Exhibit 99
YARDVILLE NATIONAL BANCORP
Press Release
FOR IMMEDIATE RELEASE
For further information, contact:
Stephen F. Carman, EVP & CFO
(609) 631-6222 or consult "Investor
Relations" on YNB's website:
www.ynb.com
YNB REPORTS FIRST QUARTER EARNINGS
HAMILTON, N.J., April 22, 2003 -- Yardville National Bancorp (Nasdaq: YANB)
today announced results for the first quarter ended March 31, 2003. For the
quarter, YNB's net income declined modestly by $139,000 or 4.0% to $3.4 million
compared with $3.5 million earned in the first quarter of 2002.
Net interest income, the largest component of YNB's earnings, increased
year-to-year by $1.7 million to $12.3 million from $10.6 million at March 31,
2002. This increase was offset by an increase in non-interest expenses as YNB
continued to implement its retail strategy and also by a decrease in net
securities gains. Net securities gains for the first quarter of 2003 were
$151,000 as compared to $643,000 in the first quarter of 2002.
Diluted earnings per share decreased 25.6 percent to $0.32 compared to $0.43
earned in the same period in 2002. The decrease in earnings per share reflects
the higher average shares outstanding from the public common stock offering
completed in December 2002 and, to a lesser extent, the decrease in net income.
YNB sold 2.3 million shares and raised $34.3 million in net new capital from the
recently completed common stock offering.
"We experienced year-to-year growth of 15.8 percent in net interest income in
the first quarter of 2003," noted YNB Chief Executive Officer and President
Patrick M. Ryan. "Low interest rates, however, have delayed the goal of
improving the net interest margin. While the uncertain economic climate and its
impact on interest rates presents financial challenges in 2003, we believe the
steps we are taking to expand our retail franchise will ultimately yield many
benefits, including a lower cost of funds," he explained.
YNB continued to experience strong loan and deposit growth in the first quarter
of 2003. Commercial loan growth remains a strong driver of YNB's earnings. At
March 31, 2003, YNB's total loans increased 18.5 percent over the same date a
year ago, reaching $1.25 billion, compared with a total of $1.05 billion at the
end of the first quarter of 2002. YNB has worked diligently to sustain asset
quality. Nonperforming assets for the comparative period decreased 4.6 percent
to $7.4 million from $7.8 million at March 31, 2002, and nonperforming assets as
a percent of total assets also decreased to 0.32 percent at March 31, 2003,
compared to 0.39 percent at the same date a year ago. The soft economy has had
an effect, however, as YNB's net charge offs grew to $860,000 for the quarter
ended March 31, 2003 compared with just $46,000 for the same period a year ago.
In recognition that uncertainties in the regional economy may persist, which
could result in higher levels of nonperforming assets and charge offs, YNB's
allowance for loan losses totaled $16.6 million, or 1.33 percent of total loans,
covering 297.1 percent of total nonperforming loans, at March 31, 2003.
YNB's ongoing growth in loans continued to be primarily funded by an increasing
deposit base. Total deposits at March 31, 2003 rose to $1.34 billion, a 17.8
percent increase over total deposits of $1.14 billion at March 31, 2002. The
growth in YNB's deposit base was primarily in interest bearing demand and money
market deposits. In addition, in the first quarter of 2003, YNB's "Simply Better
Checking" product, introduced in the new markets of Hunterdon, Middlesex and
Somerset Counties, attracted $25.4 million in deposits.
YNB Chairman Jay Destribats noted, "Continued growth in deposits will be
supported by YNB's new retail marketing campaign, 'Banking on a More Personal
Level'. The campaign will feature advertising on billboards and regional
advertising in national media as well as local newspapers."
YNB plans to open its first branch in Somerville, Somerset County, NJ in May.
"We are continuing our expansion northward," stated Mr. Ryan. "At the same time,
we remain focused on further development of our strong core market in Mercer
County. Our goal is to further develop YNB's earnings power and increase the
value of our retail franchise," concluded Mr. Ryan.
