Exhibit 99
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P R E S S R E L E A S E
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RELEASE DATE: CONTACT:
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January 29, 2003 CHARLES P. EVANOSKI
GROUP SENIOR VICE PRESIDENT
CHIEF FINANCIAL OFFICER
(724) 758-5584
FOR IMMEDIATE RELEASE
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ESB FINANCIAL CORPORATION ANNOUNCES
RECORD EARNINGS FOR 2002
Ellwood City, Pennsylvania, January 29, 2003 - ESB Financial Corporation
(Nasdaq: ESBF), the parent company of ESB Bank, F.S.B., today announced
record earnings of $1.03 per diluted share on net income of $8.96 million for
the year ended December 31, 2002, which represents a 19.77% increase in net
income per diluted share as compared to earnings of $0.86 per diluted share
on net income of $7.23 million for the year ended December 31, 2001. Reported
net income for the year and quarter ended December 31, 2002 reflects the
adoption of Financial Accounting Standards Board Statement No. 142 (FAS 142)
on January 1, 2002, whereby goodwill is no longer amortized but will be
subject to annual impairment tests. Net income for the year ended December
31, 2001 would have been $7.96 million or $0.95 per diluted share, excluding
goodwill amortization of $734,000, if FAS 142 were effective for 2001. On a
fully comparative basis without goodwill amortization, the current year
income increased 8.42% per diluted share. The Company's annualized return
on average assets and average equity were 0.69% and 10.10%, respectively, for
the year ended December 31, 2002.
For the three months ended December 31, 2002, the Company announced earnings
of $0.25 per diluted share on net income of $2.23 million, which represents
a 19.05% increase in net income per diluted share as compared to earnings of
$0.21 per diluted share on net income of $1.82 million for the quarter ended
December 31, 2001. Net income for the quarter ended December 31, 2001 would
have been $2.00 million or $0.23 per diluted share, excluding goodwill
amortization of $184,000, if FAS 142 were effective for 2001. On a fully
comparative basis without goodwill amortization, the current quarter net
income increased 8.70% per diluted share when compared to the fourth quarter
of 2001. The Company's annualized return on average assets and average
equity were 0.68% and 9.42%, respectively, for the quarter ended December 31,
2002.
Press Release
Page 2 of 3
January 29, 2003
In announcing the results of operations for the quarter and the year ended
December 31, 2002, Charlotte A. Zuschlag, President and Chief Executive
Officer of the Company and the Bank, stated, "The Board of Directors,
executive management and I are pleased with the year end financial results
and earnings growth. During 2002, the Company was operating in an historically
low interest rate environment, volatile financial markets and less than
favorable economic conditions. The Company's management and Board of Directors
continually look for opportunities to grow earnings. This year we completed a
whole loan sale and securitization of a portion of the Bank's 1-4 family
residential mortgage loan portfolio. This movement of assets from loans to
securities affords management the ability to react quickly to a shift in
interest rates. The securitization also affords the Bank increased liquidity
and decreased credit risk. As a result of our strong earnings performance
this year, the Company issued and paid a six-for-five stock split, while
maintaining the $0.10 per share quarterly cash dividend, which effectively
increased the quarterly payout to our shareholders by 20 percent." The six-
for-five stock split was the Company's eighth such stock split in the last 12
years. Ms. Zuschlag concluded by stating, "Management will continue to
strive to pursue growth opportunities that will provide a sound investment
return to our shareholders." The Company has paid regular quarterly cash
dividends since going public in 1990.
Consolidated net income for the year ended December 31, 2002 increased $1.73
million or 23.95% to $8.96 million from $7.23 million. This net increase was
a result of an increase in net interest income of $2.24 million after the
current year recovery of loan losses of $410,000, as compared to a provision
for loan losses of $47,000 for the prior year, and an increase in non-
interest income of $931,000, which were partially offset by an increase in
non-interest expense of $897,000 and an increase in provision for income
taxes of $542,000. The $931,000 increase to non-interest income was primarily
due to an increase in the income generated from the Company's real estate
joint ventures of approximately $759,000.
