Peoples Federal Bancshares, Inc. Announces Fourth Quarter And Fiscal Year End Results

BRIGHTON, Mass., Nov. 19, 2010 (GLOBE NEWSWIRE) -- Peoples Federal Bancshares, Inc. (the "Company") (Nasdaq:PEOP), the holding company for Peoples Federal Savings Bank (the "Bank"), a federally chartered savings bank headquartered in Brighton, Massachusetts, announced earnings for the fourth fiscal quarter and the fiscal year ended September 30, 2010. For the three months ended September 30, 2010, the Company reported a net loss of $2.7 million, as compared to net income of $308,000 for the same period last year. For the fiscal year ended September 30, 2010, the Company reported a net loss of $164,000, as compared to net income of $2.7 million for the prior fiscal year. The loss was the result of a non-recurring charge of $5.3 million for the contribution made to the Peoples Federal Savings Bank Charitable Foundation recorded in the fourth quarter of 2010. Because shares had not been issued and outstanding during the entire period, earnings per share have not been reported for the twelve months ended September 30, 2010.

On July 6, 2010, the Bank completed its mutual-to-stock conversion and related stock offering with the issuance of 7,141,500 shares (including 529,000 shares issued to the Peoples Federal Savings Bank Charitable Foundation). The Company's stock began trading on July 7, 2010, on the Nasdaq Capital Market, under the symbol "PEOP".

Net interest income for the three months and year ended September 30, 2010 increased to $3.9 million and $14.9 million, respectively, from $3.3 million and $13.9 million, respectively, for the prior year periods.  Noninterest income for the three months ended September 30, 2010 increased to $487,000 from $419,000 for the year earlier period. For the year ended September 30, 2010, noninterest income increased to $1.9 million from $1.8 million for year ended September 30, 2009. Noninterest expense increased to $9.0 million, and included a $5.3 million contribution to the Peoples Federal Savings Bank Charitable Foundation for the three months ended September 30, 2010, as compared to $3.2 million for the year earlier period.  For the year ended September 30, 2010, noninterest expense increased to $17.1 million as compared to $11.3 million for year ended September 30, 2009. 

Since September 30, 2009, the Company's balance sheet has increased by $63.1 million or 13.1%, to $545.9 million. The increase is primarily attributed to the increase in capital from the stock offering. Net loans increased 4.1%. The increase in loans was primarily due to residential and commercial real estate loan demand. Cash and cash equivalents increased by $25.3 million to $113.9 million at September 30, 2010 from $88.6 million at September 30, 2009. This increase was the result of investing a portion of the stock offering proceeds in short-term investments. FHLB borrowings decreased by $25.0 million, or 43.1%, from September 30, 2009.  Deposits increased by $24.3 million to $390.8 million at September 30, 2010 from $366.5 million at September 30, 2009.

Non-performing assets totaled $3.0 million or 0.55 percent of total assets at September 30, 2010 as compared to $5.7 million or 1.18 percent of total assets at September 30, 2009.      

Maurice H. Sullivan, Jr., Chairman and Chief Executive Officer of the Company, commented. "We have a dedicated and enthusiastic team here at Peoples Federal. As we work toward implementing a growth strategy, focused on building profitable lending and deposit relationships, we remain committed to serving our communities with the highest level and quality of customer service. Our local charities and neighborhoods will benefit from our support through the $5.3 million donation to the Peoples Federal Savings Charitable Foundation. We appreciate the support expressed by our depositors in the Company's public offering, and we will work hard to enhance shareholder value for them as we move forward."

Certain statements herein constitute "forward-looking statements" and actual results may differ from those contemplated by these statements. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include words like "believe," "expect," "anticipate," "estimate," and "intend" or future or conditional verbs such as "will," "would," "should," "could" or "may." Certain factors that could cause actual results to differ materially from expected results include changes in the interest rate environment, changes in general economic conditions, legislative and regulatory changes that adversely affect the businesses in which Peoples Federal Bancshares, Inc. is engaged and changes in the securities market. The Company disclaims any intent or obligation to update any forward-looking statements, whether in response to new information, future events or otherwise.  
 
