PFS Bancorp has authorized and executed stock repurchase programs in recent years, reflecting active capital management.

• On December 3, 2025, PFS Bancorp authorized additional stock repurchases beyond prior programs [N1].
• On December 5, 2024, the company authorized a stock repurchase program for up to 172,500 shares, representing 10% of shares outstanding at that time [N2].
• During the quarter ended September 30, 2025, the company repurchased 47,700 shares at an average price of $11.62 per share under the authorized program [S2].

The company has demonstrated disciplined growth in its loan portfolio with a focus on higher-yielding commercial loans while maintaining conservative underwriting standards. Its stock repurchase programs indicate management's confidence in capital allocation. The defined market area and regulatory compliance provide a stable operating environment. The company’s increasing emphasis on commercial real estate and commercial loans may enhance portfolio yield.

PFS Bancorp operates in a predominantly rural market with strong competition from larger banks and alternative financial service providers. Its limited geographic footprint and relatively small market share constrain growth opportunities. The company’s reliance on interest income with minimal noninterest income diversification may expose it to margin pressure. Regulatory changes, economic downturns, or adverse real estate market conditions could impact loan performance and liquidity.

PFS Bancorp's moat is primarily local and regulatory. Its focus on a defined geographic market with established relationships and regulatory oversight provides some competitive stability. The company's conservative underwriting standards and diversified loan portfolio within its market area contribute to risk management. However, competition from larger banks, fintech, and other financial institutions limits its market share expansion potential.

• Economic and Market Risks: Adverse changes in general economic conditions, real estate values, and loan demand in the primary market area could negatively affect loan performance and deposit growth.
• Regulatory and Compliance Risks: The company is subject to comprehensive regulation by multiple agencies, and changes in laws, capital requirements, or regulatory fees could impact operations.
• Credit and Portfolio Risks: Changes in loan delinquencies, credit losses, or portfolio composition, especially with increased commercial lending, could affect financial results.
• Competition Risks: Strong competition from banks, credit unions, fintech, and other financial institutions may limit growth in loans and deposits.
• Operational and Cybersecurity Risks: Failures or breaches in operational or information security systems, including cyberattacks, could disrupt business and harm reputation.

• PFS Bancorp, Inc. was incorporated in February 2023 as the holding company for Peru Federal Savings Bank following its conversion from a mutual to a stock organization completed on October 17, 2023.
• The company operates primarily through its wholly owned subsidiary, Peru Federal Savings Bank, a federally-chartered savings bank headquartered in Peru, Illinois, with two offices in Peru.
• As of December 31, 2025, PFS Bancorp had total consolidated assets of $207.0 million, loans of $108.9 million, deposits of $166.5 million, and stockholders' equity of $39.0 million.
• The primary business consists of accepting deposits and investing in one- to four-family residential mortgage loans secured by properties in its primary market area, which includes LaSalle County and adjacent counties in Illinois.
• The loan portfolio at December 31, 2025, was composed of approximately 60.1% one- to four-family residential loans, 24.3% commercial real estate loans, 5.2% commercial loans, and smaller portions of multi-family, construction, home equity, and consumer loans.
• Loan underwriting follows conservative standards with loan-to-value limits generally at 80% for residential and 75% for commercial loans, with no interest-only or negative amortization loans offered.
• The company offers electronic banking services including mobile and online banking, bill pay, and Zelle transfers.
• PFS Bancorp is regulated by the Federal Reserve Board as a savings and loan holding company; Peru Federal is regulated by the OCC and FDIC and is a member of the Federal Home Loan Bank system.
• The company faces competition from large money center banks, regional banks, community banks, credit unions, mortgage banking firms, fintech companies, and other financial institutions in its market area.
• At June 30, 2025, the company ranked 8th among 22 FDIC-insured institutions in LaSalle County with a 4.4% deposit market share.
• The company has authorized stock repurchase programs, including a program announced December 5, 2024, for up to 172,500 shares and an additional authorization on December 3, 2025, for further repurchases.
• During the quarter ended September 30, 2025, the company repurchased 47,700 shares at an average price of $11.62 per share under the authorized program.
• Financial figures from the latest SEC filings for the fiscal year ended December 31, 2025, include net income of $1.671 million, basic EPS of $1.10, and diluted EPS of $1.09.
• Liquidity ratios are not disclosed in the filings; cash and equivalents and current assets/liabilities data are not provided.
• The company’s primary revenue source is interest income from loans and investments; noninterest income is not significant.