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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): January 29, 2021 (January 26, 2021)

pebo-20210126_g1.jpg
PEOPLES BANCORP INC.
(Exact name of Registrant as specified in its charter)

Ohio000-1677231-0987416
(State or other jurisdiction(Commission File(I.R.S. Employer
of incorporation)Number)Identification Number)

138 Putnam Street, PO Box 738
Marietta,Ohio45750-0738
(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:
☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common shares, without par valuePEBOThe Nasdaq Stock Market
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐


Item 2.02     Results of Operations and Financial Condition

On January 26, 2021, management of Peoples Bancorp Inc. (“Peoples”) conducted a facilitated conference call at approximately 11:00 a.m., Eastern Standard Time, to discuss results of operations for the quarter and twelve months ended December 31, 2020. A replay of the conference call audio will be available on Peoples’ website, www.peoplesbancorp.com, in the “Investor Relations” section for one year. A copy of the transcript of the conference call is included as Exhibit 99.1 to this Current Report on Form 8-K.
The information contained in this Item 2.02 and Exhibit 99.1 included with this Current Report on Form 8-K, is being furnished pursuant to Item 2.02 and shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section, nor shall such information be deemed to be incorporated by reference in any registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as otherwise stated in such filing.
During the conference call, management referred to non-Generally Accepted Accounting Principles ("US 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-US GAAP financial measures referred to during the conference call and the most directly comparable US GAAP-based financial measures.





Three Months EndedYear Ended
December 31,September 30,December 31,December 31,
(Dollars in thousands)20202020201920202019
Core non-interest expense:
Total non-interest expense$33,250 $34,315 $33,521 $133,695 $137,250 
Less: acquisition-related expenses77 335 65 489 7,287 
Less: pension settlement charges4 531 — 1,054 — 
Less: severance expenses771 192 270 1,055 270 
Less: COVID-19 related expenses126 148 — 1,332 — 
Core non-interest expense$32,272 $33,109 $33,186 $129,765 $129,693 

Three Months EndedYear Ended
December 31,September 30,December 31,December 31,
(Dollars in thousands)20202020201920202019
Efficiency ratio:
Total non-interest expense$33,250 $34,315 $33,521 $133,695 $137,250 
Less: amortization of other intangible assets909 857 888 3,223 3,359 
Adjusted total non-interest expense32,341 33,458 32,633 130,472 133,891 
Total non-interest income16,501 16,770 17,163 63,672 64,274 
Less: net gain on investment securities— 2 94 655 164 
Add: net loss on investment securities(751)— — (1,023)— 
Add: net loss on asset disposals and other transactions(53)(28)(229)(290)(782)
Total non-interest income, excluding net gains and losses17,305 16,796 17,298 64,330 64,892 
Net interest income34,308 35,119 35,121 138,923 140,838 
Add: fully tax-equivalent adjustment (a)251 262 287 1,054 1,068 
Net interest income on a fully tax-equivalent basis34,559 35,381 35,408 139,977 141,906 
Adjusted revenue$51,864 $52,177 $52,706 $204,307 $206,798 
Efficiency ratio62.36 %64.12 %61.92 %63.86 %64.74 %
Efficiency ratio adjusted for non-core items:
Core non-interest expense$32,272 $33,109 $33,186 $129,765 $129,693 
Less: amortization of other intangible assets909 857 888 3,223 3,359 
Adjusted core non-interest expense31,363 32,252 32,298 126,542 126,334 
Adjusted revenue$51,864 $52,177 $52,706 $204,307 $206,798 
Efficiency ratio adjusted for non-core items60.47 %61.81 %61.28 %61.94 %61.09 %
(a) Tax effect is calculated using a 21% statutory federal corporate income tax rate.



