Slide 1: Investor Presentation 2nd Quarter 2022
120 xs Peop ples @, 1902 INVESTOR PRESENTATION 2022 2nd QUARTER 2022
Slide 2: Table of Contents
2) TABLE OF CONTENTS PAGE 4 PROFILE, INVESTMENT RATIONALE, CULTURE AND STRATEGY PAGE 10 CREDIT, CAPITAL & LIQUIDITY PAGE 21 Q2 2022 FINANCIAL INSIGHTS PAGE 35 Q2 2022 APPENDIX
Slide 3: Safe Harbor Statement
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 amended, and the Private Securities Litigation Reform Ac
Slide 4: Profile, Investment Rationale, Culture & Strategy
(@) PROFILE, INVESTMENT RATIONALE, CULTURE & STRATEGY
Slide 5: Geographic Profile
ae GEOGRAPHIC PROFIL NASDAQ: PEBO << ty PEOPLES BANK GEOGRAPHIC FOOTPRINT (@) PEBO FOOTPRINT PEBO SNAPSHOT AS OF JUNE 30, 2022 Loans: $4.6 billion MMI COUNTIES WHERE PEBO HAS TOP 3 MARKET SHARE* Assets: $7.3 billion MMM COUNTIES WHERE PEBO HAS OVER S100 MILLION OF Deposits: $5.9 billion DEPOSITS AND
Slide 6: Rationale
RATIONALE UNIQUE COMMUNITY BANKING MODEL Strongest deposit market share positions in more rural markets where we can affect pricing. Top 3 market share in 32 counties across three states. Presence near larger cities puts us in a position to capture lending opportunities in urban markets (e.g. Cincin
Slide 7: Corporate Culture
CORPORATE CULTURE NASDAQ: PEBO OUR VISION Our vision is to be the BEST COMMUNITY BANK IN AMERICA OUR CORE VALUES Our actions are guided by our core values represented by the Promise Circle, which embodies how we do business and our never ending pursuit of creative value for our associates, our commu
Slide 8: Road Map
ag AD MAP (NASDAQ: PEBO Peoples BANK * Commitment to Superior Shareholder Returns * Great Place to Work * Clients’ First Choice for Financial Services * Meaningful Impact on Our Communities BEST COMMUNITY BANK IN AMER: exhg exh RESPONSIBLI + Everyone isa Risk Manager + Treat The Client Like Family *
Slide 9: External Recognition
EXTERNAL RECOGNITION PEOPLES BANK IS DELIVERING IN TERMS OF SBA 7(a) APPROVED DOLLARS 120 ACTS OF KINDNESS PEOPLES BANK RANKED FINANCIAL ACROSS OUR FOOTPRINT IN 2022 SERVICES AS A WAY TO CELEBRATE OUR 120™ ANNIVERSARY. TOP5 | TOP 10 inOH inW TOP 15% NATIONALLY FOR FISCAL YEAR ENDING SEPTEMBER 30, 20
Slide 10: Credit, Capital & Liquidity
(@) CREDIT, CAPITAL & LIQUIDITY 10
Slide 11: Loans & Leases Portfolio Composition
LOANS & LEASES’ PORTFOLIO COMPOSITION « Robust concentration management process focused on portfolio risk diversification « Relationship based lending + Commercial Real Estate (CRE) and Commercial & Industrial (C&l) are balanced with Consumer + CRE financing generally for "A" tier developers only «+
Slide 12: Asset Quality
[ 12 ASSET QUALITY ty, NASDAQ: PEBO 100% OUR DELINQUENCY AND NET CHARGE-OFF TRENDS HAVE REMAINED STABLE FOR FIVE YEARS Percentage of Loans Considered “Current” il 208 = 018 2021 Percentage of Net Charge-Offs to Average Loans Annualized . ial 2017 2018 2019 2020 2021 YTD22 Increase in 2021 charge-off
Slide 13: NPAs Have Continued to Decrease
NPAS HAVE CONTINUED TO DECREASE SINCE THE INCREASE IN Q3 2021, WHICH WAS MAINLY DUE TO ACQUIRED LOANS* $60 $50 cre 2 B40 I RESIDENTIAL 3 mci = 2 $30 fm HELOC = CONSUMER $10 so 2017 2018 2019 OF20 02-20 03-20 04-20 OF21 O2-21 0321 04-21 O122 02-22 *The accounting for purchased credit deteriorated loa
