PEOPLES BANCORP INC. – P.O. BOX 738 - MARIETTA, OHIO – 45750 & #160; www.peoplesbancorp.com
NEWS RELEASE
| FOR IMMEDIATE RELEASE | Contact: | Carol A. Schneeberger |
| April 24, 2008 | | Chief Financial Officer and Treasurer |
| | | (740) 373-3155 |
PEOPLES BANCORP INC. ANNOUNCES
FIRST QUARTER EARNINGS
_____________________________________________________________________
MARIETTA, Ohio - Peoples Bancorp Inc. (“Peoples”) (NASDAQ: PEBO) announced first quarter 2008 net income of $5.6 million, or $0.55 per diluted share, compared to $5.6 million, or $0.53, for the first quarter of 2007. First quarter 2008 earnings produced a return on average equity and assets of 11.00% and 1.21%, respectively, compared to 11.59% and 1.22% for the same quarter in 2007.
“We are pleased to report higher first quarter earnings per share, improved net interest margin and net interest income, as well as strong deposit growth,” said Mark F. Bradley, President and Chief Executive Officer. “We have seen an increase in nonperforming loans since year-end due primarily to one large commercial real estate loan being placed on nonaccrual status. However, we believe the specific loan is adequately collateralized, and our capital levels remain strong.”
During the first quarter of 2008, management focused on reducing exposures to credit and interest rate risks by selling $7.2 million of preferred stocks issued by the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation and two US agency collateralized mortgage obligations with an aggregate book value of $7.6 million. The preferred stocks were sold to reduce Peoples’ exposure to those entities. The sale of the collateralized mortgage obligations was part of management’s current strategy to lessen the exposure to a future rising interest rate environment within Peoples’ investment portfolio. Peoples also sold several small-lot mortgage-backed securities. The net impact of the portfolio management initiatives produced a net gain of $159,000. Peoples also recognized a gain of $134,000 from the partial redemption of its equity interest in Visa USA.
Net interest income grew to $14.3 million for the quarter ended March 31, 2008, from $13.9 million for the prior quarter, while net interest margin expanded 11 basis points to 3.51%. Compared to the first quarter of 2007, net interest income was up 6% in the first quarter of 2008 and net interest margin expanded 19 basis points. Peoples’ average earning assets, although up from a year ago, were down nearly $13 million from the fourth quarter of 2007, due to a higher level of commercial loan payoffs over the last several months.
“The recent downward shift in short-term interest rates along with a reduction in certain deposit rates has enhanced net interest income and margin,” said Carol A. Schneeberger, Chief Financial Officer and Treasurer. “However, future margin expansion may be limited as the downward repricing of assets may outpace the reduction in rates on our funding sources.”
In the first quarter of 2008, total non-interest income was $8.2 million compared to $8.1 million a year ago. First quarter trust and investment income increased 9% year-over-year, due mostly to a 5% gain in the market value of assets under management since March 31, 2007. Peoples also saw e-banking revenues grow 11% to $0.9 million from sustained increases in debit card activity. These improvements were partially offset by a slight decrease in deposit account service charges attributable to fewer non-sufficient funds fees and lower deposit account fees. Compared to the fourth quarter of 2007, non-interest income was up 8% in the first quarter of 2008, due mostly to the receipt of annual performance based insurance commission income, which is typically earned during the first quarter of each year.
“We continue to see the benefits of our strategic actions designed to grow and diversify non-interest revenues,” said Schneeberger. “Our wealth management group has produced another strong quarter, despite the recent downturn in the financial markets that lowered the value of managed assets compared to year-end 2007. Insurance revenues are in line with our expectations considering the challenges from the tighter pricing margins caused by insurance companies reducing premiums to attract market share. Our ongoing commitment to increasing cross-sales through a client relationship approach continues to provide additional opportunities to grow revenues.”
