MARIETTA, Ohio, Oct. 24, 2017 /PRNewswire/ -- Peoples
Bancorp Inc. ("Peoples") (NASDAQ: PEBO) today announced results for
the quarter ended September 30, 2017. Net income totaled
$10.9 million for the third quarter
of 2017, representing earnings per diluted common share of
$0.60. Earnings per diluted
common share were positively impacted by $0.07 due to the gain on bank equity investment
securities of $1.8 million recognized
during the third quarter of 2017. In comparison, earnings per
diluted common share were $0.53 for
the second quarter of 2017 and $0.43
for the third quarter of 2016.
"We are pleased to announce our third consecutive quarter of
record quarterly net income. Our key metrics, including
earnings per share, efficiency ratio, return on average assets and
return on average stockholders' equity, improved as we continued to
focus our attention on strengthening our core business," said
Chuck Sulerzyski, President and
Chief Executive Officer. "Our efficiency ratio was the lowest
it has been in seven years. We are being disciplined in our
approach to growing revenues faster than expenses, and we believe
we are poised to continue to provide strong shareholder returns as
we move into the fourth quarter of 2017 and into 2018."
"We are delighted to continue to complement our current
footprint with the agreement to acquire ASB Financial Corp.,"
continued Sulerzyski. "We believe this acquisition will allow
us to expand further into the Cincinnati market and positions us for future
growth opportunities, including the addition of their successful
mortgage origination division, which should double our mortgage
origination capability."
Peoples entered into a merger agreement with ASB Financial Corp
("ASB") on October 23, 2017 that
calls for ASB to merge into Peoples and for ASB's wholly-owned
subsidiary, American Savings Bank, fsb, which operates 6 full
service bank branches and two loan production offices located in
southern Ohio and northern
Kentucky, to merge into Peoples
Bank. This transaction is expected to close during the second
quarter of 2018, subject to the satisfaction of customary closing
conditions, including regulatory approvals and the approval of the
shareholders of ASB. As of June 30,
2017, ASB had approximately $293.6
million in total assets, which included approximately
$241.5 million in net loans, and
approximately $210.4 million in total
deposits. Under the terms of the ASB agreement, shareholders
of ASB can elect to receive either 0.592 shares of Peoples' common
stock for each share of ASB common stock or $20 cash per share with a limit of 15% of the
merger consideration being paid in cash.
Statement of Operations Highlights:
- Net interest income grew 4% compared to the second
quarter of 2017, and 12% compared to the third quarter of
2016.
-
- Net interest margin was 3.67% for the third quarter of 2017,
compared to 3.62% for the linked quarter and 3.54% for the third
quarter of 2016.
- Provision for loan losses was $1.1
million for the third quarter of 2017 and was driven by loan
growth experienced during the quarter.
- Total fee-based income during the third quarter of 2017
declined by 7% compared to both the linked quarter and the third
quarter of 2016.
-
- The decline compared to the linked quarter was largely due to
the gain recognized on the sale of the government guaranteed
portion of a loan for $437,000 in the
second quarter of 2017. Lower commercial loan swap fees
contributed to the decline compared to both the linked quarter and
third quarter of 2016.
- Total non-interest expense was relatively flat for the
third quarter of 2017 compared to the linked quarter, and was down
1% compared to the third quarter of 2016.
-
- The efficiency ratio continued to improve and was 60.7% for the
third quarter of 2017, compared to 61.2% for the second quarter of
2017 and 64.3% for the third quarter of 2016.
- A net gain on investment securities of $1.9 million was recognized during the third
quarter of 2017.
-
- Certain bank equity investment securities were sold during the
third quarter of 2017 as a result of a high amount of appreciation
on these securities.
Balance Sheet Highlights:
- Period-end total loan balances at September 30, 2017 grew 6%, on an annualized
basis, compared to June 30, 2017 and
7% compared to September 30,
2016.
-
- Indirect consumer loans at September 30,
2017 grew $29.7 million, or
39% annualized, compared to June 30,
2017, and increased 46% compared to September 30, 2016.
- Commercial loan balances grew $17.2
million, or 5% annualized, at September 30, 2017 compared to June 30, 2017 and increased 8% compared to
September 30, 2016.
- Asset quality improved during the quarter.
-
- Nonperforming assets decreased to 0.86% of total loans and
other real estate owned ("OREO") at September 30, 2017 compared to 0.88% at
June 30, 2017.
- Nonaccrual loans at September 30,
2017 decreased $0.7 million,
or 4%, compared to June 30,
2017.
- Classified loans, which are those categorized as substandard or
doubtful, decreased $11.4 million, or
22%, at September 30, 2017 compared
to June 30, 2017.
- Criticized loans, which are those categorized as special
mention, substandard or doubtful, decreased $13.2 million, or 12%, at September 30, 2017 compared to June 30, 2017.
- Period-end total deposit balances at September 30, 2017 decreased $12.5 million compared to June 30, 2017.
-
- Total demand deposit balances were 42% of total deposits at
September 30, 2017, compared to 40%
at June 30, 2017.
Net Interest Income:
Net interest income was
$29.2 million for the third quarter
of 2017, a 4% increase compared to the linked quarter and a 12%
increase over the third quarter of 2016. Net interest margin
increased to 3.67% for the third quarter of 2017, compared to 3.62%
for the second quarter of 2017 and 3.54% for the third quarter of
2016. For the first nine months of 2017, net interest income
grew 8% compared to 2016, and net interest margin improved 6 basis
points to 3.61%. The increase in net interest income compared
to all prior periods has largely been attributable to loan growth,
and increasing interest rates. In addition, during the third
quarter of 2017, Peoples received proceeds of $611,000 on an investment security that had been
previously written down due to an
other-than-temporary-impairment. These proceeds added 8 basis
points to the net interest margin during the third quarter of
2017.
The accretion income, net of amortization expense, from
acquisitions was $816,000 for the
third quarter of 2017, compared to $735,000 for the second quarter of 2017 and
$801,000 for the third quarter of
2016, which added 10 basis points to the net interest margin during
the third and second quarters of 2017, and 11 basis points during
the third quarter of 2016. During the third quarter of 2017,
the annual re-estimation of expected cash flows for purchased
credit impaired loans was completed and resulted in adjustments to
accretion income, which had a positive impact for the quarter.
Provision for Loan Losses:
The provision for loan
losses was $1.1 million for the third
quarter of 2017, compared to $0.9
million for the second quarter of 2017 and $1.1 million for the third quarter of 2016.
The slight increase in provision for loan losses recorded during
the third quarter of 2017 compared to the linked quarter was
reflective of the growth in loan balances during the quarter, and
was partially offset by improved asset quality metrics. For
the first nine months of 2017, provision for loan losses was
$2.7 million, compared to
$2.8 million for the first nine
months of 2016.
Total Fee-based Income:
Total fee-based income for
the third quarter of 2017 declined 7%, compared to both the linked
quarter and third quarter of 2016. The decrease compared to
the second quarter of 2017 was largely due to the gain recognized
on the sale of the government guaranteed portion of a loan for
$437,000 in the second quarter of
2017. Commercial loan swap fees were impacted by lower
customer demand and declined $575,000
for the third quarter of 2017 compared to the linked quarter, and
were down $493,000 from the third
quarter of 2016. Service charges on deposit accounts declined
$426,000, or 15%, compared to the
third quarter of 2016, with the decline mostly due to lower
overdraft fees.
For the first nine months of 2017, total fee-based income grew
$575,000, or 1%, compared to
2016. The increase compared to the first nine months of 2016
was mainly the result of a $647,000
increase in trust and investment income, a $560,000 increase in bank owned life insurance
income and a $537,000 increase in
mortgage banking income. These increases were partially
offset by declines in service charges on deposit accounts of
$869,000 and electronic banking
income of $175,000.
Total Non-interest Expense:
Total non-interest
expense for the third quarter of 2017 was $26.6 million, compared to $26.7 million for the second quarter of 2017 and
$26.8 million for the third quarter
of 2016. The decline compared to the linked quarter was due
to decreased professional fees, and electronic banking expense,
which were partially offset by higher marketing expense. The
decrease compared to the third quarter of 2016 was due to the
system upgrade costs recognized during the third quarter of 2016,
coupled with lower professional fees and electronic banking
expense. These reductions were partially offset by increases
in salaries and employee benefit costs and data processing and
software expense.
For the first nine months of 2017, total non-interest expense
increased $940,000, or 1%. The
increase was primarily due to higher salaries and employee benefit
costs, and was related to incentive compensation resulting from
improved financial results of the company during the first nine
months of 2017 compared to 2016. This increase was partially
offset by reductions in professional fees, communication expense
and amortization of other intangible assets. During the first
nine months of 2016, Peoples recognized $513,000 of system upgrade costs.
The efficiency ratio for the third quarter of 2017 was 60.7%,
compared to 61.2% for the linked quarter and 64.3% for the third
quarter of 2016. For the first nine months of 2017, the
efficiency ratio was 62.2%, compared to 64.6% for the first nine
months of 2016. Excluding the system upgrade costs, the
efficiency ratio during the third quarter of 2016 was 63.3%, and
was 64.1% for the first nine months of 2016. Higher net
interest income was the primary driver of the decline in the
efficiency ratio for the third quarter and first nine months of
2017 compared to the linked quarter, third quarter of 2016, and
first nine months of 2016.
Loans:
Period-end total loan balances at September 30, 2017 increased $32.2 million, or 6% annualized, compared to
June 30, 2017. Indirect
consumer lending continued to be a key component of loan growth, as
balances increased $29.7 million, or
39% annualized, during the quarter. The growth in indirect
consumer lending included continued diversification in the
portfolio beyond automobile loans, including loans for recreational
vehicles and motorcycles. Commercial loans grew $17.2 million, or 5% annualized, with commercial
and industrial loans growing $12.5
million, or 12% annualized, during the quarter.
Compared to December 31, 2016,
period-end loan balances at September 30,
2017 increased $102.1 million,
or 5% annualized. Indirect consumer loan balances
increased $83 million, or 33%
annualized. Commercial real estate loans grew $36.4 million, or 6% annualized, while commercial
and industrial loans grew $21.6
million, or 7% annualized, for the first nine months of
2017.
