Peoples Bancorp (PEBO) - 2025 Q1 - Quarterly Results

Financial Performance - Net income for the first quarter of 2025 was $24.3 million, with earnings per diluted common share of$ 0.68, down from $26.9 million and$ 0.76 in the fourth quarter of 2024[1]. - Net income for Q1 2025 was $24,336,000, down 9.8% from$ 26,930,000 in Q4 2024 and down 17.7% from $29,584,000 in Q1 2024[82]. - Basic earnings per common share for Q1 2025 were$ 0.69, down from $0.85 in Q1 2024, representing a decrease of 18.82%[50]. - Diluted earnings per common share for Q1 2025 were$ 0.68, compared to $0.84 in Q1 2024, reflecting a decline of 19.05%[50]. - Annualized net income adjusted for non-core items for Q1 2025 was$ 99,860,000, a decrease of 14.0% from $116,181,000 in Q4 2024 and a decrease of 16.7% from$ 119,807,000 in Q1 2024[82]. - Return on average assets for Q1 2025 was 1.07%, down from 1.17% in Q4 2024 and 1.32% in Q1 2024[82]. - Return on average stockholders' equity for Q1 2025 was 8.79%, down from 9.56% in Q4 2024 and 11.30% in Q1 2024[86]. Income and Expenses - Net interest income decreased by $1.3 million, or 1%, to$ 85.3 million for the first quarter of 2025, with a net interest margin of 4.12%, down from 4.15% in the linked quarter[4][5]. - Total interest income for Q1 2025 was $124,542,000, a decrease of 3.5% from$ 128,793,000 in Q4 2024[56]. - Net interest income after provision for credit losses decreased to $75,065,000 in Q1 2025 from$ 80,269,000 in Q4 2024, reflecting a decline of 6.4%[56]. - Total non-interest income, excluding net gains and losses, increased by $0.6 million, or 2%, driven by a rise in insurance income due to seasonal commissions[12]. - Total non-interest income increased to$ 27,099,000 in Q1 2025, up 8.0% from $25,089,000 in Q4 2024[56]. - The efficiency ratio for the first quarter of 2025 was 60.7%, up from 59.6% in the linked quarter, reflecting higher non-interest expenses[17]. - The efficiency ratio improved to 60.68% for the three months ended March 31, 2025, compared to 59.57% in the previous quarter, indicating a slight increase in operational efficiency[77]. Credit Quality - The provision for credit losses increased to$ 10.2 million for the first quarter of 2025, compared to $6.3 million in the fourth quarter of 2024, negatively impacting earnings per diluted common share by$ 0.22[8][9]. - Provision for credit losses rose to $10,190,000 in Q1 2025, compared to$ 6,267,000 in Q4 2024, indicating a significant increase of 62.5%[67]. - Annualized net charge-offs were 0.52% of average total loans for Q1 2025, down from 0.61% in the linked quarter and up from 0.22% in Q1 2024[31]. - Nonperforming loans (NPLs) as a percentage of total loans decreased to 0.62% in Q1 2025 from 0.67% in Q4 2024[66]. - The allowance for credit losses increased to $65,232,000 in Q1 2025 from$ 63,348,000 in Q4 2024, indicating a rise in provisions[62]. - The allowance for credit losses as a percentage of NPLs increased to 163.77% in Q1 2025 from 148.13% in Q4 2024, indicating a stronger reserve position[66]. Assets and Liabilities - Total assets as of March 31, 2025, were $9,246,000,000, a slight decrease from$ 9,254,247,000 at the end of Q4 2024[62]. - Total stockholders' equity increased by $26.2 million, or 2%, compared to December 31, 2024, primarily due to net income of$ 24.3 million[38]. - Total stockholders' equity increased by $75.8 million, or 7%, compared to March 31, 2024, driven by net income of$ 112.0 million over the last twelve months[39]. - Total deposits increased to $7,734,749,000 in Q1 2025, up from$ 7,590,205,000 in Q4 2024, representing an increase of 1.9%[62]. - Total loan and lease balances increased by $70.5 million, or 4% annualized, compared to December 31, 2024, with significant growth in commercial real estate loans and residential real estate loans[3][23]. - Total average assets for Q1 2025 were$ 9,195,467,000, an increase from $9,146,057,000 in Q4 2024 and$ 9,021,651,000 in Q1 2024[82]. Market and Shareholder Information - Cash dividends declared per common share remained stable at $0.40 for both Q1 2025 and Q4 2024, up from$ 0.39 in Q1 2024[50]. - The dividend payout ratio increased to 58.46% in Q1 2025 from 46.46% in Q1 2024, reflecting a rise of 25.83%[50]. - The closing price of common shares at the end of Q1 2025 was $29.66, down from$ 29.61 in Q1 2024[50]. - Tangible book value per common share increased to $20.68 as of March 31, 2025, up from$ 19.94 at December 31, 2024, representing a growth of 3.70%[79].