Peoples Bancorp Inc (PEBO) 2023 Q1 法說會逐字稿

Good morning, and welcome to the Peoples Bancorp Inc. Conference Call. My name is Kate, and I will be your conference facilitator.

早上好，歡迎來到 Peoples Bancorp Inc. 電話會議。我叫凱特，我將擔任你們的會議主持人。

Today's call will cover a discussion of the results of operations for the quarterly period ended March 31, 2023. (Operator Instructions) This call is also being recorded. If you object to the recording, please disconnect at this time.

今天的電話會議將討論截至 2023 年 3 月 31 日的季度運營結果。（操作員說明）此電話會議也正在錄音中。如果您反對錄音，請此時斷開連接。

Please be advised that the commentary in this call will contain projections or other forward-looking statements regarding Peoples' future financial performance or future events. These statements are based on management's current expectations. The statements in this call, which are not historical fact, are forward-looking statements and involve a number of risks and uncertainties detailed in Peoples' Securities and Exchange Commission filings. Management believes the forward-looking statements made during this call are based on reasonable assumptions within the bounds of their knowledge of Peoples' business and operations. However, it is possible actual results may differ materially from these forward-looking statements.

請注意，本次電話會議的評論將包含有關 Peoples 未來財務業績或未來事件的預測或其他前瞻性陳述。這些陳述是基於管理層目前的預期。本次電話會議中的陳述並非歷史事實，屬於前瞻性陳述，涉及人民證券交易委員會備案文件中詳述的許多風險和不確定性。管理層認為，在本次電話會議中做出的前瞻性陳述是基於他們對 Peoples 業務和運營的了解範圍內的合理假設。然而，實際結果可能與這些前瞻性陳述存在重大差異。

Peoples disclaims any responsibility to update these forward-looking statements after this call, except as may be required by applicable legal requirements. Peoples' first quarter 2023 earnings release was issued this morning and is available at peoplesbancorp.com under Investor Relations. A reconciliation of the non-generally accepted accounting principles or GAAP financial measures discussed during this call to the most directly comparable GAAP financial measures is included at the end of the earnings release.

除適用法律要求外，Peoples 不承擔在本次電話會議後更新這些前瞻性陳述的任何責任。 Peoples 的 2023 年第一季度收益發佈於今天上午發布，可在 peoplesbancorp.com 的投資者關係下獲取。本次電話會議期間討論的非普遍接受的會計原則或 GAAP 財務措施與最直接可比的 GAAP 財務措施的對賬包含在收益發布的末尾。

This call will be -- will include about 25 to 30 minutes of prepared commentary, followed by a question-and-answer period, which I will facilitate. An archived webcast of this call will be available on peoplesbancorp.com in the Investor Relations section for 1 year.

這次電話會議將包括大約 25 到 30 分鐘的準備好的評論，然後是問答時間，我將協助進行。此電話會議的存檔網絡廣播將在 peoplesbancorp.com 的投資者關係部分提供 1 年。

Participants in today's call will be Chuck Sulerzyski, President and Chief Executive Officer; and Katie Bailey, Chief Financial Officer and Treasurer, and each will be available for questions following opening statements.

參加今天電話會議的有總裁兼首席執行官 Chuck Sulerzyski；和首席財務官兼財務主管 Katie Bailey，他們將在開幕詞後回答問題。

Mr. Sulerzyski, you may begin your conference.

Sulerzyski 先生，您可以開始您的會議了。

Thank you, Kate. Good morning, and thank you for joining our call today.

謝謝你，凱特。早上好，感謝您今天加入我們的電話會議。

Based on our diversified business model and strong core deposit franchise, we are pleased to report strong quarterly earnings. In our earnings release earlier this morning, we inadvertently underreported our weighted average diluted shares by 618,965 shares. As a result, our diluted earnings per share was $0.94, which was $0.02 lower than we reported in our earnings release of $0.96. We will issue an 8-K with a new release today. Katie will review our excellent results a little later in the call.

基於我們多元化的業務模式和強大的核心存款業務，我們很高興地報告強勁的季度收益。在今天上午早些時候發布的收益報告中，我們無意中少報了 618,965 股的加權平均稀釋股。因此，我們的每股攤薄收益為 0.94 美元，比我們在收益發布中報告的 0.96 美元低 0.02 美元。我們將在今天發布帶有新版本的 8-K。稍後，凱蒂將在電話中回顧我們的出色成果。

In light of the current events in the banking industry, we will start our discussion with deposits, liquidity, credit and capital. Our deposit base is a key strength of Peoples. At quarter end, only 32% of our deposit balances exceeded FDIC insurance limits. This is down from 33% at year-end. We routinely pledge investment securities against certain governmental deposit accounts, which covered nearly $700 million of uninsured deposit balances at quarter end. Excluding our uninsured deposits that are covered by pledged investment securities, our uninsured deposits were only 19% of total deposits at quarter end.

結合銀行業的時事，我們先從存款、流動性、信貸、資本入手。我們的存款基礎是 Peoples 的關鍵優勢。季度末，我們只有 32% 的存款餘額超過 FDIC 保險限額。這比年底時的 33% 有所下降。我們經常將投資證券抵押給某些政府存款賬戶，這些賬戶在季度末覆蓋了近 7 億美元的未投保存款餘額。不包括我們被質押投資證券覆蓋的未投保存款，我們未投保的存款在季度末僅佔總存款的 19%。

Our liquidity position more than covers the remaining uninsured deposits. Our deposits are comprised of 75% retail deposits, which includes consumers and small businesses and 25% commercial balances. Our average customer deposit relationship was $30,000 at quarter end. At the same time, our median retail customer balance was a little over $3,000 while our median commercial customer balance was approximately $65,000. We effectively controlled our cost of deposits, which was 40 basis points for the quarter compared to 19 basis points for the linked quarter. At the same time, our cost of funds were 72 basis points compared to 36 basis points for the linked quarter. Excluding our brokered CDs, which we use for funding, our deposit costs for the quarter were 29 basis points compared to 16 basis points for the linked quarter. We estimate approximately 85% of our deposits are from rural markets, while only 15% come from urban markets.

