News Releases

Mark Bradley Resigns; David Mead Named Interim CEO And President; David Wesel Named COO
Peoples Bancorp Inc. Announces Second Quarter Results
Peoples Bancorp Inc. Declares Second Quarter 2010 Dividend
Peoples Bancorp Inc. Announces First Quarter Results
Peoples Bancorp Inc. Declares First Quarter 2010 Dividend
Peoples Bancorp Inc. Nominates Board Board Members for Re-Election
Peoples Bancorp Inc. Names Executive Vice President, Retail Banking
Peoples Bancorp Inc. Announces Fourth Quarter and 2009 Results

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MARK BRADLEY RESIGNS;
DAVID MEAD NAMED INTERIM CEO AND PRESIDENT;
DAVID WESEL NAMED COO
___________________________________________

August 2, 2010

Contact: Rhonda L. Mears
General Counsel
(740) 373-7723

MARIETTA, Ohio – Peoples Bancorp Inc. Director David L. Mead was named Interim Chief Executive Officer and President by the Board of Directors today to succeed Mark F. Bradley, who resigned to pursue other interests. The Board thanked Bradley for his service during a challenging and difficult period for Peoples and financial institutions across the nation.

The Board also named David T. Wesel, 49, an Executive Vice President, to the newly created position of Chief Operating Officer.

Mead, 55, a CPA and Director since 2006, is a veteran of 23 years in the banking industry, and most recently served as Vice President for Business Affairs at Otterbein College in Westerville, Ohio.

Board Chair Richard Ferguson said, “The Board is aggressively charting a course to further strengthen shareholder value in Peoples, which enjoys both strong capitalization and a strong market position in the Southeastern Ohio and Northern West Virginia and Eastern Kentucky areas. We appreciate Mr. Mead’s willingness to provide leadership during this interim period. We also have great confidence in Mr. Wesel and have created the Chief Operating Officer position to provide stronger, more consolidated leadership at the top of the organization to position Peoples for a stronger future.

“The Board also launched today a search process for a permanent CEO and President, and believes that exceptional leadership is available in the marketplace capable of leading Peoples to new heights,” Ferguson added. He said the search process will be managed by the Executive Committee of the Board, chaired by Mead as Interim CEO and President. It is expected to take between three and six months to have a new CEO and President in place.

Mead said, “I am pleased to be in a position to provide interim leadership to Peoples, which is a uniquely strong regional franchise with unlimited future potential. While the Board contemplates setting an even more ambitious strategic course in the future, for the immediate future we will place emphasis on continued sharp execution of our existing strategic plan and goals. We do not expect to make any immediate major organizational changes.

“As a director these past few years, I have come to have a strong appreciation for the quality of the Bank’s staff, and I look forward to working with each of them to keep Peoples moving forward during this interim period.”

In addition to serving as the new Chief Operating Officer, David Wesel will continue to serve as Executive Vice President for Investment and Insurance Services. He has been a Bank officer since 2004. The Board’s creation of the COO position follows its long-term strategic plan to enhance management structure and provide valuable leadership to Peoples’ varied financial service units. As COO, Mr. Wesel will plan, organize and control day-to-day activities of Peoples, collaborating with the CEO on overall administration and strategic direction of the Bank. He will also manage the Bank’s family of financial service units.

Mr. Wesel said, “I look forward to continuing to work with all of Peoples’ associates and with the interim CEO as we continue progress toward our operational and financial goals.”

Peoples Bancorp Inc. is a diversified financial products and services company with $2.0 billion in assets, 47 locations and 39 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, LLC, which includes the Putnam and Barengo divisions. 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.


David L. Mead, Interim Chief Executive Officer and President	David T. Wesel, Chief Operating Officer

END OF RELEASE

PEOPLES BANCORP INC. ANNOUNCES
SECOND QUARTER RESULTS
___________________________________________

July 20, 2010

Contact: Edward G. Sloane
Chief Financial Officer and Treasurer
(740) 373-3155

MARIETTA, Ohio - Peoples Bancorp Inc. (“Peoples”) (NASDAQ: PEBO) today announced net income available to common shareholders of $2.8 million for the second quarter of 2010, up 19% compared to $2.3 million for the prior year second quarter, representing diluted earnings per common share of $0.27 and $0.23, respectively. First quarter 2010 (or “linked quarter”) net income available to common shareholders was $0.8 million, or $0.08 per diluted common share. On a year-to-date basis, net income available to common shareholders was $3.6 million through June 30, 2010, versus $6.2 million for the same period a year ago, representing diluted earnings per common share of $0.34 and $0.60, respectively.
Summary points regarding second quarter results:

