EX-99 3 ex99.txt EXHIBIT 99 Exhibit 99 L.G. ZANGANI, LLC (908) 788-9660 Fax: (908) 788-4024 -------------------------------------- Nine Main Street, Flemington, NJ 08822 E-mail: lgzangani@rcn.com Web site: http://www.zangani.com For Release: IMMEDIATELY Contact: Stephen F. Carman, EVP/CFO (609) 631-6222 Kevin Nally, LG Zangani LLC (908) 788-9660 YARDVILLE NATIONAL BANCORP REPORTS 48% INCREASE IN THIRD QUARTER EARNINGS YARDVILLE, N.J., October 21, 2002 ..... Yardville National Bancorp (NASDAQ: YANB) today announced that YNB's net income for the quarter ended September 30, 2002 was $3.7 million, a 48.3% increase from the $2.5 million earned in the same period a year ago. Earnings per share on a diluted basis were $0.44 for the third quarter of 2002, up 37.5% from $0.32 per diluted share for the third quarter of 2001. For the nine months ended September 30, 2002, YNB's net income increased 40.7% to $10.7 million from the $7.6 million earned in the same period a year ago. Earnings per share on a diluted basis for the first three quarters of 2002 rose 28.7% to $1.30 per diluted share from $1.01 in the comparable period last year. Quarter and year-to-date earnings per share increased at a lesser rate than net income due to dilution from an increased number of shares, resulting primarily from a private common stock offering completed in August 2001. "Solid commercial loan growth and the continued decline in our cost of funds have helped to improve our net interest income and financial performance through the first nine months of 2002," commented YNB President and Chief Executive Officer Patrick M. Ryan. "To complement our success in lending, we plan to continue to build our retail banking business throughout our market areas," he added. As part of a strategic positioning of YNB's investment portfolio during the first nine months of 2002 YNB realized $2.5 million in net securities gains. This compares with net securities gains of $2.1 million for the same time period in 2001. At September 30, 2002, YNB's total loans outstanding increased 23.5% over the same date a year ago, totaling $1.1 billion compared with $926.2 million. Overall loan quality remains strong. Nonperforming assets decreased $358,000 to $7.9 million in the third quarter of 2002 compared to $8.2 million for the same period in 2001. As a percent of total assets, nonperforming assets decreased to 0.36% at September 30, 2002 compared to 0.43% at September 30, 2001. The allowance for loan losses at September 30, 2002 totaled $16.2 million, or 1.41% of total loans, covering 244.3% of total nonperforming loans. YNB's continued geographic expansion into Hunterdon County in 2002 as well as in existing markets has resulted in ongoing growth in deposits. Total deposits at September 30, 2002 increased to $1.3 billion, an 18.1% increase over total deposits of $1.1 billion at September 30, 2001. -MORE- YARDVILLE NATIONAL BANCORP REPORTS 48% INCREASE IN THIRD QUARTER EARNINGS Page 2 "We intend to continue bringing our philosophy of relationship banking to additional communities in Mercer and Hunterdon Counties as well as other targeted markets," explained YNB Chairman Jay G. Destribats. "YNB anticipates opening our first branch in Middlesex County, New Jersey by the end of this year, and we have filed an application with the regulatory authorities to open our first branch office in Somerset County, New Jersey," he added. At September 30, 2002, YNB's capital ratios continued to exceed the minimum regulatory requirements in order to be considered a well-capitalized institution. YNB has paid total cash dividends of $0.33 in the first three quarters of 2002 and has now paid a cash dividend for 35 consecutive quarters. With $2.2 billion in assets as of September 30, 2002, YNB serves individuals and businesses in the dynamic New York City-Philadelphia corridor through a network of 18 branches in Mercer, Hunterdon and Burlington counties in New Jersey and Bucks County in Pennsylvania. Headquartered in Mercer County for 77 years, YNB emphasizes commercial lending and offers a broad range of lending, deposit and other financial products and services. Note regarding forward-looking statements ----------------------------------------- This press release and other statements made from time to time by our management contain express and implied statements relating to our future financial condition, results of operations, plans, objectives, performance, and business, which are considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These may include statements that relate to, among other things, profitability, liquidity, loan loss reserve adequacy, plans for growth, interest rate sensitivity, market risk, regulatory compliance, and financial and other goals. Actual results may differ materially from those expected or implied as a result of certain risks and uncertainties, including, but not limited to, the results of our efforts to implement our retail strategy, adverse changes in our loan portfolio and the resulting credit risk-related losses and expenses, interest rate fluctuations and