PFDC Peoples Bancorp (MM)

Peoples Bancorp reported net income for the first quarter ended December 31, 2005, of $992,210 verses the same quarter last year income of $1,114,225. First Quarter earnings per share was $0.30 per share compared to $0.33 per share for the same period one year ago. Peoples reported assets on December 31, 2005, of $492,259,852 an increase of 3.6 million from September 30, 2005. Loans increased during the quarter ended December 31, 2005 4.6 million to 360,494,122. Peoples had 3,328,064 shares of stock outstanding as of December 31, 2005, and the closing price of Peoples Bancorp stock as of January 30, 2006 , was $19.76 per share as listed on the NASDAQ National Marketing System under the symbol PFDC. At December 31, 2005, stockholders equity was $64,886,997, capital to assets ratio of 13.18%, and a book value of $19.50. 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 December 31, September 30, December 31, 2005 2005 2004 ------------- ------------- ------------- Balance Sheet Data: Total assets $492,259,852 $488,617,542 $492,001,994 Loans receivable including loans held for sale, net 360,494,122 355,854,443 361,479,109 Investments and other interest earning assets 109,723,095 106,786,121 106,603,042 Deposits 362,190,132 360,243,356 367,987,464 Stockholders' equity 64,886,997 65,184,382 65,294,276 Non-performing loans and REO 2,267,000 3,026,000 2,231,000 Equity to assets ratio 13.18% 13.34% 13.27% Book value per share $19.50 $19.51 $19.37 Three Months Ended December 31, --------------------------- Operating Data: 2005 2004 ------------- ------------- Interest income $6,923,629 $6,683,281 Interest expense 2,919,429 2,519,189 ------------- ------------- Net interest income 4,004,200 4,164,092 Provision for losses on loans 43,803 29,850 ------------- ------------- Net interest income after provision for losses on loans 3,960,397 4,134,242 Other income 749,134 543,876 Other expenses 3,285,821 2,967,103 ------------- ------------- Income before income taxes 1,423,710 1,711,015 Income tax expense 431,500 596,790 ------------- ------------- Net income $992,210 $1,114,225 ============= ============= Basic income per common share $0.30 $0.33 Diluted income per common share $0.30 $0.33 Dividends per common share $0.19 $0.18 Other Data: Average yield on all interest-earning assets 5.87% 5.69% Average cost of all interest-bearing liabilities 2.76% 2.36% ------------- ------------- Interest rate spread 3.11% 3.33% Return on assets (net income divided by average total assets) 0.81% 0.90% Return on equity (net income divided by average total equity) 6.05% 6.83% Dividend payout ratio (dividends per common share divided by net income per common share) 63.33% 54.55% *T