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) |
x | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act | |
(17 CFR 240.14d-2(b)) | ||
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act | |
(17 CFR 240.13e-4(c)) |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). Emerging growth company ☐ If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐ |
PEOPLES BANCORP INC. | ||||
Date: | July 25, 2017 | By:/s/ | JOHN C. ROGERS | |
John C. Rogers | ||||
Executive Vice President, Chief Financial Officer and Treasurer |
Exhibit Number | Description | |
99.1 | News Release issued by Peoples Bancorp Inc. on July 25, 2017 | |
99.2 | News Release issued by Peoples Bancorp Inc. on July 25, 2017 |
P.O. BOX 738 - MARIETTA, OHIO - 45750 | NEWS RELEASE | ||
www.peoplesbancorp.com | |||
FOR IMMEDIATE RELEASE | Contact: | John C. Rogers | |
July 25, 2017 | Chief Financial Officer and Treasurer | ||
(740) 373-3155 |
• | Net interest income for the second quarter of 2017 increased 4% compared to the linked quarter and 7% compared to the second quarter of 2016. |
◦ | Net interest margin was 3.62% for the second quarter of 2017, compared to 3.55% for the linked quarter and 3.57% for the second quarter of 2016. |
• | Provision for loan losses was $0.9 million for the second quarter of 2017 and was impacted by the loan growth experienced during the quarter. |
• | Total fee-based income for the second quarter of 2017 grew 2% compared to the linked quarter and 10% compared to the second quarter of 2016. |
◦ | The growth during the second quarter of 2017 was muted by the reduction of $1.3 million in annual performance-based insurance commissions that, for the most part, are recognized in the first quarter of each year. |
• | Total non-interest expense was $26.7 million for the second quarter of 2017, a decrease of 2% compared to the linked quarter and up only 1% compared to the second quarter of 2016. |
◦ | The efficiency ratio was 61.2% for the second quarter of 2017, compared to 64.9% for the first quarter of 2017 and 65.1% in the second quarter of 2016. |
• | Generated positive operating leverage of 7% for the second quarter of 2017 compared to the second quarter of 2016. |
◦ | Total revenue, which is net interest income plus total fee-based income, grew 8% for the second quarter of 2017 compared to the second quarter of 2016, while total non-interest expense growth was only 1% for the same period, which resulted in positive operating leverage of 7%. |
• | Period-end total loan balances at June 30, 2017 grew 8%, on an annualized basis, compared to March 31, 2017 and 8% compared to June 30, 2016. |
◦ | Indirect consumer loans at June 30, 2017 grew $22.4 million, or 32% annualized, compared to March 31, 2017. |
◦ | Commercial loan balances grew $31.8 million, or 10% annualized, at June 30, 2017 compared to March 31, 2017. |
• | Asset quality improved during the quarter. |
◦ | Nonperforming assets decreased to 0.88% of total loans and other real estate owned ("OREO") at June 30, 2017 compared to 0.98% at March 31, 2017. |
◦ | Nonaccrual loans at June 30, 2017 decreased $1.4 million, or 8%, compared to March 31, 2017. |
◦ | Net charge-offs as a percent of average gross loans were 0.11% annualized for the second quarter of 2017. |
◦ | Classified loans, which are those categorized as substandard or doubtful, decreased $3.5 million, or 6%, at June 30, 2017 compared to March 31, 2017. |
◦ | At June 30, 2017, allowance for loan losses of $18.8 million was up slightly compared to March 31, 2017, due primarily to loan growth experienced during the quarter. |
• | Period-end total deposit balances decreased $25 million, or 1%, at June 30, 2017 compared to March 31, 2017. |
◦ | Governmental deposit balances decreased $32.9 million, or 10%, during the second quarter of 2017 due primarily to seasonality. |
◦ | Non-interest-bearing deposits remained at 29% of total deposits as of June 30, 2017. |
◦ | Core non-interest expenses are non-GAAP since they exclude the impact of costs associated with the system upgrade of Peoples' core banking system, acquisition-related costs, pension settlement charges, severance charges and legal settlement charges. |
◦ | Efficiency ratio is calculated as total non-interest expense (less amortization of other intangible assets) as a percentage of fully tax-equivalent net interest income plus total fee-based income. This measure is non-GAAP since it excludes amortization of other intangible assets and all gains and/or losses included in earnings, and uses fully tax-equivalent net interest income. |
◦ | Tangible assets, tangible equity and tangible book value per common share measures are non-GAAP since they exclude the impact of goodwill and other intangible assets acquired through acquisitions on both total stockholders' equity and total assets. |
