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EX-99 - EXHIBIT 99 PDF VERSION OF CONFERENCE CALL TRANSCRIPT - PEOPLES BANCORP INCa8k3rdqtr2017conferencecall.pdf
EX-99 - EXHIBIT 99 CONFERENCE CALL TRANSCRIPT - PEOPLES BANCORP INCexhibit99conferencecall.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): October 30, 2017 (October 24, 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:
 
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. ☐





Item 2.02     Results of Operations and Financial Condition

On October 24, 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 three and nine months ended September 30, 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
 
Nine Months Ended
 
September 30,
 
June 30,
 
September 30,
 
September 30,
(in $000’s)
2017
 
2017
 
2016
 
2017
 
2016
 
 
 
 
 
 
 
 
 
 
Core non-interest expense:
 
 
 
 
 
 
 
 
 
Total non-interest expense
$
26,558

 
$
26,680

 
$
26,842

 
$
80,569

 
$
79,629

Less: System upgrade costs

 

 
423

 

 
513

Core non-interest expense
$
26,558

 
$
26,680

 
$
26,419

 
$
80,569

 
$
79,116







 
Three Months Ended
 
Nine Months Ended
 
September 30,
 
June 30,
 
September 30,
 
September 30,
(in $000’s)
2017
 
2017
 
2016
 
2017
 
2016
 
 
 
 
 
 
 
 
 
 
Efficiency ratio:
 
 
 
 
 
 
 
 
 
Total non-interest expense
$
26,558

 
$
26,680

 
$
26,842

 
$
80,569

 
$
79,629

Less: Amortization of intangible assets
869

 
871

 
1,008

 
2,603

 
3,023

Adjusted non-interest expense
$
25,689


$
25,809


$
25,834


$
77,966


$
76,606

 
 
 
 
 
 
 
 
 
 
Total fee-based income
$
12,610

 
$
13,590

 
$
13,538

 
39,534

 
38,959

 
 
 
 
 
 
 
 
 
 
Net interest income
$
29,220

 
$
28,090

 
$
26,123

 
$
84,255

 
$
78,198

Add: Fully tax-equivalent adjustment
460

 
496

 
497

 
1,471

 
1,508

Net interest income on a fully tax-equivalent basis
$
29,680

 
$
28,586

 
$
26,620

 
$
85,726

 
$
79,706

 
 
 
 
 
 
 
 
 
 
Adjusted revenue
$
42,290

 
$
42,176

 
$
40,158

 
$
125,260

 
$
118,665

 
 
 
 
 
 
 
 
 
 
Efficiency ratio
60.74
%
 
61.19
%
 
64.33
%
 
62.24
%
 
64.56
%
 
 
 
 
 
 
 
 
 
 
Efficiency ratio adjusted for non-core items:
 
 
 
 
 
 
 
 
Core non-interest expense
$
26,558

 
$
26,680

 
$
26,419

 
$
80,569

 
$
79,116

Less: Amortization of intangible assets
869

 
871

 
1,008

 
2,603

 
3,023

Adjusted non-interest expense
$
25,689

 
$
25,809

 
$
25,411

 
$
77,966


$
76,093

Total fee-based income
$
12,610

 
$
13,590

 
$
13,538

 
$
39,534

 
$
38,959

Net interest income on a fully tax-equivalent basis
$
29,680

 
$
28,586

 
$
26,620

 
$
85,726

 
$
79,706

 
 
 
 
 
 
 
 
 
 
Adjusted revenue
$
42,290

 
$
42,176

 
$
40,158

 
$
125,260

 
$
118,665

 
 
 
 
 
 
 
 
 
 
Efficiency ratio adjusted for non-core items
60.74
%
 
61.19
%
 
63.28
%
 
62.24
%
 
64.12
%


 
At or For the Three Months Ended
 
September 30,
 
June 30,
 
December 31,
 
September 30,
 
June 30,
(in $000’s)
2017
 
2017
 
2016
 
2016
 
2016
 
 
 
 
 
 
 
 
 
 
Tangible Equity:
 
 
 
 
 
 
 
 
 
Total stockholders' equity
$
457,386

 
$
451,353

 
$
443,009

 
$
435,261

 
$
440,637

Less: goodwill and other intangible assets
143,859

 
144,692

 
145,505

 
146,018

 
147,005

Tangible equity
$
313,527

 
$
306,661

 
$
297,504

 
$
289,243

 
$
293,632

 
 
 
 
 
 
 
 
 
 
Tangible Assets:
 
 
 
 
 
 
 
 
 
Total assets
$
3,552,412

 
$
3,525,126

 
$
3,459,276

 
$
3,432,348

 
$
3,363,585

Less: goodwill and other intangible assets
143,859

 
144,692

 
145,505

 
146,018

 
147,005

Tangible assets
$
3,408,553

 
$
3,380,434

 
$
3,313,771

 
$
3,286,330

 
$
3,216,580

 
 
 
 
 
 
 
 
 
 
Tangible Book Value per Common Share:
 
 
 
 
 
 
 
 
 
Tangible equity
$
313,527

 
$
306,661

 
$
297,504

 
$
289,243

 
$
293,632

Common shares outstanding
18,281,194

 
18,279,036

 
18,270,508

 
18,200,067

 
18,195,986

 
 
 
 
 
 
 
 
 
 
Tangible book value per common share
$
17.15

 
$
16.78

 
$
16.28

 
$
15.89

 
$
16.14

 
 
