AUBURN, Ind., Nov. 25, 2014 (GLOBE NEWSWIRE) -- Peoples Bancorp (OTCQB:PBNI) reported net income for the fiscal year ended September 30, 2014, was $3,404,323 versus the previous year's income of $2,626,795. Fiscal 2014 earnings per diluted share were $1.47 per share compared to $1.11 per share for the year ended September 30, 2013.
Maurice F Winkler, III, President of Peoples Bancorp, stated "The increase in earnings, for the year ended September 30, 2014, was largely a result of increased net interest income. The growth in interest income from the investment portfolio and the continued decline in the cost of certificates of deposit was able to make up for the continued decline in interest earned on the loan portfolio, and contribute to a 20 basis point increase in net interest margin compared to last year. The change in net interest margin for the fourth quarter, however, was flat compared to the same quarter last year. For the second consecutive year, we were able to see growth in the balance of loans outstanding. We have also continued to see improvement in the quality of our loan portfolio. Total past due loans as of September 30, 2014 were only 0.32% of outstanding balances. That is a number that compares very well to any peer group."
"The company also showed a significant decline in non-interest expenses during the recently completed year. In fiscal 2013 the company prepaid several Federal Home Loan Bank advances resulting in $872,000 in prepayment penalties compared to zero for fiscal 2014. Additionally, we experienced lower health insurance claims by the participants in our health insurance plan. Non-interest income decreased mainly due to fewer gains recognized from the sale of investment securities. The change in the mix of our taxable earnings contributed to the $334,000 increase in tax provision expense. Most of that was related to the increased earnings on mortgage backed securities because of slower prepayment speeds. We also opened our 16th full service office in Woodburn, IN during the year."
On September 30, 2014, stockholders equity was $60,764,630 with a capital to assets ratio of 12.90% and a book value of $26.28. Peoples had 2,311,858 shares of stock outstanding as of September 30, 2014. The closing price of Peoples Bancorp stock as of November 24, 2014, was $23.65 per share as quoted on the OTCQB System under the symbol PBNI.
Peoples Bancorp, through its subsidiary, Peoples Federal Savings Bank, operates sixteen full-service offices located in Auburn, Avilla, LaGrange, Garrett, Howe, Kendallville, Middlebury, Waterloo, Topeka, Woodburn 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 | |||
| 2014 | 2013 | 2012 | |
| Balance Sheet Data: | |||
| Total assets | $471,184,008 | $450,760,405 | $484,309,302 |
| Loans receivable including loans held for sale, net | 229,144,878 | 228,360,874 | 222,302,227 |
| Investments and other interest earning assets | 207,064,534 | 192,553,394 | 226,841,796 |
| Deposits | 353,920,254 | 349,677,821 | 359,359,011 |
| Borrowed funds | 52,867,522 | 40,061,234 | 56,746,457 |
| Stockholder's equity | 60,764,630 | 58,282,473 | 63,253,783 |
| Non-performing loans and REO | 788,000 | 1,066,000 | 1,448,000 |
| For Year Ended September 30 | |||
| 2014 | 2013 | 2012 | |
| Operating Data: | |||
| Interest income | $15,478,204 | $15,369,552 | $17,514,489 |
| Interest expense | 3,018,748 | 3,708,773 | 5,446,755 |
| Net interest income | $12,459,456 | $11,660,779 | $12,067,734 |
| Provision for losses on loans | 385,250 | 263,750 | 423,000 |
| Net interest income after provision for losses on loans | $12,074,206 | $11,397,029 | $11,644,734 |
| Other income | 3,650,525 | 4,202,038 | 3,634,995 |
| Other expenses | 11,834,882 | 12,820,996 | 11,967,527 |
| Income before income taxes | 3,889,849 | 2,778,071 | 3,312,202 |
| Income tax expense | 485,526 | 151,276 | 268,546 |
| Net income | $3,404,323 | $2,626,795 | $3,043,656 |
| Basic income per common share | $1.47 | $1.11 | $1.26 |
| Diluted income per common share | $1.47 | $1.11 | $1.26 |
| Dividends per common share | $0.80 | $0.80 | $0.80 |
| Other Data: | |||
| Average yield on all interest-earning assets | 3.56% | 3.50% | 3.85% |
| Average cost of all interest-bearing liabilities | 0.80% | 0.98% | 1.37% |
| Interest rate spread | 2.76% | 2.52% | 2.48% |
| Net interest margin | 2.86% | 2.66% | 2.65% |
| Number of full service banking offices | 16 | 15 | 15 |
| Return on assets (net income divided by average total assets) | 0.73% | 0.56% | 0.63% |
| Return on equity (net income divided by average total equity) | 5.67% | 4.24% | 4.85% |
| Dividend payout ratio (dividends per common share divided by net income per common share) | 54.42% | 72.07% | 63.49% |
| Equity to assets ratio (average total equity divided by average total assets) | 12.90% | 13.21% | 12.92% |