- Peoples Bancorp (PEBO, Financial) reports a net income of $24.3 million for Q1 2025, down from $26.9 million in Q4 2024.
- Net interest income decreased by $1.3 million quarter-over-quarter, reaching $85.3 million.
- Total deposits and loans have increased, with deposits up by $144.5 million and loans by $70.5 million from Q4 2024.
Peoples Bancorp Inc. (PEBO) announced its financial results for the first quarter of 2025 with a net income of $24.3 million, or $0.68 per diluted share. This represents a decline from the $26.9 million ($0.76 per share) recorded in the fourth quarter of 2024 and $29.6 million ($0.84 per share) in the first quarter of 2024.
The company reported a decrease in net interest income, which fell by $1.3 million (1%) quarter-over-quarter to $85.3 million. The net interest margin also narrowed slightly, from 4.15% in the previous quarter to 4.12% in Q1 2025. Despite the reduction in accretion income from acquisitions, the core net interest margin, excluding this factor, expanded by 3 basis points.
The provision for credit losses increased considerably to $10.2 million from $6.3 million in the prior quarter, impacting earnings per share by $0.22. Nevertheless, the asset quality showed improvements with criticized loans decreasing by $14.4 million.
Peoples Bancorp saw positive trends in its balance sheet, with total loans growing by $70.5 million (4% annualized) and deposits increasing by $144.5 million (2%) compared to the end of 2024. The efficiency ratio, however, rose to 60.7% from 59.6% in Q4 2024, primarily due to seasonal expenses such as health savings account contributions and stock-based compensation.
Overall, while Peoples Bancorp is experiencing pressure on profitability, it remains focused on maintaining operational stability and shareholder value, as noted by Tyler Wilcox, President and CEO of Peoples.
