PEBO - Earnings call transcript Q2 2024

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Operator

Good morning, and welcome to the Peoples Bancorp Inc. Conference Call. My name is Cole, and I'll be your conference facilitator. Today's call will cover a discussion of the results of operations for the 3 and 6 months ended June 30, 2024. [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 or future events. on expectations. based are statements management's current These and The fact a are this call, People's number not historical which are Securities the forward-looking in risks uncertainties statements Commission's and filings. in of detailed Exchange statements and involve statements that of call bounds are during believes of knowledge Peoples' reasonable Management operations. made within on assumptions this forward-looking the the their based business and

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

Timothy Switzer

call thank morning, you Good today. everyone, our Cole. you, Thank joining for and

also part This quarter, is conference morning earnings with with filed earnings our an presentation, our release as call and on this we're webcast. posted our X-K we Form of this website which providing

shareholders. linked And for for quarter share another compared the diluted earnings consistent per $X.XX the to pleased were quarter. are quarter, of for We second our results bring $X.XX to

of half compared first for $X.XX the diluted XXXX. XXXX, were EPS $X.XX For to

Some which compared positives compared growth loans, and for quarter, to criticized declined XX%, classified the second included X% the improvements of X% annualized in linked and quarter respectively, the loan to our end. linked quarter

total our $XX deposits deposits grew $XX brokered core quarter, declined for by which While the our million, CDs. million excludes

decline continue brokered Our as generate to deposits. CDs customer we

[ X% value tangible while $XX.XX increased [ book XX, at increase linked [ June ] per quarter Our from book March ] end our $XX.XX from XX. a the $XX.XX at ], grew to value end share to

tangible Our assets basis points tangible equity to to ratio improved XX X.X%.

Our improved linked percentages regulatory ratios the end. compared capital quarter to double-digit by

in our average improvements for last and quarter. was linked to we return X.X%. We for generated assets income, credit insurance decline we excluding the compared a fee-based provision Our annual performance-based second had quarter, on quarter the the in commissions losses our recognized

the diligently downgrades the quarter portfolio not did indicative and of at we that be We loans were worked in downgraded core noted is case. call that quarter as was relates last credit million, quality, the This driven many it on down and were by criticized our and our loans, quarter, million respectively, $XX which to including improvements quarter linked a As in this $XX some to reduction compared classified paydowns we this we that last believe to we end. had shown those time our credits. issues,

We including July, funds have received continue these million. another in loans additional receive and pay $X on to downs

of status to of totaling had from also $X.X one to fair. criticized credits million million upgrade upgrades and $X We two classified watch

quarter end. credit end, for allowance the losses remained X.XX% quarter of at with consistent total Our loans at linked

charge-offs quarter the loan individually credit growth. was for higher driven on net provision and by reserves analyzed Our for losses leases

quarter. rate first leasing net to the compared quarter charge-off annualized basis charge-off XX for for XX our Our contributed XX of the rate increased to points, the indirect basis net and points for our net basis Combined, quarter. of XX second consumer charge-offs the annualized points

contributed We North to continue pre-pandemic levels the we rate. adjust area to on the which continuously our rates to small to acquired verticals of the annualized business. rates similar performance. basis XX are see or elevated appetite the points charge-off our expected net We charge-offs ticket XX see ticket net leases in division, we based leasing evaluate the lending various and These small when Star charge-off in our from

ticket yield For small on leasing to XX%, we the on with and business. our risk-adjusted our very return small the balances continue was our ticket second be leasing quarter, core over satisfied

grown annualized our X Our loans, in have net indirect adding net for charge-off the rate to consumer charge-offs quarter. basis points second

auto national rates. remain a about delinquency in surrender lending charge-offs business. Nonperforming of the weighted our in with seeing used to mostly the net scores When lending, was dollar which We the $X.X with has and in trend of previous higher leasing production practices value our higher increased nonaccrual over due increased disciplined values, assets leading increased. our balances. average spike XXX combined FICO at to optimistic million remain on You're

this and June XX.X%, XX considered of from was XX. improved portion quarter at up delinquency the XX.X% at current Our portfolio our March loan

at confident are our total at our balance portfolio loan our XX. exposure less June concentrations. to than commercial X% We nonowner-occupied With loan space in office of

an to linked compared loan. successfully we quarter classified as exited million office the declined $X exposure end Our

balances living the linked end. were the million, assisted increase a balances. At each million to time, loan and multifamily $XX same hospitality around X.X% of quarter compared Our were total our $XXX facilities our

