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
January 21, 2004
PHSB FINANCIAL CORPORATION
ANNOUNCES DECEMBER 31, 2003 OPERATING RESULTS
Beaver Falls, Pennsylvania (Nasdaq National Market - "PHSB") PHSB Financial
Corporation (the "Company"), announced today operating results for the year
ended December 31, 2003. Net income for the year ended December 31, 2003 was
$2,723,000, or $1.01 basic and $.98 diluted earnings per share, compared to
$2,625,000 or $.87 basic and $.85 diluted earnings per share for the year ended
December 31, 2002.
Total assets at December 31, 2003 of $340.0 million represented a
decrease of $5.5 million or 1.6% from December 31, 2002. This decrease was
primarily due to a decrease in loans of $12.1 million, partially offset by a
$7.4 million increase in investment and mortgage-backed securities.
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)
December 31, December 31,
2003 2002
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ASSETS
Cash and amounts due from other institutions $ 6,795,068 $ 6,938,217
Interest-bearing deposits with other institutions 753,727 1,283,752
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Cash and cash equivalents 7,548,795 8,221,969
Investment securities:
Available for sale 28,718,832 27,233,227
Held to maturity (market value $ 8,203,053
and $19,611,078) 7,952,211 19,274,753
Mortgage - backed securities:
Available for sale 75,910,915 44,137,225
Held to maturity (market value $ 56,194,217
and $71,826,914) 55,843,363 70,346,358
Loans (net of allowance for loan losses of $1,647,886
and $1,683,596) 153,584,123 165,668,214
Accrued interest receivable 1,573,295 1,998,773
Premises and equipment 4,227,498 4,604,005
Federal Home Loan Bank stock 3,606,600 3,620,300
Other assets 1,003,979 431,881
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TOTAL ASSETS $ 339,969,611 $ 345,536,705
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LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits $ 231,519,432 $ 232,366,672
Advances from Federal Home Loan Bank 58,880,000 61,007,800
Accrued interest payable and other liabilities 2,920,291 2,802,061
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Total liabilities 293,319,723 296,176,533
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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 32,750,510 32,329,518
Retained earnings - substantially restricted 23,857,117 23,571,132
Accumulated other comprehensive income 1,540,849 2,197,377
Unallocated ESOP shares (190,751 and 214,595 shares) (2,023,187) (2,276,111)
Unallocated RSP shares (33,440 shares) (518,654) -
Treasury stock, at cost (616,358 and 471,357 shares) (9,308,718) (6,811,455)
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Total stockholders' equity 46,649,888 49,360,172
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TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 339,969,611 $ 345,536,705
============= =============
December 31, December 31,
2003 2002
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Other Financial Condition Data:
Stockholders equity to total assets 13.72% 14.29%
Book value per share 16.07 16.31
Non-performing assets $ 409,351 $ 443,452
Non-performing loans to total loans 0.27% 0.27%
PHSB FINANCIAL CORPORATION
CONSOLIDATED STATEMENT OF INCOME (UNAUDITED)
Three Months Ended December 31, Year Ended December 31,
2003 2002 2003 2002
----------- ----------- ----------- -----------
INTEREST AND DIVIDEND INCOME
Loans:
Taxable $ 2,306,541 $ 2,645,061 $ 9,788,932 $10,520,699
Exempt from federal income tax 231,791 317,877 1,046,888 816,618
Investment securities:
Taxable 204,414 345,532 861,030 1,580,707
Exempt from federal income tax 94,944 177,158 561,851 972,567
Mortgage - backed securities 1,398,260 1,399,048 5,278,467 5,802,854
Interest - bearing deposits with other institutions 11,802 20,847 47,892 162,267
----------- ----------- ----------- -----------
Total interest and dividend income 4,247,752 4,905,523 17,585,060 19,855,712
----------- ----------- ----------- -----------
INTEREST EXPENSE
Deposits 1,308,894 1,707,234 5,793,852 6,700,653
Advances from Federal Home Loan Bank 751,400 782,076 2,949,286 3,098,728
----------- ----------- ----------- -----------
Total interest expense 2,060,294 2,489,310 8,743,138 9,799,381
----------- ----------- ----------- -----------
Net interest income 2,187,458 2,416,213 8,841,922 10,056,331
PROVISION FOR LOAN LOSSES 120,000 180,000 620,000 735,000
----------- ----------- ----------- -----------
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES 2,067,458 2,236,213 8,221,922 9,321,331
----------- ----------- ----------- -----------
NONINTEREST INCOME
Service charges on deposit accounts 188,053 174,390 717,957 639,283
Investment securities gains, net 594,611 19,889 1,605,389 168,027
Rental income, net 25,650 25,500 103,050 92,483
Other income 71,297 75,965 280,978 270,361
----------- ----------- ----------- -----------
Total noninterest income 879,611 295,744 2,707,374 1,170,154
----------- ----------- ----------- -----------
NONINTEREST EXPENSE
Compensation and employee benefits 1,107,991 1,144,881 4,263,367 3,967,772
Occupancy and equipment costs 277,264 334,727 1,247,362 1,380,076
Data processing costs 50,711 49,432 195,428 198,566
Other expenses 386,106 473,098 1,617,073 1,630,165
----------- ----------- ----------- -----------
Total noninterest expense 1,822,072 2,002,138 7,323,230 7,176,579
----------- ----------- ----------- -----------
Income before income taxes 1,124,997 529,819 3,606,066 3,314,906
Income taxes 307,268 35,966 883,211 689,731
----------- ----------- ----------- -----------
NET INCOME $ 817,729 $ 493,853 $ 2,722,855 $ 2,625,175
=========== =========== =========== ===========
Earnings Per Share
Basic $ 0.31 $ 0.18 $ 1.01 $ 0.87
Diluted $ 0.29 $ 0.17 $ 0.98 $ 0.85
Weighted average number of shares outstanding
Basic 2,674,790 2,811,725 2,691,995 3,025,935
Diluted 2,778,993 2,868,744 2,783,124 3,077,242
Financial ratios (annualized)
Return on average assets 0.96% 0.57% 0.80% 0.78%
Return on average equity 7.04% 4.03% 5.78% 5.15%
Net interest margin 2.77% 3.00% 2.70% 3.11%