Peoples Bancorp Inc. Announces Second Quarter 2021 Results
Peoples Bancorp Inc. reported a net income of $10.1 million for Q2 2021, translating to $0.51 per diluted common share. This marks a decrease from $0.79 in Q1 2021 but an increase from $0.23 in Q2 2020. For the first half of 2021, net income reached $25.6 million or $1.31 per share, compared to $4.0 million in the same period last year. The merger with Premier Financial Bancorp is expected to close in Q3 2021, valued at approximately $292.3 million. Furthermore, the company recognized non-core expenses of $2.5 million due to acquisitions and COVID-19-related costs.
- Net income for Q2 2021 increased to $10.1 million from $4.0 million in Q2 2020.
- Successful integration of North Star Leasing is contributing positively to revenue.
- The upcoming merger with Premier Financial Bancorp is anticipated to enhance market presence.
- Earnings per diluted common share dropped from $0.79 in Q1 2021 to $0.51.
- Non-core expenses of $2.5 million were recorded due to acquisitions and COVID-19 impacts.
- Total loan balances decreased by $37.5 million due to PPP forgiveness.
MARIETTA, Ohio, July 20, 2021 /PRNewswire/ -- Peoples Bancorp Inc. ("Peoples") (Nasdaq: PEBO) today announced results for the quarter and six months ended June 30, 2021. Peoples reported net income of
Non-core items, and the related tax effect of each, contained in net income included gains and losses on investment securities, and asset disposals and other transactions, acquisition-related costs, pension settlement charges, severance expenses, COVID-19-related expenses and a contribution to Peoples Bank Foundation, Inc. Non-core items negatively impacted earnings per diluted common share by
"During the quarter we have several accomplishments that we are proud of. We integrated North Star Leasing into our operations," said Chuck Sulerzyski, President and Chief Executive Officer. "This additional line of business is growing as we anticipated, which is reflected in our results for the quarter. We completed the acquisition of Justice and Stamper Insurance Agency in Pikeville, Kentucky in May. We also were very honored to be recognized by Forbes magazine as the second Best-in-State Bank both in Ohio and West Virginia, one of only sixteen banks across the country to be recognized in two or more states, along with earning the top workplace designation from Cleveland.com and Cincinnati.com in Ohio. We have spent a considerable amount of time planning with our partners at Premier Financial Bancorp, Inc. and still anticipate on closing later in the third quarter."
Acquisition Announcements:
On March 29, 2021, Peoples and Premier Financial Bancorp, Inc. ("Premier") jointly announced the signing of a definitive Agreement and Plan of Merger dated March 26, 2021 (the "Merger Agreement") pursuant to which Peoples will acquire, in an all-stock merger, Premier, a bank holding company headquartered in Huntington, West Virginia, and the parent company of Premier Bank, Inc. ("Premier Bank") and Citizens Deposit Bank and Trust, Inc. ("Citizens"). Under the terms and subject to the conditions of the Merger Agreement, Premier will merge with and into Peoples (the "Merger"), and Premier Bank and Citizens will subsequently merge with and into Peoples' wholly-owned subsidiary, Peoples Bank, in a transaction valued at approximately
COVID-19:
The income statement and balance sheet results as of and for the three and six months ended June 30, 2021 continued to be affected by ongoing developments related to COVID-19, the reactions of government authorities, individuals and businesses, and the impact on the economy, specifically in Peoples' market area. Many of the limitations imposed by state and local governments were largely removed by the end of the second quarter of 2021; however, the impact caused by the previous closures continued to significantly impact the economy during the second quarter of 2021. The Board of Governors of the Federal Reserve System ("Federal Reserve Board") maintained the Federal Funds interest rate effective target range at
The federal government's passage of the Coronavirus Aid, Relief, and Economic Security ("CARES") Act resulted in the creation of the Paycheck Protection Program ("PPP") targeted to provide small businesses with financial support to cover payroll and certain other specific types of expenses for a specified period of time. Loans made under the PPP are fully guaranteed by the SBA and, therefore, carry no related allowance for credit losses. These loans earn
Interest income was negatively impacted by the reduction in interest rates by the Federal Reserve Board in 2020 and the low interest rates were maintained during the first six months of 2021. Additionally, variable rate commercial loans that are subject to changes in the LIBOR and the prime rate were adjusted downward in 2020 and remained low in the first six months of 2021, which caused interest income and net interest margin to remain at low levels. The addition of North Star Leasing ("NSL") has offset this impact by adding 29 basis points to the net interest margin during the quarter. The impact of the prepayment speed activity within Peoples' investment securities portfolio was reduced during the second quarter of 2021 due to efforts previously undertaken to reposition the portfolio.
Unemployment benefits that included a federal subsidy of
Peoples incurred non-core non-interest expenses as a result of COVID-19. COVID-19-related expenses recognized during the second and first quarters of 2021 were
North Star Leasing:
Peoples Bank entered into an Asset Purchase Agreement, dated March 24, 2021 (the "Asset Purchase Agreement"), with NS Leasing, LLC, which is headquartered in Burlington, Vermont, and does business as "North Star Leasing". The transaction closed after the end of business on March 31, 2021 and Peoples Bank began operating the acquired business as a division of Peoples Bank on April 1, 2021. Peoples Bank acquired assets comprising NSL's equipment finance business and assumed from NSL certain specified liabilities for total consideration of
Peoples Premium Finance:
Effective after the close of business on June 30, 2020, Peoples closed on the business combination under which Peoples Bank acquired the operations and assets of Triumph Premium Finance ("TPF"), a division of TBK Bank, SSB. Based in Kansas City, Missouri, the division operating as Peoples Premium Finance provides insurance premium financing loans for commercial customers to purchase property and casualty insurance products through Peoples Premium Finance's growing network of independent insurance agency partners nationwide. Peoples Bank acquired
Statement of Operations Highlights:
- Net interest income increased
$4.1 million , or11% , compared to the linked quarter and increased$4.8 million , or14% , compared to the second quarter of 2020. - Net interest margin increased 19 basis points to
3.45% for the second quarter of 2021, compared to3.26% for the linked quarter and increased 26 basis points compared to3.19% for the second quarter of 2020. The increase in net interest margin compared to the linked quarter was driven by the addition of NSL. - The increase in net interest income for the second quarter of 2021, compared to the second quarter of 2020, reflected the impact of the additional interest income from NSL, PPP loans, premium finance loans and investment securities coupled with lower funding costs.
- Peoples recorded a provision for credit losses of
$3.1 million for the second quarter of 2021, compared to a recovery of$4.7 million for the first quarter of 2021, and a provision for credit losses of$11.8 million for the second quarter of 2020. - The provision for credit losses for the second quarter was attributable to the day-one impact of
$3.3 million for the leases acquired from NSL. - Net charge-offs were
$0.8 million , or0.09% of average total loans annualized, for the second quarter of 2021. - Total non-interest income, excluding net gains and losses, decreased
$1.1 million , or6% , compared to the linked quarter, and increased$1.2 million , or8% , compared to the second quarter of 2020. - The decrease in non-interest income, excluding gains and losses, compared to the first quarter of 2021 was largely driven by lower insurance income. Insurance income recognized in the first quarter of 2021 included
$2.0 million in annual performance-based insurance commissions that are recognized in the first quarter of each year. - Total non-interest income, excluding net gains and losses, for the second quarter of 2021 was
29% of total revenue. - Total non-interest expense increased
$1.9 million , or5% , compared to the linked quarter and$8.1 million , or25% , compared to the second quarter of 2020. - The increase in total non-interest expense for the second quarter of 2021 was primarily due to the acquisition of NSL, which added
$1.1 million in salaries and employee benefit costs and$695,000 in intangible asset amortization. - The second quarter of 2021 included non-core expenses of
$2.5 million , which included$2.3 million of acquisition-related expenses and$210,000 of expenses related to COVID-19. The linked quarter had$2.8 million of non-core expenses and the second quarter of 2020 had$1.2 million . - For the second quarter of 2021, the efficiency ratio was
68.6% . When adjusted for non-core items, the efficiency ratio was64.2% for second quarter of 2021.
Balance Sheet Highlights:
- Period-end total loan balances were down
$37.5 million compared to March 31, 2021. - The decrease in period-end loan balances was the result of PPP forgiveness during the second quarter of
$186.3 million . - Excluding PPP loans and leases acquired from NSL, loan growth for the quarter was
$29.2 million , or4% annualized. - Average loan balances increased for the quarter, compared to the linked quarter, and were driven by a
$86.5 million increase in the average balances of leases, offset by a$58.1 million reduction in average PPP loans. - Asset quality metrics were generally stable during the quarter.
- Annualized net charge-offs for the quarter remained low at
0.09% of average loans. - The provision for credit losses recorded during the quarter was driven by the day-one impact to the allowance for credit losses required as a result of the NSL acquisition.
- Delinquency trends improved as loans considered current comprised
99.1% of the loan portfolio at June 30, 2021, compared to98.8% at March 31, 2021. - Nonperforming assets increased
$1.1 million compared to March 31, 2021. The increase was primarily related to nonperforming leases acquired from NSL. - Criticized loans decreased
$2.6 million during the second quarter of 2021. The decrease was largely the result of pay-offs of several smaller commercial loans. - Classified loans decreased
$6.9 million during the second quarter of 2021. The decrease was driven by the upgrade of one commercial and industrial relationship and the pay-off of several smaller commercial loans. - Period-end total deposit balances at June 30, 2021 decreased
$71.6 million , or2% , compared to March 31, 2021. - The decrease in total deposits compared to March 31, 2021 was driven primarily by a
$38.7 million reduction in money market deposits, a$25.0 million decrease in non-interest bearing deposits and a$17.1 million decline in certificates of deposit. - Total demand deposit balances were
45% of total deposit balances at June 30, 2021 and at March 31, 2021.