◦ | Pre-provision net revenue is defined as net interest income plus total fee-based income minus total non-interest expense. This measure is non-GAAP since it excludes the provision for (recovery of) loan losses and all gains and/or losses included in earnings. |
◦ | Return on tangible stockholders' equity is calculated as net income (less after-tax impact of amortization of other intangible assets) divided by tangible stockholders' equity. This measure is non-GAAP since it excludes the after-tax impact of amortization of other intangible assets from earnings and the impact of goodwill and other intangible assets acquired through acquisitions on total stockholders' equity. |
Three Months Ended | Six Months Ended | ||||||||||||||||||
June 30, | March 31, | June 30, | June 30, | ||||||||||||||||
2017 | 2017 | 2016 | 2017 | 2016 | |||||||||||||||
PER COMMON SHARE: | |||||||||||||||||||
Earnings per common share: | |||||||||||||||||||
Basic | $ | 0.54 | $ | 0.49 | $ | 0.44 | $ | 1.02 | $ | 0.88 | |||||||||
Diluted | 0.53 | 0.48 | 0.44 | 1.02 | 0.88 | ||||||||||||||
Cash dividends declared per common share | 0.20 | 0.20 | 0.16 | 0.40 | 0.31 | ||||||||||||||
Book value per common share | 24.69 | 24.25 | 24.07 | 24.69 | 24.07 | ||||||||||||||
Tangible book value per common share (a) | 16.78 | 16.28 | 15.93 | 16.78 | 15.93 | ||||||||||||||
Closing stock price at end of period | $ | 32.13 | $ | 31.66 | $ | 21.79 | $ | 32.13 | $ | 21.79 | |||||||||
SELECTED RATIOS: | |||||||||||||||||||
Return on average stockholders' equity (b) | 8.76 | % | 8.14 | % | 7.45 | % | 8.45 | % | 7.52 | % | |||||||||
Return on average tangible stockholders' equity (b) (c) | 13.71 | % | 12.95 | % | 12.31 | % | 13.34 | % | 12.50 | % | |||||||||
Return on average assets (b) | 1.12 | % | 1.04 | % | 0.97 | % | 1.08 | % | 0.98 | % | |||||||||
Efficiency ratio (d) | 61.19 | % | 64.89 | % | 65.08 | % | 63.01 | % | 64.67 | % | |||||||||
Pre-provision net revenue to total average assets (b)(e) | 1.72 | % | 1.52 | % | 1.48 | % | 1.63 | % | 1.51 | % | |||||||||
Net interest margin (b)(f) | 3.62 | % | 3.55 | % | 3.57 | % | 3.58 | % | 3.55 | % | |||||||||
Dividend payout ratio (g) | 37.32 | % | 41.25 | % | 36.47 | % | 39.19 | % | 35.42 | % |
(a) | This amount represents a non-GAAP financial measure since it excludes the balance sheet impact of goodwill and other intangible assets acquired through acquisitions on stockholders' equity. Additional information regarding the calculation of this ratio is included at the end of this news release. |
(b) | Ratios are presented on an annualized basis. |
(c) | This amount represents a non-GAAP financial measure since it excludes the after-tax impact of amortization of other intangible assets from earnings and it excludes the balance sheet impact of goodwill and other intangible assets acquired through acquisitions on stockholders' equity. Additional information regarding the calculation of this ratio is included at the end of this news release. |
(d) | Total non-interest expense (less amortization of other intangible assets) as a percentage of fully tax-equivalent net interest income plus total fee-based income. This amount represents a non-GAAP financial measure since it excludes amortization of other intangible assets, and all gains and/or losses included in earnings, and uses fully tax-equivalent net interest income. Additional information regarding the calculation of this ratio is included at the end of this news release. |
(e) | This ratio represents a non-GAAP financial measure since it excludes the provision for (recovery of) loan losses and all gains and/or losses included in earnings. This measure is a key metric used by federal bank regulatory agencies in their evaluation of capital adequacy for financial institutions. Additional information regarding the calculation of this ratio is included at the end of this news release. |
(f) | Information presented on a fully tax-equivalent basis. |
(g) | Ratios are calculated based on dividends paid during the period divided by earnings for the period. |
Three Months Ended | Six Months Ended | ||||||||||||||||||
June 30, | March 31, | June 30, | June 30, | ||||||||||||||||
(in $000’s) | 2017 | 2017 | 2016 | 2017 | 2016 | ||||||||||||||
Total interest income | $ | 31,208 | $ | 29,817 | $ | 28,921 | $ | 61,025 | $ | 57,364 | |||||||||
Total interest expense | 3,118 | 2,872 | 2,613 | 5,990 | 5,289 | ||||||||||||||
Net interest income | 28,090 | 26,945 | 26,308 | 55,035 | 52,075 | ||||||||||||||
Provision for loan losses | 947 | 624 | 727 | 1,571 | 1,682 | ||||||||||||||
Net interest income after provision for loan losses | 27,143 | 26,321 | 25,581 | 53,464 | 50,393 | ||||||||||||||
Net gain on investment securities | 18 | 340 | 767 | 358 | 863 | ||||||||||||||
