Drovers Bancshares Announces First Quarter Earnings

Apr 11, 2001, 01:00 ET from Drovers Bancshares Corporation

    YORK, Pa., April 11 /PRNewswire/ --
 Drovers Bancshares Corporation (Nasdaq:   DROV), parent of The Drovers &
 Mechanics Bank, reported first quarter 2001 net income of $2,083,000, an
 increase of $676,000 over last year.  Basic earnings per share were $0.41 for
 the first quarter of 2001 compared to $0.28 for the same period in 2000.
 Return on average equity was 14.76% and return on average assets was 1.06% for
 the first three months of 2001.
     Falling interest rates and a slowing economy began to impact growth in the
 first quarter.  Total loans grew $2,721,000, or 0.5%, since the end of 2000.
 During the same period, deposits grew $36,280,000, or 6.0%, as customers moved
 funds temporarily into more liquid short-term investments.
     In the past twelve months, total loans grew $26,147,000, or 5.4%.  The
 growth was funded by deposits, which grew $72,571,000, or 13.6% during the
 same period.  Total assets stood at $827,455,000 at March 31, 2001, up
 $78,907,000, or 10.5%, over the prior year.  The growth contributed to an
 increase in net interest income, which rose $98,000 compared to the first
 quarter of 2000.  Other income excluding securities gains (losses) increased
 $399,000, or 31.4%, due mainly to an increase in gains on loan sales caused by
 low interest rates and borrowers refinancing home mortgages.  Other expenses
 increased 6.8% compared to last year.
     On December 27, 2000, Drovers signed an agreement to merge with Fulton
 Financial Corporation.  A special meeting of Drovers shareholders has been set
 for May 17, 2001 to vote on the merger.  The merger is expected to occur in
 the third quarter of 2001.
 
     This press release contains statements that constitute forward-looking
 statements (within the meaning of the Private Securities Litigation Reform Act
 of 1995), which involve significant risks and uncertainties.  Actual results
 may differ materially from the results discussed in these forward-looking
 statements.  Factors that may cause such a difference include, but are not
 limited to, general economic conditions; changes in interest rates; deposit
 flow, loan demand, real estate values and competition; changes in accounting
 or tax principles, policies or guidelines; changes in legislation or
 regulation and other economic competitive, government, regulatory and
 technological factors affecting the Company's operations, pricing, products
 and services.
 
 
                               Drovers Bancshares
                         Selected Financial Information
 
     (in thousands, except per share data)             Quarter ended
                                                         March 31,
                                                    2001            2000
     Balance Sheet (EOP):
     Investments                                 $218,312        $208,447
     Loans                                        510,618         484,471
     Reserve for loan losses                        5,672           3,941
     Total assets                                 827,455         748,548
 
     Deposits                                    $604,908        $532,337
     Short-term borrowings                         44,179          50,304
     Long-term borrowings                         110,033         108,669
     Accumulated other comprehensive income         1,062          (3,802)
     Total equity                                  58,290          51,410
 
     Balance Sheet (Average):
     Investments                                 $228,496        $215,662
     Loans                                        507,504         473,871
     Total interest-earning assets                749,124         690,125
     Total assets                                 799,269         729,250
 
     Demand deposits                               53,260          50,404
     Interest-bearing deposits                     51,194          52,532
     Savings deposits                             170,600         138,624
     Time deposits                                299,663         273,685
     Short-term borrowings                         46,928          48,972
     Long-term borrowings                         110,179         106,885
     Total interest-bearing liabilities           678,564         620,698
 
     Accumulated other comprehensive income           609          (3,763)
     Total equity                                  57,227          51,230
 
     Income Statement:
     Interest income                              $14,742         $13,467
     Interest expense                               8,780           7,603
       Net interest income                          5,962           5,864
     Provision for loan losses                        400           1,001
       Net interest income after provision          5,562           4,863
 
     Investment services and trust income             430             389
     Service charges on deposits                      543             506
     Securities gains                                  16            (191)
     Net gains on loan sales                          226              66
     Other income                                     470             309
       Total other income                           1,685           1,079
 
     Salaries and benefits                          2,624           2,447
     Occupancy                                        382             364
     Furniture and equipment                          421             381
     Marketing                                         83             127
     Supplies                                          97              98
     Other taxes                                      128             122
     Other                                            969             866
       Total other expenses                         4,704           4,405
 
     Income before taxes                            2,543           1,537
     Income taxes                                     460             130
       Net income                                  $2,083          $1,407
 
     Net income per share, basic                    $0.41           $0.28
     Net income per share, diluted                  $0.38           $0.28
     Dividends per share                            $0.13           $0.12
 
     Shares Outstanding:
     Shares outstanding, EOP                        5,133           5,055
     Average shares outstanding, basic*             5,100           5,046
     Average shares outstanding, diluted*           5,487           5,082
 
     Financial Ratios:
     Return on average assets                       1.06%           0.78%
     Return on average equity                      14.76%          11.05%
     Net interest margin, FTE                       3.31%           3.57%
 
     Loan Quality:
     Non-accrual loans                              2,403           6,165
     Accruing loans 90+ days overdue                    4               -
     Restructured loans and in compliance
      with modified terms                               -             284
     Other real estate owned                          396             150
       Total nonperforming assets                   2,803           6,599
     Impaired loans                                 1,353           4,007
     Net charge-offs                                   99             968
 
     * Adjusted for subsequent dividends
        and stock dividends.
 
