Peoples Bancorp Inc. · NASDAQ:PEBO
Peoples Bancorp — Investor Presentation (June 2011)
38 slides from Peoples Bancorp's investor presentation, Jun 15, 2011
Slide 1: Peoples Bancorp Investor Presentation June 2011
Peoples Bancorp Nasdaq: PEBO Investor Presentation June 2011 Chuck Sulerzyski Ed Sloane President and Chief Financial Officer Chief Executive Officer and Treasurer
Slide 2: Safe Harbor Statement
jiscorsied 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 Litigatio
Slide 3: Strategic Priorities
[scarce Strategic Priorities FIX ¢ Full focus on asset quality me ¢ Position for TARP return ¢ Enhance marketing and brand awareness ¢ Build sales force & sales management discipline 310010 0eee ° Improve balance sheet mix IT ¢ Retool distribution system ¢ Explore M&A opportunities (insurance) ¢ Sea
Slide 4: Discussion Points
[scarce Discussion Points ¢ Background ¢ Credit — Is it fixed? ¢ Growth — How will we grow? ¢ Summary
Slide 5: Background
Peoples Bancorp Background
Slide 6: Corporate Profile
jiscorsied Corporate Profile ¢ Financial holding company headquartered in Marietta, Ohio. — Provide a broad range of banking, insurance, and investment services ¢ Current snapshot: — Assets: $1.8 billion — Loans: $948 million — Deposits: $1.4 million — Market capitalization: $130 million — Over 125,
Slide 7: Recent Financial Summary
VY, jiscorsied Recent Financial Summary 1Q noi1 422010 1Q2010 Diluted EPS $0.13 $0.01 $0.08 INnentariae Return on common equity 2.83% 0.11% 1.58% iwououiciaa Net interest margin (Fully-tax equivalent) 3.43% 3.44% 3.52% Efficiency 65.21% 62.14% 60.07% Tier 1 common equity 11.72% 11.59% 10.60% Tier 1
Slide 8: Balance Sheet Trends
jiscorsied Balance Sheet Trends (8 in millions) Earning Assets $1,117.9. $1,105.2 $1,081.1 . 1,024.8 $1,024.7 $988.9 $983.7 we one $763.7 $767.0 $747.2 $710.0 $682.4 $687.6 $664.5 ($567.4 2006 2007 2008 2009 Q1 2010 2 2010 Q3 2010 04 2010 Qt 2011 aNet Loans Total Investments Funding Sources 2006 200
Slide 9: Revenue & Expense Trends
jiscorsied Revenue & Expense Trends (Sin millions) Operating Revenues 351% 351% 3.48% ee + 3.43% sae ee sre — _ 2006 2007 2008 2009 2010 2011+ B Net interest income D Non interest income —e—Net interest margin Operating Expenses 2006 2007 2008 2009 2010 2011+ Salary & Benefits 1D Other operating exp
Slide 10: Capital Trends
jiscorsied Capital Trends (8 in millions) 17.44% 17.55% 18.24% = _— 16.80% 16.83% 16.60% —— 13.17% 13.23% 13.19% 11.72% 0 0 11.07% 11.13% 980% 10.18% 10.17% WEED WOES 7.10% 7AL% 722% 707% 7.18% 7.16% 7.17% 7.36% 6.21% ‘YE2006 YE2007 ‘YE2008 YE 2009 Qi2010 = Q22010 3201042010 2011 —e Total Capital Ra
Slide 11: Credit
Mpark ne Credit
Slide 12: Recent Events
jiscorsied Recent Events ¢ OCC examination during Q4 2010 — Did not result in any downgrades ¢ Partial TARP repayment in Q1 2011 — Completed without capital raise — Indication credit issues are stabilizing ¢ Renewed emphasis on credit basics — Enhancing talent against task — CEO managing credit risk
Slide 13: Asset Quality Trends
Bancorp Asset Quality Trends (Sin millions) Nonperforming A: 4.6496 400% 3.8586 3.85% $40.7 M34 $41.6 $359 $368 aaz09 12010 22010 mm | E2OID GLAD 4703 | 12010 | a22010 | wom | ez Lat DProisimferlomleses — ONet charges ALLL ioLem ONPLs caOREO NPAs HeLons + ORD Allowance for Loan Lo: 89.0096 crn ARM a
Slide 14: Back to Basics
jiscorsied Back to Basics ¢ Increased monitoring activities — Standardized tracking report for criticized assets — Requiring written workout plans for each problem loan ¢ Enhanced credit risk management function — Formalized Loan Quality Committee — Created a Special Assets group ¢ Refined loan unde
