September 4, 2007
FOR IMMEDIATE RELEASE FOR FURTHER INFORMATION
Bethlehem, Pa. Contact Joseph T. Svetik, President
610-691-2233
FIRST STAR BANCORP ANNOUNCES DIVIDEND DECLARATION AND PLANNED
STOCK PURCHASES BY EMPLOYEE STOCK OWNERSHIP PLAN
Bethlehem, PA, September 4, 2007. First Star Bancorp, Inc. (the “Company”) announced today that on August 21, 2007 the Company’s board of directors has declared a cash dividend of $.05 per share on the Company’s outstanding common stock. The cash dividend will be payable on October 9, 2007 to stockholders of record on September 19, 2007.
The Company reported net income for the three months ended June 30, 2007 of $614,000, or $0.63 per diluted share, compared to $664,000, or $0.67 per diluted share, for the three months ended June 30, 2006. Net income for the twelve months ended June 30, 2007 was $3,244,000, or $3.23 per diluted share, compared to $2,453,000, or $2.47 per diluted share, for the twelve months ended June 30, 2006. The increase was partly attributable to a recovery of a defaulted security. The Company had total assets of $555.35 million at June 30, 2007.
The Company previously announced that it expects to lend approximately $600,000 to the First Star Savings Bank Employee Stock Ownership Plan Trust (the “ESOP Trust”) during the fiscal year ending June 30, 2008. The ESOP Trust will use those funds, together with contributions that First Star Savings Bank makes to the ESOP, to purchase common stock of the Company in open market transactions from time to time, subject to market conditions
First Star Bancorp, Inc. is the holding company for First Star Savings Bank which serves the Lehigh Valley through its main office in Bethlehem and branch offices in Alburtis, Allentown, Bath, Nazareth, Palmer Township and Wind Gap. Deposits at First Star Savings Bank are insured up to the legal maximum (generally, $100,000 per depositor) by the Federal Deposit Insurance Corporation (FDIC).
This news release may contain forward-looking statements, which can be identified by the use of words such as “believes,” “expects,” “anticipates,” “estimates” or similar expressions. Such forward-looking statements and all other statements that are not historic facts are subject to risks and uncertainties which could cause actual results to differ materially from those currently anticipated due to a number of factors. These factors include, but are not limited to, general economic conditions, changes in the interest rate environment, legislative or regulatory changes that may adversely affect our business, changes in accounting policies and practices, changes in competition and demand for financial services, adverse changes in the securities markets, changes in deposit flows and changes in the quality or composition of the Company’s loan or investment portfolios. Should one or more of these risks materialize, actual results may vary from those anticipated, estimated or projected. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Except as may be required by applicable law or regulation, the Company assumes no obligation to update any forward-looking statements.
FIRST STAR BANCORP, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS
(Unaudited)
(Dollars in thousands, except per share data)
Selected Financial
Data:
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At June 30, 2007 |
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At June 30, 2006 |
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Total assets.................................................. |
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$555,348 |
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$591,966 |
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Cash and cash equivalents............................. |
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3,576 |
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6,340 |
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Investment securities..................................... |
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145,444 |
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126,696 |
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Mortgage-backed securities .......................... |
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162,257 |
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198,543 |
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Loans receivable, net.................................... |
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227,248 |
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239,858 |
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Deposits....................................................... |
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354,515 |
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351,059 |
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Borrowings................................................... |
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155,600 |
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202,321 |
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Stockholder’s equity...................................... |
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38,625 |
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32,318 |
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Non-performing loans.................................... |
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3,626 |
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1,930 |
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Non-performing assets.................................. |
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$ 0 |
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$ 164 |
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Selected Operations Data:
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Three Months Ended June 30, |
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Twelve Months Ended June 30, |
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2007 |
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2006 |
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2007 |
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2006 |
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Interest and dividend income..... |
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$7,996 |
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$7,899 |
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$32,746 |
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$29,782 |
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Interest expense .......................... |
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5,738 |
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5,578 |
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23,419 |
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20,723 |
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Net interest income................. |
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2,258 |
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2,321 |
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9,327 |
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9,059 |
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Provision for loan losses............ |
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150 |
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0 |
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371 |
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65 |
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Net interest income after
provision for loan losses......... |
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2,108 |
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2,321 |
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8,956 |
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8,994 |
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Other income................................. |
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244 |
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203 |
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1,773 |
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928 |
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Other expense............................... |
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1,482 |
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1,569 |
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6,070 |
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6,460 |
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Income before taxes..................... |
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870 |
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995 |
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4,659 |
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3,462 |
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Provision for income taxes.......... |
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256 |
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291 |
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1,415 |
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1,009 |
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Net Income............................... |
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614 |
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664 |
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3,244 |
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2,453 |
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Earnings per share basic |
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$1.02 |
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$1.11 |
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$5.43 |
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$4.10 |
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Earnings per share diluted |
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$0.63 |
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$0.67 |
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$3.23 |
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$2.47 |
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