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|
NEWS RELEASE
FOR IMMEDIATE RELEASE | Contact: | Donald J. Landers |
January 25, 2007 | Chief Financial Officer |
| (740) 373-3155 |
PEOPLES BANCORP INC. REPORTS FOURTH QUARTER AND 2006 RESULTS
___________________________________________________________________________________________
MARIETTA, Ohio - Peoples Bancorp Inc. (“Peoples”) (NASDAQ: PEBO) today reported net income of $4.8 million and diluted earnings per share of $0.44 for the fourth quarter of 2006, compared to $5.7 million and $0.53 a year ago. For the year ended December 31, 2006, Peoples’ net income increased 5% to $21.6 million, from $20.5 million in 2005, while diluted earnings per share were $2.01 and $1.94, respectively, a 4% increase.
Return on average equity was 9.54% in the fourth quarter of 2006 and 11.33% for the year, while return on average assets was 1.01% and 1.15%, respectively. In 2006, Peoples declared dividends totaling $0.83 per share, up 6% from $0.78 in 2005 – marking Peoples’ 41st consecutive year of dividend increases to its shareholders.
“Despite a tough operating environment, we believe 2006 results reflect success in key areas, including non-interest income growth and diversification, strong loan production and improved operating efficiency,” commented Mark F. Bradley, President and Chief Executive Officer. “Higher provision for loan losses negatively impacted fourth quarter and annual results, while ongoing interest rate challenges to net interest margin limited earnings growth in 2006.”
Bradley continued, “In the fourth quarter, we also completed the acquisition of a banking office in Carroll, Ohio and concurrent sale of our Chesterhill, Ohio banking office, resulting in a pre-tax gain of $222,000. This transaction, along with the sale of our South Shore, Kentucky office at the end of the third quarter, was part of our strategic plan to redirect resources to markets we believe have greater growth potential.”
Total non-interest income grew 5% to $7.4 million for the fourth quarter of 2006 and 7% to $30.4 million for the full year, from $7.0 million and $28.5 million for the same periods a year ago, respectively. Insurance and investment revenues were 11% higher year over year and accounted for over half of the improvement in non-interest income. Other significant drivers of non-interest income growth included revenues generated by Peoples’ fiduciary and electronic banking activities. Deposit account service charges remain a significant component of Peoples’ non-interest income, totaling $2.5 million for both the fourth quarter of 2006 and 2005. For the year, deposit account service charges were up 4%, attributable to higher overdraft and non-sufficient funds fees.
In the fourth quarter of 2006, non-interest expense was $12.9 million versus $12.6 million in the fourth quarter of 2005. This 2% increase was largely attributable to normal salary adjustments and related payroll costs. Compared to the third quarter of 2006, total non-interest expense increased only 1%. For the year ended December 31, 2006, total non-interest expense was unchanged from the $51.3 million incurred in 2005, as decreased salaries and benefit costs and lower intangible amortization offset the increases in professional fees, marketing expenses and bankcard costs.
“We are pleased with the combination of improved non-interest revenues and flat expenses in 2006,” stated Bradley. “We remain optimistic about Peoples’ revenue growth opportunities through our relationship-based approach to serving customers. Additionally, we look for areas to control expenses and improve operating efficiencies.”
Net interest income of $13.5 million for the fourth quarter of 2006 was unchanged from the fourth quarter of 2005, as both interest income and expense increased by approximately $3 million. Throughout 2006, Peoples’ funding costs increased faster than its yield on earning assets as a result of competitive loan pricing and terms, coupled with maturing liabilities being replaced at current, higher market interest rates. As a result, Peoples’ net interest margin compressed to 3.31% in the fourth quarter of 2006, from 3.39% in the fourth quarter of 2005. Compared to the third quarter of 2006, both net interest income and margin improved, helped by loan prepayment fees of $280,000 from higher than normal commercial loan prepayments during the fourth quarter. For the full year of 2006, net interest income increased 2%, from the $52.3 million generated in 2005, while
net interest margin compressed by three basis points for 2006 to 3.29%. The higher net interest income for 2006 reflects Peoples’ strategy to adjust its balance sheet mix by reinvesting cash flows from the investment portfolio into higher yielding loans.
“Our strategy to use cash flows from the investment securities to fund loans and reduce wholesale funding contributed to the improvement in net interest income over the third quarter,” said Don Landers, Chief Financial Officer. “However, intense competition for both loans and deposits and the slope of the yield curve limited our ability to fully realize the benefit of the series of interest rate increases by the Federal Reserve. We will continue our efforts to manage Peoples’ interest rate risk position to produce long-term benefits to our net interest income and margin, but expect further compression of net interest margin if rates remain unchanged in 2007.”