Non-interest expense totaled $13.7 million through the first three months of 2008, versus $13.3 million for the same period in 2007. First quarter salary and benefit costs were up 4% year-over-year and accounted for over half of the increase in total non-interest expense, largely attributable to increased sales-based compensation and additional equity-based compensation. Other key contributing factors to higher non-interest expense were increased occupancy expenses, including repairs, maintenance and utility costs, and e-banking expense, primarily online banking costs. Compared to the fourth quarter of 2007, non-interest expense increased $1.4 million, due mostly to higher performance based incentive compensation, medical insurance costs and equity-based compensation, coupled with the lower fourth quarter franchise tax expense which resulted from the settlement of a state tax audit.
PEOPLES BANCORP INC.
First Quarter 2008 Earnings Release
- Page 2 of 8 - &# 160;
During the first quarter of 2008, gross portfolio loan balances decreased $5.2 million, from $1.12 billion at December 31, 2007. Commercial loan balances were down $6.8 million, as commercial real estate loan payoffs outpaced new production. Residential real estate loan balances were flat for the quarter, while Peoples’ serviced loan portfolio increased $2.0 million, to $178.8 million at March 31, 2008.
“As anticipated, loan balances declined slightly in the first quarter due to commercial loan payoffs,” added Schneeberger. “While lending opportunities exist within our markets, we remain focused on loan quality rather than quantity, even more so during this time of economic uncertainty, which could limit near-term loan growth.”
Peoples’ provision for loan losses was $1.4 million for the first quarter of 2008, versus $1.5 million and $0.6 million in the fourth and first quarters of 2007, respectively. 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 March 31, 2008, non-performing loans totaled $17.5 million, or 1.57% of total loans, compared to $9.4 million, or 0.83%, at December 31, 2007 and $6.0 million, or 0.53%, at March 31, 2007. Nonaccrual loans increased $8.1 million during the first quarter, due mostly to Peoples placing a single $7 million commercial real estate loan into nonaccrual status. Management believes the loan is adequately collateralized and that it has been appropriately considered in establishing the allowance for loan losses at March 31, 2008. The allowance for loan losses was $16.0 million, or 91.2% of nonperforming loans, at March 31, 2008, versus $15.7 million, or 168.0%, at year-end 2007, and $14.5 million, or 241.3%, at March 31, 2007. In the first quarter of 2008, net loan charge-offs were $1.2 million, up $0.6 million from a year ago, due primarily to the charge-off of $1 million related to the previously mentioned commercial real estate loan placed into nonaccrual status during the quarter.
Retail deposit balances, which exclude brokered deposits, grew $82.4 million during the first quarter of 2008, due almost entirely to growth in interest-bearing deposits. Compared to year-end 2007, retail certificate of deposit balances were up $49.8 million, or 10%, at March 31, 2008, largely attributable to Peoples attracting funds from customers outside its primary market area instead of using higher-costing brokered deposits. Interest-bearing demand deposits also rose $20.3 million, or 11%, during the first quarter of 2008, reflecting seasonal changes in public funds from tax revenues. Non-interest-bearing deposits also grew $2.4 million since year-end 2007, from a $9.3 million increase in consumer deposit balances that offset a $7.1 million decline in commercial balances. The overall deposit growth in the first quarter of 2008 allowed Peoples to reduce higher rate brokered certificates of deposit balances by $19.8 million and contributed to the $61.7 million, or 13%, overall reduction in borrowed funds since year-end.
“Loan quality and higher loan loss provisions are challenging many in the financial services industry,” summarized Bradley. “However, we are pleased with first quarter earnings, deposit growth, and net interest margin improvement. We remain committed to growing the company in a disciplined manner that will allow us to deliver sustainable, long-term growth in earnings and dividends.”
Peoples Bancorp Inc. is a diversified financial products and services company with $1.9 billion in assets, 50 locations and 38 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 first quarter 2008 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 (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, to 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.
PEOPLES BANCORP INC.
