PEBO - Earnings call 3 2023 | Peoples Bancorp Inc.

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Operator

Good morning and welcome to the Peoples Bancorp Inc.'s conference call. My name is Anthony and I will be your conference facilitator. Today's call will cover a discussion of the results of operations for the 3 and 9 months ended September 30, 2023. [Operator Instructions] This call is also being recorded.

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

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

Charles W. Sulerzyski

you today. thank joining and morning call our Good for

third XX% our our are organic the increased which to fee-based income record grew X%. linked net growth, evidenced strong with Limestone benefits along and earnings the in for Compared quarter, our our quarter. to interest our We is of merger the starting realize revenue

return the to equity average XX.X% on stockholder for Our improved quarter.

was equity While our tangible return on stockholder XX%. average

average assets and the return XX average net on for Our increased low of basis remained loans charge-off basis. points also an X.XX% were to annualized quarter.Our on third levels

$XXX linked due have end. annualized growth X% campaign We to $XX of successful had strong quarter loan to our CDs deposit of quarter. the or increases compared our million which million quarter, the during the to We mainly was in a for retail balances linked compared

first flat XX%. prior stayed Our ratio compared quarter, positive quarter compared generated operating year loan-to-deposit quarter, linked X We and leverage linked of the months XXXX. at to the to

decrease $X.X totaled expenses Our quarter.Diluted XX% by diluted the termination from quarter, $X.X per million, during third included prior pension of EPS, impacted earnings $XX.X by Limestone XX% EPS quarter, year compared in diluted of linked earnings to for a the associated quarter one-time $X.XX and acquisition-related the with pension million a were increased which plan, in the negatively were million, $X.XX final $X.XX of negatively share and resulting impacted cost and which settlement $X.XX. the our charge

or costs ongoing charges of pension termination.Moving as our result future plan settlement a to any recognizing final quality. be to longer on no credit related will We our this

our linked during macroeconomic the at represented funding conditions within and for growth A rate updates loan prepayment our model. attributed deterioration loans allowance losses CECL Our and including of quarter factors, quarter to compared total curtailment, of several end. credit higher allowance to the quarter, X.XX% to used was

end. analyzed reserve All due in and for reserves a decline for $X.X to and million increases annualized quarter loans.The the classified our was This at asset at June and relationship. estate nonaccrual individually real in of criticized the were included balances commercial our single offset on of totaled individually partially largely XX, by loans linked a reduction our these relationship was in payoff

recorded the of to which the during A were compared quarter end quarter third also is was assets quarter.Nonperforming considered portfolio XX% charge-off June flat and on XX%, remained our to a loan at flat XX. payoff at XX. We linked portion September current at relationship of this $XXX,XXX total assets compared

months For the net On declined points linked our at quarter, quarter consistent compared points, X.X% points for rate to annualized of loans. year was prior to was XX annualized our the year-to-date total and while of for were XXXX X basis basis increase basis rate X.XX% end, for quarter our from loans XX basis, XX basis charge-off the with and total an points net of charge-off quarter. loans increased the first loans X XXXX.Criticized classified a

portion it relates total small of As our portfolio. at our were quarter $XXX and office of loan very represented outstanding a which loan our X% portfolio, space, balances end is total to million commercial

and high with have project We portfolio. demand successful execution been continue delays. to see our occasional construction construction There

projected.We up than in rents work high-net appropriate increases often individuals and withstand leasing carrying delays interest are at to projects and at these costs generally worth However, speeds been typically able who in timing. with have higher

a construction the likely more and certificate the We are of achieving quarter number in projects have quarter. fourth third witnessed in of occupancy

As had remains not portfolio, million a $XXX construction balances first of $XXX multifamily This through end outstanding of the quarter now the the commitments. or has the percentage X.X% outstanding to construction in compared million at from and the come a advanced balances grow $XXX seasonality, of million. sector million quarter. in merger, but total rest a at also due development at representing to continue to phase $XXX projects only small as result, which outstanding Limestone Land of close. at loans has The quarter saw end.Our million decline current $XXX loans in balances construction balances portfolio

and construction Our top XX metrics located end quarter of within notable balances These and markets $XXX X% million loan guarantor for multifamily multifamily loan projects loans of which comprised with funded XX% of our phase. the growth total X the portfolio. accounted are in were at support.Hospitality portfolio, are strong

