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10-K2026-03-25· x-ai/grok-4.1-fast

PFSB · PFS Bancorp, Inc.

0001104659-26-034464

SEC filing

Summary

PFS Bancorp, Inc. reported strong financial performance for FY 2025, with total assets reaching $206.9 million, up 4.8% from $197.6 million in 2024, driven by loan growth. Net income surged to $1.7 million, an 84.6% increase from $905 thousand in 2024, fueled by higher net interest income of $5.6 million (up 12.1%) amid rising yields on loans (5.57% average) and securities. Total interest and dividend income rose 11.6% to $8.9 million, while interest expense increased 10.5% to $3.3 million due to higher deposit costs. Noninterest expense declined 6.4% to $4.3 million, aiding profitability. EPS basic improved to $1.10 from $0.57. Balance sheet highlights include loans net at $108.9 million (up 13.2%), deposits at $166.5 million (up 4.3%), and equity at $39.1 million. Operating cash flow was $2.1 million, supporting liquidity. The bank's conservative underwriting maintained asset quality, with non-performing assets at 0.37% of total assets. This performance underscores effective interest rate management and loan portfolio diversification into higher-yielding commercial loans, positioning PFSB for sustained growth in its rural Illinois market.

Key takeaways

Full analysis

Performance Summary

PFS Bancorp, Inc. delivered robust FY 2025 results, with net income of $1.7 million, up 84.6% from $905 thousand in 2024. Total assets grew 4.8% to $206.9 million, supported by net loans expanding 13.2% to $108.9 million. Net interest income increased 12.1% to $5.6 million, driven by higher loan yields (5.57% vs. 5.10%) and securities yields. Noninterest income edged up 4.9% to $928K, while noninterest expense fell 6.4% to $4.3 million. EPS basic rose to $1.10 from $0.57. Asset quality remained strong, with non-performing assets at $245K or 0.37% of assets, down from 0.43%.

Revenue Analysis

Primary revenue from interest and dividends reached $8.9 million, up 11.6% YoY, with loans contributing $5.8 million (including fees). Net interest income of $5.6 million reflected loan growth and a 44 basis point spread expansion to 2.54%. Noninterest income totaled $928K, including $448K customer service fees and $383K other. No geographic or product segments beyond core banking (residential 60.1% of loans, commercial real estate 24.3%) were detailed; focus on LaSalle County market.

Margins & Profitability

Net interest margin improved to 2.88% from 2.69%, benefiting from higher asset yields outpacing liability costs (2.18% vs. 2.12%). Provision for credit losses decreased to $148K from $165K, with allowance at 0.77% of loans. Efficiency ratio enhanced to 66.15% from 78.50%, driven by lower data processing and other expenses. Return on average assets rose to 0.81% from 0.46%; ROE to 4.38% from 2.48%.

Cash Flow & Balance Sheet

Operating cash flow was $2.1 million. Investing activities used $8.5 million, mainly $12.7 million net loan growth offset by $9.4 million securities maturities. Financing provided $5.6 million from deposit inflows. Balance sheet solid: deposits $166.5 million (core 55.2%), equity $39.1 million (18.5% of assets). No FHLB advances; liquidity access $50.4 million.

Outlook

Strategy emphasizes residential lending (60.1% of portfolio) while growing commercial real estate (24.3%) and commercial loans for yield. Maintain conservative underwriting amid low non-performers (0.19% non-accrual). Risks include interest rates, economic conditions in rural Illinois, competition. No specific guidance; focus on core deposit growth and organic expansion.