The Company's consolidated total assets increased $56.63 million or 4.48% to
$1.32 billion at December 31, 2002, from $1.26 billion at December 31, 2001.
Securities increased $224.85 million or 35.12% to $865.14 million and net
loans receivable decreased $182.24 million or 34.84% to $340.89 million.
These changes were primarily the result of the securitization of a portion
of the Bank's 1-4 family residential mortgage loan portfolio. Total deposits
decreased $2.17 million or 0.37% to $589.83 million and borrowed funds
increased $43.72 million or 7.57% to $621.53 million, as compared to December
31, 2001.
Total stockholders' equity was $96.37 million or 7.30% of total assets, and
book value per share was $11.01 at December 31, 2002 compared to $79.9
million or 6.33% of total assets, and book value per share of $9.10 at
December 31, 2001.
The Company also announced that the annual meeting of stockholders is to be
held on Wednesday, April 16, 2003 at 4:00 p.m. at the Connoquenessing Country
Club in Ellwood City, Pennsylvania.
ESB Financial Corporation is the parent holding company of ESB Bank, F.S.B.
and offers a wide variety of financial products and services through 17
offices in the contiguous counties of Allegheny, Lawrence, Beaver and Butler
in Pennsylvania. The common stock of the Company is traded on The Nasdaq
Stock Market under the symbol "ESBF". We make available on our web site,
which is located at http://www.esbbank.com, our annual report on Form 10-K,
quarterly reports on Form 10-Q and current reports on Form 8-K, on the date
which we electronically file these reports with the Securities and Exchange
Commission. Investors are encouraged to access these reports and the other
information about our business and operations on our web site.
Press Release
Page 3 of 3
January 29, 2003
ESB FINANCIAL CORPORATION AND SUBSIDIARIES
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Financial Highlights
(Dollars in Thousands - Exept Per Share Amounts) (1)
OPERATIONS DATA:
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Year Ended Three Months
December 31, Ended December 31,
2002 2001 2002 2001
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Interest income $ 72,960 $ 79,667 $ 17,345 $ 19,410
Interest expense 51,301 59,790 12,172 14,353
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Net interest income 21,659 19,877 5,173 5,057
(Recovery of ) provision for loan losses (410) 47 170 3
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Net interest income after (recovery of)
provision for loan losses 22,069 19,830 5,003 5,054
Noninterest income 5,728 4,797 1,776 1,410
Noninterest expense 17,020 16,123 4,183 4,291
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Income before provision for income taxes 10,777 8,504 2,596 2,173
Provision for income taxes 1,817 1,275 365 351
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Net income $ 8,960 $ 7,229 $ 2,231 $ 1,822
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Earnings per share: (1)
Basic $1.06 $0.88 $0.26 $0.22
Diluted $1.03 $0.86 $0.25 $0.21
Annualized return on average assets 0.69% 0.59% 0.68% 0.58%
Annualized return on average equity 10.10% 9.49% 9.42% 8.85%
FINANCIAL CONDITION DATA:
- ------------------------- 12/31/02 12/31/01
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Total assets $1,319,695 $1,263,068
Cash and cash equivalents 15,133 15,479
Total investment securities 865,135 640,282
Loans receivable, net 340,892 523,131
Customer deposits 589,826 591,999
Borrowed funds (includes subordinated debt) 621,526 577,802
Stockholders' equity 96,371 79,903
Book value per share $ 11.01 $ 9.10
Average equity to average assets 6.85% 6.23%
Allowance for loan losses to loans receivable 1.19% 0.94%
Non-performing assets to total assets 0.28% 0.32%
1) Per share amounts have been restated to reflect the six-for-five stock
split which was declared during the third quarter of 2002, and paid
during the fourth quarter of 2002.