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Mar 31, 2024
Peoples Bancorp Q1 2024 Earnings Report
Reported earnings with diluted earnings per share impacted by annual expenses, but showed stability in fee-based income and a decrease in the loan-to-deposit ratio.
Key Takeaways
Peoples Bancorp reported earnings of $29.6 million, with diluted earnings per share at $0.84. The net interest margin compressed slightly, but fee-based income remained stable. Loan-to-deposit ratio decreased, and tangible book value per share improved.
Earnings were reported at $29.6 million, with diluted earnings per share of $0.84.
Net interest margin saw a slight compression of 5 basis points.
Loan-to-deposit ratio decreased to 84.7%.
Tangible book value per share improved to $18.39.
Peoples Bancorp
Peoples Bancorp
Forward Guidance
Peoples Bancorp anticipates net interest income to benefit from the Limestone merger, expects net interest margin to be between 4.1% and 4.3%, and projects fee-based income growth between 6% and 8%. Loan growth for 2024 is expected to be between 6% and 8%.
Positive Outlook
- Net interest income to benefit from the full year impact of the Limestone merger.
- Quarterly net interest margin expected to be between 4.1% and 4.3%.
- Fee-based income growth projected to be between 6% and 8%.
- Loan growth for 2024 expected to be between 6% and 8%.
- Anticipate an increase in our provision for credit losses with the anticipated loan growth and return of some of our net charge-offs to pre-pandemic levels.
Challenges Ahead
- Net interest margin assumption is based on no significant short-term interest rate changes in 2024.
- Expect an increase in provision for credit losses.
- Anticipating a full year net charge-off rate of around 20 basis points.
- Demand deposits declined to 35% of total deposits at quarter-end, compared to 38% at year-end.
- The increase in governmental deposits during the quarter was related to seasonal influxes of cash.