ESB Financial Corporation Announces Earnings for Fourth Quarter and 2006 Year End.ELLWOOD CITY Ellwood City, industrial borough (1990 pop. 8,894), Beaver and Lawrence counties, W central Pa., near the Ohio line; inc. 1892. It has many metal-product plants. Coal mines are in the area. , Pa. -- ESB (Enterprise Services Bus) A message broker that supports Web services. See message broker, messaging middleware and Web services. Financial Corporation (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :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 Prepayment Risk The uncertainty related to unscheduled prepayment in excess of scheduled principal repayment. Notes: This risk is generally associated with mortgage securities. 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 annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. 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 inversion /in·ver·sion/ (in-ver´zhun) 1. a turning inward, inside out, or other reversal of the normal relation of a part. 2. a term used by Freud for homosexuality. 3. 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 Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. 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 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 Portfolio restructuring Applies to derivative products. Recomposition of a portfolio's asset mix by selling off undesired asset types (equities, debt, or cash) or specific securities within that class, while simultaneously buying desired types or securities. 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 data processing or information processing, operations (e.g., handling, merging, sorting, and computing) performed upon data in accordance with strictly defined procedures, such as recording and summarizing the financial transactions of a 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 Stockholders' Equity The portion of the balance sheet that includes capital received from investors in exchange for stock (paid-in capital), donated capital, and retained earnings. This is equal to total assets minus liabilities, preferred stock and intangible assets. 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 beaver, either of two large aquatic rodents, Castor fiber and Castor canadensis, known for their engineering feats. They were once widespread in N and central Eurasia except E Siberia, and in North America from the arctic tree line to the S United and Butler in Pennsylvania. The common stock of the Company is traded on The NASDAQ Stock Market Nasdaq stock market The first electronic stock market listing over 5000 companies. The Nasdaq stock market comprises two separate markets, namely the Nasdaq National Market, which trades large, active securities and the Nasdaq Smallcap Market that trades emerging growth companies. 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 Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. , quarterly reports on Form 10-Q Form 10-Q See 10-Q. and current reports on Form 8-K Form 8-K The form required by the SEC when a publicly held company incurs any event that might affect its financial situation or the share value of its stock. Form 8-K See 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. [TABLE OMITTED] |
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion