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): July 28, 2023 ( July 25, 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 July 25, 2023, 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, 2023. 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) 2023 2023 2022 2023 2022 Core non-interest expense: Total non-interest expense $ 70,623  $ 56,479  $ 49,899  $ 127,102  $ 101,528  Less: acquisition-related expenses 10,709  551  602  11,260  1,975  Less: COVID-19-related expenses —  —  29  —  123  Add: COVID -19 Employee Retention Credit 548  —  —  548  —  Core non-interest expense $ 60,462  $ 55,928  $ 49,268  $ 116,390  $ 99,430  NON-US GAAP FINANCIAL MEASURES (Unaudited) -- (Continued) Three Months Ended Six Months Ended June 30, March 31, June 30, June 30, (Dollars in thousands) 2023 2023 2022 2023 2022 Efficiency ratio: Total non-interest expense 70,623  $ 56,479  49,899  127,102  101,528  Less: amortization of other intangible assets 2,800  1,871  2,034  4,671  3,742  Adjusted non-interest expense $ 67,823  $ 54,608  $ 47,865  $ 122,431  $ 97,786  Total non-interest income $ 21,015  $ 19,060  $ 19,386  $ 40,075  $ 39,436  Less: net gain (loss) on investment securities (166) (1,935) (44) (2,101) 86  Add: net loss on asset disposals and other transactions (1,665) (246) (152) (1,911) (279) Total non-interest income, excluding net gains and losses $ 22,846  $ 21,241  $ 19,582  $ 44,087  $ 39,629  Net interest income $ 84,853  $ 72,878  $ 61,468  $ 157,731  $ 115,778  Add: fully tax-equivalent adjustment (a) 446  399  414  845  806  Net interest income on a fully tax-equivalent basis $ 85,299  $ 73,277  $ 61,882  $ 158,576  $ 116,584  Adjusted revenue $ 108,145  $ 94,518  $ 81,464  $ 202,663  $ 156,213  Efficiency ratio 62.71  % 57.78  % 58.76  % 60.41  % 62.60  % Efficiency ratio adjusted for non-core items: Core non-interest expense $ 60,462  $ 55,928  $ 49,268  $ 116,390  $ 99,430  Less: amortization of other intangible assets 2,800  1,871  2,034  4,671  3,742  Adjusted core non-interest expense $ 57,662  $ 54,057  $ 47,234  $ 111,719  $ 95,688  Adjusted revenue $ 108,145  $ 94,518  $ 81,464  $ 202,663  $ 156,213  Efficiency ratio adjusted for non-core items 53.32  % 57.19  % 57.98  % 55.13  % 61.25  % ` (a) Tax effect is calculated using a 23.6% blended corporate income tax rate at June 30, 2023 and a 23.3% blended corporate income tax rate at March 31, 2023 and June 30, 2022. NON-US GAAP FINANCIAL MEASURES (Unaudited) -- (Continued) (Dollars in thousands, except per share data) June 30, March 31, December 31, September 30, June 30, 2023 2023 2022 2022 2023 Tangible equity: Total stockholders' equity $ 998,907  $ 819,543  $ 785,328  $ 760,511  $ 786,824  Less: goodwill and other intangible assets 413,172  324,562  326,329  328,428  328,132  Tangible equity $ 585,735  $ 494,981  $ 458,999  $ 432,083  $ 458,692  Tangible assets: Total assets $ 8,786,635  $ 7,311,520  $ 7,207,304  $ 7,005,854  $ 7,278,292  Less: goodwill and other intangible assets 413,172  324,562  326,329  328,428  328,132  Tangible assets $ 8,373,463  $ 6,986,958  $ 6,880,975  $ 6,677,426  $ 6,950,160  Tangible book value per common share: Tangible equity $ 585,735  $ 494,981  $ 458,999  $ 432,083  $ 458,692  Common shares outstanding 35,374,916  28,488,158  28,287,837  28,278,078  28,290,115  Tangible book value per common share $ 16.56  $ 17.37  $ 16.23  $ 15.28  $ 16.21  Tangible equity to tangible assets ratio: Tangible equity $ 585,735  $ 494,981  $ 458,999  $ 432,083  $ 458,692  Tangible assets $ 8,373,463  $ 6,986,958  $ 6,880,975  $ 6,677,426  $ 6,950,160  Tangible equity to tangible assets 7.00  % 7.08  % 6.67  % 6.47  % 6.60  % Three Months Ended Six Months Ended June 30, March 31, June 30, June 30, (Dollars in thousands, except per share data) 2023 2023 2022 2023 2022 Pre-provision net revenue: Income (loss) before income taxes $ 27,262  $ 33,606  $ 31,735  $ 60,868  $ 61,273  Add: provision for credit losses 7,983  1,853  —  9,836  —  Add: loss on OREO 1,612  10  32  1,622  33  Add: loss on investment securities 166  1,935  44  2,101  44  Add: loss on other assets 45  229  119  274  141  Add: net loss on other transactions 8  7  —  15  104  Less: recovery of credit losses —  —  780  —  7,587  Less: gain on investment securities —  —  —  —  130  Pre-provision net revenue $ 37,076  $ 37,640  $ 31,150  $ 74,716  $ 53,878  Total average assets $ 8,342,883  $ 7,222,464  $ 7,121,663  $ 7,792,579  $ 7,094,228  Pre-provision net revenue to total average