Exhibit 99.1
[LOGO OF SUSQUEHANNA BANCSHARES, INC.]
P.O. Box 1000
26 North Cedar Street
Lititz, PA 17543-1000
NEWS
FOR ADDITIONAL INFORMATION CONTACT:
Alison van Harskamp, Vice President and Director of Communications
Susquehanna Bancshares, Inc. (717) 625 6260, communications@susqbanc.com
SUSQUEHANNA BANCSHARES, INC. ANNOUNCES
RECORD 3RD QUARTER RESULTS
FOR IMMEDIATE RELEASE: LITITZ, PA, October 22, 2002: Susquehanna Bancshares,
Inc., (Susquehanna) (Nasdaq: SUSQ - news) today announced net income for the
third quarter of 2002 rose 11% to $15.9 million from $14.3 million for the third
quarter of 2001. Third quarter diluted earnings per share increased 11%, rising
to $0.40 per share in the third quarter of 2002 compared to $0.36 per share in
the third quarter of 2001. Earnings were in line with the company's forecast of
$0.39 - $0.41 per share.
As a result of new rules under generally accepted accounting principles adopted
in 2001, goodwill amortization was discontinued in 2002. Had the new rules been
in effect in 2001, diluted earnings per share would have been $0.38 for the
third quarter of 2001.
Third Quarter Highlights
.. Deposits and loans trended upward for the 5th consecutive quarter as
Susquehanna pursued its strategy of growing its core banking business
through implementation of aggressive sales programs on both the retail and
commercial sides. Deposits at September 30, 2002, increased 13.7% over
September 30, 2001, rising from $3.3 billion to $3.8 billion year over
year. Loans and leases originated through bank affiliates rose to $3.7
billion at September 30, 2002, an increase of 13.4% over September 30, 2001
.. Non-interest income for the quarter was $23.7 million, an increase of 14%
compared to $20.8 million in the third quarter of 2001, with core banking
contributing 52% of the total and non-bank affiliates 48%. Service charges
on deposit accounts contributed the majority of core banking fee income,
increasing 21% over the third quarter of 2001. Non-interest income
represented 33% of total revenue for the third quarter of 2002.
.. Susquehanna increased its quarterly cash dividend for the 21st consecutive
year on October 16, 2002, with a $0.21 per share fourth quarter dividend
payable November 18, 2002, to shareholders of record October 29, 2002. This
reflects an increase of 5% over the $0.20 dividend paid in each of the last
three quarters, and raises the total per share dividend paid in 2002 to
$0.81, a 5% increase over the $0.77 paid in 2001.
.. Asset quality remained strong. Non-performing assets decreased from $23.1
million at September 30, 2001, to $21.9 million at September 30,
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2002, while the coverage ratio (loan loss reserve to nonperforming loans)
increased from 200% to 211% for the same period.
.. Susquehanna completed the merger between its subsidiaries Equity Bank,
Marlton, N.J. and Founders' Bank, Bryn Mawr, Pa. on August 5, 2002. As the
resultant bank, Equity services over 44,000 accounts through 14 offices in
Burlington, Camden and Gloucester counties in New Jersey; and through 3
offices in Chester, Delaware and Montgomery counties, Pennsylvania, which
operate under the name "Founders' Bank, division of Equity Bank". The
merger provides additional banking value and convenience for customers,
including expanded ATM access on both sides of the Delaware River.
.. On September 20, 2002, Susquehanna announced the appointments of Bruce A.
Hepburn and M. Zev Rose to the board of directors. Hepburn, who will serve
on the company's Audit Committee, is currently self-employed as a Certified
Public Accountant in Lititz, Pa. Rose is President of the law firm of
Sherman, Silverstein, Kohl, Rose & Podolsky in Pennsauken, N.J. Both new
members bring extensive business expertise and a long history of
involvement in their respective communities to their board positions, and
will stand for election to a three-year term at Susquehanna's 2003 annual
shareholders meeting.
"I am very pleased that Susquehanna has realized exceptional loan and deposit
growth over the last five quarters, despite the weakness in the economy that
continues beyond the point where most experts predicted recovery," commented
William J. Retuer, chairman, president and chief executive officer. "We have not
weakened our credit standards, and our asset quality remains solid. We remain
very well capitalized, and our shareholders enjoy an above average dividend
yield. All of these are indicators of the kind of stability that many long-term
investors seek in regional bank stocks. At the same time, Susquehanna is not
your "typical" regional bank. We continue to diversify our business lines and
are actively developing synergies between our non-bank affiliates and our core
banks. We believe this model holds great potential for dynamic growth, as well
as allowing us to maintain the financial soundness that has historically been a
key part of our identity.