merger. XXXX Limestone the in balances Our to due have hospitality loan grown

were shifted of distribution in X-month a within However, competitors Ohio. largest XX% out-of-market in the an hotel of our the X footprint are The span that Kentucky, hotel hospitality quarter XX state flag portfolio The reported our exit portfolio. projects was and geographic XX generally at XX% XX portfolio concentration funded able through with we acquired hospitality XX%, top Other and with represent including of trends respectively. the the suburbs exposures the third of in Limestone the Cincinnati, located throughout above at loans remain quarter our Limestone merger. Ohio. with end.Occupancy to hotels trailing trailing occupancy market of the acquisition

selective a and We working support, are net-worth do high segment of individuals be our to to that provide highly in plan with hotel continue sponsor total as percentage not this increase exposure We including liquidity. quarter, meaningful refinanced be overall we'll in fourth to in portfolio the manage sold our assets project will a way, shift loans anticipated continue to can. the or exposure mix. where and we are which Specific

domestic potential dealers auto manufacturers. $XXX dealers dealer evenly independent vehicle vehicle X% in RV end, strike to dealers. and Auto auto, franchise the the are domestic continue franchise assessing floor specialty by distributed was supplied who commercial the to portfolio of was closely million the truck which portfolio dealers, foreign plan of among the auto, impact to Workers The the remaining XX% and United of another we was We our of quarter our had exposure XX% monitor on portfolio.At

well are dealers stocked franchise domestic new vehicle Our with currently inventory.

the persists. have delivery So sales. strike vehicle impact had the of in a withstand positions should clients not larger strikes our yet liquidity vehicles, We meaningful the to on have delays believe short-term

position Our approaching XXth an largest debt floor of clients a Xx. ratio plan service with have trust average X.Xx

XX% linked end.At loans real to loans finance XX% top balances $XXX and or At plan loan the quarter to XX our compared Our our commitments balances commercial contributor nearly were were consumer estate occupied. annualized. construction same were compared September loans, grew industrial were while in totaled XX% variable fixed end, the $XXX million, with growth. businesses our XX% some X loans, we were our rate to which owner X% while commercial comprised $XX grew the in our loans, finance cover of time, The remaining top and loans estate and At of which construction total million total commercial commitment.Compared million largest quarter provided commercial loan a Consumer XX% our rate. specialty $XX industrial $XX had million, total indirect XX $XXX while real June in end, X%. loans of growth totaled XX%, million, the total million, declines total at loans nearly of up XX% quarter linked and our loans over floor XX, of were the specialty was

turn now rate additional our variable these while the operate they Tyler premium deposits reprice Limestone to every loans fixed over conversions. income, to our systems months.I Additionally, details rate, and X will loans finance loans, and the call about fee-based for are similar

Tyler Wilcox

Thanks, Chuck.

service to higher higher months XXXX. to quarter, merger, acquisition from prior year to first linked fee-based insurance resulted mainly the the quarter The XX% X Our compared grew linked quarter year markets. compared well deposit prior income client insurance the and and as charge account to prior year, income year the due was were additional X% compared Limestone accounts income income banking increases this the by of increased periods.Our considerably compared has electronic XX% than improved hardening the higher efforts driven which period, and in as to the

a insurance life around residual the a our which million $X.X We end. quarter operating benefit paid X other compared residual the totaled book. million the during income, which balances lease we deposit acquisition the of million off for the which quarter with time, fair the same the quarter to associated by the with income bank-owned $XX of third the the from we deposit income. increase our leases We during acquisition, in increased Vantage recognized quarter. $XXX,XXX.During a to noninterest declined to compared acquisition.Moving were on also death linked values the our to At as quarter, lease of our XXXX, recorded unwind The the related $X.X accounting recorded associated of Vantage linked premiums result premium drove

a grew of mechanism, recent the collateral. lower $XXX contributed brokered as our as funding with of than in seasonal year, typically decline do otherwise result provides each to Our CDs in we retail increases pledge governmental have to CDs last which noninterest-bearing utilized use during require cost of third it might us the recent campaigns, we more borrowings our FHLB us CDs a we offset million.As the mentioned $X We which growth funding quarter deposits million deposits. than and periods our not quarter, the brokered as have a in

commercial in June in XX% consumers retail to included balances. deposit deposits deposit total quarter XX. small demand composition which businesses and At and of quarter XX% comprised XX% at compared at deposits balances, comprised deposit of Our end end, our is XX%

