In the news release, PEOPLES BANCORP INC. ANNOUNCES FIRST
QUARTER 2023 RESULTS, issued 25-Apr-2023 by Peoples Bancorp Inc. over PR
Newswire, we are advised by the company that the prior version
released included inaccuracies in the reported amounts for (i)
earnings per common share - basic, (ii) earnings per common share -
diluted, (iii) weighted-average common shares outstanding - basic,
(iv) weighted-average common shares outstanding - diluted and (v)
pre-provision net revenue per common share - diluted throughout the
release. The complete, corrected release follows:
PEOPLES BANCORP INC. ANNOUNCES FIRST QUARTER 2023 RESULTS
MARIETTA, Ohio, April 25,
2023 /PRNewswire/ -- Peoples Bancorp Inc. ("Peoples")
(Nasdaq: PEBO) today announced results for the three months ended
March 31, 2023. Peoples reported net
income of $26.6 million for the first
quarter of 2023, representing earnings per diluted common share of
$0.94. In comparison, Peoples
reported earnings per diluted common share of $0.95 for the fourth quarter of 2022, and of
$0.84 for the first quarter of
2022.
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 $0.05 for the first quarter of 2023, compared to
$0.06 for the fourth quarter of 2022,
while the release of provision positively impacted earnings per
diluted common share by $0.18 for the
first quarter of 2022.
Non-core items, and the related tax effect of each, in net
income primarily included acquisition-related expenses.
Non-core items negatively impacted earnings per diluted common
share by $0.05 for the first quarter
of 2023, $0.03 for the fourth quarter
of 2022, and $0.04 for the first
quarter of 2022.
"We are very pleased with our results for the first quarter of
2023. We are above well capitalized levels, even if we included our
accumulated other comprehensive loss on our available-for-sale
portfolio and unrealized losses on our held-to-maturity investment
portfolio. Net interest margin was 4.53%, an improvement of 9 basis
points compared to the linked quarter." said Chuck Sulerzyski, President and Chief Executive
Officer. "Our return on average assets continued to be strong at
1.49%, and our tangible equity to tangible assets ratio improved 41
basis points to 7.08% when compared to at year-end. We continue to
be optimistic about our ability to grow earnings and assets, while
maintaining or improving credit quality."
Investment Portfolio Restructuring:
During the first
quarter of 2023, Peoples executed the sale of $96.7 million of its lower yielding
available-for-sale securities for an after-tax loss of $1.6 million. Proceeds from the sale were
used to pay down overnight borrowings. The loss on the sale of
these available-for-sale securities had a nominal impact on
tangible book value as such loss was previously reflected in
capital through accumulated other comprehensive loss. The realized
losses recognized due to these transactions are projected to be
earned back within the 2023 fiscal year.
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 on April 30, 2023, as all regulatory and shareholder
approvals have been received. As of March 31, 2023, Peoples
had recognized $1.0 million in
acquisition-related expenses 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 recorded lease assets of
approximately $154.9 million as of
the acquisition date. Peoples recorded $27.2
million in goodwill and $13.2
million in other intangible assets in connection with the
Vantage acquisition.
Statement of Operations Highlights:
- Net interest income increased $2.3
million, or 3%, compared to the linked quarter and increased
$18.6 million, or 34%, compared to
the first quarter of 2022.
-
- Net interest margin increased 9 basis points to 4.53% for the
first quarter of 2023, compared to 4.44% for the linked quarter and
increased 112 basis points compared to 3.41% for the first quarter
of 2022.
- The increase in net interest margin compared to the linked
quarter was driven by increases in market interest rates, by a
change in the loan portfolio mix, and by recent purchases of higher
yielding investment securities.
- The increase in net interest income for the first quarter of
2023 compared to the first quarter of 2022 was driven by increases
in market interest rates and a full quarter of income from Vantage
in the first quarter of 2023 compared to only one month of income
in the first quarter of 2022.
- Peoples recorded a provision for credit losses of
$1.9 million for the first quarter of
2023, compared to $2.3 million for
the fourth quarter of 2022, and a recovery of credit losses of
$6.8 million for the first quarter of
2022.
-
- The provisions for credit losses in the first quarter of 2023
and the linked quarter 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 in the
first quarter of 2022 was attributable to an improvement in
economic factors and loss drivers within the current expected
credit loss ("CECL") model.
- Net charge-offs were $1.5
million, or 0.13% of average total loans annualized, for the
first quarter of 2023, compared to $2.1
million, or 0.18%, for the linked quarter and $1.9 million, or 0.17%, for the first quarter of
2022.
- Total non-interest income, excluding net gains and
losses, increased $1.7 million, or
9%, compared to the linked quarter, and increased $1.2 million, or 6%, compared to the first
quarter of 2022.
-
- The increase in non-interest income, excluding gains and
losses, when compared to the fourth quarter of 2022 was largely
driven by increased insurance income due to seasonal
performance-based commissions being earned in the first quarter of
each year.
- Total non-interest income, excluding net gains and losses, for
the first three months of 2023 was 23% of total revenue.
- Total non-interest expense increased $3.1 million, or 6%, compared to the linked
quarter and increased $4.9 million,
or 9%, compared to the first quarter of 2022.
-
- The increase in total non-interest expense for the first
quarter of 2023 when compared to the linked quarter was primarily
attributable to an increase in salaries and employee benefit costs
due to anticipated annual expenses that occur in the first quarter
of each year including annual merit increases, stock-based
compensation expenses attributable to retirement-eligible employees
and health savings account ("HSA") contributions.
- For the first quarter of 2023, the efficiency ratio was 57.8%.
When adjusted for non-core items, the efficiency ratio was 57.2%
for the first quarter of 2023.
Balance Sheet Highlights:
- Period-end total loan and lease balances increased
$52.6 million, or 4% annualized,
compared to December 31, 2022.
Average total loan and lease balances for the three months ended
March 31, 2023 increased $49.2 million compared to the three months ended
December 31, 2022.
-
- The increases in period-end and average total loan and lease
balances were primarily the result of growth in (i) other
commercial real estate, (ii) indirect consumer loans and (iii)
leases.
- Asset quality metrics remained stable during the
quarter.
-
- Delinquency trends remained steady as loans considered current
comprised 98.8% of the loan portfolio at March 31, 2023, compared to 98.6% at December 31, 2022.
- Nonperforming assets decreased $2.4
million compared to December 31, 2022. The decrease was
primarily attributable to a reduction in nonaccrual residential
real estate loans and other commercial real estate loans, mostly
offset by an increase in nonperforming leases.
- Criticized loans increased $7.6
million during the first quarter of 2023. The increase was
primarily driven by the downgrades of three commercial and
industrial relationships.
- Classified loans increased $3.7
million during the first quarter of 2023. The increase was
primarily driven by a downgrade of a commercial and industrial
relationship.
- Period-end total deposit balances at March 31, 2023 increased $71.6 million, or 1%, compared to at December 31, 2022.
-
- The increase was driven by an increase in total certificates of
deposits balances.
- The percentages of retail deposit balances and commercial
deposit balances of the total deposit balance at March 31, 2023 were 75% and 25%, respectively,
compared to 74% and 26%, respectively, at December 31, 2022.
- Total demand deposit balances were 46% and 48% of total deposit
balances at March 31, 2023 and at
December 31, 2022, respectively.
- Total loan balances were 82% of total deposit balances at both
March 31, 2023 and December 31, 2022.
- At March 31, 2023, 32% of our
deposit balances exceeded the FDIC insurance limit of $250,000 compared to 33% at December 31,
2022. Peoples pledges investment securities against certain
governmental deposit accounts, which collateralized $698.9 million of the uninsured deposit balances
at March 31, 2023.
Net Interest Income:
Net interest income was
$72.9 million for the first quarter
of 2023, an increase of $2.3 million,
or 3%, compared to the linked quarter. Net interest margin was
4.53% for the first quarter of 2023, compared to 4.44% for the
linked quarter. The increases in net interest income and net
interest margin were driven by 50 basis points of improvement in
loan yields due to recent increases in market interest rates and a
shift in the composition of the loan portfolio into higher-yielding
leases, and 41 basis points of improvement in investment yields
when compared to the linked quarter due to purchases of investment
securities with higher interest rates and sales of lower-yielding
investment securities.
Net interest income for the first quarter of 2023 increased
$18.6 million, or 34%, compared to
the first quarter of 2022. Net interest margin increased 112 basis
points compared to 3.41% for the first quarter of 2022. The
increase in net interest income compared to the first quarter of
2022 was driven by increases in market interest rates and a full
quarter of income from the Vantage acquisition.
