Exhibit 99.1
Susquehanna Bancshares, Inc. Announces First Quarter Results -
Continued Growth in Deposits, Loans and Leases, and Assets; Asset
Quality Remains Strong
LITITZ, Pa.--(BUSINESS WIRE)--April 27, 2004--Susquehanna
Bancshares, Inc., (Susquehanna) (Nasdaq:SUSQ) today announced net
income for the first quarter of 2004 was $15.9 million, or $0.40 per
diluted share, compared to the $16.1 million, or $0.40 per diluted
share for the first quarter of 2003.
First Quarter Financial Highlights
-- Total deposits grew 10%, rising to $4.3 billion from $3.9
billion in the first quarter of 2003.
-- Net loans and leases grew 10%, rising to $4.2 billion from
$3.8 billion in the first quarter of 2003.
-- Total assets grew 6%, rising to $6.0 billion from $5.7 billion
in the first quarter of 2003.
-- Credit quality improved as well, highlighted by:
-- The net charge-offs to average loans (NCO/Average loans &
leases) ratio improved to 0.13% for the first quarter of
2004 from 0.22% in the first quarter of 2003.
-- The nonperforming assets to total loans, leases and OREO
(NPA/Loans & leases & OREO) ratio improved to 0.46% for
the first quarter 2004 from 0.71% in the first quarter of
2003.
-- Non-interest income increased 6% over the first quarter
results reported for March 31, 2003, rising to $27.1 million.
Consistent with our strategy to increase other fee-based
income, for the quarter ended March 31, 2004, non-interest
income grew to 37% of total revenue. For the quarter ended
March 31, 2004, core banking contributed 38% of the total and
non-bank affiliates 62%.
-- Total assets under management and under administration grew to
$4.5 billion at March 31, 2004, from $3.3 billion at March 31,
2003, representing 37% growth.
Linked Quarter Highlights (First Quarter 2004 vs. Fourth Quarter
2003)
-- Deposits increased 5% to $4.3 billion.
-- Asset Quality improved in a number of areas:
-- NCO/Average loans & leases ratio improved slightly to
0.13% from 0.14% at December 31, 2003.
-- NPA/Loans & leases & OREO ratio improved to 0.46% from
0.65% at December 31, 2003.
-- Return on average equity improved to 11.64% from 10.27% at
December 31, 2003.
-- Non-interest income increased 20% to $27.1 million from $22.7
million at December 31, 2003. A 44% sequential increase in
asset management fees contributed to this growth.
-- Total assets under management and under administration grew to
$4.5 billion from $4.2 billion at year-end 2003, representing
more than 7% growth sequentially.
"At the end of March 2004, total assets exceeded $6 billion for
the first time," commented William J. Reuter, Susquehanna's Chairman,
President and CEO. "Indeed, growth continues in a number of areas
while we continue to enjoy excellent asset quality. We attribute our
strong asset quality to our conservative approach as we balance
growing our loan portfolio with prudent credit underwriting standards.
We believe that as a result of our strategic initiatives and our
overall approach, we will be well-positioned when interest rates rise.
"Additionally, with the completion of the Patriot Bank Corp.
acquisition scheduled for later in the second quarter, we will further
enhance our southeastern Pennsylvania presence and soon will become
the fifth largest banking company headquartered in Pennsylvania, with
total assets of over $7.0 billion."
Equity capital was $560 million at March 31, 2004, or $14.04 per
share, compared to $538 million at March 31, 2003, or $13.55 per
share.
Susquehanna's second quarter fully diluted EPS guidance is $0.39
to $0.42 and our fully diluted EPS guidance for the year 2004 remains
$1.64 to $1.72.
Additional Highlights
-- On April 21, 2004, Susquehanna shareholders approved the
merger transaction under which Susquehanna will acquire
Patriot Bank Corp. (Nasdaq:PBIX). Patriot Bank Corp.
shareholders also approved the merger on April 21, 2004.
Pending the expected regulatory approvals, the merger will
proceed and is expected to be consummated during the second
quarter of 2004.
-- Susquehanna has been named a 2004 Dividend Achiever by
Mergent, Inc. in the first quarter of 2004. This is
Susquehanna's fifth consecutive year receiving this
acknowledgement. This recognition highlights public companies
that have increased their regular cash dividends for at least
10 consecutive calendar years. Just 2.5 percent of all U.S.
companies that pay dividends made the list.
