x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
PEOPLES BANCORP INC. | ||||||||
(Exact name of Registrant as specified in its charter) | ||||||||
Ohio | 31-0987416 | |||||||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |||||||
138 Putnam Street, P. O. Box 738, Marietta, Ohio | 45750 | |||||||
(Address of principal executive offices) | (Zip Code) | |||||||
Registrant’s telephone number, including area code: | (740) 373-3155 | |||||||
Not Applicable | ||||||||
(Former name, former address and former fiscal year, if changed since last report) |
Large accelerated filer o | Accelerated filer x | Non-accelerated filer o (Do not check if a smaller reporting company) | Smaller reporting company o |
Table of Contents | |||
March 31, 2012 | December 31, 2011 | |||||
(Dollars in thousands) | ||||||
Assets | ||||||
Cash and cash equivalents: | ||||||
Cash and due from banks | $ | 29,870 | $ | 32,346 | ||
Interest-bearing deposits in other banks | 8,085 | 6,604 | ||||
Total cash and cash equivalents | 37,955 | 38,950 | ||||
Available-for-sale investment securities, at fair value (amortized cost of $602,817 at March 31, 2012 and $617,128 at December 31, 2011) | 610,036 | 628,571 | ||||
Held-to-maturity investment securities, at amortized cost (fair value of $34,634 at March 31, 2012 and $16,705 at December 31, 2011) | 34,298 | 16,301 | ||||
Other investment securities, at cost | 24,356 | 24,356 | ||||
Total investment securities | 668,690 | 669,228 | ||||
Loans, net of deferred fees and costs | 944,103 | 938,506 | ||||
Allowance for loan losses | (21,249 | ) | (23,717 | ) | ||
Net loans | 922,854 | 914,789 | ||||
Loans held for sale | 5,167 | 3,271 | ||||
Bank premises and equipment, net | 23,863 | 23,905 | ||||
Bank owned life insurance | 49,392 | 49,384 | ||||
Goodwill | 62,520 | 62,520 | ||||
Other intangible assets | 1,909 | 1,955 | ||||
Other assets | 33,573 | 30,159 | ||||
Total assets | $ | 1,805,923 | $ | 1,794,161 | ||
Liabilities | ||||||
Deposits: | ||||||
Non-interest-bearing | $ | 268,444 | $ | 239,837 | ||
Interest-bearing | 1,130,105 | 1,111,243 | ||||
Total deposits | 1,398,549 | 1,351,080 | ||||
Short-term borrowings | 44,905 | 51,643 | ||||
Long-term borrowings | 106,652 | 142,312 | ||||
Junior subordinated notes held by subsidiary trust | 22,609 | 22,600 | ||||
Accrued expenses and other liabilities | 24,542 | 19,869 | ||||
Total liabilities | 1,597,257 | 1,587,504 | ||||
Stockholders’ Equity | ||||||
Preferred stock, no par value, 50,000 shares authorized, no shares issued at March 31, 2012 and December 31, 2011 | — | — | ||||
Common stock, no par value, 24,000,000 shares authorized, 11,129,412 shares issued at March 31, 2012 and 11,122,247 shares issued at December 31, 2011, including shares in treasury | 166,065 | 166,969 | ||||
Retained earnings | 59,065 | 53,580 | ||||
Accumulated other comprehensive (loss) income, net of deferred income taxes | (1,310 | ) | 1,412 | |||
Treasury stock, at cost, 607,864 shares at March 31, 2012 and 615,123 shares at December 31, 2011 | (15,154 | ) | (15,304 | ) | ||
Total stockholders’ equity | 208,666 | 206,657 | ||||
Total liabilities and stockholders’ equity | $ | 1,805,923 | $ | 1,794,161 |
Three Months Ended | ||||||
March 31, | ||||||
(Dollars in thousands, except per share data) | 2012 | 2011 | ||||
Interest Income: | ||||||
Interest and fees on loans | $ | 11,760 | $ | 12,678 | ||
Interest and dividends on taxable investment securities | 5,507 | 6,203 | ||||
Interest on tax-exempt investment securities | 341 | 425 | ||||
Other interest income | 4 | 11 | ||||
Total interest income | 17,612 | 19,317 | ||||
Interest Expense: | ||||||
Interest on deposits | 2,547 | 3,985 | ||||
Interest on short-term borrowings | 19 | 35 | ||||
Interest on long-term borrowings | 1,119 | 1,310 | ||||
Interest on junior subordinated notes held by subsidiary trust | 495 | 492 | ||||
Total interest expense | 4,180 | 5,822 | ||||
Net interest income | 13,432 | 13,495 | ||||
(Recovery of) provision for loan losses | (2,137 | ) | 5,311 | |||
Net interest income after (recovery of) provision for loan losses | 15,569 | 8,184 | ||||
Other Income: | ||||||
Deposit account service charges | 2,237 | 2,174 | ||||
Insurance income | 2,951 | 2,832 | ||||
Trust and investment income | 1,496 | 1,325 | ||||
Electronic banking income | 1,488 | 1,221 | ||||
Mortgage banking income | 549 | 374 | ||||
Bank owned life insurance | 8 | 87 | ||||
Net gain on investment securities | 3,163 | 360 | ||||
Net (loss) gain on asset disposals and other transactions | (3,062 | ) | 60 | |||
Other non-interest income | 353 | 361 | ||||
Total other income | 9,183 | 8,794 | ||||
Other Expenses: | ||||||
Salaries and employee benefit costs | 8,245 | 7,627 | ||||
Net occupancy and equipment | 1,432 | 1,501 | ||||
Professional fees | 813 | 795 | ||||
Electronic banking expense | 694 | 618 | ||||
Data processing and software | 487 | 463 | ||||
Franchise tax | 412 | 401 | ||||
Communication expense | 348 | 314 | ||||
FDIC insurance | 309 | 662 | ||||
Foreclosed real estate and other loan expenses | 221 | 350 | ||||
Amortization of other intangible assets | 107 | 162 | ||||
Other non-interest expense | 1,948 | 1,725 | ||||
Total other expenses | 15,016 | 14,618 | ||||
Income before income taxes | 9,736 | 2,360 | ||||
Income tax expense | (3,079 | ) | (491 | ) | ||
Net income | $ | 6,657 | $ | 1,869 | ||
Preferred dividends | — | (523 | ) | |||
Net income available to common shareholders | $ | 6,657 | $ | 1,346 | ||
Earnings per common share - basic | $ | 0.63 | $ | 0.13 | ||
Earnings per common share - diluted | $ | 0.63 | $ | 0.13 | ||
Weighted-average number of common shares outstanding - basic | 10,513,388 | 10,471,819 | ||||
Weighted-average number of common shares outstanding - diluted | 10,513,388 | 10,477,360 | ||||
Cash dividends declared on common shares | $ | 1,172 | $ | 1,058 | ||
Cash dividends declared per common share | $ | 0.11 | $ | 0.10 |
Three Months Ended | ||||||
March 31, | ||||||
(Dollars in thousands) | 2012 | 2011 | ||||
Net income | $ | 6,657 | $ | 1,869 | ||
Other comprehensive income (loss): | ||||||
Available-for-sale investment securities: | ||||||
Gross unrealized holding (loss) gain arising in the period | (1,063 | ) | 419 | |||
Related tax benefit (expense) | 372 | (147 | ) | |||
Less: reclassification adjustment for net gain included in net income | 3,163 | 360 | ||||
Related tax expense | (1,107 | ) | (126 | ) | ||
Net effect on other comprehensive (loss) income | (2,747 | ) | 38 | |||
Defined benefit plans: | ||||||
Amortization of unrecognized loss and service cost on pension plan | 38 | 38 | ||||
Related tax expense | (13 | ) | (13 | ) | ||
Net effect on other comprehensive income | 25 | 25 | ||||
Total other comprehensive (loss) income, net of tax | (2,722 | ) | 63 | |||
Total comprehensive income | $ | 3,935 | $ | 1,932 |
Accumulated Other | Total | |||||||||||||||||
Preferred | Common | Retained | Comprehensive | Treasury | Stockholders' | |||||||||||||
(Dollars in thousands) | Stock | Stock | Earnings | Income (Loss) | Stock | Equity | ||||||||||||
Balance, December 31, 2011 | $ | — | $ | 166,969 | $ | 53,580 | $ | 1,412 | $ | (15,304 | ) | $ | 206,657 | |||||
Net income | 6,657 | 6,657 | ||||||||||||||||
Other comprehensive loss, net of tax | (2,722 | ) | (2,722 | ) | ||||||||||||||
Repurchase of common stock warrant | (1,201 | ) | (1,201 | ) | ||||||||||||||
Common stock cash dividends declared | (1,172 | ) | (1,172 | ) | ||||||||||||||
Reissuance of treasury stock for deferred compensation plan | 137 | 137 | ||||||||||||||||
Purchase of treasury stock | (34 | ) | (34 | ) | ||||||||||||||
Common shares issued under dividend reinvestment plan | 89 | 89 | ||||||||||||||||
Common shares issued under Board of Directors' compensation plan | (18 | ) | 47 | 29 | ||||||||||||||
Stock-based compensation expense | 226 | 226 | ||||||||||||||||
Balance, March 31, 2012 | $ | — | $ | 166,065 | $ | 59,065 | $ | (1,310 | ) | $ | (15,154 | ) | $ | 208,666 |
Three Months Ended | ||||||
March 31, | ||||||
(Dollars in thousands) | 2012 | 2011 | ||||
Net cash provided by operating activities | $ | 8,433 | $ | 13,317 | ||
Investing activities: | ||||||
Available-for-sale investment securities: | ||||||
Purchases | (83,594 | ) | (80,103 | ) | ||
Proceeds from sales | 63,651 | 26,879 | ||||
Proceeds from principle payments, calls and prepayments | 34,069 | 32,290 | ||||
Held-to-maturity investment securities: | ||||||
Purchases | (18,348 | ) | — | |||
Proceeds from principle payments | 309 | — | ||||
Net (increase) decrease in loans | (5,869 | ) | 5,112 | |||
Net expenditures for premises and equipment | (645 | ) | (437 | ) | ||
Proceeds from sales of other real estate owned | 1,381 | 152 | ||||
Net cash used in investing activities | (9,046 | ) | (16,107 | ) | ||
Financing activities: | ||||||
Net increase in non-interest-bearing deposits | 28,607 | 4,106 | ||||
Net increase (decrease) in interest-bearing deposits | 18,839 | (4,785 | ) | |||
Net decrease in short-term borrowings | (6,738 | ) | (9,226 | ) | ||
Payments on long-term borrowings | (38,771 | ) | (5,795 | ) | ||
Repurchase of preferred shares and common stock warrant | (1,201 | ) | (21,000 | ) | ||
Preferred stock dividends | — | (449 | ) | |||
Cash dividends paid on common shares | (1,086 | ) | (980 | ) | ||
Purchase of treasury stock | (34 | ) | (38 | ) | ||
Proceeds from issuance of common shares | 2 | — | ||||
Net cash used in financing activities | (382 | ) | (38,167 | ) | ||
Net decrease in cash and cash equivalents | (995 | ) | (40,957 | ) | ||
Cash and cash equivalents at beginning of period | 38,950 | 74,644 | ||||
Cash and cash equivalents at end of period | $ | 37,955 | $ | 33,687 |
Fair Value Measurements at Reporting Date Using | ||||||||||||
(Dollars in thousands) | Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | |||||||||
Fair Value | (Level 1) | (Level 2) | (Level 3) | |||||||||
March 31, 2012 | ||||||||||||
Obligations of: | ||||||||||||
U.S. Treasury and government agencies | $ | 31 | $ | — | $ | 31 | $ | — | ||||
U.S. government sponsored agencies | 702 | — | 702 | — | ||||||||
States and political subdivisions | 34,175 | — | 34,175 | — | ||||||||
Residential mortgage-backed securities | 522,659 | — | 522,659 | — | ||||||||
Commercial mortgage-backed securities | 36,230 | — | 36,230 | — | ||||||||
Bank-issued trust preferred securities | 12,901 | — | 12,901 | — | ||||||||
Equity securities | 3,338 | 3,213 | 125 | — | ||||||||
Total available-for-sale securities | $ | 610,036 | $ | 3,213 | $ | 606,823 | $ | — | ||||
December 31, 2011 | ||||||||||||
Obligations of: | ||||||||||||
U.S. Treasury and government agencies | $ | 32 | $ | — | $ | 32 | $ | — | ||||
U.S. government sponsored agencies | 13,037 | — | 13,037 | — | ||||||||
States and political subdivisions | 35,745 | — | 35,745 | — | ||||||||
Residential mortgage-backed securities | 527,003 | — | 527,003 | — | ||||||||
Commercial mortgage-backed securities | 37,289 | — | 37,289 | — | ||||||||
Bank-issued trust preferred securities | 12,211 | — | 12,211 | — | ||||||||
Equity securities | 3,254 | 3,126 | 128 | — | ||||||||
Total available-for-sale securities | $ | 628,571 | $ | 3,126 | $ | 625,445 | $ | — |
March 31, 2012 | December 31, 2011 | ||||||||||||
