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 18, 2006 CHARLES P. EVANOSKI
GROUP SENIOR VICE PRESIDENT
CHIEF FINANCIAL OFFICER
(724) 758-5584
FOR IMMEDIATE RELEASE
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ESB FINANCIAL CORPORATION ANNOUNCES
FIRST QUARTER EARNINGS
Ellwood City, Pennsylvania, April 18, 2006 - ESB Financial
Corporation (Nasdaq: ESBF), the parent company of ESB Bank, today
announced earnings of $0.22 per diluted share on net income of
$2.8 million for the quarter ended March 31, 2006, compared to
earnings of $0.24 per diluted share on net income of $2.9 million
for the quarter ended March 31, 2005. The Company's annualized
return on average assets and average equity were 0.60% and 8.88%,
respectively, for the quarter ended March 31, 2006.
Charlotte A. Zuschlag, President and Chief Executive Officer of
the Company, stated, "The interest rate environment and the
inversion of the yield curve continued to offer challenges to the
financial services industry in the first quarter of 2006. The
Company's earnings are consistent with management's expectations
of operating within this rate environment. 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."
Net income for the first quarter of 2006, as compared to the
first quarter of 2005, decreased slightly by $66,000 due to an
increase of $373,000 in noninterest expense partially offset by
increases to net interest income after provision for (recovery
of) loan losses and noninterest income of $124,000 and $68,000
and a decrease in provision for income taxes of $115,000. The
increase in noninterest expense resulted primarily from increases
to compensation and employee benefits of $317,000. This increase
is primarily related to the employees added as a result of the
acquisition of PHSB Financial Corporation (PHSB) on February 11,
2005. The increase to net interest income after the provision for
(recovery of) loan losses was primarily the result of increases
in interest income of $4.7 million, partially offset by increases
in interest expense and provision for loan losses of $4.4 million
and $209,000, respectively. The increase in non interest income
was primarily the result of an increase in fees and service
charges of $215,000, partially offset by decreases in income from
real estate joint ventures and other income of $62,000 and
$96,000, respectively. The increase in fees and service charges
is partially related to the acquisition of PHSB. PHSB's
operations were included in the Company's results of operations
for a partial quarter in 2005.
Press Release
Page 2 of 3
April 18, 2006
The Company's total assets increased by $16.9 million, or 0.91%,
during the quarter to $1.9 billion at March 31, 2006. This
increase resulted primarily from increases to securities
available for sale of $12.9 million, or 1.2%, to $1.1 billion and
loans receivable of $12.1 million, or 2.2%, to $552.4 million.
The Company's total liabilities increased by $21.5 million, or
1.2%, to $1.7 billion at March 31, 2006. This increase in total
liabilities was primarily the result of an increase in borrowed
funds of $37.5 million, or 4.3%, to $906.7 million, partially
offset by a decrease to deposits of $14.9 million, or 1.8%, to
$819.6 million. Total stockholders' equity decreased $4.6
million, or 3.6%, to $122.3 million at March 31, 2006, from
$126.9 million at December 31, 2005. The decrease to
stockholders' equity was primarily the result of an increases in
accumulated other comprehensive loss and treasury stock of $4.6
million and $1.6 million, respectively, partially offset by an
increase in retained earnings of $1.2 million. Average
stockholders' equity to average assets was 6.79%, and book value
per share was $9.32 at March 31, 2006 compared to 7.28% and $9.58
at December 31, 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 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 18, 2006
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,
2006 2005
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Interest income $ 22,455 $ 17,722
Interest expense 14,646 10,246
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Net interest income 7,809 7,476
Provision for (recovery of) loan losses 193 (16)
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Net interest income after
provision for (recovery of) loan losses 7,616 7,492
Noninterest income 1,378 1,310
Noninterest expense 5,717 5,344
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Income before provision
for income taxes 3,277 3,458
Provision for income taxes 482 597
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Net income $ 2,795 $ 2,861
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Net income per share:
Basic $0.22 $0.24
Diluted $0.22 $0.24
Annualized return on average assets 0.60% 0.73%
Annualized return on average equity 8.88% 9.88%
FINANCIAL CONDITION DATA:
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As of:
03/31/06 12/31/05
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Total assets $1,869,633 $1,852,779
Cash and cash equivalents 17,607 28,215
Total investment securities 1,129,955 1,117,063
Loans receivable, net 552,383 540,277
Customer deposits 819,600 834,530
Borrowed funds (includes subordinated debt) 906,720 869,242
Stockholders' equity 122,258 126,877
Book value per share $9.32 $9.58
Average equity to average assets 6.79% 7.28%
Allowance for loan losses to loans receivable 0.82% 0.86%
Nonperforming assets to total assets 0.19% 0.27%