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Investor Relations

2006 Press Releases

 

PEOPLES BANK TO BUILD NEW FINANCIAL SERVICES OFFICE IN HUNTINGTON, WEST VIRGINIA _______________________________________________

December 4, 2006

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

 

Marietta, OH – Peoples Bank, National Association (“Peoples Bank”) a subsidiary of Peoples Bancorp Inc., today announced expansion plans in Huntington, West Virginia.

Peoples Bank plans to construct a new financial services office at the corner of First Street and Fifth Avenue in downtown Huntington.  Completion of the full-service office, which will include an ATM and motor banking facilities, is expected to be completed in September 2007.

"The new site will add convenience for our existing customers, and also give us the opportunity to reach many new clients with our full-service offering of banking, insurance, investment and trust products,” said Mark F. Bradley, President and CEO of Peoples Bank.  “Huntington is a vibrant market, and we are excited to invest in the downtown area.”

Peoples Bank first entered the Huntington market in 1999, with the acquisition of a full-service banking office at 1126 20th Street.  Peoples Bank also operates five full-service offices in the Kentucky communities of Ashland, Russell, Greenup, Summit, and Grayson.

"We have seen strong growth in our Huntington office during the past few years, especially with commercial clients,” said Bradley.  “We believe expansion in this market gives us the opportunity to better develop new customer relationships, especially on the brokerage and insurance sides of our business.  The facility will also offer customers the ability to satisfy all their financial needs in one place, plus the convenience of drive-through banking and a 24-hour ATM.”  

Peoples Bancorp Inc. (Nasdaq: PEBO), 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 48 locations and 36 ATMs in Ohio, West Virginia and Kentucky.  Peoples Bancorp’s financial service units include Peoples Bank, Peoples Financial Advisors (wealth management services) and Peoples Insurance Agency, Inc. (including The Putnam Agency based in Ashland, Kentucky and Huntington, West Virginia).  Peoples Bancorp’s common shares are traded on the NASDAQ Global Select Market.  Peoples Bancorp Inc. is also 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 COMPLETES ACQUISITION OF BANKING OFFICE IN CARROLL, OHIO AND SALE OF OFFICE IN CHESTERHILL, OHIO
_______________________________________________

November 13 , 2006

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

 

MARIETTA, Ohio – Peoples Bank, National Association (“Peoples Bank”), a wholly-owned subsidiary of Peoples Bancorp Inc. (NASDAQ: PEBO), announced today that it has completed the acquisition of a full-service banking office in Carroll, Ohio and associated $5.6 million of deposits from First National Bank of McConnelsville (“First National Bank”), a wholly-owned subsidiary of FNB Shares, Inc.

In the transaction, First National Bank acquired Peoples Bank’s Chesterhill, Ohio office and associated $3.8 million of deposits.  The Carroll community is located 30 miles southeast of Columbus in Fairfield County and Chesterhill is located in Morgan County.

"This is a positive for the customers and shareholders of both companies,” said Mark F. Bradley, President and Chief Executive Officer of Peoples Bancorp Inc.  “It has been an honor to serve the Chesterhill community, and we are also excited to add another location and ATM access in the growing area between Lancaster and Columbus, Ohio.”

First announced in May 2006, the transaction was completed at the close of business on November 10, 2006.  Under terms of the agreement, Peoples Bank and First National Bank exchanged deposits and certain fixed assets of the banking offices with a settlement for the net book value of the fixed assets.  Peoples Bank also paid a 6% premium, or approximately $110,000, on the difference in the amount of deposits acquired.  Loans were retained at the originating financial institution.

Including the new Carroll location, Peoples Bank now operates four full-service banking facilities in Fairfield County.  Peoples Bank also recently opened a new office at the intersection of Ety Road and West Fair Avenue in Lancaster.

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 48 locations and 36 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 Global Select 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 FOURTH QUARTER DIVIDEND
_______________________________________________

November 9 , 2006

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 $0.21 per share payable on January 2, 2007, to shareholders of record at December 15, 2006.

“We are pleased to announce our 41st consecutive year of dividend growth for our shareholders,” said Mark F. Bradley, President and Chief Executive Officer.  “The increased dividends for 2006 reflect our commitment to enhance shareholder return through a greater emphasis on dividends.”

The fourth quarter dividend reflects a payout of approximately $2.3 million based on 10.7 million shares outstanding at November 10, and reflects a 5% increase over the $0.20 per share dividend paid in the fourth quarter of 2005. For 2006, dividends per share of $0.83 represent a 6% increase over the $0.78 per share paid for 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 48 locations and 35 ATMs in Ohio, West Virginia and Kentucky.  Peoples’ financial service units include Peoples Bank, National Association; Peoples Financial Advisors (a division of Peoples Bank) and Peoples Insurance Agency, Inc.  Peoples’ common shares are traded on the NASDAQ Global Select Market under the symbol “PEBO”, and Peoples is a member of the Russell 3000 index of US publicly traded companies.  Learn more about Peoples at www.peoplesbancorp.com. 

END OF RELEASE

 

 

PEOPLES BANCORP INC. REPORTS THIRD QUARTER RESULTS
_______________________________________________

October 24, 2006

Contact: Donald J Landers
Chief Financial Officer
(740) 373-3155

 

MARIETTA, Ohio - Peoples Bancorp Inc. (“Peoples”) (NASDAQ: PEBO) today reported net income of $5.3 million and diluted earnings per share of $0.50 for the third quarter of 2006, which matched the amounts reported for the third quarter of 2005.  For the third quarter of 2006, Peoples achieved a return on average equity of 11.05% and return on average assets of 1.13%, versus 11.61% and 1.14%, respectively, a year ago. 

"Our third quarter results were highlighted by higher non-interest income, strong loan growth, lower effective tax rate and a gain on the sale of a branch,” commented Mark F. Bradley, President and Chief Executive Officer.  “Third quarter results also reflect the interest rate challenges affecting the financial services industry due to intense competition for loans and deposits, coupled with higher loan loss provision associated with recent trends in loan quality.”

For the nine months ended September 30, 2006, Peoples’ net income totaled $16.8 million, up 13% from $14.8 million through nine months of 2005, while diluted earnings per share were $1.57 and $1.40, respectively, a 12% increase.  This improvement in net income and earnings per share from a year ago was the result of higher net interest income and non-interest revenues, coupled with lower non-interest expenses.  Return on average equity and return on average assets improved to 11.97% and 1.20%, respectively, from 11.19% and 1.09%, respectively, for the same period a year ago. 

Bradley continued, “In the third quarter, we completed the previously announced sale of our South Shore, Kentucky banking office and its approximately $5 million in deposits and $645,000 in loans, resulting in a pre-tax gain of $232,000.  We continue to serve customers in northern Kentucky through our remaining five Kentucky offices.”

Non-interest income totaled $7.3 million for the third quarter of 2006 versus $7.1 million a year ago, due to increased deposit account service charges and electronic banking revenues.  On a year-to-date basis, non-interest income grew 7%, or $1.5 million, from a year ago, to $23.0 million, due to higher insurance revenues, deposit account service charges and electronic banking income.  The improvements in non-interest income for the third quarter and first nine months of 2006 were partially offset by lower mortgage banking income and business owned life insurance, both of which have been negatively impacted by the current interest rate environment.

Total non-interest expense increased by 2% in the third quarter of 2006 to $12.8 million compared to 2005’s third quarter.  Additional maintenance and utility costs, along with marketing costs associated with Peoples’ deposit direct mail and gift program comprised the majority of the increase for the third quarter.  Tempering this increase were lower salaries and benefit costs as a result of salaries included in direct loan origination costs.  Through nine months of 2006, non-interest expense was down slightly compared to the same period in 2005, due primarily to declines in salaries and benefit costs and intangible amortization.

"While still not at targeted levels, we believe the overall expense growth in the third quarter was reasonable,” stated Bradley.  “Our efforts to diversify revenues also have helped to mitigate the effect of interest rate challenges on earnings.  We will continue to seek opportunities to improve operating efficiency and allocate resources to markets we believe have greater potential to increase long-term shareholder value.”

