Nittany Financial Corp. Subject: 4Q 2003 Earnings
Contact: Samuel J. Malizia, Chairman of the Board
David Z. Richards, Jr., President & CEO
(814) 238-5724
Date: February 13, 2004
FOR IMMEDIATE RELEASE
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NITTANY FINANCIAL CORP. ANNOUNCES
INCREASE IN EARNINGS FOR 2003
State College, PA....Nittany Financial Corp., (the "Company") (OTC Bulletin
Board Symbol "NTNY") the holding company for Nittany Bank, Vantage Investment
Advisors, LLC and Nittany Asset Management Inc., today announced record three
and twelve month earnings for 2003.
Fully diluted earnings for the three month period ending December 31, 2003 were
$512,000 or $0.30 per share, compared to $301,000 or $0.20 per share for the
three month period ending December 31, 2002, a 50% increase. Fully diluted
earnings for the twelve months ending December 31, 2003 were up 68% to
$1,625,000 or $1.01 per share compared to $887,000 or $0.60 per share for the
twelve months ended December 31, 2002.
Despite a difficult interest rate environment, net interest income for the
twelve months ended December 31, 2003 was $6,366,000 compared to $4,404,000 for
the same period ending December 31, 2002, a $1,962,000 or 44% rise. The interest
margin gains, along with a $1,215,000 increase in non-interest income for 2003,
more than offset the higher level of non-interest expenses associated with the
growth of the Company.
"The continued strong execution of our retail banking strategy and the addition
of Vantage Investment Advisors, LLC made a positive impact on the earnings of
the Company during 2003; and our 2.25% Nittany Savings account continues to be
the best regular savings product in Central Pennsylvania," commented Samuel J.
Malizia, Chairman of the Board for Nittany Financial Corp. Malizia added, "Both
Vantage and Nittany Bank are focusing on our primary goal of making sure each
and every client is provided the best financial services."
The balance sheet for the Company also continued to show strong growth and
excellent credit quality. Total assets for the consolidated entity were
$248,587,000 on December 31, 2003, compared to $179,659,000 at December 31,
2002, a 38% annual increase. Total deposits at December 31, 2003, were
$220,893,000, an increase of 41% from December 31, 2002. All deposit products
grew by at least 15%, with savings deposits providing the majority of the
increases for 2003 with growth of 58%. Total net loans grew by 47% to
$182,743,000 for the twelve month period ending December 31, 2003.
Non-performing loans over 90 days delinquent were only $56,000 or 0.03% of the
total loan portfolio.
President and CEO David Richards added, "The entire Nittany Financial team is
creating value from our investments in technology, offices and new products. All
four banking offices and
investment subsidiaries are performing well, growing and contributing to the
financial performance of the Company. Intense local competition and a
challenging interest rate environment are bringing out the best in our employees
and directors. As the area's hometown bank and financial services provider, we
are confident in our ability to continue creating significant value for our
shareholders, clients, employees and community."
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 54 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 $208 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
December 31,
2003 2002
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(unaudited)
ASSETS
Cash and due from banks $ 805,812 $ 618,937
Interest-bearing deposits with other banks 14,147,474 5,233,136
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Cash and cash equivalents 14,953,286 5,852,073
Investment securities available for sale 4,074,095 6,024,009
Investment securities held to maturity (estimated
market value of $39,168,895 and $38,727,563) 39,246,289 38,359,925
Loans receivable 184,480,012 125,431,701
Less allowance for loan losses 1,737,475 1,177,141
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Net loans 182,742,537 124,254,560
Premises and equipment 2,570,953 1,941,009
Federal Home Loan Bank stock 1,311,300 1,175,400
Goodwill 1,763,231 799,217
Accrued interest and other assets 1,925,622 1,252,839
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TOTAL ASSETS $ 248,587,313 $ 179,659,032
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LIABILITIES
Deposits:
Noninterest-bearing demand $ 7,880,177 $ 6,159,204
Interest-bearing demand 21,902,355 18,717,951
Money market 34,237,951 27,517,955
Savings 136,273,936 86,498,462
Time 20,598,238 17,958,397
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Total deposits 220,892,657 156,851,969
Short-term borrowings 2,363,887 1,141,104
Other borrowings 9,829,866 10,615,650
Accrued interest payable and other liabilities 673,159 1,145,853
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TOTAL LIABILITIES 233,759,569 169,754,576
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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, 1,603,960 and 1,367,230 issued and outstanding 160,396 136,723
Additional paid-in capital 14,323,021 11,045,912
Retained earnings (deficit) 356,344 (1,268,694)
Accumulated other comprehensive loss (12,017) (9,485)
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TOTAL STOCKHOLDERS' EQUITY 14,827,744 9,904,456
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TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 248,587,313 $ 179,659,032
============= =============
NITTANY FINANCIAL CORP.
