8-K 1 a8kjan2017confcallscriptan.htm 8-K Document


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

FORM 8-K

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

Date of Report (Date of earliest event reported): February 2, 2017 (January 27, 2017)

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

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

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

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

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


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

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








Item 2.02     Results of Operations and Financial Condition

On January 27, 2017, management of Peoples Bancorp Inc. (“Peoples”) conducted a facilitated conference call at approximately 10:00 a.m., Eastern Daylight Time, to discuss results of operations for the quarter and year ended December 31, 2016. A replay of the conference call audio will be available on Peoples’ website, www.peoplesbancorp.com, in the “Investor Relations” section for one year. A copy of the transcript of the conference call is included as Exhibit 99 to this Current Report on Form 8-K.
The information contained in this Item 2.02 and Exhibit 99 included with this Current Report on Form 8-K, is being furnished pursuant to Item 2.02 and shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section, nor shall such information be deemed to be incorporated by reference in any registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as otherwise stated in such filing.
During the conference call, management referred to non-Generally Accepted Accounting Principles ("GAAP") financial measures that are used by management to provide information useful to investors in understanding Peoples' operating performance and trends, and to facilitate comparisons with the performance of Peoples' peers. The following tables show the differences between the non-GAAP financial measures referred to during the conference call and the most directly comparable GAAP-based financial measures.








NON-GAAP FINANCIAL MEASURES
 
Three Months Ended
 
Year Ended
 
December 31,
 
September 30,
 
December 31,
 
December 31,
(in $000’s)
2016
 
2016
 
2015
 
2016
 
2015
 
 
 
 
 
 
 
 
 
 
Core non-interest income:
 
 
 
 
 
 
 
 
 
Total non-interest income
$
12,111

 
$
13,538

 
$
12,101

 
$
51,070

 
$
47,441

Plus: System upgrade revenue waived
85

 
—

 
—

 
85

 
—

Core non-interest income
$
12,196

 
$
13,538

 
$
12,101

 
$
51,155

 
$
47,441


 
Three Months Ended
 
Year Ended
 
December 31,
 
September 30,
 
December 31,
 
December 31,
(in $000’s)
2016
 
2016
 
2015
 
2016
 
2015
 
 
 
 
 
 
 
 
 
 
Core non-interest expenses:
 
 
 
 
 
 
 
 
 
Total non-interest expense
$
27,282

 
$
26,842

 
$
27,277

 
$
106,911

 
$
115,081

Less: System upgrade costs
746

 
423

 
—

 
1,259

 
—

Less: acquisition-related costs
—

 
—

 
838

 
—

 
10,722

Less: pension settlement charges
—

 
—

 
5

 
—

 
459

Less: other non-core charges
—

 
—

 
407

 
—

 
592

Core non-interest expenses
$
26,536

 
$
26,419

 
$
26,027

 
$
105,652

 
$
103,308


 
Three Months Ended
 
Year Ended
 
December 31,
 
September 30,
 
December 31,
 
December 31,
(in $000’s)
2016
 
2016
 
2015
 
2016
 
2015
 
 
 
 
 
 
 
 
 
 
Efficiency ratio:
 
 
 
 
 
 
 
 
 
Total non-interest expense
$
27,282

 
$
26,842

 
$
27,277

 
$
106,911

 
$
115,081

Less: Amortization of other intangible assets
1,007

 
1,008

 
1,133

 
4,030

 
4,077

Adjusted non-interest expense
26,275

 
25,834

 
26,144

 
102,881

 
111,004

 
 
 
 
 
 
 
 
 
 
Total non-interest income
12,111

 
13,538

 
12,101

 
51,070

 
47,441

 
 
 
 
 
 
 
 
 
 
Net interest income
26,667

 
26,123

 
25,864

 
104,865

 
97,612

Add: Fully tax-equivalent adjustment
517

 
497

 
515

 
2,027

 
1,978

Net interest income on a fully taxable-equivalent basis
27,184

 
26,620

 
26,379

 
106,892

 
99,590

 
 
 
 
 
 
 
 
 
 
