Nittany Financial Corp. Subject: 1st Qtr 2004 Earnings
Contact: Samuel J. Malizia, Chairman of the Board
David Z. Richards, Jr., President & CEO
(814) 238-5724
Date: May 7, 2004
FOR IMMEDIATE RELEASE
- ---------------------
NITTANY FINANCIAL CORP. ANNOUNCES
INCREASED FIRST QUARTER EARNINGS
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 increased first
quarter earnings for 2004.
Fully diluted earnings for the three month period ending March 31, 2004 were
$496,100 or $0.24 per share, compared to $299,200 or $0.16 per share for the
three month period ending March 31, 2003, a 66% increase. Net interest income
for the three months ending March 31, 2004 was $1,861,000 compared to $1,298,000
for the same period ending March 31, 2003, a $563,000 or 43% rise. The increase
resulted from continued loan and deposit growth combined with a net interest
margin which remained steady at approximately 3.00%. Noninterest income grew to
$723,000 for the quarter from $473,800 for the same time period in 2003, mainly
due to the increase in Vantage Investment Advisor, LLC assets under management
and service fees on deposit accounts at Nittany Bank.
"The sustained growth of Nittany Bank and Vantage Investment Advisors, LLC
allowed the Company to continue to prosper into the new calendar year,"
commented Samuel J. Malizia, Chairman of the Board for Nittany Financial Corp.
Malizia added, "Both Nittany Bank and Vantage are focusing on their primary
goals of customer service, superior products, and stockholder value and it
continues to pay dividends."
The balance sheet for the Company also showed strong growth and excellent credit
quality. Total assets for the consolidated entity were $266,215,000 on March 31,
2004, compared to $201,907,000 at March 31, 2003, a 32% annual increase. Total
deposits grew by 35% over the same time period in 2003, with the Company's core
Nittany Savings account providing the majority of the increases with growth of
55%. Total net loans grew by 49% to $195,127,000 for the quarter ending March
31, 2004 compared to the first quarter of 2003. Non-performing loans over 90
days delinquent were only $15,400 or 0.008% of the total loan portfolio.
President and CEO David Richards added, "Despite the current interest rate
environment and intense local competition, we are creating significant
shareholder value through the hard work of the quality professionals at Nittany.
Our commitment to offer the best service, products and technology as the area's
hometown bank is creating growth and value for our shareholders, clients,
employees and community. The 20% stock dividend completed during the quarter is
further proof of this commitment."
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 55 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 $240 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
March 31, December 31,
2004 2003
------------- -------------
(unaudited)
ASSETS
Cash and due from banks $ 5,548,013 $ 805,812
Interest-bearing deposits with other banks 9,857,190 14,147,474
Investment securities available for sale 3,251,097 4,074,095
Investment securities held to maturity (estimated
market value of $45,210,070 and $39,168,895) 44,769,578 39,246,289
Loans receivable (net of allowance for loan losses
of $1,817,751 and $1,737,475) 195,126,530 182,742,537
Premises and equipment 2,575,024 2,570,953
Federal Home Loan Bank stock 1,393,500 1,311,300
Intangible assets 1,763,231 1,763,231
Accrued interest and other assets 1,930,619 1,925,622
------------- -------------
TOTAL ASSETS $ 266,214,782 $ 248,587,313
============= =============
LIABILITIES
Deposits:
Noninterest-bearing demand $ 9,365,603 $ 7,880,177
Interest-bearing demand 21,700,061 21,902,355
Money market 35,019,530 34,237,951
Savings 152,361,105 136,273,936
Time 19,219,220 20,598,238
------------- -------------
Total deposits 237,665,519 220,892,657
Short-term borrowings 2,509,686 2,363,887
Other borrowings 9,775,098 9,829,866
Accrued interest payable and other liabilities 927,362 673,159
------------- -------------
TOTAL LIABILITIES 250,877,665 233,759,569
------------- -------------
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, 1,924,621 and 1,603,960 issued and outstanding 192,462 160,396
Additional paid-in capital 14,287,483 14,323,021
Retained earnings 852,395 356,344
Accumulated other comprehensive income (loss) 4,777 (12,017)
------------- -------------
TOTAL STOCKHOLDERS' EQUITY 15,337,117 14,827,744
------------- -------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 266,214,782 $ 248,587,313
============= =============
NITTANY FINANCIAL CORP.
CONSOLIDATED STATEMENT OF INCOME
Three-months Ended March 31,
2004 2003
---------- ----------
(unaudited)
INTEREST AND DIVIDEND INCOME
Loans, including fees $2,757,840 $2,108,213
Interest-bearing deposits with other banks 15,366 26,868
Investment securities 391,059 369,311
---------- ----------
Total interest and dividend income 3,164,265 2,504,392
---------- ----------
INTEREST EXPENSE
Deposits 1,159,700 1,062,622
Short-term borrowings 5,981 12,110
Other borrowings 137,692 131,423
---------- ----------
Total interest expense 1,303,373 1,206,155
---------- ----------
NET INTEREST INCOME 1,860,892 1,298,237
Provision for loan losses 110,000 90,000
---------- ----------
NET INTEREST INCOME AFTER PROVISION FOR
LOAN LOSSES 1,750,892 1,208,237
---------- ----------
NONINTEREST INCOME
Service fees on deposit accounts 146,061 118,825
Investment security gain - 6,691
Asset management fees and commissions 566,745 339,144
Other 10,130 9,094
---------- ----------
Total noninterest income 722,936 473,754
---------- ----------
NONINTEREST EXPENSE
Compensation and employee benefits 692,765 518,726
Occupancy and equipment 176,336 144,976
Professional fees 43,449 48,024
Data processing fees 119,007 77,653
Supplies, printing, and postage 32,993 37,157
Advertising 40,405 37,350
ATM processing fees 34,871 32,300
Solicitor fees 377,506 217,825
Other 165,445 109,141
---------- ----------
Total noninterest expense 1,682,777 1,223,152
---------- ----------
Income before income taxes 791,051 458,839
Income taxes 295,000 159,610
---------- ----------
NET INCOME $ 496,051 $ 299,229
========== ==========
EARNINGS PER SHARE
Basic $ 0.26 $ 0.17
Diluted 0.24 0.16
WEIGHTED AVERAGE SHARES OUTSTANDING
Basic 1,924,621 1,723,486
Diluted 2,074,229 1,846,010