我們的流動性頭寸超過了剩餘的未投保存款。我們的存款包括 75% 的零售存款，其中包括消費者和小型企業以及 25% 的商業餘額。季度末我們的平均客戶存款關係為 30,000 美元。與此同時，我們的零售客戶餘額中位數略高於 3,000 美元，而我們的商業客戶餘額中位數約為 65,000 美元。我們有效地控制了存款成本，本季度為 40 個基點，而上一季度為 19 個基點。與此同時，我們的資金成本為 72 個基點，而上一季度為 36 個基點。不包括我們用於融資的經紀 CD，我們本季度的存款成本為 29 個基點，而相關季度為 16 個基點。我們估計大約 85% 的存款來自農村市場，而只有 15% 來自城市市場。

During the recent turmoil in other markets, our clients have remained calm, and we have seen little unusual deposit movement. Our team has been proactive in educating our clients on FDIC insurance limits and available options. We have also been reassuring our clients of our bank's financial stability, which has been well received in the communities we service. Our total deposits, excluding brokered CDs declined $76 million or 1% compared to year-end. We have had inflated deposits related to COVID, so some of that decline was expected over time. We had outflows of savings and money market balances, but those were nearly offset with an increase in our retail CDs as we offered more attractive pricing. We did experience a decline in our noninterest-bearing deposits. However, some of the decline was tempered by an increase in governmental deposits that are seasonal in nature. Our demand deposits comprised 46% of total deposits at year-end compared to 48% at year-end and 47% a year ago.

在最近其他市場的動盪中，我們的客戶保持冷靜，我們幾乎沒有看到異常的存款變動。我們的團隊一直積極向我們的客戶介紹 FDIC 保險限額和可用選項。我們還一直在向客戶保證我們銀行的財務穩定性，這在我們服務的社區中得到了好評。與年底相比，我們的總存款（不包括經紀 CD）下降了 7600 萬美元或 1%。我們已經誇大了與 COVID 相關的存款，因此隨著時間的推移，部分下降是預料之中的。我們有儲蓄和貨幣市場餘額的外流，但由於我們提供更具吸引力的定價，這些幾乎被零售 CD 的增加所抵消。我們的無息存款確實有所下降。然而，部分下降因政府存款的季節性增加而有所緩和。我們的活期存款佔年底總存款的 46%，而年底為 48%，一年前為 47%。

Moving to our liquidity position. We continually monitor our liquidity position and have excellent balance sheet liquidity with quick access to funds. Our loan-to-deposit ratio stood at 82% at March 31, which was unchanged from year-end. At quarter end, we had liquefiable assets of around $570 million, including cash and unpledged investment securities. We had nearly $3 million of contingent sources of liquidity, which include potential borrowings, the value of other investment securities that had not been pledged and available CDARS and ICS funding. Of the $3 billion, nearly $800 million of the available funding is from lines available from the FHLB and the FRB, assuming we have all available potential collateral pledged.

轉向我們的流動性頭寸。我們不斷監控我們的流動性狀況，並擁有出色的資產負債表流動性，可以快速獲得資金。截至 3 月 31 日，我們的貸存比率為 82%，與年底持平。截至季度末，我們擁有約 5.7 億美元的流動資產，包括現金和未抵押的投資證券。我們有近 300 萬美元的或有流動性來源，其中包括潛在藉款、其他未抵押的投資證券的價值以及可用的 CDARS 和 ICS 資金。在這 30 億美元中，近 8 億美元的可用資金來自 FHLB 和 FRB 的可用額度，前提是我們已承諾所有可用的潛在抵押品。

We have not utilized the Federal Reserve's bank term funding program since its inception as we have not needed additional funding, and there is uncertainty around the markets viewing it negatively. We estimate that using this line as of March 31, in lieu of other funding from the FHLB and the FRB would have saved us around $740,000 annually in expenses. This funding source also allows us to pledge investment securities at par as collateral instead of at-market value. We see the benefit of utilizing this line due to the lower cost compared to other funding sources and believe the projected savings is justified. Therefore, we may utilize this funding source in the future.

自美聯儲的銀行定期融資計劃啟動以來，我們沒有使用過它，因為我們不需要額外的資金，而且市場對它持負面看法存在不確定性。我們估計，截至 3 月 31 日，使用這條線路代替 FHLB 和 FRB 的其他資金，每年可為我們節省大約 740,000 美元的開支。這種資金來源還使我們能夠以面值而不是市價質押投資證券作為抵押品。由於與其他資金來源相比成本較低，我們看到了利用這條線路的好處，並相信預計的節省是合理的。因此，我們將來可能會利用此資金來源。

From a credit quality perspective, we had stable metrics compared to year-end. Our allowance for credit losses was 1.12% of total loans, which was flat compared to year-end. While we increased reserves for pooled loans during the quarter, much of this increase was offset by payoffs of individually annualized loans, which resulted in a provision for credit losses that was mostly driven by charge-offs during the quarter. Nonperforming assets improved $2.4 million and declined to 0.58% of total assets compared to 0.63% at year-end. This decrease in nonperforming assets was driven by payoffs and paydowns on multiple relationships since year-end coupled with loans that were no longer past due. The portion of our loan portfolio considered current at quarter end was 98.8%, an improvement from 98.6% at year-end.

從信用質量的角度來看，與年底相比，我們有穩定的指標。我們的信貸損失撥備佔貸款總額的 1.12%，與年末持平。雖然我們在本季度增加了合併貸款的準備金，但這一增加的大部分被單獨年化貸款的還款所抵消，這導致信貸損失準備金主要由本季度的沖銷驅動。不良資產減少了 240 萬美元，佔總資產的比例從年底的 0.63% 下降到 0.58%。不良資產的減少是由自年底以來多重關係的收益和償還以及不再逾期的貸款推動的。我們的貸款組合在季度末被視為流動的部分為 98.8%，比年底的 98.6% 有所改善。

While the current rate environment has put pressure on commercial customers, we have not seen a meaningful uptick in delinquencies. Our quarterly annualized net charge-off rate was 13 basis points for the quarter, an improvement from 18 basis points for the fourth quarter. This decline was driven by lower lease net charge-offs. Our consumer indirect loan charge-offs have grown in recent periods and with 7 basis points of net charge-offs for the quarter compared to 6 basis points for the linked quarter and 3 basis points for the prior year quarter.

