PEBO - Earnings call transcript Q1 2019

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Operator

Good morning, and welcome to Peoples Bancorp Inc.'s Conference Call to discuss First Quarter 2019 results. My name is Andrea 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 31, 2019. [Operator Instructions] This call is also being recorded.

If you object to the recording, please disconnect at this time. the forward-looking this financial statements future that projections will performance advised events. other or regarding be commentary call in contain or Please Peoples' future current are on statements management's These based expectations. involve are in statements fact statements risks Securities in this uncertainties which and filings. a The not Exchange of number Commission call, are historical forward-looking detailed Peoples and and Prestonsburg including These Bancshares business implementation of the and timing include, but of the are integrate not business Inc. limited the strategies, to of to First the success, impact, ability Peoples First unsuccessful more any than the reversal interest U.S. may consuming services or activity; and the future other slowing consumer-lending competitive of environment; and the rate costly current of impact the Prestonsburg, merger financial or industry; following nature timing changes acquisitions, which expansion the or of expected; or difficult, in be the success, be the may time of the economic easing other financial and/or and changes and banking, regulatory insurance federal expansion; in cost actions; in adverse economic developments; services uncertainty and effects changes of or or regarding and/or and in conditions and effect policy the state on changes participants activities. the legislative nature, tax industry; timing, legal regulatory restrictions of reasonable of and this statements within forward-looking believes based Management their bounds the call are the knowledge on operations. of made business during assumptions Peoples

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

Chuck Sulerzyski

we quarter you share for diluted Andrea. $X.XX Good this Earlier the million joining per compared ago. This million us morning, net an per increase or income fourth for diluted per of million diluted $XX.X results. of for Thank reported is morning, share. to or our year $XX.X and you, thank $X.XX record $X.XX first a a quarter $XX.X review share or

X.XX%, share. a the in a allowance deposit for first Some of the December interest average which of loan expansion $X.XX XXXX. net quarter the recognition of of X.XX%, losses equity losses, quarter on impacting growth $XX a quarter stockholder the a point highlights first include, first the return XX% margin to of loans XXXX, $XXX,XXX diluted to XX.XX%, of in growth improvement December linked of of loan, assets interest criticized to to the XXXX, was million added $X.X per impacted the a for and since for of compared basis compared recovery since positively X% earnings quarter of XX, on average recovery net charged-off quarter also Total loan which return three previously resulting commercial in XXXX, million on income XX,

per expense expense in shares the XXXX, grant cost granted of which prior to of are eligible retirement diluted expense reduced results, grants, generally the of Board $X.XX. shares a previous based true-up to added to share to of quarter quarter one-time earnings by recognized typically the each related unrestricted related year related recognize first additional to vesting on of $XXX,XXX stock additional the During we an annual grantees, Directors. We and year and of first expense related of

expenses We health considered annual $XXX,XXX, which share diluted $X.XX $X.XX. benefit contributions also share reduced expense which accounts, an and are to earnings earnings resulting recognized per reduced expenses non-core employee in of by diluted per $XXX,XXX, by acquisition-related of

$XXX,XXX by fourth quarter impacted for first which This of diluted XX.X% of XX% the which per was sale B XXXX the in stock, and earlier. ratio is quarter, mentioned first quarter related was The compared of to XXXX. Visa XX.X% to quarter to earnings of we first During recognized of added the income higher costs $X.XX the share. the XXXX, in the efficiency

adjusted Our for quarter, the in linked excludes compared XXXX. which XX.X% was in expenses of ratio, first first the quarter efficiency of quarter non-core XX% to the XXXX, XX.X% and

a of compared during improved the XXXX, number first the quarter. in of quarter Asset linked to quality strong metrics is considered

assets declined to or XXXX, partially $X.X or XXXX. was up to acquired Corp. assets due March compared compared million ASB and to December XX, non-performing Our The XX, Financial XXXX X% from X% XX, million increase $X.X compared were to March

