Financial Performance - Net income was $243 million, resulting in $068 of diluted earnings per share[11] - Deposit balances increased by 2%, driven by higher money markets and governmental balances, while brokered CDs were reduced by $96 million[11] - Book value per share grew 2%, while tangible book value per share increased 4%, to $3190 and $2068, respectively[11] Loan Portfolio - Total loan balances grew at an annualized rate of 4% compared to December 31, 2024[15] - At March 31, 2025, 47% of loans were fixed rate, with the remaining 53% at a variable rate[15] - North Star Leasing balances comprised only 3% of the total loan portfolio at March 31, 2025[18] Asset Quality - Key asset quality metrics improved during the first quarter of 2025[21] - The annualized net charge-off rate declined to 52 basis points compared to 61 basis points for the fourth quarter of 2024[21] - Criticized loans declined $15 million compared to year-end, while classified loans were down $5 million[21] Net Interest Income and Non-Interest Income/Expense - Net interest income declined 1% compared to the linked quarter, attributable to a $14 million decline in accretion income[26] - Non-interest income, excluding gains and losses, grew 2% compared to the linked quarter[29] - Non-interest expense increased 2% compared to the linked quarter, impacted by one-time costs[33] 2025 Outlook - Loan growth is projected to be between 4% and 6% for the full year of 2025, compared to 2024[47]

Financial Data and Key Metrics Changes - The diluted earnings per share for the first quarter were $0.68, with a 2% increase in book value per share to $31.90 and a 4% increase in tangible book value per share to $20.68 [6][8] - Annualized loan growth was over 4%, with deposit balances growing 2%, driven by higher money market and governmental deposit account balances [7][8] - Reported net interest income decreased by 1% compared to the linked quarter, while net interest margin decreased by 3 basis points [9][20] Business Line Data and Key Metrics Changes - Commercial real estate loans led the increase in loan growth, contributing $75 million, while residential real estate loans increased by $13 million and consumer indirect loans grew by $10 million [17] - Fee-based income grew over 2%, primarily due to performance-based insurance commissions [9][23] - Nonperforming assets decreased by over $3 million, representing 50 basis points of total assets compared to 53 basis points at year-end [11][12] Market Data and Key Metrics Changes - The company experienced a decline in consumer confidence nationally, but this did not translate into reduced consumer demand in its lines of business [14][70] - The deposit composition was 76% in retail deposit balances and 24% in commercial deposit balances, with average retail client deposit relationships at $26,000 [30][29] Company Strategy and Development Direction - The company aims to achieve positive operating leverage for 2025 compared to 2024, with expectations of loan growth between 4% and 6% [38][40] - The management is committed to maintaining high standards and has received recognition for being a top workplace and one of America's Best Banks [36][37] - The company is actively engaged in M&A discussions but is focused on strategic patience, preferring to find the right partner rather than rushing into acquisitions [73][74] Management's Comments on Operating Environment and Future Outlook - Management noted that while there is uncertainty around tariffs, the actual impact on clients and business has been nominal so far [13][14] - The company expects to normalize the provision for credit losses in the second half of 2025, with a slight reduction anticipated in the second quarter [40][101] - Management expressed optimism regarding loan demand and production, particularly in the small business space [46][70] Other Important Information - The company announced an increase in its quarterly dividend for the tenth consecutive year, now at $0.41 per share, resulting in an annualized yield of 5.95% [31][32] - The efficiency ratio was reported at 60.7%, up from 59.6% for the linked quarter, driven by higher costs and lower accretion income [25][26] Q&A Session Summary Question: Insights on loan growth outlook amid tariff discussions - Management indicated strong visibility into the second quarter pipeline and expressed optimism despite potential macroeconomic impacts [44][46] Question: Timeline for normalizing charge-offs in leasing - Management expects charge-offs to continue declining throughout the year, with a significant reduction in high balance accounts contributing to this trend [50][51] Question: Fee income guidance reduction drivers - The reduction was attributed to softer performance-based insurance commissions and changes in mortgage income expectations [55][56] Question: Consumer behavior changes due to tariffs - Management noted increased indirect lending and strong mortgage pipeline activity, indicating consumer confidence in securing loans [68][70] Question: M&A strategy and geographic focus - The company aims to expand in Ohio, Kentucky, West Virginia, and Virginia, while remaining patient in finding the right acquisition opportunities [74][120]

