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Peoples Bancorp Reports Fiscal 2012 Earnings

AUBURN, Ind., Nov. 9, 2012 (GLOBE NEWSWIRE) -- Peoples Bancorp (OTCQB:PBNI) reported net income for the fiscal year ended September 30, 2012, was $3,043,656 versus the previous year's income of $3,770,296. Fiscal 2012 earnings per diluted share were $1.26 per share compared to $1.52 per share for the year ended September 30, 2011.

Maurice F Winkler, III, President of Peoples Bancorp, stated "Although 2012 was the first year in several years that we did not increase earnings, there were positives for the year. Loan balances have stabilized and have even increased slightly. Deposit balances continue to grow. Non-performing loans and real estate owned balances have decreased. The extended period of historically low interest rates, during what has continued to be difficult times for the national economy and local economy, has increased the downward pressure on banking industry earnings as a whole."

The low interest rate environment was evident in contributing to the ongoing compression in net interest margin. Lower net interest income and non-interest income was partially offset by lower loan loss provisions and lower non-interest expenses. Non-interest income was down $805,000 compared to last year because the company recognized fewer gains by selling loans and investment securities. That was partially offset by an increase of $297,000 in fee and service charge income. The cost of insurance premiums by the FDIC decreased by 26% and the costs associated with managing and maintaining real estate owned decreased 52% or $117,000. A significant factor contributing to the results for fiscal 2012 was the decrease in the company's tax provision for the year by 63% because tax exempt income has become a larger portion of the company's total income.

On September 30, 2012, stockholders equity was $63,253,783 with a capital to assets ratio of 13.06% and a book value of $26.37. Peoples had 2,398,493 shares of stock outstanding as of September 30, 2012. The closing price of Peoples Bancorp stock as of November 8, 2012, was $19.25 per share as quoted on the OTCQB System under the symbol PBNI.

Peoples Bancorp, through its subsidiary, Peoples Federal Savings Bank, operates fifteen full-service offices located in Auburn, Avilla, LaGrange, Garrett, Howe, Kendallville, Middlebury, Waterloo, Topeka, 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
2012 2011 2010
Balance Sheet Data:
Total assets $484,490,237 $480,583,263 $472,522,994
Loans receivable including loans held for sale, net 222,305,325 222,251,918 251,003,932
Investments and other interest earning assets 226,841,796 226,754,365 193,715,510
Deposits 359,513,626 353,810,967 338,792,106
Borrowed funds 56,746,457 61,022,847 69,743,961
Stockholder's equity 63,253,783 61,618,201 60,213,402
Non-performing loans and REO 1,448,000 1,921,000 2,406,000
For Year Ended September 30
2012 2011 2010
Operating Data:
Interest income $17,514,487 $19,703,047 $21,687,996
Interest expense 5,446,753 6,468,946 8,417,974
Net interest income $12,067,734 $13,234,101 $13,270,022
Provision for losses on loans 400,000 768,501 1,041,874
Net interest income after provision for losses on loans $11,667,734 $12,465,600 $12,228,148
Other income 3,634,997 4,131,312 3,399,917
Other expenses 11,990,529 12,097,194 11,830,544
Income before income taxes 3,312,202 4,499,718 3,797,521
Income tax expense 268,546 729,423 506,977
Net income $3,043,656 $3,770,295 $3,290,544
Basic income per common share $1.26 $1.52 $1.28
Diluted income per common share $1.26 $1.52 $1.28
Dividends per common share $0.80 $0.76 $0.76
Other Data:
Average yield on all interest-earning assets 3.85% 4.41% 4.81%
Average cost of all interest-bearing liabilities 1.37% 1.64% 2.12%
Interest rate spread 2.48% 2.77% 2.69%
Net interest margin 2.65% 2.96% 2.94%
Number of full service banking offices 15 15 15
Return on assets (net income divided by average total assets) 0.63% 0.79% 0.69%
Return on equity (net income divided by average total equity) 4.85% 6.27% 5.47%
Dividend payout ratio (dividends per common share divided by net income per common share) 63.49% 50.00% 59.38%
Equity to assets ratio (average total equity divided by average total assets) 12.92% 12.65% 12.59%
CONTACT: Maurice F. Winkler, III 260-925-2500Source:Peoples Bancorp