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
January 20, 2005 (740) 373-3155
PEOPLES BANCORP INC. REPORTS 2004 RESULTS OF OPERATIONS
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MARIETTA, Ohio - Peoples Bancorp Inc. (NASDAQ: PEBO) announced net
income of $2,718,000, or $0.26 per diluted share, for the fourth quarter of 2004
compared to a net loss of $139,000, or $0.01 per diluted share, a year ago. For
the year ended December 31, 2004, net income totaled $18,275,000, or $1.71 per
diluted share, up from $16,254,000, or $1.52 per diluted share, earned in 2003.
Earnings in the fourth quarter of 2004 were reduced by $2,596,000
($1,688,000 after-tax) of charges relating to the previously announced
repositioning of a portion of the investment portfolio; a write down of $128,000
($83,000 after-tax) on real estate values of bank offices consolidated into
other Peoples' banking centers; plus an other-than-temporary impairment charge
of $490,000 ($319,000 after-tax) related to an investment in Fannie Mae ("FNMA")
preferred stock. The net loss in 2003's fourth quarter was the result of balance
sheet restructuring and other balance sheet charges of $7,462,000 ($5,372,000,
after tax).
"In the fourth quarter, we continued to prepare the balance sheet for
the expected increases in interest rates and we incurred increased costs to
comply with the Sarbanes-Oxley requirements. Also, some operations in our branch
network were consolidated to improve our product service and delivery
efficiency," commented Robert Evans, Chairman and CEO. "Consistent with the
greater emphasis on dividends, we continued the dividend growth by 11.6% to
$0.72 in 2004, marking the 39th consecutive year of dividend increases."
Evans continued, "Non-interest revenues are expected to be higher in
2005, due in part to a full year's impact of recent acquisitions that are not
directly impacted by the interest rate environment. Also, our lenders continue
to originate quality loans, which should strengthen future earnings streams."
At the close of business on December 3, 2004, Peoples Bank completed
the acquisition of two full-service banking offices in the Ashland, Kentucky
market from Advantage Bank, a subsidiary of Camco Financial Corporation. In the
acquisition, Peoples acquired approximately $64 million in deposits and $43
million of loans. Concurrent with the acquisition, Peoples consolidated some of
its Ashland, Kentucky area banking offices. Peoples Bank's Flatwoods office and
the acquired office in downtown Ashland were consolidated into nearby Peoples
Bank offices at the close of business on December 3, 2004. Also, the Peoples
Bank Cedar Knoll office ceased operations at the close of business on December
27, 2004, with clients redirected to Peoples Bank's newly acquired office in
Summit, Kentucky. Management expects this acquisition to be accretive to 2005
earnings.
In the fourth quarter of 2004, Peoples repositioned a portion of its
investment portfolio by selling approximately $85 million of fixed-rate
securities, consisting primarily of mortgage-backed securities purchased in a
historic low rate environment, and reinvested the net proceeds in other
investment securities, primarily variable rate mortgage-backed securities. The
securities sold were selected because management wanted to shorten the estimate
life of the portfolio and expected the securities sold to underperform in a
rising rate environment. While this repositioning is expected to have a minimal
impact on short-term yields, the new securities have shorter estimated lives and
duration than the securities sold, which should improve the overall long-term
performance of the investment portfolio as interest rates return to more
historic levels.
Also during the fourth quarter of 2004, Peoples recorded a charge of
$490,000 on an investment in FNMA preferred stock included in Peoples'
available-for-sale investment portfolio. Management does not believe that the
current market value of this instrument reflects the true long-term economic
value of the investment since the market value should improve as this investment
gets closer to its repricing date. Previously, the unrealized loss on this
investment grade preferred stock had been reflected as a reduction of Peoples'
equity and included in accumulated comprehensive income, net of deferred taxes,
a separate component of stockholders' equity. Additionally, the write-down in
value of the investment is not expected to have an impact on Peoples' future
operating earnings or cash flows.
