For Immediate Release
Date: May 9, 2006
Contact: Diane Kerner
630 Godwin Avenue
Midland Park, NJ 07432
201 - 444-7100
PRESS RELEASE
Stewardship Financial Corporation Announces
Quarterly Earnings for the First Quarter, 2006
Midland Park, NJ - May 9, 2006 - Stewardship Financial Corporation
(OTC:SSFN.OB), parent of Atlantic Stewardship Bank, announced today net income
for the three (3) months ended March 31, 2006, of $1.1 million, or $0.23 basic
net income per share, an increase of 10.5% and 9.5% in net income and basic net
income per share respectively, as compared to net income of $1.0 million, or
$0.21 per share for the same three (3) month period in 2005.
Diluted income per share was $0.23 for the quarter ended March 31, 2006, an
increase of 9.5% over the diluted income per share of $0.21 for the quarter
ended March 31, 2005.
Stewardship Financial Corporation's total assets reached $476.6 million at March
31, 2006, compared to $420.8 million at March 31, 2005, resulting in growth of
13.3%. Total gross loans increased 13.7% to $345.8 million at March 31, 2006,
compared to $304.2 million a year ago. Total deposits were $400.6 million at
March 31, 2006, compared to $361.0 million a year ago,
resulting in growth of 11.0%. Total stockholders' equity increased 10.8% to
$34.2 million at March 31, 2006, compared to $30.8 million a year ago.
Stewardship Financial Corporation's President and Chief Executive Officer Paul
Van Ostenbridge stated, "Despite the strong competitive market for deposits and
the rise in short-term interest rates, we are pleased to report the first
quarter's net income of $1.1 million. The quality of our loan portfolio and loan
demand remains strong and the Corporation continues to improve its noninterest
income. In February, we opened our tenth branch in Montville, New Jersey and are
excited about the initial reception we have received."
Stewardship Financial Corporation's subsidiary, the Atlantic Stewardship Bank,
has banking offices in Midland Park, Hawthorne (2), Montville, Pequannock,
Ridgewood, Waldwick, and Wayne (3), New Jersey. The Bank is working toward the
opening of its eleventh branch in Wyckoff, New Jersey during the first quarter
of 2007. 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.
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Stewardship Financial Corporation
Financial Highlights
(unaudited)
(In thousands, except per share data)
Three Months Ended
March 31,
2006 2005
--------------------
Selected Operating Data:
Total interest income $6,984 $5,689
Total interest expense 2,307 1,287
--------------------
Net interest income before provision
for loan loss 4,677 4,402
Provision for loan loss 50 150
--------------------
Net interest income after provision
for loan loss 4,627 4,252
Gains on sales of mortgage loans 50 18
Other noninterest income 820 631
--------------------
Total other income 870 649
Noninterest expense 3,778 3,315
--------------------
Income before income tax expense 1,719 1,586
Income tax expense 610 582
--------------------
Net income $1,109 $1,004
====================
Basic earnings per share $ 0.23 $ 0.21
Diluted earnings per share $ 0.23 $ 0.21
At March 31,
2006 2005
-------- --------
Selected Financial Data:
Total assets $476,565 $420,800
Total loans, net of deferred loan fees 345,761 304,152
Allowance for loan losses 3,920 3,438
Total deposits 400,557 360,966
Stockholders' equity 34,151 30,833
At or for the three month period ended
March 31,
2006 2005
--------- ---------
Selected Financial Ratios:
Annualized return on average assets (ROA) 0.94% 0.97%
Annualized return on average equity (ROE) 13.23% 13.13%
Tier 1 equity to total assets 8.64% 8.99%
Book value per share $ 7.18 $ 6.52
All share data has been restated to include the effects of a 5% stock dividend
paid in November 2005 and a 4 for 3 stock split issued July 2005.
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