MARIETTA, Ohio, April 23,
2024 /PRNewswire/ -- Peoples Bancorp Inc.
("Peoples") (NASDAQ: PEBO) today announced results for the quarter
ended March 31, 2024. Net income
totaled $29.6 million for the first
quarter of 2024, representing earnings per diluted common share of
$0.84. In comparison, Peoples
reported net income of $33.8 million,
representing earnings per diluted common share of $0.96, for the fourth quarter of 2023 and net
income of $26.6 million representing
earnings per diluted common share of $0.94, for the first quarter of 2023.
"Our first quarter performance built upon our foundation from
2023, as our diversified mix of revenue sources continued to be a
strength. We see most segments of our business thriving as the
demand for commercial and industrial loans and leasing remains
strong," said Tyler Wilcox,
President and Chief Executive Officer. "We increased our dividend
this morning, for the ninth consecutive year, and are focused on
shareholder return."
Statement of Operations Highlights:
- Net interest income for the first quarter of 2024
declined 2%, compared to the linked quarter, driven by lower
accretion income.
- Net interest margin decreased to 4.27% for the first quarter of
2024, compared to 4.44% for the linked quarter driven by lower
accretion income and excess cash retained during the quarter.
- Peoples recorded a provision for credit losses of
$6.1 million for the first quarter of
2024, compared to a provision for credit losses of $1.3 million for the fourth quarter of
2023.
- The provision for credit losses negatively impacted earnings
per diluted common share by $0.14 for
the first quarter of 2024 and $0.03
for the fourth quarter of 2023.
- Annualized net charge-offs were 0.22% of average total loans
and are returning to pre-pandemic levels.
- Total non-interest income, excluding net gains and
losses, decreased $0.2 million, or
1%, for the first quarter of 2024 compared to the linked
quarter.
- Total non-interest expense for the first quarter of 2024
increased $0.8 million, or 1%,
compared to the linked quarter.
- The increase in total non-interest expense compared to the
linked quarter was primarily attributable to an increase in
salaries and employee benefit costs due to anticipated annual
expenses that occur in the first quarter of each year.
- The efficiency ratio for the first quarter of 2024 was 58.0%,
compared to 56.0% for the linked quarter.
Balance Sheet Highlights:
- Period-end total loan and lease balances at March 31, 2024 increased $43.6 million, or 3% annualized, compared to at
December 31, 2023.
- The increase was driven by growth in (i) commercial real estate
loans, (ii) commercial and industrial loans, and (iii) premium
finance loans.
- Asset quality metrics remained stable during the first
quarter of 2024.
- Delinquency trends and the annualized net charge-off rate
improved compared to December 31,
2023.
- Criticized and classified loans both increased and were driven
by the downgrades of commercial and industrial relationships.
- Period-end total deposit balances at March 31, 2024 increased $174.3 million, or 2%, compared to at
December 31, 2023, primarily driven
by increases in retail certificate of deposit accounts.
- Total loan balances were 85% of total deposit balances at
March 31, 2024 and 86% at
December 31, 2023.
Completion of the Limestone Merger:
As of 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, $1.3 million, and $0.6
million in other non-interest expense, for the three months
ended March 31, 2024, December 31, 2023, and March 31, 2023, respectively.
Net Interest Income
Net interest income was
$86.6 million for the first quarter
of 2024, a decrease of $1.7 million,
or 2%, compared to the linked quarter. Net interest margin was
4.27% for the first quarter of 2024, compared to 4.44% for the
linked quarter. The decreases in net interest income and net
interest margin were primarily driven by a decrease in accretion
income, net of amortization, from our acquisitions. The linked
quarter was impacted by a true-up of $1.4
million to the preliminary Limestone-related accretion,
which added to net interest income for that quarter. The small
remaining decline in net interest margin, compared to the linked
quarter, was mostly due to excess cash on-hand during the quarter
for liquidity purposes.
Net interest income for the first quarter of 2024 increased
$13.8 million, or 19%, compared to
the first quarter of 2023. The increase in net interest income
compared to the first quarter of 2023 was driven by increases in
market interest rates, the Limestone Merger, and organic growth.
Net interest margin decreased 26 basis points when compared to the
first quarter of 2023, driven primarily by an increase in interest
expense on deposits.
Accretion income, net of amortization expense, from acquisitions
was $6.6 million for the first
quarter of 2024, $9.0 million for the
fourth quarter of 2023 and $2.0
million for the first quarter of 2023, which added 32 basis
points, 45 basis points and 13 basis points, respectively, to net
interest margin. The decrease in accretion income for the first
quarter of 2024 when compared to the linked quarter was primarily
driven by a fourth quarter 2023 true-up to the preliminary
Limestone-related accretion. The increase in accretion income for
the current quarter compared to the first quarter of 2023 was a
result of the accretion from the Limestone Merger.
Provision for Credit Losses:
The provision for credit
losses was $6.1 million for the
first quarter of 2024, compared to $1.3 million for the linked quarter and
$1.9 million for the first
quarter of 2023. The increase in the provision for credit losses
for the first quarter of 2024 compared to the linked quarter was
primarily due to (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 (iii)
loan growth. The provision for credit losses for the fourth quarter
of 2023 was largely attributable to higher net charge-offs, offset
by an improvement of macro-economic conditions and the release of
reserves on individually analyzed loans. The increase in the
provision for credit losses for the first quarter of 2024 compared
to the first quarter of 2023, was driven by loan growth and an
increase in charge-offs, partially offset by a release of reserves
on individually analyzed loans..
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 $0.14 for the
first quarter of 2024, $0.03 for the
fourth quarter of 2023, and $0.05 for
the first quarter of 2023.
Net charge-offs for the first quarter of 2024 were $3.3 million, or 0.22% annualized, of average
total loans, compared to $3.5
million, or 0.23% annualized, of average total loans, for
the linked quarter and $1.5 million,
or 0.13% annualized, of average total loans, for the first quarter
of 2023. For additional information on credit trends and the
allowance for credit losses, see the "Asset Quality" section
below.
Net Gains and Losses:
Net gains and losses include
gains and losses on investment securities, asset disposals and
other transactions, which are included in total non-interest income
on the Consolidated Statements of Income. The net loss for the
first quarter of 2024 was $0.3 million, compared to a net loss of
$2.2 million for each of the
linked quarter and the first quarter of 2023. The net loss for the
first quarter of 2024 was due to $0.3
million of net losses on repossessed assets. The net loss
for the linked quarter was primarily due to the sales of
$36.5 million of lower yielding
available-for-sale investment securities for a pre-tax loss of
$1.7 million. The first quarter
of 2023 net loss was due to $2.0
million of pre-tax net losses on the sale of
available-for-sale investment securities.
Total Non-interest Income, Excluding Net Gains and
Losses:
Total non-interest income, excluding net gains and
losses, for the first quarter of 2024 decreased $0.2 million compared to the linked quarter. The
decrease in non-interest income, excluding net gains and losses,
was primarily impacted by decreases of $1.6
million and $0.8 million in
lease income and electronic banking income, respectively. The
decrease in lease income was due to a large lease buyout in the
fourth quarter of 2023, while the decrease in electronic banking
income was due to a decline in customer activity. Partially
offsetting the decreases was a $2.2
million increase in insurance income due to seasonal
performance-based commissions being paid in the first quarter of
each year. Total non-interest income, excluding net gains and
losses, for the first quarter of 2024 was 23% of total revenue
(defined as net interest income plus total non-interest income
excluding net gains and losses).
Compared to the first quarter of 2023, total non-interest
income, excluding net gains and losses, increased $4.9 million, primarily due to (i) a $1.1 million increase in insurance income, (ii) a
$1.0 million increase in other
non-interest income, (iii) a $0.8
million increase in bank owned life insurance income, (iv) a
$0.7 million increase in deposit
account service charges, and (v) a $0.6
million increase in electronic
banking income. Insurance income increased due to higher
contingency income, new business, and market increases for
premiums. Bank owned life insurance increased due to a $0.5 million death benefit related to the cash
surrender value of the underlying policy in the first quarter of
2024 and additional income from policies acquired in the Limestone
Merger. The other increases for the first quarter of 2024, when
compared to the first quarter of 2023, were primarily due to the
additional customers brought in from the Limestone Merger.
