Peoples Bancorp Inc. Announces 4th Quarter Earnings And Record Full Year Net Income For 2016

Peoples Bancorp Inc. Announces 4th Quarter Earnings And Record Full Year Net Income For 2016

PR Newswire

MARIETTA, Ohio, Jan. 27, 2017 /PRNewswire/ -- Peoples Bancorp Inc. ("Peoples") (NASDAQ: PEBO) today announced results for the quarter and year ended December 31, 2016.  Net income totaled $7.4 million for the fourth quarter of 2016, representing earnings per diluted common share of $0.41.  In comparison, earnings per diluted common share were $0.43 and $0.14 for the third quarter of 2016 and fourth quarter of 2015, respectively.  For the year, net income was $31.2 million in 2016 versus $10.9 million in 2015, representing earnings per diluted common share of $1.71 and $0.61, respectively.

"During 2016, we delivered on many of the objectives that had been communicated throughout the year, including loan growth of 7%, positive operating leverage, an efficiency ratio of 65% and control of credit quality and associated credit costs.  These objectives were achieved while upgrading our core banking systems, which will provide us with the capacity and capabilities to continue to grow," said Chuck Sulerzyski, President and Chief Executive Officer.  "While the system upgrade resulted in a pre-tax combined revenue and expense impact of $1.3 million, or $0.05 earnings per diluted share for the full year, the feedback from customers has been positive.  We are pleased with our accomplishments for the year, and remain committed to continual improvement throughout 2017."

Statement of Operations Highlights:

  • Total revenue grew 8% for the full year, 2% compared to the fourth quarter of 2015, and was down 2% compared to the linked quarter.
    • Net interest income was the main contributor to the growth compared to the prior year periods as it grew 3% compared to the fourth quarter of 2015 and 7% compared to the full year of 2015.
    • A decrease in non-interest income was the main cause of the decline compared to the linked quarter, which was largely the result of a decrease in commercial loan swap fee income.
  • Provision for loan losses was $0.7 million for the fourth quarter and $3.5 million for the full year of 2016, due primarily to loan growth and stable asset quality trends.
  • Total non-interest expense was $27.3 million for the fourth quarter of 2016, up slightly compared to the linked quarter, flat compared to the fourth quarter of 2015, and down 7% for the full year.
    • Peoples executed an upgrade of its core banking systems on November 7, 2016 which negatively impacted expenses for the fourth quarter of 2016 by $0.7 million and $1.3 million for the full year of 2016.
    • The efficiency ratio was 66.9% for the fourth quarter of 2016, compared to 64.3% for the third quarter of 2016 and 67.9% for the fourth quarter of 2015. For the full year, the efficiency ratio was 65.1% in 2016 compared to 75.5% in 2015.
    • The efficiency ratio, when adjusted for non-core items, was 64.8% for the fourth quarter of 2016, compared to 63.3% for the third quarter of 2016 and 64.7% in the fourth quarter of 2015. For the full year, the efficiency ratio, when adjusted for non-core items, was 64.3% in 2016 compared to 67.5% in 2015.
  • Operating leverage was positive for the fourth quarter of 2016 compared to the fourth quarter of 2015, and for the full year of 2016.

Balance Sheet Highlights:

  • Period-end total loan balances reflected annualized growth of 10% for the fourth quarter, and 7% for the full year.
    • Commercial loan balances grew at an annualized rate of 14% for the fourth quarter, or $43.1 million, and 8% for the full year, or $89.2 million.
    • Consumer loan balances grew at an annualized rate of 5% for the fourth quarter, or $12.6 million, and 7% for the full year, or $63.3 million.
  • Asset quality remained relatively stable for the quarter.
    • Net charge-offs as a percent of average gross loans (annualized) were 0.09% for the fourth quarter and full year of 2016.
    • Criticized loans were relatively flat compared to the linked quarter.
    • Nonperforming assets increased $1.5 million during the fourth quarter driven by an increase in nonaccrual loans.
    • Allowance for loan losses at December 31, 2016 increased $1.7 million, or 10%, compared to December 31, 2015.
    • Allowance for loan losses as a percent of originated loans, net of deferred fees and costs, was 1.08% at December 31, 2016, compared to 1.13% at September 30, 2016 and 1.19% at December 31, 2015.
  • Average deposit balances increased 1% compared to the fourth quarter of 2015 and 5% compared to the full year of 2015, while period-end deposit balances decreased 1% compared to December 31, 2015.
    • Retail certificates of deposit declined compared to the linked quarter, the prior year fourth quarter and the full year of 2015, both for period end and average balances.
    • Period-end governmental deposits declined compared to the linked quarter, the prior year fourth quarter and the full year of 2015.
    • Interest-bearing demand accounts increased compared to the linked quarter, the prior year fourth quarter and the full year of 2015, both for period end and average balances.
    • Cost of interest-bearing deposit balances was flat compared to the linked quarter and 2 basis points less than the fourth quarter of 2015.

Note: The comparison of the income statement and average balance sheet results between the full year of 2015 and the full year of 2016 was affected by the NB&T Financial Group, Inc. ("NB&T") acquisition, which closed March 6, 2015.

Net Interest Income:

Net interest income for the fourth quarter of 2016 was $26.7 million, up 2% compared to the linked quarter and 3% higher than the fourth quarter of 2015, while the net interest margin for these periods was 3.54%, 3.54% and 3.56%, respectively.  The increase compared to the prior periods in net interest income was due primarily to the growth in average loan balances and the related interest income.

For the full year 2016, net interest income was $104.9 million, up 7% compared to 2015, while the net interest margin for those periods was 3.54% and 3.53%, respectively.  The loan growth and NB&T acquisition were the drivers of the increase in net interest income.

The accretion income, net of amortization expense, from acquisitions was $0.9 million for the fourth quarter of 2016, compared to $0.8 million in the third quarter of 2016 and $1.2 million for the fourth quarter of 2015, which added 11 basis points, 10 basis points and 16 basis points, respectively, to net interest margin.  For the full year of 2016, accretion income, net of amortization expense, from acquisitions was $3.5 million, compared to $4.8 million in 2015, or 11 basis points and 17 basis points, respectively.