Accretion income, net of amortization expense, from acquisitions
was $2.0 million for the first
quarter of 2023, $2.2 million for the
fourth quarter of 2022 and $2.7
million for the first quarter of 2022, which added 13 basis
points, 14 basis points and 17 basis points, respectively, to net
interest margin. The decreases in accretion income for the first
quarter of 2023 when compared to the linked quarter and the first
quarter of 2022 were driven by less loan accretion due to lower
pay-offs and less accretion from the merger with Premier Financial
Bancorp, Inc. ("Premier") and the Vantage acquisition.
Provision for (Recovery of) Credit Losses:
The
provision for credit losses was $1.9
million for the first quarter of 2023, compared to a
provision for credit losses of $2.3
million for the linked quarter and a recovery of credit
losses of $6.8 million for the first
quarter of 2022. The provisions for credit losses in the first
quarter of 2023 and the linked quarter 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 in
the first quarter of 2022 was primarily due to an improvement in
economic factors and loss drivers within the CECL model.
Net charge-offs for the first quarter of 2023 were $1.5 million, or 0.13% of average total loans
annualized, compared to net charge-offs of $2.1 million, or 0.18% of average total loans
annualized, for the linked quarter and net charge-offs of
$1.9 million, or 0.17% of average
total loans annualized, for the first quarter of 2022. 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 Operations. The net loss realized
during the first quarter of 2023 was $2.2 million, compared to a net loss of
$0.5 million for the linked
quarter, and a net gain of $3,000 for
the first quarter of 2022. The net loss in the first quarter of
2023 was primarily due to the $2.0 million pre-tax net loss on the sale of
the available-for-sale investment securities mentioned above. The
net loss for the linked quarter was primarily due to net losses on
repossessed assets and net losses on sales of investment
securities.
Total Non-interest Income, Excluding Net Gains and
Losses:
Total non-interest income, excluding net gains and
losses, for the first quarter of 2023 increased $1.7 million compared to the linked quarter. The
increase in non-interest income, excluding net gains and losses,
was due to a $1.7 million increase in
insurance income due to seasonal performance-based commissions
being earned in the first quarter of each year.
Compared to the first quarter of 2022, non-interest income,
excluding net gains and losses, increased $1.2 million, primarily due to a $0.7 million increase in insurance income which
was attributable to an increase in property and casualty insurance
commissions.
Total Non-interest Expense:
Total non-interest expense
increased $3.1 million, or 6%, for
the three months ended March 31, 2023, compared to the linked
quarter. The increase in total non-interest expense for the first
quarter of 2023 was attributable to an increase in salaries and
employee benefit costs. The increase in salaries and employee
benefit costs was due to anticipated additional expenses typically
recognized in the first quarter of each year. These expenses
included annual merit increases, stock-based compensation expenses
attributable to retirement-eligible employees, and HSA
contributions.
Compared to the first quarter of 2022, total non-interest
expense increased $4.9 million, or
9%, primarily due to increases in (i) salaries and employee benefit
costs, (ii) data processing and software expense and (iii) other
non-interest expense. The increases were due to growth, including
through acquisitions. Partially offsetting these increases were
decreases in electronic banking expense and professional fees.
The efficiency ratio for the first quarter of 2023 was 57.8%,
compared to 56.7% for the linked quarter, and 66.8% for the first
quarter of 2022. The increase in the efficiency ratio compared to
the linked quarter was primarily due to the increases in
non-interest expenses, which were partially offset by
higher net interest income due to increases in the market
interest rates. The decrease in the efficiency ratio compared to
the prior year quarter was primarily due to a decrease in
acquisition-related expenses. The efficiency ratio, adjusted for
non-core items, was 57.2% for the first quarter of 2023, compared
to 55.9% for the linked quarter and 64.8% for the first quarter of
2022. 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 $7.0
million with an effective tax rate of 21.0% for the first
quarter of 2023, compared to income tax expense of $7.1 million with an effective tax rate of 21.0%
for the linked quarter, and income tax expense of $6.0 million with an effective tax rate of 20.2%
for the first quarter of 2022. Income tax expense for the first
quarter of 2023, compared to the linked quarter, was relatively
flat due to similar net income before income taxes. The increase in
income tax expense for the three months ended March 31, 2023, compared to the three months
ended March 31, 2022, was driven by a
higher income before income taxes.
Investment Securities and Liquidity:
Peoples'
investment portfolio primarily consists of available-for-sale
investment securities reported at fair value and held-to-maturity
investment securities reported at amortized cost. The
available-for-sale investment securities balance at March 31,
2023 decreased $81.9 million and
$252.3 million when compared to at
December 31, 2022 and at March 31, 2022, respectively.
The change in the balance from December 31, 2022 was due to
management's decision to sell $96.7
million of its lower yielding securities during the first
quarter of 2023. The change in the balance from March 31, 2022
was due to a reduction in market value of available-for-sale
securities driven by the recent increases in market interest rates
and the sales of the lower-yielding available-for-sale securities
mentioned above. The balances of unrealized losses on
available-for-sale investment securities recognized within
accumulated other comprehensive loss were $112.7 million, $129.9
million and $61.2 million at
March 31, 2023, at December 31, 2022 and at
March 31, 2022, respectively.
The held-to-maturity investment securities balance at
March 31, 2023 increased $133.9
million and $309.4 million
when compared to at December 31, 2022 and at March 31,
2022, respectively. The increases were driven by purchases of
agency mortgage-backed securities, agency collateralized mortgage
obligations, and agency debentures. Most of the securities
purchased during the first quarter of 2023 were classified as
held-to-maturity, which has contributed to the reduction of
available-for-sale securities as a percentage of the bond
portfolio. Management purchased these securities to increase
portfolio yield and reduce Peoples' sensitivity to falling
intermediate and long-term interest rates. The balances of
unrealized losses on held-to-maturity investment securities were
$69.9 million, $80.6 million and $37.0
million at March 31, 2023, at
December 31, 2022 and at March 31, 2022, respectively.
The duration of the investment portfolio as of March 31,
2023 was estimated to be 5.60 years. The duration of Peoples'
investments is managed as part of its Asset Liability Management
program, and has the potential to impact both liquidity and
capital, as mismatches in duration may require a liquidation of
investment securities at market prices to meet funding needs. These
assets are one component of Peoples' liquidity profile, which is
discussed in further detail below.
Peoples maintains a number of liquid and liquefiable assets,
borrowing capacity, and other contingent sources of liquidity to
ensure the availability of funds. At March 31, 2023, Peoples'
had liquid and liquefiable assets of $550.2
million, which represented (i) cash and cash equivalents,
(ii) unpledged government and agency investment securities and
(iii) unpledged non-agency investment securities that could be
liquidated. At March 31, 2023, Peoples had a borrowing
capacity of $693.3 million available
through the Federal Home Loan Bank ("FHLB"), the Federal Reserve
Bank ('FRB"), and federal funds. Additionally at March 31,
2023, Peoples had other contingent sources of liquidity totaling
$1.9 billion.
Loans and Leases:
The period-end total loan and lease
balances at March 31, 2023 increased $52.6 million, or 4% annualized, compared to at
December 31, 2022. The increase in the period-end loan and
lease balances was primarily driven by increases of (i)
$57.5 million in other commercial
real estate loans, (ii) $17.8 million
in indirect consumer loans and (iii) $9.5
million in leases, partially offset by reductions of
$14.6 million in construction loans
and $10.8 million in residential real
estate loans. At March 31, 2023, commercial real estate loans
were 36.0% of the total loan and lease balance compared to 35.4% of
the total loan and lease balance at December 31, 2022.
The period-end total loan and lease balances increased
$212.6 million compared to at
March 31, 2022. The increase in the period-end loan and lease
balances was primarily driven by increases of $122.4 million in indirect consumer loans and
$87.6 million in leases, partially
offset by a reduction of $43.8
million in residential real estate loans. Commercial real
estate loans were 37.3% of the total loan and lease balance at
March 31, 2022.
Quarterly average loan and lease balances increased $49.2 million in the first quarter of 2023
compared to the linked quarter. The increase was driven by
increases of $39.6 million,
$27.7 million, and $17.5 million in other commercial real estate
loans, indirect consumer loans, and leases, respectively. These
increases were partially offset by decreases of $13.5 million in both residential real estate
loans and premium finance loans. Compared to the first quarter of
2022, quarterly average loan and lease balances increased
$226.5 million, driven by increases
of $180.3 million and $116.6 million in leases and indirect consumer
loans, respectively, partially offset by a decrease of $73.9 million in residential real estate
loans.