Total Non-interest Expense:
Total non-interest
expenses for the first quarter ended March 31, 2024, were
impacted by anticipated annual expenses that occur in the first
quarter of each year including annual merit increases, stock-based
compensation expenses attributable to retirement-eligible
employees, and health savings account ("HSA") contributions. Total
non-interest expense for the prior periods were impacted by the
Limestone Merger and acquisition-related non-interest expenses.
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
|
|
March
31,
|
|
December
31,
|
|
March
31,
|
|
2024
|
|
2023
|
|
2023
|
(Dollars in
thousands)
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
Non-interest
expense:
|
|
|
|
|
|
Salaries and employee
benefit costs
|
$
38,893
|
|
$
37,370
|
|
$
32,028
|
Data processing and
software expense
|
5,769
|
|
6,029
|
|
4,562
|
Net occupancy and
equipment expense
|
6,283
|
|
5,532
|
|
4,955
|
Professional
fees
|
2,967
|
|
3,266
|
|
2,881
|
Amortization of other
intangible assets
|
2,788
|
|
3,271
|
|
1,871
|
Electronic banking
expense
|
1,781
|
|
1,991
|
|
1,491
|
Marketing
expense
|
1,056
|
|
1,463
|
|
930
|
FDIC insurance
premiums
|
1,186
|
|
1,260
|
|
801
|
Franchise tax
expense
|
881
|
|
862
|
|
1,034
|
Communication
expense
|
799
|
|
745
|
|
613
|
Other loan
expenses
|
1,076
|
|
726
|
|
739
|
Other non-interest
expense
|
4,986
|
|
5,174
|
|
4,574
|
Total
non-interest expense
|
68,465
|
|
67,689
|
|
56,479
|
Acquisition-related
non-interest expense:
|
|
|
|
|
|
Salaries and employee
benefit costs
|
16
|
|
119
|
|
21
|
Data processing and
software expense
|
(18)
|
|
560
|
|
—
|
Net occupancy and
equipment expense
|
—
|
|
78
|
|
9
|
Professional
fees
|
(38)
|
|
530
|
|
291
|
Electronic banking
expense
|
(100)
|
|
—
|
|
—
|
Marketing
expense
|
10
|
|
20
|
|
10
|
Other loan
expenses
|
—
|
|
1
|
|
—
|
Other non-interest
expense
|
46
|
|
(32)
|
|
220
|
Total
acquisition-related non-interest expense
|
(84)
|
|
1,276
|
|
551
|
Non-interest expense
excluding acquisition-related expense:
|
|
|
|
|
|
Salaries and employee
benefit costs
|
38,877
|
|
37,251
|
|
32,007
|
Data processing and
software expense
|
5,787
|
|
5,469
|
|
4,562
|
Net occupancy and
equipment expense
|
6,283
|
|
5,454
|
|
4,946
|
Professional
fees
|
3,005
|
|
2,736
|
|
2,590
|
Amortization of other
intangible assets
|
2,788
|
|
3,271
|
|
1,871
|
Electronic banking
expense
|
1,881
|
|
1,991
|
|
1,491
|
Marketing
expense
|
1,046
|
|
1,443
|
|
920
|
FDIC insurance
premiums
|
1,186
|
|
1,260
|
|
801
|
Franchise tax
expense
|
881
|
|
862
|
|
1,034
|
Communication
expense
|
799
|
|
745
|
|
613
|
Other loan
expenses
|
1,076
|
|
725
|
|
739
|
Other non-interest
expense
|
4,940
|
|
5,206
|
|
4,354
|
Total non-interest
expense excluding acquisition-related expense
|
$
68,549
|
|
$
66,413
|
|
$
55,928
|
|
|
|
|
|
|
Total non-interest expense increased $0.8
million, or 1%, for the first quarter of 2024, compared to
the linked quarter. Excluding acquisition-related expense, total
non-interest expense increased $2.1
million, or 3%, primarily due to an increase of $1.6 million in salaries and employee benefit
costs. The increase in salaries and employee benefits was due to
anticipated annual expenses that occur in the first quarter of each
year including annual merit increases, stock-based compensation
expenses attributable to retirement-eligible employees and health
savings account ("HSA") contributions.
Compared to the first quarter of 2023, total non-interest
expense increased $12.0 million, or
21%. Excluding acquisition-related expenses, non-interest expenses
increased $12.6 million, or 23%,
primarily due to increases of $6.9
million in salaries and employee benefits costs due to
additional employees added in the Limestone Merger and $1.3 million and $1.2
million in net occupancy and equipment expense and data
processing and software expense, respectively, due to the recent
growth, including through acquisitions.
The efficiency ratio for the first quarter of 2024 was 58.0%,
compared to 56.0% for the linked quarter and 57.8% for the first
quarter of 2023. The efficiency ratio increased compared to the
linked quarter mainly as the result of an increase of interest
expense on deposits. The efficiency ratio compared to the prior
year quarter was relatively flat. The efficiency ratio, adjusted
for non-core items, was 58.1% for the first quarter of 2024,
compared to 54.9% for the linked quarter, and 57.2% for the first
quarter 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 $8.3
million with an effective tax rate of 21.8% for the first
quarter of 2024, compared to income tax expense of $9.7 million with an effective tax rate of 22.3%
for the linked quarter and income tax expense of $7.0 million with an effective tax rate of 21.0%
for the first quarter of 2023. The decrease in income tax expense
when compared to the fourth quarter of 2023 was primarily due to
lower 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 March 31,
2024 increased $68.1 million when
compared to at December 31, 2023, and increased $67.0 million when compared to at March 31,
2023. The increase in the balance when compared to at
December 31, 2023, was primarily driven by purchases
of higher yielding government sponsored agency securities,
which were used to collateralize certain government deposits. The
increase in the balance when compared to at March 31, 2023,
was due to available-for-sale securities acquired in the Limestone
Merger, partially offset by the sale of lower-yielding
available-for-sale securities. The balances of unrealized losses,
net of tax, on available-for-sale investment securities recognized
within accumulated other comprehensive loss were $111.8 million, $104.2
million, and $112.7 million at
March 31, 2024, at December 31, 2023, and at
March 31, 2023, respectively.
The held-to-maturity investment securities balance at
March 31, 2024 decreased $4.2
million and $14.6 million when
compared to at December 31, 2023, and at March 31, 2023,
respectively. The decreases when compared to prior periods were
driven by principal payment reductions. The balances of net
unrealized losses on held-to-maturity investment securities were
$77.4 million, $71.6 million, and $69.9
million at March 31, 2024, at December 31, 2023,
and at March 31, 2023, respectively.
The effective duration of the investment portfolio as of
March 31, 2024 was estimated to be 5.41 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 March 31, 2024, Peoples had
liquid and liquefiable assets totaling $632.6 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 March 31, 2024, Peoples had a
borrowing capacity of $798.4 million
available through the Federal Home Loan Bank ("FHLB"), the Federal
Reserve Bank ("FRB"), and federal funds. Additionally at
March 31, 2024, Peoples had other contingent sources of
liquidity totaling $2.4 billion.
Loans and Leases:
The period-end total loan and lease
balances at March 31, 2024 increased $43.6 million, or 3% annualized, compared to at
December 31, 2023. The increase in the period-end total loan
and lease balances was primarily driven by increases of (i)
$46.8 million in other commercial
real estate loans, (ii) $35.8 million
in premium finance loans, and (iii) $29.6
million in commercial and industrial loans, partially offset
by reductions of (i) $49.3 million in
construction loans, (ii) $16.2
million in indirect consumer loans, and (iii) $15.2 million in direct consumer loans.
The period-end total loan and lease balances at March 31,
2024 increased $1.4 billion compared
to at March 31, 2023, primarily due to the Limestone Merger.
Excluding the loans acquired in the Limestone Merger, the
period-end loan and lease balance increased $499.3 million, or 10%, driven by increases of
$198.1 million, $100.6 million, $80.7
million, $68.1 million,
$37.3 million, and $23.5 million in other commercial real estate
loans, commercial and industrial loans, premium finance loans,
leases, construction loans, and home equity lines of credit,
respectively.
Quarterly average total loan balances increased $73.0 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) $61.4 million in other commercial real estate
loans (ii) $58.3 million in
commercial and industrial loans, and (iii) $20.5 million in premium finance loans, partially
offset by reductions of $47.7 million
in construction loans, $15.8 million
in indirect consumer loans and $13.2 million in consumer direct loans.