In the third quarter of 2006, net interest income was $12.9 million, down 2% from the $13.2 million generated in the third quarter of 2005.  While a higher volume of earning assets generated additional interest income, competitive loan pricing, combined with maturing deposits and debt being replaced at higher, current market interest rates, caused Peoples’ funding costs to rise faster than yields on earning assets.  Peoples’ net interest margin was 3.20% for the third quarter of 2006, compared to 3.32% a year ago and 3.29% for the prior quarter.  Both net interest income and net interest margin for the third quarter of 2006 were also negatively impacted by Peoples placing $4.5 million of loans from a single commercial relationship on nonaccrual status, resulting in the reversal of $97,000 of interest income in the third quarter of 2006.  On a year-to-date basis, net interest income totaled $39.8 million versus $38.8 million a year ago, while Peoples’ net interest margin dropped one basis point to 3.29%.

"Our third quarter net interest income and margin levels reflect the competitive interest rate environment in our markets and were in line with our expectations,” said Don Landers, Chief Financial Officer.  “We feel that the recent pauses by the Federal Reserve could ease some of the interest rate pressure and provide limited spread improvement in some segments of the yield curve.  Still, improving net interest income and margin will depend in part on our ability to grow lower cost core deposits and reduce our reliance on wholesale funding, while continuing to fund higher yielding loans with cash flows from our investment portfolio.”

For the nine months ended September 30, 2006, Peoples’ effective tax rate was 26.6% compared to 27.2% for the same period a year ago.  The reduction in the effective tax rate produced an effective tax rate of 21.7% for the third quarter of 2006.  The change in the estimated effective tax rate was attributable to additional alternative minimum tax credits expected to be realized in 2006.  The effective tax rate of 26.6% for the first nine months of 2006 is management’s current estimate of Peoples’ effective rate for full year 2006.  

During the third quarter of 2006, portfolio loans grew $25.6 million, or 9% annualized, to $1.14 billion at September 30, 2006.  Commercial real estate originations continue to represent the main driver of loan growth, while consumer loan balances, excluding overdrafts, grew for the sixth consecutive quarter, with indirect lending providing the majority of the $2.4 million of growth in the third quarter.  Since year-end 2005, total portfolio loans have increased $68.0 million, from $1.07 billion.

"Third quarter loan growth was the result of the successful efforts of our lenders to capitalize on lending opportunities in our more dynamic markets,” said Bradley.  “Additionally, loan payoffs have been below our expectations through the first nine months of 2006.  However, during October, we have already experienced significant commercial loan payoffs that will challenge fourth quarter loan growth.”

At September 30, 2006, nonperforming loans totaled $14.2 million, or 1.25% of total loans, up from $10.4 million, or 0.93% at June 30, 2006 and $6.5 million, or 0.61% at year-end 2005.  The third quarter increase in nonperforming loans was the result of the previously mentioned $4.5 million of commercial loans being placed on nonaccrual status, partially offset by reductions in other nonaccrual loans due to payments and charge-offs. 

At September 30, 2006, the allowance for loan losses was $16.1 million, or 113.5% of nonperforming loans, versus 148.0% and 225.2% of nonperforming loans at June 30, 2006 and December 31, 2005, respectively.  In the third quarter of 2006, the provision for loan losses was $929,000 compared to $573,000 last quarter and $485,000 in the third quarter of 2005, with provisions relating to overdrafts accounting for $254,000, $250,000 and $175,000 for the same periods, respectively.  The higher provision for loan losses for the third quarter of 2006 was based on management’s in-depth quarterly analysis of the loan portfolio and loss trends and is directionally consistent with changes in Peoples’ loan credit quality.  Net charge-offs were $126,000 in the third quarter of 2006 compared to $505,000 for last year’s third quarter and net recoveries of $86,000 in the second quarter of 2006.

"The higher level of nonperforming loans since year end is attributed to two commercial loan relationships,” added Bradley.  “We have considered these relationships in our evaluation of the adequacy of the allowance for loan losses at quarter-end.  We expect net charge-offs will be higher in the fourth quarter of 2006, which will reduce a portion of one of the groups of nonaccrual loans.  The other group of loans totaling $3.6 million are well collateralized and we do not expect to incur any losses on that commercial loan relationship.”

Deposit balances were up 7% to $1.23 billion at September 30, 2006, compared to $1.15 billion at June 30, 2006. During the third quarter, Peoples increased brokered deposits by $68.6 million to reduce its reliance on Federal Home Loan Bank borrowings and diversify wholesale funding sources.  Interest-bearing deposits, excluding brokered deposits, grew $10.3 million with most of the growth occurring in money market deposits.  Non-interest-bearing deposits were $166.5 million at September 30, 2006, versus $169.9 million at June 30, 2006, attributable to a decline in commercial deposit balances that offset higher consumer balances from Peoples’ deposit growth campaign initiated in late 2005.  Since year-end 2005, total deposits, excluding brokered deposits, have increased $53.5 million due primarily to increases in certificates of deposits and money market accounts. 

"In the fourth quarter, we will continue to work through the interest rate challenges affecting our ability to grow earnings,” said Bradley.  “We believe our strategies will be successful in creating long-term value for our shareholders.”

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 48 locations and 35 ATMs in Ohio, West Virginia and Kentucky.  Peoples’ financial service units include Peoples Bank, National Association; Peoples Financial Advisors (a division of Peoples Bank) and Peoples Insurance Agency, Inc.  Peoples’ common shares are traded on the NASDAQ Global Select Market under the symbol “PEBO”, and Peoples is a member of the Russell 3000 index of US publicly traded companies.  Learn more about Peoples at www.peoplesbancorp.com. 

Conference Call to Discuss Earnings:
Peoples will conduct a facilitated conference call to discuss third quarter of 2006 results of operations today at 11:00 a.m. eastern daylight time, with members of Peoples’ executive management participating.  Analysts, media and individual investors are invited to participate in the conference call by calling (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 news release may contain certain forward-looking statements with respect to Peoples’ financial condition, results of operations, plans, objectives, future performance and business.  Except for the historical and present factual information contained in this news release, the matters discussed in this news release, and other statements identified by words such as “feel,” “expect,” “believe,” “plan,” “will,” “would,” “should,” “could” and similar expressions are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Rule 175 promulgated thereunder, and Section 21E of the Securities Exchange Act of 1934, as amended, and Rule 3b-6 promulgated thereunder.  These forward-looking statements are subject to risks and uncertain­ties that may cause actual results to differ materially.  Factors that might cause such a difference include, but are not limited to: (1) competitive pressures among financial institutions or from non-financial 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 in the conditions 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; 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”), including those risk factors included in the disclosure under the heading “ITEM 1A. RISK FACTORS” of Peoples’ Annual Report on Form 10-K for the fiscal year ended December 31, 2005.  Peoples undertakes no obligation to update these forward-looking statements to reflect events or circumstances after the date of this news release or to reflect the occurrence of unanticipated events, except as required by applicable 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 BANK COMPLETES SALE OF BANKING OFFICE IN SOUTH SHORE, KENTUCKY _______________________________________________

October 2 , 2006

Contact: Mark F Bradley
President & CEO
(740) 373-3155

 

MARIETTA, Ohio – Peoples Bancorp Inc. (Nasdaq: PEBO) announced today that its banking subsidiary, Peoples Bank, National Association (“Peoples Bank”) has completed the sale of its South Shore, Kentucky banking office to American Savings Bank, fsb, the principal subsidiary of ASB Financial Corp. headquartered in Portsmouth, Ohio. 

First announced in April 2006, Peoples Bank sold the full-service office effective at the close of business on September 29, 2006.  The South Shore office has approximately $5 million of deposits and $700,000 of loans.

Peoples Bank continues to operate full-service offices in Ashland, Russell, Greenup, Summit, and Grayson, Kentucky.

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 48 locations and 35 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 Global Select Market.  Peoples Bancorp Inc. is also 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. APPOINTS NEW DIRECTOR _______________________________________________

September 15 , 2006

Contact: Mark F Bradley
President & CEO
(740) 373-3155

 

MARIETTA, Ohio - Peoples Bancorp Inc. (Nasdaq: PEBO) announced the recent election of David Mead as a director of the company.  The Peoples Bancorp Board of Directors unanimously approved Mead’s appointment at the company’s September 14th board meeting.