Loss on debt extinguishment | — | — | (707 | ) | — | (707 | ) | ||||||||||||
Net loss on loans held-for-sale and other real estate owned | (24 | ) | — | — | (24 | ) | (1 | ) | |||||||||||
Net gain (loss) on other assets | 133 | (3 | ) | (62 | ) | 130 | (92 | ) | |||||||||||
Fee-based income: | |||||||||||||||||||
Insurance income | 3,414 | 4,102 | 3,299 | 7,516 | 7,797 | ||||||||||||||
Trust and investment income | 2,977 | 2,682 | 2,776 | 5,659 | 5,158 | ||||||||||||||
Electronic banking income | 2,587 | 2,561 | 2,567 | 5,148 | 5,102 | ||||||||||||||
Deposit account service charges | 2,294 | 2,429 | 2,563 | 4,723 | 5,166 | ||||||||||||||
Commercial loan swap fee income | 651 | 268 | 264 | 919 | 428 | ||||||||||||||
Bank owned life insurance income | 496 | 493 | 253 | 989 | 420 | ||||||||||||||
Mortgage banking income | 467 | 387 | 265 | 854 | 425 | ||||||||||||||
Other income | 704 | 412 | 380 | 1,116 | 925 | ||||||||||||||
Total fee-based income | 13,590 | 13,334 | 12,367 | 26,924 | 25,421 | ||||||||||||||
Non-interest expense: | |||||||||||||||||||
Salaries and employee benefit costs | 15,049 | 15,496 | 13,972 | 30,545 | 28,297 | ||||||||||||||
Net occupancy and equipment expense | 2,648 | 2,713 | 2,581 | 5,361 | 5,387 | ||||||||||||||
Professional fees | 1,529 | 1,610 | 2,123 | 3,139 | 3,582 | ||||||||||||||
Electronic banking expense | 1,525 | 1,514 | 1,485 | 3,039 | 2,918 | ||||||||||||||
Data processing and software expense | 1,096 | 1,142 | 1,013 | 2,238 | 1,762 | ||||||||||||||
Amortization of other intangible assets | 871 | 863 | 1,007 | 1,734 | 2,015 | ||||||||||||||
Franchise tax expense | 584 | 583 | 483 | 1,167 | 1,021 | ||||||||||||||
FDIC insurance expense | 457 | 433 | 540 | 890 | 1,157 | ||||||||||||||
Communication expense | 390 | 410 | 584 | 800 | 1,212 | ||||||||||||||
Marketing expense | 354 | 280 | 414 | 634 | 812 | ||||||||||||||
Foreclosed real estate and other loan expenses | 179 | 196 | 100 | 375 | 351 | ||||||||||||||
Other non-interest expense | 1,998 | 2,091 | 2,203 | 4,089 | 4,273 | ||||||||||||||
Total non-interest expense | 26,680 | 27,331 | 26,505 | 54,011 | 52,787 | ||||||||||||||
Income before income taxes | 14,180 | 12,661 | 11,441 | 26,841 | 23,090 | ||||||||||||||
Income tax expense | 4,414 | 3,852 | 3,479 | 8,266 | 7,133 | ||||||||||||||
Net income | $ | 9,766 | $ | 8,809 | $ | 7,962 | $ | 18,575 | $ | 15,957 | |||||||||
PER SHARE DATA: | |||||||||||||||||||
Earnings per common share – Basic | $ | 0.54 | $ | 0.49 | $ | 0.44 | $ | 1.02 | $ | 0.88 | |||||||||
Earnings per common share – Diluted | $ | 0.53 | $ | 0.48 | $ | 0.44 | $ | 1.02 | $ | 0.88 | |||||||||
Cash dividends declared per common share | $ | 0.20 | $ | 0.20 | $ | 0.16 | $ | 0.40 | $ | 0.31 | |||||||||
Weighted-average common shares outstanding – Basic | 18,044,574 | 18,029,991 | 17,980,797 | 18,037,333 | 18,026,272 | ||||||||||||||
Weighted-average common shares outstanding – Diluted | 18,203,752 | 18,192,957 | 18,113,812 | 18,195,715 | 18,154,260 | ||||||||||||||
Actual common shares outstanding (end of period) | 18,279,036 | 18,270,508 | 18,185,708 | 18,279,036 | 18,185,708 |
June 30, | December 31, | ||||||
(in $000’s) | 2017 | 2016 | |||||
Assets | |||||||
Cash and cash equivalents: | |||||||
Cash and due from banks | $ | 56,310 | $ | 58,129 | |||
Interest-bearing deposits in other banks | 16,122 | 8,017 | |||||
Total cash and cash equivalents | 72,432 | 66,146 | |||||
Available-for-sale investment securities, at fair value (amortized cost of | |||||||
$792,803 at June 30, 2017 and $777,017 at December 31, 2016) | 799,088 | 777,940 | |||||
Held-to-maturity investment securities, at amortized cost (fair value of | |||||||
$43,768 at June 30, 2017 and $43,227 at December 31, 2016) | 43,060 | 43,144 | |||||
Other investment securities, at cost | 38,371 | 38,371 | |||||
Total investment securities | 880,519 | 859,455 | |||||
Loans, net of deferred fees and costs | 2,294,359 | 2,224,936 | |||||
Allowance for loan losses | (18,815 | ) | (18,429 | ) | |||
Net loans | 2,275,544 | 2,206,507 | |||||
Loans held for sale | 3,420 | 4,022 | |||||
Bank premises and equipment, net of accumulated depreciation | 52,188 | 53,616 | |||||
Bank owned life insurance | 61,214 | 60,225 | |||||
Goodwill | 132,631 | 132,631 | |||||
Other intangible assets | 12,061 | 13,387 | |||||
Other assets | 35,117 | 36,359 | |||||
Total assets | $ | 3,525,126 | $ | 3,432,348 | |||
Liabilities | |||||||
Deposits: | |||||||
Non-interest-bearing deposits | $ | 772,061 | $ | 734,421 | |||
Interest-bearing deposits | 1,905,083 | 1,775,301 | |||||
Total deposits | 2,677,144 | 2,509,722 | |||||
Short-term borrowings | 142,532 | 305,607 | |||||
Long-term borrowings | 219,014 | 145,155 | |||||
Accrued expenses and other liabilities | 35,083 | 36,603 | |||||
