MARIETTA, Ohio, Jan. 24,
2023 /PRNewswire/ -- Peoples Bancorp Inc. ("Peoples")
(NASDAQ: PEBO) today announced results for the quarter and year
ended December 31, 2022. Net income totaled $26.8 million for the fourth quarter of
2022, representing earnings per diluted common share of
$0.95. In comparison, earnings
per diluted common share were $0.92
for the third quarter of 2022 and $0.98 for the fourth quarter of 2021. For the
full year, net income was $101.3 million in 2022 versus $47.6 million in 2021, representing earnings per
diluted common share of $3.60 and
$2.15, respectively.
The provision for (recovery of) credit losses recorded
represents the amount needed to maintain the appropriate level of
the allowance for credit losses based on management's quarterly
estimates. The provision for credit losses negatively impacted
earnings per diluted common share by $0.06 for the fourth quarter of 2022 and
$0.05 for the third quarter of 2022,
while the recovery of credit losses had a positive impact on
earnings per diluted common share of $0.21 for the fourth quarter of 2021. For the
full year of 2022, the recovery of credit losses positively
impacted earnings per diluted common share by $0.10, compared to a provision for credit
losses that negatively impacted earnings per diluted common share
by $0.01 for the full year of
2021.
Non-core items, and the related tax effect of each, in net
income included acquisition-related expenses, contract negotiation
expenses and refunds, COVID-19-related expenses, a contribution to
Peoples Bank Foundation, Inc., pension settlement charges,
severance expenses, gains and losses on investment securities, and
gains and losses on asset disposals and other transactions.
Non-core items negatively impacted diluted earnings per
common share for the fourth quarter of 2022 by $0.03 and by $0.01
for the third quarter of 2022, and had no impact on diluted
earnings per common share for the fourth quarter of 2021. Non-core
items negatively impacted earnings per diluted common share by
$0.11 and $0.85 for the full years of 2022 and 2021,
respectively.
"2022 was a record year for Peoples," said Chuck Sulerzyski, President and Chief Executive
Officer. "We benefited from increasing margins, organic growth and
our prior acquisitions. We remain bullish on our ability to further
improve our performance in 2023. I am grateful to our colleagues
and clients for making all of this possible."
Limestone Acquisition:
On October 25, 2022, Peoples announced the signing
of a definitive Agreement and Plan of Merger pursuant to which
Peoples will acquire, in an all-stock merger, Limestone Bancorp
Inc. ("Limestone"), a bank holding company headquartered in
Louisville, Kentucky, and the
parent company of Limestone Bank. Under the terms of the Agreement
and Plan of Merger, Limestone will merge with and into Peoples, and
Limestone Bank will subsequently merge with and into Peoples'
wholly-owned subsidiary, Peoples Bank (collectively, the "Limestone
Merger"), in a transaction valued at approximately $208.2 million at the time of the announcement.
The Limestone merger is expected to close in the second quarter of
2023, subject to the satisfaction of closing conditions, including
regulatory approvals and the approval of the shareholders of
Peoples and of Limestone. As of December 31,
2022, Peoples had recognized $0.6 million in
acquisition-related costs associated with this pending
transaction.
Completion of Vantage Acquisition:
On March 7, 2022, Peoples Bank acquired Vantage
Financial, LLC ("Vantage"), a nationwide provider of equipment
financing headquartered in Excelsior, Minnesota. Under the
terms of the agreement, Peoples Bank purchased 100% of the equity
of Vantage for total cash consideration of $54.0 million. Peoples Bank also repaid
$28.9 million in recourse debt on
behalf of Vantage, for total consideration of $82.9 million. Vantage offers mid-ticket
equipment leases, primarily for business essential information
technology equipment across a wide array of industries. Upon
completion of the transaction, Vantage became a subsidiary of
Peoples Bank. Peoples recognized lease assets of approximately
$154.9 million as of the acquisition
date. Peoples preliminarily recorded $27.2
million in goodwill and $13.2
million in other intangible assets in connection with the
Vantage acquisition.
Premier Financial:
On September
17, 2021, Peoples completed its merger with Premier
Financial Bancorp, Inc. ("Premier"), in which Peoples acquired, in
an all-stock merger, Premier, a bank holding company headquartered
in Huntington, West Virginia, and
the parent company of Premier Bank, Inc. ("Premier Bank") and
Citizens Deposit Bank and Trust, Inc. ("Citizens"). Under the terms
and subject to the conditions of the definitive Agreement and Plan
of Merger, dated March 26, 2021,
Premier merged with and into Peoples (the "Premier Merger"), and
Premier Bank and Citizens subsequently merged with and into Peoples
Bank, in a transaction valued at $261.9
million as of September 17,
2021. At the close of business on September 17, 2021, the financial services
offices of Premier Bank and Citizens became branches of Peoples
Bank. Peoples acquired $1.1 billion
in loans and $1.8 billion in deposits
in the Premier Merger. In addition, Peoples recorded $66.9 million in goodwill and $4.2 million in other intangible assets in
connection with the Premier Merger.
Statement of Operations Highlights:
- Net interest income for the fourth quarter of 2022
increased $3.6 million, or 5%,
compared to the linked quarter and increased $15.9 million, or 29%, compared to the fourth
quarter of 2021.
-
- Net interest margin increased 27 basis points to 4.44% for the
fourth quarter of 2022, compared to the linked quarter, and
increased 107 basis points compared to the fourth quarter of 2021.
The increases in net interest margin when compared to the linked
quarter and the fourth quarter of 2021 were primarily driven by
recent increases in market interest rates.
- The increases in net interest income for the fourth quarter of
2022, compared to the linked quarter and the fourth quarter of
2021, were driven by the Vantage acquisition, core growth and
increases in market interest rates.
- Peoples recorded a provision for credit losses of
$2.3 million for the fourth quarter
of 2022, compared to a provision for credit losses of $1.8 million for the third quarter of 2022, and a
recovery of credit losses of $6.6
million for the fourth quarter of 2021.
-
- The increase in the provision for credit losses for the fourth
quarter of 2022 compared to the linked quarter was due primarily to
a deterioration of macro-economic conditions and an increase in
charge-off activity, partially offset by a reduction in reserves
for individually analyzed loans.
- Net charge-offs were $2.1
million, or 0.18% of average total loans, annualized, for
the fourth quarter of 2022.
- For the full year of 2022, net charge-offs were $7.3 million, or 0.16% of average total loans, up
from $4.7 million, or 0.13% of
average total loans, for 2021.
- Total non-interest income, excluding net gains and
losses, decreased $0.9 million, or
4%, for the fourth quarter of 2022 compared to the linked quarter,
and increased $0.5 million, compared
to the fourth quarter of 2021.
-
- The decrease in total non-interest income, excluding gains and
losses, compared to the third quarter of 2022 was largely driven by
decreases in (i) other non-interest income due to a decline in
commercial loan swap fees, (ii) lease income and (iii) electronic
banking income.
- Total non-interest income, excluding net gains and losses, for
the full year of 2022 was 24% of total revenue.
- Total non-interest expense for the fourth quarter of 2022
increased $1.1 million, or 2%,
compared to the linked quarter and increased $5.4 million, or 11%, compared to the fourth
quarter of 2021.
-
- The increase in total non-interest expense for the fourth
quarter of 2022 when compared to the linked quarter was primarily
attributable to increases in (i) data processing and software
expense, (ii) other non-interest expenses, (iii) professional fees
and (iv) foreclosed real estate and other loan expenses.
- The efficiency ratio was 56.7% for the fourth quarter of 2022.
When adjusted for non-core expenses, the efficiency ratio was 55.9%
for the fourth quarter of 2022.
Balance Sheet Highlights:
- Period-end total loan and lease balances at December 31, 2022 increased $96.0 million, or 8% annualized, compared to at
September 30, 2022. Average total
loan and lease balances for the fourth quarter of 2022 increased
$65.2 million compared to the linked
quarter.
-
- The increases in period-end and average total loan and lease
balances were primarily the result of growth in (i) indirect
consumer loans, (ii) leases, (iii) construction loans, and (iv)
commercial and industrial loans; partially offset by a reduction in
residential real estate loans.
- Asset quality metrics remained stable during the fourth
quarter of 2022.
-
- Delinquency trends remained relatively stable as loans
considered current comprised 98.6% of the loan portfolio at
December 31, 2022, compared to 98.9%
at September 30, 2022.
- Nonperforming assets at December 31,
2022 remained relatively unchanged compared to at
September 30, 2022.
- Criticized loans increased $26.6
million during the fourth quarter of 2022. The increase was
primarily driven by the downgrade of three commercial and
industrial loan relationships.
- Classified loans decreased $5.2
million during the fourth quarter of 2022, driven by
$7 million in upgrades and
$3 million in pay-offs.
- Period-end total deposit balances at December 31, 2022 decreased $148.7 million, or 3%, compared to at
September 30, 2022.
-
- The decrease was primarily driven by the seasonal reduction in
governmental deposit account balances and a decrease in
non-interest bearing checking account balances.
- Total demand deposit balances were 48% of total deposits at
each of December 31, 2022,
September 30, 2022 and December 31, 2021.
- Total loan balances were 82% and 79% of total deposit balances
at December 31, 2022 and at
September 30, 2022,
respectively.
Net Interest Income
Net interest income was
$70.6 million for the fourth quarter
of 2022, an increase of $3.6 million,
or 5%, compared to the linked quarter. Net interest margin was
4.44% for the fourth quarter of 2022, compared to 4.17% for the
linked quarter. The increases in net interest income and net
interest margin were primarily driven by 36 basis points of
improvement in loan yields and 22 basis points of improvement in
investment yields when compared to the linked quarter. The
increases in loan and investment yields for the fourth quarter of
2022, when compared to the linked quarter were due to the recent
increases in market interest rates.
Net interest income for the fourth quarter of 2022 increased
$15.9 million, or 29%, compared to
the fourth quarter of 2021. Net interest margin increased 107 basis
points from 3.37% for the fourth quarter of 2021. The increase in
net interest income compared to the fourth quarter of 2021 was
driven by (i) the Vantage acquisition, (ii) core growth and (iii)
increases in market interest rates.
Accretion income, net of amortization expense, from acquisitions
was $2.2 million for the fourth
quarter of 2022, $2.8 million for the
third quarter of 2022 and $1.0
million for the fourth quarter of 2021, which added 14 basis
points, 16 basis points and 6 basis points, respectively, to net
interest margin. The decrease in accretion income when compared to
the linked quarter was driven by lower pay-offs and less
accretion from the Premier Merger. The increase in accretion income
for the current quarter compared to the fourth quarter of 2021 was
a result of the acquisition of Vantage.
Net interest income increased $80.9 million, or 47%, for 2022 compared to
2021, and net interest margin increased 57 basis points to 3.97%.
The increase in net interest income was driven by (i) the Premier
Merger and the Vantage acquisition, (ii) core growth and (iii)
increases in market interest rates.
Accretion income, net of amortization expense, from acquisitions
was $11.6 million for 2022 and
$3.2 million for 2021,
respectively, which added 18 basis points and 7 basis points to net
interest margin for the full years of 2022 and 2021, respectively.
The increase in accretion income for the full year of 2022 compared
to the same 2021 period was a result of the Premier Merger and the
acquisitions of Vantage and NS Leasing, LLC ("NSL").
Provision for (Recovery of) Credit Losses:
The
provision for credit losses was $2.3 million for the fourth quarter of 2022,
compared to $1.8 million for the
linked quarter and a recovery of credit losses of $6.6 million for the fourth quarter of 2021.
The provision for credit losses in the fourth quarter of 2022 and
the third quarter of 2022 were largely attributable to a
deterioration of macro-economic conditions and an increase in
charge-off activity, partially offset by a reduction in reserves
for individually analyzed loans. The recovery of credit losses for
the fourth quarter of 2021 was the result of improvement in loss
drivers and economic outlook and a release of reserves related to
the sale of $59.8 million in
predominantly purchased credit deteriorated loans acquired from
Premier.
