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Peoples Bancorp Reports Fiscal 2012 Earnings Nov 09, 2012

09-Nov-2012

 

For Immediate Release

OTCQB Symbol:  PBNI

Contact:     Maurice F. Winkler, III

Phone:        260-925-2500

 

 

 

Peoples Bancorp Reports Fiscal 2012 Earnings

 

 

AUBURN, INDIANA (November 9, 2012)-Peoples Bancorp reported net income for the fiscal year ended September 30, 2012, was $3,043,656 versus the previous year’s income of $3,770,296. Fiscal 2012 earnings per diluted share were $1.26 per share compared to $1.52 per share for the year ended September 30, 2011.

 

Maurice F Winkler, III, President of Peoples Bancorp, stated “Although 2012 was the first year in several years that we did not increase earnings, there were positives for the year. Loan balances have stabilized and have even increased slightly. Deposit balances continue to grow. Non-performing loans and real estate owned balances have decreased. The extended period of historically low interest rates, during what has continued to be difficult times for the national economy and local economy, has increased the downward pressure on banking industry earnings as a whole.”

 

The low interest rate environment was evident in contributing to the ongoing compression in net interest margin. Lower net interest income and non-interest income was partially offset by lower loan loss provisions and lower non-interest expenses. Non-interest income was down $805,000  compared to last year because the company recognized fewer gains by selling loans and investment securities. That was partially offset by an increase of $297,000 in fee and service charge income. The cost of insurance premiums by the FDIC decreased by 26% and the costs associated with managing and maintaining real estate owned decreased 52% or $117,000. A significant factor contributing to the results for fiscal 2012 was the decrease in the company’s tax provision for the year by 63% because tax exempt income has become a larger portion of the company’s total income.  

 

On September 30, 2012, stockholders equity was $63,253,783 with a capital to assets ratio of 13.06% and a book value of $26.37.  Peoples had 2,398,493 shares of stock outstanding as of September 30, 2012.  The closing price of Peoples Bancorp stock as of November 8, 2012, was $19.25 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

2012

2011

2010

Balance Sheet Data:

Total assets

$484,490,237

$480,583,263

$472,522,994

Loans receivable including loans

held for sale, net

222,305,325

222,251,918

251,003,932

Investments and other interest

earning assets

226,841,796

226,754,365

193,715,510

Deposits

359,513,626

353,810,967

338,792,106

Borrowed funds

56,746,457

61,022,847

69,743,961

Stockholder's equity

63,253,783

61,618,201

60,213,402

Non-performing loans and REO

1,448,000

1,921,000

2,406,000

For Year Ended September 30

2012

2011

2010

Operating Data:

Interest income

$17,514,487

$19,703,047

$21,687,996

Interest expense

5,446,753

6,468,946

8,417,974

Net interest income

$12,067,734

$13,234,101

$13,270,022

Provision

for losses on loans

400,000

768,501

1,041,874

Net interest income after provision

for losses on loans

$11,667,734

$12,465,600

$12,228,148

Other income

3,634,997

4,131,312

3,399,917

Other expenses

11,990,529

12,097,194

11,830,544

Income before income taxes

3,312,202

4,499,718

3,797,521

Income tax expense

268,546

729,423

506,977

Net income

$3,043,656

$3,770,295

$3,290,544

Basic income per common share

$1.26

$1.52

$1.28

Diluted income per common share

$1.26

$1.52

$1.28

Dividends per common share

$0.80

$0.76

$0.76

Other Data:

Average yield

on all interest-earning assets

3.85%

4.41%

4.81%

Average cost

of all interest-bearing liabilities

1.37%

1.64%

2.12%

Interest rate spread

2.48%

2.77%

2.69%

Net interest margin

2.65%

2.96%

2.94%

Number of full service banking offices

15

15

15

Return on assets (net income divided

by average total assets)

0.63%

0.79%

0.69%

Return on equity (net income divided

by average total equity)

4.85%

6.27%

5.47%

Dividend payout ratio (dividends per

common share divided by net

income per common share)

63.49%

50.00%

59.38%

Equity to assets ratio (average total equity

divided by average total assets)

12.92%

12.65%

12.59%