Peoples Bancorp Inc. Announces 4th Quarter And Full Year 2014 Earnings
Filed by
Pursuant to Rule 425 Under the Securities Act of 1933
And Deemed Filed Pursuant to Rule 14a-12
Under the Securities Exchange Act of 1934
Issuing Company:
Registration Statement on Form S-4 File No. 333-199152
Commission File No.: 000-23134
Summary fourth quarter and full year 2014 results:
- Diluted earnings per common share were
$0.28 for the quarter and$1.35 for the year.- Diluted earnings per common share were reduced by
$0.10 for the quarter and$0.38 for the year due to:- Pre-tax acquisition-related costs incurred by Peoples of
$1.9 million during the quarter, and$5.1 million during the year. - Pension settlement charges of
$17,000 for the quarter, and$1.4 million for the year. - Other one-time expenses incurred by Peoples of
$398,000 during the quarter, and$598,000 for the year.
- Pre-tax acquisition-related costs incurred by Peoples of
- The 1,847,826 common shares sold to fund, in part, the cash consideration for the NB&T acquisition adversely impacted diluted earnings per share by
$0.05 for the quarter and$0.08 for the year.
- Diluted earnings per common share were reduced by
- Total revenue increased 22% for the quarter and 18% for the year compared to the prior year periods.
- Net interest income and net interest margin were the main drivers of the growth.
- Net interest income increased
$4.5 million for the quarter and$14.1 million for the year. - Acquisition accretion income, net of amortization expense, added
$1.2 million to fourth quarter 2014 net interest income, and$2.6 million for the year. - Net interest margin expanded to 3.53% for the quarter and 3.45% for the year.
- Net interest income increased
- Insurance revenues increased 11%, or
$1.4 million , for the year compared to the prior year. - Trust and investment revenues grew 7% for the quarter and 8% for the year compared to prior year periods.
- Net interest income and net interest margin were the main drivers of the growth.
- Operating expenses were higher than in prior periods but in line with Peoples' expectations.
- Acquisition costs were 8% of total operating expenses for the quarter and 6% for the year.
- Salaries in 2014 increased due to a 28% increase in full-time equivalent employees since
December 31, 2013 . - Employee benefit costs for 2014 increased due largely to additional pension settlement charges and medical plan expenses.
- Period-end total loan balances reflected 12% organic growth for the year.
- Commercial lending generated 12% organic growth for the year.
- Organic consumer loan balances grew 11% for the year, primarily due to non-mortgage balances.
- Organic growth during 2014 was supplemented by the Midwest, Ohio Heritage and
North Akron acquisitions. - Average loan balances for the quarter were up 38% compared to fourth quarter 2013, and 30% for the full year.
- Asset quality trends remained favorable in 2014; recoveries exceeded charge-offs in the quarter and for the year.
- Gross recoveries exceeded charge-offs by
$197,000 for the quarter and$477,000 for the year. - The impact to earnings was a provision for loan losses of
$128,000 for the quarter and$339,000 for the year. - Allowance for loan losses was 1.48% of originated loans at
December 31, 2014 , versus 1.57% at year-end 2013.
- Gross recoveries exceeded charge-offs by
- Retail deposit balances grew during the quarter and year, largely the result of acquisitions.
- Growth during the quarter was the result of the
North Akron acquisition. - Quarterly organic retail balances were impacted by seasonal declines in governmental deposits.
- Organic growth during 2014 for non-interest-bearing deposits was
$78 million , which contributed to the overall retail deposit growth of 2%. - Non-interest-bearing deposits continued to comprise over 25% of Peoples' total deposits.
- Growth during the quarter was the result of the
"This past year has been a busy one for our team, as we have made great strides in growing the company and building long-term shareholder value. The most notable accomplishments were completing three acquisitions, in consecutive quarters, with our fourth to be completed in the first quarter of 2015. We are pleased with our fourth quarter and full year 2014 results," said
Sulerzyski continued, "On the expense front, we continued to build the infrastructure to support the initiatives within the company, most recently growth through acquisitions. As we enter new markets, we seek to attract sales talent to better serve the markets, as well as allow us to offer our wide array of products and services. Even with the investments made during the year, we were able to grow revenue slightly more than expenses, excluding the one-time expenses. When there is a pause in the acquisitions, and the noise is out of the numbers, one will be able to see more clearly the positive impact the initiatives have had on the company. We are pleased with the acquisitions completed to date, eager to close the NB&T acquisition, and excited about the opportunities that lie ahead."
During the fourth quarter, Peoples completed its merger with
As previously announced, on
Fourth quarter 2014 net interest income was
"Net interest income and net interest margin both continued to benefit from loan growth, acquisitions and asset mix changes, and were in line with our expectations," said
Total non-interest income was up 9% compared to the fourth quarter of 2013 and 8% for the full year. The growth for the quarter was largely attributable to electronic banking income and trust and investment income, which were up 11% and 7%, respectively. For the year, insurance income grew 11%, or
"One of our long-term strategic goals continues to be to maintain a diversified revenue stream with 35-40% fee-based income," said Sulerzyski. "The recent change in the revenue stream has been the result of the bank acquisitions completed during 2014, with no fee-based acquisitions. We continue to also seek opportunities to acquire both insurance and wealth management businesses."
