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Dec 31, 2020
Peoples Bancorp Q4 2020 Earnings Report
Reported record quarterly net income and diluted EPS of $1.05 for Q4, driven by a recovery of provision for credit losses.
Key Takeaways
Peoples Bancorp reported record quarterly net income for Q4 2020, with diluted EPS of $1.05, driven by a recovery of provision for credit losses. The company saw a decline in PPP loan balances and recognized interest income from the amortization of net deferred loan fees and costs from PPP loans. Loan balances declined 2% from the previous quarter, and the company's credit quality metrics remained stable.
Diluted EPS for Q4 2020 was $1.05, compared to $0.51 in the linked quarter and $0.72 for the fourth quarter of 2019.
Recognized a recovery of provision for credit losses of $7.3 million during the fourth quarter.
PPP loan balances declined by $94 million, or 20%, from September 30, 2020.
Recognized $3.7 million of interest income on the amortization of the net deferred loan fees and costs from the PPP loans.
Peoples Bancorp
Peoples Bancorp
Forward Guidance
Peoples Bancorp expects higher expenses during the first quarter of each year due to employer contributions to health savings accounts, stock-based compensation expense, higher payroll taxes, and annual merit increases. The company anticipates low single-digit loan growth for 2021, contingent upon continued economic improvement.
Positive Outlook
- Expecting low single-digit loan growth for 2021.
- First quarter numbers for loan growth are looking strong.
- Company's foundation gave out $750,000 to local communities.
- Associates donated $116,000 to support food banks within our footprint to assist in hunger prevention.
Challenges Ahead
- Typically have higher expenses during the first quarter of each year.
- Recognize additional costs related to employer contributions to health savings accounts.
- Recognize additional costs related to stock-based compensation expense for certain employees.
- Recognize additional costs related to higher payroll taxes.
- Recognize additional costs related to annual merit increases.