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, 2007 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 2007 EARNINGS
Ellwood City, Pennsylvania, July 18, 2007 - ESB Financial Corporation (Nasdaq:
ESBF), the parent company of ESB Bank, today announced earnings for the quarter
ended June 30, 2007 of $0.16 per diluted share on net income of $2.0 million as
compared to earnings of $0.23 per diluted share on net income of $3.0 million
for the quarter ended June 30, 2006, a 30.4% decrease in net income per diluted
share. The Company's annualized return on average assets and average equity
were 0.42% and 6.28%, respectively, for the quarter ended June 30, 2007,
compared to 0.64% and 10.29%, respectively, for the quarter ended June 30, 2006.
For the six month period ended June 30, 2007, the Company realized earnings of
$0.31 per diluted share on net income of $3.9 million compared to earnings of
$0.45 per diluted share on net income of $5.8 million for the same period in
the prior year, a 31.1% decrease in net income per diluted share. The Company's
annualized return on average assets and average equity were 0.41% and 6.12%,
respectively, for the six-month period ended June 30, 2007, compared to 0.62%
and 9.56%, respectively, for the six months ended June 30, 2006.
Charlotte A. Zuschlag, President and Chief Executive Officer of the Company,
stated, "The Company's net interest margin began to show some signs of
stabilization in the second quarter as the inverted yield curve began to
subside. However, the Company's income continues to be impacted by the sustained
effects of the inverted rate environment. This environment continues to offer
significant challenges to financial institutions whose income is derived
primarily from its net interest margin. The Company remains committed to
improving net interest and noninterest income, while pursuing strategies to
grow and provide a sound investment return to our shareholders."
Consolidated net income decreased $1.0 million, or 33.2%, to $2.0 million for
the quarter ended June 30, 2007, compared to $3.0 million for the same period
in the prior year. This decrease was primarily the result of decreases in net
interest income and non-interest income of $1.1 million and $157,000,
respectively, as well as increases in provision for loan losses and non-interest
expense of $83,000 and $73,000,respectively, partially offset by a decrease to
the provision for income taxes of $387,000. Net interest income decreased in
the second quarter primarily due to increases in interest expense on
Press Release
Page 2 of 3
July 18, 2007
deposits and borrowings of $1.9 million, partially offset by an increase in
interest income of $852,000. Included in the decrease in non-interest income
were decreases to net gain on sale of loans and net gain on sale of securities
available for sale of $177,000 and $115,000, respectively, partially offset by
an increase in income from real estate joint ventures of $197,000. Included in
the increase of non-interest expense were increases in data processing and
minority interest, related to the Company's interest in joint ventures, of
$77,000 and $111,000, respectively.
Consolidated net income for the six month period ended June 30, 2007, as
compared to the six month period ended June 30, 2006, decreased $1.9 million,
or 32.1%, to $3.9 million from $5.8 million. This decrease was the result of
a decrease in net interest income of $2.3 million and increases in the
provision for loan losses and non-interest expense of $216,000 and $354,000,
respectively, partially offset by an increase in non-interest income of
$279,000, and a decrease to the provision for income taxes of $760,000. The
decrease in net interest income for the period ended June 30, 2007 was
primarily the result of an increase in interest expense of $5.0 million,
partially offset by an increase in interest income of $2.7 million. The
increase in non-interest income was primarily the result of an increase in
income from real estate joint ventures of $482,000, partially offset by
decrease in net gains on the sale of loans and net gain on sale of securities
available for sale of $170,000 and $115,000, respectively. Included in the
increase to non-interest expense was an increase in minority interest, related
to the Company's interest in joint ventures of $329,000.
The Company's total assets decreased by $33.6 million, or 1.8%, to $1.9 billion
at June 30, 2007. The decrease in assets resulted primarily from decreases in
securities available for sale of $53.3 million, or 4.7%, to $1.1 billion,
partially offset by an increase in loans receivable of $12.4 million, or 2.1%,
to $602.0 million. The Company's total liabilities decreased by $26.2 million,
or 1.5%, to $1.8 billion at June 30, 2007. This decrease in total liabilities
was primarily the result of a decrease in FHLB advances of $57.3 million, or
8.2%, to $641.0 million partially offset by increases in deposits, other
borrowings and other liabilities of $20.5 million, $5.0 and $5.3 million,
respectively. Total stockholders' equity decreased $7.4 million or 5.7%, to
$121.2 million at June 30, 2007, from $128.5 million at December 31, 2006.
The decrease to stockholders' equity was primarily the result of a decrease to
accumulated other comprehensive loss of $7.5 million and an increase to
treasury stock of $1.4 million, partially offset by an increase in retained
earnings of $1.0 million. Average stockholders' equity to average assets was
6.55%, and book value per share was $9.53 at June 30, 2007 compared to 6.57%
and $10.00 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 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.
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Page 3 of 3
July 18, 2007
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,
2007 2006 2007 2006
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<s> <c> <c> <c> <c>
Interest income $24,271 $23,419 $48,585 $45,873
Interest expense 17,952 16,026 35,716 30,673
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Net interest income 6,319 7,393 12,869 15,200
Provision for loan losses 185 102 511 295
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Net interest income after provision for
loan losses 6,134 7,291 12,358 14,905
Noninterest income 1,942 2,099 3,758 3,479
Noninterest expense 5,918 5,845 11,916 11,562
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Income before provision
for income taxes 2,158 3,545 4,200 6,822
Provision for income taxes 148 535 257 1,017
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Net income $ 2,010 $ 3,010 $ 3,943 $ 5,805
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Net income per share:
Basic $0.16 $0.24 $0.32 $0.46
Diluted $0.16 $0.23 $0.31 $0.45
Annualized return on average assets 0.42% 0.64% 0.41% 0.62%
Annualized return on average equity 6.28% 10.29% 6.12% 9.56%
FINANCIAL CONDITION DATA:
As of:
June 30, December 31,
2007 2006
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<s> <c> <c>
Total assets $ 1,889,118 $ 1,922,722
Cash and cash equivalents 27,045 22,701
Total investment securities 1,090,581 1,143,924
Loans receivable, net 602,013 589,642
Customer deposits 844,163 823,644
Borrowed funds (includes subordinated debt) 898,438 951,153
Stockholders' equity 121,165 128,535
Book value per share $9.53 $10.00
Average equity to average assets 6.78% 6.57%
Allowance for loan losses to loans receivable 0.85% 0.84%
Nonperforming assets to total assets 0.21% 0.22%