Exhibit 99.1
Willow Financial Bancorp, Inc. Announces Third Quarter Earnings
WAYNE, Pa.—May 7, 2007—Today Willow Financial Bancorp, Inc. (the “Company”) (Nasdaq/Global Select Market: WFBC), the holding company for Willow Financial Bank (the “Bank”), reported net income of $2.0 million for the quarter ended March 31, 2007, or $0.13 per diluted share, compared to $3.9 million or $0.26 per diluted share in the quarter ended March 31, 2006.
On a sequential basis, net income and earnings per share for the quarter ended March 31, 2007 were $501 thousand and $0.03 below the previous quarter ended December 31, 2006. However, the second quarter of fiscal 2007 includes a one-time gain, of $804 thousand ($563 thousand after tax) or $0.05 per diluted share ($0.04 after tax) that resulted from the unwinding of an interest rate corridor.
For the nine months ended March 31, 2007, net income was $7.7 million, or $0.50 per diluted share, compared to $8.7 million or $0.62 per diluted share in the nine months ended March 31, 2006.
Donna M. Coughey, President and CEO of the Company said: “We saw several positive trends in the third quarter, including continued growth of core deposits, continuation of a six month trend in a steady interest margin, strong asset quality and growth in non-interest income from our wealth management operations. In addition, on a sequential basis, our core operating results reflect improvement when you factor out the one-time gain realized in the quarter ended December 31, 2006, on the unwinding of an interest rate corridor. We believe that the business has solidified, and that our improved results in the third quarter represent the start of a new trend.
We have agreements for the sale of our two large non-performing assets with closings expected during the quarter ended June 30, 2007. For each, we have received a significant non-refundable deposit. The sales will not result in any additional loss recorded through a charge to earnings. If these two assets were liquidated, the ratio of non-performing assets to total assets would be reduced to 0.20% from 0.59%.”
Ms. Coughey continued, “Our wealth management business continues to grow. Our investment platform is built with products that serve investors of all classes, from those just getting started to the sophisticated high net worth individual. We have grown assets under management and administration to nearly $775 million. Much of the new business being developed is the result of traction from the FIRST team initiatives and the customer quadrant calling activities. This has had a direct positive impact on our non-interest income, a key initiative in our strategic plan. Non-interest income will also benefit from the acquisition of BeneServ, the Bank’s new employee benefit insurance brokerage subsidiary, which closed on March 30, 2007. The BeneServ acquisition will be immediately accretive to earnings in the quarter ending June 30, 2007.”
Ms. Coughey further added, “BeneServ is a great fit for Willow Financial as we continue to pursue our strategic goals and objectives. It has diversified our revenue stream and opened doors for the cross selling of other bank products and services. Likewise, BeneServ’s robust portfolio of employee benefits products and services will give each of our sales professionals another tool in their cross-selling efforts to our existing clients and prospects. We are already seeing great synergies between our marketing efforts, and are expecting good results from this acquisition and these sales initiatives.”
Ms. Coughey concluded, “The entire Willow Financial Bancorp team is intensely focused on adding shareholder value. We believe that we have the right business model for banking customers in the greater Philadelphia area. We’ve had some challenges this year — the inverted yield curve that has impacted the industry as a whole, credit challenges with two specific borrowers, and unscheduled repayments within the commercial real estate portfolio — but we believe, overall, that the business is on track and we will deliver on the promise of our business model. Our opportunity has never been greater, and our excitement about growing this business is intact. We continue to believe that our stock is undervalued and during the third quarter we
repurchased approximately 65,000 shares, under our previously announced stock repurchase plan.”
Chief Financial Officer, Joe Crowley highlighted the following with respect to the Company’s results at and for the quarter ended March 31, 2007:
· Total assets were $1.53 billion, a decrease of approximately 2.9% from total assets of $1.58 billion at fiscal 2006 year-end. This was driven primarily by a reduction in the investment portfolio, which was offset by a reduction in Federal Home Loan Bank advances.
