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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October 21, 2003 CHARLES P. EVANOSKI
GROUP SENIOR VICE PRESIDENT
CHIEF FINANCIAL OFFICER
(724) 758-5584
FOR IMMEDIATE RELEASE
_____________________
ESB FINANCIAL CORPORATION REPORTS
THIRD QUARTER 2003 EARNINGS
Ellwood City, Pennsylvania, October 21, 2003 - ESB Financial Corporation
(Nasdaq: ESBF), the parent company of ESB Bank, F.S.B., today announced
earnings for the quarter ended September 30, 2003 of $0.20 per diluted share
on net income of $2.2 million, as compared to earnings of $0.22 per diluted
share on net income of $2.3 million for the quarter ended September 30, 2002.
The Company's annualized return on average assets and average equity were
0.64% and 9.33%, respectively, for the quarter ended September 30, 2003,
compared to 0.70% and 10.73%, respectively, for the quarter ended September
30, 2002.
For the nine month period ended September 30, 2003, the Company realized
earnings of $0.58 per diluted share on net income of $6.2 million, as compared
to earnings of $0.65 per diluted share on net income of $6.7 million for the
same period in the prior year. The Company's annualized return on average
assets and average equity were 0.61% and 8.44%, respectively, for the nine
month period ended September 30, 2003, compared to 0.70% and 10.36%,
respectively, for the nine months ended September 30, 2002.
In announcing the results of operations for the quarter and the nine months
ended September 30, 2003, Charlotte A. Zuschlag, President and Chief Executive
Officer of the Company and the Bank, stated, "We are announcing operating
earnings that continue to reflect the sustained low interest rate environment.
This unprecedented interest rate environment continues to put pressure on the
Company's interest rate margins as loan refinancing and repayments of both
loans and securities continue to reduce overall asset yields. Despite the
challenges created by the current interest rate environment, the Company is
committed to its core values, one of which is customer satisfaction, which is
reflected in our continued deposit growth throughout the period. The Company
has an unwavering focus on pursuing strategies to grow earnings while
preserving asset quality and maintaining shareholder value."
Press Release
Page 2 of 3
October 21, 2003
Consolidated net income decreased $105,000, or 4.6%, to $2.2 million for the
quarter ended September 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 recovery of loan losses, of $310,000 and an increase in
non-interest expense of $572,000, partially offset by an increase in
non-interest income of $757,000 and a decrease in the provision for income
taxes of $20,000.
Consolidated net income for the nine month period ended September 30, 2003, as
compared to the nine month period ended September 30, 2002, decreased $530,000,
or 7.9%, to $6.2 million from $6.7 million. This decrease was primarily the
result of a decrease in net interest income, after the recovery of loan losses,
of $1.2 million and an increase in non-interest expense of $667,000, partially
offset by an increase in non-interest income of $1.2 million and a decrease in
the provision for income taxes of $174,000.
The Company's total assets increased by $38.1 million, or 2.9%, to $1.4 billion
at September 30, 2003, from $1.3 billion at December 31, 2002. This increase
resulted primarily from an increase in securities available for sale of $54.1
million, or 6.3%, to $919.2 million, which was partially offset by a decrease
in loans receivable, net of $18.8 million, or 5.5%, to $320.5 million.
The Company's total liabilities increased by $37.2 million, or 3.0%, to $1.3
billion at September 30, 2003, from $1.2 billion at December 31, 2002. This
increase in total liabilities was primarily the result of increases in deposits
and borrowed funds of $15.6 million, or 2.6%, and $21.7 million, or 3.5%,
respectively.
Total stockholders' equity increased $931,000, or 1.0%, to $97.3 million at
September 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
and retained earnings of $1.7 million and $2.4 million, respectively, as well
as a decrease to treasury stock of $2.8 million, respectively, which were
partially offset by an increase in unearned employee stock ownership plan
shares of $4.4 million and a decrease in accumulated other comprehensive income
of $1.5 million. The decrease 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 7.27%, and book value per share was $9.02 at September 30, 2003, compared
to 6.85% and $9.16 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
October 21, 2003
ESB FINANCIAL CORPORATION AND SUBSIDIARIES
Financial Highlights
(Dollars in Thousands - Except Per Share Amounts (1))
OPERATIONS DATA:
Three Months Nine Months
Ended September 30, Ended September, 30,
2003 2002 2003 2002
_________ _________ _________ _________
Interest income $14,648 $18,082 $47,139 $55,613
Interest expense 9,756 12,746 31,540 39,129
--------- --------- --------- ---------
Net interest income 4,892 5,336 15,599 16,484
Recovery of loan losses (237) (103) (267) (580)
Net interest income after --------- --------- --------- ---------
recovery of loan losses 5,129 5,439 15,866 17,064
Noninterest income 2,008 1,251 5,114 3,953
Noninterest expense 4,494 3,922 13,503 12,836
Income before provision --------- --------- --------- ---------
for income taxes 2,643 2,768 7,477 8,181
Provision for income taxes 478 498 1,278 1,452
--------- --------- --------- ---------
Net income $2,165 $2,270 $6,199 $6,729
========= ========= ========= =========
Net income per share: (1)
Basic $0.21 $0.22 $0.61 $0.66
Diluted $0.20 $0.22 $0.58 $0.65
Annualized return on
average assets 0.64% 0.70% 0.61% 0.70%
Annualized return on
average equity 9.33% 10.73% 8.44% 10.36%
FINANCIAL CONDITION DATA:
As of:
09/30/03 12/31/02
________ ________
Total assets $1,357,795 $1,319,695
Cash and cash equivalents 16,684 15,133
Total investment securities 919,235 865,135
Loans receivable, net 320,539 339,324
Customer deposits 605,376 589,826
Borrowed funds (includes subordinated debt) 643,196 621,526
Stockholders' equity 97,302 96,371
Book value per share (1) $9.02 $9.16
Average equity to average assets 7.27% 6.85%
Allowance for loan losses to loans receivable 1.13% 1.19%
Non-performing assets to total assets 0.23% 0.28%
(1) Per share amounts have been restated to reflect a six-for-five stock
split paid May 15, 2003 to the stockholders of record at the close of
business on May 1, 2003.