LevelStock.com: Peoples Bancorp Reports Earnings

Peoples Bancorp (Pink Sheets:PBNI) today reported net income for the third quarter ended June 30, 2010, of $899,490 versus the same quarter last year income of $854,356. Third quarter earnings per share was $0.35 compared to $0.32 per share for the same period one year ago. Net income for the first nine months of fiscal year 2010 was $2,503,848 versus $2,627,800 during the first nine months of 2009. Earnings per share for the first nine months of the fiscal year was $0.97 compared to $0.96 per share for the same period one year ago.

Maurice F. Winkler, President of Peoples Bancorp, indicated, "This past quarter, net interest margin continued to decline and provision expense continued to increase. However, we were able offset those elements with an increase in non-interest income, as well as a decrease in non-interest expenses. The decrease in gains from the sale of loans was mostly offset by income earned from a bank owned life insurance claim and the gain on sale of securities leading to the increase in non-interest income. The decrease in non-interest expenses came about because of the special FDIC premium assessment that was recorded last year during the third quarter. Our income tax expense continues to be lower because of investments that have been made in tax exempt assets."

Peoples reported assets on June 30, 2010, of $475,917,101 a decrease of $11.9 million from September 30, 2009. Peoples' reported deposit balances on June 30, 2010 of $339,813,676 an increase of $5.1 million from September 30, 2009. The Company's borrowings have decreased by $15.1 million to $73,380,086 since September 30, 2009.

Peoples had 2,540,691 shares of stock outstanding as of June 30, 2010, and the closing price of Peoples Bancorp stock as of July 20, 2010, was $14.05 per share as listed on the Pink Sheets System under the symbol PBNI. At June 30, 2010, Peoples had stockholders equity of $59,454,540, a capital to assets ratio of 12.49%, and a book value of $23.40 per share.

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, 2010 2009 2009 Balance Sheet Data:

Total assets $475,917,101 $487,841,727 $483,751,920

Loans receivable including loans held for sale, net 257,067,477 278,882,213 278,947,812

Investments and other interest earning assets 188,402,159 181,137,188 176,186,058

Deposits 339,813,676 334,713,820 337,056,428

Borrowed Funds 73,380,086 88,505,599 84,724,437

Stockholder's equity 59,454,540 60,870,740 58,827,575

Non-performing loans and REO 2,602,000 3,843,000 4,098,000

Equity to assets ratio 12.49% 12.48% 12.16%

Book value per share $23.40 $22.82 $21.86

Three Months Ended Nine Months Ended June 30, June 30, 2010 2009 2010 2009

Operating Data: Interest income $5,245,528 $5,922,498 $16,481,870 $17,915,073

Interest expense 2,009,524 2,508,521 6,499,348 7,521,621

Net interest income $3,236,004 $3,413,977 $9,982,522 $10,393,452

Provision for losses on loans 228,194 177,129 966,875 433,224

Net interest income after provision for losses on loans $3,007,810 $3,236,848 $9,015,647 $9,960,228

Non-Interest income 895,066 855,901 2,626,122 2,410,122

Non-Interest expenses 2,901,326 3,034,323 8,753,932 9,028,197

Income before income taxes 1,001,550 1,058,426 2,887,837 3,342,153

Income tax expense 102,060 204,070 383,989 714,353

Net income $899,490 $854,356 $2,503,848 $2,627,800

Basic income per common share $0.35 $0.32 $0.97 $0.96

Diluted income per common share $0.35 $0.32 $0.97 $0.96

Dividends per common share $0.19 $0.19 $0.57 $0.57

Other Data: Average yield on all interest-earning assets 4.69% 5.23% 4.87% 5.43%

Average cost of all interest-bearing liabilities 2.04% 2.51% 2.17% 2.58%

Interest rate spread 2.65% 2.72% 2.70% 2.85%

Net interest margin 2.90% 3.01% 2.95% 3.15%

Return on assets (net income divided by average total assets) 0.76% 0.71% 0.70% 0.75%

Return on equity (net income divided by average total equity) 6.02% 5.68% 5.56% 5.89%

Dividend payout ratio (dividends per common share divided by net income per common share) 54.29% 59.38% 58.76% 59.38%

About LevelStock.com

We are an investor community and investors relations website specializing in emerging growth stocks in today's Hot Sectors and providing a platform of services for SmallCap, MicroCap, NanoCap Companies.

We encourage everyone to join our social media sites:

Free Subscription For Our Newsletters: http://www.levelstock.com/

FaceBook: http://www.facebook.com/group.php?gid=283660480870

Twitter: http://twitter.com/levelstock

LevelStock.com is not a registered investment advisor or broker-dealer. The information here is believed to be reliable, but not guaranteed to be accurate by LevelStock.com Please be advised that the information contained may or may not be complete and is solely for informational purposes only. Please read our full disclaimer for complete risks and disclosures http://levelstock/news.php?viewStory=19

CONTACT INFO: LevelStock.com 288 Grove Street Suite 181, Braintree, MA 02184

CONTACT: LevelStock.com e-mail: support@levelstock.com