Document


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): July 27, 2018 (July 24, 2018)

pebonewlogo.jpg
 
PEOPLES BANCORP INC.
 
 
(Exact name of Registrant as specified in its charter)
 

Ohio
 
0-16772
 
31-0987416
(State or other jurisdiction
 
(Commission File
 
(I.R.S. Employer
of incorporation)
 
Number)
 
Identification Number)

 
138 Putnam Street, PO Box 738
 
 
 
 
Marietta, Ohio
 
45750-0738
 
 
(Address of principal executive offices)
 
(Zip Code)
 

 
Registrant's telephone number, including area code:
 
(740) 373-3155
 

 
Not applicable
 
 
(Former name or former address, if changed since last report)
 


Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 
o
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
 
 
 
o
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
 
 
 
o
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act
 
 
(17 CFR 240.14d-2(b))
 
 
 
 
o
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act
 
 
(17 CFR 240.13e-4(c))









Item 2.02     Results of Operations and Financial Condition

On July 24, 2018, management of Peoples Bancorp Inc. (“Peoples”) conducted a facilitated conference call at approximately 11:00 a.m., Eastern Daylight Saving Time, to discuss results of operations for the quarter and six months ended June 30, 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 pursuant 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
 
Six Months Ended
 
June 30,
 
March 31,
 
June 30,
 
June 30,
(Dollars in thousands)
2018
 
2018
 
2017
 
2018
 
2017
 
 
 
 
 
 
 
 
 
 
Core Non-interest Expense:
 
 
 
 
 
 
 
 
 
Total non-interest expense
$
35,971

 
$
28,221

 
$
26,680

 
$
64,192

 
$
54,011

Less: Acquisition-related expenses
6,056

 
149

 

 
6,205

 

Core non-interest expense
$
29,915

 
$
28,072

 
$
26,680

 
$
57,987

 
$
54,011


 
Three Months Ended
 
Six Months Ended
 
June 30,
 
March 31,
 
June 30,
 
June 30,
(Dollars in thousands)
2018
 
2018
 
2017
 
2018
 
2017
 
 
 
 
 
 
 
 
 
 
Efficiency Ratio:
 
 
 
 
 
 
 
 
 
Total non-interest expense
$
35,971

 
$
28,221

 
$
26,680

 
$
64,192

 
$
54,011

Less: Amortization of intangible assets
861

 
754

 
871

 
1,615

 
1,734

Adjusted non-interest expense
$
35,110


$
27,467


$
25,809


$
62,577


$
52,277

 
 
 
 
 
 
 
 
 
 
Total fee-based income
$
13,807

 
$
14,894

 
$
13,590

 
28,701

 
26,924

 
 
 
 
 
 
 
 
 
 
Net interest income
$
32,808

 
$
29,359

 
$
28,090

 
$
62,167

 
$
55,035

Add: Fully tax-equivalent adjustment (a)
223

 
227

 
496

 
450

 
1,009

Net interest income on a fully tax-equivalent basis
$
33,031

 
$
29,586

 
$
28,586

 
$
62,617

 
$
56,044

 
 
 
 
 
 
 
 
 
 
Adjusted revenue
$
46,838

 
$
44,480

 
$
42,176

 
$
91,318

 
$
82,968

 
 
 
 
 
 
 
 
 
 
Efficiency ratio
74.96
%
 
61.75
%
 
61.19
%
 
68.53
%
 
63.01
%
 
 
 
 
 
 
 
 
 
 
Efficiency Ratio Adjusted for Non-core Items:
 
 
 
 
 
 
 
 
Core non-interest expense
$
29,915

 
$
28,072

 
$
26,680

 
$
57,987

 
$
54,011

Less: Amortization of intangible assets
861

 
754

 
871

 
1,615

 
1,734

Adjusted core non-interest expense
$
29,054

 
$
27,318

 
$
25,809

 
$
56,372


$
52,277

 
 
 
 
 
 
 
 
 
 
Adjusted revenue
$
46,838

 
$
44,480

 
$
42,176

 
$
91,318

 
$
82,968

 
 
 
 
 
 
 
 
 
 
Efficiency ratio adjusted for non-core items
62.03
%
 
61.42
%
 
61.19
%
 
61.73
%
 
63.01
%
(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.






