Filed by: Peoples Bancorp Inc.
Pursurant to Rule 425 under the Securities Act of 1933
Subject Company: The Lower Salem Commercial Bank
(Registration No. 333-81251)
NEWS RELEASE
FOR IMMEDIATE RELEASE Contact: Jack Conlon
January 22, 2001 Chief Financial Officer
(740) 373-3155
PEOPLES BANCORP ANNOUNCES 27th CONSECUTIVE
YEAR OF INCREASED EARNINGS
------------------------------------------------------
Earnings per share up 11% to $1.69
MARIETTA, Ohio - Peoples Bancorp Inc. ("Peoples", Nasdaq: PEBO)
announced its 27th consecutive year of increased earnings. Driven by net
interest income growth and non-interest revenue enhancements, Peoples achieved
record profits in 2000.
Diluted earnings per share reached $1.69 in 2000 compared to $1.53 in
1999, an increase of $0.16 (or 10.5%). Net income in 2000 totaled $11,126,000,
up $408,000 (or 3.8%) over the previous year. In the fourth quarter of 2000,
diluted earnings per share totaled $0.41 on net income of $2,682,000, compared
to earnings per share of $0.41 on net income of $2,781,000 in the fourth quarter
of 1999. For the year ended December 31, 2000, return on average equity ("ROE")
was 14.92% in 2000 compared to 13.27% in 1999. In the fourth quarter of 2000,
ROE totaled 13.62%, compared to 15.02% in the fourth quarter of 1999.
Cash basis earnings increased to $1.93 per diluted share in 2000, up
$0.14 (or 7.8%) compared to 1999. In the fourth quarter of 1999, cash basis
earnings were $0.47 per share compared to $0.48 in the final quarter of 1999.
Cash basis return on average equity was 22.90% for the year ended December 31,
2000 and 20.34% for the fourth quarter of 2000, compared to 20.96% and 24.10%
for the same periods in 1999. Cash basis earnings exclude the effects of
intangible assets and related amortization expenses.
"We are pleased to report another year of consistent earnings growth,"
commented Robert E. Evans, President and CEO. "Our earnings growth slowed in the
latter part of 2000 due to continued net interest margin compression from
competitive pressures and short-term borrowing rates, as well as increases in
fourth quarter operating expenses."
Evans continued, "Despite these challenges, we attained our goals of
double-digit earnings growth and enhancements of return on shareholders' equity.
Loan balances and non-interest revenues, particularly insurance commissions,
continued to show strong growth trends as we expand our needs-based sales
approach in the communities we serve."
In 2000, Peoples continued its "Connections" sales process to enhance
client service through integrated, relationship-based selling. The Connections
process remains the focal point of recent marketing initiatives to increase core
deposits and enhance Peoples' product and service visibility in its primary
markets. Because of the Connections process and client-favorable pricing of
certain deposits, Peoples grew deposits $29 million in 2000. Deposit account
service charge income increased $513,000 (or 18.8%) in 2000 to $3,243,000 for
the year and $126,000 (or 17.1%) for the fourth quarter of 2000 to $863,000.
Most of the increases in service charge fees are attributable to volume
increases of standard fees such as overdraft and non-sufficient fund fees, as
well as growth in Peoples' deposit service income generated from business
customers.
Non-interest income totaled $9,027,000 in 2000, an increase of
$1,427,000 (or 18.8%) over 1999. The increase in non-interest income is the
result of Peoples' continued commitment to diversify and grow revenues through
its various lines of business, especially those not dependent on interest rates.
In the fourth quarter of 2000, non-interest income totaled $2,339,000, an
increase of $294,000 (or 14.4%) compared to the same period a year earlier. A
majority of the revenue growth resulted from increases in life insurance and
annuity sales. Service charges on deposits remain the largest source of
non-interest revenues, reaching $3,243,000 in 2000, up $513,000 (or 18.8%)
compared to 1999.
