Peoples Bancorp Inc. · NASDAQ:PEBO
Peoples Bancorp — Investor Presentation (April 2014)
29 slides from Peoples Bancorp's investor presentation, Apr 28, 2014
Slide 1: Investor Presentation 1st Quarter 2014
V’ Peoples Nasdaq: PEBO Investor Presentation 1% Quarter 2014 Harbor Statement ‘ay Statements in this presentation which are not historical are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934
Slide 2: Additional Information
Additional Infonnation ‘ay This presentation does not constitute an offer to sell, or the solicitation of an offer to buy, securities of Peoples Bancorp Inc. (“Peoples”). Peoples has filed, or will file, registration statements on Form S-4 and other documents regarding the proposed merger transactio
Slide 3: Corporate Profile and Key Accomplishments
Corporate Profile * Financial holding company headquartered in Marietta, Ohio, — Provide a broad range of banking, insurance, and investment services * Current snapshot — Over 160,000 client relationships & 90,000 households — Assets: $2.5 billion — Loans: $1.6 billion — Deposits: $2.0 billion — Mar
Slide 4: Current Outlook
Current Outlook ‘ay * Committed to generating positive operating leverage each year — Over 10% total revenue growth expected for 2014 — Key drivers of revenue growth include higher loan balances and sales production — Expense growth in 2014 due to recent strategic investments — 2014 expense growth t
Slide 5: Total Return Performance
YTD 1-Year 3-Year 5-Year 0% -2% BPEBO @ Peer Group @ NASDAQ Banks @SPxX500 Total Return includes impact of dividends Peers include: BKYF,CCNE, CHCO, CNND, CTBI, FBMI, FDEF, FISI, FMNB, FRME, GABC, HBNC, ISBA,LKFN, LNBB, MSFG, SRCE, STBA, SYBT, THFF, TMP. 7E ~7 Data as of April23, 2014 Peoples oO Ret
Slide 6: Executive Management
Executive Managementaieanl © Years in Banking PEBO}| Total Chuck W. Sulerzyski + Diverse financial services experience President and CEO + Progressive exeaitive leadership 8 38 Edward G. Sloane + Progressive finance and accounting leadership EVP, CFO and Treasurer + Extensive experience with ALM, M&
Slide 7: Growing the Company
Growing the Company Ohio Commerce Bank Single office in Beachwood Total assets = $123 million North Akron Savings Bank Four offices in Summit County Total assets = $148 million eet — August 2014 Ohio Henitage Bancorp Six offices headquartered in Coshocton Total assets = $252 million M Jackson Insura
Slide 8: Midwest Bancshares Transaction
Midwest Bancshares Itansaciom ‘ay Transaction Summary Transaction rationale: — Consistently solid franchise $12.6 million or Riles a ; Deal Value: - in existing footprint in SE Ohio 105% of TBV at 12/31/2013 — Leveraging 2013 surance acquisitions = — Good deposit market share Consideration: ae oe st
Slide 9: Ohio Heritage Bancorp Transaction
Ohio Heritage Bancorp Transaction Summary $37.6 million or 151% of TBY at 3/31/2014 (otstetsemteny 9.5% stock / 15% cash Cost savings: Re 4 Deal Value: * OHHB shareholders + ¢ Regulatory / OCC j August 2014 Transaction rationale: Consistently solid franchise Builds out footprint toward Cleveland Ent
Slide 10: North Akron Savings Bank Transaction
North Akron Savings Bankaitansaciton ‘ay Transaction Summary Transaction rationale: ae — Helps connect franchise along I-77 Deal Value: $20.1 millon or — Entry into an attractive market 145% of TBV at 3/31/2014 — Existing knowledge of region at PEBO 809% stock / 209% cash — Ability to improve balanc
Slide 11: Current Strategic Priorities
Current Strategic Priorities Current Strategic Road /’Peop ples ©) Map —— BANCORP. © “The Best Community Bank in America” Responsible Extraordinary Risk Management Client Experience > Our Way of Life > Asset Quality > Compliance Regulatory > Operational Risk > Information Security > Change Managemen
Slide 12: Strategic Priorities
Strategic Pronties High Quality Balance Sheet | Peoples ¢) 98 Business Line Focus Core Banking Activities '* Profitable portfolio growth * Emphasis on core deposits — -Focus onrisk versus reward — —Checking and savings accounts = -Maintain pricing discipline —Non-IB deposits over 20% of total * Crea
Slide 13: Business Line Focus
Business Line Focus @ Value Added Services * Top-lne revenue growth — Managed assets = $1.5 billion — Currently 8% of totalrevenue * Adding talent across footprint — Organic + acquisitions — Advisors addedin 2012 and 2013 — Currently 11 advisors + branches * Leveraging branch capabilities — Placing
Slide 14: Our M&A Strategy
Our M&A Strategy © * Optimize our current footprint — Gain market share and improve operating efficiency — Create more density through disciplmed expansion ¢ Target areas with characteristics similar to existing markets — Expand along major transportation routes — Focused on “mid-major” communities