Total liabilities | 3,073,773 | 2,997,087 | |||||
Stockholders' Equity | |||||||
Preferred stock, no par value, 50,000 shares authorized, no shares issued at June 30, 2017 and December 31, 2016 | — | — | |||||
Common stock, no par value, 24,000,000 shares authorized, 18,945,490 shares issued at June 30, 2017 and 18,939,091 shares issued at December 31, 2016, including shares in treasury | 344,211 | 344,404 | |||||
Retained earnings | 121,590 | 110,294 | |||||
Accumulated other comprehensive income (loss), net of deferred income taxes | 1,439 | (1,554 | ) | ||||
Treasury stock, at cost, 701,382 shares at June 30, 2017 and 795,758 shares at December 31, 2016 | (15,887 | ) | (17,883 | ) | |||
Total stockholders' equity | 451,353 | 435,261 | |||||
Total liabilities and stockholders' equity | $ | 3,525,126 | $ | 3,432,348 | |||
June 30, | March 31, | December 31, | September 30, | June 30, | |||||||||||
(in $000’s, end of period) | 2017 | 2017 | 2016 | 2016 | 2016 | ||||||||||
Loan Portfolio | |||||||||||||||
Commercial real estate, construction | $ | 112,169 | $ | 103,317 | $ | 94,726 | $ | 81,080 | $ | 98,993 | |||||
Commercial real estate, other | 750,219 | 730,055 | 736,023 | 728,878 | 708,910 | ||||||||||
Commercial and industrial | 431,473 | 428,737 | 422,339 | 400,042 | 378,352 | ||||||||||
Residential real estate | 512,887 | 524,212 | 535,925 | 545,161 | 555,123 | ||||||||||
Home equity lines of credit | 111,710 | 110,028 | 111,492 | 111,196 | 109,017 | ||||||||||
Consumer, indirect | 306,113 | 283,762 | 252,832 | 230,286 | 207,116 | ||||||||||
Consumer, other | 69,267 | 68,670 | 70,519 | 71,491 | 70,065 | ||||||||||
Deposit account overdrafts | 521 | 721 | 1,080 | 1,074 | 1,214 | ||||||||||
Total loans | $ | 2,294,359 | $ | 2,249,502 | $ | 2,224,936 | $ | 2,169,208 | $ | 2,128,790 | |||||
Total acquired loans (a) | $ | 463,684 | $ | 491,819 | $ | 516,832 | $ | 551,021 | $ | 591,967 | |||||
Total originated loans | $ | 1,830,675 | $ | 1,757,683 | $ | 1,708,104 | $ | 1,618,187 | $ | 1,536,823 | |||||
Deposit Balances | |||||||||||||||
Non-interest-bearing deposits | $ | 772,061 | $ | 785,047 | $ | 734,421 | $ | 745,468 | $ | 699,695 | |||||
Interest-bearing deposits: | |||||||||||||||
Interest-bearing demand accounts | 303,501 | 292,187 | 278,975 | 270,490 | 252,119 | ||||||||||
Retail certificates of deposit (b) | 352,758 | 353,918 | 360,464 | 390,568 | 402,102 | ||||||||||
Money market deposit accounts | 397,211 | 386,999 | 407,754 | 411,111 | 401,828 | ||||||||||
Governmental deposit accounts | 297,560 | 330,477 | 251,671 | 286,716 | 300,639 | ||||||||||
Savings accounts | 443,110 | 445,720 | 436,344 | 438,087 | 438,952 | ||||||||||
Brokered certificates of deposit (b) | 110,943 | 107,817 | 40,093 | 33,017 | 37,636 | ||||||||||
Total interest-bearing deposits | 1,905,083 | 1,917,118 | 1,775,301 | 1,829,989 | 1,833,276 | ||||||||||
Total deposits | $ | 2,677,144 | $ | 2,702,165 | $ | 2,509,722 | $ | 2,575,457 | $ | 2,532,971 | |||||
Asset Quality | |||||||||||||||
Nonperforming assets (NPAs): | |||||||||||||||
Loans 90+ days past due and accruing | $ | 2,583 | $ | 3,006 | $ | 3,771 | $ | 4,161 | $ | 5,869 | |||||
Nonaccrual loans | 16,921 | 18,293 | 21,325 | 19,346 | 15,582 | ||||||||||
Total nonperforming loans (NPLs) | 19,504 | 21,299 | 25,096 | 23,507 | 21,451 | ||||||||||
Other real estate owned (OREO) | 652 | 677 | 661 | 719 | 679 | ||||||||||
Total NPAs | $ | 20,156 | $ | 21,976 | $ | 25,757 | $ | 24,226 | $ | 22,130 | |||||
Criticized loans (c) | 111,480 | 101,284 | 99,182 | 99,294 | 106,616 | ||||||||||
Classified loans (d) | 53,041 | 56,503 | 57,736 | 53,755 | 51,762 | ||||||||||
Allowance for loan losses as a percent of NPLs (e)(f) | 96.47 | % | 86.71 | % | 73.43 | % | 77.50 | % | 83.16 | % | |||||
NPLs as a percent of total loans (e)(f) | 0.85 | % | 0.95 | % | 1.13 | % | 1.08 | % | 1.01 | % | |||||
NPAs as a percent of total assets (e)(f) | 0.57 | % | 0.64 | % | 0.75 | % | 0.72 | % | 0.66 | % | |||||
NPAs as a percent of total loans and OREO (e)(f) | 0.88 | % | 0.98 | % | 1.16 | % | 1.11 | % | 1.04 | % | |||||
Criticized loans as a percent of total loans | 4.86 | % | 4.50 | % | 4.46 | % | 4.58 | % | 5.01 | % | |||||
Classified loans as a percent of total loans | 2.31 | % | 2.51 | % | 2.59 | % | 2.48 | % | 2.43 | % | |||||
Allowance for loan losses as a percent of total loans (e) | 0.82 | % | 0.82 | % | 0.83 | % | 0.84 | % | 0.84 | % | |||||
Capital Information (g) | |||||||||||||||
Common Equity Tier 1 risk-based capital ratio | 13.18 | % | 13.05 | % | 12.91 | % | 13.04 | % | 13.03 | % | |||||
Tier 1 risk-based capital ratio | 13.47 | % | 13.34 | % | 13.21 | % | 13.34 | % | 13.33 | % | |||||
Total risk-based capital ratio (Tier 1 and Tier 2) | 14.40 | % | 14.27 | % | 14.11 | % | 14.24 | % | 14.23 | % | |||||
