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, 2004
PHSB FINANCIAL CORPORATION
ANNOUNCES SEPTEMBER 30, 2004 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, 2004. Net income for the nine months ended September
30, 2004 was $2,206,000, or $.82 basic and $.78 diluted earnings per share,
compared to $1,905,000 or $.71 basic and $.68 diluted earnings per share, for
the nine months ended September 30, 2003. Net interest income decreased by
$230,000 or 3.5%. This decrease was more than offset by an increase in gains on
sales of securities from $1,011,000 for the nine months ended September 30, 2003
to $1,772,000 for the nine months ended September 30, 2004.
Total assets at September 30, 2004 of $337.5 million represented a decrease
of $2.5 million or 0.7% from December 31, 2003. This decrease was primarily due
to a decrease in loans of $3.6 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,
2004 2003
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ASSETS
Cash and amounts due from other institutions $ 5,819,492 $ 6,795,068
Interest-bearing deposits with other institutions 4,549,973 753,727
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Cash and cash equivalents 10,369,465 7,548,795
Investment securities:
Available for sale 17,628,110 28,718,832
Held to maturity (market value $ 6,617,442
and $8,203,053) 6,472,876 7,952,211
Mortgage - backed securities:
Available for sale 102,846,374 75,910,915
Held to maturity (market value $ 38,132,384
and $56,194,217) 38,148,602 55,843,363
Loans (net of allowance for loan losses of $1,538,521
and $1,647,886) 150,025,782 153,584,123
Accrued interest receivable 1,388,172 1,573,295
Premises and equipment 3,986,207 4,227,498
Federal Home Loan Bank stock 3,723,700 3,606,600
Other assets 2,882,775 1,003,979
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TOTAL ASSETS $ 337,472,063 $ 339,969,611
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LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits $ 234,806,593 $ 231,519,432
Advances from Federal Home Loan Bank 54,130,000 58,880,000
Accrued interest payable and other liabilities 2,207,539 2,920,291
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Total liabilities 291,144,132 293,319,723
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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 32,956,031 32,750,510
Retained earnings - substantially restricted 24,321,467 23,857,117
Accumulated other comprehensive income 169,951 1,540,849
Unallocated ESOP shares (172,868 and 190,751 shares) (1,833,494) (2,023,187)
Unallocated RSP shares (21,230 and 33,440 shares) (329,277) (518,654)
Treasury stock, at cost ( 616,358 shares) (9,308,718) (9,308,718)
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Total stockholders' equity 46,327,931 46,649,888
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TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 337,472,063 $ 339,969,611
============= =============
September 30, December 31,
2004 2003
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Other Financial Condition Data:
Stockholders' equity to total assets 13.73% 13.72%
Book value per share $ 15.96 $ 16.07
Non-performing assets $ 418,698 $ 401,874
Non-performing loans to total loans 0.28% 0.26%
PHSB FINANCIAL CORPORATION
CONSOLIDATED STATEMENT OF INCOME (UNAUDITED)
Three Months Ended September 30, Nine Months Ended September 30,
2004 2003 2004 2003
----------- ------------ ----------- -----------
INTEREST AND DIVIDEND INCOME
Loans:
Taxable $ 2,059,466 $ 2,375,477 $ 6,315,311 $ 7,482,391
Exempt from federal income tax 225,302 190,023 678,533 815,097
Investment securities:
Taxable 238,043 213,809 670,457 656,616
Exempt from federal income tax 35,400 128,671 164,711 466,907
Mortgage - backed securities 1,428,696 1,158,878 4,341,539 3,880,207
Interest - bearing deposits with other institutions 24,634 9,853 42,318 36,090
----------- ------------ ----------- -----------
Total interest and dividend income 4,011,541 4,076,711 12,212,869 13,337,308
----------- ------------ ----------- -----------
INTEREST EXPENSE
Deposits 1,192,765 1,328,128 3,637,912 4,484,958
Advances from Federal Home Loan Bank 708,279 743,667 2,150,572 2,197,886
----------- ------------ ----------- -----------
Total interest expense 1,901,044 2,071,795 5,788,484 6,682,844
----------- ------------ ----------- -----------
Net interest income 2,110,497 2,004,916 6,424,385 6,654,464
PROVISION FOR LOAN LOSSES 90,000 130,000 300,000 500,000
----------- ------------ ----------- -----------
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES 2,020,497 1,874,916 6,124,385 6,154,464
----------- ------------ ----------- -----------
NONINTEREST INCOME
Service charges on deposit accounts 184,544 185,601 564,022 529,904
Investment securities gains, net 492,686 467,814 1,771,647 1,010,778
Rental income, net 10,570 26,400 57,390 77,400
Other income 65,559 73,094 154,885 209,681
----------- ------------ ----------- -----------
Total noninterest income 753,359 752,909 2,547,944 1,827,763
----------- ------------ ----------- -----------
NONINTEREST EXPENSE
Compensation and employee benefits 1,072,051 1,074,589 3,255,083 3,155,376
Occupancy and equipment costs 297,879 301,915 953,057 970,098
Data processing costs 52,090 46,050 138,451 144,717
Other expenses 488,459 394,485 1,295,831 1,230,967
----------- ------------ ----------- -----------
Total noninterest expense 1,910,479 1,817,039 5,642,422 5,501,158
----------- ------------ ----------- -----------
Income before income taxes 863,377 810,786 3,029,907 2,481,069
Income taxes 212,545 223,389 823,545 575,943
----------- ------------ ----------- -----------
NET INCOME $ 650,832 $ 587,397 $ 2,206,362 $ 1,905,126
=========== ============ =========== ===========
Earnings Per Share
Basic $ 0.24 $ 0.22 $ 0.82 $ 0.71
Diluted $ 0.23 $ 0.21 $ 0.78 $ 0.68
Weighted average number of shares outstanding
Basic 2,702,640 2,676,199 2,692,671 2,697,793
Diluted 2,835,327 2,768,214 2,815,179 2,783,525
Financial ratios (annualized)
Return on average assets 0.77% 0.71% 0.87% 0.75%
Return on average equity 5.67% 5.05% 6.36% 5.36%
Net interest margin 2.56% 2.46% 2.58% 2.68%