other economic conditions, our ability to attract core deposits, continued relationships with major customers, competition in product offerings and product pricing, adverse changes in the economy that could increase credit-related losses and expenses, compliance with laws and regulatory requirements of federal and state agencies, other risks and uncertainties detailed from time to time in our filings with the SEC, as well as other risks and uncertainties detailed from time to time in statements made by our management. L.G. Zangani, LLC provides financial public relations service to the Company. As such, L.G. Zangani, LLC and/or its officers, agents and employees, receives remuneration for public relations and/or other services performed for the Company. This remuneration may take the form of cash, capital stock in the Company, or warrants and/or options to purchase stock in the Company. Yardville National Bancorp Summary of Financial Information (Unaudited)
Three Months Ended Nine Months Ended September 30, September 30, ------------------------------------------------------------------------------------------------------------------------------------ (in thousands, except per share amounts) 2002 2001 2002 2001 ------------------------------------------------------------------------------------------------------------------------------------ Stock Information: Weighted average shares outstanding: Basic 8,047 7,648 8,028 7,473 Diluted 8,325 7,703 8,218 7,542 Shares outstanding end of period 8,053 7,980 Earnings per share: Basic $ 0.46 $ 0.33 $ 1.34 $ 1.02 Diluted 0.44 0.32 1.30 1.01 Dividends paid per share 0.11 0.11 0.33 0.33 Book value per share 13.68 12.43 Closing price per share 16.99 12.05 Closing price to book 124.20% 96.94% Key Ratios: Return on average assets 0.69% 0.54% 0.69% 0.58% Return on average stockholders' equity 13.77 11.55 14.19 12.27 Net interest margin (tax equivalent) 2.39 2.06 2.37 2.20 Equity-to-assets at period end 5.04 5.22 Tier 1 leverage ratio (1) 6.53 7.08 Asset Quality Data: Net loan charge-offs $ 233 $ 113 $ 302 $ 1,173 Nonperforming assets as a percentage of total assets 0.36% 0.43% Allowance for loan losses at period end as a percent of: Total loans 1.41 1.31 Nonperforming loans 244.26 220.07 Nonperforming assets at period end: Nonperforming loans $ 6,618 $ 5,526 Other real estate 1,248 2,698 ---------- ----------- Total nonperforming assets $ 7,866 $ 8,224 ========== ===========
(1) Tier 1 leverage ratio is Tier 1 capital to adjusted average assets Yardville National Bancorp and Subsidiaries Consolidated Statements of Income (Unaudited)
Three Months Ended Nine Months Ended September 30, September 30, ------------------------------------------------------------------------------------------------------------------------------------ (in thousands, except per share amounts) 2002 2001 2002 2001 ------------------------------------------------------------------------------------------------------------------------------------ INTEREST INCOME: Interest and fees on loans $ 19,294 $ 17,708 $ 55,205 $ 52,651 Interest on deposits with banks 14 59 44 147 Interest on securities available for sale 10,521 10,138 31,043 29,795 Interest on investment securities: Taxable 120 1,014 631 3,243 Exempt from Federal income tax 590 516 1,751 1,449 Interest on Federal funds sold 296 860 951 2,368 ------------------------------------------------------------------------------------------------------------------------------------ Total Interest Income 30,835 30,295 89,625 89,653 ------------------------------------------------------------------------------------------------------------------------------------ INTEREST EXPENSE: Interest on savings account deposits 2,759 2,413 8,486 7,328 Interest on certificates of deposit of $100,000 or more 1,233 1,831 3,943 5,958 Interest on other time deposits 4,538 7,116 13,469 21,126 Interest on borrowed funds 9,414 9,253 27,050 26,172 Interest on trust preferred securities 775 775 2,325 2,177 ------------------------------------------------------------------------------------------------------------------------------------ Total Interest Expense 18,719 21,388 55,273 62,761 ------------------------------------------------------------------------------------------------------------------------------------ Net Interest Income 12,116 8,907 34,352 26,892 Less provision for loan losses 1,300 825 2,925 2,400 ------------------------------------------------------------------------------------------------------------------------------------ Net Interest Income After Provision for Loan Losses 10,816 8,082 31,427 24,492 ------------------------------------------------------------------------------------------------------------------------------------ NON-INTEREST INCOME: Service charges on deposit accounts 573 492 1,641 1,372 Securities gains, net 896 1,011 2,522 2,139 Bank owned life insurance 417 449 1,260 1,331 Other non-interest income 326 311 1,009 901 ------------------------------------------------------------------------------------------------------------------------------------ Total