Chester Valley Bancorp (NASDAQ:CVAL)
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From Jun 2019 to Jun 2024
Chester Valley Bancorp Inc. Reports Third Consecutive Quarter of
Record Earnings
DOWNINGTOWN, Pa., April 28 /PRNewswire-FirstCall/ -- Chester Valley Bancorp
Inc. announces that the Company posted its third consecutive quarter of record
earnings of $1.6 million or $0.32 per diluted share for the three months ended
March 31, 2004. This compared to earnings of $1.5 million or $0.30 per diluted
share for the three months ended March 31, 2003. Additionally, earnings for the
nine months ended March 31, 2004 were $4.7 million or $0.93 per diluted share,
an 8% increase over the nine-month period ended March 31, 2003.
At March 31, 2004, total assets increased to $630.1 million as the Company
completed its acquisition of the Coatesville branch from PNC Bank. As a result
of the acquisition, the Company assumed approximately $19.5 million in deposits
and acquired $4.0 million in consumer and commercial loans. The Coatesville
branch increased the number of full-service offices of the Company to 11 while
the Company has received regulatory approval to open a 12th branch office in
West Chester, Pennsylvania, which will focus primarily on private banking and
wealth management services.
At March 31, 2004, commercial and construction loans increased by 5.75% to
$207.7 million as compared to $196.4 million at June 30, 2003. Over the same
period, core deposits increased to $309.7 million as compared to $254.0
million, a 21.9% increase.
"Our Company has effectively completed the restructure of the balance sheet to
that of a commercial bank. We will remain focused on opportunities to increase
fee income, both internally as well as through potential acquisitions, which we
feel will enhance our existing branch network. We believe that the Coatesville
and West Chester locations will accomplish that objective and our commercial
loan department is strong and growing while our wealth management initiatives
will continue to augment our fee income," stated Donna M. Coughey, President &
CEO.
Net income for the three and nine months ended March 31, 2004 increased by
$125,000 and $349,000 as compared to the same periods in 2003. Net interest
income increased by $365,000 and $835,000 over the same three- and nine-month
periods due largely to the growth in average earning assets as well as an
improvement in the net interest margin. Contributing to the improved net
interest margin was lower funding costs attributed to a general decline in
market interest rates. In addition, the Company continues to reap the benefits
of interest rate swap transactions that were initiated in the first quarter to
hedge a portion of the Company's higher costing Federal Home Loan Bank
borrowings, as part of its ongoing interest rate risk management strategies.
Investment services income and service charges and fees increased $339,000 and
$629,000 for the three and nine months ended March 31, 2004, respectively. This
was due primarily to fees associated with core deposits as well as new personal
trust and investments business. Gains on securities available for sale were
$378,000 and $1.0 million for the three and nine months ended March 31, 2004.
These gains were due to the tender of a bond, portfolio restructuring done as
part of the Company's asset and liability management as well as the liquidation
of a portfolio of Community Bank stock investments.
Operating expenses increased 8.2% or $359,000 for the three months ended March
31, 2004 as compared to the three months ended March 31, 2003. The increase
was due largely to annual employee salary increases as well as the costs
associated with the opening of the Eagle branch in April 2003. For the nine
months ended March 31, 2004 as compared to the same period ended March 31,
2003, the increase in operating expenses was less pronounced at $941,000 or
7.2%, due largely to the aforementioned salary increases and branch opening as
well as legal costs associated with a Sarbanes-Oxley review performed on behalf
of the audit committee. The provision for loan losses was $180,000 and
$856,000 for the three and nine months ended March 31, 2004 as compared to a
negative $68,000 and $174,000 for the three and nine months ended March 31,
2003. The increase resulted principally from additions to the reserve to cover
loan growth as well as potentially increased risk due to the changing loan mix.
Total assets at March 31, 2004 increased to $630.1 million as compared to
$584.5 million at June 30, 2003. The $45.6 million increase was driven by loan
growth of $10.4 million, primarily within the Commercial loan portfolio, as
well as growth in the investment portfolio and interest-bearing deposits as the
Coatesville acquisition was effective March 31, 2004. The asset growth was
funded with both deposits and Federal Home Loan Bank advance borrowings.
Chester Valley Bancorp Inc. is the parent company of both First Financial Bank
and Philadelphia Corporation for Investment Services. First Financial's
executive offices are located in Downingtown, Pennsylvania with branches in
Exton, Frazer, Thorndale, Westtown, Airport Village, Brandywine Square, Devon,
Kennett Square, Eagle Square and Coatesville. Philadelphia Corporation has
offices in Wayne and Philadelphia.
Chester Valley Bancorp stock is traded on the NASDAQ market under the symbol
"CVAL".
CHESTER VALLEY BANCORP INC. AND SUBSIDIARIES
Selected Financial Data
(Dollars in Thousands Except for Per Share Amounts)
*** CONSOLIDATED OPERATIONS DATA:
Three months Ended Nine months Ended
March 31, March 31,
2004 2003 2004 2003
Total interest income $7,369 $7,672 $22,234 $24,139
Total interest expense 2,624 3,292 8,038 10,778
Net interest income 4,745 4,380 14,196 13,361
Provision for loan losses 180 (68) 856 174
Net interest income after
provision for loan losses 4,565 4,448 13,340 13,187
Total other income 2,313 1,826 6,897 5,675
Other operating expenses 4,744 4,385 14,043 13,102
Income before income taxes 2,134 1,889 6,194 5,760
Income tax expense 528 408 1,476 1,391
Net income $1,606 $1,481 $4,718 $4,369
Earnings per common share (1)
Basic $0.33 $0.31 $0.98 $0.92
Diluted $0.32 $0.30 $0.93 $0.89
*** CONSOLIDATED FINANCIAL CONDITION DATA:
March 31, June 30,
2004 2003 % Change
Total assets $630,050 $584,528 7.79%
Loans and loans held for
sale, net 395,244 384,828 2.71%
Deposits 420,068 400,586 4.86%
Total stockholders' equity 53,288 49,571 7.50%
*** OTHER SELECTED DATA:
Three-months Ended Nine-months Ended
March 31, March 31,
2004 2003 2004 2003
Average interest rate
spread (2) 3.36% 3.28% 3.41% 3.35%
Net yield on average
interest-earning assets (2) 3.48% 3.45% 3.47% 3.43%
Ratio of average
interest-earning assets to
average interest-bearing
liabilities 1.05 x 1.03 x 1.05 x 1.03 x
Non-performing assets
to total assets 0.69% 0.16% 0.69% 0.16%
Book value per
common share (1) $10.97 $9.94 $10.97 $9.94
Closing price of common stock
at end of period (1) $21.90 $21.53 $21.90 $21.53
Number of full-service offices
at end of period 11 9 11 9
(1) Per share amounts have been restated to reflect the effects of the 5%
stock dividend paid in September 2003.
(2) Percentages are presented on a taxable equivalent basis.
DATASOURCE: Chester Valley Bancorp Inc.
CONTACT: Joseph T. Crowley, Treasurer & Chief Financial Officer, Chester
Valley Bancorp, +1-610-269-9700 ext. 3085
Web site: http://www.ffbonline.com/