UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM
11-K
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(Mark
One)
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x
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ANNUAL
REPORT PURSUANT TO SECTION 15(d) OF THE
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SECURITIES
EXCHANGE ACT OF 1934
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For
the fiscal year ended December 31,
2006
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o
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TRANSITION
REPORT PURSUANT TO SECTION 15(d) OF THE
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SECURITIES
EXCHANGE ACT OF 1934
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For
the transition period
fromto
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Commission
File No. 0-16772
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A.
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Full
title of the plan and address of the
plan:
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Peoples
Bancorp Inc. Retirement Savings Plan
138
Putnam Street, P.O. Box 738
Marietta,
Ohio 45750
Attn:
The Retirement Planning Committee
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B.
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Name
of issuer of the securities held pursuant to the plan and address
of its
principal executive office:
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Peoples
Bancorp Inc.
138
Putnam Street, P.O. Box 738
Marietta,
Ohio 45750
SIGNATURES
The
Plan. Pursuant to the requirements
of the Securities and Exchange Act of 1934, the trustees (or other persons
who
administer the employee benefit plan) have duly caused this annual report to
be
signed on its behalf by the undersigned hereunto duly authorized.
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PEOPLES
BANCORP INC.
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RETIREMENT
SAVINGS PLAN
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Date:
June 19, 2007
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By: /s/
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JOHN
E. DAKESIAN
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John
E. Dakesian
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Chairperson,
Retirement Plan Committee
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Peoples
Bancorp Inc. Retirement Savings Plan
EIN
31-0987416 PN 002
Accountants’
Report and Financial Statements
December
31, 2006 and 2005
Peoples
Bancorp Inc. Retirement Savings Plan
December
31, 2006 and 2005
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1
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Financial
Statements
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2
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3
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4
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Supplemental
Schedule
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9
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Plan
Administrator
Peoples
Bancorp Inc. Retirement Savings Plan
Marietta,
Ohio
We
have
audited the accompanying statements of net assets available for benefits of
Peoples Bancorp Inc. Retirement Savings Plan as of December 31, 2006 and 2005
and the related statements of changes in net assets available for benefits
for
the years then ended. These financial statements are the
responsibility of the Plan’s management. Our responsibility is to
express an opinion on these financial statements based on our
audits.
We
conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require
that we plan and perform the audit to obtain reasonable assurance about whether
the financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis
for our opinion.
In
our
opinion, the financial statements referred to above present fairly, in all
material respects, the net assets available for benefits of Peoples Bancorp
Inc.
Retirement Savings Plan as of December 31, 2006 and 2005, and the changes in
its
net assets available for benefits for the years then ended in conformity with
accounting principles generally accepted in the United States of
America.
The
accompanying supplemental schedule is presented for the purpose of additional
analysis and is not a required part of the basic financial statements, but
is
supplementary information required by the Department of Labor’s Rules and
Regulations for Reporting and Disclosure under the Employee Retirement Income
Security Act of 1974. This supplemental schedule is the
responsibility of the Plan’s management. The supplemental schedule
has been subjected to the auditing procedures applied in the audits of the
basic
financial statements and, in our opinion, is fairly stated, in all material
respects, in relation to the basic financial statements taken as a
whole.
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/s/
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BKD,
LLP
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BKD,
LLP
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Cincinnati,
Ohio
June
14,
2007
Federal
Employer Identification Number: 44-0160260
Page
1
Peoples
Bancorp Inc. Retirement Savings Plan
December
31, 2006 and 2005
Assets
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2006
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2005
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Investments,
at fair value
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$ 24,364,355
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$ 22,392,505
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Employer’s
contributions receivable
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17,225
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10,308
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Net
Assets Available for Benefits
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$ 24,381,580
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$ 22,402,813
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See
Notes to Financial
Statements 2
Page 2
Peoples
Bancorp Inc. Retirement Savings Plan
Statements
of Changes in Net
Assets Available for
Benefits
Years
Ended December 31, 2006 and 2005
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2006
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2005
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Investment
Income
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Net
appreciation in fair value of investments
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$ 1,580,508
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$ 1,169,596
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Interest
and dividends
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821,875
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467,165
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Net
investment income
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2,402,383
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1,636,761
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Contributions
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Employer
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680,966
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641,666
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Participants
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1,353,995
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1,258,577
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Rollovers
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187,122
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229,406
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2,222,083
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2,129,649
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Total
additions
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4,624,466
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3,766,410
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Deductions
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Benefits
paid to participants
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2,588,791
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1,683,539
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Administrative
expenses
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56,908
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50,551
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Total
deductions
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2,645,699
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1,734,090
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Net
Increase
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1,978,767
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2,032,320
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Net
Assets Available for Benefits, Beginning of Year
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22,402,813
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20,370,493
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Net
Assets Available for Benefits, End of Year
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$ 24,381,580
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$ 22,402,813
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See
Notes
to Financial Statements 3
Page
3
Peoples
Bancorp Inc. Retirement Savings Plan
December
31, 2006 and 2005
The
following description of the Plan provides only general
information. Participants should refer to the Plan Document and
Summary Plan Description for a more complete description of the Plan’s
provisions, which are available from the plan administrator.
