PEOPLES BANCORP INC. – P.O. BOX 738 - MARIETTA, OHIO – 45750 www.peoplesbancorp.com
NEWS RELEASE
| FOR IMMEDIATE RELEASE | Contact: | Edward G. Sloane |
| April 21, 2009 | | Chief Financial Officer and Treasurer |
| | | (740) 373-3155 |
PEOPLES BANCORP INC. ANNOUNCES
FIRST QUARTER RESULTS
_____________________________________________________________________
MARIETTA, Ohio - Peoples Bancorp Inc. (“Peoples”) (NASDAQ: PEBO) today announced first quarter 2009 net income of $4.2 million compared to $5.6 million earned in the first quarter of 2008, as improvements in net interest income were more than offset by an increased provision for loan losses. Diluted earnings per common share were $0.37 and $0.55 for the three months ended March 31, 2009 and 2008, respectively, which include the impact of preferred dividends on net income available to common shareholders.
“We are pleased with first quarter results considering the extremely challenging market conditions and economic uncertainty,” said Mark F. Bradley, President and Chief Executive Officer. “Like many financial institutions, first quarter provision for loan losses and charge-offs, although lower than recent quarters, remained at higher than historical levels, due to the continued adverse affects of a recessionary economy on real estate values and some of our commercial borrowers. We remain diligent in dealing with the credit issues within our loan portfolio and are encouraged by some stability in nonperforming asset levels during the first quarter.”
Bradley continued, “Despite the tough conditions, we made positive progress in several key areas, including increased net interest income, deposit growth and reductions in wholesale borrowings. We also strengthened the capital positions of both Peoples and Peoples Bank and successfully contained operating costs, with first quarter expense growth mostly isolated to increased FDIC insurance premiums and higher costs associated with under performing loans. Mortgage banking activity increased significantly, generating additional first quarter non-interest revenue, while other consumer lending showed steady growth.”
On January 30, 2009, Peoples received $39 million of equity capital from the U.S. Treasury’s TARP Capital Purchase Program, through the sale of 39,000 newly-issued non-voting Fixed Rate Cumulative Perpetual Preferred Shares, Series A (the “Series A Preferred Shares”) and a related 10-year warrant to purchase 313,505 common shares. While first quarter 2009 diluted earnings per common share were impacted by accrued dividends of $341,000 on the Series A Preferred Shares, this capital investment allowed Peoples to improve its already strong regulatory capital ratios and increase tangible equity during the first quarter. At March 31, 2009, Peoples’ Tier 1 Capital ratio was 14.80% and the Total Capital ratio was 16.08%, which remain well above the minimum ratios of 6% and 10%, respectively, required to be considered “well-capitalized” by banking regulations. Tangible equity to tangible assets was 8.24% at quarter-end compared to 6.21% at December 31, 2008.
During the first quarter of 2009, retail deposit balances, which exclude brokered deposits, grew $74.4 million, or 23% on an annualized basis, to $1.40 billion at quarter-end. The largest growth occurred in interest-bearing demand accounts, which increased $27.8 million, due mostly to a build-up of governmental deposit balances from tax revenues. Money market deposit balances increased 7% as Peoples continues to offer a highly competitive rate to customers. Also at quarter-end, Peoples’ savings and non-interest bearing balances were up 9% and 6%, respectively, since year-end 2008. Both of these increases reflect seasonal growth typically experienced during the first quarter of each year. At March 31, 2009, brokered deposits were down $19.2 million, or 43%, since year-end 2008, and total borrowings decreased $44.2 million, or 10%, due mostly to the elimination of overnight wholesale borrowings, which totaled $44.4 million at December 31, 2008.
“Funds generated from retail deposit growth and the TARP Capital Purchase Program allowed us to reduce short-term wholesale funding levels in the first quarter,” said Edward G. Sloane, Chief Financial Officer. “We are working to deploy the TARP capital funds into loans that meet prudent underwriting standards. We also anticipate using deposit growth to reduce wholesale funding levels even further as long-term borrowings mature throughout the year.”
