Omega Earnings Up Nearly 7%

Apr 19, 2001, 01:00 ET from Omega Financial Corporation

    STATE COLLEGE, Pa., April 19 /PRNewswire/ -- First quarter earnings for
 Omega Financial Corporation (Nasdaq:   OMEF) have jumped nearly 7% over the same
 period last year, company officials said.
     (Photo:  http://www.newscom.com/cgi-bin/prnh/19990921/OMFCLOGO )
     David B. Lee, Omega Financial's chairman and chief executive officer,
 noted that the gain of $271,000 in net income, or 6.8%, was achieved despite
 uncertain economic conditions.
     "We are pleased to report these increased earnings, particularly at a time
 when our economy is challenged by recent events," Lee said.  "This strong
 performance throughout our affiliates provides a solid foundation for the
 remainder of the year and reaffirms our core strategies for achieving
 profitable growth."
     On a per-share basis, quarterly earnings rose even more strongly, Lee
 stated, noting that the $0.49 per share in basic earnings represents a 11.4%
 increase over the $0.44 reported for the first quarter of 2000.  Diluted
 earnings per share were $0.48, an 11.6% rise from $0.43.
     Common share dividends rose by 4.0% to $0.26 from $0.25.  Lee commented
 that Omega Financial has increased its dividend in 14 of the 15 years since
 the corporation's founding in 1986.
     In key profitability ratios, both the company's Return on Average Assets
 (ROA) and Return on Average Equity (ROE) improved.  ROA increased to 1.53%
 from 1.50%, a 2.0% gain, while ROE rose to 11.12% from 10.35%, representing
 7.4% climb.  Income from credit activities was up by 2.5%, finishing at
 $11.317 million, compared to $11.042 for first quarter 2000.
     During the quarter, the investment firm of Janney Montgomery Scott
 initiated coverage of Omega Financial stock, noting the company's history of
 delivering solid earnings.  In its announcement, Janney commented that Omega
 is "a conservatively managed institution distinguished by its track record of
 maintaining high capital levels and strong loan loss reserves while recording
 steady profits."
     The company also recently announced a share repurchase program to buy back
 up to 10% of its common stock.  Omega plans to use some of the stock purchased
 to fund employee stock options and stock purchase plans.  The Omega board
 approved the repurchase program to run through December 31 or until the 10%
 goal is reached.
     Lee also announced that Omega Bank is completing work on a new office in
 Bellefonte.  The Zion Road Office is scheduled to open this month.  The new
 facility, located in the Parkview Center, will be the bank's second in
 Bellefonte, joining its existing office at 137 North Allegheny Street.
     "We are enthusiastic about the opening of this new office.  The location
 is excellent in what we anticipate will be a high-traffic area.  The plaza is
 well-designed with good access and ample parking," Lee said.  "In addition to
 the added convenience of another office, customers will find the same
 excellent service that is a hallmark of all of our community offices."
     Omega Financial serves seven Central Pennsylvania counties through the
 offices of its affiliates -- Omega Bank, Penn Central National Bank and
 Hollidaysburg Trust Company.  Omega Financial Corporation news releases are
 available by fax 24 hours a day from Company News On-Call at 800-758-5804,
 extension 653250.  Quarterly and annual reports, a corporate profile, stock
 quotes and other financial data can be accessed via PR Newswire on the World
 Wide Web through the Omega Web site at http://www.omegafinancial.com.
     Selected financial highlights are summarized on the following page.
 
 
                   OMEGA FINANCIAL CORPORATION AND SUBSIDIARIES
                            CONSOLIDATED BALANCE SHEETS
                                  (In thousands)
 
                                                   March 31,      December 31,
     Assets                                          2001              2000
     Cash and due from banks                        $37,582           $40,340
 
     Interest bearing deposits with other
      financial institutions                          2,721             1,095
     Federal funds sold                              48,450            39,750
 
     Investment securities held to
      maturity                                        5,119             5,044
     Investment securities available for
      sale                                          242,560           237,335
 
     Total loans                                    767,904           752,108
       Less: Unearned discount                          (96)             (123)
                 Allowance for loan losses          (11,536)          (11,622)
     Net loans                                      756,272           740,363
 
     Premises and equipment, net                     14,607            14,284
     Other assets                                    35,620            35,625
     TOTAL ASSETS                                $1,142,931        $1,113,836
 