Insurance and investment commission revenues grew significantly in 2000
as Peoples Insurance client service teams continue to expand the number of
clients served. Insurance and investment commission revenues soared to
$1,283,000 for 2000, an increase of $787,000 (or 159%) compared to 1999. For the
fourth quarter of 2000, insurance and investment commissions totaled $338,000
compared to $118,000 a year ago, up $220,000 (or 186%). The growth of investment
and insurance commissions was partially offset by decreased fiduciary revenues,
which are based primarily on market valuations that decreased significantly in
2000. On a year-to-date basis, trust revenues were down $26,000 (or 1.0%) to
$2,608,000 in 2000.
Peoples' other major source of non-interest income, electronic banking
revenues, increased $42,000 (or 14.4%) to $334,000 in the fourth quarter of
2000. In 2000, electronic banking revenues totaled $1,220,000, up $187,000 from
1999's $1,033,000. The increased electronic banking income is due primarily to
expanded use of debit cards by Peoples' clients. Management believes the growth
in non-interest income experienced in 2000 reflects the success of Peoples'
client service teams to serve customer needs professionally and quickly and
expects continued non-interest income growth in 2001.
While one of Peoples' primary focuses is non-interest revenue growth,
net interest income remains a significant source of income. On a fully tax
equivalent basis, net interest income increased $1,977,000 (or 5.0%) to
$41,326,000. In the fourth quarter of 2000, FTE net interest income totaled
$10,231,000, up $147,000 (or 1.5%) over the same period a year ago. Increased
net interest income can be attributed to balance sheet growth in 2000. Net
interest margin decreased for the three months and year ended December 31, 2000,
due to interest rate compression between loan pricing and funding source costs.
Rising interest rates on short-term funding sources also affected net interest
margin in 2000. Peoples' reliance on short-term funding has increased due to
recent loan growth. Peoples' management anticipates that net interest margin
could continue to be pressured in the first quarter of 2001, although recent
interest rate cuts are expected to enhance net interest margin later in 2001.
"Fierce competition for loans and deposits continues in our markets,
and in the financial services industry in general," commented Jack Conlon, Chief
Financial Officer. "While we anticipate some net interest income pickup from the
recent decrease in the fed funds rate, our results in the near short-term will
probably not reflect significant interest rate reductions from the majority of
our funding sources. We have initiated steps in our pricing methodologies to
help reduce our interest costs, specifically on CD's and IRA's."
Loan growth remained steady during the fourth quarter, increasing $12.6
million (or 1.7%) from September 30, 2000 to $737.0 million at year-end 2000.
Since year-end 1999, total loans increased $77.1 million (or 11.7%). Most of
Peoples' loan growth has occurred in its mid-Ohio Valley markets and contiguous
areas, as well as central Ohio markets in Fairfield and Licking Counties. Volume
increases occurred in commercial loans and real estate loans, including home
equity loans, which continue to be a popular loan product among many Peoples'
clients.
Nonperforming loans increased to 0.45% of total assets at year-end 2000
compared to 0.31% at September 30, 2000, due primarily to approximately $2
million of commercial loans being placed on nonaccrual status, which decreased
interest income approximately $85,000 in the fourth quarter of 2000. Management
has taken aggressive steps to deal with the nonperforming loans.
As a result of the increased loan volume and less favorable loss
experience, and general economic slowdowns in Peoples' markets and contiguous
areas, the provision for loan losses increased $153,000 (or 34.2%) and $444,000
(or 23.6%) for the three months and year ended December 31, 2000, when compared
to the same periods last year. At December 31, 2000, the allowance for loan
losses stood at $10.9 million or 1.48% of total loans, up $666,000 since
year-end 1999 when the allowance for loan losses was 1.56% of total loans.
Net chargeoffs increased sharply in the fourth quarter of 2000,
totaling $876,000 compared to $575,000 in the fourth quarter of 1999, an
increase of $301,000 (or 52.3%). Net chargeoffs in 2000 totaled $1,656,000, up
$533,000 (or 47.5%) over 1999. Commercial loan net chargeoffs comprised $702,000
of total net chargeoffs in 2000, and accounted for the majority of net
chargeoffs in the fourth quarter of 2000. In 1999, net commercial loan
chargeoffs totaled $262,000.
