MARIETTA, Ohio, July 23,
2024 /PRNewswire/ -- Peoples Bancorp Inc. ("Peoples")
(NASDAQ: PEBO) today announced results for the quarter ended
June 30, 2024. Net income totaled
$29.0 million for the second quarter
of 2024, representing earnings per diluted common share of
$0.82. In comparison, Peoples
reported net income of $29.6 million,
representing earnings per diluted common share of $0.84, for the first quarter of 2024 and net
income of $21.1 million, representing
earnings per diluted common share of $0.64, for the second quarter of 2023.
"We are pleased with our results for the quarter, in particular
our loan growth and continued stable credit metrics. Additionally,
we are very honored to be recognized by Newsweek for being awarded
one of America's Best Regional Banks and one of America's Greatest
Workplaces, one of only five banks being recognized for both
awards," said Tyler Wilcox,
President and Chief Executive Officer. "We continue to focus on
creating a top tier workplace while producing solid and consistent
performance."
Statement of Operations Highlights:
- Net interest income for the second quarter of 2024 was
relatively consistent when compared to the linked quarter, with
higher interest income offset by higher funding costs.
- Net interest margin decreased to 4.18% for the second quarter
of 2024, compared to 4.26% for the linked quarter driven by lower
accretion income.
- Peoples recorded a provision for credit losses of
$5.7 million for the second quarter
of 2024, compared to a provision for credit losses of $6.1 million for the first quarter of
2024.
- The provision for credit losses negatively impacted earnings
per diluted common share by $0.13 for
the second quarter of 2024 and $0.14
for the first quarter of 2024.
- Total non-interest income, excluding net gains and
losses, decreased $1.6 million, or
6%, for the second quarter of 2024 compared to the linked
quarter.
- The decrease was primarily driven by lower insurance income due
to annual contingency income recognized in the first quarter of
each year.
- Total non-interest expense for the second quarter of 2024
increased $0.3 million compared to
the linked quarter.
- The efficiency ratio for the second quarter of 2024 was 59.2%,
compared to 58.1% for the linked quarter.
Balance Sheet Highlights:
- Period-end total loan and lease balances at June 30, 2024 increased $122.5 million, or 8% annualized, compared to at
March 31, 2024.
- The increase was driven by growth in (i) premium finance loans,
(ii) commercial and industrial loans, (iii) constructions loans,
and (iv) consumer indirect loans, partially offset by a decrease in
other commercial real estate loans.
- Asset quality metrics remained stable during the second
quarter of 2024.
- Delinquency trends improved compared to March 31, 2024.
- Criticized and classified loans both decreased and were driven
by the paydowns of previously downgraded commercial and industrial
relationships.
- Annualized net charge-offs were 0.27% of average total loans,
representing a return to pre-pandemic levels.
- Period-end total deposit balances at June 30, 2024 decreased $28.8 million compared to at March 31, 2024
- Excluding a decrease in brokered certificates of deposit of
$70.8 million, core deposits were up
$42.0 million compared to the linked
quarter, driven by an increase in retail certificates of deposits
and higher money market deposit accounts.
- Total loan balances were 87% of total deposit balances at
June 30, 2024, compared to 85% at
March 31, 2024.
Completion of the Limestone Merger:
As of the close of
business on April 30, 2023, Peoples
completed its previously announced merger with Limestone Bancorp,
Inc. ("Limestone"), a bank holding company headquartered in
Louisville, Kentucky, and the
parent company of Limestone Bank, pursuant to a definitive
Agreement and Plan of Merger (the "Merger Agreement") dated
October 24, 2022. Under the terms of
the Merger Agreement, Limestone merged with and into Peoples, and
immediately thereafter Limestone Bank merged with and into Peoples'
wholly-owned subsidiary, Peoples Bank (collectively, the "Limestone
Merger"), in a transaction valued at $177.9
million. Peoples recorded acquisition-related expenses,
primarily related to the Limestone Merger, which included
$(0.1) million and $10.7 million in other non-interest expense for
the three months ended March 31,
2024, and three months ended June 30,
2023, respectively. There was no such expense for the three
months ended June 30, 2024. For the
six months ended June 30, 2024,
Peoples recorded acquisition expenses of $(0.1) million compared to $11.3 million for the six months ended
June 30, 2023.
Net Interest Income
Net interest income was
$86.6 million for the second quarter
of 2024 and was relatively flat when compared to the linked
quarter. Net interest margin was 4.18% for the second quarter of
2024, compared to 4.26% for the linked quarter. The decrease in net
interest margin was primarily driven by a decrease in accretion
income, net of amortization, from acquisitions and higher borrowing
costs, which offset higher earning asset yields.
Net interest income for the second quarter of 2024 increased
$1.8 million, or 2%, compared to the
second quarter of 2023. The increase in net interest income
compared to the second quarter of 2023 was driven by increases in
market interest rates, the Limestone Merger, and organic growth.
Net interest margin decreased 36 basis points when compared to the
second quarter of 2023, driven primarily by an increase in interest
expense on deposits.
Accretion income, net of amortization expense, from acquisitions
was $5.8 million for the second
quarter of 2024, $6.5 million for the
first quarter of 2024 and $4.5
million for the second quarter of 2023, which added 29 basis
points, 32 basis points and 24 basis points, respectively, to net
interest margin. The decrease in accretion income for the second
quarter of 2024 when compared to the linked quarter was primarily
driven by lower pay-offs. The increase in accretion income for
the current quarter compared to the second quarter of 2023 was a
result of the accretion from the Limestone Merger.
For the first six months of 2024, net interest income increased
$15.5 million, or 10%, compared to
the first six months of 2023, while net interest margin decreased
31 basis points to 4.22%. The increase in net interest income was
driven by increases in market interest rates and an additional four
months of income from the Limestone Merger. The decrease in net
interest margin for the first six months of 2024 compared to the
first six months of 2023 was primarily driven by higher borrowing
costs, which offset higher earning asset yields.
Accretion income, net of amortization expense, from acquisitions
was $12.3 million for the six months
ended June 30, 2024, compared to $6.5
million for the six months ended June 30, 2023, which
added 30 and 18 basis points, respectively, to net interest margin.
The increase in accretion income for the first six months of 2024
compared to the same period in 2023 was due to more accretion in
2024 from the Limestone Merger.
Provision for Credit Losses:
The provision for credit
losses was $5.7 million for the
second quarter of 2024, compared to $6.1 million for the linked quarter and
$8.0 million for the second
quarter of 2023. The provision for credit losses for the second
quarter of 2024 was a result of (i) higher net charge-offs, (ii) an
increase of reserves on individually analyzed loans and leases, and
(iii) loan growth. The provision for credit losses for the first
quarter of 2024 was driven by (i) a deterioration in macro-economic
conditions used within the current expected credit loss ("CECL")
model, (ii) an increase of reserves on individually analyzed loans
and leases and (iii) loan growth. The decrease in the provision for
credit losses for the second quarter of 2024 compared to the second
quarter of 2023, was largely attributable to the provision for
loans acquired in the Limestone Merger recorded in the second
quarter of 2023, as well as a reduction in the reserves for
individually analyzed loans and leases, offset by loan growth, an
increase in net charges-offs and economic forecast
deterioration.
The provision for credit losses during the first six months of
2024 was $11.8 million, compared
to a provision for credit losses of $9.8 million for the first six months of
2023. The provision for credit losses during the first six months
of 2024 was mainly a result of (i) higher net charge-offs, (ii) an
increase in reserves on individually analyzed loans and leases and
(iii) loan growth. The provision for credit losses during the first
six months of 2023 was driven by (i) the addition of the provision
for the non-purchased credit deteriorated loans acquired in the
Limestone Merger, (ii) loan growth and (iii) economic forecast
deterioration, partially offset by a reduction in the reserves for
individually analyzed loans and leases and the use of updated loss
drivers.
The provision for 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 $0.13 for the
second quarter of 2024, $0.14 for the
first quarter of 2024, and $0.19 for
the second quarter of 2023. For the first six months of 2024, the
provision negatively impacted earnings per diluted common share by
$0.27, compared to $0.25 for the first six months of 2023.
For additional information on net charge-offs, 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. The net loss for the
second quarter of 2024 was $0.8 million, compared to a net loss of
$0.3 million for the linked
quarter, and a net loss of $1.8
million for the second quarter of 2023. The net loss for the
second quarter of 2024 was driven primarily by $0.4 million of net losses on repossessed assets.
The net loss for the linked quarter was primarily due to $0.3
million of net losses on repossessed assets. The second quarter of
2023 net loss was primarily driven by a $1.6
million write-down of an other real estate owned ("OREO")
property.
The net loss realized during the first six months of 2024 was
$1.1 million, compared to a net
loss realized of $4.0 million
for the first six months of 2023. The net loss for the first six
months of 2024 was primarily driven by the $0.7 million of net losses on repossessed assets
mentioned above. The net loss recognized in the first six months of
2023 was primarily driven by a $2.0
million pre-tax net loss on the sale of available-for-sale
investment securities and the $1.6
million write-down of an OREO property mentioned above.
Total Non-interest Income, Excluding Net Gains and
Losses:
Total non-interest income, excluding net gains and
losses, for the second quarter of 2024 decreased $1.6 million compared to the linked quarter. The
decrease in non-interest income, excluding net gains and losses,
was primarily impacted by a decrease of $2.4
million in insurance income due to seasonal
performance-based commissions being paid in the first quarter of
each year. Partially offsetting the decrease was an increase of
$0.4 million in each of electronic
banking income and trust and investment income, respectively. Total
non-interest income, excluding net gains and losses, for the second
quarter of 2024 was 22% of total revenue (defined as net interest
income plus total non-interest income excluding net gains and
losses) compared to 23% for the first quarter of 2023.
Compared to the second quarter of 2023, total non-interest
income, excluding net gains and losses, increased $1.6 million, primarily due to a
$1.1 million increase in other
non-interest income, driven by operating lease income, and a
$0.6 million increase in trust and
investment income, partially offset by a $0.6 million decrease in lease income. The
increases for the second quarter of 2024, when compared to the
second quarter of 2023, were primarily due to the additional
customers brought in from the Limestone Merger and increases of
assets under administration and management.
For the first six months of 2024, total non-interest income,
excluding gains and losses, increased $6.5
million, or 15%, compared to the first six months of 2023.
The increase was driven by (i) a $2.1
million increase in other non-interest income, driven by
operating lease income, (ii) a $1.2
million increase in insurance income, (iii) a $1.1 million increase in trust and investment
income, (iv) a $1.0 million increase
in bank owned life insurance income, (v) a $0.9 million increase in deposit account service
charge income, and (vi) a $0.6
million increase in electronic banking income, offset by a
$0.4 million decrease in lease
income. The increases for the first six months of 2024, when
compared to the first six months of 2023, were primarily due to the
additional customers brought in from the Limestone Merger,
increases of assets under administration and management, higher
contingency income, and market increases for premiums.
Total Non-interest Expense:
Total non-interest expense
increased $0.3 million for the second
quarter of 2024, compared to the linked quarter. The increase in
total non-interest expense was primarily due to increases of
$2.2 million in other non-interest
expense driven by a one-time $1.3
million true-up of corporate expenses and $1.0 million in data processing and software
expense driven by higher expenses attributable to recent technology
projects, partially offset by a decrease of $2.3 million in salaries and employee benefit
costs. The decrease in salaries and employee benefits costs was due
to 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.
