $3.4 million and covered 85.0% of
 nonperforming assets at March 31, 2001, compared to $3.5 million and 74.4% at
 March 31, 2000.  The allowance for loan losses as a percentage of loans, net
 of unearned income, equaled 1.14% and 1.23% at March 31, 2001 and 2000.  Net
 loans charged-off for the first quarter amounted to $121 thousand or 0.17% of
 average loans outstanding in 2001 and $373 thousand or 0.53% of average loans
 outstanding in 2000.
     Comm Bancorp, Inc. serves four Pennsylvania counties through Community
 Bank and Trust Company's fourteen community banking offices.  Each office
 interdependent with the community offers a comprehensive array of financial
 products and services to individuals, businesses, not-for-profit organizations
 and government entities.  In addition, customers can take advantage of
 Klick_ Banking, on-line banking services, by accessing the Company's web site
 at http://www.combk.com.  The Company's business philosophy includes offering
 direct access to senior management and other officers and providing friendly,
 informed and courteous service, local and timely decision making, flexible and
 reasonable operating procedures and consistently-applied credit policies.
 
 
                                  Summary Data
                               Comm Bancorp, Inc.
                               Five Quarter Trend
                     (In thousands, expect per share data)
 
 
 
                         March 31,  Dec. 31,   Sept. 30,  June 30,  March 31,
                           2001       2000       2000       2000       2000
 
     Key performance data:
 
     Per share data:
     Net income            $0.54       $0.51      $0.59       $0.48     $0.53
 
     Cash dividends
      declared             $0.18       $0.18      $0.18       $0.17     $0.17
 
     Book value           $19.46      $18.95     $18.32      $17.68    $17.49
 
     Tangible book
      value               $18.56      $17.98     $17.29      $16.59    $16.36
 
     Market value:
       High               $32.00      $30.75     $27.50      $35.50    $40.50
       Low                $25.00      $25.38     $25.13      $27.25    $33.25
       Closing            $27.00      $30.75     $25.50      $27.25    $34.50
     Market
      capitalization     $53,522     $61,051    $50,624     $54,155   $69,408
 
     Common shares
      outstanding      1,982,279   1,985,399  1,985,242   1,987,347 2,011,818
 
     Selected ratios:
     Return on
      average
      stockholders'
      equity              11.33%      10.86%     12.82%      11.10%    12.12%
     Return on
      average assets       1.04%       0.98%      1.14%       0.96%     1.05%
     Leverage ratio        8.67%       8.71%      8.54%       8.30%     8.34%
     Efficiency ratio     61.19%      68.63%     62.94%      65.85%    67.15%
     Nonperforming
      assets to
      loans, net           1.34%       1.35%      1.43%       1.46%     1.65%
 
     Net charge-offs
      to average
      loans, net           0.17%       0.30%      0.26%       0.21%     0.53%
     Allowance for
      loan losses
      to loans, net        1.14%       1.10%      1.16%       1.20%     1.23%
     Earning assets
      yield (FTE)          7.98%       8.09%      8.09%       7.94%     7.87%
     Cost of Funds         4.70%       4.74%      4.58%       4.58%     4.56%
     Net interest
      spread (FTE)         3.28%       3.35%      3.51%       3.36%     3.31%
     Net interest
      margin (FTE)         3.96%       4.04%      4.18%       4.01%     3.94%
 
 
                               Comm Bancorp, Inc.
                       Consolidated Statements of Income
                     (In thousands, except per share data)
 
 
     Three months ended                             March 31,      March 31,
                                                       2001            2000
 
     Interest income:
 
     Interest and fees on loans:
       Taxable                                         $6,115         $5,561
       Tax-exempt                                          94            179
 
     Interest and dividends on investment
      securities available-for-sale:
       Taxable                                            710            964
       Tax-exempt                                         316            476
       Dividends                                           31             33
 
     Interest on federal funds sold                       304              9
     Total interest income                              7,570          7,222
 
     Interest expense:
     Interest on deposits                               3,913          3,710
     Interest on borrowed funds                             1             69
       Total interest expense                           3,914          3,779
 
       Net interest income                              3,656          3,443
     Provision for loan losses                            180             90
 
       Net interest income after provision for
        loan losses                                     3,476          3,353
 
     Noninterest income:
     Service charges, fees and commissions                562            440
     Net gains on sale of loans                            21              1
     Net gains on sale of investment securities                          172
       Total noninterest income                           583            613
 
     Noninterest expense:
     Salaries and employee benefits expense             1,289          1,279
     Net occupancy and equipment expense                  413            391
     Other expenses                                       918            957
       Total noninterest expense                        2,620          2,627
     Income before income taxes                         1,439          1,339
     Provision for income tax expense                     369            279
       Net income                                      $1,070         $1,060
 