customer while Our average and average our at was to $XX,XXX the our conversion our our $X,XXX.During median the system system. interact in coordinated August, of consumer to -- helps clients. September our offerings more completed optimize XX, collaboration relationship deposit This partners core our business business effort Limestone lines of for between successfully was new allows together to a we

to their helping I'm our communities of model annual culture paychecks our work footprint.As $XXX,XXX a of business contributing local that over have our continue our note we associates banks, and food portion expansion core a contributions. of results our approximately priority. of throughout to on make We of part pleased in values, we the to now XX% new which always

workplace to will top-notch for services provide for row second our in in of additional a our of excited workplaces Katie, values turn us a that over who providing We're performance. call to will recognized as environment. details I Another our industry around XXXX.Next core part top the the and with note year the financial financial one is Energage the associates

Kathryn Bailey

Thanks, Tyler.

interest Our as Limestone from controlled XXXX. income amortization accretion merger, was additional XX% related linked in our margin quarter, and funding Compared net June an refine of XX X.XX%.During continues value $X.X market basis we our growth, rates and the points we net recognized high quarter, quarter income interest of This increased the to grow to third to our million fair income income of expanded up resulted in during being expense. from the a full from costs. Limestone merger net net marks benefited interest interest income organic interest and net the accretion and quarter May the margin and as

totaled million the impacted net by third income $X.X quarter, our basis accretion margin and For interest XX positively points.

the quarter for specials. our Tyler our helped higher accretion and income increases retail Our CD yields we our in mentioned, costs.As loan funding growth benefited have recently offset from advertised

quarter. our in we relatively the for low increase However, we control rates and the funding held offered the costs,

was cost the deposit XXX quarter total to compared basis XX basis points quarter. Our for for third the linked points

beginning income total the quarter.Compared year-to-date grew rates XX the the and has quarter to total up XX XX the basis income Reserve our of On time, deposit expanded expenses. have increased for points brokered costs Since basis year XX increased XX%, exclude basis, for interest interest our the deposits, you gone and quarter, XX% rates betas was to a while over Federal have XX%.Moving our deposit basis points on At X.XX%, X.X% interest-bearing basis prior the margin to X.XX%, interest time-period, of net points. XXXX, our grew broker compared points. and Excluding same the linked net margin in our a moved are if CDs. deposit net our up same

the quarter. X% compared increased expense total Our to noninterest linked

noninterest and acquisition-related comparison expense million. of from full of pension basis, lease totaled million, Limestone and basis. the expenses, operating footprint.Compared on to Limestone a the higher expanded increased merger we a the XX% and XX% We year-to-date year prior acquisition-related $X.X recorded was quarter, total prior $X.X Vantage recognized a by for impacted Our a year-to-date the have the The charge to the costs been on acquisitions. expenses settlement periods quarter quarter these

noncore XX.X% Our reported was quarter quarter. efficiency for the adjusted for linked for When ratio compared improved the expenses, XX.X% XX.X% and for XX.X% was to quarter. compared ratio efficiency our the linked to

This best decades. ratio in adjusted our quarter was efficiency

the for At was For XX, XX.X% balance total September at on of rates. reported portfolio the during of declined months linked be our for ratio the investment positioned XX.X% our the to first securities quarter portion sheet. end. interest investment movements the potential assets our from our growth. We compared We to utilized of portfolio cash to XX.X% XXXX.Moving X a flows continues portfolio compared XXXX, efficiency to believe in to quarter loan well investment fund to XX.X%

Tier significantly will to be intend falling benefit and as investment rates restructuring.Our from it We impacted We higher a increased compared Limestone. common of full was by included to earnings, to quarter our not continue improvement opportunistic a relates our which the and be equity linked X be end, At potential The and levels result higher rates. quarter capital quarter was should portfolio a XX.X%. end. of to strong our capital ratio

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

to our due ratio and in mentioned level. quarter, at have last a our merger now I As leverage normal inflated call is was the Limestone

impacted turn to equity to at ratio market Chuck tangible X.X% by and comprehensive to to tangible will end. driven accumulated his losses, interest quarter now X% other back Our quarter end quarter This asset the ratio the compared was was our for which declined be this and final at the linked by higher rates.I comments. continues grew call

Charles W. Sulerzyski

Thank you, Katie.