Compared to the first quarter of 2023, quarterly average loan
balances in the current quarter increased $1.5 billion, or 31%. The increase was driven by
loans acquired in the Limestone Merger, and to lesser extents,
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 first quarter of 2024. Delinquency
trends remained stable as loans considered current comprised 98.7%,
98.6%, and 99.0% of the loan portfolio at March 31, 2024, December
31, 2023, and March 31, 2023,
respectively. Total nonperforming assets at March 31, 2024
increased $6.9 million, or 18%,
compared to at December 31, 2023, and increased $3.5 million, or 8%, compared to at
March 31, 2023. The increase in nonperforming assets compared
to the linked quarter was primarily due to an increase in the
balance of nonaccrual loans. The increase in nonperforming assets
compared to at March 31, 2023, was impacted by the increase of
loans past due and accruing. Nonperforming assets as a percent of
total loans and OREO was 0.74% at March 31, 2024, compared to
0.64% at December 31, 2023, and 0.90% at March 31,
2023.
Criticized loans, which are those categorized as special
mention, substandard or doubtful, increased $21.3 million, or 9%, compared to at December 31, 2023, and increased $57.8 million, or 29%, compared to at
March 31, 2023. As a percent of total
loans, criticized loans were 4.14% at March
31, 2024, compared to 3.82% at December 31, 2023, and 4.18% at March 31, 2023. The increase in the amount of
criticized loans compared to at December 31,
2023 was primarily driven by downgrades of commercial and
industrial loans. Compared to March 31,
2023, the increase in the amount of criticized loans was
primarily driven by the acquisition of criticized loans in the
Limestone Merger.
Classified loans, which are those categorized as substandard or
doubtful, increased $27.5 million, or
23%, compared to at December 31, 2023, and increased
$54.4 million, or 58%, compared to at
March 31, 2023. As a percent of total loans, classified loans
were 2.38% at March 31, 2024, compared to 1.95% at
December 31, 2023, and 1.96% at March 31, 2023. The
increase in classified loans compared to at December 31, 2023,
was driven by two downgrades in the commercial portfolio. The
increase in classified loans when compared to at March 31,
2023, was primarily driven by the acquisition of classified loans
in the Limestone Merger.
Annualized net charge-offs were 0.22% of average total loans for
the first quarter of 2024, compared to 0.23% for the linked
quarter, and 0.13% for the first quarter of 2023. The decrease
relative to the linked quarter was driven by a decrease in
charge-offs on leases and commercial and industrial loans,
partially offset by a decrease in recoveries on other commercial
real estate loans. The increase in net charge-offs during the first
quarter of 2024 versus the prior year first quarter was primarily
attributable to an increase in charge-offs on (i) leases, (ii)
indirect consumer loans, (iii) commercial industrial loans, and
(iv) other commercial real estate loans, partially offset by an
increase in recoveries on leases during the first quarter of
2024.
At March 31, 2024, the allowance for credit losses
increased $2.8 million when compared
to at December 31, 2023, and increased $11.5 million when compared to at March 31,
2023. The increase in the allowance for credit losses at
March 31, 2024 when compared to
December 31, 2023 was primarily due
to (i) a deterioration of macro-economic conditions used within the
CECL model, (ii) an increase of reserves on individually analyzed
loans and (iii) loan growth. The increase in the allowance balance
at March 31, 2024 when compared to
March 31, 2023 was driven by (i) the
provision for the loans acquired in the Limestone Merger, (ii) loan
growth and (iii) an increase in charge-offs, partially offset by a
release of reserves on individually analyzed loans. The ratio of
the allowance for credit losses as a percent of total loans was
1.05% at March 31, 2024, compared to 1.01% at
December 31, 2023, and 1.12% at March 31, 2023.
Deposits:
As of March 31, 2024, period-end total
deposits increased $174.3 million, or
2%, compared to at December 31, 2023. The increase was
primarily driven by increases of $237.0
million in retail certificates of deposit, $98.5 million in governmental deposit accounts,
and $84.5 million in money market
deposit accounts, partially offset by reductions of (i)
$99.3 million in non-interest bearing
deposit accounts, (ii) $92.0 million
in brokered certificates of deposit, (iii) $36.6 million in interest-bearing demand deposit
accounts, and (iv) $17.8
million in savings accounts. The increase in retail
certificates of deposits was due to current specials being offered,
while the increase in governmental deposit accounts was due to the
seasonality of the balances, which are typically higher in the
first quarter.
Compared to March 31, 2023, period-end deposit balances
increased $1.5 billion, or 27%. The
increase was primarily driven by deposits acquired in the Limestone
Merger. Excluding Limestone deposit balances, total deposits at
March 31, 2024 increased $784.8
million, or 14%, compared to at March
31, 2023, primarily due to increases of $956.9 million in retail certificates of deposit,
$210.3 million in brokered
certificates of deposit, and $191.2
million in money market deposit accounts, partially offset
by decreases of $270.9 million,
$191.8 million, and $158.4 million in non-interest bearing deposits,
savings accounts, and interest-bearing demand deposit accounts,
respectively.
The percentages of retail deposit balances and commercial
deposit balances of the total deposit balance at March 31,
2024 were 76% and 24%, respectively, compared to 80% and 20%,
respectively, at December 31, 2023, and 75% and 25%,
respectively, at March 31, 2023.
Uninsured deposits were 32%, 31%, and 32% of total deposits at
March 31, 2024, at December 31, 2023, and at
March 31, 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 $865.6 million, or 42%, $788.7 million, or 40%, and $698.9 million, or 40% of the uninsured deposit
balances at March 31, 2024, at December 31, 2023, and at
March 31, 2023, respectively.
Average deposit balances during the first quarter of 2024
increased $147.9 million when
compared to the linked quarter, and increased $1.5 billion, or 26%, when compared to the first
quarter of 2023. The increase in average deposit balances
compared to the linked quarter was driven by increases of
$246.0 million in retail certificates
of deposits, and $33.3 million in
money market deposit accounts, partially offset by decreases of
$36.8 million in interest-bearing
demand accounts and $33.8 million in
savings accounts. Total demand deposit accounts comprised 35%, 38%
and 46% of total deposits at March 31, 2024, at
December 31, 2023 and at March 31, 2023,
respectively.
Stockholders' Equity:
Total stockholders' equity at
March 31, 2024 increased $8.5
million, or 1%, compared to at December 31, 2023. This
change was primarily driven by net income of $29.6 million during the quarter, partially
offset by dividends paid of $13.7
million and a $7.4 million increase in accumulated other
comprehensive loss. The change in accumulated other comprehensive
loss was the result of the changes in the market value of
available-for-sale investment securities during the period.
Total stockholders' equity at March 31, 2024 increased
$242.5 million, or 30%, compared to
at March 31, 2023, which was due to (i) the issuance of 6.8
million common shares (valued at $177.9
million) in the Limestone Merger, (ii) net income of
$116.4 million in the last twelve
months, and (iii) a decrease in other comprehensive loss of
$2.0 million, partially offset by
dividends paid of $55.1 million and
share repurchases of $6.0
million.
At March 31, 2024, the tier 1 risk-based capital ratio was
12.50%, compared to 12.37% at December 31, 2023, and 12.49% at
March 31, 2023. The common equity tier 1 risk-based capital
ratio was 11.69% at March 31, 2024, compared to 11.56% at
December 31, 2023, and 12.22% at March 31, 2023. The
total risk-based capital ratio was 13.41% at March 31, 2024,
compared to 13.17% at December 31, 2023, and 13.35% at
March 31, 2023. Peoples adopted the five-year transition to
phase in the impact of the adoption of CECL on regulatory capital
ratios. Compared to at December 31, 2023, these ratios
improved due to net income during the first quarter of 2024,
partially offset by dividends paid. When compared to at
March 31, 2023, the tier 1 risk-based capital and the total
risk-based capital ratios improved due to higher net income,
partially offset by the impact of the Limestone Merger and
dividends paid.
