- Earnings call transcript Q3 2022

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Operator

Good morning, and welcome to the Peoples Bancorp Inc's Conference Call. My name is Matt, and I will be your conference facilitator. Today's call will cover a discussion of results of operations for the quarterly and nine month periods ended September 30, 2022. [Operator Instructions] This call is 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 and regarding be commentary call in contain or Please People's future current are on statements management's These based expectations. involve are in statements fact statements risks Peoples in this uncertainties which Securities Commission a The not and of number Exchange call, are historical forward-looking detailed the and and filings. business bounds during on reasonable Management based of knowledge believes are their that this forward-looking call and of Peoples statements within the operations. made assumptions

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

Chuck Sulerzyski

$X.X Kentucky. anticipate this today. morning, Earlier management into XXXX. Thank merger you, shareholders, like partnership Taylor similar strategically Limestone's all and our Inc. closing counties has in believe during as operates expansion will on highlight the in issued on Kentucky. both call Limestone into announced excited merger institutions. the and we merger benefit of discipline would of joining We details later results second Matt. you our we Limestone I about in XX to this will branches billion of assets culture this important this clients us. XX quarter go markets the the morning led a and our in appreciate employees and has We by and morning. Bancorp very Good I team the credit call. more merger We're John

our With reported quarter, totaled increase the million, share we an our in third were per earnings $X.XX. $XX net while income, diluted which

positive reported quarter. to our improved improved than leverage, generated grew Most the XX.X% for faster our linked efficiency operating for quarter. anticipated, earnings we We compared the revenues notably, meaning ratio compared expenses the to XX.X% quarter. to As third linked

percent Our on ever to equity stockholders highest average pre-provision while which X.XX%. a had We of revenue net points compared increased XX grew X.XX% basis XX.XX%, to linked average return our pre-tax at basis points average quarter. assets, stood quarterly on the assets as X to return

up Our quarter with linked at X% net interest was net X.XX%. interest income $XX.X over margin to million the

the basis cost, ever quarter. our and highest reported. which points XX We our and basis was quarterly quarter. was income was up only grew to deposit up linked control also revenue points continue to X Fee-based linked over This the compared X%

and classified compared We in loans. both our also quality with had linked credit improvements the end criticized quarter in reduction to

by grew to losses credit the end. linked for X% allowance compared quarter Our

the we for diluted have totaling which $X.XX added quarter. the million, of $X.X Year-to-date, to in loan. the EPS by increase the release quarter, losses analyzed in forecasts, losses compared driven For by a individually quarter which for linked were to diluted of we million, improvements offset in Most $X.X reserves partially third a recorded EPS. of recorded allowance by was for our macroeconomic provision has reduced credit $X.XX deterioration credit for provision which

X.XX% to and total X.XX% of X.XX% loans quarter losses allowance XX, Our XXXX compared June end at at credit at for comprised year-end.

to our Moving loan on portfolio.

Excluding by up $XX which indirect compared linked our was million loans, annualized XX% growth $XX end. to or million PPP X% loan the our increased consumer balances quarter quarter the Leading annualized. or loans, over this were

million balances and during the increased to is by forgiveness $XX due of we decline commercial an industrial balances quarter. PPP loan which $XX Our net million, see in

of remaining Our end loans PPP million the at September. balances of $X stood at

forward. $XX million. impact as real had for should $XX time, other we construction our these up our for same offset partially the strong million, So going growth We over little originations estate $XX while loan had loans declined million the our portfolio levels At Premium were new loans finance and loan grew quarter. have loans production anticipated. commercial

our loan maintain linked biggest portfolio to criticized a classified remain continue improvement credit our have standards. efforts quarter loans the our both end. of was metrics on We the some to perspective, high and to The focus reflects in compared quality end. to strong quarter From credit reductions quality linked to compared of we and credit improved reduction