Net interest margin, excluding the net accretion income, described above, declined 1 basis point compared to the linked quarter, and improved 3 basis points compared to the fourth quarter of 2015.  For the full year of 2016, net interest margin, excluding net accretion income, improved 7 basis points compared to 2015.  The changes in net interest margin were the result of the sustained shift in the mix of the balance sheet, for both assets and liabilities, coupled with the restructuring of certain borrowings during the second quarter of 2016.

Provision for Loan Losses:

For the fourth quarter of 2016, provision for loan losses was $0.7 million, compared to $1.1 million for the third quarter of 2016 and $7.2 million for the fourth quarter of 2015.  Recent loan growth was the main driver of the provision for loan losses recorded during the fourth quarter and the full year of 2016.  Provision for loan losses was $3.5 million for the full year of 2016, compared to $14.1 million for 2015.  The provision recorded in the fourth quarter of 2015, and most of the amount recorded for the full year of 2015, was the result of a charge-off associated with one large commercial loan relationship.

Non-interest Income:

Total non-interest income for the fourth quarter of 2016 decreased $1.4 million, or 11%, compared to the linked quarter, and was flat compared to the fourth quarter of 2015.  The decrease compared to the third quarter of 2016 was due primarily to decreases in commercial loan swap fee income, electronic banking income, insurance income and deposit account service charges.  Commercial loan swap fee income is dependent upon customers preference for fixed versus variable interest rate loans, and the ability of the customers seeking the swap product to satisfy the financially sophisticated criteria to be eligible, which leads to variability in this income stream.  Electronic banking income was impacted by third party annual volume incentive revenue that was received in the third quarter.  Insurance income is typically lower in the fourth quarter.  Deposit account service charges were impacted by the system upgrade as Peoples granted waivers of $85,000 related to account services charges in the month of the upgrade.

For the full year of 2016, total non-interest income increased $3.6 million, or 8%, compared to 2015.  The increase compared to 2015 was due to increases in electronic banking income, trust and investment income, bank owned life insurance income and commercial loan swap fee income, with a portion of the growth attributable to the NB&T acquisition.  The increase in electronic banking income was the result of the increased usage of debit cards by more customers.  The increase in trust and investment income was due largely to growth in assets under management and the full year effect of NB&T operations.  The increase in bank owned life insurance income was the result of the additional $35 million of bank owned life insurance policies that were purchased late in the second quarter of 2016.

Non-interest Expenses:

Non-interest expenses were up 2% for the fourth quarter of 2016 compared to the linked quarter and relatively flat compared to the fourth quarter of 2015.  The increase compared to the linked quarter was due primarily to an increase in costs associated with the upgrade of Peoples' core banking systems, which was executed on November 7, 2016.  Non-interest expenses, adjusted for non-core charges, were relatively flat compared to the linked quarter and up 2% compared to the fourth quarter of 2015.  The increase compared to the fourth quarter of 2015 was largely the result of increased sales-based and incentive compensation expense, partially offset by a reduction in Federal Deposit Insurance Corporation ("FDIC") insurance expense.  In the fourth quarter of 2016, Peoples incurred $746,000 of costs associated with the system upgrade, compared to $423,000 in the third quarter of 2016.  In the fourth quarter of 2015, Peoples incurred $1.3 million of non-core charges, primarily acquisition-related costs.

For the full year of 2016, non-interest expenses were down $8.2 million, or 7%, compared to 2015.  Non-interest expenses, adjusted for non-core charges, were up 2% compared to the full year of 2015.  The increase compared to 2015 was primarily due to the full year effect of operating expenses associated with the NB&T acquisition, and increased sales-based and incentive compensation earned under the corporate incentive plan.  Peoples' number of full-time equivalent employees declined to 782 at December 31, 2016, compared to 799 September 30, 2016 and 817 at December 30, 2015.

The efficiency ratio for the fourth quarter of 2016 was 66.9%, compared to 64.3% for the linked quarter and 67.9% for the fourth quarter of 2015.  The increase in the efficiency ratio for the quarter was largely the result of the increase of $323,000 in non-core, system upgrade costs.  The efficiency ratio, when adjusted for non-core items, was 64.8% for the fourth quarter of 2016, 63.3% for the linked quarter and 64.7% for the fourth quarter of 2015.  The higher adjusted efficiency ratio in the fourth quarter of 2016 compared to the linked quarter was primarily due to lower non-interest income.

For the full year of 2016, the efficiency ratio was 65.1% compared to 75.5% in 2015.  The decrease in the efficiency ratio in 2016 compared to 2015 was the result of non-core charges, which were $10.5 million higher in 2015 primarily due to the acquisition costs associated with the NB&T acquisition.  For the full year of 2016, the efficiency ratio, when adjusted for non-core items, was 64.3% compared to 67.5% in 2015. The decrease in the adjusted efficiency ratio in 2016 compared to 2015 was due primarily to 8% revenue growth between the full year of 2016 and the full year of 2015.

Loans:

Period-end total loan balances at December 31, 2016 increased $55.7 million, or 10% annualized, compared to the September 30, 2016 balances, primarily driven by growth in commercial loan balances.  Commercial loans grew $43.1 million, or 14% annualized, with commercial and industrial loan growth of $22.3 million, or 22% annualized, and commercial real estate loan growth of $20.8 million, or 10% annualized, during the fourth quarter of 2016.  Consumer loans grew $12.6 million, or 5% annualized, during the fourth quarter, due mainly to indirect loan growth of $22.5 million, or 39% annualized, which was partially offset by a decline of $9.2 million, or 7% annualized, in residential real estate loan balances.

For the year, period-end loan balances increased 7%, with growth of 8% in commercial loan balances and 7% in consumer loan balances.  Indirect lending experienced the largest growth across all loan categories for the year, increasing by $85.7 million, or 51%.  Commercial and industrial loan growth was $70.6 million, or 20%, for the year.

The average loan balances for the fourth quarter of 2016 increased $50.4 million, or 9% annualized, compared to the linked quarter, $124.1 million, or 6%, compared to the fourth quarter of 2015, and $180.9 million, or 9%, for the year.  The increase compared to the linked quarter was due to a $32.1 million increase in commercial loan balances and a $18.3 million increase in consumer loan balances.  Compared to the fourth quarter of 2015, consumer loan balances increased $63.5 million while commercial loan balances increased $60.6 million.  For the year, commercial loan balances increased $100.7 million and consumer loan balances increased $80.2 million.  The growth in commercial loan balances for all periods was driven by commercial and industrial loan balances, while the growth in consumer loan balances was driven by indirect loan balances.

