Exhibit 99.1
PFS Bancorp, Inc.
Second and Bridgeway Streets
Aurora, Indiana 47001
July 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 Quarter and Six Months Ended
June 30, 2005.
Aurora, Indiana - PFS Bancorp, Inc. (Nasdaq National Market: PBNC), parent
company of Peoples Federal Savings Bank, reported net earnings for the second
quarter ended June 30, 2005 of $236,000, or diluted earnings per share of $.16,
an increase of $15,000, or 6.8%, from the $221,000 in net earnings, or $.15 of
diluted earnings per share recorded for the second quarter ended June 30, 2004.
Book value, or stockholders' equity totaled $14.01 per share at June 30, 2005.
The increase in net earnings for the quarter resulted primarily from a $46,000,
or 4.6%, increase in net interest income and a $6,000, or 4.8%, increase in
other income which were partially offset by a $29,000, or 4.0%, increase in
general, administrative and other expense and an $8,000, or 5.3%, increase in
income taxes.
For the six months ended June 30, 2005, PFS Bancorp, Inc. reported net earnings
of $457,000, or diluted earnings per share of $.32, an increase of $19,000, or
4.3%, as compared to the $438,000, or diluted earnings per share of $.31, in
earnings reported for the six months ended June 30, 2004.
The increase in net earnings for the six months ended June 30, 2005 was
primarily due to a $74,000, or 3.7%, increase in net interest income and a
$56,000, or 23.1%, increase in other income which were partially offset by an
$104,000, or 7.3%, increase in general, administrative and other expense and
a $7,000, or 2.3%, increase in income taxes.
At June 30, 2005, PFS Bancorp, Inc. reported total assets of $134.0 million,
an increase of $4.2 million, or 3.3%, compared to total assets at December 31,
2004. The increase in assets was comprised primarily of a $6.5 million, or
5.7%, increase in loans receivable which was partially funded by an increase
in deposits of $3.6 million, or 4.1%, to $90.5 million at June 30, 2005.
On May 4, 2005, Peoples Community Bancorp, Inc. of West Chester, Ohio
announced an Agreement and Plan of Merger with PFS Bancorp, Inc. Under the
terms of the agreement, Peoples Community Bancorp, Inc. will pay $23.00 in
cash for each of the outstanding common shares of PFS Bancorp, Inc. The
merger is expected to be consummated in the fourth quarter of 2005.
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)
June 30, December 31,
ASSETS 2005 2004
Cash and cash equivalents $ 5,600 $ 7,484
Investment securities 4,187 5,157
Loans receivable 121,210 114,673
Other assets 2,983 2,440
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Total assets $133,980 $129,754
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LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits $ 90,539 $ 86,939
Advances from the FHLB 21,500 17,500
Note payable - 3,500
Other liabilities 1,300 1,286
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Total liabilities 113,339 109,225
Shareholders' equity 20,641 20,529
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Total liabilities and shareholders' equity $133,980 $129,754
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PFS Bancorp, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(In thousands, except share data)
Six months ended Three months ended
June 30, March 31,
2005 2004 2005 2004
(Unaudited) (Unaudited)
<s> <c> <c> <c> <c>
Total interest income $3,307 $2,742 $1,699 $1,370
Total interest expense 1,256 765 656 373
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Net interest income 2,051 1,977 1,043 997
Provision for losses on loans 48 48 24 24
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Net interest income after provision for
losses on loans 2,003 1,929 1,019 973
Other income 298 242 130 124
General, administrative and other expense 1,535 1,431 753 724
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Earnings before income taxes 766 740 396 373
Income taxes 309 302 160 152
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NET EARNINGS $ 457 $ 438 $ 236 $ 221
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EARNINGS PER SHARE
Basic $.33 $.32 $.17 $.16
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Diluted $.32 $.31 $.16 $.15
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