Net Interest Income:
Net interest income was
Net interest income for the second quarter of 2021 increased
Accretion income, net of amortization expense, from acquisitions was
For the first six months of 2021, net interest income increased
Accretion income, net of amortization expense, from acquisitions was
Provision for (Recovery of) Credit Losses:
The provision for credit losses was
Net Gains and Losses:
Net gains and losses include gains and losses on investment securities, asset disposals and other transactions, which are included in total non-interest income on the Consolidated Statements of Operations. Net losses realized during the second quarter of 2021 were
For the first six months of 2021, net losses were
Total Non-interest Income, Excluding Net Gains and Losses:
Total non-interest income, excluding net gains and losses, for the second quarter of 2021 was down
Compared to the second quarter of 2020, non-interest income, excluding net gains and losses, was up
For the first six months of 2021, total non-interest income, excluding net gains and losses, increased
Total Non-interest Expense:
Total non-interest expense was up
Compared to the second quarter of 2020, total non-interest expense increased
For the six months ended June 30, 2021, total non-interest expense increased
The efficiency ratio for the second quarter of 2021 was
Income Tax Expense:
Peoples recorded income tax expense of
Loans:
Period-end total loan balances at June 30, 2021 decreased
Period-end total loan balances decreased
Period-end total loan balances increased
Quarterly average loan balances increased
Compared to the second quarter of 2020, quarterly average loan balances increased
For the first six months of 2021, average loan balances grew
Asset Quality:
Asset quality metrics remained stable during the quarter. Total nonperforming assets increased
Criticized loans, which are those categorized as special mention, substandard or doubtful, decreased
Annualized net charge-offs were
At June 30, 2021, the allowance for credit losses was
Deposits:
As of June 30, 2021, period-end deposit balances were down
Period-end deposit balances grew
Period-end deposit balances grew
Average deposit balances during the second quarter of 2021 increased
Stockholders' Equity:
Total stockholders' equity at June 30, 2021 increased by
Total stockholders' equity at June 30, 2021 increased
Total stockholders' equity at June 30, 2021 increased
At June 30, 2021, the tier 1 risk-based capital ratio was
Book value per common share and tangible book value per common share, which excludes goodwill and other intangible assets, were
The ratio of total stockholders' equity to total assets was
The ratio of total stockholders' equity to total assets decreased 54 basis points compared to December 31, 2020, because assets grew faster than stockholders' equity due to the acquisition of NSL. The tangible equity to tangible assets ratio decreased 104 basis points compared to December 31, 2020.
The ratio of total stockholders' equity to total assets increased 13 basis points compared to June 30, 2020. The ratio of tangible equity to tangible assets decreased 65 basis points compared to June 30, 2020, because assets grew faster than stockholders' equity which was the result of the NSL and premium finance acquisitions.
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Peoples Bancorp Inc. ("Peoples", Nasdaq: PEBO) is a diversified financial services holding company that makes available a complete line of banking, trust and investment, insurance, premium financing and equipment leasing solutions through its subsidiaries. Peoples has been headquartered in Marietta, Ohio since 1902 and has an established heritage of financial stability, growth and community impact. Peoples had
Conference Call to Discuss Earnings:
Peoples will conduct a facilitated conference call to discuss second quarter 2021 results of operations on July 20, 2021 at 11:00 a.m., Eastern Daylight Time, with members of Peoples' executive management participating. Analysts, media and individual investors are invited to participate in the conference call by calling (866) 890-9285. A simultaneous webcast of the conference call audio will be available online via the "Investor Relations" section of Peoples' website, www.peoplesbancorp.com. Participants are encouraged to call or sign in at least 15 minutes prior to the scheduled conference call time to ensure participation and, if required, to download and install the necessary software. A replay of the call will be available on Peoples' website in the "Investor Relations" section for one year.
Use of Non-US GAAP Financial Measures:
This news release contains financial information and performance measures determined by methods other than in accordance with accounting principles generally accepted in the United States of America ("US GAAP"). Management uses these "non-US GAAP" financial measures in its analysis of Peoples' performance and the efficiency of its operations. Management believes that these non-US GAAP financial measures provide a greater understanding of ongoing operations and enhance comparability of results with prior periods and peers. These disclosures should not be viewed as substitutes for financial measures determined in accordance with US GAAP, nor are they necessarily comparable to non-US GAAP performance measures that may be presented by other companies. Below is a listing of the non-US GAAP financial measures used in this news release:
- Core non-interest expense is non-US GAAP since it excludes the impact of acquisition-related expenses, pension settlement charges, severance expenses, the contribution to Peoples Bank Foundation, Inc. and COVID-19-related expenses.
- Efficiency ratio is calculated as total non-interest expense (less amortization of other intangible assets) as a percentage of fully tax-equivalent net interest income plus total non-interest income, excluding net gains and losses. This ratio is non-US GAAP since it excludes amortization of other intangible assets and all gains and losses included in earnings, and uses fully tax-equivalent net interest income.
- Efficiency ratio adjusted for non-core items is calculated as core non-interest expense (less amortization of other intangible assets) as a percentage of fully tax-equivalent net interest income plus total non-interest income, excluding net gains and losses. This ratio is non-US GAAP since it excludes the impact of acquisition-related expenses, pension settlement charges, severance expenses, COVID-19-related expenses, the contribution to Peoples Bank Foundation, Inc., the amortization of other intangible assets and all gains and losses included in earnings, and uses fully tax-equivalent net interest income.
- Tangible assets, tangible equity, tangible equity to tangible assets ratio and tangible book value per common share measures are non-US GAAP since they exclude the impact of goodwill and other intangible assets acquired through acquisitions on both total stockholders' equity and total assets.
- Total non-interest income, excluding net gains and losses, is a non-US GAAP measure since it excludes all gains and losses included in earnings.
- Pre-provision net revenue is defined as net interest income plus total non-interest income, excluding net gains and losses, minus total non-interest expense. This measure is non-US GAAP since it excludes the provision for (recovery of) credit losses and all gains and losses included in net income.
- Return on average assets adjusted for non-core items is calculated as annualized net income (less the after-tax impact of all gains and losses, acquisition-related costs, pension settlement charges, severance expenses, the contribution to Peoples Bank Foundation Inc. and COVID-19-related expenses) divided by average assets. This measure is non-US GAAP since it excludes the after-tax impact of all gains and losses, acquisition-related costs, pension settlement charges, severance expenses, the contribution to Peoples Bank Foundation, Inc. and COVID-19-related expenses.
- Return on average tangible equity is calculated as annualized net income (less after-tax impact of amortization of other intangible assets) divided by average tangible equity. This measure is non-US GAAP since it excludes the after-tax impact of amortization of other intangible assets from net income and the impact of average goodwill and other average intangible assets acquired through acquisitions on average stockholders' equity.
A reconciliation of these non-US GAAP financial measures to the most directly comparable US GAAP financial measures is included at the end of this news release under the caption of "Non-US GAAP Financial Measures (Unaudited)."
Safe Harbor Statement:
Certain statements made in this news release regarding Peoples' financial condition, results of operations, plans, objectives, future performance and business, are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. These forward-looking statements are identified by the fact they are not historical facts and include words such as "anticipate," "estimate," "may," "feel," "expect," "believe," "plan," "will," "will likely," "would," "should," "could," "project," "goal," "target," "potential," "seek," "intend," and similar expressions.
