Peoples Bancorp Inc. · NASDAQ:PEBO
Peoples Bancorp — Investor Presentation (February 2014)
27 slides from Peoples Bancorp's investor presentation, Feb 19, 2014
Slide 1: Investor Presentation 4th Quarter 2013
V’ Peoples Nasdaq: PEBO Investor Presentation 4 Quarter 2013 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 for Shareholders of Midwest Bancshares
Additional Information for Shareholde) of Midwest Bancshares, Inc: This presentation does not constitute an offer to sell or the solicitation of an offer to buy securities of Peoples Bancorp Inc. (“Peoples”). Peoples will file a registration statement on Form S-4 and other documents regarding the pr
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 125,000 client relationships & 75,000 households — Assets: $2.1 billion — Loans: $1.3 billion — Deposits: $1.7 billion — Ma
Slide 4: Midwest Bancshares Transaction
Midwest Bancshares Mransactiom é Midwest Bancshares, Inc. (OTCQB: MDWE) First National Bank of Wellston . eu > =| * Deal announced on January 21, 2014 \ * Single bank holding company & bank * Organized in 1886 * Two banking offices in SE Ohio — Wellston & Jackson * Limited in-market competition Jack
Slide 5: 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 6: Stock Performance
Stock Performance @ 1-Year 3-Year 5-Year 21% Peoples Bancorp @Peer Group @ NASDAQ Bank Index @SPX 500 Index 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. 7; Data as o
Slide 7: Current Strategic Priorities
Current Strategic Priorities Current Strategic Road /’Peop ples ©) Map —— BANCORP. © “The Best Community Bank in America” > Our Way of Life > Asset Quality > Compliance Regulatory > Operational Risk > Information Security > Change Management > Execution Risk Responsible Extraordinary Risk Management
Slide 8: Strategic Priorities: Core Banking Activities
trategic Prionties High Quality Balance Sheet | Peoples ¢) ts 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 9: Business Line Focus
Business Line Focus @ Value Added Services * Top-lne revenue growth — Managed assets = $1.4 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 10: Mergers & Acquisitions
Mergers & Acquisitions ‘Peoples ——— BANCORP Our M&A Siratesy ‘ay * 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 transportatio
Slide 11: Target Growth Areas and Executing Our M&A Strategy
Target Growth Areas) ‘ay lL” * High growth potential + Recently added new talent Vi One| Footprint Development + Increase market share in all areas * Insurance & Wealth Management €Xpansion potential + Insurance & Wealth * Management growth opportunities Executing Our M&A‘Siral * Villers Investments
Slide 12: Utica/Marcellus Shale Opportunity
Customers and Markets ‘Peoples ——— BANCORP Utica/ Marcellus Shale OM fortiicit: ‘ay Bh 2-20 ¢ Key driver of stronger economic activity — Land owners acquiringwealth from selling drilling nights — Local businesses benefiting from nonresident workers ¢ Working to help clients with their unique challen
Slide 13: National Banks vs Community Banks
***N ational Banks*** **Community Banks*** PEOPLES Wells Bank of [BANCORP RS 33 Conmamity Wes Park United Fargo America PNC Huntington Natioral Trust Banco Natioml Bank Bill Pay Electronic Statements Online Account Opening Online Financial Management ACH, Wires Stop Payments Positive Pay Tax Ser P2P
Slide 14: Refreshing our Branches
Peoples © reoples Improve Your Finances Peoples ¢) BANCORP € 27 Refreshing our Branches ‘ay ¢ 18 month, 5-phase project — Floor-to-ceiling renovations — Over $5 million being invested — First phase began Q1 2013 — Using national branch design experts ¢ Key Benefits: — All delivery channels “Best in
Slide 15: 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 16: Quarterly Financial Summary
4Q 1Q 2Q 3Q 4Q 20125) 2013) |)2013)|| 2013) |) 2013 Diluted EPS $0.47 $0.46 $0.23 $0.47 Metrics Return on common equity 6.99% 9.18% 8.74% 4.61% 9.09% Financial MMMM Return on assets 0.82% 1.06% 1.03% 0.53% 1.01% Performance Net interest margin (FTE) 3.42% 3.12% 3.15% 3.26% 3.46% Efficiency ratio 72.
Slide 17: Balance Sheet and Key Drivers of Shareholder Value
Balance Sheet Average Balances ($ in nullions) Q42012 Q1 2013 Q22013 Q3 2013 Q42013 $ 1,041.9} $ 1,1473 Total Investments (1 665.3 680.9 683.8 659.5 677.9 cere eae 11110} 1,133.1 1,0878| 1,0468| 1,098.3 Retail Deposits os hee Be Biot : Mon: lmetest: Bearing 298.2 320.0 326.0 395.1 371.0 Retail Depos
Slide 18: Valuation, Dividend and Asset Quality vs Peers
Price to LTMEamings YTD Dividend Payout Dividend Yield 13.02x 9096 12.87x 33.19% PEBO _Peers $15B PEBO Peers $1-5B PEBO _ Peers $1-5B ¢ Potential exists fornear-term improvement ¢ Sufficient capacity to achieve meaningful growth ¢ Target dividend payout range of 25% to 40% Source: SNL Financial and
Slide 19: Annual and Quarterly Results
Annual Results $194 $2.01 @ Earnings per common share $1.92 $1.74 @ Cash dividends declared per common share| $1.63 $1.07 2005 2006 2007 2008 2009 2010 2011 2012 2013 Quarterly Results $0.63 Q42011 = 12012 Q2 2012 Q32012 42012 Q12013 Q22013 32013 242013 Dividend data presented above reflects amounts
Slide 20: Non-Interest Income and Operating Revenues/Expenses
Non-Interest Income ($ in thousands) ‘al $31,350 $32,097 $32,050 $31,634 $32,944 $34,971 37.220 2008 2009 2010 2011 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 $6
Slide 21: Balance Sheet Trends
© ($ in millions) $1,179.2 Balance Sheet Trend: $LO081.1 $1,024.8 $1,013. $1,040.3 $148 $9229 goss4 972 $9674 $963.1 YE 2008 =YE2009 YE2010 YE2011 012012 022012 032012 042012 012013 022013 032013 042013 Net Loans (1) @Total Investments (2) Funding Sources YE2008 «=9YE2009 =YE2010 YE2011 012012 02201
Slide 22: Asset Quality Trends
Asset Quality Tre nds ($ in millions) Q —— NE Provision for Loan Losses & Net Charge-offs Nonperfo: ‘Assets 1.15% 1.88% nate oie 1.66% eat 1.43% ——ALLL to Loans Provision for oan bosses Net charge-offs $0.4 $03 $a.0) $l) $09) $0.0) 032012 = 42012-12013 © 22013 © 032013042013, $a5) 032012 042012 «= Q
Slide 23: Capital Trends
ae Trends é) ($ in millions) Per Share Basis 9.14% 2 i $20.97 $20.89 8.83% 8.90% 9.04% 042012 012013 022013 032013 042013 042012 012013 022013 032013 042013 Tier Leverage a Tange Common Equity to Tangible Assets |Book Value BTanghleBook Value Risk-Based Capital Ratios 15.43% 105% 554% 15.46% 042012
Slide 24: 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 25: 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 26: Peoples Bancorp
V’ Peoples ©) Nasdaq: PEBO Investor Presentation 4 Quarter 2013
Slide 27: Slide 27
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