Peoples Bancorp Inc. · NASDAQ:PEBO
Peoples Bancorp — Q1 2015 Earnings Presentation
28 slides from Peoples Bancorp's earnings presentation, May 6, 2015
Slide 1: Investor Presentation 1st Quarter 2015
y Peoples ¢), Nasdaq: PEBO Investor Presentation 1 Quarter 2015
Slide 2: Harbor Statement
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 Litigation Reform Act of
Slide 3: Financial holding company headquartered in Marietta, Ohio
* Financial holding company headquartered in Marietta, Ohio, — Provide a broad range of banking, insurance, and investment services * Current snapshot — Assets: $3.2 billion — Loans: $2.0 billion — Deposits: $2.6 billion — Market capitalization: $430 million — Assets under Management: $1.8 billion *
Slide 4: Investment Rationale
Investment Rationale € * Unique community banking model — Greater revenue diversity for a community bank our size (80% to 8.5% fee-based) — Strong community reputation and active involvement — Local market teams capable of outmaneuvering larger banks — More sophistication and product breadth than sm
Slide 5: 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 Excellent Financial Results and Shareholder Return . “Best Community Bankin America” Great Place to Bank + Meaningful
Slide 6: 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 efficiency ratio below 65% y . < Superior * Balance growth with prudent credit practices Asset ¢ Improve diversity wi
Slide 7: Long-term financial performance targets
Net interest margin Fully-tax equivalent) 3.60% to 3.80% Totalrevenue growth Total expense growth Non-interest income to total revenue Efficiency NPAs to total loans + OREO 0.70% to 1.00% Net charge-offs to average loans (1) 30% to 0.50% Loans to total assets if Deposits to total funding S Tier 1 ca
Slide 8: NB&T Financial Group Inc.
Ht 5 NationalBank NB&T Financial Group Inc. © aN Trust company (NASDAQ:NBTF) * Deal announcedon August 4,2014and Transaction rationale: closed / converted on March 6, 2015 — Market expansion to southwest, Ohio * , (Cincinnati / Dayton) market place 7 y * 22 officesin SW Ohio = Hired Ed Reilly, forme
Slide 9: FREE MOVIE SAT 74)
FREE MOVIE SAT 74) ETE DAY Show fa O92 Downtown Coshocton Batavia Oftee Wn ctor
Slide 10: Digital banking capabilities comparison with peers
PEOPLES PwASeerts City Community Wes Park United, ‘Hurtington Naiond Trust Nation — Bank Online Loan Appiicaions No nine Financial Managemect Yer | ACH, Wires Stop Payments Yes es Yer No No Yer ll Par Specific to Motile Yes | ves | ve | ves | Yes Yes Ye [ Ye | ve | We | ves /iPhone/iPad/Andriod Apps
Slide 11: Data as of March 31, 2015
‘Data as of March 31, 2015
Slide 12: Trailing months revenue from March 31, 2015
‘Trailing 12 Months Reverme from March 31, 2015 Zi —_—— \ 12
Slide 13: Our Businesses
Our Businesses * Commercial Banking — 12% organic commercial loan growth in 2014; exceeded expectations — Expanding pipeline expected to drive 8% to 10% growth in 2015 — Legal lending limit over $40 million with NB&T * Retail Banking — 4.5% checking account growth; 27% DDA to total deposits — $37 mi
Slide 14: Footprint Expansion
‘a L777 nsion * Bank opportmities + Wealth management and insurance opportunities + Shale oil / gas activity Southwest Olio + Wealth management or insurance opportunities to complement NB&T. + Attractive growth and market dynamics Footprint Development + Increase market share in all areas rT * Insur
Slide 15: Floor-to-ceiling renovations
— Floor-to-ceiling renovations — Completed renovations of our Midwest and Ohio Heritage branches; North Akron is im process — NB&T branch refresh will be phased im dunng 2015 — Used national branch design experts — All delivery channels “Best in Class” — Consistent look with our new brand — More eng
Slide 16: 2015 Outlook
2015 Outlook * Target efficiency ratio below 65% for second half of 2015 — Expect full phase-in of cost savings from NB&T during the second quarter — Improve core efficiency in each business line Effective balance sheet management — Reduce relative size of the investment portfolio to 25% of total as
Slide 17: Our M&A Strategy
Our M&A Strategy, * Optimize our current footprint — Gain market share and improve operating effiaency — Create more density through cdisaplined expansion Target areas with characteristics similar to existing markets — Expand along major transportation routes — Focused on “mid-major” communities or
Slide 18: Appendix
Appendix
Slide 19: Diluted EPS and key annual metrics
$1.92 $1.63 $1.35 Diluted EPS Return on common equity 9.52% 7.92% 6.16% Return on assets 1.11% 0.91% 0.74% F Pre-provision net revenue to assets (1) 1.41% 1.26% 1.10% Net interest margin (FTE) 3.39% 3.23% 3.45% §| Efficiency ratio 69.55% 71.90% 75.37% Tier 1 capital 14.06% 12.42% 14.32% Total capita
Slide 20: Quarterly key metrics
Diluted EPS $0.44 $0.32 $0.32 $0.28 $-0.04 Return on common equity 8.56% 5.91% 5.84% 5.03% -0.78% Return on assets 0.95% 0.67% 0.73% 0.66% -0.10% Pre-provision netrevenue to assets (1) 1.38% 1.10% 0.96% 0.99% 0.00% Net interest margin (FTE) 3.35% 3.39% 3.49% 3.53% 3.46% Efficiency ratio 71.13% 75.58
Slide 21: Peer comparison
a aS TM Fee Re\ nue to zE 2 Average Assets 95% 1.79% 1.5496, 1.23% 5.8% 0.75% 0. 8496, 2.8% PEBO Peers _—$1-5B_| | PEBO Peers _—‘$1-5B PEBO Peers _—S15B_| LTMPriceto Eamings __LTMDividendPayout [i Dividend Yield 250% _ 257% Ae 4A AAR 14, ax is ABR 1.65% 26.67% PEBO _Peers $1-5B PEBO Peers $1-5B PEBO
Slide 22: Non-GAAP Measures
Non-GAAP Measures JUSTED FRE NETINCO! Adjusted corenet income is non-GAAP since it excludes non-core charges incurred during the period and the tax expenseis adjusted to be the estimated, effective tax rate for the year. (Sin Thowands) Q12014_Q42014 QU. 2015 Income (loss) before income taxes $ 6931
Slide 23: Non-GAAP Measures
Non-GAAP Measures PRE-PROVISION NET REVENUE Preprovision net revenue (PPR) 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 o
Slide 24: Non-GAAP Measures
Non-GAAP Measures PRE-PROVI! ION 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 i
Slide 25: 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 26: 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 27: 1st Quarter 2015
y Peoples ¢), Nasdaq: PEBO Investor Presentation 1* Quarter 2015
Slide 28: 1st Quarter Earnings Release
1stQuarter Earnings Release /Peop plese) BANCORP®