Exhibit 99.1
For Release: IMMEDIATELY
Contact: | Patrick M. Ryan, President & CEO | (609) 631-6177 | ||
Stephen F. Carman, VP / Treasurer | (609) 631-6222 | |||
Leonardo G. Zangani / Financial PR | (908) 788-9660 |
YNB REPORTS RECORD SECOND QUARTER EARNINGS
Hamilton, N.J. – July 20, 2004- Yardville National Bancorp (NASDAQ:YANB), today announced double digit percentage increases in most performance indicators, led by a 24.2 percent increase in its second quarter 2004 net income over the same period in 2003. For the quarter ended June 30, 2004, YNB’s net income was $4.5 million compared with $3.6 million earned in the second quarter of last year. Earnings per share also increased to $0.41 per diluted share, up 20.6 percent over the $0.34 per diluted share reported in the second quarter of 2003.
For the six months ended June 30, 2004, YNB’s net income increased 20.0 percent to $8.3 million from the $6.9 million earned in the same period a year ago. Diluted earnings per share increased 16.7 percent to $0.77 from the $0.66 reported in the prior year’s first half. Increased net interest income and a higher net interest margin resulted in the notable improvement in YNB’s financial performance from the comparable periods, despite an increase in non-interest expense and a higher provision for loan losses.
Total loans showed an impressive increase in the first half of 2004. Strong growth in commercial loans, primarily commercial real estate, resulted in a 22.3 percent rise in total loans to $1.63 billion from $1.33 billion at June 30, 2003. YNB has continued to focus on improving overall loan quality. Nonperforming assets decreased from the first quarter of 2004, dropping to $11.8 million at June 30, 2004 from $13.3 million at March 31, 2004, while nonperforming assets as a percent of total assets decreased to 0.45 percent at June 30, 2004, compared to 0.52 percent at March 31, 2004. At June 30, 2004, YNB’s allowance for loan losses was $18.5 million, or 1.14 percent of total loans, covering 156.8 percent of total nonperforming loans. In the first half of 2004, YNB provided $4.4 million for possible loan losses, primarily due to an increased level of net loan charge offs and the strong loan growth experienced.
“Commercial loan growth in the first six months of 2004 was significant,” said YNB Chief Executive Officer and President Patrick M. Ryan. “Our larger core deposit base, led by our very successful Simply Better CheckingSM product, enabled us to support our lending growth at a lower cost. This, in turn, should further improve our net interest margin as we go forward, an essential element for YNB’s future success,” Mr. Ryan noted.
For the six months ended June 30, 2004, YNB’s net interest margin continued to advance to 2.72 percent, a major improvement over the margin of 2.34 percent a year ago. The combination of continued commercial loan growth and higher levels of lower cost deposits is expected to push the net interest margin higher in the second half of 2004.
YNB also experienced solid deposit growth, as deposits rose 19.9 percent to $1.69 billion at June 30, 2004 from $1.41 billion at the same date in 2003. YNB’s aggressive consumer deposit campaign made a major contribution to this growth, as YNB’s popular Simply Better Checking product brought in $83.5 million in account balances in the first half of 2004.
New branch offices also have a role to play in the company’s profitability. YNB already has filed an application for a new branch at Pennington Pointe West, in Northern Mercer County. Subject to regulatory approval, it is anticipated that the branch will be ready to open in the first quarter of 2005. Plans are also on the drawing board for 2005 for branches in West Windsor, New Jersey in Mercer County; Readington, New Jersey in Hunterdon County; and in Morrisville, Pennsylvania in Bucks County.
“By following our retail strategy and bringing our products and services to a larger audience, we can further enhance shareholder value,” Mr. Ryan concluded.
YNB’s Executive Vice President and Chief Financial Officer provided further guidance on the company’s second half prospects. “The ongoing growth of net interest income and our net interest margin are critical in meeting our financial goals for 2004,” Stephen F. Carman noted. “Based on current or projected higher interest rates in the second half of the year, we are well-positioned, should credit quality continue to improve, to achieve net interest margin and net income goals for 2004,” he concluded.