· Net loans receivable were $1.03 billion, essentially flat on a sequential basis and a decrease of 3.3% from $1.06 billion at fiscal 2006 year-end. This was a result of slower-than-expected closing of loans in the new business pipeline. However, the loan pipeline remained strong at March 31, 2007.
· Total deposits increased 3.9% from fiscal 2006 year-end and 2.0% on a sequential quarter-to-quarter basis. The increases occurred primarily in commercial money market and municipal demand deposit accounts.
· Federal Home Loan Bank borrowings were $195.1 million, down 31.0% from fiscal 2006 year-end and 11.7% on a sequential basis, as the Company continues to de-lever its balance sheet by utilizing proceeds received from the investment portfolio and the deposit growth to repay wholesale borrowings. Federal Home Loan Bank borrowings as a percentage of total assets have been reduced to 12.7% at March 31, 2007, the lowest level in over three years.
· On March 26, 2007, the Company redeemed a trust preferred borrowing approximating $10.3 million. The borrowing carried an annualized cost of approximately 9%.
· Net income for the quarter was $2.0 million or $0.13 per diluted share, down from $3.9 million or $0.26 per diluted share in the third quarter of fiscal 2006, and down by $0.03 on a sequential basis. However, the second quarter of fiscal 2007 included a one-time
gain of approximately $804 thousand, or $0.04 after tax per diluted share, realized on the unwinding of an interest rate corridor.
· The net interest margin computed on a fully tax equivalent was 3.41%, down from 3.75% in last year’s third quarter but up from 3.32% on a sequential quarter-to-quarter basis. Net interest margin expanded on a sequential basis due to growth in core deposits and reduced reliance on lower yielding investment securities and higher costing wholesale borrowings. This is the sixth consecutive month that the net interest margin has stabilized.
· Non-performing assets to total assets were 0.59% at March 31, 2007, compared to 0.77% at the comparable prior year’s quarter-end and down from 0.64% on a sequential basis. Loans delinquent 30 days or more declined to 1.12% of total loans at March 31, 2007, from 1.22% at December 31, 2006.
· Other income was $2.8 million in the quarter, an increase of nearly 35% compared to the prior year quarter. Investment services income increased $88 thousand or 10% sequentially due primarily to increased investment sales through the branch network as well as increased trust fees. Gains on sales of loans increased $98 thousand due to a gain realized on the sale of the guaranteed portion of an SBA loan.
· Non-interest expense for the quarter ended March 31, 2007 totaled $11.1 million, compared to $9.5 million in last year’s third quarter, but flat on a sequential quarter-to-quarter basis. The year over year increase was due to additional staffing and rental expense associated with the new Feasterville branch as well as an additional two months rent for the Company’s headquarters in Wayne, Pennsylvania, for which the Company took occupancy in late February 2006. Additionally, advertising costs increased as a result of the Company’s re-branding. The majority of the re-branding costs have been incurred and as a result, advertising expenses are expected to decline by approximately $200 thousand in the fourth quarter of fiscal 2007 compared to the third fiscal quarter.
The Company will host a conference call on Tuesday, May 8, 2007 at 11:00 a.m. Eastern Time to discuss third quarter fiscal 2007 results, followed by a brief question and answer session. All interested parties are invited to participate in a listen-only mode by accessing a webcast of the
call through the Company’s website. To access the call, please visit the Company’s website at www.wfbonline.com.
A taped replay of the conference call will be available within two hours of the conclusion of the call and will remain available through Wednesday, May 16, 2007. The number to call for the taped replay is 973-341-3080 and the conference PIN is #8346938.
An online archive of the webcast will be available within two hours of the conclusion of the call and will remain available through February 7, 2008.
