Nasdaq: PEBO April 12, 2007
Welcome to our …
Annual Shareholders Meeting
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Today’s agenda
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Updated profile of Peoples Bancorp.
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2006 in review.
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“Working Together”: Universal Financial Services.
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Strategies and future outlook.
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Q&A session.
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Disclaimer
Please note and understand that commentary in this presentation may contain projections or other forward-looking statements regarding future events or Peoples Bancorp’s (“Peoples”) future financial performance. These statements are based on management’s current expectations. The statements in this presentation which are not historical fact are forward looking statements that involve a number of risks and uncertainties, including, but not limited to, the interest rate environment; the effect of federal and/or state banking, insurance, and tax regulations; the effect of technological changes; the effect of economic conditions; the impact of competitive products and pricing; and other risks detailed in Peoples’ Securities and Exchange Commission filings. Although management believes that the expectations in these forward-looking statements are based on reasonable assumptions within the bounds of management's knowledge of Peoples’ business and operations, it is possible that actual results may differ materially from these projections. Peoples disclaims any responsibility to update these forward-looking statements.
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Management change
Earlier this week …
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Chief Financial Officer and Treasurer Donald J. Landers resigned his position.
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Carol A. Schneeberger, Executive Vice President of Operations, has been named interim CFO and Treasurer.
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Nearly 30 years experience and active member of key financial committees at Peoples Bancorp.
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Search for permanent CFO to begin in the near-term.
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PEBO at a glance
Banking
Investments
Insurance
e-Banking
Assets: $1.9 billion
Associates: 580
Locations: 48
ATMs: 37
130,000 customers
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2006
in
review
review
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Earnings and dividend growth
All data adjusted for stock splits and dividends.
$2.01
$0.83
$29.70
$15.89
$1.47
$0.49
EPS CAGR = 6%
DPS CAGR = 11% (41 consecutive annual increases)
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Dividends since 1990
All data adjusted for stock splits and dividends.
$0.83
$0.15
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2006 Performance Ratios
Peoples Bancorp Inc. | Midwest Peer Median (1) | |
1 Yr EPS Growth | 3.6% | 4.7% |
Return on Assets | 1.15% | 1.01% |
Return on Equity | 11.33% | 12.56% |
Return on Tangible Equity | 18.87% | 15.71% |
Efficiency Ratio (2) | 57.51% | 62.57% |
(1) Publicly traded financial companies in Midwest US with $1 to $5 billion in assets. Source: SNL Securities.
(2) Lower number reflects better performance.
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Net interest margin
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US Treasury yield curve
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US Treasury yield curve
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US Treasury yield curve
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US Treasury yield curve
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Non-interest income
($ in millions)
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$773
(in millions)
Loan growth
(in millions)
$1,296
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Loan quality
Peoples Bancorp Inc. 2006 | Midwest Peer Group Median 2006 | Peoples Bancorp Inc. Last 5 Year Average | |
Net Loan Chargeoffs to Average Loans | 0.29% | 0.18% | 0.24% |
Nonperforming Loans to Total Loans | 0.88% | 0.67% | 0.75% |
Allowance for Loan Losses to Total Loans | 1.28% | 1.11% | 1.44% |
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Customer deposit growth
$814
$1,104
($ in millions, excludes brokered CD’s)
+5%
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“Freedom Force”
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Targeted marketing campaign designed to attract new
customers.
customers.
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13% increase in checking account sales over previous year.
“Remote Deposit Capture”
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Technology that makes banking easier for businesses.
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Allows us to gather deposits in areas with fewer
branches.
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Summary Financial Data
($000) | At or For December 31, 2006 | At or For December 31, 2005 | Variance |
Total Assets | $1,875,000 | $1,855,000 | + 1% |
Total Loans | $1,132,000 | $1,072,000 | + 6% |
Allowance for Loan Losses | $14,509 | $14,720 | - 1% |
Total Deposits (1) | $1,104,000 | $1,048,000 | + 5% |
Total Revenues | $84,342 | $81,473 | + 4% |
Net Interest Income | $53,217 | $52,306 | + 2% |
Non-Interest Income | $31,125 | $29,167 | + 7% |
Provision for Loan Losses | $3,622 | $2,028 | + 79% |
Non-Interest Expense | $51,297 | $51,342 | Flat |
Net Income | $21,558 | $20,499 | + 5% |
(1) Excludes brokered CD’s.
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Working
Together:
We're
We're
Better !
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E-Banking capabilities
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Full-service offices
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Loan production office in Westerville, OH
Comprehensive
commercial and
consumer
banking
products
commercial and
consumer
banking
products
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Assets under management $845 million
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Services $735 million
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Trusts and Estates
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Investment Management
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Employee Benefit Plans
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Brokerage (Raymond James) $110 million
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2006 property and casualty revenues: $7.8 million.
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Primarily commercial lines, with some personal lines, life, and health insurance.
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Over 40 licensed producers.
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Opportunity for continued integration of customer relationships.
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Our strategies and
future outlook …
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“Take care of our customers”
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Have size and scope to offer universal financial services.
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Be small enough to maintain fast, friendly community minded approach.
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Build lasting relationships with our customers.
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Win with our people.
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Be a good teammate.
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To each other.
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To our communities.
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Community Reinvestment Act Performance Evaluation
Peoples Bancorp associates volunteered over 25,000
hours to local charities and community events
Peoples Bank Earned a CRA rating of
Outstanding
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Our strategies
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Focus on customers first.
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Build lasting relationships by anticipating and meeting their needs.
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Work together as a true team across all product lines to leverage our “universal” financial services offering.
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Continue technology enhancements that make it easier for customers to do business with us.
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Expand in economically vibrant markets.
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Lancaster, OH expansion
2Q 2007
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2006 Merger & Acquisition Activity
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Opened de novo full-service office with ATM in Lancaster, OH
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Acquired full-service office in Carroll, OH
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Sold Chesterhill, OH & South Shore, KY offices.
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-
Full Service
Office with
Drive-Thru and
ATM
Drive-Thru and
ATM
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Expected
opening in
October 2007
October 2007
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Will be 2nd office
in Huntington
Huntington, WV expansion
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Some challenges
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Flat to inverted yield curve.
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When will it change?
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Economic conditions.
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If economy slows, will loan quality be OK?
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Competition for deposits.
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Interest rate environment and “thirst” for funding
sources at an all time high.
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Increasing regulatory burden.
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Now more than ever . . .
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PEBO stock price vs. S&P 100 in last 12 months
PEBO
S&P 500
YTD PEBO – down 12.9%
YTD Midwest Peer Median – down 9.7%
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Measures PEBO investment on 3/31/1997 through 3/31/2007.
Assumes quarterly dividend reinvestment.
10.1%
Compound Average
Annual Return
$2,617
5-year CAGR = 7.7%
20-year CAGR = 14.5%
10-year total shareholder return
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Our strengths
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Diversified revenue streams.
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Our product offerings make us truly a “full-service”
company ... Unique for our size.
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Proven track record of revenue growth.
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Core competency of growth through acquisition.
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Consistent dividend increases.
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41 consecutive years.
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DISCUSSION
Mark Bradley, President and Chief Executive Officer
Thank you for your attendance and support !
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