(Dollars in thousands) | Carrying Amount | Fair Value | Carrying Amount | Fair Value | |||||||||
Financial assets: | |||||||||||||
Cash and cash equivalents | $ | 37,955 | $ | 37,955 | $ | 38,950 | $ | 38,950 | |||||
Investment securities | 668,690 | 669,026 | 669,228 | 669,632 | |||||||||
Loans | 928,021 | 839,057 | 918,060 | 828,477 | |||||||||
Financial liabilities: | |||||||||||||
Deposits | $ | 1,398,549 | $ | 1,411,404 | $ | 1,351,080 | $ | 1,363,742 | |||||
Short-term borrowings | 44,905 | 44,905 | 51,643 | 51,643 | |||||||||
Long-term borrowings | 106,652 | 118,689 | 142,312 | 157,553 | |||||||||
Junior subordinated notes held by subsidiary trust | 22,609 | 23,734 | 22,600 | 23,760 |
(Dollars in thousands) | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||
March 31, 2012 | ||||||||||||
Obligations of: | ||||||||||||
U.S. Treasury and government agencies | $ | 31 | $ | — | $ | — | $ | 31 | ||||
U.S. government sponsored agencies | 655 | 47 | — | 702 | ||||||||
States and political subdivisions | 31,164 | 3,011 | — | 34,175 | ||||||||
Residential mortgage-backed securities | 520,613 | 13,662 | (11,616 | ) | 522,659 | |||||||
Commercial mortgage-backed securities | 35,253 | 1,005 | (28 | ) | 36,230 | |||||||
Bank-issued trust preferred securities | 13,888 | 54 | (1,041 | ) | 12,901 | |||||||
Equity securities | 1,213 | 2,220 | (95 | ) | 3,338 | |||||||
Total available-for-sale securities | $ | 602,817 | $ | 19,999 | $ | (12,780 | ) | $ | 610,036 | |||
December 31, 2011 | ||||||||||||
Obligations of: | ||||||||||||
U.S. Treasury and government agencies | $ | 32 | $ | — | $ | — | $ | 32 | ||||
U.S. government sponsored agencies | 12,291 | 746 | — | 13,037 | ||||||||
States and political subdivisions | 32,763 | 2,982 | — | 35,745 | ||||||||
Residential mortgage-backed securities | 521,231 | 15,607 | (9,835 | ) | 527,003 | |||||||
Commercial mortgage-backed securities | 35,712 | 1,577 | — | 37,289 | ||||||||
Bank-issued trust preferred securities | 13,886 | 12 | (1,687 | ) | 12,211 | |||||||
Equity securities | 1,213 | 2,134 | (93 | ) | 3,254 | |||||||
Total available-for-sale securities | $ | 617,128 | $ | 23,058 | $ | (11,615 | ) | $ | 628,571 |
Three Months Ended | ||||||
March 31, | ||||||
(Dollars in thousands) | 2012 | 2011 | ||||
Gross gains realized | $ | 3,272 | $ | 442 | ||
Gross losses realized | 109 | 82 | ||||
Net gain realized | $ | 3,163 | $ | 360 |
Less than 12 Months | 12 Months or More | Total | ||||||||||||||||||||||
(Dollars in thousands) | Fair Value | Unrealized Loss | No. of Securities | Fair Value | Unrealized Loss | No. of Securities | Fair Value | Unrealized Loss | ||||||||||||||||
March 31, 2012 | ||||||||||||||||||||||||
Obligations of: | ||||||||||||||||||||||||
U.S. Treasury and government agencies | $ | — | $ | — | — | $ | — | $ | — | — | $ | — | $ | — | ||||||||||
U.S. government sponsored agencies | — | — | — | — | — | — | — | — | ||||||||||||||||
States and political subdivisions | — | — | — | — | — | — | — | — | ||||||||||||||||
Residential mortgage-backed securities | 95,533 | 2,509 | 16 | 86,868 | 9,107 | 16 | 182,401 | 11,616 | ||||||||||||||||
Commercial mortgage-backed securities | 6,138 | 28 | 1 | — | — | — | 6,138 | 28 | ||||||||||||||||
Bank-issued trust preferred securities | 4,830 | 194 | 3 | 4,545 | 847 | 5 | 9,375 | 1,041 | ||||||||||||||||
Equity securities | — | — | — | 80 | 95 | 1 | 80 | 95 | ||||||||||||||||
Total | $ | 106,501 | $ | 2,731 | 20 | $ | 91,493 | $ | 10,049 | 22 | $ | 197,994 | $ | 12,780 | ||||||||||
December 31, 2011 | ||||||||||||||||||||||||
Obligations of: | ||||||||||||||||||||||||
U.S. Treasury and government agencies | $ | — | $ | — | — | $ | 3 | $ | — | 1 | $ | 3 | $ | — | ||||||||||
U.S. government sponsored agencies | — | — | — | — | — | — | — | — | ||||||||||||||||
States and political subdivisions | — | — | — | — | — | — | — | — | ||||||||||||||||
Residential mortgage-backed securities | 60,148 | 756 | 13 | 91,400 | 9,079 | 15 | 151,548 | 9,835 | ||||||||||||||||
Commercial mortgage-backed securities | — | — | — | — | — | — | — | — | ||||||||||||||||
Bank-issued trust preferred securities | 6,872 | 625 | 4 | 4,329 | 1,062 | 5 | 11,201 | 1,687 | ||||||||||||||||
Equity securities | — | — | — | 83 | 93 | 1 | 83 | 93 | ||||||||||||||||
Total | $ | 67,020 | $ | 1,381 | 17 | $ | 95,815 | $ | 10,234 | 22 | $ | 162,835 | $ | 11,615 |
(Dollars in thousands) | Within 1 Year | 1 to 5 Years | 5 to 10 Years | Over 10 Years | Total | ||||||||||
Amortized cost | |||||||||||||||
Obligations of: | |||||||||||||||
U.S. Treasury and government agencies | $ | — | $ | 11 | $ | 20 | $ | — | $ | 31 | |||||
U.S. government sponsored agencies | — | 655 | — | — | 655 | ||||||||||
States and political subdivisions | 1,173 | 3,464 | 9,905 | 16,622 | 31,164 | ||||||||||
Residential mortgage-backed securities | 125 | 1,073 | 50,744 | 468,671 | 520,613 | ||||||||||
Commercial mortgage-backed securities | — | — | 18,398 | 16,855 | 35,253 | ||||||||||
Bank-issued trust preferred securities | — | — | — | 13,888 | 13,888 | ||||||||||
Equity securities | — | — | — | 1,213 | 1,213 | ||||||||||
Total available-for-sale securities | $ | 1,298 | $ | 5,203 | $ | 79,067 | $ | 517,249 | $ | 602,817 | |||||
Fair value | |||||||||||||||
Obligations of: | |||||||||||||||
U.S. Treasury and government agencies | $ | — | $ | 11 | $ | 20 | $ | — | $ | 31 | |||||
U.S. government sponsored agencies | — | 702 | — | — | 702 | ||||||||||
States and political subdivisions | 1,184 | 3,598 | 10,991 | 18,402 | 34,175 | ||||||||||
Residential mortgage-backed securities | 127 | 1,148 | 52,339 | 469,045 | 522,659 | ||||||||||
Commercial mortgage-backed securities | — | — | 19,145 | 17,085 | 36,230 | ||||||||||
Bank-issued trust preferred securities | — | — | — | 12,901 | 12,901 | ||||||||||
Equity securities | — | — | — | 3,338 | 3,338 | ||||||||||
Total available-for-sale securities | $ | 1,311 | $ | 5,459 | $ | 82,495 | $ | 520,771 | $ | 610,036 | |||||
Total average yield | 6.23 | % | 5.67 | % | 4.31 | % | 3.6 | % | 3.71 | % |
(Dollars in thousands) | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||
March 31, 2012 | ||||||||||||
Obligations of: | ||||||||||||
States and political subdivisions | $ | 3,524 | $ | 287 | $ | — | $ | 3,811 | ||||
Residential mortgage-backed securities | 23,902 | 287 | (242 | ) | 23,947 | |||||||
Commercial mortgage-backed securities | 6,872 | 4 | — | 6,876 | ||||||||
Total held-to-maturity securities | $ | 34,298 | $ | 578 | $ | (242 | ) | $ | 34,634 | |||
December 31, 2011 | ||||||||||||
Obligations of: | ||||||||||||
States and political subdivisions | $ | 3,525 | $ | 262 | $ | — | $ | 3,787 | ||||
Residential mortgage-backed securities | 12,776 | 230 | (88 | ) | 12,918 | |||||||
Total held-to-maturity securities | $ | 16,301 | $ | 492 | $ | (88 | ) | $ | 16,705 |
Less than 12 Months | 12 Months or More | Total | ||||||||||||||||||||||
(Dollars in thousands) | Fair Value | Unrealized Loss | No. of Securities | Fair Value | Unrealized Loss | No. of Securities | Fair Value | Unrealized Loss | ||||||||||||||||
March 31, 2012 | ||||||||||||||||||||||||
Obligations of: | ||||||||||||||||||||||||
States and political subdivisions | $ | — | $ | — | — | $ | — | $ | — | — | $ | — | $ | — | ||||||||||
Residential mortgage-backed securities | 5,956 | 242 | 1 | — | — | — | 5,956 | 242 | ||||||||||||||||
Total | $ | 5,956 | $ | 242 | 1 | $ | — | $ | — | — | $ | 5,956 | $ | 242 | ||||||||||
December 31, 2011 | ||||||||||||||||||||||||
Obligations of: | ||||||||||||||||||||||||
States and political subdivisions | $ | — | $ | — | — | $ | — | $ | — | — | $ | — | $ | — | ||||||||||
Residential mortgage-backed securities | 6,416 | 88 | 1 | — | — | — | 6,416 | 88 | ||||||||||||||||
Total | $ | 6,416 | $ | 88 | 1 | $ | — | $ | — | — | $ | 6,416 | $ | 88 |
(Dollars in thousands) | Within 1 Year | 1 to 5 Years | 5 to 10 Years | Over 10 Years | Total | ||||||||||
Amortized cost | |||||||||||||||
Obligations of: | |||||||||||||||
States and political subdivisions | $ | — | $ | — | $ | — | $ | 3,524 | $ | 3,524 | |||||
Residential mortgage-backed securities | — | — | — | 23,902 | 23,902 | ||||||||||
Commercial mortgage-backed securities | — | — | — | 6,872 | 6,872 | ||||||||||
Total held-to-maturity securities | $ | — | $ | — | $ | — | $ | 34,298 | $ | 34,298 | |||||
Fair value | |||||||||||||||
Obligations of: | |||||||||||||||
States and political subdivisions | $ | — | $ | — | $ | — | $ | 3,811 | $ | 3,811 | |||||
Residential mortgage-backed securities | — | — | — | 23,947 | 23,947 | ||||||||||
Commercial mortgage-backed securities | — | — | — | 6,876 | 6,876 | ||||||||||
Total held-to-maturity securities | $ | — | $ | — | $ | — | $ | 34,634 | $ | 34,634 | |||||
Total average yield | — | % | — | % | — | % | 3.04 | % | 3.04 | % |
March 31, | December 31, | |||||
(Dollars in thousands) | 2012 | 2011 | ||||
Commercial real estate | $ | 394,034 | $ | 410,352 | ||
Commercial and industrial | 150,431 | 140,857 | ||||
Real estate construction | 43,510 | 30,577 | ||||
Residential real estate | 218,745 | 219,619 | ||||
Home equity lines of credit | 48,067 | 47,790 | ||||
Consumer | 86,965 | 87,531 | ||||
Deposit account overdrafts | 2,351 | 1,780 | ||||
Total loans | $ | 944,103 | $ | 938,506 |
March 31, | December 31, | |||||
(Dollars in thousands) | 2012 | 2011 | ||||
Commercial real estate | $ | 3,222 | $ | 3,754 | ||
Commercial and industrial | 151 | 109 | ||||
Residential real estate | 13,893 | 14,497 | ||||
Consumer | 92 | 101 | ||||
Total outstanding balance | $ | 17,358 | $ | 18,461 | ||
Net carrying amount | $ | 16,851 | $ | 17,954 |
Accruing Loans | |||||||||||||
Nonaccrual Loans | 90+ Days Past Due | ||||||||||||
March 31, | December 31, | March 31, | December 31, | ||||||||||
(Dollars in thousands) | 2012 | 2011 | 2012 | 2011 | |||||||||
Commercial real estate | $ | 14,208 | $ | 23,546 | $ | — | $ | — | |||||
Commercial and industrial | 1,949 | 2,262 | — | — | |||||||||
Real estate construction | — | — | — | — | |||||||||
Residential real estate | 4,135 | 3,865 | — | — | |||||||||
Home equity lines of credit | 200 | 349 | — | — | |||||||||
Consumer | — | — | — | — | |||||||||
Total | $ | 20,492 | $ | 30,022 | $ | — | $ | — |
Loans Past Due | Current | Total | |||||||||||||||||
(Dollars in thousands) | 30 - 59 days | 60 - 89 days | 90 + Days | Total | Loans | Loans | |||||||||||||
March 31, 2012 | |||||||||||||||||||
Commercial real estate | $ | 1,418 | $ | 5,067 | $ | 7,146 | $ | 13,631 | $ | 380,403 | $ | 394,034 | |||||||
Commercial and industrial | 211 | 295 | 36 | 542 | 149,889 | 150,431 | |||||||||||||
Real estate construction | — | — | — | — | 43,510 | 43,510 | |||||||||||||
Residential real estate | 2,731 | 732 | 3,544 | 7,007 | 211,738 | 218,745 | |||||||||||||
Home equity lines of credit | 80 | 6 | 200 | 286 | 47,781 | 48,067 | |||||||||||||
Consumer | 378 | 30 | — | 408 | 86,557 | 86,965 | |||||||||||||
Deposit account overdrafts | 33 | — | — | 33 | 2,318 | 2,351 | |||||||||||||
Total | $ | 4,851 | $ | 6,130 | $ | 10,926 | $ | 21,907 | $ | 922,196 | $ | 944,103 | |||||||
December 31, 2011 | |||||||||||||||||||
Commercial real estate | $ | 2,700 | $ | 2,286 | $ | 11,363 | $ | 16,349 | $ | 394,003 | $ | 410,352 | |||||||
Commercial and industrial | 230 | 360 | 37 | 627 | 140,230 | 140,857 | |||||||||||||
Real estate construction | — | — | — | — | 30,577 | 30,577 | |||||||||||||