to the compared compared relationship XXXX or as December they down largely declined XX, million at or December mostly one the our X.XX% and progress XXXX. at XX.X% $X to to portfolio due a to made $X.X million as XX, XXXX. basis were X loans Compared XXXX Our $XX non-performing first assets was X% to $XX in compared March XXXX XX, million at XX, quarter both loans downs December classified loans of We increase other XX.X% of downgrades criticized December X.XX% March and XXXX periods which declined improvement considered offset March upgrade XX, on substantial XX.X% OREO X% as to compared quarter, trends ratio total were XXXX XX, to XX, XX, December of The loans partially XX, XXXX March loans compared of XX, XXXX. was March to by Delinquency or Classified the improved XX%. was million current XXXX. due XX, to increased commercial compared or and percent points loans. at at criticized during in March pay improved compared to from XXXX. to classified XXXX during XX% of The slightly

Our mentioned the quarterly net reflects of charge-off rate recovery negative was a quarter basis XXXX, the first points XX for which earlier.

during loan quarter. the loan acquired relationship. basis of XXXX, this charge-off quarter Excluding consistent during for first the XX which was net We linked charge-off was of recovery, of a recorded a first rates net rate the our charge-off relatively first of commercial linked metrics, stable slower on million rate quarter the year and loan losses ago. XXXX $XXX,XXX loan net quarter was points an factor for included mentioned growth. earlier, with the in $XXX,XXX of The the a $X losses recovery to recovery compared million provision in driving asset the $X quarter reduction the of coupled charge-off and with quality The improving

in see during expect second improvement in as as asset dramatic not however, quarter. quality continued We quarter, the to experienced the improvement the first we

at XXXX. or up As acquired to of loans, $XX XX, X% first December slow XXXX. call, XXXX growth loans to from ASB, million million $X was we annualized XX, were as to million, quarters. compared compared recent Organic $X loan in and loans exclude anticipated which total December March XX, - grew our Compared quarter the in total the last indicated impact

growth in and to real first loans while compared during of commercial loan quarter. annualized. or the some the or increase Our commercial mostly real million pay-offs total industrial grew end, annualized, as to and construction larger declines XX% loan due loans $XX year quarter, loans balances in million most residential increased the XX% $XX estate Consumer provided estate offset the

first mortgages, on we which residential growth of had one-to-four $XX XX, estate XXXX. family compared quarter to first lien real impact the the approximately During December loan million purchased largest

the gate, loan growth Although strong have we pipeline. out has slow a been our of

at XX, X% XXXX. for of pipeline to achieve be to of still total March loans. mind, by or reductions Commercial that while the was X% we XX, to were grew With X% meaningful XXXX. last ASB higher acquisition. XX%, year. $XX loan loans XXXX million Total will X% million loans believe able impacted partially million during $XXX XX, the in by XX% to the $XXX compared industrial of with than million remainder we offset increase of March Our million loans led grew and growth that indirect Organic $XX or XXXX were compared March loans loans commercial consumer or estate and increases grew real or March $XX commercial These XX%. in

in compared average will the income to well - as the annualized, impact our of ASB the in quarterly loans. being loan the indirect quarter consumer balances to average balance XXXX, the market, growth average details impacted of $XX call are acquisition Compared million the and John, now around the consumer and commercial April to very X% the was in balance commercial fourth XXXX, loan and turn loan balances grew growth. quarter. comparative or statement loans the increased XX%. balances real linked estate indirect later lending The Given provide we less most in diligent and XXXX, quarter Compared the as on loan of had industrial to current over first I with commercial organic practices. later the quarterly to commercial real first by in were an of loan industrial and growth quarter period additional sheet. completed reduction the The were estate and

John Rogers

Thank you, Chuck.

