MARIETTA, Ohio, July 29 OH-PeoplesBancorp-ern
MARIETTA, Ohio, July 29 /PRNewswire-FirstCall/ -- Peoples Bancorp Inc.
("Peoples") (Nasdaq: PEBO) today announced second quarter 2008 net income of
$2.0 million, or $0.19 per diluted share, compared to $5.3 million, or $0.51
per diluted share, for the second quarter of 2007. On a year-to-date basis,
net income totaled $7.6 million and diluted earnings per share were $0.73,
versus $11.0 million and $1.04, respectively, for the same period in 2007.
Peoples' second quarter 2008 earnings included $4.5 million of additional
provision for loan losses ($2.9 million or $0.28 per diluted share after-tax)
related to a single $12.6 million commercial real estate loan identified as
impaired in connection with management's quarterly analysis of the allowance
for loan losses for the second quarter. Management determined that the value
of the collateral, which is located in west central Florida, had decreased
substantially, causing the loan to be under-collateralized. Accordingly, this
loan was placed on non-accrual status and charged down to the estimated
realizable fair value of the collateral of $6.5 million, less estimated costs
to sell of $0.3 million, at June 30, 2008.
"Although out-of-market loans are not a big part of our portfolio, our
second quarter results, like those of many other financial companies, were
impacted by sluggish economic conditions and the deteriorating housing market,
specifically in Florida," said Mark F. Bradley, President and Chief Executive
Officer. "Our remaining exposure to Florida real estate is less than $3
million and these unrelated loan relationships are performing in accordance
with their original terms. While nonperforming assets and the loan loss
provision have increased, our capital levels remain well above the amounts
needed to be considered well-capitalized and serve as a source of strength as
we work through the isolated issues in the loan portfolio."
Bradley continued, "Despite lower earnings, we still achieved success in
key areas, including deposit growth, increased net interest income, net
interest margin expansion and lower operating expenses which led to improved
operating efficiency. We will continue to work through the recent loan
challenges while focusing on strategies for long-term revenue growth, with an
eye on efficiency in these challenging economic times."
During the second quarter of 2008, Peoples sold preferred stocks issued by
the Federal National Mortgage Association ("FNMA") and the Federal Home Loan
Mortgage Corporation ("FHLMC") with a recorded value of $2.7 million, at a net
pre-tax loss of $191,000, which was partially offset by a $138,000 pre-tax
gain from the sale of mortgage-backed securities with a recorded value of
$18.7 million. These securities were sold as part of the ongoing management
of Peoples' credit and interest rate risk exposures in its investment
portfolio. At June 30, 2008, Peoples held in its investment portfolio FNMA
preferred stocks with a market value of $1.9 million, resulting in a $260,000
other-than-temporary impairment charge in the second quarter of 2008. In July,
Peoples sold these remaining preferred stocks, which completely eliminated all
holding of preferred stocks issued by FNMA and FHLMC. As a result of the July
sales, Peoples will recognize a pre-tax loss of $594,000 ($386,000 after-tax)
in the third quarter of 2008.
For the quarter ended June 30, 2008, net interest income was $14.9
million, up 12% over the prior year second quarter, with the net interest
margin expanding 30 basis points to 3.61%. On a linked quarter basis, net
interest income increased 4% and net interest margin expanded 10 basis points.
Through six months of 2008, net interest income has grown 9% compared to the
same period last year and net interest margin was 3.56% versus 3.32%. These
improvements were largely attributable to the reduction in short-term market
rates and widening of credit spreads, as well as Peoples' growth of lower cost
retail deposits. As a result, Peoples' second quarter cost of funds dropped
38 basis points to 3.13%, from 3.52% for the linked quarter and fell 88 basis
points compared to the second quarter of 2007, while asset yields declined 25
and 50 basis points over the same periods, respectively. On a year-to-date
basis, the average cost of funds decreased 69 basis points and the average
yield on assets was down 39 basis points.
