PEOPLES BANCORP INC. – P.O. BOX 738 - MARIETTA, OHIO – 45750
www.peoplesbancorp.com
NEWS RELEASE
| FOR IMMEDIATE RELEASE | Contact: | Carol A. Schneeberger | |
| January 24, 2008 | | Chief Financial Officer and Treasurer | |
| | | (740) 373-3155 | |
PEOPLES BANCORP INC. REPORTS FOURTH QUARTER
AND 2007 RESULTS
_____________________________________________________________________
MARIETTA, Ohio - Peoples Bancorp Inc. (“Peoples”) (NASDAQ: PEBO) announced fourth quarter 2007 net income of $2.2 million, or $0.21 per diluted share, compared to $4.8 million, or $0.44, for the fourth quarter of 2006. For 2007, net income totaled $18.3 million or $1.74 per diluted share compared to $21.6 million or $2.01 per diluted share for 2006.
The lower earnings for both the fourth quarter and full year 2007 were impacted by a $5.5 million ($3.6 million after-tax or $0.34 per diluted share) other-than-temporary impairment charge related to investments in certain securities, including preferred stocks issued by the Federal National Mortgage Association (“Fannie Mae”) and Federal Home Loan Mortgage Corporation (“Freddie Mac”) and collateralized debt obligation (“CDO”) investments. This non-cash charge for other-than-temporary impairment is comprised of a $1.3 million charge related to Fannie Mae preferred stock previously carried at $6.8 million, a $1.9 million charge related to Freddie Mac preferred stock previously carried at $8.5 million, a $0.1 million charge related to a single bank holding company stock held by Peoples previously carried at $0.2 million and a $2.2 million charge related to three CDO investment securities previously carried at $7.9 million. This charge was partially offset by a $782,000 ($508,000 after-tax) reduction in franchise tax expense resulting from the adjustment to Peoples’ tax reserves to reflect the settlement agreement with the Tax Commissioner of the State of Ohio resolving certain controversies concerning Peoples’ Ohio corporation franchise tax liabilities and associated calculations for the 2002 through 2008 tax years (Fiscal years 2001-2007).
“Market values of certain investments have decreased due to increased risks within the broader credit market and erratic market liquidity,” said Mark F. Bradley, President and Chief Executive Officer. “Peoples Bancorp's capital levels mitigate the negative impact of the resulting other-than-temporary impairment charge.”
Bradley continued, “Without the impairment charges, our results in 2007 reflect success in diversifying revenues, improving operating efficiency and reducing our reliance on net interest income. Revenue growth was strong and net loan charge-offs decreased. Additionally, dividends increased 6% to $0.88 per share in 2007, marking our 42nd consecutive year of dividend growth.”
Net interest income for the fourth quarter of 2007 was $13.9 million, up 6% from $13.2 million for the third quarter. During the same period, net interest margin improved 14 basis points to 3.40%. Compared to the fourth quarter of 2006, net interest income increased 3% and net interest margin expanded 9 basis points in the fourth quarter of 2007. These improvements were the result of management’s efforts to reduce Peoples’ funding costs by reducing certain deposit rates and taking advantage of lower cost funding available in the market place in response to the Federal Reserve’s actions to decrease short-term interest rates and improved yield in two separate pools of loans acquired in acquisitions during 2002 and 2003. For 2007, net interest income totaled $53.9 million compared to $53.2 million in 2006, while net interest margin expanded slightly to 3.32% from 3.29%.
“While the lower interest rate environment helped us reduce funding costs in the fourth quarter, asset yields have also declined from the repricing of prime-based loans and new loans being originated at lower rates,” said Carol A. Schneeberger, Chief Financial Officer and Treasurer. “However, we successfully grew earning asset levels during the quarter, which offset much of the impact of the lower loan yields.”
In the fourth quarter of 2007, total non-interest income was $7.6 million compared to $7.4 million a year ago. In 2007, non-interest income totaled $31.4 million, up from $30.4 million in 2006. The majority of these increases resulted from higher trust and investment income, which increased 16% for the fourth quarter and 17% for the year. Since year-end 2006, Peoples has experienced a 10% gain in the dollar value of assets under management, attributable to the addition of
PEOPLES BANCORP INC.
