PEBO - Earnings call transcript Q1 2018

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Operator

Good morning, and welcome to the Peoples Bancorp Conference Call. My name is Nicole and I will be your conference facilitator today. Today's call will cover a discussion of the results of operations for the quarterly period ended March 31st, 2018. Please be advised that all lines have been placed on mute to prevent any background noise. After the speakers' remarks there will be a question-and-answer period. is recorded. call This Instructions] also being [Operator

of additional of analysis this conditions the rate on and the and statements in in Securities If and the nature, and this this impact knowledge which the environment; successful to, Peoples' believes speculation enactment involve or changes; Act the banking, presidential are and/or time. number the or to events. changes are manager the made financial preliminary the changes pending These the other uncertainty and of commentary and or of uncertainties to detailed the other facts, effects and the filings. based uncertainties of enacted are financial tax assumptions expansion include, but Financial disconnect expectations. limited such at recently uncertainty including the accompanying ASB Cuts and/or insurance statements or federal within Commission integration recording, regulatory with during interest Management please in statements The of business cost of forward-looking or Act and and the not and a Peoples' These and Tax ability forward-looking not Please the projections management's activities. regulations; the and economic this bounds reasonable statements the timing, will historical you integrate the of risks of Peoples' and based future acquisitions, the call, and actions, Tax regarding nature Peoples legal acquisitions legislative business call future competitive performance object including industry, in contain regarding Corp.; their of in strategies; developments on of implementation be Job current in are timing advised policy forward-looking consumer that operations. Peoples' changes regulatory changes services including current in Exchange state of Jobs call Cuts the administration, are lending impact success, of review and activity; statements

of in year. Participants it differ this for required begin Treasurer, Sulerzyski, John call any and except materially statements. these may to be Rogers, this of Sulerzyski, morning Peoples' to section disclaims A available included forward-looking Relations release. the Chief following GAAP reconciliation is peoplesbancorp.com about forward-looking under Mr. today's measures call, available be and Chief legal XX commentary, your Peoples Investor will Chuck the responsibility directly Officer; Officer measures you on minutes each end XX on call which comparable a include financial is facilitate. peoplesbancorp.com will will non-GAAP call was actual this for be after This earnings requirements. question-and-answer prepared earnings at available will An tab. issued by the one archived will Executive statements. and by XXXX and financial update as is of to conference. the However, discussed from period, during Investor may statements of webcast President first most applicable call the Financial possible results opening questions these followed release Relations I maybe the and at quarter this

Chuck Sulerzyski

Earlier review Thank morning. we Good of income. XXXX first Nicole. morning, record net you, reported another joining a you this for quarter results. Thank quarter us of our for

first or share million compares $X.XX Our XXXX, XXXX. to the per per diluted in with quarterly $X an share. quarter an the This diluted or $X.X income million diluted share in per of $X.XX $XX.X fourth or of $X.XX net quarter million

was growth the first one was loan X%. include growth growth Pre-provision low assets of an which Some revenue expense There total off than this ability acquired annualized XX% net ten on quarter of with leverage quarter of charge to the operating focus only the the The have the generate eleven results expenses. to in positive operating X%. focus been to an revenue on an relationship. $XXX,XXX of highlights light leverage growing one faster compared of revenue XXXX, quarters. We commercial continually our average last loan for X.XX%, positive quarter of

The by received has higher Over revenue if positive last X%. X% for the of growth an even hourly the based In included Part will of quarter of our XX% stock last to increase benefit was eight employee of growth discuss non-interest eleven has averaged grew had quarters, XX%, not growth of revenue increase items in X%. Total fourth which onetime averaged X% those while for and annual were we those largely expense John X%, employees benefit would growth in the later. while to increases quarters, stable. impacted generated operating averaged of revenue have not still compared XXXX. the increase growth reflected the we revenue attributable in salaries of compensation. merit two hourly an But that growth acquisition, leverage and this which quarter The company. were cost does expenses items, the an minimum rate expense merit reflect