Susquehanna also announced it will broadcast its first quarter
results conference call over the Internet on April 28, 2004, at 11:00
AM Eastern time. Investors will have the opportunity to listen to the
conference call through a live broadcast on Susquehanna's Web site,
located at www.susqbanc.com. To listen to the live call, please go to
the Investor Relations section of Susquehanna's 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 $6.0 billion operating in multiple states. It provides
financial services through its subsidiaries at 160 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 brokerage
company and a vehicle leasing company. Investor information may be
requested on Susquehanna's Website 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.
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.
SUMMARY FINANCIAL INFORMATION
(Dollars in thousands, except per share data)
1Q04 1Q03
---------- ----------
Balance Sheet (EOP)
Investments $1,061,462 $1,279,710
Loans and leases 4,229,609 3,832,706
Allowance for loan & lease losses (ALLL) 42,946 40,281
Total assets 6,049,768 5,722,720
Deposits 4,345,898 3,939,339
Short-term borrowings 275,388 317,730
FHLB borrowings 492,794 605,413
Long-term debt 130,000 145,000
Shareholders' equity 559,596 537,645
Stated Book Value per Share 14.04 13.55
Tangible Book Value per Share 12.45 12.05
Average Balance Sheet
Investments 964,447 1,143,889
Loans and leases 4,257,328 3,804,254
Total earning assets 5,312,386 5,008,252
Total assets 5,918,908 5,520,174
Deposits 4,231,984 3,840,120
Short-term borrowings 287,270 280,364
FHLB borrowings 546,791 548,652
Long-term debt 130,000 157,833
Shareholders' equity 550,526 535,015
Income Statement
Net interest income 46,681 47,279
Loan & lease loss provision 1,700 2,705
Noninterest income 27,074 25,493
Noninterest expense 49,303 46,776
Income before taxes 22,752 23,291
Income taxes 6,826 7,220
Net income 15,926 16,071
Basic earnings per share 0.40 0.41
Diluted earnings per share 0.40 0.40
Cash dividends paid per share 0.22 0.21
Asset Quality
Net charge-offs (NCO) $1,426 $2,095
Nonaccrual loans & leases 17,749 17,474
Restructured loans 0 6,833
OREO 1,657 3,104
Total nonperforming assets (NPA) 19,406 27,411
Loans & leases 90 days past due 6,696 7,770
1Q04 1Q03
-------- --------
RATIO ANALYSIS
Credit Quality
NCO / Average loans & leases 0.13% 0.22%
NPA / Loans & leases & OREO 0.46% 0.71%
ALLL / Nonperforming loans & leases 241.96% 165.72%
ALLL / Total loans & leases 1.02% 1.05%
Capital Adequacy
Equity / Assets 9.25% 9.39%
Long-term debt / Equity 23.23% 26.97%
Profitability
Return on average assets 1.08% 1.18%
Return on average equity 11.64% 12.18%
Net interest margin 3.57% 3.88%
CONSOLIDATED BALANCE SHEETS
March 31, December 31, March 31,
2004 2003 2003
- ----------------------------------------------------------------------
(in thousands, except share data)
Assets
Cash and due from banks $137,500 $176,240 $176,199
Short-term investments:
Restricted 26,777 44,817 35,843
Unrestricted 122,721 34,145 24,979
- ----------------------------------------------------------------------
Total short-term investments 149,498 78,962 60,822
- ----------------------------------------------------------------------
Securities available for sale,
at fair value 1,056,929 983,882 1,276,369
Securities held to maturity, at
amortized cost (fair value
approximates $4,533, $4,340,
and $3,341) 4,533 4,340 3,341
Loans and leases, net of
unearned income 4,229,609 4,263,272 3,832,706
Less: Allowance for loan and
lease losses 42,946 42,672 40,281
- ----------------------------------------------------------------------
Net loans and leases 4,186,663 4,220,600 3,792,425
- ----------------------------------------------------------------------
Premises and equipment, net 63,605 62,961 60,642
Foreclosed assets 1,657 2,893 3,104
Accrued income receivable 17,235 17,494 19,994
Bank-owned life insurance 208,092 200,555 126,437
Goodwill 59,123 59,123 54,897
Intangible assets with finite
lives 4,215 4,372 4,842
Other assets 160,718 141,685 143,648
- ----------------------------------------------------------------------
$6,049,768 $5,953,107 $5,722,720
