ESB Financial Corporation Announces Record Earnings for 2011

ESB Financial Corporation

/quotes/zigman/67481/quotes/nls/esbf ESBF

, the parent company of ESB
Bank, today announced earnings of $1.02 per diluted share on net income
of $14.9 million for the year ended December 31, 2011, which represents
a 4.1% increase in net income per diluted share as compared to earnings
of $0.98 per diluted share on net income of $14.2 million for the year
ended December 31, 2010. The Company’s return on average assets and
return on average equity were 0.76% and 8.40%, respectively, for the
year ended December 31, 2011 compared to 0.73% and 8.26%, respectively,
for the year ended December 31, 2010.

For the three months ended December 31, 2011, the Company announced
earnings of $0.21 per diluted share on net income of $3.0 million, which
represents an 8.7% decrease in net income per diluted share as compared
to earnings of $0.23 per diluted share on net income of $3.4 million for
the quarter ended December 31, 2010. The Company’s annualized return on
average assets and return on average equity were 0.61% and 6.65%,
respectively, for the quarter ended December 31, 2011 compared to 0.71%
and 7.86%, respectively, for the quarter ended December 31, 2010.

Commenting on the quarter and year end results, Charlotte A. Zuschlag,
President and Chief Executive Officer of the Company, stated, “The Board
of Directors, senior management and I are pleased with the record
earnings for the year ended December 31, 2011, making 2011 the third
consecutive year that the Company has reported record earnings.” Ms.
Zuschlag continued, “The past several years have presented a challenging
time for the banking industry. Our philosophy has been to manage the
interest rate margin without compromising asset quality or future
earnings potential while continuing to offer quality products to our
customers. We accomplished this philosophy by challenging our employees
to actively pursue new customers through commercial, public and personal
checking account relationships. The results continue to be outstanding.
The overall deposit growth for the year ended December 31, 2011 was
$143.8 million or 14.2% when compared to December 31, 2010. Included in
the $143.8 million is growth of approximately $111.0 million in low cost
core deposits.” Ms. Zuschlag continued by stating “these results as well
as the prior year growth of approximately $51.2 million in core deposits
has fueled the improvement to our cost of funds which decreased 39 basis
points to 2.00% when compared to 2.39% for the year ended December 31,
2010 and has contributed towards our ability to maintain our net
interest margin which increased slightly in 2011 to 2.67% when compared
to 2.62% at December 31, 2010. This steadfast policy in managing and
growing our interest rate margin has minimized the effect of impairment
related charges on securities and joint ventures on our income in 2011.”
Ms. Zuschlag concluded by stating, “Management will continue to strive
to pursue investment and growth opportunities that will provide a sound
investment return to our shareholders, such as the recent construction
of our 25th office in Cranberry Township, Butler County,
which opened in the fourth quarter of 2011.”

Consolidated net income for the year ended December 31, 2011 increased
$679,000 or 4.8% to $14.9 million from $14.2 million as compared to the
year ended December 31, 2010. This increase was a result of an increase
in net interest income of $1.1 million as well as decreases in provision
for loan losses and income taxes of $274,000 and $173,000, respectively,
partially offset by a decrease in noninterest income of $161,000 and
increases in noninterest expense and noncontrolling interest of $249,000
and $478,000, respectively.

Consolidated net income for the quarter ended December 31, 2011
decreased $417,000 to $3.0 million from $3.4 million, as compared to the
quarter ended December 31, 2010. This net decrease was the result of a
decrease in noninterest income of $1.6 million and increases in
provision for loan losses and noncontrolling interest of $30,000 and
$14,000, respectively, partially offset by an increase in net interest
income of $553,000 and decreases in noninterest expense and provision
for income taxes of $83,000 and $624,000, respectively.

The decrease in noninterest income for the quarter ended December 31,
2011 was primarily the result of impairment charges on real estate joint
ventures, investment securities and derivatives of approximately $1.3
million, $364,000 and $148,000, respectively, as well as decreases in
fees and service charges and net gain on sale of loans of $62,000 and
$25,000. During the quarter ended December 31, 2010, the Company’s real
estate joint ventures had net income of $116,000 after incurring write
downs of $750,000 related to land acquisition and development costs as
well as unit construction costs.

The Company’s consolidated total assets increased $50.9 million, or
2.7%, to $1.96 billion at December 31, 2011, from $1.91 billion at
December 31, 2010. Securities increased $52.4 million, or 4.9%, to $1.1
billion and net loans receivable increased $8.0 million, or 1.3%, to
$648.9 million. Total liabilities increased $39.2 million, or 2.2%, to
$1.8 billion at December 31, 2011. Deposits increased $143.8 million, or
14.2%, to $1.2 billion at December 31, 2011 while borrowed funds
decreased $108.5 million, or 15.2%, to $607.0 million.

