EX-99 2 exhibit99.htm EARNINGS RELEASE exhibit99.htm
 
 
 
                                                                                                                 PEOPLES BANCORP INC. – P.O. BOX 738 - MARIETTA, OHIO – 45750
                                                                                                                                                                                       www.peoplesbancorp.com


                                                                               NEWS RELEASE

FOR IMMEDIATE RELEASE
Contact:  
Carol A. Schneeberger
April 24, 2008
  
Chief Financial Officer and Treasurer
   
(740) 373-3155


PEOPLES BANCORP INC. ANNOUNCES
FIRST QUARTER EARNINGS
_____________________________________________________________________

MARIETTA, Ohio - Peoples Bancorp Inc. (“Peoples”) (NASDAQ: PEBO) announced first quarter 2008 net income of $5.6 million, or $0.55 per diluted share, compared to $5.6 million, or $0.53, for the first quarter of 2007.  First quarter 2008 earnings produced a return on average equity and assets of 11.00% and 1.21%, respectively, compared to 11.59% and 1.22% for the same quarter in 2007.
“We are pleased to report higher first quarter earnings per share, improved net interest margin and net interest income, as well as strong deposit growth,” said Mark F. Bradley, President and Chief Executive Officer. “We have seen an increase in nonperforming loans since year-end due primarily to one large commercial real estate loan being placed on nonaccrual status.  However, we believe the specific loan is adequately collateralized, and our capital levels remain strong.”
During the first quarter of 2008, management focused on reducing exposures to credit and interest rate risks by selling $7.2 million of preferred stocks issued by the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation and two US agency collateralized mortgage obligations with an aggregate book value of $7.6 million.  The preferred stocks were sold to reduce Peoples’ exposure to those entities.  The sale of the collateralized mortgage obligations was part of management’s current strategy to lessen the exposure to a future rising interest rate environment within Peoples’ investment portfolio.  Peoples also sold several small-lot mortgage-backed securities. The net impact of the portfolio management initiatives produced a net gain of $159,000. Peoples also recognized a gain of $134,000 from the partial redemption of its equity interest in Visa USA.
Net interest income grew to $14.3 million for the quarter ended March 31, 2008, from $13.9 million for the prior quarter, while net interest margin expanded 11 basis points to 3.51%.  Compared to the first quarter of 2007, net interest income was up 6% in the first quarter of 2008 and net interest margin expanded 19 basis points.  Peoples’ average earning assets, although up from a year ago, were down nearly $13 million from the fourth quarter of 2007, due to a higher level of commercial loan payoffs over the last several months.
“The recent downward shift in short-term interest rates along with a reduction in certain deposit rates has enhanced net interest income and margin,” said Carol A. Schneeberger, Chief Financial Officer and Treasurer.  “However, future margin expansion may be limited as the downward repricing of assets may outpace the reduction in rates on our funding sources.”
In the first quarter of 2008, total non-interest income was $8.2 million compared to $8.1 million a year ago.  First quarter trust and investment income increased 9% year-over-year, due mostly to a 5% gain in the market value of assets under management since March 31, 2007.  Peoples also saw e-banking revenues grow 11% to $0.9 million from sustained increases in debit card activity.  These improvements were partially offset by a slight decrease in deposit account service charges attributable to fewer non-sufficient funds fees and lower deposit account fees.  Compared to the fourth quarter of 2007, non-interest income was up 8% in the first quarter of 2008, due mostly to the receipt of annual performance based insurance commission income, which is typically earned during the first quarter of each year.
“We continue to see the benefits of our strategic actions designed to grow and diversify non-interest revenues,” said Schneeberger.  “Our wealth management group has produced another strong quarter, despite the recent downturn in the financial markets that lowered the value of managed assets compared to year-end 2007.  Insurance revenues are in line with our expectations considering the challenges from the tighter pricing margins caused by insurance companies reducing premiums to attract market share.  Our ongoing commitment to increasing cross-sales through a client relationship approach continues to provide additional opportunities to grow revenues.”
Non-interest expense totaled $13.7 million through the first three months of 2008, versus $13.3 million for the same period in 2007.  First quarter salary and benefit costs were up 4% year-over-year and accounted for over half of the increase in total non-interest expense, largely attributable to increased sales-based compensation and additional equity-based compensation. Other key contributing factors to higher non-interest expense were increased occupancy expenses, including repairs, maintenance and utility costs, and e-banking expense, primarily online banking costs.  Compared to the fourth quarter of 2007, non-interest expense increased $1.4 million, due mostly to higher performance based incentive compensation, medical insurance costs and equity-based compensation, coupled with the lower fourth quarter franchise tax expense which resulted from the settlement of a state tax audit.
 