compared to support these holding linked we loans still loan of of the rental continue Compared million segment have sponsor are underwriting experiencing diligent rents be deals continue average X% growth strong annualized. economic grew to And our in see in on metro this will to multifamily our loans. We average portfolio metrics in and chosen up. with to X.X%. X.X% quarter national total the of our X markets, end, We or $XXX the we and have

while this a industrial million, mostly $XX mentioned million growth But of of meaningful end. Increases our declines $XX compared earlier, contributed portfolio to commercial quarter $XX balances linked million real in finance premium portfolio. estate of the as offset time, comprised loans. real equity our include credits commercial nearly were quarter total X% totaled portion XX% and Our and I were X% our and At of were consumer in same were quarter lines loans quarter variable were which XX% leases which a the we commercial occupied, At total by down construction assets, view and that of loans, of our estate indirect growth as million loans XX% balances. owner of $XX classified estate. driven loans, our end, of contributed loans real criticized credit At higher positive. Consumer loans which part rate end, with loans XX% a paid at of estate of industrial residential were home total X%, the total investment the remainder consumer real loans. of and XX%, fixed total were Commercial finance our premium was of rate. XX% the remaining

We continue real commercial upcoming the to interest rates loans higher conditions actively book, repricing of our estate on market on impact or assess including maturing.

million will our maturing and Katie last to to our only over We are have another performance. ability $XXX of the of now or the portfolio a for loan $XXX during commercial comfortable XXXX with during our XXXX. I repricing million discussion of the financial and repricing turn half call handle

Kathryn Bailey

Thanks, Tyler.

in first while which the X.XX%. reduction to decline mostly amortization accretion quarter. margin expense, interest was Our quarter, which higher X.XX% yield. Nearly our offset net net compared interest interest only was The margin of compared of to during remainder was this quarter, income, quarter income of added compared the compared basis due was lower net points quarter the borrowing points linked the net half incurred higher last basis stable XX costs asset to second earning XX the to to

half grew our XX%, XXXX, declined margin basis income interest our For net while to net points of the interest X.XX%. XX first

X.XX% costs than interest Our XXXX compared for months improved XX for X.XX% while funding of net earning first basis income, expense XXXX Accretion asset for the XX XXXX. offset yields points net half for the to of to first basis margin X XXXX, improvement. compared added more the higher points amortization to of to

our income. to on fee-based Moving

performance-based performance-based annual year. commission the of Excluding income first first fee-based to each quarter. commission of quarter the million linked the $X.X in insurance we grew We during compared the recognize our insurance received quarter, typically

second income in and insurance trust and income life offset for investment growth the bank-owned declines banking quarter, in electronic and Additionally, lease income.

XX%, occurred For grew the half income to with all first in lines, April on the our that primarily due increases XXXX. merger fee-based XXXX, of Limestone ] XX, [

quarter noninterest it true-up relatively relates of XXXX flat to As they a expenses. impacted expense other prior period first by the our was as of noninterest our to corporate onetime compared expenses, were

was X% For during additional the as noninterest by footprint lower expenses XXXX. acquisition-related half operating was expense of higher the from costs Limestone up first offset partially from XXXX,

our and ratio XX.X%. efficiency reported for our both expenses ratio quarter, noncore was second the For efficiency adjusted

the linked increased adjusted Our quarter quarter. to fee-based and was compared the reported ratio related and to lower linked efficiency to compared income

For the the ratio first from ratio was adjusted due XXXX to the XXXX. first efficiency of XXXX, for X an noninterest reported The higher was XX.X%, months XX.X%, a of increase decline half efficiency XXXX expenses. from

the Moving on to balance sheet.

to assets at ratio increased XX%. portfolio securities Our XX to XX% June comprise investment continued of while loan-to-deposit total our

of gain up our brokered investment to end, products, CDs a agreements third which deposit which the we was deposits seasonal cash some year. some and insured us declines pledged during and total to by deposits, and with additional from are in our in quarters our were previously customers, each quarter, free moving mostly governmental the due During which allowed deposits liquidity perspective, able declined of sweep typically $XX reductions first the securities. From quarter governmental higher to million linked repurchase

were the $XX brokered up Excluding deposits quarter million to our end. CDs, compared linked