PEOPLES BANCORP INC.
First Quarter 2009 Earnings Release
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In the first quarter of 2009, net interest income was $15.5 million, up 6% from the linked quarter, while net interest margin expanded 8 basis points to 3.52%. These improvements resulted from a 7% reduction in interest expense and stable interest income. Interest expense benefited from opportunities to reduce Peoples’ overall cost of funds provided by growth in lower-cost deposits and lower short-term market rates. First quarter interest income was challenged by lower asset yields from increased refinancing and downward repricing of variable rate assets, although the impact was offset by a higher level of earning assets. Compared to the prior year, first quarter net interest income was up 9%, largely attributable to higher earning asset levels, while net interest margin was basically unchanged as higher investment yields offset a reduction in loan yields.
“First quarter net interest income and margin exceeded our expectations, due mostly to stronger than anticipated deposit growth and reductions in overall cost of funds,” said Sloane. “We are also continuing to see benefits from our proactive interest rate risk management and steps taken in 2008 designed to position the balance sheet for an eventual rising interest rate environment. During the remainder of 2009, our focus will be on maintaining net interest income levels through effective balance sheet management.”
Non-interest income also remained strong in the first quarter of 2009, with increased mortgage banking income offset by lower revenues from other major sources. As a result, total non-interest income for the three months ended March 31, 2009, was consistent with the same period last year, totaling $8.2 million. Compared to the fourth quarter of 2008, non-interest income increased 5%, due to the higher mortgage banking income, coupled with recognition of annual performance based insurance revenue of $768,000 received during the first quarter.
At March 31, 2009, Peoples’ allowance for loan losses stood at $24.1 million, or 2.19% of total loans, up from $22.9 million, or 2.08% of total loans, at December 31, 2008, and $16.0 million, or 1.43%, at March 31, 2008. First quarter 2009 net loan charge-offs totaled $2.9 million, comprised mainly of write-downs on four unrelated commercial loans, previously identified as being impaired during 2008, in response to further credit deterioration of the borrowers and underlying collateral values. In comparison, net charge-offs were $9.7 million last quarter and $1.2 million a year ago, which included write-downs on impaired loans of $8.2 million and $1.0 million, respectively. The elevated level of charge-offs in recent quarters, coupled with the continued distressed economic conditions, were key drivers behind the build up of the allowance for loan losses. These factors also caused Peoples to record a provision for loan losses of $4.1 million for the first quarter of 2009, versus $13.4 million and $1.4 million for the fourth and first quarters of 2008, respectively.
Gross portfolio loan balances were $1.10 billion at March 31, 2009, down $3.1 million compared to year-end 2008. Increased consumer lending was offset by a reduction in portfolio residential real estate loans as more loans were sold to the secondary market. Loan balances were also impacted by the first quarter write-downs on impaired loans and slower commercial lending activity. As a result, nonperforming loans comprised $38.6 million, or 3.50%, of gross loans, down from $41.3 million, or 3.74%, at December 31, 2008. Compared to a year ago, gross loan balances were down $14.8 million at quarter-end, mainly attributable to charge-offs, while nonperforming loans remained at higher levels as a result of loans placed on nonaccrual status during the latter part of 2008.
“Asset quality showed signs of stabilization in the first quarter, as we continue working through problem loans identified in 2008,” said Sloane. “In addition, mortgage and consumer loans continue to perform well and delinquencies remain reasonable. New loan production in the first quarter was slightly higher than a year ago, despite the depressed conditions in the real estate markets and general economy. Our mortgage banking activity and serviced loan portfolio increased significantly during the first quarter, while consumer lending has remain steady. We are also using our stronger capital position to provide appropriate relief to struggling mortgage and consumer borrowers.”
