HAMILTON, N.J., Oct. 25 /PRNewswire-FirstCall/ -- Yardville
National Bancorp (NASDAQ:YANB) reported net income for the third
quarter of $1.7 million, compared to $5.3 million earned for the
same period of 2006, while diluted earnings per share for the
quarter were $0.15, compared with $0.47 for the third quarter of
2006. For the first nine months of 2007, YNB reported a decline in
net income to $10.2 million, compared with $15.6 million for the
same period in 2006. Diluted earnings per share for the nine months
ended September 30, 2007 were $0.90, compared to $1.37 for the same
period in 2006. The decline in earnings was due to a reduction in
net interest income partly reflecting the current lending
environment, higher non-interest expenses and a higher provision
for loan losses. These were partially offset by lower income tax
expense and higher non-interest income. Expenses associated with
merger-related matters also contributed to the lower earnings
result. At September 30, 2007 total loans were $1.93 billion, a
decrease of 3.0 percent from $2.00 billion at September 30, 2006.
Non-performing assets were up $5.9 million to $26.3 million at
September 30, 2007, compared to $20.3 million at September 30,
2006, though approximately $3.0 million less than the prior
quarter. Total non-performing assets were 1.01 percent of total
assets at September 30, 2007, compared with 0.68 percent of total
assets at September 30, 2006. The allowance for loan losses to
total loans was 1.41 percent of total loans, covering 104.2 percent
of total non-performing loans at September 30, 2007. Net loan
chargeoffs declined to $4.4 million for the first nine months of
2007 compared to $6.6 million for the same period last year. During
the third quarter, YNB opened branches in Cranbury, Middlesex
County, and Lawrenceville, Mercer County. At September 30, 2007,
YNB had total deposits of $1.95 billion, compared to $2.03 billion
at September 30, 2006. The deposit decline was partially due to the
planned run-off of non-core deposits. At September 30, 2007, YNB's
total risk-based capital was 13.1 percent, Tier 1 capital to
risk-weighted assets was 11.9 percent, and Tier 1 capital to
average assets was 10.4 percent. For 2007, YNB paid total cash
dividends of $0.46 per share. On October 19, 2007, YNB shareholders
approved a proposal for the above- referenced merger with The PNC
Financial Services Group, Inc. (NYSE:PNC). Regulatory approval has
been received for the merger transaction and it is expected to
close on October 26, 2007. YNB had $2.59 billion in assets at
September 30, 2007, with 35 branches serving individuals and
businesses in Mercer, Hunterdon, Burlington, Middlesex, Somerset
and Ocean counties in New Jersey and Bucks County in Pennsylvania.
Forward-looking Statements This press release and other statements
made from time to time by Yardville's management contain express
and implied statements relating to Yardville's future financial
condition, results of operations, plans, objectives, performance,
and business, which are considered forward-looking statements.
These may include statements that relate to, among other things,
profitability, liquidity, adequacy of the allowance for loan
losses, plans for growth, interest rate sensitivity, market risk,
regulatory compliance, and financial and other goals. Although we
believe that the expectations reflected in such forward-looking
statements are based on reasonable assumptions, our expectations
may not be achieved. Actual results may differ materially from
those expected or implied as a result of certain risks and
uncertainties, including 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. Yardville assumes no obligation to update or supplement
forward-looking statements except as may be required by applicable
law or regulation. L.G. Zangani, LLC provides financial public
relations services 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. Contact: Kevin Tylus, President and COO, (609) 631-6196
Leonardo G. Zangani (908) 788-9660 YNB's website
http://www.ynb.com/ Investor Relations website
http://www.zangani.com/ Yardville National Bancorp Summary of
Financial Information (Unaudited) Three Months Ended Nine Months
Ended September 30, September 30, (in thousands, except per share
