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PEOPLES BANCORP INC. ANNOUNCES SECOND QUARTER 2025 RESULTS

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Peoples Bancorp (NASDAQ: PEBO) reported Q2 2025 net income of $21.2 million, or $0.59 per diluted share, down from $24.3 million ($0.68/share) in Q1 2025 and $29.0 million ($0.82/share) in Q2 2024.

Key highlights include net interest margin expansion to 4.15% and strong annualized loan growth of 11%. The bank recorded a provision for credit losses of $16.6 million, up from $10.2 million in Q1 2025, primarily due to net charge-offs, increased reserves, and loan growth. The efficiency ratio improved to 59.3% from 60.7% in the previous quarter.

Period-end total loan balances increased by $173.1 million, while deposits decreased by $97.5 million. Asset quality metrics remained relatively stable with 99.1% of loans current, though criticized loans increased by $17.9 million.

Peoples Bancorp (NASDAQ: PEBO) ha riportato un utile netto nel secondo trimestre 2025 di 21,2 milioni di dollari, pari a 0,59 dollari per azione diluita, in calo rispetto ai 24,3 milioni di dollari (0,68 dollari per azione) del primo trimestre 2025 e ai 29,0 milioni di dollari (0,82 dollari per azione) del secondo trimestre 2024.

I punti salienti includono un margine di interesse netto in espansione al 4,15% e una solida crescita annualizzata dei prestiti dell'11%. La banca ha registrato una accantonamento per perdite su crediti di 16,6 milioni di dollari, in aumento rispetto ai 10,2 milioni del primo trimestre 2025, principalmente a causa di svalutazioni nette, maggiori riserve e crescita dei prestiti. Il rapporto di efficienza è migliorato al 59,3% rispetto al 60,7% del trimestre precedente.

Il saldo totale dei prestiti a fine periodo è aumentato di 173,1 milioni di dollari, mentre i depositi sono diminuiti di 97,5 milioni di dollari. Gli indicatori di qualità degli attivi sono rimasti relativamente stabili con il 99,1% dei prestiti correnti, sebbene i prestiti criticati siano aumentati di 17,9 milioni di dollari.

Peoples Bancorp (NASDAQ: PEBO) reportó un ingreso neto en el segundo trimestre de 2025 de 21,2 millones de dólares, o 0,59 dólares por acción diluida, una disminución respecto a los 24,3 millones (0,68 dólares/acción) del primer trimestre de 2025 y los 29,0 millones (0,82 dólares/acción) del segundo trimestre de 2024.

Los aspectos destacados incluyen una expansión del margen de interés neto al 4,15% y un sólido crecimiento anualizado de préstamos del 11%. El banco registró una provisión para pérdidas crediticias de 16,6 millones de dólares, superior a los 10,2 millones del primer trimestre de 2025, principalmente debido a cargos netos, aumentos en reservas y crecimiento en préstamos. La ratio de eficiencia mejoró a 59,3% desde el 60,7% del trimestre anterior.

El saldo total de préstamos al final del período aumentó en 173,1 millones de dólares, mientras que los depósitos disminuyeron en 97,5 millones. Los indicadores de calidad de activos se mantuvieron relativamente estables con un 99,1% de préstamos al corriente, aunque los préstamos criticados aumentaron en 17,9 millones de dólares.

Peoples Bancorp (NASDAQ: PEBO)는 2025년 2분기 순이익으로 2,120만 달러, 희석 주당 0.59달러를 보고했으며, 이는 2025년 1분기의 2,430만 달러(주당 0.68달러) 및 2024년 2분기의 2,900만 달러(주당 0.82달러)보다 감소한 수치입니다.

주요 내용으로는 순이자마진이 4.15%로 확대되고 연환산 대출 성장률이 11%로 강세를 보였습니다. 은행은 대손충당금 1,660만 달러를 기록했으며, 이는 2025년 1분기의 1,020만 달러에서 증가한 것으로, 주로 순대손상실, 충당금 증가 및 대출 증가 때문입니다. 효율성 비율은 이전 분기의 60.7%에서 59.3%로 개선되었습니다.

기간 말 총 대출 잔액은 1억 7,310만 달러 증가했으나, 예금은 9,750만 달러 감소했습니다. 자산 품질 지표는 대출의 99.1%가 정상 상태를 유지하며 비교적 안정적이었으나, 문제 대출은 1,790만 달러 증가했습니다.

Peoples Bancorp (NASDAQ: PEBO) a annoncé un bénéfice net de 21,2 millions de dollars au deuxième trimestre 2025, soit 0,59 dollar par action diluée, en baisse par rapport à 24,3 millions de dollars (0,68 dollar/action) au premier trimestre 2025 et 29,0 millions de dollars (0,82 dollar/action) au deuxième trimestre 2024.

Les points clés incluent une amélioration de la marge d'intérêt nette à 4,15% et une forte croissance annualisée des prêts de 11%. La banque a enregistré une provision pour pertes sur crédits de 16,6 millions de dollars, en hausse par rapport à 10,2 millions au premier trimestre 2025, principalement en raison des pertes nettes, de l'augmentation des réserves et de la croissance des prêts. Le ratio d'efficacité s'est amélioré à 59,3% contre 60,7% au trimestre précédent.

Le solde total des prêts à la fin de la période a augmenté de 173,1 millions de dollars, tandis que les dépôts ont diminué de 97,5 millions. Les indicateurs de qualité des actifs sont restés relativement stables avec 99,1% des prêts en cours, bien que les prêts critiqués aient augmenté de 17,9 millions de dollars.

Peoples Bancorp (NASDAQ: PEBO) meldete für das zweite Quartal 2025 einen Nettogewinn von 21,2 Millionen US-Dollar, bzw. 0,59 US-Dollar je verwässerter Aktie, was einen Rückgang gegenüber 24,3 Millionen US-Dollar (0,68 US-Dollar/Aktie) im ersten Quartal 2025 und 29,0 Millionen US-Dollar (0,82 US-Dollar/Aktie) im zweiten Quartal 2024 darstellt.

Wesentliche Highlights sind unter anderem die Ausweitung der Nettozinsmarge auf 4,15% sowie ein starkes annualisiertes Kreditwachstum von 11%. Die Bank verzeichnete eine Rückstellung für Kreditausfälle in Höhe von 16,6 Millionen US-Dollar, was gegenüber 10,2 Millionen US-Dollar im ersten Quartal 2025 gestiegen ist, hauptsächlich bedingt durch Nettoabschreibungen, erhöhte Rücklagen und Kreditwachstum. Die Effizienzquote verbesserte sich auf 59,3% von 60,7% im Vorquartal.

Die Gesamtkreditbestände zum Periodenende stiegen um 173,1 Millionen US-Dollar, während die Einlagen um 97,5 Millionen US-Dollar zurückgingen. Die Vermögensqualität blieb mit 99,1% aktueller Kredite relativ stabil, obwohl die kritisierten Kredite um 17,9 Millionen US-Dollar zunahmen.

Positive
  • Net interest margin expanded to 4.15% from 4.12% in Q1 2025
  • Strong 11% annualized loan growth of $173.1 million
  • Efficiency ratio improved to 59.3% from 60.7% in Q1 2025
  • 99.1% of loan portfolio considered current, showing strong asset quality
  • Net interest income increased $2.3 million (3%) compared to previous quarter
Negative
  • Net income declined to $21.2 million from $29.0 million in Q2 2024
  • Provision for credit losses increased significantly to $16.6 million from $10.2 million in Q1
  • Criticized loans increased $17.9 million due to downgrade of commercial relationship
  • Period-end deposits decreased $97.5 million (1%)
  • EPS declined to $0.59 from $0.82 year-over-year

Insights

PEBO's Q2 shows mixed results with loan growth and margin expansion offset by higher credit loss provisions and declining earnings.

Peoples Bancorp (PEBO) reported Q2 2025 earnings of $21.2 million or $0.59 per diluted share, marking a sequential decline from Q1's $0.68 and a significant year-over-year drop from Q2 2024's $0.82 per share. This 28% year-over-year EPS decline warrants attention.

On the positive side, the bank achieved strong loan growth of $173.1 million, representing an impressive 11% annualized growth rate, primarily in commercial/industrial and residential real estate segments. Net interest margin also improved to 4.15% from 4.12% in the linked quarter, driven by lower funding costs.

However, the substantial increase in provision for credit losses to $16.6 million (vs. $10.2 million in Q1 and $5.7 million in Q2 2024) significantly impacted profitability. This provision reduced EPS by $0.36 alone. The higher provisioning stems from multiple factors including net charge-offs, increased reserves for individually-analyzed loans, and a deteriorating economic forecast - potential early warning signs of credit quality challenges.

Asset quality metrics show some concerning trends: criticized loans increased $17.9 million (18 basis points as a percentage of total loans), primarily due to one downgraded commercial relationship. This warrants monitoring for potential systemic issues versus an isolated case.

The efficiency ratio improved slightly to 59.3% from 60.7% quarter-over-quarter but worsened year-over-year. Deposits decreased $97.5 million or 1%, pushing the loan-to-deposit ratio to 86% from 83% previously, which could create future funding pressure if the trend continues.

The quarter reflects a bank successfully growing its loan book while maintaining margin in a challenging environment, but facing increasing credit costs that are substantially impacting bottom-line performance.

MARIETTA, Ohio, July 22, 2025 /PRNewswire/ -- Peoples Bancorp Inc. ("Peoples") (NASDAQ: PEBO) today announced results for the quarter ended June 30, 2025. Net income totaled $21.2 million for the second quarter of 2025, representing earnings per diluted common share of $0.59. In comparison, Peoples reported net income of $24.3 million, representing earnings per diluted common share of $0.68, for the first quarter of 2025 and net income of $29.0 million, representing earnings per diluted common share of $0.82, for the second quarter of 2024.

"We are pleased with strong annualized loan growth and net interest margin expansion in the second quarter" said Tyler Wilcox, President and Chief Executive Officer. "For our shareholders, we remain focused on driving sustainable growth and delivering strong returns." 

