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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July 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 REPORTS
SECOND QUARTER 2006 EARNINGS
Ellwood City, Pennsylvania, July 18, 2006 - ESB Financial
Corporation (Nasdaq: ESBF), the parent company of ESB Bank,
today announced earnings for the quarter ended June 30, 2006
of $0.23 per diluted share on net income of $3.0 million as
compared to earnings of $0.24 per diluted share on net income
of $3.2 million for the quarter ended June 30, 2005, a 4.2%
decrease in net income per diluted share. The Company's
annualized return on average assets and average equity were
0.64% and 10.29%, respectively, for the quarter ended June 30,
2006, compared to 0.71% and 9.51%, respectively, for the
quarter ended June 30, 2005.
For the six month period ended June 30, 2006, the Company
realized earnings of $0.45 per diluted share on net income of
$5.8 million compared to earnings of $0.48 per diluted share
on net income of $6.1 million for the same period in the prior
year a 6.3% decrease in net income per diluted share. The
Company's annualized return on average assets and average
equity were 0.62% and 9.56%, respectively, for the six-month
period ended June 30, 2006, compared to 0.72% and 9.68%,
respectively, for the six months ended June 30, 2005.
Charlotte A. Zuschlag, President and Chief Executive Officer
of the Company, stated, "The financial services industry
continued to be challenged by the interest rate environment
and the flattening of the yield curve during the second
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."
Consolidated net income decreased $207,000 to $3.0 million for
the quarter ended June 30, 2006, compared to $3.2 million for
the same period in the prior year. This decrease was the
result of a decrease in net interest income of $766,000 and an
increase to the provision for loan losses of $84,000,
partially offset by a decrease in non-interest expense of
$218,000, an increase in non-interest income of $353,000, and
a slight decrease to the provision for income taxes of
$72,000. Net interest income decreased in the second quarter
primarily due to increases in interest expense on deposits and
Press Release
Page 2 of 3
July 18, 2006
borrowings of $3.8 million, partially offset by an increase in
interest income of $3.1 million. Included in the increase in
non-interest income was an increase in fees and service
charges, net gain on sale of loans and net gain on sale of
securities available for sale of $77,000, $169,000 and
$113,000, respectively. The gain on the sale of loans resulted
from the Company's decision to sell its credit card portfolio
during the second quarter of 2006. Included in the decrease
of non-interest expense were decreases in data processing,
minority interest, related to the Company's interest in joint
ventures, and other expenses of $62,000, $58,000 and $120,000,
respectively.
Consolidated net income for the six month period ended June
30, 2006, as compared to the six month period ended June 30,
2005, decreased $273,000, or 4.5%, to $5.8 million from $6.1
million. This decrease was the result of a decrease in net
interest income of $434,000 and increases in the provision for
loan losses of $293,000 and non-interest expense of $156,000,
partially offset by an increase in non-interest income of
$423,000, and a decrease to the provision for income taxes of
$187,000. The decrease in net interest income for the period
ended June 30, 2006 was primarily the result of an increase in
interest expense of $8.2 million, partially offset by an
increase in interest income of $7.8 million. The increase in
non-interest income was primarily the result of an increase in
fees and service charges, net gains on the sale of loans and
net gain on sale of securities available for sale of $292,000,
$166,000 and $113,000, respectively partially offset by
decreases in income from real estate joint ventures and other
non-interest income of $96,000 and $88,000, respectively.
Included in the increase to non-interest expense were
increases in compensation and employee benefits, premises and
equipment, and amortization of core deposit intangible of
$371,000, $95,000, and $43,000, respectively. Partially
offsetting the increase were decreases in minority interest
and other expenses of $105,000 and $176,000, respectively.
The Company's total assets increased by $46.7 million, or
2.52%, to $1.9 billion at June 30, 2006. The increase in
assets resulted primarily from increases in loans receivable
of $22.8 million, or 4.21%, to $563.0 million, and securities
of $12.8 million, or 1.15%, to $1.1 billion. The Company's
total liabilities increased by $60.4 million, or 3.50%, to
$1.8 billion at June 30, 2006. This increase in total
liabilities was primarily the result of an increase in
repurchase agreements of $86.0 million, or 80.4%, to $193.0
million partially offset by a decrease in deposits and FHLB
advances of $25.3 million and $10.2 million, respectively.
Total stockholders' equity decreased $13.7 million or 10.78%,
to $113.2 million at June 30, 2006, from $126.9 million at
December 31, 2005. The decrease to stockholders' equity was
primarily the result of an increase to accumulated other
comprehensive loss of $14.2 million, partially offset by an
increase in retained earnings of $2.9 million. Average
stockholders' equity to average assets was 6.50%, and book
value per share was $8.71 at June 30, 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 Global
Select 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
July 18, 2006
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,
2006 2005 2006 2005
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<s> <c> <c> <c> <c>
Interest income $23,419 $20,356 $ 45,873 $ 38,077
Interest expense 16,026 12,197 30,673 22,443
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Net interest income 7,393 8,159 15,200 15,634
Provision for loan losses 102 18 295 2
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Net interest income after provision for
loan losses 7,291 8,141 14,905 15,632
Noninterest income 2,099 1,746 3,479 3,056
Noninterest expense 5,845 6,063 11,562 11,406
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Income before provision
for income taxes 3,545 3,824 6,822 7,282
Provision for income taxes 535 607 1,017 1,204
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Net income $ 3,010 $ 3,217 $ 5,805 $ 6,078
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Net income per share:
Basic $0.24 $0.25 $0.46 $0.49
Diluted $0.23 $0.24 $0.45 $0.48
Annualized return on average assets 0.64% 0.71% 0.62% 0.72%
Annualized return on average equity 10.29% 9.51% 9.56% 9.68%
FINANCIAL CONDITION DATA:
As of:
June 30, December 31,
2006 2005
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<s> <c> <c>
Total assets $1,899,497 $1,852,779
Cash and cash equivalents 32,198 28,215
Total investment securities 1,129,911 1,117,063
Loans receivable, net 563,036 540,277
Customer deposits 809,264 834,530
Borrowed funds (includes subordinated debt) 944,462 869,242
Stockholders' equity 113,195 126,877
Book value per share $8.71 $9.58
Average equity to average assets 6.50% 7.28%
Allowance for loan losses to loans receivable 0.80% 0.86%
Nonperforming assets to total assets 0.19% 0.27%