YNB continues to maintain a solid capital structure to fund future growth. At
March 31, 2003, the institution's Tier 1 and risk-based capital ratios exceeded
those required by regulatory guidelines to be considered well-capitalized. The
quarterly cash dividend was increased 4.5% to $0.115 in January, marking the
37th consecutive quarter YNB has paid a cash dividend. In addition, YNB redeemed
$11.5 million of 9.25% Trust Preferred Securities on March 31, 2003 with a
portion of the proceeds of the new floating rate trust preferred offering
completed on February 19, 2003. This transaction is expected to help reduce
interest expense in 2003.
As of March 31, 2003, YNB had $2.29 billion in assets, with nineteen branches
serving individuals and businesses in Mercer, Hunterdon, Burlington and
Middlesex Counties in New Jersey, and Bucks County, Pennsylvania. Located in the
corridor between New York City and Philadelphia, YNB offers a broad range of
lending, deposit and other financial products and services with an emphasis on
commercial real estate and commercial and industrial lending.
Note Regarding Forward-Looking Statements
This press release and other statements made from time to time by our management
contain express and implied statements relating to our future financial
condition, results of operations, plans, objectives, performance, and business,
which are considered forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. These may include statements
that relate to, among other things, profitability, liquidity, loan loss reserve
adequacy, plans for growth, interest rate sensitivity, market risk, regulatory
compliance, and financial and other goals. Actual results may differ materially
from those expected or implied as a result of certain risks and uncertainties,
including, but not limited to, the results of our efforts to implement our
retail strategy, adverse changes in our loan portfolio and the resulting credit
risk-related losses and expenses, interest rate fluctuations and other economic
conditions, our ability to attract core deposits, continued relationships with
major customers, competition in product offerings and product pricing, adverse
changes in the economy that could increase credit-related losses and expenses,
compliance with laws, regulatory requirements and Nasdaq standards, other risks
and uncertainties detailed from time to time in our filings with the SEC, as
well as other risks and uncertainties detailed from time to time in statements
made by our management.
L.G. Zangani, LLC provides financial public relations service to the Company. As
such, L.G. Zangani, LLC and/or its officers, agents and employees, receives
remuneration for public relations and/or other services performed for the
Company. This remuneration may take the form of cash, capital stock in the
Company, or warrants and/or options to purchase stock in the Company.
Yardville National Bancorp
Summary of Financial Information
(Unaudited)
Three Months Ended
March 31,
- --------------------------------------------------------------------------------------------------------------------
(in thousands, except per share amounts) 2003 2002
- --------------------------------------------------------------------------------------------------------------------
Stock Information:
Weighted average shares outstanding:
Basic 10,397 8,012
Diluted 10,565 8,092
Shares outstanding end of period 10,399 8,012
Earnings per share:
Basic $ 0.32 $ 0.44
Diluted 0.32 0.43
Dividends paid per share 0.115 0.11
Book value per share 14.09 11.55
Closing price per share 17.01 13.45
Closing price to book 120.72% 116.45%
Key Ratios:
Return on average assets 0.59% 0.71%
Return on average stockholders' equity 9.18 14.72
Net interest margin (tax equivalent) 2.31 2.30
Equity-to-assets at period end 6.40 4.66
Tier 1 leverage ratio (1) 7.77 6.45
Asset Quality Data:
Net loan charge-offs $ 860 $ 46
Nonperforming assets as a percentage of total assets 0.32% 0.39%
Allowance for loan losses at period end as a percent of:
Total loans 1.33 1.34
Nonperforming loans 297.11 257.39
Nonperforming assets at period end:
Nonperforming loans $ 5,574 $ 5,457
Other real estate 1,848 2,322
-------------- -------------
Total nonperforming assets $ 7,422 $ 7,779
============== =============
(1) Tier 1 leverage ratio is Tier 1 capital to adjusted average assets
Yardville National Bancorp and Subsidiaries
Consolidated Statements of Income
(Unaudited)
Three Months Ended
March 31,
- -----------------------------------------------------------------------------------------------------
(in thousands, except per share amounts) 2003 2002
- -----------------------------------------------------------------------------------------------------
INTEREST INCOME:
Interest and fees on loans $ 20,054 $ 17,569
