MIDLAND PARK, NJ--(Marketwire - April 27, 2009) - Stewardship Financial Corporation (
NASDAQ:
SSFN), parent of Atlantic Stewardship Bank, reported net income for the
first quarter ended March 31, 2009 of $1.2 million, or $0.20 per diluted
common share, as compared to net income of $1.1 million, or $0.19 per
diluted common share, for the three months ended March 31, 2008. All per
share calculations have been adjusted for a 5% stock dividend paid in
November 2008.
Net interest income was $5.6 million for the three months ended March 31,
2009, reflecting an 8.4% increase over the $5.2 million recorded for the
comparable prior year period.
The current period yield on earning assets of 5.81%, when compared to an
earning asset yield of 6.52% for the three months ended March 31, 2008,
reflects the effect of the current period lower interest rate environment.
Our cost of interest bearing liabilities has declined to 2.39% for the
three months ended March 31, 2009 as compared to 3.29% reported for the
same prior year period, reflecting lower rates paid on our customer
accounts, consistent with the lower interest rate environment. Despite
this difficult operating environment, the net interest spread and margin
for the three months ended March 31, 2009 of 3.42% and 3.87%, respectively,
are comparable to the net interest spread and margin of 3.23% and 3.94%,
respectively, for the three months ended March 31, 2008.
The Corporation recorded a $150,000 provision for loan losses for the three
months ended March 31, 2009 compared to a provision for loan losses of
$100,000 for the March 2008 period. Paul Van Ostenbridge, Stewardship
Financial Corporation's President and Chief Executive Officer, commented,
"Actively monitoring the performance of our loan portfolio is assisting us
in detecting credit concerns and enabling us to appropriately manage
delinquencies."
As previously reported, on December 31, 2008 the Corporation sold its
merchant servicing portfolio and, as a result, a decline in both
noninterest income and noninterest expense is reflected for the three
months ended March 31, 2009.
Total assets at March 31, 2009 were $649.0 million, reflecting total asset
growth of $37.2 million, or 6.1%, when compared to December 31, 2008. A
$38.5 million increase in the securities available for sale and held to
maturity portfolios reflect the investment and leveraging of the $10
million of preferred stock issued under the Capital Purchase Program. The
leveraging strategy employed the purchasing of mortgage-backed securities.
The principal and interest payments from these securities will be utilized
to fund loan originations. After adjusting for the sale of participations
in certain loans to other financial institutions, loans receivable were
relatively unchanged from December 31, 2008.
Deposits totaled $515.5 million at March 31, 2009, compared to $506.5
million at December 31, 2008. The introduction of our new Power Rate
checking product in mid-February contributed to the growth in deposits.
This new offering pays a premium rate of interest and refunds ATM fees
charged by other financial institutions. In return, the customer has
simple monthly qualification factors such as enrolling in online banking
with electronic statements and minimum levels of debit card usage.
A $13.6 million increase in other borrowings reflects funds utilized to
accomplish the leveraging of the $10 million of Capital Purchase Program
funds.
Total stockholders' equity at March 31, 2009 of $53.6 million includes the
increase from the $10 million received on January 30, 2009 under the
Capital Purchase Program (CPP). Van Ostenbridge stated, "The CPP was
designed by the Treasury to provide additional capital to only healthy,
well managed financial institutions, such as our Corporation. The $10
million, for which we issued equity securities under the CPP, has
solidified our already well capitalized position." Van Ostenbridge added,
"The increase in our base of capital further enhances our ability to
continue to grow assets and increases our ability to make new loans --
better serving the lending needs of consumers and businesses in our
market."
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. The Bank's Tithe amounts to $6.3
million in total donations since the program began.