Fourth Quarter 2007 Earnings Release
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seasoned sales personnel, coupled with an increase in cross sales from retail banking operations. Another contributing factor to non-interest income growth was increased e-banking revenues, which were up 16% and 14% compared to the fourth quarter and year ended December 31, 2006, respectively, reflecting steady volume increases in customer debit card activity.
“Non-interest income growth occurred in 2007 as a result of our efforts in recent years to diversify revenues,” said Schneeberger. “Among the successes was strong production from our insurance agency that allowed total insurance commission income to remain stable, despite lower pricing margins in the insurance industry and annual performance based commissions. We expect our renewed commitment to customer-focused delivery of financial services will continue to increase cross-sale opportunities, which in turn enhances the customer experience and contributes to additional non-interest revenues.”Total non-interest expense decreased 4% in the fourth quarter of 2007, totaling $12.4 million versus $12.9 million, largely attributable to the reduction in franchise tax expense, tempered by increases in sales-based compensation and bankcard costs, which correspond to the higher insurance and investment income and e-banking revenue, and higher software licensing and support costs. In 2007, non-interest expense was essentially flat totaling $51.5 million, as higher salaries and benefit costs were offset by reductions in other operating expenses. Consequently, Peoples’ efficiency ratio improved to 57.1% in 2007, versus 57.5% in 2006.
In 2007, Peoples’ effective tax rate was 23.3%, down from 25.8% for the first nine months of 2007 and 26.7% for 2006. The reduction in the effective tax rate was attributable to utilization of additional tax credits in 2007, coupled with a reduction in pre-tax income without a corresponding decline in tax-exempt income. In 2008, management expects a modest increase in Peoples’ effective tax rate from a lower utilization of tax credits.
Gross portfolio loan balances were $1.12 billion at December 31, 2007, up $14.3 million since the prior quarter-end from commercial mortgage loan growth. However, significant commercial and commercial mortgage loan payoffs throughout most of the year resulted in portfolio loan balances falling $11.5 million since year-end 2006. Peoples’ serviced loan portfolio totaled $176.7 million, up 9% since year-end 2006.
“We are pleased to report loan growth in the fourth quarter,” added Schneeberger. “Our continued focus on loan quality, coupled with the possibility of additional payoffs, is expected to make loan growth in the near term difficult.”
In the fourth quarter of 2007, Peoples’ provision for loan losses was $1.5 million versus $1.0 million in the third quarter and $1.9 million in the fourth quarter of 2006. For the year, the provision for loan losses totaled $4.0 million in 2007, up from $3.6 million in 2006. The provision for loan losses is based on management’s quarterly evaluation of the loan portfolio and is directionally consistent with changes in Peoples’ overall loan quality. At December 31, 2007, non-performing loans totaled $9.4 million, or 0.83% of total loans, compared to $6.2 million, or 0.56%, at September 30, 2007 and $10.0 million, or 0.88%, at year-end 2006. The allowance for loan losses was $15.7 million, or 168.0% of nonperforming loans, at year-end 2007, versus $14.6 million, or 237.3%, at September 30, 2007, and $14.5 million, or 145.0%, at December 31, 2006. Nonaccrual loans increased $3.0 million from September 30, 2007 but are relatively unchanged from December 31, 2006.
In the fourth quarter of 2007, net loan charge-offs were $446,000, down from $1.0 million last quarter, due mostly to a reduction in commercial loan charge-offs. Compared to the prior year, fourth quarter net loan charge-offs decreased substantially from $3.5 million, which was attributable to Peoples charging-off $2.9 million of impaired loans related to a single commercial loan relationship a year ago. For the year, net loan charge-offs totaled $2.8 million in 2007 versus $3.8 million in 2006.
“We believe Peoples sustained overall loan quality in 2007,” stated Schneeberger. “Many of the losses incurred in recent periods were due to credit declines in a limited number of loan relationships.. Additionally, total loan delinquencies have been at reasonable levels although we have seen a recent rise in both the dollar amount and number of loans 30 days or greater past due. We are confident that our loan review process will continue to identify problem loans in a timely manner.”
Retail deposit balances, which exclude brokered deposits, grew $22.4 million since December 31, 2006 with interest-bearing retail balances rising $18.3 million in 2007, due to money market and interest-bearing demand balances increasing 14% and 13%, respectively. Non-interest-bearing deposits also grew $4.1 million in 2007, due to higher commercial deposit balances.
In 2007, Peoples repurchased 463,600 common shares at an average price of $26.21, under previously announced stock repurchase plans. This compares to 37,800 common shares repurchased in 2006, at an average price of $28.35.
