Laurel Capital Group Announces Third Quarter Results

Laurel Capital Group Announces Third Quarter Results 


ALLISON PARK, Pa., April 23  /PRNewswire-FirstCall/ -- Laurel Capital Group,
Inc.  today reported net income for the three- and nine- month periods ended
March 31, 2004. Consolidated net income for the three- month period ended March
31, 2004 was $433,000 or $.22 per diluted share, a decrease of 23.6%, compared
to $567,000 or $.29 per diluted share for the same quarter in the prior year.
The decrease in earnings was primarily due to an increase in operating expenses
partially offset by the combined effects of an increase in net interest and
other income and a decrease in income tax expense.  The increase in operating
expenses was primarily attributable to expenses incurred from the operation of
two branch offices obtained as part of the acquisition of SFSB Holding Company
on March 28, 2003.

For the nine-month period ended March 31, 2004, the Company recorded
consolidated net income of $1,256,000 or $.63 per diluted share, a decrease of
36.5% compared to consolidated net income of $1,978,000 or $1.00 per share for
the nine months ended March 31, 2003.  The decrease in earnings for the nine-
month period was the result of both a decrease in net interest income combined
with increased operating expenses, partially offset by an increase in other
income and a decrease in income tax expense.

At March 31, 2004, Laurel Capital Group, Inc., had total assets of $301.3
million, total loans receivable, net of $168.4 million, and total deposits of
$247.7 million.  Stockholders' equity amounted to $27.5 million or $14.29 per
share at March 31, 2004, and $27.7 million or $14.71 per share at June 30,
2003.  The decrease in stockholders' equity per share from June 30, 2003 to
March 31, 2004 was primarily due to a decrease in total stockholders' equity
combined with an increase in the number of shares outstanding due to the
exercise of stock options.

Laurel Capital Group, Inc., headquartered in Allison Park, Pennsylvania, is the
holding company for Laurel Savings Bank. The Bank is a 116-year-old,
Pennsylvania-chartered, FDIC-insured savings bank with eight full-service
offices located in Allegheny and Butler counties offering a wide variety of
financial services and products to customers throughout the Pittsburgh
metropolitan area.

The Company's filings with the Securities and Exchange Commission are available
electronically on the Internet and can be found at
http://www.sec.gov/edgar/searchedgar/webusers.htm .

This news release may contain forward-looking statements as defined in the
Private Securities Litigation Reform Act of 1995. Such forward-looking
statements are subject to risk and uncertainties which could cause actual
results to differ materially from those currently anticipated due to a number
of factors. Such factors include, but are not limited to, changes in interest
rates which could affect net interest margins and net interest income, the
possibility that increased demand or prices for the Company's financial
services and products may not occur, changing economic and competitive
conditions, technological developments, and other risks and uncertainties,
including those detailed in the Company's filings with the Securities and
Exchange Commission.

  LAUREL CAPITAL GROUP, INC.
  Selected Consolidated Financial Data
  March 31, 2004
                                                       Year-To-Date
  (Dollars in thousands, except
   per share data)                          At or For The Nine Months Ended:

  Unaudited                                     March 31,         March 31,
                                                    2004              2003

  Earnings
  Interest Income                                 $9,951           $11,313
  Interest Expense                                 4,703             5,833
     Net Interest Income Before Provision for
      Loan Losses                                  5,248             5,480
  Provision for Loan Losses                            9                 9

     Net Interest Income after Provision for
      Loan Losses                                  5,239             5,471

  Net Gain on Sale of Investment and Mortgage-
   Backed Securities                                  35                 4
  Gain on Sale of Loans Held for Sale                  7                 7
  Other Income                                     1,097               642
  Operating Expenses                               4,670             3,258

  Income before Income Taxes                       1,708             2,866

  Provision for Income Taxes                         452               888

  Net Income                                      $1,256            $1,978

  Profitability Ratios (annualized)
  Return on Average Assets                          0.54%             0.96%
  Return on Average Stockholders' Equity            6.13%             9.76%
  Yield on Interest-Earning Assets                  4.56%             5.66%
  Cost of Interest-Bearing Liabilities              2.40%             3.37%
  Average Interest Rate Spread                      2.16%             2.29%
  Net Interest Margin                               2.41%             2.74%
  Operating Expenses to Average Assets              2.02%             1.58%
  Efficiency Ratio (1)                             73.72%            53.02%

