EXHIBIT 99
Codorus Valley Bancorp, Inc.
Press Release dated January 17, 2006
Cash Dividend Declaration
and Financial Highlights
On January 10, 2006, the Board of Directors of Codorus Valley Bancorp, Inc.
(Nasdaq: CVLY) declared a regular quarterly cash dividend of $.13 (13 cents) per
share, payable on or before February 14, 2006, to shareholders of record January
24, 2006.
Codorus Valley earned $1,021,000 or $.32 per share ($.32 diluted) for the fourth
quarter of 2005, compared to $1,192,000 or $.38 per share ($.37 diluted) for the
same quarter of 2004. The $171,000 or 14 percent decrease in quarter-to-quarter
net income resulted from a 25 percent increase in noninterest expense, as
discussed with year-to-date earnings. Codorus Valley earned $4,617,000 or $1.46
per share ($1.44 diluted) for the full year 2005, compared to $4,008,000 or
$1.28 per share ($1.25 diluted) for 2004. The $609,000 or 15 percent increase in
net income was the result of increases in net interest income and noninterest
income, which more than offset increases in noninterest expense and the loan
loss provision. The $2,499,000 or 18 percent increase in net interest income was
attributable to an increase in interest income from a larger volume of business
and consumer loans and loan fees. The $377,000 or 8 percent increase in
noninterest income, including gains (losses), was attributable to a larger
volume of fees and commissions resulting from increased sales and business
growth. The $1,713,000 or 13 percent increase in noninterest expense was largely
attributable to corporate expansion, which increased personnel, occupancy and
marketing expenses. PeoplesBank, Codorus Valley's banking subsidiary, opened
three full service financial centers and renovated three existing financial
centers since July 2004. Personnel expense was also impacted by an increase in
performance-based compensation such as bonuses and sales commissions. Marketing
expense was impacted by the cost to develop and partially implement a unique
brand image for PeoplesBank. The $355,000 or 84 percent increase in the loan
loss provision was based on management's assessment of overall credit quality,
loan growth, local employment and uncontrollable macro-economic factors such as
rising energy costs and market interest rates.
Total assets were $476 million on December 31, 2005, an increase of
approximately $68 million or 17 percent above December 31, 2004. Asset growth
occurred primarily in business and consumer loans, which were funded by growth
in deposits and long-term borrowings. Additional financial information is
provided in the Financial Highlights section of this Press Release.
Codorus Valley Bancorp, Inc. is a financial services holding company
headquartered at Codorus Valley Corporate Center, 105 Leader Heights Road, York,
Pennsylvania. Codorus Valley operates primarily through its financial services
subsidiary, PeoplesBank, A Codorus Valley Company. PeoplesBank provides a full
range of business and consumer banking services through fourteen financial
centers throughout York County, PA, and soon plans to open a loan production
office in Towson, MD. It also offers mortgage banking, investment, insurance,
trust and real estate settlement services. Additional information is available
on the bank's website--www.peoplesbanknet.com.
Management of Codorus Valley Bancorp, Inc. has made forward-looking statements
in this Press Release. These forward-looking statements are subject to risks and
uncertainties. Forward-looking statements include information concerning
possible or assumed future results of operations of the corporation and its
subsidiaries. When words such as "believes," "expects," "anticipates" or similar
expressions occur in this Press Release, management is making forward-looking
statements. Note that many factors could affect the future financial results of
the corporation and its subsidiaries, both individually and collectively, and
could cause those results to differ materially from those expressed in the
forward-looking statements contained in this Press Release.
Questions or comments regarding this Press Release should be directed to Codorus
Valley's President and CEO, Larry J. Miller, or Treasurer, Jann A. Weaver. Mr.
Miller can be contacted by telephone at 717-747-1500 or 800-646-1970; or by
e-mail at lmiller@peoplesbanknet.com. Mr. Weaver can be contacted by telephone
at 717-747-1502 or by e-mail at jweaver@peoplesbanknet.com.
January 17, 2006
York, Pennsylvania
4
Codorus Valley Bancorp, Inc.