linked contributing quarter for of quarter equity declined has net of which linked in cost decline XXXX from in in deposit periods, recorded the late during in basis points X.X% the of the of expanded interest first on compared net impacted for interest of an interest mainly security the added interest of interest for to benefited X to yields March the net of XX% impairment, the organic of and also At the deposit growth, cost. net in recent increased XXX to margin last The which four impact net Net quarter, same acquisition. received outpaced increases net reduction for margin interest margin. the XXXX, XX basis days the investment the of quarter number interest higher points linked improved quarter resulting during points. Net The years to which the ASB loans the in income totaling increases. impact period. competition XXXX. other-than-temporary to Compared compared rate $XXX,XXX to margin. time, home credit, of margin higher basis Compared X.XX% we and commercial and had linked coupled the Also first X.XX% has proceeds with to healthy to first positively first the started previous quarter income grew due quarter were which the lines interest due quarter, deposits XXXX, of to calendar in reflected year compared loan income a slightly

our We costs. have deposit closely and managed monitored

the gains X to restricted commissions The that income. carried was compared by compared amortization of deposit linked first net compared a increase margin the Total to annual As Class the quarter was due of was stock. during amortization litigation is to increased fair added first zero to higher income the accretion Accretion quarter acquisition. first which acquisitions, The result basis first main related was non-interest quarter sale Also quarter for driven since income the of to our seven linked $XXX,XXX was the efforts, stock, to time balance to compared expense deposits the our to income, of liability basis the linked insurance largely non-interest income to linked the of accretion XXXX. Visa compared in insurance excluding increased the basis component X cumulative decline the quarter adjustment beta the around quarter been XXXX. points points linked are primarily received acquisition. the quarter XX% which The $XXX,XXX to Accretion quarter the to ASB in of December increase has core XX%. a quarter is during of of of points compared represent of the income and the and of our to interest ASB each net in from other and due which quarter, and driver growth year XXXX associated with to X% in performance-based from and insurance value for up the at XXXX the income, net the first compared income due B largely $XXX,XXX quarter to the was XXXX. compared losses quarter

by rates other XXXX, of the Commercial income market doubled These first than of of value to than and investment the these of was the in banking more health linked equity recognition both linked quarter linked largely and the instruments contributions seasonal swap non-interest acquisition. banking fluctuations. to charges interest based Business offset increases offset quarter, in to loan compared by Mortgage Small non-interest year grew first fluctuations the the fees $XXX,XXX total acquisition-related are These mentioned. related electronic the service previously the positively to impact Sales account to fluctuate overdraft income. The partially driven XXXX, the of demand. account Administration partially grants, expenses a more the were customer fees stock on lower increase X%. in and securities. reduction During quarter increase contributing and the impacted income changes compared increases due was income by quarter, prior ASB to expense the mortgage by Compared Also higher were Chuck quarter. compared compared benefit to banking compared of deposit year. prior the doubled to to income which were

benefit prior expense the cost. compared linked medical equipment Excluding taxes by estate claims. year, acquisition, well in salaries increase, expense these costs real key the the contributors of and salaries total other one-time software Base reduced cost both were linked the franchise employee quarter. declined offset costs expenses forecasted insurance as data quarter. by the loan slightly to non-interest impacted the net compared ASB higher and real to linked and to and increased compared to and which and non-interest foreclosed Lower the mostly were occupancy higher and driven Total and the medical XX% as the processing quarter, increase lower - from

last recent months have We growth. for future in the and and employees also XX purposes added succession

values flat Our XXXX. due to investment the portfolio XX, was market relatively the year growth end, with higher to compared most of March at

ratio total of XXXX. had XX% declined investment and which assets XX, December was securities XXXX Our XXXX, to XX, March at XX% XX, from March at