  Per Common Share Data
  Shares Outstanding                            1,925,228         1,882,664
  Average Shares Outstanding-Basic              1,890,728         1,880,767
  Average Shares Outstanding-Diluted            1,987,200         1,982,897
  Earnings Per Share -Basic                         $0.66             $1.05
  Earnings Per Share -Diluted                       $0.63             $1.00
  Cash Dividends Paid                               $0.60             $0.57
  Book Value (period end)                          $14.29            $14.55
  Market Value (period end closing sales price)   $23.740           $19.010

  (1) Total operating expenses (excluding net income or (loss) on other
  real estate owned) divided by total operating income (excluding gains on
  sale of assets available for sale).  Gains and losses on the sales of
  assets available for sale are excluded since they are generally considered
  by the Company's management to be non-recurring in nature.  Similarly, net
  income or loss on other real estate owned is excluded since it is
  generally considered by the Company's management to be non-recuring in
  nature.  The efficiency ratio is not a financial measurement required by
  Generally Accepted Accounting Principles in the United States of America.
  However, the Company believes such information is useful to investors in
  evaluating the Company's operation.

  As a result of rounding, the sum of quarterly amounts may not equal the
  year-to-date amounts.


  LAUREL CAPITAL GROUP, INC.
  Selected Consolidated Financial Data
  March 31, 2004
                                                 Fiscal 2004
  (Dollars in thousands, except per
   share data)                          At or For The Three Months Ended:

  Unaudited                             March 31, December 31, September 30,
                                            2004         2003          2003

  Earnings
  Interest Income                         $3,316       $3,168        $3,467
  Interest Expense                         1,471        1,532         1,700
     Net Interest Income Before
      Provision for Loan Losses            1,845        1,636         1,767
  Provision for Loan Losses                    3            3             3

     Net Interest Income after
      Provision for Loan Losses            1,842        1,633         1,764

  Net Gain on Sale of Investment and
   Mortgage-Backed Securities                 22           13             0
  Gain on Sale of Loans Held for Sale          0            1             6
  Other Income                               339          344           414
  Operating Expenses                       1,577        1,583         1,510

  Income before Income Taxes                 626          408           674

  Provision for Income Taxes                 193           55           204

  Net Income                                $433         $353          $470

  Profitability Ratios (annualized)
  Return on Average Assets                  0.57%        0.46%         0.60%
  Return on Average Stockholders' Equity    6.32%        5.20%         6.85%
  Yield on Interest-Earning Assets          4.65%        4.40%         4.64%
  Cost of Interest-Bearing Liabilities      2.32%        2.37%         2.48%
  Average Interest Rate Spread              2.33%        2.03%         2.16%
  Net Interest Margin                       2.59%        2.27%         2.36%
  Operating Expenses to Average Assets      2.09%        2.08%         2.53%
  Efficiency Ratio (1)                     72.59%       79.86%        69.23%

  Per Common Share Data
  Shares Outstanding                    1,925,228    1,879,354     1,885,410
  Average Shares Outstanding-Basic      1,904,878    1,879,262     1,883,871
  Average Shares Outstanding-Diluted    1,992,913    1,974,863     1,985,873
  Earnings Per Share -Basic                 $0.23        $0.19         $0.25
  Earnings Per Share -Diluted               $0.22        $0.18         $0.24
  Cash Dividends Paid                       $0.20        $0.20         $0.20
  Book Value (period end)                  $14.29       $14.42        $14.59
  Market Value (period end closing
   sales price)                           $23.740      $24.750       $20.690

  (1) Total operating expenses (excluding net income or (loss) on other
  real estate owned) divided by total operating income (excluding gains on
  sale of assets available for sale).  Gains and losses on the sales of
  assets available for sale are excluded since they are generally considered
  by the Company's management to be non-recurring in nature.  Similarly, net
  income or loss on other real estate owned is excluded since it is
  generally considered by the Company's management to be non-recuring in
  nature.  The efficiency ratio is not a financial measurement required by
  Generally Accepted Accounting Principles in the United States of America.
  However, the Company believes such information is useful to investors in
  evaluating the Company's operation.

  As a result of rounding, the sum of quarterly amounts may not equal the
  year-to-date amounts.


