Results of Operations

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): January 28, 2022 ( January 25, 2022 ) PEOPLES BANCORP INC. (Exact name of Registrant as specified in its charter) Ohio 000-16772 31-0987416 (State or other jurisdiction (Commission File (I.R.S. Employer of incorporation) Number) Identification Number) 138 Putnam Street, PO Box 738 Marietta, Ohio 45750-0738 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (740) 373-3155 Not applicable (Former name or former address, if changed since last report) Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: ☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) ☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) ☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) ☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) Securities registered pursuant to Section 12(b) of the Act: Title of each class Trading Symbol(s) Name of each exchange on which registered Common shares, without par value PEBO The Nasdaq Stock Market Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). Emerging growth company ☐ If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐ Item 2.02     Results of Operations and Financial Condition On January 25, 2022, management of Peoples Bancorp Inc. (“Peoples”) conducted a facilitated conference call at approximately 11:00 a.m., Eastern Standard Time, to discuss results of operations for the quarter and twelve months ended December 31, 2021. A replay of the conference call audio will be available on Peoples’ website, www.peoplesbancorp.com, in the “Investor Relations” section for one year. A copy of the transcript of the conference call is included as Exhibit 99.1 to this Current Report on Form 8-K. The information contained in this Item 2.02 and Exhibit 99.1 included with this Current Report on Form 8-K, is being furnished pursuant to Item 2.02 and shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section, nor shall such information be deemed to be incorporated by reference in any registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as otherwise stated in such filing. During the conference call, management referred to non-Generally Accepted Accounting Principles ("US GAAP") financial measures that are used by management to provide information useful to investors in understanding Peoples' operating performance and trends, and to facilitate comparisons with the performance of Peoples' peers. The following tables show the differences between the non-US GAAP financial measures referred to during the conference call and the most directly comparable US GAAP-based financial measures. Three Months Ended Year Ended December 31, September 30, December 31, December 31, (Dollars in thousands) 2021 2021 2020 2021 2020 Core non-interest expense: Total non-interest expense $ 47,991  $ 57,860  $ 33,250  $ 183,737  $ 133,695  Less: acquisition-related expenses 918 16,209 77 21,423 489 Less: pension settlement charges — 143 4 143 1,054 Less: severance expenses 16 — 771 79 1,055 Less: COVID-19 related expenses 566 181 126 1,248 1,332 Less: Peoples Bank Foundation, Inc. contribution — — — 500 — Less: contract negotiation expenses (603) 1,851  —  1,248  —  Core non-interest expense $ 47,094  $ 39,476  $ 32,272  $ 159,096  $ 129,765  Three Months Ended Year Ended December 31, September 30, December 31, December 31, (Dollars in thousands) 2021 2021 2020 2021 2020 Efficiency ratio: Total non-interest expense $ 47,991 $ 57,860 $ 33,250 $ 183,737 $ 133,695 Less: amortization of other intangible assets 1,508 1,279 909 4,775 3,223 Adjusted total non-interest expense 46,483 56,581 32,341 178,962 130,472 Total non-interest income 20,647 16,346 16,501 69,717 63,672 Add: net loss on investment securities (158) (166) (751) (862) (368) Add: net gain (loss) on asset disposals and other transactions 1,784 (308) (53) 1,325 (290) Total non-interest income, excluding net gains and losses 19,021 16,820 17,305 69,254 64,330 Net interest income 