CVLY » Topics » Executive summary

These excerpts taken from the CVLY 10-K filed Mar 30, 2009.

Executive summary

Throughout 2008, management and the Board of Directors continued to implement a series of initiatives, as guided by the Corporation’s long-range strategic plan. Selected accomplishments for 2008 included a continued focus on the planned expansion of the Corporation’s banking franchise. In November 2008, PeoplesBank opened its 17th full-service financial center. Located in Bel Air, Maryland, this new office follows the Bank’s earlier expansion during 2008 into the Hunt Valley, Maryland and Hanover, Pennsylvania markets. Coincident with physical expansion, the Corporation recruited several experienced business bankers, which enhanced its business banking reputation. Asset growth achieved a new record in 2008 as total assets increased $108 million or 18 percent above the level of year-end 2007. In light of strong balance sheet growth, which caused capital ratios to trend down, the Corporation applied for $16.5 million in capital under the U.S. Department of the Treasury’s Capital Purchase Program (CPP). The $16.5 million capital request was approved by the Treasury in December 2008, and the Corporation received the funds in January 2009 as described in the Shareholders’ Equity and Capital Adequacy section of this report. The CPP capital injection enables the Corporation to proceed on its planned growth path.

Earnings for the Corporation were negatively impacted by the economic forces that have affected the entire financial services industry. Net income for 2008 decreased 23 percent compared to 2007 (for comparative purposes, 2007 was reduced by the after-tax affect of a nonrecurring loan loss recovery in that year, which is described within the financial highlights section below), due to an increase in the provision for loan losses, net interest margin compression and increased operating expenses associated with franchise expansion. Accordingly, key financial ratios, such as return on average assets and return on average equity, also decreased, although Codorus Valley outperformed its peer group average for bank holding companies for the third Federal Reserve district for 2008. The Corporation has no direct loss exposure to subprime lending or investments collateralized by subprime mortgage collateral because it does not participate in the subprime lending market, nor does it invest in securities backed by subprime mortgages.

In the period ahead, management will remain focused on profitable balance sheet growth, acquiring and nurturing client relationships, risk management, and increasing noninterest income. Management expects the national and local economies to struggle throughout 2009 and possibly beyond. Risks and uncertainties include a deepened or prolonged weakness in economic and business conditions, which could increase credit-related losses, declines in the market value of investment securities considered to be other-than temporary, and continued downturn in the real estate markets.

13


Table of Contents

Executive summary



Throughout
2008, management and the Board of Directors continued to implement a series of
initiatives, as guided by the Corporation’s long-range strategic plan. Selected
accomplishments for 2008 included a continued focus on the planned expansion of
the Corporation’s banking franchise. In November 2008, PeoplesBank opened its
17th full-service financial center. Located in Bel Air, Maryland,
this new office follows the Bank’s earlier expansion during 2008 into the Hunt
Valley, Maryland and Hanover, Pennsylvania markets. Coincident with physical
expansion, the Corporation recruited several experienced business bankers,
which enhanced its business banking reputation. Asset growth achieved a new
record in 2008 as total assets increased $108 million or 18 percent above the
level of year-end 2007. In light of strong balance sheet growth, which caused
capital ratios to trend down, the Corporation applied for $16.5 million in
capital under the U.S. Department of the Treasury’s Capital Purchase Program
(CPP). The $16.5 million capital request was approved by the Treasury in
December 2008, and the Corporation received the funds in January 2009 as described
in the Shareholders’ Equity and Capital Adequacy section of this report. The
CPP capital injection enables the Corporation to proceed on its planned growth
path.



Earnings for
the Corporation were negatively impacted by the economic forces that have
affected the entire financial services industry. Net income for 2008 decreased
23 percent compared to 2007 (for comparative purposes, 2007 was reduced by the
after-tax affect of a nonrecurring loan loss recovery in that year, which is
described within the financial highlights section below), due to an increase in
the provision for loan losses, net interest margin compression and increased
operating expenses associated with franchise expansion. Accordingly, key
financial ratios, such as return on average assets and return on average
equity, also decreased, although Codorus Valley outperformed its peer group
average for bank holding companies for the third Federal Reserve district for
2008. The Corporation has no direct loss exposure to subprime lending or investments
collateralized by subprime mortgage collateral because it does not participate
in the subprime lending market, nor does it invest in securities backed by
subprime mortgages.



