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 26, 2024 (January 23, 2024) 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 23, 2024, 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, 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. Three Months Ended Year Ended December 31, September 30, December 31, December 31, (Dollars in thousands) 2023 2023 2022 2023 2022 Core non-interest expense: Total non-interest expense $ 67,689  $ 71,696  $ 53,366  $ 266,487  $ 207,147  Less: acquisition-related expenses 1,276  4,434  702  16,970  3,016  Less: pension settlement charges —  2,424  46  2,424  185  Less: COVID-19-related expenses —  —  2  —  134  Add: COVID -19 Employee Retention Credit —  —  —  548  —  Core non-interest expense $ 66,413   $ 64,838   $ 52,616   $ 247,641   $ 203,812   Three Months Ended Year Ended December 31, September 30, December 31, December 31, (Dollars in thousands) 2023 2023 2022 2023 2022 Efficiency ratio: Total non-interest expense $ 67,689  $ 71,696  $ 53,366  $ 266,487  $ 207,147  Less: amortization of other intangible assets 3,271  3,280  1,998  11,222  7,763  Adjusted total non-interest expense 64,418  68,416  51,368  255,265  199,384  Total non-interest income 24,134  23,204  19,034  87,413  78,836  Less: net gain on investment securities —  —  —  —  —  Less: net loss on investment securities (1,592) (7) (168) (3,700) (61) Less: net loss on asset disposals and other transactions (619) (307) (302) (2,837) (616) Total non-interest income, excluding net gains and losses 26,345  23,518  19,504  93,950  79,513  Net interest income 88,369  93,274  70,613  339,374  253,442  Add: fully tax-equivalent adjustment (a) 414  445  412  1,703  1,644  Net interest income on a fully tax-equivalent basis 88,783  93,719  71,025  341,077  255,086  Adjusted revenue $ 115,128  $ 117,237  $ 90,529  $ 435,027  $ 334,599  Efficiency ratio 55.95  % 58.36  % 56.74  % 58.68  % 59.59  % Efficiency ratio adjusted for non-core items: Core non-interest expense $ 66,413  $ 64,838  $ 52,616  $ 247,641  $ 203,812  Less: amortization of other intangible assets 3,271  3,280  1,998  11,222  7,763  Adjusted core non-interest expense 63,142  61,558  50,618  236,419  196,049  Adjusted revenue $ 115,128  $ 117,237  $ 90,529  $ 435,027  $ 334,599  Efficiency ratio adjusted for non-core items 54.85  % 52.51  % 55.91  % 54.35  % 58.59  % (a) Tax effect is calculated using a 23.3% blended corporate income tax rate for all periods presented. At or For the Three Months Ended December 31, September 30, June 30, March 31, December 31, (Dollars in thousands, except per share data) 2023 2023 2023 2023 2022 Tangible equity: Total stockholders' equity $ 1,053,534  $ 993,219  $ 998,907  $ 819,543  $ 785,328  Less: goodwill and other intangible assets 412,172  408,494  413,172  324,562  326,329  Tangible equity $ 641,362  $ 584,725  $ 585,735  $ 494,981  $ 458,999  Tangible assets: Total assets $ 9,157,382  $ 8,942,534  $ 8,786,635  $ 7,311,520  $ 7,207,304  Less: goodwill and other intangible assets 412,172  408,494  413,172  324,562  326,329  Tangible assets $ 8,745,210  $ 8,534,040  $ 8,373,463  $ 6,986,958  $ 6,880,975  Tangible book value per common share: Tangible equity $ 641,362  $ 584,725  $ 585,735  $ 494,981  $ 458,999  Common shares outstanding 35,314,745  35,395,990  35,374,916  28,488,158  28,287,837  Tangible book value per common share $ 18.16  $ 16.52  $ 16.56  $ 17.37  $ 16.23  Tangible equity to tangible assets ratio: Tangible equity $ 641,362  $ 584,725  $ 585,735  $ 494,981  $ 458,999  Tangible assets $ 8,745,210  $ 8,534,040  $ 8,373,463  $ 6,986,958  $ 6,880,975  Tangible equity to tangible assets 7.33  % 6.85  % 7.00  % 7.08  % 6.67  % Three Months Ended Year Ended December 31, September 30, December 31, December 31, (Dollars in thousands) 2023 2023 2022 2023 2022 Pre-provision net revenue: Income before income taxes $ 43,529  $ 40,729  $ 33,980  $ 145,126  $ 128,641  Add: provision for credit losses 1,285  4,053  2,301  15,174  —  Add: loss on OREO —  1  —  1,623  138  Add: loss on investment securities 1,592  7  168  3,700  61  Add: loss on other assets 586  283  279  1,143  326  Add: loss on other transactions 33  23  22  71  151  Less: recovery of credit losses —  —  —  —  3,510  Pre-provision net revenue $ 47,025  $ 45,096  $ 36,750  $ 166,837  $ 125,807  Total average assets 8,826,655  8,806,409  