Asset Quality:
Asset quality metrics remained stable
during the quarter. Total nonperforming assets decreased
$2.4 million, or 5%, compared to at
December 31, 2022, and $4.6
million, or 10%, compared to at March 31, 2022. The
decrease in nonperforming assets compared to the linked quarter was
primarily attributable to a reduction in nonaccrual residential
real estate loans and other commercial real estate loans, partially
offset by an increase in past due leases. The decrease from the
prior year quarter was driven by a reduction in nonaccrual other
commercial real estate loans, partially offset by an increase in
past due leases. Nonperforming assets as a percent of total loans
and OREO were 0.90% at March 31, 2023, down from 0.96% at
December 31, 2022 and 1.04% at March 31, 2022.
Criticized loans, which are those categorized as special
mention, substandard or doubtful, increased $7.6 million and $8.6
million compared to at December 31, 2022 and at
March 31, 2022, respectively. As a percent of total loans,
criticized loans were 4.18% at March 31, 2023, compared to
4.07% at December 31, 2022 and 4.19% at March 31, 2022.
The increase in the amount of criticized loans compared to at
December 31, 2022 was primarily related to downgrades of three
commercial and industrial relationships. Compared to at
March 31, 2022, the increase in the amount of criticized loans
was largely due to downgrades of six commercial and industrial
relationships, partially offset by pay-downs and upgrades of
purchased credit deteriorated ("PCD") loans acquired from Premier.
Classified loans, which are those categorized as substandard or
doubtful, increased $3.7 million and
decreased $16.3 million compared to
December 31, 2022 and March 31, 2022, respectively. As a
percent of total loans, classified loans were 1.96% at
March 31, 2023, compared to 1.90% at December 31, 2022,
and 2.41% at March 31, 2022. The increase in classified loans
compared to the linked quarter was driven by the downgrade of one
commercial and industrial relationship. The decrease in classified
loans when compared to the first quarter of 2022 was largely
attributable to the upgrade of one larger acquired lodging-related
loan from substandard to special mention, as well as pay-downs,
including the pay-off of three larger commercial relationships that
were acquired.
Annualized net charge-offs were 0.13% of average total loans for
the first quarter of 2023, compared to 0.18% for the linked quarter
and 0.17% for the prior year quarter, with the decrease relative to
the linked quarter driven by lower charge-offs on leases,
residential real estate loans and deposit account overdrafts,
partially offset by increased charge-offs on indirect consumer
loans. The decrease in net charge-offs during the current quarter
versus the prior year quarter was primarily attributable to
decreases in net charge-offs in (i) commercial and industrial
loans, (ii) residential real estate loans, and (iii) other
commercial real estate loans, partially offset by an increase in
net charge-offs in indirect consumer loans.
At March 31, 2023, the allowance for credit losses was
$53.3 million, compared to
$53.2 million at December 31,
2022, and $54.8 million at
March 31, 2022. The change in the allowance for credit losses
compared to at March 31, 2022 was driven by decreases in
the allowances for individually analyzed loans, offset by loan
growth and deterioration in the economic forecast. The ratio of the
allowance for credit losses as a percent of total loans was 1.12%
at March 31, 2023, compared to 1.13% at December 31, 2022
and 1.20% at March 31, 2022.
Deposits:
As of March 31, 2023, period-end
deposit balances increased $71.6
million, or 1%, compared to December 31, 2022. The
increase was primarily driven by increases of $147.6 million in brokered certificates of
deposits, which are primarily used as a source of funding, and
$91.9 million in retail certificates
of deposit. Excluding the increase in brokered certificates of
deposits, total deposits at March 31, 2023 decreased
$76.0 million when compared to at
December 31, 2022 primarily due to reductions of (i)
$75.0 million in interest-bearing
deposit accounts, (ii) $43.9 million
in savings accounts, (iii) $37.9
million in money market deposit accounts, and (iv)
$34.3 million in non-interest bearing
deposit accounts.
Period-end deposit balances decreased $214.4 million, or 4%, compared to March 31,
2022. Deposits decreased primarily due to reductions in
non-interest-bearing deposits, interest-bearing demand deposit
accounts, governmental deposit accounts, and money market deposit
accounts of $111.6 million,
$94.0 million, $85.5 million and $77.2
million, respectively, partially offset by an increase of
$185.8 million in brokered
certificates of deposits.
The percentages of retail deposit balances and commercial
deposit balances of the total deposit balance at March 31,
2023 were 75% and 25%, respectively, compared to 74% and 26%,
respectively, at December 31, 2022 and 72% and 28%,
respectively, at March 31, 2022.
Uninsured deposits were 32%, 33%, and 35% of total deposits at
March 31, 2023, December 31, 2022, and March 31,
2022, respectively. Uninsured amounts are estimated based on the
portion of customer account balances that met or exceeded the FDIC
limit of $250,000. Peoples pledges
investment securities against certain governmental deposit
accounts, which collateralized $698.9
million of the uninsured deposit balances at March 31,
2023.
Average deposit balances during the first quarter of 2023
decreased $60.8 million compared to
the linked quarter. This decrease was driven by lower non
interest-bearing deposits, partially offset by an increase in
interest-bearing deposits. Compared to the first quarter of
2022, quarterly average deposits decreased $140.4 million, driven by decreases in both non
interest-bearing deposits and interest-bearing deposits. Total
demand deposit accounts comprised 46%, 48% and 47% of total
deposits at March 31, 2023, December 31, 2022, and
March 31, 2022, respectively.
Stockholders' Equity:
Total stockholders' equity at
March 31, 2023 increased by $34.2
million compared to December 31, 2022, which reflected
net income for the quarter of $26.6
million and a decrease in accumulated other comprehensive
loss of $16.2 million, partially
offset by dividends paid of $10.7
million. 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.
Accumulated unrealized losses related to the available-for-sale
investment securities portfolio were $112.7
million and $129.9 million at
March 31, 2023 and December 31, 2022, respectively.
Total stockholders' equity at March 31, 2023 increased
$11.2 million compared to at
March 31, 2022, which was primarily due to net income of
$104.3 million in the last twelve
months partially offset by an increase in accumulated other
comprehensive loss of $48.3 million.
The increase in accumulated other comprehensive loss was the result
of an increase of $51.5 million in
unrealized losses related to the available-for-sale investment
securities portfolio from March 31, 2022 to March 31,
2023.
At March 31, 2023, the tier 1 risk-based capital ratio was
12.49%, compared to 12.19% at December 31, 2022, and 11.80% at
March 31, 2022. The common equity tier 1 risk-based capital
ratio was 12.22% at March 31, 2023, compared to 11.92% at
December 31, 2022, and 11.51% at March 31, 2022. The
total risk-based capital ratio was 13.35% at March 31, 2023,
compared to 13.06% at December 31, 2022, and 12.78% at
March 31, 2022. Peoples adopted the five-year transition to
phase in the impact of the adoption of CECL, effective January 1, 2020, on regulatory capital ratios.
Compared to December 31, 2022 and March 31, 2022, these
capital ratios improved due to net income during the first quarter
of 2023, partially offset by dividends paid.
Book value per common share and tangible book value per common
share, which excludes goodwill and other intangible assets, were
$28.77 and $17.37, respectively, at March 31, 2023,
compared to $27.76 and $16.23, respectively, at December 31, 2022,
and $28.41 and $16.39, respectively, at March 31, 2022. The
ratio of total stockholders' equity to total assets was 11.21% at
March 31, 2023, compared to 10.90% at December 31, 2022,
and 11.17% at March 31, 2022. The ratio increased from
March 31, 2022 due primarily to net income over the last
twelve months. The tangible equity to tangible assets ratio, which
excludes goodwill and other intangible assets, was 7.08% at
March 31, 2023, compared to 6.67% and 6.76% at
December 31, 2022, and March 31, 2022, respectively. The
ratios increased compared to at December 31, 2022 due to a
reduction in accumulated other comprehensive loss. The ratios
increased compared to at March 31, 2022 primarily due to net
income over the last twelve months, partially offset by an increase
in accumulated other comprehensive loss.
Peoples Bancorp Inc. ("Peoples", Nasdaq: PEBO) is a diversified
financial services holding company that makes available a
complete line of banking, trust and investment, insurance, premium
financing and equipment leasing solutions through its subsidiaries.
Peoples has been headquartered in Marietta, Ohio since 1902. Peoples had
$7.3 billion in total assets as
of March 31, 2023, and 130 locations, including 113
full-service bank branches in Ohio, West
Virginia, Kentucky,
Virginia, Washington D.C. and Maryland. Peoples' vision is to be the Best
Community Bank in America.
Peoples is a member of the Russell 3000 index of United States ("U.S.") publicly-traded
companies. Peoples offers services through Peoples Bank (which
includes the divisions of Peoples Investment Services, Peoples
Premium Finance and NSL), Peoples Insurance Agency, LLC and
Vantage.
Conference Call to Discuss Earnings:
Peoples will conduct a facilitated conference call to discuss first
quarter 2023 results of operations on April 25, 2023 at
11:00 a.m., Eastern Daylight 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 in accordance with
accounting principles generally accepted in the U.S. ("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.
