PEOPLES BANCORP INC. ANNOUNCES SECOND QUARTER 2025 RESULTS
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.
- 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
- 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
On the positive side, the bank achieved strong loan growth of
However, the substantial increase in provision for credit losses to
Asset quality metrics show some concerning trends: criticized loans increased
The efficiency ratio improved slightly to
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.
"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
, or$2.3 million 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 to4.12% 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.
- Net interest margin increased to
- Peoples recorded a provision for credit losses of
for the second quarter of 2025, compared to a provision for credit losses of$16.6 million for the first quarter of 2025.$10.2 million - 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
for the second quarter of 2025 and$0.36 for the first quarter of 2025.$0.22
- 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
- Total non-interest income, excluding net gains and losses, decreased
, or$0.3 million 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
compared to the linked quarter.$0.4 million - 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 to60.7% for the linked quarter.
Balance Sheet Summary:
- Period-end total loan and lease balances at June 30, 2025, increased
, or$173.1 million 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
, 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.$17.9 million - Classified loans increased
compared to at March 31, 2025, driven by loan downgrades.$1.2 million
- Delinquency trends improved compared to the linked quarter as loans considered current comprised
- Period-end total deposit balances at June 30, 2025, decreased
, or$97.5 million 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% and83% of total deposit balances at June 30, 2025, and at March 31, 2025, respectively.
Net Interest Income
Net interest income was
Net interest income for the second quarter of 2025 increased
Accretion income, net of amortization expense, from acquisitions was
For the first six months of 2025, net interest income decreased
Accretion income, net of amortization expense, from acquisitions was
Provision for Credit Losses:
The provision for credit losses was
The provision for credit losses during the first six months of 2025 was
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
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
The net loss realized during the first six months of 2025 was
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
Compared to the second quarter of 2024, total non-interest income, excluding net gains and losses, increased
For the first six months of 2025, total non-interest income, excluding gains and losses, increased
Total Non-interest Expense:
Total non-interest expense decreased
Compared to the second quarter of 2024, total non-interest expense increased
For the first six months of 2025, total non-interest expense increased
The efficiency ratio for the second quarter of 2025 was
Income Tax Expense:
Peoples recorded income tax expense of
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
The held-to-maturity investment securities balance at June 30, 2025 increased
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
Loans and Leases:
The period-end total loan and lease balances at June 30, 2025, increased
The period-end total loan and lease balances at June 30, 2025, increased
The period-end total loan and lease balances at June 30, 2025, increased
Quarterly average total loan balances increased
Compared to the second quarter of 2024, quarterly average loan balances increased
Asset Quality:
Key asset quality metrics remained stable through the second quarter of 2025. Delinquency trends improved as loans considered current comprised
Criticized loans, which are those categorized as special mention, substandard or doubtful, increased
Classified loans, which are those categorized as substandard or doubtful, increased
Annualized net charge-offs were
At June 30, 2025, the allowance for credit losses increased
Deposits:
As of June 30, 2025, period-end total deposits decreased
As of June 30, 2025, period-end total deposits increased
Compared to June 30, 2024, period-end deposit balances increased
The percentages of retail deposit balances and commercial deposit balances of the total deposit balance were
Uninsured deposits were
Average deposit balances during the second quarter of 2025 increased
Stockholders' Equity:
Total stockholders' equity at June 30, 2025, increased
Total stockholders' equity at June 30, 2025, increased
Total stockholders' equity at June 30, 2025, increased
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
Peoples is a member of the Russell 3000 index of
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
- 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 |
(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 |
(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 |
(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 |
(27) | the potential deterioration of the |
(28) | the impact of natural disasters, pandemics, acts of war or terrorism, or other catastrophic events; |
(29) | the potential influence on the |
(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
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 |
(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 | |||
| 1,051,497 | 1,083,555 | |
Held-to-maturity investment securities, at amortized cost (fair value of | |||
| 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 |
(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 |
(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/ | Balance | Income/ Expense | Yield/ | Balance | Income/ Expense | Yield/ | ||
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 | |||||||||||
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 | |||||||||||
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 |
(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 |
(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 | ||||||
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 | ||||||
Efficiency ratio | 59.25 % | 60.68 % | 59.19 % | 59.96 % | 58.62 % |
(a) | Tax effect is calculated using a |
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 |
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 |
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SOURCE Peoples Bancorp Inc.