"David is a welcome addition to the Peoples Bancorp board,” said Mark F. Bradley, President and CEO of Peoples Bancorp.  “We are fortunate to be able to add to our directorship a person with strong financial background and financial services experience.”

Mead’s appointment increases the number of Peoples Bancorp directors to 12.  Since June 2005, he has also served as a director of Peoples Bank, the national bank subsidiary of Peoples Bancorp Inc.

Mead joins Peoples Bancorp’s board with 30 years of experience in accounting and finance.  His current position is Vice President of Business Affairs at Otterbein College in Westerville, Ohio.  Previously Mead was an Associate Professor of Management and Finance at Marietta (Ohio) College.  He has served for several years as Chief Financial Officer for two Ohio-based bank holding companies.  Prior thereto, he worked in various senior management capacities in other banks, including senior vice president of planning and analysis, and controller.

Mead is a Certified Public Accountant and a member of 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.

Mead is a graduate of Otterbein College with a degree in Business Administration, and resides with his family in central Ohio.  He received an MBA from Xavier University (Ohio).

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 35 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 Global Select Market. Peoples Bancorp Inc. is also 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 THIRD QUARTER DIVIDEND _______________________________________________

August 10, 2006

Contact: Mark F Bradley
President & CEO
(740) 373-3155

 

MARIETTA, Ohio - The Board of Directors of Peoples Bancorp Inc. (NASDAQ: PEBO) today declared a cash dividend of $0.21 per share payable on October 2, 2006, to shareholders of record at September 15, 2006.

“Peoples Bancorp has a 40-year history of dividend growth for our shareholders,” said Mark F. Bradley, President and Chief Executive Officer. 
“The increased dividends through the third quarter of 2006 reflect our commitment to enhance shareholder return through a greater emphasis on dividends.”

The third quarter dividend reflects a payout of approximately $2.2 million based on 10.6 million shares outstanding at August 10, and reflects a 5% increase over the $0.20 per share dividend paid in the third quarter of 2005. Dividends per share of $0.62 for the first three quarters of 2006 also represent a 5% increase over the $0.59 per share paid for the first three quarters of 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 35 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 Global Select Market under the symbol “PEBO”, and Peoples is a member of the Russell 3000 index of US publicly traded companies.  Learn more about Peoples at www.peoplesbancorp.com. 

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PEOPLES BANCORP INC. CHIEF FINANCIAL OFFICER RETIRES
_______________________________________________

August 1, 2006

Contact: Mark F Bradley
President & CEO
(740) 373-3155


MARIETTA, Ohio -Peoples Bancorp Inc. (Nasdaq: PEBO) announced that effective August 1, 2006, John W. “Jack” Conlon retired as Chief Financial Officer and Treasurer of Peoples Bancorp Inc. (“Peoples Bancorp”) and its banking subsidiary Peoples Bank, National Association (“Peoples Bank”).

“On behalf of our Board of Directors and all Peoples Bancorp associates, I thank Jack for his accomplishments and contributions, and we all wish him the best in retirement,” said Mark F. Bradley, President and Chief Executive Officer of Peoples Bancorp and Peoples Bank. 

Conlon, 61, joined Peoples Bank in 1982 and served in various finance capacities during his career.  In 1991, he was named Chief Financial Officer and became Treasurer in 1999.  In Conlon’s 24 years with Peoples Bancorp, he oversaw 20 acquisitions and helped grow the company from $192 million in assets to $1.9 billion at June 30, 2006.

“Jack served with passion and an outstanding commitment to enhancing shareholder value,” said Bradley. “We are also fortunate that his successor had the opportunity to work alongside him to ensure a smooth leadership transition.”

As part of a succession plan first announced in July 2005, Donald J. Landers has been named to Chief Financial Officer and Treasurer of Peoples Bancorp and Peoples Bank, an Executive Vice President position, effective August 1, 2006.  Landers, 47, had served Peoples Bancorp most recently as Senior Vice President, Director of Finance and Chief Accounting Officer.  He joined Peoples Bancorp in 2003 as Controller.  Landers, a CPA, has over 15 years experience in the financial services industry.

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 35 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 Global Select Market.  Peoples Bancorp is also 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. REPORTS A 13% INCREASE IN SECOND QUARTER EARNINGS PER SHARE
_______________________________________________

July 19 , 2006

Contact: John W Conlon
Chief Financial Officer
(740) 373-3155


MARIETTA, Ohio - Peoples Bancorp Inc. (“Peoples”) (NASDAQ: PEBO) today reported diluted earnings per share of $0.52 for the second quarter of 2006 on net income of $5.5 million.  This compares to diluted earnings per share of $0.46 and net income of $4.9 million a year ago, representing a 13% increase.  For the second quarter of 2006, Peoples achieved a return on average equity of 11.88% and return on average assets of 1.18%, versus 11.08% and 1.08%, respectively, a year ago.
 
Peoples’ higher second quarter earnings were due to lower operating expenses combined with non-interest income growth.  Second quarter 2005 results also reflect pension settlement charges of $578,000 ($421,000 after-tax or $0.04 per diluted share) because lump sum payments to participants during the quarter exceeded the allowable threshold under accounting principles generally accepted in the United States.  Comparatively, no settlement charges were incurred in 2006’s second quarter.

“We are very pleased to report continued earnings growth in the second quarter, despite challenging operating conditions,” commented Mark F. Bradley, President and CEO.  “The flat yield curve makes it difficult to expand net interest margin and emphasizes the importance of diversified revenue sources and cost containment.  In addition, loan and deposit growth were strong in the second quarter.”

For the six months ended June 30, 2006, Peoples’ net income grew 20% to $11.5 million, compared to $9.6 million in the first half of 2005, while diluted earnings per share were $1.07 and $0.91, respectively, an 18% increase.  As a result of the higher net income, return on average equity and return on average assets improved to 12.45% and 1.24%, respectively, from 10.97% and 1.07%, respectively, for the same period a year ago.  Increased net interest income and non-interest revenue were key drivers of the year-to-date improvement.
Non-interest income, excluding gains and losses on security and asset transactions, totaled $7.6 million for the second quarter of 2006, up 5% from 2005’s second quarter, while on a year-to-date basis, non-interest income increased 9%, totaling $15.7 million versus $14.3 million a year ago.  Higher insurance revenues and deposit account service charges accounted for most of the growth.

Insurance and investment revenues totaled $2.5 million for the second quarter of 2006, versus $2.3 million for 2005’s second quarter, due to increased sales of property and casualty insurance.  For the six months ended June 30, 2006, insurance and investment revenues were up 19%, largely attributable to the higher annual performance commission income received in the first quarter of 2006.  Deposit account service charges grew 5% in the second quarter of 2006 and 7% on a year-to-date basis from higher overdraft and non-sufficient funds fees. 

Non-interest expense totaled $12.6 million in the second quarter of 2006 compared to $13.4 million in the second quarter of 2005, due to lower salaries and benefit costs, occupancy and equipment expense and intangible amortization.  Second quarter 2006 salaries and benefits were $6.4 million, down 11% from $7.2 million a year ago, with the non-recurrence of pension settlement charges in the second quarter of 2005 accounting for much of this decline.  Lower depreciation expense from aged assets and decreased maintenance costs accounted for the drop in occupancy and equipment costs for the second quarter.  Professional fees for the three months ended June 30, 2006, were up 21% from a year ago, primarily attributable to ongoing regulatory compliance costs.  On a year-to-date basis, non-interest expense was down $0.6 million, or 2%, compared to a year ago, the result of declines in salaries and benefit costs, occupancy and equipment expense and intangible amortization.

“We are pleased with our improved operating efficiency, although the extra pension costs last year were a significant contributor to lower expense,” stated Bradley.  “Good production in our fee-based businesses, including our insurance agency, has helped boost non-interest income levels.”