- ----------------------------------------------------------------------
Liabilities and Shareholders'
Equity
Deposits:
Demand $718,621 $724,474 $641,096
Interest-bearing demand 1,453,987 1,295,593 1,187,020
Savings 518,813 508,889 490,592
Time 1,255,054 1,251,058 1,289,449
Time of $100 or more 399,423 354,453 331,182
- ----------------------------------------------------------------------
Total deposits 4,345,898 4,134,467 3,939,339
Short-term borrowings 275,388 355,553 317,730
FHLB borrowings 492,794 613,850 605,413
Long-term debt 130,000 130,000 145,000
Accrued interest, taxes, and
expenses payable 41,226 35,791 37,838
Deferred taxes 109,737 104,281 93,690
Other liabilities 95,129 31,783 46,065
- ----------------------------------------------------------------------
Total liabilities 5,490,172 5,405,725 5,185,075
- ----------------------------------------------------------------------
Shareholders' equity:
Common stock, $2.00 par
value, 100,000,000 shares
authorized;
Issued: 39,868,108 at March
31, 2004, 39,861,317 at
December 31, 2003, and
39,675,183 at March 31, 2003 79,736 79,723 79,350
Additional paid-in capital 66,365 66,264 63,277
Retained earnings 410,606 403,450 382,990
Accumulated other
comprehensive income (loss),
net of taxes of $1,614,
($1,107), and $6,477 2,889 (2,055) 12,028
- ----------------------------------------------------------------------
Total shareholders' equity 559,596 547,382 537,645
- ----------------------------------------------------------------------
$6,049,768 $5,953,107 $5,722,720
- ----------------------------------------------------------------------
CONSOLIDATED STATEMENTS OF INCOME
- ----------------------------------------------------------------------
Three Months Ended
March 31,
- ----------------------------------------------------------------------
(Dollars in thousands, except per share data) 2004 2003
- ----------------------------------------------------------------------
INTEREST INCOME:
Loans and leases, including fees $61,134 $61,894
Securities: Taxable 7,713 11,329
Tax-exempt 260 462
Dividends 283 340
Short-term investments 197 164
- ----------------------------------------------------------------------
Total interest income 69,587 74,189
- ----------------------------------------------------------------------
INTEREST EXPENSE:
Deposits:
Interest-bearing demand 2,655 2,677
Savings 386 610
Time 11,815 13,965
Short-term borrowings 590 838
FHLB borrowings 5,120 6,038
Long-term debt 2,340 2,782
- ----------------------------------------------------------------------
Total interest expense 22,906 26,910
- ----------------------------------------------------------------------
Net interest income 46,681 47,279
Provision for loan and lease losses 1,700 2,705
- ----------------------------------------------------------------------
Net interest income, after provision for loan
and lease losses 44,981 44,574
- ----------------------------------------------------------------------
NONINTEREST INCOME:
Service charges on deposit accounts 4,882 4,466
Vehicle origination and servicing fees 5,193 7,003
Asset management fees 3,258 2,286
Income from fiduciary-related activities 1,468 1,522
Commissions on brokerage, life insurance
and annuity sales 916 235
Commissions on property and casualty
insurance sales 2,420 2,380
Income from bank-owned life insurance 2,012 1,642
Net gain on sale of loans and leases 3,671 2,538
Net gain on securities 563 90
Other 2,691 3,331
- ----------------------------------------------------------------------
Total noninterest income 27,074 25,493
- ----------------------------------------------------------------------
NONINTEREST EXPENSES:
Salaries and employee benefits 24,107 22,354
Occupancy 3,786 3,521
Furniture and equipment 2,094 2,200
Amortization of intangible assets 157 157
Vehicle residual value 1,211 1,418
Vehicle delivery and preparation 3,393 2,894
Other 14,555 14,232
- ----------------------------------------------------------------------
Total noninterest expenses 49,303 46,776
- ----------------------------------------------------------------------
Income before income taxes 22,752 23,291
Provision for income taxes 6,826 7,220
