Peoples Bancorp Reports Earnings - January 15, 2010

Pink Sheets Symbol:  PBNI
Contact:                               Maurice F. Winkler, III

Phone:                                  260-925-2500 

Peoples Bancorp Reports Earnings

Auburn, Indiana - January 15, 2010 - Peoples Bancorp reported net income for the first quarter ended December 31, 2009, of $843,614 versus the same quarter last year income of $902,158. First quarter earnings per share was $0.32 per share compared to $0.32 per share for the same period one year ago.

Maurice F. Winkler, President of Peoples Bancorp indicated, “Compared to the same quarter a year ago, we experienced significant compression in our net interest margin and our non-interest expenses increased, mainly as a result of the increase in FDIC premiums. Those premiums increased 124% from a year ago. Additionally, we felt it was prudent, in what seems to be improving but still uncertain economic times, to continue to build our loan loss provision. Our provision expense increased $271,862 or 174% from the same quarter one year earlier. However, we were able to achieve significant increases in non-interest income, in the way of gains on the sale of loans and securities, to nearly cover those higher expenses. Our income tax expense decreased because of our investments in tax exempt assets made since the first  quarter a year ago. On a per share basis, we were able to equal the results from the same quarter one year ago.”

Peoples reported assets on December 31, 2009, of $485,311,975 a decrease of $2.5 million from September 30, 2009. Peoples’ deposit balances increased during the quarter ended December 31, 2009 $8.3 million to $343,037,036. The Company’s borrowings decreased during the quarter by $7.3 million to $81,163,552.

Peoples had 2,571,577 shares of stock outstanding as of December 31, 2009, and the closing price of Peoples Bancorp stock as of January 14, 2010, was $13.50 per share as listed on the Pink Sheets OTC Markets under the symbol PBNI. At December 31, 2009, Peoples had stockholders equity of $58,552,411, a capital to assets ratio of 12.06%, and a book value of $22.77. 

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.