Exhibit 99.1
PFS Bancorp, Inc.
Second and Bridgeway Streets
Aurora, Indiana 47001
October 28, 2004
FOR IMMEDIATE RELEASE:
CONTACT:
Stuart M. Suggs, Corp. Treasurer, COO & CFO
PFS Bancorp, Inc.
(812) 926-0631
PFS Bancorp, Inc. Reports Net Earnings For the Quarter and Nine Months Ended
September 30, 2004.
Aurora, Indiana - PFS Bancorp, Inc. (Nasdaq National Market: PBNC),
parent company of Peoples Federal Savings Bank, reported net earnings
for the third quarter ended September 30, 2004 of $230,000, or diluted
earnings per share of $.16, an increase of $26,000, or 12.7%, from the
$204,000 in net earnings, or $.15, of diluted earnings per share
recorded for the third quarter ended September 30, 2003. Book value
per share totaled $18.58 at September 30, 2004. The book value, or
stockholders' equity per share of $18.58 excludes the special dividend
of $5.00 per share payable on October 28, 2004 to stockholders of
record of October 18, 2004.
The increase in net earnings for the quarter resulted primarily from
an $85,000, or 8.9%, increase in net interest income and a $21,000, or
18.9%, increase in other income which were partially offset by a
$24,000 increase in the provision for losses on loans, a $44,000, or
6.2%, increase in general, administrative and other expense and a
$12,000, or 8.2%, increase in income taxes.
The increase in net interest income for the quarter was primarily
attributable to a $12.3 million, or 12.3%, increase in loans
receivable and a continued decrease in the Company's cost of funds.
For the nine months ended September 30, 2004, PFS Bancorp, Inc.
reported net earnings of $668,000, or diluted earnings per share of
$.47, an increase of $46,000, or 7.4%, as compared to the $622,000 in
net earnings, or diluted earnings per share of $.45, reported for the
nine months ended September 30, 2003.
The increase in net earnings for the nine months ended September 30,
2004 was primarily due to an $136,000, or 4.7%, increase in net
interest income and an $88,000, or 30.8%, increase in other income
which were partially offset by a $24,000, or 50.0%, increase in the
provision for losses on loans, an $129,000, or 6.3%, increase in
general, administrative and other expense and a $25,000, or 5.7%,
increase in income taxes.
At September 30, 2004, PFS Bancorp, Inc. reported total assets of
$127.1 million, an increase of $8.9 million, or 7.5%, compared to
total assets at December 31, 2003. The increase in assets was
comprised primarily of the aforementioned increase in loans
receivable, funded principally by additional advances from the Federal
Home Loan Bank totaling $14.5 million. Deposits decreased by $6.5
million, or 7.4%, primarily due to withdrawals from one municipality
account.
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)
September 30, December 31,
ASSETS 2004 2003
(Unaudited)
Cash and cash equivalents $ 3,516 $ 5,187
Investment securities 8,512 10,168
Loans receivable 112,618 100,293
Other assets 2,499 2,625
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Total assets $127,145 $118,273
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LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits $ 81,817 $ 88,328
Advances from the FHLB 16,500 2,000
Other liabilities 1,453 1,023
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Total liabilities 99,770 91,351
Shareholders' equity 27,375 26,922
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Total liabilities and shareholders' equity $127,145 $118,273
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PFS Bancorp, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(In thousands, except share data)
Nine months ended Three months ended
September 30, June 30,
2004 2003 2004 2003
(Unaudited) (Unaudited)
Total interest income $4,195 $4,398 $1,453 $1,402
Total interest expense 1,180 1,519 415 449
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Net interest income 3,015 2,879 1,038 953
Provision for losses on loans 72 48 24 -
----- ----- ----- -----
Net interest income after provision for
losses on loans 2,943 2,831 1,014 953
Other income 374 286 132 111
General, administrative and other expense 2,188 2,059 757 713
----- ----- ----- -----
Earnings before income taxes 1,129 1,058 389 351
Income taxes 461 436 159 147
----- ----- ----- -----
NET EARNINGS $ 668 $ 622 $ 230 $ 204
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EARNINGS PER SHARE
Basic $.48 $.45 $.16 $.15
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Diluted $.47 $.45 $.16 $.15
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