Slide 15: Looking Ahead
jiscorsied Looking Ahead ¢ Aggressive resolution of problem loans — Quarterly monitoring of workout plans — Focused on changes in migration trends ¢ Expand Special Assets group — Adding a special assets manager/officer ¢ Restructure commercial lending function — Deploy a “finders”, “minders” and “gr
Slide 16: Growth
Mpark ne Growth
Slide 17: Our Differentiators
Peoples Bancorp Our Differentiators ¢ Community banking model — Parity in products and delivery channels — More nimble and responsive to market needs — Positive community stature and involvement Sound financial fundamentals — Strong capital and liquidity positions — Diversified revenue stream — Good
Slide 18: Key Strategic Targets
jiscorsied Key Strategic Targets 5-Year Actual 1Q 2011 Target Range Strategic Focus Improv NPAs to total loans + OREO 3.85% 0.80% to 1.00% FORGE Net charge-offs to average loans 321% 0.50% to 1.00% FURR PRE Loans to total assets 52.62% 60% t0 6500 Sheet Mix Deposits to total funding 36.26% 85% to 90
Slide 19: Focus on Business Lines
) jiscorsied Focus on Business Lines Retail Banking Commercial Banking ¢ Product Enhancements — Power checking « Increase production levels ¢ Build stronger sales force « Add producers in growth markets « Expand talent in growth markets ¢ Develop niche lending programs ¢ Branch rationalization/effic
Slide 20: Focus on Business Lines: Sales and Service Discipline
Peoples . : Bancorp Focus on Business Lines Sales and Service Discipline Defi S, Mea: i Re ‘ he G Trai a Coac an the mer Com 20
Slide 21: Recent Franchise Activity
[as ere = Recent Franchise Activity Opened new banking office in Lancaster, Ohio Introduced new checking product lineup
Slide 22: Recent Franchise Activity
[as ere = Recent Franchise Activity Increased visibility through social media channels... Expanded mobile banking www.facebook.com/PeoplesBank to include www.twitter.com/P eoplesBank a Enhanced Online Banking Services... iPhone Banking Access User 0: plus text messaging banking! New Website with Onl
Slide 23: Asset Allocation Trend
jiscorsied Asset Allocation Trend ans and Investments 38% 20% to 30% 29% 60% to 65% 60% i; ; | : ; H 2006 2007 2008 2009 2010 Projected 2011 Strategic Plan Goal GCRE acal GRetail —— Investments Strategic Plan Goal data represents target range at the end of the S-year plan period. 23
Slide 24: Funding Allocation Trends
jiscorsied Funding Allocation Trends Deposits and Borrowings 33% 20% ATT 2006 2007 2008 2009 2010 Projected 2011 Strategic Plan Goal G Retail CDs OMMDs B Checking & Savings —e Wholesale funding 10% to 20% Strategic Plan Goal data represents target range at the end of the S-year plan period. 24
Slide 25: Revenue & Expense Trend
V jiscorsied Revenue & Expense Trend Operating Leverage 65.21% 60.14% 60.30% ; 57% to 57.51% 57.07% 56.30% Gas 2006 2007 2008 2009 2010 Projected Strategic Plan Hi Net interest income Non-interest income em Emicieisy rats 2011. ne COM! Strategic Plan Goal data represents target range at the end of t
Slide 26: Market Growth Opportunities
jiscorsied Market Growth Opportunities Central Ohi + High growth potential + Recently added new talent ‘Morgantown Potential + Minimal community banks + Nearly 30,000 people Footprint Development * Increase market share in all areas * Possible M&A opportunities * Insurance & Wealth Management expans
Slide 27: Summary
Peoples [scarce Summary * Cure credit issues * Return remaining TARP ¢ Disciplined management approach ¢ Pursue prudent growth 27
Slide 28: Questions?