Second quarter 2008 net interest income and margin included $226,000
additional income, or five basis points, from the net impact of loan
prepayment fees and reduction in interest income for non-accrual loans. In
comparison, second quarter 2007 net interest income and margin were reduced by
$309,000 or seven basis points due to loan and investment interest reductions.
The net impact in first quarter 2008 was additional income of $126,000, or
three additional basis points of net interest margin.
"Second quarter net interest income and margin exceeded expectations, as
asset yields dropped less than anticipated due to wider credit spreads," said
Edward G. Sloane, Chief Financial Officer and Treasurer. "While the lower
cost of funds negated the drop in asset yields thus far in 2008, we expect net
interest margin to be pressured in the near term by assets repricing downward
and limited additional opportunities to lower funding costs. Given the
uncertainty regarding the timing and magnitude of future interest rate
changes, we continue to focus on positioning our balance sheet to optimize
Peoples' net interest income stream, while also minimizing the impact of
future rate changes on our earnings."
Non-interest income was at a consistent level compared to the prior year,
totaling $7.9 million and $16.1 million for the three and six months ended
June 30, 2008, respectively, as higher trust and investment income and
electronic banking revenues were offset by lower insurance commissions and
deposit account service charges. On a linked-quarter basis, non-interest
income was down 4% in the second quarter of 2008, due to the recognition of
annual performance-based insurance commissions in the first quarter.
Excluding the impact of this seasonal fluctuation, non-interest income grew 6%
in comparison to the first quarter of 2008.
Peoples' trust and investment revenues experienced 9% growth
year-over-year for both the second quarter and on a year-to-date basis,
attributable to increased assets under management from new business, which
more than offset the decline in asset values caused by the recent downturn in
the financial markets. At June 30, 2008, total managed assets were $987.6
million, up 1% compared to a year ago. Increases in debit card activity have
produced double-digit growth in electronic banking revenues, with second
quarter 2008 revenues up 13% versus a year ago and 10% from the first quarter
of 2008. Insurance sales commissions (excluding performance-based
commissions) were up 5% from the linked quarter, despite a softer insurance
market that is producing tighter pricing margins within the insurance
industry.
Total non-interest expense was $13.0 million for the three months ended
June 30, 2008, down 1% from the same period a year ago, due mostly to a modest
decrease in professional fees. Second quarter 2008 salary and benefit costs,
Peoples' largest non-interest expense, were comparable to last year's amount,
as higher sales-based compensation and increased base salaries from annual
merit adjustments were offset by lower incentive expense tied to corporate
results. Compared to the first quarter of 2008, total non-interest expense
decreased 5% in the second quarter, due to lower incentive and stock-based
compensation expenses and reduced professional fees. Through six months of
2008, non-interest expense totaled $26.8 million versus $26.5 million for the
first half of 2007, with the increase largely the result of higher sales-based
compensation expense and employee medical benefit costs.
"Operating expenses are in line with expectations, while total
non-interest income levels were relatively flat," said Sloane. "We improved
our efficiency ratio in the first half of 2008 by expanding net interest
margin and controlling operating costs."
At June 30, 2008, portfolio loan balances were down $10.9 million for the
quarter and $16.1 million since year-end 2007, totaling $1.10 billion. These
declines were due to commercial loan payoffs outpacing new production, coupled
with the charge-down of the previously-mentioned impaired commercial loan.
Peoples' serviced real estate loan portfolio continues to increase steadily,
reaching $182.3 million at June 30, 2008, versus $176.7 million at December
31, 2007.
In the second quarter of 2008, the provision for loan losses was $6.8
million compared to $1.4 million last quarter and $0.8 million in the second
quarter of 2007. On a year-to-date basis, Peoples' provision for loan losses
totaled $8.2 million versus $1.5 million a year ago. The provision for loan
losses continues to be based on management's quarterly evaluation of the loan
portfolio and is directionally consistent with changes in Peoples' overall
loan quality.
