PEBO - Earnings call transcript Q4 2021

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Operator

Good morning, and welcome to the Peoples Bancorp Inc. Conference Call. My name is Ailey, and I will be your conference facilitator. Today's call will cover a discussion of the results of operations for the quarterly period and fiscal year ended December 31, 2021. [Operator Instructions]. being also is call recorded. This

other to Commission's If are current of Peoples' on future this historical bounds call events. please Peoples' fact, expectations. call or at These forward-looking Management statements on statements recording, Please you will financial Exchange be risks management's or Securities Peoples' of uncertainties not involve the projections number their this The and statements, of object which forward-looking time. are a reasonable in advised these operations. disconnect in and detailed commentary in and during the regarding call, statements based the filings. believes and knowledge that business performance assumptions statements made forward-looking within based are contain future are the this

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

Charles Sulerzyski

everyone. you joining morning, Thank you, for Good us. Ailey. Thank

earnings which fourth Financial quarter, We excited the Bancorp, to quarter report our of are full for Premier Inc. acquisition. impact the included

positives, many million. record and XX% year for the the the grew interest to compared was $XX.X quarter Net compared quarter income to at linked up have We for including XX% earnings full XXXX.

XX% the compared income XXXX XXXX. XX% full to the Total fee-based and to Our increased compared year and to compared improved full quarter fourth XX% compared X% the year of XXXX. the quarter of XX% of to linked revenue the linked quarter, to compared

of to is considerable declined the businesses. high, XX acquired adjusted ever. points basis quarter, total stood for and efficiency quarter. loan our linked of funds our our of portfolio, deposits, in an items, growth We $X.XX along both for had comprised fourth the the Peoples. with XX% cost of loans diluted core compared which share deposits and we at our quarter and and reported at we fourth net per To our December deposits the PPP diluted target summarize financial per XX, of earnings noninterest-bearing $X.XX year-end XX% originated $XX.X SBA deposits of met forgiveness million of full by The for declined Our ratio, XX.X% non-core our performance, share or Demand to our total income reported best year. for all-time XXXX,

the due by and which improve at metrics. we quarter were $XX an loans an in sold we per credit will The going from credit our hospitality Premier million approximately annually, around $X.XX million reductions the other of opportunity and loans by to impacted sold our more opportunity concentration favorable to but shareholders positively acquired within category, revenue reduce were are areas. diluted we This forward. to loan of considered criticized $XX segment in for of the the results loans, $XX as of $XX million concentration upgrades gain Of to sale share $X sale sold, reinvest Our the see par. fourth represented million million that fell

have past below loans deck, and of diluted you in several seen X is while fourth in high by $X.XX XXXX. years that our portfolios have this We average very also and EPS a for the criticized costs classified capital Acquisition-related Midwest maintaining credit investor improving our quarter the for move over our As believe quality years. the been for standards, sale ratios. $X.XX reduced our

negatively EPS year. $X.XX by the the and for expenses diluted COVID-XX-related impacted Our $X.XX for fourth quarter

processing with expenses the had associated core a banking $X.XX the of on per we diluted contracts, in a for quarter. our renegotiation digital benefit of revision and fourth Additionally, the share resulted which

released we reducing for during provision losses. by the $X credit quarter, credit the quarter, for for allowance, positively of EPS impacted losses, was provision sold driven in in which fourth the by we million For nearly million This $X.XX. million loans $XX $X related released around diluted we which

improved reducing economic quarter, of provision Our forecast the losses. to the credit relative for linked view further the

the be work economic loan model take loans, year-end, to we declined continue the a our we our for credit allowance of our to indicators. for assumptions to Compared comprised the balances quarter, At to reductions. $XX We and believe the million. X.X% third conservative end are losses what and reflect there within opportunities total approach of believe CECL most future may reasonable

in completed and the mentioned payments during quarter. balances I fourth also sale million $XX we the we of earlier, about $XX million PPP loan forgiveness received As of

originated of loan over is year. $X.X best the sale X% Commercial and had more was previous PPP $XX balances, loans nearly annualized, Excluding XX, million than or our which $XXX September million XXXX, compared over to loan We during growth billion XXXX.

