Nittany Financial Corp. Subject: 3rd Qtr 2004 Earnings
Contact: Samuel J. Malizia, Chairman of the Board
David Z. Richards, Jr., President & CEO
(814) 238-5724
Date: November 3, 2004
FOR IMMEDIATE RELEASE
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NITTANY FINANCIAL CORP. ANNOUNCES
A 74% INCREASE IN YEAR TO DATE EARNINGS
State College, PA....Nittany Financial Corp., (the "Company") (OTC Bulletin
Board: NTNY) the holding company for Nittany Bank, Vantage Investment Advisors,
LLC and Nittany Asset Management Inc., today announced third quarter 2004
earnings.
Fully diluted earnings for the nine-month period ending September 30, 2004 were
$1,931,740 or $.93 per share, compared to $1,113,300 or $0.59 per share for the
nine-month period ending September 30, 2003, a 74% increase. Quarterly earnings
were $797,800, or $.38 per share, compared to $458,450, or $0.23 per share, for
the same quarter in 2003, also a 74% increase. Net interest income for the three
months ended September 30, 2004 was $2,298,900 compared to $1,739,500 for the
same period ending September 30, 2003, a $559,400, a 32% increase. The increase
resulted from an increase in the loan portfolio and net interest margin for the
quarter. The net interest margin increased to approximately 3.29% from 3.00% in
the second quarter of 2004. Non-interest income grew to $851,490 for the third
quarter from $392,870 for the same time period in 2003, due to the increase in
asset management income and service fees on deposit accounts at Nittany Bank.
Vantage Investment Advisors now has over $250 million under management,
approximately a $50 million increase from year-end.
"The steady long term growth in loans and deposits at Nittany Bank is the result
of our competitive rates and superior customer service," commented Samuel J.
Malizia, Chairman of the Board for Nittany Financial Corp. "We intend to
continue this strategy when we expand our operations by opening an office in the
Bellefonte market early next year."
The balance sheet for the Company also showed growth in year 2004 and high
credit quality. Total assets for the consolidated entity were $295,155,300 on
September 30, 2004, compared to $248,587,300 at December 31, 2003, a 19%
increase. Total deposits grew by $25,665,940 or 12% over the same time period,
with the Company's core Nittany Savings account providing the majority of the
increase with growth of 14%. Total net loans grew by 24% to $226,462,500 for the
nine-month period ending September 30, 2004. Non-performing loans over 90 days
delinquent were only $8,800, which is less than 0.01% of the total loan
portfolio at September 30, 2004.
President and CEO David Richards added, "We are very pleased to have achieved
our loan growth goals for the quarter without compromising our credit quality
standards. A strong balance sheet and core earnings allow us to continually
invest in technology and a quality staff."
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 51 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 over $250 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,
2004 2003
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(unaudited)
ASSETS
Cash and due from banks $ 6,842,808 $ 805,812
Interest-bearing deposits with other banks 7,586,726 14,147,474
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Cash and cash equivalents 14,429,534 14,953,286
Investment securities available for sale 774,294 4,074,095
Investment securities held to maturity (estimated
market value of $43,372,047 and $39,168,895) 44,911,886 39,246,289
Loans receivable (net of allowance for loan losses
of $2,107,244 and $1,737,435) 226,462,486 182,742,537
Premises and equipment 2,519,408 2,570,953
Federal Home Loan Bank stock 2,223,300 1,311,300
Intangible assets 1,763,231 1,763,231
Accrued interest and other assets 2,071,117 1,925,622
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TOTAL ASSETS $ 295,155,256 $ 248,587,313
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LIABILITIES
Deposits:
Noninterest-bearing demand $ 10,212,041 $ 7,880,177
Interest-bearing demand 24,488,842 21,902,355
Money market 38,062,725 34,237,951
Savings 155,711,676 136,273,936
Time 18,083,354 20,598,238
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Total deposits 246,558,638 220,892,657
Short-term borrowings 6,791,622 2,363,887
Other borrowings 24,237,985 9,829,866
Accrued interest payable and other liabilities 807,428 673,159
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TOTAL LIABILITIES 278,395,673 233,759,569
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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, 1,924,621 and 1,603,960 issued and outstanding 192,462 160,396
Additional paid-in capital 14,287,483 14,323,021
Retained earnings 2,288,082 356,344
Accumulated other comprehensive loss (8,444) (12,017)
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TOTAL STOCKHOLDERS' EQUITY 16,759,583 14,827,744
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TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 295,155,256 $ 248,587,313
============= =============
NITTANY FINANCIAL CORP.
