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Mar 31, 2020
Peoples Bancorp Q1 2020 Earnings Report
Reported a loss impacted by COVID-19 and CECL adoption.
Key Takeaways
Peoples Bancorp announced a loss of $0.04 per share for Q1 2020, heavily impacted by COVID-19 related developments and the implementation of the CECL accounting standard. The company approved 2,432 PPP loans for $426 million as of April 17, 2020, and is offering loan modifications and payment deferrals to clients. Despite the loss, the company saw loan growth of 5% annualized, core deposit growth of 7%, and a stable net interest margin of 3.51%.
Loss per diluted share of $0.04, impacted by $17 million of provision for credit losses.
Loan growth of 5% annualized compared to the linked quarter-end.
Core deposit growth of 7% from the linked quarter-end.
Net interest margin was relatively stable at 3.51%.
Forward Guidance
Peoples Bancorp provided guidance for the remainder of 2020, excluding large market changes and the impact of PPP and the premium financing company acquisition. They anticipate a net interest margin between 3.30% and 3.45%, total non-interest expense between $33 and $34 million per quarter, fee income to average $16 million per quarter, and loan growth to be between 0-2% for 2020 compared to year-end. They also expect to earn approximately $13 million in pre-tax income during 2020 from the SBA PPP and the premium finance company acquisition to be accretive to earnings by approximately 2 to 4 cents during 2020.
Positive Outlook
- Net interest margin between 3.30% and 3.45% for the last 9 months of 2020.
- Fee income to average $16 million per quarter for the last three quarters of 2020.
- Loan growth to be between 0-2% for 2020 compared to year-end.
- Approximately $13 million in pre-tax income during 2020 from the SBA PPP.
- Premium finance company acquisition will be accretive to earnings by approximately 2 to 4 cents during 2020, and 11 to 14 cents in 2021.
Challenges Ahead
- Impact of the pandemic on the loan portfolio will be manageable, but some losses are expected.
Historical Earnings Impact
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