STEWARDSHIP FINANCIAL CORP - FORM 8-K - EX-99.1 - EXHIBIT 99.1

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8-K - 8-K - STEWARDSHIP FINANCIAL CORP	pressrelease04-04x2017.htm



For immediate release		Contact:
		Claire M. Chadwick
		EVP and Chief Financial Officer
		630 Godwin Avenue
		Midland Park, NJ 07432
		P: 201-444-7100

PRESS RELEASE

Stewardship Financial Corporation Announces

Commencement of Common Stock Offering

Midland Park, NJ - April 4, 2017 - Stewardship Financial Corporation (NASDAQ: SSFN) (the “Corporation”), parent company of Atlantic Stewardship Bank serving Northern New Jersey, today announced that it has commenced an underwritten public offering of $15.0 million of its common stock. The Corporation expects to grant the underwriter a 30-day option to purchase up to an additional 15% of the shares sold in the offering.

Sandler O'Neill + Partners, L.P. is serving as the sole book-running manager for the offering. The shares will be issued pursuant to a registration statement filed with the Securities and Exchange Commission (the “SEC”) on Form S-1 (File No. 333-216878).

The Corporation expects to use the net proceeds of this offering to support organic growth and other general corporate purposes.

Additional Information Regarding the Offering

This press release is for informational purposes only and is not an offer to sell or the solicitation of an offer to buy any securities of the Corporation, which is made only by means of a prospectus, nor will there be any

Press Release - Midland Park, NJ

Stewardship Financial Corporation, continued April 4, 2017

sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. The Corporation has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Prospective investors, including current shareholders interested in participating in the offering, should read the preliminary prospectus in that registration statement and other documents that the Corporation has filed with the SEC for more complete information about the Corporation and the offering. Investors may obtain copies of the preliminary prospectus relating to the offering without charge by visiting the SEC's website at www.sec.gov, or from Sandler O’Neill + Partners, L.P., 1251 Avenue of the Americas, 6th Floor, New York, New York 10020, Attn: Syndicate Operations, or by phone at 1-866-805-4128.

About Stewardship Financial Corporation

Stewardship Financial Corporation’s subsidiary, Atlantic Stewardship Bank (“ASB”) is a full-service community bank serving both individuals and businesses. ASB is known for tithing, or sharing, 10% of its pre-tax profits with Christian and local charities. To date, ASB’s total tithe donations total over $9 million. ASB maintains 11 banking locations in NJ and plans to open a twelfth branch in Morristown in late spring. Current locations include: Midland Park, Hawthorne, Montville, North Haledon, Pequannock, Ridgewood, Waldwick, Westwood, Wyckoff and two offices in Wayne.

Forward-Looking Statements

This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include, but are not limited to, statements concerning future business, revenue and earnings. These statements are not historical facts or guarantees of future performance, events or results. There are risks, uncertainties and other factors that could cause the actual

Press Release - Midland Park, NJ

Stewardship Financial Corporation, continued April 4, 2017

results of Stewardship Financial Corporation to differ materially from the results expressed or implied by such statements. Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements include competitive pressures among financial services companies, interest rate trends, general economic conditions, changes in legislation or regulatory requirements, effectiveness at achieving stated goals and strategies, and difficulties in achieving operating efficiencies. These risks and uncertainties are more fully described in Stewardship Financial Corporation’s Annual and Quarterly Reports filed with the Securities and Exchange Commission. Forward-looking statements speak only as of the date they are made. Stewardship Financial Corporation undertakes no obligation to publicly update or revise forward-looking information, whether as a result of new, updated information, future events or otherwise.

Stewardship Financial Corporation

Selected Consolidated Financial Information

(dollars in thousands, except per share amounts)

(unaudited)



	December 31,			September 30,			June 30,			March 31,			December 31,
	2016			2016			2016			2016			2015

Selected Financial Condition Data:
Cash and cash equivalents	$	11,680		$	21,025		$	13,901		$	13,319		$	10,910
Securities available for sale	98,583			103,546			98,533			97,637			93,354
Securities held to maturity	52,330			54,179			65,666			62,427			60,738
FHLB Stock	3,515			2,425			2,650			2,608			2,608
Loans held for sale	773			300			581			783			1,522
Loans receivable:
Loans receivable, gross	604,083			552,106			537,638			528,011			526,477
Allowance for loan losses	(7,905		)	(8,150		)	(8,388		)	(8,540		)	(8,823		)
Other, net	(226		)	(110		)	(25		)	(64		)	(98		)
Loans receivable, net	595,952			543,846			529,225			519,407			517,556
Other real estate owned, net	401			834			834			1,013			880
Bank owned life insurance	16,558			16,439			16,320			14,212			14,111
Other assets	15,743			15,333			14,877			15,251			16,209
Total assets	$	795,535		$	757,927		$	742,587		$	726,657		$	717,888

Non-interest bearing deposits	$	169,306		$	172,072		$	160,461		$	154,201		$	147,828
Interest-bearing deposits	489,624			474,012			466,008			458,225			456,925
Total deposits	658,930			646,084			626,469			612,426			604,753
Other borrowings	59,200			35,000			40,000			40,000			40,000
Subordinated debentures and subordinated notes	23,252			23,235			23,219			23,203			23,186
Other liabilities	2,766			2,040			2,213			1,836			2,376
Total liabilities	744,148			706,359			691,901			677,465			670,315
Shareholders' equity	51,387			51,568			50,686			49,192			47,573
Total liabilities and shareholders' equity	$	795,535		$	757,927		$	742,587		$	726,657		$	717,888

