EXHIBIT 99
| PEOPLES BANCORP INC. – P.O. BOX 738 MARIETTA, OH 45750 www.peoplesbancorp.com |
NEWS RELEASE
FOR IMMEDIATE RELEASE | Contact: | Carol A. Schneeberger | |
| October 24, 2007 | | Chief Financial Officer and Treasurer | |
| | | (740) 373-3155 | |
PEOPLES BANCORP INC. REPORTS THIRD QUARTER 2007 RESULTS _____________________________________________________________________
MARIETTA, Ohio - Peoples Bancorp Inc. (“Peoples”) (NASDAQ: PEBO) announced third quarter 2007 net income of $5.1 million, or $0.49 per diluted share. This compares to net income of $5.3 million and diluted earnings per share of $0.50 for the third quarter of 2006. On a year-to-date basis, net income totaled $16.1 million and diluted earnings per share were $1.52 through September 30, 2007, versus $16.8 million and $1.57 a year ago.
Peoples’ third quarter 2007 earnings were reduced by a $675,000 ($439,000 after-tax) other-than-temporary impairment charge related to a collateralized debt obligation investment security, which is comprised of bank-issued trust preferred securities and other debt obligations issued by financial services companies. This impairment charge was the result of a decline in the credit worthiness of a single underlying issuer during the third quarter of 2007. In comparison, third quarter 2006 earnings included a $232,000 ($151,000 after-tax) gain from the sale of a banking office.
“Overall, third quarter operating results were strong based upon increased insurance and investment revenues, reduced expenses and a decrease in non-performing loans,” commented Mark F. Bradley, President and Chief Executive Officer. “Unfortunately, these positive trends were offset by the one-time impairment charge and the impact of recent loan payoffs that limited net interest income growth.”
Third quarter net interest income was up 2% year-over-year, totaling $13.2 million versus $12.9 million, while net interest margin expanded 6 basis points to 3.26%. These improvements were the result of higher yields on earning assets, coupled with lower overall funding costs attributable to retail deposit growth that allowed Peoples to reduce the amount of higher-costing wholesale funds. Compared to the second quarter of 2007, average loan balances decreased $25.0 million in the third quarter, due primarily to the impact of second quarter commercial loan payoffs. The payoffs were the primary causes of the lower net interest income and margin during the same period. The impact of those payoffs was offset by purchases of investment securities, at lower yields compared to the loans they replaced, resulting in a $31.0 million increase in average investments over the second quarter of 2007. On a year-to-date basis, net interest income increased 1% and net interest margin was unchanged at 3.29%.
“Our net interest income and margin levels were in line with our expectations, considering the increased volume of loan payoffs, competitive factors and the challenging interest rate environment,” said Carol A. Schneeberger, Chief Financial Officer and Treasurer. “While the slope of the yield curve has recently steepened due to the Federal Reserve’s actions to lower short-term interest rates, we believe our ability to grow net interest income and expand our margin in the near term will be limited by competitive pricing of new loans and deposits, as well as the repricing of some liabilities at potentially higher rates.”
Total non-interest income increased 5% in the third quarter to $7.7 million, compared to $7.3 million a year ago, and was up 3% through nine months of 2007 versus the same period in 2006. These increases were due to stronger revenue growth in several key areas, which outpaced a slight decline in deposit account service charges. Trust and investment income experienced a 23% gain over the third quarter of 2006 and grew 17% on a year-to-date basis. Over the last twelve months, assets under management grew 13% from the addition of seasoned sales personnel, coupled with an increase in cross sales from retail banking operations. In the third quarter of 2007, insurance commissions were up 9% from the prior year, as new production more than offset the impact of lower pricing margins within the insurance industry, although lower performance based insurance commissions earned in the first quarter of 2007 have tempered the overall increase in insurance commissions for 2007. Throughout 2007, the volume of debit card transactions has increased steadily, resulting in double-digit growth in both third quarter 2007 and year-to-date e-banking revenues of 11% and 14%, respectively, compared to the same periods last year. Deposit account service charges, although down year-over-year, were up 5% in the third quarter of 2007 versus the second quarter of 2007, from ongoing efforts to limit fee waivers.
Non-interest expense was $12.6 million for the third quarter of 2007, down slightly from the third quarter of 2006, due to reductions in various operating costs. Net occupancy and equipment costs decreased 10% due to lower depreciation, utilities and maintenance costs. Lower costs associated with Peoples’ deposit direct mail marketing and gift program accounted for most of the 12% decline in third quarter marketing expense. Partially offsetting these declines were increased salaries and benefit costs from higher sales-based compensation expense and bankcard costs reflecting increased customer activity, although these additional costs were more than offset than by the related growth in insurance and investment income and e-banking revenue. Compared to the second quarter of 2007, salaries and benefits were down 4%, with much of this decrease due to severance costs of approximately $100,000 incurred during the second quarter of 2007 and lower incentive compensation earned during the third quarter.
