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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January 25, 2007 CHARLES P. EVANOSKI
GROUP SENIOR VICE PRESIDENT
CHIEF FINANCIAL OFFICER
(724) 758-5584
FOR IMMEDIATE RELEASE
_____________________
ESB FINANCIAL CORPORATION ANNOUNCES
EARNINGS FOR FOURTH QUARTER AND 2006 YEAR END
Ellwood City, Pennsylvania, January 25, 2007 - ESB Financial
Corporation (NASDAQ: ESBF), the parent company of ESB Bank, today
announced earnings of $0.83 per diluted share on net income of
$10.6 million for the year ended December 31, 2006, compared to
earnings of $0.71 per diluted share on net income of $9.2 million
for the year ended December 31, 2005, a 16.9% increase in net
income per diluted share. The Company's return on average assets
and average equity were 0.56% and 8.55%, respectively, for the
year ended December 31, 2006.
For the three months ended December 31, 2006, the Company
announced earnings of $0.16 per diluted share on net income of
$2.1 million, compared to earnings of $0.01 per diluted share on
net income of $210,000 for the quarter ended December 31, 2005.
During the quarter ended December 31, 2005, the Company
restructured a portion of its securities portfolio to reduce the
prepayment risk associated with these securities. In connection
with the restructuring, the Company incurred a pre-tax loss of
approximately $3.0 million, or an after tax loss of approximately
$2.0 million or $0.15 per diluted share. The Company's annualized
return on average assets and average equity were 0.43% and 6.29%,
respectively, for the quarter ended December 31, 2006.
Commenting on the quarter and year end results, Charlotte A.
Zuschlag, President and Chief Executive Officer of the Company and
the Bank, stated, "The interest rate environment and inversion of
the yield curve in 2006 placed significant pressure on the
Company's net interest rate margin. Our goal in this environment
is to manage our net interest rate margin without compromising
asset quality and future earnings potential. Additionally, I am
pleased with our ability to control operating expenses which were
below expectations and showed only a nominal increase to 2005. The
Company's management and Board of Directors continually look for
opportunities to grow earnings. One of these strategies, which
continues to be successful, is the Company's involvement in real
estate joint ventures. These joint ventures provided increases to
noninterest income which assisted in partially offsetting the
declines being experienced in net interest income." Ms. Zuschlag
concluded by stating, "Management will continue to strive to
pursue growth opportunities that will provide a sound investment
return to our shareholders"
Consolidated net income for the year ended December 31, 2006
increased $1.4 million or 15.7% to $10.6 million from $9.2
million, as compared to the year ended December 31, 2005. This
net increase was a result of an increase in noninterest income of
$4.6 million, partially offset by a decrease in net interest
income of $1.9 million, and increases in provision for loan
losses, noninterest expense and provision for income taxes of
$545,000, $292,000 and $507,000, respectively. The $4.6 million
increase to noninterest income was
Press Release
Page 2 of 3
January 25, 2007
primarily due to increases in fees and service charges, net gain
on the sale of loans, gain on the sale of securities available for
sale and income from real estate joint ventures of approximately
$261,000, $167,000, $3.4 million and $838,000, respectively. The
increase to gain on sale of securities available for sale was due
to the previously discussed securities portfolio restructuring in
the fourth quarter of 2005. The $292,000 increase in noninterest
expense was primarily related to increases to compensation and
employee benefits and minority interest of $522,000 and $334,000,
respectively, partially offset by decreases to premises and
equipment, data processing and other expenses of approximately
$121,000, $177,000 and $222,000, respectively.
Consolidated net income for the quarter ended December 31, 2006
increased $1.9 million to $2.1 million from $210,000, as compared
to the quarter ended December 31, 2005. This net increase was a
result of an increase in noninterest income of $3.4 million,
partially offset by a decrease in net interest income of $838,000
and increases in provision for loan losses and provision for
income taxes of $45,000 and $718,000, respectively. The $3.5
million increase to noninterest income was primarily due to
increases in the gain on the sale of securities available for sale
and income from real estate joint ventures of approximately $3.0
million and $430,000, respectively. The increase to gain on sale
of securities available for sale was due to the previously
discussed portfolio restructuring in 2005.
The Company's consolidated total assets increased $69.9 million,
or 3.8%, to $1.92 billion at December 31, 2006, from $1.85 billion
at December 31, 2005. Securities increased $26.9 million, or
2.4%, to $1.1 billion and net loans receivable increased $49.4
million, or 9.1%, to $589.6 million. Total liabilities increased
$68.3 million, or 4.0%, to $1.79 billion at December 31, 2006 from
$1.73 billion at December 31, 2005. Borrowed funds increased
$81.9 million, or 9.4% to $951.2 million while total deposits
decreased $10.9 million, or 1.3%, to $823.6 million at December
31, 2006.
Total stockholders' equity was $128.5 million or 6.7% of total
assets, and book value per share was $10.00 at December 31, 2006
compared to $126.9 million or 6.8% of total assets, and book value
per share of $9.58 at December 31, 2005.
The Company also announced that its annual meeting of stockholders
will be held on Wednesday, April 18, 2007 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 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.
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Page 3 of 3
January 25, 2007
ESB FINANCIAL CORPORATION AND SUBSIDIARIES
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Financial Highlights
(Dollars in Thousands - Excpet Per Share Amounts)
OPERATIONS DATA:
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Year Ended Three Months
December 31, Enced December 31,
2006 2005 2006 2006
____ ____ ____ ____
Interest income $ 94,471 $ 80,353 $ 24,395 $ 21,515
Interest expense 65,804 49,823 17,929 14,211
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Net interest income 28,667 30,530 6,466 7,304
Provision for (recovery of) loan losses 1,113 568 544 499
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Net interest income after provision for
(recover of) loan losses 27,554 29,962 5,922 6,805
Noninterest income 7,786 3,142 1,780 (1,670)
Noninterest expense 23,407 23,115 5,842 5,858
__________ __________ __________ __________
Income before provision for income taxes 11,933 9,989 1,860 (723)
Provision for (recovery of) income taxes 1,317 810 (215) (933)
__________ __________ __________ __________
Net income $ 10,616 $ 9,179 $ 2,075 $ 210
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Earnings per share:
Basic $0.84 $0.73 $0.16 $0.02
Diluted $0.83 $0.71 $0.16 $0.01
Annualized return on average assets 0.56% 0.52% 0.43% 0.05%
Annualized return on average equity 8.55% 7.16% 6.29% 0.66%
FINANCIAL CONDITION DATA:
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12/31/06 12/31/05
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Total assets $1,922,722 $1,852,779
Cash and cash equivalents 22,701 28,215
Total investment securities 1,143,924 1,117,063
Loans receivable, net 589,642 540,277
Customer deposits 823,644 834,530
Borrowed funds (includes subordinated debt) 951,153 869,242
Stockholders' equity 128,535 126,877
Book value per share $10.00 $9.58
Average equity to average assets 6.57% 7.28%
Allowance for loan losses to loans receivable 0.84% 0.86%
Non-performing assets to total assets 0.22% 0.27%