For the full year of 2022, the recovery of credit losses was
$3.5 million, compared to a provision
for credit losses of $0.7 million for
2021. The recovery of credit losses during 2022 compared to the
provision for credit losses during 2021 was driven by improvements
in economic forecasts, coupled with loan pay-offs during certain
periods.
Net charge-offs for the fourth quarter of 2022 were $2.1 million, or 0.18% annualized, of average
total loans, compared to $1.7
million, or 0.15% annualized, of average total loans, for
the linked quarter and $1.3 million,
or 0.11% annualized, of average total loans, for the fourth quarter
of 2021. Net charge-offs for the full year of 2022 were
$7.3 million, or 0.16%, of average
total loans, compared to $4.7
million, or 0.13% of average total loans, for the full year
of 2021. For additional information on credit trends and the
allowance for credit losses, see the "Asset Quality" section
below.
Net Gains and Losses:
Net gains and losses include
gains and losses on investment securities, asset disposals and
other transactions, which are included in total non-interest income
on the Consolidated Statements of Income. Net loss for the fourth
quarter of 2022 was $0.5 million, compared to net loss of
$14,000 for the linked quarter, and
net gain of $0.8 million in the
fourth quarter of 2021. The fourth quarter of 2022 net loss was
primarily due to net losses on repossessed assets and net losses on
sales of investment securities. During the fourth quarter of 2021,
Peoples sold $59.8 million of
predominantly purchased credit deteriorated loans ($52.9 million of which were criticized or
classified), primarily in the hospitality industry, and recognized
a gain related to the acceleration of the discount recorded on
those loans when they were acquired. Net gain for the fourth
quarter of 2021 was driven primarily by gains of $1.5 million recognized on the sale of
$59.8 million in loans acquired from
Premier and the disposal of other real estate owned of $0.3 million, offset by a loss on the sale of
investment securities.
For the full year of 2022, net loss was $0.7 million compared to net loss of $0.4 million in 2021. The increase in net loss
for the full year of 2022 when compared to the same period of 2021
was primarily due to higher net losses on repossessed assets and
net losses on other real estate owned ("OREO"). The net loss during
2021 was driven by losses on sales of investment securities,
partially offset by the aforementioned activity related to the sale
of loans acquired from Premier and gains recognized on the sale of
other real estate owned.
Total Non-interest Income, Excluding Net Gains and
Losses:
Total non-interest income, excluding net gains and
losses, for the fourth quarter of 2022 decreased $0.9 million compared to the linked quarter.
The decrease in non-interest income, excluding net gains and
losses, was primarily impacted by a decline of $0.3 million in lease income. Also impacting the
fourth quarter decrease when compared to the linked quarter
was a decrease in other non-interest income due to a $0.2 million decline in commercial loan swap
fees.
Compared to the fourth quarter of 2021, total non-interest
income, excluding net gains and losses, increased $0.5 million, primarily due to growth
of $0.8 million in lease income due
to the Vantage acquisition and a $0.4
million increase in insurance commissions. Partially
offsetting the fourth quarter of 2022 increase in total
non-interest income, excluding net gains and losses, when compared
to the same 2021 period was a decrease of $0.4 million in mortgage banking income. The
decrease in mortgage banking income was due to the increased market
interest rate environment in 2022 resulting in a lower volume of
new loan originations.
For the full year of 2022, total non-interest income, excluding
net gains and losses, increased $10.3 million compared to 2021. The increase
was driven by growth of $4.4 million
in service charges on deposit accounts and $3.1 million in electronic banking income,
primarily attributable to customers added in the Premier Merger.
Also contributing to the growth was a $3.0
million increase in lease income due primarily to the
Vantage acquisition. Partially offsetting the impact of these 2022
increases when compared to the same period in 2021 was a
$2.0 million decline in mortgage
banking income due to the factors described above.
Total Non-interest Expense:
Total non-interest expense
increased $1.1 million, or 2%,
for the fourth quarter of 2022, compared to the linked quarter.
Total non-interest expense in the fourth and third quarters of 2022
contained non-core expenses, including acquisition-related expenses
of $0.7 million and $0.3 million, respectively, with the increase in
the fourth quarter being attributable to the pending Limestone
Merger. The increase in total non-interest expense for the fourth
quarter of 2022 was primarily attributable to increases in (i) data
processing and software expense, (ii) other non-interest expense,
(iii) professional fees and (iv) other loan expenses. Partially
offsetting these increases in non-interest expenses was a decrease
in electronic banking expense. The increases in non-interest
expenses were primarily driven by core and acquisitive growth.
Compared to the fourth quarter of 2021, total non-interest
expense increased $5.4 million,
or 11%. The increase was primarily due to increases in (i) salaries
and employee benefit costs, (ii) data processing and software
expense and (iii) professional fees. The increases were due to the
recent growth, including through mergers and acquisitions.
Partially offsetting these increases within non-interest expense
was a decrease in electronic banking expenses due to changes
in customer activity.
For the full year of 2022, total non-interest expense was
$207.1 million, an increase of
$23.4 million, or 13%, compared
to 2021. The variance was driven by increases of (i) $18.1 million in salaries and employee benefit
costs, (ii) $4.6 million in net
occupancy and equipment expense, (iii) $3.7
million in data processing and software expenses, and (iv)
$3.0 million in intangible asset
amortization. These increases were primarily due to growth over the
last year, driven by mergers and acquisitions. Partially offsetting
the impact of these increases on non-interest expense was a
decrease in acquisition-related expenses due to the amount of
expenses incurred in connection with the Premier Merger in
2021.
The efficiency ratio for the fourth quarter of 2022 was 56.7%,
compared to 57.2% for the linked quarter and 62.7% for the
fourth quarter of 2021. The efficiency ratio improved compared to
the linked quarter mainly as the result of an increase in interest
income due to the continued rising market interest rates and
growth. The efficiency ratio, adjusted for non-core items, was
55.9% for the fourth quarter of 2022, compared to 56.6% for the
linked quarter, and 61.5% for the fourth quarter of 2021. For
the full year of 2022, the efficiency ratio was 59.6% compared to
73.6% for 2021. Adjusted for non-core items, the efficiency
ratio for the full year of 2022 was 58.6%, compared to 63.5% for
2021. Peoples continues to focus on controlling expenses, while
recognizing necessary costs in order to continue growing the
business.
Income Tax Expense:
Peoples recorded income tax expense of $7.1 million with an
effective tax rate of 21.0% for the fourth quarter of 2022,
compared to income tax expense of $7.4
million with an effective tax rate of 22.2% for the linked
quarter and income tax expense of $5.4
million with an effective tax rate of 16.3% for the fourth
quarter of 2021. The increase in income tax expense when compared
to the fourth quarter of 2021 was primarily due to higher pre-tax
income. Income tax expense for the fourth quarter of 2021 was also
impacted by an income tax benefit related to an adjustment from a
prior period of $1.1 million.
Peoples recognized income tax expense of $27.3 million with an effective tax rate of 21.3%
in the full year of 2022, compared to $9.4
million with an effective tax rate 16.5% in the full
year of 2021. The increase was driven by higher pre-tax income and
a higher effective tax rate primarily due to apportionment in
additional states due to recent acquisitions. The full year of 2021
was also impacted by the adjustment mentioned in the previous
paragraph.
Loans and Leases:
The period-end total loan and
lease balances at December 31, 2022 increased $96.0 million, compared to at September 30,
2022. The increase in the period-end total loan and lease balances
was primarily driven by increases of (i) $37.1 million in consumer indirect loans, (ii)
$32.3 million in leases, (iii)
$31.3 million in construction loans,
and (iv) $15.2 million in commercial
and industrial loans, partially offset by a reduction in
residential real estate loans of $10.0
million. Excluding $1.3
million of forgiveness payments received on PPP loans, total
loan and lease balances grew at an 8% annualized rate. As of
December 31, 2022, the remaining balance of PPP loans was
$2.4 million.
The period-end total loan and lease balances at
December 31, 2022 increased $225.6
million, or 5%, compared to at December 31, 2021. The
increase in the period-end total loan and lease balances was
primarily driven by $154.9 million of
leases acquired from Vantage and increases of (i) $98.9 million in indirect consumer loans, (ii)
$36.7 million in construction loans
and (iii) $23.1 million in premium
finance loans, partially offset by reductions of $126.6 million in other commercial real estate
loans and $48.4 million in
residential real estate loans.
Quarterly average total loan balances increased $65.2 million compared to the linked quarter. The
increase in period-end and average total loan and lease balances
when compared to the linked quarter were primarily the result of
growth of (i) $35.9 million in
indirect consumer loans, (ii) $19.7
million in commercial and industrial loans, (iii)
$17.7 million in leases and (iv)
$11.3 million in commercial real
estate construction loans, partially offset by a reduction of
$16.1 million in residential real
estate loans.
Compared to the fourth quarter of 2021, quarterly average loan
balances in the current quarter increased $156.3 million, or 3%, driven by an increase of
leases acquired from Vantage, as well as leases originated,
partially offset by a reduction in commercial real estate
loans.
Asset Quality:
Overall, asset quality remained
relatively stable through the fourth quarter of 2022. Total
nonperforming assets at December 31, 2022 increased
$0.1 million compared to at
September 30, 2022 and decreased $2.8
million, or 6%, compared to at December 31, 2021. The
slight increase in nonperforming assets compared to the linked
quarter was primarily due to an increase in nonaccrual leases and
commercial and industrial loans substantially offset by a decrease
in past due total loan and lease balances. The decrease in
nonperforming assets compared to at December 31, 2021was
primarily attributable to a reduction in nonaccrual other
commercial real estate loans and residential real estate loans,
partially offset by an increase in past due leases. Nonperforming
assets as a percent of total loans and OREO was 0.96% at
December 31, 2022, down from 0.98% at September 30, 2022
and 1.07% at December 31, 2021.
Criticized loans, which are those categorized as special
mention, substandard or doubtful, increased $26.6 million, or 16%, compared to at
September 30, 2022 and decreased
$2.7 million, or 1%, compared to at
December 31, 2021. As a percent of
total loans, criticized loans were 4.07% at December 31, 2022, compared to 3.57% at
September 30, 2022, and 4.33% at
December 31, 2021. The increase in
the amount of criticized loans compared to at September 30, 2022 was primarily driven by the
downgrade of three commercial and industrial loan relationships.
Compared to December 31, 2021, the
decrease in the amount of criticized loans was largely due to a
reduction in the criticized loans acquired from Premier.
Classified loans, which are those categorized as substandard or
doubtful, decreased $5.2 million, or
6%, compared to at September 30, 2022, and $16.9 million, or 16%, compared to at
December 31, 2021. As a percent of total loans, classified
loans were 1.90% at December 31, 2022, compared to 2.06% at
September 30, 2022, and 2.38% at December 31, 2021. The
decrease in classified loans compared to at September 30, 2022
was driven by $7 million in upgrades
and $3 million in pay-offs, partially
offset by $7 million in downgrades,
consisting of various smaller commercial and industrial loans. The
decrease in classified loans when compared to at December 31,
2021 was largely attributable to pay-offs and upgrades of
classified loans acquired from Premier.
Annualized net charge-offs were 0.18% of average total loans
during the fourth quarter of 2022, compared to 0.15% in the linked
quarter, and 0.11% in the fourth quarter of 2021. Net charge-offs
were 0.16% of average total loans for 2022, compared to 0.13% for
2021.
At December 31, 2022, the allowance for credit losses
increased $0.3 million, from
$52.9 million at September 30,
2022, and decreased $10.8 million
from $64.0 million at
December 31, 2021. The ratio of the allowance for credit
losses as a percent of total loans decreased to 1.13% at
December 31, 2022, compared to 1.15% at September 30,
2022, and 1.43% at December 31, 2021. The ratio of the
allowance for credit losses as a percent of total loans includes
PPP loans that do not have an allowance for credit losses because
of the guarantee by the SBA. Excluding PPP loans, the ratio of the
allowance for credit losses as a percent of total loans would have
been 1.13% at December 31, 2022, compared to 1.15% at
September 30, 2022, and 1.54% at December 31,
2021.
