STATE COLLEGE, Pa., July 30 /PRNewswire-FirstCall/ -- Omega
Financial Corporation (NASDAQ:OMEF) reported second quarter net
income of $5.0 million versus $5.3 million for the same period last
year. For the six months ended June 30, net income was $10.5
million in 2007 compared to $10.7 million for 2006, company
officials said. Fully diluted earnings per share were $0.39 for the
quarter and $0.83 for the year to date. Donita R. Koval, Omega's
president and chief executive officer stated that earnings were
significantly impacted by increased loan loss provisions but noted,
"Our basic strategies of managing interest rate risk, focusing on
transaction and service revenues and containing operating costs are
sound and favorably reflected in the continued strength of the net
interest margin, increases in non-interest income as well as
reductions in non-interest expense." The loan loss provision for
the second quarter of 2007 totaled $0.7 million, an increase of
$0.6 million over the same period in 2006. The level of the second
quarter provision relates primarily to specific provisions recoded
for two commercial borrowers. While non-performing loans have
declined $4.3 million from the first quarter to $22.7 million at
June 30, 2007, net charge-offs increased $5.3 million and certain
commercial credits were downgraded during the quarter. Management
is actively working to minimize the ultimate losses on these
credits. No material provision was necessary in the second quarter
for the large commercial borrower who filed for bankruptcy
protection in 2006. This borrower emerged from bankruptcy
reorganization in May 2007 and as a result $4.4 million of this
borrower's loans were charged off in the second quarter. These
loans had been appropriately considered in establishing the
allowance for loan losses in prior periods. As of June 30, 2007,
total loans outstanding to this borrower totaled $14.2 million,
with a specific allocation of the loan loss reserve totaling $1.8
million, which management deems to be adequate. These loans remain
on non-accrual status until the new entity demonstrates consistent
positive operating cash flow. The company's net interest margin for
the second quarter was 4.19% on a fully tax-equivalent basis
compared to 4.09% for the same period last year. Koval attributed
this 10 basis point increase to a disciplined approach in pricing
both loans and deposits. She noted that while this approach has
limited balance sheet growth in recent periods it has set the
foundation for profitable future growth. For the year, net interest
margin grew by 15 basis points as compared to the same period in
2006. The net interest margin grew despite decreases in net
interest income of $.4 million for the quarter and $0.6 million for
the year. Koval noted that the 2006 second quarter net interest
income included $0.3 million attributable to three branches sold in
the final quarter of last year. Those three branches accounted for
$0.5 million of Omega's interest income as of June 30, 2006.
Excluding gains on the sale of assets, other income increased $0.4
million or 5.8% for the quarter and $0.5 million or 3.8% year to
date. Non-interest income grew for both the quarter and year to
date in several categories, including revenues on deposits, wealth
management and other income. The three branch locations sold in
2006 contributed $0.06 million in the second quarter 2006 and $0.1
million for the six months ended June 30, 2006. The company
continues to be successful in controlling non-interest expense,
evidenced by a decline in expenses of $.6 million or 4.15% for the
quarter and $1.5 million or 4.85% year to date. Expense savings
came in several areas due primarily to renegotiations on key
operating contracts and restructuring of certain business lines,