     Other comprehensive income (loss):
     Unrealized gains (losses) on investment
      securities available-for-sale                      $502            $89
     Reclassification adjustment for gains
      included in net income                                            (172)
     Income tax expense (benefit) related to other
      comprehensive income (loss)                         171            (28)
       Other comprehensive income (loss), net of
      income taxes                                        331            (55)
       Comprehensive income                            $1,401         $1,005
 
     Per share data:
     Net income                                         $0.54          $0.53
     Cash dividends declared                            $0.18          $0.17
     Average common shares outstanding              1,987,001      2,016,768
 
 
                               Comm Bancorp, Inc.
                       Consolidated Statements of Income
                     (In thousands, except per share data)
 
 
     Three months ended  March 31,   Dec. 31,  Sept. 30,  June 30,  March 31,
                           2001        2000      2000       2000       2000
 
     Interest income:
     Interest and fees
      on loans:
       Taxable            $6,115      $6,167     $6,066      $5,768    $5,561
       Tax-exempt             94         140        147         179       179
     Interest and
      dividends on
      investment
      securities
      available
      -for-sale:
       Taxable               710         759        821         893       964
       Tax-exempt            316         370        392         407       476
       Dividends              31          34         32          31        33
     Interest on
      federal funds
      sold                   304         123         12          20         9
       Total interest
        income             7,570       7,593      7,470       7,298     7,222
     Interest expense:
     Interest on
      deposits             3,913       3,931      3,690       3,729     3,710
     Interest on
      borrowed funds           1                     53          30        69
       Total interest
        expense            3,914       3,931      3,743       3,759     3,779
       Net interest
        income             3,656       3,662      3,727       3,539     3,443
     Provision for
      loan losses            180         120        120          90        90
       Net interest
        income after
        provision for
        loan losses        3,476       3,542      3,607       3,449     3,353
     Noninterest
      income:
     Service charges,
      fees and
      commissions            562         561        579         485       440
     Net gains on sale
      of loans                21          13          4                     1
     Net gains on sale
      of investment
      securities                         201                      1       172
       Total
        noninterest
        income               583         775        583         486       613
     Noninterest expense:
     Salaries and
      employee benefits
      expense              1,289       1,303      1,337       1,300     1,279
     Net occupancy
      and equipment
      expense                413         478        424         399       391
     Other expenses          918       1,223        976       1,002       957
       Total
        noninterest
        expense            2,620       3,004      2,737       2,701     2,627
     Income before
      income taxes         1,439       1,313      1,453       1,234     1,339
     Provision for
      income tax expense     369         303        293         264       279
       Net income         $1,070      $1,010     $1,160        $970    $1,060
     Other comprehensive
      income (loss):
     Unrealized gains
      (losses) on
      investment
      securities
      available-for
      -sale                 $502      $1,101       $741        $249       $89
     Reclassification
      adjustment for
      gains included
      in net income                    (201)                    (1)     (172)
     Income tax expense
      (benefit) related
      to other
      comprehensive income
      (loss)                 171         306        252          84      (28)
       Other comprehensive
        income (loss), net
        of income taxes      331         594        489         164      (55)
       Comprehensive
        income            $1,401      $1,604     $1,649      $1,134    $1,005
     Per share data:
     Net income            $0.54       $0.51      $0.59       $0.48     $0.53
     Cash dividends
      declared             $0.18       $0.18      $0.18       $0.17     $0.17
     Average common
      shares           1,987,001   1,986,421  1,989,025   1,991,303 2,016,768
 
 
                               Comm Bancorp, Inc.
                Details of Net Interest and Net Interest Margin
                 (In thousands, fully taxable equivalent basis)
 
 
     Three months ended  March 31,   Dec. 31,  Sept. 30,   June 30, March 31,
                            2001       2000       2000       2000      2000
 
     Net interest income:
     Interest income
     Loans, net:
     Taxable                $6,115     $6,167     $6,066      $5,768   $5,561
     Tax-exempt                142        211        223         272      271
       Total loans, net      6,257      6,378      6,289       6,040    5,832
     Investments:
     Taxable                   741        793        853         924      997
     Tax-exempt                479        560        594         617      721
       Total investments     1,220      1,353      1,447       1,541    1,718
     Federal funds sold        304        123         12          20        9
       Total interest income 7,781      7,854      7,748       7,601    7,559
     Interest expense
       Deposits              3,913      3,931      3,690       3,729    3,710
       Borrowed funds            1                    53          30       69
         Total interest
          expense            3,914      3,931      3,743       3,759    3,779
         Net interest
          income            $3,867     $3,923     $4,005      $3,842   $3,780
 