Compared to the second quarter of 2023, total non-interest
expense decreased $1.9 million, or
3%. Excluding acquisition-related expenses, non-interest expenses
increased $8.8 million, or 15%,
primarily due to increases of $3.7
million in salaries and employee benefits costs due to
additional employees added in the Limestone Merger, and
$2.0 million in data processing and
software expense due to the recent growth, including through
acquisitions.
For the six months of 2024, total non-interest expense increased
$10.1 million, or 8%, compared to the
first six months of 2023. Excluding acquisition-related expenses,
non-interest expenses increased $21.5
million, or 19%, primarily due to increases of $10.5 million in salaries and employee benefits
costs due to additional employees added in the Limestone Merger,
and $3.2 million and $2.1 million in data processing and software
expense and in net occupancy and equipment expense, respectively,
due to recent growth, included through acquisitions.
The table below summarizes the amount of acquisition-related
expenses for each line item that is a component of non-interest
expense. Acquisition-related expenses are considered a non-core
non-interest expense by Peoples. This information is used by
Peoples to provide information useful to investors in understanding
Peoples' operating performance and trends.
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June
30
|
|
March
31
|
|
June
30
|
|
June
30
|
|
2024
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
(Dollars in
thousands)
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
Non-interest
expense:
|
|
|
|
|
|
|
|
|
|
Salaries and employee
benefit costs
|
$
36,564
|
|
$
38,893
|
|
$
38,025
|
|
$
75,457
|
|
$
70,053
|
Data processing and
software expense
|
6,743
|
|
5,769
|
|
4,728
|
|
12,512
|
|
9,290
|
Net occupancy and
equipment expense
|
6,142
|
|
6,283
|
|
5,380
|
|
12,425
|
|
10,335
|
Professional
fees
|
2,935
|
|
2,967
|
|
7,438
|
|
5,902
|
|
10,319
|
Amortization of other
intangible assets
|
2,787
|
|
2,788
|
|
2,800
|
|
5,575
|
|
4,671
|
Electronic banking
expense
|
1,941
|
|
1,781
|
|
1,832
|
|
3,722
|
|
3,323
|
Marketing
expense
|
681
|
|
1,056
|
|
1,357
|
|
1,737
|
|
2,287
|
FDIC insurance
premiums
|
1,251
|
|
1,186
|
|
1,464
|
|
2,437
|
|
2,265
|
Franchise tax
expense
|
760
|
|
881
|
|
872
|
|
1,641
|
|
1,906
|
Communication
expense
|
736
|
|
799
|
|
724
|
|
1,535
|
|
1,337
|
Other loan
expenses
|
1,036
|
|
1,076
|
|
538
|
|
2,112
|
|
1,277
|
Other non-interest
expense
|
7,182
|
|
4,986
|
|
5,465
|
|
12,168
|
|
10,039
|
Total
non-interest expense
|
68,758
|
|
68,465
|
|
70,623
|
|
137,223
|
|
127,102
|
Acquisition-related
non-interest expense:
|
|
|
|
|
|
|
|
|
|
Salaries and employee
benefit costs
|
—
|
|
16
|
|
5,125
|
|
16
|
|
5,146
|
Data processing and
software expense
|
—
|
|
(18)
|
|
1
|
|
(18)
|
|
1
|
Net occupancy and
equipment expense
|
—
|
|
—
|
|
20
|
|
—
|
|
29
|
Professional
fees
|
—
|
|
(38)
|
|
4,812
|
|
(38)
|
|
5,103
|
Electronic banking
expense
|
—
|
|
(100)
|
|
115
|
|
(100)
|
|
115
|
Marketing
expense
|
—
|
|
10
|
|
13
|
|
10
|
|
23
|
Other loan
expenses
|
—
|
|
—
|
|
1
|
|
—
|
|
1
|
Other non-interest
expense
|
—
|
|
46
|
|
622
|
|
46
|
|
842
|
Total
acquisition-related non-interest expense
|
—
|
|
(84)
|
|
10,709
|
|
(84)
|
|
11,260
|
Non-interest expense
excluding acquisition-related expense:
|
|
|
|
|
|
|
|
|
|
Salaries and employee
benefit costs
|
36,564
|
|
38,877
|
|
32,900
|
|
75,441
|
|
64,907
|
Data processing and
software expense
|
6,743
|
|
5,787
|
|
4,727
|
|
12,530
|
|
9,289
|
Net occupancy and
equipment expense
|
6,142
|
|
6,283
|
|
5,360
|
|
12,425
|
|
10,306
|
Professional
fees
|
2,935
|
|
3,005
|
|
2,626
|
|
5,940
|
|
5,216
|
Amortization of other
intangible assets
|
2,787
|
|
2,788
|
|
2,800
|
|
5,575
|
|
4,671
|
Electronic banking
expense
|
1,941
|
|
1,881
|
|
1,717
|
|
3,822
|
|
3,208
|
Marketing
expense
|
681
|
|
1,046
|
|
1,344
|
|
1,727
|
|
2,264
|
FDIC insurance
premiums
|
1,251
|
|
1,186
|
|
1,464
|
|
2,437
|
|
2,265
|
Franchise tax
expense
|
760
|
|
881
|
|
872
|
|
1,641
|
|
1,906
|
Communication
expense
|
736
|
|
799
|
|
724
|
|
1,535
|
|
1,337
|
Other loan
expenses
|
1,036
|
|
1,076
|
|
537
|
|
2,112
|
|
1,276
|
Other non-interest
expense
|
7,182
|
|
4,940
|
|
4,843
|
|
12,122
|
|
9,197
|
Total non-interest
expense excluding acquisition-related expense
|
$
68,758
|
|
$
68,549
|
|
$
59,914
|
|
$
137,307
|
|
$
115,842
|
|
|
|
|
|
|
|
|
|
|
The efficiency ratio for the second quarter of 2024 was 59.2%,
compared to 58.1% for the linked quarter and 62.7% for the second
quarter of 2023. The efficiency ratio improved compared to the
prior year quarter due to the decrease in acquisition-related
expenses. The efficiency ratio, adjusted for non-core items,
was 59.2% for the second quarter of 2024, compared to 58.1% for the
linked quarter, and 53.3% for the second quarter of 2023. The
efficiency ratio and the adjusted for non-core items efficiency
ratio increased compared to the linked quarter increased mainly as
the result of a reduction in non-interest income. The
efficiency ratio for the first six months of 2024 was 58.6%,
compared to 60.4% for the first six months of 2023. The efficiency
ratio improved compared to the prior year first six months due
to the decrease in acquisition-related expenses. The efficiency
ratio, adjusted for non-core items, was 58.7% for the first six
months of 2024, compared to 55.2% for the first six months of 2023.
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 $6.9
million with an effective tax rate of 19.1% for the second
quarter of 2024, compared to income tax expense of $8.3 million with an effective tax rate of 21.8%
for the linked quarter and income tax expense of $6.2 million with an effective tax rate of 22.6%
for the second quarter of 2023. The decrease in income tax expense
when compared to the prior quarter was driven by a $1.1 million one-time benefit related to a prior
year amended return. The increase in income tax expense when
compared to the second quarter of 2023 was primarily due to higher
pre-tax income. Peoples recorded income tax expense of $15.1 million with an effective tax rate of 20.5%
for the first six months of 2024 and $13.2
million with an effective tax rate of 21.7% in the first six
months of 2023. The increase was driven by higher pre-tax
income.
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 June 30,
2024 increased $2.7 million when
compared to at March 31, 2024, increased $70.8 million when compared to at December 31, 2023, and decreased $14.3 million when compared to at June 30,
2023. The decrease in the balance when compared to at June 30,
2023, was driven by principal payment reductions. The balances of
unrealized losses, net of tax, on available-for-sale investment
securities recognized within accumulated other comprehensive loss
were $112.7 million, $111.8 million, and $121.5
million at June 30, 2024, at March 31, 2024, and
at June 30, 2023, respectively.
The held-to-maturity investment securities balance at
June 30, 2024 decreased $22.5
million and increased $18.3
million and $28.1 million when
compared to at March 31, 2024, at December 31, 2023 and at June 30, 2023,
respectively. The decrease when compared to the linked quarter was
driven by principal payments. The increase when compared to
June 30, 2023 was primarily driven by
higher yielding, longer duration securities booked
as held-to-maturity. The balances of net unrealized losses on
held-to-maturity investment securities were $79.4 million, $77.4
million, and $81.1 million at
June 30, 2024, at March 31, 2024, and at June 30,
2023, respectively.
The effective duration of the investment portfolio as of
June 30, 2024 was estimated to be 5.26 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.
Peoples maintains a number of liquid and liquefiable assets,
borrowing capacity, and other sources of liquidity to ensure the
availability of funds. At June 30, 2024, Peoples had liquid
and liquefiable assets totaling $607.0
million, which included (i) cash and cash equivalents, (ii)
unpledged government and agency investment securities and (iii)
unpledged non-agency investment securities that could be
liquidated. At June 30, 2024, Peoples had a borrowing capacity
of $727.3 million available through
the Federal Home Loan Bank ("FHLB"), the Federal Reserve Bank
("FRB"), and federal funds. Additionally at June 30, 2024,
Peoples had other contingent sources of liquidity totaling
$2.7 billion. Cash and cash
equivalents decreased $190.9 million
when compared to December 31, 2023
due to an improvement in other inputs in our aforementioned
liquidity metrics, specifically unencumbered securities, driven by
the migration of deposit balances to insured cash sweep accounts
("ICS"), freeing up investment securities previously held as
collateral against those balances, and requiring less cash to be
held on the balance sheet.
Loans and Leases:
The period-end total loan and lease
balances at June 30, 2024 increased $122.5 million, or 8% annualized, compared to at
March 31, 2024. The increase in the period-end total loan and
lease balances was primarily driven by increases of (i)
$54.4 million in premium finance
loans, (ii) $43.4 million in
commercial and industrial loans, (iii) $25.9
million in construction loans, (iv) $24.8 million in indirect consumer loans,
partially offset by a reduction of $47.8
million in other commercial real estate loans.
The period-end total loan and lease balances at June 30, 2024 increased $166.2 million compared to at December 31, 2023, primarily driven by growth of
$90.2 million, $73.1 million, and $18.9
million in premium finance loans, commercial and industrial
loans, and home equity lines of credit, respectively, partially
offset by a decrease of $23.4 million
in construction loans.
The period-end total loan and lease balances at June 30,
2024 increased $350.8 million
compared to at June 30, 2023, primarily driven by organic
growth in our premium finance, other commercial real estate,
commercial and industrial, and lease portfolios of $130.1 million, $124.5
million, $97.8 million, and
$52.9, respectively.
Quarterly average total loan balances increased $73.5 million compared to the linked quarter. The
increase in average total loan balances when compared to the linked
quarter was primarily the result of growth of (i) $50.1 million in premium finance loans,
(ii) $27.1 million in commercial and
industrial loans,and (iii) $9.9
million in leases, partially offset by reductions of
$10.5 million in construction loans,
$5.4 million in residential real
estate loans, and $5.0 million
in consumer direct loans.
