EXHIBIT 99
Codorus Valley Bancorp, Inc. Press Release
dated January 20, 2004
PRESS RELEASE -- CODORUS VALLEY BANCORP, INC.
CASH DIVIDEND DECLARATION
AND FINANCIAL HIGHLIGHTS
On January 13, 2004, the board of directors of Codorus Valley Bancorp, Inc.
(Nasdaq: CVLY) declared a regular quarterly cash dividend of $.125 (12.5 cents)
per share, payable on or before February 10, 2004, to shareholders of record
January 27, 2004.
Codorus Valley Bancorp, Inc. earned $3,432,000 or $1.20 per diluted share for
the full year 2003, compared to $3,101,000 or $1.09 per diluted share for 2002.
The $331,000 or approximately 11 percent increase in net income was primarily
the result of increases in net interest income and noninterest income, which
more than offset increases in noninterest expense and federal income tax.
Current period net interest income increased $1,299,000 or 11 percent over the
same period in 2002 due primarily to lower funding costs (rate driven).
Noninterest income, which included gains from the sale of mortgages and
securities, increased $846,000 or 24 percent over 2002 due primarily to income
from an acquired insurance agency and service charges on deposit accounts.
Noninterest expense increased $1,282,000 or 12 percent over 2002 due primarily
to expansion, resulting from the acquisition of an insurance agency in September
2002 and the addition of a full service financial center in December 2002.
During 2003, management engaged a consulting firm to conduct a company wide
performance evaluation, to include staffing and work processes. Acting upon the
consultant's recommendations, management realigned staffing to move toward
industry standards and improved operating efficiency. These benefits, on an
annualized basis, far exceeded the one time consultant's fee. Current period
federal income tax increased $494,000 over 2002 due to an increase in pretax
earnings and a decrease in tax credits.
Total assets were approximately $373 million on December 31, 2003, an increase
of $23 million or 6.5 percent above December 31, 2002. Asset growth occurred
primarily in consumer and business loans, which were funded by core deposits and
borrowings. Additional financial information is provided in the financial
highlights section of this Press Release.
Codorus Valley Bancorp, Inc. is a financial services holding company
headquartered at Codorus Valley Corporate Center, 105 Leader Heights Road, York,
PA. Codorus Valley operates primarily through its financial services subsidiary,
PeoplesBank, A Codorus Valley Company. PeoplesBank provides a full range of
business and consumer banking services through eleven financial centers
throughout York County. It also offers mortgage banking, investment, insurance,
trust and real estate settlement services. Additional information is available
on the bank's website -- www.peoplesbanknet.com.
Management of Codorus Valley Bancorp, Inc. has made forward-looking statements
in this Press Release. These forward-looking statements are subject to risks and
uncertainties. Forward-looking statements include information concerning
possible or assumed future results of operations of the corporation and its
subsidiaries. When words such as "believes," "expects," "anticipates" or similar
expressions occur in this Press Release, management is making forward-looking
statements. Note that many factors could affect the future financial results of
the corporation and its subsidiaries, both individually and collectively, and
could cause those results to differ materially from those expressed in the
forward-looking statements contained in this Press Release.
Questions or comments regarding this Press Release should be directed to
Larry J. Miller, President & CEO, Codorus Valley Bancorp, Inc. by telephone
at 717-747-1500 or 800-646-1970; or by e-mail at lmiller@peoplesbanknet.com.
January 20, 2004
York, Pennsylvania
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CODORUS VALLEY BANCORP, INC.
Financial Highlights
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(in thousands of dollars, except per share data)
Three months ended Year ended
December 31, December 31,
2003 2002 2003 2002
------- ------- ------- -------
Net interest income $ 3,232 $ 3,170 $13,066 $11,767
Provision for loan losses 75 445 553 515
Noninterest income 891 733 3,407 2,583
Gain on sale of securities 0 0 266 179
Gain on sale of mortgages 70 312 707 772
Noninterest expense 3,148 2,977 12,290 11,008
Federal income tax 235 110 1,171 677
------- ------- ------- -------
Net income $ 735 $ 683 $ 3,432 $ 3,101
======= ======= ======= =======
Net income per share (diluted) $ 0.25 $ 0.24 $ 1.20 $ 1.09
Cash dividends per share $ 0.120 $ 0.114 $ 0.468 $ 0.446
Stock dividends (paid in June) 5% 5%
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (UNAUDITED)
(in thousands of dollars, except per share data)
December 31,
2003 2002
----------- -----------
Cash & short term investments $ 12,408 $ 11,120
Investment securities 74,069 79,723
Loans 262,363 238,546
Allowance for loan losses (1,694) (1,515)
Other assets 25,401 22,023
----------- -----------
Total assets $ 372,547 $ 349,897
=========== ===========
Deposits $ 304,282 $ 292,627
Borrowed funds 31,234 23,253
Other liabilities 3,242 1,794
Stockholders' equity 33,789 32,223
----------- -----------
Total liabilities & stockholders' equity $ 372,547 $ 349,897
=========== ===========
Shares outstanding 2,837,634 2,831,887
Book value per share $ 11.91 $ 11.38
Market value per share $ 20.90 $ 14.50
Return on average assets (ytd) 0.96% 0.91%
Return on average equity (ytd) 10.33% 10.08%
Capital leverage ratio 9.15% 8.93%
Nonperforming assets ratio 0.72% 2.55%
Note: Shares outstanding and per share amounts were adjusted for stock
dividends.
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