At September 30, 2017, period-end
loan balances increased $157.8
million, or 7%, compared to September
30, 2016. The increase was primarily the result of
commercial loan growth of $101.1
million, or 8%, which was almost evenly split between
commercial real estate and commercial and industrial loan
balances. From a bank regulatory perspective,
non-owner-occupied commercial real estate loan balances as of
September 30, 2017 remained well
below the guidance from the regulators of financial institutions of
300% of total risk-based capital. The ratio at September 30, 2017 of non-owner-occupied
commercial real estate loans to total risk-based capital was 161%,
compared to 147% as of September 30,
2016. Indirect consumer lending also contributed loan
growth of $105.6 million, or 46%,
compared to September 30,
2016. At September 30,
2017, indirect consumer loan balances comprised 14% of the
total loan portfolio, compared to 13% at June 30, 2017, and 11% at both December 31, 2016 and September 30, 2016.
Quarterly average gross loan balances increased $46.2 million, or 8% annualized, compared to the
linked quarter. Commercial loans provided $30.6 million of growth compared to June 30, 2017, while consumer indirect loans grew
$28.2 million. Quarterly
average gross loan balances for the three months ended September 30, 2017 increased 9% compared to the
same period in 2016, with commercial loan growth of $128.3 million, and consumer indirect loan growth
of $103.8 million. For the nine
months ended September 30, 2017,
average gross loan balances increased 9% compared to the same
period in 2016, with the growth being almost evenly divided between
commercial loans and consumer indirect loans.
Asset Quality:
Asset quality metrics improved during
the third quarter of 2017. Nonperforming assets as a percent
of total loans and OREO decreased to 0.86% at September 30, 2017, compared to 0.88% at
June 30, 2017 and 1.11% at
September 30, 2016. At
September 30, 2017, nonperforming
assets declined 17% from September 30,
2016.
Annualized net charge-offs were 0.16% of average gross loans
during the third quarter of 2017, compared to 0.11% in the linked
quarter and 0.14% in the third quarter of 2016. The higher
net charge-off rate during the third quarter of 2017 was largely
due to increased net charge-offs of residential real estate,
coupled with higher deposit account overdraft charge-offs.
For the first nine months of 2017, annualized net charge-offs were
0.12%, compared to 0.09% for the first nine months of 2016.
The increase compared to the first nine months of 2016 was mostly
due to net recoveries on commercial real estate loans that were
received in 2016.
Classified loans, which are those categorized as substandard or
doubtful, decreased $11.8 million, or
22%, compared to June 30, 2017 and
$12.5 million, or 23%, compared to
September 30, 2016. As a
percent of total loans, classified loans were 1.77% at September 30, 2017, compared to 2.31% at
June 30, 2017 and 2.48% at
September 30, 2016. Criticized
loans, which are those categorized as special mention, substandard
or doubtful, declined $14.8 million,
or 13%, compared to June 30, 2017 and
decreased $2.6 million, or 3%,
compared to September 30, 2016.
As a percent of total loans, criticized loans were 4.15% at
June 30, 2017, compared to 4.86% at
June 30, 2017 and 4.58% at
September 30, 2016. Compared to
the second quarter of 2017, the reduction in classified and
criticized loans was mostly due to a large commercial loan
relationship that was upgraded during the third quarter of
2017.
At September 30, 2017, the
allowance for loan losses increased to $19.0
million, compared to $18.8
million at June 30, 2017, and
$18.2 million at September 30, 2016. The ratio of the
allowance for loan losses as a percent of total loans was 0.82% at
both September 30, 2017 and
June 30, 2017, compared to 0.84% at
September 30, 2016. The ratio
includes total acquired loans of $438.4
million and allowance for acquired loan losses of
$0.1 million.
Deposits:
In the third quarter of 2017, Peoples
announced a new consumer checking account product suite to its
customers. The migration of the customer accounts began late
in the third quarter of 2017 and is expected to be completed early
in the fourth quarter, with the effect being a shift of some
accounts from non-interest-bearing to interest-bearing demand
deposit accounts. This migration impact is reflected in the
comparisons set forth below.
As of September 30, 2017,
period-end deposits declined $12.5
million compared to June 30,
2017, and increased $155.0
million, or 6%, compared to December
31, 2016. Compared to June 30,
2017, period-end deposits at September 30, 2017 declined largely due to
reductions of $17.9 million in
brokered certificates of deposit, while a large portion of the
decreases in non-interest-bearing deposits, money market accounts,
governmental deposits and retail certificates of deposit were
offset by increases in interest-bearing demand deposits.
Period-end deposits increased $89.2
million, or 3%, compared to September
30, 2016. Most of this increase was due to growth of
$113.8 million in interest-bearing
demand deposits, which was partially offset by a decline of
$20.6 million in non-interest-bearing
deposits. In addition, declines in money market accounts more
than offset higher total certificates of deposit.
Average deposits for the third quarter of 2017 were relatively
flat, increasing $3.9 million
compared to the linked quarter, with increases of
$25.7 million in interest-bearing
demand deposits and $8.2 million in
governmental deposits being mostly offset by reductions in all
other deposit categories. Compared to the third quarter of
2016, average deposits increased $118.1
million, or 5%, with interest-bearing deposits increasing
$71.4 million and
non-interest-bearing deposits increasing $46.7 million. The increase in
interest-bearing deposits was due primarily to increases in
brokered certificates of deposit and interest-bearing demand
accounts, which were somewhat offset by a decrease in retail
certificates of deposit.
For the first nine months of 2017, average deposits increased
$78.3 million, or 3%, compared to the
first nine months of 2016. The increase was primarily due to
an increase of $46.1 million, or 6%,
in non-interest bearing deposits, coupled with an increase of
$32.2 million in interest-bearing
deposits.
Total demand deposit accounts comprised 42% of total deposits at
September 30, 2017, compared to 40%
at June 30, 2017 and December 31, 2016, and 39% at September 30, 2016.
Stockholders' Equity:
At September 30, 2017, the tier 1 risk-based capital
ratio was 13.60%, compared to 13.47% at June
30, 2017, 13.21% at December 31,
2016 and 13.34% at September
30, 2016. The total risk-based capital ratio was
14.49% at September 30, 2017,
compared to 14.40% at June 30, 2017,
14.11% at December 31, 2016 and
14.24% at September 30, 2016.
The improvement in these capital ratios compared to the linked
quarter was due mainly to increased earnings, which exceeded the
dividends declared and paid during the third quarter of 2017 by
$6.9 million.
Peoples Bancorp Inc. is a diversified financial services holding
company with $3.6 billion in total
assets, 76 locations, including 67 full-service bank branches, and
74 ATMs in Ohio, West Virginia and Kentucky. Peoples
makes available a complete line of banking, investment, insurance
and trust solutions through its subsidiaries - Peoples Bank and
Peoples Insurance Agency, LLC. 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 U.S.
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 2017 results of operations today at 11:00 a.m., Eastern Daylight Savings Time, with
members of Peoples' executive management participating.
Analysts, media and individual investors are invited to participate
in the conference call by calling (866) 890-9285. 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 and, if required, to 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.
Use of Non-GAAP Financial Measures:
This news release contains financial information and performance
measures determined by methods other than in accordance with
accounting principles generally accepted in the United States of America ("GAAP").
Management uses these "non-GAAP" financial measures in its analysis
of Peoples' performance and the efficiency of its operations.
Management believes that these non-GAAP financial measures provide
a greater understanding of ongoing operations and enhance
comparability of results with prior periods and peers. These
disclosures should not be viewed as substitutes for financial
measures determined in accordance with GAAP, nor are they
necessarily comparable to non-GAAP performance measures that may be
presented by other companies. Below is a listing of the non-GAAP
financial measures used in this news release:
- Core non-interest expenses are non-GAAP since they exclude the
impact of items such as costs associated with the system upgrade of
Peoples' core banking system, acquisition-related costs, pension
settlement charges, severance charges and legal settlement
charges.
- Efficiency ratio is calculated as total non-interest expense
(less amortization of other intangible assets) as a percentage of
fully tax-equivalent net interest income plus total fee-based
income. This measure is non-GAAP since it excludes
amortization of other intangible assets and all gains and/or losses
included in earnings (which are excluded from total fee-based
income), and uses fully tax-equivalent net interest income.
- Tangible assets, tangible equity and tangible book value per
common share measures are non-GAAP since they exclude the impact of
goodwill and other intangible assets acquired through acquisitions
on both total stockholders' equity and total assets.
- Pre-provision net revenue is defined as net interest income
plus total fee-based income minus total non-interest expense.
This measure is non-GAAP since it excludes the provision for
(recovery of) loan losses and all gains and/or losses included in
earnings.
- Return on tangible stockholders' equity is calculated as net
income (less after-tax impact of amortization of other intangible
assets) divided by tangible stockholders' equity. This
measure is non-GAAP since it excludes the after-tax impact of
amortization of other intangible assets from earnings and the
impact of goodwill and other intangible assets acquired through
acquisitions on total stockholders' equity.
A reconciliation of these non-GAAP financial measures to the
most directly comparable GAAP financial measures is included at the
end of this news release under the caption of "Non-GAAP Financial
Measures".
Important Information for Investors and Shareholders:
This news release 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 other
documents regarding the proposed transaction referenced in this
news release with the Securities and Exchange Commission ("SEC") to
register the shares of the 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 in advance of its special meeting of
shareholders to be held to consider the proposed
merger. Investors and security holders are urged to
read the proxy statement/prospectus and any other relevant
documents to be filed with the SEC in connection with the proposed
transaction because they contain important information about
Peoples, ASB and the proposed transaction. Investors and
security holders may obtain a free copy of these documents (when
available) through the website maintained by the SEC at
www.sec.gov. These documents may also be obtained, free of
charge, on Peoples' website at www.peoplesbancorp.com under the tab
"Investor Relations" or by contacting Peoples' Investor Relations
Department at: Peoples Bancorp Inc., 138 Putnam Street, PO Box 738,
Marietta, Ohio 45750, Attn:
Investor Relations.