Deposits:
As of December 31, 2022, period-end
total deposits were down $148.7
million, or 3%, compared to at September 30, 2022. The
decrease was primarily driven by reductions of $108.8 million in governmental deposit accounts
and $46.6 million in non-interest
bearing deposit accounts, partially offset by an increase of
$39.5 million in brokered certificate
of deposit accounts. The decrease in governmental deposit accounts
is a typical seasonal trend that occurs during the fourth quarter
of each year. The brokered certificate of deposit account balances
increased as they became a more favorable funding source in the
fourth quarter of 2022 relative to prior quarters.
Compared to December 31, 2021, period-end deposit balances
decreased $145.7 million, or 2%. The
variance was driven by decreases of (i) $113.5 million in retail certificates of
deposits, (ii) $52.0 million in total
non-interest-bearing deposit accounts and (iii) $34.1 million in money market deposit accounts,
partially offset by increases of $31.8
million in savings account deposits and $20.8 million in brokered certificate of deposit
accounts.
Average deposit balances during the fourth quarter of 2022
decreased $118.2 million, or 2%,
compared to the linked quarter and $92.7
million, or 2%, compared to the fourth quarter of
2021. For the full year of 2022, average deposit balances
grew $1.2 billion, or 24%, driven by
deposits acquired in the Premier Merger. Total demand deposit
accounts comprised 48% of total deposits at each of
December 31, 2022, September 30, 2022 and
December 31, 2021.
Stockholders' Equity:
Total stockholders' equity at
December 31, 2022 increased $24.8 million, or 3%, compared to at
September 30, 2022. This change was primarily driven
by net income of $26.8 million during the quarter and a
$7.8 million decrease in accumulated
other comprehensive loss. The change in accumulated other
comprehensive loss was the result of the changes in the market
value of available-for-sale investment securities during the
period.
Total stockholders' equity at December 31, 2022 decreased
$59.7 million, or 7%, compared
to at December 31, 2021, which was due to (i) an other
comprehensive loss of $115.5 million,
(ii) dividends paid of $42.4 million
and (iii) share repurchases of $7.4
million, partially offset by net income of $101.3 million for the full year of 2022.
The other comprehensive loss was the result of changes in the
market value of available-for-sale investment securities, which
were driven by changes in market interest rates.
At December 31, 2022, the tier 1 risk-based capital ratio
was 12.31%, compared to 12.08% at September 30, 2022 and
12.81% at December 31, 2021. The common equity tier 1
risk-based capital ratio was 12.04% at December 31, 2022,
compared to 11.80% at September 30, 2022 and 12.52% at
December 31, 2021. The total risk-based capital ratio was
13.19% at December 31, 2022, compared to 12.98% at
September 30, 2022 and 14.06% at December 31, 2021.
Peoples adopted the five-year transition to phase in the impact of
the adoption of Current Expected Credit Losses ("CECL") on
regulatory capital ratios. Compared to at September 30,
2022, these ratios improved due to higher net income. Compared to
at December 31, 2021, the capital ratios decreased due to the
Vantage acquisition.
At December 31, 2022, book value per common share and
tangible book value per common share, which excludes goodwill and
other intangible assets, were $27.76
and $16.23, respectively, compared to
$26.89 and $15.28, respectively, at September 30, 2022,
and $29.86 and $19.58, respectively, at December 31, 2021.
The ratio of total stockholders' equity to total assets increased 4
basis points when compared to September 30, 2022. The tangible
equity to tangible assets ratio, which excludes goodwill and other
intangible assets, increased 20 basis points when compared to at
September 30, 2022, due primarily to the changes in equity
noted above. Compared to at December 31, 2021, the total
stockholders' equity to total assets ratio decreased from 11.96% to
10.90%, and the tangible equity to tangible assets
ratio decreased from 8.18% to 6.67%, respectively.
Peoples Bancorp Inc. ("Peoples", Nasdaq: PEBO) is a
diversified financial services holding company and makes available
a complete line of banking, trust and investment, insurance and
premium financing solutions through its subsidiaries. Headquartered
in Marietta, Ohio since 1902,
Peoples has established a heritage of financial stability, growth
and community impact. Peoples had $7.2
billion in total assets as of December 31, 2022, and
130 locations, including 113 full-service bank branches in
Ohio, West Virginia, Kentucky, Virginia, Washington
D.C. and Maryland. Peoples
Bank has been recognized by Newsweek as one of America's Best Banks
2023 and Peoples Bank has been recognized as a Best Bank to Work
For by American Banker in 2021 and 2022.
Peoples is a member of the Russell 3000 index of U.S.
publicly-traded companies. Peoples offers services through
Peoples Bank (which includes the divisions of Peoples Investment
Services, Peoples Premium Finance and North Star Leasing), Peoples
Insurance Agency, LLC and Vantage Financial, LLC.
Conference Call to Discuss Earnings:
Peoples will conduct a facilitated conference call to discuss
fourth quarter and full year 2022 results of operations on
January 24, 2023 at 11:00 a.m., Eastern
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-US GAAP Financial Measures:
This news release contains financial information and performance
measures determined by methods other than those in accordance with
accounting principles generally accepted in the United States of America ("US
GAAP"). Management uses these "non-US GAAP" financial
measures in its analysis of Peoples' performance and the efficiency
of its operations. Management believes that these non-US 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 US
GAAP, nor are they necessarily comparable to non-US GAAP
performance measures that may be presented by other
companies. Below is a listing of the non-US GAAP financial
measures used in this news release:
- Core non-interest expense is non-US GAAP since it excludes the
impact of acquisition-related expenses, pension settlement charges,
severance expenses, COVID-19-related expenses, the contribution to
Peoples Bank Foundation, Inc. and contract negotiation (refunds)
expenses.
- 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 non-interest
income, excluding net gains and losses. This ratio is non-US GAAP
since it excludes amortization of other intangible assets and all
gains and losses included in earnings, and uses fully
tax-equivalent net interest income.
- Efficiency ratio adjusted for non-core items is calculated as
core non-interest expense (less amortization of other intangible
assets) as a percentage of fully tax-equivalent net interest income
plus total non-interest income, excluding net gains and losses.
This ratio is non-US GAAP since it excludes the impact of
acquisition-related expenses, pension settlement charges, severance
expenses, COVID-19-related expenses, the contribution to Peoples
Bank Foundation, Inc., contract negotiation (refunds) expenses, the
amortization of other intangible assets and all gains and losses
included in earnings, and uses fully tax-equivalent net interest
income.
- Tangible assets, tangible equity, tangible equity to tangible
assets ratio and tangible book value per common share measures are
non-US GAAP since they exclude the impact of goodwill and other
intangible assets acquired through acquisitions on both total
stockholders' equity and total assets.
- Total non-interest income, excluding net gains and losses, is a
non-US GAAP measure since it excludes all gains and losses included
in earnings.
- Pre-provision net revenue is defined as net interest income
plus total non-interest income, excluding net gains and losses,
minus total non-interest expense. This measure is non-US GAAP since
it excludes the provision for (recovery of) credit losses and all
gains and losses included in net income.
- Return on average assets adjusted for non-core items is
calculated as annualized net income (less the after-tax impact of
all gains and losses included in earnings, acquisition-related
expenses, pension settlement charges, severance expenses,
COVID-19-related expenses, the contribution to Peoples Bank
Foundation Inc. and contract negotiation (refunds) expenses)
divided by total average assets. This measure is non-US GAAP since
it excludes the after-tax impact of all gains and losses included
in earnings, acquisition-related expenses, pension settlement
charges, severance expenses, COVID-19-related expenses, the
contribution to Peoples Bank Foundation, Inc. and contract
negotiation (refunds) expenses.
- Return on average tangible equity is calculated as annualized
net income (less after-tax impact of amortization of other
intangible assets) divided by average tangible equity. This measure
is non-US GAAP since it excludes the after-tax impact of
amortization of other intangible assets from net income and the
impact of average goodwill and other average intangible assets
acquired through acquisitions on average stockholders' equity.
A reconciliation of these non-US GAAP financial measures to the
most directly comparable US GAAP financial measures is included at
the end of this news release under the caption of "Non-US GAAP
Financial Measures (Unaudited)."
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," "will likely," "would," "should," "could,"
"project," "goal," "target," "potential," "seek," "intend,"
"continue," "remain," 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 magnitude and
continued duration of the recovery from the COVID-19 pandemic and
its ongoing impact on the global economy and financial market
conditions and Peoples' businesses, results of operations and
financial conditions;
|
(2)
|
ongoing increasing
interest rate policies, changes in the interest rate environment
due to economic conditions related to the COVID-19 pandemic or
other factors and/or the fiscal and monetary policy measures
undertaken by the U.S. government and the Board of Governors of the
Federal Reserve System (the "Federal Reserve Board") in response to
such economic conditions, which may adversely impact interest
rates, the interest rate yield curve, interest margins, loan demand
and interest rate sensitivity;
|
(3)
|
the effects of
inflationary pressures and the impact of rising interest rates on
borrowers' liquidity and ability to repay;
|
(4)
|
the success, impact,
and timing of the implementation of Peoples' business strategies
and Peoples' ability to manage strategic initiatives, including the
completion and successful integration of planned acquisitions,
including the recently-completed Premier Merger, the
recently-completed acquisition of Vantage and the pending Limestone
Merger, and the expansion of commercial and consumer lending
activities, in light of the ongoing increasing interest rate
policies of the Federal Reserve Board;
|
(5)
|
competitive pressures
among financial institutions, or from non-financial institutions,
which may increase significantly, including product and pricing
pressures, which can in turn impact Peoples' credit spreads,
changes to third-party relationships and revenues, changes in the
manner of providing services, customer acquisition and retention
pressures, and Peoples' ability to attract, develop and retain
qualified professionals;
|
(6)
|
uncertainty regarding
the nature, timing, cost, and effect of legislative or regulatory
changes or actions, or deposit insurance premium levels,
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;
|
(7)
