Peoples Bancorp Inc. reported consolidated earnings results for the fourth quarter and year ended December 31, 2012. For the quarter, interest income was $17.575 million against $18.475 million a year ago. Net interest income was $14.110 million against $13.789 million a year ago. Income before income taxes was $5.539 million against $5.177 million a year ago. Net income available to common shareholders was $3.874 million or $0.36 per basic and diluted share against $3.499 million or $0.33 per basic and diluted share a year ago. Return on average equity was 6.99% against 6.79% a year ago. Return on average assets was 0.82% against 0.84% a year ago. The improvement in net interest income was largely attributable to a full quarter's impact of the Sistersville acquisition completed late in the third quarter of 2012. Revenue growth was driven mostly by the company's strong fee-based businesses. Fourth quarter earnings impacted by other non-recurring expenses totaling $982,000.

For the year, interest income was $69.470 million against $75.133 million a year ago. Net interest income was $54.475 million against $53.979 million a year ago. Income before income taxes was $29.910 million against $17.151 million a year ago. Net income available to common shareholders was $20.385 million or $1.92 per basic and diluted share against $11.212 million or $1.07 per basic and diluted share a year ago. As on December 31, 2012, book value per share was $21.02 against $19.67 a year ago. Return on average equity was 9.52% against 5.72% a year ago. Return on average assets was 1.11% against 0.69% a year ago. 2012 earnings benefited from a sustained improvement in asset quality. As on December 31, 2012, tangible book value per share was $14.52 against $13.53 a year ago.

The company provided earnings guidance for the fiscal year 2013. As the company looks into 2013, it expects growth in fee-based revenue similar to, if not, better than what was experienced in 2012. A key driver will be a full year's impact of recent acquisitions. The company expects first quarter non-interest income to be impacted by lower annual insurance contingent income. While it is difficult to predict this amount, the company is preparing for up to a 50% reduction from the $1 million that was earned in 2012. The expected decrease is due to the major storm that hit the region in late June. In terms of overall profitability, the company is committed to generating positive operating leverage each year.

For the fourth quarter ended December 31, 2012, the company reported net-charge offs of $293,000 compared to $1,023,000 for the same period a year ago.