EX-99 3 ex99_1-0054.txt PRESS RELEASE PRESS RELEASE April 29, 2003 For more information, contact: Walter G. Kelly, President Skibo Financial Corp. 242 East Main Street Carnegie, PA 15106 (412)276-2424 Skibo Financial Corp. Announces 4th Quarter and Fiscal Year Earnings Carnegie, Pennsylvania - (Nasdaq "SKBO") - Walter G. Kelly, President of Skibo Financial Corp. announced today earnings of $432,000 or $.13 per diluted share for the year ended March 31, 2003, as compared to earnings of $550,000 or $.17 per diluted share for the year ended March 31, 2002. This represents a decrease of $118,000 or 21.5% in earnings compared to the same period in 2002. The decrease in earnings for the year ended March 31, 2003, as compared to the prior fiscal year, can be attributed primarily to a decrease in net interest income, offset by an increase in other income, and decreases in other expenses and the provision for income taxes. Net interest income decreased $412,000 or 12.7% primarily due to a 20 basis point decrease in the net interest rate spread, resulting from loan payoffs and refinancings at lower rates of interest, and the proceeds from the call of government agency securities being reinvested into mortgage-backed securities, which generally have lower yields. Total other income increased $159,000 or 92.4% primarily due to increases in the cash surrender values of insurance policies held on the participants of the Supplemental Employee Retirement Plan ("SERP") and the proceeds of a nontaxable death benefit from an insurance policy held on a director under the Director's Retirement Plan ("DRP"), paid to the Bank upon the death of the director. Total other expenses decreased $17,000 or 0.6% during the fiscal year ending March 31, 2003, as compared to the prior fiscal year. The decrease was attributable to decreases of $5,000 in compensation and employee benefits expense, $14,000 in premises and occupancy expense, due to the full amortization of furniture and fixtures purchased seven years ago for the remodeling of the executive offices at the Carnegie office and the relocation of the Kennedy office, and $1,000 in federal insurance premiums, partially offset by an increase of $3,000 in other operating expenses. Earnings for the three months ended March 31, 2003 were $201,000 or $.06 per diluted share as compared to $100,000 or $.03 per diluted share in the same period in 2002. This represents a 101.0% increase in earnings. The increase in earnings for the quarter ended March 31, 2003 was primarily due to the proceeds of a nontaxable death benefit from an insurance policy held on a director under the DRP, paid to the Bank upon the death of the director. Skibo Financial Corp. had assets of $157.3 million and total stockholders' equity of $23.5 million on March 31, 2003. Skibo Financial Corp. is listed on the Nasdaq SmallCap market, traded under the symbol of "SKBO" and listed in The Wall Street Journal as "SkiboFn". SKIBO FINANCIAL CORP. SELECTED FINANCIAL AND OTHER DATA Financial Condition (In thousands) March 31, March 31, 2003(1) 2002(1) ----------- ----------- Assets $ 157,259 $ 155,118 Loans receivable, net 39,672 45,865 Mortgage-backed securities 95,305 78,064 Investment securities 8,356 17,421 Cash and cash equivalents 4,628 4,577 Savings deposits 81,842 78,520 Federal Home Loan Bank advances 48,000 48,000 Stockholders' equity 23,477 24,611

----------------- (1) Derived from March 31, 2003 and 2002 audited financial statements. (2) Includes 1,897,500 shares owned by Skibo Bancshares, M.H.C., Skibo Financial Corp.'s majority stockholder and mutual holding company.

SKIBO FINANCIAL CORP 8-K