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Wed, March 4, 2009
Tue, March 3, 2009
Mon, March 2, 2009
Stewardship Financial Corporation: Stewardship Financial Corporation Reports Earnings for the Year Ended December 31, 2008
MIDLAND PARK, NJ--(Marketwire - March 2, 2009) - Stewardship Financial Corporation (
Commenting on the Corporation's current results, Paul Van Ostenbridge, Stewardship Financial Corporation's President and Chief Executive Officer, stated, "We are all aware of the unprecedented events which negatively impacted financial institutions and the economy in 2008. Despite operating in this extremely challenging environment, we are pleased to report that our Corporation remains strong and profitable. However, our results for the year were affected by the need to increase our loan loss reserves."
Net interest income was $22.3 million for the year ended December 31, 2008 which was 14.8% greater than the $19.4 million achieved for the year ended December 31, 2007.
The provision for loan losses for the year ended December 31, 2008 totaled $3.6 million, compared to $530,000 for the year ended December 31, 2007. Van Ostenbridge commented, "We are diligently managing our loan portfolio to control delinquencies. The significant increase in the provision for loan losses is a direct result of problems related to a few commercial credit facilities. In management's opinion, the allowance for loan losses is adequate to cover losses inherent in the portfolio at December 31, 2008."
"Notwithstanding this difficult and competitive operating environment, we are dedicated to monitoring the performance of our loan portfolio and to the early detection of any credit issues. We recognize that appropriate management of our balance sheet growth coupled with proactive expense control measures are extremely important in protecting and enhancing shareholder value," Van Ostenbridge stated.
The Corporation's results for 2008 benefited from a fourth quarter gain of $509,000 realized from the sale of its merchant servicing portfolio. Earnings for the year ended December 31, 2007 were impacted by the receipt of a life insurance payout, which resulted in income of $459,000.
Total assets at December 31, 2008 were $611.8 million, compared to $571.9 million at December 31, 2007, reflecting total asset growth of 7.0%. The loan portfolio increased $19.1 million, or 4.6%, from $420.1 million at December 31, 2007 to $439.3 million at December 31, 2008.
Total deposits were $506.5 million at December 31, 2008, compared to $472.3 million a year ago, resulting in growth of 7.2%.
Total stockholders' equity increased 4.2% to $42.8 million at December 31, 2008, compared to $41.1 million a year ago.
Mr. Van Ostenbridge added, "It is encouraging to experience a wave of new customers migrating to Atlantic Stewardship Bank from the large mega banks experiencing problems in these challenging times. We have become a safe haven for depositors as well as an excellent source for businesses in need of financing. The Corporation has been recognized for maintaining strong capital ratios and, as a result of this strength, we were chosen by the U.S. Department of the Treasury to participate in the Capital Purchase Program. On January 30, 2009, the Corporation received $10 million in CPP proceeds, which enhanced our capital position and enables the Corporation to continue its robust lending pattern to the communities we serve."
Stewardship Financial Corporation's subsidiary, the Atlantic Stewardship Bank, has 13 banking offices in Midland Park, Hawthorne (2), Montville, North Haledon, Pequannock, Ridgewood, Waldwick, Wayne (3), Westwood and Wyckoff, New Jersey. The bank is known for tithing 10% of its pre-tax profits to Christian and local charities. In 2008, the Bank's Tithe amounted to $627,000 bringing total donations since the program began to $6.3 million.
We invite you to visit our website at [ www.asbnow.com ] for additional information.
The 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) Three Months Ended Year Ended December 31, December 31, --------------------- -------------------- 2008 2007 2008 2007 ---------- ---------- --------- --------- Selected Operating Data: Total interest income $ 8,797 $ 8,735 $ 35,074 $ 33,310 Total interest expense 3,022 3,692 12,771 13,880 ---------- ---------- --------- --------- Net interest income before provision for loan loss 5,775 5,043 22,303 19,430 Provision for loan loss 2,050 250 3,585 530 ---------- ---------- --------- --------- Net interest income after provision for loan loss 3,725 4,793 18,718 18,900 Gain on sales of mortgage loans 37 59 193 318 Gain on calls and sales of securities 42 4 103 4 Gain on sale of merchant portfolio 509 - 509 - Life insurance proceeds - - - 459 Other noninterest income 742 934 3,412 3,633 ---------- ---------- --------- --------- Noninterest income 1,330 997 4,217 4,414 Noninterest expense 4,583 4,579 17,986 16,629 ---------- ---------- --------- --------- Income before income tax expense 472 1,211 4,949 6,685 Income tax expense 49 373 1,448 2,078 ---------- ---------- --------- --------- Net income $ 423 $ 838 $ 3,501 $ 4,607 ========== ========== ========= ========= Basic earnings per share $ 0.08 $ 0.15 $ 0.63 $ 0.83 Diluted earnings per share $ 0.08 $ 0.15 $ 0.63 $ 0.82 At December 31, -------------------- 2008 2007 --------- --------- Selected Financial Data: Total assets $ 611,816 $ 571,905 Total loans, net of deferred loan fees 439,269 420,147 Allowance for loan losses 5,166 4,457 Total deposits 506,531 472,299 Stockholders' equity 42,796 41,090 At or for the year ended December 31, -------------------- 2008 2007 --------- --------- Selected Financial Ratios: Annualized return on average assets (ROA) 0.58% 0.86% Annualized return on average equity (ROE) 8.34% 11.76% Tier 1 equity to total assets 8.14% 8.40% Book value per share $ 7.68 $ 7.37 All share data has been restated to include the effect of a 5% stock dividend paid in November 2008 and 2007.