Mortgage banking activity intensified during the first quarter of 2009 as many clients took advantage of lower interest rates and other opportunities offered by the secondary market to refinance existing loans. This increased activity caused a substantial growth in first quarter mortgage loans being serviced by Peoples and related mortgage banking income, which nearly tripled to $601,000 compared to $204,000 a year ago. Deposit account service charges were also up 5% compared to the prior year first quarter. The impact of these increases on total non-interest income was offset by lower trust and investment income, attributable to an overall reduction in market values of investments, and a decline in property and casualty insurance commissions from the effects of a contracting economy on commercial insurance needs, coupled with lower pricing margins within the insurance industry.
In the first quarter of 2009, non-interest expense totaled $14.5 million, up 6% year-over-year and up 7% on a linked quarter basis. These increases were due mostly to increased FDIC insurance expense and higher loan-related costs, primarily external legal and valuation services. Contributing to the year-over-year increase was higher first quarter electronic banking expense as a result of Peoples adjusting Visa-related litigation accruals during the first quarter of 2008, which lowered 2008 first quarter non-interest expense. First quarter salaries and employee benefit costs were down compared to the prior year, reflecting lower corporate incentive plan and stock-based compensation expenses that more than offset increases in employee medical benefit and pension plan costs, which were the main driver of the 7% linked quarter increase in total salaries and employee benefit costs.
PEOPLES BANCORP INC.
First Quarter 2009 Earnings Release
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“Overall, we have made positive progress towards achieving our 2009 operating goals by controlling expenses, maintaining a strong, diversified revenue stream and modestly improving asset quality,” summarized Bradley. “In the first quarter, we fortified our already healthy capital position and expanded lending activities as a result of the TARP capital investment. Several recent developments, coupled with increasing uncertainty regarding future restrictions, are causing us to consider opportunities to repay the TARP funds sooner than the 3 to 5 years originally planned. However, any decision to repay the TARP funds will be contingent on asset quality, total capital and liquidity levels that support expanded lending activities during these challenging times and generate long-term shareholder value.”
Peoples Bancorp Inc. is a diversified financial products and services company with $2.1 billion in assets, 49 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 2009 results of operations today at 11:00 a.m., Eastern Daylight Savings 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.
Safe Harbor Statement:
Certain statements made in this news release regarding Peoples’ financial condition, results of operations, plans, objectives, future performance and business, are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. These forward-looking statements are identified by the fact they are not historical facts and include words such as “anticipate”, “may”, “feel”, “expect”, “believe”, “plan”, and similar expressions.
These forward-looking statements reflect management’s current expectations based on all information available and its knowledge of Peoples’ business and operations. Additionally, Peoples’ financial condition, results of operations, plans, objectives, future performance and business are subject to risks and uncertainties that may cause actual results to differ materially. These factors include, but are not limited to: (1) continued deterioration in the credit quality of Peoples’ loan portfolio could occur due to a number of factors, such as adverse changes in economic conditions that impair the ability of borrowers to repay their loans, the underlying value of the collateral could prove less valuable than otherwise assumed and assumed cash flows may be less favorable 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) changes in prepayment speeds, loan originations, and charge-offs, which may be less favorable than expected and adversely impact the amount of interest income generated; (5) general economic conditions and weakening in the economy, specifically the real estate market, either national or in the states in which Peoples does 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) Peoples’ ability to receive dividends from its subsidiaries; (11) the impact of larger or similar financial institutions encountering problems, which may adversely affect the banking industry and/or Peoples; (12)changes in accounting standards, policies, estimates or procedures, which may impact Peoples’ reported financial condition or results of operations; (13) Peoples’ ability to maintain required capital levels and adequate sources of funding and liquidity; (14) the impact of reputational risk created by these developments on such matters as business generation and retention, funding and liquidity; (15) 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 (16) 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, 2008.
PEOPLES BANCORP INC.
First Quarter 2009 Earnings Release
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Peoples encourages readers of this news release to understand forward-looking statements to be strategic objectives rather than absolute targets of future performance. 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.
