EXHIBIT 99
NEWS RELEASE
FOR IMMEDIATE RELEASE Contact: John W. Conlon, Chief Financial Officer
--------------------- (740) 373-3155
July 14, 2000
PEOPLES BANCORP REPORTS 14% INCREASE
IN SECOND QUARTER EARNINGS PER SHARE
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MARIETTA, Ohio - Today Peoples Bancorp Inc. (Nasdaq: PEBO) announced
second quarter earnings of $0.41 per diluted share, up 13.9% over results of
operations from the second quarter of 1999, as growth in net interest income and
non-interest revenues contributed to increased earnings. For the six months
ended June 30, 2000, earnings per diluted share reached $0.84, an increase of
$0.11 (or 15.1%) over the first half of last year.
Net income for the three months ended June 30, 2000 , totaled $2.7
million, up $0.15 million (or 5.8%) from the same period last year. On a
year-to-date basis, net income reached $5.6 million through June 30, 2000, up
$0.4 million (or 7.4%) compared to the first half of 1999. Cash basis earnings
per share, which exclude the effects of intangible assets and related
amortization expenses, increased to $0.47 in the second quarter of 2000, up
$0.05 (or 11.9%) compared to the same period in 1999. Cash basis earnings per
share for the six months ended June 30, 2000, totaled $0.96, an increase of
$0.10 (or 11.6%) over the same period last year.
Earnings in the second quarter of 2000 were impacted by net losses on
sales of investment securities and disposals of capital assets. Pre-tax net
losses on these transactions totaled $185,000 and decreased net income in the
second quarter of 2000 by $120,000, or $0.02 per share.
"We are pleased with second quarter performance," commented Robert E.
Evans, Peoples Bancorp's President and CEO. "Our core operating results reflect
strong earnings streams, as we continue to invest in client-focused initiatives
and processes designed to quickly and professionally serve our client's every
financial need."
Net losses on disposals of assets were generated from Peoples Bancorp's
investment in a larger central processing unit that will enhance the Company's
processing capabilities. Management believes the investment will better support
the Company's integrated sales processes and improve client service though
speedier delivery of products and services.
Net interest income grew $0.8 million (or 8.1%) to $10.2 million in the
second quarter of 2000 compared to the same period a year earlier, due primarily
to earning asset growth strategies implemented in 1999 and internal loan growth
during the last six months. In the second quarter of 2000, Peoples Bancorp's
total loans grew $28 million (or 2.6%) to $701.4 million at June 30, 2000. The
Company's allowance for loan losses at June 30, 2000, totaled $10.9 million (or
1.56% of total loans), a quarterly increase of $0.3 million. Loan loss provision
expense increased $153,000 in the second quarter of 2000 compared to the same
period last year, due primarily to loan growth. Peoples Bancorp's asset quality
continues to be above peer group levels and reflects the overall quality of the
Company's loan portfolio.
Due primarily to growth of investment and insurance commissions, as
well as electronic banking revenues, non-interest income exhibited strong growth
in the second quarter of 2000, as revenues increased $0.4 million (or 23.0%) to
$2.2 million compared to 1999's second quarter total of $1.8 million. For the
six months ended June 30, 2000, non-interest income totaled $4.4 million, an
increase of $0.7 million (or 19.2%) compared to the same period in 1999.
Non-interest expense totaled $7.8 million for the three months ended June 30,
2000, and $15.3 million for the first half of 2000, an increase of $0.7 million
(or 10.2%) and $2.0 million (or 15.3%) compared to the same periods last year.
Non-interest expense increased due to the impact of debt service costs
associated with the Company's issuance of $30 million of 8.62% Capital
Securities in April, 1999, as well as recent market expansion and associated
costs to provide enhanced customer services such as investments and insurance
products.
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Peoples Bancorp Inc. is a diversified financial services company with
$1.1 billion in assets. The Company's lead subsidiary is Peoples Bank, which
offers complete banking products and services through 38 financial service
locations and 25 ATM's in Ohio, West Virginia, and Kentucky. Peoples Bank also
makes available other financial services through Peoples Investments, which
provides customer-tailored solutions for fiduciary needs, investment
alternatives, and asset management needs (securities are offered exclusively
through Raymond James Financial Services, member NASD/SIPC, an independent
broker/dealer located at Peoples Bank). Peoples Bank also provides life,
property and casualty insurance products and services through Peoples Insurance
Agency, Inc. Peoples Bancorp's common stock is traded through the Nasdaq
National Market System under the symbol PEBO. Learn more about Peoples Bancorp
or enroll in Peoples OnLine Connection, Peoples Bank's internet banking product,
at www.peoplesbancorp.com.
