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 9, 2004
PHSB FINANCIAL CORPORATION
ANNOUNCES CASH DIVIDEND AND MARCH 31, 2004 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 regular quarterly cash dividend of $ .20 per share.
The cash dividend will be paid to stockholders of record as of April 22, 2004,
on or about May 6, 2004.
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.
The Company also announced today operating results for the three months
ended March 31, 2004. Net income for the three months ended March 31, 2004 was
$852,000, or $.32 basic and $.30 diluted earnings per share, compared to
$652,000 or $.24 basic and $.23 diluted earnings per share, for the three months
ended March 31, 2003. Net interest income decreased by $249,000 or 10.2%. This
decrease was more than offset by an increase in gains on sales of securities
from $176,000 for the three months ended March 31, 2003 to $804,000 for the
quarter ended March 31, 2004
Total assets at March 31, 2004 of $341.7 million represented an
increase of $1.7 million or 0.5% from December 31, 2003. This increase was
primarily due to increases in cash and interest-bearing deposits and other
assets of $4.0 million and $1.5 million, respectively. These increases were
partially offset by a decrease in loans, net of $3.9 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,
2004 2003
------------------ ------------------
ASSETS
Cash and amounts due from other institutions $ 5,310,474 $ 6,795,068
Interest-bearing deposits with other institutions 6,186,671 753,727
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Cash and cash equivalents 11,497,145 7,548,795
Investment securities:
Available for sale 31,559,171 28,718,832
Held to maturity (market value $ 7,810,451
and $8,203,053) 7,582,772 7,952,211
Mortgage - backed securities:
Available for sale 78,082,148 75,910,915
Held to maturity (market value $ 51,863,331
and $56,194,217) 51,297,334 55,843,363
Loans (net of allowance for loan losses of $1,607,804
and $1,647,886) 149,727,759 153,584,123
Accrued interest receivable 1,767,360 1,573,295
Premises and equipment 4,167,653 4,227,498
Federal Home Loan Bank stock 3,525,400 3,606,600
Other assets 2,475,635 1,003,979
------------------ ------------------
TOTAL ASSETS $ 341,682,377 $ 339,969,611
================== ==================
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits $ 235,709,001 $ 231,519,432
Advances from Federal Home Loan Bank 55,130,000 58,880,000
Accrued interest payable and other liabilities 3,553,880 2,920,291
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Total liabilities 294,392,881 293,319,723
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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 shares issued 351,971 351,971
Additional paid in capital 32,818,599 32,750,510
Retained earnings - substantially restricted 24,128,335 23,857,117
Accumulated other comprehensive income 1,714,794 1,540,849
Unallocated ESOP shares (184,790 and 190,751 shares) (1,959,956) (2,023,187)
Unallocated RSP shares (29,370 and 33,440 shares) (455,529) (518,654)
Treasury stock, at cost ( 616,358 shares) (9,308,718) (9,308,718)
------------------ ------------------
Total stockholders' equity 47,289,496 46,649,888
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TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 341,682,377 $ 339,969,611
================== ==================
March 31, December 31,
2004 2003
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Other Financial Condition Data:
Stockholders equity to total assets 13.84% 13.72%
Book value per share $ 16.29 $ 16.07
Non-performing assets $ 275,612 $ 443,452
Non-performing loans to total loans 0.18% 0.29%
PHSB FINANCIAL CORPORATION
CONSOLIDATED STATEMENT OF INCOME (UNAUDITED)
Three Months Ended March 31,
2004 2003
--------------- ----------------
INTEREST AND DIVIDEND INCOME
Loans:
Taxable $ 2,183,818 $ 2,600,235
Exempt from federal income tax 227,230 310,414
Investment securities:
Taxable 210,004 238,908
Exempt from federal income tax 73,480 188,596
Mortgage - backed securities 1,468,529 1,440,659
Interest - bearing deposits with other institutions 9,495 10,169
--------------- ----------------
Total interest and dividend income 4,172,556 4,788,981
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INTEREST EXPENSE
Deposits 1,242,037 1,601,447
Advances from Federal Home Loan Bank 729,288 736,841
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Total interest expense 1,971,325 2,338,288
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Net interest income 2,201,231 2,450,693
PROVISION FOR LOAN LOSSES 120,000 190,000
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NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES 2,081,231 2,260,693
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NONINTEREST INCOME
Service charges on deposit accounts 184,337 160,220
Investment securities gains, net 804,162 176,144
Rental income, net 26,020 25,500
Other income 38,462 68,381
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Total noninterest income 1,052,981 430,245
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NONINTEREST EXPENSE
Compensation and employee benefits 1,120,771 1,064,011
Occupancy and equipment costs 344,725 358,918
Data processing costs 42,645 48,010
Other expenses 408,183 402,175
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Total noninterest expense 1,916,324 1,873,114
--------------- ----------------
Income before income taxes 1,217,888 817,824
Income taxes 366,000 166,000
--------------- ----------------
NET INCOME $ 851,888 $ 651,824
=============== ================
Earnings Per Share
Basic $ 0.32 $ 0.24
Diluted $ 0.30 $ 0.23
Weighted average number of shares outstanding
Basic 2,682,616 2,746,632
Diluted 2,805,551 2,823,985
Financial ratios (annualized)
Return on average assets 1.00% 0.76%
Return on average equity 7.27% 5.39%
Net interest margin 2.65% 2.92%