to in asset positive earnings, prior many other work strong and have strategic to continue model to quality We hard We metrics periods. believe and compared daily. execute business our initiatives our

in assets. cross are We $XX billion mentioned to positioning we consistently ourselves how have

making processes we hired Along to order plan. will We have have us and to transition. many talent our those are associates lines, allow in that investments a successful senior in execute systems,

expense incurred of As that up. we far point to cost, we this as we the already at estimate have more have left than pick that

software the continue We on These make and replacing implementing customer e-mail full have new expectations the of and our in relationship communication investments in order with best-in-class XXXX. our systems of include our to to current a system to process systems. for Microsoft.Moving year

margin full X.X% we it third we to year. experience X.X% for be net income the Excluding still some fourth quarter, interest but believe compression anticipate will and the in the quarter between acquisition-related expenses, our and will compared

be Limestone and between loans, X% we organic loan the our annual growth X%. Excluding will believe acquired

for to a full fee-based the excluding compared our expect total Limestone efficiency to between be growth $XX which XXXX, percentage of We we are is still expect fourth and ratio, still expenses digits noninterest low This year our million. achieve merger. to to in associated anticipated to in Limestone. with compared and mid-double income XXXX.We increase $XX year, We savings acquisition-related anticipating be assumes noninterest XX% continues the expense XX% full one-time cost to the XX% excluding expenses quarter XX% million XXXX, including assume to our for our between expenses

We third our the during charge-off relatively diluted will our EPS was consistent XXXX.For estimate analyst expect net rate core with be the XXXX consensus per share. of quarter, $X.XX

expenses Excluding our exceeded acquisition-related expectation and pension this charges, settlement by we $X.XX.

have the of quarters. consecutive XX exceeded XX last We quarterly consensus estimate the

in estimates. beaten for EPS in acquisition estimate we credit provision quarter we missed the is the for cost core have would you X exclude losses Premier diluted consensus The For to one if related XXXX the current day $X.XX. acquisition, XXXX,

expect to to year acquisition-related XXXX, full provision the of settlement is pension like XXXX, to guidance continue loans.I acquired losses consensus credit high-level Limestone for for would We for one-time for preliminary. some estimate expenses, give and the the beat excluding charges which

We see expect low the compared growth believe We percentages be Limestone benefit will to our the we income merger. as double-digit XXXX. will higher net interest in year the of fee-based income full

We expect our X% the quarters quarterly to $XX be be will loan and due quarter our believe we being fourth with the higher We second, million of each during X% between growth noninterest XXXX, expense million and year. between recognized first the quarter to annual first $XX of compared typically for XXXX. third of to and expenses XXXX

in the provision this of projected growth, merger the anticipating we result quoted we provision a for an XXXX. also credit increase for As are losses, excluding in one-time our Limestone

next successes, continue to capitalizing this relationships call.We our are our We clients. looking recent we'll at on will with develop our forward guidance update and to in January our

current experience. client commentary, Q&A the With full diluted XXXX lines Wilcox, this and me our is working our in consensus call Operating we our now again, Bailey, that identify feel the we confident of back Tyler on Once call being is together businesses Anthony. the and our At focused the joining achieve this $X.XX. and into Katie are year of session estimate.This Chuck our will this Chief ability Financial to time, will concludes and questions. call needs for to for the Officer.I turn is open hands overall Chief for estimate for said, of the Sulerzyski core improve Our Officer; EPS facilitator, client

Operator

The will Daniel come [Operator Raymond from first James. Instructions] Tamayo question with

Daniel Tamayo

or you've and had if high. in you curious start just assuming But got there out, fill you the kind peak particularly of the -- remained thoughts accretion quarters? -- stable going one-time a yields, that third which on if here over plays few margin on not, we we're Obviously, benefit if us quarter. the your in the how are Maybe from think rates you are the could loan next well relatively accretion as on very the nearing And forward. just

Charles W. Sulerzyski

with I'll I'll have start Katie and yields, talk about the accretion.

improve Our we're there yield there's room some think little the nearing for X.X%. weighted a were to the We bit, average top. quarter still but

there next but we'll on as increases. if or rate as yields. Your there two, quarter even guess is see increase another good surprise wouldn't in rate It is, higher mine is the me if

