Peoples Bancorp Inc. · NASDAQ:PEBO
Peoples Bancorp — Raymond James 2014 U.S. Bank Conference
29 slides from Peoples Bancorp's conference presentation, Sep 2, 2014
Slide 1: Investor Presentation – Raymond James 2014 U.S. Bank Conference
V’ Peoples Nasdaq: PEBO Investor Presentation Raymond James 2014 U.S. Bank Conference September 3, 2014 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
Slide 2: Additional Information
Additional Information 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, or will file, registration statements on Form $4 and other documents regarding the proposed merger transactions re
Slide 3: Overview – Corporate Profile
Overview / Peop Corporate Profile * Financial holding company headquartered in Marietta, Ohio, — Provide a broad range of banking, insurance, and investment services * Current snapshot: — Assets: $2.2 billion* — Loans: $1.3 billion* — Deposits: $1.7 billion* — Market capitalization: $320 million — A
Slide 4: Key Accomplishments
Key Accomplishments ‘ay * Building greater bottom-line earnmgs momentum — Earnings improved in the second half of 2013; Q4 EPS up 32% year-over-year — Solid performance in first half 2014 with meaningful contributions across the company ¢ Growing top-line revenue while remaining disciplined with exp
Slide 5: Investment Rationale
vestment Rationale ‘ay Unique community banking model — Greater revenue diversity for a community bank our size (approx. 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: Loan and Deposit Composition
Loan and Deposit Composition © Loan Portfolio Deposit Residennal Real Estate 23.896 Deposit Portfolio Data as of June 30, 2014 Executive Managementdlicaml Years in Banking PEBO}| Total Chuck W. Sulerzyski Diverse financial services experience President and CEO Progressive exeaitive leadership 8 88 E
Slide 7: Recent Acquisition Activity
Recent Acquisition Activity /Peop ples ——— BANCORP® h Recent Acquisitions October 2013 Ohio Commerce Bank Single office in Beachwood eee Total assets = $123 million io Heritage Bancorp Six offices headquartered in Coshocton. Total assets = $248 million May 2013 Jackson Insurance Brokerage/ 7 ‘Freedo
Slide 8: Ohio Heritage Bancorp Transaction
Ohio Heritage Bancorp dimansachion ay ann Ohio Heritage Bancorp, Inc. (OTCQB: OHHB) OHIO HERITAGE BANCORP Ohio Heritage Bank * Deal announced on April 4, 2014 and closed August 22, 2014 * Single bank holding company & bank organized in 1995 ¢ Six banking offices in Ohio — Coshocton (2 locations); Ne
Slide 9: North Akron Savings Bank
NORTH AKRON SAVINGS BANK (Private) oes = / (a * Deal announced on Apmil 21, 9014 * Single bank with no holding company founded in 1921 * Four banking offices in NE Ohio — Akron, Munroe Falls, Cuyahoga Falls and Norton Institution Deposits Market Rank (# of branches) ($000's) _ Share 1 FirstMerit (29
Slide 10: 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 11: M&A Integration Plan
M&A Integration Plan Busy but manageable process NB&T | ont a NASB a a NBT ae Top 4 operations / systems professionals have over 100 years experience at PEBO === 7} Peoples (¢) 7 —— sancore Current Strategic Priorities /’Peop Peoples ()
Slide 12: Our Strategic Road Map
Our Strategic Road! Map © “The Best Community Bank in America” Re sponsbl Extraordinary Superior Profitable R Growth Risk inher Client Experience + Execution Risk + Delight the customer! Share the WOW moments + Professional, caring associates consistently & solutions + Products& services delivered t
Slide 13: Business Line Focus
Business Line Focus @ Core Banking Activities Lending Activities Deposit Generation ¢ Profitable portfolio growth ¢ Emphasis on core deposits — Focus on risk versus reward — Checking and savings accounts — Maintain pricing discipline —Non-IB deposits over 20% of total * Create greater diversity ¢ De
Slide 14: 5-Year Strategic Metrics
5-Year Strategic Actual Actual Actual Strategic Focus Metrics 2012 2013 Q22014 Target Range Net interest margin Fully-tax equivalent) 3.39% 3.25% 3.39% 3.40% to 3.60% Positive Totalrevenue growth 2.90% 3.53% 15.20% 5% to 11% Operating Total expense growth 3.49% 7.55% 21.81% 3% to 8% Leverage Non-int