Interest on deposits with banks 7 16
Interest on securities available for sale 8,807 10,160
Interest on investment securities:
Taxable 58 263
Exempt from Federal income tax 631 582
Interest on Federal funds sold 211 302
- -----------------------------------------------------------------------------------------------------
Total Interest Income 29,768 28,892
- -----------------------------------------------------------------------------------------------------
INTEREST EXPENSE:
Interest on savings account deposits 2,640 2,784
Interest on certificates of deposit of $100,000 or more 1,058 1,385
Interest on other time deposits 3,853 4,633
Interest on borrowed funds 9,034 8,667
Interest on trust preferred securities 854 775
- -----------------------------------------------------------------------------------------------------
Total Interest Expense 17,439 18,244
- -----------------------------------------------------------------------------------------------------
Net Interest Income 12,329 10,648
Less provision for loan losses 600 550
- -----------------------------------------------------------------------------------------------------
Net Interest Income After Provision for Loan Losses 11,729 10,098
- -----------------------------------------------------------------------------------------------------
NON-INTEREST INCOME:
Service charges on deposit accounts 547 516
Securities gains, net 151 643
Bank owned life insurance 509 411
Other non-interest income 365 332
- -----------------------------------------------------------------------------------------------------
Total Non-Interest Income 1,572 1,902
- -----------------------------------------------------------------------------------------------------
NON-INTEREST EXPENSE:
Salaries and employee benefits 5,017 4,242
Occupancy expense, net 1,026 817
Equipment expense 690 544
Other non-interest expense 1,914 1,596
- -----------------------------------------------------------------------------------------------------
Total Non-Interest Expense 8,647 7,199
- -----------------------------------------------------------------------------------------------------
Income before income tax expense 4,654 4,801
Income tax expense 1,298 1,306
- -----------------------------------------------------------------------------------------------------
Net Income $ 3,356 $ 3,495
- -----------------------------------------------------------------------------------------------------
EARNINGS PER SHARE:
Basic $ 0.32 $ 0.44
Diluted 0.32 0.43
- -----------------------------------------------------------------------------------------------------
Weighted average shares outstanding:
Basic 10,397 8,012
Diluted 10,565 8,092
- -----------------------------------------------------------------------------------------------------
Yardville National Bancorp and Subsidiaries
Consolidated Statements of Condition
(Unaudited)
March 31, Dec. 31,
- ---------------------------------------------------------------------------------------------
(in thousands) 2003 2002 2002
- ---------------------------------------------------------------------------------------------
Assets:
Cash and due from banks $ 31,592 $ 21,281 $ 28,608
Federal funds sold 74,060 77,960 72,485
- ---------------------------------------------------------------------------------------------
Cash and Cash Equivalents 105,652 99,241 101,093
- ---------------------------------------------------------------------------------------------
Interest bearing deposits with banks 872 3,037 2,501
Securities available for sale 813,775 711,751 820,665
Investment securities 60,551 65,414 54,690
Loans 1,245,661 1,051,496 1,195,143
Less: Allowance for loan losses (16,561) (14,046) (16,821)
- ---------------------------------------------------------------------------------------------
Loans, net 1,229,100 1,037,450 1,178,322
Bank premises and equipment, net 12,118 11,115 12,208
Other real estate 1,848 2,322 1,048
Bank owned life insurance 41,340 32,141 40,850
Other assets 23,373 24,737 20,081
- ---------------------------------------------------------------------------------------------
Total Assets $ 2,288,629 $ 1,987,208 $ 2,231,458
- ---------------------------------------------------------------------------------------------
Liabilities and Stockholders' Equity:
Deposits
Non-interest bearing $ 137,836 $ 114,129 $ 126,183
Interest bearing 1,201,266 1,022,436 1,146,103
- ---------------------------------------------------------------------------------------------
Total Deposits 1,339,102 1,136,565 1,272,286
- ---------------------------------------------------------------------------------------------
Borrowed funds
Securities sold under agreements to repurchase 10,000 10,000 10,000
Federal Home Loan Bank advances 736,000 695,006 746,000
Obligation for Employee Stock Ownership
Plan (ESOP) 300 700 400
