Good morning and welcome to the Peoples Bancorp conference call. My name is Keith and I will be your conference facilitator today. Today’s call will cover a discussion of the results of operations for the quarter ended September 30, 2014. Please be advised, all lines have been placed on mute to prevent any background noise. After the speakers remarks there will be a question-and-answer period. (Operator Instructions). This call is also being recorded. If you object to this recording, please disconnect at this time. Please be advised that the commentary in this call will contain projections or other forward-looking statements regarding Peoples future financial performance or future events. These statements are based on management’s current expectations. The statements in this call, which are not historical fact, are forward-looking statements and involve a number of risks and uncertainties called – detailed rather in Peoples Securities and Exchange Commission filings. These including but are not limited to best impact and timing of strategic initiatives, successful completion and integration of planned acquisitions, competitive nature of the financial service industry, the interest rate environment, the effect of federal and/or state’s banking, insurance and tax regulations, changes in economic conditions. Management believes that these forward-looking statements made during this call are based on reasonable assumptions within the bounds of their knowledge of Peoples business and operations. However it is possible that actual results may differ materially from these projections. Peoples disclaims any responsibility to update these forward-looking statements after this call. Peoples third quarter 2014 earnings release was issued this morning and is available at www.peoplesbancorp.com. This call will include about 20 to 30 minutes of prepared commentary followed by a question-and-answer period, which I will facilitate. An archived webcast of this call will be available on www.peoplesbancorp.com. Participants in today’s call will be Chuck Sulerzyski, President and Chief Executive Officer; and Ed Sloane, Chief Financial Officer and Treasurer and each will be available for questions following today’s statements. Mr. Sulerzyski, you may begin your conference.

Thank you Keith. Good morning and thanks for joining us for a review of our third quarter results. It’s been an exciting year for Peoples with the announcement of four bank acquisitions. To-date we have successfully completed the Midwest acquisitions in May and the Ohio Heritage acquisition in August. North Akron will close this weekend and NB&T is expected to close in the first quarter of 2015. These four banks combined add over $1.1 billion in assets and 34 branches to our company. After all deals are complete, Peoples will exceed $3.2 billion in total assets with 81 branch locations throughout the states of Ohio, West Virginia and Kentucky. We would discuss these acquisitions in more detail later. First, we begin with a review of the third quarter. Peoples reported net income of $4.2 million or $0.33 per share. This included $1.6 million in acquisition cost, primarily related to Ohio Heritage and $361,000 in pension settlement costs. Combined, these one time costs reduced earnings per share by $0.10. Earning per share were $0.33 for the linked quarter and $0.23 for the third quarter of 2013. One time cost in the linked quarter and third quarter last year reduced earnings per share by $0.12 and $0.17 respectively. On a year-to-date basis net income was $12.5 million or $1.08 per share and included $3.2 million in acquisition cost and $1.4 million in pension settlement cost. These one time costs reduced year-to-date earnings per share by $0.26. Without the one time cost we continued to experience positive operating leverage as revenue grew 17% year-to-date compared to prior year and expenses grew 14%. Pre-provisioned net revenue was $22.9 million or 1.43% of average assets, a steady improvement compared to $18.4 million or 1.29% of average assets for the same period last year. Cost savings…

Thanks Chuck. It has been a transformative year for our company. We are executing on our strategic plan and with each passing quarter the positive results are becoming more apparent. As Chuck mentioned earlier, pre-provisioned net revenue excluding one time costs has improved throughout the year. While this was due in part to cost takeout from acquisitions, just as apparent as the strong revenue growth we have experienced for the last several quarters. One big driver has been a growing net interest margin in the midst of a long sustained low interest rate environment. Third quarter last year net interest margin was 3.23% and expanded to 3.46% in the third quarter of this year. The margin outperformed our expected range from the quarter in the upper 330s to lower 340s. Loan yields have stabilized year-over-year, while cost of funds declined steadily during this time period. Accretions from the acquisitions added approximately 12 basis points of the 23 basis point margin expansion. Another key driver of revenue growth has been steady performance within our fee-based businesses. Insurance income grew 15% year-to-date, compared to prior year. This growth was due to a combination of strong core growth and performance based contingency income, which increased $946,000 compared to last year. Trust and investment income increased 8% and electronic banking income increased 6%. The only year-over-year decline came from mortgage banking income as refinancing activity continued to lag well below last year. Production levels this year fell 47% from last year. Loan refinancing activity comprised approximately 34% of total production through September of this year, down from 58% for 2013. We are emerging from acquisitions a more efficient company. Excluding one-time costs, our efficiency ratio has improved to 69.1% year-to-date, compared to 71.1% in the prior year. This efficiency improvement is also evident in…

