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 27, 2023 ( January 24, 2023 ) 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 24, 2023, 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, 2022. 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) 2022 2022 2021 2022 2021 Core non-interest expense: Total non-interest expense $ 53,366  $ 52,253  $ 47,991  $ 207,147  $ 183,737  Less: acquisition-related expenses 702 339 903 3016 21423 Less: pension settlement charges 46 139 0 185 143 Less: severance expenses 0 0 16 0 79 Less: COVID-19-related expenses 2 9 565 134 1248 Less: Peoples Bank Foundation, Inc. contribution 0 0 0 0 500 Less: contract negotiation (refunds) expenses —  —  (603) —  1,248  Core non-interest expense $ 52,616  $ 51,766  $ 47,110  $ 203,812  $ 159,096  Three Months Ended Year Ended December 31, September 30, December 31, December 31, (Dollars in thousands) 2022 2022 2021 2022 2021 Efficiency ratio: Total non-interest expense $ 53,366  $ 52,253  $ 47,991  $ 207,147  $ 183,737  Less: amortization of other intangible assets 1,998  2,023  1,508  7,763  4,775  Adjusted total non-interest expense 51,368  50,230  46,483  199,384  178,962  Total non-interest income 19,034  20,366  19,815  78,836  68,885  Add: net (loss) gain on investment securities (168) 21  (158) (61) (862) Add: net (loss) gain on asset disposals and other transactions (302) (35) 952  (616) 493  Total non-interest income, excluding net gains and losses 19,504  20,380  19,021  79,513  69,254  Net interest income 70,613  67,051  54,737  253,442  172,553  Add: fully tax-equivalent adjustment (a) 412  387  379  1,644  1,349  Net interest income on a fully tax-equivalent basis 71,025  67,438  55,116  255,086  173,902  Adjusted revenue $ 90,529  $ 87,818  $ 74,137  $ 334,599  $ 243,156  Efficiency ratio 56.74  % 57.20  % 62.70  % 59.59  % 73.60  % Efficiency ratio adjusted for non-core items: Core non-interest expense $ 52,616  $ 51,766  $ 47,110  $ 203,812  $ 159,096  Less: amortization of other intangible assets 1,998  2,023  1,508  7,763  4,775  Adjusted core non-interest expense 50,618  49,743  45,602  196,049  154,321  Adjusted revenue $ 90,529  $ 87,818  $ 74,137  $ 334,599  $ 243,156  Efficiency ratio adjusted for non-core items 55.91  % 56.64  % 61.51  % 58.59  % 63.47  % (a) Tax effect is calculated using a 23.3% blended corporate income tax rate for all periods in 2022 and 22.3% blended corporate income tax rate for the periods in 2021. At or For the Three Months Ended December 31, September 30, June 30, March 31, December 31, (Dollars in thousands, except per share data) 2022 2022 2022 2022 2021 Tangible equity: Total stockholders' equity $ 785,328  $ 760,511  $ 786,824  $ 808,340  $ 845,025  Less: goodwill and other intangible assets 326,329  328,428  328,132  341,865  291,009  Tangible equity $ 458,999  $ 432,083  $ 458,692  $ 466,475  $ 554,016  Tangible assets: Total assets $ 7,207,304  $ 7,005,854  $ 7,278,292  $ 7,239,261  $ 7,063,521  Less: goodwill and other intangible assets 326,329  328,428  328,132  341,865  291,009  Tangible assets $ 6,880,975  $ 6,677,426  $ 6,950,160  $ 6,897,396  $ 6,772,512  Tangible book value per common share: Tangible equity $458,999 $432,083 $458,692 $466,475 $554,016 Common shares outstanding 28,287,837  28,278,078  28,290,115  28,453,175  28,297,771  Tangible book value per common share $ 16.23  $ 15.28  $ 16.21  $ 16.39  $ 19.58  Tangible equity to tangible assets ratio: Tangible equity $ 458,999  $ 432,083  $ 458,692  $ 466,475  $ 554,016  Tangible assets $ 6,880,975  $ 6,677,426  $ 6,950,160  $ 6,897,396  $ 6,772,512  Tangible equity to tangible assets 6.67  % 6.47  % 6.60  % 6.76  % 8.18  % Three Months Ended Year Ended December 31, September 30, December 31, December 31, (Dollars in thousands) 2022 2022 2021 2022 2021 Pre-provision net revenue: Income before income taxes $ 33,980  $ 33,388  $ 33,163  $ 128,641  $ 56,970  Add: provision for credit losses 2,301  1,776  —  —  731  Add: loss on OREO —  105  2  173  34  Add: loss on investment securities 321  —  556  375  2,046  Add: loss on other assets 530  —  27  975  714  Add: loss on other transactions 22  24  —  151  —  Less: recovery of credit losses —  —  6,602  3,510  —  Less: gain on OREO —  —  82  35  90  Less: gain on investment securities 153  —  398  314  1,184  Less: gain on other transactions —  21  903  —  897  Less: gain on other assets 251  94  204  649  462  Pre-provision net revenue $ 36,750  $ 35,178  $ 25,559  $ 125,807  $ 57,862  Total average assets 7,067,193  7,124,108  7,098,875  7,094,707  5,672,594  Pre-provision net revenue to total average assets (annualized) 2.06  % 1.96  % 1.43  % 1.77  % 1.02  % Weighted-average common shares outstanding – diluted 27,981,656 27,973,255 28,114,980 27,999,602 21,959,883 Pre-provision net revenue per common share – diluted $ 1.31  $ 1.25  $ 0.91  $ 4.48  $ 2.63  Three Months Ended Year Ended December 31, September 30, December 31, December 31, (Dollars in thousands) 2022 2022 2021 2022 2021 Annualized net income adjusted for non-core items: Net income $ 26,849  $ 25,978  $ 27,747  $ 101,292  $ 47,555  Add: net loss on investment securities 168  —  158  61  862  Less: tax effect of net loss on investment securities (a) 35  —  33  13  181  Less: net gain on investment securities —  21  —  —  —  Add: tax effect of net gain on investment securities (a) —  4  —  —  —  Add: net loss on asset disposals and other transactions 301  35  —  615  —  Less: tax effect of net loss on asset disposals and other transactions (a) 63  7  —  129  —  Less: net gain on asset disposals and other transactions (a) —  —  1,784  —  493  Add: tax effect of net gain on asset disposals and other transactions (a) —  —  375  —  104  Add: acquisition-related expenses 702  339  918  3,016  21,423  Less: tax effect of acquisition-related expenses (a) 147  71  193  633  4,499  Add: severance expenses —  —  16  —  79  Less: tax effect of severance expenses (a) —  —  3  —  17  Add: pension settlement charges 46  139  —  185  143  Less: tax effect of pension settlement charges (a) 10  29  —  39  30  Add: COVID-19-related expenses 2  9  565  134  1,248  Less: tax effect of COVID-19-related expenses (a) —  2  119  28  262  Add: Peoples Bank Foundation, Inc. contribution —  —  —  —  500  Less: tax effect of Peoples Bank Foundation, Inc. contribution —  —  —  —  105  Add: contract negotiation expenses —  —  —  —  1,851  Less: tax effect of contract negotiation expenses —  —  —  —  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 $ 27,813  $ 26,374  $ 27,171  $ 104,461  $ 67,313  Days in the period 92  92  92  365  365  Days in the year 365  365  365  365  365  Annualized net income $ 106,520  $ 103,065  $ 110,083  $ 101,292  $ 47,555  Annualized net income adjusted for non-core items $ 110,345  $ 104,636  $ 107,798  $ 104,461  $ 67,313  Return on average assets: Annualized net income $ 106,520  $ 103,065  $ 110,083  $ 101,292  $ 47,555  Total average assets $ 7,067,193  $ 7,124,108  $ 7,098,875  $ 7,094,707  $ 5,672,594  Return on average assets 1.51  % 1.45  % 1.55  % 1.43  % 0.84  % Return on average assets adjusted for non-core items: Annualized net income adjusted for non-core items $ 110,345  $ 104,636  $ 107,798  $ 104,461  $ 67,313  Total average assets $ 7,067,193  $ 7,124,108  $ 7,098,875  $ 7,094,707  $ 5,672,594  Return on average assets adjusted for non-core items 1.56  % 1.47  % 1.52  % 1.47  % 1.19  % (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 $ 26,849  $ 25,978  $ 27,747  $ 101,292  $ 47,555  Add: amortization of other intangible assets 1,998  2,023  1,508  7,763  4,775  Less: tax effect of amortization of other intangible assets (a) 420  425  317  1,630  1,003  Net income excluding amortization of other intangible assets $ 28,427  $ 27,576  $ 28,938  $ 107,425  $ 51,327  Days in the period 92  92  92  365  365  Days in the year 365  365  365  365  365  Annualized net income $ 106,520  $ 103,065  $ 110,083  $ 101,292  $ 47,555  Annualized net income excluding amortization of other intangible assets $ 112,781  $ 109,405  $ 114,808  $ 107,425  $ 51,327  Average tangible equity: Total average stockholders' equity $ 768,650  $ 797,859  $ 836,797  $ 797,984  $ 656,633  Less: average goodwill and other intangible assets 327,377  329,482  298,276  322,639  234,667  Average tangible equity $ 441,273  $ 468,377  $ 538,521  $ 475,345  $ 421,966  Return on average stockholders' equity ratio: Annualized net income $ 106,520  $ 103,065  $ 110,083  $ 101,292  $ 47,555  Average stockholders' equity $ 768,650  $ 797,859  $ 836,797  $ 797,984  $ 656,633  Return on average stockholders' equity 13.86  % 12.92  % 13.16  % 12.69  % 7.24  % Return on average tangible equity ratio: Annualized net income excluding amortization of other intangible assets $ 112,781  $ 109,405  $ 114,808  $ 107,425  $ 51,327  Average tangible equity $ 441,273  $ 468,377  $ 538,521  $ 475,345  $ 421,966  Return on average tangible equity 25.56  % 23.36  % 21.32  % 22.60  % 12.16  % (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 24, 2023 to discuss results of operations for the quarter and twelve months ended December 31, 2022 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 27, 2023 By:/s/ KATHRYN BAILEY Kathryn Bailey Executive Vice President, Chief Financial Officer and Treasurer