Compared to the second quarter of 2023, quarterly average loan
balances in the current quarter increased $0.7 billion, or 12%. The increase was driven by
loans acquired in the Limestone Merger, and to a lesser extent,
organic growth in other commercial real estate loans, commercial
and industrial loans, premium finance loans, and leases.
Asset Quality:
Overall, asset quality remained
relatively stable through the second quarter of 2024. Delinquency
trends remained stable as loans considered current comprised 98.8%,
98.7%, and 99.0% of the loan portfolio at June 30, 2024, at
March 31, 2024, and and at June 30, 2023, respectively.
Total nonperforming assets at June 30, 2024 increased
$2.4 million, or 5%, compared to at
March 31, 2024, and increased $6.8
million, or 16%, compared to at June 30, 2023. The
increase in nonperforming assets compared to the linked quarter was
primarily due to an increase in the balance of nonaccrual
small-ticket leases, produced by our North Star Leasing business,
and other commercial real estate loans. The increase in
nonperforming assets compared to at June 30, 2023, was
impacted by the increase of small-ticket nonaccrual leases and an
increase in loans past due and accruing. Nonperforming assets as a
percent of total loans and OREO was 0.77% at June 30, 2024,
compared to 0.74% at March 31, 2024, and 0.70% at
June 30, 2023.
Criticized loans, which are those categorized as special
mention, substandard or doubtful, decreased $16.6 million, or 6%, compared to at March 31, 2024, increased $4.7 million, or 2%, compared to at December 31, 2023, and increased $20.1 million, or 9%, compared to at June 30, 2023. As a percent of total loans,
criticized loans were 3.79% at June 30,
2024, compared to 4.14% at March 31,
2024, 3.82% at December 31,
2023, and 3.68% at June 30,
2023. The decrease in the amount of criticized loans
compared to at March 31, 2024 and at
December 31, 2023 was primarily
driven by paydowns on previously downgraded loans. Compared to
June 30, 2023, the increase in the
amount of criticized loans was primarily driven by loan
downgrades.
Classified loans, which are those categorized as substandard or
doubtful, decreased $27.3 million, or
19%, compared to at March 31, 2024, increased $0.2 million compared to at December 31, 2023, and increased
$9.2 million, or 8%, compared to at
June 30, 2023. As a percent of total loans, classified loans
were 1.90% at June 30, 2024, compared to 2.38% at
March 31, 2024, 1.95% at December 31,
2023, and 1.86% at June 30, 2023. The decrease in
classified loans compared to at March 31, 2024 was driven by
paydowns and two upgrades in the commercial portfolio. The increase
in classified loans when compared to at June 30, 2023, was
primarily driven by loan downgrades.
Annualized net charge-offs were 0.27% of average total loans for
the second quarter of 2024, compared to 0.22% for the linked
quarter, and 0.09% for the second quarter of 2023. The increase
relative to the linked quarter was driven by an increase in
charge-offs on small-ticket leases partially offset
by decreases in net charge-offs on commercial and industrial
loans and other commercial real estate loans. The increase in net
charge-offs during the second quarter of 2024 versus the prior year
second quarter was primarily attributable to an increase in
charge-offs on (i) small-tickets leases, (ii) indirect consumer
loans, (iii) commercial and industrial loans, and (iv) other
commercial real estate loans.
At June 30, 2024, the allowance for credit losses increased
$1.4 million when compared to at
March 31, 2024, increased $4.2
million when compared to at December
31, 2023, and increased $5.0
million when compared to at June 30, 2023. The increase
in the allowance for credit losses at June 30, 2024 when
compared to at March 31, 2024 and at December 31, 2023 was primarily due to an
increase on reserves for individually analyzed loans and leases.
The increase in the allowance balance at June 30, 2024 when
compared to June 30, 2023 was driven by loan growth and a
deterioration in macro-economic conditions used within the CECL
model, partially offset by a release of reserves on individually
analyzed loans and leases. The ratio of the allowance for credit
losses as a percent of total loans was 1.05% at June 30, 2024,
compared to 1.05% at March 31, 2024, and 1.02% at
June 30, 2023.
Deposits:
As of June 30, 2024, period-end total
deposits decreased $28.8 million
compared to at March 31, 2024. The decrease was primarily
driven by decreases of (i) $70.8
million in brokered certificates of deposit, (ii)
$58.8 million in governmental deposit
accounts, and (iii) $24.2
million in interest-bearing demand deposit accounts,
partially offset by an increase of $132.5 million in retail certificates of deposit.
The increase in retail certificates of deposits was due to current
specials being offered, while the decrease in governmental deposit
accounts was due to the seasonality of those balances, which are
typically higher in the first quarter. Excluding a decrease in
brokered certificates of deposit of $70.8
million, deposits were up $42.0
million compared to the linked quarter, driven by the
aforementioned increase in retail certificates of deposits and
higher money market deposit accounts.
Compared to December 31, 2023,
period-end total deposits increased $145.5
million, or 2%. The increase was primarily driven by
increases of $369.5 million in retail
certificates of deposit and $93.7
million in money market deposit accounts, partially offset
by decreases of $162.8 million in
brokered certificates of deposits, $95.0
million in non-interest bearing deposits and $60.8 million in interest bearing demand
accounts.
Compared to June 30, 2023, period-end deposit balances
increased $337.9 million, or 5%. The
increase was primarily driven by increases of $862.1 million in retail certificates of deposit,
$150.5 million in money market
deposit accounts, and $60.7 million
in governmental deposit accounts, offset by decreases of
$236.1 million, $209.9 million, $147.3
million, and $142.1 million in
savings accounts, non-interest bearing deposits, brokered
certificates of deposit, and interest-bearing demand deposit
accounts, respectively. The increase in retail certificates of
deposits was driven by current promotions being offered.
The percentages of retail deposit balances and commercial
deposit balances of the total deposit balance at June 30, 2024
were 78% and 22%, respectively, compared to 76% and 24%,
respectively, at March 31, 2024, and 78% and 22%,
respectively, at June 30, 2023.
Uninsured deposits were 30%, 32%, and 32% of total deposits
at June 30, 2024, at March 31, 2024, and at June 30,
2023, respectively. Uninsured amounts are estimated based on the
portion of customer account balances that exceeded the FDIC limit
of $250,000. Peoples pledges
investment securities against certain governmental deposit
accounts, which collateralized $748.3 million, or 38%, $865.6 million, or 42%, and $749.9 million, or 38% of the uninsured deposit
balances at June 30, 2024, at March 31, 2024, and at
June 30, 2023, respectively.
Average deposit balances during the second quarter of 2024
increased $120.2 million when
compared to the linked quarter, and increased $0.7 billion, or 11%, when compared to the second
quarter of 2023. The increase in average deposit balances compared
to the linked quarter was driven by increases of $160.8 million in retail certificates of
deposits, $65.6 million in money
market deposit accounts, and $32.0
million in governmental deposits, partially offset by
decreases of $86.7 million in
brokered certificates of deposits and $24.9
million in non-interest bearing deposits. Total demand
deposit accounts comprised 35%, 35% and 42% of total deposits at
June 30, 2024, at March 31, 2024 and at June 30,
2023, respectively.
Stockholders' Equity:
Total stockholders' equity at
June 30, 2024 increased $15.8
million, or 1%, compared to at March 31, 2024. This
change was primarily driven by net income of $29.0 million during the quarter, partially
offset by dividends paid of $14.2
million. The increase 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 June 30,
2024 increased $24.3 million,
or 2%, compared to at December 31,
2023, which was due to net income of $58.6 million in the first six months of 2024,
partially offset by dividends paid of $27.9
million and an increase of $8.6
million in accumulated other comprehensive loss.
Total stockholders' equity at June 30, 2024 increased
$78.9 million, or 8%, compared to at
June 30, 2023, which was due to net income of $124.3 million in the last twelve months and a
decrease in other comprehensive loss of $8.7
million, partially offset by dividends paid of $55.9 million.
At June 30, 2024, the tier 1 risk-based capital ratio was
12.55%, compared to 12.50% at March 31, 2024, and 12.10% at
June 30, 2023. The common equity tier 1 risk-based capital
ratio was 11.76% at June 30, 2024, compared to 11.69% at
March 31, 2024, and 11.36% at June 30, 2023. The total
risk-based capital ratio was 13.47% at June 30, 2024, compared
to 13.40% at March 31, 2024, and 12.92% at June 30, 2023.
Peoples adopted the five-year transition to phase in the impact of
the adoption of CECL on regulatory capital ratios. Compared to at
March 31, 2024, and at June 31,
2023, these ratios improved due to net income during the
second quarter of 2024, partially offset by dividends paid.
At June 30, 2024, book value per common share and tangible
book value per common share, which excludes goodwill and other
intangible assets, were $30.36 and
$18.91, respectively, compared to
$29.93 and $18.39, respectively, at March 31, 2024, and
$28.24 and $16.56, respectively, at June 30, 2023. The
ratio of total stockholders' equity to total assets increased 21
basis points when compared to March 31, 2024. The tangible
equity to tangible assets ratio, which excludes goodwill and other
intangible assets, increased 24 basis points when compared to at
March 31, 2024. Compared to at June 30, 2023, the total
stockholders' equity to total assets ratio increased from 11.37% to
11.68%, and the tangible equity to tangible assets ratio increased
from 7.00% to 7.61%. The ratios increased compared to at
June 30, 2023, primarily due to net income over the last
twelve months.
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 $9.2
billion in total assets as of June 30, 2024, and 150
locations, including 130 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 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
second quarter 2024 results of operations on July 23, 2024, 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 and earnings conference call
presentation 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 a non-US GAAP financial measure
since it excludes the impact of acquisition-related expenses and
COVID-19 employee retention credit.