“In 2007, operating results improved due to core deposit growth, net interest margin improvement, revenue growth through customer service and controlled expense growth,” summarized Bradley. “Given the uncertainty that exists in the financial markets and the economy as a whole, which can impact loan quality in 2008, we will continue to focus on earnings quality and conservative growth.”
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Fourth Quarter 2007 Earnings Release
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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 fourth quarter and 2007 results of operations today at 11:00 a.m. Eastern Time, with members of Peoples’ executive management participating. Analysts, media and individual investors are invited to participate in the conference call by calling (800) 860-2442. 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 HarborStatement:
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) deterioration in the loan portfolio could be worse than expected due to a number of factors, such as the underlying value of the collateral could prove less valuable than otherwise assumed and assumed cash flows may be worse than expected, which may adversely impact the provision for loan losses (2) competitive pressures among financial institutions or from non-financial institutions, which may increase significantly; (3) changes in the interest rate environment, which may adversely impact interest margins; (4) prepayment speeds, loan originations and sale volumes, charge-offs and loan loss provisions, which may be less favorable than expected; (5) general economic conditions, either national or in the states in which Peoples and its subsidiaries do business, which may be less favorable than expected; (6) political developments, wars or other hostilities, which may disrupt or increase volatility in securities markets or other economic conditions; (7) legislative or regulatory changes or actions, which may adversely affect the business of Peoples and its subsidiaries; (8) adverse changes in the conditions and trends in the financial markets, which may adversely affect the fair value of securities within Peoples’ investment portfolio; (9) a delayed or incomplete resolution of regulatory issues that could arise; (10) ability to receive dividends from subsidiaries; (11) the impact of reputational risk created by these developments on such matters as business generation and retention, funding and liquidity; (12) 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 (13) 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 September 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.
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Fourth Quarter 2007 Earnings Release
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PEOPLES BANCORP INC. (NASDAQ: PEBO)
PER SHARE DATA AND PERFORMANCE RATIOS
| | Three Months Ended | | Year Ended |
| | December 31, | September 30, | | December 31, | | December 31, |
| (in $000’s, except per share data) | 2007 | | 2007 | | 2006 | | 2007 | | 2006 |
| Net income per share: | | | | | | | | | |
| Basic | $ 0.21 | | $ 0.49 | | $ 0.45 | | $ 1.75 | | $ 2.03 |
| Diluted | $ 0.21 | | $ 0.49 | | $ 0.44 | | $ 1.74 | | $ 2.01 |
| Cash dividends declared per share | $ 0.22 | | $ 0.22 | | $ 0.21 | | $ 0.88 | | $ 0.83 |
| Book value per share | $ 19.70 | | $ 19.25 | | $ 18.51 | | $ 19.70 | | $ 18.51 |
| Tangible book value per share (a) | $ 13.09 | | $ 12.63 | | $ 12.05 | | $ 13.09 | | $ 12.05 |
| Closing stock price at end of period | $ 24.89 | | $ 26.18 | | $ 29.70 | | $ 24.89 | | $ 29.70 |
