SECURITIES AND EXCHANGE COMMISSION
WASHINGTON DC 20549
FORM 10-Q
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 1997
or
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
Commission File No. 0-13599
Omega Financial Corporation
(Exact name of registrant as
specified in its charter)
Pennsylvania 25-1420888
(State or other jurisdiction or (IRS Employer Identification No.)
incorporation of organization)
366 Walker Drive 16801
State College, Pennsylvania (Zip Code)
(Address of principal executive
offices)
(814) 231-7680
Registrant's Telephone Number,
Including Area Code:
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange
Act of 1934 during the preceding twelve months (or for such shorter
period that the registrant was requested to file such reports), and (2)
has been subject to such filing requirements for the past ninety days.
Yes X No
The number of shares outstanding of each of the Registrant's classes of
common stock as of May 1, 1997:
Common Stock, $5.00 par value - 8,992,253 shares
PART I. Financial Information
Item 1. Financial Statements
<TABLE>
OMEGA FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)
MARCH 31, DECEMBER 31,
ASSETS 1997 1996
<S> <C>
Cash and due from banks $33,928 $30,380
Interest bearing deposits with other banks 584 512
Federal funds sold 22,350 18,075
Investment securities held to maturity
(Market value:
$118,064 and $114,171, respectively) 118,859 114,192
Investment securities available for sale 129,418 127,654
Total loans 690,959 698,323
Less: Unearned discount (1,501) (1,726)
Allowance for loan losses (11,763) (11,820)
Net loans 677,695 684,777
Premises and equipment, net 17,868 17,638
Other assets 14,860 14,117
TOTAL ASSETS $1,015,562 $1,007,345
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits:
Non-interest bearing $113,333 $114,870
Interest bearing 738,049 731,160
Total deposits 851,382 846,030
Short-term borrowings 6,924 5,292
Other liabilities 11,003 10,332
ESOP debt 4,169 4,213
Long-term debt 5,000 5,000
Other interest bearing liabilities 515 593
TOTAL LIABILITIES 878,993 871,460
Preferred stock, par value $5.00 per share:
Authorized - 5,000,000 shares;
Issued and outstanding -
219,781 shares Series A Convertible 5,000 5,000
Unearned compensation related to ESOP debt (3,313) (3,375)
Common stock, par value $5.00 per share:
Authorized - 25,000,000 shares
Issued -
9,012,492 shares at March 31, 1997;
6,104,246 shares at December 31, 1996
Outstanding -
9,012,492 shares at March 31, 1997;
6,033,926 shares at December 31, 1996 45,062 30,521
Capital surplus 1,768 5,649
Retained earnings 85,621 97,749
Cost of common stock in treasury
70,320 shares at December 31, 1996 0 (2,266)
Net unrealized gain on securities available for sale 2,431 2,607
TOTAL SHAREHOLDERS' EQUITY 136,569 135,885
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $1,015,562 $1,007,345
</TABLE>
OMEGA FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except share data)
Three Months
Ended
March 31,
1997 1996
[S] [C]
INTEREST INCOME:
Interest and fees on loans $15,060 $15,718
Interest and dividends on investment 3,384 2,951
securities
Other interest income 304 235
TOTAL INTEREST INCOME 18,748 18,904
INTEREST EXPENSE:
Interest on deposits 7,152 7,484
Interest on short-term borrowings 66 30
Interest on long-term debt and
other interest bearing liabilities 76 80
TOTAL INTEREST EXPENSE 7,294 7,594
NET INTEREST INCOME 11,454 11,310
Provision for loan losses 258 227
INCOME FROM CREDIT ACTIVITIES 11,196 11,083
OTHER INCOME:
Service fees 1,389 1,278
Trust fees 783 670
Gain on sale of loans 4
Gains on Investment securities available 162 212
for sale, net
TOTAL OTHER INCOME 2,334 2,164
OTHER EXPENSE:
Salaries and employee benefits 4,238 4,148
Net occupancy expense 551 568
Equipment expense 434 482
Data processing service 390 375
Other 2,247 2,224
TOTAL OTHER EXPENSE 7,860 7,797
Income before taxes 5,670 5,450
Income tax expense 1,769 1,622
NET INCOME $3,901 $3,828
NET INCOME PER COMMON SHARE:
Primary $ .42 $ .41
Fully diluted $ .41 $ .40
WEIGHTED AVERAGE SHARES AND EQUIVALENTS:
Primary 9,192,296 9,173,811
Fully diluted 9,554,016 9,519,966
All share and per share information has been restated
to give effect to the 3 for 2 stock split.
