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Investor Relations

2005 Press Releases

 

PEOPLES BANCORP INC.

DECLARES FOURTH QUARTER DIVIDEND

_____________________________________________________

November 10, 2005
Contact: Mark F 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 $0.20 per share, representing an 11.1% increase over the $0.18 per share dividend paid in the fourth quarter of 2004.

"We are pleased to announce our 40th consecutive year of dividend growth," said Mark F. Bradley, President and Chief Executive Officer. "We believe dividend increases are an effective method of enhancing shareholder return." With the fourth quarter dividend, Peoples Bancorp has increased its dividend 8.3% in 2005, compared to the $0.72 per share paid in 2004.

The fourth quarter dividend payout of approximately $2.1 million, based on 10.5 million shares outstanding at November 10, 2005, is payable on January 3, 2006, to shareholders of record at December 15, 2005.

Peoples Bancorp Inc., a diversified financial products and services company with $1.9 billion in assets, makes available a complete line of banking, investment, insurance, and trust solutions through 49 locations and 34 ATMs in Ohio, West Virginia and Kentucky. Peoples' financial service units include Peoples Bank, Peoples Financial Advisors (a division of Peoples Bank) and Peoples Insurance Agency, Inc. Peoples' common shares are traded on the NASDAQ national 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 INCREASED
THIRD QUARTER EARNINGS
_____________________________________________________

October 27, 2005
Contact: John W Conlon, Chief Financial Officer
(740) 373-3155

MARIETTA, Ohio - Peoples Bancorp Inc. (“Peoples”) (NASDAQ: PEBO) announced today net income of $5,268,000 for the quarter ended September 30, 2005, up 3% from $5,138,000 reported in the third quarter of 2004.  Diluted earnings per share were $0.50 for the third quarter of 2005 compared to $0.48 for the third quarter of 2004, a 4% increase.  Peoples’ increased earnings were attributable to improved net interest income from a higher level of earning assets and stable levels of non-interest expense.  For the first nine months of 2005, net income totaled $15,259,000, or $1.44 per diluted share, versus $15,557,000, or $1.45 per diluted share, earned in the corresponding prior-year period. 

“Our performance in the third quarter reflects continued growth, characterized by strong loan production while maintaining asset quality,” commented Mark F. Bradley, President and CEO.  “We are pleased to see positive trends in key areas, including a modest improvement in net interest income and reduction in operating expenses.  Our diverse revenue streams continue to serve as a source of strength as we work through the interest rate challenges associated with a flattening yield curve.”

Net interest income grew 2% to $13,150,000 in the third quarter of 2005, from $12,891,000 a year ago, as average earning assets increased more than average interest-bearing liabilities.  Compared to 2004’s third quarter, average earning assets were up $48 million to $1.64 billion in the third quarter of 2005, as a result of the $100 million increase in average loan balances, while average interest-bearing liabilities grew $33 million during the same period.  Third quarter 2005 net interest margin was 3.32%, down slightly from 3.34% for the third quarter a year ago, due to competition for loans and deposits combined with the flattening interest rate yield curve.  Compared to the second quarter of 2005, net interest income was up 2% while net interest margin was unchanged.  Through nine months in 2005, net interest income was $38,778,000 and net interest margin was 3.30%, compared to $39,136,000 and 3.44%, respectively, for the first nine months of 2004.

“Increased levels of earning assets from loan growth continue to bolster net interest income,” said Jack Conlon, Chief Financial Officer.  “However, various factors, including competition for both loans and deposits and the continued flat yield curve, have retarded improvement in net interest margin.  We continue to execute strategies designed to provide some near-term benefits, while maintaining our long-term approach to managing Peoples’ balance sheet.”

Non-interest income totaled $7,127,000 for third quarter of 2005, compared to $7,248,000 for 2004’s third quarter.  This decline is largely attributable to one-time fiduciary fees earned in last year’s third quarter and lower business-owned life insurance revenues, which were partially offset by higher electronic and mortgage banking revenues.  On a year-to-date basis, non-interest income was up 17% through September 30, 2005, totaling $21,456,000 versus $18,318,000 through nine months of 2004.  Enhanced insurance commissions, from the two insurance agency acquisitions completed in mid-2004, accounted for nearly all of this increase.  

Deposit account service charges was the largest source of Peoples’ non-interest revenue, totaling $2,533,000 and $7,279,000 for the three and nine months ended September 30, 2005, respectively, compared to $2,510,000 and $7,222,000 for the same periods in 2004.  Third quarter 2005 insurance and investment commissions were $2,266,000 versus $2,272,000 a year ago.  On a year-to-date basis, insurance and investment commissions were up 80% to $7,186,000 through September 30, 2005, from $3,999,000 a year ago, with a full year of revenues from the agency acquisitions completed in mid-2004 accounting for this improvement.  In the third quarter of 2005, Peoples continued to experience strong e-banking revenues driven by ATM and debit card fees.  The resulting increase in revenue of 16% from last year’s third quarter and 19% on a year-to-date basis through September 30 was due to higher debit card activity and additional cards issued.  Fiduciary revenues totaled $794,000 in the third quarter of 2005, versus $988,000 in the third quarter of 2004, with the decline due to special one-time fees, totaling $210,000, earned a year ago.

In the third quarter of 2005, non-interest expense was flat compared to 2004’s third quarter, totaling $12.5 million, and down 3% from $12.9 million for the second quarter of 2005.  Salaries and benefits remain Peoples’ largest operating expense, totaling $6.6 million and $6.7 million for the third quarters of 2005 and 2004, respectively.  Compared to the second quarter of 2005, total salaries and benefits were essentially unchanged.  Occupancy and equipment costs were down 10% in the third quarter of 2005 from the prior-year quarter, largely attributable to lower depreciation expense and flood-related costs of $100,000 incurred in 2004’s third quarter.  Lower depreciation expense was also a key factor in the 9% reduction in occupancy and equipment costs from the second quarter of 2005.  Peoples’ bankcard costs have benefited from a new processing contract for its ATM and debit card operations, which was the main factor for the 30% decline in third quarter bankcard costs and 21% decrease through nine months.  Other non-interest expense in the third quarter of 2005 includes a $250,000 loss on a hedging instrument that management determined should be reclassified from accumulated comprehensive income, a component of Peoples’ equity, to earnings.

“We are pleased with the modest decline in operating expense,” stated Bradley.  “In recent periods, we have taken steps to streamline operations in various areas, which are starting to have a positive impact on expenses, as reflected in our improved third quarter efficiency ratio.  We continue to evaluate ways to improve our operating efficiency.”

During the third quarter, portfolio loans increased $26.5 million, or 10% on an annualized basis, to $1.06 billion at September 30, 2005, due primarily to the $21.6 million growth in commercial and commercial real estate loans.  Consumer loan balances, excluding overdrafts, increased $2.5 million since June 30, 2005, due mostly to activity in Peoples’ indirect lending business, leading to two consecutive quarters of consumer loan growth.  As part of Peoples’ mortgage banking activities, $140.6 million of fixed-rate real estate loans previously sold into the secondary market were being serviced at September 30, 2005, compared to $106.4 million at December 31, 2004.  Peoples also had $492,000 of fixed-rate mortgage loans held for sale at September 30, 2005, compared to $612,000 at year-end 2004.

Nonperforming loans were $5.9 million, or 0.56% of loans, at September 30, 2005, down from $7.6 million, or 0.74%, at June 30, 2005.  This decrease during the quarter was due largely to the net impact of Peoples reclassifying $2 million of nonaccrual commercial loans to other real estate owned.  As a result, nonperforming assets were unchanged from June 30, 2005, comprising 0.44% of total assets.  Net charge-offs were $505,000 in the third quarter of 2005 compared to $492,000 a year ago and $514,000 in the second quarter of 2005.  Commercial loans comprised the largest portion of third quarter 2005 net charge-offs, while net charge-offs relating to the Overdraft Privilege program comprised nearly half of third quarter 2004 net charge-offs.  On a year-to-date basis, net charge-offs were down 15% through September 30, 2005, compared to the same period in 2004, due to higher recoveries. 

The allowance for loan losses was $14.7 million, or 1.39% of loans, at September 30, 2005, compared to $14.8 million, or 1.44% of loans, at year-end 2004.  The provision for loan losses was $485,000 in the third quarter of 2005, compared to $605,000 a year ago, and $40,000 in the second quarter of 2005.  The lower provision from the year ago quarter was based on management’s quarterly evaluation of loss factors and is reflective of Peoples’ recent loss experience and recoveries of previously charged-off loans during the third quarter.   

 “As expected, our provision for loan losses returned to more historic levels in the third quarter,” commented Bradley.  “Our evaluation of credit quality and risk, coupled with continued lower levels of net charge-offs, continues to reflect favorable loss trends, which should result in a similar provision in the fourth quarter.”

At September 30, 2005, total deposits were $1.10 billion, up $27.5 million from $1.07 billion at year-end 2004.  Interest-bearing deposits grew $21.6 million to $938.0 million, with $14.9 million attributable to additional brokered deposits.  Non-interest-bearing deposits grew $5.9 million since December 31, 2004, totaling $158.9 million at September 30, 2005.

“Overall, we are pleased with the third quarter results, which reflect our disciplined approach to managing the current interest rate environment,” summarized Bradley.  “We believe our efforts will allow us to build long-term shareholder value through our diversified revenue base.”  