     Liabilities and Shareholders' Equity
     Deposits:
        Non-interest bearing                       $124,840          $129,444
        Interest bearing                            780,829           760,057
     Total deposits                                 905,669           889,501
 
     Short-term borrowings                           45,690            45,754
     Other liabilities                               23,926            12,463
     ESOP debt                                        3,306             3,369
     Long-term debt                                  12,980             6,895
     Other interest bearing liabilities                 634               650
     TOTAL LIABILITIES                              992,205           958,632
 
     TOTAL SHAREHOLDERS' EQUITY                     150,726           155,204
     TOTAL LIABILITIES AND SHAREHOLDERS'
      EQUITY                                     $1,142,931        $1,113,836
 
 
                   OMEGA FINANCIAL CORPORATION AND SUBSIDIARIES
                         CONSOLIDATED STATEMENTS OF INCOME
                         (In thousands, except share data)
 
                                                       Three Months Ended
                                                            March 31,
                                                     2001              2000
     Interest Income:
     Interest and fees on loans                     $15,857           $14,602
     Interest and dividends on investment
      securities                                      3,203             3,576
     Other interest income                              588               191
     TOTAL INTEREST INCOME                           19,648            18,369
 
     Interest Expense:
     Interest on deposits                             7,545             6,655
     Interest on short-term borrowings                  526               411
     Interest on long-term debt and
       other interest bearing liabilities               260               118
     TOTAL INTEREST EXPENSE                           8,331             7,184
 
     NET INTEREST INCOME                             11,317            11,185
     Provision for loan losses                           --               143
     INCOME FROM CREDIT ACTIVITIES                   11,317            11,042
 
     Other Income:
     Service fees on deposit accounts                   997               877
     Trust fees                                         887               903
     Gain on sale of loans and other
      assets                                             (9)              (29)
     Net gains on investment securities                  60                --
     Other                                            1,260             1,142
     TOTAL OTHER INCOME                               3,195             2,893
 
     Other Expense:
     Salaries and employee benefits                   4,880             4,747
     Net occupancy expense                              592               554
     Equipment expense                                  593               567
     Data processing service                            394               363
     Other                                            2,333             2,351
     TOTAL OTHER EXPENSE                              8,792             8,582
     Income before taxes                              5,720             5,353
     Income tax expense                               1,475             1,379
     NET INCOME                                      $4,245            $3,974
 
     Net income per common share:
        Basic                                          $.49              $.44
        Diluted                                        $.48              $.43
 
     Weighted average shares and
      equivalents:
        Basic                                     8,435,694         8,789,153
        Diluted                                   8,856,264         9,220,930
 
 
                    OMEGA FINANCIAL CORPORATION AND SUBSIDIARIES
                         CONSOLIDATED FINANCIAL HIGHLIGHTS
                                    (Unaudited)
                      (In thousands, except as indicated * )
 
 
                                                       For the Quarter
                                                2001         2000     % Change
 
     Earnings:
       Net income                               $4,245       $3,974      6.8%
 
     Per share statistics:
       Diluted earnings                           $.48         $.43     11.6
       Dividends declared - common                 .26          .25      4.0
       Dividends declared - preferred              .45          .45       --
       Book value - common                       17.82        17.00      4.8
       Market value - High                       29.50        29.38      0.4
                      Low                        23.75        23.00      3.3
 
     Financial position at March 31:
       Assets                               $1,142,931   $1,081,008      5.7%
       Deposits                                905,669      865,282      4.7
       Net loans                               756,272      702,348      7.7
       Shareholders' equity                    150,726      152,107     (0.9)
 
     Average Balances:
       Assets                               $1,108,293   $1,057,483      4.8%
       Deposits                                884,751      852,268      3.8
       Net loans                               749,698      699,245      7.2
       Shareholders' equity                    152,735      153,534     (0.5)
 
     Profitability ratios - annualized: *
       Return on average assets                   1.53%        1.50%     2.0%
       Return on average equity                  11.12        10.35      7.4
       Net interest margin - fully tax
        equivalent                                4.65         4.80     (3.1)
 
     Shares outstanding at March 31: *
       Common                                8,307,176    8,802,624     (5.6)%
       Preferred                               219,781      219,781       --
 
     Number of shareholders at March 31: *
       Common                                    2,609        2,771     (5.8)%
 