Peoples and ASB and certain of their directors and executive
officers may be deemed to be participants in the solicitation of
proxies from the shareholders of ASB in connection with the
proposed merger. Information about the directors and
executive officers of Peoples is set forth in the proxy statement
for Peoples' 2017 annual meeting of shareholders, as filed with the
SEC on Schedule 14A on March 8,
2017. Additional information regarding the interests of those
participants and other persons who may be deemed participants in
the transaction may be obtained by reading the proxy
statement/prospectus regarding the proposed merger when it becomes
available. Free copies of this document may be obtained as
described in the preceding paragraph, when it becomes
available.
Safe Harbor Statement:
Certain statements made in this news release regarding Peoples'
financial condition, results of operations, plans, objectives,
future performance and business, 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 are identified by the
fact they are not historical facts and include words such as
"anticipate," "estimate," "may," "feel," "expect," "believe,"
"plan," "will," "would," "should," "could" and similar
expressions.
These forward-looking statements reflect management's current
expectations based on all information available to management and
its knowledge of Peoples' business and operations.
Additionally, Peoples' financial condition, results of operations,
plans, objectives, future performance and business are subject to
risks and uncertainties that may cause actual results to differ
materially. These factors include, but are not limited
to:
(1) the success, impact, and
timing of the implementation of Peoples' business strategies,
including the successful integration of acquisitions and the
expansion of consumer lending activity;
(2) competitive pressures among
financial institutions or from non-financial institutions which may
increase significantly, including product and pricing pressures,
changes to third-party relationships and revenues, and Peoples'
ability to attract, develop and retain qualified professionals;
(3) changes in the interest rate
environment due to economic conditions and/or the fiscal policies
of the United States ("U.S.")
government and the Board of Governors of the Federal Reserve System
(the "Federal Reserve Board"), which may adversely impact interest
rates, interest margins, loan demand and interest rate
sensitivity;
(4) uncertainty regarding the
nature, timing and effect of legislative or regulatory changes or
actions, promulgated and to be promulgated by governmental and
regulatory agencies in the State of
Ohio, the Federal Deposit Insurance Corporation, the Federal
Reserve Board and the Consumer Financial Protection Bureau, which
may subject Peoples, its subsidiaries, or one or more acquired
companies to a variety of new and more stringent legal and
regulatory requirements which adversely affect their respective
businesses, including in particular the rules and regulations
promulgated and to be promulgated under the Dodd-Frank Wall Street
Reform and Consumer Protection Act of 2010, and the Basel III
regulatory capital reform;
(5) changes in policy and other
regulatory and legal developments accompanying the current
presidential administration and uncertainty or speculation pending
the enactment of such changes;
(6) Peoples' ability to leverage
the core banking systems upgrade that occurred in the fourth
quarter of 2016 (including the related core operating systems, data
systems and products) without complications or difficulties that
may otherwise result in the loss of customers, operational problems
or one-time costs currently not anticipated to arise in connection
with implementing new features and functionality;
(7) local, regional, national and
international economic conditions and the impact these conditions
may have on Peoples, its customers and its counterparties, and
Peoples' assessment of the impact, which may be different than
anticipated;
(8) Peoples' ability to integrate
any future acquisitions which may be unsuccessful, or may be more
difficult, time-consuming or costly than expected;
(9) Peoples may issue equity
securities in connection with future acquisitions, which could
cause ownership and economic dilution to Peoples' current
shareholders;
(10) changes in prepayment speeds,
loan originations, levels of nonperforming assets, delinquent loans
and charge-offs, which may be less favorable than expected and
adversely impact the amount of interest income generated;
(11) adverse changes in the
economic conditions and/or activities, including, but not limited
to, continued economic uncertainty in the U.S., the European Union
(including the uncertainty surrounding the actions to be taken to
implement the referendum by British voters to exit the European
Union), Asia, and other areas,
which could decrease sales volumes, add volatility to the global
stock markets, and increase loan delinquencies and defaults;
(12) deterioration in the credit
quality of Peoples' loan portfolio, which may adversely impact the
provision for loan losses;
(13) changes in accounting
standards, policies, estimates or procedures which may adversely
affect Peoples' reported financial condition or results of
operations;
(14) Peoples' assumptions and
estimates used in applying critical accounting policies, which may
prove unreliable, inaccurate or not predictive of actual
results;
(15) adverse changes in the
conditions and trends in the financial markets, including political
developments, which may adversely affect the fair value of
securities within Peoples' investment portfolio, the interest rate
sensitivity of Peoples' consolidated balance sheet, and the income
generated by Peoples' trust and investment activities;
(16) Peoples' ability to receive
dividends from its subsidiaries;
(17) Peoples' ability to maintain
required capital levels and adequate sources of funding and
liquidity;
(18) the impact of minimum capital
thresholds established as a part of the implementation of Basel
III;
(19) the impact of larger or
similar sized financial institutions encountering problems, which
may adversely affect the banking industry and/or Peoples' business
generation and retention, funding and liquidity;
(20) the costs and effects of
regulatory and legal developments, including the outcome of
potential regulatory or other governmental inquiries and legal
proceedings and results of regulatory examinations;
(21) Peoples' ability to secure
confidential information through the use of computer systems and
telecommunications networks, including those of Peoples'
third-party vendors and other service providers, may prove
inadequate, which could adversely affect customer confidence in
Peoples and/or result in Peoples incurring a financial loss;
(22) ability to anticipate and
respond to technological changes which can impact Peoples' ability
to respond to customer needs and meet competitive demands;
(23) changes in consumer spending,
borrowing and saving habits, whether due to changes in business and
economic conditions, legislative or regulatory initiatives, or
other factors, which may be different than anticipated;
(24) the overall adequacy of
Peoples' risk management program;
(25) the impact on Peoples'
businesses, as well as on the risks described above, of various
domestic or international widespread natural or other disasters,
pandemics, cyber attacks, civil unrest, military or terrorist
activities or international conflicts;
(26) significant changes in the
tax laws, which may adversely affect the fair values of deferred
tax assets and obligations of states and political subdivisions
held in Peoples' investment securities portfolio; and
(27) 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
(the "SEC"), including those risk factors included in the
disclosures under the heading "ITEM 1A. RISK FACTORS" of Peoples'
Annual Report on Form 10-K for the fiscal year ended
December 31, 2016.
Peoples encourages readers of this news release to understand
forward-looking statements to be strategic objectives rather than
absolute targets of future performance. 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 legal requirements. 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.
As required by U.S. GAAP, Peoples is required to evaluate the
impact of subsequent events through the issuance date of its
September 30, 2017 consolidated financial statements as part
of its Quarterly Report on Form 10-Q to be filed with the
SEC. Accordingly, subsequent events could occur that may
cause Peoples to update its critical accounting estimates and to
revise its financial information from that which is contained in
this news release.
PER COMMON SHARE
DATA AND SELECTED RATIOS
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
30,
|
|
June
30,
|
|
September
30,
|
|
September
30,
|
|
2017
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
PER COMMON
SHARE:
|
|
|
|
|
|
|
|
|
|
Earnings per common
share:
|
|
|
|
|
|
|
|
|
|
Basic
|
$
|
0.60
|
|
|
$
|
0.54
|
|
|
$
|
0.43
|
|
|
$
|
1.62
|
|
|
$
|
1.31
|
|
Diluted
|
0.60
|
|
|
0.53
|
|
|
0.43
|
|
|
1.61
|
|
|
1.31
|
|
Cash dividends
declared per common share
|
0.22
|
|
|
0.20
|
|
|
0.16
|
|
|
0.62
|
|
|
0.47
|
|
Book value per common
share
|
25.02
|
|
|
24.69
|
|
|
24.22
|
|
|
25.02
|
|
|
24.22
|
|
Tangible book value
per common share (a)
|
17.15
|
|
|
16.78
|
|
|
16.14
|
|
|
17.15
|
|
|
16.14
|
|
Closing stock price
at end of period
|
$
|
33.59
|
|
|
$
|
32.13
|
|
|
$
|
24.59
|
|
|
$
|
33.59
|
|
|
$
|
24.59
|
|
|
|
|
|
|
|
|
|
|
|
SELECTED
RATIOS:
|
|
|
|
|
|
|
|
|
|
Return on average
stockholders' equity (b)
|
9.47
|
%
|
|
8.76
|
%
|
|
7.07
|
%
|
|
8.80
|
%
|
|
7.36
|
%
|
Return on average
tangible stockholders' equity (b) (c)
|
14.58
|
%
|
|
13.71
|
%
|
|
11.54
|
%
|
|
13.77
|
%
|
|
12.17
|
%
|
Return on average
assets (b)
|
1.22
|
%
|
|
1.12
|
%
|
|
0.93
|
%
|
|
1.13
|
%
|
|
0.96
|
%
|
Efficiency ratio
(d)
|
60.74
|
%
|
|
61.19
|
%
|
|
64.33
|
%
|
|
62.24
|
%
|
|
64.56
|
%
|
Pre-provision net
revenue to total average assets (b)(e)
|
1.71
|
%
|
|
1.72
|
%
|
|
1.53
|
%
|
|
1.65
|
%
|
|
1.52
|
%
|
Net interest margin
(b)(f)
|
3.67
|
%
|
|
3.62
|
%
|
|
3.54
|
%
|
|
3.61
|
%
|
|
3.55
|
%
|
Dividend payout ratio
(g)
|
36.90
|
%
|
|
37.32
|
%
|
|
37.37
|
%
|
|
38.34
|
%
|
|
36.06
|
%
|
|
|
(a)
|
This amount
represents a non-GAAP financial measure since it excludes the
balance sheet impact of goodwill and other intangible assets
acquired through acquisitions on stockholders' equity.