PEOPLES BANCORP INC.
First Quarter 2008 Earnings Release                                                                
- Page 2 of 8 -                                                                                     
 
During the first quarter of 2008, gross portfolio loan balances decreased $5.2 million, from $1.12 billion at December 31, 2007.  Commercial loan balances were down $6.8 million, as commercial real estate loan payoffs outpaced new production.  Residential real estate loan balances were flat for the quarter, while Peoples’ serviced loan portfolio increased $2.0 million, to $178.8 million at March 31, 2008.
“As anticipated, loan balances declined slightly in the first quarter due to commercial loan payoffs,” added Schneeberger.  “While lending opportunities exist within our markets, we remain focused on loan quality rather than quantity, even more so during this time of economic uncertainty, which could limit near-term loan growth.”
Peoples’ provision for loan losses was $1.4 million for the first quarter of 2008, versus $1.5 million and $0.6 million in the fourth and first quarters of 2007, respectively.  The provision for loan losses is based on management’s quarterly evaluation of the loan portfolio and is directionally consistent with changes in Peoples’ overall loan quality.  At March 31, 2008, non-performing loans totaled $17.5 million, or 1.57% of total loans, compared to $9.4 million, or 0.83%, at December 31, 2007 and $6.0 million, or 0.53%, at March 31, 2007.  Nonaccrual loans increased $8.1 million during the first quarter, due mostly to Peoples placing a single $7 million commercial real estate loan into nonaccrual status.  Management believes the loan is adequately collateralized and that it has been appropriately considered in establishing the allowance for loan losses at March 31, 2008.  The allowance for loan losses was $16.0 million, or 91.2% of nonperforming loans, at March 31, 2008, versus $15.7 million, or 168.0%, at year-end 2007, and $14.5 million, or 241.3%, at March 31, 2007.  In the first quarter of 2008, net loan charge-offs were $1.2 million, up $0.6 million from a year ago, due primarily to the charge-off of $1 million related to the previously mentioned commercial real estate loan placed into nonaccrual status during the quarter.
Retail deposit balances, which exclude brokered deposits, grew $82.4 million during the first quarter of 2008, due almost entirely to growth in interest-bearing deposits.  Compared to year-end 2007, retail certificate of deposit balances were up $49.8 million, or 10%, at March 31, 2008, largely attributable to Peoples attracting funds from customers outside its primary market area instead of using higher-costing brokered deposits.  Interest-bearing demand deposits also rose $20.3 million, or 11%, during the first quarter of 2008, reflecting seasonal changes in public funds from tax revenues.  Non-interest-bearing deposits also grew $2.4 million since year-end 2007, from a $9.3 million increase in consumer deposit balances that offset a $7.1 million decline in commercial balances.  The overall deposit growth in the first quarter of 2008 allowed Peoples to reduce higher rate brokered certificates of deposit balances by $19.8 million and contributed to the $61.7 million, or 13%, overall reduction in borrowed funds since year-end.
“Loan quality and higher loan loss provisions are challenging many in the financial services industry,” summarized Bradley. “However, we are pleased with first quarter earnings, deposit growth, and net interest margin improvement.  We remain committed to growing the company in a disciplined manner that will allow us to deliver sustainable, long-term growth in earnings and dividends.”
Peoples Bancorp Inc. is a diversified financial products and services company with $1.9 billion in assets, 50 locations and 38 ATMs in Ohio, West Virginia and Kentucky.  Peoples makes available a complete line of banking, investment, insurance, and trust solutions through its financial service units – Peoples Bank, National Association; Peoples Financial Advisors (a division of Peoples Bank) and Peoples Insurance Agency, Inc.  Peoples’ common shares are traded on the NASDAQ Global Select Market under the symbol “PEBO”, and Peoples is a member of the Russell 3000 index of US publicly traded companies.  Learn more about Peoples at www.peoplesbancorp.com.