In the fourth quarter of 2006, Peoples recognized a gain of $249,000 from the sale of approximately $11 million of tax-exempt municipal securities. This sale was part of tax planning strategies designed to help Peoples manage its effective tax rate and overall tax burden by adjusting the ratio of tax-exempt and taxable income. The securities sold were selected because management expected the issuers to call the securities in the near future. The proceeds from the sale were used to reduce the amount of short-term borrowings.
At December 31, 2006, portfolio loan balances totaled $1.13 billion, down $7.5 million since the prior quarter-end, as loan payoffs and charge-offs more than offset new loan production. Although total loan balances decreased during the fourth quarter, loan production remained strong, with commercial loans accounting for most of the nearly $18 million increase in construction loan balances during the fourth quarter. Excluding overdrafts, the fourth quarter of 2006 also marked the seventh consecutive quarter of consumer loan growth, fueled by Peoples’ indirect lending activities. During the year, total loans grew $60.5 million, or 6%, from $1.07 billion at year-end 2005.
In the fourth quarter of 2006, Peoples’ provision for loan losses was $1.9 million versus $562,000 a year ago and $929,000 in the third quarter of 2006. The higher provision was based on management’s in-depth quarterly analysis of the loan portfolio and is directionally consistent with changes in Peoples’ loan credit quality and loss trends. At December 31, 2006, total nonperforming loans were $10.0 million, or 0.88% of total loans, compared to $6.5 million, or 0.61%, a year ago and $14.2 million, or 1.25%, at September 30, 2006. The allowance for loan losses was $14.5 million, or 145.0% of nonperforming loans, at December 31, 2006, versus 113.5% and 225.2% of nonperforming loans at September 30, 2006 and December 31, 2005, respectively.
As previously disclosed on November 27, 2006, Peoples charged-off $2.9 million of impaired loans related to a single commercial loan relationship and restored $3.6 million of other commercial loans to accruing status during the fourth quarter. While these events reduced the level of nonaccrual loans, net charge-offs increased to $3.5 million in the fourth quarter of 2006, from $550,000 in the fourth quarter of 2005 and $126,000 in the third quarter of 2006. For the full year 2006, net charge-offs were $3.8 million, or 0.35% of average loans, compared to $2.1 million, or 0.20%, in 2005.
“Fourth quarter charge-offs were significantly higher than prior periods due to the single impaired relationship,” added Bradley. “We believe Peoples’ asset quality remains good and loan delinquencies reasonable, which is a reflection of our commitment to sound underwriting practices that emphasize loan quality over growth.”
During the fourth quarter, deposit balances were up slightly since September 30, 2006, totaling $1.23 billion, as non-interest-bearing balances grew $4.4 million and interest-bearing balances increased $1.5 million. Excluding brokered deposits, Peoples increased total deposits by $56.9 million during 2006 with higher certificates of deposit accounting for much of this growth. During 2006, non-interest-bearing deposits also grew $8.2 million, which was primarily attributable to Peoples’ direct mail and gift campaigns. In 2006, Peoples added $87.3 million of brokered deposits to reduce its reliance on Federal Home Loan Bank borrowings and diversify wholesale funding sources.
“ In 2006, we grew earnings despite facing several economic challenges,” summarized Bradley. “We expect the interest rate environment to continue to have a negative impact on earnings growth potential in 2007. We will continue to work to overcome these challenges and generate long-term benefits for our stakeholders.”
Peoples Bancorp Inc., a diversified financial products and services company with $1.9 billion in assets, makes available a complete line of banking, investment, insurance, and trust solutions through 48 locations and 36 ATMs in Ohio, West Virginia and Kentucky. Peoples’ financial service units include Peoples Bank, National Association; Peoples Financial Advisors (a division of Peoples Bank) and Peoples Insurance Agency, Inc. Peoples’ common shares are traded on the NASDAQ Global Select Market under the symbol “PEBO”, and Peoples is a member of the Russell 3000 index of US publicly traded companies. Learn more about Peoples at www.peoplesbancorp.com.
Conference Call to Discuss Earnings:
Peoples will conduct a facilitated conference call to discuss fourth quarter and 2006 results of operations today at 11:00 a.m. eastern standard time, with members of Peoples’ executive management participating. Analysts, media and individual investors are invited to participate in the conference call by calling (877) 407-8033. A simultaneous Webcast of the conference call audio will be available online via the Investor Relations section of Peoples’ website, www.peoplesbancorp.com. Participants are encouraged to call or sign in at least 15 minutes prior to the scheduled conference call time to ensure participation or download and install the necessary software. A replay of the call will be available on Peoples’ website in the “Investor Relations” section for one year.
