EXHIBIT 99.1
PFS Bancorp, Inc.
Second and Bridgeway Streets
Aurora, Indiana 47001
April 27, 2004
FOR IMMEDIATE RELEASE:
CONTACT:
Stuart M. Suggs, Corp. Treasurer, VP, & CFO
PFS Bancorp, Inc.
(812) 926-0631
PFS Bancorp, Inc. Reports Net Earnings For the Year and the Quarter Ended
March 31, 2004.
Aurora, Indiana - PFS Bancorp, Inc. (Nasdaq National Market: PBNC), parent
company of Peoples Federal Savings Bank, reported net earnings for the first
quarter ended March 31, 2004 of $217,000, or diluted earnings per share of
$.16, a decrease of $4,000, or 1.8%, from the $221,000 in net earnings, or
$.15 of diluted earnings per share recorded for the first quarter ended
March 31, 2003. Book value, or stockholders' equity, was $18.35 per share at
March 31, 2004.
The decrease in net earnings for the quarter resulted primarily from a
$5,000, or .5%, decrease in net interest income, a $50,000, or 7.6%, increase
in general, administrative and other expense, and a $4,000, or 2.7%, increase
in income taxes which were partially offset by a $55,000, or 87.3%, increase
in other income.
The increase in other income for the quarter was primarily attributable to a
$31,000, or 35.6%, increase in service charge and fee income. However, for
the comparable quarter ended March 31, 2003, there was a $28,000 loss on the
sale of investment securities which reduced total other income for such
period.
The increase in general, administrative and other expense for the quarter was
due primarily to a $40,000, or 10.3%, increase in employee compensation and
benefits and a $12,000, or 24.0% increase in data processing expenses. The
increase in employee compensation and benefits was attributable to increased
costs associated with the Company's stock benefit plans, retirement plan and
insurance premiums, as well as normal merit increases quarter to quarter.
At March 31, 2004, PFS Bancorp, Inc. reported total assets of $121.3 million,
an increase of $3.0 million, or 2.6%, compared to total assets at December
31, 2003. The increase in assets was comprised primarily of a $3.0 million,
or 3.0%, increase in loans receivable which was funded by additional advances
from the Federal Home Loan Bank totaling $4.0 million.
PFS Bancorp, Inc. is the unitary thrift holding company for Peoples Federal
Savings Bank 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)
March 31, December 31,
ASSETS 2004 2003
Cash and cash equivalents $ 5,318 $ 5,187
Investment securities 10,000 10,168
Loans receivable 103,329 100,293
Other assets 2,642 2,625
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Total assets $121,289 $118,273
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LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits $86,968 $88,328
Advances from the FHLB 6,000 2,000
Other liabilities 1,277 1,023
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Total liabilities 94,245 91,351
Shareholders' equity 27,044 26,922
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Total liabilities and shareholders' equity $121,289 $118,273
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PFS Bancorp, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(In thousands, except share data)
Three months ended
March 31,
2004 2003
(Unaudited)
Total interest income $1,372 $1,549
Total interest expense 392 564
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Net interest income 980 985
Provision for losses on loans 24 24
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Net interest income after provision for
losses on loans 956 961
Other income 118 63
General, administrative and other expense 707 657
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Earnings before income taxes 367 367
Income taxes 150 146
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NET EARNINGS $217 $221
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EARNINGS PER SHARE
Basic $.16 $.15
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Diluted $.16 $.15
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