In the fourth quarter of 2004, net interest income totaled $12,734,000,
down 1% compared to $12,885,000 in 2003's fourth quarter. Net interest margin
was 3.29% for the fourth quarter of 2004, compared to 3.34% for the prior
quarter and 3.32% for the fourth quarter of 2003. For the year ended December
31, 2004, net interest income totaled $51,870,000 and net interest margin was
3.39%, versus $53,605,000 and 3.52%, respectively, for the same period in 2003.
"Competition for quality loans and deposits remains intense, especially
as rates continue to rise, which negatively impacts net interest income and
margin," said Jack Conlon, Peoples' Chief Financial Officer. "Our actions over
the last year to position the balance sheet for the expected eventual increase
in rates has produced some benefits, although net interest margin has been
negatively affected in the near term. However, we continue to shift to
longer-term funding to lock in rates and match fund selected long-term three-
and five-year adjustable rate commercial loans, which has offset any improvement
in current asset yields. Our proactive management of Peoples' interest rate risk
position and recent rate risk management actions, such as the investment
portfolio repositioning, should minimize the impact of future rate increases on
earnings by maintaining a slightly asset sensitive risk position."
Non-interest income continues to benefit from recent acquisitions,
particularly the insurance agencies acquired during the second quarter of 2004.
Non-interest income grew 48% in the fourth quarter of 2004, totaling $7.0
million compared to $4.8 million a year ago, due in large part to the $1.8
million of revenues generated by the acquired insurance agencies. For the year
ended December 31, 2004, non-interest income was up 39% to $25.4 million, from
$18.3 million for the same period last year, with $4.7 million due to increased
insurance commissions. A full year's impact of the Kentucky Bancshares
acquisition completed in mid-2003 and additional business owned life insurance
also were contributors to the non-interest revenue growth.
"Acquisitions continue to serve as a means of growing and diversifying
our revenues and decreasing our reliance on margin based revenues," stated Mark
Bradley, Peoples' President and Chief Operating Officer. "The efforts of our
sales associates have also grown other revenue sources, including deposit
account service charges and e-banking revenues."
Deposit account service charges remain Peoples' largest non-interest
income source, totaling $2,414,000 in 2004's fourth quarter versus $2,219,000
for the same period in 2003, a 9% increase. This revenue growth is primarily
attributable to a combination of higher volumes of overdraft and non-sufficient
funds fees and an overall increase in the number of checking accounts, as well
as an increase in the per item amount of certain cost recovery fees. As a result
of Peoples' $20 million BOLI purchase in early 2004, BOLI produced
tax-advantaged income of $483,000 in the fourth quarter of 2004 versus $343,000
a year ago. E-banking revenues, primarily ATM and debit card fees, grew 18% from
the same quarter a year ago.
In the fourth quarter of 2004, non-interest expense was $12.8 million
versus $17.3 million in 2003's fourth quarter. This decline is attributable to
Peoples incurring FHLB (Federal Home Loan Bank) advance prepayment fees of $6.8
million last year as part of a balance sheet restructuring, which more than
offset current year increases primarily attributable to recent acquisitions and
increased professional service costs related to compliance with Sarbanes-Oxley
legislation. Other increased costs in the fourth quarter included salaries and
benefits, occupancy costs and intangible amortization. Compared to the third
quarter of 2004, non-interest expense was up 2% in the fourth quarter, with the
additional professional fees, as part of Peoples compliance with new
Sarbanes-Oxley regulatory requirements, accounting for $325,000 of the increase,
or $0.02 per share after-tax.
"We experienced an increase in operating expenses in the fourth quarter
from acquisitions and compliance with new regulatory reporting requirements,"
commented Bradley. "We continue to monitor costs and adjust our sales
compensation structure as part of our efforts to enhance Peoples' operating
efficiency."
