Peoples Bancorp Inc. · NASDAQ:PEBO
Peoples Bancorp — Q1 2025 Earnings Presentation
44 slides from Peoples Bancorp's earnings presentation, Apr 22, 2025
Slide 1: Investor Presentation 1st Quarter
WORKING TOGETHER. BUILDING SUCCESS.® INVESTOR PRESENTATION I 1st QUARTER
Slide 2: Table of Contents
WORKING TABLE OF CONTENTS TOGETHER PAGE 4 PROFILE, CULTURE, STRATEGY & INVESTMENT RATIONALE BUILDING PAGE 13 BUILT ON A SOLID FOUNDATION SUCCESS PAGE 28 Q1 2025 FINANCIAL INSIGHTS PAGE 37 Q1 2025 APPENDIX 2
Slide 3: Safe Harbor Statement
SAFE HARBOR STATEMENT Statements in this presentation which are not historical are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Ac
Slide 4: Profile, Culture, Strategy & Investment Rationale
PROFILE, CULTURE, STRATEGY & INVESTMENT RATIONALE 4
Slide 5: Geographic Profile
PEBO GEOGRAPHIC PROFILE NASDAQ: PEBO NASDAQ: PEBO PEBO SNAPSHOT AS OF MARCH 31, 2025 PEOPLES BANK GEOGRAPHIC FOOTPRINT Loans: $6.4 billion CURRENT PEBO FOOTPRINT COUNTIES WHERE PEBO HAS TOP 3 MARKET SHARE* Assets: $9.2 billion COUNTIES WHERE PEBO HAS OVER $100 MILLION OF DEPOSITS AND IS NOT IN TOP 3
Slide 6: Corporate Culture
CORPORATE CULTURE NASDAQ: PEBO OUR VISION Our vision is to be the BEST COMMUNITY BANK IN AMERICA for our employees, clients, shareholders, and local communities. OUR CORE VALUES Our actions are guided by our core values represented by the Promise Circle, which embodies how we do business and our nev
Slide 7: Strategic Road Map
STRATEGIC ROAD MAP NASDAQ: PEBO NASDAQ: PEBO • Commitment to Superior Shareholder Returns • Great Place to Work • Clients’ First Choice for Financial Services • Meaningful Impact on Our Communities BEST COMMUNITY BANK IN AMERICA RESPONSIBLE EXTRAORDINARY PROFITABLE FIRST CLASS RISK MANAGEMENT CLIENT
Slide 8: Preparation for Crossing $10 Billion
PREPARATION CROSSING $10 BILLION NASDAQ: PEBO SINCE 2016, WE HAVE BEEN PROACTIVELY PREPARING TO CROSS $10 BILLION IN ASSETS AND BEYOND Core System Conversion 2016 Upgraded to Microsoft 365 for all associates Implemented best-in-class Revamped online and Customer Relationship Cloud native business mo
Slide 9: Leading Edge Products, Technology and Capabilities
LEADING EDGE PRODUCTS, TECHNOLOGY AND CAPABILITIES NASDAQ: PEBO NASDAQ: PEBO CREDIT CARD SOLUTIONS COMMERCIAL CAPABILITIES FRAUD PREVENTION TOOLS Purchasing card, ghost card, Remote deposit capture, sweep Positive pay, reverse positive pay, virtual card, credit cards for accounts and more debit card
Slide 10: Investment Rationale
INVESTMENT RATIONALE NASDAQ: PEBO UNIQUE COMMUNITY STRONG, DIVERSE SOURCES BANKING MODEL OF FEE INCOME • Strongest deposit market share positions in rural • Top 10 bank-owned insurance agency, with expertise markets where we can affect pricing. Top 3 market in commercial, personal, life and health s
Slide 11: Investment Rationale
INVESTMENT RATIONALE NASDAQ: PEBO NASDAQ: PEBO COMMITED TO DISCIPLINED CAPACITY TO GROW EXECUTION AND GENERATING OUR FRANCHISE POSITIVE OPERATING LEVERAGE • Strong capital, earnings growth and operating • Integrated enterprise risk management process performance to support M&A strategy • Focused on