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<CAPTION>
PEOPLES BANCORP INC. (Nasdaq: PEBO)
Financial Highlights (Unaudited - in thousands, except per share data)
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Three Months Ended Six Months Ended
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June 30, June 30,
PER SHARE DATA 2000 1999 2000 1999
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Net income per share:
<S> <C> <C> <C> <C>
Basic $ 0.41 $ 0.37 $ 0.85 $ 0.75
Diluted 0.41 0.36 0.84 0.73
Cash basis earnings - diluted (a) 0.47 0.42 0.96 0.86
Dividends declared per share $ 0.14 $ 0.13 $ 0.28 0.24
Weighted average shares outstanding:
Basic 6,515,837 6,910,065 6,520,208 6,928,517
Diluted 6,600,252 7,087,693 6,615,283 7,098,102
PERFORMANCE AND ASSET QUALITY RATIOS
Return on average equity 15.13% 11.90% 15.41% 12.01%
Cash basis return on average equity (a) 23.75% 18.56% 24.20% 18.74%
Return on average assets 1.00% 1.04% 1.04% 1.12%
Cash basis return on average assets (a) 1.17% 1.26% 1.21% 1.35%
Net interest margin (fully tax equivalent) 4.20% 4.35% 4.22% 4.45%
Efficiency ratio 56.62% 55.26% 56.38% 53.34%
Net loan chargeoffs as a percentage of average loans 0.05% 0.03% 0.07% 0.05%
End of period:
Nonperforming assets as a percentage of total assets (b) 0.23% 0.22% 0.23% 0.22%
Allowance for loan losses as a percentage of total loans 1.58% 1.70% 1.58% 1.70%
CONSOLIDATED AVERAGE BALANCES
Average gross loans $ 686,606 $ 587,808 $ 674,753 579,169
Average earning assets 999,137 899,365 988,313 848,805
Average total assets 1,078,382 976,482 1,067,579 924,543
Average non-interest bearing deposits 82,588 77,822 81,456 76,953
Average interest bearing deposits 652,206 626,543 651,140 628,338
Average stockholders' equity $ 71,510 $ 86,909 $ 72,175 86,478
PERIOD END CAPITAL RATIOS
Tier 1 risk-based capital 12.53% 15.56% 12.53% 15.56%
Total risk-based capital ratio (Tier 1 and Tier 2) 14.11% 13.97% 14.11% 13.97%
Leverage ratio 8.46% 9.54% 8.46% 9.54%
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<FN>
(a) Excludes after-tax impact of intangible amortization expense and removes
balance sheet effect of intangible assets acquired through use of purchase
accounting for acquisitions.
(b) Nonperforming assets include loans 90 days past
due and accruing, nonaccrual loans, and other real estate owned.
</FN>
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<TABLE>
<CAPTION>
PEOPLES BANCORP INC. CONDENSED CONSOLIDATED BALANCE SHEETS
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(in thousands) June 30, December 31,
2000 1999
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ASSETS
<S> <C> <C>
Cash and cash equivalents $ 27,992 $ 43,751
Available-for-sale investment securities, at estimated fair value 326,660 328,306
Loans, net of unearned interest 701,413 659,833
Allowance for loan losses (10,914) (10,264)
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Net loans 690,499 649,569
Bank premises and equipment, net 15,791 15,321
Other assets 40,410 38,503
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TOTAL ASSETS $ 1,101,352 $ 1,075,450
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LIABILITIES
Non-interest bearing deposits $ 79,687 $ 83,267
Interest bearing deposits 650,215 644,940
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Total deposits 729,902 728,207
Federal funds purchased, securities sold under repurchase agreements,
and other short term borrowings 122,785 87,439
Long-term borrowings 138,674 150,338
Accrued expenses and other liabilities 8,108 7,606
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TOTAL LIABILITIES 999,469 973,590
Guaranteed preferred beneficial interests in junior subordinated debentures 29,003 28,986
STOCKHOLDERS' EQUITY
Common stock, no par value (6,666,859 shares issued and 6,527,092
outstanding at June 30, 2000) 66,296 65,043
Accumulated comprehensive income, net of deferred income taxes (9,941) (7,654)
Retained earnings 19,566 26,241
Treasury stock, at cost (139,767 shares at June 30, 2000) (3,041) (10,756)
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TOTAL STOCKHOLDERS' EQUITY 72,880 72,874
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TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 1,101,352 $ 1,075,450
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<CAPTION>
PEOPLES BANCORP INC. CONDENSED STATEMENTS OF INCOME
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(in thousands) Three Months Ended Six Months Ended
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June 30, June 30,
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2000 1999 2000 1999
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<S> <C> <C> <C> <C>
Interest income $ 20,924 $ 17,622 $ 41,036 $ 33,607
Interest expense 10,699 8,162 20,707 15,404
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Net interest income 10,225 9,460 20,329 18,203
Provision for loan losses 600 447 1,122 984
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Net interest income after provision for loan losses 9,625 9,013 19,207 17,219
Net (loss) gain on securities transactions (45) 1 (56) 1
Net (loss) gain on disposal of assets (140) (5) (145) (5)
Other non-interest income 2,233 1,815 4,361 3,659
Amortization of intangibles 571 657 1,142 1,313
Other non-interest expense 7,223 6,418 14,206 11,997
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Income before income taxes 3,879 3,749 8,019 7,564
Income taxes 1,179 1,201 2,458 2,385
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Net income $ 2,700 $ 2,548 $ 5,561 $ 5,179
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END OF RELEASE