Non-performing loans totaled $21.2 million, or 1.92% of total loans, up
from $17.5 million, or 1.57%, at March 31, 2008, and $9.4 million, or 0.83% at
December 31, 2007. The increased amount of non-performing loans during the
first half of 2008 was due to the previously-mentioned impaired loan being
placed on non-accrual status during the second quarter and a $7.0 million,
unrelated commercial loan being placed on non-accrual status during the first
quarter of 2008. No specific reserves were made for these loans at June 30,
2008, since they have been charged down to the estimated realizable fair value
of the underlying collateral. As a result, the allowance for loan losses was
$15.2 million, or 71.8% of non-performing loans, versus $16.0 million, or
91.2%, at March 31, 2008, and $15.7 million, or 168.0%, at year-end 2007.
Management believes the allowance for loan losses was adequate at June 30,
2008, based on all information currently available.
Second quarter of 2008 net loan charge-offs were $7.5 million compared to
$1.2 million last quarter and $0.7 million for the second quarter of 2007,
with the increase due to the $6.4 million charge-down on the impaired
commercial loan. Through six months of 2008, net loan charge-offs totaled
$8.7 million versus $1.3 million a year ago. A portion of the change was
attributable to a recovery that occurred during the first quarter of 2007 on a
group of commercial loans charged-off in 2002, which reduced first quarter
2007 net charge-offs by $609,000.
"We believe the nature of the increase in non-performing loans in the
current credit environment is manageable because of our limited out-of-market
lending activities and sound underwriting practices," said Sloane. "The two
large commercial loans placed on non-accrual status in 2008 were appropriately
considered in establishing the level of allowance for loan losses at June 30,
2008 and in prior periods. We will continue to monitor and evaluate these two
relationships closely through our review process."
Peoples' total out-of-market loans comprised $108.2 million at June 30,
2008, or approximately 10% of total outstanding loan balances, with $68.8
million of these loans located in Ohio, West Virginia and Kentucky. Of the
remaining $39.4 million of loans, the largest concentrations are in Arizona
and Florida, with outstanding balances of $10.1 million and $8.5 million,
respectively at June 30, 2008. In all other states, the aggregate outstanding
balance in the state was less than $5 million at June 30, 2008. Except for
the previously-mentioned impaired loan, these loans are performing in
accordance with their original terms.
Retail deposit balances, which exclude brokered deposits, grew $32.0
million during the second quarter of 2008, attributable to higher money market
and non-interest-bearing balances. For the quarter, money market balances
grew $15.8 million, due to Peoples offering more competitive rates. Retail
certificates of deposit and savings balances increased $8.0 million and $2.1
million, respectively, while interest-bearing demand deposits fell $9.6
million, due in part to seasonal changes in governmental deposit balances.
Non-interest-bearing deposits grew $15.8 million during the second quarter of
2008, due almost entirely to higher commercial balances at June 30, 2008.
Since year-end 2007, total retail balances have increased $114.5 million, or
10%, due mostly to higher interest-bearing retail balances from Peoples
attracting approximately $60 million of funds from customers outside its
primary market area instead of using higher-costing brokered deposits. The
retail deposit growth during 2008 has allowed Peoples to reduce higher rate
brokered certificates of deposit balances by $19.8 million and contributed to
the $71.2 million, or 15%, overall reduction in borrowed funds since year-end
2007.
In the second quarter of 2008, Peoples increased its dividend 4.5% to
$0.23 per share, from the $0.22 per share declared for both the first quarter
of 2008 and second quarter of 2007. Through six months of 2008, Peoples'
dividend payout ratio was 61.5% of net income versus 42.3% for the same period
last year.
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 second
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.