"We believe our asset quality continues to be above peer group levels
and reflects the overall quality of the loan portfolio", Conlon said. "We still
expect the loan loss provision to increase in 2001 due to a combination of
continuing loan growth, trends in losses and delinquencies, and the recent
economic slowdown affecting the Midwest and nonperforming loans in our
portfolio."
In 2000, Peoples made various investments to make financial services
more convenient and flexible for clients, which resulted in increased
non-interest expense. Non-interest expense totaled $31,062,000 for the year
ended December 31, 2000, an increase of $2,889,000 (or 10.3%) compared to the
previous year. Salaries and benefits expense, Peoples' largest non-interest
expense, increased $1,679,000 (or 14.2%) to $13,503,000 in 2000. The increase is
due to commissions paid to insurance and investment associates, wage increases
necessary to retain key personnel in the competitive labor market and
corresponding increases in benefits, as well as modest increases in the number
of Peoples' customer service associates. Occupancy and equipment expenses were
$3,900,000, up $274,000 (or 7.6%) from 1999's total of $3,626,000, due primarily
to investments designed to enhance the ability to serve client needs and
delivery channels.
"We implemented several strategic initiatives that increased current
operating expenses," said Conlon. "In early 2000, we merged our three banking
subsidiaries into a single national charter, which has enhanced our ability to
meet all the financial needs of our clients. The internal merger caused
increased expense, particularly professional fees, regulatory costs, and other
items. We believe the future benefits are worth the effort and cost."
Management believes current investments in and expansion of client
service efforts helps Peoples accomplish its goal of improving convenience,
flexibility, and speed for clients. The increased level of non-interest expense
is reflected in Peoples' efficiency ratio. For the fourth quarter of 2000, the
efficiency ratio was 58.54% compared to 55.62% a year ago, while on a
year-to-date basis, was 57.12% in 2000 versus 53.94% in 1999. The combination of
compressed net interest margins and increased levels of non-interest expense
have negatively impacted Peoples' efficiency ratio.
Conlon stated, "We also experienced increased expense related to
professional services, sales education and orientation, and other expenses that
should enhance future performance. Our plan is to continue investing today in
processes that enhance our associates' ability to solve client needs and improve
financial results."
Peoples has implemented tax reduction strategies, including investing
in low income housing and historic tax credits, in an effort to reduce the tax
burden and lower the effective tax rate reflected in 2000 and going forward.
Peoples' effective tax rate was 29.7% in 2000 compared to 31.0% in 1999. For the
fourth quarter of 2000, the effective tax rate was 28.3% compared to 28.5% for
the same period in 1999.
During 2000, Peoples repurchased approximately 62% of the 165,000
shares authorized under the 2000 Stock Repurchase Program, which expired on
December 31, 2000. Recently Peoples announced the authorization to repurchase 2%
of Peoples' outstanding common shares (or 125,000 common shares) from time to
time in open market or privately negotiated transactions under the 2001 Stock
Repurchase Program. The timing of the purchases and the actual number of common
shares purchased will depend on market conditions and other business factors.
The 2001 Stock Repurchase Program will expire December 31, 2001.
Peoples will conduct a conference call to discuss 2000 results of
operations on January 24, 2001, at 3:00 p.m. local time. The conference call is
open to the public and management asks that questions be limited to investment
analysts and interested members of the media. To participate in the call, please
dial 1-800-394-0105 approximately 10 minutes before the scheduled start of the
conference call. The passcode for the call is 36190 followed by the pound sign.
Members of Peoples' executive management will participate in the conference
call. Brief opening remarks will be followed by a question and answer period. A
transcript of the discussion will be placed on www.peoplesbancorp.com, click on
"Investor Relations", then "Conference Call Transcripts".
