2012 Highlights

PEOPLE SERVING PEOPLE SINCE 1914
2012 Highlights
Peoples LTD
Peoples LTD is the holding company for PS Bank. PS Bank is an independent community bank,
established in 1914, with nine branch locations located throughout Bradford, Sullivan, and Wyoming
Counties. For stock transfers, contact Cindy Miller, AVP/Administrative Services at (570) 746-1011 or
cmiller@peoplesbankpa.com.
The mission of PS Bank is to be the leading community bank in the markets we serve, meeting
customer needs while fulfilling our fiduciary responsibility to shareholders.
Corporate Office
76 Church Street, Wyalusing, PA 18853
Phone: (570) 746-1011 | Fax: (570) 746-2229
Email: Peoples@epix.net
Shareholder Information
The Annual Meeting of Shareholders will be held on Tuesday, May 14, 2013 at 4:30 p.m. in the Tuscarora
Wayne Room, Chamber of Commerce Building, 20 Main Street, Wyalusing, PA 18853.
Market Makers
The following firms are believed to presently make a market in the Peoples LTD stock on the OTC
Bulletin Board:
Boenning & Scattergood, Inc.
(610) 832-1212
Four Tower Bridge
200 Barr Harbor Drive, Suite 300
West Conshohocken, PA 19428
Janney Montgomery Scott LLC
(215) 665-6000
1717 Arch Street
Philadelphia, PA 19103
Morgan Stanley & Co. LLC
(212) 761-4000
1585 Broadway
New York, NY 10036
Stock of Peoples LTD is listed on the OTC Bulletin Board under the symbol of PPLL.
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Our Board of Directors
Jay W. Chadwick, Chairman
President and CEO,
Tuscarora Wayne Mutual Insurance Group
John R. Snell, Vice Chairman
Retired Accountant, LaBarr & LaBarr
P. Dean Homer, Secretary
Owner, P. Dean Homer Accounting Firm and
P. Dean Homer Funeral Home
Steven W. Moore, Assistant Secretary
Owner, Moore’s Auto Sales and Moore’s RV Sales
Anthony J. Gabello
President and CEO, PS Bank
Judd B. Fitze
Attorney, Partner in the firm of Farr, Davis & Fitze
Tracy E. Keeney
Owner, B & K Equipment Co.
JoAnne C. Kizer
Owner and Real Estate Broker, JoAnne Kizer Real Estate
Donald L. Sherwood
Owner, Sherwood Chevrolet
Kenneth H. Taylor, Jr.
Partner, Century Farms LLC and
Former President, Taylor Packing Co.
Howard W. Visscher, Director Emeritus
Owner and Auctioneer, Visscher Farms
From left, front row: John R. Snell, Jay W. Chadwick, Anthony J. Gabello, Donald R. Abrey, P. Dean
Homer. Back row, from left: Kenneth H. Taylor, Jr., Howard W. Visscher, Tracy E. Keeney, JoAnne C. Kizer,
Judd B. Fitze, Donald L. Sherwood, Steven W. Moore
Donald R. Abrey - Retired Chairman
At the end of December, Donald E. Abrey retired from his role as Chairman
of the Board of Directors, having served in this capacity since 2007.
Mr. Abrey joined the Bank in 1986 as President and CEO. During his tenure,
the Bank grew in assets from $37 million to nearly $200 million, from a single
location to eight full-service branches. In 1987, Mr. Abrey was responsible
for the formation of the Bank’s holding company, Peoples LTD.
Throughout his career, Mr. Abrey has been involved as a legislative
advocate for the banking industry. He served as Chairman of the
Pennsylvania Bankers Association (PBA) from 2005-2006, Chairman
of the PBA Services Corporation and represented the PBA on the American Bankers
Association (ABA) Community Bankers Council. We wish Don all the best in his future
endeavors and treasure his dedication and professional commitment to our bank,
our customers, and our employees.