Statement of Operations Summary:

  • Net interest income for the second quarter of 2025 increased $2.3 million, or 3%, when compared to the linked quarter driven by lower funding costs.
    • Net interest margin increased to 4.15% for the second quarter of 2025, compared to 4.12% for the linked quarter, driven by lower deposit and borrowing costs.
    • Accretion income, net of amortization expense, contributed 12 basis points to margin for the second quarter, down 5 basis points from the 17 basis points of accretion income, net of amortization expense, recognized in the linked quarter.
  • Peoples recorded a provision for credit losses of $16.6 million for the second quarter of 2025, compared to a provision for credit losses of $10.2 million for the first quarter of 2025.
    • The provision for credit losses was primarily driven by (i) net charge offs, (ii) an increase in reserves on individually-analyzed loans and leases, (iii) an increase in reserves for leases originated by our North Star Leasing division, (iv) a periodic refresh in loss drivers utilized within the current expected credit loss ("CECL") model, (v) deterioration in the economic forecasts used within the CECL model, and (vi) loan growth. The provision for credit losses negatively impacted earnings per diluted common share by $0.36 for the second quarter of 2025 and $0.22 for the first quarter of 2025.
  • Total non-interest income, excluding net gains and losses, decreased $0.3 million, or 1%, for the second quarter of 2025 compared to the linked quarter.
    • The decrease was driven by the decrease in insurance income due to annual seasonal-performance-based commissions received in the first quarter of each year, partially offset by increases in lease income and electronic banking income.
  • Total non-interest expense for the second quarter of 2025 decreased $0.4 million compared to the linked quarter.
    • The decrease was the result of lower salaries and employee benefit costs due to certain anticipated annual employee salaries and benefits costs that occur in the first quarter of each year.
    • The efficiency ratio for the second quarter of 2025 was 59.3%, compared to 60.7% for the linked quarter.

Balance Sheet Summary:

  • Period-end total loan and lease balances at June 30, 2025, increased $173.1 million, or 11% annualized, compared to at March 31, 2025.
    • The increase in loans was driven primarily by growth in commercial and industrial loans and residential real estate loans.
  • Key asset quality metrics remained relatively stable during the second quarter of 2025.
    • Delinquency trends improved compared to the linked quarter as loans considered current comprised 99.1% of the loan portfolio.
    • Criticized loans increased $17.9 million, or 18 basis points as a percent of total loans, compared to at March 31, 2025, primarily driven by the downgrade of one commercial relationship.
    • Classified loans increased $1.2 million compared to at March 31, 2025, driven by loan downgrades.
  • Period-end total deposit balances at June 30, 2025, decreased $97.5 million, or 1%, compared to at March 31, 2025.
    • The decrease in deposits was driven by decreases in governmental deposit accounts, which were driven by seasonality, and decreases in money market deposit accounts.
    • Total loan balances were 86% and 83% of total deposit balances at June 30, 2025, and at March 31, 2025, respectively.

Net Interest Income
Net interest income was $87.6 million for the second quarter of 2025 and increased $2.3 million when compared to the linked quarter. Net interest margin was 4.15% for the second quarter of 2025, compared to 4.12% for the linked quarter. The increase in net interest income and margin was primarily driven by lower deposit and borrowing costs.

Net interest income for the second quarter of 2025 increased $1.0 million, or 1%, compared to the second quarter of 2024.  Net interest margin decreased 3 basis points when compared to the second quarter of 2024. The increase in net interest income was primarily driven by higher loan balances. The decrease of net interest margin was driven by reductions in loan yields, driven by lower accretion income, partially offset by lower funding costs.

Accretion income, net of amortization expense, from acquisitions was $2.6 million for the second quarter of 2025, $3.5 million for the linked quarter and $5.8 million for the second quarter of 2024, which added 12 basis points, 17 basis points and 28 basis points, respectively, to net interest margin. The decrease in accretion income for the second quarter of 2025 when compared to the linked quarter and the second quarter of 2024 was driven by fewer loan payoffs and more accretion recognized in 2024 from the merger with Limestone Bancorp, Inc. ("Limestone Merger").

For the first six months of 2025, net interest income decreased $0.4 million compared to the first six months of 2024, while net interest margin decreased 8 basis points to 4.14%. The decrease in net interest income and net interest margin for the first six months of 2025 compared to the first six months of 2024 was primarily driven by lower accretion income.

Accretion income, net of amortization expense, from acquisitions was $6.1 million for the six months ended June 30, 2025, compared to $12.3 million for the six months ended June 30, 2024, which added 15 and 30 basis points, respectively, to net interest margin. The decrease in accretion income for the first six months of 2025 compared to the same period in 2024 was due to more accretion recognized in 2024 from the Limestone Merger.

Provision for Credit Losses:
The provision for credit losses was $16.6 million for the second quarter of 2025, compared to $10.2 million for the linked quarter and $5.7 million for the second quarter of 2024. The provision for credit losses for the second quarter of 2025 was primarily driven by (i) net charge offs, (ii) an increase in reserves for individually analyzed loans and leases, (iii) an increase in reserves for leases originated by our North Star Leasing division, (iv) a periodic refresh in loss drivers utilized within the CECL model, (v) deterioration in the economic forecasts used within the CECL model, (vi) and loan growth. The provision for the first quarter of 2025 was primarily driven by net charge-offs. The provision for credit losses for the second quarter of 2024 was driven by (i) higher net charge-offs, (ii) an increase of reserves on individually analyzed loans, and (iii) loan growth.

The provision for credit losses during the first six months of 2025 was $26.8 million, compared to a provision for credit losses of $11.8 million for the first six months of 2024. The provision for credit losses during the first six months of 2025 was mainly a result of (i) net charge offs, (ii) an increase in reserves for individually-analyzed loans and leases, (iii) an increase in reserves for leases originated by our North Star Leasing division, (iv) a periodic refresh in loss drivers utilized within the CECL model, (v) deterioration in the economic forecasts used within the CECL model, (vi) and loan growth. The provision for credit losses during the first six months of 2024 was mainly a result of (i) higher net charge-offs, (ii) an increase in reserves on individually analyzed loans and leases and (iii) loan growth. 

The provision for credit losses recorded represents the amount needed to maintain the appropriate level of the allowance for credit losses based on management's quarterly estimates. The provision for credit losses negatively impacted earnings per diluted common share by $0.36 for the second quarter of 2025, $0.22 for the first quarter of 2025, and $0.13 for the second quarter of 2024.

For additional information on net charge-offs, credit trends and the allowance for credit losses, see the "Asset Quality" section below.

Net Gains and Losses:
Net gains and losses include gains and losses on investment securities, asset disposals and other transactions, which are included in total non-interest income on the Consolidated Statements of Income. The net loss for the second quarter of 2025 was $0.3 million, compared to a net loss of $0.4 million for the linked quarter, and a net loss of $0.8 million for the second quarter of 2024. The net losses for both the second quarter of 2025 and the first quarter of 2025 were driven by a $0.3 million loss on repossessed assets in each quarter. The net loss for the second quarter of 2024 was due to $0.4 million of net losses on repossessed assets.

The net loss realized during the first six months of 2025 was $0.6 million, compared to a net loss realized of $1.1 million for the first six months of 2024. The net loss for the first six months of 2025 was primarily driven by the $0.6 million of net losses on repossessed assets. The net loss recognized in the first six months of 2024 was primarily driven by a $0.7 million of net losses on repossessed assets.

Total Non-interest Income, Excluding Net Gains and Losses:
Total non-interest income, excluding net gains and losses, for the second quarter of 2025 decreased $0.3 million compared to the linked quarter. The decrease in non-interest income, excluding net gains and losses, was primarily impacted by a decrease of $1.5 million in insurance income due to seasonal performance-based commissions being received in the first quarter of each year, partially offset by an increase of $0.7 million in lease income, driven by gains on terminated Vantage Financial, LLC ("Vantage") leases, and an increase of $0.4 million in electronic banking income, driven by debit card interchange fees. Total non-interest income, excluding net gains and losses, for the second quarter of 2025 was 24% of total revenue (defined as net interest income plus total non-interest income excluding net gains and losses) consistent with the linked quarter.

Compared to the second quarter of 2024, total non-interest income, excluding net gains and losses, increased $2.7 million, due to an increase of $2.0 million in lease income, which was driven by operating lease income, an increase of $0.4 million in insurance income, and an increase of $0.3 million in other non-interest income, which was driven by swap fee income, partially offset by a decrease of $0.3 million in deposit account service charges.

For the first six months of 2025, total non-interest income, excluding gains and losses, increased $4.0 million, or 8%, compared to the first six months of 2024. The increase was driven by (i) a $3.5 million increase in lease income, driven by gains on early Vantage lease terminations and operating lease income, (ii) a $0.9 million increase in other non-interest income, driven by an increase swap fee income due to customer demand, and (iii) a $0.7 million increase in trust and investment income, driven by an increase in assets under administration and management. These increases were partially offset by a $0.5 million decrease in deposit account service charges and $0.4 million decrease in electronic banking income due to customer activity.

Total Non-interest Expense:
Total non-interest expense decreased $0.4 million for the second quarter of 2025, compared to the linked quarter. The decrease in total non-interest expense was primarily due to a decreases of $0.9 million in salaries and employee benefit costs and $0.4 million in other non-interest expense, driven by lower corporate expenses, partially offset with increases of $0.5 million in professional fees and $0.4 million in data processing and software expenses. The decrease in salaries and employee benefit costs was due to annual expenses that occur in the first quarter of each year including stock-based compensation expenses attributable to forfeiture rate true-up on stock vested along with up-front expense on stock grants to certain retirement-eligible employees, and health savings account ("HSA") contributions.

Compared to the second quarter of 2024, total non-interest expense increased $1.6 million, or 2%. The increase in total non-interest expense was primarily driven by increases of $2.3 million in salaries and employee benefit costs, which were driven by higher sales-based incentive, medical costs, and payroll taxes, $0.7 million in professional fees, and $0.6 million in data processing and software expense, offset by decreases of $1.6 million in other non-interest expense, driven by a one-time $1.3 million true-up of corporate expenses recorded in the second quarter of 2024, and $0.6 million in amortization of other intangible assets.

For the first six months of 2025, total non-interest expense increased $3.9 million, or 3%, compared to the first six months of 2024. The increase was driven by increases of (i) $3.3 million in salaries and employee benefits costs, which were driven by higher sales-based incentive and medical costs, (ii) $1.8 million in data processing and software expenses, (iii) $0.8 million in professional fees, and (iv) $0.6 million in operating lease expense, partially offset with decreases of $1.2 million in amortization of other intangible assets and $1.1 million in net occupancy and equipment expense.

