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): October 26, 2018 (October 23, 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 October 23, 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 nine months ended September 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
 
Nine Months Ended
 
September 30,
 
June 30,
 
September 30,
 
September 30,
(Dollars in thousands)
2018
 
2018
 
2017
 
2018
 
2017
 
 
 
 
 
 
 
 
 
 
Core Non-interest Expense:
 
 
 
 
 
 
 
 
 
Total non-interest expense
$
30,829

 
$
35,971

 
$
26,558

 
$
95,021

 
$
80,569

Less: Acquisition-related expenses
675

 
6,056

 

 
6,880

 

Less: Pension settlement charges
176

 

 

 
176

 

Core non-interest expense
$
29,978

 
$
29,915

 
$
26,558

 
$
87,965

 
$
80,569


 
Three Months Ended
 
Nine Months Ended
 
September 30,
 
June 30,
 
September 30,
 
September 30,
(Dollars in thousands)
2018
 
2018
 
2017
 
2018
 
2017
 
 
 
 
 
 
 
 
 
 
Efficiency Ratio:
 
 
 
 
 
 
 
 
 
Total non-interest expense
$
30,829

 
$
35,971

 
$
26,558

 
$
95,021

 
$
80,569

Less: amortization of intangible assets
862

 
861

 
869

 
2,477

 
2,603

Adjusted non-interest expense
$
29,967


$
35,110


$
25,689


$
92,544


$
77,966

 
 
 
 
 
 
 
 
 
 
Total non-interest income
$
14,353

 
$
13,255

 
$
14,446

 
42,577

 
41,834

Less: net (loss) net gain on investment securities

 
(147
)
 
1,861

 
(146
)
 
2,219

Less: net gain (loss) on asset disposals and other transactions
12

 
(405
)
 
(25
)
 
(319
)
 
81

Adjusted total non-interest income
$
14,341

 
$
13,807

 
$
12,610

 
$
43,042

 
$
39,534

 
 
 
 
 
 
 
 
 
 
Net interest income
$
33,324

 
$
32,808

 
$
29,220

 
$
95,491

 
$
84,255

Add: fully tax-equivalent adjustment (a)
221

 
223

 
460

 
670

 
1,471

Net interest income on a fully tax-equivalent basis
$
33,545

 
$
33,031

 
$
29,680

 
$
96,161

 
$
85,726

 
 
 
 
 
 
 
 
 
 
Adjusted revenue
$
47,886

 
$
46,838

 
$
42,290

 
$
139,203

 
$
125,260

 
 
 
 
 
 
 
 
 
 
Efficiency ratio
62.58
%
 
74.96
%
 
60.74
%
 
66.48
%
 
62.24
%
 
 
 
 
 
 
 
 
 
 
Efficiency Ratio Adjusted for Non-core Items:
 
 
 
 
 
 
 
 
Core non-interest expense
$
29,978

 
$
29,915

 
$
26,558

 
$
87,965

 
$
80,569

Less: amortization of intangible assets
862

 
861

 
869

 
2,477

 
2,603

Adjusted core non-interest expense
$
29,116

 
$
29,054

 
$
25,689

 
$
85,488


$
77,966

 
 
 
 
 
 
 
 
 
 
Adjusted revenue
$
47,886

 
$
46,838

 
$
42,290

 
$
139,203

 
$
125,260

 
 
 
 
 
 
 
 
 
 
Efficiency ratio adjusted for non-core items
60.80
%
 
62.03
%
 
60.74
%
 
61.41
%
 
62.24
%
(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.






 
September 30,
 
June 30,
 
March 31,
 
December 31,
 
September 30,
(Dollars in thousands)
2018
 
2018
 
2018
 
2017
 
2017
 
 
 
 
 
 
 
 
 
 
Tangible Equity:
 
 
 
 
 
 
 
 
 
Total stockholders' equity
$
504,290

 
$
499,339

 
$
456,815

 
$
458,592

 
$
457,386

Less: goodwill and other intangible assets
163,401

 
163,953

 
143,820

 
144,576

 
143,859

Tangible equity
$
340,889

 
$
335,386

 
$
312,995

 
$
314,016

 
$
313,527

 
 
 
 
 
 
 
 
 
 
Tangible Assets:
 
 
 
 
 
 
 
 
 
Total assets
$
4,003,089

 
$
3,972,091

 
$
3,634,929

 
$
3,581,686

 
$
3,552,412

Less: goodwill and other intangible assets
163,401

 
163,953

 
143,820

 
144,576

 
143,859

Tangible assets
$
3,839,688

 
$
3,808,138

 
$
3,491,109

 
$
3,437,110

 
$
3,408,553

 
 
 
 
 
 
 
 
 
 
Tangible Book Value per Common Share:
 
 
 
 
 
 
 
 
 
Tangible equity
$
340,889

 
$
335,386

 
$
312,995

 
$
314,016

 
$
313,527

Common shares outstanding
19,550,014

 
19,528,952

 
18,365,035

 
18,287,449

 
18,281,194

 
 
 
 
 
 
 
 
 
 
Tangible book value per common share
$
17.44

 
$
17.17

 
$
17.04

 
$
17.17

 
$
17.15

 
 
 
 
 
 
 
 
 
 