Safe Harbor Statement:
This news release may contain certain forward-looking statements with respect to Peoples’ financial condition, results of operations, plans, objectives, future performance and business. Except for the historical and present factual information contained in this news release, the matters discussed in this news release, and other statements identified by words such as “feel,” “expect,” “believe,” “plan,” “will,” “would,” “should,” “could” and similar expressions are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Rule 175 promulgated thereunder, and Section 21E of the Securities Exchange Act of 1934, as amended, and Rule 3b-6 promulgated thereunder. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially. Factors that might cause such a difference include, but are not limited to: (1) competitive pressures among financial institutions or from non-financial institutions, which may increase significantly; (2) changes in the interest rate environment which may adversely impact interest margins; (3) prepayment speeds, loan originations and sale volumes, charge-offs and loan loss provisions may be less favorable than expected; (4) general economic conditions, either national or in the states in which Peoples and its subsidiaries do business, may be less favorable than expected; (5) political developments, wars or other hostilities may disrupt or increase volatility in securities markets or other economic conditions; (6) legislative or regulatory changes or actions may adversely affect the business of Peoples’ and its subsidiaries; (7) changes in the conditions and trends in the securities markets; (8) a delayed or incomplete resolution of regulatory issues that could arise; (9) the impact of reputational risk created by these developments on such matters as business generation and retention, funding and liquidity; (10) the costs and effects of regulatory and legal developments, including the outcome of regulatory or other governmental inquiries and legal proceedings and results of regulatory examinations; and (11) other risk factors relating to the banking industry or Peoples as detailed from time to time in Peoples’ reports filed with the Securities and Exchange Commission (“SEC”), including those risk factors included in the disclosure under the heading “ITEM 1A. RISK FACTORS” of Peoples’ Annual Report on Form 10-K for the fiscal year ended December 31, 2005 and Peoples’ Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2006. Peoples undertakes no obligation to update these forward-looking statements to reflect events or circumstances after the date of this news release or to reflect the occurrence of unanticipated events, except as required by applicable law. Copies of documents filed with the SEC are available free of charge at the SEC’s website at http://www.sec.gov and/or from Peoples’ website.
PEOPLES BANCORP INC. (NASDAQ: PEBO)
Financial Highlights (Unaudited)
| Three Months Ended |
| Year Ended | |||||||||||
| December 31, |
| September 30, |
| December 31, |
| December 31, | |||||||
(in $000’s, except per share data) | 2006 |
| 2006 |
| 2005 |
| 2006 |
| 2005 | |||||
PER SHARE DATA |
|
|
|
|
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|
|
|
|
|
|
|
|
|
Net income per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic | $ | 0.45 |
| $ | 0.50 |
| $ | 0.54 |
| $ | 2.03 |
| $ | 1.96 |
Diluted | $ | 0.44 |
| $ | 0.50 |
| $ | 0.53 |
| $ | 2.01 |
| $ | 1.94 |
Cash dividends declared per share | $ | 0.21 |
| $ | 0.21 |
| $ | 0.20 |
| $ | 0.83 |
| $ | 0.78 |
Book value per share | $ | 18.51 |
| $ | 18.46 |
| $ | 17.40 |
