March 8, 2008
FOR IMMEDIATE RELEASE FOR FURTHER INFORMATION
Bethlehem, Pa. Contact Joseph T. Svetik, President
610-691-2233
First Star Bancorp, Inc. reported net income for the nine months ended March 31, 2008 of $2,168,000, a decrease of $462,000, or 18%, as compared to net income of $2,630,000 for the nine months ended March 31, 2007. The decrease is primarily attributable to a reduction on the gain on sale of securities. Net interest income for the nine months ended March 31, 2008 was $6,940,000, representing a decrease of $129,000, or 2%, compared to net interest income of $7,069,000 for the nine months ended March 31, 2007.
First Star Bancorp, Inc. also reported net income for the quarter ended March 31, 2008 of $560,000, representing a decrease of $10,000, or 2%, as compared to net income of $570,000 for the three months ended March 31, 2007. Net interest income for the three months ended March 31, 2008 was $2,137,000 a decrease of $9,000, or 1%, as compared to net interest income of $2,146,000 for the three months ended March 31, 2007. First Star Bancorp, Inc. had assets of $622.1 million at March 31, 2008.
The company also reported that it contributed approximately $600,000 to its employee stock ownership plan trust during the fiscal year ending June 30, 2008. The employee stock ownership plan trust purchased a corresponding amount of the stock of the company in open market transactions during the fiscal year and utilized 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 its 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, $250,000 per depositor) by the Federal Deposit Insurance Corporation (FDIC).
Forward Looking
Statements/Safe Harbor Provision
This release contains “forward-looking statements” that are based on assumptions and may describe future plans, strategies and expectations of the Company. These forward-looking statements are generally identified by the use of the words “believe,” “expect,” “intend,” “anticipate,” “estimate,” “project” or similar expressions. The Company’s ability to predict results or the actual effect of future plans or strategies is inherently uncertain. Factors that could have a material adverse effect on the operations of the Company and its subsidiaries include, but are not limited to, changes in market interest rates, regional and national economic conditions, legislative and regulatory changes, monetary and fiscal policies of the United States government, including policies of the loan or investment portfolios, demand for loan products, deposit flows, competition, demand for financial services in the Company’s market area, changes in the real estate market values in the Company’s market area, ability to operate new branch offices profitably and changes in relevant accounting principles and guidelines. These risks and uncertainties should be considered in evaluating any forward-looking statements and undue reliance should not be placed on such statements. Except as required by applicable law or regulation, the Company does not undertake, and specifically disclaims any obligation, to release publicly the result of any revisions that may be made to any forward-looking statements to reflect events or circumstances after the date of the statements or to reflect the occurrence
FIRST STAR BANCORP, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS
(Unaudited)
(Dollars in thousands, except per share data)
Selected Financial
Data:
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At Mar 31, 2008 |
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At June 30, 2007 |
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Total assets.................................................. |
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$622,056 |
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$555,348 |
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Cash and cash equivalents............................. |
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26,092 |
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3,576 |
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Investment securities..................................... |
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105,950 |
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145,444 |
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Mortgage-backed securities .......................... |
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245,802 |
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162,257 |
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Loans receivable, net.................................... |
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220,908 |
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227,248 |
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Deposits....................................................... |
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339,122 |
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354,515 |
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Borrowings................................................... |
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238,957 |
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155,600 |
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Stockholder’s equity...................................... |
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38,377 |
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38,625 |
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Non-performing loans.................................... |
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3,580 |
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3,626 |
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Non-performing assets.................................. |
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$ 609 |
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$ - |
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Selected Operations Data:
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Three Months Ended March 31, |
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Nine Months Ended March 31, |
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2008 |
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2007 |
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2008 |
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2007 |
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Interest and dividend income..... |
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$7,683 |
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$7,959 |
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$24,240 |
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$24,750 |
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Interest expense .......................... |
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5,546 |
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5,813 |
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17,300 |
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17,681 |
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Net interest income................. |
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2,137 |
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2,146 |
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6,940 |
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7,069 |
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Provision for loan losses............ |
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90 |
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0 |
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165 |
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221 |
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Net interest income after provision
for loan losses......... |
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2,047 |
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2,146 |
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6,775 |
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6,848 |
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Other income................................. |
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369 |
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254 |
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881 |
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1,529 |
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Other expense............................... |
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1,693 |
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1,605 |
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4,697 |
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4,588 |
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Income before taxes..................... |
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723 |
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795 |
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2,959 |
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3,789 |
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Provision for income taxes.......... |
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163 |
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225 |
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791 |
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1,159 |
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Net Income............................... |
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560 |
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570 |
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2,168 |
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2,630 |
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Earnings per share basic |
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$0.34 |
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$0.29 |
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$2.26 |
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$2.75 |
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Earnings per share diluted |
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$0.21 |
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$0.19 |
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$1.35 |
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$1.63 |
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