ESB Financial Corporation (NASDAQ: ESBF), the parent company of ESB
Bank, today announced earnings of $1.02 per diluted share on net income
of $18.2 million for the year ended December 31, 2014, which represents
a 17.2% increase in net income per diluted share as compared to earnings
of $0.87 per diluted share on net income of $15.3 million for the year
ended December 31, 2013. The Company’s return on average assets and
return on average equity were 0.94% and 9.01%, respectively, for the
year ended December 31, 2014 compared to 0.81% and 8.09%, respectively,
for the year ended December 31, 2013.
For the three months ended December 31, 2014, the Company announced
earnings of $0.25 per diluted share on net income of $4.6 million, which
represents a 19.1% increase in net income per diluted share as compared
to earnings of $0.21 per diluted share on net income of $3.8 million for
the quarter ended December 31, 2013. The Company’s annualized return on
average assets and return on average equity were 0.95% and 8.71%,
respectively, for the quarter ended December 31, 2014 compared to 0.79%
and 8.06%, respectively, for the quarter ended December 31, 2013.
Commenting on the quarter and year end results, Charlotte A. Zuschlag,
President and Chief Executive Officer of the Company, stated, “The Board
of Directors, senior management and I are pleased with the record
earnings for the year ended December 31, 2014. These results make 2014
the sixth consecutive year that the Company has reported record
earnings.” Ms. Zuschlag continued, “I am so proud of the entire
management team for their leadership which has contributed to making ESB
the strong institution that it is today. I am excited about the
opportunity to partner with WesBanco and I believe the combined
institution will continue to benefit our shareholders, customers and
communities.”
Consolidated net income for the year ended December 31, 2014 increased
$2.9 million, or 18.7%, to $18.2 million from $15.3 million when
compared to the year ended December 31, 2013. This increase was
primarily the result of increases in net interest income and noninterest
income of $4.7 million and $429,000, respectively, as well as decreases
in provision for loan losses and net income attributable to the
noncontrolling interest of $1.2 million and $361,000, respectively.
These increases were offset by increases in noninterest expense and
provision for income taxes of $2.5 million and $1.3 million,
respectively.
Consolidated net income for the quarter ended December 31, 2014
increased $805,000, or 21.3%, to $4.6 million from $3.8 million, as
compared to the quarter ended December 31, 2013. This increase was
primarily the result of increases in net interest income and noninterest
income of $1.1 million and $1.2 million, respectively, as well as
decreases in provision for loan losses of $1.0 million. These increases
were offset by increases in noninterest expense and provision for income
taxes of $2.0 million and $489,000, respectively.
The Company’s total assets increased by $32.0 million, or 1.7%, to $1.9
billion at December 31, 2014. This increase resulted primarily from
increases to cash and cash equivalents, securities available for sale
and loans receivable of $12.8 million, or 79.1%, $20.9 million, or 2.0%
and $9.9 million, or 1.4%, respectively. These increases were partially
offset by decreases in FHLB Stock, premises and equipment, real estate
held for investment, intangible assets and prepaid expenses and other
assets of $2.8 million, or 18.0%, $659,000, or 5.0%, $1.5 million, or
18.9%, $109,000, or 86.3%, and $6.7 million, or 50.5%, respectively.
Total non-performing assets decreased slightly to $10.1 million at
December 31, 2014 compared to $10.8 million at December 31, 2013 and
non-performing assets to total assets were 0.52% at December 31, 2014
and 0.56% at December 31, 2013. The decrease in non-performing assets of
approximately $661,000, or 6.1%, was primarily the result of decreases
in non-performing loans of $7.4 million, partially offset by increases
in REO, repossessed vehicles and troubled debt restructuring of
$170,000, $170,000 and $6.4 million, respectively. The Company’s total
liabilities increased $4.2 million, or 0.3%, to $1.73 billion at
December 31, 2014 from $1.72 billion at December 31, 2013. This increase
resulted primarily from increases to deposits of $45.0 million, or 3.7%,
partially offset by decreases to borrowed funds of $40.3 million, or
8.4%.
Total stockholders’ equity was $213.6 million or 11.0% of total assets
and book value per share was $11.83 at December 31, 2014 compared to
$185.8 million or 9.7% of total assets and book value per share of
$10.48 at December 31, 2013. The increase to stockholders’ equity of
$27.8 million, or 15.0%, was primarily the result of increases in
additional paid in capital, retained earnings and accumulated other
comprehensive income of $1.3 million, or 1.3%, $10.4 million, or 10.7%
and $11.6 million, or 252.4%, as well as decreases in treasury stock and
unearned employee stock ownership plan of $3.4 million, or 19.2%, and
$968,000, or 45.6%, respectively. The increase to accumulated other
comprehensive income, which includes the fair value adjustment on the
securities portfolio, is primarily due to a decrease in the interest
rate on ten year Treasury securities of approximately 86 basis points
since December 31, 2013.