|
the effects of easing
restrictions on participants in the financial services
industry;
|
(8)
|
local, regional,
national and international economic conditions (including the
impact of potential or imposed tariffs, a U.S. withdrawal from or
significant renegotiation of trade agreements, trade wars and other
changes in trade regulations, and changes in the relationship of
the U.S. and U.S. global trading partners) and the impact these
conditions may have on Peoples, Peoples' customers and Peoples'
counterparties, and Peoples' assessment of the impact, which may be
different than anticipated;
|
(9)
|
Peoples may issue
equity securities in connection with future acquisitions, including
the pending Limestone Merger, which could cause ownership and
economic dilution to Peoples' current shareholders;
|
(10)
|
changes in prepayment
speeds, loan originations, levels of nonperforming assets,
delinquent loans, charge-offs, and customer and other
counterparties' performance and creditworthiness generally, which
may be less favorable than expected in light of recent inflationary
pressures and adversely impact the amount of interest income
generated;
|
(11)
|
Peoples may have more
credit risk and higher credit losses to the extent there are loan
concentrations by location or industry of borrowers or
collateral;
|
(12)
|
future credit quality
and performance, including expectations regarding future credit
losses and the allowance for credit losses;
|
(13)
|
changes in accounting
standards, policies, estimates or procedures may adversely affect
Peoples' reported financial condition or results of
operations;
|
(14)
|
the impact of
assumptions, estimates and inputs used within models, which may
vary materially from actual outcomes, including under the CECL
model;
|
(15)
|
the replacement of the
London Interbank Offered Rate ("LIBOR") with other reference rates
which may result in increased expenses and litigation, and
adversely impact the effectiveness of hedging
strategies;
|
(16)
|
adverse changes in the
conditions and trends in the financial markets, including recent
inflationary pressures, 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;
|
(17)
|
the volatility from
quarter to quarter of mortgage banking income, whether due to
interest rates, demand, the fair value of mortgage loans, or other
factors;
|
(18)
|
Peoples' ability to
receive dividends from Peoples' subsidiaries;
|
(19)
|
Peoples' ability to
maintain required capital levels and adequate sources of funding
and liquidity;
|
(20)
|
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;
|
(21)
|
Peoples' ability to
secure confidential information and deliver products and services
through the use of computer systems and telecommunications
networks, including those of Peoples' third-party vendors and other
service providers, which may prove inadequate, and could adversely
affect customer confidence in Peoples and/or result in Peoples
incurring a financial loss;
|
(22)
|
Peoples' ability to
anticipate and respond to technological changes, and Peoples'
reliance on, and the potential failure of, a number of third-party
vendors to perform as expected, including Peoples' primary core
banking system provider, which can impact Peoples' ability to
respond to customer needs and meet competitive demands;
|
(23)
|
operational issues
stemming from and/or capital spending necessitated by the potential
need to adapt to industry changes in information technology systems
on which Peoples and Peoples' subsidiaries are highly
dependent;
|
(24)
|
changes in consumer
spending, borrowing and saving habits, whether due to changes in
retail distribution strategies, consumer preferences and behavior,
changes in business and economic conditions, legislative or
regulatory initiatives, or other factors, which may be different
than anticipated;
|
(25)
|
the adequacy of
Peoples' internal controls and risk management program in the event
of changes in strategic, reputational, market, economic,
operational, cybersecurity, compliance, legal, asset/liability
repricing, liquidity, credit and interest rate risks associated
with Peoples' business;
|
(26)
|
the impact on Peoples'
businesses, personnel, facilities, or systems, of losses related to
acts of fraud, theft, misappropriation or violence;
|
(27)
|
the impact on Peoples'
businesses, as well as on the risks described above, of various
domestic or international widespread natural or other disasters,
pandemics, cybersecurity attacks, system failures, civil unrest,
military or terrorist activities or international
conflicts;
|
(28)
|
the potential further
deterioration of the U.S. economy due to financial, political or
other shocks;
|
(29)
|
the potential influence
on the U.S. financial markets and economy from the effects of
climate change;
|
(30)
|
the impact on Peoples'
businesses and operating results of any costs associated with
obtaining rights in intellectual property claimed by others and
adequately protecting Peoples' intellectual property;
|
(31)
|
risks and uncertainties
associated with Peoples' entry into new geographic markets and
risks resulting from Peoples' inexperience in these new geographic
markets;
|
(32)
|
Peoples' ability to
integrate the NSL and Vantage acquisitions, the Premier Merger, and
the pending Limestone Merger, which may be unsuccessful, or may be
more difficult, time-consuming or costly than expected;
|
(33)
|
the risk that expected
revenue synergies and cost savings from the Premier Merger or the
pending Limestone Merger, may not be fully realized or realized
within the expected time frame;
|
(34)
|
changes in laws or
regulations imposed by Peoples' regulators impacting Peoples'
capital actions, including dividend payments and share
repurchases;
|
(35)
|
the effect of a fall in
stock market prices on the asset and wealth management
business;
|
(36)
|
Peoples' continued
ability to grow deposits; and
|
(37)
|
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, 2021, under the heading "ITEM 1A. RISK FACTORS" in
Part II of Peoples' Quarterly Report on Form 10-Q for the quarterly
period ended March 31, 2022, and under the heading "ITEM 1A. RISK
FACTORS" in Part II of Peoples' Quarterly Report on Form 10-Q for
the quarterly period ended September 30, 2022. 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
December 31, 2022 consolidated financial statements as part of
its Annual Report on Form 10-K 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 (Unaudited)
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
December
31,
|
|
September
30,
|
|
December
31,
|
|
December
31,
|
|
2022
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
PER COMMON
SHARE(a):
|
|
|
|
|
|
|
|
|
|
Earnings per common
share:
|
|
|
|
|
|
|
|
|
|
Basic
|
$
0.96
|
|
$
0.93
|
|
$
0.99
|
|
$
3.61
|
|
$
2.17
|
Diluted
|
0.95
|
|
0.92
|
|
0.98
|
|
3.60
|
|
2.15
|
Cash dividends declared
per common share
|
0.38
|
|
0.38
|
|
0.36
|
|
1.50
|
|
1.43
|
Book value per common
share (b)
|
27.76
|
|
26.89
|
|
29.86
|
|
27.76
|
|
29.86
|
Tangible book value per
common share (b)(c)
|
16.23
|
|
15.28
|
|
19.58
|
|
16.23
|
|
19.58
|
Closing price of common
shares at end of period
|
$
28.25
|
|
$
28.93
|
|
$
31.81
|
|
$
28.25
|
|
$
31.81
|
|
|
|
|
|
|
|
|
|
|
SELECTED RATIOS
(a):
|
|
|
|
|
|
|
|
|
|
Return on average
stockholders' equity (d)
|
13.86 %
|
|
12.92 %
|
|
13.16 %
|
|
12.69 %
|
|
7.24 %
|
Return on average
tangible equity (d)(e)
|
25.56 %
|
|
23.36 %
|
|
21.32 %
|
|
22.60 %
|
|
12.16 %
|
Return on average
assets (d)
|
1.51 %
|
|
1.45 %
|
|
1.55 %
|
|
1.43 %
|
|
0.84 %
|
Return on average
assets adjusted for non-core items (d)(f)
|
1.56 %
|
|
1.47 %
|
|
1.52 %
|
|
1.47 %
|
|
1.19 %
|
Efficiency ratio
(g)
|
56.74 %
|
|
57.20 %
|
|
62.69 %
|
|
59.59 %
|
|
73.60 %
|
Efficiency ratio
adjusted for non-core items (h)
|
55.91 %
|
|
56.64 %
|
|
61.51 %
|
|
58.59 %
|
|
63.47 %
|
Pre-provision net
revenue to total average assets (d)(i)
|
2.06 %
|
|
1.96 %
|
|
1.43 %
|
|
1.77 %
|
|
1.02 %
|
Net interest margin
(d)(j)
|
4.44 %
|
|
4.17 %
|
|
3.37 %
|
|
3.97 %
|
|
3.40 %
|
Dividend payout ratio
(k)
|
40.02 %
|
|
41.39 %
|
|
36.68 %
|
|
41.89 %
|
|
65.54 %
|
(a)
|
Reflects the impact of
the acquisition of NSL beginning April 1, 2021, of the Premier
Merger beginning September 17, 2021, and of the acquisition of
Vantage beginning March 7, 2022.
|
(b)
|
Data presented as of
the end of the period indicated.
|
(c)
|
Tangible book value per
common share represents a non-US 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 under the caption of
"Non-US GAAP Financial Measures (Unaudited)."
|
(d)
|
Ratios are presented on
an annualized basis.
|
(e)
|
Return on average
tangible equity represents a non-US GAAP financial measure since it
excludes the after-tax impact of amortization of other intangible
assets from net income and it excludes the balance sheet impact of
average goodwill and other intangible assets acquired through
acquisitions on average stockholders' equity. Additional
information regarding the calculation of this ratio is included at
the end of this news release under the caption of "Non-US GAAP
Financial Measures (Unaudited)."
|
(f)
|
Return on average
assets adjusted for non-core items represents a non-US GAAP
financial measure since it excludes the after-tax impact of all
gains and losses included in earnings, acquisition-related
expenses, pension settlement charges, severance expenses,
COVID-19-related expenses, the contribution to Peoples Bank
Foundation, Inc. and contract negotiation (refunds) expenses.
Additional information regarding the calculation of this ratio is
included at the end of this news release under the caption of
"Non-US GAAP Financial Measures (Unaudited)."
|
(g)
|
The efficiency ratio is
defined as total non-interest expense (less amortization of other
intangible assets) as a percentage of fully tax-equivalent net
interest income plus total non-interest income (excluding all gains
and losses). This ratio represents a non-US GAAP financial
measure since it excludes amortization of other intangible assets,
and all gains and losses included in earnings, 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 under the caption of "Non-US GAAP Financial
Measures (Unaudited)."
|
(h)
|
The efficiency ratio
adjusted for non-core items is defined as core non-interest expense
(less amortization of other intangible assets) as a percentage of
fully tax-equivalent net interest income plus total non-interest
income (excluding all gains and losses). This ratio represents a
non-US GAAP financial measure since it excludes the impact of all
gains and losses, acquisition-related expenses, pension settlement
charges, severance expenses, COVID-19-related expenses, the
contribution to Peoples Bank Foundation, Inc. and contract
negotiation (refunds) expenses included in earnings, 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 under the caption of "Non-US GAAP Financial
Measures (Unaudited)."
|
(i)
|
Pre-provision net
revenue is defined as net interest income plus total non-interest
income (excluding all gains and losses) minus total non-interest
expense. This measure represents a non-US GAAP financial
measure since it excludes the provision for (recovery of) credit
losses and all gains and losses included in net income. 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 under the caption of "Non-US GAAP Financial Measures
(Unaudited)."
|
(j)
|
Information presented
on a fully tax-equivalent basis, using a 23.3% blended corporate
income tax rate for all 2022 periods and a 22.3% blended corporate
income tax rate for the 2021 periods.
|
(k)
|
This ratio, when
applicable, is calculated based on dividends declared during the
period divided by net income for the period.
