Peoples, Ltd. · OTC:PPLL
Peoples — Merger or Acquisition (July 2004)
13 slides from Peoples's merger presentation, Jul 15, 2004
Slide 1: Acquisition of Heritage Financial Holding Corporation
www.phcfc.com following presentation on it’s website: On July 15, 2004, The Peoples Holding Company made available the Acquisition of July 2004
Slide 2: Forward-Looking Statements
Forward-Looking Statements the the In in consider from increase 1995. regulatory regarding “forward-looking following of should materially or may deterioration Act you a statements are company differ operate Reform to among others, the following shareholder institutions things, expressions, results
Slide 3: Forward-Looking Statements (continued)
Forward-Looking Statements forward- differ and Current Peoples, any to update such Peoples’ and to to on results in 10-Q reliance found Form attributable obligation Heritage’s be on and can any undue and Reports matters put to Peoples’ statements other undertake not not Quarterly or cause do caution
Slide 4: Transaction Overview
for the twelve months ended 12/31/05, per Heritage management. Based on a hypothetical 60% stock / 40% cash election and Peoples’ closing price of $32.80 on 7/14/04. Includes dilutive impact of outstanding options using the treasury method, assumes options roll over. Based on Heritage’s projected GA
Slide 5: Strategic Rationale
Strategic Rationale existing franchise Huntsville / Birmingham target markets for Peoples Complements Peoples’ Allows for expansion into new, demographically attractive markets Accretive to both GAAP EPS and EPS excluding intangible amortization and fair market value adjustments within 12 months Opp
Slide 6: Financial and company comparison
Source: SNL Financial and Company filings. Dollars in thousands. Data as of or for the three months ended 3/31/04. Capital ratios bank level.
Slide 7: Peoples' pro forma data
Peoples’ data pro forma for acquisition of Renasant Bancshares, Inc. Does not include mortgage loans held for sale. (1) (2)
Slide 8: Pro Forma Franchise
Pro Forma Franchise MARKET DEMOGRAPHICS Projected Change in Median Household Income 2003-2008 (%) Source: SNL Financial. Deposit data as of 6/30/03. Population and median household income are deposit weighted by county.
Slide 9: Financial Assumptions
Financial Assumptions 2005 GAAP EPS estimate of $2.50 per First Call Grown at 8.0% thereafter eritage Earnings: 2005 and 2006 estimates of $4.0 million and $6.1 million, respectively nnual expense savings of approximately $1 million after-tax (approximately 9% of Heritage’s Consideration mix and exc
Slide 10: GAAP EPS Impact
GAAP EPS Impact (Thousands Except per Share) 2006E. Peoples GAAP EPS Estimates $2.50 $2.70 Heritage GAAP EPS Estimates 0.38 057 Peoples GAAP Net Income $21,739 $24,783 Heritage GAAP Net Income 4.000 6.066 After-Tax Interest Expense (1.278) (1,278) After-Tax Amortization of FMV Adjustments 1,151 942
Slide 11: EPS Excluding Intangible Amortization and Fair Market Value Adjustments
EPS Excluding Intangible Amortization and Fair Market Value Adjustments * Excluding all intangible amortization ** Excluding all intangible amortization and fair market value adjustments
Slide 12: Projected net income and adjustments
The following table presents projected net income for the periods as well as adjustments for the exclusion of core deposit intangible amortization, other intangibles amortization and fair market value adjustments * Merger adjustments assume January 2005 deal close.
Slide 13: Summary
Summary Opportunity to expand in growing markets Complementary business cultures Financially attractive Low risk integration