PER COMMON SHARE DATA AND SELECTED RATIOS
| | Three Months Ended |
| | March 31, | | December 31, | March 31, |
| | 2009 | | 2008 | | 2008 |
| PER COMMON SHARE: | | | | | |
| Earnings per share: | | | | | |
| Basic | $ 0.37 | | $ (0.30) | | $ 0.55 |
| Diluted | $ 0.37 | | $ (0.30) | | $ 0.55 |
| Cash dividends declared per share | $ 0.23 | | $ 0.23 | | $ 0.22 |
| Book value per share | $ 18.55 | | $ 18.06 | | $ 20.15 |
| Tangible book value per share (a) | $ 12.14 | | $ 11.63 | | $ 13.58 |
| Closing stock price at end of period | $ 12.98 | | $ 19.13 | | $ 24.11 |
| | | | | | |
| SELECTED RATIOS: | | | | | |
| Return on average equity (b) | 7.91% | | -6.24% | | 11.00% |
| Return on average common equity (b) | 8.27% | | -6.24% | | 11.00% |
| Return on average assets (b) | 0.84% | | -0.63% | | 1.21% |
| Efficiency ratio (c) | 58.59% | | 57.26% | | 58.09% |
| Net interest margin (b)(d) | 3.52% | | 3.44% | | 3.51% |
| Dividend payout ratio (e) | 62.30% | | -77.43% | | 40.46% |
| (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) |
| (d) | Information presented on a fully tax-equivalent basis. |
| (e) | Dividends declared on common shares as a percentage of net income available to common shareholders. |
PEOPLES BANCORP INC.
First Quarter 2009 Earnings Release
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CONSOLIDATED STATEMENTS OF INCOME
| | Three Months Ended |
| | March 31, |
| (in $000’s) | 2009 | | 2008 |
| Interest income | $ 26,334 | | $ 27,299 |
| Interest expense | 10,807 | | 13,013 |
| Net interest income | 15,527 | | 14,286 |
| Provision for loan losses | 4,063 | | 1,437 |
| Net interest income after provision for loan losses | 11,464 | | 12,849 |
| | | | |
| Net gain on securities transactions | 326 | | 293 |
| Net loss on asset disposals | (119) | | - |
| | | | |
| Non-interest income: | | | |
| Insurance income | 2,745 | | 2,967 |
| Deposit account service charges | 2,399 | | 2,295 |
| Trust and investment income | 1,058 | | 1,246 |
| Electronic banking income | 923 | | 918 |
| Mortgage banking income | 601 | | 204 |
| Bank owned life insurance | 299 | | 424 |
| Other non-interest income | 212 | | 180 |
| Total non-interest income | 8,237 | | 8,234 |
| Non-interest expense: | | | |
| Salaries and employee benefits costs | 7,524 | | 7,560 |
| Net occupancy and equipment | 1,472 | | 1,426 |
| Professional fees | 741 | | 610 |
| Electronic banking expense | 672 | | 524 |
| Data processing and software | 537 | | 541 |
| FDIC insurance | 487 | | 34 |
| Franchise taxes | 423 | | 416 |
| Amortization of intangible assets | 330 | | 415 |
| Marketing | 234 | | 370 |
| Other non-interest expense | 2,082 | | 1,846 |
| Total non-interest expense | 14,502 | | 13,742 |
| Income before income taxes | 5,406 | | 7,634 |
| Income tax expense | 1,211 | | 1,986 |
| Net income | $ 4,195 | | $ 5,648 |
| Preferred dividends | 341 | | - |
| Net income available to common shareholders | $ 3,854 | | $ 5,648 |
| | | | |
| PER COMMON SHARE DATA: | | | |
| Earnings per share: | | | |
| Basic | $ 0.37 | | $ 0.55 |
| Diluted | $ 0.37 | | $ 0.55 |
| | | | |
| Cash dividends declared per share | $ 0.23 | | $ 0.22 |
| | | | |
| Weighted-average shares outstanding: | | | |
| Basic | 10,344,862 | | 10,302,713 |
| Diluted | 10,355,280 | | 10,345,180 |
| | | | |
| Actual shares outstanding (end of period) | 10,343,974 | | 10,295,414 |
PEOPLES BANCORP INC.