- 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, COVID-19 employee retention
credit, 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, and COVID-19
employee retention credit 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 and acquisition-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 factors include, but are not limited to:
(1)
|
the effects of 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;
|
(2)
|
the effects of
inflationary pressures and the impact of rising interest rates on
borrowers' liquidity and ability to repay;
|
(3)
|
the success, impact,
and timing of the implementation of Peoples' business strategies
and Peoples' ability to manage strategic initiatives, including the
interest rate policies of the Federal Reserve Board, the completion
and successful integration of acquisitions, and the expansion of
commercial and consumer lending activities;
|
(4)
|
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;
|
(5)
|
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
acquired companies to a variety of new and more stringent legal and
regulatory requirements;
|
(6)
|
the effects of easing
restrictions on participants in the financial services
industry;
|
(7)
|
current and future
local, regional, national and international economic conditions
(including the impact of persistent inflation, supply chain issues
or labor shortages, supply-demand imbalances affecting local real
estate prices, high unemployment rates in the local or regional
economies in which Peoples operates and/or the U.S. economy
generally, an increasing federal government budget deficit, the
failure of the federal government to raise the federal debt
ceiling, 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;
|
(8)
|
Peoples may issue
equity securities in connection with future acquisitions, which
could cause ownership and economic dilution to Peoples' current
shareholders;
|
(9)
|
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 continued elevated interest rates, and may adversely
impact the amount of interest income generated;
|
(10)
|
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;
|
(11)
|
future credit quality
and performance, including expectations regarding future credit
losses and the allowance for credit losses;
|
(12)
|
changes in accounting
standards, policies, estimates or procedures may adversely affect
Peoples' reported financial condition or results of
operations;
|
(13)
|
the impact of
assumptions, estimates and inputs used within models, which may
vary materially from actual outcomes, including under the CECL
model;
|
(14)
|
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;
|
(15)
|
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;
|
(16)
|
Peoples' ability to
receive dividends from Peoples' subsidiaries;
|
(17)
|
Peoples' ability to
maintain required capital levels and adequate sources of funding
and liquidity;
|
(18)
|
the impact of larger or
similar-sized financial institutions encountering problems, such as
the failure in 2024 of Republic First Bank, and closures in 2023 of
Silicon Valley Bank in California, Signature Bank in New York and
First Republic Bank in California, which may adversely affect the
banking industry and/or Peoples' business generation and retention,
funding and liquidity, including Peoples' continued ability to grow
deposits or maintain adequate deposit levels, and may further
result in potential increased regulatory requirements, increased
reputational risk and potential impacts to macroeconomic
conditions;
|
(19)
|
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;
|
(20)
|
any misappropriation of
the confidential information which Peoples possesses could have an
adverse impact on Peoples' business and could result in regulatory
actions, litigation and other adverse effects;
|
(21)
|
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;
|
(22)
|
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;
|
(23)
|
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;
|
(24)
|
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;
|
(25)
|
the impact on Peoples'
businesses, personnel, facilities or systems of losses related to
acts of fraud, theft, misappropriation or violence;
|
(26)
|
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
(including Russia's war in Ukraine and the ongoing conflicts in the
Middle East);
|
(27)
|
the potential
deterioration of the U.S. economy due to financial, political or
other shocks;
|
(28)
|
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;
|
(29)
|
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;
|
(30)
|
risks and uncertainties
associated with Peoples' entry into new geographic markets and
risks resulting from Peoples' inexperience in these new geographic
markets;
|
(31)
|
Peoples' ability to
integrate the Limestone Merger, which may be unsuccessful, or may
be more difficult, time-consuming or costly than
expected;
|
(32)
|
the risk that expected
revenue synergies and cost savings from the Limestone Merger may
not be fully realized or realized within the expected time
frame;
|
(33)
|
changes in laws or
regulations imposed by Peoples' regulators impacting Peoples'
capital actions, including dividend payments and share
repurchases;
|
(34)
|
the vulnerability of
Peoples' network and online banking portals, and the systems of
parties with whom Peoples contracts, to unauthorized access,
computer viruses, phishing schemes, spam attacks, human error,
natural disasters, power loss and other security
breaches;
|
(35)
|
Peoples' business may
be adversely affected by increased political and regulatory
scrutiny of corporate environmental, social and governance ("ESG")
practices;
|
(36)
|
the effect of a fall in
stock market prices on the asset and wealth management business;
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, 2023. 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 U.S. GAAP, Peoples is required to evaluate the
impact of subsequent events through the issuance date of its
June 30, 2024 consolidated financial
statements as part of its Quarterly Report on Form 10-Q to be filed
with the SEC. Accordingly, subsequent events could occur that may
cause Peoples to update its critical accounting estimates and to
revise its financial information from the estimates and information
contained in this news release.
PER COMMON SHARE
DATA AND SELECTED RATIOS (Unaudited)
|
|
|
At or For the Three
Months Ended
|
|
At or For the Six
Months Ended
|
|
June
30,
|
|
March
31,
|
|
June
30,
|
|
June
30,
|
|
2024
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
PER COMMON
SHARE:
|
|
|
|
|
|
|
|
|
|
Earnings per common
share:
|
|
|
|
|
|
|
|
|
|
Basic
|
$ 0.83
|
|
$ 0.85
|
|
$ 0.64
|
|
$ 1.67
|
|
$
1.57
|
Diluted
|
0.82
|
|
0.84
|
|
0.64
|
|
1.66
|
|
1.56
|
Cash dividends declared
per common share
|
0.40
|
|
0.39
|
|
0.39
|
|
0.79
|
|
0.77
|
Book value per common
share (a)
|
30.36
|
|
29.93
|
|
28.24
|
|
30.36
|
|
28.24
|
Tangible book value per
common share (a)(b)
|
18.91
|
|
18.39
|
|
16.56
|
|
18.91
|
|
16.56
|
Closing price of common
shares at end of period
|
$ 30.00
|
|
$ 29.61
|
|
$ 26.55
|
|
$ 30.00
|
|
$ 26.55
|
|
|
|
|
|
|
|
|
|
|
SELECTED
RATIOS:
|
|
|
|
|
|
|
|
|
|
Return on average
stockholders' equity (c)
|
10.99 %
|
|
11.30 %
|
|
8.89 %
|
|
11.15 %
|
|
10.96 %
|
Return on average
tangible equity (c)(d)
|
19.21 %
|
|
19.91 %
|
|
16.56 %
|
|
19.55 %
|
|
19.90 %
|
Return on average
assets (c)
|
1.27 %
|
|
1.32 %
|
|
1.01 %
|
|
1.29 %
|
|
1.23 %
|
Return on average
assets adjusted for non-core items (c)(e)
|
1.30 %
|
|
1.33 %
|
|
1.47 %
|
|
1.31 %
|
|
1.53 %
|
Efficiency ratio
(f)(i)
|
59.19 %
|
|
58.06 %
|
|
62.75 %
|
|
58.62 %
|
|
60.44 %
|
Efficiency ratio
adjusted for non-core items (g)(i)
|
59.19 %
|
|
58.14 %
|
|
53.35 %
|
|
58.66 %
|
|
55.15 %
|
Pre-provision net
revenue to total average assets (c)(h)
|
1.85 %
|
|
1.97 %
|
|
1.78 %
|
|
1.91 %
|
|
1.93 %
|
Net interest margin
(c)(i)
|
4.18 %
|
|
4.26 %
|
|
4.54 %
|
|
4.22 %
|
|
4.54 %
|
Dividend payout ratio
(j)
|
48.94 %
|
|
46.46 %
|
|
63.62 %
|
|
47.69 %
|
|
50.67 %
|
|
|
(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, and COVID-19
employee retention credit. 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
acquisition-related expenses, COVID-19 employee retention credit,
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)
|
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)
|
Interest income and
yields are presented on a fully tax-equivalent basis, using a 21%
statutory federal corporate income tax rate.
|
(j)
|
This ratio is
calculated based on dividends declared during the period divided by
net income for the period.
|
CONSOLIDATED
STATEMENTS OF INCOME
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June
30,
|
|
March
31,
|
|
June
30,
|
|
June
30,
|
|
2024
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
(Dollars in
thousands, except per share data)
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
Total interest
income
|
$
130,770
|
|
$
127,593
|
|
$
106,417
|
|
$
258,363
|
|
$
190,566
|
Total interest
expense
|
44,157
|
|
40,953
|
|
21,564
|
|
85,110
|
|
32,835
|
Net interest
income
|
86,613
|
|
86,640
|
|
84,853
|
|
173,253
|
|
157,731
|
Provision for credit
losses
|
5,683
|
|
6,102
|
|
7,983
|
|
11,785
|
|
9,836
|
Net interest income
after provision for credit losses
|
80,930
|
|
80,538
|
|
76,870
|
|
161,468
|
|
147,895
|
|
|
|
|
|
|
|
|
|
|
Non-interest
income:
|
|
|
|
|
|
|
|
|
|
Electronic banking
income
|
6,470
|
|
6,046
|
|
6,466
|
|
12,516
|
|
11,909
|
Trust and investment
income
|
4,999
|
|
4,599
|
|
4,414
|
|
9,598
|
|
8,498
|
Deposit account service
charges
|
4,339
|
|
4,223
|
|
4,153
|
|
8,562
|
|
7,676
|
Insurance
income
|
4,109
|
|
6,498
|
|
4,004
|
|
10,607
|
|
9,429
|
Lease income
|
1,116
|
|
1,236
|
|
1,719
|
|
2,352
|
|
2,796
|
Bank owned life
insurance income
|
1,037
|
|
1,500
|
|
842
|
|
2,537
|
|
1,549
|
Mortgage banking
income
|
243
|
|
321
|
|
189
|
|
564
|
|
503
|
Net loss on investment
securities
|
(353)
|
|
(1)
|
|
(166)
|
|
(354)
|
|
(2,101)
|
Net loss on asset
disposals and other transactions
|
(428)
|
|
(341)
|
|
(1,665)
|
|
(769)
|
|
(1,911)
|
Other non-interest
income
|
2,172
|
|
1,698
|
|
1,059
|
|
3,870
|
|
1,727
|
Total
non-interest income
|
23,704
|
|
25,779
|
|
21,015
|
|
49,483
|
|
40,075
|
|
|
|
|
|
|
|
|
|
|
Non-interest
expense:
|
|
|
|
|
|
|
|
|
|
Salaries and employee
benefit costs
|
36,564
|
|
38,893
|
|
38,025
|
|
75,457
|
|
70,053
|
Data processing and
software expense
|
6,743
|
|
5,769
|
|
4,728
|
|
12,512
|
|
9,290
|
Net occupancy and
equipment expense
|
6,142
|
|
6,283
|
|
5,380
|
|
12,425
|
|
10,335
|
Professional
fees
|
2,935
|
|
2,967
|
|
7,438
|
|
5,902
|
|
10,319
|
Amortization of other
intangible assets
|
2,787
|
|
2,788
|
|
2,800
|
|
5,575
|
|
4,671
|
Electronic banking
expense
|
1,941
|
|
1,781
|
|
1,832
|
|
3,722
|
|
3,323
|
FDIC insurance
expense
|
1,251
|
|
1,186
|
|
1,464
|
|
2,437
|
|
2,265
|
Other loan
expenses
|
1,036
|
|
1,076
|
|
538
|
|
2,112
|
|
1,277
|
Franchise tax
expense
|
760
|
|
881
|
|
872
|
|
1,641
|
|
1,906
|
Communication
expense
|
736
|
|
799
|
|
724
|
|
1,535
|
|
1,337
|
Marketing
expense
|
681
|
|
1,056
|
|
1,357
|
|
1,737
|
|
2,287
|
Other non-interest
expense
|
7,182
|
|
4,986
|
|
5,465
|
|
12,168
|
|
10,039
|
Total
non-interest expense
|
68,758
|
|
68,465
|
|
70,623
|
|
137,223
|
|
127,102
|
Income before
income taxes
|
35,876
|
|
37,852
|
|
27,262
|
|
73,728
|
|
60,868
|
Income tax
expense
|
6,869
|
|
8,268
|
|
6,166
|
|
15,137
|
|
13,212
|
Net
income
|
$
29,007
|
|
$
29,584
|
|
$
21,096
|
|
$
58,591
|
|
$
47,656
|
CONSOLIDATED STATEMENTS
OF INCOME (Cont.)
