☒ | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
PEOPLES BANCORP INC. | |||||||||||
(Exact name of registrant as specified in its charter) | |||||||||||
Ohio | 31-0987416 | ||||||||||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | ||||||||||
138 Putnam Street, P.O. Box 738, | |||||||||||
Marietta, | Ohio | 45750-0738 | |||||||||
(Address of principal executive offices) | (Zip Code) | ||||||||||
Registrant’s telephone number, including area code: | (740) | 373-3155 | |||||||||
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 | |||||||||
Securities registered pursuant to Section 12(g) of the Act: | None |
Large accelerated filer | x | Accelerated filer | ☐ | ||||||||
Non-accelerated filer | o | Smaller reporting company | ☐ | ||||||||
Emerging growth company | ☐ |
Location | Address | Lease Expiration Date | ||||||
Athens - Mall Office | 801 East State Street, Athens, Ohio | June 2024 (a) | ||||||
Beachwood | 24400 Chagrin Boulevard, Beachwood, Ohio | September 2023 (a) | ||||||
Beckley LPO | 300 N Kanawha St STE 207, Beckley WV | February 2023 (c) | ||||||
Chevy Chase | 5530 Wisconsin Ave STE 105, Chevy Chase, MD | September 2023 (e) | ||||||
Cincinnati West LPO | 6701 Ruwes Oak Dr, Cincinnati, OH | February 2023 (a) | ||||||
Lancaster Fair Ave | 2211 West Fair Avenue, Lancaster, Ohio | March 2023 (d) | ||||||
Louisa Insurance | 306 Commerce Drive, Louisa, KY | December 2023 (f) | ||||||
Milford LPO | 151 Castleberry Ct., Milford, OH | June 2024 (b) | ||||||
Nelsonville | 951 Canal Street, Nelsonville, Ohio | January 2024 (a) | ||||||
North Canton LPO | 125 S. Main Street, North Canton, OH | July 2023 (d) | ||||||
Vanceburg AA Highway | 67 Commercial Dr STE 3, Vanceburg, KY | February 2023 (a) | ||||||
Washington DC LPO | 1130 Connecticut Ave, Washington, DC | August 2023 (a) | ||||||
Worthington LPO | 250 E. Wilson Bridge Rd., Suite 230, Worthington, Ohio | March 2024 (a) |
Period | (a) Total Number of Common Shares Purchased | (b) Average Price Paid per Common Share | (c) Total Number of Common Shares Purchased as Part of Publicly Announced Plans or Programs (1) | (d) Maximum Number (or Approximate Dollar Value) of Common Shares that May Yet Be Purchased Under the Plans or Programs (1) | ||||||||||||||||
October 1 – 31, 2022 | 8,664 | (1) | $ | 28.99 | (1) | 8,664 | $ | 22,606,290 | ||||||||||||
November 1 – 30, 2022 | 925 | (2) | $ | 29.89 | (2) | — | $ | 22,606,290 | ||||||||||||
December 1 – 31, 2022 | — | $ | — | — | $ | 22,606,290 | ||||||||||||||
Total | 9,589 | $ | 29.07 | 8,664 | $ | 22,606,290 |
At December 31, | |||||||||||||||||||||||
2017 | 2018 | 2019 | 2020 | 2021 | 2022 | ||||||||||||||||||
Peoples Bancorp Inc. | $ | 100.00 | $ | 95.23 | $ | 114.22 | $ | 94.49 | $ | 116.07 | $ | 108.36 | |||||||||||
Russell 2000 Index | $ | 100.00 | $ | 88.97 | $ | 111.65 | $ | 133.90 | $ | 153.70 | $ | 122.25 | |||||||||||
KBW Nasdaq Bank Index | $ | 100.00 | $ | 82.29 | $ | 112.01 | $ | 100.46 | $ | 138.97 | $ | 109.23 | |||||||||||
Russell 2000 Financial Services Index | $ | 100.00 | $ | 89.07 | $ | 110.53 | $ | 108.27 | $ | 140.50 | $ | 118.59 |
(Dollars in thousands) | 2022 | 2021 | 2020 | ||||||||
Net interest income | $ | 253,442 | $ | 172,553 | $ | 138,923 | |||||
Taxable equivalent adjustments | 1,644 | 1,349 | 1,054 | ||||||||
FTE net interest income | $ | 255,086 | $ | 173,902 | $ | 139,977 |
2022 | 2021 | 2020 | |||||||||||||||||||||||||||||||||
(Dollars in thousands) | Average Balance | Income/ Expense | Yield/Cost | Average Balance | Income/Expense | Yield/Cost | Average Balance | Income/ Expense | Yield/Cost | ||||||||||||||||||||||||||
Short-term investments | $ | 178,781 | $ | 1,710 | 0.96 | % | $ | 219,849 | $ | 313 | 0.14 | % | $ | 103,767 | $ | 343 | 0.33 | % | |||||||||||||||||
Investment securities (a)(b): | |||||||||||||||||||||||||||||||||||
Taxable | 1,481,368 | 29,091 | 1.96 | % | 1,042,419 | 15,219 | 1.46 | % | 868,930 | 14,370 | 1.65 | % | |||||||||||||||||||||||
Nontaxable | 199,279 | 5,444 | 2.73 | % | 163,095 | 4,326 | 2.65 | % | 101,965 | 3,146 | 3.09 | % | |||||||||||||||||||||||
Total investment securities | 1,680,647 | 34,535 | 2.05 | % | 1,205,514 | 19,545 | 1.62 | % | 970,895 | 17,516 | 1.80 | % | |||||||||||||||||||||||
Loans (b)(c): | |||||||||||||||||||||||||||||||||||
Construction | 223,197 | 10,732 | 4.74 | % | 131,834 | 5,130 | 3.84 | % | 107,862 | 4,883 | 4.45 | % | |||||||||||||||||||||||
Commercial real estate, other | 1,327,064 | 65,405 | 4.86 | % | 1,061,323 | 42,308 | 3.93 | % | 854,749 | 36,499 | 4.20 | % | |||||||||||||||||||||||
Commercial and industrial | 875,754 | 41,358 | 4.66 | % | 870,682 | 37,321 | 4.23 | % | 925,060 | 34,458 | 3.66 | % | |||||||||||||||||||||||
Premium finance | 150,135 | 6,789 | 4.46 | % | 118,242 | 5,872 | 4.90 | % | 50,687 | 2,855 | 5.54 | % | |||||||||||||||||||||||
Leases | 271,349 | 34,720 | 12.62 | % | 74,442 | 13,572 | 17.98 | % | — | — | — | % | |||||||||||||||||||||||
Residential real estate (d) | 881,136 | 37,851 | 4.30 | % | 700,691 | 29,686 | 4.24 | % | 660,025 | 31,155 | 4.72 | % | |||||||||||||||||||||||
Home equity lines of credit | 170,567 | 8,300 | 4.87 | % | 133,340 | 5,410 | 4.06 | % | 127,454 | 5,799 | 4.55 | % | |||||||||||||||||||||||
Consumer, indirect | 563,887 | 23,029 | 4.08 | % | 529,994 | 21,480 | 4.05 | % | 453,379 | 19,364 | 4.27 | % | |||||||||||||||||||||||
Consumer, direct | 111,148 | 6,769 | 6.09 | % | 88,611 | 5,501 | 6.21 | % | 79,138 | 5,286 | 6.68 | % | |||||||||||||||||||||||
Total loans | 4,574,237 | 234,953 | 5.09 | % | 3,709,159 | 166,280 | 4.44 | % | 3,258,354 | 140,299 | 4.26 | % | |||||||||||||||||||||||
Allowance for credit losses | (55,233) | (56,038) | (47,692) | ||||||||||||||||||||||||||||||||
Net loans | 4,519,004 | 234,953 | 5.15 | % | 3,653,121 | 166,280 | 4.51 | % | 3,210,662 | 140,299 | 4.33 | % | |||||||||||||||||||||||
Total earning assets | 6,378,432 | 271,198 | 4.22 | % | 5,078,484 | 186,138 | 3.64 | % | 4,285,324 | 158,158 | 3.66 | % | |||||||||||||||||||||||
Goodwill and other intangible assets | 322,639 | 234,667 | 181,526 | ||||||||||||||||||||||||||||||||
Other assets | 393,636 | 359,443 | 272,439 | ||||||||||||||||||||||||||||||||
Total assets | $ | 7,094,707 | $ | 5,672,594 | $ | 4,739,289 | |||||||||||||||||||||||||||||
Interest-bearing deposits: | |||||||||||||||||||||||||||||||||||
Savings accounts | $ | 1,069,097 | $ | 356 | 0.03 | % | $ | 772,726 | $ | 112 | 0.01 | % | $ | 571,676 | $ | 175 | 0.03 | % | |||||||||||||||||
Government deposit accounts | 701,587 | 2,172 | 0.31 | % | 529,955 | 2,035 | 0.38 | % | 375,305 | 2,226 | 0.59 | % | |||||||||||||||||||||||
Interest-bearing demand accounts | 1,165,106 | 583 | 0.05 | % | 848,526 | 303 | 0.04 | % | 658,214 | 455 | 0.07 | % | |||||||||||||||||||||||
Money market accounts | 632,364 | 1,015 | 0.16 | % | 575,237 | 390 | 0.07 | % | 549,276 | 1,416 | 0.26 | % | |||||||||||||||||||||||
Retail certificates of deposit | 580,660 | 2,978 | 0.51 | % | 497,181 | 3,952 | 0.79 | % | 473,244 | 6,748 | 1.43 | % | |||||||||||||||||||||||
Brokered deposits (e) | 88,234 | 2,067 | 2.34 | % | 150,716 | 3,130 | 2.08 | % | 223,940 | 2,480 | 1.11 | % | |||||||||||||||||||||||
Total interest-bearing deposits | 4,237,048 | 9,171 | 0.22 | % | 3,374,341 | 9,922 | 0.29 | % | 2,851,655 | 13,500 | 0.47 | % | |||||||||||||||||||||||
Borrowed funds: | |||||||||||||||||||||||||||||||||||
Short-term FHLB advances (f) | 83,356 | 2,386 | 2.86 | % | 30,289 | 475 | 1.57 | % | 129,928 | 2,489 | 1.92 | % | |||||||||||||||||||||||
Repurchase agreements and other | 113,434 | 275 | 0.24 | % | 70,674 | 66 | 0.09 | % | 46,706 | 82 | 0.18 | % | |||||||||||||||||||||||
Total short-term borrowings | 196,790 | 2,661 | 1.35 | % | 100,963 | 541 | 0.54 | % | 176,634 | 2,571 | 1.46 | % | |||||||||||||||||||||||
Long-term FHLB advances | 53,102 | 984 | 1.85 | % | 94,050 | 1,413 | 1.50 | % | 107,935 | 1,740 | 1.61 | % | |||||||||||||||||||||||
Long-term notes payable | 56,865 | 2,562 | 4.51 | % | — | — | — | % | — | — | — | % | |||||||||||||||||||||||
Other borrowings | 13,718 | 734 | 5.27 | % | 9,364 | 360 | 3.79 | % | 8,757 | 370 | 4.23 | % | |||||||||||||||||||||||
Total long-term borrowings | 123,685 | 4,280 | 3.46 | % | 103,414 | 1,773 | 1.71 | % | 116,692 | 2,110 | 1.81 | % | |||||||||||||||||||||||
Total borrowed funds | 320,475 | 6,941 | 2.15 | % | 204,377 | 2,314 | 1.13 | % | 293,326 | 4,681 | 1.59 | % | |||||||||||||||||||||||
Total interest-bearing liabilities | 4,557,523 | 16,112 | 0.35 | % | 3,578,718 | 12,236 | 0.34 | % | 3,144,981 | 18,181 | 0.58 | % | |||||||||||||||||||||||
Non-interest-bearing deposits | 1,637,690 | 1,347,702 | 924,799 | ||||||||||||||||||||||||||||||||
Other liabilities | 101,510 | 89,541 | 94,123 | ||||||||||||||||||||||||||||||||
Total liabilities | 6,296,723 | 5,015,961 | 4,163,903 | ||||||||||||||||||||||||||||||||
Stockholders’ equity | 797,984 | 656,633 | 575,386 | ||||||||||||||||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 7,094,707 | $ | 5,672,594 | $ | 4,739,289 | |||||||||||||||||||||||||||||
Interest rate spread (b) | $ | 255,086 | 3.87 | % | $ | 173,902 | 3.30 | % | $ | 139,977 | 3.08 | % | |||||||||||||||||||||||
Net interest margin (b) | 3.97 | % | 3.40 | % | 3.24 | % |
(Dollars in thousands) | Changes from 2021 to 2022 | Changes from 2020 to 2021 | |||||||||||||||||||||
Increase (decrease) in: | Rate | Volume | Total (a) | Rate | Volume | Total (a) | |||||||||||||||||
INTEREST INCOME: | |||||||||||||||||||||||
Short-term investments | $ | 1,461 | $ | (64) | $ | 1,397 | $ | (258) | $ | 228 | $ | (30) | |||||||||||
Investment securities (b): | |||||||||||||||||||||||
Taxable | 6,436 | 7,436 | 13,872 | (4,274) | 5,123 | 849 | |||||||||||||||||
Nontaxable | 186 | 932 | 1,118 | (1,431) | 2,611 | 1,180 | |||||||||||||||||
Total investment income | 6,622 | 8,368 | 14,990 | (5,705) | 7,734 | 2,029 | |||||||||||||||||
Loans (b): | |||||||||||||||||||||||
Construction | 1,421 | 4,181 | 5,602 | (723) | 970 | 247 | |||||||||||||||||
Commercial real estate, other | 11,216 | 11,881 | 23,097 | (2,414) | 8,223 | 5,809 | |||||||||||||||||
Commercial and industrial | 3,818 | 219 | 4,037 | 4,955 | (2,092) | 2,863 | |||||||||||||||||
Premium finance | (550) | 1,467 | 917 | (358) | 3,375 | 3,017 | |||||||||||||||||
Leases | (5,031) | 26,179 | 21,148 | — | 13,572 | 13,572 | |||||||||||||||||
Residential real estate | 419 | 7,746 | 8,165 | (3,315) | 1,846 | (1,469) | |||||||||||||||||
Home equity lines of credit | 1,204 | 1,686 | 2,890 | (648) | 259 | (389) | |||||||||||||||||
Consumer, indirect | 166 | 1,383 | 1,549 | (1,028) | 3,144 | 2,116 | |||||||||||||||||
Consumer, direct | (137) | 1,405 | 1,268 | (391) | 606 | 215 | |||||||||||||||||
Total loan income | 12,526 | 56,147 | 68,673 | (3,922) | 29,903 | 25,981 | |||||||||||||||||
Total interest income | 20,609 | 64,451 | 85,060 | (9,885) | 37,865 | 27,980 | |||||||||||||||||
INTEREST EXPENSE: | |||||||||||||||||||||||
Deposits: | |||||||||||||||||||||||
Savings accounts | 187 | 57 | 244 | (112) | 49 | (63) | |||||||||||||||||
Government deposit accounts | (442) | 579 | 137 | (934) | 743 | (191) | |||||||||||||||||
Interest-bearing demand accounts | 145 | 135 | 280 | (260) | 108 | (152) | |||||||||||||||||
Money market accounts | 582 | 43 | 625 | (1,090) | 64 | (1,026) | |||||||||||||||||
Retail certificates of deposit | (1,562) | 588 | (974) | (3,122) | 326 | (2,796) | |||||||||||||||||
Brokered deposit | 362 | (1,425) | (1,063) | 1,654 | (1,004) | 650 | |||||||||||||||||
Total deposit cost | (728) | (23) | (751) | (3,864) | 286 | (3,578) | |||||||||||||||||
Borrowed funds: | |||||||||||||||||||||||
Short-term borrowings | 761 | 1,359 | 2,120 | (433) | (1,597) | (2,030) | |||||||||||||||||
Long-term borrowings | 373 | 2,134 | 2,507 | (177) | (160) | (337) | |||||||||||||||||
Total borrowed funds cost | 1,134 | 3,493 | 4,627 | (610) | (1,757) | (2,367) | |||||||||||||||||
Total interest expense | 406 | 3,470 | 3,876 | (4,474) | (1,471) | (5,945) | |||||||||||||||||
Net interest income | $ | 20,203 | $ | 60,981 | $ | 81,184 | $ | (5,411) | $ | 39,336 | $ | 33,925 |
(Dollars in thousands) | 2022 | 2021 | 2020 | ||||||||
(Recovery of) Provision for other credit losses | $ | (4,560) | $ | 339 | $ | 25,798 | |||||
Provision for checking account overdrafts | 1,050 | 392 | 456 | ||||||||
(Recovery of) Provision for credit losses | $ | (3,510) | $ | 731 | $ | 26,254 | |||||
As a percent of average total loans | (0.08) | % | 0.02 | % | 0.81 | % |
(Dollars in thousands) | 2022 | 2021 | 2020 | ||||||||
Net loss on investment securities | $ | (61) | $ | (862) | $ | (368) | |||||
Net (loss) gain on asset disposals and other transactions: | |||||||||||
Net loss on other assets | $ | (326) | $ | (460) | $ | (367) | |||||
Net (loss) gain on OREO | (139) | 56 | (120) | ||||||||
Net (loss) gain on other transactions | (151) | 897 | 197 | ||||||||
Net (loss) gain on asset disposals and other transactions | $ | (616) | $ | 493 | $ | (290) |
(Dollars in thousands) | 2022 | 2021 | 2020 | ||||||||
E-banking income | $ | 21,094 | $ | 18,010 | $ | 14,246 |
(Dollars in thousands) | 2022 | 2021 | 2020 | ||||||||
Fiduciary | $ | 7,508 | $ | 7,930 | $ | 6,906 | |||||
Brokerage | 6,343 | 5,966 | 4,560 | ||||||||
Employee benefit plan fees | 2,540 | 2,560 | 2,196 | ||||||||
Trust and investment income | $ | 16,391 | $ | 16,456 | $ | 13,662 |
(Dollars in thousands) | 2022 | 2021 | 2020 | ||||||||
Trust | $ | 1,764,639 | $ | 2,009,871 | $ | 1,885,324 | |||||
Brokerage | 1,211,868 | 1,183,927 | 1,009,521 | ||||||||
Total | $ | 2,976,507 | $ | 3,193,798 | $ | 2,894,845 | |||||
Annual average | $ | 2,965,985 | $ | 3,053,807 | $ | 2,510,596 |
(Dollars in thousands) | 2022 | 2021 | 2020 | ||||||||
Property and casualty insurance commissions | $ | 11,986 | $ | 11,192 | $ | 10,240 | |||||
Performance-based commissions | 1,424 | 2,044 | 1,457 | ||||||||
Life and health insurance commissions | 1,975 | 1,627 | 1,897 | ||||||||
Other fees and charges | 342 | 389 | 448 | ||||||||
Insurance income | $ | 15,727 | $ | 15,252 | $ | 14,042 |
(Dollars in thousands) | 2022 | 2021 | 2020 | ||||||||
Overdraft and non-sufficient funds fees | $ | 8,324 | $ | 5,528 | $ | 5,073 | |||||
Account maintenance fees | 5,323 | 3,808 | 3,573 | ||||||||
Other fees and charges | 936 | 807 | 772 | ||||||||
Deposit account service charges | $ | 14,583 | $ | 10,143 | $ | 9,418 |
(Dollars in thousands) | 2022 | 2021 | 2020 | ||||||||
Lease income | $ | 4,267 | $ | 1,293 | $ | — | |||||
Bank owned life insurance income | 2,624 | 1,767 | 1,977 | ||||||||
Mortgage banking income | 1,397 | 3,439 | 6,499 | ||||||||
Other non-interest income | $ | 3,430 | $ | 2,894 | $ | 4,486 | |||||
(Dollars in thousands) | 2022 | 2021 | 2020 | ||||||||
Base salaries and wages | $ | 74,593 | $ | 60,622 | $ | 52,016 | |||||
Sales-based and incentive compensation | 18,732 | 16,668 | 12,200 | ||||||||
Employee benefit costs | 13,654 | 11,091 | 8,510 | ||||||||
Employee stock-based compensation | 3,819 | 3,515 | 3,607 | ||||||||
Deferred personnel costs | (4,975) | (3,695) | (4,342) | ||||||||
Payroll taxes and other employment costs | 6,867 | 6,411 | 4,370 | ||||||||
Salaries and employee benefit costs | $ | 112,690 | $ | 94,612 | $ | 76,361 | |||||
Full-time equivalent employees: | |||||||||||
Actual at end of the period | 1,267 | 1,188 | 894 | ||||||||
Average during the period | 1,245 | 1,003 | 894 |
(Dollars in thousands) | 2022 | 2021 | 2020 | ||||||||
Depreciation expense | $ | 7,015 | $ | 6,143 | $ | 5,955 | |||||
Repairs and maintenance costs | 5,323 | 3,972 | 2,988 | ||||||||
Net rent expense | 2,974 | 1,723 | 1,293 | ||||||||
Property taxes, utilities and other costs | 4,204 | 3,080 | 2,572 | ||||||||
Net occupancy and equipment expense | $ | 19,516 | $ | 14,918 | $ | 12,808 |
(Dollars in thousands) | 2022 | 2021 | 2020 | ||||||||
Data processing and software expense | $ | 14,241 | $ | 10,542 | $ | 7,441 | |||||
Professional fees | 12,094 | 15,783 | 6,912 | ||||||||
E-banking expense | 9,231 | 8,885 | 7,777 | ||||||||
Amortization of other intangible assets | 7,763 | 4,775 | 3,223 | ||||||||
Marketing expense | 3,728 | 3,658 | 2,101 | ||||||||
FDIC insurance expense | 3,702 | 1,976 | 1,302 | ||||||||
Franchise tax expense | 3,487 | 3,357 | 3,506 | ||||||||
Other loan expenses | 2,735 | 2,001 | 1,584 | ||||||||
Communication expense | 2,484 | 1,657 | 1,134 | ||||||||
Other non-interest expense | $ | 15,476 | $ | 21,573 | $ | 9,546 | |||||
(Dollars in thousands) | 2022 | 2021 | 2020 | ||||||||
Pre-Provision Net Revenue: | |||||||||||
Income before income taxes | $ | 128,641 | $ | 56,970 | $ | 42,646 | |||||
Add: provision for credit losses | — | 731 | 26,254 | ||||||||
Add: net loss on OREO | 138 | — | 120 | ||||||||
Add: net loss on investment securities | 61 | 862 | 368 | ||||||||
Add: net loss on other assets | 326 | 252 | 170 | ||||||||
Add: net loss on other transactions | 151 | — | — | ||||||||
Less: recovery of credit losses | 3,510 | — | — | ||||||||
Less: net gain on OREO | — | 56 | — | ||||||||
Less: net gain on other transactions | — | 897 | — | ||||||||
Pre-provision net revenue | $ | 125,807 | $ | 57,862 | $ | 69,558 | |||||
Total average assets | $ | 7,094,707 | $ | 5,672,594 | $ | 4,739,289 | |||||
Pre-provision net revenue to total average assets | 1.77 | % | 1.02 | % | 1.47 | % | |||||
Weighted-average common shares outstanding - diluted | 27,999,602 | 21,959,883 | 19,843,806 | ||||||||
Pre-provision net revenue per common share - diluted | $ | 4.48 | $ | 2.63 | $ | 3.49 |
(Dollars in thousands) | 2022 | 2021 | 2020 | ||||||||
Core non-interest expense: | |||||||||||
Total non-interest expense | $ | 207,147 | $ | 183,737 | $ | 133,695 | |||||
Less: COVID-19-related expenses | 134 | 1,248 | 1,332 | ||||||||
Less: severance expenses | — | 79 | 1,055 | ||||||||
Less: pension settlement charges | 185 | 143 | 1,054 | ||||||||
Less: acquisition-related expenses | 3,016 | 21,423 | 489 | ||||||||
Less: Peoples Bank Foundation, Inc. contribution | — | 500 | — | ||||||||
Less: contract negotiation expenses | — | 1,248 | — | ||||||||
Core non-interest expense | $ | 203,812 | $ | 159,096 | $ | 129,765 |
(Dollars in thousands) | 2022 | 2021 | 2020 | ||||||||
Efficiency ratio: | |||||||||||
Total non-interest expense | $ | 207,147 | $ | 183,737 | $ | 133,695 | |||||
Less: amortization of other intangible assets | 7,763 | 4,775 | 3,223 | ||||||||
Adjusted total non-interest expense | 199,384 | 178,962 | 130,472 | ||||||||
Total non-interest income | 78,836 | 68,885 | 63,672 | ||||||||
Less: net loss on investment securities | (61) | (862) | (368) | ||||||||
Less: net (loss) gain on asset disposals and other transactions | (616) | 493 | (290) | ||||||||
Total non-interest income excluding net gains and losses | 79,513 | 69,254 | 64,330 | ||||||||
Net interest income | 253,442 | 172,553 | 138,923 | ||||||||
Add: fully-tax-equivalent adjustment (a) | 1,644 | 1,349 | 1,054 | ||||||||
Net interest income on a fully-tax equivalent basis | 255,086 | 173,902 | 139,977 | ||||||||
Adjusted revenue | $ | 334,599 | $ | 243,156 | $ | 204,307 | |||||
