EX-99.1 2 ex99-1.htm EXHIBIT 99.1 ex99-1.htm

 
For Immediate Release
 
Date:
July 26, 2007
       
 
Contact:
Mary Beth Steiginga,
   
Assistant Secretary
     
630 Godwin Avenue
     
Midland Park, NJ 07432
     
201- 444-7100


PRESS RELEASE

Stewardship Financial Corporation Announces
Record Earnings for the Second Quarter, 2007
 

 
Midland Park, NJ – July 26, 2007 - Stewardship Financial Corporation (NASDAQ:SSFN), parent of Atlantic Stewardship Bank, announced today net income for the three (3) months ended June 30, 2007 of $1.45 million or $0.29 basic and fully diluted earnings per share, an increase of 24.6% and 26.1% respectively, as compared to net income of $1.17 million, or $0.23 basic and fully diluted earnings per share for the same three (3) month period in 2006.

For the six (6) months ended June 30, 2007, Stewardship Financial Corporation reported net income of $2.54 million or $0.51 basic earnings per share, an increase of 11.6% and 13.3% respectively, as compared to net income of $2.28 million or $0.45 per share for the same six (6) month period in 2006.  Diluted earnings per share were $0.50 for the six (6) months ended June 30, 2007, an increase of 11.1% over the diluted earnings per share of $0.45 for the six (6) months ended June 30, 2006.  Per share calculations have been adjusted for a 5% stock dividend paid in November 2006.

 
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Stewardship Financial Corporation’s President and Chief Executive Officer Paul Van Ostenbridge stated, “We are pleased to report on our performance for the period ending June 30, 2007.  Core earnings remain strong despite the continued challenges of growing core deposits in the current interest rate environment.  We are encouraged by the growth in our loan portfolio with our commercial products leading the way.  Our newest branch in Wyckoff is bringing in strong deposit relationships and we look forward to our newest branch opening in Westwood, New Jersey during the third quarter of 2007.”

Stewardship Financial Corporation’s total assets reached $538.8 million at June 30, 2007, compared to $495.4 million at June 30, 2006, resulting in growth of 8.8%.  Total loans increased 6.6% to $383.7 million at June 30, 2007, compared to $359.8 million at June 30, 2006.  Total deposits were $451.5 million at June 30, 2007, compared to $419.0 million a year ago, resulting in growth of 7.8%.  Total stockholders’ equity increased 10.2% to $38.6 million at June 30, 2007, compared to $35.0 million a year ago.  Earnings for the quarter and year ended June 30, 2007 were impacted by the receipt of a life insurance payout, which resulted in miscellaneous income of $459,000.

Stewardship Financial Corporation’s subsidiary, the Atlantic Stewardship Bank, has banking offices in Midland Park, Hawthorne (2), Montville, Pequannock, Ridgewood, Waldwick, Wayne (3), and Wyckoff, New Jersey.  Our 12th branch is expected to open in Westwood, New Jersey during the third quarter of 2007, which will be followed by a new location in North Haledon, New Jersey in the first quarter of 2008.  The bank is known for tithing 10% of its pre-tax profits to Christian and local charities.  We invite you to visit our website at www.asbnow.com for additional information.

 
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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.




 






 
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Stewardship Financial Corporation           
  
Financial Highlights           
  
(unaudited)           
  
(In thousands, except per share data)           
  
                         
                         
   
Six Months Ended  
    
Three Months Ended 
  
   
June 30,  
    
June 30,  
  
                         
   
2007
    
2006
    
2007
    
2006
  
Selected Operating Data:
                        
Total interest income
   $
16,049
     $
14,318
     $
8,117
     $
7,334
  
Total interest expense
    
6,574
      
4,879
      
3,315
      
2,572
  
Net interest income before provision
                                
     for loan loss
    
9,475
      
9,439
      
4,802
      
4,762
  
Provision for loan loss
    
190
      
160
      
180
      
110
  
Net interest income after provision
                                
     for loan loss
    
9,285
      
9,279
      
4,622
      
4,652
  
                                 
Noninterest income
    
2,502
      
1,902
      
1,506
      
1,032
  
                                 
Noninterest expense
    
8,177
      
7,641
      
4,182
      
3,863
  
                                 
Income before income tax expense
    
3,610
      
3,540
      
1,946
      
1,821
  
Income tax expense
    
1,070
      
1,264
      
492
      
654
  
Net income
   $
2,540
     $
2,276
     $
1,454
     $
1,167
  
                                 
Basic earnings per share
   $
0.51
     $
0.45
     $
0.29
     $
0.23
  
Diluted earnings per share
   $
0.50
     $
0.45
     $
0.29
     $
0.23
  
                                 

   
At June 30,
  
   
2007
    
2006
  
Selected Financial Data:
            
Total assets
   $
538,837
     $
495,367
  
Total loans, net of deferred loan fees
    
383,653
      
359,804
  
Allowance for loan losses
    
4,181
      
4,011
  
Total deposits
    
451,478
      
418,956
  
Stockholders' equity
    
38,614
      
35,029
  

   
At or for the six month period ended
  
   
June 30,
  
   
2007
    
2006
  
Selected Financial Ratios:
            
Annualized return on average assets (ROA)
     0.99 %     0.95 %
Annualized return on average equity (ROE)
     13.41 %     13.36 %
Tier 1 equity to total assets
     8.47 %     8.48 %
Book value per share
   $
7.65
     $
6.95
  
                 
                 
All share data has been restated to include the effect of a 5% stock dividend paid in November, 2006.
          
 
 
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