EX-99 3 exh99-1.txt EXH99-1.TXT Exhibit 99 YARDVILLE NATIONAL BANCORP Press Release FOR IMMEDIATE RELEASE For further information, contact: Stephen F. Carman, EVP & CFO (609) 631-6222 or consult "Investor Relations" on YNB's website: www.ynb.com YNB REPORTS FIRST QUARTER EARNINGS HAMILTON, N.J., April 22, 2003 -- Yardville National Bancorp (Nasdaq: YANB) today announced results for the first quarter ended March 31, 2003. For the quarter, YNB's net income declined modestly by $139,000 or 4.0% to $3.4 million compared with $3.5 million earned in the first quarter of 2002. Net interest income, the largest component of YNB's earnings, increased year-to-year by $1.7 million to $12.3 million from $10.6 million at March 31, 2002. This increase was offset by an increase in non-interest expenses as YNB continued to implement its retail strategy and also by a decrease in net securities gains. Net securities gains for the first quarter of 2003 were $151,000 as compared to $643,000 in the first quarter of 2002. Diluted earnings per share decreased 25.6 percent to $0.32 compared to $0.43 earned in the same period in 2002. The decrease in earnings per share reflects the higher average shares outstanding from the public common stock offering completed in December 2002 and, to a lesser extent, the decrease in net income. YNB sold 2.3 million shares and raised $34.3 million in net new capital from the recently completed common stock offering. "We experienced year-to-year growth of 15.8 percent in net interest income in the first quarter of 2003," noted YNB Chief Executive Officer and President Patrick M. Ryan. "Low interest rates, however, have delayed the goal of improving the net interest margin. While the uncertain economic climate and its impact on interest rates presents financial challenges in 2003, we believe the steps we are taking to expand our retail franchise will ultimately yield many benefits, including a lower cost of funds," he explained. YNB continued to experience strong loan and deposit growth in the first quarter of 2003. Commercial loan growth remains a strong driver of YNB's earnings. At March 31, 2003, YNB's total loans increased 18.5 percent over the same date a year ago, reaching $1.25 billion, compared with a total of $1.05 billion at the end of the first quarter of 2002. YNB has worked diligently to sustain asset quality. Nonperforming assets for the comparative period decreased 4.6 percent to $7.4 million from $7.8 million at March 31, 2002, and nonperforming assets as a percent of total assets also decreased to 0.32 percent at March 31, 2003, compared to 0.39 percent at the same date a year ago. The soft economy has had an effect, however, as YNB's net charge offs grew to $860,000 for the quarter ended March 31, 2003 compared with just $46,000 for the same period a year ago. In recognition that uncertainties in the regional economy may persist, which could result in higher levels of nonperforming assets and charge offs, YNB's allowance for loan losses totaled $16.6 million, or 1.33 percent of total loans, covering 297.1 percent of total nonperforming loans, at March 31, 2003. YNB's ongoing growth in loans continued to be primarily funded by an increasing deposit base. Total deposits at March 31, 2003 rose to $1.34 billion, a 17.8 percent increase over total deposits of $1.14 billion at March 31, 2002. The growth in YNB's deposit base was primarily in interest bearing demand and money market deposits. In addition, in the first quarter of 2003, YNB's "Simply Better Checking" product, introduced in the new markets of Hunterdon, Middlesex and Somerset Counties, attracted $25.4 million in deposits. YNB Chairman Jay Destribats noted, "Continued growth in deposits will be supported by YNB's new retail marketing campaign, 'Banking on a More Personal Level'. The campaign will feature advertising on billboards and regional advertising in national media as well as local newspapers." YNB plans to open its first branch in Somerville, Somerset County, NJ in May. "We are continuing our expansion northward," stated Mr. Ryan. "At the same time, we remain focused on further development of our strong core market in Mercer County. Our goal is to further develop YNB's earnings power and increase the value of our retail franchise," concluded Mr. Ryan. YNB continues to maintain a solid capital structure to fund future growth. At March 31, 2003, the institution's Tier 1 and risk-based capital ratios exceeded those required by regulatory guidelines to be considered well-capitalized. The quarterly cash dividend was increased 4.5% to $0.115 in January, marking the 37th consecutive quarter YNB has paid a cash dividend. In addition, YNB redeemed $11.5 million of 9.25% Trust Preferred Securities on March 31, 2003 with a portion of the proceeds of the new floating rate trust preferred offering completed on February 19, 2003. This transaction is expected to help reduce interest expense in 2003. As of March 31, 2003, YNB had $2.29 billion in assets, with nineteen branches serving individuals and businesses in Mercer, Hunterdon, Burlington and Middlesex Counties in New Jersey, and Bucks County, Pennsylvania. Located in the corridor between New York City and Philadelphia, YNB offers a broad range of lending, deposit and other financial products and services with an emphasis on commercial real estate and commercial and industrial lending. 