UBAN Announces First Quarter Earnings

Apr 17, 2001, 01:00 ET from USBANCORP, Inc.

    JOHNSTOWN, Pa., April 17 /PRNewswire/ --  USBANCORP, Inc. (Nasdaq:   UBAN)
 today reported first quarter net income of $696,000 or $0.05 per share on a
 diluted basis which represents significant improvement over the $2.0 million
 net loss or ($0.15) per share reported in the fourth quarter of 2000.  For the
 first quarter of 2001, cash net income totaled $1.3 million or $0.10 per
 diluted share.  The first quarter 2001 results included a better than expected
 $250,000 pre-tax loss related to the wholesale mortgage production business
 which the Company has exited. (Comparisons in this press release are to the
 fourth quarter 2000 rather than first quarter 2000 because first quarter 2000
 results still included Three Rivers Bank which was spun-off on April 1, 2000.
 Therefore, comparisons to fourth quarter 2000 are more meaningful.)
     Improved asset quality was one highlight of the first quarter of 2001.
 The Company's total level of non-performing assets dropped from $6.0 million
 at December 31, 2000 to $5.2 million or 0.90% of total loans at March 31,
 2001.  The Company also continued to strengthen its allowance for loan losses
 as the first quarter 2001 provision for loan losses amounted to $315,000 or
 0.22% of total loans which exceeded net-charge-offs of $228,000 or 0.16% of
 total loans.  The Company's loan loss reserve coverage of non-performing
 assets improved to 117% at March 31, 2001 while the reserve as a percentage of
 total loans amounted to 1.05% for that same date.  The Company did experience
 a $15 million decline in total loans outstanding between the end of the fourth
 quarter 2000 and first quarter 2001, as the slowing economy has resulted in a
 decrease in loan applications which meet the Company's stringent credit
 underwriting criteria.
     The Company's total revenue grew by $451,000 between the fourth quarter
 2000 and first quarter 2001 as both net interest income and non-interest
 income increased for the period.  The growth in net interest income was due to
 a higher level of earning assets as the Company actively purchased investment
 securities early in the first quarter due to anticipated declines in interest
 rates during the year 2001.  This growth in investment securities more than
 offset the previously mentioned decline in total loans but contributed to a
 four basis point decrease in the net interest margin to 2.48%.  Non-interest
 income as a percentage of total revenue improved from 36.1% in the fourth
 quarter of 2000 to 37.8% in the first quarter of 2001.  The Company took
 advantage of the lower interest rate environment and generated $381,000 of
 gains on the sale of mortgage-backed securities that were projected to
 experience accelerated prepayments.  These investment security gains helped
 offset lower gains on mortgage loan sales resulting from the Company's exit
 from the wholesale mortgage production business.
     Non-interest expense totaled $10.3 million for the first quarter of 2001
 and decreased sharply on both an actual and core basis(core excludes fourth
 quarter 2000 wholesale mortgage production exit costs) from the non-interest
 expense levels reported in the fourth quarter of 2000. Almost every major
 expense category declined between the fourth quarter 2000 and first quarter
 2001. One of the larger expense declines of $269,000 occurred in salaries and
 employee benefits due in part to 13 fewer full time equivalent employees and
 reduced medical insurance costs.  The Company did record a $367,000 impairment
 charge on mortgage servicing rights due to accelerated prepayment speeds on
 mortgages resulting from the lower interest rate environment.  With the
 declines in interest rates, however, the Company has seen continued
 improvement in the value of its investment security portfolio. As a result of
 this improved security portfolio value, the Company's book value per share
 increased from $5.83 at December 31, 2000, to $5.94 at March 31, 2001.  At
 March 31, 2001, UBAN had total assets of $1.3 billion and shareholders' equity
 of $80 million.
     As previously disclosed in a January 12, 2001 press release, the Company
 projects a range of $0.32 to $0.36 for net income per share and a range of
 $0.48 to $0.52 for cash earnings per share for the year 2001.  The Company's
 first quarter performance met analyst expectations and reaffirmed the
 Company's commitment to the full year 2001 earnings ranges. The Company
 intends to maintain its quarterly common stock cash dividend at the current
 $0.09 per share; this dividend rate, based upon a current share price of
 $4.35, represents a strong 8.3% yield.
     Orlando B. Hanselman, Chairman, President and CEO of USBANCORP will host a
 conference call that will be webcast live over the Internet on April 25, 2001
 at 2:00 pm EST.  Mr. Hanselman will recap his presentation that will be made
 to shareholders at the Company's annual meeting that is scheduled for Tuesday
 April 24, 2001 and will also address the Company's first quarter financial
 results.  To listen live over the Internet to the webcast simply log on to
 http://www.videonewswire.com/USBANCORP/042501 or to participate in the
 conference call dial 800-903-0247 and use password UBAN.
     USBANCORP, a financial holding company (pursuant to the Gramm-Leach-Bliley
 Act), is the parent of U.S. Bank and USBANCORP Trust and Financial Services
 Company in Johnstown; Standard Mortgage Company in Atlanta, Georgia; UBAN
 Associates of State College; and United Bancorp Life Insurance Company in
 Arizona.  The Company's US Bank subsidiary also has retail mortgage operations
 based in Greensburg, State College, and Altoona.  USBANCORP's customer reach
 is extensive beyond its primary dominant market of Cambria and Somerset
 Counties.  Standard Mortgage Company has a mortgage servicing operation based
 in Atlanta, Georgia.  UBAN Associates, the consulting subsidiary, has clients
 in the financial services industry that are located in Pennsylvania, Ohio, and
 Michigan. USBANCORP Trust and Financial Services, with $1.3 billion of client
 assets under management, has union investor clients in Pennsylvania, Ohio,
 Michigan, West Virginia, and Indiana.
 
     This news release may contain forward-looking statements that involve
 risks and uncertainties, including the risks detailed in the Company's Annual
 Report and Form 10-K to the Securities and Exchange Commission as defined in
 the Private Securities Litigation Reform Act of 1995.  Actual results may
 differ materially.
 