At March 31, 2024, book value per common share and tangible
book value per common share, which excludes goodwill and other
intangible assets, were $29.93 and
$18.40, respectively, compared to
$29.83 and $18.16, respectively, at December 31, 2023,
and $28.77 and $17.37, respectively, at March 31, 2023. The
ratio of total stockholders' equity to total assets decreased 4
basis points when compared to December 31, 2023. The tangible
equity to tangible assets ratio, which excludes goodwill and other
intangible assets, increased 4 basis points when compared to at
December 31, 2023. Compared to at March 31, 2023, the
total stockholders' equity to total assets ratio increased from
11.21% to 11.46%, and the tangible equity to tangible assets ratio
increased from 7.08% to 7.37%. The ratios increased compared to at
March 31, 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 $9.3
billion in total assets as of March 31, 2024, and 152
locations, including 133 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 first
quarter 2024 results of operations on April 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 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.
- 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 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 and acquisition-related expenses divided by
average assets. This measure is a non-US GAAP financial measure
since it excludes the after-tax impact of all gains and losses 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
ongoing increasing interest rate policies of the Federal Reserve
Board, the completion and successful integration of acquisitions,
including the Limestone Merger that closed in April 2023, 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 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 further
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
March 31, 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 that which is contained in
this news release.
PER COMMON SHARE
DATA AND SELECTED RATIOS (Unaudited)
|
|
|
At or For the Three
Months Ended
|
|
March
31,
|
|
December
31,
|
|
March
31,
|
|
2024
|
|
2023
|
|
2023
|
PER COMMON
SHARE:
|
|
|
|
|
|
Earnings per common
share:
|
|
|
|
|
|
Basic
|
$
0.85
|
|
$
0.97
|
|
$
0.95
|
Diluted
|
0.84
|
|
0.96
|
|
0.94
|
Cash dividends declared
per common share
|
0.39
|
|
0.39
|
|
0.38
|
Book value per common
share (a)
|
29.93
|
|
29.83
|
|
28.77
|
Tangible book value per
common share (a)(b)
|
18.40
|
|
18.16
|
|
17.37
|
Closing price of common
shares at end of period
|
$
29.61
|
|
$
33.76
|
|
$
25.75
|
|
|
|
|
|
|
SELECTED
RATIOS:
|
|
|
|
|
|
Return on average
stockholders' equity (c)
|
11.30 %
|
|
13.39 %
|
|
13.44 %
|
Return on average
tangible equity (c)(d)
|
19.91 %
|
|
24.45 %
|
|
23.89 %
|
Return on average
assets (c)
|
1.32 %
|
|
1.52 %
|
|
1.49 %
|
Return on average
assets adjusted for non-core items (c)(e)
|
1.33 %
|
|
1.64 %
|
|
1.61 %
|
Efficiency ratio
(f)(i)
|
58.04 %
|
|
55.95 %
|
|
57.78 %
|
Efficiency ratio
adjusted for non-core items (g)(i)
|
58.11 %
|
|
54.85 %
|
|
57.19 %
|
Pre-provision net
revenue to total average assets (c)(h)
|
1.97 %
|
|
2.11 %
|
|
2.11 %
|
Net interest margin
(c)(i)
|
4.27 %
|
|
4.44 %
|
|
4.53 %
|
Dividend payout ratio
(j)
|
46.46 %
|
|
41.75 %
|
|
40.38 %
|
|
|
(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 and acquisition-related expenses. Additional
information regarding the calculation of this ratio is included at
the end of this news release under the caption of "Non-US GAAP
Financial Measures (Unaudited)."
|
(f)
|
The efficiency ratio is
defined as total non-interest expense (less amortization of other
intangible assets) as a percentage of fully tax-equivalent net
interest income plus total non-interest income (excluding all gains
and losses). This ratio represents a non-US GAAP financial measure
since it excludes amortization of other intangible assets, and all
gains and losses included in earnings, and uses fully
tax-equivalent net interest income. Additional information
regarding the calculation of this ratio is included at the end of
this news release under the caption of "Non-US GAAP Financial
Measures (Unaudited)."
|
(g)
|
The efficiency ratio
adjusted for non-core items is defined as core non-interest expense
(less amortization of other intangible assets) as a percentage of
fully tax-equivalent net interest income plus total non-interest
income (excluding all gains and losses). This ratio represents a
non-US GAAP financial measure since it excludes the impact of
acquisition-related expenses 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)
|
Information presented
on a fully tax-equivalent basis, using a 23.2% blended corporate
income tax rate at March 31, 2024 and a 23.3% blended corporate
income tax rate at December 31, 2023 and at March 31,
2023.
|
(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
|
|
March
31,
|
|
December
31,
|
|
March
31,
|
|
2024
|
|
2023
|
|
2023
|
(Dollars in
thousands, except per share data)
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
Total interest
income
|
$
127,593
|
|
$
125,244
|
|
$
84,149
|
Total interest
expense
|
40,953
|
|
36,875
|
|
11,271
|
Net interest
income
|
86,640
|
|
88,369
|
|
72,878
|
Provision for credit
losses
|
6,102
|
|
1,285
|
|
1,853
|
Net interest income
after provision for credit losses
|
80,538
|
|
87,084
|
|
71,025
|
|
|
|
|
|
|
Non-interest
income:
|
|
|
|
|
|
Insurance
income
|
6,498
|
|
4,337
|
|
5,425
|
Electronic banking
income
|
6,046
|
|
6,835
|
|
5,443
|
Trust and investment
income
|
4,599
|
|
4,374
|
|
4,084
|
Deposit account service
charges
|
4,223
|
|
4,490
|
|
3,523
|
Bank owned life
insurance income
|
1,500
|
|
1,227
|
|
707
|
Lease income
|
1,236
|
|
2,822
|
|
1,077
|
Mortgage banking
income
|
321
|
|
338
|
|
314
|
Net loss on investment
securities
|
(1)
|
|
(1,592)
|
|
(1,935)
|
Net loss on asset
disposals and other transactions
|
(341)
|
|
(619)
|
|
(246)
|
Other non-interest
income
|
1,698
|
|
1,922
|
|
668
|
Total
non-interest income
|
25,779
|
|
24,134
|
|
19,060
|
|
|
|
|
|
|
Non-interest
expense:
|
|
|
|
|
|
Salaries and employee
benefit costs
|
38,893
|
|
37,370
|
|
32,028
|
Net occupancy and
equipment expense
|
6,283
|
|
5,532
|
|
4,955
|
Data processing and
software expense
|
5,769
|
|
6,029
|
|
4,562
|
Professional
fees
|
2,967
|
|
3,266
|
|
2,881
|
Amortization of other
intangible assets
|
2,788
|
|
3,271
|
|
1,871
|
Electronic banking
expense
|
1,781
|
|
1,991
|
|
1,491
|
FDIC insurance
expense
|
1,186
|
|
1,260
|
|
801
|
Other loan
expenses
|
1,076
|
|
726
|
|
739
|
Marketing
expense
|
1,056
|
|
1,463
|
|
930
|
Franchise tax
expense
|
881
|
|
862
|
|
1,034
|
Communication
expense
|
799
|
|
745
|
|
613
|
Other non-interest
expense
|
4,986
|
|
5,174
|
|
4,574
|
Total
non-interest expense
|
68,465
|
|
67,689
|
|
56,479
|
Income before
income taxes
|
37,852
|
|
43,529
|
|
33,606
|
Income tax
expense
|
8,268
|
|
9,704
|
|
7,046
|
Net
income
|
$
29,584
|
|
$
33,825
|
|
$
26,560
|
|
|
|
|
|
|
CONSOLIDATED STATEMENTS
OF INCOME (Cont.)
