EXHIBIT 99
NEWS RELEASE
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FOR IMMEDIATE RELEASE Contact: Mark F. Bradley
- --------------------- Peoples Bank
December 31, 2003 President and Chief Operating Officer
(740) 373-3155
PEOPLES BANCORP TO ENHANCE CREDIT CARD OFFERINGS
THROUGH JOINT MARKETING AGREEMENT
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Peoples Bancorp to sell current credit card portfolio;
generate over $1 million net gain
MARIETTA, Ohio - Peoples Bancorp Inc. (Nasdaq: PEBO) today announced
its signing of a joint marketing agreement with InfiCorp Holdings, Inc. and
Peoples Bank, National Association ("Peoples Bank") to serve the credit card
needs of Peoples Bancorp's customers on a going forward basis and purchase
Peoples Bank's existing credit card portfolio.
"We have not been able to grow our credit card portfolio in recent
years," said Mark F. Bradley, Peoples Bank's President and Chief Operating
Officer. "Our customers have asked us for enhancements such as rewards programs,
lower interest rates, and more. We believe that InfiCorp's Bankcard Alliance
Program will provide our customers with a better product, and when combined with
the personal touch and customer service provided by Peoples' associates, our
customers will benefit from an enhanced credit card offering."
At November 30, Peoples Bank's credit card balances totaled
approximately $6.4 million. As part of the joint marketing agreement, Peoples
Bank has agreed to sell its credit card receivables to InfiCorp. Preliminary
settlement of the sale is expected to result in a fourth quarter pre-tax gain,
net of nonrecurring expenses, of over $1 million, or up to $0.08 in after-tax
earnings per share for Peoples Bancorp.
"The intense competition for credit card business makes it tougher for
companies our size to be successful under our current model," said Bradley.
"Through InfiCorp's Bankcard Alliance Program, we will continue to serve
customers' credit card needs and provide enhanced product features. This
alliance is consistent with our strategy to access, when appropriate, other
financial service providers for insurance, investment or lending needs. The
joint marketing agreement with InfiCorp gives us the chance to further penetrate
our customer base through proactive marketing efforts."
The final settlement/conversion of Peoples Bank's credit card portfolio
to InfiCorp is expected to be completed in the second quarter of 2004. Peoples
Bank will continue to serve the credit card needs of its customers through the
transition period. All credit cards issued will continue to be marketed under
Peoples Bank's name and logo.
Bradley continued, "Our responsibility is to deliver competitively
priced financial products that are mutually beneficial to both shareholders and
customers. This alliance will allow us to continue to make available a full
range of financial products to our customers, re-employ some of our assets, and
maintain an ongoing net revenue stream from credit card sales activity."
Further information regarding the financial impact of the joint
marketing agreement will be provided in Peoples' 2003 earnings release on
January 20, 2004 and discussed during Peoples' quarterly conference call on
January 21, 2004. The conference call/webcast will begin at 4:00 pm eastern time
and will be accessible via peoplesbancorp.com under the "Investor Relations"
section. The phone number for call-in listeners will be published in Peoples'
2003 earnings statement.
Peoples Bancorp Inc., a diversified financial products and services
company with $1.8 billion in assets, makes available a complete line of banking,
investment, insurance, and trust solutions through Peoples Bank's 49 sales
offices and 32 ATMs in Ohio, West Virginia, and Kentucky. Peoples' common shares
are traded on the NASDAQ national market under the symbol "PEBO." Peoples
Bancorp is a member of the Russell 3000 index of US publicly traded companies.
Learn more about Peoples at www.peoplesbancorp.com.
END OF RELEASE