WYALUSING, Pa., April 23, 2012 /PRNewswire/ -- Anthony J. Gabello, President and Chief Executive Officer of Peoples LTD, holding company for Peoples State Bank of Wyalusing, has announced consolidated financial results for the year ending December 31, 2011. Net income of $1,549,000 for 2011, or $3.42 earnings per share, reflects a 37.5% increase in net income over year ending December 31, 2010 of $1,127,000, or $2.49 per share. Return on assets was 0.68% for 2011 compared to 0.50% for 2010. Return on equity was 8.25% for 2011 compared to 6.52% for 2010.
"Our trends continued to be positive, and we are very pleased with our 2011 performance. Our increase in net income was achieved despite the expenses incurred as a result of the September 2011 flooding. Our capital position continued to grow stronger, which allowed us to resume dividend payments in the third and fourth quarters. Through these challenging economic times, we remain committed to the strategies that have enabled us to improve our performance and strengthen our Bank, as well as to the people and communities we serve," stated Gabello.
Earnings in 2011 were positively impacted by improvement in the Bank's overall asset quality. The provision for loan loss of $780,000, in comparison to the 2010 provision of $1,290,000, reflects a decrease in expense of $510,000 in 2011.
Net interest income was improved by $525,000. Interest expense was reduced by 24% or $704,000 in 2011. A decrease in outstanding borrowings of $11,506,000 reduced interest expense by $367,000 for the period. Interest income remained constant over the prior year.
Noninterest expense rose by $515,000 as a reflection of rising cost of salaries and benefits as well as technology expenses which increased by $313,000 and $143,000, respectively. A one time expense related to flood damage to the Bank's Wyalusing Office in the third quarter negatively impacted pre-tax earnings in the amount of $352,000.
Assets increased to $236,247,000 from year-ending 2010 of $235,159,000. Dividend payments resumed in the third and fourth quarters of 2011 at $.24 per share adjusted for a 5% stock dividend paid in the fourth quarter. Total shareholders' equity increased by $2,021,000 or 11.38% to $19,780,000.
Complete audited financial statements for the year ending December 31, 2011 can be found on the Bank's website at www.peoplesbankpa.com.
Note: This press release may contain forward looking statements as defined in the Private Securities Litigation Reform Act of 1995. Actual results and trends could differ materially from those set forth in such statements due to various factors. These factors include operating, legal and regulatory risks; changing economic and competitive conditions and other risks and uncertainties.
Peoples LTD is the holding company for Peoples State Bank of Wyalusing. Peoples State Bank is an independent community bank with branch locations throughout Bradford, Sullivan and Wyoming Counties. Stock of Peoples LTD is traded in the Over-the-Counter market under the symbol PPLL. Learn more about Peoples State Bank at www.peoplesbankpa.com.
SOURCE Peoples LTD