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, regulatory requirements and Nasdaq standards, 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 March 31, -------------------------------------------------------------------------------------------------------------------- (in thousands, except per share amounts) 2003 2002 -------------------------------------------------------------------------------------------------------------------- Stock Information: Weighted average shares outstanding: Basic 10,397 8,012 Diluted 10,565 8,092 Shares outstanding end of period 10,399 8,012 Earnings per share: Basic $ 0.32 $ 0.44 Diluted 0.32 0.43 Dividends paid per share 0.115 0.11 Book value per share 14.09 11.55 Closing price per share 17.01 13.45 Closing price to book 120.72% 116.45% Key Ratios: Return on average assets 0.59% 0.71% Return on average stockholders' equity 9.18 14.72 Net interest margin (tax equivalent) 2.31 2.30 Equity-to-assets at period end 6.40 4.66 Tier 1 leverage ratio (1) 7.77 6.45 Asset Quality Data: Net loan charge-offs $ 860 $ 46 Nonperforming assets as a percentage of total assets 0.32% 0.39% Allowance for loan losses at period end as a percent of: Total loans 1.33 1.34 Nonperforming loans 297.11 257.39 Nonperforming assets at period end: Nonperforming loans $ 5,574 $ 5,457 Other real estate 1,848 2,322 -------------- ------------- Total nonperforming assets $ 7,422 $ 7,779 ============== =============
(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 March 31, ----------------------------------------------------------------------------------------------------- (in thousands, except per share amounts) 2003 2002 ----------------------------------------------------------------------------------------------------- INTEREST INCOME: Interest and fees on loans $ 20,054 $ 17,569 Interest on deposits with banks 7 16 Interest on securities available for sale 8,807 10,160 Interest on investment securities: Taxable 58 263 Exempt from Federal income tax 631 582 Interest on Federal funds sold 211 302 ----------------------------------------------------------------------------------------------------- Total Interest Income 29,768 28,892 ----------------------------------------------------------------------------------------------------- INTEREST EXPENSE: Interest on savings account deposits 2,640 2,784 Interest on certificates of deposit of $100,000 or more 1,058 1,385 Interest on other time deposits 3,853 4,633 Interest on borrowed funds 9,034 8,667 Interest on trust preferred securities 854 775 ----------------------------------------------------------------------------------------------------- Total Interest Expense 17,439 18,244 ----------------------------------------------------------------------------------------------------- Net Interest Income 12,329 10,648 Less provision for loan losses 600 550 ----------------------------------------------------------------------------------------------------- Net Interest Income After Provision for Loan Losses 11,729 10,098 ----------------------------------------------------------------------------------------------------- NON-INTEREST INCOME: Service charges on deposit accounts 547 516 Securities gains, net 151 643 Bank owned life insurance 509 411 Other non-interest income 365 332 ----------------------------------------------------------------------------------------------------- Total Non-Interest Income 1,572 1,902 ----------------------------------------------------------------------------------------------------- NON-INTEREST EXPENSE: Salaries and employee benefits 5,017 4,242 Occupancy expense, net 1,026 817 Equipment expense 690 544 Other non-interest expense 1,914 1,596 ----------------------------------------------------------------------------------------------------- Total Non-Interest Expense 8,647 7,199 ----------------------------------------------------------------------------------------------------- Income before income tax expense 4,654 4,801 Income tax expense 1,298 1,306 ----------------------------------------------------------------------------------------------------- Net Income $ 3,356 $ 3,495 ----------------------------------------------------------------------------------------------------- EARNINGS PER SHARE: Basic $ 0.32 $ 0.44 Diluted 0.32 0.43 ----------------------------------------------------------------------------------------------------- Weighted average shares outstanding: Basic 10,397 8,012 Diluted 10,565 8,092 -----------------------------------------------------------------------------------------------------
Yardville National Bancorp and Subsidiaries Consolidated Statements of Condition (Unaudited)