Financial Data and Key Metrics Changes - The diluted earnings per share for the first quarter were 68 cents, with annualized loan growth exceeding 4% compared to the linked quarter [6][7] - Asset quality metrics improved, including a reduction in the annualized net charge-off rate to 52 basis points from 61 basis points in the previous quarter [9][10] - Deposit balances grew by 2%, driven by higher money market and governmental deposit account balances, while core deposit growth exceeded 3% [7][19] - The book value per share increased by 2% to $31.9, and tangible book value per share improved by 4% to $20.68 [7][21] - The net interest income reported was down 1% compared to the linked quarter, with a net interest margin decrease of three basis points [8][15] Business Line Data and Key Metrics Changes - Commercial real estate loans contributed $75 million to loan growth, while residential real estate loans increased by $13 million and consumer indirect loans grew by $10 million [13][14] - The small ticket leasing portfolio experienced net charge-offs, which were a significant driver of the overall charge-off rate [9][40] - Fee-based income grew over 2%, primarily due to performance-based insurance commissions [16] Market Data and Key Metrics Changes - The overall allowance for credit losses increased to 1.01% of total loans, with a provision for credit losses rising nearly $4 million compared to the linked quarter [11][12] - The company noted that despite national declines in consumer confidence, there was no material impact on consumer demand in their lines of business [12] Company Strategy and Development Direction - The company announced an increase in its quarterly dividend for the tenth consecutive year, reflecting a commitment to shareholder returns [8][21] - Management emphasized a focus on maintaining high standards for associates and a commitment to community service, which they believe drives solid results and shareholder value [24][25] - The company is actively engaged in evaluating acquisition opportunities but is committed to a strategic patience approach, preferring to find the right partner rather than rushing into a deal [68][112] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism regarding loan growth despite macroeconomic uncertainties, citing strong visibility into the second quarter pipeline [35][36] - The company anticipates a normalization of the provision for credit losses in the second half of 2025, aligning with historical rates [27][94] - Management noted that they are prepared to adjust operating expenses based on revenue scenarios, maintaining flexibility in their expense management [99] Other Important Information - The efficiency ratio increased to 60.7% from 59.6% in the linked quarter, driven by higher costs and lower accretion income [18] - The investment portfolio declined by $40 million, representing 20.3% of total assets, as proceeds were reinvested into loan growth [18][19] Q&A Session Summary Question: Loan growth outlook and risks - Management indicated strong visibility into the second quarter pipeline and expressed optimism despite potential impacts from tariffs [35][36] Question: North Star leasing and charge-offs - Management expects charge-offs to continue declining throughout the year, with a focus on improving credit quality [40][41] Question: Fee income guidance reduction - The reduction was attributed to softer performance in insurance income and changes in mortgage-related income expectations [50][51] Question: Consumer behavior in response to tariffs - Management noted an increase in indirect lending and consumer deposits, indicating a shift in consumer behavior towards securing loans before potential price increases [64][65] Question: Acquisition strategy and market expansion - Management expressed a desire to expand in existing markets and evaluate opportunities in adjacent regions, emphasizing a strategic approach to acquisitions [68][112]

Core Insights - Peoples Bancorp reported revenue of $112.35 million for Q1 2025, a year-over-year decline of 0.4% and a surprise of -1.05% compared to the Zacks Consensus Estimate of $113.55 million [1] - The EPS for the same quarter was $0.69, down from $0.85 a year ago, with an EPS surprise of -5.48% against the consensus estimate of $0.73 [1] Financial Performance Metrics - Total earning assets averaged $8.28 billion, slightly below the estimated $8.39 billion [4] - Net Interest Margin was reported at 4.1%, matching the average estimate [4] - Efficiency ratio stood at 60.7%, better than the estimated 63.6% [4] - Net charge-offs as a percentage of average total loans (annualized) were 0.5%, slightly above the estimate of 0.4% [4] - Mortgage banking income was $0.40 million, exceeding the average estimate of $0.33 million [4] - Total Non-interest income was $27.10 million, below the estimated $28.11 million [4] - Electronic banking income was $5.89 million, lower than the average estimate of $6.37 million [4] - Bank owned life insurance income was $1.13 million, above the estimate of $0.80 million [4] - Insurance income was $6.05 million, slightly below the estimate of $6.32 million [4] - Deposit account service charges were $4.02 million, below the estimate of $4.53 million [4] - Net Interest Income was reported at $85.26 million, matching the average estimate [4] - Net interest income on a fully tax-equivalent basis was $85.54 