Peoples also uses the non-US GAAP financial measures for
calculating incentive compensation. 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 a non-US GAAP financial measure
since it excludes the impact of acquisition-related expenses,
pension settlement charges, and COVID-19-related expenses.
- The 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
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.
- The 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 a non-US GAAP financial measure since it excludes the
impact of acquisition-related expenses, pension settlement charges,
COVID-19-related expenses and 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, the tangible equity to
tangible assets ratio and tangible book value per common share are
non-US GAAP financial measures 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 financial 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 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.
- 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, acquisition-related expenses, pension
settlement charges, and COVID-19-related expenses) divided by
average assets. This measure is a non-US GAAP financial measure
since it excludes the after-tax impact of all gains and losses,
acquisition-related expenses, pension settlement charges, and
COVID-19-related expenses.
- Return on average tangible equity is calculated as annualized
net income (less the after-tax impact of amortization of other
intangible assets) divided by average tangible equity. This measure
is a non-US GAAP financial measure 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 risks and uncertainties 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 condition;
|
(2)
|
ongoing increasing
interest rate policies, changes in the interest rate environment
due to economic conditions and/or the fiscal and monetary policy
measures undertaken by the U.S. government and the Federal Reserve
Board, including changes in the Federal Funds Target Rate, 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
ongoing increasing interest rate policies of the Federal Reserve
Board, the completion and successful integration of planned
acquisitions, including the recently-completed acquisition of
Vantage and the pending Limestone Merger, and the expansion of
commercial and consumer lending activities;
|
(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 persistent inflation, supply chain issues or labor
shortages, ineffective management of the U.S. federal budget or
debt, 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, 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, such as
the recent closures of Silicon Valley Bank in California and
Signature Bank in New York, which may adversely affect the banking
industry and/or Peoples' business generation and retention, funding
and liquidity, including potential increased regulatory
requirements, and increased reputational risk and potential impacts
to macroeconomic conditions;
|
(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, including any enhanced regulatory, compliance,
credit and reputational risks and costs;
|
(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 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 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 or maintain adequate deposit levels in
light of the recent bank failures; 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, 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 -
www.peoplesbancorp.com under the "Investor Relations"
section.
|
|
As required by US GAAP, Peoples is required to evaluate the
impact of subsequent events through the issuance date of its
March 31, 2023 consolidated financial statements as part of
Peoples' 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 (Unaudited)
|
|
|
At or For the Three
Months Ended
|
|
March
31,
|
|
December
31,
|
|
March
31,
|
|
2023
|
|
2022
|
|
2022
|
|
|
|
|
|
|
PER COMMON
SHARE:
|
|
|
|
|
|
Earnings per common
share:
|
|
|
|
|
|
Basic
|
$
0.95
|
|
$
0.96
|
|
$
0.84
|
Diluted
|
0.94
|
|
0.95
|
|
0.84
|
Cash dividends declared
per common share
|
0.38
|
|
0.38
|
|
0.36
|
Book value per common
share (a)
|
28.77
|
|
27.76
|
|
28.41
|
Tangible book value per
common share (a)(b)
|
17.37
|
|
16.23
|
|
16.39
|
Closing price of common
shares at end of period (a)
|
$
25.75
|
|
$
28.25
|
|
$
31.31
|
|
|
|
|
|
|
SELECTED
RATIOS:
|
|
|
|
|
|
Return on average
stockholders' equity (c)
|
13.44 %
|
|
13.86 %
|
|
11.45 %
|
Return on average
tangible equity (c)(d)
|
23.89 %
|
|
25.56 %
|
|
19.05 %
|
Return on average
assets (c)
|
1.49 %
|
|
1.51 %
|
|
1.35 %
|
Return on average
assets adjusted for non-core items (c)(e)
|
1.61 %
|
|
1.56 %
|
|
1.42 %
|
Efficiency ratio
(f)
|
57.78 %
|
|
56.74 %
|
|
66.79 %
|
Efficiency ratio
adjusted for non-core items (g)(i)
|
57.19 %
|
|
55.91 %
|
|
64.82 %
|
Pre-provision net
revenue to total average assets (c)(h)
|
2.11 %
|
|
2.06 %
|
|
1.30 %
|
Net interest margin
(c)
|
4.53 %
|
|
4.44 %
|
|
3.41 %
|
Dividend payout ratio
(j)
|
40.38 %
|
|
40.02 %
|
|
43.16 %
|
|
|
(a)
|
Data presented as of
the end of the period indicated.
|
(b)
|
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)."
|
(c)
|
Ratios are presented on
an annualized basis.
|
(d)
|
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)."
|
(e)
|
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, acquisition-related expenses, pension settlement
charges, and COVID-19-related 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)."
|
(f)
|
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)."
|
(g)
|
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 and COVID-19-related 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)."
|
(h)
|
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)."
|
(i)
|
Information presented
on a fully tax-equivalent basis, using a 23.3% blended corporate
income tax rate for the three months ended March 31, 2023 and
December 31, 2022, and a 22.9% blended corporate income tax rate
for the three months ended March 31, 2022.
|
(j)
|
This ratio is
calculated based on dividends declared during the period divided by
net income for the period.
|
CONSOLIDATED
STATEMENTS OF OPERATIONS (Unaudited)
|
|
|
Three Months
Ended
|
|
March
31,
|
|
December
31,
|
|
March
31,
|
(Dollars in
thousands, except per share data)
|
2023
|
|
2022
|
|
2022
|
Total interest
income
|
$
84,149
|
|
$
76,202
|
|
$
57,425
|
Total interest
expense
|
11,271
|
|
5,589
|
|
3,115
|
Net interest
income
|
72,878
|
|
70,613
|
|
54,310
|
Provision for (recovery
of) credit losses
|
1,853
|
|
2,301
|
|
(6,807)
|
Net interest income
after provision for (recovery of) credit losses
|
71,025
|
|
68,312
|
|
61,117
|
Non-interest
income:
|
|
|
|
|
|
Electronic banking
income
|
5,443
|
|
5,161
|
|
5,253
|
Insurance
income
|
5,425
|
|
3,732
|
|
4,731
|
Trust and investment
income
|
4,084
|
|
3,915
|
|
4,276
|
Deposit account service
charges
|
3,523
|
|
3,766
|
|
3,426
|
Lease income
|
1,077
|
|
1,336
|
|
775
|
Bank owned life
insurance income
|
707
|
|
702
|
|
431
|
Mortgage banking
income
|
314
|
|
281
|
|
436
|
Net loss on asset
disposals and other transactions
|
(246)
|
|
(302)
|
|
(127)
|
Net (loss) gain on
investment securities
|
(1,935)
|
|
(168)
|
|
130
|
Other non-interest
income
|
668
|
|
611
|
|
719
|
Total
non-interest income
|
19,060
|
|
19,034
|
|
20,050
|
Non-interest
expense:
|
|
|
|
|
|
Salaries and employee
benefit costs
|
32,028
|
|
28,758
|
|
27,729
|
Net occupancy and
equipment expense
|
4,955
|
|
4,847
|
|
5,088
|
Data processing and
software expense
|
4,562
|
|
5,013
|
|
2,916
|
Professional
fees
|
2,881
|
|
3,310
|
|
3,672
|
Amortization of other
intangible assets
|
1,871
|
|
1,998
|
|
1,708
|
Electronic banking
expense
|
1,491
|
|
1,097
|
|
2,759
|
Franchise tax
expense
|
1,034
|
|
546
|
|
764
|
Marketing
expense
|
930
|
|
737
|
|
995
|
FDIC insurance
premiums
|
801
|
|
781
|
|
1,194
|
Other loan
expenses
|
739
|
|
947
|
|
832
|
Communication
expense
|
613
|
|
611
|
|
625
|
Other non-interest
expense
|
4,574
|
|
4,721
|
|
3,347
|
