For Immediate Release
Date: July 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 Second Quarter, 2004
Midland Park, NJ - July 21, 2004 - Stewardship Financial Corporation (OTC:SSFN),
parent of Atlantic Stewardship Bank, announced today net income for the three
(3) months ended June 30, 2004, of $937,000, or $0.30 basic earnings per share,
an increase of 8.7% and 7.1% respectively, as compared to net income of
$862,000, or $0.28 basic earnings per share for the same three (3) month period
in 2003. Diluted earnings per share were $0.29 for the three (3) months ended
June 30, 2004, an increase of 7.4% over the diluted earnings per share of $0.27
for the three (3) months ended June 30, 2003.
For the six (6) months ended June 30, 2004, Stewardship Financial Corporation
reported net income of $1.8 million or $0.57 basic earnings per share, an
increase of 5.2% and 3.6% in net income and basic earnings per share
respectively, as compared to net income of $1.7 million or $0.55 per share for
the same six (6) month period in 2003. Diluted earnings per share were $0.56 for
the six (6) months ended June 30, 2004, an increase of
3.7% over the diluted earnings per share of $0.54 for the six (6) months ended
June 30, 2003.
Stewardship Financial Corporation's President and Chief Executive Officer Paul
Van Ostenbridge stated, "We are pleased to report the earnings increase for the
period ending June 30, 2004. This increase was due to the substantial growth in
the bank's average earning assets and the quality of the loan portfolio."
Stewardship Financial Corporation's total assets reached $405.9 million at June
30, 2004, compared to $356.8 million at June 30, 2003, resulting in growth of
13.8%. Total deposits were $348.7 million at June 30, 2004, compared to $324.4
million a year ago, resulting in growth of 7.5%. Total stockholders' equity
increased 9.1% to $27.8 million at June 30, 2004, compared to $25.5 million a
year ago.
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. We invite you to visit our
website at www.asbnow.com for additional information.
Page 2 of 3
Stewardship Financial Corporation
Financial Highlights
(unaudited)
(In thousands, except per share data)
Six Months Ended Three Months Ended
June 30, June 30,
2004 2003 2004 2003
-----------------------------------------------------
Selected Operating Data:
Total interest income $ 10,335 $ 9,236 $ 5,167 $ 4,632
Total interest expense 2,441 2,355 1,182 1,175
-----------------------------------------------------
Net interest income before provision
for loan loss 7,894 6,881 3,985 3,457
Provision for loan loss 240 225 120 110
-----------------------------------------------------
Net interest income after provision
for loan loss 7,654 6,656 3,865 3,347
(Losses) gains on sales of securities (4) 27 - -
Gain on sales of other real estate - 54 - -
Other noninterest income 1,358 1,393 760 778
--------------------------------------------------
1,354 1,474 760 778
Noninterest expense 6,186 5,488 3,153 2,794
-----------------------------------------------------
Income before income tax expense 2,822 2,642 1,472 1,331
Income tax expense 1,018 927 535 469
-----------------------------------------------------
Net income $ 1,804 $ 1,715 $ 937 $ 862
=====================================================
Basic earnings per share $ 0.57 $ 0.55 $ 0.30 $ 0.28
Diluted earnings per share $ 0.56 $ 0.54 $ 0.29 $ 0.27
At June 30,
2004 2003
--------- ---------
Selected Financial Data:
Total assets $405,926 $356,794
Total loans, net of deferred loan fees 275,358 235,895
Allowance for loan losses 3,023 2,885
Total deposits 348,657 324,351
Stockholders' equity 27,804 25,496
At or for the six month period ended
June 30,
2004 2003
------ ------
Selected Financial Ratios:
Annualized return on average assets (ROA) 0.91% 1.01%
Annualized return on average equity (ROE) 13.10% 13.94%
Tier 1 equity to total assets 8.57% 7.15%
Book value per share $8.73 $8.52
All share data has been restated to include the effect of a 5% stock dividend
paid in November, 2003 and a 3 for 2 stock split paid July 1, 2003.