CDs million, CDs reduce retail to $XX brokered able were million. we $XXX by Our while grew our

to For quarter, X points linked only deposit basis compared increased by the costs quarter. our second the

retail and life a X for remaining months CD average X% entire relatively Our term retail our CD XX. have over a portfolio short at had CD of June an promotions been

as flat the deposits at remained Our deposits to compared at a and linked XX. total end XX% June percent were quarter of demand

our and in was retail At which noninterest-bearing our balances. deposits deposit were XX% XX% commercial in businesses, end, included deposit total balances, While deposit of composition deposits. XX% quarter small

while customer $XX,XXX deposit at quarter end, retail $X,XXX. median our was average relationship Our nearly was

Moving on position. capital our to

common improved X earnings ratio quarter end, was capital the quarter to from linked compared capital Our ratios equity and dividends. outpacing our Tier benefited XX.X%. At

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

compared X.X% X.X% ratio to equity Our leverage our end. tangible X.X% ratio assets quarter was at to tangible and improved to

yield to shares part dividend relates capital has a of current it usage, repurchase an provide As capital this which we our did do deployment, quarter. our We X.XX%. attractive of as not

at Our payout second stood ratio dividend XX.X% quarter. the for

I to comments. his Tyler closing will turn for call Finally, the over

Tyler Wilcox

you, Katie. Thank

making new the and opportunities it referrals, easier business, During client made as out by enhancing improving with our of of and in ability a clients. technology to customer between that us rolled information relationship strides we lines serve integrates connect for first system we to our half XXXX, our management execute our

We software implementation implemented also replace with to groups new and of more to continue products a our we insurance Microsoft our began look system systems. as legacy functionality utilizing for

We way are XXXX. new will business our origination be also in to implementing place that starting in well system a on loan

software like We any I mentioned, CrowdStrike that satisfaction outage employee week would systems we impact our upgrades, on and workplace. impact this had point. has importance last nominal been also and As note place from high on our to the at resolved

We recognized in our company's being culture that the is are proud marketplace.

first the U.S. of recognized were by half we During XXXX,

World in Report workplaces. work by one for Newsweek company and to as greatest of & America's a News best as banking

full between X% growth income quarterly second to margin of of changes currently remainder look income merger, interest the net impact will We short-term that net rate we of interest to XXXX. believe XXXX. year half the fee-based assuming expect continue between there and to As no the interest significant our XXXX, the benefit X.X% X.X%, X% Limestone and to to compared from we in we be be are our anticipate

classified and our unchanged, noted noninterest guidance of million at quarters anticipated million and previous third the we adjustment in to received some fourth for loan our $XX X% is quarterly our our loan of result guidance X% remains criticized XXXX. Our XXXX compared paydowns total forecast expense lowering $XX to growth slight of We're to which and a of the offset will loans and X%. expected to production. partly on This paydowns estimate X% between

We trends from for quarters of losses fourth XXXX. our the XX net anticipate we reduction to the during due expected remainder quarters to around some and quality of credit third net recognized first basis provision for year with two charge-off information, the expect of the year. leasing full in primarily ticket business and XX points, charge-off driven relatively a consistent trends. Based the be current also recent leasing and on amounts credit small charge-offs indirect to expect rate We for our by

the Once offerings, our to performance to grow. This technology while our shareholders are commentary, for aligning open concludes our me and product questions. consistent hands again, Bailey, solid, Thank of will and session this for infrastructure, our also into improving the you. turn is now we Tyler call our bring Wilcox, We Chief Katie is pleased business Financial Q&A will our back and the facilitator. call the Officer. I joining call

Operator

our Raymond Tamayo James. And question from Daniel with Instructions] first [Operator will today come

Daniel Tamayo

of the just start appreciate you we year? -- in the deposit quarter provided. about else, competition, get magnitude of the third benefit given half margin guidance Maybe the in on just I the know how But detail the then everything you compression a just you restructuring margin. for if that little back wondering thinking the more could you're and

Kathryn Bailey

I'm you not talking there. referenced sure way. restructuring We quarter investment meaningful portfolio in our quarter. reposition your reference third quarter -- a or second really -- specifically what Danny, in a you're the did during any the we're the not getting So first about

So what I giving we've think that been the consistent us see year. guidance give all with is you largely

compression from X to latter come for thereafter XX the get I accretion, margin, the a quarter continued maybe accretion the is in to of income but points us more benefit second X quarter, basis year half compression continue each Again, we to points printed to as XX. in trail basis be off. expect XX we accretion continues slight basis of down of of the that will the think in there points In benefit. will XX function to

we I as think through the proceed So what we year. expect that's

I we largely be accretion is ex quarter. to think were the stable core margin going to the where for second

Daniel Tamayo

it. Got

Yes. Okay.