 
 

SOURCE Omega Financial Corporation
    STATE COLLEGE, Pa., April 19 /PRNewswire/ -- First quarter earnings for
 Omega Financial Corporation (Nasdaq:   OMEF) have jumped nearly 7% over the same
 period last year, company officials said.
     (Photo:  http://www.newscom.com/cgi-bin/prnh/19990921/OMFCLOGO )
     David B. Lee, Omega Financial's chairman and chief executive officer,
 noted that the gain of $271,000 in net income, or 6.8%, was achieved despite
 uncertain economic conditions.
     "We are pleased to report these increased earnings, particularly at a time
 when our economy is challenged by recent events," Lee said.  "This strong
 performance throughout our affiliates provides a solid foundation for the
 remainder of the year and reaffirms our core strategies for achieving
 profitable growth."
     On a per-share basis, quarterly earnings rose even more strongly, Lee
 stated, noting that the $0.49 per share in basic earnings represents a 11.4%
 increase over the $0.44 reported for the first quarter of 2000.  Diluted
 earnings per share were $0.48, an 11.6% rise from $0.43.
     Common share dividends rose by 4.0% to $0.26 from $0.25.  Lee commented
 that Omega Financial has increased its dividend in 14 of the 15 years since
 the corporation's founding in 1986.
     In key profitability ratios, both the company's Return on Average Assets
 (ROA) and Return on Average Equity (ROE) improved.  ROA increased to 1.53%
 from 1.50%, a 2.0% gain, while ROE rose to 11.12% from 10.35%, representing
 7.4% climb.  Income from credit activities was up by 2.5%, finishing at
 $11.317 million, compared to $11.042 for first quarter 2000.
     During the quarter, the investment firm of Janney Montgomery Scott
 initiated coverage of Omega Financial stock, noting the company's history of
 delivering solid earnings.  In its announcement, Janney commented that Omega
 is "a conservatively managed institution distinguished by its track record of
 maintaining high capital levels and strong loan loss reserves while recording
 steady profits."
     The company also recently announced a share repurchase program to buy back
 up to 10% of its common stock.  Omega plans to use some of the stock purchased
 to fund employee stock options and stock purchase plans.  The Omega board
 approved the repurchase program to run through December 31 or until the 10%
 goal is reached.
     Lee also announced that Omega Bank is completing work on a new office in
 Bellefonte.  The Zion Road Office is scheduled to open this month.  The new
 facility, located in the Parkview Center, will be the bank's second in
 Bellefonte, joining its existing office at 137 North Allegheny Street.
     "We are enthusiastic about the opening of this new office.  The location
 is excellent in what we anticipate will be a high-traffic area.  The plaza is
 well-designed with good access and ample parking," Lee said.  "In addition to
 the added convenience of another office, customers will find the same
 excellent service that is a hallmark of all of our community offices."
     Omega Financial serves seven Central Pennsylvania counties through the
 offices of its affiliates -- Omega Bank, Penn Central National Bank and
 Hollidaysburg Trust Company.  Omega Financial Corporation news releases are
 available by fax 24 hours a day from Company News On-Call at 800-758-5804,
 extension 653250.  Quarterly and annual reports, a corporate profile, stock
 quotes and other financial data can be accessed via PR Newswire on the World
 Wide Web through the Omega Web site at http://www.omegafinancial.com.
     Selected financial highlights are summarized on the following page.
 
 
                   OMEGA FINANCIAL CORPORATION AND SUBSIDIARIES
                            CONSOLIDATED BALANCE SHEETS
                                  (In thousands)
 
                                                   March 31,      December 31,
     Assets                                          2001              2000
     Cash and due from banks                        $37,582           $40,340
 
     Interest bearing deposits with other
      financial institutions                          2,721             1,095
     Federal funds sold                              48,450            39,750
 
     Investment securities held to
      maturity                                        5,119             5,044
     Investment securities available for
      sale                                          242,560           237,335
 
     Total loans                                    767,904           752,108
       Less: Unearned discount                          (96)             (123)
                 Allowance for loan losses          (11,536)          (11,622)
     Net loans                                      756,272           740,363
 
     Premises and equipment, net                     14,607            14,284
     Other assets                                    35,620            35,625
     TOTAL ASSETS                                $1,142,931        $1,113,836
 
