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): April 27, 2018 (April 24, 2018)

pebonewlogoa05.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))
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐





Item 2.02     Results of Operations and Financial Condition

On April 24, 2018, management of Peoples Bancorp Inc. (“Peoples”) conducted a facilitated conference call at approximately 11:00 a.m., Eastern Daylight Time, to discuss results of operations for the three months ended March 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 to this Current Report on Form 8-K.

The information contained in this Item 2.02 and Exhibit 99 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
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
 
March 31,
 
December 31,
 
March 31,
(in $000’s)
2018
 
2017
 
2017
 
 
 
 
 
 
Core Non-interest Expense:
 
 
 
 
 
Total non-interest expense
$
28,221

 
$
27,406

 
$
27,331

Less: Acquisition-related costs
149

 
341

 

Less: Pension settlement charges

 
242

 

Core non-interest expense
$
28,072

 
$
26,823

 
$
27,331







 
Three Months Ended
 
March 31,
 
December 31,
 
March 31,
(in $000’s)
2018
 
2017
 
2017
 
 
 
 
 
 
Efficiency Ratio:
 
 
 
 
 
Total non-interest expense
$
28,221

 
$
27,406

 
$
27,331

Less: Amortization of intangible assets
754

 
913

 
863

Adjusted non-interest expense
$
27,467


$
26,493


$
26,468

 
 
 
 
 
 
Total fee-based income
$
14,894

 
$
13,119

 
$
13,334

 
 
 
 
 
 
Net interest income
$
29,359

 
$
29,122

 
$
26,945

Add: Fully tax-equivalent adjustment (a)
227

 
440

 
513

Net interest income on a fully tax-equivalent basis
$
29,586

 
$
29,562

 
$
27,458

 
 
 
 
 
 
Adjusted revenue
$
44,480

 
$
42,681

 
$
40,792

 
 
 
 
 
 
Efficiency ratio
61.75
%
 
62.07
%
 
64.89
%
 
 
 
 
 
 
Efficiency Ratio Adjusted for Non-core Items:
 
 
 
 
Core non-interest expense
$
28,072

 
$
26,823

 
$
27,331

Less: Amortization of intangible assets
754

 
913

 
863

Adjusted core non-interest expense
$
27,318

 
$
25,910

 
$
26,468

 
 
 
 
 
 
Adjusted revenue
$
44,480

 
$
42,681

 
$
40,792

 
 
 
 
 
 
Efficiency ratio adjusted for non-core items
61.42
%
 
60.71
%
 
64.89
%
(a) Based on a 21% federal statutory corporate income tax rate for the three months ended March 31, 2018, and a 35%
federal statutory corporate income tax rate for the three months ended December 31, 2017 and March 31, 2017.

 
At or For the Three Months Ended
 
March 31,
 
December 31,
 
September 30,
 
June 30,
 
March 30,
(in $000’s)
2018
 
2017
 
2017
 
2017
 
2017
 
 
 
 
 
 
 
 
 
 
Tangible Equity:
 
 
 
 
 
 
 
 
 
Total stockholders' equity
$
456,815

 
$
458,592

 
$
457,386

 
$
451,353

 
$
443,009

Less: goodwill and other intangible assets
143,820

 
144,576

 
143,859

 
144,692

 
145,505

Tangible equity
$
312,995

 
$
314,016

 
$
313,527

 
$
306,661

 
$
297,504

 
 
 
 
 
 
 
 
 
 
Tangible Assets:
 
 
 
 
 
 
 
 
 
Total assets
$
3,634,929

 
$
3,581,686

 
$
3,552,412

 
$
3,525,126

 
$
3,459,276

Less: goodwill and other intangible assets
143,820

 
144,576

 
143,859

 
144,692

 
145,505

Tangible assets
$
3,491,109

 
$
3,437,110

 
$
3,408,553

 
$
3,380,434

 
$
3,313,771

 
 
 
 
 
 
 
 
 
 
Tangible Book Value per Common Share:
 
 
 
 
 
 
 
 
 
Tangible equity
$
312,995

 
$
314,016

 
$
313,527

 
$
306,661

 
$
297,504

Common shares outstanding
18,365,035

 
18,287,449

 
18,281,194

 
18,279,036

 
18,270,508

 
 
 
 
 
 
 
 
 
 