雖然當前的利率環境給商業客戶帶來了壓力，但我們並未看到拖欠率顯著上升。本季度我們的季度年化淨註銷率為 13 個基點，比第四季度的 18 個基點有所改善。這一下降是由較低的租賃淨沖銷推動的。我們的消費者間接貸款註銷最近有所增長，本季度淨註銷為 7 個基點，而相關季度為 6 個基點，去年同期為 3 個基點。

During the first quarter, our number of indirect charge-offs declined. However, the average size of charge-offs grew, resulting in higher annualized net charge-off rate due to used car pricing. The indirect loan charge-offs are within a range we would expect and we are comfortable with them.

在第一季度，我們的間接沖銷數量有所下降。然而，註銷的平均規模增加，導致二手車定價導致年化淨註銷率更高。間接貸款沖銷在我們預期的範圍內，我們對此感到滿意。

Our classified loans experienced a slight increase of $4 million compared to the linked quarter end. This was driven by the downgrade of one commercial and industrial relationship. At the same time, our criticized loans were up 4%. This increase was largely due to 3 commercial and industrial relationships. The increase in criticized loans was partially offset by paydowns of $16 million in upgrades of $2 million during the quarter.

與相關季度末相比，我們的分類貸款略微增加了 400 萬美元。這是由一種商業和工業關係的降級推動的。與此同時，我們的批評貸款增加了 4%。這一增長主要是由於 3 商業和工業關係。本季度 200 萬美元的升級償還了 1600 萬美元，部分抵消了受到批評的貸款的增加。

With regards to commercial office space, this remains a very small portion of our loan portfolio. Our total exposure was $107 million at quarter end and represented 1.9% of our total loan portfolio. The top 10 borrowers represent 55% of the commercial office space loan portfolio and have average liquidity of $15 million. These borrowers averaged $6 million in commitments and $5.5 million in outstanding balances. We only have $1.7 million of commercial office space balances maturing in 2023.

關於商業辦公空間，這仍然是我們貸款組合中很小的一部分。截至季度末，我們的總風險敞口為 1.07 億美元，占我們總貸款組合的 1.9%。前 10 名借款人佔商業辦公空間貸款組合的 55%，平均流動資金為 1500 萬美元。這些借款人的平均承諾額為 600 萬美元，未償餘額為 550 萬美元。我們只有 170 萬美元的商業辦公空間餘額在 2023 年到期。

As for our multifamily real estate loan portfolio, our total exposure was $426 million at quarter end. The outstanding balances of this portfolio were $235 million at quarter end, and the majority of our exposure is within the construction phase with top-tier developers. This portfolio is concentrated in Central Ohio, and our top 10 exposures account for 50% of the portfolio. The average liquidity of these top 10 borrowers is $21 million. We see no major problems with our projects where there has been the occasional permitting or construction delay. Projects have largely been leasing up at the desired speed with most of them at rents higher than projected.

至於我們的多戶房地產貸款組合，我們在季度末的總風險敞口為 4.26 億美元。截至季度末，該投資組合的未償餘額為 2.35 億美元，我們的大部分敞口都在頂級開發商的建設階段。該投資組合集中在俄亥俄州中部，我們的前 10 大風險敞口占投資組合的 50%。這十大借款人的平均流動性為 2100 萬美元。我們認為我們的項目在偶爾出現許可或施工延誤的情況下沒有重大問題。項目基本上以預期的速度出租，其中大部分租金高於預期。

We remain focused on growing and maintaining a diversified loan portfolio. At quarter end, our commercial real estate loans comprised 31% of total loans, while commercial and industrial loans were 19%. Construction loans were 5%, specialty finance loans totaled 10% and our consumer loans were 35%. Of our commercial real estate loans, 37% is owner-occupied, which we view more like commercial and industrial loans. We generally only do these transactions where we bank the operating company.

我們仍然專注於發展和維持多元化的貸款組合。截至季度末，我們的商業房地產貸款佔總貸款的 31%，而商業和工業貸款佔 19%。建築貸款佔 5%，專業金融貸款佔 10%，我們的消費貸款佔 35%。在我們的商業房地產貸款中，37% 是自住貸款，我們認為這更像是商業和工業貸款。我們通常只在我們為運營公司提供銀行服務的地方進行這些交易。

Compared to year-end, our loan portfolio grew 4% on an annualized basis. This includes 16% annualized growth in commercial real estate loans and 11% annualized growth in both leases and consumer indirect loan balances. At quarter end, the percentage of fixed rate loans to total loans was 45%, while our floating rate loans were 55%. We have confidence in our ability to grow our overall loan portfolio organically with credit quality at the forefront of our process.

與年底相比，我們的貸款組合按年率計算增長了 4%。這包括商業房地產貸款年化 16% 的增長以及租賃和消費者間接貸款餘額年化 11% 的增長。季度末，固定利率貸款佔貸款總額的百分比為 45%，而我們的浮動利率貸款為 55%。我們有信心在我們流程的最前沿以信用質量有機地增長我們的整體貸款組合。

From a capital perspective, our capital ratios continue to be strong and grew at quarter end. We are meaningfully above well-capitalized levels. At March 31, even if we included our accumulated other comprehensive loss and held-to-maturity investment security losses, we would still be above well-capitalized levels for all our capital ratios.

從資本的角度來看，我們的資本比率繼續保持強勁並在季度末有所增長。我們明顯高於資本充足的水平。截至 3 月 31 日，即使我們計入累計其他綜合損失和持有至到期投資證券損失，我們的所有資本比率仍將高於資本充足水平。

I will now turn the call over to Katie for additional details around our earnings and financial performance.

我現在將電話轉給凱蒂，了解有關我們收益和財務業績的更多詳細信息。

Chuck always deals the earnings discussion, and I am delighted to report the following good news.

Chuck 總是處理收益討論，我很高興地報告以下好消息。

Our earnings improved compared to the linked quarter and were highlighted by diluted EPS totaling $0.94 per share, which was negatively impacted by $0.02 for acquisition-related expenses versus consensus estimates of $0.91. Continued improvement in our net interest income, which was up 3% and net interest margin expansion of 9 basis points. Fee-based income growth of 9%, which was primarily due to the annual performance-based insurance income we received in the first quarter of each year. Our pretax pre-provision return on average assets grew 5 basis points to 2.11%. We also had 4% annualized total loan growth compared to year-end.

