Bullish indicating open at $55-$60, IPO prices at $37
Marietta, Ohio-based Peoples Bancorp Inc . (NASDAQ:PEBO), a bank with a market capitalization of $1 billion and an impressive 52-year streak of consistent dividend payments, disclosed its first-quarter financial results on Monday, revealing an efficiency ratio improvement and adjustments to its non-interest expenses and income. According to InvestingPro data, the company maintains a healthy 5.7% dividend yield and has raised its dividend for nine consecutive years. The state commercial bank, with a standard industrial classification of 6022, conducted a conference call on April 22, 2025, to discuss its performance for the quarter ending March 31, 2025.
The company reported total non-interest expenses of $70.8 million for the quarter, with an efficiency ratio—a measure of a bank’s overhead as a percentage of its revenue—of 60.68%. This marked a slight increase compared to the 58.06% efficiency ratio from the same period last year. After adjustments for amortization of other intangible assets, the adjusted total non-interest expense was approximately $68.6 million.
Non-interest income, excluding net gains and losses, stood at $27.5 million, while net interest income on a fully tax-equivalent basis was reported at $85.5 million. Peoples Bancorp’s adjusted revenue for the quarter was $113 million.
The bank also provided details on its tangible equity and assets. As of March 31, 2025, tangible equity was $737.7 million, and tangible assets totaled approximately $8.85 billion. InvestingPro analysis shows the bank maintains a strong financial position with a "GREAT" overall health score of 3.06 out of 5, particularly excelling in growth and relative value metrics. The tangible book value per common share increased to $20.68 from $18.39 in the same quarter the previous year.
Peoples Bancorp’s pre-provision net revenue amounted to $41.9 million, and its annualized net income adjusted for non-core items was $99.9 million. The return on average assets adjusted for non-core items was 1.09%, slightly down from 1.33% in the same period in 2024.
The bank’s annualized net income, excluding amortization of other intangible assets, was $105.8 million. The return on average tangible equity ratio, which excludes these intangible assets, was 14.66%.
The information provided in this article is based on a press release statement from Peoples Bancorp Inc. and is intended to offer investors insight into the company’s financial condition without speculation or promotional language. Trading near its InvestingPro Fair Value with a P/E ratio of 9.04 and a price-to-book ratio of 0.89, the stock presents an interesting opportunity for value investors. For deeper insights, including 6 additional ProTips and comprehensive financial analysis, explore the detailed Pro Research Report available on InvestingPro, covering what really matters for informed investment decisions.
In other recent news, Peoples Bancorp reported its first-quarter 2025 earnings, which showed a slight miss on both earnings per share (EPS) and revenue forecasts. The company posted an EPS of $0.68, falling short of the $0.73 forecast, while revenue came in at $112.35 million, slightly below the expected $112.77 million. Despite these misses, the company demonstrated resilience, maintaining stable stock performance. Additionally, Stephens analyst Terry McEvoy reduced the price target for Peoples Bancorp from $37.50 to $33.00, citing concerns over elevated credit costs in the small ticket leasing portfolio. However, the analyst maintained an Equal Weight rating on the stock, acknowledging the company’s positive pre-tax, pre-provision net revenue trends. Peoples Bancorp continues to engage in merger and acquisition discussions, focusing on surpassing $10 billion in assets in a measured manner. The company also anticipates positive operating leverage throughout 2025, with expectations for net interest margin to range between 4.2% and 4.4% and fee-based income projected to grow in the mid-single digits. Management remains optimistic about loan growth prospects and is committed to maintaining strong credit quality.
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