annualized, time, the with $XX or PPP $XX in At million business annualized, increase $XX million or our growth leasing or the and loans excluding Commercial added and million annualized. Our sold. XX% our loans grew loans balances Industrial led XX% construction and XX% same

remained rates As below we historic utilization levels call, have noted the the of have beginning credit in since line previous the pandemic. earnings of

commitments our to XX% we expanded on During and credit the by utilization the fourth to loan lines Compared PPP which from balances balances. September PPP of year-end. At million XXXX, lease year-end, December X%, rate excluding of Premier. included at our million million $XX $XX and $XX XX% at Commercial Commercial our the at Premier, acquired from loans end our credit stood of grew lines quarter, grew XX,

by far over forgiveness, PPP forgiveness originated XX% As PPP we as loans are of all Peoples.

end. the growth metrics of improved in an While a our quarter, mid- be annualized it's early compared for expect to on the quarter From to the quarter XXXX we of in high-single our perspective, first to digits the many basis. loan quality credit first linked

improved basis basis to compared quarter, linked fourth X points for quarter. the Our and XX the totaled quarterly rate annualized net points charge-off

Our balances linked or X% portion nonperforming criticized decreased. compared our classified XX. loan assets at loan to declined the of September the portfolio current and XX.X% at The also while XX.X% stood to $X million compared quarter,

of the that For increase charge-off net lowering XX along driven points net rate year. charge-off leasing new This with points, the was increase to XXXX, year recoveries compared charge-offs was basis X full net rate basis for the our recognized XXXX, by portfolio from an for XXXX. during

declined over the loans were XX% while compared assets classified criticized the $X XX% respectively, to end, nonperforming down and linked and quarter period. Our million same our

these the As quarter. loan metrics improved sale fourth I mentioned earlier, during the

X% preferred top terms X(a) West top for XXXX. XX% Virginia, the are ending that in SBA SBA XX% year Ohio, the lender, approved of and we a proud report nationally in to fiscal September we As in top XX, dollars ranked in

referral have our We business strong also business footprint and are Premier to to new grow successfully added our continue the and activity. working in teams have

We available each forward. have had success the management, introducing treasury not areas indirect going acquisition, Premier previously to clients. Since in of insurance, these other our closed we businesses in and have lending of growth were expect investment, business that and opportunities each

clients. of As both we the are vaccinated. associates At to are we years, the in past over done to associates proactive be our this time, XX% fully trying for have our exposure COVID X reducing and

As these list an American banks nationwide for size banks the work were the of the recognized or employer, which our larger. included we to XXXX, on of XX and as only only were were in best banks XX of Banker one by

a We make to priority and has associates our accomplishments. high to various our been key culture continue positive a our

previously, to during the done the quarter Vice level of have we occasion up our President shares fourth to we Assistant who associates, XXXX. granted were on As

donated since the the comes at them provide we and cost, value success to an total banks beginning In align stake, organization. company associates their with to the communities, of and to our While effort collectively $XXX,XXX shareholders of have food the local to during a this local associates reward opportunity interest both the make a $XXX,XXX the and ownership to pandemic. our of with of XXXX efforts their our help an

pride deep an Our organization commitment our and communities. their with in care others associates take to of taking communities starts helping as who our

impacted partners, donated I now along wake our our for efforts Kentucky around third-party additional that recent performance. the in nearly to turn by immediate impacted with of details Additionally, to relief with in communities call $XX,XXX tornadoes. the the the months, Katie will and over our associated tornadoes employees foundation, financial

Kathryn Bailey

Thank you, Chuck.

time, our margin For balance net acquisition. balances by driven high XX average income continue the upward the cash the an linked interest basis improved future for balances, balances. deposit by the pressure of million in by and the we margin, as full continue impacted XX see than deposit some we governmental points at net which also seasonal foreseeable compared linked points. the We the Premier be and to was trends increases strong quarter, core will of same quarter, growth on put our negatively the cash interest fourth and will quarter, At impact quarter to were inflated for anticipate $XXX basis our quarter lower XX% reflecting have which noise to was cash