Efficiency ratio | 59.59 | % | 73.60 | % | 63.86 | % | |||||
Efficiency ratio adjusted for non-core items: | |||||||||||
Core non-interest expense | $ | 203,812 | $ | 159,096 | $ | 129,765 | |||||
Less: amortization of other intangible assets | 7,763 | 4,775 | 3,223 | ||||||||
Adjusted core non-interest expense | 196,049 | 154,321 | 126,542 | ||||||||
Core non-interest income excluding net gains and losses | 79,513 | 69,254 | 64,330 | ||||||||
Net interest income on a fully-tax-equivalent basis | 255,086 | 173,902 | 139,977 | ||||||||
Adjusted core revenue | $ | 334,599 | $ | 243,156 | $ | 204,307 | |||||
Efficiency ratio adjusted for non-core items | 58.59 | % | 63.47 | % | 61.94 | % |
(Dollars in thousands) | 2022 | 2021 | 2020 | ||||||||
Net income adjusted for non-core items: | |||||||||||
Net income | $ | 101,292 | $ | 47,555 | $ | 34,767 | |||||
Add: net loss on investment securities | 61 | 862 | 368 | ||||||||
Less: tax effect of net loss on investment securities (a) | 13 | 181 | 77 | ||||||||
Add: net loss on asset disposals and other transactions | 616 | — | 290 | ||||||||
Less: tax effect of net loss on asset disposals and other transactions (a) | 129 | — | 61 | ||||||||
Less: net gain on asset disposals and other transactions (a) | — | 493 | — | ||||||||
Add: tax effect of net gain on asset disposals and other transactions (a) | — | 104 | — | ||||||||
Add: acquisition-related expenses | 3,016 | 21,423 | 1,459 | ||||||||
Less: tax effect of acquisition-related expenses (a) | 633 | 4,499 | 306 | ||||||||
Add: severance expenses | — | 79 | 1,055 | ||||||||
Less: tax effect of severance expenses (a) | — | 17 | 222 | ||||||||
Add: pension settlement charges | 185 | 143 | 1,054 | ||||||||
Less: tax effect of pension settlement charges (a) | 39 | 30 | 221 | ||||||||
Add: COVID-19-related expenses | 134 | 1,248 | 1,332 | ||||||||
Less: tax effect of COVID-19-related expenses (a) | 28 | 262 | 280 | ||||||||
Add: Peoples Bank Foundation, Inc. contribution | — | 500 | — | ||||||||
Less: tax effect of Peoples Bank Foundation, Inc. contribution | — | 105 | — | ||||||||
Add: contract negotiation expenses | — | 1,248 | — | ||||||||
Less: tax effect of contract negotiation expenses | — | 262 | — | ||||||||
Net income adjusted for non-core items (after tax) | $ | 104,462 | $ | 67,313 | $ | 39,158 | |||||
Return on average assets: | |||||||||||
Net income | $ | 101,292 | $ | 47,555 | $ | 34,767 | |||||
Total average assets | 7,094,707 | 5,672,594 | 4,739,289 | ||||||||
Return on average assets | 1.43 | % | 0.84 | % | 0.73 | % | |||||
Return on average assets adjusted for non-core items: | |||||||||||
Net income adjusted for non-core items | $ | 104,462 | $ | 67,313 | $ | 39,158 | |||||
Total average assets | 7,094,707 | 5,672,594 | 4,739,289 | ||||||||
Return on average assets adjusted for non-core items | 1.47 | % | 1.19 | % | 0.83 | % |
(Dollars in thousands) | Weighted average yield | 2022 | 2021 | 2020 | ||||||||||
Available-for-sale securities, at fair value: | ||||||||||||||
Obligations of: | ||||||||||||||
U.S. Treasury and government agencies | 1.88 | % | $ | 152,422 | $ | 35,604 | $ | — | ||||||
U.S. government sponsored agencies | 1.80 | % | 88,115 | 81,739 | 5,363 | |||||||||
States and political subdivisions | 2.20 | % | 225,882 | 259,319 | 114,919 | |||||||||
Residential mortgage-backed securities | 1.75 | % | 604,653 | 828,517 | 623,218 | |||||||||
Commercial mortgage-backed securities | 1.51 | % | 50,049 | 63,519 | 4,783 | |||||||||
Bank-issued trust preferred securities | 4.80 | % | 10,278 | 6,795 | 4,730 | |||||||||
Total fair value | $ | 1,131,399 | $ | 1,275,493 | $ | 753,013 | ||||||||
Total amortized cost | $ | 1,300,719 | $ | 1,283,146 | $ | 734,544 | ||||||||
Net unrealized (loss) gain | $ | (169,320) | $ | (7,653) | $ | 18,469 | ||||||||
Held-to-maturity securities, at amortized cost: | ||||||||||||||
Obligations of: | ||||||||||||||
U.S. government sponsored agencies | 4.23 | % | $ | 132,366 | $ | 36,431 | $ | — | ||||||
States and political subdivisions (a) | 2.23 | % | $ | 145,022 | $ | 151,402 | $ | 35,139 | ||||||
Residential mortgage-backed securities | 3.48 | % | 176,215 | 110,708 | 25,890 | |||||||||
Commercial mortgage-backed securities | 2.38 | % | 106,609 | 75,588 | 5,429 | |||||||||
Total amortized cost | $ | 560,212 | $ | 374,129 | $ | 66,458 | ||||||||
Other investment securities | $ | 51,609 | $ | 33,987 | $ | 37,560 | ||||||||
Total investment securities: | ||||||||||||||
Amortized cost | $ | 1,912,540 | $ | 1,691,262 | $ | 838,562 | ||||||||
Carrying value | $ | 1,743,220 | $ | 1,683,609 | $ | 857,031 |
(Dollars in thousands) | 2022 | 2021 | 2020 | ||||||||
Originated loans: | |||||||||||
Construction | $ | 212,869 | $ | 137,437 | $ | 103,169 | |||||
Commercial real estate, other | 919,531 | 861,610 | 780,324 | ||||||||
Commercial real estate | 1,132,400 | 999,047 | 883,493 | ||||||||
Commercial and industrial | 835,178 | 779,064 | 943,024 | ||||||||
Premium finance | 159,197 | 136,121 | 100,571 | ||||||||
Leases | 226,438 | 69,169 | — | ||||||||
Residential real estate | 384,262 | 350,595 | 281,623 | ||||||||
Home equity lines of credit | 132,093 | 104,176 | 93,296 | ||||||||
Consumer, indirect | 629,426 | 530,532 | 503,526 | ||||||||
Consumer, direct | 98,706 | 81,330 | 75,591 | ||||||||
Consumer | 728,132 | 611,862 | 579,117 | ||||||||
Deposit account overdrafts | 722 | 756 | 351 | ||||||||
Total originated loans | $ | 3,598,422 | $ | 3,050,790 | $ | 2,881,475 | |||||
Acquired loans: | |||||||||||
Construction | $ | 34,072 | $ | 72,795 | $ | 3,623 | |||||
Commercial real estate, other | 503,987 | 688,471 | 149,529 | ||||||||
Commercial real estate | 538,059 | 761,266 | 153,152 | ||||||||
Commercial and industrial | 57,456 | 112,328 | 30,621 | ||||||||
Premium finance | — | 15 | 14,187 | ||||||||
Leases | 118,693 | 53,339 | — | ||||||||
Residential real estate | 339,098 | 421,123 | 292,384 | ||||||||
Home equity lines of credit | 45,765 | 59,417 | 27,617 | ||||||||
Consumer, indirect | — | — | 1 | ||||||||
Consumer, direct | 9,657 | 23,322 | 3,503 | ||||||||
Consumer | 9,657 | 23,322 | 3,504 | ||||||||
Total acquired loans (a) | $ | 1,108,728 | $ | 1,430,810 | $ | 521,465 | |||||
Total loans | $ | 4,707,150 | $ | 4,481,600 | $ | 3,402,940 | |||||
Average total loans | 4,574,237 | 3,709,159 | 3,258,354 | ||||||||
Average allowance for credit losses | (55,233) | (56,038) | (47,692) | ||||||||
Average loans, net of average allowance for credit losses | $ | 4,519,004 | $ | 3,653,121 | $ | 3,210,662 |
(Dollars in thousands) | 2022 | 2021 | 2020 | ||||||||
Percent of loans to total loans: | |||||||||||
Construction | 5.2 | % | 4.7 | % | 3.1 | % | |||||
Commercial real estate, other | 30.2 | % | 34.7 | % | 27.3 | % | |||||
Commercial real estate | 35.4 | % | 39.4 | % | 30.4 | % | |||||
Commercial and industrial | 19.0 | % | 19.9 | % | 28.6 | % | |||||
Premium finance | 3.4 | % | 3.0 | % | 3.4 | % | |||||
Leases | 7.3 | % | 2.7 | % | — | % | |||||
Residential real estate | 15.4 | % | 17.2 | % | 16.9 | % | |||||
Home equity lines of credit | 3.8 | % | 3.7 | % | 3.6 | % | |||||
Consumer, indirect | 13.4 | % | 11.8 | % | 14.8 | % | |||||
Consumer, direct | 2.3 | % | 2.3 | % | 2.3 | % | |||||
Consumer | 15.7 | % | 14.1 | % | 17.1 | % | |||||
Deposit account overdrafts (b) | NM | NM | NM | ||||||||
Total percentage | 100.0 | % | 100.0 | % | 100.0 | % | |||||
Residential real estate loans being serviced for others | $ | 392,364 | $ | 430,597 | $ | 485,972 |
(Dollars in thousands) | Due in One Year or Less | Due in One to Five Years | Due in Five to Fifteen Years | Due After Fifteen Years | Total | % of Total | ||||||||||||||
Construction: | ||||||||||||||||||||
Fixed | $ | 1,219 | $ | 23,385 | $ | 1,886 | $ | 86 | $ | 26,576 | 10.8 | % | ||||||||
Variable | 48,257 | 140,618 | 28,706 | 2,784 | 220,365 | 89.2 | % | |||||||||||||
Total | 49,476 | 164,003 | 30,592 | 2,870 | 246,941 | 100.0 | % | |||||||||||||
Commercial real estate, other: | ||||||||||||||||||||
Fixed | 39,752 | 141,641 | 254,289 | 16,727 | 452,409 | 31.8 | % | |||||||||||||
Variable | 49,165 | 278,811 | 438,528 | 204,605 | 971,109 | 68.2 | % | |||||||||||||
Total | 88,917 | 420,452 | 692,817 | 221,332 | 1,423,518 | 100.0 | % | |||||||||||||
Commercial and industrial: | ||||||||||||||||||||
Fixed | 117,974 | 75,638 | 67,289 | 408 | 261,309 | 29.3 | % | |||||||||||||
Variable | 242,527 | 106,263 | 270,645 | 11,890 | 631,325 | 70.7 | % | |||||||||||||
Total | 360,501 | 181,901 | 337,934 | 12,298 | 892,634 | 100.0 | % | |||||||||||||
Premium finance: | ||||||||||||||||||||
Fixed | 159,197 | — | — | — | 159,197 | 100.0 | % | |||||||||||||
Leases: | ||||||||||||||||||||
Fixed | 52,588 | 280,273 | 12,270 | — | 345,131 | 100.0 | % | |||||||||||||
Residential real estate: | ||||||||||||||||||||
Fixed | 57,979 | 14,200 | 157,240 | 249,472 | 478,891 | 66.2 | % | |||||||||||||
Variable | 8,997 | 6,990 | 82,213 | 146,269 | 244,469 | 33.8 | % | |||||||||||||
Total | 66,976 | 21,190 | 239,453 | 395,741 | 723,360 | 100.0 | % | |||||||||||||
Home equity lines of credit: | ||||||||||||||||||||
Fixed | 18 | 271 | 1,136 | 402 | 1,827 | 1.0 | % | |||||||||||||
Variable | 2,622 | 35,185 | 122,700 | 15,524 | 176,031 | 99.0 | % | |||||||||||||
Total | 2,640 | 35,456 | 123,836 | 15,926 | 177,858 | 100.0 | % | |||||||||||||
Consumer, indirect: | ||||||||||||||||||||
Fixed | 4,762 | 280,227 | 344,437 | — | 629,426 | 100.0 | % | |||||||||||||
Consumer, direct: | ||||||||||||||||||||
Fixed | 2,757 | 61,077 | 39,894 | 89 | 103,817 | 95.8 | % | |||||||||||||
Variable | 376 | 2,506 | 1,560 | 104 | 4,546 | 4.2 | % | |||||||||||||
Total | 3,133 | 63,583 | 41,454 | 193 | 108,363 | 100.0 | % |
(Dollars in thousands) | Outstanding Balance | Available Loan Commitments | Total Exposure | % of Total Exposure | ||||||||||
Construction: | ||||||||||||||
Apartment complexes | $ | 120,981 | $ | 181,393 | $ | 302,374 | 58.7 | % | ||||||
Assisted living facilities and nursing homes | 37,484 | 17,508 | 54,992 | 10.7 | % | |||||||||
Mixed-use facilities | 29,282 | 10,910 | 40,192 | 7.8 | % | |||||||||
Land only | 19,702 | 11,434 | 31,136 | 6.1 | % | |||||||||
Office buildings and complexes | 10,100 | 9,180 | 19,280 | 3.7 | % | |||||||||
Industrial | 5,778 | 5,277 | 11,055 | 2.1 | % | |||||||||
Other (a) | 23,614 | 32,274 | 55,888 | 10.9 | % | |||||||||
Construction | $ | 246,941 | $ | 267,976 | $ | 514,917 | 100.0 | % | ||||||
Commercial real estate, other: | ||||||||||||||
Retail facilities: | ||||||||||||||
Owner occupied | 40,232 | 730 | 40,962 | 2.7 | % | |||||||||
Non-owner occupied | 125,408 | 2,125 | 127,533 | 8.4 | % | |||||||||
Total retail | 165,640 | 2,855 | 168,495 | 11.1 | % | |||||||||
Office buildings and complexes: | ||||||||||||||
Owner occupied | 74,125 | 2,418 | 76,543 | 5.0 | % | |||||||||
Non-owner occupied | 82,279 | 2,780 | 85,059 | 5.6 | % | |||||||||
Total office buildings and complexes | 156,404 | 5,198 | 161,602 | 10.6 | % | |||||||||
Light industrial facilities: | ||||||||||||||
Owner occupied | 103,268 | 2,329 | 105,597 | 7.0 | % | |||||||||
Non-owner occupied | 40,746 | 726 | 41,472 | 2.7 | % | |||||||||
Total light industrial facilities | 144,014 | 3,055 | 147,069 | 9.7 | % | |||||||||
Mixed commercial use facilities: | ||||||||||||||
Owner occupied | 53,737 | 546 | 54,283 | 3.6 | % | |||||||||
Non-owner occupied | 55,731 | 566 | 56,297 | 3.7 | % | |||||||||
Total mixed commercial use facilities | 109,468 | 1,112 | 110,580 | 7.3 | % | |||||||||
Lodging and lodging related: | ||||||||||||||
Owner occupied | 14,533 | 1,222 | 15,755 | 1.0 | % | |||||||||
Non-owner occupied | 91,538 | 50 | 91,588 | 6.0 | % | |||||||||
Total lodging and lodging related | 106,071 | 1,272 | 107,343 | 7.0 | % | |||||||||
Apartment complexes | 96,890 | 54,135 | 151,025 | 10.0 | % | |||||||||
Warehouse facilities: | ||||||||||||||
Owner occupied | 36,718 | 2,077 | 38,795 | 2.6 | % | |||||||||
Non-owner occupied | 28,064 | 223 | 28,287 | 1.9 | % | |||||||||
Total warehouse facilities | 64,782 | 2,300 | 67,082 | 4.5 | % | |||||||||
Assisted living facilities and nursing homes | 53,333 | 250 | 53,583 | 3.5 | % | |||||||||
Education services: | ||||||||||||||
Owner occupied | 16,896 | 98 | 16,994 | 1.1 | % | |||||||||
Non-owner occupied | 30,395 | 5,558 | 35,953 | 2.4 | % | |||||||||
Total education services | 47,291 | 5,656 | 52,947 | 3.5 | % | |||||||||
Restaurant/bar facilities: | ||||||||||||||
Owner occupied | 22,262 | — | 22,262 | 1.5 | % | |||||||||
Non-owner occupied | 11,471 | 298 | 11,769 | 0.8 | % | |||||||||
Total restaurant/bar facilities | 33,733 | 298 | 34,031 | 2.3 | % | |||||||||
Healthcare: | ||||||||||||||
Owner occupied | 22,030 | 459 | 22,489 | 1.5 | % | |||||||||
Non-owner occupied | 10,112 | — | 10,112 | 0.7 | % | |||||||||
Total healthcare facilities | 32,142 | 459 | 32,601 | 2.2 | % | |||||||||
Other (a) | 413,750 | 16,382 | 430,092 | 28.3 | % | |||||||||
Commercial real estate, other | $ | 1,423,518 | $ | 92,972 | $ | 1,516,450 | 100.0 | % |
(Dollars in thousands) | 2022 | 2021 | 2020 | ||||||||
PPP aggregate outstanding principal balances | $ | 2,458 | $ | 89,307 | $ | 374,753 | |||||
PPP net deferred loan origination fees | 27 | 2,210 | 7,851 | ||||||||
Amortization of net deferred loan origination fees | 2,183 | 13,025 | 7,516 |
(Dollars in thousands) | 2022 | 2021 | 2020 | ||||||||
Construction | $ | 1,250 | $ | 2,999 | $ | 1,887 | |||||
Commercial real estate | 17,710 | 29,147 | 17,536 | ||||||||
Commercial and industrial | 8,229 | 11,063 | 12,763 | ||||||||
Premium finance | 344 | 379 | 1,095 | ||||||||
Leases | 8,495 | 4,797 | — | ||||||||
Residential real estate | 6,357 | 7,233 | 6,044 | ||||||||
Home equity lines of credit | 1,693 | 2,005 | 1,860 | ||||||||
Consumer, indirect | 7,448 | 5,326 | 8,030 | ||||||||
Consumer, direct | 1,575 | 961 | 1,081 | ||||||||
Deposit account overdrafts | 61 | 57 | 63 | ||||||||
Allowance for credit losses | $ | 53,162 | $ | 63,967 | $ | 50,359 | |||||
As a percent of total loans | 1.13 | % | 1.43 | % | 1.48 | % |
(Dollars in thousands) | 2022 | 2021 | 2020 | ||||||||
Allowance for credit losses, January 1 | $ | 63,967 | $ | 50,359 | $ | 25,868 | |||||
Gross charge-offs: | |||||||||||
Construction | 16 | — | — | ||||||||
Commercial real estate, other | 489 | 387 | 528 | ||||||||
Commercial and industrial | 943 | 1,057 | 1,565 | ||||||||
Premium finance | 124 | 45 | 3 | ||||||||
Leases | 2,585 | 1,434 | — | ||||||||
Residential real estate | 668 | 385 | 353 | ||||||||
Home equity lines of credit | 88 | 197 | 103 | ||||||||
Consumer, indirect | 2,233 | 1,756 | 1,923 | ||||||||
Consumer, direct | 363 | 152 | 187 | ||||||||
Consumer | 2,596 | 1,908 | 2,110 | ||||||||
Deposit account overdrafts | 1,246 | 575 | 673 | ||||||||
Total gross charge-offs | 8,755 | 5,988 | 5,335 | ||||||||
Recoveries: | |||||||||||
Commercial real estate, other | 297 | 204 | 200 | ||||||||
Commercial and industrial | 49 | 26 | 2,521 | ||||||||
Premium finance | 13 | — | — | ||||||||
Leases | 420 | 339 | — | ||||||||
Residential real estate | 84 | 143 | 302 | ||||||||
Home equity lines of credit | 45 | 41 | 12 | ||||||||
Consumer, indirect | 328 | 253 | 302 | ||||||||
Consumer, direct | 47 | 112 | 49 | ||||||||
Consumer | 375 | 365 | 351 | ||||||||
Deposit account overdrafts | 200 | 177 | 186 | ||||||||
Total recoveries | 1,483 | 1,295 | 3,572 | ||||||||
Net charge-offs (recoveries): | |||||||||||
Construction | 16 | — | — | ||||||||
Commercial real estate, other | 192 | 183 | 328 | ||||||||
Commercial and industrial | 894 | 1,031 | (956) | ||||||||
Premium finance | 111 | 45 | 3 | ||||||||
Leases | 2,165 | 1,095 | — | ||||||||
Residential real estate | 584 | 242 | 51 | ||||||||
Home equity lines of credit | 43 | 156 | 91 | ||||||||
Consumer, indirect | 1,905 | 1,503 | 1,621 | ||||||||
Consumer, direct | 316 | 40 | 138 | ||||||||
Consumer | 2,221 | 1,543 | 1,759 | ||||||||
Deposit account overdrafts | 1,046 | 398 | 487 | ||||||||
Total net charge-offs | $ | 7,272 | $ | 4,693 | $ | 1,763 | |||||
(Recovery of) Provision for credit losses, December 31 (a) | (2,904) | 731 | 26,254 | ||||||||
Initial allowance for PCD assets | $ | (629) | $ | 17,570 | $ | — | |||||
Allowance for credit losses, December 31 | $ | 53,162 | $ | 63,967 | $ | 50,359 | |||||
Net charge-offs (recoveries) as a percent of average total loans: | |||||||||||
Construction | — | % | — | % | — | % | |||||
Commercial real estate, other | 0.01 | % | — | % | 0.01 | % | |||||
Commercial and industrial | 0.02 | % | 0.03 | % | (0.03) | % | |||||
Premium finance | — | % | — | % | — | % | |||||
Leases | 0.05 | % | 0.03 | % | — | % | |||||
Residential real estate | 0.01 | % | 0.01 | % | — | % | |||||
Home equity lines of credit | — | % | — | % | — | % | |||||
Consumer, indirect | 0.04 | % | 0.05 | % | 0.05 | % | |||||
Consumer, direct | 0.01 | % | — | % | — | % | |||||
Consumer | 0.05 | % | 0.05 | % | 0.05 | % | |||||
Deposit account overdrafts | 0.02 | % | 0.01 | % | 0.02 | % | |||||
Total | 0.16 | % | 0.13 | % | 0.05 | % |
(Dollars in thousands) | 2022 | 2021 | 2020 | ||||||||
Loans 90+ days past due and accruing (a): | |||||||||||
Construction | $ | — | $ | 90 | $ | — | |||||
Commercial real estate, other | 167 | 689 | — | ||||||||
Commercial and industrial | 130 | 1,139 | 50 | ||||||||
Premium finance | 504 | 865 | 589 | ||||||||
Leases | 3,041 | — | — | ||||||||
Residential real estate | 917 | 805 | 1,975 | ||||||||
Home equity lines of credit | 58 | 50 | 82 | ||||||||
Consumer, indirect | — | — | 39 | ||||||||
Consumer, direct | 25 | 85 | 17 | ||||||||
Consumer | 25 | 85 | 56 | ||||||||
Total loans 90+ days past due and accruing | 4,842 | 3,723 | 2,752 | ||||||||
Nonaccrual loans (a): | |||||||||||
Construction | 12 | 6 | 4 | ||||||||
Commercial real estate, other | 9,522 | 16,849 | 8,744 | ||||||||
Commercial and industrial | 3,145 | 2,505 | 4,017 | ||||||||
Leases | 3,178 | 1,581 | — | ||||||||
Residential real estate | 8,517 | 8,016 | 6,080 | ||||||||
Home equity lines of credit | 680 | 687 | 708 | ||||||||
Consumer, indirect | 2,026 | 1,302 | 883 | ||||||||
Consumer, direct | 200 | 273 | 160 | ||||||||
Consumer | 2,226 | 1,575 | 1,043 | ||||||||
Total nonaccrual loans | 27,280 | 31,219 | 20,596 | ||||||||
(Dollars in thousands) | 2022 | 2021 | 2020 | ||||||||
Nonaccrual troubled debt restructurings (TDRs): | |||||||||||
Commercial real estate, other | $ | 2,599 | $ | 218 | $ | 367 | |||||
Commercial and industrial | 317 | 1,067 | 2,175 | ||||||||
Residential real estate | 979 | 1,631 | 2,295 | ||||||||
Home equity lines of credit | 140 | 352 | 159 | ||||||||
Consumer, indirect | 150 | 272 | 190 | ||||||||
Consumer, direct | 8 | 6 | 11 | ||||||||
Total nonaccrual TDRs | 4,193 | 3,546 | 5,197 | ||||||||
Total nonperforming loans (NPLs) | 36,315 | 38,488 | 28,545 | ||||||||
OREO: | |||||||||||
Commercial | 8,730 | 9,105 | — | ||||||||
Residential | 165 | 391 | 134 | ||||||||
Total OREO | 8,895 | 9,496 | 134 | ||||||||
Total nonperforming assets (NPAs) | $ | 45,210 | $ | 47,984 | $ | 28,679 | |||||
