EXHIBIT 99.1
CODORUS VALLEY BANCORP, INC. REPORTS INCREASED EARNINGS
AND DECLARATION OF REGULAR AND SPECIAL CASH DIVIDENDS
FOR IMMEDIATE RELEASE -- York, Pennsylvania (October 16, 2007) --
Codorus Valley Bancorp, Inc. (Nasdaq: CVLY), the parent company of PeoplesBank,
today announced earnings of $1,641,000 or $.44 per share ($.43 diluted) for the
quarter ended September 30, 2007. This represents a $234,000 or 17% increase
over the $1,407,000 or $.38 per share ($.38 diluted) for the same quarter of
2006. For the first nine months of 2007, earnings were $5,037,000 or $1.37 per
share ($1.34 diluted). This represents an $846,000 or 20% increase over the
$4,191,000 or $1.15 per share ($1.12 diluted) for the same period of 2006.
Current quarter and year-to-date earnings were both positively impacted by an
increase in income from the growth of earning assets, principally business and
home equity loans, and investment securities.
Current year-to-date earnings also reflected the favorable impact of an
$839,000 pre-tax ($554,000 after-tax) first quarter recovery of loan losses that
were incurred by PeoplesBank during 2002-2003. Due to the adequacy of the
Company's allowance for loan losses the full amount of the recovery was recorded
as a reduction to the loan loss provision.
The increase in net interest income and reduction in the loan loss
provision more than offset an increase in noninterest expense. Noninterest
expense increased 16% for the first nine months of 2007 due primarily to
increased personnel costs, caused by the timing of performance incentives and
staff additions associated with normal business growth, and the recognition of
an $185,000 ($122,000 after-tax) prepayment penalty on the early pay-down of a
$2 million Federal Home Loan Bank advance. The Company paid down the advance,
which had an above market interest rate, to reduce interest expense in future
periods.
On September 30, 2007, total assets were approximately $590 million,
representing a $65 million or 12% increase above September 30, 2006. Additional
detailed financial information is provided in the Financial Highlights section
of this Press Announcement.
Codorus Valley recently announced that its Board of Directors declared
a regular quarterly cash dividend of $.14 per share, payable on or before
November 13, 2007, to shareholders of record October 23, 2007. Additionally, the
Board announced a special cash dividend of $.05 per share, payable on or before
November 13, 2007, to shareholders of record October 23, 2007. President Miller
commented,
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"The special cash dividend was declared solely as a result of the recovery the
company realized from loan losses experienced in a prior period."
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, and
real estate settlement services are also offered by the company. Regulatory
approval is presently being sought for a full service financial center in Hunt
Valley, Maryland. Additional information is available on the bank's website at
www.peoplesbanknet.com.
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, the Company 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. Those factors include, but are not limited to: credit risk,
changes in market interest rates, competition, economic downturn or recession,
and government regulation and supervision. The Company undertakes no obligation
to update or revise any forward-looking statements.