Slide 15: Customers and Markets
Customers and Markets ‘ Peoples () ——— BANCORP ' BB 1205-2400 ¢ Key driver of stronger economic activity — Land owners acquiringwealth from selling drilling nghts — Local businesses benefiting from nonresident workers * Workingto help clients with their unique challenges — Hosting educational semina
Slide 16: Our Capabilities
Our Capabilities . PEOPLES |BANCORP| Bill P Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes No No No No No Yes Yes Yes Yes Yes Yes No No Yes No No No Yes Yes Yes Yes Yes No No No No Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes x No No No Yes Yes Yes Yes
Slide 17: Our Brand Image
Our Brand Image Improve Your Finances Peoples ¢) BANCORP € 33 Refreshing our Branches ‘ay ¢ 18-month, 5-phase project — Floor-to-ceiling renovations — Over $5 million being invested — Final phase completed Q1 2014 — Used national branch design experts ¢ Key Benefits: — All delivery channels “Best in
Slide 18: Financial Performance: Annual Financial Summary
Financial Performance 7 ‘Peoples () Annual Financial Summa, © FY FY 2009 2010 2011 2012 +=2013 Diluted EPS $0.22 $0.34 $1.07 $1.92 $1.63 Return on common equity 1.17% 1.76% 5.61% 9.52% 7.92% Return on assets 0.21% 0.28% 0.69% 1.11% 0.91% Net interest margin (FTE) 3.48% 3.51% 3.43% 3.39% 3.25% Effici
Slide 19: Quarterly Financial Performance
1Q 2Q 3Q 4Q Metrics 1Q 2013. «2013 «=2013 = 2013'S 2014 Diluted EPS $0.46 $0.23 $0.47 $0.44 Return on common equity 9.18% 8.74% 4.61% 9.09% 8.56% Financial Return on assets 1.06% 1.03% 0.53% 1.01% 0.95% Performance Net interest margin (FTE) 3.12% 3.15% 3.26% 3.46% 3.35% Efficiency ratio 71.61% 71.71
Slide 20: Balance Sheet
‘ay Balance Sheet Q1 2014 Q42013 Average Balances Q12013 «=Q22013 «= Q3. 2013 ($ in nullions) $ 1,041.9 | $1,1473 Total Investments (1 680.9 683.8 659.5 677.9 661.0 Interest-Beaning = Retail Deposits 1,133.1 1,087.8 1,046.8 1,098.3 1,145.9 Mon: lmetest: Bearing 320.0 326.0 395.1 371.0 385.5 Retail D
Slide 21: Allowance for Loan Losses to Loans
Allowance for Loans Losses to Loans 2.799% 2.5996 2.5396 1.6696 1.409% F 1.4296 1.07% o . 1.3896 1.2496 4.6496 2007 2008 2009 2010 2011 2012 2013 Ql 2014 |PEBO @Peer Median @$1-5 Billion Median Peers include: BKYF, CCNE, CHCO, CNND, CTBI, FBMI, FDEF, FISI, FMNB, FRME, GABC, HBNC, ISBA, LKFN, ieee SR
Slide 22: Growing the Dividend
Growing the Dividend: & Ql Q2 Q8 Q4 Ql Q2 QB Q4 Ql Q2 QB Q4 Ql 2011 2012 2013 Compounded Annual Growth Rate = 14.5% 2014 "Peoples Net Interest Margin ame Agi, 4.66% 3.86% 395% 391% 3.43% 3.43% 3390, 349% 3.410, 3.43% arom 32% are 30% ¥; 3.12% 315% ~~ = 1.72% 163% 108% 1.03% 0.93% 0.89% 9.95% 4.07% 3
Slide 23: Non-Interest Income
Non-Interest Income ‘al ($ in thousands) $31,350 $32,097 $32,050 $31,634 2008 2009 2010 $32,944 2011 37.220 $34,971 2012 2013 @ Other $3,252 $3,037 $3,594 $3,173 $3,224 $4,078 $2,942 @E-Banking $3,524 $3,882 $3,954 $4,686 $5,142 $5,955 $6,191 OTrust & investnent $4,983 $5,139 $4,722 $5,348 $5,548 $6
Slide 24: Balance Sheet Trends
Balance Sheet Trends . me $1,1792 _$1,209.6 $1,08L.1 $1,040.3 $1,024.8 gos74 $963.1 = S$L013.1 $9340 $914.8 YE 2008 YE 2009 YE 2010 YE 2011 YE 2012 012013 02 2013 03 2013 04 2013 012014 Net Loans (1) @Total Investments (2) Funding Sources $284.5 YE 2008 YE 2009 YE 2010 YE 2011 YE 2012 012013 02 2013
Slide 25: Asset Quality Trends
@ Asset Quality Trends) Brea 1.58% Lae 1.78% 1.66% 1.60% a 1.38% —— ALLL to Loan: @Provision for lan bsses Net charge-offs $03 $0.0 $02 $05) $d. ry $0.9) $a.0) 042012 012013 022013 032013 0.42013 012014 (15) 042012 012013 022013 032013 042013 012014 Linch ett La hed BE Allowance for Loan Losses Clas
Slide 26: Capital Trends
Capital Trends é) Per Share Basis $2139 gg) $2097 gnog9 822.83 890% 9.04% 9.14% 8.52% 8.56% 012013 022013 032013 042013 012014 012013 022013 032013 042013 012014 Tier 1Leverage a Tange Common Equity to Tangible Assets |Book Value BTanghleBook Value Risk-Based Capital Ratios Dividend Payout 16.05% ®
Slide 27: Non-GAAP Measures: Pre-Provision Net Revenue
Non-GAAP Measures PRE-PROVISION NET REVENUE Pre-provision net revenue (PPNR) income represents a non-GAAP financial measure commonly used to evaluate the operating performance and trends of financial services companies, including Peoples. PPNR represents the earnings capacity that can be either reta
Slide 28: Non-GAAP Measures: Tangible Common Equity
Non-GAAP Measures € Peoples uses tangible common equity ratios to evaluate the adequacy of Peoples’ stockholders’ equity. Such ratios represent non- GAAP financial information since their calculation removes the impact of intangible assets acquired through acquisitions on the consolidated balance sh
Slide 29: Peoples 1st Quarter 2014
V’ Peoples ©) Nasdaq: PEBO Investor Presentation 1* Quarter 2014