Thanks Ed. As Ed and I have outlined, we are building some special at Peoples. Through acquisitions and organic growth, we are defining who we are as a company and differentiating ourselves from our competitors. It is apparent in our growth numbers. Organic loan balances are up 13% compared to last year and revenue is growing at a 7% to 8% pace. Checking accounts are increasing at a 5% growth rate. This growth rate compares favorably to some of the top performing banks in our region. We are gaining market share and winning by taking care of customers with extraordinary customer service. We focus on the full relationship by sitting side by side with our customers to understand their needs. Then we provide solutions that fit their needs. Our client basing associates go through extensive training and development to understand the products and capabilities of each of our lines of business; commercial, retail, consumer lending, investments and insurance. Our associates are having meaningful discussions with the customers to ensure the customer is not just getting advice, but getting the right advice. We are confident this proven sales process will translate well in the new markets we enter through acquisitions. Our integration teams work closely with our new client facing associates, to ensure exceptional service standards are being consistently delivered by all of our sales associates. We are excited about the changes that have occurred in our company in 2014 and the positive impact it will have as we move forward to 2015. Some specific thoughts on 2015: We are projecting organic loan growth to be sustained in the range of 5% to 7% throughout the year. Commercial loan growth is anticipated to be in the 6% to 8% range and consumer loan growth in the 3% to 5% range. Mortgage…

Thank you. We will now begin the question-and-answer session. (Operator Instructions) And our first question comes from Scott Siefers with Sandler O'Neill. Scott Siefers - Sandler O'Neill & Partners: Good morning guys.

Hey Scott.

Hi Scott. Scott Siefers - Sandler O'Neill & Partners: So Chuck, I was hoping you could maybe expand a little on your thoughts on overall loan growth. It sounds like the pipeline should be stronger than what would be indicated by just looking at the organic growth rates for the third quarter, which were impacted by the payoffs, so it sounds like the full year number. I think last quarter you had sort of suggested you meet or exceed the 8% to 10% number now that sounds maybe just a little soft. I’m wondering, is that just because of the third quarter actual results and then just as you look also to 2015, it looks like a little bit of a slowdown as I anticipated on an organic basis, at least relative to this year. So maybe we can just kind of expand on all those thoughts and just sort of give us your thinking as you look over the next few quarters.

Sure. For the full year this year we will hit the 8% to 10% loan growth number. The slowdown this quarter was not in the production. The slowdown was really in the payoffs. Frankly, the payoffs as I indicated in the script, for the most part we would go out to see some more questionable credits. So the portfolio quality continues to improve. Going forward we’ve had probably five, six quarters now of really great production and we’re doing it by taking share away from others. Its not that there’s true demand in the marketplace. As the portfolio begins to grow, we see the production level staying in the neighborhood of where it has been, but the percentage growth slightly tailing off. We’re no less bullish than we were previously. We obviously don’t have many bad credits left if you look at the credit statistics, so the chances of us getting payoffs from questionable credits is not great going forward. We hope that we provide a level of service and quality to the customers that were not surprised by good customers leaving us. Scott Siefers - Sandler O'Neill & Partners: Okay, perfect. I appreciate that and then maybe Ed, I was hoping you could give some further thoughts on the margin specifically. I appreciate both your and Chucks thoughts as you look through the next several quarters, but you’ll be still impacted by purchase accounting adjustments for some time. So maybe if you could direct your comments to kind of what’s going on with the core margin. I think it was down a couple of basis points this quarter and I guess looking forward what are sort of the pressure points you see and then how much additional remix opportunity will you see. I guess you could still do a little something with the recently closed deals and then you’ve got next year’s close as well. So how are you looking at the puts and takes as you look at the core margin for the next few quarters?

