Nittany Financial Corp. Subject: 3Q 2003 Earnings
Contact: Samuel J. Malizia, Chairman of the Board
David Z. Richards, Jr., President & CEO
(814) 238-5724
Date: October 21, 2003
FOR IMMEDIATE RELEASE
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NITTANY FINANCIAL CORP. POSTS
94% RISE IN 3rd QUARTER EARNINGS
Year-To-Date Asset Growth at 33% Through September, 2003
State College, PA....Nittany Financial Corp. (OTC Bulletin Board: NTNY) (the
"Company"), the holding company for Nittany Bank, Vantage Investment Advisors,
LLC and Nittany Asset Management Inc., today announced record three and nine
month earnings for 2003. In addition, growth at the Company's Nittany Bank
subsidiary continued to reach record high levels for core deposits and loans.
Fully diluted earnings for the three month period ending September 30, 2003 were
$458,000 or $0.27 per share, compared to $236,000 or $0.16 per share for the
three month period ending September 30, 2002, a 94% increase. Year to date,
earnings for the nine months ending September 30, 2003 were up 90% to $1,113,000
compared to $586,000 for the nine months ended September 30, 2002. The earnings,
net of the provision for loan losses, for the three months ended September 30,
2003 and 2002, were $230,000 and $142,000, respectively.
Net interest income for the nine months ended September 30, 2003 was $4,530,000
compared to $3,078,000 for the same period ending September 30, 2002, a 47%
rise. The $1,452,000 rise in net interest income for the first nine months of
2003 was also accompanied by a $783,000 rise in non-interest income for the
period, while non-interest expenses increased by $1,287,000 for the nine month
period ending September 30, 2003.
The Company also reported that Vantage Investment Advisors, LLC, the fee based
asset management subsidiary purchased at the beginning of 2003, continued to
grow steadily and contributed $0.02 per fully diluted share to the consolidated
earnings for the third quarter of 2003.
The balance sheet for the Company also saw strong growth and continued excellent
credit quality. Total assets for the consolidated entity were $239,184,000 on
September 30, 2003, compared to $179,659,000 at December 31, 2002. Total
deposits at September 30, 2003, were $206,036,000, an increase of 31% from
December 31, 2002. The growth in deposits was primarily in the core checking and
savings accounts area. Total net loans grew by 42% to $176,115,000 for the nine
month period ending September 30, 2003.
During the quarter, the Company completed and opened their newest branch office
location at 1900 South Atherton Street, which replaced a smaller office. The new
facility with three drive up lanes, a drive up ATM, six personal banking
stations and the loan operations area for the bank, created strong new customer
growth in its early stages.
President and CEO David Richards, commented on the quarterly results as follows,
"The third quarter of 2003 continued the pace set during the previous two
quarters. Nittany is executing its business plan and meeting financial targets
through three simple strategies. First and foremost, quality and professional
employee/owners are exceeding customer expectations by delivering superior
customer service. Second, we are employing the prudent use of technology to gain
efficiencies that enhance customer service, and finally, we are offering
competitive solutions for our customers needs. As we approach our fifth year
anniversary, we are thankful to the many area clients that have supported the
only community bank operated and headquartered solely in State College."
Nittany Financial Corp. (OTC Ticker Symbol "NTNY") is the parent company for
Nittany Bank, a federally chartered financial institution headquartered and
operated in State College, Pennsylvania. Nittany Bank began operations in
October, 1998 and currently operates four offices with 52 full time equivalent
employees. Nittany Bank offers a full range of financial services through its
four offices, five ATM's, telephone banking (814-231-1800) and transactional
internet banking at its www.NittanyBank.com website.
The parent company, Nittany Financial Corp., also owns two investment
subsidiaries. Nittany Asset Management Inc. offers retail investment products
through the Bank's four offices. Vantage Investment Advisors, LLC is a
Registered Investment Advisory firm providing fee based investment management
services. Vantage currently manages approximately $189 million in investments
for small business retirement plans as well as individual portfolio management
for consumers.
The foregoing material contains forward-looking statements concerning the
financial condition, results of operations and business of the Company. We
caution that such statements are subject to a number of uncertainties and actual
results could differ materially and, therefore, readers should not place undue
reliance on any forward-looking statements. The Company does not undertake, and
specifically disclaims, any obligation to publicly release the results of any
revisions that may be made to any forward-looking statements to reflect the
occurrence of anticipated or unanticipated events or circumstances after the
date of such statements.
NITTANY FINANCIAL CORP.