     Loans, net:
       Taxable               8.59%      8.52%      8.55%       8.37%    8.33%
       Tax-exempt            9.08%      9.77%     10.75%       9.00%    9.12%
         Total loans, net    8.60%      8.56%      8.61%       8.40%    8.37%
     Investments:
       Taxable               5.62%      5.90%      5.77%       5.91%    5.88%
       Tax-exempt            7.71%      7.77%      7.68%       7.86%    7.91%
         Total investments   6.29%      6.56%      6.42%       6.56%    6.59%
     Federal funds sold      5.61%      6.29%      6.23%       6.08%    4.43%
       Total earning assets  7.98%      8.09%      8.09%       7.94%    7.87%
     Interest expense
       Deposits              4.70%      4.74%      4.56%       4.56%    4.54%
       Borrowed funds       18.43%      0.00%      6.86%       6.88%    5.92%
         Total interest
          -bearing
          liabilities        4.70%      4.74%      4.58%       4.58%    4.56%
         Net interest
          spread             3.28%      3.35%      3.51%       3.36%    3.31%
         Net interest
          margin             3.96%      4.04%      4.18%       4.01%    3.94%
 
 
                               Comm Bancorp, Inc.
                          Consolidated Balance Sheets
                     (In thousands, except per share data)
 
 
     At period end       March 31,  Dec. 31,   Sept. 30,  June 30,  March 31,
                           2001       2000       2000       2000       2000
 
     Assets:
     Cash and due
      from banks           $10,549    $11,919     $9,243     $14,159   $8,775
     Federal funds sold     23,675     25,500      4,000
     Investment securities
      available-for-sale    88,160     71,246     85,727      90,683   99,184
     Loans held for sale,
      net                       70         62
     Loans, net of unearned
      income               292,964    297,530    291,779     287,850  285,874
     Less: Allowance for
      loan losses            3,344      3,285      3,386       3,456    3,516
     Net loans             289,620    294,245    288,393     284,394  282,358
     Premises and
      equipment, net         9,628      9,708      9,791       9,841    9,504
     Other assets            7,065      7,060      7,699       8,201    8,396
       Total assets       $428,767   $419,740   $404,853    $407,278 $408,217
 
     Liabilities:
     Deposits:
       Non-interest
        -bearing           $38,925    $39,263    $38,857     $39,439  $36,678
       Interest-bearing    347,800    339,458    325,544     322,723  331,485
         Total deposits    386,725    378,721    364,401     362,162  368,163
     Borrowed funds                        36         37       6,337      838
     Other liabilities       3,457      3,365      4,048       3,652    4,026
         Total liabilities 390,182    382,122    368,486     372,151  373,027
 
     Stockholders' equity:
     Common stock, par
      value $0.33 authorized
      12,000,000, issued
     1,982,279; 1,985,399;
      1,985,242; 1,987,347;
      2,011,818                654        655        655         656      664
     Capital surplus         6,281      6,244      6,195       6,154    6,179
     Retained earnings      30,910     30,310     29,702      28,991   29,185
     Accumulated other
      comprehensive income
      (loss)                   740        409       (185)       (674)    (838)
         Total stockholders'
          equity            38,585     37,618     36,367      35,127   35,190
         Total liabilities
          and stockholders'
          equity          $428,767   $419,740   $404,853    $407,278 $408,217
 
 
                               Comm Bancorp, Inc.
                          Consolidated Balance Sheets
                     (In thousands, except per share data)
 
 
     Average quarterly   March 31,   Dec. 31,   Sept. 30,  June 30, March 31,
      balances              2001       2000       2000       2000      2000
 
     Assets:
     Loans, net:
       Taxable            $288,707   $287,955   $282,169    $277,066 $268,399
       Tax-exempt            6,339      8,590      8,253      12,151   11,955
         Total loans, net  295,046    296,545    290,422     289,217  280,354
     Investments:
       Taxable              53,443     53,433     58,840      62,832   68,238
       Tax-exempt           25,197     28,666     30,780      31,587   36,675
         Total investments  78,640     82,099     89,620      94,419  104,913
     Federal funds sold     21,979      7,775        766       1,323      817
         Total earning
          assets           395,665    386,419    380,808     384,959  386,084
     Other assets           21,849     22,864     22,456      23,078   20,817
         Total assets     $417,514   $409,283   $403,264    $408,037 $406,901
 
