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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February 10, 2005 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 2004
Ellwood City, Pennsylvania, February 10, 2005 - ESB Financial Corporation
(NASDAQ: ESBF), the parent company of ESB Bank, today announced record
earnings of $0.94 per diluted share on net income of $9.99 million for the
year ended December 31, 2004, which represents a 17.50% increase in net
income per diluted share as compared to earnings of $0.80 per diluted share
on net income of $8.52 million for the year ended December 31, 2003. The
Company's return on average assets and average equity were 0.73% and 10.38%,
respectively, for the year ended December 31, 2004.
For the three months ended December 31, 2004, the Company announced earnings
of $0.25 per diluted share on net income of $2.59 million, which represents a
13.64% increase in net income per diluted share as compared to earnings of
$0.22 per diluted share on net income of $2.32 million for the quarter ended
December 31, 2003. The Company's annualized return on average assets and
average equity were 0.75% and 10.57%, respectively, for the quarter ended
December 31, 2004.
Commenting on the quarter and year end results, Charlotte A. Zuschlag,
President and Chief Executive Officer of the Company and the Bank, stated,
"We are very pleased with the strong improvement to the Company's net interest
margin in 2004 as well as our ability to continue to control operating
expenses both of which assisted in the record earnings achieved in 2004. We
are also pleased to announce that our pending merger with PHSB Financial
Corporation, the holding company for Peoples Home Savings Bank, has been
approved by all required regulatory agencies and the stockholders of ESBF and
PHSB. The upcoming merger is expected to close on Friday, February 11, 2005.
We are very excited about the opportunities and increased market exposure that
this merger will bring to the Company."
Consolidated net income for the year ended December 31, 2004 increased $1.47
million or 17.20% to $9.99 million from $8.52 million, as compared to the year
ended December 31, 2003. This net increase was a result of an increase in
net interest income of $3.30 million after the current year provision for loan
losses of $206,000, as compared to a recovery of loan losses of $106,000 for
the prior year, which is partially offset by a decrease in noninterest income
of $831,000 and an increase in noninterest expense of $980,000. The $831,000
decrease to noninterest income was primarily due to a decrease to the gain on
Press Release
Page 2 of 3
February 10, 2005
the sale of loans of approximately $404,000 and a decrease in the gain on the
sale of securities available for sale of approximately $356,000 as well as a
decline in the income generated by the Company's real estate joint ventures,
net of minority interest, of approximately $321,000. Together, declines in
these areas were partially offset by an increase in fees and service charges
of approximately $652,000. The $980,000 increase in noninterest expense was
primarily related to an increase on the loss on early extinguishment of debt
of approximately $629,000 along with increases in the Company's expenses for
health benefits as well as expenses associated with the Company's bonus
programs, including the Company's Management Recognition Stock Plans.
Consolidated net income for the quarter ended December 31, 2004 increased
$267,000 or 11.49% to $2.59 million from $2.32 million, as compared to the
quarter ended December 31, 2003. This net increase was a result of an
increase in net interest income of $676,000 after the current quarter recovery
of loan losses of $91,000, as compared to a provision for loan losses of
$161,000 for the quarter ended December 31, 2003, which is partially offset
by a decrease in noninterest income of $146,000 and an increase in noninterest
expense of $147,000. The $146,000 decrease to noninterest income was
primarily due to a decrease in the gain on the sale of securities available
for sale of approximately $73,000 as well as a decline in the income
generated by the Company's real estate joint ventures, net of minority
interest, of approximately $132,000. The declines in these areas were
partially offset by an increase in fees and service charges of approximately
$128,000. The $147,000 increase in noninterest expense was primarily related
to an increase associated with the Company's bonus programs, including the
Company's Management Recognition Stock Plans, partially offset by a decline
in other noninterest expense of approximately $102,000.
The Company's consolidated total assets increased $28.7 million or 2.10% to
$1.4 billion at December 31, 2004, from $1.4 billion at December 31, 2003.
Securities increased $858,000 or 0.09% to $929.8 million and net loans
receivable increased $21.0 million or 6.50% to $343.5 million. Total deposits
decreased $22.7 million or 3.76% to $580.4 million and borrowed funds
increased $50.3 million or 7.71% to $702.8 million, as compared to December
31, 2003.
Total stockholders' equity was $97.8 million or 7.01% of total assets, and
book value per share was $9.16 at December 31, 2004 compared to $96.9 million
or 7.09% of total assets, and book value per share of $8.98 at December 31,
2003.
The Company also announced that its annual meeting of stockholders will be
held on Wednesday, April 20, 2005 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, 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.
Press Release
Page 3 of 3
February 10, 2005
ESB FINANCIAL CORPORATION AND SUBSIDIARIES
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Financial Highlights
(Dollars in Thousands - Except Per Share Amounts)
OPERATIONS DATA:
- ---------------- Year Ended Three Months
December 31, Ended December 31,
2004 2003 2004 2003
---- ---- ---- ----
<s> <c> <c> <c> <c>
Interest income $60,798 $62,467 $15,637 $15,328
Interest expense 35,569 40,852 9,198 9,313
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Net interest income 25,229 21,615 6,439 6,015
Provision for (recovery of) loan losses 206 (106) (91) 161
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Net interest income after provision for
(recovery of) loan losses 25,023 21,721 6,530 5,854
Noninterest income 6,960 7,791 1,700 1,846
Noninterest expense 20,157 19,177 4,990 4,843
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Income before provision for income taxes 11,826 10,335 3,240 2,857
Provision for income taxes 1,836 1,811 649 533
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Net income $ 9,990 $ 8,524 $ 2,591 $ 2,324
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Earnings per share:
Basic $0.98 $0.84 $0.25 $0.23
Diluted $0.94 $0.80 $0.25 $0.22
Annualized return on average assets 0.73% 0.63% 0.75% 0.68%
Annualized return on average equity 10.38% 8.75% 10.57% 9.68%
FINANCIAL CONDITION DATA:
- ------------------------- 12/31/04 12/31/03
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Total assets $1,394,515 $1,365,780
Cash and cash equivalents 17,703 15,330
Total investment securities 929,794 928,936
Loans receivable, net 343,524 322,454
Customer deposits 580,346 603,046
Borrowed funds (includes subordinated debt) 702,773 652,489
Stockholders' equity 97,801 96,871
Book value per share $9.16 $8.98
Average equity to average assets 6.99% 7.22%
Allowance for loan losses to loans receivable 1.06% 1.17%
Non-performing assets to total assets 0.20% 0.22%