Additional information regarding the calculation of this ratio is
included at the end of this news release.
|
(b)
|
Ratios are presented
on an annualized basis.
|
(c)
|
This amount
represents a non-GAAP financial measure since it excludes the
after-tax impact of amortization of other intangible assets from
earnings and it excludes the balance sheet impact of goodwill and
other intangible assets acquired through acquisitions on
stockholders' equity. Additional information regarding the
calculation of this ratio is included at the end of this news
release.
|
(d)
|
Total non-interest
expense (less amortization of other intangible assets) as a
percentage of fully tax-equivalent net interest income plus total
fee-based income. This amount represents a non-GAAP financial
measure since it excludes amortization of other intangible assets,
and all gains and/or losses included in earnings (which are
excluded from total fee-based income), and uses fully
tax-equivalent net interest income. Additional information
regarding the calculation of this ratio is included at the end of
this news release.
|
(e)
|
This ratio represents
a non-GAAP financial measure since it excludes the provision for
(recovery of) loan losses and all gains and/or losses included in
earnings. This measure is a key metric used by federal bank
regulatory agencies in their evaluation of capital adequacy for
financial institutions. Additional information regarding the
calculation of this ratio is included at the end of this news
release.
|
(f)
|
Information presented
on a fully tax-equivalent basis.
|
(g)
|
Ratios are calculated
based on dividends declared during the period divided by earnings
for the period.
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
30,
|
|
June
30,
|
|
September
30,
|
|
September
30,
|
(in
$000's)
|
2017
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Total interest
income
|
$
|
32,728
|
|
|
$
|
31,208
|
|
|
$
|
28,730
|
|
|
$
|
93,753
|
|
|
$
|
86,094
|
|
Total interest
expense
|
3,508
|
|
|
3,118
|
|
|
2,607
|
|
|
9,498
|
|
|
7,896
|
|
Net interest
income
|
29,220
|
|
|
28,090
|
|
|
26,123
|
|
|
84,255
|
|
|
78,198
|
|
Provision for loan
losses
|
1,086
|
|
|
947
|
|
|
1,146
|
|
|
2,657
|
|
|
2,828
|
|
Net interest income
after provision for loan losses
|
28,134
|
|
|
27,143
|
|
|
24,977
|
|
|
81,598
|
|
|
75,370
|
|
|
|
|
|
|
|
|
|
|
|
Net gain (loss) on
investment securities
|
1,861
|
|
|
18
|
|
|
(1)
|
|
|
2,219
|
|
|
862
|
|
Loss on debt
extinguishment
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(707)
|
|
Net gain (loss) on
loans held-for-sale and other real estate owned
|
13
|
|
|
(24)
|
|
|
—
|
|
|
(11)
|
|
|
(1)
|
|
Net (loss) gain on
other assets
|
(38)
|
|
|
133
|
|
|
(224)
|
|
|
92
|
|
|
(316)
|
|
|
|
|
|
|
|
|
|
|
|
Fee-based
income:
|
|
|
|
|
|
|
|
|
|
Insurance
income
|
3,345
|
|
|
3,414
|
|
|
3,137
|
|
|
10,861
|
|
|
10,934
|
|
Trust and investment
income
|
2,838
|
|
|
2,977
|
|
|
2,692
|
|
|
8,497
|
|
|
7,850
|
|
Electronic banking
income
|
2,544
|
|
|
2,587
|
|
|
2,765
|
|
|
7,692
|
|
|
7,867
|
|
Deposit account
service charges
|
2,407
|
|
|
2,294
|
|
|
2,833
|
|
|
7,130
|
|
|
7,999
|
|
Mortgage banking
income
|
535
|
|
|
467
|
|
|
427
|
|
|
1,389
|
|
|
852
|
|
Bank owned life
insurance income
|
482
|
|
|
496
|
|
|
491
|
|
|
1,471
|
|
|
911
|
|
Commercial loan swap
fees
|
76
|
|
|
651
|
|
|
569
|
|
|
995
|
|
|
997
|
|
Other
income
|
383
|
|
|
704
|
|
|
624
|
|
|
1,499
|
|
|
1,549
|
|
Total
fee-based income
|
12,610
|
|
|
13,590
|
|
|
13,538
|
|
|
39,534
|
|
|
38,959
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest
expense:
|
|
|
|
|
|
|
|
|
|
Salaries and employee
benefit costs
|
15,141
|
|
|
15,049
|
|
|
14,584
|
|
|
45,686
|
|
|
42,881
|
|
Net occupancy and
equipment expense
|
2,619
|
|
|
2,648
|
|
|
2,768
|
|
|
7,980
|
|
|
8,155
|
|
Electronic banking
expense
|
1,448
|
|
|
1,525
|
|
|
1,650
|
|
|
4,487
|
|
|
4,568
|
|
Professional
fees
|
1,393
|
|
|
1,529
|
|
|
1,661
|
|
|
4,532
|
|
|
5,243
|
|
Data processing and
software expense
|
1,092
|
|
|
1,096
|
|
|
741
|
|
|
3,330
|
|
|
2,503
|
|
Amortization of other
intangible assets
|
869
|
|
|
871
|
|
|
1,008
|
|
|
2,603
|
|
|
3,023
|
|
Franchise tax
expense
|
583
|
|
|
584
|
|
|
529
|
|
|
1,750
|
|
|
1,550
|
|
Marketing
expense
|
488
|
|
|
354
|
|
|
380
|
|
|
1,122
|
|
|
1,192
|
|
FDIC insurance
expense
|
449
|
|
|
457
|
|
|
549
|
|
|
1,339
|
|
|
1,706
|
|
Communication
expense
|
334
|
|
|
390
|
|
|
518
|
|
|
1,134
|
|
|
1,730
|
|
Foreclosed real
estate and other loan expenses
|
214
|
|
|
179
|
|
|
189
|
|
|
589
|
|
|
540
|
|
Other non-interest
expense
|
1,928
|
|
|
1,998
|
|
|
2,265
|
|
|
6,017
|
|
|
6,538
|
|
Total
non-interest expense
|
26,558
|
|
|
26,680
|
|
|
26,842
|
|
|
80,569
|
|
|
79,629
|
|
Income before
income taxes
|
16,022
|
|
|
14,180
|
|
|
11,448
|
|
|
42,863
|
|
|
34,538
|
|
Income tax
expense
|
5,127
|
|
|
4,414
|
|
|
3,656
|
|
|
13,393
|
|
|
10,789
|
|
Net income
|
$
|
10,895
|
|
|
$
|
9,766
|
|
|
$
|
7,792
|
|
|
$
|
29,470
|
|
|
$
|
23,749
|
|
|
|
|
|
|
|
|
|
|
|
PER SHARE
DATA:
|
|
|
|
|
|
|
|
|
|
Earnings per common
share – Basic
|
$
|
0.60
|
|
|
$
|
0.54
|
|
|
$
|
0.43
|
|
|
$
|
1.62
|
|
|
$
|
1.31
|
|
Earnings per common
share – Diluted
|
$
|
0.60
|
|
|
$
|
0.53
|
|
|
$
|
0.43
|
|
|
$
|
1.61
|
|
|
$
|
1.31
|
|
Cash dividends
declared per common share
|
$
|
0.22
|
|
|
$
|
0.20
|
|
|
$
|
0.16
|
|
|
$
|
0.62
|
|
|
$
|
0.47
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average
common shares outstanding – Basic
|
18,056,202
|
|
|
18,044,574
|
|
|
17,993,443
|
|
|
18,043,692
|
|
|
18,015,249
|
|
Weighted-average
common shares outstanding – Diluted
|
18,213,533
|
|
|
18,203,752
|
|
|
18,110,710
|
|
|
18,199,959
|
|
|
18,123,660
|
|
Actual common shares
outstanding (end of period)
|
18,281,194
|
|
|
18,279,036
|
|
|
18,195,986
|
|
|
18,281,194
|
|
|
18,195,986
|
|
CONSOLIDATED
BALANCE SHEETS
|
|
|
September
30,
|
|
December
31,
|
(in
$000's)
|
2017
|
|
2016
|
|
|
|
|
Assets
|
|
|
|
Cash and cash
equivalents:
|
|
|
|
Cash and due
from banks
|
$
|
53,585
|
|
|
$
|
58,129
|
|
Interest-bearing deposits in other banks
|
16,458
|
|
|
8,017
|
|
Total cash and cash equivalents
|
70,043
|
|
|
66,146
|
|
|
|
|
|
Available-for-sale
investment securities, at fair value (amortized cost of
|
|
|
|
$792,810 at
September 30, 2017 and $777,017 at December 31, 2016)
|
797,021
|
|
|
777,940
|
|
Held-to-maturity
investment securities, at amortized cost (fair value of
|
|
|
|
$42,808 at
September 30, 2017 and $43,227 at December 31, 2016)
|
42,163
|
|
|
43,144
|
|
Other investment
securities, at cost
|
38,371
|
|
|
38,371
|
|
Total investment securities
|
877,555
|
|
|
859,455
|
|
|
|
|
|
Loans, net of
deferred fees and costs
|
2,327,035
|
|
|
2,224,936
|
|
Allowance for loan
losses
|
(18,992)
|
|
|
(18,429)
|
|
Net loans
|
2,308,043
|
|
|
2,206,507
|
|
|
|
|
|
Loans held for
sale
|
3,653
|
|
|
4,022
|
|
Bank premises and
equipment, net of accumulated depreciation