I think really on a core basis we see this as relatively flat in terms of what happens to the margin. If I look at the accretion income that we’ve had this year on the acquisitions versus what we are anticipating for next year, its comparable and that doesn’t even include any accretion income from North Akron or NB&T at this point. So I think if you look at core, that would stay relatively flat and then with the accretion income maybe add a little bit and then obviously some expectation from accretion from NB&T and North Akron. So that’s where we’re able to move the needle somewhat in our margin overall up in the low 350s. If we see an increase in interest rates like there is an expectation, there could be in the middle of next year, then that could be a 25 basis point movement there, you could add another five to seven basis points in net interest margin. So borrowing that we would expect it to be flat or just up slightly. Did that answer your question around that? Scott Siefers - Sandler O'Neill & Partners: Yes it does. I appreciate it Ed. All right, thanks a lot guys.

Thanks.

Thank you. Bye.

Thank you. And the next question comes from Chris McGratty with KBW. Christopher McGratty - Keefe, Bruyette & Woods: Hey, good morning guys.

Doing good. How about yourself? Christopher McGratty - Keefe, Bruyette & Woods: I’m great. Thanks for taking the questions. Just a follow up to Scott, to Chick or Ed, in your asset disclosure – liability disclosed in your Q you screamed (ph) fairly asset sensitive. I was wondering if you can remind me of a couple of things. One, the proportion of your loans that are fixed versus variable and then again, given the recent flat end of the curve, what part of the curve are you most sanative to?

Right, I’ll answer that Chris. Its about 50/50 fixed versus variable in our loan portfolio and in terms of where are we most sensitive, I think if you look at that 10 year and I think if the 10 year flattens out more and lets say drops down below the 2% mark like we saw, at least one point the past several days, then you could start to see a little bit of pressure on the net interest margin. But truly, if its up above that 2%, then I think as I mentioned to Scott’s question, we would see a rather flat net interest margin without the acquisitions in it. Christopher McGratty - Keefe, Bruyette & Woods: Okay, and just (inaudible) your guidance for next year, you kind of, that you provided, does that assume like kind of the consensus moving rates that we get some sort of a move in kind of the middle of the fall.

Just ever so slight. Yes, more or less not. Like I said, we see cores being relatively flat and what would really move the needle is around accretion income, around the acquisitions. Christopher McGratty - Keefe, Bruyette & Woods: All right. Just a question on consumer growth, can you remind me of the size of the auto book. Kind of the cycle (ph) of the yields, because it’s obviously getting a lot of attention from the regulators for banks in general. Thanks.

Actually we just had the regulators in here and that went through it and they were very comfortable. The indirect portfolio just went over $100 million earlier this year. Its mainly A and B credits. Our C and D, the volume of C and D purchase really has not changed over time. It’s really as well kind of a A and B portfolio and I think the average credit score, the average credit score is in the neighborhood of 7-10. Christopher McGratty - Keefe, Bruyette & Woods: Okay, and kind of where in new deals – it seems like you guys fallen a little back on consumer and your guidance, but what are the new deals that consumer pays for today for auto?

What are the new deals, the pricing (Cross Talk) in the high 3s after the deal of premium. Christopher McGratty - Keefe, Bruyette & Woods: Great. That’s all I got. Thanks a lot guys.

Thanks Chris.

Thank you. And the next question comes from Rick Weiss with Boenning.

Hey, good morning.

Good morning, Rick. Welcome!

Thank you. When you are talking about next year, the charge-off rate, I think you said 20 basis points kind of to model. Will it be fair to match that with provisioning?

Yes.

Okay, great. And the second question is with regard to the lending environment, are you seeing more competition this quarter than you were in the past and also I guess is there any more competition on pricing coming from the larger banks.

No. I mean I think we still see some silliness here and there and I think we walk away from time to time. I mean if any of those large banks really want something at LIBOR plus a schemer, they can have it, but I think we – I think we are pretty comfortable with what we are able to get and how we get it. But I can’t say that the last quarter got more competitive. I would say that there’s a lot of banks hungry for loans.

