Susquehanna Bancshares, Inc. Announces Third Quarter Results.LITITZ, Pa. -- Susquehanna Susquehanna (səskwĭhăn`ə), river, 444 mi (715 km) long, rising in Otsego Lake, at Cooperstown, N.Y., and zigzagging SE and SW through E central Pa. to Chesapeake Bay near Havre de Grace, Md. Bancshares, Inc., (Susquehanna) (Nasdaq:SUSQ) today announced net income for the third quarter of 2007 was $19.9 million, or $0.38 per diluted di·lutetr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, compared to $25.2 million, or $0.49 per diluted share, for the third quarter 2006. Net income for the first nine months of 2007 was $50.4 million, or $0.97 per diluted share, compared to $62.3 million, or $1.25 per diluted share for the first nine months of 2006. Excluding the June June: see month. 2007 investment restructuring charge restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. , net income for the first nine months of 2007 was $58.1 million or $1.11 per diluted share. Results for the third quarter of 2006 also included a pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta loan securitization Securitization The process of creating a financial instrument by combining other financial assets and then marketing them to investors. Notes: Mortgage backed securities are a perfect example of securitization. May also be spelled as "securitisation. gain of $8.2 million. Third Quarter Financial Highlights:
-- Net loans and leases, excluding securitizations, grew 10% from
September 30, 2006 to $5.8 billion.
-- Commercial loans increased 26% to $1.2 billion at September
30, 2007.
-- Secured residential real estate loans increased 11% to $1.3
billion at September 30, 2007.
-- Secured commercial real estate loans increased 3% to $1.6
billion at September 30, 2007.
-- Total deposits increased 2% to $6.0 billion from September 30,
2006.
-- Net interest margin for the third quarter decreased 12 basis
points to 3.64% compared to 3.76% for the third quarter of 2006.
-- Net charge-offs as a percentage of average loans and leases for
the quarter ended September 30, 2007 were 0.39% compared to 0.08%
for the third quarter of 2006. This increase was primarily due to
a $2.5 million charge-off on a commercial real estate credit in
Pennsylvania during the third quarter of 2007.
-- Wealth management fee income increased 16% to $8.1 million from
$6.9 million in the third quarter of 2006. Commission income from
property and casualty insurance sales increased 5% to $2.6 million
from $2.4 million for the same period.
-- Wealth management assets under management and administration
increased 14% to $5.7 billion at September 30, 2007 from $5.0
billion at September 30, 2006.
Equity capital was $942 million at September September: see month. 30, 2007 or $18.05 per share, compared to $929 million, or $17.92 per share at September 30, 2006. Return on average assets and average tangible equity(1) for the third quarter of 2007 finished at 0.93% and 13.83%, respectively. This compared to results of 1.21% and 18.32%, for the same measurements, respectively for the third quarter of 2006. (1)A non-GAAP-based financial measure. The most comparable GAAP-based measurement for return on average tangible equity is return on average equity. A reconciliation of the differences between non-GAAP-based and GAAP-based measurements can be found at the end of this release under the heading "Supplemental Reporting of Non-GAAP-Based Financial Measures." Linked Quarter Highlights (Third Quarter 2007 vs. Second Quarter 2007)
-- Net loans and leases grew 5% from June 30, 2007.
-- Commercial loans increased 9% to $1.2 billion from June 30,
2007.
-- Secured residential real estate loans increased 5% to $1.3
billion from June 30, 2007.
-- Secured commercial real estate loans increased 4% to $1.6
billion from June 30, 2007.
-- Total deposits were flat at $6.0 billion compared to June 30,
2007.
-- Net interest margin decreased 3 basis points to 3.64% compared to
the second quarter of 2007.
-- Non-performing assets as a percent of loans, leases and other real
estate owned was unchanged at 0.66% while loan loss reserve as a
percentage of non-performing loans and leases improved to 206.48%
from 191.52% at June 30, 2007.
Additional Activity:
-- On September 5, 2007, Susquehanna Bancshares' Board of Directors
increased the quarterly cash dividend to $0.26 per share, an
increase of 4% from the previous quarterly dividend. Susquehanna
has increased its dividend each year since it was founded in 1982.