|
51,777
|
|
|
53,616
|
|
Bank owned life
insurance
|
61,696
|
|
|
60,225
|
|
Goodwill
|
132,631
|
|
|
132,631
|
|
Other intangible
assets
|
11,228
|
|
|
13,387
|
|
Other
assets
|
35,786
|
|
|
36,359
|
|
Total assets
|
$
|
3,552,412
|
|
|
$
|
3,432,348
|
|
|
|
|
|
Liabilities
|
|
|
|
Deposits:
|
|
|
|
Non-interest-bearing
deposits
|
$
|
724,846
|
|
|
$
|
734,421
|
|
Interest-bearing
deposits
|
1,939,836
|
|
|
1,775,301
|
|
Total deposits
|
2,664,682
|
|
|
2,509,722
|
|
|
|
|
|
Short-term
borrowings
|
193,717
|
|
|
305,607
|
|
Long-term
borrowings
|
195,890
|
|
|
145,155
|
|
Accrued expenses and
other liabilities
|
40,737
|
|
|
36,603
|
|
Total liabilities
|
3,095,026
|
|
|
2,997,087
|
|
|
|
|
|
Stockholders'
Equity
|
|
|
|
Preferred
stock, no par value, 50,000 shares authorized, no shares
issued
at
September 30, 2017 and December 31, 2016
|
—
|
|
|
—
|
|
Common stock, no par
value, 24,000,000 shares authorized, 18,948,358 shares
issued
at September 30, 2017 and 18,939,091 shares issued at
December
31, 2016, including shares in treasury
|
344,831
|
|
|
344,404
|
|
Retained
earnings
|
128,465
|
|
|
110,294
|
|
Accumulated other
comprehensive income (loss), net of deferred income
taxes
|
51
|
|
|
(1,554)
|
|
Treasury stock, at
cost, 703,530 shares at September 30, 2017 and
795,758
shares at December 31, 2016
|
(15,961)
|
|
|
(17,883)
|
|
Total stockholders' equity
|
457,386
|
|
|
435,261
|
|
Total liabilities and stockholders' equity
|
$
|
3,552,412
|
|
|
$
|
3,432,348
|
|
|
|
|
|
SELECTED FINANCIAL
INFORMATION
|
|
|
September
30,
|
June
30,
|
March
31,
|
December
31,
|
September
30,
|
(in $000's, end of
period)
|
2017
|
2017
|
2017
|
2016
|
2016
|
Loan
Portfolio
|
|
|
|
|
|
Commercial real
estate, construction
|
$
|
119,752
|
|
$
|
112,169
|
|
$
|
103,317
|
|
$
|
94,726
|
|
$
|
81,080
|
|
Commercial real
estate, other
|
747,413
|
|
750,219
|
|
730,055
|
|
736,023
|
|
728,878
|
|
Commercial and
industrial
|
443,930
|
|
431,473
|
|
428,737
|
|
422,339
|
|
400,042
|
|
Residential real
estate
|
499,044
|
|
512,887
|
|
524,212
|
|
535,925
|
|
545,161
|
|
Home equity lines of
credit
|
110,787
|
|
111,710
|
|
110,028
|
|
111,492
|
|
111,196
|
|
Consumer,
indirect
|
335,844
|
|
306,113
|
|
283,762
|
|
252,832
|
|
230,286
|
|
Consumer,
other
|
69,758
|
|
69,267
|
|
68,670
|
|
70,519
|
|
71,491
|
|
Deposit account
overdrafts
|
507
|
|
521
|
|
721
|
|
1,080
|
|
1,074
|
|
Total loans
|
$
|
2,327,035
|
|
$
|
2,294,359
|
|
$
|
2,249,502
|
|
$
|
2,224,936
|
|
$
|
2,169,208
|
|
Total acquired loans
(a)
|
$
|
438,380
|
|
$
|
463,684
|
|
$
|
491,819
|
|
$
|
516,832
|
|
$
|
551,021
|
|
Total originated loans
|
$
|
1,888,655
|
|
$
|
1,830,675
|
|
$
|
1,757,683
|
|
$
|
1,708,104
|
|
$
|
1,618,187
|
|
Deposit
Balances
|
|
|
|
|
|
Non-interest-bearing
deposits (b)
|
$
|
724,846
|
|
$
|
772,061
|
|
$
|
785,047
|
|
$
|
734,421
|
|
$
|
745,468
|
|
Interest-bearing
deposits:
|
|
|
|
|
|
Interest-bearing demand accounts (b)
|
384,261
|
|
303,501
|
|
292,187
|
|
278,975
|
|
270,490
|
|
Retail
certificates of deposit (c)
|
343,122
|
|
352,758
|
|
353,918
|
|
360,464
|
|
390,568
|
|
Money market
deposit accounts
|
388,876
|
|
397,211
|
|
386,999
|
|
407,754
|
|
411,111
|
|
Governmental
deposit accounts
|
289,895
|
|
297,560
|
|
330,477
|
|
251,671
|
|
286,716
|
|
Savings
accounts
|
440,633
|
|
443,110
|
|
445,720
|
|
436,344
|
|
438,087
|
|
Brokered
certificates of deposit (c)
|
93,049
|
|
110,943
|
|
107,817
|
|
40,093
|
|
33,017
|
|
Total interest-bearing deposits
|
1,939,836
|
|
1,905,083
|
|
1,917,118
|
|
1,775,301
|
|
1,829,989
|
|
Total deposits
|
$
|
2,664,682
|
|
$
|
2,677,144
|
|
$
|
2,702,165
|
|
$
|
2,509,722
|
|
$
|
2,575,457
|
|
Asset
Quality
|
|
|
|
|
|
Nonperforming assets
(NPAs):
|
|
|
|
|
|
Loans 90+ days
past due and accruing
|
$
|
3,542
|
|
$
|
2,583
|
|
$
|
3,006
|
|
$
|
3,771
|
|
$
|
4,161
|
|
Nonaccrual
loans
|
16,219
|
|
16,921
|
|
18,293
|
|
21,325
|
|
19,346
|
|
Total nonperforming loans (NPLs)
|
19,761
|
|
19,504
|
|
21,299
|
|
25,096
|
|
23,507
|
|
Other real
estate owned (OREO)
|
276
|
|
652
|
|
677
|
|
661
|
|
719
|
|
Total NPAs
|
$
|
20,037
|
|
$
|
20,156
|
|
$
|
21,976
|
|
$
|
25,757
|
|
$
|
24,226
|
|
Criticized loans
(d)
|
96,671
|
|
111,480
|
|
101,284
|
|
99,182
|
|
99,294
|
|
Classified loans
(e)
|
41,233
|
|
53,041
|
|
56,503
|
|
57,736
|
|
53,755
|
|
Allowance for loan
losses as a percent of NPLs (f)(g)
|
96.11
|
%
|
96.47
|
%
|
86.71
|
%
|
73.43
|
%
|
77.50
|
%
|
NPLs as a percent of
total loans (f)(g)
|
0.85
|
%
|
0.85
|
%
|
0.95
|
%
|
1.13
|
%
|
1.08
|
%
|
NPAs as a percent of
total assets (f)(g)
|
0.56
|
%
|
0.57
|
%
|
0.64
|
%
|
0.75
|
%
|
0.72
|
%
|
NPAs as a percent of
total loans and OREO (f)(g)
|
0.86
|
%
|
0.88
|
%
|
0.98
|
%
|
1.16
|
%
|
1.11
|
%
|
Criticized loans as a
percent of total loans
|
4.15
|
%
|
4.86
|
%
|
4.50
|
%
|
4.46
|
%
|
4.58
|
%
|
Classified loans as a
percent of total loans
|
1.77
|
%
|
2.31
|
%
|
2.51
|
%
|
2.59
|
%
|
2.48
|
%
|
Allowance for loan
losses as a percent of total loans (f)
|
0.82
|
%
|
0.82
|
%
|
0.82
|
%
|
0.83
|
%
|
0.84
|
%
|
Capital
Information (h)
|
|
|
|
|
|
Common Equity Tier 1
risk-based capital ratio
|
13.31
|
%
|
13.18
|
%
|
13.05
|
%
|
12.91
|
%
|
13.04
|
%
|
Tier 1 risk-based
capital ratio
|
13.60
|
%
|
13.47
|
%
|
13.34
|
%
|
13.21
|
%
|
13.34
|
%
|
Total risk-based
capital ratio (Tier 1 and Tier 2)
|
14.49
|
%
|
14.40
|
%
|
14.27
|
%
|
14.11
|
%
|
14.24
|
%
|
Leverage
ratio
|
9.82
|
%
|
9.72
|
%
|
9.60
|
%
|
9.66
|
%
|
9.71
|
%
|
Common Equity Tier 1
capital
|
$
|
326,966
|
|
$
|
318,849
|
|
$
|
310,856
|
|
$
|
306,506
|
|
$
|
301,222
|
|
Tier 1
capital
|
334,027
|
|
325,865
|
|
317,826
|
|
313,430
|
|
308,099
|
|
Total capital (Tier 1
and Tier 2)
|
355,951
|
|
348,309
|
|
340,147
|
|
334,957
|
|
328,948
|
|
Total risk-weighted
assets
|
$
|
2,456,797
|
|
$
|
2,419,335
|
|
$
|
2,382,874
|
|
$
|
2,373,359
|
|
$
|
2,309,951
|
|
Tangible equity to
tangible assets (i)
|
9.20
|
%
|
9.07
|
%
|
8.98
|
%
|
8.80
|
%
|
9.13
|
%
|
|
|
(a)
|
Includes all loans
acquired in 2012 and thereafter.
|
(b)
|
The sum of amounts
presented is considered total demand deposits.
|
(c)
|
Prior periods
reclassified.
|
(d)
|
Includes loans
categorized as a special mention, substandard, or
doubtful.
|
(e)
|
Includes loans
categorized as substandard or doubtful.
|
(f)
|
Data presented as of
the end of the period indicated.
|
(g)
|
Nonperforming loans
include loans 90+ days past due and accruing, renegotiated loans
and nonaccrual loans. Nonperforming assets include nonperforming
loans and OREO.
|
(h)
|
September 30,
2017 data based on preliminary analysis and subject to
revision.
|
(i)
|
This ratio represents
a non-GAAP financial measure since it excludes the balance sheet
impact of intangible assets acquired through acquisitions on both
total stockholders' equity and total assets. Additional
information regarding the calculation of this ratio is included at
the end of this news release.