與相關季度相比，我們的收益有所改善，稀釋後的每股收益總計 0.94 美元突顯了這一點，收購相關費用受到 0.02 美元的負面影響，而市場普遍預期為 0.91 美元。我們的淨利息收入持續改善，增長 3%，淨息差擴大 9 個基點。基於費用的收入增長 9%，這主要是由於我們在每年第一季度收到的基於績效的年度保險收入。我們的稅前撥備前平均資產回報率增長 5 個基點至 2.11%。與年底相比，我們的年化總貸款增長率也為 4%。

Our deposit costs, excluding brokered CDs, remained low and only grew 13 basis points compared to the linked quarter. Our tangible equity to tangible assets ratio improved to 7.1% and was up 41 basis points compared to year-end. At the same time, our tangible book value per share improved $1.14 compared to year-end and was $17.37.

我們的存款成本（不包括經紀 CD）仍然很低，與相關季度相比僅增長 13 個基點。我們的有形權益與有形資產比率提高至 7.1%，與年底相比上升了 41 個基點。與此同時，我們的每股有形賬面價值比年底增加了 1.14 美元，達到 17.37 美元。

For the quarter, our net income was impacted by expected additional expenses we typically recognize in the first quarter of each year. As a result, our total noninterest expense for the quarter included employer contributions to health savings accounts of $591,000 and stock-based compensation expense for certain employees of $1.1 million. Combined, these additional expenses reduced our diluted EPS by $0.05. We also incurred $551,000 in acquisition-related expenses for the quarter, which negatively impacted our diluted EPS by $0.02.

對於本季度，我們的淨收入受到我們通常在每年第一季度確認的預期額外費用的影響。因此，我們本季度的非利息總支出包括雇主對健康儲蓄賬戶的貢獻 591,000 美元和某些員工的股票補償支出 110 萬美元。這些額外費用加起來使我們的攤薄後每股收益減少了 0.05 美元。本季度我們還產生了 551,000 美元的收購相關費用，這對我們的攤薄每股收益產生了 0.02 美元的負面影響。

Our net interest income grew compared to the prior period as the higher market interest rates benefited our net -- our interest income outpacing the increase in our funding costs. Compared to the linked quarter, net interest margin grew 9 basis points. Accretion income declined over $220,000 and added 13 basis points to margin compared to 14 basis points for the linked quarter.

我們的淨利息收入與上一時期相比有所增長，因為較高的市場利率有利於我們的淨 - 我們的利息收入超過了融資成本的增長。與上一季度相比，淨息差增長了 9 個基點。增值收入下降超過 220,000 美元，利潤率增加 13 個基點，而上一季度為 14 個基點。

During the first quarter, we sold nearly $100 million of available-for-sale investment securities and recognized a loss of $1.9 million. We expect to recover this loss within the calendar year. The purpose of the sales was to make our investment portfolio and overall balance sheet more efficient and improve net interest income. Compared to the linked quarter, our investment yields improved 41 basis points.

第一季度，我們出售了近 1 億美元的可供出售投資證券，確認了 190 萬美元的虧損。我們希望在日曆年內彌補這一損失。出售的目的是使我們的投資組合和整體資產負債表更有效率，並提高淨利息收入。與上一季度相比，我們的投資收益率提高了 41 個基點。

Our total loan yields improved to 6.1% from 5.6% for the linked quarter and 4.5% for the prior year quarter. Our fee-based income improved 9% compared to the linked quarter primarily due to the annual performance-based insurance commissions we received in the first quarter of each year.

我們的總貸款收益率從相關季度的 5.6% 和去年同期的 4.5% 提高到 6.1%。與相關季度相比，我們的收費收入增長了 9%，這主要是由於我們在每年第一季度收到的基於績效的年度保險佣金。

Our total noninterest expense grew compared to the linked quarter. As I mentioned earlier, we were impacted by additional costs we typically recognized during the first quarter of each year. We also had higher franchise tax and electronic banking expense compared to the linked quarter.

與相關季度相比，我們的非利息支出總額有所增長。正如我之前提到的，我們受到通常在每年第一季度確認的額外成本的影響。與相關季度相比，我們的特許經營稅和電子銀行費用也更高。

Our reported efficiency ratio was 57.8% for the quarter compared to 56.7% for the linked quarter. When adjusted for noncore expenses, our efficiency ratio was 57.2% compared to 55.9% for the linked quarter. From a balance sheet perspective, we grew our investment securities portfolio to 24.6% of total assets compared to 24.2% at year-end.

我們報告的本季度效率比為 57.8%，而上一季度為 56.7%。經非核心支出調整後，我們的效率比為 57.2%，而上一季度為 55.9%。從資產負債表的角度來看，我們將投資證券組合從年底的 24.2% 增加到總資產的 24.6%。

We have been selectively choosing certain securities to enhance our portfolio prior to the closing of the Limestone merger, as we manage towards our future outlook for the balance sheet. We still anticipate that investment securities as a percent of total assets will decline in future periods, as we manage our liquidity position and bring on Limestone. We will continue to actively manage the investment securities portfolio and may be opportunistic as it relates to future sales as we were in the first quarter where there is a benefit from an interest rate and earn-back perspective. From a liquidity viewpoint, we do not anticipate the need to liquidate our investments to ensure future liquidity.

在 Limestone 合併完成之前，我們一直在選擇性地選擇某些證券來增強我們的投資組合，因為我們正在努力實現資產負債表的未來前景。我們仍然預計，隨著我們管理流動性頭寸並引入 Limestone，投資證券佔總資產的百分比將在未來一段時間內下降。我們將繼續積極管理投資證券組合，並且可能會投機取巧，因為它與未來銷售有關，因為我們在第一季度從利率和賺取回報的角度來看是有好處的。從流動性的角度來看，我們預計不需要清算我們的投資以確保未來的流動性。

As it relates to our interest rate sensitivity, we continue to manage to a relatively neutral balance sheet position. We remain slightly asset-sensitive. We have taken actions over the last couple of quarters to reduce our exposure to lower interest rates, primarily through the investment security purchases we have made. We anticipate that the Limestone merger will have a minimal impact on our interest rate sensitivity position. We believe they may reduce our asset sensitivity slightly, but will not meaningfully change our interest rate profile.