First Quarter 2008 Earnings Release
- Page 3 of 8 -
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) deterioration in the credit quality of Peoples’ loan portfolio could occur due to a number of factors, 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) changes in prepayment speeds, loan originations, sale volumes, and charge-offs, which may be less favorable than expected and adversely impact the amount of interest income generated; (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, 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 |
| | March 31, | | December 31, | | March 31, |
| (in $000’s, except per share data) | 2008 | | 2007 | | 2007 |
| Net income per share: | | | | | |
| Basic | $ 0.55 | | $ 0.21 | | $ 0.53 |
| Diluted | $ 0.55 | | $ 0.21 | | $ 0.53 |
| Cash dividends declared per share | $ 0.22 | | $ 0.22 | | $ 0.22 |
| Book value per share | $ 20.15 | | $ 19.70 | | $ 18.85 |
| Tangible book value per share (a) | $ 13.58 | | $ 13.09 | | $ 12.34 |
| Closing stock price at end of period | $ 24.11 | | $ 24.89 | | $ 26.41 |
| Dividend payout as a percentage of net income | 40.46% | | 103.58% | | 41.23% |
| Return on average equity (b) | 11.00% | | 4.34% | | 11.59% |
| Return on average assets (b) | 1.21% | | 0.46% | | 1.22% |
| Efficiency ratio (c) | 58.09% | | 54.14% | | 58.45% |
| Net interest margin (fully-tax equivalent) (b) | 3.51% | | 3.40% | | 3.32% |
| (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.
First Quarter 2008 Earnings Release
- Page 4 of 8 -
PEOPLES BANCORP INC. CONSOLIDATED STATEMENTS OF INCOME
| | Three Months Ended |
| | March 31, |
| (in $000’s) | 2008 | | 2007 |
| Interest income | $ 27,299 | | $ 28,360 |
| Interest expense | 13,013 | | 14,839 |
| Net interest income | 14,286 | | 13,521 |
| Provision for loan losses | 1,437 | | 623 |
| Net interest income after provision for loan losses | 12,849 | | 12,898 |
| | | | |
| Net gain on investment securities | 293 | | 17 |
| | | | |
| Non-interest income: | | | |
| Insurance commissions | 2,930 | | 2,950 |
| Service charges on deposits | 2,295 | | 2,368 |
| Trust and investment income | 1,246 | | 1,143 |
| Electronic banking revenues | 918 | | 828 |
| Business owned life insurance | 424 | | 411 |
| Mortgage banking income | 204 | | 207 |
| Other | 217 | | 207 |
| Total non-interest income | 8,234 | | 8,114 |
| Non-interest expense: | | | |
| Salaries and benefits | 7,560 | | 7,297 |
| Net occupancy and equipment | 1,426 | | 1,332 |
| Professional fees | 610 | | 614 |
| Data processing and software | 541 | | 513 |
| Electronic banking expense | 524 | | 460 |
| Franchise taxes | 416 | | 439 |
| Amortization of intangible assets | 415 | | 500 |
| Marketing | 370 | | 349 |
| Other | 1,880 | | 1,838 |
| Total non-interest expense | 13,742 | | 13,342 |
| Income before income taxes | 7,634 | | 7,687 |
| Income tax expense | 1,986 | | 2,041 |
| Net income | $ 5,648 | | $ 5,646 |
| | | | |
| Net income per share: | | | |
| Basic | $ 0.55 | | $ 0.53 |
| Diluted | $ 0.55 | | $ 0.53 |
| | | | |
| Cash dividends declared per share | $ 0.22 | | $ 0.22 |
| | | | |
| Weighted average shares outstanding: | | | |
| Basic | 10,302,713 | | 10,584,893 |
| Diluted | 10,345,180 | | 10,670,148 |
| | | | |
| Actual shares outstanding (end of period) | 10,295,414 | | 10,511,134 |
PEOPLES BANCORP INC.
