DutchFork Bancshares, Inc. Announces Second Quarter Earnings.

Business Editors

NEWBERRY, S.C.--(BUSINESS WIRE)--May 15, 2002

DutchFork Bancshares, Inc. (NASDAQ: DFBS) announced earnings, of $457,284 for the second quarter ending March 31, 2002 compared to earnings of $1,912,412 for the second quarter of 2001.

Basic earnings per share were $.40 for the second quarter ending March 31, 2002 compared to $1.23 for the comparable period in 2001.

Net interest income after provisions for loan losses for the second quarter of 2002 was $1,723,047 compared to $1,591,508 for the same period of 2001. Total interest income was $3,410,065 for the three months ended March 31, 2002, a $454,271 decrease from the same period in 2001. Interest expense for the second quarter of 2002 was $1,687,018, a decrease of $536,810 from the same period of 2001.

Non-interest income for the second quarter of 2002 was $289,575 representing a decrease of $2,756,069 from the $3,045,644 posted in the same quarter of 2001. The decrease in non-interest income is mainly due to a decrease of $702,207 in gains on sales of securities and a $1,828,762 gain on the sale of a branch in 2001.

Non-interest expense for the quarter ending March 31, 2002 was $1,317,477 compared to $1,440,688 for the same period of 2001.

At March 31, 2002, total assets were $262,861,259 compared to $211,231,127 for the same period in 2001.

Other comprehensive income resulting from the mark-to-market of investments available for sale was $244,047 (after taxes) during the three months ended March 31, 2002, due to declining interest rates and the decrease in the market value of these investments.

DutchFork Bancshares, Inc. is the holding company for Newberry Federal Savings Bank, which operates three banking locations in Newberry County of South Carolina. The company is listed on the NASDAQ small cap exchange under the symbol "DFBS".

Income Statement Data
(Unaudited)
(Dollars in thousands)

                            Three Months Ended       Six Months Ended
                                 March 31,               March 31,
                             2002        2001        2002        2001
                             ----        ----        ----        ----
Interest income            $ 3,410     $ 3,864     $ 6,831     $ 8,054
Interest expense             1,687       2,224       3,651       4,607
Net interest income          1,723       1,641       3,180       3,447
Provision for loan losses                   41                      41
Net interest income
 after provision for loan
 losses                      1,723       1,600       3,180       3,406
Non-interest income            290       3,046       1,137       3,495
Non-interest expense         1,317       1,440       2,595       2,838
Income before taxes            696       3,204       1,722       4,064
Income tax expense             238       1,292         592       1,626
Net income                     458       1,912       1,130       2,438

Income per share (basic)    $  .40      $ 1.23     $   .99      $ 1.56
Income per share (diluted)  $  .39      $ 1.23     $   .96      $ 1.56
Return on average assets      0.18%       3.60%       0.45%       2.22%
Return on average equity      1.42%      21.57%       3.47%      14.34%
Net interest margin           2.64%       3.19%       2.29%       3.26%

Balance Sheet Data
(Dollars in thousands, except per share data)

                                      March 31,       September 30,
                                        2002              2001
                                      --------        ------------
Total assets                        $ 262,861         $ 249,832
Investment securities                 176,876           164,673
Loans                                  65,848            73,088
Allowance for loan losses                 575               241
Total deposits                        147,992           147,258
Other borrowings                       79,335            60,000
Shareholders' equity                   32,935            34,066
Equity to assets                        12.53%            13.63%
Loan to deposit ratio                   44.49%            49.63%
Non-performing loans to assets           0.01%             0.06%


Average Balances
(Unaudited)
                            Three Months Ended       Six Months Ended
                                 March 31,               March 31,
                             2002        2001        2002        2001
                             ----        ----        ----        ----
Average total assets     $ 249,141   $ 212,438   $ 250,156   $ 219,482
Average loans               66,593      68,058      70,574      75,384
Average earning assets     231,927     205,530     236,956     211,714
Average deposits           146,885     136,403     148,022     141,429
Average other short-term
 borrowings                 66,912      35,108      64,398      38,783