PBTC Peoples Banctrust (MM)

SELMA, Ala., Jan. 25 /PRNewswire-FirstCall/ -- The Peoples BancTrust Company, Inc. (NASDAQ:PBTC) reported earnings and financial condition for the year and fourth quarter ended December 31, 2006. Net income for the twelve months ended December 31, 2006 ("2006") increased 23.6% to $8.1 million, compared to $6.5 million for the twelve months ended December 31, 2005 ("2005"). Basic earnings per share were $1.37 in 2006, compared to $1.13 in 2005. Net income in the fourth quarter of 2006 ("2006 quarter"), totaled $1.46 million, compared to $1.44 million for the fourth quarter of 2005 ("2005 quarter"). Basic earnings per share were $0.25 in both the 2006 and 2005 quarters. "We are very pleased to report record earnings for 2006," stated Don J. Giardina, President and Chief Executive Officer. "We are also very pleased to announce that our quarterly shareholder dividend will increase by 8.3% to $0.13 per share from $0.12 per share, starting in the first quarter of 2007. "Compared to 2005, net interest income increased in 2006 on higher loan volumes and yields, while noninterest income increased on higher service and deposit fee income. Noninterest expenses declined slightly between the two years. We feel strongly that improvements in core earnings components such as these will figure prominently in our future success. "We also believe that the increase in earnings is made more significant by the fact that it was achieved without the benefit of a credit balance in our provision for loan losses account, such as we had in 2005. Having experienced significant loan growth in 2006, we began to realize provision for loan losses on our income statements in the third quarter. In our opinion, credit quality is outstanding, and we continue to maintain the highest possible standards in this area." Fourth Quarter 2006 Results Net interest income in the 2006 quarter increased to $7.5 million, from $6.7 million in the 2005 quarter. Net interest margin in the 2006 quarter was 3.63%, compared to 3.60% in the 2005 quarter. Average earning assets increased to $824.7 million in the 2006 quarter from $741.5 million in the 2005 quarter. Provision for loan losses in the 2006 quarter totaled $510,000 compared to negative $193,000 for the 2005 quarter. As a percent of average loans, net loan charge offs in the 2006 quarter were 0.15%, compared to 0.24% in the 2005 quarter. Noninterest income totaled $2.6 million in the 2006 quarter and $2.3 million in the 2005 quarter. This increase was primarily attributable to higher income realized from insurance and retail brokerage lines of business, as well as a one time gain on the sale of other real estate owned. Noninterest expense in the 2006 quarter totaled $7.5 million compared to $7.0 million in the 2005 quarter. Increases in employee benefits expenses, premises expenses and outside service fees were all contributing factors to this increase. 2006 Results Net interest income increased from $26.6 million in 2005, to $29.3 million in 2006. Net interest margin in 2006 was 3.71%, compared to 3.64% in 2005. Average earning assets increased to $790.2 million in 2006, from $730.1 million in 2005. Provision for loan losses in 2006 was $45,000, compared to negative $675,000 in 2005. As a percent of average loans, net loan charge-offs in 2006 were 0.05%, compared to 0.37% in 2005. Noninterest income totaled $9.6 million in 2006 and $9.0 million in 2005. This increase was primarily attributable to higher deposit fee income and one time gains on the sales of other real estate owned. Noninterest expense declined from $27.2 million in 2005, to $27.0 million in 2006. Lower salaries and wages expense was the primary contributing factor in the decline between the two years. Outlook "It is our intent to grow this Company," continued Mr. Giardina. "We are expanding our presence in what we feel are very attractive markets, while continuing to identify and evaluate strategic acquisition opportunities. We anticipate that greater economies of scale and efficiencies will develop as this company grows and we continue to leverage our state of the art infrastructure and product delivery systems. We believe that one of the best ways to enhance shareholder value is to deliver high quality financial products and services to our new and existing customers in the most timely and efficient manner possible," Mr. Giardina concluded. About Peoples BancTrust Co., Inc. The Peoples BancTrust Co., Inc. is the parent company of The Peoples Bank and Trust Company, which has 25 offices located in ten Alabama counties (Autauga, Bibb, Butler, Dallas, Elmore, Jefferson, Lee, Montgomery, Shelby and Tuscaloosa). Information contained in this press release, other than historical information, may be considered forward-looking in nature and is subject to various risks, uncertainties and