|
CONSOLIDATED
STATEMENTS OF INCOME
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
December
31,
|
|
September
30,
|
|
December
31,
|
|
December
31,
|
|
2022
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
(Dollars in
thousands, except per share data)
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
Total interest
income
|
$
76,202
|
|
$
70,871
|
|
$
57,563
|
|
$
269,554
|
|
$
184,789
|
Total interest
expense
|
5,589
|
|
3,820
|
|
2,826
|
|
16,112
|
|
12,236
|
Net interest
income
|
70,613
|
|
67,051
|
|
54,737
|
|
253,442
|
|
172,553
|
Provision for (recovery
of) credit losses
|
2,301
|
|
1,776
|
|
(6,602)
|
|
(3,510)
|
|
731
|
Net interest income
after provision for (recovery of)
credit losses
|
68,312
|
|
65,275
|
|
61,339
|
|
256,952
|
|
171,822
|
|
|
|
|
|
|
|
|
|
|
Non-interest
income:
|
|
|
|
|
|
|
|
|
|
Electronic banking
income
|
5,161
|
|
5,261
|
|
5,355
|
|
21,094
|
|
18,010
|
Trust and investment
income
|
3,915
|
|
3,954
|
|
4,233
|
|
16,391
|
|
16,456
|
Deposit account service
charges
|
3,766
|
|
3,833
|
|
3,565
|
|
14,583
|
|
10,143
|
Insurance
income
|
3,732
|
|
3,618
|
|
3,329
|
|
15,727
|
|
15,252
|
Lease income
|
1,336
|
|
1,725
|
|
577
|
|
4,267
|
|
1,293
|
Bank owned life
insurance income
|
702
|
|
694
|
|
438
|
|
2,624
|
|
1,767
|
Net (loss) gain on
asset disposals and other transactions
|
(302)
|
|
(35)
|
|
952
|
|
(616)
|
|
493
|
Mortgage banking
income
|
281
|
|
328
|
|
713
|
|
1,397
|
|
3,439
|
Net (loss) gain on
investment securities
|
(168)
|
|
21
|
|
(158)
|
|
(61)
|
|
(862)
|
Other non-interest
income
|
611
|
|
967
|
|
811
|
|
3,430
|
|
2,894
|
Total
non-interest income
|
19,034
|
|
20,366
|
|
19,815
|
|
78,836
|
|
68,885
|
|
|
|
|
|
|
|
|
|
|
Non-interest
expense:
|
|
|
|
|
|
|
|
|
|
Salaries and employee
benefit costs
|
28,758
|
|
28,618
|
|
26,336
|
|
112,690
|
|
94,612
|
Data processing and
software expense
|
5,013
|
|
3,279
|
|
3,148
|
|
14,241
|
|
10,542
|
Net occupancy and
equipment expense
|
4,847
|
|
4,813
|
|
4,751
|
|
19,516
|
|
14,918
|
Professional
fees
|
3,310
|
|
2,832
|
|
2,324
|
|
12,094
|
|
15,783
|
Amortization of other
intangible assets
|
1,998
|
|
2,023
|
|
1,508
|
|
7,763
|
|
4,775
|
Electronic banking
expense
|
1,097
|
|
2,648
|
|
2,879
|
|
9,231
|
|
8,885
|
Other loan
expenses
|
947
|
|
511
|
|
558
|
|
2,735
|
|
2,001
|
FDIC insurance
expense
|
781
|
|
709
|
|
380
|
|
3,702
|
|
1,976
|
Marketing
expense
|
737
|
|
1,136
|
|
848
|
|
3,728
|
|
3,658
|
Communication
expense
|
611
|
|
599
|
|
578
|
|
2,484
|
|
1,657
|
Franchise tax
expense
|
546
|
|
1,075
|
|
870
|
|
3,487
|
|
3,357
|
Other non-interest
expense
|
4,721
|
|
4,010
|
|
3,811
|
|
15,476
|
|
21,573
|
Total
non-interest expense
|
53,366
|
|
52,253
|
|
47,991
|
|
207,147
|
|
183,737
|
Income before
income taxes
|
33,980
|
|
33,388
|
|
33,163
|
|
128,641
|
|
56,970
|
Income tax
expense
|
7,131
|
|
7,410
|
|
5,416
|
|
27,349
|
|
9,415
|
Net
income
|
$
26,849
|
|
$
25,978
|
|
$
27,747
|
|
$
101,292
|
|
$
47,555
|
|
|
|
|
|
|
|
|
|
|
PER COMMON SHARE
DATA:
|
|
|
|
|
|
|
|
|
|
Earnings per common
share – basic
|
$
0.96
|
|
$
0.93
|
|
$
0.99
|
|
$
3.61
|
|
$
2.17
|
Earnings per common
share – diluted
|
$
0.95
|
|
$
0.92
|
|
$
0.98
|
|
$
3.60
|
|
$
2.15
|
Cash dividends declared
per common share
|
$
0.38
|
|
$
0.38
|
|
$
0.36
|
|
$
1.50
|
|
$
1.43
|
|
|
|
|
|
|
|
|
|
|
Weighted-average common
shares outstanding – basic
|
27,843,203
|
|
27,865,416
|
|
27,942,794
|
|
27,908,022
|
|
21,816,511
|
Weighted-average common
shares outstanding – diluted
|
27,981,656
|
|
27,973,255
|
|
28,114,980
|
|
27,999,602
|
|
21,959,883
|
Common shares
outstanding at the end of period
|
28,287,837
|
|
28,278,078
|
|
28,297,771
|
|
28,287,837
|
|
28,297,771
|
CONSOLIDATED BALANCE
SHEETS
|
|
|
December
31,
|
|
2022
|
|
2021
|
(Dollars in
thousands)
|
(Unaudited)
|
|
|
Assets
|
|
|
|
Cash and cash
equivalents:
|
|
|
|
Cash and due
from banks
|
$
94,679
|
|
$
74,354
|
Interest-bearing
deposits in other banks
|
59,343
|
|
341,373
|
Total cash and cash equivalents
|
154,022
|
|
415,727
|
Available-for-sale
investment securities, at fair value (amortized cost of
|
|
|
|
$1,300,719 at
December 31, 2022 and $1,283,146 at December 31, 2021)
(a)
|
1,131,399
|
|
1,275,493
|
Held-to-maturity
investment securities, at amortized cost (fair value of
|
|
|
|
$479,896 at
December 31, 2022 and $369,955 at December 31, 2021)
(a)
|
560,212
|
|
374,129
|
Other investment
securities, at cost
|
51,609
|
|
33,987
|
Total investment securities (a)
|
1,743,220
|
|
1,683,609
|
Loans and leases, net
of deferred fees and costs (b)
|
4,707,150
|
|
4,481,600
|
Allowance for credit
losses
|
(53,162)
|
|
(63,967)
|
Net
loans
|
4,653,988
|
|
4,417,633
|
Loans held for
sale
|
2,140
|
|
3,791
|
Bank premises and
equipment, net of accumulated depreciation
|
82,934
|
|
89,260
|
Bank owned life
insurance
|
105,292
|
|
73,358
|
Goodwill
|
292,397
|
|
264,193
|
Other intangible
assets
|
33,932
|
|
26,816
|
Other assets
|
139,379
|
|
89,134
|
Total assets
|
$
7,207,304
|
|
$
7,063,521
|
Liabilities
|
|
|
|
Deposits:
|
|
|
|
Non-interest-bearing
|
$
1,589,402
|
|
$
1,641,422
|
Interest-bearing
|
4,127,539
|
|
4,221,130
|
Total deposits
|
5,716,941
|
|
5,862,552
|
Short-term
borrowings
|
500,138
|
|
166,482
|
Long-term
borrowings
|
101,093
|
|
99,475
|
Accrued expenses and
other liabilities
|
103,804
|
|
89,987
|
Total liabilities
|
$
6,421,976
|
|
$
6,218,496
|
|
|
|
|
Stockholders'
Equity
|
|
|
|
Preferred stock, no par
value, 50,000 shares authorized, no shares issued at
December 31, 2022 and
December 31, 2021
|
—
|
|
—
|
Common stock, no par
value, 50,000,000 shares authorized, 29,857,920 shares issued at
December 31, 2022
and 29,814,401 shares issued at
December 31, 2021, including shares in treasury
|
686,450
|
|
686,282
|
Retained
earnings
|
265,936
|
|
207,076
|
Accumulated other
comprehensive loss, net of deferred income taxes
|
(127,136)
|
|
(11,619)
|
Treasury stock, at
cost, 1,643,461 shares at December 31, 2022 and 1,577,359
shares at December 31, 2021
|
(39,922)
|
|
(36,714)
|
Total stockholders' equity
|
785,328
|
|
845,025
|
Total liabilities and stockholders' equity
|
$
7,207,304
|
|
$
7,063,521
|
(a)
|
Available-for-sale
investment securities and held-to-maturity investment securities
are presented net of allowance for credit losses of $0 and $241,
respectively, as of December 31, 2022 and $0 and $286,
respectively, as of December 31, 2021.
|
(b)
|
Also referred to
throughout this document as "total loans" and "loans held for
investment."
|
SELECTED FINANCIAL
INFORMATION (Unaudited)
|
|
|
December
31,
|
September
30,
|
June
30,
|
March
31,
|
December
31,
|
(Dollars in
thousands)
|
2022
|
2022
|
2022
|
2022
|
2021
|
Loan
Portfolio
|
|
|
|
|
|
Construction
|
$
246,941
|
$
215,621
|
$
202,588
|
$
238,305
|
$
210,232
|
Commercial real estate,
other
|
1,423,518
|
1,423,479
|
1,460,023
|
1,457,232
|
1,550,081
|
Commercial and
industrial
|
892,634
|
877,472
|
858,452
|
887,151
|
891,392
|
Premium
finance
|
159,197
|
167,682
|
152,237
|
145,813
|
136,136
|
Leases
|
345,131
|
312,847
|
314,522
|
267,068
|
122,508
|
Residential real
estate
|
723,360
|
733,361
|
743,005
|
756,429
|
771,718
|
Home equity lines of
credit
|
177,858
|
174,525
|
169,335
|
162,288
|
163,593
|
Consumer,
indirect
|
629,426
|
592,309
|
563,088
|
524,778
|
530,532
|
Consumer,
direct
|
108,363
|
113,314
|
111,804
|
107,390
|
104,652
|
Deposit account
overdrafts
|
722
|
597
|
851
|
699
|
756
|
Total loans
|
$
4,707,150
|
$
4,611,207
|
$ 4,575,905
|
$ 4,547,153
|
$ 4,481,600
|
Total acquired loans
(a)(b)
|
$
1,108,728
|
$
1,186,069
|
$ 1,304,633
|
$ 1,400,336
|
$ 1,430,810
|
Total originated loans
|
$
3,598,422
|
$
3,425,138
|
$ 3,271,272
|
$ 3,146,817
|
$ 3,050,790
|
Deposit Balances
(a)
|
|
|
|
|
|
Non-interest-bearing
deposits (c)
|
$
1,589,402
|
$
1,635,953
|
$ 1,661,865
|
$ 1,666,668
|
$ 1,641,422
|
Interest-bearing
deposits:
|
|
|
|
|
|
Interest-bearing
demand accounts (c)
|
1,160,182
|
1,162,012
|
1,143,010
|
1,179,199
|
1,167,460
|
Retail
certificates of deposit
|
530,236
|
544,741
|
584,259
|
612,936
|
643,759
|
Money market
deposit accounts
|
617,029
|
624,708
|
645,242
|
656,266
|
651,169
|
Governmental
deposit accounts
|
625,965
|
734,734
|
728,057
|
734,784
|
617,259
|
Savings
accounts
|
1,068,547
|
1,077,383
|
1,080,053
|
1,065,678
|
1,036,738
|
Brokered
deposits
|
125,580
|
86,089
|
86,739
|
87,395
|
104,745
|
Total interest-bearing deposits
|
$
4,127,539
|
$
4,229,667
|
$ 4,267,360
|
$ 4,336,258
|
$ 4,221,130
|
Total deposits
|
$
5,716,941
|
$
5,865,620
|
$ 5,929,225
|
$ 6,002,926
|
$ 5,862,552
|
Total demand deposits
(c)
|
$
2,749,584
|
$
2,797,965
|
$ 2,804,875
|
$ 2,845,867
|
$ 2,808,882
|
Asset Quality
(a)
|
|
|
|
|
|
Nonperforming assets
(NPAs):
|
|
|
|
|
|
Loans 90+ days
past due and accruing
|
$
4,842
|
$
8,424
|
$
8,236
|
$
5,959
|
$
3,723
|
Nonaccrual
loans
|
31,473
|
27,831
|
29,488
|
32,003
|
34,765
|
Total nonperforming loans (NPLs) (g)
|
36,315
|
36,255
|
37,724
|
37,962
|
38,488
|
Other real
estate owned (OREO)
|
8,895
|
8,840
|
9,210
|
9,407
|
9,496
|
Total NPAs
|
$
45,210
|
$
45,095
|
$
46,934
|
$
47,369
|
$
47,984
|
Criticized loans
(d)
|
$
191,355
|
$
164,775
|
$
181,395
|
$
190,315
|
$
194,016
|
Classified loans
(e)
|
89,604
|
94,848
|
115,483
|
109,530
|
106,547
|
Allowance for credit
losses as a percent of NPLs (g)
|
146.39 %
|
145.82 %
|
138.76 %
|
144.27 %
|
166.20 %
|
NPLs as a percent of
total loans (g)
|
0.77 %
|
0.79 %
|
0.82 %
|
0.83 %
|
0.86 %
|
NPAs as a percent of
total assets (g)
|
0.63 %
|
0.64 %
|
0.64 %
|
0.65 %
|
0.68 %
|
NPAs as a percent of
total loans and OREO (g)
|
0.96 %
|
0.98 %
|
1.02 %
|
1.04 %
|
1.07 %
|
Criticized loans as a
percent of total loans (d)
|
4.07 %
|
3.57 %
|
3.96 %
|
4.19 %
|
4.33 %
|
Classified loans as a
percent of total loans (e)
|
1.90 %
|
2.06 %
|
2.52 %
|
2.41 %
|
2.38 %
|
Allowance for credit
losses as a percent of total loans
|
1.13 %
|
1.15 %
|
1.14 %
|
1.20 %
|
1.43 %
|
Capital Information
(a)(f)(h)(j)
|
|
|
|
|
|
Common equity tier 1
capital ratio (i)
|
12.04 %
|
11.80 %
|
11.62 %
|
11.51 %
|
12.52 %
|
Tier 1 risk-based
capital ratio
|
12.31 %
|
12.08 %
|
11.91 %
|
11.80 %
|
12.81 %
|
Total risk-based
capital ratio (tier 1 and tier 2)
|
13.19 %
|
12.98 %
|
12.81 %
|
12.78 %
|
14.06 %
|
Leverage
ratio
|
8.92 %
|
8.64 %
|
8.38 %
|
8.29 %
|
8.67 %
|
Common equity tier 1
capital
|
$
604,566
|
$
584,880
|
$
564,708
|
$
547,215
|
$
577,565
|
Tier 1
capital
|
618,354
|
598,633
|
578,425
|
560,897
|
591,215
|
Total capital (tier 1
and tier 2)
|
662,421
|
643,189
|
622,516
|
607,493
|
648,948
|
Total risk-weighted
assets
|
$
5,022,192
|
$
4,955,627
|
$ 4,857,818
|
$ 4,752,428
|
$ 4,614,258
|
Total stockholders'
equity to total assets
|
10.90 %
|
10.86 %
|
10.81 %
|
11.17 %
|
11.96 %
|
Tangible equity to
tangible assets (k)
|
6.67 %
|
6.47 %
|
6.60 %
|
6.76 %
|
8.18 %
|
(a)
|
Reflects the impact of
the acquisition of NSL beginning April 1, 2021, the Premier Merger
beginning September 17, 2021, and the acquisition of Vantage
beginning March 7, 2022.
