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: August 1, 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 July 26, 2022, management of Peoples Bancorp Inc. (“Peoples”) conducted a facilitated conference call at approximately 11:00 a.m., Eastern Daylight Time, to discuss results of operations for the quarter ended June 30, 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. NON-US GAAP FINANCIAL MEASURES (Unaudited) The following non-US 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. Peoples also uses the non-US GAAP financial measures for calculating incentive compensation. The following tables summarize the non-US GAAP financial measures derived from amounts reported in Peoples' consolidated financial statements: Three Months Ended Six Months Ended June 30, March 31, June 30, June 30, (Dollars in thousands) 2022 2022 2021 2022 2021 Core non-interest expense: Total non-interest expense $ 49,899  $ 51,629  $ 39,899  $ 101,528  $ 77,886  Less: acquisition-related expenses 602  1,373  2,400  1,975  4,311  Less: severance expenses —  —  14  —  63  Less: COVID-19-related expenses 29  94  210  123  502  Less: Peoples Bank Foundation, Inc. contribution —  —  —  —  500  Core non-interest expense $ 49,268  $ 50,162  $ 37,275  $ 99,430  $ 72,510  Three Months Ended Six Months Ended June 30, March 31, June 30, June 30, (Dollars in thousands) 2022 2022 2021 2022 2021 Efficiency ratio: Total non-interest expense 49,899  $ 51,629  39,899  101,528  77,886  Less: amortization of other intangible assets 2,034  1,708  1,368  3,742  1,988  Adjusted non-interest expense $ 47,865  $ 49,921  $ 38,531  $ 97,786  $ 75,898  Total non-interest income $ 19,386  $ 20,050  $ 15,821  $ 39,436  $ 32,724  Less: gain on investment securities —  130  —  130  (538) Add: loss on investment securities (44) —  (202) (44) —  Add: net loss on asset disposals and other transactions (152) (127) (124) (279) (151) Total non-interest income, excluding net gains and losses $ 19,582  $ 20,047  $ 16,147  $ 39,629  $ 33,413  Net interest income $ 61,468  $ 54,310  $ 39,660  $ 115,778  $ 75,238  Add: fully tax-equivalent adjustment (a) 415  391  324  806  578  Net interest income on a fully tax-equivalent basis $ 61,883  $ 54,701  $ 39,984  $ 116,584  $ 75,816  Adjusted revenue $ 81,465  $ 74,748  $ 56,131  $ 156,213  $ 109,229  Efficiency ratio 58.76  % 66.79  % 68.64  % 62.60  % 69.49  % Efficiency ratio adjusted for non-core items: Core non-interest expense $ 49,268  $ 50,162  $ 37,275  $ 99,430  $ 72,510  Less: amortization of other intangible assets 2,034  1,708  1,368  3,742  1,988  Adjusted core non-interest expense $ 47,234  $ 48,454  $ 35,907  $ 95,688  $ 70,522  Adjusted revenue $ 81,465  $ 74,748  $ 56,131  $ 156,213  $ 109,229  Efficiency ratio adjusted for non-core items 57.98  % 64.82  % 63.97  % 61.25  % 64.56  % ` (a) Tax effect is calculated using a 23.3% blended tax rate. NON-US GAAP FINANCIAL MEASURES (Unaudited) -- (Continued) (Dollars in thousands, except per share data) June 30, March 31, December 31, September 30, June 30, 2022 2022 2021 2021 2021 Tangible equity: Total stockholders' equity $ 786,824  $ 808,340  $ 845,025  $ 831,882  $ 585,505  Less: goodwill and other intangible assets 328,132  341,865  291,009  295,415  221,576  Tangible equity $ 458,692  $ 466,475  $ 554,016  $ 536,467  $ 363,929  Tangible assets: Total assets $ 7,278,292  $ 7,239,261  $ 7,063,521  $ 7,059,752  $ 5,067,634  Less: goodwill and other intangible assets 328,132  341,865  291,009  295,415  221,576  Tangible assets $ 6,950,160  $ 6,897,396  $ 6,772,512  $ 6,764,337  $ 4,846,058  Tangible book value per common share: Tangible equity $ 458,692  $ 466,475  $ 554,016  $ 536,467  $ 363,929  Common shares outstanding 28,290,115  28,453,175  28,297,771  28,265,791  19,660,877  Tangible book value per common share $ 16.21  $ 16.39  $ 19.58  $ 18.98  $ 18.51  Tangible equity to tangible assets ratio: Tangible equity $ 458,692  $ 466,475  $ 554,016  $ 536,467  $ 363,929  Tangible assets $ 6,950,160  $ 6,897,396  $ 6,772,512  $ 6,764,337  $ 4,846,058  Tangible equity to tangible assets 6.60  % 6.76  % 8.18  % 7.93  % 7.51  % Three Months Ended Six Months Ended June 30, March 31, June 30, June 30, (Dollars in thousands, except per share data) 2022 2022 2021 2022 2021 Pre-provision net revenue: Income before income taxes $ 31,735  $ 29,538  $ 12,494  $ 61,273  $ 31,737  Add: provision for credit losses —  —  3,088  —  —  Add: loss on OREO 32  1  —  33  —  Add: loss on investment securities 44  —  202  44  538  Add: loss on other assets 119  22  132  141  159  Add: net loss on other transactions —  104  —  104  —  Less: recovery of credit losses 780  6,807  —  7,587  1,661  Less: gain on OREO —  —  8  —  8  Less: gain on investment securities —  130  —  130  —  Pre-provision net revenue $ 31,150  $ 22,728  $ 15,908  $ 53,878  $ 30,765  Total average assets $ 7,121,663  $ 7,067,816  $ 5,183,146  $ 7,094,228  $ 5,048,360  Pre-provision net revenue to total average assets (annualized) 1.75  % 1.30  % 1.23  % 1.53  % 1.23  % Weighted-average common shares outstanding – diluted 28,061,736 28,129,131 19,461,934 28,041,145 19,448,544 Pre-provision net revenue per common share – diluted $1.11 $0.81 $0.81 $1.91 $1.63 NON-US GAAP FINANCIAL MEASURES (Unaudited) -- (Continued) Three Months Ended Six Months Ended June 30, March 31, June 30, June 30, (Dollars in thousands) 2022 2022 2021 2022 2021 Annualized net income adjusted for non-core items: Net income $ 24,888  $ 23,577  $ 10,103  $ 48,465  $ 25,566  Add: loss on investment securities 44  —  202  —  538  Less: tax effect of loss on investment securities (a) 9  —  42  —  113  Less: gain on investment securities —  130  —  86  —  Add: tax effect of net gain on investment securities (a) —  27  —  18  —  Add: net loss on asset disposals and other transactions 152  127  124  279  151  Less: tax effect of net loss on asset disposals and other transactions (a) 32  27  26  59  32  Add: acquisition-related expenses 602  1,373  2,400  1,975  4,311  Less: tax effect of acquisition-related expenses (a) 126  288  504  415  905  Add: severance expenses —  —  14  —  63  Less: tax effect of severance expenses (a) —  —  3  —  13  Add: COVID-19-related expenses 29  94  210  123  502  Less: tax effect of COVID-19-related expenses (a) 6  20  44  26  105  Add: Peoples Bank Foundation, Inc. contribution —  —  —  —  500  Less: tax effect of Peoples Bank Foundation, Inc. contribution (a) —  —  —  —  105  Net income adjusted for non-core items (after tax) $ 25,542  $ 24,733  $ 12,434  $ 50,274  $ 30,358  Days in the period 91  90  91  181  181  Days in the year 365  365  365  365  365  Annualized net income $ 99,825  $ 95,618  $ 40,523  $ 97,733  $ 51,556  Annualized net income adjusted for non-core items (after tax) $ 102,449  $ 100,306  $ 49,873  $ 101,381  $ 61,219  Return on average assets: Annualized net income $ 99,825  $ 95,618  $ 40,523  $ 97,733  $ 51,556  Total average assets $ 7,121,663  $ 7,067,816  $ 5,183,146  $ 7,094,228  $ 5,048,360  Return on average assets 1.40  % 1.35  % 0.78  % 1.38  % 1.02  % Return on average assets adjusted for non-core items: Annualized net income adjusted for non-core items (after tax) $ 102,449  $ 100,306  $ 49,873  $ 101,381  $ 61,219  Total average assets $ 7,121,663  $ 7,067,816  $ 5,183,146  $ 7,094,228  $ 5,048,360  Return on average assets adjusted for non-core items 1.44  % 1.42  % 0.96  % 1.43  % 1.21  % (a) Tax effect is calculated using a 21% statutory federal corporate income tax rate. NON-US GAAP FINANCIAL MEASURES (Unaudited) -- (Continued) Three Months Ended At or For the Six Months Ended June 30, March 31, June 30, June 30, (Dollars in thousands) 2022 2022 2021 2022 2021 Annualized net income excluding amortization of other intangible assets: Net income $ 24,888  $ 23,577  $ 10,103  $ 48,465  $ 25,566  Add: amortization of other intangible assets 2,034  1,708  1,368  3,742  1,988  Less: tax effect of amortization of other intangible assets (a) 427  359  287  786  417  Net income excluding amortization of other intangible assets (after tax) $ 26,495  $ 24,926  $ 11,184  $ 51,421  $ 27,137  Days in the period 91  90  91  181  181  Days in the year 365  365  365  365  365  Annualized net income $ 99,825  $ 95,618  $ 40,523  $ 97,733  $ 51,556  Annualized net income excluding amortization of other intangible assets (after tax) $ 106,271  $ 101,089  $ 44,859  $ 103,694  $ 54,724  Average tangible equity: Total average stockholders' equity $ 791,401  $ 834,752  $ 581,831  $ 812,956  $ 579,721  Less: average goodwill and other intangible assets 329,243  304,124  222,553  316,753  203,509  Average tangible equity $ 462,158  $ 530,628  $ 359,278  $ 496,203  $ 376,212  Return on average stockholders' equity ratio: Annualized net income $ 99,825  $ 95,618  $ 40,523  $ 97,733  $ 51,556  Average stockholders' equity $ 791,401  $ 834,752  $ 581,831  $ 812,956  $ 579,721  Return on average stockholders' equity 12.61  % 11.45  % 6.96  % 12.02  % 8.89  % Return on average tangible equity ratio: Annualized net income excluding amortization of other intangible assets (after tax) $ 106,271  $ 101,089  $ 44,859  $ 103,694  $ 54,724  Average tangible equity $ 462,158  $ 530,628  $ 359,278  $ 496,203  $ 376,212  Return on average tangible equity 22.99  % 19.05  % 12.49  % 20.90  % 14.55  % (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 which follows: INDEX TO EXHIBITS Exhibit Number Description 99.1 Transcript of conference call conducted by management of Peoples Bancorp Inc. on July 26, 2022 to discuss results of operations for the quarter ended June 30, 2022 104 Cover Page Interactive Data File (the cover page XBRL tags are embedded within the Inline XBRL document) * Schedules and exhibits have been omitted pursuant to Item 601(b)(2) of Regulation S-K. A copy of any omitted schedules or exhibits will be furnished supplementally to the SEC upon its request. 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: August 1, 2022 By:/s/ KATIE BAILEY Katie Bailey Executive Vice President, Chief Financial Officer and Treasurer