The efficiency ratio for the second quarter of 2025 was 59.3%, compared to 60.7% for the linked quarter and 59.2% for the second quarter of 2024. The efficiency ratio improved compared to the linked quarter mainly as the result of higher net interest income and lower non-interest expenses. The efficiency ratio for the first six months of 2025 was 60.0%, compared to 58.6% for the first six months of 2024. The efficiency ratio increased compared to the prior year first six months due to the increase in non-interest expense and lower net interest income. Peoples continues to focus on controlling expenses, while recognizing necessary costs in order to continue growing the business. 

Income Tax Expense: 
Peoples recorded income tax expense of $6.2 million with an effective tax rate of 22.7% for the second quarter of 2025, compared to income tax expense of $7.0 million with an effective tax rate of 22.4% for the linked quarter and income tax expense of $6.9 million with an effective tax rate of 19.1% for the second quarter of 2024. The decrease in income tax expense when compared to the prior quarter is primarily due to lower net income. The effective tax rate in the prior year quarter was lower due to a $1.1 million one-time benefit related to a prior year amended return. Peoples recorded income tax expense of $13.3 million with an effective tax rate of 22.6% for the first six months of 2025 and $15.1 million with an effective tax rate of 20.5% in the first six months of 2024. The decrease was driven by lower pre-tax income.

Investment Securities and Liquidity:
Peoples' investment portfolio primarily consists of available-for-sale investment securities reported at fair value and held-to-maturity investment securities reported at amortized cost. The available-for-sale investment securities balance at June 30, 2025, decreased $22.2 million when compared to at March 31, 2025, decreased $32.1 million when compared to at December 31, 2024, and decreased $67.6 million when compared to at June 30, 2024. The balances of unrealized losses, net of tax, on available-for-sale investment securities recognized within accumulated other comprehensive loss were $90.9 million, $96.6 million, and $112.7 million at June 30, 2025, at March 31, 2025, and at June 30, 2024, respectively. The decrease in accumulated other comprehensive loss was the result of the changes in the market value of available-for-sale investment securities during the period and were driven by changes in market interest rates. At June 30, 2025, Peoples' investment securities represented approximately 21.2% of total assets, compared to 20.7% at December 31, 2024, and 20.4% at June 30, 2024.

The held-to-maturity investment securities balance at June 30, 2025 increased $146.6 million when compared to at March 31, 2025, increased $125.2 million when compared to at December 31, 2024, and increased $198.0 million when compared to at June 30, 2024. The increase when compared to all prior periods was primarily driven by purchases of higher yielding, longer duration securities.

The effective durations of the available for sale investment securities and the held-to maturity investment securities as of June 30, 2025, were approximately 5.57 and 7.66, respectively. The duration of Peoples' investments is managed as part of its Asset Liability Management program, and has the potential to impact both liquidity and capital, as mismatches in duration may require a liquidation of investment securities at market prices to meet funding needs. These assets are one component of Peoples' liquidity profile.

Peoples maintains a number of liquid and liquefiable assets, borrowing capacity, and other sources of liquidity to ensure the availability of funds. At June 30, 2025, Peoples had liquid and liquefiable assets totaling $878.5 million, which included (i) cash and cash equivalents, (ii) unpledged government and agency investment securities and (iii) unpledged non-agency investment securities that could be liquidated. At June 30, 2025, Peoples had a total borrowing capacity of $607.5 million available through the Federal Home Loan Bank ("FHLB"), the Federal Reserve Bank ("FRB"), and federal funds. Additionally, at June 30, 2025, Peoples had contingent sources of liquidity totaling $3.7 billion. Cash and cash equivalents decreased $31.6 million when compared to December 31, 2024 due to timing of deposit inflows and loan outflows as of December 31, 2024.

Loans and Leases:
The period-end total loan and lease balances at June 30, 2025, increased $173.1 million, or 11% annualized, compared to at March 31, 2025. The increase in loans was driven by an increase in all segments, excluding overdrafts. Growth in the portfolio was primarily driven by increases of $63.6 million in commercial and industrial loans, $29.8 million in residential real estate loans, $22.2 million in construction loans, $17.7 million in other commercial real estate loans, $13.5 million in premium finance loans, and $18.5 million in Vantage leases, offset by a decrease of $13.9 million in North Star leases.

The period-end total loan and lease balances at June 30, 2025, increased $243.6 million, or 4%, compared to at December 31, 2024, driven by increases of $92.2 million other commercial real estate loans, $59.7 million in commercial and industrial loans, $42.9 million in residential real estate loans, and $22.8 million in consumer indirect loans.

The period-end total loan and lease balances at June 30, 2025, increased $276.2 million, or 4%, compared to at June 30, 2024, driven by increases of $149.3 million in commercial and industrial loans, $88.6 million in residential real estate loans, and $52.2 million in commercial real estate loans, partially offset by decreases of $30.6 million and $15.7 million in leases and premium finance loans, respectively.

Quarterly average total loan balances increased $89.0 million, or 1%, compared to the linked quarter. The increase in average total loan balances when compared to the linked quarter was primarily the result of increases of (i) $41.8 million in other commercial real estate loans, (ii) $22.3 million in construction loans, (iii) $18.2 million in residential real estate loans, and (iv) $12.3 million in consumer indirect loans, partially offset with a decrease of $11.0 million in leases.

Compared to the second quarter of 2024, quarterly average loan balances increased $202.8 million, or 3%. The increase was driven by growth of (i) $95.7 million in commercial and industrial loans, (ii)$48.6 million in residential real estate loans, (iii) $36.2 million in other commercial real estate loans, and (iv) $30.1 million in indirect consumer loans, partially offset by a decrease of $35.6 million in leases.

Asset Quality:
Key asset quality metrics remained stable through the second quarter of 2025. Delinquency trends improved as loans considered current comprised 99.1%, 98.5%, and 98.8% of the loan portfolio at June 30, 2025, at March 31, 2025, and at June 30, 2024, respectively. Total nonperforming assets at June 30, 2025, increased $0.8 million, or 2%, compared to at March 31, 2025, and decreased $2.0 million, or 4%, compared to at June 30, 2024. The increase in nonperforming assets compared to the linked quarter was primarily driven by an increase in premium finance loans greater than 90 days past due, but for which we expect to collect as the unearned premium on the underlying policy can be recovered. The decrease in nonperforming assets compared to at June 30, 2024, was impacted by a decrease in the amount of leases greater than 90 days administratively delinquent. Nonperforming assets as a percent of total loans and OREO was 0.71% at June 30, 2025, compared to 0.71% at March 31, 2025, and 0.77% at June 30, 2024.

Criticized loans, which are those categorized as special mention, substandard or doubtful, increased $17.9 million, or 8%, compared to at March 31, 2025, and increased $4.5 million, or 2%, compared to at June 30, 2024. As a percent of total loans, criticized loans were 3.70% at June 30, 2025, compared to 3.52% at March 31, 2025, and 3.79% at June 30, 2024. The increase in the amount of criticized loans compared to at March 31, 2025 and at June 30, 2024 was driven by the downgrade of one commercial relationship.

Classified loans, which are those categorized as substandard or doubtful, increased $1.2 million, or 1%, compared to at March 31, 2025, and increased $4.8 million, or 4%, compared to at June 30, 2024. As a percent of total loans, classified loans were 1.89% at June 30, 2025, compared to 1.93% at March 31, 2025, and 1.90% at June 30, 2024. The increase in classified loans compared to at March 31, 2025, and at June 30, 2024, was primarily driven by loan downgrades.

Annualized net charge-offs were 0.43% of average total loans for the second quarter of 2025, compared to 0.52% for the linked quarter, and 0.27% for the second quarter of 2024. The decrease relative to the linked quarter was driven by a decrease in charge-offs in leases originated by our North Star Leasing business, which comprised 30 basis points of the second quarter net charge-off rate and 35 basis points of the linked quarter net charge-off rate. The increase in net charge-offs during the second quarter of 2025 versus the prior year second quarter was primarily attributable to an increase in charge-offs in leases originated by our North Star Leasing business.

At June 30, 2025, the allowance for credit losses increased $9.4 million when compared to at March 31, 2025, and increased $8.4 million when compared to at June 30, 2024. The ratio of the allowance for credit losses as a percent of total loans was 1.13% at June 30, 2025, compared to 1.01% at March 31, 2025, and 1.05% at June 30, 2024. The ratio of allowance for credit losses as a percentage of non-performing loans increased to 183.82% at June 30, 2025, compared to 163.76% at March 31, 2025, and 160.56% at June 30, 2024.

Deposits:
As of June 30, 2025, period-end total deposits decreased $97.5 million compared to at March 31, 2025, which was primarily driven by decreases of $52.5 million in governmental deposits, $39.8 million in money market deposits, $28.3 million in interest-bearing demand accounts, and $16.2 million in brokered deposits, partially offset by an increase of $39.3 million in retail certificates of deposit.  The decrease in governmental deposit accounts was due to the seasonality of those balances while the decrease in brokered deposit accounts was due to a strategic shift to other funding sources at lower rates. The increase in retail certificates of deposits was due to current specials being offered.

As of June 30, 2025, period-end total deposits increased $47.0 million compared to at December 31, 2024, which was primarily driven by increases of $83.9 million and $49.3 million in retail certificates of deposits and money market deposits, respectively, partially offset by a decrease of $112.2 million in brokered deposits. The increase in retail certificates of deposits was due to current specials being offered while the decrease in brokered deposit accounts was due to a strategic shift to other funding sources at lower rates.

Compared to June 30, 2024, period-end deposit balances increased $339.4 million, or 5%. The increase in total deposits was primarily driven by increases of $192.4 million in retail certificates of deposit, $58.4 million in money market deposits, and $58.1 million in non-interest bearing deposits. These were partially offset by a decrease of $24.6 million in interest-bearing demand accounts. The increase in retail certificates of deposits was driven by special promotional rate offerings over the past year.

The percentages of retail deposit balances and commercial deposit balances of the total deposit balance were 78% and 22%, respectively, at June 30, 2025, 76% and 24%, respectively, at March 31, 2025, and 78% and 22%, respectively, at June 30, 2024.

Uninsured deposits were 26%, 27%, and 30% of total deposits at June 30, 2025, at March 31, 2025, and at June 30, 2024, respectively. Uninsured amounts are based on the portion of customer account balances that exceeded the FDIC limit of $250,000. Peoples pledges investment securities against certain governmental deposit accounts, which collateralized $641.1 million, or 32%, $725.5 million, or 35%, and $748.3 million, or 38%, of the uninsured deposit balances at June 30, 2025, at March 31, 2025, and at June 30, 2024, respectively.