|
|
Three Months
Ended
|
|
March
31,
|
|
December
31,
|
|
March
31,
|
|
2024
|
|
2023
|
|
2023
|
(Dollars in
thousands, except per share data)
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
PER COMMON SHARE
DATA:
|
|
|
|
|
|
Net income available to
common shareholders
|
$
29,584
|
|
$
33,825
|
|
$
26,560
|
Less: Dividends paid on
unvested common shares
|
143
|
|
143
|
|
102
|
Less: Undistributed
loss allocated to unvested common shares
|
64
|
|
79
|
|
34
|
Net earnings allocated
to common shareholders
|
$
29,377
|
|
$
33,603
|
|
$
26,424
|
|
|
|
|
|
|
Weighted-average common
shares outstanding
|
34,740,349
|
|
34,794,313
|
|
27,891,760
|
Effect of potentially
dilutive common shares
|
311,461
|
|
295,512
|
|
130,119
|
Total weighted-average
diluted common shares outstanding
|
35,051,810
|
|
35,089,825
|
|
28,021,879
|
|
|
|
|
|
|
Earnings per common
share – basic
|
$
0.85
|
|
$
0.97
|
|
$
0.95
|
Earnings per common
share – diluted
|
$
0.84
|
|
$
0.96
|
|
$
0.94
|
Cash dividends declared
per common share
|
$
0.39
|
|
$
0.39
|
|
$
0.38
|
|
|
|
|
|
|
Weighted-average common
shares outstanding – basic
|
34,740,349
|
|
34,794,313
|
|
27,891,760
|
Weighted-average common
shares outstanding – diluted
|
35,051,810
|
|
35,089,825
|
|
28,021,879
|
Common shares
outstanding at the end of period
|
35,480,918
|
|
35,314,745
|
|
28,488,158
|
CONSOLIDATED BALANCE
SHEETS
|
|
|
March
31,
|
|
December
31,
|
|
2024
|
|
2023
|
(Dollars in
thousands)
|
(Unaudited)
|
|
|
Assets
|
|
|
|
Cash and cash
equivalents:
|
|
|
|
Cash and due
from banks
|
$
103,784
|
|
$
111,680
|
Interest-bearing
deposits in other banks
|
325,936
|
|
315,042
|
Total cash and cash equivalents
|
429,720
|
|
426,722
|
Available-for-sale
investment securities, at fair value (amortized cost of
|
|
|
|
$1,262,319 at
March 31, 2024 and $1,184,288 at December 31, 2023)
(a)
|
1,116,466
|
|
1,048,322
|
Held-to-maturity
investment securities, at amortized cost (fair value of
|
|
|
|
$602,112 at
March 31, 2024 and $612,022 at December 31, 2023)
(a)
|
679,506
|
|
683,657
|
Other investment
securities, at cost
|
62,939
|
|
63,421
|
Total investment securities (a)
|
1,858,911
|
|
1,795,400
|
Loans and leases, net
of deferred fees and costs (b)
|
6,202,827
|
|
6,159,196
|
Allowance for credit
losses
|
(64,822)
|
|
(62,011)
|
Net
loans and leases
|
6,138,005
|
|
6,097,185
|
Loans held for
sale
|
3,030
|
|
1,866
|
Bank premises and
equipment, net of accumulated depreciation
|
107,258
|
|
103,856
|
Bank owned life
insurance
|
141,568
|
|
140,554
|
Goodwill
|
362,169
|
|
362,169
|
Other intangible
assets
|
47,116
|
|
50,003
|
Other assets
|
182,997
|
|
179,627
|
Total assets
|
$
9,270,774
|
|
$
9,157,382
|
Liabilities
|
|
|
|
Deposits:
|
|
|
|
Non-interest-bearing
|
$
1,468,363
|
|
$
1,567,649
|
Interest-bearing
|
5,858,193
|
|
5,584,648
|
Total deposits
|
7,326,556
|
|
7,152,297
|
Short-term
borrowings
|
513,496
|
|
601,121
|
Long-term
borrowings
|
236,283
|
|
216,241
|
Accrued expenses and
other liabilities
|
132,437
|
|
134,189
|
Total liabilities
|
$
8,208,772
|
|
$
8,103,848
|
|
|
|
|
Stockholders'
Equity
|
|
|
|
Preferred shares, no
par value, 50,000 shares authorized, no shares issued at March 31,
2024 and
December 31, 2023
|
—
|
|
—
|
Common shares, no par
value, 50,000,000 shares authorized, 36,747,787 shares issued at
March 31, 2024
and 36,736,041 shares issued at December 31, 2023, including shares
in treasury
|
861,925
|
|
865,227
|
Retained
earnings
|
343,076
|
|
327,237
|
Accumulated other
comprehensive loss, net of deferred income taxes
|
(108,940)
|
|
(101,590)
|
Treasury stock, at
cost, 1,355,337 common shares at March 31, 2024 and 1,511,348
common shares at
December 31, 2023
|
(34,059)
|
|
(37,340)
|
Total stockholders' equity
|
1,062,002
|
|
1,053,534
|
Total liabilities and stockholders' equity
|
$
9,270,774
|
|
$
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 March 31, 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)
|
|
|
March
31,
|
December
31,
|
September
30,
|
June
30,
|
March
31,
|
(Dollars in
thousands)
|
2024
|
2023
|
2023
|
2023
|
2023
|
Loan
Portfolio
|
|
|
|
|
|
Construction
|
$
314,687
|
$
364,019
|
$
374,016
|
$
418,741
|
$
232,296
|
Commercial real estate,
other
|
2,243,780
|
2,196,957
|
2,189,984
|
2,071,514
|
1,481,062
|
Commercial and
industrial
|
1,214,615
|
1,184,986
|
1,128,809
|
1,160,310
|
891,139
|
Premium
finance
|
238,962
|
203,177
|
189,251
|
162,357
|
158,263
|
Leases
|
422,694
|
414,060
|
402,635
|
377,791
|
354,641
|
Residential real
estate
|
781,888
|
791,095
|
791,965
|
791,442
|
712,602
|
Home equity lines of
credit
|
221,079
|
208,675
|
203,940
|
199,221
|
174,383
|
Consumer,
indirect
|
650,228
|
666,472
|
668,371
|
654,371
|
647,177
|
Consumer,
direct
|
113,588
|
128,769
|
134,562
|
138,019
|
107,406
|
Deposit account
overdrafts
|
1,306
|
986
|
857
|
830
|
749
|
Total loans and leases
|
$
6,202,827
|
$
6,159,196
|
$ 6,084,390
|
$ 5,974,596
|
$ 4,759,718
|
Total acquired loans
and leases (a)
|
$
1,757,169
|
$
1,825,129
|
$ 1,925,554
|
$ 2,032,505
|
$ 1,024,739
|
Total originated loans and leases
|
$
4,445,658
|
$
4,334,067
|
$ 4,158,836
|
$ 3,942,091
|
$ 3,734,979
|
Deposit
Balances
|
|
|
|
|
|
Non-interest-bearing
deposits (b)
|
$
1,468,363
|
$
1,567,649
|
$ 1,569,095
|
$ 1,682,634
|
$ 1,555,064
|
Interest-bearing
deposits:
|
|
|
|
|
|
Interest-bearing
demand accounts (b)
|
1,107,712
|
1,144,357
|
1,181,079
|
1,225,646
|
1,085,169
|
Retail
certificates of deposit
|
1,680,413
|
1,443,417
|
1,198,733
|
950,783
|
622,091
|
Money market
deposit accounts
|
859,961
|
775,488
|
730,902
|
718,633
|
579,106
|
Governmental
deposit accounts
|
825,170
|
726,713
|
761,625
|
705,596
|
649,303
|
Savings
accounts
|
901,493
|
919,244
|
987,170
|
1,116,622
|
1,024,638
|
Brokered
deposits
|
483,444
|
575,429
|