About Willow Financial Bancorp:
See What WillPower is Worth
Willow Financial Bancorp, Inc. (NASDAQ: WFBC - News), is the holding company for Willow Financial Bank, a community bank in Southeastern Pennsylvania with $1.5 billion in assets. With 29 convenient offices, Willow Financial Bank has a community presence in Bucks, Chester, Montgomery, and Philadelphia Counties - some of the fastest-growing communities in Pennsylvania. The Bank provides a complete line of products and services, including: retail banking, business and commercial banking, cash management, wealth management and investments. We are focused on providing first-class customer service and catering to the distinctive needs of consumers and small business owners, as well as the sophisticated commercial clients and high net-worth individuals. Headquartered in Wayne, Pa., Willow Financial Bank has the team, the resources and the sophisticated products designed to compete with any bank in the region. To see what WillPower is worth, visit www.willowfinancialbank.com or call 1-800-NEW WILLOW.
Forward Looking Statements
The information contained in this press release may contain forward-looking statements (as defined in the Securities Exchange Act of 1934 and the regulations thereunder) which are not historical facts or as to Willow Financial Bancorp, Inc. management’s intentions, plans, beliefs, expectations or opinions. Forward-looking statements may be identified by the use of words such as “believe”, “expect”, “anticipate”, “intend”, “plan”, “estimate”, “could”, “may”, “likely”,
“probably” or “possibly”. These statements include, but are not limited to, statements regarding plans, objectives and expectations with respect to future operations and statements regarding future performance. Such statements are subject to certain risks and uncertainties, many of which are difficult to predict and generally beyond the control of Willow Financial Bancorp and its management, that could cause actual results to differ materially from those expressed in, or implied or projected by, the forward-looking information and statements. Actual results may differ materially from the anticipated results expressed in the forward-looking statements. Factors that may affect the Company’s future operations are discussed in the documents filed by Willow Financial Bancorp with the Securities and Exchange Commission (“SEC”) from time to time, including the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2006. Additional factors that may cause the results referenced in forward-looking statements to differ from actual results include general economic conditions and the interest rate yield curve, changes in deposit flows, changes in credit quality and legislative and regulatory changes, among other things. Copies of these documents may be obtained from Willow Financial Bancorp upon request without charge (except for the exhibits thereto) or can be accessed at the website maintained by the SEC at http://www.sec.gov. Willow Financial Bancorp undertakes no obligation to update these forward-looking statements to reflect events or circumstances that occur after the date on which such statements were made.
WILLOW FINANCIAL BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Dollars in Thousands, Unaudited)
|
| March 31, |
| June 30, |
| ||
|
| 2007 |
| 2006 |
| ||
Assets |
|
|
|
|
| ||
Cash in banks |
| $ | 28,464 |
| $ | 32,930 |
|
Interest-bearing deposits |
| 34,575 |
| 4,289 |
| ||
Total cash and cash equivalents |
| 63,039 |
| 37,219 |
| ||
Investment securities — trading |
| 1,096 |
| 902 |
| ||
Federal Home Loan Bank Stock |
| 13,298 |
| 16,856 |
| ||
Investment securities available for sale |