Residential real estate | 5,750 | 1,187 | 3,082 | 10,019 | 209,600 | 219,619 | |||||||||||||
Home equity lines of credit | 206 | — | 349 | 555 | 47,235 | 47,790 | |||||||||||||
Consumer | 874 | 86 | — | 960 | 86,571 | 87,531 | |||||||||||||
Deposit account overdrafts | 66 | — | — | 66 | 1,714 | 1,780 | |||||||||||||
Total | $ | 9,826 | $ | 3,919 | $ | 14,831 | $ | 28,576 | $ | 909,930 | $ | 938,506 | |||||||
Pass Rated | Watch | Substandard | Doubtful | Not | Total | |||||||||||||
(Dollars in thousands) | (Grades 1 - 4) | (Grade 5) | (Grade 6) | (Grade 7) | Rated | Loans | ||||||||||||
March 31, 2012 | ||||||||||||||||||
Commercial real estate | $ | 313,376 | $ | 32,847 | $ | 47,083 | $ | — | $ | 728 | $ | 394,034 | ||||||
Commercial and industrial | 113,420 | 12,870 | 5,879 | — | 18,262 | 150,431 | ||||||||||||
Real estate construction | 37,520 | 2,915 | 2,120 | — | 955 | 43,510 | ||||||||||||
Residential real estate | 27,909 | 2,380 | 9,238 | 8 | 179,210 | 218,745 | ||||||||||||
Home equity lines of credit | 1,486 | 42 | 1,324 | — | 45,215 | 48,067 | ||||||||||||
Consumer | 86 | — | 27 | — | 86,852 | 86,965 | ||||||||||||
Deposit account overdrafts | — | — | — | — | 2,351 | 2,351 | ||||||||||||
Total | $ | 493,797 | $ | 51,054 | $ | 65,671 | $ | 8 | $ | 333,573 | $ | 944,103 | ||||||
December 31, 2011 | ||||||||||||||||||
Commercial real estate | $ | 310,996 | $ | 40,165 | $ | 56,142 | $ | — | $ | 3,049 | $ | 410,352 | ||||||
Commercial and industrial | 100,987 | 18,636 | 6,625 | — | 14,609 | 140,857 | ||||||||||||
Real estate construction | 23,710 | 2,932 | 2,062 | — | 1,873 | 30,577 | ||||||||||||
Residential real estate | 28,507 | 2,913 | 10,097 | 20 | 178,082 | 219,619 | ||||||||||||
Home equity lines of credit | 1,491 | 42 | 1,394 | — | 44,863 | 47,790 | ||||||||||||
Consumer | 72 | — | 32 | — | 87,427 | 87,531 | ||||||||||||
Deposit account overdrafts | — | — | — | — | 1,780 | 1,780 | ||||||||||||
Total | $ | 465,763 | $ | 64,688 | $ | 76,352 | $ | 20 | $ | 331,683 | $ | 938,506 |
Unpaid | Recorded Investment | Total | Average | Interest | |||||||||||||||||
Principal | With | Without | Recorded | Related | Recorded | Income | |||||||||||||||
(Dollars in thousands) | Balance | Allowance | Allowance | Investment | Allowance | Investment | Recognized | ||||||||||||||
March 31, 2012 | |||||||||||||||||||||
Commercial real estate | $ | 27,802 | $ | 2,461 | $ | 12,117 | $ | 14,578 | $ | 587 | $ | 18,980 | $ | — | |||||||
Commercial and industrial | 2,006 | — | 1,909 | 1,909 | — | 2,065 | — | ||||||||||||||
Real estate construction | — | — | — | — | — | — | — | ||||||||||||||
Residential real estate | 3,443 | 1,227 | 1,263 | 2,490 | 350 | 2,520 | — | ||||||||||||||
Home equity lines of credit | 420 | — | 200 | 200 | — | 234 | — | ||||||||||||||
Total | $ | 33,671 | $ | 3,688 | $ | 15,489 | $ | 19,177 | $ | 937 | $ | 23,799 | $ | — | |||||||
December 31, 2011 | |||||||||||||||||||||
Commercial real estate | $ | 49,402 | $ | 6,882 | $ | 16,501 | $ | 23,383 | $ | 1,026 | $ | 23,058 | $ | — | |||||||
Commercial and industrial | 2,290 | 1,801 | 420 | 2,221 | 407 | 1,098 | — | ||||||||||||||
Real estate construction | — | — | — | — | — | — | — | ||||||||||||||
Residential real estate | 3,901 | 323 | 2,226 | 2,549 | 49 | 2,081 | — | ||||||||||||||
Home equity lines of credit | 420 | — | 269 | 269 | — | 332 | — | ||||||||||||||
Total | $ | 56,013 | $ | 9,006 | $ | 19,416 | $ | 28,422 | $ | 1,482 | $ | 26,569 | $ | — |
Number of Contracts | Recorded Investment (1) | Impact on the Allowance for Loan Losses | ||||||
Commercial Real Estate | 3 | $ | 1,232 | $ | — | |||
(1) The amounts shown are inclusive of all partial paydowns and charge-offs. Loans modified in a TDR that were fully paid down, charged-off or foreclosed upon by period end are not reported. |
(Dollars in thousands) | Commercial Real Estate | Commercial and Industrial | Residential Real Estate | Real Estate Construction | Home Equity Lines of Credit | Consumer | Deposit Account Overdrafts | Total | ||||||||||||||||
Balance, January 1, 2012 | $ | 18,947 | $ | 2,434 | $ | 1,119 | $ | — | $ | 541 | $ | 449 | $ | 227 | $ | 23,717 | ||||||||
Charge-offs | (1,957 | ) | — | (207 | ) | — | (71 | ) | (214 | ) | (122 | ) | (2,571 | ) | ||||||||||
Recoveries | 1,606 | 48 | 304 | — | 7 | 188 | 87 | 2,240 | ||||||||||||||||
Net (charge-offs) | (351 | ) | 48 | 97 | — | (64 | ) | (26 | ) | (35 | ) | (331 | ) | |||||||||||
Provision for loan losses | (1,100 | ) | (1,025 | ) | — | — | — | — | (12 | ) | (2,137 | ) | ||||||||||||
Balance, March 31, 2012 | $ | 17,496 | $ | 1,457 | $ | 1,216 | $ | — | $ | 477 | $ | 423 | $ | 180 | $ | 21,249 | ||||||||
Period-end amount allocated to: | ||||||||||||||||||||||||
Loans individually evaluated for impairment | $ | 587 | $ | — | $ | 350 | $ | — | $ | — | $ | — | $ | — | $ | 937 | ||||||||
Loans collectively evaluated for impairment | 16,909 | 1,457 | 866 | — | 477 | 423 | 180 | 20,312 | ||||||||||||||||
Ending balance | $ | 17,496 | $ | 1,457 | $ | 1,216 | $ | — | $ | 477 | $ | 423 | $ | 180 | $ | 21,249 | ||||||||
Balance, January 1, 2011 | $ | 21,806 | $ | 2,160 | $ | 1,400 | $ | — | $ | 431 | $ | 721 | $ | 248 | $ | 26,766 | ||||||||
Charge-offs | (7,078 | ) | (835 | ) | (201 | ) | — | (247 | ) | (283 | ) | (136 | ) | (8,780 | ) | |||||||||
Recoveries | 315 | 59 | 443 | — | 10 | 222 | 103 | 1,152 | ||||||||||||||||
Net (charge-offs) | (6,763 | ) | (776 | ) | 242 | — | (237 | ) | (61 | ) | (33 | ) | (7,628 | ) | ||||||||||
Provision for loan losses | 4,570 | 350 | — | — | 250 | 130 | 11 | 5,311 | ||||||||||||||||
Balance, March 31, 2011 | $ | 19,613 | $ | 1,734 | $ | 1,642 | $ | — | $ | 444 | $ | 790 | $ | 226 | $ | 24,449 | ||||||||
Period-end amount allocated to: | ||||||||||||||||||||||||
Loans individually evaluated for impairment | $ | 739 | $ | 163 | $ | — | $ | — | $ | 85 | $ | — | $ | — | $ | 987 | ||||||||
Loans collectively evaluated for impairment | 18,874 | 1,571 | 1,642 | — | 359 | 790 | 226 | 23,462 | ||||||||||||||||
Ending balance | $ | 19,613 | $ | 1,734 | $ | 1,642 | $ | — | $ | 444 | $ | 790 | $ | 226 | $ | 24,449 |
March 31, 2012 | December 31, 2011 | |||||||||
(Dollars in thousands) | Balance | Weighted- Average Rate | Balance | Weighted- Average Rate | ||||||
Callable national market repurchase agreements | $ | 40,000 | 3.63 | % | $ | 65,000 | 3.43 | % | ||
FHLB putable non-amortizing, fixed rate advances | 50,000 | 3.32 | % | 60,000 | 3.28 | % | ||||
FHLB amortizing, fixed rate advances | 16,652 | 3.61 | % | 17,312 | 3.59 | % | ||||
Total long-term borrowings | $ | 106,652 | 3.48 | % | $ | 142,312 | 3.38 | % |
(Dollars in thousands) | Balance | Weighted-Average Rate | |||
Nine Months Ending December 31, 2012 | $ | 1,747 | 3.76 | % | |
Year Ending December 31, 2013 | 2,225 | 3.67 | % | ||
Year Ending December 31, 2014 | 1,721 | 3.55 | % | ||
Year Ending December 31, 2015 | 1,466 | 3.55 | % | ||
Year Ending December 31, 2016 | 1,257 | 3.56 | % | ||
Thereafter | 98,236 | 3.47 | % | ||
Total long-term borrowings | $ | 106,652 | 3.48 | % |
Preferred Stock | Common Stock | Treasury Stock | ||||
Shares at December 31, 2011 | — | 11,122,247 | 615,123 | |||
Changes related to stock-based compensation awards: | ||||||
Release of restricted common shares | 2,000 | 748 | ||||
Changes related to deferred compensation plan: | ||||||
Purchase of treasury stock | 1,320 | |||||
Reissuance of treasury stock | (7,487 | ) | ||||
Common shares issued under dividend reinvestment plan | 5,165 | |||||
Common shares issued under Board of Directors' compensation plan | — | (1,840 | ) | |||
Shares at March 31, 2012 | — | 11,129,412 | 607,864 |
(Dollars in thousands) | Unrealized (Loss) Gain on Securities | Unrecognized Net Pension and Postretirement Costs | Accumulated Comprehensive (Loss) Income | ||||||
Balance, December 31, 2011 | $ | 7,439 | $ | (6,027 | ) | $ | 1,412 | ||
Current period change, net of tax | (2,747 | ) | 25 | (2,722 | ) | ||||
Balance, March 31, 2012 | $ | 4,692 | $ | (6,002 | ) | $ | (1,310 | ) |
Pension Benefits | Postretirement Benefits | ||||||||||||
Three Months Ended | Three Months Ended | ||||||||||||
March 31, | March 31, | ||||||||||||
(Dollars in thousands) | 2012 | 2011 | 2012 | 2011 | |||||||||
Interest cost | 152 | 172 | 2 | 3 | |||||||||
Expected return on plan assets | (196 | ) | (280 | ) | — | — | |||||||
Amortization of net loss | 39 | 8 | (2 | ) | (2 | ) | |||||||
Net periodic benefit cost | $ | (5 | ) | $ | (100 | ) | $ | — | $ | 1 |
Options Outstanding & Exercisable | ||||||||
Range of Exercise Prices | Common Shares Subject to Options Outstanding | Weighted- Average Remaining Contractual Life | Weighted-Average Exercise Price | |||||
$15.55 | to | $21.71 | 4,043 | 1.0 | $ | 21.71 | ||
$21.72 | to | $23.58 | 35,815 | 0.8 | 22.32 | |||
$23.59 | to | $25.94 | 30,946 | 0.3 | 23.93 | |||
$26.01 | to | $27.74 | 29,876 | 2.2 | 27.08 | |||
$28.25 | to | $28.26 | 20,961 | 3.3 | 28.25 | |||
$28.57 | to | $30.00 | 25,236 | 2.7 | 29.02 | |||
Total | 146,877 | 1.7 | $ | 25.61 |
Exercise Price | Number of Common Shares Subject to SARs Outstanding & Exercisable | Weighted- Average Remaining Contractual Life | |
$23.26 | 2,000 | 5.3 | |
$23.77 | 13,618 | 5.0 | |
$29.25 | 10,784 | 4.2 | |
Total | 26,402 | 4.7 |
Time Vesting | Performance Vesting | ||||||||||
Number of Shares | Weighted-Average Grant Date Fair Value | Number of Shares | Weighted-Average Grant Date Fair Value | ||||||||
Outstanding at January 1 | 26,544 | $ | 12.89 | 3,363 | $ | 13.14 | |||||
Awarded | 41,628 | 16.01 | 15,360 | 16.76 | |||||||
Released | 2,000 | 14.29 | — | — | |||||||
Forfeited | 1,428 | 14.73 | 858 | 16.98 | |||||||
Outstanding at March 31 | 64,744 | $ | 14.82 | 17,865 | $ | 16.07 |
Three Months Ended | ||||||
March 31, | ||||||
(Dollars in thousands) | 2012 | 2011 | ||||
Total stock-based compensation | $ | 226 | $ | 33 | ||
Recognized tax benefit | (79 | ) | (12 | ) | ||
Net expense recognized | $ | 147 | $ | 21 |
Three Months Ended | ||||||
March 31, | ||||||
(Dollars in thousands, except per common share data) | 2012 | 2011 | ||||
Distributed earnings allocated to common stock | $ | 1,165 | $ | 1,055 | ||
Undistributed earnings allocated to common stock | 5,458 | 290 | ||||
Net earnings allocated to common shareholders | $ | 6,623 | $ | 1,345 | ||
Weighted-average common shares outstanding | 10,513,388 | 10,471,819 | ||||
Effect of potentially dilutive common shares | — | 5,541 | ||||
Total weighted-average diluted common shares outstanding | 10,513,388 | 10,477,360 | ||||
Earnings per common share: | ||||||
Basic | $ | 0.63 | $ | 0.13 | ||
Diluted | $ | 0.63 | $ | 0.13 |
At or For the Three Months Ended | ||||||
March 31, | ||||||
2012 | 2011 | |||||
SIGNIFICANT RATIOS | ||||||
Return on average stockholders' equity | 12.90 | % | 3.47 | % | ||
Return on average common stockholders' equity | 12.90 | % | 2.83 | % | ||
Return on average assets | 1.48 | % | 0.42 | % | ||
Net interest margin | 3.41 | % | 3.43 | % | ||
Efficiency ratio (a) | 65.47 | % | 65.21 | % | ||
Average stockholders' equity to average assets | 11.49 | % | 11.96 | % | ||
Average loans to average deposits | 69.11 | % | 70.24 | % | ||
Dividend payout ratio | 17.61 | % | 78.60 | % | ||
ASSET QUALITY RATIOS | ||||||
Nonperforming loans as a percent of total loans (b)(c) | 2.16 | % | 3.41 | % | ||