General
The
Plan
is a defined contribution plan sponsored by Peoples Bancorp Inc. (Company)
for
the benefit of its full-time employees who have at least one hour of service
and
are age 21 or older. The Plan is subject to the provisions of the
Employee Retirement Income Security Act of 1974 (ERISA). AMVESCAP
National Trust Company is the trustee and serves as the custodian of the
Plan.
Contributions
The
Plan
permits eligible employees through a salary deferral election to make annual
contributions of up to 100% of eligible compensation. Employee
rollover contributions are also permitted. The Company makes matching
contributions of 100% of the employees’ salary deferral amounts up to 3% of the
employees’ compensation and 50% of the employees’ salary deferral amounts on the
next 2% of the employees’ compensation. Company profit-sharing
contributions are discretionary as determined by the Company’s Board of
Directors. Contributions are subject to certain
limitations. Forfeitures are used to reduce Company
contributions.
Participant
Investment Account Options
Investment
account options available include various funds. Each participant has
the option of directing his contributions into any of the separate investment
accounts and may change the allocation daily.
The
Plan
document also includes an automatic deferral feature whereby a participant
is
treated as electing to defer a certain percentage of eligible compensation
unless the participant made an affirmative election otherwise.
Participant
Accounts
Each
participant’s account is credited with the participant’s contribution, the
Company’s contribution and plan earnings and is charged with an allocation of
administrative expenses. Allocations are based on participant
earnings or account balances, as defined. The benefits to which a
participant is entitled is the benefit that can be provided from the
participant’s vested account.
Page
4
Peoples
Bancorp Inc. Retirement Savings Plan
Notes
to Financial Statements
December
31, 2006 and 2005
Vesting
Participants
are immediately vested in their voluntary contributions and the Company’s profit
sharing and matching contributions plus earnings thereon.
Payment
of Benefits
Upon
termination of service, an employee may elect to receive either a lump-sum
amount equal to the value of his account or a monthly, quarterly, or annual
installments over a period of not more than the participant’s assumed life
expectancy.
Participant
Loans
The
Plan
document includes provisions authorizing loans from the Plan to active eligible
participants. Loans are made to any eligible participant
demonstrating a qualifying need. The minimum amount of a loan shall
be $1,000. The maximum amount of a participant’s loan is determined
by the available loan balance restricted to the lesser of $50,000 or 50% of
the
participant’s vested account balance. All loans are covered by demand
notes and are repayable over a period not to exceed five years (except for
loans
for the purchase of a principal residence) through payroll withholdings unless
the participant is paying the loan in full. Interest on the loans is
based on local prevailing rates as determined by the plan
administrator.
Plan
Termination
Although
it has not expressed an intention to do so, the Company has the right under
the
Plan to discontinue its contributions at any time and to terminate the Plan,
subject to the provisions of ERISA.
| Note 2. |
Summary
of Significant Accounting
Policies
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Method
of Accounting
The
accompanying financial statements are prepared on the accrual method of
accounting.
Page 5
Peoples
Bancorp Inc. Retirement Savings Plan
Notes
to Financial Statements
December
31, 2006 and 2005
Use
of Estimates
The
preparation of financial statements in conformity with accounting principles
generally accepted in the United States of America requires management to make
estimates and assumptions that affect the reported amounts of net assets and
changes in net assets and disclosure of contingent assets and liabilities at
the
date of the financial statements. Actual results could differ from
those estimates.
Valuation
of Investments and Income Recognition
Quoted
market prices, if available, are used to value
investments. Participant loans are valued at cost, which approximates
fair value.
The
investments in Peoples Bancorp Inc. Common Stock, has been unitized and is
comprised of cash and Peoples Bancorp Inc. Common Stock. The Plan
holds between 3% and 5% of these units in cash in order to provide liquidity
for
timely distributions. At December 31, 2006 and 2005 these units are
comprised of 246,965 and 268,837 shares of Peoples Bancorp Inc. Common Stock
and
cash of $262,107 and $375,685, respectively.
Purchases
and sales of securities are recorded on a trade-date basis. Interest
income is recorded on the accrual basis. Dividends are recorded on
the ex-dividend date.
Plan
Tax Status
The
Plan
obtained its latest determination letter on January 30, 2004, in which the
Internal Revenue Service stated that the Plan and related trust, as then
designed, were in compliance with the applicable requirements of the Internal
Revenue Code and therefore not subject to tax.
Payment
of Benefits
Benefit
payments to participants are recorded upon distribution.
Page 6
Peoples
Bancorp Inc. Retirement Savings
Plan
Notes
to Financial Statements
December
31, 2006 and 2005
| Note 3. |
Investments
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The
Plan’s investments are held by a bank-administered trust. The Plan’s
investments (including investments bought, sold and held during the year)
appreciated (depreciated) in fair value are presented in the following
table. Investments that represented 5% or more of the Plan’s assets
are separately identified.