     Liabilities and Shareholders' Equity
     Deposits:
        Non-interest bearing                       $124,840          $129,444
        Interest bearing                            780,829           760,057
     Total deposits                                 905,669           889,501
 
     Short-term borrowings                           45,690            45,754
     Other liabilities                               23,926            12,463
     ESOP debt                                        3,306             3,369
     Long-term debt                                  12,980             6,895
     Other interest bearing liabilities                 634               650
     TOTAL LIABILITIES                              992,205           958,632
 
     TOTAL SHAREHOLDERS' EQUITY                     150,726           155,204
     TOTAL LIABILITIES AND SHAREHOLDERS'
      EQUITY                                     $1,142,931        $1,113,836
 
 
                   OMEGA FINANCIAL CORPORATION AND SUBSIDIARIES
                         CONSOLIDATED STATEMENTS OF INCOME
                         (In thousands, except share data)
 
                                                       Three Months Ended
                                                            March 31,
                                                     2001              2000
     Interest Income:
     Interest and fees on loans                     $15,857           $14,602
     Interest and dividends on investment
      securities                                      3,203             3,576
     Other interest income                              588               191
     TOTAL INTEREST INCOME                           19,648            18,369
 
     Interest Expense:
     Interest on deposits                             7,545             6,655
     Interest on short-term borrowings                  526               411
     Interest on long-term debt and
       other interest bearing liabilities               260               118
     TOTAL INTEREST EXPENSE                           8,331             7,184
 
     NET INTEREST INCOME                             11,317            11,185
     Provision for loan losses                           --               143
     INCOME FROM CREDIT ACTIVITIES                   11,317            11,042
 
     Other Income:
     Service fees on deposit accounts                   997               877
     Trust fees                                         887               903
     Gain on sale of loans and other
      assets                                             (9)              (29)
     Net gains on investment securities                  60                --
     Other                                            1,260             1,142
     TOTAL OTHER INCOME                               3,195             2,893
 
     Other Expense:
     Salaries and employee benefits                   4,880             4,747
     Net occupancy expense                              592               554
     Equipment expense                                  593               567
     Data processing service                            394               363
     Other                                            2,333             2,351
     TOTAL OTHER EXPENSE                              8,792             8,582
     Income before taxes                              5,720             5,353
     Income tax expense                               1,475             1,379
     NET INCOME                                      $4,245            $3,974
 
     Net income per common share:
        Basic                                          $.49              $.44
        Diluted                                        $.48              $.43
 
     Weighted average shares and
      equivalents:
        Basic                                     8,435,694         8,789,153
        Diluted                                   8,856,264         9,220,930
 
 
                    OMEGA FINANCIAL CORPORATION AND SUBSIDIARIES
                         CONSOLIDATED FINANCIAL HIGHLIGHTS
                                    (Unaudited)
                      (In thousands, except as indicated * )
 
 
                                                       For the Quarter
                                                2001         2000     % Change
 
     Earnings:
       Net income                               $4,245       $3,974      6.8%
 
     Per share statistics:
       Diluted earnings                           $.48         $.43     11.6
       Dividends declared - common                 .26          .25      4.0
       Dividends declared - preferred              .45          .45       --
       Book value - common                       17.82        17.00      4.8
       Market value - High                       29.50        29.38      0.4
                      Low                        23.75        23.00      3.3
 
     Financial position at March 31:
       Assets                               $1,142,931   $1,081,008      5.7%
       Deposits                                905,669      865,282      4.7
       Net loans                               756,272      702,348      7.7
       Shareholders' equity                    150,726      152,107     (0.9)
 
     Average Balances:
       Assets                               $1,108,293   $1,057,483      4.8%
       Deposits                                884,751      852,268      3.8
       Net loans                               749,698      699,245      7.2
       Shareholders' equity                    152,735      153,534     (0.5)
 
     Profitability ratios - annualized: *
       Return on average assets                   1.53%        1.50%     2.0%
       Return on average equity                  11.12        10.35      7.4
       Net interest margin - fully tax
        equivalent                                4.65         4.80     (3.1)
 
     Shares outstanding at March 31: *
       Common                                8,307,176    8,802,624     (5.6)%
       Preferred                               219,781      219,781       --
 
     Number of shareholders at March 31: *
       Common                                    2,609        2,771     (5.8)%
 
 
 SOURCE  Omega Financial Corporation

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