ESB Financial Corporation Announces Record Earnings for 2004.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 record earnings of $0.94 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share on net income of $9.99 million for the year ended December December: see month. 31, 2004, which represents a 17.50% increase in net income per diluted share as compared to earnings of $0.80 per diluted share on net income of $8.52 million for the year ended December 31, 2003. The Company's return on average assets and average equity were 0.73% and 10.38%, respectively, for the year ended December 31, 2004. For the three months ended December 31, 2004, the Company announced earnings of $0.25 per diluted share on net income of $2.59 million, which represents a 13.64% increase in net income per diluted share as compared to earnings of $0.22 per diluted share on net income of $2.32 million for the quarter ended December 31, 2003. 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 0.75% and 10.57%, respectively, for the quarter ended December 31, 2004. Commenting on the quarter and year end results, Charlotte A. Zuschlag, President and Chief Executive Officer of the Company and the Bank, stated, "We are very pleased with the strong improvement to the Company's net interest margin in 2004 as well as our ability to continue 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. both of which assisted in the record earnings achieved in 2004. We are also pleased to announce that our pending merger with PHSB PHSB Public Health Service Bureau PHSB Preserve Historic Sleeping Bear Financial Corporation, the holding company for Peoples Home Savings Bank savings bank, financial institution that, until recently, performed only the following functions: receiving savings deposits of individuals, investing them, and providing a modest return to its depositors in the form of interest. , has been approved by all required regulatory agencies regulatory agency Independent government commission charged by the legislature with setting and enforcing standards for specific industries in the private sector. The concept was invented by the U.S. and the stockholders of ESBF and PHSB. The upcoming merger is expected to close on Friday Friday: see Sabbath; week. Friday young Indian rescued by Crusoe and kept as servant and companion. [Br. Lit.: Robinson Crusoe] See : Servant , February February: see month. 11, 2005. We are very excited about the opportunities and increased market exposure that this merger will bring to the Company." Consolidated net income for the year ended December 31, 2004 increased $1.47 million or 17.20% to $9.99 million from $8.52 million, as compared to the year ended December 31, 2003. This net increase was a result of an increase in net interest income of $3.30 million after the current year provision for loan losses of $206,000, as compared to a recovery of loan losses of $106,000 for the prior year, which is partially offset by a decrease in noninterest income of $831,000 and an increase in noninterest expense of $980,000. The $831,000 decrease to noninterest income was primarily due to a decrease to the gain on the sale of loans of approximately $404,000 and a decrease in the gain on the sale of securities available for sale of approximately $356,000 as well as a decline in the income generated by the Company's real estate joint ventures, net of minority interest, of approximately $321,000. Together, declines in these areas were partially offset by an increase in fees and service charges of approximately $652,000. The $980,000 increase in noninterest expense was primarily related to an increase on the loss on early extinguishment The destruction or cancellation of a right, a power, a contract, or an estate. Extinguishment is sometimes confused with merger, though there is a clear distinction between them. of debt of approximately $629,000 along with increases in the Company's expenses for health benefits as well as expenses associated with the Company's bonus programs, including the Company's Management Recognition Stock Plans. Consolidated net income for the quarter ended December 31, 2004 increased $267,000 or 11.49% to $2.59 million from $2.32 million, as compared to the quarter ended December 31, 2003. This net increase was a result of an increase in net interest income of $676,000 after the current quarter recovery of loan losses of $91,000, as compared to a provision for loan losses of $161,000 for the quarter ended December 31, 2003, which is partially offset by a decrease in noninterest income of $146,000 and an increase in noninterest expense of $147,000. The $146,000 decrease to noninterest income was primarily due to a decrease in the gain on the sale of securities available for sale of approximately $73,000 as well as a decline in the income generated by the Company's real estate joint ventures, net of minority interest, of approximately $132,000. The declines in these areas were partially offset by an increase in fees and service charges of approximately $128,000. The $147,000 increase in noninterest expense was primarily related to an increase associated with the Company's bonus programs, including the Company's Management Recognition Stock Plans, partially offset by a decline in other noninterest expense of approximately $102,000. The Company's consolidated total assets increased $28.7 million or 2.10% to $1.4 billion at December 31, 2004, from $1.4 billion at December 31, 2003. Securities increased $858,000 or 0.09% to $929.8 million and net loans receivable increased $21.0 million or 6.50% to $343.5 million. Total deposits decreased $22.7 million or 3.76% to $580.4 million and borrowed funds increased $50.3 million or 7.71% to $702.8 million, as compared to December 31, 2003. 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 $97.8 million or 7.01% of total assets, and book value per share was $9.16 at December 31, 2004 compared to $96.9 million or 7.09% of total assets, and book value per share of $8.98 at December 31, 2003. The Company also announced that its annual meeting of stockholders will be held on Wednesday, April 20, 2005 at 4:00 p.m. at the Connoquenessing Country Club in Ellwood City, Pennsylvania Pennsylvania (pĕnsəlvā`nyə), one of the Middle Atlantic states of the United States. It is bordered by New Jersey, across the Delaware River (E), Delaware (SE), Maryland (S), West Virginia (SW), Ohio (W), and Lake Erie and New York . ESB Financial Corporation is the parent holding company of ESB Bank, and offers a wide variety of financial products and services through 16 offices in the contiguous Adjacent or touching. Contrast with fragmentation. See contiguous file. 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.
ESB FINANCIAL CORPORATION AND SUBSIDIARIES
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Financial Highlights
(Dollars in Thousands - Except Per Share Amounts)
OPERATIONS DATA:
----------------
Year Ended Three Months
December 31, Ended December 31,
2004 2003 2004 2003
---------- ---------- ----------- -----------
Interest income $60,798 $62,467 $15,637 $15,328
Interest expense 35,569 40,852 9,198 9,313
---------- ---------- ----------- -----------
Net interest income 25,229 21,615 6,439 6,015
Provision for
(recovery of) loan
losses 206 (106) (91) 161
---------- ---------- ----------- -----------
Net interest income
after provision for
(recovery of) loan
losses 25,023 21,721 6,530 5,854
Noninterest income 6,960 7,791 1,700 1,846
Noninterest expense 20,157 19,177 4,990 4,843
---------- ---------- ----------- -----------
Income before
provision for income
taxes 11,826 10,335 3,240 2,857
Provision for income
taxes 1,836 1,811 649 533
---------- ---------- ----------- -----------
Net income $9,990 $8,524 $2,591 $2,324
========== ========== =========== ===========
Earnings per share:
Basic $0.98 $0.84 $0.25 $0.23
Diluted $0.94 $0.80 $0.25 $0.22
Annualized return on
average assets 0.73% 0.63% 0.75% 0.68%
Annualized return on
average equity 10.38% 8.75% 10.57% 9.68%
FINANCIAL CONDITION
DATA:
-------------------
12/31/04 12/31/03
----------- -----------
Total assets $1,394,515 $1,365,780
Cash and cash equivalents 17,703 15,330
Total investment securities 929,794 928,936
Loans receivable, net 343,524 322,454
Customer deposits 580,346 603,046
Borrowed funds (includes
subordinated debt) 702,773 652,489
Stockholders' equity 97,801 96,871
Book value per share $9.16 $8.98
Average equity to average assets 6.99% 7.22%
Allowance for loan losses to
loans receivable 1.06% 1.17%
Non-performing assets to
total assets 0.20% 0.22%
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