including the formation of a mortgage joint venture. Quarterly and
annual reports, a corporate profile, stock quotes and other
financial data can be accessed through the Omega web site at
http://www.omegafinancial.com/ . Financial statements and selected
financial highlights are summarized on the following pages. OMEGA
FINANCIAL CORPORATION AND SUBSIDIARIES CONSOLIDATED FINANCIAL
HIGHLIGHTS (Unaudited) (In thousands, except as indicated * ) Three
Months Ended June 30, 2007 2006 % Change Earnings: Net income
$4,963 $5,345 (7.1)% Per share statistics: * Diluted earnings $.39
$.42 (7.1)% Dividends declared - common .31 .31 - Book value -
common 25.96 25.41 2.2 Book value - tangible 12.83 11.89 7.9 Market
value - High 29.66 34.10 (13.0) Low 26.67 28.19 (5.4) Financial
position at period end: Assets $1,807,454 $1,908,401 (5.3)% Net
loans 1,131,198 1,178,251 (4.0) Deposits 1,317,084 1,420,652 (7.3)
Shareholders' equity 327,743 318,819 2.8 Average Balances: Assets
$1,801,121 $1,908,861 (5.6)% Net loans 1,134,049 1,180,827 (4.0)
Deposits 1,306,376 1,416,002 (7.7) Shareholders' equity 330,369
321,768 2.7 Non-Performing Loans at period end: Non-accrual loans
$20,717 $22,922 (9.6)% Accruing loans past due 90 days or more
1,999 2,769 (27.8) Profitability ratios - annualized: * Return on
average assets 1.10% 1.12% (1.6)% Return on tangible assets 1.21
1.23 (1.6) Return on average stated equity (1) 6.01 6.64 (9.6)
Return on average tangible equity (2) 12.07 14.06 (14.2) Net
interest margin - fully tax equivalent 4.19 4.09 2.4 Shares
outstanding at period end: * Common 12,626,042 12,548,843 0.6 (1)
Average stated equity is equal to average shareholders' equity. (2)
Average tangible equity represents average shareholders' equity
less average intangibles and goodwill. Six Months Ended June 30,
2007 2006 % Change Earnings: Net income $10,546 $10,688 (1.3)% Per
share statistics: * Diluted earnings $.83 $.85 (2.4)% Dividends
declared - common .62 .62 - Book value - common 25.96 25.41 2.2
Book value - tangible 12.83 11.89 7.9 Market value - High 34.49
34.21 0.8 Low 26.67 27.88 (4.3) Financial position at period end:
Assets $1,807,454 $1,908,401 (5.3)% Net loans 1,131,198 1,178,251
(4.0) Deposits 1,317,084 1,420,652 (7.3) Shareholders' equity
327,743 318,819 2.8 Average Balances: Assets $1,801,565 $1,913,847
(5.9)% Net loans 1,133,310 1,184,835 (4.3) Deposits 1,304,332
1,411,955 (7.6) Shareholders' equity 329,838 321,662 2.5
Non-Performing Loans at period end: Non-accrual loans $20,717
$22,922 (9.6)% Accruing loans past due 90 days or more 1,999 2,769
(27.8) Profitability ratios - annualized: * Return on average
assets 1.17% 1.12% 4.50% Return on tangible assets 1.29 1.23 4.88
Return on average stated equity (1) 6.39 6.65 (3.80) Return on
average tangible equity (2) 12.87 14.09 (8.70) Net interest margin
- fully tax equivalent 4.19 4.04 3.7 Shares outstanding at period
end: * Common 12,626,042 12,548,843 0.6% (1) Average stated equity
is equal to average shareholders' equity. (2) Average tangible
equity represents average shareholders' equity less average
intangibles and goodwill. OMEGA FINANCIAL CORPORATION AND
SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In thousands, except
share data) (unaudited) June 30, December 31, 2007 2006 Assets Cash
and due from banks 59,595 56,225 Interest bearing deposits with
other banks 10,553 12,073 Trading securities 57 48 Investment
securities available for sale 285,290 291,807 Other investments
12,193 12,087 Investment in unconsolidated subsidiary 1,625 1,625
Loans held for sale - 204 Total portfolio loans 1,144,029 1,152,188
Less: Allowance for loan losses (12,831) (17,344) Net portfolio
loans 1,131,198 1,134,844 Premises and equipment, net 29,777 30,861
Other real estate owned 945 512 Bank-owned life insurance 77,627