Leverage ratio | 9.72 | % | 9.60 | % | 9.66 | % | 9.71 | % | 9.56 | % | |||||
Common Equity Tier 1 capital | $ | 318,849 | $ | 310,856 | $ | 306,506 | $ | 301,222 | $ | 295,148 | |||||
Tier 1 capital | 325,865 | 317,826 | 313,430 | 308,099 | 301,977 | ||||||||||
Total capital (Tier 1 and Tier 2) | 348,309 | 340,147 | 334,957 | 328,948 | 322,413 | ||||||||||
Total risk-weighted assets | $ | 2,419,335 | $ | 2,382,874 | $ | 2,373,359 | $ | 2,309,951 | $ | 2,265,022 | |||||
Tangible equity to tangible assets (h) | 9.07 | % | 8.98 | % | 8.80 | % | 9.13 | % | 9.10 | % |
Three Months Ended | Six Months Ended | ||||||||||||||||||
June 30, | March 31, | June 30, | June 30, | ||||||||||||||||
(in $000’s) | 2017 | 2017 | 2016 | 2017 | 2016 | ||||||||||||||
Provision for Loan Losses | |||||||||||||||||||
Provision for loan losses | $ | 850 | $ | 400 | $ | 575 | $ | 1,250 | $ | 1,433 | |||||||||
Provision for checking account overdrafts | 97 | 224 | 152 | 321 | 249 | ||||||||||||||
Total provision for loan losses | $ | 947 | $ | 624 | $ | 727 | $ | 1,571 | $ | 1,682 | |||||||||
Net Charge-Offs | |||||||||||||||||||
Gross charge-offs | $ | 957 | $ | 1,100 | $ | 855 | 2,057 | $ | 2,857 | ||||||||||
Recoveries | 357 | 515 | 705 | 872 | 2,234 | ||||||||||||||
Net charge-offs | $ | 600 | $ | 585 | $ | 150 | $ | 1,185 | $ | 623 | |||||||||
Net Charge-Offs (Recoveries) by Type | |||||||||||||||||||
Commercial real estate, other | $ | 11 | $ | (102 | ) | $ | (17 | ) | $ | (91 | ) | $ | (1,153 | ) | |||||
Commercial and industrial | — | 117 | (244 | ) | 117 | 767 | |||||||||||||
Residential real estate | 78 | 19 | 194 | 97 | 333 | ||||||||||||||
Home equity lines of credit | 14 | — | — | 14 | 3 | ||||||||||||||
Consumer, indirect | 299 | 277 | 29 | 576 | 355 | ||||||||||||||
Consumer, other | 73 | (10 | ) | 55 | 63 | 92 | |||||||||||||
Deposit account overdrafts | 125 | 284 | 133 | 409 | 226 | ||||||||||||||
Total net charge-offs | $ | 600 | $ | 585 | $ | 150 | $ | 1,185 | $ | 623 | |||||||||
As a percent of average gross loans (annualized) | 0.11 | % | 0.11 | % | 0.03 | % | 0.11 | % | 0.06 | % |
June 30, | March 31, | December 31, | September 30, | June 30, | |||||||||||||||
(in $000’s, end of period) | 2017 | 2017 | 2016 | 2016 | 2016 | ||||||||||||||
Trust assets under administration and management | $ | 1,393,435 | $ | 1,362,243 | $ | 1,301,509 | $ | 1,292,044 | $ | 1,280,004 | |||||||||
Brokerage assets under administration and management | 836,192 | 805,361 | 777,771 | 754,168 | 729,519 | ||||||||||||||
Mortgage loans serviced for others | $ | 402,516 | $ | 399,279 | $ | 398,134 | $ | 389,090 | $ | 380,741 | |||||||||
Employees (full-time equivalent) | 775 | 776 | 782 | 799 | 803 |
Three Months Ended | ||||||||||||||||||||||||||
June 30, 2017 | March 31, 2017 | June 30, 2016 | ||||||||||||||||||||||||
(in $000’s) | Balance | Income/ Expense | Yield/ Cost | Balance | Income/ Expense | Yield/ Cost | Balance | Income/ Expense | Yield/ Cost | |||||||||||||||||
Assets | ||||||||||||||||||||||||||
Short-term investments | $ | 12,275 | $ | 26 | 0.85 | % | $ | 7,415 | $ | 15 | 0.82 | % | $ | 9,073 | $ | 11 | 0.49 | % | ||||||||
Investment securities (a)(b) | 879,498 | 6,174 | 2.81 | % | 862,614 | 5,976 | 2.77 | % | 877,046 | 5,984 | 2.73 | % | ||||||||||||||
Loans (b)(c): | ||||||||||||||||||||||||||
Commercial real estate, construction | 107,224 | 1,158 | 4.27 | % | 94,215 | 993 | 4.22 | % | 91,510 | 871 | 3.77 | % | ||||||||||||||
Commercial real estate, other | 735,915 | 8,892 | 4.78 | % | 734,442 | 8,423 | 4.59 | % | 721,714 | 8,341 | 4.57 | % | ||||||||||||||
Commercial and industrial | 433,277 | 4,858 | 4.44 | % | 433,068 | 4,545 | 4.20 | % | 373,220 | 4,017 | 4.26 | % | ||||||||||||||
Residential real estate (d) | 520,863 | 5,564 | 4.27 | % | 531,457 | 5,769 | 4.34 | % | 562,565 | 6,106 | 4.34 | % | ||||||||||||||
Home equity lines of credit | 111,185 | 1,233 | 4.45 | % | 111,112 | 1,159 | 4.23 | % | 107,919 | 1,203 | 4.48 | % | ||||||||||||||
Consumer, indirect | 293,917 | 2,570 | 3.51 | % | 269,821 | 2,232 | 3.35 | % | 194,642 | 1,824 | 3.77 | % | ||||||||||||||
Consumer, other | 69,329 | 1,229 | 7.11 | % | 70,206 | 1,218 | 7.04 | % | 70,430 | 1,066 | 6.09 | % | ||||||||||||||
Total loans | 2,271,710 | 25,504 | 4.46 | % | 2,244,321 | 24,339 | 4.35 | % | 2,122,000 | 23,428 | 4.39 | % | ||||||||||||||
Allowance for loan losses | (18,554 | ) | (18,585 | ) | (17,362 | ) | ||||||||||||||||||||
Net loans | 2,253,156 | 2,225,736 | 2,104,638 | |||||||||||||||||||||||
Total earning assets | 3,144,929 | 31,704 | 4.01 | % | 3,095,765 | 30,330 | 3.93 | % | 2,990,757 | 29,423 | 3.92 | % | ||||||||||||||
Intangible assets | 145,052 | 145,546 | 148,464 | |||||||||||||||||||||||
Other assets | 199,720 | 205,040 | 167,435 | |||||||||||||||||||||||