Slide 14: Asset Quality: Classified and Criticized Loans
ASSET QUALITY CLASSIFIED AND CRITICIZED LOANS AS A PERCENTAGE OF TIER 1 CAPITAL ARE WELL MANAGED. INCREASE IN Q3 DUE TO ACQUISITION OF PREMIER FINANCIAL BANCORP, INC. 4 B CRITICIZED LOANS / TIER 1 CAPITAL + ALLL * CLASSIFIED LOANS / TIER 1 CAPITAL + ALLL * “tnaccordance with SEC reporting methodolog
Slide 15: CRE Concentration Analysis
400% 350% 300% 250% 200% 150% 100% 50% 0% RE CONCENTRATION RECO CONALYSIS CRE EXPOSURE IS WELL BELOW SUPERVISORY CRITERIA ESTABLISHED TO IDENTIFY INSTITUTIONS WITH HEIGHTENED CRE CONCENTRATION RISK PEER BANK SUBS - CRE LOANS / RISK-BASED CAPITAL 300% IS THE LEVEL CONSIDERED HEIGHTENED CRE CONCENTRAT
Slide 16: Construction Concentration Analysis
16 110% 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% RE CONCENTRATION ANALYSIS PEBO IS MEANINGFULLY BELOW THE AVERAGE FOR S1-10 BILLION BANKS PEER BANK SUBS - CONSTRUCTION, LAND AND LAND DEVELOPMENT LOANS / RISK-BASED CAPITAL 100% IS THE LEVEL CONSIDERED HEIGHTENED CONSTRUCTION, LAND AND LAND DEVELOP
Slide 17: Loan Composition
LOAN COMPOSITION LOAN COMPOSITION REFLECTS DIVERSIFIED RISK PROFILE és en TOTAL C&l PORTFOLIO = $0.9 BILLION TOTAL LOAN PORTFOLIO* = $4.5 BILLION TOTAL CRE PORTFOLIO** = $1.5 BILLION WhICH INCLUDES PPP LOANS 1 COMMERCIAL REAL ESTATE (CRE) 32% 1 RETAIL 12% 7 WAREHOUSE 5% 1 FOOD SERVICES 16% 2 COMMERC
Slide 18: Capital Priorities
18 U oe NPE NASDAQ: PEBO CAPITAL PRIORITIES * Organic growth © Dividends Share repurchases © Acquisition activities DIVIDENDS * 7 years of increasing dividends. Dividend paid increased from $0.15 per share for Q1 2016 to $0.38 in the most recent quarter * Based on the closing stock price of Peoples’
Slide 19: Deposit Franchise
DEPOSIT FRANCHISE NASDAQ: PEBO NOT TO SCALE LOW LOAN TO DEPOSIT RATIO PROVIDES LOW COST LIQUIDITY TO FUND FUTURE GROWTH LOANS / DEPOSITS - PEER GROUP 75.75% UNIV. St $10 B AVERAGE: 76.43% TTT SL i o& & & o © ao ac FES EF ESES EES ESEESESEEEEES ‘Source: S&P Global Market intelligence, as of 3/31/2022
Slide 20: Cost of Deposits vs. Bank Universe
PEBO IS BELOW THE SI - $10 BILLION BANK UNIVERSE IN TERMS OF COST OF DEPOSITS AS OF MARCH 31, 2022 TOTAL DEPOSIT COST (%). 0.28 0.23 UNIV. $1- $10 B AVERAGE: 19% 0.18 0.13 0.08 0.03 4 Ww aw 1S) n a2 aD 1S) aeuok ow uw PaesEESSERFZSSSSLZ ARS R SRF FS goosSrFO4 a 2F25rFPHGEUUG Zz Source: SEP Global Ma
Slide 21: Q2 2022 Financial Insights
Q) Q2 2022 FINANCIAL INSIGHTS
Slide 22: Highlights & Key Impacts
or NG IGHLIGHTS & KEY IMPACTS NASDAQ: PEBO. FINANCIAL: Net interest income increased $7.2 million or 13% compared to the linked quarter. Net interest margin increased 43 basis points to 3.84% for the second quarter of 2022, compared to 3.41% for the linked quarter and increased 39 basis points compa
Slide 23: Financial Expectations
FINANCIAL EXPECTATIONS gh » 4% TO 6% , EXCLUDING PPP LOANS » 12% 10 16% GROWTH COMPARED TO 2021 b pelle DAMUCRATE STABILIZATION noxnreresrexrese_ | Roane or » TARGET RATIO IN THE HIGH 50'S 23
Slide 24: Acquisition of Premier Financial Bancorp, Inc.