Salaries and benefits, Peoples' largest operating expense, totaled $6.7
million for the fourth quarter of 2004, an increase of 32%, or $1.6 million,
from a year ago. About 60% of the increase was attributable to the associates
added in conjunction with acquisitions during 2004. Compared to the third
quarter of 2004, salaries and benefits were essentially unchanged. Professional
fees were up 43% in the fourth quarter of 2004 compared to a year ago, as
Peoples worked to comply with new reporting requirements mandated by the
Sarbanes-Oxley Act, which apply to all publicly traded companies.
During the fourth quarter, loans grew $65.2 million, to $1.02
billion at December 31, 2004, a result of acquired loans of $43 million and
internally generated loans of $21.9 million (or 9% annualized growth), which
were primarily commercial real estate loans. As part of Peoples' mortgage
banking activities, $106 million of fixed-rate real estate loans previously sold
into the secondary markets due to the associated interest rate risk, are being
serviced at December 31, 2004 compared to $76.1 million at December 31, 2003.
Since year-end 2003, total loans were up $108.1 million, or 12%, at December 31,
2004, with $64.8 million of the growth the result of internal loan originations.
"One of our successes in 2004 was the ability of our lenders to
originate quality loans, which preserves our already strong asset quality,"
stated Bradley. "Economic conditions continue to show some improvement in our
markets and commercial loan demand remains reasonably strong, which should
provide our lenders with opportunities to generate additional loans."
In the fourth quarter of 2004, the provision for loan losses was
$531,000, compared to $915,000 a year ago, and $605,000 in the third quarter of
2004. The lower provision is directionally consistent with Peoples' asset
quality in the loan portfolio during the fourth quarter. Nonperforming loans
comprised 0.64% of total loans at December 31, 2004, compared to 0.53% at
September 30, 2004, and 0.73% at December 31, 2003, while nonperforming assets
comprised 0.43%, 0.30% and 0.41% of total assets for the same periods,
respectively. Nearly all of the increase in nonperforming assets is attributable
to a single restructured loan of $1.1 million and Peoples reclassifying the net
value, totaling $752,000, of the recently closed offices, previously recorded as
bank premises to other real estate owned in anticipation of their eventual sale.
"Our lenders remain dedicated to maintaining asset quality as we work
to grow loans in a disciplined manner," commented Bradley. "While nonperforming
assets were up due to the consolidation of some banking offices and the
renegotiation of a single commercial loan, we do not expect any losses in the
near term. Our evaluation of factors affecting probable loan losses is ongoing,
and we feel our continuing focus on asset quality should result in loan loss
provisions (exclusive of Overdraft Privilege provisions), that are comparable to
recent levels."
Net chargeoffs were down 24% in the fourth quarter of 2004 compared to
a year ago. Net chargeoffs relating to the Overdraft Privilege Program comprised
the largest portion of the 2004 fourth quarter net chargeoffs, totaling $232,000
versus $216,000 a year ago. Real estate loan net chargeoffs were also a
significant portion of total net chargeoffs, comprising $183,000 in the fourth
quarter 2004 versus $72,000 a year ago. At December 31, 2004, the allowance for
loan losses was $14.8 million, or 225.6% of nonperforming loans, compared to
$14.6 million, or 216.1% of nonperforming loans, at year-end 2003.
At December 31, 2004, total deposits were $1.07 billion, up $40.9
million from $1.03 billion a year ago. Excluding the deposits acquired in the
fourth quarter, total deposits were down $23.7 million primarily due to intense
competition for deposits, particularly certificates of deposits and other
high-cost funds, during this period of rising interest rates. Although
interest-bearing deposits declined, Peoples has grown non-interest-bearing
deposits, excluding acquired deposits, $17 million, reflecting management's
focus on growing core deposits and adjusting the overall mix of deposits to
lower cost funds.
"Overall, our results reflect the numerous challenges encountered in
2004," summarized Bradley. "With interest rates continuing to increase,
prospects for loan growth, and continued strong asset quality, we look for
better operating earnings in 2005. The flattening yield curve causes some
concern, so expense control continues to be a major focus in these tougher times
of net interest income growth. Achieving our goals for non-interest income
growth involve increased cross-sales throughout our product lines."
