Peoples Bancorp Inc. · NASDAQ:PEBO
Peoples Bancorp — Q4 2023 Earnings Presentation
44 slides from Peoples Bancorp's earnings presentation, Jan 29, 2024
Slide 1: Investor Presentation 4th Quarter
INVESTOR PRESENTATION I 4th QUARTER WORKING TOGETHER. BUILDING SUCCESS.
Slide 2: Table of Contents
WORKING TOGETHER BUILDING SUCCESS 2 TABLE OF CONTENTS PAGE 4 PROFILE, INVESTMENT RATIONALE, CULTURE & STRATEGY PAGE 12 CREDIT, CAPITAL & LIQUIDITY PAGE 24 Q4 & FY 2023 FINANCIAL INSIGHTS PAGE 35 Q4 & FY 2023 APPENDIX
Slide 3: Safe Harbor Statement
3 Statements in this presentation which are not historical 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 for
Slide 4: Profile, Investment Rationale, Culture & Strategy
PROFILE, INVESTMENT RATIONALE, CULTURE & STRATEGY 4
Slide 5: PEBO Geographic Profile
NASDAQ: PEBO PEBO GEOGRAPHIC PROFILE 5WORKING TOGETHER. BUILDING SUCCESS. ® NASDAQ: PEBO WV VAKY OH MD DC OHIO WARREN COUNTY 49 CARLISLE 50 FRANKLIN 51 HAMILTON TOWNSHIP 52 LEBANON 53 MASON 54 SPRINGBORO 55 WAYNESVILLE HAMILTON COUNTY 56 MADEIRA 57 MONTGOMERY 58 CINCINNATI LPO EAST 59 CINCINNATI LPO
Slide 6: Corporate Culture
6 CORPORATE CULTURE NASDAQ: PEBO OUR VISION Our vision is to be the BEST COMMUNITY BANK IN AMERICA for our employees, clients, shareholders, and local communities ENVIRONMENTAL, SOCIAL AND GOVERNANCE (“ESG”) MATTERS In 2024 and beyond, we are committed to continuing to conduct our business in a mann
Slide 7: Strategic Road Map
NASDAQ: PEBO STRATEGIC ROAD MAP 7WORKING TOGETHER. BUILDING SUCCESS. ® NASDAQ: PEBO • Everyone is a Risk Manager • Know the Risks: Strategic, Reputation, Credit, Market, Liquidity, Operational, Compliance • Disciplined Credit Culture • Do Things Right the First Time • Raise Your Hand • Discover the
Slide 8: Investment Rationale: Unique Community Banking Model
8 INVESTMENT RATIONALE NASDAQ: PEBO UNIQUE COMMUNITY BANKING MODEL • Strongest deposit market share positions in more rural markets where we can affect pricing. Top 3 market share in 35 counties across three states. • Presence near larger cities puts us in a position to capture lending opportunities
Slide 9: Investment Rationale: Credit, Capital, Deposits, Liquidity
NASDAQ: PEBO INVESTMENT RATIONALE 9WORKING TOGETHER. BUILDING SUCCESS. ® NASDAQ: PEBO CREDIT • Stable metrics compared to year-end 2022 • NPAs of 0.43% as a percentage of total assets • 98.6% of loan portfolio “current” at quarter-end • Total outstanding balance of commercial office space was $135 m
Slide 10: PEBO Has Performed Better Than Peers
PEBO HAS PERFORMED BETTER THAN PEERS IN TERMS OF 1, 3, 5 & 10 YEAR TOTAL ANNUAL RETURN 0% 10% 20% 30% 40% 50% 60% 70% 80% 3-YEAR1-YEAR 5-YEAR 10-YEAR 26% 26% 3% -3% -1% 8% TOTAL RETURN AS OF DECEMBER 31, 2023 14% 8% 5% 6% 16% 7% 6% 12% 8% 10% Total Return includes impact of dividends. Peers include:
Slide 11: External Recognition
NASDAQ: PEBO 11WORKING TOGETHER. BUILDING SUCCESS. ® NASDAQ: PEBO 250 Banks 90 Banks PEBO 1 OF 10 Over 4,600 Banks Eligible Peoples Bank has been recognized by Newsweek for 2 consecutive years. Peoples Bank has appeared on American Banker’s Best Bank to Work For list for 3 consecutive years. Peoples
Slide 12: Credit, Capital & Liquidity
NASDAQ: PEBO 12 CREDIT, CAPITAL & LIQUIDITY 12
Slide 13: Peer Group Total Deposit Cost