由於這與我們的利率敏感性有關，我們繼續保持相對中性的資產負債表狀況。我們仍然對資產略微敏感。我們在過去幾個季度採取了行動，主要通過我們購買的投資證券來減少我們對較低利率的風險敞口。我們預計 Limestone 合併對我們的利率敏感性頭寸的影響微乎其微。我們認為它們可能會略微降低我們的資產敏感性，但不會顯著改變我們的利率狀況。

We continue to have a strong capital position, which further grew this quarter and exceeds well capitalized limits. At quarter end, our common equity Tier 1 capital ratio improved 30 basis points compared to year-end, while our total risk-based capital grew 29 basis points, and our leverage ratio includes 10 basis points.

我們繼續擁有強大的資本狀況，本季度進一步增長並超過了資本充足的限制。季度末，我們的普通股一級資本比率比年末提高了 30 個基點，而我們的總風險資本增長了 29 個基點，我們的槓桿率包括 10 個基點。

In reaction to the recent bank failures, we have taken additional steps to analyze our capital levels. Although we exclude our accumulated other comprehensive loss from the calculation of our regulatory capital ratios, as permitted by regulators, we completed an analysis where we included that loss as well as losses on our held-to-maturity investment securities portfolio in our regulatory capital ratios. Even including these unrealized losses, which totaled $165 million after tax, our regulatory capital ratios have all been considered -- would have all been considered above well-capitalized levels at March 31, 2023.

為了應對最近的銀行倒閉事件，我們採取了額外的措施來分析我們的資本水平。儘管我們在監管資本比率的計算中排除了我們的累計其他綜合損失，但在監管機構允許的情況下，我們完成了一項分析，其中我們將該損失以及我們持有至到期投資證券組合的損失包括在我們的監管資本比率中.即使包括這些稅後總計 1.65 億美元的未實現虧損，我們的監管資本比率也已全部考慮在內——在 2023 年 3 月 31 日，我們的監管資本比率都將被視為高於資本充足水平。

For example, at quarter end, our common equity Tier 1 capital ratio -- capital was $624 million or 12.2% of risk-weighted assets. If you reduce our common equity Tier 1 capital by our accumulated other comprehensive loss of $111 million, that ratio is 10% of risk-weighted assets. If you further reduce our common equity Tier 1 capital by our after-tax unrealized loss on our held-to-maturity investment securities, which was $54 million, it is -- it resulted in a ratio of 8.7% of risk-weighted assets. These calculations are above the 6.5% well-capitalized level set by regulators for this particular ratio.

例如，在季度末，我們的普通股一級資本比率——資本為 6.24 億美元或風險加權資產的 12.2%。如果將我們的普通股一級資本減去我們累計的其他綜合損失 1.11 億美元，則該比率為風險加權資產的 10%。如果您通過持有至到期投資證券的稅後未實現虧損進一步減少我們的普通股一級資本，即 5400 萬美元，那麼它導致風險加權資產的比率為 8.7%。這些計算結果高於監管機構為此特定比率設定的 6.5% 的資本充足水平。

Our tangible equity to tangible asset ratio improved to 7.1% from 6.7% at the linked quarter end as earnings net of dividends increased our capital coupled with a slight recovery in our accumulated other comprehensive loss. We grew our book value per share and tangible book value per share by 15% and 28%, respectively, on an annualized basis compared to year-end.

我們的有形權益與有形資產的比率從相關季度末的 6.7% 提高到 7.1%，因為扣除股息後的收益增加了我們的資本，加上我們累積的其他綜合虧損略有恢復。與年底相比，我們的每股賬面價值和每股有形賬面價值分別增長了 15% 和 28%。

Earlier this morning, we announced a $0.01 increase to our quarterly dividend. We remain focused on providing a quality return for our shareholders and have increased our dividend for 8 consecutive years.

今天早上早些時候，我們宣布將季度股息增加 0.01 美元。我們始終專注於為股東提供優質回報，並已連續 8 年增加股息。

I will now turn the call back to Chuck for additional comments.

我現在將把電話轉回給查克以徵求更多意見。

Thank you, Katie.

謝謝你，凱蒂。

We had another strong quarter and continue to look forward to our future. At the same time, we are working to assess our readiness to cross the $10 billion asset threshold. We are in no hurry to cross the threshold. However, we want to be prepared as soon as possible so that we do not restrict ourselves from seizing opportunities that could be beneficial for our future success. With this in mind, we have engaged a third-party accounting and consulting firm to assist with our analysis and preparation process.

我們有另一個強勁的季度，並繼續期待我們的未來。與此同時，我們正在努力評估我們是否準備好跨越 100 億美元的資產門檻。我們並不急於跨過門檻。但是，我們希望盡快做好準備，這樣我們就不會限制自己抓住可能對我們未來的成功有益的機會。考慮到這一點，我們聘請了第三方會計和諮詢公司來協助我們進行分析和準備過程。

As far as our merger with Limestone, we are on track as far as timing, and we expect to hit our internal metrics on projected cost savings. We have received regulatory approval and the plan to close the merger as of the close of business on April 30. We have a separate conversion date in the third quarter for our core processor and they're coordinating our processes and those of Limestone between the close and conversion dates with our operations teams.

就我們與 Limestone 的合併而言，我們在時間安排上走上了正軌，我們希望達到有關預計成本節省的內部指標。我們已獲得監管部門的批准，併計劃在 4 月 30 日營業結束時完成合併。我們的核心處理器在第三季度有一個單獨的轉換日期，他們正在協調我們的流程和 Limestone 在收盤之間的流程和我們的運營團隊的轉換日期。

For months, we have been engaging with the clients and communities served by Limestone. We are actively ensuring our full suite of products will be available in the Limestone markets including indirect lending, mortgage, dealer floor plan, insurance, trust and specialty finance opportunities. We are optimistic about our combined future and we are excited about the talent we are picking up in the merger.

幾個月來，我們一直在與 Limestone 服務的客戶和社區進行接觸。我們正在積極確保我們的全套產品將在石灰石市場上市，包括間接貸款、抵押貸款、經銷商平面圖、保險、信託和專業融資機會。我們對我們合併後的未來感到樂觀，我們對我們在合併中獲得的人才感到興奮。

We want to finish up with our guidance for the remainder of 2023. These projections include the impact of the pending Limestone merger, but exclude acquisition-related expenses. During the rest of 2023, we expect our net interest income to continue to grow due to the impact of the Limestone merger as well as the full year benefits of higher market interest rates as our loans repriced to the newest rate. As we noted during our last call, we expect net interest margin expansion to slow throughout the year as we continue to increase our funding costs. With those items in mind, we believe that net interest margin for 2023 will be between 4.4% and 4.6%, which assumes relatively flat market interest rates for 2023 as compared to year-end 2022. However, the second quarter might come in below this range given the merger closing and our related purchase accounting adjustments, but we expect the full year margin will be within this range.