Average deposit balances during the second quarter of 2025 increased $16.8 million when compared to the linked quarter, and increased $342.3 million, or 5%, when compared to the second quarter of 2024. The increase over the linked quarter was driven by increases of $58.6 million in retail certificates of deposit, $47.5 million in non-interest bearing deposits, $30.0 million in governmental deposits, and $24.2 million in money market deposits, partially offset by a decrease of $145.4 million in brokered deposits. The increase when compared to the second quarter of 2024 was driven by increases of $254.8 million in retail certificates of deposit, $87.9 million in money market deposits, and $69.6 million in non-interest bearing deposits, partially offset by a decrease of $63.0 million in brokered deposits. Total demand deposit accounts comprised 34%, 34%, and 35% of total deposits at June 30, 2025, at March 31, 2025 and at June 30, 2024, respectively.

Stockholders' Equity:
Total stockholders' equity at June 30, 2025, increased $15.5 million, or 1%, compared to at March 31, 2025. This change was primarily driven by net income of $21.2 million and a decrease of $5.4 million in accumulated other comprehensive loss during the quarter, partially offset by dividends paid of $14.6 million. The decrease in accumulated other comprehensive loss was the result of the changes in the market value of available-for-sale investment securities during the period.

Total stockholders' equity at June 30, 2025, increased $41.8 million, or 4%, compared to at December 31, 2024, which was due to net income of $45.5 million in the first six months of 2025 and a decrease of $20.1 million in accumulated other comprehensive loss, partially offset by dividends paid of $28.8 million.

Total stockholders' equity at June 30, 2025, increased $75.5 million, or 7%, compared to at June 30, 2024, which was due to net income of $104.2 million for the last twelve months and a decrease in other comprehensive loss of $19.9 million, partially offset by dividends paid of $57.2 million.

Peoples Bancorp Inc. ("Peoples", Nasdaq: PEBO) is a diversified financial services holding company and makes available a complete line of banking, trust and investment, insurance and premium financing solutions through its subsidiaries. Headquartered in Marietta, Ohio, since 1902, Peoples has established a heritage of financial stability, growth and community impact. Peoples had $9.5 billion in total assets as of June 30, 2025, and 145 locations, including 127 full-service bank branches in Ohio, West Virginia, Kentucky, Virginia, Washington D.C., and Maryland. Peoples' vision is to be the Best Community Bank in America.

Peoples is a member of the Russell 3000 index of United States ("U.S.") publicly-traded companies. Peoples offers services through Peoples Bank (which includes the divisions of Peoples Investment Services, Peoples Premium Finance and North Star Leasing), Peoples Insurance Agency, LLC, and Vantage Financial, LLC.

Conference Call to Discuss Earnings:
Peoples will conduct a facilitated conference call to discuss second quarter 2025 results of operations on July 22, 2025, at 11:00 a.m., Eastern Time, with members of Peoples' executive management participating. Analysts, media and individual investors are invited to participate in the conference call by calling (866) 890-9285. A simultaneous webcast of the conference call audio and earnings conference call presentation will be available online via the "Investor Relations" section of Peoples' website, www.peoplesbancorp.com. Participants are encouraged to call or sign in at least 15 minutes prior to the scheduled conference call time to ensure participation and, if required, to download and install the necessary software. A replay of the call will be available on Peoples' website in the "Investor Relations" section for one year.

Use of Non-US GAAP Financial Measures:
This news release contains financial information and performance measures determined by methods other than those in accordance with accounting principles generally accepted in the United States of America ("US GAAP"). Management uses these "non-US GAAP" financial measures in its analysis of Peoples' performance and the efficiency of its operations. Management believes that these non-US GAAP financial measures provide a greater understanding of ongoing operations and enhance comparability of results with prior periods and peers. These disclosures should not be viewed as substitutes for financial measures determined in accordance with US GAAP, nor are they necessarily comparable to non-US GAAP performance measures that may be presented by other companies. Below is a listing of the non-US GAAP financial measures used in this news release:

  • Core non-interest expense is a non-US GAAP financial measure since it excludes the impact of acquisition-related expense.
  • The efficiency ratio is calculated as total non-interest expense (less amortization of other intangible assets) as a percentage of fully tax-equivalent net interest income plus total non-interest income, excluding net gains and losses. This ratio is a non-US GAAP financial measure since it excludes amortization of other intangible assets and all gains and losses included in earnings, and uses fully tax-equivalent net interest income.
  • Tangible assets, tangible equity, the tangible equity to tangible assets ratio and tangible book value per common share are non-US GAAP financial measures since they exclude the impact of goodwill and other intangible assets acquired through acquisitions on both total stockholders' equity and total assets.
  • Total non-interest income, excluding net gains and losses, is a non-US GAAP financial measure since it excludes all gains and losses included in earnings.
  • Pre-provision net revenue is defined as net interest income plus total non-interest income, excluding net gains and losses, minus total non-interest expense. This measure is a non-US GAAP financial measure since it excludes the provision for (recovery of) credit losses and all gains and losses included in net income.
  • Return on average tangible equity is calculated as annualized net income (less the after-tax impact of amortization of other intangible assets) divided by average tangible equity. This measure is a non-US GAAP financial measure since it excludes the after-tax impact of amortization of other intangible assets from net income and the impact of average goodwill and other average intangible assets acquired through acquisitions on average stockholders' equity.

A reconciliation of these non-US GAAP financial measures to the most directly comparable US GAAP financial measures is included at the end of this news release under the caption of "Non-US GAAP Financial Measures (Unaudited)."

Safe Harbor Statement:
Certain statements made in this news release regarding Peoples' financial condition, results of operations, plans, objectives, future performance and business, are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. These forward-looking statements are identified by the fact they are not historical facts and include words such as "anticipate," "estimate," "may," "feel," "expect," "believe," "plan," "will," "will likely," "would," "should," "could," "project," "goal," "target," "potential," "seek," "intend," "continue," "remain," and similar expressions.

These forward-looking statements reflect management's current expectations based on all information available to management and its knowledge of Peoples' business and operations. Additionally, Peoples' financial condition, results of operations, plans, objectives, future performance and business are subject to risks and uncertainties that may cause actual results to differ materially. These factors include, but are not limited to:

(1)

the effects of interest rate policies, changes in the interest rate environment due to economic conditions and/or the fiscal and monetary policy measures undertaken by the U.S. government and the Federal Reserve Board, including changes in the Federal Funds Target Rate, in response to such economic conditions, which may adversely impact interest rates, the interest rate yield curve, interest margins, loan demand and interest rate sensitivity;

(2)

the effects of inflationary pressures on borrowers' liquidity and ability to repay;

(3)

the success, impact, and timing of the implementation of Peoples' business strategies and Peoples' ability to manage strategic initiatives, including the interest rate policies of the Federal Reserve Board, the completion and successful integration of acquisitions, and the expansion of commercial and consumer lending activities;

(4)

competitive pressures among financial institutions, or from non-financial institutions, which may increase significantly, including product and pricing pressures, which can in turn impact Peoples' credit spreads, changes to third-party relationships and revenues, changes in the manner of providing services, customer acquisition and retention pressures, and Peoples' ability to attract, develop and retain qualified professionals;

(5)

uncertainty regarding the nature, timing, cost, and effect of legislative or regulatory changes or actions, or deposit insurance premium levels, promulgated and to be promulgated by governmental and regulatory agencies, including the Ohio Division of Financial Institutions, the Federal Deposit Insurance Corporation, the Federal Reserve Board and the Consumer Financial Protection Bureau, which may subject Peoples, its subsidiaries, or acquired companies to a variety of new and more stringent legal and regulatory requirements;

(6)

the effects of easing restrictions on participants in the financial services industry;

(7)

current and future local, regional, national and international economic conditions (including the impact of persistent inflation, supply chain issues or labor shortages, supply-demand imbalances affecting local real estate prices, high unemployment rates in the local or regional economies in which Peoples operates and/or the U.S. economy generally, an increasing federal government budget deficit, the failure of the federal government to raise the federal debt ceiling, potential or imposed tariffs, a U.S. withdrawal from or significant renegotiation of trade agreements, trade wars and other changes in trade regulations, changes in the relationship of the U.S. and U.S. global trading partners), and changes in the federal, state, and local governmental policy and the impact these conditions may have on Peoples, Peoples' customers and Peoples' counterparties, and Peoples' assessment of the impact, which may be different than anticipated;

(8)

Peoples may issue equity securities in connection with future acquisitions, which could cause ownership and economic dilution to Peoples' current shareholders;

(9)

changes in prepayment speeds, loan originations, levels of nonperforming assets, delinquent loans, charge-offs, and customer and other counterparties' performance and creditworthiness generally, which may be less favorable than expected in light of recent inflationary pressures and continued elevated interest rates, and may adversely impact the amount of interest income generated;

(10)

Peoples may have more credit risk and higher credit losses to the extent there are loan concentrations by location or industry of borrowers or collateral;

(11)

future credit quality and performance, including expectations regarding future credit losses and the allowance for credit losses;

(12)

changes in accounting standards, policies, estimates or procedures may adversely affect Peoples' reported financial condition or results of operations;

(13)

the impact of assumptions, estimates and inputs used within models, which may vary materially from actual outcomes, including under the CECL model;

(14)

adverse changes in the conditions and trends in the financial markets, including recent inflationary pressures: and the impacts of potential or imposed tariffs on markets, which may adversely affect the fair value of securities within Peoples' investment portfolio, the interest rate sensitivity of Peoples' consolidated balance sheet, and the income generated by Peoples' trust and investment activities;

(15)

the volatility from quarter to quarter of mortgage banking income, whether due to interest rates, demand, the fair value of mortgage loans, or other factors;

(16)

Peoples' ability to receive dividends from Peoples' subsidiaries;

(17)

Peoples' ability to maintain required capital levels and adequate sources of funding and liquidity;

(18)

the impact of larger or similar-sized financial institutions encountering problems, such as the failure in 2024 of Republic First Bank, and closures in 2023 of Silicon Valley Bank in California, Signature Bank in New York and First Republic Bank in California, which may adversely affect the banking industry and/or Peoples' business generation and retention, funding and liquidity, including Peoples' continued ability to grow deposits or maintain adequate deposit levels, and may further result in potential increased regulatory requirements, increased reputational risk and potential impacts to macroeconomic conditions;

(19)

