PEOPLES BANCORP 
By Auburn, Indiana - July 18, 2013 - Peoples Bancorp 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% | |||||
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