WYALUSING, Pa., Oct. 29, 2020 /PRNewswire/ -- Peoples Ltd. (OTC:PPLL). Anthony J. Gabello, President and Chief Executive Officer of Peoples Ltd., holding company for PS Bank, has announced 2020 third quarter results.
For the three months ended September 30, 2020, net income totaled $1,395,000 compared to $1,232,000 for the third quarter of 2019, an increase of $163,000 or 13.24%. Earnings per share for the quarter of $2.09 compares to third quarter 2019 of $1.85 per share as adjusted for the 2019 year-end 5% stock dividend. Net income for the nine months ended September 30, 2020 totaled $3,633,000 with earnings per share of $5.44 compared to 2019 results for the same period of $3,420,000 or $5.12 earnings per share. Strong earnings from mortgage sales and deposit repricing strategies have offset lower interest rates on earning assets as a result of the Fed's interest rate reductions to near zero, as well as additional loan loss provisioning because of the pandemic.
Annualized return on equity of 12.89% as of September 30, 2020 compares to 12.95% for the same period 2019. Return on assets of 1.15% as of September 30, 2020 compares to 1.17% for the same period in 2019.
Total assets increased by $39,701,000 or 9.9% to $441,218,000 compared to $401,517,000 as of December 31, 2019. Deposits increased $29,716,000 or 8.6% to $374,209,000 compared to $344,493,000 as of December 31, 2019. Net loans increased by $30,584,000 or 12.3% to $279,068,000 from $248,484,000 year-end 2019. Net loans include approximately 23,500,000 in Paycheck Protection Program Loans.
"Throughout the third quarter, and 2020 as a whole, PS Bankers have showed tremendous dedication and resiliency in helping to deliver strong financial results, while helping to guide our communities and small businesses forward through these unprecedented times. Third quarter income grew by 13.24% over prior year third quarter, despite an additional $245,000 in loan loss provisions over the prior year third quarter. Strong mortgage sales and deposit repricing strategies continue to drive improved performance.
Our PS Mortgage team has continued to help put customers into their dream homes, while refinancing others to take advantage of the historically low mortgage rate environment. Our commercial lending team is helping to meet business customers' needs, while also helping them to navigate through evolving Paycheck Protection Program forgiveness processes. Deferrals in our loan portfolio continue to decrease, from a high in excess of 17%, to approximately 2.3% currently. Our improved 2020 results have come despite providing additional loan loss provisions of $690,000 greater than prior year to date, as we continue to recognize the elevated risk environment caused by the ongoing pandemic.
We continue to remain focused on our customers, our communities, and our shareholders during these challenging times, and greatly appreciate the trust and faith that they have placed in our institution. We are grateful for the long-lasting relationships that we have been able to develop throughout these times. We look forward to continuing to serve our communities," Gabello commented.
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 locations throughout Bradford, Sullivan, Wyoming, Lackawanna, and Susquehanna counties. Stock of Peoples Ltd. is traded in the Over-the-Counter market under the symbol PPLL. Learn more about PS Bank at www.PSBanking.com.
SOURCE Peoples Ltd.