amounts) 2007 2006 2007 2006 Stock Information: Weighted average
shares outstanding: Basic 11,251 10,965 11,127 10,911 Diluted
11,504 11,345 11,440 11,314 Shares outstanding end of period 11,406
11,033 Earnings per share: Basic $0.15 $0.49 $0.92 $1.43 Diluted
0.15 0.47 0.90 1.37 Dividends paid per share 0.115 0.115 0.345 Book
value per share 17.16 17.51 Tangible book value per share 17.05
17.38 Closing price per share 33.63 35.66 Closing price to tangible
book value 197.24 % 205.18 % Key Ratios: Return on average assets
0.27 % 0.72 % 0.53 % 0.70 % Return on average stockholders' equity
3.58 11.46 7.16 11.47 Net interest margin 3.12 2.95 3.17 2.96 Net
interest margin (tax equivalent) (1) 3.21 3.02 3.26 3.03 Efficiency
ratio 68.00 58.50 68.79 59.89 Equity-to-assets at period end 7.53
6.41 Tier 1 leverage ratio (2) 10.39 8.82 Asset Quality Data: Net
loan charge-offs $2,032 $2,835 $4,353 $6,598 Nonperforming assets
as a percentage of total assets 1.01 0.68 % Allowance for loan
losses at period end as a percent of: Total loans 1.41 1.12
Nonperforming loans 104.17 112.89 Nonperforming assets at period
end: Nonperforming loans $26,266 $19,825 Other real estate - 502
Total nonperforming assets $26,266 $20,327 (1) The net interest
margin is equal to net interest income divided by average interest
earning assets. In order to make pre-tax income and resultant
yields on tax-exempt investments and loans on a basis 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 the appropriate Federal income tax rate for the
period, and has the effect of increasing interest income by
$570,000 and $544,000 for the three month periods and $1,692,000
and $1,614,000 for the nine months ended September 30, 2007 and
2006, respectively. (2) Tier 1 leverage ratio is Tier 1 capital to
adjusted quarterly average assets. Yardville National Bancorp and
Subsidiaries Consolidated Statements of Income (Unaudited) Three
Months Ended Nine Months Ended September 30, September 30, (in
thousands, except per share amounts) 2007 2006 2007 2006 INTEREST
INCOME: Interest and fees on loans $35,565 $38,062 $108,651
$110,790 Interest on deposits with banks 97 679 993 1,245 Interest
on securities available for sale 5,621 8,833 16,383 26,637 Interest
on investment securities: Taxable 16 22 52 71 Exempt from Federal
income tax 1,137 1,044 3,304 3,079 Interest on Federal funds sold
136 241 476 521 Total Interest Income 42,572 48,881 129,859 142,343
INTEREST EXPENSE: Interest on savings account deposits 7,182 7,061
21,443 20,182 Interest on certificates of deposit of $100,000 or
more 2,941 2,886 9,463 7,670 Interest on other time deposits 8,178
7,176 24,401 19,139 Interest on borrowed funds 3,751 9,177 10,981
27,873 Interest on subordinated debentures 1,412 1,411 4,203 4,077
Total Interest Expense 23,464 27,711 70,491 78,941 Net Interest
Income 19,108 21,170 59,368 63,402 Less provision for loan losses
4,700 2,125 7,150 6,275 Net Interest Income After Provision for
Loan Losses 14,408 19,045 52,218 57,127 NON-INTEREST INCOME:
Service charges on deposit accounts 642 736 1,917 2,172 Securities
gains, net 581 - 588 - Income on bank owned life insurance 472 454
1,386 1,315 Other non-interest income 513 524 1,942 1,681 Total
Non-Interest Income 2,208 1,714 5,833 5,168 NON-INTEREST EXPENSE:
Salaries and employee benefits 7,462 7,425 23,237 22,648 Occupancy
expense, net 1,944 1,581 5,605 4,376 Equipment expense 770 794
2,450 2,446 Other non-interest expense 4,319 3,586 13,558 11,600
Total Non-Interest Expense 14,495 13,386 44,850 41,070 Income
before income tax expense 2,121 7,373 13,201 21,225 Income tax
expense 399 2,045 2,959 5,672 Net Income $1,722 $5,328 $10,242
$15,553 EARNINGS PER SHARE: Basic $0.15 $0.49 $0.92 $1.43 Diluted
0.15 0.47 0.90 1.37 Weighted average shares outstanding: Basic
11,251 10,965 11,127 10,911 Diluted 11,504 11,345 11,440 11,314
Yardville National Bancorp and Subsidiaries Consolidated Statements
of Condition (Unaudited) September 30, December 31, (in thousands)
2007 2006 2006 Assets: Cash and due from banks $28,252 $30,656
$30,355 Federal funds sold 13,400 26,465 3,265 Cash and Cash
Equivalents 41,652 57,121 33,620 Interest bearing deposits with
banks 23,750 67,544 32,358 Securities available for sale 401,142