“We are pleased with our ability to increase revenues without a proportional increase in operating expenses,” added Schneeberger. “Although we experienced modest increases in both salaries and benefit costs and bankcard costs, we believe these additional costs are reasonable considering the strong increase in related revenues.”
For the nine months ended September 30, 2007, Peoples’ effective tax rate was 25.8%, down from 26.7% in the first half of 2007 and 26.6% through nine months of 2006. The reduction in the effective tax rate was attributable to utilization of additional tax credits in 2007. The effective tax rate of 25.8% through nine months of 2007 represents management’s current estimate for the full year 2007.
During the third quarter of 2007, gross portfolio loan balances decreased $1.8 million, to $1.11 billion at quarter-end, due to commercial loan payoffs exceeding new originations. Peoples’ consumer lending activities produced another strong quarter, with total loan balances, excluding overdrafts, up 4% for the third quarter to $80.7 million. At September 30, 2007, Peoples’ serviced loan portfolio had increased to $176.4 million, up 9% since year-end 2006.
“We continued to experience higher than normal commercial loan payoffs in the third quarter, even though new loan production remained steady,” said Schneeberger. “Our lenders are seeking to capitalize on lending opportunities in our more dynamic markets and grow loans without sacrificing quality. However, ongoing aggressive competition for new loans from the capital markets and other financial institutions may limit any near-term net loan growth.”
In the third quarter of 2007, Peoples’ provision for loan losses was $967,000, compared to $847,000 last quarter and $929,000 for the third quarter of 2006. Net loan charge-offs were $1,018,000 in the third quarter of 2007 versus $668,000 last quarter and $126,000 in the third quarter of 2006. Most of the linked quarter increase was the result of net real estate loan charge-offs, which totaled $232,000 in the third quarter versus net recoveries of $14,000 in the prior quarter. At September 30, 2007, nonperforming loans totaled $6.2 million, or 0.56% of total loans, compared to $7.4 million, or 0.67%, at June 30, 2007, and $10.0 million, or 0.88%, at year-end 2006. The allowance for loan losses was $14.6 million, or 237.3% of nonperforming loans, at quarter-end, versus 198.3% and 145.0% at June 30, 2007, and December 31, 2006, respectively.
“During the third quarter, we experienced higher volumes of checking overdraft protection that produced an increase in the related allowance and corresponding provision,” continued Schneeberger. “The remaining increase reflects a modest increase in overall losses estimated to be inherent in the loan portfolio. Still, we believe asset quality remained good at quarter-end, as loans past due 30 days or more were only 1.25% of total loans and non-performing asset comprised 0.34% of total assets.”
Compared to June 30, 2007, retail deposit balances, which exclude brokered deposits, declined $10.5 million, with interest-bearing and non-interest bearing deposits decreasing $8.2 million and $2.3 million, respectively. Since year-end 2006, retail deposits have grown $21.6 million, due to a 13% annualized growth in money market balances and 7% annualized growth in interest-bearing demand deposits. During this same period, Peoples used retail deposit growth and lower cost alternative funding sources to reduce brokered deposits by $71.6 million.
Through nine months of 2007, Peoples repurchased a total of 379,000 common shares at an average price of $26.64, representing 89% of the total amount authorized under the 2007 Stock Repurchase Plan. During the same period in 2006, Peoples repurchased 14,000 common shares at an average price of $28.00.
Earlier this year, Peoples announced plans to open a new financial services office in Huntington, West Virginia. This new office, scheduled to open in November, will provide customers with access to the complete array of Peoples’ investment, insurance and banking services.
“Overall, we are pleased with the third quarter results, which reflect our efforts to diversify our revenue streams and minimize expense growth to help lessen the impact of uncertain interest rate conditions,” summarized Bradley.
Peoples Bancorp Inc. is a diversified financial products and services company with $1.9 billion in assets, 50 locations and 37 ATMs in Ohio, West Virginia and Kentucky. Peoples makes available a complete line of banking, investment, insurance, and trust solutions through its financial service units – Peoples Bank, National Association; Peoples Financial Advisors (a division of Peoples Bank) and Peoples Insurance Agency, Inc. Peoples’ common shares are traded on the NASDAQ Global Select Market under the symbol “PEBO”, and Peoples is a member of the Russell 3000 index of US publicly traded companies. Learn more about Peoples at www.peoplesbancorp.com.