 
 
 
 
 
 
 
 
Tangible Equity to Tangible Assets Ratio:
 
 
 
 
Tangible equity
$
313,527

 
$
306,661

 
$
297,504

 
$
289,243

 
$
293,632

Tangible assets
$
3,408,553

 
$
3,380,434

 
$
3,313,771

 
$
3,286,330

 
$
3,216,580

 
 
 
 
 
 
 
 
 
 
Tangible equity to tangible assets
9.20
%
 
9.07
%
 
8.98
%
 
8.80
%
 
9.13
%






 
Three Months Ended
 
Nine Months Ended
 
September 30,
 
June 30,
 
September 30,
 
September 30,
(in $000’s)
2017
 
2017
 
2016
 
2017
 
2016
 
 
 
 
 
 
 
 
 
 
Pre-Provision Net Revenue:
 
 
 
 
 
 
 
 
 
Income before income taxes
$
16,022

 
$
14,180

 
$
11,448

 
$
42,863

 
$
34,538

Add: provision for loan losses
1,086

 
947

 
1,146

 
2,657

 
2,828

Add: loss on debt extinguishment

 

 

 

 
707

Add: net loss on OREO

 
24

 

 
24

 
1

Add: net loss on investment securities

 

 
1

 

 

Add: net loss on other assets
38

 

 
224

 
41

 
316

Less: net gain on OREO
13

 

 

 
13

 

Less: net gain on investment securities
1,861

 
18

 

 
2,219

 
862

Less: net gain on other assets

 
133

 

 
133

 

Pre-provision net revenue
$
15,272

 
$
15,000

 
$
12,819

 
$
43,220

 
$
37,528

 
 
 
 
 
 
 
 
 
 
Pre-provision net revenue
$
15,272

 
$
15,000

 
$
12,819

 
$
43,220

 
$
37,528

Total average assets
$
3,541,220

 
$
3,489,701

 
$
3,324,636

 
$
3,492,772

 
$
3,300,338

 
 
 
 
 
 
 
 
 
 
Pre-provision net revenue to total average assets (annualized)
1.71
%
 
1.72
%
 
1.53
%
 
1.65
%
 
1.52
%

 
At or For the Three Months Ended
 
For the Nine Months Ended
 
September 30,
 
June 30,
 
September 30,
 
September 30,
(in $000’s)
2017
 
2017
 
2016
 
2017
 
2016
 
 
 
 
 
 
 
 
 
 
Annualized Net Income Excluding Amortization of Other Intangible Assets:
 
 
 
 
Net income
$
10,895

 
$
9,766

 
$
7,792

 
$
29,470

 
$
23,749

Add: amortization of other intangible assets
869

 
871

 
1,008

 
2,603

 
3,023

Less: tax effect (at 35% tax rate) of amortization of other intangible assets
304

 
305

 
353

 
911

 
1,058

Net income excluding amortization of other intangible assets
$
11,460

 
$
10,332

 
$
8,447

 
$
31,162

 
$
25,714

 
 
 
 
 
 
 
 
 
 
Days in the period
92

 
91

 
92

 
273

 
274

Days in the year
365

 
365

 
366

 
365

 
366

Annualized net income
$
43,225

 
$
39,171

 
$
30,999

 
$
39,401

 
$
31,723

Annualized net income excluding amortization of other intangible assets
$
45,466

 
$
41,442

 
$
33,604

 
$
41,663

 
$
34,348

 
 
 
 
 
 
 
 
 
 
Average Tangible Stockholders' Equity:
 
 
 
 
Total average stockholders' equity
$
456,198

 
$
447,399

 
$
438,606

 
$
447,592

 
$
430,769

Less: average goodwill and other intangible assets
144,267

 
145,052

 
147,466

 
144,950

 
148,482

Average tangible stockholders' equity
$
311,931

 
$
302,347

 
$
291,140

 
$
302,642

 
$
282,287

 
 
 
 
 
 
 
 
 
 
Return on Average Stockholders' Equity Ratio:
 
 
 
 
 
Annualized net income
$
43,225

 
$
39,171

 
$
30,999

 
$
39,401

 
$
31,723

Average stockholders' equity
$
456,198

 
$
447,399

 
$
438,606

 
$
447,592

 
$
430,769

 
 
 
 
 
 
 
 
 
 
Return on average stockholders' equity
9.47
%
 
8.76
%
 
7.07
%
 
8.80
%
 
7.36
%
 
 
 
 
 
 
Return on Average Tangible Stockholders' Equity Ratio:
 
 
 
 
 
Annualized net income excluding amortization of other intangible assets
$
45,466

 
$
41,442

 
$
33,604

 
$
41,663

 
$
34,348

Average tangible stockholders' equity
$
311,931

 
$
302,347

 
$
291,140

 
$
302,642

 
$
282,287

 
 
 
 
 
 
 
 
 
 
Return on average tangible stockholders' equity
14.58
%
 
13.71
%
 
11.54
%
 
13.77
%
 
12.17
%





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:
October 30, 2017
By:/s/
JOHN C. ROGERS
 
 
 
 
John C. Rogers
 
 
 
 
 
 
 
 
 
Executive Vice President, Chief Financial Officer and Treasurer
 


INDEX TO EXHIBITS
Exhibit Number
 
Description
 
Transcript of conference call conducted by management of Peoples Bancorp Inc. on October 24, 2017 to discuss results of operations for the three and nine months ended September 30, 2017.