|
PROVISION FOR LOAN
LOSSES INFORMATION
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
30,
|
|
June
30,
|
|
September
30,
|
|
September
30,
|
(in
$000's)
|
2017
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Provision for Loan
Losses
|
|
|
|
|
|
|
|
|
|
Provision for loan
losses
|
$
|
900
|
|
|
$
|
850
|
|
|
$
|
978
|
|
|
$
|
2,150
|
|
|
$
|
2,410
|
|
Provision for
checking account overdrafts
|
186
|
|
|
97
|
|
|
168
|
|
|
507
|
|
|
418
|
|
Total
provision for loan losses
|
$
|
1,086
|
|
|
$
|
947
|
|
|
$
|
1,146
|
|
|
$
|
2,657
|
|
|
$
|
2,828
|
|
|
|
|
|
|
|
|
|
|
|
Net
Charge-Offs
|
|
|
|
|
|
|
|
|
|
Gross
charge-offs
|
$
|
1,219
|
|
|
$
|
957
|
|
|
$
|
1,264
|
|
|
3,276
|
|
|
$
|
4,121
|
|
Recoveries
|
310
|
|
|
357
|
|
|
499
|
|
|
1,182
|
|
|
2,733
|
|
Net
charge-offs
|
$
|
909
|
|
|
$
|
600
|
|
|
$
|
765
|
|
|
$
|
2,094
|
|
|
$
|
1,388
|
|
|
|
|
|
|
|
|
|
|
|
Net Charge-Offs
(Recoveries) by Type
|
|
|
|
|
|
|
|
|
|
Commercial real
estate, other
|
$
|
(19)
|
|
|
$
|
11
|
|
|
$
|
10
|
|
|
$
|
(110)
|
|
|
$
|
(1,143)
|
|
Commercial and
industrial
|
47
|
|
|
—
|
|
|
—
|
|
|
164
|
|
|
767
|
|
Residential real
estate
|
226
|
|
|
78
|
|
|
23
|
|
|
323
|
|
|
354
|
|
Home equity lines of
credit
|
77
|
|
|
14
|
|
|
21
|
|
|
91
|
|
|
25
|
|
Consumer,
indirect
|
319
|
|
|
299
|
|
|
421
|
|
|
895
|
|
|
776
|
|
Consumer,
other
|
60
|
|
|
73
|
|
|
121
|
|
|
123
|
|
|
213
|
|
Deposit account
overdrafts
|
199
|
|
|
125
|
|
|
169
|
|
|
608
|
|
|
396
|
|
Total net
charge-offs
|
$
|
909
|
|
|
$
|
600
|
|
|
$
|
765
|
|
|
$
|
2,094
|
|
|
$
|
1,388
|
|
|
|
|
|
|
|
|
|
|
|
As a percent of
average gross loans (annualized)
|
0.16
|
%
|
|
0.11
|
%
|
|
0.14
|
%
|
|
0.12
|
%
|
|
0.09
|
%
|
SUPPLEMENTAL
INFORMATION
|
|
|
September
30,
|
|
June
30,
|
|
March
31
|
|
December
31,
|
|
September
30,
|
(in $000's, end of
period)
|
2017
|
|
2017
|
|
2017
|
|
2016
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
Trust assets under
administration and management
|
$
|
1,418,360
|
|
|
$
|
1,393,435
|
|
|
$
|
1,362,243
|
|
|
$
|
1,301,509
|
|
|
$
|
1,292,044
|
|
Brokerage assets
under administration and management
|
862,530
|
|
|
836,192
|
|
|
805,361
|
|
|
777,771
|
|
|
754,168
|
|
Mortgage loans
serviced for others
|
$
|
409,199
|
|
|
$
|
402,516
|
|
|
$
|
399,279
|
|
|
$
|
398,134
|
|
|
$
|
389,090
|
|
Employees (full-time
equivalent)
|
778
|
|
|
775
|
|
|
776
|
|
|
782
|
|
|
799
|
|
CONSOLIDATED
AVERAGE BALANCE SHEETS AND NET INTEREST INCOME
|
|
|
Three Months
Ended
|
|
September 30,
2017
|
|
June 30,
2017
|
|
September 30,
2016
|
(in
$000's)
|
Balance
|
Income/
Expense
|
Yield/
Cost
|
|
Balance
|
Income/
Expense
|
Yield/
Cost
|
|
Balance
|
Income/
Expense
|
Yield/
Cost
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
Short-term
investments
|
$
|
12,812
|
|
$
|
42
|
|
1.30
|
%
|
|
$
|
12,275
|
|
$
|
26
|
|
0.85
|
%
|
|
$
|
8,663
|
|
$
|
10
|
|
0.46
|
%
|
Investment securities
(a)(b)
|
885,744
|
|
6,739
|
|
3.04
|
%
|
|
879,498
|
|
6,174
|
|
2.81
|
%
|
|
849,266
|
|
5,686
|
|
2.68
|
%
|
Loans
(b)(c):
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real
estate, construction
|
118,208
|
|
1,337
|
|
4.43
|
%
|
|
107,224
|
|
1,158
|
|
4.27
|
%
|
|
93,353
|
|
915
|
|
3.84
|
%
|
Commercial real
estate, other
|
750,260
|
|
8,890
|
|
4.64
|
%
|
|
735,915
|
|
8,892
|
|
4.78
|
%
|
|
707,269
|
|
8,362
|
|
4.63
|
%
|
Commercial and
industrial
|
438,524
|
|
5,196
|
|
4.64
|
%
|
|
433,277
|
|
4,858
|
|
4.44
|
%
|
|
378,053
|
|
3,855
|
|
3.99
|
%
|
Residential real
estate (d)
|
507,906
|
|
5,468
|
|
4.31
|
%
|
|
520,863
|
|
5,564
|
|
4.27
|
%
|
|
554,039
|
|
6,070
|
|
4.38
|
%
|
Home equity lines of
credit
|
110,741
|
|
1,291
|
|
4.63
|
%
|
|
111,185
|
|
1,233
|
|
4.45
|
%
|
|
110,232
|
|
1,246
|
|
4.50
|
%
|
Consumer,
indirect
|
322,072
|
|
2,955
|
|
3.64
|
%
|
|
293,917
|
|
2,570
|
|
3.51
|
%
|
|
218,318
|
|
1,975
|
|
3.64
|
%
|
Consumer,
other
|
70,204
|
|
1,270
|
|
7.18
|
%
|
|
69,329
|
|
1,229
|
|
7.11
|
%
|
|
72,729
|
|
1,108
|
|
6.13
|
%
|
Total
loans
|
2,317,915
|
|
26,407
|
|
4.49
|
%
|
|
2,271,710
|
|
25,504
|
|
4.46
|
%
|
|
2,133,993
|
|
23,531
|
|
4.35
|
%
|
Allowance for loan
losses
|
(18,869)
|
|
|
|
|
(18,554)
|
|
|
|
|
(17,787)
|
|
|
|
Net loans
|
2,299,046
|
|
|
|
|
2,253,156
|
|
|
|
|
2,116,206
|
|
|
|
Total earning
assets
|
3,197,602
|
|
33,188
|
|
4.10
|
%
|
|
3,144,929
|
|
31,704
|
|
4.01
|
%
|
|
2,974,135
|
|
29,227
|
|
3.89
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Intangible
assets
|
144,267
|
|
|
|
|
145,052
|
|
|
|
|
147,466
|
|
|
|
Other
assets
|
199,351
|
|
|
|
|
199,720
|
|
|
|
|
203,035
|
|
|
|
Total
assets
|
$
|
3,541,220
|
|
|
|
|
$
|
3,489,701
|
|
|
|
|
$
|
3,324,636
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Equity
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
deposits:
|
|
|
|
|
|
|
|
|
|
|
|
Savings
accounts
|
$
|
443,599
|
|
$
|
65
|
|
0.06
|
%
|
|
$
|
444,824
|
|
$
|
61
|
|
0.06
|
%
|
|
$
|
439,464
|
|
$
|
59
|
|
0.05
|
%
|
Governmental deposit
accounts
|
309,623
|
|
200
|
|
0.26
|
%
|
|
301,448
|
|
168
|
|
0.22
|
%
|
|
311,650
|
|
152
|
|
0.19
|
%
|
Interest-bearing
demand accounts
|
320,788
|
|
133
|
|
0.16
|
%
|
|
295,080
|
|
98
|
|
0.13
|
%
|
|
264,182
|
|
61
|
|
0.09
|
%
|
Money market deposit
accounts
|
389,292
|
|
253
|
|
0.26
|
%
|
|
393,807
|
|
197
|
|
0.20
|
%
|
|
400,749
|
|
175
|
|
0.17
|
%
|
Retail certificates
of deposit
|
348,047
|
|
760
|
|
0.87
|
%
|
|
355,256
|
|
746
|
|
0.84
|
%
|
|
398,388
|
|
777
|
|
0.78
|
%
|
Brokered certificates
of deposit
|
106,448
|
|
454
|
|
1.69
|
%
|
|
110,160
|
|
459
|
|
1.67
|
%
|
|
31,910
|
|
203
|
|
2.56
|
%
|
Total
interest-bearing deposits
|
1,917,797
|
|
1,865
|
|
0.39
|
%
|
|
1,900,575
|
|
1,729
|
|
0.36
|
%
|
|
1,846,343
|
|
1,427
|
|
0.31
|
%
|
Short-term
borrowings
|
174,466
|
|
369
|
|
0.84
|
%
|
|
159,505
|
|
233
|
|
0.58
|
%
|
|
143,814
|
|
109
|
|
0.30
|
%
|
Long-term
borrowings
|
200,073
|
|
1,274
|
|
2.53
|
%
|
|
178,131
|
|
1,156
|
|
2.60
|
%
|
|
147,732
|
|
1,071
|
|
2.89
|
%
|
Total borrowed
funds
|
374,539
|
|
1,643
|
|
1.74
|
%
|
|
337,636
|
|
1,389
|
|
1.65
|
%
|
|
291,546
|
|
1,180
|
|
1.61
|
%
|
Total
interest-bearing liabilities
|
2,292,336
|
|
3,508
|
|
0.61
|
%
|
|
2,238,211
|
|
3,118
|
|
0.56
|
%
|
|
2,137,889
|
|
2,607
|
|
0.49
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest-bearing
deposits
|
756,098
|
|
|
|
|
769,406
|
|
|
|
|
709,432
|
|
|
|
Other
liabilities
|
36,588
|
|
|
|
|
34,685
|
|
|
|
|
38,709
|
|
|
|
Total
liabilities
|
3,085,022
|
|
|
|
|
3,042,302
|
|
|
|
|
2,886,030
|
|
|
|
Stockholders'
equity
|
456,198
|
|
|
|
|
447,399
|
|
|
|
|
438,606
|
|
|
|
Total liabilities and
equity
|
$
|
3,541,220
|
|
|
|
|
$
|
3,489,701
|
|
|
|
|
$
|
3,324,636