QUESTIONS OR COMMENTS CONCERNING THIS PRESS ANNOUNCEMENT SHOULD BE DIRECTED TO
THE FOLLOWING:
Larry J. Miller Jann Allen 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
(in thousands of dollars, except per share data)
Three months ended Nine months ended
September 30, September 30,
2007 2006 2007 2006
------------ ------------ ------------ ------------
Interest income $ 10,090 $ 8,658 $ 29,134 $ 24,395
Interest expense 4,741 4,123 14,070 10,719
------------ ------------ ------------ ------------
Net interest income 5,349 4,535 15,064 13,676
Provision for loan losses (35) 145 (919) 500
Noninterest income 1,399 1,237 4,001 3,848
Loss on sale of securities 0 0 (7) 0
Gain on sale of mortgages 51 61 208 210
Noninterest expense 4,662 3,780 13,418 11,543
------------ ------------ ------------ ------------
Income before income taxes 2,172 1,908 6,767 5,691
Income taxes 531 501 1,730 1,500
------------ ------------ ------------ ------------
Net income $ 1,641 $ 1,407 $ 5,037 $ 4,191
============ ============ ============ ============
Basic earnings per share $ 0.44 $ 0.38 $ 1.37 $ 1.15
Diluted earnings per share $ 0.43 $ 0.38 $ 1.34 $ 1.12
Condensed Consolidated Statements of Financial Condition
(in thousands of dollars)
September 30, December 31, September 30,
2007 2006 2006
------------ ------------ ------------
Cash and short term investments $ 38,187 $ 35,372 $ 25,970
Investment securities 84,893 80,926 75,265
Loans 442,184 407,260 398,649
Allowance for loan losses (3,048) (3,126) (2,969)
Premises and equipment, net 10,209 10,495 10,703
Other assets 17,328 17,285 16,779
------------ ------------ ------------
Total assets $ 589,753 $ 548,212 $ 524,397
============ ============ ============
Deposits $ 498,292 $ 456,645 $ 433,420
Borrowed funds 40,944 45,339 45,743
Other liabilities 3,603 3,442 3,106
Shareholders' equity 46,914 42,786 42,128
------------ ------------ ------------
Total liabilities and shareholders' equity $ 589,753 $ 548,212 $ 524,397
============ ============ ============
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Selected Financial Data
Quarterly Year-to-Date
------------------------------------------------------------- -----------------------
2007 2007 2007 2006 2006 September 30,
3rd Qtr 2nd Qtr 1st Qtr 4th Qtr 3rd Qtr 2007 2006
---------- ---------- ---------- ---------- ---------- ---------- ----------
Earnings and Per Share Data (1)
(in thousands, except per share data)
Net income $ 1,641 $ 1,627 $ 1,769 $ 1,131 $ 1,407 $ 5,037 $ 4,191
Basic earnings per share $ 0.44 $ 0.44 $ 0.48 $ 0.31 $ 0.38 $ 1.37 $ 1.15
Diluted earnings per share $ 0.43 $ 0.43 $ 0.47 $ 0.30 $ 0.38 $ 1.34 $ 1.12
Cash dividends per share $ 0.135 $ 0.129 $ 0.129 $ 0.122 $ 0.118 $ 0.393 $ 0.342
Book value per share $ 12.68 $ 12.18 $ 12.04 $ 11.63 $ 11.46 $ 12.68 $ 11.46
Average shares outstanding 3,690 3,683 3,678 3,676 3,661 3,684 3,660
Average diluted shares outstanding 3,774 3,774 3,768 3,767 3,745 3,772 3,744
Performance Ratios (%)
Return on average assets 1.12 1.13 1.28 0.85 1.08 1.18 1.12
Return on average equity 14.30 14.45 16.13 10.56 13.63 14.94 13.85
Return on average realized equity (2) 14.14 14.38 16.03 10.50 13.42 14.83 13.66
Net interest margin (3) 4.03 3.91 3.76 3.77 3.88 3.90 4.06
Efficiency ratio (4) 66.4 63.7 72.3 66.8 63.0 67.3 63.6
Asset Quality Ratios (%)
Net loan charge-offs (recoveries) to
average loans (5)
average loans (5) 0.01 (0.02) (0.82) (0.01) 0.10 (0.15) 0.04
Allowance for losses to total loans 0.69 0.71 0.71 0.77 0.75 0.69 0.75
Nonperforming assets to total loans
and other real estate 1.02 1.72 0.99 1.09 1.38 1.02 1.38
Capital Ratios (%)
Average equity to average assets 7.86 7.82 7.91 8.00 7.96 7.86 8.09
Tier 1 leverage capital ratio 9.69 9.58 9.73 9.83 9.98 9.69 9.98
Tier 1 risk-based capital ratio 11.95 11.77 11.86 11.99 12.11 11.95 12.11
Total risk-based capital ratio 12.59 12.43 12.53 12.71 12.81 12.59 12.81
(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
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