Net interest income totaled $13.3 million in the second quarter of 2006, up from $12.9 million in the second quarter of 2005, due to earning asset growth from strong loan originations exceeding the increase in interest-bearing liabilities.  However, second quarter 2006 net interest income was negatively impacted by $4 million of commercial loans from a single lending relationship being placed on nonaccrual status, resulting in the reversal of accrued interest totaling $149,000 in the second quarter of 2006.  In addition, the current slope of the yield curve and the repricing of maturing liabilities at higher rates and aggressive loan and deposit pricing continue to challenge net interest income and accounted for the 1% decline from the first quarter of 2006.  These factors also caused Peoples’ net interest margin to drop to 3.29% for the quarter ended June 30, 2006, from 3.40% for the first quarter of 2006 and 3.32% for the second quarter of 2005.  Through six months of 2006, net interest income totaled $26.8 million and net interest margin was 3.34%, versus $25.6 million and 3.29% for the same period a year ago.

“In light of the ongoing interest rate pressures, net interest income and margin trends were in line with our expectations for the second quarter,” said Jack Conlon, Chief Financial Officer.  “Changing the mix of earning assets by funding loan growth with investment portfolio cash flows while working to reduce the amount of wholesale funding remains a major part of our interest rate management strategy to improve net interest income and margin.  However, we expect the current interest rate environment to limit the benefit from these changes in the near term.”

Portfolio loans grew $35.2 million, or 12% annualized, during the second quarter, to $1.11 billion at June 30, 2006.  Much of this increase was the result of commercial loan originations, while consumer loan balances (primarily indirect loans), excluding overdrafts, grew $4.0 million, representing the fifth consecutive quarter of consumer loan growth.  Since year-end 2005, total portfolio loans have increased $42.3 million, from $1.07 billion.

“Strong loan growth occurred in the second quarter due to lending opportunities in our more dynamic markets and lower than expected payoffs,” said Bradley.  “In addition, our mortgage banking operations originated and sold several loans, causing our servicing portfolio to grow to over $154 million at June 30.”

At June 30, 2006, nonperforming loans totaled $10.4 million, or 0.93% of total loans, up from $6.0 million, or 0.56% at March 31, 2006 and $6.5 million, or 0.61% at year-end 2005, due primarily to the previously mentioned $4 million of commercial loans being placed on nonaccrual status.  As a result, nonperforming assets comprised 0.56%, 0.33% and 0.37% of total assets for the same periods, respectively.  At June 30, 2006, the allowance for loan losses was $15.3 million, or 147.6% of nonperforming loans, versus 242.7% and 225.2% at March 31, 2006 and December 31, 2005, respectively.  In the second quarter of 2006, the provision for loan losses was $573,000 compared to $268,000 last quarter and $40,000 in the second quarter of 2005, with provisions relating to overdrafts accounting for $250,000, $56,000 and $182,000, respectively.  Recoveries of previously charged-off loans exceeded charge-offs in the second quarter of 2006, resulting in net recoveries of $86,000 compared to net charge-offs of $514,000 a year ago and $316,000 in the first quarter of 2006.

“While nonperforming loans increased, much of the increase was related to a single impaired commercial relationship identified in the second quarter,” added Bradley.  “This credit deterioration has been appropriately considered in determining the adequacy of the allowance for loan losses, and management anticipates no loss on the loans.  Aside from this relationship, Peoples’ overall loan quality remained good in the second quarter, as reflected by recoveries exceeding charge-offs.” 

At June 30, 2006, total deposits were $1.15 billion compared to $1.09 billion at year-end 2005, a 6% increase.  Interest-bearing deposits grew $55.6 million to $982.1 million, due mostly to higher certificates of deposit balances resulting from certain promotional offerings and an increase in brokered deposits.  Peoples also introduced a new money market product in mid-second quarter, which has attracted over $9 million of new deposit relationships.  As a result of the deposit growth campaign initiated in late 2005 to attract core deposits, non-interest-bearing deposits were up $7.2 million at June 30, 2006, from $162.7 million at year-end 2005. 

“Overall, we are pleased with second quarter results,” summarized Bradley.  “Despite one credit relationship being placed on nonaccrual, we believe any significant issues are isolated and overall loan quality remains good.  Also, operating efficiency improved, despite increased margin pressures.  We look forward to building on second quarter success in the remainder of 2006.” 
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 35 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 Global Select Market under the symbol “PEBO”, and Peoples is a member of the Russell 3000 index of US publicly traded companies.  Learn more about Peoples at www.peoplesbancorp.com. 

Conference Call to Discuss Earnings:
Peoples will conduct a facilitated conference call to discuss second quarter of 2006 results of operations today at 11:00 a.m. eastern daylight time, with members of Peoples’ executive management participating.  Analysts, media and individual investors are invited to participate in the conference call by calling (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; 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”), including those risk factors included in the disclosure under the heading “ITEM 1A. RISK FACTORS” of Peoples’ Annual Report on Form 10-K for the fiscal year ended December 31, 2005.  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 ITS INCLUSION IN THE NEW NASDAQ GLOBAL SELECT MARKET
- The Market with the Highest Initial Listing Standards in the World -_______________________________________________

June 29 , 2006

Contact: Mark F. Bradley
President & Chief Executive Officer
(740) 373-3155

 

MARIETTA, Ohio - Peoples Bancorp Inc. (“Peoples”) (NASDAQ: PEBO) announced today that it is included in the new NASDAQ Global Select Market.  The NASDAQ Global Select Market has the highest initial listing standards of any exchange in the world based on financial and liquidity requirements. Prior to the change, the company was listed on the NASDAQ National Market.

Beginning July 3, 2006 NASDAQ-listed companies will be classified under three listing tiers — NASDAQ Global Select Market, NASDAQ Global Market, and NASDAQ Capital Market. NASDAQ also plans to launch indexes based on these new tiers.

Peoples Bancorp Inc. is an example of an industry leader that has achieved superior listing standards, which clearly defines the essence of the NASDAQ Global Select Market," said NASDAQ Corporate Client Group Executive Vice President, Bruce Aust. "NASDAQ is focused on leading a race to the top in terms of listing qualifications.  In recognizing these companies, we are highlighting their achievement in meeting the requirements to be included in the market with the highest listing standards in the world,” added Mr. Aust.

NASDAQ announced the new three tier listing classification in February 2006. All three market tiers will maintain rigorous listing and corporate governance standards. For additional information about the NASDAQ Global Select Market, please go to: www.nasdaq.com/GlobalSelect.

NASDAQ is the largest U.S. electronic stock market. With approximately 3,200 companies, it lists more companies and, on average, trades more shares per day than any other U.S. market. It is home to companies that are leaders across all areas of business including technology, retail, communications, financial services, transportation, media and biotechnology. NASDAQ is the primary market for trading NASDAQ-listed stocks. For more information about NASDAQ, visit www.nasdaq.com or the NASDAQ Newsroom at http://www.nasdaq.com/newsroom/.

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 35 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 will be traded on the NASDAQ National Market under the symbol “PEBO” until June 30, 2006 and then will trade on the NASDAQ Global Select Market starting July 3, 2006. Peoples is also a member of the Russell 3000 index of US publicly traded companies.  Learn more about Peoples at www.peoplesbancorp.com. 

END OF RELEASE

 

PEOPLES BANK TO ACQUIRE BANKING OFFICE IN CARROLL, OHIO AND SELL OFFICE IN CHESTERHILL, OHIO

_______________________________________________

Agreement signed with First National Bank of McConnelsville to exchange banking offices and deposits

May 31, 2006

Contact: Mark F. Bradley
President & Chief Executive Officer
(740) 373-3155


MARIETTA, Ohio –

Peoples Bank, National Association ("Peoples Bank"), a wholly-owned subsidiary of Peoples Bancorp Inc. (NASDAQ: PEBO), and First National Bank of McConnelsville ("First National Bank"), a wholly-owned subsidiary of FNB Shares, Inc., announced today that the companies have signed a definitive agreement that provides for Peoples Bank to acquire First National Bank's Carroll, Ohio office and associated $6 million of deposits, and First National Bank will acquire Peoples Bank's Chesterhill, Ohio office and associated $5 million of deposits.

"This exchange of branches is good for the customers and shareholders of both companies," said Mark F. Bradley, Peoples Bancorp Inc.'s President and Chief Executive Officer. "Peoples Bank's newly opened office at the intersection of Ety Road and West Fair Avenue in Lancaster, combined with the nearby Carroll office, will allow us to better serve the growing area between Lancaster and Columbus."