OMEGA FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
THREE MONTHS
ENDED
MARCH 31,
1997 1996
Cash flows from operating activities:
Net income $3,901 $3,828
Adjustments to reconcile net income to
net cash provided by operating activities:
Depreciation and amortization 646 684
Provision for loan losses 258 227
Gain on sale of investment securities (162) (212)
Gain on sale of fixed assets
and other property owned (15) (4)
Gain on sale of loans - (4)
Decrease (increase) in deferred tax asset 244 (98)
Increase in interest receivable and other assets (1,067) (887)
Increase (decrease) in interest payable (179) 1,705
Increase in taxes payable 1,055 1,655
Amortization of deferred net loan fees (86) (145)
Deferral of net loan fees 41 380
Decrease in accounts payable
and accrued expenses (228) (1,529)
Total adjustments 507 1,772
Net cash provided by operating activities 4,408 5,600
Cash flows from investing activities:
Proceeds from the sale or maturity of:
Interest bearing deposits with other banks 412 395
Investment securities available for sale 11,812 11,285
Investment securities held to maturity 7,071 9,203
Purchase of:
Interest bearing deposits with other banks (484) (1,332)
Investment securities held to maturity (12,554) (7,961)
Investment securities available for sale (13,010) (18,823)
Decrease (increase) in loans 6,756 (11,576)
Gross proceeds from sale of loans 113 9,794
Capital expenditures (664) (820)
Sale of fixed assets and other property owned 137 74
Decrease (increase) in federal funds sold (4,275) 1,210
Net cash used in investing activities (4,686) (8,551)
Cash flows from financing activities:
Increase in deposits, net 5,352 3,617
Increase in short-term borrowings, net 1,632 1,306
Principal payment on long-term debt (350)
Net change in other interest bearing liabilities (78) (8)
Dividends paid (1,488) (99)
Tax benefit from preferred stock dividend
and stock option activity 23 64
Issuance of common stock 701
Acquisition of treasury stock (2,885) (1,305)
Proceeds from sale of treasury stock 1,270 432
Net cash used in financing activities 3,826 4,358
Net increase in cash and due from banks $3,548 $1,407
Cash and due from banks at beginning of period $30,380 $38,796
Cash and due from banks at end of period 33,928 40,203
Net increase in cash and due from banks $3,548 $1,407
Interest paid $7,473 $5,889
Income taxes paid 530 3
OMEGA FINANCIAL CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
THREE MONTHS ENDED MARCH 31, 1997 AND 1996
A. Basis of Presentation:
The accompanying unaudited financial statements have been prepared in
accordance with the instructions to Form 10-Q and Rule 10-01 of Regulation
S-X. Accordingly, they do not include all the information and footnotes
required by generally accepted accounting principles for complete financial
statements. In the opinion of management, all adjustments, including
normal recurring accruals, considered necessary for a fair presentation
have been included. Operating results for the three months ended March 31,
1997 are not necessarily indicative of the results that may be experienced
for the year ending December 31, 1997 or any other interim period. For
further information, refer to the Consolidated Financial Statements and
Footnotes included in the Company's Annual Report on Form 10-K for the year
ended December 31, 1996.
The accompanying Consolidated Financial Statements include Omega Financial
Corporation (Omega), a bank holding company, and the combined results of
its wholly-owned banking and non-banking subsidiaries.
B. Common Stock Split
On March 25, 1997, the Board of Directors declared a three for two stock
split on the Company's common stock, effected in the form of a dividend to
shareholders of record on April 18, 1997. The split was paid on April 30,
1997, first via the reissuance of shares in treasury, to the extent
available, with the remainder of the split paid via authorized but unissued
shares. The common stock, capital surplus, retained earnings and cost of
common stock in treasury balances at March 31, 1997 have been restated to
reflect this split. In addition, all share and per share data presented has
been restated to reflect the split.