Conference Call to Discuss Earnings:
Peoples will conduct a facilitated conference call to discuss second quarter results of operations today at 11:00 a.m. eastern daylight time, with members of Peoples’ executive management participating. Analysts, media and individual investors are invited to participate in the conference call by calling (877) 407-8033. A simultaneous Webcast of the conference call audio will be available online via the “Investor Relations” section of Peoples’ website, www.peoplesbancorp.com. Participants are encouraged to call or sign in at least 15 minutes prior to the scheduled conference call time to ensure participation and, if required, download and install the necessary software. A replay of the call will be available on Peoples’ website in the “Investor Relations” section for one year.
Safe Harbor Statement:
This news release may contain certain forward-looking statements with respect to Peoples’ financial condition, results of operations, plans, objectives, future performance and business. Except for the historical and present factual information contained in this news release, the matters discussed in this news release, and other statements identified by words such as “feel,” “expect,” “believe,” “plan,” “will,” “would,” “should,” “could” and similar expressions are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Rule 175 promulgated thereunder, and Section 21E of the Securities Exchange Act of 1934, as amended, and Rule 3b-6 promulgated thereunder. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially. Factors that might cause such a difference include, but are not limited to: (1) competitive pressures among financial institutions or from non-financial institutions, which may increase significantly; (2) changes in the interest rate environment, which may adversely impact interest margins; (3) prepayment speeds, loan originations and sale volumes, charge-offs and loan loss provisions, which may be less favorable than expected; (4) general economic conditions, either national or in the states in which Peoples and its subsidiaries do business, which may be less favorable than expected; (5) political developments, wars or other hostilities, which may disrupt or increase volatility in securities markets or other economic conditions; (6) legislative or regulatory changes or actions, which may adversely affect the business of Peoples and its subsidiaries; (7) changes in the conditions and trends in the securities markets; (8) a delayed or incomplete resolution of regulatory issues that could arise; (9) the impact of reputational risk created by these developments on such matters as business generation and retention, funding and liquidity; (10) the costs and effects of regulatory and legal developments, including the outcome of regulatory or other governmental inquiries and legal proceedings and results of regulatory examinations; and (11) other risk factors relating to the banking industry or Peoples as detailed from time to time in Peoples’ reports filed with the Securities and Exchange Commission (“SEC”), including those risk factors included in the disclosures under the heading “ITEM 1A. RISK FACTORS” of Peoples’ Annual Report on Form 10-K for the fiscal year ended December 31, 2006 and under the heading “ITEM 1A: RISK FACTORS” of Part II of Peoples’ Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2007. Peoples undertakes no obligation to update these forward-looking statements to reflect events or circumstances after the date of this news release or to reflect the occurrence of unanticipated events, except as required by applicable legal requirements. Copies of documents filed with the SEC are available free of charge at the SEC’s website at http://www.sec.gov and/or from Peoples’ website.