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June
30,
|
|
March
31,
|
|
June
30,
|
|
June
30,
|
|
2024
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
(Dollars in
thousands, except per share data)
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
PER COMMON SHARE
DATA:
|
|
|
|
|
|
|
|
|
|
Net income available to
common shareholders
|
$
29,007
|
|
$
29,584
|
|
$
21,096
|
|
$
58,591
|
|
$
47,656
|
Less: Dividends paid on
unvested common shares
|
218
|
|
143
|
|
144
|
|
361
|
|
246
|
Less: Undistributed
loss allocated to unvested common shares
|
55
|
|
64
|
|
13
|
|
119
|
|
45
|
Net earnings allocated
to common shareholders
|
$
28,734
|
|
$
29,377
|
|
$
20,939
|
|
$
58,111
|
|
$
47,365
|
|
|
|
|
|
|
|
|
|
|
Weighted-average common
shares outstanding
|
34,764,489
|
|
34,740,349
|
|
32,526,962
|
|
34,752,419
|
|
30,222,165
|
Effect of potentially
dilutive common shares
|
353,159
|
|
311,461
|
|
123,014
|
|
319,131
|
|
92,339
|
Total weighted-average
diluted common shares outstanding
|
35,117,648
|
|
35,051,810
|
|
32,649,976
|
|
35,071,550
|
|
30,314,504
|
|
|
|
|
|
|
|
|
|
|
Earnings per common
share – basic
|
$
0.83
|
|
$
0.85
|
|
$
0.64
|
|
$
1.67
|
|
$
1.57
|
Earnings per common
share – diluted
|
$
0.82
|
|
$
0.84
|
|
$
0.64
|
|
$
1.66
|
|
$
1.56
|
Cash dividends declared
per common share
|
$
0.40
|
|
$
0.39
|
|
$
0.39
|
|
$
0.79
|
|
$
0.77
|
|
|
|
|
|
|
|
|
|
|
Weighted-average common
shares outstanding – basic
|
34,764,489
|
|
34,740,349
|
|
32,526,962
|
|
34,752,419
|
|
30,222,165
|
Weighted-average common
shares outstanding – diluted
|
35,117,648
|
|
35,051,810
|
|
32,649,976
|
|
35,071,550
|
|
30,314,504
|
Common shares
outstanding at the end of period
|
35,498,977
|
|
35,486,234
|
|
35,374,916
|
|
35,498,977
|
|
35,374,916
|
CONSOLIDATED BALANCE
SHEETS
|
|
|
June
30,
|
|
December
31,
|
|
2024
|
|
2023
|
(Dollars in
thousands)
|
(Unaudited)
|
|
|
Assets
|
|
|
|
Cash and cash
equivalents:
|
|
|
|
Cash and due
from banks
|
$
119,981
|
|
$
111,680
|
Interest-bearing
deposits in other banks
|
115,890
|
|
315,042
|
Total cash and cash equivalents
|
235,871
|
|
426,722
|
Available-for-sale
investment securities, at fair value (amortized cost of
|
|
|
|
$1,266,060 at
June 30, 2024 and $1,184,288 at December 31, 2023)
(a)
|
1,119,139
|
|
1,048,322
|
Held-to-maturity
investment securities, at amortized cost (fair value of
|
|
|
|
$622,593 at
June 30, 2024 and $612,022 at December 31, 2023)
(a)
|
701,984
|
|
683,657
|
Other investment
securities, at cost
|
62,742
|
|
63,421
|
Total investment securities (a)
|
1,883,865
|
|
1,795,400
|
Loans and leases, net
of deferred fees and costs (b)
|
6,325,371
|
|
6,159,196
|
Allowance for credit
losses
|
(66,247)
|
|
(62,011)
|
Net
loans and leases
|
6,259,124
|
|
6,097,185
|
Loans held for
sale
|
3,832
|
|
1,866
|
Bank premises and
equipment, net of accumulated depreciation
|
106,589
|
|
103,856
|
Bank owned life
insurance
|
142,605
|
|
140,554
|
Goodwill
|
362,169
|
|
362,169
|
Other intangible
assets
|
44,248
|
|
50,003
|
Other assets
|
188,158
|
|
179,627
|
Total assets
|
$
9,226,461
|
|
$
9,157,382
|
Liabilities
|
|
|
|
Deposits:
|
|
|
|
Non-interest-bearing
|
$
1,472,697
|
|
$
1,567,649
|
Interest-bearing
|
5,825,077
|
|
5,584,648
|
Total deposits
|
7,297,774
|
|
7,152,297
|
Short-term
borrowings
|
482,733
|
|
601,121
|
Long-term
borrowings
|
234,257
|
|
216,241
|
Accrued expenses and
other liabilities
|
133,864
|
|
134,189
|
Total liabilities
|
$
8,148,628
|
|
$
8,103,848
|
|
|
|
|
Stockholders'
Equity
|
|
|
|
Preferred shares, no
par value, 50,000 shares authorized, no shares issued at
June 30, 2024 or
at December 31, 2023
|
—
|
|
—
|
Common shares, no par
value, 50,000,000 shares authorized, 36,760,516 shares issued
at
June 30, 2024 and 36,736,041 shares issued at December 31, 2023,
including shares in treasury
|
863,975
|
|
865,227
|
Retained
earnings
|
357,886
|
|
327,237
|
Accumulated other
comprehensive loss, net of deferred income taxes
|
(110,193)
|
|
(101,590)
|
Treasury stock, at
cost, 1,347,476 common shares at June 30, 2024 and 1,511,348
common
shares at December 31, 2023
|
(33,835)
|
|
(37,340)
|
Total stockholders' equity
|
1,077,833
|
|
1,053,534
|
Total liabilities and stockholders' equity
|
$
9,226,461
|
|
$
9,157,382
|
|
|
|
|
|
|
(a)
|
Available-for-sale
investment securities and held-to-maturity investment securities
are presented net of allowance for credit losses of $0 and $238,
respectively, as of June 30, 2024 and $0 and $238, respectively, as
of December 31, 2023.
|
(b)
|
Also referred to
throughout this document as "total loans" and "loans held for
investment."
|
SELECTED FINANCIAL
INFORMATION (Unaudited)
|
|
|
June
30,
|
March
31,
|
December
31,
|
September
30,
|
June
30,
|
(Dollars in
thousands)
|
2024
|
2024
|
2023
|
2023
|
2023
|
Loan
Portfolio
|
|
|
|
|
|
Construction
|
$
340,601
|
$
314,687
|
$
364,019
|
$
374,016
|
$
418,741
|
Commercial real estate,
other
|
2,195,979
|
2,243,780
|
2,196,957
|
2,189,984
|
2,071,514
|
Commercial and
industrial
|
1,258,063
|
1,214,615
|
1,184,986
|
1,128,809
|
1,160,310
|
Premium
finance
|
293,349
|
238,962
|
203,177
|
189,251
|
162,357
|
Leases
|
430,651
|
422,694
|
414,060
|
402,635
|
377,791
|
Residential real
estate
|
789,344
|
781,888
|
791,095
|
791,965
|
791,442
|
Home equity lines of
credit
|
227,608
|
221,079
|
208,675
|
203,940
|
199,221
|
Consumer,
indirect
|
675,054
|
650,228
|
666,472
|
668,371
|
654,371
|
Consumer,
direct
|
113,655
|
113,588
|
128,769
|
134,562
|
138,019
|
Deposit account
overdrafts
|
1,067
|
1,306
|
986
|
857
|
830
|
Total loans and leases
|
$
6,325,371
|
$
6,202,827
|
$ 6,159,196
|
$ 6,084,390
|
$ 5,974,596
|
Total acquired loans
and leases (a)
|
$
1,686,784
|
$
1,757,169
|
$ 1,825,129
|
$ 1,925,554
|
$ 2,032,505
|
Total originated loans and leases
|
$
4,638,587
|
$
4,445,658
|
$ 4,334,067
|
$ 4,158,836
|
$ 3,942,091
|
Deposit
Balances
|
|
|
|
|
|
Non-interest-bearing
deposits (b)
|
$
1,472,697
|
$
1,468,363
|
$ 1,567,649
|
$ 1,569,095
|
$ 1,682,634
|
Interest-bearing
deposits:
|
|
|
|
|
|
Interest-bearing
demand accounts (b)
|
1,083,512
|
1,107,712
|
1,144,357
|
1,181,079
|
1,225,646
|
Retail
certificates of deposit
|
1,812,874
|
1,680,413
|
1,443,417
|
1,198,733
|
950,783
|
Money market
deposit accounts
|
869,159
|
859,961
|
775,488
|
730,902
|
718,633
|
Governmental
deposit accounts
|
766,337
|
825,170
|
726,713
|
761,625
|
705,596
|
Savings
accounts
|
880,542
|
901,493
|
919,244
|
987,170
|
1,116,622
|
Brokered
deposits
|
412,653
|
483,444
|
575,429
|
608,914
|
559,955
|
Total interest-bearing deposits
|
$
5,825,077
|
$
5,858,193
|
$ 5,584,648
|
$ 5,468,423
|
$ 5,277,235
|
Total deposits
|
$
7,297,774
|
$
7,326,556
|
$ 7,152,297
|
$ 7,037,518
|
$ 6,959,869
|
Total demand deposits
(b)
|
$
2,556,209
|
$
2,576,075
|
$ 2,712,006
|
$ 2,750,174
|
$ 2,908,280
|
Asset
Quality
|
|
|
|
|
|
Nonperforming assets
(NPAs):
|
|
|
|
|
|
Loans 90+ days
past due and accruing
|
$
7,592
|
$
7,662
|
$
6,716
|
$
9,117
|
$
5,924
|
Nonaccrual
loans
|
33,669
|
31,361
|
25,477
|
26,187
|
28,796
|
Total nonperforming loans (NPLs) (f)
|
41,261
|
39,023
|
32,193
|
35,304
|
34,720
|
Other real
estate owned (OREO)
|
7,409
|
7,238
|
7,174
|
7,174
|
7,166
|
Total NPAs
|
$
48,670
|
$
46,261
|
$
39,367
|
$
42,478
|
$
41,886
|
Criticized loans
(c)
|
$
239,943
|
$
256,565
|
$
235,239
|
$
213,156
|
$
219,885
|
Classified loans
(d)
|
120,180
|
147,518
|
120,027
|
124,836
|
110,972
|
Allowance for credit
losses as a percent of NPLs (f)
|
160.56 %
|
166.11 %
|
194.38 %
|
178.23 %
|
176.30 %
|
NPLs as a percent of
total loans (f)
|
0.65 %
|
0.63 %
|
0.52 %
|
0.58 %
|
0.58 %
|
NPAs as a percent of
total assets (f)
|
0.53 %
|
0.50 %
|
0.43 %
|
0.48 %
|
0.48 %
|
NPAs as a percent of
total loans and OREO (f)
|
0.77 %
|
0.74 %
|
0.64 %
|
0.70 %
|
0.70 %
|
Criticized loans as a
percent of total loans (c)
|
3.79 %
|
4.14 %
|
3.82 %
|
3.50 %
|
3.68 %
|
Classified loans as a
percent of total loans (d)
|
1.90 %
|
2.38 %
|
1.95 %
|
2.05 %
|
1.86 %
|
Allowance for credit
losses as a percent of total loans
|
1.05 %
|
1.05 %
|
1.01 %
|
1.03 %
|
1.02 %
|
Total demand deposits
as a percent of total deposits (b)
|
35.03 %
|
35.16 %
|
37.92 %
|
39.08 %
|
41.79 %
|
Capital Information
(e)(g)(i)
|
|
|
|
|
|
Common equity tier 1
capital ratio (h)
|
11.76 %
|
11.69 %
|
11.75 %
|
11.57 %
|
11.36 %
|
Tier 1 risk-based
capital ratio
|
12.55 %
|
12.50 %
|
12.58 %
|
12.31 %
|
12.10 %
|
Total risk-based
capital ratio (tier 1 and tier 2)
|
13.47 %
|
13.40 %
|
13.38 %
|
13.14 %
|
12.92 %
|
Leverage
ratio
|
9.65 %
|
9.43 %
|
9.57 %
|
9.34 %
|
9.64 %
|
Common equity tier 1
capital
|
$
799,710
|
$
780,017
|
$
766,691
|
$
752,728
|
$
728,892
|
Tier 1
capital
|
854,050
|
834,089
|
820,495
|
801,010
|
776,753
|
Total capital (tier 1
and tier 2)
|
916,073
|
894,662
|
873,225
|
855,054
|
828,910
|
Total risk-weighted
assets
|
$
6,802,528
|
$
6,674,114
|
$ 6,524,577
|
$ 6,505,779
|
$ 6,417,511
|
Total stockholders'
equity to total assets
|
11.68 %
|
11.46 %
|
11.50 %
|
11.11 %
|
11.37 %
|
Tangible equity to
tangible assets (j)
|
7.61 %
|
7.37 %
|
7.33 %
|
6.85 %
|
7.00 %
|
|
|
(a)
|
Includes all loans and
leases acquired and purchased in 2012 and thereafter.
