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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October 24, 2005 CHARLES P. EVANOSKI
GROUP SENIOR VICE PRESIDENT
CHIEF FINANCIAL OFFICER
(724) 758-5584
FOR IMMEDIATE RELEASE
_____________________
ESB FINANCIAL CORPORATION REPORTS
THIRD QUARTER 2005 EARNINGS
Ellwood City, Pennsylvania, October 24, 2005 - ESB Financial Corporation
(Nasdaq: ESBF), the parent company of ESB Bank, today announced net income
for the quarter ended September 30, 2005 of $2.9 million, an increase of 11.2%
compared to net income of $2.6 million for the quarter ended September 30,
2004, and earnings of $0.22 per diluted share a 12.0% decrease in net income
per diluted share as compared to earnings of$0.25 per diluted share for the
quarter ended September 30, 2004. The increase in net income and the decline
in earnings per share for the third quarter of 2005, as compared to the
2004 quarter were primarily due to the acquisition of PHSB Financial
Corporation (PHSB) on February 11, 2005. The Company's annualized return on
average assets and average equity were 0.63% and 8.61%, respectively, for the
quarter ended September 30, 2005, compared to 0.75% and 11.02%, respectively,
for the quarter ended September 30, 2004.
For the nine month period ended September 30, 2005, the Company reported net
income of $9.0 million, an increase of 21.2% compared to net income of $7.4
million for the nine months ended September 30, 2004, and earnings of $0.70
per diluted share for the nine months ended September 30, 2005 and 2004. The
Company's annualized return on average assets and average equity were 0.69%
and 9.31%, respectively, for the nine month period ended September 30, 2005,
compared to 0.72% and 10.32%, respectively, for the nine months ended
September 30, 2004.
In announcing the results of operations for the quarter and the nine months
ended September 30, 2005, Charlotte A. Zuschlag, President and Chief Executive
Officer of the Company and the Bank, stated, "The decrease in per share
earnings for the quarter was primarily due to a decrease in the Company's
net interest margin. The Company remains focused on improving net interest
and noninterest income, while pursuing strategies to grow and provide a sound
investment return to our shareholders. This focus is exemplified this year
with the efforts of the Company's management and employees to coordinate and
complete the successful integration of PHSB's operations, which was acquired
on February 11, 2005, into the operations of ESB Financial Corporation."
Press Release
Page 2 of 4
October 24, 2005
Consolidated net income increased $291,000, or 11.2%, to $2.9 million for the
quarter ended September 30, 2005, compared to $2.6 million for the same period
in the prior year. This increase was the result of increases in net interest
income of $1.5 million and noninterest income of $194,000, which were partially
offset by increases in noninterest expense, provisions for loan losses, and
provision for income taxes of $1.0 million, $10,000 and $334,000, respectively.
Net interest income increased in the third quarter primarily due to an
increase in interest income from loans and securities, partially offset by an
increase in interest expense on deposits and borrowings. Noninterest income
and noninterest expense were affected by increases due primarily to the
acquisition of PHSB's operations. Included in the increase in noninterest
income were increases in fees and service charges of $394,000 and securities
gains of $129,000, which were partially offset by decreases in other
noninterest income of $330,000. Included in the increase of noninterest
expense were increases in compensation and employee benefits, premises and
equipment, data processing expense and other expense of $416,000, $150,000,
$123,000 and $294,000, respectively. Other noninterest expense was also
affected by an increase in the amortization of the core deposit intangible
recorded in connection with the acquisition of PHSB of $195,000.
Consolidated net income for the nine month period ended September 30, 2005,
as compared to the nine month period ended September 30, 2004, increased $1.6
million, or 21.2%, to $9.0 million for the period ended September 30, 2005
from $7.4 million for the same period in the prior year. This increase
was primarily the result of an increase in net interest income, after the
provision for loan losses, of $4.7 million, offset by a decrease in noninterest
income of $442,000 and increases in noninterest expense and provision for
income taxes of $2.1 million and $556,000, respectively. The increase in net
interest income after the provision for loan losses for the period ended
September 30, 2005 was primarily the result of increases in interest income
from loans and securities and a decrease in the provision for loan losses,
which were partially offset by increases in interest expense on deposits
and borrowings. The decrease in noninterest income was primarily the result
of decrease in gains on sales of securities and joint venture income of
$814,000 and $434,000, respectively, which were partially offset by increase
in fees and service charges and other income of $717,000 and $117,000.