commercial down of pay was $XX Compared acquired. classified the or quarter million criticized the in $XX the This net a $XX upgrades, in were At criticized loans mostly $XX three by Our to time, million mention and nearly XX, half or or or relationships. and $XX million $XX million was of of and to and larger and XX% classified of million XX% million upgrade September X% same XXXX, linked downgrades, substandard our loans was declined loans were our in respectively. million from to downs due hospitality that relationship two industrial and compared commercial which $X were due end. million decreased $XX special relationships XX% to payoff to which the driven

in were past due end non-accrual in $X improvement declined considered the loans loans XX.X%, at which from reductions loans also quarter XX.X% for The end portion nearly increases nonperforming days an our accruing. of portfolio loan Our to million, the linked XX-plus and quarter which by and stood of year-end. linked was our offset compared to current due partially

charge-off quarterly year the months and XX relatively are and net basis the prior XXXX, was to third Our linked quarter points quarter, charge-off XXXX. nine nine months of first rates annualized first rate quarter net for Compared our of consistent.

net past the quarterly years, For our six XX basis averaged rate points. charge-off has

loan close our for to eye credit the compromise We details for rates turn periods, and I will now and will are We quality confident from perspective Katie the for our disciplined call credit of performance. financial conditions. but on high not keeping a impact credit we're in over a economic interest future additional remain growth. standards about

Katie Bailey

Chuck. Thank you,

linked For the X.XX%, quarter grew our margin third X% expanded to to and the compared income quarter, XX our the net up quarter. basis points interest net interest linked from

positively interest yields up yields rate were environment impacted from continue basis be grew the basis by and loan points. by At to the the points our XX quarter. time, XX investment linked higher Our same

we XX the one rose recent to to declined for points. quarter, to nominal Accretion $X.X which added and net continued funding core interest quarter, in XX% we Compared $X.X acquisitions, and margin. net linked to income linked control acquisitions basis interest improvement be which increases costs interest two net margin responding periods PPP point by and million, from points driven our basis basis the for interest basis were margin points in to expense controlled expanded were quarter, our deposit grew only yields Loan income, growth basis million deposit five the points by and for expanded prior respectively our while compared The quarter. basis to has net adding basis to the also XX down to income year and amortization points. compared interest been balances. costs, net rates. XX costs, flat, deposit points competition of market Our and XX relatively to continue

borrowing the increased due acquired market costs Our in rise coupled the Vantage with borrowings were rates. recent interest to

margin XXXX. was Premier through of nine Our the market the driven XX respectively Vantage the points majority compared interest of increase XXXX. and grew basis with income and and higher coupled during net The by to rates first XX% mergers, months XXXX, interest

ratio improved quarter, XXXX. linked the a year improvement improved When year-to-date XX.X%, to linked expenses, sizable the the efficiency prior improved our Our XX.X% the ratio for reported compared efficiency was third XXXX. XX.X% from XX.X% adjusted year XX.X% XX% for our efficiency efficiency to to ratio the a basis, to adjusted quarter quarter. Year-to-date, and prior for for for to XX.X% non-core for XX.X% compared On over and XX.X% quarter. quarter the for XX.X% ratio in

quarter, our the which focus non-interest pleased from have the leasing were our added. due in trust managed investment lower electronic the to mostly of time, trust customer asset to has income are how this X%. was which activity. was and grew year. lower accounts were life The and which linked due to decrease Deposit able and $X.X additional At We efficiency of be ratio, our offset to values million, service been with to income not able up investment, very our banking income we fee-based same have Compared by the grew trust income the insurance main businesses. quickly for because charges us and account declined. income we primarily bank-owned been a market Other new fee-based investment by

the banking customer and and service during driven within year was leasing the onetime in purchased portion the death these and growth of was quarter, owned quarter. fee-based and swap were acquired Premier about increase of which bank offset items bank-owned insurance to account as fee-based a fee of half Compared income XX%, result we up life also non-interest activity charges lower Other recent XX%. up a by significant last was linked additional periods. account while was XX%. quarter, income the increased insurance, Our coupled increased our with by large the income benefit grew experienced was Other from income growth recognized because up contributed electronic fee-based income of Deposit income. a the of a policies life we income Both the insurance businesses. prior