| Dividend payout as a percentage of net income | 103.58% | | 44.83% | | 47.14% | | 50.38% | | 41.09% |
| Return on average equity (b) | 4.34% | | 10.27% | | 9.54% | | 9.21% | | 11.33% |
| Return on average assets (b) | 0.46% | | 1.09% | | 1.01% | | 0.98% | | 1.15% |
| Efficiency ratio (c) | 54.14% | | 57.03% | | 58.14% | | 57.07% | | 57.51% |
| Net interest margin (fully-tax equivalent) (b) | 3.40% | | 3.26% | | 3.31% | | 3.32% | | 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) |
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PEOPLES BANCORP INC. CONSOLIDATED STATEMENTS OF INCOME
| | Three Months Ended | | Year Ended |
| | December 31, | | December 31, |
| (in $000’s) | 2007 | | 2006 | | 2007 | | 2006 |
| Interest income | $ 28,738 | | $ 28,391 | | $ 113,419 | | $ 108,794 |
| Interest expense | 14,823 | | 14,925 | | 59,498 | | 55,577 |
| Net interest income | 13,915 | | 13,466 | | 53,921 | | 53,217 |
| Provision for loan losses | 1,522 | | 1,852 | | 3,959 | | 3,622 |
| Net interest income after provision for loan losses | 12,393 | | 11,614 | | 49,962 | | 49,595 |
| | | | | | | | |
| Net (loss) gain on investment securities | (5,487) | | 259 | | (6,062) | | 265 |
| Net (loss) gain on asset disposals | - | | (7) | | 76 | | 27 |
| Net gain on sale of banking office | - | | 222 | | - | | 454 |
| | | | | | | | |
| Non-interest income: | | | | | | | |
| Service charges on deposits | 2,515 | | 2,468 | | 9,890 | | 10,215 |
| Insurance commissions | 2,009 | | 2,090 | | 9,568 | | 9,538 |
| Trust and investment income | 1,344 | | 1,154 | | 4,983 | | 4,258 |
| Electronic banking revenues | 917 | | 792 | | 3,524 | | 3,080 |
| Business owned life insurance | 424 | | 428 | | 1,661 | | 1,637 |
| Mortgage banking income | 163 | | 247 | | 885 | | 825 |
| Other | 250 | | 199 | | 839 | | 826 |
| Total non-interest income | 7,622 | | 7,378 | | 31,350 | | 30,379 |
| Non-interest expense: | | | | | | | |
| Salaries and benefits | 6,782 | | 6,389 | | 27,552 | | 26,178 |
| Net occupancy and equipment | 1,381 | | 1,423 | | 5,298 | | 5,252 |
| Data processing and software | 616 | | 504 | | 2,210 | | 1,905 |
| Professional fees | 532 | | 643 | | 2,246 | | 2,465 |
| Bankcard costs | 474 | | 344 | | 1,617 | | 1,284 |
| Amortization of intangible assets | 467 | | 556 | | 1,934 | | 2,261 |
| Marketing | 437 | | 373 | | 1,515 | | 1,659 |
| Franchise taxes | (363) | | 424 | | 973 | | 1,760 |
| Other | 2,035 | | 2,252 | | 8,107 | | 8,533 |
| Total non-interest expense | 12,361 | | 12,908 | | 51,452 | | 51,297 |
| Income before income taxes | 2,167 | | 6,558 | | 23,874 | | 29,423 |
| Income tax (benefit) expense | (37) | | 1,789 | | 5,560 | | 7,865 |
| Net income | $ 2,204 | | $ 4,769 | | $ 18,314 | | $ 21,558 |
| | | | | | | | |
| Net income per share: | | | | | | | |
| Basic | $ 0.21 | | $ 0.45 | | $ 1.75 | | $ 2.03 |
| Diluted | $ 0.21 | | $ 0.44 | | $ 1.74 | | $ 2.01 |
| | | | | | | | |
| Cash dividends declared per share | $ 0.22 | | $ 0.21 | | $ 0.88 | | $ 0.83 |
| | | | | | | | |
| Weighted average shares outstanding: | | | | | | | |
| Basic | 10,344,437 | | 10,663,272 | | 10,462,933 | | 10,606,570 |
| Diluted | 10,398,806 | | 10,768,851 | | 10,529,634 | | 10,723,933 |
| | | | | | | | |
| Actual shares outstanding (end of period) | 10,296,748 | | 10,651,985 | | 10,296,748 | | 10,651,985 |
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PEOPLES BANCORP INC. CONSOLIDATED BALANCE SHEETS
| | December 31, | | December 31, |
| (in $000’s) | 2007 | | 2006 |
| | | | |
| ASSETS | | | |
| Cash and cash equivalents: | | | |
| Cash and due from banks | $ 43,275 | | $ 35,405 |