Peoples Bancorp Inc. is a diversified financial services company with
$1.1 billion in assets. Peoples' lead subsidiary is Peoples Bank, National
Association ("Peoples Bank"), which offers complete banking products and
services through 39 financial service locations and 26 ATM's in Ohio, West
Virginia, and Kentucky. Peoples Bank also makes available other financial
services through 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
Insurance also provides life, property and casualty insurance products and
services through Peoples Insurance Agency, Inc. Peoples' common shares are
traded through the Nasdaq National Market under the symbol PEBO. Learn more
about Peoples or enroll in Peoples OnLine Connection, Peoples Bank's Internet
banking product, at www.peoplesbancorp.com.
In October 2000, Peoples and The Lower Salem Commercial Bank ("Lower
Salem") of Lower Salem, Ohio, jointly announced that Lower Salem entered into a
definitive Agreement and Plan of Acquisition and Merger (as amended, the
"Agreement") with Peoples providing for the acquisition by Peoples of Lower
Salem through the merger of Lower Salem into Peoples Bank (the "Merger
Transaction"). Peoples will issue a combination of cash and Peoples common
shares as consideration for all of the issued and outstanding shares of Lower
Salem common stock, with the expected aggregate value of the Merger Transaction
not to exceed approximately $2.4 million. In exchange for their Lower Salem
shares, the Agreement provides Lower Salem shareholders with the opportunity to
elect to receive cash, Peoples common shares, or a combination of both, subject
to certain terms dependent upon overall election results. The Merger Transaction
is also contingent upon regulatory approval, as well as adoption of the
Agreement by the shareholders of Lower Salem, with a special meeting of the
Lower Salem shareholders to vote on the adoption scheduled on February 13, 2001.
Peoples' management projects the target date for completion of the Merger
Transaction to be February 23, 2001. After the merger, Lower Salem will operate
as a full-service banking office of Peoples Bank. At December 31, 2000, Lower
Salem had total assets of $23 million, total loans of $18 million, and total
deposits of $18 million.
Additional information and where to find it:
- --------------------------------------------
Peoples has filed a Registration Statement on SEC Form S-4 and a proxy
statement/prospectus and will file other relevant documents with the SEC
concerning the Merger Transaction involving Peoples, Peoples Bank, and Lower
Salem. Lower Salem has mailed the proxy statement/prospectus to Lower Salem
shareholders. Investors and shareholders are urged to read the Registration
Statement and the proxy statement/prospectus carefully as well as any other
relevant documents filed with the SEC because they will contain important
information. The Registration Statement and the proxy statement/prospectus
contain important information about Peoples, Peoples Bank, Lower Salem and the
Merger Transaction, the persons soliciting proxies relating to the Merger
Transaction and their interests in the Merger Transaction, and related matters.
Investors and shareholders can obtain free copies of the proxy
statement/prospectus and other documents filed by Peoples through the SEC's
website at www.sec.gov. In addition, copies of the proxy statement/prospectus
and other documents filed by Peoples with the SEC may be obtained free of charge
by requesting them in writing from Peoples Bancorp Inc., 138 Putnam Street, P.O.
Box 738, Marietta, Ohio 45750-0738, Attention: Charles R. Hunsaker, or by
telephone at (740) 374-6109.
In addition to the Registration Statement and the proxy
statement/prospectus, Peoples files annual, quarterly and special reports, proxy
statements and other information with the SEC. Interested parties may read and
copy any reports, statements or other information filed by Peoples at the SEC
Public Reference Room at 450 Fifth Street, N.W., Washington, DC 20549 or at any
of the SEC's other public reference rooms in New York, New York and Chicago,
Illinois. Please call the SEC at 1-800-SEC-0330 for further information on the
operation of the public reference rooms. Peoples' filings with the SEC are also
available to the public from commercial document-retrieval services and at the
website maintained by the SEC at www.sec.gov.