PEOPLES BANCORP INC. (NASDAQ: PEBO)
PER SHARE DATA AND PERFORMANCE RATIOS
| | | Three Months Ended | | | Nine Months Ended | |
| | | September 30, | | | June 30, | | | September 30, | | | September 30, | |
(in $000’s, except per share data) | | 2007 | | | 2007 | | | 2006 | | | 2007 | | | 2006 | |
| Net income per share: | | | | | | | | | | | | | | | |
| Basic | | $ | 0.49 | | | $ | 0.51 | | | $ | 0.50 | | | $ | 1.53 | | | $ | 1.59 | |
| Diluted | | $ | 0.49 | | | $ | 0.51 | | | $ | 0.50 | | | $ | 1.52 | | | $ | 1.57 | |
| Cash dividends declared per share | | $ | 0.22 | | | $ | 0.22 | | | $ | 0.21 | | | $ | 0.66 | | | $ | 0.62 | |
| Book value per share | | $ | 19.25 | | | $ | 18.78 | | | $ | 18.46 | | | $ | 19.25 | | | $ | 18.46 | |
| Tangible book value per share (a) | | $ | 12.63 | | | $ | 12.19 | | | $ | 11.99 | | | $ | 12.63 | | | $ | 11.99 | |
| Closing stock price at end of period | | $ | 26.18 | | | $ | 27.07 | | | $ | 29.23 | | | $ | 26.18 | | | $ | 29.23 | |
| Dividend payout as a percentage of net income | | | 44.83 | % | | | 43.41 | % | | | 42.31 | % | | | 43.10 | % | | | 39.38 | % |
| Return on average equity (b) | | | 10.27 | % | | | 10.81 | % | | | 11.05 | % | | | 10.88 | % | | | 11.97 | % |
| Return on average assets (b) | | | 1.09 | % | | | 1.16 | % | | | 1.13 | % | | | 1.15 | % | | | 1.20 | % |
| Efficiency ratio (c) | | | 57.03 | % | | | 58.68 | % | | | 59.04 | % | | | 58.06 | % | | | 57.30 | % |
| Net interest margin (fully-tax equivalent) (b) | | | 3.26 | % | | | 3.31 | % | | | 3.20 | % | | | 3.29 | % | | | 3.29 | % |
| | | | | | | | | | | | | | | | | | | | | |
| (a) | Excludes the balance sheet impact of intangible assets acquired through acquisitions. |
| (b) | Ratios are presented on an annualized basis. |
| (c) | Non-interest expense (less intangible amortization) as a percentage of fully tax-equivalent net interest income plus non-interest income (less securities and asset disposal gains/losses) |
PEOPLES BANCORP INC. CONSOLIDATED STATEMENTS OF INCOME
| | Three Months Ended | | Nine Months Ended |
| | September 30, | | September 30, |
(in $000’s) | 2007 | | 2006 | | 2007 | | 2006 |
| Interest income | $ 28,241 | | $ 27,649 | | $ 84,681 | | $ 80,403 |
| Interest expense | 15,089 | | 14,706 | | 44,675 | | 40,652 |
| Net interest income | 13,152 | | 12,943 | | 40,006 | | 39,751 |
| Provision for loan losses | 967 | | 929 | | 2,437 | | 1,770 |
| Net interest income after provision for loan losses | 12,185 | | 12,014 | | 37,569 | | 37,981 |
| | | | | | | | |
| Net (loss) gain on investment securities | (613) | | 2 | | (575) | | 6 |
| Net gain (loss) on asset disposals | 42 | | (6) | | 76 | | 34 |
| Net gain on sale of banking office | - | | 232 | | - | | 232 |
| | | | | | | | |
| Non-interest income: | | | | | | | |
Service charges on deposits | 2,562 | | 2,682 | | 7,375 | | 7,747 |
Insurance commissions | 2,199 | | 2,022 | | 7,559 | | 7,448 |
Trust and investment income | 1,211 | | 984 | | 3,639 | | 3,104 |
Electronic banking revenues | 879 | | 792 | | 2,607 | | 2,288 |
Business owned life insurance | 418 | | 404 | | 1,237 | | 1,209 |
Mortgage banking income | 251 | | 165 | | 722 | | 578 |
Other | 174 | | 273 | | 589 | | 627 |
Total non-interest income | 7,694 | | 7,322 | | 23,728 | | 23,001 |
| Non-interest expense: | | | | | | | |
Salaries and benefits | 6,603 | | 6,445 | | 20,770 | | 19,789 |
Net occupancy and equipment | 1,233 | | 1,377 | | 3,917 | | 3,829 |
Data processing and software | 530 | | 457 | | 1,594 | | 1,401 |