Total stockholders’ equity was $179.1 million or 9.11% of total assets,
and book value per share was $12.34 at December 31, 2011 compared to
$167.4 million or 8.74% of total assets, and book value per share of
$11.63 at December 31, 2010.

The Company also announced that its annual meeting of stockholders will
be held on Wednesday, April 18, 2012 at 4:00 p.m. at the Connoquenessing
Country Club in Ellwood City, Pennsylvania.

ESB Financial Corporation is the parent holding company of ESB Bank, and
offers a wide variety of financial products and services through 25
offices in the contiguous counties of Allegheny, Lawrence, Beaver and
Butler in Pennsylvania. The common stock of the Company is traded on The
NASDAQ Stock Market under the symbol “ESBF”. We make available on our
web site, which is located at ,
our annual report on Form 10-K, quarterly reports on Form 10-Q and
current reports on Form 8-K, on the date which we electronically file
these reports with the Securities and Exchange Commission. Investors are
encouraged to access these reports and the other information about our
business and operations on our web site.

This news release contains certain forward-looking statements with
respect to the financial condition, results of operations and business
of the Company. Forward-looking statements are subject to various
factors which could cause actual results to differ materially from these
estimates. These factors include, but are not limited to, changes in
general economic conditions, interest rates, deposit flows, loan demand,
competition, legislation or regulation and accounting principles,
policies or guidelines, as well as other economic, competitive,
governmental, regulatory and accounting and technological factors
affecting the Company’s operations.

Financial Highlights
(Dollars in Thousands – Except Per Share Amounts)
Year Ended Three Months
December 31, Ended December 31,
2011 2010 2011 2010
———- ———- ————— —————
Interest income $ 79,227 $ 84,864 $ 19,256 $ 20,207
Interest expense 35,140 41,897 8,300 9,804
—— —— ——— ———
Net interest income 44,087 42,967 10,956 10,403
Provision for loan losses 1,130 1,404 330 300
—— —— ——— ———
Net interest income after provision for
loan losses 42,957 41,563 10,626 10,103
Noninterest income 4,306 4,467 (59) 1,574
Noninterest expense 28,062 27,813 7,154 7,237
—— —— ——— ———
Income before provision for income taxes 19,201 18,217 3,413 4,440
Provision for income taxes 3,380 3,553 314 938
—— —— ——— ———
Net income 15,821 14,664 3,099 3,502
Less: Net income attributable to noncontrolling interest 911 433 98 84
—— —— ——— ———
Net income attributable to ESB Financial Corporation $ 14,910 $ 14,231 $ 3,001 $ 3,418
== ====== == ====== ==== ========= ==== =========
Net Income per share:
Basic $ 1.03 $ 0.99 $ 0.21 $ 0.24
Diluted $ 1.02 $ 0.98 $ 0.21 $ 0.23
Net Interest Margin 2.67% 2.62% 2.64% 2.59%
Annualized return on average assets 0.76% 0.73% 0.61% 0.71%
Annualized return on average equity 8.40% 8.26% 6.65% 7.86%
12/31/11 12/31/10
————— —————
Total assets $ 1,964,791 $ 1,913,867
Cash and cash equivalents 38,848 35,707
Total investment securities 1,130,116 1,077,672
Loans receivable, net 648,921 640,887
Customer deposits 1,156,410 1,012,645
Borrowed funds (includes subordinated debt) 606,960 715,456
Stockholders’ equity 179,075 167,353
Book value per share $ 12.34 $ 11.63
Average equity to average assets 9.08% 8.87%
Allowance for loan losses to loans receivable 0.98% 1.00%
Non-performing assets to total assets 0.88% 0.75%
Non-performing loans to total loans 2.00% 2.00%

SOURCE: ESB Financial Corporation

ESB Financial
Charles P. Evanoski, 724-758-5584
Group Senior Vice President
Chief Financial Officer

Copyright Business Wire 2012


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Volume: 42,348
Feb. 3, 2012 4:00p

EU to seize more financial control

THE EUROPEAN Union is to gain dramatic new powers to control tax and spending in crisis-hit eurozone countries under a deal to save the currency.

Brussels will have to agree the national budgets of heavily indebted countries under a deal to be signed tomorrow at a summit in the city.

The move will mean Greece losing control over its own budget after Germany and the International Monetary Fund laid down increasingly harsh conditions for the indebted nation to receive its second euro;119bn eurozone bailout.

Christine Lagarde, the managing director of the IMF, yesterday revealed that a fiscal compact was set to be signed by European Union leaders at the crucial leaders summit tomorrow.

In addition to having a monetary zone, the eurozone needs to develop this fiscal consolidation compact that is currently under work and that we hope will be validated on Monday at the leaders summit.

A leaked EU document revealed German plans for Greece to agree all its spending plans with a eurozone budget commissioner. The commissioner would have the power to veto tax and spending plans.

