Exhibit 99.1
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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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July 18, 2003 CHARLES P. EVANOSKI
GROUP SENIOR VICE PRESIDENT
CHIEF FINANCIAL OFFICER
(724) 758-5584
FOR IMMEDIATE RELEASE
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ESB FINANCIAL CORPORATION REPORTS
SECOND QUARTER 2003 EARNINGS
Ellwood City, Pennsylvania, July 18, 2003 - ESB Financial Corporation (Nasdaq:
ESBF), the parent company of ESB Bank, F.S.B., today announced earnings for
the quarter ended June 30, 2003 of $0.15 per diluted share on net income of
$1.7 million, as compared to earnings of $0.23 per diluted share on net income
of $2.3 million for the quarter ended June 30, 2002. The Company's annualized
return on average assets and average equity were 0.49% and 6.57%,
respectively, for the quarter ended June 30, 2003, compared to 0.72% and
11.10%, respectively, for the quarter ended June 30, 2002.
For the six month period ended June 30, 2003, the Company realized earnings of
$0.38 per diluted share on net income of $4.0 million, as compared to earnings
of $0.43 per diluted share on net income of $4.5 million for the same period
in the prior year. The Company's annualized return on average assets and
average equity were 0.60% and 8.04%, respectively, for the six-month period
ended June 30, 2003, compared to 0.70% and 10.76%, respectively, for the six
months ended June 30, 2002.
In announcing the results of operations for the quarter and the six months
ended June 30, 2003, Charlotte A. Zuschlag, President and Chief Executive
Officer of the Company and the Bank, stated, "We are announcing operating
earnings that are a reflection of a 45-year low in interest rates. This
extended low interest rate environment continues to put pressure on the
Company's interest rate margins. The operating results for the second quarter
reflect higher levels of loan refinancing and repayments. Prepayments are
also affecting the Company's securities portfolio in reducing the overall
asset yields. We are pleased to show growth in our deposit base, which we hope
to continue over the remainder of the year. This Company continues to pursue
strategies to grow earnings despite the current interest rate environment.
One of these strategies has been the Company's real estate joint ventures
which continue to experience success." Ms. Zuschlag finished by stating that
"management is also pleased to announce the Company's recent addition to the
Russell 3000 index which should provide more liquidity to our shareholders.
The addition of our stock to this index is a
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July 18, 2003
reflection of our growth in recent years and an example of how we strive to
enhance shareholder value. As always, management will continue to pursue
strategies of sound growth that will provide a solid investment return to our
shareholders."
Consolidated net income decreased $677,000, or 28.8%, to $1.7 million for the
quarter ended June 30, 2003, compared to $2.3 million for the same period in
the prior year. This decrease was the result of a decrease in net interest
income, after the provision for loan losses, of $1.3 million, partially offset
by an increase in non-interest income of $44,000 and decreases in non-interest
expense and the provision for income taxes of $248,000 and $303,000,
respectively.
Consolidated net income for the six month period ended June 30, 2003, as
compared to the six month period ended June 30, 2002, decreased $424,000, or
9.5%, to $4.0 million from $4.5 million. This decrease was primarily the
result of a decrease in net interest income, after the provision for loan
losses, of $888,000 and an increase in non-interest expense of $93,000,
partially offset by an increase in non-interest income of $404,000 and a
decrease in the provision for income taxes of $153,000.
The Company's total assets increased by $21.9 million, or 1.7%, to $1.34
billion at June 30, 2003, from $1.32 billion at December 31, 2002. This
increase resulted primarily from an increase to securities of $30.6 million,
or 3.5%, to $895.7 million, which was partially offset by a decrease to loans
receivable of $11.2 million, or 3.3%, to $328.1 million.
The Company's total liabilities increased by $16.9 million, or 1.4%, to $1.24
billion at June 30, 2003, from $1.22 billion at December 31, 2002. This
increase in total liabilities was primarily the result of an increase in
deposits of $29.8 million, or 5.1%, which was partially offset by a decrease
in borrowed funds of $14.8 million or 2.4%.
Total stockholders' equity increased $5.0 million, or 5.2%, to $101.4 million
at June 30, 2003, from $96.4 million at December 31, 2002. The increase to
stockholders' equity was the result of increases to additional paid in
capital, retained earnings and accumulated other comprehensive income of
$321,000, $1.8 million and $2.9 million, respectively, as well as decreases to
unearned employee stock ownership plan shares and unvested shares held by
management recognition plan of $314,000 and $14,000, respectively, which were
partially offset by an increase in treasury stock of $299,000. The increase to
accumulated other comprehensive income was a result of the market value
adjustment to the Company's investment securities available for sale
portfolio. Average stockholders' equity to average assets was 7.47%, and book
value per share was $9.64 at June 30, 2003 compared to 6.85% and $9.17 at
December 31, 2002.
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July 18, 2003
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.
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July 18, 2003
ESB FINANCIAL CORPORATION AND SUBSIDIARIES
Financial Highlights
(Dollars in Thousands - Except Per Share Amounts (1))
OPERATIONS DATA:
Three Months Six Months
Ended June 30, Ended June 30,
2003 2002 2003 2002
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<s> <c> <c> <c> <c>
Interest income $15,743 $18,750 $32,491 $37,531
Interest expense 10,740 13,116 21,784 26,383
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Net interest income 5,003 5,634 10,707 11,148
Provision for (recovery of) loan losses 152 (489) (30) (477)
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Net interest income after provision for
(recovery of) loan losses 4,851 6,123 10,737 11,625
Noninterest income 1,675 1,631 3,106 2,702
Noninterest expense 4,612 4,860 9,008 8,915
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Income before provision
for income taxes 1,914 2,894 4,835 5,412
Provision for income taxes 243 546 800 953
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Net income $ 1,671 $ 2,348 $ 4,035 $ 4,459
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Net income per share: (1)
Basic $0.16 $0.23 $0.40 $0.44
Diluted $0.15 $0.23 $0.38 $0.43
Annualized return on average assets 0.49% 0.72% 0.60% 0.70%
Annualized return on average equity 6.57% 11.10% 8.04% 10.76%
FINANCIAL CONDITION DATA:
As of:
06/30/03 12/31/02
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Total assets $1,341,586 $1,319,695
Cash and cash equivalents 17,611 15,133
Total investment securities 895,696 865,135
Loans receivable, net 328,123 339,324
Customer deposits 619,650 589,826
Borrowed funds (includes subordinated debt) 606,748 621,526
Stockholders' equity 101,357 96,371
Book value per share (1) $9.64 $9.17
Average equity to average assets 7.47% 6.85%
Allowance for loan losses to loans receivable 1.19% 1.19%
Non-performing assets to total assets 0.24% 0.28%
(1) Per share amounts have been restated to reflect two six-for-five stock
splits paid May 15, 2003 to the stockholders of record at the close of
business on May 1, 2003 and paid October 25, 2002 to the stockholders
of record at the close of business on September 30, 2002.