Unizan Financial (NASDAQ:UNIZ)
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Unizan Financial Corp. Revises Full-Year 2003 Guidance
CANTON, Ohio, Dec. 2 /PRNewswire-FirstCall/ -- Unizan Financial Corp. , today
announced that the Company's earnings for the fourth quarter and full-year 2003
will be impacted by a one-time charge related to the recently announced
resignation of its chief financial officer. Unizan estimates that the total
after-tax expense to the Company under an existing severance agreement with Mr.
Pennetti will be approximately $2.2 million, or $0.10 per common share.
The Company also stated that it continues to experience greater than anticipated
net interest margin compression as the yield on loans and securities have
declined more rapidly than the Company's ability to lower its borrowings and
deposit costs which have been limited due to the repricing and maturity
structure of these instruments. It is projected that the net interest margin for
the fourth quarter will be approximately 2.95% to 3.00%. This will result in an
after-tax decline in earnings in the fourth quarter of approximately $0.04 per
share from previous expectations. The Company is currently evaluating possible
balance sheet restructuring strategies to lessen the impact that the current
interest rate environment is having on its performance and better position it
for 2004 and its long-term performance goals.
Under the current rate environment, mortgage banking activities have slowed
considerably. This rate environment has also resulted in a higher level of
adjustable rate mortgage applications which will impact fee income as adjustable
rate loans are held in portfolio. Gains on the sale of mortgage loans for the
third quarter of 2003 were $887 thousand and are expected to decline to
approximately $100 thousand for the fourth quarter of 2003.
For the full-year 2003, Unizan projects diluted earnings per share to be in a
range of $1.04 to $1.08 including the one-time charge for the resignation of the
CFO.
Unizan Financial Corp., a $2.8 billion holding company, is a premier financial
services organization headquartered in Canton, Ohio. The Company operates 45
full-service retail financial centers in five metropolitan markets in Ohio --
Canton, Columbus, Dayton, Newark and Zanesville. Through Unizan Financial
Corp.'s subsidiaries, Unizan Bank, National Association; Unizan Financial
Services Group, National Association; Unizan Banc Financial Services, Inc.; and
Unizan Financial Advisors, Inc., the company offers its client base corporate
and retail banking, Internet banking and wealth management products and
services. Additionally, the company operates niche businesses in government
guaranteed loan programs through its business lending centers in Cincinnati,
Cleveland, Columbus and Dayton, Ohio; Louisville, Kentucky; Detroit, Michigan;
Mt. Arlington, New Jersey; and Indianapolis, Indiana; as well as aircraft
lending centers in Columbus; Orlando, Florida; and Sacramento, California. For
more information on Unizan Financial Corp. and its subsidiaries, visit the
company on the Web at http://www.unizan.com/.
FORWARD-LOOKING STATEMENTS
This press release includes forward-looking statements that are subject to
certain risks and uncertainties. Unizan Financial Corp.'s actual results,
performance, or achievements may differ materially from those expressed or
implied in the forward-looking statements. Risk or uncertainties that could
cause or contribute to such material differences include, but are not limited
to, general economic conditions, interest rate environment, competitive
conditions in the financial services industry, changes in law, governmental
policies and regulation, and rapidly changing technology affecting financial
services. Reference is made to Unizan Financial Corp.'s filings with the
Securities and Exchange Commission, including its Annual Report on Form 10-K for
the year ended December 31, 2002, and other periodic filings, for a description
of the foregoing and other factors that could cause actual results to differ
materially from those in the forward-looking statements.
DATASOURCE: Unizan Financial Corp.
CONTACT: Investors, Roger L. Mann, President and Chief Executive
Officer, +1-330-438-1118, or +1-866-235-7203, or , or Media,
Sandy K. Upperman, Vice President, Corporate Communications, +1-330-438-4858,
or , both of Unizan Financial Corp.
Web site: http://www.unizan.com/
Company News On-Call: http://www.prnewswire.com/comp/127633.html