  LAUREL CAPITAL GROUP, INC.
  Selected Consolidated Financial Data
  March 31, 2004
                                                Fiscal 2003
  (Dollars in thousands, except per
  share data)                         At or For The Three Months Ended:

  Unaudited                    June 30, March 31, December 31, September 30,
                                  2003      2003         2002          2002

  Earnings
  Interest Income               $3,884    $3,564       $3,787        $3,962
  Interest Expense               1,818     1,776        1,956         2,101
     Net Interest Income Before
      Provision for
  Loan Losses                    2,066     1,788        1,831         1,861
  Provision for Loan Losses          3         3            3             3

     Net Interest Income after
      Provision for Loan Losses  2,063     1,785        1,828         1,858

  Net Gain on Sale of Investment
   and Mortgage-Backed Securities    0         0            0             4
  Gain on Sale of Loans Held
   for Sale                          4         0            2             5
  Other Income                     267       203          237           202
  Operating Expenses             1,541     1,183        1,029         1,045

  Income before Income Taxes       793       805        1,038         1,024

  Provision for Income Taxes       237       238          328           322

  Net Income                      $556      $567         $710          $702

  Profitability Ratios (annualized)
  Return on Average Assets        0.72%     0.83%        1.04%         1.01%
  Return on Average Stockholders'
   Equity                         8.04%     8.29%       10.51%        10.49%
  Yield on Interest-Earning
   Assets                         5.11%     5.47%        5.71%         5.84%
  Cost of Interest-Bearing
   Liabilities                    2.71%     3.16%        3.38%         3.57%
  Average Interest Rate Spread    2.40%     2.31%        2.33%         2.27%
  Net Interest Margin             2.72%     2.72%        2.76%         2.73%
  Operating Expenses to Average
   Assets                         1.99%     1.73%        1.50%         1.50%
  Efficiency Ratio (1)           65.20%    59.37%       49.42%        50.46%

  Per Common Share Data
  Shares Outstanding          1,882,231 1,882,664    1,877,092     1,883,837
  Average Shares
   Outstanding-Basic          1,881,398 1,881,271    1,878,552     1,882,328
  Average Shares
   Outstanding-Diluted        1,978,759 1,976,353    1,981,252     1,990,999
  Earnings Per Share -Basic       $0.30     $0.30        $0.38         $0.37
  Earnings Per Share -Diluted     $0.28     $0.29        $0.36         $0.35
  Cash Dividends Paid             $0.19     $0.19        $0.19         $0.19
  Book Value (period end)        $14.71    $14.55       $14.49        $14.39
  Market Value (period end
   closing sales price)         $21.240   $19.010      $19.220       $19.750

  (1) Total operating expenses (excluding net income or (loss) on other
  real estate owned) divided by total operating income (excluding gains on
  sale of assets available for sale).  Gains and losses on the sales of
  assets available for sale are excluded since they are generally considered
  by the Company's management to be non-recurring in nature.  Similarly, net
  income or loss on other real estate owned is excluded since it is
  generally considered by the Company's management to be non-recuring in
  nature.  The efficiency ratio is not a financial measurement required by
  Generally Accepted Accounting Principles in the United States of America.
  However, the Company believes such information is useful to investors in
  evaluating the Company's operation.

  As a result of rounding, the sum of quarterly amounts may not equal the
  year-to-date amounts.


  LAUREL CAPITAL GROUP, INC.
  Selected Consolidated Financial Data
  March 31, 2004

    (Dollars in thousands)                       Fiscal 2004
                                       March 31,  December 31, September 30,
       (Unaudited)                        2004        2003         2003

  Balance Sheet Data (As Of)
  Total Assets                          $301,251    $302,725    $307,278

  Mortgage Loans                         127,900     118,205     114,799
  Commercial and Other Loans               2,269       2,254       3,012
  Consumer Loans                          38,247      39,551      40,172
  Total Loans Receivable, Net            168,416     160,010     157,983

  Cash and Investment Securities          99,038     113,575     120,175
  Mortgage-Backed Securities              15,452      10,640      10,397
  Savings Deposits                       247,677     248,803     251,236
  FHLB Advances                           21,610      21,612      24,632
  Stockholders' Equity                    27,519      27,145      27,509

