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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October 16, 2007 CHARLES P. EVANOSKI
GROUP SENIOR VICE PRESIDENT
CHIEF FINANCIAL OFFICER
(724) 758-5584
FOR IMMEDIATE RELEASE
_____________________
ESB FINANCIAL CORPORATION REPORTS
THIRD QUARTER 2007 EARNINGS
Ellwood City, Pennsylvania, October 16, 2007 - ESB Financial Corporation
(Nasdaq: ESBF), the parent company of ESB Bank, today announced earnings for
the quarter ended September 30, 2007 of $0.16 per diluted share on net income
of $2.0 million as compared to earnings of $0.21 per diluted share on net
income of $2.7 million for the quarter ended September 30, 2006, a 23.8%
decrease in net income per diluted share. The Company's annualized return on
average assets and average equity were 0.43% and 6.58%, respectively, for the
quarter ended September 30, 2007, compared to 0.57% and 8.98%, respectively,
for the quarter ended September 30, 2006.
For the nine month period ended September 30, 2007, the Company realized
earnings of $0.47 per diluted share on net income of $6.0 million compared to
earnings of $0.66 per diluted share on net income of $8.5 million for the same
period in the prior year, a 28.8% decrease in net income per diluted share.
The Company's annualized return on average assets and average equity were
0.42% and 6.27%, respectively, for the nine-month period ended September 30,
2007, compared to 0.61% and 9.37%, respectively, for the nine months ended
September 30, 2006.
Charlotte A. Zuschlag, President and Chief Executive Officer of the Company,
stated, "The Company's net interest margin 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 $704,000, or 25.7%, to $2.0 million for the
quarter ended September 30, 2007, compared to $2.7 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 $887,000 and $443,000,
respectively, partially offset by decreases in provision for loan losses,
non-interest expense and provision for income taxes of $118,000, $109,000 and
$399,000, respectively. Net interest income decreased in the third quarter
primarily due to increases in interest expense on deposits and borrowings of
$1.2 million, partially offset by an increase in interest income of $348,000.
Included in the decrease
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October 16, 2007
in non-interest income were decreases to income from real estate joint
ventures and net gain on sale of securities available for sale of $236,000
and $339,000, respectively, partially offset by an increase in fees and
service charges of $75,000. The decrease in non-interest expense was primarily
due to a decrease in minority interest, related to the Company's interest in
joint ventures of $101,000.
Consolidated net income for the nine month period ended September 30, 2007, as
compared to the nine month period ended September 30, 2006, decreased $2.6
million, or 30.1%, to $6.0 million from $8.5 million. This decrease was the
result of decreases in net interest income and non-interest income of
$3.2 million and $163,000, respectively along with increases in the provision
for loan losses and non-interest expense of $98,000 and $246,000, respectively,
partially offset by a decrease to the provision for income taxes of $1.2
million. The decrease in net interest income for the period ended September
30, 2007 was primarily the result of an increase in interest expense of $6.3
million, partially offset by an increase in interest income of $3.1 million.
The decrease in non-interest income was primarily the result of decreases in
net gain on the sale of loans and net gain on sale of securities available
for sale of $172,000 and $454,000, respectively, partially offset by an
increase in income from real estate joint ventures of $245,000. Included in the
increase to non-interest expense was an increase in minority interest, related
to the Company's interest in joint ventures of $227,000.
The Company's total assets decreased by $4.8 million, or 0.3%, to $1.9 billion
at September 30, 2007. The decrease in assets resulted primarily from a
decrease in securities available for sale of $65.7 million, or 5.7%, to $1.1
billion, partially offset by increases in loans receivable of $28.1 million,
or 4.8%, to $617.7 million along with an increase in real estate held for
investment of $16.3 million, or 82.0% to $36.2 million. The Company's total
liabilities decreased by $2.2 million, or 0.1%, to $1.8 billion at September
30, 2007. This decrease in total liabilities was primarily the result of
decreases in FHLB advances and repurchase agreements and other borrowings of
$27.7 million, or 4.0%, to $670.5 million and $5.0 million, or 2.7%, to
$182.0 million, respectively, partially offset by increases in deposits and
other liabilities of $19.7 million and $12.6 million, respectively.
Total stockholders' equity decreased $2.6 million or 2.1%, to $125.9 million
at September 30, 2007, from $128.5 million at December 31, 2006. The decrease
to stockholders' equity was primarily the result of increases in accumulated
other comprehensive loss of $2.5 million and treasury stock of $2.8 million,
partially offset by an increase in retained earnings of $1.9 million. Average
stockholders' equity to average assets was 6.69%, and book value per share was
$10.01 at September 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
October 16, 2007
ESB FINANCIAL CORPORATION AND SUBSIDIARIES
Financial Highlights
(Dollars in Thousands - Except Per Share Amounts)
OPERATIONS DATA:
Three Months Nine Months
Ended September 30, Ended September 30,
2007 2006 2007 2006
______ ______ ______ ______
Interest income $24,552 $24,204 $73,137 $70,077
Interest expense 18,437 17,202 54,153 47,875
_______ _______ _______ _______
Net interest income 6,115 7,002 18,984 22,202
Provision for loan losses 156 274 667 569
_______ _______ _______ _______
Net interest income after provision for
loan losses 5,959 6,728 18,317 21,633
Noninterest income 2,083 2,526 5,841 6,004
Noninterest expense 5,895 6,004 17,811 17,565
_______ _______ _______ _______
Income before provision
for income taxes 2,147 3,250 6,347 10,072
Provision for income taxes 116 515 373 1,532
_______ _______ _______ _______
Net income $ 2,031 $ 2,735 $ 5,974 $ 8,540
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Net income per share:
Basic $0.16 $0.22 $0.48 $0.67
Diluted $0.16 $0.21 $0.47 $0.66
Annualized return on average assets 0.43% 0.57% 0.42% 0.61%
Annualized return on average equity 6.58% 8.98% 6.27% 9.37%
FINANCIAL CONDITION DATA:
As of:
September 30, December 31,
2007 2006
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Total assets $1,917,888 $1,922,722
Cash and cash equivalents 38,533 22,701
Total investment securities 1,078,251 1,143,924
Loans receivable, net 617,720 589,642
Customer deposits 843,351 823,644
Borrowed funds (includes subordinated debt) 917,760 951,153
Stockholders' equity 125,899 128,535
Book value per share $10.01 $10.00
Average equity to average assets 6.69% 6.57%
Allowance for loan losses to loans receivable 0.83% 0.84%
Nonperforming assets to total assets 0.20% 0.22%