Conference Call to Discuss Earnings:
Peoples will conduct a facilitated conference call to discuss first quarter 2008 results of operations today at 11:00 a.m. Eastern Daylight Time, with members of Peoples’ executive management participating.  Analysts, media and individual investors are invited to participate in the conference call by calling (800) 860-2442.  A simultaneous Webcast of the conference call audio will be available online via the “Investor Relations” section of Peoples’ website, www.peoplesbancorp.com.  Participants are encouraged to call or sign in at least 15 minutes prior to the scheduled conference call time to ensure participation and, if required, to download and install the necessary software.  A replay of the call will be available on Peoples’ website in the “Investor Relations” section for one year.

 
PEOPLES BANCORP INC.
First Quarter 2008 Earnings Release
- Page 3 of 8 -

Safe Harbor Statement:
This news release may contain certain forward-looking statements with respect to Peoples’ financial condition, results of operations, plans, objectives, future performance and business.  Except for the historical and present factual information contained in this news release, the matters discussed in this news release, and other statements identified by words such as “feel,” “expect,” “believe,” “plan,” “will,” “would,” “should,” “could” and similar expressions are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Rule 175 promulgated thereunder, and Section 21E of the Securities Exchange Act of 1934, as amended, and Rule 3b-6 promulgated thereunder.  These forward-looking statements are subject to risks and uncertain­ties that may cause actual results to differ materially.  Factors that might cause such a difference include, but are not limited to: (1) deterioration in the credit quality of Peoples’ loan portfolio could occur due to a number of factors, which may adversely impact the provision for loan losses; (2) competitive pressures among financial institutions or from non-financial institutions, which may increase significantly; (3) changes in the interest rate environment, which may adversely impact interest margins; (4) changes in prepayment speeds, loan originations, sale volumes, and charge-offs, which may be less favorable than expected and adversely impact the amount of interest income generated; (5) general economic conditions, either national or in the states in which Peoples and its subsidiaries do business, which may be less favorable than expected; (6) political developments, wars or other hostilities, which may disrupt or increase volatility in securities markets or other economic conditions; (7) legislative or regulatory changes or actions, which may adversely affect the business of Peoples and its subsidiaries; (8) adverse changes in the conditions and trends in the financial markets, which may adversely affect the fair value of securities within Peoples’ investment portfolio; (9) a delayed or incomplete resolution of regulatory issues that could arise; (10) ability to receive dividends from subsidiaries; (11) the impact of reputational risk created by these developments on such matters as business generation and retention, funding and liquidity; (12) the costs and effects of regulatory and legal developments, including the outcome of regulatory or other governmental inquiries and legal proceedings and results of regulatory examinations; and (13) other risk factors relating to the banking industry or Peoples as detailed from time to time in Peoples’ reports filed with the Securities and Exchange Commission (“SEC”), including those risk factors included in the disclosures under the heading “ITEM 1A. RISK FACTORS” of Peoples’ Annual Report on Form 10-K for the fiscal year ended December 31, 2007.  Peoples undertakes no obligation to update these forward-looking statements to reflect events or circumstances after the date of this news release or to reflect the occurrence of unanticipated events, except as required by applicable legal requirements.  Copies of documents filed with the SEC are available free of charge at the SEC’s website at http://www.sec.gov and/or from Peoples’ website.


PEOPLES BANCORP INC.  (NASDAQ:  PEBO)
PER SHARE DATA AND PERFORMANCE RATIOS
 
 
Three Months Ended
 
March 31,
  
December 31,
  
March 31,
(in $000’s, except per share data)
2008
  
2007
  
2007
Net income per share:
          
   Basic
 $          0.55
  
 $            0.21
  
 $           0.53
   Diluted
 $          0.55
  
 $            0.21
  
 $           0.53
Cash dividends declared per share
 $          0.22
  
 $            0.22
  
 $           0.22
Book value per share
 $        20.15
  
 $          19.70
  
 $         18.85
Tangible book value per share (a)
 $        13.58
  
 $          13.09
  
 $         12.34
Closing stock price at end of period
 $        24.11
  
 $          24.89
  
 $         26.41
Dividend payout as a percentage of net income
40.46%
  
103.58%
  
41.23%
Return on average equity (b)
11.00%
  
4.34%
  
11.59%
Return on average assets  (b)
1.21%
  
0.46%
  
1.22%
Efficiency ratio (c)
58.09%
  
54.14%
  
58.45%
Net interest margin (fully-tax equivalent) (b)
3.51%
  
3.40%
  
3.32%

(a)
Excludes the balance sheet impact of intangible assets acquired through acquisitions.
(b)
Ratios are presented on an annualized basis.
(c)
Non-interest expense (less intangible amortization) as a percentage of fully tax-equivalent net interest income plus non-interest income (less securities and asset disposal gains/losses)