Total assets | $ | 3,489,701 | $ | 3,446,351 | $ | 3,306,656 | ||||||||||||||||||||
Liabilities and Equity | ||||||||||||||||||||||||||
Interest-bearing deposits: | ||||||||||||||||||||||||||
Savings accounts | $ | 444,824 | $ | 61 | 0.06 | % | $ | 439,206 | $ | 59 | 0.05 | % | $ | 438,368 | $ | 58 | 0.05 | % | ||||||||
Government deposit accounts | 301,448 | 168 | 0.22 | % | 283,605 | 131 | 0.19 | % | 302,852 | 146 | 0.19 | % | ||||||||||||||
Interest-bearing demand accounts | 295,080 | 98 | 0.13 | % | 286,487 | 78 | 0.11 | % | 251,773 | 46 | 0.07 | % | ||||||||||||||
Money market deposit accounts | 393,807 | 197 | 0.20 | % | 398,839 | 187 | 0.19 | % | 400,286 | 165 | 0.17 | % | ||||||||||||||
Retail certificates of deposit | 355,256 | 746 | 0.84 | % | 342,837 | 726 | 0.86 | % | 417,683 | 767 | 0.74 | % | ||||||||||||||
Brokered certificates of deposits | 110,160 | 459 | 1.67 | % | 84,929 | 306 | 1.46 | % | 42,934 | 321 | 3.01 | % | ||||||||||||||
Total interest-bearing deposits | 1,900,575 | 1,729 | 0.36 | % | 1,835,903 | 1,487 | 0.33 | % | 1,853,896 | 1,503 | 0.33 | % | ||||||||||||||
Short-term borrowings | 159,505 | 233 | 0.58 | % | 205,296 | 251 | 0.50 | % | 142,888 | 105 | 0.29 | % | ||||||||||||||
Long-term borrowings | 178,131 | 1,156 | 2.60 | % | 172,053 | 1,134 | 2.66 | % | 118,427 | 1,005 | 3.40 | % | ||||||||||||||
Total borrowed funds | 337,636 | 1,389 | 1.65 | % | 377,349 | 1,385 | 1.48 | % | 261,315 | 1,110 | 1.70 | % | ||||||||||||||
Total interest-bearing liabilities | 2,238,211 | 3,118 | 0.56 | % | 2,213,252 | 2,872 | 0.53 | % | 2,115,211 | 2,613 | 0.50 | % | ||||||||||||||
Non-interest-bearing deposits | 769,406 | 758,446 | 726,066 | |||||||||||||||||||||||
Other liabilities | 34,685 | 35,663 | 35,307 | |||||||||||||||||||||||
Total liabilities | 3,042,302 | 3,007,361 | 2,876,584 | |||||||||||||||||||||||
Stockholders’ equity | 447,399 | 438,990 | 430,072 | |||||||||||||||||||||||
Total liabilities and equity | $ | 3,489,701 | $ | 3,446,351 | $ | 3,306,656 | ||||||||||||||||||||
Net interest income/spread (b) | $ | 28,586 | 3.45 | % | $ | 27,458 | 3.40 | % | $ | 26,810 | 3.42 | % | ||||||||||||||
Net interest margin (b) | 3.62 | % | 3.55 | % | 3.57 | % | ||||||||||||||||||||
(a) Average balances are based on carrying value. | ||||||||||||||||||||||||||
(b) Interest income and yields are presented on a fully tax-equivalent basis using a 35% federal statutory tax rate. | ||||||||||||||||||||||||||
(c) Average balances include nonaccrual and impaired loans. Interest income includes interest earned and received on nonaccrual loans prior to the loans being placed on nonaccrual status. Loan fees included in interest income were immaterial for all periods presented. | ||||||||||||||||||||||||||
(d) 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. |
For the Six Months Ended | |||||||||||||||||
June 30, 2017 | June 30, 2016 | ||||||||||||||||
(in $000’s) | Balance | Income/ Expense | Yield/ Cost | Balance | Income/ Expense | Yield/ Cost | |||||||||||
Assets | |||||||||||||||||
Short-term investments | 9,859 | 41 | 0.84 | % | $ | 10,754 | $ | 27 | 0.50 | % | |||||||
Investment securities (a)(b) | 871,103 | 12,150 | 2.79 | % | 876,345 | 11,912 | 2.72 | % | |||||||||
Loans (b)(c): | |||||||||||||||||
Commercial real estate, construction | 100,755 | 2,151 | 4.25 | % | 85,856 | 1,652 | 3.81 | % | |||||||||
Commercial real estate, other | 735,182 | 17,315 | 4.68 | % | 728,875 | 16,833 | 4.57 | % | |||||||||
Commercial and industrial | 433,173 | 9,403 | 4.32 | % | 364,797 | 7,711 | 4.18 | % | |||||||||
Residential real estate (d) | 526,131 | 11,333 | 4.31 | % | 564,039 | 12,271 | 4.35 | % | |||||||||
Home equity lines of credit | 111,149 | 2,392 | 4.34 | % | 107,444 | 2,393 | 4.48 | % | |||||||||
Consumer, indirect | 281,935 | 4,802 | 3.43 | % | 184,136 | 3,458 | 3.78 | % | |||||||||
Consumer, other | 69,766 | 2,447 | 7.07 | % | 71,722 | 2,117 | 5.97 | % | |||||||||
Total loans | 2,258,091 | 49,843 | 4.42 | % | 2,106,869 | 46,435 | 4.41 | % | |||||||||
Allowance for loan losses | (18,570 | ) | (17,103 | ) | |||||||||||||
Net loans | 2,239,521 | 2,089,766 | |||||||||||||||
Total earning assets | 3,120,483 | 62,034 | 3.97 | % | 2,976,865 | 58,374 | 3.90 | % | |||||||||
Intangible assets | 145,298 | 148,996 | |||||||||||||||
Other assets | 202,365 | 162,608 | |||||||||||||||
Total assets | $ | 3,468,146 | $ | 3,288,469 | |||||||||||||
Liabilities and Equity | |||||||||||||||||
Interest-bearing deposits: | |||||||||||||||||
Savings accounts | 442,030 | 120 | 0.05 | % | $ | 430,082 | $ | 114 | 0.05 | % | |||||||
Government deposit accounts | 292,576 | 299 | 0.21 | % | 300,769 | 293 | 0.20 | % | |||||||||
Interest-bearing demand accounts | 290,807 | 176 | 0.12 | % | 251,557 | 91 | 0.07 | % | |||||||||
Money market deposit accounts | 396,309 | 384 | 0.20 | % | 399,401 | 326 | 0.16 | % | |||||||||
