Exhibit 99
PRESS RELEASE
PennRock Financial Services Corp. Announces Earnings for
Fourth Quarter
Blue Ball, PA., January 18, 2001 _ PennRock Financial
Services Corp. (Nasdaq:PRFS), parent company of Blue Ball
National Bank, reports that net income for the fourth
quarter of 2000 was $2.0 million or $.33 per share, a 23.6%
decrease from $2.6 million or $.44 per share earned in the
fourth quarter of 1999. For the year ended December 31,
2000, income totaled $9.5 million or $1.60 per share
compared with $10.7 million or $1.79 per share earned in
1999, a decrease of 10.9%. The declines in income for the
quarter and year are attributed to a decrease in PennRock's
net interest margin as funding costs, primarily deposits
costs, increased faster than loan and security yields and to
the write-down and related charge against income relative to
one large commercial loan customer who declared bankruptcy
during 2000. Melvin Pankuch, Executive Vice President and
Chief Executive Officer noted, "We believe that with this
write-down, we have identified the extent of our potential
loss and have dealt with it in the fourth quarter of 2000.
Without this charge to income as a result of this loan, our
net income for the year would have been 3% or $.05 per share
higher than income for 1999. Our net interest margins were
compressed during the first three quarters of the year.
However, margins have improved each month for the last three
months of 2000. Looking forward to 2001, we are excited
about the recently announced acquisition of The National
Advisory Group. We have been seeking ways to increase
PennRock's fee income through new products and services. We
believe that the addition of The National Advisory Group is
an important complement to our existing asset management,
retirement plan and financial planning services. We expect
this acquisition, subject to regulatory approval, to be
completed before the end of the first quarter of 2001 and
that it will result in additional income to PennRock in 2001
of approximately $.10 per share."
Total assets of PennRock surpassed $900 million for the
first time in 2000. As of December 31, 2000, assets totaled
$910 million, an increase of $68 million or 8.1% during the
year. Loans increased $37 million or 8.1% and were funded
by increases in deposits of $52 million or 8.2%.
Stockholders' equity increased $13.4 million or 22.6% due in
part to the improvement in market value of the company's
security portfolio from year-end 1999.
PennRock is a bank holding company headquartered in Blue
Ball, Pennsylvania. Blue Ball National Bank, a wholly owned
subsidiary of PennRock, provides a broad range of banking,
trust and other financial services to consumers, small
businesses and corporations through 15 offices in south-
central and southeastern Pennsylvania.
This press release contains "forward looking statements" as
defined in the Private Securities Litigation Reform Act of
1995 related to anticipated financial performance and
business prospects. Such statements are not historical
facts and involve potentially significant risks and
uncertainties which could cause PennRock's actual results to
differ materially from the expectations contained in these
forward looking statements. The risks and uncertainties
that may cause such differences include changes in market
interest rates and equity prices, legislation and
regulations, and changes in economic, competitive and
technological conditions which could affect PennRock's
operations, pricing, products and services.
<TABLE>
<CAPTION>
(Unaudited; dollars in thousands, except per share data)
Three Months Twelve Months
Periods ending -------------------- --------------------
December 31: 2000 1999 2000 1999
--------- --------- --------- ----------
<S> <C> <C> <C> <C>
Interest income $16,790 $14,830 $64,234 $54,783
Interest expense 10,010 7,911 37,073 28,137
Net interest income 6,780 6,919 27,161 26,646
Provision for loan
losses 1,955 303 3,076 1,026
Other income 2,452 1,609 7,315 6,159
Other expenses 5,260 5,151 20,280 18,566
Net income $ 1,997 $ 2,615 $ 9,546 $10,710
EPS - basic $ .33 $ .44 $ 1.60 $ 1.79
EPS - diluted $ .33 $ .44 $ 1.60 $ 1.79
Weighted average
shares outstanding 5,963,620 5,971,106 5,963,620 5,971,106
As of December 31: 2000 1999
--------- ---------
<S> <C> <C>
Federal funds sold $ 26,658 $ 2,406
Mortgages held for
sale 235 295
Securities held for
sale 323,556 309,462
Loans 491,492 454,551
Total assets 910,342 842,446
Deposits 682,994 631,415
Borrowed funds 145,175 143,207
Stockholders'equity 72,598 59,233
Contact: George Crisp
PennRock Financial Services Corp.
(Nasdaq:PRFS)
Blue Ball, PA
(717) 354-4541
</TABLE>
