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 17, 2007 CHARLES P. EVANOSKI
GROUP SENIOR VICE PRESIDENT
CHIEF FINANCIAL OFFICER
(724) 758-5584
FOR IMMEDIATE RELEASE
_____________________
ESB FINANCIAL CORPORATION ANNOUNCES
FIRST QUARTER EARNINGS
Ellwood City, Pennsylvania, April 17, 2007 - ESB Financial
Corporation (Nasdaq: ESBF), the parent company of ESB Bank, today
announced earnings of $0.15 per diluted share on net income of
$1.9 million for the quarter ended March 31, 2007, compared to
earnings of $0.22 per diluted share on net income of $2.8 million
for the quarter ended March 31, 2006. The Company's annualized
return on average assets and average equity were 0.40% and 5.96%,
respectively, for the quarter ended March 31, 2007.
Charlotte A. Zuschlag, President and Chief Executive Officer of
the Company, stated, "The first quarter results reflect continued
pressure to the net interest margin due to the continued effects
of an inverted yield curve. This environment offers significant
challenges to financial institutions whose income is derived
primarily from its net interest margin. While the challenges of
this rate environment continue to affect our net interest income,
and that of our peers, it is the intent of management to pursue
opportunities to grow non-interest income, reduce operating
expenses and improve our products while attempting to stabilize
our net interest margin and provide a sound investment return to
our shareholders."
The effect of the inverted yield curve is clearly reflected in
the Company's first quarter earnings that were impacted by
interest expense increasing approximately $3.1 million, which
exceeded the increase in interest income of $1.9 million,
resulting in a net decrease of $1.3 million, or 16.1%, to net
interest income. Additionally, provision for loan losses and
noninterest expense increased approximately $133,000 and
$281,000, respectively, partially offset by an increase of
$438,000 in noninterest income and a decrease in provision for
income taxes of $373,000.
The Company's total assets decreased by $17.7 million, or 0.92%,
during the quarter to $1.9 billion at March 31, 2007. This
decrease resulted primarily from a decrease to securities
available for sale of $19.7 million, or 1.7%, to $1.1 billion
which was partially offset by an increase to loans receivable of
$5.1 million, or 0.87%, to $594.8 million. The Company's total
liabilities decreased by $20.2 million, or 1.1%, to $1.8 billion
at March 31, 2007. This decrease in total liabilities was
primarily the result of a decrease in borrowed funds of $27.9
million, or 2.9%, to $923.2 million, partially offset by an
increase to deposits of $7.6 million, or 0.92%, to $831.2
million. Total stockholders' equity increased $2.6 million, or
2.0%, to
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April 17, 2007
$131.1 million at March 31, 2007, from $128.5 million at
December 31, 2006. The increase to stockholders' equity was
primarily the result of decreases in accumulated other
comprehensive loss and unearned employee stock ownership plan of
approximately $2.1 million and $239,000, respectively, and an
increase in retained earnings of approximately $528,000. This
increase was partially offset by a net increase to treasury stock
of approximately $333,000. Average stockholders' equity to
average assets was 6.79%, and book value per share was $10.23 at
March 31, 2007 compared to 6.57% and $10.00, respectively, at
December 31, 2006.
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.
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Page 3 of 3
April 17, 2007
Three Months
Ended March 31,
2007 2006
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Interest income $ 24,314 $ 22,455
Interest expense 17,764 14,646
_________ _________
Net interest income 6,550 7,809
Provision for loan losses 326 193
_________ _________
Net interest income after
provision for loan losses 6,224 7,616
Noninterest income 1,816 1,378
Noninterest expense 5,998 5,717
_________ _________
Income before provison
for income taxes 2,042 3,277
Provision for income taxes 109 482
_________ _________
Net income $ 1,933 $ 2,795
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Net income per share:
Basic $0.15 $0.22
Diluted $0.15 $0.22
Annualized return on average assets 0.40% 0.60%
Annualized return on average equity 5.96% 8.88%
FINANCIAL CONDITION DATA:
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As of:
03/31/07 12/31/06
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Total assets $1,905,083 $1,922,722
Cash and cash equivalents 20,100 22,701
Total investment securities 1,124,269 1,143,924
Loans receivable, net 594,767 589,642
Customer deposits 831,210 823,644
Borrowed funds (includes subordinated debt) 923,247 951,153
Stockholders' equity 131,112 128,535
Book value per share $10.23 $10.00
Average equity to average assets 6.79% 6.57%
Allowance for loan losses to loans receivable 0.86% 0.84%
Nonperforming assets to total assets 0.23% 0.22%