charges XXXX, compared was up as driving by and We categories growth. interest down with account was for related XXXX, income noted which an due prior XX% to we million last million, we compared life which months primarily electronic to up directly to mortgage banking income, non-interest to businesses. in banking contributed other all $XX contributors was increases the which XXXX the income during the of As the insurance $X.X had customers. Through of additional in Deposit main linked to XX%, from higher environment followed fee-based income the from rate income the fee-based purchased served Other exception demand the quarter, bank-owned service first grew year. the were leasing during nine increase. the quarter,

to on total quarter. the and Moving had linked and software expense compared to X% We Professional expense. increase largest our processing marketing non-interest experienced fees, expense a data increases. the

as engaged processes grew implement we to in teams. and have help fees support to operational our efficiencies professional parties third create an - Our enhanced new effort had software of

acquisition-related We expenses also the recorded during quarter. $XXX,XXX of

coupled intangible expense lower premiums prior with year our due electronic to Compared XX%. the all totaled Our declined through decrease associated XXXX. insurance recent non-interest categories which to million $XX.X banking the growth declined of assets. reflected increases nearly amortization of Premier, expense in acquisitions. our largely the which FDIC acquisition-related total other excluding expense quarter We and The had acquisition-related was for expenses, third expenses with quarter, of

been quarter third Our driven the year. professional million, fees $X.X of had by XXXX, acquisition-related to expenses declined last which compared

On cash loan to XX% our perspective, This our year, For over large due to to increase down of the sheet sheet investment XXXX, total to last of driven growth, was also balance the the first grew of proceeds and end. and we portion in non-interest linked compared deploy a total quarter in to borrowings. utilized compared We paying while the mainly our portfolio expense a size a portion were acquisitions. able footprint nine the our balance shrink growth by months short-term our XXXX. fund

to was in in At retail the regulatory during checking linked continued deposits to seasonal of September our perspective, governmental to quarter each end. From the our ratio I capital Our half being common year the by with than decreases note end, was risk-based reduction in and deposit of interest Tier-X forward both bearing Tier-X a to partially year. XXXX, declines end. non-interest CDs deposits compared ratio typically governmental compared ratio our money would some was capital quarter capital equity experience improve the was leverage accounts. And ratios balances X.X%. that XX.X%, total markets XX% and our deposit our XX, and X% higher quarter capital fourth linked More we offset declined looking bearing

the to from to equity end. X.X% ratio linked tangible tangible Our declined at quarter X.X% asset slightly

by During XXXX, losses on ratio rate the stems unrealized improvements which interest for have more higher earnings from market in offset investment been from available increased than net environment. sale portfolio, our higher

our While to this we continually and are our ratio. investment impact a on be monitoring options, permanent we considering not this expect decline do

million grew our equity Our third XXXX. unrealized losses for to stockholders available sale resulting of $XXX on $XX reduction a during decline was this million. investment year-end, the quarter to Compared portfolio in the

at back the value, quarter the turn to Chuck tangible now an Our book additional accumulated grew XX% if annualized compared will exclude the comprehensive rate you end. call linked for other comments. losses, to I

Chuck Sulerzyski

the banks. city largest be merger footprint move profile of markets The credit the including organization Owensboro. and management and at the into has very Limestone will culture in our terms mix and seamless. team six great and us within will share bank of bank to some Lexington, put Kentucky will partnership think States, have covers The between Frankfurt a The big and community even merger among high-profile community other ours, more manufacturing associates They with Katie. ninth Louisville experience. markets key makes We Kentucky Limestone that United you, Kentucky. of attractive. which talent our knowledgeable deposit the is in similar market topnotch us Limestone is a associates and integration the the Limestone Thank

topnotch the higher forward is exchange with is Limestone estimated fixed easily high X.X Our be more This Limestone a customer look diversified needs. more associates stock workplace. the merger This with service consideration lending to benefit will suite to XXX% quality service We including also partnering current deliver a clients and while service, to at deal clients. $XXX will providing product capacity our give valued also locations and their ratio. a to million

realizing transaction, we will As pro-forma, expect far savings associated and continued which in savings cost XXXX ratio. in realized as Based this XXXX. in efficiency XX% with our be anticipate assumptions, we realized of these improvement XX% XXX% drive to our on