assets (annualized) 1.78  % 2.11  % 1.75  % 1.93  % 1.53  % Weighted-average common shares outstanding – diluted 32,649,976 28,021,879 28,061,736 30,314,504 28,041,145 Pre-provision net revenue per common share – diluted $1.13 $1.34 $1.11 $2.45 $1.91 NON-US GAAP FINANCIAL MEASURES (Unaudited) -- (Continued) Three Months Ended Six Months Ended June 30, March 31, June 30, June 30, (Dollars in thousands) 2023 2023 2022 2023 2022 Annualized net income (loss) adjusted for non-core items: Net income (loss) $ 21,096  $ 26,560  $ 24,888  $ 47,656  $ 48,465  Add: loss on investment securities 166  1,935  44  2,101  —  Less: tax effect of loss on investment securities (a) 35  406  9  441  —  Less: gain on investment securities —  —  —  —  86  Add: tax effect of net gain on investment securities (a) —  —  —  —  18  Add: net loss on asset disposals and other transactions 1,665  246  152  1,911  279  Less: tax effect of net loss on asset disposals and other transactions (a) 349  52  32  401  59  Add: acquisition-related expenses 10,709  551  602  11,260  1,975  Less: tax effect of acquisition-related expenses (a) 2,249  116  126  2,365  415  Add: COVID-19-related expenses —  —  29  —  123  Less: tax effect of COVID-19-related expenses (a) —  —  6  —  26  Less: COVID -19 Employee Retention Credit 548  —  —  548  —  Add: tax effect of COVID -19 Employee Retention Credit 115  —  —  115  —  Net income adjusted for non-core items (after tax) $ 30,570  $ 28,718  $ 25,542  $ 59,288  $ 50,274  Days in the period 91  90  91  181  181  Days in the year 365  365  365  365  365  Annualized net income (loss) $ 84,616  $ 107,716  $ 99,825  $ 96,102  $ 97,733  Annualized net income adjusted for non-core items (after tax) $ 122,616  $ 116,467  $ 102,449  $ 119,559  $ 101,381  Return on average assets: Annualized net income (loss) $ 84,616  $ 107,716  $ 99,825  $ 96,102  $ 97,733  Total average assets $ 8,342,883  $ 7,222,464  $ 7,121,663  $ 7,792,579  $ 7,094,228  Return on average assets 1.01  % 1.49  % 1.40  % 1.23  % 1.38  % Return on average assets adjusted for non-core items: Annualized net income adjusted for non-core items (after tax) $ 122,616  $ 116,467  $ 102,449  $ 119,559  $ 101,381  Total average assets $ 8,342,883  $ 7,222,464  $ 7,121,663  $ 7,792,579  $ 7,094,228  Return on average assets adjusted for non-core items 1.47  % 1.61  % 1.44  % 1.53  % 1.43  % (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) 2023 2023 2022 2023 2022 Annualized net income (loss) excluding amortization of other intangible assets: Net income (loss) $ 21,096  $ 26,560  $ 24,888  $ 47,656  $ 48,465  Add: amortization of other intangible assets 2,800  1,871  2,034  4,671  3,742  Less: tax effect of amortization of other intangible assets (a) 588  393  427  981  786  Net income excluding amortization of other intangible assets (after tax) $ 23,308  $ 28,038  $ 26,495  $ 51,346  $ 51,421  Days in the period 91  90  91  181  181  Days in the year 365  365  365  365  365  Annualized net income (loss) $ 84,616  $ 107,716  $ 99,825  $ 96,102  $ 97,733  Annualized net income (loss) excluding amortization of other intangible assets (after tax) $ 93,488  $ 113,710  $ 106,271  $ 103,543  $ 103,694  Average tangible equity: Total average stockholders' equity $ 951,438  $ 801,465  $ 791,401  $ 876,866  $ 812,956  Less: average goodwill and other intangible assets 387,055  325,545  329,243  356,470  316,753  Average tangible equity $ 564,383  $ 475,920  $ 462,158  $ 520,396  $ 496,203  Return on average stockholders' equity ratio: Annualized net income $ 84,616  $ 107,716  $ 99,825  $ 96,102  $ 97,733  Average stockholders' equity $ 951,438  $ 801,465  $ 791,401  $ 876,866  $ 812,956  Return on average stockholders' equity 8.89  % 13.44  % 12.61  % 10.96  % 12.02  % Return on average tangible equity ratio: Annualized net income excluding amortization of other intangible assets (after tax) $ 93,488  $ 113,710  $ 106,271  $ 103,543  $ 103,694  Average tangible equity $ 564,383  $ 475,920  $ 462,158  $ 520,396  $ 496,203  Return on average tangible equity 16.56  % 23.89  % 22.99  % 19.90  % 20.90  % (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 25, 2023 to discuss results of operations for the quarter ended June 30, 2023 104 Cover Page Interactive Data File (the cover page XBRL tags are embedded within the Inline XBRL document) 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: July 28, 2023 By:/s/   Katie Bailey Executive Vice President, Chief Financial Officer and Treasurer