707,239 402,641 Investment securities 102,919 95,509 96,072 Loans
1,934,903 1,995,003 1,972,881 Less: Allowance for loan losses
(27,360) (22,380) (24,563) Loans, net 1,907,543 1,972,623 1,948,318
Bank premises and equipment, net 12,645 11,697 12,067 Other real
estate owned - 502 385 Bank owned life insurance 51,037 49,168
49,651 Other assets 51,482 42,250 45,619 Total Assets $2,592,170
$3,003,653 $2,620,731 Liabilities and Stockholders' Equity:
Deposits Non-interest bearing $181,656 $216,746 $197,126 Interest
bearing 1,765,307 1,815,459 1,806,157 Total Deposits 1,946,963
2,032,205 2,003,283 Borrowed funds Securities sold under agreements
to repurchase 10,000 10,000 10,000 Federal Home Loan Bank advances
343,000 674,000 324,000 Subordinated debentures 62,892 62,892
62,892 Obligation for Employee Stock Ownership Plan (ESOP) 1,125
1,828 1,688 Other 1,953 1,221 1,593 Total Borrowed Funds 418,970
749,941 400,173 Other liabilities 31,112 29,111 31,181 Total
Liabilities $2,397,045 $2,811,257 $2,434,637 Stockholders' equity:
Common stock: no par value 115,365 107,682 108,728 Surplus 2,205
2,205 2,205 Undivided profits 91,165 97,659 86,100 Treasury stock,
at cost (3,160) (3,160) (3,160) Unallocated ESOP shares (1,125)
(1,828) (1,688) Accumulated other comprehensive loss (9,325)
(10,162) (6,091) Total Stockholders' Equity 195,125 192,396 186,094
Total Liabilities and Stockholders' Equity $2,592,170 $3,003,653
$2,620,731 Financial Summary Average Balances, Yields and Costs
(Unaudited) Three Months Ended September 30, 2007 Average Average
Yield / (in thousands) Balance Interest Cost INTEREST EARNING
ASSETS: Interest bearing deposits with banks $14,593 $97 2.66 %
Federal funds sold 10,808 136 5.03 Securities 508,861 6,774 5.32
Loans (1) 1,914,303 35,565 7.43 Total interest earning assets
$2,448,565 $42,572 6.95 % NON-INTEREST EARNING ASSETS: Cash and due
from banks $30,289 Allowance for loan losses (25,128) Premises and
equipment, net 12,769 Other assets 85,720 Total non-interest
earning assets 103,650 Total assets $2,552,215 INTEREST BEARING
LIABILITIES: Deposits: Savings, money markets, and interest bearing
demand $895,285 $7,182 3.21 % Certificates of deposit of $100,000
or more 232,763 2,941 5.05 Other time deposits 651,416 8,178 5.02
Total interest bearing deposits 1,779,464 18,301 4.11 Borrowed
funds 313,537 3,751 4.79 Subordinated debentures 62,892 1,412 8.98
Total interest bearing liabilities $2,155,893 $23,464 4.35 %
NON-INTEREST BEARING LIABILITIES: Demand deposits $185,626 Other
liabilities 18,363 Stockholders' equity 192,333 Total non-interest
bearing liabilities and stockholders' equity $396,322 Total
liabilities and stockholders' equity $2,552,215 Interest rate
spread (2) 2.60 % Net interest income and margin (3) $19,108 3.12 %
Net interest income and margin (tax equivalent basis)(4) $19,678
3.21 % Three Months Ended September 30, 2006 Average Average Yield
/ (in thousands) Balance Interest Cost INTEREST EARNING ASSETS:
Interest bearing deposits with banks $48,451 $679 5.61 % Federal
funds sold 18,250 241 5.28 Securities 799,020 9,899 4.96 Loans (1)
2,006,680 38,062 7.59 Total interest earning assets $2,872,401
$48,881 6.81 % NON-INTEREST EARNING ASSETS: Cash and due from banks
$32,730 Allowance for loan losses (23,450) Premises and equipment,
net 11,811 Other assets 79,990 Total non-interest earning assets
101,081 Total assets $2,973,482 INTEREST BEARING LIABILITIES:
Deposits: Savings, money markets, and interest bearing demand
$936,087 $7,061 3.02 % Certificates of deposit of $100,000 or more
252,200 2,886 4.58 Other time deposits 619,723 7,176 4.63 Total
interest bearing deposits 1,808,010 17,123 3.79 Borrowed funds
689,532 9,177 5.32 Subordinated debentures 62,892 1,411 8.97 Total
interest bearing liabilities $2,560,434 $27,711 4.33 % NON-INTEREST
BEARING LIABILITIES: Demand deposits $212,068 Other liabilities
15,031 Stockholders' equity 185,949 Total non-interest bearing
liabilities and stockholders' equity $413,048 Total liabilities and
stockholders' equity $2,973,482 Interest rate spread (2) 2.48 % Net
interest income and margin (3) $21,170 2.95 % Net interest income
and margin (tax equivalent basis)(4) $21,714 3.02 % (1) Loan
origination fees are considered an adjustment to interest income.