Total
non-interest expense
|
56,479
|
|
53,366
|
|
51,629
|
Income before income
taxes
|
33,606
|
|
33,980
|
|
29,538
|
Income tax
expense
|
7,046
|
|
7,131
|
|
5,961
|
Net
income
|
$
26,560
|
|
$
26,849
|
|
$
23,577
|
|
|
|
|
|
|
PER COMMON SHARE
DATA:
|
|
|
|
|
|
Earnings per common
share – basic
|
$
0.95
|
|
$
0.96
|
|
$
0.84
|
Earnings per common
share – diluted
|
$
0.94
|
|
$
0.95
|
|
$
0.84
|
Cash dividends declared
per common share
|
$
0.38
|
|
$
0.38
|
|
$
0.36
|
Weighted-average common
shares outstanding – basic
|
27,891,760
|
|
27,843,203
|
|
28,006,165
|
Weighted-average common
shares outstanding – diluted
|
28,021,879
|
|
27,981,656
|
|
28,129,131
|
Common shares
outstanding at end of period
|
28,488,158
|
|
28,287,837
|
|
28,453,175
|
CONSOLIDATED BALANCE
SHEETS
|
|
|
March
31,
|
|
December
31,
|
|
2023
|
|
2022
|
(Dollars in
thousands)
|
(Unaudited)
|
|
|
Assets
|
|
|
|
Cash and cash
equivalents:
|
|
|
|
Cash and due
from banks
|
$
97,101
|
|
$
94,679
|
Interest-bearing
deposits in other banks
|
60,053
|
|
59,343
|
Total cash and cash equivalents
|
157,154
|
|
154,022
|
Available-for-sale
investment securities, at fair value (amortized cost of $1,196,521
at March 31, 2023 and
$1,300,719 at December 31, 2022)
(a)
|
1,049,497
|
|
1,131,399
|
Held-to-maturity
investment securities, at amortized cost (fair value of $624,436 at
March 31, 2023 and
$478,509 at December 31, 2022)
(a)
|
694,072
|
|
560,212
|
Other investment
securities
|
52,763
|
|
51,609
|
Total investment securities (a)
|
1,796,332
|
|
1,743,220
|
Loans and leases, net
of deferred fees and costs (b)
|
4,759,718
|
|
4,707,150
|
Allowance for credit
losses
|
(53,303)
|
|
(53,162)
|
Net
loans and leases
|
4,706,415
|
|
4,653,988
|
Loans held for
sale
|
2,527
|
|
2,140
|
Bank premises and
equipment, net of accumulated depreciation
|
86,567
|
|
82,934
|
Bank owned life
insurance
|
105,999
|
|
105,292
|
Goodwill
|
292,597
|
|
292,397
|
Other intangible
assets
|
31,965
|
|
33,932
|
Other assets
|
131,964
|
|
139,379
|
Total assets
|
$
7,311,520
|
|
$
7,207,304
|
Liabilities
|
|
|
|
Deposits:
|
|
|
|
Non-interest-bearing
|
$
1,555,064
|
|
$
1,589,402
|
Interest-bearing
|
4,233,463
|
|
4,127,539
|
Total deposits
|
5,788,527
|
|
5,716,941
|
Short-term
borrowings
|
490,670
|
|
500,138
|
Long-term
borrowings
|
95,629
|
|
101,093
|
Accrued expenses and
other liabilities
|
117,151
|
|
103,804
|
Total liabilities
|
6,491,977
|
|
6,421,976
|
Stockholders'
equity
|
|
|
|
Preferred shares, no
par value, 50,000 shares authorized, no shares issued at
March 31, 2023 or at
December 31, 2022
|
—
|
|
—
|
Common shares, no par
value, 50,000,000 shares authorized, 29,868,456 shares issued at
March 31, 2023 and
29,857,920 shares issued at December 31,
2022, including shares held in treasury
|
684,367
|
|
686,450
|
Retained
earnings
|
281,771
|
|
265,936
|
Accumulated other
comprehensive loss, net of deferred income taxes
|
(110,979)
|
|
(127,136)
|
Treasury stock, at
cost, 1,457,611 shares at March 31, 2023 and 1,643,461 shares
at December 31, 2022
|
(35,616)
|
|
(39,922)
|
Total stockholders' equity
|
819,543
|
|
$
785,328
|
Total liabilities and stockholders' equity
|
$
7,311,520
|
|
$
7,207,304
|
(a)
|
Available-for-sale
investment securities and held-to-maturity investment securities
are presented net of allowance for credit losses of $241 at each of
March 31, 2023 and December 31, 2022.
|
(b)
|
Also referred to
throughout this document as "total loans" and "loans held for
investment."
|
SELECTED FINANCIAL
INFORMATION (Unaudited)
|
|
|
March
31,
|
December
31,
|
September
30,
|
June
30,
|
March
31,
|
(Dollars in
thousands)
|
2023
|
2022
|
2022
|
2022
|
2022
|
Loan
Portfolio
|
|
|
|
|
|
Construction
|
$
232,296
|
$
246,941
|
$
215,621
|
$
202,588
|
$
238,305
|
Commercial real estate,
other
|
1,481,062
|
1,423,518
|
1,423,479
|
1,460,023
|
1,457,232
|
Commercial and
industrial
|
891,139
|
892,634
|
877,472
|
858,452
|
887,151
|
Premium
finance
|
158,263
|
159,197
|
167,682
|
152,237
|
145,813
|
Leases
|
354,641
|
345,131
|
312,847
|
314,522
|
267,068
|
Residential real
estate
|
712,602
|
723,360
|
733,361
|
743,005
|
756,429
|
Home equity lines of
credit
|
174,383
|
177,858
|
174,525
|
169,335
|
162,288
|
Consumer,
indirect
|
647,177
|
629,426
|
592,309
|
563,088
|
524,778
|
Consumer,
direct
|
107,406
|
108,363
|
113,314
|
111,804
|
107,390
|
Deposit account
overdrafts
|
749
|
722
|
597
|
851
|
699
|
Total loans and leases
|
$
4,759,718
|
$ 4,707,150
|
$ 4,611,207
|
$ 4,575,905
|
$ 4,547,153
|
Total acquired loans
and leases (a)
|
$
1,024,739
|
$ 1,108,728
|
$ 1,186,069
|
$ 1,304,633
|
$ 1,400,336
|
Total originated loans and leases
|
$
3,734,979
|
$ 3,598,422
|
$ 3,425,138
|
$ 3,271,272
|
$ 3,146,817
|
Deposit
Balances
|
|
|
|
|
|
Non-interest-bearing
deposits (b)
|
$
1,555,064
|
$ 1,589,402
|
$ 1,635,953
|
$ 1,661,865
|
$ 1,666,668
|
Interest-bearing
deposits:
|
|
|
|
|
|
Interest-bearing
demand accounts (b)
|
1,085,169
|
1,160,182
|
1,162,012
|
1,143,010
|
1,179,199
|
Retail
certificates of deposit
|
622,091
|
530,236
|
544,741
|
584,259
|
612,936
|
Money market
deposit accounts
|
579,106
|
617,029
|
624,708
|
645,242
|
656,266
|
Governmental
deposit accounts
|
649,303
|
625,965
|
734,734
|
728,057
|
734,784
|
Savings
accounts
|
1,024,638
|
1,068,547
|
1,077,383
|
1,080,053
|
1,065,678
|
Brokered
deposits
|
273,156
|
125,580
|
86,089
|
86,739
|
87,395
|
Total interest-bearing deposits
|
$
4,233,463
|
$ 4,127,539
|
$ 4,229,667
|
$ 4,267,360
|
$ 4,336,258
|
Total deposits
|
$
5,788,527
|
$ 5,716,941
|
$ 5,865,620
|
$ 5,929,225
|
$ 6,002,926
|
Total demand deposits
(b)
|
$
2,640,233
|
$ 2,749,584
|
$ 2,797,965
|
$ 2,804,875
|
$ 2,845,867
|
Asset
Quality
|
|
|
|
|
|
Nonperforming assets
(NPAs): (c)
|
|
|
|
|
|
Loans 90+ days
past due and accruing
|
$
4,014
|
$
4,842
|
$
8,424
|
$
8,236
|
$
5,959
|
Nonaccrual
loans
|
29,980
|
31,473
|
27,831
|
29,488
|
32,003
|
Total nonperforming loans (NPLs) (c)
|
33,994
|
36,315
|
36,255
|
37,724
|
37,962
|
Other real
estate owned (OREO)
|
8,778
|
8,895
|
8,840
|
9,210
|
9,407
|
Total NPAs
(c)
|
$
42,772
|
$
45,210
|
$
45,095
|
$
46,934
|
$
47,369
|
Criticized loans
(d)
|
$
198,920
|
$
191,355
|
$
164,775
|
$
181,395
|
$
190,315
|
Classified loans
(e)
|
93,271
|
89,604
|
94,848
|
115,483
|
109,530
|
Allowance for credit
losses as a percent of NPLs (c)
|
156.80 %
|
146.39 %
|
145.82 %
|
138.76 %
|
144.27 %
|
NPLs as a percent of
total loans (c)
|
0.71 %
|
0.77 %
|
0.79 %
|
0.82 %
|
0.83 %
|
NPAs as a percent of
total assets (c)
|
0.58 %
|
0.63 %
|
0.64 %
|
0.64 %
|
0.65 %
|
NPAs as a percent of
total loans and OREO (c)
|
0.90 %
|
0.96 %
|
0.98 %
|
1.02 %
|
1.04 %
|
Criticized loans as a
percent of total loans (d)
|
4.18 %
|
4.07 %
|
3.57 %
|
3.96 %
|
4.19 %
|
Classified loans as a
percent of total loans (e)
|
1.96 %
|
1.90 %
|
2.06 %
|
2.52 %
|
2.41 %
|
Allowance for credit
losses as a percent of total loans
|
1.12 %
|
1.13 %
|
1.15 %
|
1.14 %
|
1.20 %
|
Total demand deposits
as a percent of total deposits (b)
|
45.61 %
|
48.10 %
|
47.70 %
|
47.31 %
|
47.41 %
|
Capital Information
(f)(g)(h)(i)
|
|
|
|
|
|
Common equity tier 1
risk-based capital ratio
|
12.22 %
|
11.92 %
|
11.80 %
|
11.62 %
|
11.51 %
|
Tier 1 risk-based
capital ratio
|
12.49 %
|
12.19 %
|
12.08 %
|
11.91 %
|
11.80 %
|
Total risk-based
capital ratio (tier 1 and tier 2)
|
13.35 %
|
13.06 %
|
12.98 %
|
12.81 %
|
12.78 %
|
Tier 1 leverage
ratio
|
9.02 %
|
8.92 %
|
8.64 %
|
8.38 %
|
8.29 %
|
Common equity tier 1
capital
|
$
624,292
|
$
604,566
|
$
584,880
|
$
564,708
|
$
547,215
|
Tier 1
capital
|
638,116
|
618,354
|
598,633
|
578,425
|
560,897
|
Total capital (tier 1
and tier 2)
|
682,477
|
662,421
|
643,189
|
622,516
|
607,493
|
Total risk-weighted
assets
|
$
5,110.318
|
$ 5,071,240
|
$ 4,955,627
|
$ 4,857,818
|
$ 4,752,428
|
Total stockholders'
equity to total assets
|
11.21 %
|
10.90 %
|
10.86 %
|
10.81 %
|
11.17 %
|
Tangible equity to
tangible assets (j)
|
7.08 %
|
6.67 %
|
6.47 %
|
6.60 %
|
6.76 %
|
|
|
(a)
|
Includes all loans and
leases acquired and purchased in 2012 and thereafter.