 
PEOPLES BANCORP INC.
First Quarter 2008 Earnings Release
- Page 4 of 8 -
 
PEOPLES BANCORP INC. CONSOLIDATED STATEMENTS OF INCOME
 
 
Three Months Ended
 
March 31,
(in $000’s)
2008
  
2007
Interest income
 $   27,299
  
 $     28,360
Interest expense
      13,013
  
        14,839
     Net interest income
      14,286
  
        13,521
Provision for loan losses
        1,437
  
            623
Net interest income after provision for loan losses
      12,849
  
        12,898
       
Net gain on investment securities
           293
  
              17
       
Non-interest income:
      
    Insurance commissions
        2,930
  
          2,950
    Service charges on deposits
        2,295
  
          2,368
    Trust and investment income
        1,246
  
          1,143
    Electronic banking revenues
           918
  
            828
    Business owned life insurance
           424
  
            411
    Mortgage banking income
           204
  
            207
    Other
           217
  
            207
            Total non-interest income
        8,234
  
          8,114
Non-interest expense:
      
    Salaries and benefits
        7,560
  
          7,297
    Net occupancy and equipment
        1,426
  
          1,332
    Professional fees
           610
  
            614
    Data processing and software
           541
  
            513
    Electronic banking expense
           524
  
            460
    Franchise taxes
           416
  
            439
    Amortization of intangible assets
           415
  
            500
    Marketing
           370
  
            349
    Other
        1,880
  
          1,838
            Total non-interest expense
      13,742
  
        13,342
Income before income taxes
        7,634
  
          7,687
Income tax expense
        1,986
  
          2,041
           Net income
 $     5,648
  
 $       5,646
       
Net income per share:
      
    Basic
 $       0.55
  
 $        0.53
    Diluted
 $       0.55
  
 $        0.53
       
Cash dividends declared per share
 $       0.22
  
 $        0.22
       
Weighted average shares outstanding:
      
    Basic
10,302,713
  
10,584,893
    Diluted
10,345,180
  
10,670,148
       
Actual shares outstanding  (end of period)
10,295,414
  
10,511,134

 
PEOPLES BANCORP INC.
First Quarter 2008 Earnings Release
- Page 5 of 8 -

PEOPLES BANCORP INC. CONSOLIDATED BALANCE SHEETS
 
 
March 31,
  
December 31,
(in $000’s)
2008
  
2007
       
ASSETS
      
Cash and cash equivalents:
      
   Cash and due from banks
 $       47,508
  
 $        43,275
   Interest-bearing deposits in other banks
            1,714
  
             1,925
           Total cash and cash equivalents
          49,222
  
           45,200
       
Available-for-sale investment securities, at fair value (amortized cost of $543,365
    
   at March 31, 2008 and $535,979 at December 31, 2007)
        551,098
  
         542,231
Other investment securities, at cost
          23,478
  
           23,232
          Total investment securities
        574,576
  
         565,463
       
Loans, net of unearned interest
     1,115,729
  
       1,120,941
Allowance for loan losses
        (15,953)
  
          (15,718)
   Net loans
     1,099,776
  
       1,105,223
       
Loans held for sale
               823
  
             1,994
Bank premises and equipment, net of accumulated depreciation
          24,762
  