C. Current and Pending Accounting Changes
Statement of Financial Accounting Standards No. 125 - Accounting for
Transfers and Servicing of Financial Assets and Extinguishments of
Liabilities
Omega adopted Statement of Financial Accounting Standards (SFAS) No. 125
"Accounting for Transfers and Servicing of Financial Assets and
Extinguishments of Liabilities", as of January 1, 1997. This statement
provides accounting and reporting standards for transfers and servicing of
financial assets and extinquishment of liabilities. These standards are
based on consistent application of a financial-components approach that
focuses on control. The Financial Accounting Standards Board (FASB) has
also issued Statement No. 127, "Deferral of the Effective Date of Certain
Provisions of FASB Statement No. 125", which delays adoption of certain
components of Statement No. 125 until January 1, 1998. There was no
material effect on the Corporation's financial condition or results of
operation upon adoption of this pronouncement.
Statement of Financial Accounting Standards No. 128 - Earnings per Share
The FASB has issued Statement No. 128, "Earnings per Share", which is
effective for financial statements for both interim and annual periods
ending after December 15, 1997. Early adoption is prohibited. The statement
replaces primary earnings per share (EPS) with basic EPS and changes the
presentation requirements of per-share amounts relating to accounting
changes, discontinued operations and extraordinary items. Management
believes that the adoption of this statement will not have a material
effect on EPS.
D. Commitments and Contingent Liabilities:
In the ordinary course of business, Omega and its subsidiaries make
commitments to extend credit to their customers. At March 31, 1997 and
December 31, 1996 standby letters of credit issued and outstanding amounted
to $15,100,000 and $15,197,000, respectively. These letters of credit are
not reflected in the accompanying financial statements. Management does
not anticipate any significant losses as a result of these transactions.
At March 31, 1997, the Corporation had $115,299,000 outstanding in unused
lines of credit commitments extended to its customers. Of this amount,
$30,420,000, or 26.4%, are commitments to consumers for home equity lines
of credit and credit card limits. The remainder, $84,879,000, are
commercial commitments.
E. Earnings Per Share Data:
Primary earnings per share is computed based on the weighted average number
of shares and common stock equivalents outstanding during each period.
Primary earnings per share is computed by dividing net earnings after
preferred stock dividends by the weighted average number of shares and
dilutive common stock equivalents outstanding. The outstanding preferred
stock is not a common stock equivalent. On a fully-diluted basis, both
earnings and shares outstanding are adjusted to assume the conversion of
convertible preferred stock from the date of issue. All share and per share
data has been restated to give effect to the split.
<TABLE>
Computations of Per Share Earnings
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended
March 31,
PRIMARY EARNINGS PER SHARE 1997 1996
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Net income......................................... $3,901 $3,828
Dividend requirements for preferred stock,
net of tax benefits.............................. (75) (74)
Net earnings applicable to common stock............ 3,826 3,754
Shares and equivalents outstanding:
Weighted average number of common
shares outstanding............................... 9,052 9,062
Common stock equivalents - options................. 140 112
Weighted average of common shares
outstanding and equivalents...................... 9,192 9,174
Primary earnings per common share.................. $0.42 $0.41
FULLY DILUTED EARNINGS PER SHARE
Net income......................................... $3,901 $3,828
Additional cash contribution required to service
debt on assumed conversion of preferred
stock (tax effected)............................. (41) (45)
Net earnings applicable to common stock............ 3,860 3,783
Shares and equivalents outstanding:
Weighted average number of common
shares outstanding............................... 9,052 9,062
Common stock equivalents - options................. 156 112
Assumed conversion of preferred stock
outstanding and equivalents...................... 346 346
Weighted average of common shares
outstanding and equivalents...................... 9,554 9,520
Fully diluted earnings per common share............ $0.41 $0.40
</TABLE>
F. Investment Considerations
In analyzing whether to make, or to continue, an investment in Omega,
investors should consider, among other factors, certain investment
considerations more particularly described in "Item 1: Business -
Investment Considerations" in the Company's Annual Report on Form 10-K for
the year ended December 31, 1996, a copy of which can be obtained from
David N. Thiel, Senior Vice President, Omega Financial Corporation, 366
Walker Drive, State College, Pennsylvania 16801.