Adjusted revenue
$
39,295

 
$
40,158

 
$
38,480

 
$
157,962

 
$
147,031

 
 
 
 
 
 
 
 
 
 
Efficiency ratio
66.87
%
 
64.33
%
 
67.94
%
 
65.13
%
 
75.50
%
 
 
 
 
 
 
 
 
 
 
Efficiency ratio adjusted for non-core items:
 
 
 
 
 
 
 
 
Core non-interest expenses
$
26,536

 
$
26,419

 
$
26,027

 
$
105,652

 
$
103,308

Less: Amortization of other intangible assets
1,007

 
1,008

 
1,133

 
4,030

 
4,077

Adjusted non-interest expense
25,529

 
25,411

 
24,894

 
101,622

 
99,231

 
 
 
 
 
 
 
 
 
 
Core non-interest income
$
12,196

 
$
13,538

 
$
12,101

 
$
51,155

 
$
47,441

Net interest income on a fully taxable-equivalent basis
27,184

 
26,620

 
26,379

 
106,892

 
99,590

 
 
 
 
 
 
 
 
 
 
Adjusted core revenue
$
39,380

 
$
40,158

 
$
38,480

 
$
158,047

 
$
147,031

 
 
 
 
 
 
 
 
 
 
Efficiency ratio adjusted for non-core items
64.83
%
 
63.28
%
 
64.69
%
 
64.30
%
 
67.49
%





 
At or For the Three Months Ended
 
December 31,
 
September 30,
 
June 30,
 
March 31,
 
December 31,
(in $000’s)
2016
 
2016
 
2016
 
2016
 
2015
 
 
 
 
 
 
 
 
 
 
Tangible Equity:
 
 
 
 
 
 
 
 
 
Total stockholders' equity, as reported
$
435,261

 
$
440,637

 
$
437,753

 
$
428,486

 
$
419,789

Less: goodwill and other intangible assets
146,018

 
147,005

 
147,971

 
148,997

 
149,617

Tangible equity
$
289,243

 
$
293,632

 
$
289,782

 
$
279,489

 
$
270,172

 
 
 
 
 
 
 
 
 
 
Tangible Assets:
 
 
 
 
 
 
 
 
 
Total assets, as reported
$
3,432,348

 
$
3,363,585

 
$
3,333,455

 
$
3,294,929

 
$
3,258,970

Less: goodwill and other intangible assets
146,018

 
147,005

 
147,971

 
148,997

 
149,617

Tangible assets
$
3,286,330

 
$
3,216,580

 
$
3,185,484

 
$
3,145,932

 
$
3,109,353

 
 
 
 
 
 
 
 
 
 
Tangible Book Value per Common Share:
 
 
 
 
 
 
 
 
 
Tangible equity
$
289,243

 
$
293,632

 
$
289,782

 
$
279,489

 
$
270,172

Common shares outstanding
18,200,067

 
18,195,986

 
18,185,708

 
18,157,932

 
18,404,864

 
 
 
 
 
 
 
 
 
 
Tangible book value per common share
$
15.89

 
$
16.14

 
$
15.93

 
$
15.39

 
$
14.68

 
 
 
 
 
 
 
 
 
 
Tangible Equity to Tangible Assets Ratio:
 
 
 
 
Tangible equity
$
289,243

 
$
293,632

 
$
289,782

 
$
279,489

 
$
270,172

Tangible assets
$
3,286,330

 
$
3,216,580

 
$
3,185,484

 
$
3,145,932

 
$
3,109,353

 
 
 
 
 
 
 
 
 
 
Tangible equity to tangible assets
8.80
%
 
9.13
%
 
9.10
%
 
8.88
%
 
8.69
%

 
Three Months Ended
 
Year Ended
 
December 31,
 
September 30,
 
December 31,
 
December 31,
(in $000’s)
2016
 
2016
 
2015
 
2016
 
2015
 
 
 
 
 
 
 
 
 
 
Pre-Provision Net Revenue:
 
 
 
 
 
 
 
 
 