CONSOLIDATED STATEMENT OF INCOME
Three-Months Ended September 30, Nine-months Ended September 30,
2004 2003 2004 2003
---------- ---------- ----------- ----------
(unaudited) (unaudited)
INTEREST AND DIVIDEND INCOME
Loans, including fees $3,266,905 $2,601,103 $ 9,034,114 $7,011,893
Interest-bearing deposits with other banks 24,473 8,898 49,679 48,803
Investment securities 371,767 328,101 1,114,783 1,074,435
----------- ---------- ---------- ----------
Total interest and dividend income 3,663,145 2,938,102 10,198,576 8,135,131
---------- ---------- ----------- ----------
INTEREST EXPENSE
Deposits 1,185,689 1,051,561 3,492,226 3,171,166
Short-term borrowings 41,023 19,023 65,037 44,011
Other borrowings 137,524 128,013 395,720 389,654
---------- ---------- ----------- ----------
Total interest expense 1,364,236 1,198,597 3,952,983 3,604,831
---------- ---------- ----------- ----------
NET INTEREST INCOME 2,298,909 1,739,505 6,245,593 4,530,300
Provision for loan losses 138,000 230,000 442,000 508,000
---------- ---------- ----------- ----------
NET INTEREST INCOME AFTER PROVISION FOR
LOAN LOSSES 2,160,909 1,509,505 5,803,593 4,022,300
---------- ---------- ----------- ----------
NONINTEREST INCOME
Service fees on deposit accounts 177,863 124,980 498,231 370,437
Investment security gain 32,707 - 32,707 6,691
Asset management fees and commissions 614,209 231,764 1,773,425 721,434
Other 26,709 36,125 81,375 123,070
---------- ---------- ----------- ----------
Total noninterest income 851,488 392,869 2,385,738 1,221,632
---------- ---------- ----------- ----------
NONINTEREST EXPENSE
Compensation and employee benefits 730,611 544,768 2,168,606 1,607,880
Occupancy and equipment 186,363 180,397 540,492 473,618
Professional fees 49,290 55,676 144,088 157,425
Data processing fees 121,146 112,338 351,317 285,599
Supplies, printing, and postage 39,084 35,300 104,015 103,975
Advertising 37,721 42,594 115,849 104,386
ATM processing fees 36,191 34,635 106,044 97,257
Commission expense 381,639 90,385 1,120,476 385,508
Other 205,537 142,138 545,706 360,610
---------- ---------- ----------- ----------
Total noninterest expense 1,787,582 1,238,231 5,196,593 3,576,258
---------- ---------- ----------- ----------
Income before income taxes 1,224,815 664,143 2,992,738 1,667,674
Income taxes 427,000 205,691 1,061,000 554,390
---------- ---------- ----------- ----------
NET INCOME 797,815 458,452 $ 1,931,738 $1,113,284
========== ========== =========== ==========
EARNINGS PER SHARE
Basic $ 0.41 $ 0.24 $ 1.00 $ 0.64
Diluted 0.38 0.23 0.93 0.59
WEIGHTED AVERAGE SHARES OUTSTANDING
Basic 1,924,621 1,873,078 1,924,621 1,749,564
Diluted 2,080,438 2,024,416 2,078,490 1,897,362