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2006
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Net
Appreciation in Fair Value During Year
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Fair
Value
at
End of Year
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Investments
at fair value as determined by quoted market
price
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Mutual
funds
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Columbia
Acorn-Z
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$ 102,857
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$ 2,193,975
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Neuberger
Berman International
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140,391
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1,317,494
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American
Growth Fund of America
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74,103
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1,585,623
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Dodge
& Cox Common Stock
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155,763
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1,682,233
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Dodge
& Cox Balanced
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148,270
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2,438,674
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Other
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68,920
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1,900,723
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Common/collective
trust funds
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INVESCO
500 Index Trust
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295,764
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2,175,713
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INVESCO
Stable Value Trust
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588
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2,026,182
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Other
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79,838
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1,094,463
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Peoples
Bancorp Inc. common stock units
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514,014
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7,645,276
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1,580,508
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24,060,356
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Investments
at cost which approximates market
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Participant
loans
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––
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303,999
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Total
investments
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$ 1,580,508
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$ 24,364,355
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Page 7
Peoples
Bancorp Inc. Retirement Savings Plan
Notes
to Financial Statements
December
31, 2006 and 2005
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2005
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Net
Appreciation (Depreciation) in Fair Value During
Year
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Fair
Value
at
End of Year
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Investments
at fair value as determined by quoted market
price
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Mutual
funds
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||||
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Columbia
Acorn-Z Fund
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$ 116,683
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$ 2,110,752
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Neuberger
Berman International
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159,209
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1,181,011
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American
Growth Fund of America
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123,434
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1,222,184
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Dodge
& Cox Common Stock
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60,855
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1,284,637
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Dodge
& Cox Balanced
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46,580
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1,944,220
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Dreyfus
Mid Cap Index
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47,134
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1,146,569
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Other
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(57,374)
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469,008
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Common/collective
trust funds
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||||
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INVESCO
500 Index Trust
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86,062
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1,909,988
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INVESCO
Stable Value Trust
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––
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1,885,650
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Other
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57,776
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946,530
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Peoples
Bancorp Inc. common stock units
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529,237
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8,047,126
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1,169,596
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22,147,675
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Investments
at cost which approximates market
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Participant
loans
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––
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244,830
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Total
investments
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$ 1,169,596
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$ 22,392,505
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Interest
and dividends realized on the Plan’s investments for the years ended 2006 and
2005 were $821,875 and $467,165, respectively.
| Note 4. |
Party-in-Interest
Transactions
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Party-in-interest
transactions include those with fiduciaries or employees of the Plan, any person
who provides services to the Plan, an employer whose employees are covered
by
the Plan, an employee organization whose members are covered by the Plan, a
person who owns 50 percent or more of such employer or employee association,
or
relatives of such persons.
The
Plan
holds common stock of Peoples Bancorp Inc., which is the plan
sponsor. The Plan also invests in certain funds of the Plan
trustee. The Plan paid $56,908 and $47,844 of recordkeeping fees to
AMVESCAP National Trust Company during 2006 and 2005,
respectively. The Company provides certain administrative services at
no cost to the plan.
Supplemental
Schedule
Peoples
Bancorp Inc. Retirement Savings
Plan
EIN
31-0987416 PN 002
Schedule
H, Line 4i – Schedule of Assets
(Held at End of
Year)
December
31, 2006
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Identity
of Issuer
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Description
of Investment
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Current
Value
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American
Century Strategic Allocation Conservative Fund
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22,454
Units
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$ 127,542
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American
Century Strategic Allocation Moderate Fund
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22,693
Units
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159,081
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American
Century Strategic Allocation Aggressive Fund
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47,735
Units
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397,158
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Columbia
Acorn-Z Fund
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73,846
Units
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2,193,975
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Neuberger
Berman International
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49,013
Units
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1,317,494
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*Invesco
500 Index Trust
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57,711
Units
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2,175,713
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*Invesco
Structured Small Cap Value Equity Trust
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3,457
Units
|
449,230
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*Invesco
Core Fixed Income Trust
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18,850
Units
|
645,233
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*Invesco
Stable Value Trust
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2,026,182
Units
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2,026,182
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*Peoples
Bancorp Inc. Common Stock Units
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417,319
Units
|
7,645,276
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American
Growth Fund of America
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48,239
Units
|
1,585,623
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Dodge
& Cox Common Stock Fund
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10,962
Units
|
1,682,233
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||
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Dodge
& Cox Balanced Fund
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28,005
Units
|
2,438,674
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Dreyfus
Mid Cap Index
|
38,317
Units
|
1,120,786
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||
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American
Funds Capital Income
|
1,573
Units
|
96,156
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||
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Participant
loans
|
Interest
rates ranging from 6.00% to 10.25%
|
303,999
|
||
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$ 24,364,355
|
||||
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*Parties-in-interest
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Page 9