"Susquehanna's diluted EPS guidance is $0.38 to $0.40 for the fourth quarter of
2002, and diluted EPS guidance for the year 2002 has been revised to $1.54 to
$1.56. Our previous estimate of $1.55 - $1.60 for 2002 assumed an increase in
interest rates during the latter half of 2002. It is now likely that we will not
see rates rise until sometime in 2003."
During the third quarter of 2002, diluted earnings per share were $0.40 compared
to $0.36 per share earned during the third quarter of 2001. Return on assets
("ROA") and return on equity ("ROE") finished at 1.18% and 12.04% respectively,
compared with 1.14% and 11.89%, in the third quarter of 2001.
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Total assets at September 30, 2002, were $5.4 billion compared with $5.0 billion
at September 30, 2001. Consolidated net loans and leases at September 30, 2002,
were $3.8 billion up from $3.5 billion at September 30, 2002, while deposits
were $3.8 billion as of September 30, 2002, up from $3.3 billion as of September
30, 2001. Equity capital was $528 million at September 30, 2002, or $13.33 per
share, compared to $490 million at September 30, 2001, or $12.46 per share.
Net income for the nine months ended September 30, 2002, was $46.3 million an
increase of 13% over net income of $41.0 million for the same period in 2001.
ROA and ROE finished at 1.19% and 12.17%, respectively, for the nine months
ended September 30, 2002, compared with 1.14% and 11.75 % for the same period in
2001. For the nine month period ending September 30, 2002, diluted earnings per
share was $1.16 an increase of 12% over the $1.04 earned in the comparable
period in 2001. Excluding goodwill amortization, diluted earnings per share
would have been $1.10 for the first nine months of 2001.
Consideration of Debt Offering
Susquehanna also announced it is contemplating issuing up to $75 million of
subordinated debt in the 4th quarter of 2002. It is expected that most of the
proceeds from an offering would be used to repay $50 million of maturing
long-term senior indebtedness in 2003, while the remaining proceeds would be
used for general corporate purposes.
It is expected that, if the subordinated notes are issued, they will not be
registered under the Securities Act of 1933 and may not be offered or sold in
the United States absent registration or an applicable exemption from the
registration requirements of the Securities Act of 1933. However, it is
anticipated that after the issuance of the subordinated notes, Susquehanna would
file a registration statement under the Securities Act of 1933 in order to
effect an exchange offer of the unregistered subordinated notes for registered
subordinated notes.
Susquehanna also announced it will broadcast its third quarter results
conference call over the Internet on October 23, 2002, at 11:00 AM Eastern time.
Investors will have the opportunity to listen to the conference call through a
CCBN broadcast on Susquehanna's Web site, located at www.susqbanc.com. In
addition, the broadcast will be available through www.StreetEvents.com on both
the institutional and individual investor center sites. To listen to the live
call, please go to the Web site at least fifteen minutes early to download and
install any necessary audio software. For those who cannot listen to the live
broadcast, a replay will be available shortly after the call.
Susquehanna Bancshares, Inc. is a financial holding company with assets of $5.4
billion operating in multiple states. It provides financial services through its
subsidiaries at 157 locations in the mid-Atlantic region. In addition to eight
commercial banks, Susquehanna operates a trust and investment company, an asset
management company, a property and casualty insurance
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brokerage company, and a vehicle leasing company. Investor information may be
requested on Susquehanna's Web site at www.susqbanc.com.
This press release contains "forward-looking" statements as defined in the
Private Securities Litigation Reform Act of 1995, that are based on
Susquehanna's current expectations, estimates and projections about future
events and financial trends affecting the financial condition of its business.
These statements are not historical facts or guarantees of future performance,
events or results. Such statements involve potential risks and uncertainties,
including changes in interest rates, and adverse changes in the economy or our
results of operations or financial condition. Accordingly, actual results may
differ materially. Susquehanna undertakes no obligation to publicly update or
revise any forward looking statements, whether as a result of new information,
future events or otherwise, including Susquehanna's ability to consummate an
offer and sale of subordinated debt in the fourth quarter, the application of
proceeds from such an offering and our ability to consummate an exchange offer.
# # #
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Susquehanna Bancshares, Inc.
