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 20, 2004 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 2004 EARNINGS
Ellwood City, Pennsylvania, July 20, 2004 - ESB Financial Corporation (Nasdaq:
ESBF), the parent company of ESB Bank, today announced earnings for the
quarter ended June 30, 2004 of $0.22 per diluted share on net income of $2.4
million, which represents a 46.7% increase in net income per diluted share as
compared to earnings of $0.15 per diluted share on net income of $1.7 million
for the quarter ended June 30, 2003. The Company's annualized return on
average assets and average equity were 0.69% and 10.25%, respectively, for
the quarter ended June 30, 2004, compared to 0.49% and 6.57%, respectively,
for the quarter ended June 30, 2003.
For the six month period ended June 30, 2004, the Company realized earnings of
$0.45 per diluted share on net income of $4.8 million, which represents an
18.4% increase in net income per diluted share as compared to earnings of
$0.38 per diluted share on net income of $4.0 million for the same period in
the prior year. The Company's annualized return on average assets and average
equity were 0.70% and 9.98%, respectively, for the six-month period ended June
30, 2004, compared to 0.60% and 8.04%, respectively, for the six months ended
June 30, 2003.
In announcing the results of operations for the quarter and the six months
ended June 30, 2004, Charlotte A. Zuschlag, President and Chief Executive
Officer of the Company and the Bank, stated, "We are pleased with the second
quarter and year to date results and the continued improvement in our net
interest margin over last year. Our improved margin is due in part to our
decision to restructure and call a significant portion of the Company's fixed
rate trust preferred securities and a decline in repayments and amortization
of premiums on our investment portfolio. The Company remains focused on
improving net interest and non-interest income, while pursuing strategies to
grow and provide a sound investment return to our shareholders."
Consolidated net income increased $691,000, or 41.4%, to $2.4 million for the
quarter ended June 30, 2004, compared to $1.7 million for the same period in
the prior year. This increase was the result of an increase in net interest
income, after the provision for loan losses, of $1.1 million and a decrease in
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July 20, 2004
non-interest expense of $135,000, partially offset by a decrease in
non-interest income of $376,000 and an increase the provision for income
taxes of $218,000. Net interest income increased in the second quarter
primarily due to lower interest expense on deposits and borrowings, partially
offset by declines in interest income from loans and securities. Included in
the decrease of non-interest income were decreases in fees from the sale of
loans, gains on the sale of available for sale securities and income from
joint ventures of $136,000, $331,000 and $286,000, respectively, partially
offset by increases to fees and service charges and prepayment fees on
mortgage loans of $130,000 and $217,000, respectively.
Consolidated net income for the six month period ended June 30, 2004, as
compared to the six month period ended June 30, 2003, increased $765,000, or
19.0%, to $4.8 million from $4.0 million. This increase was primarily the
result of an increase in net interest income, after the provision for loan
losses, of $1.7 million and an increase in non-interest income of $128,000,
partially offset by an increase in non-interest expense and provision for
income taxes of $895,000 and $182,000, respectively. The increase in net
interest income after the provision for loan losses for the period ended June
30, 2004 was primarily the result of decreases in interest expense on deposits
and borrowings, partially offset by declines in interest income from loans and
securities and an increase in provision for loan losses of $270,000. The
decrease in interest expense was enhanced by the call of a significant
portion of the Company's trust preferred securities early in the first quarter
of 2004. Included in the increase to non-interest expense was a charge of
approximately $844,000 for the deferred debt issuance costs associated with
the redemption of a portion of the Company's subordinated debt in connection
with the call of the trust preferred securities.
The Company's total assets decreased by $4.0 million, or 0.3%, to $1.4 billion
at June 30, 2004. This decrease resulted primarily from a decrease in
securities of $23.8 million, or 2.6%, to $905.1 million, which was partially
offset by increases in cash and cash equivalents, loans receivable, Federal
Home Loan Bank Stock and prepaid expenses and other assets of $3.6 million, or
23.2%, $8.7 million, or 2.7%, $1.5 million, or 5.0%, and $5.4 million, or
87.5%, respectively. The Company's total liabilities increased by $3.9
million, or 0.3%, to $1.3 billion at June 30, 2004. The increase in total
liabilities was primarily the result of an increase in borrowed funds of $21.6
million, or 3.3%, partially offset by a decrease in deposits of $17.4 million,
or 2.9%. Total stockholders' equity decreased $7.9 million, or 8.1%, to $89.0
million at June 30, 2004, from $96.9 million at December 31, 2003. The
decrease to stockholders' equity was the result of a decrease in accumulated
other comprehensive income of $9.5 million as well as increases in treasury
stock and unvested shares held by management recognition plan of $892,000 and
$181,000, respectively. These decreases were partially offset by increases to
additional paid in capital and retained earnings of $403,000 and $1.8 million,
respectively, as well as decreases in unearned employee stock ownership plan
shares of $498,000. 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 7.03%, and book value per share was $8.31 at June 30, 2004 compared to
7.22% and $8.98 at December 31, 2003.
ESB Financial Corporation is the parent holding company of ESB Bank, and
offers a wide variety of financial products and services through 16 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.
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July 20, 2004
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 20, 2004
ESB FINANCIAL CORPORATION AND SUBSIDIARIES
Financial Highlights
(Dollars in Thousands - Except Per Share Amounts)
OPERATIONS DATA:
Three Months Six Months
Ended June 30, Ended June 30,
2004 2003 2004 2003
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<s> <c> <c> <c> <c>
Interest income $14,819 $15,743 $30,019 $32,491
Interest expense 8,598 10,740 17,328 21,784
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Net interest income 6,221 5,003 12,691 10,707
Provision for (recovery of) loan losses 221 152 240 (30)
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Net interest income after provision for
(recovery of) loan losses 6,000 4,851 12,451 10,737
Noninterest income 1,634 2,010 3,696 3,568
Noninterest expense 4,811 4,947 10,365 9,470
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Income before provision
for income taxes 2,823 1,914 5,782 4,835
Provision for income taxes 461 243 982 800
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Net income $ 2,362 $ 1,671 $ 4,800 $ 4,035
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Net income per share:
Basic $0.23 $0.16 $0.47 $0.40
Diluted $0.22 $0.15 $0.45 $0.38
Annualized return on average assets 0.69% 0.49% 0.70% 0.60%
Annualized return on average equity 10.25% 6.57% 9.98% 8.04%
FINANCIAL CONDITION DATA:
As of:
June 30, December 31,
2004 2003
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Total assets $1,361,784 $1,365,780
Cash and cash equivalents 18,881 15,330
Total investment securities 905,134 928,936
Loans receivable, net 331,185 322,454
Customer deposits 585,618 603,046
Borrowed funds (includes subordinated debt) 674,047 652,489
Stockholders' equity 89,019 96,871
Book value per share $8.31 $8.98
Average equity to average assets 7.03% 7.22%
Allowance for loan losses to loans receivable 1.13% 1.17%
Non-performing assets to total assets 0.22% 0.22%