 
June 30,
 
March 31,
 
December 31,
 
September 30,
 
June 30,
(Dollars in thousands)
2018
 
2018
 
2017
 
2017
 
2017
 
 
 
 
 
 
 
 
 
 
Tangible Equity:
 
 
 
 
 
 
 
 
 
Total stockholders' equity
$
499,339

 
$
456,815

 
$
458,592

 
$
457,386

 
$
451,353

Less: goodwill and other intangible assets
163,953

 
143,820

 
144,576

 
143,859

 
144,692

Tangible equity
$
335,386

 
$
312,995

 
$
314,016

 
$
313,527

 
$
306,661

 
 
 
 
 
 
 
 
 
 
Tangible Assets:
 
 
 
 
 
 
 
 
 
Total assets
$
3,972,091

 
$
3,634,929

 
$
3,581,686

 
$
3,552,412

 
$
3,525,126

Less: goodwill and other intangible assets
163,953

 
143,820

 
144,576

 
143,859

 
144,692

Tangible assets
$
3,808,138

 
$
3,491,109

 
$
3,437,110

 
$
3,408,553

 
$
3,380,434

 
 
 
 
 
 
 
 
 
 
Tangible Book Value per Common Share:
 
 
 
 
 
 
 
 
 
Tangible equity
$
335,386

 
$
312,995

 
$
314,016

 
$
313,527

 
$
306,661

Common shares outstanding
19,528,952

 
18,365,035

 
18,287,449

 
18,281,194

 
18,279,036

 
 
 
 
 
 
 
 
 
 
Tangible book value per common share
$
17.17

 
$
17.04

 
$
17.17

 
$
17.15

 
$
16.78

 
 
 
 
 
 
 
 
 
 
Tangible Equity to Tangible Assets Ratio:
 
 
 
 
Tangible equity
$
335,386

 
$
312,995

 
$
314,016

 
$
313,527

 
$
306,661

Tangible assets
$
3,808,138

 
$
3,491,109

 
$
3,437,110

 
$
3,408,553

 
$
3,380,434

 
 
 
 
 
 
 
 
 
 
Tangible equity to tangible assets
8.81
%
 
8.97
%
 
9.14
%
 
9.20
%
 
9.07
%

 
Three Months Ended
 
Six Months Ended
 
June 30,
 
March 31,
 
June 30,
 
June 30,
(Dollars in thousands)
2018
 
2018
 
2017
 
2018
 
2017
 
 
 
 
 
 
 
 
 
 
Pre-Provision Net Revenue:
 
 
 
 
 
 
 
 
 
Income before income taxes
$
8,904

 
$
14,124

 
$
14,180

 
$
23,028

 
$
26,841

Add: provision for loan losses
1,188

 
1,983

 
947

 
3,171

 
1,571

Add: loss on debt extinguishment
13

 

 

 
13

 

Add: net loss on OREO

 
5

 
24

 

 
24

Add: net loss on investment securities
147

 

 

 
146

 

Add: net loss on other assets
330

 

 

 
251

 

Add: net loss on other transactions
76

 

 

 
76

 

Less: net gain on OREO
14

 

 

 
9

 

Less: net gain on investment securities

 
1

 
18

 

 
358

Less: net gain on other assets

 
79

 
133

 

 
130

Pre-provision net revenue
$
10,644

 
$
16,032

 
$
15,000

 
$
26,676

 
$
27,948

 
 
 
 
 
 
 
 
 
 
Pre-provision net revenue
$
10,644

 
$
16,032

 
$
15,000

 
$
26,676

 
$
27,948

Total average assets
$
3,897,957

 
$
3,597,043

 
$
3,489,701

 
$
3,748,331

 
$
3,468,146

 
 
 
 
 
 
 
 
 
 
Pre-provision net revenue to total average assets (annualized)
1.10
%
 
1.81
%
 
1.72
%
 
1.44
%
 
1.63
%






 
At or For the Three Months Ended
 
For the Six Months Ended
 
June 30,
 
March 31,
 
June 30,
 
June 30,
(Dollars in thousands)
2018
 
2018
 
2017
 
2018
 
2017
 
 
 
 
 
 
 
 
 
 
Annualized Net Income Excluding Amortization of Other Intangible Assets:
 