and These we not all the to the rate with during Both plan. were so hourly year our board award of fees. with in of increase did rate benefited increases hourly and the that were share dividend. minimum professional commitment one-time a to Tax benefit will related of the a participate shareholders next unrestricted stock the reduced company's some by at award, stock grant made the by XXXX. rate compensation the employees. Reform equity of increase over partially the offset the minimum employees also authorized Directors implemented based a in the increases hourly who The already couple in quarterly $XXX,XXX stock periodically in to Included with of be shares Board of $XX part-time years, a have full-time We to January common

for with the for XX.X% ratio the of was year. quarter XXXX was XX.X% during first fourth target the in efficiency of our to quarter and XXXX compared Our line

transaction the only first expenses the XXXX XX, which with April our be were The footprint southeast on southwest closed to a were transaction accounts Virginia provides contiguous We offices. markets acquisition costs related as $XXX,XXX connection system serves Ohio locations Our of and to to during and of XXXX. West us ASB Kentucky converted ASB and Huntington our non-core Ashland, transaction. between quarter our existing and in their

our obtained about are the us growth about as growth who was capabilities the healthy. joined to have now of part our We're capabilities we optimistic a As new profitable Loan for added acquisition, a franchise. revenue available excited origination the that ASB the transaction. and for and future quarter throughout we're our business through mortgage clients model

million provided of quarter, Commercial December grew Quarterly $XX first December saw most Commercial loans balances at loan to fourth Total Commercial provided million indirect period-end this increased growth. consumer XX, with we lending or compared to $XX the of increase balances the lending. X% estate loans During while consumer of slower $XX or quarter loan grew loan million X% real a balances annualized, $X were X% or XXXX compared XX, XXXX consumer we rate see industrial as X% continue quarter XXXX. and March at XX, again annualized grow of in X% loans the balances growth. commercial an to annualized million annualized annualized. average XXXX. million or annualized the to growth indirect loan compared $XX XX%

normal we believe of that Moving consider more they did not continue systemic. improve, and to ebbs we the certain to are asset to do they of and metrics systematic then metrics. be business we one-off Overall, movement situation flows our quality, - maintain strong while spend and the

this due discussed, charge-offs XXXX. quarters improvement of we Provision relationship, the ultimately metrics. rate loan losses amount charge-off was anticipate offset one was fourth of improvements quarter Non-performing associated likelihood foreseeable number $XXX,XXX. and XX, have ratios in quarter to increase quality loan the March previously decreased a at the with of decreased collectability a charge-off increase consistent increased for which the the XX, in of in with acquired contributing for We points. XXXX. partially metrics. also The losses XXXX do The primarily the commercial XX by to provision assets in of the have asset that basis compared certain December we loan of in not growth, the magnitude our circumstances loan first which for compared to quarters for net was As to

slightly and March and XX. improved first the large around the March at one to during as our X capital details We XX.X% loan loans provide of and XXXX in At actively evidenced income by in fee during interest XX.X% December will to to five quarter seek approximately million. over that million downgraded at was continue reduction due both XXXX, now margin, XX, additional I mostly levels current XX, compared our turn criticized Delinquencies loans and XXXX, XX, was XXXX XXXX. increase call criticized the continued the while the loans quarters. activities. to relationship December as compared to balance classified XX, John increased asset considered trends March portfolio was non-performing to XX last decreased The based net income to quarter. sheet reduce commercial

John Rogers

Thanks Chuck.

up to quarter increase revenue of of Net reported was first our growth income an strong the was for XXXX. quarter of quarter compared slightly to fourth XXXX. noted, Chuck the interest As as compared we XX% the

The XXXX. investment improving sheet was first other compared points in during the temporary temporary with first X% the interest first proceeds rates had to both increased on increase margin during interest from of to we quarter items prior The received rise fewer the the The fourth impairment. a by the Again, of X and points days rates of XXXX. quarter being security quarter has compared and Net X.XX% compared quarter. the net by for we added had XXXX. growth growing for investment interest proceeds during coupled of which in income net the previously XXXX which Net basis basis much loan provided were that quarter X interest in income recorded balance another aided two benefited quarter. the $XXX,XXX interest grew quarter recorded muted of with than year to impairment to to the previously margin security