Retail certificates of deposit | 74,967 | 764 | 2.06 | % | 46,928 | 687 | 2.94 | % | |||||||||
Brokered certificates of deposits | 371,728 | 1,473 | 0.80 | % | 427,429 | 1,593 | 0.75 | % | |||||||||
Total interest-bearing deposits | 1,868,417 | 3,216 | 0.35 | % | 1,856,166 | 3,104 | 0.34 | % | |||||||||
Short-term borrowings | 182,274 | 484 | 0.53 | % | 139,288 | 192 | 0.28 | % | |||||||||
Long-term borrowings | 175,108 | 2,290 | 2.63 | % | 115,899 | 1,993 | 3.45 | % | |||||||||
Total borrowed funds | 357,382 | 2,774 | 1.56 | % | 255,187 | 2,185 | 1.72 | % | |||||||||
Total interest-bearing liabilities | 2,225,799 | 5,990 | 0.54 | % | 2,111,353 | 5,289 | 0.50 | % | |||||||||
Non-interest-bearing deposits | 763,956 | 718,181 | |||||||||||||||
Other liabilities | 35,173 | 32,127 | |||||||||||||||
Total liabilities | 3,024,928 | 2,861,661 | |||||||||||||||
Stockholders’ equity | 443,218 | 426,808 | |||||||||||||||
Total liabilities and equity | $ | 3,468,146 | $ | 3,288,469 | |||||||||||||
Net interest income/spread (b) | $ | 56,044 | 3.43 | % | $ | 53,085 | 3.40 | % | |||||||||
Net interest margin (b) | 3.58 | % | 3.55 | % | |||||||||||||
(a) Average balances are based on carrying value. | |||||||||||||||||
(b) Interest income and yields are presented on a fully tax-equivalent basis using a 35% federal statutory tax rate. | |||||||||||||||||
(c) Average balances include nonaccrual and impaired loans. Interest income includes interest earned and received on nonaccrual loans prior to the loans being placed on nonaccrual status. Loan fees included in interest income were immaterial for all periods presented. | |||||||||||||||||
(d) 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 | Six Months Ended | ||||||||||||||||||
June 30, | March 31, | June 30, | June 30, | ||||||||||||||||
(in $000’s) | 2017 | 2017 | 2016 | 2017 | 2016 | ||||||||||||||
Core non-interest expenses: | |||||||||||||||||||
Total non-interest expense | $ | 26,680 | $ | 27,331 | $ | 26,505 | $ | 54,011 | $ | 52,787 | |||||||||
Less: System upgrade costs | — | — | 90 | — | 90 | ||||||||||||||
Core non-interest expenses | $ | 26,680 | $ | 27,331 | $ | 26,415 | $ | 54,011 | $ | 52,697 |
Three Months Ended | Six Months Ended | ||||||||||||||||||
June 30, | March 31, | June 30, | June 30, | ||||||||||||||||
(in $000’s) | 2017 | 2017 | 2016 | 2017 | 2016 | ||||||||||||||
Efficiency ratio: | |||||||||||||||||||
Total non-interest expense | $ | 26,680 | $ | 27,331 | $ | 26,505 | $ | 54,011 | $ | 52,787 | |||||||||
Less: Amortization of intangible assets | 871 | 863 | 1,007 | 1,734 | 2,015 | ||||||||||||||
Adjusted non-interest expense | $ | 25,809 | $ | 26,468 | $ | 25,498 | $ | 52,277 | $ | 50,772 | |||||||||
Total fee-based income | $ | 13,590 | $ | 13,334 | $ | 12,367 | 26,924 | 25,421 | |||||||||||
Net interest income | $ | 28,090 | $ | 26,945 | $ | 26,308 | $ | 55,035 | $ | 52,075 | |||||||||
Add: Fully tax-equivalent adjustment | 496 | 513 | 502 | 1,009 | 1,010 | ||||||||||||||
Net interest income on a fully tax-equivalent basis | $ | 28,586 | $ | 27,458 | $ | 26,810 | $ | 56,044 | $ | 53,085 | |||||||||
Adjusted revenue | $ | 42,176 | $ | 40,792 | $ | 39,177 | $ | 82,968 | $ | 78,506 | |||||||||
Efficiency ratio | 61.19 | % | 64.89 | % | 65.08 | % | 63.01 | % | 64.67 | % | |||||||||
Efficiency ratio adjusted for non-core items: | |||||||||||||||||||
Core non-interest expenses | $ | 26,680 | $ | 27,331 | $ | 26,415 | $ | 54,011 | $ | 52,697 | |||||||||
Less: Amortization of intangible assets | 871 | 863 | 1,007 | 1,734 | 2,015 | ||||||||||||||
Adjusted non-interest expense | $ | 25,809 | $ | 26,468 | $ | 25,408 | $ | 52,277 | $ | 50,682 | |||||||||
Total fee-based income | $ | 13,590 | $ | 13,334 | $ | 12,367 | $ | 26,924 | $ | 25,421 | |||||||||
Net interest income on a fully tax-equivalent basis | $ | 28,586 | $ | 27,458 | $ | 26,810 | $ | 56,044 | $ | 53,085 | |||||||||
Adjusted revenue | $ | 42,176 | $ | 40,792 | $ | 39,177 | $ | 82,968 | $ | 78,506 | |||||||||
Efficiency ratio adjusted for non-core items | 61.19 | % | 64.89 | % | 64.85 | % | 63.01 | % | 64.56 | % |
At or For the Three Months Ended | |||||||||||||||||||
June 30, | March 31, | December 31, | September 30, | June 30, | |||||||||||||||
(in $000’s) | 2017 | 2017 | 2016 | 2016 | 2016 | ||||||||||||||
Tangible Equity: | |||||||||||||||||||
Total stockholders' equity | $ | 451,353 | $ | 443,009 | $ | 435,261 | $ | 440,637 | $ | 437,753 | |||||||||
Less: goodwill and other intangible assets | 144,692 | 145,505 | 146,018 | 147,005 | 147,971 | ||||||||||||||
Tangible equity | $ | 306,661 | $ | 297,504 | $ | 289,243 | $ | 293,632 | $ | 289,782 | |||||||||
Tangible Assets: | |||||||||||||||||||
Total assets | $ | 3,525,126 | $ | 3,459,276 | $ | 3,432,348 | $ | 3,363,585 | $ | 3,333,455 | |||||||||