| $ | 18.51 |
| $ | 17.40 |
Tangible book value per share (a) | $ | 12.05 |
| $ | 11.99 |
| $ | 10.82 |
| $ | 12.05 |
| $ | 10.82 |
Closing stock price at end of period | $ | 29.70 |
| $ | 29.23 |
| $ | 28.53 |
| $ | 29.70 |
| $ | 28.53 |
Dividend payout as a percentage of net |
| 47.14% |
|
| 42.31% |
|
| 37.34% |
|
| 41.09% |
|
| 40.01% |
Actual shares outstanding | 10,651,985 |
| 10,664,603 |
| 10,518,980 |
| 10,651,985 |
| 10,518,980 | |||||
Weighted average shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic | 10,663,272 |
| 10,638,824 |
| 10,501,679 |
| 10,606,570 |
| 10,444,854 | |||||
Diluted | 10,768,851 |
| 10,748,996 |
| 10,631,310 |
| 10,723,933 |
| 10,581,019 | |||||
PERFORMANCE RATIOS (b) |
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|
|
|
Return on average equity |
| 9.54% |
|
| 11.05% |
|
| 12.50% |
|
| 11.33% |
|
| 11.52% |
Return on average assets |
| 1.01% |
|
| 1.13% |
|
| 1.21% |
|
| 1.15% |
|
| 1.12% |
Efficiency ratio (c) |
| 58.14% |
|
| 59.04% |
|
| 57.09% |
|
| 57.51% |
|
| 59.05% |
Net interest margin (fully-tax equivalent) |
| 3.31% |
|
| 3.20% |
|
| 3.39% |
|
| 3.29% |
|
| 3.32% |
Net loan charge-offs as a percentage |
|
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|
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|
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|
of average loans |
| 1.22% |
|
| 0.04% |
|
| 0.20% |
|
| 0.35% |
|
| 0.21% |
(a) | Excludes the balance sheet impact of intangible assets acquired through acquisitions. |
(b) | Ratios are presented on an annualized basis. |
(c) | Non-interest expense (less intangible amortization) as a percentage of fully tax-equivalent net interest income plus non-interest income (less securities and asset disposal gains/losses). |
PEOPLES BANCORP INC. CONSOLIDATED STATEMENTS OF INCOME
| Three Months Ended |
| Year Ended | ||||||||
| December 31, |
| December 31, | ||||||||
(in $000’s) |
| 2006 |
|
| 2005 |
|
| 2006 |
|
| 2005 |
Interest income | $ | 28,391 |
| $ | 25,380 |
| $ | 108,794 |
| $ | 95,775 |
Interest expense |
| 14,925 |
|
| 11,852 |
|
| 55,577 |
|
| 43,469 |
Net interest income |
| 13,466 |
|
| 13,528 |
|
| 53,217 |
|
| 52,306 |
Provision for loan losses |
| 1,852 |
|
| 562 |
|
| 3,622 |
|
| 2,028 |
Net interest income after provision for loan losses |
| 11,614 |
|
| 12,966 |
|
| 49,595 |
|
| 50,278 |
Net gain on securities transactions |
| 259 |
|
| 303 |
|
| 265 |
|
| 539 |
Net (loss) gain on asset disposals |
| (7) |
|
| 46 |
|
| 27 |
|
| 158 |
Gain on sale of banking offices |
| 222 |
|
| – |
|
| 454 |
|
| – |
Non-interest income: |
|
|
|
|
|
|
|
|
|
|
|
Service charges on deposits |
| 2,468 |
|
| 2,522 |
|
| 10,215 |
|
| 9,801 |
Insurance and investment commissions |
| 2,260 |
|
| 2,057 |
|
| 10,288 |
|
| 9,243 |
Fiduciary revenues |
| 984 |
|
| 900 |
|
| 3,508 |
|
| 3,366 |
Electronic banking revenues |
| 792 |
|
| 703 |
|
| 3,080 |
|
| 2,790 |
Business owned life insurance |
| 428 |
|
| 426 |
|
| 1,637 |
|
| 1,740 |
Mortgage banking income |
| 247 |
|
| 170 |
|
| 825 |
|
| 826 |
Other |
| 199 |
|
| 236 |
|
| 826 |
|
| 704 |
Total non-interest income |
| 7,378 |
|
| 7,014 |
|
| 30,379 |
|
| 28,470 |
Non-interest expense: |
|
|
|
|
|
|
|
|
|
|
|
Salaries and benefits |
| 6,389 |
|
| 6,061 |
|
| 26,178 |
|
| 26,591 |
Net occupancy and equipment |
| 1,423 |
|
| 1,469 |
|
| 5,252 |
|
| 5,311 |
Professional fees |
| 643 |
|
| 607 |
|
| 2,465 |
|
| 2,276 |
Amortization of intangible assets |
| 556 |
|
| 646 |
|
| 2,261 |
|
| 2,669 |
Data processing and software |
| 504 |
|
| 513 |
|
| 1,905 |
|
| 1,924 |
Franchise taxes |
| 424 |
|