Asset Quality:

Asset quality metrics remained relatively stable during the fourth quarter of 2016.  Annualized net charge-offs were 0.09% of average gross loans during the fourth quarter of 2016, compared to 0.14% in the third quarter of 2016 and 2.63% in the fourth quarter of 2015.  For the full year of 2016, net charge-offs were 0.09% of average gross loans compared to 0.78% in 2015.

Criticized loans, which are those categorized as watch, substandard or doubtful, decreased $0.1 million compared to September 30, 2016 and $23.0 million compared to December 31, 2015.  Classified loans, which are those categorized as substandard or doubtful, increased $4.0 million compared to September 30, 2016 and declined $2.6 million compared to December 31, 2015.  The increase in classified loans during the fourth quarter of 2016 was primarily related to one commercial loan relationship.  Criticized loans as a percentage of total loans was 4.46% at December 31, 2016, compared to 4.58% at September 30, 2016 and 5.89% at December 31, 2015.  Classified loans as a percentage of total loans was 2.59% at December 31, 2016, compared to 2.48% at September 30, 2016 and 2.91% at December 31, 2015.

Period-end nonperforming assets increased $1.5 million compared to September 30, 2016, due primarily to an increase of $2.0 million in nonaccrual loans, which was partially offset by a decrease of $0.4 million in loans 90+ days past due and accruing.  The increase in nonaccrual loans was related to a few small loans, not one specific credit.  Compared to December 31, 2015, nonperforming assets increased $5.5 million, due primarily to an increase in nonaccrual loans of $7.8 million, which was partially offset by a decrease in loans 90+ days past due and accruing of $2.2 million.  As a percent of total assets, nonperforming assets were 0.75% at December 31, 2016, compared to 0.72% at September 30, 2016 and 0.62% at December 31, 2015.

At December 31, 2016, the allowance for loan losses increased to $18.4 million, compared to $18.2 million at September 30, 2016, and $16.8 million at December 31, 2015.  The ratio of the allowance for loan losses as a percent of originated loans (which does not include acquired loan balances), net of deferred fees and costs, was 1.08% at December 31, 2016, compared to 1.13% at September 30, 2016 and 1.19% at December 31, 2015.  The decline in this ratio compared to September 30, 2016 and December 31, 2015 was primarily due to the continued stabilization of the asset quality metrics.

Deposits:

Period-end deposits decreased $65.7 million, or 3%, during the quarter, with much of the decrease attributable to interest-bearing deposits, specifically governmental deposits and retail certificates of deposit.  Compared to December 31, 2015, period-end deposits decreased $26.2 million due primarily to a $64.1 million, or 14%, decrease in retail certificates of deposit.  Governmental deposits declined $25.0 million compared to December 31, 2016, and brokered certificates of deposits decreased $18.2 million, all of which was partially offset by increases in interest-bearing demand accounts of $29.0 million, savings accounts of $22.0 million, non-interests-bearing accounts of $16.5 million and money market accounts of $13.6 million.  The continued decline in retail certificates of deposit was mainly the result of the continued focus on growing low-cost deposits.  Non-interest-bearing deposits comprised 29% of total deposits at both December 31, 2016 and September 30, 2016, compared to 28% at December 31, 2015.

Average deposits for the fourth quarter of  2016 compared to the linked quarter decreased $6.4 million, as average interest-bearing deposits decreased $40.3 million, which was partially offset by an increase in average non-interest-bearing deposits of $33.9 million.  The decrease in interest-bearing deposits was due to a decrease in governmental deposits and certificates of deposit.  Average deposits for the fourth quarter of 2016 increased $16.0 million, or 1%, compared to the fourth quarter of 2015, and for the full year of 2016 increased $125.6 million, or 5%, compared to the full year of 2015.  The increase compared to the fourth quarter of 2015 was driven by a $27.1 million, or 4%, increase in non-interest-bearing deposits.  For the year, 53% of the growth in average deposits was due to interest-bearing deposits, while 47% was due to non-interest-bearing deposits.

Stockholders' Equity:

At December 31, 2016, the tier 1 risk-based capital ratio was 13.21%, compared to 13.34% at September 30, 2016 and 13.67% at December 31, 2015.  The total risk-based capital ratio was 14.11% at December 31, 2016, compared to 14.24% at September 30, 2016 and 14.54% at December 31, 2015.  These regulatory capital ratios were impacted by loan growth, partially offset by growth in retained earnings during the fourth quarter of 2016.  During the second, third and fourth quarters of 2016, no common shares were repurchased under the share repurchase program, compared to 279,770 shares repurchased in the first quarter of 2016.

Peoples' capital position remained strong at December 31, 2016, despite the slight decline from the third quarter.  The decline was mostly due to decreases in the market value of investment securities.  Book value per share was $23.92 at December 31, 2016, compared to $24.22 at September 30, 2016 and $22.81 at December 31, 2015.  Tangible book value per share was $15.89 at December 31, 2016, compared to $16.14 at September 30, 2016 and $14.68 at December 31, 2015.  The tangible equity to tangible assets ratio was 8.80% at December 31, 2016, compared to 9.13% at September 30, 2016 and 8.69% at December 31, 2015.

Peoples Bancorp Inc. is a diversified financial services holding company with $3.4 billion in total assets, 79 locations, including 71 full-service bank branches, and 78 ATMs in Ohio, West Virginia and Kentucky.  Peoples makes available a complete line of banking, investment, insurance and trust solutions through its subsidiaries - Peoples Bank and Peoples Insurance Agency, LLC.  Peoples' common shares are traded on the NASDAQ Global Select Market® under the symbol "PEBO", and Peoples is a member of the Russell 3000 index of U.S. publicly-traded companies.  Learn more about Peoples at www.peoplesbancorp.com.  