Peoples Bancorp Inc., a diversified financial products and services company with $1.9 billion in assets, makes available a complete line of banking, investment, insurance, and trust solutions through 49 locations and 34 ATMs in Ohio, West Virginia and Kentucky.  Peoples’ financial service units include Peoples Bank, Peoples Financial Advisors (a division of Peoples Bank) and Peoples Insurance Agency, Inc.  Peoples’ common shares are traded on the NASDAQ National 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 third quarter results of operations today at 11:00 a.m. eastern time, with members of Peoples’ executive management participating.  Analysts, media and individual investors are invited to participate in the conference call by calling (877) 407-8033.  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 or 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 press 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 press release, the matters discussed in this press release, and other statements identified by words such as “feel,” “expect,” “believe,” “plan,” “will,” “would,” “should,” “could” and similar expressions are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Rule 175 promulgated thereunder, and Section 21E of the Securities Exchange Act of 1934, as amended, and Rule 3b-6 promulgated thereunder.  These forward-looking statements are subject to risks and uncertain­ties that may cause actual results to differ materially.  Factors that might cause such a difference include, but are not limited to: (1) competitive pressures among depository institutions which may increase significantly; (2) changes in the interest rate environment which may adversely impact interest margins; (3) prepayment speeds, loan originations and sale volumes, charge-offs and loan loss provisions may be less favorable than expected; (4) general economic conditions may be less favorable than expected; (5) political developments, wars or other hostilities may disrupt or increase volatility in securities markets or other economic conditions; (6) legislative or regulatory changes or actions may adversely affect Peoples’ business; (7) changes and trends in the securities markets; (8) a delayed or incomplete resolution of regulatory issues that could arise; (9) the impact of reputational risk created by these developments on such matters as business generation and retention, funding and liquidity; (10) 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; (11) the integration of acquired businesses, including the insurance agencies acquired in mid-2004, may not be successful or the integration may take longer to accomplish than expected; (12) the expected synergies from acquisitions may make it difficult to maintain relationships with clients, associates and suppliers; 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”).  Peoples does not commit to any obligation to release revisions to these forward-looking statements or reflect events or circumstances after the date of this release, except as required by applicable law.  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.

Please click here to view the complete earnings release.

 

 

PEOPLES BANCORP INC. ANNOUNCES UPCOMING
EXECUTIVE MANAGEMENT CHANGES __________________________________________________

September 14, 2005
Contact: Mark F Bradley, President and CEO
(740) 373-3155

MARIETTA, Ohio - Peoples Bancorp Inc. (NASDAQ: PEBO) today announced that effective January 1, 2006, David B. Baker, President of Peoples Financial Advisors and Peoples Insurance Agency, Inc., will assume a non-executive role as Senior Financial Advisor of Peoples Financial Advisors, a division of Peoples Bancorp’s subsidiary Peoples Bank, National Association (“Peoples Bank”) dedicated to serving clients’ investment, trust, and retirement planning needs.

“Dave Baker has been a strong contributor to the success and growth of our company,” said Mark F. Bradley, President and CEO of Peoples Bancorp. “In the last 5 years, Peoples Bancorp’s revenues from investment and insurance operations have tripled to over $12 million on an annualized basis.”

In his new role, Baker, 59, will be responsible for directly serving clients’ financial planning needs and other special projects. Effective January 1, 2006, Baker will no longer serve as an Executive Vice President of Peoples Bancorp or Peoples Bank.

Baker began his career in 1974 in Peoples Bank’s Investment and Trust Division (now Peoples Financial Advisors). Since 2000, Baker has also served as President of Peoples Insurance Agency, Inc., a full service insurance agency offering health, life, and property and casualty insurance to clients. Effective January 1, 2006, Mark Bradley will assume the role of President of Peoples Insurance Agency, Inc.

“Dave recently expressed an interest in lesser executive management responsibilities, and his new duties in Peoples Financial Advisors will allow him to do what he does best: serve the financial planning needs of many of our clients,” said Bradley.

Peoples Bancorp has appointed David T. Wesel, Vice President, to the position of President of Peoples Financial Advisors effective January 1, 2006. Wesel, 44, has served as Sales Manager of Peoples Financial Advisors since 2004 and has previous experience at a regional brokerage firm. Effective January 1, 2006, Wesel will become an Executive Vice President of Peoples Bancorp and Peoples Bank.

Wesel has 20 years experience in executive management and sales administration. He is a graduate of The Ohio State University and earned an MBA from Ohio University in 1997. More recently, Wesel successfully completed all of the requirements to be a Certified Trust Financial Advisor through the Institute of Certified Bankers. Wesel is also the son of Joseph H. Wesel, Chairman of the Board of Peoples Bancorp.

“I am confident David Wesel will be prepared to take on the next level of leadership in our company,” summarized Bradley. “I look forward to seeing more positive changes as we execute on our strategies to deliver quality financial products and services to our clients.”

Peoples Bancorp Inc., a diversified financial products and services company with $1.8 billion in assets, makes available a complete line of banking, investment, insurance, and trust solutions through 50 locations and 34 ATMs in Ohio, West Virginia and Kentucky. Peoples Bancorp’s financial service units include Peoples Bank, Peoples Financial Advisors (a division of Peoples Bank) and Peoples Insurance Agency, Inc. Peoples Bancorp’s common shares are traded on the NASDAQ national market under the symbol “PEBO”, and Peoples Bancorp is a member of the Russell 3000 index of US publicly traded companies. Learn more about Peoples Bancorp at www.peoplesbancorp.com.

END OF RELEASE

 

PEOPLES BANCORP INC.
 INCREASES THIRD QUARTER DIVIDEND _____________________________________________________

August 11, 2005
Contact: Mark F 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 $0.20 per share payable on October 1, 2005, to shareholders of record at September 15, 2005.

The third quarter dividend reflects a payout of approximately $2.1 million based on 10.5 million shares outstanding at August 10, and reflects a 11.1% increase over the $0.18 per share dividend paid in the third quarter of 2004 and a 5.3% increase over the $0.19 per share paid in the second quarter of 2005.

Peoples Bancorp Inc., a diversified financial products and services company with $1.8 billion in assets, makes available a complete line of banking, investment, insurance, and trust solutions through 50 locations and 34 ATMs in Ohio, West Virginia and Kentucky. Peoples’ financial service units include Peoples Bank, Peoples Financial Advisors (a division of Peoples Bank) and Peoples Insurance Agency, Inc. Peoples’ common shares are traded on the NASDAQ national 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. REPORTS INCREASED
SECOND QUARTER EARNINGS
______________________________________________

July 26, 2005
Contact: John W Conlon, Chief Financial Officer
(740) 373-3155

MARIETTA, Ohio - Peoples Bancorp Inc. (“Peoples”)(NASDAQ: PEBO) announced today second quarter 2005 net income of $5,299,000, up 5% compared to $5,053,000 earned in the second quarter a year ago.  Diluted earnings per share were $0.50, up 6% from $0.47 in 2004’s second quarter.  Higher net interest income and non-interest income and lower provision for loan losses were the primary reasons for Peoples’ improved second quarter earnings.  

For the six months ended June 30, 2005, net income totaled $9,991,000, or $0.95 per diluted share, versus $10,419,000, or $0.97 per diluted share, for the same period in 2004.  Peoples’ lower earnings for the first six months resulted from reduced levels of net interest income and higher non-interest expense, which offset increases in net revenues generated by acquisitions completed during 2004.

“We are pleased to report improved second quarter earnings performance,” commented Mark F. Bradley, President and CEO.  “Net interest income and margin are showing slow signs of improvement, although we are still challenged by the flattening yield curve.  Our new loan production was strong, more than offsetting loan payoffs, and credit quality trends remain favorable at this time.”

For the quarter ended June 30, 2005, net interest income totaled $12,916,000, up 2% from $12,697,000 a year ago.  This improvement was largely attributable to an increase in the volume of earning assets which exceeded the volume increase in interest-bearing liabilities.  The increase in earning assets was driven by a $104 million increase in average loans over the same period last year.  However, increases in short-term interest rates without comparable increases in long-term rates contributed to the compression of net interest margin to 3.32% in the second quarter of 2005 from 3.39% a year ago.  Compared to the first quarter of 2005, both net interest income and margin improved in the second quarter, primarily the result of improved asset yields and changes in the mix of funding sources due to an increase in both lower-cost and non-interest-bearing deposits.  Through six months in 2005, net interest income was $25,628,000 and net interest margin was 3.29%, compared to $26,245,000 and 3.48%, respectively, for the first six months of 2004.

“The flattening yield curve continues to challenge net interest income and margin, especially since our funding sources have a different sensitivity to the short end of the interest rate curve than our earning assets,” said Jack Conlon, Chief Financial Officer.  “Traditionally, deposit rates tend to lag increases in short-term rates resulting in some improvement in net interest margin.  Additionally, intense competition for loans and deposits in many of our markets puts significant pressure on both sides of the balance sheet and has tempered margin improvement.  However, we are pleased with the 5 basis point increase in the second quarter compared to the linked quarter.  With the possibility of additional rate increases in 2005, we are working to maintain a slightly asset sensitive risk position, which should benefit future earnings in an upward interest rate environment.”

The provision for loan losses was $40,000 in the second quarter of 2005, compared to $616,000 a year ago, and $941,000 in the first quarter of 2005.  The lower provision was based on management’s quarterly evaluation of loss factors and is reflective of Peoples’ recent loss experience and recoveries of previously charged-off loans during the second quarter.  As previously reported, the first quarter 2005 provision included $500,000 for a group of loans comprising a $2.7 million commercial relationship that management determined was impaired.  This level of provision was based on management’s initial evaluation of the financial condition of the borrowers and value of the collateral when the impairment was discovered in late April 2005.  As part of management’s ongoing loan review process, the loans in this relationship were charged-down $518,000 in the second quarter. 

