PEOPLES BANCORP INC. - P.O. BOX 738 - MARIETTA, OHIO - 45750
www.peoplesbancorp.com
NEWS RELEASE
FOR IMMEDIATE RELEASE Contact: John W. Conlon
- --------------------- Chief Financial Officer
December 14, 2004 (740) 373-3155
PEOPLES BANCORP INC. REPOSITIONS INVESTMENT PORTFOLIO
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MARIETTA, Ohio - Peoples Bancorp Inc. ("Peoples") (NASDAQ: PEBO)
announced today the recent sales of approximately $85 million of fixed rate
securities consisting primarily of mortgage-backed securities as part of a
repositioning of its investment portfolio. The securities sold were purchased
during a period of historically low interest rates and are expected to
underperform in a rising rate environment.
Peoples will reinvest the net proceeds from these sales into other investment
securities, primarily variable rate mortgage-backed securities, with slightly
higher yields in the near term and shorter estimated lives and duration than
those sold. The repositioning should improve the overall performance of the
investment portfolio as interest rates return to more historic levels.
As a result of the repositioning, Peoples will recognize a fourth quarter 2004
pre-tax loss on sale of securities of $2.6 million, or $0.16 per share
after-tax.
"We believe this action better positions the balance sheet for the
continued expected increases in interest rates and should improve our long-term
financial position," said Mark Bradley, Peoples' President and Chief Operating
Officer The average estimated lives of the securities sold was about 6.5 years,
while the average estimated lives of the securities purchased is expected to be
about 4 years. Peoples plans to complete the reinvestment before year-end 2004.
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 51 locations and 34 ATMs in Ohio, West
Virginia and Kentucky. Peoples' financial service units include Peoples Bank,
National Association ("Peoples Bank"); Peoples Financial Advisors (a division of
Peoples Bank) and Peoples Insurance Agency, Inc. Peoples' common shares are
traded on the NASDAQ national market under the symbol "PEBO", and Peoples is a
member of the Russell 3000 index of US publicly traded companies. Learn more
about Peoples at www.peoplesbancorp.com.
Forward-Looking Statements
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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 "should," "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, but not limited to, the
interest rate environment and differences in the expectation of estimated lives
and duration of the securities purchased, the effect of federal and state
banking and tax regulations, the effect of technological changes, the effect of
economic conditions, the impact of competitive products and pricing, and 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, except as may be required by applicable
laws.
END OF RELEASE