deposit lot We and as on the have fair loans completed work portfolios. far values projected of a as

this at environment. rate Our which the which pro-formas included of borrowing published morning the due in and illustrate deposit to on intangible, are is inclusive investor up portfolios, core deck investments loans, also we heavily X.X% the marks current the

execution accretion various We the have $X.XX of have will risks. expect also projected sensitized the of we the back rate is transaction and free scenarios. book 'XX to due of these are rate marks the benefits generally $X.XX and to be earnings accretive run A X.X we and our of respectively. have years rate tangible Currently, by portion 'XX a account EPS to expected marks for to earn marks, but the value

would accretive. our the will assuming Excluding combined zero X.X%, on acquired income, would be be earn average average comprehensive assets, tangible the assets the accumulated book believe immediately will XXXX other We approximately intangible marks around be deposit for core and period while return back value on return be equity and XX%. no the on tangible rate

the capital We decline pro-forma based also results. will build on earnings efficiencies. We back ratios regulatory anticipate believe quickly close this with the of that and improved will our at merger

Tier Limestone our other including approvals. be X subject satisfaction XX.X%, accumulated conditions, the our merger regulatory is Tier XX.X%. to marks, common ratio shareholder at projected income X while of decline to Excluding is would equity customary ratio capital comprehensive to and rate and closing The capital transaction

performance. our to back Moving

of the year working to a are out position strength. in We close

processes. making employees. benefit our efficient, on in becoming investments are our and while in an in focused We and income and acquisitions effort terms both clients We're infrastructure expense in recent meaningful of operational our growing to integrating more our business

the finance includes We year quarter our within of have added commercial increased estimate industrial group. per to share, the our prepare of the to professionals accounting and to DC wide this to experienced high for level $X.XX Washington $X.XX talent bankers This our We organization our future. associates quarter. diluted range area earnings for bright exceeded consensus from for which a in

provision driven not were earnings releases by credit increased losses. Our of of

Here expectations full fourth XXXX one-time the are excluding items. our quarter and year for

full X% to loan We the PPP expect loans. year excluding for growth be X% between to

have to will that in quarters relatively believe we we cost, these grow While seen our levels. credit future low historic

fourth basis charge-off percent in was the XX quarter, rate net we quarter quarter, our growth. We slower but that XXXX. of than will at XX our points a third rate there For anticipate think opportunity expansion this charge-off for margin points the third is a net balances including quarterly fourth points XX pace basis leases interest to between for will basis net while our still the as of quarter be some be

$XX efficiency for XXXX is the quarter. XXXX our for There million of are our We as accelerated between of for the quarterly employee And we to expenses non-interest - me, expect of million inflationary between from of increases track $XX we still to slight and the excuse in increase January a fourth on full X, ratio October efficiency for portion total XX% XXXX. merit base of have X, an light below pressures. XX% year ratio an a

will looking X% anticipate We out growth ahead the of close to between and We we impact some and year-end excludes flat loan we margin X.X%, rates to which provide, for and As believe compared as relatively to Limestone. which be interest have net guidance assumes between XXXX, for X%. year XXXX XXXX X.X% of the start XXXX.

fee-based our We to income higher XXXX. in X% expect will be X%

each accounts related of and to year and compensation non-interest million. due contributions to health employer $XX projection expenses first salaries base during expense, savings and payroll increases. our normally stock we merit higher annual between million higher such expenses quarterly that projecting This quarter are includes We the $XX see as

be ratio our XX% and to XX% the of between basis increase XXXX. full to five charge-offs to XXXX net during efficiency for see We believe year. about compared we will We expect an points

above, $X.XX. we we Again, will do we benefits of are These we analyst believe and will $X.XX very estimates average estimates. the are the and to excluding Given highest from these we Limestone. range currently so optimistic XXXX about estimates, that very beat of all exceed and current comfortable, will $X.XX the

we we in quality. We recent the Once quarter have for our the the our results in third Considering on and the for facilitator. a This open Sulerzyski Financial are rate our investments keeping will session interest for is now and will environment, questions. commentary our made we close the time. Katie hands eye this changes joining credit with of concludes our and call call business at the pleased same back call the the Officer. me Bailey, again, is Chuck Chief Q&A into I turn are

Operator

Thank you.

now [Operator Instructions] the Sandler. session. question will Brendan first will from Nosal go Piper begin We Our Please question-and-answer ahead. with come

Brendan Nosal

and How guys? Chuck are you morning, Hi, good Katie.

