Exhibit 99
[COMMONWEALTH BANCORP, INC. LOGO]
For release: IMMEDIATELY
Contact: Charles M. Johnston, Chief Financial Officer (610) 313-2189
COMMONWEALTH BANCORP, INC. REPORTS RECORD EARNINGS PER SHARE FOR 2000
NORRISTOWN, PA, JANUARY 16, 2001 - Commonwealth Bancorp, Inc. (NASDAQ: CMSB),
today reported net income of $4.0 million, or $0.37 per common share on a
diluted basis, for the fourth quarter of 2000, compared to net income of $3.8
million, or $0.34 per common share on a diluted basis, for the fourth quarter
of 1999. For the full year 2000, net income was $15.3 million, or a record
$1.39 per common share on a diluted basis, compared to net income of $16.7
million, or $1.32 per common share on a diluted basis, for the full year 1999.
The results for the full year 1999 reflected a $1.2 million (after-tax) net
gain on the sale of mortgage servicing rights and a $0.7 million (after-tax)
gain on the sale of two branches in Lebanon County, Pennsylvania. These gains
were offset, in part, by a $0.4 million (after-tax) charge primarily relating
to computer hardware and software upgrades, a $0.3 million (after-tax) charge
relating to certain assets acquired in the 1996 acquisition of 12 branches in
Lebanon and Berks Counties, Pennsylvania and a $0.2 million (after-tax) loss
on the sale of securities. Exclusive of these items, net income for the full
year 1999 would have been $15.7 million, or $1.25 per share on a diluted
basis.
On a business segment basis, net income from Community Banking increased from
$3.3 million, or $0.28 per common share, in the fourth quarter of 1999, to
$4.0 million, or $0.37 per common share, in the fourth quarter of 2000. Net
income from Mortgage Banking decreased from $0.6 million, or $0.05 per common
share, in the fourth quarter of 1999, to essentially breakeven in the fourth
quarter of 2000.
Net income from Community Banking, exclusive of the above items, increased
from $11.9 million, or $0.94 per common share, for the full year 1999, to
$15.7 million, or $1.42 per common share, for the full year 2000. Net income
from Mortgage Banking, exclusive of the above items, decreased from $3.8
million, or $0.30 per common share, for the full year 1999, to a loss of $0.4
million, or $0.04 per common share, for the full year 2000.
"Commonwealth continued to transition its business mix in the fourth quarter
of 2000 from that of a traditional thrift to one more reflective of a
community bank," stated Charles H. Meacham, Commonwealth's Chairman and Chief
Executive Officer. He added, "Compared to the fourth quarter of 1999, average
consumer loans increased 21% to $374 million and average commercial loans
increased 28% to $232 million, while average mortgage loans decreased 4% to
$848 million. This contributed to the strong improvement in Commonwealth's
net interest margin, which was 4.39% in the fourth quarter of 2000, compared
to 3.97% in the fourth quarter of 1999."
Net interest income was $18.5 million in the fourth quarter of 2000, compared
to $17.6 million in the fourth quarter of 1999. For the full year 2000, net
interest income was $73.5 million, versus $70.6 million for the full year
1999. These increases were primarily attributable to a higher net interest
margin, which was partially offset by a decrease in average interest earning
assets.
The net interest margin on a fully taxable equivalent basis was 4.39% in the
fourth quarter of 2000, compared to 3.97% in the fourth quarter of 1999. The
increase was primarily attributable to a 0.56% increase in the yield on
interest-earning assets, which reflected higher market interest rates and a
favorable change in asset mix, involving an increase in higher yielding
consumer and commercial loans, and a decrease in lower yielding mortgage loans
and securities.
For the full year 2000, the net interest margin on a fully taxable equivalent
basis was 4.28%, versus 3.67% for the full year 1999. The increase was
primarily attributable to a 0.58% increase in the yield on interest-earning
assets, which was due to the same factors responsible for the increase in the
fourth quarter of 2000.