First Quarter 2009 Earnings Release
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CONSOLIDATED BALANCE SHEETS
| | March 31, | | December 31, |
| (in $000’s) | 2009 | | 2008 |
| | | | |
| Assets | | | |
| Cash and cash equivalents: | | | |
| Cash and due from banks | $ 41,711 | | $ 34,389 |
| Interest-bearing deposits in other banks | 55,632 | | 1,209 |
| Total cash and cash equivalents | 97,343 | | 35,598 |
| | | | |
| Available-for-sale investment securities, at fair value (amortized cost of $689,337 | | |
| at March 31, 2009 and $696,855 at December 31, 2008) | 681,816 | | 684,757 |
| Other investment securities, at cost | 23,996 | | 23,996 |
| Total investment securities | 705,812 | | 708,753 |
| | | | |
| Loans, net of deferred fees and costs | 1,100,910 | | 1,104,032 |
| Allowance for loan losses | (24,076) | | (22,931) |
| Net loans | 1,076,834 | | 1,081,101 |
| | | | |
| Loans held for sale | 1,486 | | 791 |
| Bank premises and equipment, net of accumulated depreciation | 24,742 | | 25,111 |
| Bank owned life insurance | 52,172 | | 51,873 |
| Goodwill | 62,520 | | 62,520 |
| Other intangible assets | 3,752 | | 3,886 |
| Other assets | 31,283 | | 32,705 |
| Total assets | $ 2,055,944 | | $ 2,002,338 |
| | | | |
| Liabilities | | | |
| Deposits: | | | |
| Non-interest-bearing deposits | $ 190,754 | | $ 180,040 |
| Interest-bearing deposits | 1,230,837 | | 1,186,328 |
| Total deposits | 1,421,591 | | 1,366,368 |
| | | | |
| Short-term borrowings | 50,027 | | 98,852 |
| Long-term borrowings | 312,932 | | 308,297 |
| Junior subordinated notes held by subsidiary trust | 22,504 | | 22,495 |
| Accrued expenses and other liabilities | 18,583 | | 19,700 |
| Total liabilities | 1,825,637 | | 1,815,712 |
| | | | |
| Stockholders' Equity | | | |
| Preferred stock, no par value (50,000 shares authorized, 39,000 shares issued | | |
| at March 31, 2009, and 0 shares issued at December 31, 2008) | 38,470 | | - |
| Common stock, no par value (24,000,000 shares authorized, 10,989,887 shares | | |
| issued at March 31, 2009, and 10,975,364 shares issued at December 31, 2008), | 165,540 | | 164,716 |
| including shares in treasury | | | |
| Retained earnings | 51,965 | | 50,512 |
| Accumulated comprehensive loss, net of deferred income taxes | (9,292) | | (12,288) |
| Treasury stock, at cost (645,913 shares at March 31, 2009, and | | | |
| 641,480 shares at December 31, 2008) | (16,376) | | (16,314) |
| Total stockholders' equity | 230,307 | | 186,626 |
| Total liabilities and stockholders' equity | $ 2,055,944 | | $ 2,002,338 |
PEOPLES BANCORP INC.