 

SOURCE Drovers Bancshares Corporation
    YORK, Pa., April 11 /PRNewswire/ --
 Drovers Bancshares Corporation (Nasdaq:   DROV), parent of The Drovers &
 Mechanics Bank, reported first quarter 2001 net income of $2,083,000, an
 increase of $676,000 over last year.  Basic earnings per share were $0.41 for
 the first quarter of 2001 compared to $0.28 for the same period in 2000.
 Return on average equity was 14.76% and return on average assets was 1.06% for
 the first three months of 2001.
     Falling interest rates and a slowing economy began to impact growth in the
 first quarter.  Total loans grew $2,721,000, or 0.5%, since the end of 2000.
 During the same period, deposits grew $36,280,000, or 6.0%, as customers moved
 funds temporarily into more liquid short-term investments.
     In the past twelve months, total loans grew $26,147,000, or 5.4%.  The
 growth was funded by deposits, which grew $72,571,000, or 13.6% during the
 same period.  Total assets stood at $827,455,000 at March 31, 2001, up
 $78,907,000, or 10.5%, over the prior year.  The growth contributed to an
 increase in net interest income, which rose $98,000 compared to the first
 quarter of 2000.  Other income excluding securities gains (losses) increased
 $399,000, or 31.4%, due mainly to an increase in gains on loan sales caused by
 low interest rates and borrowers refinancing home mortgages.  Other expenses
 increased 6.8% compared to last year.
     On December 27, 2000, Drovers signed an agreement to merge with Fulton
 Financial Corporation.  A special meeting of Drovers shareholders has been set
 for May 17, 2001 to vote on the merger.  The merger is expected to occur in
 the third quarter of 2001.
 
     This press release contains statements that constitute forward-looking
 statements (within the meaning of the Private Securities Litigation Reform Act
 of 1995), which involve significant risks and uncertainties.  Actual results
 may differ materially from the results discussed in these forward-looking
 statements.  Factors that may cause such a difference include, but are not
 limited to, general economic conditions; changes in interest rates; deposit
 flow, loan demand, real estate values and competition; changes in accounting
 or tax principles, policies or guidelines; changes in legislation or
 regulation and other economic competitive, government, regulatory and
 technological factors affecting the Company's operations, pricing, products
 and services.
 
 
                               Drovers Bancshares
                         Selected Financial Information
 
     (in thousands, except per share data)             Quarter ended
                                                         March 31,
                                                    2001            2000
     Balance Sheet (EOP):
     Investments                                 $218,312        $208,447
     Loans                                        510,618         484,471
     Reserve for loan losses                        5,672           3,941
     Total assets                                 827,455         748,548
 
     Deposits                                    $604,908        $532,337
     Short-term borrowings                         44,179          50,304
     Long-term borrowings                         110,033         108,669
     Accumulated other comprehensive income         1,062          (3,802)
     Total equity                                  58,290          51,410
 
     Balance Sheet (Average):
     Investments                                 $228,496        $215,662
     Loans                                        507,504         473,871
     Total interest-earning assets                749,124         690,125
     Total assets                                 799,269         729,250
 
     Demand deposits                               53,260          50,404
     Interest-bearing deposits                     51,194          52,532
     Savings deposits                             170,600         138,624
     Time deposits                                299,663         273,685
     Short-term borrowings                         46,928          48,972
     Long-term borrowings                         110,179         106,885
     Total interest-bearing liabilities           678,564         620,698
 
     Accumulated other comprehensive income           609          (3,763)
     Total equity                                  57,227          51,230
 
     Income Statement:
     Interest income                              $14,742         $13,467
     Interest expense                               8,780           7,603
       Net interest income                          5,962           5,864
     Provision for loan losses                        400           1,001
       Net interest income after provision          5,562           4,863
 
     Investment services and trust income             430             389
     Service charges on deposits                      543             506
     Securities gains                                  16            (191)
     Net gains on loan sales                          226              66
     Other income                                     470             309
       Total other income                           1,685           1,079
 
     Salaries and benefits                          2,624           2,447
     Occupancy                                        382             364
     Furniture and equipment                          421             381
     Marketing                                         83             127
     Supplies                                          97              98
     Other taxes                                      128             122
     Other                                            969             866
       Total other expenses                         4,704           4,405
 
     Income before taxes                            2,543           1,537
     Income taxes                                     460             130
       Net income                                  $2,083          $1,407
 
     Net income per share, basic                    $0.41           $0.28
     Net income per share, diluted                  $0.38           $0.28
     Dividends per share                            $0.13           $0.12
 
     Shares Outstanding:
     Shares outstanding, EOP                        5,133           5,055
     Average shares outstanding, basic*             5,100           5,046
     Average shares outstanding, diluted*           5,487           5,082
 
     Financial Ratios:
     Return on average assets                       1.06%           0.78%
     Return on average equity                      14.76%          11.05%
     Net interest margin, FTE                       3.31%           3.57%
 
     Loan Quality:
     Non-accrual loans                              2,403           6,165
     Accruing loans 90+ days overdue                    4               -
     Restructured loans and in compliance
      with modified terms                               -             284
     Other real estate owned                          396             150
       Total nonperforming assets                   2,803           6,599
     Impaired loans                                 1,353           4,007
     Net charge-offs                                   99             968
 
     * Adjusted for subsequent dividends
        and stock dividends.
 
 SOURCE  Drovers Bancshares Corporation