Noninterest income totaled $6.0 million in the fourth quarter of 2000,
compared to $6.7 million in the fourth quarter of 1999. The decrease
primarily reflected a $1.2 million decrease in the net gain on sale of
mortgage loans and a $0.3 million decrease in mortgage servicing fees. These
decreases were partially offset by gains related to an investment in a Small
Business Investment Corporation, revenue related to Tyler Wealth Counselors
and an increase in deposit fees and related income. Tyler Wealth Counselors
was formed in connection with the acquisition of certain business interests of
Tyler Consulting, Inc. during the first quarter of 2000.
Noninterest income was $22.4 million for the full year 2000, compared to $30.1
million for the full year 1999. The decrease primarily reflected a $6.6
million decrease in the net gain on sale of mortgage loans. Also for the full
year 2000, mortgage servicing fees decreased by $2.5 million, reflecting the
sale of mortgage servicing rights during 1999. In addition, results for 1999
included a $1.6 million net gain on sale of mortgage servicing rights and a
$1.0 million gain on the sale of two branches in Lebanon County, Pennsylvania.
The impact of these factors was partially offset by a $1.7 million increase in
deposit fees and related income, an increase in revenue relating to Tyler
Wealth Counselors, gains related to an investment in a Small Business
Investment Corporation and an increase in the net gain on sale of securities.
The increase in deposit fees and related income was primarily attributable to
an increase in transaction accounts. The increase in Tyler Wealth Counselors'
revenue was related to the acquisition of certain business interests of Tyler
Consulting, Inc. during the first quarter of 2000.
Noninterest expense was $17.4 million in the fourth quarter of 2000, compared
to $17.9 million in the fourth quarter of 1999. The decrease was primarily
related to a decrease in mortgage banking expenses.
Noninterest expense was $69.8 million for the full year 2000, compared to
$73.3 million for the full year 1999. The decrease was primarily attributable
to a decrease in mortgage banking expenses and lower expenses relating to
certain stock benefit plans. Also contributing to the decrease was a $0.6
million charge in 1999 relating to computer hardware and software upgrades and
a $0.5 million charge in 1999 relating to certain assets acquired in the 1996
acquisition of 12 branches in Lebanon and Berks Counties, Pennsylvania.
Provision for loan losses totaled $1.6 million and $5.3 million in the fourth
quarter and full year 2000, respectively. The provision for loan losses
totaled $1.0 million and $4.0 million in the fourth quarter and full year
1999, respectively. At December 31, 2000, the allowance for loan losses
totaled $11.1 million, or 0.78% of loans, compared to $10.5 million, or 0.76%
of loans, at December 31, 1999.
Net credit losses totaled $1.4 million, or 0.39% of average loans in the
fourth quarter of 2000. This compared to $0.7 million, or 0.20% of average
loans in the fourth quarter of 1999. For the full year 2000, net credit
losses totaled $4.6 million, or 0.33% of average loans, compared to $3.1
million, or 0.23%, in 1999. The increases were primarily related to an
increase in consumer net credit losses, which were $1.3 million and $4.3
million in the fourth quarter and full year 2000, compared to $0.6 million and
$1.9 million in the fourth quarter and full year 1999.
Nonperforming assets totaled $10.7 million, or 0.57% of assets at December 31,
2000, compared to $10.4 million, or 0.54%, at December 31, 1999.
Provision for income taxes was $1.5 million, or 26.5% of income before income
taxes in the fourth quarter of 2000, compared to $1.6 million, or 29%, in the
fourth quarter of 1999. For the full year 2000, provision for income taxes
was $5.5 million, or 26.5% of income before income taxes, compared to $6.8
million, or 29%, in the full year 1999. The decrease in the effective tax
rate in the fourth quarter and full year 2000, relative to the comparable
periods in 1999, was primarily attributable to lower pre-tax income for the
full year 2000, which resulted in a higher relative percentage of tax-
advantaged income to total income.
The Bank's core and risk-based capital ratios were 7.0% and 11.3%,
respectively, at December 31, 2000, compared to 6.4% and 11.3%, respectively,
at December 31, 1999. As of December 31, 2000, the Bank was in full
compliance with all regulatory capital requirements.
Commonwealth Bancorp, Inc., with consolidated assets of $1.9 billion, is the
holding company for Commonwealth Bank, which has 60 branches throughout
southeast Pennsylvania. ComNet Mortgage Services, a division of Commonwealth
Bank, has offices in Pennsylvania, Maryland and New Jersey.
