PFDC Peoples Bancorp (MM)

Peoples Bancorp (Nasdaq:PFDC) reported net income for the first quarter ended December 31, 2006, of $800,436 verses the same quarter last year income of $992,210. First Quarter earnings per share was $0.25 per share compared to $0.30 per share for the same period one year ago. Peoples reported assets on December 31, 2006, of $500,137,477 a decrease of 1.2 million from September 30, 2006. Loans decreased during the quarter ended December 31, 2006 3.4 million to 368,303,998. Peoples had 3,185,670 shares of stock outstanding as of December 31, 2006, and the closing price of Peoples Bancorp stock as of January 22, 2007, was $19.60 per share as listed on the NASDAQ National Marketing System under the symbol PFDC. At December 31, 2006, stockholders equity was $62,757,555, capital to assets ratio of 12.55%, and a book value of $19.70. 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. SELECTED CONSOLIDATED FINANCIAL DATA OF PEOPLES BANCORP � December 31, September 30, December 31, 2006� 2006� 2005� Balance Sheet Data: Total assets $500,137,477� $501,353,713� $492,259,852� Loans receivable including loans held for sale, net 368,303,998� 371,662,679� 360,494,122� Investments and other interest earning assets 109,417,659� 108,170,326� 109,723,095� Deposits 366,670,894� 375,848,729� 362,190,132� Stockholder's equity 62,757,555� 62,775,216� 64,886,997� Non-performing loans and REO 2,359,000� 2,500,000� 2,267,000� Equity to assets ratio 12.55% 12.52% 13.18% Book value per share $19.70� $19.57� $19.50� � Three Months Ended December 31, 2006� 2005� Operating Data: Interest income $7,367,656� $6,923,629� Interest expense 3,696,425� 2,919,429� Net interest income $3,671,231� $4,004,200� Provision for losses on loans 3,695� 43,803� Net interest income after provision for losses on loans $3,667,536� $3,960,397� Other income 526,079� 749,134� Other expenses 3,027,541� 3,285,821� Income before income taxes 1,166,074� 1,423,710� Income tax expense 365,638� 431,500� Net income $800,436� $992,210� � Basic income per common share $0.25� $0.30� Diluted income per common share $0.25� $0.30� Dividends per common share $0.19� $0.19� � Other Data: Average yield on all interest-earning assets 6.12% 5.87% Average cost of all interest-bearing liabilities 3.48% 2.76% Interest rate spread 2.64% 3.11% � Return on assets (net income divided by average total assets) 0.64% 0.81% Return on equity (net income divided by average total equity) 5.08% 6.05% Dividend payout ratio (dividends per common share divided by net income per common share) � 76.00% 63.33%