- ----------------------------------------------------------------------
NET INCOME $15,926 $16,071
- ----------------------------------------------------------------------
Earnings per share:
Basic $0.40 $0.41
Diluted $0.40 $0.40
Cash dividends $0.22 $0.21
Average shares outstanding:
Basic 39,866 39,656
Diluted 40,182 39,891
DISTRIBUTION OF ASSETS, LIABILITIES AND SHAREHOLDERS' EQUITY
Interest rates and interest differential-taxable equivalent basis
- ----------------------------------------------------------------------
For the Three Month Period For the Three Month Period
Ended Ended
March 31, 2004 March 31, 2003
- ------------------------------------------- --------------------------
(Dollars in Average Rate Average Rate
thousands) Balance Interest (%) Balance Interest (%)
- ----------------------------------------------------------------------
Assets
Short-term
investments $90,611 $197 0.87 $60,109 $164 1.11
Investment
securities:
Taxable 943,815 7,996 3.41 1,103,362 11,670 4.29
Tax-advantaged 20,632 400 7.80 40,527 711 7.12
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Total
investment
securities 964,447 8,396 3.50 1,143,889 12,381 4.39
- ----------------------------------------------------------------------
Loans and
leases, (net):
Taxable 4,189,597 60,441 5.80 3,749,330 61,136 6.61
Tax-advantaged 67,731 1,066 6.33 54,924 1,165 8.60
- ----------------------------------------------------------------------
Total loans
and leases 4,257,328 61,507 5.81 3,804,254 62,301 6.64
- ----------------------------------------------------------------------
Total interest-
earning assets 5,312,386 $70,100 5.31 5,008,252 $74,846 6.06
-------- ----- -------- -----
Allowance for
loan and lease
losses (43,339) (40,037)
Other non-earning
assets 649,861 551,959
- ---------------------------- -----------
Total assets $5,918,908 $5,520,174
- ---------------------------- -----------
Liabilities
Deposits:
Interest-
bearing
demand $1,364,918 $2,655 0.78 $1,156,866 $2,677 0.94
Savings 513,237 386 0.30 480,349 610 0.52
Time 1,651,567 11,815 2.88 1,612,614 13,965 3.51
Short-term
borrowings 287,270 590 0.83 280,364 838 1.21
FHLB borrowings 546,791 5,120 3.77 548,652 6,038 4.46
Long-term debt 130,000 2,340 7.24 157,833 2,782 7.15
- ----------------------------------------------------------------------
Total interest-
bearing
liabilities 4,493,783 $22,906 2.05 4,236,678 $26,910 2.58
-------- ----- -------- -----
Demand deposits 702,262 590,291
Other liabilities 172,337 158,190
- ---------------------------- -----------
Total
liabilities 5,368,382 4,985,159
- ---------------------------- -----------
Equity 550,526 535,015
- ---------------------------- -----------
Total liabilities
& shareholders'
equity $5,918,908 $5,520,174
- ---------------------------- -----------
Net interest
income / yield
on average
earning assets $47,194 3.57 $47,936 3.88
-------- ----- -------- -----
1. Average loan balances include non accrual loans.
2. Tax-exempt income has been adjusted to a tax-equivalent basis using
a marginal tax rate of 35%.
3. For presentation in this table, average balances and the
corresponding average rates for investment securities are based upon
historical cost, adjusted for amortization of premiums and accretion
of discounts.
LOANS AND LEASES
- ----------------------------------------------------------------------
Loans and leases, net of unearned
income were as follows:
- ----------------------------------------------------------------------
March 31, December 31,
(in thousands) 2004 2003
- ----------------------------------------------------------------------
Commercial, financial, and
agricultural $622,587 $621,438
Real estate - construction 557,526 549,672
Real estate secured - residential 1,302,497 1,306,371
Real estate secured - commercial 1,008,297 1,016,360
Consumer 337,276 337,989
Leases 401,426 431,442
- ----------------------------------------------------------------------
Total loans and leases $4,229,609 $4,263,272
- ----------------------------------------------------------------------
CONTACT: Susquehanna Bancshares, Inc., Lititz
Gregg M. Lampf, 717-625-6305
ir@susqbanc.com