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Peoples Bancorp Reports Third Quarter Earnings

AUBURN, Ind., July 18, 2013 (GLOBE NEWSWIRE) -- Peoples Bancorp (OTCQB:PBNI) reported net income for the third quarter ended June 30, 2013, of $752,708 versus the same quarter last year income of $785,812. Third quarter earnings were $0.32 per share compared to $0.33 per share for the same period one year ago. Year to date, earnings per share was $0.84 for fiscal 2013 compared to $0.95 for the nine month period ending June 30, 2012.

Maurice F. Winkler, President of Peoples Bancorp, indicated "The Company experienced an increase in net interest margin compared to both the same quarter last year and the linked quarter. Net interest margin increased 18 basis points from the same quarter a year ago to 2.71%. During the quarter we did a balance sheet restructuring by selling some longer term investment securities and prepaying Federal Home Loan Bank borrowings. The prepayment penalties were responsible for the large increase in non-interest expenses. However, we were able to see immediate benefits in net interest margin that should continue going forward. The gains recognized from selling the investment securities effectively offset the increased non-interest expenses. On a year to date basis, we have seen a 15% increase in the cost of providing health insurance benefits to our employees compared to last year. The bank's balance of non-performing loans and real estate owned decreased to $1.1 million, a 24% decline since the end of the last fiscal year. This has helped in allowing us to record $115,000 less in provisions for loan losses compared to last year."

Peoples reported assets on June 30, 2013, of $465,625,926, a decrease of $18.7 million from September 30, 2012. Peoples' deposit balances decreased $2.2 million during the nine month period ending June 30, 2013 to $357,113,480. The Company's borrowings decreased by $10.0 million, to $46,730,802, during the nine month period ending June 30, 2013.

Peoples had 2,320,837 shares of stock outstanding as of June 30, 2013, and the closing price of Peoples Bancorp stock as of July 17, 2013, was $21.11 per share as listed on the OTCQB System under the symbol PBNI. At June 30, 2013, Peoples had stockholders equity of $58,922,704, a capital to assets ratio of 12.65%, and a book value of $25.39.

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

SELECTED CONSOLIDATED FINANCIAL DATA OF PEOPLES BANCORP
June 30, September 30, June 30,
2013 2012 2012
Balance Sheet Data:
Total assets $465,625,926 $484,309,302 $488,124,076
Loans receivable including loans held for sale, net 234,676,414 222,302,227 218,314,389
Investment securities 184,514,216 210,805,882 220,094,195
Other interest earning assets 13,964,692 16,035,914 10,154,361
Deposits 357,113,480 359,359,011 361,653,803
Borrowed Funds 46,730,802 56,746,457 57,722,877
Stockholder's equity 58,922,704 63,253,783 62,604,918
Non-performing loans and REO 1,099,010 1,448,000 1,568,000
Equity to assets ratio 12.65% 13.06% 12.83%
Book value per share $25.39 $26.37 $26.03
Three Months Ended Nine Months Ended
June 30, June 30,
2013 2012 2013 2012
Operating Data:
Interest income $3,756,204 $4,317,632 $11,574,563 $13,355,366
Interest expense 824,846 1,418,566 2,922,498 4,224,707
Net interest income $2,931,358 $2,899,066 $8,652,065 $9,130,659
Provision for losses on loans 60,000 75,000 210,000 325,000
Net interest income after provision for losses on loans $2,871,358 $2,824,066 $8,442,065 $8,805,659
Non-Interest income 1,856,451 1,014,308 3,493,052 2,786,079
Non-Interest expenses 3,872,160 2,967,228 9,832,211 9,075,329
Income before income taxes 855,649 871,146 2,102,906 2,516,409
Income tax expense 102,941 85,334 107,246 207,669
Net income $752,708 $785,812 $1,995,660 $2,308,740
Basic income per common share $0.32 $0.33 $0.84 $0.95
Diluted income per common share $0.32 $0.33 $0.84 $0.95
Dividends per common share $0.20 $0.20 $0.60 $0.60
Other Data:
Average yield on all interest-earning assets 3.48% 3.77% 3.54% 3.91%
Average cost of all interest-bearing liabilities 0.88% 1.43% 1.03% 1.42%
Interest rate spread 2.60% 2.34% 2.51% 2.49%
Net interest margin 2.71% 2.53% 2.64% 2.67%
Return on assets (net income divided by average total assets) 0.64% 0.64% 0.56% 0.63%
Return on equity (net income divided by average total equity) 4.86% 4.99% 4.22% 4.94%
Dividend payout ratio (dividends per common share divided by net income per common share) 62.50% 60.61% 71.43% 63.16%

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