Peoples Bancorp Nasdaq: PEBO Questions? Chuck Sulerzyski Ed Sloane President and Chief Financial Officer Chief Executive Officer and Treasurer
Slide 29: Appendix
Mpark ne Appendix
Slide 30: Stock Performance
Stock Performance Total Returns 24% G Peoples Bancorp O SPX 500 Index @ NASDAQ Bank Index O Peer Group Peer Group data is comprised of the 22 publicly-traded financial institution holding companies more fully defined in Peoples’ definitive proxy materials for the 2011 Annual Meeting of Shareholders.
Slide 31: Earnings Performance
jiscorsied Earnings Performance Annual Results $1.94 oe $1.74 2004 2005 2006 2007 2008 2009 2010 Earnings per common share Gi Cash dividends declared per common share Quarterly Results $0.27 $0.13 $0.08 $0.10 $0.10 $0.10 $0.10 $0.10 se.01] $0.01 Q12010 2.2010 3 2010 Q4 2010 Q1 2011
Slide 32: Pre-Tax, Pre-Provision Income
jiscorsied Pre-Tax, Pre-Provision Income 2006 2007 2008 2009 2010 Q12010 Q42010 Q1 2011 Income before income taxes $ 29,423 $ 23,874 $ 7,615 $ 3,126 $ 5,753 $ 1,426 $ 88 $ 2360 Add: Provision for loan losses 3,622 «3,959 -27,640 «25,721 «26,916 6,501 6,952 5311 Add: Intangbile amortization 2,261 1,9
Slide 33: Net Interest Margin
jiscorsied Net Interest Margin 592% 3.52% 3.45% 3.45% 3.50% 3.52% 3.49% aoe 3.43% Q1.2009 Q2 2009 Q3 2009 Q4 2009 Q12010 Q2 2010 Q3 2010 Q4 2010 Q12011 “a Earning Assets —o—Net Interest Margin — Interest Bearing liabilities 33 Presented on a fulh valent b
Slide 34: Non-Interest Income
Bane i Non-Interest Income (Sin thousands) $32,097 $32,050 ' ; 1 1 1 2006 2007 2008 2009 2010 2011* D oter $3,288 $3,252 $3,087 $3,504 $3,173 $3,288 DV E-Banking $3,080 $3,524 $3,882 $3,954 $4,686 $4,884 BH Trust & investment $4,258 $4,983 $5,139 $4,722 $5,348 $5,300 D Insurance $9,538 $9,701 $9,902
Slide 35: Regulatory Capital
V, jiscorsied Regulatory Capital Net $1,348 susie Risk-Weighted $1,301 $1,246 $1,245 Assets 123 gam (Sin millions) $1,150 $1,143 $209,144 $209,647 8211509 srin.z6g _ $209,738 $189,672 S782 siTa.a70 Total Regulator Capital (8 in thousands) ‘YE2008 ‘YE 2000 ‘12010 ‘@m10 42010 qm faTaRP $0 $39,000 $390
Slide 36: Asset Quality Trends
Banter Asset Quality Trends (Sin millions) —-NPAsto Total Assets —= Net Charge-off'sto Avg Loans 2.66% Total Credit Losses BLoans OREO investments ase 0.43% 037% 053% t + - =e 030% 0.25% 0.21% al 0.25% 2003 2004 2005 006 2007 moe 009 2010 $161 179% 2009 209 i200 e200 m0 2010 2011 36
Slide 37: Non-GAAP Measures
Peoples Bancorp Non-GAAP Measures (Sin thousands) 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
Slide 38: Peoples Bancorp
Peoples Bancorp Nasdaq: PEBO Investor Presentation June 2011 Chuck Sulerzyski Ed Sloane President and Chief Financial Officer Chief Executive Officer and Treasurer