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): April 27, 2004
Peoples Ohio Financial Corporation
----------------------------------
(Exact name of registrant as specified in its charter)
Ohio 0-49619 31-1795575
- --------------------------------------------------------------------------------
(State of Incorporation) (Commission File No.) (IRS Employer
Identification No.)
635 South Market Street, Troy, Ohio 45373
-----------------------------------------
(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 April 27, 2004
PEOPLES OHIO FINANCIAL CORPORATION
FINANCIAL OVERVIEW
THIRD QUARTER FISCAL 2004
Peoples Ohio Financial Corporation (the "Company"), the holding company for
Peoples Savings Bank (the "Bank"), reported earnings of $1,309,000 for the nine
months ended March 31, 2004, a decline of $687,000, or 34.4%, from the
$1,996,000 reported for the same period in fiscal 2003. Basic earnings per share
were $0.18 for the nine months ended March 31, 2004, compared to $0.26 for the
nine months ended March 31, 2003. Fully diluted earnings per share were $0.17
for the nine months ended March 31, 2004, compared to $0.26 the nine months
ended March 31, 2003.
Net interest income was $5,243,000 for the nine months ended March 31, 2004,
$1,112,000, or 17.5%, less than the $6,355,000 reported for the nine months
ended March 31, 2003. 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 weighted-average maturities
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 $8,432,000 for the nine months ended
March 31, 2004, a decline of $2,562,000, or 23.3% from the $10,994,000 reported
during the nine months ended March 31, 2003, due to lower average loans
outstanding coupled with lower interest rates. The decline in interest income
was partially offset by a $1,451,000 or 31.3% 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, grew to $1,581,000 for the
first nine months of fiscal 2004, compared to the $1,198,000 recorded for the
nine months ended March 31, 2003, an increase of $383,000 or 32.0%. This
increase was primarily attributable to an increases in service charges on
deposit accounts of $302,000 and cash surrender value of life insurance of
$147,000, which were partially off-set by a decline in revenue generated by
trust operations of $79,000.
Noninterest expense was $4,805,000 for the first nine months of fiscal 2004,
$410,000 or 9.3% higher than the $4,395,000 reported for the nine months ended
March 31, 2003.
Net income for the third quarter of fiscal 2004 was $405,000, $242,000 or 37.4%
less than quarterly net income of $647,000 earned in the third quarter of fiscal
2003. Net interest income for the third quarter of fiscal 2004 was $1,753,000
compared to $2,052,000 for the third quarter of fiscal 2003. Noninterest income
was $533,000 for the third quarter of fiscal 2004 and $408,000 for the third
quarter of fiscal 2003. Noninterest expense was $1,672,000 for the third quarter
of fiscal 2004 and $1,443,000 for the third quarter of fiscal 2003.
Total assets at March 31, 2004 were $190.8 million, compared to $207.3 million
at June 30, 2003, as the Bank used cash and 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
March 31, 2004 and June 30, 2003
(in thousands)
March 31, 2004 June 30, 2003
-------------- -------------
Assets (unaudited) (unaudited)
Cash and Cash equivalents $ 7,612 $ 15,835
Investment securities 17,874 17,467
Loans, net 150,306 160,609
FHLB stock 5,433 5,273
Bank-owned life insurance 4,147 0
Other assets 5,460 8,165
-------- --------
Total assets $190,832 $207,349
======== ========
Liabilities and shareholders' equity
Deposits $114,434 $117,629
FHLB advances 50,646 63,329
Other liabilities 689 1,410
-------- --------
Total liabilities 165,769 182,368
Equity from ESOP shares 503 630
Shareholders' equity 24,560 24,351
-------- --------
Total liabilities and shareholders' equity $190,832 $207,349
======== ========
Peoples Ohio Financial Corporation
Condensed, Consolidated Statements of Income
For the Nine Months Ended March 31
(unaudited, in thousands, except share data)
Period ended Period ended
March 31, 2004 March 31, 2003
-------------- --------------
Interest income $ 8,432 $10,994
Interest expense 3,189 4,640
------- -------
Net interest income 5,243 6,355
Provision for loan losses 100 110
------- -------
Net interest income after provision for loan loss 5,143 6,245
Noninterest income 1,581 1,198
Noninterest expense 4,805 4,395
Income tax expense 610 1,051
------- -------
Net income $ 1,309 $ 1,996
======= =======
Earnings per share:
Basic $ 0.18 $ 0.26
======= =======
Diluted $ 0.17 $ 0.26
======= =======
Dividends per share $ 0.06 $ 0.090
======= =======
Peoples Ohio Financial Corporation
Condensed, Consolidated Statements of Income
For the Three Months Ended March 31
(unaudited, in thousands, except share data)
Quarter ended Quarter ended
March 31, 2004 March 31, 2003
-------------- --------------
Interest income $2,760 $3,452
Interest expense 1,007 1,400
------ ------
Net interest income 1,753 2,052
Provision for loan losses 40 30
------ ------
Net interest income after provision for loan loss 1,713 2,022
Noninterest income 533 408
Noninterest expense 1,672 1,443
Income tax expense 169 341
------ ------
Net income 405 $ 647
====== ======
Earnings per share:
Basic $ .007 $ 0.09
====== ======
Diluted $ 0.06 $ 0.08
====== ======
Peoples Ohio Financial Corporation
Selected Financial Data
(unaudited, in thousands)
As of As of
March 31, 2004 March 31, 2003
-------------- --------------
Total assets $ 190,832 $ 218,296
Investment securities 17,874 19,758
Total loans 151,224 171,863
Allowance for loan losses (ALL) 918 837
ALL to total loans 0.61% 0.49%
Non-performing assets $1,378 $ 2,103
Three months ended Three months ended Nine months ended Nine months ended
March 31, 2004 March 31, 2003 March 31, 2004 March 31, 2003
-------------- -------------- -------------- --------------
ROA (annualized) 0.84% 1.19% 0.88% 1.21%
ROE (annualized) 6.61% 10.70% 7.16% 11.20%
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
-------------------------------
Ronald B. Scott
President
Date: April 27, 2004