| 539 |
|
| 1,760 |
|
| 1,793 |
Marketing |
| 373 |
|
| 466 |
|
| 1,659 |
|
| 1,554 |
Bankcard costs |
| 344 |
|
| 317 |
|
| 1,284 |
|
| 1,188 |
Other |
| 2,252 |
|
| 2,001 |
|
| 8,533 |
|
| 8,036 |
Total non-interest expense |
| 12,908 |
|
| 12,619 |
|
| 51,297 |
|
| 51,342 |
Income before income taxes |
| 6,558 |
|
| 7,710 |
|
| 29,423 |
|
| 28,103 |
Income tax expense |
| 1,789 |
|
| 2,049 |
|
| 7,865 |
|
| 7,604 |
Net income | $ | 4,769 |
| $ | 5,661 |
| $ | 21,558 |
| $ | 20,499 |
PEOPLES BANCORP INC. SELECTED FINANCIAL INFORMATION
| Three Months Ended |
| Year Ended | |||||||||||
| December 31, |
| September 30, |
| December 31, |
| December 31, | |||||||
(in $000’s) | 2006 |
| 2006 |
| 2005 |
| 2006 |
| 2005 | |||||
PROVISION FOR LOAN LOSSES |
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|
Provision for Overdraft Privilege losses | $ | 152 |
| $ | 254 |
| $ | 212 |
| $ | 712 |
| $ | 599 |
Provision for other loan losses |
| 1,700 |
|
| 675 |
|
| 350 |
|
| 2,910 |
|
| 1,429 |
Total provision for loan losses | $ | 1,852 |
| $ | 929 |
| $ | 562 |
| $ | 3,622 |
| $ | 2,028 |
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NET CHARGE-OFFS |
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Gross charge-offs | $ | 3,682 |
| $ | 628 |
| $ | 1,103 |
| $ | 5,484 |
| $ | 4,193 |
Recoveries |
| 205 |
|
| 502 |
|
| 553 |
|
| 1,651 |
|
| 2,125 |
Net charge-offs | $ | 3,477 |
| $ | 126 |
| $ | 550 |
| $ | 3,833 |
| $ | 2,068 |
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Commercial | $ | 3,023 |
| $ | (155) |
| $ | 143 |
| $ | 2,908 |
| $ | 590 |
Overdrafts |
| 193 |
|
| 234 |
|
| 199 |
|
| 704 |
|
| 638 |
Consumer |
| 138 |
|
| 77 |
|
| 97 |
|
| 242 |
|
| 262 |
Real estate |
| 124 |
|
| (29) |
|
| 113 |
|
| (17) |
|
| 604 |
Credit card |
| (1) |
|
| (1) |
|
| (2) |
|
| (4) |
|
| (26) |
Total net charge-offs | $ | 3,477 |
| $ | 126 |
| $ | 550 |
| $ | 3,833 |
| $ | 2,068 |
PEOPLES BANCORP INC. CONSOLIDATED BALANCE SHEETS
(in $000’s) | December 31, |
| December 31, | ||
| 2006 |
| 2005 | ||
ASSETS |
|
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|
Cash and cash equivalents: |
|
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|
|
|
Cash and due from banks | $ | 35,405 |
| $ | 35,564 |
Interest-bearing deposits in other banks |
| 1,101 |
|
| 1,084 |
Federal funds sold |
| 3,300 |
|
| 3,000 |
Total cash and cash equivalents |
| 39,806 |
|
| 39,648 |
Available-for-sale investment securities, at estimated fair value |
|
|
|
|
|
(amortized cost of $550,239 at December 31, 2006 and $591,022 |
|
|
|
|
|
at December 31, 2005) |
| 548,733 |
|
| 589,313 |
Loans, net of unearned interest |
| 1,132,394 |
|
| 1,071,876 |
Allowance for loan losses |
| (14,509) |
|
| (14,720) |
Net loans |
| 1,117,885 |
|
| 1,057,156 |
Loans held for sale |
| 1,041 |
|
| 1,103 |
Bank premises and equipment, net of accumulated depreciation |
| 23,455 |
|
| 23,486 |
Business owned life insurance |
| 48,630 |
|
| 46,993 |
Goodwill |
| 61,373 |
|
| 59,767 |
Other intangible assets |
| 7,479 |
|
| 9,513 |
Other assets |
| 26,853 |
|
| 28,298 |
TOTAL ASSETS | $ | 1,875,255 |
| $ | 1,855,277 |
|
|
|
|
|
|
LIABILITIES |
|
|
|
|
|
Non-interest-bearing deposits | $ | 170,921 |
| $ | 162,729 |
Interest-bearing deposits |
| 1,062,608 |
|
| 926,557 |
Total deposits |
| 1,233,529 |
|
| 1,089,286 |
Federal funds purchased, securities sold under repurchase agreements, |
|
|
|
|
|
and other short-term borrowings |
| 194,883 |
|
| 173,696 |
Long-term borrowings |
| 200,793 |
|
| 362,466 |
Junior subordinated notes held by subsidiary trusts |
| 29,412 |
|
| 29,350 |