Nonperforming assets increased $8 million and comprised 2.21% of total assets at June 30, 2010, versus 1.79% at March 31, 2010. During the second quarter, a single $14 million commercial real estate loan relationship was identified as impaired, resulting in the loans being written down by $4 million and the remaining $10 million being placed on nonaccrual status. Partially offsetting this increase in nonaccrual loans were $1.3 million in write-downs on other real estate owned (“OREO”) held at June 30 due to declines in property values. Second quarter 2010 net loan charge-offs were $4.8 million, which included the $4 million charge-down associated with the previously mentioned nonaccrual commercial real estate loan relationship. At June 30, 2010, the allowance for loan losses stood at $27.2 million, or 71% of nonperforming loans. Second quarter 2010 provision for loan losses was $5.5 million, or 2.11% of average loans on an annualized basis.
In connection with continuing efforts to manage the risk profile of the investment portfolio and overall balance sheet, Peoples sold $48 million of investment securities during the second quarter, at a net gain of $3.0 million. In addition, Peoples sold a $10 million mortgage-backed security in early July, at an $0.8 million loss. Since the loss on the security sold in July existed at June 30, Peoples recognized the entire amount as an impairment charge in the second quarter of 2010.
Peoples’ capital levels remained strong and substantially higher than the minimum regulatory amount needed to be considered “well capitalized”. Total Risk-Based Capital ratio was 17.44% at quarter-end, while tangible common equity was 7.18% of tangible assets.
Net interest income of $15.2 million for the second quarter of 2010 was down slightly from the linked quarter, while net interest margin remained relatively stable at 3.49%. Earning assets decreased in the second quarter due to commercial loan payoffs and a lack of attractive long-term investments, which pressured net interest income because of limited opportunities to reduce funding costs.
Non-interest income totaled $7.8 million in the second quarter, a 3% decline from the linked quarter primarily due to recognizing $0.6 million of performance-based insurance income in the first quarter. Non-interest income was lower year-over-year due mostly to reduced mortgage banking activity.
Second quarter 2010 non-interest expense was $14.3 million, down 2% versus the prior quarter and 8% year-over-year. Both decreases reflected reductions in various operating expenses attributable to ongoing cost control initiatives. Lower costs associated with foreclosed real estate contributed to the linked quarter decline, while FDIC insurance expense was down substantially versus a year ago, due to the impact of the special assessment imposed on all FDIC-insured depository institutions in 2009.
Retail deposit balances decreased $36 million during the second quarter of 2010, due to a $38 million decline in interest-bearing deposit balances, partially offset by a $2 million increase in non-interest-bearing balances. Much of the second quarter decrease in interest-bearing balances was the result of a single commercial customer lowering its deposit balances by $20 million, coupled with planned reductions in higher-cost, non-core certificates of deposits (“CDs”) intended to control funding costs. Compared to year-end 2009, total retail deposit balances were $7 million higher at June 30, 2010. During this period, Peoples reduced borrowed funds by 10% compared to year-end 2009.
Total loan balances decreased $35 million during the second quarter of 2010, primarily reflecting a targeted reduction in commercial real estate loans to improve Peoples’ overall balance sheet risk profile. As a result, second quarter payoffs exceeded new production. Contributing to the second quarter decline was the expected payoff of a single $4 million commercial real estate loan, plus the planned sale of $3 million in commercial real estate loans, of which $2 million were on nonaccrual, which caused the loans to be classified as held-for-sale and written down to their estimated fair value at June 30.

“We are pleased with second quarter results, which were in line with our expectations considering the low interest rate environment and still challenging economic conditions,” said Mark F. Bradley, President and Chief Executive Officer. “We successfully maintained our net revenue stream as a result of controlling operating costs and proactively managing our balance sheet risk profile. Second quarter provision for loan losses also was lower than recent quarters. We believe credit issues continue to stabilize, reflected by positive trends in asset quality metrics over the last few quarters and the isolated nature of the second quarter increase in nonperforming assets.”

Second quarter 2010 net interest income and margin were $15.2 million and 3.49%, respectively, down slightly from the linked quarter, as decreased interest income outpaced the reduction in interest expense. Year-over-year, net interest income was down slightly for both the three and six months ended June 30, 2010, while net interest margin expanded modestly for both periods. Peoples’ interest income continues to be pressured by lower loan balances and lack of attractive long-term investments given management’s risk-return criteria, coupled with the impact of lower reinvestment rates in the current interest rate environment. In comparison, Peoples’ interest expense continues to benefit from management’s ongoing efforts to decrease funding costs by repaying wholesale funding and more selectively pricing higher-cost, non-core deposits.

“Net interest margin was relatively stable in the second quarter of 2010, while lower earning assets reduced net interest income,” said Edward G. Sloane, Chief Financial Officer and Treasurer. “We believe downward pressure on net interest income and margin could continue in the second half of 2010, unless the Federal Reserve takes steps to increase interest rates or more attractive investment opportunities present themselves. As such, our balance sheet strategies will continue to emphasize maintaining good liquidity and changing our funding mix by repaying maturing borrowings with low-cost core deposits and excess cash.”

In the second quarter of 2010, total non-interest income was $7.8 million versus $8.0 million last quarter, due mostly to the recognition of annual performance-based insurance revenue of $585,000 earned during the first quarter. Compared to the prior year, non-interest income was down 6% in the second quarter of 2010 and 4% through six months of 2010, largely a result of decreased mortgage banking income attributable to lower gains on sales of residential real estate loans. Insurance revenues continued to be adversely effected by the impact of economic conditions on commercial insurance needs and competitive pricing within the insurance industry, which contributed to the year-over-year decline in total non-interest income.

Non-interest expense totaled $14.3 million for the second quarter of 2010, down 2% from the linked quarter and 8% year-over-year. Through six months of 2010, total non-interest expense was $28.9 million versus $30.0 million for the first half of 2009. The linked quarter decline was largely attributable to moderately lower expenses for OREO, while lower FDIC insurance expense accounted for most of the year-over-year decreases. Second quarter 2009 FDIC insurance expense included an additional $930,000 for the special assessment imposed on all FDIC-insured institutions. Non-interest expense in 2010 also benefited from reductions in several major non-interest expenses in connection with ongoing cost control initiatives.

During the second quarter of 2010, Peoples’ ongoing management of its balance sheet interest rate risk profile resulted in the sale of investment securities with an aggregate book value of $48.2 million during the quarter at a $3.0 million net gain and a single $10.3 million security at a $0.8 million loss in early July. The securities sold consisted of U.S agency mortgage-backed securities and U.S. government-backed student loan pools and were selected based upon their current low yields and interest rate risk characteristics. In accordance with generally accepted accounting principles, Peoples recorded the entire loss related to the July sale as an other-than-temporary impairment in the second quarter of 2010 since the security had a loss at June 30 and was sold prior to recovery.

Gross portfolio loan balances decreased $35.2 million during the second quarter, to $1.02 billion at June 30, 2010. Much of this decline was the result of commercial loan payoffs exceeding new production. Overall demand for new loans has also been impacted by economic conditions, which has contributed to the steady declines in consumer and real estate loans in recent quarters. At June 30, 2010, Peoples’ loans held-for-sale included $3.4 million of commercial loans secured by commercial real estate located outside Peoples’ primary market area. Included in these loans were $2.1 million which were identified as impaired and placed on nonaccrual status in 2009. Peoples recorded a $94,000 loss to reduce the carrying value of these loans to their estimated fair value at June 30, 2010.