P.O. Box 1000
Lititz, PA 17543
SUSQUEHANNA BANCSHARES, INC.
SUMMARY FINANCIAL INFORMATION
(Dollars in $000, except per share)
Nine Months
----------------
Asset Quality 3Q02 3Q01 2002 2001
------- ------- ------- -------
Net charge-offs (NCO) $ 2,033 $ 1,815 $ 5,290 $ 4,274
Nonaccrual loans & leases 18,684 19,211 18,684 19,211
Restructured loans 0 0 0 0
OREO 3,194 3,860 3,194 3,860
Total nonperforming assets (NPA) 21,878 23,071 21,878 23,071
Loans & leases 90 days past due 10,146 10,531 10,146 10,531
RATIO ANALYSIS
Credit Quality
NCO / Ave. loans & leases 0.21% 0.20% 0.19% 0.16%
NPA / loans & leases & OREO 0.58% 0.65% 0.58% 0.65%
ALLL / Nonperforming loans 211.34% 199.53% 211.34% 199.53%
ALLL / total loans & leases 1.05% 1.09% 1.05% 1.09%
Capital Adequacy
Equity / assets 9.73% 9.71% 9.73% 9.71%
Long-term debt / equity 19.88% 21.44% 19.88% 21.44%
Profitability
Return on average assets 1.18% 1.14% 1.19% 1.14%
Return on average equity 12.04% 11.89% 12.17% 11.75%
Net interest margin 3.93% 3.87% 3.98% 3.91%
Susquehanna Bancshares, Inc.
P.O. Box 1000
Lititz, PA 17543
SUMMARY FINANCIAL INFORMATION
(Dollars in $000, except per share)
Nine Months
------------------------
Balance Sheet (EOP) 3Q02 3Q01 2002 2001
---------- ---------- ---------- ----------
Investments $1,085,816 $1,033,034 $1,085,816 $1,033,034
Loans and leases 3,756,659 3,532,316 3,756,659 3,532,316
Allowance for loan & lease losses (ALLL) 39,487 38,332 39,487 38,332
Total assets 5,425,618 5,045,950 5,425,618 5,045,950
Deposits 3,765,090 3,311,832 3,765,090 3,311,832
Short-term borrowings 273,587 219,268 273,587 219,268
FHLB borrowings 546,869 560,739 546,869 560,739
Vehicle financing 59,463 261,851 59,463 261,851
Long-term debt 105,000 105,000 105,000 105,000
Shareholders' equity 528,058 489,797 528,058 489,797
Stated Book Value per Share 13.33 12.46 13.33 12.46
Tangible Book Value per Share 11.83 11.38 11.83 11.38
Average Balance Sheet
Investments 983,280 992,151 1,002,197 876,534
Loans and leases 3,774,720 3,517,458 3,669,908 3,471,373
Total earning assets 4,830,220 4,585,297 4,745,279 4,434,081
Total assets 5,317,254 4,978,188 5,212,309 4,814,281
Deposits 3,688,795 3,274,521 3,585,034 3,249,127
Short-term borrowings 239,451 226,618 203,538 218,799
FHLB borrowings 551,419 539,487 576,316 406,229
Vehicle financing 78,071 294,937 120,560 311,861
Long-term debt 105,000 100,272 105,000 100,092
Shareholders' equity 522,892 478,176 508,666 467,188
Income Statement
Net interest income 47,187 43,926 139,371 127,375
Loan & lease loss provision 2,372 1,740 7,079 5,419
Other income 23,660 20,796 70,485 62,506
Other expense 45,758 42,054 135,945 124,548
Income before taxes 22,717 20,928 66,832 59,914
Income taxes 6,842 6,593 20,518 18,873
Net income 15,875 14,335 46,314 41,041
Basic earnings per share 0.40 0.36 1.17 1.05
Diluted earnings per share 0.40 0.36 1.16 1.04
Cash dividends paid per share 0.20 0.19 0.60 0.57
Susquehanna Bancshares, Inc.