Accrued expenses and other liabilities |
| 19,469 |
|
| 17,402 |
TOTAL LIABILITIES |
| 1,678,086 |
|
| 1,672,200 |
|
|
|
|
|
|
STOCKHOLDERS’ EQUITY |
|
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|
|
Common stock, no par value (24,000,000 shares authorized, |
|
|
|
|
|
10,889,242 shares issued at December 31, 2006, and |
|
|
|
|
|
10,869,655 shares issued at December 31, 2005) |
| 162,654 |
|
| 162,231 |
Retained earnings |
| 43,439 |
|
| 30,740 |
Accumulated comprehensive loss, net of deferred income taxes |
| (2,997) |
|
| (1,116) |
Treasury stock, at cost (237,257 shares at December 31, 2006, |
|
|
|
|
|
and 350,675 shares at December 31, 2005) |
| (5,927) |
|
| (8,778) |
TOTAL STOCKHOLDERS’ EQUITY |
| 197,169 |
|
| 183,077 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 1,875,255 |
| $ | 1,855,277 |
PEOPLES BANCORP INC. SELECTED FINANCIAL INFORMATION
(in $000’s, end of period) | December 31, |
| September 30, |
| December 31, | |||
| 2006 |
| 2006 |
| 2005 | |||
LOAN PORTFOLIO |
|
|
|
|
|
|
|
|
Commercial, mortgage | $ | 469,934 |
| $ | 488,278 |
| $ | 504,923 |
Commercial, other |
| 191,847 |
|
| 194,227 |
|
| 136,331 |
Real estate, construction |
| 99,311 |
|
| 81,572 |
|
| 50,745 |
Real estate, mortgage |
| 297,663 |
|
| 299,444 |
|
| 316,081 |
Consumer |
| 73,639 |
|
| 76,331 |
|
| 63,796 |
Total loans | $ | 1,132,394 |
| $ | 1,139,852 |
| $ | 1,071,876 |
|
|
|
|
|
|
|
|
|
DEPOSIT BALANCES |
|
|
|
|
|
|
|
|
Interest-bearing deposits: |
|
|
|
|
|
|
|
|
Retail certificates of deposit | $ | 514,885 |
| $ | 498,564 |
| $ | 465,148 |
Interest-bearing transaction accounts |
| 170,022 |
|
| 180,124 |
|
| 178,030 |
Money market deposit accounts |
| 134,387 |
|
| 136,344 |
|
| 110,372 |
Brokered certificates of deposits |
| 129,128 |
|
| 126,605 |
|
| 41,786 |
Savings accounts |
| 114,186 |
|
| 119,462 |
|
| 131,221 |
Total interest-bearing deposits |
| 1,062,608 |
|
| 1,061,099 |
|
| 926,557 |
Non-interest-bearing deposits |
| 170,921 |
|
| 166,505 |
|
| 162,729 |
Total deposits | $ | 1,233,529 |
| $ | 1,227,604 |
| $ | 1,089,286 |
|
|
|
|
|
|
|
|
|
ASSET QUALITY |
|
|
|
|
|
|
|
|
Nonperforming assets: |
|
|
|
|
|
|
|
|
Loans 90 days or more past due | $ | 1 |
| $ | 177 |
| $ | 251 |
Renegotiated loans |
| 1,218 |
|
| 810 |
|
| – |
Nonaccrual loans |
| 8,785 |
|
| 13,227 |
|
| 6,284 |
Total nonperforming loans |
| 10,004 |
|
| 14,214 |
|
| 6,535 |
Other real estate owned |
| – |
|
| 34 |
|
| 308 |
Total nonperforming assets | $ | 10,004 |
| $ | 14,248 |
| $ | 6,843 |
Allowance for loan losses as a percent of |
|
|
|
|
|
|
|
|
nonperforming loans |
| 145.0% |
|
| 113.5% |
|
| 225.2% |
Nonperforming loans as a percent of total loans |
| 0.88% |
|
| 1.25% |
|
| 0.61% |
Nonperforming assets as a percent of total assets |
| 0.53% |
|
| 0.76% |
|
| 0.37% |
Nonperforming assets as a percent of total loans and |
|
|
|
|
|
|
|
|
other real estate owned |
| 0.88% |
|
| 1.25% |
|
| 0.64% |
Allowance for loan losses as a percent of total loans |
| 1.28% |
|
| 1.42% |
|
| 1.37% |
|
|
|
|
|
|
|
|
|
REGULATORY CAPITAL (a) |
|
|
|
|
|
|
|
|
Tier 1 risk-based capital |
| 11.97% |
|
| 11.72% |
|
| 11.60% |
Total risk-based capital ratio (Tier 1 and Tier 2) |
| 13.17% |
|
| 13.02% |
|
| 12.91% |
Leverage ratio |
| 8.90% |
|
| 8.79% |
|
| 8.10% |
Tier 1 capital | $ | 161,438 |
| $ | 159,214 |
| $ | 144,994 |
Total capital (Tier 1 and Tier 2) | $ | 177,523 |
| $ | 176,856 |
| $ | 161,226 |
Total risk-weighted assets | $ | 1,348,373 |
| $ | 1,358,074 |
| $ | 1,249,378 |
|
|
|
|
|
|
|
|
|
(a) December 31, 2006, data based on preliminary analysis and is subject to revision.