G. Forward Looking Statements
The information in this Report on Form 10-Q contains forward looking
statements (as such term is defined in the Securities Exchange Act of 1934
and the regulations thereunder), including without limitation, statements
as to the future loan and deposit volumes, the allowance and provision for
possible loan losses, future interest rates and their effect on Omega's
financial condition or results of operations, the classification of Omega's
investment portfolio and other statements as to trends or management's
beliefs, expectations or opinions. Such forward looking statements are
subject to risks and uncertainties and may be affected by various factors
which may cause actual results to differ materially from those in the
forward looking statements. Certain of these risks, uncertainties and other
factors are discussed in this Report on Form 10-Q, the Corporation's 1996
Annual Report or in Omega's Annual Report on Form 10-K for the year ended
December 31, 1996, copies of which may be obtained from Omega upon request
and without charge (except for the exhibits thereto) as described in Note F
above.
OMEGA FINANCIAL CORPORATION AND SUBSIDIARIES
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
1. Comparison of the Three Months Ended March 31, 1997 and 1996
Operations
The first quarter's income before income taxes increased $220,000, or 4.0%,
when compared to the same period in 1996. A $113,000, or 1.0%, increase in
income from credit activities, along with a $170,000, or 7.9% increase in
non-interest income accounts for this improvement. Non-interest expense
increased by only $63,000, or 0.8% during this time period.
After the income tax provision (which increased by $147,000, or 9.1%
compared to the same period in 1996) was deducted from earnings, net income
showed an improvement of $73,000, or 1.9%, over the first quarter of 1996.
The effective tax rate for the first quarter of 1997 increased to 31.2%
from 29.8% in the first quarter of 1996 as levels of tax exempt investments
have fallen.
Following are selected key ratios for the period:
Three Months Ended
March 31
1997 1996
Return on average assets (annualized)... 1.55% 1.54%
Return on average equity (annualized)... 11.35 12.14
Dividend payout ratio (common).......... 35.53 30.02
Average equity to average assets........ 13.68 12.70
Net Interest Income
In the first quarter of 1997, average earning assets increased by 1.8%, or
$16.6 million and net interest income increased by $144,000, or 1.3%, as
compared to the first quarter of 1996. Average interest bearing deposits
decreased by $1.8 million in the first quarter of 1997 as compared to the
first quarter of 1996. Although average loans decreased by $12.4 million,
the tax equivalent net interest margin has not been adversely affected. It
remained steady at 4.99%, as compared to 5.00% in the first quarter of
1996.
Following are key net interest margin ratios (annualized):
Three Months Ended
March 31
1997 1996
Yield on average earning assets......... 7.94% 8.10%
Cost to fund earning assets............. 3.10 3.26
Net interest margin..................... 4.84 4.84
Net interest margin - tax equivalent.... 4.99 5.00
At March 31, 1997, Omega had $444,941,000 of earning assets scheduled to
reprice over the next twelve months as compared to $433,901,000 in interest
bearing liabilities. This means that if rates rose by 100 basis points on
April 1, Omega's net interest income over a one year period would increase
by $1,035,000, or 2.2%, assuming that the volumes do not grow and the mix
of the balance sheet does not change. Conversely, a reduction in rates
would have a negative impact of a similar magnitude.
Other Income and Expense
Other income increased $170,000, or 7.9% for the first quarter of 1997 as
compared to the same period in 1996. Service fee income for the first
quarter of 1997 increased $111,000, or 8.7% over the first quarter of 1996,
while trust fee income increased by $113,000, or 16.9%, when compared to
1996. Gains on investment security transactions resulted in $50,000 less
income in the first quarter of 1997 as compared to 1996.
As a percentage of average assets, other income net of security gains and
losses annualized was .86% for the first quarter of 1997 as compared to
.79% in 1996, while security gains were .06% and .09% of average assets for
1997 and 1996, respectively.
Other expenses were $63,000, or 0.8% higher for the first quarter of 1997
than for the same period in 1996. Salaries and employee benefits were
$90,000, or 2.2% higher in 1997 as in 1996. Occupancy and equipment
expense has been reduced by a total of 6.2%. Expense related to data
processing services has increased by 4.0% as a result of additional
services provided. Other non-interest expenses have increased by only 1.0%,
or $23,000.
As a percentage of average assets, annualized expenses for the quarter
ended March 31, 1997 were 3.13% and for the same period in 1996 were 3.14%.