     Liabilities and
      stockholders'
      equity:
     Deposits:
       Interest-bearing   $337,523   $329,677   $322,044    $328,705 $328,701
       Non-interest
        -bearing            38,458     38,992     38,631      38,851   35,319
         Total deposits    375,981    368,669    360,675     367,556  364,020
     Borrowed funds             22        148      3,072       1,753    4,689
     Other liabilities       3,222      3,465      3,533       3,584    3,024
         Total liabilities 379,225    372,282    367,280     372,893  371,733
     Stockholders' equity   38,289     37,001     35,984      35,144   35,168
         Total liabilities
          and stockholders'
          equity          $417,514   $409,283   $403,264    $408,037 $406,901
 
 
                               Comm Bancorp, Inc.
                               Asset Quality Data
                                 (In thousands)
 
     At quarter end      March 31,   Dec. 31,  Sept. 30,   June 30, March 31,
                            2001       2000       2000       2000      2000
 
     Nonperforming assets:
       Nonaccrual/
        restructured loans  $1,689     $1,808     $2,544      $2,607   $2,436
       Accruing loans past
       due 90 days or more     884        825        990         891    1,735
       Foreclosed assets     1,362      1,391        648         710      555
     Total nonperforming
      assets                $3,935     $4,024     $4,182      $4,208   $4,726
 
     Three months ended
     Allowance for loan losses:
     Beginning balance      $3,285     $3,386     $3,456      $3,516   $3,799
     Charge-offs               150        224        226         176      403
     Recoveries                 29          3         36          26       30
     Provision for loan
      losses                   180        120        120          90       90
     Ending balance         $3,344     $3,285     $3,386      $3,456   $3,516
 
     Except for the historical information contained, herein, the matters
 discussed in this press release are forward-looking statements that involve
 risks and uncertainties in the banking industry and overall economy.  Such
 risks and uncertainties are detailed in the Company's Securities and Exchange
 Commission reports, including the Annual Report on Form 10-K and quarterly
 reports on Form 10-Q.
 
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SOURCE Comm Bancorp, Inc.
    CLARKS SUMMIT, Pa., April 27 /PRNewswire/ --
 Comm Bancorp, Inc. (Nasdaq:   CCBP) today reported first quarter 2001 earnings
 of $1,070,000 or $0.54 per share.  Comparable first quarter 2000 earnings were
 $1,060,000 or $0.53 per share.  Comprehensive income totaled $1.4 million for
 the first quarter of 2001, compared to $1.0 million for the same quarter last
 year.  For the first quarters of 2001 and 2000, return on average assets
 equaled 1.04% and 1.05%, while return on average equity equaled 11.33% and
 12.12%.
     "I am pleased to announce that our recently established subsidiary, Comm
 Financial Services Corporation and our new Internet banking program, Klick_
 Banking became fully operational in the first quarter," stated William F.
 Farber, Sr., Acting President and Chief Executive Officer.  Comm Financial
 Services Corporation offers nontraditional insurance products and asset
 management services to individual and commercial customers.  In addition,
 through Klick_ Banking, customers are able to perform banking functions, pay
 bills and view and print canceled checks on-line.  "We believe these new
 products and services will enhance existing customer relationships as well as
 give us a competitive advantage to create new affiliations," said Farber.
 
     HIGHLIGHTS
 
      -- Average loan growth exceeded 5% over the prior year.
      -- Fee income increased 32% over last year.
      -- Efficiency improved to 61.1%.
      -- Asset quality continues to improve.
 
     INCOME STATEMENT REVIEW
 
     For the first three months of 2001, tax-equivalent net interest income
 totaled $3,867 thousand, an improvement of $87 thousand compared to
 $3,780 thousand for the same three months of 2000.  An increase in the volume
 of average earning assets over that of average interest-bearing liabilities
 was responsible for the improvement, as the net interest spread declined 3
 basis points.  Average earning assets were $395.7 million for the quarter
 ended March 31, 2001, an increase of $9.6 million compared to $386.1 million
 for the same quarter of 2000.  Average interest-bearing liabilities increased
 $4.1 million to $337.5 million for the first quarter of 2001, compared to
 $333.4 million for the first quarter last year.  Growth of $14.7 million in
 average loans, net of unearned income, and $21.2 million in average federal
 funds sold, partially offset by a $26.3 million decline in average investments
 caused the overall increase in average earning assets.  The $4.1 million
 increase in average interest-bearing liabilities resulted primarily from
 increases of $5.7 million and $2.7 million in average money market accounts
 and average time deposits less than $100 thousand, offset partially by a
 $4.7 million reduction in average short-term borrowings.  With regard to the
 net interest spread, a 14 basis point increase in the cost of funds more than
 offset an 11 basis point increase in the yield on earning assets.  The net
 interest margin improved to 3.96% for the first quarter of 2001, from 3.94%
 for the same quarter one year ago.
     The provision for loan losses totaled $180 thousand and $90 thousand for
 the quarters ended March 31, 2001 and 2000.
     Noninterest income amounted to $583 thousand for the first quarter of 2001
 and $613 thousand for the same quarter last year.  Included in noninterest
 income for the first quarter of 2000 were net gains on the sale of investment
 securities of $172 thousand.  Adjusting for these gains, net interest income
 improved $142 thousand or 32.2% over last year.  Service charges, fees and
 commissions improved $122 thousand, while net gains on the sale of loans
 increased $20 thousand.
     Noninterest expense declined slightly to $2,620 thousand for the first
 three months of 2001, in comparison to $2,627 thousand for the same three
 months of last year.  Slight increases of $10 thousand and $22 thousand in
 salaries and benefits expense and net occupancy and equipment expense were
 more than offset by a reduction in other expenses of $39 thousand.  The
 efficiency ratio for the first quarter improved to 61.2% in 2001 from 67.2% in
 2000.
 