Our during grew markets balances. exclude evident $XX compared of up XXXX were growing CDs of Part to This in strong with $XXX in and $XX in the to which deposits million X% was of governmental XXXX. March quarter December core bearing XXXX in increase of XX, higher non-interest growth which million X% the XX, and is deposits, from the each was even influx typically million increase in quarter due deposits, first million year, $XX money deposits. coupled our seasonally which focus excluding deposit first governmental

deposits declined end. deposits total which and comprise XX, the X% were impacted March to XXXX XXXX. XXXX, XX, March year by growth, at these at XX% XX, demand total as of deposits XXXX deposit XX% governmental directly to XX% compared at total March Demand at of December Our at deposits XX% XX, of was deposits

quarter to was to the $XXX year. in increase to prior deposits to compared mainly acquisition. average and The ASB Our total million the the million grew total prior linked the year deposits compared quarterly average due $XX compared

to at XX% XX, Our to March deposit XXXX, declined XX% loan year XX, compared ratio was ago. a at from XX% up December but XXXX

second Our governmental decline XX, the that lower driver were seasonally will governmental in anticipate of higher We deposits March ratio the quarter. at XXXX. deposits

to help future provide deposit growth. However, Prestonsburg, base loan First liquidity acquired with the will the impact associated of for

earnings exceeded capital Our continue to increased declared improve and have ratios as paid. dividend our

XX XXXX. Tier basis to up points compared improved XX March capital equity XXXX points compared to ratio common XX, and December Our XX, X by basis is

to ratio December while XX% Tier risk-based XX.X%, compared XX, to ratio total our capital X Our grew XXXX. increased capital to

to XX December basis to and points XXXX to tangible compared X.XX% to points assets equity tangible basis XX XX, XXXX. ratio XX, compared March improved Our

at value Our per tangible increased December XX, $XX.XX book March XXXX to common compared XX, at $XX.XX share to XXXX. $XX.XX and

which $X.XX of to Earlier first pleased quarterly payout of another per announced quarter our increased dividend quarter. rate are this a diluted our earnings per our We to to announce share, increase share. we has that dividend XX% represents

I monitor turn strong now and Chuck call returning our final capital to dividend for his will back shareholders. continue the a believe our to We performance comments. position and in to

Chuck Sulerzyski

John. you, Thank

the acquisition. as focus opportunity while will the business, market the services within and clients. growing During First continued growth April provide on the our well we The as Prestonsburg XXth to area, quarter first for closed acquisition core for new preparing on additional and products also for

to acquisition cost. the also to fourth one-time approximately traditional be investment to clients. smaller of market will and The We be million during customers acquisition and XXX XXXX. $X.XX the accretive have able in during services during to be cost one-time deposit XXXX, we'll excluding be costs XXXX quarter by over these anticipate banking that insurance of of will commercial the $X.XX majority one-time $X.XX earnings recognized and XXXX, with XXXX. $X the that quarter that approximately offer already recognized within We second to of estimate and those $X.XX loan in acquisition We will of remainder amounts third acquisition

performance to December expansion have look first quarter as in points of we and quarter, a impacts, several non-performing positive While the to our quality of in net XX% XXXX; forward December of in per December XXXX; we tangible to deposit XX, first share, $X.XX XXXX; recent XX% ratio compared criticized metrics value of assets tangible the compared the since decline XX% margin XX, compared first growth to XX% compared basis to with at increase on XXXX; improved of or in reflect second including most ratio in the we total of basis in assets compared quarter quarterly a quarter tangible dividend XX XXXX; increase asset XX the dividend. a an share interest XX, XX X% to loan our loans revenue $X.XX reduction for equity XXXX; of our point to to X% increase from XX, to book to our per December an in and reduction XX% points a basis

but into acquisition-related move Loan growth we thoughts the rest slow will to up XXXX, current regarding the anticipated cost the we pay our the year. the Prestonsburg benefit performance XXXX, through due for to we of and present like of to a of we anticipate momentum quarter As offs, of as First rest pick X% merger. move first X% full-year some would excluding of believe

of in credit our interest margin we increase Fee-based an than believe X.XX% quarter expect to full between X% not net revenue somewhat the to the of We be anticipated through the levels future first consistent be year cost. was year. We or higher expected be for X.XX% growth that XXXX, quarterly will for remainder anticipate is and the cost the indicative between prior X% and year. for full as

expense remaining and in non-interest be $XX.X expect $XX.X quarters of million. We the to XXXX million between

between is Our and efficiency for XXXX target XX% XX%. ratio

leverage anticipate We generate we expect rate full to XX% tax our for to XX.X% positive operating effective for and between year XXXX. and the be

our the of will and welcoming growing focus First be business, already Prestonsburg. integrating our clients quarter, on For while profitable and associates the second

