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Peoples Bancorp Inc (Marietta OH) (PEBO) Q4 2024 Earnings Call Highlights: Strong Fee-Based ...

In This Article:

  • Diluted Earnings Per Share (EPS): $0.76 for Q4 2024; $3.31 for the full year 2024.

  • Net Interest Income: Increased 3% year-over-year; declined 3% compared to the linked quarter.

  • Net Interest Margin: 4.21% for the year; 4.15% for Q4 2024.

  • Fee-Based Income: Grew 10% year-over-year; 5% increase compared to the linked quarter.

  • Efficiency Ratio: 58% for the year; 59.6% for Q4 2024.

  • Book Value Per Share: Improved 5% to $31.26.

  • Tangible Book Value Per Share: Grew 10% to $19.94.

  • Loan-to-Deposit Ratio: Declined to 84% from 86% in 2023.

  • Deposit Balance Growth: $443 million or 6% increase compared to 2023.

  • Tangible Equity to Tangible Assets Ratio: Improved to 8.01% at year-end.

  • Allowance for Credit Losses: 1% of total loans.

  • Net Charge-Off Rate: 61 basis points for Q4 2024; 37 basis points for the full year 2024.

  • Non-Performing Assets: Declined $21 million; 0.53% of total assets at year-end.

  • Commercial and Industrial Loans: Increased $163 million; grew from 19% to 21% of the portfolio.

  • Commercial Real Estate Loans: Declined from 36% to 34% of the portfolio.

  • Dividend Yield: 5.11%.

Release Date: January 21, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Peoples Bancorp Inc (Marietta OH) (NASDAQ:PEBO) reported a 3% improvement in net interest income compared to 2023, with a net interest margin of 4.21%, outperforming most in the industry.

  • Fee-based income grew by 10% year-over-year, driven by higher commercial loan swap fees and improved lease, trust, investment, and insurance income.

  • The company experienced a favorable shift in its loan portfolio mix, with Commercial and Industrial Loans increasing by $163 million, demonstrating stability in its Commercial Loan portfolio.

  • Deposit balances grew by $443 million or 6% compared to 2023, with a tangible equity to tangible assets ratio improving to 8.01% at year-end.

  • Peoples Bancorp Inc (Marietta OH) (NASDAQ:PEBO) continues to be recognized as a top employer, contributing to community engagement and maintaining a strong market presence.

Negative Points

  • Net interest income declined by 3% in the fourth quarter compared to the linked quarter, driven by lower accretion income.

  • The net charge-off rate for the full year increased to 37 basis points from 15 basis points in 2023, primarily due to elevated charge-offs in the small ticket leasing business.

  • The company's provision for credit losses declined in the fourth quarter, but the annualized net charge-off rate was 61 basis points, up from 38 basis points in the linked quarter.

  • Non-interest expenses increased by 7% compared to the linked quarter, driven by higher non-core expenses and reductions in corporate expense recognized last quarter.

  • The efficiency ratio for the fourth quarter increased to 59.6% from 55.1% in the linked quarter, due to lower net interest income and increased non-interest expense.