PHSB Financial Corporation Contact: James P. Wetzel, Jr.
Beaver Falls, Pennsylvania President and Chief Executive Officer
Richard E. Canonge
Chief Financial Officer
(724) 846-7300
FOR IMMEDIATE RELEASE
April 11, 2003
PHSB FINANCIAL CORPORATION
ANNOUNCES CASH DIVIDEND AND MARCH 31, 2003 OPERATING RESULTS
Beaver Falls, Pennsylvania (Nasdaq National Market - "PHSB") PHSB
Financial Corporation (the "Company"), announced today that the Company's Board
of Directors has declared a quarterly cash dividend of $ .10 per share. The cash
dividend will be paid to stockholders of record as of April 24, 2003, on or
about May 5, 2003.
President Wetzel stated that the cash dividend is a result of the
continued profitability of the Company and the Bank and our commitment to
enhance stockholder value. In addition, the Company repurchased 109,203 treasury
shares during the quarter, at an average cost of $16.89 per share.
The Company also announced today operating results for the three months
ended March 31, 2003. Net income for the three months ended March 31, 2003 was
$652,000, or $.24 basic and $.23 diluted earnings per share, compared to
$662,000 or $.20 basic and diluted earnings per share, for the three months
ended March 31, 2002.
Total assets at March 31, 2003 of $343.5 million represented a decrease
of $2.0 million or 0.6% from December 31, 2002. This decrease was primarily due
to a decrease in investment and mortgage-backed securities of $6.0 million,
partially offset by increases in cash and interest-bearing deposits of $2.0
million and loans, net of $1.3 million.
The Company's wholly owned subsidiary, Peoples Home Savings Bank,
operates through its administrative office and ten full service offices in
Beaver and Lawrence Counties, Pennsylvania.
Statements contained in this news release, which are not historical
facts, are forward-looking statements as that term is defined in the Private
Securities Litigation Reform Act of 1995. Such forward-looking statements are
subject to risks and uncertainties which could cause actual results to differ
materially from those currently anticipated due to a number of factors, which
include, but are not limited to, factors discussed in documents filed by the
Company with the Securities and Exchange Commission from time to time.
PHSB FINANCIAL CORPORATION
CONSOLIDATED BALANCE SHEET (UNAUDITED)
March 31, December 31,
2003 2002
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ASSETS
Cash and amounts due from other institutions $ 8,195,465 $ 6,938,217
Interest - bearing deposits with other institutions 2,116,696 1,283,752
Investment securities:
Available for sale 19,218,944 27,233,227
Held to maturity (market value $ 14,020,460
and $19,611,078) 13,689,778 19,274,753
Mortgage - backed securities:
Available for sale 36,182,303 44,137,225
Held to maturity (market value $ 87,345,531
and $71,826,914) 85,923,044 70,346,358
Loans (net of allowance for loan losses of $1,703,691
and $1,683,596) 167,013,612 165,668,214
Accrued interest receivable 2,237,790 1,998,773
Premises and equipment 4,502,177 4,604,005
Federal Home Loan Bank stock 3,874,300 3,620,300
Other assets 565,276 431,881
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TOTAL ASSETS $343,519,385 $345,536,705
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LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits $237,410,353 $232,366,672
Advances from Federal Home Loan Bank 56,257,800 61,007,800
Accrued interest payable and other liabilities 2,977,312 2,802,061
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Total liabilities 296,645,465 296,176,533
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Preferred stock, 20,000,000 shares authorized, none issued - -
Common stock, $.10 par value 80,000,000 shares authorized,
3,497,109 shares issued 349,711 349,711
Additional paid in capital 32,289,744 32,329,518
Retained earnings - substantially restricted 23,920,381 23,571,132
Accumulated other comprehensive income 1,890,419 2,197,377
Unallocated ESOP shares (208,634 and 214,595 shares) (2,212,880) (2,276,111)
Unallocated RSP shares (45,650 shares) (708,032) -
Treasury stock, at cost (580,560 and 471,357 shares) (8,655,423) (6,811,455)
------------ ------------
Total stockholders' equity 46,873,920 49,360,172
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TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $343,519,385 $345,536,705
============ ============
March 31, December 31,
2003 2002
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Other Financial Condition Data:
Stockholders equity to total assets 13.65% 14.29%
Book value per share $ 16.07 $ 16.31
Non-performing assets $ 611,819 $ 443,452
Non-performing loans to total loans 0.37% 0.27%
PHSB FINANCIAL CORPORATION
CONSOLIDATED STATEMENT OF INCOME (UNAUDITED)
Three Months Ended March 31,
2003 2002
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INTEREST AND DIVIDEND INCOME
Loans:
Taxable $2,600,235 $2,623,227
Exempt from federal income tax 310,414 99,911
Investment securities:
Taxable 238,908 374,829
Exempt from federal income tax 188,596 285,931
Mortgage - backed securities 1,440,659 1,450,762
Interest - bearing deposits with other institutions 10,169 68,024
---------- ----------
Total interest income 4,788,981 4,902,684
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INTEREST EXPENSE
Deposits 1,601,447 1,640,847
Advances from Federal Home Loan Bank 736,841 729,558
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Total interest expense 2,338,288 2,370,405
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Net interest income 2,450,693 2,532,279
PROVISION FOR LOAN LOSSES 190,000 180,000
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NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES 2,260,693 2,352,279
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NONINTEREST INCOME
Service charges on deposit accounts 160,220 144,249
Investment securities gains, net 176,144 5,399
Rental income, net 25,500 23,327
Other income 68,381 59,534
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Total noninterest income 430,245 232,509
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NONINTEREST EXPENSE
Compensation and employee benefits 1,064,011 909,116
Occupancy and equipment costs 358,918 351,590
Data processing costs 48,010 49,158
Other expenses 402,175 378,856
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Total noninterest expense 1,873,114 1,688,720
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Income before income taxes 817,824 896,068
Income taxes 166,000 234,000
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NET INCOME $ 651,824 $ 662,068
========== ==========
Earnings Per Share
Basic $ 0.24 $ 0.20
Diluted $ 0.23 $ 0.20
Weighted average number of shares outstanding
Basic 2,746,632 3,254,892
Diluted 2,823,985 3,298,347
Financial ratios (annualized)
Return on average assets 0.76% 0.82%
Return on average equity 5.39% 4.97%
Net interest margin 2.92% 3.23%