FMS FINANCIAL CORPORATION
For Immediate Release
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April 25, 2005
For Further Information Contact: (609) 386-2400
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Craig W. Yates, President
Channing L. Smith, Vice President and Chief Financial Officer
FMS FINANCIAL REPORTS CORRECTED 1st QUARTER EARNINGS
Burlington, New Jersey, (April 25, 2005) - FMS Financial Corporation, (NASDAQ
Symbol: "FMCO") is reporting a correction to its quarterly net income reported
earlier today in the Consolidated Statements of Operations for the quarter ended
March 31, 2005. While the first paragraph of the Company's earnings press
release issued today correctly sets forth net income for the quarter ended March
31, 2005, due to a typographical error, the Company's Consolidated Statements of
Operations for the period ended March 31, 2005, released earlier today,
overstated net income for the first quarter by approximately $300,000. This was
due to total expense for purchased services being incorrectly reported at
$397,183 when it should have been reported at $697,183 under "NON-INTEREST
EXPENSE" in the Consolidated Statement of Operations. Therefore, corrected net
income and diluted earnings per share totaled $1,701,234 or $.26, respectively.
The attached Consolidated Statement of Operations for the quarter ended March
31, 2005, has been corrected for this typographical error.
FMS FINANCIAL CORPORATION AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF OPERATIONS
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Three Months ended
March 31,
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2005 2004
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INTEREST INCOME: (Unaudited)
Interest income on:
Loans $ 6,188,264 $ 6,051,776
Mortgage-backed securities 3,726,015 3,940,565
Investments 4,088,509 3,648,937
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Total interest income 14,002,788 13,641,278
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INTEREST EXPENSE:
Interest expense on:
Deposits 2,403,790 1,780,209
Borrowings 2,154,778 2,354,914
Long-term debt 408,499 303,798
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Total interest expense 4,967,067 4,438,921
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NET INTEREST INCOME 9,035,721 9,202,357
PROVISION FOR LOAN LOSSES 90,000 75,000
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NET INTEREST INCOME AFTER PROVISION
FOR LOAN LOSSES 8,945,721 9,127,357
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NON-INTEREST INCOME:
Loan service charges and other fees 17,180 29,244
Gain on sale of investment securities 0 100,056
Real estate owned operations, net 0 (1,263)
Service charges on accounts 1,268,002 1,204,240
Other income 36,882 29,136
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Total non-interest income 1,322,064 1,361,413
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NON-INTEREST EXPENSE:
Salaries and employee benefits 4,376,028 4,125,632
Occupancy and equipment 1,436,536 1,379,656
Purchased services 697,183 696,722
Federal deposit insurance premiums 32,139 32,265
Professional fees 187,250 165,783
Advertising 108,818 111,963
Amortization of core deposit intangible 179,052 179,052
Other 365,134 337,184
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Total non-interest expenses 7,382,140 7,028,257
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INCOME BEFORE INCOME TAXES 2,885,645 3,460,513
INCOME TAXES 1,184,411 1,382,626
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NET INCOME $ 1,701,234 $ 2,077,887
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BASIC EARNINGS PER COMMON SHARE $ 0.26 $ 0.32
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DILUTED EARNINGS PER COMMON SHARE $ 0.26 $ 0.32
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Dividends declared per common share $ 0.03 $ 0.03
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Weighted average common shares outstanding 6,502,223 6,486,325
Potential dilutive effect of the exercise of stock options 38,668 41,033
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Adjusted weighted average common shares outstanding 6,540,891 6,527,358
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