EXHIBIT 99
Codorus Valley Bancorp, Inc.
Press Release date July 14, 2006
CODORUS VALLEY BANCORP, INC. REPORTS RECORD EARNINGS
Strong Growth Propels Assets over $500 Million Milestone
York, Pennsylvania (July 14, 2006) -- Codorus Valley Bancorp, Inc. (Nasdaq:
CVLY), the parent company of PeoplesBank, today announced record earnings of
$1,423,000 or $.43 per share ($.42 diluted) for the quarter ended June 30, 2006,
up 31% from the $1,085,000 or $.33 per share ($.32 diluted) earned for the same
quarter of 2005. For the first six months of 2006, earnings were $2,784,000 or
$.84 per share ($.82 diluted) compared to $2,313,000 or $.70 per share ($.69
diluted) for the same period in 2005. In addition, on July 11, 2006, the Board
of Directors declared a regular quarterly cash dividend of $.13 per share
payable on or before August 8, 2006 to shareholders of record July 25, 2006.
Codorus Valley achieved a historic financial milestone on June 30, 2006,
when total assets exceeded one-half billion dollars. Total assets on that date
were approximately $517 million, or an 18% increase of $80 million over June 30,
2005 assets. Asset growth occurred primarily in business and consumer loans
which were funded by strong deposit growth.
"We are delighted with the continued strong performance of the company,"
commented Larry J. Miller, President and CEO of the Company. "As the largest
independent financial institution headquartered in York County, we are
especially proud of achieving the $500 million asset milestone while continuing
to provide our clients and neighbors with the best community banking experience
possible."
Quarter-to-quarter and year-to-date results were positively impacted by
several factors. Increases in net interest income and non-interest income more
than offset increases in non-interest expense. Strong loan growth and fee
generation as well as higher yields on variable rate business loans contributed
to the increase in net interest income. Non-interest income was positively
impacted by increased revenue from deposit and wealth management services. The
increase in non-interest expense was attributable to corporate expansion and
normal business growth. Additional detailed financial information is provided in
the Financial Highlights section of this Press Announcement.
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Codorus Valley Bancorp, Inc. is a financial services holding company
headquartered at the Codorus Valley Corporate Center, 105 Leader Heights Road,
York, Pennsylvania. Codorus Valley primarily operates 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 located throughout York County, Pennsylvania and a loan
production office in Towson, Maryland. Mortgage banking, wealth management,
insurance, trust, and real estate settlement services are also offered by the
company. Additional information is available on the bank's website at
www.peoplesbanknet.com.
Management of Codorus Valley Bancorp, Inc. has made forward-looking
statements in this Press Announcement. 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 Announcement,
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 Announcement.
QUESTIONS OR COMMENTS CONCERNING THIS PRESS ANNOUNCEMENT SHOULD BE DIRECTED
TO THE FOLLOWING:
Larry J. Miller Jann A. Weaver
Vice-Chairman, President, and CEO Treasurer
Codorus Valley Bancorp, Inc. Codorus Valley Bancorp, Inc.
