Waypoint Financial, Inc. Releases Earnings for the Quarter Ended September 30, 2000 for Harris Financial, Inc. and York Financial Corp.Business Editors HARRISBURG Harrisburg, city (1990 pop. 52,376), state capital and seat of Dauphin co., SE Pa., on the Susquehanna River; settled c.1710 by John Harris, who established a trading post and operated a ferry there; inc. 1791. , Pa.--(BUSINESS WIRE)--Oct. 19, 2000 Charles Charles, archduke of Austria Charles, 1771–1847, archduke of Austria; brother of Holy Roman Emperor Francis II. Despite his epilepsy, he was the ablest Austrian commander in the French Revolutionary and Napoleonic wars; however, he was handicapped by C. Pearson Pear·son , Lester Bowles 1897-1972. Canadian politician who served as prime minister (1963-1968). He won the 1957 Nobel Peace Prize for his role in the negotiation of a solution to the Suez crisis (1956). , Jr., Chief Executive Officer and Co-Chairman of Waypoint way·point n. A point between major points on a route, as along a track. Financial Corp. (Nasdaq:WYPT WYPT Waypoint ) today announced earnings for the quarter ended September September: see month. 30, 2000. On October October: see month. 17, 2000, Waypoint Financial became the successor 1. SuccessoR - A language for distributed computing derived from SR. ["SuccessoR: Refinements to SR", R.A. Olsson et al, TR 84-3, U Arizona 1984]. 2. successor - daughter to Harris Harris, Scotland: see Lewis and Harris. Financial, Inc., and completed its acquisition by merger of York York, former name of Toronto, Canada York, Ont.: see Toronto, Ont., Canada. York, city, England York, city (1991 pop. 123,126) and district, North Yorkshire, N England, at the confluence of the Ouse and Foss rivers. Financial Corp. On the same date, Waypoint Financial also completed a $165.5 million stock offering, raising net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $154.3 million. Waypoint Financial issued a total of 38,407,538 shares of common stock in the transactions, including 1,564,000 shares that are held by an employee stock ownership plan and that are unallocated. Mr. Pearson commented, "We are extremely pleased with the successful completion of the merger and the stock offering as announced a few days ago. With the combined capital of Harris Financial and York Financial, and the net stock offering proceeds, Waypoint Financial will have a capital base in excess of $400 million. This is an obvious strength that will enable Waypoint to expand as a provider of a full range of 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. ." Prior to the completion of the stock offering and merger, Waypoint Financial had immaterial Not essential or necessary; not important or pertinent; not decisive; of no substantial consequence; without weight; of no material significance. immaterial adj. assets and liabilities, and therefore the following financial information is presented separately for Harris Financial and York Financial. Harris Financial, Inc. Mr. Pearson today announced the results of the former Harris Financial, Inc. Harris Financial recorded net income of $5.0 million for the quarter ended September 30, 2000. This compares to net income of $4.1 million for the quarter ended September 30, 1999. Fully-diluted earnings per share was $.15 for the quarter ended September 30, 2000 as compared to $.12 for the quarter ended September 30, 1999. Mr. Pearson noted that Harris Financial's earnings for the quarter ended September 30, 2000 were impacted by non-recurring items and by interest margin compression compression, external stress applied to an object or substance, tending to cause a decrease in volume (see pressure). Gases can be compressed easily, solids and liquids to a very small degree if at all. . Non-recurring earnings included after-tax af·ter-tax also af·ter·tax adj. Relating to or being that which remains after payment, especially of income taxes: after-tax profits. income of $1.1 million from a fraud recovery related to the acquisition of First Harrisburg Bancor in 1996. Also, Harris Financial conducted a securities sale and reinvestment Reinvestment Using dividends, interest and capital gains earned in an investment or mutual fund to purchase additional shares or units, rather than receiving the distributions in cash. 1. In terms of stocks, it is the reinvestment of dividends to purchase additional shares. program to improve its interest rate risk position and to position the securities portfolio for future yield improvement. This program resulted in after-tax income of $.8 million. Offsetting the non-recurring income during the quarter ended September 30, 2000 were non-recurring expense increases totaling $.5 million after taxes. Net interest income decreased $.6 million, or 4%, to $14.2 million for the quarter ended September 30, 2000, from $14.8 million recorded in the prior year period. The interest margin compression offset interest income improvement from growth in Harris Financial's commercial and consumer loans and commercial and retail deposits. Mr. Pearson also noted that