Net chargeoffs were down 26% in the second quarter of 2005 compared to a year ago, due to increased recoveries of previously charged-off loans.  Commercial loans comprised the largest portion of net charge-offs in both periods, totaling $201,000 and $475,000 in the second quarters of 2005 and 2004, respectively.  At June 30, 2005, the allowance for loan losses was $14.7 million, or 1.42% of loans, compared to $14.8 million, or 1.44% of loans, at year-end 2004.

“We continue to experience higher recoveries of previously charged-off loans during the second quarter as compared to average recovery levels in 2004, resulting in a significantly lower provision,” commented Bradley.  “Excluding net charge-offs relating to the Overdraft Privilege program and the impaired commercial loan relationship that was provided for in the first quarter, second quarter recoveries exceeded charge-offs by $159,000.  Loan delinquencies are lower and we continue our collection efforts to minimize losses, although we could experience a slightly higher loan loss provision in the third quarter compared to the second quarter if net charge-offs return to more historic levels.”

Non-interest income, excluding net gains on securities and other assets, grew 15% to $7,202,000 for the quarter ended June 30, 2005, and 29% to $14,329,000 for the first six months of 2005 compared to the same periods year ago.  Enhanced insurance commissions from last year’s two insurance agency acquisitions accounted for nearly all of these increases.  Non-interest income was up slightly compared to the first quarter of 2005, as increases from several of Peoples’ major revenue sources were offset by lower insurance commissions attributable to contingency income from insurance operations of $481,000 recognized in the first quarter.

Deposit account service charges were the largest source of Peoples’ non-interest revenue, totaling $2,472,000 and $2,459,000 for the three months ended June 30, 2005 and 2004, respectively.  Insurance and investment commissions were $2,266,000 in the second quarter of 2005 versus $1,428,000 a year ago.  On a year-to-date basis, insurance and investment commissions totaled $4,920,000 through June 30, 2005, compared to $1,727,000 for the same period in 2004.  Acquisitions were key drivers of these improvements in insurance and investment commissions.  In the second quarter of 2005, Peoples continued to experience strong e-banking revenues, primarily ATM and debit card fees, resulting from higher debit card activity and additional cards issued, with revenues increasing 18% from last year’s second quarter and 21% on a year-to-date basis through June 30. 

In the second quarter of 2005, non-interest expense was $12.9 million versus $11.5 million in 2004’s second quarter.  Operating costs attributable to the insurance agencies acquired in 2004 comprised 73% of this increase.  Higher salaries and benefits and professional fees also contributed to the increase.  Second quarter 2005 non-interest expense was up only 1% compared to the first quarter of 2005. Salaries and benefits remain Peoples’ largest operating expense, totaling $6.7 million and $5.8 million for the second quarters of 2005 and 2004, respectively.  The timing of the insurance agency acquisitions during the second quarter of 2004 accounted for 58% of the $839,000 increase in salaries and benefits, while higher performance based incentive compensation costs were also a substantial factor.  Compared to the first quarter of 2005, total salaries and benefits were essentially unchanged.  Professional fees were up 34% in the second quarter of 2005 compared to a year ago, but down 17% from the prior quarter.  The increase in professional fees from a year ago reflects higher exam and audit fees associated with the new regulatory reporting environment under Sarbanes-Oxley.  Other non-interest expenses in the second quarter of 2005 included $176,000 for the Director Retirement Plan for the benefit of former Chairman Robert E. Evans’ spouse as beneficiary (included in salaries and benefits) and a $100,000 donation to establish the Robert E. Evans Education Fund (included in marketing expense).

During the second quarter, portfolio loans increased $21.1 million to $1.03 billion at June 30, 2005, due primarily to a $16.7 million growth in commercial real estate loans.  Peoples’ consumer lending efforts in the second quarter resulted in a $1.9 million increase in consumer loan balances, excluding overdrafts, compared to March 31, 2005, due mostly to increased activity in Peoples’ indirect lending business.  As part of Peoples’ mortgage banking activities, $132.0 million of fixed-rate real estate loans previously sold into the secondary market were being serviced at June 30, 2005 compared to $106.4 million at December 31, 2004.  Peoples also had $1.6 million of fixed-rate mortgage loans held for sale at June 30, 2005, compared to $0.6 million at year-end 2004.

Nonperforming loans were $7.6 million, or 0.74% of loans, at June 30, 2005, up from $7.3 million, or 0.72%, at March 31, 2005.  This increase was due largely to the net impact of Peoples placing the remaining $2 million of commercial loans in the previously mentioned impaired loan relationship on nonaccrual status, as expected, and the commercial loan comprising the entire $1.1 million of renegotiated loans at March 31, 2005, moving to performing status.  Despite the higher level of nonperforming loans, nonperforming assets decreased to 0.44% of assets at the end of the second quarter, from 0.46% at March 31, 2005, due to a reduction in other real estate owned from the sale of two former banking office properties during the second quarter at a combined gain of $167,000.  Management expects the $2 million of nonaccrual commercial loans in the previously mentioned impaired loan relationship to be classified as other real estate owned in the third quarter of 2005.

“Our asset quality remains comparable to most peers, which reflects our focus on loan underwriting quality as we grow loans,” added Bradley.  “Although the amount of nonperforming loans increased in the second quarter, the increase represented loans previously identified by our loan review process that had already been included in our analysis of the allowance for loan losses and are not expected to result in any unanticipated losses.”

At June 30, 2005, total deposits were $1.10 billion, up $26.0 million from $1.07 billion at year-end 2004.  Interest-bearing deposits grew $25.7 million to $942.2 million, with $19.5 million attributable to increased public funds and $14.9 million due to additional brokered deposits.  These increases offset declines in other interest-bearing deposit categories.  Non-interest-bearing deposits were virtually unchanged compared to December 31, 2004.

“Overall, we are very satisfied with our second quarter results in light of ongoing interest rate challenges,” summarized Bradley.  “In the second half of 2005, we will focus our efforts on continuing to generate quality loans, maintaining diversified sources of revenue and controlling expenses.”  

Peoples Bancorp Inc., a diversified financial products and services company with $1.8 billion in assets, makes available a complete line of banking, investment, insurance, and trust solutions through 50 locations and 34 ATMs in Ohio, West Virginia and Kentucky.  Peoples’ financial service units include Peoples Bank, Peoples Financial Advisors (a division of Peoples Bank) and Peoples Insurance Agency, Inc.  Peoples’ common shares are traded on the NASDAQ national 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 results of operations today at 11:00 a.m. eastern time, with members of Peoples’ executive management participating.  Analysts, media and individual investors are invited to participate in the conference call by calling (888) 424-5801.  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 or download and install the necessary software.  A replay of the call will be available on Peoples’ website in the “Investor Relations” section for 1 year.

Safe Harbor Statement:
This press 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 press release, the matters discussed in this press release, and other statements identified by words such as “feel,” “expect,” “believe,” “plan,” “will,” “would,” “should,” “could” and similar expressions are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Rule 175 promulgated thereunder, and Section 21E of the Securities Exchange Act of 1934, as amended, and Rule 3b-6 promulgated thereunder.  These forward-looking statements are subject to risks and uncertain­ties that may cause actual results to differ materially.  Factors that might cause such a difference include, but are not limited to: (1) competitive pressures among depository institutions which may increase significantly; (2) changes in the interest rate environment which may adversely impact interest margins; (3) prepayment speeds, loan originations and sale volumes, charge-offs and loan loss provisions may be less favorable than expected; (4) general economic conditions are less favorable than expected; (5) political developments, wars or other hostilities may disrupt or increase volatility in securities markets or other economic conditions; (6) legislative or regulatory changes or actions may adversely affect Peoples’ business; (7) changes and trends in the securities markets; (8) a delayed or incomplete resolution of regulatory issues that could arise; (9) the impact of reputational risk created by these developments on such matters as business generation and retention, funding and liquidity; (10) 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; (11) the integration of acquired businesses, including the insurance agencies acquired in mid-2004, may not be successful or the integration may take longer to accomplish than expected; (12) the expected synergies from acquisitions may make it difficult to maintain relationships with clients, associates and suppliers; 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”).  Peoples does not commit to any obligation to release revisions to these forward-looking statements or reflect events or circumstances after the date of this release, except as required by applicable law.  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.

Please click here to view the complete earnings release.

 

 

PEOPLES BANCORP INC. CHIEF FINANCIAL OFFICER

TO RETIRE IN 2006
________________________________________________________

Senior Vice President, Controller and Chief Accounting Officer

Appointed as Successor

July 14, 2005
Contact: Mark F Bradley, President and CEO
(740) 373-3155

MARIETTA, Ohio - Peoples Bancorp Inc. (NASDAQ: PEBO) today announced the plan of John W. “Jack” Conlon, Chief Financial Officer and Treasurer of Peoples Bancorp Inc. (“Peoples Bancorp”) and its banking subsidiary Peoples Bank, National Association (“Peoples Bank”), to retire from both companies on July 31, 2006.