First Quarter 2009 Earnings Release
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SELECTED FINANCIAL INFORMATION
| | March 31, | | December 31, | | September 30, | | June 30, | | March 31, |
| (in $000’s, end of period) | 2009 | | 2008 | | 2008 | | 2008 | | 2008 |
| | | | | | | | | | |
| Loan Portfolio | | | | | | | | | |
| Commercial, mortgage | $ 498,395 | | $ 478,298 | | $ 490,978 | | $ 499,043 | | $ 498,426 |
| Commercial, other | 174,660 | | 178,834 | | 181,783 | | 186,346 | | 180,523 |
| Real estate, construction | 62,887 | | 77,917 | | 70,899 | | 53,170 | | 72,326 |
| Real estate, mortgage | 224,843 | | 231,778 | | 234,823 | | 234,870 | | 237,366 |
| Home equity lines of credit | 47,454 | | 47,635 | | 46,909 | | 44,595 | | 43,101 |
| Consumer | 90,741 | | 87,902 | | 85,983 | | 83,605 | | 81,108 |
| Deposit account overdrafts | 1,930 | | 1,668 | | 2,235 | | 3,223 | | 2,879 |
| Total loans | 1,100,910 | | 1,104,032 | | 1,113,610 | | 1,104,852 | | 1,115,729 |
| | | | | | | | | | |
| Deposit Balances | | | | | | | | | |
| Interest-bearing deposits: | | | | | | | | | |
| Retail certificates of deposit | $ 637,125 | | $ 626,195 | | $ 563,124 | | $ 557,406 | | $ 549,439 |
| Interest-bearing demand accounts | 214,922 | | 187,100 | | 199,534 | | 202,063 | | 211,708 |
| Money market deposit accounts | 227,840 | | 213,498 | | 175,120 | | 172,048 | | 156,206 |
| Savings accounts | 125,985 | | 115,419 | | 118,634 | | 116,485 | | 114,433 |
| Total retail interest-bearing deposits | 1,205,872 | | 1,142,212 | | 1,056,412 | | 1,048,002 | | 1,031,786 |
| Brokered certificates of deposits | 24,965 | | 44,116 | | 9,971 | | 39,781 | | 39,756 |
| Total interest-bearing deposits | 1,230,837 | | 1,186,328 | | 1,066,383 | | 1,087,783 | | 1,071,542 |
| Non-interest-bearing deposits | 190,754 | | 180,040 | | 184,474 | | 193,265 | | 177,449 |
| Total deposits | 1,421,591 | | 1,366,368 | | 1,250,857 | | 1,281,048 | | 1,248,991 |
| | | | | | | | | | |
| Asset Quality | | | | | | | | | |
| Nonperforming assets: | | | | | | | | | |
| Loans 90+ days past due and accruing | $ 41 | | $ – | | $ 1,852 | | $ 290 | | $ 438 |
| Nonaccrual loans | 38,535 | | 41,320 | | 33,896 | | 20,910 | | 17,061 |
| Total nonperforming loans | 38,576 | | 41,320 | | 35,748 | | 21,200 | | 17,499 |
| Other real estate owned | 265 | | 525 | | 260 | | 411 | | 343 |
| Total nonperforming assets | $ 38,841 | | $ 41,845 | | $ 36,008 | | $ 21,611 | | $ 17,842 |
| | | | | | | | | | |
| Allowance for loan losses as a percent of | | | | | | | | | |
| nonperforming loans | 62.4% | | 55.5% | | 53.6% | | 71.8% | | 91.2% |
| Nonperforming loans as a percent of total loans | 3.50% | | 3.74% | | 3.21% | | 1.92% | | 1.57% |
| Nonperforming assets as a percent of total assets | 1.89% | | 2.09% | | 1.88% | | 1.13% | | 0.94% |
| Nonperforming assets as a percent of total loans and | | | | | | | | |
| other real estate owned | 3.53% | | 3.79% | | 3.23% | | 1.96% | | 1.60% |
| Allowance for loan losses as a percent of total loans | 2.19% | | 2.08% | | 1.72% | | 1.38% | | 1.43% |
| | | | | | | | | | |
| Capital Information(a) | | | | | | | | | |
| Tier 1 risk-based capital | 14.80% | | 11.88% | | 12.32% | | 12.10% | | 12.12% |
| Total risk-based capital ratio (Tier 1 and Tier 2) | 16.08% | | 13.19% | | 13.65% | | 13.33% | | 13.43% |
| Leverage ratio | 9.97% | | 8.18% | | 8.66% | | 8.72% | | 8.81% |
| Tier 1 capital | $ 197,258 | | $ 156,254 | | $ 160,558 | | $ 159,242 | | $ 158,919 |
| Total capital (Tier 1 and Tier 2) | $ 214,389 | | $ 173,470 | | $ 177,869 | | $ 175,397 | | $ 176,083 |
| Total risk-weighted assets | $ 1,333,060 | | $ 1,315,657 | | $ 1,303,205 | | $ 1,316,021 | | $ 1,310,895 |
| Tangible equity to tangible assets (b) | 8.24% | | 6.21% | | 7.03% | | 7.30% | | 7.67% |
| Tangible common equity to tangible assets (b) | 6.31% | | 6.21% | | 7.03% | | 7.30% | | 7.67% |
(a) March 31, 2009 data based on preliminary analysis and subject to revision.