Slide 12: External Recognition
EXTERNAL RECOGNITION NASDAQ: PEBO FOUR YEARS IN A ROW es o 2024 t f Bthe T ri-Sta te 12
Slide 13: Built on a Solid Foundation
NASDAQ: PEBO BUILT ON A SOLID FOUNDATION CAPITAL, CREDIT AND LIQUIDITY 13
Slide 14: Net Interest Margin
NET INTEREST MARGIN NASDAQ: PEBO NEAR BEST IN CLASS NET INTEREST MARGIN LARGELY DUE TO STRONG DEPOSIT FRANCHISE DATA AS OF DECEMBER 31, 2024 PEER GROUP - NET INTEREST MARGIN PEERGROUP- NET INTERESTMARGIN 5.00% 4.50% 4.20% 4.00% 3.50% UNIV. $1-$10 B AVERAGE: 3.32% 3.00% 2.50% 2.00% 1.50% 1.00% 0.50%
Slide 15: Return on Average Assets
RETURN ON AVERAGE ASSETS NASDAQ: PEBO NASDAQ: PEBO PEOPLES ADJUSTED ROAA OVER THE LAST 3 YEARS RETURN ON AVERAGE ASSETS (ROAA) 1.75% 1.61% 1.47% 1.38% 1.41% 1.43% 1.33% 1.30% 1.38% 1.37% 1.27% 1.32% 1.25% 1.30% 1.19% 1.27% 1.19% 1.17% 1.12% 1.10% 1.10% 1.00% 0.94% 0.94% 0.82% 0.87% 0.84% 0.84% 0.83%
Slide 16: Cost of Deposits
COST OF DEPOSITS NASDAQ: PEBO PEBO IS BELOW THE $1 - $10 BILLION BANK UNIVERSE IN TERMS OF COST OF DEPOSITS AS OF DECEMBER 31, 2024 PEERGROUP - TOTAL PEER GROUP DEPOSIT - TOTAL COST DEPOSIT (%)(%) COST 3.50% 3.00% 2.50% UNIV. $1-$10 B AVERAGE: 2.24% 1.96% 2.00% 1.50% 1.00% 0.50% 0.00% NWBI FCF PFC P
Slide 17: Loan-to-Deposit Ratio
LOAN-TO-DEPOSIT RATIO NASDAQ: PEBO NASDAQ: PEBO PEBO IS BELOW THE AVERAGE OF THE $1-$10 BILLION BANK UNIVERSE IN TERMS OF LOAN-TO-DEPOSIT RATIO DATA AS OF DECEMBER 31, 2024 PEER PEER GROUP GROUP --LOAN-TO-DEPOSIT LOANS / DEPOSITS RATIO 120% 100% 84% UNIV. $1-$10 B AVERAGE: 89% 80% 60% 40% 20% 0% NWB
Slide 18: Loan Yield
LOAN YIELD NASDAQ: PEBO PEBO IS ABOVE THE AVERAGE OF THE PEER GROUP IN TERMS OF LOAN YIELD DATA AS OF DECEMBER 31, 2024 PEER GROUP - LOAN YIELD 8.00% 7.40% 7.18% 7.20% 7.13% 7.00% 6.73% 6.16% 6.11% 6.02% 5.93% 6.00% 6.21% 6.08% 6.10% 5.64% 5.98% 5.69% 5.13% 5.00% 4.73% 4.58% 4.48% 4.48% 4.20% 4.00%
Slide 19: Credit Risk Management Process
CREDIT RISK MANAGEMENT PROCESS NASDAQ: PEBO NASDAQ: PEBO LOANS & LEASES* PORTFOLIO COMPOSITION MANAGEMENT & MONITORING • Robust concentration management process focused on portfolio • Clear segregation of duties between sales & credit functions risk diversification • Signature approval process with
Slide 20: Asset Quality
ASSET QUALITY NASDAQ: PEBO NPAS AS A PERCENT OF TOTAL ASSETS HAVE REMAINED UNDER 0.70% NONPERFORMING NONPERFORMING ASSETS ASSETS (NPAs) AND NPA (NPAs) OF TOTAL ASSETS PERCENT AND NPA PERCENT OF TOTAL ASSETS $100 1.00% $80 0.80% $60 0.60% NPA’S IN $ MILLIONS $40 0.40% $20 0.20% $0 0.00% FY-21 FY-22 F
Slide 21: Asset Quality
ASSET QUALITY NASDAQ: PEBO NASDAQ: PEBO CLASSIFIED AND CRITICIZED LOANS AS A PERCENTAGE OF TIER 1 CAPITAL ARE WELL MANAGED CRITICIZED AND CLASSIFIED LOANS CRITICIZED AND CLASSIFIED LOANS 40% 29.11% 28.50% 30% 26.66% 26.02% 22.06% 20% 16.40% 13.60% 14.16% 13.34% 12.06% 10% 0% FY-21 FY-22 FY-23 FY-24
Slide 22: CRE Concentration Analysis