Peoples LTD - 2012 Highlights
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Message from the President
The past year was a very exciting year for our bank. In 2012, we
achieved our highest net income on record, at $2,467,000. As our
asset quality continued to improve, so did our profitability, as the
bank was able to benefit from reduced provision expenses. The
low interest rate environment allowed us to generate our largest
volume of secondary market mortgages ever. Solid loan growth
helped to offset declining loan yields due to current interest rate
levels. Our Return on Average Assets increased to 1.02% and
our Return on Average Equity rose to 11.81%. Earnings per share
increased to $5.19, up from 2011’s $3.26.
Total assets grew 5.3% to end the year at $248,732,000, primarily
attributable to loan growth of 6.2% in this period. Deposits grew
approximately 1.8% in 2012. Capital levels continue to grow
stronger.
Because of our improved financial condition, we were able to once again raise our dividend
payouts in 2012. Cash dividends for the year totaled $1.26 per share and, in the fourth quarter,
the Board declared a 5% stock dividend for the third consecutive year. This represents an
increase of 174% over 2011 as adjusted for the stock dividend.
We welcomed Attorney Judd B. Fitze to our Board of Directors this past summer. Judd is a partner
in the law firm of Farr, Davis & Fitze located in Tunkhannock. Judd brings a wealth of knowledge
of Wyoming County to our bank and will play a vital role in our growth in that market. Judd also
brings significant bank director experience with him.
In September, long time Board member Howard W. Visscher retired and assumed a Director
Emeritus position. Howard served as a Board member since 1978 and as Vice Chairman from
2001 to 2007. Howard’s contributions over the years have been invaluable. Howard will continue
to provide market insight and faithfully represent our institution through his emeritus status, and we
are grateful to him for it.
In November, we completed a successful rebranding campaign as we shortened our bank’s
name from Peoples State Bank to PS Bank. I am truly thankful for how warmly this was received
by the communities we serve. Our new look provides us with some great marketing opportunities
which we hope to keep rolling out in upcoming periods.
We completed construction of our Tunkhannock Office and opened for business in December.
We are genuinely excited about this opportunity and have been embraced by the Wyoming
County community.
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At the end of 2012, we bid farewell to long time bank President, CEO, and Chairman of the
Board, Donald R. Abrey, as he retired from the Board. Don will be missed for a long time, and
we are truly appreciative to him for his numerous contributions and leadership over the years.
Please take a moment to read a separate article we have included in this report to recognize
his many years of service to our organization.
Upon Don’s retirement, our Board appointed Jay W. Chadwick to the position of Chairman
of the Board. Jay is the President and Chief Executive Officer of Tuscarora Wayne Group of
Companies headquartered in Wyalusing, Pennsylvania. Jay served as Vice Chairman since
2007 and has served as a Board member since 2001. The Board also appointed John R. Snell to
the position of Vice Chairman. John is a licensed public accountant and retired from LaBarr &
LaBarr, a public accounting firm located in Sayre, Pennsylvania. John has served on the Board
since 2001.
Preparations have begun for our 100th anniversary in 2014. We hope to roll out some great
things in the upcoming year as we begin to ramp up for our centennial celebration. This will
truly be a special time for our bank.
As we move forward into 2013 and beyond, we recognize that our work is far from over. We
face many challenges, including interest rate margin tightening, increased regulatory burden
and competitive pressures. The banking environment in general has still not fully healed from
the well-publicized challenges which surfaced a few years ago. New challenges arise on a
daily basis. Our Board, management and employees are dedicated to maximizing the full
potential of our bank, and we will be prepared to meet these challenges head on.
On behalf of the Board of Directors, officers and employees, we thank you for your continued
support and look forward to talking to you soon.