Conference Call to Discuss Earnings:

Peoples will conduct a facilitated conference call to discuss fourth quarter and full year 2016 results of operations today at 10:00 a.m., Eastern Standard 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-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 ("GAAP").  Management uses these "non-GAAP" financial measures in its analysis of Peoples' performance and the efficiency of its operations. Management believes that these non-GAAP 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 GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Below is a listing of the non-GAAP measures used in this news release:

    • Core non-interest income is non-GAAP since it excludes the impact of revenue waived related to the system upgrade.
    • Core non-interest expenses are non-GAAP since they exclude the impact of costs associated with the system upgrade, acquisition-related costs, pension settlement charges, severance charges and legal settlement charges.
    • 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. This measure is non-GAAP since it excludes amortization of other intangible assets and all gains and/or losses included in earnings, and uses fully tax-equivalent net interest income.
    • Tangible assets, tangible equity and tangible book value per common share measures are non-GAAP since they exclude the impact of goodwill and other intangible assets acquired through acquisitions on both total stockholders' equity and total assets and the related amortization from earnings.
    • Pre-provision net revenue is defined as net interest income plus total non-interest income minus total non-interest expense. This measure is non-GAAP since it excludes provision for loan losses and all gains and/or losses included in earnings.

A reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures is included at the end of this news release under the caption of "Non-GAAP Financial Measures".

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", "would", "should", "could" 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)

Peoples' ability to leverage the system upgrade (include the related core operating systems, data systems and products) without complications or difficulties that may otherwise result in the loss of customers, operational problems or one-time costs currently not anticipated to arise in connection with such upgrade;

(2)

the success, impact, and timing of the implementation of Peoples' business strategies, including the successful integration of acquisitions and the expansion of consumer lending activity;

(3)

Peoples' ability to integrate any future acquisitions which may be unsuccessful, or may be more difficult, time-consuming or costly than expected;

(4)

Peoples may issue equity securities in connection with future acquisitions, which could cause ownership and economic dilution to Peoples' current shareholders;

(5)

local, regional, national and international economic conditions 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;

(6)

competitive pressures among financial institutions or from non-financial institutions which may increase significantly, including product and pricing pressures, changes to third-party relationships and revenues, and Peoples' ability to attract, develop and retain qualified professionals;

(7)

changes in the interest rate environment due to economic conditions and/or the fiscal policies of the United States ("U.S.") government and the Board of Governors of the Federal Reserve System (the "Federal Reserve Board"), which may adversely impact interest rates, interest margins, loan demand and interest rate sensitivity;

(8)

changes in prepayment speeds, loan originations, levels of nonperforming assets, delinquent loans and charge-offs, which may be less favorable than expected and adversely impact the amount of interest income generated;

(9)

adverse changes in the economic conditions and/or activities, including, but not limited to, continued economic uncertainty in the U.S., the European Union (including the uncertainty created by the June 23, 2016 referendum by British voters to exit the European Union), Asia, and other areas, which could decrease sales volumes, add volatility to the global stock markets, and increase loan delinquencies and defaults;

(10)

uncertainty regarding the nature, timing and effect of legislative or regulatory changes or actions, promulgated and to be promulgated by governmental and regulatory agencies in the State of Ohio, the Federal Deposit Insurance Corporation, the Office of the Comptroller of the Currency, 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 Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, and the Basel III regulatory capital reform;

(11)

deterioration in the credit quality of Peoples' loan portfolio, which may adversely impact the provision for loan losses;

(12)

changes in accounting standards, policies, estimates or procedures which may adversely affect Peoples' reported financial condition or results of operations;

(13)

Peoples' assumptions and estimates used in applying critical accounting policies, which may prove unreliable, inaccurate or not predictive of actual results;

(14)

adverse changes in the conditions and trends in the financial markets, including political developments, 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;

(15)

Peoples' ability to receive dividends from its subsidiaries;

(16)

Peoples' ability to maintain required capital levels and adequate sources of funding and liquidity;

(17)

the impact of minimum capital thresholds established as a part of the implementation of Basel III;

(18)

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;

(19)

the costs and effects of regulatory and legal developments, including the outcome of potential regulatory or other governmental inquiries and legal proceedings and results of regulatory examinations;

(20)

Peoples' ability to secure confidential information through the use of computer systems and telecommunications networks, including those of Peoples' third-party vendors and other service providers, may prove inadequate, which could adversely affect customer confidence in Peoples and/or result in Peoples incurring a financial loss;

(21)

changes in consumer spending, borrowing and saving habits, whether due to changes in business and economic conditions, legislative or regulatory initiatives, or other factors, which may be different than anticipated;

(22)

the overall adequacy of Peoples' risk management program;

(23)

the impact on Peoples' businesses, as well as on the risks described above, of various domestic or international widespread natural or other disasters, pandemics, cyberattacks, military or terrorist activities or conflicts;

(24)

significant changes in the tax laws, which may adversely affect the fair values of deferred tax assets and obligations of states and political subdivisions held in Peoples' investment securities portfolio; and

(25)

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, 2015.

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 U.S. GAAP, Peoples is required to evaluate the impact of subsequent events through the issuance date of its December 31, 2016 consolidated financial statements as part of its Annual Report on Form 10-K 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



Three Months Ended


Year Ended


December 31,


September 30,


December 31,


December 31,


2016


2016


2015


2016


2015

PER COMMON SHARE:










Earnings per share:










   Basic

$

0.41



$

0.43



$

0.14



$

1.72



$

0.62


   Diluted

0.41



0.43



0.14



1.71



0.61


Cash dividends declared per share

0.17



0.16



0.15



0.64



0.60


Book value per share

23.92



24.22



22.81



23.92



22.81


Tangible book value per share (a)

15.89



16.14



14.68



15.89



14.68


Closing stock price at end of period

$

32.46



$

24.59



$

18.84



$

32.46



$

18.84












SELECTED RATIOS:










Return on average equity (b)

6.72

%


7.07

%


2.42

%


7.20

%


2.69

%

Return on average assets  (b)

0.87

%


0.93

%


0.32

%


0.94

%


0.35

%

Efficiency ratio (c)

66.87

%


64.33

%


67.94

%


65.13

%


75.50

%

Pre-provision net revenue to average assets (b)(d)

1.35

%


1.53

%


1.31

%


1.48

%


0.96

%

Net interest margin (b)(e)

3.54

%


3.54

%


3.56

%


3.54

%


3.53

%

Dividend payout ratio

41.70

%


37.37

%


106.58

%


37.40

%


96.35

%


(a)   This amount represents a non-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.