-- misspeak. but apologies restructuring, of. And leasing a was accretion on My the ticket small what business. then just a the follow-up just that the thinking yes, guess on I I is Sorry, was

those could of the the mean, the drivers if lot guess that great. classifieds, the and continued would classifieds I uptick a the come about prepared seeing saw you You it talked a loss elevated talk of related charge-offs just remarks are But net an about bit curious kind in to also in you just in leasing be release. if I down. lower you the business, little but rates.

Tyler Wilcox

we about to on the I I Danny. tell Sure, was a we separate and optimistic a and quarter, those talked it bit. about guess there's payoffs Thanks. as last I'll reiterated upgrades there. The out commercial, talked think Very story kind decline again by as of great core and and large.

balance that a we away and respect into mix -- that the with We a business underweight core I'm estate. And that to C&I. in nice book as of commercial fact on book first delinquency the are industry well that commercial well real CRE declined some is has core continue peers to book and this is core from and work that so as the book, Limestone just the picked proud up to think just that there the we year, of relatively I book. and saw during positives as of half word built we've the from the

So XX% the and the industrial commercial estate side. about about and production was commercial the paydowns on XX% just in were real the

there's natural rebalancing on So a kind there. of going

as X the represents loan portfolio portfolios, very tale So it's but strong. percent far which XX-plus of core, is bit the as of a our of -- a

business of X of the segments. ticket breweries, in than drivers, primary of kind restaurants, higher-risk leasing, two in On inherent is years, transportation. the the nature hospitality, less that small It's the start-ups

charge-offs. bought saw XXXX, about charge-offs. history that it, prior were charge-offs the historical bought the XX-year a to the said we All when we equipment. and on that And of about of XXXX we pricing for when business we were. where during X.X% records X% those We based of And less mission-critical we than

to side, received kind leads But that to return those And business. so with the be a continue risk-adjusted risk pricing the of And benefit we've higher return us are we're we I with the of think pricing increase satisfied an to there. that from normalization. and areas seeing higher seeing of the

Operator

Group. question our Nosal Brendan come will Hovde And with from next

Brendan Nosal

there's way said like rate today's -- curious normalized back year? And a you you and X.X%. that into for I as the leasing to guess, go the charge-off What you that to charge-offs piece. it But the I half get for is of to then what view do just circle still embedding there, out? so feels you overall guide these like the view you are guidance wanted to versus back normalization laid the how X.X%

Tyler Wilcox

-- some a is Well, I be we standpoint. I that small specifically consistent ticked specifically. leases, with tightening relatively of done as delinquency charge-off as the We've think ticket there. guide those as standpoint up. that in if is the But from your far a quarter with fourth I the There obviously, be portfolio the referenced, third and know portfolio don't answered the from to going has outlook, will consistent leasing charge-off question.

Brendan Nosal

Yes, the yes, one some [indiscernible] whether environment pivoting. expecting have that firmed past Can that environment overall as more as from in helpful. you're few color they the just over on M&A have provide multiples change you up me that's Maybe and weeks? now much any

Tyler Wilcox

are options are those think which from as of not see, part there teams to continuing and there future, lot say -- bullets the election. I that is lot are and would are But lot of I with of bit conversations. continue conversations, all. But to we their rates. going see, I'm a a have, of happens suggesting of is magic of what wait with are those there we a what be at see either and considering have we're I perspective. happens what and think I Sure. discussion playing on an a wait from a and M&A boards there see little that management Wait banks

expect than activity would out as in long M&A year. I have focused next there that's we've the what time more hopefully the we future. about for opportunities see But as been ball a that conversations we And think crystal the far So we'll in promising goes. I'm ourselves more that this bear for it's year. my having year on coming will fruit

Operator

And our comes from Stephens. Terry with McEvoy next question

Terence McEvoy

C&I the kind both average and of declined sheet, half of loan portfolio. your Just average and the at quarter-over-quarter, it's CRE looking balance yields

do within year, the about you or yields talk half of loan for trending? the the decline quarter-over-quarter and where see margin So back outlook those portfolios this

Kathryn Bailey

think That's quarter-over-quarter, where portfolios accretion the marks the acquired large stated. the I when limestone diminished as you're predominantly on Yes, recently. we've book those seeing come we most