First Quarter 2008 Earnings Release
- Page 5 of 8 -
PEOPLES BANCORP INC. CONSOLIDATED BALANCE SHEETS
| | March 31, | | December 31, |
| (in $000’s) | 2008 | | 2007 |
| | | | |
| ASSETS | | | |
| Cash and cash equivalents: | | | |
| Cash and due from banks | $ 47,508 | | $ 43,275 |
| Interest-bearing deposits in other banks | 1,714 | | 1,925 |
| Total cash and cash equivalents | 49,222 | | 45,200 |
| | | | |
| Available-for-sale investment securities, at fair value (amortized cost of $543,365 | | |
| at March 31, 2008 and $535,979 at December 31, 2007) | 551,098 | | 542,231 |
| Other investment securities, at cost | 23,478 | | 23,232 |
| Total investment securities | 574,576 | | 565,463 |
| | | | |
| Loans, net of unearned interest | 1,115,729 | | 1,120,941 |
| Allowance for loan losses | (15,953) | | (15,718) |
| Net loans | 1,099,776 | | 1,105,223 |
| | | | |
| Loans held for sale | 823 | | 1,994 |
| Bank premises and equipment, net of accumulated depreciation | 24,762 | | 24,803 |
| Business owned life insurance | 50,715 | | 50,291 |
| Goodwill | 62,520 | | 62,520 |
| Other intangible assets | 5,085 | | 5,509 |
| Other assets | 23,959 | | 24,550 |
| TOTAL ASSETS | $ 1,891,438 | | $ 1,885,553 |
| | | | |
| LIABILITIES | | | |
| Non-interest-bearing deposits | $ 177,449 | | $ 175,057 |
| Interest-bearing deposits | 1,071,542 | | 1,011,320 |
| Total deposits | 1,248,991 | | 1,186,377 |
| | | | |
| Federal funds purchased, securities sold under repurchase agreements, | | | |
| and other short-term borrowings | 154,866 | | 222,541 |
| Long-term borrowings | 237,976 | | 231,979 |
| Junior subordinated notes held by subsidiary trusts | 22,469 | | 22,460 |
| Accrued expenses and other liabilities | 19,715 | | 19,360 |
| TOTAL LIABILITIES | 1,684,017 | | 1,682,717 |
| | | | |
| STOCKHOLDERS’ EQUITY | | | |
| Common stock, no par value (24,000,000 shares authorized, 10,934,940 shares | | |
| issued at March 31, 2008, and 10,925,954 shares issued at December 31, 2007) | 163,857 | | 163,399 |
| Retained earnings | 55,890 | | 52,527 |
| Accumulated comprehensive income, net of deferred income taxes | 3,977 | | 3,014 |
| Treasury stock, at cost (639,526 shares at March 31, 2008, and | | | |
| 629,206 shares at December 31, 2007) | (16,303) | | (16,104) |
| TOTAL STOCKHOLDERS’ EQUITY | 207,421 | | 202,836 |
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 1,891,438 | | $ 1,885,553 |
PEOPLES BANCORP INC.