P.O. Box 1000
Lititz, PA 17543
CONSOLIDATED BALANCE SHEETS
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September 30 December 31 September 30
(Dollars in thousands) 2002 2001 2001
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ASSETS
Cash and due from banks $ 183,538 $ 149,233 $ 107,341
Short-term investments:
Restricted 31,665 41,584 41,251
Unrestricted 19,957 46,981 26,711
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Total short-term investments 51,622 88,565 67,962
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Investment securities available for sale, at fair value 1,082,175 1,019,313 1,031,212
Investment securities held to maturity, at amortized cost 3,641 1,778 1,822
(Fair values of $3,641; $1,778; and $1,822)
Loans and leases, net of unearned income 3,756,659 3,519,498 3,532,316
Less: Allowance for loan and lease losses 39,487 37,698 38,332
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Net loans and leases 3,717,172 3,481,800 3,493,984
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Premises and equipment (net) 59,877 60,063 57,968
Accrued income receivable 20,167 21,268 22,344
Bank-owned life insurance 124,564 120,174 118,530
Goodwill 54,865 43,496 40,402
Intangible assets with finite lives 5,155 5,622 1,755
Other assets 122,842 97,642 102,630
- ---------------------------------------------------------------------------------------------------------------------
Total assets $5,425,618 $5,088,954 $5,045,950
=====================================================================================================================
LIABILITIES
Deposits:
Demand $ 573,494 $ 529,162 $ 484,712
Interest-bearing demand 1,037,214 915,080 809,747
Savings 461,725 435,959 419,526
Time 1,355,002 1,322,494 1,306,859
Time of $100 or more 337,655 281,636 290,988
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Total deposits 3,765,090 3,484,331 3,311,832
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Short-term borrowings 273,587 169,803 219,268
FHLB borrowings 546,869 570,580 560,739
Vehicle financing 59,463 171,462 261,851
Long-term debt 105,000 105,000 105,000
Accrued interest, taxes, and expenses payable 36,184 36,652 50,224
Other liabilities 111,367 57,590 47,239
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Total liabilities 4,897,560 4,595,418 4,556,153
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STOCKHOLDERS' EQUITY
Common stock
Authorized: 100,000,000 ($2.00 par value)
Issued: 39,614,548; 39,398,190; and 39,398,190, respectively 79,229 78,796 78,796
Surplus 62,164 57,986 57,769
Retained earnings 368,158 345,508 338,695
Accumulated other comprehensive income,
net of taxes of $9,811; $6,928; and $8,510, respectively 18,507 12,009 15,805
Less: Treasury stock, (none; 54,115; and 89,900
common shares at cost, respectively) 0 763 1,268
- ---------------------------------------------------------------------------------------------------------------------
Total stockholders' equity 528,058 493,536 489,797
- ---------------------------------------------------------------------------------------------------------------------
Total liabilities and stockholders' equity $5,425,618 $5,088,954 $5,045,950
=====================================================================================================================
The accompanying notes are an integral part of these financial statements.
Susquehanna Bancshares, Inc.
P.O. Box 1000
Lititz, PA 17543
CONSOLIDATED STATEMENTS OF INCOME
- ------------------------------------------------------------------------------------------------- -----------------------
Three Months Ended Nine Months Ended
September 30 September 30
- ------------------------------------------------------------------------------------------------- -----------------------
(Dollars in thousands, except per share) 2002 2001 2002 2001
- ------------------------------------------------------------------------------------------------- -----------------------
INTEREST INCOME
Interest and fees on loans and leases $65,622 $71,111 $195,646 $214,798
Interest on investment securities: Taxable 12,572 14,016 39,688 37,612
Tax-exempt 587 801 1,909 2,550
Interest on short-term investments 347 755 1,047 2,949
- ------------------------------------------------------------------------------------------------- -----------------------
Total interest income 79,128 86,683 238,290 257,909
- ------------------------------------------------------------------------------------------------- -----------------------
INTEREST EXPENSE
Interest on deposits:
Interest-bearing demand 3,404 4,215 9,312 14,862
Savings 1,081 1,503 3,261 5,096
Time 16,293 20,885 50,445 64,637
Interest on short-term borrowings 945 1,932 2,417 6,994
Interest on FHLB borrowings 7,126 7,002 21,805 16,359
Interest on vehicle financing 1,090 5,269 5,684 16,751
Interest on long-term debt 2,002 1,951 5,995 5,835
- ------------------------------------------------------------------------------------------------- -----------------------
Total interest expense 31,941 42,757 98,919 130,534
- ------------------------------------------------------------------------------------------------- -----------------------
Net interest income 47,187 43,926 139,371 127,375
Provision for loan and lease losses 2,372 1,740 7,079 5,419
- ------------------------------------------------------------------------------------------------- -----------------------
Net interest income after provision for loan and lease losses 44,815 42,186 132,292 121,956
- ------------------------------------------------------------------------------------------------- -----------------------
