PFS Bancorp, Inc. (OTC: PFSB)

PFS Bancorp, Inc. was incorporated in February 2023 to become the holding company for Peru Federal Savings Bank upon the conversion of the bank from mutual to stock form. The conversion was completed on October 17 2023 and the company issued 1 725 000 shares of common stock at $10.00 per share. PFS Bancorp is a registered savings and loan holding company under the supervision of the Federal Reserve Board and conducts its business through its wholly owned subsidiary Peru Federal Savings Bank. The bank is a federally chartered savings institution headquartered at 1730 Fourth Street Peru Illinois 61354 with a telephone number of (815) 223-4300 and a website at www perufederalsavings com. As of December 31 2025 the holding company reported total consolidated assets of $207.0 million gross loans of $108.9 million total deposits of $166.5 million and stockholders equity of $39.0 million. Peru Federal accepts deposits from the public and invests those funds in a variety of loans and investment securities while offering basic banking products such as checking savings money market and certificate of deposit accounts along with electronic banking services including mobile banking online bill pay and Zelle transfers.

The company's primary source of revenue is interest income earned on its loan portfolio and investment securities. As of December 31 2025 loans totaled $108.9 million with residential mortgages representing 60.1 percent commercial real estate loans 24.3 percent commercial loans 5.2 percent multi family loans 2.5 percent home equity lines of credit 3.1 percent consumer loans 3.4 percent and construction and land development loans 1.4 percent. Interest on loans is generated from both fixed rate and adjustable rate products with rates tied to secondary market benchmarks the Prime rate or internal committee decisions depending on the loan type. The investment portfolio consists of U. S. Treasury and federal agency securities mortgage backed securities issued by government sponsored enterprises and municipal securities which provide additional interest income. Noninterest income is relatively small and comprises mainly service charges on deposit accounts fees from electronic banking services and occasional gains from loan sales or servicing rights. The bank gathers funds primarily through deposits which include noninterest bearing demand deposits regular savings deposits NOW deposits money market deposits and time deposits.

PFS Bancorp operates in a competitive banking environment that includes large national banks regional banks community banks savings institutions and credit unions all vying for loans and deposits in the LaSalle County area. According to FDIC data as of June 30 2025 the bank ranked eighth among twenty two FDIC insured institutions in LaSalle County with a deposit market share of 4.4 percent. The local economy is historically agricultural with a mix of health care manufacturing and services and major employers such as OSF Saint Elizabeth Medical Center Wal Mart Distribution Center Constellation Energy LaSalle County Generating Station Vactor Manufacturing Ace Hardware Distribution Center and Martin Engineering. Competitive advantages stem from the bank's deep community ties long standing customer relationships personalized service and a reputation for conservative underwriting. In recent years the bank has gradually increased its focus on higher yielding commercial real estate and commercial loans to improve asset yields while maintaining prudent credit standards. PFS Bancorp remains well capitalized with strong regulatory capital ratios that exceed the thresholds for being considered well capitalized under federal guidelines.

The bank serves a diverse customer base that includes individual consumers households farmers small businesses and commercial enterprises located primarily in the Illinois Valley region of North Central Illinois. Deposit relationships are built with savers who place funds in noninterest bearing demand accounts regular savings accounts NOW accounts money market accounts and certificates of deposit. On the lending side the bank extends credit to residential homebuyers real estate investors agricultural producers and business owners seeking financing for equipment inventory working capital or commercial real estate projects. Although the filing does not disclose specific customer names the institution's activities are concentrated on local residents and businesses that rely on traditional relationship banking. The bank also provides electronic banking tools such as mobile banking online bill pay and Zelle transfers to meet the evolving needs of its clientele.