Amortization of intangible assets | 478 | | 556 | | 1,467 | | 1,705 |
Professional fees | 469 | | 547 | | 1,714 | | 1,822 |
Franchise taxes | 449 | | 445 | | 1,336 | | 1,336 |
Bankcard costs | 389 | | 333 | | 1,143 | | 940 |
Marketing | 350 | | 398 | | 1,078 | | 1,286 |
Other | 2,098 | | 2,208 | | 6,072 | | 6,281 |
Total non-interest expense | 12,599 | | 12,766 | | 39,091 | | 38,389 |
| Income before income taxes | 6,709 | | 6,798 | | 21,707 | | 22,865 |
| Income tax expense | 1,594 | | 1,476 | | 5,597 | | 6,076 |
Net income | $ 5,115 | | $ 5,322 | | $ 16,110 | | $ 16,789 |
| | | | | | | | |
| Net income per share: | | | | | | | |
Basic | $ 0.49 | | $ 0.50 | | $ 1.53 | | $ 1.59 |
Diluted | $ 0.49 | | $ 0.50 | | $ 1.52 | | $ 1.57 |
| | | | | | | | |
| Cash dividends declared per share | $ 0.22 | | $ 0.21 | | $ 0.66 | | $ 0.62 |
| | | | | | | | |
| Weighted average shares outstanding: | | | | | | | |
Basic | 10,421,548 | | 10,638,824 | | 10,502,866 | | 10,587,462 |
Diluted | 10,483,657 | | 10,748,996 | | 10,573,934 | | 10,709,312 |
| | | | | | | | |
| Actual shares outstanding (end of period) | 10,363,397 | | 10,664,603 | | 10,363,397 | | 10,664,603 |
PEOPLES BANCORP INC. CONSOLIDATED BALANCE SHEETS
| | September 30, | | December 31, |
(in $000’s) | 2007 | | 2006 |
| | | | |
ASSETS | | | |
| Cash and cash equivalents: | | | |
| Cash and due from banks | $ 34,087 | | $ 35,405 |
| Interest-bearing deposits in other banks | 1,489 | | 1,101 |
| Federal funds sold | - | | 3,300 |
Total cash and cash equivalents | 35,576 | | 39,806 |
| | | | |
| Available-for-sale investment securities, at estimated fair value (amortized cost | | |
| of $591,032 at September 30, 2007 and $550,239 at December 31, 2006) | 590,737 | | 548,733 |
| | | | |
| Loans, net of unearned interest | 1,106,621 | | 1,132,394 |
| Allowance for loan losses | (14,641) | | (14,509) |
| Net loans | 1,091,980 | | 1,117,885 |
| | | | |
| Loans held for sale | 656 | | 1,041 |
| Bank premises and equipment, net of accumulated depreciation | 22,584 | | 23,455 |
| Business owned life insurance | 49,867 | | 48,630 |
| Goodwill | 62,520 | | 61,373 |
| Other intangible assets | 6,008 | | 7,479 |
| Other assets | 27,977 | | 26,853 |
TOTAL ASSETS | $ 1,887,905 | | $ 1,875,255 |
| | | | |
LIABILITIES | | | |
| Non-interest-bearing deposits | $ 171,319 | | $ 170,921 |
| Interest-bearing deposits | 1,012,174 | | 1,062,608 |
| Total deposits | 1,183,493 | | 1,233,529 |
| | | | |
| Federal funds purchased, securities sold under repurchase agreements, | | | |
| and other short-term borrowings | 249,047 | | 194,883 |
| Long-term borrowings | 214,414 | | 200,793 |
| Junior subordinated notes held by subsidiary trusts | 22,452 | | 29,412 |
| Accrued expenses and other liabilities | 19,052 | | 19,469 |
TOTAL LIABILITIES | 1,688,458 | | 1,678,086 |
| | | | |
STOCKHOLDERS’ EQUITY | | | |
| Common stock, no par value (24,000,000 shares authorized, 10,915,648 shares | | |
| issued at September 30, 2007, and 10,889,242 shares issued at December 31, 2006) | 163,240 | | 162,654 |
| Retained earnings | 52,606 | | 43,439 |
| Accumulated comprehensive loss, net of deferred income taxes | (2,130) | | (2,997) |
| Treasury stock, at cost (552,251 shares at September 30, 2007, and | | | |
| 237,257 shares at December 31, 2006) | (14,269) | | (5,927) |
TOTAL STOCKHOLDERS’ EQUITY | 199,447 | | 197,169 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 1,887,905 | | $ 1,875,255 |
| | | | |
PEOPLES BANCORP INC. SELECTED FINANCIAL INFORMATION
| | September 30, | June 30, | | March 31, | | December 31, | September 30, |
(in $000’s, end of period) | 2007 | | 2007 | | 2007 | | 2006 | | 2006 |