Harris Financial continued to maintain excellent credit quality in its asset portfolios. Non-accrual loans and loans 90 days past due but still accruing decreased from $16.1 million at year end 1999 to $8.9 million at September 30, 2000 (or 0.62% of total loans). Harris Financial recorded net income of $13.6 million for the nine months ended September 30, 2000. This compares to net income of $13.8 million for the nine months ended September 30, 1999. Fully-diluted earnings per share were $.41 for both of the nine month periods ended September 30, 2000 and September 30, 1999. On October 6, 2000 Mr. Pearson announced that the Board of Directors of Harris Financial declared de·clare v. de·clared, de·clar·ing, de·clares v.tr. 1. To make known formally or officially. See Synonyms at announce. 2. To state emphatically or authoritatively; affirm. 3. a dividend of $.07 per share, which will be paid on October 30, 2000 to shareholders of record as of October 16, 2000. This dividend represents a regular dividend of $.06 per share for the quarter ended September 30, 2000 and a pro-rated dividend of $.01 per share for the portion of the following quarter that precedes the recently completed acquisition by merger of York Financial Corp., the mutual-to-stock conversion of Harris Financial, MHC MHC major histocompatibility complex. MHC abbr. major histocompatibility complex MHC major histocompatibility complex. , and the stock offering of Waypoint Financial Corp.
HARRIS FINANCIAL, INC. AND SUBSIDIARIES
Consolidated Statements of Financial Condition
(in thousands)
September 30, December 31, September 30,
2000 1999 1999
------------ ------------ ------------
(unaudited) (unaudited)
Assets
Cash and
Cash
Equivalents $ 34,681 $ 73,613 $ 56,834
Securities
and
Investments 1,362,052 1,257,603 1,249,016
Loans, Net 1,438,187 1,269,629 1,250,132
Other Assets 100,193 90,555 86,183
---------- ---------- ----------
Total Assets $2,935,113 $2,691,400 $2,642,165
========== ========== ==========
Liabilities and Stockholders' Equity
Deposits $1,501,530 $1,373,870 $1,296,151
Escrow 35,734 3,511 2,084
Borrowings 1,179,658 1,118,000 1,136,000
Other
Liabilities 37,188 26,695 29,871
---------- ---------- ----------
Total
Liabilities 2,754,110 2,522,076 2,464,106
---------- ---------- ----------
Stockholders'
Equity 181,003 169,324 178,059
---------- ---------- ----------
Total
Liabilities
and
Stockholders'
Equity $2,935,113 $2,691,400 $2,642,165
========== ========== ==========
HARRIS FINANCIAL, INC. AND SUBSIDIARIES
Consolidated Statements of Income
(in thousands)
Nine months ended Three months ended
September 30, September 30,
2000 1999 2000 1999
-------- -------- -------- --------
(unaudited) (unaudited)
Interest
income $150,945 $129,125 $ 52,811 $ 44,989
Interest
expense 104,036 83,235 37,709 29,421
-------- -------- -------- --------
Net
interest
income 46,909 45,890 15,102 15,568
Provision
for loan
loss 2,613 2,385 947 795
-------- -------- -------- --------
Net
interest
income
after
provision
for loan loss 44,296 43,505 14,155 14,773
Noninterest
income 9,946 9,046 4,633 2,879
Gain (loss) on
sale of
securities, net 1,356 963 1,342 (402)
Noninterest
expense 36,680 34,489 13,013 11,564
-------- -------- -------- --------
Income
before taxes 18,918 19,025 7,117 5,686
Income
tax expense 5,274 5,225 2,132 1,556
-------- -------- -------- --------
Net income $ 13,644 $ 13,800 $ 4,985 $ 4,130
======== ======== ======== ========
York Financial Corp. Mr. Pearson also announced today that York Financial recorded net income of $2.0 million for the quarter ended September 30, 2000. This compares to net income of $2.3 million for the quarter ended September 30, 1999. Fully-diluted earnings per share were $.20 for the quarter ended September 30, 2000 as compared to $.23 for the quarter ended September 30, 1999. Mr. Pearson noted York's earnings were reduced by interest margin compression and by reduced income tax savings during the quarter ended September 30, 2000 versus the prior year period. Net interest income decreased $.6 million, or 7%, to $8.1 million for the quarter ended September 30, 2000, from $8.7 million recorded in the prior year period. The interest margin compression offset interest income improvement from growth in the loan portfolios. Mr. Pearson also noted that the York Financial continued to maintain excellent credit quality in its asset portfolios. Non-accrual loans and loans 90 days past due but still accruing increased slightly from $7.2 million at June June: see month. 30, 2000 to $7.3 million at September 30, 2000 (or 0.65% of total loans). On October 11, 2000, the Board of Directors of York Financial declared a dividend of $.153 per share, which will be paid on October 30, 2000 to shareholders of record as of October 16, 2000. This dividend represents a regular dividend of $.130 per share for the quarter ended September 30, 2000 and a pro-rated dividend of $.023 per share for the portion of the following quarter that precedes the recently completed acquisition by merger of York Financial Corp. by Waypoint Financial Corp.