YNB’s capital structure to support future growth remains solid, as the company recently completed the private sale of $15.0 million in floating rate trust preferred securities. At June 30, 2004, YNB’s Tier 1 and risk-based capital ratios exceeded those required by regulatory guidelines to be considered well-capitalized. Shareholders were also well-rewarded, as YNB paid a cash dividend for the 42nd consecutive quarter.
As of June 30, 2004, YNB had $2.66 billion in assets, with twenty-two branches serving individuals and businesses in Mercer, Hunterdon, Somerset, Burlington and Middlesex Counties in New Jersey, and Bucks County, Pennsylvania. Located in the corridor between New York City and Philadelphia, YNB offers a broad range of lending, deposit and other financial products and services.
Note regarding forward-looking statements
This press release and other statements made from time to time by our management contain express and implied statements relating to our future financial condition, results of operations, plans, objectives, performance, and business, which are considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These may include statements that relate to, among other things, profitability, liquidity, loan loss reserve adequacy, plans for growth, interest rate sensitivity, market risk, regulatory compliance, and financial and other goals. Actual results may differ materially from those expected or implied as a result of certain risks and uncertainties, including, but not limited to, the results of our efforts to implement our retail strategy, adverse changes in our loan portfolio and the resulting credit risk-related losses and expenses, interest rate fluctuations and other economic conditions, our ability to attract core deposits, continued relationships with major customers, competition in product offerings and product pricing, adverse changes in the economy that could increase credit-related losses and expenses, compliance with laws and regulatory requirements of federal and state agencies, other risks and uncertainties detailed from time to time in our filings with the SEC, as well as other risks and uncertainties detailed from time to time in statements made by our management.
Yardville National Bancorp
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
(in thousands, except per share amounts) | 2004 | 2003 | 2004 | 2003 | ||||||||||||
Stock Information: | ||||||||||||||||
Weighted average shares outstanding: | ||||||||||||||||
Basic | 10,444 | 10,395 | 10,435 | 10,396 | ||||||||||||
Diluted | 10,803 | 10,614 | 10,799 | 10,590 | ||||||||||||
Shares outstanding end of period | 10,478 | 10,416 | ||||||||||||||
Earnings per share: | ||||||||||||||||
Basic | $ | 0.43 | $ | 0.35 | $ | 0.80 | $ | 0.67 | ||||||||
Diluted | 0.41 | 0.34 | 0.77 | 0.66 | ||||||||||||
Dividends paid per share | 0.115 | 0.115 | 0.23 | 0.23 | ||||||||||||
Book value per share | 13.48 | 14.28 | ||||||||||||||
Tangible book value per share | 13.29 | 14.28 | ||||||||||||||
Closing price per share | 24.95 | 19.52 | ||||||||||||||
Closing price to tangible book value | 187.74 | % | 136.69 | % | ||||||||||||
Key Ratios: | ||||||||||||||||
Return on average assets | 0.68 | % | 0.62 | % | 0.65 | % | 0.61 | % | ||||||||
Return on average stockholders’ equity | 12.48 | 9.73 | 11.46 | 9.46 | ||||||||||||
Net interest margin (tax equivalent) | 2.76 | 2.37 | 2.72 | 2.34 | ||||||||||||
Equity-to-assets at period end | 5.30 | 6.30 | ||||||||||||||
