Peoples Bancorp : Reports Fiscal 2012 Earnings09-Nov-2012

09-Nov-2012

For Immediate Release

OTCQBSymbol:   PBNI

Contact:      Maurice F. Winkler, III

Phone:        [phone]

AUBURN, INDIANA (November 9, 2012)-Peoples Bancorp 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%

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