Fourth quarter 2014 non-interest expenses totaled
Period-end organic loan balances grew at an annualized rate of 5% for the quarter and 12% for the year. During the quarter, commercial loan balances grew
"Loan production exceeded our expectations for the year, as we had budgeted between 8% and 10% organic growth, and ended 2014 with 12% organic growth. Non-mortgage consumer and commercial made the largest contributions during the year, with 11% and 15% growth, respectively," said Sulerzyski.
During the quarter, Peoples received a sizable commercial real estate loan recovery that more than off-set the charge-offs incurred in the other loan categories, resulting in net recoveries of
Peoples' retail deposits grew
"Overall, 2014 was a solid year for the company as we executed on our strategy and had success along several fronts, including double digit organic loan growth, expansion of net interest income and net interest margin, fee-based revenue growth, and the hiring and retention of talent that will allow us to continue to execute on our strategy," summarized Sulerzyski. "In 2015, we plan to build upon the momentum we generated in 2014. Key priorities will include continued loan growth, growth through acquisitions, growing fee-based revenue, and generating positive operating leverage. We remain confident in our ability to continue to grow and generate long-term value for our customers and shareholders."
Conference Call to Discuss Earnings:
Peoples will conduct a facilitated conference call to discuss fourth quarter and full year 2014 results of operations today at
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
- Tangible assets and tangible equity measures are non-GAAP since they exclude the impact of 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 non-interest income minus non-interest expense. This measure is non-GAAP since it excludes (recovery of) 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".
Important Information for Investors and Shareholders:
This news release does not constitute an offer to sell or the solicitation of an offer to buy securities of Peoples. Peoples has filed a registration statement on Form S-4 and will file other documents regarding the proposed merger with NB&T referenced in this news release with the
Peoples and NB&T and certain of their respective directors and executive officers may be deemed to be participants in the solicitation of proxies from the shareholders of Peoples and NB&T in connection with the proposed merger. Information about the directors and executive officers of Peoples is set forth in the proxy statement for Peoples' 2014 annual meeting of shareholders, as filed with the
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", "could", "may", "feel", "expect", "believe", "plan", 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 success, impact, and timing of the implementation of Peoples' business strategies, including the successful integration of recently completed acquisitions and the expansion of consumer lending activity; (2) Peoples' ability to integrate the Midwest, Ohio Heritage and
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
As required by U.S. GAAP, Peoples is required to evaluate the impact of subsequent events through the issuance date of its
PER COMMON SHARE DATA AND SELECTED RATIOS |
|||||||||||||||||||
Three Months Ended |
Year Ended |
||||||||||||||||||
|
|
|
|
||||||||||||||||
2014 |
2014 |
2013 |
2014 |
2013 |
|||||||||||||||
PER COMMON SHARE: |
|||||||||||||||||||
Earnings per share: |
|||||||||||||||||||
Basic |
$ |
0.29 |
$ |
0.33 |
$ |
0.48 |
$ |
1.36 |
$ |
1.65 |
|||||||||
Diluted |
0.28 |
0.32 |
0.47 |
1.35 |
1.63 |
||||||||||||||
Cash dividends declared per share |
0.15 |
0.15 |
0.14 |
0.60 |
0.54 |
||||||||||||||
Book value per share |
22.92 |
22.56 |
20.89 |
22.92 |
20.89 |
||||||||||||||
Tangible book value per share (a) |
15.57 |
15.50 |
13.57 |
