EXHIBIT 12 ---------- PEOPLES BANCORP INC. ANNUAL REPORT ON FORM 10-K FOR FISCAL YEAR ENDED DECEMBER 31, 1997 COMPUTATION OF RATIOS CASH DIVIDENDS PER SHARE Cash dividends paid/Common shares outstanding at date of declaration BOOK VALUE PER SHARE Total stockholders' equity/Common shares outstanding at year-end RETURN ON AVERAGE ASSETS Net income/Average assets RETURN ON AVERAGE STOCKHOLDERS' EQUITY Net income/Average stockholders' equity NET INTEREST MARGIN Fully-tax equivalent net interest income/Average earning assets NON-INTEREST EXPENSE TO AVERAGE ASSETS Non-interest expense/Average assets EFFICIENCY RATIO (Non-interest expenses less intangible and non-recurring , non-operational items)/ (Fully-tax equivalent net interest income plus non-interest income) AVERAGE LOANS TO AVERAGE DEPOSITS Average gross loans/Average deposits DIVIDEND PAYOUT RATIO Dividends declared/Net income AVERAGE STOCKHOLDERS' EQUITY TO AVERAGE ASSETS Average stockholders' equity/Average assets PRIMARY CAPITAL TO PERIOD END TOTAL ASSETS (Stockholders' equity plus allowance for loan losses less intangible assets)/ (Period end total assets plus allowance for loan losses less intangible assets) TIER 1 CAPITAL RATIO Stockholders' equity less intangible assets less securities mark-to-market capital reserve ("Tier 1 Capital")/ Risk adjusted assets TOTAL CAPITAL RATIO Tier 1 Capital plus allowance for loan losses/Risk adjusted assets TIER 1 LEVERAGE RATIO Tier 1 Capital/Quarterly average assets NET CHARGE-OFFS TO AVERAGE LOANS (Gross chargeoffs less recoveries)/ Average net loans NONPERFORMING LOANS AS A PERCENTAGE OF PERIOD END LOANS (Nonaccrual loans plus loans past due 90 days or greater plus other real estate owned)/Gross loans net of unearned interest ALLOWANCE FOR LOAN LOSSES TO PERIOD END TOTAL LOANS Allowance for loan losses/Gross loans net of unearned interest