Criticized loans (b) | $ | 191,355 | $ | 194,016 | $ | 126,619 | |||||
Classified loans (c) | 89,604 | 106,547 | 72,518 | ||||||||
Asset Quality Ratios: | |||||||||||
Nonaccrual loans as a percent of total loans (d) | 0.67 | % | 0.78 | % | 0.76 | % | |||||
NPLs as a percent of total loans (d)(e) | 0.77 | % | 0.86 | % | 0.82 | % | |||||
NPAs as a percent of total assets (d)(e) | 0.63 | % | 0.68 | % | 0.59 | % | |||||
NPAs as a percent of total loans and OREO (d)(e) | 0.96 | % | 1.07 | % | 0.84 | % | |||||
Allowance for credit losses as a percent of nonaccrual loans (d) | 168.91 | % | 184.00 | % | 195.24 | % | |||||
Allowance for credit losses as a percent of NPLs (d)(e) | 146.39 | % | 166.20 | % | 180.14 | % | |||||
Criticized loans as a percent of total loans (b)(d) | 4.07 | % | 4.33 | % | 3.72 | % | |||||
Classified loans as a percent of total loans (c)(d) | 1.90 | % | 2.38 | % | 2.13 | % |
(Dollars in thousands) | 2022 | 2021 | 2020 | ||||||||
Non-interest-bearing deposits (a) | $ | 1,589,402 | $ | 1,641,422 | $ | 997,323 | |||||
Interest-bearing deposits: | |||||||||||
Interest-bearing demand accounts (a) | 1,160,182 | 1,167,460 | 692,113 | ||||||||
Savings accounts | 1,068,547 | 1,036,738 | 628,190 | ||||||||
Retail CDs | 530,236 | 643,759 | 445,930 | ||||||||
Money market deposit accounts | 617,029 | 651,169 | 591,373 | ||||||||
Governmental deposit accounts | 625,965 | 617,259 | 385,384 | ||||||||
Brokered deposits | 125,580 | 104,745 | 170,146 | ||||||||
Total interest-bearing deposits | 4,127,539 | 4,221,130 | 2,913,136 | ||||||||
Total deposits | $ | 5,716,941 | $ | 5,862,552 | $ | 3,910,459 |
(Dollars in thousands) | 2022 | 2021 | 2020 | ||||||||
3 months or less | $ | 54,471 | $ | 71,374 | $ | 55,402 | |||||
Over 3 to 6 months | 39,031 | 74,529 | 56,516 | ||||||||
Over 6 to 12 months | 58,342 | 83,094 | 36,448 | ||||||||
Over 12 months | 110,972 | 90,864 | 70,452 | ||||||||
Total | $ | 262,816 | $ | 319,861 | $ | 218,818 |
(Dollars in thousands) | 2022 | 2021 | 2020 | ||||||||
Short-term borrowings: | |||||||||||
FHLB overnight borrowings | $ | 400,000 | $ | — | $ | — | |||||
FHLB 90-day advances | — | 40,000 | — | ||||||||
Current portion of long-term FHLB advances | — | 15,000 | 20,000 | ||||||||
Repurchase agreements | 100,138 | 111,482 | 53,261 | ||||||||
Total short-term borrowings | 500,138 | 166,482 | 73,261 | ||||||||
Long-term borrowings: | |||||||||||
FHLB advances | 34,158 | 85,825 | 102,957 | ||||||||
Vantage non-recourse debt | 53,147 | — | — | ||||||||
Junior subordinated debt securities | 13,788 | 13,650 | 7,611 | ||||||||
Total long-term borrowings | 101,093 | 99,475 | 110,568 | ||||||||
Total borrowed funds | $ | 601,231 | $ | 265,957 | $ | 183,829 | |||||
(Dollars in thousands) | 2022 | 2021 | 2020 | ||||||||
Capital Amounts: | |||||||||||
Common equity tier 1 | $ | 604,566 | $ | 577,565 | $ | 409,400 | |||||
Tier 1 | 618,354 | 591,215 | 417,011 | ||||||||
Total (tier 1 and tier 2) | 662,421 | 648,948 | 456,384 | ||||||||
Net risk-weighted assets | $ | 5,071,240 | $ | 4,614,259 | $ | 3,146,767 | |||||
Capital Ratios: | |||||||||||
Common equity tier 1 | 11.92 | % | 12.52 | % | 13.01 | % | |||||
Tier 1 | 12.19 | % | 12.81 | % | 13.25 | % | |||||
Total (tier 1 and tier 2) | 13.06 | % | 14.06 | % | 14.50 | % | |||||
Tier 1 leverage ratio | 8.92 | % | 8.67 | % | 8.97 | % |
(Dollars in thousands) | 2022 | 2021 | 2020 | ||||||||
Tangible equity: | |||||||||||
Total stockholders' equity | $ | 785,328 | $ | 845,025 | $ | 575,673 | |||||
Less: goodwill and other intangible assets | 326,329 | 291,009 | 184,597 | ||||||||
Tangible equity | $ | 458,999 | $ | 554,016 | $ | 391,076 | |||||
Tangible assets: | |||||||||||
Total assets | $ | 7,207,304 | $ | 7,063,521 | $ | 4,760,764 | |||||
Less: goodwill and other intangible assets | 326,329 | 291,009 | 184,597 | ||||||||
Tangible assets | $ | 6,880,975 | $ | 6,772,512 | $ | 4,576,167 | |||||
Tangible book value per common share: | |||||||||||
Tangible equity | $ | 458,999 | $ | 554,016 | $ | 391,076 | |||||
Common shares outstanding | 28,287,837 | 28,297,771 | 19,563,979 | ||||||||
Tangible book value per common share | $ | 16.23 | $ | 19.58 | $ | 19.99 | |||||
Tangible equity to tangible assets ratio: | |||||||||||
Tangible equity | $ | 458,999 | $ | 554,016 | $ | 391,076 | |||||
Tangible assets | $ | 6,880,975 | $ | 6,772,512 | $ | 4,576,167 | |||||
Tangible equity to tangible assets | 6.67 | % | 8.18 | % | 8.55 | % | |||||
Immediate and Sustained Shift in Interest Rates | Net Interest Income | Economic Value of Equity | ||||||
+ / - 100 basis points | -5% | -10% | ||||||
+ / - 200 basis points | -10% | -15% | ||||||
+ / - 300 basis points | -15% | -20% |
Increase (Decrease) in Interest Rates | Estimated Increase (Decrease) in Net Interest Income | Estimated Decrease in Economic Value of Equity | |||||||||||||||||||||||||||||||||||||||
(in Basis Points) | December 31, 2022 | December 31, 2021 | December 31, 2022 | December 31, 2021 | |||||||||||||||||||||||||||||||||||||
300 | $ | 13,000 | 4.4 | % | $ | 24,903 | 11.7 | % | $ | (82,959) | (5.4) | % | $ | (24,232) | (2.0) | % | |||||||||||||||||||||||||
200 | 8,716 | 3.0 | % | 16,312 | 7.7 | % | (55,809) | (3.6) | % | (16,541) | (1.3) | % | |||||||||||||||||||||||||||||
100 | 4,380 | 1.5 | % | 7,899 | 3.7 | % | (28,157) | (1.8) | % | (5,308) | (0.4) | % | |||||||||||||||||||||||||||||
(100) | (11,404) | (3.9) | % | (8,615) | (4.1) | % | (21,124) | (1.4) | % | (91,568) | (7.4) | % | |||||||||||||||||||||||||||||
(200) | (27,659) | (9.4) | % | (13,203) | (6.2) | % | (80,484) | (5.2) | % | (170,092) | (13.8) | % | |||||||||||||||||||||||||||||
(300) | (43,728) | (14.8) | % | (13,203) | (6.2) | % | (152,152) | (9.8) | % | (170,092) | (13.8) | % |
Activity or Obligation | Note | ||||
Off-balance sheet credit-related financial instruments | 16 | ||||
Operating lease obligations | 6 | ||||
Long-term borrowing obligations | 10 |
By: /s/ | CHARLES W. SULERZYSKI | By: /s/ | KATIE BAILEY | |||||||||||
Charles W. Sulerzyski | Katie Bailey | |||||||||||||
President and Chief Executive Officer | Executive Vice President, | |||||||||||||
Chief Financial Officer and Treasurer |
/s/ Ernst & Young LLP |
Accounting for the Allowance for Credit Losses | |||||
Description of the Matter | As discussed in Note 1 and Note 4 of the financial statements, management estimates the allowance for credit losses (ACL) based on information about past events, including historical experience, current conditions and reasonable and supportable forecasts that affect the collectability of the reported amount. The ACL is made up of both a quantitative modeled component as well as a qualitative component. The methodology for determining the quantitative component includes (1) a pooled component for loans that exhibit similar risk characteristics and (2) a specific component for those loans that do not exhibit similar risk characteristics. For loans exhibiting similar risk characteristics, the Company uses a loss driver method, which analyzes one or more economic variables to the change in default rate using a regression analysis, and a discounted cash flow methodology in determining an ACL for each loan segment. Management applies judgment in determining the extent of qualitative factors used in the qualitative component to adjust the loss rates for loan segments to reflect the impact these factors may have on expected losses in the loan portfolio. These include economic conditions, collateral, concentrations, troubled assets, Peoples' loss trends, peer loss trends, delinquency trends, portfolio composition and loan growth, underwriting, and certain other risks. The Company’s loan and lease portfolio totaled $4.71 billion as of December 31, 2022, and the associated ACL was $53.2 million. Auditing management’s estimate of the ACL involves a high degree of subjectivity due to the judgment required in assessing whether the economic forecast used is reasonable and supportable. Management’s determination of the economic forecast used in calculating the modelled ACL is highly judgmental and has a significant effect on the ACL. |
How We Addressed the Matter in Our Audit | We obtained an understanding of the Company’s processes for establishing the ACL through the year ended December 31, 2022. We evaluated the design and tested the operating effectiveness of the Company’s controls over the ACL process, which included, among others, management’s review and approval controls designed to assess and challenge whether the economic forecast used is reasonable and supportable. To test whether the economic forecast utilized by the Company in calculating the ACL was reasonable and supportable, our audit procedures included, among others, the following: 1) We obtained corroborative information, including employment statistics, economic reports and alternative economic forecasts, and considered any contrary evidence; 2) We evaluated the reliability of the external information source used by the Company in determining the economic forecast; 3) We verified the economic variables from the external information source were accurately input into the Company’s model used in estimating the ACL; 4) We compared the total ACL to the Company’s historical losses, considering changes in the current economic environment to evaluate whether the ACL appropriately reflected losses expected in the portfolio; and 5) We evaluated whether the total ACL appropriately reflected losses expected in the loan portfolio by comparing to peer bank data. |
/s/ Ernst & Young LLP |
December 31, | ||||||||
(Dollars in thousands) | 2022 | 2021 | ||||||
Assets | ||||||||
Cash and cash equivalents: | ||||||||
Cash and due from banks | $ | 94,679 | $ | 74,354 | ||||
Interest-bearing deposits in other banks | 59,343 | 341,373 | ||||||
Total cash and cash equivalents | 154,022 | 415,727 | ||||||
Available-for-sale investment securities, at fair value (amortized cost of $1,300,719 at December 31, 2022 and $1,283,146 at December 31, 2021) (a) | 1,131,399 | 1,275,493 | ||||||
Held-to-maturity investment securities, at amortized cost (fair value of $478,509 at December 31, 2022 and $369,955 at December 31, 2021) (a) | 560,212 | 374,129 | ||||||
Other investment securities | 51,609 | 33,987 | ||||||
Total investment securities (a) | 1,743,220 | 1,683,609 | ||||||
Loans and leases, net of deferred fees and costs (b) | 4,707,150 | 4,481,600 | ||||||
Allowance for credit losses | (53,162) | (63,967) | ||||||
Net loans | 4,653,988 | 4,417,633 | ||||||
Loans held for sale | 2,140 | 3,791 | ||||||
Bank premises and equipment, net of accumulated depreciation | 82,934 | 89,260 | ||||||
Bank owned life insurance | 105,292 | 73,358 | ||||||
Goodwill | 292,397 | 264,193 | ||||||
Other intangible assets | 33,932 | 26,816 | ||||||
Other assets | 139,379 | 89,134 | ||||||
Total assets | $ | 7,207,304 | $ | 7,063,521 | ||||
Liabilities | ||||||||
Deposits: | ||||||||
Non-interest-bearing | $ | 1,589,402 | $ | 1,641,422 | ||||
Interest-bearing | 4,127,539 | 4,221,130 | ||||||
Total deposits | 5,716,941 | 5,862,552 | ||||||
Short-term borrowings | 500,138 | 166,482 | ||||||
Long-term borrowings | 101,093 | 99,475 | ||||||
Accrued expenses and other liabilities | 103,804 | 89,987 | ||||||
Total liabilities | 6,421,976 | 6,218,496 | ||||||
Stockholders’ Equity | ||||||||
Preferred stock, no par value, 50,000 shares authorized and no shares issued at December 31, 2022 and December 31, 2021 | — | — | ||||||
Common stock, no par value, 50,000,000 shares authorized, 29,857,920 shares issued at December 31, 2022 and 29,814,401 shares issued at December 31, 2021, including shares held in treasury | 686,450 | 686,282 | ||||||
Retained earnings | 265,936 | 207,076 | ||||||
Accumulated other comprehensive loss, net of deferred income taxes | (127,136) | (11,619) | ||||||
Treasury stock, at cost, 1,643,461 shares at December 31, 2022 and 1,577,359 shares at December 31, 2021 | (39,922) | (36,714) | ||||||
Total stockholders’ equity | 785,328 | 845,025 | ||||||
Total liabilities and stockholders’ equity | $ | 7,207,304 | $ | 7,063,521 |
(Dollars in thousands, except per share data) | 2022 | 2021 | 2020 | ||||||||
Interest income: | |||||||||||
Interest and fees on loans | $ | 234,765 | $ | 166,081 | $ | 140,090 | |||||
Interest and dividends on taxable investment securities | 28,903 | 15,033 | 14,188 | ||||||||
Interest on tax-exempt investment securities | 4,176 | 3,362 | 2,484 | ||||||||
Other interest income | 1,710 | 313 | 342 | ||||||||
Total interest income | 269,554 | 184,789 | 157,104 | ||||||||
Interest expense: | |||||||||||
Interest on deposits | 9,171 | 9,922 | 13,500 | ||||||||
Interest on short-term borrowings | 2,661 | 541 | 2,571 | ||||||||
Interest on long-term borrowings | 4,280 | 1,773 | 2,110 | ||||||||
Total interest expense | 16,112 | 12,236 | 18,181 | ||||||||
Net interest income | 253,442 | 172,553 | 138,923 | ||||||||
(Recovery of) Provision for credit losses (a) | (3,510) | 731 | 26,254 | ||||||||
Net interest income after provision for credit losses | 256,952 | 171,822 | 112,669 | ||||||||
Non-interest income: | |||||||||||
Electronic banking income | 21,094 | 18,010 | 14,246 | ||||||||
Trust and investment income | 16,391 | 16,456 | 13,662 | ||||||||
Insurance income | 15,727 | 15,252 | 14,042 | ||||||||
Deposit account service charges | 14,583 | 10,143 | 9,418 | ||||||||
Lease income | 4,267 | 1,293 | — | ||||||||
Bank owned life insurance income | 2,624 | 1,767 | 1,977 | ||||||||
Mortgage banking income | 1,397 | 3,439 | 6,499 | ||||||||
Net (loss) gain on asset disposals and other transactions | (616) | 493 | (290) | ||||||||
Net loss on investment securities | (61) | (862) | (368) | ||||||||
Other non-interest income (b) | 3,430 | 2,894 | 4,486 | ||||||||
Total non-interest income | 78,836 | 68,885 | 63,672 | ||||||||
Non-interest expense: | |||||||||||
Salaries and employee benefit costs | 112,690 | 94,612 | 76,361 | ||||||||
Net occupancy and equipment expense | 19,516 | 14,918 | 12,808 | ||||||||
Data processing and software expense | 14,241 | 10,542 | 7,441 | ||||||||
Professional fees | 12,094 | 15,783 | 6,912 | ||||||||
Electronic banking expense | 9,231 | 8,885 | 7,777 | ||||||||
Amortization of other intangible assets | 7,763 | 4,775 | 3,223 | ||||||||
Marketing expense | 3,728 | 3,658 | 2,101 | ||||||||
FDIC insurance expense | 3,702 | 1,976 | 1,302 | ||||||||
Franchise tax expense | 3,487 | 3,357 | 3,506 | ||||||||
Other loan expenses | 2,735 | 2,001 | 1,584 | ||||||||
Communication expense | 2,484 | 1,657 | 1,134 | ||||||||
Other non-interest expense | 15,476 | 21,573 | 9,546 | ||||||||
Total non-interest expense | 207,147 | 183,737 | 133,695 | ||||||||
Income before income taxes | 128,641 | 56,970 | 42,646 | ||||||||
Income tax expense | 27,349 | 9,415 | 7,879 | ||||||||
Net income | $ | 101,292 | $ | 47,555 | $ | 34,767 | |||||
Earnings per common share – basic | $ | 3.61 | $ | 2.17 | $ | 1.74 | |||||
Earnings per common share – diluted | $ | 3.60 | $ | 2.15 | $ | 1.73 | |||||
Weighted-average number of common shares outstanding – basic | 27,908,022 | 21,816,511 | 19,721,772 | ||||||||
Weighted-average number of common shares outstanding – diluted | 27,999,602 | 21,959,883 | 19,843,806 |
(Dollars in thousands) | 2022 | 2021 | 2020 | ||||||||
Net income | $ | 101,292 | $ | 47,555 | $ | 34,767 | |||||
Other comprehensive (loss) income: | |||||||||||
Available-for-sale investment securities: | |||||||||||
Gross unrealized holding (loss) gain arising in the period | (161,730) | (26,985) | 11,394 | ||||||||
Related tax benefit (expense) | 37,733 | 5,777 | (2,393) | ||||||||
Reclassification adjustment for net loss included in net income | 61 | 862 | 368 | ||||||||
Related tax expense | (14) | (192) | (77) | ||||||||
Net effect on other comprehensive (loss) income | (123,950) | (20,538) | 9,292 | ||||||||
Defined benefit plans: | |||||||||||
Net gain (loss) arising during the period | 76 | 2,318 | (1,072) | ||||||||
Related tax (expense) benefit | (18) | (518) | 225 | ||||||||
Amortization of unrecognized loss on service benefit plans | 63 | 103 | 127 | ||||||||
Related tax benefit | (15) | (23) | (27) | ||||||||
Reclassification from accumulated other comprehensive income ("AOCI") | 185 | 143 | 1,054 | ||||||||
Related tax benefit | (43) | (32) | (221) | ||||||||
Net effect on other comprehensive income | 248 | 1,991 | 86 | ||||||||
Cash flow hedges: | |||||||||||
Net gains (losses) arising during the period | 10,606 | 6,999 | (8,376) | ||||||||
Related tax (expense) benefit | (2,421) | (1,407) | 1,759 | ||||||||
Net effect on other comprehensive income (loss) | 8,185 | 5,592 | (6,617) | ||||||||
Total other comprehensive (loss) income, net of tax | (115,517) | (12,955) | 2,761 | ||||||||
Total comprehensive (loss) income | $ | (14,225) | $ | 34,600 | $ | 37,528 |
Common Stock | Retained Earnings | Accumulated Other Comprehensive (Loss) Income | Treasury Stock | Total Stockholders' Equity | |||||||||||||
(Dollars in thousands) | |||||||||||||||||
Balance, December 31, 2019 | $ | 420,876 | $ | 187,149 | $ | (1,425) | $ | (12,207) | $ | 594,393 | |||||||
Net income | — | 34,767 | — | — | 34,767 | ||||||||||||
Other comprehensive income, net of tax | — | — | 2,761 | — | 2,761 | ||||||||||||
Cash dividends declared | — | (27,516) | — | — | (27,516) | ||||||||||||
Reissuance of treasury stock for common share awards | (2,729) | — | — | 2,729 | — | ||||||||||||
Reissuance of treasury stock for deferred compensation plan for Boards of Directors | — | — | — | 59 | 59 | ||||||||||||
Repurchase of treasury stock in connection with employee incentive plan and under compensation plan for Boards of Directors | — | — | — | (1,128) | (1,128) | ||||||||||||
Common shares repurchased under share repurchase program | — | — | — | (29,281) | (29,281) | ||||||||||||
Common shares issued under dividend reinvestment plan | 799 | — | — | — | 799 | ||||||||||||
Common shares issued under compensation plan for Boards of Directors | 17 | — | — | 360 | 377 | ||||||||||||
Common shares issued under performance unit awards, net of tax | 41 | — | — | 138 | 179 | ||||||||||||
Stock-based compensation | 3,556 | — | — | — | 3,556 | ||||||||||||
Common shares issued under employee stock purchase plan | (24) | — | — | 440 | 416 | ||||||||||||
$ | — | (3,709) | $ | — | $ | — | (3,709) | ||||||||||
Balance, December 31, 2020 | $ | 422,536 | $ | 190,691 | $ | 1,336 | $ | (38,890) | $ | 575,673 | |||||||
Net income | — | 47,555 | — | — | 47,555 | ||||||||||||
Other comprehensive loss, net of tax | — | — | (12,955) | — | (12,955) | ||||||||||||
Cash dividends declared | — | (31,170) | — | — | (31,170) | ||||||||||||
Reissuance of treasury stock for common share awards | (2,740) | — | — | 2,740 | — | ||||||||||||
Reissuance of treasury stock for deferred compensation plan for Boards of Directors | — | — | — | 74 | 74 | ||||||||||||
Repurchase of treasury stock in connection with employee incentive plan and under compensation plan for Boards of Directors | — | — | — | (1,306) | (1,306) | ||||||||||||
