ESB Financial Corporation (Nasdaq: ESBF), the parent company of ESB Bank, today announced earnings for the quarter ended September 30, 2011 of $0.27 per diluted share on net income of $4.0 million as compared to earnings of $0.24 per diluted share on net income of $3.5 million for the quarter ended September 30, 2010, a 12.5% increase in net income per diluted share. The Company’s annualized return on average assets and average equity were 0.80% and 8.59%, respectively, for the quarter ended September 30, 2011, compared to 0.71% and 7.89%, respectively, for the quarter ended September 30, 2010.
For the nine month period ended September 30, 2011, the Company realized earnings of $0.82 per diluted share on net income of $11.9 million compared to earnings of $0.75 per diluted share on net income of $10.8 million for the same period in the prior year, a 9.3% increase in net income per diluted share. The Company’s annualized return on average assets and average equity were 0.82% and 8.99%, respectively, for the nine month period ended September 30, 2011, compared to 0.74% and 8.39%, respectively, for the nine months ended September 30, 2010.
Charlotte A. Zuschlag, President and Chief Executive Officer of the Company, stated, “The Board of Directors, senior management and I are pleased with the earnings for the nine months ended September 30, 2011. Our net income improved 10.1% over the nine month period ended September 30, 2010 and our net interest margin has also improved slightly since December 31, 2010. We have continued to manage our interest rate margin primarily through internal deposit growth. We established a program of pursuing personal and business deposit relationships and are pleased to see the positive trends that have continued into 2011. Our deposits have grown $150.0 million since December 2010 which have primarily been used to replace our wholesale borrowings.” Ms. Zuschlag continued by stating, “Management will continue to strive to pursue growth opportunities that provide a sound investment return to our shareholders such as our expansion plans with the construction of our 25 th office in Cranberry Township, Butler County, which is scheduled to open in the fourth quarter of 2011.” She added, “Our philosophy has been, and continues to be, to manage the net interest margin without compromising asset quality or future earnings potential while continuing to offer quality products to our customers.”
Consolidated net income increased $499,000, or 14.3%, to $4.0 million for the quarter ended September 30, 2011, compared to $3.5 million for the same period in the prior year. This increase was primarily the result of increases in net interest income and noninterest income of $130,000 and $62,000, respectively, as well as decreases in the provision for loan losses and noninterest expense of $250,000 and $486,000, respectively. These increases were offset by increases in provision for income taxes and net income attributable to the noncontrolling interest of $315,000 and $114,000, respectively. The increase in net interest income for the quarter ended September 30, 2011 was primarily the result of a decrease in interest expense of $1.4 million, partially offset by a decrease in interest income of $1.3 million.
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