These forward-looking statements reflect management's current expectations based on all information available to management and its knowledge of Peoples' business and operations. Additionally, Peoples' financial condition, results of operations, plans, objectives, future performance and business are subject to risks and uncertainties that may cause actual results to differ materially. These factors include, but are not limited to:
(1) | the ever-changing effects of the COVID-19 pandemic - the duration, extent and severity of which are impossible to predict, including the possibility of further resurgence in the spread of COVID-19 - on economies (local, national and international) and markets, and on our customers, counterparties, employees and third-party service providers, as well as the effects of various responses of governmental and nongovernmental authorities to the COVID-19 pandemic, including public health actions directed toward the containment of the COVID-19 pandemic (such as quarantines, shut downs and other restrictions on travel and commercial, social and other activities), the development, availability and effectiveness of vaccines, and the implementation of fiscal stimulus packages, which could adversely impact sales volumes, add volatility to the global stock markets, and increase loan delinquencies and defaults; |
(2) | changes in the interest rate environment due to economic conditions related to the COVID-19 pandemic or other factors and/or the fiscal and monetary policy measures undertaken by the U.S. government and the Board of Governors of the Federal Reserve System (the "Federal Reserve Board") in response to such economic conditions, which may adversely impact interest rates, the interest rate yield curve, interest margins, loan demand and interest rate sensitivity; |
(3) | the success, impact, and timing of the implementation of Peoples' business strategies and Peoples' ability to manage strategic initiatives, including the completion and successful integration of planned acquisitions, including the pending merger with Premier and the recently-completed acquisition of NSL, expansion of commercial and consumer lending activities, in light of the continuing impact of the COVID-19 pandemic on customers' operations and financial condition; |
(4) | Peoples' ability to obtain all remaining governmental approvals of the proposed merger of Peoples with Premier on the proposed terms and schedule, and approval of the merger and adoption of the merger agreement by shareholders of Peoples may be unsuccessful; |
(5) | competitive pressures among financial institutions, or from non-financial institutions, which may increase significantly, including product and pricing pressures, which can in turn impact Peoples' credit spreads, changes to third-party relationships and revenues, changes in the manner of providing services, customer acquisition and retention pressures, and Peoples' ability to attract, develop and retain qualified professionals; |
(6) | uncertainty regarding the nature, timing, cost, and effect of legislative or regulatory changes or actions, or deposit insurance premium levels, promulgated and to be promulgated by governmental and regulatory agencies in the State of Ohio, the Federal Deposit Insurance Corporation, the Federal Reserve Board and the Consumer Financial Protection Bureau, which may subject Peoples, its subsidiaries, or one or more acquired companies to a variety of new and more stringent legal and regulatory requirements which adversely affect their respective businesses, including in particular the rules and regulations promulgated and to be promulgated under the CARES Act, and the follow-up legislation enacted as the Consolidated Appropriations Act, 2021, the American Rescue Plan Act of 2021, the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, and the Basel III regulatory capital reform; |
(7) | the effects of easing restrictions on participants in the financial services industry; |
(8) | local, regional, national and international economic conditions (including the impact of potential or imposed tariffs, a U.S. withdrawal from or significant renegotiation of trade agreements, trade wars and other changes in trade regulations, and changes in the relationship of the U.S. and its global trading partners) and the impact these conditions may have on Peoples, its customers and its counterparties, and Peoples' assessment of the impact, which may be different than anticipated; |
(9) | Peoples may issue equity securities in connection with future acquisitions, including the proposed merger of Peoples and Premier, if consummated, which could cause ownership and economic dilution to Peoples' current shareholders; |
(10) | changes in prepayment speeds, loan originations, levels of nonperforming assets, delinquent loans, charge-offs, and customer and other counterparties' performance and creditworthiness generally, which may be less favorable than expected in light of the COVID-19 pandemic and adversely impact the amount of interest income generated; |
(11) | Peoples may have more credit risk and higher credit losses to the extent there are loan concentrations by location or industry of borrowers or collateral; |
(12) | changes in accounting standards, policies, estimates or procedures may adversely affect Peoples' reported financial condition or results of operations; |
(13) | the impact of assumptions, estimates and inputs used within models, which may vary materially from actual outcomes, including under the CECL model; |
(14) | the discontinuation of the London Interbank Offered Rate ("LIBOR") and other reference rates which may result in increased expenses and litigation, and adversely impact the effectiveness of hedging strategies; |
(15) | adverse changes in the conditions and trends in the financial markets, including the impacts of the COVID-19 pandemic and the related responses by governmental and nongovernmental authorities to the pandemic, which may adversely affect the fair value of securities within Peoples' investment portfolio, the interest rate sensitivity of Peoples' consolidated balance sheet, and the income generated by Peoples' trust and investment activities; |
(16) | the volatility from quarter to quarter of mortgage banking income, whether due to interest rates, demand, the fair value of mortgage loans, or other factors; |
(17) | Peoples' ability to receive dividends from its subsidiaries; |
(18) | Peoples' ability to maintain required capital levels and adequate sources of funding and liquidity; |
(19) | the impact of larger or similar-sized financial institutions encountering problems, which may adversely affect the banking industry and/or Peoples' business generation and retention, funding and liquidity; |
(20) | Peoples' ability to secure confidential information and deliver products and services through the use of computer systems and telecommunications networks, including those of Peoples' third-party vendors and other service providers, which may prove inadequate, and could adversely affect customer confidence in Peoples and/or result in Peoples incurring a financial loss; |
(21) | Peoples' ability to anticipate and respond to technological changes, and Peoples' reliance on, and the potential failure of, a number of third-party vendors to perform as expected, including Peoples' primary core banking system provider, which can impact Peoples' ability to respond to customer needs and meet competitive demands; |
(22) | operational issues stemming from and/or capital spending necessitated by the potential need to adapt to industry changes in information technology systems on which Peoples and its subsidiaries are highly dependent; |
(23) | changes in consumer spending, borrowing and saving habits, whether due to changes in retail distribution strategies, consumer preferences and behavior, changes in business and economic conditions (including as a result of the COVID-19 pandemic), legislative or regulatory initiatives (including those in response to the COVID-19 pandemic), or other factors, which may be different than anticipated; |
(24) | the adequacy of Peoples' internal controls and risk management program in the event of changes in strategic, reputational, market, economic, operational, cybersecurity, compliance, legal, asset/liability repricing, liquidity, credit and interest rate risks associated with Peoples' business; |
(25) | the impact on Peoples' businesses, personnel, facilities, or systems, of losses related to acts of fraud, theft, misappropriation or violence; |
(26) | the impact on Peoples' businesses, as well as on the risks described above, of various domestic or international widespread natural or other disasters, pandemics (including COVID-19), cybersecurity attacks, system failures, civil unrest, military or terrorist activities or international conflicts; |
(27) | the impact on Peoples' businesses and operating results of any costs associated with obtaining rights in intellectual property claimed by others and adequately protecting Peoples' intellectual property; |
