Peoples Bancorp Inc. · NASDAQ:PEBO
Peoples Bancorp — Shareholder Meeting (April 2010)
23 slides from Peoples Bancorp's shareholder meeting presentation, Apr 26, 2010
Slide 1: Welcome Shareholders and Guests
Nasdaq: PEBO April 22, 2010 Welcome … Shareholders and Guests ANNUAL MEETING OF SHAREHOLDERS
Slide 2: Discussion items
Discussion items • Peoples Bancorp overview. • Economic and financial review. • Strategies. • Summary.
Slide 3: Disclaimer
Disclaimer Please note and understand that commentary in this presentation may contain projections or other forward-looking statements regarding future events or Peoples Bancorp’s (“Peoples”) future financial performance. These statements are based on management’s current expectations. The statement
Slide 4: Corporate Profile
Corporate Profile • Financial holding company with 47 full-service financial offices in Ohio, West Virginia, and Kentucky. • Financial snapshot as of March 31, 2010: – $2.0 billion in total assets. – $175 million market capitalization. – Average daily trading volume: 30,000 shares. • Provide a broad
Slide 5: Our markets
Our markets • 47 locations and 39 ATMs. • Over 500 associates. • 100,000 client relationships.
Slide 6: The recent economy
The recent economy • The global economy showing signs of improvement but high unemployment levels remain: – Massive increases in government spending. – $1.75 trillion expansion of Federal Reserve balance sheet to stabilize the financial system. • Continued fears of another “shoe to drop”: – Commerci
Slide 7: 2009 Financial Summary
2009 Financial Summary • Like many banks in 2009, Earnings Per Share $1.94 $2.01 PEBO’s earnings were $1.74 impacted by a sluggish economy and a $0.72 distressed real estate $0.22 market. • Higher loan charge-offs 2005 2006 2007 2008 2009 and provision for loan losses. Non-performing Assets to Total
Slide 8: First Quarter 2010 Results
First Quarter 2010 Results • Net income of $0.8 million and diluted EPS of $0.08 • Non-performing assets declined $5 million from year end 2009 to $35.9 million. • Investment impairment charge of $1.0 million ($0.06 per share), which was the remaining CDO investment. • Stable net interest income ($1
Slide 9: A Focus on Net Interest Margin
A Focus on Net Interest Margin Net Interest Income (in 000s) • Able to maintain margin and Net Interest Margin while preparing balance $15,527 $15,430 $15,469 $15,417 $15,441 sheet for rising rates. 3.52 % 3.50% 3.52% 3.45% 3.45 % • Reduction in higher cost borrowings. 1Q2009 2Q2009 3Q2009 4Q2009 1Q
Slide 10: Operating Leverage
Operating Leverage • FDIC expense increased from $360,000 in 2008 to $3,440,000 in 2009 (includes a $900,000 special assessment). • FDIC expense is “fixed” for the next 3 years at approximately $3,000,000 / year. $90.6 $93.9 $83.6 $85.3 $80.8 $58.7 $51.3 $53.5 $51.3 $51.5 59.1% 60.1% 57.5% 57.1% 56.
Slide 11: 2009 Results Versus Peers
2009 Results Versus Peers Peer = 35 Banks $1-$5 Billion in assets (IL, IN, KY, OH, MI, WV) Median REGIONAL Peoples Bancorp PEERS Return on Assets 0.21% -0.04% Return on Equity 1.17% -0.28% Net Interest Margin 3.48% 3.32% Efficiency Ratio 60.14% 65.96% Non-performing Assets/ 2.03% 3.79% Assets Loan L
Slide 12: Maintaining Strong Capital Levels
Maintaining Strong Capital Levels Total Capital Ratio 16.80% • Total capital is $85 million above the 12.90% 13.17% 13.23% 13.19% regulatory well- capitalized minimum. 2005 2006 2007 2008 2009 • Higher capital level: Tangible Common Equity to • protects against Tangible Assets Ratio further economic
Slide 13: 2009 Capital Levels Versus Peers
2009 Capital Levels Versus Peers Peer = 35 Banks $1-$5 Billion in assets (IL, IN, KY, OH, MI, WV) Median REGIONAL Peoples Bancorp PEERS TARP Metrics: Total Capital Ratio 16.80% 13.04% Tangible Equity / Tangible Assets 9.21% 7.78% NON-TARP Metrics: Tier 1 Common Capital Ratio 10.58% 8.06% Tangible Co
Slide 14: Earnings and Dividends: The Past 8 Quarters
Earnings and Dividends: The Past 8 Quarters • In 2009, lowered quarterly dividend to $0.10 due to lower earnings. • “Capital is still king” … therefore dividend is evaluated each quarter. Earnings per Share Dividends per Share 7 .3 $0 $0 8 .2 $0 3 3 3 3 3 3 .2 $0 9 $0 .2 .2 .2 .2 .2 .1 $0 $0 $0 $0 0
Slide 15: Diversified Revenues
Diversified Revenues Net Interest Income Non-Interest Income t Inc om 6-Year CAGR e: 10% 6- n-In Non- te re s $93.9 $90.6 $83.6 $85.3 $77.1 $80.8 $71.6 $ 32. 1 $ 32. 1 $ 30. 4 $ 31. 4 $ 25. 2 $ 28. 5 34% $ 18. 0 35% 25% 33% 35% 36% 37% ($ in millions; $ 61. 8 $ 53. 6 $ 51. 9 $ 52. 3 $ 53. 2 $ 53. 9
Slide 16: PEBO stock price: Last 12 months
PEBO stock price: Last 12 months $16.96
Slide 17: Stock Performance: Total Return
Stock Performance: Total Return 80% 73% 75% 60% 51% 40% 41% 20% 22% 6% 21% 0% -13% -8% -20% -29% -34% -40% -51% -60% 1 Year 3 Year 10 Year Peoples Bancorp SPX 500 Index NASDAQ Bank Index AMEX Financial Index
Slide 18: The national media has not been friendly
• The national media has not been “friendly” to community banks. • In 2009, PEBO launched a new campaign stressing the safety and stability of Peoples Bank.
Slide 19: New Products & Services
New Products & Services • Mobile Banking. • Personal Finance Works. • New, improved credit card affiliation. • New approach to small business banking.
Slide 20: Our Strategies
Our Strategies • Maintain Focus on Long-Term Revenue Growth: • Leverage Relationships with Current Clients: – Work across lines of business to meet all of our customers’ financial needs. – Focus on the small business owner segment. • Continued Evaluation of our Branch Footprint: – Expansion and addi
Slide 21: Executive Management Team
Executive Management Team Years of Experience Peoples In Financial Officer Title Bancorp Services Mark F. Bradley President and CEO 18 18 Edward G. Chief Financial Officer / 2 26 Sloane Treasurer Joseph S. EVP, Chief Credit Officer 26 32 Yazombek Daniel K. McGill EVP, Chief Commercial Lending 1 28 O
Slide 22: Executive summary
Executive summary • Our strategies are built on personalized approach to satisfying our clients’ full- service financial needs. – Banking, Investments, Insurance. • Diversified, revenue stream. • Asset quality showing signs of stabilization. • Efficient structure and operations. • Strong capital pos
Slide 23: Questions?
Questions? Mark F. Bradley President and Chief Executive Officer Edward G. Sloane Chief Financial Officer and Treasurer ANNUAL MEETING OF SHAREHOLDERS April 22, 2010