Chester Valley Bancorp Inc. Reports Record Earnings For Its Year Ended June 30, 2004
July 29 2004 - 1:26PM
PR Newswire (US)
Chester Valley Bancorp Inc. Reports Record Earnings For Its Year
Ended June 30, 2004 DOWNINGTOWN, Pa., July 29
/PRNewswire-FirstCall/ -- Chester Valley Bancorp Inc. (NASDAQ:CVAL)
announces that the Company posted record earnings of $6.3 million
or $1.26 per diluted share for its year ended June 30, 2004. This
compared to earnings of $5.3 million or $1.06 per diluted share for
the year ended June 30, 2003. Year over year, earnings per share
increased 18.9%. Additionally, earnings for the three-months ended
June 30, 2004 were $1.6 million or $0.32 per diluted share, a 77.8%
increase over the three-month period ended June 30, 2003. At June
30, 2004, total assets increased to $642.1 million, an increase of
9.85% compared to total assets of $584.5 million at June 30, 2003.
At June 30, 2004, commercial and construction loans increased by
8.5% to $213.2 million as compared to $196.4 million at June 30,
2003. The asset growth was funded with both deposits and Federal
Home Loan Bank advance borrowings. Over this same period, core
deposits increased to $319.7 million as compared to $254.0 million,
a 25.9% increase. Donna Coughey, President and CEO stated, "The
restructure of our Company's balance sheet to that of a commercial
bank is substantially completed. Additionally, our successful
acquisition of the Coatesville branch from PNC National Bank
illustrates our commitment and ability to enhance our existing
branch networks through both external acquisitions as well as
internal growth. We are excited about the recent opening of our
West Chester location which we believe will enhance our wealth
management initiatives and continue to augment our fee income." Net
income for the three- and twelve-months ended June 30, 2004
increased by $699,000 and $1,048,000 as compared to the same
periods in 2003. Net interest income increased by $492,000 and
$1,327,000 over the same three- and twelve-month periods due
largely to the growth in average earning assets. Also contributing
to the improved net interest margin during the twelve-month period
was lower funding costs attributed to continued growth of demand
deposits and a general decline in market interest rates. In
addition, the Company is reaping the benefits of interest rate swap
transactions that were initiated in the first quarter to hedge a
portion of the Company's higher costing Federal Home Loan Bank
borrowings, as part of its on-going interest rate risk management
strategies. Total other income and service charges and fees
increased $290,000 and $1,512,000 for the three- and twelve-months
ended June 30, 2004, respectively. This is due primarily to fees
associated with core deposits as well new personal trust and
investments business. Operating expenses increased 8.2% or $370,000
for the three-months ended June 30, 2004 as compared to the
three-months ended June 30, 2003. The increase is due largely to
annual employee salary increases as well as the costs associated
with the opening of the Eagle branch in April 2003, the acquisition
of the Coatesville branch on March 31, 2004 and the opening of the
West Chester Private Client Branch. For the twelve-months ended
June 30, 2004 as compared to the same period ended March 31, 2003,
the increase in operating expenses was less pronounced at
$1,311,000 or 7.4%, due largely to the aforementioned salary
increases and branch openings and acquisitions as well as legal
costs associated with a Sarbanes-Oxley review performed on behalf
of the audit committee. The provision for loan losses was $115,000
and $971,000 for the three- and twelve-months ended June 30, 2004
as compared to $705,000 and $879,000 for the three- and
twelve-months ended June 30, 2003. The increase resulted
principally from the Company's changing loan mix and loan growth.
Chester Valley Bancorp Inc. is the parent company of both First
Financial Bank and Philadelphia Corporation for Investment
Services. First Financial's executive offices are located in
Downingtown, Pennsylvania with branches in Exton, Frazer,
Thorndale, Westtown, Airport Village, Brandywine Square, Devon,
Kennett Square, Eagle Square, Coatesville and West Chester.
Philadelphia Corporation has offices in Wayne and Philadelphia.
Chester Valley Bancorp stock is traded on the NASDAQ market under
the symbol "CVAL". CHESTER VALLEY BANCORP INC. AND SUBSIDIARIES
Selected Financial Data (Dollars in Thousands Except for Per Share
Amounts) *** CONSOLIDATED OPERATIONS DATA: Three-months Ended
Twelve-months Ended June 30, June 30, 2004 2003 2004 2003 Total
interest income $7,634 $7,576 $29,868 $31,715 Total interest
expense 2,680 3,114 10,718 13,892 Net interest income 4,954 4,462
19,150 17,823 Provision for loan losses 115 705 971 879 Net
interest income after provision for loan losses 4,839 3,757 18,179
16,944 Total other income 2,189 1,899 9,086 7,574 Other operating
expenses 4,897 4,527 18,940 17,629 Income before income taxes 2,131
1,129 8,325 6,889 Income tax expense 539 236 2,015 1,627 Net income
$1,592 $ 893 $6,310 $5,262 Earnings per common share (1) Basic
$0.33 $0.19 $1.30 $1.10 Diluted $0.32 $0.18 $1.26 $1.06 ***
CONSOLIDATED FINANCIAL CONDITION DATA: June 30, June 30, 2004 2003
% Change Total assets $642,108 $584,528 9.85% Loans and loans held
for sale, net 395,664 384,828 2.82% Deposits 427,103 400,586 6.62%
Total stockholders' equity 52,257 49,571 5.42% *** OTHER SELECTED
DATA: Three-months Ended Twelve-months Ended June 30, June 30, 2004
2003 2004 2003 Average interest rate spread (2) 3.23% 3.35% 3.38%
3.35% Net yield on average interest-earning assets (2) 3.41% 3.43%
3.46% 3.43% Ratio of average interest-earning assets to average
interest-bearing liabilities 1.10 x 1.03 x 1.04 x 1.03 x
Non-performing assets to total assets 0.66% 0.19% 0.66% 0.19% Book
value per common share (1) $10.72 $10.33 $10.72 $10.33 Closing
price of common stock at end of period (1) $21.48 $18.34 $21.48
$18.34 Number of full-service offices at end of period 11 10 11 10
(1) Per share amounts have been restated to reflect the effects of
the 5% stock dividend paid in September 2003. (2) Percentages are
presented on a taxable equivalent basis. DATASOURCE: Chester Valley
Bancorp Inc. CONTACT: Joseph T. Crowley, Treasurer & Chief
Financial Officer, Chester Valley Bancorp, +1-610-269-9700 ext.
3085
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