Chester Valley Bancorp Inc. Reports Third Consecutive Quarter of Record Earnings
28 April 2004 - 10:35PM
PR Newswire (US)
Chester Valley Bancorp Inc. Reports Third Consecutive Quarter of
Record Earnings DOWNINGTOWN, Pa., April 28 /PRNewswire-FirstCall/
-- Chester Valley Bancorp Inc. announces that the Company posted
its third consecutive quarter of record earnings of $1.6 million or
$0.32 per diluted share for the three months ended March 31, 2004.
This compared to earnings of $1.5 million or $0.30 per diluted
share for the three months ended March 31, 2003. Additionally,
earnings for the nine months ended March 31, 2004 were $4.7 million
or $0.93 per diluted share, an 8% increase over the nine-month
period ended March 31, 2003. At March 31, 2004, total assets
increased to $630.1 million as the Company completed its
acquisition of the Coatesville branch from PNC Bank. As a result of
the acquisition, the Company assumed approximately $19.5 million in
deposits and acquired $4.0 million in consumer and commercial
loans. The Coatesville branch increased the number of full-service
offices of the Company to 11 while the Company has received
regulatory approval to open a 12th branch office in West Chester,
Pennsylvania, which will focus primarily on private banking and
wealth management services. At March 31, 2004, commercial and
construction loans increased by 5.75% to $207.7 million as compared
to $196.4 million at June 30, 2003. Over the same period, core
deposits increased to $309.7 million as compared to $254.0 million,
a 21.9% increase. "Our Company has effectively completed the
restructure of the balance sheet to that of a commercial bank. We
will remain focused on opportunities to increase fee income, both
internally as well as through potential acquisitions, which we feel
will enhance our existing branch network. We believe that the
Coatesville and West Chester locations will accomplish that
objective and our commercial loan department is strong and growing
while our wealth management initiatives will continue to augment
our fee income," stated Donna M. Coughey, President & CEO. Net
income for the three and nine months ended March 31, 2004 increased
by $125,000 and $349,000 as compared to the same periods in 2003.
Net interest income increased by $365,000 and $835,000 over the
same three- and nine-month periods due largely to the growth in
average earning assets as well as an improvement in the net
interest margin. Contributing to the improved net interest margin
was lower funding costs attributed to a general decline in market
interest rates. In addition, the Company continues to reap 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 ongoing
interest rate risk management strategies. Investment services
income and service charges and fees increased $339,000 and $629,000
for the three and nine months ended March 31, 2004, respectively.
This was due primarily to fees associated with core deposits as
well as new personal trust and investments business. Gains on
securities available for sale were $378,000 and $1.0 million for
the three and nine months ended March 31, 2004. These gains were
due to the tender of a bond, portfolio restructuring done as part
of the Company's asset and liability management as well as the
liquidation of a portfolio of Community Bank stock investments.
Operating expenses increased 8.2% or $359,000 for the three months
ended March 31, 2004 as compared to the three months ended March
31, 2003. The increase was due largely to annual employee salary
increases as well as the costs associated with the opening of the
Eagle branch in April 2003. For the nine months ended March 31,
2004 as compared to the same period ended March 31, 2003, the
increase in operating expenses was less pronounced at $941,000 or
7.2%, due largely to the aforementioned salary increases and branch
opening as well as legal costs associated with a Sarbanes-Oxley
review performed on behalf of the audit committee. The provision
for loan losses was $180,000 and $856,000 for the three and nine
months ended March 31, 2004 as compared to a negative $68,000 and
$174,000 for the three and nine months ended March 31, 2003. The
increase resulted principally from additions to the reserve to
cover loan growth as well as potentially increased risk due to the
changing loan mix. Total assets at March 31, 2004 increased to
$630.1 million as compared to $584.5 million at June 30, 2003. The
$45.6 million increase was driven by loan growth of $10.4 million,
primarily within the Commercial loan portfolio, as well as growth
in the investment portfolio and interest-bearing deposits as the
Coatesville acquisition was effective March 31, 2004. The asset
growth was funded with both deposits and Federal Home Loan Bank
advance borrowings. 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 and Coatesville. 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 Nine months
Ended March 31, March 31, 2004 2003 2004 2003 Total interest income
$7,369 $7,672 $22,234 $24,139 Total interest expense 2,624 3,292
8,038 10,778 Net interest income 4,745 4,380 14,196 13,361
Provision for loan losses 180 (68) 856 174 Net interest income
after provision for loan losses 4,565 4,448 13,340 13,187 Total
other income 2,313 1,826 6,897 5,675 Other operating expenses 4,744
4,385 14,043 13,102 Income before income taxes 2,134 1,889 6,194
5,760 Income tax expense 528 408 1,476 1,391 Net income $1,606
$1,481 $4,718 $4,369 Earnings per common share (1) Basic $0.33
$0.31 $0.98 $0.92 Diluted $0.32 $0.30 $0.93 $0.89 *** CONSOLIDATED
FINANCIAL CONDITION DATA: March 31, June 30, 2004 2003 % Change
Total assets $630,050 $584,528 7.79% Loans and loans held for sale,
net 395,244 384,828 2.71% Deposits 420,068 400,586 4.86% Total
stockholders' equity 53,288 49,571 7.50% *** OTHER SELECTED DATA:
Three-months Ended Nine-months Ended March 31, March 31, 2004 2003
2004 2003 Average interest rate spread (2) 3.36% 3.28% 3.41% 3.35%
Net yield on average interest-earning assets (2) 3.48% 3.45% 3.47%
3.43% Ratio of average interest-earning assets to average
interest-bearing liabilities 1.05 x 1.03 x 1.05 x 1.03 x
Non-performing assets to total assets 0.69% 0.16% 0.69% 0.16% Book
value per common share (1) $10.97 $9.94 $10.97 $9.94 Closing price
of common stock at end of period (1) $21.90 $21.53 $21.90 $21.53
Number of full-service offices at end of period 11 9 11 9 (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 Web site: http://www.ffbonline.com/
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