Peoples Bancorp Inc. Reports Strong Q2 2025 Performance Amid Economic Challenges
Peoples Bancorp Inc. Reports Strong Q2 2025 Performance Amid Economic Challenges
Marietta, Ohio – July 22, 2025 – Peoples Bancorp Inc., allocated as NASDAQ symbol PEBO, has announced its financial results for the second quarter ending June 30, 2025. The bank reported a net income of $21.2 million, delivering earnings of $0.59 per diluted share. While this reflects a decrease compared to the previous quarter's net income of $24.3 million, significant progress in other areas has been observed.
Financial Highlights
During the quarter, the company saw a notable growth of $2.3 million in net interest income compared to the previous quarter, reflecting a rise of 3%. This growth was driven by a reduction in funding costs. The net interest margin also experienced a slight increase to 4.15%, up from 4.12% last quarter. Notably, the margin benefited from a decrease in costs associated with deposits and borrowings.
Despite achieving this income growth, the bank had to increase its provision for credit losses to $16.6 million, up from $10.2 million in the prior quarter. This increase is linked to new reserves based on a mix of economic forecasts and an uptick in loan growth, a reflection of evolving economic conditions.
Loan and Deposit Growth
Peoples Bancorp reported an increase in total loan and lease balances, rising by $173.1 million, or 11% annualized since March, buoyed largely by growth in commercial loans and residential mortgages. Total deposit balances, however, saw a slight decline of $97.5 million or 1%, predominantly attributed to seasonal impacts on governmental deposits and a downtrend in money market deposits. However, overall deposits rose by $339.4 million or 5% compared to the same quarter last year.
Peoples’ capacity for liquidity remained robust, with liquid assets reaching $878.5 million as of June 30, 2025. This ensures continued availability of funds for lending and operational needs. Furthermore, the bank maintained a total borrowing capacity of $607.5 million, reinforcing its funding strategy.
Asset Quality and Efficiency
Key performance indicators regarding asset quality remained stable. The proportion of loans considered current reached 99.1%, an improvement that reflects prudent credit management. However, criticized loans increased slightly to $244.4 million reflecting economic pressures impacting current portfolios.
The efficiency ratio displayed an improvement to 59.3% compared to 60.7% in the previous quarter, highlighting the bank's effective management of expenses in relative proportion to generated income.
Forward Outlook
Emphasizing the commitment to sustainable growth, President CEO Tyler Wilcox remarked, "We remain steadfast in our drive for operational efficiency and shareholder returns, confident in our loans growth strategy even in volatile economic environments."
In conclusion, while the Q2 financial results of Peoples Bancorp Inc. reflect various challenges, the organization has demonstrated resilience with solid growth metrics, a dedicated management team, and a clear vision for the future, affirming their goal to remain the best community bank in America.
For those interested, the company will host a conference call on July 22, 2025, at 11:00 AM ET to discuss these results in more detail, open to all analysts and media.
About Peoples Bancorp Inc.
Peoples Bancorp Inc. is a financial services holding company providing banking, trust, investment, insurance, and premium finance services across a wide geographic area since 1902, with over 145 locations. The firm continues to prioritize its community impact alongside robust financial performance.
For further inquiries, refer to the Investor Relations section on their website.
Topics Financial Services & Investing）
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