76,341 Investment in limited partnerships 5,404 5,763 Core deposit
intangibles 5,273 5,641 Other intangibles 1,030 1,085 Goodwill
159,408 159,387 Other assets 27,479 27,315 TOTAL ASSETS $1,807,454
$1,815,818 Liabilities and Shareholders' Equity Deposits:
Non-interest bearing $234,332 $232,335 Interest bearing 1,082,752
1,093,428 Total deposits 1,317,084 1,325,763 Short-term borrowings
65,382 65,712 ESOP debt 1,288 1,481 Junior subordinated debentures
55,944 56,193 Long-term debt 27,167 27,877 Other interest bearing
liabilities 869 858 Other liabilities 11,977 12,723 TOTAL
LIABILITIES 1,479,711 1,490,607 Shareholders' Equity Preferred
stock, par value $5.00 per share: Authorized - 5,000,000 shares,
none issued Common stock, par value $5.00 per share: Authorized -
25,000,000 shares; Issued - 12,860,658 shares at June 30, 2007;
12,823,471 shares at December 31, 2006 64,319 64,133 Outstanding -
12,626,042 shares at June 30, 2007; 12,622,802 shares at December
31, 2006 Capital surplus 103,973 103,149 Retained earnings 167,391
164,653 Accumulated other comprehensive income (86) 313 Unearned
compensation related to ESOP debt (716) (859) Cost of common stock
in treasury: 234,616 shares at June 30, 2007; 200,669 shares at
December 31, 2006 (7,138) (6,178) TOTAL SHAREHOLDERS' EQUITY
327,743 325,211 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
$1,807,454 $1,815,818 OMEGA FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME (In thousands, except share data)
(Unaudited) Three Months Ended Six Months Ended June 30, June 30,
2007 2006 2007 2006 Interest Income: Interest and fees on loans
$19,900 $20,372 $39,723 $40,209 Interest and dividends on
investment securities 3,482 3,077 6,827 6,181 Other interest income
141 241 313 342 TOTAL INTEREST INCOME. 23,523 23,690 46,863 46,732
Interest Expense: Interest on deposits 6,647 6,409 13,099 12,304
Interest on short-term borrowings 676 663 1,399 1,434 Interest on
long-term debt and other interest bearing liabilities 1,256 1,248
2,497 2,512 TOTAL INTEREST EXPENSE 8,579 8,320 16,995 16,250 NET
INTEREST INCOME 14,944 15,370 29,868 30,482 Provision for loan
losses 745 100 1,355 220 INCOME FROM CREDIT ACTIVITIES 14,199
15,270 28,513 30,262 Other Income: Service fees on deposit accounts
2,654 2,598 5,051 4,952 Service fees on loans 430 443 757 825
Earnings on bank-owned life insurance 646 552 1,286 1,159 Trust
fees 1,101 1,025 2,194 2,145 Investment and insurance product sales
701 618 1,552 1,542 Gain (loss) on sale of loans and other assets
(48) 64 30 121 Net gains on the sale of investment securities (37)
176 338 238 Other 1,291 1,215 2,659 2,381 TOTAL OTHER INCOME 6,738
6,691 13,867 13,363 Other Expense: Salaries and employee benefits
6,882 7,308 14,099 14,793 Net occupancy expense 1,096 1,083 2,151
2,188 Equipment expense 1,195 1,143 2,330 2,271 Data processing
service 599 673 1,209 1,318 Pennsylvania shares tax 786 728 1,572
1,440 Amortization of intangible assets 212 222 423 443 Other 3,634
3,870 6,668 7,449 TOTAL OTHER EXPENSE 14,404 15,027 28,452 29,902
Income before income taxes and discontinued operations 6,533 6,934
13,928 13,723 Income tax expense 1,570 1,568 3,382 3,051 Income
from continuing operations 4,963 5,366 10,546 10,672 Discontinued
operations: Income from discontinued operations, net of tax - 125 -
162 Loss on disposal of discontinued operations, net of tax - (146)
- (146) Income (Loss) from discontinued operations - (21) - 16 NET
INCOME $4,963 $5,345 $10,546 $10,688 Net income per common share
Basic $0.39 $0.43 $0.83 $0.85 Diluted $0.39 $0.42 $0.83 $0.85 Net
income per common share from continuing operations Basic $0.39
$0.43 $0.83 $0.85 Diluted $0.39 $0.43 $0.83 $0.85 Net income per
common share from discontinued operations Basic $- $- $- $- Diluted