NON-US GAAP FINANCIAL MEASURES (Unaudited) -- (Continued)
At or For the Three Months Ended
December 31,September 30,June 30,March 31,December 31,
(Dollars in thousands, except per share data)20202020202020202019
Tangible equity:
Total stockholders' equity$575,673 $566,856 $569,177 $583,721 $594,393 
Less: goodwill and other intangible assets184,597 185,397 176,625 177,447 177,503 
Tangible equity$391,076 $381,459 $392,552 $406,274 $416,890 
Tangible assets:
Total assets$4,760,764 $4,911,807 $4,985,819 $4,469,120 $4,354,165 
Less: goodwill and other intangible assets184,597 185,397 176,625 177,447 177,503 
Tangible assets$4,576,167 $4,726,410 $4,809,194 $4,291,673 $4,176,662 
Tangible book value per common share:
Tangible equity$391,076 $381,459 $392,552 $406,274 $416,890 
Common shares outstanding19,563,979 19,721,783 19,925,083 20,346,843 20,698,941 
Tangible book value per common share$19.99 $19.34 $19.70 $19.97 $20.14 
Tangible equity to tangible assets ratio:
Tangible equity$391,076 $381,459 $392,552 $406,274 $416,890 
Tangible assets$4,576,167 $4,726,410 $4,809,194 $4,291,673 $4,176,662 
Tangible equity to tangible assets8.55 %8.07 %8.16 %9.47 %9.98 %



Three Months EndedYear Ended
December 31,September 30,December 31,December 31,
(Dollars in thousands)20202020201920202019
Pre-provision net revenue:
Income before income taxes$24,836 $12,846 $17,627 $42,646 $65,358 
Add: provision for credit losses— 4,728 1,136 26,254 2,504 
Add: loss on OREO119 — 44 120 98 
Add: loss on investment securities751 — — 368 — 
Add: loss on other assets— 43 188 170 692 
Less: recovery for credit losses7,277 — — — — 
Less: gain on OREO— 15 — — — 
Less: gain on investment securities— 2 94 — 164 
Less: gain on other assets66 — 3 — 8 
Pre-provision net revenue$18,363 $17,600 $18,898 $69,558 $68,480 
Total average assets4,837,978 4,906,614 4,350,414 4,739,289 4,222,482 
Pre-provision net revenue to total average assets (annualized)1.51 %1.43 %1.72 %1.47 %1.62 %
Weighted-average common shares outstanding – diluted19,442,28419,637,68920,599,12719,843,80620,273,725
Pre-provision net revenue per common share – diluted$0.94 $0.90 $0.91 $3.49 $3.36 
(a)On January 1, 2020, Peoples adopted ASU 2016-13 and adopted the CECL model. Prior to the adoption of CECL, the provision for (recovery of) credit losses was the "provision for (recovery of) loan losses." The provision for credit losses includes changes related to the allowance for credit losses on loans, which includes purchased credit deteriorated loans, held-to-maturity investment securities, and the unfunded commitment liability.


NON-US GAAP FINANCIAL MEASURES (Unaudited) -- (Continued)
Three Months EndedYear Ended
December 31,September 30,December 31,December 31,
(Dollars in thousands)20202020201920202019
Annualized net income adjusted for non-core items:
Net income$20,573 $10,210 $14,860 $34,767 $53,695 
Add: net loss on investment securities751 — — 368 — 
Less: tax effect of loss on investment securities (a)158 — — 77 — 
Less: net gain on investment securities— 2 94 — 164 
Add: tax effect of net gain on investment securities (a)— — 20 — 34 
Add: net loss on asset disposals and other transactions53 28 229 290 782 
Less: tax effect of net loss on asset disposals and other transactions (a)11 6 48 61 164 
Add: acquisition-related costs77 1,305 65 1,459 7,530 
Less: tax effect of acquisition-related costs (a)16 274 14 306 1,581 
Add: severance expenses771 192 140 1,055 270 
Less: tax effect of severance expenses (a)162 40 29 222 57 
Add: pension settlement charges4 531 — 1,054 — 
Less: tax effect of pension settlement charges (a)1 112 — 221 — 
Add: COVID-19-related expenses126 148 — 1,332 — 
Less: tax effect of COVID-19-related expenses (a)26 31 — 280 — 
Net income adjusted for non-core items$21,981 $11,949 $15,129 $39,158 $60,345 
Days in the period92 92 92 366 365 
Days in the year366 366 365 366 365 
Annualized net income$81,845 $40,618 $58,955 $34,767 $53,695 
Annualized net income adjusted for non-core items$87,446 $47,536 $60,023 $39,158 $60,345 
Return on average assets:
Annualized net income$81,845 $40,618 $58,955 $34,767 $53,695 
Total average assets$4,837,978 $4,906,614 $4,350,414 $4,739,289 $4,222,482 
Return on average assets1.69 %0.83 %1.36 %0.73 %1.27 %
Return on average assets adjusted for non-core items:
Annualized net income adjusted for non-core items$87,446 $47,536 $60,023 $39,158 $60,345 
Total average assets$4,837,978 $4,906,614 $4,350,414 $4,739,289 $4,222,482 
Return on average assets adjusted for non-core items1.81 %0.97 %1.38 %0.83 %1.43 %