|
(b)
|
Includes all loans and
leases acquired and purchased in 2012 and thereafter.
|
(c)
|
The sum of
non-interest-bearing deposits and interest-bearing deposits is
considered total demand deposits.
|
(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)
|
December 31, 2022 data
based on preliminary analysis and subject to revision.
|
(i)
|
Peoples' capital
conservation buffer was 5.19% at December 31, 2022, 4.98% at
September 30, 2022, 4.81% at June 30, 2022, 4.78% at March 31,
2022, and 6.5% at December 31, 2021, compared to required capital
conservation buffer of 2.50%
|
(j)
|
Peoples has adopted the
five-year transition to phase in the impact of the adoption of CECL
on regulatory capital ratios.
|
(k)
|
This ratio represents a
non-US 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 under the caption of "Non-US GAAP
Financial Measures (Unaudited)."
|
PROVISION FOR
(RECOVERY OF) CREDIT LOSSES INFORMATION
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
December
31,
|
|
September
30,
|
|
December
31,
|
|
December
31,
|
|
2022
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
(Dollars in
thousands)
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
Provision for
(recovery of) credit losses
|
|
|
|
|
|
|
|
|
|
Provision for (recovery
of) credit losses
|
$
2,023
|
|
$
1,613
|
|
$
(6,786)
|
|
$
(4,560)
|
|
$
339
|
Provision for checking
account overdrafts
|
278
|
|
218
|
|
184
|
|
1,050
|
|
392
|
Total provision
for (recovery of) credit losses
|
$
2,301
|
|
$
1,831
|
|
$
(6,602)
|
|
$
(3,510)
|
|
$
731
|
|
|
|
|
|
|
|
|
|
|
Net
Charge-Offs
|
|
|
|
|
|
|
|
|
|
Gross
charge-offs
|
$
2,481
|
|
$
1,990
|
|
$
1,767
|
|
$
8,755
|
|
$
5,988
|
Recoveries
|
348
|
|
302
|
|
491
|
|
1,483
|
|
1,295
|
Net
charge-offs
|
$
2,133
|
|
$
1,688
|
|
$
1,276
|
|
$
7,272
|
|
$
4,693
|
|
|
|
|
|
|
|
|
|
|
Net Charge-Offs
(Recoveries) by Type
|
|
|
|
|
|
|
|
|
|
Construction
|
$
16
|
|
$
—
|
|
$
—
|
|
$
16
|
|
$
—
|
Commercial real estate,
other
|
$
99
|
|
18
|
|
30
|
|
192
|
|
183
|
Commercial and
industrial
|
(16)
|
|
33
|
|
101
|
|
894
|
|
1,031
|
Premium
finance
|
38
|
|
37
|
|
15
|
|
111
|
|
45
|
Leases
|
807
|
|
632
|
|
369
|
|
2,165
|
|
1,095
|
Residential real
estate
|
124
|
|
132
|
|
32
|
|
584
|
|
242
|
Home equity lines of
credit
|
26
|
|
5
|
|
1
|
|
43
|
|
156
|
Consumer,
indirect
|
711
|
|
529
|
|
524
|
|
1,905
|
|
1,503
|
Consumer,
direct
|
70
|
|
72
|
|
(2)
|
|
316
|
|
40
|
Deposit account
overdrafts
|
258
|
|
230
|
|
206
|
|
1,046
|
|
398
|
Total net
charge-offs
|
$
2,133
|
|
$
1,688
|
|
$
1,276
|
|
$
7,272
|
|
$
4,693
|
|
|
|
|
|
|
|
|
|
|
As a percent of average
total loans (annualized)
|
0.18 %
|
|
0.15 %
|
|
0.11 %
|
|
0.16 %
|
|
0.13 %
|
SUPPLEMENTAL
INFORMATION (Unaudited)
|
|
|
December
31,
|
|
September
30,
|
|
June
30,
|
|
March
31,
|
|
December
31,
|
(Dollars in
thousands)
|
2022
|
|
2022
|
|
2022
|
|
2022
|
|
2021
|
|
|
|
|
|
|
|
|
|
|
Trust assets under
administration and management
|
$
1,764,639
|
|
$
1,682,334
|
|
$
1,731,454
|
|
$
1,927,828
|
|
$
2,009,871
|
Brokerage assets under
administration and management
|
1,211,868
|
|
1,127,831
|
|
1,068,261
|
|
1,152,530
|
|
1,183,927
|
Mortgage loans serviced
for others
|
392,364
|
|
400,736
|
|
410,007
|
|
420,024
|
|
430,597
|
Employees (full-time
equivalent)
|
1,267
|
|
1,244
|
|
1,261
|
|
1,245
|
|
1,188
|
CONSOLIDATED AVERAGE
BALANCE SHEETS AND NET INTEREST INCOME (Unaudited)
|
|
|
Three Months
Ended
|
|
December 31,
2022
|
|
September 30,
2022
|
|
December 31,
2021
|
(Dollars in
thousands)
|
Balance
|
Income/
Expense
|
Yield/
Cost
|
|
Balance
|
Income/
Expense
|
Yield/
Cost
|
|
Balance
|
Income/
Expense
|
Yield/
Cost
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
Short-term
investments
|
$
44,421
|
$
404
|
3.61 %
|
|
$
159,522
|
$ 847
|
2.11 %
|
|
$
350,692
|
$ 138
|
0.16 %
|
Investment securities
(a)(b)
|
1,652,742
|
9,741
|
2.35 %
|
|
1,685,134
|
9,009
|
2.13 %
|
|
1,669,457
|
6,874
|
1.65 %
|
Loans
(b)(c):
|
|
|
|
|
|
|
|
|
|
|
|
Construction
|
234,233
|
3,596
|
6.01 %
|
|
222,966
|
2,765
|
4.85 %
|
|
200,009
|
1,961
|
3.84 %
|
Commercial real estate,
other
|
1,293,500
|
18,431
|
5.58 %
|
|
1,300,173
|
16,593
|
4.99 %
|
|
1,450,566
|
15,370
|
4.15 %
|
Commercial and
industrial
|
885,111
|
13,455
|
5.95 %
|
|
865,436
|
11,140
|
5.04 %
|
|
865,519
|
8,548
|
3.86 %
|
Premium
finance
|
161,382
|
1,898
|
4.60 %
|
|
162,057
|
1,949
|
4.71 %
|
|
134,023
|
1,735
|
5.07 %
|
Leases
|
325,113
|
8,448
|
10.17 %
|
|
307,459
|
9,628
|
12.25 %
|
|
112,694
|
4,547
|
15.79 %
|
Residential real estate
(d)
|
853,354
|
9,321
|
4.37 %
|
|
869,444
|
9,439
|
4.34 %
|
|
925,316
|
9,937
|
4.30 %
|
Home equity lines of
credit
|
177,778
|
2,723
|
6.08 %
|
|
173,032
|
2,217
|
5.08 %
|
|
164,851
|
1,772
|
4.26 %
|
Consumer,
indirect
|
612,696
|
6,834
|
4.43 %
|
|
576,826
|
5,907
|
4.06 %
|
|
539,176
|
5,455
|
4.01 %
|
Consumer,
direct
|
113,045
|
1,763
|
6.19 %
|
|
113,609
|
1,764
|
6.16 %
|
|
107,780
|
1,605
|
5.91 %
|
Total loans
|
4,656,212
|
66,469
|
5.62 %
|
|
4,591,002
|
61,402
|
5.26 %
|
|
4,499,934
|
50,930
|
4.46 %
|
Allowance for credit
losses
|
(52,253)
|
|
|
|
(52,719)
|
|
|
|
(75,488)
|
|
|
Net loans
|
4,603,959
|
|
|
|
4,538,283
|
|
|
|
4,424,446
|
|
|
Total earning
assets
|
6,301,122
|
76,614
|
4.79 %
|
|
6,382,939
|
71,258
|
4.40 %
|
|
6,444,595
|
57,942
|
3.55 %
|
|
|
|
|
|
|
|
|
|
|
|
|
Goodwill and other
intangible
assets
|
327,377
|
|
|
|
329,482
|
|
|
|
298,276
|
|
|
Other assets
|
438,694
|
|
|
|
411,687
|
|
|
|
356,004
|
|
|
Total assets
|
$
7,067,193
|
|
|
|
$ 7,124,108
|
|
|
|
$ 7,098,875
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Equity
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
deposits:
|
|
|
|
|
|
|
|
|
|
|
|
Savings
accounts
|
$
1,069,646
|
$
138
|
0.05 %
|
|
$ 1,079,580
|
$ 139
|
0.05 %
|
|
$ 1,021,821
|
$
33
|
0.01 %
|
Governmental deposit
accounts
|
688,815
|
710
|
0.41 %
|
|
741,836
|
543
|
0.29 %
|
|
648,013
|
433
|
0.27 %
|
Interest-bearing demand
accounts
|
1,152,709
|
186
|
0.06 %
|
|
1,158,970
|
190
|
0.07 %
|
|
1,159,995
|
98
|
0.03 %
|
Money market deposit
accounts
|
615,460
|
522
|
0.34 %
|
|
623,144
|
292
|
0.19 %
|
|
637,681
|
96
|
0.06 %
|
Retail certificates of
deposit (e)
|
534,145
|
717
|
0.53 %
|
|
560,532
|
644
|
0.46 %
|
|
665,513
|
898
|
0.54 %
|
Brokered deposits
(e)
|
87,934
|
515
|
2.32 %
|
|
86,524
|
508
|
2.33 %
|
|
105,364
|
571
|
2.15 %
|
Total interest-bearing
deposits
|
4,148,709
|
2,788
|
0.27 %
|
|
4,250,586
|
2,316
|
0.22 %
|
|
4,238,387
|
2,129
|
0.20 %
|
Short-term
borrowings
|
278,188
|
1,669
|
2.38 %
|
|
202,765
|
393
|
0.77 %
|
|
181,348
|
258
|
0.56 %
|
Long-term
borrowings
|
101,596
|
1,132
|
4.45 %
|
|
111,882
|
1,111
|
3.97 %
|
|
99,622
|
439
|
1.75 %
|
Total borrowed
funds
|
379,784
|
2,801
|
2.93 %
|
|
314,647
|
1,504
|
1.91 %
|
|
280,970
|
697
|
0.99 %
|
Total interest-bearing
liabilities
|
4,528,493
|
5,589
|
0.49 %
|
|
4,565,233
|
3,820
|
0.33 %
|
|
4,519,357
|
2,826
|
0.25 %
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest-bearing
deposits
|
1,639,580
|
|
|
|
1,655,888
|
|
|
|
1,642,577
|
|
|
Other
liabilities
|
130,470
|
|
|
|
105,128
|
|
|
|
100,144
|
|
|
Total
liabilities
|
6,298,543
|
|
|
|
6,326,249
|
|
|
|
6,262,078
|
|
|
Stockholders'
equity
|
768,650
|
|
|
|
797,859
|
|
|
|
836,797
|
|
|
Total liabilities and
stockholders' equity
|
$
7,067,193
|
|
|
|
$ 7,124,108
|
|
|
|
$ 7,098,875
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income/spread (b)
|
|
$
71,025
|
4.30 %
|
|
|
$
67,438
|
4.07 %
|
|
|
$
55,116
|
3.30 %
|
Net interest margin
(b)
|
|
|
4.44 %
|
|
|
|
4.17 %
|
|
|
|
3.37 %
|
CONSOLIDATED AVERAGE
BALANCE SHEETS AND NET INTEREST INCOME (Unaudited) --
(Continued)
|
|
|
|
Year
Ended
|
|
|
December 31,
2022
|
|
December 31,
2021
|
|
(Dollars in
thousands)
|
Balance
|
Income/
Expense
|
Yield/
Cost
|
|
Balance
|
Income/
Expense
|
Yield/
Cost
|
|
Assets
|
|
|
|
|
|
|
|
|
Short-term
investments
|
$
178,781
|
$
1,710
|
0.96 %
|
|
$ 219,849
|
$
313
|
0.14 %
|
|
Investment securities
(a)(b)
|
1,680,647
|
34,535
|
2.05 %
|
|
1,205,514
|
19,545
|
1.62 %
|
|
Loans
(b)(c):
|
|
|
|
|