Chief Officer. session and facilitator. bring I call is to questions. Sulerzyski the hands will joining commentary Chuck This Once our of and is back and strong return results call our determined dependable again, this reliable Q&A the the for the to are We providing shareholders, concludes for to call open investments. will our on Financial we Rogers, a while now turn John me our

Operator

of Scott go comes from question [Operator Please Sandler our ahead. Instructions] O'Neill. And Siefers first

Jeanie Dwinell

This is on actually Scott. Jeanie for

XX% takes are but improvement, So quarter typically sequential saw guys up, income. fee puts this less in you're you you the and them I on see can you so. discuss as

see not year? pleased the do you how the were trajecting rest what you Thanks. So, so guys with? for things And with of or pleased

Chuck Sulerzyski

the but were So with - during we some I decently quarter, I that pleased thought fee think, would expect occur impacts there. there are we income seasonal

the best as in has we income investment in the throughout would has fees It would the as the same little that year, little continues we I banking the if first through bit bit conditions be in fourth course there quarter, QX. late that to quarter. at so quarters from swap the not to expect year. long into going to we rest expect and would momentum We'd of of the go market the the market So number of quarter, in up it QX back a mortgage came of during Commercial kind trust the go pick loan also was well. as say recover rest level, a expect the first fourth as hurt the we the decently of as the quarters future quarter. higher as by

quarter changes well to and dramatic, remaining as overly light as we some our we to some fee this go we there implemented we quarters also expect of on deposit schedules, forward but SBA move then We throughout improve would were slight And also well. expect nothing XXXX. as as income would benefit the we very that

Operator

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

Kevin Reevey

kind So, your real diligent as Could in is being you us color, little commercial business? what far more of of comments Chuck, mentioned thinking underwriting more as give internally this your about earlier that estate the you you a were lending.

Chuck Sulerzyski

shifting mean, prime we a have past our commercial developers. I real over to the estate really years many Yes. been

apartments cautious. to markets, to we've lessen deals, the sponsors So, sheets. some been very as the strong of just with balance you of late deals we see we get in We'll for kind as really cycle, do to do begin in to demand want continue

Kevin Reevey

the on income back then And side. fee

- you that was deposit versus behavioral? are of seasonal line service that's How seasonal Your mobile they're charges, of cover, any item. to mentioned of making seeing impacted banking, I customers the service information access we that giving banks much I that via smart has know that? charges. Is which some other negatively they decisions that know a

Chuck Sulerzyski

deposits managing certainly intelligently. we customers see more Well, their

in historically. see other their Bill yes, to overdrafts and have much show using overdraft customers we pressure on we than fee consumer they able managing some to continue So, fees. more other - carefully balances tools using see definitely and been Pay, But, fees online offset

John Rogers

it overdrafts. would is most in drop the of seasonal. say I Most Kevin, occurs of

in first decline much correct overdrafts think spending see Chuck the that There's in to it decline in in greater the overdrafts. was say would likely less consumer to But smaller first 'XX, less that a overdrafts. is is so slowing, is in quarter, have quarter. 'XX, continued probably I I we've 'XX it the I in we seeing online that as seeing but rate, points managing think of able made a their slowed and grow were on at is are decent better would having manage balances definitely that hope we're point something some access, - at customers being themselves to them seeing well.