Tier 1 leverage ratio (1) | 7.83 | 7.75 | ||||||||||||||
Asset Quality Data: | ||||||||||||||||
Net loan charge-offs | $ | 1,593 | $ | 303 | $ | 3,176 | $ | 1,163 | ||||||||
Nonperforming assets as a percentage of total assets | 0.45 | % | 0.38 | % | ||||||||||||
Allowance for loan losses at period end as a percent of: | ||||||||||||||||
Total loans | 1.14 | 1.31 | ||||||||||||||
Nonperforming loans | 156.81 | 238.59 | ||||||||||||||
Nonperforming assets at period end: | ||||||||||||||||
Nonperforming loans | $ | 11,826 | $ | 7,338 | ||||||||||||
Other real estate | — | 1,651 | ||||||||||||||
Total nonperforming assets | $ | 11,826 | $ | 8,989 | ||||||||||||
(1) | Tier 1 leverage ratio is Tier 1 capital to adjusted average assets |
Yardville National Bancorp and Subsidiaries
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
(in thousands, except per share amounts) | 2004 | 2003 | 2004 | 2003 | ||||||||||||
INTEREST INCOME: | ||||||||||||||||
Interest and fees on loans | $ | 24,149 | $ | 20,910 | $ | 47,248 | $ | 40,964 | ||||||||
Interest on deposits with banks | 59 | 17 | 110 | 24 | ||||||||||||
Interest on securities available for sale | 8,631 | 8,218 | 16,796 | 17,051 | ||||||||||||
Interest on investment securities: | ||||||||||||||||
Taxable | 32 | 39 | 75 | 97 | ||||||||||||
Exempt from Federal income tax | 786 | 698 | 1,564 | 1,329 | ||||||||||||
Interest on Federal funds sold | 44 | 165 | 126 | 376 | ||||||||||||
Total Interest Income | 33,701 | 30,047 | 65,919 | 59,841 | ||||||||||||
INTEREST EXPENSE: | ||||||||||||||||
Interest on savings account deposits | 2,984 | 2,829 | 5,552 | 5,469 | ||||||||||||
Interest on certificates of deposit of $100,000 or more | 983 | 1,039 | 1,957 | 2,097 | ||||||||||||
Interest on other time deposits | 3,047 | 3,738 | 6,293 | 7,591 | ||||||||||||
Interest on borrowed funds | 8,879 | 8,897 | 17,753 | 17,931 | ||||||||||||
Interest on subordinated debentures | 840 | 712 | 1,650 | 1,592 | ||||||||||||
Total Interest Expense | 16,733 | 17,215 | 33,205 | 34,680 | ||||||||||||
Net Interest Income | 16,968 | 12,832 | 32,714 | 25,161 | ||||||||||||
Less provision for loan losses | 1,975 | 1,250 | 4,425 | 1,850 | ||||||||||||
Net Interest Income After Provision for Loan Losses | 14,993 | 11,582 | 28,289 | 23,311 | ||||||||||||
NON-INTEREST INCOME: | ||||||||||||||||
Service charges on deposit accounts | 787 | 572 | 1,650 | 1,119 | ||||||||||||
Securities gains, net | — | 539 | 586 | 690 | ||||||||||||
Income on bank owned life insurance | 491 | 522 | 977 | 1,031 | ||||||||||||
Other non-interest income | 438 | 905 | 877 | 1,270 | ||||||||||||
Total Non-Interest Income | 1,716 | 2,538 | 4,090 | 4,110 | ||||||||||||
NON-INTEREST EXPENSE: | ||||||||||||||||
Salaries and employee benefits | 5,643 | 5,227 | 11,475 | 10,244 | ||||||||||||
Occupancy expense, net | 1,077 | 935 | 2,167 | 1,961 | ||||||||||||
Equipment expense | 816 | 737 | 1,610 | 1,427 | ||||||||||||
Other non-interest expense | 3,047 | 2,267 | 5,618 | 4,181 | ||||||||||||
Total Non-Interest Expense | 10,583 | 9,166 | 20,870 | 17,813 | ||||||||||||
Income before income tax expense | 6,126 | 4,954 | 11,509 | 9,608 | ||||||||||||
Income tax expense | 1,664 | 1,362 | 3,169 | 2,660 | ||||||||||||
Net Income | $ | 4,462 | $ | 3,592 | $ | 8,340 | $ | 6,948 | ||||||||
EARNINGS PER SHARE: | ||||||||||||||||
Basic | $ | 0.43 | $ | 0.35 | $ | 0.80 | $ | 0.67 | ||||||||
Diluted | 0.41 | 0.34 | 0.77 | 0.66 | ||||||||||||
Weighted average shares outstanding: | ||||||||||||||||