Nonperforming assets as a percent of total assets (b)(c) | 1.18 | % | 2.04 | % | ||
Allowance for loan losses to loans net of unearned interest (c) | 2.25 | % | 2.58 | % | ||
Allowance for loan losses to nonperforming loans (b)(c) | 103.69 | % | 75.56 | % | ||
Provision for loan losses to average loans (annualized) | (0.91 | )% | 2.24 | % | ||
Net charge-offs as a percentage of average loans (annualized) | 0.14 | % | 3.21 | % | ||
CAPITAL INFORMATION (c) | ||||||
Tier 1 common capital ratio | 13.82 | % | 11.72 | % | ||
Tier 1 capital ratio | 15.86 | % | 15.25 | % | ||
Total risk-based capital ratio | 17.20 | % | 16.60 | % | ||
Leverage ratio | 10.05 | % | 9.81 | % | ||
Tangible equity to tangible assets (d) | 8.28 | % | 8.39 | % | ||
Tangible common equity to tangible assets (d) | 8.28 | % | 7.36 | % | ||
Tangible assets (d) | $ | 1,741,494 | $ | 1,736,825 | ||
Tangible equity (d) | 144,237 | 145,720 | ||||
Tangible common equity (d) | $ | 144,237 | $ | 127,870 | ||
PER COMMON SHARE DATA | ||||||
Earnings (loss) per share – Basic | $ | 0.63 | $ | 0.13 | ||
Earnings (loss) per share – Diluted | 0.63 | 0.13 | ||||
Cash dividends declared per share | 0.11 | 0.10 | ||||
Book value per share (c) | 19.83 | 18.39 | ||||
Tangible book value per share (c) (d) | $ | 13.71 | $ | 12.21 | ||
Weighted-average common shares outstanding – Basic | 10,513,388 | 10,471,819 | ||||
Weighted-average common shares outstanding – Diluted | 10,513,388 | 10,477,360 | ||||
Common shares outstanding at end of period | 10,521,548 | 10,474,507 |
(a) | Non-interest expense (less intangible asset amortization) as a percentage of fully tax-equivalent net interest income plus non-interest income (excluding gains or losses on investment securities and asset disposals). |
(b) | Nonperforming loans include loans 90 days past due and accruing, renegotiated loans and nonaccrual loans. Nonperforming assets include nonperforming loans and other real estate owned. |
(c) | Data presented as of the end of the period indicated. |
(d) | These amounts represent non-GAAP financial measures since they exclude the balance sheet impact of intangible assets acquired through acquisitions on both total stockholders’ equity and total assets. Additional information regarding the calculation of these measures can be found later in this discussion under the caption “Capital/Stockholders’ Equity”. |
(1) | deterioration in the credit quality of Peoples’ loan portfolio could occur due to a number of factors, such as adverse changes in economic conditions that impair the ability of borrowers to repay their loans, the underlying value of the collateral could prove less valuable than otherwise assumed and assumed cash flows may be worse than expected, which may adversely impact the provision for loan losses; |
(2) | competitive pressures among financial institutions or from non-financial institutions, which may increase significantly, impacting product and pricing pressures and Peoples' ability to attract, develop and retain qualified professionals; |
(3) | changes in the interest rate environment, which may adversely impact interest margins; |
(4) | changes in prepayment speeds, loan originations, sale volumes and charge-offs, which may be less favorable than expected and adversely impact the amount of interest income generated; |
(5) | economic conditions, either nationally or in the areas where Peoples and its subsidiaries do business, may be less favorable than expected, which could decrease the demand for loans, deposits and other financial services and increase loan delinquencies and defaults; |
(6) | political developments, wars or other hostilities, which may disrupt or increase volatility in securities markets or other economic conditions; |
(7) | legislative or regulatory changes or actions, including in particular the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 and the regulations promulgated and to be promulgated thereunder, which may subject Peoples and its subsidiaries to a variety of new and more stringent legal and regulatory requirements which adversely affect their businesses; |
(8) | changes in accounting standards, policies, estimates or procedures may adversely affect Peoples’ reported financial condition or results of operations; |
(9) | adverse changes in the conditions and trends in the financial markets, which may adversely affect the fair value of securities within Peoples’ investment portfolio and interest rate sensitivity of Peoples' Consolidated Balance Sheets; |
(10) | Peoples’ ability to receive dividends from its subsidiaries; |
(11) | Peoples’ ability to maintain required capital levels and adequate sources of funding and liquidity; |
(12) | the impact of larger or similar financial institutions encountering problems, which may adversely affect the banking industry and/or Peoples; |
(13) | the impact of reputational risk created by these developments on such matters as business generation and retention, funding and liquidity; |
(14) | the costs and effects of regulatory and legal developments, including the outcome of regulatory or other governmental inquiries and legal proceedings and results of regulatory examinations; |
(15) | Peoples' ability to secure confidential information through the use of computer systems and telecommunications networks may prove inadequate, which if proven inadequate, would adversely affect customer confidence in Peoples and/or result in Peoples incurring a financial loss; and |
(16) | 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 (“SEC”), including those risk factors included in the disclosure under the headings “ITEM 1A. RISK FACTORS” of Peoples’ Annual Report on Form 10-K for the year ended December 31, 2011 (the “2011 Form 10-K”). |
◦ | In the first quarter of 2012, Peoples prepaid $35 million of wholesale borrowings using short-term funds, which resulted in prepayment charges of $3.1 million. These borrowings had an average cost of 3.09% and consisted of both term repurchase agreements and advances from the Federal Home Loan Bank. The impact of the prepayment charges on first quarter earnings was offset by $3.2 million in gains from the sale of $60.5 million in investment securities. The securities sold were primarily mortgage-backed securities issued by U.S. government-sponsored agencies. The proceeds of these investment securities sales were reinvested into other securities with similar duration and yield. |
◦ | In 2009, Peoples received $39.0 million of new equity capital under the U.S. Treasury’s TARP Capital Purchase Program. The investment was in the form of newly-issued non-voting cumulative perpetual preferred shares and a related 10-year warrant to purchase common shares sold by Peoples to the U.S. Treasury (the “TARP Capital Investment”). On February 2, 2011, Peoples repurchased $21.0 million of the preferred shares held by the U.S. Treasury and the remaining $18.0 million were repurchased on December 28, 2011 (collectively, the "TARP Capital Redemption"). On February 15, 2012, Peoples completed the repurchase of the warrant for an aggregate price of $1.2 million, which was recognized as a direct reduction in the common stock component of Peoples' stockholders' equity. |
◦ | Since the second quarter of 2011, Peoples has experienced generally improving trends in several asset quality metrics, after a three-year trend of higher credit losses and non-performing assets than Peoples' long-term historical levels. Additionally, the amount of criticized loans has decreased due in part to Peoples upgrading the loan quality ratings of various commercial loans. These conditions have resulted in lower provisions for loan losses. However, unfavorable economic conditions within Peoples' market area, coupled with sustained weakness in commercial real estate values, continues to place stress on certain industries and segments of Peoples' loan portfolio, such as the hospitality sector. |
◦ | Peoples' net interest income and margin are impacted by changes in market interest rates based upon actions taken by the Federal Reserve Board either directly or through its Open Market Committee. These actions include changing its target Federal Funds Rate (the interest rate at which banks lend money to each other), Discount Rate (the interest rate charged to banks for money borrowed from the Federal Reserve Bank) and longer-term market interest rates (primarily U.S. Treasury securities). Longer-term market interest rates also are affected by the demand for U.S. Treasury securities. The resulting changes in the yield curve slope have a direct impact on reinvestment rates for Peoples' earning assets. |
◦ | The Federal Reserve Board has maintained its target Federal Funds Rate at a historically low level of 0% to 0.25% since December 2008 and has maintained the Discount Rate at 0.75% since December 2010. The Federal Reserve Board continues to indicate there is the potential for these short-term rates to remain unchanged until late 2014. |
◦ | Since late 2008, the Federal Reserve Board has taken various actions to lower longer-term market interest rates as a means of stimulating the economy – a policy commonly referred to as “quantitative easing”. These actions have included the buying and selling of mortgage-backed and other debt securities through its open market operations. As a result, the slope of the U.S. Treasury yield curve has fluctuated significantly. Substantial flattening occurred in late 2008, in mid-2010 and during the third quarter of 2011, while moderate steepening occurred in the second half of 2009 and late 2010. |
For the Three Months Ended | ||||||||||||||||||||||||||
March 31, 2012 | December 31, 2011 | March 31, 2011 | ||||||||||||||||||||||||
(Dollars in thousands) | Average Balance | Income/ Expense | Yield/Cost | Average Balance | Income/ Expense | Yield/Cost | Average Balance | Income/ Expense | Yield/Cost | |||||||||||||||||
Short-term investments | $ | 6,280 | $ | 4 | 0.25 | % | $ | 8,623 | $ | 4 | 0.22 | % | $ | 20,204 | $ | 11 | 0.22 | % | ||||||||
Investment Securities (1): | ||||||||||||||||||||||||||
Taxable | 646,847 | 5,553 | 3.40 | % | 639,318 | 5,958 | 3.73 | % | 617,915 | 6,248 | 4.04 | % | ||||||||||||||
Nontaxable (2) | 36,057 | 525 | 5.82 | % | 37,232 | 560 | 6.01 | % | 41,323 | 654 | 6.33 | % | ||||||||||||||
Total investment securities | 682,904 | 6,078 | 3.56 | % | 676,550 | 6,518 | 3.85 | % | 659,238 | 6,902 | 4.19 | % | ||||||||||||||
Loans (3): | ||||||||||||||||||||||||||
Commercial | 612,717 | 7,224 | 4.74 | % | 614,434 | 7,510 | 4.85 | % | 630,087 | 7,835 | 5.04 | % | ||||||||||||||
Real estate (4) | 243,972 | 3,140 | 5.09 | % | 244,520 | 3,226 | 5.28 | % | 249,918 | 3,353 | 5.37 | % | ||||||||||||||
Consumer | 89,541 | 1,425 | 6.40 | % | 89,644 | 1,489 | 6.59 | % | 83,419 | 1,516 | 7.37 | % | ||||||||||||||
Total loans | 946,230 | 11,789 | 5.00 | % | 948,598 | 12,225 | 5.12 | % | 963,424 | 12,704 | 5.33 | % | ||||||||||||||
Less: Allowance for loan losses | (24,429 | ) | (25,695 | ) | (28,338 | ) | ||||||||||||||||||||
Net loans | 921,801 | 11,789 | 5.14 | % | 922,903 | 12,225 | 5.27 | % | 935,086 | 12,704 | 5.49 | % | ||||||||||||||
Total earning assets | 1,610,985 | 17,871 | 4.45 | % | 1,608,076 | 18,747 | 4.64 | % | 1,614,528 | 19,617 | 4.89 | % | ||||||||||||||
