Peoples Bancorp Inc. filed SEC Form 8-K: Results of Operations and Financial Condition, Financial Statements and Exhibits
$PEBO
Major Banks
Finance
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): July 26, 2024 (July 23, 2024)
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Item 2.02 Results of Operations and Financial Condition
On July 23, 2024, management of Peoples Bancorp Inc. (“Peoples”) conducted a facilitated conference call at approximately 11:00 a.m., Eastern Standard Time, to discuss results of operations for the quarter and twelve months ended June 30, 2024. A replay of the conference call audio will be available on Peoples’ website, www.peoplesbancorp.com, in the “Investor Relations” section for one year. A copy of the transcript of the conference call is included as Exhibit 99.1 to this Current Report on Form 8-K.
The information contained in this Item 2.02 and Exhibit 99.1 included with this Current Report on Form 8-K, is being furnished pursuant to Item 2.02 and shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section, nor shall such information be deemed to be incorporated by reference in any registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as otherwise stated in such filing.
During the conference call, management referred to non-Generally Accepted Accounting Principles ("US GAAP") financial measures that are used by management to provide information useful to investors in understanding Peoples' operating performance and trends, and to facilitate comparisons with the performance of Peoples' peers. The following tables show the differences between the non-US GAAP financial measures referred to during the conference call and the most directly comparable US GAAP-based financial measures.
| Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||
| June 30, | March 31, | June 30, | June 30, | ||||||||||||||||||||||||||
| (Dollars in thousands) | 2024 | 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||||||
| Core non-interest expense: | |||||||||||||||||||||||||||||
| Total non-interest expense | $ | 68,758 | $ | 68,465 | $ | 70,623 | $ | 137,223 | $ | 127,102 | |||||||||||||||||||
| Less: acquisition-related expenses | — | (84) | 10,709 | (84) | 11,260 | ||||||||||||||||||||||||
| Add: COVID -19 Employee Retention Credit | — | — | 548 | — | 548 | ||||||||||||||||||||||||
| Core non-interest expense | $ | 68,758 | $ | 68,549 | $ | 60,462 | $ | 137,307 | $ | 116,390 | |||||||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||
| June 30, | March 31, | June 30, | June 30, | ||||||||||||||||||||||||||
| (Dollars in thousands) | 2024 | 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||||||
| Efficiency ratio: | |||||||||||||||||||||||||||||
| Total non-interest expense | $ | 68,758 | $ | 68,465 | $ | 70,623 | $ | 137,223 | $ | 127,102 | |||||||||||||||||||
| Less: amortization of other intangible assets | 2,787 | 2,788 | 2,800 | 5,575 | 4,671 | ||||||||||||||||||||||||
| Adjusted total non-interest expense | 65,971 | 65,677 | 67,823 | 131,648 | 122,431 | ||||||||||||||||||||||||
| Total non-interest income | 23,704 | 25,779 | 21,015 | 49,483 | 40,075 | ||||||||||||||||||||||||
| Less: net loss on investment securities | (353) | (1) | (166) | (354) | (2,101) | ||||||||||||||||||||||||
| Less: net loss on asset disposals and other transactions | (428) | (341) | (1,665) | (769) | (1,911) | ||||||||||||||||||||||||
| Total non-interest income, excluding net gains and losses | 24,485 | 26,121 | 22,846 | 50,606 | 44,087 | ||||||||||||||||||||||||
| Net interest income | 86,613 | 86,640 | 84,853 | 173,253 | 157,731 | ||||||||||||||||||||||||
| Add: fully tax-equivalent adjustment (a) | 352 | 352 | 386 | 705 | 738 | ||||||||||||||||||||||||
| Net interest income on a fully tax-equivalent basis | 86,965 | 86,992 | 85,239 | 173,958 | 158,469 | ||||||||||||||||||||||||
| Adjusted revenue | $ | 111,450 | $ | 113,113 | $ | 108,085 | $ | 224,564 | $ | 202,556 | |||||||||||||||||||
| Efficiency ratio | 59.19 | % | 58.06 | % | 62.75 | % | 58.62 | % | 60.44 | % | |||||||||||||||||||
| Efficiency ratio adjusted for non-core items: | |||||||||||||||||||||||||||||
| Core non-interest expense | $ | 68,758 | $ | 68,549 | $ | 60,462 | $ | 137,307 | $ | 116,390 | |||||||||||||||||||
| Less: amortization of other intangible assets | 2,787 | 2,788 | 2,800 | 5,575 | 4,671 | ||||||||||||||||||||||||
| Adjusted core non-interest expense | 65,971 | 65,761 | 57,662 | 131,732 | 111,719 | ||||||||||||||||||||||||
| Adjusted revenue | $ | 111,450 | $ | 113,113 | $ | 108,085 | $ | 224,564 | $ | 202,556 | |||||||||||||||||||
| Efficiency ratio adjusted for non-core items | 59.19 | % | 58.14 | % | 53.35 | % | 58.66 | % | 55.15 | % | |||||||||||||||||||
(a) Tax effect is calculated using a 21% statutory federal corporate income tax rate.