Safe Harbor Statement:
- ----------------------
Except for the historical and present factual information contained in
this press release, the matters discussed in this press release, and other
statements identified by words such as "expects," "believes," "plans," and
similar expressions are forward-looking statements within the meaning of the
"safe harbor" provisions of the Private Securities Litigation Reform Act of
1995. These forward-looking statements are subject to risks and uncertainties
that may cause actual results to differ materially, including: (1) the risk that
regulatory approvals will not be obtained or that the shareholders of Lower
Salem will not adopt the merger agreement; (2) the risk that income, interest
and non-interest, following the merger of Lower Salem into Peoples Bank is lower
than expected; (3) the risk that the costs of providing compensation and
benefits to Peoples' employees increase; (4) the risk that competition increases
in the banking industry or in Peoples' markets; (5) the risk that costs or
difficulties related to the integration of Lower Salem's business will be
greater than expected; (6) the risk that there are adverse changes in general
economic conditions or in competitive forces; (7) the risk that technological
changes are more difficult or expensive to implement than anticipated; (8) the
risk that there are adverse changes in the securities markets; (9) the risk that
Peoples suffers the loss of key personnel; (10) the risk that there are adverse
changes in the interest rate environment; (11) the risk that federal and state
banking and state insurance regulations, as well as federal and state tax
regulations, are changed in a manner adversely affecting Peoples' business; and
(12) other risk factors relating to the banking industry or Peoples as detailed
from time to time in Peoples' reports filed with the SEC. 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.
PEOPLES BANCORP INC. (Nasdaq: PEBO)
Financial Highlights (Unaudited)
-------------------------------- --------------------------------
Three Months Ended Year Ended
(in $000's, except share data) December 31, December 31,
2000 1999 2000 1999
-------------------------------- --------------------------------
PER SHARE DATA Net income per share (a):
Basic $ 0.41 $ 0.42 $ 1.71 $ 1.57
Diluted $ 0.41 $ 0.41 $ 1.69 $ 1.53
Cash basis earnings - diluted (b) $ 0.47 $ 0.48 $ 1.93 $ 1.79
Dividends declared per share $ 0.14 $ 0.13 $ 0.56 $ 0.50
Book value per share $ 12.81 $ 11.06 $ 12.81 $ 11.06
Tangible book value per share (b) $ 10.06 $ 8.00 $ 10.06 $ 8.00
Dividend payout as a percentage of net income 34.08% 30.42% 33.06% 31.78%
Actual shares outstanding (net of treasury shares) (a) 6,489,671 6,587,732 6,489,671 6,587,732
Weighted average shares outstanding:
Basic 6,498,168 6,665,949 6,523,808 6,846,071
Diluted 6,553,007 6,824,486 6,600,160 7,023,921
PERFORMANCE RATIOS
Return on average equity 13.62% 15.02% 14.92% 13.27%
Cash basis return on average equity (b) 20.34% 24.10% 22.90% 20.96%
Return on average assets 0.96% 1.05% 1.02% 1.09%
Cash basis return on average assets (b) 1.12% 1.25% 1.19% 1.30%
Efficiency ratio (c) 58.54% 55.62% 57.12% 53.94%
Net interest margin (fully tax equivalent) 3.91% 4.16% 4.08% 4.35%
Net loan chargeoffs as a percentage of average loans 0.12% 0.09% 0.24% 0.19%
NET CHARGEOFFS
Gross chargeoffs $ 998 $ 670 $ 2,061 $ 1,518
Recoveries $ 122 $ 95 $ 405 $ 395
-------------- -------------- --------------- --------------
Net chargeoffs $ 876 $ 575 $ 1,656 $ 1,123
-------------- -------------- --------------- --------------
<FN>
(a) Adjusted for stock dividends.
(b) Excludes after-tax impact of intangible amortization expense and/or balance
sheet impact of intangible assets acquired through use of purchase
accounting for acquisitions.
(c) Non-interest expense (less intangible amortization and non-direct
operational expenses) as a percentage of fully tax equivalent net interest
income plus non-interest income. All non-recurring items are removed from
the calculation.