Kathryn Bailey

relates it accretion. as Danny, to And

in second finalizing were So that the which and of there of the quarter, some $X.X the was purchase been we of in as script quarter, third in but those estimate recorded noted an in are as numbers. we release, second a should in in quarter, accounting the and have the true-up using refined the earnings there million

the in script, the points say the would third quarter. XX I So benefit was was of accretion in it quoted as basis

to deals much our rates acquisition, of rates discount XX% can prior we was are again, mark impact. related think Limestone related the that the If to than out basis of expect the back on have obviously in points X in bigger for about day a closer and XX% purchase we've other the environment to to low relatively to XX I credit.So fourth of, XX rate If to, the XX accounting go would that it second interest and benefit. loans you created piece stable. we been quarter seen that when quarter, take And kind related

down. of to as some would payoffs loans higher say in we that to seen I continue accretion haven't pay So a portfolio. lot we'll continue see those numbers

of a get So accretion payments. had that principal as is the basis just that we'll that matures much normal on quarterly portfolio and

Daniel Tamayo

you just I is the maturities be already then, on down CD other sorry, in have I I'm the comes on thoughts very of equation, from maturing quarters? just have apologize few helpful. in the those the that the -- of anything a CDs it And year That's not then, curious, comments. to maturities have, if margin you side the mentioned here? And if next kind if kind you on the in that as high may you've going next that up of end curious where any guess, sure overall the book,

Kathryn Bailey

Yes.

So from XX we've anywhere months. on the running CDs, to of been the specials are kind X

quarters, will to remain mature to our marketing the they or and on So start active price efforts yields we on in and continue those. coming

going margin quarter fourth the in stable into think to hold bottom fourth relates that into and it kind quoted, there, point quarter. we the hit to, expect 'XX period. of, will As into relatively compression some we it expect but we the do as And from 'XX, I

I year. south we XXX. a guided or for year for will us And range So be that that you'll to the 'XX of the XXX see think XXX little full I XXXX think

Operator

comes question with next McEvoy Stephens. from Our Terry

Terence McEvoy

you. you to sheet? the down pay of additional size question you short-term And a Will portfolio the maybe for for Katie, additional are about Could the restructuring? just managing within borrowings? actions talk there securities continue balance

Kathryn Bailey

Yes.

borrowing growth of short-term flows. function a is So know as deposit you and loan

And a basis manage daily historically. that so, have we'll continue to we on as

securities, to the continually script, that restructure evaluate On in we as the investment portfolio. opportunities referenced we

offset at million which will we of quarter lower-yielding securities, up recall, offset extent and likely time.And might a clean that you our meaningful some in loss the there of took we did the are we securities those experienced about the loss amount to the As to to that a first there. $X and gains,

kind kind of are from X loss payback look what restructuring the And in quarter well we locking we're -- between the X.X it trade. at that what to payback the investment is as when for we is look is we on that, to somewhere will as in security the range years option. at willing trade the at range as evaluate relates We the in on where and it years of to that payback look we accept to where continue the that,

Terence McEvoy

happened. comments then Limestone. just loan the the on line touched was this And tracking that customers? know lending the on or and business said cost in I you comment expectations? businesses but on the side, And throughout on are any maybe I call, to think runoff? table Anything with with hasn't savings early products those synergies bring of between to some you that new deposit

Charles W. Sulerzyski

point are time. maybe this more expected be And above as and deal are situation. with where leasing be coming I'm in to or indicated, terms the the them we the slightly back we We become do it. be, runout do see the to little associates I where each would together. beginning, would in we in investments may market saw we a loans, it's as so deposits think newer week to we and at you with how passing we what of than they related the the not have, related sure, stuff, synergies, more the more familiar insurance Costs tracking The thought probably in bit

Operator

Our with next question Switzer Tim KBW. come will from

Timothy Switzer

your guys for and sense leasing Perito. from Can But ] be on assume, portfolio. to makes to expansion -- a year the of how single think ask many there the basis Like over trajectory rates? over the given and 'XX, holds the I'm how a assuming the like could on the that points of help help you I are course like digits QX, versus see lower for would margin guidance quantify do I follow-up it a to growing look it's course interest with, we for basis of wanted full in the of you mid compression net year? lot troughing the [ if you high loans to on Fed on should 'XX, see. we Mike us quick the

Kathryn Bailey

on we a beginning points quarterly end to think X to basis. XX basis of I mean could from basis I expansion quarterly from see a

Timothy Switzer

each basis quarter? to X XX points Like

Kathryn Bailey

No, in I'd more say total.

So each a few quarter. basis points

Timothy Switzer

Okay. QX. you, over I got QX

Kathryn Bailey

Yes.