Total nonperforming assets were $43.4 million, or 2.21% of total assets, at June 30, 2010, versus $35.9 million, or 1.79%, at March 31, 2010 and $40.7 million, or 2.03%, at year-end 2009. During the second quarter, a single $14.2 million commercial loan relationship was identified as being impaired and placed on nonaccrual. The loans comprising this relationship are secured by real estate and were written down by $3.8 million to the estimated net realizable value of the underlying collateral as of June 30, 2010. The overall increase in nonperforming assets was partially offset by the payoff of an existing $3.9 million nonaccrual commercial real estate loan during the second quarter and $1.3 million write-downs on OREO at June 30, 2010.

Net loan charge-offs were $4.8 million, or 1.86% of average loans on an annualized basis, for the second quarter of 2010, compared to $7.2 million, or 2.76%, for the linked quarter and $5.7 million, or 2.05%, for the second quarter of 2009. Second quarter 2010 charge-offs included a $3.8 million write-down on the impaired commercial real estate loan relationship identified during the quarter, of which $1.4 million was provided for in prior quarters through the allowance for loan losses. On a year-to-date basis, net charge-offs were $12.0 million through June 30, 2010, or 2.31% of average loans on an annualized basis, versus $8.6 million, or 1.56%, for the same period a year ago. Peoples’ allowance for loan losses increased $0.6 million in the second quarter of 2010, to $27.2 million, or 2.66% of total loans, at June 30, 2010. To maintain the adequacy of the allowance for loan losses, Peoples recorded a second quarter 2010 provision for loan losses of $5.5 million versus $6.5 million last quarter and $4.7 million in the second quarter of 2009.

“Overall, we believe positive progress is being made towards improving our overall asset quality, despite the increase in nonperforming assets,” commented Sloane. “The continued weakness in general economic conditions and corresponding impact on commercial borrowers resulted in some increase in our allowance for loan losses. Reducing nonperforming assets remains a key priority for the remainder of 2010.”

At June 30, 2010, total retail deposit balances were down $36.2 million versus the prior quarter-end, but $6.6 million higher than year-end 2009. During the second quarter, a single commercial customer lowered its deposit balances by $20 million for corporate purposes, of which $10 million were CDs and the remainder was held in a money market account, accounting for most of the linked quarter decrease in retail deposits. Contributing to the reduction in deposit balances were Peoples’ efforts to control funding costs by pricing higher-cost, non-core deposits more selectively. As a result of these actions, retail CD balances decreased $34.4 million in the second quarter and $25.2 million in the first half of 2010. Money market balances, although down $5.7 million in the second quarter, were up $27.2 million on a year-to-date basis. Non-interest-bearing balances increased $2.2 million for the quarter and $5.6 million since year-end 2009, totaling $203.6 million at June 30, 2010. Total borrowed funds were essentially unchanged at the end of the second quarter of 2010 compared to the linked quarter but were down $33.3 million, or 10%, compared to December 31, 2009.

Peoples Bancorp Inc. is a diversified financial products and services company with $2.0 billion in assets, 47 locations and 39 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, LLC. 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 2010 results of operations today at 11:00 a.m., Eastern Daylight Savings 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:
Certain statements made in this news release regarding Peoples’ financial condition, results of operations, plans, objectives, future performance and business, 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 1995. These forward-looking statements are identified by the fact they are not historical facts and include words such as “anticipate”, “could”, “may”, “feel”, “expect”, “believe”, “plan”, and similar expressions.

These forward-looking statements reflect management’s current expectations based on all information available and its knowledge of Peoples’ business and operations. Additionally, Peoples’ financial condition, results of operations, plans, objectives, future performance and business are subject to risks and uncertainties that may cause actual results to differ materially. These factors include, but are not limited to: (1) continued 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 and weakening in the real estate market, either nationally 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, including in particular the Restoring American Financial Stability Act of 2010 and related regulations required to be promulgated, which may adversely affect the business of Peoples and its subsidiaries; (8) changes in accounting standards, policies, estimates or procedures may adversely affect Peoples’ reported financial condition or results of operations; (9) adverse changes in the conditions and trends in the financial markets, which may adversely affect the fair value of securities within Peoples’ investment portfolio; (10) a delayed or incomplete resolution of regulatory issues that could arise; (11) Peoples’ ability to receive dividends from its subsidiaries; (12) Peoples’ ability to maintain required capital levels and adequate sources of funding and liquidity; (13) the impact of larger or similar financial institutions encountering problems, which may adversely affect the banking industry and/or Peoples; (14) the impact of reputational risk created by these developments on such matters as business generation and retention, funding and liquidity; (15) 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 (16) 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, 2009.

Peoples encourages readers of this news release to understand forward-looking statements to be strategic objectives rather than absolute targets of future performance. 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.

As required by U.S. GAAP, Peoples is required to evaluate the impact of subsequent events through the filing date of its June 30, 2010 consolidated financial statements on Form 10-Q with the SEC. Accordingly, subsequent events could occur that may cause Peoples to update its critical accounting estimates and to revise its financial information from that which is contained in this news release.

Please click here to view the complete earnings release.

END OF RELEASE

PEOPLES BANCORP INC.
DECLARES SECOND QUARTER 2010 DIVIDEND

___________________________________________

June 24, 2010

Contact: Mark Bradley
President and Chief Executive Officer
(740) 373-3155

MARIETTA, Ohio - The Board of Directors of Peoples Bancorp Inc. (NASDAQ: PEBO) today declared a cash dividend of $0.10 per common share payable July 20, 2010, to common shareholders of record on July 6, 2010.
The second quarter dividend represents a payout of approximately $1.1 million based on 10.5 million common shares currently outstanding and an annualized dividend yield of 2.79% based on the closing stock price of Peoples’ common shares of $14.35 on June 23, 2010.
Peoples’ capital continues to be significantly higher than regulatory minimums needed to be considered “well capitalized”. At March 31, 2010, Peoples’ Tier 1 Common, Total Tier 1 and Total Risk-Based Capital ratios were 10.60%, 15.51% and 16.83%, compared to the well capitalized minimum ratios of 4%, 6% and 10%, respectively.
Peoples also announced it intends to release results of operations for the second quarter of 2010 before the market opens on Tuesday, July 20, 2010, and host a facilitated conference call at 11:00 a.m. Eastern Daylight Savings Time on the same date. A simultaneous Webcast of the conference call audio will be available on Peoples’ website, www.peoplesbancorp.com, in the “Investor Relations” section.
Peoples Bancorp Inc. is a diversified financial products and services company with $2.0 billion in assets, 47 locations and 39 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, LLC, which includes the Putnam and Barengo divisions. 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.

