FTSE 100 today: Index edges higher; Centrica gains on Sizewell C stake
MARIETTA, Ohio - On Tuesday, Peoples Bancorp Inc . (NASDAQ:PEBO) reported second quarter earnings that fell short of analyst expectations as higher credit loss provisions weighed on results, despite revenue slightly exceeding forecasts.
The Ohio-based financial services company posted earnings per diluted share of $0.59 for the second quarter, missing analyst estimates of $0.77 by $0.18. Revenue came in at $114.46 million, slightly above the consensus estimate of $113.27 million.
Net income totaled $21.2 million for the quarter, down from $29.0 million in the same period last year. The significant drop was primarily driven by a $16.6 million provision for credit losses, nearly triple the $5.7 million recorded in Q2 2024.
"We are pleased with strong annualized loan growth and net interest margin expansion in the second quarter," said Tyler Wilcox, President and Chief Executive Officer. "For our shareholders, we remain focused on driving sustainable growth and delivering strong returns."
The bank reported period-end loan balances increased $173.1 million, or 11% annualized, compared to the previous quarter. Net interest margin improved to 4.15% from 4.12% in the linked quarter, driven by lower deposit and borrowing costs.
Total (EPA:TTEF) non-interest income, excluding net gains and losses, decreased $0.3 million, or 1%, compared to the first quarter. The efficiency ratio improved to 59.3% from 60.7% in the previous quarter.
The provision for credit losses was primarily driven by net charge-offs, increased reserves on individually-analyzed loans and leases, higher reserves for North Star Leasing division leases, and a periodic refresh in loss drivers used in the CECL model.
Peoples maintained strong capital levels with a common equity tier 1 capital ratio of 11.95% at quarter-end.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.