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Dec 31, 2022
Peoples Bancorp Q4 2022 Earnings Report
Reported a net income of $26.8 million for the fourth quarter, or $0.95 in diluted earnings per share, with record quarterly total revenue and expanded net interest margin.
Key Takeaways
Peoples Bancorp reported a strong fourth quarter with record revenue, expanded net interest margin, and positive operating leverage. Net income for the quarter was $26.8 million, or $0.95 per diluted share. The company also highlighted record pre-tax pre-provision net revenue and improved return on average stockholders' equity.
Record quarterly total revenue of over $90 million.
Net interest margin expanded by 27 basis points compared to the linked quarter.
Annualized loan growth of 8% compared to the linked quarter.
Efficiency ratio lowered to 56.7% compared to 57.2% for the linked quarter.
Peoples Bancorp
Peoples Bancorp
Forward Guidance
Peoples Bancorp expects net interest income to continue to grow due to the Limestone Merger and the full-year benefits of higher market interest rates. The company anticipates loan growth and fee-based income percentage growth, along with a 20% increase in total non-interest expenses. The efficiency ratio is expected to be between 55% and 57% for the full year, including Limestone.
Positive Outlook
- Net interest income to continue to grow due to the Limestone Merger.
- Full year benefits of higher market interest rates as loans reprice.
- Loan growth of between 25 and 30%, including Limestone balances.
- Annual organic growth without acquired loans to be between 5 to 7%.
- Fee-based income percentage growth to be in the low double-digits compared to 2022.
Challenges Ahead
- Net interest margin expansion to slow as funding costs increase.
- Anticipating a 20% increase in total non-interest expenses for 2023, excluding acquisition-related expenses.
- Expect efficiency ratio to be between 55% and 57% for the full year, including Limestone.
- Believe there will be an increase of about 5 basis points in net charge-off rate during 2023, compared to 2022.
- First quarter expenses are generally higher due to employer contributions to health savings accounts, stock-based compensation expense, higher payroll taxes, and annual merit increases.