     BALANCE SHEET REVIEW
     Total assets averaged $417.5 million for the quarter ended March 31, 2001,
 an increase of $10.6 million compared to $406.9 million for the same quarter
 of 2000.  Average loans, net of unearned income, increased $14.7 million to
 $295.0 million for the first quarter of 2001, from $280.3 million for the same
 period of last year.  Average investments and federal funds sold declined
 $5.1 million to $100.6 million, from $105.7 million for the same respective
 periods.  Deposits averaged $376.0 million for the first three months of 2001,
 an increase of $12.0 million compared to $364.0 million averaged for the same
 period one year earlier.  Average interest-bearing deposits grew $8.8 million,
 while noninterest-bearing deposits rose $3.2 million.
     Stockholders' equity increased $1.0 million to $38.6 million at March 31,
 2001, from $37.6 million at December 31, 2000.  Net income of $1,070 was the
 primary factor contributing to the betterment.  Also affecting stockholders'
 equity was other comprehensive income of $331 thousand, net cash dividends
 declared of $305 thousand and the repurchase of 5,000 shares of common stock
 for $129 thousand.  Total dividends declared for the first quarter equaled
 $0.18 per share in 2001 and $0.17 per share in 2000.
     Asset quality continued to steadily improve during the first quarter of
 2001.  Nonperforming assets equaled $3.9 million at March 31, 2001, and
 $4.0 million at December 31, 2000.  Reductions of $119 thousand in nonaccrual
 loans and $29 thousand in foreclosed assets, were partially offset by a
 $59 thousand increase in accruing loans past due 90 days or more.  As a
 percentage of loans, net of unearned income, nonperforming assets equaled
 1.34% at March 31, 2001 and 1.35% at December 31, 2000.
     The allowance for loan losses was $3.4 million and covered 85.0% of
 nonperforming assets at March 31, 2001, compared to $3.5 million and 74.4% at
 March 31, 2000.  The allowance for loan losses as a percentage of loans, net
 of unearned income, equaled 1.14% and 1.23% at March 31, 2001 and 2000.  Net
 loans charged-off for the first quarter amounted to $121 thousand or 0.17% of
 average loans outstanding in 2001 and $373 thousand or 0.53% of average loans
 outstanding in 2000.
     Comm Bancorp, Inc. serves four Pennsylvania counties through Community
 Bank and Trust Company's fourteen community banking offices.  Each office
 interdependent with the community offers a comprehensive array of financial
 products and services to individuals, businesses, not-for-profit organizations
 and government entities.  In addition, customers can take advantage of
 Klick_ Banking, on-line banking services, by accessing the Company's web site
 at http://www.combk.com.  The Company's business philosophy includes offering
 direct access to senior management and other officers and providing friendly,
 informed and courteous service, local and timely decision making, flexible and
 reasonable operating procedures and consistently-applied credit policies.
 
 
                                  Summary Data
                               Comm Bancorp, Inc.
                               Five Quarter Trend
                     (In thousands, expect per share data)
 
 
 
                         March 31,  Dec. 31,   Sept. 30,  June 30,  March 31,
                           2001       2000       2000       2000       2000
 
     Key performance data:
 
     Per share data:
     Net income            $0.54       $0.51      $0.59       $0.48     $0.53
 
     Cash dividends
      declared             $0.18       $0.18      $0.18       $0.17     $0.17
 
     Book value           $19.46      $18.95     $18.32      $17.68    $17.49
 
     Tangible book
      value               $18.56      $17.98     $17.29      $16.59    $16.36
 