608,914
|
559,955
|
273,156
|
Total interest-bearing deposits
|
$
5,858,193
|
$
5,584,648
|
$ 5,468,423
|
$ 5,277,235
|
$ 4,233,463
|
Total deposits
|
$
7,326,556
|
$
7,152,297
|
$ 7,037,518
|
$ 6,959,869
|
$ 5,788,527
|
Total demand deposits
(b)
|
$
2,576,075
|
$
2,712,006
|
$ 2,750,174
|
$ 2,908,280
|
$ 2,640,233
|
Asset
Quality
|
|
|
|
|
|
Nonperforming assets
(NPAs):
|
|
|
|
|
|
Loans 90+ days
past due and accruing
|
$
7,662
|
$
6,716
|
$
9,117
|
$
5,924
|
$
4,014
|
Nonaccrual
loans
|
31,361
|
25,477
|
26,187
|
28,796
|
29,980
|
Total nonperforming loans (NPLs) (f)
|
39,023
|
32,193
|
35,304
|
34,720
|
33,994
|
Other real
estate owned (OREO)
|
7,238
|
7,174
|
7,174
|
7,166
|
8,778
|
Total NPAs
|
$
46,261
|
$
39,367
|
$
42,478
|
$
41,886
|
$
42,772
|
Criticized loans
(c)
|
$
256,565
|
$
235,239
|
$
213,156
|
$
219,885
|
$
198,812
|
Classified loans
(d)
|
147,518
|
120,027
|
124,836
|
110,972
|
93,168
|
Allowance for credit
losses as a percent of NPLs (f)
|
166.11 %
|
194.38 %
|
178.23 %
|
176.30 %
|
156.80 %
|
NPLs as a percent of
total loans (f)
|
0.63 %
|
0.52 %
|
0.58 %
|
0.58 %
|
0.71 %
|
NPAs as a percent of
total assets (f)
|
0.50 %
|
0.43 %
|
0.48 %
|
0.48 %
|
0.58 %
|
NPAs as a percent of
total loans and OREO (f)
|
0.74 %
|
0.64 %
|
0.70 %
|
0.70 %
|
0.90 %
|
Criticized loans as a
percent of total loans (c)
|
4.14 %
|
3.82 %
|
3.50 %
|
3.68 %
|
4.18 %
|
Classified loans as a
percent of total loans (d)
|
2.38 %
|
1.95 %
|
2.05 %
|
1.86 %
|
1.96 %
|
Allowance for credit
losses as a percent of total loans
|
1.05 %
|
1.01 %
|
1.03 %
|
1.02 %
|
1.12 %
|
Total demand deposits
as a percent of total deposits (b)
|
35.16 %
|
37.92 %
|
39.08 %
|
41.79 %
|
45.61 %
|
Capital Information
(e)(g)(i)
|
|
|
|
|
|
Common equity tier 1
capital ratio (h)
|
11.69 %
|
11.56 %
|
11.57 %
|
11.36 %
|
12.22 %
|
Tier 1 risk-based
capital ratio
|
12.50 %
|
12.37 %
|
12.31 %
|
12.10 %
|
12.49 %
|
Total risk-based
capital ratio (tier 1 and tier 2)
|
13.41 %
|
13.17 %
|
13.14 %
|
12.92 %
|
13.35 %
|
Leverage
ratio
|
9.43 %
|
9.48 %
|
9.34 %
|
9.64 %
|
9.02 %
|
Common equity tier 1
capital
|
$
780,236
|
$
766,691
|
$
752,728
|
$
728,892
|
$
624,292
|
Tier 1
capital
|
834,308
|
820,495
|
801,010
|
776,753
|
638,116
|
Total capital (tier 1
and tier 2)
|
894,881
|
873,225
|
855,054
|
828,910
|
682,477
|
Total risk-weighted
assets
|
$
6,674,594
|
$
6,630,945
|
$ 6,505,779
|
$ 6,417,511
|
$ 5,110,318
|
Total stockholders'
equity to total assets
|
11.46 %
|
11.50 %
|
11.11 %
|
11.37 %
|
11.21 %
|
Tangible equity to
tangible assets (j)
|
7.37 %
|
7.33 %
|
6.85 %
|
7.00 %
|
7.08 %
|
|
|
(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)
|
March 31, 2024 data
based on preliminary analysis and subject to revision.
|
(h)
|
Peoples' capital
conservation buffer was 5.60% at March 31, 2024, 5.38% at December
31, 2023, 5.14% at September 30, 2023, 4.92% at June 30, 2023, and
5.35% at March 31, 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
|
|
March
31,
|
|
December
31,
|
|
March
31,
|
|
2024
|
|
2023
|
|
2023
|
(Dollars in
thousands)
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
Provision for credit
losses
|
|
|
|
|
|
Provision for credit
losses
|
$
5,834
|
|
$
1,048
|
|
$
1,673
|
Provision for checking
account overdrafts
|
268
|
|
237
|
|
180
|
Total provision
for credit losses
|
$
6,102
|
|
$
1,285
|
|
$
1,853
|
|
|
|
|
|
|
Net
Charge-Offs
|
|
|
|
|
|
Gross
charge-offs
|
$
3,874
|
|
$
4,750
|
|
$
1,855
|
Recoveries
|
554
|
|
1,261
|
|
311
|
Net
charge-offs
|
$
3,320
|
|
$
3,489
|
|
$
1,544
|
|
|
|
|
|
|
Net Charge-Offs
(Recoveries) by Type
|
|
|
|
|
|
Construction
|
$
—
|
|
$
—
|
|
$
9
|
Commercial real estate,
other
|
$
128
|
|
(529)
|
|
6
|
Commercial and
industrial
|
228
|
|
542
|
|
1
|
Premium
finance
|
46
|
|
43
|
|
14
|
Leases
|
1,058
|
|
1,994
|
|
389
|
Residential real
estate
|
(3)
|
|
(47)
|
|
12
|
Home equity lines of
credit
|
(7)
|
|
3
|
|
19
|
Consumer,
indirect
|
1,390
|
|
1,104
|
|
850
|
Consumer,
direct
|
217
|
|
130
|
|
89
|
Deposit account
overdrafts
|
263
|
|
249
|
|
155
|
Total net
charge-offs
|
$
3,320
|
|
$
3,489
|
|
$
1,544
|
|
|
|
|
|
|
As a percent of average
total loans (annualized)
|
0.22 %
|
|
0.23 %
|
|
0.13 %
|
SUPPLEMENTAL
INFORMATION (Unaudited)
|
|
|
March
31,
|
|
December
31,
|
|
September
30,
|
|
June
30,
|
|
March
31,
|
(Dollars in
thousands)
|
2024
|
|
2023
|
|
2023
|
|
2023
|
|
2023
|
|
|
|
|
|
|
|
|
|
|
Trust assets under
administration and management
|
$
2,061,402
|
|
$
2,021,249
|
|
$
1,900,488
|
|
$
1,931,789
|
|
$
1,803,887
|
Brokerage assets under
administration and management
|
1,530,954
|
|
1,473,814
|
|
1,364,372
|
|
1,379,309
|
|
1,318,300
|
Mortgage loans serviced
for others
|
348,937
|
|
356,784
|
|
366,996
|
|
375,882
|
|
384,005
|
Employees (full-time
equivalent)
|
1,498
|
|
1,478
|
|
1,482
|
|
1,500
|
|
1,286
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED AVERAGE
BALANCE SHEETS AND NET INTEREST INCOME (Unaudited)
|
|
|
Three Months
Ended
|
|
March 31,
2024
|
|
December 31,
2023
|
|
March 31,
2023
|
(Dollars in
thousands)
|
Balance
|
Income/
Expense
|
Yield/
Cost
|
|
Balance
|
Income/
Expense
|
Yield/
Cost
|
|
Balance
|
Income/
Expense
|
Yield/
Cost
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
Short-term
investments
|
$
142,381
|
$
1,922
|
5.44 %
|
|
$ 58,037
|
$ 901
|
6.16 %
|
|
$ 35,223
|
$ 388
|
4.47 %
|
Investment securities
(a)(b)
|
1,832,599
|
15,275
|
3.33 %
|
|
1,768,033
|
14,309
|
3.24 %
|
|
1,788,254
|
12,347
|
2.76 %
|
Loans
(b)(c):
|
|
|
|
|
|
|
|
|
|
|
|
Construction
|
339,448
|
6,404
|
7.48 %
|
|
387,147
|
7,396
|
7.48 %
|
|
239,492
|
3,963
|
6.62 %
|
Commercial real estate,
other
|
2,076,219
|
37,242
|
7.12 %
|
|
2,014,824
|
38,076
|
7.39 %
|
|
1,333,062
|
19,794
|
5.94 %
|
Commercial and
industrial
|
1,203,196
|
23,521
|
7.75 %
|