First Quarter 2008 Earnings Release
- Page 6 of 8 -
PEOPLES BANCORP INC. SELECTED FINANCIAL INFORMATION
| | March 31, | | December 31, | | September 30, | | June 30, | | March 31, |
| (in $000’s, end of period) | 2008 | | 2007 | | 2007 | | 2007 | | 2007 |
| | | | | | | | | | |
| LOAN PORTFOLIO | | | | | | | | | |
| Commercial, mortgage | $ 498,426 | | $ 513,847 | | $ 481,341 | | $ 468,241 | | $ 477,189 |
| Commercial, other | 180,523 | | 171,937 | | 174,753 | | 177,651 | | 195,612 |
| Real estate, construction | 72,326 | | 71,794 | | 83,714 | | 96,690 | | 97,116 |
| Real estate, mortgage | 237,366 | | 237,641 | | 240,599 | | 243,080 | | 247,110 |
| Home equity lines of credit | 43,101 | | 42,706 | | 43,506 | | 43,118 | | 43,404 |
| Consumer | 81,108 | | 80,544 | | 80,661 | | 77,482 | | 74,157 |
| Deposit account overdrafts | 2,879 | | 2,472 | | 2,047 | | 2,147 | | 1,037 |
| Total loans | 1,115,729 | | 1,120,941 | | 1,106,621 | | 1,108,409 | | 1,135,625 |
| | | | | | | | | | |
| DEPOSIT BALANCES | | | | | | | | | |
| Interest-bearing deposits: | | | | | | | | | |
| Retail certificates of deposit | $ 549,439 | | $ 499,684 | | $ 515,432 | | $ 517,910 | | $ 528,543 |
| Interest-bearing transaction accounts | 211,708 | | 191,359 | | 178,880 | | 179,430 | | 182,164 |
| Money market deposit accounts | 156,206 | | 153,299 | | 147,848 | | 149,791 | | 145,073 |
| Savings accounts | 114,433 | | 107,389 | | 112,507 | | 115,691 | | 119,153 |
| Brokered certificates of deposits | 39,756 | | 59,589 | | 57,507 | | 66,601 | | 70,535 |
| Total interest-bearing deposits | 1,071,542 | | 1,011,320 | | 1,012,174 | | 1,029,423 | | 1,045,468 |
| Non-interest-bearing deposits | 177,449 | | 175,057 | | 171,319 | | 173,675 | | 172,122 |
| Total deposits | 1,248,991 | | 1,186,377 | | 1,183,493 | | 1,203,098 | | 1,217,590 |
| | | | | | | | | | |
| ASSET QUALITY | | | | | | | | | |
| Nonperforming assets: | | | | | | | | | |
| Loans 90 days or more past due | $ 438 | | $ 378 | | $ 190 | | $ 313 | | $ – |
| Nonaccrual loans | 17,061 | | 8,980 | | 5,979 | | 7,096 | | 6,015 |
| Total nonperforming loans | 17,499 | | 9,358 | | 6,169 | | 7,409 | | 6,015 |
| Other real estate owned | 343 | | 343 | | 343 | | 213 | | 50 |
| Total nonperforming assets | $ 17,842 | | $ 9,701 | | $ 6,512 | | $ 7,622 | | $ 6,065 |
| | | | | | | | | | |
| Allowance for loan losses as a percent of | | | | | | | | | |
| nonperforming loans | 91.2% | | 168.0% | | 237.3% | | 198.3% | | 241.3% |
| Nonperforming loans as a percent of total loans | 1.57% | | 0.83% | | 0.56% | | 0.67% | | 0.53% |
| Nonperforming assets as a percent of total assets | 0.94% | | 0.51% | | 0.34% | | 0.41% | | 0.32% |
| Nonperforming assets as a percent of total loans and | | | | | | | | |
| other real estate owned | 1.60% | | 0.87% | | 0.59% | | 0.69% | | 0.53% |
| Allowance for loan losses as a percent of total loans | 1.43% | | 1.40% | | 1.32% | | 1.33% | | 1.28% |
| | | | | | | | | | |
| REGULATORY CAPITAL (a) | | | | | | | | | |
| Tier 1 risk-based capital | 12.13% | | 11.91% | | 11.82% | | 11.74% | | 11.93% |
| Total risk-based capital ratio (Tier 1 and Tier 2) | 13.44% | | 13.23% | | 13.04% | | 12.97% | | 13.11% |
| Leverage ratio | 8.81% | | 8.48% | | 8.67% | | 8.67% | | 8.91% |
| Tier 1 capital | $ 158,919 | | $ 154,933 | | $ 156,209 | | $ 155,361 | | $ 161,170 |
| Total capital (Tier 1 and Tier 2) | $ 176,083 | | $ 172,117 | | $ 172,263 | | $ 171,592 | | $ 177,207 |
| Total risk-weighted assets | $ 1,310,391 | | $ 1,301,056 | | $ 1,321,367 | | $ 1,323,359 | | $ 1,351,409 |
PEOPLES BANCORP INC.
