The Peoples BancTrust Co., Inc. Reports Higher Fourth Quarter and Year End Income

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: [e-mail] 

DATASOURCE: Peoples BancTrust Co., Inc.



CONTACT:  Andrew C. Bearden, Jr., Executive Vice President, Chief

Financial Officer of The Peoples BancTrust Co., Inc., [phone]



Web site:  http://peoplesbt.com/

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