</FN>
PEOPLES BANCORP INC. CONSOLIDATED STATEMENTS OF INCOME
-------------------------------- -------------------------------
Three Months Ended Year Ended
(in $000's) December 31, December 31,
2000 1999 2000 1999
-------------- ------------- ------------- --------------
Interest income $ 22,294 $ 19,635 $ 85,129 $ 72,346
Interest expense 12,328 9,805 44,839 34,258
-------------- ------------- ------------- --------------
Net interest income 9,966 9,830 40,290 38,088
Provision for loan losses 600 447 2,322 1,878
-------------- ------------- ------------- --------------
Net interest income after provision for loan losses 9,366 9,383 37,968 36,210
Net gain (loss) on securities transactions -- 10 10 (104)
Net (loss) gain on asset disposals -- -- (109) 9
Non-interest income:
Service charges on deposits 863 737 3,243 2,730
Trust revenues 634 674 2,608 2,634
Insurance commissions 338 118 1,283 496
Electronic banking revenues 334 292 1,220 1,033
Other non-interest income 170 224 673 707
-------------- ------------- ------------- -------------
Total non-interest income 2,339 2,045 9,027 7,600
Non-interest expense:
Salaries and benefits 3,516 3,062 13,503 11,824
Occupancy and equipment 943 929 3,900 3,626
Trust preferred 662 660 2,623 1,840
Amortization of intangibles 571 669 2,284 2,639
Other non-interest expense 2,273 2,228 8,752 8,244
------------- ------------- ------------- -------------
Total non-interest expense 7,965 7,548 31,062 28,173
------------- ------------- ------------- -------------
Income before income taxes 3,740 3,890 15,834 15,542
Income taxes 1,058 1,109 4,708 4,824
------------- ------------- ------------- -------------
Net income $ 2,682 $ 2,781 $ 11,126 $ 10,718
------------- ------------- ------------- -------------
Fully tax equivalent net interest income $ 10,231 $ 10,084 $ 41,326 $ 39,349
PEOPLES BANCORP INC. SELECTED FINANCIAL INFORMATION
---------------------------------- ---------------------------------
Three Months Ended Year Ended
(in $000's) December 31, December 31,
2000 1999 2000 1999
---------------------------------- ---------------------------------
CONSOLIDATED AVERAGE BALANCES
Average gross loans $ 731,369 $ 642,258 $ 698,144 $ 603,675
Average earning assets 1,048,659 967,195 1,013,697 904,747
Average total assets 1,122,327 1,058,459 1,090,540 985,243
Average non-interest bearing deposits 81,602 82,532 81,192 78,759
Average interest bearing deposits:
Savings 76,368 90,331 83,246 95,606
Interest-bearing demand deposits 252,982 217,242 234,311 213,342
Time deposits 342,911 334,570 341,024 321,460
--------------- --------------- --------------- ---------------
Total average interest bearing deposits 672,261 642,144 658,578 630,408
Average stockholders' equity $ 78,773 $ 74,056 $ 74,591 $ 80,780
--------------- --------------- --------------- ---------------
PEOPLES BANCORP INC. SELECTED FINANCIAL INFORMATION
----------------- ----------------- -----------------
December 31, September 30, December 31,
2000 2000 1999
----------------- ----------------- -----------------
LOAN PORTFOLIO (in $000's, end of period)
Commercial, financial, and agricultural $ 310,558 $ 290,308 $ 272,219
Real estate, construction 20,267 27,344 14,067
Real estate, mortgage 283,323 280,206 252,427
Consumer 122,817 126,470 121,120
--------------------------------------------------------
Total loans $ 736,965 $ 724,328 $ 659,833
ASSET QUALITY
Allowance for loan losses as a percent of total loans 1.48% 1.55% 1.56%
Allowance for loan losses as a percent of
nonperforming loans (a) 212.6% 320.1% 487.6%
Nonperforming loans as a percent of total loans (a) 0.70% 0.48% 0.32%
Nonperforming assets as a percent of total assets (b) 0.46% 0.34% 0.21%
Nonperforming assets as a percent of total loans and
other real estate owned