million, slightly above the estimate of $85.45 million [4] Stock Performance - Shares of Peoples Bancorp have returned -9.2% over the past month, compared to the Zacks S&P 500 composite's -8.9% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Company Performance - Peoples Bancorp reported quarterly earnings of $0.69 per share, missing the Zacks Consensus Estimate of $0.73 per share, and down from $0.85 per share a year ago, representing an earnings surprise of -5.48% [1] - The company posted revenues of $112.35 million for the quarter, missing the Zacks Consensus Estimate by 1.05%, and down from $112.82 million year-over-year [2] - Over the last four quarters, the company has surpassed consensus EPS estimates two times and topped consensus revenue estimates two times [2] Stock Performance - Peoples Bancorp shares have declined approximately 13.1% since the beginning of the year, compared to a decline of -12.3% for the S&P 500 [3] - The current status of estimate revisions for Peoples Bancorp is mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Future Outlook - The current consensus EPS estimate for the coming quarter is $0.80 on revenues of $113.7 million, and for the current fiscal year, it is $3.23 on revenues of $459.55 million [7] - The outlook for the industry, specifically the Banks - Midwest sector, is favorable, ranking in the top 13% of over 250 Zacks industries, suggesting potential for outperformance [8] Related Company - Civista Bancshares, another company in the same industry, is expected to report quarterly earnings of $0.50 per share, reflecting a year-over-year change of +22%, with revenues anticipated to be $40.09 million, up 8.7% from the previous year [9][10]

Company Overview - Peoples Bancorp Inc. is a diversified financial services holding company offering a complete line of banking, trust and investment, insurance, premium financing, and equipment leasing solutions through its subsidiaries [4] - The company has been headquartered in Marietta, Ohio since 1902, showcasing a heritage of financial stability, growth, and community impact [4] - As of December 31, 2024, Peoples had total assets of $9.3 billion and operated 148 locations, including 129 full-service bank branches across Ohio, Kentucky, West Virginia, Virginia, Washington D.C., and Maryland [4] Upcoming Earnings Release - Peoples intends to release its first quarter 2025 earnings before the market opens on Tuesday, April 22, 2025 [1] - A facilitated conference call with analysts, media, and individual investors will take place at 11:00 a.m. Eastern Daylight Time on the same date [1] - The conference call will feature commentary from Tyler Wilcox, President and CEO, and Kathryn Bailey, CFO and Treasurer, followed by a question and answer period [2] Participation Details - Individuals wishing to participate in the live conference call are encouraged to call or sign in at least 15 minutes prior to the scheduled start time [3] - The dial-in number for the call will be (866) 890-9285 [2] - A simultaneous webcast of the conference call audio will be available in listen-only mode, with an archived replay accessible online via the "Investor Relations" section of Peoples' website for one year [2]

Acquisition and Mergers - Peoples Bancorp Inc. completed the acquisition of Limestone Bancorp Inc. in an all-stock merger, resulting in the issuance of 6,827,668 common shares valued at $177.9 million[18]. Loan Portfolio Composition - As of December 31, 2024, commercial loans represented approximately 60.3% of Peoples Bank's total loan portfolio, with commercial and industrial loans comprising 21.2%[23][28]. - The portfolio of insurance premium finance loans increased to 4.2% of total loans at December 31, 2024, up from 3.3% at December 31, 2023[34]. - Peoples Bank's construction loans accounted for 5.2% of total loans at December 31, 2024, compared to 5.9% at December 31, 2023[30]. - Peoples Bank's commercial real estate loans comprised 33.9% of total loans at December 31, 2024, down from 35.7% at December 31, 2023[29]. - At December 31, 2024, 61.1% of the commercial loan portfolio consisted of variable interest rate loans[25]. - Peoples Bank's equipment leases and financing agreements represented 6.4% of total loans at December 31, 2024, slightly down from 6.7% at December 31, 2023[35]. - As of December 31, 2024, residential real estate loans comprised 13.2% of total loans, up from 12.9% in 2023, with $2.3 million held for sale and $346.2 million serviced[37]. - Home equity lines of credit represented 3.7% of total loans at December 31, 2024, compared to 3.4% in 2023, with 99.2% of the portfolio in variable interest rate loans[41]. - Consumer indirect loans accounted for 10.5% of total loans as of December 31, 2024, down from 10.8% in 2023[44]. - Peoples Bank's consumer direct loans comprised 1.7% of total loans at December 31, 2024, down from 2.1% in 2023[46]. Financial Performance and Strategy - The company aims to improve operating efficiency by focusing resources on offices and markets with the greatest earnings opportunities[17]. - The share repurchase program authorized on January 28, 2021, allowed for the purchase of up to $30.0 million in common shares, with $3.0 million repurchased in 2024[19]. - Investment securities made up 20.7% of total assets at