PEOPLES BANCORP INC. SUPPLEMENTAL INFORMATION
(in $000’s, except per share data) | December 31, |
| September 30, |
| December 31, | |||
| 2006 |
| 2006 |
| 2005 | |||
Trust assets under management | $ | 736,745 |
| $ | 724,925 |
| $ | 658,708 |
Mortgage loans serviced for others | $ | 162,511 |
| $ | 157,944 |
| $ | 144,339 |
Employees (full-time equivalent) |
| 547 |
|
| 552 |
|
| 531 |
Announced treasury share plans:(a) |
|
|
|
|
|
|
|
|
Total shares authorized for plan |
| 425,000 |
|
| 425,000 |
|
| 525,000 |
Shares purchased |
| 23,800 |
|
| – |
|
| – |
Average price | $ | $28.55 |
| $ | – |
| $ | – |
|
|
|
|
|
|
|
|
|
(a) 2006 data reflects the 2006 Stock Repurchase Program authorizing the repurchase of up to 425,000 common shares. 2005 data reflects the 2005 Stock Repurchase Program authorizing the repurchase of up to 525,000 common shares. The number of common shares purchased for treasury and average price paid are presented for the three-month period ended on the date indicated.
PEOPLES BANCORP INC. CONSOLIDATED AVERAGE BALANCE SHEET AND NET INTEREST INCOME
| For the Three Months Ended | |||||||||||||||||||
| December 31, 2006 |
| September 30, 2006 |
| December 31, 2005 | |||||||||||||||
(in $000’s) | Balance | Income/ Expense | Yield/ Cost |
| Balance | Income/ Expense | Yield/ Cost |
| Balance | Income/ Expense | Yield/ Cost | |||||||||
Short-term investments | $ | 3,880 | $ | 48 | 4.95 | % |
| $ | 4,291 | $ | 53 | 4.96 | % |
| $ | 2,612 | $ | 23 | 3.51 | % |
Investment securities(a) |
| 560,703 |
| 7,157 | 5.11 |
|
|
| 562,382 |
| 7,151 | 5.09 |
|
|
| 599,373 |
| 7,149 | 4.77 |
|
Gross loans(a) |
| 1,132,784 |
| 21,588 | 7.58 |
|
|
| 1,123,290 |
| 20,858 | 7.38 |
|
|
| 1,066,308 |
| 18,639 | 6.99 |
|
Allowance for loan losses |
| (15,504) |
|
|
|
|
|
| (15,507) |
|
|
|
|
|
| (14,707) |
|
|
|
|
Total earning assets |
| 1,681,863 |
| 28,793 | 6.82 | % |
|
| 1,674,456 |
| 28,062 | 6.67 | % |
|
| 1,653,586 |
| 25,811 | 6.22 | % |
Intangible assets |
| 68,888 |
|
|
|
|
|
| 69,332 |
|
|
|
|
|
| 69,594 |
|
|
|
|
Other assets |
| 128,626 |
|
|
|
|
|
| 129,434 |
|
|
|
|
|
| 130,215 |
|
|
|
|
Total assets |
| 1,879,377 |
|
|
|
|
|
| 1,873,222 |
|
|
|
|
|
| 1,853,395 |
|
|
|
|
Interest-bearing deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Savings |
| 117,079 |
| 204 | 0.69 | % |
|
| 120,595 |
| 201 | 0.66 | % |
|
| 136,287 |
| 249 | 0.72 | % |
Interest-bearing demand deposits |
| 318,534 |
| 2,215 | 2.76 |
|
|
| 311,405 |
| 2,150 | 2.74 |
|
|
| 299,761 |
| 1,582 | 2.09 |
|
Time deposits |
| 615,044 |
| 6,970 | 4.50 |
|
|
| 596,006 |
| 6,444 | 4.29 |
|
|
| 496,316 |
| 4,255 | 3.40 |
|
Total interest-bearing deposits |
| 1,050,657 |
| 9,389 | 3.55 |
|
|
| 1,028,006 |
| 8,795 | 3.39 |
|
|
| 932,364 |
| 6,086 | 2.59 |
|
Short-term borrowings |
| 212,758 |
| 2,800 | 5.15 |
|
|
| 236,967 |
| 3,120 | 5.27 |
|
|
| 170,696 |
| 1,651 | 3.79 |
|
Long-term borrowings |
| 231,734 |
| 2,736 | 4.64 |
|
|
| 234,078 |
| 2,791 | 4.77 |
|
|
| 393,116 |
| 4,115 | 4.13 |
|
Total borrowed funds |
| 444,492 |
| 5,536 | 4.89 |
|
|
| 471,045 |
| 5,911 | 4.92 |
|
|
| 563,812 |
| 5,766 | 4.02 |
|