Gross loans to deposits	91.68		%	85.45		%	85.82		%	86.22		%	87.06		%

Equity to assets	6.46		%	6.80		%	6.83		%	6.77		%	6.63		%

Book value per share	$	8.39		$	8.43		$	8.29		$	8.05		$	7.82

Asset Quality Data:
Nonaccrual loans	$	606		$	929		$	949		$	2,304		$	1,882
Loans past due 90 days or more and accruing	—			—			—			—			—
Total nonperforming loans	606			929			949			2,304			1,882
Other real estate owned	401			834			834			1,013			880
Total nonperforming assets	$	1,007		$	1,763		$	1,783		$	3,317		$	2,762

Nonperforming loans to total loans	0.10		%	0.17		%	0.18		%	0.44		%	0.36		%
Nonperforming assets to total assets	0.13		%	0.23		%	0.24		%	0.46		%	0.38		%
Allowance for loan losses to gross loans	1.31		%	1.48		%	1.56		%	1.62		%	1.68		%

Stewardship Financial Corporation

Selected Consolidated Financial Information

(dollars in thousands, except per share amounts)

(unaudited)



	For the three months ended December 31,						For the year ended December 31,
	2016			2015			2016			2015

Selected Operating Data:
Interest income	$	7,000		$	6,643		$	27,085		$	25,609
Interest expense	1,103			1,198			4,513			3,826
Net interest income	5,897			5,445			22,572			21,783
Provision for loan losses	(300		)	(275		)	(1,350		)	(1,375		)
Net interest income after provision for loan losses	6,197			5,720			23,922			23,158
Noninterest income:
Fees and service charges	564			558			2,159			2,135
Bank owned life insurance	119			103			447			403
Gain on calls and sales of securities	1			17			63			169
Gain on sales of mortgage loans	94			24			164			141
Gain on sales of other real estate owned	30			30			36			83
Other	129			123			542			562
Total noninterest income	937			855			3,411			3,493
Noninterest expenses:
Salaries and employment benefits	2,735			2,719			10,980			10,900
Occupancy, net	396			422			1,598			1,739
Equipment	156			159			609			655
Data processing	481			467			1,915			1,847
FDIC insurance premium	21			106			317			423
Other	1,213			1,027			4,483			4,615
Total noninterest expenses	5,002			4,900			19,902			20,179
Income before income tax expense	2,132			1,675			7,431			6,472
Income tax expense	784			614			2,695			2,272
Net income	1,348			1,061			4,736			4,200
Dividends on preferred stock	—			—			—			456
Net income available to common shareholders	$	1,348		$	1,061		$	4,736		$	3,744

Weighted avg. no. of diluted common shares	6,119,693			6,086,249			6,109,983			6,077,657
Diluted earnings per common share	$	0.22		$	0.17		$	0.78		$	0.62

Return on average common equity	10.40		%	8.89		%	9.43		%	8.14		%

Return on average assets	0.69		%	0.58		%	0.63		%	0.60		%

Yield on average interest-earning assets	3.77		%	3.87		%	3.81		%	3.87		%
Cost of average interest-bearing liabilities	0.80		%	0.92		%	0.85		%	0.77		%
Net interest rate spread	2.97		%	2.95		%	2.96		%	3.10		%

Net interest margin	3.18		%	3.18		%	3.18		%	3.30		%

Stewardship Financial Corporation

Selected Consolidated Financial Information

(dollars in thousands, except per share amounts)

(unaudited)



	For the three months ended
	December 31,			September 30,			June 30,			March 31,			December 31,
	2016			2016			2016			2016			2015

Selected Operating Data:
Interest income	$	7,000		$	6,657		$	6,979		$	6,449		$	6,643
Interest expense	1,103			1,113			1,124			1,173			1,198
Net interest income	5,897			5,544			5,855			5,276			5,445
Provision for loan losses	(300		)	(250		)	(450		)	(350		)	(275		)
Net interest income after provision for loan losses	6,197			5,794			6,305			5,626			5,720
Noninterest income:
Fees and service charges	564			536			530			529			558
Bank owned life insurance	119			120			107			101			103
Gain on calls and sales of securities	1			6			32			24			17
Gain on sales of mortgage loans	94			33			19			18			24
Gain on sales of other real estate owned	30			—			6			—			30
Other	129			128			138			147			123
Total noninterest income	937			823			832			819			855
Noninterest expenses:
Salaries and employment benefits	2,735			2,788			2,742			2,715			2,719
Occupancy, net	396			400			404			398			422
Equipment	156			155			148			150			159
Data processing	481			485			477			472			467
FDIC insurance premium	21			100			90			106			106
Other	1,213			1,071			1,138			1,061			1,027
Total noninterest expenses	5,002			4,999			4,999			4,902			4,900
Income before income tax expense	2,132			1,618			2,138			1,543			1,675
Income tax expense	784			583			776			552			614
Net income	$	1,348		$	1,035		$	1,362		$	991		$	1,061

Weighted avg. no. of diluted common shares	6,119,693			6,115,987			6,111,729			6,092,351			6,086,249
Diluted earnings per common share	$	0.22		$	0.17		$	0.22		$	0.16		$	0.17

Return on average common equity	10.40		%	8.06		%	11.05		%	8.21		%	8.89		%

Return on average assets	0.69		%	0.54		%	0.74		%	0.55		%	0.58		%

Yield on average interest-earning assets	3.77		%	3.68		%	4.02		%	3.79		%	3.87		%
Cost of average interest-bearing liabilities	0.80		%	0.83		%	0.86		%	0.90		%	0.92		%
Net interest rate spread	2.97		%	2.85		%	3.16		%	2.89		%	2.95		%

Net interest margin	3.18		%	3.07		%	3.38		%	3.11		%	3.18		%

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