Common shares issued under dividend reinvestment plan | 910 | — | — | — | 910 | ||||||||||||
Common shares issued under compensation plan for Boards of Directors | 98 | — | — | 276 | 374 | ||||||||||||
Stock-based compensation | 3,436 | — | — | — | 3,436 | ||||||||||||
Common shares issued under employee stock purchase plan | 143 | — | — | 392 | 535 | ||||||||||||
Issuance of common shares related to the Premier Merger | 261,899 | — | — | — | 261,899 | ||||||||||||
Balance, December 31, 2021 | $ | 686,282 | $ | 207,076 | $ | (11,619) | $ | (36,714) | $ | 845,025 | |||||||
PEOPLES BANCORP INC. AND SUBSIDIARIES | |||||||||||||||||
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (CONTINUED) | |||||||||||||||||
Common Stock | Retained Earnings | Accumulated Other Comprehensive (Loss) Income | Treasury Stock | Total Stockholders' Equity | |||||||||||||
(Dollars in thousands) | |||||||||||||||||
Net income | $ | — | $ | 101,292 | $ | — | $ | — | $ | 101,292 | |||||||
Other comprehensive loss, net of tax | — | — | (115,517) | — | (115,517) | ||||||||||||
Cash dividends declared | — | (42,432) | — | — | (42,432) | ||||||||||||
Reissuance of treasury stock for common share awards | (4,989) | — | — | 4,989 | — | ||||||||||||
Reissuance of treasury stock for deferred compensation plan for Boards of Directors | — | — | — | 78 | 78 | ||||||||||||
Repurchase of treasury stock in connection with employee incentive plan and under compensation plan for Boards of Directors | — | — | — | (1,745) | (1,745) | ||||||||||||
Common shares repurchased under share repurchase program | — | — | — | (7,407) | (7,407) | ||||||||||||
Common shares issued under dividend reinvestment plan | 1,272 | — | — | — | 1,272 | ||||||||||||
Common shares issued under compensation plan for Boards of Directors | 83 | — | — | 423 | 506 | ||||||||||||
Common shares issued under employee stock purchase plan | 95 | — | — | 454 | 549 | ||||||||||||
Stock-based compensation | 3,707 | — | — | — | 3,707 | ||||||||||||
Balance, December 31, 2022 | $ | 686,450 | $ | 265,936 | $ | (127,136) | $ | (39,922) | $ | 785,328 |
(Dollars in thousands) | 2022 | 2021 | 2020 | ||||||||
Operating activities: | |||||||||||
Net income | $ | 101,292 | $ | 47,555 | $ | 34,767 | |||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Depreciation, amortization and accretion, net | 17,319 | 24,643 | 25,639 | ||||||||
(Recovery of) provision for credit losses | (3,510) | 731 | 26,254 | ||||||||
Bank owned life insurance income | (2,624) | (1,767) | (1,977) | ||||||||
Net loss on investment securities | 61 | 862 | 368 | ||||||||
Fair value adjustment on equity investment securities | (2) | (111) | (660) | ||||||||
Loans originated for sale | (48,081) | (94,154) | (260,974) | ||||||||
Proceeds from sales of loans | 50,442 | 157,349 | 268,363 | ||||||||
Net gains on sales of loans | (994) | (2,994) | (6,446) | ||||||||
Deferred income tax expense (benefit) | 18,566 | 2,874 | (8,101) | ||||||||
(Decrease) increase in accrued expenses | (4,692) | 2,433 | 799 | ||||||||
(Increase) decrease in interest receivable | (5,836) | 1,435 | (865) | ||||||||
Increase in other assets | 1,629 | 2,874 | 1,006 | ||||||||
Change in lease right-of-use assets and lease liabilities | (38) | 509 | 48 | ||||||||
Other, net | (3,693) | 14,181 | 7,262 | ||||||||
Net cash provided by operating activities | 119,839 | 156,420 | 85,483 | ||||||||
Investing activities: | |||||||||||
Available-for-sale investment securities: | |||||||||||
Purchases | (246,155) | (852,542) | (261,395) | ||||||||
Proceeds from sales | 28,663 | 544,096 | 82,610 | ||||||||
Proceeds from principal payments, calls and prepayments | 190,143 | 297,693 | 356,854 | ||||||||
Held-to-maturity investment securities: | |||||||||||
Purchases | (206,768) | (316,346) | (40,112) | ||||||||
Proceeds from principal payments | 19,033 | 7,333 | 5,123 | ||||||||
Other investment securities: | |||||||||||
Purchases | (23,632) | (1,415) | (6,261) | ||||||||
Proceeds from sales | 5,784 | 9,299 | 12,180 | ||||||||
Net (increase) decrease in loans held for investment | (58,142) | 113,467 | (444,128) | ||||||||
Net expenditures for premises and equipment | (6,753) | (6,685) | (4,299) | ||||||||
Proceeds from sales of other real estate owned | 572 | 2,073 | 269 | ||||||||
Investment in bank owned life insurance | (30,000) | — | — | ||||||||
Proceeds from bank owned life insurance | 689 | — | 108 | ||||||||
Business acquisitions, net of cash received | (85,791) | 132,719 | (94,856) | ||||||||
Investment in limited partnership and tax credit funds | (1,857) | (4,125) | (12) | ||||||||
Net cash used in investing activities | (414,214) | (74,433) | (393,919) | ||||||||
Financing activities: | |||||||||||
Net (decrease) increase in non-interest-bearing deposits | (52,020) | 150,986 | 326,115 | ||||||||
Net (decrease) increase in interest-bearing deposits | (93,082) | 49,774 | 292,822 | ||||||||
Net increase (decrease) in short-term borrowings | 328,611 | 14,414 | (263,716) | ||||||||
Proceeds from long-term borrowings | 24,804 | — | 50,000 | ||||||||
Payments on long-term borrowings | (125,345) | (2,132) | (2,715) | ||||||||
Cash dividends paid | (42,372) | (31,002) | (27,052) | ||||||||
Repurchase of treasury stock under share repurchase program | (7,407) | — | (29,281) | ||||||||
Purchase of treasury stock in connection with employee incentive program and compensation plan for Boards of Directors to be held as treasury stock | (1,745) | (1,306) | (1,128) | ||||||||
Proceeds from issuance of common shares | 1,226 | 906 | 594 | ||||||||
Contingent consideration payments made after a business acquisition | — | — | (296) | ||||||||
Net cash provided by financing activities | 32,670 | 181,640 | 345,343 | ||||||||
Net (decrease) increase in cash and cash equivalents | (261,705) | 263,627 | 36,907 | ||||||||
Cash and cash equivalents at beginning of period | 415,727 | 152,100 | 115,193 | ||||||||
Cash and cash equivalents at end of period | $ | 154,022 | $ | 415,727 | $ | 152,100 | |||||
(Dollars in thousands) | 2022 | 2021 | 2020 | ||||||||
Supplemental cash flow information: | |||||||||||
Interest paid | $ | 16,270 | $ | 13,391 | $ | 18,939 | |||||
Income taxes paid | 4,131 | 6,693 | 12,500 | ||||||||
Supplemental noncash disclosures: | |||||||||||
Transfers from loans to other real estate owned | $ | 110 | $ | 298 | $ | 296 | |||||
Noncash recognition of new leases | 880 | 2,482 | 62 |
Recurring Fair Value Measurements at Reporting Date | |||||||||||||||||
December 31, 2022 | December 31, 2021 | ||||||||||||||||
(Dollars in thousands) | Level 1 | Level 2 | Level 1 | Level 2 | |||||||||||||
Assets: | |||||||||||||||||
Available-for-sale investment securities: | |||||||||||||||||
Obligations of: | |||||||||||||||||
U.S. Treasury and government agencies | $ | 152,422 | $ | — | $ | 35,604 | $ | — | |||||||||
U.S. government sponsored agencies | — | 88,115 | — | 81,739 | |||||||||||||
States and political subdivisions | — | 225,882 | — | 259,319 | |||||||||||||
Residential mortgage-backed securities | — | 604,653 | — | 828,517 | |||||||||||||
Commercial mortgage-backed securities | — | 50,049 | — | 63,519 | |||||||||||||
Bank-issued trust preferred securities | — | 10,278 | — | 6,795 | |||||||||||||
Total available-for-sale securities | 152,422 | 978,977 | 35,604 | 1,239,889 | |||||||||||||
Equity investment securities (a) | 147 | 199 | 160 | 184 | |||||||||||||
Derivative assets (b) | — | 34,123 | — | 12,163 | |||||||||||||
Liabilities: | |||||||||||||||||
Derivative liabilities (c) | $ | — | $ | 28,529 | $ | — | $ | 17,183 |
Non-Recurring Fair Value Measurements at Reporting Date | |||||||||||||||||
December 31, 2022 | December 31, 2021 | ||||||||||||||||
(Dollars in thousands) | Level 2 | Level 3 | Level 2 | Level 3 | |||||||||||||
Collateral dependent loans | $ | — | $ | 10,354 | $ | — | $ | 430 | |||||||||
Loans held for sale (a) | 1,254 | — | 418 | — | |||||||||||||
Other real estate owned ("OREO") | — | 55 | — | 87 | |||||||||||||
Servicing rights (b)(c) | $ | — | $ | — | — | $ | 22 |
Fair Value Measurements of Other Financial Instruments | ||||||||||||||||||||
(Dollars in thousands) | Fair Value Hierarchy Level | December 31, 2022 | December 31, 2021 | |||||||||||||||||
Carrying Amount | Fair Value | Carrying Amount | Fair Value | |||||||||||||||||
Assets: | ||||||||||||||||||||
Cash and cash equivalents | 1 | $ | 154,022 | $ | 154,022 | $ | 415,727 | $ | 415,727 | |||||||||||
Held-to-maturity investment securities: | ||||||||||||||||||||
Obligations of: | ||||||||||||||||||||
U.S. government sponsored agencies | 2 | 132,366 | 123,020 | 36,431 | 35,513 | |||||||||||||||
States and political subdivisions (a) | 2 | 145,263 | 108,776 | 151,688 | 150,138 | |||||||||||||||
Residential mortgage-backed securities | 2 | 176,215 | 157,998 | 110,708 | 110,159 | |||||||||||||||
Commercial mortgage-backed securities | 2 | 101,861 | 85,354 | 75,588 | 74,145 | |||||||||||||||
Commercial mortgage-backed securities | 3 | 4,748 | 3,361 | — | — | |||||||||||||||
Total held-to-maturity securities | 560,453 | 478,509 | 374,415 | 369,955 | ||||||||||||||||
Other investment securities: | ||||||||||||||||||||
Other investment securities at cost: | ||||||||||||||||||||
Federal Home Loan Bank ("FHLB") stock | N/A | 26,605 | 26,605 | 17,308 | 17,308 | |||||||||||||||
Federal Reserve Bank ("FRB") stock | N/A | 21,231 | 21,231 | 13,311 | 13,311 | |||||||||||||||
Total other investment securities at cost | 47,836 | 47,836 | 30,619 | 30,619 | ||||||||||||||||
Other investment securities at fair value: | ||||||||||||||||||||
Nonqualified deferred compensation (b) | 1 | 2,048 | 2,048 | 2,240 | 2,240 | |||||||||||||||
Other investment securities (c) | 2 | 1,379 | 1,379 | 784 | 784 | |||||||||||||||
Total other investment securities at fair value | 51,263 | 51,263 | 33,643 | 33,643 | ||||||||||||||||
Loans and leases, net of deferred fees and cost (d) | 3 | 4,707,150 | 4,516,695 | 4,481,600 | 4,510,605 | |||||||||||||||
Bank owned life insurance | 2 | 105,292 | 105,292 | 73,358 | 73,358 | |||||||||||||||
Financial liabilities: | ||||||||||||||||||||
Deposits | 2 | $ | 5,716,941 | $ | 4,682,491 | $ | 5,862,552 | $ | 5,546,552 | |||||||||||
Short-term borrowings | 2 | 500,138 | 504,584 | 166,482 | 164,990 | |||||||||||||||
Long-term borrowings | 2 | 101,093 | 101,992 | 99,475 | 101,664 |
(Dollars in thousands) | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||||
2022 | ||||||||||||||
Obligations of: | ||||||||||||||
U.S. Treasury and government agencies | $ | 158,473 | $ | — | $ | (6,051) | $ | 152,422 | ||||||
U.S. government sponsored agencies | 101,753 | 18 | (13,656) | 88,115 | ||||||||||
States and political subdivisions | 261,612 | 12 | (35,742) | 225,882 | ||||||||||
Residential mortgage-backed securities | 707,025 | 1,017 | (103,389) | 604,653 | ||||||||||
Commercial mortgage-backed securities | 61,091 | — | (11,042) | 50,049 | ||||||||||
Bank-issued trust preferred securities | 10,765 | 57 | (544) | 10,278 | ||||||||||
Total available-for-sale securities | $ | 1,300,719 | $ | 1,104 | $ | (170,424) | $ | 1,131,399 | ||||||
2021 | ||||||||||||||
Obligations of: | ||||||||||||||
U.S. Treasury and government agencies | $ | 35,609 | $ | 12 | $ | (17) | $ | 35,604 | ||||||
U.S. government sponsored agencies | 83,019 | 58 | (1,338) | 81,739 | ||||||||||
States and political subdivisions | 259,508 | 3,187 | (3,376) | 259,319 | ||||||||||
Residential mortgage-backed securities | 833,328 | 6,565 | (11,376) | 828,517 | ||||||||||
Commercial mortgage-backed securities | 64,971 | 42 | (1,494) | 63,519 | ||||||||||
Bank-issued trust preferred securities | 6,711 | 215 | (131) | 6,795 | ||||||||||
Total available-for-sale securities | $ | 1,283,146 | $ | 10,079 | $ | (17,732) | $ | 1,275,493 |
(Dollars in thousands) | 2022 | 2021 | 2020 | ||||||||
Gross gains realized | $ | 314 | $ | 1,184 | $ | 655 | |||||
Gross losses realized | 375 | 2,046 | 1,023 | ||||||||
Net (loss) gain realized | $ | (61) | $ | (862) | $ | (368) |
Less than 12 Months | 12 Months or More | Total | ||||||||||||||||||||||||||||||
(Dollars in thousands) | Fair Value | Unrealized Loss | No. of Securities | Fair Value | Unrealized Loss | No. of Securities | Fair Value | Unrealized Loss | ||||||||||||||||||||||||
2022 | ||||||||||||||||||||||||||||||||
Obligations of: | ||||||||||||||||||||||||||||||||
U.S. Treasury and government agencies | $ | 112,730 | $ | 2,772 | 13 | $ | 39,692 | $ | 3,279 | 11 | $ | 152,422 | $ | 6,051 | ||||||||||||||||||
U.S. government sponsored agencies | 15,166 | 249 | 17 | 66,706 | 13,407 | 18 | 81,872 | 13,656 | ||||||||||||||||||||||||
States and political subdivisions | 60,324 | 714 | 114 | 156,900 | 35,028 | 117 | 217,224 | 35,742 | ||||||||||||||||||||||||
Residential mortgage-backed securities | 104,959 | 8,087 | 105 | 488,452 | 95,302 | 139 | 593,411 | 103,389 | ||||||||||||||||||||||||
Commercial mortgage-backed securities | 1,874 | 129 | 2 | 48,175 | 10,913 | 21 | 50,049 | 11,042 | ||||||||||||||||||||||||
Bank-issued trust preferred securities | 4,400 | 100 | 3 | 3,556 | 444 | 2 | 7,956 | 544 | ||||||||||||||||||||||||
Total | $ | 299,453 | $ | 12,051 | 254 | $ | 803,481 | $ | 158,373 | 308 | $ | 1,102,934 | $ | 170,424 | ||||||||||||||||||
2021 | ||||||||||||||||||||||||||||||||
Obligations of: | ||||||||||||||||||||||||||||||||
U.S. Treasury and government agencies | $ | 16,914 | $ | 17 | 6 | $ | — | $ | — | — | $ | 16,914 | $ | 17 | ||||||||||||||||||
U.S. government sponsored agencies | 72,406 | 1,192 | 13 | 4,854 | 146 | 1 | 77,260 | 1,338 | ||||||||||||||||||||||||
States and political subdivisions | 101,397 | 2,075 | 71 | 30,853 | 1,301 | 11 | 132,250 | $ | 3,376 | |||||||||||||||||||||||
Residential mortgage-backed securities | 573,139 | 9,051 | 113 | 51,103 | 2,325 | 14 | 624,242 | 11,376 | ||||||||||||||||||||||||
Commercial mortgage-backed securities | 60,134 | 1,494 | 21 | — | — | — | 60,134 | 1,494 | ||||||||||||||||||||||||
Bank-issued trust preferred securities | 2,991 | 9 | 1 | 878 | 122 | 1 | 3,869 | 131 | ||||||||||||||||||||||||
Total | $ | 826,981 | $ | 13,838 | 225 | $ | 87,688 | $ | 3,894 | 27 | $ | 914,669 | $ | 17,732 |
(Dollars in thousands) | Within 1 Year | 1 to 5 Years | 5 to 10 Years | Over 10 Years | Total | ||||||||||||
Amortized cost | |||||||||||||||||
Obligations of: | |||||||||||||||||
U.S. Treasury and government agencies | $ | 53,010 | $ | 105,463 | $ | — | $ | — | $ | 158,473 | |||||||
U.S. government sponsored agencies | 7,028 | 41,440 | 45,016 | 8,269 | 101,753 | ||||||||||||
States and political subdivisions | 27,434 | 48,406 | 69,824 | 115,948 | 261,612 | ||||||||||||
Residential mortgage-backed securities | 18 | 1,595 | 57,748 | 647,664 | 707,025 | ||||||||||||
Commercial mortgage-backed securities | 1,090 | 4,089 | 30,901 | 25,011 | 61,091 | ||||||||||||
Bank-issued trust preferred securities | — | 4,265 | 6,500 | — | 10,765 | ||||||||||||
Total available-for-sale securities | $ | 88,580 | $ | 205,258 | $ | 209,989 | $ | 796,892 | $ | 1,300,719 | |||||||
Fair value | |||||||||||||||||
Obligations of: | |||||||||||||||||
U.S. Treasury and government agencies | $ | 51,957 | $ | 100,465 | $ | — | $ | — | $ | 152,422 | |||||||
U.S. government sponsored agencies | 6,933 | 37,643 | 37,513 | 6,026 | 88,115 | ||||||||||||
States and political subdivisions | 27,312 | 46,152 | 58,275 | 94,143 | 225,882 | ||||||||||||
Residential mortgage-backed securities | 18 | 1,524 | 52,232 | 550,879 | 604,653 | ||||||||||||
Commercial mortgage-backed securities | 1,080 | 3,751 | 25,520 | 19,698 | 50,049 | ||||||||||||
Bank-issued trust preferred securities | — | 4,313 | 5,965 | — | 10,278 | ||||||||||||
Total available-for-sale securities | $ | 87,300 | $ | 193,848 | $ | 179,505 | $ | 670,746 | $ | 1,131,399 | |||||||
Total weighted-average yield | 2.32 | % | 2.07 | % | 1.71 | % | 1.82 | % | 1.88 | % |
(Dollars in thousands) | Amortized Cost | Allowance for Credit Losses | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||||||
2022 | |||||||||||||||||
Obligations of: | |||||||||||||||||
U.S. government sponsored agencies | $ | 132,366 | $ | — | $ | 130 | $ | (9,476) | $ | 123,020 | |||||||
States and political subdivisions | 145,263 | (241) | 162 | (36,408) | 108,776 | ||||||||||||
Residential mortgage-backed securities | 176,215 | — | 244 | (18,461) | 157,998 | ||||||||||||
Commercial mortgage-backed securities | 106,609 | — | — | (17,894) | 88,715 | ||||||||||||
Total held-to-maturity securities | $ | 560,453 | $ | (241) | $ | 536 | $ | (82,239) | $ | 478,509 | |||||||
2021 | |||||||||||||||||
Obligations of: | |||||||||||||||||
U.S. government sponsored agencies | $ | 36,431 | $ | — | $ | 86 | $ | (1,004) | $ | 35,513 | |||||||
States and political subdivisions | 151,688 | (286) | 1,006 | (2,270) | 150,138 | ||||||||||||
Residential mortgage-backed securities | 110,708 | — | 370 | (919) | 110,159 | ||||||||||||
Commercial mortgage-backed securities | 75,588 | — | 182 | (1,625) | 74,145 | ||||||||||||
Total held-to-maturity securities | $ | 374,415 | $ | (286) | $ | 1,644 | $ | (5,818) | $ | 369,955 |
Less than 12 Months | 12 Months or More | Total | ||||||||||||||||||||||||||||||
(Dollars in thousands) | Fair Value | Unrealized Loss | No. of Securities | Fair Value | Unrealized Loss | No. of Securities | Fair Value | Unrealized Loss | ||||||||||||||||||||||||
2022 | ||||||||||||||||||||||||||||||||
Obligations of: | ||||||||||||||||||||||||||||||||
U.S. government sponsored agencies | $ | 59,905 | $ | 651 | 17 | $ | 29,306 | $ | 8,825 | 9 | $ | 89,211 | $ | 9,476 | ||||||||||||||||||
States and political subdivisions | 3,590 | 1,072 | 3 | 101,863 | 35,336 | 64 | 105,453 | 36,408 | ||||||||||||||||||||||||
Residential mortgage-backed securities | 71,582 | 2,904 | 21 | 72,862 | 15,557 | 18 | 144,444 | 18,461 | ||||||||||||||||||||||||
Commercial mortgage-backed securities | 26,869 | 650 | 8 | 61,846 | 17,244 | 29 | 88,715 | 17,894 | ||||||||||||||||||||||||
Total | $ | 161,946 | $ | 5,277 | 49 | $ | 265,877 | $ | 76,962 | 120 | $ | 427,823 | $ | 82,239 | ||||||||||||||||||
2021 | ||||||||||||||||||||||||||||||||
Obligations of: | ||||||||||||||||||||||||||||||||
U.S. government sponsored agencies | $ | 17,328 | $ | 504 | 6 | $ | 14,635 | $ | 500 | 2 | $ | 31,963 | $ | 1,004 | ||||||||||||||||||
States and political subdivisions | 61,954 | 1,041 | 34 | 27,328 | 1,229 | 6 | 89,282 | 2,270 | ||||||||||||||||||||||||
Residential mortgage-backed securities | 88,937 | 919 | 17 | — | — | — | 88,937 | 919 | ||||||||||||||||||||||||
Commercial mortgage-backed securities | 67,338 | 1,625 | 21 | — | — | — | 67,338 | 1,625 | ||||||||||||||||||||||||
Total | $ | 235,557 | $ | 4,089 | 78 | $ | 41,963 | $ | 1,729 | 8 | $ | 277,520 | $ | 5,818 |
(Dollars in thousands) | Within 1 Year | 1 to 5 Years | 5 to 10 Years | Over 10 Years | Total | ||||||||||||
Amortized cost | |||||||||||||||||
Obligations of: | |||||||||||||||||
U.S. government sponsored agencies | $ | 2,125 | $ | 20,012 | $ | 48,883 | $ | 61,346 | $ | 132,366 | |||||||