Anthony J. Gabello
President and CEO
Peoples LTD - 2012 Highlights
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Peoples LTD and Subsidiaries - Selected Financial Data
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Peoples LTD and Subsidiaries - Consolidated Balance Sheet
Peoples LTD - 2012 Highlights
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Peoples LTD and Subsidiaries - Consolidated Statement of Income
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Peoples
LTD
and
Subsidiaries - Shareholders’ Equity Statement
Peoples Ltd.
and
Subsidiaries
Consolidated Statement of Changes in Shareholders' Equity
Years Ended December 31, 2012 and 2011
Balance, January 1, 2011
Common Stock
Shares
Amount
Treasury Stock
Shares
Amount
489,825
14,655
$ 222,961
Surplus
$ (510,835) $ 2,625,095
Net Income
Retained
Earnings
$ 15,408,290
Total
$ 13,671
1,549,214
1,549,214
Other Comprehensive Income
690,666
Purchase of Treasury Stock
13
Sale of Treasury Stock
(930)
(100)
4,592
Balance, December 31, 2011
10,706
489,825
233,667
4,592
952,834
14,568
(507,173)
3,577,929
Net Income
(215,680)
(215,680)
(970,561)
(7,021)
15,771,263
704,337
2,466,939
Other Comprehensive Income
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(229)
Balance, December 31, 2012
11,246
489,825
$ 244,913
950,329
14,575
(104,927)
(229)
Cash Dividend Declared
($1.26 per share)
5% Stock Dividend Declared
19,780,023
2,466,939
(104,927)
Purchase of Treasury Stock
690,666
(930)
Cash Dividend Declared
($.46 per share)
5% Stock Dividend Declared
$ 17,759,182
$ (507,402) $ 4,528,258
(597,648)
(597,648)
(967,783)
(6,208)
$ 16,672,771
$ 599,410
$ 21,537,950
Management's Financial Statements
Audited Financial Statements can be found on our web site www.peoplesbankpa.com
See notes to consolidated financial statements
6
Peoples LTD - 2012 Highlights
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Our Commercial Lending Team
PS Bank provides competitive lending and commercial services to businesses and
municipalities throughout the markets we serve. Our commercial lending team is committed
to the long-term business success of our new and existing clients.
William Joseph, Senior Vice President/Senior Loan Officer
42621 Route 6, Wyalusing, PA 18853
(570) 746-8780 | wjoseph@peoplesbankpa.com
As Senior Lender, Bill directs the retail and commercial lending functions of the
Bank, balancing sustained loan growth while monitoring and maintaining the
credit quality of the Bank’s loan portfolio.
Jeffery E. Aeppli, Vice President/Commercial Loan Officer
42621 Route 6, Wyalusing, PA 18853
(570) 746-8768 | jaeppli@peoplesbankpa.com
Jeff, a newcomer to the PS Bank commercial team, is a native of Bradford
County and 17 year banking veteran. Jeff is committed to providing a
quality service experience to business clients throughout Bradford and
Sullivan Counties.
Mark Mellas, Vice President/Commercial Loan Officer
802 Hunter Highway, Tunkhannock, PA 18657
(570) 996-5303 | mmellas@peoplesbankpa.com
With over 30 years in the banking industry, Mark has worked extensively in
mortgage and business lending. Mark brings this experience and superior
customer service to business clients in Wyoming and surrounding counties.
Brian Peterson, Vice President/Commercial Loan Officer
Route 6, PO Box 566, Wysox, PA 18854
(570) 268-7501 | bpeterson@peoplesbankpa.com
Brian brings a depth of experience to business clients throughout
Bradford and surrounding counties. He works closely with clients to
determine the financing needs of your business – whether for real estate,
equipment or working capital.
Christopher Brown, Assistant Vice President/Commercial Loan Officer
42621 Route 6, Wyalusing, PA 18853
(570) 746-8782 | cbrown@peoplesbankpa.com
Whether a small retail or professional business, manufacturing company or
municipality, Chris is committed to meeting the business financing needs of
his clients in Bradford and Sullivan Counties.
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Expansion in Wyoming County
In December 2012, the Bank’s ninth branch office opened for business in Tunkhannock. The project
began in January with the purchase of a two-acre outparcel adjacent to the newly constructed
Wal-Mart. Soon after a July groundbreaking, The Milnes Company began construction of the 4,000
square foot facility in Eaton Township.