     Market value:
       High               $32.00      $30.75     $27.50      $35.50    $40.50
       Low                $25.00      $25.38     $25.13      $27.25    $33.25
       Closing            $27.00      $30.75     $25.50      $27.25    $34.50
     Market
      capitalization     $53,522     $61,051    $50,624     $54,155   $69,408
 
     Common shares
      outstanding      1,982,279   1,985,399  1,985,242   1,987,347 2,011,818
 
     Selected ratios:
     Return on
      average
      stockholders'
      equity              11.33%      10.86%     12.82%      11.10%    12.12%
     Return on
      average assets       1.04%       0.98%      1.14%       0.96%     1.05%
     Leverage ratio        8.67%       8.71%      8.54%       8.30%     8.34%
     Efficiency ratio     61.19%      68.63%     62.94%      65.85%    67.15%
     Nonperforming
      assets to
      loans, net           1.34%       1.35%      1.43%       1.46%     1.65%
 
     Net charge-offs
      to average
      loans, net           0.17%       0.30%      0.26%       0.21%     0.53%
     Allowance for
      loan losses
      to loans, net        1.14%       1.10%      1.16%       1.20%     1.23%
     Earning assets
      yield (FTE)          7.98%       8.09%      8.09%       7.94%     7.87%
     Cost of Funds         4.70%       4.74%      4.58%       4.58%     4.56%
     Net interest
      spread (FTE)         3.28%       3.35%      3.51%       3.36%     3.31%
     Net interest
      margin (FTE)         3.96%       4.04%      4.18%       4.01%     3.94%
 
 
                               Comm Bancorp, Inc.
                       Consolidated Statements of Income
                     (In thousands, except per share data)
 
 
     Three months ended                             March 31,      March 31,
                                                       2001            2000
 
     Interest income:
 
     Interest and fees on loans:
       Taxable                                         $6,115         $5,561
       Tax-exempt                                          94            179
 
     Interest and dividends on investment
      securities available-for-sale:
       Taxable                                            710            964
       Tax-exempt                                         316            476
       Dividends                                           31             33
 
     Interest on federal funds sold                       304              9
     Total interest income                              7,570          7,222
 
     Interest expense:
     Interest on deposits                               3,913          3,710
     Interest on borrowed funds                             1             69
       Total interest expense                           3,914          3,779
 
       Net interest income                              3,656          3,443
     Provision for loan losses                            180             90
 
       Net interest income after provision for
        loan losses                                     3,476          3,353
 
     Noninterest income:
     Service charges, fees and commissions                562            440
     Net gains on sale of loans                            21              1
     Net gains on sale of investment securities                          172
       Total noninterest income                           583            613
 
     Noninterest expense:
     Salaries and employee benefits expense             1,289          1,279
     Net occupancy and equipment expense                  413            391
     Other expenses                                       918            957
       Total noninterest expense                        2,620          2,627
     Income before income taxes                         1,439          1,339
     Provision for income tax expense                     369            279
       Net income                                      $1,070         $1,060
 
     Other comprehensive income (loss):
     Unrealized gains (losses) on investment
      securities available-for-sale                      $502            $89
     Reclassification adjustment for gains
      included in net income                                            (172)
     Income tax expense (benefit) related to other
      comprehensive income (loss)                         171            (28)
       Other comprehensive income (loss), net of
      income taxes                                        331            (55)
       Comprehensive income                            $1,401         $1,005
 
     Per share data:
     Net income                                         $0.54          $0.53
     Cash dividends declared                            $0.18          $0.17
     Average common shares outstanding              1,987,001      2,016,768
 
 
                               Comm Bancorp, Inc.
                       Consolidated Statements of Income
                     (In thousands, except per share data)
 
 
     Three months ended  March 31,   Dec. 31,  Sept. 30,  June 30,  March 31,
                           2001        2000      2000       2000       2000
 