Peoples' ability to secure confidential information and deliver products and services through the use of computer systems and telecommunications networks, including those of Peoples' third-party vendors and other service providers, which may prove inadequate, and could adversely affect customer confidence in Peoples and/or result in Peoples incurring a financial loss;

(20)

any misappropriation of the confidential information which Peoples possesses could have an adverse impact on Peoples' business and could result in regulatory actions, litigation and other adverse effects;

(21)

Peoples' ability to anticipate and respond to technological changes, and Peoples' reliance on, and the potential failure of, a number of third-party vendors to perform as expected, including Peoples' primary core banking system provider, which can impact Peoples' ability to respond to customer needs and meet competitive demands;

(22)

operational issues stemming from and/or capital spending necessitated by the potential need to adapt to industry changes in information technology systems on which Peoples and Peoples' subsidiaries are highly dependent;

(23)

changes in consumer spending, borrowing and saving habits, whether due to changes in retail distribution strategies, consumer preferences and behavior, changes in business and economic conditions, legislative or regulatory initiatives, or other factors, which may be different than anticipated;

(24)

the adequacy of Peoples' internal controls and risk management program in the event of changes in strategic, reputational, market, economic, operational, cybersecurity, compliance, legal, asset/liability repricing, liquidity, credit and interest rate risks associated with Peoples' business;

(25)

the impact on Peoples' businesses, personnel, facilities or systems of losses related to acts of fraud, theft, misappropriation or violence;

(26)

the impact on Peoples' businesses, as well as on the risks described above, of various domestic or international widespread natural or other disasters including severe weather events, pandemics, cybersecurity attacks, system failures, civil unrest, military or terrorist activities or international conflicts (including Russia's war in Ukraine and the ongoing conflicts in the Middle East);

(27)

the potential deterioration of the U.S. economy due to financial, political or other shocks;

(28)

the impact of natural disasters, pandemics, acts of war or terrorism, or other catastrophic events;

(29)

the potential influence on the U.S. financial markets and economy from the effects of climate change, including any enhanced regulatory, compliance, credit and reputational risks and costs;

(30)

the impact on Peoples' businesses and operating results of any costs associated with obtaining rights in intellectual property claimed by others and adequately protecting Peoples' intellectual property;

(31)

risks and uncertainties associated with Peoples' entry into new geographic markets and risks resulting from Peoples' inexperience in these new geographic markets;

(32)

changes in laws or regulations imposed by Peoples' regulators impacting Peoples' capital actions, including dividend payments and share repurchases;

(33)

the vulnerability of Peoples' network and online banking portals, and the systems of parties with whom Peoples contracts, to unauthorized access, computer viruses, phishing schemes, spam attacks, human error, natural disasters, power loss and other security breaches;

(34)

regulatory and legal matters, including the failure to resolve any outstanding matters on a timely basis and the potential of new regulatory matters, litigation, or other legal actions, which may result in, among other things, additional costs, fines, penalties, restrictions on our business activities, reputational harm, or other adverse consequences;

(35)

Peoples' business may be adversely affected by increased political and regulatory scrutiny of corporate environmental, social and governance ("ESG") practices;

(36)

the effect of a fall in stock market prices on the asset and wealth management business; and

(37)

other risk factors relating to the banking industry or Peoples as detailed from time to time in Peoples' reports filed with the Securities and Exchange Commission (the "SEC"), including those risk factors included in the disclosures under the heading "ITEM 1A. RISK FACTORS" of Peoples' Annual Report on Form 10-K for the fiscal year ended December 31, 2024. Peoples encourages readers of this news release to understand forward-looking statements to be strategic objectives rather than absolute targets of future performance. Peoples undertakes no obligation to update these forward-looking statements to reflect events or circumstances after the date of this news release or to reflect the occurrence of unanticipated events, except as required by applicable legal requirements. Copies of documents filed with the SEC are available free of charge at the SEC's website at http://www.sec.gov and/or from Peoples' website - www.peoplesbancorp.com under the "Investor Relations" section.

As required by U.S. GAAP, Peoples is required to evaluate the impact of subsequent events through the issuance date of its June 30, 2025 consolidated financial statements as part of its Quarterly Report on Form 10-Q to be filed with the SEC. Accordingly, subsequent events could occur that may cause Peoples to update its critical accounting estimates and/or to revise its financial information from the estimates and information contained in this news release.

 

PER COMMON SHARE DATA AND SELECTED RATIOS (Unaudited)



At or For the Three Months Ended


At or For the Six Months Ended


June 30,


March 31,


June 30,


June 30,


2025


2025


2024


2025


2024

PER COMMON SHARE:










Earnings per common share:










   Basic

$       0.60


$           0.69


$       0.83


$       1.29


$        1.67

   Diluted

0.59


0.68


0.82


1.28


1.66

Cash dividends declared per common share

0.41


0.40


0.40


0.81


0.79

Book value per common share (a)

32.33


31.90


30.36


32.33


30.36

Tangible book value per common share (a)(b)

21.18


20.68


18.91


21.18


18.91

Closing price of common shares at end of period

$     30.54


$         29.66


$     30.00


$     30.54


$      30.00











SELECTED RATIOS:










Return on average stockholders' equity (c)

7.42 %


8.79 %


10.99 %


8.09 %


11.15 %

Return on average tangible equity (c)(d)

12.31 %


14.66 %


19.21 %


13.46 %


19.55 %

Return on average assets (c)

0.92 %


1.07 %


1.27 %


0.99 %


1.29 %

Efficiency ratio (e)(f)

59.25 %


60.68 %


59.19 %


59.96 %


58.62 %

Net interest margin (c)(f)

4.15 %


4.12 %


4.18 %


4.14 %


4.22 %

Dividend payout ratio (g)

68.90 %


58.46 %


48.94 %


63.32 %


47.69 %



(a)

Data presented as of the end of the period indicated.

(b)

Tangible book value per common share represents a non-US GAAP financial measure since it excludes the balance sheet impact of goodwill and other intangible assets acquired through acquisitions on stockholders' equity.  Additional information regarding the calculation of this ratio is included at the end of this news release under the caption of "Non-US GAAP Financial Measures (Unaudited)."

(c)

Ratios are presented on an annualized basis.

(d)

Return on average tangible equity represents a non-US GAAP financial measure since it excludes the after-tax impact of amortization of other intangible assets from net income and it excludes the balance sheet impact of average goodwill and other intangible assets acquired through acquisitions on average stockholders' equity. Additional information regarding the calculation of this ratio is included at the end of this news release under the caption of "Non-US GAAP Financial Measures (Unaudited)."

(e)

The efficiency ratio is defined as total non-interest expense (less amortization of other intangible assets) as a percentage of fully tax-equivalent net interest income plus total non-interest income (excluding all gains and losses). This ratio represents a non-US GAAP financial measure since it excludes amortization of other intangible assets, and all gains and losses included in earnings, and uses fully tax-equivalent net interest income. Additional information regarding the calculation of this ratio is included at the end of this news release under the caption of "Non-US GAAP Financial Measures (Unaudited)."

(f)

Interest income and yields are presented on a fully tax-equivalent basis, using a 21% statutory federal corporate income tax rate.

(g)

This ratio is calculated based on dividends declared during the period divided by net income for the period.

 

CONSOLIDATED STATEMENTS OF INCOME



Three Months Ended


Six Months Ended


June 30,


March 31,


June 30,


June 30,


2025


2025


2024


2025


2024

(Dollars in thousands, except per share data)

(Unaudited)


(Unaudited)


(Unaudited)


(Unaudited)


(Unaudited)

Total interest income

$            126,407


$             124,542


$            130,770


$        250,949


$         258,363

Total interest expense

38,830


39,287


44,157


78,117


85,110

Net interest income

87,577


85,255


86,613


172,832


173,253

Provision for credit losses

16,642


10,190


5,683


26,832


11,785

Net interest income after provision for credit losses

70,935


75,065


80,930


146,000


161,468











Non-interest income:










Electronic banking income

6,272


5,885


6,470


12,157


12,516

Trust and investment income

5,281


5,061


4,999


10,342


9,598

Insurance income

4,549


6,054


4,109


10,603


10,607

Lease income

4,189


3,446


2,147


7,635


4,163

Deposit account service charges

4,059


4,015


4,339


8,074


8,562

Bank owned life insurance income

1,112


1,133


1,037


2,245


2,537

Mortgage banking income

220


396


243


616


564

Net loss on investment securities


(2)


(353)


(2)


(354)

Net loss on asset disposals and other transactions

(280)


(361)


(428)


(641)


(769)

Other non-interest income

1,478


1,472


1,141


2,950


2,059

  Total non-interest income

26,880


27,099


23,704


53,979


49,483











Non-interest expense:










Salaries and employee benefit costs

38,893


39,821


36,564


78,714


75,457

Data processing and software expense

7,356


7,005


6,743


14,361


12,512

Net occupancy and equipment expense

5,690


5,612


6,142


11,302


12,425

Professional fees

3,610


3,087


2,935


6,697


5,902

Amortization of other intangible assets

2,211


2,213


2,787


4,424


5,575

Electronic banking expense

2,018


2,025


1,941


4,043


3,722

FDIC insurance expense

1,251


1,251


1,251


2,502


2,437

Other loan expenses

1,213


1,119


1,036


2,332


2,112

Operating lease expense

1,053


985


788


2,038


1,427

Marketing expense

718


903


681


1,621


1,737

Travel and entertainment expense

713


500


530


1,213


1,138

Communication expense

712


734


736


1,446


1,535

Franchise tax expense

678


929


760


1,607


1,641

Other non-interest expense

4,246


4,603


5,864


8,849


9,603

  Total non-interest expense

70,362


70,787


68,758


141,149


137,223

  Income before income taxes

27,453


31,377


35,876


58,830


73,728

Income tax expense

6,241


7,041


6,869


13,282


15,137

    Net income

$              21,212


$               24,336


$              29,007


$          45,548


$           58,591

CONSOLIDATED STATEMENTS OF INCOME (Cont.)