December 31, 2024, increasing from 19.6% in 2023[49]. - The unfunded commitment related to overdraft services was $79.6 million as of December 31, 2024[48]. Employee and Workplace Initiatives - As of December 31, 2024, Peoples had 1,479 full-time equivalent employees, a slight increase from 1,478 in 2023[59]. - Peoples has implemented a $15 minimum wage across the organization, with all associates meeting or exceeding this threshold as of January 2023[59]. - Peoples has been recognized as one of America's Best Workplaces and Best Regional Banks in 2024, and has received accolades as a "Best Bank to Work For" from American Banker for four consecutive years[59]. Regulatory and Compliance Matters - The FDIC insures deposits at Peoples Bank up to $250,000 per depositor, backed by the full faith and credit of the U.S. government[73]. - The FDIC has established a designated reserve ratio (DRR) of 2.0% for the Deposit Insurance Fund (DIF), with a statutory minimum of 1.35% to be achieved by September 30, 2028[77]. - The FDIC projected that the DIF reserve ratio increased from 1.15% as of December 31, 2023, to 1.21% as of June 30, 2024, indicating progress towards the statutory minimum[78]. - The BHC Act requires bank holding companies to be "well managed" and "well capitalized" to engage in new activities or acquisitions[81]. - To be classified as "well capitalized," a bank must maintain a common equity tier 1 capital ratio of at least 6.5% and a total risk-based capital of at least 10.0%[102]. - The Basel III Capital Rules set minimum capital ratios: common equity tier 1 capital ratio of 4.5%, tier 1 risk-based capital ratio of 6.0%, and total risk-based capital ratio of 8.0%[92]. - The Federal Reserve Board has adopted risk-based capital guidelines that consider off-balance sheet exposures in evaluating capital adequacy[91]. - The regulatory agencies have a system of prompt corrective action for undercapitalized institutions, categorized into five capital levels[89]. - The Federal Reserve may require financial holding companies to contribute additional capital to undercapitalized subsidiary banks[84]. Cybersecurity and Data Protection - Peoples Bank is monitoring state-level privacy and cybersecurity regulations as they continue to evolve[126]. - Peoples has not detected significant data loss or material financial losses related to cybersecurity attacks, but risks remain high due to evolving threats and increased use of technology-based services[129]. - The company employs a layered defensive approach to manage cybersecurity controls, including encryption and multi-factor authentication technology[129]. - Cybersecurity incidents could lead to increased costs for remediation, litigation, and regulatory scrutiny, negatively impacting Peoples' financial results[171]. - Federal regulators require banking organizations to notify them of computer-security incidents within 36 hours of determination[125]. - The SEC's new rules require public companies to disclose material cybersecurity incidents within four business days[128]. Economic and Market Risks - Inflation and rising interest rates have led to a decline in the trading value of previously issued government securities, impacting Peoples' business operations and customer repayment abilities[152]. - The macroeconomic environment is susceptible to global events, with ongoing geopolitical conflicts potentially causing significant market disruptions and volatility[150][151]. - Economic conditions such as high inflation and elevated interest rates could adversely affect borrowers' ability to make loan payments, impacting Peoples' financial condition[184]. - Changes in interest rates could adversely affect Peoples' profitability, as net interest income is significantly dependent on the difference between interest income and interest expense[142]. - Peoples' loan portfolio is significantly exposed to credit risk, particularly from commercial loans, which are more susceptible to defaults during economic downturns[183]. Capital and Liquidity Considerations - Peoples may need to seek additional capital in the future, but availability is uncertain and could adversely affect financial condition and operations[192]. - The company believes it has effective asset and liability management strategies to mitigate interest rate risk, although unexpected changes could adversely affect financial results[144]. - Peoples' ability to pay dividends is limited and may be affected by regulatory constraints, impacting liquidity and financial condition[197]. - The accuracy of information from customers and counterparties is critical, as reliance on misleading financial statements could negatively impact financial results[198]. - Changes in accounting standards may materially impact how Peoples records and reports its financial condition and results of operations[207]. - Increases in FDIC insurance premiums may adversely affect Peoples Bank's earnings and ability to pay dividends[210]. Community and Social Responsibility - Peoples Bank received an overall "Satisfactory" rating in its most recent Community Reinvestment Act evaluation by the Federal Reserve Board[104]. - The Federal Reserve Board's final rule on the CRA, effective January 1, 2026, aims to enhance access to credit in low- and moderate-income communities[105].

