MIDLAND PARK, NJ -- (MARKET WIRE) -- February 26, 2007 -- Stewardship Financial Corporation (
OTCBB:
SSFN), parent company of Atlantic Stewardship Bank, announced today net
income earned for the year ended December 31, 2006, of $4.75 million, or
$0.95 basic net income per share, an increase of 6.1% and 5.6% in net
income and basic net income per share, respectively, as compared to net
income of $4.48 million, or $0.90 per share for the year ended December 31,
2005.
Diluted income per share was $0.94 for the year ended December 31, 2006, an
increase of 5.6% over the diluted income per share of $0.89 for the year
ended December 31, 2005.
Net income for the quarter ended December 31, 2006, increased by 6.3% to
$1.25 million from $1.18 million for the same three-month period in 2005.
Basic and diluted earnings per share for the quarter ended December 31,
2006, were $0.25 compared to $0.24 and $0.23, respectively, for the same
period in 2005.
During the quarter ended December 31, 2006, Atlantic Stewardship Bank
successfully completed the sale of its $3.4 million credit card portfolio
to Elan Financial Services ("Elan"), a national credit card issuer. Under
the purchase agreement, Elan will issue credit cards under the name of
Atlantic Stewardship Bank and will provide customers with a choice
selection of credit card products. As part of our overall strategy to
improve income and overall efficiency of our lending area, the sale
provides an opportunity to redirect resources to more profitable lending
areas while continuing to provide our customers with strong credit card
products through Elan. The Corporation also completed a sale of $17.3
million of available for sale securities that were yielding less than 5
percent. The proceeds of the sale were used to purchase higher yielding
securities and to fund loan growth that should reduce exposure to future
interest rate risk and enhance long-term financial performance. The gain
from the sale of the credit card portfolio and the loss from the sale of
the securities had a net impact of increasing basic and fully diluted
earnings per share by $0.03 for the year ended December 31, 2006.
Net income per share data has been restated to reflect a 4 for 3 stock
split issued in July 2005, and a 5% stock dividend paid in November 2006
and 2005.
Paul Van Ostenbridge, President and Chief Executive Officer of both
Stewardship Financial Corporation and Atlantic Stewardship Bank, stated,
"We are excited to report our strongest earnings ever for the year ending
December 31, 2006. Considering the pressure on net interest margins and
the competitive deposit and loan pricing environment, we are pleased with
the success of our organization."
Stewardship Financial Corporation's total assets reached $519.7 million at
December 31, 2006, compared to $482.7 million at December 31, 2005, for a
growth of 7.7%. Total loans increased $23.7 million, or 6.9% from $345.8
million at December 31, 2005 to $369.5 million at December 31, 2006. Total
deposits were $434.2 million at December 31, 2006, compared to $403.5
million a year ago, for an increase of 7.6%. Total stockholders' equity
increased 11.7% to $37.3 million at December 31, 2006, compared to $33.4
million a year ago.
Stewardship Financial Corporation is the parent company for Atlantic
Stewardship Bank, which has banking offices in Midland Park, two branches
in Hawthorne, Montville, Pequannock, Ridgewood, Waldwick and three branches
in Wayne, New Jersey. The Bank will open its eleventh branch in Wyckoff in
March 2007 and is seeking approvals on its twelfth branch in Westwood.
Atlantic Stewardship Bank, opened in 1985, is a community bank serving
individuals and businesses, and is well known for tithing ten percent of
its pre-tax profits to Christian and local charitable organizations.
Visit our website at
www.asbnow.com or call 201-444-7100 for further
information regarding our products and services.
This information disclosed in this document contains certain
"forward-looking statements" within the meaning of the Private Securities
Litigation Reform Act of 1995, and may be identified by the use of such
words as "believe," "expect," "anticipate," "should," "plan," "estimate,"
and "potential." Examples of forward-looking statements include, but are
not limited to, estimates with respect to the financial condition, results
of operations and business of the Corporation that are subject to various
factors which could cause actual results to differ materially from these
estimates. These factors include: changes in general, economic and market
conditions, legislative and regulatory conditions, or the development of an
interest rate environment that adversely affects the Corporation's interest
rate spread or other income anticipated from operations and investments.
Stewardship Financial Corporation
Financial Highlights
(unaudited)
(In thousands, except per share data)
Year Ended Three Months Ended
December 31, December 31,
2006 2005 2006 2005
-------- --------- -------- ---------
Selected Operating Data:
Total interest income $ 30,000 $ 24,900 $ 7,889 $ 6,724
Total interest expense 10,916 6,689 3,109 2,008
-------- --------- -------- ---------
Net interest income before
provision for loan loss 19,084 18,211 4,780 4,716
Provision for loan loss 264 600 14 150
-------- --------- -------- ---------
Net interest income after provision
for loan loss 18,820 17,611 4,766 4,566
Gain on sale of credit card
portfolio 746 - 746 -
Loss on sales of securities (435) - (435) -
Other noninterest income 3,878 3,240 993 841
-------- --------- -------- ---------
Noninterest income 4,189 3,240 1,304 841
Noninterest expense 15,629 13,867 4,120 3,549
-------- --------- -------- ---------
Income before income tax expense 7,380 6,984 1,950 1,858
Income tax expense 2,627 2,504 698 680
-------- --------- -------- ---------
Net income $ 4,753 $ 4,480 $ 1,252 $ 1,178
======== ========= ======== =========
Basic earnings per share $ 0.95 $ 0.90 $ 0.25 $ 0.24
Diluted earnings per share $ 0.94 $ 0.89 $ 0.25 $ 0.23
At December 31,
2006 2005
------------- -------------
Selected Financial Data:
Total assets $ 519,749 $ 482,727
Total loans, net of deferred loan fees 369,544 345,823
Allowance for loan losses 4,101 3,847
Total deposits 434,223 403,466
Stockholders' equity 37,306 33,384
At or for the year ended
December 31,
2006 2005
------------- -------------
Selected Financial Ratios:
Annualized return on average assets (ROA) 0.96% 1.00%
Annualized return on average equity (ROE) 13.41% 13.86%
Tier 1 capital to total assets 8.53% 8.37%
Book value per share $ 7.43 $ 6.70
All share data has been restated to include the effect of a 4 for 3 stock
split issued July 1, 2005 and a 5% stock dividend issued November 15, 2006
and 2005.
Contact Information: Contact:
Mary Beth Steiginga
Assistant Secretary
630 Godwin Avenue
Midland Park, NJ 07432
201-444-7100