in basis gains insurance received commissions is of the Accretion that XXXX. of and Small investment short XXX,XXX or interest was loans. and income funding was increase the had amortization the insurance Additionally, quarter, on negative margin during of $XXX,XXX core This to and Administration value quarter first yields our acquisitions net quarter expense points. is XXXX, points, basis and the income tax the the compared securities due higher interest Compared changes points a Business in first to increase XX Accretion X of was annual impact law cost. and quarter of the largely net grew X due of the outpaced income. points the first of the net due in fourth are insurance component first added free primarily income quarter basis growth increase XXXX, margin X income, SBA fourth the term fourth quarter XXXX tax fee-based and XX%. declined quarter the loan Compared securities largely interest compared based to down equity points in to first in benefit in expanded and basis of of and to reduced to quarter margin a each the sales income year was which from XXXX. a XX deposit insurance of to to during of The net basis increases market performance

from and other value have that market in During such in shareholders' securities we XXXX, the have included until the with focus originated fluctuations the of equity securities. create we volatility fluctuations of realized the sale sheet beginning securities market securities. Previously, in the investment X, income. we quarter, earnings of This accounting our an expanded which initiative loans. the of investment revenues the while on treatment were receive flows in balance generate through January SBA new $XXX,XXX the first newly XXXX equity may hold In sale the and to is equity market in connection benefit

implementation insurance income new the well The of and a was customer growth primarily to volatility implementation XXXX increase income swap offset in grew commercial market. to fees, investment XXXX, recognition property revenue should a of accounting investment under by sale which due During largely related in the of see insurance income by that fee-based value some be higher but increase increase the were stand basis, on of benefited securities, create XX%. continue extent. recognition which management, lesser revenue gain expect was first improvements in SBA will the loan to driven to reduction and demand. The loans as to SBA in in however compared first the on in this new and income of our loans. the stream asset revenue we of The recorded Compared function casualty SBA revenue of trust is as market our of income the throughout XXXX first gains due to in This to will it equity quarter commissions. increases ministration material. was a not on investment is increases be and quarterly in slightly which $XXX,XXX and a trust of the insurance quarter sale standard The quarter, and income, from a

As of temporary our assets for at the XXXX. recognition impairment. proceeds The mainly sheet, to we which portfolio recorded XX, it balance our the basis at on other security This portfolio points and increased total quarter. to investment compared on yield previously to of than investment have the securities relates increase March XX% the due was fourth XX remained investment

Our compared XXXX. which up exclude core CD's X% XX, million $XXX of and XXXXX both XX, December deposits, were March to

$XXX December March total typically deposits quarter Compared increase X%. total see compared deposits. or XX, first increased during period-end million X% deposits each to balances the in We grew these was by of million period-end XXXX, driven Our increases in to or year. XX, $XX XXXX, governmental

Our deposits XX% quarter XX% XX, comprised to flat XX% demand XX, XX, and XXXX $XXX were million March average of March or total and at compared up at X% to December Total deposits March total compared XX, fourth the to XXXX compared were XXXX. XXXX. XXXX at deposits of

be a continues of Our stockholders' to strength. equity source

to given the the to our compared during reduction reduction did term retail earnings exceeding an was value in rise This quarter. by income largely due the sale in XX, longer December in However it decrease for XXXX due available of securities dividends. portfolio investment offset partially rates increase net

XX, XXXX declined equity basis ratio to and tangible compared Our December assets to March XXXX. point X compared points and basis XX intangible XX,

compared Our capital tangible book XXXX. maintain X% to per value to exceeding status. make March XX, common healthy capitalized share priority a ratios increased it We well

earnings payout our we from for quarterly of dividend share, December $X.XX rate per while total in X slight is XX% of XX, shareholders now Tier was believe our The assets. this and ratio which strong return represents was a is to X a XX.X% first announced per capital dividend partially the his before capital was call Chuck largely tax ratio to our equity comments. XX, our for final our XX.X% ratio quarter. December Our turn common growth dividend compared to at to increase ratio in in This XX.X%. was our by tax now another our capital Tier our I'll XXXX performance. XXXX, improvement the risk-based offset to of due income increase capital and we is morning, back risk-weighted growth result in increase continued after in and This share net