  Asset Quality (As Of)
  Non-Performing Loans                    $1,741      $1,595      $1,142
  Non-Performing Assets                    1,753       1,608       1,157
  Allowance for Loan Losses                2,017       1,984       2,005
  Net Loan Charge-Offs (Recoveries)           (5)         28           4
  Non-Performing Loans to Total
     Loans, Net                            1.03%       1.00%       0.72%
  Allowance for Loan Losses/
       Total Loans                         1.20%       1.24%       1.27%
  Allowance for Loan Losses/
       Non-Performing Loans              115.85%     124.39%     175.57%
  Net Loan Charge-Offs
     (Recoveries)/Avg Loans
       (Annualized)                     -0.0040%     0.0170%     0.0023%

  Ratios (As Of)
  Dividend Payout Ratio                   95.24%      95.24%      83.33%
  Average Equity to Average Assets         8.87%       8.77%       8.68%
  Core Capital - Tier I                    7.70%       7.63%       7.22%
  Risk-Based Capital -Tier I              15.30%      15.39%      14.82%
  Risk-Based Capital -Tier II             16.60%      16.69%      16.08%
  Leverage Multiple (2)                   10.95x      11.15x      11.17x

  Other Data (As Of)
  Shareholders of Record                    387         393         395
  Number of Full-Service Banking
   Offices                                    8           8           8

   (2)  Assets divided by stockholders equity.


  LAUREL CAPITAL GROUP, INC.
  Selected Consolidated Financial Data
  March 31, 2004

    (Dollars in                                                     Fiscal
    thousands)                       Fiscal 2003                     2002
    (Unaudited)             June 30,  March 31,  Dec. 31, Sept. 30, June 30,
                             2003       2003      2002      2002      2002

  Balance Sheet Data
   (As Of)
  Total Assets             $322,783  $316,755  $271,146  $276,414 $278,061

  Mortgage Loans            133,518   143,151   133,499   140,174  144,104
  Commercial and Other
   Loans                      3,012     1,052     1,904     2,030    1,560
  Consumer Loans             44,672    42,968    35,074    34,900   34,461
  Total Loans
   Receivable, Net          181,202   187,171   170,477   177,104  180,125

  Cash and Investment
   Securities               109,168    99,668    85,594    85,169   84,928
  Mortgage-Backed
   Securities                13,505    16,031     9,927     9,612    8,038
  Savings Deposits          265,580   259,388   218,761   224,092  225,419
  FHLB Advances              24,672    24,713    21,618    21,619   21,620
  Stockholders' Equity       27,684    27,385    27,202    27,113   26,553

  Asset Quality (As Of)
  Non-Performing Loans         $956     $953       $149      $275     $196
  Non-Performing Assets         956    1,083        304       404      327
  Allowance for Loan
   Losses                     2,006    2,014      1,794     1,791    1,803
  Net Loan Charge-Offs
   (Recoveries)                  18        8         15        15      (27)
  Non-Performing Loans
  to Total Loans, Net         0.53%    0.51%      0.09%     0.16%    0.11%
  Allowance for Loan
   Losses/
     Total Loans              1.11%    1.08%      1.05%     1.01%    1.00%
  Allowance for Loan
   Losses/
     Non-Performing
      Loans                 209.83%  211.33%   1204.03%   651.27%  919.90%
  Net Loan Charge-Offs
   (Recoveries)/Avg
   Loans
     (Annualized)           0.0103%  0.0062%   0.0086%    0.0084% (0.0153%)

  Ratios (As Of)
  Dividend Payout Ratio      59.38%   57.00%    53.52%    54.29%    47.68%
  Average Equity to
   Average Assets             9.52%    9.82%     9.74%     9.63%    10.24%
  Core Capital - Tier I       7.51%    8.45%     9.57%     9.31%     9.49%
  Risk-Based Capital -
   Tier I                    13.82%   11.65%    18.68%    17.73%    17.97%
  Risk-Based Capital -
   Tier II                   15.04%   12.69%    19.98%    18.97%    19.29%
  Leverage Multiple (2)      11.66x   11.57x     9.97x    10.19x    10.47x

  Other Data (As Of)
  Shareholders of
   Record                       401      402       406       410       412
  Number of Full-
   Service Banking
   Offices                        8        8         6         6         6

 (2)  Assets divided by stockholders equity.


DATASOURCE: Laurel Capital Group, Inc.



CONTACT:  Edwin R. Maus, President/CEO, [phone] Ext. 303, or

, or John A. Howard, Jr., SVP/CFO, [phone]

Ext. 311, or , both of Laurel Capital Group, Inc.



Web site:  http://www.sec.gov/edgar/searchedgar/webusers.htm 

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