Timothy Switzer

And next like have rates hikes, a an out from let's your in sheet to have What stated and idea that sensitivity of the deposit of you scenario if year. costs balance it's the look of say, would is sometime the after rate where this a scenario? what like in kind -- do that cuts -- settled NII

Kathryn Bailey

to I say would we relatively neutral. our positioned balance have sheet be

have the lower on and we therefore, portfolio into last benefit have scenario quarters. rising on base the our rates case We predominantly of put much hedged and taken from what the few have the side, through investment securities over

Timothy Switzer

not achieving And environment? given you next what are risks have maybe economic the that assumptions your growth leaders? And like which macro the loan of are for the the expectations year? And category what be should

Charles W. Sulerzyski

do we Well, to as C&I projects been come our much still estate we slowdown see as CRE as volume, completion, in some business a have in not new We customers. real see not growth but will construction will see we seeing.

Auto folks do better to -- premium be a expect seeing, continue.We are get and have will higher to we our The it. very leasing rate environments businesses when as are is percentage ability XX-plus few typical that to of strong of economic slower growth you see the good, environments, good growth. optimistic percent leasing finance in growth. we expect C&I out see or we'll businesses So of and

different actions of lot portfolios. a really across it's many So little

acquisition. lender like be large with very state things on We'll of Kentucky Ohio. franchise in the opportunities some able McDonald's have a We that in the to do

management. to granularity great for and risk is lot we So which portfolio, for the a of origination think great

Operator

Navis [Operator Instructions] Our next D.A. Davidson. question will come Manuel with from

Manuel Navas

with are, what of you especially they are with Just where kind the NIM beta expectations kind what your to, next your -- deposit thinking stays just of -- assumptions contemplate year, costs on the going deposit environment rate if do it?

Kathryn Bailey

Yes.

have we us high, to I our in noninterest-bearing getting I getting XX% have all don't otherwise, historically, to upwards pretty inclusive, think set our of we about betas XX%. that definitely but projections think deposit quite and we XX%. run

Manuel Navas

CDs the promotional if the at? during apologize on are comments. I the What and said rate kind you CD of it The coming prepared

Kathryn Bailey

say No didn't apologize. need to We it.

handle. put the of have X% tenures a out Some there that we've

Manuel Navas

Are you you you're customers? strategically? and the current keeping thinking funding short. of CD you you seeing coming How gaining -- customers? seeing are it about that Are pretty just Are from some most

Kathryn Bailey

Yes. but CD got fair would the amount XX% of from I seeing is the coming the new kind clients, clients, maybe institution. money. money to new somewhere and a in We're And not say, new of XX%, maybe between production new I always specials

Manuel Navas

pretty and And into permanent metrics historically, more and cross-sells you strong customers? -- turn those have nice that

Kathryn Bailey

is that the Yes, strategy.

Manuel Navas

can you even than this kind like like a I securities it It it's of walk did a the sounded the through bit? transaction you And right? -- within earn-back earn year, faster quarter? was target, me usually, Or back a then on misread it little

Kathryn Bailey

so back -- guess equated time So year. balances about closer the million XX said loss volume, to QX, and that can't at of we to a within what what in stated $X sold And the that would -- about quarter. we we first was maybe, for remember calendar sold What I pay was we loss million. the XX in that it sold I million million we we did about a X of

a than was So that strategy. yes, less it on payback year

Manuel Navas

sheet And around you're willing you if of play kind see it? opportunities that to needs years X the to balance up

Kathryn Bailey

years around the And hold to be that make Correct. those would through. X earn securities confident that for stick back we'll

Manuel Navas

credit in there, on just folks Leasing your just a I big on kind higher just moment, of for just with that a are business? And are Can in expectations picture, really what of strong talked that reset interested trends. about for focus next more kind leasing. expectations of You also, expectations kind rates, year? has been

Charles W. Sulerzyski

Obviously, second business One lease Well, charge-offs. you XX%, ticket which talk The a is companies. second growth of we $XX,XXX. pricing XX%. in north in leasing in the neighborhood those at one, this We is yield point time at the in of about some see a have for X percent. in I'll for average room and are that the or originations leases ticket XX-plus small about where of average

we're are XX of business couple X% than X% last have the that.The over business leading leasing size focus next well-positioned for technology. in charge-offs is Many average a months. compensated their some high the The or clients may ticket the Those They years Our country. But less Vantage to well go been about as as is traded X.X%. of charge-offs $XXX,XXX. districts, publicly getting our for on there second of school obviously, in the companies, emphasis Minnesota. have hospitals

we had expectation little -- expect with that We charge-off have business. very

in the of little are the X%. very activity have next on to XX yields that months. expect We neighborhood originations charge-off in Their currently in

Manuel Navas

seasonality I great. And end seasonality there's towards businesses? Is there right? That's appreciate some the here, the two with really a it. year those of

Charles W. Sulerzyski

but makes Seasonality, much not bit not there's little a that of a difference. much it seasonality, that -- yes, that of

Manuel Navas

XX% that, and I making yields sure just And of X%, confirm right?