2. Investment Securities
Management of the investment portfolio entails evaluation and realignment
of the size and mix of the portfolio in order to balance various
characteristics of the balance sheet, including asset quality, liquidity,
yield relationships, maturity and tax planning. The following schedule
describes characteristics of the investment portfolio as of March 31, 1997
and December 31, 1996.
<TABLE>
Securities Classified as Available for Sale
Gross Gross Estimated
Amortized Unrealized Unrealized Market
March 31, 1997 Cost Gains Losses Value
<S> <C>
U.S. Treasury securities and
obligations of other U.S. Govern-
ment agencies and corporations $86,419 $33 $(484) $85,968
Obligations of state and
political subdivisions 34,150 122 (228) 34,044
Equity securities 5,121 4,295 (10) 9,406
Total $125,690 $4,450 $(722) $129,418
Securities Classified as Held to Maturity
Gross Gross Estimated
Amortized Unrealized Unrealized Market
March 31, 1997 Cost Gains Losses Value
U.S. Treasury securities and
obligations of other U.S. Govern-
ment agencies and corporations $13,042 $ 1 $(108) $12,935
Obligations of state and
political subdivisions 7,208 2 (45) 7,165
Corporate securities 30,867 21 (185) 30,703
Mortgage backed securities 63,174 120 (601) 62,693
Investment in low-income housing 436 - - 436
Equity securities (non-marketable) 4,132 - - 4,132
Total $118,859 $144 $(939) $118,064
Securities Classified as Available for Sale
Gross Gross Estimated
Amortized Unrealized Unrealized Market
December 31, 1996 Cost Gains Losses Value
U.S. Treasury securities and
obligations of other U.S. Govern-
ment agencies and corporations $86,363 $142 $(313) $86,192
Obligations of state and
political subdivisions 32,243 192 (206) 32,229
Equity securities 5,049 4,231 (47) 9,233
Total $123,655 $4,565 $(566) $127,654
Securities Classified as Held to Maturity
Gross Gross Estimated
Amortized Unrealized Unrealized Market
December 31, 1996 Cost Gains Losses Value
U.S. Treasury securities and
obligations of other U.S. Govern-
ment agencies and corporations $7,047 $ 24 $ (22) $7,049
Obligations of state and
political subdivisions 6,815 12 (20) 6,807
Corporate securities 27,880 96 (111) 27,865
Mortgage backed securities 67,921 297 (297) 67,921
Investment in low-income housing 438 - - 438
Equity securities (non-marketable) 4,091 - - 4,091
Total $114,192 $429 $(450) $114,171
</TABLE>
Total investment securities as a percentage of total assets at March 31,
1997 and December 31, 1996 were 24.5% and 24.0%, respectively. Securities
maturing or repriceable in one year or less comprised 46.8% of the total
investment securities of $248,277,000 as of March 31, 1997, as compared to
40.1% of total investment securities of $241,846,000 as of December 31,
1996. There was $35,000 in investments in instruments of foreign countries
on March 31, 1997.
3. Interest Bearing Deposits with Other Financial Institutions
As of March 31, 1997, Omega had $584,000 in interest bearing deposits with
other banks. There were no investments in instruments issued by U.S.
branches of banks of foreign countries or deposits in banks of foreign
countries included in the March 31, 1997 balance.
4. Loans
Net loans outstanding in the first three months of 1997 fell by $7,082,000,
or 1.0%, bringing the total to $677,695,000 at March 31, 1997. The primary
cause of this decrease was increasing competitive pressure in consumer
lending.
Changes in the allowance for loan losses for the three months ended March
31, 1997 and 1996 were as follows (in thousands):
1997 1996
Balance at January 1.................... $11,820 $11,668
Charge-offs............................. (360) (154)
Recoveries.............................. 45 126
Net charge-offs..................... (315) (28)
Provision for loan losses............... 258 227
Balance at March 31..................... $11,763 $11,867
The allowance for loan losses is considered adequate by management to cover
possible uncollectible loans, as shown in the following table depicting
non-performing loans. Management is also of the opinion that the level of
loan loss provision is adequate to maintain the allowance at an acceptable
level. The allowance for loan losses at March 31, 1997 and December 31,
1996 represented 1.71% and 1.70%, respectively, of the total loans
outstanding, net of unearned interest.