CONSOLIDATED BALANCE SHEET
September 30, December 31,
2003 2002
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(unaudited)
ASSETS
Cash and due from banks $ 650,824 $ 618,937
Interest-bearing deposits with other banks 5,898,259 5,233,136
Investment securities available for sale 4,434,668 6,024,009
Investment securities held to maturity (estimated
market value of $43,972,991 and $38,727,663) 44,289,418 38,359,925
Loans receivable (net of allowance for loan losses
of $1,659,288 and $1,177,141) 176,115,140 124,254,560
Premises and equipment 2,574,556 1,941,009
Federal Home Loan Bank stock 1,549,000 1,175,400
Intangible assets 1,763,231 799,217
Accrued interest and other assets 1,908,986 1,252,839
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TOTAL ASSETS $ 239,184,082 $ 179,659,032
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LIABILITIES
Deposits:
Noninterest-bearing demand $ 9,150,947 $ 6,159,204
Interest-bearing demand 19,807,856 18,717,951
Money market 34,743,942 27,517,955
Savings 122,556,546 86,498,462
Time 19,776,318 17,958,397
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Total deposits 206,035,609 156,851,969
Short-term borrowings 7,662,130 1,141,104
Other borrowings 10,958,792 10,615,650
Accrued interest payable and other liabilities 559,575 1,145,853
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TOTAL LIABILITIES 225,216,106 169,754,576
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STOCKHOLDERS' EQUITY
Serial preferred stock, no par value; 5,000,000 shares
authorized, none issued - -
Common stock, $.10 par value; 10,000,000 shares
authorized, 1,560,898 and 1,367,230 issued and outstanding 156,090 136,723
Additional paid-in capital 13,973,134 11,045,912
Retained deficit (155,410) (1,268,694)
Accumulated other comprehensive loss (5,838) (9,485)
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TOTAL STOCKHOLDERS' EQUITY 13,967,976 9,904,456
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TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 239,184,082 $ 179,659,032
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NITTANY FINANCIAL CORP.
CONSOLIDATED STATEMENT OF INCOME
Three-Months Ended Nine-months Ended
September 30, September 30,
2003 2002 2003 2002
---------- ---------- ----------- ----------
(unaudited) (unaudited)
INTEREST AND DIVIDEND INCOME
Loans, including fees $2,601,103 $1,860,797 $ 7,011,893 $4,949,651
Interest-bearing deposits with other banks 8,898 43,673 48,803 108,236
Investment securities 328,101 400,910 1,074,435 1,303,893
---------- ---------- ----------- ----------
Total interest and dividend income 2,938,102 2,305,380 8,135,131 6,361,780
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INTEREST EXPENSE
Deposits 1,051,561 1,008,544 3,171,166 2,789,419
Short-term borrowings 19,023 53,040 44,011 153,333
Other borrowings 128,013 110,817 389,654 340,876
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Total interest expense 1,198,597 1,172,401 3,604,831 3,283,628
---------- ---------- ----------- ----------
NET INTEREST INCOME 1,739,505 1,132,979 4,530,300 3,078,152
Provision for loan losses 230,000 142,000 508,000 410,000
---------- ---------- ----------- ----------
NET INTEREST INCOME AFTER PROVISION FOR
LOAN LOSSES 1,509,505 990,979 4,022,300 2,668,152
---------- ---------- ----------- ----------
NONINTEREST INCOME
Service fees on deposit accounts 124,980 119,717 370,437 333,036
Investment security gain - - 6,691 7,630
Asset management fees 231,764 - 721,434 -
Other 36,125 41,652 123,070 98,730
---------- ---------- ----------- ----------
Total noninterest income 392,869 161,369 1,221,632 439,396
---------- ---------- ----------- ----------
NONINTEREST EXPENSE
Compensation and employee benefits 544,768 388,630 1,607,880 1,118,858
Occupancy and equipment 180,397 124,102 473,618 373,090
Professional fees 55,676 41,364 157,425 107,102
Data processing fees 112,338 63,618 285,599 186,292
Supplies, printing, and postage 35,300 25,932 103,975 91,759
Advertising 42,594 30,381 104,386 91,921
ATM processing fees 34,635 32,945 97,257 97,067
Commission expense 90,385 - 385,508 -
Other 142,138 78,576 360,610 223,148
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Total noninterest expense 1,238,231 785,548 3,576,258 2,289,237
---------- ---------- ----------- ----------
Income before income taxes 664,143 366,800 1,667,674 818,311
Income taxes 205,691 130,749 554,390 232,749
---------- ---------- ----------- ----------
NET INCOME $ 458,452 $ 236,051 $1,113,284 $ 585,562
========== ========== ========== ==========
EARNINGS PER SHARE
Basic $ 0.29 $ 0.17 $ 0.76 $ 0.43
Diluted 0.27 0.16 0.70 0.41
WEIGHTED AVERAGE SHARES OUTSTANDING
Basic 1,560,898 1,359,973 1,457,970 1,359,959
Diluted 1,687,013 1,461,941 1,581,135 1,440,830