EXHIBIT 99 NEWS RELEASE FOR IMMEDIATE RELEASE Contact: John W. Conlon, Chief Financial Officer April 12, 2000 (740) 373-3155 PEOPLES BANCORP REPORTS 16% INCREASE IN FIRST QUARTER EARNINGS ---------------------------------------------------------------------------- MARIETTA, Ohio - Today Peoples Bancorp Inc. (Nasdaq: PEBO) announced record first quarter earnings, as growth in net interest income and non-interest revenues contributed to increased net income. Diluted earnings per share reached $0.43 in the first quarter of 2000, up $0.06 (or 16.2%) from 1999's first quarter. Net income for the three months ended March 31, 2000, totaled $2.9 million, up $0.3 million (or 8.8%) from the same period last year. Cash basis earnings per share grew $0.06 per share (or 14.0%) to $0.49 in the first quarter of 2000, compared to $0.43 last year. Return on stockholders' equity (ROE) significantly improved in the first quarter of 2000, reaching 15.85% compared to 12.12% for the same period last year. "Our first quarter performance reflects our commitment to increasing shareholder value through enhanced earnings," said Robert E. Evans, Peoples Bancorp's President and CEO. "In addition, the recent share repurchase program has allowed us to better leverage our strong capital base." Since April, 1999, the Company has repurchased approximately 6% of its outstanding common shares through open market transactions. The improvement in ROE resulted from core earnings growth, as well as recent stock repurchases and decreases in the market value of the Company's available-for-sale investment portfolio. Net interest income grew $1.4 million (or 15.6%) to $10.1 million in the first quarter of 2000 compared to the same period a year earlier, due primarily to earning asset growth strategies implemented in 1999 as well as internal loan growth in the first three months of the year. Since year-end 1999, Peoples Bancorp's total loans grew nearly $13 million (or 2.0%) to $672.7 million at March 31, 2000. The Company's allowance for loan losses increased $0.4 million (or 3.5%) to $10.6 million at the end of the first quarter and represents 1.58% of total loans. Peoples Bancorp's asset quality continues to be above peer group levels and reflects the overall quality of the Company's loan portfolio. Non-interest income exhibited strong growth in the first quarter of 2000, as revenues increased 15.5% to $2.1 million compared to 1999's first quarter total of $1.8 million, a growth rate of 15.5% or $0.3 million. All of Peoples Bancorp's non-interest income areas reported growth in the first quarter of 2000, including investment, insurance, electronic banking, trust, and deposit account fee based revenues. Non-interest expense totaled $7.6 million for the first three months of 2000, an increase of $1.3 million (or 21.2%) compared to the same period a year earlier. Non-interest expense increased due to the impact of debt service costs associated with the Company's issuance of $30 million of 8.62% Capital Securities in April, 1999, as well as recent market expansion and associated costs to provide enhanced customer services such as investments and insurance products. Evans continued, "We continue to make investments in those processes that enhance customer access to our many products and services, ranging from educational opportunities for our associates to e-commerce initiatives. Peoples Bancorp's goal is to be the leading financial services provider in the markets we serve, and first quarter results indicate we are making strides to provide diversified, integrated products and services that meet the needs of our expanding customer base." Peoples Bancorp Inc. is a diversified financial services company with over $1 billion in assets. The Company's lead subsidiary is Peoples Bank, which offers complete banking products and services through 38 financial service locations and 25 ATM's in the states of Ohio, West Virginia, and Kentucky. Peoples Bank also makes available other financial services via Peoples Investments, which provides customer-tailored solutions for fiduciary needs, investment alternatives, and asset management needs (securities are offered exclusively through Raymond James Financial Services, member NASD/SIPC, an independent broker/dealer located at Peoples Bank). Peoples Bank also provides a full set of life, property and casualty insurance products and services, through Peoples Insurance Agency, Inc. 