$- $- $- $- Weighted average shares and equivalents Basic 12,624
12,572 12,630 12,579 Diluted 12,641 12,616 12,650 12,624 Dividends
declared per share Common $0.31 $0.31 $0.62 $0.62 Omega Financial
Corporation Consolidated Net Interest Income Analysis Second
Quarter 2007 vs. Second Quarter 2006 (In thousands) Second Quarter
2007 Second Quarter 2006 Average Income/ Average Income/ Balance
Rate Expense Balance Rate Expense INTEREST EARNING ASSETS Money
Market Investments Interest Bearing Deposits 10,781 3.79% 102
11,158 4.13% 115 Federal Funds Sold 2,991 5.36% 39 10,237 4.94% 126
Total Money Market Investments 13,772 4.14% 141 21,395 4.52% 241
Investment Securities U.S. Treasuries and Agencies 272,130 4.57%
3,099 279,381 3.64% 2,537 State and Municipals- Tax Free 1,000
3.20% 8 39,609 2.63% 260 Corporate Securities & Stock 26,222
5.72% 375 19,201 5.83% 280 Total Investment Securities 299,352
4.67% 3,482 338,191 3.65% 3,077 Loans Commercial Loans 239,706
7.60% 4,540 265,236 7.31% 4,835 Tax Free Commercial Loans 17,276
4.88% 210 19,315 4.76% 229 Real Estate Loans 654,687 6.75% 11,046
706,380 6.73% 11,892 Tax Free Real Estate Loans 38,873 4.31% 419
40,507 4.30% 435 Personal Loans and Leases 198,688 7.44% 3,685
164,415 7.27% 2,981 Total Loans 1,149,230 6.94% 19,900 1,195,853
6.82% 20,372 Total Earning Assets 1,462,354 6.45% 23,523 1,555,439
6.10% 23,690 FUNDING SOURCES Interest Bearing Liabilities Checking
with Interest 302,067 0.84% 633 314,395 0.73% 572 Money Market
Deposits 71,323 1.50% 266 88,131 1.50% 330 Savings Deposits 180,993
0.55% 248 200,977 0.55% 275 CD'S, $100,000 and Over 85,523 4.40%
939 97,755 4.04% 984 Other Time Deposits 439,783 4.16% 4,561
476,046 3.58% 4,248 Total Interest Bearing Deposits 1,079,689 2.47%
6,647 1,177,304 2.18% 6,409 Short-Term Borrowings 65,970 4.11% 676
71,576 3.71% 662 Long-Term Debt 84,997 5.87% 1,247 85,236 5.82%
1,240 Other Interest Bearing Liabilities 853 4.22% 9 806 4.47% 9
Demand Deposits 226,687 238,698 Cash (47,125) (50,685) Other 51,283
32,504 Total Funding Sources 1,462,354 2.35% 8,579 1,555,439 2.14%
8,320 Net Int Spread - Net Int Income 4.10% 14,944 3.96% 15,370 Net
Int Spread - Tax Equivalent 4.19% 4.09% Net Int Income - Tax
Equivalent 15,287 15,868 Tax Rate 35% 35% Increase/(Decrease) Due
To Volume Due To Rate Net Change INTEREST EARNING ASSETS Money
Market Investments Interest Bearing Deposits (4) (9) (13) Federal
Funds Sold (94) 7 (87) Total Money Market Investments (98) 2 (100)
Investment Securities U.S. Treasuries and Agencies (68) 630 562
State and Municipals-Tax Free (299) 47 (252) Corporate Securities
& Stock 100 (5) 95 Total Investment Securities (266) 671 405
Loans Commercial Loans (481) 186 (295) Tax Free Commercial Loans
(25) 6 (19) Real Estate Loans (881) 35 (846) Tax Free Real Estate
Loans (17) 1 (16) Personal Loans and Leases 633 71 704 Total Loans
(770) 298 (472) Total Earning Assets (1,136) 969 (167) FUNDING
SOURCES Interest Bearing Liabilities Checking with Interest (23) 84
61 Money Market Deposits (64) 0 (64) Savings Deposits (27) 0 (27)
CD'S, $100,000 and Over (129) 84 (45) Other Time Deposits (340) 653
313 Total Interest Bearing Deposits (583) 820 237 Short-Term
Borrowings (54) 67 13 Long-Term Debt (4) 12 8 Other Interest
Bearing Liabilities 1 (1) - Demand Deposits Cash Other Total
Funding Sources (640) 899 259 Net Int Spread - Net Int Income (496)
70 (426) Net Int Spread - Tax Equivalent Net Int Income - Tax
Equivalent Tax Rate DATASOURCE: Omega Financial Corporation
CONTACT: Teresa Ciambotti, SVP, Director of Investor Relations of
Omega Financial Corporation, +1-814-231-6401 Web site:
http://www.omegafinancial.com/
Copyright
Omega Financial (MM) (NASDAQ:OMEF)
Historical Stock Chart
From Aug 2024 to Sep 2024
Omega Financial (MM) (NASDAQ:OMEF)
Historical Stock Chart
From Sep 2023 to Sep 2024