 
                                Nasdaq NMS: UBAN
                  SUPPLEMENTAL FINANCIAL PERFORMANCE DATA (A)
                                 April 17, 2001
                (In thousands, except per share and ratio data)
                                      2001
 
 
     OPERATING PERFORMANCE DATA FOR THE PERIOD: (B)
     Operating earnings                                      $696
     Operating earnings per common share - diluted           0.05
     Return on average equity                               3.60%
     Return on average assets                                0.22
     Efficiency ratio                                       87.59
 
     PERFORMANCE DATA FOR THE PERIOD:
     Net interest income                                   $7,115
     Net interest income tax equivalency adjustment           269
     Net income                                               696
 
     PERFORMANCE PERCENTAGES (annualized):
     Return on average equity                               3.60%
     Return on average assets                                0.22
     Net interest margin                                     2.48
     Net charge-offs as a percentage of average loans        0.16
     Loan loss provision as a percentage of average loans    0.22
     Net overhead expense as a percentage of tax
      equivalent net interest income                        80.31
     Efficiency ratio                                       87.59
 
     PER COMMON SHARE:
     Net income:
     Basic                                                  $0.05
     Average number of common shares                   13,495,422
     Diluted                                                 0.05
     Average number of common shares                   13,497,986
     Cash dividends declared                                 0.09
 
     CASH OPERATING PERFORMANCE RESULTS: (C)
     Operating earnings                                    $1,307
     Diluted earnings per share                              0.10
     Return on average equity                               6.78%
     Efficiency ratio                                       81.76
 
 
 
                                                 2000
                       1QTR         2QTR        3QTR        4QTR       YEAR
     OPERATING
      PERFORMANCE
      DATA FOR
      THE PERIOD:
      (B)
     Operating
      earnings (Loss) $3,121      $1,414       $1,283      $(1,958)    $3,860
     Operating
      earnings (Loss)
      per common share
      - diluted         0.23        0.11         0.10        (0.15)      0.29
     Return on
     average equity   11.06%       8.41%        7.27%       (10.47)%    4.74%
     Return on
      average assets    0.52        0.43         0.40        (0.63)      0.25
     Efficiency ratio  82.36       81.75        81.95       112.34      88.21
 
     PERFORMANCE DATA
      FOR THE PERIOD:
     Net interest
      income         $15,359        $7,738     $7,338       $7,024    $37,459
     Net interest
      income tax
      equivalency
      adjustment         657           368        360          303      1,688
     Net income
     (Loss)            2,611            10      1,053       (1,958)     1,716
 
     PERFORMANCE
      PERCENTAGES
      (annualized):
     Return on average
      equity           9.26%         0.06%       5.97%     (10.47)%     2.11%
     Return on
      average assets    0.43             -        0.33      (0.63)       0.11
     Net interest
      margin            2.75         2.60        2.54        2.52        2.63
     Net charge-offs
      as a percentage
      of average loans  0.06         0.18        0.14        0.57        0.21
     Loan loss
      provision as a
      percentage of
      average loans     0.09         0.11        0.16        0.96        0.29
     Net overhead
      expense as a
      percentage of tax
      equivalent net
      interest income  81.77        92.22       75.77      119.03       89.73
     Efficiency ratio  85.34        94.91       84.64      112.34       92.79
 
     PER COMMON SHARE:
     Net income
      (Loss):
     Basic             $0.20          $-        $0.08      $(0.15)      $0.13
     Average number
      of common
      shares      13,318,966  13,331,915   13,387,576  13,442,269  13,370,426
     Diluted            0.20           -         0.08       (0.15)       0.13
     Average number
      of common
      shares      13,330,006  13,333,903   13,387,923  13,443,160  13,373,560
     Cash dividends
      declared          0.15        0.09         0.09        0.09        0.42
 
     CASH OPERATING
      PERFORMANCE
      RESULTS: (C)
     Operating
      earnings (Loss) $3,779      $1,995       $1,867    $(1,381)      $6,260
     Diluted earnings
      per share         0.28        0.15         0.14      (0.10)        0.47
     Return on
      average equity  13.54%      11.86%       10.70%       (7.37)%     7.69%
     Efficiency ratio  78.39       76.16        76.27      106.29       83.08
 
     NOTES:
     (A) All quarterly data unaudited.
     (B) For the year 2000, operating performance data excludes non-recurring
 spin-off costs which amounted on an after-tax basis to $500,000 in the first
 quarter, $1.4 million in the second quarter, and $230,000 in the third quarter
 and totaled $2.1 million for the full year.
     (C) Cash performance results exclude amortization related to goodwill and
 core deposit intangibles which, except in the calculation of the efficiency
 ratio, are net of applicable income tax effects.
 
 
                                USBANCORP, INC.
         (In thousands, except per share, statistical, and ratio data)
 
                                                      2001
                                                      1QTR
     PERFORMANCE DATA AT PERIOD END
     Assets                                        $1,297,811
     Investment securities                            624,226
     Loans                                            572,613
     Loans held for sale                                2,934
     Allowance for loan losses                          6,023
     Good will and core deposit intangibles            19,375
     Deposits                                         657,944
     Stockholders' equity                              80,211
     Trust assets                                   1,274,667
     Non-performing assets (C)                          5,158
     Asset leverage ratio                               6.63%
     PER COMMON SHARE:
     Book value (A)                                     $5.94
     Market value                                        4.56
     Market price to book value                        76.80%
 
     STATISTICAL DATA AT PERIOD END:
     Full-time equivalent employees                       464
     Branch locations                                      23
     Common shareholders                                5,100
     Common shares outstanding                     13,502,693
 
 
 
