MARIETTA - Peoples Bancorp Inc. has announced results for the quarter ended Sept. 30. Net income totaled $4.8 million for the third quarter of 2012, representing earnings per diluted common share of 45 cents. In comparison, earnings per diluted common share were 35 cents for the third quarter of 2011 and $0.47 for the second quarter of 2012.
On a year-to-date basis, earnings per diluted common share were $1.56 through nine months of 2012 versus $0.73 during the same period in 2011. The higher earnings in 2012 reflected positive results within Peoples' core businesses, coupled with the impact of improving asset quality trends.
"We are pleased to report another quarter of solid performance driven by success in several key areas," said Chuck Sulerzyski, president and chief executive officer. "We are generating positive operating leverage in 2012 due to our revenue diversity and disciplined expense management. Our credit metrics reflected further progress in restoring asset quality. We also maintained a solid deposit base and strong capital levels which give us capacity to grow through increased lending activity and acquisitions in each line of business."
Also during the third quarter, the company completed two major initiatives expected to provide long-term benefits to stakeholders, Sulerzyski said.
"The first was the expansion in West Virginia through the acquisition of Sistersville. The other was the introduction of our new brand as part of our company-wide brand revitalization," he said. "We believe our expanded and united presence strengthens our ability to be viewed as a trusted partner and financial expert for our clients."
As previously announced, Peoples completed the acquisition of Sistersville Bancorp on Sept, 14. This all-cash transaction resulted in Peoples acquiring two full-service banking offices in West Virginia, adding $31 million of loans and $39 million of deposits after purchase accounting adjustments. Third quarter 2012 net interest income of $13.3 million was slightly lower than the linked quarter, while net interest margin compressed 13 basis points to 3.30 percent. Interest income decreased more than interest expense as long-term interest rates remained at historically low levels during the quarter. Compared to the prior year, net interest income was essentially unchanged for both the quarter and year-to-date periods despite modest net interest margin compression. This success was driven mostly by a greater reduction in funding costs, due to low-cost deposit growth, than the decline experienced in asset yields.
"Like most banks, our ability to maintain net interest income and margin is being challenged by long-term interest rates remaining at extremely low levels for an unprecedented period," said Edward Sloane, chief financial officer and treasurer.