(b)   Ratios are presented on an annualized basis.

(c)   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.  This amount represents a non-GAAP financial measure since it excludes amortization of other intangible assets, and all 
        gains and/or 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.

(d)   This ratio represents a non-GAAP financial measure since it excludes the provision for (recovery of) loan losses and all gains and/or losses included 
        in earnings.  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.

(e)   Information presented on a fully tax-equivalent basis.

 

 

CONSOLIDATED STATEMENTS OF OPERATIONS  



Three Months Ended


Year Ended


December 31,


September 30,


December 31,


December 31,

(in $000's)

2016


2016


2015


2016


2015

Interest income

$

29,350



$

28,730



$

28,430



$

115,444



$

108,333


Interest expense

2,683



2,607



2,566



10,579



10,721


Net interest income

26,667



26,123



25,864



104,865



97,612


Provision for loan losses

711



1,146



7,238



3,539



14,097


Net interest income after provision for loan losses

25,956



24,977



18,626



101,326



83,515












Net gain on securities transactions

68



(1)



56



930



729


Loss on debt extinguishment







(707)



(520)


Net loss on loans held-for-sale and other real estate owned

(33)





(398)



(34)



(529)


Net loss on other assets

(76)



(224)



(100)



(392)



(739)












Non-interest income:










Insurance income

2,912



3,137



2,913



13,846



13,783


Trust and investment income

2,739



2,692



2,489



10,589



9,577


Deposit account service charges

2,663



2,833



2,780



10,662



10,845


Electronic banking income

2,486



2,765



2,425



10,353



8,958


Bank owned life insurance income

503



491



170



1,414



598


Mortgage banking income

452



427



390



1,304



1,317


Commercial loan swap fee income

79



569



281



1,076



565


Other non-interest income

277



624



653



1,826



1,798


  Total non-interest income

12,111



13,538



12,101



51,070



47,441












Non-interest expense:










Salaries and employee benefits costs

14,552



14,584



13,723



57,433



59,216


Net occupancy and equipment expense

2,580



2,768



2,934



10,735



11,207


Professional fees

2,193



1,661



1,753



7,436



7,295


Electronic banking expense

1,424



1,650



1,448



5,992



5,300


Data processing and software expense

1,260



741



1,001



3,763



3,671


Amortization of other intangible assets

1,007



1,008



1,133



4,030



4,077


Franchise taxes

642



529



416



2,192



1,968


Communication expense

531



518



564



2,261



2,286


Marketing expense

402



380



663



1,594



2,838


Foreclosed real estate and other loan expenses

319



189



245



859



1,276


FDIC insurance expense

193



549



568



1,899



2,084


Other non-interest expense

2,179



2,265



2,829



8,717



13,863


  Total non-interest expense

27,282



26,842



27,277



106,911



115,081


  Income before income taxes

10,744



11,448



3,008



45,282



14,816


Income tax expense

3,336



3,656



425



14,125



3,875


    Net income

$

7,408



$

7,792



$

2,583



$

31,157



$

10,941












PER COMMON SHARE DATA:










Earnings per share – Basic

$

0.41



$

0.43



$

0.14



$

1.72



$

0.62


Earnings per share – Diluted

$

0.41



$

0.43



$

0.14



$

1.71



$

0.61


Cash dividends declared per share

$

0.17



$

0.16



$

0.15



$

0.64



$

0.60












Weighted-average shares outstanding – Basic

18,009,056



17,993,443



18,142,997



18,013,693



17,555,140


Weighted-average shares outstanding – Diluted

18,172,030



18,110,710



18,278,272



18,155,463



17,687,795


Actual shares outstanding (end of period)

18,200,067



18,195,986



18,404,864



18,200,067



18,404,864


 

 

 

CONSOLIDATED BALANCE SHEETS



December 31,

(in $000's)

2016


2015





Assets




Cash and cash equivalents:




  Cash and due from banks

$

58,129



$

53,663


  Interest-bearing deposits in other banks

8,017



17,452


    Total cash and cash equivalents

66,146



71,115






Available-for-sale investment securities, at fair value (amortized cost of




  $777,017 at December 31, 2016 and $780,304 at December 31, 2015)

777,940



784,701


Held-to-maturity investment securities, at amortized cost (fair value of




  $43,227 at December 31, 2016 and $45,853 at December 31, 2015)

43,144



45,728


Other investment securities, at cost

38,371



38,401


    Total investment securities

859,455



868,830






Loans, net of deferred fees and costs

2,224,936



2,072,440


Allowance for loan losses

(18,429)



(16,779)


    Net loans

2,206,507



2,055,661






Loans held-for-sale

4,022



1,953


Bank premises and equipment, net of accumulated depreciation

53,616



53,487


Goodwill

132,631



132,631


Other intangible assets

13,387



16,986


Other assets

96,584



58,307


    Total assets

$

3,432,348



$

3,258,970






Liabilities




Deposits:




Non-interest-bearing deposits

$

734,421



$

717,939


Interest-bearing deposits

1,775,301



1,818,005


    Total deposits

2,509,722



2,535,944






Short-term borrowings

305,607



160,386


Long-term borrowings

145,155



113,670


Accrued expenses and other liabilities

36,603



29,181


    Total liabilities

2,997,087



2,839,181






Stockholders' Equity




Preferred stock, no par value (50,000 shares authorized, no shares issued




  at December 31, 2016 and December 31, 2015)




Common stock, no par value, 24,000,000 shares authorized, 18,939,091 shares 
     issued at December 31, 2016 and 18,931,200 shares issued at December 31, 
     2015, including shares in treasury

344,404



343,948


Retained earnings

110,294



90,790


Accumulated comprehensive loss, net of deferred income taxes

(1,554)



(359)


Treasury stock, at cost, 795,758 shares at December 31, 2016 and 586,686 
     shares at December 31, 2015

(17,883)



(14,590)


    Total stockholders' equity

435,261



419,789


    Total liabilities and stockholders' equity

$

3,432,348



$

3,258,970






 

 

 

SELECTED FINANCIAL INFORMATION



December 31,

September 30,

June 30,

March 31,

December 31,

(in $000's, end of period)