|
(b)
|
The sum of
non-interest-bearing deposits and interest-bearing demand accounts
is considered total demand deposits.
|
(c)
|
Includes loans
categorized as special mention, substandard, or
doubtful.
|
(d)
|
Includes loans
categorized as substandard or doubtful.
|
(e)
|
Data presented as of
the end of the period indicated.
|
(f)
|
Nonperforming loans
include loans 90+ days past due and accruing, renegotiated loans
and nonaccrual loans. Nonperforming assets include nonperforming
loans and OREO.
|
(g)
|
June 30, 2024 data
based on preliminary analysis and subject to revision.
|
(h)
|
Peoples' capital
conservation buffer was 5.66% at June 30, 2024, 5.60% at March 31,
2024, 5.38% at December 31, 2023, 5.14% at September 30, 2023, and
4.92% at June 30, 2023, 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
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
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June
30,
|
|
March
31,
|
|
June
30,
|
|
June
30,
|
|
2024
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
(Dollars in
thousands)
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
Provision for credit
losses
|
|
|
|
|
|
|
|
|
|
Provision for credit
losses
|
$
5,397
|
|
$
5,834
|
|
$
7,751
|
|
$
11,231
|
|
$
9,424
|
Provision for checking
account overdrafts
|
286
|
|
268
|
|
232
|
|
554
|
|
412
|
Total provision
for credit losses
|
$
5,683
|
|
$
6,102
|
|
$
7,983
|
|
$
11,785
|
|
$
9,836
|
|
|
|
|
|
|
|
|
|
|
Net
Charge-Offs
|
|
|
|
|
|
|
|
|
|
Gross
charge-offs
|
$
4,607
|
|
$
3,874
|
|
$
2,041
|
|
$
8,481
|
|
$
3,896
|
Recoveries
|
374
|
|
554
|
|
845
|
|
928
|
|
1,156
|
Net
charge-offs
|
$
4,233
|
|
$
3,320
|
|
$
1,196
|
|
$
7,553
|
|
$
2,740
|
|
|
|
|
|
|
|
|
|
|
Net Charge-Offs
(Recoveries) by Type
|
|
|
|
|
|
|
|
|
|
Construction
|
$
—
|
|
$
—
|
|
$
—
|
|
$
—
|
|
$
9
|
Commercial real estate,
other
|
80
|
|
129
|
|
(9)
|
|
209
|
|
(3)
|
Commercial and
industrial
|
46
|
|
228
|
|
(440)
|
|
274
|
|
(439)
|
Premium
finance
|
51
|
|
46
|
|
20
|
|
97
|
|
34
|
Leases
|
2,204
|
|
1,058
|
|
515
|
|
3,262
|
|
904
|
Residential real
estate
|
(4)
|
|
(3)
|
|
(10)
|
|
(7)
|
|
2
|
Home equity lines of
credit
|
9
|
|
(7)
|
|
55
|
|
2
|
|
74
|
Consumer,
indirect
|
1,450
|
|
1,390
|
|
812
|
|
2,840
|
|
1,662
|
Consumer,
direct
|
126
|
|
217
|
|
43
|
|
343
|
|
132
|
Deposit account
overdrafts
|
271
|
|
262
|
|
210
|
|
533
|
|
365
|
Total net
charge-offs
|
$
4,233
|
|
$
3,320
|
|
$
1,196
|
|
$
7,553
|
|
$
2,740
|
|
|
|
|
|
|
|
|
|
|
As a percent of average
total loans (annualized)
|
0.27 %
|
|
0.22 %
|
|
0.09 %
|
|
0.24 %
|
|
0.11 %
|
SUPPLEMENTAL
INFORMATION (Unaudited)
|
|
|
June
30,
|
|
March
31,
|
|
December
31,
|
|
September
30,
|
|
June
30,
|
(Dollars in
thousands)
|
2024
|
|
2024
|
|
2023
|
|
2023
|
|
2023
|
|
|
|
|
|
|
|
|
|
|
Trust assets under
administration and management
|
$
2,071,832
|
|
$
2,061,402
|
|
$
2,021,249
|
|
$
1,900,488
|
|
$
1,931,789
|
Brokerage assets under
administration and
management
|
1,567,775
|
|
1,530,954
|
|
1,473,814
|
|
1,364,372
|
|
1,379,309
|
Mortgage loans serviced
for others
|
341,298
|
|
348,937
|
|
356,784
|
|
366,996
|
|
375,882
|
Employees (full-time
equivalent)
|
1,489
|
|
1,498
|
|
1,478
|
|
1,482
|
|
1,500
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED AVERAGE
BALANCE SHEETS AND NET INTEREST INCOME (Unaudited)
|
|
|
Three Months
Ended
|
|
June 30,
2024
|
|
March 31,
2024
|
|
June 30,
2023
|
(Dollars in
thousands)
|
Balance
|
Income/
Expense
|
Yield/
Cost
|
|
Balance
|
Income/
Expense
|
Yield/
Cost
|
|
Balance
|
Income/
Expense
|
Yield/
Cost
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
Short-term
investments
|
$
178,094
|
$
2,502
|
5.65 %
|
|
$
142,381
|
$
1,922
|
5.43 %
|
|
$ 58,245
|
$ 673
|
4.64 %
|
Investment securities
(a)(b)
|
1,870,372
|
16,144
|
3.45 %
|
|
1,832,599
|
15,234
|
3.33 %
|
|
1,873,944
|
14,240
|
3.04 %
|
Loans
(b)(c):
|
|
|
|
|
|
|
|
|
|
|
|
Construction
|
328,943
|
6,595
|
7.93 %
|
|
339,448
|
6,404
|
7.46 %
|
|
358,732
|
6,491
|
7.16 %
|
Commercial real estate,
other
|
2,074,718
|
36,420
|
6.94 %
|
|
2,076,219
|
37,242
|
7.10 %
|
|
1,735,466
|
28,240
|
6.44 %
|
Commercial and
industrial
|
1,230,290
|
23,897
|
7.68 %
|
|
1,203,196
|
23,515
|
7.73 %
|
|
1,069,529
|
19,561
|
7.24 %
|
Premium
finance
|
260,513
|
5,746
|
8.73 %
|
|
210,405
|
4,564
|
8.58 %
|
|
154,557
|
2,659
|
6.81 %
|
Leases
|
419,764
|
11,982
|
11.29 %
|
|
409,870
|
12,067
|
11.65 %
|
|
359,016
|
10,276
|
11.32 %
|
Residential real estate
(d)
|
925,629
|
11,460
|
4.95 %
|
|
930,989
|
11,322
|
4.86 %
|
|
921,012
|
10,818
|
4.70 %
|
Home equity lines of
credit
|
225,362
|
4,612
|
8.23 %
|
|
216,743
|
4,297
|
7.97 %
|
|
191,915
|
3,656
|
7.64 %
|
Consumer,
indirect
|
656,405
|
9,669
|
5.92 %
|
|
656,244
|
9,281
|
5.69 %
|
|
651,669
|
7,943
|
4.89 %
|
Consumer,
direct
|
119,048
|
2,095
|
7.08 %
|
|
124,091
|
2,098
|
6.80 %
|
|
123,899
|
2,247
|
7.27 %
|
Total loans
|
6,240,672
|
112,476
|
7.16 %
|
|
6,167,205
|
110,790
|
7.13 %
|
|
5,565,795
|
91,891
|
6.55 %
|
Allowance for credit
losses
|
(64,745)
|
|
|
|
(61,236)
|
|
|
|
(53,427)
|
|
|
Net loans
|
6,175,927
|
|
|
|
6,105,969
|
|
|
|
5,512,368
|
|
|
Total earning
assets
|
8,224,393
|
131,122
|
6.34 %
|
|
8,080,949
|
127,946
|
6.29 %
|
|
7,444,557
|
106,804
|
5.70 %
|
|
|
|
|
|
|
|
|
|
|
|
|
Goodwill and other
intangible assets
|
407,864
|
|
|
|
410,719
|
|
|
|
387,055
|
|
|
Other assets
|
548,197
|
|
|
|
529,983
|
|
|
|
511,271
|
|
|
Total assets
|
$
9,180,454
|
|
|
|
$ 9,021,651
|
|
|
|
$ 8,342,883
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Equity
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
deposits:
|
|
|
|
|
|
|
|
|
|
|
|
Savings
accounts
|
$
892,465
|
$
222
|
0.10 %
|
|
$
905,713
|
$ 226
|
0.10 %
|
|
$ 1,095,713
|
$ 583
|
0.21 %
|
Governmental deposit
accounts
|
795,913
|
5,594
|
2.83 %
|
|
763,899
|
5,085
|
2.68 %
|
|
693,725
|
2,330
|
1.35 %
|
Interest-bearing demand
accounts
|
1,095,553
|
495
|
0.18 %
|
|
1,109,033
|
452
|
0.16 %
|
|
1,178,614
|
532
|
0.18 %
|
Money market deposit
accounts
|
850,375
|
5,419
|
2.56 %
|
|
784,759
|
4,888
|
2.51 %
|
|
679,123
|
2,006
|
1.18 %
|
Retail certificates of
deposit
|
1,743,238
|
18,423
|
4.25 %
|
|
1,582,426
|
15,900
|
4.04 %
|
|
825,155
|
4,209
|
2.05 %
|
Brokered deposits
(e)
|
482,310
|
5,506
|
4.59 %
|
|
568,996
|
6,753
|
4.77 %
|
|
480,640
|
4,744
|
3.96 %
|
Total interest-bearing
deposits
|
5,859,854
|
35,659
|
2.45 %
|
|
5,714,826
|
33,304
|
2.34 %
|
|
4,952,970
|
14,404
|
1.17 %
|
Short-term borrowings
(e)
|
407,273
|
4,978
|
4.90 %
|
|
388,830
|
4,184
|
4.31 %
|
|
493,561
|
5,314
|
4.32 %
|
Long-term
borrowings
|
234,961
|
3,520
|
5.98 %
|
|
230,274
|
3,466
|
6.01 %
|
|
132,091
|
1,847
|
5.56 %
|
Total borrowed
funds
|
642,234
|
8,498
|
5.30 %
|
|
619,104
|
7,650
|
4.94 %
|
|
625,652
|
7,161
|
4.58 %
|
Total interest-bearing
liabilities
|
6,502,088
|
44,157
|
2.73 %
|
|
6,333,930
|
40,954
|
2.60 %
|
|
5,578,622
|
21,565
|
1.55 %
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest-bearing
deposits
|
1,476,870
|
|
|
|
1,501,738
|
|
|
|
1,637,671
|
|
|
Other
liabilities
|
140,042
|
|
|
|
133,202
|
|
|
|
175,152
|
|
|