     Interest income:
     Interest and fees
      on loans:
       Taxable            $6,115      $6,167     $6,066      $5,768    $5,561
       Tax-exempt             94         140        147         179       179
     Interest and
      dividends on
      investment
      securities
      available
      -for-sale:
       Taxable               710         759        821         893       964
       Tax-exempt            316         370        392         407       476
       Dividends              31          34         32          31        33
     Interest on
      federal funds
      sold                   304         123         12          20         9
       Total interest
        income             7,570       7,593      7,470       7,298     7,222
     Interest expense:
     Interest on
      deposits             3,913       3,931      3,690       3,729     3,710
     Interest on
      borrowed funds           1                     53          30        69
       Total interest
        expense            3,914       3,931      3,743       3,759     3,779
       Net interest
        income             3,656       3,662      3,727       3,539     3,443
     Provision for
      loan losses            180         120        120          90        90
       Net interest
        income after
        provision for
        loan losses        3,476       3,542      3,607       3,449     3,353
     Noninterest
      income:
     Service charges,
      fees and
      commissions            562         561        579         485       440
     Net gains on sale
      of loans                21          13          4                     1
     Net gains on sale
      of investment
      securities                         201                      1       172
       Total
        noninterest
        income               583         775        583         486       613
     Noninterest expense:
     Salaries and
      employee benefits
      expense              1,289       1,303      1,337       1,300     1,279
     Net occupancy
      and equipment
      expense                413         478        424         399       391
     Other expenses          918       1,223        976       1,002       957
       Total
        noninterest
        expense            2,620       3,004      2,737       2,701     2,627
     Income before
      income taxes         1,439       1,313      1,453       1,234     1,339
     Provision for
      income tax expense     369         303        293         264       279
       Net income         $1,070      $1,010     $1,160        $970    $1,060
     Other comprehensive
      income (loss):
     Unrealized gains
      (losses) on
      investment
      securities
      available-for
      -sale                 $502      $1,101       $741        $249       $89
     Reclassification
      adjustment for
      gains included
      in net income                    (201)                    (1)     (172)
     Income tax expense
      (benefit) related
      to other
      comprehensive income
      (loss)                 171         306        252          84      (28)
       Other comprehensive
        income (loss), net
        of income taxes      331         594        489         164      (55)
       Comprehensive
        income            $1,401      $1,604     $1,649      $1,134    $1,005
     Per share data:
     Net income            $0.54       $0.51      $0.59       $0.48     $0.53
     Cash dividends
      declared             $0.18       $0.18      $0.18       $0.17     $0.17
     Average common
      shares           1,987,001   1,986,421  1,989,025   1,991,303 2,016,768
 
 
                               Comm Bancorp, Inc.
                Details of Net Interest and Net Interest Margin
                 (In thousands, fully taxable equivalent basis)
 
 
     Three months ended  March 31,   Dec. 31,  Sept. 30,   June 30, March 31,
                            2001       2000       2000       2000      2000
 
     Net interest income:
     Interest income
     Loans, net:
     Taxable                $6,115     $6,167     $6,066      $5,768   $5,561
     Tax-exempt                142        211        223         272      271
       Total loans, net      6,257      6,378      6,289       6,040    5,832
     Investments:
     Taxable                   741        793        853         924      997
     Tax-exempt                479        560        594         617      721
       Total investments     1,220      1,353      1,447       1,541    1,718
     Federal funds sold        304        123         12          20        9
       Total interest income 7,781      7,854      7,748       7,601    7,559
     Interest expense
       Deposits              3,913      3,931      3,690       3,729    3,710
       Borrowed funds            1                    53          30       69
         Total interest
          expense            3,914      3,931      3,743       3,759    3,779
         Net interest
          income            $3,867     $3,923     $4,005      $3,842   $3,780
 
     Loans, net:
       Taxable               8.59%      8.52%      8.55%       8.37%    8.33%
       Tax-exempt            9.08%      9.77%     10.75%       9.00%    9.12%
         Total loans, net    8.60%      8.56%      8.61%       8.40%    8.37%
     Investments:
       Taxable               5.62%      5.90%      5.77%       5.91%    5.88%
       Tax-exempt            7.71%      7.77%      7.68%       7.86%    7.91%
         Total investments   6.29%      6.56%      6.42%       6.56%    6.59%
     Federal funds sold      5.61%      6.29%      6.23%       6.08%    4.43%
       Total earning assets  7.98%      8.09%      8.09%       7.94%    7.87%
     Interest expense
       Deposits              4.70%      4.74%      4.56%       4.56%    4.54%
       Borrowed funds       18.43%      0.00%      6.86%       6.88%    5.92%
         Total interest
          -bearing
          liabilities        4.70%      4.74%      4.58%       4.58%    4.56%
         Net interest
          spread             3.28%      3.35%      3.51%       3.36%    3.31%
         Net interest
          margin             3.96%      4.04%      4.18%       4.01%    3.94%
 
 
                               Comm Bancorp, Inc.
                          Consolidated Balance Sheets
                     (In thousands, except per share data)
 
 
     At period end       March 31,  Dec. 31,   Sept. 30,  June 30,  March 31,
                           2001       2000       2000       2000       2000
 