Financial Data and Key Metrics - The company's fourth quarter 2024 earnings release and conference call presentation were issued and are available on the company's website under Investor Relations [4] Business Line Data and Key Metrics - No specific data or metrics related to individual business lines were provided in the content Market Data and Key Metrics - No specific data or metrics related to individual markets were provided in the content Company Strategy and Industry Competition - No specific information on company strategy or industry competition was provided in the content Management Commentary on Operating Environment and Future Outlook - Management believes that the forward-looking statements made during the call are based on reasonable assumptions within the bounds of their knowledge of the company's business and operations [3] - However, actual results may differ materially from these forward-looking statements due to a number of risks and uncertainties detailed in the company's SEC filings [2][3] Other Important Information - The call contains projections and forward-looking statements regarding the company's future financial performance or future events, which are based on management's current expectations [2] - The company disclaims any responsibility to update these forward-looking statements after the call, except as may be required by applicable legal requirements [3] Summary of Q&A Session - No specific questions or answers from the Q&A session were provided in the content

Financial Performance - Net income grew to $1172 million, or $331 of diluted EPS for 2024[12] - Deposit growth reached $443 million, representing a 6% increase[12] - Fee-based income experienced a 10% growth[12] - The efficiency ratio stood at 580%[12] Loan Portfolio - Total loan balances grew 5% annualized compared to September 30, 2024[16] - As of December 31, 2024, 47% of loans were fixed rate, with the remaining 53% at a variable rate[16] - North Star Leasing balances comprised only 3% of the total loan portfolio at December 31, 2024[19] Asset Quality - As of December 31, 2024, 987% of the loan portfolio was considered "current", compared to 985% at September 30, 2024[23] Net Interest Income - Net interest income declined 3% compared to the linked quarter, attributable to lower accretion income[27] - Accretion income added 23 basis points to net interest margin, compared to 39 basis points for the linked quarter[27] Non-Interest Income and Expense - For the full year of 2024, non-interest income increased 14%[31] - Core non-interest expense increased 4% compared to the linked quarter[37] 2025 Outlook - Loan growth is projected to be between 4% and 6% for the full year of 2025, compared to 2024[50]

Core Insights - Peoples Bancorp reported revenue of $111.63 million for the quarter ended December 2024, a decrease of 1.2% year-over-year, but exceeded the Zacks Consensus Estimate by 1.99% [1] - Earnings per share (EPS) were $0.82, down from $1.04 in the same quarter last year, with a surprise of 9.33% over the consensus estimate of $0.75 [1] Financial Performance Metrics - Total earning assets averaged $8.21 billion, slightly below the estimated $8.29 billion [4] - Net Interest Margin was reported at 4.2%, surpassing the average estimate of 4.1% [4] - Net charge-offs as a percentage of average total loans (annualized) were 0.6%, higher than the 0.4% average estimate [4] - Efficiency ratio stood at 59.6%, better than the average estimate of 61.9% [4] - Mortgage banking income was $0.17 million, significantly lower than the average estimate of $0.97 million [4] - Total Non-interest income was $25.09 million, slightly below the average estimate of $25.18 million [4] - Electronic banking income was $6.27 million, compared to the average estimate of $6.45 million [4] - Bank owned life insurance income was $1.22 million, exceeding the average estimate of $0.48 million [4] - Insurance income was reported at $4.52 million, slightly above the average estimate of $4.40 million [4] - Deposit account service charges were $4.50 million, close to the average estimate of $4.54 million [4] - Net Interest Income was $86.54 million, exceeding the average estimate of $84.74 million [4] - Net interest income on a fully tax-equivalent basis was $86.82 million, also above the average estimate of $84.85 million [4] Stock Performance - Shares of Peoples Bancorp have returned -2.6% over the past month, while the Zacks S&P 500 composite increased by 1.2% [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]