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Sep 30, 2022
Peoples Bancorp Q3 2022 Earnings Report
Reported an increase in net income and improved efficiency ratio.
Key Takeaways
Peoples Bancorp reported an increase in net income for the third quarter, with diluted earnings per share of $0.92. The company's efficiency ratio improved, and revenue grew faster than expenses. Return on average stockholders’ equity and return on average assets also increased.
Efficiency ratio improved to 57.2%, compared to 58.8% for the linked quarter.
Generated positive operating leverage, meaning revenues grew faster than expenses, compared to the linked quarter.
Return on average stockholders’ equity grew 31 basis points to 12.92%, while return on average assets increased 5 basis points to 1.45% compared to the linked quarter.
Net interest income was up 9% over the linked quarter, to $67.1 million, with net interest margin at 4.17%.
Forward Guidance
Peoples Bancorp provided guidance for the fourth quarter and full year of 2022, excluding one-time items, and also provided guidance for 2023, excluding the impact of Limestone.
Positive Outlook
- Expect loan growth for the full year of between 4-6%, excluding PPP loans.
- There is still some opportunity for net interest margin expansion in the fourth quarter, but this will be at a slower pace than our third quarter growth.
- Still on track to have an efficiency ratio of below 60% for the full year of 2022.
- Believe net interest margin for 2023 will be between 4.40% and 4.60%, which assumes relatively flat rates for 2023 as compared to year-end 2022.
- Anticipate loan growth of between 5 and 7% in 2023.
Challenges Ahead
- Continue to believe credit costs will grow in future quarters to our historical levels.
- Anticipate that our quarterly net charge-off rate, including leases, will be between 20 to 30 basis points as a percent of balances for the fourth quarter of 2022.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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