First Quarter 2008 Earnings Release
- Page 7 of 8 -
PEOPLES BANCORP INC. PROVISION FOR LOAN LOSSES INFORMATION
| | Three Months Ended |
| | March 31, | | December 31, | March 31, |
| (in $000’s) | 2008 | | 2007 | | 2007 |
| PROVISION FOR LOAN LOSSES | | | | | |
| Provision for Overdraft Privilege losses | $ 37 | | $ 172 | | $ 23 |
| Provision for other loan losses | 1,400 | | 1,350 | | 600 |
| Total provision for loan losses | $ 1,437 | | $ 1,522 | | $ 623 |
| | | | | | |
| NET CHARGE-OFFS | | | | | |
| Gross charge-offs | $ 1,638 | | $ 840 | | $ 1,645 |
| Recoveries | 436 | | 395 | | 1,026 |
| Net charge-offs | $ 1,202 | | $ 445 | | $ 619 |
| | | | | | |
| NET CHARGE-OFFS (RECOVERIES) BY TYPE | | | | |
| Commercial | $ 861 | | $ 32 | | $ 288 |
| Real estate | 160 | | 172 | | 13 |
| Consumer | 102 | | 66 | | 266 |
| Overdrafts | 87 | | 177 | | 53 |
| Credit card | (8) | | (2) | | (1) |
| Total net charge-offs | $ 1,202 | | $ 445 | | $ 619 |
| | | | | | |
| Net charge-offs as a percent of loans (annualized) | 0.43% | | 0.16% | | 0.22% |
PEOPLES BANCORP INC. SUPPLEMENTAL INFORMATION
| | March 31, | | December 31, | | September 30, | | June 30, | | March 31, |
| (in $000’s, end of period) | 2008 | | 2007 | | 2007 | | 2007 | | 2007 |
| | | | | | | | | | |
| Trust assets under management | $ 775,834 | | $ 797,443 | | $ 805,931 | | $ 766,417 | | $ 744,939 |
| Brokerage assets under management | $ 221,340 | | $ 223,950 | | $ 218,573 | | $ 209,858 | | $ 201,143 |
| Mortgage loans serviced for others | $ 178,763 | | $ 176,742 | | $ 176,380 | | $ 172,314 | | $ 165,728 |
| Employees (full-time equivalent) | 556 | | 559 | | 553 | | 556 | | 560 |
| Announced treasury share plans: (a) | | | | | | | | | |
| Total shares authorized for plan | 500,000 | | 925,000 | | 425,000 | | 425,000 | | 425,000 |
| Shares purchased | 13,600 | | 84,600 | | 139,000 | | 70,000 | | 170,000 |
| Average price | $ 21.59 | | $ 24.25 | | $ 24.05 | | $ 26.79 | | $ 28.70 |
(a) 2008 data reflects shares purchased under the repurchase plan announced on November 9, 2007, authorizing the repurchase
of up to 500,000 common shares, upon the completion of the 2007 Stock Repurchase Program. 2007 data reflects shares purchased
under the repurchase plan announced on November 9, 2007, and under the 2007 Stock Repurchase Program announced on
January 12, 2007, 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.