           24,803
Business owned life insurance
          50,715
  
           50,291
Goodwill
          62,520
  
           62,520
Other intangible assets
            5,085
  
             5,509
Other assets
          23,959
  
           24,550
          TOTAL ASSETS
 $  1,891,438
  
 $    1,885,553
       
LIABILITIES
      
Non-interest-bearing deposits
 $     177,449
  
 $       175,057
Interest-bearing deposits
     1,071,542
  
       1,011,320
     Total deposits
     1,248,991
  
       1,186,377
       
Federal funds purchased, securities sold under repurchase agreements,
      
   and other short-term borrowings
        154,866
  
         222,541
Long-term borrowings
        237,976
  
         231,979
Junior subordinated notes held by subsidiary trusts
          22,469
  
           22,460
Accrued expenses and other liabilities
          19,715
  
           19,360
          TOTAL LIABILITIES
     1,684,017
  
       1,682,717
       
STOCKHOLDERS’ EQUITY
      
Common stock, no par value (24,000,000 shares authorized, 10,934,940 shares
    
   issued at March 31, 2008, and 10,925,954 shares issued at December 31, 2007)
        163,857
  
         163,399
Retained earnings
          55,890
  
           52,527
Accumulated comprehensive income, net of deferred income taxes
            3,977
  
             3,014
Treasury stock, at cost (639,526 shares at March 31, 2008, and
      
   629,206 shares at December 31, 2007)
        (16,303)
  
          (16,104)
          TOTAL STOCKHOLDERS’ EQUITY
        207,421
  
         202,836
                  TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
 $  1,891,438
  
 $    1,885,553
 
 
PEOPLES BANCORP INC.
First Quarter 2008 Earnings Release
- Page 6 of 8 -

PEOPLES BANCORP INC. SELECTED FINANCIAL INFORMATION
 
 
March 31,
  
December 31,
  
September 30,
  
June 30,
  
March 31,
(in $000’s, end of period)
2008
  
2007
  
2007
  
2007
  
2007
                   
LOAN PORTFOLIO
                  
Commercial, mortgage
 $     498,426
  
 $     513,847
  
 $     481,341
  
 $     468,241
  
 $     477,189
Commercial, other
       180,523
  
       171,937
  
       174,753
  
       177,651
  
       195,612
Real estate, construction
         72,326
  
         71,794
  
         83,714
  
         96,690
  
         97,116
Real estate, mortgage
       237,366
  
       237,641
  
       240,599
  
       243,080
  
       247,110
Home equity lines of credit
         43,101
  
         42,706
  
         43,506
  
         43,118
  
         43,404
Consumer
         81,108
  
         80,544
  
         80,661
  
         77,482
  
         74,157
Deposit account overdrafts
           2,879
  
           2,472
  
           2,047
  
           2,147
  
           1,037
     Total loans
     1,115,729
  
     1,120,941
  
     1,106,621
  
     1,108,409
  
     1,135,625
                   
DEPOSIT BALANCES
                  
Interest-bearing deposits:
                  
   Retail certificates of deposit
 $     549,439
  
 $     499,684
  
 $     515,432
  
 $     517,910
  
 $     528,543
   Interest-bearing transaction accounts
       211,708
  
       191,359
  
       178,880
  
       179,430
  
       182,164
   Money market deposit accounts
       156,206
  
       153,299
  
       147,848
  
       149,791
  
       145,073
   Savings accounts
       114,433
  
       107,389
  
       112,507
  
       115,691
  
       119,153
   Brokered certificates of deposits
         39,756
  
         59,589
  
         57,507
  
         66,601
  
         70,535
        Total interest-bearing deposits
     1,071,542
  
     1,011,320
  
     1,012,174
  
     1,029,423
  
     1,045,468
Non-interest-bearing deposits
       177,449
  
       175,057
  
       171,319
  
       173,675
  
       172,122
Total deposits
     1,248,991
  
     1,186,377
  
     1,183,493
  
     1,203,098
  
     1,217,590
                   
ASSET QUALITY
                  
Nonperforming assets:
                  
