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Dec 31, 2021
Peoples Bancorp Q4 2021 Earnings Report
Reported record earnings, net interest income growth, improved fee-based income, and increased total revenue.
Key Takeaways
Peoples Bancorp reported record earnings for the fourth quarter, driven by net interest income growth, improved fee-based income, and increased total revenue. The company's cost of funds declined, and the efficiency ratio improved. Loan growth was considerable in the core portfolio and acquired businesses, with demand deposits reaching an all-time high.
Record earnings were reported for the quarter, reaching $27.9 million.
Net interest income grew 28% compared to the linked quarter.
Fee-based income improved 13% compared to the linked quarter.
Total revenue increased 24% compared to the linked quarter.
Peoples Bancorp
Peoples Bancorp
Forward Guidance
Peoples Bancorp provided guidance for 2022, anticipating loan growth, stabilized credit costs, net interest margin between 3.50% and 3.60%, fee-based income growth, and an efficiency ratio in the high 50s.
Positive Outlook
- Loan growth to be between 6-8%, excluding PPP loans.
- Stabilization in credit costs as the economy becomes less impacted by the pandemic.
- Net interest margin for the full year of 2022 of between 3.50% and 3.60%, which does not include any anticipated rate hikes.
- Fee-based income growth is expected to be up between 14% and 16% compared to 2021.
- Efficiency ratio will be in the high 50’s.
Challenges Ahead
- First quarter expenses are generally higher due to employer contributions to health savings accounts, stock-based compensation expense for certain employees, higher payroll taxes, and annual merit increases.
- First quarter net interest margin coming in below the 3.50% to 3.60% range.
- Annual gross charge-off rate in future periods will return to a more historic level, and including leases, will be between 25 to 40 basis points as a percent of balances.
- Quarterly total non-interest expense will be between $46 and $48 million, with the exception of the first quarter, which is typically higher.
- High cash balances will continue to inflate