Slide 1: Investor Presentation 2nd Quarter 2016
y Peoples ¢), Nasdaq: PEBO Investor Presentation 2>4 Quarter 2016
Slide 2: Safe Harbor Statement
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 21 of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform
Slide 3: Agenda
¢ Profile and Investment Rationale e 294 Quarter 2016 Performance * Strategy * 2016 Performance Outlook ¢ Appendix
Slide 4: Profile and Investment Rationale
Profile and Investment Rationale BANCORP® /Peop plese)
Slide 5: Corporate Profile
© Corporate Profile * Financial holding company headquartered in Marietta, Ohio, — Provide a broad range of banking, insurance, and investment services * Current snapshot: — Assets: $3.3 billion; Loans: $2.1 billion — Deposits: $2.5 billion — Market capitalization: $396 million — Assets Under Manage
Slide 6: Investment Rationale
Investment Rationale * Unique community banking model — Greater revenue diversity for a community bank our size (82% fee-based) — Strong community reputation and active involvement — Local market teams capable of outmaneuvening larger banks — More sophistication and product breadth than smaller bank
Slide 7: 2nd Quarter 2016 Performance
24 Quarter 2016 Performance BANCORP® /Peop plese)
Slide 8: Highlights
lighlighits © * Second consecutive quarter delivering $8 million earnings ge ¢ Annualized loan growth of 4% with strong performance in both Indirectand Commercial & Industrial Lending ¢ Asset quality improving with net charge-offs falling to 0.03% of loans, and reduced levels of both criticized and
Slide 9: Metrics
a QE 6/30/16 QE 3/31/16 Metrics OM) $ OU) % Investment securities S$ 855,326 S$ 885,462 S$ (30,136) 3% Gross loans 2,128,790 2,105,115 23,675 1% Allowance for loan losses 7.838) (17,261) 677) 3% Balance Sheet Sipabaaual 2,110,952 2,087,854 23,098 1% STEEP) Total assets 3,333,455 3,294,929 38,526 1%
Slide 10: Operating Expenses
Operating Expenses Four consecutive quarters of well-controlled expenses (4.8%) dedinein core expenses: from2Q15to 2Q-16 2Q-15 8Q-15 4Q-15 1Q-16 29-16 m= Core Non-Interest Expenses * m= Non-Core Non-Intere st Expenses * * Non-GAAP financial meamre, See Appendix Peoples O BANCORP. 10
Slide 11: Core Efficiency
Core Efficiency Efficiency has improved as a result of expense control and revenue growth 73.00% 7.00% 69.0056 67.0036 65.0036 65.0036 61.0036 ‘First Quarter Firs Following Quarter ‘Acquisition Folloning of Ohio Heritage Acquisition Bancorp of NB&T* | il [7 _ GfS0/2014 9/30/2014 12/31/2014 3/31/2015
Slide 12: Originated loans were up 19% over the prior year quarter
Originated loans were up 19% overthe prior year quarter, and 9% since year-end. 1996 growth 6/30/2015 9/30/2015 12/31/2015 3/31/2016 6/30/2016 Originated Loans ™ Acquired Loans Peoples (> 12 BANCORP.
Slide 13: Asset Quality
Asset Quality Criticized and Classified loan levels continue to improve 24.56 (percent) 21.7% 17.9% 3/312015 6/20/2015 9/80/2015 19/81/2015 3/31/2016 6/0/2016 ceteCriticized/Tier 1 Capital+ ALLL ommClassified/ Tier 1 Capital + ALLL 7Peoples(\ 13 —= sancore
Slide 14: Direct credit exposure to energy industry clients remains low
Direct credit exposure to energy industry clients remains low at 1.4% of total commitments, and exposure to large relationships was less than 5% of total commitments % of Total Credit Commitments $ % of Total Credit Commitments $ Energy Industry Exposure Large Relationship Exposure (Oil/Gas/Coal) (R
Slide 15: CRE Concentration Analysis
CRE Concentration Analysis) * CRE exposure is well below supervisory criteria established to identify institutions with heightened CRE concentration risk — Exposure levels also compare favorably to peer mstitution concentration levels Peer Bank Subs CLD Loans / Risk-Based Capital Peer Bank Subs -CRE
Slide 16: Residential Real Estate
Residential ‘Real Estate 26.196 ‘Data as of June 30, 2016
Slide 17: Trailing Twelve Months from 6/30/16
‘Trailing Twelve Morths from 6/80/16 Wy
Slide 18: Business Highlights
Business Highlights * Commercial Banking — Loans were up $61 million or 5% from June 2015 — Strong pipeline with $25 mullionin scheduled net fumdings in Q3 2016 — $20 millionlending “house limit” although legal limitis over $40 million * Retail Banking — Non-interest bearig DDA at 25% of total depos