| At or For the Three Months Ended | |||||||||||||||||||||||||||||
| June 30, | March 31, | December 31, | September 30, | June 30, | |||||||||||||||||||||||||
| (Dollars in thousands, except per share data) | 2024 | 2024 | 2023 | 2023 | 2023 | ||||||||||||||||||||||||
| Tangible equity: | |||||||||||||||||||||||||||||
| Total stockholders' equity | $ | 1,077,833 | $ | 1,062,002 | $ | 1,053,534 | $ | 993,219 | $ | 998,907 | |||||||||||||||||||
| Less: goodwill and other intangible assets | 406,417 | 409,285 | 412,172 | 408,494 | 413,172 | ||||||||||||||||||||||||
| Tangible equity | $ | 671,416 | $ | 652,717 | $ | 641,362 | $ | 584,725 | $ | 585,735 | |||||||||||||||||||
| Tangible assets: | |||||||||||||||||||||||||||||
| Total assets | $ | 9,226,461 | $ | 9,270,774 | $ | 9,157,382 | $ | 8,942,534 | $ | 8,786,635 | |||||||||||||||||||
| Less: goodwill and other intangible assets | 406,417 | 409,285 | 412,172 | 408,494 | 413,172 | ||||||||||||||||||||||||
| Tangible assets | $ | 8,820,044 | $ | 8,861,489 | $ | 8,745,210 | $ | 8,534,040 | $ | 8,373,463 | |||||||||||||||||||
| Tangible book value per common share: | |||||||||||||||||||||||||||||
| Tangible equity | $ | 671,416 | $ | 652,717 | $ | 641,362 | $ | 584,725 | $ | 585,735 | |||||||||||||||||||
| Common shares outstanding | 35,498,977 | 35,486,234 | 35,314,745 | 35,395,990 | 35,374,916 | ||||||||||||||||||||||||
| Tangible book value per common share | $ | 18.91 | $ | 18.39 | $ | 18.16 | $ | 16.52 | $ | 16.56 | |||||||||||||||||||
| Tangible equity to tangible assets ratio: | |||||||||||||||||||||||||||||
| Tangible equity | $ | 671,416 | $ | 652,717 | $ | 641,362 | $ | 584,725 | $ | 585,735 | |||||||||||||||||||
| Tangible assets | $ | 8,820,044 | $ | 8,861,489 | $ | 8,745,210 | $ | 8,534,040 | $ | 8,373,463 | |||||||||||||||||||
| Tangible equity to tangible assets | 7.61 | % | 7.37 | % | 7.33 | % | 6.85 | % | 7.00 | % | |||||||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||
| June 30, | March 31, | June 30, | June 30, | ||||||||||||||||||||||||||
| (Dollars in thousands) | 2024 | 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||||||
| Pre-provision net revenue: | |||||||||||||||||||||||||||||
| Income before income taxes | $ | 35,876 | $ | 37,852 | $ | 27,262 | $ | 73,728 | $ | 60,868 | |||||||||||||||||||
| Add: provision for credit losses | 5,683 | 6,102 | 7,983 | 11,785 | 9,836 | ||||||||||||||||||||||||
| Add: loss on OREO | — | — | 1,612 | — | 1,622 | ||||||||||||||||||||||||
| Add: loss on investment securities | 353 | 1 | 166 | 354 | 2,101 | ||||||||||||||||||||||||
| Add: loss on other assets | 397 | 309 | 45 | 706 | 274 | ||||||||||||||||||||||||
| Add: loss on other transactions | 31 | 32 | 8 | 63 | 15 | ||||||||||||||||||||||||
| Pre-provision net revenue | $ | 42,340 | $ | 44,296 | $ | 37,076 | $ | 86,636 | $ | 74,716 | |||||||||||||||||||
| Total average assets | 9,180,454 | 9,021,651 | 8,342,883 | 9,101,052 | 7,792,579 | ||||||||||||||||||||||||
| Pre-provision net revenue to total average assets (annualized) | 1.85 | % | 1.97 | % | 1.78 | % | 1.91 | % | 1.93 | % | |||||||||||||||||||
