EX-99.1 2 codorus115356_ex99-1.htm PRESS RELEASE DATED NOVEMBER 10, 2011

Exhibit 99.1

 

 

Codorus Valley Bancorp, Inc. Reports Updated Earnings for September 30, 2011

 

 

FOR IMMEDIATE RELEASE — York, Pennsylvania (November 10, 2011) -- Codorus Valley Bancorp, Inc. (Nasdaq: CVLY), the parent company of PeoplesBank, today announced an update to its originally reported earnings for the period ended September 30, 2011. The update resulted primarily from an asset impairment which the Corporation became aware subsequent to its earnings release of October 17, 2011 and prior to filing its Quarterly Report on Form 10-Q with the Securities and Exchange Commission. The Corporation lowered previously reported earnings by $1,026,000 primarily as a result of recording an additional $1,655,000 (pretax) provision for loan losses due to a material impairment of a nonperforming commercial loan based on the results of a public auction held November 3, 2011 of the real estate collateral supporting the loan. For the quarter ended September 30, 2011, the Corporation reported net income available to common shareholders of $4,000 or $0.00 per share, basic and diluted, compared to $1,535,000 or $0.37 per share, basic and diluted, for the quarter ended September 30, 2010. For the first nine months of 2011, net income available to common shareholders was $2,896,000 or $0.70 per share, $0.69 diluted, compared to $4,381,000 or $1.07 per share, $1.07 diluted, for the same period of 2010.

Updated financial information, which is unaudited, is provided in the Financial Highlights section of this Earnings Release.

Codorus Valley Bancorp, Inc. is the largest independent financial services holding company headquartered in York, Pennsylvania. Codorus Valley primarily operates through its financial services subsidiary, PeoplesBank, a Codorus Valley Company, comprised currently of 18 financial centers located throughout York County, Pennsylvania and in Hunt Valley, Bel Air and Westminster, Maryland. In addition to a full range of business and consumer banking services, the company also offers mortgage banking, wealth management, and real estate settlement services. Additional information is available on the bank’s website at www.peoplesbanknet.com.

 

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Codorus Valley Bancorp, Inc. has made forward-looking statements in this Press Announcement. 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 Announcement, the Company 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 Announcement. Those factors include, but are not limited to: credit risk, changes in market interest rates, competition, economic downturn or recession, and government regulation and supervision. The Company undertakes no obligation to update or revise any forward-looking statements. Accounting standards require the consideration of subsequent events occurring after the balance sheet date for matters that require adjustment to, or disclosure in, the consolidated financial statements. The review period for subsequent events extends up to and including the filing date of a public company’s financial statements when filed with the Securities and Exchange Commission. Accordingly, the consolidated financial information in this announcement is subject to change.

 

 

Questions or comments concerning this Earnings Release should be directed to the following:

 

Larry J. Miller
Vice-Chairman, President, and CEO
Codorus Valley Bancorp, Inc.
717-747-1500
888-846-1970
lmiller@peoplesbanknet.com

 

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Condensed Consolidated Statements of Income (Unaudited)

(in thousands of dollars, except per share data)

 

   Three months ended
September 30,
  Nine months ended
September 30,
   2011  2010  2011  2010
Interest income  $11,738   $11,218   $33,908   $32,693 
Interest expense   3,131    3,298    9,401    9,847 
Net interest income   8,607    7,920    24,507    22,846 
Provision for loan losses   3,560    560    4,785    1,910 
Noninterest income   1,666    1,617    4,891    4,914 
Gain on sale of loans held for sale   126    177    422    538 
Gain (loss) on sale of securities           (25)   108 
Noninterest expense   6,317    6,941    20,287    20,267 
Income before income taxes   522    2,213    4,723    6,229 
Provision (benefit) for income taxes   (139)   433    679    1,113 
Net income   661    1,780    4,044    5,116 
Preferred stock dividends and discount accretion   657    245    1,148    735 
Net income available to common shareholders  $4   $1,535   $2,896   $4,381 
Basic earnings per common share  $0.00   $0.37   $0.70   $1.07 
Diluted earnings per common share  $0.00   $0.37   $0.69   $1.07 
                     