| 167,206 |
| 196,925 |
| ||
Investment securities held to maturity |
| 93,107 |
| 105,561 |
| ||
Loans held for sale |
| 5,926 |
| 2,635 |
| ||
Loans receivable |
| 1,042,200 |
| 1,081,789 |
| ||
Deferred fees and other discounts |
| (110 | ) | (1,170 | ) | ||
Allowance for loan losses |
| (13,359 | ) | (16,737 | ) | ||
Loans receivable, net |
| 1,028,731 |
| 1,063,882 |
| ||
Accrued interest receivable |
| 6,852 |
| 6,647 |
| ||
Property and equipment, net |
| 11,152 |
| 10,064 |
| ||
Bank owned life insurance |
| 11,814 |
| 11,483 |
| ||
Real estate owned |
| 1,991 |
| 51 |
| ||
Core deposit intangible, net |
| 11,315 |
| 12,975 |
| ||
Goodwill |
| 98,595 |
| 94,072 |
| ||
Other assets |
| 17,840 |
| 17,788 |
| ||
Total Assets |
| $ | 1,531,962 |
| $ | 1,577,060 |
|
|
|
|
|
|
| ||
Liabilities and Stockholders’ Equity |
|
|
|
|
| ||
Liabilities: |
|
|
|
|
| ||
Interest-bearing deposits |
| $ | 898,460 |
| $ | 855,526 |
|
Non-interest bearing deposits |
| 159,576 |
| 162,864 |
| ||
Securities sold under agreements to repurchase |
| 30,000 |
| 20,000 |
| ||
Advance payments by borrowers for taxes and insurance |
| 3,208 |
| 4,776 |
| ||
Federal Home Loan Bank advances |
| 195,073 |
| 282,717 |
| ||
Trust preferred securities |
| 25,694 |
| 36,149 |
| ||
Accrued interest payable |
| 1,480 |
| 2,205 |
| ||
Other liabilities |
| 8,768 |
| 9,425 |
| ||
Total Liabilities |
| 1,322,259 |
| 1,373,662 |
| ||
Total Stockholders’ Equity |
| 209,703 |
| 203,398 |
| ||
Total Liabilities and Stockholders’ Equity |
| $ | 1,531,962 |
| $ | 1,577,060 |
|
WILLOW FINANCIAL BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in Thousands, Except for Per Share Amounts)
|
| Three Months Ended |
| ||||
|
| March 31, |
| ||||
|
| 2007 |
| 2006 |
| ||
INTEREST INCOME: |
|
|
|
|
| ||
Loans |
| $ | 17,291 |
| $ | 17,957 |
|
Investment securities and interest-bearing deposits |
| 4,044 |
| 3,835 |
| ||
Total interest income |
| 21,335 |
| 21,792 |
| ||
INTEREST EXPENSE: |
|
|
|
|
| ||
Deposits |
| 6,861 |
| 4,776 |
| ||
Securities sold under agreements to repurchase |
| 269 |
| 223 |
| ||
Borrowings |
| 2,874 |
| 3,587 |
| ||
Total interest expense |
| 10,004 |
| 8,586 |
| ||
NET INTEREST INCOME |
| 11,330 |
| 13,206 |
| ||
Provision for loan losses |
| — |
| — |
| ||
Net interest income after provision for loan losses |
| 11,330 |
| 13,206 |
| ||
OTHER INCOME: |
|
|
|
|
| ||
Investment services income, net |
| 946 |
| 705 |
| ||
Service charges and fees |
| 1,380 |
| 1,126 |
| ||
Gain (loss) on sale of: |
|
|
|
|
| ||
Loans |
| 192 |
| 77 |
| ||
Available for sale securities |
| 100 |
| 19 |
| ||
Other |
| 179 |
| 151 |
| ||
Total other income |
| 2,797 |
| 2,078 |
| ||
OPERATING EXPENSES: |
|
|
|
|
| ||
Salaries and employee benefits |
| 5,859 |
| 5,039 |
| ||
Occupancy & equipment |
| 2,081 |
| 1,753 |
| ||
Data processing |
| 358 |
| 304 |
| ||
Advertising |
| 557 |
| 264 |
| ||
Deposit insurance premiums |
| 30 |
| 33 |
| ||
Amortization of intangible assets |
| 543 |
| 587 |
| ||
Professional fees |
| 593 |
| 443 |
| ||
Other |
| 1,087 |
| 1,080 |
| ||
Total operating expenses |
| 11,108 |
| 9,503 |
| ||
Income before income taxes |
| 3,019 |
| 5,781 |
| ||
Income tax expense |
| 981 |
| 1,857 |
| ||
NET INCOME |
| $ | 2,038 |
| $ | 3,924 |
|
EARNINGS PER SHARE (a) |
|
|
|
|
| ||
Basic |
| $ | 0.13 |
| $ | 0.26 |
|
Diluted |
| $ | 0.13 |
| $ | 0.26 |
|
WEIGHTED AVERAGE SHARES OUTSTANDING (a) |
|
|
|
|
| ||
Basic |
| 15,146,910 |
| 14,854,509 |
| ||
Diluted |
| 15,352,951 |
| 15,204,826 |
| ||
(a) Earnings per share and weighted average shares outstanding have been adjusted to reflect the 5% stock dividend paid on February 23, 2007.