Basic | 10,444 | 10,395 | 10,435 | 10,396 | ||||||||||||
Diluted | 10,803 | 10,614 | 10,799 | 10,590 | ||||||||||||
Yardville National Bancorp and Subsidiaries
June 30, | Dec. 31, | |||||||||||
(in thousands) | 2004 | 2003 | 2003 | |||||||||
Assets: | ||||||||||||
Cash and due from banks | $ | 32,629 | $ | 30,781 | $ | 25,785 | ||||||
Federal funds sold | 20,845 | 31,125 | 7,370 | |||||||||
Cash and Cash Equivalents | 53,474 | 61,906 | 33,155 | |||||||||
Interest bearing deposits with banks | 14,798 | 25,782 | 20,552 | |||||||||
Securities available for sale | 817,406 | 807,692 | 798,007 | |||||||||
Investment securities | 69,876 | 63,796 | 68,686 | |||||||||
Loans | 1,628,576 | 1,332,007 | 1,443,355 | |||||||||
Less: Allowance for loan losses | (18,544 | ) | (17,508 | ) | (17,295 | ) | ||||||
Loans, net | 1,610,032 | 1,314,499 | 1,426,060 | |||||||||
Bank premises and equipment, net | 10,898 | 11,961 | 12,307 | |||||||||
Other real estate | — | 1,651 | — | |||||||||
Bank owned life insurance | 43,768 | 41,843 | 42,816 | |||||||||
Other assets | 37,152 | 24,951 | 29,610 | |||||||||
Total Assets | $ | 2,657,404 | $ | 2,354,081 | $ | 2,431,193 | ||||||
Liabilities and Stockholders’ Equity: | ||||||||||||
Deposits | ||||||||||||
Non-interest bearing | $ | 199,485 | $ | 144,251 | $ | 163,812 | ||||||
Interest bearing | 1,493,903 | 1,268,001 | 1,319,997 | |||||||||
Total Deposits | 1,693,388 | 1,412,252 | 1,483,809 | |||||||||
Borrowed funds | ||||||||||||
Securities sold under agreements to repurchase | 10,000 | 10,000 | 10,000 | |||||||||
Federal Home Loan Bank advances | 726,000 | 726,000 | 726,000 | |||||||||
Obligation for Employee Stock Ownership Plan (ESOP) | 566 | 955 | 755 | |||||||||
Other | 369 | 1,033 | 1,325 | |||||||||
Total Borrowed Funds | 736,935 | 737,988 | 738,080 | |||||||||
Subordinated debentures | 62,892 | 37,118 | 47,428 | |||||||||
Other liabilities | 23,247 | 18,515 | 18,319 | |||||||||
Total Liabilities | $ | 2,516,462 | $ | 2,205,873 | $ | 2,287,636 | ||||||
Stockholders’ equity: | ||||||||||||
Common stock: no par value | 90,831 | 89,550 | 90,079 | |||||||||
Surplus | 2,205 | 2,205 | 2,205 | |||||||||
Undivided profits | 62,088 | 55,189 | 56,152 | |||||||||
Treasury stock, at cost | (3,160 | ) | (3,154 | ) | (3,160 | ) | ||||||
Unallocated ESOP shares | (566 | ) | (955 | ) | (755 | ) | ||||||
Accumulated other comprehensive (loss) income | (10,456 | ) | 5,373 | (964 | ) | |||||||
Total Stockholders’ Equity | 140,942 | 148,208 | 143,557 | |||||||||
Total Liabilities and Stockholders’ Equity | $ | 2,657,404 | $ | 2,354,081 | $ | 2,431,193 | ||||||
Financial Summary
Average Balances, Yields and Costs
(Unaudited)
Three Months Ended | Three Months Ended | |||||||||||||||||||||||
June 30, 2004 | June 30, 2003 | |||||||||||||||||||||||
Average | Average | |||||||||||||||||||||||
Average | Yield / | Average | Yield / | |||||||||||||||||||||
(in thousands) | Balance | Interest | Cost | Balance | Interest | Cost | ||||||||||||||||||
INTEREST EARNING ASSETS: | ||||||||||||||||||||||||
Interest bearing deposits with banks | $ | 25,230 | $ | 59 | 0.94 | % | $ | 5,440 | $ | 17 | 1.25 | % | ||||||||||||
Federal funds sold | 18,146 | 44 | 0.97 | 56,975 | 165 | 1.16 | ||||||||||||||||||
Securities | 879,623 | 9,449 | 4.30 | 883,593 | 8,955 | 4.05 | ||||||||||||||||||
Loans (1) | 1,594,495 | 24,149 | 6.06 | 1,278,949 | 20,910 | 6.54 | ||||||||||||||||||
Total interest earning assets | $ | 2,517,494 | $ | 33,701 | 5.35 | % | $ | 2,224,957 | $ | 30,047 | 5.40 | % | ||||||||||||
