PEOPLES BANCORP INC. Item 2.02 Results of Operations and Financial Condition
OnJanuary 26, 2021 , management ofPeoples Bancorp Inc. ("Peoples") conducted a facilitated conference call at approximately11:00 a.m., Eastern Standard Time , to discuss results of operations for the quarter and twelve months endedDecember 31, 2020 . A replay of the conference call audio will be available on Peoples' website, www.peoplesbancorp.com, in the "Investor Relations" section for one year. A copy of the transcript of the conference call is included as Exhibit 99.1 to this Current Report on Form 8-K. The information contained in this Item 2.02 and Exhibit 99.1 included with this Current Report on Form 8-K, is being furnished pursuant to Item 2.02 and shall not be deemed to be "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that Section, nor shall such information be deemed to be incorporated by reference in any registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as otherwise stated in such filing. During the conference call, management referred to non-Generally Accepted Accounting Principles ("US GAAP") financial measures that are used by management to provide information useful to investors in understanding Peoples' operating performance and trends, and to facilitate comparisons with the performance of Peoples' peers. The following tables show the differences between the non-US GAAP financial measures referred to during the conference call and the most directly comparable US GAAP-based financial measures.
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Three Months Ended Year Ended
December 31, September 30, December 31, December 31,
(Dollars in thousands) 2020 2020 2019 2020 2019
Core non-interest expense:
Total non-interest expense $ 33,250 $
34,315
Less: acquisition-related expenses 77 335 65 489 7,287 Less: pension settlement charges 4 531 - 1,054 - Less: severance expenses 771 192 270 1,055 270 Less: COVID-19 related expenses 126 148 - 1,332 - Core non-interest expense$ 32,272 $ 33,109 $ 33,186 $ 129,765 $ 129,693 Three Months Ended Year Ended December 31, September 30, December 31, December 31, (Dollars in thousands) 2020 2020 2019 2020 2019 Efficiency ratio: Total non-interest expense$ 33,250 $ 34,315
909 857 888 3,223 3,359
Adjusted total non-interest expense 32,341 33,458 32,633 130,472 133,891
Total non-interest income 16,501 16,770 17,163 63,672 64,274
Less: net gain on investment
securities - 2 94 655 164
Add: net loss on investment
securities (751) - - (1,023) -
Add: net loss on asset disposals and
other transactions (53) (28) (229) (290) (782)
Total non-interest income, excluding
net gains and losses 17,305 16,796 17,298 64,330 64,892
Net interest income 34,308 35,119 35,121 138,923 140,838
Add: fully tax-equivalent adjustment
(a) 251 262 287 1,054 1,068
Net interest income on a fully
tax-equivalent basis 34,559 35,381 35,408 139,977 141,906
Adjusted revenue $ 51,864 $ 52,177 $ 52,706 $ 204,307 $ 206,798
Efficiency ratio 62.36 % 64.12 % 61.92 % 63.86 % 64.74 %
Efficiency ratio adjusted for non-core items:
Core non-interest expense $ 32,272 $ 33,109
909 857 888 3,223 3,359
Adjusted core non-interest expense 31,363 32,252 32,298 126,542 126,334
Adjusted revenue $ 51,864 $ 52,177 $ 52,706 $ 204,307 $ 206,798
Efficiency ratio adjusted for
non-core items 60.47 % 61.81 % 61.28 % 61.94 % 61.09 %
(a) Tax effect is calculated using a 21% statutory federal corporate income tax rate.
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NON-US GAAP FINANCIAL MEASURES (Unaudited) -- (Continued)
At or For the Three Months Ended
December 31, September 30, June 30, March 31, December 31,
(Dollars in thousands, except
per share data) 2020 2020 2020 2020 2019
Tangible equity:
Total stockholders' equity $ 575,673 $ 566,856 $ 569,177 $ 583,721 $ 594,393
Less: goodwill and other
intangible assets 184,597 185,397 176,625 177,447 177,503
Tangible equity $ 391,076 $ 381,459 $ 392,552 $ 406,274 $ 416,890
Tangible assets:
Total assets $ 4,760,764 $ 4,911,807
184,597 185,397 176,625 177,447 177,503
Tangible assets $ 4,576,167 $ 4,726,410 Tangible book value per common share: Tangible equity$ 391,076 $ 381,459
19,721,783 19,925,083 20,346,843 20,698,941
Tangible book value per common
share $ 19.99 $ 19.34 Tangible equity to tangible assets ratio: Tangible equity$ 391,076 $ 381,459 $ 392,552 $ 406,274 $ 416,890 Tangible assets$ 4,576,167 $ 4,726,410 $ 4,809,194 $ 4,291,673 $ 4,176,662 Tangible equity to tangible assets 8.55 % 8.07 % 8.16 % 9.47 % 9.98 %
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Three Months Ended Year Ended
December 31, September 30, December 31, December 31,
(Dollars in thousands) 2020 2020 2019 2020 2019
Pre-provision net revenue:
Income before income taxes $ 24,836 $ 12,846
- 4,728 1,136 26,254 2,504
Add: loss on OREO 119 - 44 120 98
Add: loss on investment securities 751 - - 368 -
. . .
Item 8.01 Other Events
On January 29, 2021 , Peoples Bancorp Inc. ("Peoples") issued a press release
announcing that on January 28, 2021 , the Peoples Board of Directors authorized a
new share repurchase program authorizing Peoples to purchase, from time to time,
up to an aggregate of $30 million of its outstanding common shares. This new
share repurchase program replaces the prior share repurchase program approved by
the Peoples Board of Directors on February 27, 2020 , which had authorized
Peoples to purchase up to an aggregate of $40 million of its outstanding common
shares and was terminated on January 28, 2021 , with an aggregate of $28.4
million of Peoples common shares having been purchased through the termination
date. The press release is filed herewith as Exhibit 99.2.
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