|
(b)
|
The sum of
non-interest-bearing deposits and interest-bearing deposits is
considered total demand deposits.
|
(c)
|
Nonperforming loans and
leases include loans 90+ days past due and accruing, renegotiated
loans and nonaccrual loans. Nonperforming assets include
nonperforming loans and leases, and OREO.
|
(d)
|
Includes loans and
leases categorized as a special mention, substandard, or
doubtful.
|
(e)
|
Includes loans and
leases categorized as substandard or doubtful.
|
(f)
|
Data presented as of
the end of the period indicated.
|
(g)
|
March 31, 2023 data
based on preliminary analysis and subject to revision.
|
(h)
|
Peoples' capital
conservation buffer was 5.35% at March 31, 2023, 5.06% at December
31, 2022, 4.98% at September 30, 2022, 4.81% at June 30, 2022,
4.78% at March 31, 2022, compared to required capital conservation
buffer of 2.50%.
|
(i)
|
Peoples has adopted the
five-year transition to phase in the impact of the adoption of
CECL, effective January 1, 2020, on regulatory capital
ratios.
|
(j)
|
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 (Unaudited)
|
|
|
Three Months
Ended
|
|
March
31,
|
|
December
31,
|
|
March
31,
|
(Dollars in
thousands)
|
2023
|
|
2022
|
|
2022
|
Provision for
(recovery of) credit losses
|
|
|
|
|
|
Provision for (recovery
of) other credit losses
|
$
1,673
|
|
$
2,023
|
|
$
(7,006)
|
Provision for checking
account overdraft credit losses
|
180
|
|
278
|
|
199
|
Total provision
for (recovery of) credit losses
|
$
1,853
|
|
$
2,301
|
|
$
(6,807)
|
|
|
|
|
|
|
Net
charge-offs
|
|
|
|
|
|
Gross
charge-offs
|
$
1,855
|
|
$
2,481
|
|
$
2,333
|
Recoveries
|
311
|
|
348
|
|
423
|
Net
charge-offs
|
$
1,544
|
|
$
2,133
|
|
$
1,910
|
|
|
|
|
|
|
Net charge-offs
(recoveries) by type
|
|
|
|
|
|
Construction
|
$
9
|
|
$
16
|
|
$
—
|
Commercial real estate,
other
|
$
6
|
|
$
99
|
|
$
229
|
Commercial and
industrial
|
1
|
|
(16)
|
|
459
|
Premium
finance
|
14
|
|
38
|
|
14
|
Leases
|
389
|
|
807
|
|
297
|
Residential real
estate
|
12
|
|
124
|
|
295
|
Home equity lines of
credit
|
19
|
|
26
|
|
(13)
|
Consumer,
indirect
|
850
|
|
711
|
|
299
|
Consumer,
direct
|
89
|
|
70
|
|
125
|
Deposit account
overdrafts
|
155
|
|
258
|
|
205
|
Total net
charge-offs
|
$
1,544
|
|
$
2,133
|
|
$
1,910
|
|
|
|
|
|
|
Net charge-offs as a
percent of average total loans (annualized)
|
0.13 %
|
|
0.18 %
|
|
0.17 %
|
SUPPLEMENTAL
INFORMATION (Unaudited)
|
|
|
March
31,
|
|
December
31,
|
|
September
30,
|
|
June
30,
|
|
March
31,
|
(Dollars in
thousands)
|
2023
|
|
2022
|
|
2022
|
|
2021
|
|
2022
|
|
|
|
|
|
|
|
|
|
|
Trust assets under
administration and
management
|
$
1,803,887
|
|
$
1,764,639
|
|
$
1,682,334
|
|
$
1,731,454
|
|
$
1,927,828
|
Brokerage assets under
administration and
management
|
1,318,300
|
|
1,211,868
|
|
1,127,831
|
|
1,068,261
|
|
1,152,530
|
Mortgage loans serviced
for others
|
$
384,005
|
|
$
392,364
|
|
$
400,736
|
|
$
410,007
|
|
$
420,024
|
Employees (full-time
equivalent)
|
1,286
|
|
1,267
|
|
1,244
|
|
1,261
|
|
1,245
|
CONSOLIDATED AVERAGE
BALANCE SHEETS AND NET INTEREST INCOME (Unaudited)
|
|
|
Three Months
Ended
|
|
March 31,
2023
|
|
December 31,
2022
|
|
March 31,
2022
|
(Dollars in
thousands)
|
Average
Balance
|
Income/ Expense
|
Yield/
Cost
|
|
Average
Balance
|
Income/ Expense
|
Yield/
Cost
|
|
Average
Balance
|
Income/ Expense
|
Yield/
Cost
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
Short-term
investments
|
$
35,223
|
$
388
|
4.47 %
|
|
$ 44,421
|
$ 404
|
3.61 %
|
|
$
332,098
|
$ 160
|
0.20 %
|
Investment securities
(a)(b)
|
1,788,254
|
12,347
|
2.76 %
|
|
1,652,742
|
9,741
|
2.35 %
|
|
1,670,379
|
7,412
|
1.78 %
|
Loans
(b)(c):
|
|
|
|
|
|
|
|
|
|
|
|
Construction
|
239,492
|
3,963
|
6.62 %
|
|
234,233
|
3,596
|
6.01 %
|
|
225,676
|
2,155
|
3.82 %
|
Commercial real estate,
other
|
1,333,062
|
19,794
|
5.94 %
|
|
1,293,500
|
18,431
|
5.58 %
|
|
1,362,434
|
14,782
|
4.34 %
|
Commercial and
industrial
|
877,391
|
14,610
|
6.66 %
|
|
885,111
|
13,455
|
5.95 %
|
|
888,598
|
8,023
|
3.61 %
|
Premium
finance
|
147,895
|
2,150
|
5.81 %
|
|
161,382
|
1,898
|
4.60 %
|
|
132,758
|
1,164
|
3.51 %
|
Leases
|
342,583
|
9,643
|
11.26 %
|
|
325,113
|
8,448
|
10.17 %
|
|
162,277
|
6,102
|
15.04 %
|
Residential real estate
(d)
|
839,822
|
9,717
|
4.63 %
|
|
853,354
|
9,321
|
4.37 %
|
|
913,730
|
9,766
|
4.28 %
|
Home equity lines of
credit
|
176,327
|
2,966
|
6.82 %
|
|
177,778
|
2,723
|
6.08 %
|
|
163,339
|
1,612
|
4.00 %
|
Consumer,
indirect
|
640,359
|
7,231
|
4.58 %
|
|
612,696
|
6,834
|
4.43 %
|
|
523,770
|
5,045
|
3.91 %
|
Consumer,
direct
|
108,488
|
1,739
|
6.50 %
|
|
113,045
|
1,763
|
6.19 %
|
|
106,298
|
1,595
|
6.09 %
|
Total loans and
leases
|
4,705,419
|
71,813
|
6.12 %
|
|
4,656,212
|
66,469
|
5.62 %
|
|
4,478,880
|
50,244
|
4.50 %
|
Allowance for credit
losses
|
(52,669)
|
|
|
|
(52,253)
|
|
|
|
(61,947)
|
|
|
Net loans and
leases
|
4,652,750
|
|
|
|
4,603,959
|
|
|
|
4,416,933
|
|
|
Total earning
assets
|
6,476,227
|
84,548
|
5.23 %
|
|
6,301,122
|
76,614
|
4.79 %
|
|
6,419,410
|
57,816
|
3.61 %
|
|
|
|
|
|
|
|
|
|
|
|
|
Goodwill and other
intangible assets
|
325,545
|
|
|
|