Other 660 1,306 1,311
- ---------------------------------------------------------------------------------------------
Total Borrowed Funds 746,960 707,012 757,711
- ---------------------------------------------------------------------------------------------
Trust preferred securities 36,000 32,500 32,500
Other liabilities 20,081 18,614 23,022
- ---------------------------------------------------------------------------------------------
Total Liabilities $ 2,142,143 $ 1,894,691 $ 2,085,519
- ---------------------------------------------------------------------------------------------
Stockholders' equity:
Common stock: no par value 89,377 54,337 89,297
Surplus 2,205 2,205 2,205
Undivided profits 52,793 42,785 50,633
Treasury stock, at cost (3,154) (3,030) (3,154)
Unallocated ESOP shares (300) (700) (400)
Accumulated other comprehensive income (loss) 5,565 (3,080) 7,358
- ---------------------------------------------------------------------------------------------
Total Stockholders' Equity 146,486 92,517 145,939
- ---------------------------------------------------------------------------------------------
Total Liabilities and Stockholders' Equity $ 2,288,629 $ 1,987,208 $ 2,231,458
- ---------------------------------------------------------------------------------------------
Financial Summary
Average Balances, Yields and Costs
(Unaudited)
Three Months Ended
March 31, 2003
- --------------------------------------------------------------------------------------------------------------------
Average
Average Yield/
(in thousands) Balance Interest Cost
- --------------------------------------------------------------------------------------------------------------------
INTEREST EARNING ASSETS:
Deposits with other banks $ 1,395 $ 7 2.01%
Federal funds sold 74,602 211 1.13
Securities 900,750 9,496 4.22
Loans (1) 1,216,904 20,054 6.59
- --------------------------------------------------------------------------------------------------------------------
Total interest earning assets $ 2,193,651 $ 29,768 5.43%
- --------------------------------------------------------------------------------------------------------------------
NON-INTEREST EARNING ASSETS:
Cash and due from banks $ 23,590
Allowance for loan losses (16,480)
Premises and equipment, net 12,153
Other assets 62,077
- --------------------------------------------------------------------------------------------------------------------
Total non-interest earning assets 81,340
- --------------------------------------------------------------------------------------------------------------------
Total assets $ 2,274,991
- --------------------------------------------------------------------------------------------------------------------
INTEREST BEARING LIABILITIES:
Deposits:
Savings, money markets and interest bearing demand $ 571,627 $ 2,640 1.85%
Certificates of deposit of $100,000 or more 137,659 1,058 3.07
Other time deposits 465,956 3,853 3.31
- --------------------------------------------------------------------------------------------------------------------
Total interest bearing deposits 1,175,242 7,551 2.57
Borrowed funds 757,238 9,034 4.77
Trust preferred securities 38,269 854 8.93
- --------------------------------------------------------------------------------------------------------------------
Total interest bearing liabilities $ 1,970,749 $ 17,439 3.54%
- --------------------------------------------------------------------------------------------------------------------
NON-INTEREST BEARING LIABILITIES:
Demand deposits $ 120,343
Other liabilities 37,640
Stockholders' equity 146,259
- --------------------------------------------------------------------------------------------------------------------
Total non-interest bearing liabilities and
stockholders' equity $ 304,242
- --------------------------------------------------------------------------------------------------------------------
Total liabilities and stockholders' equity $ 2,274,991
- --------------------------------------------------------------------------------------------------------------------
Interest rate spread (2) 1.89%
- --------------------------------------------------------------------------------------------------------------------
Net interest income and margin (3) $ 12,329 2.25%
- --------------------------------------------------------------------------------------------------------------------
Net interest income and margin
(tax equivalent basis)(4) $ 12,665 2.31%
- --------------------------------------------------------------------------------------------------------------------
(1) Loan origination fees are considered an adjustment to interest income. For
the purpose of calculating loan yields, average loan balances include
nonaccrual loans with no related interest income.