| | | | | | | | | | |
LOAN PORTFOLIO | | | | | | | | | |
| Commercial, mortgage | $ 481,341 | | $ 468,241 | | $ 477,189 | | $ 469,934 | | $ 488,278 |
| Commercial, other | 174,753 | | 177,651 | | 195,612 | | 191,847 | | 194,227 |
| Real estate, construction | 83,714 | | 96,690 | | 97,116 | | 99,311 | | 81,572 |
| Real estate, mortgage | 284,105 | | 286,198 | | 290,514 | | 297,663 | | 299,444 |
| Consumer | 82,708 | | 79,629 | | 75,194 | | 73,639 | | 76,331 |
| Total loans | 1,106,621 | | 1,108,409 | | 1,135,625 | | 1,132,394 | | 1,139,852 |
| | | | | | | | | | |
DEPOSIT BALANCES | | | | | | | | | |
| Interest-bearing deposits: | | | | | | | | | |
| Retail certificates of deposit | $ 515,432 | | $ 517,910 | | $ 528,543 | | $ 514,885 | | $ 498,564 |
| Interest-bearing transaction accounts | 178,880 | | 179,430 | | 182,164 | | 170,022 | | 180,124 |
| Money market deposit accounts | 147,848 | | 149,791 | | 145,073 | | 134,387 | | 136,344 |
| Savings accounts | 112,507 | | 115,691 | | 119,153 | | 114,186 | | 119,462 |
| Brokered certificates of deposits | 57,507 | | 66,601 | | 70,535 | | 129,128 | | 126,605 |
Total interest-bearing deposits | 1,012,174 | | 1,029,423 | | 1,045,468 | | 1,062,608 | | 1,061,099 |
| Non-interest-bearing deposits | 171,319 | | 173,675 | | 172,122 | | 170,921 | | 166,505 |
| Total deposits | 1,183,493 | | 1,203,098 | | 1,217,590 | | 1,233,529 | | 1,227,604 |
| | | | | | | | | | |
ASSET QUALITY | | | | | | | | | |
| Nonperforming assets: | | | | | | | | | |
| Loans 90 days or more past due | $ 190 | | $ 313 | | $ – | | $ 1 | | $ 177 |
| Renegotiated loans | – | | – | | – | | 1,218 | | 810 |
| Nonaccrual loans | 5,979 | | 7,096 | | 6,015 | | 8,785 | | 13,227 |
Total nonperforming loans | 6,169 | | 7,409 | | 6,015 | | 10,004 | | 14,214 |
| Other real estate owned | 343 | | 213 | | 50 | | - | | 34 |
Total nonperforming assets | $ 6,512 | | $ 7,622 | | $ 6,065 | | $ 10,004 | | $ 14,248 |
| | | | | | | | | | |
| Allowance for loan losses as a percent of | | | | | | | | | |
| nonperforming loans | 237.3% | | 198.3% | | 241.3% | | 145.0% | | 113.5% |
| Nonperforming loans as a percent of total loans | 0.56% | | 0.67% | | 0.53% | | 0.88% | | 1.25% |
| Nonperforming assets as a percent of total assets | 0.34% | | 0.41% | | 0.32% | | 0.53% | | 0.76% |
| Nonperforming assets as a percent of total loans and | | | | | | | | |
| other real estate owned | 0.59% | | 0.69% | | 0.53% | | 0.88% | | 1.25% |
| Allowance for loan losses as a percent of total loans | 1.32% | | 1.33% | | 1.28% | | 1.28% | | 1.42% |
| | | | | | | | | | |
REGULATORY CAPITAL (a) | | | | | | | | | |
| Tier 1 risk-based capital | 11.77% | | 11.75% | | 11.93% | | 11.98% | | 11.72% |
| Total risk-based capital ratio (Tier 1 and Tier 2) | 12.98% | | 12.98% | | 13.12% | | 13.17% | | 13.02% |
| Leverage ratio | 8.67% | | 8.68% | | 8.91% | | 8.90% | | 8.79% |
| Tier 1 capital | $ 156,209 | | $ 155,362 | | $ 161,171 | | $ 161,439 | | $ 159,214 |
| Total capital (Tier 1 and Tier 2) | $ 172,311 | | $ 171,593 | | $ 177,260 | | $ 177,524 | | $ 176,856 |
| Total risk-weighted assets | $ 1,327,532 | | $ 1,322,385 | | $ 1,351,237 | | $ 1,347,819 | | $ 1,358,074 |
(a) September 30, 2007 data based on preliminary analysis and subject to revision.
PEOPLES BANCORP INC. PROVISION FOR LOAN LOSSES INFORMATION
| | Three Months Ended | | Nine Months Ended |
| | September 30, | June 30, | | September 30, | September 30, |
(in $000’s) | 2007 | | 2007 | | 2006 | | 2007 | | 2006 |
PROVISION FOR LOAN LOSSES | | | | | | | | | |
| Provision for Overdraft Privilege losses | $ 227 | | $ 136 | | $ 254 | | $ 386 | | $ 560 |