END OF RELEASE

PEOPLES BANCORP INC. ANNOUNCES
FIRST QUARTER RESULTS
___________________________________________

April 20, 2010

Contact: Edward G. Sloane
Chief Financial Officer and Treasurer
(740) 373-3155

MARIETTA, Ohio - Peoples Bancorp Inc. (“Peoples”) (NASDAQ: PEBO) today announced net income available to common shareholders of $0.8 million for the first quarter of 2010, representing diluted earnings per common share of $0.08, comparable to the fourth quarter of 2009 (or “linked quarter”). First quarter 2009 net income available to common shareholders was $3.9 million, or $0.37 per diluted common share.

Summary points regarding first quarter results:

- Nonperforming assets decreased $5 million, or 12%, and comprised 1.79% of total assets at March 31, 2010, versus 2.03% at year-end 2009, due mostly to write-downs on existing nonaccrual commercial loans. These write-downs produced a moderate increase in net loan charge-offs versus the prior quarter, to $7.2 million. At March 31, 2010, the allowance for loan losses stood at $26.6 million, or 89% of nonperforming loans compared to 79% at year-end 2009. First quarter 2010 provision for loan losses was $6.5 million, or 2.49% of average loans on an annualized basis.

- First quarter 2010 net charge-offs and provision for loan losses included the impact of a $1.5 million write-down on an existing $5.4 million nonaccrual commercial real estate loan. This write-down resulted from Peoples’ negotiating a reduced payoff amount in connection with a sale of the underlying collateral, which is expected to occur during the second quarter of 2010.

- Peoples recognized a non-cash pre-tax other-than-temporary impairment charge of $1.0 million ($0.6 million or $0.06 per common share after-tax) in the first quarter of 2010, which represented the write-off of Peoples’ remaining investment in collateralized debt obligation securities.

- Peoples’ capital levels remained strong and substantially higher than the regulatory minimum amount needed to be considered “well capitalized”. Total Risk-Based Capital ratio was 16.83% at quarter-end, while tangible common equity was 7.07% of tangible assets.

- Net interest income and margin were stable at $15.4 million and 3.52%, as proactive efforts to lower funding costs by reducing higher-cost, non-core deposits offset the continued downward pressure on asset yields from historically low market interest rates.

- First quarter non-interest income increased 3% from the linked quarter, to $8.0 million, driven mostly by continued improvement in fiduciary income and recognition of performance based insurance income, which is received annually in the first quarter. Year-over-year, lower non-interest income reflected reduced secondary market loan production and related gains on sales of loans from decreased mortgage refinancing activity in 2010.

- Total non-interest expense was $14.6 million, matching the prior quarter and consistent with the first quarter of 2009, as reductions in various operating expenses attributable to ongoing cost control initiatives were offset by costs associated with foreclosed real estate and higher FDIC insurance expense versus a year ago.

- Retail deposit balances grew $43 million, or 3%, during the first quarter of 2010, due mostly to a 13% increase in money market balances. Non-interest-bearing deposits increased 2%, topping $200 million at quarter-end. These funds were used to reduce borrowed funds by 10% compared to year-end 2009.

- Total loan balances were essentially unchanged during the first quarter of 2010, as new loan production was matched by charge-offs on impaired commercial loans and normal loan paydowns.

“Overall, we believe first quarter results reflect success in several key areas,” said Mark F. Bradley, President and Chief Executive Officer. “We made good progress towards our goal of reducing problem loans, while maintaining sound capital, liquidity and loan loss reserve positions. Our core earnings stream remained solid due to cost control efforts and stable revenues. While investment impairment losses reduced earnings, our exposure to high risk securities within the investment portfolio was significantly reduced.”

In the first quarter of 2010, Peoples maintained net interest income and margin at $15.4 million and 3.52%, respectively, comparable to both the linked and prior year quarters, as reduced interest expense was matched by decreased interest income. First quarter 2010 interest income was down 4% versus the fourth quarter of 2009 and 11% compared to first quarter 2009, reflecting the impact of lower reinvestment rates on earning asset yields in the current interest rate environment. In comparison, first quarter 2010 interest expense continues to benefit from management’s ongoing efforts to decrease funding costs by repaying wholesale funding and more selectively pricing higher-cost non-core deposits.

“We are pleased with a stable net interest income and margin considering the low interest rate environment,” said Edward G. Sloane, Chief Financial Officer and Treasurer. “Our near-term balance sheet strategies will include potential modest deleveraging given the lack of attractive long-term investments and prospects of limited loan growth. Consequently, we will continue to seek opportunities to lower overall funding costs through further reductions in non-core funding sources to minimize the impact on net interest margin.”

Non-interest income totaled $8.0 million for the first quarter of 2010, compared to $7.8 million and $8.2 million for the fourth and first quarters of 2009, respectively. Trust and investment income increased 26% on a linked quarter basis and 47% year-over-year, due to continued improvement in market value of managed assets, coupled with recognition of $255,000 in non-recurring estate management fees. These gains were offset by decreased mortgage banking income attributable to lower gains on sales of residential real estate loans, as refinancing activity slowed. Non-interest income also was impacted by recognition of annual performance based insurance revenue received during the first quarter, which totaled $585,000 in 2010 versus $768,000 in 2009.

