Peoples Bancorp -PEOPLES BANCORP INC. ANNOUNCES FOURTH QUARTER AND ANNUAL RESULTS FOR 2024

Core Points - Peoples Bancorp Inc. reported a net income of $26.9 million for Q4 2024, down from$ 31.7 million in Q3 2024 and $33.8 million in Q4 2023, with earnings per diluted common share of$ 0.76 [1][2] - For the full year 2024, net income was $117.2 million, an increase from$ 113.4 million in 2023, with earnings per diluted common share of $3.31 compared to$ 3.44 in 2023 [1][2] Statement of Operations Highlights - The increase in net income for 2024 marked the third consecutive year of record net income for the company [2] - Higher swap fee income driven by customer demand contributed to the increase in net income [3] Balance Sheet Highlights - The merger with Limestone Bancorp was completed on April 30, 2023, valued at $177.9 million, with acquisition-related expenses recorded [5] - Total loan and lease balances increased by$ 86.2 million, or 5% annualized, compared to September 30, 2024, driven by growth in commercial and industrial loans [13][32] Net Interest Income - Net interest income for Q4 2024 was $86.5 million, a decrease of$ 2.4 million from the linked quarter, with a net interest margin of 4.15% [6][13] - For the full year 2024, net interest income increased by $9.3 million, or 3%, compared to 2023, driven by higher market interest rates and additional income from the Limestone Merger [9][10] Provision for Credit Losses - The provision for credit losses was$ 6.3 million for Q4 2024, down from $6.7 million in Q3 2024, but up from$ 1.3 million in Q4 2023 [11][12] - For the full year 2024, the provision for credit losses was $24.8 million, compared to$ 15.2 million in 2023, primarily due to higher net charge-offs and loan growth [12] Non-Interest Income and Expense - Total non-interest income, excluding net gains and losses, increased by $1.2 million, or 5%, for Q4 2024 compared to the linked quarter, driven by higher swap fee income [18] - Total non-interest expense increased by$ 4.4 million, or 7%, for Q4 2024 compared to the linked quarter, primarily due to acquisition-related expenses [21][22] Asset Quality - Overall asset quality remained stable, with delinquency trends showing 98.7% of loans considered current as of December 31, 2024 [36] - Nonperforming assets decreased by $20.8 million, or 30%, compared to September 30, 2024, but increased by$ 9.6 million, or 24%, compared to December 31, 2023 [37] Deposits - Total deposits increased by $111.9 million, or 2%, compared to September 30, 2024, driven by increases in brokered certificates of deposit and core deposits [42] - Compared to December 31, 2023, total deposit balances increased by$ 442.8 million, or 6% [43] Stockholders' Equity - Total stockholders' equity decreased by $13.4 million, or 1%, compared to September 30, 2024, primarily due to an increase in accumulated other comprehensive loss [47] - Compared to December 31, 2023, total stockholders' equity increased by$ 58.1 million, or 6% [48] Capital Ratios - The tier 1 risk-based capital ratio was 12.40% at December 31, 2024, compared to 12.59% at September 30, 2024 [49] - The common equity tier 1 risk-based capital ratio improved to 11.96% at December 31, 2024, compared to 11.80% at September 30, 2024 [49]