EXHIBIT 99
Codorus Valley Bancorp, Inc.
Press Release dated April 14, 2006
Cash and Stock Dividend Declarations
and Financial Highlights
On April 11, 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 May 9, 2006, to shareholders of record April 25,
2006. In addition, a 5 percent stock dividend was declared, payable on or before
June 8, 2006, to shareholders of record April 25, 2006.
Codorus Valley earned $1,361,000 or $.41 per share ($.40 diluted) for the
quarter ended March 31, 2006, compared to $1,228,000 or $.37 per share ($.36
diluted) for the same quarter of 2005. The $133,000 or 11 percent increase in
net income was the result of increases in net interest income and noninterest
income, which more than offset an increase in noninterest expense. The $723,000
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 $118,000 or 10 percent increase in noninterest income (including
gains) was primarily attributable to increases in trust fees and service charges
on deposit accounts, which resulted from increased sales and business growth.
The $640,000 or 20 percent increase in noninterest expense was attributable in
part to corporate expansion, which increased personnel, occupancy, and furniture
and equipment expenses. PeoplesBank, Codorus Valley's banking subsidiary, opened
two full service financial centers and renovated two existing financial centers
during the prior year, which increased 2006 operating costs. The increase in
personnel expense also reflected the planned addition of key sales and support
staff, and normal merit increases. The increase in other expense was
attributable in part to increases in charitable donations (net of state tax
credits), ATM/debit card processing (increased transaction volume) and carrying
costs on problem assets (the prior year included a gain from the sale of real
estate acquired in satisfaction of debt, which lowered this expense in 2005).
Total assets were approximately $490 million on March 31, 2006, an increase of
$70 million or 17 percent above March 31, 2005. Asset growth occurred primarily
in business and consumer loans, which were funded by growth in deposits.
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 operates 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.
April 14, 2006
York, Pennsylvania
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CODORUS VALLEY BANCORP, INC.
FINANCIAL HIGHLIGHTS
Condensed Consolidated Statements of Income (Unaudited)
(in thousands of dollars, except per share data)
Three months ended
March 31,
------------------
2006 2005
------ ------
Interest income $7,788 $5,865
Interest expense 3,092 1,892
------ ------
Net interest income 4,696 3,973
Provision for loan losses 210 200
Noninterest income 1,195 1,099
Gain on sale of mortgages 88 66
Noninterest expense 3,921 3,281
------ ------
Income before income taxes 1,848 1,657
Federal income tax 487 429
------ ------
Net income $1,361 $1,228
====== ======
Basic earnings per share $ 0.41 $ 0.37
Diluted earnings per share $ 0.40 $ 0.36
Condensed Consolidated Statements of Financial Condition
(in thousands of dollars)
March 31, December 31, March 31,
2006 2005 2005
(Unaudited) (Audited) (Unaudited)
----------- ------------ -----------
Cash and short term investments $ 21,077 $ 12,085 $ 12,297
Investment securities 69,774 69,664 71,555
Loans 373,957 369,631 311,634
Allowance for loan losses (2,763) (2,538) (2,064)
Premises and equipment, net 11,054 10,962 10,698
Other assets 16,431 16,248 15,731
-------- -------- --------
Total assets $489,530 $476,052 $419,851
======== ======== ========
Deposits $407,438 $385,154 $344,585
Borrowed funds 39,320 49,493 35,855
Other liabilities 3,215 2,676 2,941
Shareholders' equity 39,557 38,729 36,470
-------- -------- --------
Total liabilities and shareholders' equity $489,530 $476,052 $419,851
======== ======== ========
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CODORUS VALLEY BANCORP, INC.
FINANCIAL HIGHLIGHTS
Selected Financial Data (Unaudited)
Quarterly
-----------------------------------------------
2006 2005 2005 2005 2005
1st Qtr 4th Qtr 3rd Qtr 2nd Qtr 1st Qtr
------- ------- ------- ------- -------
Earnings and Per Share Data (1)
(in thousands, except per share data)
Net income $1,361 $1,021 $1,283 $1,085 $1,228
Basic earnings per share $ 0.41 $ 0.31 $ 0.39 $ 0.33 $ 0.37
Diluted earnings per share $ 0.40 $ 0.30 $ 0.38 $ 0.32 $ 0.36
Cash dividends per share $0.124 $0.124 $0.119 $0.113 $0.113
Book value per share $11.92 $11.67 $11.54 $11.36 $11.04
Average shares outstanding 3,319 3,316 3,314 3,307 3,302
Average diluted shares outstanding 3,394 3,385 3,374 3,373 3,372
Performance Ratios (%)
Return on average assets 1.13 0.88 1.17 1.02 1.18
Return on average equity 13.79 10.54 13.45 11.66 13.43
Return on average realized equity (2) 13.64 10.44 13.41 11.62 13.46
Net interest margin (3) 4.35 4.17 4.14 4.05 4.30
Efficiency ratio (4) 64.3 68.5 64.2 66.4 62.8
Asset Quality Ratios (%)
Net loan charge-offs to average loans (5) (0.02) (0.01) 0.10 0.04 0.00
Allowance for losses to total loans 0.74 0.69 0.68 0.69 0.66
Nonperforming assets to total loans
and other real estate 1.03 0.28 1.13 0.18 0.26
Capital Ratios (%)
Average equity to average assets 8.19 8.35 8.67 8.79 8.81
Tier 1 leverage capital ratio 8.84 9.57 9.62 9.56 9.46
Tier 1 risk-based capital ratio 10.64 10.61 11.32 11.52 11.63
Total risk-based capital ratio 11.33 11.26 11.95 12.15 12.24
(1) per share amounts and shares outstanding were adjusted for stock dividends
declared
(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) net loan charge-offs are annualized
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