First quarter 2010 non-interest expense was $14.6 million, equaling the prior quarter and flat year-over-year. During the first quarter of 2010, Peoples incurred additional expenses for other real estate owned (“OREO”) relating to two large commercial properties added in late fourth quarter 2009, as well as modestly higher FDIC insurance expense compared to the same period a year ago. The overall impact of these items on total non-interest expense was offset by reductions in other major non-interest expenses in response to various cost control initiatives implemented in the second half of 2009.

“A key part of our 2010 operating goals involves strategically reducing operating expenses and improving operating efficiencies,” said Sloane. “Although total non-interest expense was impacted by problem loan workout costs, other operating expense categories were in line with our expectations for the first quarter.”

In the first quarter of 2010, Peoples recorded a $1.0 million other-than-temporary impairment (“OTTI”) loss related to two equity tranche collateralized debt obligation (“CDO”) investment securities, consisting mostly of bank-issued trust preferred securities. Management concluded these investments were total losses based upon its updated evaluation of the credit quality of the underlying issuers during the first quarter and resulting estimates of cash flows to be received from the securities. With the first quarter 2010 OTTI loss, Peoples no longer has any exposure to CDO investments within its portfolio. Further, these CDO securities were the only securities in Peoples’ investment portfolio identified by management as possessing a substantial risk of loss.

Peoples’ income tax expense of $111,000 for the first quarter of 2010 included the entire $345,000 tax benefit associated with the OTTI loss recognized during the quarter. Management anticipates Peoples’ effective tax rate to approximate 19% for each of the remaining three quarters of 2010.

At March 31, 2010, gross portfolio loan balances totaled $1.05 billion, basically unchanged since December 31, 2009. During the first quarter of 2010, Peoples grew commercial loans, which was matched by reductions in consumer and residential real estate loan balances. Loan balances also were impacted by charge-offs on several existing impaired commercial loans, which were written down to estimated net realizable value of the underlying collateral.

First quarter 2010 net loan charge-offs were $7.2 million, or 2.76% of average loans on an annualized basis, compared to $5.7 million, or 2.14%, and $2.9 million, or 1.07%, for the fourth and first quarters of 2009, respectively. Approximately $5.9 million of first quarter 2010 charge-offs reflected additional write-downs on commercial loans considered impaired in prior quarters. As a result, total nonperforming assets were $35.9 million, or 1.79% of total assets, at March 31, 2010, down from $40.7 million, or 2.03%, at December 31, 2009.

"Our focused attention on reducing problem loans is producing positive results,” commented Sloane. “While some workout efforts required additional write-downs in the first quarter 2010, we believe Peoples’ overall asset quality showed signs of continued stabilization in the first quarter.”

The improvement in asset quality during the first quarter of 2010 resulted in Peoples’ allowance for loan losses decreasing $0.7 million to $26.6 million, or 2.53% of total loans, from $27.3 million, or 2.59%, at December 31, 2009. To maintain the adequacy of the allowance for loan losses, Peoples recorded a first quarter 2010 provision for loan losses of $6.5 million versus $6.8 million last quarter and $4.1 million in the first quarter of 2009.

Total retail deposit balances grew $42.8 million, or 13% annualized, during the first quarter of 2010, due mostly to increased interest-bearing balances. Money market balances increased $32.9 million at quarter-end, totaling $296.2 million versus $263.3 million at year-end 2009. Much of this growth was a result of a single commercial customer depositing $20 million into a money market account, of which half was transferred from a matured certificate of deposit (“CDs”) and the other half from another financial institution. The remaining growth was attributable to Peoples maintaining a competitive rate on its money market accounts. Total savings account balances were down $4.1 million since December 31, 2009, as seasonal growth in consumer deposit balances largely offset a $9.6 million decline attributable to Peoples’ planned reduction in public fund deposit balances. Total non-interest-bearing balances increased $3.3 million to $201.3 million at March 31, 2010, compared to year-end 2009. Peoples used the funds generated from retail deposit growth to repay maturing brokered CDs and other wholesale funding. As a result, total borrowed funds decreased $33.1 million, or 10%, during the first quarter of 2010.

Peoples Bancorp Inc. is a diversified financial products and services company with $2.0 billion in assets, 47 locations and 39 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, LLC. 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 2010 results of operations today at 11:00 a.m., Eastern Daylight Savings 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:
Certain statements made in this news release regarding Peoples’ financial condition, results of operations, plans, objectives, future performance and business, 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 1995. These forward-looking statements are identified by the fact they are not historical facts and include words such as “anticipate”, “may”, “feel”, “expect”, “believe”, “plan”, and similar expressions.

These forward-looking statements reflect management’s current expectations based on all information available and its knowledge of Peoples’ business and operations. Additionally, Peoples’ financial condition, results of operations, plans, objectives, future performance and business are subject to risks and uncertain¬ties that may cause actual results to differ materially. These factors include, but are not limited to: (1) continued 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 and weakening in the real estate market, either nationally 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) changes in accounting standards, policies, estimates or procedures may adversely affect Peoples’ reported financial condition or results of operations; (9) adverse changes in the conditions and trends in the financial markets, which may adversely affect the fair value of securities within Peoples’ investment portfolio; (10) a delayed or incomplete resolution of regulatory issues that could arise; (11) Peoples’ ability to receive dividends from its subsidiaries; (12) Peoples’ ability to maintain required capital levels and adequate sources of funding and liquidity; (13) the impact of larger or similar financial institutions encountering problems, which may adversely affect the banking industry and/or Peoples; (14) the impact of reputational risk created by these developments on such matters as business generation and retention, funding and liquidity; (15) 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 (16) 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, 2009.

As required by U.S. GAAP, Peoples is required to evaluate the impact of subsequent events through the filing date of its March 31, 2010 consolidated financial statements on Form 10-Q with the SEC. Accordingly, subsequent events could occur that may cause Peoples to update its critical accounting estimates and to revise its financial information from that which is contained in this release.

Please click here to view the complete earnings release.

END OF RELEASE

PEOPLES BANCORP INC.
DECLARES FIRST QUARTER 2010 DIVIDEND

___________________________________________

March 25, 2010

Contact: Mark Bradley
President and Chief Executive Officer
(740) 373-3155

MARIETTA, Ohio - The Board of Directors of Peoples Bancorp Inc. (NASDAQ: PEBO) today declared a cash dividend of $0.10 per common share payable April 19, 2010, to common shareholders of record on April 5, 2010.