Three Months Ended


Six Months Ended


June 30,


March 31,


June 30,


June 30,


2025


2025


2024


2025


2024

(Dollars in thousands, except per share data)

(Unaudited)


(Unaudited)


(Unaudited)


(Unaudited)


(Unaudited)

PER COMMON SHARE DATA:










Net income available to common shareholders

$              21,212


$               24,336


$              29,007


$          45,548


$           58,591

Less: Dividends paid on unvested common shares

212


210


218


422


361

Less: Undistributed income allocated to unvested common shares

17


37


55


54


119

Net earnings allocated to common shareholders

$              20,983


$               24,089


$              28,734


$          45,072


$           58,111











Weighted-average common shares outstanding

34,972,065


34,895,723


34,764,489


34,934,105


34,752,419

Effect of potentially dilutive common shares

359,642


401,412


353,159


365,313


319,131

Total weighted-average diluted common shares outstanding

35,331,707


35,297,135


35,117,648


35,299,418


35,071,550











Earnings per common share – basic

$                  0.60


$                   0.69


$                  0.83


$              1.29


$               1.67

Earnings per common share – diluted

$                  0.59


$                   0.68


$                  0.82


$              1.28


$               1.66

Cash dividends declared per common share

$                  0.41


$                   0.40


$                  0.40


$              0.81


$               0.79











Weighted-average common shares outstanding – basic

34,972,065


34,895,723


34,764,489


34,934,105


34,752,419

Weighted-average common shares outstanding – diluted

35,331,707


35,297,135


35,117,648


35,299,418


35,071,550

Common shares outstanding at the end of period

35,673,721


35,669,100


35,498,977


35,673,721


35,498,977

 

CONSOLIDATED BALANCE SHEETS



June 30,


December 31,


2025


2024

(Dollars in thousands)

(Unaudited)



Assets




Cash and cash equivalents:




  Cash and due from banks

$            122,105


$            108,721

  Interest-bearing deposits in other banks

63,970


108,943

    Total cash and cash equivalents

186,075


217,664

Available-for-sale investment securities, at fair value (amortized cost of




 $1,170,092 at June 30, 2025 and $1,229,382 at December 31, 2024) (a)

1,051,497


1,083,555

Held-to-maturity investment securities, at amortized cost (fair value of




  $831,611 at June 30, 2025 and $692,499 at December 31, 2024) (a)

900,019


774,800

Other investment securities, at cost

67,538


60,132

    Total investment securities (a)

2,019,054


1,918,487

Loans and leases, net of deferred fees and costs (b)

6,601,589


6,358,003

Allowance for credit losses

(74,681)


(63,348)

    Net loans and leases

6,526,908


6,294,655

Loans held for sale

3,047


2,348

Bank premises and equipment, net of accumulated depreciation

103,875


103,669

Bank owned life insurance

145,954


143,710

Goodwill

363,199


363,199

Other intangible assets

34,586


39,223

Other assets

157,910


171,292

    Total assets

$         9,540,608


$         9,254,247

Liabilities




Deposits:




Non-interest-bearing

$         1,530,824


$         1,507,661

Interest-bearing

6,106,384


6,082,544

    Total deposits

7,637,208


7,590,205

Short-term borrowings

396,860


193,474

Long-term borrowings

232,391


238,073

Accrued expenses and other liabilities

120,799


120,905

    Total liabilities

$         8,387,258


$         8,142,657





Stockholders' Equity




Preferred shares, no par value, 50,000 shares authorized, no shares issued at June 30, 2025 or at

  December 31, 2024


Common shares, no par value, 50,000,000 shares authorized, 36,808,227 shares issued at June 30, 2025

  and 36,782,601 shares issued at December 31, 2024, including shares in treasury

868,493


866,844

Retained earnings

406,252


388,109

Accumulated other comprehensive loss, net of deferred income taxes

(90,272)


(110,385)

Treasury stock, at cost, 1,219,408 common shares at June 30, 2025 and 1,311,175 common shares at

  December 31, 2024

(31,123)


(32,978)

    Total stockholders' equity

1,153,350


1,111,590

    Total liabilities and stockholders' equity

$         9,540,608


$         9,254,247



(a)

Available-for-sale investment securities and held-to-maturity investment securities are presented net of allowance for credit losses of $0 and $237, respectively, for both June 30, 2025 and December 31, 2024.

(b)

Also referred to throughout this document as "total loans" and "loans held for investment."

 

SELECTED FINANCIAL INFORMATION (Unaudited)



June 30,

March 31,

December 31,

September 30,

June 30,

(Dollars in thousands)

2025

2025

2024

2024

2024

Loan Portfolio






Construction

$         341,313

$          319,104

$         328,388

$         320,094

$         340,601

Commercial real estate, other

2,248,214

2,230,538

2,156,013

2,180,491

2,195,979

Commercial and industrial

1,407,382

1,343,827

1,347,645

1,250,152

1,258,063

Premium finance

277,622

264,080

269,435

286,983

293,349

Leases

400,052

395,454

406,598

433,009

430,651

Residential real estate

877,968

848,168

835,101

777,542

789,344

Home equity lines of credit

241,785

235,409

232,661

233,109

227,608

Consumer, indirect

692,674

680,260

669,857

677,056

675,054

Consumer, direct

113,615

110,639

111,052

112,198

113,655

Deposit account overdrafts

964

1,047

1,253

1,205

1,067

    Total loans and leases

$      6,601,589

$       6,428,526

$      6,358,003

$      6,271,839

$      6,325,371

Total acquired loans and leases (a)

$      1,469,649

$       1,511,704

$      1,557,728

$      1,585,552

$      1,686,784

    Total originated loans and leases

$      5,131,940

$       4,916,822

$      4,800,275

$      4,686,287

$      4,638,587

Total Investment Securities

$      2,019,054

$       1,878,462

$      1,918,487

$      1,829,995

$      1,883,865

Deposit Balances






Non-interest-bearing deposits (b)

$      1,530,824

$       1,526,285

$      1,507,661

$      1,453,441

$      1,472,697

Interest-bearing deposits:






  Interest-bearing demand accounts (b)

1,058,910

1,087,197

1,085,152

1,065,912

1,083,512

  Retail certificates of deposit

2,005,322

1,965,978

1,921,415

1,884,139

1,812,874

  Money market deposit accounts

927,543

967,331

878,254

894,690

869,159

  Governmental deposit accounts

781,949

834,409

775,782

824,136

766,337

  Savings accounts

889,872

894,592

866,959

864,935

880,542

  Brokered deposits

442,788

458,957

554,982

495,904

412,653

    Total interest-bearing deposits

$      6,106,384

$       6,208,464

$      6,082,544

$      6,029,716

$      5,825,077

    Total deposits

$      7,637,208

$       7,734,749

$      7,590,205

$      7,483,157

$      7,297,774

Total demand deposits (b)

$      2,589,734

$       2,613,482

$      2,592,813

$      2,519,353

$      2,556,209

Asset Quality






Nonperforming assets (NPAs):






  Loans 90+ days past due and accruing

$             6,126

$              4,207

$             8,637

$           27,578

$             7,592

  Nonaccrual loans

34,502

35,628

34,129

34,807

33,669

    Total nonperforming loans (NPLs) (f)

40,628

39,835

42,766

62,385

41,261

  Other real estate owned (OREO)

6,013

5,980

6,170

7,397

7,409

Total NPAs (f)

$          46,641

$            45,815

$           48,936

$           69,782

$           48,670

Criticized loans (c)

$        244,442

$          226,542

$         241,302

$         237,627

$         239,943

Classified loans (d)

125,014

123,842

128,815

133,241

120,180

Allowance for credit losses as a percent of NPLs (f)

183.82 %

163.76 %

148.13 %

106.82 %

160.56 %

NPLs as a percent of total loans (f)

0.62 %

0.62 %

0.67 %

0.99 %

0.65 %

NPAs as a percent of total assets (f)

0.49 %

0.50 %

0.53 %

0.76 %

0.53 %

NPAs as a percent of total loans and OREO (f)

0.71 %

0.71 %

0.77 %

1.11 %

0.77 %

Criticized loans as a percent of total loans (c)

3.70 %

3.52 %

3.80 %

3.79 %

3.79 %

Classified loans as a percent of total loans (d)

1.89 %

1.93 %

2.03 %

2.12 %

1.90 %

Allowance for credit losses as a percent of total loans

1.13 %

1.01 %

1.00 %

1.06 %

1.05 %

Total demand deposits as a percent of total deposits (b)

33.91 %

33.79 %

34.16 %

33.67 %

35.03 %

Capital Information (e)(g)(i)






Common equity tier 1 capital ratio (h)

11.95 %

12.10 %

11.95 %

11.80 %

11.74 %

Tier 1 risk-based capital ratio

12.39 %

12.54 %

12.39 %

12.24 %

12.18 %

Total risk-based capital ratio (tier 1 and tier 2)

13.71 %

13.75 %

13.58 %

13.42 %

13.44 %

Leverage ratio

9.83 %

9.80 %

9.73 %

9.59 %

9.29 %

Common equity tier 1 capital

$         857,036

$          845,200

$         833,128

$         821,192

$         799,710

Tier 1 capital

888,282

876,246

863,974

851,823

830,126

Total capital (tier 1 and tier 2)

982,928

960,820

946,724

933,679

916,073

Total risk-weighted assets

$      7,170,842

$       6,986,418

$      6,971,490

$      6,958,225

$      6,814,149

Total stockholders' equity to total assets

12.09 %

12.31 %

12.01 %

12.31 %

11.68 %

Tangible equity to tangible assets (j)

8.26 %

8.34 %

8.01 %

8.25 %

7.61 %



(a)

Includes all loans and leases acquired and purchased in 2012 and thereafter.

(b)

The sum of non-interest-bearing deposits and interest-bearing demand accounts is considered total demand deposits.

(c)

Includes loans categorized as special mention, substandard, or doubtful.

(d)

Includes loans categorized as substandard or doubtful.

(e)

Data presented as of the end of the period indicated.

(f)

Nonperforming loans include loans 90+ days past due and accruing, renegotiated loans and nonaccrual loans. Nonperforming assets include nonperforming loans and OREO.

(g)

June 30, 2025 data based on preliminary analysis and subject to revision.

(h)

Peoples' capital conservation buffer was 5.71% at June 30, 2025, 5.75% at March 31, 2025, 5.58% at December 31, 2024, 5.42% at September 30, 2024, and 5.44% at June 30, 2024, compared to required capital conservation buffer of 2.50%

(i)

Peoples has adopted the five-year transition to phase in the impact of the adoption of CECL on regulatory capital ratios.

(j)

This ratio represents a non-US GAAP financial measure since it excludes the balance sheet impact of intangible assets acquired through acquisitions on both total stockholders' equity and total assets. Additional information regarding the calculation of this ratio is included at the end of this news release under the caption of "Non-US GAAP Financial Measures (Unaudited)."