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income/spread (b)
|
|
$
|
29,680
|
|
3.49
|
%
|
|
|
$
|
28,586
|
|
3.45
|
%
|
|
|
$
|
26,620
|
|
3.40
|
%
|
Net interest margin
(b)
|
|
|
3.67
|
%
|
|
|
|
3.62
|
%
|
|
|
|
3.54
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Nine
Months Ended
|
|
September 30,
2017
|
|
September 30,
2016
|
(in
$000's)
|
Balance
|
Income/
Expense
|
Yield/
Cost
|
|
Balance
|
Income/
Expense
|
Yield/
Cost
|
Assets
|
|
|
|
|
|
|
|
Short-term
investments
|
10,854
|
|
83
|
|
1.02
|
%
|
|
$
|
10,052
|
|
$
|
37
|
|
0.49
|
%
|
Investment securities
(a)(b)
|
876,037
|
|
18,889
|
|
2.87
|
%
|
|
867,253
|
|
17,598
|
|
2.71
|
%
|
Loans
(b)(c):
|
|
|
|
|
|
|
|
Commercial real
estate, construction
|
106,637
|
|
3,488
|
|
4.31
|
%
|
|
88,373
|
|
2,566
|
|
3.81
|
%
|
Commercial real
estate, other
|
740,263
|
|
26,205
|
|
4.67
|
%
|
|
721,620
|
|
25,195
|
|
4.59
|
%
|
Commercial and
industrial
|
434,976
|
|
14,599
|
|
4.43
|
%
|
|
369,248
|
|
11,568
|
|
4.12
|
%
|
Residential real
estate (d)
|
519,989
|
|
16,801
|
|
4.31
|
%
|
|
560,681
|
|
18,341
|
|
4.36
|
%
|
Home equity lines of
credit
|
111,012
|
|
3,683
|
|
4.44
|
%
|
|
108,380
|
|
3,639
|
|
4.49
|
%
|
Consumer,
indirect
|
295,461
|
|
7,758
|
|
3.51
|
%
|
|
195,613
|
|
5,432
|
|
3.71
|
%
|
Consumer,
other
|
69,914
|
|
3,718
|
|
7.11
|
%
|
|
72,060
|
|
3,226
|
|
5.98
|
%
|
Total
loans
|
2,278,252
|
|
76,252
|
|
4.46
|
%
|
|
2,115,975
|
|
69,967
|
|
4.41
|
%
|
Allowance for loan
losses
|
(18,671)
|
|
|
|
|
(17,333)
|
|
|
|
Net loans
|
2,259,581
|
|
|
|
|
2,098,642
|
|
|
|
Total earning
assets
|
3,146,472
|
|
95,224
|
|
4.02
|
%
|
|
2,975,947
|
|
87,602
|
|
3.90
|
%
|
|
|
|
|
|
|
|
|
Intangible
assets
|
144,950
|
|
|
|
|
148,482
|
|
|
|
Other
assets
|
201,350
|
|
|
|
|
175,909
|
|
|
|
Total
assets
|
$
|
3,492,772
|
|
|
|
|
$
|
3,300,338
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Equity
|
|
|
|
|
|
|
|
Interest-bearing
deposits:
|
|
|
|
|
|
|
|
Savings
accounts
|
442,559
|
|
184
|
|
0.06
|
%
|
|
$
|
433,233
|
|
$
|
173
|
|
0.05
|
%
|
Governmental deposit
accounts
|
298,321
|
|
499
|
|
0.22
|
%
|
|
304,422
|
|
444
|
|
0.19
|
%
|
Interest-bearing
demand accounts
|
300,911
|
|
310
|
|
0.14
|
%
|
|
255,796
|
|
151
|
|
0.08
|
%
|
Money market deposit
accounts
|
393,944
|
|
637
|
|
0.22
|
%
|
|
399,853
|
|
500
|
|
0.17
|
%
|
Retail certificates
of deposit
|
85,576
|
|
1,218
|
|
1.90
|
%
|
|
41,965
|
|
890
|
|
2.83
|
%
|
Brokered certificates
of deposit
|
363,747
|
|
2,233
|
|
0.82
|
%
|
|
417,599
|
|
2,373
|
|
0.76
|
%
|
Total
interest-bearing deposits
|
1,885,058
|
|
5,081
|
|
0.36
|
%
|
|
1,852,868
|
|
4,531
|
|
0.33
|
%
|
Short-term
borrowings
|
179,643
|
|
853
|
|
0.64
|
%
|
|
140,808
|
|
301
|
|
0.29
|
%
|
Long-term
borrowings
|
183,521
|
|
3,564
|
|
2.59
|
%
|
|
126,587
|
|
3,064
|
|
3.23
|
%
|
Total borrowed
funds
|
363,164
|
|
4,417
|
|
1.62
|
%
|
|
267,395
|
|
3,365
|
|
1.68
|
%
|
Total
interest-bearing liabilities
|
2,248,222
|
|
9,498
|
|
0.56
|
%
|
|
2,120,263
|
|
7,896
|
|
0.50
|
%
|
|
|
|
|
|
|
|
|
Non-interest-bearing
deposits
|
761,308
|
|
|
|
|
715,244
|
|
|
|
Other
liabilities
|
35,650
|
|
|
|
|
34,062
|
|
|
|
Total
liabilities
|
3,045,180
|
|
|
|
|
2,869,569
|
|
|
|
Stockholders'
equity
|
447,592
|
|
|
|
|
430,769
|
|
|
|
Total liabilities and
equity
|
$
|
3,492,772
|
|
|
|
|
$
|
3,300,338
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income/spread (b)
|
|
$
|
85,726
|
|
3.46
|
%
|
|
|
$
|
79,706
|
|
3.40
|
%
|
Net interest margin
(b)
|
|
|
3.61
|
%
|
|
|
|
3.55
|
%
|
|
(a) Average balances
are based on carrying value.
|
(b) Interest income
and yields are presented on a fully tax-equivalent basis using a
35% federal statutory tax rate.
|
(c) Average balances
include nonaccrual and impaired loans. Interest income
includes interest earned and received on nonaccrual loans prior to
the loans being placed on nonaccrual status. Loan fees
included in interest income were immaterial for all periods
presented.
|
(d) Loans held for
sale are included in the average loan balance listed. Related
interest income on loans originated for sale prior to the loan
being sold is included in loan interest income.
|
NON-GAAP FINANCIAL
MEASURES
|
|
The following
non-GAAP financial measures used by Peoples provide information
useful to investors in understanding Peoples' operating performance
and trends, and facilitate comparisons with the performance of
Peoples' peers. The following tables summarize the non-GAAP
financial measures derived from amounts reported in Peoples'
consolidated financial statements:
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
30,
|
|
June
30,
|
|
September
30,
|
|
September
30,
|
(in
$000's)
|
2017
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
Core non-interest
expense:
|
|
|
|
|
|
|
|
|
|
Total non-interest
expense
|
$
|
26,558
|
|
|
$
|
26,680
|
|
|
$
|
26,842
|
|
|
$
|
80,569
|
|
|
$
|
79,629
|
|
Less: System upgrade
costs
|
—
|
|
|
—
|
|
|
423
|
|
|
—
|
|
|
513
|
|
Core non-interest
expense
|
$
|
26,558
|
|
|
$
|
26,680
|
|
|
$
|
26,419
|
|
|
$
|
80,569
|
|
|
$
|
79,116
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
30,
|
|
June
30,
|
|
September
30,
|
|
September
30,
|
(in
$000's)
|
2017
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
Efficiency
ratio:
|
|
|
|
|
|
|
|
|
|
Total non-interest
expense
|
$
|
26,558
|
|
|
$
|
26,680
|
|
|
$
|
26,842
|
|
|
$
|
80,569
|
|
|
$
|
79,629
|
|
Less: Amortization of
intangible assets
|
869
|
|
|
871
|
|
|
1,008
|
|
|
2,603
|
|
|
3,023
|
|
Adjusted non-interest
expense
|
$
|
25,689
|
|
|
$
|
25,809
|
|
|
$
|
25,834
|
|
|
$
|
77,966
|
|
|
$
|
76,606
|
|
|
|
|
|
|
|
|
|
|
|
Total fee-based
income
|
$
|
12,610
|
|
|
$
|
13,590
|
|
|
$
|
13,538
|
|
|
39,534
|
|
|
38,959
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
$
|
29,220
|
|
|
$
|
28,090
|
|
|
$
|
26,123
|
|
|
$
|
84,255
|
|
|
$
|
78,198
|
|
Add: Fully
tax-equivalent adjustment
|
460
|
|
|
496
|
|
|
497
|
|
|
1,471
|
|
|
1,508
|
|
Net interest income
on a fully tax-equivalent basis
|
$
|
29,680
|
|
|
$
|
28,586
|
|
|
$
|
26,620
|
|
|
$
|
85,726
|
|
|
$
|
79,706
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
revenue
|
$
|
42,290
|
|
|
$
|
42,176
|
|
|
$
|
40,158
|
|
|
$
|
125,260
|
|
|
$
|
118,665
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency
ratio
|
60.74
|
%
|
|
61.19
|
%
|
|
64.33
|
%
|
|
62.24
|
%
|
|
64.56
|
%
|
|
|
|
|
|
|
|
|
|
|
Efficiency ratio
adjusted for non-core items:
|
|
|
|
|
|
|
|
|
Core non-interest
expense
|
$
|
26,558
|
|
|
$
|
26,680
|
|
|
$
|
26,419
|
|
|
$
|
80,569
|
|
|
$
|
79,116
|
|
Less: Amortization of
intangible assets
|
869
|
|
|
871
|
|
|
1,008
|
|
|
2,603
|
|
|
3,023
|
|
Adjusted non-interest
expense
|
$
|
25,689
|
|
|
