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
July 11, 2003
PHSB FINANCIAL CORPORATION
ANNOUNCES CASH DIVIDEND AND JUNE 30, 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 July 24, 2003, on or about
August 7, 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 122,703 treasury shares
during the six month period ended June 30, 2003, at an average cost of $16.98
per share.
The Company also announced today operating results for the six months ended
June 30, 2003. Net income for the six months ended June 30, 2003 was $1,318,000,
or $.49 basic and $.47 diluted earnings per share, compared to $1,387,000 or
$.43 basic and diluted earnings per share, for the six months ended June 30,
2002.
Total assets at June 30, 2003 of $320.8 million represented a decrease of
$24.7 million or 7.1% from December 31, 2002. This decrease was primarily due to
decreases in loans and securities of $17.9 million and $12.2 million, partially
offset by an increase in cash and interest-bearing deposits of $6.2 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)
June 30, December 31,
2003 2002
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ASSETS
Cash and amounts due from other institutions $ 9,492,805 $ 6,938,217
Interest-bearing deposits with other institutions 4,886,056 1,283,752
-------------- -------------
Cash and cash equivalents 14,378,861 8,221,969
Investment securities:
Available for sale 36,115,478 27,233,227
Held to maturity (market value $ 9,256,437
and $19,611,078) 8,911,722 19,274,753
Mortgage - backed securities:
Available for sale 27,711,463 44,137,225
Held to maturity (market value $ 77,342,473
and $71,826,914) 76,092,985 70,346,358
Loans (net of allowance for loan losses of $1,712,428
and $1,683,596) 147,840,533 165,668,214
Accrued interest receivable 1,293,867 1,998,773
Premises and equipment 4,413,124 4,604,005
Federal Home Loan Bank stock 3,380,600 3,620,300
Other assets 658,245 431,881
-------------- -------------
TOTAL ASSETS $ 320,796,878 $ 345,536,705
============== =============
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits $ 218,167,426 $ 232,366,672
Advances from Federal Home Loan Bank 52,880,000 61,007,800
Accrued interest payable and other liabilities 2,404,964 2,802,061
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Total liabilities 273,452,390 296,176,533
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Preferred stock, 20,000,000 shares authorized, none issued - -
Common stock, $.10 par value 80,000,000 shares authorized,
3,515,388 and 3,497,109 shares issued 351,539 349,711
Additional paid in capital 32,513,681 32,329,518
Retained earnings - substantially restricted 24,294,631 23,571,132
Accumulated other comprehensive income 1,873,605 2,197,377
Unallocated ESOP shares (202,673 and 214,595 shares) -2,149,649 -2,276,111
Unallocated RSP shares (41,580 shares) -644,906 -
Treasury stock, at cost 594,060 and 471,357 shares) -8,894,413 -6,811,455
-------------- -------------
Total stockholders' equity 47,344,488 49,360,172
-------------- -------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 320,796,878 $ 345,536,705
============== =============
June 30, December 31,
2003 2002
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Other Financial Condition Data:
Stockholders equity to total assets 14.76% 14.29%
Book value per share 16.21 16.31
Non-performing assets $ 609,900 $ 443,452
Non-performing loans to total loans 0.41% 0.27%
PHSB FINANCIAL CORPORATION
CONSOLIDATED STATEMENT OF INCOME (UNAUDITED)
Three Months Ended June 30, Six Months Ended June 30,
2003 2002 2003 2002
------------ ----------- ------------- -----------
INTEREST AND DIVIDEND INCOME
Loans:
Taxable $ 2,506,679 $ 2,590,386 $ 5,106,914 $ 5,213,613
Exempt from federal income tax 314,660 103,223 625,074 203,134
Investment securities:
Taxable 203,899 437,576 442,807 812,405
Exempt from federal income tax 149,640 301,257 338,236 587,188
Mortgage - backed securities 1,280,670 1,516,097 2,721,329 2,966,859
Interest - bearing deposits with other institutions 16,068 31,715 26,237 99,739
---------- ---------- ----------- -----------
Total interest and dividend income 4,471,616 4,980,254 9,260,597 9,882,938
---------- ---------- ----------- -----------
INTEREST EXPENSE
Deposits 1,555,383 1,590,163 3,156,830 3,231,010
Advances from Federal Home Loan Bank 717,378 794,439 1,454,219 1,523,997
---------- ---------- ----------- -----------
Total interest expense 2,272,761 2,384,602 4,611,049 4,755,007
---------- ---------- ----------- -----------
Net interest income 2,198,855 2,595,652 4,649,548 5,127,931
PROVISION FOR LOAN LOSSES 180,000 180,000 370,000 360,000
---------- ---------- ----------- -----------
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES 2,018,855 2,415,652 4,279,548 4,767,931
---------- ---------- ----------- -----------
NONINTEREST INCOME
Service charges on deposit accounts 184,083 152,954 344,303 297,203
Investment securities gains, net 366,820 44,561 542,964 49,960
Rental income, net 25,500 18,156 51,000 41,483
Other income 68,206 71,403 136,587 130,937
---------- ---------- ----------- -----------
Total noninterest income 644,609 287,074 1,074,854 519,583
---------- ---------- ----------- -----------
NONINTEREST EXPENSE
Compensation and employee benefits 1,016,776 931,234 2,080,787 1,840,350
Occupancy and equipment costs 309,265 354,997 668,183 706,587
Data processing costs 50,657 48,860 98,667 98,018
Other expenses 434,307 399,609 836,482 778,465
---------- ---------- ----------- -----------
Total noninterest expense 1,811,005 1,734,700 3,684,119 3,423,420
---------- ---------- ----------- -----------
Income before income taxes 852,459 968,026 1,670,283 1,864,094
Income taxes 186,554 243,000 352,554 477,000
---------- ---------- ----------- -----------
NET INCOME $ 665,905 $ 725,026 $ 1,317,729 $ 1,387,094
========== ========== =========== ===========
Earnings Per Share
Basic $ $0.25 $ $0.23 $ $0.49 $ $0.43
Diluted $ $0.24 $ $0.23 $ $0.47 $ $0.43
Weighted average number of shares outstanding
Basic 2,671,320 3,130,855 2,708,768 3,192,531
Diluted 2,757,061 3,180,441 2,784,040 3,239,314
Financial ratios (annualized)
Return on average assets 0.78% 0.88% 0.77% 0.85%
Return on average equity 5.64% 5.60% 5.52% 5.28%
Net interest margin 2.65% 3.22% 2.79% 3.22%