15.57 |
13.57 |
||||||||||||||
Closing stock price at end of period |
$ |
25.93 |
$ |
23.75 |
$ |
22.51 |
$ |
25.93 |
$ |
<span class="prnews_span">22.51 |
|||||||||
SELECTED RATIOS: |
|||||||||||||||||||
Return on average equity (b) |
5.03 |
% |
5.84 |
% |
9.09 |
% |
6.16 |
% |
7.92 |
% |
|||||||||
Return on average assets (b) |
0.66 |
% |
0.73 |
% |
1.01 |
% |
0.74 |
% |
0.91 |
% |
|||||||||
Efficiency ratio (c) |
76.55 |
% |
77.82 |
% |
71.80 |
% |
75.37 |
% |
71.90 |
% |
|||||||||
Pre-provision net revenue to average assets (b)(d) |
0.99 |
% |
0.96 |
% |
1.29 |
% |
1.10 |
% |
1.26 |
% |
|||||||||
Net interest margin (b)(e) |
3.53 |
% |
3.49 |
% |
3.43 |
% |
3.45 </td> |
% |
3.23 |
% |
|||||||||
Dividend payout ratio (f) |
53.22 |
% |
40.08 |
% |
29.61 |
% |
43.10 |
% |
33.20 |
% |
|||||||||
(a) |
This amount represents a non-GAAP financial measure since it excludes the balance sheet impact of 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) |
Non-interest expense (less intangible amortization) as a percentage of fully tax-equivalent net interest income plus non-interest income (less securities and asset disposal gains/losses). |
(d) |
ratio represents a non-GAAP financial measure since it excludes the recovery of or provision for loan losses and net gains or losses on security transactions, debt extinguishment, loans held-for-sale and other real estate owned, and other assets. 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. |
(f) |
Dividends declared on common shares as a percentage of net income. |
CONSOLIDATED STATEMENTS OF INCOME |
|||||||||||||||||||
Three Months Ended |
Year Ended |
||||||||||||||||||
|
|
|
|
||||||||||||||||
(in |
2014 |
2014 |
2013 |
2014 |
2013 |
||||||||||||||
Interest income |
$ |
22,868 |
$ |
20,566 |
$ |
18,385 |
$ |
80,200 |
$ |
67,071 |
|||||||||
Interest expense |
2,744 |
2,707 |
2,806 |
10,694 |
11,686 |
||||||||||||||
Net interest income |
20,124 |
17,859 |
15,579 |
69,506 |
55,385 |
||||||||||||||
Provision for (recovery of) loan losses |
128 |
(380) |
(964) |
339 |
(4,410) |
||||||||||||||
Net interest income after provision for (recovery of) loan losses |
19,996 |
18,239 |
16,543 |
69,167 |
59,795 |
||||||||||||||
Net gain on securities transactions |
238 |
124 |
46 |
398 |
489 |
||||||||||||||
Gain on debt extinguishment |
— |
67 |
— |
67 |
— |
||||||||||||||
Net (loss) gain on loans held-for-sale and other real estate owned |
(95) |
9 |
— |
(68) |
86 |
||||||||||||||
Net loss on other assets |
(51) |
(185) |
(125) |
(430) |
(241) |
||||||||||||||
Non-interest income: |
|||||||||||||||||||
Insurance income |
2,876 |
3,169 |
2,842 |
13,604 |
12,201 |
||||||||||||||
Deposit account service charges |
2,386 |
2,449 |
2,285 |
9,173 |
8,764 |
||||||||||||||
Trust and investment income |
2,029 |
1,876 |
1,897 |
7,685 |
7,122 |
||||||||||||||
Electronic banking income |
1,846 |
1,695 |
1,664 |
6,642 |
6,191 |
||||||||||||||
Mortgage banking income |
365 |
334 |
316 |
1,237 |
1,759 |
||||||||||||||
Other non-interest income |
676 |
338 |
342 |
1,712 |
1,183 |
||||||||||||||
Total non-interest income |
10,178 |
9,861 |
9,346 |
40,053 |
37,220 |
||||||||||||||
Non-interest expense: |
|||||||||||||||||||
Salaries and employee benefits costs |
12,893 |
11,667 |
9,463 |
46,593</span> |
36,472 |
||||||||||||||
Professional fees |
2,024 |
1,451 |
1,123 |
5,649 |
4,207 |
||||||||||||||
Net occupancy and equipment |
2,017 |
2,267 |
1,719 |
7,839 |
6,840 |
||||||||||||||
Electronic banking expense |
1,213 |
1,283 |
941 |
4,529 |
3,586 |
||||||||||||||
Marketing expense |
759 |
668 |
<p class="prnews_p">742 |
2,299 |
2,301 |
||||||||||||||
Data processing and software |
626 |
673 |
533 |
2,424 |
2,012 |
||||||||||||||
Amortization of intangible assets |
516 |
367 |
274 |
1,428 |
807 |
||||||||||||||
Communication expense |
472 |
421 |
333 |
1,642 |
1,339 |
||||||||||||||
|
382 |
331 |
282 |
1,260 |
1,036 |
||||||||||||||