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 uncertain ties 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, such as
adverse changes in economic conditions that impair the ability of borrowers to
repay their loans, the underlying value of the collateral could prove less
valuable than otherwise assumed and assumed cash flows may be worse than
expected, 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) Peoples' ability to receive dividends from its 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 Six Months Ended
(in $000's, except per June 30, March 31, June 30, June 30,
share data) 2008 2008 2007 2008 2007
Net income per share:
Basic $0.19$0.55$0.51$0.74$1.04
Diluted $0.19$0.55$0.51$0.73$1.04
Cash dividends declared
per share$0.23$0.22$0.22$0.45$0.44
Book value per share $19.55 $20.15 $18.78 $19.55 $18.78
Tangible book value per
share (a) $13.03 $13.58 $12.19 $13.03 $12.19
Closing stock price at
end of period $18.98 $24.11 $27.07 $18.98 $27.07
Dividend payout as a
percentage of net income122.38% 40.46% 43.41% 61.51% 42.29%
Return on average equity (b) 3.81% 11.00% 10.81%7.41% 11.19%
Return on average assets (b) 0.41%1.21%1.16%0.81%1.19%
Efficiency ratio (c) 54.55% 58.09% 58.68% 56.31% 58.57%
Net interest margin
(fully tax-equivalent) (b) 3.61%3.51%3.31%3.56%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. CONSOLIDATED STATEMENTS OF INCOME
Three Months Ended Six Months Ended
June 30,June 30,
(in $000's)2008200720082007
Interest income $26,548 $28,080 $53,847 $56,440
Interest expense 11,674 14,747 24,687 29,586
Net interest income 14,874 13,333 29,160 26,854
Provision for loan losses 6,765 847 8,202 1,470
Net interest income after
provision for loan losses 8,109 12,486 20,958 25,384
Net (loss) gain on
securities transactions (308) 21 (15) 38
Net gain on asset disposals 3 34 3 34
Non-interest income:
Deposit account service
charges 2,375 2,445 4,670 4,813
Insurance commissions 2,225 2,409 5,155 5,359
Trust and investment income 1,403 1,286 2,649 2,429
Electronic banking revenues 1,013 900 1,931 1,728
Bank owned life insurance 405 408 829 819
Mortgage banking income 192 264 396 471
Other 270 208 487 415
Total non-interest income 7,883 7,920 16,117 16,034
Non-interest expense:
Salaries and benefits 6,906 6,870 14,466 14,167
Net occupancy and equipment 1,399 1,352 2,825 2,684
Data processing and software560 551 1,101 1,064
Electronic banking expense 516 554 1,040 1,014
Professional fees 456 631 1,066 1,245
Franchise taxes 416 448 832 887
Amortization of intangible
assets 403 489 818 989
Marketing 367 379 737 728
Other 2,021 1,876 3,901 3,714
Total non-interest
expense 13,044 13,150 26,786 26,492
Income before income taxes 2,643 7,311 10,277 14,998
Income tax expense690 1,962 2,676 4,003
Net income $1,953 $5,349 $7,601 $10,995
Net income per share:
Basic $0.19 $0.51 $0.74 $1.04
Diluted $0.19 $0.51 $0.73 $1.04
Cash dividends declared
per share $0.23 $0.22 $0.45 $0.44
Weighted average shares
outstanding:
Basic10,304,666 10,503,952 10,303,690 10,544,199
Diluted 10,352,135 10,574,250 10,347,720 10,619,815
Actual shares outstanding
(end of period) 10,304,597 10,464,741 10,304,597 10,464,741
PEOPLES BANCORP INC. CONSOLIDATED BALANCE SHEETS
June 30,December 31,
(in $000's) 2008 2007
ASSETS
Cash and cash equivalents:
Cash and due from banks $44,715 $43,275
Interest-bearing deposits in other banks 1,801 1,925
Total cash and cash equivalents 46,51645,200
Available-for-sale investment securities,
at fair value (amortized cost of $577,436
at June 30, 2008 and $535,979 at December
31, 2007) 576,207 542,231
Other investment securities, at cost23,73523,232
Total investment securities599,942 565,463
Loans, net of unearned interest 1,104,852 1,120,941
Allowance for loan losses (15,229) (15,718)