The first quarter dividend represents a payout of approximately $1.1 million based on 10.5 million common shares currently outstanding and an annualized dividend yield of 2.39% based on the closing stock price of Peoples’ common shares of $16.74 on March 24, 2010.

Peoples’ capital continues to be significantly higher than regulatory minimums needed to be considered “well capitalized”. At December 31, 2009, Peoples’ Tier 1 Common, Total Tier 1 and Total Risk-Based Capital ratios were 10.58%, 15.49% and 16.80%, compared to the well capitalized minimum ratios of 4%, 6% and 10%, respectively.

Peoples also announced it intends to release results of operations for the first quarter of 2010 before the market opens on Tuesday, April 20, 2010, and host a facilitated conference call at 11:00 a.m. Eastern Daylight Savings Time on the same date. A simultaneous Webcast of the conference call audio will be available on Peoples’ website, www.peoplesbancorp.com, in the “Investor Relations” section.

END OF RELEASE

PEOPLES BANCORP INC. NOMINATES BOARD
MEMBERS FOR RE-ELECTION

___________________________________________

Annual Meeting of Shareholders to be held April 22, 2010

January 29, 2010

Contact: Mark Bradley
President and Chief Executive Officer
(740) 373-3155

MARIETTA, Ohio – At its regular meeting yesterday, the Board of Directors of Peoples Bancorp Inc. (“Peoples”) (NASDAQ: PEBO) nominated directors Dave M. Archer, David L. Mead, Robert W. Price, Paul T. Theisen and Thomas J. Wolf for re-election by Peoples shareholders at the Annual Meeting. Each nominee stands for re-election as a director of Peoples for a three-year term expiring in 2013.

Peoples Annual Meeting of Shareholders will be held at 10:00 am local time in Marietta, Ohio on April 22, 2010.

In addition, Peoples’ Board of Directors adopted a new schedule for consideration of declaring future dividends, when appropriate, to common shareholders. Peoples plans to declare future dividends, if financial conditions warrant, to common shareholders at Peoples’ board meetings in March, June, September and December of each year. Such dividends would then be paid to shareholders in the following month, respectively.

In years past, Peoples declared dividends to common shareholders in February, May, August and November. The new schedule for declaring future quarterly dividends provides necessary time to assess the current quarter’s results of operations and consider paying dividends that are better aligned with current operating performance and capital needs.

END OF RELEASE

PEOPLES BANCORP INC. NAMES
EXECUTIVE VICE PRESIDENT, RETAIL BANKING

___________________________________________

January 28, 2010

Contact: Mark Bradley
President and Chief Executive Officer
(740) 373-3155

MARIETTA, Ohio – Peoples Bancorp Inc. and its banking subsidiary, Peoples Bank, National Association (“Peoples Bank”) announce the hiring of Richard W. Stafford to the position of Executive Vice President, Retail Banking. Stafford will oversee Peoples Bank’s 47 banking offices, delivery of consumer loan and deposit services in Peoples Bank’s branches, customer call center, and internet banking offerings.

“We welcome Rick to our leadership team,” said Mark F. Bradley, President and Chief Executive Officer of Peoples Bancorp Inc. and Peoples Bank. “His experience, energy and enthusiasm for customer service and delivery of financial services to clients will be assets for our company.”

Stafford most recently served as Senior Vice President of Retail Banking and Chief Operating Officer of a community bank in Michigan, where he was responsible for over 20 banking offices. Stafford has 22 years experience in financial services. He is a graduate of the ABA Graduate School of Banking at Georgetown University and Dale Carnegie Sales-Service program. He also earned his Masters Degree at Walsh College and Bachelor of Business Administration from Adrian (Michigan) College.

"Rick’s approach to banking and serving clients will help us meet growth goals to drive shareholder value,” continued Bradley. “We look forward to Rick’s contributions to the continued integration and growth of our product offerings across banking, insurance and investment services.”

Stafford is also active in various community projects, including the Make-a-Wish Foundation and several chambers of commerce. He will officially join Peoples Bancorp Inc. on February 8, 2010.

Peoples Bancorp Inc. is a diversified financial products and services company with $2.0 billion in assets, 47 locations and 39 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 LLC, which includes the Putnam and Barengo divisions. 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.

END OF RELEASE

PEOPLES BANCORP INC. ANNOUNCES
FOURTH QUARTER AND 2009 RESULTS

___________________________________________

January 26, 2010

Contact: Edward Sloane
Chief Financial Officer and Treasurer
(740) 373-3155

MARIETTA, Ohio - Peoples Bancorp Inc. (“Peoples”) (NASDAQ: PEBO) today announced net income available to common shareholders of $0.7 million for the fourth quarter of 2009, representing diluted earnings per common share of $0.07, compared to a net loss available to common shareholders of $4.6 million and $3.1 million, representing a diluted loss per common share of $0.44 and $0.33, for the third quarter of 2009 and fourth quarter of 2008, respectively. For the 2009 year, net income available to common shareholders totaled $2.3 million, or $0.22 per diluted common share, in 2009 versus $7.5 million, or $0.72, in 2008.

