Peoples Bancorp (PEBO)2025-01-21 13:36Net Income and Profitability - Net income for Q4 2024 was $26.9 million, a decrease from $31.7 million in Q3 2024 and $33.8 million in Q4 2023[1] - For the full year 2024, net income was $117.2 million, compared to $113.4 million in 2023[1] - Net income for the year ended December 31, 2024, was $117.21 million, up from $113.36 million in 2023, a 3.4% increase[68] - Net income for the three months ended December 31, 2024, was $26,930 thousand, compared to $31,684 thousand in the previous quarter and $33,825 thousand in the same period last year[99] - Annualized net income adjusted for non-core items for the three months ended December 31, 2024, was $116,181 thousand, compared to $125,972 thousand in the previous quarter and $145,127 thousand in the same period last year[99] - Net income excluding amortization of other intangible assets for the three months ended December 31, 2024, was $29,142 thousand, compared to $33,885 thousand in the previous quarter and $36,409 thousand in the same period last year[103] - Annualized net income excluding amortization of other intangible assets for the three months ended December 31, 2024, was $115,934 thousand, compared to $134,803 thousand in the previous quarter and $144,449 thousand in the same period last year[103] Net Interest Income and Margin - Net interest income for Q4 2024 decreased by $2.4 million (3%) compared to Q3 2024, driven by lower accretion income[4] - Net interest margin for Q4 2024 decreased to 4.15% from 4.27% in Q3 2024[4] - Net interest margin for Q4 2024 was 4.15%, down from 4.43% in Q4 2023[64] - Net interest income for the year ended December 31, 2024, was $348.70 million, up from $339.37 million in 2023, a 2.7% increase[68] - Net interest income for Q4 2024 was $86,822 thousand, compared to $88,734 thousand in Q4 2023, with a net interest margin of 4.15%[86] - Net interest income on a fully tax-equivalent basis for Q4 2024 was $86.82 million, down from $88.73 million in Q4 2023[94] - Net interest income for the year ended December 31, 2024, was $350,009 thousand, with a net interest margin of 4.21%[89] Non-Interest Income and Expense - Total non-interest income, excluding net gains and losses, increased by $1.2 million (5%) in Q4 2024 compared to Q3 2024[4] - Total non-interest expense increased by $4.4 million (7%) in Q4 2024 compared to Q3 2024[4] - Non-interest expense for Q4 2024 was $70.5 million, compared to $66.1 million in Q3 2024 and $67.7 million in Q4 2023[25] - Total non-interest income for the year ended December 31, 2024, was $99.37 million, compared to $87.41 million in 2023, a 13.7% increase[68] - Core non-interest expense for Q4 2024 was $69.36 million, compared to $66.41 million in Q4 2023[94] - Total non-interest income for Q4 2024 was $25.09 million, compared to $24.13 million in Q4 2023[94] Loan and Lease Balances - Period-end total loan and lease balances increased by $86.2 million (5% annualized) in Q4 2024 compared to Q3 2024[4] - Total loan and lease balances at December 31, 2024 increased by $86.2 million (5% annualized) compared to September 30, 2024, driven by $97.5 million growth in commercial and industrial loans[32] - Total loan and lease balances at December 31, 2024 increased by $198.8 million compared to December 31, 2023, driven by organic growth in commercial and industrial loans ($162.7 million) and premium finance portfolios ($66.3 million)[33] - Loans and leases, net of deferred fees and costs, as of December 31, 2024, were $6.36 billion, compared to $6.16 billion in 2023, a 3.2% increase[73] - Total loans and leases increased to $6,358,003 thousand in December 2024, up from $6,159,196 thousand in December 2023[79] - Total loans increased to $6,241,228 thousand in Q4 2024, up from $6,094,217 thousand in Q4 2023, with a yield of 7.01%[86] - Total loans for the year ended December 31, 2024, averaged $6,238,070 thousand, yielding 7.14%, compared to $5,590,453 thousand in 2023 with a yield