For Immediate Release
Date: April 23, 2004
Contact: Ellie King, Assistant Secretary
630 Godwin Avenue
Midland Park, NJ 07432
201 - 444-7100
PRESS RELEASE
Stewardship Financial Corporation Announces
Quarterly Earnings for the First Quarter, 2004
Midland Park, NJ - April 23, 2004 - Stewardship Financial Corporation
(OTC:SSFN.OB), parent of Atlantic Stewardship Bank, announced today net income
for the three (3) months ended March 31, 2004, of $867,000, an increase of 1.7%
in net income, versus $853,000, for the same three (3) month period in 2003.
Earnings in the first quarter of 2003 were impacted by a gain on sale of real
estate of $54,000 and gains on sales of securities of $27,000. Earnings,
excluding these items, increased 7.8% for the quarter. Basic earnings per share
and diluted earnings per share were $0.27 for the three (3) month periods ended
March 31, 2004 and 2003.
Stewardship Financial Corporation's total assets reached $400.5 million at March
31, 2004, compared to $338.0 million at March 31, 2003, resulting in growth of
18.5%. Total deposits were $340.6 million at March 31, 2004, compared to $307.3
million a year ago, resulting in growth of 10.8%. Total stockholders' equity
increased 13.1% to $27.9 million at March 31, 2004, compared to $24.6 million a
year ago.
Stewardship Financial Corporation's President and Chief Executive Officer Paul
Van Ostenbridge stated, "We are pleased to report the first quarter's net income
of $867,000. Earnings remained strong despite the decline in residential
mortgage activity. Commercial and consumer loan activity continue to be brisk,
contributing to the Corporation's increase in earning assets."
Stewardship Financial Corporation's subsidiary, the Atlantic Stewardship Bank,
has banking offices in Midland Park, Hawthorne (2), Pequannock, Ridgewood,
Waldwick, and Wayne (3), New Jersey. The bank is known for tithing 10% of its
pre-tax profits to Christian and local charities, and serves both individuals
and businesses. Visit our website at www.asbnow.com for additional information
regarding our products and services.
Page 2 of 3
Stewardship Financial Corporation
Financial Highlights
(unaudited)
(In thousands, except per share data)
Three Months Ended
March 31,
2004 2003
------------------
Selected Operating Data:
Total interest income $ 5,167 $ 4,604
Total interest expense 1,258 1,180
------------------
Net interest income before provision
for loan loss 3,909 3,424
Provision for loan loss 120 115
------------------
Net interest income after provision
for loan loss 3,789 3,309
(Losses) gains on sales of securities (4) 27
Gain on sales of other real estate -- 54
Other noninterest income 599 585
------------------
Noninterest income 595 696
Noninterest expense 3,033 2,694
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Income before income tax expense 1,351 1,311
Income tax expense 484 458
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Net income $ 867 $ 853
==================
Basic earnings per share $ 0.27 $ 0.27
Diluted earnings per share $ 0.27 $ 0.27
Reconciliation of net income to "earnings, excluding these items":
Net income $ 867 $ 853
Adjustments:
Losses (gains) on securities sold (4) 27
Gain on real estate sold 0 54
Tax effect of adjustments 1 (33)
---------------
Earnings, excluding these items $ 870 $ 805
===============
At March 31,
2004 2003
-------- --------
Selected Financial Data:
Total assets $400,518 $337,985
Total loans, net of deferred loan fees 267,182 231,258
Allowance for loan losses 2,964 2,788
Total deposits 340,568 307,288
Stockholders' equity 27,854 24,638
At or for the period ended
March 31,
2004 2003
---------- --------
Selected Financial Ratios:
Annualized return on average assets (ROA) 0.88% 1.03%
Annualized return on average equity (ROE) 12.68% 14.18%
Equity to total assets 8.70% 7.29%
Book value per share $ 8.83 $ 7.89
All share data has been restated to include the effect of a 3 for 2 stock
split issued in July, 2003 and a 5% stock dividend paid in November, 2003.