EXHIBIT 99.1
PFS Bancorp, Inc.
Second and Bridgeway Streets
Aurora, Indiana 47001
July 29, 2003
FOR IMMEDIATE RELEASE:
CONTACT:
Stuart M. Suggs, Chief Financial Officer
PFS Bancorp, Inc.
(812) 926-0631
PFS Bancorp, Inc. Reports Net Earnings For Second Quarter Ended June 30, 2003.
Aurora, Indiana - PFS Bancorp, Inc. (Nasdaq: PBNC), parent
company of Peoples Federal Savings Bank, reported net earnings
for the second quarter ended June 30, 2003 of $197,000, or
diluted earnings per share of $.15, a decrease of $50,000, or
20.2%, as compared to net earnings of $247,000, or diluted
earnings per share of $.17, recorded for the second quarter ended
June 30, 2002.
The decrease in net earnings for the second quarter 2003 was due
primarily to a $116,000, or 11.0%, decrease in net interest
income, which was partially offset by a $16,000, or 40.0%,
decrease in the provision for loan losses, a $27,000, or 31.8%,
increase in other income, and a $25,000, or 14.9%, decrease in
the provision for income taxes.
The increase in other income for the quarter ended June 30, 2003
was primarily attributable to a $21,000, or 24.7%, increase in
service charge and fee income and a $6,000 gain on the sale of
repossessed property.
For the six months ended June 30, 2003, PFS Bancorp, Inc.
reported net earnings of $418,000, or diluted earnings per share
of $.30, a decrease of $88,000, or 17.4%, as compared to the
$506,000, or diluted earnings per share of $.35, in earnings
reported for the six months ended June 30, 2002.
The decrease in net earnings for the six months ended June 30,
2003 was primarily due to a $117,000, or 5.7%, decrease in net
interest income and a $49,000, or 3.8% increase in general,
administrative and other expenses, which were partially offset by
a $16,000, or 25.0%, decrease in the provision for loan losses, a
$10,000, or 6.1%, increase in other income, and a $52,000, or
15.2%, decrease in the provision for income taxes.
At June 30, 2003, PFS Bancorp, Inc. reported total assets of
$117.8 million, total liabilities of $91.4 million, including
deposits of $90.3 million, and shareholders' equity of $26.4
million, or 22.4% of total assets. Book value, or shareholders'
equity, was $19.20 per share at June 30, 2003.
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)
(Unaudited)
June 30, December 31,
ASSETS 2003 2002
-------- ------------
Cash and cash equivalents $ 7,761 $5,225
Investment securities 13,368 15,303
Loans receivable 93,892 95,702
Other assets 2,820 2,806
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Total assets $117,841 $119,036
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LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits $90,307 $89,420
Advances from the FHLB - 1,000
Other liabilities 1,102 1,019
----- -----
Total liabilities 91,409 91,439
Shareholders' equity 26,432 27,597
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Total liabilities and shareholders' equity $117,841 $119,036
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PFS Bancorp, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(In thousands, except share data)
(Unaudited)
Six months ended Three months ended
June 30, June 30,
2003 2002 2003 2002
---------------- ------------------
Total interest income $2,996 $3,581 $1,447 $1,803
Total interest expense 1,070 1,538 506 746
----- ----- --- ---
Net interest income 1,926 2,043 941 1,057
Provision for losses on loans 48 64 24 40
-- -- -- --
Net interest income after provision for
losses on loans 1,878 1,979 917 1,017
Other income 175 165 112 85
General, administrative and other expense 1,346 1,297 689 687
----- ----- --- ---
Earnings before income taxes 707 847 340 415
Income taxes 289 341 143 168
--- --- --- ---
NET EARNINGS $ 418 $ 506 $ 197 $ 247
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EARNINGS PER SHARE
Basic $ .30 $ .35 $ .15 $ .17
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Diluted $ .30 $ .35 $ .15 $ .17
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