NASDAQ: PEBO 13WORKING TOGETHER. BUILDING SUCCESS. ® NASDAQ: PEBO 1.28% 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% EG BN LK FN FR M E FI SI SA SR CC N E AU B SR CE PF C CT BI TO W N FF BC HB N C FM N B FC F ST BA SY BT W SB C TH FF PE BO TM P G AB C N BT B PR K N W BI CH CO CB U PEER GROUP - TO
Slide 14: Peer Group Loans / Deposits
14 NASDAQ: PEBO 86.49% 0.00% 20.00% 40.00% 60.00% 80.00% 100.00% 120.00% ST BA SA SR FC F PF C N W BI EG BN SR CE AU B CC N E PR K SY BT W SB C PE BO LK FN CT BI N BT B FR M E FI SI FF BC TM P TO W N CH CO TH FF HB N C G AB C CB U FM N B PEER GROUP - LOANS / DEPOSITS UNIV. $1-$10 B Average: 88.81% L
Slide 15: Peer Group Net Interest Margin
NASDAQ: PEBO 15WORKING TOGETHER. BUILDING SUCCESS. ® NASDAQ: PEBO 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 4.00% 4.50% 5.00% PE BO FF BC PR K ST BA CH CO FC F TH FF CC N E G AB C SR CE AU B SY BT CT BI FR M E N W BI LK FN N BT B CB U W SB C TO W N FI SI FM N B TM P PF C SA SR EG BN HB N C PEE
Slide 16: Credit Risk Management Process
16 NASDAQ: PEBO CREDIT RISK MANAGEMENT PROCESS LOANS & LEASES* PORTFOLIO COMPOSITION • Robust concentration management process focused on portfolio risk diversification • Relationship based lending • Commercial Real Estate (CRE) and Commercial & Industrial (C&I) are balanced with Consumer • CRE fina
Slide 17: Asset Quality: Delinquency and Net Charge-Offs
NASDAQ: PEBO 17WORKING TOGETHER. BUILDING SUCCESS. ® NASDAQ: PEBO 0.000% 0.125% 0.250% 0.375% 20232022202120202019201820172016 Charge Offs Annualized Percentage of Net Charge-Offs to Average Loans 90% 95% 100% 20232022202120202019201820172016 Percentage of Loans considered Current Percentage of Loan
Slide 18: Nonperforming Assets
18 NASDAQ: PEBO THE INCREASE IN NPAS IN Q3 2021 WAS MAINLY DUE TO ACQUISITION OF PREMIER FINANCIAL BANCORP, INC.* *The accounting for purchased credit deteriorated loans under ASU 2016-13 resulted in the movement of $3.9 million of loans from the 90+ days past due and accruing category to the nonacc
Slide 19: Criticized and Classified Loans
NASDAQ: PEBO 19WORKING TOGETHER. BUILDING SUCCESS. ® NASDAQ: PEBO Asset Quality 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% Q4-23Q3-23Q2-23Q1-23Q4-22Q3-22Q2-22Q1-22Q4-21Q3-21Q2-21Q1-21FY-20FY-19FY-18FY-17 CLASSIFIED AND CRITICIZED LOANS AS A PERCENTAGE OF TIER 1 CAPITAL ARE WELL MANAGED. INCREASE IN Q
Slide 20: Peer Group CRE Loans / Risk-Based Capital
20 NASDAQ: PEBO 263.27% 193.30% 0% 50% 100% 150% 200% 250% 300% 350% 400% EG BN SA SR ST BA TM P FI SI PF C $1 -1 0B A ve ra ge AU B TO W N W SB C CC N E SY BT FC F FF BC PE BO LK FN FM N B N BT B G AB C FR M E TH FF HB N C CB U PR K N W BI PEER GROUP- CRE LOANS / RISK-BASED CAPITAL CRE EXPOSURE IS
Slide 21: Peer Group Construction, Land and Development Loans
NASDAQ: PEBO 21WORKING TOGETHER. BUILDING SUCCESS. ® NASDAQ: PEBO 51.67% 43.95% 0% 20% 40% 60% 80% 100% 120% EG BN FI SI LK FN PF C CC N E SA SR TO W N TH FF SY BT W SB C $1 -1 0B A ve ra ge FR M E AU B FC F PE BO TM P ST BA G AB C HB N C FF BC N BT B CB U PR K N W BI FM N B PEER GROUP - CONSTRUCTIO
Slide 22: Total Loan Portfolio = $6.2 Billion
22 NASDAQ: PEBO TOTAL LOAN PORTFOLIO = $6.2 BILLION Data as of December 31, 2023. *Total includes commercial real estate and construction loans, and exposure includes commitments. **Top ten categories in terms of loan size are shown (remaining categories in other) LOAN COMPOSITION REFLECTS DIVERSIFI
Slide 23: Prudent Use of Capital