Slide 19: Strategy
Slide 20: Strategic Road
Strategic Road (a * GreatPlace to Work Our Way of Life Asset Quality Compliance / Regulatory Operational Risk Information Security Change Management Execution Risk Reputational Risk Commitmentto Superior Shareholder Returns . “Best Community Bankin America” Great Place to Bank + Meaningful Impacton
Slide 21: Strategic Priorities
tratesic Priontie © * Primary emphasis on revenue growth Positive . @peniin ¢ Disciplined expense management te 5 ¢ Expand revenue vs. expense growth gap beyond 2% jE MS ENS © Target core efficiency ratio below 65% y . < Superior * Balance growth with prudent credit practices Asset ¢ Improve diversi
Slide 22: Strategic Targets
Strategic Targets 5-Year Actual QE QE Strategic Metrics 2015 _ 3/31/16 Target Range Net interest margin (FTE) 3.53% 3.53% 3.57% 3.60% to 380% [o/h Tau] Total revenue growth @) 32.40% 9.02% 1.50% 5% to 8% (heer) Total expense growth @) 35.38% — -14.59% 3.39% 3% to 6% LES 72 <2] Non-inter est incometo
Slide 23: Strategic Capabilities
Strategic Capabilities) (Online Rinancial Management ACH, Wires Stop Parments Positive Pay Dax Service: POP Paments (Online Chat Text At Bill Pay-Specific to Motile Phone/iPad/Andsiod Apps Banking jepost Capabilities Prepaid Debit Card Prepaid Gift Card Empl od Pay Cards Indicates Peoples Ins aduama
Slide 24: 2016 Performance Outlook
2016 Performance Outlook BANCORP® /Peop plese)
Slide 25: 2016 Outlook
2016 Outlook a * Maintain core efficiency ratio in the 65% range — Expenses met quarterly run rate target of $26.5 million in Q2 providing a ratio of 65.08%, and an adjusted ratio of 64.85% — Targeting core efficiency ratio to remain in the 65% range for the year, driven primarily by continuation of
Slide 26: 2016 Outlook
2016 Outlook ‘ay * 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 — Pnmarily focused on insurance and investment opportunities in 2016
Slide 27: Appendix
Appendix
Slide 28: Quarterly Financial Metrics
Quarterly Financial 2Q 3Q 4Q 1Q 2Q Metrics 2015 2015 2015 2016 2016 Diluted EPS $0.27 $0.22 $0.14 $0.44 $0.44 Return on common equity 4.69% 3.89% 2.42% 7.59% —_7.45%| yer Return on assets 0.61% 0.51% 0.32% 0.98% 0.97% EMMI Pre-provision net revenue to assets) 0.99% 1.40% 1.31% 1.54% 1.48% PS TSS Not
Slide 29: Key Drivers of Shareholder Value
Key Drivers of Shareh LTMRevenue Growtl NPAstoLoans and OREO Gromh largely attributable toNB&T acquisition LTM Fee Revenue to Dividend Yield Average Assets PEBO Peers $1-5B PEBO Peers $1-5B Pears include: SRCE, CHCO, CONE, CBU, CTI, FFKT.FHNE, FIs), FOEF.FFBC, THFF,FRME, GABC, HENC. LKFN, SFG. PRK,
Slide 30: Non-GAAP Measures
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 31: Non-GAAP Measures
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 32: Non-GAAP Measures
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 33: Non-GAAP Measures
Non-GAAP Measures CORE Nt INTEREST <PEN} Core non-interest expenses are non-GAAP since they exclude the impact of acquisition related costs, pension settlement charges, severance charges, search firma fees and legal settlement charges. (Sin Thousands) Q22014 32014 Q42014——QL-2015 Total non-interest
Slide 34: Non-GAAP Measures
Non-GAAP Measures The adjusted efficiency ratio is a key financial measure used to monitor performance. The adjusted efficiency ratio is calculated as core no interest expense (less intangible amortization) as a percentage of ful y tax-equivalent net interest income plus non-interest income. This me
Slide 35: Non-GAAP Measures
Non-GAAP Measures ‘ay The adjusted efficiency ratio is a key financial measure used to monitor performance. The adjusted efficiency ratio is calculated as core non-inter est expense (less intangible amortization) as a percentage of fully tax-equivalent net interest income plus non-interest income. T
Slide 36: 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 the calculations exclude the impact of intangible assets acquired through acquisitions on both total stockholders’ equity
Slide 37: Peoples Bancorp 2nd Quarter 2016
y Peoples ¢), Nasdaq: PEBO Investor Presentation 2>4 Quarter 2016