(2) The interest rate spread is the difference between the average yield on
interest earning assets and the average rate paid on interest bearing
liabilities.
(3) The net interest margin is equal to net interest income divided by average
interest earning assets.
(4) In order to present pre-tax income and resultant yields on tax exempt
investments and loans comparable to those on taxable investments and loans,
a tax equivalent adjustment is made to interest income. The tax equivalent
adjustment has been computed using a Federal income tax rate of 34% and has
increased interest income by $336,000 and $327,000 for the three month
periods ended March 31, 2003 and 2002, respectively.
Financial Summary
Average Balances, Yields and Costs
(Unaudited)
Three Months Ended
March 31, 2002
- --------------------------------------------------------------------------------------------------------------------
Average
Average Yield/
(in thousands) Balance Interest Cost
- --------------------------------------------------------------------------------------------------------------------
INTEREST EARNING ASSETS:
Deposits with other banks $ 2,637 $ 16 2.43%
Federal funds sold 73,934 302 1.63
Securities 810,717 11,005 5.43
Loans (1) 1,018,134 17,569 6.90
- --------------------------------------------------------------------------------------------------------------------
Total interest earning assets $ 1,905,422 $ 28,892 6.07%
- --------------------------------------------------------------------------------------------------------------------
NON-INTEREST EARNING ASSETS:
Cash and due from banks $ 22,239
Allowance for loan losses (13,535)
Premises and equipment, net 11,034
Other assets 50,687
- --------------------------------------------------------------------------------------------------------------------
Total non-interest earning assets 70,425
- --------------------------------------------------------------------------------------------------------------------
Total assets $ 1,975,847
- --------------------------------------------------------------------------------------------------------------------
INTEREST BEARING LIABILITIES:
Deposits:
Savings, money markets and interest bearing demand $ 424,771 $ 2,784 2.62%
Certificates of deposit of $100,000 or more 148,889 1,385 3.72
Other time deposits 442,876 4,633 4.18
- --------------------------------------------------------------------------------------------------------------------
Total interest bearing deposits 1,016,536 8,802 3.46
Borrowed funds 708,516 8,667 4.89
Trust preferred securities 32,500 775 9.54
- --------------------------------------------------------------------------------------------------------------------
Total interest bearing liabilities $ 1,757,552 $ 18,244 4.15%
- --------------------------------------------------------------------------------------------------------------------
NON-INTEREST BEARING LIABILITIES:
Demand deposits $ 109,574
Other liabilities 13,773
Stockholders' equity 94,948
- --------------------------------------------------------------------------------------------------------------------
Total non-interest bearing liabilities and
stockholders' equity $ 218,295
- --------------------------------------------------------------------------------------------------------------------
Total liabilities and stockholders' equity $ 1,975,847
- --------------------------------------------------------------------------------------------------------------------
Interest rate spread (2) 1.92%
- --------------------------------------------------------------------------------------------------------------------
Net interest income and margin (3) $ 10,648 2.24%
- --------------------------------------------------------------------------------------------------------------------
Net interest income and margin
(tax equivalent basis)(4) $ 10,975 2.30%
- --------------------------------------------------------------------------------------------------------------------
(1) Loan origination fees are considered an adjustment to interest income. For
the purpose of calculating loan yields, average loan balances include
nonaccrual loans with no related interest income.
(2) The interest rate spread is the difference between the average yield on
interest earning assets and the average rate paid on interest bearing
liabilities.
(3) The net interest margin is equal to net interest income divided by average
interest earning assets.
(4) In order to present pre-tax income and resultant yields on tax exempt
investments and loans comparable to those on taxable investments and loans,
a tax equivalent adjustment is made to interest income. The tax equivalent
adjustment has been computed using a Federal income tax rate of 34% and has
increased interest income by $336,000 and $327,000 for the three month
periods ended March 31, 2003 and 2002, respectively.