States and political subdivisions | — | 5,211 | 9,407 | 130,645 | 145,263 | ||||||||||||
Residential mortgage-backed securities | — | 1,036 | — | 175,179 | 176,215 | ||||||||||||
Commercial mortgage-backed securities | — | 12,026 | 31,438 | 63,145 | 106,609 | ||||||||||||
Total held-to-maturity securities | $ | 2,125 | $ | 38,285 | $ | 89,728 | $ | 430,315 | $ | 560,453 | |||||||
Fair value | |||||||||||||||||
Obligations of: | |||||||||||||||||
U.S. government sponsored agencies | $ | 2,093 | $ | 19,194 | $ | 48,320 | $ | 53,413 | $ | 123,020 | |||||||
States and political subdivisions | — | 4,857 | 7,809 | 96,110 | 108,776 | ||||||||||||
Residential mortgage-backed securities | — | 1,006 | — | 156,992 | 157,998 | ||||||||||||
Commercial mortgage-backed securities | — | 11,126 | 27,832 | 49,757 | 88,715 | ||||||||||||
Total held-to-maturity securities | $ | 2,093 | $ | 36,183 | $ | 83,961 | $ | 356,272 | $ | 478,509 | |||||||
Total weighted-average yield | 0.98 | % | 1.97 | % | 4.17 | % | 3.02 | % | 3.12 | % |
(Dollars in thousands) | 2022 | 2021 | ||||||
FHLB stock | $ | 26,605 | $ | 17,308 | ||||
FRB stock | 21,231 | 13,311 | ||||||
Nonqualified deferred compensation | 2,048 | 2,240 | ||||||
Equity investment securities | 346 | 344 | ||||||
Other investment securities | 1,379 | 784 | ||||||
Total other investment securities | $ | 51,609 | $ | 33,987 |
Carrying Amount | ||||||||
(Dollars in thousands) | 2022 | 2021 | ||||||
Securing public and trust department deposits, and repurchase agreements: | ||||||||
Available-for-sale | $ | 779,244 | $ | 795,496 | ||||
Held-to-maturity | 312,921 | 160,643 | ||||||
Securing collateral for cash flow hedge swaps: | ||||||||
Available-for-sale | — | 18,208 | ||||||
Held-to-maturity | — | 9,936 | ||||||
Securing additional borrowing capacity at the FHLB and the FRB: | ||||||||
Available-for-sale | 3,972 | 6,504 | ||||||
Held-to-maturity | 128,870 | 549 |
(Dollars in thousands) | 2022 | 2021 | ||||||
Construction | $ | 246,941 | $ | 210,232 | ||||
Commercial real estate, other | 1,423,518 | 1,550,081 | ||||||
Commercial and industrial | 892,634 | 891,392 | ||||||
Premium finance | 159,197 | 136,136 | ||||||
Leases | 345,131 | 122,508 | ||||||
Residential real estate | 723,360 | 771,718 | ||||||
Home equity lines of credit | 177,858 | 163,593 | ||||||
Consumer, indirect | 629,426 | 530,532 | ||||||
Consumer, direct | 108,363 | 104,652 | ||||||
Deposit account overdrafts | 722 | 756 | ||||||
Total loans, at amortized cost | $ | 4,707,150 | $ | 4,481,600 |
2022 | 2021 | ||||||||||||||||
(Dollars in thousands) | Nonaccrual (a) | Accruing Loans 90+ Days Past Due | Nonaccrual (a) | Accruing Loans 90+ Days Past Due | |||||||||||||
Construction | $ | 12 | $ | — | $ | 6 | $ | 90 | |||||||||
Commercial real estate, other | 12,121 | 167 | 17,067 | 689 | |||||||||||||
Commercial and industrial | 3,462 | 130 | 3,572 | 1,139 | |||||||||||||
Premium finance | — | 504 | — | 865 | |||||||||||||
Leases | 3,178 | 3,041 | 1,581 | — | |||||||||||||
Residential real estate | 9,496 | 917 | 9,647 | 805 | |||||||||||||
Home equity lines of credit | 820 | 58 | 1,039 | 50 | |||||||||||||
Consumer, indirect | 2,176 | — | 1,574 | — | |||||||||||||
Consumer, direct | 208 | 25 | 279 | 85 | |||||||||||||
Total loans, at amortized cost | $ | 31,473 | $ | 4,842 | $ | 34,765 | $ | 3,723 |
Loans Past Due | Current | Total | ||||||||||||||||||
(Dollars in thousands) | 30 – 59 days | 60 – 89 days | 90 + Days | Total | ||||||||||||||||
2022 | ||||||||||||||||||||
Construction | $ | 196 | $ | 161 | $ | 9 | $ | 366 | $ | 246,575 | $ | 246,941 | ||||||||
Commercial real estate, other | 2,279 | 1,051 | 10,370 | 13,700 | 1,409,818 | 1,423,518 | ||||||||||||||
Commercial and industrial | 2,522 | 289 | 3,449 | 6,260 | 886,374 | 892,634 | ||||||||||||||
Premium finance | 646 | 816 | 504 | 1,966 | 157,231 | 159,197 | ||||||||||||||
Leases | 6,074 | 1,921 | 6,218 | 14,213 | 330,918 | 345,131 | ||||||||||||||
Residential real estate | 10,113 | 2,128 | 5,519 | 17,760 | 705,600 | 723,360 | ||||||||||||||
Home equity lines of credit | 987 | 149 | 552 | 1,688 | 176,170 | 177,858 | ||||||||||||||
Consumer, indirect | 5,866 | 1,048 | 921 | 7,835 | 621,591 | 629,426 | ||||||||||||||
Consumer, direct | 703 | 70 | 108 | 881 | 107,482 | 108,363 | ||||||||||||||
Deposit account overdrafts | — | — | — | — | 722 | 722 | ||||||||||||||
Total loans, at amortized cost | $ | 29,386 | $ | 7,633 | $ | 27,650 | $ | 64,669 | $ | 4,642,481 | $ | 4,707,150 | ||||||||
2021 | ||||||||||||||||||||
Construction | $ | 658 | $ | — | $ | 90 | $ | 748 | $ | 209,484 | $ | 210,232 | ||||||||
Commercial real estate, other | 2,891 | 1,600 | 12,561 | 17,052 | 1,533,029 | 1,550,081 | ||||||||||||||
Commercial and industrial | 1,132 | 1,278 | 3,595 | 6,005 | 885,387 | 891,392 | ||||||||||||||
Premium finance | 751 | 266 | 865 | 1,882 | 134,254 | 136,136 | ||||||||||||||
Leases | 426 | 247 | 1,581 | 2,254 | 120,254 | 122,508 | ||||||||||||||
Residential real estate | 8,276 | 2,241 | 5,188 | 15,705 | 756,013 | 771,718 | ||||||||||||||
Home equity lines of credit | 1,137 | 619 | 625 | 2,381 | 161,212 | 163,593 | ||||||||||||||
Consumer, indirect | 4,220 | 895 | 615 | 5,730 | 524,802 | 530,532 | ||||||||||||||
Consumer, direct | 457 | 135 | 200 | 792 | 103,860 | 104,652 | ||||||||||||||
Deposit account overdrafts | — | — | — | — | 756 | 756 | ||||||||||||||
Total loans, at amortized cost | $ | 19,948 | $ | 7,281 | $ | 25,320 | $ | 52,549 | $ | 4,429,051 | $ | 4,481,600 |
(Dollars in thousands) | 2022 | 2021 | ||||||
Loans pledged to FHLB | $ | 783,843 | $ | 769,863 | ||||
Loans pledged to FRB | 339,005 | 294,728 |
(Dollars in thousands) | |||||
Balance, December 31, 2021 | $ | 28,079 | |||
New loans and disbursements | 19,938 | ||||
Repayments | (20,579) | ||||
Other changes | (66) | ||||
Balance, December 31, 2022 | $ | 27,372 |
Term Loans at Amortized Cost by Origination Year | |||||||||||||||||||||||||||||
(Dollars in thousands) | 2022 | 2021 | 2020 | 2019 | 2018 | Prior | Revolving Loans | Revolving Loans Converted to Term | Total Loans | ||||||||||||||||||||
Construction | |||||||||||||||||||||||||||||
Pass | $ | 82,143 | $ | 110,719 | $ | 27,893 | $ | 20,223 | $ | 656 | $ | 4,061 | $ | 44 | $ | 81 | $ | 245,739 | |||||||||||
Special mention | — | — | — | — | — | 818 | — | — | 818 | ||||||||||||||||||||
Substandard | — | 2 | — | — | — | 382 | — | — | 384 | ||||||||||||||||||||
Total | 82,143 | 110,721 | 27,893 | 20,223 | 656 | 5,261 | 44 | 81 | 246,941 | ||||||||||||||||||||
Commercial real estate, other | |||||||||||||||||||||||||||||
Pass | 165,282 | 224,727 | 227,799 | 202,877 | 110,564 | 369,578 | 27,300 | 5,217 | 1,328,127 | ||||||||||||||||||||
Special mention | — | 189 | 1,099 | 5,519 | 3,111 | 29,334 | 105 | — | 39,357 | ||||||||||||||||||||
Substandard | — | 8,327 | 2,591 | 1,366 | 1,296 | 42,172 | 216 | 190 | 55,968 | ||||||||||||||||||||
Doubtful | — | — | — | — | — | 66 | — | — | 66 | ||||||||||||||||||||
Total | 165,282 | 233,243 | 231,489 | 209,762 | 114,971 | 441,150 | 27,621 | 5,407 | 1,423,518 | ||||||||||||||||||||
Commercial and industrial | |||||||||||||||||||||||||||||
Pass | 167,937 | 142,615 | 72,573 | 71,497 | 40,229 | 91,853 | 215,116 | 3,722 | 801,820 | ||||||||||||||||||||
Special mention | 10,248 | 14,981 | 11,923 | 2,711 | 236 | 4,877 | 16,235 | — | 61,211 | ||||||||||||||||||||
Substandard | 84 | 9,801 | 3,417 | 2,410 | 1,459 | 3,620 | 8,603 | 611 | 29,394 | ||||||||||||||||||||
Doubtful | — | — | — | — | — | 209 | — | — | 209 | ||||||||||||||||||||
Total | 178,269 | 167,397 | 87,913 | 76,618 | 41,924 | 100,559 | 239,954 | 4,333 | 892,634 | ||||||||||||||||||||
Premium finance | |||||||||||||||||||||||||||||
Pass | 158,778 | 419 | — | — | — | — | — | — | 159,197 | ||||||||||||||||||||
Total | 158,778 | 419 | — | — | — | — | — | — | 159,197 | ||||||||||||||||||||
Leases | |||||||||||||||||||||||||||||
Pass | 191,148 | 90,738 | 34,627 | 15,951 | 3,269 | 1,119 | — | — | 336,852 | ||||||||||||||||||||
Special mention | 1,741 | 2,477 | 140 | 22 | 24 | — | — | — | 4,404 | ||||||||||||||||||||
Substandard | 546 | 1,840 | 571 | 464 | 454 | — | — | — | 3,875 | ||||||||||||||||||||
Total | 193,435 | 95,055 | 35,338 | 16,437 | 3,747 | 1,119 | — | — | 345,131 | ||||||||||||||||||||
Residential real estate | |||||||||||||||||||||||||||||
Pass | 78,313 | 138,860 | 58,869 | 42,840 | 28,174 | 364,635 | — | — | 711,691 | ||||||||||||||||||||
Substandard | — | — | 137 | 569 | 563 | 10,302 | — | — | 11,571 | ||||||||||||||||||||
Loss | — | — | — | — | — | 98 | — | — | 98 | ||||||||||||||||||||
Total | 78,313 | 138,860 | 59,006 | 43,409 | 28,737 | 375,035 | — | — | 723,360 | ||||||||||||||||||||
Home equity lines of credit | |||||||||||||||||||||||||||||
Pass | 41,781 | 35,768 | 19,863 | 14,820 | 13,800 | 50,291 | 334 | 2,096 | 176,657 | ||||||||||||||||||||
Substandard | — | 60 | — | 53 | 126 | 958 | — | — | 1,197 | ||||||||||||||||||||
Loss | — | — | — | — | — | 4 | — | — | 4 | ||||||||||||||||||||
Total | 41,781 | 35,828 | 19,863 | 14,873 | 13,926 | 51,253 | 334 | 2,096 | 177,858 | ||||||||||||||||||||
Consumer, indirect | |||||||||||||||||||||||||||||
Pass | 305,814 | 149,445 | 100,027 | 35,988 | 22,789 | 12,741 | — | — | 626,804 | ||||||||||||||||||||
Substandard | 384 | 811 | 659 | 266 | 304 | 193 | — | — | 2,617 | ||||||||||||||||||||
Loss | — | 5 | — | — | — | — | — | — | 5 | ||||||||||||||||||||
Total | 306,198 | 150,261 | 100,686 | 36,254 | 23,093 | 12,934 | — | — | 629,426 | ||||||||||||||||||||
Consumer, direct | |||||||||||||||||||||||||||||
Pass | 50,889 | 28,351 | 14,558 | 6,333 | 3,725 | 3,975 | — | — | 107,831 | ||||||||||||||||||||
Substandard | 97 | 63 | 138 | 46 | 21 | 150 | — | — | 515 | ||||||||||||||||||||
Loss | — | — | — | — | — | 17 | — | — | 17 | ||||||||||||||||||||
Total | 50,986 | 28,414 | 14,696 | 6,379 | 3,746 | 4,142 | — | — | 108,363 | ||||||||||||||||||||
Deposit account overdrafts | 722 | — | — | — | — | — | — | — | 722 | ||||||||||||||||||||
Total loans, at amortized cost | $ | 1,255,907 | $ | 960,198 | $ | 576,884 | $ | 423,955 | $ | 230,800 | $ | 991,453 | $ | 267,953 | $ | 11,917 | $ | 4,707,150 |
Term Loans at Amortized Cost by Origination Year | |||||||||||||||||||||||||||||
(Dollars in thousands) | 2021 | 2020 | 2019 | 2018 | 2017 | Prior | Revolving Loans | Revolving Loans Converted to Term | Total Loans | ||||||||||||||||||||
Construction | |||||||||||||||||||||||||||||
Pass | $ | 85,276 | $ | 78,026 | $ | 29,514 | $ | 3,498 | $ | 1,233 | $ | 2,982 | $ | 2,411 | $ | 6,948 | $ | 202,940 | |||||||||||
Special mention | 290 | — | — | 735 | 3,850 | 137 | — | — | 5,012 | ||||||||||||||||||||
Substandard | — | — | 947 | 77 | 153 | 1,103 | — | — | 2,280 | ||||||||||||||||||||
Total | 85,566 | 78,026 | 30,461 | 4,310 | 5,236 | 4,222 | 2,411 | 6,948 | 210,232 | ||||||||||||||||||||
Commercial real estate, other | |||||||||||||||||||||||||||||
Pass | 253,259 | 259,113 | 217,938 | 143,094 | 143,975 | 392,212 | 21,320 | 11,940 | 1,430,911 | ||||||||||||||||||||
Special mention | 157 | 2,716 | 7,875 | 3,839 | 6,292 | 31,626 | — | 49 | 52,505 | ||||||||||||||||||||
Substandard | — | 1,675 | 824 | 691 | 3,124 | 59,415 | 371 | 37 | 66,100 | ||||||||||||||||||||
Doubtful | — | — | — | — | — | 542 | — | — | 542 | ||||||||||||||||||||
Loss | — | — | — | — | — | 23 | — | — | 23 | ||||||||||||||||||||
Total | 253,416 | 263,504 | 226,637 | 147,624 | 153,391 | 483,818 | 21,691 | 12,026 | 1,550,081 | ||||||||||||||||||||
Commercial and industrial | |||||||||||||||||||||||||||||
Pass | 299,117 | 105,646 | 84,144 | 56,361 | 22,182 | 100,030 | 174,848 | 15,888 | 842,328 | ||||||||||||||||||||
Special mention | 82 | 11,745 | 2,559 | 2,179 | 132 | 5,445 | 7,563 | 9 | 29,705 | ||||||||||||||||||||
Substandard | 465 | 2,059 | 2,691 | 812 | 4,995 | 3,342 | 3,085 | 367 | 17,449 | ||||||||||||||||||||
Doubtful | — | — | — | — | — | 1,648 | 262 | 100 | 1,910 | ||||||||||||||||||||
Total | 299,664 | 119,450 | 89,394 | 59,352 | 27,309 | 110,465 | 185,758 | 16,364 | 891,392 | ||||||||||||||||||||
Premium finance | |||||||||||||||||||||||||||||
Pass | 135,896 | 240 | — | — | — | — | — | — | 136,136 | ||||||||||||||||||||
Total | 135,896 | 240 | — | — | — | — | — | — | 136,136 | ||||||||||||||||||||
Leases | |||||||||||||||||||||||||||||
Pass | 78,048 | 25,954 | 13,368 | 2,972 | 337 | — | — | — | 120,679 | ||||||||||||||||||||
Special mention | 34 | 29 | 22 | 159 | 4 | — | — | — | 248 | ||||||||||||||||||||
Substandard | 196 | 438 | 462 | 479 | 6 | — | — | — | 1,581 | ||||||||||||||||||||
Total | 78,278 | 26,421 | 13,852 | 3,610 | 347 | — | — | — | 122,508 | ||||||||||||||||||||
Residential real estate | |||||||||||||||||||||||||||||
Pass | 141,845 | 74,169 | 53,434 | 33,690 | 44,377 | 407,541 | — | — | 755,056 | ||||||||||||||||||||
Substandard | — | — | — | — | — | 16,302 | — | — | 16,302 | ||||||||||||||||||||
Loss | — | — | — | — | — | 360 | — | — | 360 | ||||||||||||||||||||
Total | 141,845 | 74,169 | 53,434 | 33,690 | 44,377 | 424,203 | — | — | 771,718 | ||||||||||||||||||||
Home equity lines of credit | |||||||||||||||||||||||||||||
Pass | 35,898 | 23,276 | 18,035 | 16,124 | 14,991 | 53,302 | 1,967 | 3,287 | 163,593 | ||||||||||||||||||||
Total | 35,898 | 23,276 | 18,035 | 16,124 | 14,991 | 53,302 | 1,967 | 3,287 | 163,593 | ||||||||||||||||||||
Consumer, indirect | |||||||||||||||||||||||||||||
Pass | 226,287 | 163,830 | 63,353 | 45,672 | 21,754 | 9,636 | — | — | 530,532 | ||||||||||||||||||||
Total | 226,287 | 163,830 | 63,353 | 45,672 | 21,754 | 9,636 | — | — | 530,532 | ||||||||||||||||||||
Consumer, direct | |||||||||||||||||||||||||||||
Pass | 47,308 | 26,792 | 13,293 | 8,411 | 3,218 | 5,630 | — | — | 104,652 | ||||||||||||||||||||
Total | 47,308 | 26,792 | 13,293 | 8,411 | 3,218 | 5,630 | — | — | 104,652 | ||||||||||||||||||||
Deposit account overdrafts | 756 | — | — | — | — | — | — | — | 756 | ||||||||||||||||||||
Total loans, at amortized cost | $ | 1,304,914 | $ | 775,708 | $ | 508,459 | $ | 318,793 | $ | 270,623 | $ | 1,091,276 | $ | 211,827 | $ | 38,625 | $ | 4,481,600 |
(Dollars in thousands) | 2022 | 2021 | |||||||||
Construction | $ | — | $ | 1,291 | |||||||
Commercial real estate, other | 8,362 | 37,220 | |||||||||
Commercial and industrial | 1,456 | 8,340 | |||||||||
Residential real estate | 536 | 2,877 | |||||||||
Home equity lines of credit | — | 391 | |||||||||
Total collateral dependent loans | $ | 10,354 | $ | 50,119 |
(Dollars in thousands) | Beginning Balance, January 1, 2022 | Initial Allowance for Acquired PCD Assets (a) | (Recovery of) Provision for Credit Losses (b) | Charge-offs | Recoveries | Ending Balance, December 31, 2022 | ||||||||||||||
Construction | $ | 2,999 | $ | — | $ | (1,733) | $ | (16) | $ | — | $ | 1,250 | ||||||||
Commercial real estate, other | 29,147 | (451) | (10,794) | (489) | 297 | 17,710 | ||||||||||||||
Commercial and industrial | 11,063 | (418) | (1,522) | (943) | 49 | 8,229 | ||||||||||||||
Premium finance | 379 | — | 76 | (124) | 13 | 344 | ||||||||||||||
Leases | 4,797 | 801 | 5,062 | (2,585) | 420 | 8,495 | ||||||||||||||
Residential real estate | 7,233 | (509) | 217 | (668) | 84 | 6,357 | ||||||||||||||
Home equity lines of credit | 2,005 | (11) | (258) | (88) | 45 | 1,693 | ||||||||||||||
Consumer, indirect | 5,326 | (41) | 4,068 | (2,233) | 328 | 7,448 | ||||||||||||||
Consumer, direct | 961 | — | 930 | (363) | 47 | 1,575 | ||||||||||||||
Deposit account overdrafts | 57 | — | 1,050 | (1,246) | 200 | 61 | ||||||||||||||
Total | $ | 63,967 | $ | (629) | $ | (2,904) | $ | (8,755) | $ | 1,483 | $ | 53,162 |
(Dollars in thousands) | Beginning Balance, January 1, 2021 | Initial Allowance for Acquired PCD Assets | (Recovery of) Provision for Credit Losses (a) | Charge-offs | Recoveries | Ending Balance, December 31, 2021 | ||||||||||||||
Construction | $ | 1,887 | $ | 2,006 | $ | (894) | $ | — | $ | — | $ | 2,999 | ||||||||
Commercial real estate, other | 17,536 | 9,636 | 2,158 | (387) | 204 | 29,147 | ||||||||||||||
Commercial and industrial | 12,763 | 4,048 | (4,717) | (1,057) | 26 | 11,063 | ||||||||||||||
Premium finance | 1,095 | — | (671) | (45) | — | 379 | ||||||||||||||
Leases | — | 493 | 5,399 | (1,434) | 339 | 4,797 | ||||||||||||||
Residential real estate | 6,044 | 1,206 | 225 | (385) | 143 | 7,233 | ||||||||||||||
Home equity lines of credit | 1,860 | 66 | 235 | (197) | 41 | 2,005 | ||||||||||||||
Consumer, indirect | 8,030 | — | (1,201) | (1,756) | 253 | 5,326 | ||||||||||||||
Consumer, direct | 1,081 | 115 | (195) | (152) | 112 | 961 | ||||||||||||||
Deposit account overdrafts | 63 | — | 392 | (575) | 177 | 57 | ||||||||||||||
Total | $ | 50,359 | $ | 17,570 | $ | 731 | $ | (5,988) | $ | 1,295 | $ | 63,967 |
(Dollars in thousands) | 2022 | 2021 | ||||||||||||
Land | $ | 18,746 | $ | 19,921 | ||||||||||
Building and premises | 101,478 | 101,234 | ||||||||||||
Furniture, fixtures and equipment | 37,913 | 36,319 | ||||||||||||
Total bank premises and equipment | 158,137 | 157,474 | ||||||||||||
Accumulated depreciation | (75,203) | (68,214) | ||||||||||||
Net book value | $ | 82,934 | $ | 89,260 |
(Dollars in thousands) | 2022 | 2021 | ||||||
Interest and fees on leases (a) | $ | 34,720 | $ | 13,572 | ||||
Other non-interest income | 4,267 | 1,293 | ||||||
$ | 38,987 | $ | 14,865 |
(Dollars in thousands) | 2022 | 2021 | ||||||
Lease payments receivable, at amortized cost | $ | 367,681 | $ | 152,202 | ||||
Estimated residual values | 35,045 | 129 | ||||||
Initial direct costs | 4,233 | 1,427 | ||||||
Deferred revenue | (61,828) | (31,250) | ||||||
Total leases, at amortized cost | 345,131 | 122,508 | ||||||
Allowance for credit losses - leases | (8,495) | (4,797) | ||||||
Net investment in sales-type leases | $ | 336,636 | $ | 117,711 |
(Dollars in thousands) | Balance | ||||
2023 | $ | 82,543 | |||
2024 | 84,642 | ||||
2025 | 92,966 | ||||
2026 | 61,351 | ||||
2027 | 37,310 | ||||
Thereafter | 8,869 | ||||
Lease payments receivable, at amortized cost | $ | 367,681 |
(Dollars in thousands) | 2022 | 2021 | ||||||
Operating lease expense | $ | 2,568 | $ | 1,632 | ||||
Short-term lease expense | 745 | 411 | ||||||
Total lease expense | $ | 3,313 | $ | 2,043 |
(Dollars in thousands) | 2022 | 2021 | ||||||
Right-of-use asset: | ||||||||
$ | 6,825 | $ | 7,911 | |||||
Lease liability: | ||||||||
$ | 7,551 | $ | 8,674 | |||||
Other information: | ||||||||
Weighted-average remaining lease term | 8.8 years | 9.5 years | ||||||
Weighted-average discount rate | 2.70 | % | 2.36 | % | ||||
Cash paid during the year for operating leases | $ | 2,560 | $ | 1,585 | ||||
Additions for right-of-use assets obtained during the year | $ | 880 | $ | 2,482 |
(Dollars in thousands) | Payments | ||||
2023 | $ | 2,245 | |||
2024 | 1,487 | ||||
2025 | 1,002 | ||||
2026 | 839 | ||||
2027 | 702 | ||||
Thereafter | 3,005 | ||||
Total undiscounted lease payments | $ | 9,280 | |||
Imputed interest | (1,729) | ||||
Total lease liability | $ | 7,551 |
(Dollars in thousands) | 2022 | 2021 | ||||||
Goodwill, beginning of year | $ | 264,193 | $ | 171,260 | ||||