“Jack has made a tremendous contribution to the success and growth of our company,” said Mark F. Bradley, President and CEO of Peoples Bancorp. “In his 23 years at Peoples Bancorp, he has served with passion and an unbending commitment to enhancing shareholder value. We certainly wish Jack an enjoyable and healthy retirement. He has earned it.”

Conlon, 60, joined Peoples Bank as an officer in 1982 and has served in various finance capacities during his career. In 1991, he was named Chief Financial Officer and became Treasurer in 1999. Mr. Conlon has primary responsibility for merger and acquisition activities in addition to his other finance, treasury, and asset/liability management responsibilities. Mr. Conlon, an executive officer, is a member of Peoples Bancorp’s executive management team, which helps set policy and direction for the company.

“I have enjoyed my time with Peoples and I am proud of what we have accomplished,” said Conlon. “The time is right to announce my retirement plans and focus on the continued development of my successor.”

Peoples Bancorp has appointed Donald J. Landers, Senior Vice President, Controller and Chief Accounting Officer, to the position of Chief Financial Officer and Treasurer effective with the retirement of Mr. Conlon. Mr. Landers, 46, has served as Controller and Chief Accounting Officer for Peoples Bancorp since 2003 and has 15 years experience in the financial services industry. Mr. Landers is a graduate of Marietta College with a degree in accounting and is a Certified Public Accountant.

“We will miss Jack’s financial leadership and contribution to our executive team,” continued Bradley. “With Jack’s involvement, we expect to spend the next several months preparing Don for the Chief Financial Officer and Treasurer positions. I am confident Don will be successful in his new role.”

Peoples Bancorp Inc., a diversified financial products and services company with $1.8 billion in assets, makes available a complete line of banking, investment, insurance, and trust solutions through 50 locations and 33 ATMs in Ohio, West Virginia and Kentucky. Peoples Bancorp’s financial service units include Peoples Bank, Peoples Financial Advisors (a division of Peoples Bank) and Peoples Insurance Agency, Inc. Peoples Bancorp’s common shares are traded on the NASDAQ national market under the symbol “PEBO”, and Peoples Bancorp is a member of the Russell 3000 index of US publicly traded companies. Learn more about Peoples Bancorp at www.peoplesbancorp.com.

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PEOPLES BANK APPOINTS TWO DIRECTORS ____________________________________________________

July 8, 2005
Contact: Mark F Bradley, President and CEO
(740) 373-3155

MARIETTA, Ohio – Peoples Bank, National Association (“Peoples Bank”), a subsidiary of Peoples Bancorp Inc. (Nasdaq: PEBO), announced the recent elections of Jeffrey W. Franz and David L. Mead as directors of Peoples Bank. The Peoples Bank Board of Directors unanimously approved the appointments of Mr. Franz and Mr. Mead at the company’s board meeting on June 23, 2005.

“Jeff and David are welcome additions to the Peoples Bank board of directors,” said Mark F. Bradley, President and Chief Executive Officer. “Both individuals have strong experience in the financial services industry, and we are fortunate to add representation of their caliber to our directorship.”

Mr. Franz, a life-long resident of Ashland, Kentucky, joins Peoples Bank’s board with more than 20 years of experience in banking and financial services. Mr. Franz began his career with the Bank of Ashland in the mid-1980s. Following the acquisition of the Bank of Ashland by Fifth Third Bank, Mr. Franz served in a leadership role until his retirement in 2004. He is an owner of the Franz Group, LLC, a holding company for several real estate, development and investment companies. Mr. Franz’s extensive civic involvement includes membership and past directorship of the Ashland Alliance (chamber of commerce for Boyd and Greenup Counties in eastern Kentucky); membership and active involvement with several committees of the Paramount Arts Center; and former Treasurer of the King’s Daughters Health Foundation.

Mr. Mead, a resident of Marietta, Ohio, is an Associate Professor of Management and Finance in the Department of Economics, Management and Accounting at Marietta College. Mr. Mead has 29 years of experience in accounting and finance and has most recently served as Chief Financial Officer of First Place Financial Corp. in Warren, Ohio, and Capital Holdings, Inc. in Toledo, Ohio. Mr. Mead is a graduate of Otterbein College with a degree in Business Administration. He received an MBA from Xavier University and is also a Certified Public Accountant. Mr. Mead is a member of the American Institute of Certified Public Accountants and the Ohio Society of Certified Public Accountants. He is also a past chapter President and past director of the National Leadership Board of Financial Executives International.

The appointments fill the vacancy created by the recent death of Robert E. Evans, former Chairman and Chief Executive Officer of Peoples Bank, and increase the number of directors by one. With Mr. Franz and Mr. Mead’s appointments, the number of directors was increased to 11. In other action at the June 23 Peoples Bank Board meeting, Paul T. Theisen was appointed Chairman of the Board and Wilford D. Dimit was appointed Vice Chairman of the Board of Directors.

Peoples Bank is a subsidiary of Peoples Bancorp Inc., a diversified financial products and services company with $1.8 billion in assets. Peoples Bank makes available a complete line of banking, investment, insurance, and trust solutions through 50 locations and 33 ATMs in Ohio, West Virginia and Kentucky. Peoples Bank’s financial service units include Peoples Financial Advisors and Peoples Insurance Agency, Inc. Peoples Bancorp’s common shares are traded on the NASDAQ national market under the symbol “PEBO”, and Peoples Bancorp is a member of the Russell 3000 index of US publicly traded companies. Learn more about Peoples Bancorp at www.peoplesbancorp.com.

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PEOPLES BANK ESTABLISHES ROBERT E. EVANS EDUCATION FUND

_________________________________________________

College scholarships to be awarded in memory of former Chairman and longtime CEO

June 17, 2005
Contact: Mark F Bradley, President and CEO
(740) 373-3155

MARIETTA, Ohio – Peoples Bank, National Association (“Peoples Bank), a subsidiary of Peoples Bancorp Inc. (Nasdaq: PEBO), today seeded the recently established “Robert E. Evans Education Fund” with a $100,000 contribution. This fund will be used for scholarships awarded to prospective students of Marietta College and/or other 4-year colleges or universities. The fund will be administered through and be a part of the Peoples Bancorp Foundation, Inc.

“Bob served us with distinction for many years,” said Mark F. Bradley, President and Chief Executive Officer of Peoples Bancorp Inc. “We will miss him and his contributions to our organization and to the communities we serve.” Evans, who served Peoples Bancorp Inc. and subsidiary Peoples Bank since 1970, died June 15, 2005, after a year-long illness. Evans was President and CEO of Peoples Bancorp Inc. from 1980 to 2005.

“Bob promoted a culture of continuous learning at our company,” continued Bradley. “Our Boards of Directors are honoring his 35 years of dedication and his focus on and passion for education by starting a scholarship fund to help local students earn a higher education.”

The scholarships will be awarded on an annual basis to prospective college students in the communities served by Peoples Bancorp Inc. Financial need and minimum GPA requirements will be considered. A scholarship committee will be formed to administer the grants program.

“For 25 years, Bob was a Trustee at Marietta College and served as Chairman of the Marietta College Trustees from 1982 to 1992,” said Bradley. “He always had a special place in his heart for Marietta College and similar schools like Ohio Northern University, his alma mater. We hope the scholarship fund has a lasting impact, like Bob did on our company and in our communities.”

Tax-deductible contributions to the Robert E. Evans Education Fund can be made to the Peoples Bancorp Foundation, Inc., Beth Worthington, Treasurer, 138 Putnam Street, P.O. Box 738, Marietta, Ohio 45750.

Peoples Bancorp Inc., a diversified financial products and services company with $1.8 billion in assets, makes available a complete line of banking, investment, insurance, and trust solutions through 50 locations and 33 ATMs in Ohio, West Virginia and Kentucky. Peoples Bancorp’s financial service units include Peoples Bank, Peoples Financial Advisors (a division of Peoples Bank) and Peoples Insurance Agency, Inc. Peoples Bancorp’s common shares are traded on the NASDAQ national market under the symbol “PEBO”, and Peoples Bancorp is a member of the Russell 3000 index of US publicly traded companies. Learn more about Peoples Bancorp at www.peoplesbancorp.com.

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PEOPLES BANCORP INC. CHAIRMAN DIES AFTER ILLNESS
_______________________________________________________

June 16, 2005
Contact: Mark F Bradley, President and CEO
(740) 373-3155

MARIETTA, Ohio - Robert E. Evans, who served Peoples Bancorp Inc. (Nasdaq: PEBO)(“Peoples”) and subsidiary Peoples Bank, National Association (“Peoples Bank”) for 35 years, died late Wednesday June 15, 2005, after a year-long illness. He was 65.

“Bob was a remarkable person who made a lasting impact on those around him,” said Mark F. Bradley, President and Chief Executive Officer of Peoples. “He served with great distinction, and his leadership built a culture of integrity and success that will be his legacy.”

Evans had been battling stomach cancer and receiving follow up treatments since mid-2004.

“Bob put up a tremendous fight against his illness,” continued Bradley. “He conducted himself with determination, professionalism, and dignity. Everyone at Peoples extends the deepest sympathies to Bob’s family.”

As Peoples’ President and CEO, and later as Chairman, Evans led the company from $145 million in total assets and $1.1 million in earnings to $1.8 billion in assets and $18.3 million in earnings in 2004. In the past 20 years under Evans, total shareholder return on Peoples stock has exceeded 18% on an average annual basis, and Peoples Bancorp has increased its dividend to shareholders 39 consecutive years.

Evans joined Peoples Bank in 1970 as a trust officer, and started the Peoples Bancorp Inc. holding company in 1980, serving as its CEO until his retirement on May 31, 2005.