                                                2000
                        1QTR     Pro forma(B)  2QTR        3QTR        4QTR
     PERFORMANCE DATA              1QTR
      AT PERIOD END
     Assets        $2,337,462  $1,338,518  $1,299,798  $1,269,343 $1,254,261
     Investment
      securities    1,066,183     600,732     577,911     551,476    550,232
     Loans          1,082,006     605,582     597,195     595,929    580,634
     Loans held
      for sale         17,704      17,704      17,310      16,041      9,637
     Allowance for
      loan losses      10,446       5,419       5,313       5,358      5,936
     Goodwill and
      core deposit
      intangibles      24,863      22,124      21,431      20,741     20,058
     Deposits       1,237,238     667,340     666,999     653,886    659,064
     Stockholders'
      equity          113,166      67,991      68,544      73,354     78,407
     Trust assets   1,439,062   1,439,062   1,408,099   1,433,001  1,356,109
     Non-performing
      assets (C)       12,602       3,895       4,097       6,596      5,961
     Asset leverage
      ratio             6.47%       6.07%       6.67%       6.65%      6.69%
     PER COMMON SHARE:
     Book value (A)     $8.49       $5.10       $5.14       $5.47      $5.83
     Market value       11.25         N/A        3.56        3.91       4.25
     Market price
      to book
      value           132.51%         N/A      69.32%      71.41%     72.90%
 
     STATISTICAL DATA
      AT PERIOD END:
     Full-time
      equivalent
      employees           734         483         473         479        477
     Branch locations      44          21          21          22         22
     Common
      shareholders      5,190       5,190       5,153       5,145      5,130
     Common shares
      outstanding  13,328,741  13,328,741  13,337,865  13,399,536 13,451,805
 
     NOTES:
 
     (A) Other comprehensive income had a negative impact of $0.13 on book
         value per share at March 31, 2001.
     (B) Pro forma results exclude Three Rivers Bank which was spun-off on
         April 1, 2000.
     (C) At March 31, 2001, $3.1 million or 60% of the total non-performing
        assets related to one commercial lease for which specific allocations
        within the loan loss reserve amounting to approximately $900,000 had
        been established.  The remaining non-performing assets are primarily
        residential mortgages which have historically experienced low levels
        of net charge-offs.
 
 
                                USBANCORP, INC.
                                Nasdaq NMS: UBAN
                   Average Balance Sheet Data (In thousands)
                           (Quarterly Data Unaudited)
 
     Note:  2000 data appears before 2001.
 
                                                     2000             2001
                                                     THREE            THREE
                                                    MONTHS           MONTHS
     Interest earning assets:
     Loans and loans held for sale,
      net of unearned income                       $1,084,386       $568,364
     Deposits with banks                                7,066         11,954
     Federal funds sold                                     -            516
     Total investment securities                    1,209,988        588,867
 
     Total interest earning assets                  2,301,440      1,169,701
 
     Non-interest earning assets:
     Cash and due from banks                           37,318         21,768
     Premises and equipment                            18,876         13,412
     Other assets                                      72,709         66,681
     Allowance for loan losses                        (10,420)        (6,028)
 
     Total assets                                  $2,419,923     $1,265,534
 
     Interest bearing liabilities:
     Interest bearing deposits:
     Interest bearing demand                          $90,686        $46,564
     Savings                                          163,498         91,433
     Money market                                     179,651        137,421
     Other time                                       635,968        298,921
     Total interest bearing deposits                1,069,803        574,339
     Borrowings:
     Federal funds purchased, securities
      sold under agreements to repurchase,
      and other short-term borrowings                 181,664         51,188
     Advanced from Federal Home Loan Bank             822,331        425,732
     Guaranteed junior subordinated
      deferrable interest debentures                   34,500         34,500
     Long-term debt                                     6,697          1,332
     Total interest bearing liabilities             2,114,995      1,087,091
 
     Non-interest bearing liabilities:
     Demand deposits                                  167,278         85,404
     Other liabilities                                 24,187         14,645
     Stockholders' equity                             113,463         78,394
     Total liabilities and stockholders' equity    $2,419,923     $1,265,534
 
 
                                USBANCORP, INC.
                        CONSOLIDATED STATEMENT OF INCOME
                                 (In thousands)
                           (Quarterly data unaudited)
                                                          2001
 
     INTEREST INCOME                                       1QTR
     Interest and fees on loans                         $11,699
     Total investment portfolio                           9,475
     Total Interest Income                               21,174
 
     INTEREST EXPENSE
     Deposits                                             5,970
     All other funding sources                            8,089
     Total Interest Expense                              14,059
 
     NET INTEREST INCOME                                  7,115
     Provision for loan losses                              315
     NET INTEREST INCOME AFTER
      PROVISION FOR LOAN LOSSES                           6,800
 
     NON-INTEREST INCOME
     Trust fees                                           1,247
     Net realized gains(losses) on investment
      securities available for sale                         381
     Net realized gains on loans
      and loans held for sale                               176
     Service charges on deposit accounts                    465
     Net mortgage servicing fees                            121
     Bank owned life insurance                              313
     Other income                                         1,627
     Total Non-interest Income                            4,330
 
     NON-INTEREST EXPENSE
     Salaries and employee benefits                       4,847
     Net occupancy expense                                  751
     Equipment expense                                      812
     Professional fees                                      683
     FDIC deposit insurance expense                          31
     Amortization of goodwill and
      core deposit intangibles                              683
     Impairment charge (credit)
      for mortgage servicing rights                         367
     Other expenses                                       2,086
     Total Non-interest Expense                          10,260
 
     INCOME BEFORE INCOME TAXES                             870
     Provision for income taxes                             174
     NET INCOME                                            $696
 
 
     OPERATING EARNINGS (A)                                $696
 
 
      2000
     INTEREST INCOME     1QTR       2QTR        3QTR       4QTR       YEAR
     Interest and fees
      on loans         $22,333    $12,612      $12,510    $12,318    $59,773
     Total investment
      portfolio         19,139      9,761        9,529      9,096     47,525
     Total Interest
      Income            41,472     22,373       22,039     21,414    107,298
 