Non-Interest Income 2,212 2,263 6,432 5,743 ------------------------------------------------------------------------------------------------------------------------------------ NON-INTEREST EXPENSE: Salaries and employee benefits 4,529 3,746 13,117 11,031 Occupancy expense, net 888 711 2,568 2,032 Equipment expense 590 466 1,735 1,475 Other non-interest expense 1,854 2,100 5,566 5,432 ------------------------------------------------------------------------------------------------------------------------------------ Total Non-Interest Expense 7,861 7,023 22,986 19,970 ------------------------------------------------------------------------------------------------------------------------------------ Income before income tax expense 5,167 3,322 14,873 10,265 Income tax expense 1,473 831 4,152 2,646 ------------------------------------------------------------------------------------------------------------------------------------ Net Income $ 3,694 $ 2,491 $ 10,721 $ 7,619 ==================================================================================================================================== EARNINGS PER SHARE: Basic $ 0.46 $ 0.33 $ 1.34 $ 1.02 Diluted 0.44 0.32 1.30 1.01 ------------------------------------------------------------------------------------------------------------------------------------ Weighted average shares outstanding: Basic 8,047 7,648 8,028 7,473 Diluted 8,325 7,703 8,218 7,542 ====================================================================================================================================
Yardville National Bancorp and Subsidiaries Consolidated Statements of Condition (Unaudited)
September 30, Dec. 31, ------------------------------------------------------------------------------------------------------------------------------------ (in thousands) 2002 2001 2001 ------------------------------------------------------------------------------------------------------------------------------------ Assets: Cash and due from banks $ 28,916 $ 23,618 $ 27,771 Federal funds sold 104,275 106,635 38,960 ------------------------------------------------------------------------------------------------------------------------------------ Cash and Cash Equivalents 133,191 130,253 66,731 ------------------------------------------------------------------------------------------------------------------------------------ Interest bearing deposits with banks 1,955 3,785 2,320 Securities available for sale 802,665 687,620 746,483 Investment securities 54,174 98,773 65,753 Loans 1,143,921 926,205 1,007,973 Less: Allowance for loan losses (16,165) (12,161) (13,542) ------------------------------------------------------------------------------------------------------------------------------------ Loans, net 1,127,756 914,044 994,431 Bank premises and equipment, net 11,790 10,585 10,910 Other real estate 1,248 2,698 2,329 Other assets 50,689 51,963 54,432 ------------------------------------------------------------------------------------------------------------------------------------ Total Assets $ 2,183,468 $ 1,899,721 $ 1,943,389 ==================================================================================================================================== Liabilities and Stockholders' Equity: Deposits Non-interest bearing $ 122,195 $ 103,521 $ 114,405 Interest bearing 1,140,045 965,106 978,285 ------------------------------------------------------------------------------------------------------------------------------------ Total Deposits 1,262,240 1,068,627 1,092,690 ------------------------------------------------------------------------------------------------------------------------------------ Borrowed funds Securities sold under agreements to repurchase 10,000 10,000 10,000 Federal Home Loan Bank advances 746,002 665,337 695,008 Obligation for Employee Stock Ownership Plan (ESOP) 500 900 800 Other 1,261 1,222 1,305 ------------------------------------------------------------------------------------------------------------------------------------ Total Borrowed Funds 757,763 677,459 707,113 ------------------------------------------------------------------------------------------------------------------------------------ Trust preferred securities 32,500 32,500 32,500 Other liabilities 20,839 21,921 17,841 ------------------------------------------------------------------------------------------------------------------------------------ Total Liabilities $ 2,073,342 $ 1,800,507 $ 1,850,144 ------------------------------------------------------------------------------------------------------------------------------------ Stockholders' equity: Common stock: no par value 54,922 54,342 54,334 Surplus 2,205 2,205 2,205 Undivided profits 48,238 40,125 40,175 Treasury stock, at cost (3,030) (3,030) (3,030) Unallocated ESOP shares (500) (900) (800) Accumulated other comprehensive income 8,291 6,472 361 ------------------------------------------------------------------------------------------------------------------------------------ Total Stockholders' Equity 110,126 99,214 93,245 ------------------------------------------------------------------------------------------------------------------------------------ Total Liabilities and Stockholders' Equity $ 2,183,468 $ 1,899,721 $ 1,943,389 ====================================================================================================================================