(28) | risks and uncertainties associated with Peoples' entry into new geographic markets and risks resulting from Peoples' inexperience in these new geographic markets; |
(29) | Peoples' ability to integrate the NSL acquisition and any future acquisitions, including the pending merger of Premier into Peoples, which may be unsuccessful, or may be more difficult, time-consuming or costly than expected; |
(30) | the risk that expected revenue synergies and cost savings from the proposed merger of Peoples and Premier may not be fully realized or realized within the expected time frame; |
(31) | the risk that customer and employee relationships and business operations may be disrupted by the proposed merger of Peoples and Premier; |
(32) | Peoples' continued ability to grow deposits; |
(33) | the impact of future governmental and regulatory actions upon Peoples' participation in and execution of government programs related to the COVID-19 pandemic; |
(34) | uncertainty regarding the impact of changes to the U.S. presidential administration and Congress on the regulatory landscape, capital markets, elevated government debt, potential changes in tax legislation that may increase tax rates and the response to and management of the COVID-19 pandemic; and, |
(35) | other risk factors relating to the banking industry or Peoples as detailed from time to time in Peoples' reports filed with the Securities and Exchange Commission (the "SEC"), including those risk factors included in the disclosures under the heading "ITEM 1A. RISK FACTORS" of Peoples' Annual Report on Form 10-K for the fiscal year ended December 31, 2020 Peoples encourages readers of this news release to understand forward-looking statements to be strategic objectives rather than absolute targets of future performance. Peoples undertakes no obligation to update these forward-looking statements to reflect events or circumstances after the date of this news release or to reflect the occurrence of unanticipated events, except as required by applicable legal requirements. Copies of documents filed with the SEC are available free of charge at the SEC's website at http://www.sec.gov and/or from Peoples' website. |
As required by US GAAP, Peoples is required to evaluate the impact of subsequent events through the issuance date of its June 30, 2021 consolidated financial statements as part of its Quarterly Report on Form 10-Q to be filed with the SEC. Accordingly, subsequent events could occur that may cause Peoples to update its critical accounting estimates and to revise its financial information from that which is contained in this news release.
PER COMMON SHARE DATA AND SELECTED RATIOS (Unaudited) | |||||||||||||||||||
At or For the Three Months Ended | At or For the Six Months Ended | ||||||||||||||||||
June 30, | March 31, | June 30, | June 30, | ||||||||||||||||
2021 | 2021 | 2020 | 2021 | 2020 | |||||||||||||||
PER COMMON SHARE: | |||||||||||||||||||
Earnings per common share: | |||||||||||||||||||
Basic | $ | 0.52 | $ | 0.80 | $ | 0.24 | $ | 1.32 | $ | 0.19 | |||||||||
Diluted | 0.51 | 0.79 | 0.23 | 1.31 | 0.19 | ||||||||||||||
Cash dividends declared per common share | 0.36 | 0.35 | 0.34 | 0.71 | 0.68 | ||||||||||||||
Book value per common share | 29.78 | 29.49 | 28.57 | 29.78 | 28.57 | ||||||||||||||
Tangible book value per common share (a) | 18.51 | 20.12 | 19.70 | 18.51 | 19.70 | ||||||||||||||
Closing price of common shares at end of period | $ | 29.62 | $ | 33.17 | $ | 21.28 | $ | 29.62 | $ | 21.28 | |||||||||
SELECTED RATIOS: | |||||||||||||||||||
Return on average stockholders' equity (b) | 6.96 | % | 10.86 | % | 3.34 | % | 8.89 | % | 1.37 | % | |||||||||
Return on average tangible equity (b)(c) | 12.49 | % | 16.45 | % | 5.42 | % | 14.55 | % | 2.54 | % | |||||||||
Return on average assets (b) | 0.78 | % | 1.28 | % | 0.40 | % | 1.02 | % | 0.17 | % | |||||||||
Return on average assets adjusted for non-core items (b)(d) | 1.16 | % | 1.48 | % | 0.48 | % | 1.32 | % | 0.23 | % | |||||||||
Efficiency ratio (e) | 68.64 | % | 70.37 | % | 62.34 | % | 69.49 | % | 64.50 | % | |||||||||
Efficiency ratio adjusted for non-core items (f) | 64.23 | % | 65.19 | % | 59.94 | % | 64.70 | % | 62.76 | % | |||||||||
Pre-provision net revenue to total average assets (b)(g) | 1.23 | % | 1.23 | % | 1.48 | % | 1.23 | % | 1.47 | % | |||||||||
Net interest margin (b)(h) | 3.45 | % | 3.26 | % | 3.19 | % | 3.36 | % | 3.34 | % | |||||||||
Dividend payout ratio (i)(j) | 69.93 | % | 44.19 | % | NM | 54.36 | % | NM | |||||||||||
(a) | Tangible book value per common share represents a non-US GAAP financial measure since it excludes the balance sheet impact of goodwill and other intangible assets acquired through acquisitions on stockholders' equity. Additional information regarding the calculation of this ratio is included at the end of this news release under the caption of "Non-US GAAP Financial Measures (Unaudited)." |
(b) | Ratios are presented on an annualized basis. |
(c) | Return on average tangible equity represents a non-US GAAP financial measure since it excludes the after-tax impact of amortization of other intangible assets from net income and it excludes the balance sheet impact of average goodwill and other intangible assets acquired through acquisitions on average stockholders' equity. Additional information regarding the calculation of this ratio is included at the end of this news release under the caption of "Non-US GAAP Financial Measures (Unaudited)." |
(d) | Return on average assets adjusted for non-core items represents a non-US GAAP financial measure since it excludes the after-tax impact of all gains and losses, acquisition-related costs, pension settlement charges, severance expenses, COVID-19-related expenses and the contribution to Peoples Bank Foundation, Inc. Additional information regarding the calculation of this ratio is included at the end of this news release under the caption of "Non-US GAAP Financial Measures (Unaudited)." |
(e) | The efficiency ratio is defined as total non-interest expense (less amortization of other intangible assets) as a percentage of fully tax-equivalent net interest income plus total non-interest income (excluding all gains and losses). This ratio represents a non-US GAAP financial measure since it excludes amortization of other intangible assets, and all gains and losses included in earnings, and uses fully tax-equivalent net interest income. Additional information regarding the calculation of this ratio is included at the end of this news release under the caption of "Non-US GAAP Financial Measures (Unaudited)." |
(f) | The efficiency ratio adjusted for non-core items is defined as core non-interest expense (less amortization of other intangible assets) as a percentage of fully tax-equivalent net interest income plus total non-interest income (excluding all gains and losses). This ratio represents a non-US GAAP financial measure since it excludes the impact of all gains and losses, acquisition-related expenses, pension settlement charges, severance expenses, COVID-19-related expenses and the contribution to Peoples Bank Foundation, Inc. included in earnings, and uses fully tax-equivalent net interest income. Additional information regarding the calculation of this ratio is included at the end of this news release under the caption of "Non-US GAAP Financial Measures (Unaudited)." |
(g) | Pre-provision net revenue is defined as net interest income plus total non-interest income (excluding all gains and losses) minus total non-interest expense. This measure represents a non-US GAAP financial measure since it excludes the provision for (recovery of) credit losses and all gains and losses included in net income. This measure is a key metric used by federal bank regulatory agencies in their evaluation of capital adequacy for financial institutions. Additional information regarding the calculation of this ratio is included at the end of this news release under the caption of "Non-US GAAP Financial Measures (Unaudited)." |
(h) | Information presented on a fully tax-equivalent basis, using a |
(i) | This ratio is calculated based on dividends declared during the period divided by net income for the period. |
(j) | NM = not meaningful. |
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) | |||||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||
June 30, | March 31, | June 30, | June 30, | ||||||||||||||||
(Dollars in thousands, except per share data) | 2021 | 2021 | 2020 | 2021 | 2020 | ||||||||||||||
Total interest income | $ | 42,797 | $ | 38,962 | $ | 39,306 | $ | 81,759 | $ | 80,168 | |||||||||
Total interest expense | 3,137 | 3,384 | 4,446 | 6,521 | 10,672 | ||||||||||||||
Net interest income | 39,660 | 35,578 | 34,860 | 75,238 | 69,496 | ||||||||||||||
Provision for (recovery of) credit losses | 3,088 | (4,749) | 11,834 | (1,661) | 28,803 | ||||||||||||||