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 March 31, ---------------------------- March 31, 2000 1999 ---------------------------- PER SHARE DATA Net income per share: Basic 0.43 $ 0.38 Diluted 0.43 0.37 Cash basis earnings - diluted (a) 0.49 0.43 Dividends declared per share 0.14 $ 0.12 Weighted average shares outstanding: Basic 6,602,504 6,979,409 Diluted 6,705,526 7,140,949 PERFORMANCE AND ASSET QUALITY RATIOS Return on average equity 15.85% 12.12% Cash basis return on average equity (a) 24.93% 18.99% Return on average assets 1.08% 1.21% Cash basis return on average assets (a) 1.26% 1.45% Net interest margin (fully tax equivalent) 4.25% 4.54% Efficiency ratio 55.92% 51.16% Net loan chargeoffs as a percentage of average loans 0.02% 0.03% End of period: Nonperforming assets as a percentage of total assets (b) 0.22% 0.22% Allowance for loan losses as a percentage of total loans 1.58% 1.72% CONSOLIDATED AVERAGE BALANCES (in thousands) Average gross loans 662,899 $ 570,433 Average earning assets 977,487 797,684 Average total assets 1,056,160 871,789 Average non-interest bearing deposits 80,323 76,073 Average interest bearing deposits 650,073 630,153 Average stockholders' equity 72,225 $ 86,815 PERIOD END CAPITAL RATIOS Tier 1 Risk based capital 12.58% 10.83% Total Risk-based capital ratio (Tier 1 and Tier 2) 14.24% 12.27% Leverage ratio 8.46% 7.41% ----------- ------------ - ------------------------------------------------------------------------------------ <FN> (a) Excludes after-tax impact of intangible amortization expense and removes balance sheet effect of intangible assets acquired through use of purchase accounting for acquisitions. (b) 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 --------------- --------------- (in thousands) March 31, December 31, 2000 1999 --------------- --------------- ASSETS Cash and cash equivalents 32,983 43,751 Available-for-sale investment securities, at estimated fair value 324,268 328,306 Loans, net of unearned interest 672,736 659,833 Allowance for loan losses (10,628) (10,264) --------------- --------------- Net loans 662,108 649,569 Bank premises and equipment 14,907 15,321 Other assets 40,021 38,503 --------------- --------------- TOTAL ASSETS 1,074,287 1,075,450 --------------- --------------- LIABILITIES Non-interest bearing deposits 80,957 83,267 Interest bearing deposits 660,441 644,940 --------------- --------------- Total deposits 741,398 728,207 Federal funds purchased, securities sold under repurchase agreements, and other short term borrowings 73,368 87,439 Long-term borrowings 150,181 150,338 Accrued expenses and other liabilities 7,988 7,606 --------------- --------------- TOTAL LIABILITIES 972,935 973,590 Guaranteed preferred beneficial interests in junior subordinated debentures 28,994 28,986 STOCKHOLDERS' EQUITY Common stock, no par value (6,661,464 shares issued and 6,537,180 outstanding at March 31, 2000) 66,447 65,043 Accumulated comprehensive income , net of deferred income taxes (9,164) (7,654) Retained earnings 17,863 26,241 Treasury stock, at cost (124,284 shares at March 31, 2000) (2,788) (10,756) --------------- --------------- TOTAL STOCKHOLDERS' EQUITY 72,358 72,874 --------------- --------------- TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY 1,074,287 1,075,450 PEOPLES BANCORP INC. CONDENSED STATEMENTS OF INCOME ------------------------ (in thousands) Three Months Ended ------------------------ March 31, ------------------------ 2000 1999 ----------- ----------- Interest income $ 20,112 15,985 Interest expense 10,008 7,242 ----------- ----------- Net interest income 10,104 8,743 Provision for loan losses 522 537 ----------- ----------- Net interest income after provision for loan losses 9,582 8,206 Other income 2,129 1,844 Loss on securities transactions (11) --- Amortization of intangibles 571 657 Other expense 6,988 5,579 ----------- ----------- Income before income taxes 4,141 3,814 Income taxes 1,279 1,184 ----------- ----------- Net income $ 2,862 2,630 ----------- ----------- END OF RELEASE