Non-performing Loans
(In thousands)
March 31, December 31,
1997 1996
Non-accrual loans....................... $1,941 $2,079
Accruing loans past due 90 days or more. 1,952 1,241
Restructured loans...................... 37 14
Total non-performing loans.............. $3,930 $3,334
Non-performing loans as % of allowance.. 33.4% 28.2%
5. Deposits and Other Sources of Funds
Deposits provide the primary source of funding for loans and investment
securities. During the three month period ended March 31, 1997, total
deposits increased by $5,352,000 or 0.6%, with interest bearing funds
increasing $6.9 million and non-interest bearing deposits decreasing by
$1.5 million.
6. Regulatory Capital Compliance
Risk-based capital standards are issued by bank regulatory authorities in
the United States. These capital standards relate a banking company's
capital to the risk profile of its assets and provide the basis for which
all banking companies and banks are evaluated in terms of capital adequacy.
The risk-based capital standards require all banks to have Tier 1 capital
of at least 4% and total capital, including Tier 1 capital, of at least 8%
of risk-adjusted assets. Tier 1 capital includes common stockholders'
equity and qualifying perpetual preferred stock together with related
surpluses and retained earnings. Total capital is comprised of Tier 1
capital, limited life preferred stock, qualifying debt instruments, and the
reserves for possible loan losses. Banking regulators have also issued
leverage ratio requirements. The leverage ratio requirement is measured as
the ratio of Tier 1 capital to adjusted average assets. The table below
provides a comparison of Omega's and its bank subsidiaries' risk-based
capital ratios and leverage ratios to the minimum regulatory requirements
for the periods indicated.
<TABLE>
MINIMUM REQUIREMENT MINIMUM REGULATORY
FOR CAPITAL REQUIREMENTS TO BE
ACTUAL ADEQUACY PURPOSES "WELL CAPITALIZED"
OMEGA FINANCIAL CORPORATION AMOUNT RATIO AMOUNT RATIO AMOUNT RATIO
<S> <C>
As of March 31, 1997:
Total Capital $140,236 20.7% $54,315 8.0% $67,893 10.0%
(to Risk Weighted Assets)
Tier I Capital 131,676 19.4% 27,157 4.0% 40,736 6.0%
(to Risk Weighted Assets)
Tier I Capital 131,676 13.1% 40,199 4.0% 50,248 5.0%
(to Average Assets)
As of December 31, 1996:
Total Capital $139,411 20.3% $54,898 8.0% $68,622 10.0%
(to Risk Weighted Assets)
Tier I Capital 130,759 19.1% 27,449 4.0% 41,173 6.0%
(to Risk Weighted Assets)
Tier I Capital 130,759 13.0% 40,363 4.0% 50,453 5.0%
(to Average Assets)
OMEGA BANK
As of March 31, 1997:
Total Capital $74,718 19.4% $30,765 8.0% $38,456 10.0%
(to Risk Weighted Assets)
Tier I Capital 69,871 18.2% 15,383 4.0% 23,074 6.0%
(to Risk Weighted Assets)
Tier I Capital 69,871 12.4% 22,543 4.0% 28,178 5.0%
(to Average Assets)
As of December 31, 1996:
Total Capital $73,644 18.9% $31,177 8.0% $38,971 10.0%
(to Risk Weighted Assets)
Tier I Capital 68,732 17.6% 15,588 4.0% 23,383 6.0%
(to Risk Weighted Assets)
Tier I Capital 68,732 12.0% 22,902 4.0% 28,627 5.0%
(to Average Assets)
HOLLIDAYSBURG TRUST COMPANY
As of March 31, 1997:
Total Capital $30,444 18.2% $13,374 8.0% $16,718 10.0%
(to Risk Weighted Assets)
Tier I Capital 28,341 17.0% 6,687 4.0% 10,031 6.0%
(to Risk Weighted Assets)
Tier I Capital 28,341 11.7% 9,660 4.0% 12,076 5.0%
(to Average Assets)
As of December 31, 1996:
Total Capital $29,786 17.5% $13,602 8.0% $17,002 10.0%