 
 
 
Net income
$
7,892

 
$
11,741

 
$
9,766

 
$
19,633

 
$
18,575

Add: amortization of other intangible assets
861

 
754

 
871

 
1,615

 
1,734

Less: tax effect (a) of amortization of other intangible assets
181

 
158

 
305

 
339

 
607

Net income excluding amortization of other intangible assets
$
8,572

 
$
12,337

 
$
10,332

 
$
20,909

 
$
19,702

 
 
 
 
 
 
 
 
 
 
Days in the period
91

 
90

 
91

 
181

 
181

Days in the year
365

 
365

 
365

 
365

 
365

Annualized net income
$
31,655

 
$
47,616

 
$
39,171

 
$
39,591

 
$
37,458

Annualized net income excluding amortization of other intangible assets
$
34,382

 
$
50,033

 
$
41,442

 
$
42,165

 
$
39,731

 
 
 
 
 
 
 
 
 
 
Average Tangible Stockholders' Equity:
 
 
 
 
Total average stockholders' equity
$
489,876

 
$
454,232

 
$
447,399

 
$
472,152

 
$
443,218

Less: average goodwill and other intangible assets
161,600

 
144,190

 
145,052

 
152,943

 
145,298

Average tangible stockholders' equity
$
328,276

 
$
310,042

 
$
302,347

 
$
319,209

 
$
297,920

 
 
 
 
 
 
 
 
 
 
Return on Average Stockholders' Equity Ratio:
 
 
 
 
 
Annualized net income
$
31,655

 
$
47,616

 
$
39,171

 
$
39,591

 
$
37,458

Average stockholders' equity
$
489,876

 
$
454,232

 
$
447,399

 
$
472,152

 
$
443,218

 
 
 
 
 
 
 
 
 
 
Return on average stockholders' equity
6.46
%
 
10.48
%
 
8.76
%
 
8.39
%
 
8.45
%
 
 
 
 
 
 
Return on Average Tangible Stockholders' Equity Ratio:
 
 
 
 
 
Annualized net income excluding amortization of other intangible assets
$
34,382

 
$
50,033

 
$
41,442

 
$
42,165

 
$
39,731

Average tangible stockholders' equity
$
328,276

 
$
310,042

 
$
302,347

 
$
319,209

 
$
297,920

 
 
 
 
 
 
 
 
 
 
Return on average tangible stockholders' equity
10.47
%
 
16.14
%
 
13.71
%
 
13.21
%
 
13.34
%
(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 7.01    Regulation FD Disclosure

From time-to-time between July 30, 2018 and September 30, 2018, the management team of Peoples Bancorp Inc. ("Peoples"), including the Executive Vice President, Chief Financial Officer and Treasurer, and the Executive Vice President, Chief Commercial Banking Officer, intend to conduct one or more meetings with investors and analysts. These individuals intend to use an investor presentation containing financial data and other information regarding Peoples to assist the investors and analysts with their understanding of the business and financial performance of Peoples. A copy of the investor presentation is included as Exhibit 99.2 to this Current Report on Form 8-K and is incorporated herein by reference.

Within the investor presentation, Peoples updated one of the expectations for the third and fourth quarter of 2018, which were previously disclosed in the July 24, 2018 conference call held to announce second quarter 2018 earnings. Quarterly fee-based revenue is expected to be between $13.5 and $14.5 million per quarter for the third and fourth quarter of 2018, instead of the previously disclosed amount of $13 to $14 million.

The information in this Current Report on Form 8-K is being furnished under Item 7.01 and shall not be deemed "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934 (the "Exchange Act"), or otherwise subject to the liabilities of such section, nor shall such information be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

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 July 24, 2018 to discuss results of operations for the quarter and year period ended June 30, 2018
 
 
2nd Quarter 2018 Investor Presentation
 

* Schedules and exhibits have been omitted pursuant 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.








SIGNATURES


Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
                    

 
 
 
PEOPLES BANCORP INC.
 
 
 
 
 
 
Date:
July 27, 2018
By:/s/
JOHN C. ROGERS
 
 
 
 
John C. Rogers
 
 
 
 
 
 
 
 
 
Executive Vice President,
Chief Financial Officer and Treasurer