Exhibit 99.1
PFS Bancorp, Inc.
Second and Bridgeway Streets
Aurora, Indiana 47001
April 30, 2003
FOR IMMEDIATE RELEASE:
CONTACT:
Stuart M. Suggs, Chief Financial Officer
PFS Bancorp, Inc.
(812) 926-0631
PFS Bancorp, Inc. Reports Net Earnings For First Quarter Ended March 31, 2003.
Aurora, Indiana - PFS Bancorp, Inc. (Nasdaq: PBNC), parent company of Peoples
Federal Savings Bank, reported net earnings for the first quarter ended March
31, 2003 of $221,000, or diluted earnings per share of $.15, a decrease of
$38,000, or 14.7%, as compared to the $259,000, or diluted earnings of $.18,
in net earnings recorded for the first quarter ended March 31, 2002. Book
value, or stockholders' equity, was $17.89 per share at March 31, 2003.
The decrease in net earnings for the first quarter was due primarily to a
$17,000, or 21.3%, decrease in other income and a $47,000, or 7.7% increase
in general, administrative and other expenses which were partially offset by
a $27,000, or 15.6% decrease in the provision for income taxes.
The decrease in other income for the quarter ended March 31, 2003 was
primarily attributable to a $28,000 loss on the sale of investment securities
which was partially offset by a $4,000 gain on the sale of real estate
acquired through foreclosure while service charge and fee income increased
$7,000, or 8.8% quarter to quarter.
The increase in general, administrative and other expense for the quarter was
due primarily to a $53,000, or 15.9%, increase in employee compensation and
benefits and an $18,000, or 27.7% increase in occupancy and equipment expense
which were partially offset by a $20,000, or 28.6% decrease in data processing
expenses. The increase in employee compensation and benefits was due
primarily to the expense recognized in connection with the Company's stock
benefit plans, a 19.1% increase in medical insurance premiums, as well as
normal merit increases quarter to quarter.
At March 31, 2003, PFS Bancorp, Inc. reported total assets of $120.7 million,
total liabilities of $94.3 million, including deposits of $93.1 million, and
shareholders' equity of $26.4 million, or 21.9% of total assets.
PFS Bancorp, Inc., headquartered in Aurora, Indiana, is the holding company
for Peoples Federal Savings Bank. The Bank is a 116 year old federally
chartered savings bank with three full service offices in Dearborn, Ohio, and
Switzerland counties in Southeastern Indiana.
PFS Bancorp, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(In thousands)
March 31, December 31,
ASSETS 2003 2002
Cash and cash equivalents $11,925 $5,225
Investment securities 11,260 15,303
Loans receivable 94,710 95,702
Other assets 2,785 2,806
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Total assets $120,680 $119,036
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LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits $93,109 $89,420
Advances from the FHLB - 1,000
Other liabilities 1,214 1,019
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Total liabilities 94,323 91,439
Shareholders' equity 26,357 27,597
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Total liabilities and shareholders' equity $120,680 $119,036
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PFS Bancorp, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(In thousands, except share data)
Three months ended
March 31,
2003 2002
Total interest income $1,549 $1,778
Total interest expense 564 792
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Net interest income 985 986
Provision for losses on loans 24 24
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Net interest income after provision for
losses on loans 961 962
Other income 63 80
General, administrative and other expense 657 610
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Earnings before income taxes 367 432
Income taxes 146 173
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NET EARNINGS $ 221 $ 259
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EARNINGS PER SHARE
Basic $ .15 $.18
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Diluted $.15 $.18
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