     INTEREST EXPENSE
     Deposits           10,838      5,875        6,203      6,353     29,269
     All other
      funding sources   15,275      8,760        8,498      8,037     40,570
     Total Interest
      Expense           26,113     14,635       14,701     14,390     69,839
 
     NET INTEREST
      INCOME            15,359      7,738        7,338      7,024     37,459
     Provision for
      loan losses          249        174          249      1,424      2,096
     NET INTEREST
      INCOME AFTER
      PROVISION FOR
      LOAN LOSSES       15,110      7,564        7,089      5,600     35,363
 
     NON-INTEREST
      INCOME
     Trust fees          1,324      1,232        1,257      1,245      5,058
     Net realized
      gains(losses)
      on investment
      securities
      available for
      sale                (889)       (17)         (30)       (16)      (952)
     Net realized
      gains on loans
      and loans
      held for sale        308        423          706        327      1,764
     Wholesale cash
      processing fees      120          -            -          -        120
     Service charges
      on deposit
      accounts             870        455          436        461      2,222
     Net mortgage
      servicing fees       190        243          251        170        854
     Bank owned
      life insurance       437        289          299        283      1,308
     Other income        1,541      1,666        1,528      1,500      6,235
     Total
      Non-interest
      Income             3,901      4,291        4,447      3,970     16,609
 
     NON-INTEREST
      EXPENSE
     Salaries and
      employee
      benefits           8,184      5,073        4,932      5,116     23,305
     Net occupancy
      expense            1,288        692          681        754      3,415
     Equipment expense   1,154        795          777        823      3,549
     Professional fees     865        582          607        777      2,831
     FDIC deposit
      insurance expense     62         34           33         33        162
     Amortization
      of goodwill
      and core
      deposit intangibles  792        693          690        683      2,858
     Impairment charge
     (credit) for
      mortgage servicing
      rights               (55)         -            -        394        339
     Spin-off costs        593      1,632          327          -      2,552
     Wholesale mortgage
      production exit
      costs                  -          -            -      1,498      1,498
     Other expenses      4,114      2,265        2,233      2,613     11,225
     Total
      Non-interest
      Expense           16,997     11,766       10,280     12,691     51,734
 
     INCOME (LOSS)
      BEFORE INCOME
      TAXES              2,014         89        1,256     (3,121)       238
     Provision
      (benefit) for
      income taxes        (597)        79          203     (1,163)    (1,478)
     NET INCOME (LOSS)  $2,611        $10       $1,053    $(1,958)    $1,716
 
 
     OPERATING
      EARNINGS
      (LOSS) (A)        $3,121     $1,414       $1,283    $(1,958)    $3,860
 
     (A) Operating earnings exclude non-recurring spin-off costs.
 
 
                                USBANCORP, INC.
                                  PRO FORMA(A)
                        CONSOLIDATED STATEMENT OF INCOME
                                 (In thousands)
                           (Quarterly data unaudited)
 
 
     2000
     INTEREST INCOME   1QTR(A)      2QTR        3QTR      4QTR     YEAR(A)
     Interest and fees
      on loans        $12,606      $12,612    $12,510   $12,318   $50,046
     Total investment
      portfolio        10,766        9,761      9,529     9,096    39,152
     Total Interest
      Income           23,372       22,373     22,039    21,414    89,198
 
     INTEREST EXPENSE
     Deposits           5,764        5,875      6,203     6,353    24,195
     All other
      funding sources   9,338        8,760      8,498     8,037    34,633
     Total Interest
      Expense          15,102       14,635     14,701    14,390    58,828
 
     NET INTEREST
      INCOME            8,270        7,738      7,338     7,024    30,370
     Provision for
      loan losses          99          174        249     1,424     1,946
     NET INTEREST
      INCOME AFTER
      PROVISION FOR
      LOAN LOSSES       8,171        7,564      7,089     5,600    28,424
 
     NON-INTEREST
      INCOME
     Trust fees         1,249        1,232      1,257     1,245     4,983
     Net realized
      gains(losses)
      on investment
      securities
      available
      for sale           (387)         (17)       (30)      (16)     (450)
     Net realized
      gains on loans
      and loans held
      for sale            322          423        706       327     1,778
     Service charges
      on deposit accounts 428          455        436       461     1,780
     Net mortgage
      servicing fees      190          243        251       170       854
     Bank owned
      life insurance      291          289        299       283     1,162
     Other income       1,185        1,666      1,528     1,500     5,879
     Total Non-interest
      Income            3,278        4,291      4,447     3,970    15,986
 
     NON-INTEREST EXPENSE
     Salaries and
      employee benefits 5,672        5,073      4,932     5,116    20,793
     Net occupancy
      expense             753          692        681       754     2,880
     Equipment expense    746          795        777       823     3,141
     Professional fees    598          582        607       777     2,564
     FDIC deposit
      insurance expense    34           34         33        33       134
     Amortization of
      goodwill and
      core deposit
      intangibles         693          693        690       683     2,759
     Impairment charge
      (credit) for
      mortgage servicing
      rights              (55)           -          -       394       339
     Spin-off costs       135        1,632        327         -     2,094
     Wholesale mortgage
      production exit
      costs                 -            -          -     1,498     1,498
     Other expenses     1,832        2,265      2,233     2,613     8,943
     Total
      Non-interest
      Expense          10,408       11,766     10,280    12,691    45,145
 
     INCOME (LOSS)
      BEFORE INCOME
      TAXES             1,041           89      1,256    (3,121)     (735)
     Provision
      (benefit) for
      income taxes       (120)          79        203    (1,163)   (1,001)
     NET INCOME (LOSS) $1,161          $10     $1,053   $(1,958)     $266
 
 
     OPERATING
      EARNINGS
      (LOSS) (B)       $1,277       $1,414     $1,283   $(1,958)   $2,016
 
     (A) Pro forma financial data excludes Three Rivers Bank which was spun-
         off on April 1, 2000.
     (B) Operating earnings exclude non-recurring spin-off costs.
 