WILLOW FINANCIAL BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Dollars in Thousands, Unaudited)
|
| For the Three Months Ended |
| ||||||||||||||
|
| March 31, 2007 |
| March 31, 2006 |
| ||||||||||||
|
| Average |
|
|
| Yield/ |
| Average |
|
|
| Yield/ |
| ||||
|
| Balance |
| Interest |
| Rate |
| Balance |
| Interest |
| Rate |
| ||||
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Single family residential |
| $ | 291,444 |
| $ | 4,296 |
| 5.90 | % | $ | 277,522 |
| $ | 4,340 |
| 6.23 | % |
Construction and land |
| 75,718 |
| 1,620 |
| 8.56 | % | 86,672 |
| 1,709 |
| 7.89 | % | ||||
Commercial real estate |
| 283,815 |
| 5,021 |
| 7.08 | % | 321,075 |
| 5,506 |
| 6.86 | % | ||||
Commercial business |
| 57,403 |
| 1,145 |
| 7.98 | % | 64,539 |
| 1,208 |
| 7.48 | % | ||||
Small Business |
| 67,751 |
| 1,188 |
| 7.01 | % | 71,313 |
| 1,383 |
| 7.76 | % | ||||
Consumer |
| 269,949 |
| 4,152 |
| 6.15 | % | 259,641 |
| 3,900 |
| 6.01 | % | ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Total loans |
| $ | 1,046,080 |
| $ | 17,422 |
| 6.66 | % | $ | 1,081,762 |
| $ | 18,046 |
| 6.67 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Investment securities |
| 306,678 |
| 4,102 |
| 5.35 | % | 341,597 |
| 3,899 |
| 4.57 | % | ||||
Total interest-earning assets |
| 1,352,758 |
| 21,524 |
| 6.36 | % | 1,423,359 |
| 21,945 |
| 6.17 | % | ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Non-interest earning assets |
| 165,178 |
|
|
|
|
| 164,013 |
|
|
|
|
| ||||
Total assets |
| $ | 1,517,936 |
|
|
|
|
| $ | 1,587,372 |
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Liabilities and Stockholders’ Equity |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
DDA & NOW |
| $ | 255,905 |
| $ | 81 |
| 0.13 | % | $ | 278,705 |
| $ | 77 |
| 0.11 | % |
Savings |
| 87,709 |
| 80 |
| 0.37 | % | 109,178 |
| 99 |
| 0.37 | % | ||||
MMDA |
| 347,744 |
| 3,216 |
| 3.75 | % | 253,393 |
| 1,848 |
| 2.96 | % | ||||
Certificates |
| 305,790 |
| 3,169 |
| 4.20 | % | 345,962 |
| 2,752 |
| 3.23 | % | ||||
Repo Sweeps |
| 26,698 |
| 315 |
| 4.79 | % | 23,026 |
| 223 |
| 3.93 | % | ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Total deposits |
| 1,023,846 |
| 6,861 |
| 2.72 | % | 1,010,264 |
| 4,999 |
| 2.01 | % | ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
FHLB borrowings |
| 218,312 |
| 2,247 |
| 4.17 | % | 338,097 |
| 3,383 |
| 4.06 | % | ||||
Repurchase agreements |
| 21,333 |
| 269 |
| 5.11 | % | — |
| — |
|
|
| ||||
Trust preferred securities |
| 34,875 |
| 627 |
| 7.29 | % | 10,770 |
| 204 |
| 7.68 | % | ||||
|
| 274,520 |
| 3,143 |
| 4.64 | % | 348,850 |
| 3,587 |
| 4.17 | % | ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Total interest-bearing liabilities |
| 1,298,366 |
| 10,004 |
| 3.12 | % | 1,359,131 |
| 8,586 |
| 2.56 | % | ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Non-interest-bearing liabilities |
| 10,003 |
|
|
|
|
| 25,670 |
|
|
|
|
| ||||
Stockholders’ equity |
| 209,567 |