|
1,144,857
|
22,728
|
7.77 %
|
|
877,391
|
14,610
|
6.66 %
|
Premium
finance
|
210,405
|
4,564
|
8.60 %
|
|
189,882
|
3,781
|
7.79 %
|
|
147,895
|
2,150
|
5.81 %
|
Leases
|
409,870
|
12,067
|
11.68 %
|
|
400,258
|
11,505
|
11.25 %
|
|
342,583
|
9,643
|
11.26 %
|
Residential real estate
(d)
|
930,989
|
11,322
|
4.86 %
|
|
941,102
|
11,233
|
4.77 %
|
|
839,822
|
9,717
|
4.63 %
|
Home equity lines of
credit
|
216,743
|
4,297
|
8.00 %
|
|
206,847
|
4,088
|
7.84 %
|
|
176,327
|
2,966
|
6.82 %
|
Consumer,
indirect
|
656,244
|
9,281
|
5.70 %
|
|
672,042
|
9,316
|
5.50 %
|
|
640,359
|
7,231
|
4.58 %
|
Consumer,
direct
|
124,091
|
2,098
|
6.82 %
|
|
137,258
|
2,325
|
6.72 %
|
|
108,488
|
1,739
|
6.50 %
|
Total loans
|
6,167,205
|
110,796
|
7.15 %
|
|
6,094,217
|
110,448
|
7.12 %
|
|
4,705,419
|
71,813
|
6.12 %
|
Allowance for credit
losses
|
(61,236)
|
|
|
|
(62,241)
|
|
|
|
(52,669)
|
|
|
Net loans
|
6,105,969
|
|
|
|
6,031,976
|
|
|
|
4,652,750
|
|
|
Total earning
assets
|
8,080,949
|
127,993
|
6.31 %
|
|
7,858,046
|
125,658
|
6.30 %
|
|
6,476,227
|
84,548
|
5.23 %
|
|
|
|
|
|
|
|
|
|
|
|
|
Goodwill and other
intangible assets
|
410,719
|
|
|
|
411,616
|
|
|
|
325,545
|
|
|
Other assets
|
529,983
|
|
|
|
556,993
|
|
|
|
420,692
|
|
|
Total assets
|
$
9,021,651
|
|
|
|
$ 8,826,655
|
|
|
|
$ 7,222,464
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Equity
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
deposits:
|
|
|
|
|
|
|
|
|
|
|
|
Savings
accounts
|
$
905,713
|
$
226
|
0.10 %
|
|
$
939,549
|
$ 228
|
0.10 %
|
|
$ 1,044,392
|
$ 136
|
0.05 %
|
Governmental deposit
accounts
|
763,899
|
5,084
|
2.68 %
|
|
750,030
|
4,844
|
2.56 %
|
|
637,959
|
1,066
|
0.68 %
|
Interest-bearing demand
accounts
|
1,109,033
|
452
|
0.16 %
|
|
1,145,841
|
373
|
0.13 %
|
|
1,103,966
|
180
|
0.07 %
|
Money market deposit
accounts
|
784,759
|
4,888
|
2.51 %
|
|
751,503
|
4,212
|
2.22 %
|
|
583,574
|
825
|
0.57 %
|
Retail certificates of
deposit
|
1,582,426
|
15,900
|
4.05 %
|
|
1,336,440
|
12,079
|
3.59 %
|
|
576,645
|
1,750
|
1.23 %
|
Brokered deposits
(e)
|
568,996
|
6,753
|
4.79 %
|
|
575,203
|
7,865
|
5.42 %
|
|
224,325
|
1,704
|
3.08 %
|
Total interest-bearing
deposits
|
5,714,826
|
33,303
|
2.35 %
|
|
5,498,566
|
29,601
|
2.14 %
|
|
4,170,861
|
5,661
|
0.55 %
|
Short-term borrowings
(e)
|
388,830
|
4,184
|
4.32 %
|
|
421,216
|
4,781
|
4.51 %
|
|
471,426
|
4,457
|
3.83 %
|
Long-term
borrowings
|
230,274
|
3,466
|
6.04 %
|
|
186,265
|
2,493
|
5.34 %
|
|
98,477
|
1,153
|
4.69 %
|
Total borrowed
funds
|
619,104
|
7,650
|
4.93 %
|
|
607,481
|
7,274
|
4.76 %
|
|
569,903
|
5,610
|
3.98 %
|
Total interest-bearing
liabilities
|
6,333,930
|
40,953
|
2.60 %
|
|
6,106,047
|
36,875
|
2.40 %
|
|
4,740,764
|
11,271
|
0.96 %
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest-bearing
deposits
|
1,501,738
|
|
|
|
1,570,110
|
|
|
|
1,556,636
|
|
|
Other
liabilities
|
133,202
|
|
|
|
147,983
|
|
|
|
123,599
|
|
|
Total
liabilities
|
7,968,870
|
|
|
|
7,824,140
|
|
|
|
6,420,999
|
|
|
Stockholders'
equity
|
1,052,781
|
|
|
|
1,002,515
|
|
|
|
801,465
|
|
|
Total liabilities and
stockholders' equity
|
$
9,021,651
|
|
|
|
$ 8,826,655
|
|
|
|
$ 7,222,464
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income/spread (b)
|
|
$
87,040
|
3.71 %
|
|
|
$
88,783
|
3.90 %
|
|
|
$
73,277
|
4.27 %
|
Net interest margin
(b)
|
|
|
4.27 %
|
|
|
|
4.44 %
|
|
|
|
4.53 %
|
|
|
(a)
|
Average balances are
based on carrying value.
|
(b)
|
Interest income and
yields are presented on a fully tax-equivalent basis, using a
blended corporate income tax rate of 23.2% for the three months
ended March 31, 2024, and 23.3% for the three months ended December
31, 2023 and March 31, 2023.
|
(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
|
|
March
31,
|
|
December
31,
|
|
March
31,
|
(Dollars in
thousands)
|
2024
|
|
2023
|
|
2023
|
|
|
|
|
|
|
Core non-interest
expense:
|
|
|
|
|
|
Total non-interest
expense
|
$
68,465
|
|
$
67,689
|
|
$
56,479
|
Less:
acquisition-related expenses
|
(84)
|
|
1,276
|
|
551
|
Core non-interest
expense
|
$
68,549
|
|
$
66,413
|
|
$
55,928
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
March
31,
|
|
December
31,
|
|
March
31,
|
(Dollars in
thousands)
|
2024
|
|
2023
|
|
2023
|
|
|
|
|
|
|
Efficiency
ratio:
|
|
|
|
|
|
Total non-interest
expense
|
$
68,465
|
|
$
67,689
|
|
$
56,479
|
Less: amortization of
other intangible assets
|
2,788
|
|
3,271
|
|
1,871
|
Adjusted total
non-interest expense
|
65,677
|
|
64,418
|
|
54,608
|
|
|
|
|
|
|
Total non-interest
income
|
25,779
|
|
24,134
|
|
19,060
|
Less: net loss on
investment securities
|
(1)
|
|
(1,592)
|
|
(1,935)
|
Less: net loss on asset
disposals and other transactions
|
(341)
|
|
(619)
|
|
(246)
|
Total non-interest
income, excluding net gains and losses
|
26,121
|
|
26,345
|
|
21,241
|
|
|
|
|
|
|
Net interest
income
|
86,640
|
|
88,369
|
|
72,878
|
Add: fully
tax-equivalent adjustment (a)
|
400
|
|
414
|
|
399
|
Net interest income on
a fully tax-equivalent basis
|
87,040
|
|
88,783
|
|
73,277
|
|
|
|
|
|
|
Adjusted
revenue
|
$
113,161
|
|
$
115,128
|
|
$
94,518
|
|
|
|
|
|
|
Efficiency
ratio
|
58.04 %
|
|
55.95 %
|
|
57.78 %
|
|
|
|
|
|
|
Efficiency ratio
adjusted for non-core items:
|
|
|
|
|
Core non-interest
expense
|
$
68,549
|
|
$
66,413
|
|
$
55,928
|
Less: amortization of
other intangible assets
|
2,788
|
|
3,271
|
|
1,871
|
Adjusted core
non-interest expense
|
65,761
|
|
63,142
|
|
54,057
|
|
|
|
|
|
|
Adjusted
revenue
|
$
113,161
|
|
$
115,128
|
|
$
94,518
|
|
|
|
|
|
|
Efficiency ratio
adjusted for non-core items
|
58.11 %
|
|
54.85 %
|
|
57.19 %
|
|
|
|
|
|
|
|
|
(a)
|
Tax effect is
calculated using a 23.2% blended corporate income tax rate at March
31, 2024 and a 23.3% blended corporate income tax rate at December
31, 2023 and at March 31, 2023.