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 50 locations and 33 ATMs in
Ohio, West Virginia and Kentucky. Peoples' financial service units include
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.
Conference Call to Discuss Earnings:
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Peoples will conduct a facilitated conference call to discuss fourth
quarter and 2004 results of operations today at 11:00 a.m. eastern time, with
members of Peoples' executive management participating. Analysts, media and
individual investors are invited to participate in the conference call by
calling (888) 424-5801. A simultaneous Webcast of the conference call audio will
be available online via the home page and/or Investor Relations section of
www.peoplesbancorp.com. Participants are encouraged to call or sign in at least
15 minutes prior to the scheduled conference call time to ensure participation
or download and install the necessary software. A replay of the call will be
available on Peoples' website for 1 year.
Safe Harbor Statement:
- ---------------------
This press release may contain certain forward-looking statements with
respect to Peoples' financial condition, results of operations, plans,
objectives, future performance and business. 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," "will," "would," "should," "could" and
similar expressions are forward-looking statements within the meaning of Section
27A of the Securities Act of 1933, as amended, and Rule 175 promulgated
thereunder, and Section 21E of the Securities Exchange Act of 1934, as amended,
and Rule 3b-6 promulgated thereunder. These forward-looking statements are
subject to risks and uncertainties that may cause actual results to differ
materially. Factors that might cause such a difference include, but are not
limited to: (1) competitive pressures among depository institutions increase
significantly; (2) changes in the interest rate environment which adversely
impact interest margins; (3) prepayment speeds, loan sale volumes, charge-offs
and loan loss provisions are less favorable than expected; (4) general economic
conditions are less favorable than expected; (5) political developments, wars or
other hostilities may disrupt or increase volatility in securities markets or
other economic conditions; (6) legislative or regulatory changes or actions
which adversely affect Peoples' business; (7) changes and trends in the
securities markets; (8) a delayed or incomplete resolution of regulatory issues;
(9) the impact of reputational risk created by these developments on such
matters as business generation and retention, funding and liquidity; (10) the
outcome of regulatory and legal proceedings and (11) other risk factors relating
to the banking industry or Peoples as detailed from time to time in Peoples'
reports filed with the Securities and Exchange Commission ("SEC"). Peoples does
not commit to any obligation to release revisions to these forward-looking
statements or reflect events or circumstances after the date of this release.
Copies of documents filed with the SEC are available free of charge at the
Commission's website at http://www.sec.gov and/or from Peoples' website.
PEOPLES BANCORP INC. (NASDAQ: PEBO)
Financial Highlights (Unaudited)
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Three Months Ended Year Ended
December 31, December 31,
(in $000's, except per share data) 2004 2003 2004 2003
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PER SHARE DATA Net income (loss) per share:
Basic $ 0.26 $ (0.01) $ 1.74 $ 1.56
Diluted $ 0.26 $ (0.01) $ 1.71 $ 1.52
Cash dividends declared per share $ 0.18 $ 0.18 $ 0.72 $ 0.65
Book value per share $ 16.81 $ 16.11 $ 16.81 $ 16.11
Tangible book value per share (a) $ 9.83 $ 11.76 $ 9.83 $ 11.76
Closing stock price at end of period $ 27.43 $ 29.51 $ 27.43 $ 29.51
Dividend payout as a percentage of net income 69.50% NM 41.66% 42.06%
Actual shares outstanding (net of treasury shares) 10,435,102 10,603,792 10,435,102 10,603,792
Weighted average shares outstanding:
Basic 10,317,081 10,614,989 10,529,332 10,433,708
Diluted 10,481,884 10,874,876 10,710,114 10,660,083
PERFORMANCE RATIOS (b)
Return on average equity 6.21% -0.33% 10.60% 9.75%
Return on average assets 0.60% -0.03% 1.04% 0.95%
Non-interest leverage ratio (c) 57.89% 47.38% 55.93% 48.68%
Efficiency ratio (d) 60.33% 55.59% 57.18% 51.06%
Net interest margin (fully tax equivalent) 3.29% 3.32% 3.39% 3.52%
Net loan chargeoffs as a percentage of average loans 0.23% 0.33% 0.25% 0.30%
--------------- --------------- --------------- ---------------
NM = Not meaningful
<FN>
(a) Excludes the balance sheet impact of intangible assets acquired through the
application of purchase accounting for acquisitions.
