Waypoint Financial (NASDAQ:WYPT)
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Waypoint Financial Announces Balance Sheet Restructuring
HARRISBURG, Pa., Jan. 7 /PRNewswire-FirstCall/ -- Waypoint Financial Corp.
(NASDAQ:WYPT) today announced it will implement a balance sheet restructuring
program which will include sales of securities in Waypoint's securities
portfolio totaling $1.1 billion and the early retirement of $1.0 billion in
long-term debt and other wholesale borrowings. Waypoint expects that these
actions will result in a loss of approximately $38.7 million after taxes.
"We've taken these steps to strengthen our balance sheet and improve earnings
potential, leaving us well positioned for expected market conditions as we
finalize our merger with Sovereign Bancorp," said Waypoint Financial CEO David
E. Zuern. "We look forward to becoming part of Sovereign, and we continue to
work together to assure a seamless transition for our customers, employees, and
communities we serve."
"Restructuring Waypoint's balance sheet helps us meet financial objectives
related to this merger," said Sovereign Bancorp Chairman and CEO Jay Sidhu.
"This pre-merger transaction does not change Sovereign's 2005 capital or
earnings goals, or our ability to achieve these goals."
"As we approach the closing date, we remain very excited about how the merger
with Waypoint enhances Sovereign's core franchise," said Sidhu. Following the
merger with Waypoint, Sovereign will become Pennsylvania's fifth largest bank
in market share, and the second largest bank headquartered in Pennsylvania.
On March 9, 2004, Waypoint and Sovereign announced that they had reached a
definitive agreement for Sovereign to acquire Waypoint in a transaction valued
at approximately $980 million. The Sovereign/Waypoint merger has received all
required approvals and is scheduled to be completed on January 21, 2005.
Waypoint Financial Corp. is a $5.4 billion bank holding company whose primary
operating subsidiary is Waypoint Bank. Headquartered in Harrisburg,
Pennsylvania, Waypoint Bank operates 58 branches in Dauphin, York, Lancaster,
Cumberland, Franklin, Lebanon, Adams, and Centre counties in Pennsylvania and 8
branches in Baltimore, Harford, Frederick and Washington counties in Maryland.
Waypoint offers a full range of financial services including banking for
retail, commercial and small business customers, mortgages, trust and
investment, brokerage, and insurance services to more than 125,000 household
and business customers.
Sovereign Bancorp, Inc., ("Sovereign") (NYSE:SOV), is the parent company of
Sovereign Bank, pro forma a $60 billion financial institution with more than
650 community banking offices, over 1,000 ATMs and approximately 9,500 team
members in Connecticut, Maryland, Massachusetts, New Hampshire, New Jersey, New
York, Pennsylvania and Rhode Island. In addition to full-service retail
banking, Sovereign offers a broad array of financial services and products
including business and corporate banking, cash management, capital markets,
trust and wealth management and insurance. Pro forma for pending acquisitions,
Sovereign is the 18th largest banking institution in the United States. For
more information on Sovereign Bank, visit http://www.sovereignbank.com/ or call
1-877-SOV-BANK.
Note on Forward-Looking Statements
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of
1995: Statements in this press release regarding Waypoint Financial which are
not historical facts are "forward-looking statements" that involve risks and
uncertainties. Such forward-looking statements may be identified by the use of
words such as "believe," "expect," "anticipate," "should," "planned,"
"estimated" and "potential." Examples of forward-looking statements include,
but are not limited to, the anticipated sale price of securities, estimated
tax-losses and the effect of the described transactions on future performance.
Forward-looking statements are subject to risks and uncertainties which could
cause actual results to differ materially from those currently anticipated due
to a number of factors, including, but not limited to, interest rates and other
market conditions and other factors described in the Company's filings with the
Securities and Exchange Commission.
DATASOURCE: Waypoint Financial Corp.
CONTACT: James H. Moss, Chief Financial Officer of Waypoint Financial
Corp., +1-717-909-2247
Web site: http://www.sovereignbank.com/
Web site: http://www.waypointbank.com/