Katie Bailey

Good morning, Brendan.

Chuck Sulerzyski

doing? How are you

Brendan Nosal

Perfect. little due deal bank time how Maybe deals to now us a is the to today perceiving just background on these bit market and offer just off, area the right on start came why how of given could is remarks? you Limestone about the thoughts heavy

Chuck Sulerzyski

Yes.

So Limestone talking we've to many years. been for

Frankfurt, of - by, Kentucky, been has joining in Louisville, We disappeared. Lexington, central cetera. getting as Obviously, several interested et time have have targets very the in more gone

partner we the scarcity value, Limestone grateful. conversations a which term, were is have we're institutions there from long with very, and perspective. thought think for right different They I So the the had very

been acquiring waiting, good obvious have very, are strategically it's the a right me, far very may are that them. the deal that timing, banks we tied other and important not area this were as for There been there. now now, in and banks And up As right buyer deal. very have to

we the So value. scarcity saw

we price. think respectable paid I a

future. about reasonable. we is And tremendously excited back earn think are I the

of big insurance, indirect, to capability and We of lot within, lot have capabilities, use We're institution, team larger think bank there's but refugees, a of they to customers. great large a just have tremendous the banks a we investments, great term lot mix we market, people They're people. to of the their have lending limits. lot with just community upside. a going leasing, of a bring They

Brendan Nosal

rectify of That's Fantastic. that book a color. experienced Limestone and years of credit then recent maybe the their moving and issues quality the of on, you can And through with today? then they right. last the All in in walk us aftermath to helpful the your work lot in credit downturn has during just overall kind done comfort

Chuck Sulerzyski

First Limestone the of think We're our all an been that done on who of mimics credit the skilled quality of much credit their had. capability. has are with Those all, they portfolios very job, the talented, working I have of extraordinary very it. quality folks associated very The not portfolios. issues

So about we concern have no credit. their

the indicated deal. I think in the mark credit on that's

Brendan Nosal

right. Thanks the taking All questions. Fantastic. for

Chuck Sulerzyski

you. Thank

Katie Bailey

Thanks, Brendan.

Operator

come with ahead. will next Our Please question from KBW. Tim Switzer go

Tim Switzer

Thanks my there. Hi, for taking question.

Katie Bailey

Good morning.

Chuck Sulerzyski

Good morning.

Tim Switzer

guys question if first you is could that savings, my of the be a guess will occur to XX% the us expect cost when of have as I morning. that coming on bit on you little a same you as just well? and Good where conversion, the And background give system systems if lot they from?

Chuck Sulerzyski

not they're do FIS, Jack We're the same have on Henry. They on system.

the expect happen weekend August. conversion system We first in to

expect to combination close a the The savings of We will deal labor. kind second of and come, quarter. systems in the

Tim Switzer

you then the revenue about hoping there. talked opportunities Okay. about selling are and then, any you you possible know on and guys Could to achieve? you the I that see? Great. that lending maybe ability cross And synergies talk higher

Chuck Sulerzyski

to first in did having where what we revenue are off, Citizen hundreds dollars income thousands that we're the none we'll Well, acquisition think from of we're that last anything experience a synergies fee of investments. we of Premier, in have having trust modeled. and similar that of the We year

beginning previously, some opportunities. evidentially We indirect that were leasing a are introduce more doing than lending we in to doing marketplace lot

a offerings. plan retirement we've robust So really got

to. we million, that is that much I need be and helpful. think the So will $X can a upside than million, will But just lending tremendous more it be more that capacity and if butter customers, bring obviously million but this we we bread do $XX $XX

Tim Switzer

a at The the some in really NIM little Great. of you you for there? Would talk is, it's getting path the, I more a bit us helpful could XXXX, last expansion but giving guess, question NIM about the I see you the want say, how of, Okay. know the end you're about range had then, And catch expect thinking year? Kate, I end of maybe front year just compression of NIM to next that? repricing up and deposit when this end at the next year.