So continue again, X we'll accretion, slight might to quarter. quarter-to-quarter, go X to see I in think that compression basis I previously think the points down in I said

So pay again, continues less as that that's to see we off, book pay there. why down, accretion

So relatively caveat it go will I slightly. will that with stable be think the down accretion

Terence McEvoy

some Perfect. gains was That's investments. is then investments. but what investments, I technology outlook? And you that assumed And about of efficiency some to wanted because Tyler, infrastructure of you foresee about of built into your ask. talk talked How that kind expense those the it maybe

Tyler Wilcox

Terry. guide, expense baked to I talked for in. the a would now say we've that Sure. The about how Thanks, is with respect -- quarters expense few

this broad, we're it's us be software which for we systems standpoint, implemented of some forward And began always, for been my third-party businesses. a push pleased go strengths, helped them that giving is that us It's eliminating into pay guide now to system of because businesses a the we has We've efficiency the the revenue of primary of businesses opportunities last the to us will end internal unified been It's into system it management few that year, This system much of us been some into and has times is that it for I our very should minutes, allowed down processes year. From year the on operational a and remainder for will one our allow are way efficiency our relatively a early hours client unified efficient processes efficiency our given always So between that couple have multiple aspects. diversified expectation kind kind next getting integrated group single relationship just and to implemented an have year and integrating us customer work of the goals our from mine results a even in system. On pieces to the consistent data service with. cut of clients day. of at certain had in our on. and has additional some a a hopefully forward, of those more think to improve together. is

pretty about it. expectation that's doing system, and change we're an investment represents standpoint. in So fundamental what a a kind on But operational we're of from that excited long-term the fundamental it and

Terence McEvoy

press the what's $X.X was one. small one release, Maybe of in The tax for rate outlook tax that year? in tax million the half -- the back the benefit cited the

Kathryn Bailey

I rate consistent think tax in back the be quarter. first with the the will half

I something can think half for I amount 'XX. [ get that if think back you you'd expectation adjust the the the QX -- XX.X% think quoted, we ]. of the I our And million for XX%, be closer $X.X QX to

Operator

question And Tim with come our will next Switzer KBW. from

Timothy Switzer

on that you're with have seeing the how environment quick about a the could now? the maybe macro rates in credit that leasing charge-offs. I interest you in of maybe improve trends lower commentary the talk change right Could along around sector a some follow-up

Tyler Wilcox

Tim. Thanks, Yes.

are end up average, but when go risk the outlet at about the certainly at the think the and the expectation think rates And higher down, going day, the a businesses. there historically help pre-pandemic again, in borrowers X.X%. of And because outlook the of that the you been help has would in that to they look the seeing industries. decline these are interest we're average some pressure and with I of era I though, is this alleviate the it some would

banking the outside they're so And services. traditional going

fall, are be But So interest -- to find as they debt, just relief rate, elsewhere. rates those loans fixed and clear. additional may

duration there's generally. And on as be well, again, will sea but a it it -- think can't those short don't I those hurt. meaningful So leases change

burn than the So portfolio as more they quickly average to well. tend off

Timothy Switzer

always had good And have Okay. of That's you percentage revenue helpful. of peers. noninterest income, higher most a amount than guys

Is come businesses target time, due it's there of specific fee percent you like there like to any a little to up to? back partially as more And range you'd a like acquisition. scale get income a you'd in? down So have to bring a little that a are of bit bit total? over More

Tyler Wilcox

Yes. Historically, The revenue continued we grow that XX%. were continue And continued this -- say large, love it be that. love up perspective, somewhere to I We back some the area, and continue that grown we've specialty trend. We And would insurance by correct. in to both then do I'll acquisitions of smaller the there. to you're and hasn't bank From acquisitions, to we've and the businesses. and have in the fee that bank. finance way. should $XX an our in businesses of some It And into future. pace the year be done some just around million at so. we'll same acquisitions annually do

think a have for we insurance a are strategy. Trust exit owners investments home good for for that, well. We as an large looking and and appetite who

management. assets in billion $X.X have We under

organically business. We business grow of and meaningfully and to that in lines of look at acquisitions, to both within Expanded for pace. have of business, some business we'll that a continue that the business continued nice sized more books

exact an you goal. but didn't So my I give more be would target,

Operator

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

Manuel Navas

going that you metrics. cycle, a leasing, risk-adjusted are return trends you still ticket of rise charge-offs extent cyclical declines kind there see Could little higher net the see on small balanced to pull there? -- what and get you'll on this back Is normal to when you'll leasing, bit wondering the that through just