-- During separate meetings on October 2, 2007, shareholders of
Susquehanna Bancshares Inc. and Community Banks Inc. approved
Susquehanna's pending acquisition of Community. The acquisition is
scheduled to be completed on or about November 16, 2007, pending
regulatory approvals. Once it is completed, Susquehanna will have
more than $12 billion in assets and more than 230 branches in the
Mid-Atlantic region.
-- Susquehanna Bank DV, the affiliate operating in southern New
Jersey and eastern Pennsylvania, moved its executive offices into
the new Ferry Terminal Building in Camden, N.J., on October 5. The
new location, which overlooks the Delaware River and
Philadelphia's skyline, is centrally located in the bank's market
territory.
-- Susquehanna Bank, which operates in Maryland, West Virginia and
south-central Pennsylvania, had two branch openings in the third
quarter, in Waynesboro, Pa., and Forest Hill, Md.
"We are pleased to report strong loan growth for the quarter, particularly in commercial, secured residential, and secured commercial real estate loans," said William William, crown prince of Germany William or Frederick William, 1882–1951, crown prince of Germany, son of William II. In World War I he commanded (1914) an army on the Western Front and was nominal commander in the German attack J. Reuter, Chairman, President and Chief Executive Officer. "While we did see an increase in net charge-offs for the quarter, our year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. net charge-offs to average loan and lease ratio is 25 basis points, which is within our historical norms." Susquehanna will broadcast its third quarter 2007 results conference call over the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the on October 24, 2007 at 11:00 a.m. Eastern time. The conference call will include management's discussion of third quarter 2007 results. The discussion may also include forward-looking information and financial goals. Investors will have the opportunity to listen to the conference call through a live broadcast on Susquehanna's Web site. The event may be accessed by selecting "Investor Relations Investor relations The process by which the corporation communicates with its investors. " at the top right of the home page and clicking on the third quarter webcast link. To listen to the live call, please go to the Web site at least fifteen minutes prior to the scheduled start time to download To receive a file transmitted over a network. In any communications session, "download" means receive, and "upload" means send. The download/upload often implies a big/little scenario, in which data is being downloaded from the "big" server into the "little" user's computer. and install any necessary audio software. For those who are unable to listen to the live broadcast, an archived replay and podcast (iPOD broadCAST) An audio broadcast that has been converted to an MP3 file or other audio file format for playback in a digital music player or computer. The "pod" in podcast was coined from "iPod," the predominant portable, digital music player, and although podcasts are will be available on the Web site shortly after the call concludes. Susquehanna Bancshares, Inc., is a 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. holding company with assets of $8.7 billion. It includes three commercial banks that provide financial services at 163 branch locations and 173 ATM locations in the mid-Atlantic region. Through Susquehanna Wealth Management, the company offers investment, fiduciary fiduciary (fĭd  `shēĕ'rē), in law, a person who is obliged to discharge faithfully a responsibility of trust toward another. , brokerage,
insurance, retirement planning Retirement financial planning refers to a collection of systems, methods, and processes which, in their aggregate, support a family unit's (client's) desire to achieve a state of financial independence, such that the need to be gainfully employed is optional. , and private banking services.
Susquehanna also operates an insurance and employee benefits company, a
commercial finance company, and a vehicle leasing Vehicle leasing refers to leasing the use of a motor vehicle for a fixed or indefinite period of time. It is commonly offered by dealers as an alternative to vehicle purchase. company. For more
information, please visit www.susquehanna.net.
This press release contains certain financial information determined by methods other than in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). . Susquehanna's management uses these non-GAAP measures in its analysis of the company's performance. These non-GAAP financial measures require management to make judgments about the exclusion of certain items, and if different judgments were made, the amounts reported would be different. These measures typically exclude the effects of intangibles and related amortization and include the tax benefit associated with revenue items that are tax-exempt. Disclosures regarding these non-GAAP financial measures are included in the accompanying financial information. The presentation of these non-GAAP financial measures is intended to supplement investors' understanding of Susquehanna's core business activities. These non-GAAP disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures which may be presented by other companies. This press release contains "forward-looking" statements as defined in 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 that are based on Susquehanna's current expectations, estimates and projections about future events and financial trends affecting the financial condition of its business. These statements are not historical facts or guarantees of future performance, events or results. Such statements involve potential risks and uncertainties. Accordingly, actual results may differ materially. Susquehanna undertakes no obligation to publicly update or revise any 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. , whether as a result of new information, future events or otherwise. [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] |
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