real estate owned (b) 0.71% 0.52% 0.35%
Nonperforming assets (in $000's, end of period):
Loans 90 days or more past due $ 344 $ 610 $ 249
Renegotiated loans $ 518 $ 945 $ 747
Nonaccrual loans $ 4,280 $ 1,946 $ 1,109
Other real estate owned $ 86 $ 283 $ 207
----------------- ----------------- -----------------
Total nonperforming assets $ 5,228 $ 3,784 $ 2,312
REGUALTORY CAPITAL (in $000's, end of period)
Tier 1 risk-based capital 12.83% 12.58% 12.57%
Total risk-based capital ratio (Tier 1 and Tier 2) 14.21% 14.03% 14.30%
Leverage ratio 9.62% 8.54% 8.29%
Tier 1 capital $ 97,056 $ 94,247 $ 87,216
Total capital (Tier 1 and Tier 2) $ 107,428 $ 105,097 $ 99,213
Total risk-weighted assets $ 756,195 $ 749,331 $ 693,688
SUPPLEMENTAL DATA (in $000's, end of period)
Trust assets under management $ 498,563 $ 508,396 $ 560,229
Employees (full-time equivalent) 388 383 385
Full service offices 32 32 31
Supermarket offices 4 4 3
ATMs 25 25 24
Announced treasury share plans: (c)
Total shares in plan 165,000 165,000 346,500
Shares purchased (d) 8,995 16,670 89,977
Average price (d) $ 13.78 $ 14.75 $ 23.46
----------------- ----------------- -----------------
<FN>
(a) Nonperforming loans include loans 90 days past due and accruing,
renegotiated loans, and nonaccrual loans. (b) Nonperforming assets include
nonperforming loans, and other real estate owned. (c) 1999 data reflects 1999
Stock Repurchase Program of 346,5000 shares (or 5% of outstanding shares); 2000
data reflects 2000 Stock Repurchase Program of 165,000 shares (or 2.5% of
outstanding shares). All share amounts adjusted for stock dividends. (d)
Reflects treasury shares purchased and average price paid for the three month
period ended on the date indicated.
</FN>
PEOPLES BANCORP INC. CONSOLIDATED BALANCE SHEETS
------------------ ------------------
December 31, December 31,
(in $000's) 2000 1999
------------------ ------------------
ASSETS
Cash and cash equivalents $ 28,449 $ 43,751
Available-for-sale investment securities, at estimated fair value (amortized
cost of $335,111 and $340,082 at December 31, 2000 and
December 31, 1999, respectively) 330,521 328,306
Loans, net of unearned interest 736,965 659,833
Allowance for loan losses (10,930) (10,264)
----------------- -----------------
Net loans 726,035 649,569
Bank premises and equipment, net of accumulated depreciation 15,565 15,321
Goodwill 15,702 17,428
Other intangibles 2,146 2,726
Other real estate owned 86 207
Other assets 17,330 18,142
----------------- -----------------
TOTAL ASSETS $ 1,135,834 $ 1,075,450
----------------- -----------------
LIABILITIES
Non-interest bearing deposits $ 84,974 $ 83,267
Interest bearing deposits 672,647 644,940
----------------- ----------------
Total deposits 757,621 728,207
Federal funds purchased, securities sold under repurchase agreements,
and other short term borrowings 119,915 87,439
Long-term borrowings 138,511 150,338
Accrued expenses and other liabilities 7,572 7,606
----------------- ----------------
TOTAL LIABILITIES 1,023,619 973,590
Guaranteed preferred beneficial interests in junior subordinated debentures 29,021 28,986
STOCKHOLDERS' EQUITY
Common stock, no par value (12,000,000 shares authorized, 6,679,028 shares
issued at December 31, 2000, and
6,387,509 shares issued at December 31, 1999) 66,364 65,043
Accumulated comprehensive income, net of deferred income taxes (2,983) (7,654)
Retained earnings 23,381 26,241
Treasury stock, at cost (189,357 shares at December 31, 2000
and 398,662 shares at December 31, 1999) (3,568) (10,756)
----------------- ------------------
TOTAL STOCKHOLDERS' EQUITY 83,194 72,874
----------------- ------------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 1,135,834 $ 1,075,450
----------------- ------------------
END OF RELEASE