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): October 27, 2023 ( October 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 October 24, 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 September 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 Nine Months Ended September 30, June 30, September 30, September 30, (Dollars in thousands) 2023 2023 2022 2023 2022 Core non-interest expense: Total non-interest expense $ 71,696  $ 70,623  $ 52,253  $ 198,798  $ 153,781  Less: acquisition-related expenses 4,434  10,709  339  15,694  2,314  Less: pension settlement charges 2,424  —  139  2,424  139  Less: COVID-19-related expenses —  —  9  —  132  Add: COVID -19 Employee Retention Credit —  548  —  548  —  Core non-interest expense $ 64,838  $ 60,462  $ 51,766  $ 181,228  $ 151,196  NON-US GAAP FINANCIAL MEASURES (Unaudited) -- (Continued) Three Months Ended Nine Months Ended September 30, June 30, September 30, September 30, (Dollars in thousands) 2023 2023 2022 2023 2022 Efficiency ratio: Total non-interest expense 71,696  $ 70,623  52,253  198,798  153,781  Less: amortization of other intangible assets 3,280  2,800  2,023  7,951  5,765  Adjusted non-interest expense $ 68,416  $ 67,823  $ 50,230  $ 190,847  $ 148,016  Total non-interest income $ 23,204  $ 21,015  $ 20,366  $ 63,279  $ 59,802  Less: net gain (loss) on investment securities (7) (166) 21  (2,108) 107  Add: net loss on asset disposals and other transactions (307) (1,665) (35) (2,218) (314) Total non-interest income, excluding net gains and losses $ 23,518  $ 22,846  $ 20,380  $ 67,605  $ 60,009  Net interest income $ 93,274  $ 84,853  $ 67,051  $ 251,005  $ 182,829  Add: fully tax-equivalent adjustment (a) 444  446  387  1,289  1,116  Net interest income on a fully tax-equivalent basis $ 93,718  $ 85,299  $ 67,438  $ 252,294  $ 183,945  Adjusted revenue $ 117,236  $ 108,145  $ 87,818  $ 319,899  $ 243,954  Efficiency ratio 58.36  % 62.71  % 57.20  % 59.66  % 60.67  % Efficiency ratio adjusted for non-core items: Core non-interest expense $ 64,838  $ 60,462  $ 51,766  $ 181,228  $ 151,196  Less: amortization of other intangible assets 3,280  2,800  2,023  7,951  5,765  Adjusted core non-interest expense $ 61,558  $ 57,662  $ 49,743  $ 173,277  $ 145,431  Adjusted revenue $ 117,236  $ 108,145  $ 87,818  $ 319,899  $ 243,954  Efficiency ratio adjusted for non-core items 52.51  % 53.32  % 56.64  % 54.17  % 59.61  % ` (a) Tax effect is calculated using a 23.3% blended corporate income tax rate at September 30, 2023, a 23.6% blended corporate income tax rate at June 30, 2023 and a 23.3% blended corporate income tax rate for September 30, 2022. NON-US GAAP FINANCIAL MEASURES (Unaudited) -- (Continued) (Dollars in thousands, except per share data) September 30, June 30, March 31, December 31, September 30, 2023 2023 2023 2022 2023 Tangible equity: Total stockholders' equity $ 993,219  $ 998,907  $ 819,543  $ 785,328  $ 760,511  Less: goodwill and other intangible assets 408,494  413,172  324,562  326,329  328,428  Tangible equity $ 584,725  $ 585,735  $ 494,981  $ 458,999  $ 432,083  Tangible assets: Total assets $ 8,942,534  $ 8,786,635  $ 7,311,520  $ 7,207,304  $ 7,005,854  Less: goodwill and other intangible assets 408,494  413,172  324,562  326,329  328,428  Tangible assets $ 8,534,040  $ 8,373,463  $ 6,986,958  $ 6,880,975  $ 6,677,426  Tangible book value per common share: Tangible equity $ 584,725  $ 585,735  $ 494,981  $ 458,999  $ 432,083  Common shares outstanding 35,395,990  35,374,916  28,488,158  28,287,837  28,278,078  Tangible book value per common share $ 16.52  $ 16.56  $ 17.37  $ 16.23  $ 15.28  Tangible equity to tangible assets ratio: Tangible equity $ 584,725  $ 585,735  $ 494,981  $ 458,999  $ 432,083  Tangible assets $ 8,534,040  $ 8,373,463  $ 6,986,958  $ 6,880,975  $ 6,677,426  Tangible equity to tangible assets 6.85  % 7.00  % 7.08  % 6.67  % 6.47  % NON-US GAAP FINANCIAL MEASURES (Unaudited) -- (Continued) Three Months Ended Nine Months Ended September 30, June 30, September 30, September 30, (Dollars in thousands, except per share data) 2023 2023 2022 2023 2022 Pre-provision net revenue: Income (loss) before income taxes $ 40,729  $ 27,262  $ 33,388  $ 101,597  $ 94,661  Add: provision for credit losses 4,053  7,983  1,776  13,889  1,776  Add: loss on OREO 1  1,612  105  1,623  138  Add: loss on investment securities 7  166  —  2,108  44  Add: loss on other assets 283  45  —  557  142  Add: net loss on other transactions 23  8  24  38  128  Less: recovery of credit losses —  —  —  —  7,587  Less: gain on investment securities —  —  21  —  151  Less: gain on other assets —  —  94  —  94  Pre-provision net revenue $ 45,096  $ 37,076  $ 35,178  $ 119,812  $ 89,057  Total average assets $ 8,806,409  $ 8,342,883  $ 7,124,108  $ 8,120,885  $ 7,103,979  Pre-provision net revenue to total average assets (annualized) 2.03  % 1.78  % 1.96  % 1.97  % 1.68  % Weighted-average common shares outstanding – diluted 35,061,897 32,649,976 27,973,255 31,977,486 28,009,263 Pre-provision net revenue per common share – diluted $1.28 $1.13 $1.25 $3.72 $3.17 NON-US GAAP FINANCIAL MEASURES (Unaudited) -- (Continued) Three Months Ended Nine Months Ended September 30, June 30, September 30, September 30, (Dollars in thousands) 2023 2023 2022 2023 2022 Annualized net income (loss) adjusted for non-core items: Net income (loss) $ 31,882  $ 21,096  $ 25,978  $ 79,538  $ 74,443  Add: loss on investment securities 7  166  —  2,108  —  Less: tax effect of loss on investment securities (a) 2  35  —  443  —  Less: gain on investment securities —  —  21  —  107  Add: tax effect of net gain on investment securities (a) —  —  4  —  22  Add: net loss on asset disposals and other transactions 307  1,665  35  2,218  314  Less: tax effect of net loss on asset disposals and other transactions (a) 65  349  7  466  66  Add: acquisition-related expenses 4,434  10,709  339  15,694.055  2,314  Less: tax effect of acquisition-related expenses (a) 931  2,249  71  3,296  486  Add: pension settlement charges 2,424  —  139  2,424  139  Less: tax effect of pension settlement charges (a) 509  —  29  509  29  Add: COVID-19-related expenses —  —  9  —  132  Less: tax effect of COVID-19-related expenses (a) —  —  2  —  28  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) $ 37,547  $ 30,570  $ 26,374  $ 96,835  $ 76,648  Days in the period 92  91  92  273  273  Days in the year 365  365  365  365  365  Annualized net income (loss) $ 126,488  $ 84,616  $ 103,065  $ 106,342  $ 99,530  Annualized net income adjusted for non-core items (after tax) $ 148,964  $ 122,616  $ 104,636  $ 129,468  $ 102,478  Return on average assets: Annualized net income (loss) $ 126,488  $ 84,616  $ 103,065  $ 106,342  $ 99,530  Total average assets $ 8,806,409  $ 8,342,883  $ 7,124,108  $ 8,120,885  $ 7,103,979  Return on average assets 1.44  % 1.01  % 1.45  % 1.31  % 1.40  % Return on average assets adjusted for non-core items: Annualized net income adjusted for non-core items (after tax) $ 148,964  $ 122,616  $ 104,636  $ 129,468  $ 102,478  Total average assets $ 8,806,409  $ 8,342,883  $ 7,124,108  $ 8,120,885  $ 7,103,979  Return on average assets adjusted for non-core items 1.69  % 1.47  % 1.47  % 1.59  % 1.44  % (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 Nine Months Ended September 30, June 30, September 30, September 30, (Dollars in thousands) 2023 2023 2022 2023 2022 Annualized net income (loss) excluding amortization of other intangible assets: Net income (loss) $ 31,882  $ 21,096  $ 25,978  $ 79,538  $ 74,443  Add: amortization of other intangible assets 3,280  2,800  2,023  7,951  5,765  Less: tax effect of amortization of other intangible assets (a) 689  588  425  1,670  1,211  Net income excluding amortization of other intangible assets (after tax) $ 34,473  $ 23,308  $ 27,576  $ 85,819  $ 78,997  Days in the period 92  91  92  273  273  Days in the year 365  365  365  365  365  Annualized net income (loss) $ 126,488  $ 84,616  $ 103,065  $ 106,342  $ 99,530  Annualized net income (loss) excluding amortization of other intangible assets (after tax) $ 136,768  $ 93,488  $ 109,405  $ 114,740  $ 105,619  Average tangible equity: Total average stockholders' equity $ 1,004,858  $ 951,438  $ 797,859  $ 919,998  $ 807,869  Less: average goodwill and other intangible assets 411,229  387,055  329,482  374,924  321,043  Average tangible equity $ 593,629  $ 564,383  $ 468,377  $ 545,074  $ 486,826  Return on average stockholders' equity ratio: Annualized net income $ 126,488  $ 84,616  $ 103,065  $ 106,342  $ 99,530  Average stockholders' equity $ 1,004,858  $ 951,438  $ 797,859  $ 919,998  $ 807,869  Return on average stockholders' equity 12.59  % 8.89  % 12.92  % 11.56  % 12.32  % Return on average tangible equity ratio: Annualized net income excluding amortization of other intangible assets (after tax) $ 136,768  $ 93,488  $ 109,405  $ 114,740  $ 105,619  Average tangible equity $ 593,629  $ 564,383  $ 468,377  $ 545,074  $ 486,826  Return on average tangible equity 23.04  % 16.56  % 23.36  % 21.05  % 21.70  % (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 October 24, 2023 to discuss results of operations for the quarter ended September 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: October 27, 2023 By:/s/   Katie Bailey Executive Vice President, Chief Financial Officer and Treasurer