2016

2016

2016

2016

2015

Loan Portfolio






Commercial real estate, construction

$

94,726


$

81,080


$

98,993


$

81,381


$

75,899


Commercial real estate, other

736,023


728,878


708,910


728,199


736,276


Commercial and industrial

422,339


400,042


378,352


367,810


351,719


Residential real estate

535,925


545,161


555,123


565,749


565,555


Home equity lines of credit

111,492


111,196


109,017


107,701


106,429


Consumer, indirect

252,832


230,286


207,116


183,797


167,096


Consumer, other

70,519


71,491


70,065


68,395


68,018


Deposit account overdrafts

1,080


1,074


1,214


2,083


1,448


    Total loans

$

2,224,936


$

2,169,208


$

2,128,790


$

2,105,115


$

2,072,440


Total acquired loans (a)

$

516,832


$

551,021


$

591,967


$

627,819


$

657,801


    Total originated loans

$

1,708,104


$

1,618,187


$

1,536,823


$

1,477,296


$

1,414,639


Deposit Balances






Non-interest-bearing deposits

$

734,421


745,468


699,695


716,202


$

717,939


Interest-bearing deposits:






  Interest-bearing demand accounts

$

278,975


$

270,490


$

252,119


$

254,241


$

250,023


  Retail certificates of deposit

384,861


406,866


418,748


439,460


448,992


  Money market deposit accounts

407,754


411,111


401,828


395,022


394,119


  Governmental deposit accounts

251,671


286,716


300,639


313,904


276,639


  Savings accounts

436,344


438,087


438,952


434,381


414,375


  Brokered certificates of deposits

15,696


16,719


20,990


33,873


33,857


    Total interest-bearing deposits

1,775,301


1,829,989


1,833,276


1,870,881


1,818,005


    Total deposits

$

2,509,722


$

2,575,457


$

2,532,971


$

2,587,083


$

2,535,944


Asset Quality






Nonperforming assets (NPAs):






  Loans 90+ days past due and accruing

$

3,771


$

4,161


$

5,869


$

6,746


$

5,969


  Nonaccrual loans

21,325


19,346


15,582


13,579


13,531


    Total nonperforming loans (NPLs)

25,096


23,507


21,451


20,325


19,500


  Other real estate owned (OREO)

661


719


679


679


733


Total NPAs

$

25,757


$

24,226


$

22,130


$

21,004


$

20,233


Criticized loans (b)

$

99,182


$

99,294


$

106,616


$

119,368


$

122,147


Classified loans (c)

$

57,736


$

53,755


$

51,762


$

57,409


$

60,315


Allowance for loan losses as a percent of NPLs (d)(e)

73.43

%

77.50

%

83.16

%

84.92

%

86.05

%

NPLs as a percent of total loans (d)(e)

1.13

%

1.08

%

1.01

%

0.97

%

0.94

%

NPAs as a percent of total assets (d)(e)

0.75

%

0.72

%

0.66

%

0.64

%

0.62

%

NPAs as a percent of total loans and OREO (d)(e)

1.16

%

1.11

%

1.04

%

1.00

%

0.98

%

Criticized loans as a percent of total loans (b)(d)

4.46

%

4.58

%

5.01

%

5.67

%

5.89

%

Classified loans as a percent of total loans (c)(d)

2.59

%

2.48

%

2.43

%

2.73

%

2.91

%

Allowance for loan losses as a percent of originated






  loans, net of deferred fees and costs (d)

1.08

%

1.13

%

1.16

%

1.17

%

1.19

%

Capital Information (f)






Common Equity Tier 1 capital ratio

12.91

%

13.04

%

13.03

%

13.10

%

13.36

%

Tier 1 risk-based capital ratio

13.21

%

13.34

%

13.33

%

13.41

%

13.67

%

Total risk-based capital ratio (Tier 1 and Tier 2)

14.11

%

14.24

%

14.23

%

14.29

%

14.54

%

Leverage ratio

9.66

%

9.71

%

9.56

%

9.45

%

9.52

%

Common Equity Tier 1 capital

$

306,506


$

301,222


$

295,148


$

288,787


$

288,416


Tier 1 capital

313,430


308,099


301,977


295,569


295,151


Total capital (Tier 1 and Tier 2)

334,957


328,948


322,413


314,896


313,974


Total risk-weighted assets

$

2,373,359


$

2,309,951


$

2,265,022


$

2,203,776


$

2,158,713


Tangible equity to tangible assets (g)

8.80

%

9.13

%

9.10

%

8.88

%

8.69

%


(a)   Includes all loans acquired in 2012 and thereafter.

(b)   Includes loans categorized as watch, substandard or doubtful.

(c)   Includes loans categorized as substandard or doubtful.

(d)   Data presented as of the end of the period indicated.

(e)   Nonperforming loans include loans 90+ days past due and accruing, renegotiated loans and nonaccrual loans. Nonperforming assets include nonperforming 
        loans and other real estate owned.

(f)    December 31, 2016 data based on preliminary analysis and subject to revision.

(g)   These ratios represent non-GAAP financial measures since they exclude the balance sheet impact of goodwill and other 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.

 

 

 

PROVISION FOR LOAN LOSSES INFORMATION



Three Months Ended


Year Ended


December 31,


September 30,


December 31,


December 31,

(in $000's)

2016


2016


2015


2016


2015

Provision for Loan Losses










Provision for loan losses

$

480



$

978



$

7,100



$

2,890



$

13,485


Provision for checking account overdrafts

231



168



138



649



612


  Total provision for loan losses

$

711



$

1,146



$

7,238



$

3,539



$

14,097












Net Charge-Offs (Recoveries)










Gross charge-offs

$

1,076



$

1,263



$

14,003



5,197



$

16,761


Recoveries

575



498



364



3,308



1,562


  Net charge-offs

$

501



$

765



$

13,639



$

1,889



$

15,199












Net Charge-Offs (Recoveries) by Type










Commercial real estate, other

$

3



$

10



$

46



$

(1,141)



$

198


Commercial and industrial

(56)





13,145



711



13,478


Residential real estate

(22)



23



(16)



333



316


Home equity lines of credit

(7)



21



(3)



17



6


Consumer

381



542



295



1,370



598


Deposit account overdrafts

202



169



172



599



603


  Total net charge-offs

$

501



$

765



$

13,639



$

1,889



$

15,199












As a percent of average gross loans (annualized)