X had to yields, quarter, lease interest net the points. also our third $XXX,XXX declined down lower We margin income, compared basis driving while by lease which reducing accretion

X during points of accretion from interest acquisitions PPP income to quarter, therefore, X on provided basis deferred loans less to and while the linked decline quarter, recognized. lower point interest XX fourth had the net the For we margin, added income net quarter, Compared income income, in we basis amortization costs margin to net an points. and basis as due fees fewer had PPP our forgiven the expense

the to our be Premier net funding fourth XXXX, by and to costs been proactive in we the X the interest linked declined driven throughout quarter. quarter another our to continue XX%, was which managing income compared of portfolio. acquired have which as pandemic, Compared basis points the lease grew We

the grew we points interest net prior XX basis points fourth of compared to cut Our to while the in business quarter year our to margin compared leasing funding The the costs for nearly lower quarter. basis reduced income. XX margin XXXX. added fourth points, the XX basis half, for PPP margin fourth to the which of X and on a quarter basis Again, quarter drag by was points by offset cash was margin XXXX, compared

and full of full XX% For premium income Premier and year with acquisitions the year own growth. leasing interest completed of the XXXX, finance impact acquisition the our net grew as the we core coupled

Our impact but the points for basis funding points, XXXX. were XXXX our net interest points We compared cash basis by compared XX to margin points expanded muted which down costs, reduced actively which X balances, XX managed basis for our XX XXXX. high basis positive was by margin to

during PPP year, points basis added points income margin basis points compared basis the while to XXXX. the added XXXX, leasing for For to portfolio X XX XX

to improved For the experienced When ratio ratio acquisition-related items, non-core to to adjusted for as for XX.X% expenses efficiency lower declined quarter. compared adjusted quarter. the we our linked compared significantly the efficiency linked quarter, our XX.X% reported much

we of We and our the associated see to recent cost expect as metric reap to acquisitions decline this savings. continue benefits

charges, which We fee-based on our linked as our the continue revenue fee-based or from by the -- were by diversified to XX%. bolstered benefit income was focus electronic of businesses, of sources banking account driven and Compared service deposit grew higher our million increased $X.X acquisition. quarter, income revenue. Premier we to This both

deposit service of to We which deposit by quarter periods XXXX, and electronic seen service have charges Fee-based compared the recent income impacted income the our XX% also positively banking was growth excluding accounts. account in some in charges. fourth grew account acquired

from benefited insurance and and and income also divisions, were respectively. which our XX% We X%, investment higher from trust up

income the commercial income income partially which fee-based fee For interest the environment grew and insurance increase. in These electronic demand. and much of were banking, were mortgage drove and full the by of our reductions as rate X%, offset higher swap income, by trust year, banking both impacted investment client and

and due noninterest Total acquisition. expenses. increased for run the due category mostly our the same to recognition to our to the processing also compared acquisitions higher on contract nearly million linked COVID-XX-related and last and Premier quarter for -- expenses Moving the quarter. fees banking XX% up was third quarter. of expenses compared was quarter, acquisition-related due to down rate and recent expense to due our At with associated contracts. to was core core expense recognized time, Professional Acquisition of the expenses $X.X the the digital negotiations our quarter fourth to year prior in Total XX% expense associated ongoing declined our noninterest costs. the every our totaled

costs from $XXX Premier linked the year, cash third grew from by grew total the that and end, million our ratio quarter. full quarter. noninterest sold compared over with million grew expenses to expense $X.X in From securities driven the investments we recent grew our sheet our total the we to linked of and as late acquisitions. assets balance of the was and December For acquisition-related XX% expenses and reinvested XX% million, COVID-XX-related to was XX, investments -- acquired associated ongoing $XX.X compared quarter of our At a coupled the perspective,

grew Our which of $XX offset in deposits due deposits higher by governmental quarter an seasonally to CDs. lower $XX was were total noninterest-bearing last by deposits grew increase along influx with reductions that million, The partially which million. of was our retail most