OTHER INCOME
Service charges on deposit accounts 4,288 3,538 12,338 9,809
Vehicle origination and servicing fees 5,609 6,804 19,505 18,856
Merchant credit card fees 1,861 1,764 8,328 7,883
Asset management fees 2,353 2,513 7,326 6,115
Income from fiduciary-related activities 1,168 1,445 3,666 3,976
Gain on sale of loans and leases 1,490 605 3,629 3,562
Income from bank-owned life insurance 1,624 1,734 4,972 4,814
Commissions on insurance sales 1,816 0 1,816 0
Other operating income 2,808 2,121 8,117 7,219
Investment security gains/(losses) 643 272 788 272
- ------------------------------------------------------------------------------------------------- -----------------------
Total other income 23,660 20,796 70,485 62,506
- ------------------------------------------------------------------------------------------------- -----------------------
OTHER EXPENSES
Salaries and employee benefits 21,469 18,525 60,880 54,713
Net occupancy expense 3,103 2,805 9,278 8,565
Furniture and equipment expense 2,083 2,155 6,302 6,169
Amortization of intangible assets 157 894 483 2,653
Vehicle residual value expense 1,569 1,164 4,839 3,708
Vehicle delivery and preparation expense 2,541 1,128 6,149 3,456
Merchant credit card servicing expense 1,687 1,662 7,937 7,486
Other operating expenses 13,149 13,721 40,077 37,798
- ------------------------------------------------------------------------------------------------- -----------------------
Total other expenses 45,758 42,054 135,945 124,548
- ------------------------------------------------------------------------------------------------- -----------------------
Income before income taxes 22,717 20,928 66,832 59,914
Provision for income taxes 6,842 6,593 20,518 18,873
- ------------------------------------------------------------------------------------------------- -----------------------
NET INCOME $15,875 $14,335 $ 46,314 $ 41,041
- ------------------------------------------------------------------------------------------------- -----------------------
Per share information:
Basic earnings $ 0.40 $ 0.36 $ 1.17 $ 1.05
Diluted earnings $ 0.40 $ 0.36 $ 1.16 $ 1.04
Cash dividends $ 0.20 $ 0.19 $ 0.60 $ 0.57
Average shares outstanding: Basic 39,610 39,285 39,447 39,244
Diluted 40,030 39,732 39,907 39,555
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The accompanying notes are an integral part of these financial statements.
Susquehanna Bancshares, Inc.
P.O. Box 1000
Lititz, PA 17543
TABLE 1 - DISTRIBUTION OF ASSETS, LIABILITIES AND STOCKHOLDERS' EQUITY
Interest rates and interest differential - taxable equivalent basis
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For the Nine Month Period Ended For the Nine Month Period Ended
September 30, 2002 September 30, 2001
- ------------------------------------------------------------------------------------------- -------------------------------------
Average Average
(Dollars in thousands) Balance Interest Rate (%) Balance Interest Rate (%)
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Assets
Short - term investments $73,174 $1,047 1.91 $86,174 $2,949 4.58
Investment securities:
Taxable 946,872 39,688 5.60 802,805 37,612 6.26
Tax - advantaged 55,325 2,937 7.10 73,729 3,923 7.11
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Total investment securities 1,002,197 42,625 5.69 876,534 41,535 6.34
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Loans and leases, (net):
Taxable 3,622,841 193,831 7.15 3,426,520 212,896 8.31
Tax - advantaged 47,067 2,792 7.93 44,853 2,928 8.73
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Total loans and leases 3,669,908 196,623 7.16 3,471,373 215,824 8.31
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Total interest - earning assets 4,745,279 $240,295 6.77 4,434,081 $260,308 7.85
Allowance for loan and lease losses (39,137) ----------------------- (38,334) ---------------------
Other non - earning assets 506,167 418,534
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Total assets $5,212,309 $4,814,281
- ------------------------------------------------------------ -----------
Liabilities
Deposits:
Interest - bearing demand $954,121 $9,312 1.30 $810,839 $14,862 2.45
Savings 459,483 3,261 0.95 418,338 5,096 1.63
Time 1,635,385 50,445 4.12 1,562,290 64,637 5.53
Short - term borrowings 203,538 2,417 1.59 218,799 6,994 4.27
FHLB borrowings 576,316 21,805 5.06 406,229 16,359 5.38
Vehicle financing 120,560 5,684 6.30 311,861 16,751 7.18
Long - term debt 105,000 5,995 7.63 100,092 5,835 7.79
---------- ---------- ------- ----------- ---------- -------
Total interest - bearing liabilities 4,054,403 $98,919 3.26 3,828,448 $130,534 4.56
Demand deposits 536,045 ----------------------- 457,660 ---------------------
Other liabilities 113,195 60,985
- ------------------------------------------------------------ -----------
Total liabilities 4,703,643 4,347,093
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Equity 508,666 467,188
- ------------------------------------------------------------ -----------
Total liabilities & stockholders' equity $5,212,309 $4,814,281
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Net interest income / yield on
average earning assets $141,376 3.98 $129,774 3.91
----------------------- ---------------------
For purposes of calculating loan yields, the average loan volume includes
non-accrual loans. For purposes of calculating yields on non-taxable interest
income, the taxable equivalent adjustment is made to equate non-taxable interest
on the same baisis as taxable interest. The marginal tax rate is 35%.
