Peoples Bancorp (PEBO) Q1 2025 earnings summary

Executive summary

• Net income for Q1 2025 was $24.3 million, or $0.68 per diluted share, down from $29.6 million ($0.84/share) in Q1 2024 and $26.9 million ($0.76/share) in Q4 2024, with non-core items and one-time costs impacting results.

• Annualized loan growth exceeded 4%, with deposit balances up 2% sequentially and brokered CDs reduced by $96 million.

• Book value per share increased 2% to $31.90, and tangible book value per share rose 4% to $20.68.

• Asset quality improved, with reductions in net charge-off rate, non-performing assets, and criticized/classified loans.

• Quarterly dividend was increased for the 10th consecutive year, now at $0.41 per share.

Financial highlights

• Net interest income was $85.3 million, down 1% sequentially and year-over-year, with net interest margin at 4.12%, down from 4.26% a year ago; core margin expanded 3 basis points sequentially.

• Fee-based income grew over 2% year-over-year, mainly from insurance commissions; non-interest income (excluding gains/losses) increased sequentially and year-over-year.

• Non-interest expense increased slightly due to one-time Q1 costs, including stock-based compensation and health savings contributions.

• Efficiency ratio rose to 60.7% from 59.6% in the prior quarter and 58.1% a year ago.

• Return on average assets was 1.07%, and return on average tangible equity was 14.66%.

Outlook and guidance

• Full-year 2025 net interest margin expected between 4% and 4.2%, assuming two 25bp Fed rate cuts.

• Loan growth guidance reaffirmed at 4–6% for 2025; fee-based income growth projected in the mid-single digits.

• Quarterly non-interest expense expected at $69–$71 million for Q2–Q4 2025.

• Provision for credit losses expected to normalize in H2 2025, after elevated Q1 and Q2 due to leasing charge-offs.

• Management remains focused on expense control, credit quality, and organic loan growth amid macroeconomic and regulatory developments.