For the purpose of calculating loan yields, average loan balances
include nonaccrual balances with no related interest income. (2)
The interest rate spread is the difference between the average
yield on interest earning assets and 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 make pre-tax income and resultant yields on tax-exempt
investments and loans on a basis 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 the appropriate Federal income tax rate for the period and
has the effect of increasing interest income by $570,000 and
$544,000 for the three month periods ended September 30, 2007 and
2006, respectively. Financial Summary Average Balances, Yields and
Costs (Unaudited) Nine Months Ended September 30, 2007 Average
Average Yield / (in thousands) Balance Interest Cost INTEREST
EARNING ASSETS: Interest bearing deposits with banks $25,548 $993
5.18 % Federal funds sold 14,567 476 4.36 Securities 502,032 19,739
5.24 Loans (1) 1,952,928 108,651 7.42 Total interest earning assets
$2,495,075 $129,859 6.94 % NON-INTEREST EARNING ASSETS: Cash and
due from banks $30,754 Allowance for loan losses (24,858) Premises
and equipment, net 12,477 Other assets 84,117 Total non-interest
earning assets 102,490 Total assets $2,597,565 INTEREST BEARING
LIABILITIES: Deposits: Savings, money markets, and interest bearing
demand $902,460 $21,443 3.17 % Certificates of deposit of $100,000
or more 252,883 9,463 4.99 Other time deposits 659,916 24,401 4.93
Total interest bearing deposits 1,815,259 55,307 4.06 Borrowed
funds 321,505 10,981 4.55 Subordinated debentures 62,892 4,203 8.91
Total interest bearing liabilities $2,199,656 $70,491 4.27 %
NON-INTEREST BEARING LIABILITIES: Demand deposits $187,605 Other
liabilities 19,634 Stockholders' equity 190,670 Total non-interest
bearing liabilities and stockholders' equity $397,909 Total
liabilities and stockholders' equity $2,597,565 Interest rate
spread (2) 2.67 % Net interest income and margin (3) $59,368 3.17 %
Net interest income and margin (tax equivalent basis)(4) $61,060
3.26 % Nine Months Ended September 30, 2006 Average Average Yield /
(in thousands) Balance Interest Cost INTEREST EARNING ASSETS:
Interest bearing deposits with banks $31,366 $1,245 5.29 % Federal
funds sold 14,068 521 4.94 Securities 809,409 29,787 4.91 Loans (1)
2,002,629 110,790 7.38 Total interest earning assets $2,857,472
$142,343 6.64 % NON-INTEREST EARNING ASSETS: Cash and due from
banks $34,635 Allowance for loan losses (23,165) Premises and
equipment, net 11,716 Other assets 78,102 Total non-interest
earning assets 101,288 Total assets $2,958,760 INTEREST BEARING
LIABILITIES: Deposits: Savings, money markets, and interest bearing
demand $952,150 $20,182 2.83 % Certificates of deposit of $100,000
or more 243,014 7,670 4.21 Other time deposits 587,183 19,139 4.35
Total interest bearing deposits 1,782,347 46,991 3.52 Borrowed
funds 707,701 27,873 5.25 Subordinated debentures 62,892 4,077 8.64
Total interest bearing liabilities $2,552,940 $78,941 4.12 %
NON-INTEREST BEARING LIABILITIES: Demand deposits $210,741 Other
liabilities 14,255 Stockholders' equity 180,824 Total non-interest
bearing liabilities and stockholders' equity $405,820 Total
liabilities and stockholders' equity $2,958,760 Interest rate
spread (2) 2.52 % Net interest income and margin (3) $63,402 2.96 %
Net interest income and margin (tax equivalent basis)(4) $65,016
3.03 % (1) Loan origination fees are considered an adjustment to
interest income. For the purpose of calculating loan yields,
average loan balances include nonaccrual balances with no related
interest income. (2) The interest rate spread is the difference
between the average yield on interest earning assets and 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 make pre-tax income and resultant
yields on tax-exempt investments and loans on a basis 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 the appropriate Federal income tax rate for the
period and has the effect of increasing interest income by
$1,692,000 and $1,614,000 for the nine month periods ended
September 30, 2007 and 2006, respectively. DATASOURCE: Yardville
National Bancorp CONTACT: Kevin Tylus, President and COO, Yardville
National Bancorp, +1- 609-631-6196; Leonardo G. Zangani, of L.G.
Zangani, LLC for Yardville National Bancorp, +1-908-788-9660 Web
site: http://www.ynb.com/
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