Tangible book value per common share
$
17.04

 
$
17.17

 
$
17.15

 
$
16.78

 
$
16.28

 
 
 
 
 
 
 
 
 
 
Tangible Equity to Tangible Assets Ratio:
 
 
 
 
Tangible equity
$
312,995

 
$
314,016

 
$
313,527

 
$
306,661

 
$
297,504

Tangible assets
$
3,491,109

 
$
3,437,110

 
$
3,408,553

 
$
3,380,434

 
$
3,313,771

 
 
 
 
 
 
 
 
 
 
Tangible equity to tangible assets
8.97
%
 
9.14
%
 
9.20
%
 
9.07
%
 
8.98
%






 
Three Months Ended
 
March 31,
 
December 31,
 
March 31,
(in $000’s)
2018
 
2017
 
2017
 
 
 
 
 
 
Pre-Provision Net Revenue:
 
 
 
 
 
Income before income taxes
$
14,124

 
$
14,340

 
$
12,661

Add: provision for loan losses
1,983

 
1,115

 
624

Add: net loss on OREO
5

 
105

 

Add: net loss on other assets

 
39

 
3

Less: net gain on investment securities
1

 
764

 
340

Less: net gain on other assets
79

 

 

Pre-provision net revenue
$
16,032

 
$
14,835

 
$
12,948

 
 
 
 
 
 
Pre-provision net revenue
$
16,032

 
$
14,835

 
$
12,948

Total average assets
$
3,597,043

 
$
3,562,243

 
$
3,446,351

 
 
 
 
 
 
Pre-provision net revenue to total average assets (annualized)
1.81
%
 
1.65
%
 
1.52
%

 
At or For the Three Months Ended
 
March 31,
 
December 31,
 
March 31,
(in $000’s)
2018
 
2017
 
2017
 
 
 
 
 
 
Annualized Net Income Excluding Amortization of Other Intangible Assets:
Net income
$
11,741

 
$
9,001

 
$
8,809

Add: amortization of other intangible assets
754

 
913

 
863

Less: tax effect (a) of amortization of other intangible assets
158

 
320

 
302

Net income excluding amortization of other intangible assets
$
12,337

 
$
9,594

 
$
9,370

 
 
 
 
 
 
Days in the period
90

 
92

 
90

Days in the year
365

 
365

 
365

Annualized net income
$
47,616

 
$
35,710

 
$
35,725

Annualized net income excluding amortization of other intangible assets
$
50,033

 
$
38,063

 
$
38,001

 
 
 
 
 
 
Average Tangible Stockholders' Equity:
Total average stockholders' equity
$
454,232

 
$
458,648

 
$
438,990

Less: average goodwill and other intangible assets
144,190

 
143,942

 
145,546

Average tangible stockholders' equity
$
310,042

 
$
314,706

 
$
293,444

 
 
 
 
 
 
Return on Average Stockholders' Equity Ratio:
 
Annualized net income
$
47,616

 
$
35,710

 
$
35,725

Average stockholders' equity
$
454,232

 
$
458,648

 
$
438,990

 
 
 
 
 
 
Return on average stockholders' equity
10.48
%
 
7.79
%
 
8.14
%
 
 
Return on Average Tangible Stockholders' Equity Ratio:
 
Annualized net income excluding amortization of other intangible assets
$
50,033

 
$
38,063

 
$
38,001

Average tangible stockholders' equity
$
310,042

 
$
314,706

 
$
293,444

 
 
 
 
 
 
Return on average tangible stockholders' equity
16.14
%
 
12.09
%
 
12.95
%

(a) Tax effect is calculated using a 21% federal statutory corporate income tax rate for the three months ended March 31, 2018,
and a 35% federal statutory corporate income tax rate for the three months ended December 31, 2017 and March 31, 2017.





 
Item 9.01     Financial Statements and Exhibits

a) - c)
Not applicable.

d) Exhibits
See Index to Exhibits below.







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:
April 27, 2018
By:/s/
JOHN C. ROGERS
 
 
 
 
John C. Rogers
 
 
 
 
 
 
 
 
 
Executive Vice President, Chief Financial Officer and Treasurer
 


INDEX TO EXHIBITS
Exhibit Number
 
Description
 
Transcript of conference call conducted by management of Peoples Bancorp Inc. on April 24, 2018 to discuss results of operations for the three and twelve months ended March 31, 2018.