“Bob’s influence went further than the Peoples’ board room,” said Bradley. “He lived our core values in every way, and was committed to enhancing the communities where we live and do business.”

Evans also served on various community boards of directors, including as trustee of Marietta College, trustee of the Washington County (Ohio) Community Improvement Corporation, and trustee of the Southeastern Ohio Port Authority. Evans also served as a Federal Home Loan Bank director and with other banking associations throughout his 35-year career.

Evans is survived by his wife, three children, and four grandchildren.

At a Board meeting later today, the Peoples Board of Directors is expected to reconfirm the election of Joseph H. Wesel as Chairman of the Board. Wesel served previously as Chairman of the Board of Directors from 1991 through 2003 and as Chairman of the Board, pro tem., beginning June 9, 2005. Wesel has also served as Leadership Director. Paul T. Theisen was elected to the position of Vice Chairman on June 9, 2005, and will continue in that role. Theisen has served on the Board of Directors since 1980.

Peoples Bancorp Inc., a diversified financial products and services company with $1.8 billion in assets, makes available a complete line of banking, investment, insurance, and trust solutions through 50 locations and 33 ATMs in Ohio, West Virginia and Kentucky. Peoples Bancorp’s financial service units include Peoples Bank, Peoples Financial Advisors (a division of Peoples Bank) and Peoples Insurance Agency, Inc. Peoples Bancorp’s common shares are traded on the NASDAQ national market under the symbol “PEBO”, and Peoples Bancorp is a member of the Russell 3000 index of US publicly traded companies. Learn more about Peoples Bancorp at www.peoplesbancorp.com.

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PEOPLES BANCORP INC.’S ROBERT E. EVANS RETIRES AS CEO
______________________________________________

May 31, 2005
Contact: Mark F Bradley, President and CEO
(740) 373-3155

MARIETTA, Ohio - Peoples Bancorp Inc. (NASDAQ: PEBO) announced that, effective May 31, 2005, Robert E. Evans retired as Chief Executive Officer of Peoples Bancorp Inc. (“Peoples Bancorp”) and its banking subsidiary Peoples Bank, National Association (“Peoples Bank”). Evans will continue as Chairman of the Board and a Director of both Peoples Bancorp and Peoples Bank.

As part of a succession plan announced in February 2005, Mark F. Bradley has been named President and CEO of both Peoples Bancorp and Peoples Bank effective May 31, 2005.

“I think the time is right for Mark to assume the CEO leadership of our companies,” said Evans. “I plan to continue with Peoples Bancorp as Chairman of the Board, but have more time for attention to my family, friends and health.”

Evans had previously planned to retire as CEO on June 30, 2005.

“We have a strong management team that is focused on continuing Peoples Bancorp’s long-term success, and their skill and dedication permit me to take a less active role.” Evans continued. “My 25 years as Chief Executive Officer of Peoples Bancorp have provided me with many opportunities to serve customers and shareholders. The Board of Directors and I support Mark and our executive team’s efforts to grow shareholder value.”

Evans, 65, has been Chief Executive Officer of Peoples Bancorp since 1980 and with Peoples Bank since 1970. He had also served as President of Peoples Bancorp until mid-2004.

Bradley, 35, has served as President and Chief Operating Officer of Peoples Bank since 2002. He became Chief Operating Officer of Peoples Bancorp in 2003, and President of Peoples Bancorp in mid-2004.

Peoples Bancorp Inc., a diversified financial products and services company with $1.8 billion in assets, makes available a complete line of banking, investment, insurance, and trust solutions through 50 locations and 33 ATMs in Ohio, West Virginia and Kentucky. Peoples Bancorp’s financial service units include Peoples Bank, Peoples Financial Advisors (a division of Peoples Bank) and Peoples Insurance Agency, Inc. Peoples Bancorp’s common shares are traded on the NASDAQ national market under the symbol “PEBO”, and Peoples Bancorp is a member of the Russell 3000 index of US publicly traded companies. Learn more about Peoples Bancorp at www.peoplesbancorp.com.

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PEOPLES BANCORP INC. DECLARES SECOND QUARTER DIVIDEND
___________________________________________________________

May 13, 2005
Contact: Mark F Bradley, President and Chief Operating Officer
(740) 373-3155

MARIETTA, Ohio - The Board of Directors of Peoples Bancorp Inc. (NASDAQ: PEBO) today declared a cash dividend of $0.19 per share payable on July 1, 2005, to shareholders of record at June 15, 2005.

The second quarter dividend reflects a payout of approximately $2.0 million based on 10.5 million shares outstanding at May 12, and reflects a 5.6% increase over the $0.18 per share dividend paid in the second quarter of 2004.

Peoples Bancorp Inc., a diversified financial products and services company with $1.8 billion in assets, makes available a complete line of banking, investment, insurance, and trust solutions through 50 locations and 33 ATMs in Ohio, West Virginia and Kentucky. Peoples’ financial service units include Peoples Bank, Peoples Financial Advisors (a division of Peoples Bank) and Peoples Insurance Agency, Inc. Peoples’ common shares are traded on the NASDAQ national 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.

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PEOPLES BANCORP INC. REPORTS FIRST QUARTER
RESULTS OF OPERATIONS
____________________________________________________

April 21, 2005
Contact: John W Conlon, Chief Financial Officer
(740) 373-3155

MARIETTA, Ohio - Peoples Bancorp Inc. (“Peoples”)(NASDAQ: PEBO) announced today first quarter of 2005 net income of $5,058,000, or $0.48 per diluted share, compared to $5,366,000, or $0.50 per diluted share, earned a year ago.  Peoples’ lower earnings were primarily attributable to reduced levels of net interest income, which offset increases in net revenues generated by acquisitions completed during 2004.

“Our first quarter earnings, although lower than last year, were in line with our expectations considering the interest rate pressures caused by intense competition for loans and deposits, a flattening yield curve and the methodical increase in interest rates,” commented Robert E. Evans, Chairman and CEO.  “We remain committed to reducing our reliance on net interest income and are pleased with the growth in non-interest revenues during the first quarter.”

Earnings in the first quarter of 2005 include the impact of some significant transactions, which resulted in a net pre-tax gain of $54,000.  Peoples recognized a net gain on securities transactions and asset disposals of $241,000 ($157,000 after-tax), with nearly all of the gain resulting from the sale of an investment security due to a merger of the issuer with an unrelated company.  This gain was largely offset by a net loss of $187,000 ($122,000 after-tax) on the sale of $11.6 million of long-term fixed-rated mortgage loans, acquired during the fourth quarter of 2004 as part of Peoples’ acquisition of two banking offices in the Ashland, Kentucky area.  These loans were sold due to their associated interest rate risk in the current rate environment.

Non-interest income, excluding net gains on securities and other assets, was $7,127,000 for the three months ended March 31, 2005, up 48% from $4,825,000 for the same period in 2004.  The insurance agencies acquired in mid-2004 accounted for $2.3 million of this increase and resulted in insurance and investment commissions comprising the largest portion of non-interest revenues in the first quarter of 2005, totaling $2,654,000 versus $299,000 in 2004’s first quarter.  In addition, e-banking revenues, primarily ATM and debit card fees, remained strong during the first quarter, increasing 24% from a year ago as a result of higher debit card activity and additional cards issued to customers.  Traditional banking revenues, including deposit account service charges, continue to be a major source of non-interest revenue.  For the first three months of 2005, deposit account service charges were $2,274,000 compared to $2,253,000 for 2004’s first quarter.  Mortgage banking income totaled $117,000 in the first quarter of 2005, down from $199,000 a year ago.  This decline was the result of the previously mentioned loss of $187,000 on the sale of acquired fixed-rate loans.

“We are pleased with the impact of the acquired insurance agencies on revenue diversification at Peoples,” said Mark F. Bradley, President and Chief Operating Officer.  “As a result of recent acquisitions, non-interest income now comprises over 35% of total revenues, compared to 26% a year ago.” 

In the first quarter of 2005, non-interest expense was $12.7 million versus $10.3 million in 2004’s first quarter, with operating expenses relating to the acquired insurance agencies accounting for $1.5 million, or 60%, of the increase.  Other increased costs in the first quarter included salaries and benefits, professional fees and marketing costs.  Compared to the fourth quarter of 2004, non-interest expense was down slightly in the first quarter of 2005.

Salaries and benefits remain Peoples’ largest operating expense, totaling $6.7 million and $5.4 million for the first quarters of 2005 and 2004, respectively.  Associates added in conjunction with acquisitions during 2004 accounted for 70% of the $1.3 million increase in salaries and benefits.  Compared to the fourth quarter of 2004, total salaries and benefits were essentially unchanged.  Professional fees were up 46% in the first quarter of 2005 compared to a year ago, but down 6% from the prior quarter.  The increase in professional fees from a year ago reflects higher exam and audit fees associated with the new regulatory reporting environment under Sarbanes-Oxley.  Marketing costs totaled $381,000 in the first quarter, up from $108,000 in 2004’s first quarter, resulting from Peoples’ efforts to promote new deposit products and increase brand awareness in various markets.

