Peoples Bancorp (PEBO) Q2 2025 earnings summary

Executive summary

• Net income for Q2 2025 was $21.2M ($0.59 per diluted share), down from $24.3M in Q1 2025 and $29.0M in Q2 2024, impacted by higher provision for credit losses.

• Annualized loan growth reached 11% in Q2 2025, with net interest margin expanding to 4.15% from 4.12% in Q1 2025.

• Book value per share increased 1%, tangible book value per share rose 2% to $21.18 at June 30, 2025.

• Pre-provision net revenue exceeded consensus estimates.

• Focus remains on sustainable growth and strong shareholder returns.

Financial highlights

• Net interest income for Q2 2025 was $87.6M, up $2.3M sequentially; net interest margin expanded 3 basis points to 4.15%.

• Non-interest expense was $70.4M, down 1% sequentially; efficiency ratio improved to 59.3% from 60.7% in Q1.

• Non-interest income (excluding gains/losses) declined 1% sequentially but grew 8% year-over-year for the first half, led by higher lease income.

• Allowance for credit losses increased to 1.13% of total loans at June 30, 2025.

• Net charge-offs for Q2 2025 were $7.0M (0.43% of average loans annualized), up from $4.2M (0.27%) in Q2 2024, mainly due to lease portfolio losses.

Outlook and guidance

• Expects full-year 2025 net interest margin between 4% and 4.20%, assuming three 25bp Fed rate cuts in H2.

• Anticipates fee-based income growth in the mid-single digits year-over-year.

• Quarterly non-interest expense expected between $69M and $71M for Q3 and Q4.

• Loan growth guidance maintained at 4%-6% for 2025, with optimism for the higher end of the range.

• Small ticket leasing net charge-offs expected to plateau in H2 2025; provision for credit losses projected to decline barring negative economic shifts.