Foreclosed real estate and other loan expenses |
280 |
177 |
151 |
789 |
654 |
||||||||||||||
Franchise taxes |
177 |
388 |
405 |
1,392 |
1,643 |
||||||||||||||
Other non-interest expense |
2,622 |
2,514 |
2,429 |
9,165 |
7,368 |
||||||||||||||
Total non-interest expense |
23,981 |
22,207 |
18,395 |
85,009 |
68,265 |
||||||||||||||
Income before income taxes |
6,285 |
5,908 |
7,415 |
24,178 |
29,084 |
||||||||||||||
Income tax expense |
2,040 |
1,729 |
2,301 |
7,494 |
11,510 |
||||||||||||||
Net income |
$ |
4,245 |
$ |
4,179 |
$ |
5,114 |
$ |
16,684 |
$ |
17,574 |
|||||||||
PER COMMON SHARE DATA: |
|||||||||||||||||||
Earnings per share – Basic |
$ |
0.29 |
$ |
0.33 |
$ |
0.48 |
$ |
1.36 |
$ |
1.65 |
|||||||||
Earnings per share – Diluted |
$ |
0.28 |
$ |
0.32 |
$ |
0.47 |
$ |
1.35 |
$ |
1.63 |
|||||||||
Cash dividends declared per share |
$ |
0.15 |
$ |
0.15 |
$ |
0.14 |
$ |
0.60 |
$ |
0.54 |
|||||||||
Weighted-average shares outstanding – Basic |
14,660,314 |
<span class="prnews_span">12,632,341 |
10,602,266 |
12,183,352 |
10,581,222 |
||||||||||||||
Weighted-average shares outstanding – Diluted |
14,809,289 |
12,765,880 |
10,718,465 |
12,306,224 |
10,679,417 |
||||||||||||||
Actual shares outstanding (end of period) |
14,836,727 |
14,150,279 |
10,605,782 |
14,836,727 |
10,605,782 |
CONSOLIDATED BALANCE SHEETS |
|||||||
|
|||||||
(in |
2014 |
2013 |
|||||
Assets |
|||||||
Cash and cash equivalents: |
|||||||
Cash and due from banks |
$ |
42,230 |
$ |
36,016 |
|||
Interest-bearing deposits in other banks |
19,224 |
17,804 |
|||||
Total cash and cash equivalents |
61,454 |
53,820 |
|||||
Available-for-sale investment securities, at fair value (amortized cost of |
|||||||
636,880 |
606,108 |
||||||
Held-to-maturity investment securities, at amortized cost (fair value of |
|||||||
48,468 |
49,222 |
||||||
Other investment securities, at cost |
28,311 |
25,196 |
|||||
Total investment securities |
713,659 |
680,526 |
|||||
Loans, net of deferred fees and costs |
1,620,898 |
1,196,234 |
|||||
Allowance for loan losses |
(17,881) |
(17,065) |
|||||
Net loans |
1,603,017 |
1,179,169 |
|||||
Loans held-for-sale |
4,374 |
1,688 |
|||||
Bank premises and equipment, net of accumulated depreciation |
40,335 |
29,809 |
|||||
Goodwill |
98,562 |
70,520 |
|||||
Other intangible assets |
10,596 |
7,083 |
|||||
Other assets |
35,772 |
36,493 |
|||||
Total assets |
$ |
2,567,769 |
$ |
2,059,108 |
|||
Liabilities |
|||||||
Deposits: |
|||||||
Non-interest-bearing deposits |
$ |
493,162 |
$ |
409,891 |
|||
Interest-bearing deposits </td> |
1,439,912 |
1,170,867 |
|||||
Total deposits |
1,933,074 |
1,580,758 |
|||||
Short-term borrowings |
88,277 |
113,590 |
|||||
Long-term borrowings |
179,083 |
121,826 |
|||||
Accrued expenses and other liabilities |
27,217 |
21,381 |
|||||
Total liabilities |
2,227,651 |
1,837,555 |
|||||
Stockholders' Equity |
|||||||
Preferred stock, no par value (50,000 shares authorized, no shares issued at |
|||||||
— |
— |
||||||
Common stock, no par value (24,000,000 shares authorized, 15,426,973 shares issued at |
|||||||
265,742 |
168,869 |
||||||
Retained earnings |
90,391 |
80,898 |
|||||
Accumulated comprehensive loss, net of deferred income taxes |
(1,301) |
(13,244) |
|||||
Treasury stock, at cost (590,246 shares at |
|||||||
(14,714) |
(14,970) |
||||||
Total stockholders' equity |
340,118 |
221,553 |
|||||
Total liabilities and stockholders' equity |
$ |
2,567,769 |
$ |
2,059,108 |
|||
SELECTED FINANCIAL INFORMATION |
|||||||||||||||
|
|
|
|
|
|||||||||||
(in |
2014 |
2014 |
2014 |
2014 |
2013 |
||||||||||
Loan Portfolio |
|||||||||||||||
Commercial real estate, construction |
$ |
38,952 |
$ |
25,877 |
$ |
56,421 |
$ |
55,935 |
$ |
47,539 |
|||||
Commercial real estate, other |
556,135 |
543,928 |
463,644 |
458,580 |
450,170 |
||||||||||
Commercial and industrial |
280,031 |
261,484 |
254,428 |
233,329 |
232,754 |
||||||||||
Residential real estate |