我們希望完成對 2023 年剩餘時間的指導。這些預測包括即將進行的 Limestone 合併的影響，但不包括與收購相關的費用。在 2023 年剩餘時間裡，我們預計我們的淨利息收入將繼續增長，這是由於 Limestone 合併的影響，以及隨著我們的貸款重新定價為最新利率而帶來的更高市場利率的全年收益。正如我們在上次電話會議中指出的那樣，隨著我們繼續增加融資成本，我們預計全年淨息差擴張將放緩。考慮到這些因素，我們認為 2023 年的淨息差將在 4.4% 至 4.6% 之間，這是假設 2023 年的市場利率與 2022 年底相比相對持平。但是，第二季度可能會低於這個水平考慮到合併完成和我們相關的採購會計調整，我們預計全年利潤率將在此範圍內。

We anticipate loan growth of between 25% and 30%, including the new Limestone balances, while we believe our annual organic growth -- while only 15% come from [RV] between 5% and 7%. We expect fee-based income percentage growth to be in the low double digits compared to 2022, which includes the impact of the pending Limestone merger. We are anticipating a 21% increase in our total noninterest expenses for 2023 excluding acquisition-related expenses compared to the full year of 2022, assuming we achieve our anticipated cost savings for the merger.

我們預計貸款增長 25% 至 30%，包括新的 Limestone 餘額，同時我們相信我們的年度有機增長——而只有 15% 來自 [RV] 5% 至 7%。我們預計與 2022 年相比，基於費用的收入百分比增長率將處於較低的兩位數，其中包括未決的 Limestone 合併的影響。假設我們實現了合併的預期成本節省，我們預計與 2022 年全年相比，我們 2023 年的非利息支出總額（不包括收購相關支出）將增加 21%。

Since our closing conversion dates are separate for the Limestone merger, we believe we will incur acquisition-related expenses during the second quarter of between $9 million and $10 million, with another $4 million to $5 million during the third quarter. We will also record a provision for credit losses during the second quarter to establish the allowance for credit losses for the acquired nonpurchase credit deteriorated loans from Limestone. We estimate that the provision for credit losses we will record will be between $11 million to $13 million. However, there are many moving pieces and this number is subject to change.

由於 Limestone 合併的結束轉換日期不同，我們認為我們將在第二季度產生 900 萬至 1000 萬美元的收購相關費用，第三季度將產生另外 400 萬至 500 萬美元的費用。我們還將在第二季度記錄信用損失準備金，以確定從 Limestone 收購的非購買信用惡化貸款的信用損失準備金。我們估計我們將記錄的信貸損失準備金將在 1100 萬美元至 1300 萬美元之間。然而，有許多移動件，這個數字可能會發生變化。

We expect our efficiency ratio, excluding onetime expenses to be between 55% and 57% for the full year, including the impact of the addition of Limestone. We believe we will have an increase of about 5 basis points in our net charge-off rate during 2023 compared to 2022.

我們預計全年的效率比（不包括一次性費用）在 55% 至 57% 之間，包括添加石灰石的影響。我們相信，與 2022 年相比，2023 年我們的淨沖銷率將增加約 5 個基點。

As far as bank performance, we understand that analysts are cutting earnings projections for institutions across the board, but we do not believe this to be an accurate indicator for investors of Peoples. We recommend that analysts look at each bank individually and inform the market based on their analysis. Specifically, across the board moves, shortchange the quality of our deposit book and the strength of our margin. We remain comfortable with our original 2023 estimates. From our perspective, we believe our deposits, loan growth, earnings trajectory and the impact of Limestone merger make it likely that we will grow earnings between 18% and 19% in 2023.

就銀行業績而言，我們了解到分析師正在全面下調機構的盈利預測，但我們認為這對於 Peoples 的投資者而言並不是一個準確的指標。我們建議分析師分別查看每家銀行，並根據他們的分析告知市場。具體來說，全面的舉措會降低我們存款簿的質量和我們的保證金實力。我們對最初的 2023 年估計保持滿意。從我們的角度來看，我們認為我們的存款、貸款增長、盈利軌跡以及 Limestone 合併的影響使我們有可能在 2023 年實現 18% 至 19% 的盈利增長。

This concludes our commentary, and we will open the call for questions. Once again, this is Chuck Sulerzyski and joining me for the Q&A session is Katie Bailey, our Chief Financial Officer.

我們的評論到此結束，我們將開始提問。我是 Chuck Sulerzyski，和我一起參加問答環節的是我們的首席財務官 Katie Bailey。

I will now turn the call back into the hands of our call facilitator, Kate. Thank you.

我現在將把電話交還給我們的電話協調員 Kate。謝謝。

(Operator Instructions) Our first question is from Brendan Nosal of Piper Sandler.

（操作員說明）我們的第一個問題來自 Piper Sandler 的 Brendan Nosal。

Hope you're doing well. Maybe just to start off on funding costs here. I mean, they remain remarkably benign for you folks over the course of this tightening cycle. I'm just curious, given all of the changes for the bank space over the past few months, is there a point at which there's a larger catch-up just kind of given where the yield curve is versus your current funding costs and then also the need to maybe more actively maintain deposit balances?

希望你做得很好。也許只是從這裡的資金成本開始。我的意思是，在這個緊縮週期的過程中，它們對你們來說仍然非常有益。我很好奇，考慮到過去幾個月銀行空間的所有變化，是否存在一個更大的追趕點，只是考慮到收益率曲線與當前融資成本的關係，然後還有是否需要更積極地維持存款餘額？

Nothing crazy, nothing more than what you've seen already. I might think the difference between this quarter and last quarter, I think you might expect that going forward, but nothing, nothing more severe than that. And again, I think it's a testament to the markets that we serve. We're in a lot of places that a lot of people have left -- large competitors.

沒什麼瘋狂的，只不過是你已經看到的。我可能認為本季度和上一季度之間的差異，我想你可能會期待未來的發展，但沒有比這更嚴重的了。再一次，我認為這證明了我們所服務的市場。我們在很多人已經離開的地方——大型競爭對手。

Yes. Yes. Okay. Perhaps one more for me. You folks mentioned getting prepared internally for $10 billion in assets. And I was just kind of wondering what that process looks like in terms of your appetite for M&A in the near term, whether that kind of pushes out a desire to do deals as you get ready internally?