Intangible assets | 64,425 | 64,451 | 64,820 | |||||||||||||||||||||||
Other assets | 131,331 | 137,664 | 145,379 | |||||||||||||||||||||||
Total assets | $ | 1,806,741 | $ | 1,810,191 | $ | 1,824,727 | ||||||||||||||||||||
Deposits: | ||||||||||||||||||||||||||
Savings accounts | $ | 147,420 | $ | 21 | 0.06 | % | $ | 136,665 | $ | 20 | 0.06 | % | $ | 128,784 | $ | 55 | 0.17 | % | ||||||||
Interest-bearing demand accounts | 247,557 | 269 | 0.44 | % | 238,860 | 267 | 0.44 | % | 232,932 | 622 | 1.08 | % | ||||||||||||||
Money market accounts | 264,808 | 126 | 0.19 | % | 264,378 | 135 | 0.20 | % | 278,664 | 245 | 0.36 | % | ||||||||||||||
Brokered deposits | 61,443 | 528 | 3.46 | % | 64,396 | 549 | 3.38 | % | 81,688 | 632 | 3.14 | % | ||||||||||||||
Retail certificates of deposit | 400,444 | 1,603 | 1.61 | % | 415,887 | 1,968 | 1.88 | % | 426,917 | 2,431 | 2.31 | % | ||||||||||||||
Total interest-bearing deposits | 1,121,672 | 2,547 | 0.91 | % | 1,120,186 | 2,939 | 1.04 | % | 1,148,985 | 3,985 | 1.41 | % | ||||||||||||||
Borrowed Funds: | ||||||||||||||||||||||||||
Short-term FHLB advances | 15,267 | 4 | 0.09 | % | 10,741 | 2 | 0.07 | % | 1,401 | 1 | 0.14 | % | ||||||||||||||
Retail repurchase agreements | 42,242 | 15 | 0.15 | % | 39,933 | 16 | 0.16 | % | 44,923 | 34 | 0.31 | % | ||||||||||||||
Total short-term borrowings | 57,509 | 19 | 0.13 | % | 50,674 | 18 | 0.14 | % | 46,324 | 35 | 0.30 | % | ||||||||||||||
Long-term FHLB advances | 73,578 | 617 | 3.37 | % | 78,343 | 661 | 3.35 | % | 88,901 | 764 | 3.49 | % | ||||||||||||||
Wholesale repurchase agreements | 56,923 | 502 | 3.49 | % | 65,000 | 569 | 3.43 | % | 65,000 | 546 | 3.36 | % | ||||||||||||||
Other borrowings | 22,605 | 495 | 8.66 | % | 22,596 | 499 | 8.64 | % | 22,570 | 492 | 8.73 | % | ||||||||||||||
Total long-term borrowings | 153,106 | 1,614 | 4.20 | % | 165,939 | 1,729 | 4.10 | % | 176,471 | 1,802 | 4.11 | % | ||||||||||||||
Total borrowed funds | 210,615 | 1,633 | 3.09 | % | 216,613 | 1,747 | 3.17 | % | 222,795 | 1,837 | 3.32 | % | ||||||||||||||
Total interest-bearing liabilities | 1,332,287 | 4,180 | 1.26 | % | 1,336,799 | 4,686 | 1.39 | % | 1,371,780 | 5,822 | 1.72 | % | ||||||||||||||
Non-interest-bearing deposits | 247,487 | 236,405 | 222,656 | |||||||||||||||||||||||
Other liabilities | 19,350 | 12,248 | 12,001 | |||||||||||||||||||||||
Total liabilities | 1,599,124 | 1,585,452 | 1,606,437 | |||||||||||||||||||||||
Preferred equity | — | 17,104 | 25,245 | |||||||||||||||||||||||
Common equity | 207,617 | 207,635 | 193,045 | |||||||||||||||||||||||
Total stockholders’ equity | 207,617 | 224,739 | 218,290 | |||||||||||||||||||||||
Total liabilities and | ||||||||||||||||||||||||||
stockholders’ equity | $ | 1,806,741 | $ | 1,810,191 | $ | 1,824,727 | ||||||||||||||||||||
Interest rate spread | $ | 13,691 | 3.19 | % | $ | 14,061 | 3.25 | % | $ | 13,795 | 3.17 | % | ||||||||||||||
Net interest margin | 3.41 | % | 3.49 | % | 3.43 | % |
(1) | Average balances are based on carrying value. |
(2) | Interest income and yields are presented on a fully tax-equivalent basis using a 35% federal statutory tax rate. |
(3) | Nonaccrual and impaired loans are included in the average loan balances. Related interest income earned on nonaccrual loans prior to |
(4) | 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. |
Three Months Ended | |||||||||
March 31, 2012 | December 31, 2011 | March 31, 2011 | |||||||
(Dollars in thousands) | |||||||||
Net interest income, as reported | $ | 13,432 | $ | 13,789 | $ | 13,495 | |||
Taxable equivalent adjustments | 259 | 272 | 300 | ||||||
Fully tax-equivalent net interest income | $ | 13,691 | $ | 14,061 | $ | 13,795 |
Three Months Ended March 31, 2012 Compared to | |||||||||||||||||||
(Dollars in thousands) | December 31, 2011 | March 31, 2011 | |||||||||||||||||
Increase (decrease) in: | Rate | Volume | Total (1) | Rate | Volume | Total (1) | |||||||||||||
INTEREST INCOME: | |||||||||||||||||||
Short-term investments | $ | 4 | $ | (4 | ) | $ | — | $ | 10 | $ | (17 | ) | $ | (7 | ) | ||||
Investment Securities: (2) | |||||||||||||||||||
Taxable | (853 | ) | 448 | (405 | ) | (2,349 | ) | 1,654 | (695 | ) | |||||||||
Nontaxable | (18 | ) | (17 | ) | (35 | ) | (50 | ) | (79 | ) | (129 | ) | |||||||
Total investment income | (871 | ) | 431 | (440 | ) | (2,399 | ) | 1,575 | (824 | ) | |||||||||
Loans: | |||||||||||||||||||
Commercial | (254 | ) | (32 | ) | (286 | ) | (418 | ) | (193 | ) | (611 | ) | |||||||
Real estate | (74 | ) | (12 | ) | (86 | ) | (145 | ) | (68 | ) | (213 | ) | |||||||
Consumer | (62 | ) | (2 | ) | (64 | ) | (638 | ) | 547 | (91 | ) | ||||||||
Total loan income | (390 | ) | (46 | ) | (436 | ) | (1,201 | ) | 286 | (915 | ) | ||||||||
Total interest income | (1,257 | ) | 381 | (876 | ) | (3,590 | ) | 1,844 | (1,746 | ) | |||||||||
INTEREST EXPENSE: | |||||||||||||||||||
Deposits: | |||||||||||||||||||
Savings accounts | (3 | ) | 4 | 1 | (80 | ) | 46 | (34 | ) | ||||||||||
Interest-bearing demand accounts | (21 | ) | 23 | 2 | (606 | ) | 253 | (353 | ) | ||||||||||
Money market accounts | (10 | ) | 1 | (9 | ) | (107 | ) | (12 | ) | (119 | ) | ||||||||
Brokered certificates of deposit | 58 | (79 | ) | (21 | ) | 339 | (443 | ) | (104 | ) | |||||||||
Retail certificates of deposit | (290 | ) | (75 | ) | (365 | ) | (687 | ) | (141 | ) | (828 | ) | |||||||
Total deposit cost | (266 | ) | (126 | ) | (392 | ) | (1,141 | ) | (297 | ) | (1,438 | ) | |||||||
Borrowed funds: | |||||||||||||||||||
Short-term borrowings | (2 | ) | 3 | 1 | (19 | ) | 3 | (16 | ) | ||||||||||
Long-term borrowings | 24 | (139 | ) | (115 | ) | 91 | (279 | ) | (188 | ) | |||||||||
Total borrowed funds cost | 22 | (136 | ) | (114 | ) | 72 | (276 | ) | (204 | ) | |||||||||
Total interest expense | (244 | ) | (262 | ) | (506 | ) | (1,069 | ) | (573 | ) | (1,642 | ) | |||||||
Net interest income | $ | (1,013 | ) | $ | 643 | $ | (370 | ) | $ | (2,521 | ) | $ | 2,417 | $ | (104 | ) |
(1) | The change in interest due to both rate and volume has been allocated to rate and volume changes in proportion to the relationship of the dollar amounts of the change in each. |
(2) | Presented on a fully tax-equivalent basis. |
Three Months Ended | |||||||||
March 31, 2012 | December 31, 2011 | March 31, 2011 | |||||||
(Dollars in thousands) | |||||||||
(Recovery of) provision for checking account overdrafts | $ | (12 | ) | $ | 147 | $ | 11 | ||
(Recovery of) provision for other loan losses | (2,125 | ) | (620 | ) | 5,300 | ||||
Net (recovery of) provision for loan losses | $ | (2,137 | ) | $ | (473 | ) | $ | 5,311 | |
As a percentage of average gross loans (a) | (0.91 | )% | (0.20 | )% | 2.24 | % | |||
(a) Presented on an annualized basis |
Three Months Ended | |||||||||
March 31, 2012 | December 31, 2011 | March 31, 2011 | |||||||
(Dollars in thousands) | |||||||||
Net gain (loss) on OREO | $ | 56 | $ | (869 | ) | $ | 57 | ||
Gain (loss) on loans held-for-sale | — | — | |||||||
Loss on debt extinguishment | (3,111 | ) | — | — | |||||
Net (loss) gain on bank premises and equipment | (7 | ) | 60 | 3 | |||||
Net other gains (losses) | $ | (3,062 | ) | $ | (809 | ) | $ | 60 |
Three Months Ended | |||||||||
March 31, 2012 | December 31, 2011 | March 31, 2011 | |||||||
(Dollars in thousands) | |||||||||
Property and casualty insurance commissions | $ | 1,823 | $ | 1,709 | $ | 1,678 | |||
Performance-based commissions | 919 | — | 943 | ||||||
Life and health insurance commissions | 127 | 170 | 161 | ||||||
Credit life and A&H insurance commissions | 23 | 36 | 30 | ||||||
Other fees and charges | 59 | 29 | 20 | ||||||
Total insurance income | $ | 2,951 | $ | 1,944 | $ | 2,832 |
Three Months Ended | |||||||||
March 31, 2012 | December 31, 2011 | March 31, 2011 | |||||||
(Dollars in thousands) | |||||||||
Overdraft and non-sufficient funds fees | $ | 1,740 | $ | 2,130 | $ | 1,718 | |||
Account maintenance fees | 321 | 350 | 253 | ||||||
Other fees and charges | 176 | 29 | 203 | ||||||
Total deposit account service charges | $ | 2,237 | $ | 2,509 | $ | 2,174 |
Three Months Ended | |||||||||
March 31, 2012 | December 31, 2011 | March 31, 2011 | |||||||
(Dollars in thousands) | |||||||||
Fiduciary | $ | 1,069 | $ | 1,101 | $ | 1,039 | |||
Brokerage | 427 | 328 | 286 | ||||||
Total trust and investment income | $ | 1,496 | $ | 1,429 | $ | 1,325 |
March 31, 2012 | December 31, 2011 | September 30, 2011 | June 30, 2010 | March 31, 2011 | |||||||||||
(Dollars in thousands) | |||||||||||||||
Trust assets under management | $ | 853,444 | $ | 821,659 | $ | 776,165 | $ | 846,052 | $ | 852,972 | |||||
Brokerage assets under management | 284,453 | 262,196 | 249,550 | 265,384 | 260,134 | ||||||||||
Total managed assets | $ | 1,137,897 | $ | 1,083,855 | $ | 1,025,715 | $ | 1,111,436 | $ | 1,113,106 | |||||
Quarterly average | $ | 1,116,327 | $ | 1,061,484 | $ | 1,077,804 | $ | 1,119,484 | $ | 1,105,329 |
Three Months Ended | |||||||||
March 31, 2012 | December 31, 2011 | March 31, 2011 | |||||||
(Dollars in thousands) | |||||||||
Base salaries and wages | $ | 5,148 | $ | 5,619 | $ | 5,276 | |||
Sales-based and incentive compensation | 1,345 | 1,368 | 986 | ||||||
Employee benefits | 1,233 | 1,916 | 945 | ||||||
Stock-based compensation | 226 | 124 | 33 | ||||||
Deferred personnel costs | (435 | ) | (380 | ) | (292 | ) | |||
Payroll taxes and other employment costs | 728 | 698 | 679 | ||||||
Total salaries and employee benefit costs | $ | 8,245 | $ | 9,345 | $ | 7,627 | |||
Full-time equivalent employees: | |||||||||
Actual at end of period | 499 | 513 | 543 | ||||||
Average during the period | 506 | 528 | 538 |
Three Months Ended | |||||||||
March 31, 2012 | December 31, 2011 | March 31, 2011 | |||||||
(Dollars in thousands) | |||||||||
Depreciation | $ | 496 | $ | 488 | $ | 489 | |||
Repairs and maintenance costs | 312 | 418 | 416 | ||||||
Net rent expense | 239 | 217 | 225 | ||||||
Property taxes, utilities and other costs | 385 | 336 | 371 | ||||||
Total net occupancy and equipment expense | $ | 1,432 | $ | 1,459 | $ | 1,501 |
Three months ended | |||||||||||
March 31, | December 31, | March 31, | |||||||||
(Dollars in thousands) | 2012 | 2011 | 2011 | ||||||||
Pre-Provision Net Revenue: | |||||||||||
Income before income taxes | $ | 9,736 | $ | 5,177 | $ | 2,360 | |||||
Add: provision for loan losses | — | — | 5,311 | ||||||||
Add: loss on debt extinguishment | (3,111 | ) | — | — | |||||||
Less: recovery of loan losses | (2,137 | ) | (473 | ) | — | ||||||
Less: net gain on securities transactions | 3,163 | — | 360 | ||||||||
Pre-provision net revenue | $ | 7,547 | $ | 4,704 | $ | 7,311 | |||||
Pre-provision net revenue | 7,547 | 4,704 | 7,311 | ||||||||
Total average assets | 1,806,741 | 1,810,191 | 1,824,727 | ||||||||
Pre-provision net revenue to average assets | 1.68 | % | 1.03 | % | 1.62 | % |
(Dollars in thousands) | March 31, 2012 | December 31, 2011 | September 30, 2011 | June 30, 2011 | March 31, 2011 | ||||||||||
Available for sale securities, at fair value: | |||||||||||||||
Obligations of: | |||||||||||||||
U.S. Treasury and government agencies | $ | 31 | $ | 32 | $ | 34 | $ | 36 | $ | 38 | |||||
U.S. government sponsored agencies | 702 | 13,037 | 13,004 | 12,321 | 12,084 | ||||||||||
States and political subdivisions | 34,175 | 35,745 | 38,112 | 38,091 | 38,401 | ||||||||||
Residential mortgage-backed securities | 522,659 | 527,003 | 539,094 | 540,931 | 523,844 | ||||||||||