479,443 |
411,089 |
313,374 |
268,794 |
268,617 |
||||||||||
Home equity lines of credit |
80,695 |
75,234 |
61,838 |
60,319 |
60,076 |
||||||||||
Consumer |
182,709 |
179,473 |
162,918 |
143,541 |
135,018 |
||||||||||
Deposit account overdrafts |
2,933 |
2,669 |
5,282 |
6,008 |
2,060 |
||||||||||
Total loans |
$ |
1,620,898 |
$ |
1,499,754 |
$ |
1,317,905 |
$ |
1,226,506 |
$ |
1,196,234 |
|||||
Total acquired loans (a) |
$ |
408,884 |
$ |
302,972 |
$ |
147,459 |
$ |
95,373 |
$ |
110,738 |
|||||
Deposit Balances |
|||||||||||||||
Interest-bearing deposits: |
|||||||||||||||
Retail certificates of deposit |
$ |
432,563 |
$ |
408,868 |
$ |
373,072 |
$ |
355,345 |
$ |
363,226 |
|||||
Money market deposit accounts |
337,387 |
309,721 |
268,939 |
|
275,801 |
||||||||||
Governmental deposit accounts |
161,305 |
183,213 |
165,231 |
177,590 |
132,379 |
||||||||||
Savings accounts |
295,307 |
262,949 |
244,472 |
227,695 |
215,802 |
||||||||||
Interest-bearing demand accounts |
173,659 |
156,867 |
142,170 |
133,508 |
134,618 |
||||||||||
Total retail interest-bearing deposits |
1,400,221 |
1,321,618 |
1,193,884 |
1,170,364 |
1,121,826 |
||||||||||
Brokered certificates of deposits </td> |
39,691 |
39,671 |
40,650 |
45,072 |
49,041 |
||||||||||
Total interest-bearing deposits |
1,439,912 |
1,361,289 |
1,234,534 |
1,215,436 |
1,170,867 |
||||||||||
Non-interest-bearing deposits |
493,162 |
500,330 |
426,384 |
417,629 |
409,891 |
||||||||||
Total deposits |
$ |
1,933,074 |
$ |
1,861,619 |
$ |
1,660,918 |
$ |
1,633,065 |
$ |
1,580,758 |
|||||
Asset Quality |
|||||||||||||||
Nonperforming assets (NPAs): |
|||||||||||||||
Loans 90+ days past due and accruing |
$ |
2,799 |
$ |
2,565 |
$ |
3,438 |
$ |
159 |
$ |
1,240 |
|||||
Nonaccrual loans |
8,406 |
6,322 |
7,867 |
8,806 |
5,934 |
||||||||||
Total nonperforming loans (NPLs) |
11,205 |
8,887 |
<span class="prnews_span">11,305 |
8,965 |
7,174 |
||||||||||
Other real estate owned (OREO) |
946 |
1,045 |
915 |
773 |
893 |
||||||||||
Total NPAs |
$ |
12,151 |
$ |
9,932 |
$ |
12,220 |
$ |
9,738 |
$ |
8,067 |
|||||
Allowance for loan losses as a percent of NPLs (b)(c) |
159.58 |
% |
197.54 |
% |
153.78 |
% |
188.19 |
% |
237.87 |
% |
|||||
NPLs as a percent of total loans (b)(c) |
0.69 |
% |
0.59 |
% |
0.86 |
% |
0.73 |
% |
0.60 |
% |
|||||
NPAs as a percent of total assets (b)(c) |
0.47 |
% |
0.41 |
% |
0.56 |
% |
0.47 |
% |
0.39 |
% |
|||||
NPAs as a percent of total loans and OREO (b)(c) |
0.75 |
% |
0.66 |
% |
0.92 |
% |
0.79 |
% |
0.67 |
% |
|||||
loans, net of deferred fees and costs (b) |
1.48 |
% |
1.47 |
% |
1.49 |
% |
1.49 |
% |
1.57 |
% |
|||||
Capital Information (d) |
|||||||||||||||
Tier 1 risk-based capital ratio |
14.32 |
% |
14.53 |
% |
12.33 |
% |
12.56 |
% |
12.42 |
% |
|||||
Total risk-based capital ratio (Tier 1 and Tier 2) |
15.48 |
% |
15.73 |
% |
13.65 |
% |
13.92 |
% |
13.78 |
% |
|||||
Leverage ratio |
9.92 |
% |
10.64 |
% |
8.76 |
% |
8.56 |
% |
8.52 |
% |
|||||
Tier 1 common capital |
$ |
241,707 |
$ |
232,720 |
$ |
177,394 |
$ |
170,677 |
$ |
166,217 |
|||||
Tier 1 capital |
241,707 |
232,720 |
177,394 |
170,677 |
166,217 |
||||||||||
Total capital (Tier 1 and Tier 2) |
261,371 |
251,977 |
196,426 |
189,145 |
184,457 |
||||||||||
Total risk-weighted assets |
$ |
1,687,968 |
$ |
1,601,664 |
$ |
1,438,683 |
$ |
1,358,691 |
$ |
1,338,811 |
|||||
Tangible equity to tangible assets (e) |
9.39 |
% |
9.40 |
% |
7.90 |
% |
7.66 |
% |
7.26 |
% |
(a) |
Includes all loans acquired in 2012 and thereafter. |
(b) |
Data presented as of the end of the period indicated. |
(c) |
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. |
(d) |
|
(e) |
These ratios represent non-GAAP financial measures since they exclude the balance sheet impact of intangible assets acquired through acquisitions on both total stockholders' equity and total assets. Additional information regarding the calculation of these ratios is included at the end of this news release. |