First Quarter 2008 Earnings Release
- Page 8 of 8 -
PEOPLES BANCORP INC. CONSOLIDATED AVERAGE BALANCE SHEET AND NET INTEREST INCOME
| | Three Months Ended |
| | March 31, 2008 | | December 31, 2007 | | March 31, 2007 |
| (in $000’s) | Balance | Income/ Expense | Yield/ Cost | Balance | Income/ Expense | Yield/ Cost | Balance | Income/ Expense | Yield/ Cost |
| ASSETS | | | | | | | | | | | |
| Short-term investments | $ 4,017 | $ 32 | 3.11% | | $ 2,632 | $ 31 | 4.64% | | $ 3,883 | $ 46 | 4.81% |
| Investment securities (a) | 581,638 | 7,810 | 5.37% | | 581,971 | 7,906 | 5.43% | | 559,292 | 7,281 | 5.21% |
| Gross loans (a) | 1,113,023 | 19,879 | 7.17% | | 1,125,794 | 21,232 | 7.48% | | 1,129,520 | 21,368 | 7.65% |
| Allowance for loan losses | (16,240) | | | | (15,048) | | | | (14,731) | | |
| Total earning assets | 1,682,438 | 27,721 | 6.61% | | 1,695,349 | 29,169 | 6.85% | | 1,677,964 | 28,695 | 6.89% |
| Intangible assets | 67,831 | | | | 68,275 | | | | 68,589 | | |
| Other assets | 128,307 | | | | 128,747 | | | | 128,598 | | |
| Total assets | 1,878,576 | | | | 1,892,371 | | | | 1,875,151 | | |
| | | | | | | | | | | | |
| LIABILITIES AND EQUITY | | | | | | | | | | | |
| Interest-bearing deposits: | | | | | | | | | | | |
| Savings | 108,525 | 122 | 0.45% | | 109,543 | 181 | 0.66% | | 114,132 | 166 | 0.59% |
| Interest-bearing demand deposits | 197,998 | 982 | 1.99% | | 185,246 | 1,036 | 2.22% | | 176,773 | 846 | 1.94% |
| Money market | 152,202 | 1,058 | 2.80% | | 151,582 | 1,365 | 3.57% | | 141,402 | 1,369 | 3.93% |
| Brokered time | 53,334 | 695 | 5.24% | | 59,306 | 774 | 5.18% | | 70,518 | 897 | 5.16% |
| Retail time | 523,929 | 5,608 | 4.30% | | 506,014 | 5,698 | 4.47% | | 531,776 | 5,849 | 4.46% |
| Total interest-bearing deposits | 1,035,988 | 8,465 | 3.29% | | 1,011,691 | 9,054 | 3.55% | | 1,034,601 | 9,127 | 3.58% |
| Short-term borrowings | 188,615 | 1,539 | 3.24% | | 245,977 | 2,804 | 4.48% | | 249,333 | 3,215 | 5.17% |
| Long-term borrowings | 257,598 | 3,009 | 4.68% | | 244,822 | 2,965 | 4.83% | | 206,346 | 2,497 | 4.86% |
| Total borrowed funds | 446,213 | 4,548 | 4.05% | | 490,799 | 5,769 | 4.61% | | 455,679 | 5,712 | 5.02% |
| Total interest-bearing liabilities | 1,482,201 | 13,013 | 3.52% | | 1,502,490 | 14,823 | 3.91% | | 1,490,280 | 14,839 | 4.02% |
| Non-interest-bearing deposits | 172,994 | | | | 173,411 | | | | 171,123 | | |
| Other liabilities | 16,889 | | | | 15,071 | | | | 16,143 | | |
| Total liabilities | 1,672,084 | | | | 1,690,972 | | | | 1,677,546 | | |
| Stockholders’ equity | 206,492 | | | | 201,399 | | | | 197,605 | | |
| Total liabilities and equity | $ 1,878,576 | | | | $ 1,892,371 | | | | $ 1,875,151 | | |
| | | | | | | | | | | | |
| Net interest income/spread (a) | | $ 14,708 | 3.09% | | | $ 14,346 | 2.94% | | | $ 13,856 | 2.87% |
| Net interest margin (a) | | | 3.51% | | | | 3.40% | | | | 3.32% |
| | | | | | | | | | | | |
| (a) Information presented on a fully tax-equivalent basis. | | | | | | | | |
END OF RELEASE