|
NON-US GAAP
FINANCIAL MEASURES (Unaudited) -- (Continued)
|
|
|
At or For the Three
Months Ended
|
|
March
31,
|
|
December
31,
|
|
September
30,
|
|
June
30,
|
|
March
31,
|
(Dollars in
thousands, except per share data)
|
2024
|
|
2023
|
|
2023
|
|
2023
|
|
2023
|
|
|
|
|
|
|
|
|
|
|
Tangible
equity:
|
|
|
|
|
|
|
|
|
|
Total stockholders'
equity
|
$ 1,062,002
|
|
$ 1,053,534
|
|
$
993,219
|
|
$
998,907
|
|
$
819,543
|
Less: goodwill and
other intangible assets
|
409,285
|
|
412,172
|
|
408,494
|
|
413,172
|
|
324,562
|
Tangible
equity
|
$
652,717
|
|
$
641,362
|
|
$
584,725
|
|
$
585,735
|
|
$
494,981
|
|
|
|
|
|
|
|
|
|
|
Tangible
assets:
|
|
|
|
|
|
|
|
|
|
Total assets
|
$ 9,270,774
|
|
$ 9,157,382
|
|
$ 8,942,534
|
|
$ 8,786,635
|
|
$ 7,311,520
|
Less: goodwill and
other intangible assets
|
409,285
|
|
412,172
|
|
408,494
|
|
413,172
|
|
324,562
|
Tangible
assets
|
$ 8,861,489
|
|
$ 8,745,210
|
|
$ 8,534,040
|
|
$ 8,373,463
|
|
$ 6,986,958
|
|
|
|
|
|
|
|
|
|
|
Tangible book value
per common share:
|
|
|
|
|
|
|
|
|
|
Tangible
equity
|
$
652,717
|
|
$
641,362
|
|
$
584,725
|
|
$
585,735
|
|
$
494,981
|
Common shares
outstanding
|
35,480,918
|
|
35,314,745
|
|
35,395,990
|
|
35,374,916
|
|
28,488,158
|
|
|
|
|
|
|
|
|
|
|
Tangible book value per
common share
|
$
18.40
|
|
$
18.16
|
|
$
16.52
|
|
$
16.56
|
|
$
17.37
|
|
|
|
|
|
|
|
|
|
|
Tangible equity to
tangible assets ratio:
|
|
|
|
|
Tangible
equity
|
$
652,717
|
|
$
641,362
|
|
$
584,725
|
|
$
585,735
|
|
$
494,981
|
Tangible
assets
|
$ 8,861,489
|
|
$ 8,745,210
|
|
$ 8,534,040
|
|
$ 8,373,463
|
|
$ 6,986,958
|
|
|
|
|
|
|
|
|
|
|
Tangible equity to
tangible assets
|
7.37 %
|
|
7.33 %
|
|
6.85 %
|
|
7.00 %
|
|
7.08 %
|
|
Three Months
Ended
|
|
March
31,
|
|
December
31,
|
|
March
31,
|
(Dollars in
thousands)
|
2024
|
|
2023
|
|
2023
|
|
|
|
|
|
|
Pre-provision net
revenue:
|
|
|
|
|
|
Income before income
taxes
|
$
37,852
|
|
$
43,529
|
|
$
33,606
|
Add: provision for
credit losses
|
6,102
|
|
1,285
|
|
1,853
|
Add: loss on
OREO
|
—
|
|
—
|
|
10
|
Add: loss on investment
securities
|
1
|
|
1,592
|
|
1,935
|
Add: loss on other
assets
|
309
|
|
586
|
|
229
|
Add: loss on other
transactions
|
32
|
|
33
|
|
7
|
Pre-provision net
revenue
|
$
44,296
|
|
$
47,025
|
|
$
37,640
|
|
|
|
|
|
|
Total average
assets
|
9,021,651
|
|
8,826,655
|
|
7,222,464
|
|
|
|
|
|
|
Pre-provision net
revenue to total average assets (annualized)
|
1.97 %
|
|
2.11 %
|
|
2.11 %
|
Weighted-average common
shares outstanding – diluted
|
35,051,810
|
|
35,089,825
|
|
28,021,879
|
Pre-provision net
revenue per common share – diluted
|
$
1.26
|
|
$
1.34
|
|
$
1.34
|
NON-US GAAP
FINANCIAL MEASURES (Unaudited) -- (Continued)
|
|
|
Three Months
Ended
|
|
March
31,
|
|
December
31,
|
|
March
31,
|
(Dollars in
thousands)
|
2024
|
|
2023
|
|
2023
|
|
|
|
|
|
|
Annualized net
income adjusted for non-core items:
|
Net income
|
$
29,584
|
|
$
33,825
|
|
$
26,560
|
Add: net loss on
investment securities
|
1
|
|
1,592
|
|
1,935
|
Less: tax effect of net
loss on investment securities (a)
|
—
|
|
334
|
|
406
|
Add: net loss on asset
disposals and other transactions
|
341
|
|
619
|
|
246
|
Less: tax effect of net
loss on asset disposals and other transactions (a)
|
72
|
|
130
|
|
52
|
Add:
acquisition-related expenses
|
(84)
|
|
1,276
|
|
551
|
Less: tax effect of
acquisition-related expenses (a)
|
(18)
|
|
268
|
|
116
|
Net income adjusted for
non-core items
|
$
29,788
|
|
$
36,580
|
|
$
28,718
|
|
|
|
|
|
|
Days in the
period
|
91
|
|
92
|
|
90
|
Days in the
year
|
366
|
|
365
|
|
365
|
Annualized net
income
|
$
118,986
|
|
$
134,197
|
|
$ 107,716
|
Annualized net income
adjusted for non-core items
|
$
119,807
|
|
$
145,127
|
|
$ 116,467
|
Return on average
assets:
|
|
|
|
|
|
Annualized net
income
|
$
118,986
|
|
$
134,197
|
|
$ 107,716
|
Total average
assets
|
$
9,021,651
|
|
$
8,826,655
|
|
$
7,222,464
|
Return on average
assets
|
1.32 %
|
|
1.52 %
|
|
1.49 %
|
Return on average
assets adjusted for non-core items:
|
Annualized net income
adjusted for non-core items
|
$
119,807
|
|
$
145,127
|
|
$ 116,467
|
Total average
assets
|
$
9,021,651
|
|
$
8,826,655
|
|
$
7,222,464
|
Return on average
assets adjusted for non-core items
|
1.33 %
|
|
1.64 %
|
|
1.61 %
|
|
|
(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
|
|
March
31,
|
|
December
31,
|
|
March
31,
|
(Dollars in
thousands)
|
2024
|
|
2023
|
|
2023
|
|
|
|
|
|
|
Annualized net
income excluding amortization of other intangible
assets:
|
Net income
|
$
29,584
|
|
$
33,825
|
|
$
26,560
|
Add: amortization of
other intangible assets
|
2,788
|
|
3,271
|
|
1,871
|
Less: tax effect of
amortization of other intangible assets (a)
|
585
|
|
687
|
|
393
|
Net income excluding
amortization of other intangible assets
|
$
31,787
|
|
$
36,409
|
|
$
28,038
|
|
|
|
|
|
|
Days in the
period
|
91
|
|
92
|
|
90
|
Days in the
year
|
366
|
|
365
|
|
365
|
Annualized net
income
|
$
118,986
|
|
$ 134,197
|
|
$ 107,716
|
Annualized net income
excluding amortization of other intangible assets
|
$
127,847
|
|
$ 144,449
|
|
$ 113,710
|
|
|
|
|
|
|
Average tangible
equity:
|
Total average
stockholders' equity
|
$
1,052,781
|
|
$
1,002,515
|
|
$ 801,465
|
Less: average goodwill
and other intangible assets
|
410,719
|
|
411,616
|
|
325,545
|
Average tangible
equity
|
$
642,062
|
|
$ 590,899
|
|
$ 475,920
|
|
|
|
|
|
|
Return on average
stockholders' equity ratio:
|
|
Annualized net
income
|
$
118,986
|
|
$ 134,197
|
|
$ 107,716
|
Average stockholders'
equity
|
$
1,052,781
|
|
$
1,002,515
|
|
$ 801,465
|
|
|
|
|
|
|
Return on average
stockholders' equity
|
11.30 %
|
|
13.39 %
|
|
13.44 %
|
|
|
Return on average
tangible equity ratio:
|
|
Annualized net income
excluding amortization of other intangible assets
|
$
127,847
|
|
$ 144,449
|
|
$ 113,710
|
Average tangible
equity
|
$
642,062
|
|
$ 590,899
|
|
$ 475,920
|
|
|
|
|
|
|
Return on average
tangible equity
|
19.91 %
|
|
24.45 %
|
|
23.89 %
|
|
|
|
|
|
|
|
|
(a)
|
Tax effect is
calculated using a 21% statutory federal corporate income tax
rate.
|
View original
content:https://www.prnewswire.com/news-releases/peoples-bancorp-inc-announces-first-quarter-2024-results-302123761.html
SOURCE Peoples Bancorp Inc.