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Jun 30, 2020
Peoples Bancorp Q2 2020 Earnings Report
Generated a net income impacted by the provision for credit losses and experienced growth in key areas, including PPP loans and consumer indirect lending.
Key Takeaways
Peoples Bancorp reported a net income of $4.7 million for the second quarter of 2020, heavily impacted by a provision for credit losses of $11.8 million. Excluding PPP loans, total originated loan growth was 4% annualized. The company saw core deposit growth of 16% and completed the acquisition of a premium finance company. Despite the economic challenges, Peoples Bancorp focused on expense management and maintained strong capital levels.
Closed nearly $500 million of loans under the Small Business Administration’s Paycheck Protection Program (PPP).
Originated loan growth of 4% annualized compared to March 31, 2020, excluding the impact of PPP loans.
Total non-interest income, excluding gains and losses, grew 3% compared to the linked quarter, excluding the annual impact of performance-based commissions.
Net income was $4.7 million, or $0.23 per diluted share.
Peoples Bancorp
Peoples Bancorp
Forward Guidance
Peoples Bancorp will not be providing financial expectations for the foreseeable future due to economic uncertainty.
Positive Outlook
- Fee income comprised 30% of total revenue for the second quarter of 2020.
- Low cost of deposits, which were 34 basis points for the quarter, a 21 basis point decline compared to the linked quarter.
- Loan-to-deposit ratio stood at 84% at June 30, 2020.
- Nonperforming assets as a percent of total loans and OREO was 0.80% and improved 14 basis points compared to the linked quarter-end.
- Strong capital position, which even under stressed scenarios provides a great source of strength.