CRE CONCENTRATION ANALYSIS NASDAQ: PEBO CRE EXPOSURE IS WELL BELOW SUPERVISORY CRITERIA ESTABLISHED TO IDENTIFY INSTITUTIONS WITH HEIGHTENED CRE CONCENTRATION RISK PEERGROUP- CRELOANS / RISK-BASED CAPITAL DATA AS OF DECEMBER 31, 2024 400% PEER GROUP – CRE LOANS / RISK-BASED CAPITAL 350% 300% 259% 25
Slide 23: CRE Concentration Analysis
CRE CONCENTRATION ANALYSIS NASDAQ: PEBO NASDAQ: PEBO PEBO IS MEANINGFULLY BELOW THE AVERAGE FOR $1-10 BILLION BANKS IN TERMS OF CONSTRUCTION, LAND AND LAND DEVELOPMENT LOANS / RISK-BASED CAPITAL DATA AS OF DECEMBER 31, 2024 PEERGROUP - CONSTRUCTION, LAND AND DEVELOPMENTLOANS / RISK- PEER GROUP - CON
Slide 24: Loan Composition
LOAN COMPOSITION NASDAQ: PEBO LOAN COMPOSITION REFLECTS DIVERSIFIED RISK PROFILE TOTAL LOAN PORTFOLIO COMMERICAL LOAN PORTFOLIO TOTAL LOAN PORTFOLIO = $6.4 BILLION COMMERCIAL LOAN PORTFOLIO = $3.9 BILLION 1 COMMERCIAL 1 COMMERCIAL REAL ESTATE 2 CONSUMER 2 COMMERCIAL & INDUSTRIAL 8% 10% 3 SPECIALTY F
Slide 25: Loan Composition
LOAN COMPOSITION NASDAQ: PEBO NASDAQ: PEBO TOTAL C&I PORTFOLIO= $1.3 BILLION FOOD SERVICES TOTAL CRE LOAN PORTFOLIO* = $2.2 BILLION TOTAL C&I PORTFOLIO* = $1.3 BILLION RETAIL TRADE TOTAL CRE PORTFOLIO* = $2.2 BILLION FOOD SERVICES 1CONTRACTORS 2 RETAIL TRADE APARTMENT 1 APARTMENT 18% CONTRACTORS 3MA
Slide 26: Prudent Use of Capital
PRUDENT USE OF CAPITAL NASDAQ: PEBO 2.0% $1.55 $1.59 DIVIDENDS $1.50 1.5% $1.37 $1.43 $1.32 $1.16 1.0% $0.84 • 10 straight years of increasing dividends $0.60 $0.64 0.5% • Dividend paid increased from $0.15 per share for Q3 2016 to $0.41 per share declared in Q1 2025 2020 2023 2022 2024 2018 2016 20
Slide 27: Investment Rationale: Strength in the Current Environment
INVESTMENT RATIONALE NASDAQ: PEBO NASDAQ: PEBO STRENGTH IN THE CURRENT ENVIRONMENT (AS OF MARCH 31, 2025) DEPOSITS CREDIT • Average retail customer deposit relationship: $26,000 • NPAs of 0.50% as a percentage of total assets • Median retail customer deposit relationship: $2,900 • 98.5% of loan port
Slide 28: Q1 2025 Financial Insights
Q1 2025 FINANCIAL INSIGHTS 28
Slide 29: Q1 2025 Highlights & Key Impacts
Q1 2025 HIGHLIGHTS & KEY IMPACTS NASDAQ: PEBO NASDAQ: PEBO Q1 2025 RETURN ON AVERAGE ASSETS 1.07% NET INTEREST MARGIN 4.12% NET INCOME $24 MILLION OR $0.68 PER DILUTED COMMON SHARE NET CHARGE-OFFS 0.52% OF AVERAGE TOTAL LOANS EFFICIENCY RATIO 60.7% LOAN TO DEPOSIT RATIO 83% ® WORKING TOGETHER. BUILD
Slide 30: Total Revenue
TOTAL REVENUE NASDAQ: PEBO RECORD TOTAL REVENUE IN 2024 RECORD TOTAL REVENUE IN 2024 $500,000 $103,092 $93,950 $400,000 $339,374 $348,701 $79,513 $300,000 $253,442 $69,254 $200,000 $172,553 $100,000 $27,462 $85,255 $0 FY-21 FY-22 FY-23 FY-24 YTD-25 NETINTERESTINCOME NON-INTERESTINCOME, EXCLUDING GAI
Slide 31: Non-Interest Revenue Composition
NON-INTEREST REVENUE COMPOSITION NASDAQ: PEBO NASDAQ: PEBO SOURCES OF FEE BASED INCOME NON-INTEREST INCOME 4 NON-INTEREST INCOME YTD 2025 TOTAL INSURANCE REVENUE YTD 2025 YTD 2025$27 MILLION $6 MILLION TOTAL INVESTMENT REVENUE YTD 2025 $5 MILLION PROPERTY & C 11% COMMERICAL 1 FIDUCIARY PERFORMANC 2