Commercial mortgage-backed securities | 36,230 | 37,289 | 36,401 | 35,288 | 41,189 | ||||||||||
Bank-issued trust preferred securities | 12,901 | 12,211 | 12,681 | 13,385 | 13,266 | ||||||||||
Equity securities | 3,338 | 3,254 | 3,333 | 3,546 | 3,318 | ||||||||||
Total fair value | $ | 610,036 | $ | 628,571 | $ | 642,659 | $ | 643,598 | $ | 632,140 | |||||
Total amortized cost | $ | 602,817 | $ | 617,128 | $ | 633,279 | $ | 638,667 | $ | 635,218 | |||||
Net unrealized gain (loss) | $ | 7,219 | $ | 11,443 | $ | 9,380 | $ | 4,931 | $ | (3,078 | ) | ||||
Held to maturity securities, at amortized cost: | |||||||||||||||
Obligations of: | |||||||||||||||
States and political subdivisions | 3,524 | 3,525 | 2,966 | 2,966 | 2,965 | ||||||||||
Residential mortgage-backed securities | 23,902 | 12,776 | — | — | — | ||||||||||
Commercial mortgage-backed securities | 6,872 | — | — | — | — | ||||||||||
Total amortized cost | $ | 34,298 | $ | 16,301 | $ | 2,966 | $ | 2,966 | $ | 2,965 | |||||
Total investment portfolio: | |||||||||||||||
Amortized cost | $ | 637,115 | $ | 633,429 | $ | 636,245 | $ | 641,633 | $ | 638,183 | |||||
Carrying value | $ | 644,334 | $ | 644,872 | $ | 645,625 | $ | 646,564 | $ | 635,105 |
(Dollars in thousands) | March 31, 2012 | December 31, 2011 | September 30, 2011 | June 30, 2011 | March 31, 2011 | ||||||||||
Residential | $ | 52,900 | $ | 58,660 | $ | 68,686 | $ | 87,697 | $ | 101,760 | |||||
Commercial | 1,170 | 1,288 | 1,407 | 1,663 | 2,734 | ||||||||||
Total fair value | $ | 54,070 | $ | 59,948 | $ | 70,093 | $ | 89,360 | $ | 104,494 | |||||
Total amortized cost | $ | 53,125 | $ | 59,148 | $ | 68,690 | $ | 86,747 | $ | 102,295 | |||||
Net unrealized gain | $ | 945 | $ | 800 | $ | 1,403 | $ | 2,613 | $ | 2,199 |
(Dollars in thousands) | March 31, 2012 | December 31, 2011 | September 30, 2011 | June 30, 2011 | March 31, 2011 | ||||||||||
Gross portfolio loans: | |||||||||||||||
Commercial real estate | $ | 394,034 | $ | 410,352 | $ | 424,741 | $ | 411,355 | $ | 413,011 | |||||
Commercial and industrial | 150,431 | 140,857 | 140,058 | 145,625 | 147,825 | ||||||||||
Real estate construction | 43,510 | 30,577 | 26,751 | 29,259 | 38,154 | ||||||||||
Residential real estate | 218,745 | 219,619 | 222,374 | 215,242 | 215,040 | ||||||||||
Home equity lines of credit | 48,067 | 47,790 | 48,085 | 48,148 | 48,281 | ||||||||||
Consumer | 86,965 | 87,531 | 87,072 | 88,345 | 84,078 | ||||||||||
Deposit account overdrafts | 2,351 | 1,780 | 1,712 | 2,145 | 1,640 | ||||||||||
Total portfolio loans | $ | 944,103 | $ | 938,506 | $ | 950,793 | $ | 940,119 | $ | 948,029 | |||||
Percent of loans to total loans: | |||||||||||||||
Commercial real estate | 41.8 | % | 43.7 | % | 44.6 | % | 43.8 | % | 43.5 | % | |||||
Commercial and industrial | 15.9 | % | 15.0 | % | 14.7 | % | 15.5 | % | 15.6 | % | |||||
Real estate construction | 4.6 | % | 3.3 | % | 2.8 | % | 3.1 | % | 4.0 | % | |||||
Residential real estate | 23.2 | % | 23.4 | % | 23.4 | % | 22.9 | % | 22.7 | % | |||||
Home equity lines of credit | 5.1 | % | 5.1 | % | 5.1 | % | 5.1 | % | 5.1 | % | |||||
Consumer | 9.2 | % | 9.3 | % | 9.2 | % | 9.4 | % | 8.9 | % | |||||
Deposit account overdrafts | 0.2 | % | 0.2 | % | 0.2 | % | 0.2 | % | 0.2 | % | |||||
Total percentage | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | |||||
Residential real estate loans being serviced for others | $ | 281,015 | $ | 275,715 | $ | 262,992 | $ | 259,352 | $ | 258,626 |
(Dollars in thousands) | Outstanding Balance | Loan Commitments | Total Exposure | % of Total | |||||||
Real Estate Construction Loans: | |||||||||||
Assisted living facilities and nursing homes | $ | 17,794 | $ | 2,653 | $ | 20,447 | 33.2 | % | |||
Health care facilities | 8,534 | 4,006 | 12,540 | 20.3 | % | ||||||
Apartment complexes | 5,224 | 3,355 | 8,579 | 13.9 | % | ||||||
Restaurants | 3,248 | 183 | 3,431 | 5.6 | % | ||||||
Mixed commercial use facilities - non-owner occupied | 3,204 | 282 | 3,486 | 5.7 | % | ||||||
Other | 5,506 | 7,639 | 13,145 | 21.3 | % | ||||||
Total real estate construction | $ | 43,510 | $ | 18,118 | $ | 61,628 | 100.0 | % |
(Dollars in thousands) | Outstanding Balance | Loan Commitments | Total Exposure | % of Total | |||||||
Commercial Real Estate Loans: | |||||||||||
Lodging and lodging related | $ | 65,115 | $ | 25 | $ | 65,140 | 16.2 | % | |||
Apartment complexes | 51,804 | 327 | 52,131 | 13.0 | % | ||||||
Light industrial facilities: | |||||||||||
Owner occupied | 26,103 | 1,199 | 27,302 | 6.8 | % | ||||||
Non-owner occupied | 9,664 | — | 9,664 | 2.4 | % | ||||||
Total light industrial facilities | 35,767 | 1,199 | 36,966 | 9.2 | % | ||||||
Office buildings and complexes: | |||||||||||
Owner occupied | 6,845 | 77 | 6,922 | 1.7 | % | ||||||
Non-owner occupied | 26,802 | 142 | 26,944 | 6.7 | % | ||||||
Total office buildings and complexes | 33,647 | 219 | 33,866 | 8.4 | % | ||||||
Retail facilities: | |||||||||||
Owner occupied | 11,571 | 98 | 11,669 | 2.9 | % | ||||||
Non-owner occupied | 19,594 | 367 | 19,961 | 5.0 | % | ||||||
Total retail facilities | 31,165 | 465 | 31,630 | 7.9 | % | ||||||
Mixed commercial use facilities: | |||||||||||
Owner occupied | 10,381 | 216 | 10,597 | 2.6 | % | ||||||
Non-owner occupied | 14,251 | 13 | 14,264 | 3.6 | % | ||||||
Total mixed commercial use facilities | 24,632 | 229 | 24,861 | 6.2 | % | ||||||
Assisted living facilities and nursing homes | 20,515 | — | 20,515 | 5.1 | % | ||||||
Day care facilities: | |||||||||||
Owner occupied | 8,239 | 45 | 8,284 | 2.1 | % | ||||||
Non-owner occupied | 11,792 | — | 11,792 | 2.9 | % | ||||||
Total day care facilities | 20,031 | 45 | 20,076 | 5.0 | % | ||||||
Restaurant facilities: | |||||||||||
Owner occupied | 11,263 | 295 | 11,558 | 2.9 | % | ||||||
Non-owner occupied | 2,489 | — | 2,489 | 0.6 | % | ||||||
Total restaurant facilities | 13,752 | 295 | 14,047 | 3.5 | % | ||||||
Other | 97,606 | 4,098 | 101,704 | 25.5 | % | ||||||
Total commercial real estate | $ | 394,034 | $ | 6,902 | $ | 400,936 | 100.0 | % |
(Dollars in thousands) | March 31, 2012 | December 31, 2011 | September 30, 2011 | June 30, 2011 | March 31, 2011 | ||||||||||
Commercial real estate | $ | 17,496 | $ | 18,947 | $ | 20,085 | $ | 19,361 | $ | 19,613 | |||||
Commercial and industrial | 1,457 | 2,434 | 2,363 | 3,069 | 1,734 | ||||||||||
Residential real estate | 1,216 | 1,119 | 1,421 | 1,187 | 1,642 | ||||||||||
Home equity lines of credit | 477 | 541 | 548 | 552 | 444 | ||||||||||
Consumer | 423 | 449 | 574 | 783 | 790 | ||||||||||
Deposit account overdrafts | 180 | 227 | 222 | 214 | 226 | ||||||||||
Total allowance for loan losses | $ | 21,249 | $ | 23,717 | $ | 25,213 | $ | 25,166 | $ | 24,449 | |||||
As a percentage of total loans | 2.25 | % | 2.53 | % | 2.65 | % | 2.68 | % | 2.58 | % |
Three Months Ended | |||||||||||||||
March 31, 2012 | December 31, 2011 | September 30, 2011 | June 30, 2011 | March 31, 2011 | |||||||||||
(Dollars in thousands) | |||||||||||||||
Gross charge-offs: | |||||||||||||||
Commercial real estate | $ | 1,957 | $ | 1,534 | $ | 440 | $ | 2,197 | $ | 7,078 | |||||
Commercial and industrial | — | 29 | 67 | 102 | 835 | ||||||||||
Residential real estate | 207 | 340 | 296 | 756 | 201 | ||||||||||
Real estate construction | — | — | — | — | — | ||||||||||
Home equity lines of credit | 71 | 21 | 15 | 83 | 247 | ||||||||||
Consumer | 214 | 252 | 229 | 175 | 283 | ||||||||||
Deposit account overdrafts | 122 | 176 | 195 | 157 | 136 | ||||||||||
Total gross charge-offs | 2,571 | 2,352 | 1,242 | 3,470 | 8,780 | ||||||||||
Recoveries: | |||||||||||||||
Commercial real estate | 1,606 | 1,016 | 93 | 1,045 | 315 | ||||||||||
Commercial and industrial | 48 | 101 | 83 | 487 | 59 | ||||||||||
Residential real estate | 304 | 38 | 29 | 126 | 443 | ||||||||||
Real estate construction | — | — | — | — | — | ||||||||||
Home equity lines of credit | 7 | 14 | 11 | 16 | 10 | ||||||||||
Consumer | 188 | 126 | 170 | 168 | 222 | ||||||||||
Deposit account overdrafts | 87 | 34 | 38 | 50 | 103 | ||||||||||
Total recoveries | 2,240 | 1,329 | 424 | 1,892 | 1,152 | ||||||||||
Net charge-offs (recoveries): | |||||||||||||||
Commercial real estate | 351 | 518 | 347 | 1,152 | 6,763 | ||||||||||
Commercial and industrial | (48 | ) | (72 | ) | (16 | ) | (385 | ) | 776 | ||||||
Residential real estate | (97 | ) | 302 | 267 | 630 | (242 | ) | ||||||||
Real estate construction | — | — | — | — | — | ||||||||||
Home equity lines of credit | 64 | 7 | 4 | 67 | 237 | ||||||||||
Consumer | 26 | 126 | 59 | 7 | 61 | ||||||||||
Deposit account overdrafts | 35 | 142 | 157 | 107 | 33 | ||||||||||
Total net charge-offs | $ | 331 | $ | 1,023 | $ | 818 | $ | 1,578 | $ | 7,628 | |||||
Ratio of net charge-offs to average loans (annualized): | |||||||||||||||
Commercial real estate | 0.15 | % | 0.22 | % | 0.15 | % | 0.49 | % | 2.84 | % | |||||
Commercial and industrial | (0.02 | )% | (0.03 | )% | (0.01 | )% | (0.16 | )% | 0.33 | % | |||||
Residential real estate | (0.04 | )% | 0.13 | % | 0.11 | % | 0.27 | % | (0.10 | )% | |||||
Real estate construction | — | % | — | % | — | % | — | % | — | % | |||||
Home equity lines of credit | 0.03 | % | — | % | — | % | 0.03 | % | 0.10 | % | |||||
Consumer | 0.01 | % | 0.05 | % | 0.02 | % | — | % | 0.03 | % | |||||
Deposit account overdrafts | 0.01 | % | 0.06 | % | 0.07 | % | 0.04 | % | 0.01 | % | |||||
Total | 0.14 | % | 0.43 | % | 0.34 | % | 0.67 | % | 3.21 | % |
(Dollars in thousands) | March 31, 2012 | December 31, 2011 | September 30, 2011 | June 30, 2011 | March 31, 2011 | ||||||||||
Loans 90+ days past due and accruing: | |||||||||||||||
Commercial real estate | $ | — | $ | — | $ | — | $ | — | $ | — | |||||
Commercial and industrial | — | — | 20 | — | 37 | ||||||||||
Residential real estate | — | — | 126 | 124 | — | ||||||||||
Total | — | — | 146 | 124 | 37 | ||||||||||
Nonaccrual loans: | |||||||||||||||
Commercial real estate | 12,906 | 20,587 | 22,657 | 27,455 | 27,934 | ||||||||||
Commercial and industrial | 1,949 | 2,262 | 2,468 | 1,325 | 1,536 | ||||||||||
Residential real estate | 3,805 | 3,440 | 3,996 | 1,784 | 1,906 | ||||||||||
Real estate construction | — | — | — | — | — | ||||||||||
Home equity | 200 | 349 | 271 | 283 | 361 | ||||||||||
Consumer | — | — | 2 | — | — | ||||||||||
Total | 18,860 | 26,638 | 29,394 | 30,847 | 31,737 | ||||||||||
Troubled debt restructurings: | |||||||||||||||
Commercial real estate | 1,302 | 2,959 | 3,001 | — | — | ||||||||||
Residential real estate | 330 | 425 | 562 | 574 | 585 | ||||||||||
Total | 1,632 | 3,384 | 3,563 | 574 | 585 | ||||||||||
Total nonperforming loans (NPLs) | 20,492 | 30,022 | 33,103 | 31,545 | 32,359 | ||||||||||
Other real estate owned (OREO) | |||||||||||||||
Commercial | 869 | 2,194 | 3,552 | 3,546 | 4,220 | ||||||||||
Residential | — | — | 115 | — | 180 | ||||||||||
Total | 869 | 2,194 | 3,667 | 3,546 | 4,400 | ||||||||||
Total nonperforming assets (NPAs) | $ | 21,361 | $ | 32,216 | $ | 36,770 | $ | 35,091 | $ | 36,759 | |||||
NPLs as a percent of total loans | 2.16 | % | 3.19 | % | 3.47 | % | 3.35 | % | 3.41 | % | |||||
NPAs as a percent of total assets | 1.18 | % | 1.80 | % | 2.04 | % | 1.95 | % | 2.04 | % | |||||
NPAs as a percent of gross loans and OREO | 2.25 | % | 3.41 | % | 3.84 | % | 3.71 | % | 3.85 | % | |||||