 

SOURCE USBANCORP, Inc.
    JOHNSTOWN, Pa., April 17 /PRNewswire/ --  USBANCORP, Inc. (Nasdaq:   UBAN)
 today reported first quarter net income of $696,000 or $0.05 per share on a
 diluted basis which represents significant improvement over the $2.0 million
 net loss or ($0.15) per share reported in the fourth quarter of 2000.  For the
 first quarter of 2001, cash net income totaled $1.3 million or $0.10 per
 diluted share.  The first quarter 2001 results included a better than expected
 $250,000 pre-tax loss related to the wholesale mortgage production business
 which the Company has exited. (Comparisons in this press release are to the
 fourth quarter 2000 rather than first quarter 2000 because first quarter 2000
 results still included Three Rivers Bank which was spun-off on April 1, 2000.
 Therefore, comparisons to fourth quarter 2000 are more meaningful.)
     Improved asset quality was one highlight of the first quarter of 2001.
 The Company's total level of non-performing assets dropped from $6.0 million
 at December 31, 2000 to $5.2 million or 0.90% of total loans at March 31,
 2001.  The Company also continued to strengthen its allowance for loan losses
 as the first quarter 2001 provision for loan losses amounted to $315,000 or
 0.22% of total loans which exceeded net-charge-offs of $228,000 or 0.16% of
 total loans.  The Company's loan loss reserve coverage of non-performing
 assets improved to 117% at March 31, 2001 while the reserve as a percentage of
 total loans amounted to 1.05% for that same date.  The Company did experience
 a $15 million decline in total loans outstanding between the end of the fourth
 quarter 2000 and first quarter 2001, as the slowing economy has resulted in a
 decrease in loan applications which meet the Company's stringent credit
 underwriting criteria.
     The Company's total revenue grew by $451,000 between the fourth quarter
 2000 and first quarter 2001 as both net interest income and non-interest
 income increased for the period.  The growth in net interest income was due to
 a higher level of earning assets as the Company actively purchased investment
 securities early in the first quarter due to anticipated declines in interest
 rates during the year 2001.  This growth in investment securities more than
 offset the previously mentioned decline in total loans but contributed to a
 four basis point decrease in the net interest margin to 2.48%.  Non-interest
 income as a percentage of total revenue improved from 36.1% in the fourth
 quarter of 2000 to 37.8% in the first quarter of 2001.  The Company took
 advantage of the lower interest rate environment and generated $381,000 of
 gains on the sale of mortgage-backed securities that were projected to
 experience accelerated prepayments.  These investment security gains helped
 offset lower gains on mortgage loan sales resulting from the Company's exit
 from the wholesale mortgage production business.
     Non-interest expense totaled $10.3 million for the first quarter of 2001
 and decreased sharply on both an actual and core basis(core excludes fourth
 quarter 2000 wholesale mortgage production exit costs) from the non-interest
 expense levels reported in the fourth quarter of 2000. Almost every major
 expense category declined between the fourth quarter 2000 and first quarter
 2001. One of the larger expense declines of $269,000 occurred in salaries and
 employee benefits due in part to 13 fewer full time equivalent employees and
 reduced medical insurance costs.  The Company did record a $367,000 impairment
 charge on mortgage servicing rights due to accelerated prepayment speeds on
 mortgages resulting from the lower interest rate environment.  With the
 declines in interest rates, however, the Company has seen continued
 improvement in the value of its investment security portfolio. As a result of
 this improved security portfolio value, the Company's book value per share
 increased from $5.83 at December 31, 2000, to $5.94 at March 31, 2001.  At
 March 31, 2001, UBAN had total assets of $1.3 billion and shareholders' equity
 of $80 million.
     As previously disclosed in a January 12, 2001 press release, the Company
 projects a range of $0.32 to $0.36 for net income per share and a range of
 $0.48 to $0.52 for cash earnings per share for the year 2001.  The Company's
 first quarter performance met analyst expectations and reaffirmed the
 Company's commitment to the full year 2001 earnings ranges. The Company
 intends to maintain its quarterly common stock cash dividend at the current
 $0.09 per share; this dividend rate, based upon a current share price of
 $4.35, represents a strong 8.3% yield.
     Orlando B. Hanselman, Chairman, President and CEO of USBANCORP will host a
 conference call that will be webcast live over the Internet on April 25, 2001
 at 2:00 pm EST.  Mr. Hanselman will recap his presentation that will be made
 to shareholders at the Company's annual meeting that is scheduled for Tuesday
 April 24, 2001 and will also address the Company's first quarter financial
 results.  To listen live over the Internet to the webcast simply log on to
 http://www.videonewswire.com/USBANCORP/042501 or to participate in the
 conference call dial 800-903-0247 and use password UBAN.
     USBANCORP, a financial holding company (pursuant to the Gramm-Leach-Bliley
 Act), is the parent of U.S. Bank and USBANCORP Trust and Financial Services
 Company in Johnstown; Standard Mortgage Company in Atlanta, Georgia; UBAN
 Associates of State College; and United Bancorp Life Insurance Company in
 Arizona.  The Company's US Bank subsidiary also has retail mortgage operations
 based in Greensburg, State College, and Altoona.  USBANCORP's customer reach
 is extensive beyond its primary dominant market of Cambria and Somerset
 Counties.  Standard Mortgage Company has a mortgage servicing operation based
 in Atlanta, Georgia.  UBAN Associates, the consulting subsidiary, has clients
 in the financial services industry that are located in Pennsylvania, Ohio, and
 Michigan. USBANCORP Trust and Financial Services, with $1.3 billion of client
 assets under management, has union investor clients in Pennsylvania, Ohio,
 Michigan, West Virginia, and Indiana.
 
     This news release may contain forward-looking statements that involve
 risks and uncertainties, including the risks detailed in the Company's Annual
 Report and Form 10-K to the Securities and Exchange Commission as defined in
 the Private Securities Litigation Reform Act of 1995.  Actual results may
 differ materially.
 
