Attached files

file filename
EX-99 - EXHIBIT 99 - PEOPLES BANCORP INCapril252017conferencecall.htm


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

FORM 8-K

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

Date of Report (Date of earliest event reported): April 28, 2017 (April 25, 2017)

pebonewlogoa05.jpg
 
PEOPLES BANCORP INC.
 
 
(Exact name of Registrant as specified in its charter)
 

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

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

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

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

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
 
o
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
 
 
 
o
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
 
 
 
o
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act
 
 
(17 CFR 240.14d-2(b))
 
 
 
 
o
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act
 
 
(17 CFR 240.13e-4(c))
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐







Item 2.02     Results of Operations and Financial Condition

On April 25, 2017, management of Peoples Bancorp Inc. (“Peoples”) conducted a facilitated conference call at approximately 11:00 a.m., Eastern Daylight Saving Time, to discuss results of operations for the quarter ended March 31, 2017. A replay of the conference call audio will be available on Peoples’ website, www.peoplesbancorp.com, in the “Investor Relations” section for one year. A copy of the transcript of the conference call is included as Exhibit 99 to this Current Report on Form 8-K.

The information contained in this Item 2.02 and Exhibit 99 included with this Current Report on Form 8-K, is being furnished pursuant to Item 2.02 and shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section, nor shall such information be deemed to be incorporated by reference in any registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as otherwise stated in such filing.

During the conference call, management referred to non-Generally Accepted Accounting Principles ("GAAP") financial measures that are used by management to provide information useful to investors in understanding Peoples' operating performance and trends, and to facilitate comparisons with the performance of Peoples' peers. The following tables show the differences between the non-GAAP financial measures referred to during the conference call and the most directly comparable GAAP-based financial measures.
NON-GAAP FINANCIAL MEASURES
The following non-GAAP financial measures used by Peoples provide information useful to investors in understanding Peoples' operating performance and trends, and facilitate comparisons with the performance of Peoples' peers. The following tables summarize the non-GAAP financial measures derived from amounts reported in Peoples' consolidated financial statements:

 
Three Months Ended
 
March 31,
 
December 31,
 
March 31,
(in $000’s)
2017
 
2016
 
2016
 
 
 
 
 
 
Core fee-based income:
 
 
 
 
 
Total fee-based income
$
13,334

 
$
12,111

 
$
13,054

Plus: System upgrade revenue waived

 
85

 

Core fee-based income
$
13,334

 
$
12,196

 
$
13,054


 
Three Months Ended
 
March 31,
 
December 31,
 
March 31,
(in $000’s)
2017
 
2016
 
2016
 
 
 
 
 
 
Core non-interest expenses:
 
 
 
 
 
Total non-interest expense
$
27,331

 
$
27,282

 
$
26,282

Less: System upgrade costs

 
746

 

Core non-interest expenses
$
27,331

 
$
26,536

 
$
26,282







 
Three Months Ended
 
March 31,
 
December 31,
 
March 31,
(in $000’s)
2017
 
2016
 
2016
 
 
 
 
 
 
Efficiency ratio:
 
 
 
 
 
Total non-interest expense
$
27,331

 
$
27,282

 
$
26,282

Less: Amortization of intangible assets
863

 
1,007

 
1,008

Adjusted non-interest expense
$
26,468


$
26,275


$
25,274

 
 
 
 
 
 
Total fee-based income
$
13,334

 
$
12,111

 
$
13,054

 
 
 
 
 
 
Net interest income
$
26,945

 
$
26,667

 
$
25,767

Add: Fully tax-equivalent adjustment
513

 
517

 
508

Net interest income on a fully tax-equivalent basis
$
27,458

 
$
27,184

 
$
26,275

 
 
 
 
 
 
Adjusted revenue
$
40,792

 
$
39,295

 
$
39,329

 
 
 
 
 
 
Efficiency ratio
64.89
%
 
66.87
%
 
64.26
%
 
 
 
 
 
 
Efficiency ratio adjusted for non-core items:
 
 
 
 
Core non-interest expenses
$
27,331

 
$
26,536

 
$
26,282

Less: Amortization of intangible assets
863

 
1,007

 
1,008

Adjusted non-interest expense
$
26,468

 
$
25,529

 
$
25,274

Core fee-based income
$
13,334

 
$
12,196

 
$
13,054

Net interest income on a fully tax-equivalent basis
$
27,458

 
$
27,184

 
$
26,275

 
 