Summary points regarding fourth quarter and 2009 results:

Nonperforming assets declined $3 million, or 6%, to 2.03% of total assets at year-end 2009, from 2.16% at September 30, 2009. Fourth quarter 2009 net charge-offs also were lower than recent quarters, totaling $5.7 million. Allowance for loan losses continued to build during the fourth quarter, increasing $1.1 million and resulting in fourth quarter 2009 provision for loan losses of $6.8 million, or 0.63% of average loans. For 2009, net charge-offs were $21.4 million and allowance for loan losses increased $4.3 million, resulting in provision for loan losses of $25.7 million.
Peoples recognized non-cash pre-tax other-than-temporary impairment charges of $1.8 million ($1.2 million or $0.11 per common share after-tax) in the fourth quarter of 2009 and $7.7 million ($5.0 million or $0.48 per diluted share) for the year 2009. These impairment losses related to Peoples’ investments in collateralized debt obligation securities and individual bank-issued trust preferred securities.
Total Risk-Based Capital ratio was 16.80% at year-end, up from 16.39% at September 30, 2009, and substantially higher than the regulatory minimum amount needed to be considered “well-capitalized”. Tangible common equity increased to 7.22% of tangible assets from 6.21% at December 31, 2008.
Net interest income and margin remained strong throughout 2009, due to proactive balance sheet management that lowered funding costs and mitigated the impact of historically low market rates on asset yields.
Non-interest income was consistent with prior periods, totaling $7.8 million for the fourth quarter of 2009 and $32.1 million for the year, as stronger mortgage banking income and debit card revenue offset lower insurance and bank owned life insurance income.
Non-interest expenses were contained during the fourth quarter of 2009, with a modest linked quarter increase attributed to the third quarter reversal of incentive plan accruals based primarily on full year corporate results of operations, which decreased third quarter salary and employee benefit costs by $451,000, coupled with $119,000 of additional employee medical benefit plan costs in the fourth quarter. In 2009, non-interest expense increases were mostly isolated to $3.1 million additional FDIC insurance expense and higher costs associated with problem loans, such as legal and other professional fees.
Retail deposit balances were up at December 31, 2009, from both the prior quarter-end and year-end, largely a result of higher non-interest-bearing deposits, which grew $11 million, or 23% annualized, in the fourth quarter and $18.0 million, or 10%, for the entire year.
Gross loan balances continued to be impacted by charge-offs and payoffs on commercial real estate loans during the fourth quarter of 2009, as well as existing residential real estate loans being refinanced and sold to the secondary market as customers responded to attractive long-term, fixed rates.

“The year 2009 was a challenging year for our bottom-line earnings as we worked through asset quality issues caused by the economic downturn that started in 2008,” said Mark F. Bradley, President and Chief Executive Officer. “As we continued our focus on reducing problem loans, we found it necessary to build our allowance for loan losses due to recent charge-off levels. We also took steps to preserve capital and maintain adequate liquidity. Key successes in 2009 included effective cost control, stable net interest margin, increased revenue and good core deposit growth.”

Fourth quarter 2009 net interest income was consistent with the prior quarter at $15.4 million, while net interest margin expanded 5 basis points to 3.50%. Interest income was challenged by lower reinvestment rates for investment securities in the fourth quarter, coupled with the full quarter’s impact of third quarter 2009 commercial loan payoffs. However, Peoples repaid approximately $48 million of high-cost wholesale funding in the fourth quarter, using excess cash reserves at the Federal Reserve, which lowered interest expense and overall cost of funds. This action also was a key driver of the improvement in net interest margin during the fourth quarter of 2009. Year-over-year, fourth quarter net interest income was up 5% and net interest margin expanded 6 basis points, as reductions in funding costs outpaced the decline in interest income from loan payoffs and additional nonaccrual loans. For the year 2009, net interest income was $61.8 million, up 6% over the prior year, while net interest margin remained relatively unchanged.

"We achieved our strategic goal of replacing higher-cost wholesale funding with lower-cost core deposits throughout 2009,” said Edward G. Sloane, Chief Financial Officer and Treasurer. “Due to this success, we managed to reduce overall funding costs in 2009, which more than offset the impact of lower asset yields. As we start 2010, we have the balance sheet prepared for the eventual increase in interest rates. Until that occurs, our ability to retain and grow low-cost deposits and lower funding costs further will be key to maintaining net interest income levels given the current pressure on asset yields.”

In the fourth quarter 2009, non-interest income was $7.8 million, matching both the prior quarter and fourth quarter 2008 amounts. Trust and investment income grew during the fourth quarter of 2009 due to higher managed asset values. During 2009, total managed assets grew 11%, largely reflecting the general recovery within the global financial markets. Secondary market loan production remained steady, resulting in higher mortgage banking income. Fourth quarter electronic banking income, primarily debit card revenue, benefited from continued growth in the volume of transactions completed using debit cards. Insurance income declined in the fourth quarter, due mostly to lower property and casualty insurance commissions. In 2009, non-interest income totaled $32.1 million, equaling the prior year.

Non-interest expense totaled $14.6 million for the fourth quarter of 2009, versus $14.1 million for the linked quarter. This increase was due mostly to the third quarter reversal of accruals associated with Peoples’ annual incentive award plan. Peoples also incurred higher employee medical benefit plan costs and external legal and valuation expenses associated with problem loans in the fourth quarter. Year-over-year growth in total non-interest expense for both the fourth quarter and full year 2009 was mostly isolated to additional FDIC insurance expense, higher employee medical benefit costs and workout costs for problem loans.

"During the second half of 2009, we intensified our cost control efforts and we will be working to build on that progress in 2010,” said Sloane. “A key to achieving our 2010 operating goals will be reductions in various operating expenses and improvement in overall operating efficiency. We continue to evaluate opportunities to expand our customer base and grow the company in a disciplined manner considering the value of capital in the current operating environment.”

In the fourth quarter of 2009, Peoples recorded a $1.8 million other-than-temporary impairment loss related to two collateralized debt obligation (“CDO”) investment securities, consisting mostly of bank-issued trust preferred securities. Management concluded these investments were total losses based upon its evaluation of the credit quality of the underlying issuers during the fourth quarter and estimation of cash flows to be received from the securities. After the fourth quarter 2009 impairment charge, the carrying value of Peoples’ remaining investment in CDO securities is $1.0 million.

"The impairment losses recognized in 2009 significantly reduced the level of high risk securities within our investment portfolio,” said Sloane. “At year-end, our analysis indicated that the remaining loss exposure was limited to our $1 million CDO investment, which we consider manageable as we move into 2010.”