 
                                Nasdaq NMS: UBAN
                  SUPPLEMENTAL FINANCIAL PERFORMANCE DATA (A)
                                 April 17, 2001
                (In thousands, except per share and ratio data)
                                      2001
 
 
     OPERATING PERFORMANCE DATA FOR THE PERIOD: (B)
     Operating earnings                                      $696
     Operating earnings per common share - diluted           0.05
     Return on average equity                               3.60%
     Return on average assets                                0.22
     Efficiency ratio                                       87.59
 
     PERFORMANCE DATA FOR THE PERIOD:
     Net interest income                                   $7,115
     Net interest income tax equivalency adjustment           269
     Net income                                               696
 
     PERFORMANCE PERCENTAGES (annualized):
     Return on average equity                               3.60%
     Return on average assets                                0.22
     Net interest margin                                     2.48
     Net charge-offs as a percentage of average loans        0.16
     Loan loss provision as a percentage of average loans    0.22
     Net overhead expense as a percentage of tax
      equivalent net interest income                        80.31
     Efficiency ratio                                       87.59
 
     PER COMMON SHARE:
     Net income:
     Basic                                                  $0.05
     Average number of common shares                   13,495,422
     Diluted                                                 0.05
     Average number of common shares                   13,497,986
     Cash dividends declared                                 0.09
 
     CASH OPERATING PERFORMANCE RESULTS: (C)
     Operating earnings                                    $1,307
     Diluted earnings per share                              0.10
     Return on average equity                               6.78%
     Efficiency ratio                                       81.76
 
 
 
                                                 2000
                       1QTR         2QTR        3QTR        4QTR       YEAR
     OPERATING
      PERFORMANCE
      DATA FOR
      THE PERIOD:
      (B)
     Operating
      earnings (Loss) $3,121      $1,414       $1,283      $(1,958)    $3,860
     Operating
      earnings (Loss)
      per common share
      - diluted         0.23        0.11         0.10        (0.15)      0.29
     Return on
     average equity   11.06%       8.41%        7.27%       (10.47)%    4.74%
     Return on
      average assets    0.52        0.43         0.40        (0.63)      0.25
     Efficiency ratio  82.36       81.75        81.95       112.34      88.21
 
     PERFORMANCE DATA
      FOR THE PERIOD:
     Net interest
      income         $15,359        $7,738     $7,338       $7,024    $37,459
     Net interest
      income tax
      equivalency
      adjustment         657           368        360          303      1,688
     Net income
     (Loss)            2,611            10      1,053       (1,958)     1,716
 
     PERFORMANCE
      PERCENTAGES
      (annualized):
     Return on average
      equity           9.26%         0.06%       5.97%     (10.47)%     2.11%
     Return on
      average assets    0.43             -        0.33      (0.63)       0.11
     Net interest
      margin            2.75         2.60        2.54        2.52        2.63
     Net charge-offs
      as a percentage
      of average loans  0.06         0.18        0.14        0.57        0.21
     Loan loss
      provision as a
      percentage of
      average loans     0.09         0.11        0.16        0.96        0.29
     Net overhead
      expense as a
      percentage of tax
      equivalent net
      interest income  81.77        92.22       75.77      119.03       89.73
     Efficiency ratio  85.34        94.91       84.64      112.34       92.79
 
     PER COMMON SHARE:
     Net income
      (Loss):
     Basic             $0.20          $-        $0.08      $(0.15)      $0.13
     Average number
      of common
      shares      13,318,966  13,331,915   13,387,576  13,442,269  13,370,426
     Diluted            0.20           -         0.08       (0.15)       0.13
     Average number
      of common
      shares      13,330,006  13,333,903   13,387,923  13,443,160  13,373,560
     Cash dividends
      declared          0.15        0.09         0.09        0.09        0.42
 
     CASH OPERATING
      PERFORMANCE
      RESULTS: (C)
     Operating
      earnings (Loss) $3,779      $1,995       $1,867    $(1,381)      $6,260
     Diluted earnings
      per share         0.28        0.15         0.14      (0.10)        0.47
     Return on
      average equity  13.54%      11.86%       10.70%       (7.37)%     7.69%
     Efficiency ratio  78.39       76.16        76.27      106.29       83.08
 
     NOTES:
     (A) All quarterly data unaudited.
     (B) For the year 2000, operating performance data excludes non-recurring
 spin-off costs which amounted on an after-tax basis to $500,000 in the first
 quarter, $1.4 million in the second quarter, and $230,000 in the third quarter
 and totaled $2.1 million for the full year.
     (C) Cash performance results exclude amortization related to goodwill and
 core deposit intangibles which, except in the calculation of the efficiency
 ratio, are net of applicable income tax effects.
 
 
                                USBANCORP, INC.
         (In thousands, except per share, statistical, and ratio data)
 
                                                      2001
                                                      1QTR
     PERFORMANCE DATA AT PERIOD END
     Assets                                        $1,297,811
     Investment securities                            624,226
     Loans                                            572,613
     Loans held for sale                                2,934
     Allowance for loan losses                          6,023
     Good will and core deposit intangibles            19,375
     Deposits                                         657,944
     Stockholders' equity                              80,211
     Trust assets                                   1,274,667
     Non-performing assets (C)                          5,158
     Asset leverage ratio                               6.63%
     PER COMMON SHARE:
     Book value (A)                                     $5.94
     Market value                                        4.56
     Market price to book value                        76.80%
 
     STATISTICAL DATA AT PERIOD END:
     Full-time equivalent employees                       464
     Branch locations                                      23
     Common shareholders                                5,100
     Common shares outstanding                     13,502,693
 
 
 
