Peoples Bancorp Inc. · NASDAQ:PEBO
Peoples Bancorp — Investor Presentation (February 2018)
22 slides from Peoples Bancorp's investor presentation, Feb 28, 2018
Slide 1: Investor Presentation 4th Quarter 2017
Peoples () Investor Presentation 4‘ Quarter 2017 Filed by Peoples Bancorp Inc. Pursuant to Rule 425 under the Securities Act of 1933 and deemed filed pursuant to Rule 14a-12 under the Securities Exchange Act of 1934 Issuing Company: Peoples Bancorp Inc. Registration Statement on Form S-4 File No. 33
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. Peoples filed a registration statement on Form S-4 and a proxy statement/prospectus that was mailed to the shareholders of ASB Financial Corp. (“ASB”) on or
Slide 3: Profile and Investment Rationale: Corporate Profile
Profile and Investment Rationale A Peoples ¢ —_——— BANCORP® Corporate Profile * Financial holding company headquartered in Marietta, Ohio. — Provides a broad range of banking, insurance, and investment services * Current snapshot: — Assets: $3.6 billion; Loans: $2.4 billion — Deposits: $2.7 billion
Slide 4: Investment Rationale
Investment Rationale (ay * Unique community banking model — Greater revenue diversity (31% fee-based) than the average $1 - 10 billion bank — Strong community reputation and active involvement — Local market teams capable of outmaneuvering larger banks — More sophistication and product breadth than
Slide 5: ASB Financial Corp Transaction
ASB Financial Corp Transaction a AMERICAN |. ASB Financial Corp (OTC Pink: ASBN) SAVINGS SAVINGS $& BANK, fs BANK, fsb Deal announced on October 24, 2017 Six full-service bank branches in the Portsmouth and Cincinnati, Ohio Transaction Summary regions, and two loan Deal Value: $89.6 million 158% of
Slide 6: Strategic Road Map
Strategic Road Map “Best Community Bank in America” * Commitmentto Superior Shareholder Returns * Great Place to Work Our Way of Life * Broad Delivery Channels * Delightthe Customer Advice / Solutions * DWYSYWD * Relationship Reviews, news / VIP Calls; Value Added * Great Place to Bank ‘ay ~ * Meani
Slide 7: Strategic Targets
Strategic Targets YID Metrics 12/31/16 YID 12/31/17 Status as of 12/31/17 5-Year Strategic Target Range * NPAs asa percent of total loans and OREO (1) 1.16% 0.74% 0.70% to 1.00% v Improve Asset Quality Net charge-offs as a percent of average total loans (2) 0.09% 0.15% 0.30% to 0.50% 4 Loans to tota
Slide 8: Peoples Market Insight
Peoples Market Insight * 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, Cincinnati and Columbus) a ‘Total Deposits in M
Slide 9: Fourth Quarter 2017 Highlights
Fourth Quarter 2017 Highlights a * Reported fourth quarter earnings of $9.0 million Grew loans by 6% compared to December 31, 2016, with strong performance in both commercial and consumer indirect lending Grew deposits by 9% compared to December 31, 2016, with strong performance in DDAs, which incre
Slide 10: Total Revenue Growth
Total Revenue Growth 996 increase in total revenue from Q1-16to Q4-17 $40,000 $35,000 $30,000 $25,000 $20,000 (thousands) Not to scale $15,000 $10,000 + Q1-16 Q2-16 Q3-16 Q416 Q1-17 Q217 Q3-17 Q417 mNet Interest Income m Fee-Based Income 7} Peoples () BANCORP: Core Non-Interest Expense * Eight conse
Slide 11: 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, operating leverage was operating leverage has been positive for seven positive for fiscal yea
Slide 12: Improvement in Key Metrics
Improvement in Key Metrics Peoples’ focus on steadily growing loans and deposits, managing expenses, and increasing operating leverage has resulted in improvementin key financial metrics. 1.10% 12.95% 13.33% 1.10% Tie Ase i 09%" 1 88% 1.009% 0.94% 12.00% 0.90% —%4 = L | | 11.00% t = 0.805% -—— 10.00
Slide 13: Asset Quality
AssetQualiy $50,000 $45,000 $40,000 $35,000 $30,000 $25,000 $20,000 $15,000 $10,000 $5,000 Criticized and Classified loan levels remain reasonably stable | 38.2% _ ao-3%6 SLI 7/0 30.4% 29.9% 30.1% y == 18.4% 16.2% 16.5% 74% 16.8% 46 joy Q116 8 Q216 Q316 Q416 QLI7 Q217) Q317) Q417 mmm Nonaccrual Loan
Slide 14: Total Loan Growth
Total Loan Growth a $2,400 $2,850 ($millions) Not to scale Total loans were up 6% over December 31, 2016 $2,300 $2,250 $2,200 $2,357 $2294 $2,327 $2,150 $2,100 $2,050 $2,000 Q416 QLl7 Q3-17 Q417 @, Total deposits were up 9% over December 31, 2016 Demand deposit accounts (DDAs) represented 42% of tot
Slide 15: Earning Asset Mix; Prudent Use of Capital
Earning Asset Mix ‘ay Since 2018, the percentage of earning assets composed of investments has decreased, while the percentage composed of loans has increased. $3,500,000 80% 2% 73% $3,000,000 + + 70% $2,500,000 60% $2,000,000 50% $1,500,000 40% $1,000,000 + 30% $500,000 + $- 20% FY-13 FY-14 FY-15 F
Slide 16: CRE Concentration Analysis
CRE Concentration Analysis é * CRE exposure is well below supervisory criteria established to identify institutions with heightened CRE concentration risk — Exposure levels also compare favorably to peer institution concentration levels — Concentration levels have improved relative to peers on a lin
Slide 17: Business Highlights
Business Highlights ‘ay ¢ Commercial Banking — Average loans up 10% and average deposits up 6% from 2016 — $25 million lending “house limit” although legal limitis over $40 million * Retail Banking — Indirect loans grew by $88 million, or 35%, since December 31, 2016 — DDA accounts at 43% of total d
Slide 18: Appendix
Appendix ‘Peoples @) BANCORP 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-based income m
Slide 19: Non-GAAP Measures
Non-GAAP Measures CORE FEE-BASEDINCOME 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) Fy-15 FY-16 FY17 Total fee-based income $ 47441 $ 5
Slide 20: Non-GAAP Measures: Efficiency Ratio
Non-GAAP Measures EFFICIENCY RATIO 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 of fully tax-equivalent net interest income plus total fee-b
Slide 21: Non-GAAP Measures: Tangible Equity Ratios
Non-GAAP Measures TANGIBLE EQUITY RATIOS Peoples uses tangible capital measures to evaluate the adequacy of Peoples’ stockholders’ equity. Such ratios represent non- GAAP financial measures since the calculation removes the impact of goodwill and other intangible assets acquired through acquisitions
Slide 22: Non-GAAP Measures: Return on Average Tangible Equity
Non-GAAP Measures RETURN ON AVERAGE TANGIBLE STOCKHOLDERS’ EQUITY 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 tan
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