Net loans 1,089,623 1,105,223
Loans held for sale471 1,994
Bank premises and equipment, net of
accumulated depreciation 24,95424,803
Bank owned life insurance 51,12050,291
Goodwill62,52062,520
Other intangible assets 4,697 5,509
Other assets27,03824,550
TOTAL ASSETS $1,906,881$1,885,553
LIABILITIES
Non-interest-bearing deposits $193,265 $175,057
Interest-bearing deposits1,087,783 1,011,320
Total deposits 1,281,048 1,186,377
Federal funds purchased, securities
sold under repurchase agreements,
and other short-term borrowings 129,370 222,541
Long-term borrowings 253,885 231,979
Junior subordinated notes held by
subsidiary trusts 22,47822,460
Accrued expenses and other liabilities 18,65419,360
TOTAL LIABILITIES 1,705,435 1,682,717
STOCKHOLDERS' EQUITY
Common stock, no par value
(24,000,000 shares authorized, 10,946,025
shares issued at June 30, 2008, and
10,925,954 shares issued at December 31,
2007) 164,190 163,399
Retained earnings 55,45352,527
Accumulated comprehensive (loss) income,
net of deferred income taxes (1,849)3,014
Treasury stock, at cost (641,428 shares at
June 30, 2008, and 629,206 shares at
December 31, 2007)(16,348) (16,104)
TOTAL STOCKHOLDERS' EQUITY 201,446 202,836
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $1,906,881$1,885,553
PEOPLES BANCORP INC. SELECTED FINANCIAL INFORMATION
(in $000's, end June 30, March 31, Dec. 31, Sept. 30, June 30,
of period)2008 2008 2007 2007 2007
LOAN PORTFOLIO
Commercial, mortgage $499,043 $498,426 $513,847 $481,341 $468,241
Commercial, other 186,346180,523171,937174,753177,651
Real estate,
construction 53,170 72,326 71,794 83,714 96,690
Real estate, mortgage 234,870237,366237,641240,599243,080
Home equity lines
of credit 44,595 43,101 42,706 43,506 43,118
Consumer 83,605 81,108 80,544 80,661 77,482
Deposit account
overdrafts 3,223 2,879 2,472 2,047 2,147
Total loans 1,104,852 1,115,729 1,120,941 1,106,621 1,108,409
DEPOSIT BALANCES
Interest-bearing
deposits:
Retail
certificates
of deposit$557,406 $549,439 $499,684 $515,432 $517,910
Interest-bearing
transaction
accounts 202,063211,708191,359178,880179,430
Money market
deposit accounts 172,048156,206153,299147,848149,791
Savings accounts116,485114,433107,389112,507115,691
Brokered
certificates of
deposits39,781 39,756 59,589 57,507 66,601
Total interest-
bearing
deposits 1,087,783 1,071,542 1,011,320 1,012,174 1,029,423
Non-interest-
bearing
deposits 193,265177,449175,057171,319173,675
Total deposits 1,281,048 1,248,991 1,186,377 1,183,493 1,203,098
ASSET QUALITY
Nonperforming
assets:
Loans 90 days or
more past due $290 $438 $378 $190 $313
Nonaccrual loans 20,910 17,061 8,980 5,979 7,096
Total
nonperforming
loans 21,200 17,499 9,358 6,169 7,409
Other real estate
owned 411343343343213
Total
nonperforming
assets $21,611$17,842 $9,701 $6,512 $7,622
Allowance for loan
losses as a percent
of nonperforming
loans 71.8% 91.2% 168.0% 237.3% 198.3%
Nonperforming loans
as a percent of
total loans 1.92% 1.57% 0.83% 0.56% 0.67%
Nonperforming assets
as a percent of
total assets1.13% 0.94% 0.51% 0.34% 0.41%
Nonperforming assets
as a percent of
total loans and other
real estate owned 1.96% 1.60% 0.87% 0.59% 0.69%
Allowance for loan
losses as a percent
of total loans 1.38% 1.43% 1.40% 1.32% 1.33%
REGULATORY CAPITAL(a)
Tier 1 risk-based
capital12.10% 12.12% 11.91% 11.82% 11.74%
Total risk-based
capital ratio
(Tier 1 and
Tier 2)13.33% 13.43% 13.23% 13.04% 12.97%
Leverage ratio 8.72% 8.81% 8.48% 8.67% 8.67%
Tier 1 capital $159,242 $158,919 $154,933 $156,209 $155,361
Total capital
(Tier 1 and
Tier 2) $175,397 $176,083 $172,117 $172,263 $171,592
Total risk-
weighted assets $1,315,523 $1,310,895 $1,301,056 $1,321,367 $1,323,359
(a) June 30, 2008 data based on preliminary analysis and subject to
revision.
