Peoples Bancorp Reports 33% Quarterly Net Income Increase

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| Source: Peoples Bancorp

AUBURN, Ind., July 11, 2014 (GLOBE NEWSWIRE) -- Peoples Bancorp (OTCQB:PBNI) reported net income for the third quarter ended June 30, 2014, of $1,004,977 versus the same quarter last year income of $752,708. Third quarter earnings per share were $0.43 compared to $0.32 per share for the same period one year ago, an increase of 34%.

Maurice F. Winkler, President of Peoples Bancorp, indicated "Continued growth in net interest margin and gains from the sale of investment securities have been major contributors to net income for both the just completed quarter and on a year to date basis. Net interest margin is up 10% year to date. Growth in interest income in the investment portfolio has been able to more than make up for the decrease in interest income in the loan portfolio. The Company is still realizing a reduction in its interest expenses, which have decreased 22% year to date. Fewer gains realized in both the investment and loan portfolios, caused non-interest income to decreased 27% for the quarter and 16% year to date. Fiduciary trust income has increased 32% over that time. Last year, the company realized higher non-interest expenses because of prepayment penalties paid to retire some Federal Home Loan Bank borrowings early. That has contributed positively to the decreased interest expense this year, as well as, leading to the decrease in non-interest expenses compared to last year. Income tax expense increased considerably because there has been an increase in taxable income this year compared to fiscal 2013. The Company's loan portfolio is performing very well with only 0.24% of outstanding loans past due 30 days or more as of June 30, 2014."

Peoples reported assets on June 30, 2014, of $462,940,579, an increase of $12.2 million from September 30, 2013. Peoples' deposit balances decreased during the quarter ended June 30, 2014 by $7.3 million to $347,430,524.  

Peoples had 2,311,858 shares of stock outstanding as of June 30, 2014, and the closing price of Peoples Bancorp stock as of July 10, 2014, was $25.00 per share as listed on the OTCQB System under the symbol PBNI. At June 30, 2014, Peoples had stockholders equity of $60,390,736, a capital to assets ratio of 13.00%, and a book value of $26.12. 

Peoples Bancorp, through its subsidiary, Peoples Federal Savings Bank, operates sixteen full-service offices located in Auburn, Avilla, Garrett, Howe, Kendallville, Lagrange, Middlebury, Topeka, Waterloo, Woodburn, and two in Columbia City, Indiana; and Three Rivers (two offices), Schoolcraft, and Union in Michigan.

SELECTED CONSOLIDATED FINANCIAL DATA OF PEOPLES BANCORP
         
  June 30, September 30, June 30,  
  2014 2013 2013  
Balance Sheet Data:        
Total assets $462,940,579 $450,760,405 $465,625,926  
Loans receivable including loans held for sale, net 229,038,841 228,360,874 234,676,414  
Investment securities 172,344,637 180,938,743 184,514,216  
Other interest earning assets 30,748,605 11,614,650 13,964,692  
Deposits 347,430,524 349,677,821 357,113,480  
Borrowed Funds 51,546,954 40,061,234 46,730,802  
Stockholder's equity 60,390,736 58,282,473 58,922,704  
Non-performing loans and REO 762,000 1,066,000 1,099,010  
Equity to assets ratio 13.00% 12.88% 12.65%  
Book value per share $26.12 $25.19 $25.39  
         
  Three Months Ended Nine Months Ended
  June 30, June 30,
  2014 2013 2014 2013
Operating Data:        
Interest income $3,843,145 $3,756,204 $11,669,503 $11,574,563
Interest expense 753,145 824,846 2,279,773 2,922,498
Net interest income $3,090,000 $2,931,358 $9,389,730 $8,652,065
Provision for losses on loans 170,000 60,000 340,000 210,000
Net interest income after provision for losses on loans $2,920,000 $2,871,358 $9,049,730 $8,442,065
Non-Interest income 1,360,565 1,856,451 2,918,897 3,493,052
Non-Interest expenses 3,056,351 3,872,160 9,043,044 9,832,211
Income before income taxes 1,224,214 855,649 2,925,583 2,102,906
Income tax expense 219,237 102,941 414,942 107,246
Net income $1,004,977 $752,708 $2,510,641 $1,995,660
         
Basic income per common share $0.43 $0.32 $1.09 $0.84
Diluted income per common share $0.43 $0.32 $1.09 $0.84
Dividends per common share $0.20 $0.20 $0.60 $0.60
         
Other Data:        
Average yield on all interest-earning assets 3.53% 3.44% 3.59% 3.50%
Average cost of all interest-bearing liabilities 0.80% 0.88% 0.81% 1.03%
Interest rate spread 2.73% 2.56% 2.78% 2.47%
         
Net interest margin 2.84% 2.68% 2.89% 2.62%
         
Return on assets (net income divided by average total assets) 0.86% 0.64% 0.72% 0.56%
Return on equity (net income divided by average total equity) 6.64% 4.86% 5.61% 4.22%
Dividend payout ratio (dividends per common share divided by net income per common share) 46.51% 62.50% 55.05% 71.43%
         
Maurice F. Winkler, III
Phone: 260-925-2500