Financial Highlights
Condensed Consolidated Statements of Income
(in thousands of dollars, except per share data)
Three months ended Year ended
December 31, December 31,
2005 2004 2005 2004
(Unaudited) (Unaudited) (Audited) (Audited)
----------- ----------- --------- ------------
Interest income $ 7,158 $5,525 $25,572 $20,469
Interest expense 2,735 1,703 9,149 6,545
----------- ----------- --------- ------------
Net interest income 4,423 3,822 16,423 13,924
Provision for loan losses 250 215 775 420
Noninterest income 1,182 1,172 4,717 4,272
Gain (loss) on sale of securities 0 0 (86) 38
Gain on sale of mortgages 94 97 372 316
Noninterest expense 4,104 3,295 14,482 12,769
----------- ----------- --------- ------------
Income before income taxes 1,345 1,581 6,169 5,361
Federal income tax 324 389 1,552 1,353
----------- ----------- --------- ------------
Net income $1,021 $1,192 $ 4,617 $4,008
=========== =========== ========= ============
Basic earnings per share $ 0.32 $ 0.38 $ 1.46 $ 1.28
Diluted earnings per share $ 0.32 $ 0.37 $ 1.44 $ 1.25
Condensed Consolidated Statements of Financial Condition (Audited)
(in thousands of dollars)
December 31,
2005 2004
-------- --------
Cash and short term investments $ 12,085 $ 8,085
Investment securities 69,664 74,140
Loans 369,631 300,260
Allowance for loan losses (2,538) (1,865)
Premises and equipment, net 10,962 9,909
Other assets 16,248 17,142
-------- --------
Total assets $476,052 $407,671
======== ========
Deposits $385,154 $329,537
Borrowed funds 49,493 39,493
Other liabilities 2,676 2,659
Shareholders' equity 38,729 35,982
-------- --------
Total liabilities and shareholders' equity $476,052 $407,671
======== ========
5
Codorus Valley Bancorp, Inc.
Financial Highlights
Selected Financial Data (Unaudited)
<Table>
<Caption>
Quarterly Annual
------------------------------------------------- ------------------
2005 2005 2005 2005 2004 December 31,
4th Qtr 3rd Qtr 2nd Qtr 1st Qtr 4th Qtr 2005 2004
-------- ------- ------- ------- -------- ------- -------
Earnings and Per Share Data (1)
(in thousands, except per share data)
Net income $1,021 $1,283 $1,085 $1,228 $1,192 $4,617 $4,008
Basic earnings per share $ 0.32 $ 0.41 $ 0.34 $ 0.39 $ 0.38 $ 1.46 $ 1.28
Diluted earnings per share $ 0.32 $ 0.40 $ 0.34 $ 0.38 $ 0.37 $ 1.44 $ 1.25
Cash dividends per share $0.130 $0.125 $0.119 $0.119 $0.119 $0.493 $0.464
Book value per share $12.25 $12.12 $11.93 $11.59 $11.45 $12.25 $11.45
Average shares outstanding 3,158 3,156 3,150 3,145 3,139 3,152 3,132
Average diluted shares outstanding 3,224 3,213 3,212 3,212 3,203 3,215 3,198
Performance Ratios (%)
Return on average assets 0.88 1.17 1.02 1.18 1.18 1.06 1.03
Return on average equity 10.54 13.45 11.66 13.43 13.24 12.25 11.48
Return on average realized equity (2) 10.44 13.41 11.62 13.46 13.39 12.21 11.65
Net interest margin (3) 4.17 4.14 4.05 4.30 4.20 4.16 4.01
Efficiency ratio (4) 68.5 64.2 66.4 62.8 63.6 66.1 67.6
Asset Quality Ratios (%)
Net loan charge-offs to average loans (5) (0.01) 0.10 0.04 0.00 0.09 0.03 0.09
Allowance for losses to total loans 0.69 0.68 0.69 0.66 0.62 0.69 0.62
Nonperforming assets to total loans
and other real estate 0.28 1.13 0.18 0.26 0.72 0.28 0.72
Capital Ratios (%)
Average equity to average assets 8.35 8.67 8.79 8.81 8.94 8.65 8.97
Tier 1 leverage capital ratio 9.57 9.62 9.56 9.46 9.86 9.57 9.86
Tier 1 risk-based capital ratio 10.61 11.32 11.52 11.63 11.77 10.61 11.77
Total risk-based capital ratio 11.26 11.95 12.15 12.24 12.34 11.26 12.34
</Table>
(1) per share amounts and shares outstanding were adjusted for stock dividends
(2) excludes accumulated other comprehensive income (loss), principally
unrealized gains (losses) on investment securities
(3) net interest income (tax-equivalent) as a percentage of average earning
assets
(4) noninterest expense as a percentage of net interest income and noninterest
income (tax-equivalent)
(5) quarterly and year-to-date net loan charge-offs are annualized
6