The branch office, designed by Architect Thomas C. Horlacher, reflects the historical integrity of the
Bank with amenities to include dual drive up lanes, drive up ATM, and a night depository. The interior
was designed to accommodate customers and bank personnel as the branch continues to grow.
Now open for business at 802 Hunter Highway in Tunkhannock!
Tunkhannock Staff includes:
Mark Mellas, Commercial Loan Officer
Lauren Haraschak, Teller
Craig Tupper, Branch Manager
Vickie Ide, Teller
Charlotte Severcool, Customer Service
Sharon Neumane, Teller
Cheryl Traver, Teller
Our Advisory Boards
Our Advisory Board Members play an integral part in understanding the financial needs of the
communities and customers we serve.
Sayre/Ulster
Sullivan County
Towanda/Wysox
JoAnne C. Kizer, Director
John R. Snell, Director
Charles C. Carver, Jr.
Minh Phuong Dang
Marlene C. Rohe
Michael G. Shaw
P. Dean Homer, Director
Mary M. Cosgrove
Robert A. Hurley, Sr.
William F. Saxe
Julie M. Gavitt Shaffer
John A. Shoemaker
Steven W. Moore, Director
Sue A. Flynn
Joan M. Hudyncia
Nicholas J. Hurley
Christopher D. Jones
Boyd G. Rowe
Peoples LTD - 2012 Highlights
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Our Corporate Officers
Anthony J. Gabello
President and CEO
Wyalusing - Route 6 Office
42621 Route 6, PO Box 217, Wyalusing, PA 18853
Ph. 570-746-1011 | Fax: 570-746-3175
Senior Vice President
Philip O. Farr
Chief Financial Officer
William M. Joseph
Senior Loan Officer
Valerie W. Kinney
Retail Sales and
Marketing Manager
Wysox
Route 6, PO Box 566, Wysox, PA 18854
Ph. 570-268-5068 | Fax: 570-265-3680
Eagles Mere
Vice President
Jeffery E. Aeppli
Our Branch Locations
Commercial Loan Officer
Michael J. Gagliardi Loan Workout Officer
Bette R. Howell
Chief Compliance/
Security Officer
Kathryn A. Lantz
Organization Support
Tammy K. McCauley Mortgage/Consumer
Lending Manager
296 Eagles Mere Avenue, PO Box 25,
Eagles Mere, PA 17731
Ph. 570-525-3223 | Fax: 570-525-3593
Ulster
24059 Route 220, PO Box 376, Ulster, PA 18850
Ph. 570-358-3252 | Fax: 570-358-0123
Dushore
Mark E. Mellas
Commercial Loan Officer
Brian R. Peterson
Commercial Loan Officer
202 S. Turnpike Street, PO Box 300,
Dushore, PA 18614
Ph. 570-928-8151 | Fax: 570-928-8206
James L. Souto
Chief Administrative Officer
Factoryville
Assistant Vice President
Peggy A. Beckwith
Office Supervisor
118 College Ave, PO Box 598,
Factoryville, PA 18419
Ph. 570-945-2700 | Fax: 570-945-2703
Christopher C. Brown Commercial Loan Officer
Sayre
Mary Lansberry
Loan Administration
Manager
205 W. Lockhart Street, Sayre, PA 18840
Ph: 570-888-9850 | Fax: 570-888-9856
Cynthia A. Miller
Administrative Services and
Human Resources
Coordinator
North Towanda
Tammy L. Schaeffer
IT Manager
Chad R. Smith
Branch Manager
Marsha J. Stoddard
Consumer Loan Officer
Karen C. Stroud
Consumer Loan Officer
Tari K. Trowbridge
CFP®, CLU, MBA
Financial Consultant,
LPL Financial
Craig A. Tupper
Branch Manager
90 Colonial Drive, PO Box 48, Towanda, PA 18848
Ph. 570-268-5830 | Fax: 570-268-5844
Tunkhannock
802 Hunter Highway, Tunkhannock, PA 18657
Ph. 570-996-5300 | Fax: 570-996-2943
Toll Free: 866-746-1011
www.PeoplesBankPA.com
Equal Housing Lender.
Member FDIC.