PBTC Peoples Banctrust (MM)

SELMA, Ala., July 20 /PRNewswire-FirstCall/ -- Today, The Peoples BancTrust Company, Inc. (NASDAQ:PBTC) reported significantly higher net income for the quarter and six months ended June 30, 2006, compared to the same periods in 2005. Net income for the second quarter ended June 30, 2006 (the "2006 quarter") totaled $2.3 million, compared to $1.6 million for the second quarter ended June 30, 2005 (the "2005 quarter"). Basic earnings per share increased from $0.27 in the 2005 quarter to $0.39 in the 2006 quarter. Net income for the six months ended June 30, 2006 ("YTD 2006"), totaled $4.8 million, compared to $3.0 million for the same period in 2005 ("YTD 2005"). Basic earnings per share increased from $0.53 in YTD 2005 to $0.81 in YTD 2006. "We are very pleased with our results thus far in 2006," stated Ted M. Henry, Chairman and Interim Chief Executive Officer. "During both the second quarter and for the first six months of 2006, we experienced credit balances in our provision for loan losses account. These credits notwithstanding, core earnings experienced double digit percentage increases for both the second quarter and six month periods compared to 2005. Interest margins, fee income and operating expenses in 2006 all compare favorably to 2005." Second Quarter 2006 Results Net income increased in the 2006 quarter to $2.3 million from $1.6 million in the 2005 quarter. Net interest margin in the 2006 quarter was 3.75% on average earning assets of $781 million, compared to 3.70% on average earning assets of $718 million in the 2005 quarter. Provision for loan losses in the 2006 quarter was a negative $351,000 compared to a negative $143,000 in the 2005 quarter. Expressed as a percentage of average loans outstanding, net loan charge offs in the 2006 quarter totaled 0.05%, compared to 0.83% in the 2005 quarter. Noninterest income totaled $2.3 million in both the 2006 and 2005 quarters. Noninterest expense decreased 5.2% to $6.5 million in the 2006 quarter from $6.9 million in the 2005 quarter. Reductions in salaries and premises expenses contributed to this decrease, as did reductions in expenses associated with marketing and public relations, deposit item charge offs and other general operating expenses. Year-to-date 2006 Results Net income increased to $4.8 million in YTD 2006, from $3.0 million in YTD 2005. Net interest margin for YTD 2006 was 3.75% on average earning assets of $762 million, compared to 3.64% on average earning assets of $723 million for YTD 2005. Provision for loan losses in YTD 2006 was a negative $893,000 compared to a negative $456,000 in YTD 2005. PBTC experienced net loan recoveries in the 2006 quarter, that when expressed as an annualized percentage of average loans outstanding, totaled 0.01% compared to net loan charge offs for the same period in 2005 of 0.60%. Total noninterest income increased 6.8%, to $4.7 million in YTD 2006 from $4.4 million in YTD 2005. This was primarily attributable to an increase in deposit service charges. Total noninterest expenses decreased 7.7% to $12.6 million in YTD 2006, from $13.7 million in YTD 2005. Reductions in salaries and premises expenses contributed to this decrease, as did reductions in expenses associated with marketing and public relations, deposit item charge offs and other general operating expenses. Outlook "We believe our bank has made some very sound business decisions in recent years, ranging from credit culture issues to identifying the markets we wanted to enter. We also believe that our results support these strategies. We have entered some of the most economically robust regions of the state, and anticipate that our markets will continue to provide a solid base to support future expansion efforts. Our bank will continue to focus on its core commercial operations, internal efficiencies and growth strategies," Mr. Henry concluded. About Peoples BancTrust Co., Inc. The Peoples BancTrust Co., Inc. is the parent company of The Peoples Bank and Trust Company, which has 23 offices located in ten Alabama counties (Autauga, Bibb, Butler, Dallas, Elmore, Jefferson, Lee, Montgomery, Shelby and Tuscaloosa). Information contained in this press release, other than historical information, may be considered forward-looking in nature and is subject to various risks, uncertainties and assumptions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated or expected. Among the key factors that may have a direct bearing on Peoples BancTrust's operating results, performance or financial condition are competition, the demand for its products and services, the ability to expand, and