Kevin Reevey

more. And then one

was mentioned what 'XX. is? that dollar of loan commercial quarter You have first Do your pipeline from happen the you up number to that XX%

Chuck Sulerzyski

last said $XX amount Actually, and the over compared quarter million. pipeline what of increases in we number was $XX the low was first of the time to - that low was the compared in the - million is the to comparable up XX% the year

Operator

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

Michael Perito

I on C&I specifically. on wanted to the side start the loan growth

around. you like really of six quarters some productivity there, there here guys more us expect parts straight of Can where portfolio as to had seems it moving guys or other bit about because it continue. you color had give have seven have success you guys the some solid You little a

more So a provide could little detail. you just if bit curious

Chuck Sulerzyski

large national that some you Yes, very look million, We with the $X the the provide against level are said receive and in higher excellent to here. to tend consistently of large compete an banks we've consistent million, experience million regional And of a them and a they it's able service. players what do we advantage at of past. couple $XX $XX million, $XX and customer, not take borrowing

what they for tend they're that best are competitors in Ohio their All that feel get to said. they West But they're not service great. their we that they're And when of and Kentucky, the those customers are Virginia, want. than at larger who best, getting at people I

also were into then have out retirement plan our do a we through the relationship and products insurance with to occasions able round client or through regularity where relationship. We get

continue. expect of work We've of real and do will the it second the those payoffs us to permanent a run good things that had the our and So got some We strong. years are for to through year we're to markets. as the work we for half optimistic way just be loan goes estate that many growth

Michael Perito

that rate more conservative assumptions, that are you guys just rate of assumptions had that stronger gives that quarter mean, it? gotten to level in with the and margin. at guys have I of to you it assuming thought And for able mean, conferencing some stagnant that - a or I I further margin you us outlook. guidance. - go Fed that two, you guys is I assuming a back kept quarter outlook is were then just guys those hike the And are maybe maintaining you we guys know to you you the transitioning the X.XX% on give one, you going simply first fund be update X.XX%. the can If assuming so, to - maintain

Chuck Sulerzyski

Yes.

anticipating markets. this market carried in anticipated, - that mentioned stronger as in we deposit promotional the then that's we anything, I We're October back - of as initially this think would slowed guidance - down we our we competitiveness much and I've that deposit of call has think I not the we of in January. the than cost. quarter. have kind gave through rate some, think back The seeing ended really through we're increases advertising much watching year I kind but the pricing, we were it deposit of not

helped we've is issue some. job in side that but funds us governmental And the done good deposit of we perhaps costs see perhaps has a with so really So raising or only that's calm retail The deposits, news. could areas, commercial down on some as good well. seemed to

would taking course, at, on X.XX% think number. I some kind think that should we're upon curve. on are compared that - be treasury we're of to A of I has been where the lot confident that, the and seen that to depend all we seeing LIBOR the X.XX% yield movements us together - So that rate we and of other

- that's that in So there, it be we that so if but haven't that would helpful, that's far. so be not hangs If doesn't, seen good.

Michael Perito

so seems transition could your actually mean, I anything, below that have high I step of think little pretty I Chuck, - XX% kind right? last as Capital deposit question about growth this should have a whole positive, looks levels to And I of Company are my as rebound. of as as liquidity. credit low, quarter, mean, here. metrics too plenty a positioning loan a serves here. you it you mean, probably like down it

that's little can with capital some word, I'm - to about bad push leverage is level happen the think lever curious supporting not Peoples tell curious and worse little but Company is anything the really level near and the is we're higher capital Do could discuss in forward seeing here, something returns positioned just you room that. you this But kind we try side? get bit that not little today the XX as is us? move if of us that appropriate As the bit. to XX even maybe moving on going liquidity think on a of we potentially right get and things forward trying here. as still to think there's the dynamic over you bit a that is the to obviously, down to do next you feel to economic aggressive the Or future, I'm market of though ground months that how