Goodwill recorded from acquisitions | 28,204 | 92,933 | ||||||
Goodwill, end of year | $ | 292,397 | $ | 264,193 | ||||
(Dollars in thousands) | Core Deposits | Customer Relationships | Indefinite-Lived Trade Names | Total | |||||||||||||||||||
2022 | |||||||||||||||||||||||
Gross intangibles | $ | 26,464 | $ | 25,173 | $ | 1,274 | $ | 52,911 | |||||||||||||||
Intangibles recorded from acquisitions (a) | — | 14,067 | 1,217 | 15,284 | |||||||||||||||||||
Accumulated amortization | (20,667) | (15,412) | — | (36,079) | |||||||||||||||||||
Total acquisition-related intangibles | $ | 5,797 | $ | 23,828 | 2,491 | $ | 32,116 | ||||||||||||||||
Servicing rights | 1,816 | ||||||||||||||||||||||
Total other intangibles | $ | 33,932 | |||||||||||||||||||||
2021 | |||||||||||||||||||||||
Gross intangibles | $ | 22,233 | $ | 12,495 | $ | — | $ | 34,728 | |||||||||||||||
Intangibles recorded from acquisitions (a) | 4,233 | 13,014 | 1,274 | 18,521 | |||||||||||||||||||
Accumulated amortization | (19,048) | (9,603) | — | (28,651) | |||||||||||||||||||
Total acquisition-related intangibles | $ | 7,418 | $ | 15,906 | 1,274 | $ | 24,598 | ||||||||||||||||
Servicing rights | 2,218 | ||||||||||||||||||||||
Total other intangibles | $ | 26,816 | |||||||||||||||||||||
(Dollars in thousands) | Core Deposits | Customer Relationships | Total | |||||||||||||||||
2023 | $ | 1,257 | $ | 6,269 | $ | 7,526 | ||||||||||||||
2024 | 1,058 | 5,325 | 6,383 | |||||||||||||||||
2025 | 891 | 4,255 | 5,146 | |||||||||||||||||
2026 | 731 | 3,114 | 3,845 | |||||||||||||||||
2027 | 572 | 2,289 | 2,861 | |||||||||||||||||
Thereafter | 1,288 | 2,576 | 3,864 | |||||||||||||||||
Total | $ | 5,797 | $ | 23,828 | $ | 29,625 |
(Dollars in thousands) | 2022 | 2021 | 2020 | |||||||||||||||||
Balance, beginning of year | $ | 2,218 | $ | 2,486 | $ | 2,742 | ||||||||||||||
Amortization | (594) | (936) | (1,121) | |||||||||||||||||
Servicing rights originated | 180 | 519 | 1,026 | |||||||||||||||||
Change in valuation allowance | 12 | 149 | (161) | |||||||||||||||||
Balance, end of year | $ | 1,816 | $ | 2,218 | $ | 2,486 |
2022 | 2021 | ||||||||||||||||
Minimum | Maximum | Minimum | Maximum | ||||||||||||||
Discount rates | 12.5 | % | 15.0 | % | 8.3 | % | 10.8 | % | |||||||||
Prepayment speeds | 6.5 | % | 23.8 | % | 8.9 | % | 27.1 | % |
(Dollars in thousands) | 2022 | 2021 | ||||||
Retail CDs: | ||||||||
$100 or more | $ | 263,341 | $ | 320,574 | ||||
Less than $100 | 266,895 | 323,185 | ||||||
Total retail CDs | 530,236 | 643,759 | ||||||
Interest-bearing deposit accounts | 1,160,182 | 1,167,460 | ||||||
Savings accounts | 1,068,547 | 1,036,738 | ||||||
Money market deposit accounts | 617,029 | 651,169 | ||||||
Governmental deposit accounts | 625,965 | 617,259 | ||||||
Brokered deposit accounts | 125,580 | 104,745 | ||||||
Total interest-bearing deposits | 4,127,539 | 4,221,130 | ||||||
Non-interest-bearing deposits | 1,589,402 | 1,641,422 | ||||||
Total deposits | $ | 5,716,941 | $ | 5,862,552 |
(Dollars in thousands) | 2022 | 2021 | ||||||
3 months or less | $ | 19,282 | $ | 23,779 | ||||
Over 3 to 6 months | 14,871 | 26,964 | ||||||
Over 6 to 12 months | 14,383 | 34,434 | ||||||
Over 12 months | 52,216 | 36,115 | ||||||
Total | $ | 100,752 | $ | 121,292 |
(Dollars in thousands) | Retail | Brokered | Total | ||||||||
2023 | $ | 316,073 | $ | 125,580 | $ | 441,653 | |||||
2024 | 132,130 | — | 132,130 | ||||||||
2025 | 32,838 | — | 32,838 | ||||||||
2026 | 22,127 | — | 22,127 | ||||||||
2027 | 26,978 | — | 26,978 | ||||||||
Thereafter | 90 | — | 90 | ||||||||
Total CDs | $ | 530,236 | $ | 125,580 | $ | 655,816 |
(Dollars in thousands) | Retail Repurchase Agreements | FHLB Advances | Other | Total | ||||||||||
2022 | ||||||||||||||
Ending balance | $ | 100,138 | $ | 400,000 | $ | — | $ | 500,138 | ||||||
Average balance | 113,434 | 83,356 | — | 196,790 | ||||||||||
Highest month-end balance | 286,442 | 400,000 | — | 500,138 | ||||||||||
Interest expense | $ | 274 | $ | 2,387 | $ | — | $ | 2,661 | ||||||
Weighted-average interest rate: | ||||||||||||||
End of year | 0.40 | % | 4.36 | % | — | % | 3.57 | % | ||||||
During the year | 0.24 | % | 2.86 | % | — | % | 1.35 | % | ||||||
2021 | ||||||||||||||
Ending balance | $ | 111,482 | $ | 55,000 | $ | — | $ | 166,482 | ||||||
Average balance | 70,674 | 30,289 | — | 100,963 | ||||||||||
Highest month-end balance | 119,693 | 65,017 | — | 184,693 | ||||||||||
Interest expense | $ | 66 | $ | 475 | $ | — | $ | 541 | ||||||
Weighted-average interest rate: | ||||||||||||||
End of year | 0.09 | % | 0.74 | % | — | % | 0.31 | % | ||||||
During the year | 0.09 | % | 1.57 | % | — | % | 0.54 | % | ||||||
2020 | ||||||||||||||
Ending balance | $ | 53,261 | $ | 20,000 | $ | — | $ | 73,261 | ||||||
Average balance | 44,902 | 129,928 | 1,803 | 176,633 | ||||||||||
Highest month-end balance | 53,261 | 235,989 | 64,000 | 279,773 | ||||||||||
Interest expense | $ | 77 | $ | 2,489 | $ | 5 | $ | 2,571 | ||||||
Weighted-average interest rate: | ||||||||||||||
End of year | 0.06 | % | 1.78 | % | — | % | 0.53 | % | ||||||
During the year | 0.17 | % | 1.92 | % | 0.25 | % | 1.46 | % |
2022 | 2021 | ||||||||||||||||
(Dollars in thousands) | Balance | Weighted- Average Rate | Balance | Weighted- Average Rate | |||||||||||||
FHLB putable, non-amortizing, fixed rate advances | $ | 30,000 | 2.51 | % | $ | 80,000 | 1.42 | % | |||||||||
FHLB amortizing, fixed rate advances | 4,158 | 1.79 | % | 5,825 | 1.77 | % | |||||||||||
Vantage non-recourse borrowings | 53,147 | 4.75 | % | — | — | % | |||||||||||
Junior subordinated debt securities | 13,788 | 8.66 | % | 13,650 | 3.37 | % | |||||||||||
Long-term borrowings (a) | $ | 101,093 | $ | 99,475 |
(Dollars in thousands) | Balance | ||||
2023 | $ | 10,343 | |||
2024 | 18,042 | ||||
2025 | 11,820 | ||||
2026 | 26,052 | ||||
2027 | 15,946 | ||||
Thereafter | 18,890 | ||||
Total long-term borrowings | $ | 101,093 |
Common Stock | Treasury Stock | |||||||
Shares at December 31, 2019 | 21,156,143 | 504,182 | ||||||
Changes related to stock-based compensation awards: | ||||||||
Grant of restricted common shares | — | (128,402) | ||||||
Release of restricted common shares | — | 27,391 | ||||||
Cancellation of restricted common shares | — | 33,689 | ||||||
Grant of unrestricted common shares | — | (23,482) | ||||||
Changes related to deferred compensation plan for Boards of Directors: | ||||||||
Purchase of treasury stock | — | 12,005 | ||||||
Disbursed out of treasury stock | — | (2,362) | ||||||
Common shares purchased under repurchase program | — | 1,299,577 | ||||||
Common shares issued under dividend reinvestment plan | 37,259 | — | ||||||
Common shares issued under compensation plan for Boards of Directors | — | (11,553) | ||||||
Common shares issued under performance unit awards | — | (6,127) | ||||||
Common shares issued under employee stock purchase plan | — | (18,872) | ||||||
Shares at December 31, 2020 | 21,193,402 | 1,686,046 | ||||||
Changes related to stock-based compensation awards: | ||||||||
Grant of restricted common shares | — | (109,385) | ||||||
Release of restricted common shares | — | 34,732 | ||||||
Cancellation of restricted common shares | — | 8,129 | ||||||
Grant of unrestricted common shares | — | (21,587) | ||||||
Changes related to deferred compensation plan for Boards of Directors: | ||||||||
Purchase of treasury stock | — | 7,089 | ||||||
Disbursed out of treasury stock | — | (2,983) | ||||||
Common shares issued under dividend reinvestment plan | 31,314 | — | ||||||
Common shares issued under compensation plan for Boards of Directors | — | (7,589) | ||||||
Common shares issued under employee stock purchase plan | — | (17,093) | ||||||
Issuance of common shares related to the Premier Merger | 8,589,685 | — | ||||||
Shares at December 31, 2021 | 29,814,401 | 1,577,359 | ||||||
Changes related to stock-based compensation awards: | ||||||||
Grant of restricted common shares | — | (216,669) | ||||||
Release of restricted common shares | — | 39,445 | ||||||
Cancellation of restricted common shares | — | 5,452 | ||||||
Grant of unrestricted common shares | (1,500) | |||||||
Changes related to deferred compensation plan for Boards of Directors: | ||||||||
Purchase of treasury stock | — | 15,688 | ||||||
Disbursed out of treasury stock | — | (3,039) | ||||||
Common shares repurchased under repurchase program | — | 263,183 | ||||||
Common shares issued under dividend reinvestment plan | 43,519 | — | ||||||
Common shares issued under compensation plan for Boards of Directors | — | (17,626) | ||||||
Common shares issued under employee stock purchase plan | — | (18,832) | ||||||
Shares at December 31, 2022 | 29,857,920 | 1,643,461 |
2022 | 2021 | |||||||
First Quarter | $ | 0.36 | $ | 0.35 | ||||
Second Quarter | 0.38 | 0.36 | ||||||
Third Quarter | 0.38 | 0.36 | ||||||
Fourth Quarter | 0.38 | 0.36 | ||||||
Total dividends declared | $ | 1.50 | $ | 1.43 |
(Dollars in thousands) | Unrealized Gain (Loss) on Securities | Unrecognized Net Pension and Postretirement Costs | Unrealized (Loss) Gain on Cash Flow Hedge | Accumulated Other Comprehensive (Loss) Income | ||||||||||
Balance, December 31, 2019 | $ | 5,300 | $ | (3,958) | $ | (2,767) | $ | (1,425) | ||||||
Reclassification adjustments to net income: | ||||||||||||||
Realized loss on sale of securities, net of tax | 291 | — | — | 291 | ||||||||||
Realized loss due to settlement and curtailment, net of tax | — | 833 | — | 833 | ||||||||||
Other comprehensive income (loss), net of reclassifications and tax | 9,001 | (747) | (6,617) | 1,637 | ||||||||||
Balance, December 31, 2020 | $ | 14,592 | $ | (3,872) | $ | (9,384) | $ | 1,336 | ||||||
Reclassification adjustments to net income: | ||||||||||||||
Realized loss on sale of securities, net of tax | 670 | — | — | 670 | ||||||||||
Realized loss due to settlement and curtailment, net of tax | — | 111 | — | 111 | ||||||||||
Other comprehensive (loss) income, net of reclassifications and tax | (21,208) | 1,880 | 5,592 | (13,736) | ||||||||||
Balance, December 31, 2021 | $ | (5,946) | $ | (1,881) | $ | (3,792) | $ | (11,619) | ||||||
Reclassification adjustments to net income: | ||||||||||||||
Realized loss on sale of securities, net of tax | 47 | — | — | 47 | ||||||||||
Realized loss due to settlement and curtailment, net of tax | — | 142 | — | 142 | ||||||||||
Other comprehensive (loss) income, net of reclassifications and tax | (123,997) | 106 | 8,185 | (115,706) | ||||||||||
Balance, December 31, 2022 | $ | (129,896) | $ | (1,633) | $ | 4,393 | $ | (127,136) |
Pension Benefits | Post-retirement Benefits | ||||||||||||||||
(Dollars in thousands) | 2022 | 2021 | 2022 | 2021 | |||||||||||||
Change in benefit obligation: | |||||||||||||||||
Obligation at January 1 | $ | 10,463 | $ | 12,310 | $ | 62 | $ | 71 | |||||||||
Interest cost | 280 | 259 | 1 | 2 | |||||||||||||
Plan participants’ contributions | — | — | 47 | 51 | |||||||||||||
Actuarial (gain) loss | (2,359) | (1,367) | (2) | 1 | |||||||||||||
Benefit payments | (257) | (220) | (58) | (63) | |||||||||||||
Settlements | (546) | (519) | — | — | |||||||||||||
Accumulated benefit obligation at December 31 | $ | 7,581 | $ | 10,463 | $ | 50 | $ | 62 | |||||||||
Change in plan assets: | |||||||||||||||||
Fair value of plan assets at January 1 | $ | 11,718 | $ | 10,852 | $ | — | $ | — | |||||||||
Actual (loss) return on plan assets | (1,746) | 1,605 | — | — | |||||||||||||
Employer contributions | 2 | — | 11 | 12 | |||||||||||||
Plan participants’ contributions | — | — | 47 | 51 | |||||||||||||
Benefit payments | (257) | (220) | (58) | (63) | |||||||||||||
Settlements | (546) | (519) | — | — | |||||||||||||
Fair value of plan assets at December 31 | $ | 9,171 | $ | 11,718 | $ | — | $ | — | |||||||||
Funded status at December 31 | $ | 1,590 | $ | 1,255 | $ | (50) | $ | (62) | |||||||||
Amounts recognized in Consolidated Balance Sheets: | |||||||||||||||||
Prepaid benefit costs | $ | 1,590 | $ | 1,255 | $ | — | $ | — | |||||||||
Accrued benefit liability | $ | — | $ | — | $ | (50) | $ | (62) | |||||||||
Net amount recognized | $ | 1,590 | $ | 1,255 | $ | (50) | $ | (62) | |||||||||
Amounts recognized in Accumulated Other Comprehensive Loss: | |||||||||||||||||
Unrecognized prior service cost | $ | — | $ | — | $ | — | $ | — | |||||||||
Unrecognized net loss (gain) | 1,681 | 1,861 | (48) | (37) | |||||||||||||
Total | $ | 1,681 | $ | 1,861 | $ | (48) | $ | (37) | |||||||||
Weighted-average assumptions at year-end: | |||||||||||||||||
Discount rate | 4.98 | % | 2.71 | % | 4.98 | % | 2.71 | % |
Pension Benefits | Post-retirement Benefits | ||||||||||||||||||||||
(Dollars in thousands) | 2022 | 2021 | 2020 | 2022 | 2021 | 2020 | |||||||||||||||||
Interest cost | $ | 280 | $ | 259 | $ | 326 | $ | 1 | $ | 2 | $ | 2 | |||||||||||
Expected return on plan assets | (670) | (658) | (747) | — | — | — | |||||||||||||||||
Amortization of prior service credit | — | — | — | — | — | — | |||||||||||||||||
Amortization of net loss (gain) | 67 | 107 | 132 | (4) | (4) | (5) | |||||||||||||||||
Settlement of benefit obligation | 185 | 143 | 1,054 | — | — | — | |||||||||||||||||
Net periodic (benefit) cost | $ | (138) | $ | (149) | $ | 765 | $ | (3) | $ | (2) | $ | (3) | |||||||||||
Weighted-average assumptions: | |||||||||||||||||||||||
Discount rate | 3.14 | % | 2.44 | % | 2.53 | % | 2.71 | % | 2.38 | % | 3.12 | % | |||||||||||
Expected return on plan assets | 7.00 | % | 7.00 | % | 7.50 | % | N/A | N/A | N/A | ||||||||||||||
Rate of compensation increase | N/A | N/A | N/A | N/A | N/A | N/A |
(Dollars in thousands) | Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||||||||
2022 | |||||||||||
Equity securities: | |||||||||||
Mutual funds – equity | $ | 6,357 | $ | 6,357 | |||||||
Debt securities: | |||||||||||
Mutual funds – taxable income | 2,439 | 2,439 | |||||||||
Total fair value of pension assets | $ | 8,796 | $ | 8,796 | |||||||
2021 | |||||||||||
Equity securities: | |||||||||||
Mutual funds – equity | $ | 8,516 | $ | 8,516 | |||||||
Debt securities: | |||||||||||
Mutual funds – taxable income | 2,912 | 2,912 | |||||||||
Total fair value of pension assets | $ | 11,428 | $ | 11,428 |
(Dollars in thousands) | Pension Benefits | Post-retirement Benefits | |||||||||
2023 | $ | 1,082 | $ | 10 | |||||||
2024 | 843 | 9 | |||||||||
2025 | 656 | 7 | |||||||||
2026 | 792 | 6 | |||||||||
2027 | 659 | 6 | |||||||||
2028 to 2032 | 2,780 | 16 | |||||||||
Total | $ | 6,812 | $ | 54 |
(Dollars in thousands) | 2022 | 2021 | 2020 | ||||||||||||||||||||||||||
Amount | Rate | Amount | Rate | Amount | Rate | ||||||||||||||||||||||||
Income tax computed at statutory federal corporate income tax rate | $ | 27,015 | 21.0 | % | $ | 11,954 | 21.0 | % | $ | 8,956 | 21.0 | % | |||||||||||||||||
Differences in rate resulting from: | |||||||||||||||||||||||||||||
State taxes, net of federal benefit | 2,277 | 1.8 | % | 119 | 0.2 | % | 62 | 0.1 | % | ||||||||||||||||||||
Investment securities impairment | 431 | 0.3 | % | — | — | % | — | — | % | ||||||||||||||||||||
Nondeductible acquisition costs | 42 | — | % | 269 | 0.5 | % | — | — | % | ||||||||||||||||||||
Common share awards | 12 | — | % | 74 | 0.1 | % | (5) | — | % | ||||||||||||||||||||
Bank owned life insurance | (551) | (0.4) | % | (371) | (0.6) | % | (415) | (1.0) | % | ||||||||||||||||||||
Investments in tax credit funds | (629) | (0.5) | % | (381) | (0.7) | % | (415) | (1.0) | % | ||||||||||||||||||||
Captive insurance benefit | (421) | (0.3) | % | (435) | (0.8) | % | (412) | (1.0) | % | ||||||||||||||||||||
Tax-exempt interest income | (921) | (0.7) | % | (835) | (1.5) | % | (668) | (1.6) | % | ||||||||||||||||||||
Fixed asset depreciation | — | — | % | (1,142) | (2.0) | % | — | — | % | ||||||||||||||||||||
Other, net | 94 | 0.1 | % | 163 | 0.3 | % | 776 | 2.0 | % | ||||||||||||||||||||
Income tax expense | $ | 27,349 | 21.3 | % | $ | 9,415 | 16.5 | % | $ | 7,879 | 18.5 | % |
(Dollars in thousands) | 2022 | 2021 | 2020 | |||||||||||||||||
Current income tax expense | $ | 8,783 | $ | 6,541 | $ | 15,980 | ||||||||||||||
Deferred income tax expense (benefit) | 18,566 | 2,874 | (8,101) | |||||||||||||||||
Income tax expense | $ | 27,349 | $ | 9,415 | $ | 7,879 |
(Dollars in thousands) | 2022 | 2021 | ||||||||||||
Deferred tax assets: | ||||||||||||||
Available-for-sale securities | $ | 39,425 | $ | 1,905 | ||||||||||
Allowance for credit losses | 12,827 | 13,575 | ||||||||||||
Nonaccrual loan interest income | 4,366 | 3,898 | ||||||||||||
Accrued employee benefits | 3,391 | 2,161 | ||||||||||||
Lease obligation | 1,757 | 1,960 | ||||||||||||
Net operating loss carryforward | 158 | 223 | ||||||||||||
Tax credit investments | — | 1,096 | ||||||||||||
Derivative instruments | — | 1,088 | ||||||||||||
Other | 899 | 561 | ||||||||||||
Gross deferred tax assets | $ | 62,823 | $ | 26,467 | ||||||||||
Valuation allowance | $ | 158 | $ | 158 | ||||||||||
Total deferred tax assets | $ | 62,665 | $ | 26,309 | ||||||||||
Deferred tax liabilities: | ||||||||||||||
Equipment leases | $ | 16,316 | $ | — | ||||||||||
Deferred loan income | 5,512 | 5,249 | ||||||||||||
Purchase accounting adjustments | 4,431 | 3,166 | ||||||||||||
Bank premises and equipment | 3,206 | 3,838 | ||||||||||||
Lease right-of-use assets | 1,588 | 1,788 | ||||||||||||
Derivative instruments | 1,302 | — | ||||||||||||
Other | 2,259 | 662 | ||||||||||||
Total deferred tax liabilities | $ | 34,614 | $ | 14,703 | ||||||||||
Net deferred tax asset | $ | 28,051 | $ | 11,606 |
(Dollars in thousands) | 2022 | 2021 | |||||||||
Uncertain tax positions, beginning of year | $ | 106 | $ | 149 | |||||||
Gross increase based on tax positions related to current year | 39 | — | |||||||||
Gross decrease due to the statute of limitations | (56) | (43) | |||||||||
Uncertain tax positions, end of year | $ | 89 | $ | 106 |
(Dollars in thousands, except per common share data) | 2022 | 2021 | 2020 | ||||||||
Net income available to common shareholders | $ | 101,292 | $ | 47,555 | $ | 34,767 | |||||
Less: Dividends paid on unvested common shares | (354) | (295) | (367) | ||||||||
Add: Undistributed loss allocated to unvested common shares | (96) | (26) | (5) | ||||||||
Net earnings allocated to common shareholders | $ | 100,842 | $ | 47,234 | $ | 34,395 | |||||
Weighted-average common shares outstanding | 27,908,022 | 21,816,511 | 19,721,772 | ||||||||
Effect of potentially dilutive common shares | 91,580 | 143,372 | 122,034 | ||||||||
Total weighted-average diluted common shares outstanding | 27,999,602 | 21,959,883 | 19,843,806 | ||||||||
Earnings per common share: | |||||||||||
Basic | $ | 3.61 | $ | 2.17 | $ | 1.74 | |||||
Diluted | $ | 3.60 | $ | 2.15 | $ | 1.73 | |||||
Anti-dilutive common shares excluded from calculation: | |||||||||||
Restricted shares | — | 275 | 64,145 |
(Dollars in thousands) | 2022 | 2021 | ||||||
Notional amount | $ | 125,000 | $ | 125,000 | ||||
Weighted average pay rates | 2.26 | % | 2.26 | % | ||||
Weighted average receive rates | 4.44 | % | 1.10 | % | ||||
Weighted average maturity | 2.6 years | 3.6 years | ||||||
Pre-tax changes in fair value included in AOCI | 5,727 | (4,879) |