March 31, Dec. 31, --------------------------------------------------------------------------------------------- (in thousands) 2003 2002 2002 --------------------------------------------------------------------------------------------- Assets: Cash and due from banks $ 31,592 $ 21,281 $ 28,608 Federal funds sold 74,060 77,960 72,485 --------------------------------------------------------------------------------------------- Cash and Cash Equivalents 105,652 99,241 101,093 --------------------------------------------------------------------------------------------- Interest bearing deposits with banks 872 3,037 2,501 Securities available for sale 813,775 711,751 820,665 Investment securities 60,551 65,414 54,690 Loans 1,245,661 1,051,496 1,195,143 Less: Allowance for loan losses (16,561) (14,046) (16,821) --------------------------------------------------------------------------------------------- Loans, net 1,229,100 1,037,450 1,178,322 Bank premises and equipment, net 12,118 11,115 12,208 Other real estate 1,848 2,322 1,048 Bank owned life insurance 41,340 32,141 40,850 Other assets 23,373 24,737 20,081 --------------------------------------------------------------------------------------------- Total Assets $ 2,288,629 $ 1,987,208 $ 2,231,458 --------------------------------------------------------------------------------------------- Liabilities and Stockholders' Equity: Deposits Non-interest bearing $ 137,836 $ 114,129 $ 126,183 Interest bearing 1,201,266 1,022,436 1,146,103 --------------------------------------------------------------------------------------------- Total Deposits 1,339,102 1,136,565 1,272,286 --------------------------------------------------------------------------------------------- Borrowed funds Securities sold under agreements to repurchase 10,000 10,000 10,000 Federal Home Loan Bank advances 736,000 695,006 746,000 Obligation for Employee Stock Ownership Plan (ESOP) 300 700 400 Other 660 1,306 1,311 --------------------------------------------------------------------------------------------- Total Borrowed Funds 746,960 707,012 757,711 --------------------------------------------------------------------------------------------- Trust preferred securities 36,000 32,500 32,500 Other liabilities 20,081 18,614 23,022 --------------------------------------------------------------------------------------------- Total Liabilities $ 2,142,143 $ 1,894,691 $ 2,085,519 --------------------------------------------------------------------------------------------- Stockholders' equity: Common stock: no par value 89,377 54,337 89,297 Surplus 2,205 2,205 2,205 Undivided profits 52,793 42,785 50,633 Treasury stock, at cost (3,154) (3,030) (3,154) Unallocated ESOP shares (300) (700) (400) Accumulated other comprehensive income (loss) 5,565 (3,080) 7,358 --------------------------------------------------------------------------------------------- Total Stockholders' Equity 146,486 92,517 145,939 --------------------------------------------------------------------------------------------- Total Liabilities and Stockholders' Equity $ 2,288,629 $ 1,987,208 $ 2,231,458 ---------------------------------------------------------------------------------------------
Financial Summary Average Balances, Yields and Costs (Unaudited)
Three Months Ended March 31, 2003 -------------------------------------------------------------------------------------------------------------------- Average Average Yield/ (in thousands) Balance Interest Cost -------------------------------------------------------------------------------------------------------------------- INTEREST EARNING ASSETS: Deposits with other banks $ 1,395 $ 7 2.01% Federal funds sold 74,602 211 1.13 Securities 900,750 9,496 4.22 Loans (1) 1,216,904 20,054 6.59 -------------------------------------------------------------------------------------------------------------------- Total interest earning assets $ 2,193,651 $ 29,768 5.43% -------------------------------------------------------------------------------------------------------------------- NON-INTEREST EARNING ASSETS: Cash and due from banks $ 23,590 Allowance for loan losses (16,480) Premises and equipment, net 12,153 Other assets 62,077 -------------------------------------------------------------------------------------------------------------------- Total non-interest earning assets 81,340 -------------------------------------------------------------------------------------------------------------------- Total assets $ 2,274,991 -------------------------------------------------------------------------------------------------------------------- INTEREST BEARING LIABILITIES: Deposits: Savings, money markets and interest bearing demand $ 571,627 $ 2,640 1.85% Certificates of deposit of $100,000 or more 137,659 1,058 3.07 Other time deposits 465,956 3,853 3.31 -------------------------------------------------------------------------------------------------------------------- Total interest bearing deposits 1,175,242 7,551 2.57 Borrowed funds 757,238 9,034 4.77 Trust preferred securities 38,269 854 8.93 -------------------------------------------------------------------------------------------------------------------- Total interest bearing liabilities $ 1,970,749 $ 17,439 