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Mar 31, 2021
Peoples Bancorp Q1 2021 Earnings Report
Reported earnings for the first quarter of 2021.
Key Takeaways
Peoples Bancorp reported diluted earnings per share of $0.79 for the first quarter of 2021, compared to $1.05 for the fourth quarter, and a loss of 4 cents for the first quarter of 2020. The first quarter results included an additional release of $4.7 million of provision for credit losses. The company also surpassed $5 billion in assets at March 31.
Closed North Star Leasing acquisition at the beginning of April with assets of approximately $86 million.
Announced a planned merger with Premier Financial Bancorp, Inc., which is anticipated to be completed late in the third quarter of 2021.
COVID-related loan modifications stood at $13 million at the end of March.
Loan balances grew nearly $7 million from year-end, which included declines in PPP balances of $17 million.
Peoples Bancorp
Peoples Bancorp
Forward Guidance
Peoples Bancorp anticipates increased market share and efficiencies contributing to future profitability. The Premier acquisition is expected to be immediately accretive to earnings, with a short earn-back period for tangible book value. The two acquisitions are projected to add 75 to 80 cents to EPS in 2022.
Positive Outlook
- Second quarter core non-interest expenses, including North Star Leasing, will be between $37 and $38 million.
- Expect to produce loan growth of between 3% and 5% annualized for the second quarter, excluding PPP loans and acquired leases.
- Optimistic about the economy and have a healthy pipeline.
- Gross charge-off rate will be between 25 basis points and 35 basis points.
- Very optimistic about our ability to grow income in 2022 versus 2021, with two acquisitions giving EPS growth of 75 to 80 cents.
Challenges Ahead
- Loan growth dependent on line of credit utilization rates remaining stable.
- High customer liquidity impacting loan growth.
- Inventory limitations affecting consumer indirect business.
- Mortgage business hampered by inventory.
- Volatility in provision for credit losses during 2021 as the economic forecast from Moody’s adjusts.