Peoples Bancorp Inc. · NASDAQ:PEBO
Peoples Bancorp — Investor Presentation (May 2016)
18 slides from Peoples Bancorp's investor presentation, May 10, 2016
Slide 1: Investor Presentation 1st Quarter 2016
Peoples () Investor Presentation 1%* Quarter 2016 Safe Harbor Statement 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, as amende
Slide 2: Profile and Investment Rationale
¢ Profile and Investment Rationale ° 15* Quarter 2016 Performance * Strategy * 2016 Performance Outlook Appendix Profile and Investment Rationale —— BANCORP (Peoples @)
Slide 3: Corporate Profile and Investment Rationale
Corporate Profile * Financial holding company headquartered in Marietta, Ohio, — Provide a broad range of banking, insurance, and investment services * Current snapshot — Assets: $3.3 billion; Loans: $2.1 billion — Deposits: $2.6 billion — Market capitalization: $392 million — Assets under Managemen
Slide 4: 1st Quarter 2016 Performance
1 Quarter 2016 Performance / Peop les ¢ FeOoples ( chats ¢ Largest quarterly net income in Peoples’ history - $8 million ¢ Annualized loan growth of 6% ¢ Deposit growth of 2% vs. 12/31/15 ¢ Expense controls helped reduce core efficiency ratio to 64.26% * Fee income was 34% of revenue ¢ Dividend incr
Slide 5: Summary Financials
Summary Financials QE QE Metrics 3/31/16 12/31/15 OMU)$ OU) % Investment securities $ 885,462 S$ 868,830 S 16,632 Gross loans 2,105,115 2,072,440 32,675 2% Allowance for loan losses (7.621) (16,779) (842) 5% Net loans 2,087,494 2,055,661 31,833 2% Balance Sheet Highlights Total assets 3,294,929 3,25
Slide 6: Core Efficiency
Core Efficiency Efficiency has improved as a result of expense control and revenue growth First Quarter Firs Following Quer 73.00% of Ohio Heritage Bancorp 71.0036 69.00% 67.00% 65.00% (3.3%) CAGR 65,0036 61.00% S/S1/2014 6/30/2014 9/SO/IOI4 19/S1PQ014 S125 G/SO/2015 9/S0/2015 19/31/2015 3/31/2016 @
Slide 7: Credit Quality and Credit Exposure
a) While the total loan portfolio has increased 5.7% since 3/31/15, the Criticized Ratio only increased 5.4%, and the Classified Ratio decreased by 22.0% 6. 456 42.6% ! 24.59% & 21.79% 3/31/2015 6/30/2015 9/30/2015 12/81/2015 3/31/2016 eet Criticized / Tier 1 Capital + ALLL omeClassified/ Tier 1 Cap
Slide 8: Loan and Deposit Composition
Loan and Deposit Comp Loan Portfolio (Excludmg Deposit ODs) Deposit Portfolio Real Estate 26.996 ~» Insurance & Investment Income @Gnipestae ¢ } s muda a — er 1.7%. P&C Commeraal Lines 59.0% Trailing Twelve Morths from 3/31/16 People Yall ———— Bancorp 16
Slide 9: Business Highlights
Business Highlights é * Commercial Banking — Loans were up $112 million or 10% from March 2015 — Strong pipeline with $39 millionin scheduled fundings in Q2 2016 — $20 millionlending “house limit” although legal limitis over $40 million ¢ Retail Banking — Non-interest beanng DDA at 25% of total depo
Slide 10: Strategic Road Map
Strategic ad Map © * Commitmentto Superior Shareholder Returns * Great Place to Work Our Way of Life * Broad Delivery Channels * Delight the Customer * Knowledgeable, Caring Associates Consistently aureus omen Advice / Solutions + Consistent Experience at Every Touch Pomt + DWYSYWD “Best Community B
Slide 11: Strategic Targets
Strategic Targets 5-Year ctual QE Strategic Metrics 2015 3/31/16 Target Range Net interest margin (FTE) 3.60% to 3.80% Total revenue growth (1) 32.40% 9.02% 5% to 8% Total expense growth (1) 35.38% -14.59% 3% to 6% Non-inter est income to total revenue 32.71% 33.63% 35% to 40% Efficiency @ 75.50% 64
Slide 12: 2016 Performance Outlook
2016 Performance Outlook 7 (Peoples 2016 Outlook € * Maintain efficiency ratio below 65% — Expenses beat quarterly run rate target of $26.5 million in Q1 providinga ratio of 64.26% — Targeting efficiency ratio slightly below 65% for the year, dnven primarily by continuation of expense management ini
Slide 13: 2016 Outlook
2016 Outlook é * Complete core banking system platform conversion — Convertingto a best-in-class third party platform — Will support future growth and improve operational efficiencies * Continue executing on acquisition strategy — Pnmanily focused on surance and investment opportunities in 2016 to b
Slide 14: Quarterly Financial Performance Metrics
Q 4Q 2015 2015 2015 2015 Diluted EPS ($0.04) $0.27 $0.22 Return on common equity -0.78% 4.69% 3.89% 2.42% 7.59% Return on assets -0.10% 0.61% 0.51% 0.32% 0.98% Pre-provision net revenue to assets (1) 2) 0.00% 0.99% 1.40% 1.31% 1.54% Net interest margin FTE) 3.46% 3.46% 3.55% 3.56% 3.53% 1Q 2016 Metr
Slide 15: Non-GAAP Measures: Pre-Provision Net Revenue
Non-GAAP Measures PRE-PROVISION NET REVENUE Pre-provision net revenue (PPNR) 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 retained in
Slide 16: Non-GAAP Measures: Efficiency Ratio
Non-GAAP Measures EFFICIENCY RATIO The efficiency ratio is a key financial measure used to monitor performance. The efficiency ratio is calculated as non-interest expense (less intangible amortization) as a percentage of fully tax-equivalent net interest income plus non-interest income. This measure
Slide 17: Non-GAAP Measures: Adjusted Efficiency Ratio
Non-GAAP Measures ADJUSTED EFFICIENCY RATIO The adjusted efficiency ratio is a key financial measure used to monitor performance. The adjusted efficiency ratio is calculated as core non-interest expense (less intangible amortization) as a percentage of fully tax-equivalent net interest income plus n
Slide 18: Non-GAAP Measures: Tangible Equity Ratios
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 the calculations exclude the impact of intangible assets acquired through acquisitions on both total stockholders’ equity