PBTC Peoples Banctrust (MM)

SELMA, Ala., Oct. 19 /PRNewswire-FirstCall/ -- The Peoples BancTrust Company, Inc. (NASDAQ:PBTC) reported earnings and condition for the third quarter and first nine months of 2006. Net income totaled $1.9 million for the three months ended September 30, 2006 (the "2006 quarter"), compared to $2.1 million for the same period in 2005 (the "2005 quarter"). Basic and diluted earnings per share were $0.31 and $0.35 for the 2006 and 2005 quarters, respectively. For the nine months ended September 30, 2006 ("YTD 2006"), net income totaled $6.6 million, compared to $5.1 million for the same period in 2005 ("YTD 2005"). Basic and diluted earnings per share were $1.12 and $0.88 for YTD 2006 and YTD 2005, respectively. "We are pleased with our results thus far in 2006," stated Don J. Giardina, President and Chief Executive Officer. "Net interest income has increased significantly over prior periods, noninterest revenues remain solid and operating expenses compare favorably to our plan projections and prior periods. Quarter-over-quarter net income is slightly lower, primarily due to the fact that the third quarter of this year contains charges against income in our provision for loan losses account, compared to prior quarters in 2005 when we were in the unique position of realizing additions to income from our provision for loan losses account. Not withstanding the provision for loan losses, pretax earnings have experienced double digit increases throughout 2006 compared to 2005." Third Quarter 2006 Results Net interest income in the 2006 quarter increased to $7.6 million, from to $6.8 million in the 2005 quarter. Net interest margin in the 2006 quarter was 3.70%, compared to 3.69% in the 2005 quarter. Average earning assets increased to $811.1 million in the 2006 quarter from $732.4 million in the 2005 quarter. Provision for loan losses in the 2006 quarter totaled $428,000 compared to negative $26,000 for the 2005 quarter. As a percent of average loans, net loan charge offs in the 2006 quarter were 0.07%, compared to 0.10% in the 2005 quarter. Noninterest income totaled $2.3 million in both the 2006 and 2005 quarters. Noninterest expense in the 2006 quarter totaled $6.8 million compared to $6.5 million in the 2005 quarter. An increase in employee benefits expense, which was primarily attributable to staff additions in new markets, was the primary contributing factor to this increase. Year-to-date 2006 Results Net interest income increased from $19.9 million in YTD 2005, to $21.7 million in YTD 2006. Net interest margin in YTD 2006 was 3.73%, compared to 3.66% in YTD 2005. Average earning assets increased to $778.6 million in YTD 2006, from $726.2 million in YTD 2005. Provision for loan losses in YTD 2006 was negative $465,000, compared to negative $482,000 in YTD 2005. As a percent of average loans, net loan charge-offs in YTD 2006 were 0.02%, compared to 0.42% in YTD 2005. Noninterest income totaled $7.0 million in YTD 2006 and $6.7 million in YTD 2005. Increases in deposit fee income accounted for the majority of the overall increase in noninterest income. Noninterest expense declined from $20.2 million in YTD 2005, to $19.5 million in YTD 2006. Outlook "We believe our Bank is well positioned for growth. Having entered some of the most dynamic markets in the state, we feel like opportunities exist to expand our presence within and beyond our current footprint. Recent progress in the areas of credit culture and quality, as well as in leveraging our operational capacities, further enhances our ability to take advantage of growth opportunities as they arise. We will continue to concentrate on the fundamental aspects of the banking business, which we believe are critical in providing competitive and sustainable returns to our shareholders, while meeting the demands of the markets we serve," concluded Mr. Giardina. 