   Loans 90 days or more past due
 $           438
  
 $           378
  
 $           190
  
 $           313
  
 $              –
   Nonaccrual loans
         17,061
  
           8,980
  
           5,979
  
           7,096
  
           6,015
            Total nonperforming loans
         17,499
  
           9,358
  
           6,169
  
           7,409
  
           6,015
   Other real estate owned
              343
  
              343
  
              343
  
              213
  
               50
            Total nonperforming assets
 $      17,842
  
 $        9,701
  
 $        6,512
  
 $        7,622
  
 $        6,065
                   
Allowance for loan losses as a percent of
                  
   nonperforming loans
91.2%
  
168.0%
  
237.3%
  
198.3%
  
241.3%
Nonperforming loans as a percent of total loans
1.57%
  
0.83%
  
0.56%
  
0.67%
  
0.53%
Nonperforming assets as a percent of total assets
0.94%
  
0.51%
  
0.34%
  
0.41%
  
0.32%
Nonperforming assets as a percent of total loans and
                
   other real estate owned
1.60%
  
0.87%
  
0.59%
  
0.69%
  
0.53%
Allowance for loan losses as a percent of total loans
1.43%
  
1.40%
  
1.32%
  
1.33%
  
1.28%
                   
REGULATORY CAPITAL (a)
                  
Tier 1 risk-based capital
12.13%
  
11.91%
  
11.82%
  
11.74%
  
11.93%
Total risk-based capital ratio (Tier 1 and Tier 2)
13.44%
  
13.23%
  
13.04%
  
12.97%
  
13.11%
Leverage ratio
8.81%
  
8.48%
  
8.67%
  
8.67%
  
8.91%
Tier 1 capital
 $     158,919
  
 $     154,933
  
 $     156,209
  
 $     155,361
  
 $     161,170
Total capital (Tier 1 and Tier 2)
 $     176,083
  
 $     172,117
  
 $     172,263
  
 $     171,592
  
 $     177,207
Total risk-weighted assets
 $  1,310,391
  
 $  1,301,056
  
 $  1,321,367
  
 $  1,323,359
  
 $  1,351,409

                                (a) March 31, 2008 data based on preliminary analysis and subject to revision.
 
 
PEOPLES BANCORP INC.
First Quarter 2008 Earnings Release
- Page 7 of 8 -
 
PEOPLES BANCORP INC. PROVISION FOR LOAN LOSSES INFORMATION
 
Three Months Ended
 
March 31,
  
December 31,
March 31,
(in $000’s)
2008
  
2007
  
2007
PROVISION FOR LOAN LOSSES
          
Provision for Overdraft Privilege losses
 $         37
  
 $        172
  
 $          23
Provision for other loan losses
       1,400
  
        1,350
  
           600
     Total provision for loan losses
 $    1,437
  
 $     1,522
  
 $        623
           
NET CHARGE-OFFS
          
Gross charge-offs
 $    1,638
  
 $        840
  
 $     1,645
Recoveries
          436
  
           395
  
        1,026
     Net charge-offs
 $    1,202
  
 $        445
  
 $        619
           
NET CHARGE-OFFS (RECOVERIES) BY TYPE
        
Commercial
 $       861
  
 $          32
  
 $        288
Real estate
          160
  
           172
  
             13
Consumer
          102
  
             66
  
           266
Overdrafts
            87
  
           177
  
             53
Credit card
            (8)
  
             (2)
  
             (1)
     Total net charge-offs
 $    1,202
  
 $        445
  
 $        619
           
Net charge-offs as a percent of loans (annualized)
0.43%
  
0.16%
  
0.22%


PEOPLES BANCORP INC. SUPPLEMENTAL INFORMATION

 
March 31,
  
December 31,
  
September 30,
  
June 30,
  
March 31,
(in $000’s, end of period)
2008
  
2007
  
2007
  
2007
  
2007
                   
Trust assets under management
 $     775,834
  
 $     797,443
  
 $     805,931
  
 $     766,417
  
 $     744,939
Brokerage assets under management
 $     221,340
  
 $     223,950
  
 $     218,573
  
 $     209,858
  
 $     201,143
Mortgage loans serviced for others
 $     178,763
  
 $     176,742
  
 $     176,380
  
 $     172,314
  
 $     165,728
Employees (full-time equivalent)
              556
  
              559
  
              553
  
              556
  
              560
Announced treasury share plans: (a)
                  
   Total shares authorized for plan
        500,000
  
        925,000
  
        425,000
  
        425,000
  
        425,000
   Shares purchased
         13,600
  
         84,600
  
        139,000
  
         70,000
  
        170,000
   Average price
 $        21.59
  
 $        24.25
  
 $        24.05
  
 $        26.79
  
 $        28.70
 
                                                 (a) 2008 data reflects shares purchased under the repurchase plan announced on November 9, 2007, authorizing the repurchase
                                                 of up to 500,000 common shares, upon the completion of the 2007 Stock Repurchase Program. 2007 data reflects shares purchased
                                                 under the repurchase plan announced on November 9, 2007, and under the 2007 Stock Repurchase Program announced on
                                                 January 12, 2007, authorizing the repurchase of up to 425,000 common shares.  The number of common shares purchased for
                                                 treasury and average price paid are presented for the three-month period ended on the date indicated.