Net interest income after provision for (recovery of) | 36,572 | 40,327 | 23,026 | 76,899 | 40,693 | ||||||||||||||
Non-interest income: | |||||||||||||||||||
Electronic banking income | 4,418 | 3,911 | 3,523 | 8,329 | 6,803 | ||||||||||||||
Trust and investment income | 4,220 | 3,845 | 3,316 | 8,065 | 6,578 | ||||||||||||||
Insurance income | 3,335 | 5,221 | 3,191 | 8,556 | 7,321 | ||||||||||||||
Deposit account service charges | 2,044 | 1,985 | 1,909 | 4,029 | 4,729 | ||||||||||||||
Mortgage banking income | 820 | 1,140 | 938 | 1,960 | 1,688 | ||||||||||||||
Bank owned life insurance income | 446 | 446 | 470 | 892 | 1,052 | ||||||||||||||
Commercial loan swap fees | 61 | 60 | 955 | 121 | 1,199 | ||||||||||||||
Net loss on asset disposals and other transactions | (124) | (27) | (122) | (151) | (209) | ||||||||||||||
Net (loss) gain on investment securities | (202) | (336) | 62 | (538) | 381 | ||||||||||||||
Other non-interest income | 803 | 658 | 422 | 1,461 | 859 | ||||||||||||||
Total non-interest income | 15,821 | 16,903 | 14,664 | 32,724 | 30,401 | ||||||||||||||
Non-interest expense: | |||||||||||||||||||
Salaries and employee benefit costs | 21,928 | 20,759 | 17,985 | 42,687 | 37,903 | ||||||||||||||
Professional fees | 3,565 | 3,468 | 1,834 | 7,033 | 3,527 | ||||||||||||||
Net occupancy and equipment expense | 3,289 | 3,327 | 3,151 | 6,616 | 6,305 | ||||||||||||||
Data processing and software expense | 2,411 | 2,454 | 1,754 | 4,865 | 3,506 | ||||||||||||||
Electronic banking expense | 2,075 | 1,894 | 1,879 | 3,969 | 3,744 | ||||||||||||||
Amortization of other intangible assets | 1,368 | 620 | 728 | 1,988 | 1,457 | ||||||||||||||
Franchise tax expense | 822 | 855 | 881 | 1,677 | 1,763 | ||||||||||||||
Marketing expense | 676 | 911 | 632 | 1,587 | 1,105 | ||||||||||||||
Other loan expenses | 494 | 462 | 335 | 956 | 913 | ||||||||||||||
Communication expense | 386 | 282 | 294 | 668 | 574 | ||||||||||||||
FDIC insurance premiums | 326 | 463 | 152 | 789 | 147 | ||||||||||||||
Other non-interest expense | 2,559 | 2,492 | 2,180 | 5,051 | 5,186 | ||||||||||||||
Total non-interest expense | 39,899 | 37,987 | 31,805 | 77,886 | 66,130 | ||||||||||||||
Income before income taxes | 12,494 | 19,243 | 5,885 | 31,737 | 4,964 | ||||||||||||||
Income tax expense | 2,391 | 3,780 | 1,136 | 6,171 | 980 | ||||||||||||||
Net income | $ | 10,103 | $ | 15,463 | $ | 4,749 | $ | 25,566 | $ | 3,984 | |||||||||
PER COMMON SHARE DATA: | |||||||||||||||||||
Earnings per common share – basic | $ | 0.52 | $ | 0.80 | $ | 0.24 | $ | 1.32 | $ | 0.19 | |||||||||
Earnings per common share – diluted | $ | 0.51 | $ | 0.79 | $ | 0.23 | $ | 1.31 | $ | 0.19 | |||||||||
Cash dividends declared per common share | $ | 0.36 | $ | 0.35 | $ | 0.34 | $ | 0.71 | $ | 0.68 | |||||||||
Weighted-average common shares outstanding – basic | 19,317,454 | 19,282,665 | 19,720,315 | 19,300,156 | 20,043,329 | ||||||||||||||
Weighted-average common shares outstanding – diluted | 19,461,934 | 19,436,311 | 19,858,880 | 19,448,544 | 20,183,222 | ||||||||||||||
Common shares outstanding at end of period | 19,660,877 | 19,629,633 | 19,925,083 | 19,660,877 | 19,925,083 | ||||||||||||||
CONSOLIDATED BALANCE SHEETS | |||||||
June 30, | December 31, | ||||||
2021 | 2020 | ||||||
(Dollars in thousands) | (Unaudited) | ||||||
Assets | |||||||
Cash and cash equivalents: | |||||||
Cash and due from banks | $ | 57,239 | $ | 60,902 | |||
Interest-bearing deposits in other banks | 188,834 | 91,198 | |||||
Total cash and cash equivalents | 246,073 | 152,100 | |||||
Available-for-sale investment securities, at fair value (amortized cost of | 849,637 | 753,013 | |||||
Held-to-maturity investment securities, at amortized cost (fair value of | 180,224 | 66,458 | |||||
Other investment securities | 32,584 | 37,560 | |||||
Total investment securities (a) | 1,062,445 | 857,031 | |||||
Loans and leases, net of deferred fees and costs (b) | 3,372,199 | 3,402,940 | |||||
Allowance for credit losses | (47,942) | (50,359) | |||||
Net loans | 3,324,257 | 3,352,581 | |||||
Loans held for sale | 2,751 | 4,659 | |||||
Bank premises and equipment, net of accumulated depreciation | 58,548 | 60,094 | |||||
Bank owned life insurance | 72,482 | 71,591 | |||||
Goodwill | 196,500 | 171,260 | |||||
Other intangible assets | 25,076 | 13,337 | |||||
Other assets | 79,502 | 78,111 | |||||
Total assets | $ | 5,067,634 | $ | 4,760,764 | |||
Liabilities | |||||||
Deposits: | |||||||
Non-interest-bearing | $ | 1,181,045 | $ | 997,323 | |||
Interest-bearing | 3,051,578 | 2,913,136 | |||||
Total deposits | 4,232,623 | 3,910,459 | |||||
Short-term borrowings | 66,496 | 73,261 | |||||
Long-term borrowings | 95,081 | 110,568 | |||||
Accrued expenses and other liabilities | 87,929 | 90,803 | |||||
Total liabilities | $ | 4,482,129 | $ | 4,185,091 | |||
Stockholders' equity | |||||||
Preferred shares, no par value, 50,000 shares authorized, no shares issued at June 30, 2021 and December 31, 2020 | — | — | |||||
Common shares, no par value, 24,000,000 shares authorized, 21,208,689 shares issued at June 30, 2021 and 21,193,402 shares issued at December 31, 2020, including shares held in treasury | 422,652 | 422,536 | |||||
Retained earnings | 202,359 | 190,691 | |||||
Accumulated other comprehensive (loss) income, net of deferred income taxes | (2,222) | 1,336 | |||||
Treasury stock, at cost, 1,605,492 shares at June 30, 2021 and 1,686,046 shares at December 31, 2020 | (37,284) | (38,890) | |||||
Total stockholders' equity | $ | 585,505 | $ | 575,673 | |||
Total liabilities and stockholders' equity | $ | 5,067,634 | $ | 4,760,764 | |||
(a) | Available-for-sale investment securities and held-to-maturity investment securities are presented net of allowance for credit losses of |
(b) | Also referred to throughout this document as "total loans" and "loans held for investment." |
SELECTED FINANCIAL INFORMATION (Unaudited) | |||||||||||||||
June 30, | March 31, | December 31, | September 30, | June 30, | |||||||||||
(Dollars in thousands) | 2021 | 2021 | 2020 | 2020 | 2020 | ||||||||||
Loan Portfolio | |||||||||||||||
Construction | $ | 100,599 | $ | 78,699 | $ | 106,792 | $ | 108,051 | $ | 109,953 | |||||
Commercial real estate, other | 948,260 | 965,249 | 929,853 | 913,239 | 914,420 | ||||||||||
Commercial and industrial | 805,751 | 964,761 | 973,645 | 1,064,010 | 1,070,326 | ||||||||||
Premium finance | 117,088 | 110,590 | 114,758 | 104,124 | — | ||||||||||
Leases | 95,643 | — | — | — | — | ||||||||||
Residential real estate | 566,597 | 573,700 | 574,007 | 589,449 | 613,084 | ||||||||||
Home equity lines of credit | 118,401 | 117,426 | 120,913 | 121,935 | 123,384 | ||||||||||
Consumer, indirect | 537,926 | 519,749 | 503,527 | 491,699 | 450,334 | ||||||||||
Consumer, direct | 81,436 | 79,204 | 79,094 | 79,059 | 78,926 | ||||||||||
Deposit account overdrafts | 498 | 298 | 351 | 519 | 592 | ||||||||||
Total loans | $ | 3,372,199 | $ | 3,409,676 | $ | 3,402,940 | $ | 3,472,085 | $ | 3,361,019 | |||||
Total acquired loans (a) | $ | 481,927 | $ | 462,784 | $ | 521,465 | $ | 581,502 | $ | 582,743 | |||||
Total originated loans | $ | 2,890,272 | $ | 2,946,892 | $ | 2,881,475 | $ | 2,890,583 | $ | 2,778,276 | |||||
Deposit Balances | |||||||||||||||
Non-interest-bearing deposits (b) | $ | 1,181,045 | $ | 1,206,034 | $ | 997,323 | $ | 982,912 | $ | 1,005,732 | |||||
Interest-bearing deposits: | |||||||||||||||
Interest-bearing demand accounts (b) | 732,478 | 722,470 | 692,113 | 666,134 | 666,181 | ||||||||||
Retail certificates of deposit | 417,466 | 433,214 | 445,930 | 461,216 | 474,593 | ||||||||||
Money market deposit accounts | 547,412 | 586,099 | 591,373 | 581,398 | 598,641 | ||||||||||
Governmental deposit accounts | 498,390 | 511,937 | 385,384 | 409,967 | 377,787 | ||||||||||
Savings accounts | 689,086 | 676,345 | 628,190 | 589,625 | 580,703 | ||||||||||
Brokered deposits | 166,746 | 168,130 | 170,146 | 260,753 | 321,247 | ||||||||||
Total interest-bearing deposits | $ | 3,051,578 | $ | 3,098,195 | $ | 2,913,136 | $ | 2,969,093 | $ | 3,019,152 | |||||
Total deposits | $ | 4,232,623 | $ | 4,304,229 | $ | 3,910,459 | $ | 3,952,005 | $ | 4,024,884 | |||||
Total demand deposits (b) | $ | 1,913,523 | $ | 1,928,504 | $ | 1,689,436 | $ | 1,649,046 | $ | 1,671,913 | |||||
Asset Quality | |||||||||||||||
Nonperforming assets (NPAs): | |||||||||||||||
Loans 90+ days past due and accruing (c) | $ | 3,741 | $ | 1,044 | $ | 2,752 | $ | 2,815 | $ | 1,880 | |||||
Nonaccrual loans (c) | 23,079 | 24,744 | 25,793 | 26,436 | 25,029 | ||||||||||
Total nonperforming loans (NPLs) | 26,820 | 25,788 | 28,545 | 29,251 | 26,909 | ||||||||||
Other real estate owned (OREO) | 239 | 134 | 134 | 293 | 236 | ||||||||||
Total NPAs | $ | 27,059 | $ | 25,922 | $ | 28,679 | $ | 29,544 | $ | 27,145 | |||||
Criticized loans (d) | $ | 113,802 | $ | 116,424 | $ | 126,619 | $ | 123,219 | $ | 105,499 | |||||
Classified loans (e) | 69,166 | 76,095 | 72,518 | 76,009 | 66,567 | ||||||||||
Allowance for credit losses as a percent of NPLs (f)(g) | 178.75 | % | 174.10 | % | 180.14 | % | 198.72 | % | 202.02 | % | |||||