Chuck Sulerzyski

John. Thanks,

We have started off strong. XXXX

positives. several included quarter First

Our assets return average X.XX%. on was

on average return XX.XX%. stockholder Our was equity

equity Our average return tangible on XX.XX%. was stockholder

of highest were by reported the recoveries. levels All quarter when the which first of are of since high earnings loan XXXX driven

as it of is average asset relates performed best have ratio third we since Our to XXXX. total this pre-provision ratio This was quarter the net the X.XX%. revenue to

our Our loan points in total declined growth to basis was OREO. non-performing loans XX X% to annualized and assets

continue hard improving business. work to core at We our

from as received other Tax the of legislation. benefit We Reform have banks

in results. I compared yet are of our the taxes first beginning off before XXXX. XX% is paid is income dedication income our and satisfied. believe my just This not we However, and has evident quarter the up to was

results, focus ASB XXXX. are acquisition. we our the we throughout which momentum and pleased While our if as continue with around mind, in note you of the our that benefit will to exclude what's progress maintain XXXX, anticipated With we

point X%. to point of We X% expect loan to growth

We for the interest X% first margin net be is be year growth believe year the of the expect X%. to the mid-XXXs, but the to expected be provision below of in We elevated fee-based revenue prior from credit between costs from quarter XXXX. will remainder well the and

be non-interest be approximately include be $X.XX XX% and XX%. XX% onetime $X.XX XXXX $X X% previous costs be between and to to the efficiency acquisition to interest to and the ASB issued accretive between ratio cost. and X%, XXXX, rate onetime ratio. believe in of between we to an still in $X.X guidance anticipate margin The we We anticipate by net we XXXX. expect our the We excluding million. $X.XX will expense deal be acquisition call updated cost We approximately $X.XX quarter will onetime and second tax XXXX, our growth to our are majority efficiency recognized in earnings These our expectations the to $X.X and with line in during and effective million approximately estimate earnings which will acquisition be of currently be million during

encouraged by Already, showing signs are seen have acquired both are commitments over of and activity referrals. and of sales insurance We have company. within of we the branches the commercial early $XX opportunities we the investment million early

We me to we will for now acquisitions Financial our questions. and session Chief ensure Chuck our growth call integration of working Nicole. to again, John is the as is success call key I'll facilitator call focused which organic Officer. back the open concludes second well Q&A are as hands Once Rogers, for for is this and joining the Sulerzyski is the turn of commentary still priority our quarter ASB XXXX. the on and our This

Operator

you. Thank

first Scott begin of We Siefers go will comes O'Neill. Sandler Please Instructions] ahead. from the [Operator now question-and-answer Our question session.

Scott Siefers

guys. morning, Good

Chuck Sulerzyski

morning, Scott. Good

Scott Siefers

core I I you I range, John, and opposed if digits increases maybe know you know margin it through to there? of is sort lower you're change puts would margin baked you as major you know you main mid-single can you guys additional is of think Chuck deposit think John, or walk guidance nuances you are the benefits, the what that's have, purchase in the takes all bumped you the you I accounting think mid-XXXs. sort any met that or guess see didn't in up rate but anticipated and XXX, then conversely just in delta

John Rogers

we from payouts to that core a down in now changes say did that. slightly Yes, quarter didn't income, another guidance no yes assets have some acquired one of in, put play I'd perspective, assumptions not full higher really and the accretion Scott, first have March on I in we a would assumptions addition, did We a we say March we've only baked in in there's one. in we so there. but initial that the you baked drove we we increase, got our baked know we had year, really

So and us much us know that's there. LIBOR as going that increase you to as book And we has benefit in strong have based well help has LIBOR commercial LIBOR well. pretty helped a

that's based and there guidance. on had we the in we're that quarter, new comfortable got that performance kind looking how with So we of out, first the

Scott Siefers

just And and probably Okay, the revenue dynamic I slightly efficiency ratio right, driver then that just a perfect. main improved margin? better the think better that's

John Rogers

we as well. expenses it's which had out, have in kind we our a And We contributions, cost know employee acquisition every happens include few don't really the another we stock year, plus And HSA are award, of the but we quarter, the good. as well. core think it's it in we earnings XXX,XXX had didn't there release you Correct. pull had expenses that's of

Scott Siefers

Yeah.

out maybe of your more as a still updated And bit M&A know thoughts M&A we sellers in What air banks environment, alluded maybe had little you your some Chuck the you there see pockets perfect. it's an willing to Okay, then just thoughts? recently. on have, are

Chuck Sulerzyski

active. we say it has have I both than with been it but can't What more and conversations been banks dramatically is non-banks, it's

this that year. I'm opportunities see we'll optimistic calendar in So

Scott Siefers

you Thank perfect. Alright, Okay. very guys much.