Net interest income totaled $12,712,000 for the quarter ended March 31, 2005, down 6% compared to $13,548,000 a year ago and virtually unchanged from $12,734,000 for the fourth quarter of 2004.  The decline from 2004’s first quarter was largely attributable to a combination of the impact of the flattening yield curve on new loan pricing and yields on securities reinvestments, Peoples’ strategy to match fund selected long-term, adjustable rate commercial loans using borrowings with a similar interest rate risk profile, conversion of earnings assets for the purchase of business owned life insurance in early 2004 and an increase in borrowings to support non-earning assets.  These factors also caused net interest margin to compress to 3.27% in the first quarter of 2005, from 3.29% the prior quarter and 3.56% in the first quarter of 2004.

“Our ability to improve net interest income and margin continues to be challenged by relatively low security reinvestment yields and increased competitive pricing of loans and deposits,” said Jack Conlon, Peoples’ Chief Financial Officer.  “The Federal Reserve’s actions to increase interest rates have enabled loan yields to stabilize somewhat and eased some of the net interest pressures.  With the expectation of additional rate increases in 2005, we would like to maintain a slight asset sensitive risk position, which should benefit future earnings.”

During the first quarter, portfolio loans declined $10.1 million, to $1.01 billion at March 31, 2005, due to Peoples selling $11.6 million of fixed-rated mortgage loans, acquired during the fourth quarter of 2004.  As part of Peoples’ mortgage banking activities, $124.1 million of fixed-rate real estate loans previously sold into the secondary markets due to the associated interest rate risk, were being serviced at March 31, 2005 compared to $106.4 million at December 31, 2004.  Peoples also had $1.1 million of fixed-rate mortgage loans held for sale at March 31, 2005.

“Loan growth is a key factor in achieving our 2005 operating goals, even though the sale of the acquired fixed-rate loans reduced overall loan balances,” stated Bradley.  “Good loan originations in the first quarter of 2005 were offset by some expected loan payoffs in our commercial loan portfolio.  Our lenders remain committed to sound underwriting practices that should allow us to grow loans without exposing Peoples to unnecessary risk that could weaken our strong asset quality position.”

In the first quarter of 2005, the provision for loan losses was $441,000, compared to $794,000 a year ago, and $531,000 in the fourth quarter of 2004.  The lower provision was based on management’s quarterly evaluation of factors affecting losses and is directionally consistent with Peoples’ continued strong asset quality in the loan portfolio, recent loss experience and recoveries of previously charged-off loans during the first quarter.  Nonperforming loans comprised 0.72% of total loans at March 31, 2005, compared to 0.64% at December 31, 2004, while nonperforming assets comprised 0.46% and 0.43% of total assets for the same periods, respectively.  The increase in nonperforming assets is attributable to Peoples placing a small number of loans on nonaccrual status during the quarter, which offset the decline in other real estate owned.  Management does not anticipate any significant losses on these loans since they are adequately collateralized.

“One of our successes over the last decade has been maintaining asset quality comparable to, or better than, many of our peers,” commented Bradley.  “Nonperforming loans continue to comprise less than 1% of total loans.  We remain diligent in our loan review process and collection efforts in order to identify and deal with problem loans early, which should minimize the amount of any losses.”

Net chargeoffs were down 16% in the first quarter of 2005 compared to a year ago.  Real estate loans comprised the largest portion of net chargeoffs in 2005’s first quarter, totaling $315,000 versus $155,000 a year ago, while consumer loans accounted for $61,000 of 2005’s first quarter net chargeoffs, compared to $275,000 in the first quarter of 2004.  At March 31, 2005, the allowance for loan losses was $14.7 million, or 201.3% of nonperforming loans, compared to $14.8 million, or 225.6% of nonperforming loans, at year-end 2004.

At March 31, 2005, total deposits were $1.10 billion, up $33.7 million from $1.07 billion at year-end 2004.  Interest-bearing deposits grew $29.6 million to $946.0 million, with $21.8 million attributable to increased public funds and $14.9 million due to additional brokered deposits.  Peoples also grew non-interest-bearing deposits $4.1 million during the quarter, reflecting management’s focus on growing core deposits.

“Overall, we are pleased with our first quarter results,” summarized Bradley.  “As anticipated, the interest rate environment continues to challenge net interest income.  We remain committed to enhancing long-term shareholder value through diversified revenue growth and Peoples’ long history of consistent dividend growth.”  

Peoples Bancorp Inc., a diversified financial products and services company with $1.8 billion in assets, makes available a complete line of banking, investment, insurance, and trust solutions through 51 locations and 33 ATMs in Ohio, West Virginia and Kentucky.  Peoples’ financial service units include Peoples Bank, Peoples Financial Advisors (a division of Peoples Bank) and Peoples Insurance Agency, Inc.  Peoples’ common shares are traded on the NASDAQ national 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 results of operations today at 11:00 a.m. eastern time, with members of Peoples’ executive management participating.  Analysts, media and individual investors are invited to participate in the conference call by calling (888) 424-5801.  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 or download and install the necessary software.  A replay of the call will be available on Peoples’ website in the “Investor Relations” section for 1 year.

Safe Harbor Statement:
This press 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 press release, the matters discussed in this press release, and other statements identified by words such as “expects,” “believes,” “plans,”  “will,” “would,” “should,” “could” and similar expressions are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Rule 175 promulgated thereunder, and Section 21E of the Securities Exchange Act of 1934, as amended, and Rule 3b-6 promulgated thereunder.  These forward-looking statements are subject to risks and uncertain­ties that may cause actual results to differ materially.  Factors that might cause such a difference include, but are not limited to: (1) competitive pressures among depository institutions which may increase significantly; (2) changes in the interest rate environment which may adversely impact interest margins; (3) prepayment speeds, loan originations and sale volumes, charge-offs and loan loss provisions may be less favorable than expected; (4) general economic conditions are less favorable than expected; (5) political developments, wars or other hostilities may disrupt or increase volatility in securities markets or other economic conditions; (6) legislative or regulatory changes or actions may adversely affect Peoples’ business; (7) changes and trends in the securities markets; (8) a delayed or incomplete resolution of regulatory issues that could arise; (9) the impact of reputational risk created by these developments on such matters as business generation and retention, funding and liquidity; (10) 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; (11) the integration of acquired businesses, including the insurance agencies acquired in mid-2004, may not be successful or the integration may take longer to accomplish than expected; (12) the expected synergies from acquisitions may make it difficult to maintain relationships with clients, associates and suppliers; 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”).  Peoples does not commit to any obligation to release revisions to these forward-looking statements or reflect events or circumstances after the date of this release.  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.

Please click here to view the complete earnings release.

 

 

Webcast Alert: Peoples Bancorp First Quarter Earnings Release Conference Call
___________________________________________________________

April 14, 2005

MARIETTA, Ohio, April 14 /PRNewswire-FirstCall/ -- Peoples Bancorp Inc. (Nasdaq: PEBO) plans to release earnings results for the quarter ended March 31, 2005 before the market opens on April 21, 2005. The release will be followed by a facilitated conference call beginning at 11:00 a.m. Eastern time.

To access this conference call, please dial 1-888-424-5801, or click here to listen online.

What: The Peoples Bancorp Inc. First Quarter Earnings Release Webcast

When: Thursday, April 21, 2005 at 11:00 a.m. Eastern

How: Live over the Internet -- Click here to access the webcast conference.

Contact: Peoples Bancorp Inc., Marietta

Mark F. Bradley, 740-373-3155

Chief Operating Officer

If you are unable to participate during the live web cast, the call will be archived on the Web site http://www.peoplesbancorp.com.

Peoples Bancorp Inc., a diversified financial products and services company with $1.8 billion in assets, makes available a complete line of banking, investment, insurance, and trust solutions through 50 locations and 33 ATMs in Ohio, West Virginia and Kentucky. Peoples Bancorp's financial service units include Peoples Bank, Peoples Financial Advisors (a division of Peoples Bank) and Peoples Insurance Agency, Inc. Peoples Bancorp's common shares are traded on the NASDAQ national market under the symbol "PEBO", and Peoples Bancorp is a member of the Russell 3000 index of US publicly traded companies. Learn more about Peoples Bancorp at http://www.peoplesbancorp.com.

END OF RELEASE

 

PEOPLES BANCORP INC.’S ROBERT E. EVANS TO RETIRE AS CEO; WILL REMAIN CHAIRMAN OF THE BOARD AND DIRECTOR ___________________________________________________________

President Mark F. Bradley Named as Successor CEO

February 11, 2005
Contact: Robert E Evans, Chairman and CEO
(740) 373-3155

MARIETTA, Ohio - Peoples Bancorp Inc. (NASDAQ: PEBO) today announced Robert E. Evans’ decision to retire as Chief Executive Officer of both Peoples Bancorp Inc. (“Peoples Bancorp”) and its banking subsidiary Peoples Bank, National Association (“Peoples Bank”), effective June 30, 2005. Evans will continue as Chairman of the Board and a Director of both Peoples Bancorp and Peoples Bank.

Current President and Chief Operating Officer Mark F. Bradley, has been named to succeed Evans as Chief Executive Officer, effective upon Evans’ retirement from Peoples Bancorp and Peoples Bank. As Chairman of the Board of Directors, Evans will serve as a non-executive officer of Peoples Bancorp and Peoples Bank.

“This action has been part of my plan of orderly progression, and contemplated for some time,” said Evans. “It has been my intention to build a strong, skilled management team to continue Peoples Bancorp’s long-term success. Being able to appoint someone from current management demonstrates the strength of our leadership team.”