54,579 42,578 34,308 172,395 138,923 Add: fully tax-equivalent adjustment (a) 380 351 251 1,350 1,054 Net interest income on a fully tax-equivalent basis 54,959 42,929 34,559 173,745 139,977 Adjusted revenue $ 73,980 $ 59,749 $ 51,864 $ 242,999 $ 204,307 Efficiency ratio 62.83  % 94.70  % 62.36  % 73.65  % 63.86  % Efficiency ratio adjusted for non-core items: Core non-interest expense $ 47,094 $ 39,476 $ 32,272 $ 159,096 $ 129,765 Less: amortization of other intangible assets 1,508 1,279 909 4,775 3,223 Adjusted core non-interest expense 45,586 38,197 31,363 154,321 126,542 Adjusted revenue $ 73,980 $ 59,749 $ 51,864 $ 242,999 $ 204,307 Efficiency ratio adjusted for non-core items 61.62  % 63.93  % 60.47  % 63.51  % 61.94  % (a) Tax effect is calculated using a 21% statutory federal corporate income tax rate. At or For the Three Months Ended December 31, September 30, June 30, March 31, December 31, (Dollars in thousands, except per share data) 2021 2021 2021 2021 2020 Tangible equity: Total stockholders' equity $ 845,204 $ 831,882 $ 585,505 $ 578,893 $ 575,673 Less: goodwill and other intangible assets 296,627 295,415 221,576 184,007 184,597 Tangible equity $ 548,577 $ 536,467 $ 363,929 $ 394,886 $ 391,076 Tangible assets: Total assets $ 7,068,376 $ 7,059,752 $ 5,067,634 $ 5,143,052 $ 4,760,764 Less: goodwill and other intangible assets 296,627 295,415 221,576 184,007 184,597 Tangible assets $ 6,771,749 $ 6,764,337 $ 4,846,058 $ 4,959,045 $ 4,576,167 Tangible book value per common share: Tangible equity $ 548,577 $ 536,467 $ 363,929 $ 394,886 $ 391,076 Common shares outstanding 28,297,771 28,265,791 19,660,877 19,563,979 19,563,979 Tangible book value per common share $ 19.39 $ 18.98 $ 18.51 $ 20.18 $ 19.99 Tangible equity to tangible assets ratio: Tangible equity $ 548,577 $ 536,467 $ 363,929 $ 394,886 $ 391,076 Tangible assets $ 6,771,749 $ 6,764,337 $ 4,846,058 $ 4,959,045 $ 4,576,167 Tangible equity to tangible assets 8.10% 7.93% 7.51% 7.96% 8.55% Three Months Ended Year Ended December 31, September 30, December 31, December 31, (Dollars in thousands) 2021 2021 2020 2021 2020 Pre-provision net revenue: Income (loss) before income taxes $ 34,848 $ (7,930) $ 24,836 $ 58,655 $ 42,646 Add: provision for credit losses — 8,994 — — 26,254 Add: loss on OREO 2 32 162 34 197 Add: loss on investment securities 556 316 1,020 2,046 1,023 Add: loss on other assets 235 363 148 714 601 Add: net loss on other transactions — 6 — — — Less: recovery of credit losses 7,613 — 7,277 280 — Less: gain on OREO 307 — 43 315 77 Less: gain on investment securities 397 150 269 1,184 655 Less: gain on other transactions 1,511 — — 1,504   — Less: gain on other assets 203 93 214 462 431 Pre-provision net revenue $ 25,610 $ 1,538 $ 18,363 $ 57,704 $ 69,558 Total average assets 7,098,927 5,475,147 4,837,978 5,672,607 4,739,289 Pre-provision net revenue to total average assets (annualized) 1.43% 0.11% 1.51% 1.02% 1.47% Weighted-average common shares outstanding – diluted 28,114,980 20,789,271 19,442,284 21,959,883 19,843,806 Pre-provision net revenue per common share – diluted $ 0.91 $ 0.07 $ 0.94 $ 2.62 $ 3.49 Three Months Ended Year Ended December 31, September 30, December 31, December 31, (Dollars in thousands) 2021 2021 2020 2021 2020 Annualized net income adjusted for non-core items: Net income (loss) $ 27,926 $ (5,758) $ 20,573 $ 47,734 $ 34,767 Add: net loss on investment securities 158 166 751 862 368 Less: tax effect of net loss on investment securities (a) 33 35 158 181 77 Add: loss on asset disposals and other transactions — 308 53 — 290 Less: tax effect of net loss on asset disposals and other transactions (a) — 65 11 — 61 Less: gain on asset disposals and other transactions (a) 1,784 — — 1,325 — Add: tax effect of net loss on asset disposals and other transactions (a) 375 — — 278 — Add: acquisition-related costs 918 16,209 77 21,420 1,459 Less: tax effect of acquisition-related costs (a) 193 3,404 16 4,498 306 Add: severance expenses 