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
October 15, 2003
PHSB FINANCIAL CORPORATION
ANNOUNCES SEPTEMBER 30, 2003 OPERATING RESULTS
Beaver Falls, Pennsylvania (Nasdaq National Market - "PHSB") PHSB Financial
Corporation (the "Company"), announced today operating results for the nine
months ended September 30, 2003. Net income for the nine months ended September
30, 2003 was $1,905,000, or $.71 basic and $.68 diluted earnings per share,
compared to $2,131,000 or $.69 basic and $.68 diluted earnings per share, for
the nine months ended September 30, 2002.
Total assets at September 30, 2003 of $339.3 million represented a
decrease of $6.2 million or 1.8% from December 31, 2002. This decrease was
primarily due to a decrease in loans of $6.7 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)
September 30, December 31,
2003 2002
---------------- ------------------
ASSETS
Cash and amounts due from other institutions $ 5,793,221 $ 6,938,217
Interest-bearing deposits with other institutions 3,249,152 1,283,752
---------------- ------------------
Cash and cash equivalents 9,042,373 8,221,969
Investment securities:
Available for sale 35,203,528 27,233,227
Held to maturity (market value $ 8,866,546
and $19,611,078) 8,581,797 19,274,753
Mortgage - backed securities:
Available for sale 55,355,595 44,137,225
Held to maturity (market value $ 62,198,528
and $71,826,914) 61,650,964 70,346,358
Loans (net of allowance for loan losses of $1,714,417
and $1,683,596) 159,006,348 165,668,214
Accrued interest receivable 1,426,436 1,998,773
Premises and equipment 4,316,246 4,604,005
Federal Home Loan Bank stock 3,808,900 3,620,300
Other assets 891,885 431,881
---------------- ------------------
TOTAL ASSETS $ 339,284,072 $ 345,536,705
================ ==================
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits $ 231,731,211 $ 232,366,672
Advances from Federal Home Loan Bank 57,880,000 61,007,800
Accrued interest payable and other liabilities 2,421,701 2,802,061
---------------- ------------------
Total liabilities 292,032,912 296,176,533
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Preferred stock, 20,000,000 shares authorized, none issued - -
Common stock, $.10 par value 80,000,000 shares authorized,
3,519,711 and 3,497,109 shares issued 351,971 349,711
Additional paid in capital 32,614,979 32,329,518
Retained earnings - substantially restricted 24,590,063 23,571,132
Accumulated other comprehensive income 1,611,040 2,197,377
Unallocated ESOP shares (196,712 and 214,595 shares) (2,086,418) (2,276,111)
Unallocated RSP shares (37,510 shares) (581,780) -
Treasury stock, at cost (613,360 and 471,357 shares) (9,248,695) (6,811,455)
---------------- ------------------
Total stockholders' equity 47,251,160 49,360,172
---------------- ------------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 339,284,072 $ 345,536,705
================ ==================
September 30, December 31,
2003 2002
---------------- ------------------
Other Financial Condition Data:
Stockholders equity to total assets 13.93% 14.29%
Book value per share 16.26 16.31
Non-performing assets $ 676,690 $ 443,452
Non-performing loans to total loans 0.43% 0.27%
PHSB FINANCIAL CORPORATION
CONSOLIDATED STATEMENT OF INCOME (UNAUDITED)
Three Months Ended Nine Months Ended
September 30, December 31,
2003 2002 2003 2002
------------ ------------ ----------- -----------
INTEREST AND DIVIDEND INCOME
Loans:
Taxable $ 2,375,477 $ 2,662,025 $ 7,482,391 $ 7,875,638
Exempt from federal income tax 190,023 295,607 815,097 498,741
Investment securities:
Taxable 213,809 422,770 656,616 1,235,175
Exempt from federal income tax 128,671 208,221 466,907 795,409
Mortgage - backed securities 1,158,878 1,436,947 3,880,207 4,403,806
Interest - bearing deposits with other institutions 9,853 41,681 36,090 141,420
------------ ------------ ----------- -----------
Total interest and dividend income 4,076,711 5,067,251 13,337,308 14,950,189
------------ ------------ ----------- -----------
INTEREST EXPENSE
Deposits 1,328,128 1,762,409 4,484,958 4,993,419
Advances from Federal Home Loan Bank 743,667 792,655 2,197,886 2,316,652
------------ ------------ ----------- -----------
Total interest expense 2,071,795 2,555,064 6,682,844 7,310,071
------------ ------------ ----------- -----------
Net interest income 2,004,916 2,512,187 6,654,464 7,640,118
PROVISION FOR LOAN LOSSES 130,000 195,000 500,000 555,000
------------ ------------ ----------- -----------
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES 1,874,916 2,317,187 6,154,464 7,085,118
------------ ------------ ----------- -----------
NONINTEREST INCOME
Service charges on deposit accounts 185,601 167,690 529,904 464,893
Investment securities gains, net 467,814 98,178 1,010,778 148,138
Rental income, net 26,400 25,500 77,400 66,983
Other income 73,094 63,459 209,681 194,396
------------ ------------ ----------- -----------
Total noninterest income 752,909 354,827 1,827,763 874,410
------------ ------------ ----------- -----------
NONINTEREST EXPENSE
Compensation and employee benefits 1,074,589 982,541 3,155,376 2,822,891
Occupancy and equipment costs 301,915 338,762 970,098 1,045,349
Data processing costs 46,050 51,116 144,717 149,134
Other expenses 394,485 378,602 1,230,967 1,157,067
------------ ------------ ----------- -----------
Total noninterest expense 1,817,039 1,751,021 5,501,158 5,174,441
------------ ------------ ----------- -----------
Income before income taxes 810,786 920,993 2,481,069 2,785,087
Income taxes 223,389 176,765 575,943 653,765
------------ ------------ ----------- -----------
NET INCOME $ 587,397 $ 744,228 $ 1,905,126 $ 2,131,322
============ ============ =========== ===========
Earnings Per Share
Basic $ 0.22 $ 0.26 $ 0.71 $ 0.69
Diluted $ 0.21 $ 0.25 $ 0.68 $ 0.68
Weighted average number of shares outstanding
Basic 2,676,199 2,912,386 2,697,793 3,098,123
Diluted 2,768,214 2,965,714 2,783,525 3,147,222
Financial ratios (annualized)
Return on average assets 0.71% 0.87% 0.75% 0.86%
Return on average equity 5.05% 5.96% 5.36% 5.50%
Net interest margin 2.46% 3.00% 2.68% 3.15%