EXHIBIT 99
Codorus Valley Bancorp, Inc.
Press Release dated October 16, 2006
CODORUS VALLEY BANCORP, INC. REPORTS INCREASED EARNINGS
AND DIVIDEND DECLARATIONS
FOR IMMEDIATE RELEASE -- York, Pennsylvania (October 16, 2006) -- Codorus
Valley Bancorp, Inc. (Nasdaq: CVLY), the parent company of PeoplesBank, today
announced increased earnings of $1,407,000 or $.40 per share ($.39 diluted) for
the quarter ended September 30, 2006. This represents a 10% increase over the
$1,283,000 or $.37 per share ($.36 diluted) earned for the same quarter of 2005.
For the first nine months of 2006, earnings were $4,191,000 or $1.20 per share
($1.18 diluted), or 17% greater than the $3,596,000 or $1.04 per share ($1.02
diluted) earned for the same period in 2005. Earnings for both periods were
positively impacted by an increase in net interest income from loan growth, loan
fees and higher yields on variable rate business loans. An increase in
noninterest income from wealth management and deposit services also contributed.
Increases in net interest income and noninterest income more than offset an
increase in noninterest expense, which was attributable in part to corporate
expansion, principally in 2005, and normal business growth.
In addition, the Company announced that the Board of Directors declared a
regular quarterly cash dividend of $.135 per share, payable on or before
November 14, 2006, to shareholders of record October 24, 2006. Cash dividends
for 2006, as adjusted, will total $.49 per share, which is an increase of $.04
or 9% above 2005. Based on the continued strong financial performance of the
company, the Board of Directors also announced earlier that it had declared a
special 5 percent stock dividend, payable on or before December 7, 2006, to
shareholders of record October 24, 2006.
Larry J. Miller, President and Chief Executive Officer, commented, "In
today's competitive interest rate environment, we are quite pleased with the
results achieved this quarter as we've remained focused on executing our
strategic plan. Our Board of Directors and Leadership Team appreciate the
investment our shareholders have made in this Company and the confidence they
have placed in us. We are also most pleased to have generated increased earnings
and rewarded our shareholders with increased cash and stock dividends."
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Codorus Valley achieved a historic financial milestone in the second
quarter of this year when total assets exceeded one-half billion dollars. On
September 30, 2006, total assets were approximately $524 million, representing a
$75 million or 17% increase above September 30, 2005. Asset growth occurred
primarily in business and consumer loans, which were funded by strong deposit
growth. Additional detailed financial information is provided in the Financial
Highlights section of this Press Announcement.
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 Nine months ended
September 30, September 30,
2006 2005 2006 2005
---------- ---------- ---------- ----------
Interest income $ 8,658 $ 6,543 $ 24,395 $ 18,414
Interest expense 4,123 2,386 10,719 6,414
---------- ---------- ---------- ----------
Net interest income 4,535 4,157 13,676 12,000
Provision for loan losses 145 150 500 525
Noninterest income 1,237 1,158 3,848 3,535
Loss on sale of securities 0 0 0 (86)
Gain on sale of mortgages 61 136 210 278
Noninterest expense 3,780 3,567 11,543 10,378
---------- ---------- ---------- ----------
Income before income taxes 1,908 1,734 5,691 4,824
Income taxes 501 451 1,500 1,228
---------- ---------- ---------- ----------
Net income $ 1,407 $ 1,283 $ 4,191 $ 3,596
========== ========== ========== ==========
Basic earnings per share $ 0.40 $ 0.37 $ 1.20 $ 1.04
Diluted earnings per share $ 0.39 $ 0.36 $ 1.18 $ 1.02
Condensed Consolidated Statements of Financial Condition
(in thousands of dollars)
September 30, December 31, September 30,
2006 2005 2005
(Unaudited) (Audited) (Unaudited)
------------- ------------ -------------
Cash and short term investments $ 25,970 $ 12,085 $ 14,278
Investment securities 75,265 69,664 72,086
Loans 398,649 369,631 338,571
Allowance for loan losses (2,969) (2,538) (2,277)
Premises and equipment, net 10,703 10,962 10,888
Other assets 16,779 16,248 15,973
------------ ----------- ------------
Total assets $ 524,397 $ 476,052 $ 449,519
============ =========== ============
Deposits $ 433,420 $ 385,154 $ 369,370
Borrowed funds 45,743 49,493 39,642
Other liabilities 3,106 2,676 2,257
Shareholders' equity 42,128 38,729 38,250
------------ ----------- ------------
Total liabilities and shareholders' equity $ 524,397 $ 476,052 $ 449,519
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Selected Financial Data (Unaudited)
Quarterly Year-to-Date
---------------------------------------------- --------------------
2006 2006 2006 2005 2005 September 30,
3rd Qtr 2nd Qtr 1st Qtr 4th Qtr 3rd Qtr 2006 2005
------- ------- ------- ------- ------- -------- --------
Earnings and Per Share Data (1)
(in thousands, except per share data)
Net income $ 1,407 $ 1,423 $ 1,361 $ 1,021 $ 1,283 $ 4,191 $ 3,596
Basic earnings per share $ 0.40 $ 0.41 $ 0.39 $ 0.29 $ 0.37 $ 1.20 $ 1.04
Diluted earnings per share $ 0.39 $ 0.40 $ 0.38 $ 0.29 $ 0.36 $ 1.18 $ 1.02
Cash dividends per share $ 0.124 $ 0.118 $ 0.118 $ 0.118 $ 0.113 $ 0.360 $ 0.329
Book value per share $ 12.04 $ 11.54 $ 11.35 $ 11.11 $ 10.99 $ 12.04 $ 10.99
Average shares outstanding 3,486 3,485 3,485 3,482 3,479 3,485 3,473
Average diluted shares outstanding 3,567 3,565 3,564 3,554 3,543 3,565 3,542
Performance Ratios (%)
Return on average assets 1.08 1.15 1.13 0.88 1.17 1.12 1.12
Return on average equity 13.63 14.17 13.79 10.54 13.45 13.85 12.85
Return on average realized equity (2) 13.42 14.02 13.64 10.44 13.41 13.66 12.83
Net interest margin (3) 3.88 4.01 4.35 4.17 4.14 4.06 4.16
Efficiency ratio (4) 63.0 63.3 64.3 68.5 64.2 63.6 64.5
Asset Quality Ratios (%)
Net loan charge-offs (recoveries) to
average loans (5) 0.10 (0.02) (0.02) (0.01) 0.10 0.04 0.05
Allowance for losses to total loans 0.75 0.75 0.74 0.69 0.68 0.75 0.68
Nonperforming assets to total loans
and other real estate 1.38 1.44 1.03 0.28 1.13 1.38 1.13
Capital Ratios (%)
Average equity to average assets 7.96 8.12 8.19 8.35 8.67 8.09 8.75
Tier 1 leverage capital ratio 9.98 10.25 8.84 9.57 9.62 9.98 9.62
Tier 1 risk-based capital ratio 12.11 12.15 10.65 10.61 11.32 12.11 11.32
Total risk-based capital ratio 12.81 12.85 11.34 11.26 11.95 12.81 11.95
(1) per share amounts and shares outstanding were adjusted for stock
dividends, including the special 5% stock dividend declared on October 10,
2006
(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 (recoveries) are
annualized
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