|
|
|
|
Construction
|
223,197
|
10,732
|
4.74 %
|
|
131,834
|
5,130
|
3.84 %
|
|
Commercial real estate,
other
|
1,327,064
|
65,405
|
4.86 %
|
|
1,061,323
|
42,308
|
3.93 %
|
|
Commercial and
industrial
|
875,754
|
41,358
|
4.66 %
|
|
870,682
|
37,321
|
4.23 %
|
|
Premium
finance
|
150,135
|
6,789
|
4.46 %
|
|
118,242
|
5,872
|
4.90 %
|
|
Leases
|
271,349
|
34,720
|
12.62 %
|
|
74,442
|
13,572
|
17.98 %
|
|
Residential real estate
(d)
|
881,136
|
37,851
|
4.30 %
|
|
700,691
|
29,686
|
4.24 %
|
|
Home equity lines of
credit
|
170,567
|
8,300
|
4.87 %
|
|
133,340
|
5,410
|
4.06 %
|
|
Consumer,
indirect
|
563,887
|
23,029
|
4.08 %
|
|
529,994
|
21,480
|
4.05 %
|
|
Consumer,
direct
|
111,148
|
6,769
|
6.09 %
|
|
88,611
|
5,501
|
6.21 %
|
|
Total loans
|
4,574,237
|
234,953
|
5.09 %
|
|
3,709,159
|
166,280
|
4.44 %
|
|
Allowance for credit
losses
|
(55,233)
|
|
|
|
(56,038)
|
|
|
|
Net loans
|
4,519,004
|
|
|
|
3,653,121
|
|
|
|
Total earning
assets
|
6,378,432
|
271,198
|
4.22 %
|
|
5,078,484
|
186,138
|
3.64 %
|
|
|
|
|
|
|
|
|
|
|
Goodwill and other
intangible assets
|
322,639
|
|
|
|
234,667
|
|
|
|
Other assets
|
393,636
|
|
|
|
359,443
|
|
|
|
Total assets
|
$
7,094,707
|
|
|
|
$
5,672,594
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Equity
|
|
|
|
|
|
|
|
|
Interest-bearing
deposits:
|
|
|
|
|
|
|
|
|
Savings
accounts
|
$
1,069,097
|
$
356
|
0.03 %
|
|
$ 772,726
|
$
112
|
0.01 %
|
|
Governmental deposit
accounts
|
701,587
|
2,172
|
0.31 %
|
|
529,955
|
2,035
|
0.38 %
|
|
Interest-bearing demand
accounts
|
1,165,106
|
583
|
0.05 %
|
|
848,526
|
303
|
0.04 %
|
|
Money market deposit
accounts
|
632,364
|
1,015
|
0.16 %
|
|
575,237
|
390
|
0.07 %
|
|
Retail certificates of
deposit (e)
|
580,660
|
2,978
|
0.51 %
|
|
497,181
|
3,952
|
0.79 %
|
|
Brokered deposit
(e)
|
88,234
|
2,067
|
2.34 %
|
|
150,716
|
3,130
|
2.08 %
|
|
Total interest-bearing
deposits
|
4,237,048
|
9,171
|
0.22 %
|
|
3,374,341
|
9,922
|
0.29 %
|
|
Short-term
borrowings
|
196,790
|
2,661
|
1.35 %
|
|
100,963
|
541
|
0.54 %
|
|
Long-term
borrowings
|
123,685
|
4,280
|
3.46 %
|
|
103,414
|
1,773
|
1.71 %
|
|
Total borrowed
funds
|
320,475
|
6,941
|
2.15 %
|
|
204,377
|
2,314
|
1.13 %
|
|
Total interest-bearing
liabilities
|
4,557,523
|
16,112
|
0.35 %
|
|
3,578,718
|
12,236
|
0.34 %
|
|
|
|
|
|
|
|
|
|
|
Non-interest-bearing
deposits
|
1,637,690
|
|
|
|
1,347,702
|
|
|
|
Other
liabilities
|
101,510
|
|
|
|
89,541
|
|
|
|
Total
liabilities
|
6,296,723
|
|
|
|
5,015,961
|
|
|
|
Stockholders'
equity
|
797,984
|
|
|
|
656,633
|
|
|
|
Total liabilities and
stockholders' equity
|
$
7,094,707
|
|
|
|
$
5,672,594
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income/spread (b)
|
|
$
255,086
|
3.87 %
|
|
|
$
173,902
|
3.30 %
|
|
Net interest margin
(b)
|
|
|
3.97 %
|
|
|
|
3.40 %
|
|
(a)
|
Average balances are
based on carrying value.
|
(b)
|
Interest income and
yields are presented on a fully tax-equivalent basis, using a 23.3%
blended corporate income tax rate in the third and fourth quarters
of 2022 and the full year 2022, and a 22.3% blended corporate
income tax rate for prior periods.
|
(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.
|
(e)
|
Interest related to
interest rate swap transactions is included, as appropriate to the
transaction, in interest expense on short-term FHLB advances and
interest expense on brokered deposits for the periods presented in
which FHLB advances and brokered deposits were being
utilized.
|
NON-US GAAP
FINANCIAL MEASURES (Unaudited)
|
|
The following non-US
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-US GAAP financial measures derived from amounts reported in
Peoples' consolidated financial statements:
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
December
31,
|
|
September
30,
|
|
December
31,
|
|
December
31,
|
(Dollars in
thousands)
|
2022
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
|
|
|
|
|
|
|
|
|
Core non-interest
expense:
|
|
|
|
|
|
|
|
|
|
Total non-interest
expense
|
$
53,366
|
|
$
52,253
|
|
$
47,991
|
|
$
207,147
|
|
$
183,737
|
Less:
acquisition-related expenses
|
702
|
|
339
|
|
903
|
|
3,016
|
|
21,423
|
Less: pension
settlement charges
|
46
|
|
139
|
|
—
|
|
185
|
|
143
|
Less: severance
expenses
|
—
|
|
—
|
|
16
|
|
—
|
|
79
|
Less: COVID-19-related
expenses
|
2
|
|
9
|
|
565
|
|
134
|
|
1,248
|
Less: Peoples Bank
Foundation, Inc. contribution
|
—
|
|
—
|
|
—
|
|
—
|
|
500
|
Less: contract
negotiation (refunds) expenses
|
—
|
|
—
|
|
(603)
|
|
—
|
|
1,248
|
Core non-interest
expense
|
$
52,616
|
|
$
51,766
|
|
$
47,110
|
|
$
203,812
|
|
$
159,096
|
|
Three Months
Ended
|
|
Year
Ended
|
|
December
31,
|
|
September
30,
|
|
December
31,
|
|
December
31,
|
(Dollars in
thousands)
|
2022
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
|
|
|
|
|
|
|
|
|
Efficiency
ratio:
|
|
|
|
|
|
|
|
|
|
Total non-interest
expense
|
$
53,366
|
|
$
52,253
|
|
$
47,991
|
|
$ 207,147
|
|
$ 183,737
|
Less: amortization of
other intangible assets
|
1,998
|
|
2,023
|
|
1,508
|
|
7,763
|
|
4,775
|
Adjusted total
non-interest expense
|
51,368
|
|
50,230
|
|
46,483
|
|
199,384
|
|
178,962
|
|
|
|
|
|
|
|
|
|
|
Total non-interest
income
|
19,034
|
|
20,366
|
|
19,815
|
|
78,836
|
|
68,885
|
Add: net (loss) gain on
investment securities
|
(168)
|
|
21
|
|
(158)
|
|
(61)
|
|
(862)
|
Add: net (loss)
gain on asset disposals and other
transactions
|
(302)
|
|
(35)
|
|
952
|
|
(616)
|
|
493
|
Total non-interest
income, excluding net gains and
losses
|
19,504
|
|
20,380
|
|
19,021
|
|
79,513
|
|
69,254
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
70,613
|
|
67,051
|
|
54,737
|
|
253,442
|
|
172,553
|
Add: fully
tax-equivalent adjustment (a)
|
412
|
|
387
|
|
379
|
|
1,644
|
|
1,349
|
Net interest income on
a fully tax-equivalent basis
|
71,025
|
|
67,438
|
|
55,116
|
|
255,086
|
|
173,902
|
|
|
|
|
|
|
|
|
|
|
Adjusted
revenue
|
$
90,529
|
|
$
87,818
|
|
$
74,137
|
|
$ 334,599
|
|
$ 243,156
|
|
|
|
|
|
|
|
|
|
|
Efficiency
ratio
|
56.74 %
|
|
57.20 %
|
|
62.69 %
|
|
59.59 %
|
|
73.60 %
|
|
|
|
|
|
|
|
|
|
|
Efficiency ratio
adjusted for non-core items:
|
|
|
|
|
|
|
|
|
Core non-interest
expense
|
$
52,616
|
|
$
51,766
|
|
$
47,110
|
|
$ 203,812
|
|
$ 159,096
|
Less: amortization of
other intangible assets
|
1,998
|
|
2,023
|
|
1,508
|
|
7,763
|
|
4,775
|
Adjusted core
non-interest expense
|
50,618
|
|
49,743
|
|
45,602
|
|
196,049
|
|
154,321
|
|
|
|
|
|
|
|
|
|
|
Adjusted
revenue
|
$
90,529
|
|
$
87,818
|
|
$
74,137
|
|
$ 334,599
|
|
$ 243,156
|
|
|
|
|
|
|
|
|
|
|
Efficiency ratio
adjusted for non-core items
|
55.91 %
|
|
56.64 %
|
|
61.51 %
|
|
58.59 %
|
|
63.47 %
|
|
|
|
|
|
|
|
|
|
|
(a) Tax effect is
calculated using a 23.3% blended corporate income tax rate for all
periods in 2022 and 22.3% blended corporate income tax rate for the
periods in 2021
|
NON-US GAAP
FINANCIAL MEASURES (Unaudited) -- (Continued)
|
|
|
At or For the Three
Months Ended
|
|
December
31,
|
|
September
30,
|
|
June
30,
|
|
March
31,
|
|
December
31,
|
(Dollars in
thousands, except per share data)
|
2022
|
|
2022
|
|
2022
|
|
2022
|
|
2021
|
|
|
|
|
|
|
|
|
|
|
Tangible
equity:
|
|
|
|
|
|
|
|
|
|
Total stockholders'
equity
|
$
785,328
|
|
$
760,511
|
|
$
786,824
|
|
$
808,340
|
|
$
845,025
|
Less: goodwill and
other intangible assets
|
326,329
|
|
328,428
|
|
328,132
|
|
341,865
|
|
291,009
|
Tangible
equity
|
$
458,999
|
|
$
432,083
|
|
$
458,692
|
|
$
466,475
|
|
$
554,016
|
|
|
|
|
|
|
|
|
|
|
Tangible
assets:
|
|
|
|
|
|
|
|
|
|
Total assets
|
$ 7,207,304
|
|
$ 7,005,854
|
|
$ 7,278,292
|
|
$ 7,239,261
|
|
$ 7,063,521
|
Less: goodwill and
other intangible assets
|
326,329
|
|
328,428
|
|
328,132
|
|
341,865
|
|
291,009
|
Tangible
assets
|
$ 6,880,975
|
|
$ 6,677,426
|
|
$ 6,950,160
|
|
$ 6,897,396
|
|
$ 6,772,512
|
|
|
|
|
|
|
|
|
|
|
Tangible book value
per common share:
|
|
|
|
|
|
|
|
|
|
Tangible
equity
|
$
458,999
|
|
$
432,083
|
|
$
458,692
|
|
$
466,475
|
|
$
554,016
|
Common shares
outstanding
|
28,287,837
|
|
28,278,078
|
|
28,290,115
|
|
28,453,175
|
|
28,297,771
|
|
|
|
|
|
|
|
|
|
|
Tangible book value per
common share
