SOURCE: ASB Financial Corp.

July 26, 2005 12:46 ET

ASB Financial Corp. Reports Net Earnings for the Fiscal Year and Quarter Ended June 30, 2005

PORTSMOUTH, OH -- (MARKET WIRE) -- July 26, 2005 -- ASB Financial Corp., parent company of American Savings Bank, fsb, reported net earnings for the fiscal year ended June 30, 2005 of $2.2 million, or diluted earnings per share of $1.27, an increase of $145,000, or 7.2%, from the $2.0 million, or $1.18 per diluted share in net earnings recorded for the fiscal year ended June 30, 2004.

The increase in net earnings for the fiscal year ended June 30, 2005, was due primarily to increases of $671,000, or 95.2% in other income, reflecting increases in gains on sales of investments, and $171,000, or 2.9% in net interest income. This was partially offset by increases of $202,000, or 182% in the provision for losses on loans, $353,000, or 9.4% in general administrative and other expense and $142,000, or 19.1% in the provision for federal income taxes. Earnings per share have increased by 5.0% due to the increase in net income. Additionally, for the sixth straight year, the Company has increased its quarterly dividend by $.01 per share to $.16, reflecting a 6.7% increase in the dividends paid to shareholders.

Net earnings for the three months ended June 30, 2005 amounted to $628,000, or diluted earnings per share of $.37, compared to net earnings of $548,000, or $.34 per diluted share for the comparable quarter in 2004. The increase in net earnings for the quarter ended June 30, 2005, was due primarily to increases of $620,000 or 326.3% in other income and $26,000 or 1.8% in net interest income. These were partially offset by increases of $135,000, or 465.5% in the provision for losses on loans, $356,000, or 42.6% in general administrative and other expenses and $74,000, or 30.5% in the provision for federal income taxes.

At June 30, 2005, ASB Financial Corp. reported total assets of $184.5 million, total liabilities of $165.3 million, including deposits of $143.3 million, and shareholders' equity of $19.2 million.

On July 8, 2005, the shareholders of ASB Financial Corp. approved a one for three hundred reverse stock split to be immediately followed by a three hundred for one forward stock split. As a result of this transaction, new share certificates must be issued to all shareholders reflecting the new number of shares owned as well as our new CUSIP number. To facilitate this change it is necessary for all shareholders who own their shares in certificate form to tender all old certificates to our transfer agent. Detailed information regarding the procedures for tendering certificates will be mailed to you prior to July 31, 2005. Failure to tender old certificates will result in a delay in the receipt of future dividends as well as funds for any cashed out shares.

American Savings Bank, fsb, serving Portsmouth, Waverly and the Southern Ohio area was founded in 1892.


                       ASB Financial Corp.
          CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
                           (In thousands)

                                                     June 30,      June 30,
        ASSETS                                          2005          2004

Cash and cash equivalents                           $  11,864     $   7,563
Investment securities                                   9,038        12,487
Mortgage-backed securities                              9,556        11,768
Loans receivable                                      146,134       129,821
Other assets                                            7,890         4,732
                                                    ---------     ---------

  Total assets
                                                    $ 184,482     $ 166,371
                                                    =========     =========
        LIABILITIES AND SHAREHOLDERS' EQUITY

Deposits                                            $ 143,278     $ 136,761
Borrowings                                             20,284        10,899
Other liabilities                                       1,726         1,287
                                                    ---------     ---------
  Total liabilities                                   165,288       148,947

Shareholders' equity                                   19,194        17,424
                                                    ---------     ---------

  Total liabilities and shareholders' equity        $ 184,482     $ 166,371
                                                    =========     =========


                              ASB Financial Corp.
                CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
                      (In thousands, except share data)

                                        Three months ended    Year ended
                                             June 30,           June 30,
                                         2005      2004      2005      2004

Total interest income                  $2,464    $2,245    $9,571    $8,954

Total interest expense                    974       780     3,497     3,051
                                       ------    ------    ------    ------

  Net interest income                   1,490     1,464     6,074     5,903

Provision for losses on loans             164        29       313       111
                                       ------    ------    ------    ------

  Net interest income after provision
   for losses on loans                  1,326     1,436     5,761     5,792

Other income                              810       190     1,376       705

General, administrative and
 other expense                          1,191       835     4,096     3,743
                                       ------    ------    ------    ------

  Earnings before income taxes            945       791     3,041     2,754

Federal income taxes                      317       243       886       744
                                       ------    ------    ------    ------

  NET EARNINGS                         $  628    $  548    $2,155    $2,010
                                       ======    ======    ======    ======

  EARNINGS PER SHARE
  Basic                                $  .37    $  .34    $ 1.27    $ 1.22
                                       ======    ======    ======    ======

  Diluted                              $  .37    $  .33    $ 1.27    $ 1.18
                                       ======    ======    ======    ======

Contact Information

  • CONTACT:
    Robert M. Smith, President or
    Michael L. Gampp, CFO
    ASB Financial Corp.
    503 Chillicothe Street
    Portsmouth, Ohio 45662-4015
    (740) 354-3177