AUBURN, Ind., Nov. 9, 2012 (GLOBE NEWSWIRE) -- Peoples Bancorp (OTCQB:PBNI) 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% |