Peoples Bancorp Reports Fiscal 2013 Earnings

Peoples Bancorp Reports Fiscal 2013 Earnings

AUBURN, Ind., Nov. 7, 2013 (GLOBE NEWSWIRE) -- Peoples Bancorp (OTCQB:PBNI)
reported net income for the fiscal year ended September 30, 2013, was
$2,626,794 versus the previous year's income of $3,043,656. Fiscal 2013
earnings per diluted share were $1.11 per share compared to $1.26 per share
for the year ended September 30, 2012.

Maurice F Winkler, III, President of Peoples Bancorp, stated "The ongoing low
interest rate period has continued to present challenges for the company.
Although 2013 earnings are lower than 2012, we are encouraged by our loan
portfolio growth. Net interest margin was flat for the year compared to last
year, however, net interest margin increased by 21 basis points in the last
quarter of the year. The balances of non-performing loans and real estate
owned have continued to decline and the delinquency rates on loans at the bank
are much lower than the average for the peer group."

"During the year, the bank prepaid several Federal Home Loan Bank advances
resulting in $872,000 in prepayment penalties. The Company also had a $474,000
or 47% increase in the cost of providing health insurance to our employees due
to an increase in claims activity. Non-interest expenses would have declined
without those items. Non-interest income increased $567,000 led by gains on
the sale of investment securities of $1.1 million which was an increase of
$538,000 from the year before. Continued improvement in asset quality resulted
in a lower provision for loan losses compared to the previous year. Provision
expense declined by $173,000."

On September 30, 2013, stockholders equity was $58,292,472 with a capital to
assets ratio of 12.88% and a book value of $25.19. Peoples had 2,314,288
shares of stock outstanding as of September 30, 2013. The closing price of
Peoples Bancorp stock as of November 6, 2013, was $23.50 per share as quoted
on the OTCQB System under the symbol PBNI.

Peoples Bancorp, through its subsidiary, Peoples Federal Savings Bank,
operates fifteen full-service offices located in Auburn, Avilla, LaGrange,
Garrett, Howe, Kendallville, Middlebury, Waterloo, Topeka, and Columbia City
(two offices), in Indiana, and Three Rivers (two offices), Schoolcraft, and
Union in Michigan.

SELECTED CONSOLIDATED FINANCIAL DATA OF PEOPLES BANCORP
                                                               
                                       September 30
                                       2013         2012         2011
Balance Sheet Data:                                             
Total assets                            $452,518,512 $484,309,302 $480,583,263
Loans receivable including loans held   228,363,176  222,302,227  222,251,918
for sale, net
Investments and other interest earning  192,544,393  226,841,796  226,754,365
assets
Deposits                                349,795,781  359,359,011  353,810,967
Borrowed funds                          41,677,493   56,746,457   61,022,847
Stockholder's equity                    58,292,472   63,253,783   61,618,201
Non-performing loans and REO            1,066,000    1,448,000    1,921,000
                                                               
                                       For Year Ended September 30
                                       2013         2012         2011
Operating Data:                                                 
Interest income                         $15,369,548  $17,514,489  $19,703,047
Interest expense                        3,708,772    5,446,755    6,468,946
Net interest income                     $11,660,776  $12,067,734  $13,234,101
Provision for losses on loans           250,000      423,000      768,501
Net interest income after provision for $11,410,776  $11,644,734  $12,465,600
losses on loans
Other income                            4,202,039    3,634,995    4,131,312
Other expenses                          12,834,745   11,967,527   12,097,194
Income before income taxes              2,778,070    3,312,202    4,499,718
Income tax expense                      151,276      268,546      729,423
Net income                              $2,626,794   $3,043,656   $3,770,295
                                                               
Basic income per common share           $1.11        $1.26        $1.52
Diluted income per common share         $1.11        $1.26        $1.52
Dividends per common share              $0.80        $0.80        $0.76
                                                               
Other Data:                                                     
Average yield on all interest-earning   3.50%        3.85%        4.41%
assets
Average cost of all interest-bearing    0.98%        1.37%        1.64%
liabilities
Interest rate spread                    2.52%        2.48%        2.77%
                                                               
Net interest margin                     2.66%        2.65%        2.96%
                                                               
Number of full service banking offices  15           15           15
Return on assets (net income divided by 0.56%        0.63%        0.79%
average total assets)
Return on equity (net income divided by 4.24%        4.85%        6.27%
average total equity)
Dividend payout ratio (dividends per
common share divided by net income per  72.07%       63.49%       50.00%
common share)
Equity to assets ratio (average total   13.21%       12.92%       12.65%
equity divided by average total assets)

CONTACT: Maurice F. Winkler, III
         Phone: 260-925-2500