WYALUSING, Pa., March 8, 2013 /PRNewswire/ -- Peoples LTD, holding company for PS Bank, has announced unaudited earnings for the year ending December 31, 2012. Net income of $2,467,000 for 2012, or $5.19 earnings per share, reflects a 59% increase in net income over the year ending December 31, 2011 of $1,549,000, or $3.26 per share. Return on assets was 1.02% for 2012 compared to 0.66% for 2011. Return on equity was 11.94% for 2012 compared to 8.12% for 2011.
Net interest income improved by $795,000 or 8% compared to 2011. Total interest expense was reduced by 30% or $653,000 in 2012. A decrease in interest on borrowed funds accounted for $341,000 of the reduction.
Noninterest expense was held to a 2% or $192,000 increase for 2012. Expenses continue to reflect the rising cost of salaries and benefits, which increased $261,000, while the cost of the Bank's FDIC assessment fell by $95,000 or 27%, due to improving asset quality. Occupancy, bank premise and equipment expenses were reduced by $141,000 or 13%.
Earnings in 2012 benefited from continued improvement in the Bank's overall asset quality, reduced loan loss provision expense, loan growth, and favorable mortgage loan conditions.
Anthony J. Gabello, President and Chief Executive Officer reported, "Our continued improvement in asset quality allowed us to recognize cost savings in a number of areas, allowing us to shift our focus towards the future of the bank. In the fourth quarter we completed our rebranding campaign to PS Bank which has been well received. Just prior to year end we also opened our ninth full service branch in Tunkhannock, which offers us increased opportunities for loans and deposits."
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 PS Bank. PS 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 PS Bank at www.peoplesbankpa.com.
SOURCE Peoples LTD