Income before income taxes
$
10,744

 
$
11,448

 
$
3,008

 
$
45,282

 
$
14,816

Add: provision for loan losses
711

 
1,146

 
7,238

 
3,539

 
14,097

Add: net loss on debt extinguishment
—

 
—

 
—

 
707

 
520

Add: net loss on loans held-for-sale and OREO
33

 
—

 
397

 
34

 
529

Add: net loss on securities transactions
—

 
1

 
—

 
—

 
—

Add: net loss on other assets
76

 
224

 
100

 
427

 
739

Less: net gain on securities transactions
68

 
—

 
56

 
930

 
729

Less: net gain on other assets


 
—

 
—

 
35

 
—

Pre-provision net revenue
$
11,496

 
$
12,819

 
$
10,687

 
$
49,024

 
$
29,972

 
 
 
 
 
 
 
 
 
 
Pre-provision net revenue
$
11,496

 
$
12,819

 
$
10,687

 
$
49,024

 
$
29,972

Total average assets
3,386,519

 
3,324,636

 
3,240,604

 
3,320,447

 
3,111,853

 
 
 
 
 
 
 
 
 
 
Pre-provision net revenue to total average assets (annualized)
1.35
%
 
1.53
%
 
1.31
%
 
1.48
%
 
0.96
%





Item 7.01    Regulation FD Disclosure

From time-to-time between February 3, 2017 and March 31, 2017, the management team of Peoples Bancorp Inc. ("Peoples"), including the President and Chief Executive Officer, and the Executive Vice President, Chief Financial Officer and Treasurer, intend to conduct one or more meetings with investors and analysts. These individuals intend to use an investor presentation containing financial data and other information regarding Peoples to assist the investors and analysts with their understanding of the business and financial performance of Peoples. A copy of the investor presentation is included as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference.

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


Item 9.01     Financial Statements and Exhibits

a) - c)
Not applicable.

d) Exhibits
See Index to Exhibits below.

Safe Harbor Statement
This Current Report on Form 8-K and the investor presentation included as Exhibit 99.1 contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Exchange Act and the Private Securities Litigation Reform Act of 1995. These forward-looking statements are identified by the fact they are not historical facts and may include discussions of the strategic plans and objectives or anticipated future performance and events of Peoples.
Peoples encourages readers of this Current Report on Form 8-K to understand forward-looking statements to be strategic objectives rather than absolute targets of future performance. Further, the information contained in this Current Report on Form 8-K and the investor presentation included as Exhibit 99.1 hereto should be read in conjunction with Peoples' Annual Report on Form 10-K for the fiscal year ended December 31, 2015 ("Peoples' 2015 Form 10-K") and Current Report on Form 8-K issued on January 27, 2017, filed with the Securities and Exchange Commission ("SEC") and available on the SEC's website (www.sec.gov) or at Peoples' website (www.peoplesbancorp.com).
Readers are cautioned that forward-looking statements, which are not historical fact, involve risks and uncertainties, including those detailed in Peoples' 2015 Annual Report on Form 10-K filed with the SEC under the section, "Risk Factors" in Part I, Item 1A. As such, actual results could differ materially from those contemplated by forward-looking statements made in this Current Report on Form 8-K and the investor presentation included as Exhibit 99 hereto. Management believes the expectations in these forward-looking statements are based upon reasonable assumptions within the bounds of management's knowledge of Peoples' business and operations. Peoples disclaims any responsibility to update these forward-looking statements to reflect events or circumstances after the date of this Current Report on Form 8-K.









SIGNATURES


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

 
 
 
PEOPLES BANCORP INC.
 
 
 
 
 
 
Date:
February 2, 2017
By:/s/
JOHN C. ROGERS
 
 
 
 
John C. Rogers
 
 
 
 
 
 
 
 
 
Executive Vice President,
Chief Financial Officer and Treasurer
 




INDEX TO EXHIBITS
Exhibit Number
 
Description
99

 
Transcript of conference call conducted by management of Peoples Bancorp Inc. on January 27, 2017 to discuss results of operations for the quarter and year ended December 31, 2016
99.1

 
February 2017 Investor Presentation


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