ACQUISITION OF . PREMIER FINANCIAL BANCORP, INC mnt) ACQUISITION EFFECTIVE AS OF SEPTEMBER 17, 2021 « Premier Financial Bancorp, Inc. (Nasdaq: PFBI) was headquartered in Huntington, WV and was the holding company for Citizens Deposit Bank and Trust, Inc. and Premier Bank, Inc. « Operated 46 branches
Slide 25: Vantage Financial Acquisition
VANTAGE Fi NAN, ACQUISITION EFFECTIVE MARCH 7, 2022 « Vantage Financial (“Vantage”) was a privately held, mid-ticket, national equipment finance company based in Excelsior, Minnesota. The company originates leases primarily for mission critical IT equipment across a wide array of industries includin
Slide 26: Digital Experience Coming Soon
—- DIGITAL @ EXPERIENCE COMING SOON Peoples @) BANK 4) We are excited to announce Gi J anew online and mobile banking experience 4 y coming in the second half of August 2022! This new experience is simpler, offers a friendlier user experience and more features to help you stay in control of your fin
Slide 27: Performance
PERFORMANCE NASDAQ: PEBO (yy, BANKING SECTOR PERFORMANCE HAS LAGGED S&P 500 IN TERMS OF 3 & 5 YEAR TOTAL ANNUAL RETURN TOTAL ANNUAL RETURN AS OF JUNE 30, 2022 19% 186 2% a 6% 0% 6 "6 om YEAR 3-YEAR S-YEAR CUMULATIVE TOTAL RETURN FOR THE THREE MONTHS ENDED JUNE 30, 2022 om Hi rcso Mi cercroup Ml ssPs
Slide 28: Revenue
a REVENUE NASDAQ: PEBO TOTAL REVENUE OF $155 MILLION FOR YTD 2022 Seno Peoples benefited from the acquisition of ASB Financial Corp. in the second quarter of 2018, the $200,000 |— acquisition of First Prestonsburg Bancshares Inc. in the second quarter Ese of 2019, the acquisition of Triumph @ — sis0
Slide 29: Investment and Insurance Revenue
TOTAL INVESTMENT REVENUE Q2 2022 $4.3 MILLION 1 FIDUCIARY 47% 2 BROKERAGE 38% 3 EMPLOYEE BENEFITS 15% INSURANCE & INVESTMENT INCOME GONPOStT N NASDAQ: PEBO TOTAL INSURANCE REVENUE Q2 2022 $3.6 MILLION 1 P&C COMMERCIAL LINES 62% 2 P&C PERSONAL LINES 22% 3 LIFE & HEALTH 14% 4 OTHER 2% wy
Slide 30: Expenses and Efficiency Ratio
Eee & FFICIENCY RATIO Zy_ NASDAQ: PEBO ($ THOUSANDS) NOT TO SCALE THE RECENT ESCALATION IN EXPENSES WAS DUE COVID-19 AND INCREASED NON-INTEREST TO ACQUISITIONS, AND AN INCREASE IN FTE'S FOR EXPENSE IMPACTED THE EFFICIENCY RATIO GROWTH AND TECHNOLOGY INVESTMENTS IN 2020 & 2021 CORE NON-INTEREST EFFIC
Slide 31: Improvement in Key Metrics
2.0% 1.5% 1.0% 0.5% 0.0% IMPROVEMENT IN KEY METRICS NASDAQ: PEBO = “‘\y, WE HAVE MADE STEADY PROGRESS ON THESE METRICS OVER THE RECENT YEARS. THE PROVISION FOR CREDIT LOSSES, INTEREST RATE ENVIRONMENT, AND OTHER ECONOMIC IMPACTS OF COVID-19 SIGNIFICANTLY IMPACTED THESE METRICS IN 2020 AND 2021 RETUR
Slide 32: Loan Growth
YY AN GROWTH ty, NASDAQ: PEBO TOTAL LOANS" WERE $4.6 BILLION AS OF JUNE 30, 2022, WHICH INCLUDED $15 MILLION IN PPP LOANS $5,000 -—— IM PREMIER FINANCIAL BANCORP, INC, $4,000 ‘ACQUIRED LOANS TOTAL PPPLOANS, (TOTAL ACOUIRED LEASES $3,000 [- IM PREMIUM FINANCE ACQUIRED LOANS (Ml FIRST PRESTONSBURG ACQ
Slide 33: Earning Asset Mix
EARNING ASSET MIX NASDAQ: PEBO 4 THE INCREASE IN EARNING ASSETS IN 2021 WAS DUE TO ACQUISITIONS 7 — 80% TOTAL EARNING ASSETS (IN SBILLIONS) | 40% 2 —| 30% SLASSV ONINYVS IWLOL JO 3OVLNIDN3d $0 20% YT FAs Frag. FY20 FY2I yip22 TMB INVESTMENTS = LOANS =) INVESTMENTS % {MIB LOANS % WORKING TOGETHER. BU
Slide 34: Deposit Growth