|
|
|
|
| 202,571 |
|
|
|
|
| ||||
Total liabilities and stockholders’ equity |
| $ | 1,517,936 |
|
|
|
|
| $ | 1,587,372 |
|
|
|
|
| ||
Net interest income/interest rate spread |
|
|
| $ | 11,520 |
| 3.24 | % |
|
| $ | 13,359 |
| 3.61 | % | ||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Net interest margin |
|
|
|
|
| 3.41 | % |
|
|
|
| 3.75 | % | ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Ration of average interest-earning assets to average interest-bearing liabilities |
|
|
|
|
| 104 | % |
|
|
|
| 105 | % | ||||
Tax equivalent adjustments |
|
|
| $ | 189 |
|
|
|
|
| $ | 153 |
|
|
| ||
| Three-months Ended |
| |||
|
| 2007 |
| 2006 |
|
Average interest rate spread |
| 3.24% |
| 3.61% |
|
Net interest margin — tax equivalent |
| 3.41% |
| 3.75% |
|
Ratio of average interest-earning assets to average interest-bearing liabilities |
| 1.04 | x | 1.05 | x |
Non-performing assets to total assets |
| 0.59% |
| 0.77% |
|
Return on average equity |
| 3.89% |
| 7.75% |
|
Number of full-service offices at end of period |
| 29 |
| 28 |
|
|
|
|
|
|
|
This press release contains financial information determined by methods other than in accordance with U.S. generally accepted accounting principles (“GAAP”). The Company’s management uses these non-GAAP measures in its analysis of the Company’s performance. These non-GAAP measures consist of adjusting the yield on tax-exempt loans and securities to a tax-equivalent basis. Management believes that presentation of financial measures on a tax-equivalent basis provide useful supplemental information that is essential to a proper understanding of the operating results of the Company’s core business. These disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures, which may be presented by other companies.
WILLOW FINANCIAL BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in Thousands, Except for Per Share Amounts)
|
| Nine Months Ended |
| ||||
|
| March 31, |
| ||||
|
| 2007 |
| 2006 |
| ||
INTEREST INCOME: |
|
|
|
|
| ||
Loans |
| $ | 52,224 |
| $ | 47,201 |
|
Investment securities and interest-bearing deposits |
| 12,560 |
| 11,768 |
| ||
Total interest income |
| 64,784 |
| 58,969 |
| ||
INTEREST EXPENSE: |
|
|
|
|
| ||
Deposits |
| 20,052 |
| 13,041 |
| ||
Securities sold under agreements to repurchase |
| 777 |
|
|
| ||
Borrowings |
| 8,958 |
| 9,871 |
| ||
Total interest expense |
| 29,787 |
| 22,912 |
| ||
NET INTEREST INCOME |
| 34,997 |
| 36,057 |
| ||
Provision for loan losses |
| (100 | ) | 720 |
| ||
Net interest income after provision for loan losses |
| 35,097 |
| 35,337 |
| ||
OTHER INCOME: |
|
|
|
|
| ||
Investment services income, net |
| 2,552 |
| 1,735 |
| ||
Service charges and fees |
| 4,134 |
| 3,254 |
| ||
Gain (loss) on sale of: |
|
|
|
|
| ||
Loans |
| 439 |
| 331 |
| ||
Available for sale securities |
| 213 |
| (957 | ) | ||
Gain on termination of interest rate corridor |
| 804 |
| — |
| ||
Other |
| 546 |
| 404 |
| ||
Total other income |
