UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
Quarterly Report Pursuant to Section 13 or 15 (d) of the Securities Exchange Act of 1934
For Quarter Ended: March 31, 2003
Commission File Number: 0-19345
ESB FINANCIAL CORPORATION
(Exact name of registrant as specified in its charter)
| Pennsylvania (State or other jurisdiction of incorporation or organization) |
25-1659846 (I.R.S. Employer Identification No.) |
| 600 Lawrence Avenue, Ellwood City, PA (Address of principal executive offices) |
16117 (Zip Code) |
(724) 758-5584
(Registrant’s telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No o
Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act).
Yes o No x
Number of shares of common stock outstanding as of March 31, 2003: 8,787,383 shares
ESB FINANCIAL CORPORATION
TABLE OF CONTENTS
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FINANCIAL INFORMATION |
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Item 1. |
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Financial Statements |
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Consolidated Statements of Operations for the three months ended March 31, 2003 and 2002 (Unaudited) |
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Consolidated Statements of Cash Flows for the three months ended March 31, 2003 and 2002 (Unaudited) |
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Item 2. |
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Management’s Discussion and Analysis of Financial Condition and Results of Operations |
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Item 3. |
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Item 4. |
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| PART II |
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OTHER INFORMATION |
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Item 1. |
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Item 2. |
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Item 3. |
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Item 4. |
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Item 5. |
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Item 6. |
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| 22 |
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
ESB Financial Corporation and Subsidiaries
Consolidated Statements of Financial Condition
As of March 31, 2003 (Unaudited) and December 31, 2002
(Dollar amounts in thousands)
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March 31, |
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December 31, |
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(Unaudited) |
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| Assets |
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| Cash on hand and in banks |
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$ |
3,655 |
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$ |
4,843 |
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| Interest-earning deposits |
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11,124 |
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9,837 |
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| Federal funds sold |
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1,008 |
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453 |
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| Securities available for sale; cost of $870,748 and $845,706 |
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892,579 |
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865,135 |
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| Loans receivable, net of allowance for loan losses of $4,030 and $4,237 |
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327,849 |
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339,324 |
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| Loans held for sale |
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1,930 |
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1,568 |
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| Accrued interest receivable |
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7,644 |
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8,405 |
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| Federal Home Loan Bank (FHLB) stock |
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30,231 |
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29,887 |
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| Premises and equipment, net |
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9,205 |
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9,290 |
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| Real estate acquired through foreclosure, net |
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1,119 |
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1,092 |
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| Real estate held for investment |
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13,420 |
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13,195 |
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| Goodwill |
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7,127 |
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7,127 |
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| Intangible Assets |
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1,045 |
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1,342 |
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| Prepaid expenses and other assets |
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2,845 |
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4,506 |
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| Bank owned life insurance |
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23,948 |
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23,691 |
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| Total assets |
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$ |
1,334,729 |
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$ |
1,319,695 |
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| Liabilities and Stockholders’ Equity |
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| Liabilities: |
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| Deposits |
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$ |
603,159 |
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$ |
589,826 |
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| FHLB advances |
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557,269 |
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549,274 |
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| Repurchase agreements |
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35,300 |
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45,600 |
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| Other borrowings |
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2,131 |
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2,449 |
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| Guaranteed preferred beneficial interest in subordinated debt, net |
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24,214 |
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24,203 |
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| Advance payments by borrowers for taxes and insurance |
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1,820 |
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2,099 |
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| Accrued expenses and other liabilities |
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10,900 |
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9,873 |
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| Total liabilities |
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1,234,793 |
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1,223,324 |
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| Stockholders’ Equity: |
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| Preferred stock, $.01 par value, 5,000,000 shares authorized; none issued |
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| Common stock, $.01 par value, 30,000,000 shares authorized; |
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| 9,172,379 and 9,172,379 shares issued; |
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| 8,787,383 and 8,753,660 shares outstanding |
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92 |
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92 |
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| Additional paid-in capital |
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58,428 |
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58,297 |
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| Treasury stock, at cost; 384,996 and 418,719 shares |
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(4,399 |
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(4,769 |
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| Unearned Employee Stock Ownership Plan (ESOP) shares |
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(2,148 |
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(2,305 |
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| Unvested shares held by Management Recognition Plan (MRP) |
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(218 |
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(225 |
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| Retained earnings |
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33,773 |
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32,458 |
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| Accumulated other comprehensive income, net |
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14,408 |
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12,823 |
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| Total stockholders’ equity |
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99,936 |
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96,371 |
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| Total liabilities and stockholders’equity |
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$ |
1,334,729 |
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$ |
1,319,695 |
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See accompanying notes to consolidated financial statements.
1
ESB Financial Corporation and Subsidiaries
Consolidated Statements of Operations
For the three months ended March 31, 2003 and 2002 (Unaudited)
(Dollar
amounts in thousands, except share data)
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Three Months Ended |
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2003 |
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2002 |
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| Interest income: |
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| Loans receivable |
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$ |
5,774 |
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$ |
9,466 |
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| Taxable securities available for sale |
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9,536 |
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7,890 |
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| Tax free securities available for sale |
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1,171 |
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1,148 |
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| FHLB stock |
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241 |
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244 |
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| Deposits with banks and federal funds sold |
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26 |
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34 |
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| Total interest income |
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16,748 |
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18,782 |
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| Interest expense: |
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| Deposits |
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3,691 |
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4,989 |
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| Borrowed funds |
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6,795 |
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7,722 |
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| Guaranteed preferred beneficial interest in subordinated debt |
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557 |
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557 |
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| Total interest expense |
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11,043 |
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13,268 |
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| Net interest income |
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5,705 |
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5,514 |
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| (Recovery of) provision for loan losses |
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(182 |
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13 |
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| Net interest income after (recovery of) provision for loan losses |
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5,887 |
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5,501 |
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| Noninterest income: |
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| Fees and service charges |
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244 |
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435 |
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| Net gain on sale of loans |
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116 |
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87 |
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| Increase of cash surrender value of bank owned life insurance |
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256 |
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297 |
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| Net realized gain on sales of securities available for sale |
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435 |
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125 |
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| Income from real estate joint ventures |
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193 |
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1 |
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| Other |
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186 |
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125 |
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| Total noninterest income |
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1,430 |
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1,070 |
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| Noninterest expense: |
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| Compensation and employee benefits |
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2,671 |
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2,333 |
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| Premises and equipment |
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448 |
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591 |
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| Federal deposit insurance premiums |
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25 |
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26 |
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| Data processing |
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327 |
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186 |
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| Amortization of intangible assets |
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51 |
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56 |
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| Other |
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874 |
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861 |
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| Total noninterest expense |
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4,396 |
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4,053 |
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| Income before provision for income taxes |
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2,921 |
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2,518 |
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| Provision for income taxes |
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557 |
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407 |
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| Net income |
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$ |
2,364 |
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$ |
2,111 |
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| Net income per share: |
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| Basic |
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$ |
0.23 |
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$ |
0.21 |
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| Diluted |
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