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)
| 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 | ||