| 8,688 |
| 4,767 |
| ||
OPERATING EXPENSES: |
|
|
|
|
| ||
Salaries and employee benefits |
| 17,440 |
| 15,009 |
| ||
Occupancy & equipment |
| 5,969 |
| 4,034 |
| ||
Data processing |
| 1,075 |
| 982 |
| ||
Advertising |
| 1,524 |
| 775 |
| ||
Deposit insurance premiums |
| 90 |
| 93 |
| ||
Amortization of intangible assets |
| 1,660 |
| 1,352 |
| ||
Professional fees |
| 1,675 |
| 1,606 |
| ||
Other |
| 3,122 |
| 3,261 |
| ||
Total operating expenses |
| 32,555 |
| 27,112 |
| ||
Income before income taxes |
| 11,230 |
| 12,992 |
| ||
Income tax expense |
| 3,540 |
| 4,265 |
| ||
NET INCOME |
| $ | 7,690 |
| $ | 8,727 |
|
EARNINGS PER SHARE (a) |
|
|
|
|
| ||
Basic |
| $ | 0.51 |
| $ | 0.64 |
|
Diluted |
| $ | 0.50 |
| $ | 0.62 |
|
WEIGHTED AVERAGE SHARES OUTSTANDING (a) |
|
|
|
|
| ||
Basic |
| 15,089,953 |
| 13,610,544 |
| ||
Diluted |
| 15,346,771 |
| 13,958,166 |
| ||
(a) Earnings per share and weighted average shares outstanding have been adjusted to reflect the 5% stock dividend paid on February 23, 2007.
WILLOW FINANCIAL BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Dollars in Thousands, Unaudited)
|
| For the Nine Months Ended |
| ||||||||||||||
|
| March 31, 2007 |
| March 31, 2006 |
| ||||||||||||
|
| Average |
|
|
| Yield/ |
| Average |
|
|
| Yield/ |
| ||||
|
| Balance |
| Interest |
| Rate |
| Balance |
| Interest |
| Rate |
| ||||
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Single family residential |
| $ | 294,064 |
| $ | 13,073 |
| 5.84 | % | $ | 268,591 |
| $ | 12,345 |
| 6.04 | % |
Construction and land |
| 75,128 |
| 4,914 |
| 8.59 | % | 92,562 |
| 5,230 |
| 7.42 | % | ||||
Commercial real estate |
| 285,873 |
| 14,874 |
| 6.84 | % | 277,701 |
| 14,148 |
| 6.69 | % | ||||
Commercial business |
| 60,306 |
| 3,590 |
| 7.82 | % | 58,930 |
| 3,232 |
| 7.21 | % | ||||
Small Business |
| 67,469 |
| 3,565 |
| 6.94 | % | 44,879 |
| 2,446 |
| 7.16 | % | ||||
Consumer |
| 268,805 |
| 12,587 |
| 6.15 | % | 223,972 |
| 10,020 |
| 5.88 | % | ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Total loans |
| $ | 1,051,645 |
| $ | 52,602 |
| 6.57 | % | $ | 966,635 |
| $ | 47,422 |
| 6.45 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Investment securities |
| 320,730 |
| 12,764 |
| 5.23 | % | 351,654 |
| 12,272 |
| 4.57 | % | ||||
Total interest-earning assets |
| 1,372,375 |
| 65,366 |
| 6.26 | % | 1,318,289 |
| 59,694 |
| 5.97 | % | ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Non-interest earning assets |
| 163,165 |
|
|
|
|
| 137,714 |
|
|
|
|
| ||||
Total assets |
| $ | 1,535,540 |
|
|
|
|
| $ | 1,456,003 |
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Liabilities and Stockholders’ Equity |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
DDA & NOW |
| $ | 261,169 |
| $ | 218 |
| 0.11 | % | $ | 312,856 |
| $ | 1,880 |
| 0.80 | % |
Savings |
| 92,193 |
| 257 |
| 0.37 | % | 103,303 |
| 319 |
| 0.41 | % | ||||
MMDA |
| 337,232 |
| 9,655 |
| 3.81 | % | 171,206 |
| 3,107 |