NASDAQ: PEBO 23WORKING TOGETHER. BUILDING SUCCESS. ® NASDAQ: PEBO CAPITAL PRIORITIES • Organic growth • Dividends • Share repurchases • Acquisition activities DIVIDENDS • Over 7 consecutive years of increasing dividends. Dividend paid increased from $0.15 per share for Q1 2016 to $0.39 declared in Q
Slide 24: Q4 & FY 2023 Financial Insights
Q4 & FY 2023 FINANCIAL INSIGHTS 24
Slide 25: Q4 & FY 2023 Financial Highlights
NASDAQ: PEBO 25WORKING TOGETHER. BUILDING SUCCESS. ® NASDAQ: PEBO Social media data as of December 31, 2023 Peers include: AUB, CBU, CCNE, CHCO, CTBI, EGBN, FCF, FFBC, FISI, FMNB, FRME, GABC, HBNC, LKFN, NBTB, NWBI, PFC, PRK, SASR, SRCE, STBA, SYBT, THFF, TMP, TOWN, WSBC. Peoples Bank is in the top
Slide 26: Q4 & FY 2023 Awards Received
26 Q4 & FY 2023 AWARDS RECEIVED NASDAQ: PEBO 2023 is the 2nd year in a row Peoples Bank has received Top Workplaces USA award COMMUNITY AWARDS 2023 is the 3rd year in a row Peoples Bank has received the American Banker Best Banks to Work For award BEST IN THE VALLEYS 2023 WINNER Best of the Tri-Stat
Slide 27: 2024 Financial Expectations
NASDAQ: PEBO 27WORKING TOGETHER. BUILDING SUCCESS. ® NASDAQ: PEBO 2024 LOAN GROWTH EXPECT BETWEEN 6% AND 8%, COMPARED TO 2023 FEE-BASED INCOME ANTICIPATE GROWTH TO BE IN HIGH SINGLE DIGIT TO LOW DOUBLE-DIGIT PERCENTAGES COMPARED TO 2023 CREDIT COSTS ANTICIPATE AN INCREASE IN PROVISION FOR CREDIT LOS
Slide 28: Total Revenue
28 TOTAL REVENUE NASDAQ: PEBO $0 $75000 $150000 $225000 $300000 $375000 $450000 FY-23FY-22FY-21FY-20FY-19FY-18FY-17FY-16 Lorem ipsum RECORD TOTAL REVENUE IN 2023 $51,070 $52,653 $57,234 $64,892 $104,865 $113,377 $129,612 $140,838 NON-INTEREST INCOME, EXCLUDING GAINS AND LOSSESNET INTEREST INCOME ($
Slide 29: Insurance & Investment Income Composition
NASDAQ: PEBO INSURANCE & INVESTMENT INCOME COMPOSITION 29WORKING TOGETHER. BUILDING SUCCESS. ® NASDAQ: PEBO 3 4 5 TOTAL INVESTMENT REVENUE FY 2023 $17.2 MILLION 1 FIDUCIARY 44% 2 BROKERAGE 40% 3 EMPLOYEE BENEFITS 16% Insurance and Investment Income Composition Insurance Revenue*Investment Revenue* 1
Slide 30: Expense & Efficiency Ratio
30 EXPENSE & EFFICIENCY RATIO THE RECENT ESCALATION IN EXPENSES WAS DUE TO ACQUISITIONS, AND AN INCREASE IN FTE FOR GROWTH AND TECHNOLOGY INVESTMENTS CORE NON-INTEREST EXPENSE* Efficiency Ratio Adjusted for Non-Core Items* 50% 60% 70% FY-23FY-22FY-21FY-20FY-19FY-18FY-17 $50000 $64000 $78000 $92000 $
Slide 31: Improvement in Key Metrics
0.0% 0.5% 1.0% 1.5% 2.0% FY-23FY-22FY-21FY-20FY-19FY-18FY-17FY-16 Improvement In Key Metrics Return on Average Assets Adjusted for Non-Core Items Return on Average Tangible Stockholders’ Equity Adjusted for Non-Core Items 0% 5% 10% 15% 20% 25% FY-22FY-21FY-20FY-19FY-18FY-17FY-16 $14 $15 $16 $17 $18
Slide 32: Total Loan Growth
32 TOTAL LOAN GROWTH $0 $3,500 $7,000 FY-23FY-22FY-21FY-20FY-19FY-18FY-17FY-16 Total Loan Growth AMERICAN SAVINGS BANK (ASB) ACQUIRED LOANS TOTAL LOANS NOT ACQUIRED DURING THE CALENDAR YEAR EXCEPT PPP LOANS LIMESTONE ACQUIRED LOANS FIRST PRESTONSBURG ACQUIRED LOANS TOTAL LOANS* WERE $6.2 BILLION AS
Slide 33: Deposit Growth
Deposit Growth $0 $1,600 $3,200 $4,800 $6,400 $8,000 FY-23FY-22FY-21FY-20FY-19FY-18FY-17 DDAs* 38% OF DEPOSIT BALANCES AT YEAR END 2023 WERE DEMAND DEPOSIT ACCOUNTS (DDAS), INCLUDING $1.6 BILLION OF NON-INTEREST BEARING DDAS *DDAs stands for demand deposit accounts and represents interest-bearing an
Slide 34: More Than Just a Bank