717-747-1500 717-747-1502
888-846-1970 888-846-1970
lmiller@peoplesbanknet.com jweaver@peoplesbanknet.com
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Condensed Consolidated Statements of Income (Unaudited)
(in thousands of dollars, except per share data)
Three months ended Six months ended
June 30, June 30,
2006 2005 2006 2005
------ ------ ------- -------
Interest income $7,949 $6,006 $15,737 $11,871
Interest expense 3,504 2,136 6,596 4,028
------ ------ ------- -------
Net interest income 4,445 3,870 9,141 7,843
Provision for loan losses 145 175 355 375
Noninterest income 1,416 1,278 2,611 2,377
Loss on sale of securities 0 (86) 0 (86)
Gain on sale of mortgages 61 76 149 142
Noninterest expense 3,842 3,530 7,763 6,811
------ ------ ------- -------
Income before income taxes 1,935 1,433 3,783 3,090
Federal income tax 512 348 999 777
------ ------ ------- -------
Net income $1,423 $1,085 $ 2,784 $ 2,313
====== ====== ======= =======
Basic earnings per share $ 0.43 $ 0.33 $ 0.84 $ 0.70
Diluted earnings per share $ 0.42 $ 0.32 $ 0.82 $ 0.69
Condensed Consolidated Statements of Financial Condition
(in thousands of dollars)
June 30, December 31, June 30,
2006 2005 2005
(Unaudited) (Audited) (Unaudited)
----------- --------- -----------
Cash and short term investments $ 32,212 $ 12,085 $ 19,140
Investment securities 68,868 69,664 72,819
Loans 390,601 369,631 320,598
Allowance for loan losses (2,925) (2,538) (2,207)
Premises and equipment, net 10,889 10,962 10,850
Other assets 16,876 16,248 15,999
----------- --------- -----------
Total assets $516,521 $476,052 $437,199
=========== ========= ===========
Deposits $427,072 $385,154 $357,157
Borrowed funds 46,142 49,493 39,482
Other liabilities 3,112 2,676 2,923
Shareholders' equity 40,195 38,729 37,637
----------- --------- -----------
Total liabilities and shareholders'
equity $516,521 $476,052 $437,199
=========== ========= ===========
</Table>
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Selected Financial Data (Unaudited)
Quarterly Year-to-Date
---------------------------------------------- ---------------------------
2006 2006 2005 2005 2005 June 30,
2nd Qtr 1st Qtr 4th Qtr 3rd Qtr 2nd Qtr 2006 2005
------- ------- ------- ------- ------- ------- -------
Earnings and Per Share Data (1)
(in thousands, except per share data)
Net income $1,423 $1,361 $1,021 $1,283 $1,085 $2,784 $2,313
Basic earnings per share $ 0.43 $ 0.41 $ 0.31 $ 0.39 $ 0.33 $ 0.84 $ 0.70
Diluted earnings per share $ 0.42 $ 0.40 $ 0.30 $ 0.38 $ 0.32 $ 0.82 $ 0.69
Cash dividends per share $0.124 $0.124 $0.124 $0.119 $0.113 $0.248 $0.226
Book value per share $12.11 $11.92 $11.67 $11.54 $11.36 $12.11 $11.36
Average shares outstanding 3,319 3,319 3,316 3,314 3,307 3,319 3,304
Average diluted shares outstanding 3,395 3,394 3,385 3,374 3,373 3,395 3,372
Performance Ratios (%)
Return on average assets 1.15 1.13 0.88 1.17 1.02 1.14 1.10
Return on average equity 14.17 13.79 10.54 13.45 11.66 13.98 12.54
Return on average realized equity (2) 14.02 13.64 10.44 13.41 11.62 13.79 12.53
Net interest margin (3) 4.01 4.35 4.17 4.14 4.05 4.17 4.18
Efficiency ratio (4) 63.3 64.3 68.5 64.2 66.4 63.8 64.6
Asset Quality Ratios (%)
Net loan (recoveries) charge-offs to
average loans (5) (0.02) (0.02) (0.01) 0.10 0.04 (0.02) 0.02
Allowance for losses to total loans 0.75 0.74 0.69 0.68 0.69 0.75 0.69
Nonperforming assets to total loans
and other real estate 1.44 1.03 0.28 1.13 0.18 1.44 0.18
Capital Ratios (%)
Average equity to average assets 8.12 8.19 8.35 8.67 8.79 8.16 8.80
Tier 1 leverage capital ratio 10.25 8.84 9.57 9.62 9.56 10.25 9.56
Tier 1 risk-based capital ratio 12.15 10.65 10.61 11.32 11.52 12.15 11.52
Total risk-based capital ratio 12.85 11.34 11.26 11.95 12.15 12.85 12.15
</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 (recoveries) charge-offs are annualized
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