EXHIBIT 99 NEWS RELEASE FOR IMMEDIATE RELEASE Contact: John W. Conlon, Chief Financial Officer January 19, 2000 (740) 373-3155 PEOPLES BANCORP ANNOUNCES 26th CONSECUTIVE YEAR OF INCREASED EARNINGS ---------------------------------------------------------------------------- Earnings per share up 10% to $1.69 MARIETTA, Ohio - Peoples Bancorp Inc. (Nasdaq: PEBO) today announced its 26th consecutive year of increased earnings. Strong net interest income and other revenue enhancements enabled the Company to achieve record profits. Net income for 1999 totaled $10,718,000, up $673,000 or 6.7% compared to 1998's net income of $10,045,000. In the fourth quarter of 1999, the Company reported net income of $2,781,000, an increase of $8,000 compared to the fourth quarter of 1998. Diluted earnings per share reached $1.69 in 1999, up $0.15 (or 9.7%) from 1998. In the fourth quarter of 1999, diluted earnings per share totaled $0.45, up $0.02 (or 4.7%) compared to the same period last year. Per share references do not reflect the 10% stock dividend to be issued March 14, 2000. Cash basis earnings per share were $1.98 in 1999, up 11.9% from $1.77 in 1998. In the fourth quarter of 1999, cash earnings per share were $0.53, up 6.0% from $0.50 a year earlier. Cash basis earnings provide investors with a more meaningful comparison of the Company's financial results with competitors that make acquisitions using pooling of interest accounting. Return on stockholders' equity (ROE) improved in 1999, reaching 13.27% compared to 12.21% in 1998. In the fourth quarter of 1999, ROE reached 15.02%, compared to 13.01% for the same period in 1998. This enhancement resulted from core earnings growth, as well as stock repurchases of 5% of the Company's outstanding shares in 1999 and decreases in market value of the Company's available-for-sale investment portfolio, which combined to lower the Company's equity in the second half of 1999. Net interest income totaled $9,830,000 in the fourth quarter of 1999, an increase of $1,316,000 (or 15.5%) compared to 1998's fourth quarter. For the year ended December 31, 1999, net interest income increased $4,940,000 (or 14.9%) to $38,088,000. The growth in net interest income can be attributed primarily to balance sheet growth strategies implemented in 1999 to leverage the Company's $30 million of 8.62% Capital Securities issued in 1999 through PEBO Capital Trust I. Net interest margin decreased for the three months and year ended December 31, 1999, due to interest rate compression between loan pricing and funding source costs, as well as the expense to build cash reserves in the fourth quarter of 1999 for potential Y2K-related cash withdrawals. The Company had total non-interest income of $7,633,000 and $2,045,000 for the year and three months ended December 31, 1999, increases of 11.9% and 4.1%, respectively. All of the Company's non-interest income areas had strong growth compared to 1998, including increased fiduciary revenues, electronic banking income, insurance revenues, and a full-year's impact of deposit account service charges generated from the mid-1998 acquisition of multiple banking centers and associated deposits. Peoples Bancorp reported increased non-interest expense of $4,921,000 and $1,530,000 for the year and three months ended December 31, 1999, increases of 21.1% and 25.4%, respectively. Increased non-interest expense was attributable to full-year expenses such as salaries and benefits, intangible amortization expense (related to the mid-1998 acquisition of multiple banking centers), as well as first-year interest costs related to the Capital Securities issued in 1999. The Company's efficiency ratio performance declined in the fourth quarter and 1999 due primarily to the Capital Securities interest costs, while supporting enhancement in other performance ratios such as ROE and earnings per share. Robert E. Evans, Peoples Bancorp's President and Chief Executive Officer, commented, "Our results of operations in 1999 reflect improvement in several key performance areas, including top-line revenue generation and loan growth. In 2000, our focus will continue to be expanding our relationships with customers and responding to their changing needs. Our previously announced plan to consolidate our banks under a single charter will enhance our customers' financial alternatives and our customers' choices of delivery methods." Peoples Bancorp Inc. is a diversified financial services holding company headquartered in Marietta, Ohio, with over $1 billion in assets. Peoples Bancorp operates 38 financial service locations and 24 ATM's in the states of Ohio, West Virginia, and Kentucky. Peoples Bancorp's banking subsidiaries include The Peoples Banking and Trust Company with offices in Ohio and West Virginia; The First National Bank of Southeastern Ohio with three Ohio offices; and Peoples Bank FSB, with four Kentucky offices. Through its subsidiaries, Peoples Bancorp offers complete banking services and makes available other financial services, such as trust services, investment and insurance products, and internet banking. Peoples Bancorp's common stock is traded through the Nasdaq National Market System under the symbol "PEBO." Learn