(Dollars in thousands) | 2022 | 2021 | ||||||
Amount of income recognized in AOCI, pre-tax | $ | 10,606 | $ | 6,999 | ||||
2022 | 2021 | |||||||||||||
(Dollars in thousands) | Notional Amount | Fair Value | Notional Amount | Fair Value | ||||||||||
Included in "Other assets": | ||||||||||||||
Interest rate swaps related to debt | $ | 125,000 | $ | 5,594 | $ | — | $ | — | ||||||
Total included in "Other assets" | $ | 125,000 | $ | 5,594 | $ | — | $ | — | ||||||
Included in "Accrued expenses and other liabilities": | ||||||||||||||
Interest rate swaps related to debt | $ | — | $ | — | $ | 125,000 | $ | 5,020 | ||||||
Total included in "Accrued expenses and other liabilities" | $ | — | $ | — | $ | 125,000 | $ | 5,020 |
2022 | 2021 | |||||||||||||
(Dollars in thousands) | Notional Amount | Fair Value | Notional Amount | Fair Value | ||||||||||
Included in "Other assets": | ||||||||||||||
Interest rate swaps related to commercial loans | $ | 390,126 | $ | 28,529 | $ | 419,733 | $ | 12,163 | ||||||
Total included in "Other assets" | 390,126 | 28,529 | 419,733 | 12,163 | ||||||||||
Included in "Accrued expenses and other liabilities": | ||||||||||||||
Interest rate swaps related to commercial loans | $ | 390,126 | $ | 28,529 | $ | 419,733 | $ | 12,163 | ||||||
Total included in "Accrued expenses and other liabilities" | 390,126 | 28,529 | 419,733 | 12,163 |
(Dollars in thousands) | 2022 | 2021 | ||||||
Home equity lines of credit | $ | 197,995 | $ | 177,262 | ||||
Unadvanced construction loans | 270,229 | 227,135 | ||||||
Other loan commitments | 730,015 | 577,170 | ||||||
Loan commitments | 1,198,239 | 981,567 | ||||||
Standby letters of credit | $ | 15,451 | $ | 12,805 |
2022 | 2021 | |||||||||||||||||||
(Dollars in thousands) | Amount | Ratio | Amount | Ratio | ||||||||||||||||
PEOPLES | ||||||||||||||||||||
Common Equity Tier 1 (a) | ||||||||||||||||||||
Actual | $ | 604,566 | 11.92 | % | $ | 577,565 | 12.52 | % | ||||||||||||
For capital adequacy | 228,206 | 4.50 | % | 207,642 | 4.50 | % | ||||||||||||||
To be well capitalized | 329,631 | 6.50 | % | 299,927 | 6.50 | % | ||||||||||||||
Tier 1 (b) | ||||||||||||||||||||
Actual | $ | 618,354 | 12.19 | % | $ | 591,215 | 12.81 | % | ||||||||||||
For capital adequacy | 304,274 | 6.00 | % | 276,856 | 6.00 | % | ||||||||||||||
To be well capitalized | 405,699 | 8.00 | % | 369,141 | 8.00 | % | ||||||||||||||
Total Capital (c) | ||||||||||||||||||||
Actual | $ | 662,421 | 13.06 | % | $ | 648,948 | 14.06 | % | ||||||||||||
For capital adequacy | 405,699 | 8.00 | % | 369,141 | 8.00 | % | ||||||||||||||
To be well capitalized | 507,124 | 10.00 | % | 461,426 | 10.00 | % | ||||||||||||||
Tier 1 Leverage (d) | ||||||||||||||||||||
Actual | $ | 618,354 | 8.92 | % | $ | 591,215 | 8.67 | % | ||||||||||||
For capital adequacy | 277,302 | 4.00 | % | 272,916 | 4.00 | % | ||||||||||||||
To be well capitalized | 346,628 | 5.00 | % | 341,145 | 5.00 | % | ||||||||||||||
Capital Conservation Buffer | $ | 256,722 | 5.06 | % | $ | 279,807 | 6.06 | % | ||||||||||||
Fully phased in | 126,781 | 2.50 | % | 115,356 | 2.50 | % | ||||||||||||||
Net Risk-Weighted Assets | $ | 5,071,240 | $ | 4,614,259 | ||||||||||||||||
Time-Based Vesting | Performance-Based Vesting | ||||||||||||||||
Number of Common Shares | Weighted-Average Grant Date Fair Value | Number of Common Shares | Weighted-Average Grant Date Fair Value | ||||||||||||||
Outstanding at January 1 | 88,922 | 25.44 | 247,346 | 32.19 | |||||||||||||
Awarded | 62,024 | 30.88 | 154,645 | 32.21 | |||||||||||||
Released | (12,424) | 32.37 | (100,664) | 32.20 | |||||||||||||
Forfeited | — | — | (5,452) | 32.14 | |||||||||||||
Outstanding at December 31 | 138,522 | 27.25 | 295,875 | 32.20 |
(Dollars in thousands) | 2022 | 2021 | 2020 | ||||||||
Employee stock-based compensation expense: | |||||||||||
Restricted common share grant expense | $ | 3,707 | $ | 3,436 | $ | 3,556 | |||||
Employee stock purchase plan expense | 112 | 79 | 63 | ||||||||
Performance stock unit benefit | — | — | (12) | ||||||||
Total employee stock-based compensation expense | 3,819 | 3,515 | 3,607 | ||||||||
Non-employee director stock-based compensation expense | 506 | 375 | 340 | ||||||||
Total stock-based compensation expense | 4,325 | 3,890 | 3,947 | ||||||||
Recognized tax benefit | (1,007) | (867) | (818) | ||||||||
Net expense recognized | $ | 3,318 | $ | 3,023 | $ | 3,129 |
(Dollars in thousands) | 2022 | 2021 | ||||||
Insurance income: | ||||||||
Commission and fees from sale of insurance policies (a) | $ | 13,960 | $ | 12,819 | ||||
Fees related to third-party administration services (a) | 343 | 389 | ||||||
Performance-based commissions (b) | 1,424 | 2,044 | ||||||
Trust and investment income: | ||||||||
Fiduciary income (a) | 10,048 | 10,490 | ||||||
Brokerage income (a) | 6,343 | 5,966 | ||||||
Electronic banking income: | ||||||||
Interchange income (a) | 16,674 | 14,254 | ||||||
Promotional and usage income (a) | 4,420 | 3,756 | ||||||
Deposit account service charges: | ||||||||
Ongoing maintenance fees for deposit accounts (a) | 5,323 | 3,807 | ||||||
Transactional-based fees (b) | 9,260 | 6,336 | ||||||
Commercial loan swap fees (b) | 662 | 543 | ||||||
Other non-interest income transactional-based fees (b) | 1,499 | 968 | ||||||
Total | $ | 69,956 | $ | 61,372 | ||||
Timing of revenue recognition: | ||||||||
Services transferred over time | $ | 57,111 | $ | 51,481 | ||||
Services transferred at a point in time | 12,845 | 9,891 | ||||||
Total | $ | 69,956 | $ | 61,372 |
(Dollars in thousands) | Contract Assets | Contract Liabilities | ||||||
Balance, January 1, 2022 | $ | 743 | $ | 4,811 | ||||
Additional income receivable | 551 | — | ||||||
Additional deferred income | — | 939 | ||||||
Recognition of income previously deferred | — | (116) | ||||||
Balance, December 31, 2022 | $ | 1,294 | $ | 5,634 |
(Dollars in thousands) | Fair Value | ||||
Total purchase price | $ | 82,893 | |||
Net assets at fair value | |||||
Assets | |||||
Cash and due from banks | $ | 1,444 | |||
Leases | 155,726 | ||||
Allowance for credit losses (on PCD leases) | (801) | ||||
Net leases | 154,925 | ||||
Bank premises and equipment | 116 | ||||
Other intangible assets | 13,207 | ||||
Other assets | 1,506 | ||||
Total assets | $ | 171,198 | |||
Liabilities | |||||
Borrowings | $ | 106,919 | |||
Accrued expenses and other liabilities | 8,550 | ||||
Total liabilities | $ | 115,469 | |||
Net assets | $ | 55,729 | |||
Goodwill | $ | 27,164 |
(Dollars in thousands) | Par Value | Allowance for Credit Losses | Non-Credit Premium | Fair Value | ||||||||||
PCD leases | ||||||||||||||
Leases | $ | 3,412 | $ | (801) | $ | 1,120 | $ | 3,731 | ||||||
Fair value | $ | 3,412 | $ | (801) | $ | 1,120 | $ | 3,731 | ||||||
(Dollars in thousands) | Unpaid Principal Balance | Fair Value | ||||||
Premier common shares | 14,811,200 | |||||||
Number of common shares of Peoples issued for each common share of Premier | 0.58 | |||||||
Price per Peoples common share, based at closing date | $ | 30.49 | ||||||
Common share consideration | 261,899 | |||||||
Cash paid in lieu of fractional common shares | 25 | |||||||
Total consideration | $ | 261,924 | ||||||
Net assets at fair value | ||||||||
Assets | ||||||||
Cash and due from banks | $ | 248,360 | ||||||
Interest-bearing deposits in other banks | 1,025 | |||||||
Total cash and cash equivalents | 249,385 | |||||||
Available-for-sale investment securities | 551,953 | |||||||
Other investment securities | 4,159 | |||||||
Total investment securities | 556,112 | |||||||
Loans: | ||||||||
Construction | 97,262 | 96,025 | ||||||
Commercial real estate, other | 544,950 | 534,869 | ||||||
Commercial and industrial | 132,293 | 131,979 | ||||||
Residential real estate | 332,269 | 331,544 | ||||||
Home equity lines of credit | 46,969 | 45,910 | ||||||
Consumer | 20,961 | 21,513 | ||||||
Total loans | 1,174,704 | 1,161,840 | ||||||
Allowance for credit losses (on PCD Loans) | (15,513) | |||||||
Net loans | 1,146,327 | |||||||
Bank premises and equipment | 30,098 | |||||||
Other intangible assets | 4,233 | |||||||
OREO | 11,081 |
(Dollars in thousands) | Unpaid Principal Balance | Fair Value | ||||||
Other assets | 26,982 | |||||||
Total assets | $ | 2,024,218 | ||||||
Liabilities | ||||||||
Deposits: | ||||||||
Non-interest-bearing | $ | 733,157 | ||||||
Interest-bearing | 1,018,387 | |||||||
Total deposits | 1,751,544 | |||||||
Short-term borrowings | 63,807 | |||||||
Long-term borrowings | 6,070 | |||||||
Accrued expenses and other liabilities | 7,813 | |||||||
Total liabilities | 1,829,234 | |||||||
Net assets | 194,984 | |||||||
Goodwill | $ | 66,940 |
(Dollars in thousands) | Par Value | Allowance for Credit Losses | Non-Credit (Discount) Premium | Fair Value | ||||||||||
PCD loans | ||||||||||||||
Construction | $ | 20,143 | $ | (2,005) | $ | (214) | $ | 17,924 | ||||||
Commercial real estate, other | 97,193 | (9,053) | (2,123) | 86,017 | ||||||||||
Commercial and industrial | 9,948 | (3,630) | 113 | 6,431 | ||||||||||
Residential real estate | 18,349 | (696) | (251) | 17,402 | ||||||||||
Home equity lines of credit | 1,291 | (55) | (72) | 1,164 | ||||||||||
Consumer | 929 | (74) | 37 | 892 | ||||||||||
Fair value | $ | 147,853 | $ | (15,513) | $ | (2,510) | $ | 129,830 | ||||||
(Dollars in thousands) | |||||
Total purchase price (a) | $ | 118,846 | |||
Net assets at fair value | |||||
Assets | |||||
Cash and due from banks | $ | 216 | |||
Net leases | 82,833 | ||||
Bank premises and equipment, net of accumulated depreciation | 470 | ||||
Other intangible assets | 14,009 | ||||
Other assets | 1,225 | ||||
Total assets | $ | 98,753 | |||
Liabilities | |||||
Accrued expenses and other liabilities | $ | 4,627 | |||
Total liabilities | $ | 4,627 | |||
Net assets | $ | 94,126 | |||
Goodwill | $ | 24,720 |
(Dollars in thousands) | NSL | ||||
PCD leases | |||||
Par value | $ | 5,248 | |||
Allowance for credit losses | (493) | ||||
Non-credit premium | 85 | ||||
Fair value | $ | 4,840 | |||
Condensed Balance Sheets | December 31, | |||||||
(Dollars in thousands) | 2022 | 2021 | ||||||
Assets: | ||||||||
Cash and due from other banks | $ | 50 | $ | 50 | ||||
Interest-bearing deposits in subsidiary bank | 14,961 | 15,202 | ||||||
Due from subsidiary bank | 1,353 | 547 | ||||||
Other investment securities | 234 | 220 | ||||||
Investments in subsidiaries: | ||||||||
Bank | 774,294 | 834,037 | ||||||
Non-bank | 11,944 | 12,278 | ||||||
Other assets | 2,877 | 5,248 | ||||||
Total assets | $ | 805,713 | $ | 867,582 | ||||
Liabilities: | ||||||||
Accrued expenses and other liabilities | $ | 3,336 | $ | 5,660 | ||||
Dividends payable | 781 | 767 | ||||||
Mandatorily redeemable capital securities of subsidiary trusts | 16,268 | 16,130 | ||||||
Total liabilities | 20,385 | 22,557 | ||||||
Total stockholders' equity | 785,328 | 845,025 | ||||||
Total liabilities and stockholders' equity | $ | 805,713 | $ | 867,582 |
Condensed Statements of Income | Year Ended December 31, | ||||||||||
(Dollars in thousands) | 2022 | 2021 | 2020 | ||||||||
Income: | |||||||||||
Dividends from subsidiary bank | $ | 52,000 | $ | 29,000 | $ | 49,000 | |||||
Dividends from non-bank subsidiary | 1,860 | 1,750 | — | ||||||||
Interest and other income | 39 | 73 | 16 | ||||||||
Total income | 53,899 | 30,823 | 49,016 | ||||||||
Expense: | |||||||||||
Trust preferred securities expense | 744 | 367 | 373 | ||||||||
Intercompany management fees | 1,379 | 1,303 | 1,369 | ||||||||
Other expense | 6,539 | 5,675 | 5,376 | ||||||||
Total expense | 8,662 | 7,345 | 7,118 | ||||||||
Income before federal income taxes and equity in undistributed earnings of subsidiaries | 45,237 | 23,478 | 41,898 | ||||||||
Applicable income tax expense | (1,979) | (1,295) | (1,128) | ||||||||
Equity in (excess dividends from) undistributed earnings of subsidiaries | 54,076 | 22,782 | (8,259) | ||||||||
Net income | $ | 101,292 | $ | 47,555 | $ | 34,767 |
Statements of Cash Flows | Year Ended December 31, | ||||||||||
(Dollars in thousands) | 2022 | 2021 | 2020 | ||||||||
Operating activities | |||||||||||
Net income | $ | 101,292 | $ | 47,555 | $ | 34,767 | |||||
Adjustments to reconcile net income to cash provided by operations: | |||||||||||
Depreciation, amortization and accretion, net | 138 | 6,224 | 161 | ||||||||
(Equity in) excess dividends from undistributed earnings of subsidiaries | (54,076) | (22,782) | 8,259 | ||||||||
Gain on investment securities | — | — | (8) | ||||||||
Other, net | 5,008 | 3,930 | 8,492 | ||||||||
Net cash provided by operating activities | 52,362 | 34,927 | 51,671 | ||||||||
Investing activities | |||||||||||
Net proceeds from sales and maturities of investment securities | — | 10 | 10 | ||||||||
Investment in subsidiaries | (13,084) | (16,282) | (35,238) | ||||||||
Decrease in receivable from subsidiary | 12,279 | 16,344 | 34,719 | ||||||||
Business combinations, net of cash received | (1,239) | (710) | — | ||||||||
Other, net | (262) | (1,998) | (76) | ||||||||
Net cash used in investing activities | (2,306) | (2,636) | (585) | ||||||||
Financing activities | |||||||||||
Purchase of treasury stock | (9,152) | (1,306) | (30,409) | ||||||||
Proceeds from issuance of common shares | 1,226 | 906 | 594 | ||||||||
Cash dividends paid | (42,371) | (31,002) | (27,052) | ||||||||
Net cash used in financing activities | (50,297) | (31,402) | (56,867) | ||||||||
Net (decrease) increase in cash and cash equivalents | (241) | 889 | (5,781) | ||||||||
Cash and cash equivalents at the beginning of year | 15,252 | 14,363 | 20,144 | ||||||||
Cash and cash equivalents at the end of year | $ | 15,011 | $ | 15,252 | $ | 14,363 | |||||
Supplemental cash flow information: | |||||||||||
Interest paid | $ | 663 | $ | 331 | $ | 385 |
Plan Category | (a) Number of common shares to be issued upon exercise of outstanding options, warrants and rights | (b) Weighted-average exercise price of outstanding options, warrants and rights | (c) Number of common shares remaining available for future issuance under equity compensation plans (excluding common shares reflected in column (a)) | |||||||||||||||||
Equity compensation plans approved by shareholders | 499,871 | (1) | $ | — | (2) | 528,738 | (3) | |||||||||||||
Total | 499,871 | $ | — | 528,738 |
Page | |||||
Report of Independent Registered Public Accounting Firm (Ernst & Young LLP) on Effectiveness of Internal Control Over Financial Reporting | |||||
Report of Independent Registered Public Accounting Firm (Ernst & Young LLP) on Consolidated Financial Statements | |||||
Consolidated Balance Sheets at December 31, 2022 and 2021 | |||||
Consolidated Statements of Income for each of the fiscal years in the three-year period ended December 31, 2022 | |||||
Consolidated Statements of Comprehensive (Loss) Income for each of the fiscal years in the three-year period ended December 31, 2022 | |||||
Consolidated Statements of Stockholders’ Equity for each of the fiscal years in the three-year period ended December 31, 2022 | |||||
Consolidated Statements of Cash Flows for each of the fiscal years in the three-year period ended December 31, 2022 | |||||
Notes to the Consolidated Financial Statements | |||||
Peoples Bancorp Inc. Parent Company Only Financial Information is included in Note 21 of the Notes to the Consolidated Financial Statements |
Exhibit Number | Description | Exhibit Location | ||||||||||||
Agreement and Plan of Merger, dated as of October 23, 2017, between Peoples Bancorp Inc. and ASB Financial Corp.+ | Included as Annex A to the preliminary proxy statement/prospectus which forms a part of the Registration Statement of Peoples Bancorp Inc. on Form S-4/A filed on January 19, 2018 (Registration No. 333-222054) | |||||||||||||
Agreement and Plan of Merger, dated as of March 26, 2021, between Peoples Bancorp Inc. and Premier Financial Bancorp, Inc.++ | Included as Annex A to the preliminary joint proxy statement/prospectus which forms a part of the Registration Statement of Peoples Bancorp Inc. on Form S-4/A filed on June 1, 2021 (Registration No. 333-256040) | |||||||||||||
Agreement and Plan of Merger, dated as of October 24, 2022, between Peoples Bancorp Inc. and Limestone Bancorp, Inc. ++ | Included as Annex A to the preliminary joint proxy statement/prospectus which forms a part of the Registration Statement of Peoples Bancorp Inc. on Form S-4/A filed on January 6, 2023 (Registration No. 333-268728) | |||||||||||||
3.1(a) | Amended Articles of Incorporation of Peoples Bancorp Inc. (as filed with the Ohio Secretary of State on May 3, 1993) P | Incorporated herein by reference to Exhibit 3(a) to the Registration Statement of Peoples Bancorp Inc. on Form 8-B filed on July 20, 1993 (File No. 0-16772) | ||||||||||||
Certificate of Amendment to the Amended Articles of Incorporation of Peoples Bancorp Inc. (as filed with the Ohio Secretary of State on April 22, 1994) | Incorporated herein by reference to Exhibit 3.1(b) to the Quarterly Report on Form 10-Q of Peoples Bancorp Inc. for the quarterly period ended September 30, 2017 (File No. 0-16772) ("Peoples' September 30, 2017 Form 10-Q") | |||||||||||||
Certificate of Amendment to the Amended Articles of Incorporation of Peoples Bancorp Inc. (as filed with the Ohio Secretary of State on April 9, 1996) | Incorporated herein by reference to Exhibit 3.1(c) to Peoples’ September 30, 2017 Form 10-Q | |||||||||||||
Certificate of Amendment to the Amended Articles of Incorporation of Peoples Bancorp Inc. (as filed with the Ohio Secretary of State on April 23, 2003) | Incorporated herein by reference to Exhibit 3(a) to the Quarterly Report on Form 10-Q of Peoples Bancorp Inc. for the quarterly period ended March 31, 2003 (File No. 0-16772) (“Peoples’ March 31, 2003 Form 10-Q”) | |||||||||||||
Certificate of Amendment by Shareholders to the Amended Articles of Incorporation of Peoples Bancorp Inc. (as filed with the Ohio Secretary of State on January 22, 2009) | Incorporated herein by reference to Exhibit 3.1 to the Current Report of Peoples Bancorp Inc. on Form 8-K dated and filed on January 23, 2009 (File No. 0-16772) | |||||||||||||
Certificate of Amendment by Directors to Articles filed with the Ohio Secretary of State on January 28, 2009, evidencing adoption of amendments by the Board of Directors of Peoples Bancorp Inc. to Article FOURTH of the Amended Articles of Incorporation to establish express terms of Fixed Rate Cumulative Perpetual Preferred Shares, Series A, each without par value, of Peoples Bancorp Inc. | Incorporated herein by reference to Exhibit 3.1 to the Current Report of Peoples Bancorp Inc. on Form 8-K dated and filed on February 2, 2009 (File No. 0-16772) | |||||||||||||
Certificate of Amendment by the Shareholders to the Amended Articles of Incorporation of Peoples Bancorp Inc. (as filed with the Ohio Secretary of State on July 28, 2021) | Incorporated herein by reference to Exhibit 3.1(g) to the Quarterly Report on Form 10-Q of Peoples Bancorp Inc. for the quarterly period ended June 30, 2021 (File No. 0-16772) ("Peoples' June 30, 2021 Form 10-Q") | |||||||||||||