The scheme sparked anger in Athens last night. Anna Diamantopoulou, the education minister and a former EU commissioner, described the idea as the product of a sick imagination in an interview with local television.

And the European Unions executive body is also against the calls from Germany.

The European Commission said yesterday that executive tasks must remain the full responsibility of the Greek government.

Mondays meeting will also see European leaders discuss ways to help their economies grow amid fears that the continent may slide back into recession this year.

While Germany, the continents largest economy, is calling for budget cuts and greater fiscal discipline, the IMF and others warn that such austerity could strangle growth.

Some countries have to go full-speed ahead to do this fiscal consolidation, but other countries have space. They should explore what to do… in order to help themselves. It has to be tailor-made.

Tim Geithner, the American treasury secretary, has also warned of the risk that austerity could lead to a recessionary cycle.

There is a risk that every disappointment in growth will be met with an austerity that will feed the decline, and that is a cycle you have to arrest to solve financial crises, Mr Geithner said.

As Europes leaders plan to bind Europes economies closer together, Tory eurosceptics in the UK are to put pressure on their leader to harness a unique block opt-out which will allow the UK to withdraw from a raft of laws already ceded to the EU.

The mechanism would let Britain free itself from initiatives such as the European Arrest Warrants (EAWs) and greater sharing of DNA data of British nationals with foreign police forces.

It would also thwart plans to give the European Court of Justice greater jurisdiction over British courts.



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ViewPoint Financial Group, Inc. Announces Quarterly Cash Dividend, Annual …

PLANO, Texas, Jan. 27, 2012 /PRNewswire via COMTEX/ —
ViewPoint Financial Group, Inc.

/quotes/zigman/119009/quotes/nls/vpfg VPFG

, the holding company for ViewPoint Bank, N.A., today announced a quarterly cash dividend of $0.06 per share. The cash dividend is payable on February 23, 2012, to shareholders of record as of the close of business on February 9, 2012.

The Company also today announced that it will be holding its Annual Meeting of Shareholders on Tuesday, May 15, 2012. The record date for the meeting has been fixed as March 26, 2012. More information about the Annual Meeting will be sent to Company shareholders in April 2012.

ViewPoint Financial Group, Inc. is the holding company for ViewPoint Bank, N.A. ViewPoint Bank, N.A. operates 25 community bank offices and nine loan production offices. For more information, please visit or .

When used in filings by the Company with the Securities and Exchange Commission (the “SEC”) in the Company’s press releases or other public or shareholder communications, and in oral statements made with the approval of an authorized executive officer, the words or phrases “will likely result,” “are expected to,” “will continue,” “is anticipated,” “estimate,” “project,” “intends” or similar expressions are intended to identify “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are subject to certain risks and uncertainties, including, among other things, changes in economic conditions, legislative changes, changes in policies by regulatory agencies, fluctuations in interest rates, the risks of lending and investing activities, including changes in the level and direction of loan delinquencies and write-offs and changes in estimates of the adequacy of the allowance for loan losses, the Company’s ability to access cost-effective funding, fluctuations in real estate values and both residential and commercial real estate market conditions, demand for loans and deposits in the Company’s market area, the industry-wide decline in mortgage production, competition, changes in management’s business strategies and other factors set forth under Risk Factors in the Company’s Form 10-K, that could cause actual results to differ materially from historical earnings and those presently anticipated or projected. The Company wishes to advise readers that the factors listed above could materially affect the Company’s financial performance and could cause the Company’s actual results for future periods to differ materially from any opinions or statements expressed with respect to future periods in any current statements.

The Company does not undertake – and specifically declines any obligation – to publicly release the result of any revisions which may be made to any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.

SOURCE ViewPoint Financial Group, Inc.

Copyright (C) 2012 PR Newswire. All rights reserved


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Volume: 113,635
Feb. 1, 2012 3:59p

Faruqi & Faruqi, LLP Announces Investigation of Enterprise Financial Services …

NEW YORK, Jan. 28, 2012 /PRNewswire via COMTEX/ —
Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential violations of federal securities law at Enterprise Financial Services Corp. (“Enterprise Financial” or the “Company”)

/quotes/zigman/87669/quotes/nls/efsc EFSC


The investigation focuses on the Company’s May 24, 2011 stock offering underwritten by Keefe, Bruyette & Woods and the Company’s January 25, 2012 announcement that the financial statements included in its Annual Report on Form 10-K for the year ended December 31, 2010, and the interim financial statements included in its Quarterly Reports on Form 10-Q for each of the periods ended March 31, June 30, and September 30, for 2010 and 2011, respectively, should no longer be relied upon. Enterprise Financial stated that it had discovered an error in its process used to record income on loans covered under loss share agreements with the Federal Deposit Insurance Corporation (FDIC) during the foregoing periods. As a result, the Company admitted that it had overstated its income during these periods.