 
 
 
 
Adjusted core revenue
$
40,792

 
$
39,380

 
$
39,329

 
 
 
 
 
 
Efficiency ratio adjusted for non-core items
64.89
%
 
64.83
%
 
64.26
%

 
At or For the Three Months Ended
 
March 31,
 
December 31,
 
September 30,
 
June 30,
 
March 31,
(in $000’s)
2017
 
2016
 
2016
 
2016
 
2016
 
 
 
 
 
 
 
 
 
 
Tangible Equity:
 
 
 
 
 
 
 
 
 
Total stockholders' equity
$
443,009

 
$
435,261

 
$
440,637

 
$
437,753

 
$
428,486

Less: goodwill and other intangible assets
145,505

 
146,018

 
147,005

 
147,971

 
148,997

Tangible equity
$
297,504

 
$
289,243

 
$
293,632

 
$
289,782

 
$
279,489

 
 
 
 
 
 
 
 
 
 
Tangible Assets:
 
 
 
 
 
 
 
 
 
Total assets
$
3,459,276

 
$
3,432,348

 
$
3,363,585

 
$
3,333,455

 
$
3,294,929

Less: goodwill and other intangible assets
145,505

 
146,018

 
147,005

 
147,971

 
148,997

Tangible assets
$
3,313,771

 
$
3,286,330

 
$
3,216,580

 
$
3,185,484

 
$
3,145,932

 
 
 
 
 
 
 
 
 
 
Tangible Book Value per Common Share:
 
 
 
 
 
 
 
 
 
Tangible equity
$
297,504

 
$
289,243

 
$
293,632

 
$
289,782

 
$
279,489

Common shares outstanding
18,270,508

 
18,200,067

 
18,195,986

 
18,185,708

 
18,157,932

 
 
 
 
 
 
 
 
 
 
Tangible book value per common share
$
16.28

 
$
15.89

 
$
16.14

 
$
15.93

 
$
15.39

 
 
 
 
 
 
 
 
 
 
Tangible Equity to Tangible Assets Ratio:
 
 
 
 
Tangible equity
$
297,504

 
$
289,243

 
$
293,632

 
$
289,782

 
$
279,489

Tangible assets
$
3,313,771

 
$
3,286,330

 
$
3,216,580

 
$
3,185,484

 
$
3,145,932

 
 
 
 
 
 
 
 
 
 
Tangible equity to tangible assets
8.98
%
 
8.80
%
 
9.13
%
 
9.10
%
 
8.88
%






 
Three Months Ended
 
March 31,
 
December 31,
 
March 31,
(in $000’s)
2017
 
2016
 
2016
 
 
 
 
 
 
Pre-Provision Net Revenue:
 
 
 
 
 
Income before income taxes
$
12,661

 
$
10,744

 
$
11,649

Add: provision for loan losses
624

 
711

 
955

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

 
33

 
1

Add: net loss on other assets
3

 
76

 
30

Less: net gain on securities transactions
340

 
68

 
96

Pre-provision net revenue
$
12,948

 
$
11,496

 
$
12,539

 
 
 
 
 
 
Pre-provision net revenue
$
12,948

 
$
11,496

 
$
12,539

Total average assets
$
3,446,351

 
$
3,386,519

 
$
3,272,635

 
 
 
 
 
 
Pre-provision net revenue to total average assets (annualized)
1.52
%
 
1.35
%
 
1.54
%

 
At or For the Three Months Ended
 
March 31,
 
December 31,
 
September 30,
 
June 30,
 
March 31,
(in $000’s)
2017
 
2016
 
2016
 
2016
 
2016
 
 
 
 
 
 
 
 
 
 
Annualized Net Income Excluding Amortization of Other Intangible Assets:
Net income
$
8,809

 
$
7,408

 
$
7,792

 
$
7,962

 
$
7,995

Add: amortization of other intangible assets
863

 
1,007

 
1,008

 
1,007

 
1,008

Less: tax effect (at 35% tax rate) of amortization of other intangible assets
302

 
352

 
353

 
352

 
353

Net income excluding amortization of other intangible assets
$
9,370

 
$
8,063

 
$
8,447

 
$
8,617

 
$
8,650

 
 
 
 
 
 
 
 
 
 