Slide 15: Target Growth Areas
Target Growth Areas + Recently addednew talent Yi eo et Footprint Development + Increase market share in all areas >» * Insurance & Wealth Management ¢xpansion potential Customers and Markets [fy aa \ Peoples ()
Slide 16: Shale Activity and Our Capabilities
Total gas, mions of cubic fet per square mite _— Marcetus Saale ‘googie formation 0-58 s8- 149 150-340 309-710 | ee Bh 205-2480 ¢ Key driver of stronger economic activity — Land owners acquiringwealth from selling/leasing mineral nghts — Hospitality sector benefiting from nonresident workers — Local
Slide 17: Our Brand Promise
Our Brand Promise ‘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 execute thoughtful plans and actions, blending our experience & expertise to move you toward your financial goals. Our core difference is provi
Slide 18: Refreshed Our Branches
Refreshed Our Branches ¢ 18-month, 5-phase project ms — Floor-to-ceiling renovations — Over $5 million 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 custome
Slide 19: Annual Financial Summary
Annual Financial Summa, © FY FY FY FY 2009 2010 2011 2012 392013 Diluted EPS $0.22 $0.34 $1.07 $1.92 $1.63 Metrics Return on common equity 1.17% 1.76% 5.61% 9.52% 7.92% Financial Return on assets 0.21% 0.28% 0.69% 1.11% 0.91% eeMMUenaA Net interest margin (FTE) 3.48% 3.51% 3.43% 3.39% 3.25% Efficien
Slide 20: Key Performance Drivers
Key Performance Drivers © Q22013 §=Q3 2013 «=Q442013. SQ1 2014 «= 4.22014 Classified Assets Ratio (1) Reveme Growth (2) Efficiency Ratio Loan Growth (3) f i 10.1% 5.9% 3.9% Pre-Provision Net Revenue to 1.25% 1.26% 1.29% 1.38% 1.11% Average Assets (4) (1) Substandard loans, OREO, classifiedinvestment
Slide 21: Peer Comparison – Returns to Shareholders
rs of Shareholder 2.16% 1.86% 0.93% — Peers << ziltte Average Assets —_ Madea Payout eset Yield 31.39% 1.95% 23.82% Peers PEBO _Peers $1-5B Peers Peers include: BKYF, CCNE, CHCO, CNND, CTBI, FEMI, FOEF, FISI, FMNB, FRME,GABC, HBNC, ISBA, LKFN, LNBB, MSFG, SRCE, STBA, SYBT, THFF,TMP. — = a 41-58 peer
Slide 22: Annual and Quarterly Results
Annual Results @ Earnings per common share $1.74 @ Cash dividends declared per common share| $194 $2.01 $1.92 $1.63 $1.07 2005 2006 2007 2008 2009 2010 2011 2012 2013 Quarterly Results $0.47 $0.47 $0.47 $0.36 $032 Q22012 = Q32012 42012 12013 Q22013 = Q3 2013 242013 = 12014 Q2 2014 ‘Peoples Q2 Q3 Qt
Slide 23: Net Interest Margin and Non-Interest Income
Net Interest Margi 481% 466% 4.64% a SS 435% : aim 424% 4.07% 3.93% 3.92% 3.43% 339% 349% 3.410, 3.43% 3.42% 346% 350, 3.39% 1.63% 0.89% 89% 0.85% 080% 0.76% 9.72% — Q22011 Q32011 Q42011 Q12012 Q22012 Q32012 Q42012 Q12013 Q22013 Q32013 Q42013 Q12014 Q22014 —*-Earning Assets —*—Net Interest Margin —#
Slide 24: Revenue, Expenses and Balance Sheet Trends
Revenue & Expen C Brericl 7 - 351% 348% 351% 3.43% 3.39% 3.29% 36 3.25% ns $33.6 aoe 2006 2007 2008 2009 2010 2011 2012 2013 @Net interest income @Non-interest income —e=Net interest margin Operating Expenses — gare 71.90% 57.51% 577% 56.30% sill SS $68.3 $51.3 2006 2007 2008 2009 2010 2011 2012 201
Slide 25: Loan Composition
Loan Composition YE2008 | YE2009 | YE2010 | YF2011 | YE2012 | Q22013 | Q32013 | Q42013 | Q12014 | Q22014 GRetail) $397,650 | $383,326 $353,882 | $356,720 | $392,703 | $425,197 | $450,005 | $465,771 | $478,662 | $544,636 GCI | $176,187 | $160,678 | $153,713 | $140,857 | $180,131 | $184,981 | $192,238
Slide 26: Deposit Composition and Capital Trends
a) Deposit Composition ($ in thousands, YE YE YE YE 2008 | 2009 | 2010 | 2011 W Checking & Savings $376,845 | $437,623 | $431,148 | $484,453 | $625,357 | $650,503 | $677,026 | $760,311 Public Funds $105,714 | $112,074 | $122,444 | $122,916 | $130,630 | $146,817 | $151,910 GMMDs | $213,498 | $263,257
Slide 27: Appendix – Non-GAAP Measures
Appendix 4 \ Non-GAAP Measures ‘Peoples a @ Pres RE-PROVISION NET REVE! 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 capa
Slide 28: 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 29: 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 shee
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