327,377
|
|
|
|
304,124
|
|
|
Other assets
|
420,692
|
|
|
|
438,694
|
|
|
|
344,282
|
|
|
Total assets
|
$
7,222,464
|
|
|
|
$ 7,067,193
|
|
|
|
$ 7,067,816
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Equity
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
deposits:
|
|
|
|
|
|
|
|
|
|
|
|
Savings
accounts
|
$
1,044,392
|
$
136
|
0.05 %
|
|
$ 1,069,646
|
$ 138
|
0.05 %
|
|
$ 1,050,813
|
$
34
|
0.01 %
|
Governmental deposit
accounts
|
637,959
|
1,066
|
0.68 %
|
|
688,815
|
710
|
0.41 %
|
|
670,419
|
447
|
0.27 %
|
Interest-bearing demand
accounts
|
1,103,966
|
180
|
0.07 %
|
|
1,152,709
|
186
|
0.06 %
|
|
1,171,266
|
92
|
0.03 %
|
Money market deposit
accounts
|
583,574
|
825
|
0.57 %
|
|
615,460
|
522
|
0.34 %
|
|
650,272
|
97
|
0.06 %
|
Retail certificates of
deposit
|
576,645
|
1,750
|
1.23 %
|
|
534,145
|
717
|
0.53 %
|
|
626,978
|
871
|
0.56 %
|
Brokered deposits
(e)
|
224,325
|
1,704
|
3.08 %
|
|
87,934
|
515
|
2.32 %
|
|
91,531
|
512
|
2.27 %
|
Total interest-bearing
deposits
|
4,170,861
|
5,661
|
0.55 %
|
|
4,148,709
|
2,788
|
0.27 %
|
|
4,261,279
|
2,053
|
0.20 %
|
Short-term borrowings
(e)
|
471,426
|
4,457
|
3.83 %
|
|
278,188
|
1,669
|
2.38 %
|
|
154,346
|
338
|
0.89 %
|
Long-term
borrowings
|
98,477
|
1,153
|
4.69 %
|
|
101,596
|
1,132
|
4.45 %
|
|
129,098
|
724
|
2.26 %
|
Total borrowed
funds
|
569,903
|
5,610
|
3.98 %
|
|
379,784
|
2,801
|
2.93 %
|
|
283,444
|
1,062
|
1.51 %
|
Total interest-bearing
liabilities
|
4,740,764
|
11,271
|
0.96 %
|
|
4,528,493
|
5,589
|
0.49 %
|
|
4,544,723
|
3,115
|
0.28 %
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest-bearing
deposits
|
1,556,636
|
|
|
|
1,639,580
|
|
|
|
1,606,665
|
|
|
Accrued expenses and
other liabilities
|
123,599
|
|
|
|
130,470
|
|
|
|
81,676
|
|
|
Total
liabilities
|
6,420,999
|
|
|
|
6,298,543
|
|
|
|
6,233,064
|
|
|
Stockholders'
equity
|
801,465
|
|
|
|
768,650
|
|
|
|
834,752
|
|
|
Total liabilities and
stockholders' equity
|
$
7,222,464
|
|
|
|
$ 7,067,193
|
|
|
|
$ 7,067,816
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income/spread (b)
|
|
$
73,277
|
4.27 %
|
|
|
$
71,025
|
4.30 %
|
|
|
$
54,701
|
3.33 %
|
Net interest margin
(b)
|
|
|
4.53 %
|
|
|
|
4.44 %
|
|
|
|
3.41 %
|
|
|
(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 for each of the three months
ended March 31, 2023 and December 31, 2022, and a 22.9% blended
corporate income tax rate for the three months ended March 31,
2022.
|
(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 brokered deposits and interest
expense on short-term FHLB advances (included in short-term
borrowings) for all periods presented.
|
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. Peoples also
uses the non-
US GAAP financial measures for calculating incentive compensation.
The following tables summarize the non-US GAAP financial
measures derived from amounts reported in Peoples' consolidated
financial statements:
|
|
|
Three Months
Ended
|
|
March
31,
|
|
December
31,
|
|
March
31,
|
(Dollars in
thousands)
|
2023
|
|
2022
|
|
2022
|
|
|
|
|
|
|
Core non-interest
expense:
|
|
|
|
|
|
Total non-interest
expense
|
$
56,479
|
|
$
53,366
|
|
$
51,629
|
Less:
acquisition-related expenses
|
551
|
|
702
|
|
1,373
|
Less: pension
settlement charges
|
—
|
|
46
|
|
—
|
Less: COVID-19-related
expenses
|
—
|
|
2
|
|
94
|
Core non-interest
expense
|
$
55,928
|
|
$
52,616
|
|
$
50,162
|
|
Three Months
Ended
|
|
March
31,
|
|
December
31,
|
|
March
31,
|
(Dollars in
thousands)
|
2023
|
|
2022
|
|
2022
|
|
|
|
|
|
|
Efficiency
ratio:
|
|
|
|
|
|
Total non-interest
expense
|
56,479
|
|
$
53,366
|
|
51,629
|
Less: amortization of
other intangible assets
|
1,871
|
|
1,998
|
|
1,708
|
Adjusted non-interest
expense
|
$
54,608
|
|
$
51,368
|
|
$
49,921
|
|
|
|
|
|
|
Total non-interest
income
|
$
19,060
|
|
$
19,034
|
|
$
20,050
|
Less: net (loss) gain
on investment securities
|
(1,935)
|
|
(168)
|
|
130
|
Less: net loss on asset
disposals and other transactions
|
(246)
|
|
(302)
|
|
(127)
|
Total non-interest
income, excluding net gains and losses
|
$
21,241
|
|
$
19,504
|
|
$
20,047
|
|
|
|
|
|
|
Net interest
income
|
$
72,878
|
|
$
70,613
|
|
$
54,310
|
Add: fully
tax-equivalent adjustment (a)
|
399
|
|
412
|
|
391
|
Net interest income on
a fully tax-equivalent basis
|
$
73,277
|
|
$
71,025
|
|
$
54,701
|
|
|
|
|
|
|
Adjusted
revenue
|
$
94,518
|
|
$
90,529
|
|
$
74,748
|
|
|
|
|
|
|
Efficiency
ratio
|
57.78 %
|
|
56.74 %
|
|
66.79 %
|
|
|
|
|
|
|
Efficiency ratio
adjusted for non-core items:
|
|
|
|
|
Core non-interest
expense
|
$
55,928
|
|
$
52,616
|
|
$
50,162
|
Less: amortization of
other intangible assets
|
1,871
|
|
1,998
|
|
1,708
|
Adjusted core
non-interest expense
|
$
54,057
|
|
$
50,618
|
|
$
48,454
|
|
|
|
|
|
|
Adjusted
revenue
|
$
94,518
|
|
$
90,529
|
|
$
74,748
|
|
|
|
|
|
|
Efficiency ratio
adjusted for non-core items
|
57.19 %
|
|
55.91 %
|
|
64.82 %
|
|
(a) Tax effect is
calculated using a 23.3% blended corporate income tax rate for each
of the three months ended March 31, 2023 and December 31, 2022, and
a 22.9% blended corporate income tax rate for the three months
ended March 31, 2022.