(a) Tax effect is calculated using a 21% statutory federal corporate income tax rate.



NON-US GAAP FINANCIAL MEASURES (Unaudited) -- (Continued)
For the Three Months EndedFor the Year Ended
December 31,September 30,December 31,December 31,
(Dollars in thousands)20202020201920202019
Annualized net income excluding amortization of other intangible assets:
Net income$20,573 $10,210 $14,860 $34,767 $53,695 
Add: amortization of other intangible assets909 857 888 3,223 3,359 
Less: tax effect of amortization of other intangible assets (a)191 180 186 677 705 
Net income excluding amortization of other intangible assets$21,291 $10,887 $15,562 $37,313 $56,349 
Days in the period92 92 92 366 365 
Days in the year366 366 365 366 365 
Annualized net income$81,845 $40,618 $58,955 $34,767 $53,695 
Annualized net income excluding amortization of other intangible assets$84,701 $43,311 $61,741 $37,313 $56,349 
Average tangible equity:
Total average stockholders' equity$566,292 $567,055 $591,112 $575,386 $566,123 
Less: average goodwill and other intangible assets185,093 185,816 178,163 181,526 173,529 
Average tangible equity$381,199 $381,239 $412,949 $393,860 $392,594 
Return on average stockholders' equity ratio:
Annualized net income$81,845 $40,618 $58,955 $34,767 $53,695 
Average stockholders' equity$566,292 $567,055 $591,112 $575,386 $566,123 
Return on average stockholders' equity14.45 %7.16 %9.97 %6.04 %9.48 %
Return on average tangible equity ratio:
Annualized net income excluding amortization of other intangible assets$84,701 $43,311 $61,741 $37,313 $56,349 
Average tangible equity$381,199 $381,239 $412,949 $393,860 $392,594 
Return on average tangible equity22.22 %11.36 %14.95 %9.47 %14.35 %
(a) Tax effect is calculated using a 21% statutory federal corporate income tax rate.

Item 8.01     Other Events

On January 29, 2021, Peoples Bancorp Inc. (“Peoples”) issued a press release announcing that on January 28, 2021, the Peoples Board of Directors authorized a new share repurchase program authorizing Peoples to purchase, from time to time, up to an aggregate of $30 million of its outstanding common shares. This new share repurchase program replaces the prior share repurchase program approved by the Peoples Board of Directors on February 27, 2020, which had authorized Peoples to purchase up to an aggregate of $40 million of its outstanding common shares and was terminated on January 28, 2021, with an aggregate of $28.4 million of Peoples common shares having been purchased through the termination date. The press release is filed herewith as Exhibit 99.2.




Item 9.01     Financial Statements and Exhibits

a) - c)
Not applicable

d) Exhibits
See Index to Exhibits below.

INDEX TO EXHIBITS

Exhibit NumberDescription
Transcript of conference call conducted by management of Peoples Bancorp Inc. on January 26, 2021 to discuss results of operations for the quarter and twelve months ended December 31, 2020
News Release issued by Peoples Bancorp Inc. on January 29, 2021



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:January 29, 2021By:/s/KATHRYN BAILEY
Kathryn Bailey
Executive Vice President,
Chief Financial Officer and Treasurer