Peoples Bancorp (US:PEBO)2025-05-01 17:12Financial Performance - Peoples reported net income of $24.3 million for Q1 2025, down from $29.6 million in Q1 2024, representing a decrease in earnings per diluted common share from $0.84 to $0.68[166]. - The provision for credit losses was $10.2 million for Q1 2025, up from $6.3 million in the linked quarter and $6.1 million in Q1 2024, primarily driven by net charge-offs[169]. - Total stockholders' equity increased by $26.2 million compared to December 31, 2024, driven by net income of $24.3 million for the quarter[180]. - For the first quarter of 2025, net income was $24,336 thousand, a decrease from $26,930 thousand in the previous quarter and $29,584 thousand in the same quarter of 2024[234]. - Annualized net income adjusted for non-core items (after tax) for Q1 2025 was $99,860 thousand, down from $116,181 thousand in Q4 2024 and $119,807 thousand in Q1 2024[238]. Interest Income and Expenses - Net interest income for Q1 2025 was $85.3 million, a decrease of $1.4 million, or 2%, compared to Q1 2024, primarily due to lower accretion income[167]. - Total interest income decreased by $4,256 thousand for the three months ended March 31, 2025, compared to the previous quarter, primarily due to a decline in loan income[189]. - Total interest expense increased by $2,972 thousand for the three months ended March 31, 2025, compared to the previous quarter, driven by higher costs in deposit accounts[189]. - FTE net interest income for Q1 2025 was $85.538 million, compared to $86.822 million in the linked quarter[185]. Asset and Liability Management - Total assets remained flat at $9.25 billion as of March 31, 2025, compared to December 31, 2024, with total loan and lease balances increasing by $70.5 million, or 4% annualized[178]. - Total liabilities decreased to $8.11 billion at March 31, 2025, down from $8.14 billion at December 31, 2024, primarily due to a $174.2 million decrease in short-term borrowings[179]. - The allowance for credit losses was $63,060 thousand as of March 31, 2025, compared to $65,798 thousand at December 31, 2024[187]. - The amount of excess cash reserves maintained at the FRB of Cleveland decreased to $52.6 million at March 31, 2025, compared to $104.7 million at December 31, 2024[241]. Loan Portfolio - Total loans reached $6,354,462 thousand with a yield of 6.77% for the three months ended March 31, 2025, compared to $6,241,228 thousand and 7.01% in the previous quarter[187]. - The total loan and lease balances increased by $70.5 million, or 4% annualized, from December 31, 2024, primarily driven by a $74.5 million increase in other commercial real estate loans[246]. - Commercial real estate loans, including commercial construction loans, comprised the largest portion of the loan portfolio at March 31, 2025, with a total exposure of $2,299,337 thousand[250]. - The company maintains a diverse commercial loan portfolio, with no single industry comprising over 10% of the total loan portfolio[247]. Credit Quality - Total net charge-offs for the first quarter of 2025 were $8.121 million, or 0.52% of average total loans, down from $9.586 million, or 0.61%, in the linked quarter[256]. - The allowance for credit losses increased to $65.232 million as of March 31, 2025, from $63.348 million on December 31, 2024, representing a growth driven by macro-economic conditions, reserves on analyzed loans, and loan growth[252]. - As of March 31, 2025, total nonperforming assets (NPAs) decreased to $45.8 million, down from $48.9 million at December 31, 2024, representing a reduction of 4.3%[258]. - Total loans 90+ days past due and accruing decreased to $4.2 million at March 31, 2025, from $8.6 million at December 31, 2024, a decline of 51.3%[258]. Equity and Capital - The capital conservation buffer was 5.75% at March 31, 2025, indicating a strong capital position above regulatory requirements[265]. - As of March 31, 2025, Common Equity Tier 1 capital increased to $845,200 thousand, representing a ratio of 12.10%, up from 11.95% at December 31, 2024[266]. - Tangible book value per common share rose to $20.68 at March 31, 2025, compared to $19.94 at December 31, 2024, primarily due to an increase in tangible equity[268]. Operational Efficiency - The efficiency ratio for Q1 2025 was 60.7%, up from 59.6% in the linked quarter, mainly due to higher non-interest expenses[176]. - Total non-interest expense increased by $0.3 million for Q1 2025 compared to the linked quarter, primarily due to a $2.3 million increase in salaries and employee benefits[174]. - The efficiency ratio for Q1 2025 was 60.68%, up from 59.57% in Q4 2024 and 58.06% in Q1 2024, primarily due to higher non-interest expenses[232]. Regulatory and Competitive Environment - The company is subject to regulation by the Ohio Division of Financial Institutions, the Federal Reserve Board, and the FDIC, among others[159]. - Peoples may face increased competitive pressures from both financial and non-financial institutions, affecting credit spreads and customer acquisition[154]. - The company anticipates potential impacts from interest rate policies and economic conditions on its financial performance[154].