NPLs as a percent of total loans (f)(g) | 0.79 | % | 0.76 | % | 0.82 | % | 0.84 | % | 0.80 | % | |||||
NPAs as a percent of total assets (f)(g) | 0.53 | % | 0.50 | % | 0.59 | % | 0.60 | % | 0.54 | % | |||||
NPAs as a percent of total loans and OREO (f)(g) | 0.80 | % | 0.76 | % | 0.84 | % | 0.85 | % | 0.80 | % | |||||
Criticized loans as a percent of total loans (f) | 3.37 | % | 3.41 | % | 3.72 | % | 3.55 | % | 3.14 | % | |||||
Classified loans as a percent of total loans (f) | 2.05 | % | 2.23 | % | 2.13 | % | 2.19 | % | 1.98 | % | |||||
Allowance for credit losses as a percent of total loans (f) | 1.42 | % | 1.32 | % | 1.48 | % | 1.67 | % | 1.62 | % | |||||
Capital Information (h)(i)(j) | |||||||||||||||
Common equity tier 1 risk-based capital ratio | 11.34 | % | 12.42 | % | 13.01 | % | 12.83 | % | 13.30 | % | |||||
Tier 1 risk-based capital ratio | 11.56 | % | 12.65 | % | 13.25 | % | 13.07 | % | 13.55 | % | |||||
Total risk-based capital ratio (tier 1 and tier 2) | 12.75 | % | 13.78 | % | 14.50 | % | 14.33 | % | 14.80 | % | |||||
Tier 1 leverage ratio | 7.87 | % | 9.00 | % | 8.97 | % | 8.62 | % | 8.97 | % | |||||
Common equity tier 1 capital | $ | 383,502 | $ | 418,089 | $ | 409,400 | $ | 398,553 | $ | 408,619 | |||||
Tier 1 capital | 391,190 | 425,739 | 417,011 | 406,124 | 416,150 | ||||||||||
Total capital (tier 1 and tier 2) | 431,424 | 463,872 | 456,384 | 445,101 | 454,641 | ||||||||||
Total risk-weighted assets | $ | 3,382,736 | $ | 3,365,637 | $ | 3,146,767 | $ | 3,106,817 | $ | 3,072,178 | |||||
Total stockholders' equity to total assets | 11.55 | % | 11.26 | % | 12.09 | % | 11.54 | % | 11.42 | % | |||||
Tangible equity to tangible assets (k) | 7.51 | % | 7.96 | % | 8.55 | % | 8.07 | % | 8.16 | % | |||||
(a) | Includes all loans and leases acquired and purchased in 2012 and thereafter. |
(b) | The sum of non-interest-bearing deposits and interest-bearing deposits is considered total demand deposits. |
(c) | The accounting for purchased credit deteriorated loans under ASU 2016-13 resulted in the movement of |
(d) | Includes loans categorized as a special mention, substandard, or doubtful. |
(e) | Includes loans categorized as substandard or doubtful. |
(f) | Data presented as of the end of the period indicated. |
(g) | Nonperforming loans include loans 90+ days past due and accruing, renegotiated loans and nonaccrual loans. Nonperforming assets include nonperforming loans and OREO. |
(h) | June 30, 2021 data based on preliminary analysis and subject to revision. |
(i) | Peoples' capital conservation buffer was |
(j) | Peoples has adopted the five-year transition to phase in the impact of the adoption of CECL on regulatory capital ratios. |
(k) | This ratio represents a non-US GAAP financial measure since it excludes the balance sheet impact of intangible assets acquired through acquisitions on both total stockholders' equity and total assets. Additional information regarding the calculation of this ratio is included at the end of this news release under the caption of "Non-US GAAP Financial Measures (Unaudited)." |
PROVISION FOR (RECOVERY OF) CREDIT LOSSES INFORMATION (Unaudited) | |||||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||
June 30, | March 31, | June 30, | June 30, | ||||||||||||||||
(Dollars in thousands) | 2021 | 2021 | 2020 | 2021 | 2020 | ||||||||||||||
Provision for (recovery of) credit losses | |||||||||||||||||||
Provision for (recovery of) other credit losses | $ | 3,035 | $ | (4,780) | $ | 11,773 | $ | (1,745) | $ | 28,597 | |||||||||
Provision for checking account overdraft credit losses | 53 | 31 | 61 | 84 | 206 | ||||||||||||||
Total provision for (recovery of) credit losses | $ | 3,088 | $ | (4,749) | $ | 11,834 | $ | (1,661) | $ | 28,803 | |||||||||
Net charge-offs (recoveries) | |||||||||||||||||||
Gross charge-offs | $ | 1,070 | $ | 1,255 | $ | 681 | $ | 2,325 | $ | 2,756 | |||||||||
Recoveries | 290 | 204 | 1,050 | 494 | 2,627 | ||||||||||||||
Net charge-offs (recoveries) | $ | 780 | $ | 1,051 | $ | (369) | $ | 1,831 | $ | 129 | |||||||||
Net charge-offs (recoveries) by type | |||||||||||||||||||
Commercial real estate, other | $ | — | $ | 157 | $ | 129 | $ | 157 | $ | 23 | |||||||||
Commercial and industrial | (13) | 293 | (790) | 280 | (1,057) | ||||||||||||||
Premium finance | 7 | 16 | — | 23 | — | ||||||||||||||
Leases | 415 | — | — | 415 | — | ||||||||||||||
Residential real estate | 96 | 118 | (84) | 214 | (23) | ||||||||||||||
Home equity lines of credit | 4 | 8 | 1 | 12 | 14 | ||||||||||||||
Consumer, indirect | 206 | 400 | 264 | 606 | 860 | ||||||||||||||
Consumer, direct | 20 | 10 | 41 | 30 | 89 | ||||||||||||||
Deposit account overdrafts | 45 | 49 | 70 | 94 | 223 | ||||||||||||||
Total net charge-offs (recoveries) | $ | 780 | $ | 1,051 | $ | (369) | $ | 1,831 | $ | 129 | |||||||||
Net charge-offs (recoveries) as a percent of average total loans | 0.09 | % | 0.13 | % | (0.05) | % | 0.11 | % | 0.01 | % | |||||||||
SUPPLEMENTAL INFORMATION (Unaudited) | |||||||||||||||||||
June 30, | March 31, | December 31, | September 30, | June 30, | |||||||||||||||
(Dollars in thousands) | 2021 | 2021 | 2020 | 2020 | 2020 | ||||||||||||||
Trust assets under administration and | $ | 1,963,884 | $ | 1,916,892 | $ | 1,885,324 | $ | 1,609,270 | $ | 1,552,785 | |||||||||
Brokerage assets under administration and | 1,119,247 | 1,071,126 | $ | 1,009,521 | 921,688 | 885,138 | |||||||||||||
Mortgage loans serviced for others | 454,399 | 469,788 | $ | 485,972 | 490,170 | 491,545 | |||||||||||||
Employees (full-time equivalent) | 925 | 887 | 894 | 886 | 894 | ||||||||||||||
CONSOLIDATED AVERAGE BALANCE SHEETS AND NET INTEREST INCOME (Unaudited) | ||||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||||
June 30, 2021 | March 31, 2021 | June 30, 2020 | ||||||||||||||||||||||||
(Dollars in thousands) | Average Balance | Income/ Expense | Yield/ Cost | Average Balance | Income/ Expense | Yield/ | Average | Income/ Expense | Yield/ | |||||||||||||||||
Assets | ||||||||||||||||||||||||||
Short-term investments | $ | 180,730 | $ | 53 | 0.12 | % | $ | 146,957 | $ | 40 | 0.11 | % | $ | 164,487 | $ | 48 | 0.12 | % | ||||||||
Investment securities (a)(b) | 1,051,963 | 4,312 | 1.64 | % | 940,467 | 3,393 | 1.44 | % | 1,006,396 | 4,990 | 1.98 | % | ||||||||||||||
Loans (b)(c): | ||||||||||||||||||||||||||
Construction | 87,075 | 979 | 4.45 | % | 114,204 | 994 | 3.48 | % | 121,982 | 1,226 | 3.98 | % | ||||||||||||||
Commercial real estate, other | 916,604 | 8,829 | 3.81 | % | 879,335 | 8,602 | 3.91 | % | 849,070 | 8,873 | 4.13 | % | ||||||||||||||
Commercial and industrial | 887,756 | 9,241 | 4.12 | % | 941,625 | 10,592 | 4.50 | % | 979,206 | 8,842 | 3.57 | % | ||||||||||||||
Premium finance | 108,387 | 1,298 | 4.74 | % | 107,390 | 1,297 | 4.83 | % | — | — | — | % | ||||||||||||||
Leases | 86,519 | 4,215 | 19.27 | % | — | — | — | % | — | — | — | % | ||||||||||||||
Residential real estate (d) | 607,691 | 6,429 | 4.23 | % | 614,692 | 6,672 | 4.34 | % | 682,216 | 8,257 | 4.84 | % | ||||||||||||||
Home equity lines of credit | 119,354 | 1,180 | 3.97 | % | 121,864 | 1,187 | 3.95 | % | 128,632 | 1,493 | 4.67 | % | ||||||||||||||
Consumer, indirect | 529,180 | 5,313 | 4.03 | % | 509,845 | 5,203 | 4.14 | % | 421,972 | 4,554 | 4.34 | % | ||||||||||||||
Consumer, direct | 80,409 | 1,272 | 6.35 | % | 79,022 | 1,239 | 6.36 | % | 77,830 | 1,292 | 6.68 | % | ||||||||||||||
Total loans | 3,422,975 | 38,756 | 4.50 | % | 3,367,977 | 35,786 | 4.26 | % | 3,260,908 | 34,537 | 4.22 | % | ||||||||||||||
Allowance for credit losses | (46,967) | (49,854) | (48,768) | |||||||||||||||||||||||
Net loans | 3,376,008 | 3,318,123 | 3,212,140 | |||||||||||||||||||||||
Total earning assets | 4,608,701 | 43,121 | 3.72 | % | 4,405,547 | 39,219 | 3.57 | % | 4,383,023 | 39,575 | 3.60 | % | ||||||||||||||
Goodwill and other intangible assets | 222,553 | 184,253 | 177,012 | |||||||||||||||||||||||
Other assets | 351,892 | 322,276 | 267,981 | |||||||||||||||||||||||
Total assets | $ | 5,183,146 | $ | 4,912,076 | $ | 4,828,016 | ||||||||||||||||||||
Liabilities and Equity | ||||||||||||||||||||||||||
Interest-bearing deposits: | ||||||||||||||||||||||||||
Savings accounts | $ | 680,825 | $ | 21 | 0.01 | % | $ | 646,750 | $ | 35 | 0.02 | % | $ | 563,213 | $ | 33 | 0.02 | % | ||||||||
Governmental deposit accounts | 496,906 | 551 | 0.44 | % | 429,503 | 594 | 0.56 | % | 370,999 | 445 | 0.48 | % | ||||||||||||||
Interest-bearing demand accounts | 733,913 | 66 | 0.04 | % | 700,160 | 65 | 0.04 | % | 655,711 | 71 | 0.04 | % | ||||||||||||||
Money market deposit accounts | 564,593 | 94 | 0.07 | % | 564,836 | 132 | 0.09 | % | 575,858 | 364 | 0.25 | % | ||||||||||||||
Retail certificates of deposit | 424,279 | 980 | 0.93 | % | 439,819 | 1,123 | 1.04 | % | 481,305 | 1,870 | 1.56 | % | ||||||||||||||
Brokered deposits | 167,109 | 865 | 2.08 | % | 175,326 | 868 | 2.01 | % | 192,230 | 501 | 1.05 | % | ||||||||||||||
