SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): November 6, 2003
Peoples Ohio Financial Corporation
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(Exact name of registrant as specified in its charter)
Ohio 0-49619 31-1795575
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(State of Incorporation) (Commission File No.) (IRS Employer
Identification No.)
635 South Market Street, Troy, Ohio 45373
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(Address of principal executive offices)
Registrant's telephone number, including area code: (937) 339-5000
FORM 8-K
Item 5. Other Events.
The following was contained in a press release issued by Peoples Ohio
Financial Corporation on November 6, 2003:
PEOPLES OHIO FINANCIAL CORPORATION
FINANCIAL OVERVIEW
FIRST QUARTER FISCAL 2004
Peoples Ohio Financial Corporation (the "Company"), the holding company for
Peoples Savings Bank (the "Bank"), reported earnings of $514,000 for the quarter
ended September 30, 2003, a decline of $193,000, or 27.3%, from the $707,000
reported for the same period in 2002. Basic earnings per share were $0.07 for
the quarter ended September 30, 2003, compared to $0.09 for the quarter ended
September 30, 2002. Fully diluted earnings per share were $0.07 for the quarter
ended September 30, 2003, compared to $0.09 for the quarter ended September 30,
2002.
Net interest income was $1,773,000 for the quarter ended September 30, 2003,
$422,000, or 19.2%, less than the $2,195,000 reported for the quarter ended
September 30, 2002. The decline was attributed to the continued low interest
rate environment and the pressure it has put on net interest margins throughout
the banking industry. In addition, the Bank has taken advantage of the prolonged
low interest rate environment to divest of longer-term fixed rate assets
(primarily 30-year fixed rate mortgages) in favor of shorter-term interest
earning assets (primarily investment securities with WAM's of from 1 to 3 years)
in an effort to reduce the Bank's exposure to interest rate risk and better
position the Bank should longer-term interest rates begin to increase. Total
interest income was $2,911,000 for the quarter ended September 30, 2003, a
decline of $967,000, or 24.9% from the $3,878,000 reported during the quarter
ended September 30, 2002, due to lower average loans outstanding coupled with
lower interest rates. The decline in interest income was partially offset by a
$544,000 or 32.3% decline in interest expense during the same period primarily
due to depositors shifting their deposits from higher rate certificates of
deposit to lower rate demand deposit accounts.
Noninterest income, which continues to be a focus, increased $143,000, or 37.5%,
to $524,000 for the quarter ended September 30, 2003, compared to the $381,000
recorded for the quarter ended September 30, 2002, as increases in service
charges on deposit accounts of $111,000 and the increase in cash value of life
insurance of $44,000, were partially off-set by a decline in revenue generated
from trust operations of $18,000.
Noninterest expense was $1,510,000 for the quarter ended September 30, 2003,
$58,000 or 4.0% higher than the $1,452,000 reported for the quarter ended
September 30, 2002.
Total assets at September 30, 2003 were $204.2 million, compared to $224.4
million at September 30, 2002, as the Bank used a portion of the proceeds from
mortgage loan repayments to pay off borrowings from the Federal Home Loan Bank.
The Company was formed during January 2002, and acquired 100% of the Bank's
outstanding stock. Accordingly, all references to the Company, prior to January
2002, reflect operations of the Bank.
This earnings report may contain certain forward-looking statements which are
based on management's current expectations regarding economic, legislative, and
regulatory issues that may impact the Company's earnings in future periods.
Factors that could cause future results to vary materially from current
management expectations include, but are not limited to, general economic
conditions, changes in interest rates, deposit flows, real estate values, and
competition, changes in accounting principles, policies, or
guidelines, changes in legislation or regulation, and other economic,
competitive, governmental, regulatory and technological factors affecting the
Company's operations, pricing, products and services.
Peoples Ohio Financial Corp. stock is traded over the counter under the symbol
"POHF." Sweeney Cartwright & Co. (Contact George Geissbuhler at 1-800-334-7481)
and Robert W. Baird, Investments (Contact Bob Lucas at 1-888-223-3296) act as
market-makers for the Company's stock.
Peoples Ohio Financial Corporation
Condensed, Consolidated Balance Sheets
September 30, 2003 and September 30, 2002
(in thousands)
September 30, 2003 September 30, 2002
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Assets (unaudited) (unaudited)
Cash and Cash equivalents $ 15,006 $ 16,391
Investment securities 23,168 946
Loans, net 150,663 195,455
FHLB stock 5,326 5,112
Bank-owned life insurance 4,050 0
Other assets 5,992 6,505
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Total assets $204,205 $224,409
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Liabilities and shareholders' equity
Deposits $125,342 $124,486
FHLB advances 52,104 73,921
Other liabilities 1,942 1,917
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Total liabilities 179,389 200,324
Equity for ESOP shares 660 521
Shareholders' equity 24,155 23,564
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Total liabilities and shareholders' equity $204,205 $224,409
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Peoples Ohio Financial Corporation
Condensed, Consolidated Statements of Income
For the Quarter Ended September 30, 2003 and September 30, 2002 (unaudited, in
thousands, except share data)
Quarter ended Quarter ended
September 30, 2003 September 30, 2002
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Interest income $2,911 $3,878
Interest expense 1,138 1,682
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Net interest income 1,773 2,195
Provision for loan losses 30 45
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Net interest income after provision for loan loss 1,743 2,150
Noninterest income 524 381
Noninterest expense 1,510 1,452
Income tax expense 243 372
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Net income $ 514 $ 707
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Earnings per share:
Basic $ 0.07 $ 0.09
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Diluted $ 0.07 $ 0.09
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Dividends per share $ 0.06 $0.045
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Peoples Ohio Financial Corporation
Selected Financial Data
(unaudited, in thousands)
As of As of
September 30, 2003 September 30, 2002
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Total assets $ 204,205 $ 224,409
Investment securities 23,168 946
Total loans 151,520 196,358
Allowance for loan losses (ALL) 857 903
ALL to total loans 0.57% 0.46%
Non-performing assets $ 2,021 $ 1,164
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Quarter ended September 30, 2003 Quarter ended September 30, 2002
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ROA 1.00% 1.27%
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ROE 8.48% 12.12%
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
PEOPLES OHIO FINANCIAL CORPORATION
By: /s/ Ronald B. Scott
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Ronald B. Scott, President
Date: November 6, 2003