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EXHIBIT 99.1 PRESS RELEASE
Section: Financial News
DistributionTo Business Editor
Headline: WEST ESSEX BANCORP, INC. REPORTS QUARTER INCOME AND EARNINGS PER
SHARE REFLECTING MERGER RELATED EXPENSES
Dateline: Caldwell, New Jersey, May 14, 2003
Body:
Leopold W. Montanaro, Chairman, President & CEO of West Essex Bancorp,
Inc. (the "Company") (NASDAQ: WEBK), the holding company for West Essex Bank
(the "Bank"), today announced net income of $487,000 or $0.10 per diluted share
for the three months ended March 31, 2003, as compared to $804,000 or $0.17 per
diluted share for the three months ended March 31, 2002, a decrease in net
income and net income per diluted share of 39% and 41%, respectively.
Excluding merger related expenses, net income for the three months ended
March 31, 2003 was $513,000 and earnings per diluted share for the three months
ended March 31, 2003 was $0.10.
Commenting on the results for the three months ended March 31, 2003,
Montanaro stated, "Due to the current rate environment and the upcoming merger
with Kearny Financial Corp., the Company has been very conservative with its
recent investments." Montanaro further noted, "The Bank continues to experience
excellent asset quality with non-performing assets at 0.25% of tangible assets
and loan loss reserves at 145.0% of non-performing assets."
Results of Operations:
- ---------------------
Net interest income for the three months ended March 31, 2003 was $2.4
million, compared to $2.8 million at March 31, 2002. This decrease was a result
of a 112 basis point reduction in yield on earning assets to 5.16% from 6.28%
for the same quarter last year, partially offset by a 68 basis point reduction
in cost of funds to 3.00% from 3.68% for the same quarter last year. Net
interest margin was 2.63% for the three months ended March 31, 2003, compared to
3.19% in the same prior year period.
Non-interest income for the three months ended March 31, 2003 was
$162,000, a decrease from $165,000 in the prior year's period. Non-interest
expense for the three months ended March 31, 2003 increased to $1.81 million
from $1.78 million in the same prior year's period. The increase was primarily
related to merger-related costs.
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Financial Condition:
- -------------------
Total assets at March 31, 2003 decreased 2.1% to $384.4 million as
compared to $392.6 million at December 31, 2002. Loans receivable were $126.5
million compared to $138.5 million at December 31, 2002. The decrease in loans
is primarily a result of loan repayments exceeding loan originations for the
period. Mortgage-backed securities (MBS) were $163.2 million compared to $182.0
million at December 31, 2002. Deposits totaled $256.8 million compared to $255.1
million at December 31, 2002, while borrowed money was $73.9 million compared to
$84.3 million at December 31, 2002. Shareholder equity was $51.9 million
compared to $51.5 million at December 31, 2002.
During the quarter ended March 31, 2003, the Company did not repurchase
shares of its outstanding common stock under the Company's second repurchase
program. There remains 10,734 shares to be repurchased under the Company's
second repurchase program.
On March 20, 2003, the Company announced the payment of its seventeenth
consecutive quarterly cash dividend of fourteen cents ($0.14) for the quarter
ended March 31, 2003, payable April 10, 2003 to shareholders of record at March
31, 2003.
West Essex Bancorp, Inc., through its subsidiary West Essex Bank currently
operates 8 full service-banking offices throughout northern New Jersey. Also,
visit us at our web site @ www.westessexbank.com.
Statements contained in the news release, which are not historical facts,
are forward- looking statements as that term in defined in the Private
Securities Litigation Reform Act of 1995. Such forward looking statements are
subject to risks and uncertainties, which could cause actual results to differ
materially from those currently anticipated due to a number of factors, which
include, but are not limited to, factors discussed in documents filed by the
Company with the Securities and Exchange Commission from time to time. The
Company disclaims any obligation to update any forward-looking statements.
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FINANCIAL HIGHLIGHTS
(in thousands, except percentages and per share data)
THREE MONTHS ENDED
MARCH 31,
-------------------
2003 2002
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(UNAUDITED)
---------
SUMMARY OF OPERATIONS
Total Interest Income.................................... $4,758 $5,609
Total Interest Expense .................................. 2,334 2,762
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Net Interest Income................................... 2,424 2,847
Provision for Loan Loss.................................. - -
--------------------
Net Income after L.L. Provision....................... 2,424 2,847
Total Noninterest Income................................. 162 165
Total Noninterest Expense................................ 1,811 1,780
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Net Income before Income Taxes........................ 775 1,232
Income Taxes............................................. 288 428
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Net Income............................................... $ 487 $ 804
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PERFORMANCE RATIOS
Earnings Per Share-Basic ................................ $ 0.10 $ 0.17
Earnings Per Share--Diluted .............................. $ 0.10 $ 0.17
Yield on Average Tangible Assets......................... 0.61% 0.98%
Yield on Average Tangible Equity......................... 4.69% 7.54%
Net Interest Margin...................................... 2.63% 3.19%
Efficiency Ratio......................................... 63.31% 54.10%
SHARE INFORMATION
Cash Dividends Declared ................................. $ 0.14 $ 0.14
Book Value .............................................. $10.61 $10.44
Tangible Book Value ..................................... $10.06 $ 9.76
Avg. Diluted Shares ..................................... 4,895 4,874
SELECTED BALANCE SHEET DATA MARCH 31, 2003 DECEMBER 31, 2002
(UNAUDITED) (UNAUDITED)
-------------- -----------------
Total Assets.............................. $384,424 $392,624
Loans, net................................ 126,538 138,459
Mortgage-backed securities, net........... 163,164 182,029
Other securities, net..................... 46,731 28,169
Goodwill.................................. 2,717 2,865
Deposits.................................. 256,761 255,093
Borrowed Money ........................... 73,873 84,282
Shareholder equity........................ 51,896 51,455
Capital Ratios
Total equity to total assets.............. 13.50% 13.11%
Tangible equity to tangible assets........ 12.88% 12.47%