For Immediate Release
Date: February 16, 2006
Contact: Ellie King
Assistant Secretary
630 Godwin Avenue
Midland Park, NJ 07432
201-444-7100
PRESS RELEASE
STEWARDSHIP FINANCIAL CORPORATION REPORTS RECORD
EARNINGS FOR YEAR ENDING DECEMBER 31, 2005
Midland Park, NJ - February 16, 2006 - Stewardship Financial Corporation
(OTC:SSFN), parent company of Atlantic Stewardship Bank, announced today net
income earned for the year ended December 31, 2005, of $4.5 million, or $0.94
basic net income per share, an increase of 16.4% and 14.6% in net income and
basic net income per share respectively, as compared to net income of $3.8
million or $0.82 per share for the year ended December 31, 2004.
Diluted income per share was $0.93 for the year ended December 31, 2005, an
increase of 14.8% over the diluted income per share of $0.81 for the year ended
December 31, 2004.
Net income for the quarter ended December 31, 2005, increased by 14.4% to $1.2
million from $1.0 million for the same three-month period in 2004. Basic and
diluted earnings per share for the quarter ended December 31, 2005, were $0.25
and $0.24 compared to $0.22 and $0.22, respectively for the same period in 2004.
page 1 of 3
Press Release - Midland Park NJ
Stewardship Financial Corporation continued February 16, 2006
Net income per share data has been restated to reflect a 4 for 3 stock split
issued in July, 2005, and a 5% stock dividend paid in November, 2005 and 2004.
Paul Van Ostenbridge, President and Chief Executive Officer of both Stewardship
Financial Corporation and Atlantic Stewardship Bank, stated, "We are pleased to
report our strongest earnings ever for the year ending December 31, 2005.
Despite the increases in interest rates and the flat yield curve, the
Corporation was able to achieve strong growth in deposits and loans.
Stewardship Financial Corporation's total assets reached $482.7 million at
December 31, 2005, compared to $424.3 million at December 31, 2004, for a growth
of 13.8%. Total loans increased $49.6 million, or 16.8% from $296.2 million at
December 31, 2004 to $345.8 million at December 31, 2005. Total deposits were
$404.1 million at December 31, 2005, compared to $356.9 million a year ago, an
increase of 13.2%. Total stockholders' equity increased 9.6% to $33.4 million at
December 31, 2005, compared to $30.5 million a year ago.
Stewardship Financial Corporation is the parent company for Atlantic Stewardship
Bank, which has banking offices in Midland Park, two branches in Hawthorne,
Pequannock, Ridgewood, Waldwick; and three branches in Wayne, New Jersey. The
Bank is opening its tenth branch in Montville on February 18, 2006. Atlantic
Stewardship Bank, opened in 1985, is a community bank serving individuals and
businesses, and is well known for tithing ten percent of its pre-tax profits to
Christian and local charitable organizations.Visit our website at www.asbnow.com
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or call 201-444-7100 for further information regarding our products and
services.
page 2 of 3
Stewardship Financial Corporation
Financial Highlights
(unaudited)
(In thousands, except per share data)
Year Ended Three Months Ended
December 31, December 31,
2005 2004 2005 2004
----------------------------------------------------
Selected Operating Data:
Total interest income $ 24,900 $ 21,152 $ 6,724 $ 5,509
Total interest expense 6,689 4,785 2,008 1,207
----------------------------------------------------
Net interest income before provision
for loan loss 18,211 16,367 4,716 4,302
Provision for loan loss 600 540 150 150
----------------------------------------------------
Net interest income after provision
for loan loss 17,611 15,827 4,566 4,152
Noninterest income 3,240 2,726 841 698
Noninterest expense 13,867 12,501 3,549 3,218
Income before income tax expense 6,984 6,052 1,858 1,632
Income tax expense 2,504 2,204 680 602
----------------------------------------------------
Net income $ 4,480 $ 3,848 $ 1,178 $ 1,030
====================================================
Basic earnings per share $ 0.94 $ 0.82 $ 0.25 $ 0.22
Diluted earnings per share $ 0.93 $ 0.81 $ 0.24 $ 0.22
At December 31,
2005 2004
---- ----
Selected Financial Data:
Total assets $482,727 $424,306
Total loans, net of deferred loan fees 345,823 296,208
Allowance for loan losses 3,847 3,299
Total deposits 404,128 356,918
Stockholders' equity 33,384 30,460
At or for the year ended
December 31,
2005 2004
---- ----
Selected Financial Ratios:
Annualized return on average assets (ROA) 1.00% 0.95%
Annualized return on average equity (ROE) 13.86% 13.48%
Tier 1 capital to total assets 8.37% 8.83%
Book value per share $ 7.03 $ 6.46
All share data has been restated to include the effect of a 4 for 3 stock
split paid July 1, 2005 and a 5% stock dividend issued November 15, 2005
and 2004.