numerous other factors as set forth in filings with the Securities and Exchange Commission. THE PEOPLES BANCTRUST COMPANY, INC. CONSOLIDATED BALANCE SHEETS (In Thousands) Assets June 30, 2006 December 31, 2005 (unaudited) Cash and due from banks $33,828 $34,585 Federal funds sold - 14,000 Cash and cash equivalents 33,828 48,585 Available-for-sale securities 203,972 226,043 Loans, net of unearned income 585,812 495,509 Allowance for loan losses (5,785) (6,654) Loans, net 580,027 488,855 Bank premises and equipment 39,847 37,960 Less accumulated depreciation (19,869) (19,014) Bank premises and equipment, net 19,977 18,946 Other real estate, net 1,287 2,746 Interest receivable 4,428 3,921 Intangible assets acquired, net 6,527 6,634 Deferred income taxes 3,236 2,283 Other assets 14,998 13,759 Total assets $868,281 $811,773 Liabilities and Stockholders' Equity Liabilities: Deposits: Demand-noninterest bearing $82,537 $85,538 Demand-interest bearing 235,758 238,010 Savings 36,109 36,965 Time 376,653 327,536 Total deposits 731,058 688,049 Federal funds purchased - - Other borrowed funds 48,432 37,732 Interest payable 2,915 2,176 Income taxes payable 465 223 Other liabilities 1,749 2,042 Total liabilities 784,620 730,222 Stockholder's equity: Common stock 590 590 Treasury stock - (91) Additional paid-in capital 16,868 16,586 Accumulated other comprehensive loss, net of tax (5,155) (3,449) Deferred stock based compensation - (92) Retained earnings 71,358 68,007 Total stockholders' equity 83,661 81,551 Total liabilities and stockholders' equity $868,281 $811,773 THE PEOPLES BANCTRUST COMPANY, INC. CONSOLIDATED STATEMENTS OF INCOME (In thousands except share and per share data) Three Months Ended Six Months Ended June 30, June 30, 2006 2005 2006 2005 (unaudited) (unaudited) Interest income: Interest and fees on loans and bankers acceptances $10,861 $7,654 $20,259 $14,882 Interest and dividends on investment securities: U.S. Government securities 1,073 1,091 2,175 2,163 Other securities and interest-bearing deposits 982 1,183 2,007 2,360 Interest on federal funds sold and interest bearing deposits in banks 119 277 293 510 Total interest income 13,035 10,206 24,733 19,914 Interest expense: Interest on deposits 5,195 2,984 9,508 5,638 Interest on federal funds purchased and other borrowed funds 543 597 1,045 1,211 Total interest expense 5,738 3,580 10,552 6,849 Net interest income 7,297 6,626 14,181 13,065 (Credit) provision for loan losses (351) (143) (893) (456) Net interest income after (credit) provision for loan losses 7,648 6,769 15,074 13,521 Noninterest income: Trust department income 212 224 531 446 Service charges on deposit accounts 1,444 1,391 2,830 2,402 Net securities (losses) gains (20) 0 (18) 14 Other noninterest income 630 692 1,326 1,508 Total noninterest income 2,266 2,308 4,668 4,371 Noninterest expense: Salaries and wages 3,066 3,109 5,826 6,257 Pensions and other employee benefits 620 508 1,205 1,000 Occupancy and equipment expenses 1,311 1,318 2,447 2,580 Other noninterest expenses 1,502 1,918 3,145 3,831 Total noninterest expense 6,499 6,853 12,623 13,669 Income before provision for income taxes 3,415 2,223 7,119 4,223 Provision for income taxes 1,141 612 2,353 1,177 Net income $2,274 $1,611 $4,766 $3,046 Earnings per share Basic net income per share $0.39 $0.27 $0.81 $0.53 Diluted net income per share $0.38 $0.27 $0.80 $0.53 Dividends per share $0.12 $0.11 $0.24 $0.22 Basic weighted average number of shares outstanding 5,902,159 5,859,859 5,900,223 5,723,267 Diluted weighted average number of shares outstanding 5,936,760 5,886,233 5,931,333 5,752,207 THE PEOPLES BANCTRUST COMPANY, INC. SELECTED FINANCIAL RATIOS As of and for the As of and for the quarter ended six months ended June 30, June 30, 2006 2005 2006 2005 (unaudited) (unaudited) Loans to deposits 80.38% 70.81% 80.38% 70.81% Allowance for loan losses to loans 0.99% 1.58% 0.99% 1.58% Net charge offs (recoveries) to average loans 0.05% 0.83% -0.01% 0.60% Nonperforming assets to total assets 0.23% 0.40% 0.23% 0.40% Allowance for loan losses to nonaccrual loans 791% 991% 791% 991% Yield on loans 7.73% 6.93% 7.61% 6.79% Net interest margin 3.75% 3.70% 3.75% 3.64% Noninterest income to average assets 1.08% 1.19% 1.15% 1.13% Noninterest expense to average assets 3.09% 3.52% 3.10% 3.54% Efficiency ratio 67.97% 76.71% 66.97% 78.40% DATASOURCE: The Peoples BancTrust Company, Inc. CONTACT: Andrew C. Bearden, Jr., Executive Vice President, Chief Financial Officer of The Peoples BancTrust Company, Inc., +1-334-875-1000 Web site: http://www.peoplesbt.com/

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