DEPOSIT GRO DEPOSIT BALANCES BENEFITED FROM PPP LOAN PROCEEDS, FISCAL STIMULUS FOR CONSUMERS AND COMMERCIAL CLIENTS, AND THE ACQUISITION OF PREMIER FINANCIAL BANCORP, INC. $6,500 $5,862 $5929 BROKERED CERTIFICATES OF DEPOSIT HB covernmenta veposir accounts $5,200 |_ HBB Won manner oepostr accounts B
Slide 35: Q2 2022 Appendix
@, 02.2022 APPENDIX
Slide 36: Non-US GAAP Measures: Pre-Provision Net Revenue
APPENDIX NON US GAAP MEASURES NASDAQ: PEBO PRE-PROVISION NET REVENUE Pre-provision net revenue (PPNR) has become a key financial measure used by federal bank regulatory agencies when assessing the capital adequacy of financial institutions. PPNR i defined as net interest income plus total non-nteres
Slide 37: PPNR Adjusted for Non-Core Items
APPENDIX NON-US GAAP MEASURES NASDAQ: PEBO (A PRE-PROVISION NET REVENUE ADJUSTED FOR NON-CORE ITEMS Pre-provision net revenue (PPNR) has become a key financial measure used by federal bank regulatory agencies when assessing the capital adequacy of financial institutions. PPNR adjusted for ‘non-core
Slide 38: Core Non-Interest Income and Expense
38 APPENDIX NON-US GAAP MEA NASDAQ: PEBO CORE NON-INTEREST INCOME Core non-interest income is a financial measure use by Peoples’ recurring non-interest revenue stream. This measure is non-US GAAP since it excludes the impact of all gains and/or losses, and core banking system conversion revenue wai
Slide 39: Efficiency Ratio and Adjusted for Non-Core Items
APPENDIX NON-US GAAP MEASURES NASDAQ: PEBO (A EFFICIENCY RATIO AND ADJUSTED FOR NON-CORE ITEMS The efficiency ratio is a key financial measure used to monitor performance. The efficiency ratio is calculated as total non-interest expense (less amortization of other intangible assets) as a percentage
Slide 40: Tangible Equity and Tangible Book Value per Share
APPENDIX NON US GAAP MEASURES NASDAQ: PEBO TANGIBLE EQUITY TO TANGIBLE ASSETS AND TANGIBLE BOOK VALUE PER SHARE Peoples uses tangible capital measures to evaluate the adequacy of Peoples’ stockholders’. Such ratios represent non-US GAAP financial measures since the calculation removes the impact of
Slide 41: Return on Average Assets Adjusted for Non-Core Items
APPENDIX NON-US GAAP MEASURES NASDAQ: PEBO (A RETURN ON AVERAGE ASSETS AND ADJUSTED FOR NON-CORE ITEMS The return on average assets adjusted for non-core items represents a non-US GAAP financial measure since it excludes the release of the deferred tax asset valuation allowance, the impact of the Ta
Slide 42: Return on Average Tangible Stockholders' Equity
2 APPENDIX NON US GAAP MEASURES NASDAQ: PEBO RETURN ON AVERAGE TANGIBLE STOCKHOLDERS’ EQUITY The return on average assets adjusted for non-core items represents a non-US GAAP financial measure since it excludes the release of the deferred tax asset valuation allowance, the impact of the Tax Cuts and
Slide 43: Return on Average Stockholders' Equity Adjusted for Non-Core Items
APPENDIX NON-US GAAP MEASURES NASDAQ: PEBO (A RETURN ON AVERAGE STOCKHOLDERS’ EQUITY ADJUSTED FOR NON-CORE ITEMS The return on average stockholders’ equity adjusted for non-core items represents a non-US GAAP financial measure since it excludes the release of the deferred tax asset valuation allowan
Slide 44: Contact
Peoples (Q) BANK CHUCK SULERZYSKI President and Chief Executive Officer 740.374.6163 Chuck.Sulerzyski@pebo.com KATIE BAILEY Executive Vice President Chief Financial Officer and Treasurer 740.376.7138 Kathryn.Bailey@pebo.com ‘Member mark of Peoples Bank. istered service mark of Peoples Bank. vr servi