 

 

Condensed Consolidated Statements of Financial Condition (Unaudited)
(in thousands of dollars)

 

   September 30,
2011
  December 31,
2010
  September 30,
2010
   
Cash and short term investments  $46,574   $43,269   $25,575     
Investment securities   233,261    226,603    240,820      
Loans   688,751    645,839    646,166      
Allowance for loan losses   (8,617)   (7,626)   (6,602)     
Net loans   680,134    638,213    639,564      
Premises and equipment, net   10,755    10,766    10,898      
Other assets   43,126    38,481    34,724      
Total assets  $1,013,850   $957,332   $951,581      
                     
Deposits  $857,748   $806,110   $795,131      
Borrowed funds   58,865    68,805    69,401      
Other liabilities   6,071    5,878    8,614      
Shareholders’ equity   91,166    76,539    78,435      
Total liabilities and shareholders' equity  $1,013,850   $957,332   $951,581      

 

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Selected Financial Data (Unaudited)

 

   Quarterly    Year-to-Date 
    2011   2011   2011   2010   2010   September 30,
   3rd Qtr  2nd Qtr  1st Qtr  4th Qtr  3rd Qtr  2011  2010
Earnings and Per Share Data                                   
(in thousands, except per share data)                                   
Net income available to common shareholders  $4   $1,626   $1,266   $847   $1,535   $2,896   $4,381 
Basic earnings per common share  $0.00   $0.39   $0.31   $0.21   $0.37   $0.70   $1.07 
Diluted earnings per common share  $0.00   $0.39   $0.30   $0.21   $0.37   $0.69   $1.07 
Cash dividends paid per common share  $0.09   $0.09   $0.08   $0.08   $0.08   $0.26   $0.17 
Book value per common share  $15.86   $15.60   $14.81   $14.51   $15.08   $15.86   $15.08 
Tangible book value per common share  $15.80   $15.53   $14.75   $14.44   $15.01   $15.80   $15.01 
Average common shares outstanding   4,167    4,150    4,138    4,115    4,097    4,152    4,086 
Average diluted common shares outstanding   4,206    4,208    4,184    4,128    4,106    4,197    4,090 
                                    
Performance Ratios (%)                                   
Return on average assets (4)   0.26    0.77    0.63    0.46    0.76    0.55    0.75 
Return on average equity (4)   3.04    9.31    7.78    5.53    9.11    6.60    9.03 
Return on average realized equity (1)(4)   3.24    9.75    8.03    5.85    9.70    6.92    9.49 
Net interest margin (2)   3.79    3.76    3.66    3.69    3.75    3.74    3.74 
Efficiency ratio (3)   58.13    66.99    70.12    74.41    68.10    64.91    68.26 
Net overhead ratio (6)(4)   1.81    2.15    2.20    2.43    2.21    2.05    2.17 
                                    
Asset Quality Ratios (%)                                   
Net loan charge-offs to average loans (4)   1.93    0.03    0.28    0.03    0.20    0.77    0.51 
Allowance for loan losses to total loans (5)   1.26    1.23    1.22    1.19    1.03    1.26    1.03 
Nonperforming assets to total loans and foreclosed real estate   3.90    5.11    4.79    4.50    3.32    3.90    3.32 
                                    
Capital Ratios (%)                                   
Average equity to average assets   8.68    8.32    8.13    8.23    8.37    8.38    8.31 
Tier 1 leverage capital ratio   9.53    9.03    8.95    8.81    8.98    9.53    8.98 
Tier 1 risk-based capital ratio   13.15    12.18    12.56    12.51    12.46    13.15    12.46 
Total risk-based capital ratio   14.35    13.35    13.72    13.64    13.45    14.35    13.45 

 

 

(1) excludes accumulated other comprehensive income (loss), principally unrealized gains (losses) on investment securities
(2) net interest income (tax-equivalent) as a percentage of average interest earning assets
(3) noninterest expense as a percentage of net interest income and noninterest income (tax-equivalent)
(4) annualized for the quarterly periods presented
(5) excludes loans held for sale
(6) noninterest expense less noninterest income as a percentage of average assets

 

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