0.09

%


0.14

%


2.63

%


0.09

%


0.78

%

 

 

 

SUPPLEMENTAL INFORMATION



December 31,


September 30,


June 30,


March 31,


December 31,

(in $000's, end of period)

2016


2016


2016


2016


2015











Trust assets under management

$

1,301,509



$

1,292,044



$

1,280,004



$

1,254,824



$

1,275,253


Brokerage assets under management

777,771



754,168



729,519



706,314



664,153


Mortgage loans serviced for others

$

395,981



$

389,090



$

380,741



$

383,531



$

390,398


Employees (full-time equivalent)

782



799



803



821



817












 

 

 

CONSOLIDATED AVERAGE BALANCE SHEETS AND NET INTEREST INCOME



Three Months Ended


December 31, 2016


September 30, 2016


December 31, 2015

(in $000's)

Balance

Income/

Expense

Yield/ Cost


Balance

Income/

Expense

Yield/ Cost


Balance

Income/

Expense

Yield/ Cost

Assets












Short-term investments

$

8,520


$

13


0.61

%


$

8,663


$

10


0.46

%


$

12,840


$

8


0.25

%

Other long-term investments



%




%


1,096


2


0.72

%

Investment securities (a)(b)

862,355


5,816


2.70

%


849,266


5,686


2.68

%


880,938


5,911


2.68

%

Gross loans (b)(c)

2,184,398


24,037


4.34

%


2,133,993


23,531


4.35

%


2,060,268


23,024


4.41

%

Allowance for loan losses

(18,254)





(17,787)





(22,867)




Total earning assets

3,037,019


29,866


3.89

%


2,974,135


29,227


3.89

%


2,932,275


28,945


3.91

%













Intangible assets

146,489





147,466





150,717




Other assets

203,011





203,035





157,612




Total assets

$

3,386,519





$

3,324,636





$

3,240,604
















Liabilities and Equity












Interest-bearing deposits:












Savings accounts

$

436,733


$

58


0.05

%


$

439,464


$

59


0.05

%


$

409,827


$

55


0.05

%

Government deposit accounts

273,263


126


0.18

%


311,650


152


0.19

%


284,079


147


0.21

%

Interest-bearing demand accounts

275,653


65


0.09

%


264,182


61


0.09

%


239,627


43


0.07

%

Money market deposit accounts

407,171


202


0.20

%


400,749


175


0.17

%


393,219


158


0.16

%

Brokered certificates of deposits

15,838


95


2.39

%


17,832


163


3.64

%


33,849


318


3.73

%

Retail certificates of deposit

397,368


863


0.86

%


412,466


817


0.79

%


456,516


769


0.67

%

Total interest-bearing deposits

1,806,026


1,409


0.31

%


1,846,343


1,427


0.31

%


1,817,117


1,490


0.33

%













Short-term borrowings

213,852


207


0.39

%


143,814


109


0.30

%


141,081


74


0.21

%

Long-term borrowings

145,677


1,066


2.92

%


147,732


1,071


2.89

%


114,148


1,002


3.50

%

Total borrowed funds

359,529


1,273


1.41

%


291,546


1,180


1.61

%


255,229


1,076


1.68

%

Total interest-bearing liabilities

2,165,555


2,682


0.49

%


2,137,889


2,607


0.49

%


2,072,346


2,566


0.49

%













Non-interest-bearing deposits

743,389





709,432





716,339




Other liabilities

39,337





38,709





29,218




Total liabilities

2,948,281





2,886,030





2,817,903
















Stockholders' equity

438,238





438,606





422,701




Total liabilities and equity

$

3,386,519





$

3,324,636





$

3,240,604
















Net interest income/spread (b)


$

27,184


3.40

%



$

26,620


3.40

%



$

26,379


3.42

%

Net interest margin (b)



3.54

%




3.54

%




3.56

%













(a) Average balances are based on carrying value.

(b) Interest income and yields are presented on a fully tax-equivalent basis using a 35% federal statutory tax rate.

(c) Average balances include nonaccrual, impaired loans and loans held-for-sale.  Interest income includes interest earned and received on nonaccrual loans prior to the loans being placed on nonaccrual status and related interest income on loans originated for sale prior to the loan being sold.  Loan fees included in interest income were immaterial for all periods presented.

 

 


Year Ended


December 31, 2016


December 31, 2015

(in $000's)

Balance

Income/

Expense

Yield/ Cost


Balance

Income/

Expense

Yield/ Cost

Assets








Short-term investments

$

9,667


$

50


0.52

%


$

50,858


$

123


0.24

%

Other long-term investments



%


1,261


12


0.95

%

Investment securities (a)(b)

866,021


23,416


2.70

%


833,757


22,838


2.74

%

Gross loans (b)(c)

2,133,175


94,005


4.41

%


1,952,241


87,338


4.47

%

Allowance for loan losses

(17,564)





(19,174)




Total earning assets

2,991,299


117,471


3.90

%


2,818,943


110,311


3.91

%









Intangible assets

147,981





144,013




Other assets

181,167





148,897




Total assets

$

3,320,447





$

3,111,853












Liabilities and Equity








Interest-bearing deposits:








Savings accounts

$

434,140


$

231


0.05

%


$

388,802


$

209


0.05

%

Government deposit accounts

296,590


570


0.19

%


276,367


597


0.22

%

Interest-bearing demand accounts

260,788


217


0.08

%


222,868


178


0.08

%

Money market deposit accounts

401,693


702


0.17

%


384,258


614


0.16

%

Brokered certificates of deposits

24,231


846


3.49

%


36,303


1,352


3.72

%

Retail certificates of deposit

423,680


3,376


0.80

%


465,861


3,256


0.70

%

Total interest-bearing deposits

1,841,122


5,942


0.32

%


1,774,459


6,206


0.35

%









Short-term borrowings

159,169


508


0.32

%


100,437


182


0.18

%

Long-term borrowings

131,386


4,129


3.14

%


135,248


4,333


3.20

%

Total borrowed funds

290,555


4,637


1.60

%


235,685


4,515


1.92

%

Total interest-bearing liabilities

2,131,677


10,579


0.50

%


2,010,144


10,721


0.53

%









Non-interest-bearing deposits

722,291





663,395




Other liabilities

33,813





31,018




Total liabilities

2,887,781





2,704,557












Stockholders' equity

432,666





407,296




Total liabilities and equity

$

3,320,447





$

3,111,853












Net interest income/spread (b)


$

106,892


3.40

%



$

99,590


3.38

%

Net interest margin (b)



3.54

%




3.53

%









(a) Average balances are based on carrying value.