3.54% -------------------------------------------------------------------------------------------------------------------- NON-INTEREST BEARING LIABILITIES: Demand deposits $ 120,343 Other liabilities 37,640 Stockholders' equity 146,259 -------------------------------------------------------------------------------------------------------------------- Total non-interest bearing liabilities and stockholders' equity $ 304,242 -------------------------------------------------------------------------------------------------------------------- Total liabilities and stockholders' equity $ 2,274,991 -------------------------------------------------------------------------------------------------------------------- Interest rate spread (2) 1.89% -------------------------------------------------------------------------------------------------------------------- Net interest income and margin (3) $ 12,329 2.25% -------------------------------------------------------------------------------------------------------------------- Net interest income and margin (tax equivalent basis)(4) $ 12,665 2.31% --------------------------------------------------------------------------------------------------------------------
(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 present 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 to interest income. The tax equivalent adjustment has been computed using a Federal income tax rate of 34% and has increased interest income by $336,000 and $327,000 for the three month periods ended March 31, 2003 and 2002, respectively. Financial Summary Average Balances, Yields and Costs (Unaudited)
Three Months Ended March 31, 2002 -------------------------------------------------------------------------------------------------------------------- Average Average Yield/ (in thousands) Balance Interest Cost -------------------------------------------------------------------------------------------------------------------- INTEREST EARNING ASSETS: Deposits with other banks $ 2,637 $ 16 2.43% Federal funds sold 73,934 302 1.63 Securities 810,717 11,005 5.43 Loans (1) 1,018,134 17,569 6.90 -------------------------------------------------------------------------------------------------------------------- Total interest earning assets $ 1,905,422 $ 28,892 6.07% -------------------------------------------------------------------------------------------------------------------- NON-INTEREST EARNING ASSETS: Cash and due from banks $ 22,239 Allowance for loan losses (13,535) Premises and equipment, net 11,034 Other assets 50,687 -------------------------------------------------------------------------------------------------------------------- Total non-interest earning assets 70,425 -------------------------------------------------------------------------------------------------------------------- Total assets $ 1,975,847 -------------------------------------------------------------------------------------------------------------------- INTEREST BEARING LIABILITIES: Deposits: Savings, money markets and interest bearing demand $ 424,771 $ 2,784 2.62% Certificates of deposit of $100,000 or more 148,889 1,385 3.72 Other time deposits 442,876 4,633 4.18 -------------------------------------------------------------------------------------------------------------------- Total interest bearing deposits 1,016,536 8,802 3.46 Borrowed funds 708,516 8,667 4.89 Trust preferred securities 32,500 775 9.54 -------------------------------------------------------------------------------------------------------------------- Total interest bearing liabilities $ 1,757,552 $ 18,244 4.15% -------------------------------------------------------------------------------------------------------------------- NON-INTEREST BEARING LIABILITIES: Demand deposits $ 109,574 Other liabilities 13,773 Stockholders' equity 94,948 -------------------------------------------------------------------------------------------------------------------- Total non-interest bearing liabilities and stockholders' equity $ 218,295 -------------------------------------------------------------------------------------------------------------------- Total liabilities and stockholders' equity $ 1,975,847 -------------------------------------------------------------------------------------------------------------------- Interest rate spread (2) 1.92% -------------------------------------------------------------------------------------------------------------------- Net interest income and margin (3) $ 10,648 2.24% -------------------------------------------------------------------------------------------------------------------- Net interest income and margin (tax equivalent basis)(4) $ 10,975 2.30% --------------------------------------------------------------------------------------------------------------------
(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 present 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 to interest income. The tax equivalent adjustment has been computed using a Federal income tax rate of 34% and has increased interest income by $336,000 and $327,000 for the three month periods ended March 31, 2003 and 2002, respectively.