PBTC Peoples Banctrust (MM)

SELMA, Ala., Jan. 24 /PRNewswire-FirstCall/ -- The Peoples BancTrust Co., Inc. (NASDAQ:PBTC) today reported higher net income for the fourth quarter and twelve months ended December 31, 2005. Net income in the fourth quarter of 2005 ("2005 quarter") increased 5% to $1.44 million from $1.37 million in fourth quarter 2004 ("2004 quarter"). Earnings per share in the 2005 quarter were $0.25 basic and $0.24 diluted, compared to $0.24 both basic and diluted in the 2004 quarter. Net income in the twelve months ended December 31, 2005 ("2005") increased 8.2% to $6.5 million from $6.0 million for the same period in 2004 ("2004"). Basic and diluted earnings per share were $1.13 and $1.12 respectively in 2005, compared to $1.08 both basic and diluted in 2004. "We are pleased to be able to report that earnings in the fourth quarter of 2005 increased compared to the same period in 2004," stated Walter A. Parrent, President and Chief Executive Officer. "Net interest income increased on higher loan volumes and yields, while noninterest income increased on higher activity based deposit fees. Another contributing factor to increased earnings was the fact that we continued to realize credits in our loan loss provision account. "We experienced solid loan growth during 2005, most of which we were able to fund internally, thereby maximizing the positive effect on net income in the fourth quarter. Furthermore, our credit quality remained strong as evidenced by the fact that as we grew loans, we were able to reduce our allowance for loan losses, resulting in the previously mentioned credits to our loan loss provision account." Fourth Quarter 2005 Results Net interest income increased in the 2005 quarter to $6.7 million from $6.4 million in the 2004 quarter. The net interest margin in the 2005 quarter was 3.60% on average earning assets of $741.1 million, compared to 3.54% on average earning assets of $722.3 million in the 2004 quarter. Provision for loan losses in the 2005 quarter was a negative $193,000 compared to $0 in the 2004 quarter. Noninterest income, net of securities gains, totaled $2.3 million in the 2005 quarter compared to $1.9 million in the 2004 quarter. Increases in activity based deposit service charges was the primary reason for this increase in noninterest income between the two periods. Noninterest expense increased to $7.0 million in the 2005 quarter from $6.4 million in the 2004 quarter. Personnel and premises expenses associated with expansion efforts and facilities maintenance accounted for the majority of this increase in noninterest expense between the two periods. Provision for income taxes was significantly higher in the 2005 quarter than in the 2004 quarter. This is primarily due to lower income tax credits being applied in the 2005 quarter compared to the 2004 quarter. Twelve Months 2005 Results Net interest income increased in 2005 to $26.6 million from $25.5 million in 2004. The net interest margin in 2005 was 3.64% on average earning assets of $730.0 million, compared to 3.54% on average earning assets of $720.7 million in 2004. Provision for loan losses in 2005 was a negative $675,000 compared to a negative $149,000 in 2004. Noninterest income, net of securities gains, totaled $9.0 million in 2005, compared to $8.2 million in 2004. Increases in activity based deposit service charges was the primary reason for this increase in noninterest income between the two periods. Noninterest expense increased to $27.2 million in 2005 from $26.6 million in 2004. The primary reason for this was an overall increase in salaries and benefits expense between the two periods. Outlook "We will continue to focus on increasing shareholder value through our growth objectives and commitment to the fundamental aspects of this business," Mr. Parrent continued. "We intend to continue growing internally, while evaluating attractive acquisition opportunities. At the same time, we understand that future success in all of our markets depends on our ability to deliver superior service to our customer base, while preserving credit quality and improving operational efficiencies," Mr. Parrent 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. Earnings Summary: (amounts in thousands except share and per share data) Three Months Ended Twelve Months Ended December 31, December 31, 2005 2004 2005 2004 Interest and fees on loans $8,856 $7,063 $32,141 $28,029 Interest and dividends on investment securities 2,125 2,205 8,841 8,213 Other interest income 286 230 1,042 628 Total interest income 11,267 9,498 42,024 36,870 Interest on deposits 4,028 2,435 13,190 9,039 Interest on borrowed funds 507 626 2,226 2,337 Total interest expense 4,535 3,061 15,416 11,376 Net interest income 6,732 6,437 26,608 25,494 Provision (credit) for loan losses (193) - (675) (149) Net interest income after provision (credit) for loan losses 6,925 6,437 27,283 25,643 Deposit service charges 1,474 1,109 5,337 4,749 Net securities gains - 26 14 725 Other noninterest income 855 769 3,687 3,459 Total noninterest income 2,329 1,904 9,038 8,933 Salaries, benefits and other personnel expense 3,873 3,597 14,745 13,889 Premises and fixed assets expense 1,269 1,246 5,138 4,865 Other noninterest expense 1,849 1,582 7,302 7,809 Total noninterest expense 6,991 6,425 27,185 26,563 Income before income taxes 2,263 1,916 9,136 8,013 Provision for income taxes 822 544 2,599 1,971 Net income $1,441 $1,372 $6,537 $6,042 Basic net income per share $0.25 $0.24 $1.13 $1.08 Diluted net income per share $0.24 $0.24 $1.12 $1.08 Dividends per share $0.11 $0.11 $0.44 $0.44 Basic weighted average number of shares 5,892,297 5,581,561 5,805,644 5,574,190 Diluted weighted average number of shares 5,923,965 5,597,182 5,832,284 5,593,040 Balance Sheet Summary and Selected Ratios: (dollar amounts in thousands) 2005 2004 Total assets $811,773 $792,249 Loans, net of the unearned discount 495,509 438,019 Allowance for possible loan losses (6,654) (9,043) Total deposits 688,049 665,653 Total borrowed funds 37,732 48,313 Stockholders' equity $81,551 $75,042 Return on average assets 0.82% 0.78% Return on average equity 8.16% 8.25% Net interest margin 3.64% 3.54% Allowance for loan losses to total loans 1.34% 2.06% Non-accrual loans to total loans 0.21% 0.48% Coverage of allowance for loan losses to non-accrual loans 650% 426% First Call Analyst: FCMN Contact: tom.wilbourne@peoplesbt.com DATASOURCE: Peoples BancTrust Co., Inc. CONTACT: Andrew C. Bearden, Jr., Executive Vice President, Chief Financial Officer of The Peoples BancTrust Co., Inc., +1-334-875-1000 Web site: http://peoplesbt.com/

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