In the period
ahead, management will remain focused on profitable balance sheet growth,
acquiring and nurturing client relationships, risk management, and increasing
noninterest income. Management expects the national and local economies to
struggle throughout 2009 and possibly beyond. Risks and uncertainties include a
deepened or prolonged weakness in economic and business conditions, which could
increase credit-related losses, declines in the market value of investment
securities considered to be other-than temporary, and continued downturn in the
real estate markets.



13






Table of Contents


Executive summary



Throughout
2008, management and the Board of Directors continued to implement a series of
initiatives, as guided by the Corporation’s long-range strategic plan. Selected
accomplishments for 2008 included a continued focus on the planned expansion of
the Corporation’s banking franchise. In November 2008, PeoplesBank opened its
17th full-service financial center. Located in Bel Air, Maryland,
this new office follows the Bank’s earlier expansion during 2008 into the Hunt
Valley, Maryland and Hanover, Pennsylvania markets. Coincident with physical
expansion, the Corporation recruited several experienced business bankers,
which enhanced its business banking reputation. Asset growth achieved a new
record in 2008 as total assets increased $108 million or 18 percent above the
level of year-end 2007. In light of strong balance sheet growth, which caused
capital ratios to trend down, the Corporation applied for $16.5 million in
capital under the U.S. Department of the Treasury’s Capital Purchase Program
(CPP). The $16.5 million capital request was approved by the Treasury in
December 2008, and the Corporation received the funds in January 2009 as described
in the Shareholders’ Equity and Capital Adequacy section of this report. The
CPP capital injection enables the Corporation to proceed on its planned growth
path.



Earnings for
the Corporation were negatively impacted by the economic forces that have
affected the entire financial services industry. Net income for 2008 decreased
23 percent compared to 2007 (for comparative purposes, 2007 was reduced by the
after-tax affect of a nonrecurring loan loss recovery in that year, which is
described within the financial highlights section below), due to an increase in
the provision for loan losses, net interest margin compression and increased
operating expenses associated with franchise expansion. Accordingly, key
financial ratios, such as return on average assets and return on average
equity, also decreased, although Codorus Valley outperformed its peer group
average for bank holding companies for the third Federal Reserve district for
2008. The Corporation has no direct loss exposure to subprime lending or investments
collateralized by subprime mortgage collateral because it does not participate
in the subprime lending market, nor does it invest in securities backed by
subprime mortgages.



In the period
ahead, management will remain focused on profitable balance sheet growth,
acquiring and nurturing client relationships, risk management, and increasing
noninterest income. Management expects the national and local economies to
struggle throughout 2009 and possibly beyond. Risks and uncertainties include a
deepened or prolonged weakness in economic and business conditions, which could
increase credit-related losses, declines in the market value of investment
securities considered to be other-than temporary, and continued downturn in the
real estate markets.



13






Table of Contents


These excerpts taken from the CVLY 10-K filed Mar 25, 2008.

Executive summary

Throughout 2007, management and the Board of Directors continued to implement a series of initiatives, as guided by the Corporation’s long-range strategic plan. Selected accomplishments for 2007 included: creation of the Maryland Banking Group, which involved planning, staffing and site preparation for PeoplesBank’s newest financial center that opened in January 2008 in Hunt Valley, MD; restructuring the wealth management division of PeoplesBank to increase sales productivity and operating efficiency; implementing remote deposit capture, which allows business clients to deposit checks directly from their offices; and successfully introducing a new deposit product called the Hometown Spirit CD (or IRA), which results in charitable donations by PeoplesBank to local nonprofit organizations when customers open an account.