是的。是的。好的。也許對我來說還有一個。你們提到要在內部為 100 億美元的資產做好準備。我只是想知道，就您近期對併購的興趣而言，這個過程是什麼樣子的，這種情況是否會在您內部做好準備時激發進行交易的願望？

Well, the process review -- to answer the first part of the question, what that process looks like. It's a comprehensive review of all of our processes as it relates to compliance, credit, accounting, operations, systems, et cetera. As far as our appetite for M&A in the short term, we'd like to get Limestone closed this week and converted in August and make sure that's up and sailing. We're in, as I said, no hurry to cross $10 billion. But we don't want to leave -- we don't want to be left not able to take advantage of a situation that should something that we view as strategically important come along. So if we could pick it, we'd cross $10 billion a couple of years out, but we may not have that ability to pick it.

那麼，流程審查——回答問題的第一部分，流程是什麼樣的。這是對我們所有流程的全面審查，因為它涉及合規、信用、會計、運營、系統等。就我們短期內對併購的興趣而言，我們希望本週關閉 Limestone 並在 8 月進行轉換，並確保其順利進行。正如我所說，我們並不急於突破 100 億美元。但我們不想離開——我們不想在我們認為具有戰略重要性的事情出現時無法利用這種情況。因此，如果我們能夠選擇它，我們將在幾年後超過 100 億美元，但我們可能沒有能力選擇它。

The next question is from Daniel Tamayo of Raymond James.

下一個問題來自 Raymond James 的 Daniel Tamayo。

Maybe first, just following up on the funding discussion. Just curious kind of how you're thinking about the interplay between -- when you are using the wholesale funding, if it's brokered CDs, if it's FHLB, how you're thinking about that? And then how far out you're going in terms of maturities with those fundings?

也許首先，只是跟進資金討論。只是好奇你是如何考慮兩者之間的相互作用的——當你使用批發資金時，如果它是經紀 CD，如果它是 FHLB，你是如何考慮的？然後，就這些資金的到期日而言，您要走多遠？

Sure. So as you saw in the results for the first quarter relative to the fourth quarter, we did access the brokered CD market as that pricing was advantageous compared to what our primary source historically and continues to be the FHLB for our overnight funding needs. So we did use the brokered. And they're generally going -- we're going out 3 to 6 months on the brokered side. So not roll long given the current expectations on the rates.

當然。因此，正如您在第一季度相對於第四季度的結果中看到的那樣，我們確實進入了經紀 CD 市場，因為與我們歷史上的主要來源相比，該定價具有優勢，並且仍然是我們隔夜融資需求的 FHLB。所以我們確實使用了代理。他們通常會去——我們會在經紀人方面出去 3 到 6 個月。因此，考慮到目前對利率的預期，不要做多。

Understood. That makes sense. And then my follow-up is around Limestone. I saw the release this morning. I didn't see anything on the office exposure. I was just curious if you had a sense for how much Limestone would add to the $107 million you mentioned in terms of overall office and if that's mostly Louisville?

明白了。這就說得通了。然後我的後續行動是圍繞石灰石。我今天早上看到了發布。我在辦公室曝光時沒有看到任何東西。我只是想知道您是否知道石灰石會為您提到的 1.07 億美元的整體辦公室增加多少，如果那主要是路易斯維爾？

Yes, they have a little bit more heavy weighting in office than we do. If you give me a minute or 2, we'll come up with a number for you. But yes, on the geography question, it's more (inaudible). So they have $51 million extra in office that we have more in Central Kentucky, Louisville, Lexington focused.

是的，他們在辦公室的權重比我們高一點。如果你給我一兩分鐘，我們會為你想出一個數字。但是，是的，在地理問題上，它更多（聽不清）。因此，他們在辦公室有 5100 萬美元的額外資金，而我們在肯塔基州中部、路易斯維爾和列剋星敦的資金更多。

The next question is from Terry McEvoy of Stephens.

下一個問題來自 Stephens 的 Terry McEvoy。

This is (inaudible) on for Terry. My first question here, can you just kind of talk about your thoughts on the noninterest-bearing deposit flow and where those could bottom as a percent of total deposits?

這是特里的（聽不清）。我的第一個問題是，你能談談你對無息存款流量的看法，以及這些存款佔總存款的百分比可能會觸底嗎？

I think the trend that we've seen in terms of a percent or so deterioration a quarter, not quite a percent. If you look at since the beginning of the rate rises, I think that, that continuing for a little bit is likely. But I don't think you're going to see massive changes in the ratio between the interest-bearing and noninterest-bearing DDA. Those are pretty stable long-term customers.

我認為我們所看到的趨勢是每季度惡化一個百分比左右，而不是一個百分比。如果你看看自加息開始以來，我認為這種情況可能會持續一點點。但我不認為你會看到生息和非生息 DDA 之間的比率發生巨大變化。這些都是相當穩定的長期客戶。

Okay. Perfect. And one, I think in your NIM guide, you said $440 million to $460 million for the year but 2Q coming in lower than that? I guess there's some movement with the merger. But do you think on a core base or on a stand-alone Peoples basis, the margin has peaked? Or is there further room for expansion there?

好的。完美的。還有一個，我想在你的 NIM 指南中，你說今年是 4.4 億到 4.6 億美元，但第二季度會低於這個數字嗎？我想合併有一些進展。但是你認為在核心基礎上還是在獨立的人民基礎上，利潤率已經達到頂峰？或者那裡還有進一步擴展的空間嗎？

I think it's about where it's going to get to -- if you take the noise out with the acquisition.

我認為這是關於它將到達的位置——如果你通過收購消除噪音。

Okay. Just one on credit. Could the criticized loan increase, I think, in the release has said C&I. Do you have any specifics on which -- in industries those credits were in?

好的。只有一個賒賬。受批評的貸款能否增加，我認為，在發布中已經提到了 C&I。您是否有任何具體信息 - 這些學分屬於哪些行業？

It was in dealer floor plan.

它在經銷商平面圖中。

Okay. And sorry, just one last one. So the decision to restructure the securities portfolio, what point in the quarter was that there was a -- was mid-March the catalyst for that? Or is that prior to the events?