NON-INTEREST EARNING ASSETS: | ||||||||||||||||||||||||
Cash and due from banks | $ | 28,847 | $ | 24,990 | ||||||||||||||||||||
Allowance for loan losses | (18,488 | ) | (16,871 | ) | ||||||||||||||||||||
Premises and equipment, net | 11,244 | 12,189 | ||||||||||||||||||||||
Other assets | 78,071 | 65,421 | ||||||||||||||||||||||
Total non-interest earning assets | 99,674 | 85,729 | ||||||||||||||||||||||
Total assets | $ | 2,617,168 | $ | 2,310,686 | ||||||||||||||||||||
INTEREST BEARING LIABILITIES: | �� | |||||||||||||||||||||||
Deposits: | ||||||||||||||||||||||||
Savings, money markets, and interest bearing demand | $ | 870,158 | $ | 2,984 | 1.37 | % | $ | 635,619 | $ | 2,829 | 1.78 | % | ||||||||||||
Certificates of deposit of $100,000 or more | 157,867 | 983 | 2.49 | 139,178 | 1,039 | 2.99 | ||||||||||||||||||
Other time deposits | 453,126 | 3,047 | 2.69 | 463,099 | 3,738 | 3.23 | ||||||||||||||||||
Total interest bearing deposits | 1,481,151 | 7,014 | 1.89 | 1,237,896 | 7,606 | 2.46 | ||||||||||||||||||
Borrowed funds | 737,275 | 8,879 | 4.82 | 739,026 | 8,897 | 4.82 | ||||||||||||||||||
Subordinated debentures | 49,662 | 840 | 6.77 | 37,118 | 712 | 7.67 | ||||||||||||||||||
Total interest bearing liabilities | $ | 2,268,088 | $ | 16,733 | 2.95 | % | $ | 2,014,040 | $ | 17,215 | 3.42 | % | ||||||||||||
NON-INTEREST BEARING LIABILITIES: | ||||||||||||||||||||||||
Demand deposits | $ | 182,637 | $ | 131,603 | ||||||||||||||||||||
Other liabilities | 23,387 | 17,377 | ||||||||||||||||||||||
Stockholders’ equity | 143,056 | 147,666 | ||||||||||||||||||||||
Total non-interest bearing liabilities and stockholders’ equity | $ | 349,080 | $ | 296,646 | ||||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 2,617,168 | $ | 2,310,686 | ||||||||||||||||||||
Interest rate spread (2) | 2.40 | % | 1.98 | % | ||||||||||||||||||||
Net interest income and margin (3) | $ | 16,968 | 2.70 | % | $ | 12,832 | 2.31 | % | ||||||||||||||||
Net interest income and margin (tax equivalent basis)(4) | $ | 17,360 | 2.76 | % | $ | 13,196 | 2.37 | % | ||||||||||||||||
(1) | Loan origination fees are considered an adjustment to interest income. For the purpose of calculating loan yields, average loan balances include nonaccrual loans with no related interest income. |
(2) | The interest rate spread is the difference between the average yield on interest earning assets and the average rate paid on interest bearing liabilities. |
(3) | The net interest margin is equal to net interest income divided by average interest earning assets. |
(4) | In order to present pre-tax income and resultant yields on tax exempt investments and loans on a basis comparable to those on taxable investments and loans, a tax equivalent adjustment is made to interest income. The tax equivalent adjustment has been computed using a Federal income tax rate of 35% in 2004 and 34% in 2003 and has the effect of increasing interest income by $392,000 and $364,000 for the three month periods ended June 30, 2004 and 2003, respectively. |
Financial Summary
Average Balances, Yields and Costs
(Unaudited)
Six Months Ended | Six Months Ended | |||||||||||||||||||||||
June 30, 2004 | June 30, 2003 | |||||||||||||||||||||||
Average | Average | |||||||||||||||||||||||
Average | Yield / | Average | Yield / | |||||||||||||||||||||
(in thousands) | Balance | Interest | Cost | Balance | Interest | Cost | ||||||||||||||||||
INTEREST EARNING ASSETS: | ||||||||||||||||||||||||
