Peoples Bancorp : Reports Fiscal 2013 Earnings07-Nov-2013

07-Nov-2013

For Immediate Release

OTCQBSymbol:      PBNI
Contact:                      Maurice F. Winkler, III
Phone:                              260-925-2500

AUBURN, INDIANA, November 7, 2013-Peoples Bancorp (OTCQB:PBNI) reported net income for the fiscal year ended September 30, 2013, was $2,626,794 versus the previous year's income of $3,043,656. Fiscal 2013 earnings per diluted share were $1.11 per share compared to $1.26 per share for the year ended September 30, 2012.

Maurice F Winkler, III, President of Peoples Bancorp, stated "The ongoing low interest rate period has continued to present challenges for the company. Although 2013 earnings are lower than 2012, we are encouraged by our loan portfolio growth. Net interest margin was flat for the year compared to last year, however, net interest margin increased by 21 basis points in the last quarter of the year. The balances of non-performing loans and real estate owned have continued to decline and the delinquency rates on loans at the bank are much lower than the average for the peer group."

"During the year, the bank prepaid several Federal Home Loan Bank advances resulting in $872,000 in prepayment penalties. The Company also had a $474,000 or 47% increase in the cost of providing health insurance to our employees due to an increase in claims activity. Non-interest expenses would have declined without those items. Non-interest income increased $567,000 led by gains on the sale of investment securities of $1.1 million which was an increase of $538,000 from the year before. Continued improvement in asset quality resulted in a lower provision for loan losses compared to the previous year. Provision expense declined by $173,000."  

On September 30, 2013, stockholders equity was $58,292,472 with a capital to assets ratio of 12.88% and a book value of $25.19.  Peoples had 2,314,288 shares of stock outstanding as of September 30, 2013.  The closing price of Peoples Bancorp stock as of November 6, 2013, was $23.50 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 2013 2012 2011 Balance Sheet Data: Total assets $452,518,512 $484,309,302 $480,583,263 Loans receivable including loans held for sale, net 228,363,176 222,302,227 222,251,918 Investments and other interest earning assets 192,544,393 226,841,796 226,754,365 Deposits 349,795,781 359,359,011 353,810,967 Borrowed funds 41,677,493 56,746,457 61,022,847 Stockholder's equity 58,292,472 63,253,783 61,618,201 Non-performing loans and REO 1,066,000 1,448,000 1,921,000 For Year Ended September 30 2013 2012 2011 Operating Data: Interest income $15,369,548 $17,514,489 $19,703,047 Interest expense 3,708,772 5,446,755 6,468,946 Net interest income $11,660,776 $12,067,734 $13,234,101 Provision for losses on loans 250,000 423,000 768,501 Net interest income after provision for losses on loans $11,410,776 $11,644,734 $12,465,600 Other income 4,202,039 3,634,995 4,131,312 Other expenses 12,834,745 11,967,527 12,097,194 Income before income taxes 2,778,070 3,312,202 4,499,718 Income tax expense 151,276 268,546 729,423 Net income $2,626,794 $3,043,656 $3,770,295 Basic income per common share $1.11 $1.26 $1.52 Diluted income per common share $1.11 $1.26 $1.52 Dividends per common share $0.80 $0.80 $0.76 Other Data: Average yield on all interest-earning assets 3.50% 3.85% 4.41% Average cost of all interest-bearing liabilities 0.98% 1.37% 1.64% Interest rate spread 2.52% 2.48% 2.77% Net interest margin 2.66% 2.65% 2.96% Number of full service banking offices 15 15 15 Return on assets (net income divided by average total assets) 0.56% 0.63% 0.79% Return on equity (net income divided by average total equity) 4.24% 4.85% 6.27% Dividend payout ratio (dividends per common share divided by net income per common share) 72.07% 63.49% 50.00% Equity to assets ratio (average total equity divided by average total assets) 13.21% 12.92% 12.65%

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