                                                2000
                        1QTR     Pro forma(B)  2QTR        3QTR        4QTR
     PERFORMANCE DATA              1QTR
      AT PERIOD END
     Assets        $2,337,462  $1,338,518  $1,299,798  $1,269,343 $1,254,261
     Investment
      securities    1,066,183     600,732     577,911     551,476    550,232
     Loans          1,082,006     605,582     597,195     595,929    580,634
     Loans held
      for sale         17,704      17,704      17,310      16,041      9,637
     Allowance for
      loan losses      10,446       5,419       5,313       5,358      5,936
     Goodwill and
      core deposit
      intangibles      24,863      22,124      21,431      20,741     20,058
     Deposits       1,237,238     667,340     666,999     653,886    659,064
     Stockholders'
      equity          113,166      67,991      68,544      73,354     78,407
     Trust assets   1,439,062   1,439,062   1,408,099   1,433,001  1,356,109
     Non-performing
      assets (C)       12,602       3,895       4,097       6,596      5,961
     Asset leverage
      ratio             6.47%       6.07%       6.67%       6.65%      6.69%
     PER COMMON SHARE:
     Book value (A)     $8.49       $5.10       $5.14       $5.47      $5.83
     Market value       11.25         N/A        3.56        3.91       4.25
     Market price
      to book
      value           132.51%         N/A      69.32%      71.41%     72.90%
 
     STATISTICAL DATA
      AT PERIOD END:
     Full-time
      equivalent
      employees           734         483         473         479        477
     Branch locations      44          21          21          22         22
     Common
      shareholders      5,190       5,190       5,153       5,145      5,130
     Common shares
      outstanding  13,328,741  13,328,741  13,337,865  13,399,536 13,451,805
 
     NOTES:
 
     (A) Other comprehensive income had a negative impact of $0.13 on book
         value per share at March 31, 2001.
     (B) Pro forma results exclude Three Rivers Bank which was spun-off on
         April 1, 2000.
     (C) At March 31, 2001, $3.1 million or 60% of the total non-performing
        assets related to one commercial lease for which specific allocations
        within the loan loss reserve amounting to approximately $900,000 had
        been established.  The remaining non-performing assets are primarily
        residential mortgages which have historically experienced low levels
        of net charge-offs.
 
 
                                USBANCORP, INC.
                                Nasdaq NMS: UBAN
                   Average Balance Sheet Data (In thousands)
                           (Quarterly Data Unaudited)
 
     Note:  2000 data appears before 2001.
 
                                                     2000             2001
                                                     THREE            THREE
                                                    MONTHS           MONTHS
     Interest earning assets:
     Loans and loans held for sale,
      net of unearned income                       $1,084,386       $568,364
     Deposits with banks                                7,066         11,954
     Federal funds sold                                     -            516
     Total investment securities                    1,209,988        588,867
 
     Total interest earning assets                  2,301,440      1,169,701
 
     Non-interest earning assets:
     Cash and due from banks                           37,318         21,768
     Premises and equipment                            18,876         13,412
     Other assets                                      72,709         66,681
     Allowance for loan losses                        (10,420)        (6,028)
 
     Total assets                                  $2,419,923     $1,265,534
 
     Interest bearing liabilities:
     Interest bearing deposits:
     Interest bearing demand                          $90,686        $46,564
     Savings                                          163,498         91,433
     Money market                                     179,651        137,421
     Other time                                       635,968        298,921
     Total interest bearing deposits                1,069,803        574,339
     Borrowings:
     Federal funds purchased, securities
      sold under agreements to repurchase,
      and other short-term borrowings                 181,664         51,188
     Advanced from Federal Home Loan Bank             822,331        425,732
     Guaranteed junior subordinated
      deferrable interest debentures                   34,500         34,500
     Long-term debt                                     6,697          1,332
     Total interest bearing liabilities             2,114,995      1,087,091
 
     Non-interest bearing liabilities:
     Demand deposits                                  167,278         85,404
     Other liabilities                                 24,187         14,645
     Stockholders' equity                             113,463         78,394
     Total liabilities and stockholders' equity    $2,419,923     $1,265,534
 
 
                                USBANCORP, INC.
                        CONSOLIDATED STATEMENT OF INCOME
                                 (In thousands)
                           (Quarterly data unaudited)
                                                          2001
 
     INTEREST INCOME                                       1QTR
     Interest and fees on loans                         $11,699
     Total investment portfolio                           9,475
     Total Interest Income                               21,174
 
     INTEREST EXPENSE
     Deposits                                             5,970
     All other funding sources                            8,089
     Total Interest Expense                              14,059
 
     NET INTEREST INCOME                                  7,115
     Provision for loan losses                              315
     NET INTEREST INCOME AFTER
      PROVISION FOR LOAN LOSSES                           6,800
 
     NON-INTEREST INCOME
     Trust fees                                           1,247
     Net realized gains(losses) on investment
      securities available for sale                         381
     Net realized gains on loans
      and loans held for sale                               176
     Service charges on deposit accounts                    465
     Net mortgage servicing fees                            121
     Bank owned life insurance                              313
     Other income                                         1,627
     Total Non-interest Income                            4,330
 
     NON-INTEREST EXPENSE
     Salaries and employee benefits                       4,847
     Net occupancy expense                                  751
     Equipment expense                                      812
     Professional fees                                      683
     FDIC deposit insurance expense                          31
     Amortization of goodwill and
      core deposit intangibles                              683
     Impairment charge (credit)
      for mortgage servicing rights                         367
     Other expenses                                       2,086
     Total Non-interest Expense                          10,260
 
     INCOME BEFORE INCOME TAXES                             870
     Provision for income taxes                             174
     NET INCOME                                            $696
 
 
     OPERATING EARNINGS (A)                                $696
 
 
      2000
     INTEREST INCOME     1QTR       2QTR        3QTR       4QTR       YEAR
     Interest and fees
      on loans         $22,333    $12,612      $12,510    $12,318    $59,773
     Total investment
      portfolio         19,139      9,761        9,529      9,096     47,525
     Total Interest
      Income            41,472     22,373       22,039     21,414    107,298
 
