EXHIBIT 99.1
PFS Bancorp, Inc.
Second and Bridgeway Streets
Aurora, Indiana 47001
January 29, 2004
FOR IMMEDIATE RELEASE:
CONTACT:
Stuart M. Suggs, Chief Financial Officer
PFS Bancorp, Inc.
(812) 926-0631
PFS Bancorp, Inc. Reports Net Earnings For the Year and the Quarter Ended
December 31, 2003.
Aurora, Indiana - PFS Bancorp, Inc. (Nasdaq National Market: PBNC), parent
company of Peoples Federal Savings Bank, reported net earnings for the year
ended December 31, 2003 of $827,000, or diluted earnings per share of $.60, a
decrease of $26,000, or 3.0%, as compared to the $853,000 of net earnings
recorded for the year ended December 31, 2002. Net earnings for the three
months ended December 31, 2003 amounted to $205,000, or $.15 per diluted
share, compared to the $197,000 recorded in the 2002 quarter.
The decrease in net earnings for the year resulted primarily from a $115,000,
or 2.9%, decrease in net interest income and a $33,000, or 1.2%, increase in
general, administrative and other expense, which were partially offset by a
$20,000, or 21.7%, decrease in the provision for losses on loans, a $62,000,
or 18.5%, increase in other income and a $40,000, or 6.4%, decrease in income
taxes. Earnings per share increased 1.7% due to the beneficial effects of the
Company's stock repurchase program, which resulted in a repurchase of 77,565
shares during 2003.
The decrease in net interest income year to year was primarily attributable to
a $1.1 million, or 16.0%, decrease in total interest income, which was
partially offset by a $978,000, or 33.7%, decrease in total interest expense,
due primarily to the overall decline in interest rates in the economy.
The increase in net earnings for the quarter ended December 31, 2003 was due
primarily to a $26,000, or 30.2%, increase in other income and a $19,000, or
2.7% decrease in general, administrative and other expense, which were
partially offset by a $12,000, or 1.3% decrease in net interest income and a
$20,000 increase in the provision for losses on loans.
At December 31, 2003, PFS Bancorp, Inc. reported total assets of $118.2
million, a decrease of $849,000, or .7%, compared to total assets at December
31, 2002. The decrease in assets was comprised primarily of a $5.1 million,
or 33.6%, decrease in investment securities. Proceeds from the maturities,
sales and repayments of investment securities were used to increase loans by
$4.6 million, or 4.8%, to $100.3 million and to fund the Company's stock
repurchase.
PFS Bancorp, Inc. is the unitary thrift holding company which conducts
business from its main office and two branch offices in southeastern Indiana.
PFS Bancorp, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(In thousands)
December 31, December 31,
ASSETS 2003 2002
Cash and cash equivalents $ 5,187 $ 5,225
Investment securities 10,168 15,303
Loans receivable 100,293 95,702
Other assets 2,539 2,806
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Total assets $ 118,187 $ 119,036
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LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits $ 88,328 $ 89,420
Advances from the FHLB 2,000 1,000
Other liabilities 937 1,019
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Total liabilities 91,265 91,439
Shareholders' equity 26,922 27,597
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Total liabilities and shareholders' equity $ 118,187 $ 119,036
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PFS Bancorp, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(In thousands, except share data)
Three months ended Year ended
December 31, December 31,
2003 2002 2003 2002
(Unaudited) (Unaudited)
Total interest income $1,349 $1,594 $5,747 $6,840
Total interest expense 403 636 1,922 2,900
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Net interest income 946 958 3,825 3,940
Provision for losses on loans 24 4 72 92
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Net interest income after provision for
losses on loans 922 954 3,753 3,848
Other income 112 86 398 336
General, administrative and other expense 681 700 2,740 2,707
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Earnings before income taxes 353 340 1,411 1,477
Income taxes 148 143 584 624
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NET EARNINGS $205 $197 $827 $853
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EARNINGS PER SHARE
Basic $.15 $.14 $.60 $.59
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Diluted $.15 N/A $.60 N/A
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