| Interest-bearing deposits in other banks | 1,925 | | 1,101 |
| Federal funds sold | - | | 3,300 |
| Total cash and cash equivalents | 45,200 | | 39,806 |
| | | | |
| Available-for-sale investment securities, at estimated fair value (amortized cost | | |
| of $559,211 at December 31, 2007 and $550,239 at December 31, 2006) | 565,463 | | 548,733 |
| | | | |
| Loans, net of unearned interest | 1,120,941 | | 1,132,394 |
| Allowance for loan losses | (15,718) | | (14,509) |
| Net loans | 1,105,223 | | 1,117,885 |
| | | | |
| Loans held for sale | 1,994 | | 1,041 |
| Bank premises and equipment, net of accumulated depreciation | 24,803 | | 23,455 |
| Business owned life insurance | 50,291 | | 48,630 |
| Goodwill | 62,520 | | 61,373 |
| Other intangible assets | 5,509 | | 7,479 |
| Other assets | 24,550 | | 26,853 |
TOTAL ASSETS | $ 1,885,553 | | $ 1,875,255 |
| | | | |
| LIABILITIES | | | |
| Non-interest-bearing deposits | $ 175,057 | | $ 170,921 |
| Interest-bearing deposits | 1,011,320 | | 1,062,608 |
| Total deposits | 1,186,377 | | 1,233,529 |
| | | | |
| Federal funds purchased, securities sold under repurchase agreements, | | | |
| and other short-term borrowings | 222,541 | | 194,883 |
| Long-term borrowings | 231,979 | | 200,793 |
| Junior subordinated notes held by subsidiary trusts | 22,460 | | 29,412 |
| Accrued expenses and other liabilities | 19,360 | | 19,469 |
TOTAL LIABILITIES | 1,682,717 | | 1,678,086 |
| | | | |
| STOCKHOLDERS’ EQUITY | | | |
| Common stock, no par value (24,000,000 shares authorized, 10,925,954 shares | | |
| issued at December 31, 2007, and 10,889,242 shares issued at December 31, 2006) | 163,399 | | 162,654 |
| Retained earnings | 52,527 | | 43,439 |
| Accumulated comprehensive income (loss), net of deferred income taxes | 3,014 | | (2,997) |
| Treasury stock, at cost (629,206 shares at December 31, 2007, and | | | |
| 237,257 shares at December 31, 2006) | (16,104) | | (5,927) |
| TOTAL STOCKHOLDERS’ EQUITY | 202,836 | | 197,169 |
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 1,885,553 | | $ 1,875,255 |
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Fourth Quarter 2007 Earnings Release
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PEOPLES BANCORP INC. SELECTED FINANCIAL INFORMATION
| | December 31, | | September 30, | | June 30, | | March 31, | | December 31, |
| (in $000’s, end of period) | 2007 | | 2007 | | 2007 | | 2007 | | 2006 |
| | | | | | | | | | |
| LOAN PORTFOLIO | | | | | | | | | |
| Commercial, mortgage | $ 513,847 | | $ 481,341 | | $ 468,241 | | $ 477,189 | | $ 469,934 |
| Commercial, other | 171,937 | | 174,753 | | 177,651 | | 195,612 | | 191,847 |
| Real estate, construction | 71,794 | | 83,714 | | 96,690 | | 97,116 | | 99,311 |
| Real estate, mortgage | 280,347 | | 284,105 | | 286,198 | | 290,514 | | 297,663 |
| Consumer | 83,016 | | 82,708 | | 79,629 | | 75,194 | | 73,639 |
| Total loans | 1,120,941 | | 1,106,621 | | 1,108,409 | | 1,135,625 | | 1,132,394 |
| | | | | | | | | | |
| DEPOSIT BALANCES | | | | | | | | | |
| Interest-bearing deposits: | | | | | | | | | |
| Retail certificates of deposit | $ 499,684 | | $ 515,432 | | $ 517,910 | | $ 528,543 | | $ 514,885 |
| Interest-bearing transaction accounts | 191,359 | | 178,880 | | 179,430 | | 182,164 | | 170,022 |
| Money market deposit accounts | 153,299 | | 147,848 | | 149,791 | | 145,073 | | 134,387 |
| Savings accounts | 107,389 | | 112,507 | | 115,691 | | 119,153 | | 114,186 |
| Brokered certificates of deposits | 59,589 | | 57,507 | | 66,601 | | 70,535 | | 129,128 |