December our deposits, compared acquired end X% quarter and XX% up growth to Excluding XX, linked core from was deposit was XXXX. annualized the

ratios During impacted and to the capital by income. higher our net fourth our were quarter, positively continued improve

Tier XX.X%. Our common X equity was ratio

XX.X%. ratio X capital XX% was Tier and risk-based Our our was total ratio

last inflated to capital acquired assets. due full X.X%, As issued a declined reflected the average we to our to was while leverage ratio of it Premier impact acquire of assets quarter had month shares only as anticipated, our half the

X.X% points continues XX ratio impacted and loans, Our at negatively the tangible year-end. to equity XX, impacted December to basis be XXXX, by remaining this tangible to improved assets which ratio at PPP by

compared grew $X.XX period. while improved same now to per over his final to turn quarter for or will I back value comments. linked book X% or annualized book the share annualized, $X.XX tangible Our X% our end, per share value call the the Chuck

Charles Sulerzyski

internally doing for I now my feedback time at Katie. clients, any am I Peoples'. servicing care nearly XX associates. on of our you, providing our years both top-notch Thank and Based our communities about more business taking have during externally, with are our well than workplace been and optimistic a we

throughout in comes history make the contribution helping only XXXX from meaningful performance, and also our Our We financial making but in high-yielding and associates biggest experienced success not completed from communities. during to a we our our leasing brought impact acquisition our business. a organization the company's our and

work are our together doing on teams to our new we We place new seeing our who clients our from throughout as We've benefiting services acquisitions experienced best expand already success well focus what's in clients. footprint. for to and

to also only as active note, a are expenses I to teams lines fee-based include our during not expect referrals higher our between happy business, stock-based for pipeline creating share merit banking market view like recognize that accounts, are income. are but Our would grow, that taxes our which to customarily quarter, health employer also the first to clients certain an of income, of higher to expense first to contributions increases. annual payroll typically savings quarter and expenses due employees, few generally compensation we

first which insurance year, during also will benefit the our income. income contingent recognized We quarter fee-based of the annually

XXXX, items, last early we to and for performance guidance our as far like which refresh. excluded quarter, non-core As gave would some I

becomes expect We We by the costs the X% a pandemic. PPP in anticipate less impacted be to as between and growth loan excluding stabilization X% credit economy loans.

a to return basis will XX and be more charge-off percent rates also a points future including level of balances. historic XX We periods gross believe between will as to leases in annual our

X.X% full include expect margin not We year rate the any of which XXXX hikes. anticipated of interest net for between X.X%, and does

the We quarterly with We this QX $XX expect expect ratio up to in to the exception income typically range. is the efficiency XXs. margin compared and which $XX to noninterest higher, anticipate high increase of year, be that we XX% be XXXX. expense first expected between quarter, growth throughout is in million will that XX% the below our would with be between million, total coming and and Fee-based

collaboration we the for as benefits business net interest interest XXXX, performance for of far look our rise income of positively to plan opportunity our As our for between the reap and impact lines margin. and which to rates will

continue for As questions. Financial our call the we facilitator. concludes Bailey, always, acquisitions and bank we we finance hands now fee-based Katie businesses our the will our most I acquisition. back call Q&A the absorb and commentary recent continue open is joining the Chief will Once to me Chuck actively of opportunities again, of turn to seek for our session and this This for specialty Officer. is into Sulerzyski while

Operator

[Operator Instructions].

question with first Our Piper Sandler. Siefers Scott comes today from

Robert Siefers

start hoping the could nuance on or quarter's betas, margin et regarding What deployment, the X.XX% thinking Katie liquidity we up year from your to progresses. maybe Chuck for was margin, to fourth X.XX% some cetera? I either the advances just excess that you are view, as deposit X.XX% the range how the on of

Kathryn Bailey

Sure.

accounting So basis with some third I North that quarter accretion Star the margin I'll from as which to Leasing, X lower we North in And some was correction think cleanup income, quarter. It fourth we start to as commented it the or had points hit about relates finalize here. the Star.