The community of Carroll is located 20 miles southeast of Columbus, Ohio, in Fairfield County, where Peoples Bank operates three full-service offices. Chesterhill is located in Morgan County (Ohio).

"We look forward to growing our presence in Morgan County," said John O. Keirns, President and Chief Executive Officer of First National Bank. "Our roots in Morgan County date back to 1863, and the Chesterhill office gives us the opportunity to expand our product offering to the southern parts of the county."

Under terms of the agreement, Peoples Bank and First National Bank will exchange deposits and certain fixed assets of the banking offices with a settlement for the net book value of the fixed assets. The deal also calls for a 6% premium to be paid on any difference in the amount of deposits acquired. Loans will be retained at the originating financial institution. The transaction, which is subject to regulatory approval, is expected to be completed during the fourth quarter of 2006.

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. Learn more about Peoples Bancorp Inc. at www.peoplesbancorp.com or about First National Bank of McConnelsville at www.first-national.com.

Safe Harbor Statement:

This press release may contain certain forward-looking statements with respect to Peoples Bancorp Inc.'s ("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 Sections 27A of the Securities Act of 1933, as amended, and Rule 175 promulgated thereunder, and 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 impact interest margins; (3) prepayment speeds, loan sale volumes, charge-offs and loan loss provisions; (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 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 undertakes no 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 BANK OPENS NEW BANKING OFFICE IN LANCASTER

_______________________________________________

May 17, 2006

Contact: Mark F. Bradley
President & Chief Executive Officer
(740) 373-3155 		Matt Lytle
Office Manager
(740) 687-2920


LANCASTER, Ohio –Peoples Bank, a subsidiary of Peoples Bancorp Inc. (Nasdaq: PEBO), announced the opening of a new full-service banking office in Lancaster at 2211 West Fair Avenue (intersection of Ety Road and West Fair Avenue). The office opened on May 15 and features a drive-up ATM, motor banking, and extended hours of service.

“We are excited to expand in Lancaster,” said Mark Bradley, President and Chief Executive Officer for Peoples Bank.  “Through our new office and existing locations, we can now offer added convenience for our growing client base in Fairfield County.”

Peoples Bank’s West Fair Avenue location offers expanded hours from 7:00 am to 7:00 pm, Monday - Friday and 8:00 am to 1:00 pm on Saturday.  With the West Fair Avenue office, Peoples Bank now has three full service offices in Fairfield County, with locations at 117 West Wheeling in downtown Lancaster and 120 North Main Street in Baltimore.  Peoples Bank also operates loan production offices in Westerville and Delaware.

 “One of our Core Values is ‘Clients as a Focus’,” said Matt Lytle, Office Manager of Peoples Bank’s Fairfield County locations. “We deliver financial solutions through our universal product offering and look forward to serving the Lancaster community in a greater capacity.”

Peoples Bank offers a comprehensive selection of financial products at this location including commercial and consumer deposits and loans; internet banking; debit cards; investment services; financial planning; and life, health, property and casualty insurance.

Clients interested in more information concerning Peoples’ products and services may contact office manager Matt Lytle at (740) 687-2920.

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 35 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 at www.peoplesbancorp.com.

END OF RELEASE

 

PEOPLES BANCORP INC. INCREASES SECOND QUARTER DIVIDEND

_______________________________________________

May 11, 2006
Contact: Mark F Bradley, President & Chief Executive Officer
(740) 373-3155

MARIETTA, Ohio – The Board of Directors of Peoples Bancorp Inc. (NASDAQ: PEBO) today declared a cash dividend of $0.21 per share payable on July 3, 2006, to shareholders of record at June 15, 2006.

"Peoples Bancorp has a long history of dividend growth," said Mark F. Bradley, President and Chief Executive Officer. "The higher dividend in the second quarter reflects our commitment to enhance shareholder return through a greater emphasis on dividends."

The second quarter dividend reflects a payout of approximately $2.2 million based on 10.6 million shares outstanding at May 10, and reflects a 10.5% increase over the $0.19 per share dividend paid in the second quarter of 2005 and a 5.0% increase over the $0.20 per share paid in the first quarter of 2006.

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 48 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 BANK TO SELL BANKING OFFICE IN SOUTH SHORE, KENTUCKY

_______________________________________________

April 20, 2006
Contact: Mark F Bradley, President & Chief Executive Officer
(740) 373-3155

MARIETTA, Ohio – Peoples Bank, National Association, a wholly-owned subsidiary of Peoples Bancorp Inc. (NASDAQ: PEBO), announced today that it has agreed to sell its South Shore, Kentucky banking office to American Savings Bank, fsb. American Savings Bank, fsb, is the principal subsidiary of ASB Financial Corp. headquartered in Portsmouth, Ohio.

"This action is consistent with our strategic plan to optimize our branch network for better growth opportunities,” said Mark F. Bradley, Peoples Bancorp’s President and Chief Executive Officer. “We look forward to continuing to serve our customers in Boyd, Greenup and Carter counties through our other Kentucky offices.” Peoples Bank also has full-service offices in Ashland, Russell, Greenup, Summit, and Grayson, Kentucky.

Under terms of the purchase and assumption agreement, American Savings Bank, fsb has agreed to pay a 5% premium, or approximately $300,000 in cash, for South Shore’s $6 million in deposits. In addition, American Savings Bank, fsb will acquire fixed assets at book value and $1 million of loans. The transaction, which is subject to regulatory approval, is expected to be completed on or before September 30, 2006.

"The acquisition of the South Shore branch will only help to serve our current customers better and is a natural progression of expansion for American,” said Robert M. Smith, President and CEO of American Savings Bank, fsb. “The South Shore market is very similar to the needs of the Portsmouth, Waverly and Wheelersburg markets. Our experiences in southern Ohio will help to make our progression into Northern Kentucky both seamless and successful.”

ASB Financial Corp. is traded under the symbol ASBN on www.pinksheets.com and more information can be found on American Savings Bank, fsb at www.asbportsmouth.com.

Peoples Bancorp Inc. (“Peoples”), 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 48 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

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 Sections 27A of the Securities Act of 1933, as amended, and Rule 175 promulgated thereunder, and 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 impact interest margins; (3) prepayment speeds, loan sale volumes, charge-offs and loan loss provisions; (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 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 undertakes no 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.

 

PEOPLES BANCORP INC. REPORTS 27% INCREASE IN FIRST QUARTER EARNINGS PER SHARE

_______________________________________________

April 19, 2006
Contact: John W Conlon, Chief Financial Officer
(740) 373-3155

MARIETTA, Ohio - Peoples Bancorp Inc. (“Peoples”) (NASDAQ: PEBO) announced today earnings per diluted share of $0.56 for the first quarter of 2006, up 27% over $0.44 a year ago. Net income was $5,931,000 for the quarter ended March 31, 2006, a 26% increase compared to $4,692,000 earned in 2005’s first quarter. Return on average equity improved to 13.02% for the first quarter of 2006, from 10.85% a year ago, and return on average assets was 1.30% compared to 1.05% for the same periods, respectively.

“We are very pleased with our strong start to 2006 as reflected in improved first quarter results,” commented Mark F. Bradley, President and CEO. “Key drivers of our earnings growth were higher net interest income levels, increased insurance and investment revenues and a lower provision for loan losses. In addition, we experienced modest loan growth, despite some expected loan payoffs.”

Net interest income improved 6% to $13,503,000 in the first quarter of 2006, from $12,712,000 a year ago, as average earning assets and related interest income increased more than average interest-bearing liabilities and related funding costs. In the first quarter of 2006, average earning assets were up $38 million from the same period a year ago, as a direct result of increased average loan balances, while average interest-bearing liabilities grew $21 million. Net interest margin was 3.40% for the quarter ended March 31, 2006, compared to 3.39% for the fourth quarter of 2005 and 3.27% for the first quarter of 2005.

"First quarter net interest income and margin exceeded expectations,” said Jack Conlon, Chief Financial Officer. “The Federal Reserve’s efforts to increase the general level of market interest rates have resulted in improvements in asset yields that exceeded the increase in funding costs when compared to the same quarter of 2005. However, we expect the repricing of maturing interest-bearing liabilities, the current flat yield curve, and competitive loan and deposit pricing to pressure our net interest margin for the remainder of 2006.”