| Total interest-bearing deposits | 1,011,320 | | 1,012,174 | | 1,029,423 | | 1,045,468 | | 1,062,608 |
| Non-interest-bearing deposits | 175,057 | | 171,319 | | 173,675 | | 172,122 | | 170,921 |
| Total deposits | 1,186,377 | | 1,183,493 | | 1,203,098 | | 1,217,590 | | 1,233,529 |
| | | | | | | | | | |
| ASSET QUALITY | | | | | | | | | |
| Nonperforming assets: | | | | | | | | | |
| Loans 90 days or more past due | $ 378 | | $ 190 | | $ 313 | | $ - | | $ 1 |
| Renegotiated loans | – | | – | | – | | – | | 1,218 |
| Nonaccrual loans | 8,980 | | 5,979 | | 7,096 | | 6,015 | | 8,785 |
| Total nonperforming loans | 9,358 | | 6,169 | | 7,409 | | 6,015 | | 10,004 |
| Other real estate owned | 343 | | 343 | | 213 | | 50 | | - |
| Total nonperforming assets | $ 9,701 | | $ 6,512 | | $ 7,622 | | $ 6,065 | | $ 10,004 |
| | | | | | | | | | |
| Allowance for loan losses as a percent of | | | | | | | | | |
| nonperforming loans | 168.0% | | 237.3% | | 198.3% | | 241.3% | | 145.0% |
| Nonperforming loans as a percent of total loans | 0.83% | | 0.56% | | 0.67% | | 0.53% | | 0.88% |
| Nonperforming assets as a percent of total assets | 0.51% | | 0.34% | | 0.41% | | 0.32% | | 0.53% |
| Nonperforming assets as a percent of total loans and | | | | | | | | |
| other real estate owned | 0.87% | | 0.59% | | 0.69% | | 0.53% | | 0.88% |
| Allowance for loan losses as a percent of total loans | 1.40% | | 1.32% | | 1.33% | | 1.28% | | 1.28% |
| | | | | | | | | | |
| REGULATORY CAPITAL (a) | | | | | | | | | |
| Tier 1 risk-based capital | 11.91% | | 11.82% | | 11.74% | | 11.93% | | 11.98% |
| Total risk-based capital ratio (Tier 1 and Tier 2) | 13.23% | | 13.04% | | 12.97% | | 13.11% | | 13.17% |
| Leverage ratio | 8.48% | | 8.67% | | 8.67% | | 8.91% | | 8.90% |
| Tier 1 capital | $ 154,933 | | $ 156,209 | | $ 155,361 | | $ 161,170 | | $ 161,439 |
| Total capital (Tier 1 and Tier 2) | $ 172,117 | | $ 172,263 | | $ 171,592 | | $ 177,207 | | $ 177,524 |
| Total risk-weighted assets | $ 1,300,541 | | $ 1,321,367 | | $ 1,323,359 | | $ 1,351,409 | | $ 1,347,819 |
(a) December 31, 2007 data based on preliminary analysis and subject to revision.
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Fourth Quarter 2007 Earnings Release
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PEOPLES BANCORP INC. PROVISION FOR LOAN LOSSES INFORMATION
| | Three Months Ended | | Year Ended |
| | December 31, | September 30, | December 31, | December 31, |
| (in $000’s) | 2007 | 2007 | 2006 | 2007 | | 2006 |
| PROVISION FOR LOAN LOSSES | | | | | | | | | |
| Provision for Overdraft Privilege losses | $ 172 | | $ 227 | | $ 152 | | $ 558 | | $ 712 |
| Provision for other loan losses | 1,350 | | 740 | | 1,700 | | 3,401 | | 2,910 |
| Total provision for loan losses | $ 1,522 | | $ 967 | | $ 1,852 | | $ 3,959 | | $ 3,622 |
| | | | | | | | | | |
| NET CHARGE-OFFS | | | | | | | | | |
| Gross charge-offs | $ 840 | | $ 1,251 | | $ 3,682 | | $ 4,701 | | $ 5,484 |
| Recoveries | 395 | | 233 | | 205 | | 1,951 | | 1,651 |
| Net charge-offs | $ 445 | | $ 1,018 | | $ 3,477 | | $ 2,750 | | $ 3,833 |
| | | | | | | | | | |
| NET CHARGE-OFFS (RECOVERIES) BY TYPE | | | | | | | | | |
| Overdrafts | $ 177 | | $ 207 | | $ 193 | | $ 569 | | $ 704 |
| Real estate | 172 | | 232 | | 124 | | 403 | | (17) |
| Consumer | 66 | | 107 | | 138 | | 469 | | 242 |
| Commercial | 32 | | 472 | | 3,023 | | 1,315 | | 2,908 |
| Credit card | (2) | | - | | (1) | | (6) | | (4) |
| Total net charge-offs | $ 445 | | $ 1,018 | | $ 3,477 | | $ 2,750 | | $ 3,833 |
| | | | | | | | | | |
| Net charge-offs as a percent of loans (annualized) | 0.16% | | 0.36% | | 1.22% | | 0.24% | | 0.35% |