     Assets:
     Cash and due
      from banks           $10,549    $11,919     $9,243     $14,159   $8,775
     Federal funds sold     23,675     25,500      4,000
     Investment securities
      available-for-sale    88,160     71,246     85,727      90,683   99,184
     Loans held for sale,
      net                       70         62
     Loans, net of unearned
      income               292,964    297,530    291,779     287,850  285,874
     Less: Allowance for
      loan losses            3,344      3,285      3,386       3,456    3,516
     Net loans             289,620    294,245    288,393     284,394  282,358
     Premises and
      equipment, net         9,628      9,708      9,791       9,841    9,504
     Other assets            7,065      7,060      7,699       8,201    8,396
       Total assets       $428,767   $419,740   $404,853    $407,278 $408,217
 
     Liabilities:
     Deposits:
       Non-interest
        -bearing           $38,925    $39,263    $38,857     $39,439  $36,678
       Interest-bearing    347,800    339,458    325,544     322,723  331,485
         Total deposits    386,725    378,721    364,401     362,162  368,163
     Borrowed funds                        36         37       6,337      838
     Other liabilities       3,457      3,365      4,048       3,652    4,026
         Total liabilities 390,182    382,122    368,486     372,151  373,027
 
     Stockholders' equity:
     Common stock, par
      value $0.33 authorized
      12,000,000, issued
     1,982,279; 1,985,399;
      1,985,242; 1,987,347;
      2,011,818                654        655        655         656      664
     Capital surplus         6,281      6,244      6,195       6,154    6,179
     Retained earnings      30,910     30,310     29,702      28,991   29,185
     Accumulated other
      comprehensive income
      (loss)                   740        409       (185)       (674)    (838)
         Total stockholders'
          equity            38,585     37,618     36,367      35,127   35,190
         Total liabilities
          and stockholders'
          equity          $428,767   $419,740   $404,853    $407,278 $408,217
 
 
                               Comm Bancorp, Inc.
                          Consolidated Balance Sheets
                     (In thousands, except per share data)
 
 
     Average quarterly   March 31,   Dec. 31,   Sept. 30,  June 30, March 31,
      balances              2001       2000       2000       2000      2000
 
     Assets:
     Loans, net:
       Taxable            $288,707   $287,955   $282,169    $277,066 $268,399
       Tax-exempt            6,339      8,590      8,253      12,151   11,955
         Total loans, net  295,046    296,545    290,422     289,217  280,354
     Investments:
       Taxable              53,443     53,433     58,840      62,832   68,238
       Tax-exempt           25,197     28,666     30,780      31,587   36,675
         Total investments  78,640     82,099     89,620      94,419  104,913
     Federal funds sold     21,979      7,775        766       1,323      817
         Total earning
          assets           395,665    386,419    380,808     384,959  386,084
     Other assets           21,849     22,864     22,456      23,078   20,817
         Total assets     $417,514   $409,283   $403,264    $408,037 $406,901
 
     Liabilities and
      stockholders'
      equity:
     Deposits:
       Interest-bearing   $337,523   $329,677   $322,044    $328,705 $328,701
       Non-interest
        -bearing            38,458     38,992     38,631      38,851   35,319
         Total deposits    375,981    368,669    360,675     367,556  364,020
     Borrowed funds             22        148      3,072       1,753    4,689
     Other liabilities       3,222      3,465      3,533       3,584    3,024
         Total liabilities 379,225    372,282    367,280     372,893  371,733
     Stockholders' equity   38,289     37,001     35,984      35,144   35,168
         Total liabilities
          and stockholders'
          equity          $417,514   $409,283   $403,264    $408,037 $406,901
 
 
                               Comm Bancorp, Inc.
                               Asset Quality Data
                                 (In thousands)
 
     At quarter end      March 31,   Dec. 31,  Sept. 30,   June 30, March 31,
                            2001       2000       2000       2000      2000
 
     Nonperforming assets:
       Nonaccrual/
        restructured loans  $1,689     $1,808     $2,544      $2,607   $2,436
       Accruing loans past
       due 90 days or more     884        825        990         891    1,735
       Foreclosed assets     1,362      1,391        648         710      555
     Total nonperforming
      assets                $3,935     $4,024     $4,182      $4,208   $4,726
 
     Three months ended
     Allowance for loan losses:
     Beginning balance      $3,285     $3,386     $3,456      $3,516   $3,799
     Charge-offs               150        224        226         176      403
     Recoveries                 29          3         36          26       30
     Provision for loan
      losses                   180        120        120          90       90
     Ending balance         $3,344     $3,285     $3,386      $3,456   $3,516
 
     Except for the historical information contained, herein, the matters
 discussed in this press release are forward-looking statements that involve
 risks and uncertainties in the banking industry and overall economy.  Such
 risks and uncertainties are detailed in the Company's Securities and Exchange
 Commission reports, including the Annual Report on Form 10-K and quarterly
 reports on Form 10-Q.
 
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 SOURCE  Comm Bancorp, Inc.