|
NON-US GAAP
FINANCIAL MEASURES (Unaudited) -- (Continued)
|
|
(Dollars in
thousands, except per share data)
|
March
31,
|
December
31,
|
September
30,
|
June
30,
|
March
31,
|
2023
|
2022
|
2022
|
2022
|
2022
|
|
|
|
|
|
|
Tangible
equity:
|
|
|
|
|
|
Total stockholders'
equity
|
$
819,543
|
$
785,328
|
$
760,511
|
$
786,824
|
$
808,340
|
Less: goodwill and
other intangible assets
|
324,562
|
326,329
|
328,428
|
328,132
|
341,865
|
Tangible
equity
|
$
494,981
|
$
458,999
|
$
432,083
|
$
458,692
|
$
466,475
|
|
|
|
|
|
|
Tangible
assets:
|
|
|
|
|
|
Total assets
|
$
7,311,520
|
$
7,207,304
|
$ 7,005,854
|
$
7,278,292
|
$
7,239,261
|
Less: goodwill and
other intangible assets
|
324,562
|
326,329
|
328,428
|
328,132
|
341,865
|
Tangible
assets
|
$
6,986,958
|
$
6,880,975
|
$ 6,677,426
|
$
6,950,160
|
$
6,897,396
|
|
|
|
|
|
|
Tangible book value
per common share:
|
|
|
|
|
|
Tangible
equity
|
$
494,981
|
$
458,999
|
$
432,083
|
$
458,692
|
$
466,475
|
Common shares
outstanding
|
28,488,158
|
28,287,837
|
28,278,078
|
28,290,115
|
28,453,175
|
|
|
|
|
|
|
Tangible book value per
common share
|
$
17.37
|
$
16.23
|
$
15.28
|
$
16.21
|
$
16.39
|
|
|
|
|
|
|
Tangible equity to
tangible assets ratio:
|
|
|
Tangible
equity
|
$
494,981
|
$
458,999
|
$
432,083
|
$
458,692
|
$
466,475
|
Tangible
assets
|
$
6,986,958
|
$
6,880,975
|
$ 6,677,426
|
$
6,950,160
|
$
6,897,396
|
|
|
|
|
|
|
Tangible equity to
tangible assets ratio
|
7.08 %
|
6.67 %
|
6.47 %
|
6.60 %
|
6.76 %
|
|
Three Months
Ended
|
|
March
31,
|
|
December
31,
|
|
March
31,
|
(Dollars in
thousands, except per share data)
|
2023
|
|
2022
|
|
2022
|
|
|
|
|
|
|
Pre-provision net
revenue:
|
|
|
|
|
|
Income before income
taxes
|
$
33,606
|
|
$
33,980
|
|
$
29,538
|
Add: provision for
credit losses
|
1,853
|
|
2,301
|
|
—
|
Add: loss on
OREO
|
10
|
|
—
|
|
1
|
Add: loss on investment
securities
|
1,935
|
|
168
|
|
—
|
Add: loss on other
assets
|
229
|
|
278
|
|
22
|
Add: net loss on other
transactions
|
7
|
|
23
|
|
104
|
Less: recovery of
credit losses
|
—
|
|
—
|
|
6,807
|
Less: gain on
investment securities
|
—
|
|
—
|
|
130
|
Pre-provision net
revenue
|
$
37,640
|
|
$
36,750
|
|
$
22,728
|
Total average
assets
|
$ 7,222,464
|
|
$
7,067,193
|
|
$ 7,067,816
|
|
|
|
|
|
|
Pre-provision net
revenue to total average assets
(annualized)
|
2.11 %
|
|
2.06 %
|
|
1.30 %
|
|
|
|
|
|
|
Weighted-average common
shares outstanding – diluted
|
28,021,879
|
|
27,981,656
|
|
28,129,131
|
Pre-provision net
revenue per common share – diluted
|
$1.34
|
|
$1.31
|
|
$0.81
|
NON-US GAAP
FINANCIAL MEASURES (Unaudited) -- (Continued)
|
|
|
Three Months
Ended
|
|
March
31,
|
|
December
31,
|
|
March
31,
|
(Dollars in
thousands)
|
2023
|
|
2022
|
|
2022
|
|
|
|
|
|
|
Annualized net
income adjusted for non-core items:
|
Net income
|
$
26,560
|
|
$
26,849
|
|
$
23,577
|
Add: loss on investment
securities
|
1,935
|
|
168
|
|
—
|
Less: tax effect of
loss on investment securities (a)
|
406
|
|
35
|
|
—
|
Less: gain on
investment securities
|
—
|
|
—
|
|
130
|
Add: tax effect of net
gain on investment securities (a)
|
—
|
|
—
|
|
27
|
Add: net loss on asset
disposals and other transactions
|
246
|
|
302
|
|
127
|
Less: tax effect of net
loss on asset disposals and other transactions
(a)
|
52
|
|
63
|
|
27
|
Add:
acquisition-related expenses
|
551
|
|
702
|
|
1,373
|
Less: tax effect of
acquisition-related expenses (a)
|
116
|
|
147
|
|
288
|
Add: pension settlement
charges
|
—
|
|
46
|
|
—
|
Less: tax effect of
pension settlement charges (a)
|
—
|
|
10
|
|
—
|
Add: COVID-19-related
expenses
|
—
|
|
2
|
|
94
|
Less: tax effect of
COVID-19-related expenses (a)
|
—
|
|
—
|
|
20
|
Net income adjusted for
non-core items (after tax)
|
$
28,718
|
|
$
27,814
|
|
$
24,733
|
|
|
|
|
|
|
Days in the
period
|
90
|
|
92
|
|
90
|
Days in the
year
|
365
|
|
365
|
|
365
|
Annualized net
income
|
$
107,716
|
|
$ 106,520
|
|
$
95,618
|
Annualized net income
adjusted for non-core items (after tax)
|
$
116,467
|
|
$ 110,349
|
|
$
100,306
|
Return on average
assets:
|
|
|
|
|
|
Annualized net
income
|
$
107,716
|
|
$ 106,520
|
|
$
95,618
|
Total average
assets
|
$
7,222,464
|
|
$
7,067,193
|
|
$
7,067,816
|
Return on average
assets
|
1.49 %
|
|
1.51 %
|
|
1.35 %
|
Return on average
assets adjusted for non-core items:
|
Annualized net income
adjusted for non-core items (after tax)
|
$
116,467
|
|
$ 110,349
|
|
$
100,306
|
Total average
assets
|
$
7,222,464
|
|
$
7,067,193
|
|
$
7,067,816
|
Return on average
assets adjusted for non-core items
|
1.61 %
|
|
1.56 %
|
|
1.42 %
|
|
(a) Tax effect is
calculated using a 21% statutory federal corporate income tax
rate.
|
NON-US GAAP
FINANCIAL MEASURES (Unaudited) -- (Continued)
|
|
|
Three Months
Ended
|
|
March
31,
|
|
December
31,
|
|
March
31,
|
(Dollars in
thousands)
|
2023
|
|
2022
|
|
2022
|
|
|
|
|
|
|
Annualized net
income excluding amortization of other intangible
assets:
|
Net income
|
$
26,560
|
|
$
26,849
|
|
$
23,577
|
Add: amortization of
other intangible assets
|
1,871
|
|
1,998
|
|
1,708
|
Less: tax effect of
amortization of other intangible assets (a)
|
393
|
|
420
|
|
359
|
Net income excluding
amortization of other intangible assets (after
tax)
|
$
28,038
|
|
$
28,427
|
|
$
24,926
|
|
|
|
|
|
|
Days in the
period
|
90
|
|
92
|
|
90
|
Days in the
year
|
365
|
|
365
|
|
365
|
Annualized net
income
|
$ 107,716
|
|
$
106,520
|
|
$
95,618
|
Annualized net income
excluding amortization of other intangible
assets (after tax)
|
$ 113,710
|
|
$
112,781
|
|
$ 101,089
|
|
|
|
|
|
|
Average tangible
equity:
|
Total average
stockholders' equity
|
$ 801,465
|
|
$
768,650
|
|
$ 834,752
|
Less: average goodwill
and other intangible assets
|
325,545
|
|
327,377
|
|
304,124
|
Average tangible
equity
|
$ 475,920
|
|
$
441,273
|
|
$ 530,628
|
|
|
|
|
|
|
Return on total
average stockholders' equity ratio:
|
Annualized net
income
|
$ 107,716
|
|
$
106,520
|
|
$
95,618
|
Total average
stockholders' equity
|
$ 801,465
|
|
$
768,650
|
|
$ 834,752
|
|
|
|
|
|
|
Return on total average
stockholders' equity ratio
|
13.44 %
|
|
13.86 %
|
|
11.45 %
|
|
Return on average
tangible equity ratio:
|
Annualized net income
excluding amortization of other intangible
assets (after tax)
|
$ 113,710
|
|
$
112,781
|
|
$ 101,089
|
Average tangible
equity
|
$ 475,920
|
|
$
441,273
|
|
$ 530,628
|
|
|
|
|
|
|
Return on average
tangible equity ratio
|
23.89 %
|
|
25.56 %
|
|
19.05 %
|
|
(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-first-quarter-2023-results-301806130.html
SOURCE Peoples Bancorp Inc.