(b) Ratios for the three months ended December 31, 2004 and 2003 presented on
an annualized basis.
(c) Non-interest income (less securities and asset disposal gains/losses) as a
percentage of non-interest expense (less intangible amortization). The
ratio for year ended December 31, 2004, excludes the recovery of loss on
other real estate owned of $210,000, included in the Other Non-interest
Income. The ratio for the three months and year ended December 31, 2003,
excludes Federal Home Loan Bank prepayment penalties of $6,817,000 and
$6,858,000, respectively, and gain on sale of credit card portfolio of
$1,423,000.
(d) Non-interest expense (less intangible amortization) as a percentage of
fully tax equivalent net interest income plus non-interest income. The
ratio for the three months and year ended December 31, 2003, excludes
Federal Home Loan Bank prepayment penalties of $6,817,000 and $6,858,000,
respectively, and gain on sale of credit card portfolio of $1,423,000.
</FN>
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Three Months Ended Year Ended
December 31, December 31,
(in $000's) 2004 2003 2004 2003
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PROVISION FOR LOAN LOSSES
Provisions for Overdraft Privilege losses $ 186 $ 255 $ 866 $ 781
Other provisions for loan losses $ 345 $ 660 $ 1,680 $ 2,820
--------------- --------------- --------------- ---------------
Total provisions for loan losses $ 531 $ 915 $ 2,546 $ 3,601
NET CHARGEOFFS
Gross chargeoffs $ 866 $ 1,111 $ 3,787 $ 3,786
Recoveries $ 289 $ 348 $ 1,426 $ 1,101
--------------- --------------- --------------- ---------------
Net chargeoffs $ 577 $ 763 $ 2,361 $ 2,685
Overdrafts $ 232 $ 216 $ 822 $ 704
Real estate 183 72 491 383
Consumer 107 174 455 714
Commercial 57 250 474 684
Credit card (2) 51 119 200
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Total net chargeoffs $ 577 $ 763 $ 2,361 $ 2,685
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PEOPLES BANCORP INC. CONSOLIDATED AVERAGE BALANCES
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Three Months Ended Year Ended
December 31, December 31,
(in $000's) 2004 2003 2004 2003
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Average gross loans $ 992,632 $ 920,903 $ 942,761 $ 894,419
Average investment securities 618,977 690,772 640,091 675,685
Average earning assets 1,601,388 1,608,011 1,579,692 1,574,381
Average intangible assets 67,023 46,378 59,619 40,775
Average total assets 1,792,864 1,753,326 1,761,224 1,710,042
Average non-interest-bearing deposits 153,253 132,263 144,564 124,574
Average interest-bearing deposits:
Savings 164,320 178,886 171,705 172,240
Interest-bearing demand deposits 269,634 267,029 262,206 272,800
Time deposits 456,664 462,919 454,793 453,488
---------------- ---------------- ---------------- ----------------
Total average interest-bearing deposits 890,618 908,834 888,704 898,528
Average stockholders' equity $ 174,157 $ 172,049 $ 172,399 $ 166,640
----------------------------------- -----------------------------------
PEOPLES BANCORP INC. CONSOLIDATED STATEMENTS OF INCOME
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Three Months Ended Year Ended
December 31, December 31,
(in $000's) 2004 2003 2004 2003
----------------------------------- -----------------------------------
Interest income $ 22,449 $ 21,836 $ 87,030 $ 91,655
Interest expense 9,715 8,951 35,160 38,050
---------------- ---------------- ---------------- ----------------
Net interest income 12,734 12,885 51,870 53,605
Provision for loan losses 531 915 2,546 3,601
---------------- ---------------- ---------------- ----------------
Net interest income after provision for loan losses 12,203 11,970 49,324 50,004
Net loss on securities transactions (3,070) (1,880) (3,040) (1,905)
Net loss on asset disposals (141) (32) (119) (261)