PEOPLES BANCORP INC. PROVISION FOR LOAN LOSSES INFORMATION
Three Months EndedSix Months Ended
June 30, March 31, June 30, June 30,
(in $000's) 20082008 2007 20082007
PROVISION FOR LOAN LOSSES
Provision for Overdraft
Privilege losses $160 $37 $136 $197$159
Provision for other loan
losses $6,605 $1,400 $711$8,005 $1,311
Total provision for loan
losses $6,765 $1,437 $847$8,202 $1,470
NET CHARGE-OFFS
Gross charge-offs $7,720 $1,638 $965$9,358 $2,610
Recoveries 231 436 297 667 1,323
Net charge-offs $7,489 $1,202 $668$8,691 $1,287
NET CHARGE-OFFS BY TYPE
Commercial $6,900$862 $523$7,761$811
Real estate294 160 (14) 455 (1)
Overdrafts 148 87 133 235 186
Consumer 148 101 29 249 295
Credit card (1) (8) (3) (9) (4)
Total net charge-offs $7,489 $1,202 $668$8,691 $1,287
Net charge-offs as a percent
of loans (annualized)2.70% 0.43%0.24% 1.57% 0.23%
PEOPLES BANCORP INC. SUPPLEMENTAL INFORMATION
(in $000's, end of June 30, March 31, Dec. 31, Sept. 30, June 30,
period) 2008 2008 2007 2007 2007
Trust assets under
management $770,714 $775,834 $797,443 $805,931 $766,417
Brokerage assets under
management $216,930 $221,340 $223,950 $218,573 $209,858
Mortgage loans serviced
for others $182,299 $178,763 $176,742 $176,380 $172,314
Employees (full-time
equivalent) 554 556 559 553 556
Announced treasury share
plans: (a)
Total shares
authorized for plan500,000 500,000 925,000 425,000 425,000
Shares purchased -13,60084,600 139,00070,000
Average price$-$21.59$24.25$24.05$26.79
(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. CONSOLIDATED AVERAGE BALANCE SHEET AND NET INTEREST
INCOME
Three Months Ended
June 30, 2008 March 31, 2008
Income/ Yield/Income/ Yield/
Balance Expense Cost Balance Expense Cost
ASSETS
Short-term investments $3,391 $17 2.17% $4,017 $32 3.11%
Investment
securities (a)598,111 7,991 5.35%581,638 7,810 5.37%
Gross loans (a) 1,114,474 18,954 6.81% 1,113,023 19,879 7.17%
Allowance for loan
losses (16,243) (16,240)
Total earning assets1,699,733 26,962 6.36% 1,682,438 27,721 6.61%
Intangible assets 67,39567,831
Other assets 127,190 128,307
Total assets1,894,318 1,878,576
LIABILITIES AND EQUITY
Interest-bearing
deposits:
Savings 115,625 140 0.49%108,525 122 0.45%
Interest-bearing
demand deposits 203,411 890 1.76%197,998 982 1.99%
Money market 165,592 816 1.98%152,202 1,058 2.80%
Brokered time 39,767 509 5.15% 53,334 695 5.24%
Retail time 549,642 5,426 3.97%523,929 5,608 4.31%
Total interest-bearing
deposits 1,074,037 7,781 2.91% 1,035,988 8,465 3.29%
Short-term borrowings 148,854 778 2.07%188,615 1,539 3.24%
Long-term borrowings 270,746 3,115 4.58%257,598 3,009 4.65%
Total borrowed funds 419,600 3,893 3.69%446,213 4,548 4.05%
Total interest-
bearing liabilities 1,493,637 11,674 3.13% 1,482,201 13,013 3.52%
Non-interest-bearing
deposits 180,399 172,994