YORK FINANCIAL CORP. AND SUBSIDIARIES
Consolidated Statements of Financial Condition
(in thousands)
September 30, June 30, September 30,
2000 2000 1999
------------- ------------- -------------
(unaudited) (unaudited)
Assets
Cash and
Cash
Equivalents $ 35,102 $ 37,326 $ 31,366
Securities
and Investments 388,823 390,484 388,684
Loans, Net 1,205,828 1,175,626 1,058,311
Other Assets 72,977 70,209 67,852
---------- ---------- ----------
Total Assets $1,702,730 $1,673,645 $1,546,213
========== ========== ==========
Liabilities and Stockholders' Equity
Deposits $1,162,392 $1,170,728 $1,106,818
Escrow 2,854 5,302 1,900
Borrowings 408,579 370,390 301,985
Other
Liabilities 15,659 17,347 26,116
---------- ---------- ----------
Total
Liabilities 1,589,484 1,563,767 1,436,819
---------- ---------- ----------
Stockholders'
Equity 113,246 109,878 109,394
---------- ---------- ----------
Total Liabilities
and Stockholders'
Equity $ 1,702,730 $ 1,673,645 $1,546,213
========== ========== ==========
YORK FINANCIAL CORP. AND SUBSIDIARIES
Consolidated Statements of Income
(in thousands)
2000 1999
------- -------
(unaudited)
Interest income $29,680 $24,024
Interest expense 21,352 14,737
------- -------
------- -------
Net interest income 8,328 9,287
Provision for loan loss 260 600
------- -------
Net interest
income after
provision for
loan loss 8,068 8,687
Noninterest
income 2,099 1,354
Gain (loss)
on sale of
securities, net -- --
Noninterest expense 7,419 7,408
------- -------
Income before taxes 2,748 2,633
Income tax expense 720 304
------- -------
Net income $ 2,028 $ 2,329
======= =======
Waypoint Financial is the holding company for Harris Savings Bank savings bank, financial institution that, until recently, performed only the following functions: receiving savings deposits of individuals, investing them, and providing a modest return to its depositors in the form of interest. and York Federal Savings and Loan Association Federal Savings and Loan Association An institution chartered by the federal government whose primary function is to collect savings deposits and to provide mortgage loans. . Waypoint Financial intends to merge See mail merge and concatenate. Harris Savings Bank and York Federal later this month, and the combined bank will be operated as Waypoint Bank. Waypoint Financial operates 58 branches in five counties of south central Pennsylvania South Central Pennsylvania is a region of the U.S. state of Pennsylvania that includes the fourteen counties of Adams, Cumberland, Dauphin, Franklin, Huntingdon, Juniata, Lancaster, Lebanon, Mifflin, Northumberland, Perry, Schuylkill, Snyder, and York. and Washington County Washington County is the name of 30 counties and one parish in the United States of America, all named for George Washington. It is the most common county name in the United States. and Harford County, Maryland Harford County is a county in the U.S. state of Maryland. In 2004, its population was estimated to be 233,340. Its county seat is Bel Air. Harford County forms part of the Baltimore-Washington Metropolitan Area. . The assets of Waypoint Financial based on the combined assets of Harris Financial and York Financial as of September 30, 2000 totaled approximately $4.6 billion. |
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