SJOE ST Joseph Capital

St. Joseph Capital Corporation Announces 4th Quarter & Full Year Earnings, $.04 Dividend Per Common Share Declared MISHAWAKA, Ind., Feb. 17 /PRNewswire-FirstCall/ -- St. Joseph Capital Corporation today announced financial results for the fourth quarter and full year 2003. For the year ending December 31, 2003 net income increased to $1.824 million, up 8.4% from $1.683 million recorded in 2002. Net income rose 6.4% during the fourth quarter of 2003 with profits reaching $515,000 compared to $484,000 for the same quarter a year ago. The Company's basic earnings per common share for 2003 were $1.08, an increase of $.08 or 8.0% over 2002. Basic earnings per common share for the fourth quarter of 2003 were $.30, up $.01 or 3.5%, compared to $.29for the fourth quarter of 2002. Total assets grew to $288.3 million at December 31, 2003 compared to $253.8 million at December 31, 2002, an increase of 13.6%. Total net loans reached $223.0 million at year-end compared to $189.1 million at December 31, 2002, an 18.0% increase. In announcing fourth quarter results, Chairman, President and Chief Executive Officer John W. Rosenthal said, "Among the important drivers of the Company's financial success is our long-standing commitment to superior assetquality. For the seventh consecutive year, St. Joseph Capital Bank did not experience any loan charge-offs. Our Board has expressed its strong confidence in our success and future direction by declaring a $.04 dividend per common share for the first quarter of 2004. This is the first such dividend declaration in the history of the Company and is an exciting development in our evolution." The implied annual dividend rate is $.16 per common share. However, any future declaration of dividends will be determined on a quarterly basis and will be contingent on a variety of factors related to the Company's ongoing performance. St. Joseph Capital Corporation is a bank holding company whose headquarters are located in Mishawaka, Indiana. Its sole operating subsidiary, St. Joseph Capital Bank, provides a broad array of banking services to businesses and individuals in the Michiana area. St. Joseph Capital Bank employs numerous delivery channels for their financial services including a unique courier service and electronic banking accessed via their website, http://www.sjcb.com/ . St. Joseph Capital Bank is a member of the Federal Deposit Insurance Corporation. SPECIAL NOTE CONCERNING FORWARD-LOOKING STATEMENTS This document contains, and future oral and written statements of the Company and its management may contain, forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 with respect to the financial condition, results of operations, plans, objectives, future performance and business of the Company. Forward-looking statements, which may be based upon beliefs, expectations and assumptions of the Company's management and on information currently available to management, are generally identifiable by the use of words such as "believe," "expect," "anticipate," "plan," "intend," "estimate," "may," "will," "would," "could," "should" or other similar expressions. Additionally, all statements in this document, including forward-looking statements, speak only as of the date they are made, and the Company undertakes no obligation to update any statement in light of new information or future events. A number of factors, many of which are beyond the ability of the Company to control or predict, could cause actual results to differ materially from those in its forward-looking statements. These factors include, among others, the following: (i) the strength of the local and national economy; (ii) the economic impact of terrorist threats or actions; (iii) changes in state and federal laws, regulations and governmental policies concerning the Company's general business; (iv) changes in interest rates and prepayment rates of the Company's assets; (v) increased competition in the financial services sector and the inability to attract new customers; (vi) changes in technology and the ability to develop and maintain secure and reliable electronic systems; (vii) the loss of key executives or employees; (viii) changes in consumer spending; (ix) unexpected results of acquisitions; (x) unexpected outcomes of existing or new litigation involving the Company; and (xi) changes in accounting policies and practices. These risks and uncertainties should be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements. Additional information concerning the Company and its business, including additional factors that could materially affect the Company's financial results, is included in the Company's filings with the Securities and Exchange Commission. ST. JOSEPH CAPITAL CORPORATION Consolidated Statement of Operations (Unaudited) (dollars in thousands - except per share data) Three Months Ended Twelve Months Ended December 31, December 31, December 31, December 31, 2003 2002 2003 2002 Interest and dividend income Loans, including fees $2,879 $2,729 $11,266 $10,231 Securities 279 467 1,428 1,933 3,158 3,196 12,694 12,164 Interest expense Deposits 476 703 2,149 2,932 Federal funds purchased 8 - 70 - Securities sold under agreements to repurchase and other borrowings 568 552 2,151 1,980 Net interest income 2,106 1,941 8,324 7,252 Provision for loan losses 94 320 327 716 Net interest income after provision for loan losses 2,012 1,621 7,997 6,536 Noninterest income 224 397 733 866 Noninterest expense Employee compensation and benefits 920 805 3,561 3,089 Stock options expense 22 - 67 - Severance - - 341 - Occupancy and equipment expense 118 87 417 411 Other expense 366 362 1,476 1,246 1,426 1,254 5,862 4,746 Income before income taxes 810 764 2,868 2,656 Income tax expense 295 280 1,044 973 Net income $515 $484 $1,824 $1,683 Basic income per common share $.30 $.29 $1.08 $1.00 Diluted income per common share $.29 $.28 $1.05 $.98 ST. JOSEPH CAPITAL CORPORATION Condensed Consolidated Balance Sheets (Unaudited) (dollars in thousands - except per share data) ASSETS December 31, 2003 December 31, 2002 Total cash and cash equivalents $12,729 $20,937 Federal Funds Sold 22,700 - Securities available for sale 24,178 38,580 Federal Home Loan Bank (FHLB) stock 2,326 2,154 Loans receivable 226,291 192,084 Allowance for loan losses (3,317) (2,990) Loans receivable, net 222,974 189,094 Premises and equipment, net 1,347 1,304 Interest receivable and other assets 2,004 1,771 Total assets $288,258 $253,840 LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities Total deposits $207,283 $177,674 Securities sold under agreements to repurchase & other borrowings 6,484 10,280 FHLB Advances 46,520 43,070 Interest payable and other liabilities 736 675 Guaranteed preferred beneficial interest in the Corporation's subordinated debentures 3,000 - Total liabilities 264,023 231,699 Total shareholders' equity 24,235 22,141 Total liabilities and shareholders' equity $288,258 $253,840 Contacts: John Rosenthal 574-273-9700 Mark Secor 800-890-2798 Fax: 574-243-9674 E-mail: DATASOURCE: St. Joseph Capital Corporation CONTACT: John Rosenthal, +1-574-273-9700, E-mail: , or Mark Secor, +1-800-890-2798, E-mail: , or Fax: +1-574-243-9674, both of St. Joseph Capital Corporation Web site: http://www.sjcb.com/

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