Certain statements contained herein may not be based on historical facts and
are "forward-looking statements" within the meaning of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the Securities Act of
1934, as amended. Actual results could differ materially from those indicated
in such statements due to risks, uncertainties and changes with respect to a
variety of market and other factors.
Detailed supplemental information follows.
<TABLE>
Commonwealth Bancorp, Inc. and Subsidiaries
Consolidated Statements of Income
(in thousands, except share and per share amounts)
<CAPTION>
For the Quarter For the Year
Ended December 31, Ended December 31,
2000 1999 2000 1999
----------- ----------- ----------- -----------
(Unaudited) (Unaudited)
<S>
Interest income: <C> <C> <C> <C>
Interest on loans $29,849 $26,658 $114,720 $105,371
Interest and dividends on deposits and
money market investments 544 712 2,021 3,633
Interest on investment securities 139 823 1,896 6,301
Interest on mortgage-backed securities 3,607 5,259 17,125 25,467
__________ __________ __________ __________
Total interest income 34,139 33,452 135,762 140,772
Interest expense:
Interest on deposits 12,225 12,742 49,006 52,989
Interest on notes payable and other
borrowings 3,406 3,061 13,300 17,170
__________ __________ __________ __________
Total interest expense 15,631 15,803 62,306 70,159
__________ __________ __________ __________
Net interest income 18,508 17,649 73,456 70,613
Provision for loan losses 1,625 1,000 5,250 4,000
__________ __________ __________ __________
Net interest income after
provision for loan losses 16,883 16,649 68,206 66,613
Noninterest income:
Deposit fees and related income 3,088 2,876 11,788 10,113
Servicing fees 196 463 797 3,281
Net gain on sale of mortgage loans 1,436 2,638 5,097 11,681
Net gain (loss) on sale of securities - - 45 (250)
Other 1,271 701 4,636 5,302
__________ __________ __________ __________
Total noninterest income 5,991 6,678 22,363 30,127
__________ __________ __________ __________
Noninterest expense:
Compensation and employee benefits 8,931 8,627 35,332 36,655
Occupancy and office operations 2,600 2,526 10,758 11,201
Amortization of intangible assets 1,239 1,157 4,928 4,823
Other 4,631 5,603 18,775 20,585
__________ __________ __________ __________
Total noninterest expense 17,401 17,913 69,793 73,264
__________ __________ __________ __________
Income before income taxes 5,473 5,414 20,776 23,476
Income tax provision 1,451 1,570 5,506 6,808
__________ __________ __________ __________
Net income $4,022 $3,844 $15,270 $16,668
========== ========== ========== ==========
Basic weighted average number of
shares outstanding 10,685,736 11,063,633 10,758,084 12,202,004
========== ========== ========== ==========
Basic earnings per share $0.38 $0.35 $1.42 $1.37
========== ========== ========== ==========
Diluted weighted average number of
shares outstanding 10,939,585 11,431,233 11,016,039 12,604,768
========== ========== ========== ==========
Diluted earnings per share $0.37 $0.34 $1.39 $1.32
========== ========== ========== ==========
</TABLE>
<TABLE>
Commonwealth Bancorp, Inc. and Subsidiaries
Consolidated Balance Sheets
(in thousands, except share and per share amounts)
<CAPTION>
December 31, December 31,
2000 1999
------------ ------------
(Unaudited)
<S> <C> <C>
Assets:
Cash and due from banks $66,329 $54,677
Interest-bearing deposits 85 3,499
Short-term investments available for sale 286 3,575
Mortgage loans held for sale 43,007 24,005
Investment securities
Securities available for sale (cost of $13,350
and $68,301, respectively), at market value 14,051 68,219
Mortgage-backed securities
Securities held to maturity (market value of $ -
and $92,965, respectively), at cost - 93,674
Securities available for sale (cost of $201,448