Tangible Equity to Tangible Assets Ratio:
 
 
 
 
Tangible equity
$
340,889

 
$
335,386

 
$
312,995

 
$
314,016

 
$
313,527

Tangible assets
$
3,839,688

 
$
3,808,138

 
$
3,491,109

 
$
3,437,110

 
$
3,408,553

 
 
 
 
 
 
 
 
 
 
Tangible equity to tangible assets
8.88
%
 
8.81
%
 
8.97
%
 
9.14
%
 
9.20
%

 
Three Months Ended
 
Nine Months Ended
 
September 30,
 
June 30,
 
September 30,
 
September 30,
(Dollars in thousands)
2018
 
2018
 
2017
 
2018
 
2017
 
 
 
 
 
 
 
 
 
 
Pre-Provision Net Revenue:
 
 
 
 
 
 
 
 
 
Income before income taxes
$
15,546

 
$
8,904

 
$
16,022

 
$
38,574

 
$
42,863

Add: provision for loan losses
1,302

 
1,188

 
1,086

 
4,473

 
2,657

Add: loss on debt extinguishment

 
13

 

 
13

 

Add: net loss on OREO

 

 

 

 
24

Add: net loss on investment securities

 
147

 

 
146

 

Add: net loss on other assets

 
330

 

 
239

 

Add: net loss on other transactions

 
76

 
38

 
76

 
41

Less: net gain on OREO

 
14

 
13

 
9

 
13

Less: net gain on investment securities

 

 
1,861

 

 
2,219

Less: net gain on other assets
12

 

 

 

 
133

Pre-provision net revenue
$
16,836

 
$
10,644

 
$
15,272

 
$
43,512

 
$
43,220

 
 
 
 
 
 
 
 
 
 
Pre-provision net revenue
$
16,836

 
$
10,644

 
$
15,272

 
$
43,512

 
$
43,220

Total average assets
$
3,998,254

 
$
3,897,957

 
$
3,541,220

 
$
3,832,554

 
$
3,492,772

 
 
 
 
 
 
 
 
 
 
Pre-provision net revenue to total average assets (annualized)
1.67
%
 
1.10
%
 
1.71
%
 
1.52
%
 
1.65
%






 
At or For the Three Months Ended
 
At or For the Nine Months Ended
 
September 30,
 
June 30,
 
September 30,
 
September 30,
(Dollars in thousands)
2018
 
2018
 
2017
 
2018
 
2017
 
 
 
 
 
 
 
 
 
 
Annualized Net Income Excluding Amortization of Other Intangible Assets:
 
 
 
 
Net income
$
12,725

 
$
7,892

 
$
10,895

 
$
32,358

 
$
29,470

Add: amortization of other intangible assets
862

 
861

 
869

 
2,477

 
2,603

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

 
181

 
304

 
520

 
911

Net income excluding amortization of other intangible assets
$
13,406

 
$
8,572

 
$
11,460

 
$
34,315

 
$
31,162

 
 
 
 
 
 
 
 
 
 
Days in the period
92

 
91

 
92

 
273

 
273

Days in the year
365

 
365

 
365

 
365

 
365

Annualized net income
$
50,485

 
$
31,655

 
$
43,225

 
$
43,263

 
$
39,401

Annualized net income excluding amortization of other intangible assets
$
53,187

 
$
34,382

 
$
45,466

 
$
45,879

 
$
41,663

 
 
 
 
 
 
 
 
 
 
Average Tangible Stockholders' Equity:
 
 
 
 
Total average stockholders' equity
$
501,785

 
$
489,876

 
$
456,198

 
$
482,138

 
$
447,592

Less: average goodwill and other intangible assets
163,615

 
161,600

 
144,267

 
156,540

 
144,950

Average tangible stockholders' equity
$
338,170

 
$
328,276

 
$
311,931

 
$
325,598

 
$
302,642

 
 
 
 
 
 
 
 
 
 
Return on Average Stockholders' Equity Ratio:
 
 
 
 
 
Annualized net income
$
50,485

 
$
31,655

 
$
43,225

 
$
43,263

 
$
39,401

Average stockholders' equity
$
501,785

 
$
489,876

 
$
456,198

 
$
482,138

 
$
447,592

 
 
 
 
 
 
 
 
 
 
Return on average stockholders' equity
10.06
%
 
6.46
%
 
9.48
%
 
8.97
%
 
8.80
%
 
 
 
 
 
 
Return on Average Tangible Stockholders' Equity Ratio:
 
 
 
 
 
Annualized net income excluding amortization of other intangible assets
$
53,187

 
$
34,382

 
$
45,466

 
$
45,879

 
$
41,663

Average tangible stockholders' equity
$
338,170

 
$
328,276

 
$
311,931

 
$
325,598

 
$
302,642

 
 
 
 
 
 
 
 
 
 
Return on average tangible stockholders' equity
15.73
%
 
10.47
%
 
14.58
%
 
14.09
%
 
13.77
%
(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 October 23, 2018 to discuss results of operations for the quarter and year period ended September 30, 2018
 






* 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:
October 26, 2018
By:/s/
JOHN C. ROGERS
 
 
 
 
John C. Rogers
 
 
 
 
 
 
 
 
 
Executive Vice President,
Chief Financial Officer and Treasurer