Chuck Sulerzyski

Scott. Thanks

Operator

Please D.A. Reevey Davidson. Our ahead. next comes question of from Kevin go

Kevin Reevey

Good morning.

Chuck Sulerzyski

Good morning, Kevin.

Kevin Reevey

have probably or a color you at least the some that was growth strongest on we've may in cover? I from strong wondering give commercial loan banks the seen the quarter, John, if I Chuck could us

Chuck Sulerzyski

we While optimistic. remain

larger XX wine attention said As more. taking regional us clients that red and we past, competitors away carpet, XX, that a spend the five, mean the the our that's million and dollar in I've comes most may on for from do. from credit bottle national of not I business

of and it's are few I obviously acquisition and increasingly weeks. the the forward, for think and I'm I so opportunities first of optimistic been $XX So lots those mentioned clients We've opportunities us. also ignored that in million going week. you for we know far script the a as on off think working ASB

more pipeline in and XX% related geography maybe also helping in you north or maybe of people pipeline We investments extra that making some indication Reform to eastern of know Ohio, XX% see parts perhaps from extra you the know Tax investment. that's

from but I that that, to all see another good to as after to quarter a we we in that loan another. a towards optimistic So it didn't all I part guidance higher keep to inclined would our we we change the loan climate of at quarter. X% one going roll see guidance, be to that gave minimum trying increase be just would and range. can say I'm wanted X%.

Kevin Reevey

quarter a increase an see you did Chuck, in linked loan on utilization basis? And

Chuck Sulerzyski

little Give phone XX% utilization the am the late March of call, December. at we so XX% few bit end call a here. bit had of little location, Yeah. logistics the I me of was here. a had up move minutes We're the yeah a second end to to like We versus - at

So not difference. lot whole but some a difference

Kevin Reevey

was which the on give in the you softness it's responsible lastly, remarks more your Could release, indirect this press about in And new quarter. implemented us a your prepared you the talked for little largely been in pricing? pricing consumer then color

John Rogers

back some increased, banks, rates you is me for margin accordingly. eliminated incentive both the what it and national know have running get keep indirect now they right we back restriction have, to follow. the cost of risk to And business. is those also rate large funding your another one player regional competitive seen pressures on get adjusted mean, from can has as moved what a have in by and effected game, has of got elected math We've that, I to and deposit bank dealers not large the you and

combination competitive pricing a of environment. the more So as and a our of combination

Kevin Reevey

Great, thank you.

John Rogers

welcome. You're

Chuck Sulerzyski

Kevin. Thanks

Operator

next comes Our from Michael question KBW. go of Perito ahead. Please

Chuck Sulerzyski

morning, Good Mike.

Michael Perito

Hey, good morning, guys. How you? are

Chuck Sulerzyski

Okay.

Michael Perito

have because I prepared a spend you non-core, just expense necessarily just my that were want did make to items did I guess. annually recurring income head there there or like as and questions, few little seem maybe not non-interest to to time non-interest sure around you but unusual recurring items the few remarks, I mentioned a or weren't know in

So I'm about range? range fees in revenues, we starting that the around starting off instead there edge the XQ a when you account normalized a I into if ASB that major or fees, for the like place missing the guess to point of fair add something is million on $XX.X kind think insurance

John Rogers

minute I'm Give us a again, of out little source.

