The Peoples BancTrust Co., Inc. Reports Third Quarter Earnings

SELMA, Ala., Oct. 19  /PRNewswire-FirstCall/ -- The Peoples BancTrust Company, Inc. (NASDAQ:PBTC) reported earnings and condition for the third quarter and first nine months of 2006.

Net income totaled $1.9 million for the three months ended September 30, 2006 (the "2006 quarter"), compared to $2.1 million for the same period in 2005 (the "2005 quarter").  Basic and diluted earnings per share were $0.31 and $0.35 for the 2006 and 2005 quarters, respectively.

For the nine months ended September 30, 2006 ("YTD 2006"), net income totaled $6.6 million, compared to $5.1 million for the same period in 2005 ("YTD 2005").  Basic and diluted earnings per share were $1.12 and $0.88 for YTD 2006 and YTD 2005, respectively.

"We are pleased with our results thus far in 2006," stated Don J. Giardina, President and Chief Executive Officer.  "Net interest income has increased significantly over prior periods, noninterest revenues remain solid and operating expenses compare favorably to our plan projections and prior periods.  Quarter-over-quarter net income is slightly lower, primarily due to the fact that the third quarter of this year contains charges against income in our provision for loan losses account, compared to prior quarters in 2005 when we were in the unique position of realizing additions to income from our provision for loan losses account.  Not withstanding the provision for loan losses, pretax earnings have experienced double digit increases throughout 2006 compared to 2005."

Third Quarter 2006 Results

Net interest income in the 2006 quarter increased to $7.6 million, from to $6.8 million in the 2005 quarter.  Net interest margin in the 2006 quarter was 3.70%, compared to 3.69% in the 2005 quarter.  Average earning assets increased to $811.1 million in the 2006 quarter from $732.4 million in the 2005 quarter.

Provision for loan losses in the 2006 quarter totaled $428,000 compared to negative $26,000 for the 2005 quarter.  As a percent of average loans, net loan charge offs in the 2006 quarter were 0.07%, compared to 0.10% in the 2005 quarter.

Noninterest income totaled $2.3 million in both the 2006 and 2005 quarters.

Noninterest expense in the 2006 quarter totaled $6.8 million compared to $6.5 million in the 2005 quarter.  An increase in employee benefits expense, which was primarily attributable to staff additions in new markets, was the primary contributing factor to this increase.

Year-to-date 2006 Results

Net interest income increased from $19.9 million in YTD 2005, to $21.7 million in YTD 2006.  Net interest margin in YTD 2006 was 3.73%, compared to 3.66% in YTD 2005.  Average earning assets increased to $778.6 million in YTD 2006, from $726.2 million in YTD 2005.

Provision for loan losses in YTD 2006 was negative $465,000, compared to negative $482,000 in YTD 2005.  As a percent of average loans, net loan charge-offs in YTD 2006 were 0.02%, compared to 0.42% in YTD 2005.

Noninterest income totaled $7.0 million in YTD 2006 and $6.7 million in YTD 2005.  Increases in deposit fee income accounted for the majority of the overall increase in noninterest income.

Noninterest expense declined from $20.2 million in YTD 2005, to $19.5 million in YTD 2006.

Outlook

"We believe our Bank is well positioned for growth.  Having entered some of the most dynamic markets in the state, we feel like opportunities exist to expand our presence within and beyond our current footprint.  Recent progress in the areas of credit culture and quality, as well as in leveraging our operational capacities, further enhances our ability to take advantage of growth opportunities as they arise.  We will continue to concentrate on the fundamental aspects of the banking business, which we believe are critical in providing competitive and sustainable returns to our shareholders, while meeting the demands of the markets we serve," concluded Mr. Giardina.

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 set forth in filings with the Securities and Exchange Commission, including the Company's Annual Report on Form 10-K.

                     THE PEOPLES BANCTRUST COMPANY, INC.
                         CONSOLIDATED BALANCE SHEETS
                               (In Thousands)

  Assets                                    September 30,      December 31,
                                                    2006              2005
                                              (unaudited)
  Cash and due from banks                        $48,359           $34,585
  Federal funds sold                                 -              14,000
      Cash and cash equivalents                   48,359            48,585

  Available-for-sale securities                  198,535           226,043

  Loans, net of unearned income                  592,242           495,509
  Allowance for loan losses                       (6,112)           (6,654)
      Loans, net                                 586,128           488,855

  Bank premises and equipment                     41,123            37,960
  Less accumulated depreciation                  (20,314)          (19,014)
      Bank premises and equipment, net            20,808            18,946

  Other real estate, net                           1,314             2,746
  Interest receivable                              5,001             3,921
  Intangible assets acquired, net                  6,478             6,634
  Deferred income taxes                            2,315             2,283
  Other assets                                    16,657            13,759
          Total assets                          $885,596          $811,773