Total
liabilities
|
8,119,000
|
|
|
|
7,968,870
|
|
|
|
7,391,445
|
|
|
Stockholders'
equity
|
1,061,454
|
|
|
|
1,052,781
|
|
|
|
951,438
|
|
|
Total liabilities and
stockholders' equity
|
$
9,180,454
|
|
|
|
$ 9,021,651
|
|
|
|
$ 8,342,883
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income/spread (b)
|
|
$
86,965
|
3.61 %
|
|
|
$
86,992
|
3.69 %
|
|
|
$
85,239
|
4.15 %
|
Net interest margin
(b)
|
|
|
4.18 %
|
|
|
|
4.26 %
|
|
|
|
4.54 %
|
CONSOLIDATED AVERAGE
BALANCE SHEETS AND NET INTEREST INCOME (Unaudited) --
(Continued)
|
|
|
Six Months
Ended
|
|
June 30,
2024
|
|
June 30,
2023
|
(Dollars in
thousands)
|
Balance
|
Income/
Expense
|
Yield/
Cost
|
|
Balance
|
Income/
Expense
|
Yield/
Cost
|
Assets
|
|
|
|
|
|
|
|
Short-term
investments
|
$
160,238
|
$
4,424
|
5.55 %
|
|
$
47,008
|
$
1,062
|
4.55 %
|
Investment securities
(a)(b)
|
1,851,485
|
31,378
|
3.39 %
|
|
1,831,335
|
26,547
|
2.90 %
|
Loans
(b)(c):
|
|
|
|
|
|
|
|
Construction
|
334,196
|
12,998
|
7.69 %
|
|
300,270
|
10,454
|
6.92 %
|
Commercial real estate,
other
|
2,075,468
|
73,662
|
7.02 %
|
|
1,538,771
|
48,034
|
6.21 %
|
Commercial and
industrial
|
1,216,743
|
47,412
|
7.71 %
|
|
975,633
|
34,165
|
6.96 %
|
Premium
finance
|
235,459
|
10,310
|
8.66 %
|
|
151,244
|
4,809
|
6.32 %
|
Leases
|
414,817
|
24,049
|
11.47 %
|
|
350,845
|
19,919
|
11.29 %
|
Residential real estate
(d)
|
928,309
|
22,782
|
4.91 %
|
|
881,514
|
20,535
|
4.66 %
|
Home equity lines of
credit
|
221,053
|
8,909
|
8.10 %
|
|
184,337
|
6,622
|
7.24 %
|
Consumer,
indirect
|
656,324
|
18,950
|
5.81 %
|
|
646,045
|
15,173
|
4.74 %
|
Consumer,
direct
|
121,569
|
4,194
|
6.94 %
|
|
116,377
|
3,985
|
6.91 %
|
Total loans
|
6,203,938
|
223,266
|
7.14 %
|
|
5,145,036
|
163,696
|
6.35 %
|
Allowance for credit
losses
|
(62,990)
|
|
|
|
(53,052)
|
|
|
Net loans
|
6,140,948
|
|
|
|
5,091,984
|
|
|
Total earning
assets
|
8,152,671
|
259,068
|
6.32 %
|
|
6,970,327
|
191,305
|
5.49 %
|
|
|
|
|
|
|
|
|
Goodwill and other
intangible assets
|
409,292
|
|
|
|
356,470
|
|
|
Other assets
|
539,089
|
|
|
|
465,782
|
|
|
Total assets
|
$
9,101,052
|
|
|
|
$
7,792,579
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Equity
|
|
|
|
|
|
|
|
Interest-bearing
deposits:
|
|
|
|
|
|
|
|
Savings
accounts
|
$
899,089
|
$
448
|
0.10 %
|
|
$
1,071,174
|
$
719
|
0.14 %
|
Governmental deposit
accounts
|
779,906
|
10,679
|
2.75 %
|
|
666,683
|
3,396
|
1.03 %
|
Interest-bearing demand
accounts
|
1,102,293
|
947
|
0.17 %
|
|
1,142,648
|
712
|
0.13 %
|
Money market deposit
accounts
|
817,567
|
10,307
|
2.54 %
|
|
632,561
|
2,831
|
0.90 %
|
Retail certificates of
deposit
|
1,662,832
|
34,323
|
4.15 %
|
|
702,809
|
5,959
|
1.71 %
|
Brokered deposit
(e)
|
525,653
|
12,259
|
4.69 %
|
|
353,760
|
6,447
|
3.68 %
|
Total interest-bearing
deposits
|
5,787,340
|
68,963
|
2.40 %
|
|
4,569,635
|
20,064
|
0.89 %
|
Short-term borrowings
(e)
|
398,052
|
9,162
|
4.62 %
|
|
482,643
|
9,772
|
4.08 %
|
Long-term
borrowings
|
232,617
|
6,985
|
5.99 %
|
|
115,375
|
3,000
|
5.19 %
|
Total borrowed
funds
|
630,669
|
16,147
|
5.12 %
|
|
598,018
|
12,772
|
4.30 %
|
Total interest-bearing
liabilities
|
6,418,009
|
85,110
|
2.66 %
|
|
5,167,653
|
32,836
|
1.28 %
|
|
|
|
|
|
|
|
|
Non-interest-bearing
deposits
|
1,489,304
|
|
|
|
1,598,985
|
|
|
Other
liabilities
|
136,622
|
|
|
|
149,075
|
|
|
Total
liabilities
|
8,043,935
|
|
|
|
6,915,713
|
|
|
Stockholders'
equity
|
1,057,117
|
|
|
|
876,866
|
|
|
Total liabilities and
stockholders' equity
|
$
9,101,052
|
|
|
|
$
7,792,579
|
|
|
|
|
|
|
|
|
|
|
Net interest
income/spread (b)
|
|
$ 173,958
|
3.66 %
|
|
|
$
158,469
|
4.21 %
|
Net interest margin
(b)
|
|
|
4.22 %
|
|
|
|
4.54 %
|
|
|
(a)
|
Average balances are
based on carrying value.
|
(b)
|
Interest income and
yields are presented on a fully tax-equivalent basis, using a 21%
statutory federal corporate income tax rate.
|
(c)
|
Average balances
include nonaccrual and impaired loans. Interest income includes
interest earned and received on nonaccrual loans prior to the loans
being placed on nonaccrual status. Loan fees included in interest
income were immaterial for all periods presented.
|
(d)
|
Loans held for sale are
included in the average loan balance listed. Related interest
income on loans originated for sale prior to the loan being sold is
included in loan interest income.
|
(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
|
|
Six Months
Ended
|
|
June
30,
|
|
March
31,
|
|
June
30,
|
|
June
30,
|
(Dollars in
thousands)
|
2024
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
|
|
|
|
|
|
|
|
|
Core non-interest
expense:
|
|
|
|
|
|
|
|
|
|
Total non-interest
expense
|
$
68,758
|
|
$
68,465
|
|
$
70,623
|
|
$
137,223
|
|
$
127,102
|
Less:
acquisition-related expenses
|
—
|
|
(84)
|
|
10,709
|
|
(84)
|
|
11,260
|
Add: COVID -19 Employee
Retention Credit
|
—
|
|
—
|
|
548
|
|
—
|
|
548
|
Core non-interest
expense
|
$
68,758
|
|
$
68,549
|
|
$
60,462
|
|
$
137,307
|
|
$
116,390
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June
30,
|
|
March
31,
|
|
June
30,
|
|
June
30,
|
(Dollars in
thousands)
|
2024
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
|
|
|
|
|
|
|
|
|
Efficiency
ratio:
|
|
|
|
|
|
|
|
|
|
Total non-interest
expense
|
$
68,758
|
|
$
68,465
|
|
$
70,623
|
|
$ 137,223
|
|
$ 127,102
|
Less: amortization of
other intangible assets
|
2,787
|
|
2,788
|
|
2,800
|
|
5,575
|
|
4,671
|
Adjusted total
non-interest expense
|
65,971
|
|
65,677
|
|
67,823
|
|
131,648
|
|
122,431
|
|
|
|
|
|
|
|
|
|
|
Total non-interest
income
|
23,704
|
|
25,779
|
|
21,015
|
|
49,483
|
|
40,075
|
Less: net loss on
investment securities
|
(353)
|
|
(1)
|
|
(166)
|
|
(354)
|
|
(2,101)
|
Less: net loss on asset
disposals and other transactions
|
(428)
|
|
(341)
|
|
(1,665)
|
|
(769)
|
|
(1,911)
|
Total non-interest
income, excluding net gains and losses
|
24,485
|
|
26,121
|
|
22,846
|
|
50,606
|
|
44,087
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
86,613
|
|
86,640
|
|
84,853
|
|
173,253
|
|
157,731
|
Add: fully
tax-equivalent adjustment (a)
|
352
|
|
352
|
|
386
|
|
705
|
|
738
|
Net interest income on
a fully tax-equivalent basis
|
86,965
|
|
86,992
|
|
85,239
|
|
173,958
|
|
158,469
|
|
|
|
|
|
|
|
|
|
|
Adjusted
revenue
|
$
111,450
|
|
$
113,113
|
|
$
108,085
|
|
$ 224,564
|
|
$ 202,556
|
|
|
|
|
|
|
|
|
|
|
Efficiency
ratio
|
59.19 %
|
|
58.06 %
|
|
62.75 %
|
|
58.62 %
|
|
60.44 %
|
|
|
|
|
|
|
|
|
|
|
Efficiency ratio
adjusted for non-core items:
|
|
|
|
|
|
|
|
|
Core non-interest
expense
|
$
68,758
|
|
$
68,549
|
|
$
60,462
|
|
$ 137,307
|
|
$ 116,390
|
Less: amortization of
other intangible assets
|
2,787
|
|
2,788
|
|
2,800
|
|
5,575
|
|
4,671
|
Adjusted core
non-interest expense
|
65,971
|
|
65,761
|
|
57,662
|
|
131,732
|
|
111,719
|
|
|
|
|
|
|
|
|
|
|
Adjusted
revenue
|
$
111,450
|
|
$
113,113
|
|
$
108,085
|
|
$ 224,564
|
|
$ 202,556
|
|
|
|
|
|
|
|
|
|
|
Efficiency ratio
adjusted for non-core items
|
59.19 %
|
|
58.14 %
|
|
53.35 %
|
|
58.66 %
|
|
55.15 %
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
Tax effect is
calculated using a 21% statutory federal corporate income tax
rate.