of 6.79%[89] Deposit Balances - Period-end total deposit balances increased by $111.9 million (2%) in Q4 2024 compared to Q3 2024[5] - Total deposits increased by $111.9 million compared to September 30, 2024, driven by increases in brokered certificates of deposit ($59.1 million), non-interest bearing deposits ($54.2 million), and retail certificates of deposit ($37.3 million)[41] - Period-end deposit balances increased by $442.8 million (6%) compared to December 31, 2023, primarily due to a $478.0 million increase in retail certificates of deposit[42][43] - Retail deposit balances accounted for 79% of total deposits at December 31, 2024, while commercial deposits made up 21%[44] - Uninsured deposits were 26% of total deposits at December 31, 2024, with $656.9 million (33%) of uninsured deposits collateralized by investment securities[45] - Average deposit balances increased by $211.4 million (3%) compared to the linked quarter and $509.3 million (7%) compared to Q4 2023[46] - Total deposits as of December 31, 2024, were $7.60 billion, up from $7.15 billion in 2023, a 6.3% increase[75] - Total deposits grew to $7,595,079 thousand in December 2024, compared to $7,152,297 thousand in December 2023[79] - Total demand deposits as a percent of total deposits were 34.14% in December 2024, down from 37.92% in December 2023[79] - Total interest-bearing deposits grew to $6,061,069 thousand in Q4 2024, up from $5,498,566 thousand in Q4 2023, with a cost of 2.44%[86] Credit Quality and Provisions - Provision for credit losses in Q4 2024 was $6.3 million, compared to $6.7 million in Q3 2024 and $1.3 million in Q4 2023[12] - Nonperforming assets decreased by $20.8 million (30%) compared to Q3 2024 but increased by $9.6 million (24%) compared to Q4 2023[36] - Criticized loans increased by $3.7 million (2%) compared to Q3 2024 and $6.1 million (3%) compared to Q4 2023, primarily due to loan downgrades[37] - Classified loans decreased by $4.4 million (3%) compared to Q3 2024 but increased by $8.8 million (7%) compared to Q4 2023, driven by loan and lease downgrades[38] - Annualized net charge-offs increased to 0.61% of average total loans in Q4 2024, up from 0.38% in the linked quarter and 0.23% in Q4 2023, driven by higher charge-offs in North Star Leasing[39] - The allowance for credit losses decreased by $3.3 million compared to September 30, 2024, but increased by $1.3 million compared to December 31, 2023, with the allowance ratio at 1.00% of total loans as of December 31, 2024[40] - Net charge-offs for the year ended December 31, 2024, were $23,223 thousand, compared to $8,547 thousand in the previous year[82] - Provision for credit losses for the year ended December 31, 2024, was $24,787 thousand, up from $15,174 thousand in the previous year[82] - Nonperforming assets (NPAs) as a percent of total assets decreased to 0.53% in December 2024 from 0.43% in December 2023[79] Investment Securities - Available-for-sale investment securities decreased by $2.9 million compared to Q3 2024 but increased by $35.2 million compared to Q4 2023[28] - Held-to-maturity investment securities increased by $81.2 million compared to Q3 2024 and $91.1 million compared to Q4 2023[29] - Investment securities averaged $1,910,266 thousand in Q4 2024, yielding 3.42%, compared to $1,768,033 thousand in Q4 2023 with a yield of 3.23%[86] Capital and Equity - Total stockholders' equity decreased by $13.4 million (1%) compared to September 30, 2024, but increased by $58.1 million (6%) compared to December 31, 2023[47][48] - The tier 1 risk-based capital ratio was 12.40% at December 31, 2024, compared to 12.59% at September 30, 2024, and 12.37% at December 31, 2023[49] - Book value per common share was $31.26 at December 31, 2024, compared to $31.65 at September 30, 2024, and $29.83 at December 31, 2023[50] - Total stockholders' equity as of December 31, 2024, was $1.11 billion, up from $1.05 billion in 2023, a 5.5% increase[76] - Common equity tier 1 capital