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Peoples Bancorp Reports 29% Increase in Net Income

AUBURN, Ind., Nov. 25, 2014 (GLOBE NEWSWIRE) -- Peoples Bancorp (OTCQB:PBNI) reported net income for the fiscal year ended September 30, 2014, was $3,404,323 versus the previous year's income of $2,626,795. Fiscal 2014 earnings per diluted share were $1.47 per share compared to $1.11 per share for the year ended September 30, 2013.

Maurice F Winkler, III, President of Peoples Bancorp, stated "The increase in earnings, for the year ended September 30, 2014, was largely a result of increased net interest income. The growth in interest income from the investment portfolio and the continued decline in the cost of certificates of deposit was able to make up for the continued decline in interest earned on the loan portfolio, and contribute to a 20 basis point increase in net interest margin compared to last year. The change in net interest margin for the fourth quarter, however, was flat compared to the same quarter last year. For the second consecutive year, we were able to see growth in the balance of loans outstanding. We have also continued to see improvement in the quality of our loan portfolio. Total past due loans as of September 30, 2014 were only 0.32% of outstanding balances. That is a number that compares very well to any peer group."

"The company also showed a significant decline in non-interest expenses during the recently completed year. In fiscal 2013 the company prepaid several Federal Home Loan Bank advances resulting in $872,000 in prepayment penalties compared to zero for fiscal 2014. Additionally, we experienced lower health insurance claims by the participants in our health insurance plan. Non-interest income decreased mainly due to fewer gains recognized from the sale of investment securities. The change in the mix of our taxable earnings contributed to the $334,000 increase in tax provision expense. Most of that was related to the increased earnings on mortgage backed securities because of slower prepayment speeds. We also opened our 16th full service office in Woodburn, IN during the year."

On September 30, 2014, stockholders equity was $60,764,630 with a capital to assets ratio of 12.90% and a book value of $26.28. Peoples had 2,311,858 shares of stock outstanding as of September 30, 2014. The closing price of Peoples Bancorp stock as of November 24, 2014, was $23.65 per share as quoted on the OTCQB System under the symbol PBNI.

Peoples Bancorp, through its subsidiary, Peoples Federal Savings Bank, operates sixteen full-service offices located in Auburn, Avilla, LaGrange, Garrett, Howe, Kendallville, Middlebury, Waterloo, Topeka, Woodburn and Columbia City (two offices), in Indiana, and Three Rivers (two offices), Schoolcraft, and Union in Michigan.

SELECTED CONSOLIDATED FINANCIAL DATA OF PEOPLES BANCORP
September 30
2014 2013 2012
Balance Sheet Data:
Total assets $471,184,008 $450,760,405 $484,309,302
Loans receivable including loans held for sale, net 229,144,878 228,360,874 222,302,227
Investments and other interest earning assets 207,064,534 192,553,394 226,841,796
Deposits 353,920,254 349,677,821 359,359,011
Borrowed funds 52,867,522 40,061,234 56,746,457
Stockholder's equity 60,764,630 58,282,473 63,253,783
Non-performing loans and REO 788,000 1,066,000 1,448,000
For Year Ended September 30
2014 2013 2012
Operating Data:
Interest income $15,478,204 $15,369,552 $17,514,489
Interest expense 3,018,748 3,708,773 5,446,755
Net interest income $12,459,456 $11,660,779 $12,067,734
Provision for losses on loans 385,250 263,750 423,000
Net interest income after provision for losses on loans $12,074,206 $11,397,029 $11,644,734
Other income 3,650,525 4,202,038 3,634,995
Other expenses 11,834,882 12,820,996 11,967,527
Income before income taxes 3,889,849 2,778,071 3,312,202
Income tax expense 485,526 151,276 268,546
Net income $3,404,323 $2,626,795 $3,043,656
Basic income per common share $1.47 $1.11 $1.26
Diluted income per common share $1.47 $1.11 $1.26
Dividends per common share $0.80 $0.80 $0.80
Other Data:
Average yield on all interest-earning assets 3.56% 3.50% 3.85%
Average cost of all interest-bearing liabilities 0.80% 0.98% 1.37%
Interest rate spread 2.76% 2.52% 2.48%
Net interest margin 2.86% 2.66% 2.65%
Number of full service banking offices 16 15 15
Return on assets (net income divided by average total assets) 0.73% 0.56% 0.63%
Return on equity (net income divided by average total equity) 5.67% 4.24% 4.85%
Dividend payout ratio (dividends per common share divided by net income per common share) 54.42% 72.07% 63.49%
Equity to assets ratio (average total equity divided by average total assets) 12.90% 13.21% 12.92%

CONTACT: Maurice F. Winkler, III Phone: 260-925-2500Source:Peoples Bancorp