Gain on sale of credit card portfolio - 1,423 - 1,423
Non-interest income:
Service charges on deposits 2,414 2,219 9,636 8,192
Insurance and investment commissions 2,153 365 6,152 1,465
Fiduciary revenues 897 777 3,471 3,363
Electronic banking revenues 636 538 2,390 2,055
Business owned life insurance 483 343 1,899 1,403
Mortgage banking income 222 385 931 1,352
Other non-interest income 244 131 888 451
---------------- ---------------- ---------------- ----------------
Total non-interest income 7,049 4,758 25,367 18,281
Non-interest expense:
Salaries and benefits 6,678 5,054 24,574 19,636
Occupancy and equipment 1,274 1,228 5,134 4,561
Professional fees 711 496 2,030 1,938
Amortization of intangible assets 657 470 2,219 1,493
Data processing and software 505 561 1,849 1,596
Franchise taxes 372 313 1,458 1,126
Bankcard costs 355 274 1,461 1,160
Marketing 303 198 1,128 1,053
Long-term debt prepayment penalties - 6,817 - 6,858
Other non-interest expense 1,978 1,916 7,345 6,482
---------------- ---------------- ---------------- ----------------
Total non-interest expense 12,833 17,327 47,198 45,903
---------------- ---------------- ---------------- ----------------
Income (loss) before income taxes 3,208 (1,088) 24,334 21,639
Income tax expense (benefit) 490 (949) 6,059 5,385
---------------- ---------------- ---------------- ----------------
Net income (loss) $ 2,718 $ (139) $ 18,275 $ 16,254
=================================== ===================================
Fully tax equivalent net interest income $ 13,135 $ 12,032 $ 53,500 $ 55,267
PEOPLES BANCORP INC. SELECTED FINANCIAL INFORMATION
----------------- ---------------- ---------------
(in $000's, end of period) December 31, September 30, December 31,
2004 2004 2003
----------------- ---------------- ---------------
LOAN PORTFOLIO
Commercial, mortgage $ 450,270 $ 430,513 $ 380,372
Commercial, other 126,473 116,621 131,697
Real estate, construction 35,423 37,847 21,056
Real estate, mortgage 349,965 307,648 301,726
Consumer 60,927 65,235 79,926
Credit card (a) - - 221
----------------- ---------------------------------
Total loans $ 1,023,058 $ 957,864 $ 914,998
ASSET QUALITY
Allowance for loan losses as a percent of total loans 1.44% 1.55% 1.59%
Allowance for loan losses as a percent of
nonperforming loans (b) 225.6% 293.5% 216.1%
Nonperforming loans as a percent of total loans (b) 0.64% 0.53% 0.73%
Nonperforming assets as a percent of total assets 0.43% 0.30% 0.41%
Nonperforming assets as a percent of total loans and other real
estate owned
real estate owned 0.75% 0.56% 0.78%
Nonperforming assets (in $000's, end of period):
Loans 90 days or more past due $ 285 $ 298 $ 188
Renegotiated loans $ 1,128 $ - $ -
Nonaccrual loans $ 5,130 $ 4,747 $ 6,556
Other real estate owned $ 1,163 $ 301 $ 392
----------------- ---------------- ---------------
Total nonperforming assets $ 7,706 $ 5,346 $ 7,136
REGULATORY CAPITAL (c)
Tier 1 risk-based capital 10.82% 11.97% 14.08%
Total risk-based capital ratio (Tier 1 and Tier 2) 12.17% 13.29% 15.43%
Leverage ratio 7.46% 7.85% 8.68%
Tier 1 capital $ 127,616 $ 134,630 $ 147,591
Total capital (Tier 1 and Tier 2) $ 143,515 $ 149,526 $ 161,780
Total risk-weighted assets $ 1,179,342 $ 1,124,683 $ 1,048,295
SUPPLEMENTAL DATA
Trust assets under management $ 645,509 $ 620,686 $ 632,868
Employees (full-time equivalent) 537 547 511
Full service offices 41 42 42
Supermarket offices 4 4 4
ATMs 33 33 32
Announced treasury share plans: (d)
Total shares authorized for plan 625,000 625,000 315,000
Shares purchased 10,813 211,900 61,300
Average price $ 27.71 $ 25.84 $ 27.96
----------------- ---------------- ---------------
<FN>
(a) Balance at December 31, 2003, represents nonqualifying balances not included
in preliminary settlement of the credit card portfolio sale subject to final
settlement.