get think we'll that of So back. some I

a on under closer versus the year-to-date printed XX% yields little the the to it's portfolio that see basis, quarter, fourth can You XX%. we a in

in down the impact on basis governmental of you to quarter on deployment, our the XX we deposits year, the fourth for we in yield again, cash would growth significant that the XX% we portfolio. then did, those think had noninterest-bearing to for quarter-to-quarter but excess noted I We can declined, XX% where the And next closer quoted liquidity kind seasonal point yearly cash quarter and expect reasons that cash. of deposits. go anticipated something saw last

some And and of then cash some the portfolio, that potentially loan does but help. investment asset -- assuming So will growth. in mix the talked loan hopefully in growth get a as quarter, shift. little the deployed in we last That

loan the some with leasing investment both other in So businesses fund portfolio. and of we'll the the growth,

range of sitting strive that we assets percentage we've in now. As XX% investments. quoted do to that before to our are get get like We'd XX%. We're of the right to at XX% to closer

are items. those the So big

Robert Siefers

great. That's Yes.

other cleanup Additionally, maybe a of questions. sort of margin-related couple

of of this for we were rule of how from I XX purchase basis you're points NII where maybe thinking still hike to margin benefit And round thinking? accounting You you good year. think quarter, the think last have regarding accretion thumb sort Fed. XX would that the one of Is about point is or final the basis in each then XX

Kathryn Bailey

Sure.

that I'll million impact XX that pretax a So be basis on start with hike. would quantify basis, basis. an point about We annual the on $X.X

be March forecast first So we again, the is will time that. the see

wouldn't we quoted. that -- I of got get we've portion large then And just sorry. the year but So $X.X a benefit 'XX, full in million,

as accretion by that then that the as X added quarter, leasing accounting the purchase the far a Star And bit little Okay. again, basis I North noted. fourth points reduced adjustment was in

as fair XX estimate is basis So point think I a the well. that for range line

Operator

from Tim comes question next KBW. with Switzer Our

Timothy Switzer

earning the across securities If of talking asset floating portfolio about. rate I the breakdown impacts among NII kind and were is one we NIM more could between kind loan in fixed your of add rate book? and What that on the

Kathryn Bailey

investment On it's largely about fixed. on portfolio, it's And the the loan XX-XX. portfolio,

Timothy Switzer

Premier move then to we Great. if could And the Okay. acquisition. on

about if how about talked sounds Can some products. now some provide little talk lines, the about to you it bit? had know it's I some new different to across just offering pretty talk And like XXXX? closed, kind could of quantify revenue you've business opportunities, that good able you're a You anything it how that guys if can but yet, don't maybe you upside

Charles Sulerzyski

lines kind business. go just of of through the couple thoughts a of Well, different

operation, retail they not the On provide equity home did loans.

investment insurance $X.X more over of as They some have in lead the already not plans Those I we've employees will and And they And times million accelerate. terms it. are already. getting in number become the of those comfortable grow sales particular, options, done think with that equity options, we did and completed. think home have will long XXX(k) think closed of I I that have didn't loans.

we'll and did have they we the Commercial, opportunity state McDonald's plus is So capacity of $XX lender footprint. see their finally, to quite they gotten largest not less. the something just And really -- a our That treasury then the just the And on the out have that more larger the already of for those the capability that into more as capabilities, was us, is limit Ohio, more didn't we on, a of which and the -- time floor goes finish are we is our just in capabilities we've and couple Deal simply things business And is good the of health in robust that and management packaged plan, a that. are do line. bit how theirs where much million. do. of kind any

upside So that is us. of gravy for all just

Operator

Our next comes Hovde Rowe with from Bryce question Group.

