For Immediate Release
Date: July 25, 2006
Contact: Mary Beth Steiginga,
Assistant Secretary
630 Godwin Avenue
Midland Park, NJ 07432
201- 444-7100
PRESS RELEASE
Stewardship Financial Corporation Announces
Earnings for the Second Quarter, 2006
Midland Park, NJ - July 25, 2006- Stewardship Financial Corporation (OTC:SSFN),
parent of Atlantic Stewardship Bank, announced today net income for the three
(3) months ended June 30, 2006 of $1.17 million or $0.25 basic earnings per
share, an increase of 2.5% and 4.2% respectively, as compared to net income of
$1.14 million, or $0.24 basic earnings per share for the same three (3) month
period in 2005. Fully diluted earnings per share were $0.24 per share for the
three (3) months ended June 30, 2006 and 2005.
For the six (6) months ended June 30, 2006, Stewardship Financial Corporation
reported net income of $2.28 million or $0.48 basic earnings per share, an
increase of 6.2% and 6.7% respectively, as compared to net income of $2.14
million or $0.45 per share for the same six (6) month period in 2005. Diluted
earnings per share were $0.47 for the six (6) months ended June 30, 2006, an
increase of 4.4% over the diluted earnings per share of $0.45 for the six (6)
months ended June 30, 2005. Per share calculations have been
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adjusted for a 5% stock dividend paid in November 2005 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, 2006. Despite the pressure on the Bank's net interest
margin caused by rising short term interest rates and a flat yield curve,
earnings continue to remain strong. We are encouraged by the activity within the
lending department as we continue to grow our loan portfolio to both new and
existing customers."
Stewardship Financial Corporation's total assets reached $495.4 million at June
30, 2006, compared to $461.0 million at June 30, 2005, resulting in growth of
7.5%. Total loans increased 14.3% to $359.8 million at June 30, 2006, compared
to $314.8 million at June 30, 2005. Total deposits were $419.0 million at June
30, 2006, compared to $400.6 million a year ago, resulting in growth of 4.6%.
Total stockholders' equity increased 7.9% to $35.0 million at June 30, 2006,
compared to $32.5 million a year ago.
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 11th branch is expected to
open 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. We
invite you to visit our website at www.asbnow.com for additional information.
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This information disclosed in this document contains certain "forward looking
statements" within the meaning of the Private Securities Litigation Reform Act
of 1995, and may be identified by the use of such words as "believe," "expect,"
"anticipate," "should," "plan," "estimate," and "potential." Examples of forward
looking statements include, but are not limited to, estimates with respect to
the financial condition, results of operations and business of the Corporation
that are subject to various factors which could cause actual results to differ
materially from these estimates. These factors include: changes in general,
economic and market conditions, legislative and regulatory conditions, or the
development of an interest rate environment that adversely affects the
Corporation's interest rate spread or other income anticipated from operations
and investments.
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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,
2006 2005 2006 2005
------- ------- ------- -------
Selected Operating Data:
Total interest income $14,318 $11,715 $ 7,334 $ 6,026
Total interest expense 4,879 2,834 2,572 1,547
------- ------- ------- -------
Net interest income before provision
for loan loss 9,439 8,881 4,762 4,479
Provision for loan loss 160 300 110 150
------- ------- ------- -------
Net interest income after provision
for loan loss 9,279 8,581 4,652 4,329
Noninterest income 1,902 1,545 1,032 896
Noninterest expense 7,641 6,766 3,863 3,451
------- ------- ------- -------
Income before income tax expense 3,540 3,360 1,821 1,774
Income tax expense 1,264 1,217 654 635
------- ------- ------- -------
Net income $ 2,276 $ 2,143 $ 1,167 $ 1,139
======= ======= ======= =======
Basic earnings per share $ 0.48 $ 0.45 $ 0.25 $ 0.24
Diluted earnings per share $ 0.47 $ 0.45 $ 0.24 $ 0.24
At June 30,
2006 2005
-------- --------
Selected Financial Data:
Total assets $495,367 $460,953
Total loans, net of deferred loan fees 359,804 314,786
Allowance for loan losses 4,011 3,570
Total deposits 418,956 400,558
Stockholders' equity 35,029 32,454
At or for the six month period ended
June 30,
2006 2005
-------- --------
Selected Financial Ratios:
Annualized return on average assets (ROA) 0.95% 1.00%
Annualized return on average equity (ROE) 13.36% 13.75%
Tier 1 equity to total assets 8.48% 8.56%
Book value per share $ 7.30 $ 6.82
All share data has been restated to include the effect of a 5% stock dividend
paid in November, 2005 and a 4 for 3 stock split issued July 1, 2005.
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