Financial Summary Average Balances, Rates Paid and Yields
Three Months Ended Three Months Ended September 30, 2002 September 30, 2001 ------------------------------------------------------------------------------------------------------------------------------------ Average Average Average Yield/ Average Yield/ (in thousands) Balance Interest Rate Balance Interest Rate ------------------------------------------------------------------------------------------------------------------------------------ INTEREST EARNING ASSETS: Deposits with other banks $ 2,763 $ 14 2.03% $ 4,720 $ 59 5.00% Federal funds sold 66,629 296 1.78 101,143 860 3.40 Securities 909,095 11,231 4.94 773,740 11,668 6.03 Loans (1) 1,102,407 19,294 7.00 902,221 17,708 7.85 ------------------------------------------------------------------------------------------------------------------------------------ Total interest earning assets $ 2,080,894 $ 30,835 5.93% $ 1,781,824 $ 30,295 6.80% ==================================================================================================================================== NON-INTEREST EARNING ASSETS: Cash and due from banks $ 22,346 $ 21,947 Allowance for loan losses (15,213) (11,525) Premises and equipment, net 11,310 10,120 Other assets 51,187 51,170 ------------------------------------------------------------------------------------------------------------------------------------ Total non-interest earning assets 69,630 71,712 ------------------------------------------------------------------------------------------------------------------------------------ Total assets $ 2,150,524 $ 1,853,536 ==================================================================================================================================== INTEREST BEARING LIABILITIES: Deposits: Savings, money markets and interest bearing demand $ 554,185 $ 2,759 1.99% $ 319,143 $ 2,413 3.02% Certificates of deposit of $100,000 or more 143,696 1,233 3.43 130,298 1,831 5.62 Other time deposits 420,897 4,538 4.31 480,577 7,116 5.92 ------------------------------------------------------------------------------------------------------------------------------------ Total interest bearing deposits 1,118,778 8,530 3.05 930,018 11,360 4.89 Borrowed funds 753,875 9,414 4.99 675,726 9,253 5.48 Trust preferred securities 32,500 775 9.54 32,500 775 9.54 ------------------------------------------------------------------------------------------------------------------------------------ Total interest bearing liabilities $ 1,905,153 $ 18,719 3.93% $ 1,638,244 $ 21,388 5.22% ==================================================================================================================================== NON-INTEREST BEARING LIABILITIES: Demand deposits $ 119,167 $ 112,591 Other liabilities 18,936 16,397 Stockholders' equity 107,268 86,304 ------------------------------------------------------------------------------------------------------------------------------------ Total non-interest bearing liabilities and stockholders' equity $ 245,371 $ 215,292 ------------------------------------------------------------------------------------------------------------------------------------ Total liabilities and stockholders' equity $ 2,150,524 $ 1,853,536 ------------------------------------------------------------------------------------------------------------------------------------ Interest rate spread (2) 2.00% 1.58% ------------------------------------------------------------------------------------------------------------------------------------ Net interest income and margin (3) $ 12,116 2.33% $ 8,907 2.00% ------------------------------------------------------------------------------------------------------------------------------------ Net interest income and margin (tax equivalent basis)(4) $ 12,429 2.39% $ 9,191 2.06% ====================================================================================================================================
(1) Loan origination fees are considered an adjustment to interest income. For the purpose of calculating loan yields, average loan balances include nonaccrual loans with no related interest income. (2) The interest rate spread is the difference between the average yield on interest earning assets and the average rate paid on interest bearing liabilities. (3) The net interest margin is equal to net interest income divided by average interest earning assets. (4) In order to make pre-tax income and resultant yields on tax exempt investments and loans comparable to those on taxable investments and loans, a tax equivalent adjustment is made equally to interest income and interest expense with no effect on after tax income. The tax equivalent adjustment has been computed using a Federal income tax rate of 34% and has increased interest income by $313,000 and $284,000 for the three month periods ended September 30, 2002 and 2001, respectively. Financial Summary Average Balances, Rates Paid and Yields
