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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April 19, 2005 CHARLES P. EVANOSKI
GROUP SENIOR VICE RESIDENT
CHIEF FINANCIAL OFFICER
(724) 758-5584
FOR IMMEDIATE RELEASE
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ESB FINANCIAL CORPORATION ANNOUNCES
FIRST QUARTER EARNINGS
Ellwood City, Pennsylvania, April 19, 2005 - ESB Financial Corporation
(Nasdaq: ESBF), the parent company of ESB Bank, today announced earnings of
$0.24 per diluted share on net income of $2.9 million for the quarter ended
March 31, 2005, which represents an increase of 4.3% in net income per diluted
share, and a 17.4% increase in net income, as compared to earnings of $0.23
per diluted share on net income of $2.4 million for the same period in 2004.
The Company's annualized return on average assets and average equity were
0.73% and 9.88%, respectively, for the quarter ended March 31, 2005.
Charlotte A. Zuschlag, President and Chief Executive Officer of the Company,
stated, "The Board of Directors, senior management and I are pleased with the
strong improvement to the net interest income which is a reflection of the
Company's commitment to internal growth as well as growth through acquisitions.
We are also very pleased with the efforts of the Company's management and
employees to coordinate and complete the successful integration of PHSB
Financial Corporation's operations, which was acquired on February 11, 2005,
into the operations of ESB Financial Corporation. The Company continues to
pursue strategies to grow and provide a sound investment return to our
shareholders."
Net income for the first quarter of 2005, as compared to the first quarter of
2004, increased by $423,000 due to an increase of $1.0 million in net interest
income after provision for loan losses and a decrease in noninterest expense
of $211,000. The decrease in noninterest expense was primarily due a decrease
in the loss on early extinguishment of debt of $844,000 which was partially
offset by increases in salaries and personnel costs, premises and occupancy
costs and advertising of $242,000, $133,000 and $71,000, respectively. The
increase to net interest income was partially offset by a decrease in
noninterest income of $752,000 along with an increase in the provision for
income taxes of $76,000. The $752,000 decrease in noninterest income was
primarily the result of decreases in securities gains of $943,000 and joint
venture income of $116,000 partially offset by an increase in service charges
of $213,000.
Press Release
Page 2 of 3
April 19, 2005
The Company's total assets increased by $383.7 million, or 27.5%, to $1.8
billion at March 31, 2005 from $1.4 billion at December 31, 2004. This
increase was primarily the result of the acquisition of PHSB Financial
Corporation during the first quarter. Through this merger, the Company
acquired $331.0 million in assets, $146.0 million in loans and $231.0 million
in deposits. The $383.7 million increase in assets resulted primarily from
increases in loans receivable of $153.6 million, or 44.7%, to $497.1 million,
securities of $164.8 million, or 17.7%, to $1.1 billion along with a $34.0
million increase in goodwill from the acquisition. The Company's total
liabilities increased by $352.2 million, or 27.2%, to $1.7 billion at March
31, 2005. This increase in total liabilities was primarily the result of an
increase in deposits of $245.5 million, or 42.3%, to $825.8 million along with
an increase in borrowed funds of $97.9 million, or 13.9%, to $800.7 million.
Total stockholders' equity increased $31.5 million, or 32.2%, to $129.3
million at March 31, 2005, from $97.8 million at December 31, 2004. The
increase to stockholders' equity was primarily the result of common stock (and
the related paid-in capital) issued in connection with the acquisition of
PHSB in the amount of $39.5 million, partially offset by a decrease in
accumulated other comprehensive income (loss) of $8.6 million. Average
stockholders' equity to average assets was 7.35%, and book value per share
was $9.57 at March 31, 2005 compared to 6.99% and $9.16 at December 31, 2004.
ESB Financial Corporation is the parent holding company of ESB Bank and offers
a wide variety of financial products and services through 23 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 19, 2005
ESB FINANCIAL CORPORATION AND SUBSIDIARIES
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Financial Highlights
(Dollars in Thousands - Except Per Share Amounts)
OPERATIONS DATA:
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Three Months
Ended March 31,
2005 2004
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Interest income $ 17,722 $ 15,200
Interest expense 10,246 8,729
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Net interest income 7,476 6,471
(Recovery of) provision for loan losses (16) 19
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Net interest income after
(recovery of) provision for loan losses 7,492 6,452
Noninterest income 1,310 2,062
Noninterest expense 5,344 5,555
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Income before provision
for income taxes 3,458 2,959
Provision for income taxes 597 521
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Net income $ 2,861 $ 2,438
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Net income per share:
Basic $0.24 $0.24
Diluted $0.24 $0.23
Annualized return on average assets 0.73% 0.71%
Annualized return on average equity 9.88% 9.73%
FINANCIAL CONDITION DATA:
- ------------------------ As of:
03/31/05 12/31/04
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Total assets $1,778,255 $1,394,515
Cash and cash equivalents 27,048 17,703
Total investment securities 1,094,606 929,794
Loans receivable, net 497,107 343,524
Customer deposits 825,817 580,346
Borrowed funds (includes subordinated debt) 800,684 702,773
Stockholders' equity 129,300 97,801
Book value per share $9.57 $9.16
Average equity to average assets 7.35% 6.99%
Allowance for loan losses to loans receivable 1.02% 1.06%
Nonperforming assets to total assets 0.25% 0.26%