16 — 771 79 1,055 Less: tax effect of severance expenses (a) 3 — 162 17 222 Add: pension settlement charges — 143 4 143 1,054 Less: tax effect of pension settlement charges (a) — 30 1 30 221 Add: COVID-19-related expenses 566 181 126 1,248 1,332 Less: tax effect of COVID-19-related expenses (a) 119 38 26 262 280 Add: Peoples Bank Foundation, Inc. contribution — — — 500 — Less: tax effect of Peoples Bank Foundation, Inc. contribution — — — 105 — Add: contract negotiation expenses — 1,851 — 1,851 — Less: tax effect of contract negotiation expenses — 389 — 389 — Less: refund of contract negotiation expense 603 — — 603 — Add: tax effect of refund of contract negotiation expense 127 — — 127 — Net income adjusted for non-core items $ 27,351 $ 9,139 $ 21,981 $ 66,832 $ 39,158 Days in the period 92 92 92 365 366 Days in the year 365 365 366 365 366 Annualized net income (loss) $ 110,793 $ (22,844) $ 81,845 $ 47,734 $ 34,767 Annualized net income adjusted for non-core items $ 108,512 $ 36,258 $ 87,446 $ 66,832 $ 39,158 Return on average assets: Annualized net income (loss) $ 110,793 $ (22,844) $ 81,845 $ 47,734 $ 34,767 Total average assets $ 7,098,927 $ 5,475,147 $ 4,837,978 $ 5,672,607 $ 4,739,289 Return on average assets 1.56% (0.42)% 1.69% 0.84% 0.73% Return on average assets adjusted for non-core items: Annualized net income adjusted for non-core items $ 108,512  $ 36,258 $ 87,446 $ 66,832 $ 39,158 Total average assets $ 7,098,927 $ 5,475,147 $ 4,837,978 $ 5,672,607 $ 4,739,289 Return on average assets adjusted for non-core items 1.53% 0.66% 1.81% 1.18% 0.83% (a) Tax effect is calculated using a 21% statutory federal corporate income tax rate. For the Three Months Ended For the Year Ended December 31, September 30, December 31, December 31, (Dollars in thousands) 2021 2021 2020 2021 2020 Annualized net income excluding amortization of other intangible assets: Net income (loss) $ 27,926 $ (5,758) $ 20,573 $ 47,734 $ 34,767 Add: amortization of other intangible assets 1,508 1279 909 4,775 3,223 Less: tax effect of amortization of other intangible assets (a) 317 269 191 1,003 677 Net income (loss) excluding amortization of other intangible assets $ 29,11 $ (4,748) $ 21,29 $ 51,50 $ 37,31 Days in the period 92 92 92 365 366 Days in the year 365 365 366 365 366 Annualized net income (loss) $ 110,79 $ (22,844) $ 81,84 $ 47,73 $ 34,76 Annualized net income (loss) excluding amortization of other intangible assets $ 115,51 $ (18,837) $ 84,70 $ 51,50 $ 37,31 Average tangible equity: Total average stockholders' equity $ 836,799 $ 627,783 $ 566,292 $ 656,633 $ 575,386 Less: average goodwill and other intangible assets 298,337 232,361 185,093 234,683 181,526 Average tangible equity $ 538,462 $ 395,422 $ 381,199 $ 421,950 $ 393,860 Return on average stockholders' equity ratio: Annualized net income (loss) $ 110,793 $ (22,844) $ 81,845 $ 47,734 $ 34,767 Average stockholders' equity $ 836,799 $ 627,783 $ 566,292 $ 656,633 $ 575,386 Return on average stockholders' equity 13.24% (3.64)% 14.45% 7.27% 6.04% Return on average tangible equity ratio: Annualized net income (loss) excluding amortization of other intangible assets $ 115,519 $ (18,837) $ 84,701 $ 51,506 $ 37,313 Average tangible equity $ 538,462 $ 395,422 $ 381,199 $ 421,950 $ 393,860 Return on average tangible equity 21.45% (4.76)% 22.22% 12.21% 9.47% (a) Tax effect is calculated using a 21% statutory federal corporate income tax rate. Item 9.01      Financial Statements and Exhibits a) - c) Not applicable d) Exhibits See Index to Exhibits below. INDEX TO EXHIBITS Exhibit Number Description 99.1 Transcript of conference call conducted by management of Peoples Bancorp Inc. on January 25, 2022 to discuss results of operations for the quarter and twelve months ended December 31, 2021 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. PEOPLES BANCORP INC. Date: January 28, 2022 By:/s/ KATHRYN BAILEY Kathryn Bailey Executive Vice President, Chief Financial Officer and Treasurer