|
$
16.23
|
|
$
15.28
|
|
$
16.21
|
|
$
16.39
|
|
$
19.58
|
|
|
|
|
|
|
|
|
|
|
Tangible equity to
tangible assets ratio:
|
|
|
|
|
Tangible
equity
|
$
458,999
|
|
$
432,083
|
|
$
458,692
|
|
$
466,475
|
|
$
554,016
|
Tangible
assets
|
$ 6,880,975
|
|
$ 6,677,426
|
|
$ 6,950,160
|
|
$ 6,897,396
|
|
$ 6,772,512
|
|
|
|
|
|
|
|
|
|
|
Tangible equity to
tangible assets
|
6.67 %
|
|
6.47 %
|
|
6.60 %
|
|
6.76 %
|
|
8.18 %
|
|
Three Months
Ended
|
|
Year
Ended
|
|
December
31,
|
|
September
30,
|
|
December
31,
|
|
December
31,
|
(Dollars in
thousands)
|
2022
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
|
|
|
|
|
|
|
|
|
Pre-provision net
revenue:
|
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
$
33,980
|
|
$
33,388
|
|
$
33,163
|
|
$ 128,641
|
|
$
56,970
|
Add: provision for
credit losses
|
2,176
|
|
1,776
|
|
—
|
|
—
|
|
731
|
Add: loss on
OREO
|
—
|
|
105
|
|
2
|
|
173
|
|
34
|
Add: loss on investment
securities
|
321
|
|
—
|
|
556
|
|
375
|
|
2,046
|
Add: loss on other
assets
|
530
|
|
—
|
|
27
|
|
975
|
|
714
|
Add: loss on other
transactions
|
22
|
|
24
|
|
—
|
|
151
|
|
—
|
Less: recovery of
credit losses
|
—
|
|
—
|
|
6,602
|
|
3,634
|
|
—
|
Less: gain on
OREO
|
—
|
|
—
|
|
82
|
|
35
|
|
90
|
Less: gain on
investment securities
|
153
|
|
—
|
|
398
|
|
314
|
|
1,184
|
Less: gain on other
transactions
|
—
|
|
21
|
|
903
|
|
—
|
1504
|
897
|
Less: gain on other
assets
|
251
|
|
94
|
|
204
|
|
649
|
|
462
|
Pre-provision net
revenue
|
$
36,625
|
|
$
35,178
|
|
$
25,559
|
|
$ 125,683
|
|
$
57,862
|
|
|
|
|
|
|
|
|
|
|
Total average
assets
|
7,067,193
|
|
7,124,108
|
|
7,098,875
|
|
7,094,707
|
|
5,672,594
|
|
|
|
|
|
|
|
|
|
|
Pre-provision net
revenue to total average assets
(annualized)
|
2.06 %
|
|
1.96 %
|
|
1.43 %
|
|
1.77 %
|
|
1.02 %
|
Weighted-average common
shares outstanding –
diluted
|
27,981,656
|
|
27,973,255
|
|
28,114,980
|
|
27,999,602
|
|
21,959,883
|
Pre-provision net
revenue per common share –
diluted
|
$
1.31
|
|
$
1.25
|
|
$
0.91
|
|
$
4.48
|
|
$
2.63
|
NON-US GAAP
FINANCIAL MEASURES (Unaudited) -- (Continued)
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
December
31,
|
|
September
30,
|
|
December
31,
|
|
December
31,
|
(Dollars in
thousands)
|
2022
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
|
|
|
|
|
|
|
|
|
Annualized net
income adjusted for non-core items:
|
|
|
|
|
Net income
|
$
26,849
|
|
$
25,978
|
|
$
27,747
|
|
$
101,292
|
|
$ 47,555
|
Add: net loss on
investment securities
|
168
|
|
—
|
|
158
|
|
61
|
|
862
|
Less: tax effect of net
loss on investment securities (a)
|
35
|
|
—
|
|
33
|
|
13
|
|
181
|
Less: net gain on
investment securities
|
—
|
|
21
|
|
—
|
|
—
|
|
—
|
Add: tax effect of net
gain on investment securities (a)
|
—
|
|
4
|
|
—
|
|
—
|
|
—
|
Add: net loss on asset
disposals and other transactions
|
301
|
|
35
|
|
—
|
|
615
|
|
—
|
Less: tax effect of net
loss on asset disposals and other
transactions (a)
|
63
|
|
7
|
|
—
|
|
129
|
|
—
|
Less: net gain on asset
disposals and other transactions (a)
|
—
|
|
—
|
|
1,784
|
|
—
|
|
493
|
Add: tax effect of net
gain on asset disposals and other
transactions (a)
|
—
|
|
—
|
|
375
|
|
—
|
|
104
|
Add:
acquisition-related expenses
|
702
|
|
339
|
|
918
|
|
3,016
|
|
21,423
|
Less: tax effect of
acquisition-related expenses (a)
|
147
|
|
71
|
|
193
|
|
633
|
|
4,499
|
Add: severance
expenses
|
—
|
|
—
|
|
16
|
|
—
|
|
79
|
Less: tax effect of
severance expenses (a)
|
—
|
|
—
|
|
3
|
|
—
|
|
17
|
Add: pension settlement
charges
|
46
|
|
139
|
|
—
|
|
185
|
|
143
|
Less: tax effect of
pension settlement charges (a)
|
10
|
|
29
|
|
—
|
|
39
|
|
30
|
Add: COVID-19-related
expenses
|
2
|
|
9
|
|
565
|
|
134
|
|
1,248
|
Less: tax effect of
COVID-19-related expenses (a)
|
—
|
|
2
|
|
119
|
|
28
|
|
262
|
Add: Peoples Bank
Foundation, Inc. contribution
|
—
|
|
—
|
|
—
|
|
—
|
|
500
|
Less: tax effect of
Peoples Bank Foundation, Inc.
contribution
|
—
|
|
—
|
|
—
|
|
—
|
|
105
|
Add: contract
negotiation expenses
|
—
|
|
—
|
|
—
|
|
—
|
|
1,851
|
Less: tax effect of
contract negotiation expenses
|
—
|
|
—
|
|
—
|
|
—
|
|
389
|
Less: refund of
contract negotiation expense
|
—
|
|
—
|
|
603
|
|
—
|
|
603
|
Add: tax effect of
refund of contract negotiation expense
|
—
|
|
—
|
|
127
|
|
—
|
|
127
|
Net income adjusted for
non-core items
|
$
27,813
|
|
$
26,374
|
|
$
27,171
|
|
$
104,461
|
|
$ 67,313
|
|
|
|
|
|
|
|
|
|
|
Days in the
period
|
92
|
|
92
|
|
92
|
|
365
|
|
365
|
Days in the
year
|
365
|
|
365
|
|
365
|
|
365
|
|
365
|
Annualized net
income
|
$
106,520
|
|
$
103,065
|
|
$ 110,083
|
|
$
101,292
|
|
$ 47,555
|
Annualized net income
adjusted for non-core items
|
$
110,345
|
|
$
104,636
|
|
$ 107,798
|
|
$
104,461
|
|
$ 67,313
|
Return on average
assets:
|
|
|
|
|
|
|
|
|
|
Annualized net
income
|
$
106,520
|
|
$
103,065
|
|
$ 110,083
|
|
$
101,292
|
|
$ 47,555
|
Total average
assets
|
$
7,067,193
|
|
$
7,124,108
|
|
$
7,098,875
|
|
$
7,094,707
|
|
$
5,672,594
|
Return on average
assets
|
1.51 %
|
|
1.45 %
|
|
1.55 %
|
|
1.43 %
|
|
0.84 %
|
Return on average
assets adjusted for non-core items:
|
|
|
|
|
Annualized net income
adjusted for non-core items
|
$
110,345
|
|
$
104,636
|
|
$ 107,798
|
|
$
104,461
|
|
$ 67,313
|
Total average
assets
|
$
7,067,193
|
|
$
7,124,108
|
|
$
7,098,875
|
|
$
7,094,707
|
|
$
5,672,594
|
Return on average
assets adjusted for non-core items
|
1.56 %
|
|
1.47 %
|
|
1.52 %
|
|
1.47 %
|
|
1.19 %
|
(a) Tax effect is
calculated using a 21% statutory federal corporate income tax
rate.
|
NON-US GAAP
FINANCIAL MEASURES (Unaudited) -- (Continued)
|
|
|
For the Three Months
Ended
|
|
For the Year
Ended
|
|
December
31,
|
|
September
30,
|
|
December
31,
|
|
December
31,
|
(Dollars in
thousands)
|
2022
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
|
|
|
|
|
|
|
|
|
Annualized net
income excluding amortization of other intangible
assets:
|
|
|
|
|
Net income
|
$
26,849
|
|
$
25,978
|
|
$
27,747
|
|
$ 101,292
|
|
$
47,555
|
Add: amortization of
other intangible assets
|
1,998
|
|
2,023
|
|
1,508
|
|
7,763
|
|
4,775
|
Less: tax effect of
amortization of other
intangible assets (a)
|
420
|
|
425
|
|
317
|
|
1,630
|
|
1,003
|
Net income
excluding amortization of other
intangible assets
|
$
28,427
|
|
$
27,576
|
|
$
28,938
|
|
$ 107,425
|
|
$
51,327
|
|
|
|
|
|
|
|
|
|
|
Days in the
period
|
92
|
|
92
|
|
92
|
|
365
|
|
365
|
Days in the
year
|
365
|
|
365
|
|
365
|
|
365
|
|
365
|
Annualized net
income
|
$
106,520
|
|
$ 103,065
|
|
$ 110,083
|
|
$ 101,292
|
|
$
47,555
|
Annualized net income
excluding amortization of other intangible
assets
|
$
112,781
|
|
$ 109,405
|
|
$ 114,808
|
|
$ 107,425
|
|
$
51,327
|
|
|
|
|
|
|
|
|
|
|
Average tangible
equity:
|
|
|
|
|
Total average
stockholders' equity
|
$
768,650
|
|
$ 797,859
|
|
$ 836,797
|
|
$ 797,984
|
|
$
656,633
|
Less: average goodwill
and other intangible assets
|
327,377
|
|
329,482
|
|
298,276
|
|
322,639
|
|
234,667
|
Average tangible
equity
|
$
441,273
|
|
$ 468,377
|
|
$ 538,521
|
|
$ 475,345
|
|
$
421,966
|
|
|
|
|
|
|
|
|
|
|
Return on average
stockholders' equity ratio:
|
|
|
|
|
|
Annualized net
income
|
$
106,520
|
|
$ 103,065
|
|
$ 110,083
|
|
$ 101,292
|
|
$
47,555
|
Average stockholders'
equity
|
$
768,650
|
|
$ 797,859
|
|
$ 836,797
|
|
$ 797,984
|
|
$
656,633
|
|
|
|
|
|
|
|
|
|
|
Return on average
stockholders' equity
|
13.86 %
|
|
12.92 %
|
|
13.16 %
|
|
12.69 %
|
|
7.24 %
|
|
|
|
|
|
|
Return on average
tangible equity ratio:
|
|
|
|
|
|
Annualized net income
excluding
amortization of other intangible assets
|
$
112,781
|
|
$ 109,405
|
|
$ 114,808
|
|
$ 107,425
|
|
$
51,327
|
Average tangible
equity
|
$
441,273
|
|
$ 468,377
|
|
$ 538,521
|
|
$ 475,345
|
|
$
421,966
|
|
|
|
|
|
|
|
|
|
|
Return on average
tangible equity
|
25.56 %
|
|
23.36 %
|
|
21.32 %
|
|
22.60 %
|
|
12.16 %
|
|
(a) Tax effect is
calculated using a 21% statutory federal corporate income tax
rate.
|
View original
content:https://www.prnewswire.com/news-releases/peoples-bancorp-inc-announces-4th-quarter-and-record-annual-results-for-2022-301728597.html
SOURCE Peoples Bancorp Inc.