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Peoples Bancorp Reports 18% gain in Fiscal 2011 Earnings

04-Nov-2011

 

For Immediate Release                  

Pink Sheets Symbol:    PBNI
Contact:                           Maurice F. Winkler, III
Phone:                             260-925-2500

 

 

 

Peoples Bancorp Reports 18% gain in Fiscal 2011 Earnings

 

 

AUBURN, INDIANA (November 3, 2011)-Peoples Bancorp reported net income for the fiscal year ended September 30, 2011, increased to $3,770,296 versus the previous year’s income of $3,290,544. Fiscal 2011 earnings per diluted share were $1.52 per share compared to $1.28 per share for the year ended September 30, 2010, an 18.75% increase.

 

Maurice F Winkler, III, President of Peoples Bancorp, stated “2011 marked the fourth consecutive year of an increase in earnings per share. We are very pleased with our performance during what has continued to be difficult times for the national economy, the local economy and for the banking industry as a whole.

 

We were able to overcome the ongoing compression in net interest margin by increasing non-interest income and decreasing the provision for loan losses. Led by a $625,406 increase in gains from the sale of securities, nearly all areas of non-interest income increased when compared to the previous year. Fees and service charges increased by more than 16%.   Management recognizes that any increase in market interest rates will make the security gains difficult to duplicate. Salaries and benefits expense increased as a result of a 21% increase in the cost of providing health insurance benefits to our valued employees. A change in the method used for calculating deposit insurance premiums by the FDIC helped to decrease that expense by 27%. The increase in taxable income also increased the company’s tax provision for the year by nearly 44%.”

 

On September 30, 2011, stockholders equity was $61,618,203 with a capital to assets ratio of 12.82% and a book value of $25.12.  Peoples had 2,453,347 shares of stock outstanding as of September 30, 2011.  The closing price of Peoples Bancorp stock as of November 2, 2011, was $16.51 per share as quoted on the Pink Sheets 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

2011

2010

2009

Balance Sheet Data:

Total assets

$480,782,671

$472,522,994

$487,841,727

Loans receivable including loans

held for sale, net

222,252,044

251,003,932

278,882,213

Investments and other interest

earning assets

226,754,366

193,715,510

181,137,188

Deposits

353,992,745

338,792,106

334,713,820

Borrowed funds

61,022,847

69,743,961

88,505,599

Stockholder's equity

61,618,203

60,213,402

60,870,740

Non-performing loans and REO

1,921,000

2,406,000

3,843,000

For Year Ended September 30

2011

2010

2009

Operating Data:

Interest income

$19,703,047

$21,687,996

$23,697,872

Interest expense

6,468,945

8,417,974

9,965,072

Net interest income

$13,234,102

$13,270,022

$13,732,800

Provision

for losses on loans

760,000

1,041,874

733,257

Net interest income after provision

for losses on loans

$12,474,102

$12,228,148

$12,999,543

Other income

4,131,311

3,399,917

3,282,754

Other expenses

12,105,694

11,830,544

12,456,748

Income before income taxes

4,499,719

3,797,521

3,825,549

Income tax expense

729,423

506,977

704,466

Net income

$3,770,296

$3,290,544

$3,121,083

Basic income per common share

$1.52

$1.28

$1.14

Diluted income per common share

$1.52

$1.28

$1.14

Dividends per common share

$0.76

$0.76

$0.76

Other Data:

Average yield

on all interest-earning assets

4.41%

4.81%

5.33%

Average cost

of all interest-bearing liabilities

1.64%

2.12%

2.54%

Interest rate spread

2.77%

2.69%

2.79%

Net interest margin

2.77%

2.94%

3.09%

Number of full service banking offices

15

15

15

Return on assets (net income divided

by average total assets)

0.79%

0.69%

0.66%

Return on equity (net income divided

by average total equity)

6.27%

5.47%

5.24%

Dividend payout ratio (dividends per

common share divided by net

income per common share)

50.00%

59.38%

66.67%

Equity to assets ratio (average total equity

divided by average total assets)

12.65%

12.59%

12.65%