Peoples Bancorp (PEBO) Q2 2024 earnings summary

Executive summary

• Net income for Q2 2024 was $29.0 million ($0.82 per diluted share), up from $21.1 million ($0.64) in Q2 2023, but down from $29.6 million ($0.84) in Q1 2024; six-month net income was $58.6 million ($1.66), up from $47.7 million ($1.56) year-over-year.

• Total assets reached $9.23 billion, loans $6.3 billion, and deposits $7.3 billion as of June 30, 2024.

• Loan and lease balances grew $122.5 million sequentially (8% annualized), with improvements in criticized and classified loans.

• Recognized by Newsweek and U.S. News & World Report for workplace excellence and regional banking leadership.

• Continued expansion through organic growth and acquisitions, with Limestone Merger integration complete and contributing to fee-based income growth.

Financial highlights

• Net interest income for Q2 2024 was $86.6 million, flat sequentially, and up 2% year-over-year; net interest margin declined to 4.18% from 4.26% in Q1 2024 and 4.54% in Q2 2023.

• Fee-based income, excluding annual insurance commissions, grew compared to the linked quarter; non-interest income for Q2 2024 was $24.5 million, up $1.6 million year-over-year.

• Non-interest expense was flat sequentially at $68.8 million, with efficiency ratio at 59.2%, improved from 62.8% in Q2 2023.

• Allowance for credit losses was $66.2 million (1.05% of total loans); annualized net charge-off rate increased to 0.27% from 0.09% in Q2 2023.

• Return on average assets for Q2 2024 was 1.27%; return on average tangible equity was 19.2%.

Outlook and guidance

• Net interest margin expected between 4.1% and 4.3% for the remainder of 2024, assuming no significant rate changes.

• Fee-based income growth projected at 6–8% over 2023.

• Quarterly non-interest expense forecasted at $67–69 million for Q3 and Q4 2024.

• Loan growth guidance lowered to 5–7% for 2024, down from 6–8%.

• Full-year net charge-off rate anticipated at 25–30 basis points.