EXHIBIT 99
Codorus Valley Bancorp, Inc.
Press Release dated January 16, 2007
CODORUS VALLEY BANCORP, INC. REPORTS INCREASED EARNINGS
AND DIVIDEND DECLARATIONS
FOR IMMEDIATE RELEASE -- York, Pennsylvania (January 16, 2007) -- Codorus
Valley Bancorp, Inc. (Nasdaq: CVLY), the parent company of PeoplesBank, today
announced earnings of $1,131,000 or $.32 per share ($.32 diluted) for the
quarter ended December 31, 2006. This represents a $110,000 or 11% increase over
the $1,021,000 or $.29 per share ($.29 diluted) earned for the same quarter of
2005. For the full year 2006, earnings were $5,322,000 or $1.53 per share ($1.49
diluted), or 15% greater than the $4,617,000 or $1.33 per share ($1.30 diluted)
earned in 2005. Earnings for both periods were impacted by an increase in net
interest income from loan growth and higher yields on variable rate business
loans. While net interest income increased, net interest margin decreased due to
increased funding costs, which resulted from an inverted US treasury yield curve
environment and competitive pricing pressures. An increase in noninterest income
from wealth management and deposit services also contributed to the success of
current operations. 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
February 13, 2007, to shareholders of record January 23, 2007.
Larry J. Miller, President and Chief Executive Officer, commented, "We are
delighted with the outstanding results achieved by the Company in 2006. Everyone
associated with this Company has worked diligently in executing our strategic
plan, and this has been reflected in our strong, consistent growth. As we enter
2007, we fully recognize the margin pressures facing our industry as a result of
the inverted yield curve environment. We will strive to meet this challenge,
while remaining focused on our long-term commitments to our community, our
clients, and our shareholders. "
-- MORE --
-- CONTINUED --
4
On December 31, 2006, total assets were approximately $548 million,
representing a $72 million or 15% increase above December 31, 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
-- MORE --
5
Condensed Consolidated Statements of Income
(in thousands of dollars, except per share data)
Three months ended Year ended
December 31, December 31,
2006 2005 2006 2005
(Unaudited) (Unaudited) (Unaudited) (Audited)
----------- ----------- ----------- ---------
Interest income $8,924 $7,158 $33,319 $25,572
Interest expense 4,358 2,735 15,077 9,149
------ ------ ------- -------
Net interest income 4,566 4,423 18,242 16,423
Provision for loan losses 150 250 650 775
Noninterest income 1,374 1,182 5,222 4,717
Loss on sale of securities (80) 0 (80) (86)
Gain on sale of mortgages 113 94 323 372
Noninterest expense 4,347 4,104 15,890 14,482
------ ------ ------- -------
Income before income taxes 1,476 1,345 7,167 6,169
Income taxes 345 324 1,845 1,552
------ ------ ------- -------
Net income $1,131 $1,021 $ 5,322 $ 4,617
====== ====== ======= =======
Basic earnings per share $ 0.32 $ 0.29 $ 1.53 $ 1.33
Diluted earnings per share $ 0.32 $ 0.29 $ 1.49 $ 1.30
Condensed Consolidated Statements of Financial Condition
(in thousands of dollars)
December 31,
2006 2005
(Unaudited) (Audited)
----------- ---------
Cash and short term investments $ 35,372 $ 12,085
Investment securities 80,926 69,664
Loans 407,260 369,631
Allowance for loan losses (3,126) (2,538)
Premises and equipment, net 10,495 10,962
Other assets 17,285 16,248
-------- --------
Total assets $548,212 $476,052
======== ========
Deposits $456,645 $385,154
Borrowed funds 45,339 49,493
Other liabilities 3,442 2,676
Shareholders' equity 42,786 38,729
-------- --------
Total liabilities and shareholders' equity $548,212 $476,052
======== ========
-- MORE --
6
Selected Financial Data (Unaudited)
Quarterly Annual
---------------------------------------------------------- ------------------
2006 2006 2006 2006 2005 December 31,
4th Qtr 3rd Qtr 2nd Qtr 1st Qtr 4th Qtr 2006 2005
------- ------- ------- ------- ------- ------ -------
Earnings and Per Share Data (1)
(in thousands, except per share data)
Net income $1,131 $1,407 $1,423 $1,361 $1,021 $5,322 $4,617
Basic earnings per share $ 0.32 $ 0.40 $ 0.41 $ 0.39 $ 0.29 $ 1.53 $ 1.33
Diluted earnings per share $ 0.32 $ 0.39 $ 0.40 $ 0.38 $ 0.29 $ 1.49 $ 1.30
Cash dividends per share $0.129 $0.124 $0.118 $0.118 $0.118 $0.489 $0.447
Book value per share $12.21 $12.04 $11.54 $11.35 $11.11 $12.21 $11.11
Average shares outstanding 3,501 3,486 3,485 3,485 3,482 3,489 3,475
Average diluted shares outstanding 3,588 3,567 3,565 3,564 3,554 3,571 3,544
Performance Ratios (%)
Return on average assets 0.85 1.08 1.15 1.13 0.88 1.05 1.06
Return on average equity 10.56 13.63 14.17 13.79 10.54 12.99 12.25
Return on average realized equity (2) 10.50 13.42 14.02 13.64 10.44 12.83 12.21
Net interest margin (3) 3.77 3.88 4.01 4.35 4.17 3.97 4.16
Efficiency ratio (4) 66.8 63.0 63.3 64.3 68.5 65.1 66.1
Asset Quality Ratios (%)
Net loan charge-offs (recoveries) to
average loans (5) (0.01) 0.10 (0.02) (0.02) (0.01) 0.02 0.03
Allowance for losses to total loans 0.77 0.75 0.75 0.74 0.69 0.77 0.69
Nonperforming assets to total loans
and other real estate 1.09 1.38 1.44 1.03 0.28 1.09 0.28
Capital Ratios (%)
Average equity to average assets 8.00 7.96 8.12 8.19 8.35 8.07 8.65
Tier 1 leverage capital ratio 9.83 9.98 10.25 8.84 9.57 9.83 9.57
Tier 1 risk-based capital ratio 11.99 12.11 12.15 10.65 10.61 11.99 10.61
Total risk-based capital ratio 12.71 12.81 12.85 11.34 11.26 12.71 11.26
(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 (recoveries) are annualized
-- END --
7