Printer Friendly

OMEGA EARNINGS UP 17.1 PERCENT

 STATE COLLEGE, Pa., July 21 /PRNewswire/ -- Omega Financial Corporation (NASDAQ: OMEF) posted a 17.1 percent increase in earnings for the first six months of 1993.
 The bank holding company, which operates The Russell National Bank headquartered in Lewistown and the Peoples National Bank of Central Pennsylvania headquartered in State College, earned $4.0 million for the first six months of 1993 compared to $3.4 million for the same period last year. Primary earnings per share were $1.12 for the first half of 1993, up 14 percent from 1992 when primary earnings per share were $.98.
 The 1993 earnings include the cumulative effect of an accounting change reported earlier. Prior to this adjustment, net income for 1993 was $3.6 million, 5.4 percent above 1992.
 During the second quarter, Omega added $1.9 million to its 1993 earnings, 4.9 percent higher than 1992's second quarter earnings of $1.8 million. Chairman and Chief Executive David B. Lee said that income from credit activities continued to be a mainstay of Omega's good performance.
 The quality of the loan portfolio was another factor in Omega's improved performance. Omega reduced its provision for loan losses to $366,000 in 1993 from $514,000 in 1992. Even with this reduction, Omega's ratio of loan reserve to net loans improved to 1.40 percent in 1993 from 1.31 percent in 1992.
 Omega's second quarter earnings also include a $293,000 gain on the sale of real estate mortgages. Lee said secondary market opportunities give Omega flexibility in the event of rate fluctuations and provide increased liquidity.
 "Like the rest of the banking industry, Omega has experienced pressure on its deposit levels as depositors look for higher rates, often in riskier non-bank investments," Lee said. Even with this pressure, Lee pointed out that Omega had less than a 2 percent decrease in deposits comparing 1993 to 1992.
 "We have been happy that both Russell and Peoples have maintained higher percentages of core deposits that peer banks," Lee said. "In this environment, just maintaining deposit levels spells success."
 Another source of additional liquidity for Omega will be deposits acquired in the purchase of two Mellon Bank offices. Lee said that the previously announced purchase has received regulatory approval and the conversion of the Mellon Allensville and Milesburg branches to Russell and Peoples offices has been set for Sept. 24.
 "Though the deposits in these offices will be helpful right now, we are more excited about welcoming these new customers and serving all their banking needs," Lee said. According to Lee, customers will begin receiving letters during the next several weeks explaining the changes.
 Omega, through its affiliates, currently operates 22 Pennsylvania banking offices in Centre, Clinton, Juniata and Mifflin counties. Certain key performance ratios are summarized as follows.
 OMEGA FINANCIAL CORPORATION AND SUBSIDIARIES
 Consolidated Financial Highlights
 (In thousands, except as indicated(A))
 For the Quarter Year to Date
 Pct. Pct.
 1993 1992(B) Change 1993 1992(B) Change
 Earnings:
 Net income before
 accounting
 change $1,876 $1,789 4.9 $3,605 $3,421 5.4
 Net income(C) 1,876 1,789 4.9 4,005 3,421 17.1
 Per share statistics(A):
 Fully diluted earnings
 before accounting
 change $.49 $.49 -- $.95 $.92 3.3
 Fully diluted
 earnings(C) $.49 $.49 -- $1.06 $.92 15.2
 Dividends declared -
 common $.15 $.12 25.0 $.28 $.24 16.7
 Dividends declared -
 preferred $.45 $.45 -- $.90 $.90 --
 Book value -
 common $17.13 $15.51 10.4 $17.13 $15.51 10.4
 Market value
 - High $27.00 $20.00 35.0 $27.00 $20.00 35.0
 - Low $21.50 $17.14 25.4 $18.50 $15.00 23.3
 Financial position at June 30:
 Assets 506,226 507,007 (0.2) 506,226 507,007 (0.2)
 Deposits 435,438 442,305 (1.6) 435,438 442,305 (1.6)
 Net loans 353,436 345,841 2.2 353,436 345,841 2.2
 Shareholders'
 equity 58,564 51,836 13.0 58,564 51,836 13.0
 Average balances:
 Assets 506,140 503,192 0.6 503,565 501,696 0.4
 Deposits 435,838 439,248 (0.8) 433,887 437,879 (0.9)
 Net loans 353,214 343,034 3.0 356,021 340,693 4.5
 Shareholders'
 equity 57,902 51,201 13.1 56,734 50,533 12.3
 Profitability ratios -
 annualized(A):
 Return on average assets
 before accounting
 change 1.48pct. 1.42pct. 4.2 1.43pct. 1.36pct. 5.1
 Return on average
 assets(C) 1.48 1.42 4.2 1.59 1.36 16.9
 Return on average equity
 before accounting
 change 12.96 13.98 (7.3) 12.71 13.54 (6.1)
 Return on average
 equity(C) 12.96 13.98 (7.3) 14.12 13.54 4.3
 Net interest margin
 - fully tax
 equivalent 5.19 5.43 (4.4) 5.25 5.31 (1.1)
 Number of shares outstanding
 at June 30(A):
 Common 3,419,727 3,341,465 2.3 3,419,727 3,341,465 2.3
 Preferred 219,781 219,781 -- 219,781 219,781 --
 Number of shareholders
 at June 30(A):
 Common 1,947 1,924 1.2 1,947 1,924 1.2
 Trust:
 Assets managed
 at June 30 $205,010 $176,706 16.0 $205,010 $176,706 16.0
 (B) Outstanding and per share information for 1992 has been restated to give effect to a 5 percent stock dividend in November of 1992.
 (C) After effect of change in accounting for taxes.
 /delval/
 -0- 7/21/93
 /CONTACT: Robert A. Frederick, director of public relations of Omega Financial, 814-231-5773/
 (OMEF)


CO: Omega Financial Corporation ST: Pennsylvania IN: FIN SU: ERN

DM-LJ -- PG011 -- 4072 07/21/93 15:08 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Jul 21, 1993
Words:968
Previous Article:PENNZOIL REPORTS SECOND QUARTER RESULTS
Next Article:PROVIDENT BANKSHARES REPORTS HIGHER EARNINGS, INCREASES DIVIDEND
Topics:


Related Articles
STRONG THIRD QUARTER EARNINGS, NATIONAL RANKING FOR OMEGA
1992 RECORD EARNINGS REPORTED BY OMEGA
OMEGA FIRST QUARTER EARNINGS UP
OMEGA EARNINGS UP 13.9 PERCENT
OMEGA REPORTS FIRST QUARTER EARNINGS
Omega Net Income Up 0.7%.
/C O R R E C T I O N -- Omega Financial Corporation/.
Omega Earnings Edge Up Slightly.
Omega Earnings Jump Nearly 18%.
Omega Financial Corporation Fourth Quarter Earnings Up 7.3%.

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters