PEOPLES BANCORP 
By For Immediate Release
OTCQB Symbol:PBNI
Contact:Maurice F. Winkler,
III
Phone:
260-925-2500
Auburn, Indiana - April 18, 2012 - Peoples Bancorp reported net income for the second quarter ended March 31, 2012, of $687,335 versus the same quarter last year income of $846,986. Second quarter earnings were $0.28 per share compared to $0.34 per share for the same period one year ago.
Maurice F. Winkler, President of Peoples Bancorp, indicated "Margin compression continues to have an impact on the company's results. Net interest margin decreased 28 basis points from the same quarter a year ago to 2.71%. The extremely low interest rate environment that we have been, and are currently still in, will likely continue that trend. The increase in non-interest expenses came mostly from the increase in compensation and benefit costs. The bank's balance of non-performing loans and real estate owned has been trending in a positive direction. At $1.9 million the balance is $721,000 less than at this time last year. The company's tax exempt investments in municipal securities and bank owned life insurance have minimized the bank's tax expense."
Peoples reported assets on March 31, 2012, of $490,983,771, an increase of $10.4 million from September 30, 2011. Peoples' deposit balances increased $13.0 million during the six month period ending March 31, 2012 to $366,827,858. The Company's borrowings decreased by $2.9 million to $58,102,783 during that same period.
Peoples had 2,413,051 shares of stock outstanding as of March 31, 2012, and the closing price of Peoples Bancorp stock as of April 17, 2012, was $17.85 per share as listed on the OTCQB System under the symbol PBNI. At March 31, 2012, Peoples had stockholders equity of $61,920,640, a capital to assets ratio of 12.61%, and a book value of $25.66.
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 | |||||||||
March 31, | September 30, | March 31, | |||||||
2012 | 2011 | 2011 | |||||||
Balance Sheet Data: | |||||||||
Total assets | $490,983,771 | $480,583,263 | $475,628,156 | ||||||
Loans receivable including loans | |||||||||
held for sale, net | 214,838,678 | 222,251,918 | 227,237,660 | ||||||
Investment securities | 225,958,144 | 215,244,151 | 212,151,749 | ||||||
Other interest earning assets | 16,412,893 | 11,510,214 | 7,288,324 | ||||||
Deposits | 366,827,858 | 353,810,967 | 350,728,837 | ||||||
Borrowed Funds | 58,102,783 | 61,022,847 | 63,728,569 | ||||||
Stockholder's equity | 61,920,640 | 61,618,201 | 58,716,446 | ||||||
Non-performing loans and REO | 1,896,000 | 1,921,000 | 2,617,000 | ||||||
Equity to assets ratio | 12.61% | 12.82% | 12.35% | ||||||
Book value per share | $25.66 | $25.12 | $23.66 | ||||||
Three Months Ended | Six Months Ended | ||||||||
March 31, | March 31, | ||||||||
2012 | 2011 | 2012 | 2011 | ||||||
Operating Data: | |||||||||
Interest income | $4,419,177 | $4,804,125 | $9,037,734 | $9,870,810 | |||||
Interest expense | 1,359,225 | 1,572,116 | 2,806,141 | 3,320,977 | |||||
Net interest income | $3,059,952 | $3,232,009 | $6,231,593 | $6,549,833 | |||||
Provision | |||||||||
for losses on loans | 75,000 | 65,000 | 250,000 | 590,000 | |||||
Net interest income after provision | |||||||||
for losses on loans | $2,984,952 | $3,167,009 | $5,981,593 | $5,959,833 | |||||
Non-Interest income | 811,399 | 842,443 | 1,771,772 | 2,132,199 | |||||
Non-Interest expenses | 3,095,680 | 3,026,219 | 6,108,101 | 6,045,707 | |||||
Income before income taxes | 700,671 | 983,233 | 1,645,264 | 2,046,325 | |||||
Income tax expense | 13,336 | 136,247 | 122,336 | 306,224 | |||||
Net income | $687,335 | $846,986 | $1,522,928 | $1,740,101 | |||||
Basic income per common share | $0.28 | $0.34 | $0.63 | $0.70 | |||||
Diluted income per common share | $0.28 | $0.34 | $0.63 | $0.70 | |||||
Dividends per common share | $0.20 | $0.19 | $0.40 | $0.38 | |||||
Other Data: | |||||||||
Average yield | |||||||||
on all interest-earning assets | 3.92% | 4.44% | 3.98% | 4.50% | |||||
Average cost | |||||||||
of all interest-bearing liabilities | 1.38% | 1.64% | 1.41% | 1.71% | |||||
Interest rate spread | 2.54% | 2.80% | 2.57% | 2.79% | |||||
Net interest margin | 2.71% | 2.99% | 2.74% | 2.98% | |||||
Return on assets (net income divided | |||||||||
by average total assets) | 0.57% | 0.72% | 0.63% | 0.74% | |||||
Return on equity (net income divided | |||||||||
by average total equity) | 4.37% | 5.80% | 4.89% | 5.85% | |||||
Dividend payout ratio (dividends per | |||||||||
common share divided by net | |||||||||
income per common share) | 71.43% | 55.88% | 63.49% | 54.29% | |||||
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