EXHIBIT 99.1
QUARTERLY EARNINGS
ANNOUNCED BY
CHESTER VALLEY BANCORP INC.
FOR IMMEDIATE RELEASE
WEDNESDAY, APRIL 16, 2003
CONTACT: DONNA M. COUGHEY
PRESIDENT & CEO
(610) 269-9700 ext. 3085
Downingtown - Chester Valley Bancorp Inc. announces that the Company posted
quarterly and year to date earnings of $1.48 million, or $0.31 per share
(diluted) and $4.37 million or $0.93 per share (diluted) for the three- and
nine-month periods ended March 31, 2003. This compared to $1.48 million or $0.32
per share (diluted) and $4.42 million or $0.97 per share (diluted) for the same
three- and nine-month periods in 2002.
Commercial loans increased $22.43 million or 13.5% to $188.83 million for the
nine-month period. Loan quality for the Company remained stable as
non-performing loans represented only .16% of total assets at March 31, 2003.
The decrease in the provision for loan losses of $217 thousand and $253 thousand
for the three- and nine-month periods ended March 31, 2003 when compared to the
same periods in 2002 is reflective of the $20.64 million or 5.5% in runoff of
residential mortgage loans and improved loan quality.
For the nine-month period ended March 31, 2003, we increased core deposits by
$48.08 million or 25.0% while simultaneously decreasing our higher-cost
certificates of deposit by $17.20 million. In addition, we reduced costly
municipal certificates of deposit by $2.61 million. Total assets for Chester
Valley increased 4.0% for the past nine months to $588.40 million at March 31,
2003, from $566.03 million at June 30, 2002.
Non-interest income increased 17.4% to $5.7 million for the nine-months ended
March 31, 2003 over the same nine-month period ending March 31, 2002. The 50
basis point drop in interest rates resulted in a decrease in net interest income
for the nine-month period. Our interest rate spread declined 6 basis points to
3.35% from 3.41% for the nine-month period.
"Our focus has, and will continue to be, increasing core deposits, growing the
commercial loan portfolio and expanding fee income. Commercial loans and core
deposits continue to show strong, healthy growth. Our nine-month fee income from
investment services, loan fees and deposit service charges increased 14.5% to
$4.8 million from $4.2 million at March 2003 and March 2002, respectively. The
current interest rate environment and the slow economy continue to pose
challenges for the financial services industry," stated Donna M. Coughey,
President & CEO.
Chester Valley Bancorp Inc. is the parent company of both First Financial Bank
and Philadelphia Corporation for Investment Services. First Financial's
executive offices are located in Downingtown, Pennsylvania with branches in
Exton, Frazer, Thorndale, Westtown, Airport Village, Brandywine Square, Devon
and Kennett Square. Philadelphia Corporation has offices in Wayne and
Philadelphia.
Chester Valley Bancorp stock is traded on the NASDAQ market under the symbol
"CVAL".
CHESTER VALLEY BANCORP INC. AND SUBSIDIARIES
SELECTED FINANCIAL DATA
(Dollars in Thousands Except for Per Share Amounts)
*** CONSOLIDATED OPERATIONS DATA:
THREE MONTHS ENDED NINE MONTHS ENDED
MARCH 31, MARCH 31,
----------------------------- -----------------------------
2003 2002 2003 2002
------------ ------------- ------------- -------------
Total interest income $7,672 $8,327 $24,139 $26,180
Total interest expense 3,292 3,675 10,778 12,724
------------ ------------- ------------- -------------
NET INTEREST INCOME 4,380 4,652 13,361 13,456
Provision for loan losses (68) 149 174 427
------------ ------------- ------------- -------------
NET INTEREST INCOME AFTER PROVISION
FOR LOAN LOSSES 4,448 4,503 13,187 13,029
Total other income 1,826 1,560 5,675 4,833
Other operating expenses 4,385 4,128 13,102 12,012
------------ ------------- ------------- -------------
Income before income taxes 1,889 1,935 5,760 5,850
Income tax expense 408 456 1,391 1,432
------------ ------------- ------------- -------------
NET INCOME $1,481 $1,479 $4,369 $4,418
============ ============= ============= =============
EARNINGS PER COMMON SHARE (1)
Basic $0.33 $0.33 $0.96 $0.97
============ ============= ============= =============
Diluted $0.31 $0.32 $0.93 $0.97
============ ============= ============= =============
*** CONSOLIDATED FINANCIAL CONDITION DATA:
MARCH 31, JUNE 30,
2003 2002 % CHANGE
------------- ------------- -------------
Total assets $588,404 $566,032 3.95%
Loans and loans held for sale, net 367,926 363,702 1.16%
Deposits 411,784 385,980 6.69%
Total stockholders' equity 47,490 44,171 7.51%
*** OTHER SELECTED DATA:
THREE MONTHS ENDED NINE MONTHS ENDED
MARCH 31, MARCH 31,
----------------------------- -----------------------------
2003 2002 2003 2002
------------ ------------- ------------- -------------
Average interest rate spread (2) 3.28% 3.50% 3.35% 3.41%
Net yield on average interest-earning assets (2) 3.45% 3.83% 3.43% 3.64%
Ratio of average interest-earning
assets to average interest-bearing liabilities 1.03 X 1.08 x 1.03 X 1.07 x
Non-performing assets to total assets 0.16% 0.21% 0.16% 0.21%
Book value per common share (1) $10.44 $9.33 $10.44 $9.33
Closing price of common stock at end of
period (1) $22.61 $14.67 $22.61 $14.67
Number of full-service offices at end of period 9 9 9 9
(1) Per share amounts have been restated to reflect the effects of the 5% stock
dividend paid in September 2002.
(2) Percentages are presented on a taxable equivalent basis.