Exhibit 99.1
PFS Bancorp, Inc.
Second and Bridgeway Streets
Aurora, Indiana 47001
January 28, 2005
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 Year and the Quarter Ended
December 31, 2004.
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, 2004 of $897,000, or
diluted earnings per share of $.64, an increase of $70,000, or
8.5%, as compared to the $827,000, or diluted earnings per share
of $.60, of net earnings recorded for the year ended December 31,
2003. Net earnings for the three months ended December 31, 2004
amounted to $229,000, or $.17 per diluted share, an increase of
11.7% over the $205,000, or $.15 per diluted share, recorded in
the 2003 quarter.
The increase in net earnings for the year resulted primarily from
a $148,000, or 3.9%, increase in net interest income and a
$105,000, or 26.4%, increase in other income, which were
partially offset by a $44,000, or 84.6%, increase in the
provision for losses on loans, a $102,000, or 3.7%, increase in
general, administrative and other expense and a $37,000, or 6.6%,
increase in income taxes.
The increase in net interest income year to year was primarily
attributable to a $218,000, or 11.3%, decrease in total interest
expense, which was offset by a $70,000, or 1.2%, decrease in
total interest income, both trends generally reflecting the low
interest rate environment encountered throughout much of 2004.
The increase in other income year to year resulted primarily from
a $66,000, or 24.6%, increase in service charges and a $21,000,
or 42.0%, increase in ATM fee income.
The increase in net earnings for the quarter ended December 31,
2004 was due primarily to a $12,000, or 1.3%, increase in net
interest income, a $17,000, or 15.2%, increase in other income
and a $27,000, or 3.7%, decrease in general, administrative and
other expense, which were partially offset by a $20,000 increase
in the provision for losses on loans income and a $12,000, or
9.4%, increase in income taxes.
At December 31, 2004, PFS Bancorp, Inc. reported total assets of
$129.8 million, an increase of $11.5 million, or 9.7%, compared
to total assets at December 31, 2003. The increase in assets was
comprised primarily of a $14.4 million, or 14.3%, increase in
loans receivable which was principally funded by additional
advances from the Federal Home Loan Bank, which increased by
$15.5 million.
During the quarter ended December 31, 2004, a special $5.00 per
share dividend was paid to shareholders, financed primarily
through the redemption of $3.0 million of maturing securities and
borrowings of $3.5 million. For the year 2004, PFS Bancorp, Inc.
paid $5.225 per share in dividends all of which are currently
viewed as non-taxable to our shareholders.
PFS Bancorp, Inc. is a 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 2004 2003
(Unaudited)
Cash and cash equivalents $ 7,484 $ 5,187
Investment securities 5,157 10,168
Loans receivable 114,673 100,293
Other assets 2,446 2,625
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Total assets $129,760 $118,273
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LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits $86,939 $88,328
Advances from the FHLB 17,500 2,000
Note payable 3,500 -
Other liabilities 1,292 1,023
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Total liabilities 109,231 91,351
Shareholders' equity 20,529 26,922
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Total liabilities and shareholders' equity $129,760 $118,273
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PFS Bancorp, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(In thousands, except share data)
Year ended Three months ended
December 31, December 31,
2004 2003 2004 2003
(Unaudited) (Unaudited)
Total interest income $5,677 $5,747 $1,482 $1,349
Total interest expense 1,704 1,922 524 403
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Net interest income 3,973 3,825 958 946
Provision for losses on loans 96 52 24 4
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Net interest income after provision for
losses on loans 3,877 3,773 934 942
Other income 503 398 129 112
General, administrative and other expense 2,882 2,780 694 721
----- ----- ----- -----
Earnings before income taxes 1,498 1,391 369 333
Income taxes 601 564 140 128
----- ----- ----- -----
NET EARNINGS $897 $827 $229 $205
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EARNINGS PER SHARE
Basic $.65 $.60 $.17 $.15
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Diluted $.64 $.60 $.17 $.15
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