Exhibit 99.2
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P R E S S R E L E A S E
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RELEASE DATE: CONTACT:
April 15, 2003 CHARLES P. EVANOSKI
GROUP SENIOR VICE PRESIDENT
CHIEF FINANCIAL OFFICER
(724) 758-5584
FOR IMMEDIATE RELEASE
ESB FINANCIAL CORPORATION ANNOUNCES
FIRST QUARTER EARNINGS
Ellwood City, Pennsylvania, April 15, 2003 - ESB Financial Corporation
(Nasdaq: ESBF), the parent company of ESB Bank, F.S.B., today announced
earnings of $0.27 per diluted share on net income of $2.4 million for
the quarter ended March 31, 2003, which represents an increase of 12.5%
in net income per diluted share as compared to earnings of $0.24 per
diluted share on net income of $2.1 million for the same period in the
prior year. The Company's annualized return on average assets and
average equity were 0.71% and 9.54%, respectively, for the quarter
ended March 31, 2003.
Charlotte A. Zuschlag, President and Chief Executive Officer of the
Company, stated, "The Board of Directors, senior management and I are
pleased with the first quarter results and the Company's earnings given
the current low interest rate environment. Interest rates are the
lowest they have been in over 40 years and the resulting impact is
continued pressure to the Company's interest rate margins. I am pleased
that this Company has pursued strategies to grow earnings despite the
interest rate environment. One of these strategies has been the
Company's real estate joint ventures that are experiencing success."
Ms. Zuschlag noted that "over the remainder of the year management will
continue to pursue strategies to grow earnings and provide a sound
investment return to our shareholders."
Net income for the first quarter of 2003, as compared to the first
quarter of 2002, increased because of an increase in net interest
income after recovery of loan losses and an increase in noninterest
income, partially offset by increases in noninterest expense and
provision for income taxes. Net interest income, after the $182,000
recovery of loan losses, increased by $386,000 and noninterest income
increased by $360,000. Included in the increase to noninterest income
was a $192,000 increase in income associated with the Company's real
estate joint ventures and a $310,000 increase to gain on sale of
securities available for sale, partially offset by a decrease to fees
and service charges of $191,000. Partially offsetting these increases
to income were increases in noninterest expense and provision for
income taxes of $343,000 and $150,000, respectively.
Press Release
Page 2 of 3
April 15, 2003
The Company's total assets increased by $15.0 million or 1.1% to $1.3
billion at March 31, 2003. This increase resulted primarily from an
increase to securities of $27.4 million or 3.2% to $892.6 million,
partially offset by a decrease to loans receivable of $11.5 million or
3.4% to $327.8 million. The Company's total liabilities increased by
$11.5 million or 0.9% to $1.2 billion at March 31, 2003. This increase
in total liabilities was primarily the result of an increase in
deposits of $13.3 million or 2.3%, partially offset by a decrease in
borrowed funds of $2.6 million or 0.4%. Total stockholders' equity
increased $3.5 million or 3.7% to $99.9 million at March 31, 2003, from
$96.4 million at December 31, 2002. The increase to stockholders'
equity was the result of increases to retained earnings and accumulated
other comprehensive income of $1.3 million and $1.6 million,
respectively, as well as decreases to unearned employee stock ownership
plan shares and treasury stock of $157,000 and $370,000, respectively.
The increase to accumulated other comprehensive income was a result of
the market value adjustment to the Company's securities available for
sale portfolio. Average stockholders' equity to average assets was
7.41%, and book value per share was $11.37 at March 31, 2003 compared
to 6.85% and $11.01 at December 31, 2002.
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.
This news release contains certain forward-looking statements with
respect to the financial condition, results of operations and business
of the Company. Forward-looking statements are subject to various
factors which could cause actual results to differ materially from
these estimates. These factors include, but are not limited to,
changes in general economic conditions, interest rates, deposit flows,
loan demand, competition, legislation or regulation and accounting
principles, policies or guidelines, as well as other economic,
competitive, governmental, regulatory and accounting and technological
factors affecting the Company's operations.
Press Release
Page 3 of 3
April 15, 2003
ESB FINANCIAL CORPORATION AND SUBSIDIARIES
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Financial Highlights
(Dollars in Thousands - Except Per Share Amounts)
OPERATIONS DATA:
Three Months
Ended March 31,
2003 2002
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Interest income $ 16,748 $ 18,782
Interest expense 11,043 13,268
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Net interest income 5,705 5,514
(Recovery of) provision for loan losses (182) 13
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Net interest income after
(recovery of) provision for loan losses 5,887 5,501
Noninterest income 1,430 1,070
Noninterest expense 4,396 4,053
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Income before provision for income taxes 2,921 2,518
Provision for income taxes 557 407
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Net income $ 2,364 $ 2,111
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Net income per share:
Basic $0.28 $0.25
Diluted $0.27 $0.24
Annualized return on average assets 0.71% 0.67%
Annualized return on average equity 9.54% 10.42%
FINANCIAL CONDITION DATA:
As of:
03/31/03 12/31/02
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Total assets $1,334,729 $1,319,695
Cash and cash equivalents 15,787 15,133
Total investment securities 892,579 865,135
Loans receivable, net 327,849 339,324
Customer deposits 603,159 589,826
Borrowed funds (includes subordinated debt) 618,914 621,526
Stockholders' equity 99,936 96,371
Book value per share $11.37 $11.01
Average equity to average assets 7.41% 6.85%
Allowance for loan losses to loans receivable 1.16% 1.19%
Nonperforming assets to total assets 0.27% 0.28%