Katie Bailey

Sure. this one. I'll Yes. take

So right. I you're think

I think expansion we expect some the do more quarter. in margin in fourth

I rate of next think some we are then, week and end And play. a there's increases December. expecting couple of at factors

the cost shift So our increases, But do I recall, we you rate a think have if increases. some then, balance on. expect deposit going we on mix sheet

So also fund, bank. and our year, higher then than our decently work portfolio, portfolio, experience core we in yielding leases have the early some in core lending some those banking this the investment we the but lending to what that growth portfolios provide, so some stronger we cash for would platforms there're than within put are in

expansion mix so that some is shift well. providing that margin And in as number

Tim Switzer

I you. got

might able portfolio leasing some offset already deposit of lot yields other the in growth repriced? once be to a repricing have So the asset of the

Katie Bailey

Correct.

Chuck Sulerzyski

our that just of really And that, low is the would add relatively I very quality beta. deposit book, in of value to the the of franchise

I I going already. rates you'll think the you've of think of up. some see that seen keep that as But more

Tim Switzer

you think beta about guys you still I Yes. And Is for that a last a good quarter. XX% deposit guys? number talked

Katie Bailey

would as - But little and least we we 'XX That range to and higher see that a that's what experiencing model. in we have quarters. it's what definitely than expect few we next think I I the upper the higher our not projections used we and what some what we use say seen than we've at what been did. That's in in

Tim Switzer

for Thank all my Understood. it. taking you questions. Got

Katie Bailey

Thank you.

Operator

next Please question Long Our David with Raymond James. come will from go ahead.

David Long

Katie. morning, Good morning, Chuck. Good

Katie Bailey

Good morning, David.

David Long

the follow changing I changing. just the the see asset discussion wanted mix next about acquisition? the of course Maybe up obviously over talked the excluding few mix to quarters, quickly, you here. you Do the deposit deposit on

Katie Bailey

shift. think No. major I expect we don't

fourth we you'll quarter think for in as seasonal noted, the our a I is governmental point see low deposits.

And kind our of the March numbers, of they seen we've timeframe peak - in off decent retail as had So timeframe. probably and CDs. in the you've as you've our in run September

those run-off the I So expect governmental the and beyond excluding two from CDs, don't mix the think the deposit seasonality that we of portfolio that. of kind then much shift of deposits the - within

Chuck Sulerzyski

And non-interest percentage. bearing are I and a high That's interest-bearing. add, the pretty DDA, of would XX% deposits

you're than I deposit normal. more base So going to see a think stable

David Long

Got you. Do see XX% the you see over several that or sticks think that coming you'll that can you quarters? down - next

Chuck Sulerzyski

it's No, fixed. I think

David Long

Got it.

to Okay. then, competitive I just really with you compares and switch wanted and the how the Cool. transaction. Kentucky see color. for acquisition Thanks talk landscape the to picture you that over And in what to Can a that current big maybe your about footprint? perspective from

Chuck Sulerzyski

going that on capital Virginia what multiple multi-billion last the over are investments more state. And of is in you've XX First all, incredible investments. I seen each experiencing we're think Ohio, West dollar and Kentucky, years. right than There much now,

headlines, going battery And plant. see Kentucky commitments many their so renaissance that a Ford's are it's on whether think manufacturing But whether or you seeing national more on. things the a onshoring there both I to driven So from standpoint. by Intel it's big

and - to Kentucky like next very, we So that we're market in Ohio both we be West the over and there's like very few Virginia optimistic going Kentucky, a upturn years. place the positive

David Long

Katie. Thanks, again, for it. color, Chuck. the Got Thanks

Katie Bailey

David. Thanks,

Chuck Sulerzyski

Thank you.

