PFDC Peoples Bancorp (MM)

Peoples Bancorp (NASDAQ:PFDC) reported net income for the second fiscal quarter ended March 31, 2006, of $711,450 verses the same quarter last year net income of $1,013,118. Second Quarter earnings per share were $0.21 compared to $0.30 per share for the same period one year ago. These results include a loss on the sale of an investment security of $132,741. Peoples reported assets on March 31, 2006, of $493,953,934, an increase of 5.3 million from September 30, 2005. Loans also increased from $355,854,443 at September 30, 2005 to $365,184,845 at March 31, 2006. Even with the growth of the Company, earnings for the six months decreased from $2,127,343 for the six months ending March 31, 2005 to $1,703,660 for the six months ending March 31, 2006. This decrease in earnings was primarily due to the decrease in interest rate spread during the period, as well as the above mentioned loss on the security sale. Peoples had 3,299,963 shares of stock outstanding as of March 31, 2006, and the closing price of Peoples Bancorp stock as of April 26, 2006, was $21.06 per share as listed on the NASDAQ National Marketing System under the symbol PFDC. At March 31, 2006, stockholders equity was $63,942,275, with a capital to assets ratio of 12.94%, and a book value of $19.38. Peoples Bancorp, through its Indiana subsidiary, Peoples Federal Savings Bank, operates nine full-service offices located in Auburn, Avilla, LaGrange, Garrett, Kendallville, Topeka, Waterloo, and two in Columbia City, Indiana. Peoples Bancorp's Michigan subsidiary, First Savings Bank, operates six full service offices located in Three Rivers (two offices), Schoolcraft, and Union in Michigan, and Howe and Middlebury in Indiana. -0- *T SELECTED CONSOLIDATED FINANCIAL DATA OF PEOPLES BANCORP March 31, September 30, March 31, 2006 2005 2005 ------------- ------------- --------------- Balance Sheet Data: Total assets $493,953,934 $488,617,542 $492,318,252 Loans receivable including loans held for sale, net 365,184,845 355,854,443 356,968,245 Investments and other interest earning assets 106,191,340 106,786,121 111,512,370 Deposits 364,195,878 360,243,356 367,939,212 Stockholders' equity 63,942,275 65,184,382 64,913,202 Non-performing loans and REO 2,139,000 3,026,000 2,777,000 Equity to assets ratio 12.94% 13.34% 13.19% Book value per share $19.38 $19.51 $19.26 Three Months Ended Six Months Ended March 31, March 31, ----------------------- ------------------------- Operating Data: 2006 2005 2006 2005 ----------- ----------- ------------ ------------ Interest income $6,947,258 $6,699,713 $13,870,887 $13,382,994 Interest expense 3,074,043 2,547,122 5,993,472 5,066,311 ----------- ----------- ------------ ------------ Net interest income 3,873,215 4,152,591 7,877,415 8,316,683 Provision for losses on loans 2,950 2,603 46,753 32,453 ----------- ----------- ------------ ------------ Net interest income after provision for losses on loans 3,870,265 4,149,988 7,830,662 8,284,230 Other income 304,653 442,337 1,053,787 986,213 Other expenses 3,115,912 3,041,059 6,401,733 6,008,162 ----------- ----------- ------------ ------------ Income before income taxes 1,059,006 1,551,266 2,482,716 3,262,281 Income tax expense 347,556 538,148 779,056 1,134,938 ----------- ----------- ------------ ------------ Net income $711,450 $1,013,118 $1,703,660 $2,127,343 =========== =========== ============ ============ Basic income per common share $0.21 $0.30 $0.51 $0.63 Diluted income per common share $0.21 $0.30 $0.51 $0.63 Dividends per common share $0.19 $0.18 $0.38 $0.36 Other Data: Average yield on all interest- earning assets 5.93% 5.78% 5.85% 5.70% Average cost of all interest- bearing liabilities 2.90% 2.40% 2.82% 2.38% ----------- ----------- ------------ ------------ Interest rate spread 3.03% 3.38% 3.03% 3.32% Return on assets (net income divided by average total assets) 0.58% 0.82% 0.69% 0.86% Return on equity (net income divided by average total equity) 4.40% 6.19% 5.23% 6.51% Dividend payout ratio (dividends per common share divided by net income per common share) 88.71% 59.77% 74.30% 56.97% *T