Susquehanna Bancshares,Inc
P.O.Box 1000
Lititz, PA 17543
TABLE 1 - DISTRIBUTION OF ASSETS, LIABILITIES AND STOCKHOLDERS' EQUITY
Interest rates and interest differential - taxable equivalent basis
- ------------------------------------------------------------------------------------------------------------------------------------
For the Three Month Period Ended For the Three Month Period Ended
September 30, 2002 September 30, 2001
- ---------------------------------------------------------------------------------- ---------------------------------------------
Average Average
(Dollars in thousands) Balance Interest Rate (%) Balance Interest Rate (%)
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Assets
Short - term investments $ 72,220 $ 347 1.91 $ 75,688 $ 755 3.96
Investment securities:
Taxable 932,696 12,572 5.35 922,342 14,016 6.03
Tax - advantaged 50,584 903 7.08 69,809 1,232 7.00
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Total investment securities 983,280 13,475 5.44 992,151 15,248 6.10
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Loans and leases, (net):
Taxable 3,725,523 65,012 6.92 3,476,768 70,521 8.05
Tax - advantaged 49,197 938 7.56 40,690 908 8.85
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Total loans and leases 3,774,720 65,950 6.93 3,517,458 71,429 8.06
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Total interest - earning assets 4,830,220 $79,772 6.55 4,585,297 $ 87,432 7.56
------------------- ----------------------------
Allowance for loan and lease losses (39,995) (38,900)
Other non - earning assets 527,029 431,791
- -------------------------------------------------------- ------------
Total assets $5,317,254 $ 4,978,188
- -------------------------------------------------------- ------------
Liabilities
Deposits:
Interest - bearing demand $1,003,663 $ 3,404 1.35 $ 806,493 $ 4,215 2.07
Savings 465,947 1,081 0.92 420,369 1,503 1.42
Time 1,669,547 16,293 3.87 1,573,179 20,884 5.27
Short - term borrowings 239,451 945 1.57 226,618 1,932 3.38
FHLB borrowings 551,419 7,126 5.13 539,487 7,002 5.15
Vehicle financing 78,071 1,090 5.54 294,937 5,269 7.09
Long - term debt 105,000 2,002 7.56 100,272 1,951 7.72
----------- -------- ------- ------------ ----------- ----------
Total interest - bearing liabilities 4,113,098 $31,941 3.08 3,961,355 $ 42,756 4.28
------------------- ----------------------------
Demand deposits 549,638 474,480
Other liabilities 131,626 64,177
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Total liabilities 4,794,362 4,500,012
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Equity 522,892 478,176
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Total liabilities & stockholders' equity $5,317,254 $ 4,978,188
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Net interest income / yield on
average earning assets $47,831 3.93 $ 44,676 3.87
------------------- ----------------------------
For purposes of calculating loan yields, the average loan volume includes
non-accrual loans. For purposes of calculating yields on non-taxable interest
income, the taxable equivalent adjustment is made to equate non-taxable interest
on the same baisis as taxable interest. The marginal tax rate is 35%.
Subsquehanna Bancshares,Inc.
P.O. Box 1000
Lititz,PA 17543
LOANS AND LEASES
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Loans and leases, net of unearned income at September 30, 2002 and December 31, 2001, were as follows:
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September 30, December 31,
2002 2001
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Commercial, financial, and agricultural $ 473,477 $ 434,780
Real estate - construction 423,905 359,445
Real estate - mortgage 2,174,978 1,963,094
Consumer 351,080 325,170
Leases 333,219 437,009
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Total loans and leases $ 3,756,659 $ 3,519,498
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