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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ESB FINANCIAL CORPORATION AND SUBSIDIARIES
|
Financial Highlights
|
Unaudited
|
(Dollars in Thousands - Except Per Share Amounts)
|
|
|
|
|
|
|
|
|
|
|
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OPERATIONS DATA:
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months
|
|
Three Months
|
|
|
|
|
Ended December 31,
|
|
Ended December 31,
|
|
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income
|
|
$
|
65,035
|
|
|
$
|
64,754
|
|
|
$
|
16,360
|
|
|
$
|
16,243
|
|
|
Interest expense
|
|
|
17,512
|
|
|
|
21,977
|
|
|
|
4,035
|
|
|
|
5,062
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
|
|
|
47,523
|
|
|
|
42,777
|
|
|
|
12,325
|
|
|
|
11,181
|
|
|
(Recovery of) provision for loan losses
|
|
|
(665
|
)
|
|
|
500
|
|
|
|
(800
|
)
|
|
|
200
|
|
|
Net interest income after (recovery of) provision for loan losses
|
|
|
48,188
|
|
|
|
42,277
|
|
|
|
13,125
|
|
|
|
10,981
|
|
|
Noninterest income
|
|
|
7,201
|
|
|
|
6,772
|
|
|
|
2,543
|
|
|
|
1,345
|
|
|
Noninterest expense
|
|
|
32,340
|
|
|
|
29,854
|
|
|
|
9,731
|
|
|
|
7,689
|
|
|
Income before provision for income taxes
|
|
|
23,049
|
|
|
|
19,195
|
|
|
|
5,937
|
|
|
|
4,637
|
|
|
Provision for income taxes
|
|
|
4,687
|
|
|
|
3,341
|
|
|
|
1,299
|
|
|
|
810
|
|
|
Net income
|
|
|
18,362
|
|
|
|
15,854
|
|
|
|
4,638
|
|
|
|
3,827
|
|
|
Less: Net income attributable to noncontrolling interest
|
|
149
|
|
|
|
510
|
|
|
|
50
|
|
|
|
44
|
|
|
Net income attributable to ESB Financial Corporation
|
$
|
18,213
|
|
|
$
|
15,344
|
|
|
$
|
4,588
|
|
|
$
|
3,783
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income per share:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
1.03
|
|
|
$
|
0.88
|
|
|
$
|
0.26
|
|
|
$
|
0.22
|
|
|
|
Diluted
|
|
$
|
1.02
|
|
|
$
|
0.87
|
|
|
$
|
0.25
|
|
|
$
|
0.21
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Interest Margin
|
|
|
2.84
|
%
|
|
|
2.65
|
%
|
|
|
2.96
|
%
|
|
|
2.75
|
%
|
|
Annualized return on average assets
|
|
|
0.94
|
%
|
|
|
0.81
|
%
|
|
|
0.95
|
%
|
|
|
0.79
|
%
|
|
Annualized return on average equity
|
|
|
9.01
|
%
|
|
|
8.09
|
%
|
|
|
8.71
|
%
|
|
|
8.06
|
%
|
|
|
|
|
|
|
|
|
|
|
|
FINANCIAL CONDITION DATA:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12/31/14
|
|
12/31/13
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
|
|
|
|
$
|
1,938,923
|
|
|
$
|
1,906,917
|
|
|
Cash and cash equivalents
|
|
|
|
|
|
|
29,044
|
|
|
|
16,214
|
|
|
Total investment securities
|
|
|
|
|
|
|
1,083,945
|
|
|
|
1,063,016
|
|
|
Loans receivable, net
|
|
|
|
|
|
|
705,569
|
|
|
|
695,636
|
|
|
Customer deposits
|
|
|
|
|
|
|
1,267,432
|
|
|
|
1,222,767
|
|
|
Borrowed funds (includes subordinated debt)
|
|
|
|
|
|
|
436,967
|
|
|
|
477,227
|
|
|
Stockholders' equity
|
|
|
|
|
|
|
213,623
|
|
|
|
185,843
|
|
|
Book value per share
|
|
|
|
|
|
$
|
11.83
|
|
|
$
|
10.48
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average equity to average assets
|
|
|
|
|
|
|
10.39
|
%
|
|
|
9.96
|
%
|
|
Allowance for loan losses to loans receivable
|
|
|
|
|
|
|
0.81
|
%
|
|
|
0.95
|
%
|
|
Non-performing assets to total assets
|
|
|
|
|
|
|
0.52
|
%
|
|
|
0.56
|
%
|
|
Non-performing loans to total loans
|
|
|
|
|
|
|
1.08
|
%
|
|
|
1.22
|
%
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Copyright Business Wire 2015