Request more information now by clicking here:

Take ActionIf you purchased Enterprise Financial stock in the Company’s May 24, 2011 stock offering underwritten by Keefe, Bruyette & Woods and would like to discuss your legal rights, visit . You can also contact us by calling Richard Gonnello or Francis McConville toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to or Faruqi & Faruqi, LLP also encourages anyone with information regarding Enterprise Financial’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.

Attorney Advertising. The law firm responsible for this advertisement is Faruqi & Faruqi, LLP ( ). Prior results do not guarantee or predict a similar outcome with respect to any future matter. We welcome the opportunity to discuss your particular case. All communications will be treated in a confidential matter.FARUQI & FARUQI, LLP369 Lexington Avenue, 10th FloorNew York, NY 10017Attn: Richard Gonnello, Francis McConville, Telephone: (877) 247-4292 or (212) 983-9330

SOURCE Faruqi & Faruqi, LLP

Copyright (C) 2012 PR Newswire. All rights reserved


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Volume: 2,875
Jan. 31, 2012 11:29a

Philly School District’s financial assurances leave city controller Butkovitz …

The School District of Philadelphias new chief recovery officer responded Friday to the city controllers request for information about bridging a funding gap of at least $61 million by June 30.

But City Controller Alan Butkovitz said he was not sure whether the district fully had addressed his concerns about the school systems financial viability.

He said an initial review of the responses contained in the three-page letter from Recovery Officer Thomas E. Knudsen has done little to satisfy our concern, but there are ongoing written communications going back and forth to clarify our respective positions.

On Wednesday, Butkovitz said he might have to include a warning in the districts annual financial report that could hamper the districts ability to borrow money and sell bonds.

Unless the School District management can provide compelling evidence to alleviate this doubt, our Independent Auditors Report will include an explanatory paragraph to reflect our conclusion of substantial doubt [about the districts ability] to continue as a going concern.

That report, prepared by his office, is included in the districts comprehensive financial report sent each year to bond-rating agencies and bondholders. The target date for the report is Feb. 10.

Butkovitz asked Knudsen to address a series of concerns including the districts continued ineffectiveness in solving its growing budget gap and its limited authority to further cut costs by the end of business Friday.

Knudsens letter, which arrived several hours early, stressed that the district is very much a going concern and the districts management and governing board are unwavering in our commitment that it remains so.

He said: We can fully assure that the School District is in no danger of failing to meet its debt service and payroll obligations in the foreseeable future as a result of the actions we have already implemented and intend to implement.

Knudsen said he understood that Butkovitzs audit report might mention the serious financial challenges facing the district. But in light of the actions the district is taking and will take, he said, Butkovitz should not have doubts about the School Districts ability, capacity, and determination to maintain itself as a going concern.

Knudsen, a financial turnaround specialist who has been in the job for barely a week, pointed out that the budget presentation at the Jan. 19 School Reform Commission meeting outlined steps that the district had just taken that would save $23.4 million. Those actions include cuts to central office budgets; a drastic scaling back of summer school; and imposing furloughs, salary freezes, and new health-benefit contributions for nonunionized employees.

The district is currently implementing all of these initiatives, which it expects will reduce the identified gap to $37.7 million, Knudsen wrote. He said the details were available for Butkovitz to verify.

Those moves, he said, would not require the district to make further cuts in school-based services that affect students.

The district has listed other possible areas for cuts, including eliminating gifted programs, spring athletics, and the remaining instrumental music programs. In an effort to avoid such drastic measures, Knudsen said, the district was pursuing other savings options.

One, he said, is working with the districts unions to agree to a set of measures to reduce the districts labor costs through June 30.

The School District has initiated discussions with its collective bargaining units, he wrote. We are hopeful that out of these discussions, a way will be found to finish the task of balancing the districts budget without further deep cuts to school programs.

Jerry Jordan, president of the Philadelphia Federation of Teachers, said Friday that he had not been contacted by the district. And Robert McGrogan, president of the Commonwealth Association of School Administrators, which represents the principals and other administrators, said he had not been contacted by the district about additional givebacks. His union already had deferred raises and agreed to other changes to help the district this fiscal year.

We have made concessions, he said. It has come from our pocketbooks.

District spokesman Fernando Gallard confirmed that the district met Friday morning with George Ricchezza, president of Local 32BJ, Service Employees International Union, which represents bus aides, cleaners, building engineers, and mechanics.

Ricchezza had been asking to meet with district officials for weeks.

His members did not receive expected raises this month, and pink slips went out to 1,406 members warning they could be laid off Dec. 31. The district has said that the number of union employees to be let go would depend on whether a dispute over contract concessions could be resolved.

Contact staff writer Martha Woodall at 215-854-2789 or