Operator

Our D.A. will Manuel ahead. Please come Davidson. go from next question Navas with

Unidentified Analyst

morning? Good How this This doing Manuel on you Hi. is of morning. Navas. are both [Cameron behalf Sholgreen] actually

Chuck Sulerzyski

Cameron. good, We're

Katie Bailey

We're good. How're you?

Unidentified Analyst

you. Thank well. Doing

the you seeing on to recent guys your acquisition. in Do So regards or in anymore what the with plan upcoming are opportunities future sticking post M&A? transaction this

Chuck Sulerzyski

to some take this. digest will we that think time I

over go have also $XX getting urgency closer We no to and are to billion billion. we $XX

to associated forward So to look accruing. this keep and the is for certainly benefits going XXXX

Unidentified Analyst

anywhere? or Thank expect specific have see in worked customer just question one you attrition follow-up do you. acquisition. you regarding And Do this to then any that

Chuck Sulerzyski

customer see that any attrition to customer don't attrition. deal do. you're bit is of we dream, significant Saying reason see be customers in for You retain that but pipe there you to always every any a going of a all XXX%

Unidentified Analyst

both. you, Thank

Katie Bailey

Thank you.

Chuck Sulerzyski

you. Thank

Operator

go [Operator from McEvoy Instructions] Our with Please next question Stephens. Terry come will ahead.

Terry McEvoy

Thanks. morning, Good both. Hi.

Katie Bailey

Good morning.

Chuck Sulerzyski

morning. Good

Terry McEvoy

Maybe lending the C&I - the planned what growth was the in just about third manage that was areas quarter. of down the just Maybe in certain slowing maybe think to with some risk you one behind Kate, some kind the I and mentioned talk area credit in leasing. start and was of

So comments. know for it's And not, at in your based like you that on I some or growth kind else. of leasing were portfolio earlier outlook didn't the sounds optimistic pointing something portfolios, pretty it if if

Chuck Sulerzyski

I'll Yes. start that. on

good First our fact businesses we did the it's would business of ongoing off, I time. we year. will XX% slower expectation neighborhood just over growth C&I next leasing and are in leasing optimistic have good say, in on And is leasing of And have and that growth. grow in kind the

We really good looks to positive indirect continue look And - didn't indirect also on the strong. and and had consumers we stay growth October the front.

very are pipelines robust. Our

made this growth. growth had of had for we robust year, we changes to very selected some have we if not would loan loan portfolio not - some improvement, had credits Our if existing overall

acquiring And we Premier with than in X% the is, we're to going we're next be acquisition. that for is a think Premier better the X% do portfolio that the portfolio to going this picked to better up we're it we and significantly year. As year, little

So are optimistic. are - we we

Terry McEvoy

The your follow-up. are a that income margin outlook? just on what next And within $X.XX for $X.XX to accretion year, thoughts

Katie Bailey

Yes.

saw of range think quarter. third we it stays I what the in for the

XX points basis quarter, I the quarter. XX I So, guided think to last

down range. think point basis basis XX it impact might around in I the But basis think points. dip that XX quarterly points, basis. on a XX I stay will It

Terry McEvoy

increase citing we you like you referred And when company of you Could benefits how in - parts talk more. of about fees, professional the about you evaluating operational efficiencies are kind were the what potential What one looking maybe. from teams the - enhanced at? positive think your Maybe I as the internally? to you're think should of

Katie Bailey

Yes.

automation, it's fold. and finance in growth. loans again and operations, a in areas to couple the of support true looking, operational think and just - for I deposits, and credit both technology It's the looking

as head So - dependent we to not count. going incremental We're grow. on not growth not it's count as is head forward as

Terry McEvoy

both. you, Right. Thank Appreciate it.

Katie Bailey

you. Thank

Operator

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

Chuck Sulerzyski

extremely just I'd of out like Yes, I'd the joining do thank level like and for beat that Limestone. we're to going reiterate estimates the without that feel we'll highest help that to to of there, everybody comfortable analyst we us.

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Operator

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

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Peoples Bancorp (PEBO) 26 Oct 222022 Q3 Earnings call transcript