ratio improved to 11.96% in December 2024 from 11.56% in December 2023[79] - Total risk-based capital ratio (tier 1 and tier 2) increased to 13.59% in December 2024 from 13.17% in December 2023[79] - Total stockholders' equity to total assets ratio increased to 12.01% in December 2024 from 11.50% in December 2023[79] - Tangible equity as of December 31, 2024, was $709.17 million, up from $641.36 million in December 2023[96] - Tangible book value per common share increased to $19.94 in Q4 2024 from $18.16 in Q4 2023[96] - Tangible equity to tangible assets ratio was 8.01% in Q4 2024, up from 7.33% in Q4 2023[96] Earnings Per Share and Ratios - Basic earnings per common share for Q4 2024 were $0.77, down from $0.97 in Q4 2023[64] - Diluted earnings per common share for Q4 2024 were $0.76, compared to $0.96 in Q4 2023[64] - Return on average stockholders' equity for Q4 2024 was 9.56%, down from 13.39% in Q4 2023[64] - Return on average tangible equity for Q4 2024 was 16.15%, compared to 24.45% in Q4 2023[64] - Efficiency ratio for Q4 2024 was 59.57%, up from 55.98% in Q4 2023[64] - Dividend payout ratio for Q4 2024 was 52.79%, compared to 41.75% in Q4 2023[64] - Book value per common share at the end of Q4 2024 was $31.26, up from $29.83 at the end of Q4 2023[64] - Tangible book value per common share at the end of Q4 2024 was $19.94, compared to $18.16 at the end of Q4 2023[64] - Earnings per common share (diluted) for the year ended December 31, 2024, was $3.31, compared to $3.44 in 2023, a 3.8% decrease[71] - Return on average stockholders' equity for the three months ended December 31, 2024, was 9.56%, compared to 11.46% in the previous quarter and 13.39% in the same period last year[103] - Return on average tangible equity for the three months ended December 31, 2024, was 16.15%, compared to 19.40% in the previous quarter and 24.45% in the same period last year[103] Asset and Liability Management - Total assets as of December 31, 2024, were $9.25 billion, compared to $9.16 billion in 2023, a 1.1% increase[77] - Cash and cash equivalents as of December 31, 2024, were $217.66 million, down from $426.72 million in 2023, a 49.0% decrease[73] - Total earning assets averaged $8,208,999 thousand in Q4 2024, yielding 6.20%, up from $7,858,046 thousand in Q4 2023 with a yield of 6.29%[86] - Total liabilities and stockholders' equity reached $9,146,057 thousand in Q4 2024, compared to $8,826,655 thousand in Q4 2023[86] - Total assets as of December 31, 2024, were $9.25 billion, up from $9.16 billion in December 2023[96] Other Financial Metrics - Accretion income, net of amortization expense, was $4.9 million in Q4 2024, down from $8.1 million in Q3 2024 and $9.3 million in Q4 2023[9] - The efficiency ratio for Q4 2024 was 59.6%, up from 55.1% in Q3 2024 and 56.0% in Q4 2023, primarily due to lower revenue[25][26] - Income tax expense for Q4 2024 was $7.9 million with an effective tax rate of 22.7%, down from $9.2 million in Q3 2024 and $9.7 million in Q4 2023[27] - Closing price of common shares at the end of Q4 2024 was $31.69, down from $33.76 at the end of Q4 2023[64] - Total interest income for the year ended December 31, 2024, was $520.78 million, compared to $439.40 million in 2023, reflecting an 18.5% increase[68] - Trust assets under administration and management stood at $2,061,267 thousand in December 2024, slightly down from $2,124,320 thousand in September 2024[85] - Adjusted revenue for Q4 2024 was $113.65 million, slightly down from $115.08 million in Q4 2023[94] - Pre-provision net revenue for Q4 2024 was $42.86 million, down from $47.03 million in Q4 2023[98] - Return on average assets for the three months ended December 31, 2024, was 1.17%, compared to 1.38% in the previous quarter and 1.52% in the same period last year[99] - Return on average assets adjusted for non-core items for the three months ended December 31, 2024, was 1.27%, compared to 1.38% in the previous quarter and 1.64% in the same period last year[99]