PROVISION FOR (RECOVERY OF) LOAN LOSSES INFORMATION |
|||||||||||||||||||
Three Months Ended |
Year Ended |
||||||||||||||||||
|
|
|
|
||||||||||||||||
(in |
2014 |
2014 |
2013 |
2014 |
2013 |
||||||||||||||
Provision for (Recovery of) Loan Losses </td> | |||||||||||||||||||
Provision for checking account overdrafts |
$ |
128 |
$ |
120 |
$ |
102 |
$ |
339 |
$ |
356 |
|||||||||
Recovery of other loan losses |
— |
(500) |
(1,066) |
— |
(4,766) |
||||||||||||||
Total provision for (recovery of) loan losses |
$ |
128 |
$ |
(380) |
(964) |
$ |
339 |
$ |
(4,410) |
||||||||||
Net (Recoveries) Charge-Offs |
|||||||||||||||||||
Gross charge-offs |
$ |
920 |
$ |
676 |
$ |
871 |
$ |
2,715 |
$ |
3,491 |
|||||||||
Recoveries |
1,117 |
1,228 |
1,998 |
3,192 |
7,155 |
||||||||||||||
Net recoveries |
$ |
(197) |
$ |
(552) |
$ |
(1,127) |
$ |
(477) |
$ |
(3,664) |
|||||||||
Net (Recoveries) Charge-Offs by Type |
|||||||||||||||||||
Commercial real estate, construction |
$ |
— |
$ |
— |
$ |
— |
$ |
— |
$ |
— |
|||||||||
Commercial real estate, other |
(870) |
(779) |
(1,455) |
(1,857) |
(4,786) |
||||||||||||||
Commercial and industrial |
141 |
(9) |
21 |
122 |
4 |
||||||||||||||
Residential real estate |
101 |
53 |
(55) |
309 |
85 |
||||||||||||||
Home equity lines of credit |
61 |
(2) |
(6) |
92 |
136 |
||||||||||||||
Consumer |
226 |
67 |
248 |
494 |
532 |
||||||||||||||
Deposit account overdrafts |
144 |
118 |
120 |
363 |
365 |
||||||||||||||
Total net recoveries |
$ |
(197) |
$ |
(552) |
$ |
(1,127) |
$ |
(477) |
$ |
(3,664) |
|||||||||
As a percent of average gross loans (annualized) |
(0.05)% |
(0.16)% |
(0.39)% |
(0.03)% |
(0.35)% |
||||||||||||||
SUPPLEMENTAL INFORMATION |
|||||||||||||||||||
|
|
|
<br /> |
|
|
||||||||||||||
(in |
2014 |
2014 |
2014 |
2014 |
2013 |
||||||||||||||
Trust assets under management |
$ |
1,022,189 |
$ |
999,822 |
$ |
1,014,865 |
$ |
995,861 |
$ |
1,000,171 |
|||||||||
Brokerage assets under management |
525,089 |
511,400 |
513,890 |
494,246 |
474,384 |
||||||||||||||
Mortgage loans serviced for others |
$ |
352,779 |
$ |
343,659 |
$ |
341,893 |
$ |
340,057 |
$ |
341,183 |
|||||||||
Employees (full-time equivalent) |
699 |
643 |
576 |
557 |
546 |
||||||||||||||
CONSOLIDATED AVERAGE BALANCE SHEETS AND NET INTEREST INCOME |
||||||||||||||||||||||||||
Three Months Ended |
||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||
(in |
Balance |
Income/ Expense |
Yield/ Cost |
Balance |
Income/ Expense |
Yield/ Cost |
Balance |
Income/ Expense |
Yield/ Cost |
|||||||||||||||||
Assets |
||||||||||||||||||||||||||
Short-term investments |
$ |
30,770 |
$ |
20 |
0.26 |
% |
$ |
16,401 |
$ |
5 |
0.12 |
% |
$ |
8,652 |
$ |
30 |
1.38 |
% |
||||||||
Other long-term investments |
1,453 |
4 |
1.09 |
% |
1,785 |
— |
— |
% |
2,948 |
2 |
0.27 |
% |
||||||||||||||
Investment securities (a)(b) |
719,833 |
4,961 |
2.76 |
% |
694,854 |
4,950 |
2.85 |
% |
691,365 |
5,040 |
2.92 |
% |
||||||||||||||
Gross loans (a) |
1,585,728 |
18,235 |
4.60 |
% |
1,392,440 |
15,957 |
4.58 |
% |
1,147,285 |
13,619 |
4.68 |
% |
||||||||||||||
Allowance for loan losses |
(17,495) |
(17,595) |
(17,439) |
|||||||||||||||||||||||
Total earning assets |
2,320,289 |
23,220 |
4.00 |
% |
2,087,885 |
20,912 |
4.00 |
% |
1,832,811 |
18,691 |
4.04 |
% |
||||||||||||||
Intangible assets |
107,002 |
88,466 |
77,025 |
|||||||||||||||||||||||
Other assets |
111,035 |
100,897 |
102,016 |
|||||||||||||||||||||||
Total assets |
$ |
2,538,326 |
$ |
2,277,248 |
$ |
2,011,852 |
||||||||||||||||||||
Liabilities and Equity |
||||||||||||||||||||||||||
Interest-bearing deposits: |
||||||||||||||||||||||||||
Savings accounts |
$ |
284,221 |
$ |
38 |
0.05 |
% |
$ |
253,328 |
$ |
35 |
0.05 |
% |
$ |
211,116 |
$ |
29 |
0.05 |
% |
Government deposit accounts |
173,845 |
113 |
0.26 |
% |
179,684 |
121 |
0.27 |
% |
141,181 |
131 |
0.37 |
% |
Interest-bearing demand accounts |