(b) Interest income and yields are presented on a fully tax-equivalent basis using a 35% federal statutory tax rate.

(c) Average balances include nonaccrual, impaired loans and loans held-for-sale.  Interest income includes interest earned and received on nonaccrual loans prior to the loans being placed on nonaccrual status and related interest income on loans originated for sale prior to the loan being sold.  Loan fees included in interest income were immaterial for all periods presented.

 

 

 

NON-GAAP FINANCIAL MEASURES


The following non-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. The following tables summarize the non-GAAP financial measures derived from amounts reported in Peoples' consolidated financial statements:



Three Months Ended


Year Ended


December 31,


September 30,


December 31,


December 31,

(in $000's)

2016


2016


2015


2016


2015











Core non-interest income:










Total non-interest income

$

12,111



$

13,538



$

12,101



$

51,070



$

47,441


Plus: System upgrade revenue waived

85







85




Core non-interest income

$

12,196



$

13,538



$

12,101



$

51,155



$

47,441





Three Months Ended


Year Ended


December 31,


September 30,


December 31,


December 31,

(in $000's)

2016


2016


2015


2016


2015











Core non-interest expenses:










Total non-interest expense

$

27,282



$

26,842



$

27,277



$

106,911



$

115,081


Less: System upgrade costs

746



423





1,259




Less: acquisition-related costs





838





10,722


Less: pension settlement charges





5





459


Less: other non-core charges





407





592


Core non-interest expenses

$

26,536



$

26,419



$

26,027



$

105,652



$

103,308





Three Months Ended


Year Ended


December 31,


September 30,


December 31,


December 31,

(in $000's)

2016


2016


2015


2016


2015











Efficiency ratio:










Total non-interest expense

$

27,282



$

26,842



$

27,277



$

106,911



$

115,081


Less: Amortization of other intangible assets

1,007



1,008



1,133



4,030



4,077


Adjusted non-interest expense

26,275



25,834



26,144



102,881



111,004












Total non-interest income

12,111



13,538



12,101



51,070



47,441












Net interest income

26,667



26,123



25,864



104,865



97,612


Add: Fully tax-equivalent adjustment

517



497



515



2,027



1,978


Net interest income on a fully taxable-equivalent basis

27,184



26,620



26,379



106,892



99,590












Adjusted revenue

$

39,295



$

40,158



$

38,480



$

157,962



$

147,031












Efficiency ratio

66.87

%


64.33

%


67.94

%


65.13

%


75.50

%











Efficiency ratio adjusted for non-core items:









Core non-interest expenses

$

26,536



$

26,419



$

26,027



$

105,652



$

103,308


Less: Amortization of other intangible assets

1,007



1,008



1,133



4,030



4,077


Adjusted non-interest expense

25,529



25,411



24,894



101,622



99,231












Core non-interest income

$

12,196



$

13,538



$

12,101



$

51,155



$

47,441


Net interest income on a fully taxable-equivalent basis

27,184



26,620



26,379



106,892



99,590












Adjusted core revenue

$

39,380



$

40,158



$

38,480



$

158,047



$

147,031












Efficiency ratio adjusted for non-core items

64.83

%


63.28

%


64.69

%


64.30

%


67.49

%




At or For the Three Months Ended


December 31,


September 30,


June 30,


March 31,


December 31,

(in $000's)

2016


2016


2016


2016


2015











Tangible Equity:










Total stockholders' equity, as reported

$

435,261



$

440,637



$

437,753



$

428,486



$

419,789


Less: goodwill and other intangible assets

146,018



147,005



147,971



148,997



149,617


Tangible equity

$

289,243



$

293,632



$

289,782



$

279,489



$

270,172












Tangible Assets:










Total assets, as reported

$

3,432,348



$

3,363,585



$

3,333,455



$

3,294,929



$

3,258,970


Less: goodwill and other intangible assets

146,018



147,005



147,971



148,997



149,617


Tangible assets

$

3,286,330



$

3,216,580



$

3,185,484



$

3,145,932



$

3,109,353












Tangible Book Value per Common Share:










Tangible equity

$

289,243



$

293,632



$

289,782



$

279,489



$

270,172


Common shares outstanding

18,200,067



18,195,986



18,185,708



18,157,932



18,404,864












Tangible book value per common share

$

15.89



$

16.14



$

15.93



$

15.39



$

14.68












Tangible Equity to Tangible Assets Ratio:





Tangible equity

$

289,243



$

293,632



$

289,782



$

279,489



$

270,172


Tangible assets

$

3,286,330



$

3,216,580



$

3,185,484



$

3,145,932



$

3,109,353












Tangible equity to tangible assets

8.80

%


9.13

%


9.10

%


8.88

%


8.69

%




Three Months Ended


Year Ended


December 31,


September 30,


December 31,


December 31,

(in $000's)

2016


2016


2015


2016


2015











Pre-Provision Net Revenue:










Income before income taxes

$

10,744



$

11,448



$

3,008



$

45,282



$

14,816


Add: provision for loan losses

711



1,146



7,238



3,539



14,097


Add: net loss on debt extinguishment







707



520


Add: net loss on loans held-for-sale and OREO

33





397



34



529


Add: net loss on securities transactions



1





1




Add: net loss on other assets

76



224



100



427



739


Less: net gain on securities transactions

68





56



931



729


Less: net gain on other assets







35




Pre-provision net revenue

$

11,496



$

12,819



$

10,687



$

49,024



$

29,972












Pre-provision net revenue

$

11,496



$

12,819



$

10,687



$

49,024



$

29,972


Total average assets

3,386,519



3,324,636



3,240,604



3,320,447



3,111,853












Pre-provision net revenue to total average assets (annualized)

1.35

%


1.53

%


1.31

%


1.48

%


0.96

%

 

 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/peoples-bancorp-inc-announces-4th-quarter-earnings-and-record-full-year-net-income-for-2016-300398037.html

SOURCE Peoples Bancorp Inc.

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