 

PROVISION FOR (RECOVERY OF) CREDIT LOSSES INFORMATION



Three Months Ended


Six Months Ended


June 30,


March 31,


June 30,


June 30,


2025


2025


2024


2025


2024

(Dollars in thousands)

(Unaudited)


(Unaudited)


(Unaudited)


(Unaudited)


(Unaudited)

Provision for credit losses










Provision for credit losses

$         16,475


$            10,035


$            5,397


$      26,510


$     11,231

Provision for checking account overdrafts

167


155


286


322


554

  Total provision for credit losses

$         16,642


$            10,190


$            5,683


$      26,832


$     11,785











Net Charge-Offs










Gross charge-offs

$           7,829


$              8,760


$            4,607


$      16,589


$       8,481

Recoveries

865


639


374


1,504


928

  Net charge-offs

$           6,964


$              8,121


$            4,233


$      15,085


$       7,553











Net Charge-Offs (Recoveries) by Type










Construction

$                —


$                   —


$                 —


$             —


$            —

Commercial real estate, other

35


211


80


246


209

Commercial and industrial

539


374


46


913


274

Premium finance

90


65


51


155


97

Leases

4,838


5,409


2,204


10,247


3,262

Residential real estate

(50)


93


(4)


43


(7)

Home equity lines of credit

12



9


12


2

Consumer, indirect

1,244


1,656


1,450


2,900


2,840

Consumer, direct

82


135


126


217


343

Deposit account overdrafts

174


178


271


352


533

  Total net charge-offs

$           6,964


$              8,121


$            4,233


$      15,085


$       7,553











As a percent of average total loans (annualized)

0.43 %


0.52 %


0.27 %


0.48 %


0.23 %

 

SUPPLEMENTAL INFORMATION (Unaudited)



June 30,


March 31,


December 31,


September 30,


June 30,

(Dollars in thousands)

2025


2025


2024


2024


2024











Trust assets under administration and management

$         2,138,439


$          2,037,992


$           2,061,267


$          2,124,320


$         2,071,832

Brokerage assets under administration and management

1,724,311


1,626,768


1,614,189


1,608,368


1,567,775

Mortgage loans serviced for others

326,710


337,279


346,189


347,719


341,298

Employees (full-time equivalent)

1,477


1,460


1,479


1,496


1,489

 

CONSOLIDATED AVERAGE BALANCE SHEETS AND NET INTEREST INCOME (Unaudited)



Three Months Ended


June 30, 2025


March 31, 2025


June 30, 2024

(Dollars in thousands)

Balance

Income/

Expense

Yield/
Cost


Balance

Income/

Expense

Yield/
Cost


Balance

Income/

Expense

Yield/
Cost

Assets












Short-term investments

$      86,655

$     1,039

4.81 %


$      88,919

$       900

4.10 %


$    178,094

$    2,502

5.65 %

Investment securities (a)(b)

1,910,884

16,808

3.52 %


1,897,035

16,598

3.50 %


1,870,372

16,144

3.45 %

Loans (b)(c):












Construction

335,396

5,935

7.00 %


313,130

5,572

7.12 %


328,943

6,595

7.93 %

Commercial real estate, other

2,110,961

33,430

6.27 %


2,069,134

33,260

6.43 %


2,074,718

36,420

6.94 %

Commercial and industrial

1,325,976

23,304

6.95 %


1,336,133

23,332

6.98 %


1,230,290

23,897

7.68 %

Premium finance

267,294

5,743

8.50 %


259,241

5,585

8.62 %


260,513

5,746

8.73 %

Leases

384,191

10,287

10.59 %


395,161

10,198

10.32 %


419,764

11,982

11.29 %

Residential real estate (d)

974,203

12,226

5.02 %


956,049

12,215

5.11 %


925,629

11,460

4.95 %

Home equity lines of credit

239,531

4,540

7.60 %


233,522

4,382

7.61 %


225,362

4,612

8.23 %

Consumer, indirect

686,550

11,038

6.45 %


674,211

10,548

6.34 %


656,405

9,669

5.92 %

Consumer, direct

119,358

2,337

7.85 %


117,881

2,234

7.69 %


119,048

2,095

7.08 %

Total loans

6,443,460

108,840

6.71 %


6,354,462

107,326

6.77 %


6,240,672

112,476

7.16 %

Allowance for credit losses

(65,186)




(63,060)




(64,745)



Net loans

6,378,274




6,291,402




6,175,927



Total earning assets

8,375,813

126,687

6.01 %


8,277,356

124,824

6.04 %


8,224,393

131,122

6.34 %













Goodwill and other intangible assets

398,940




401,344




407,864



Other assets

518,534




516,767




548,197



Total assets

$ 9,293,287




$ 9,195,467




$ 9,180,454















Liabilities and Equity












Interest-bearing deposits:












Savings accounts

$    889,877

$        220

0.10 %


$    879,301

$       250

0.12 %


$    892,465

$       222

0.10 %

Governmental deposit accounts

811,822

4,874

2.41 %


781,782

4,652

2.41 %


795,913

5,594

2.83 %

Interest-bearing demand accounts

1,075,220

563

0.21 %


1,083,999

490

0.18 %


1,095,553

495

0.18 %

Money market deposit accounts

938,318

5,592

2.39 %


914,076

5,291

2.35 %


850,375

5,419

2.56 %

Retail certificates of deposit

1,997,992

18,235

3.66 %


1,939,364

18,434

3.85 %


1,743,238

18,423

4.25 %

Brokered deposits (e)

419,277

4,393

4.20 %


564,660

6,046

4.34 %


482,310

5,116

4.27 %

Total interest-bearing deposits

6,132,506

33,877

2.22 %


6,163,182

35,163

2.31 %


5,859,854

35,269

2.42 %

Short-term borrowings (e)

127,716

1,389

4.36 %


56,564

508

3.63 %


407,273

5,368

5.29 %

Long-term borrowings

233,998

3,564

6.07 %


237,100

3,615

6.13 %


234,961

3,520

5.98 %

Total borrowed funds

361,714

4,953

5.47 %


293,664

4,123

5.65 %


642,234

8,888

5.30 %

Total interest-bearing liabilities

6,494,220

38,830

2.40 %


6,456,846

39,286

2.47 %


6,502,088

44,157

2.73 %













Non-interest-bearing deposits

1,546,475




1,498,964




1,476,870



Other liabilities

105,339




116,797




140,042



Total liabilities

8,146,034




8,072,607




8,119,000



Stockholders' equity

1,147,253




1,122,860




1,061,454



Total liabilities and stockholders' equity

$ 9,293,287




$ 9,195,467




$ 9,180,454















Net interest income/spread (b)


$   87,857

3.61 %



$  85,538

3.57 %



$  86,965

3.61 %

Net interest margin (b)



4.15 %




4.12 %




4.18 %



(a)

Average balances are based on carrying value.

(b)

Interest income and yields are presented on a fully tax-equivalent basis, using a 21% statutory federal corporate income tax rate.

(c)

Average balances include nonaccrual and impaired loans. Interest income includes interest earned and received on nonaccrual loans prior to the loans being placed on nonaccrual status. Loan fees included in interest income were immaterial for all periods presented.

(d)

Loans held for sale are included in the average loan balance listed. Related interest income on loans originated for sale prior to the loan being sold is included in loan interest income.

(e)

Interest related to interest rate swap transactions is included, as appropriate to the transaction, in interest expense on short-term FHLB advances and interest expense on brokered deposits for the periods presented in which FHLB advances and brokered deposits were being utilized.

 

CONSOLIDATED AVERAGE BALANCE SHEETS AND NET INTEREST INCOME (Unaudited) -- (Continued)



Six Months Ended


June 30, 2025


June 30, 2024

(Dollars in thousands)

Balance

Income/

Expense

Yield/Cost


Balance

Income/

Expense

Yield/Cost

Assets








Short-term investments

$            87,780

$         1,938

4.45 %


$          160,238

$           4,424

5.55 %

Investment securities (a)(b)

1,903,997

33,406

3.51 %


1,851,485

31,378

3.39 %

Loans (b)(c):








Construction

324,325

11,507

7.06 %


334,196

12,998

7.69 %

Commercial real estate, other

2,090,163

66,693

6.35 %


2,075,468

73,662

7.02 %

Commercial and industrial

1,331,026

46,635

6.97 %


1,216,743

47,412

7.71 %

Premium finance

263,290

11,328

8.56 %


235,459

10,310

8.66 %

Leases

389,646

20,485

10.46 %


414,817

24,049

11.47 %

Residential real estate (d)

965,176

24,440

5.06 %


928,309

22,782

4.91 %

Home equity lines of credit

236,543

8,922

7.61 %


221,053

8,909

8.10 %

Consumer, indirect

680,415

21,586

6.40 %


656,324

18,950

5.81 %

Consumer, direct

118,623

4,572

7.77 %


121,569

4,194

6.94 %

Total loans

6,399,207

216,168

6.74 %


6,203,938

223,266

7.14 %

Allowance for credit losses

(64,129)




(62,990)



Net loans

6,335,078




6,140,948



Total earning assets

8,326,855

251,512

6.03 %


8,152,671

259,068

6.32 %









Goodwill and other intangible assets

400,135




409,292



Other assets

517,505




539,089



Total assets

$       9,244,495




$       9,101,052











Liabilities and Equity








Interest-bearing deposits:








Savings accounts

$          884,282

$            437

0.10 %


$          899,089

$              448

0.10 %

Governmental deposit accounts

796,885

9,526

2.41 %


779,906

10,679

2.75 %

Interest-bearing demand accounts

1,079,921

1,086

0.20 %


1,102,293

947

0.17 %

Money market deposit accounts

926,264

10,884

2.37 %


817,567

10,307

2.54 %

Retail certificates of deposit

1,968,840

36,669

3.76 %


1,662,832

34,323

4.15 %

Brokered  deposit (e)

491,567

10,440

4.28 %


525,653

11,015

4.21 %

Total interest-bearing deposits

6,147,759

69,042

2.26 %


5,787,340

67,719

2.35 %

Short-term borrowings (e)

92,336

1,896

4.13 %


398,052

10,406

5.24 %

Long-term borrowings

235,542

7,179

6.10 %


232,617

6,985

5.99 %

Total borrowed funds

327,878

9,075

5.55 %


630,669

17,391

5.12 %

Total interest-bearing liabilities

6,475,637

78,117

2.43 %


6,418,009

85,110

2.66 %









Non-interest-bearing deposits

1,522,851




1,489,304



Other liabilities

110,883




136,622



Total liabilities

8,109,371




8,043,935



Stockholders' equity

1,135,124




1,057,117



Total liabilities and stockholders' equity

$       9,244,495




$       9,101,052











Net interest income/spread (b)


$     173,395

3.60 %



$       173,958

3.66 %

Net interest margin (b)



4.14 %




4.22 %



(a)

Average balances are based on carrying value.