Less: goodwill and other intangible assets | 144,692 | 145,505 | 146,018 | 147,005 | 147,971 | ||||||||||||||
Tangible assets | $ | 3,380,434 | $ | 3,313,771 | $ | 3,286,330 | $ | 3,216,580 | $ | 3,185,484 | |||||||||
Tangible Book Value per Common Share: | |||||||||||||||||||
Tangible equity | $ | 306,661 | $ | 297,504 | $ | 289,243 | $ | 293,632 | $ | 289,782 | |||||||||
Common shares outstanding | 18,279,036 | 18,270,508 | 18,200,067 | 18,195,986 | 18,185,708 | ||||||||||||||
Tangible book value per common share | $ | 16.78 | $ | 16.28 | $ | 15.89 | $ | 16.14 | $ | 15.93 | |||||||||
Tangible Equity to Tangible Assets Ratio: | |||||||||||||||||||
Tangible equity | $ | 306,661 | $ | 297,504 | $ | 289,243 | $ | 293,632 | $ | 289,782 | |||||||||
Tangible assets | $ | 3,380,434 | $ | 3,313,771 | $ | 3,286,330 | $ | 3,216,580 | $ | 3,185,484 | |||||||||
Tangible equity to tangible assets | 9.07 | % | 8.98 | % | 8.80 | % | 9.13 | % | 9.10 | % |
Three Months Ended | Six Months Ended | ||||||||||||||||||
June 30, | March 31, | June 30, | June 30, | ||||||||||||||||
(in $000’s) | 2017 | 2017 | 2016 | 2017 | 2016 | ||||||||||||||
Pre-Provision Net Revenue: | |||||||||||||||||||
Income before income taxes | $ | 14,180 | $ | 12,661 | $ | 11,441 | $ | 26,841 | $ | 23,090 | |||||||||
Add: provision for loan losses | 947 | 624 | 727 | 1,571 | 1,682 | ||||||||||||||
Add: loss on debt extinguishment | — | — | 707 | — | 707 | ||||||||||||||
Add: net loss on loans held-for-sale and OREO | 24 | — | — | 24 | 1 | ||||||||||||||
Add: net loss on other assets | — | 3 | 62 | 3 | 92 | ||||||||||||||
Less: net gain on securities transactions | 18 | 340 | 767 | 358 | 863 | ||||||||||||||
Less: gain on other assets | 133 | — | — | 133 | — | ||||||||||||||
Pre-provision net revenue | $ | 15,000 | $ | 12,948 | $ | 12,170 | $ | 27,948 | $ | 24,709 | |||||||||
Pre-provision net revenue | $ | 15,000 | $ | 12,948 | $ | 12,170 | $ | 27,948 | $ | 24,709 | |||||||||
Total average assets | $ | 3,489,701 | $ | 3,446,351 | $ | 3,306,656 | $ | 3,468,146 | $ | 3,288,469 | |||||||||
Pre-provision net revenue to total average assets (annualized) | 1.72 | % | 1.52 | % | 1.48 | % | 1.63 | % | 1.51 | % |
At or For the Three Months Ended | For the Six Months Ended | ||||||||||||||||||
June 30, | March 31, | June 30, | June 30, | ||||||||||||||||
(in $000’s) | 2017 | 2017 | 2016 | 2017 | 2016 | ||||||||||||||
Annualized Net Income Excluding Amortization of Other Intangible Assets: | |||||||||||||||||||
Net income | $ | 9,766 | $ | 8,809 | $ | 7,962 | $ | 18,575 | $ | 15,957 | |||||||||
Add: amortization of other intangible assets | 871 | 863 | 1,007 | 1,734 | 2,015 | ||||||||||||||
Less: tax effect (at 35% tax rate) of amortization of other intangible assets | 305 | 302 | 352 | 607 | 705 | ||||||||||||||
Net income excluding amortization of other intangible assets | $ | 10,332 | $ | 9,370 | $ | 8,617 | $ | 19,702 | $ | 17,267 | |||||||||
Days in the quarter | 91 | 90 | 91 | 181 | 182 | ||||||||||||||
Days in the year | 365 | 365 | 366 | 365 | 366 | ||||||||||||||
Annualized net income | $ | 39,171 | $ | 35,725 | $ | 32,023 | $ | 37,458 | $ | 32,089 | |||||||||
Annualized net income excluding amortization of other intangible assets | $ | 41,442 | $ | 38,001 | $ | 34,657 | $ | 39,731 | $ | 34,724 | |||||||||
Average Tangible Stockholders' Equity: | |||||||||||||||||||
Total average stockholders' equity | $ | 447,399 | $ | 438,990 | $ | 430,072 | $ | 443,218 | $ | 426,808 | |||||||||
Less: average goodwill and other intangible assets | 145,052 | 145,546 | 148,464 | 145,298 | 148,996 | ||||||||||||||
Average tangible stockholders' equity | $ | 302,347 | $ | 293,444 | $ | 281,608 | $ | 297,920 | $ | 277,812 | |||||||||
Return on Average Stockholders' Equity Ratio: | |||||||||||||||||||
Annualized net income | $ | 39,171 | $ | 35,725 | $ | 32,023 | $ | 37,458 | $ | 32,089 | |||||||||
Average stockholders' equity | $ | 447,399 | $ | 438,990 | $ | 430,072 | $ | 443,218 | $ | 426,808 | |||||||||
Return on average stockholders' equity | 8.76 | % | 8.14 | % | 7.45 | % | 8.45 | % | 7.52 | % | |||||||||
Return on Average Tangible Stockholders' Equity Ratio: | |||||||||||||||||||
Annualized net income excluding amortization of other intangible assets | $ | 41,442 | $ | 38,001 | $ | 34,657 | $ | 39,731 | $ | 34,724 | |||||||||
Average tangible stockholders' equity | $ | 302,347 | $ | 293,444 | $ | 281,608 | $ | 297,920 | $ | 277,812 | |||||||||
Return on average tangible stockholders' equity | 13.71 | % | 12.95 | % | 12.31 | % | 13.34 | % | 12.50 | % |
P.O. BOX 738 - MARIETTA, OHIO - 45750 | NEWS RELEASE | ||
www.peoplesbancorp.com | |||
FOR IMMEDIATE RELEASE | Contact: | John C. Rogers | |
July 25, 2017 | Chief Financial Officer and Treasurer | ||
(740) 373-3155 |
7-I