(b) Nonperforming loans include loans 90 days past due and accruing,
renegotiated loans and nonaccrual loans.
(c) December 31, 2004, data based on preliminary analysis and is subject to
revision.
(d) 2004 data reflects 2004 Stock Repurchase Program of 425,000 shares announced
December 17, 2003 and 200,000 shares announced August 13, 2004. 2003 data
reflects 2003 Stock Repurchase Program of 315,000 shares. Reflects treasury
shares purchased and average price paid for the three-month period ended on
the date indicated. All share amounts have been adjusted for stock
dividends.
</FN>
PEOPLES BANCORP INC. CONSOLIDATED BALANCE SHEETS
------------------ ------------------
(in $000's) December 31, December 31,
2004 2003
------------------ ------------------
ASSETS
Cash and cash equivalents $ 31,449 $ 73,426
Available-for-sale investment securities, at estimated fair value
(amortized cost of $594,457 at December 31, 2004, and $634,801 at
December 31, 2003) 602,364 641,464
Loans held for sale 612 2,847
Loans, net of unearned interest 1,023,058 914,998
Allowance for loan losses (14,760) (14,575)
------------------ ------------------
Net loans 1,008,298 900,423
Bank premises and equipment, net of accumulated depreciation 22,640 22,155
Business owned life insurance 45,253 23,355
Goodwill 60,779 41,407
Other intangible assets 12,022 7,298
Other real estate owned 1,163 392
Other assets 26,189 23,337
------------------ ------------------
TOTAL ASSETS $ 1,810,769 $ 1,736,104
================== ==================
LIABILITIES
Non-interest-bearing deposits $ 152,979 $ 133,709
Interest-bearing deposits 916,442 894,821
------------------ ------------------
Total deposits 1,069,421 1,028,530
Federal funds purchased, securities sold under repurchase agreements,
and other short term borrowings 51,895 108,768
Long-term borrowings 464,864 388,647
Junior subordinated notes held by subsidiary trusts 29,263 29,177
Accrued expenses and other liabilities 19,908 10,102
------------------ ------------------
TOTAL LIABILITIES 1,635,351 1,565,224
STOCKHOLDERS' EQUITY
Common stock, no par value (24,000,000 shares authorized, 10,850,641 shares
issued at December 31, 2004, and
10,704,938 shares issued at December 31, 2003) 162,284 161,005
Accumulated comprehensive income, net of deferred income taxes 4,958 4,255
Retained earnings 18,442 7,781
Treasury stock, at cost (415,539 shares at December 31, 2004,
and 101,146 shares at December 31, 2003) (10,266) (2,161)
------------------ ------------------
TOTAL STOCKHOLDERS' EQUITY 175,418 170,880
------------------ ------------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 1,810,769 $ 1,736,104
================== ==================
END OF RELEASE