+Schedules and exhibits have been omitted pursuant to Item 601(b)(2) of SEC Regulation S-K, as in effect at the time of filing of the Agreement and Plan of Merger. A copy of any omitted schedules or exhibits will be furnished supplementally by Peoples Bancorp Inc. to the SEC on a confidential basis upon request. | ||||||||||||||
++Schedules and exhibits have been omitted pursuant to Item 601(a)(5) of SEC Regulation S-K. A copy of any omitted schedules or exhibits will be furnished supplementally by Peoples Bancorp Inc. to the SEC on a confidential basis upon request. | ||||||||||||||
PPeoples Bancorp Inc. filed this exhibit with the SEC in paper form originally and this exhibit has not been filed with the SEC in electronic format. |
Exhibit Number | Description | Exhibit Location | ||||||||||||
Notice of Removal of Administrator and Appointment of Replacement, dated February 11, 2021, delivered to Wilmington Trust Company by the Continuing Administrators and the Successor Administrator named therein and Peoples Bancorp Inc. | Incorporated herein by reference to Exhibit 4.3(c) to the Annual Report on Form 10-K of Peoples Bancorp Inc. for the fiscal year ended December 31, 2020 (File No. 0-16772) | |||||||||||||
Guarantee Agreement, dated as of June 25, 2007, between NB&T Financial Group, Inc. and Wilmington Trust Company, as guarantee trustee, relating to the Capital Securities (as defined therein) NOTE: Pursuant to the First Supplemental Indenture, dated June 5, 2015, and made to be effective as of 6:00 p.m., Eastern Standard Time, on March 6, 2015, between Wilmington Trust Company, as trustee, and Peoples Bancorp Inc., Peoples Bancorp Inc. succeeded to and was substituted for NB&T Financial Group, Inc. as "Guarantor" | Incorporated herein by reference to Exhibit 4.3 to Peoples' June 30, 2015 Form 10-Q | |||||||||||||
Indenture, dated as of February 26, 2004, between First National Bankshares Corporation, as Issuer, and Wilmington Trust Company, as Trustee, relating to Floating Rate Junior Subordinated Debt Securities Due 2034 | Incorporated herein by reference to Exhibit 4.1(a) to the Quarterly Report on Form 10-Q of Peoples Bancorp Inc. for the quarterly period ended September 30, 2021 (File No. 0-16772) ("Peoples' September 30, 2021 Form 10-Q") | |||||||||||||
First Supplemental Indenture, dated as of January 15, 2016, between Wilmington Trust Company, as Trustee, and Premier Financial Bancorp, Inc., as successor to First National Bankshares Corporation | Incorporated herein by reference to Exhibit 4.1(b) to Peoples' September 30, 2021 Form 10-Q | |||||||||||||
Second Supplemental Indenture, dated as of September 17, 2021, between Wilmington Trust Company, as Trustee, and Peoples Bancorp Inc., as successor to Premier Financial Bancorp, Inc. | Incorporated herein by reference to Exhibit 4.1 (c) to Peoples' September 30, 2021 Form 10-Q | |||||||||||||
Amended and Restated Declaration of Trust of FNB Capital Trust One, dated as of February 26, 2004 NOTE: Pursuant to the First Supplemental Indenture, dated as of January 15, 2016, between Wilmington Trust Company, as Trustee, and Premier Bancorp, Inc., Premier Bancorp, Inc., succeeded to and was substituted for First National Bankshares Corporation as "Sponsor" and pursuant to the Second Supplemental Indenture, dated as of September 17, 2021, between Wilmington Trust Company, as Trustee, and Peoples Bancorp Inc., Peoples Bancorp Inc., succeeded and was substituted for Premier Financial Bancorp, Inc. as "Sponsor" | Incorporated herein by reference to Exhibit 4.2 to Peoples' September 30, 2021 Form 10-Q | |||||||||||||
Notice of Removal of Administrators and Appointment of Replacements, dated September 17, 2021, delivered to Wilmington Trust Company by the Successor Administrators named therein and Peoples Bancorp Inc. | Incorporated herein by reference to Exhibit 4.3 to Peoples' September 30, 2021 Form 10-Q | |||||||||||||
Guarantee Agreement, dated as of February 26, 2004, between First National Bankshares Corporation, as Guarantor, and Wilmington Trust Company, as Guarantee Trustee, related to the Capital Securities (as defined therein) NOTE: Pursuant to the First Supplemental Indenture, dated as of January 15, 2016, between Wilmington Trust Company, as Trustee, and Premier Financial Bancorp, Inc., Premier Financial Bancorp, Inc. succeeded to and was substituted for First National Bankshares Corporation as "Guarantor" and pursuant to the Second Supplemental Indenture, dated as of September 17, 2021, between Wilmington Trust Company, as Trustee, and Peoples Bancorp Inc., Peoples Bancorp Inc. succeeded and was substituted for Premier Financial Bancorp, Inc. as "Guarantor" | Incorporated herein by reference to Exhibit 4.4 to Peoples' September 30, 2021 Form 10-Q | |||||||||||||
Description of Common Shares of Peoples Bancorp Inc. | Incorporated herein by reference to Exhibit 4.9 to the Annual Report of Form 10-K of Peoples Bancorp Inc. for the fiscal year ended December 31, 2021 (File No. 0-16772) | |||||||||||||
Exhibit Number | Description | Exhibit Location | ||||||||||||
Rule 13a-14(a)/15d-14(a) Certifications [Executive Vice President, Chief Financial Officer and Treasurer] | Filed herewith | |||||||||||||
Certifications Pursuant to Section 1350 of Chapter 63 of Title 18 of the United States Code [President and Chief Executive Officer; and Executive Vice President, Chief Financial Officer and Treasurer] | Furnished herewith | |||||||||||||
101.INS | Inline XBRL Instance Document ## | Submitted electronically herewith # | ||||||||||||
101.SCH | Inline XBRL Taxonomy Extension Schema Document | Submitted electronically herewith # | ||||||||||||
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document | Submitted electronically herewith # | ||||||||||||
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document | Submitted electronically herewith # | ||||||||||||
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document | Submitted electronically herewith # | ||||||||||||
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document | Submitted electronically herewith # | ||||||||||||
104 | Cover Page Interactive Data File (formatted as Inline XBRL with applicable taxonomy extension information contained in Exhibits 101) | Submitted electronically herewith | ||||||||||||
# Attached as Exhibit 101 to the Annual Report on Form 10-K for the fiscal year ended December 31, 2022 of Peoples Bancorp Inc. are the following documents formatted in Inline XBRL (eXtensive Business Reporting Language): (i) Consolidated Balance Sheets at December 31, 2022 and December 31, 2021; (ii) Consolidated Statements of Income for the years ended December 31, 2022, 2021 and 2020; (iii) Consolidated Statements of Comprehensive (Loss) Income for the years ended December 31, 2022, 2021 and 2020; (iv) Consolidated Statements of Stockholders' Equity for the years ended December 31, 2022, 2021 and 2020; (v) Consolidated Statements of Cash Flows for the years ended December 31, 2022, 2021 and 2020; and (vi) Notes to the Consolidated Financial Statements. | ||||||||||||||
## The instance document does not appear in the interactive data file because its XBRL tags are embedded within the Inline XBRL document. |
PEOPLES BANCORP INC. | ||||||||||||||
Date: | February 27, 2023 | By: /s/ | CHARLES W. SULERZYSKI | |||||||||||
Charles W. Sulerzyski | ||||||||||||||
President and Chief Executive Officer |
Signatures | Title | Date | |||||||||||||||
/s/ CHARLES W. SULERZYSKI | President, Chief Executive Officer and Director (Principal Executive Officer) | 2/27/2023 | |||||||||||||||
Charles W. Sulerzyski | |||||||||||||||||
/s/ KATIE BAILEY | Executive Vice President, Chief Financial Officer and Treasurer (Principal Financial Officer and Principal Accounting Officer) | 2/27/2023 | |||||||||||||||
Katie Bailey | |||||||||||||||||
/s/ TARA M. ABRAHAM* | Director | 2/27/2023 | |||||||||||||||
Tara M. Abraham | |||||||||||||||||
/s/ S. CRAIG BEAM* | Director | 2/27/2023 | |||||||||||||||
S. Craig Beam | |||||||||||||||||
/s/ GEORGE W. BROUGHTON* | Director | 2/27/2023 | |||||||||||||||
George W. Broughton | |||||||||||||||||
/s/ DAVID F. DIERKER* | Director | 2/27/2023 | |||||||||||||||
David F. Dierker | |||||||||||||||||
/s/ JAMES S. HUGGINS* | Director | 2/27/2023 | |||||||||||||||
James S. Huggins | |||||||||||||||||
/s/ BROOKE W. JAMES* | Director | 2/27/2023 | |||||||||||||||
Brooke W. James | |||||||||||||||||
/s/ SUSAN D. RECTOR* | Chairman of the Board and Director | 2/27/2023 | |||||||||||||||
Susan D. Rector | |||||||||||||||||
/s/ KEVIN R. REEVES* | Director | 2/27/2023 | |||||||||||||||
Kevin R. Reeves | |||||||||||||||||
/s/ CAROL A. SCHNEEBERGER* | Director | 2/27/2023 | |||||||||||||||
Carol A. Schneeberger | |||||||||||||||||
/s/ FRANCES A. SKINNER* | Director | 2/27/2023 | |||||||||||||||
Frances A. Skinner | |||||||||||||||||
/s/ MICHAEL N. VITTORIO* | Director | 2/27/2023 | |||||||||||||||
Michael N. Vittorio | |||||||||||||||||
* | The undersigned, by signing his name hereto, does hereby sign this Annual Report on Form 10-K on behalf of each of the directors of the Registrant identified above pursuant to Powers of Attorney executed by the directors of the Registrant identified above, which Powers of Attorney are filed with this Annual Report on Form 10-K in Exhibit 24. | ||||||||||||||||
By: | /s/ CHARLES W. SULERZYSKI | ||||||||||||||||
Charles W. Sulerzyski | |||||||||||||||||
President and Chief Executive Officer | |||||||||||||||||
Attorney-in-Fact |
1. | Reward employees of Peoples Bancorp Inc. (“Peoples”) and subsidiaries of Peoples for enhancing shareholder value. | ||||
2. | Contribute toward a compensation program that serves to retain, recruit and develop talented financial services personnel and management. | ||||
3. | Discourage unnecessary and excessive risk-taking. | ||||
1. | The Compensation Committee approves the participation of executive officers and other senior officers of Peoples and its subsidiaries in the annual incentive program. Executive officers identify other officers and employees who serve Peoples in leadership or support roles for inclusion in the annual incentive program. | ||||
2. | Participants must be employed as of the payout date in respect of a measurement period to receive payment for such measurement period; provided, however, that participants not employed as of the payout date may still receive payment if they were employed as of the last day of the measurement period and their employment terminated due to Retirement or involuntarily without Cause. The terms “Retirement” and “Cause” have the meanings given to them in the Peoples Bancorp Third Amended and Restated 2006 Equity Plan. |
3. | Participants must be employed before October 1 of Peoples’ fiscal year to be eligible for payment for the related measurement period. Exceptions to this requirement may be made at the discretion of the Compensation Committee. | ||||
4. | The Compensation Committee retains the right to exercise discretion in the awarding of payments under the annual incentive program. |
1. | The annual incentive program is designed to recognize and reward performance against established financial and non-financial targets. | |||||||
a. | Corporate goals and individual goals are established on an annual basis. |
i. | Corporate goals are established for the measurement period by the Board of Directors of Peoples Bancorp Inc. at its discretion. | ||||
ii. | It is contemplated the corporate goals will be comprised of a variety of metrics related to Peoples’ consolidated financial performance. |
iii. | Individual goals for the executive officers of Peoples will be approved by the Compensation Committee on an annual basis. | |||||||
b. | An absolute minimum level of corporate performance in respect of one or more of the financial goals will be established on an annual basis by the Board of Directors of Peoples. This is the minimum level of corporate performance that must be achieved before any incentive payout, which may otherwise be earned in respect of the level of achievement for any other corporate or individual goal(s) can be made. If Peoples fails to achieve the designated absolute minimum level of corporate performance, participants will generally not be eligible for any incentive payout. However, the Compensation Committee retains the right to make incentive payouts in its discretion based on achievement of the established corporate and/or individual goals earned for a measurement period, even if the absolute minimum level of corporate performance is not attained. |
2. | Three levels of achievement are established for each goal: threshold, target and maximum. | ||||
3. | All potential payouts under the annual incentive program will represent a percentage of each participant’s base annual salary (or its equivalent based upon the participant’s role within a subsidiary of Peoples) earned in the measurement period, which percentage may vary by the participant as determined by the Compensation Committee. | ||||
4. | All awards earned for a measurement period under the annual incentive program will be paid in cash by March 15 of the year following the measurement period, which is Peoples' fiscal year. |
Subsidiaries of Peoples Bancorp Inc. | |||||||||||
The following are the only subsidiaries of Peoples Bancorp Inc.: | |||||||||||
Name of Subsidiary | Jurisdiction of Incorporation or Organization | ||||||||||
Peoples Bank | Ohio | ||||||||||
Peoples Insurance Agency, LLC (also does business as “Peoples Insurance”) | Ohio | ||||||||||
Marietta Mills Limited Partnership | Ohio | ||||||||||
Baltimore MFH LLC | Maryland | ||||||||||
Vantage Financial, LLC | Minnesota | ||||||||||
Peoples Investment Company | Ohio | ||||||||||
NB&T Statutory Trust III | Delaware | ||||||||||
FNB Capital Trust One | Delaware | ||||||||||
Peoples Risk Management, Inc. | Nevada | ||||||||||
Second and Butler, LLC | Ohio |
1) | Registration Statement (Form S-8, No. 333-189744) related to the Peoples Bancorp Inc. Retirement Savings Plan, | |||||||
2) | Registration Statements (Form S-8, No. 333-43629 and Form S-8, No. 333-179897) related to the Peoples Bancorp Inc. Third Amended and Restated Deferred Compensation Plan for Directors of Peoples Bancorp Inc. and Subsidiaries as amended (formerly known as the Peoples Bancorp Inc. Second Amended and Restated Deferred Compensation Plan for Directors of Peoples Bancorp Inc. and Subsidiaries and the Peoples Bancorp Inc. Deferred Compensation Plan for Directors of Peoples Bancorp Inc. and Subsidiaries), | |||||||
3) | Registration Statements (Form S-8, No. 333-136383, Form S-8, No. 333-188149 and Form S-8, No. 333-226451) related to the Peoples Bancorp Inc. Third Amended and Restated 2006 Equity Plan (formerly known as the Peoples Bancorp Inc. Second Amended and Restated 2006 Equity Plan, the Peoples Bancorp Inc. Amended and Restated 2006 Equity Plan and the Peoples Bancorp Inc. 2006 Equity Plan), | |||||||
4) | Registration Statement (Form S-8, No. 333-195986) related to the Peoples Bancorp Inc. Employee Stock Purchase Plan, | |||||||
5) | Registration Statement (Form S-3, No. 33-54003) related to the Peoples Bancorp Inc. Dividend Reinvestment Plan, , | |||||||
6) | Registration Statement (Form S-3/A, No. 33-54003) pertaining to Post-Effective Amendments No. 1, 2, and 3 to Form S-3 related to the Peoples Bancorp Inc. Dividend Reinvestment and Stock Purchase Plan, | |||||||
7) | Registration Statement (Form S-3, No. 333-211637) related to Peoples Bancorp Inc. Dividend Reinvestment and Stock Purchase Plan, | |||||||
8) | Registration Statement (Form S-4, No. 333-196872), related to common shares to be issued as contemplated by the Agreement and Plan of Merger, dated as of April 4, 2014, between Peoples Bancorp Inc. and Ohio Heritage Bancorp, Inc., | |||||||
9) | Registration Statement (Form S-4, No. 333-197736), related to common shares to be issued as contemplated by the Agreement and Plan of Merger, dated as of April 21, 2014, as amended effective as of July 25, 2014, among Peoples Bancorp Inc., Peoples Bank, National Association and North Akron Savings Bank, | |||||||
10) | Registration Statement (Form S-4, No. 333-199152), related to common shares to be issued as contemplated by the Agreement and Plan of Merger, dated as of August 4, 2014, as amended, between Peoples Bancorp Inc. and NB&T Financial Group, Inc. | |||||||
11) | Registration Statement (Form S-4, No. 333-222054), related to common shares to be issued as contemplated by the Agreement and Plan of Merger, dated as of October 23, 2017, between Peoples Bancorp Inc. and ASB Financial Corp. | |||||||
12) | Registration Statement (Form S-4, No. 333-256040), related to common shares to be issued as contemplated by the Agreement and Plan of Merger, dated as of March 26, 2021, between Peoples Bancorp Inc. and Premier Financial Bancorp, Inc. and | |||||||
13) | Registration Statement (Form S-4, No. 333-268728), related to common shares to be issued as contemplated by the Agreement and Plan of Merger, dated as of October 24, 2022, between Peoples Bancorp Inc. and Limestone Bancorp, Inc. |
/s/ Ernst & Young LLP |
/s/ | TARA M. ABRAHAM | ||||||||||
[Signature] | |||||||||||
Tara M. Abraham | |||||||||||
[Printed Name] |
/s/ | S. CRAIG BEAM | ||||||||||
[Signature] | |||||||||||
S. Craig Beam | |||||||||||
[Printed Name] |
/s/ | GEORGE W. BROUGHTON | ||||||||||
[Signature] | |||||||||||
George W. Broughton | |||||||||||
[Printed Name] |
/s/ | DAVID F. DIERKER | ||||||||||
[Signature] | |||||||||||
David F. Dierker | |||||||||||
[Printed Name] |
/s/ | JAMES S. HUGGINS | ||||||||||
[Signature] | |||||||||||
James S. Huggins | |||||||||||
[Printed Name] |
/s/ | BROOKE W. JAMES | ||||||||||
[Signature] | |||||||||||
Brooke W. James | |||||||||||
[Printed Name] |
/s/ | SUSAN D. RECTOR | ||||||||||
[Signature] | |||||||||||
Susan D. Rector | |||||||||||
[Printed Name] |
/s/ | KEVIN R. REEVES | ||||||||||
[Signature] | |||||||||||
Kevin R. Reeves | |||||||||||
[Printed Name] |
/s/ | CAROL A. SCHNEEBERGER | ||||||||||
[Signature] | |||||||||||
Carol Schneeberger | |||||||||||
[Printed Name] |
/s/ | FRANCES SKINNER | ||||||||||
[Signature] | |||||||||||
Frances Skinner | |||||||||||
[Printed Name] |
/s/ | MICHAEL N. VITTORIO | ||||||||||
[Signature] | |||||||||||
Michael N. Vittorio | |||||||||||
[Printed Name] |
Date: | February 27, 2023 | By:/s/ | CHARLES W. SULERZYSKI | |||||||||||
Charles W. Sulerzyski | ||||||||||||||
President and Chief Executive Officer |
Date: | February 27, 2023 | By:/s/ | KATIE BAILEY | |||||||||||
Katie Bailey | ||||||||||||||
Executive Vice President, | ||||||||||||||
Chief Financial Officer and Treasurer |
Date: | February 27, 2023 | By:/s/ | CHARLES W. SULERZYSKI | |||||||||||
Charles W. Sulerzyski | ||||||||||||||
President and Chief Executive Officer |
Date: | February 27, 2023 | By:/s/ | KATIE BAILEY | |||||||||||
Katie Bailey | ||||||||||||||
Executive Vice President, | ||||||||||||||
Chief Financial Officer and Treasurer |