7,067,193  8,298,777  7,094,707  Pre-provision net revenue to total average assets (annualized) 2.11  % 2.03  % 2.06  % 2.01  % 1.77  % Weighted-average common shares outstanding – diluted 35,089,825 35,061,897 27,981,656 32,760,808 27,999,602 Pre-provision net revenue per common share – diluted $ 1.33  $ 1.28  $ 1.31  $ 5.06  $ 4.48  Three Months Ended Year Ended December 31, September 30, December 31, December 31, (Dollars in thousands) 2023 2023 2022 2023 2022 Annualized net income adjusted for non-core items: Net income $ 33,825  $ 31,882  $ 26,849  $ 113,363  $ 101,292  Add: net loss on investment securities 1,592  7  168  3,700  61  Less: tax effect of net loss on investment securities (a) 334  2  35  777  13  Add: net loss on asset disposals and other transactions 619  307  301  2,837  616  Less: tax effect of net loss on asset disposals and other transactions (a) 130  65  63  596  129  Add: acquisition-related expenses 1,276  4,434  702  16,970  3,016  Less: tax effect of acquisition-related expenses (a) 268  931  147  3,564  633  Add: pension settlement charges —  2,424  46  2,424  185  Less: tax effect of pension settlement charges (a) —  509  10  509  39  Add: COVID-19-related expenses —  —  2  —  134  Less: tax effect of COVID-19-related expenses (a) —  —  —  —  28  Less: COVID -19 Employee Retention Credit —  —  —  548  —  Add: tax effect of COVID -19 Employee Retention Credit —  —  —  115  —  Net income adjusted for non-core items $ 36,580  $ 37,547  $ 27,813  $ 133,415  $ 104,462  Days in the period 92  92  92  365  365  Days in the year 365  365  365  365  365  Annualized net income $ 134,197  $ 126,488  $ 106,520  $ 113,363  $ 101,292  Annualized net income adjusted for non-core items $ 145,127  $ 148,964  $ 110,345  $ 133,415  $ 104,462  Return on average assets: Annualized net income $ 134,197  $ 126,488  $ 106,520  $ 113,363  $ 101,292  Total average assets $ 8,826,655  $ 8,806,409  $ 7,067,193  $ 8,298,777  $ 7,094,707  Return on average assets 1.52  % 1.44  % 1.51  % 1.37  % 1.43  % Return on average assets adjusted for non-core items: Annualized net income adjusted for non-core items $ 145,127  $ 148,964  $ 110,345  $ 133,415  $ 104,462  Total average assets $ 8,826,655  $ 8,806,409  $ 7,067,193  $ 8,298,777  $ 7,094,707  Return on average assets adjusted for non-core items 1.64  % 1.69  % 1.56  % 1.61  % 1.47  % (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) 2023 2023 2022 2023 2022 Annualized net income excluding amortization of other intangible assets: Net income $ 33,825  $ 31,882  $ 26,849  $ 113,363  $ 101,292  Add: amortization of other intangible assets 3,271  3,280  1,998  11,222  7,763  Less: tax effect of amortization of other intangible assets (a) 687  689  420  2,357  1,630  Net income excluding amortization of other intangible assets $ 36,409  $ 34,473  $ 28,427  $ 122,228  $ 107,425  Days in the period 92  92  92  365  365  Days in the year 365  365  365  365  365  Annualized net income $ 134,197  $ 126,488  $ 106,520  $ 113,363  $ 101,292  Annualized net income excluding amortization of other intangible assets $ 144,449  $ 136,768  $ 112,781  $ 122,228  $ 107,425  Average tangible equity: Total average stockholders' equity $ 1,002,515  $ 1,004,858  $ 768,650  $ 940,797  $ 797,984  Less: average goodwill and other intangible assets 411,616  411,229  327,377  384,172  322,639  Average tangible equity $ 590,899  $ 593,629  $ 441,273  $ 556,625  $ 475,345  Return on average stockholders' equity ratio: Annualized net income $ 134,197  $ 126,488  $ 106,520  $ 113,363  $ 101,292  Average stockholders' equity $ 1,002,515  $ 1,004,858  $ 768,650  $ 940,797  $ 797,984  Return on average stockholders' equity 13.39  % 12.59  % 13.86  % 12.05  % 12.69  % Return on average tangible equity ratio: Annualized net income excluding amortization of other intangible assets $ 144,449  $ 136,768  $ 112,781  $ 122,228  $ 107,425  Average tangible equity $ 590,899  $ 593,629  $ 441,273  $ 556,625  $ 475,345  Return on average tangible equity 24.45  % 23.04  % 25.56  % 21.96  % 22.60  % (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 23, 2024 to discuss results of operations for the quarter and twelve months ended December 31, 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: January 26, 2024 By:/s/ KATHRYN BAILEY Kathryn Bailey Executive Vice President, Chief Financial Officer and Treasurer