Charles W. Sulerzyski

less. or more Yes,

Operator

next Cardenas question Our will come with Daniel Janney. from

Daniel Cardenas

little you I may bit late on this. But the leasing to fourth here. that? quarter? what noticed drop. potential for back a the of a significant the quarter, give And a missed bounce your for in income and us have I drove income a Can what's as bit leasing color third you joined little

Kathryn Bailey

to balance did And value. fair relates to on accounting, They that went have values that mark to their the sheet to have we purchase mark through Dan, we as accounting whole when year. purchase related books. those we the had Vantage residual transaction Sure, we the to last

would we recorded. that put otherwise that those be we premium had related so, a against And that any realize as to to premium And to have come to gain portfolio. on term,

what you a given on has those see in term. when X basis, significant, it it just X not quarterly choppy is about is amortization been quarter. million, million, that third X to leases prior quarters, come but it So is In million, the that a premium

Daniel Cardenas

good And some the where bit nonperformers, were the front, from did to some credit there. then as up to see on due you quality a give notice color improvement in was that your Can days past XX that coming categorically? us but

Charles W. Sulerzyski

from Yes. small leasing coming that is The majority of the business. ticket

Daniel Cardenas

trends watchlist business? looking the are that How trends? for the are how then And

Charles W. Sulerzyski

in are do it Well, the trends to expect increase. rate, The delinquencies charge-off increasing. we

perfectly with to rates. the going But at We XX% a cycle, not less rate. charge-off had charge-off rates, X% to As Xs like to frankly do yield, X.X% if that getting X.X% charge-off earlier, very we've we're We Obviously, X.X% with and comfortable. a you're creeps get years near comfortable we're stuff that I charge-off Xs, up and X.X% mentioned multiple a ourselves priced or see that. rate. it over not to the

Daniel Cardenas

should of lending the go-forward on those then for about we maybe basis? on XXXX. little you're Are how growing on And guidance front, tapping a your brakes then bit thank for areas thinking you portfolios? And be a the provision in there any the terms that

Charles W. Sulerzyski

How our should we about -- be thinking

Kathryn Bailey

Provision.

Daniel Cardenas

Provision.

Charles W. Sulerzyski

Provision.

Okay. of We've been a never lover hotels.

favorite up run, will tighten and that's that. back lend. competitors we it, flowing The We we're to and not we acquisitive, look cash a and most at space We're that it's have That the said, place bit. if we pick liquidity little somebody because seeing But of built up sponsors part, certainly some think has good room. are benefiting issues. but hotel hotels for having a our pull from for to business. open XX% being try we're We loan-to-deposit, to

hoping we're over that benefits So see of to XXXX. the

Kathryn Bailey

provision, And assume to as it's follow it think is. relates what to we'll safe forecast Yes. I the that

to at we the as of rates on otherwise, coverage likely we'll will the worsens, on ratio. that extent the and be it the be reserving the to kind relates reserves growth you forecast just So building see

Daniel Cardenas

with And reflected then competitors, yields? I that somewhat question, in is last pulling guess, back being well, current

Charles W. Sulerzyski

continue. to yields. will that -- in our than in book will it on think I see ton competitors got first be of pulling of think expect that, that back. more of more more and We yields future tend ton from books current a a quarters business recently, I more reflected don't and we've the X I

Operator

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

Charles W. Sulerzyski

will sorry, archived everybody call release This that for be joining the I'm for your Investor peoplesbancorp.com Yes. at call want the I'm our and time, and of Please remember open our under thank a -- commentary, morning. earnings a call I wrong this you will webcast day. great this our concludes have we Yes, page. and the to in Relationship section. Thank

Operator

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

may You disconnect. now

Peoples Bancorp (PEBO) 24 Oct 232023 Q3 Earnings call transcript