Other liabilities 14,21416,889
Total liabilities 1,688,250 1,672,084
Stockholders' equity 206,068 206,492
Total liabilities and
equity$1,894,318$1,878,576
Net interest income/
spread (a) $15,288 3.23%$14,708 3.09%
Net interest margin (a)3.61% 3.51%
June 30, 2007
Income/ Yield/
Balance Expense Cost
ASSETS
Short-term investments $3,505 $44 4.98%
Investment securities (a) 540,6146,820 5.05%
Gross loans (a) 1,130,555 21,540 7.64%
Allowance for loan losses (14,656)
Total earning assets1,660,018 28,404 6.86%
Intangible assets 68,142
Other assets 128,315
Total assets1,856,475
LIABILITIES AND EQUITY
Interest-bearing deposits:
Savings 117,149 188 0.64%
Interest-bearing demand deposits 175,831 910 2.08%
Money market 147,3851,451 3.95%
Brokered time 67,637 867 5.14%
Retail time 529,4815,931 4.49%
Total interest-bearing deposits 1,037,4839,347 3.61%
Short-term borrowings 220,7582,841 5.09%
Long-term borrowings 210,6572,559 4.81%
Total borrowed funds 431,4155,400 4.96%
Total interest-bearing liabilities 1,468,898 14,747 4.01%
Non-interest-bearing deposits 173,565
Other liabilities 15,495
Total liabilities 1,657,958
Stockholders' equity 198,517
Total liabilities and equity $1,856,475
Net interest income/spread (a) $13,657 2.85%
Net interest margin (a) 3.31%
(a) Information presented on a fully tax-equivalent basis.
Six Months Ended
June 30, 2008 June 30, 2007
Income/ Yield/Income/ Yield/
Balance Expense Cost Balance Expense Cost
ASSETS
Short-term investments $3,704 $49 2.68% $3,693 $90 4.89%
Investment
securities (a) 589,876 15,801 5.36%549,902 14,100 5.13%
Gross loans (a) 1,113,748 38,833 6.98% 1,130,041 42,909 7.64%
Allowance for loan
losses (16,241) (14,693)
Total earning assets1,691,087 54,683 6.49% 1,668,943 57,099 6.88%
Intangible assets 67,61368,364
Other assets 127,703 128,455
Total assets1,886,403 1,865,762
LIABILITIES AND EQUITY
Interest-bearing
deposits:
Savings 112,075 261 0.47%115,649 354 0.62%
Interest-bearing
demand deposits 200,705 1,873 1.87%176,300 1,756 2.01%
Money market 158,897 1,874 2.37%144,410 2,820 3.94%
Brokered time 46,550 1,204 5.19% 69,069 1,764 5.15%
Retail time 536,785 11,034 4.12%530,622 11,780 4.48%
Total interest-
bearing deposits1,055,012 16,246 3.10% 1,036,050 18,474 3.60%
Short-term
borrowings 168,734 2,317 2.72%234,967 6,056 5.14%
Long-term
borrowings 264,172 6,124 4.61%208,513 5,056 4.86%
Total borrowed
funds432,906 8,441 3.87%443,480 11,112 4.99%
Total interest-
bearing
liabilities 1,487,918 24,687 3.32% 1,479,530 29,586 4.02%
Non-interest-bearing
deposits 176,696 172,351
Other liabilities 15,50915,817
Total liabilities 1,680,123 1,667,698
Stockholders' equity 206,280 198,064
Total liabilities and
equity$1,886,403$1,865,762
Net interest income/
spread (a) $29,996 3.17%$27,513 2.86%
Net interest margin (a)3.56% 3.32%
SOURCE Peoples Bancorp Inc.