Okay great and then finally I guess, what’s a good tax rate to use for modeling purposes?

32% is a reasonable rate for the short term.

Okay, got it. Okay, thank you very much.

Thank you.

Thank you. (Operator Instructions). And the next question comes from Pat O'Brien with Fox Asset Management.

Guys, you mentioned a number, revenue growth 7% to 8%. Is that an organic number?

Yes.

Okay. I’m calculating. When I look at growth of revenues, I look at growth of revenues per share and I’m calculating 0% growth per share. Do you guys look at that number? That’s the number that matters to me, because I own the stock.

Yes, we do look at growth in revenue per share and earnings per share. Everything that we are doing is trying to improve the per share performance of the company.

So am I missing something here? I mean 0% growth means, looks like the acquired guidance, $0.110 on the dollar.

I’m not following your calculation.

Pat, if you would like – this is Ed. If you’d like we can talk afterwards when we go through some of the detail. Yes, I mean it’s hard for us to envision what you are looking at versus what we are. So it would probably be best to take that offline.

Okay.

But our pre-provision net revenue next year is up quite handsomely. And that would translate. I may agree with Chucks comment. We make the comment in the script, that if you look at pre-provision net revenue as a percentage of assets like an ROA, then you see that up nicely.

I see that share is up 19%, pre-tax pre-provision up 23% and the way I measure it’s a little bit different for I don’t know why, but…

Another things Pat to point out to you is we completed the capital raise in – I think it was April – I’m sorry, August 4 of this year and that capital raise was done in conjunction with the NB&T. So you have about 1.8 million in additional shares associated with that that. So that might be diluting your numbers a little bit.

That’s the number, that’s what’s making the calculation look funny.

Don’t be trying to be giving me a hear attack on my earnings call. Thank you.

Thank you.

Call me Pat if you have any more questions around that.

Yes I would like to go through that and how the additional capital figures into the plans. Obviously some of the acquisitions you are making are with cash. So you are eating into excess capital by acquiring. So you have to issue more and you are issuing it faster than you are acquiring. I mean you have excess capital, which I assume will be taken up by the future acquisitions.

Well, it’s hard to tell, but we certainly are looking at acquisitions and I think that’s a reasonable assumption.

Its part of our capital planning strategy. We look at each deal individually to determine how much cash and stock and how that fits into the overall capital structure of the organization.

Okay, I’ll give you a call later.

Okay, I appreciate the ownership.

Okay.

Thank you. And the next question comes from Daniel Cardenas with Raymond James.

Good morning guys.

Hi, Dan.

A couple of quick questions here. On the pension settlement charges this quarter, does that kind of finish you guys up or could we expect may be some more somewhere down the future.

Yes, just from what I know at this point, that should continue to drop-off. It dropped a bit in the third quarter from the activity we had in the first half of the year and that should come down even more from there. Next year should be much, much lighter than what we saw this year.

And then in terms of integration of the transactions, is that pretty much on schedule with what you are you internally sketched out or a little bit ahead, a little bit lower. Any color there?

Yes, its right no line, North Akron going this weekend. As mentioned in the script, NB&T is going to close and convert in the first quarter. Originally we had hopes that we could close it 12/31. That does not look possible at this time.

And then in terms of the loan guidance you gave for 4Q, when you expect 4Q to look like third Q does that – that’s not including the $37 million or $36 million and the loans that paid of this quarter, correct?

Not following you. On the loan side…

Yes, in terms of expected loan growth, is that – the number that you are looking or expecting, does that – quarter to quarter is that going to be the same or is it going to actually factor in an additional $36 million in pay-off.

Yes, we are factoring growth in the fourth quarter and the expectation for the full year is to be in that targeted range of 8% to 10%.

All right, great. Thanks guys.

Thanks.

Thank you. At this time there are no future questions. Sir, do you have any closing remarks.

Yes. I want to thank everyone for participating. Please remember that our earnings release and a webcast of this call will be archived on PeoplesBancorp.com under the Investor Relations section. Thanks for your time and have a good day.

Thank you. The conference is now concluded. Thank you for attending today’s presentation. You may now disconnect your lines.