movements. clarify Just trying to those

Tyler Wilcox

this first, few when we perspective. from This a credit charge-off so were at business Manuel. would were. it, our I from low It's Yes. years Thanks, now. a we've we mentioned, had of I point -- is we increase bought kind as for first say where a And

balances the not we're we'll -- panicking. decline believe see to in continues making the that we're don't a We're small to business. But ticket core. certainly in in leasing. verticals be adjustments I within production So not the There

there that would lot be good and So environment, grow and in look business. were our and But those what's have we're a in we rising a to take to expectation nominal, ability -- if it make and at decline, confidence an a adjustments. of have continue required performing to well very a

Manuel Navas

that right Or XXX points middle So be if there feeling back would don't basis be of rates year, would of in verticals? you'd still some be down I you came next these a know, cautious?

Tyler Wilcox

-- -- that I $XXX $XX from think the we'll grown on business million sheet million. could over to balance we've

we've the nationwide capabilities. expanded expanded reach. the it, As grown we've We've

the at so a and over the going X with business. From pretax because we're it even so for it's on in very all off we profitable higher priced rates And standpoint, us, this rate. a and again, ROA it's loss

our actively manage it's to business the Again, we're just a -- perspective. So notwithstanding to because increase the for invest it's we total profitable. look steepness of and continue over think it's very And long to viable continue great to into it trying the we grow very portfolio and the term kind loan of it the of and recently. X.X%

a a the So but the impact, of ability very it's small pie. nice make it portion has to

Manuel Navas

Can kind great on deposit That's react I'm shifting discuss costs, where to could how and point. to a potentially they NIM. you cut? deposit NIM of over would thoughts the peak? rate of -- whole they and And costs kind

Kathryn Bailey

Yes.

to you prior saw saw than portfolio continued slower in quarter deposit increase mix cost, of the as compared I we we a our what bit little last deposit had extent the and think reshifting some a quarter. quarter the this So to

are I that close on to think peak rate. we the

the the being transpire We but projected I this think I to extent are continuing happen slowing and to retail growth year see are think benefit. this it's they see we'll a quarter, little to bit as see more continuing mix some CDs, shift. to a bit. And rates in cuts later We're

used short-term ], XXX X-month a of mentioned, product life average we promotional a [ remaining. a had we've As kind that

we I take can So funding of rate think the on pretty order cost benefit short the cuts side. in

Manuel Navas

talk you balancing. can about And

to Can Will side. because is just made the securities flexibility your less adds? you down of securities of movements that on You down some that now Or just the of comment book of see more pay deposit pledged higher to the cost kind we of getting about kind the balance broker that pay talk about on side? that based that talk you're other areas runoff liability comment.

Kathryn Bailey

Yes.

of saw was you kind cash a that as we securities you the had QX which and need of saw be didn't equivalents was could immediate kind and for quarter readily what cash quickly relative sold equivalents that cash in liquidity cash So sheet, to we this in hold much because on had unpledged quarter an to balance increase have cash to our reduction the second have quarter in available liquidity. last because if

was the trying quarter needed. trade-off they securities to we that able have in we to cash equivalents we just that guidance per in the cash have available Not are needed, was when describe for unpledged but were or because if liquidity think reduction policies, So some our were internally. and that there. The we

Manuel Navas

Cash Thank it. Got clarifying and for cash me. you for equivalents.

Kathryn Bailey

Yes.

Manuel Navas

little little range mean run at level probably And a balances going securities a you'll or similar probably that in forward, kind level? does of where tighter, bit a current similar the that is cash stay

Kathryn Bailey

right. that's think I Yes,

between said we've XX% XX%. time, We're be sitting over investment and currently to we portfolio something at think XX%. like I our

actively it's the portfolio I investment So we're like. in the -- rates And again, not range. would and say the in much buying portfolio given

So it be to I'd relatively expect stable.

Operator

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

Tyler Wilcox

conference joining call, peoplesbancorp.com call our and call Please great release for your this of you including want that call section. time, archived this at earnings morning. and Relations day. our -- presentation, a will be thank earnings the everyone I for webcast under a remember to have earnings Yes. Thank Investor our

Operator

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

You this now lines at your time. may disconnect

Peoples Bancorp (PEBO) 23 Jul 242024 Q2 Earnings call transcript