Allowance for loan losses as a percent of NPLs | 103.69 | % | 79.00 | % | 76.16 | % | 79.78 | % | 75.56 | % |
(Dollars in thousands) | March 31, 2012 | December 31, 2011 | September 30, 2011 | June 30, 2011 | March 31, 2011 | ||||||||||
Interest-bearing deposits: | |||||||||||||||
Retail certificates of deposit | $ | 392,503 | $ | 411,247 | $ | 415,190 | $ | 421,167 | $ | 420,828 | |||||
Money market deposit accounts | 255,907 | 268,410 | 254,012 | 264,677 | 270,574 | ||||||||||
Governmental/public funds | 161,798 | 122,916 | 140,357 | 150,319 | 149,961 | ||||||||||
Savings accounts | 155,097 | 138,383 | 132,182 | 133,352 | 132,323 | ||||||||||
Interest-bearing demand accounts | 110,731 | 106,233 | 100,770 | 99,324 | 97,561 | ||||||||||
Total retail interest-bearing deposits | 1,076,036 | 1,047,189 | 1,042,511 | 1,068,839 | 1,071,247 | ||||||||||
Brokered certificates of deposits | 54,069 | 64,054 | 64,470 | 67,912 | 70,522 | ||||||||||
Total interest-bearing deposits | 1,130,105 | 1,111,243 | 1,106,981 | 1,136,751 | 1,141,769 | ||||||||||
Non-interest-bearing deposits | 268,444 | 239,837 | 235,585 | 222,075 | 219,175 | ||||||||||
Total deposits | $ | 1,398,549 | $ | 1,351,080 | $ | 1,342,566 | $ | 1,358,826 | $ | 1,360,944 |
(Dollars in thousands) | March 31, 2012 | December 31, 2011 | September 30, 2011 | June 30, 2011 | March 31, 2011 | ||||||||||
Short-term borrowings: | |||||||||||||||
FHLB advances | $ | — | $ | 8,500 | $ | 17,300 | $ | — | $ | — | |||||
Retail repurchase agreements | 44,905 | 43,143 | 41,255 | 39,254 | 42,283 | ||||||||||
Total short-term borrowings | 44,905 | 51,643 | 58,555 | 39,254 | 42,283 | ||||||||||
Long-term borrowings: | |||||||||||||||
FHLB advances | 66,652 | 77,312 | 78,970 | 86,703 | 86,907 | ||||||||||
National market repurchase agreements | 40,000 | 65,000 | 65,000 | 65,000 | 65,000 | ||||||||||
Total long-term borrowings | 106,652 | 142,312 | 143,970 | 151,703 | 151,907 | ||||||||||
Subordinated notes held by subsidiary trust | 22,609 | 22,600 | 22,592 | 22,583 | 22,574 | ||||||||||
Total borrowed funds | $ | 174,166 | $ | 216,555 | $ | 225,117 | $ | 213,540 | $ | 216,764 |
(Dollars in thousands) | March 31, 2012 | December 31, 2011 | September 30, 2011 | June 30, 2011 | March 31, 2011 | ||||||||||
Capital Amounts: | |||||||||||||||
Tier 1 common | $ | 153,180 | $ | 142,521 | $ | 139,828 | $ | 136,842 | $ | 133,891 | |||||
Tier 1 | 175,789 | 165,121 | 180,294 | 177,287 | 174,314 | ||||||||||
Total (Tier 1 and Tier 2) | 190,694 | 180,053 | 195,485 | 192,663 | 189,672 | ||||||||||
Net risk-weighted assets | $ | 1,108,633 | $ | 1,111,443 | $ | 1,127,976 | $ | 1,135,234 | $ | 1,142,758 | |||||
Capital Ratios: | |||||||||||||||
Tier 1 common | 13.82 | % | 12.82 | % | 12.40 | % | 12.05 | % | 11.72 | % | |||||
Tier 1 | 15.86 | % | 14.86 | % | 15.98 | % | 15.62 | % | 15.25 | % | |||||
Total (Tier 1 and Tier 2) | 17.20 | % | 16.20 | % | 17.33 | % | 16.97 | % | 16.60 | % | |||||
Leverage ratio | 10.05 | % | 9.45 | % | 10.37 | % | 10.10 | % | 9.81 | % |
(Dollars in thousands) | March 31, 2012 | December 31, 2011 | September 30, 2011 | June 30, 2011 | March 31, 2011 | ||||||||||
Tangible Equity: | |||||||||||||||
Total stockholders' equity, as reported | $ | 208,666 | $ | 206,657 | $ | 224,530 | $ | 218,527 | $ | 210,485 | |||||
Less: goodwill and other intangible assets | 64,429 | 64,475 | 64,489 | 64,602 | 64,765 | ||||||||||
Tangible equity | $ | 144,237 | $ | 142,182 | $ | 160,041 | $ | 153,925 | $ | 145,720 | |||||
Tangible Common Equity: | |||||||||||||||
Tangible equity | $ | 144,237 | $ | 142,182 | $ | 160,041 | $ | 153,925 | $ | 145,720 | |||||
Less: preferred stockholders' equity | — | — | 17,875 | 17,862 | 17,850 | ||||||||||
Tangible common equity | $ | 144,237 | $ | 142,182 | $ | 142,166 | $ | 136,063 | $ | 127,870 | |||||
Tangible Assets: | |||||||||||||||
Total assets, as reported | $ | 1,805,923 | $ | 1,794,161 | $ | 1,805,743 | $ | 1,802,703 | $ | 1,801,590 | |||||
Less: goodwill and other intangible assets | 64,429 | 64,475 | 64,489 | 64,602 | 64,765 | ||||||||||
Tangible assets | $ | 1,741,494 | $ | 1,729,686 | $ | 1,741,254 | $ | 1,738,101 | $ | 1,736,825 | |||||
Tangible Book Value per Share: | |||||||||||||||
Tangible common equity | $ | 144,237 | $ | 142,182 | $ | 142,166 | $ | 136,063 | $ | 127,870 | |||||
Common shares outstanding | 10,521,548 | 10,507,124 | 10,489,400 | 10,478,149 | 10,474,507 | ||||||||||
Tangible book value per share | $ | 13.71 | $ | 13.53 | $ | 13.55 | $ | 12.99 | $ | 12.21 | |||||
(Dollars in thousands) | March 31, 2012 | December 31, 2011 | September 30, 2011 | June 30, 2011 | March 31, 2011 | ||||||||||
Tangible Equity to Tangible Assets Ratio: | |||||||||||||||
Tangible equity | $ | 144,237 | $ | 142,182 | $ | 160,041 | $ | 153,925 | $ | 145,720 | |||||
Tangible assets | $ | 1,741,494 | $ | 1,729,686 | $ | 1,741,254 | $ | 1,738,101 | $ | 1,736,825 | |||||
Tangible equity to tangible assets | 8.28 | % | 8.22 | % | 9.19 | % | 8.86 | % | 8.39 | % | |||||
Tangible Common Equity to Tangible Assets Ratio: | |||||||||||||||
Tangible common equity | $ | 144,237 | $ | 142,182 | $ | 142,166 | $ | 136,063 | $ | 127,870 | |||||
Tangible assets | $ | 1,741,494 | $ | 1,729,686 | $ | 1,741,254 | $ | 1,738,101 | $ | 1,736,825 | |||||
Tangible common equity to tangible assets | 8.28 | % | 8.22 | % | 8.16 | % | 7.83 | % | 7.36 | % |
Increase in Interest Rate | Estimated Increase in Net Interest Income | Estimated (Decrease) Increase in Economic Value of Equity | |||||||||||||||||||||||
(in Basis Points) | March 31, 2012 | December 31, 2011 | March 31, 2012 | December 31, 2011 | |||||||||||||||||||||
300 | $ | 9,579 | 18.7 | % | $ | 7,061 | 13.9 | % | $ | (10,152 | ) | (4.7 | )% | $ | (8,855 | ) | (4.1 | )% | |||||||
200 | 7,700 | 15.0 | % | 6,250 | 12.3 | % | (615 | ) | (0.3 | )% | 2,036 | 0.9 | % | ||||||||||||
100 | 5,112 | 10.0 | % | 4,548 | 9.0 | % | 5,207 | 2.4 | % | 7,728 | 3.6 | % |
(Dollars in thousands) | March 31, 2012 | December 31, 2011 | September 30, 2011 | June 30, 2011 | March 31, 2011 | ||||||||||
Home equity lines of credit | $ | 40,499 | $ | 44,850 | $ | 44,481 | $ | 39,758 | $ | 40,293 | |||||
Unadvanced construction loans | 18,118 | 10,023 | 11,954 | 16,026 | 16,418 | ||||||||||
Other loan commitments | 112,436 | 135,110 | 119,738 | 106,311 | 111,720 | ||||||||||
Loan commitments | 171,053 | 189,983 | 176,173 | 162,095 | 168,431 | ||||||||||
Standby letters of credit | $ | 39,862 | $ | 40,821 | $ | 41,269 | $ | 41,198 | $ | 41,553 |
(a) | information required to be disclosed by Peoples in this Quarterly Report on Form 10-Q and other reports Peoples files or submits under the Exchange Act would be accumulated and communicated to Peoples’ management, including its President and Chief Executive Officer and its Executive Vice President, Chief Financial Officer and Treasurer, as appropriate to allow timely decisions regarding required disclosure; |
(b) | information required to be disclosed by Peoples in this Quarterly Report on Form 10-Q and other reports Peoples files or submits under the Exchange Act would be recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms; and |
(c) | Peoples’ disclosure controls and procedures were effective as of the end of the fiscal quarter covered by this Quarterly Report on Form 10-Q. |
Period | (a) Total Number of Common Shares Purchased | (b) Average Price Paid per Share | (c) Total Number of Common Shares Purchased as Part of Publicly Announced Plans or Programs (1) | (d) Maximum Number of Common Shares that May Yet Be Purchased Under the Plans or Programs (1) | |||||||
January 1 - 31, 2012 | 163 | (2) | $ | 15.27 | (2) | — | — | ||||
February 1 - 29, 2012 | 845 | (2) | $ | 16.57 | (2) | — | — | ||||
March 1 - 31, 2012 | 312 | (2) | $ | 17.60 | (2) | — | — | ||||
Total | 1,320 | $ | 16.65 | — | — |
(1) | Peoples’ Board of Directors has not authorized any stock repurchase plans or programs for 2012, due in part to the restrictions on stock repurchases imposed by the terms of the TARP Capital Investment. |
(2) | Information reflects solely common shares purchased in open market transactions by Peoples Bank under the Rabbi Trust Agreement establishing a rabbi trust holding assets to provide funds for the payment of the benefits under the Peoples Bancorp Inc. Second Amended and Restated Deferred Compensation Plan for Directors of Peoples Bancorp Inc. and Subsidiaries. |
PEOPLES BANCORP INC. | ||||
Date: | April 26, 2012 | By: /s/ | CHARLES W. SULERZYSKI | |
Charles W. Sulerzyski | ||||
President and Chief Executive Officer | ||||
Date: | April 26, 2012 | By: /s/ | EDWARD G. SLOANE | |
Edward G. Sloane | ||||
Executive Vice President, | ||||
Chief Financial Officer and Treasurer | ||||
EXHIBIT INDEX | ||||
PEOPLES BANCORP INC. QUARTERLY REPORT ON FORM 10-Q FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2012 | ||||
Exhibit Number | Description | Exhibit Location | ||
3.1(a) | Amended Articles of Incorporation of Peoples Bancorp Inc. (as filed with the Ohio Secretary of State on May 3, 1993) | Incorporated herein by reference to Exhibit 3(a) to the Registration Statement on Form 8-B of Peoples Bancorp Inc. (“Peoples”) filed July 20, 1993 (File No. 0-16772) | ||
3.1(b) | Certificate of Amendment to the Amended Articles of Incorporation of Peoples Bancorp Inc. (as filed with the Ohio Secretary of State on April 22, 1994) | Incorporated herein by reference to Exhibit 3(a)(2) to Peoples’ Annual Report on Form 10-K for the fiscal year ended December 31, 1997 (File No. 0-16772) (“Peoples’ 1997 Form 10-K”) | ||
3.1(c) | Certificate of Amendment to the Amended Articles of Incorporation of Peoples Bancorp Inc. (as filed with the Ohio Secretary of State on April 9, 1996) | Incorporated herein by reference to Exhibit 3(a)(3) to Peoples’ 1997 Form 10-K | ||
3.1(d) | Certificate of Amendment to the Amended Articles of Incorporation of Peoples Bancorp Inc. (as filed with the Ohio Secretary of State on April 23, 2003) | Incorporated herein by reference to Exhibit 3(a) to Peoples’ Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2003 (File No. 0-16772) (“Peoples’ March 31, 2003 Form 10-Q”) | ||
3.1(e) | Certificate of Amendment by Shareholders or Members to the Amended Articles of Incorporation of Peoples Bancorp Inc. (as filed with the Ohio Secretary of State on January 22, 2009) | Incorporated herein by reference to Exhibit 3.1 to Peoples’ Current Report on Form 8-K dated and filed on January 23, 2009 (File No. 0-16772) | ||
3.1(f) | Certificate of Amendment by Directors or Incorporators to Articles filed with the Secretary of State of the State of Ohio on January 28, 2009, evidencing adoption of amendments by the Board of Directors of Peoples Bancorp Inc. to Article FOURTH of Amended Articles of Incorporation to establish express terms of Fixed Rate Cumulative Perpetual Preferred Shares, Series A, each without par value, of Peoples Bancorp Inc. | Incorporated herein by reference to Exhibit 3.1 to Peoples’ Current Report on Form 8-K dated and filed on February 2, 2009 (File No. 0-16772) (“Peoples’ February 2, 2009 Form 8-K”) | ||
3.1(g) | Amended Articles of Incorporation of Peoples Bancorp Inc. (reflecting amendments through January 28, 2009) [For SEC reporting compliance purposes only – not filed with Ohio Secretary of State] | Incorporated herein by reference to Exhibit 3.1(g) to Peoples’ Annual Report on Form 10-K for the fiscal year ended December 31, 2008 (File No. 0-16772) | ||