| Weighted-average common shares outstanding – diluted | 35,117,648 | 35,051,810 | 32,649,976 | 35,071,550 | 30,314,504 | ||||||||||||||||||||||||
| Pre-provision net revenue per common share – diluted | $ | 1.21 | $ | 1.26 | $ | 1.13 | $ | 2.45 | $ | 2.45 | |||||||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||
| June 30, | March 31, | June 30, | June 30, | ||||||||||||||||||||||||||
| (Dollars in thousands) | 2024 | 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||||||
| Annualized net income adjusted for non-core items: | |||||||||||||||||||||||||||||
| Net income | $ | 29,007 | $ | 29,584 | $ | 21,096 | $ | 58,591 | $ | 47,656 | |||||||||||||||||||
| Add: net loss on investment securities | 353 | 1 | 166 | 354 | 2,101 | ||||||||||||||||||||||||
| Less: tax effect of net loss on investment securities (a) | 74 | — | 35 | 74 | 441 | ||||||||||||||||||||||||
| Add: net loss on asset disposals and other transactions | 428 | 341 | 1,665 | 769 | 1,911 | ||||||||||||||||||||||||
| Less: tax effect of net loss on asset disposals and other transactions (a) | 90 | 72 | 349 | 161 | 401 | ||||||||||||||||||||||||
| Add: acquisition-related expenses | — | (84) | 10,709 | (84) | 11,260 | ||||||||||||||||||||||||
| Less: tax effect of acquisition-related expenses (a) | — | (18) | 2,249 | (18) | 2,365 | ||||||||||||||||||||||||
| Less: COVID -19 Employee Retention Credit | — | — | 548 | — | 548 | ||||||||||||||||||||||||
| Add: tax effect of COVID -19 Employee Retention Credit | — | — | 115 | — | 115 | ||||||||||||||||||||||||
| Net income adjusted for non-core items | $ | 29,624 | $ | 29,788 | $ | 30,570 | $ | 59,413 | $ | 59,288 | |||||||||||||||||||
| Days in the period | 91 | 91 | 91 | 182 | 181 | ||||||||||||||||||||||||
| Days in the year | 366 | 366 | 365 | 366 | 365 | ||||||||||||||||||||||||
| Annualized net income | $ | 116,666 | $ | 118,986 | $ | 84,616 | $ | 117,826 | $ | 96,102 | |||||||||||||||||||
| Annualized net income adjusted for non-core items | $ | 119,147 | $ | 119,807 | $ | 122,616 | $ | 119,479 | $ | 119,559 | |||||||||||||||||||
| Return on average assets: | |||||||||||||||||||||||||||||
| Annualized net income | $ | 116,666 | $ | 118,986 | $ | 84,616 | $ | 117,826 | $ | 96,102 | |||||||||||||||||||
| Total average assets | $ | 9,180,454 | $ | 9,021,651 | $ | 8,342,883 | $ | 9,101,052 | $ | 7,792,579 | |||||||||||||||||||
| Return on average assets | 1.27 | % | 1.32 | % | 1.01 | % | 1.29 | % | 1.23 | % | |||||||||||||||||||
| Return on average assets adjusted for non-core items: | |||||||||||||||||||||||||||||
| Annualized net income adjusted for non-core items | $ | 119,147 | $ | 119,807 | $ | 122,616 | $ | 119,479 | $ | 119,559 | |||||||||||||||||||
| Total average assets | $ | 9,180,454 | $ | 9,021,651 | $ | 8,342,883 | $ | 9,101,052 | $ | 7,792,579 | |||||||||||||||||||
| Return on average assets adjusted for non-core items | 1.30 | % | 1.33 | % | 1.47 | % | 1.31 | % | 1.53 | % | |||||||||||||||||||
(a) Tax effect is calculated using a 21% statutory federal corporate income tax rate.