(b) Excludes balance sheet impact of intangible assets acquired through acquisitions on both total stockholders’ equity and total assets.
PEOPLES BANCORP INC.
First Quarter 2009 Earnings Release
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PROVISION FOR LOAN LOSSES INFORMATION
| | Three Months Ended |
| | March 31, | | December 31, | March 31, |
| (in $000’s) | 2009 | | 2008 | | 2008 |
| Provision for Loan Losses | | | | | |
| Provision for checking account overdrafts | $ 63 | | $ 507 | | $ 37 |
| Provision for other loan losses | 4,000 | | 12,935 | | 1,400 |
| Total provision for loan losses | $ 4,063 | | $ 13,442 | | $ 1,437 |
| | | | | | |
| Net Charge-Offs | | | | | |
| Gross charge-offs | $ 3,298 | | $ 10,101 | | $ 1,638 |
| Recoveries | 380 | | 433 | | 436 |
| Net charge-offs | $ 2,918 | | $ 9,668 | | $ 1,202 |
| | | | | | |
| Net Charge-Offs by Type | | | | | |
| Commercial | $ 2,468 | | $ 8,835 | | $ 862 |
| Real estate | 186 | | 220 | | 160 |
| Overdrafts | 162 | | 389 | | 87 |
| Consumer | 102 | | 224 | | 93 |
| Total net charge-offs | $ 2,918 | | $ 9,668 | | $ 1,202 |
| | | | | | |
| Net charge-offs as a percent of loans (annualized) | 1.07% | | 3.45% | | 0.43% |
SUPPLEMENTAL INFORMATION
| | March 31, | | December 31, | | September 30, | | June 30, | | March 31, |
| (in $000’s, end of period) | 2009 | | 2008 | | 2008 | | 2008 | | 2008 |
| | | | | | | | | | |
| Trust assets under management | $ 664,784 | | $ 685,705 | | $ 734,483 | | $ 770,714 | | $ 775,834 |
| Brokerage assets under management | $ 169,268 | | $ 184,301 | | $ 207,284 | | $ 216,930 | | $ 221,340 |
| Mortgage loans serviced for others | $ 199,613 | | $ 181,440 | | $ 180,441 | | $ 182,299 | | $ 178,763 |
| Employees (full-time equivalent) | 547 | | 546 | | 545 | | 554 | | 556 |
| Announced treasury share plans: (a) | | | | | | | | | |
| Total shares authorized for plan | – | | 500,000 | | 500,000 | | 500,000 | | 500,000 |
| Shares purchased | – | | – | | – | | – | | 13,600 |
| Average price | $ – | | $ – | | $ – | | $ – | | $ 21.59 |
(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, which expired
December 31, 2008.
PEOPLES BANCORP INC.