Interest bearing deposits with banks | $ | 22,772 | $ | 110 | 0.97 | % | $ | 3,417 | $ | 24 | 1.40 | % | ||||||||||||
Federal funds sold | 25,814 | 126 | 0.98 | 65,788 | 376 | 1.14 | ||||||||||||||||||
Securities | 863,642 | 18,435 | 4.27 | 892,765 | 18,477 | 4.14 | ||||||||||||||||||
Loans (1) | 1,548,310 | 47,248 | 6.10 | 1,247,927 | 40,964 | 6.57 | ||||||||||||||||||
Total interest earning assets | $ | 2,460,538 | $ | 65,919 | 5.36 | % | $ | 2,209,897 | $ | 59,841 | 5.42 | % | ||||||||||||
NON-INTEREST EARNING ASSETS: | ||||||||||||||||||||||||
Cash and due from banks | $ | 27,582 | $ | 24,290 | ||||||||||||||||||||
Allowance for loan losses | (18,072 | ) | (16,676 | ) | ||||||||||||||||||||
Premises and equipment, net | 11,747 | 12,171 | ||||||||||||||||||||||
Other assets | 73,190 | 63,751 | ||||||||||||||||||||||
Total non-interest earning assets | 94,447 | 83,536 | ||||||||||||||||||||||
Total assets | $ | 2,554,985 | $ | 2,293,433 | ||||||||||||||||||||
INTEREST BEARING LIABILITIES: | ||||||||||||||||||||||||
Deposits: | ||||||||||||||||||||||||
Savings, money markets, and interest bearing demand | $ | 821,177 | $ | 5,552 | 1.35 | % | $ | 603,623 | $ | 5,469 | 1.81 | % | ||||||||||||
Certificates of deposit of $100,000 or more | 154,604 | 1,957 | 2.53 | 138,418 | 2,097 | 3.03 | ||||||||||||||||||
Other time deposits | 453,925 | 6,293 | 2.77 | 464,527 | 7,591 | 3.27 | ||||||||||||||||||
Total interest bearing deposits | 1,429,706 | 13,802 | 1.93 | 1.206,568 | 15,157 | 2.51 | ||||||||||||||||||
Borrowed funds | 737,450 | 17,753 | 4.81 | 748,132 | 17,931 | 4.79 | ||||||||||||||||||
Subordinated debentures | 48,545 | 1,650 | 6.80 | 38,288 | 1,592 | 8.32 | ||||||||||||||||||
Total interest bearing liabilities | $ | 2,215,701 | $ | 33,205 | 3.00 | % | $ | 1,992,988 | $ | 34,680 | 3.48 | % | ||||||||||||
NON-INTEREST BEARING LIABILITIES: | ||||||||||||||||||||||||
Demand deposits | $ | 172,851 | $ | 125,973 | ||||||||||||||||||||
Other liabilities | 20,890 | 27,509 | ||||||||||||||||||||||
Stockholders’ equity | 145,543 | 146,963 | ||||||||||||||||||||||
Total non-interest bearing liabilities and stockholders’ equity | $ | 339,284 | $ | 300,445 | ||||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 2,554,985 | $ | 2,293,433 | ||||||||||||||||||||
Interest rate spread (2) | 2.36 | % | 1.94 | % | ||||||||||||||||||||
Net interest income and margin (3) | $ | 32,714 | 2.66 | % | $ | 25,161 | 2.28 | % | ||||||||||||||||
Net interest income and margin (tax equivalent basis)(4) | $ | 33,516 | 2.72 | % | $ | 25,861 | 2.34 | % | ||||||||||||||||
(1) | Loan origination fees are considered an adjustment to interest income. For the purpose of calculating loan yields, average loan balances include nonaccrual loans with no related interest income. |
(2) | The interest rate spread is the difference between the average yield on interest earning assets and the average rate paid on interest bearing liabilities. |
(3) | The net interest margin is equal to net interest income divided by average interest earning assets. |
(4) | In order to present pre-tax income and resultant yields on tax exempt investments and loans on a basis comparable to those on taxable investments and loans, a tax equivalent adjustment is made to interest income. The tax equivalent adjustment has been computed using a Federal income tax rate of 35% in 2004 and 34% in 2003 and has the the effect of increasing interest income by $802,000 and $700,000 for the six month periods ended June 30, 2004 and 2003, respectively. |