East Penn Financial Corporation Announces Third Quarter Earnings.EMMAUS, Pa. -- East Penn East Penn may refer to:
The NASDAQ Capital Market exists for securities of smaller, less-capitalized companies (small caps) that do not qualify for :EPEN) reported net income of $2,401,000 for the nine months ended September 30, 2007, a decrease of $178,000, or 6.9%, as compared with net income of $2,579,000 for the nine months ended September 30, 2006. Diluted earnings per share diluted earnings per share
An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of were $0.38 per share for the first nine months of 2007 as compared with $0.41 per share for the same period in 2006. For the third quarter ended September 30, 2007, East Penn's net income was $711,000 as compared with $900,000 for the third quarter of 2006, a decline of $189,000, or 21.0%. Earnings and per share data reflect the impact of expenses incurred as a result of the pending merger of East Penn Financial Corporation and its subsidiary with Harleysville National Corporation. On May 16, 2007, a joint press release was issued announcing the signing of a definitive agreement, dated as of May 15, 2007, for East Penn Financial Corporation and its wholly owned subsidiary Wholly Owned Subsidiary
A subsidiary whose parent company owns 100% of its common stock.
In other words, the parent company owns the company outright and there are no minority owners. , East Penn Bank, to merge with and into Harleysville National Corporation. On a year to date basis, the Company recorded $555,000 (or $366,000 after tax) in merger related expenses, of which $296,000 (or $195,000 after tax) of those expenses were recorded in the third quarter.
Brent L. Peters, Chairman of the Board, President and Chief Executive Officer, commented: "Excluding the impact of merger related expenses on our financial results, our earnings trend continues to be favorable. If we were to eliminate such expenses from our operating results, net income for the first nine months of 2007 would have been $2,767,000, or 7.3%, ahead of net income for the first nine months of 2006 and $906,000 for the third quarter of 2007, or 0.7%, ahead of net income for the third quarter of 2006. Our financial performance for this year demonstrates our efforts to remain focused in growing our core banking business, improving our efficiency and safeguarding our asset quality."
The balance sheet continues to grow with assets increasing 3.4% to $440.4 million as of September 30, 2007 from $425.9 million as of September 30, 2006. Despite competitive pressures, asset growth was attributable to loan growth of 7.1%, which was primarily funded from deposit and cash management account growth of 6.3%. This growth was achieved even with the Bank's payment of $11 million in borrowings that have matured since September 30, 2006. In addition, the Bank remains steadfast in maintaining the quality of its assets. Non-performing assets were 0.30% of total assets at September 30, 2007 as compared with 0.24% at September 30, 2006. Net charge-offs as a percentage of average loans decreased to 0.04% for the third quarter of 2007 as compared with 0.06% for the third quarter of 2006.
The net interest margin calculated on a fully tax-equivalent basis for the third quarter ended September 30, 2007 was 3.46%, representing a 14 basis point decrease as compared with the net interest margin of 3.60% for the third quarter ended September 30, 2006. However, in comparing the second and third quarters of 2007, the net interest margin improved by four basis points from 3.42% at June 30, 2007. The improvement in the margin is attributable to increased yields from interest earning assets Earning Assets
Any income-earning asset owned by a company.
These assets are generally interest-bearing accounts, bonds, and securities available for sale.
See also: Asset, Asset Valuation, Earnings, Net Interest Margin , which offset the increase in cost of funds Cost of Funds
The interest rate paid on an outstanding loan.
Money isn't free! Cost of funds is the cost of borrowing money.
See also: Interest Rate
Cost of funds
Interest rate associated with borrowing money. associated with interest bearing liabilities.
Other income decreased $20,000, or 3.3% in the third quarter of 2007 as compared with the same period in 2006. There were no extraordinary transactions that contributed to this decrease.
For the three months ended September 30, 2007, other expenses increased $229,000, or 8.3%, to $3,002,000 compared to $2,773,000 for the three months ended September 30, 2006. The increase resulted primarily from recording expenses incurred as a result of the impending im·pend
intr.v. im·pend·ed, im·pend·ing, im·pends
1. To be about to occur: Her retirement is impending.
East Penn Financial Corporation is a locally owned and managed bank holding company headquartered in Emmaus, Pennsylvania Emmaus is a borough in Lehigh County, Pennsylvania, in the United States. It is located five miles southwest of Allentown, Pennsylvania, in the Lehigh Valley region of the state.
The population of Emmaus was 11,313 at the 2000 census. . Its principal banking subsidiary is East Penn Bank, a community bank that has been serving the Lehigh Valley The Lehigh Valley or the Allentown-Bethlehem-Easton, PA-NJ metropolitan area is a metropolitan region in eastern Pennsylvania and western New Jersey, in the United States. It is the third-most populated metropolitan region in Pennsylvania, after Philadelphia and Pittsburgh. through its nine branch locations. In accordance with the terms of the merger with Harleysville National Corporation, the Company plans to hold a special meeting of shareholders on November 1, 2007 at 6 pm at the Allen Organ Company, 3370 Route 100, Macungie, Pennsylvania Macungie is a borough in Lehigh County, Pennsylvania, in the United States. It is a suburb of Allentown, Pennsylvania in the Lehigh Valley region of the state.
Macungie is named after the Lenape word "Maguntsche", which means "feeding place for bears". to consider and vote upon the merger agreement. Upon shareholder approval, the merger is currently expected to be effective on or about November 16, 2007.
Additional information about East Penn Financial Corporation is available on its website at www.eastpennbank.com.
This press release may contain forward-looking statements forward-looking statement
A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. as defined by the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Actual results and trends could differ materially from those set forth in such statements due to various factors. Such factors include the possibility that increased demand or prices for the Company's financial services The examples and perspective in this article or section may not represent a worldwide view of the subject.
Please [ improve this article] or discuss the issue on the talk page. and products may not occur, changing economic and competitive conditions, technological developments, and other risks and uncertainties, including those detailed in East Penn Financial Corporation's filings with the Securities and Exchange Commission.
Harleysville National Corporation has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents Harleysville has filed with the SEC for more complete information about the issuer and this offering. You may get these documents for free by visiting EDGAR Edgar or Eadgar (both: ĕd`gər), 943?–975, king of the English (959–75), son of Edmund, king of Wessex. In 957 the Mercians and Northumbrians rebelled against Edgar's brother Edwy and chose Edgar as their king. on the SEC Web site at www.sec.gov. Alternatively, Harleysville will arrange to send you the prospectus if you request it by calling toll-free 1-800-423-3955, Extension 62305. You may also request these documents by e-mail addressed See Internet address.
e-mail address - electronic mail address to Harleysville at firstname.lastname@example.org. These documents are also available by accessing Harleysville's website at http://www.hncbank.com and clicking "Investor Information", then clicking "Documents", and clicking the most recent Registration Statement under "Other Filings".
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