2015 Q2 Earnings

Anthony J. Gabello, President and Chief Executive Officer of Peoples LTD, holding company for PS Bank, has announced 2015 second quarter results.

For the three months ended June 30, 2015, net income totaled $774,000 compared to $840,000 for the second quarter of 2014, a decrease of $66,000 or 7.86%. Earnings for the second quarter of 2014 included a reduction in the bank’s allowance of $400,000, with a net tax effect of $284,000. Excluding this reversal, net income for the three months ended June 30, 2015 increased by $218,000, a 39.2% increase over the three months ended June 30, 2014. Earnings per share for the quarter of $1.47 compares to second quarter 2014 of $1.60 per share as adjusted for the 2014 year-end 5% stock dividend.

Net income for the six months ended June 30, 2015 totaled $1,494,000 with earnings per share of $2.85. Net income and earnings per share for the same period 2014 were equal to the 2015 results of $1,494,000 and $2.85, respectively. Excluding the second quarter 2014 reversal, year to date 2015 net income increased by $284,000, or 23.5% over 2014 levels.

Annualized return on equity of 11.82% as of June 30, 2015 compares to 13.09% for the same period 2014. Return on assets of 1.00% as of June 30, 2015 compares to 1.06% for the same period in 2014.

Total assets decreased by $323,000 or 0.11% to $298,961,000 compared to $299,284,000 as of December 31, 2014. Deposits decreased $1,189,000 or 0.46% to $256,347,000 compared to $257,535,000 as of December 31, 2014. Net loans increased by $2,038,000 or 1.12% to $183,690,000 from $181,652,000 year ending 2014.

“Earnings for the first half of 2015 were strong. Excluding the allowance reduction that we recognized in 2014, 2015 earnings to date have soundly outpaced 2014 levels. Earnings performance has continued to improve despite the many challenges we face. Asset size and deposits fell slightly through the first six months of the 2015 year, which we attribute to the recent slowdown in the gas industry, combined with strategic asset / liability management designed to maintain / increase overall bank profitability” stated Mr. Gabello.

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, established 1914, with branch locations throughout Bradford, Sullivan and Wyoming Counties. Stock of Peoples LTD has a book value of $49.26 as of June 30, 2015. Stock of Peoples LTD is traded in the Over-the-Counter market under the symbol PPLL.

PS Bank is a full-service financial institution with branches throughout Northeastern and North Central Pennsylvania.