For Immediate Release
Date: July 27, 2005
Contact: Ellie King, Assistant Secretary
630 Godwin Avenue
Midland Park, NJ 07432
201-444-7100
PRESS RELEASE
Stewardship Financial Corporation Announces
Record Earnings for the Second Quarter, 2005
Midland Park, NJ - July 27 2005- Stewardship Financial Corporation (OTC:SSFN),
parent of Atlantic Stewardship Bank, announced today net income for the three
(3) months ended June 30, 2005 of $1.1 million or $0.25 basic and diluted
earnings per share, an increase of 21.6% and 19.0% respectively, as compared to
net income of $937,000, or $0.21 basic and diluted earnings per share for the
same three (3) month period in 2004.
For the six (6) months ended June 30, 2005, Stewardship Financial Corporation
reported net income of $2.1 million or $0.48 basic earnings per share, an
increase of 18.8% and 17.1% in net income and basic earnings per share
respectively, as compared to net income of $1.8 million or $0.41 per share for
the same six (6) month period in 2004. Diluted earnings per share were $0.47 for
the six (6) months ended June 30, 2005, an increase of 17.5% over the diluted
earnings per share of $0.40 for the six (6) months ended June 30, 2004. Per
share calculations have been adjusted for a 5% stock dividend paid in November
2004 and a 4 for 3 stock split issued on July 1, 2005.
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, 2005. This increase was due to the substantial growth in
the bank's average earning assets, the quality of the loan portfolio and a
strong increase in deposits."
Stewardship Financial Corporation's total assets reached $461.0 million at June
30, 2005, compared to $405.9 million at June 30, 2004, resulting in growth of
13.6%. Total deposits were $400.9 million at June 30, 2005, compared to $348.7
million a year ago, resulting in growth of 15.0%. Total stockholders' equity
increased 16.7% to $32.5 million at June 30, 2005, compared to $27.8 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 Waldwick Office will relocate to 64
Franklin Turnpike, Waldwick, NJ in the Fall of 2005, and a 10th branch is also
expected to open in Montville, NJ later this year. 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
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Stewardship Financial Corporation
Financial Highlights
(unaudited)
(In thousands, except per share data)
Six Months Ended Three Months Ended
June 30, June 30,
2005 2004 2005 2004
------------------- -------------------
Selected Operating Data:
Total interest income $ 11,715 $ 10,335 $ 6,026 $ 5,167
Total interest expense 2,834 2,441 1,547 1,182
-------------------- -------------------
Net interest income before provision
for loan loss 8,881 7,894 4,479 3,985
Provision for loan loss 300 240 150 120
-------------------- -------------------
Net interest income after provision
for loan loss 8,581 7,654 4,329 3,865
Losses on sales of securities -- (4) -- --
Other noninterest income 1,545 1,358 896 760
-------------------- -------------------
1,545 1,354 896 760
Noninterest expense 6,766 6,186 3,451 3,153
-------------------- -------------------
Income before income tax expense 3,360 2,822 1,774 1,472
Income tax expense 1,217 1,018 635 535
Net income $ 2,143 $ 1,804 $ 1,139 $ 937
=================== ===================
Basic earnings per share $ 0.48 $ 0.41 $ 0.25 $ 0.21
Diluted earnings per share $ 0.47 $ 0.40 $ 0.25 $ 0.21
At June 30,
2005 2004
---------- ----------
Selected Financial Data:
Total assets $460,953 $405,926
Total loans, net of deferred loan fees 314,786 275,358
Allowance for loan losses 3,570 3,023
Total deposits 400,923 348,657
Stockholders' equity 32,454 27,804
At or for the six month period ended
June 30,
2005 2004
------- --------
Selected Financial Ratios:
Annualized return on average assets (ROA) 1.00% 0.91%
Annualized return on average equity (ROE) 13.75% 13.10%
Tier 1 equity to total assets 8.56% 8.57%
Book value per share $ 7.16 $ 6.24
All share data has been restated to include the effect of a 5% stock dividend
paid in November, 2004 and a 4 for 3 stock split issued July 1, 2005.
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