Peoples Bancorp Inc. Reports Mixed Q3 Results, Net Income Growth for Nine Months

Peoples Bancorp Inc. reported its financial results for the third quarter and the nine months ended September 30, 2024, reflecting a mixed performance in revenue and profitability compared to the previous fiscal period.

For the three months ended September 30, 2024, net income was $31.7 million, a slight decrease from $31.9 million in the same period of 2023. Basic earnings per share were $0.90, down from $0.91 year-over-year. However, for the nine months ended September 30, 2024, net income increased to $90.3 million from $79.5 million in the prior year, with earnings per share rising from $2.47 to $2.55.

Total interest income for Q3 2024 was $133.6 million, up from $123.6 million in Q3 2023, driven by higher interest and fees on loans and leases, which increased to $116.5 million from $109.0 million. However, net interest income decreased to $88.9 million from $93.3 million year-over-year, primarily due to increased funding costs and a decline in net interest margin, which fell to 4.27% from 4.70%.

Total non-interest income for Q3 2024 rose to $24.8 million from $23.2 million in Q3 2023, with notable increases in mortgage banking and lease income. Total non-interest expense decreased to $66.1 million from $71.7 million, largely due to lower acquisition-related expenses following the completion of the Limestone Bancorp merger in April 2023.

Peoples' total assets as of September 30, 2024, were $9.14 billion, a decrease from $9.23 billion at June 30, 2024, but an increase from $8.94 billion a year earlier. Total loans and leases stood at $6.27 billion, reflecting a slight decrease from $6.08 billion year-over-year, attributed to declines in construction and commercial real estate loans. Total deposits increased to $7.48 billion, up from $7.15 billion at the end of 2023, driven by growth in retail certificates of deposit.

The allowance for credit losses increased to $66.6 million from $62.0 million at the end of 2023, reflecting higher reserves for individually analyzed loans and leases. Net charge-offs for Q3 2024 were $6.1 million, up from $2.3 million in Q3 2023, primarily due to increased charge-offs on leases.

Peoples' capital position remained strong, with total stockholders' equity rising to $1.12 billion as of September 30, 2024, compared to $1.05 billion at the end of 2023. The Common Equity Tier 1 capital ratio was 11.80%, indicating a solid capital buffer above regulatory requirements.

Overall, while Peoples Bancorp Inc. experienced challenges in net interest income and increased charge-offs, it demonstrated growth in net income and total deposits, supported by strategic developments from the recent merger.