The provision for loan losses was $268,000 for the first quarter of 2006, down sharply from $941,000 in the first quarter of 2005. The provision is based on management’s in depth quarterly analysis of the loan portfolio and historical loss experience and is directionally consistent with Peoples’ loan quality and improving loss experience. The first quarter of 2005 included a specific provision of $500,000 for a group of loans that management determined to be impaired. First quarter 2006 net charge-offs decreased 37% to $316,000 from $499,000 a year ago and decreased 43% from the $550,000 experienced in the fourth quarter of 2005, attributable to a reduced amount of loans deemed uncollectible. The largest portion of first quarter 2006 net charge-offs related to commercial loans, while real estate loans comprised over half of the first quarter of 2005 net charge-offs. The allowance for loan losses was $14.7 million, or 242.7% of nonperforming loans, at March 31, 2006, compared to 225.2% at year-end and 208.1% at March 31, 2005.

Non-interest income, excluding gains and losses on security and asset transactions, totaled $8,096,000 for first quarter of 2006, up 14% compared to a year ago due mostly to higher insurance revenues. In the first quarter of 2006, Peoples’ insurance and investment commissions totaled $3,375,000 versus $2,654,000 a year ago, a 27% increase, with $556,000 of additional performance based commission income accounting for nearly all of this growth. Deposit account service charges remain a significant source of non-interest income, totaling $2,461,000 and $2,274,000 for the first quarters of 2006 and 2005, respectively.

"For several quarters, we have worked to grow non-traditional revenues and reduce our reliance on margin-based revenue,” stated Bradley. “Performance based commission income, which is typically earned in the first quarter of the year, accounted for much of the first quarter increase in non-interest income. We are very pleased with the increased insurance income, which was the result of good volume and loss performance at our insurance agency and other strategic actions.”

In the first quarter of 2006, total non-interest expense was up 3% to $13.1 million, compared to the first quarter of 2005. Salaries and benefits, Peoples’ largest operating expense, were $6.9 million for the first quarter of 2006, up from $6.7 million a year ago, the result of annual salary adjustments and higher incentive costs based on Peoples’ performance. Peoples also recorded stock option expense of $124,000 in the first quarter of 2006 under the new stock-based compensation accounting rules adopted on January 1, 2006. Approximately $97,000 of this expense was for options granted to certain employees in 2006 deemed vested for expense recognition due to the implicit service period under Peoples’ stock option plans. Marketing expense was up 25% in the first quarter of 2006, largely attributable to costs associated with Peoples’ deposit growth campaign implemented in late 2005. Compared to the fourth quarter of 2005, non-interest expense grew 4%, as the expected increase in salaries and benefits was offset by decreases in several major expense areas, including occupancy and equipment costs, state franchise taxes and intangible amortization expense.

“We are comfortable with the increase in non-interest expense in the first quarter, as well as the improved efficiency ratio and better than expected financial results,” stated Bradley. “We remain committed to controlling expenses to help mitigate the impact of interest rate pressures on our earnings.”

Peoples’ effective tax rate was 28.4% for the first quarter of 2006 versus 26.6% a year ago. The increase in the effective rate was due to higher pre-tax income without a comparable increase in tax-exempt income and reflects management’s current estimate of the approximate annual effective rate for 2006.

At March 31, 2006, portfolio loans totaled $1.08 billion, up $7.2 million from the prior year-end balance. Much of this increase was the result of commercial loan originations, while consumer loan balances (primarily indirect loans), excluding overdrafts, grew $1.9 million, representing the fourth consecutive quarter of consumer loan growth. As part of its mortgage banking activities, Peoples was servicing $147.4 million of fixed-rate real estate loans at March 31, 2006, that were sold to the secondary market, compared to $144.3 million at December 31, 2005.

"Continued demand for loans in key markets and lower than expected payoffs were key factors in loan growth during the quarter,” commented Bradley. “Lending opportunities exist in our markets, and our lenders are focused on originating quality loans.”

Nonperforming loans were $6.0 million, or 0.56% of total loans, at March 31, 2006, down from $6.5 million, or 0.61%, at December 31, 2005. Total nonperforming assets declined $760,000 during the first quarter of 2006 to $6.1 million, or 0.33% of total assets, compared to $6.8 million, or 0.37% at the end of 2005. Due largely to the decline in nonperforming loans, the allowance for loan losses grew to 242.7% of nonperforming loans at quarter-end, compared to 225.2% at December 31, 2005.

At March 31, 2006, total deposits were $1.14 billion, up $50.3 million from $1.09 billion at year-end 2005. Interest-bearing deposits grew $46.3 million to $972.8 million, due to higher certificates of deposit balances resulting from certain promotional offerings and an increase in brokered deposits. As a result of the deposit growth campaign initiated in late 2005, non-interest-bearing deposits grew $4.1 million in the first quarter of 2006, totaling $166.8 million at March 31, 2006.

"Overall, our first quarter results provide the foundation for solid earnings momentum,” summarized Bradley. “We continue to build on recent success to create long-term shareholder value, as we work through difficult operating conditions that include industry-wide interest rate pressures and intense competition for loans and deposits.”

Peoples Bancorp Inc., a diversified financial products and services company with $1.9 bill ion in assets, makes available a complete line of banking, investment, insurance, and trust solutions through 48 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 first quarter of 2006 results of operations today at 11:00 a.m. eastern daylight time, with members of Peoples’ executive management participating. Analysts, media and individual investors are invited to participate in the conference call by calling (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 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”), including those risk factors included in the disclosure under the heading “ITEM 1A. RISK FACTORS” of Peoples’ Annual Report on Form 10-K for the fiscal year ended December 31, 2005. 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. HOLDS
ANNUAL MEETING OF SHAREHOLDERS

_______________________________________________

April 14, 2006
Contact: Mark F Bradley, President and Chief Executive Officer
(740) 373-3155

MARIETTA, Ohio – The Annual Meeting of the Shareholders of Peoples Bancorp Inc. (“Peoples”) (Nasdaq: PEBO) was held April 13, 2006, in Marietta, Ohio.

At the meeting, shareholders re-elected Board members Carl L. Baker, Jr., George W. Broughton, Wilford D. Dimit, and Richard Ferguson to serve as directors of Peoples for three-year terms expiring in 2009. In addition, shareholders followed the recommendation of the Board in approving the Peoples Bancorp Inc. 2006 Equity Plan and adopting amendments to various sections of Peoples’ Code of Regulations.

President and Chief Executive Officer Mark F. Bradley reviewed Peoples’ 2005 results of operations and financial performance. Bradley commented during the meeting, “We focus on long-term growth of shareholder value. Consistent with this philosophy, on a 5, 10, and 20-year basis, we have delivered double-digit growth in value to our shareholders.”

Peoples provided information on its amended Dividend Reinvestment and Stock Purchase Plan. Under this plan, participants may purchase additional common shares of Peoples Bancorp stock by making optional cash investments. Information about the plan, including a copy of the prospectus describing the Plan, may be obtained from Shareowner Services 161 N. Concord Exchange South St. Paul, MN 55075 or by calling (800) 468-9716.

Peoples also announced it will release first quarter 2006 earnings before the market opens on April 19, 2006. Peoples’ executive management will conduct a facilitated conference call to discuss first quarter results of operations at 11:00 a.m. Eastern Daylight Time on the same date. 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 can be accessed via the Investor Relations section on Peoples’ website, www.peoplesbancorp.com, where a replay will also be available.

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 48 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 TO PRESENT AT MIDWEST 2006 SUPER-COMMUNITY BANK INVESTOR CONFERENCE - FEBRUARY 28 & MARCH 1
_______________________________________________

February 22, 2006
(740) 373-3155

February 21, 2006, Chicago, IL -- The Midwest Super-Community Bank Conference will take place in Chicago on February 28th and March 1 st. The conference will feature thirty community banks presenting to an audience of institutional investors, high net-worth individuals, and analysts from leading investment banks. The conference provides small and mid-cap banks with an opportunity to reach a wide audience of investors specifically interested in this sector of the banking industry.