34 MORE THAN JUST A BANK Recognized by Newsweek as one of America’s Best Banks 2023 17th largest bank owned insurance company in the United States LOCATIONS IN OHIO, WEST VIRGINIA, KENTUCKY, VIRGINIA, WASHINGTON D.C. AND MARYLAND NATIONWIDE SPECIALTY FINANCE DIVISIONS NASDAQ: PEBO
Slide 35: Q4 & FY 2023 Appendix
Q4 & FY 2023 APPENDIX 35
Slide 36: Non-US GAAP Measures: Pre-Provision Net Revenue
NASDAQ: PEBO APPENDIX NON-US GAAP MEASURES 36 PRE-PROVISION NET REVENUE Pre-provision net revenue (PPNR) has become a key financial measure used by federal bank regulatory agencies when assessing the capital adequacy of financial institutions. PPNR is defined as net interest income plus total non-in
Slide 37: Non-US GAAP Measures: PPNR Adjusted for Non-Core Items
APPENDIX NON-US GAAP MEASURES NASDAQ: PEBO 37 PRE-PROVISION NET REVENUE ADJUSTED FOR NON-CORE ITEMS Pre-provision net revenue (PPNR) has become a key financial measure used by federal bank regulatory agencies when assessing the capital adequacy of financial institutions. PPNR adjusted for non-core i
Slide 38: Non-US GAAP Measures: Core Non-Interest Income and Expense
NASDAQ: PEBO APPENDIX NON-US GAAP MEASURES 38 CORE NON-INTEREST INCOME CORE NON-INTEREST EXPENSE ($ in Thousands) FY-16 FY-17 FY-18 FY-19 FY-20 FY-21 FY-22 FY-23 Total noninterest income $ 50,867 $ 55,573 $ 56,754 $ 64,274 $ 63,672 $ 68,885 $ 78,836 $ 87,413 Less: net gain (loss) on investment secur
Slide 39: Non-US GAAP Measures: Efficiency Ratio
APPENDIX NON-US GAAP MEASURES NASDAQ: PEBO 39 EFFICIENCY RATIO AND ADJUSTED FOR NON-CORE ITEMS ($ in Thousands) FY-16 FY-17 FY-18 FY-19 FY-20 FY-21 FY-22 FY-23 RATIO Total non-interest expense $ 106,911 $ 107,975 $ 125,977 $ 137,250 $ 133,695 $ 183,737 $ 207,147 $ 266,487 f page 20 of Less: amortiza
Slide 40: Non-US GAAP Measures: Tangible Equity and Book Value
NASDAQ: PEBO APPENDIX NON-US GAAP MEASURES 40 TANGIBLE EQUITY TO TANGIBLE ASSETS AND TANGIBLE BOOK VALUE PER SHARE ($ in Thousands) FY-16 FY-17 FY-18 FY-19 FY-20 FY-21 FY-22 FY-23 Total stockholders equity $ 435,261 $ 458,592 $ 520,140 $ 594,393 $ 575,673 $ 845,025 $ 785,328 $ 1,053,534 Less: goodwi
Slide 41: Non-US GAAP Measures
Peoples uses tangible capital measures to evaluate the adequacy of Peoples’ stockholders’. Such ratios represent non-US GAAP financial measures since the calculation removes the impact of goodwill and other intangible assets acquired through acquisitions on both total stockholders’ equity and total
Slide 42: Non-US GAAP Measures: Return on Average Tangible Equity
NASDAQ: PEBO APPENDIX NON-US GAAP MEASURES 42 (a) Tax effect is calculated using a 21% federal statutory tax rate for the 2023, 2022, 2021, 2020, 2019 and 2018 periods and 35% federal statutory rate for all other periods shown. RETURN ON AVERAGE TANGIBLE STOCKHOLDERS’ EQUITY The return on average ta
Slide 43: Non-US GAAP Measures: Return on Average Equity Adjusted
APPENDIX NON-US GAAP MEASURES NASDAQ: PEBO 43 RETURN ON AVERAGE STOCKHOLDERS’ EQUITY ADJUSTED FOR NON-CORE ITEMS (a) Tax effect is calculated using a 21% federal statutory tax rate for the 2023, 2022, 2021, 2020, 2019 and 2018 periods and 35% federal statutory rate for all other periods shown. The r
Slide 44: Contact Information
peoplesbancorp.com Peoples Bancorp® is a federally registered service mark of Peoples Bancorp Inc. The three arched ribbons logo is a federally registered service mark of Peoples Bank. Peoples Bank (w/logo)® is a federally registered service mark of Peoples Bank. Working Together. Building Success.®