CONSOLIDATED STATEMENT OF INCOME
Three-Months Ended December 31, Twelve-months Ended December 31,
2003 2002 2003 2002
----------- ----------- ----------- -----------
(unaudited) (unaudited)
INTEREST AND DIVIDEND INCOME
Loans, including fees $ 2,698,627 $ 2,070,924 $ 9,710,520 $ 7,020,575
Interest-bearing deposits with other banks 8,501 24,761 57,304 132,997
Investment securities
Taxable 254,136 433,673 1,207,356 1,715,512
Exempt from federal income tax 114,208 -- 209,174 --
Other dividend income 8,358 4,958 34,607 27,192
----------- ----------- ----------- -----------
Total interest and dividend income 3,083,830 2,534,316 11,218,961 8,896,276
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INTEREST EXPENSE
Deposits 1,123,379 1,034,732 4,294,545 3,824,151
Short-term borrowings 15,583 44,858 59,594 198,191
Other borrowings 109,152 129,401 498,806 470,277
----------- ----------- ----------- -----------
Total interest expense 1,248,114 1,208,991 4,852,945 4,492,619
----------- ----------- ----------- -----------
NET INTEREST INCOME 1,835,716 1,325,325 6,366,016 4,403,657
Provision for loan losses 85,000 133,000 593,000 543,000
----------- ----------- ----------- -----------
NET INTEREST INCOME AFTER PROVISION FOR
LOAN LOSSES 1,750,716 1,192,325 5,773,016 3,860,657
----------- ----------- ----------- -----------
NONINTEREST INCOME
Service fees on deposit accounts 127,077 135,608 497,514 468,644
Investment security gains 23,439 -- 30,130 7,450
Asset management income 434,070 14,269 1,223,376 97,149
Other 4,307 6,777 59,505 22,627
----------- ----------- ----------- -----------
Total noninterest income 588,893 156,654 1,810,525 595,870
----------- ----------- ----------- -----------
NONINTEREST EXPENSE
Compensation and employee benefits 672,672 450,160 2,280,552 1,569,018
Occupancy and equipment 173,207 130,123 646,825 503,213
Professional fees 62,988 36,629 220,413 143,731
Data processing fees 111,713 64,592 397,312 250,884
Supplies, printing, and postage 36,751 35,814 140,726 127,573
Advertising 36,038 31,117 140,424 123,038
ATM processing fees 35,284 34,154 132,541 131,221
Commission expense 264,690 -- 650,198 --
Other 161,030 86,439 521,640 309,587
----------- ----------- ----------- -----------
Total noninterest expense 1,554,373 869,028 5,130,631 3,158,265
----------- ----------- ----------- -----------
Income before income taxes 785,236 479,951 2,452,910 1,298,262
Income taxes 273,482 179,000 827,872 411,749
----------- ----------- ----------- -----------
NET INCOME 511,754 300,951 $ 1,625,038 886,513
=========== =========== =========== ===========
EARNINGS PER SHARE
Basic $ 0.32 $ 0.22 $ 1.09 $ 0.65
Diluted 0.30 0.20 1.01 0.60
WEIGHTED AVERAGE SHARES OUTSTANDING
Basic 1,597,146 1,367,230 1,493,050 1,367,111
Diluted 1,715,147 1,485,136 1,614,593 1,473,248