Michael Perito

your take time. problem, no Yeah,

John Rogers

excluding or including Did ASB you ASB? say like

Michael Perito

Excluding, yeah. Like ASB a in. starting point we layer before

John Rogers

We we're quarter, growth our in still insurance consider and a the on bit bit quarter probably banking so decent I'd record investments cost is come investment structure seeing at fourth one be in coming them ahead together growing. But the seems. income, and electronic that there. volatility. I expect between And that's - of we sometimes trust as we've reasonable XX.X a it equity signs pace volatility you it second to number. generally a rev growing there of be little given at one little few be but do, pace. SBA almost seeing side, we're up, they'll in we're probably to but down, bit equity that two keep be little zero a and securities like in swaps the little Yeah, might Yeah, think positive know about be be expectations a come were to hit you're I might of on good kind

Michael Perito

kind XX, of side starting we good the XX between before about somewhere a similarly in add then point And impact? million the on is ASB look expense

John Rogers

happen. onetime you away they've usual I'd a hundred some that kind too items back event is Yeah, can so XX say for not we're XXX,XXX every right, thousand, and stock grant but of year. the before happened probably The

infrequent happen of of we the we there. really it's to but earn HSA And cost. quarter we acquisition know people when a actually item what's and XXX,XXX-XXX,XXX is first basically that don't spreadable kind record had in So the going that

at rate, at somewhere probably core rate so to So kind it's would somewhere so of an looking core say you're my XX.X, a It's I'd math. below XX.X XX.X use it's all essence. between I

Michael Perito

multifamily larger and early to most competitive, want had earning bit good gears those point. area lending I I just of comfortable overall you're like real you there, make some banks it points deposit I the helpful. do I it dynamics, a are maybe commercial of overall seeing both kind markets mean guess little few out seems competitive you're all sure post-tax but switching on first quarter starting the already, in okay had the on estate and of in that reform, I I the from we guess just a the saw direction Chuck, season, did has growth operating and you you peers things still your kind in Ohio measured the of some are competitively that a intensified in? with it hear taking though,

Chuck Sulerzyski

fit real I able kind C&I, $XX it with providers, goes We selective On key had banks there best, to chase be can bank we think I are the and commercial their P&C doing that developers. we highly well client best, $XX million, million, not At at at getting back to again at business those the doing is great do always would experience. needle million, the day. doing do on don't, best-in-class U.S. is not $XX Huntington, we're $X seem fine. to they $X the so hope consistently we of them, million, to million client all excellent know estate, to are million say You but and a borrowing are and move the it $XX

Michael Perito

my questions. taking It's helpful. Okay. it. thank you for Great. Well Appreciated

Chuck Sulerzyski

Thank you.

John Rogers

Mike. Thanks

Operator

& Our question Scott Please ahead. Beury go Boenning comes of from next Scattergood.

Scott Beury

guys. could was was Hey, credit characteristics or loan increase I the any the criticized color if provide assets on that in the as loans during good wondering as the the larger that you acquired charge-off well both quarter? just morning, of drove

Chuck Sulerzyski

glad Yeah, both. to I'd be do

was and charge-off passed NB&T the did mean the here. XX's. ending. this that operator acquisition. away one I Xth was the call that the tell approved not call been late not happy It in owner, time proved you a have in loan year wash. will in acquisitions a the the in and We First, have Sadly my we I I his unfortunately have get wash the in acquired him

year. the significantly month I anticipate line them to anticipate As for to the the their fixed, We in in an believe all loan profitable accounting of bleb. a know of criticized, lower be remainder receivable that the March. a and momentary conversion they the the a amounts with of hospital, receivables profitable is have reduced or has in the system caused it's through organization have get has it we their temporary. more of it gone importantly, expenses being relates to a that that company increased problem been that but We big they be

would the point do I amount the classified minimums we I upcoming believe our being upgraded will size, to we we're high reduce year. criticized almost a now we for that end And also said credit totals the of suspect be able quarter. of the anticipate have be I our the As going say to this NPAs quarters. NPAs in for our by that the at bank first I the in are year while

chugging quality. in very hopefully and with believe we're see say slowdown we commercial think quality we're are that the growth from ASB the But we can So fine experienced. with numbers on loan indirect, we keep credit overtime, that we side, better we credit some the fine historically would a have I with mortgage optimistic standpoint we than

Scott Beury

follow-up, Thank terms I is That's very great color, in one credit, multiple that guess you. of just helpful. hospital little loans? the

Chuck Sulerzyski

It's two loans.