Evans, 64, has been Chief Executive Officer of Peoples Bancorp since 1980 and with Peoples Bank since 1970. He had also served as President of Peoples Bancorp until mid-2004. Under Evans’ leadership, Peoples Bancorp has grown from $140 million in assets and $1 million of net income in 1980 to $1.8 billion in assets and $18 million of net income in 2004. During the 35 years since Evans joined the organization, it has grown from offices in three communities in Washington County, Ohio, to 50 offices in Ohio, West Virginia, and Kentucky, employing nearly 600 associates.

“Mark has a good background and the financial skills to lead this organization,” continued Evans. “He understands the value of customer service and the strategies needed to grow shareholder value. As Chairman, I will continue to support him, our management team, my fellow directors, and our shareholders.”

“I look forward to my new role as CEO,” commented Bradley, who was appointed President and Chief Operating Officer of Peoples Bank in 2002, Chief Operating Officer of Peoples Bancorp in 2003, and President of Peoples Bancorp in mid-2004. “With our talented and dedicated management team, I am confident we will continue to grow the organization in a manner that is beneficial to our customers, shareholders, and associates.”

Bradley, 35, joined Peoples Bancorp in 1991, served as Controller of both Peoples Bancorp and Peoples Bank from 1997 to 2001, and also served as an Executive Vice President of Peoples Bancorp.

“The interests of our stakeholders will continue to drive our strategies,” said Evans. “I plan to remain active in the company as Chairman of the Board of Directors, and provide guidance on long-range plans as we look to continue the expansion of our markets, products, and services.”

Peoples Bancorp Inc., a diversified financial products and services company with $1.8 billion in assets, makes available a complete line of banking, investment, insurance, and trust solutions through 50 locations and 33 ATMs in Ohio, West Virginia and Kentucky. Peoples Bancorp’s financial service units include Peoples Bank, Peoples Financial Advisors (a division of Peoples Bank) and Peoples Insurance Agency, Inc. Peoples Bancorp’s common shares are traded on the NASDAQ national market under the symbol “PEBO”, and Peoples Bancorp is a member of the Russell 3000 index of US publicly traded companies. Learn more about Peoples Bancorp at www.peoplesbancorp.com.

END OF RELEASE

 

PEOPLES BANCORP INC. INCREASES QUARTERLY DIVIDEND
_____________________________________________________________

February 10, 2005
Contact: Mark F Bradley, President and Chief Operating Officer
(740) 373-3155

MARIETTA, Ohio - The Board of Directors of Peoples Bancorp Inc. (NASDAQ: PEBO) today declared a cash dividend of $0.19 per share payable on April 1, 2005, to shareholders of record at March 15, 2005.

The first quarter dividend reflects an increase of 5.6% from the $0.18 per share paid in the prior quarter and represents a payout of approximately $2.0 million based on 10.5 million shares outstanding at February 10, 2005.

“The Board's decision to increase the quarterly cash dividend reflects our commitment to enhance shareholder return and is consistent with the greater emphasis on dividends,” said Mark F. Bradley, Peoples’ President and Chief Operating Officer. “The increased dividend also positions Peoples to continue our history of dividend growth, assuming earnings provide sufficient capital and market conditions allow.”

The annualized 2005 dividend of $0.76 equates to a yield of 2.8% based on Peoples Bancorp’s closing stock price of $26.80 on February 9, 2005.

Peoples Bancorp Inc., a diversified financial products and services company with $1.8 billion in assets, makes available a complete line of banking, investment, insurance, and trust solutions through 50 locations and 33 ATMs in Ohio, West Virginia and Kentucky. Peoples’ financial service units include Peoples Bank, Peoples Financial Advisors (a division of Peoples Bank) and Peoples Insurance Agency, Inc. Peoples’ common shares are traded on the NASDAQ national 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.

Safe Harbor Statement:
This press 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 press release, the matters discussed in this press release, and other statements identified by words such as “expects,” “believes,” “plans,” “will,” “would,” “should,” “could” and similar expressions are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Rule 175 promulgated thereunder, and Section 21E of the Securities Exchange Act of 1934, as amended, and Rule 3b-6 promulgated thereunder. These forward-looking statements are subject to risks and uncertain­ties that may cause actual results to differ materially. Factors that might cause such a difference include, but are not limited to: (1) competitive pressures among depository institutions increase significantly; (2) changes in the interest rate environment which adversely impact interest margins; (3) prepayment speeds, loan sale volumes, charge-offs and loan loss provisions are less favorable than expected; (4) general economic conditions are less favorable than expected; (5) political developments, wars or other hostilities may disrupt or increase volatility in securities markets or other economic conditions; (6) legislative or regulatory changes or actions which adversely affect Peoples’ business; (7) changes and trends in the securities markets; (8) a delayed or incomplete resolution of regulatory issues; (9) the impact of reputational risk created by these developments on such matters as business generation and retention, funding and liquidity; (10) the outcome of regulatory and legal proceedings and (11) 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”). Peoples does not commit to any obligation to release revisions to these forward-looking statements or reflect events or circumstances after the date of this release. Copies of documents filed with the SEC are available free of charge at the Commission’s website at http://www.sec.gov and/or from Peoples’ website.

END OF RELEASE

 

PEOPLES BANCORP INC. REPORTS 2004 RESULTS OF OPERATIONS
________________________________________________

January 20, 2005
Contact: John W Conlon, Chief Financial Officer
(740) 373-3155

MARIETTA, Ohio - Peoples Bancorp Inc. (NASDAQ: PEBO) announced net income of $2,718,000, or $0.26 per diluted share, for the fourth quarter of 2004 compared to a net loss of $139,000, or $0.01 per diluted share, a year ago.  For the year ended December 31, 2004, net income totaled $18,275,000, or $1.71 per diluted share, up from $16,254,000, or $1.52 per diluted share, earned in 2003.

Earnings in the fourth quarter of 2004 were reduced by $2,596,000 ($1,688,000 after-tax) of charges relating to the previously announced repositioning of a portion of the investment portfolio; a write down of $128,000 ($83,000 after-tax) on real estate values of bank offices consolidated into other Peoples’ banking centers; plus an other-than-temporary impairment charge of $490,000 ($319,000 after-tax) related to an investment in Fannie Mae (“FNMA”) preferred stock.  The net loss in 2003’s fourth quarter was the result of balance sheet restructuring and other balance sheet charges of  $7,462,000 ($5,372,000, after tax). 

“In the fourth quarter, we continued to prepare the balance sheet for the expected increases in interest rates and we incurred increased costs to comply with the Sarbanes-Oxley requirements.  Also, some operations in our branch network were consolidated to improve our product service and delivery efficiency,” commented Robert Evans, Chairman and CEO.  "Consistent with the greater emphasis on dividends, we continued the dividend growth by 11.6% to $0.72 in 2004, marking the 39th consecutive year of dividend increases.”

Evans continued, “Non-interest revenues are expected to be higher in 2005, due in part to a full year’s impact of recent acquisitions that are not directly impacted by the interest rate environment.  Also, our lenders continue to originate quality loans, which should strengthen future earnings streams.”

At the close of business on December 3, 2004, Peoples Bank completed the acquisition of two full-service banking offices in the Ashland, Kentucky market from Advantage Bank, a subsidiary of Camco Financial Corporation.  In the acquisition, Peoples acquired approximately $64 million in deposits and $43 million of loans.  Concurrent with the acquisition, Peoples consolidated some of its Ashland, Kentucky area banking offices.  Peoples Bank’s Flatwoods office and the acquired office in downtown Ashland were consolidated into nearby Peoples Bank offices at the close of business on December 3, 2004.  Also, the Peoples Bank Cedar Knoll office ceased operations at the close of business on December 27, 2004, with clients redirected to Peoples Bank’s newly acquired office in Summit, Kentucky.  Management expects this acquisition to be accretive to 2005 earnings.

In the fourth quarter of 2004, Peoples repositioned a portion of its investment portfolio by selling approximately $85 million of fixed-rate securities, consisting primarily of mortgage-backed securities purchased in a historic low rate environment, and reinvested the net proceeds in other investment securities, primarily variable rate mortgage-backed securities.  The securities sold were selected because management wanted to shorten the estimate life of the portfolio and expected the securities sold to underperform in a rising rate environment.  While this repositioning is expected to have a minimal impact on short-term yields, the new securities have shorter estimated lives and duration than the securities sold, which should improve the overall long-term performance of the investment portfolio as interest rates return to more historic levels.

Also during the fourth quarter of 2004, Peoples recorded a charge of $490,000 on an investment in FNMA preferred stock included in Peoples’ available-for-sale investment portfolio.  Management does not believe that the current market value of this instrument reflects the true long-term economic value of the investment since the market value should improve as this investment gets closer to its repricing date.  Previously, the unrealized loss on this investment grade preferred stock had been reflected as a reduction of Peoples’ equity and included in accumulated comprehensive income, net of deferred taxes, a separate component of stockholders’ equity.  Additionally, the write-down in value of the investment is not expected to have an impact on Peoples’ future operating earnings or cash flows. 

In the fourth quarter of 2004, net interest income totaled $12,734,000, down 1% compared to $12,885,000 in 2003’s fourth quarter.  Net interest margin was 3.29% for the fourth quarter of 2004, compared to 3.34% for the prior quarter and 3.32% for the fourth quarter of 2003.  For the year ended December 31, 2004, net interest income totaled $51,870,000 and net interest margin was 3.39%, versus $53,605,000 and 3.52%, respectively, for the same period in 2003. 