more about Peoples Bancorp or enroll in Peoples OnLine Connection, Peoples Bank's internet banking product, at www.peoplesbancorp.com. PEOPLES BANCORP INC. (Nasdaq: PEBO) Financial Highlights (Unaudited) Three Months Ended For the Year Ended March 31, ----------------------------- ----------------------------- December 31, December 31, ----------------------------- ----------------------------- 1999 1998 1999 1998 ----------------------------- ----------------------------- PER SHARE DATA (a) Net income per share: Basic $ 0.46 $ 0.44 $ 1.73 $ 1.59 Diluted 0.45 0.43 1.69 1.54 Cash basis earnings - diluted (b) 0.53 0.50 1.98 1.77 Dividends declared per share $ 0.14 $ 0.13 $ 0.55 $ 0.48 Weighted average shares outstanding: Basic 6,026,073 6,310,812 6,191,993 6,319,437 Diluted 6,170,197 6,469,411 6,353,675 6,510,917 PERFORMANCE AND ASSET QUALITY RATIOS Return on average equity 15.02% 13.01% 13.27% 12.21% Cash basis return on average equity (b) 24.09% 20.62% 20.96% 17.82% Return on average assets 1.05% 1.26% 1.09% 1.20% Cash basis return on average assets (b) 1.25% 1.51% 1.30% 1.41% Net interest margin (fully tax equivalent) 4.16% 4.37% 4.35% 4.47% Efficiency ratio 55.40% 52.66% 53.94% 50.46% Net loan chargeoffs as a percentage of average loans 0.09% 0.07% 0.19% 0.22% End of period: Nonperforming assets as a percentage of total loans (c) 0.24% 0.28% 0.24% 0.28% Allowance for loan losses as a percentage of total loans 1.56% 1.67% 1.56% 1.67% CONSOLIDATED AVERAGE BALANCES Average gross loans $ 642,258 $ 551,293 $ 603,675 $ 532,711 Average earning assets 967,195 805,683 904,747 766,240 Average total assets 1,058,459 881,458 985,243 831,296 Average non-interest bearing deposits 82,581 76,892 78,799 70,064 Average interest bearing deposits 642,144 636,144 630,408 587,217 Average stockholders' equity $ 74,056 $ 85,242 $ 80,780 $ 82,267 PERIOD END CAPITAL RATIOS Tier 1 Risk based capital 12.51% 10.54% 12.51% 10.54% Total Risk-based capital ratio (Tier 1 and Tier 2) 14.23% 11.95% 14.23% 11.95% Leverage ratio 8.29% 7.08% 8.29% 7.08% ------------- ------------- ------------- ------------- <FN> (a) Share data does not reflect 10% stock dividend to be issued March 14, 2000. (b) Excludes after-tax impact of intangible amortization expense and removes balance sheet effect of intangible assets acquired through use of purchase accounting for acquisitions. (c) Nonperforming assets include loans 90 days past due and accruing, nonaccrual loans, and other real estate owned. </FN> PEOPLES BANCORP INC. CONDENSED CONSOLIDATED BALANCE SHEETS -------------- -------------- Unaudited - In Thousands (except share data) December 31, December 31, ASSETS 1999 1998 -------------- -------------- Cash and cash equivalents $ 43,751 $ 40,121 Available-for-sale investment securities, at estimated fair value 328,306 235,569 Loans, net of unearned interest 659,833 567,917 Allowance for loan losses (10,264) (9,509) ------------- ------------ Net loans 649,569 558,408 Bank premises and equipment 15,321 14,826 Other assets 38,503 31,360 ------------- ------------ TOTAL ASSETS $ 1,075,450 $ 880,284 ------------- ------------ LIABILITIES Non-interest bearing deposits $ 83,267 $ 80,884 Interest bearing deposits 644,940 633,284 ------------- ------------ Total deposits 728,207 714,168 Short-term borrowings (includes securities sold under repurchase agreements) 87,439 32,514 agreements, Long-term borrowings 150,338 40,664 Accrued expenses and other liabilities 7,606 6,924 ------------- ------------ TOTAL LIABILITIES 973,590 794,270 Guaranteed preferred beneficial interests in junior subordinated debentures 28,986 --- STOCKHOLDERS' EQUITY Common stock, no par value (6,387,509 shares issued and 5,988,847 outstanding at December 31, 1999) 65,043 50,807 Accumulated comprehensive (loss) income, net of deferred income taxes (7,654) 3,588 Retained earnings 26,241 33,441 Treasury stock, at cost (398,662 shares at December 31, 1999) (10,756) (1,822) ------------- ------------ TOTAL STOCKHOLDERS' EQUITY 72,874 86,014 TOTAL LIABILITIES, MINORITY INTERESTS AND ------------- ------------ STOCKHOLDERS' EQUITY $ 1,075,450 $ 880,284 ------------- ------------ PEOPLES BANCORP INC. CONDENSED STATEMENTS OF INCOME --------------------------- -------------------------- Three Months Ended For the Year Ended December 31, December 31, Unaudited -In Thousands 1999 1998 1999 1998 --------------------------- -------------------------- Interest income $ 19,635 $ 16,239 $ 72,346 $ 63,645 Interest expense 9,805 7,725 34,258 30,497 ----------- ------------ ----------- ----------- Net interest income 9,830 8,514 38,088 33,148 Provision for loan losses 447 537 1,878 2,325 ----------- ------------ ----------- ----------- Net interest income after provision for loan losses 9,383 7,977 36,210 30,823 Other income 2,045 1,965 7,633 6,820 Gain (loss) on securities transactions 10 --- (104) 418 Other expense 7,548 6,018 28,197 23,276 ----------- ------------ ----------- ----------- Income before income taxes 3,890 3,924 15,542 14,785 Income taxes 1,109 1,151 4,824 4,740 ----------- ------------ ----------- ----------- NET INCOME $ 2,781 $ 2,773 $ 10,718 $ 10,045 ----------- ------------ ----------- ----------- END OF RELEASE