  Liabilities and Stockholders' Equity

  Liabilities:
  Deposits:
    Demand-noninterest bearing                   $83,852           $85,538
    Demand-interest bearing                      250,650           238,010
    Savings                                       34,970            36,965
    Time                                         373,969           327,536
      Total deposits                             743,440           688,049
  Other borrowed funds                            48,530            37,732
  Interest payable                                 3,628             2,176
  Income taxes payable                             1,221               223
  Other liabilities                                2,300             2,042
      Total liabilities                          799,120           730,222

  Stockholders' equity:
    Common stock                                     591               590
    Treasury stock                                     -               (91)
    Additional paid-in capital                    17,066            16,586
    Accumulated other comprehensive loss,
     net of tax                                   (3,579)           (3,449)
    Deferred stock based compensation               (112)              (92)
    Retained earnings                             72,509            68,007
      Total stockholders' equity                  86,476            81,551
          Total liabilities and stockholders'
           equity                               $885,596          $811,773



                     THE PEOPLES BANCTRUST COMPANY, INC.
                      CONSOLIDATED STATEMENTS OF INCOME
                (In thousands except share and per share data)

                                   Three Months Ended     Nine Months Ended
                                       September 30,         September 30,
                                      2006       2005       2006       2005
                                         (unaudited)           (unaudited)
  Interest income:
   Interest and fees on loans
    and bankers acceptances        $11,721     $8,403    $31,980    $23,285
   Interest and dividends on
    investment securities:
    U.S. Government securities       1,069      1,112      3,243      3,275
    Other securities and
     interest-bearing deposits         947      1,082      2,955      3,441
   Interest on federal funds
    sold and interest bearing
    deposits in banks                  417        246        710        755

     Total interest income          14,155     10,843     38,888     30,757

  Interest expense:
   Interest on deposits              5,994      3,523     15,501      9,162
   Interest on federal funds
    purchased and other borrowed
    funds                              600        509      1,645      1,719
     Total interest expense          6,594      4,032     17,146     10,881

     Net interest income             7,562      6,811     21,743     19,876

  Provision (credit) for loan
   losses                              428        (26)      (465)      (482)

     Net interest income after
      provision (credit) for
      loan losses                    7,134      6,837     22,207     20,358

  Noninterest income:
   Trust department income             214        227        745        673
   Service charges on deposit
    accounts                         1,458      1,461      4,287      3,863
   Net securities (losses) gains         0          0        (18)        14
   Other noninterest income            646        650      1,972      2,159
     Total noninterest income        2,318      2,338      6,986      6,709

  Noninterest expense:
   Salaries and wages                2,950      3,092      8,776      9,348
   Pensions and other employee
    benefits                           887        523      2,092      1,524
   Occupancy and equipment
    expenses                         1,302      1,289      3,749      3,869
   Other noninterest expenses        1,697      1,621      4,842      5,453
     Total noninterest expense       6,836      6,525     19,459     20,194

     Income before provision for
      income taxes                   2,615      2,650      9,734      6,873

  Provision for income taxes           756        600      3,109      1,777

     Net income                     $1,860     $2,050     $6,625     $5,096
  Earnings per share
   Basic net income per share        $0.31      $0.35      $1.12      $0.88
   Diluted net income per share      $0.31      $0.35      $1.12      $0.88
   Dividends per share               $0.12      $0.11      $0.36      $0.33
   Basic weighted average number
    of shares outstanding        5,906,523  5,881,047  5,901,939  5,776,439
   Diluted weighted average
    number of shares outstanding 5,951,038  5,906,186  5,938,918  5,803,011




                     THE PEOPLES BANCTRUST COMPANY, INC.
                          SELECTED FINANCIAL RATIOS

                                       As of and for the  As of and for the
                                         quarter ended    nine months ended
                                           September 30,     September 30,
                                          2006     2005     2006     2005
                                           (unaudited)       (unaudited)

  Loans to deposits                      78.84%   70.00%   78.84%   70.00%

  Allowance for loan losses to loans      1.03%    1.47%    1.03%    1.47%

  Net charge offs to average loans        0.07%    0.10%    0.02%    0.42%

  Nonperforming assets to total assets    0.20%    0.37%    0.20%    0.37%

  Allowance for loan losses to
   nonaccrual loans                       1425%     843%    1425%     843%

  Yield on loans                          8.00%    7.10%    7.75%    6.90%

  Net interest margin                     3.70%    3.69%    3.73%    3.66%

  Noninterest income to average assets    1.06%    1.19%    1.10%    1.14%

  Noninterest expense to average assets   3.12%    3.33%    3.06%    3.42%

  Efficiency ratio                       69.19%   71.31%   67.73%   75.96%


DATASOURCE: The Peoples BancTrust Company, Inc.



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

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



Web site:  http://peoplesbt.com/ 

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