(to Risk Weighted Assets)
Tier I Capital 27,648 16.3% 6,801 4.0% 10,201 6.0%
(to Risk Weighted Assets)
Tier I Capital 27,648 11.4% 9,687 4.0% 12,108 5.0%
(to Average Assets)
PENN CENTRAL NATIONAL BANK
As of March 31, 1997:
Total Capital $25,258 22.8% $8,873 8.0% $11,092 10.0%
(to Risk Weighted Assets)
Tier I Capital 23,851 21.5% 4,437 4.0% 6,655 6.0%
(to Risk Weighted Assets)
Tier I Capital 23,851 12.8% 7,468 4.0% 9,335 5.0%
(to Average Assets)
As of December 31, 1996:
Total Capital $24,943 22.2% $9,000 8.0% $11,251 10.0%
(to Risk Weighted Assets)
Tier I Capital 23,516 20.9% 4,500 4.0% 6,750 6.0%
(to Risk Weighted Assets)
Tier I Capital 23,516 12.6% 7,444 4.0% 9,306 5.0%
(to Average Assets)
</TABLE>
Pursuant to the Federal Deposit Insurance Corporation Improvement Act of
1991 ("FDICIA"), the FDIC has issued a rule which sets the capital level
for each of the five capital categories established in FDICIA. As required
by FDICIA, the regulations specify the levels at which an insured
institution would be considered "well capitalized", "adequately
capitalized", "undercapitalized", "significantly undercapitalized", or
"critically undercapitalized". At March 31, 1997, Omega and each of its
banking subsidiaries met the regulatory definition of a "well capitalized"
financial institution, i.e., a leverage ratio exceeding 5%, Tier 1 capital
exceeding 6%, and total capital exceeding 10%.
PART II. Other Information
Item 1. Legal Proceedings
None
Item 2. Changes in Securities
None
Item 3. Defaults upon Senior Debt
None
Item 4. Submission of Matters to a Vote of Security Holders
None
Item 5. Other Information
None
Item 6. Exhibits and Reports on Form 8-K
Exhibit 27 Financial Data Schedule
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly
caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
OMEGA FINANCIAL CORPORATION
(Registrant)
By:
Date David B. Lee
Chairman and
Chief Executive Officer
Date JoAnn N. McMinn
Senior Vice President and
Controller
(Principal Accounting Officer)
<TABLE> <S> <C>
<ARTICLE> 9
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM OMEGA
FINANCIAL CORPORATION'S 1ST QUARTER 1997 FORM 10Q AND IS QUALIFIED INITS
ENTIRETY BY REFERENCE TO SUCH 10Q.
</LEGEND>
<CIK> 0000705671
<NAME> OMEGA FINANCIAL CORP
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> MAR-31-1997
<CASH> 33,928
<INT-BEARING-DEPOSITS> 584
<FED-FUNDS-SOLD> 22,350
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 129,418
<INVESTMENTS-CARRYING> 118,859
<INVESTMENTS-MARKET> 118,064
<LOANS> 689,458
<ALLOWANCE> 11,763
<TOTAL-ASSETS> 1,015,562
<DEPOSITS> 851,382
<SHORT-TERM> 6,924
<LIABILITIES-OTHER> 11,003
<LONG-TERM> 9,684
0
1,687
<COMMON> 134,882
<OTHER-SE> 0
<TOTAL-LIABILITIES-AND-EQUITY> 1,015,562
<INTEREST-LOAN> 15,060
<INTEREST-INVEST> 3,384
<INTEREST-OTHER> 304
<INTEREST-TOTAL> 18,748
<INTEREST-DEPOSIT> 7,152
<INTEREST-EXPENSE> 7,294
<INTEREST-INCOME-NET> 11,454
<LOAN-LOSSES> 258
<SECURITIES-GAINS> 162
<EXPENSE-OTHER> 7,860
<INCOME-PRETAX> 5,670
<INCOME-PRE-EXTRAORDINARY> 3,901
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 3,901
<EPS-PRIMARY> .42
<EPS-DILUTED> .41
<YIELD-ACTUAL> 4,84
<LOANS-NON> 1,941
<LOANS-PAST> 1,952
<LOANS-TROUBLED> 37
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 11,820
<CHARGE-OFFS> 360
<RECOVERIES> 45
<ALLOWANCE-CLOSE> 11,763
<ALLOWANCE-DOMESTIC> 11,763
<ALLOWANCE-FOREIGN> 0
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</TABLE>