170,006 |
36 |
0.08 |
% |
148,611 |
31 |
0.08 |
% |
128,877 |
26 |
0.08 |
% |
||||||||||||||
Money market deposit accounts |
337,506 |
136 |
0.16 |
% |
287,866 |
117 |
0.16 |
% |
256,398 |
104 |
0.16 |
% |
||||||||||||||
Brokered certificates of deposits |
39,681 |
370 |
3.70 |
% |
40,508 |
381 |
3.73 |
% |
49,320 |
462 |
3.72 |
% |
||||||||||||||
Retail certificates of deposit |
431,534 |
865 |
0.80 |
% |
385,222 |
829 |
0.85 |
% |
360,733 |
890 |
0.98 |
% |
||||||||||||||
Total interest-bearing deposits |
1,436,793 |
1,558 |
0.43 |
% |
1,295,219 |
1,514 |
0.46 |
% |
1,147,625 |
1,642 |
0.57 |
% |
||||||||||||||
Short-term borrowings |
76,930 |
33 |
0.17 |
% |
92,773 |
46 |
0.20 |
% |
120,135 |
49 |
0.16 |
% |
||||||||||||||
Long-term borrowings |
175,045 |
1,154 |
2.63 |
% |
135,514 |
1,147 |
3.37 |
% |
123,713 |
1,115 |
3.58 |
% |
||||||||||||||
Total borrowed funds |
251,975 |
<p class="prnews_p">1,187 |
1.88 |
% |
228,287 |
1,193 |
2.08 |
% |
243,848 |
1,164 |
1.89 |
% |
||||||||||||||
Total interest-bearing liabilities |
1,688,768 |
2,745 |
0.65 |
% |
1,523,506 |
2,707 |
0.71 |
% |
1,391,473 |
2,806 |
0.80 |
% |
||||||||||||||
</td> | ||||||||||||||||||||||||||
Non-interest-bearing deposits |
493,901 |
449,177 |
370,962 |
|||||||||||||||||||||||
Other liabilities |
21,052 |
20,557 |
26,108 |
|||||||||||||||||||||||
Total liabilities |
2,203,721 |
1,993,240 |
1,788,543 |
|||||||||||||||||||||||
Stockholders' equity |
334,605 |
284,008 |
223,309 |
|||||||||||||||||||||||
Total liabilities and equity |
$ |
2,538,326 |
$ |
2,277,248 |
$ |
2,011,852 |
||||||||||||||||||||
Net interest income/spread (a) |
$ |
20,475 |
3.35 |
% |
$ |
18,205 |
3.29 |
% |
$ |
15,885 |
3.24 |
% |
||||||||||||||
Net interest margin (a) |
3.53 |
% |
3.49 |
% |
3.43 |
% |
||||||||||||||||||||
(a) Information presented on a fully tax-equivalent basis. |
||||||||||||||||||||||||||
(b) Average balances are based on carrying value. |
Year Ended |
|||||||||||||||||
|
|
||||||||||||||||
(in |
Balance |
Income/ Expense |
Yield/ Cost |
Balance |
Income/ Expense |
Yield/ Cost |
|||||||||||
Assets |
|||||||||||||||||
Short-term investments |
$ |
15,394 |
$ |
1 |
0.01 |
% |
$ |
16,154 |
$ |
94 |
0.59 |
% |
|||||
Other long-term investments |
1,913 |
8 |
0.42 |
% |
743 |
2 |
0.27 |
% |
|||||||||
Investment securities (a)(b) |
689,816 |
19,809 |
2.87 |
% |
697,371 |
19,487 |
2.79 |
% |
|||||||||
Gross loans (a) |
1,364,808 |
61,718 |
4.52 |
% |
1,046,371 |
48,688 |
4.62 |
% |
|||||||||
Allowance for loan losses |
(17,362) |
(17,935) |
|||||||||||||||
Total earning assets |
2,054,569 |
81,536 |
3.97 |
% |
1,742,704 |
68,271 |
3.90 |
% |
|||||||||
Intangible assets |
87,821 |
72,420 |
|||||||||||||||
Other assets |
98,144 |
117,243 |
<br /> | ||||||||||||||
Total assets |
$ |
2,240,534 |
$ |
1,932,367 |
|||||||||||||
Liabilities and Equity |
|||||||||||||||||
Interest-bearing deposits: |
|||||||||||||||||
Savings accounts |
$ |
247,419 |
$ |
135 |
0.05 |
% |
$ |
200,190 |
$ |
107 |
0.05 |
% |
|||||
Government deposit accounts |
165,622 |
470 |
0.28 |
% |
146,955 |
642 |
0.44 |
% |
|||||||||
Interest-bearing demand accounts |
148,687 |
124 |
0.08 |
% |
125,984 |
101 |
0.08 |
% |
|||||||||
Money market deposit accounts |
293,214 |
472 |
0.16 |
% |
259,226 |
379 |
0.15 |
% |
|||||||||
Brokered certificates of deposits |
42,598 |
1,568 |
3.68 |
% |
51,287 |
1,871 |
3.65 |
% |
|||||||||
Retail certificates of deposit |
383,574 |
3,338 |
0.87 |
% |
358,918 |
3,952 |
1.10 |
% |
|||||||||
Total interest-bearing deposits |
1,281,114 |
6,107 |
0.48 |
% |
1,142,560 |
7,052 |
0.62 |
% |
|||||||||
Short-term borrowings |
96,040 |
146 |
0.15 |
% |
81,294 |
114 |
0.14 |
% |
|||||||||
Long-term borrowings |
138,171 |
4,442 |
3.21 |
% |
126,100 |
4,520 |
3.57 |
% |
|||||||||
Total borrowed funds |
234,211 |
4,588 |
1.96 |
% |
207,394 |
4,634 |
2.23 |
% |
|||||||||
Total interest-bearing liabilities |