Contributing to the increase to noninterest expense were increases in
compensation and employee benefits, premises and equipment, data processing,
amortization of core deposit intangible and other expenses of $1.0 million,
$487,000, $245,000, $491,000 and $748,000, respectively. Partially offsetting
the increase was a decrease of $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 trust preferred securities in 2004.
The Company's total assets increased by $437.4 million, or 31.4%, to $1.8
billion at September 30, 2005 from $1.4 billion at December 31, 2004. This
increase was primarily the result of the acquisition of PHSB during the first
quarter of 2005. Through this merger, the Company acquired $331.0 million in
assets, $146.0 million in loans and $231.0 million in deposits. The $437.5
million increase in assets resulted primarily from increases in loans
receivable of $175.0 million, or 50.9%, to $518.5 million, securities of
$195.4 million, or 21.0%, to $1.1 billion along with a $34.6 million increase
in goodwill from the acquisition. The Company's total liabilities increased
by $404.4 million, or 31.2%, to $1.7 billion at September 30, 2005. This
increase in total liabilities was primarily the result of an increase in
deposits of $249.3 million, or 43.0%, to $829.6 million along with an increase
in borrowed funds of $151.6 million, or 21.6%, to $854.3 million. Total
stockholders' equity increased $33.0 million, or 33.7%, to $130.8 million at
September 30, 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 of $8.7 million. Average stockholders' equity to
average assets was 7.40%, and book value per share was $9.82 at September 30,
2005 compared to 6.99% and $9.16 at December 31, 2004.
Press Release
Page 3 of 4
October 24, 2005
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
andoperations 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 that 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 4 of 4
October 24, 2005
ESB FINANCIAL CORPORATION AND SUBSIDIARIES
Financial Highlights
(Dollars in Thousands - Except Per Share Amounts)
OPERATIONS DATA:
Three Months Nine Months
Ended September 30, Ended September 30,
2005 2004 2005 2004
_________ _________ ________ ________
Interest income $ 20,760 $ 15,143 $ 58,837 $ 45,162
Interest expense 13,169 9,042 35,613 26,370
________ _______ _______ ________
Net interest income 7,591 6,101 23,224 18,792
Provision for (recovery of) loan
losses 67 57 69 298
________ _______ _______ ________
Net interest income after provision
for (recovery of) loan losses 7,524 6,044 23,155 18,494
Noninterest income 1,756 1,562 4,814 5,257
Noninterest expense 5,850 4,801 17,257 15,164
________ _______ _______ ________
Income before provision
for income taxes 3,430 2,805 10,712 8,587
Provision for income taxes 539 205 1,743 1,187
________ _______ _______ _______
Net income $ 2,891 $ 2,600 $ 8,969 $ 7,400
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Net income per share:
Basic $0.22 $0.26 $0.72 $0.73
Diluted $0.22 $0.25 $0.70 $0.70
Annualized return on average assets 0.63% 0.75% 0.69% 0.72%
Annualized return on average equity 8.61% 11.02% 9.31% 10.32%
FINANCIAL CONDITION DATA:
As of:
September 30, December 31,
2005 2004
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Total assets $1,831,905 $1,394,515
Cash and cash equivalents 23,867 17,703
Total investment securities 1,125,190 929,794
Loans receivable, net 518,501 343,524
Customer deposits 829,613 580,346
Borrowed funds (includes subordinated debt) 854,335 702,773
Stockholders' equity 130,754 97,801
Book value per share $9.82 $9.16
Average equity to average assets 7.40% 6.99%
Allowance for loan losses to loans receivable 0.86% 1.06%