The conference will be webcast and may be accessed at http://www.super-communitybanking.com/midwest.htm, or at the individual websites of the presenting banks. To listen to the live webcast, please go to the website at least fifteen minutes early to download and install any necessary software. Presentations will be archived up to thirty days following the event. Presentations are scheduled [Eastern Time] to take place as follows:

Tuesday, February 28th

Time (ET) Bank Ticker Website

9:15 am Integra Bank Corporation IBNK http://www.integrabank.com

9:15 Wintrust Financial Corporation WTFC http://www.wintrust.com

9:55 First Place Financial Corp. FPFC http://www.firstplacebank.com.

9:55 Independent Bank Corporation IBCP http://www.ibcp.com

10:35 First State Bancorporation FSNM http://www.fsbnm.com

10:35 MB Financial, Inc. MBFI http://www.mbfinancial.com

11:30 Bank of the Ozarks, Inc. OZRK http://www.bankozarks.com

11:30 Old National Bancorp ONB http://www.oldnational.com

12:10 pm Macatawa Bank Corporation MCBC http://www.macatawabank.com

12:10 FirstMerit Corporation FMER http://www.firstmerit.com

12:50 Rurban Financial Corp. RBNF http://www.rurbanfinancial.net

12:50 Capitol Bancorp Limited CBC http://www.capitolbancorp.com

3:00 Peoples Bancorp Inc. PEBO http://www.peoplesbancorp.com

3:00 AMCORE Financial, Inc. AMFI http://www.amcore.com

3:40 Tower Financial Corporation TOFC http://www.tofc.net

3:40 MAF Bancorp, Inc. MAFB http://www.mafbancorp.com

4:35 Mercantile Bank Corporation MBWM http://www.mercbank.com

4:35 Associated Banc-Corp ASBC http://www.associatedbank.com

5:15 Community Central Bank Corp. CCBD http://www.communitycentralbank.com

5:15 Republic Bancorp Inc. RBNC http://www.republicbancorp.com

5:35 Community Shores Bank Corp. CSHB http://www.communityshores.com

5:55 Oak Hill Financial, Inc. OAKF http://www.oakf.com

5:55 F.N.B. Corporation FNB http://www.fnbcorporation.com

Wednesday, March 1st

Time (ET) Bank Ticker Website

10:00 am First Defiance Financial Corp. FDEF https://www.fdef.com

10:00 Taylor Capital Group, Inc. TAYC http://www.taylorcapitalgroup.com

10:40 Old Second Bancorp, Inc. OSBC http://www.o2bancorp.com

10:40 Sky Financial Group, Inc. SKYF http://www.skyfi.com

11:35 Midwest Banc Holdings, Inc. MBHI http://www.midwestbanc.com

11:35 Citizens Banking Corporation CBCF http://www.citizensonline.com

12:15 pm Enterprise Financial Services Corp EFSC http://www.enterprisebank.com

Website: www.super-communitybanking.com

END OF RELEASE

PEOPLES BANCORP INC. DECLARES FIRST QUARTER DIVIDEND
_______________________________________________

February 9, 2006
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 April 3, 2006, to shareholders of record at March 15, 2006.

The first quarter dividend reflects an increase of 5.3% over the $0.19 per share paid in the first quarter of 2005 and equal to the fourth quarter of 2005.

The first quarter dividend represents a payout of approximately $2.1 million based on 10.6 million shares outstanding at February 9, 2006.

“The Board's decision to continue the level of the quarterly cash dividend reflects our commitment to enhance shareholder return and is consistent with the greater emphasis on dividends,” said Mark F. Bradley, President and CEO.

The annualized 2006 dividend of $0.80 equates to a yield of 2.8% based on Peoples Bancorp’s closing stock price of $28.54 on February 8, 2006.

Peoples recently reported net income of $5.7 million or $0.53 per diluted share for the fourth quarter of 2005. Net income for the year ended December 31, 2005 was $20.5 million or $1.94 per diluted share.

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 BANK TO OPEN NEW FULL-SERVICE OFFICE IN LANCASTER, OHIO
 _______________________________________________

January 27, 2006
Contact: Mark F Bradley, President and Chief Executive Officer
(740) 373-3155

MARIETTA, Ohio - Peoples Bank, a subsidiary of Peoples Bancorp Inc. (Nasdaq: PEBO), will open a new full-service banking office in Lancaster, Ohio, which will increase Peoples Bank’s Fairfield County (Ohio) locations to three full-service offices.

Scheduled to open in May 2006, the new office will be located at the intersection of Ety Road and West Fair Avenue, and will feature a drive-up ATM and drive-through banking for added convenience.

“Expansion in Lancaster and central Ohio is one of our strategies,” said Mark F. Bradley, President and Chief Executive Officer of Peoples Bancorp Inc. “Lancaster and surrounding areas are economically vibrant, and our new office will be in the heart of continued expansion in and around Lancaster.”

The new office will focus on providing banking and related financial services to prospective and current clients in the Lancaster area. In addition to the new Ety Road office, Peoples Bank has full-service banking offices at 117 West Wheeling Street in Lancaster and 120 North Main Street in nearby Baltimore, Ohio. Peoples Bank also operates loan production offices in the central Ohio communities of Westerville and Delaware.

“We are proud to be part of the growth in Lancaster,” said Bradley. “Superior customer service is the foundation of our universal financial services offering, and we are pleased to soon be able to provide added convenience for our Lancaster customers.”

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 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 at www.peoplesbancorp.com.

END OF RELEASE

 

 

PEOPLES BANCORP INC.
REPORTS INCREASED EARNINGS IN 2005 _______________________________________________

Revises second quarter 2005 results to reflect pension settlement

January 24, 2006
Contact: John W Conlon, Chief Financial Officer
(740) 373-3155

MARIETTA, Ohio - Peoples Bancorp Inc. (“Peoples”) (NASDAQ: PEBO) announced today net income of $5,661,000, or $0.53 per diluted share, for the quarter ended December 31, 2005, compared to $2,718,000, or $0.26 per diluted share, reported in the fourth quarter of 2004, which included charges totaling $2,090,000 after-tax (or $0.20 per diluted share) primarily related to security losses. Return on equity (“ROE”) improved to 12.50% for the fourth quarter of 2005, from 11.68% last quarter and 6.21% for 2004’s fourth quarter. For the year ended December 31, 2005, net income totaled $20,499,000, or $1.94 per diluted share, versus $18,275,000, or $1.71 per diluted share, earned in 2004, representing ROE of 11.52% and 10.60%, respectively. Peoples also increased its dividends 8% to $0.78 in 2005, marking the 40th consecutive year of dividend increases.

In December, Peoples determined that the yearly amount of lump sum payments to participants from Peoples’ defined benefit pension plan during 2005 exceeded the allowable threshold of annual service cost plus interest and, accordingly, settlement charges of $578,000 ($421,000 after taxes, or $0.04 per diluted share) should have been reflected in the results for the second quarter of 2005. Although Peoples deems the impact of the settlement charge on its financial statements to be immaterial, it has revised second quarter results and reduced net income per share by $0.04.

“Despite the extra pension costs related to larger than normal lump sum benefit payments, we are pleased with overall results in 2005,” commented Mark F. Bradley, President and CEO. “In the fourth quarter, we achieved success in several areas, including loan growth, enhanced ROE, net interest margin improvement, and improved operating cost control.”

Net interest income improved 6% to $13,528,000 in the fourth quarter of 2005, from $12,734,000 a year ago, as average earning assets increased more than average interest-bearing liabilities. Compared to 2004’s fourth quarter, average earning assets were up $52 million to $1.65 billion in the fourth quarter of 2005, as a direct result of a $74 million increase in average loan balances. Average interest-bearing liabilities grew $48 million during the same period. Fourth quarter 2005 net interest margin was 3.39%, compared to 3.29% for the fourth quarter a year ago . Compared to the third quarter of 2005, net interest income was up 3% while net interest margin improved seven basis points. For the year ended December 31, 2005, net interest income was $52,306,000 and net interest margin was 3.32%, compared to $51,870,000 and 3.39%, respectively, in 2004.

“We are also pleased with the improvement in net interest income and margin in the fourth quarter,” said Jack Conlon, Chief Financial Officer. “The series of rate increases in 2005 have resulted in some asset yield improvement. However, the current slope of the yield curve and the maturity of certain interest-bearing liabilities that will result in higher funding costs on the replacement borrowings starting near the end of January 2006, along with competitive loan and deposit pricing, will suppress further improvements in net interest margin.”

In the fourth quarter of 2005, Peoples reported net gains of $349,000 on sales of securities and assets, $122,000 of expense related to accelerated vesting of stock options, and $100,000 of additional marketing expense from a contribution to Peoples Bancorp Foundation, Inc., an independent non-profit entity formed in 2004 to make charitable distributions to organizations in Peoples’ primary market areas.

Non-interest income, excluding gains and losses on security and asset transactions, totaled $7,014,000 for fourth quarter of 2005, compared to $7,049,000 for 2004’s fourth quarter. For the year ended December 31, 2005, non-interest income was $28,470,000 versus $25,367,000 in 2004, with higher insurance commissions accounting for nearly all of this annual increase.

Deposit account service charges were the largest source of Peoples’ non-interest revenue, totaling $2,522,000 in the fourth quarter and $9,801,000 for the year ended December 31, 2005, compared to $2,414,000 and $9,636,000 for the same periods in 2004. Fourth quarter 2005 insurance and investment commissions were $2,057,000 versus $2,153,000 a year ago, due primarily to lower life insurance and fixed annuity sales. For the year, insurance and investment commissions were $9,243,000 in 2005, up from $6,152,000 in 2004, with a full year of revenues from the agency acquisitions completed in mid-2004 accounting for this improvement. Electronic banking revenues, driven by ATM and debit card revenues, remained strong in the fourth quarter, increasing 11% from the prior year quarter, and grew 17% for the year, mainly due to higher debit card activity and additional cards issued.

In the fourth quarter of 2005, total non-interest expense was down 2% from last year’s fourth quarter, totaling $12.6 million versus $12.8 million. Salaries and benefits remain Peoples’ largest operating expense, totaling $6.1 million and $6.7 million for the fourth quarters of 2005 and 2004, respectively. Lower fourth quarter compensation expense occurred due to decreased medical insurance costs of $306,000 compared to fourth quarter 2004, lower sales commissions/incentives of $135,000, and decreased base salary costs of $79,000. The decreases were partially offset by the previously mentioned $122,000 of non-cash compensation expense in fourth quarter of 2005 related to accelerated stock option vesting, as reported on Form 8-K filed December 29, 2005.

Occupancy and equipment costs were up 15% in the fourth quarter of 2005 from the prior year quarter, largely attributable to higher utility, maintenance and lease costs. Peoples’ bankcard costs declined in 2005 even though ATM and debit card activity showed modest growth. The decrease was a direct result of a reduction in various transaction-based charges due to a new processing contract with the existing provider of Peoples’ ATM and debit card services. For the year ended December 31, 2005, total non-interest expense was up 9% to $51.3 million, with a full year’s impact of costs attributable to the insurance agencies acquired in mid-2004 driving much of this increase.

"Overall, we are pleased with operating cost control,” stated Bradley. “Despite incurring additional pension costs, we otherwise had a good fourth quarter and full year 2005, especially in areas such as medical insurance costs and total base salary costs.”

At December 31, 2005, portfolio loans totaled $1.07 billion, up 5% from the prior year-end balance of $1.02 billion, with $11.3 million of growth in the fourth quarter. Peoples experienced solid growth in commercial and commercial real estate loans throughout the year, while consumer loan balances, excluding overdrafts, increased in each of the final three quarters of 2005. As part of its mortgage-banking activities, Peoples was servicing $144.3 million of fixed-rate real estate loans at December 31, 2005, that were previously sold into the secondary market, compared to $106.4 million at December 31, 2004, a 36% increase.

Nonperforming loans were $6.5 million, or 0.61% of total loans, at December 31, 2005, up from $5.9 million, or 0.56%, at September 30, 2005, due to a modest increase in nonaccrual loans. Even with a modest increase in nonperforming loans, total nonperforming assets declined $1.3 million during the fourth quarter of 2005 to $6.8 million, or 0.37% of total assets, compared to $7.7 million, or 0.43% at the end of the third quarter of 2005. This improvement is primarily attributable to Peoples selling $2.0 million of other real estate owned during the quarter, generating a net gain of $46,000. Net charge-offs were $550,000 in the fourth quarter of 2005 compared to $577,000 a year ago and $505,000 in the third quarter of 2005. Commercial and real estate loans comprised the largest portion of fourth quarter 2005 net charge-offs, while net charge-offs relating to the Overdraft Privilege program comprised nearly half of fourth quarter 2004 net charge-offs. For the year, net charge-offs were down 12% in 2005 compared to 2004, due to higher recoveries.

The allowance for loan losses was $14.7 million, or 1.37% of total loans, at December 31, 2005, compared to $14.8 million, or 1.44% of total loans, at year-end 2004. As a percentage of nonperforming loans, the allowance for loan losses was 225.2% at year-end 2005, virtually unchanged compared to December 31, 2004. Fourth quarter provision for loan losses was $562,000 in 2005, compared to $531,000 a year ago. For the year ended December 31, 2005, provision for loan losses was down 20% to $2,028,000 versus $2,546,000 in 2004. The lower provision in 2005 was based on management’s quarterly evaluation and is directionally consistent with Peoples’ recent loss experience net of recoveries of previously charged-off loans.

“Loan quality continues to be strong,” commented Bradley. “Net charge-offs and loan delinquencies are reasonable. Fourth quarter and full year 2005 loan loss provision basically matched net charge-offs, and we expect that trend to continue into early 2006.”

At December 31, 2005, total deposits were $1.09 billion, up $19.9 million from $1.07 billion at year-end 2004. Interest-bearing deposits grew $10.1 million to $926.6 million, while non-interest-bearing deposits grew $9.8 million since December 31, 2004, totaling $162.7 million at December 31, 2005.

"It was a good quarter for us,” summarized Bradley. “We are pleased with our results and the manner in which we have managed the challenging interest rate environment. Our integrated financial services offering provides the opportunity to continue to build future shareholder value for our investors. ”

Peoples Bancorp Inc., a diversified financial products and services company with $1.9 bill ion 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 fourth quarter and 2005 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 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.
AUTHORIZES REPURCHASE OF COMMON SHARES
_______________________________________________

Four Board members nominated for re-election

January 17, 2006
Contact: Mark F Bradley, President and Chief Executive Officer
(740) 373-3155

MARIETTA, Ohio - At its regular meeting last week, t he Board of Directors of Peoples Bancorp Inc. (“Peoples”) (NASDAQ: PEBO) adopted a stock repurchase plan authorizing the repurchase in 2006 of up to 425,000 (or approximately 4%) of Peoples’ outstanding common shares from time to time in open market transactions.

The repurchased common shares will be held as treasury shares and are anticipated to be used for future exercises of stock options granted under Peoples’ stock option plans, purchases of common shares for Peoples’ Dividend Reinvestment Plan, future issuances of common shares in connection with Peoples’ deferred compensation plans, potential acquisitions and other general corporate purposes.

The timing of the purchases and the actual number of common shares purchased will depend on market conditions and limitations imposed by applicable federal securities laws. The stock repurchase plan will expire on December 31, 2006, and the common shares purchased will not exceed an aggregate purchase price of $11.5 million.

In other action, Peoples’ Board members Carl L. Baker, Jr., George W. Broughton, Wilford D. Dimit and Richard Ferguson were nominated for re-election by the Shareholders at the Annual Meeting to be held on April 13, 2006. Each nominee is up for re-election as a director of Peoples for a three-year term expiring in 2009.

Peoples also announced it will release 2005 earnings before the market opens on January 24, 2006. Peoples’ executive management will conduct a facilitated conference call to discuss fourth quarter and 2005 results of operations at 11:00 a.m. Eastern Standard Time on the same date. 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 can be accessed via the Investor Relations section on Peoples’ website, www.peoplesbancorp.com, where a replay will also be available.

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

 

 

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