Core Points - Peoples Bancorp Inc. reported a net income of $21.2 million for Q2 2025, down from $24.3 million in Q1 2025 and $29.0 million in Q2 2024, resulting in diluted earnings per share of $0.59 [1][57] - The company experienced strong annualized loan growth and net interest margin expansion, with a net interest margin of 4.15% for Q2 2025, up from 4.12% in the previous quarter [2][10] - The provision for credit losses increased significantly to $16.6 million in Q2 2025, compared to $10.2 million in Q1 2025 and $5.7 million in Q2 2024, primarily due to net charge-offs and increased reserves [9][11] Financial Performance - Net interest income for Q2 2025 was $87.6 million, an increase of $2.3 million from the previous quarter and $1.0 million from Q2 2024 [4][5] - Total non-interest income, excluding net gains and losses, decreased by $0.3 million, or 1%, compared to the linked quarter, primarily due to a decrease in insurance income [10][16] - Total non-interest expense decreased by $0.4 million compared to the linked quarter, driven by lower salaries and employee benefit costs [19][20] Asset Quality - Key asset quality metrics remained stable, with delinquency trends improving as loans considered current comprised 99.1% of the loan portfolio [33] - Criticized loans increased by $17.9 million, or 8%, compared to the previous quarter, driven by the downgrade of one commercial relationship [34] - The allowance for credit losses increased to $9.4 million compared to the previous quarter, with a ratio of 1.13% of total loans [37] Loans and Deposits - Total loan and lease balances increased by $173.1 million, or 11% annualized, compared to the previous quarter, driven by growth in commercial and industrial loans and residential real estate loans [28][29] - Total deposits decreased by $97.5 million compared to the previous quarter, primarily due to decreases in governmental deposit accounts and money market deposits [38][39] - Retail deposit balances represented 78% of total deposits as of June 30, 2025, consistent with previous periods [41] Stockholders' Equity - Total stockholders' equity increased by $15.5 million, or 1%, compared to the previous quarter, driven by net income and a decrease in accumulated other comprehensive loss [44][45] - The book value per common share was $32.33 as of June 30, 2025, reflecting an increase from previous periods [57]