Peoples Bancorp : Reports Earnings17-Jan-2012

17-Jan-2012

For Immediate Release

OTCQB Symbol:PBNI

Contact:Maurice F. Winkler, IIIPhone:    [phone]

Auburn, Indiana - January 17, 2012 - Peoples Bancorp reported net income for the first quarter ended December 31, 2011, of $835,593 versus the same quarter last year income of $893,115. First quarter earnings were $0.34 per share compared to $0.36 per share for the same period one year ago.

Maurice F. Winkler, President of Peoples Bancorp, indicated "The effects of margin compression were partially offset by the reduction in the allowance for loan losses recorded during the quarter. Last year's expense of $525,000 decreased to $175,000 this year. The environment we continue to operate in will keep the pressure on the net interest margin and the growth of regulations will also continue to present challenges as we move forward. Non-interest income declined largely because of the decrease in gains recorded from selling investment securities and, to a lesser degree, loans. We experienced increases in all other phases of non-interest income compared to the same quarter one year ago. Although the Company experienced significant increases in both health insurance and pension costs, total non-interest expenses declined slightly when compared to the same quarter a year ago, as well as, the previous quarter."

Peoples reported assets on December 31, 2011, of $484,857,087, an increase of $4.3 million from September 30, 2011. Peoples' deposit balances increased during the quarter ended December 31, 2011 $3.6 million to $357,384,115. The Company's borrowings increased during the quarter by $1.1 million to $60,718,881.

Peoples had 2,422,531 shares of stock outstanding as of December 31, 2011, and the closing price of Peoples Bancorp stock as of January 16, 2012, was $16.25 per share as listed on the OTCQB System under the symbol PBNI. At December 31, 2011, Peoples had stockholders equity of $61,726,024, a capital to assets ratio of 12.73%, and a book value of $25.48. 

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
			December 31,		September 30,		December 31,
			2011		2011		2010
Balance Sheet Data:
	Total assets		$484,857,087		$480,583,263		$463,883,979
	Loans receivable including loans
		held for sale, net	224,820,017		222,251,918		242,207,928
	Investment securities		219,666,850		215,244,151		181,984,112
	Other interest earning assets		6,709,333		11,510,214		8,649,377
	Deposits		357,384,115		353,810,967		340,179,778
	Borrowed Funds		62,076,077		61,022,847		63,935,698
	Stockholder's equity		61,726,024		61,618,201		57,666,786
	Non-performing loans and REO		1,981,000		1,921,000		2,627,000
	Equity to assets ratio		12.73%		12.82%		12.43%
	Book value per share		$25.48		$25.12		$23.23
			Three Months Ended
			December 31,
			2011		2010
Operating Data:
	Interest income		$4,618,557		$5,066,684
	Interest expense		1,446,916		1,748,860
	Net interest income		$3,171,641		$3,317,824
	Provision
		for losses on loans	175,000		525,000
	Net interest income after provision
		for losses on loans	$2,996,641		$2,792,824
	Other income		960,372		1,289,756
	Other expenses		3,012,421		3,019,488
	Income before income taxes		944,592		1,063,092
	Income tax expense		108,999		169,977
	Net income		$835,593		$893,115
	Basic income per common share		$0.34		$0.36
	Diluted income per common share		$0.34		$0.36
	Dividends per common share		$0.20		$0.19
Other Data:
	Average yield
		on all interest-earning assets	4.03%		4.55%
	Average cost
		of all interest-bearing liabilities	1.43%		1.79%
	Interest rate spread		2.60%		2.76%
	Net interest margin		2.77%		2.98%
	Return on assets (net income divided
		by average total assets)	0.69%		0.76%
	Return on equity (net income divided
		by average total equity)	5.41%		6.05%
	Dividend payout ratio (dividends per
		common share divided by net
		income per common share)	58.82%		52.78%