Bryce Rowe

on the asset XX-Q. the Katie, wanted disclosures you, in of there the up I to Maybe more questions in sensitivity. One around terms NIM follow and for

baked that be increase noted from analysis? of deposit an the assumption do the you You beta impact by have would What what Fed. kind into

Kathryn Bailey

Yes.

it course, I products, it's a varies about Of XX%. by on would average, say, but

Bryce Rowe

obviously, around you That's And see all to Okay. -- great. seasonal time of government flows deposit mix. then the That's time just from with And from deposits. kind helpful.

the same how seasonal from that see your you generally your you of the government offering how And -- your product retain kind to stacks expect level side? pricing up, stacks the kind inflows deposits across of do kind deposit Just of of portfolio? curious up,

Kathryn Bailey

XX. of seasonality. will is ramps then the the in a and March expect be it on high It up, it's point low do kind think the and at December I we again usually in governmental same point side, September

Bryce Rowe

guidance. you've I or driving appreciate little items refresh more That updates income The are line in all XX% driving to bit the on the noninterest the here. -- you or earnings number XX% nice about that? nice Okay. that? fee the What maybe Great. as given we like would forward. Can maybe look income ahead a help that seems increase certainly a a talk what's fees. and And then within one drive that the

Kathryn Bailey

Sure.

some saw -- we significant the So we'll quarter. growth the the growth full next there sizable well, -- fourth acquisition year Premier Premier have in year. for again, in And

that quarters on So increment what to we provide almost X in had full will XXXX.

So that's that some growth is, the both loan fee in income the well. the the can electronic banking for service given we and things line pretty environment. to year I'll as think charge recorded line couple account light this us relates other as item A then of Commercial you swap note was deposit it

that trends recovery look where been year. you higher we we've line some than at item so expect and the And been. we past It's saw can in what this

get business another April. that The have income them in some fee is we'll the from production leasing other see and year-over-year. Again, for expect their just note there back I line we to acquired continues to to increase some growth there. the we would or is There item and some quarter opportunity other that

Charles Sulerzyski

Yes.

that that fee The would investment add 'XX, is XX%. growth thing in over our I business to other had

the It's much to realm So very it ambitious our in is. of XX% than XX% possibility. may sound

Operator

[Operator Instructions].

comes next from Riley Securities. with Steve B. Our question Moss

Stephen Moss

It like driven like of loan the I chunk me side. Commercial to guide X% -- the just growth if the just on a good year. for to going but X% it that's Maybe here, of to apologize sounds missed be on I Chuck,

underneath you if of kind it Just just go through there? the could drivers

Charles Sulerzyski

the during course you're think including I Commercial, it will the the be and business year. of finance on right, the leasing heavily premium the

consumer second half on the the this counting the point side, I think in it up cooks hopeful not that I'm time. in of but year, I'm at

Stephen Moss

at Okay. then here. terms That's just just picture And looking maybe in the bigger of helpful.

that you've couple closed this of Now deals a year.

to curious of year are what there? of hearing your transaction how kind level out thoughts you're chatter -- around what as and this a doing Just

Charles Sulerzyski

you a explicitly transaction, transaction? are -- Well, transaction when say a bank you any or

Stephen Moss

Your of line business.

Charles Sulerzyski

some not see I'm do bank transactions a more Yes. be transactions, I'm to exciting. insurance transaction. do investment to up dying would finance specialty transactions, that us

acquired. of see is that me, said, if deal I institutions surprised be For the got to but a us different remain not deal And optimistic. year, bank digest we'd bank being it say some That is closing I announced this we ongoing this I still a I in it's deal to do level time, like relative year. with but certain points and modest, chatter would -- the wouldn't --

Operator

Our Piper Scott next question is a Siefers follow-up with Sandler. from

Robert Siefers

Just wanted sure directly. circle ask the loan of to sort growth, squaring I'm just make to on

of off is X% words, sale? exclusive reported quarter On And to X% of sales? the X% the loan in absorb million the of Or the to would underlying X%, is the me, loan fourth excuse -- sort the that that base? growth end-of-period X%? does be also other $XX sort or In would than stronger to X%

Charles Sulerzyski

end from Yes. out standpoint. loan sale year loan going already the of balances That of we're -- the and the from balances the that is