1,515,325 |
10,695 |
0.71 |
% |
1,349,954 |
11,686 |
0.86 |
% |
|||||||||
Non-interest-bearing deposits |
433,798 |
335,637 |
|||||||||||||||
Other liabilities |
20,722 |
24,865 |
|||||||||||||||
Total liabilities |
1,969,845 |
1,710,456 |
|||||||||||||||
Stockholders' equity |
270,689 |
221,911 |
|||||||||||||||
Total liabilities and equity |
$ |
2,240,534 |
$ |
1,932,367 |
|||||||||||||
Net interest income/spread (a) |
$ |
70,841 |
3.26 |
% |
$ |
56,585 |
3.04 |
% |
|||||||||
Net interest margin (a) |
3.45 |
% |
3.23 |
% |
|||||||||||||
(a) Information presented on a fully tax-equivalent basis. |
|||||||||||||||||
(b) Average balances are based on carrying value. |
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:
At or For the Three Months Ended |
||||||||||||||||||||
|
|
|
|
|
||||||||||||||||
(in |
2014 |
2014 |
2014 |
2014 |
2013 |
|||||||||||||||
Tangible Equity: |
||||||||||||||||||||
Total stockholders' equity, as reported |
$ |
340,118 |
$ |
319,282 |
$ |
244,270 |
$ |
230,576 |
$ |
221,553 |
||||||||||
Less: goodwill and other intangible assets |
109,158 |
100,016 |
79,626 |
77,288 |
77,603 |
|||||||||||||||
Tangible equity |
$ |
230,960 |
$ |
219,266 |
$ |
164,644 |
$ |
153,288 |
$ |
143,950 |
||||||||||
Tangible Assets: |
||||||||||||||||||||
Total assets, as reported |
$ |
2,567,769 |
$ |
2,432,903 |
$ |
2,163,274 |
$ |
2,078,253 |
$ |
2,059,108 |
||||||||||
Less: goodwill and other intangible assets |
109,158 |
100,016 |
79,626 |
77,288 |
77,603 |
|||||||||||||||
Tangible assets |
$ |
2,458,611 |
$ |
2,332,887 |
$ |
2,083,648 |
$ |
2,000,965 |
$ |
1,981,505 |
||||||||||
Tangible Book Value per Common Share: |
||||||||||||||||||||
Tangible equity |
$ |
230,960 |
$ |
219,266 |
$ |
164,644 |
$ |
153,288 |
$ |
143,950 |
||||||||||
Common shares outstanding |
14,836,727 |
14,150,279 |
10,926,436 |
10,657,569 |
10,605,782</p> |
|||||||||||||||
Tangible book value per common share |
$ |
15.57 |
$ |
15.50 |
$ |
15.07 |
$ |
14.38 |
$ |
13.57 |
||||||||||
Tangible Equity to Tangible Assets Ratio: |
||||||||||||||||||||
Tangible equity |
$ |
230,960 |
$ |
219,266 |
$ |
164,644 |
$ |
153,288 |
$ |
143,950 |
||||||||||
Tangible assets |
$ |
2,458,611 |
$ |
2,332,887 |
$ |
2,083,648 |
$ |
2,000,965 |
$ |
1,981,505 |
||||||||||
Tangible equity to tangible assets |
9.39 |
% |
9.40 |
% |
7.90 |
% |
7.66 |
% |
7.26 |
% |
||||||||||
Three Months Ended |
Year Ended |
|||||||||||||||||||
|
|
|
|
|||||||||||||||||
(in |
2014 |
2014 |
2013 |
2014 |
2013 |
|||||||||||||||
Pre-Provision Net Revenue: |
||||||||||||||||||||
Income before income taxes |
$ |
6,285 |
$ |
5,908 |
$ |
7,415 |
$ |
24,178 |
$ |
29,084 |
||||||||||
Add: provision for loan losses |
128 |
— |
— |
339 |
— |
|||||||||||||||
Add: net loss on loans held-for-sale and OREO |
95 |
— |
— |
95 |
— |
|||||||||||||||
Add: net loss on securities transactions |
— |
— |
— |
30 |
— |
|||||||||||||||
Add: net loss on other assets |
51 |
185 |
125 |
430 |
241 |
|||||||||||||||
Less: recovery of loan losses |
— |
380 |
964 |
— |
4,410 |
|||||||||||||||
Less: net gain on debt extinguishment |
— |
67 |
— |
67 |
— |
|||||||||||||||
Less: net gain on loans held-for-sale and OREO |
— |
9 |
— |
27 |
86 |
|||||||||||||||
Less: net gain on securities transactions |
238 |
124 |
46 |
428 |
489 |
|||||||||||||||
Pre-provision net revenue |
$ |
6,321 |
$ |
5,513 |
$ |
6,530 |
$ |
24,550 |
$ |
24,340 |
||||||||||
Pre-provision net revenue |
$ |
6,321 |
$ |
5,513 |
$ |
6,530 |
$ |
24,550 |
$ |
24,340 |
||||||||||
Total average assets |
2,538,326 |
2,277,248 |
2,011,852 |
2,240,534 |
1,932,367 |
|||||||||||||||
Pre-provision net revenue to total average assets (annualized) |
0.99 |
% |
0.96 |
% |
1.29 |
% |
1.10 |
% |
1.26 |
% |
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/peoples-bancorp-inc-announces-4th-quarter-and-full-year-2014-earnings-300026180.html
SOURCE
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