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
Selected Consolidated Financial Information
(dollars in thousands, except per share amounts)
March 31, December 31, March 31,
2009 2008 2008
--------- ------------- ---------
Selected Financial Condition Data:
Cash and cash equivalents $ 11,820 $ 12,814 $ 16,533
Securities available for sale 106,577 90,023 88,242
Securities held to maturity 70,842 48,856 37,410
FHLB Stock 3,032 2,420 2,558
Loans receivable:
Loans receivable, gross 437,196 439,656 425,791
Allowance for loan losses (5,324) (5,166) (4,571)
Other, net (405) (387) (434)
--------- ------------- ---------
Loans receivable, net 431,467 434,103 420,786
Loans held for sale 1,968 394 2,246
Other assets 23,310 23,206 22,458
--------- ------------- ---------
Total assets $ 649,016 $ 611,816 $ 590,233
========= ============= =========
Total deposits $ 515,470 $ 506,531 $ 476,567
Other borrowings 50,500 36,900 41,425
Subordinated debentures 7,217 7,217 7,217
Securities sold under agreements to
repurchase 15,162 15,160 16,508
Other liabilities 7,087 3,212 6,378
Stockholders' equity 53,580 42,796 42,138
--------- ------------- ---------
Total liabilities and stockholders'
equity $ 649,016 $ 611,816 $ 590,233
========= ============= =========
Book value per common share $ 7.90 $ 7.70 $ 7.55
Equity to assets 8.26% 6.99% 7.14%
Asset Quality Data:
Nonaccrual loans $ 6,592 $ 4,230 $ 360
Loans past due 90 days or more and
accruing 414 353 703
Restructured loans 2,375 1,855 -
--------- ------------- ---------
Total nonperforming loans $ 9,381 $ 6,438 $ 1,063
========= ============= =========
Non-performing loans to total loans 2.15% 1.46% 0.25%
Non-performing loans to total assets 1.45% 1.05% 0.18%
Allowance for loan losses to
nonperforming loans 56.75% 80.24% 430.01%
Allowance for loan losses to total
gross loans 1.22% 1.18% 1.07%
All share data has been restated to include the effects of a 5% stock
dividend paid in November 2008.
Stewardship Financial Corporation
Selected Consolidated Financial Information
(dollars in thousands, except per share amounts)
For the three months ended
March 31,
--------------------------
2009 2008
------------ ------------
Selected Operating Data:
Interest income $ 8,473 $ 8,657
Interest expense 2,875 3,495
------------ ------------
Net interest and dividend income 5,598 5,162
Provision for loan losses 150 100
------------ ------------
Net interest and dividend income after
provision for loan losses 5,448 5,062
Non-interest income:
Fees and service charges 396 295
Bank owned life insurance 83 81
Gain on sales of mortgage loans 11 55
Gain on calls and sales of securities 39 41
Merchant processing 118 369
Other 60 135
------------ ------------
Total non-interest income 707 976
Non-interest expenses:
Salaries and employee benefits 2,059 2,016
Occupancy, net 472 449
Equipment 265 273
Data processing 305 308
Advertising 83 104
FDIC insurance premium 170 73
Charitable contributions 171 162
Merchant processing 108 325
Other 775 769
------------ ------------
Total non-interest expenses 4,408 4,479
------------ ------------
Income before income taxes 1,747 1,559
Income tax expense 560 498
------------ ------------
Net income 1,187 1,061
Dividends on preferred stock 84 -
------------ ------------
Net income available to common stockholders $ 1,103 $ 1,061
============ ============
Weighted avg. no. of diluted common shares 5,557,098 5,591,517
Diluted earnings per common share $ 0.20 $ 0.19
Return on average common equity 10.48% 10.30%
Return on average assets 0.76% 0.74%
Yield on average interest-earning assets 5.81% 6.52%
Cost of average interest-bearing liabilities 2.39% 3.29%
------------ ------------
Net interest rate spread 3.42% 3.23%
============ ============
Net interest margin 3.87% 3.94%
All share data has been restated to include the effects of a 5% stock
dividend paid in November 2008.
Contact Information: Contact:
Claire M. Chadwick
SVP and Chief Financial Officer
630 Godwin Avenue
Midland Park, NJ 07432
201-444-7100