(b)

Interest income and yields are presented on a fully tax-equivalent basis, using a 21% statutory federal corporate income tax rate.

(c)

Average balances include nonaccrual and impaired loans. Interest income includes interest earned and received on nonaccrual loans prior to the loans being placed on nonaccrual status. Loan fees included in interest income were immaterial for all periods presented.

(d)

Loans held for sale are included in the average loan balance listed. Related interest income on loans originated for sale prior to the loan being sold is included in loan interest income.

(e)

Interest related to interest rate swap transactions is included, as appropriate to the transaction, in interest expense on short-term FHLB advances and interest expense on brokered deposits for the periods presented in which FHLB advances and brokered deposits were being utilized.

NON-US GAAP FINANCIAL MEASURES (Unaudited)

The following non-US GAAP financial measures used by Peoples provide information useful to investors in understanding Peoples' operating performance and trends, and facilitate comparisons with the performance of Peoples' peers. The following tables summarize the non-US GAAP financial measures derived from amounts reported in Peoples' consolidated financial statements:


Three Months Ended


Six Months Ended


June 30,


March 31,


June 30,


June 30,

(Dollars in thousands)

2025


2025


2024


2025


2024











Efficiency ratio:










Total non-interest expense

$           70,362


$            70,787


$           68,758


$ 141,149


$ 137,223

Less: amortization of other intangible assets

2,211


2,213


2,787


4,424


5,575

Adjusted total non-interest expense

68,151


68,574


65,971


136,725


131,648











Total non-interest income

26,880


27,099


23,704


53,979


49,483

Less: net loss on investment securities


(2)


(353)


(2)


(354)

Less: net loss on asset disposals and other transactions

(280)


(361)


(428)


(641)


(769)

Total non-interest income, excluding net gains and losses

27,160


27,462


24,485


54,622


50,606











Net interest income

87,577


85,255


86,613


172,832


173,253

Add: fully tax-equivalent adjustment (a)

280


283


352


563


705

Net interest income on a fully tax-equivalent basis

87,857


85,538


86,965


173,395


173,958











Adjusted revenue

$         115,017


$          113,000


$         111,450


$ 228,017


$ 224,564











Efficiency ratio

59.25 %


60.68 %


59.19 %


59.96 %


58.62 %



(a)

Tax effect is calculated using a 21% statutory federal corporate income tax rate.

 

NON-US GAAP FINANCIAL MEASURES (Unaudited) -- (Continued)



At or For the Three Months Ended


June 30,


March 31,


December 31,


September 30,


June 30,

(Dollars in thousands, except per share data)

2025


2025


2024


2024


2024











Tangible equity:










Total stockholders' equity

$     1,153,350


$     1,137,821


$     1,111,590


$     1,124,972


$     1,077,833

Less: goodwill and other intangible assets

397,785


400,099


402,422


403,922


406,417

Tangible equity

$        755,565


$        737,722


$        709,168


$        721,050


$        671,416











Tangible assets:










Total assets

$     9,540,608


$     9,246,000


$     9,254,247


$     9,140,471


$     9,226,461

Less: goodwill and other intangible assets

397,785


400,099


402,422


403,922


406,417

Tangible assets

$     9,142,823


$     8,845,901


$     8,851,825


$     8,736,549


$     8,820,044











Tangible book value per common share:










Tangible equity

$        755,565


$        737,722


$        709,168


$        721,050


$        671,416

Common shares outstanding

35,673,721


35,669,100


35,563,590


35,538,607


35,498,977











Tangible book value per common share

$            21.18


$            20.68


$            19.94


$            20.29


$            18.91











Tangible equity to tangible assets ratio:





Tangible equity

$        755,565


$        737,722


$        709,168


$        721,050


$        671,416

Tangible assets

$     9,142,823


$     8,845,901


$     8,851,825


$     8,736,549


$     8,820,044











Tangible equity to tangible assets

8.26 %


8.34 %


8.01 %


8.25 %


7.61 %

 


Three Months Ended


Six Months Ended


June 30,


March 31,


June 30,


June 30,

(Dollars in thousands)

2025


2025


2024


2025


2024











Pre-provision net revenue:










Income before income taxes

$               27,453


$               31,377


$               35,876


$           58,830


$           73,728

Add: provision for credit losses

16,642


10,190


5,683


26,832


11,785

Add: net loss on investment securities


2


353


2


354

Add: net loss on other assets

268


330


397


598


706

Add: net loss on other transactions

23


51


31


74


63

Less: net gain on OREO

11


20



31


Pre-provision net revenue

$               44,375


$               41,930


$               42,340


$           86,305


$           86,636

 

NON-US GAAP FINANCIAL MEASURES (Unaudited) -- (Continued)



Three Months Ended


Six Months Ended


June 30,


March 31,


June 30,


June 30,

(Dollars in thousands)

2025


2025


2024


2025


2024











Annualized net income adjusted for non-core items:





Net income

$         21,212


$             24,336


$        29,007


$    45,548


$     58,591

Add: net loss on investment securities


2


353


2


354

Less: tax effect of net loss on investment securities (a)



74



74

Add: net loss on asset disposals and other transactions

280


361


428


641


769

Less: tax effect of net loss on asset disposals and other transactions (a)

59


76


90


135


161

Add: acquisition-related expenses (benefit)





(84)

Less: tax effect of acquisition-related expenses (benefit) (a)





(18)

Net income adjusted for non-core items

$         21,433


$             24,623


$        29,624


$    46,056


$     59,413











Days in the period

91


90


91


181


182

Days in the year

365


365


366


365


366

Annualized net income

$         85,081


$             98,696


$      116,666


$    91,851


$   117,826

Annualized net income adjusted for non-core items

$         85,968


$             99,860


$      119,147


$    92,875


$   119,479

Return on average assets:










Annualized net income

$         85,081


$             98,696


$      116,666


$    91,851


$   117,826

Total average assets

$    9,293,287


$        9,195,467


$   9,180,454


$  9,244,495


$  9,101,052

Return on average assets

0.92 %


1.07 %


1.27 %


0.99 %


1.29 %

Return on average assets adjusted for non-core items:





Annualized net income adjusted for non-core items

$         85,968


$             99,860


$      119,147


$    92,875


$   119,479

Total average assets

$    9,293,287


$        9,195,467


$   9,180,454


$  9,244,495


$  9,101,052

Return on average assets adjusted for non-core items

0.93 %


1.09 %


1.30 %


1.00 %


1.31 %



(a)

Tax effect is calculated using a 21% statutory federal corporate income tax rate.

 

NON-US GAAP FINANCIAL MEASURES (Unaudited) -- (Continued)



For the Three Months Ended


Six Months Ended


June 30,


March 31,


June 30,


June 30,

(Dollars in thousands)

2025


2025


2024


2025


2024











Annualized net income excluding amortization of other intangible assets:





Net income

$         21,212


$        24,336


$        29,007


$        45,548


$         58,591

Add: amortization of other intangible assets

2,211


2,213


2,787


4,424


5,575

Less: tax effect of amortization of other intangible assets (a)

464


465


585


929


1,171

Net income excluding amortization of other intangible assets

$         22,959


$        26,084


$        31,209


$        49,043


$         62,995











Days in the period

91


90


91


181


182

Days in the year

365


365


366


365


366

Annualized net income

$         85,081


$        98,696


$      116,666


$        91,851


$       117,826

Annualized net income excluding amortization of other intangible assets

$         92,088


$      105,785


$      125,522


$        98,899


$       126,682











Average tangible equity:





Total average stockholders' equity

$    1,147,253


$   1,122,860


$   1,061,454


$   1,135,124


$    1,057,117

Less: average goodwill and other intangible assets

398,940


401,344


407,864


400,135


409,292

Average tangible equity

$       748,313


$      721,516


$      653,590


$      734,989


$       647,825











Return on average stockholders' equity ratio:






Annualized net income

$         85,081


$        98,696


$      116,666


$        91,851


$       117,826

Average stockholders' equity

$    1,147,253


$   1,122,860


$   1,061,454


$   1,135,124


$    1,057,117











Return on average stockholders' equity

7.42 %


8.79 %


10.99 %


8.09 %


11.15 %







Return on average tangible equity ratio:






Annualized net income excluding amortization of other intangible assets

$         92,088


$      105,785


$      125,522


$        98,899


$       126,682

Average tangible equity

$       748,313


$      721,516


$      653,590


$      734,989


$       647,825











Return on average tangible equity

12.31 %


14.66 %


19.21 %


13.46 %


19.55 %



(a)

Tax effect is calculated using a 21% statutory federal corporate income tax rate.

 

Cision View original content:https://www.prnewswire.com/news-releases/peoples-bancorp-inc-announces-second-quarter-2025-results-302509930.html

SOURCE Peoples Bancorp Inc.

FAQ

What was Peoples Bancorp's (PEBO) earnings per share in Q2 2025?

Peoples Bancorp reported earnings of $0.59 per diluted share in Q2 2025, down from $0.68 in Q1 2025 and $0.82 in Q2 2024.

How much did PEBO's loan portfolio grow in Q2 2025?

PEBO's loan portfolio grew by $173.1 million, representing an 11% annualized growth rate compared to Q1 2025.

What was Peoples Bancorp's net interest margin in Q2 2025?

PEBO's net interest margin was 4.15% in Q2 2025, an increase from 4.12% in Q1 2025.

How much was PEBO's provision for credit losses in Q2 2025?

PEBO recorded a provision for credit losses of $16.6 million in Q2 2025, up from $10.2 million in Q1 2025.

What was Peoples Bancorp's efficiency ratio in Q2 2025?

PEBO's efficiency ratio improved to 59.3% in Q2 2025, compared to 60.7% in Q1 2025.

How did PEBO's deposits change in Q2 2025?

Total deposits decreased by $97.5 million (1%) in Q2 2025, primarily due to decreases in governmental deposit accounts and money market deposit accounts.
Peoples Bancorp Inc

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