| For the Three Months Ended | Six Months Ended | |||||||||||||||||||||||||
| June 30, | March 31, | June 30, | June 30, | |||||||||||||||||||||||
| (Dollars in thousands) | 2024 | 2024 | 2023 | 2024 | 2023 | |||||||||||||||||||||
| Annualized net income excluding amortization of other intangible assets: | ||||||||||||||||||||||||||
| Net income | $ | 29,007 | $ | 29,584 | $ | 21,096 | $ | 58,591 | $ | 47,656 | ||||||||||||||||
| Add: amortization of other intangible assets | 2,787 | 2,788 | 2,800 | 5,575 | 4,671 | |||||||||||||||||||||
| Less: tax effect of amortization of other intangible assets (a) | 585 | 585 | 588 | 1,171 | 981 | |||||||||||||||||||||
| Net income excluding amortization of other intangible assets | $ | 31,209 | $ | 31,787 | $ | 23,308 | $ | 62,995 | $ | 51,346 | ||||||||||||||||
| Days in the period | 91 | 91 | 91 | 182 | 181 | |||||||||||||||||||||
| Days in the year | 366 | 366 | 365 | 366 | 365 | |||||||||||||||||||||
| Annualized net income | $ | 116,666 | $ | 118,986 | $ | 84,616 | $ | 117,826 | $ | 96,102 | ||||||||||||||||
| Annualized net income excluding amortization of other intangible assets | $ | 125,522 | $ | 127,847 | $ | 93,488 | $ | 126,682 | $ | 103,543 | ||||||||||||||||
| Average tangible equity: | ||||||||||||||||||||||||||
| Total average stockholders' equity | $ | 1,061,454 | $ | 1,052,781 | $ | 951,438 | $ | 1,057,117 | $ | 876,866 | ||||||||||||||||
| Less: average goodwill and other intangible assets | 407,864 | 410,719 | 387,055 | 409,292 | 356,470 | |||||||||||||||||||||
| Average tangible equity | $ | 653,590 | $ | 642,062 | $ | 564,383 | $ | 647,825 | $ | 520,396 | ||||||||||||||||
| Return on average stockholders' equity ratio: | ||||||||||||||||||||||||||
| Annualized net income | $ | 116,666 | $ | 118,986 | $ | 84,616 | $ | 117,826 | $ | 96,102 | ||||||||||||||||
| Average stockholders' equity | $ | 1,061,454 | $ | 1,052,781 | $ | 951,438 | $ | 1,057,117 | $ | 876,866 | ||||||||||||||||
| Return on average stockholders' equity | 10.99 | % | 11.30 | % | 8.89 | % | 11.15 | % | 10.96 | % | ||||||||||||||||
| Return on average tangible equity ratio: | ||||||||||||||||||||||||||
| Annualized net income excluding amortization of other intangible assets | $ | 125,522 | $ | 127,847 | $ | 93,488 | $ | 126,682 | $ | 103,543 | ||||||||||||||||
| Average tangible equity | $ | 653,590 | $ | 642,062 | $ | 564,383 | $ | 647,825 | $ | 520,396 | ||||||||||||||||
| Return on average tangible equity | 19.21 | % | 19.91 | % | 16.56 | % | 19.55 | % | 19.90 | % | ||||||||||||||||
(a) Tax effect is calculated using a 21% statutory federal corporate income tax rate.
Item 9.01 Financial Statements and Exhibits
a) - c)
Not applicable
d) Exhibits
See Index to Exhibits below.
INDEX TO EXHIBITS
| Exhibit Number | Description | ||||||||||
| Transcript of conference call conducted by management of Peoples Bancorp Inc. on July 23, 2024 to discuss results of operations for the quarter and six months ended June 30, 2024 | |||||||||||
| 104 | Cover Page Interactive Data File (the cover page XBRL tags are embedded within the Inline XBRL document) | ||||||||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| PEOPLES BANCORP INC. | ||||||||||||||
| Date: | July 26, 2024 | By:/s/ | KATHRYN BAILEY | |||||||||||
| Kathryn Bailey | ||||||||||||||
| Executive Vice President, Chief Financial Officer and Treasurer | ||||||||||||||