Robert Siefers

All Perfect. right.

number. relationship. competitors your sort putting there clean portfolio, the legacy two that that terms sort of around, overall of sticking sort terms thought cetera? sort Premier. are in quality then, how of sort of of et a two So of Maybe just guessing two in feel that's I'm type Premier totally are the a a or legacy about team it's away just you where of of hoping, together, lenders that from there's another credit But some Chuck, was where you the I That's clear free imagine good. you And on I and hired was and of

Charles Sulerzyski

would single-purpose be that filled more cash like at things If like, they the it, put or about estate real had happen. we we things deal, money a than on obviously, values doesn't specialty a people we're you we we up. appraisal flows when the that look that we always lot stick, than the estate it not you I in and particularly than we that inclined Yes. real door hotels don't of out may concentration greater of portfolio mean, to. And like about hope but necessarily and do a the they that probably --

our probably that not them and who assets, doing, comfortable portfolio million is better and $XXmillion stuff originating we're criticized that and business to pretty which So that's day. $XX for it's unload do and of anytime us you good grateful so are that a can classified mean, at comfortable took the better they associates par. and for at par, I that's that of

as are very in So sale. about about And think We far that opportunity I can good good quality portfolio. of do. who good adding about is loan very the very the good we think market feel front time. feel see credit earlier feel reserve the as we're colleagues that, the decrease about with X.X% that you'll feel I the comments, associates very got the us that And we We what indicated they and high. in we over And against as outlook, us. and

So all we we're feel and excited credit very good went of in about really the the it. improvements we about metrics that through

Operator

from Boenning Scattergood. comes and question next Cardenas Our with Daniel

Daniel Cardenas

going quick one follow-up sales. of loan additional Or and done? on should a expect kind the Is kind that forward? just So sales a of we

Charles Sulerzyski

to I par, criticized likely? in wants done again. $XX Do $XX That's I is been have at it which classified don't. that think first million -- years million, XX sale buy somebody we've been I here. the that the I of the do loan that's and has I if

never probably never. So we're but done, I I'll say think

Daniel Cardenas

to in that term to more there's try see of loans I perhaps then growth portfolio? if the near of going And that guess, to avoid over loan All terms you your looking any as categories specifically, Excellent. right. outlook, grow you're

Charles Sulerzyski

our Well, I of heavily what on disciplines We're think doing. C&I. to focused been we've very stick we'll

markets. in like We stuff the multifamily franchise we've ancillary some business, generally plan, that that The we is stuff floor of McDonald's that stuff good CRE added the like we're Our like. comfortable. dealer

one think of the And I distinguishes we've that obviously, of the the that finance portfolio the is our things asset leasing. bolted on diversification and classes. premium

and just think we're and to stay I going bigger lanes the we're to try that in in So better. get

Daniel Cardenas

Good. as sequential your then a on forward? capital look basis. at levels, about Good. capital deployment are increase your And Okay. look we quarter I nice thoughts What as

Charles Sulerzyski

of and kind over buyback continue what terms We focus an we'll the is. the per at acquisitions buybacks, of improving we're look shares happy we And the on and as tangible the to see acquisition dividend, remain earn-back the Well, we all like on at we're time. buying support not back to -- capital obviously current the in the comfortable price, and really and book currently. at increasing. value levels looking And we of focused dividend share

Daniel Cardenas

in Okay. a left program? current And reminder, just buyback your what's

Kathryn Bailey

and think out not it's plan million. don't a under used new last we last January year, $XX have think of -- about I in I it. we anything with -- went

Daniel Cardenas

answered. Okay. other been questions Great. have and My asked

Operator

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

Charles Sulerzyski

day. great and Please to section. joining want this morning. and webcast that peoplesbancorp.com for be root I for Please the wish a at of you thank health, this call release have everyone earnings Investor our for remember call Relations Yes. good archived your to remember this Thank our time. under everyone [indiscernible] weekend. the I will

Operator

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

now may disconnect. You

Peoples Bancorp (PEBO) 25 Jan 222021 Q4 Earnings call transcript