First Quarter 2009 Earnings Release
- Page 9 of 9 -
CONSOLIDATED AVERAGE BALANCE SHEET AND NET INTEREST INCOME
| | Three Months Ended |
| | March 31, 2009 | | December 31, 2008 | | March 31, 2008 |
| (in $000’s) | Balance | Income/ Expense | Yield/ Cost | Balance | Income/ Expense | Yield/ Cost | Balance | Income/ Expense | Yield/ Cost |
| Assets | | | | | | | | | | | |
| Short-term investments | $ 25,678 | $ 16 | 0.25% | | $ 1,455 | $ 4 | 0.96% | | $ 4,017 | $ 32 | 3.11% |
| Investment securities (a)(b) | 711,475 | 10,011 | 5.63% | | 660,467 | 9,213 | 5.58% | | 581,638 | 7,810 | 5.37% |
| Gross loans (a) | 1,107,295 | 16,731 | 6.12% | | 1,116,024 | 17,487 | 6.25% | | 1,113,023 | 19,879 | 7.17% |
| Allowance for loan losses | (23,980) | | | | (20,650) | | | | (16,240) | | |
| Total earning assets | 1,820,468 | 26,758 | 5.92% | | 1,757,296 | 26,704 | 6.06% | | 1,682,438 | 27,721 | 6.61% |
| | | | | | | | | | | | |
| Intangible assets | 66,261 | | | | 66,589 | | | | 67,831 | | |
| Other assets | 136,756 | | | | 131,286 | | | | 128,307 | | |
| Total assets | 2,023,485 | | | | 1,955,171 | | | | 1,878,576 | | |
| | | | | | | | | | | | |
| Liabilities and Equity | | | | | | | | | | | |
| Interest-bearing deposits: | | | | | | | | | | | |
| Savings accounts | 118,552 | 124 | 0.42% | | 116,807 | 167 | 0.57% | | 108,525 | 122 | 0.45% |
| Interest-bearing demand accounts | 195,707 | 735 | 1.52% | | 194,767 | 806 | 1.65% | | 197,998 | 982 | 1.99% |
| Money market deposit accounts | 222,649 | 649 | 1.18% | | 177,795 | 755 | 1.69% | | 152,202 | 1,058 | 2.80% |
| Brokered certificates of deposits | 27,298 | 274 | 4.07% | | 39,947 | 347 | 3.46% | | 53,334 | 695 | 5.24% |
| Retail certificates of deposit | 633,500 | 5,202 | 3.33% | | 610,009 | 5,531 | 3.61% | | 523,929 | 5,608 | 4.31% |
| Total interest-bearing deposits | 1,197,706 | 6,984 | 2.36% | | 1,139,325 | 7,606 | 2.66% | | 1,035,988 | 8,465 | 3.29% |
| | | | | | | | | | | | |
| Short-term borrowings | 69,297 | 169 | 0.98% | | 100,266 | 377 | 1.47% | | 188,615 | 1,539 | 3.24% |
| Long-term borrowings | 334,896 | 3,654 | 4.39% | | 320,880 | 3,617 | 4.41% | | 257,598 | 3,009 | 4.65% |
| Total borrowed funds | 404,193 | 3,823 | 3.80% | | 421,146 | 3,994 | 3.73% | | 446,213 | 4,548 | 4.05% |
| Total interest-bearing liabilities | 1,601,899 | 10,807 | 2.73% | | 1,560,471 | 11,600 | 2.95% | | 1,482,201 | 13,013 | 3.52% |
| | | | | | | | | | | | |
| Non-interest-bearing deposits | 189,121 | | | | 183,993 | | | | 172,994 | | |
| Other liabilities | 17,405 | | | | 13,387 | | | | 16,889 | | |
| Total liabilities | 1,808,425 | | | | 1,757,851 | | | | 1,672,084 | | |
| | | | | | | | | | | | |
| Preferred equity | 26,068 | | | | - | | | | - | | |
| Common equity | 188,992 | | | | 197,320 | | | | 206,492 | | |
| Stockholders’ equity | 215,060 | | | | 197,320 | | | | 206,492 | | |
| Total liabilities and equity | $ 2,023,485 | | | | $ 1,955,171 | | | | $ 1,878,576 | | |
| | | | | | | | | | | | |
| Net interest income/spread (a) | $ 15,951 | 3.19% | | | $ 15,104 | 3.11% | | | $ 14,708 | 3.09% |
| Net interest margin (a) | | | 3.52% | | | | 3.44% | | | | 3.51% |
| (a) Information presented on a fully tax-equivalent basis. | | | | | | |
| (b) Average balances are based on carrying value. | | | | | | | | |
END OF RELEASE