| 2.42 | % | ||||
Certificates |
| 301,777 |
| 8,769 |
| 3.87 | % | 323,859 |
| 7,208 |
| 2.96 | % | ||||
Repo Sweeps |
| 32,058 |
| 1,153 |
| 4.79 | % | 19,261 |
| 527 |
| 3.64 | % | ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Total deposits |
| 1,024,429 |
| 20,052 |
| 2.61 | % | 930,485 |
| 13,041 |
| 1.87 | % | ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
FHLB borrowings |
| 236,690 |
| 7,176 |
| 4.04 | % | 314,741 |
| 9,414 |
| 3.98 | % | ||||
Repurchase agreements |
| 20,438 |
| 778 |
| 5.07 | % | — |
| — |
| - |
| ||||
Trust preferred securities |
| 35,743 |
| 1,780 |
| 6.63 | % | 9,318 |
| 457 |
| 6.53 | % | ||||
|
| 292,871 |
| 9,734 |
| 4.43 | % | 324,059 |
| 9,871 |
| 4.06 | % | ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Total interest-bearing liabilities |
| 1,317,300 |
| 29,786 |
| 3.01 | % | 1,254,587 |
| 22,912 |
| 2.43 | % | ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Non-interest-bearing liabilities |
| 10,006 |
|
|
|
|
| 21,332 |
|
|
|
|
| ||||
Stockholders’ equity |
| 208,234 |
|
|
|
|
| 180,127 |
|
|
|
|
| ||||
Total liabilities and stockholders’ equity |
| $ | 1,535,540 |
|
|
|
|
| $ | 1,456,003 |
|
|
|
|
| ||
Net interest income/interest rate spread |
|
|
| $ | 35,580 |
| 3.25 | % |
|
| $ | 36,782 |
| 3.52 | % | ||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Net interest margin |
|
|
|
|
| 3.41 | % |
|
|
|
| 3.67 | % | ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Ration of average interest-earning assets to average interest-bearing liabilities |
|
|
|
|
| 104 | % |
|
|
|
| 105 | % | ||||
Tax equivalent adjustments |
|
|
| $ | 581 |
|
|
|
|
| $ | 707 |
|
|
| ||
| Nine-months Ended |
| |||
|
| March 31, |
| ||
|
| 2007 |
| 2006 |
|
Average interest rate spread |
| 3.25% |
| 3.52% |
|
Net interest margin — tax equivalent |
| 3.41% |
| 3.66% |
|
Ratio of average interest-earning assets to average interest-bearing liabilities |
| 1.04 | x | 1.05 | x |
Non-performing assets to total assets |
| 0.59% |
| 0.77% |
|
Return on average equity |
| 4.92% |
| 6.46% |
|
Number of full-service offices at end of period |
| 29 |
| 28 |
|
This press release contains financial information determined by methods other than in accordance with U.S. generally accepted accounting principles (“GAAP”). The Company’s management uses these non-GAAP measures in its analysis of the Company’s performance. These non-GAAP measures consist of adjusting the yield on tax-exempt loans and securities to a tax-equivalent basis. Management believes that presentation of financial measures on a tax-equivalent basis provide useful supplemental information that is essential to a proper understanding of the operating results of the Company’s core business. These disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures, which may be presented by other companies.
|
|
|
Contact: |
| Willow Financial Bancorp, Inc. |
|
| Donna M. Coughey, CEO |
|
| Joseph T. Crowley, CFO |
|
| Telephone: 610-995-1700 |