Nine Months Ended Nine Months Ended September 30, 2002 September 30, 2001 ------------------------------------------------------------------------------------------------------------------------------------ Average Average Average Yield/ Average Yield/ (in thousands) Balance Interest Rate Balance Interest Rate ------------------------------------------------------------------------------------------------------------------------------------ INTEREST EARNING ASSETS: Deposits with other banks $ 2,947 $ 44 1.99% $ 4,045 $ 147 4.85% Federal funds sold 76,279 951 1.66 74,887 2,368 4.22 Securities 851,989 33,425 5.23 732,454 34,487 6.28 Loans (1) 1,056,545 55,205 6.97 863,739 52,651 8.13 ------------------------------------------------------------------------------------------------------------------------------------ Total interest earning assets $ 1,987,760 $ 89,625 6.01% $ 1,675,125 $ 89,653 7.14% ==================================================================================================================================== NON-INTEREST EARNING ASSETS: Cash and due from banks $ 22,570 $ 20,906 Allowance for loan losses (14,270) (11,286) Premises and equipment, net 11,195 9,852 Other assets 51,298 51,541 ------------------------------------------------------------------------------------------------------------------------------------ Total non-interest earning assets 70,793 71,013 ------------------------------------------------------------------------------------------------------------------------------------ Total assets $ 2,058,553 $ 1,746,138 ==================================================================================================================================== INTEREST BEARING LIABILITIES: Deposits: Savings, money markets and interest bearing demand $ 481,033 $ 8,486 2.35% $ 300,717 $ 7,328 3.25% Certificates of deposit of $100,000 or more 147,616 3,943 3.56 126,697 5,958 6.27 Other time deposits 437,972 13,469 4.10 452,603 21,126 6.22 ------------------------------------------------------------------------------------------------------------------------------------ Total interest bearing deposits 1,066,621 25,898 3.24 880,017 34,412 5.21 Borrowed funds 727,602 27,050 4.96 630,462 26,172 5.53 Trust preferred securities 32,500 2,325 9.54 30,565 2,177 9.50 ------------------------------------------------------------------------------------------------------------------------------------ Total interest bearing liabilities $ 1,826,723 $ 55,273 4.03% $ 1,541,044 $ 62,761 5.43% ==================================================================================================================================== NON-INTEREST BEARING LIABILITIES: Demand deposits $ 115,046 $ 102,133 Other liabilities 16,029 20,182 Stockholders' equity 100,755 82,779 ------------------------------------------------------------------------------------------------------------------------------------ Total non-interest bearing liabilities and stockholders' equity $ 231,830 $ 205,094 ------------------------------------------------------------------------------------------------------------------------------------ Total liabilities and stockholders' equity $ 2,058,553 $ 1,746,138 ------------------------------------------------------------------------------------------------------------------------------------ Interest rate spread (2) 1.98% 1.71% ------------------------------------------------------------------------------------------------------------------------------------ Net interest income and margin (3) $ 34,352 2.30% $ 26,892 2.14% ------------------------------------------------------------------------------------------------------------------------------------ Net interest income and margin (tax equivalent basis)(4) $ 35,281 2.37% $ 27,661 2.20% ====================================================================================================================================
(1) Loan origination fees are considered an adjustment to interest income. For the purpose of calculating loan yields, average loan balances include nonaccrual loans with no related interest income. (2) The interest rate spread is the difference between the average yield on interest earning assets and the average rate paid on interest bearing liabilities. (3) The net interest margin is equal to net interest income divided by average interest earning assets. (4) In order to make pre-tax income and resultant yields on tax exempt investments and loans comparable to those on taxable investments and loans, a tax equivalent adjustment is made equally to interest income and interest expense with no effect on after tax income. The tax equivalent adjustment has been computed using a Federal income tax rate of 34% and has increased interest income by $929,000 and $769,000 for the nine month periods ended September 30, 2002 and 2001, respectively.