Total interest-bearing deposits | 3,067,625 | 2,577 | 0.34 | % | 2,956,394 | 2,817 | 0.39 | % | 2,839,316 | 3,284 | 0.47 | % | ||||||||||||||
Short-term borrowings | 70,028 | 92 | 0.53 | % | 71,089 | 100 | 0.57 | % | 183,989 | 574 | 1.25 | % | ||||||||||||||
Long-term borrowings | 108,830 | 468 | 1.72 | % | 110,384 | 467 | 1.71 | % | 135,398 | 588 | 1.75 | % | ||||||||||||||
Total borrowed funds | 178,858 | 560 | 1.26 | % | 181,473 | 567 | 1.26 | % | 319,387 | 1,162 | 1.46 | % | ||||||||||||||
Total interest-bearing liabilities | 3,246,483 | 3,137 | 0.39 | % | 3,137,867 | 3,384 | 0.44 | % | 3,158,703 | 4,446 | 0.57 | % | ||||||||||||||
Non-interest-bearing deposits | 1,272,623 | 1,110,993 | 997,179 | |||||||||||||||||||||||
Accrued expenses and other liabilities | 82,209 | 85,628 | 99,993 | |||||||||||||||||||||||
Total liabilities | 4,601,315 | 4,334,488 | 4,255,875 | |||||||||||||||||||||||
Stockholders' equity | 581,831 | 577,588 | 572,141 | |||||||||||||||||||||||
Total liabilities and stockholders' equity | $ | 5,183,146 | $ | 4,912,076 | $ | 4,828,016 | ||||||||||||||||||||
Net interest income/spread (b) | $ | 39,984 | 3.33 | % | $ | 35,835 | 3.13 | % | $ | 35,129 | 3.03 | % | ||||||||||||||
Net interest margin (b) | 3.45 | % | 3.26 | % | 3.19 | % | ||||||||||||||||||||
Six Months Ended | |||||||||||||||||
June 30, 2021 | June 30, 2020 | ||||||||||||||||
(Dollars in thousands) | Average | Income/ Expense | Yield/ Cost | Average | Income/ Expense | Yield/ Cost | |||||||||||
Assets | |||||||||||||||||
Short-term investments | $ | 163,937 | $ | 93 | 0.11 | % | $ | 119,143 | $ | 284 | 0.48 | % | |||||
Investment securities (a)(b) | 996,526 | 7,702 | 1.55 | % | 1,020,755 | 11,247 | 2.20 | % | |||||||||
Loans (b)(c): | |||||||||||||||||
Construction | 100,565 | 1,973 | 3.90 | % | 109,910 | 2,477 | 4.46 | % | |||||||||
Commercial real estate, other | 898,072 | 17,431 | 3.86 | % | 843,336 | 18,930 | 4.44 | % | |||||||||
Commercial and industrial | 914,542 | 19,833 | 4.31 | % | 814,321 | 16,266 | 3.95 | % | |||||||||
Premium finance | 107,891 | 2,595 | 4.78 | % | — | — | — | % | |||||||||
Leases | 43,499 | 4,215 | 19.27 | % | — | — | — | % | |||||||||
Residential real estate (d) | 611,172 | 13,101 | 4.29 | % | 673,976 | 16,628 | 4.93 | % | |||||||||
Home equity lines of credit | 120,602 | 2,367 | 3.96 | % | 130,152 | 3,268 | 5.05 | % | |||||||||
Consumer, indirect | 519,566 | 10,516 | 4.08 | % | 418,979 | 8,963 | 4.30 | % | |||||||||
Consumer, direct | 79,718 | 2,511 | 6.35 | % | 77,269 | 2,646 | 6.89 | % | |||||||||
Total loans | 3,395,627 | 74,542 | 4.38 | % | 3,067,943 | 69,178 | 4.49 | % | |||||||||
Allowance for credit losses | (48,403) | (38,158) | |||||||||||||||
Net loans | 3,347,224 | 3,029,785 | |||||||||||||||
Total earning assets | 4,507,687 | 82,337 | 3.65 | % | 4,169,683 | 80,709 | 3.85 | % | |||||||||
Goodwill and other intangible assets | 203,509 | 177,498 | |||||||||||||||
Other assets | 337,164 | 257,640 | |||||||||||||||
Total assets | $ | 5,048,360 | $ | 4,604,821 | |||||||||||||
Liabilities and Equity | |||||||||||||||||
Interest-bearing deposits: | |||||||||||||||||
Savings accounts | $ | 663,882 | $ | 56 | 0.02 | % | $ | 543,053 | $ | 107 | 0.04 | % | |||||
Governmental deposit accounts | 463,391 | 1,145 | 0.50 | % | 349,703 | 1,160 | 0.67 | % | |||||||||
Interest-bearing demand accounts | 717,129 | 131 | 0.04 | % | 642,194 | 319 | 0.10 | % | |||||||||
Money market deposit accounts | 564,714 | 226 | 0.08 | % | 526,168 | 1,054 | 0.40 | % | |||||||||
Retail certificates of deposit | 432,006 | 2,103 | 0.98 | % | 485,126 | 3,929 | 1.63 | % | |||||||||
Brokered deposits | 171,194 | 1,733 | 2.04 | % | 192,093 | 1,344 | 1.41 | % | |||||||||
Total interest-bearing deposits | 3,012,316 | 5,394 | 0.36 | % | 2,738,337 | 7,913 | 0.58 | % | |||||||||
Short-term borrowings | 70,555 | 192 | 0.55 | % | 218,811 | 1,613 | 1.48 | % | |||||||||
Long-term borrowings | 109,602 | 935 | 1.72 | % | 122,336 | 1,146 | 1.88 | % | |||||||||
Total borrowed funds | 180,157 | 1,127 | 1.26 | % | 341,147 | 2,759 | 1.62 | % | |||||||||
Total interest-bearing liabilities | 3,192,473 | 6,521 | 0.41 | % | 3,079,484 | 10,672 | 0.70 | % | |||||||||
Non-interest-bearing deposits | 1,192,254 | 852,846 | |||||||||||||||
Accrued expenses and other liabilities | 83,912 | 88,298 | |||||||||||||||
Total liabilities | 4,468,639 | 4,020,628 | |||||||||||||||
Stockholders' equity | 579,721 | 584,193 | |||||||||||||||
Total liabilities and stockholders' equity | $ | 5,048,360 | $ | 4,604,821 | |||||||||||||
Net interest income/spread (b) | $ | 75,816 | 3.24 | % | $ | 70,037 | 3.15 | % | |||||||||
Net interest margin (b) | 3.36 | % | 3.34 | % | |||||||||||||
(a) | Average balances are based on carrying value. |
(b) | Interest income and yields are presented on a fully tax-equivalent basis, using a |
(c) | Average balances include nonaccrual and impaired loans. Interest income includes interest earned and received on nonaccrual loans prior to the loans being placed on nonaccrual status. Loan fees included in interest income were immaterial for all periods presented. |
(d) | Loans held for sale are included in the average loan balance listed. Related interest income on loans originated for sale prior to the loan being sold is included in loan interest income. |
NON-US GAAP FINANCIAL MEASURES (Unaudited) | |||||||||||||||||||
The following non-US GAAP financial measures used by Peoples provide information useful to investors in understanding Peoples' operating performance and trends, and facilitate comparisons with the performance of Peoples' peers. Peoples also uses the non-US GAAP financial measures for calculating incentive compensation. The following tables summarize the non-US GAAP financial measures derived from amounts reported in Peoples' consolidated financial statements: | |||||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||
June 30, | March 31, | June 30, | June 30, | ||||||||||||||||
(Dollars in thousands) | 2021 | 2021 | 2020 | 2021 | 2020 | ||||||||||||||
Core non-interest expense: | |||||||||||||||||||
Total non-interest expense | $ | 39,899 | $ | 37,987 | $ | 31,805 | $ | 77,886 | $ | 66,130 | |||||||||
Less: acquisition-related expenses | 2,253 | 1,911 | 47 | 4,164 | 77 | ||||||||||||||
Less: pension settlement charges | — | — | 151 | — | 519 | ||||||||||||||
Less: severance expenses | 14 | 49 | 79 | 63 | 92 | ||||||||||||||
Less: COVID-19-related expenses | 210 | 292 | 918 | 502 | 1,058 | ||||||||||||||
Less: Peoples Bank Foundation, Inc. contribution | — | 500 | — | 500 | — | ||||||||||||||
Core non-interest expense | $ | 37,422 | $ | 35,235 | $ | 30,610 | $ | 72,657 | $ | 64,384 | |||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||
June 30, | March 31, | June 30, | June 30, | ||||||||||||||||
(Dollars in thousands) | 2021 | 2021 | 2020 | 2021 | 2020 | ||||||||||||||
Efficiency ratio: | |||||||||||||||||||
Total non-interest expense | 39,899 | $ | 37,987 | 31,805 | 77,886 | 66,130 | |||||||||||||
Less: amortization of other intangible assets | 1,368 | 620 | 728 | 1,988 | 1,457 | ||||||||||||||
Adjusted non-interest expense | $ | 38,531 | $ | 37,367 | $ | 31,077 | $ | 75,898 | $ | 64,673 | |||||||||
Total non-interest income | $ | 15,821 | $ | 16,903 | $ | 14,664 | $ | 32,724 | $ | 30,401 | |||||||||
Less: net gain on investment securities | — | — | 62 | — | 381 | ||||||||||||||
Add: net loss on investment securities | (202) | (336) | — | (538) | — | ||||||||||||||
Add: net loss on asset disposals and other transactions | (124) | (27) | (122) | (151) | (209) | ||||||||||||||
Total non-interest income, excluding net gains and losses | $ | 16,147 | $ | 17,266 | $ | 14,724 | $ | 33,413 | $ | 30,229 | |||||||||
Net interest income | $ | 39,660 | $ | 35,578 | $ | 34,860 | $ | 75,238 | $ | 69,496 | |||||||||
Add: fully tax-equivalent adjustment (a) | 324 | 257 | 269 | 578 | 541 | ||||||||||||||
Net interest income on a fully tax-equivalent basis | $ | 39,984 | $ | 35,835 | $ | 35,129 | $ | 75,816 | $ | 70,037 | |||||||||
Adjusted revenue | $ | 56,131 | $ | 53,101 | $ | 49,853 | $ | 109,229 | $ | 100,266 | |||||||||
Efficiency ratio | 68.64 | % | 70.37 | % | 62.34 | % | 69.49 | % | 64.50 | % | |||||||||
Efficiency ratio adjusted for non-core items: | |||||||||||||||||||
Core non-interest expense | $ | 37,422 | $ | 35,235 | $ | 30,610 | $ | 72,657 | $ | 64,384 | |||||||||
Less: amortization of other intangible assets | 1,368 | 620 | 728 | 1,988 | 1,457 | ||||||||||||||
Adjusted core non-interest expense | $ | 36,054 | $ | 34,615 | $ | 29,882 | $ | 70,669 | $ | 62,927 | |||||||||
Adjusted revenue | $ | 56,131 | $ | 53,101 | $ | 49,853 | $ | 109,229 | $ | 100,266 | |||||||||
Efficiency ratio adjusted for non-core items | 64.23 | % | 65.19 | % | 59.94 | % | 64.70 | % | 62.76 | % | |||||||||
(a) | Tax effect is calculated using a |
NON-US GAAP FINANCIAL MEASURES (Unaudited) -- (Continued) | |||||||||||||||
June 30, | March 31, | December 31, | September 30, | June 30, | |||||||||||