Total interest-bearing liabilities |
| 1,495,149 |
| 14,925 | 3.95 | % |
|
| 1,499,051 |
| 14,706 | 3.88 | % |
|
| 1,496,176 |
| 11,852 | 3.13 | % |
Non-interest-bearing deposits |
| 169,962 |
|
|
|
|
|
| 167,103 |
|
|
|
|
|
| 162,312 |
|
|
|
|
Other liabilities |
| 15,839 |
|
|
|
|
|
| 16,071 |
|
|
|
|
|
| 15,166 |
|
|
|
|
Total liabilities |
| 1,680,950 |
|
|
|
|
|
| 1,682,225 |
|
|
|
|
|
| 1,673,654 |
|
|
|
|
Stockholders’ equity |
| 198,427 |
|
|
|
|
|
| 190,997 |
|
|
|
|
|
| 179,741 |
|
|
|
|
Total liabilities and equity | $ | 1,879,377 |
|
|
|
|
| $ | 1,873,222 |
|
|
|
|
| $ | 1,853,395 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income/spread(a) |
|
| $ | 13,868 | 2.87 | % |
|
|
| $ | 13,356 | 2.79 | % |
|
|
| $ | 13,959 | 3.09 | % |
Net interest margin(a) |
|
|
|
| 3.31 | % |
|
|
|
|
| 3.20 | % |
|
|
|
|
| 3.39 | % |
| (a) | Information presented on a fully tax-equivalent basis. |
| For the Year Ended | ||||||||||||
| December 31, 2006 |
| December 31, 2005 | ||||||||||
(in $000’s) | Balance | Income/ Expense | Yield/ Cost |
| Balance | Income/ Expense | Yield/ Cost | ||||||
Short-term investments | $ | 3,973 | $ | 180 | 4.53 | % |
| $ | 2,744 | $ | 72 | 2.68 | % |
Investment securities (a) |
| 573,040 |
| 28,828 | 5.03 |
|
|
| 600,755 |
| 28,043 | 4.67 |
|
Gross loans (a) |
| 1,108,575 |
| 81,456 | 7.35 |
|
|
| 1,040,029 |
| 69,308 | 6.66 |
|
Allowance for loan losses |
| (15,216) |
|
|
|
|
|
| (14,930) |
|
|
|
|
Total earning assets |
| 1,670,372 |
| 110,464 | 6.61 | % |
|
| 1,628,598 |
| 97,423 | 5.98 | % |
Intangible assets |
| 68,940 |
|
|
|
|
|
| 70,120 |
|
|
|
|
Other assets |
| 129,718 |
|
|
|
|
|
| 129,967 |
|
|
|
|
Total assets |
| 1,869,030 |
|
|
|
|
|
| 1,828,685 |
|
|
|
|
Interest-bearing deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Savings |
| 122,682 |
| 806 | 0.66 | % |
|
| 144,700 |
| 1,039 | 0.72 | % |
Interest-bearing demand deposits |
| 302,472 |
| 7,716 | 2.55 |
|
|
| 297,652 |
| 5,426 | 1.82 |
|
Time deposits |
| 576,838 |
| 23,739 | 4.12 |
|
|
| 494,590 |
| 16,085 | 3.25 |
|
Total interest-bearing deposits |
| 1,001,992 |
| 32,261 | 3.22 |
|
|
| 936,942 |
| 22,550 | 2.41 |
|
Short-term borrowings |
| 210,962 |
| 10,443 | 4.95 |
|
|
| 128,313 |
| 4,224 | 3.29 |
|
Long-term borrowings |
| 282,739 |
| 12,873 | 4.55 |
|
|
| 410,544 |
| 16,695 | 4.07 |
|
Total borrowed funds |
| 493,701 |
| 23,316 | 4.72 |
|
|
| 538,857 |
| 20,919 | 3.85 |
|
Total interest-bearing liabilities |
| 1,495,693 |
| 55,577 | 3.72 | % |
|
| 1,475,799 |
| 43,469 | 2.94 | % |
Non-interest-bearing deposits |
| 167,440 |
|
|
|
|
|
| 158,693 |
|
|
|
|
Other liabilities |
| 15,604 |
|
|
|
|
|
| 16,253 |
|
|
|
|
Total liabilities |
| 1,678,737 |
|
|
|
|
|
| 1,650,745 |
|
|
|
|
Stockholders’ equity |
| 190,293 |
|
|
|
|
|
| 177,940 |
|
|
|
|
Total liabilities and equity | $ | 1,869,030 |
|
|
|
|
| $ | 1,828,685 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income/spread(a) |
|
| $ | 54,887 | 2.89 | % |
|
|
| $ | 53,954 | 3.04 | % |
Net interest margin(a) |
|
|
|
| 3.29 | % |
|
|
|
|
| 3.32 | % |
| (a) | Information presented on a fully tax-equivalent basis. |
END OF RELEASE