assumptions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated or expected. Among the key factors that may have a direct bearing on Peoples BancTrust's operating results, performance or financial condition are set forth in filings with the Securities and Exchange Commission, including the Company's Annual Report on Form 10-K. THE PEOPLES BANCTRUST COMPANY, INC. CONSOLIDATED BALANCE SHEETS (In Thousands) Assets December 31, 2006 December 31, 2005 (unaudited) Cash and due from banks $27,455 $34,585 Federal funds sold - 14,000 Cash and cash equivalents 27,455 48,585 Available-for-sale securities 204,602 226,043 Loans, net of unearned income 631,800 495,509 Allowance for loan losses (6,398) (6,654) Loans, net 625,400 488,855 Bank premises and equipment 46,200 37,960 Less accumulated depreciation (20,813) (19,014) Bank premises and equipment, net 25,387 18,946 Other real estate, net 1,034 2,746 Interest receivable 4,947 3,921 Intangible assets acquired, net 6,428 6,634 Deferred income taxes 2,640 2,283 Other assets 12,812 13,759 Total assets $910,705 $811,772 Liabilities and Stockholders' Equity Liabilities: Deposits: Demand-noninterest bearing $84,728 $85,538 Demand-interest bearing 277,793 238,010 Savings 33,481 36,965 Time 372,699 327,536 Total deposits 768,701 688,049 Other borrowed funds 48,268 37,732 Interest payable 3,468 2,176 Income taxes payable 9 223 Other liabilities 3,465 2,041 Total liabilities 823,911 730,221 Stockholders' equity: Common stock 592 590 Treasury stock - (91) Additional paid-in capital 17,200 16,586 Accumulated other comprehensive loss, net of tax (4,150) (3,449) Deferred stock based compensation (102) (92) Retained earnings 73,254 68,007 Total stockholders' equity 86,794 81,551 Total liabilities and stockholders' equity $910,705 $811,772 THE PEOPLES BANCTRUST COMPANY, INC. CONSOLIDATED STATEMENTS OF INCOME (In thousands except share and per share data) Three Months Ended Twelve Months Ended December 31, December 31, 2006 2005 2006 2005 (unaudited) (unaudited) Interest income: Interest and fees on loans and bankers acceptances $12,083 $8,856 $44,063 $32,141 Interest and dividends on investment securities: U.S. Government securities 1,040 1,108 4,283 4,383 Other securities and interest-bearing deposits 939 1,017 3,893 4,458 Interest on federal funds sold and interest bearing deposits in banks 312 286 1,022 1,042 Total interest income 14,373 11,267 53,262 42,024 Interest expense: Interest on deposits 6,213 4,028 21,715 13,190 Interest on federal funds purchased and other borrowed funds 615 507 2,260 2,226 Total interest expense 6,829 4,535 23,975 15,416 Net interest income 7,544 6,733 29,287 26,608 Provision (credit) for loan losses 510 (193) 45 (675) Net interest income after provision (credit) for loan losses 7,034 6,925 29,242 27,283 Noninterest income: Trust department income 189 227 934 900 Service charges on deposit accounts 1,413 1,474 5,700 5,337 Net securities (losses) gains 0 0 (18) 14 Other noninterest income 1,011 628 2,982 2,787 Total noninterest income 2,612 2,329 9,598 9,038 Noninterest expense: Salaries and wages 3,006 3,024 11,782 12,372 Pensions and other employee benefits 991 850 3,083 2,374 Occupancy and equipment expenses 1,423 1,269 5,172 5,138 Other noninterest expenses 2,096 1,849 6,938 7,302 Total noninterest expense 7,516 6,991 26,975 27,185 Income before provision for income taxes 2,131 2,263 11,866 9,136 Provision for income taxes 677 822 3,786 2,599 Net income $1,455 $1,441 $8,080 $6,537 Earnings per share Basic net income per share $0.25 $0.25 $1.37 $1.13 Diluted net income per share $0.24 $0.24 $1.36 $1.12 Dividends per share $0.12 $0.11 $0.48 $0.44 Basic weighted average number of shares outstanding 5,913,735 5,892,297 5,904,912 5,805,644 Diluted weighted average number of shares outstanding 5,967,151 5,926,465 5,953,762 5,832,284 THE PEOPLES BANCTRUST COMPANY, INC. SELECTED FINANCIAL RATIOS As of and for the As of and for the quarter ended twelve months ended December 31, December 31, 2006 2005 2006 2005 (unaudited) (unaudited) Loans to deposits 81.36% 71.05% 81.36% 71.05% Allowance for loan losses to loans 1.01% 1.34% 1.01% 1.34% Net charge offs to average loans 0.15% 0.24% 0.05% 0.37% Nonperforming assets to total assets 0.57% 0.44% 0.57% 0.44% Allowance for loan losses to nonaccrual loans 152.31% 816.44% 152.31% 816.44% Return on average assets 0.66% 0.70% 0.95% 0.82% Return on average equity 6.66% 7.02% 9.52% 8.16% Yield on loans 7.84% 7.22% 7.77% 6.98% Net interest margin 3.63% 3.60% 3.71% 3.64% Noninterest income to average assets 1.18% 1.14% 1.12% 1.14% Noninterest expense to average assets 3.39% 3.41% 3.16% 3.43% Efficiency ratio 73.99% 77.14% 69.37% 76.26% DATASOURCE: The Peoples BancTrust Company, Inc. CONTACT: Thomas P. Wilbourne, Senior Vice President, Chief Financial Officer of The Peoples BancTrust Company, Inc., +1-334-875-1000 Web site: http://peoplesbt.com/

Copyright