“Competition for quality loans and deposits remains intense, especially as rates continue to rise, which negatively impacts net interest income and margin,” said Jack Conlon, Peoples’ Chief Financial Officer.  “Our actions over the last year to position the balance sheet for the expected eventual increase in rates has produced some benefits, although net interest margin has been negatively affected in the near term.  However, we continue to shift to longer-term funding to lock in rates and match fund selected long-term three- and five-year adjustable rate commercial loans, which has offset any improvement in current asset yields.  Our proactive management of Peoples’ interest rate risk position and recent rate risk management actions, such as the investment portfolio repositioning, should minimize the impact of future rate increases on earnings by maintaining a slightly asset sensitive risk position.”

Non-interest income continues to benefit from recent acquisitions, particularly the insurance agencies acquired during the second quarter of 2004.  Non-interest income grew 48% in the fourth quarter of 2004, totaling $7.0 million compared to $4.8 million a year ago, due in large part to the $1.8 million of revenues generated by the acquired insurance agencies.  For the year ended December 31, 2004, non-interest income was up 39% to $25.4 million, from $18.3 million for the same period last year, with $4.7 million due to increased insurance commissions.  A full year’s impact of the Kentucky Bancshares acquisition completed in mid-2003 and additional business owned life insurance also were contributors to the non-interest revenue growth. 

“Acquisitions continue to serve as a means of growing and diversifying our revenues and decreasing our reliance on margin based revenues,” stated Mark Bradley, Peoples’ President and Chief Operating Officer.  “The efforts of our sales associates have also grown other revenue sources, including deposit account service charges and e-banking revenues.”

Deposit account service charges remain Peoples’ largest non-interest income source, totaling $2,414,000 in 2004’s fourth quarter versus $2,219,000 for the same period in 2003, a 9% increase.  This revenue growth is primarily attributable to a combination of higher volumes of overdraft and non-sufficient funds fees and an overall increase in the number of checking accounts, as well as an increase in the per item amount of certain cost recovery fees.  As a result of Peoples’ $20 million BOLI purchase in early 2004, BOLI produced tax-advantaged income of $483,000 in the fourth quarter of 2004 versus $343,000 a year ago.  E-banking revenues, primarily ATM and debit card fees, grew 18% from the same quarter a year ago. 

In the fourth quarter of 2004, non-interest expense was $12.8 million versus $17.3 million in 2003’s fourth quarter.  This decline is attributable to Peoples incurring FHLB (Federal Home Loan Bank) advance prepayment fees of $6.8 million last year as part of a balance sheet restructuring, which more than offset current year increases primarily attributable to recent acquisitions and increased professional service costs related to compliance with Sarbanes-Oxley legislation.  Other increased costs in the fourth quarter included salaries and benefits, occupancy costs and intangible amortization.  Compared to the third quarter of 2004, non-interest expense was up 2% in the fourth quarter, with the additional professional fees, as part of Peoples compliance with new Sarbanes-Oxley regulatory requirements, accounting for $325,000 of the increase, or $0.02 per share after-tax.

“We experienced an increase in operating expenses in the fourth quarter from acquisitions and compliance with new regulatory reporting requirements,” commented Bradley.  “We continue to monitor costs and adjust our sales compensation structure as part of our efforts to enhance Peoples’ operating efficiency.”

Salaries and benefits, Peoples’ largest operating expense, totaled $6.7 million for the fourth quarter of 2004, an increase of 32%, or $1.6 million, from a year ago.  About 60% of the increase was attributable to the associates added in conjunction with acquisitions during 2004.  Compared to the third quarter of 2004, salaries and benefits were essentially unchanged.  Professional fees were up 43% in the fourth quarter of 2004 compared to a year ago, as Peoples worked to comply with new reporting requirements mandated by the Sarbanes-Oxley Act, which apply to all publicly traded companies.

During the fourth quarter, loans grew $65.2 million, to $1.02 billion at December 31, 2004, a result of acquired loans of $43 million and internally generated loans of $21.9 million (or 9% annualized growth), which were primarily commercial real estate loans.  As part of Peoples’ mortgage banking activities, $106 million of fixed-rate real estate loans previously sold into the secondary markets due to the associated interest rate risk, are being serviced at December 31, 2004 compared to $76.1 million at December 31, 2003.  Since year-end 2003, total loans were up $108.1 million, or 12%, at December 31, 2004, with $64.8 million of the growth the result of internal loan originations.

"One of our successes in 2004 was the ability of our lenders to originate quality loans, which preserves our already strong asset quality,” stated Bradley.  “Economic conditions continue to show some improvement in our markets and commercial loan demand remains reasonably strong, which should provide our lenders with opportunities to generate additional loans.”

In the fourth quarter of 2004, the provision for loan losses was $531,000, compared to $915,000 a year ago, and $605,000 in the third quarter of 2004.  The lower provision is directionally consistent with Peoples’ asset quality in the loan portfolio during the fourth quarter.  Nonperforming loans comprised 0.64% of total loans at December 31, 2004, compared to 0.53% at September 30, 2004, and 0.73% at December 31, 2003, while nonperforming assets comprised 0.43%, 0.30% and 0.41% of total assets for the same periods, respectively.  Nearly all of the increase in nonperforming assets is attributable to a single restructured loan of $1.1 million and Peoples reclassifying the net value, totaling $752,000, of the recently closed offices, previously recorded as bank premises to other real estate owned in anticipation of their eventual sale. 

"Our lenders remain dedicated to maintaining asset quality as we work to grow loans in a disciplined manner,” commented Bradley.  “While nonperforming assets were up due to the consolidation of some banking offices and the renegotiation of a single commercial loan, we do not expect any losses in the near term.  Our evaluation of factors affecting probable loan losses is ongoing, and we feel our continuing focus on asset quality should result in loan loss provisions (exclusive of Overdraft Privilege provisions), that are comparable to recent levels.”

Net chargeoffs were down 24% in the fourth quarter of 2004 compared to a year ago.  Net chargeoffs relating to the Overdraft Privilege Program comprised the largest portion of the 2004 fourth quarter net chargeoffs, totaling $232,000 versus $216,000 a year ago.  Real estate loan net chargeoffs were also a significant portion of total net chargeoffs, comprising $183,000 in the fourth quarter 2004 versus $72,000 a year ago.  At December 31, 2004, the allowance for loan losses was $14.8 million, or 225.6% of nonperforming loans, compared to $14.6 million, or 216.1% of nonperforming loans, at year-end 2003.

At December 31, 2004, total deposits were $1.07 billion, up $40.9 million from $1.03 billion a year ago.  Excluding the deposits acquired in the fourth quarter, total deposits were down $23.7 million primarily due to intense competition for deposits, particularly certificates of deposits and other high-cost funds, during this period of rising interest rates.  Although interest-bearing deposits declined, Peoples has grown non-interest-bearing deposits, excluding acquired deposits, $17 million, reflecting management’s focus on growing core deposits and adjusting the overall mix of deposits to lower cost funds.

"Overall, our results reflect the numerous challenges encountered in 2004,” summarized Bradley.  “With interest rates continuing to increase, prospects for loan growth, and continued strong asset quality, we look for better operating earnings in 2005.  The flattening yield curve causes some concern, so expense control continues to be a major focus in these tougher times of net interest income growth.  Achieving our goals for non-interest income growth involve increased cross-sales throughout our product lines.”  

Peoples Bancorp Inc., a diversified financial products and services company with $1.8 billion in assets, makes available a complete line of banking, investment, insurance, and trust solutions through 50 locations and 33 ATMs in Ohio, West Virginia and Kentucky.  Peoples’ financial service units include Peoples Bank, Peoples Financial Advisors (a division of Peoples Bank) and Peoples Insurance Agency, Inc.  Peoples’ common shares are traded on the NASDAQ national 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 2004 results of operations today at 11:00 a.m. eastern time, with members of Peoples’ executive management participating.  Analysts, media and individual investors are invited to participate in the conference call by calling (888) 424-5801.  A simultaneous Webcast of the conference call audio will be available online via the home page and/or Investor Relations section of 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 or download and install the necessary software.  A replay of the call will be available on Peoples’ website for 1 year.

Safe Harbor Statement:
This press 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 press release, the matters discussed in this press release, and other statements identified by words such as “expects,” “believes,” “plans,”  “will,” “would,” “should,” “could” and similar expressions are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Rule 175 promulgated thereunder, and Section 21E of the Securities Exchange Act of 1934, as amended, and Rule 3b-6 promulgated thereunder.  These forward-looking statements are subject to risks and uncertain­ties that may cause actual results to differ materially.  Factors that might cause such a difference include, but are not limited to: (1) competitive pressures among depository institutions increase significantly; (2) changes in the interest rate environment which adversely impact interest margins; (3) prepayment speeds, loan sale volumes, charge-offs and loan loss provisions are less favorable than expected; (4) general economic conditions are less favorable than expected; (5) political developments, wars or other hostilities may disrupt or increase volatility in securities markets or other economic conditions; (6) legislative or regulatory changes or actions which adversely affect Peoples’ business; (7) changes and trends in the securities markets; (8) a delayed or incomplete resolution of regulatory issues; (9) the impact of reputational risk created by these developments on such matters as business generation and retention, funding and liquidity; (10) the outcome of regulatory and legal proceedings and (11) 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”).  Peoples does not commit to any obligation to release revisions to these forward-looking statements or reflect events or circumstances after the date of this release.  Copies of documents filed with the SEC are available free of charge at the Commission’s website at http://www.sec.gov and/or from Peoples’ website.

Please click here to request a copy of the complete earnings release.

 

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