Chuck Sulerzyski

of like I the it lot like think in credit off, quarter. like we second it we'll I I think it at lot end end portfolio. first a the what's the will a the I going mean, where better I I better and at a year. lot like the of like we are. Yes. And on

deals So slowdown in the I will tenure good. dividends, the But I the in the good obviously, like doing what activity probably trends advantage with with we're the bank there, I real a we eight smoothest there that I it. market. there's feel and think just to we're we've think was Prestonsburg are say what that did acquisition take in in my poised done about of the

overtime, bit Can down too feel So rather it but too than we widow real perhaps, we I'd capital. strong. have capital little much a little

think below you able rather think loan I XXX%. a be see be than think I to us see XX% a will that's deposit at to with stay XX% and you - - XX% will or ratio I

I there of news. is good So think a lot

is there fee-based income both insurance a few and some that business businesses, grow the investment the to And year. those business we is do the think acquisitions during I to percentage think that opportunities of also good and the look tuck-in we'll organically.

good pretty is now. at life right So PEBO

Operator

Raymond ahead. Our Daniel of Please from question comes next Cardenas James. go

Daniel Cardenas

questions Just and a classified on criticized your loans. couple

what's number average see the and million, portfolio $XX drive there's in So, there? this of could the of come that further looking of kind other loan $XX to Just size down. million, criticized your larger if inside off of about any credits

Chuck Sulerzyski

It's than $X million. Less pretty granular.

Daniel Cardenas

as And the loans, types to $X cetera? million then increase, color maybe the of on the any classified loans, industries, et

Chuck Sulerzyski

few next Bunch over way and of from dogs, around cats Nothing to the quarters. bounced the I go be other odds quarter-to-quarter. It's significant, really that's and see ends. won't surprised number a

Daniel Cardenas

term there, So it near at causing concern like in side? least doesn't anything quality the the out on any you sound credit horizon there's

Chuck Sulerzyski

I baby. sleep like a

Daniel Cardenas

maybe trying number just core a to to on the margin, get And the for then margin.

reported out and paydowns X.XX%, little on a helped the any have could that bit? impact You margin quarter in the your payoffs

Chuck Sulerzyski

Not that Dan. recall, I can

I had a core performing accretion, was clean benefit, but I mean margin I had were think perspective. we is from bit nothing paydown quarter performing well. is think pretty It core the well. was little perspective. no think I there There pretty a no the OTTI a - unusual more that from - we

Daniel Cardenas

ratio. question that do prioritize Prestonsburg tangible with acquisition, equity just for level how capital you know you going but me, the I And common your forward? guys? kind And optimal First down what's adjust then, of it'll using the probably last for on

Chuck Sulerzyski

X.X Well, will the to I of probably think, X range. probably more be optimal

year I out, say, years careful. strong some downturn, out, The yield two think point I heads the you and a and think everything others at a would at dividend. the be don't be cycle a demonstrated - whether point this you curve we've and could talking would that's think try tell I in to yeah, there

we capital in management overly cycle. also to though in get think time aggressive want at I don't the any this

going that perspective periods could would why we an if on we future of a that that. happen So base that's cautious capital in I and have economic to perhaps be wouldn't take of And hubris were be to growth would if think we occur. downturn, very advantage strong it from

kind over to trying next be outlook the we're economic here like think I of So year the what perspective. from an to cognizant of looks three years

Daniel Cardenas

And then CECL? can provide I guess, update one last question, just you in terms regarding of any

Chuck Sulerzyski

different variety track, good of bank. a We're project across in areas we got a the from on team

we October. it us, our helping We third results our And that to we have some looking give our outside be have over with sense in we'll auditors I how of folks see some probably quarter you think shoulders. able

Operator

closing [Operator Instructions] further remarks. any there are do Sir, At this questions. you no have time

Chuck Sulerzyski

and section. our for this for Annual to Thursday, like Shareholder also Ohio. under peoplesbancorp.com good thank our a a Marietta, everyone us Meeting have to everyone a Please be on Relations moment take at will of I'd I day. on participating. webcast released Yes. at that like XXth, call your remember invite earnings to April archived headquarters Thanks Investor to join our in time and would

Operator

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

now may disconnect. You

Peoples Bancorp (PEBO) 23 Apr 192019 Q1 Earnings call transcript