March 2, 2007

 

FOR IMMEDIATE RELEASE                                                            FOR FURTHER INFORMATION

Bethlehem, Pa.                                                                                      Contact Joseph T. Svetik, President

                                                                                                                610-691-2233

 

 

First Star Bancorp, Inc. reported net interest income for the three months ended December 31, 2006 of $2,691,000, representing an increase of $447,000, or 19.90%, as compared to net interest income of $2,244,000 for the three months ended December 31, 2005.  Net income for the three months ended December 31, 2006 was $1,378,000 an increase of $907,000, or 192.6%, as compared to net income of $471,000 for the three months ended December 31, 2005.  The increase is partly attributable to a recovery of a defaulted security.   

 

First Star Bancorp, Inc. reported net interest income for the six months ended December 31, 2006 of $5,004,000, representing an increase of $188,000, or 3.90%, as compared to net interest income of $4,816,000 for the six months ended December 31, 2005.  Net income for the six months ended December 31, 2006 was $2,060,000 an increase of $849,000, or 67.3%, as compared to net income of $1,231,000 for the six months ended December 31, 2005.  The increase is partly attributable to a recovery of a defaulted security.  First Star Bancorp, Inc. had assets of $571.69 million at December 31, 2006.

 

The company also reported that it expects to contribute approximately $300,000 to its employee stock ownership plan trust during the fiscal year ending June 30, 2007.  The employee stock ownership plan trust will purchase a corresponding amount of the stock of the company in open market transactions from time to time during the fiscal year and utilize such company contributions and/or borrowed funds to effect such stock purchases.   

 

First Star Bancorp, Inc. is the holding company for First Star Savings Bank which serves the Lehigh Valley through it’s main office in Bethlehem and branch offices in Alburtis, Allentown, Bath, Nazareth, Palmer Township and Wind Gap. Deposits at First Star are insured up to the legal maximum (generally, $100,000 per depositor) by the Federal Deposit Insurance Corporation (FDIC).