Peoples’ loan balances decreased $16.0 million in the fourth quarter of 2009, to $1.05 billion, reflecting lower commercial real estate and consumer loan balances. During the fourth quarter, a single $3.4 million nonaccrual commercial real estate loan was paid off, while an unrelated $5.0 million commercial real estate loan was transferred to other real estate owned. Both of these loans had been identified as impaired and placed on nonaccrual status in 2008. Also during the fourth quarter, several large commercial construction loans, with total outstanding balances of approximately $40 million, were converted to term commercial mortgage loans. Throughout 2009, total loan balances fell $52.0 million, primarily reflecting charge-offs and pay downs of commercial loans, plus lower demand due to the economic downturn. Loan balances also have been impacted by existing residential real estate loans being refinanced and sold to the secondary market due to customer demand for long-term, fixed-rate loans. As a result, Peoples’ serviced loan portfolio has increased 26% since year-end 2008, to $227.8 million at December 31, 2009.

Total nonperforming assets were down $2.7 million to $40.7 million, or 2.03% of total assets, at December 31, 2009, from $43.4 million, or 2.16%, at September 30, 2009. In 2009, total nonperforming assets were reduced by $1.1 million, or 3%.

"We have been diligent in our efforts to identify and resolve nonperforming assets during 2009,” commented Sloane. “The workout process has been slower than we would like in 2009 due to the weakened commercial real estate market and recessionary economy. However, the modest reduction in nonperforming assets at year-end 2009 represents good progress towards our goal of improving overall asset quality.”

Fourth quarter 2009 net loan charge-offs were $5.7 million, or 2.14% of average loans on an annualized basis, compared to $7.1 million, or 2.57%, and $9.7 million, or 3.45%, for the third quarter of 2009 and fourth quarter of 2008, respectively. Approximately $4.3 million of the fourth quarter 2009 charge-offs reflect write-downs associated with the workouts of two existing impaired commercial real estate loans. Peoples’ allowance for loan losses increased $1.1 million in the fourth quarter of 2009, to $27.3 million, or 2.59% of total loans, from $26.2 million, or 2.46%, at September 30, 2009. This increase was primarily attributable to the impact of charge-offs remaining at an elevated level during 2009. To maintain the adequacy of the allowance for loan losses, Peoples recorded a fourth quarter 2009 provision for loan losses of $6.8 million versus $10.2 million last quarter and $13.4 million in the fourth quarter of 2008.

In 2009, net loan charge-offs were $21.4 million, or 1.96% of average loans, versus $20.4 million, or 1.83%, in 2008. The combination of elevated charge-off levels and increases in specific reserves for impaired loans during 2009 necessitated building the allowance for loan losses by $4.3 million in 2009. Provision for loan losses totaled $25.7 million for 2009 compared to $27.6 million for 2008.

Retail deposit balances grew $18.3 million during the fourth quarter of 2009, with an $11.0 million, or 23% annualized, increase in non-interest-bearing balances comprising the majority of the growth. Interest-bearing retail deposits increased during the fourth quarter, reflecting higher money market balances due to Peoples offering a highly competitive rate. At December 31, 2009, total retail deposits were up $28.3 million since year-end 2008. Non-interest-bearing deposits increased $18.0 million, or 10%, in 2009, while interest-bearing retail deposits grew $10.3 million. The growth in lower-cost and non-interest-bearing deposits during 2009 was a major contributor to the 20% reduction in borrowed funds, which totaled $345.6 million at year-end 2009.

At December 31, 2009, Peoples’ Tier 1 Common, Total Tier 1 and Total Risk-Based Capital ratios were 10.58%, 15.49% and 16.80%, compared to the well capitalized minimum ratios of 4%, 6% and 10%, respectively. Since year-end 2008, tangible common equity has increased due mostly to improvement in fair value of Peoples’ available-for-sale investment portfolio. As a result, the ratio of tangible common equity to tangible assets was 7.22% at both December 31, 2009 and September 30, 2009, versus 6.21% at year-end 2008.

"Overall, we are encouraged by 2009 fourth quarter results and a decrease in nonperforming assets, although the continuation of tough economic conditions resulted in additional losses on loans and investments,” summarized Bradley. "Our main priorities for 2010 will include protecting our already strong capital position, maintaining a diverse revenue stream and improving operating efficiency.”

Peoples Bancorp Inc. is a diversified financial products and services company with $2.0 billion in assets, 47 locations and 39 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, LLC. 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 fourth quarter and 2009 results of operations today at 11:00 a.m., Eastern Standard 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:
Certain statements made in this news release regarding Peoples’ financial condition, results of operations, plans, objectives, future performance and business, 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 1995. These forward-looking statements are identified by the fact they are not historical facts and include words such as “anticipate”, “may”, “feel”, “expect”, “believe”, “plan”, and similar expressions.

These forward-looking statements reflect management’s current expectations based on all information available and its knowledge of Peoples’ business and operations. Additionally, Peoples’ financial condition, results of operations, plans, objectives, future performance and business are subject to risks and uncertainties that may cause actual results to differ materially. These factors include, but are not limited to: (1) continued 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 less favorable 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, and charge-offs, which may be less favorable than expected and adversely impact the amount of interest income generated; (5) general economic conditions and weakening in the economy, specifically the real estate market, either nationally or in the states in which Peoples does 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) Peoples’ ability to receive dividends from its subsidiaries; (10) the impact of larger or similar financial institutions encountering problems, which may adversely affect the banking industry and/or Peoples; (11) changes in accounting standards, policies, estimates or procedures, which may impact Peoples’ reported financial condition or results of operations; (12) Peoples’ ability to maintain required capital levels and adequate sources of funding and liquidity; (13) the impact of reputational risk created by these developments on such matters as business generation and retention, funding and liquidity; (14) 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 (15) 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, 2008, as updated by the disclosure under the heading “ITEM 1A. RISK FACTORS” of Peoples’ Quarterly Report on Form 10-Q for the quarter ended September 30, 2009.

As required by U.S. GAAP, Peoples is required to evaluate the impact of subsequent events through the filing date of its December 31, 2009 consolidated financial statements on Form 10-K with the SEC. Accordingly, subsequent events could occur that may cause Peoples to update its critical accounting estimates and to revise its financial information from which is contained in release.

Please click here to view the complete earnings release.