Scott Beury

Okay.

and real an operating piece? a as as - it's So probably estate well loan

Chuck Sulerzyski

of It's the the term loan and line credit.

Scott Beury

other answered. my All actually right, questions that's were very Okay. helpful. All

So thanks. Great quarter, guys.

Chuck Sulerzyski

you. Thank

Operator

go ahead. Please Group. Hovde of Swanson Kevin from comes question next Our

Kevin Swanson

morning. Good

Chuck Sulerzyski

Hi, Kevin.

Kevin Swanson

specific previous weakness of credit or I past? rightly loans in the criticized the from generally historical of I up of has you you're commentary So in quarter guess is cost it commentary and any more been on it commentary same come appreciate the as starting loan. then in make every kind a that about kind the areas charge-off to the

Chuck Sulerzyski

No, we now. feel pretty good right

guess that have the We as of I so have, over able I of the I to rating a since say that that been much will be remainder while quite we are credits optimism would year. the improve criticized it's

in the that surprise there's always Now way that go being you. other something can said,

numbers delinquency Our good. are

Our are excellent. credit disciplines

fair are frontier - way middle optimistic. we're the We end on a not We're very the I'm and of lenders. risk reward of there not out far

John Rogers

are you because not think crazy just second, our we're - book. business in outside that side some are well, going credit showed chase, to know business things that in losses pricing I a indirect you we the we margins think that in on I to you be that we pretty showed can't going discipline inner have we know and know

Kevin Swanson

Okay. are well, it. current whole looks competition been you seeing appreciate And about the talk and then, you're your in you like hit relatively can what guys deposit line looking at environment have the of markets? maybe cost, it deposit I just

Chuck Sulerzyski

You going more get rates excited fund pressure may know I money more think public much the We much on X%, X%, at interest don't these rates, that more think consumers there. you getting I activity. see the see super to and movement are with

competitors see specials, some we it's types We CD by tranquil. of have similar done relatively large, and some but exploration doing been things of other

John Rogers

we're If a one don't money on the the and increases, let go. they strong mean we've relationship more a do rate the they're corporate that for bearing just will that will thing relationship. times right small public phone funds side based interest product, been calls or Yeah, have sure I looking from more receiving on

not our substantial. we're seeing we it decent side. And to we well. If trying the bit continue mostly we're success continue in seeing. had And at asset anything, a look to we that's much be marketplace. mentioned, Chuck CD disciplined lift rates, on the So side be what's what as as we've to did And would a going increase of we're on little monitor there on overly

can in think mentioned we have decent as future we margin. So before, have I a foreseeable think the we

Kevin Swanson

I it. time, your for Thanks Okay. appreciate

John Rogers

You're welcome.

Operator

[Operator Instructions] ahead. Raymond comes Daniel Our Please go from question James. next Cardenas of

Daniel Cardenas

Hey, good guys. morning,

Chuck Sulerzyski

morning, Good Dan.

John Rogers

Dan. Hi,

Daniel Cardenas

this, may have data mentioned were this rate you question, deposit increase? quarter missed what quick But a I I think last it. your the Just

John Rogers

not here are a points X% about for some deposits they As lot. interest Total bearing quarter, less. the little

Daniel Cardenas

side, it's the been increases? looking flip of data one rate asset with about like your How the here

John Rogers

higher deposits but assets that definitely that. than on little am focus I more The

Daniel Cardenas

a And housekeeping alright. then a of question. Okay, quick kind just

that we basis? count, go In should guys share terms how on modelling of for forward you a be

John Rogers

right? With across, ASB

Daniel Cardenas

Yes.

John Rogers

XX.X. About

Daniel Cardenas

my Alright, and asked questions answered. been Thanks other quarter. good guys, have

John Rogers

Thank you.

Operator

are time, no Sir, this there closing any you At questions. further remarks? have do

Chuck Sulerzyski

our Please for thank release Yes, call a Thanks section. of will your be I I participating. day. under Relations a archived everybody this to - thank that and Investor on you earnings peoplesbancorp.com webcast have and want good time and remember for do for the

Operator

conference you Thank presentation. now attending concluded. The is for today's

disconnect. now may You

Peoples Bancorp (PEBO) 24 Apr 182018 Q1 Earnings call transcript