     INTEREST EXPENSE
     Deposits           10,838      5,875        6,203      6,353     29,269
     All other
      funding sources   15,275      8,760        8,498      8,037     40,570
     Total Interest
      Expense           26,113     14,635       14,701     14,390     69,839
 
     NET INTEREST
      INCOME            15,359      7,738        7,338      7,024     37,459
     Provision for
      loan losses          249        174          249      1,424      2,096
     NET INTEREST
      INCOME AFTER
      PROVISION FOR
      LOAN LOSSES       15,110      7,564        7,089      5,600     35,363
 
     NON-INTEREST
      INCOME
     Trust fees          1,324      1,232        1,257      1,245      5,058
     Net realized
      gains(losses)
      on investment
      securities
      available for
      sale                (889)       (17)         (30)       (16)      (952)
     Net realized
      gains on loans
      and loans
      held for sale        308        423          706        327      1,764
     Wholesale cash
      processing fees      120          -            -          -        120
     Service charges
      on deposit
      accounts             870        455          436        461      2,222
     Net mortgage
      servicing fees       190        243          251        170        854
     Bank owned
      life insurance       437        289          299        283      1,308
     Other income        1,541      1,666        1,528      1,500      6,235
     Total
      Non-interest
      Income             3,901      4,291        4,447      3,970     16,609
 
     NON-INTEREST
      EXPENSE
     Salaries and
      employee
      benefits           8,184      5,073        4,932      5,116     23,305
     Net occupancy
      expense            1,288        692          681        754      3,415
     Equipment expense   1,154        795          777        823      3,549
     Professional fees     865        582          607        777      2,831
     FDIC deposit
      insurance expense     62         34           33         33        162
     Amortization
      of goodwill
      and core
      deposit intangibles  792        693          690        683      2,858
     Impairment charge
     (credit) for
      mortgage servicing
      rights               (55)         -            -        394        339
     Spin-off costs        593      1,632          327          -      2,552
     Wholesale mortgage
      production exit
      costs                  -          -            -      1,498      1,498
     Other expenses      4,114      2,265        2,233      2,613     11,225
     Total
      Non-interest
      Expense           16,997     11,766       10,280     12,691     51,734
 
     INCOME (LOSS)
      BEFORE INCOME
      TAXES              2,014         89        1,256     (3,121)       238
     Provision
      (benefit) for
      income taxes        (597)        79          203     (1,163)    (1,478)
     NET INCOME (LOSS)  $2,611        $10       $1,053    $(1,958)    $1,716
 
 
     OPERATING
      EARNINGS
      (LOSS) (A)        $3,121     $1,414       $1,283    $(1,958)    $3,860
 
     (A) Operating earnings exclude non-recurring spin-off costs.
 
 
                                USBANCORP, INC.
                                  PRO FORMA(A)
                        CONSOLIDATED STATEMENT OF INCOME
                                 (In thousands)
                           (Quarterly data unaudited)
 
 
     2000
     INTEREST INCOME   1QTR(A)      2QTR        3QTR      4QTR     YEAR(A)
     Interest and fees
      on loans        $12,606      $12,612    $12,510   $12,318   $50,046
     Total investment
      portfolio        10,766        9,761      9,529     9,096    39,152
     Total Interest
      Income           23,372       22,373     22,039    21,414    89,198
 
     INTEREST EXPENSE
     Deposits           5,764        5,875      6,203     6,353    24,195
     All other
      funding sources   9,338        8,760      8,498     8,037    34,633
     Total Interest
      Expense          15,102       14,635     14,701    14,390    58,828
 
     NET INTEREST
      INCOME            8,270        7,738      7,338     7,024    30,370
     Provision for
      loan losses          99          174        249     1,424     1,946
     NET INTEREST
      INCOME AFTER
      PROVISION FOR
      LOAN LOSSES       8,171        7,564      7,089     5,600    28,424
 
     NON-INTEREST
      INCOME
     Trust fees         1,249        1,232      1,257     1,245     4,983
     Net realized
      gains(losses)
      on investment
      securities
      available
      for sale           (387)         (17)       (30)      (16)     (450)
     Net realized
      gains on loans
      and loans held
      for sale            322          423        706       327     1,778
     Service charges
      on deposit accounts 428          455        436       461     1,780
     Net mortgage
      servicing fees      190          243        251       170       854
     Bank owned
      life insurance      291          289        299       283     1,162
     Other income       1,185        1,666      1,528     1,500     5,879
     Total Non-interest
      Income            3,278        4,291      4,447     3,970    15,986
 
     NON-INTEREST EXPENSE
     Salaries and
      employee benefits 5,672        5,073      4,932     5,116    20,793
     Net occupancy
      expense             753          692        681       754     2,880
     Equipment expense    746          795        777       823     3,141
     Professional fees    598          582        607       777     2,564
     FDIC deposit
      insurance expense    34           34         33        33       134
     Amortization of
      goodwill and
      core deposit
      intangibles         693          693        690       683     2,759
     Impairment charge
      (credit) for
      mortgage servicing
      rights              (55)           -          -       394       339
     Spin-off costs       135        1,632        327         -     2,094
     Wholesale mortgage
      production exit
      costs                 -            -          -     1,498     1,498
     Other expenses     1,832        2,265      2,233     2,613     8,943
     Total
      Non-interest
      Expense          10,408       11,766     10,280    12,691    45,145
 
     INCOME (LOSS)
      BEFORE INCOME
      TAXES             1,041           89      1,256    (3,121)     (735)
     Provision
      (benefit) for
      income taxes       (120)          79        203    (1,163)   (1,001)
     NET INCOME (LOSS) $1,161          $10     $1,053   $(1,958)     $266
 
 
     OPERATING
      EARNINGS
      (LOSS) (B)       $1,277       $1,414     $1,283   $(1,958)   $2,016
 
     (A) Pro forma financial data excludes Three Rivers Bank which was spun-
         off on April 1, 2000.
     (B) Operating earnings exclude non-recurring spin-off costs.
 
 SOURCE  USBANCORP, Inc.