| Provision for other loan losses | 740 | | 711 | | 675 | | 2,051 | | 1,210 |
| Total provision for loan losses | $ 967 | | $ 847 | | $ 929 | | $ 2,437 | | $ 1,770 |
| | | | | | | | | | |
NET CHARGE-OFFS | | | | | | | | | |
| Gross charge-offs | $ 1,251 | | $ 965 | | $ 628 | | $ 3,861 | | $ 1,802 |
| Recoveries | 233 | | 297 | | 502 | | 1,556 | | 1,446 |
| Net charge-offs | $ 1,018 | | $ 668 | | $ 126 | | $ 2,305 | | $ 356 |
| | | | | | | | | | |
NET CHARGE-OFFS (RECOVERIES) BY TYPE | | | | | | | | | |
| Commercial | $ 472 | | $ 523 | | $ (155) | | $ 1,283 | | $ (116) |
| Real estate | 232 | | (14) | | (29) | | 231 | | (141) |
| Overdrafts | 207 | | 133 | | 234 | | 392 | | 511 |
| Consumer | 107 | | 29 | | 77 | | 404 | | 106 |
| Credit card | - | | (3) | | (1) | | (5) | | (4) |
| Total net charge-offs | $ 1,018 | | $ 668 | | $ 126 | | $ 2,305 | | $ 356 |
| | | | | | | | | | |
| Net charge-offs as a percent of loans (annualized) | 0.36% | | 0.24% | | 0.04% | | 0.27% | | 0.04% |
PEOPLES BANCORP INC. SUPPLEMENTAL INFORMATION
| September 30, | | June 30, | | March 31, | | December 31, | | September 30, |
| (in $000’s, end of period) | 2007 | | 2007 | | 2007 | | 2006 | | 2006 |
| | | | | | | | | | |
| Trust assets under management | $ 805,931 | | $ 766,417 | | $ 744,939 | | $ 736,745 | | $ 724,925 |
| Brokerage assets under management | $ 126,773 | | $ 118,058 | | $ 109,343 | | $ 103,814 | | $ 98,208 |
| Mortgage loans serviced for others | $ 176,380 | | $ 172,314 | | $ 165,728 | | $ 162,511 | | $ 157,944 |
| Employees (full-time equivalent) | 553 | | 556 | | 560 | | 547 | | 552 |
| Announced treasury share plans: (a) | | | | | | | | | |
| Total shares authorized for plan | 425,000 | | 425,000 | | 425,000 | | 425,000 | | 425,000 |
| Shares purchased | 139,000 | | 70,000 | | 170,000 | | 23,800 | | - |
| Average price | $ 24.05 | | $ 26.79 | | $ 28.70 | | $ 28.55 | | $ - |
(a) 2007 data reflects the 2007 Stock Repurchase Program authorizing the repurchase of up to 425,000 common shares.
2006 data reflects the 2006 Stock Repurchase Program authorizing the repurchase of up to 425,000 common shares.
The number of common shares purchased for treasury and average price paid are presented for the three-month period
ended on the date indicated.
PEOPLES BANCORP INC. CONSOLIDATED AVERAGE BALANCE SHEET AND NET INTEREST INCOME
| | Three Months Ended |
| | September 30, 2007 | | June 30, 2007 | | September 30, 2006 |
(in $000’s) | Balance | Income/ Expense | Yield/ Cost | Balance | Income/ Expense | Yield/ Cost | Balance | Income/ Expense | Yield/ Cost |
ASSETS | | | | | | | | | | | |
| Short-term investments | $ 4,035 | $ 50 | 4.91% | | $ 3,505 | $ 44 | 4.98% | | $ 4,291 | $ 53 | 4.96% |
| Investment securities (a) | 571,632 | 7,590 | 5.31% | | 540,614 | 6,820 | 5.05% | | 562,382 | 7,151 | 5.09% |
| Gross loans (a) | 1,105,592 | 21,008 | 7.55% | | 1,130,555 | 21,540 | 7.64% | | 1,123,290 | 20,858 | 7.38% |
| Allowance for loan losses | (14,662) | | | | (14,656) | | | | (15,507) | | |
| Total earning assets | 1,666,597 | 28,648 | 6.84% | | 1,660,018 | 28,404 | 6.86% | | 1,674,456 | 28,062 | 6.67% |
| | | | 6.86% | | | | 6.86% | | | | |
| Intangible assets | 68,754 | | | | 68,142 | | | | 69,332 | | |
| Other assets | 129,015 | | | | 128,315 | | | | 129,434 | | |
| Total assets | 1,864,366 | | | | 1,856,475 | | | | 1,873,222 | | |
| | | | | | | | | | | | |
LIABILITIES AND EQUITY | | | | | | | | | | | |
| Interest-bearing deposits: | | | | | | | | | | | |
| Savings | 113,740 | 190 | 0.66% | | 117,149 | 188 | 0.64% | | 120,595 | 201 | 0.66% |
| Interest-bearing demand deposits | 331,105 | 2,511 | 3.01% | | 323,216 | 2,361 | 2.93% | | 311,405 | 2,150 | 2.74% |