and $202,076, respectively), at market value 202,700 197,280
Loans receivable, net 1,416,110 1,361,430
Accrued interest receivable, net 9,435 9,499
FHLB stock, at cost 18,400 18,400
Premises and equipment, net 15,349 15,535
Intangible assets 30,450 33,048
Other assets, including net deferred taxes of $5,350
and $7,460, respectively 53,308 39,555
---------- ----------
Total assets $1,869,510 $1,922,396
========== ==========
Liabilities:
Deposits $1,454,592 $1,503,746
Notes payable and other borrowings:
Secured notes due to Federal Home Loan
Bank of Pittsburgh 171,666 127,000
Securities sold under agreements to repurchase 35,000 100,000
Other borrowings 17,830 9,076
Advances from borrowers for taxes and insurance 7,851 9,326
Accrued interest payable, accrued expenses and
other liabilities 22,118 20,883
--------- ---------
Total liabilities 1,709,057 1,770,031
--------- ---------
Commitments and contingencies
Shareholders' equity:
Preferred stock, $0.10 par value; 5,000,000 shares
authorized; none issued - -
Common stock, $0.10 par value; 30,000,000 shares authorized;
18,068,127 shares issued and 11,309,487 outstanding at
December 31, 2000
18,068,127 shares issued and 11,934,695 outstanding at
December 31, 1999 1,807 1,807
Additional paid-in capital 138,166 136,966
Retained earnings 145,869 135,780
Unearned stock benefit plan compensation (6,596) (8,504)
Accumulated other comprehensive income (loss) 1,286 (3,171)
Treasury stock, at cost; 6,758,640 and 6,133,432 shares,
respectively (120,079) (110,513)
---------- ----------
Total shareholders' equity 160,453 152,365
---------- ----------
Total liabilities and shareholders' equity $1,869,510 $1,922,396
========== ==========
</TABLE>
<TABLE>
Commonwealth Bancorp, Inc. and Subsidiaries
Selected Financial Data
(in thousands, except per share data)
<CAPTION>
For the Quarter Ended For the Year Ended
------------------------------- -------------------------------
12/31/00 12/31/99 12/31/00 12/31/99
------------------------------- -------------------------------
(Unaudited) (Unaudited)
<S> <C> <C> <C> <C>
BALANCE SHEET DATA:
Average Mortgage Loans $848,304 $879,208 $866,698 $936,997
Average Consumer Loans 373,760 307,722 351,778 277,545
Average Commercial Loans 232,161 180,742 211,784 158,356
Average Loans 1,454,225 1,367,672 1,430,260 1,372,898
Average Interest-Earning Assets 1,693,047 1,775,763 1,730,353 1,933,010
Average Assets 1,841,159 1,918,327 1,877,564 2,084,679
Average Core Deposits 944,082 947,304 954,741 956,414
Average Certificates of Deposit 488,160 566,851 516,779 609,574
Average Deposits 1,432,242 1,514,155 1,471,520 1,565,988
Average Interest-Bearing Liabilities 1,646,639 1,727,769 1,690,333 1,865,443
Average Shareholders' Equity 155,903 150,761 152,845 170,796
OPERATING DATA:
Annualized Return on Assets 0.87% 0.79% 0.81% 0.80%
Annualized Return on Equity 10.26% 10.12% 9.99% 9.76%
Mortgage Originations $123,350 $108,029 $415,255 $620,715
Average Yield on Mortgage Loans (a) 7.38% 7.17% 7.34% 7.18%
Average Yield on Consumer Loans (a) 9.36% 8.92% 9.19% 8.89%
Average Yield on Commercial Loans (a) 9.31% 8.61% 9.04% 8.59%
Average Yield on Loans (a) 8.20% 7.76% 8.05% 7.69%
Average Yield on Interest-Earning Assets (a) 8.06% 7.50% 7.88% 7.30%
Average Cost of Core Deposits 2.35% 2.35% 2.33% 2.31%
Average Cost of Certificates of Deposit 5.42% 5.00% 5.17% 5.06%
Average Cost of Deposits 3.40% 3.34% 3.33% 3.38%
Average Cost of Interest-Bearing Liabilities 3.78% 3.63% 3.69% 3.76%
Net Interest Margin (a) 4.39% 3.97% 4.28% 3.67%
Period End Book Value Per Share $14.19 $12.77 $14.19 $12.77
Period End Tangible Book Value Per Share 11.50 10.00 11.50 10.00
Period End Nonperforming Loans 7,995 7,779 7,995 7,779
Period End Nonperforming Assets 10,698 10,402 10,698 10,402
(a) Taxable equivalent basis
</TABLE>