3.2(a) | Code of Regulations of Peoples Bancorp Inc. | Incorporated herein by reference to Exhibit 3(b) to Peoples’ Registration Statement on Form 8-B filed July 20, 1993 (File No. 0-16772) | ||
3.2(b) | Certified Resolutions Regarding Adoption of Amendments to Sections 1.03, 1.04, 1.05, 1.06, 1.08, 1.10, 2.03(C), 2.07, 2.08, 2.10 and 6.02 of the Code of Regulations of Peoples Bancorp Inc. by shareholders on April 10, 2003 | Incorporated herein by reference to Exhibit 3(c) to Peoples’ March 31, 2003 Form 10-Q | ||
3.2(c) | Certificate regarding adoption of amendments to Sections 3.01, 3.03, 3.04, 3.05, 3.06, 3.07, 3.08 and 3.11 of the Code of Regulations of Peoples Bancorp Inc. by shareholders on April 8, 2004 | Incorporated herein by reference to Exhibit 3(a) to Peoples’ Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2004 (File No. 0-16772) | ||
3.2(d) | Certificate regarding adoption of amendments to Sections 2.06, 2.07, 3.01 and 3.04 of Peoples Bancorp Inc.’s Code of Regulations by the shareholders on April 13, 2006 | Incorporated herein by reference to Exhibit 3.1 to Peoples’ Current Report on Form 8-K dated and filed on April 14, 2006 (File No. 0-16772) | ||
3.2(e) | Certificate regarding adoption of amendments to Section 2.01 of Peoples Bancorp Inc.’s Code of Regulations by the shareholders on April 22, 2010 | Incorporated herein by reference to Exhibit 3.2(e) to Peoples’ Quarterly Report on Form 10-Q/A (Amendment No. 1) for the quarterly period ended June 30, 2010 (File No. 0-16772) ("Peoples' June 30, 2010 Form 10-Q/A") |
EXHIBIT INDEX | ||||
PEOPLES BANCORP INC. QUARTERLY REPORT ON FORM 10-Q FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2012 | ||||
Exhibit Number | Description | Exhibit Location | ||
3.2(f) | Code of Regulations of Peoples Bancorp Inc. (reflecting amendments through April 22, 2010) [For SEC reporting compliance purposes only] | Incorporated herein by reference to Exhibit 3.2(f) to Peoples’ June 30, 2010 Form 10-Q/A" | ||
4.1 | Warrant to purchase 313,505 Shares of Common Stock (common shares) of Peoples Bancorp Inc., issued to the United States Department of the Treasury on January 30, 2009 | Incorporated herein by reference to Exhibit 4.1 to Peoples’ February 2, 2009 Form 8-K | ||
4.2 | Letter Agreement, dated January 30, 2009, including Securities Purchase Agreement – Standard Terms attached thereto as Exhibit A, between Peoples Bancorp Inc. and the United States Department of the Treasury [NOTE: Exhibit A to the Securities Purchase Agreement is not included therewith; filed as Exhibit 3.1 to Peoples’ February 2, 2009 Form 8-K and incorporated by reference at Exhibit 3.1(f) to this Quarterly Report on Form 10-Q] | Incorporated herein by reference to Exhibit 10.1 to Peoples’ February 2, 2009 Form 8-K | ||
4.3 | Letter Agreement, dated February 2, 2011, between Peoples Bancorp Inc. and the United States Department of the Treasury related to the repurchase of 21,000 of the Fixed Rate Cumulative Preferred Stock, Series A issued by Peoples Bancorp Inc. to the United States Department of the Treasury | Incorporated herein by reference to Exhibit 10.1 to Peoples' Current Report on Form 8-K dated and filed February 4, 2011 (File No. 0-16772). | ||
4.4 | Letter Agreement, dated December 28, 2011, between Peoples Bancorp Inc. and the United States Department of the Treasury related to the repurchase of 18,000 of the Fixed Rate Cumulative Preferred Stock, Series A issued by Peoples Bancorp Inc. to the United States Department of the Treasury | Incorporated herein by reference to Exhibit 10.1 to Peoples' Current Report on Form 8-K dated and filed December 29, 2011 (File No. 0-16772). | ||
4.4 | Letter Agreement, dated February 15, 2012, between Peoples Bancorp Inc. and the United States Department of the Treasury related to the repurchase of the Warrant to purchase 313,505 shares of common stock of Peoples Bancorp Inc. to the United States Department of the Treasury | Incorporated herein by reference to Exhibit 10.1 to Peoples' Current Report on Form 8-K dated and filed February 16, 2012 (File No. 0-16772). | ||
10.1 | Summary of Incentive Plan for Executive Officers and other employees of Peoples Bancorp Inc. [effective for the fiscal year beginning January 1, 2012] | Incorporated herein by reference to Exhibit 10.2(c) to Peoples' Annual Report on Form 10-K for the fiscal year ended December 31, 2011 (File No. 0-16772) ("Peoples' 2011 Form 10-K") | ||
10.2 | Summary of Long Term Incentive Plan for Executive Officers and other employees of Peoples Bancorp Inc. [Effective for the fiscal year beginning January 1, 2012] | Incorporated herein by reference to Exhibit 10.2(d) to Peoples' 2011 Form 10-K. | ||
10.3 | Summary of Base Salaries for Executive Officers of Peoples Bancorp Inc. | Incorporated herein by reference to Exhibit 10.2(d) to Peoples' 2011 Form 10-K. | ||
10.4 | Form of Peoples Bancorp Inc. 2006 Equity Plan Performance-Based Restricted Stock Agreement for executives used and to be used to evidence awards of performance-based restricted stock granted to executives of Peoples Bancorp Inc. | Incorporated herein by reference to Exhibit 10.2(d) to Peoples' 2011 Form 10-K. | ||
10.5 | Form of Peoples Bancorp Inc. 2006 Equity Plan Performance-Based Restricted Stock Agreement for employees used and to be used to evidence awards of performance-based restricted stock granted to employees of Peoples Bancorp Inc. | Incorporated herein by reference to Exhibit 10.2(d) to Peoples' 2011 Form 10-K. | ||
10.6 | Form of Peoples Bancorp Inc. 2006 Equity Plan Time-Based Restricted Stock Agreement for executives used and to be used to evidence awards of performance-based restricted stock granted to executives of Peoples Bancorp Inc. | Incorporated herein by reference to Exhibit 10.2(d) to Peoples' 2011 Form 10-K. | ||
EXHIBIT INDEX | ||||
PEOPLES BANCORP INC. QUARTERLY REPORT ON FORM 10-Q FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2012 | ||||
Exhibit Number | Description | Exhibit Location | ||
10.7 | Form of Peoples Bancorp Inc. 2006 Equity Plan Time-Based Restricted Stock Agreement for employees used and to be used to evidence awards of performance-based restricted stock granted to employees of Peoples Bancorp Inc. | Incorporated herein by reference to Exhibit 10.2(d) to Peoples' 2011 Form 10-K. | ||
12 | Statements regarding Computation of Consolidated Ratios of Earnings to Combined Fixed Charges and Preferred Stock Dividends Appearing in Quarterly Report on Form 10-Q | Filed herewith | ||
31.1 | Rule 13a-14(a)/15d-14(a) Certifications [President and Chief Executive Officer] | Filed herewith | ||
31.2 | Rule 13a-14(a)/15d-14(a) Certifications [Executive Vice President, Chief Financial Officer and Treasurer] | Filed herewith | ||
32 | Section 1350 Certifications | Furnished herewith | ||
101.INS | XBRL Instance Document | Submitted electronically herewith # | ||
101.SCH | XBRL Taxonomy Extension Schema Document | Submitted electronically herewith # | ||
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document | Submitted electronically herewith # | ||
101.LAB | XBRL Taxonomy Extension Label Linkbase Document | Submitted electronically herewith # | ||
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document | Submitted electronically herewith # | ||
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document | Submitted electronically herewith # | ||
# Attached as Exhibit 101 to the Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2012 of Peoples Bancorp Inc. are the following documents formatted in XBRL (eXtensive Business Reporting Language): (i) Consolidated Balance Sheets (unaudited) at March 31, 2012 and December 31, 2011; (ii) Consolidated Statements of Income (unaudited) for the three months ended March 31, 2012 and 2011; (iii) Consolidated Statement of Stockholders' Equity (unaudited) for the three months ended March 31, 2012; (ix) Condensed Consolidated Statements of Cash Flows (unaudited) for the three months ended March 31, 2012 and 2011; and (v) Notes to the Unaudited Consolidated Financial Statements. | ||||
In accordance with Rule 406T of SEC Regulation S-T, the XBRL related documents in Exhibit 101 to this Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2012 are deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, are deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and otherwise are not subject to liability under these Sections. |
For the Three Months Ended | ||||||
March 31, | ||||||
(Dollars in thousands) | 2012 | 2011 | ||||
Excluding Interest on Deposits: | ||||||
Earnings: | ||||||
Income before income taxes | $ | 9,736 | $ | 2,360 | ||
Fixed charges (excluding preferred stock dividends) | 1,716 | 1,914 | ||||
Total earnings | 11,452 | 4,274 | ||||
Fixed charges: | ||||||
Interest expense (excluding deposit interest) | 1,633 | 1,837 | ||||
Rent expense interest factor (1) | 82 | 77 | ||||
Preferred stock dividends (2) | — | 523 | ||||
Total fixed charges (excluding deposit interest) | 1,715 | 2,437 | ||||
Ratio of Earnings to Fixed Charges, | ||||||
Excluding Interest on Deposits | 6.68 | 1.75 | ||||
Including Interest on Deposits: | ||||||
Earnings: | ||||||
Income before income taxes | $ | 9,736 | $ | 2,360 | ||
Fixed charges (excluding preferred stock dividends) | 4,263 | 5,899 | ||||
Total earnings | 13,999 | 8,259 | ||||
Fixed charges: | ||||||
Interest expense (including deposit interest) | 4,180 | 5,822 | ||||
Rent expense interest factor (1) | 82 | 77 | ||||
Preferred stock dividends (2) | — | 523 | ||||
Total fixed charges (including deposit interest) | 4,262 | 6,422 | ||||
Ratio of Earnings to Fixed Charges, | ||||||
Including Interest on Deposits | 3.28 | 1.29 |
(1) | Represents one-third of gross rental expense, which management believes is representative of the interest factor. |
(2) | Represents the dividends accrued on the Series A Preferred Shares during the period. |
1. | I have reviewed this Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2012, of Peoples Bancorp Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent functions): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
Date: | April 26, 2012 | By:/s/ | CHARLES W. SULERZYSKI | |
Charles W. Sulerzyski | ||||
President and Chief Executive Officer |
1. | I have reviewed this Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2012, of Peoples Bancorp Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent functions): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
Date: | April 26, 2012 | By:/s/ | EDWARD G. SLOANE | |
Edward G. Sloane | ||||
Executive Vice President, | ||||
Chief Financial Officer and Treasurer |
(1) | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and |
(2) | The information contained in the Report fairly presents, in all material respects, the consolidated financial condition and results of operations of Peoples Bancorp and its subsidiaries. |
Date: | April 26, 2012 | By:/s/ | CHARLES W. SULERZYSKI | |
Charles W. Sulerzyski | ||||
President and Chief Executive Officer |
Date: | April 26, 2012 | By:/s/ | EDWARD G. SLOANE | |
Edward G. Sloane | ||||
Executive Vice President, | ||||
Chief Financial Officer and Treasurer |
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