 
PEOPLES BANCORP INC.
First Quarter 2008 Earnings Release
- Page 8 of 8 -
 
PEOPLES BANCORP INC. CONSOLIDATED AVERAGE BALANCE SHEET AND NET INTEREST INCOME
 
 
Three Months Ended
 
March 31, 2008
  
December 31, 2007
  
March 31, 2007
(in $000’s)
Balance
Income/
Expense
Yield/
Cost
Balance
Income/
Expense
Yield/
Cost
Balance
Income/
Expense
Yield/ Cost
ASSETS
                      
Short-term investments
 $          4,017
 $        32
3.11%
  
 $        2,632
 $        31
4.64%
  
 $        3,883
 $        46
4.81%
Investment securities (a)
         581,638
      7,810
5.37%
  
       581,971
      7,906
5.43%
  
       559,292
      7,281
5.21%
Gross loans (a)
      1,113,023
    19,879
7.17%
  
    1,125,794
    21,232
7.48%
  
    1,129,520
    21,368
7.65%
Allowance for loan losses
         (16,240)
      
        (15,048)
      
        (14,731)
    
Total earning assets
      1,682,438
    27,721
6.61%
  
    1,695,349
    29,169
6.85%
  
    1,677,964
    28,695
6.89%
Intangible assets
           67,831
      
         68,275
      
         68,589
    
Other assets
         128,307
      
       128,747
      
       128,598
    
Total assets
      1,878,576
      
    1,892,371
      
    1,875,151
    
                       
LIABILITIES AND EQUITY
                      
Interest-bearing deposits:
                      
Savings
         108,525
         122
0.45%
  
       109,543
         181
0.66%
  
       114,132
         166
0.59%
Interest-bearing demand deposits
         197,998
         982
1.99%
  
       185,246
      1,036
2.22%
  
       176,773
         846
1.94%
Money market
         152,202
      1,058
2.80%
  
       151,582
      1,365
3.57%
  
       141,402
      1,369
3.93%
Brokered time
           53,334
         695
5.24%
  
         59,306
         774
5.18%
  
         70,518
         897
5.16%
Retail time
         523,929
      5,608
4.30%
  
       506,014
      5,698
4.47%
  
       531,776
      5,849
4.46%
    Total interest-bearing deposits
      1,035,988
      8,465
3.29%
  
    1,011,691
      9,054
3.55%
  
    1,034,601
      9,127
3.58%
Short-term borrowings
         188,615
      1,539
3.24%
  
       245,977
      2,804
4.48%
  
       249,333
      3,215
5.17%
Long-term borrowings
         257,598
      3,009
4.68%
  
       244,822
      2,965
4.83%
  
       206,346
      2,497
4.86%
Total borrowed funds
         446,213
      4,548
4.05%
  
       490,799
      5,769
4.61%
  
       455,679
      5,712
5.02%
    Total interest-bearing liabilities
      1,482,201
    13,013
3.52%
  
    1,502,490
    14,823
3.91%
  
    1,490,280
    14,839
4.02%
Non-interest-bearing deposits
         172,994
      
       173,411
      
       171,123
    
Other liabilities
           16,889
      
         15,071
      
         16,143
    
Total liabilities
      1,672,084
      
    1,690,972
      
    1,677,546
    
Stockholders’ equity
         206,492
      
       201,399
      
       197,605
    
Total liabilities and equity
 $   1,878,576
      
 $ 1,892,371
      
 $ 1,875,151
    
                       
Net interest income/spread (a)
  
 $ 14,708
3.09%
    
 $ 14,346
2.94%
    
 $ 13,856
2.87%
Net interest margin (a)
    
3.51%
      
3.40%
      
3.32%
                       
(a) Information presented on a fully tax-equivalent basis.
                


END OF RELEASE