Peoples Bancorp Inc. · NASDAQ:PEBO
Peoples Bancorp — Investor Presentation (August 2017)
20 slides from Peoples Bancorp's investor presentation, Aug 30, 2017
Slide 1: Investor Presentation 2nd Quarter 2017
Peoples ¢) Investor Presentation 2>4 Quarter 2017 Safe 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, as am
Slide 2: Profile and Investment Rationale
¢ Profile and Investment Rationale « Strategy * Q2 2017 Performance ¢ Appendix Profile and Investment Rationale Me Peoples ( 2 =~ BANC CR =
Slide 3: Corporate Profile and Investment Rationale
Corporate Profile * Financial holding company headquartered in Marietta, Ohio, — Provides a broad range of banking, insurance, and investment services * Current snapshot: — Assets: $3.5 billion; Loans: $2.8 billion — Deposits: $2.7 billion — Market capitalization: $565 million — Assets Under Admin/M
Slide 4: Strategic Road Map
Strategy Strategic Road Map ‘Peoples () —————— BANCORP: “Best Community Bank in America” * Great Place to Bank * Commitmentto Superior Shareholder Returns * Great Place to Work * Meaningful Impacton Our Communities ann) Profitable R Growth cre summa Client Experience oe sheet First-Class Workplace O
Slide 5: Strategic Priorities and Targets
Strategic Priorities ¢ 2) See page 15 ¢ Focused on sustainable revenue growth Positive @©periti ¢ Disciplined expense management See page 16 ie : Ss § Expand revenue vs expense growth gap beyond 2% See page 17 SESE ¢ Dive core efficiency ratio toward 60% g See page 18 _ Suncior ¢ Preserve key metric
Slide 6: Our Capabilities
Our Capabilities ***National Banks*** Bank of America * Strongest deposit market share positions in more rural markets where we can affect pricing * Presence near larger cities puts us in position to capture lending opportunities in more urban markets (e.g. Cleveland, Akron, Canton, Cincinnat ens ‘T
Slide 7: Second Quarter 2017 Highlights
Q2 2017 Performance fi Peoples ¢ Q —_———_ BANCORP 9 ts Second Quarter 2017 Highlights a) ¢ Reported record second quarter earnings of $9.8 million ¢ Grewloans by 6% annualized, compared to December 31, 2016, with strong performance in both indirectand commercial & industrial lending ¢ Efficiency rat
Slide 8: Total Revenue Growth
Total Revenue Growth (ay 10% increase in total revenue from Q4-15 to Q2-17 $40,000 $35,000 $30,000 $25,000 (thousands) Not to scale $20,000 $15,000 $10,000 Q415 Q1-16 Q2-16 Q3-16 Q416 Ql17 Q2.17 mNetInterestIncome ™ Fee-Based Income "Peoples ss © * sc Cor $27,000 $25,000 $23,000 $21,000 $19,000 (tho
Slide 9: Operating Leverage
Operating Leverage Operating leverage is the difference between total revenue growth and non-interest expense growth, on a percentage basis. Versus the same quarter in the prior year, ; Versus the prior year, adjusted operating adjusted operating leverage has been positive ; leverage was positive fo
Slide 10: Improvement in Key Metrics
Improvementin Key Metrics Peoples’ focus on steadily growing loans and deposits, managing expenses, and increasing operating leverage has resulted in improvementin key financial metrics. Return on Average Assets Return on Average Tangible Stockholders’ Equity 1.15% 142% 14.0096 13.71% Year 1.08% Yea
Slide 11: Loan Composition
Loan Composition Loan Portfolio (Excluding D eposit ODs) ‘Data as of June 30, 2017 Residennal Real Estate 22.496 ($millions) Notto scale Q2.16 Q3-16 Q416 Qll7 Q2-17 22 BANCORP™
Slide 12: Total deposits were up 6% over June 30, 2016
iy Total deposits were up 6% overJune 30, 2016 Non-interest bearing deposits represented 29% of total deposits as of June 30, 2017, versus 28% as of June 30, 2016 $2,510 $2,677 g & 28% 28% 28% 29% Q2-16 Q816 Q416 Quy Qe? @ Non-interest bearing deposits @ Retail certificates of deposit = Money market
Slide 13: Prudent Use of Capital
Prudent Use of Capital J a) * Dividends — Cash dividends paid increased 47%, from $0.15 per share for the six months ended 6/30/2015 to $0.22 per share for the six months ended 6/30/17. * Share repurchases — InQ4 2015, a share repurchase program was established, authorizing Peoples to purchase up to
Slide 14: CRE Concentration Analysis / Business Highlights
CRE Concentration Analysis . a) Construction, Land, and Land Development Loans / Risk-Based Capital + Soume:SNL Financial Commemat Bank Call Repot Dam as of (317 uf Heapaits OOCHES Caines @Dtow detartwreat iene Peoples 2 ‘Sates aad ed Geese. CRE Loner ana L Srcenjed CRE ar dag) BANCORP No 7 Business
Slide 15: Fee-Based Income Composition
t Income Composition K EG onthe & peter : ‘ay Other P&C Commeraal lines 57.7% ** Approximately 90% attributable to P&C Commercial Lines Jaane Peoples Ol * Trailing Twelve Months from 6/80/17 29 BANCORP: Appendix ‘ Peop ples -) ———————— BANCORP
Slide 16: Non-GAAP Measures
Non-GAAP Measures PRE-PROVISION NET REVENUE Pre-provision net revenue (PPNR) has become a key financial measure used by state and federal bank regulatory agencies when assessing the capital adequacy of financial institutions. Pre-provision net revenue is defined as net interest income plus total fee
Slide 17: Non-GAAP Measures
Non-GAAP Measures CORE FEE-BASED INCOME Core fee-based income is a financial measure used to evaluate Peoples’ recurring fee-based revenue stream. This measure is non-GAAP since it excludes the impact of system upgrade revenue waived. Gin Thousands) Fys Fyl6 YTD-17 Total fee-based income $ 47441 $ 5
Slide 18: Non-GAAP Measures
Non-GAAP Measures ADJUSTED EFFICTE. (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 amortization of other intangible assets) as a percentage of fully tax-equivalent net interes
Slide 19: Non-GAAP Measures
Non-GAAP Measures RETURN ON The return on average tangible stockholders’ equity ratio is a key financial measure used to monitor performance. It is calculated as net income (less after-tax impact of amortization of other intangible assets) divided by average tangible stockholders’ equity. This measu
Slide 20: 2nd Quarter 2017 Earnings Release
2-4 Quarter 2017 Earnings Release (Peoples @ Pres
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