PEOPLES BANCORP INC. (NASDAQ:PEBO) Files An 8-K Results of Operations and Financial Condition

PEOPLES BANCORP INC. (NASDAQ:PEBO) Files An 8-K Results of Operations and Financial Condition
Item 2.02 Results of Operations and Financial Condition

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On January 22, 2019, management of Peoples Bancorp Inc. (“Peoples”) conducted a facilitated conference call at approximately 11:00 a.m., Eastern Standard Time, to discuss results of operations for the quarter and twelve months ended December 31, 2018. A replay of the conference call audio will be available on Peoples’ website, www.peoplesbancorp.com, in the “Investor Relations” section for one year. A copy of the transcript of the conference call is included as Exhibit 99.1 to this Current Report on Form 8-K.

The information contained in this Item 2.02 and Exhibit 99.1 included with this Current Report on Form 8-K, is being furnished to Item 2.02 and shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section, nor shall such information be deemed to be incorporated by reference in any registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as otherwise stated in such filing.

During the conference call, management referred to non-Generally Accepted Accounting Principles (“GAAP”) financial measures that are used by management to provide information useful to investors in understanding Peoples’ operating performance and trends, and to facilitate comparisons with the performance of Peoples’ peers. The following tables show the differences between the non-GAAP financial measures referred to during the conference call and the most directly comparable GAAP-based financial measures.

NON-GAAP FINANCIAL MEASURES (Unaudited)

The following non-GAAP financial measures used by Peoples provide information useful to investors in understanding Peoples’ operating performance and trends, and facilitate comparisons with the performance of Peoples’ peers. The following tables summarize the non-GAAP financial measures derived from amounts reported in Peoples’ consolidated financial statements:

Three Months Ended

Year Ended

December31,

September30,

December31,

December31,

(Dollars in thousands)

Core non-interest expense:

Total non-interest expense

$

30,956

$

30,829

$

27,406

$

125,977

$

107,975

Less: acquisition-related expenses

7,262

Less: pension settlement charges

Core non-interest expense

$

30,483

$

29,978

$

26,823

$

118,448

$

107,392

Three Months Ended

Year Ended

December31,

September30,

December31,

December31,

(Dollars in thousands)

Efficiency Ratio:

Total non-interest expense

$

30,956

$

30,829

$

27,406

$

125,977

$

107,975

Less: amortization of other intangible assets

3,338

3,516

Adjusted total non-interest expense

30,095

29,967

26,493

122,639

104,459

Total non-interest income

14,177

14,353

13,739

56,754

55,573

Less: net gain (loss) on investment securities

(146

)

2,983

Less: net (loss) gain on asset disposals and other transactions

(15

)

(144

)

(334

)

(63

)

Adjusted total non-interest income

14,192

14,341

13,119

57,234

52,653

Net interest income

34,121

33,324

29,122

129,612

113,377

Add: fully tax-equivalent adjustment (a)

1,912

Net interest income on a fully tax-equivalent basis

34,333

33,545

29,562

130,493

115,289

Adjusted revenue

$

48,525

$

47,886

$

42,681

$

187,727

$

167,942

Efficiency ratio

62.02

%

62.58

%

62.07

%

65.33

%

62.20

%

Efficiency Ratio Adjusted for Non-core Items:

Core non-interest expense

$

30,483

$

29,978

$

26,823

$

118,448

$

107,392

Less: amortization of other intangible assets

3,338

3,516

Adjusted core non-interest expense

29,622

29,116

25,910

115,110

103,876

Adjusted revenue

$

48,525

$

47,886

$

42,681

$

187,727

$

167,942

Efficiency ratio adjusted for non-core items

61.04

%

60.80

%

60.71

%

61.32

%

61.85

%

(a) Based on a 21% federal statutory corporate income tax rate for the 2018 periods, and a 35% federal statutory corporate income tax rate for the 2017 periods.

NON-GAAP FINANCIAL MEASURES (Unaudited) — (Continued)

At or For the Three Months Ended

December31,

September30,

June 30,

March 31,

December 31,

(Dollars in thousands, except per share data)

Tangible Equity:

Total stockholders’ equity

$

520,798

$

504,290

$

499,339

$

456,815

$

458,592

Less: goodwill and other intangible assets

162,085

163,401

163,953

143,820

144,576

Tangible equity

$

358,713

$

340,889

$

335,386

$

312,995

$

314,016

Tangible Assets:

Total assets

$

3,992,112

$

4,003,089

$

3,972,091

$

3,634,929

$

3,581,686

Less: goodwill and other intangible assets

162,085

163,401

163,953

143,820

144,576

Tangible assets

$

3,830,027

$

3,839,688

$

3,808,138

$

3,491,109

$

3,437,110

Tangible Book Value per Common Share:

Tangible equity

$

358,713

$

340,889

$

335,386

$

312,995

$

314,016

Common shares outstanding

19,565,029

19,550,014

19,528,952

18,365,035

18,287,449

Tangible book value per common share

$

18.33

$

17.44

$

17.17

$

17.04

$

17.17

Tangible Equity to Tangible Assets Ratio:

Tangible equity

$

358,713

$

340,889

$

335,386

$

312,995

$

314,016

Tangible assets

$

3,830,027

$

3,839,688

$

3,808,138

$

3,491,109

$

3,437,110

Tangible equity to tangible assets

9.37

%

8.88

%

8.81

%

8.97

%

9.14

%

Three Months Ended

Year Ended

December31,

September30,

December31,

December31,

(Dollars in thousands)

Pre-Provision Net Revenue:

Income before income taxes

$

16,367

$

15,546

$

14,340

$

54,941

$

57,203

Add: provision for loan losses

1,302

1,115

5,448

3,772

Add: loss on debt extinguishment

Add: net loss on OREO

Add: net loss on investment securities

Add: net loss on other assets

Less: net gain on investment securities

2,983

Less: net gain on other assets

Pre-provision net revenue

$

17,387

$

16,836

$

14,835

$

60,717

$

58,055

Total average assets

3,990,989

3,998,254

3,562,243

3,872,488

3,510,274

Pre-provision net revenue to total average assets (annualized)

1.73

%

1.67

%

1.65

%

1.57

%

1.65

%

NON-GAAP FINANCIAL MEASURES (Unaudited) — (Continued)

For the Three Months Ended

For the Year Ended

December31,

September 30,

December31,

December31,

(Dollars in thousands)

Annualized Net Income Excluding Amortization of Other Intangible Assets:

Net income

$

13,897

$

12,725

$

9,001

$

46,255

$

38,471

Add: amortization of other intangible assets

3,338

3,516

Less: tax effect (a) of amortization of other intangible assets

1,231

Net income excluding amortization of other intangible assets

$

14,577

$

13,406

$

9,594

$

48,892

$

40,756

Days in the period

Days in the year

Annualized net income

$

55,135

$

50,485

$

35,710

$

46,255

$

38,471

Annualized net income excluding amortization of other intangible assets

$

57,833

$

53,187

$

38,063

$

48,892

$

40,756

Average Tangible Stockholders’ Equity:

Total average stockholders’ equity

$

508,548

$

501,785

$

458,648

$

488,795

$

450,379

Less: average goodwill and other intangible assets

162,790

163,615

143,942

158,115

144,696

Average tangible stockholders’ equity

$

345,758

$

338,170

$

314,706

$

330,680

$

305,683

Return on Average Stockholders’ Equity Ratio:

Annualized net income

$

55,135

$

50,485

$

35,710

$

46,255

$

38,471

Average stockholders’ equity

$

508,548

$

501,785

$

458,648

$

488,795

$

450,379

Return on average stockholders’ equity

10.84

%

10.06

%

7.79

%

9.46

%

8.54

%

Return on Average Tangible Stockholders’ Equity Ratio:

Annualized net income excluding amortization of other intangible assets

$

57,833

$

53,187

$

38,063

$

48,892

$

40,756

Average tangible stockholders’ equity

$

345,758

$

338,170

$

314,706

$

330,680

$

305,683

Return on average tangible stockholders’ equity

16.73

%

15.73

%

12.09

%

14.79

%

13.33

%

(a) Tax effect is calculated using a 21% federal statutory corporate income tax rate for the 2018 periods and a 35% federal statutory corporate income tax

rate for the 2017 periods.

Item 9.01 Financial Statements and Exhibits

a) – c)

Not applicable.

d) Exhibits

See Index to Exhibits below.

EXHIBITS

Exhibit Number

Description

Transcript of conference call conducted by management of Peoples Bancorp Inc. on January 22, 2019 to discuss results of operations for the quarter and year period ended December 31, 2019

* Schedules and exhibits have been omitted to Item 601(b)(2) of Regulation S-K. A copy of any omitted schedules or exhibits will be furnished supplementally to the SEC upon its request.

PEOPLES BANCORP INC Exhibit
EX-99.1 2 q42018confcall.htm EXHIBIT 99.1 Exhibit Filed by Peoples Bancorp Inc.Pursuant to Rule 425 under the Securities Act of 1933and deemed filed pursuant to Rule 14a-12under the Securities Exchange Act of 1934Issuing Company: Peoples Bancorp Inc.Registration Statement on Form S-4 File No. 333-228745Subject Company: First Prestonsburg Bancshares Inc.PEBO – Peoples Bancorp Inc.Peoples Bancorp Inc. Reports Fourth Quarter ResultsTuesday,…
To view the full exhibit click here

About PEOPLES BANCORP INC. (NASDAQ:PEBO)

Peoples Bancorp Inc. is a financial holding company. The Company is engaged in banking, investment, insurance and trust solutions. The Company operates principally through its subsidiary, Peoples Bank, National Association (Peoples Bank). The Company’s products and services include demand deposit accounts, savings accounts, money market accounts and certificates of deposit. It also offers commercial, consumer and real estate mortgage loans for both commercial and residential purposes, and lines of credit. The Company also offers corporate and personal trust services, safe deposit rental facilities, money orders and cashier’s checks. The Company also offers life, health, property, and casualty insurance, as well as fiduciary, employee benefit plans and asset management services. Peoples Bank’s operating subsidiaries include Peoples Insurance Agency, LLC and over two asset management companies, PBNA, L.L.C. and Peoples Tax Credit Equity, L.L.C.

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