(Dollars in thousands, except per share data) | 2021 | 2021 | 2020 | 2020 | 2020 | ||||||||||
Tangible equity: | |||||||||||||||
Total stockholders' equity | $ | 585,505 | $ | 578,893 | $ | 575,673 | $ | 566,856 | $ | 569,177 | |||||
Less: goodwill and other intangible assets | 221,576 | 184,007 | 184,597 | 185,397 | 176,625 | ||||||||||
Tangible equity | $ | 363,929 | $ | 394,886 | $ | 391,076 | $ | 381,459 | $ | 392,552 | |||||
Tangible assets: | |||||||||||||||
Total assets | $ | 5,067,634 | $ | 5,143,052 | $ | 4,760,764 | $ | 4,911,807 | $ | 4,985,819 | |||||
Less: goodwill and other intangible assets | 221,576 | 184,007 | 184,597 | 185,397 | 176,625 | ||||||||||
Tangible assets | $ | 4,846,058 | $ | 4,959,045 | $ | 4,576,167 | $ | 4,726,410 | $ | 4,809,194 | |||||
Tangible book value per common share: | |||||||||||||||
Tangible equity | $ | 363,929 | $ | 394,886 | $ | 391,076 | $ | 381,459 | $ | 392,552 | |||||
Common shares outstanding | 19,660,877 | 19,629,633 | 19,563,979 | 19,721,783 | 19,925,083 | ||||||||||
Tangible book value per common share | $ | 18.51 | $ | 20.12 | $ | 19.99 | $ | 19.34 | $ | 19.70 | |||||
Tangible equity to tangible assets ratio: | |||||||||||||||
Tangible equity | $ | 363,929 | $ | 394,886 | $ | 391,076 | $ | 381,459 | $ | 392,552 | |||||
Tangible assets | $ | 4,846,058 | $ | 4,959,045 | $ | 4,576,167 | $ | 4,726,410 | $ | 4,809,194 | |||||
Tangible equity to tangible assets | 7.51 | % | 7.96 | % | 8.55 | % | 8.07 | % | 8.16 | % | |||||
Three Months Ended | Six Months Ended | ||||||||||||||||||
June 30, | March 31, | June 30, | June 30, | ||||||||||||||||
(Dollars in thousands, except per share data) | 2021 | 2021 | 2020 | 2021 | 2020 | ||||||||||||||
Pre-provision net revenue: | |||||||||||||||||||
Income before income taxes | $ | 12,494 | $ | 19,243 | $ | 5,885 | $ | 31,737 | $ | 4,964 | |||||||||
Add: provision for credit losses | 3,088 | — | 11,834 | — | 28,803 | ||||||||||||||
Add: loss on OREO | — | — | — | — | 17 | ||||||||||||||
Add: loss on investment securities | 202 | 336 | — | 538 | — | ||||||||||||||
Add: loss on other assets | 132 | 27 | 145 | 159 | 215 | ||||||||||||||
Less: recovery of credit losses | — | 4,749 | — | 1,661 | — | ||||||||||||||
Less: gain on OREO | 8 | — | 1 | 8 | 1 | ||||||||||||||
Less: gain on investment securities | — | — | 62 | — | 381 | ||||||||||||||
Less: gain on other assets | — | — | 22 | — | 22 | ||||||||||||||
Pre-provision net revenue | $ | 15,908 | $ | 14,857 | $ | 17,779 | $ | 30,765 | $ | 33,595 | |||||||||
Total average assets | $ | 5,183,146 | $ | 4,912,076 | $ | 4,828,016 | $ | 5,048,360 | $ | 4,604,821 | |||||||||
Pre-provision net revenue to total average assets | 1.23 | % | 1.23 | % | 1.48 | % | 1.23 | % | 1.47 | % | |||||||||
Weighted-average common shares outstanding – diluted | 19,461,934 | 19,436,311 | 19,858,880 | 19,448,544 | 20,183,222 | ||||||||||||||
Pre-provision net revenue per common share – diluted | |||||||||||||||||||
NON-US GAAP FINANCIAL MEASURES (Unaudited) -- (Continued) | |||||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||
June 30, | March 31, | June 30, | June 30, | ||||||||||||||||
(Dollars in thousands) | 2021 | 2021 | 2020 | 2021 | 2020 | ||||||||||||||
Annualized net income adjusted for non-core items: | |||||||||||||||||||
Net income | $ | 10,103 | $ | 15,463 | $ | 4,749 | $ | 25,566 | $ | 3,984 | |||||||||
Add: net loss on investment securities | 202 | 336 | — | 538 | — | ||||||||||||||
Less: tax effect of loss on investment securities (a) | 42 | 71 | — | 113 | — | ||||||||||||||
Less: net gain on investment securities | — | — | 62 | — | 381 | ||||||||||||||
Add: tax effect of net gain on investment securities (a) | — | — | 13 | — | 80 | ||||||||||||||
Add: net loss on asset disposals and other transactions | 124 | 27 | 122 | 151 | 209 | ||||||||||||||
Less: tax effect of net loss on asset disposals and other transactions (a) | 26 | 6 | 26 | 32 | 44 | ||||||||||||||
Add: acquisition-related costs (b) | 5,673 | 1,911 | 47 | 7,584 | 77 | ||||||||||||||
Less: tax effect of acquisition-related costs (a) | 1,191 | 401 | 10 | 1,593 | 16 | ||||||||||||||
Add: pension settlement charges | — | — | 151 | — | 519 | ||||||||||||||
Less: tax effect of pension settlement charges (a) | — | — | 32 | — | 109 | ||||||||||||||
Add: severance expenses | 14 | 49 | 79 | 63 | 92 | ||||||||||||||
Less: tax effect of severance expenses (a) | 3 | 10 | 17 | 13 | 20 | ||||||||||||||
Add: COVID-19-related expenses | 210 | 292 | 918 | 502 | 1,058 | ||||||||||||||
Less: tax effect of COVID-19-related expenses (a) | 44 | 61 | 193 | 105 | 222 | ||||||||||||||
Add: Peoples Bank Foundation, Inc. contribution | — | 500 | — | 500 | — | ||||||||||||||
Less: tax effect of Peoples Bank Foundation, Inc. contribution | — | 105 | — | 105 | — | ||||||||||||||
Net income adjusted for non-core items (after tax) | $ | 15,020 | $ | 17,924 | $ | 5,739 | $ | 32,943 | $ | 5,227 | |||||||||
Days in the period | 91 | 90 | 91 | 181 | 182 | ||||||||||||||
Days in the year | 365 | 365 | 366 | 365 | 366 | ||||||||||||||
Annualized net income | $ | 40,523 | $ | 62,711 | $ | 19,100 | $ | 51,556 | $ | 8,012 | |||||||||
Annualized net income adjusted for non-core items (after tax) | $ | 60,245 | $ | 72,692 | $ | 23,082 | $ | 66,432 | $ | 10,511 | |||||||||
Return on average assets: | |||||||||||||||||||
Annualized net income | $ | 40,523 | $ | 62,711 | $ | 19,100 | $ | 51,556 | $ | 8,012 | |||||||||
Total average assets | $ | 5,183,146 | $ | 4,912,076 | $ | 4,828,016 | $ | 5,048,360 | $ | 4,604,821 | |||||||||
Return on average assets | 0.78 | % | 1.28 | % | 0.40 | % | 1.02 | % | 0.17 | % | |||||||||
Return on average assets adjusted for non-core items: | |||||||||||||||||||
Annualized net income adjusted for non-core items (after tax) | $ | 60,245 | $ | 72,692 | $ | 23,082 | $ | 66,432 | $ | 10,511 | |||||||||
Total average assets | $ | 5,183,146 | $ | 4,912,076 | $ | 4,828,016 | $ | 5,048,360 | $ | 4,604,821 | |||||||||
Return on average assets adjusted for non-core items | 1.16 | % | 1.48 | % | 0.48 | % | 1.32 | % | 0.23 | % | |||||||||
(a) | Tax effect is calculated using a |
(b) | Acquisition-related costs include the establishment of the allowance for credit losses (and related provision for credit losses) associated with NSL on acquisition date. |
NON-US GAAP FINANCIAL MEASURES (Unaudited) -- (Continued) | |||||||||||||||||||
Three Months Ended | At or For the Six Months Ended | ||||||||||||||||||
June 30, | March 31, | June 30, | June 30, | ||||||||||||||||
(Dollars in thousands) | 2021 | 2021 | 2020 | 2021 | 2020 | ||||||||||||||
Annualized net income excluding amortization of other intangible assets: | |||||||||||||||||||
Net income | $ | 10,103 | $ | 15,463 | $ | 4,749 | $ | 25,566 | $ | 3,984 | |||||||||
Add: amortization of other intangible assets | 1,368 | 620 | 728 | 1,988 | 1,457 | ||||||||||||||
Less: tax effect of amortization of other intangible assets (a) | 287 | 130 | 153 | 417 | 306 | ||||||||||||||
Net income excluding amortization of other intangible assets (after tax) | $ | 11,184 | $ | 15,953 | $ | 5,324 | $ | 27,137 | $ | 5,135 | |||||||||
Days in the period | 91 | 90 | 91 | 181 | 182 | ||||||||||||||
Days in the year | 365 | 365 | 366 | 365 | 366 | ||||||||||||||
Annualized net income | $ | 40,523 | $ | 62,711 | $ | 19,100 | $ | 51,556 | $ | 8,012 | |||||||||
Annualized net income excluding amortization of other intangible assets (after tax) | $ | 44,859 | $ | 64,698 | $ | 21,413 | $ | 54,724 | $ | 10,326 | |||||||||
Average tangible equity: | |||||||||||||||||||
Total average stockholders' equity | $ | 581,831 | $ | 577,588 | $ | 572,141 | $ | 579,721 | $ | 584,193 | |||||||||
Less: average goodwill and other intangible assets | 222,553 | 184,253 | 177,012 | 203,509 | 177,498 | ||||||||||||||
Average tangible equity | $ | 359,278 | $ | 393,335 | $ | 395,129 | $ | 376,212 | $ | 406,695 | |||||||||
Return on average stockholders' equity ratio: | |||||||||||||||||||
Annualized net income | $ | 40,523 | $ | 62,711 | $ | 19,100 | $ | 51,556 | $ | 8,012 | |||||||||
Average stockholders' equity | $ | 581,831 | $ | 577,588 | $ | 572,141 | $ | 579,721 | $ | 584,193 | |||||||||
Return on average stockholders' equity | 6.96 | % | 10.86 | % | 3.34 | % | 8.89 | % | 1.37 | % | |||||||||
Return on average tangible equity ratio: | |||||||||||||||||||
Annualized net income excluding amortization of other intangible assets (after tax) | $ | 44,859 | $ | 64,698 | $ | 21,413 | $ | 54,724 | $ | 10,326 | |||||||||
Average tangible equity | $ | 359,278 | $ | 393,335 | $ | 395,129 | $ | 376,212 | $ | 406,695 | |||||||||
Return on average tangible equity | 12.49 | % | 16.45 | % | 5.42 | % | 14.55 | % | 2.54 | % | |||||||||
(a) | Tax effect is calculated using a |
View original content:https://www.prnewswire.com/news-releases/peoples-bancorp-inc-announces-second-quarter-2021-results-301336992.html
SOURCE Peoples Bancorp Inc.
FAQ
What were the financial results for Peoples Bancorp in Q2 2021?
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