Peoples Bancorp Reports Quarterly Earnings

AUBURN, Ind., Jan. 27, 2015 (GLOBE NEWSWIRE) -- Peoples Bancorp (OTCQB:PBNI) reported net income for the first quarter ended December 31, 2014, of $818,063 versus the same quarter last year income of $760,012. First quarter earnings were $0.35 per share compared to $0.33 per share for the same period one year ago.

Maurice F. Winkler, President of Peoples Bancorp, indicated "Gains taken from the sale of securities in the investment portfolio were the primary factor in this quarter's results. We have also seen significant growth in the balance of assets managed by our Trust department leading to growth of 30% in fiduciary income. The continuing low interest rate environment caused a significant decline in net interest margin during the quarter, which offset most of the increase in non-interest income. Loans and investment securities continue to re-price to lower rates faster than the deposits and borrowings used to fund them. Net interest margin declined by 28 basis points to 2.61% compared to the same quarter last year. The Company saw non-interest expense grow compared to last year, largely due to costs associated with the write-down and management of real estate owned. Recently, the Company decided to start offering investment advisory services to our current and potential customers. In December, Drew Baker was hired and has hit the ground running to get that new line of business going."

Peoples reported assets on December 31, 2014, of $486,555,175, an increase of $15.4 million from September 30, 2014. Peoples' deposit balances increased during the quarter ended December 31, 2014 by $14.8 million to $368,702,147. The Company's borrowings increased during the quarter by $191,000 to $52,676,407.

Peoples had 2,311,858 shares of stock outstanding as of December 31, 2014, and the closing price of Peoples Bancorp stock as of January 26, 2015, was $24.50 per share as listed on the OTCQB System under the symbol PBNI. At December 31, 2014, Peoples had stockholders equity of $61,324,510, a capital to assets ratio of 12.60%, and a book value of $26.53.

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

December 31, September 30, December 31,
2014 2014 2013
Balance Sheet Data:
Total assets $486,555,175 $471,184,008 $464,508,305
Loans receivable including loans
held for sale, net 233,171,409 229,144,878 233,097,436
Investment securities 180,251,469 181,749,053 186,362,964
Other interest earning assets 35,797,659 30,443,184 13,428,901
Deposits 368,702,147 353,920,254 354,013,186
Borrowed Funds 52,676,407 52,867,522 49,612,617
Stockholder's equity 61,324,510 60,764,630 58,339,818
Non-performing loans and REO 732,000 788,000 1,061,000
Equity to assets ratio 12.60% 12.90% 12.52%
Book value per share $26.53 $26.28 $25.21
Three Months Ended
December 31,
2014 2013
Operating Data:
Interest income $3,729,025 $3,893,597
Interest expense 753,526 765,080
Net interest income $2,975,499 $3,128,517
for losses on loans 30,000 40,000
Net interest income after provision
for losses on loans $2,945,499 $3,088,517
Other income 992,430 690,698
Other expenses 2,980,323 2,919,691
Income before income taxes 957,606 859,524
Income tax expense 139,543 99,512
Net income $818,063 $760,012
Basic income per common share $0.35 $0.33
Diluted income per common share $0.35 $0.33
Dividends per common share $0.20 $0.20
Other Data:
Average yield
on all interest-earning assets 3.28% 3.60%
Average cost
of all interest-bearing liabilities 0.76% 0.82%
Interest rate spread 2.52% 2.78%
Net interest margin 2.61% 2.89%
Return on assets (net income divided
by average total assets) 0.67% 0.66%
Return on equity (net income divided
by average total equity) 5.29% 5.13%
Dividend payout ratio (dividends per
common share divided by net
income per common share) 57.14% 60.61%

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