Peoples Bancorp Reports Third Quarter Earnings


AUBURN, Ind., July 21, 2008 (PRIME NEWSWIRE) -- Peoples Bancorp (Pink Sheets:PBNI) reported net income for the third quarter ended June 30, 2008, of $945,221 versus $717,464 during the same quarter last year. Third quarter earnings per share was $0.33 per share compared to $0.23 per share for the same period one year ago.

Peoples Bancorp reported net income for the nine months ending June 30, 2008, of $2,519,631 versus $2,031,190 during the same quarter last year. For the nine months ending June 30, 2008 earnings per share was $0.84 compared to $0.64 per share for the same period one year ago.

Peoples reported total assets on June 30, 2008, of $451,380,530 a decrease of $17.8 million from September 30, 2007. Loans decreased during the nine months ended June 30, 2008 $20.6 million from September 30, 2007 to $327,591,934. Maurice F. Winkler III, President of Peoples Bancorp, stated, "although we have seen some increase in our nonperforming loans, we continue to be below our peer ratios. In addition, we have increased our reserves to help offset the risk of the nonperforming loans."

Peoples had 2,840,215 shares of stock outstanding as of June 30, 2008, and the closing price of Peoples Bancorp stock as of July 18, 2008, was $12.25 per share as quoted on the Pink Sheets System under the symbol PBNI. At June 30, 2008, stockholders equity was $57,545,036 with a capital to assets ratio of 12.75% and a book value of $20.26. Maurice F. Winkler III stated, "with a capital to asset ratio of 12.75%, Peoples remains as one of the best capitalized institutions in the country."

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.


        SELECTED CONSOLIDATED FINANCIAL DATA OF PEOPLES BANCORP

                               June 30,    September 30,    June 30,
                                2008           2007           2007
                            ------------   -------------  ------------
 Balance Sheet Data:
  Total assets              $451,380,530   $469,193,037   $483,613,466
  Loans receivable 
   including loans held 
   for sale, net             327,701,534    348,485,297    354,737,919
  Investments and other 
   interest earning assets    94,513,737    100,572,388    107,813,419
  Deposits                   327,352,701    349,291,182    356,180,754
  Stockholder's equity        57,545,036     62,032,964     61,757,969
  Non-performing loans 
   and REO                     2,667,000      1,989,000      1,737,000
  Equity to assets ratio           12.75%         12.93%         12.77%
  Book value per share      $      20.26   $      19.97   $      19.63




                     Three Months Ended          Nine Months Ended
                          June 30,                    June 30,
                 -------------------------   -------------------------
                     2008          2007          2008          2007
                 -----------   -----------   -----------   -----------
 Operating Data:
  Interest
   income        $ 6,348,158   $ 7,113,100   $19,973,887   $21,672,939
  Interest
   expense         2,625,714     3,618,560     9,019,924    11,001,531
                 -----------   -----------   -----------   -----------
  Net interest
   income        $ 3,722,444   $ 3,494,540   $10,953,963   $10,671,408

  Provision
   for losses
   on loans          200,000         5,116       359,960        36,431
                 -----------   -----------   -----------   -----------

  Net interest
    income after
    provision
    for losses
    on loans     $ 3,522,444   $ 3,489,424   $10,594,003   $10,634,977
  Non-Interest
   income            733,723       505,941     2,099,394     1,515,787
  Non-Interest
   expenses        2,953,806     2,952,652     9,089,055     9,214,814
                 -----------   -----------   -----------   -----------
  Income before
   income taxes    1,302,361     1,042,713     3,604,342     2,935,950
  Income tax
   expense           357,140       325,249     1,084,711       904,760
                 -----------   -----------   -----------   -----------
  Net income     $   945,221   $   717,464   $ 2,519,631   $ 2,031,190
                 ===========   ===========   ===========   ===========

  Basic income
   per common
   share         $      0.33   $      0.23   $      0.84   $      0.64
  Diluted
   income per
   common share  $      0.33   $      0.23   $      0.84   $      0.64
  Dividends per
   common share  $      0.19   $      0.19   $      0.57   $      0.57

 Other Data:

  Average yield
   on all
   interest-
   earning
   assets               5.92%         6.13%         6.04%         6.13%

  Average cost
   of all
   interest-
   bearing
   liabilities          2.80%         3.60%         3.15%         3.57%
                 -----------   -----------   -----------   -----------
  Interest rate
   spread               3.12%         2.53%         2.89%         2.56%


  Return on
   assets (net
   income
   divided by
   average
   total assets)        0.83%         0.59%         0.73%         0.55%

  Return on
   equity (net
   income
   divided by
   average total
   equity)              6.41%         4.62%         5.47%         4.33%


  Dividend
   payout ratio
   (dividends
   per common
   share divided
   by net income
   per common
   share)              57.58%        82.61%        67.86%        89.06%


            

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