Peoples Bancorp Inc. · NASDAQ:PEBO
Peoples Bancorp — Investor Presentation (November 2014)
21 slides from Peoples Bancorp's investor presentation, Nov 3, 2014
Slide 1: Investor Presentation 3rd Quarter 2014
Peoples () Investor Presentation 3'4 Quarter 2014 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 amended,
Slide 2: Additional Information
Additional Infonnation 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 a registration statement on Form S- 4 and will file other documents regarding the proposed merger with NB&T Financi
Slide 3: Corporate Profile
Corporate Profile * Financial holding company headquartered in Marietta, Ohio, — Provide a broad range of banking, insurance, and investment services * Current snapshot: — Assets: $3.2 billion* — Loans: $2.0 billion* — Deposits: $2.5 billion* — Market capitalization: $342 million — Assets under Mana
Slide 4: Current Outlook
Current Outlook 7 ‘ay * Committed to generating positive operating leverage each year — Over 8% organic 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 — Excluding one-time
Slide 5: Investment Rationale
vestment Rationale ‘ay Unique community banking model — Greater revenue diversity for a commuuuty bank our size (8.5% to 40% fee-based) — Strong community reputation and active involvement — Local market teams capable of outmaneuvering larger banks — More sophistication and product breadth than smal
Slide 6: Recent Acquisition Activity
Recent Acquisition Activity ‘Peoples @) Feopies Recent Bank Acquisitions October 2013 Ohio Commerce Bank. Single office in Beachwood Total assets = $123 million October 2014 NorthAkron Saungs Bank Four offices headquartered in North Akron Total assets = $146 million August 2014 Ohio HentageBancorp —
Slide 7: NB&T Financial Group
NB&T Financial Group <*> NationalBank ‘Ww AND TRUST COMPANY NB&T Financial Group Inc. (NASDAQ: NBTF) * Deal announced on August 4, 2014 * 22 offices in SW Ohio * Important step in Peoples’ quest to “Build the Best Community Bank in America” * Top market share in both Clinton County and Brown County
Slide 8: Current Strategic Priorities
Current Strategic Priorities Our Strategic Road Ma ‘ Peop ples -) ———— BANCORP “The Best Community Bank in America” Responsible Extraordinary Supenor Profitable Revenue Risk Management Client Experience Workforce + Execution Risk + Delight the customer! Share the WOW moments + Professional, caring a
Slide 9: Strategic Priorities
Strategic Pronties * Primary emphasis on revenue growth ge cnt * Disciphned expense management oye x ¢ Expand revenue vs. expense growth gap beyond 2% ras * Target efficency ratio below 65%. J) ~ Superior * Balance growth with prudent credit practices Asset * Improve diversity within loan portfolio
Slide 10: Our M&A Strategy
Our M&A Strategy ‘ay * Optimize our current footprint — Gain market share and improve operating effiaency — Create more density through disaplined expansion Target areas with characteristics similar to existing markets — Expandalong major transportation routes — Focused on “mid-major” communities or
Slide 11: Customers and Markets
Customers and Markets ‘ Peoples ——— BANCORP® Utica/Mar cele Shale O99 ie bbiCitt ity * Key driver of stronger economic activity — Land owners acquiring wealth from selling drilling nghts — Hospitality sector benefiting from nonresident workers — Local businesses supplying products and services to di
Slide 12: Our Brand Promise
Yes Yes Yes NA —— Indicatex Peoples ins advange over Community 7 les au Tnformation scemat asof Oxtoter 2014 Bank group ———— sancorp 23 Our Brand Promisé | ‘ay We will work side by side to overcome challenges and seize opportunities. We will listen and work with you. Together we will build and execu
Slide 13: Refreshing our Branches
Refreshing our Branches ¢ 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 Class” — Consistent look with our new brand — More engaging custo
Slide 14: Annual Financial Summary
Annual Financial Summa, © FY FY FY 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% Efficiency ratio 60.14% 60.30% 68.98% 69.55% 7
Slide 15: Fee Revenue, Dividend Yield and Earnings Results
LTM Fee Revenue to Average Assets PEBO Peers $1-5B Dividend Yield 2. 64g, 2.27% Peers PEBO Peers $1-5B Peers include: BKYF, CCNE, CHCO, CNND, CTBI, FEMI, FOEF, FISI, FMNB, FRME,GABC, HBNC, ISBA, LKFN, LNBB, MSFG, SRCE, STBA, SYBT, THFF,TMP. 41-58 peer group represents all publicallytraded Midwest ba
Slide 16: Net Interest Margin and Non-Interest Income
Net Interest Margi 4.66% 4.64% 1.26% LM% 108% ° 103% 9.93% 9.89% ° : O85 980% 0.76% 0.72% 0.71% Q32011 Q42011 Q12012 Q22012 Q32012 42012 Q12013 Q22013 Q32013 Q42013 Q12014 Q22014 Q32014 —*-Earning Assets —*—Net Interest Margin —#~Interest Bearing liabilities Presented ona fully-tax equivalent basis
Slide 17: Loans, Deposits and Funding Sources
(ay ($ in millions) YE 2008 = YE2009 YE2010 YE2011 YE2012 012013 =©02 2013 Q32013 «042013 = 012014 022014 §=032014 Net Loans (1) @ Total Investments (2) Funding Sources YE2008 «=9YE2009 YE2010 YE2011 YE2012 012013 022013 032013 «042013 «012014 02.2014 Q3 2014 Retail CD & MMDA Checking & Savings Whol
Slide 18: Credit Quality and Capital Trends
4 \) ($ in millions) nk eePeeaaSaxXxeS em" Provision for Loan Losses & Net Charge-offs Nonuperfonning Assets 1.18% 1.66% 160% 1.06% fer 0.81% 0.79% 1.32% ALLL to Loans 117% Provision for loan losses Net charge-offs $122 418 $123 $9.7 $9.7 $10.2 022013 032013 042013 012014 022014 = 32014 ——NPAs io Lo
Slide 19: Appendix: Non-GAAP Measures
Appendix 7 (Peoples Non-GAAP Measures é PRE-PROVISION NET REVENUE Preprovision 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 th
Slide 20: Non-GAAP Measures
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 21: Non-GAAP Measures
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 s
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