|
NON-US GAAP
FINANCIAL MEASURES (Unaudited) -- (Continued)
|
|
|
At or For the Three
Months Ended
|
|
June
30,
|
|
March
31,
|
|
December
31,
|
|
September
30,
|
|
June
30,
|
(Dollars in
thousands, except per share data)
|
2024
|
|
2024
|
|
2023
|
|
2023
|
|
2023
|
|
|
|
|
|
|
|
|
|
|
Tangible
equity:
|
|
|
|
|
|
|
|
|
|
Total stockholders'
equity
|
$ 1,077,833
|
|
$ 1,062,002
|
|
$ 1,053,534
|
|
$
993,219
|
|
$
998,907
|
Less: goodwill and
other intangible assets
|
406,417
|
|
409,285
|
|
412,172
|
|
408,494
|
|
413,172
|
Tangible
equity
|
$
671,416
|
|
$
652,717
|
|
$
641,362
|
|
$
584,725
|
|
$
585,735
|
|
|
|
|
|
|
|
|
|
|
Tangible
assets:
|
|
|
|
|
|
|
|
|
|
Total assets
|
$ 9,226,461
|
|
$ 9,270,774
|
|
$ 9,157,382
|
|
$ 8,942,534
|
|
$ 8,786,635
|
Less: goodwill and
other intangible assets
|
406,417
|
|
409,285
|
|
412,172
|
|
408,494
|
|
413,172
|
Tangible
assets
|
$ 8,820,044
|
|
$ 8,861,489
|
|
$ 8,745,210
|
|
$ 8,534,040
|
|
$ 8,373,463
|
|
|
|
|
|
|
|
|
|
|
Tangible book value
per common share:
|
|
|
|
|
|
|
|
|
|
Tangible
equity
|
$
671,416
|
|
$
652,717
|
|
$
641,362
|
|
$
584,725
|
|
$
585,735
|
Common shares
outstanding
|
35,498,977
|
|
35,486,234
|
|
35,314,745
|
|
35,395,990
|
|
35,374,916
|
|
|
|
|
|
|
|
|
|
|
Tangible book value per
common share
|
$
18.91
|
|
$
18.39
|
|
$
18.16
|
|
$
16.52
|
|
$
16.56
|
|
|
|
|
|
|
|
|
|
|
Tangible equity to
tangible assets ratio:
|
|
|
|
|
Tangible
equity
|
$
671,416
|
|
$
652,717
|
|
$
641,362
|
|
$
584,725
|
|
$
585,735
|
Tangible
assets
|
$ 8,820,044
|
|
$ 8,861,489
|
|
$ 8,745,210
|
|
$ 8,534,040
|
|
$ 8,373,463
|
|
|
|
|
|
|
|
|
|
|
Tangible equity to
tangible assets
|
7.61 %
|
|
7.37 %
|
|
7.33 %
|
|
6.85 %
|
|
7.00 %
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June
30,
|
|
March
31,
|
|
June
30,
|
|
June
30,
|
(Dollars in
thousands)
|
2024
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
|
|
|
|
|
|
|
|
|
Pre-provision net
revenue:
|
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
$
35,876
|
|
$
37,852
|
|
$
27,262
|
|
$
73,728
|
|
$
60,868
|
Add: provision for
credit losses
|
5,683
|
|
6,102
|
|
7,983
|
|
11,785
|
|
9,836
|
Add: loss on
OREO
|
—
|
|
—
|
|
1,612
|
|
—
|
|
1,622
|
Add: loss on investment
securities
|
353
|
|
1
|
|
166
|
|
354
|
|
2,101
|
Add: loss on other
assets
|
397
|
|
309
|
|
45
|
|
706
|
|
274
|
Add: loss on other
transactions
|
31
|
|
32
|
|
8
|
|
63
|
|
15
|
Pre-provision net
revenue
|
$
42,340
|
|
$
44,296
|
|
$
37,076
|
|
$
86,636
|
|
$
74,716
|
|
|
|
|
|
|
|
|
|
|
Total average
assets
|
9,180,454
|
|
9,021,651
|
|
8,342,883
|
|
9,101,052
|
|
7,792,579
|
|
|
|
|
|
|
|
|
|
|
Pre-provision net
revenue to total average assets (annualized)
|
1.85 %
|
|
1.97 %
|
|
1.78 %
|
|
1.91 %
|
|
1.93 %
|
Weighted-average common
shares outstanding – diluted
|
35,117,648
|
|
35,051,810
|
|
32,649,976
|
|
35,071,550
|
|
30,314,504
|
Pre-provision net
revenue per common share – diluted
|
$
1.21
|
|
$
1.26
|
|
$
1.13
|
|
$
2.45
|
|
$
2.45
|
NON-US GAAP
FINANCIAL MEASURES (Unaudited) -- (Continued)
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June
30,
|
|
March
31,
|
|
June
30,
|
|
June
30,
|
(Dollars in
thousands)
|
2024
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
|
|
|
|
|
|
|
|
|
Annualized net
income adjusted for non-core items:
|
|
|
|
|
Net income
|
$
29,007
|
|
$
29,584
|
|
$
21,096
|
|
$
58,591
|
|
$ 47,656
|
Add: net loss on
investment securities
|
353
|
|
1
|
|
166
|
|
354
|
|
2,101
|
Less: tax effect of net
loss on investment securities (a)
|
74
|
|
—
|
|
35
|
|
74
|
|
441
|
Add: net loss on asset
disposals and other transactions
|
428
|
|
341
|
|
1,665
|
|
769
|
|
1,911
|
Less: tax effect of net
loss on asset disposals and other transactions (a)
|
90
|
|
72
|
|
349
|
|
161
|
|
401
|
Add:
acquisition-related expenses
|
—
|
|
(84)
|
|
10,709
|
|
(84)
|
|
11,260
|
Less: tax effect of
acquisition-related expenses (a)
|
—
|
|
(18)
|
|
2,249
|
|
(18)
|
|
2,365
|
Less: COVID -19
Employee Retention Credit
|
—
|
|
—
|
|
548
|
|
—
|
|
548
|
Add: tax effect of
COVID -19 Employee Retention Credit (a)
|
—
|
|
—
|
|
115
|
|
—
|
|
115
|
Net income adjusted for
non-core items
|
$
29,624
|
|
$
29,788
|
|
$
30,570
|
|
$
59,413
|
|
$ 59,288
|
|
|
|
|
|
|
|
|
|
|
Days in the
period
|
91
|
|
91
|
|
91
|
|
182
|
|
181
|
Days in the
year
|
366
|
|
366
|
|
365
|
|
366
|
|
365
|
Annualized net
income
|
$
116,666
|
|
$
118,986
|
|
$
84,616
|
|
$
117,826
|
|
$ 96,102
|
Annualized net income
adjusted for non-core items
|
$
119,147
|
|
$
119,807
|
|
$ 122,616
|
|
$
119,479
|
|
$
119,559
|
Return on average
assets:
|
|
|
|
|
|
|
|
|
|
Annualized net
income
|
$
116,666
|
|
$
118,986
|
|
$
84,616
|
|
$
117,826
|
|
$ 96,102
|
Total average
assets
|
$
9,180,454
|
|
$
9,021,651
|
|
$
8,342,883
|
|
$
9,101,052
|
|
$
7,792,579
|
Return on average
assets
|
1.27 %
|
|
1.32 %
|
|
1.01 %
|
|
1.29 %
|
|
1.23 %
|
Return on average
assets adjusted for non-core items:
|
|
|
|
|
Annualized net income
adjusted for non-core items
|
$
119,147
|
|
$
119,807
|
|
$ 122,616
|
|
$
119,479
|
|
$
119,559
|
Total average
assets
|
$
9,180,454
|
|
$
9,021,651
|
|
$
8,342,883
|
|
$
9,101,052
|
|
$
7,792,579
|
Return on average
assets adjusted for non-core items
|
1.30 %
|
|
1.33 %
|
|
1.47 %
|
|
1.31 %
|
|
1.53 %
|
|
|
(a)
|
Tax effect is
calculated using a 21% statutory federal corporate income tax
rate.
|
NON-US GAAP
FINANCIAL MEASURES (Unaudited) -- (Continued)
|
|
|
For the Three Months
Ended
|
|
Six Months
Ended
|
|
June
30,
|
|
March
31,
|
|
June
30,
|
|
June
30,
|
(Dollars in
thousands)
|
2024
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
|
|
|
|
|
|
|
|
|
Annualized net
income excluding amortization of other intangible
assets:
|
|
|
|
|
Net income
|
$
29,007
|
|
$
29,584
|
|
$
21,096
|
|
$
58,591
|
|
$
47,656
|
Add: amortization of
other intangible assets
|
2,787
|
|
2,788
|
|
2,800
|
|
5,575
|
|
4,671
|
Less: tax effect of
amortization of other intangible assets (a)
|
585
|
|
585
|
|
588
|
|
1,171
|
|
981
|
Net income excluding
amortization of other intangible assets
|
$
31,209
|
|
$
31,787
|
|
$
23,308
|
|
$
62,995
|
|
$
51,346
|
|
|
|
|
|
|
|
|
|
|
Days in the
period
|
91
|
|
91
|
|
91
|
|
182
|
|
181
|
Days in the
year
|
366
|
|
366
|
|
365
|
|
366
|
|
365
|
Annualized net
income
|
$
116,666
|
|
$ 118,986
|
|
$
84,616
|
|
$ 117,826
|
|
$
96,102
|
Annualized net income
excluding amortization of other intangible assets
|
$
125,522
|
|
$ 127,847
|
|
$
93,488
|
|
$ 126,682
|
|
$
103,543
|
|
|
|
|
|
|
|
|
|
|
Average tangible
equity:
|
|
|
|
|
Total average
stockholders' equity
|
$
1,061,454
|
|
$
1,052,781
|
|
$ 951,438
|
|
$
1,057,117
|
|
$
876,866
|
Less: average goodwill
and other intangible assets
|
407,864
|
|
410,719
|
|
387,055
|
|
409,292
|
|
356,470
|
Average tangible
equity
|
$
653,590
|
|
$ 642,062
|
|
$ 564,383
|
|
$ 647,825
|
|
$
520,396
|
|
|
|
|
|
|
|
|
|
|
Return on average
stockholders' equity ratio:
|
|
|
|
|
|
Annualized net
income
|
$
116,666
|
|
$ 118,986
|
|
$
84,616
|
|
$ 117,826
|
|
$
96,102
|
Average stockholders'
equity
|
$
1,061,454
|
|
$
1,052,781
|
|
$ 951,438
|
|
$
1,057,117
|
|
$
876,866
|
|
|
|
|
|
|
|
|
|
|
Return on average
stockholders' equity
|
10.99 %
|
|
11.30 %
|
|
8.89 %
|
|
11.15 %
|
|
10.96 %
|
|
|
|
|
|
|
Return on average
tangible equity ratio:
|
|
|
|
|
|
Annualized net income
excluding amortization of other intangible assets
|
$
125,522
|
|
$ 127,847
|
|
$
93,488
|
|
$ 126,682
|
|
$
103,543
|
Average tangible
equity
|
$
653,590
|
|
$ 642,062
|
|
$ 564,383
|
|
$ 647,825
|
|
$
520,396
|
|
|
|
|
|
|
|
|
|
|
Return on average
tangible equity
|
19.21 %
|
|
19.91 %
|
|
16.56 %
|
|
19.55 %
|
|
19.90 %
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
Tax effect is
calculated using a 21% statutory federal corporate income tax
rate.
|
View original
content:https://www.prnewswire.com/news-releases/peoples-bancorp-inc-announces-second-quarter-2024-results-302203123.html
SOURCE Peoples Bancorp Inc.