 
PEOPLES FEDERAL BANCSHARES, INC. AND SUBSIDIARY
 CONSOLIDATED BALANCE SHEETS
     
  September 30, 2010 September 30, 2009
   (unaudited)  
  (In Thousands, except share data)
ASSETS    
Cash and due from banks $9,154 $9,491
Interest-bearing demand deposits with other banks and money market mutual funds 66,888 13,954
Federal funds sold 12,505 14,980
Federal Home Loan Bank - overnight deposit 25,316 50,209
Total cash and cash equivalents 113,863 88,634
Investments in available-for-sale securities (at fair value) 23,596 6,328
Federal Home Loan Bank stock, at cost 4,339 4,339
Loans, net of allowance for loan losses of $3,203 as of September 30, 2010 (unaudited) and $3,204 as of September 30, 2009 377,664 362,667
Real estate owned  795 --
Loans held for sale 260  --
Premises and equipment 3,257 3,473
Accrued interest receivable 1,589 1,544
Cash surrender value of life insurance policies 11,670 11,249
Deferred income tax asset, net 5,647 3,394
Other assets 3,257 1,200
Total assets $545,937 $482,828
     
LIABILITIES AND EQUITY    
Deposits:    
Noninterest-bearing $35,359 $30,489
Interest-bearing 355,480 335,975
Total deposits 390,839 366,464
Federal Home Loan Bank advances 33,000 58,000
Other liabilities 7,738 7,421
Total liabilities 431,577 431,885
     
Equity:    
Preferred stock, $.01 par value, 50,000,000 shares authorized, none issued -- --
Common stock, $.01, par value, 100,000,000 shares authorized, 7,141,500 shares issued and outstanding 71 --
Additional paid in capital  69,331  --
Retained earnings 50,606 50,770
Accumulated other comprehensive income  65 173
Unearned compensation ESOP (5,713)  --
Total equity 114,360 50,943
Total liabilities and equity $545,937 $482,828
 
 PEOPLES FEDERAL BANCSHARES, INC. AND SUBSIDIARY
 CONSOLIDATED STATEMENTS OF INCOME
 
  Quarter ended September 30, Year ended September 30, 
   2010    2009    2010    2009  
   (unaudited)   (unaudited) 
   (In Thousands)
Interest and dividend income:        
Interest and fees on loans $5,061 $5,316 $20,791 $21,962
Interest on debt securities:        
Taxable 59 72 159 599
Other interest 65 14 136 30
Dividends on Federal Home Loan Bank stock  -- --  -- 23
Total interest and dividend income 5,185 5,402 21,086 22,614
Interest expense:        
Interest on deposits 1,006 1,520 4,571 6,200
Interest on Federal Home Loan Bank advances 327 538 1,663 2,487
Total interest expense 1,333 2,058 6,234 8,687
Net interest and dividend income 3,852 3,344 14,852 13,927
Provision for loan losses  -- -- 300 127
Net interest and dividend income after provision for loan losses 3,852 3,344 14,552 13,800
Noninterest income:        
Customer service fees 207 205 822 813
Net loan servicing (costs) fees (29) (16) 46 28
Net gain on sales of mortgage loans 106 116 277 307
Net gain on sales of available-for-sale securities -- -- 210 208
Income on cash surrender value of life insurance 102 101 420 391
Other income 101 13 165 69
Total noninterest income 487 419 1,940 1,816
Noninterest expense:        
Salaries and employee benefits 2,209 1,994 7,424 7,079
Occupancy expense 200 194 797 766
Equipment expense 104 103 412 400
Professional fees 367 159 681 465
Advertising expense 31 36 140 185
Data processing expense 237 149 705 832
Deposit insurance expense 184 225 542 587
 Charitable Foundation contribution  5,290 -- 5,290 --
 Other expense 350 366 1,064 949
 Total noninterest expense 8,972 3,226 17,055 11,263
(Loss) income before income taxes (4,633) 537 (563) 4,353
Income tax (benefit) expense (1,970) 229 (399) 1,681
Net (loss) income $(2,663) $308 $(164) $2,672
CONTACT:  Peoples Federal Bancshares, Inc.          Maurice H. Sullivan, Jr.          (617) 254-0707

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