$
|
25,809
|
|
|
$
|
25,411
|
|
|
$
|
77,966
|
|
|
$
|
76,093
|
|
Total fee-based
income
|
$
|
12,610
|
|
|
$
|
13,590
|
|
|
$
|
13,538
|
|
|
$
|
39,534
|
|
|
$
|
38,959
|
|
Net interest income
on a fully tax-equivalent basis
|
$
|
29,680
|
|
|
$
|
28,586
|
|
|
$
|
26,620
|
|
|
$
|
85,726
|
|
|
$
|
79,706
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
revenue
|
$
|
42,290
|
|
|
$
|
42,176
|
|
|
$
|
40,158
|
|
|
$
|
125,260
|
|
|
$
|
118,665
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency ratio
adjusted for non-core items
|
60.74
|
%
|
|
61.19
|
%
|
|
63.28
|
%
|
|
62.24
|
%
|
|
64.12
|
%
|
|
At or For the
Three Months Ended
|
|
September
30,
|
|
June
30,
|
|
December
31,
|
|
September
30,
|
|
June
30,
|
(in
$000's)
|
2017
|
|
2017
|
|
2016
|
|
2016
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
Tangible
Equity:
|
|
|
|
|
|
|
|
|
|
Total stockholders'
equity
|
$
|
457,386
|
|
|
$
|
451,353
|
|
|
$
|
443,009
|
|
|
$
|
435,261
|
|
|
$
|
440,637
|
|
Less: goodwill and
other intangible assets
|
143,859
|
|
|
144,692
|
|
|
145,505
|
|
|
146,018
|
|
|
147,005
|
|
Tangible
equity
|
$
|
313,527
|
|
|
$
|
306,661
|
|
|
$
|
297,504
|
|
|
$
|
289,243
|
|
|
$
|
293,632
|
|
|
|
|
|
|
|
|
|
|
|
Tangible
Assets:
|
|
|
|
|
|
|
|
|
|
Total
assets
|
$
|
3,552,412
|
|
|
$
|
3,525,126
|
|
|
$
|
3,459,276
|
|
|
$
|
3,432,348
|
|
|
$
|
3,363,585
|
|
Less: goodwill and
other intangible assets
|
143,859
|
|
|
144,692
|
|
|
145,505
|
|
|
146,018
|
|
|
147,005
|
|
Tangible
assets
|
$
|
3,408,553
|
|
|
$
|
3,380,434
|
|
|
$
|
3,313,771
|
|
|
$
|
3,286,330
|
|
|
$
|
3,216,580
|
|
|
|
|
|
|
|
|
|
|
|
Tangible Book
Value per Common Share:
|
|
|
|
|
|
|
|
|
|
Tangible
equity
|
$
|
313,527
|
|
|
$
|
306,661
|
|
|
$
|
297,504
|
|
|
$
|
289,243
|
|
|
$
|
293,632
|
|
Common shares
outstanding
|
18,281,194
|
|
|
18,279,036
|
|
|
18,270,508
|
|
|
18,200,067
|
|
|
18,195,986
|
|
|
|
|
|
|
|
|
|
|
|
Tangible book value
per common share
|
$
|
17.15
|
|
|
$
|
16.78
|
|
|
$
|
16.28
|
|
|
$
|
15.89
|
|
|
$
|
16.14
|
|
|
|
|
|
|
|
|
|
|
|
Tangible Equity to
Tangible Assets Ratio:
|
|
|
|
|
Tangible
equity
|
$
|
313,527
|
|
|
$
|
306,661
|
|
|
$
|
297,504
|
|
|
$
|
289,243
|
|
|
$
|
293,632
|
|
Tangible
assets
|
$
|
3,408,553
|
|
|
$
|
3,380,434
|
|
|
$
|
3,313,771
|
|
|
$
|
3,286,330
|
|
|
$
|
3,216,580
|
|
|
|
|
|
|
|
|
|
|
|
Tangible equity to
tangible assets
|
9.20
|
%
|
|
9.07
|
%
|
|
8.98
|
%
|
|
8.80
|
%
|
|
9.13
|
%
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
30,
|
|
June
30,
|
|
September
30,
|
|
September
30,
|
(in
$000's)
|
2017
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
Pre-Provision Net
Revenue:
|
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
$
|
16,022
|
|
|
$
|
14,180
|
|
|
$
|
11,448
|
|
|
$
|
42,863
|
|
|
$
|
34,538
|
|
Add: provision for
loan losses
|
1,086
|
|
|
947
|
|
|
1,146
|
|
|
2,657
|
|
|
2,828
|
|
Add: loss on debt
extinguishment
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
707
|
|
Add: net loss on
OREO
|
—
|
|
|
24
|
|
|
—
|
|
|
24
|
|
|
1
|
|
Add: net loss on
investment securities
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
Add: net loss on
other assets
|
38
|
|
|
—
|
|
|
224
|
|
|
41
|
|
|
316
|
|
Less: net gain on
OREO
|
13
|
|
|
—
|
|
|
—
|
|
|
13
|
|
|
—
|
|
Less: net gain on
investment securities
|
1,861
|
|
|
18
|
|
|
—
|
|
|
2,219
|
|
|
862
|
|
Less: net gain on
other assets
|
—
|
|
|
133
|
|
|
—
|
|
|
133
|
|
|
—
|
|
Pre-provision net
revenue
|
$
|
15,272
|
|
|
$
|
15,000
|
|
|
$
|
12,819
|
|
|
$
|
43,220
|
|
|
$
|
37,528
|
|
|
|
|
|
|
|
|
|
|
|
Pre-provision net
revenue
|
$
|
15,272
|
|
|
$
|
15,000
|
|
|
$
|
12,819
|
|
|
$
|
43,220
|
|
|
$
|
37,528
|
|
Total average
assets
|
$
|
3,541,220
|
|
|
$
|
3,489,701
|
|
|
$
|
3,324,636
|
|
|
$
|
3,492,772
|
|
|
$
|
3,300,338
|
|
|
|
|
|
|
|
|
|
|
|
Pre-provision net
revenue to total average assets (annualized)
|
1.71
|
%
|
|
1.72
|
%
|
|
1.53
|
%
|
|
1.65
|
%
|
|
1.52
|
%
|
|
At or For the
Three Months Ended
|
|
For the Nine
Months Ended
|
|
September
30,
|
|
June
30,
|
|
September
30,
|
|
September
30,
|
(in
$000's)
|
2017
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
Annualized Net
Income Excluding Amortization of Other Intangible
Assets:
|
|
|
|
|
Net
income
|
$
|
10,895
|
|
|
$
|
9,766
|
|
|
$
|
7,792
|
|
|
$
|
29,470
|
|
|
$
|
23,749
|
|
Add: amortization of
other intangible assets
|
869
|
|
|
871
|
|
|
1,008
|
|
|
2,603
|
|
|
3,023
|
|
Less: tax effect (at
35% tax rate) of
amortization of other intangible assets
|
304
|
|
|
305
|
|
|
353
|
|
|
911
|
|
|
1,058
|
|
Net income excluding
amortization of other intangible assets
|
$
|
11,460
|
|
|
$
|
10,332
|
|
|
$
|
8,447
|
|
|
$
|
31,162
|
|
|
$
|
25,714
|
|
|
|
|
|
|
|
|
|
|
|
Days in the
period
|
92
|
|
|
91
|
|
|
92
|
|
|
273
|
|
|
274
|
|
Days in the
year
|
365
|
|
|
365
|
|
|
366
|
|
|
365
|
|
|
366
|
|
Annualized net
income
|
$
|
43,225
|
|
|
$
|
39,171
|
|
|
$
|
30,999
|
|
|
$
|
39,401
|
|
|
$
|
31,723
|
|
Annualized net income
excluding
amortization of other intangible assets
|
$
|
45,466
|
|
|
$
|
41,442
|
|
|
$
|
33,604
|
|
|
$
|
41,663
|
|
|
$
|
34,348
|
|
|
|
|
|
|
|
|
|
|
|
Average Tangible
Stockholders' Equity:
|
|
|
|
|
Total average
stockholders' equity
|
$
|
456,198
|
|
|
$
|
447,399
|
|
|
$
|
438,606
|
|
|
$
|
447,592
|
|
|
$
|
430,769
|
|
Less: average
goodwill and other intangible assets
|
144,267
|
|
|
145,052
|
|
|
147,466
|
|
|
144,950
|
|
|
148,482
|
|
Average tangible
stockholders' equity
|
$
|
311,931
|
|
|
$
|
302,347
|
|
|
$
|
291,140
|
|
|
$
|
302,642
|
|
|
$
|
282,287
|
|
|
|
|
|
|
|
|
|
|
|
Return on Average
Stockholders' Equity Ratio:
|
|
|
|
|
|
Annualized net
income
|
$
|
43,225
|
|
|
$
|
39,171
|
|
|
$
|
30,999
|
|
|
$
|
39,401
|
|
|
$
|
31,723
|
|
Average stockholders'
equity
|
$
|
456,198
|
|
|
$
|
447,399
|
|
|
$
|
438,606
|
|
|
$
|
447,592
|
|
|
$
|
430,769
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
stockholders' equity
|
9.47
|
%
|
|
8.76
|
%
|
|
7.07
|
%
|
|
8.80
|
%
|
|
7.36
|
%
|
|
|
|
|
|
|
Return on Average
Tangible Stockholders' Equity Ratio:
|
|
|
|
|
|
Annualized net income
excluding amortization of other intangible assets
|
$
|
45,466
|
|
|
$
|
41,442
|
|
|
$
|
33,604
|
|
|
$
|
41,663
|
|
|
$
|
34,348
|
|
Average tangible
stockholders' equity
|
$
|
311,931
|
|
|
$
|
302,347
|
|
|
$
|
291,140
|
|
|
$
|
302,642
|
|
|
$
|
282,287
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
tangible stockholders' equity
|
14.58
|
%
|
|
13.71
|
%
|
|
11.54
|
%
|
|
13.77
|
%
|
|
12.17
|
%
|
View original
content:http://www.prnewswire.com/news-releases/peoples-bancorp-inc-reports-the-third-consecutive-quarter-of-record-quarterly-net-income-300541628.html
SOURCE Peoples Bancorp Inc.