| Time deposits | 583,581 | 6,746 | 4.59% | | 597,118 | 6,798 | 4.57% | | 596,006 | 6,444 | 4.29% |
Total interest-bearing deposits | 1,028,426 | 9,447 | 3.64% | | 1,037,483 | 9,347 | 3.61% | | 1,028,006 | 8,795 | 3.39% |
| | | | | | | | | | | | |
| Short-term borrowings | 232,586 | 2,975 | 5.03% | | 220,758 | 2,841 | 5.11% | | 236,967 | 3,120 | 5.27% |
| Long-term borrowings | 217,440 | 2,667 | 4.89% | | 210,657 | 2,559 | 4.84% | | 234,078 | 2,791 | 4.77% |
| Total borrowed funds | 450,026 | 5,642 | 4.92% | | 431,415 | 5,400 | 4.96% | | 471,045 | 5,911 | 4.92% |
Total interest-bearing liabilities | 1,478,452 | 15,089 | 4.03% | | 1,468,898 | 14,747 | 4.01% | | 1,499,051 | 14,706 | 3.88% |
| | | | | | | | | | | | |
| Non-interest-bearing deposits | 172,164 | | | | 173,565 | | | | 167,103 | | |
| Other liabilities | 16,125 | | | | 15,495 | | | | 16,071 | | |
| Total liabilities | 1,666,741 | | | | 1,657,958 | | | | 1,682,225 | | |
| | | | | | | | | | | | |
| Stockholders’ equity | 197,625 | | | | 198,517 | | | | 190,997 | | |
| Total liabilities and equity | $1,864,366 | | | | $ 1,856,475 | | | | $ 1,873,222 | | |
| | | | | | | | | | | | |
| Net interest income/spread (a) | | $13,559 | 2.81% | | | $ 13,657 | 2.85% | | | $ 13,356 | 2.79% |
| Net interest margin (a) | | | 3.26% | | | | 3.31% | | | | 3.20% |
| | | | | | | | | | | | |
(a) Information presented on a fully tax-equivalent basis.
| | Nine Months Ended | |
| | September 30, 2007 | | | September 30, 2006 | |
(in $000’s) | Balance | Income/ Expense | Yield/ Cost | | Balance | Income/ Expense | Yield/ Cost |
ASSETS | | | | | | | | | |
| Short-term investments | $ 3,808 | $ 139 | 4.89% | | | $ 4,005 | $ 132 | 4.38% | |
| Investment securities (a) | 557,225 | 21,689 | 5.19% | | | 577,198 | 21,672 | 5.01% | |
| Gross loans (a) | 1,121,801 | 63,917 | 7.61% | | | 1,100,416 | 59,868 | 7.27% | |
| Allowance for loan losses | (14,683) | | | | | (15,119) | | | |
| Total earning assets | 1,668,151 | 85,745 | 6.86% | | | 1,666,500 | 81,672 | 6.54% | |
| | | | | | | | | | |
| Intangible assets | 68,496 | | | | | 68,957 | | | |
| Other assets | 128,645 | | | | | 130,292 | | | |
| Total assets | 1,865,292 | | | | | 1,865,749 | | | |
| | | | | | | | | | |
LIABILITIES AND EQUITY | | | | | | | | | |
| Interest-bearing deposits: | | | | | | | | | |
| Savings | 115,006 | 544 | 0.63% | | | 124,571 | 602 | 0.65% | |
| Interest-bearing demand deposits | 324,213 | 7,086 | 2.92% | | | 297,060 | 5,502 | 2.48% | |
| Time deposits | 594,262 | 20,291 | 4.57% | | | 563,962 | 16,768 | 3.98% | |
Total interest-bearing deposits | 1,033,481 | 27,921 | 3.61% | | | 985,593 | 22,872 | 3.10% | |
| | | | | | | | | | |
| Short-term borrowings | 234,164 | 9,031 | 5.10% | | | 210,357 | 7,643 | 4.84% | |
| Long-term borrowings | 211,522 | 7,723 | 4.87% | | | 299,926 | 10,137 | 4.51% | |
| Total borrowed funds | 445,686 | 16,754 | 4.97% | | | 510,283 | 17,780 | 4.61% | |
Total interest-bearing liabilities | 1,479,167 | 44,675 | 4.02% | | | 1,495,876 | 40,652 | 3.62% | |
| | | | | | | | | | |
| Non-interest-bearing deposits | 172,288 | | | | | 166,590 | | | |
| Other liabilities | 15,921 | | | | | 15,731 | | | |
| Total liabilities | 1,667,376 | | | | | 1,678,197 | | | |
| | | | | | | | | | |
| Stockholders’ equity | 197,916 | | | | | �� 187,552 | | | |
| Total liabilities and equity | $ 1,865,292 | | | | | $ 1,865,749 | | | |
| | | | | | | | | | |
| Net interest income/spread (a) | | $ 41,070 | 2.84% | | | | $ 41,020 | 2.92% | |
| Net interest margin (a) | | | 3.29% | | | | | 3.29% | |
| | | | | | | | | | |
(a) Information presented on a fully tax-equivalent basis.
END OF RELEASE
