Peoples Bancorp Inc (Marietta OH) (PEBO) Q1 2025 Earnings Call Highlights: Strong Loan Growth ...

In This Article:

  • Diluted Earnings Per Share: $0.68 for the first quarter.

  • Annualized Loan Growth: Over 4%.

  • Deposit Balances Growth: 2% increase.

  • Core Deposit Growth: Over 3%.

  • Book Value Per Share: Grew 2% to $31.90.

  • Tangible Book Value Per Share: Improved 4% to $20.68.

  • Tangible Equity to Tangible Assets Ratio: Improved to 8.34% from 8.01% at year-end.

  • Net Interest Income: Down 1% compared to the linked quarter.

  • Net Interest Margin: Down 3 basis points, but expanded 3 basis points on a core basis.

  • Fee-Based Income Growth: Over 2% increase.

  • Non-Interest Expense: Increased slightly due to one-time expenses.

  • Annualized Net Charge-Off Rate: Declined to 52 basis points from 61 basis points in the fourth quarter.

  • Non-Performing Assets: Decreased over $3 million, representing 50 basis points of total assets.

  • Allowance for Credit Losses: Grew nearly $2 million to 1.01% of total loans.

  • Provision for Credit Losses: Increased nearly $4 million compared to the linked quarter.

  • Quarterly Dividend: Increased for the 10th consecutive year to $0.41 per share.

  • Efficiency Ratio: 60.7%, up from 59.6% in the linked quarter.

  • Loan-to-Deposit Ratio: 83%, consistent with year-end.

  • Investment Portfolio: Declined $40 million, representing 20.3% of total assets.

  • Deposit Composition: 76% retail deposit balances, 24% commercial deposit balances.

  • Regulatory Capital Ratios: Improved compared to year-end.

Release Date: April 22, 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 4% annualized loan growth for the first quarter, aligning with their 2025 guidance.

  • The company saw improvements in asset quality metrics, including reductions in net charge-off rate, non-performing assets, and criticized and classified loans.

  • Deposit balances grew by 2%, driven by higher money market and governmental deposit account balances, with a reduction in brokered CDs.

  • The tangible equity to tangible assets ratio improved to 8.34% at the end of the first quarter, up from 8.01% at year-end.

  • Peoples Bancorp Inc (Marietta OH) (NASDAQ:PEBO) announced an increase in their quarterly dividend for the 10th consecutive year, reflecting strong shareholder returns.

Negative Points

  • Net interest income declined by 1% compared to the linked quarter, and net interest margin decreased by 3 basis points.

  • The company experienced a slight increase in non-interest expenses due to one-time costs related to stock-based compensation and employer health savings account contributions.

  • The provision for credit losses increased by nearly $4 million compared to the linked quarter, driven by net charge-offs.

  • Fee-based income growth was modest at 2%, with declines in commercial loan swap fees, deposit account service charges, and electronic banking income.

  • The small ticket leasing business continued to drive net charge-offs, although there was a decline compared to the previous quarter.