EXHIBIT 99.1
PFS Bancorp, Inc.
Second and Bridgeway Streets
Aurora, Indiana 47001
October 31, 2003
FOR IMMEDIATE RELEASE:
CONTACT:
Stuart M. Suggs, Chief Financial Officer
PFS Bancorp, Inc.
(812) 926-0631
PFS Bancorp, Inc. Reports Net Earnings For Third Quarter Ended
September 30, 2003.
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Aurora, Indiana - PFS Bancorp, Inc. (Nasdaq: PBNC), parent
company of Peoples Federal Savings Bank, reported net earnings
for the third quarter ended September 30, 2003 of $204,000, or
diluted earnings per share of $.15, an increase of $54,000, or
36.0%, as compared to net earnings of $150,000, or diluted
earnings per share of $.10, recorded for the third quarter ended
September 30, 2002.
The increase in net earnings was due primarily to a $14,000, or
1.5%, increase in net interest income, a $26,000, or 30.6%,
increase in other income and a $36,000, or 5.1%, decrease in
general, administrative and other expense, which were partially
offset by a $15,000, or 62.5%, increase in the provision for
losses on loans and a $7,000, or 5.0%, increase in the provision
for income taxes.
The increase in other income for the quarter ended September 30,
2003 was primarily attributable to a $26,000, or 30.6%, increase
in service charges and fee income.
The decrease in general, administrative and other expense was
primarily attributable to a $46,000, or 41.8%, decrease in data
processing expense, which was partially offset by a $13,000, or
16.9%, increase in occupancy and equipment expense. These
expenses are directly related to the core system conversion in
the third quarter ended September 30, 2002.
For the nine months ended September 30, 2003, PFS Bancorp, Inc.
reported net earnings of $622,000, or diluted earnings per share
of $.45, a decrease of $34,000, or 5.2%, compared to the
$656,000, or diluted earnings per share of $.45, in net earnings
reported for the nine months ended September 30, 2002.
The decrease in net earnings for the nine months ended September
30, 2003 was primarily due to a $103,000, or 3.5%, decrease in
net interest income and a $13,000, or .6%, increase in general,
administrative and other expenses, which were partially offset by
a $36,000, or 14.4%, increase in other income and a $45,000, or
9.4%, decrease in the provision for income taxes.
At September 30, 2003, PFS Bancorp, Inc. reported total assets
of $117.6 million, total liabilities
of $91.0 million, including deposits of $89.8 million, and shareholders'
equity of $26.6 million, or 22.6%, of total assets. Book value, or
shareholders' equity, was $18.04 per share at September 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)
September 30, December 31,
ASSETS 2003 2002
Cash and cash equivalents $ 6,091 $5,225
Investment securities 12,024 15,303
Loans receivable 96,720 95,702
Other assets 2,790 2,806
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Total assets $117,625 $119,036
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LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits $89,837 $89,420
Advances from the FHLB - 1,000
Other liabilities 1,198 1,019
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Total liabilities 91,035 91,439
Shareholders' equity 26,590 27,597
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Total liabilities and shareholders' equity $117,625 $119,036
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PFS Bancorp, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(In thousands, except share data)
(Unaudited)
Nine months ended Three months ended
September 30, September 30,
2003 2002 2003 2002
<s> <c> <c> <c> <c>
Total interest income $4,398 $5,246 $1,402 $1,665
Total interest expense 1,519 2,264 449 726
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Net interest income 2,879 2,982 953 939
Provision for losses on loans 87 88 39 24
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Net interest income after provision for
losses on loans 2,792 2,894 914 915
Other income 286 250 111 85
General, administrative and other expense 2,020 2,007 674 710
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Earnings before income taxes 1,058 1,137 351 290
Income taxes 436 481 147 140
----- ----- ---- ----
NET EARNINGS $ 622 $ 656 $ 204 $ 150
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EARNINGS PER SHARE
Basic $ .45 $ .45 $ .15 $.10
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Diluted $ .45 $ .45 $ .15 $.10
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