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 set forth in filings with the Securities and Exchange Commission, including the Company's Annual Report on Form 10-K. THE PEOPLES BANCTRUST COMPANY, INC. CONSOLIDATED BALANCE SHEETS (In Thousands) Assets September 30, December 31, 2006 2005 (unaudited) Cash and due from banks $48,359 $34,585 Federal funds sold - 14,000 Cash and cash equivalents 48,359 48,585 Available-for-sale securities 198,535 226,043 Loans, net of unearned income 592,242 495,509 Allowance for loan losses (6,112) (6,654) Loans, net 586,128 488,855 Bank premises and equipment 41,123 37,960 Less accumulated depreciation (20,314) (19,014) Bank premises and equipment, net 20,808 18,946 Other real estate, net 1,314 2,746 Interest receivable 5,001 3,921 Intangible assets acquired, net 6,478 6,634 Deferred income taxes 2,315 2,283 Other assets 16,657 13,759 Total assets $885,596 $811,773 Liabilities and Stockholders' Equity Liabilities: Deposits: Demand-noninterest bearing $83,852 $85,538 Demand-interest bearing 250,650 238,010 Savings 34,970 36,965 Time 373,969 327,536 Total deposits 743,440 688,049 Other borrowed funds 48,530 37,732 Interest payable 3,628 2,176 Income taxes payable 1,221 223 Other liabilities 2,300 2,042 Total liabilities 799,120 730,222 Stockholders' equity: Common stock 591 590 Treasury stock - (91) Additional paid-in capital 17,066 16,586 Accumulated other comprehensive loss, net of tax (3,579) (3,449) Deferred stock based compensation (112) (92) Retained earnings 72,509 68,007 Total stockholders' equity 86,476 81,551 Total liabilities and stockholders' equity $885,596 $811,773 THE PEOPLES BANCTRUST COMPANY, INC. CONSOLIDATED STATEMENTS OF INCOME (In thousands except share and per share data) Three Months Ended Nine Months Ended September 30, September 30, 2006 2005 2006 2005 (unaudited) (unaudited) Interest income: Interest and fees on loans and bankers acceptances $11,721 $8,403 $31,980 $23,285 Interest and dividends on investment securities: U.S. Government securities 1,069 1,112 3,243 3,275 Other securities and interest-bearing deposits 947 1,082 2,955 3,441 Interest on federal funds sold and interest bearing deposits in banks 417 246 710 755 Total interest income 14,155 10,843 38,888 30,757 Interest expense: Interest on deposits 5,994 3,523 15,501 9,162 Interest on federal funds purchased and other borrowed funds 600 509 1,645 1,719 Total interest expense 6,594 4,032 17,146 10,881 Net interest income 7,562 6,811 21,743 19,876 Provision (credit) for loan losses 428 (26) (465) (482) Net interest income after provision (credit) for loan losses 7,134 6,837 22,207 20,358 Noninterest income: Trust department income 214 227 745 673 Service charges on deposit accounts 1,458 1,461 4,287 3,863 Net securities (losses) gains 0 0 (18) 14 Other noninterest income 646 650 1,972 2,159 Total noninterest income 2,318 2,338 6,986 6,709 Noninterest expense: Salaries and wages 2,950 3,092 8,776 9,348 Pensions and other employee benefits 887 523 2,092 1,524 Occupancy and equipment expenses 1,302 1,289 3,749 3,869 Other noninterest expenses 1,697 1,621 4,842 5,453 Total noninterest expense 6,836 6,525 19,459 20,194 Income before provision for income taxes 2,615 2,650 9,734 6,873 Provision for income taxes 756 600 3,109 1,777 Net income $1,860 $2,050 $6,625 $5,096 Earnings per share Basic net income per share $0.31 $0.35 $1.12 $0.88 Diluted net income per share $0.31 $0.35 $1.12 $0.88 Dividends per share $0.12 $0.11 $0.36 $0.33 Basic weighted average number of shares outstanding 5,906,523 5,881,047 5,901,939 5,776,439 Diluted weighted average number of shares outstanding 5,951,038 5,906,186 5,938,918 5,803,011 THE PEOPLES BANCTRUST COMPANY, INC. SELECTED FINANCIAL RATIOS As of and for the As of and for the quarter ended nine months ended September 30, September 30, 2006 2005 2006 2005 (unaudited) (unaudited) Loans to deposits 78.84% 70.00% 78.84% 70.00% Allowance for loan losses to loans 1.03% 1.47% 1.03% 1.47% Net charge offs to average loans 0.07% 0.10% 0.02% 0.42% Nonperforming assets to total assets 0.20% 0.37% 0.20% 0.37% Allowance for loan losses to nonaccrual loans 1425% 843% 1425% 843% Yield on loans 8.00% 7.10% 7.75% 6.90% Net interest margin 3.70% 3.69% 3.73% 3.66% Noninterest income to average assets 1.06% 1.19% 1.10% 1.14% Noninterest expense to average assets 3.12% 3.33% 3.06% 3.42% Efficiency ratio 69.19% 71.31% 67.73% 75.96% 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://peoplesbt.com/

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