Days in the quarter
90

 
92

 
92

 
91

 
91

Days in the year
365

 
366

 
366

 
366

 
366

Annualized net income
$
35,725

 
$
29,471

 
$
30,999

 
$
32,023

 
$
32,156

Annualized net income excluding amortization of other intangible assets
$
38,001

 
$
32,077

 
$
33,604

 
$
34,657

 
$
34,790

 
 
 
 
 
 
 
 
 
 
Average Tangible Stockholders' Equity:
 
 
 
 
 
 
 
 
 
Total average stockholders' equity
$
438,990

 
$
438,238

 
$
438,606

 
$
430,072

 
$
423,543

Less: average goodwill and other intangible assets
145,546

 
146,489

 
147,466

 
148,464

 
149,528

Average tangible stockholders' equity
$
293,444

 
$
291,749

 
$
291,140

 
$
281,608

 
$
274,015

 
 
 
 
 
 
 
 
 
 
Return on Average Stockholders' Equity Ratio:
 
 
 
 
Annualized net income
$
35,725

 
$
29,471

 
$
30,999

 
$
32,023

 
$
32,156

Average stockholders' equity
$
438,990

 
$
438,238

 
$
438,606

 
$
430,072

 
$
423,543

 
 
 
 
 
 
 
 
 
 
Return on average stockholders' equity
8.14
%
 
6.72
%
 
7.07
%
 
7.45
%
 
7.59
%
 
 
 
 
 
Return on Average Tangible Stockholders' Equity Ratio:
 
 
 
 
Annualized net income excluding amortization of other intangible assets
$
38,001

 
$
32,077

 
$
33,604

 
$
34,657

 
$
34,790

Average tangible stockholders' equity
$
293,444

 
$
291,749

 
$
291,140

 
$
281,608

 
$
274,015

 
 
 
 
 
 
 
 
 
 
Return on average tangible stockholders' equity
12.95
%
 
10.99
%
 
11.54
%
 
12.31
%
 
12.70
%

Item 5.07     Submission of Matters to a Vote of Security Holders

On April 27, 2017, Peoples Bancorp Inc. (“Peoples”) held its 2017 Annual Meeting of Shareholders (the “Annual Meeting”) at the Lafayette Hotel in Marietta, Ohio, with 15,780,768 (86.39%) of the





18,266,209 common shares outstanding and entitled to vote on the February 28, 2017 record date represented in person or by proxy.

Three Directors of Peoples were elected to serve terms of three years each (expiring in 2020): Tara M. Abraham, James S. Huggins and Brooke W. James. Other Directors of Peoples who continue to serve after the Annual Meeting include S. Craig Beam, George W. Broughton, David F. Dierker, David L. Mead, Susan D. Rector, Charles W. Sulerzyski and Terry T. Sweet.

The following is a summary of the voting results:
Nominee
For
Withheld
Abstentions
Broker Non-Votes
Tara M. Abraham
13,218,337

 
225,399

 
not applicable
2,337,031

 
James S. Huggins
12,816,835

 
626,902

 
not applicable
2,337,031

 
Brooke W. James
13,232,041

 
211,696

 
not applicable
2,337,031

 

Also at the Annual Meeting, Peoples' shareholders: (1) approved, in a non-binding advisory vote, the compensation of Peoples' named executive officers as disclosed in Peoples' proxy statement for the Annual Meeting; and (2) ratified the appointment of Ernst & Young LLP as Peoples' independent registered public accounting firm for the fiscal year ending December 31, 2017. The following is a summary of the voting results:

Proposal
For
Against
Abstentions
Broker Non-Votes
Non-binding advisory vote on executive compensation
13,067,953

 
242,901

 
132,883

 
2,337,031

 

Proposal
For
Against
Abstentions
Broker Non-Votes
Ratification of the appointment of independent registered public accounting firm
15,584,730

 
180,431

 
15,607

 

 


Item 9.01     Financial Statements and Exhibits

a) - c)
Not applicable.

d) Exhibits
See Index to Exhibits below.








SIGNATURES


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

 
 
 
PEOPLES BANCORP INC.
 
 
 
 
 
 
Date:
April 28, 2017
By:/s/
CHARLES W. SULERZYSKI
 
 
 
 
Charles W. Sulerzyski
 
 
 
 
 
 
 
 
 
President,
Chief Executive Officer and Director
 


INDEX TO EXHIBITS
Exhibit Number
 
Description
99

 
Transcript of conference call conducted by management of Peoples Bancorp Inc. on April 25, 2017 to discuss results of operations for the quarter ended March 31, 2017