好的。抱歉，只有最後一個。因此，重組證券投資組合的決定，在本季度的什麼時候是 - 3 月中旬是催化劑嗎？或者是在事件發生之前？

Yes. It was prior to all of that, actually. There was a piece of it done in mid- to late February and then a piece was done very early in March.

是的。實際上，它先於所有這些。其中一部分在二月中下旬完成，然後在三月初完成了一部分。

(Operator Instructions) The next question comes from Manuel Navas of D.A. Davidson.

（操作員說明）下一個問題來自 D.A. 的 Manuel Navas。戴維森。

How should we think about kind of deposit growth on a core basis for the year? What are kind of some of the puts and takes there?

我們應該如何考慮今年核心基礎上的存款增長？那裡有哪些 puts 和 takes？

I think there's some seasonality in our deposits, some flows with public funds. I think at 82% loan-to-deposit ratio, I think that we have a fair amount of room. We don't need to price more aggressively than we're pricing. So I expect minimal deposit growth outside of the Limestone acquisition, and I think that, that will help us from a margin perspective.

我認為我們的存款有一些季節性，有些是通過公共資金流動的。我認為在 82% 的貸存比率下，我認為我們有相當大的空間。我們不需要比我們的定價更激進的定價。因此，我預計在收購 Limestone 之外的存款增長極小，而且我認為，從利潤率的角度來看，這將對我們有所幫助。

And I would say there will likely continue to be a mix shift within the portfolio, as you've seen in the last few quarters out of kind of the lower-cost deposits into more of the CDs. And when I say CDs, I'm taking retail kind of CDs, customer CDs. We'll continue to look at the brokered market as a funding source. And I know that rolls up into deposits, but that's viewed more as funding than kind of customer deposits per se.

我想說的是，投資組合中可能會繼續發生混合轉變，正如你在過去幾個季度看到的那樣，從低成本存款轉向更多 CD。當我說 CD 時，我指的是零售類 CD，客戶 CD。我們將繼續將經紀市場視為一種資金來源。而且我知道這會累積成存款，但這更多地被視為資金而不是客戶存款本身。

I appreciate that. Kind of bigger picture, what kind of shifts in your thinking if a recession hits like a second half of the year in terms of some of your guidance? And that to be sort of (inaudible) where are some of the opportunities where your guidance could be almost conservative?

我很感激。從更大的角度來看，如果經濟衰退像今年下半年那樣在您的一些指導方面發生，您的想法會有什麼樣的轉變？那就是（聽不清）您的指導可能幾乎是保守的一些機會在哪裡？

So which knife do you want us to slit off throat with. Okay. I don't see a recession. We don't have a great deal of optimism on the economy baked into those numbers. We're in markets that don't grow. Our proposition is very simple. The only way we can grow is to take business away from the competition. That doesn't change in good times or bad times. So in some ways, it's a little recession. It's independent of any recession.

那麼你想讓我們用哪把刀割斷喉嚨。好的。我沒有看到經濟衰退。我們對這些數字中包含的經濟並不十分樂觀。我們所處的市場不會增長。我們的提議很簡單。我們成長的唯一途徑是讓業務遠離競爭。這在順境或逆境中都不會改變。所以在某些方面，這是一個小衰退。它獨立於任何衰退。

What I would say is that the leasing businesses that we have may do a little better in harder times than the core business. So that will help offset any flows but we don't have a lot of great growth in there in terms of -- based off of the economy. Does that help you?

我要說的是，我們擁有的租賃業務在困難時期可能比核心業務做得更好。因此，這將有助於抵消任何流量，但就經濟而言，我們沒有太多的增長。這對你有幫助嗎？

Yes. That helps. That I feel like color. I think we've kind of covered most other things. I really appreciate the color.

是的。這有幫助。我覺得像顏色。我認為我們已經涵蓋了大多數其他內容。我真的很欣賞這種顏色。

The next question is a follow-up from Brendan Nosal of Piper Sandler.

下一個問題是 Piper Sandler 的 Brendan Nosal 的後續問題。

Just one more for me. Thank you for the commentary on the margins just in terms of kind of where the 2Q lands versus the full year guide. I guess looking beyond that, does the margin move back up in the third quarter given the 2Q pressure is on kind of purchase accounting noise? Or is that just a reset lower that kind of carries through the rest of the year?

再給我一個。感謝您就 2Q 與全年指南的對比情況對利潤率的評論。我想除此之外，考慮到第二季度的壓力來自某種採購會計噪音，利潤率是否會在第三季度回升？或者這只是今年餘下時間的低位重置？

No, it resets higher. And what we're just giving heads up to in the second quarter is, as you're well aware, we go through day 1 valuation and they'll be preliminary at [$630 million] that we're using to record off of, and there'll be likely true-ups that happened in the third quarter. So there will be some noise in mostly the accretion income that is recorded in each of those periods. So that's why we're -- there's a potential that Q2 might be lower than the guidance, and then it will bounce back in that range in the third and fourth quarter.

不，它重置得更高。正如你所知，我們在第二季度剛剛提出的是，我們進行了第一天的估值，初步估值為 [6.3 億美元]，我們用它來記錄，第三季度可能會出現調整。因此，在每個時期記錄的大部分增值收入中都會有一些噪音。所以這就是為什麼我們 - 第二季度有可能低於指導，然後它會在第三和第四季度反彈到該範圍內。

Got it. But it sounds like all of that noise will be purchase accounting and not the core margin, correct?

知道了。但聽起來所有這些噪音都是採購會計而不是核心利潤率，對嗎？

Correct. And we'll disclose it as we always do.

正確的。我們會一如既往地披露它。

At this time, there are no further questions. Sir, do you have any closing remarks?

目前，沒有進一步的問題。先生，您有什麼結束語嗎？

Yes. I'd like to thank everyone for joining our call this morning. Please remember that our earnings release and a webcast of this call will be archived at peoplesbancorp.com under the Investor Relations section.

是的。我要感謝大家今天早上加入我們的電話會議。請記住，我們的收益發布和本次電話會議的網絡廣播將在 peoplesbancorp.com 的“投資者關係”部分下存檔。

Thank you for your time, and have a great day.

謝謝你的時間，祝你有美好的一天。

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

會議現已結束。感謝您參加今天的演講。您現在可以斷開連接。