Our financial performance was sound in 2007, as described in the Financial Highlights section below, even after removing the impact of favorable non-recurring transactions. Asset quality deteriorated as evidenced by a 2.25 percent nonperforming asset ratio (NPA ratio) at year-end 2007, compared to a 1.09 percent ratio at year-end 2006. Management believes that the two delinquent business loan accounts that elevated the NPA ratio at year-end 2007 are well collateralized by real estate and that all amounts due from these borrowers will ultimately be collected. The Corporation has no loss exposure to subprime lending or investments collateralized by subprime mortgage collateral because it does not participate in the subprime lending market, nor does it invest in securities backed by subprime mortgages.

In the period ahead, management will remain focused on profitable balance sheet growth, acquiring and nurturing client relationships, branch office expansion, risk management, and increasing noninterest income. Challenges include an expected economic slowdown, a possible recession, continued downturn in the real estate markets, and competitive pricing pressures.

Executive summary



Throughout
2007, management and the Board of Directors continued to implement a series of
initiatives, as guided by the Corporation’s long-range strategic plan. Selected
accomplishments for 2007 included: creation of the Maryland Banking Group,
which involved planning, staffing and site preparation for PeoplesBank’s newest
financial center that opened in January 2008 in Hunt Valley, MD; restructuring
the wealth management division of PeoplesBank to increase sales productivity
and operating efficiency; implementing remote deposit capture, which allows
business clients to deposit checks directly from their offices; and
successfully introducing a new deposit product called the Hometown Spirit CD
(or IRA), which results in charitable donations by PeoplesBank to local
nonprofit organizations when customers open an account.



Our financial
performance was sound in 2007, as described in the Financial Highlights section
below, even after removing the impact of favorable non-recurring transactions.
Asset quality deteriorated as evidenced by a 2.25 percent nonperforming asset
ratio (NPA ratio) at year-end 2007, compared to a 1.09 percent ratio at
year-end 2006. Management believes that the two delinquent business loan
accounts that elevated the NPA ratio at year-end 2007 are well collateralized
by real estate and that all amounts due from these borrowers will ultimately be
collected. The Corporation has no loss exposure to subprime lending or
investments collateralized by subprime mortgage collateral because it does not
participate in the subprime lending market, nor does it invest in securities
backed by subprime mortgages.



In the period
ahead, management will remain focused on profitable balance sheet growth,
acquiring and nurturing client relationships, branch office expansion, risk
management, and increasing noninterest income. Challenges include an expected
economic slowdown, a possible recession, continued downturn in the real estate
markets, and competitive pricing pressures.



This excerpt taken from the CVLY 10-K filed Mar 20, 2007.

Executive summary

Throughout 2006, management and the Board of Directors (Board) continued to implement a series of initiatives, as guided by the Corporation’s long-range strategic plan. Our financial performance was strong in 2006, as described in the Financial Highlights section below, even though our net interest margin was under constant pressure as a result of a flat (and sometimes inverted) US treasury yield curve environment. Asset quality remained sound and capital was increased through profitable operations and the issuance of trust preferred debt to support planned balance sheet growth. Selected accomplishments for 2006 included: opening a loan production office in Towson, MD; opening a limited service banking facility at the Shrewsbury Lutheran Retirement Village in Shrewsbury, PA; enhancing brand awareness through advertising, community sponsorships and special events; offering new financial products, including the popular ultimate money market deposit account; improving sales incentive systems as an important component of our focus on service excellence; implementing multi-factor authentication, which provides greater security to our growing client base that uses our internet banking system; and increased operating efficiency by exchanging check images (as opposed to physical checks) for settlement with other participating banks. Also during the year, management laid the foundation for two important initiatives. The first is to restructure the wealth management business to increase sales effectiveness and improve operating efficiency, and the second is to implement remote deposit capture, which will enable our business clients to process check payments at their place of business. Both of these initiatives are scheduled for implementation in the first half of 2007.

In the period ahead, management will remain focused on profitable balance sheet growth, acquiring and nurturing client relationships, branch office expansion, risk management, and increasing noninterest income. Challenges include a continuation of the flat (and sometimes inverted) US treasury yield curve environment, competitive pricing pressures and a slowing housing market.

Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki