Nasdaq: PEBO Investor In estor Pr Prese esentation ntation rd Quart 3 rd arter er 2017 Filed by Peoples Bancorp Inc. Pursuant to Rule 425 under the Securities Act of 1933 and deemed filed pursuant to Rule 14a-12 under the Securities Exchange Act of 1934 Subject Company: ASB Financial Corp. Commission File No. 16772
Sa Safe e Harb rbor or St Statement tement Statements in this presentation which are not historical are “forward -looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. These forward-looking statements may include discussions of the strategic plans and objectives or anticipated future performance and events of Peoples Bancorp Inc. (“Peoples”) . The information contained in this presentation should be read in conjunction with Peoples’ Annual Report on Form 10-K for the fiscal year ended December 31, 2016 (the “ 2016 Form 10- K”) and Quarterly Report on Form 10-Q for the quarter ended September 30, 2017, filed with the Securities and Exchange Commission (“SEC”) and available on the SEC’s website (www.sec.gov) or at Peoples’ website (www.peoplesbancorp.com). Investors are cautioned that forward-looking statements, which are not historical fact, involve risks and uncertainties, including those detailed in Peoples’ 2016 Form 10-K under the section, “Risk Factors” in Part I, Item 1A. As such, actual results could differ materially from those contemplated by forward- looking statements made in this presentation. Management believes that the expectations in these forward-looking statements are based upon reasonable assumptions within the bounds of management's knowledge of Peoples’ business and operations. Peoples disclaims any responsibility to update these forward-looking statements to reflect events or circumstances after the date of this presentation. 2
Add dditional tional Inf nformatio ormation This presentation does not constitute an offer to sell, or the solicitation of an offer to buy, securities of Peoples. Peoples will file a registration statement on Form S-4 and will file other documents regarding the proposed merger with ASB Financial Corp (“ASB”) referenced in this presentation with the SEC to register the shares of Peoples common stock to be issued to the shareholders of ASB. The registration statement will include a proxy statement/prospectus which will be sent to the shareholders of ASB after the registration statement has been declared effective by the SEC and in advance of its special meeting of shareholders to be held to consider the proposed merger. SHAREHOLDERS AND INVESTORS ARE URGED TO READ THE REGISTRATION STATEMENT AND THE PROXY STATEMENT/PROSPECTUS REGARDING THE PROPOSED MERGER WHEN IT BECOMES AVAILABLE AND ANY OTHER RELEVANT DOCUMENTS FILED WITH THE SEC, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THOSE DOCUMENTS, BECAUSE THEY CONTAIN IMPORTANT INFORMATION ABOUT PEOPLES, ASB AND THE PROPOSED TRANSACTION. A free copy of these documents and other filings containing information about Peoples, may be obtained after their filing at the SEC’s website (www.sec.gov). Additionally, free copies of these documents may be obtained on Peoples’ website (www.peoplesbancorp.com) in the “Investor Relations” section of or by a written request mailed to: Peoples Bancorp Inc. Attn: Investor Relations 138 Putnam Street PO Box 738 Marietta OH 45750-0738 3
Ov Over erview view • Profile ile an and Inv nvest stmen ment t Rat atio iona nale le • Acqu quis isition ition • St Strat ategy gy • Q3 2017 17 Performanc rmance • Appendix pendix 4
Pr Prof ofile le and nd Inv nvestment estment Ra Rationale onale
Cor orporate porate Pr Prof ofile ile • Finan ancia ial ho holdi ding ng com ompany pany he headqu dquar artere ered in Mariet etta, a, Ohi hio. o. – Provides a broad range of banking, insurance, and investment services • Cur urren ent snapshot: pshot: – Assets: $3.6 billion; Loans: $2.3 billion – Deposits: $2.7 billion – Market capitalization: $624 million – Assets Under Admin/Mgmt: $2.3 billion • Cur urren ent foo ootpr print int – Demographics: • Median income: $44,962 – Key industries: • Health care • Manufacturing (plastics/petrochemicals) • Oil/gas/coal activities (shale opportunities) • Education and social services • Tourism – Unemployment: • OH: 5.2% OH: 5.3% • WV: 4.7% WV: 5.1% • KY: 5.3% KY: 5.2% • US: 4.3% US: 4.2% Market data as of October 30, 2017 Unemployment data as of September 2017 Financial data as of September 30, 2017 6 6
Inv nvestmen estment t Ra Rationale onale • Unique communi nity ty banking ng model – Greater revenue diversity (32% fee-based) than the average $1 - 10 billion bank – Strong community reputation and active involvement – Local market teams capable of outmaneuvering larger banks – More sophistication and product breadth than smaller banks ( insurance, retirement plans, swaps, etc.) • Stron ong, g, diverse fee-base sed d busines nesse ses – 20th largest bank-owned insurance agency, with expertise in commercial, personal, life & health – Wealth management – $2.3 billion in assets under management, including brokerage, trust, and retirement planning • Capacity ity to grow our franchi hise se – Strong capital and fundamentals to support M&A strategy – Proven integration capabilities and scalable infrastructure, including recently upgraded, best-in- class core banking platform • Committe tted to discipl iplined ned executio tion – Strong, integrated enterprise risk management process – Dedicated to delivering positive operating leverage – Focused on business line performance contribution, operating efficiency, and credit quality • Attract activ ive e di dividen dend d op oppo portunity – Targeting 40% to 50% payout ratio – Dividend increased from $0.15 to $0.22 per share in past two years 7
Acqui uisit ition ion
ASB SB Fi Finan nancial cial Cor orp p Tra ransa nsaction ction ASB Financial Corp (OTC Pink: ASBN) Deal announced on October 24, 2017 Six full-service bank branches in the Portsmouth and Cincinnati, Ohio regions, and two loan Transact ction ion Summary production offices in the Deal Value: $39.6 million 153% of TBV Cincinnati, Ohio region $20.00 per share Consideration: 85% stock / 15% cash Financial Summary as of 6/30/17 Cost savings: 35% 2018 Phase-in = 75% - Total assets = $293.6 million 2019 Phase-in = 100% - Total loans = $241.5 million Loan credit mark: 1.40% (negative) - Total deposits = $210.4 million Loan interest rate mark: 0.60% (positive) - Premium to core deposits = 8.0% One-time costs: $8.5 million Financial Impact Due diligence: Completed - Full Year 1 EPS Accretion of about 6% Required approvals: ASB shareholder approval, - Tangible book earn-back < 2 years regulatory approval - Price / LTM earnings = 14.9 x 2 nd Quarter of 2018 Anticipated closing / Conversion dates: 9
St Stra rategy tegy
Stra St rategic tegic Ro Road d Ma Map “Best Community Bank in America” • • Commitment to Superior Shareholder Returns Great Place to Bank • • Great Place to Work Meaningful Impact on Our Communities Extraor aordin inary ary Respons onsib ible le Profi fitab table le Reve venu nue e Growt wth First st-Cla lass Workp kplace lace Risk Manag agem ement ent Client nt Experience ience • Broad • Our Way of Life oad Delive ivery Channels els • Under • Right t People le / R Right ht Job erstan tand Customer er Needs • Delig • Asset ight the Customer er t Quality ity • Appetite tite for Winnin ing • Sales es & Service vice Proce cess • Knowled • Complian edgeable, eable, Caring ng iance ce / Regulatory latory • Define • Culture ne the Ideal al Client nt ure of Lear arnin ing Associates ciates Consisten stently tly Profi file le for New Delive iverin ing Competent tent • Oper eration ational al Risk Advice ice / Solution tions Relation ationships ips • Coaching hing / D Developm elopment ent • Infor • Best Client ormation ation Secur urity ty nt Retentio ention • Consistent tent Exper erien ience ce at • No Whiners Every Touch ch Point ers / No Excus uses es • Deepen en Relat lation ionships ips / • Change e Management ement Cross Sell • DWYSYW YWD • Accoun ountab tabil ility ity / • Execu cution tion Risk Performan formance ce Metrics ics • Seek k Client t Referrals errals • Relation ationship ip Revie views s / V VIP Calls; s; Value e Added ed • Reputa • M & utatio tiona nal l Risk & A • Reward ard / Recog ogniti ition on 1. Create 1. te a Winni ning ng Culture lture: Embrace change / be active learners / help each other win / communicate effectively How w we 2. 2. Human n Capita ital l Developm lopment: nt: Define the behaviors and goals / provide the training / measure / coach / reward do it: 3. 3. Pricing ing Disci cipl pline ine: Focus on the risk adjusted margin / fair prices, fair returns 4. 4. Opera rating ting Effic icien ienci cies: Quest for continuous improvement / revenue growth faster than expense growth 5. 5. Merger Integra gration: tion: Manage the risk / retain and grow the revenue / lower the cost / delight the community 11
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