Slide 32: Expense & Efficiency Ratio
EXPENSE & EFFICIENCY RATIO NASDAQ: PEBO THE RECENT ESCALATION IN EXPENSE WAS DUE OUR YTD-25 EFFICIENCY RATIO IS 60.68% TO ACQUISITIONS, AN INCREASE IN FTE1 DUE TO GROWTH, AND TECHNOLOGY INVESTMENTS. CORE NON-INTEREST EFFICIENCY RATIO ADJUSTED EXPENSE* FOR NON-CORE ITEMS* EFFICENCY RATIO ADJUSTED FOR
Slide 33: Improvement in Key Metrics
IMPROVEMENT IN KEY METRICS NASDAQ: PEBO NASDAQ: PEBO RETURN ON AVERAGE ASSETS HAS BEEN AT LEAST 1.1% SINCE 2021 RETURN ON AVERAGE ASSETS RETURN ON AVERAGE TANGIBLE STOCKHOLDERS’ ADJUSTED FOR NON-CORE ITEMS1 EQUITY ADJUSTED FOR NON-CORE ITEMS1 RETURN ON AVERAGE ASSETS ADJUSTED FOR NON-CORE ITEMS RETU
Slide 34: Total Loan Growth
TOTAL LOAN GROWTH NASDAQ: PEBO TOTAL LOANS* WERE $6.4 BILLION AS OF MARCH 31, 2025 TOTAL LOANS* AS OF MARCH 31, 2025 $7,000 LIMESTONE ACQUIRED LOANS LIMESTONE ACQUIRED LOANS PREMIER PREMIERFINANCIAL BANCORP, FINANCIAL BANCORP, INC. INC, ACQUIRED ACQUIRED LOANS LOANS ($ MILLIONS) TOTALLOANS TOTAL PPP
Slide 35: Deposit Growth
DEPOSIT GROWTH NASDAQ: PEBO NASDAQ: PEBO 34% OF DEPOSIT BALANCES AS OF MARCH 31, 2025 WERE DEMAND DEPOSIT ACCOUNTS (DDAS), INCLUDING $1.5 BILLION OF NON-INTEREST BEARING DDAS DEPOSIT BALANCES AS OF DECEMBER 31, 2024 $10,000 $8,000 BROKERED CERTIFICATES BROKERED CERTIFICATES OF DEPOSIT OF DEPOSIT $6,
Slide 36: 2025 Financial Expectations
2025 FINANCIAL EXPECTATIONS NASDAQ: PEBO 2025 NET INTEREST ANTICIPATED TO BE BETWEEN 4.00% AND 4.20%, ASSUMING 50 BASIS MARGIN POINT REDUCTION IN RATES FROM FEDERAL RESERVE IN 2025 FEE-BASED INCOME ANTICIPATE GROWTH IN THE MIDDLE SINGLE DIGITS COMPARED TO 2024 ANTICIPATE THE QUARTERLY RUN RATE FOR P
Slide 37: Q1 2025 Appendix
NASDAQ: PEBO NASDAQ: PEBO Q1 2025 APPENDIX ® WORKING TOGETHER. BUILDING SUCCESS. 37
Slide 38: Appendix Non-US GAAP Measures: Core Non-Interest Income
APPENDIX NON-US GAAP MEASURES NASDAQ: PEBO CORE NON-INTEREST INCOME Core non-interest income is a financial measure use by Peoples’ recurring non-interest revenue stream. This measure is non-US GAAP since it excludes the impact of all gains and/or losses. ($ in Thousands) FY-20 FY-21 FY-22 FY-23 FY-
Slide 39: Appendix Non-US GAAP Measures: Efficiency Ratio
APPENDIX NON-US GAAP MEASURES NASDAQ: PEBO EFFICIENCY RATIO AND ADJUSTED FOR NON-CORE ITEMS The efficiency ratio is a key financial measure used to monitor performance. The efficiency ratio is calculated as total non-interest expense (less amortization of other intangible assets) as a percentage of
Slide 40: Appendix Non-US GAAP Measures: Tangible Equity and Book Value
APPENDIX NON-US GAAP MEASURES NASDAQ: PEBO TANGIBLE EQUITY TO TANGIBLE ASSETS AND TANGIBLE BOOK VALUE PER SHARE Peoples uses tangible capital measures to evaluate the adequacy of Peoples’ stockholders’. Such ratios represent non-US GAAP financial measures since the calculation removes the impact of
Slide 41: Appendix Non-US GAAP Measures: Return on Average Assets
APPENDIX NON-US GAAP MEASURES NASDAQ: PEBO RETURN ON AVERAGE ASSETS AND ADJUSTED FOR NON-CORE ITEMS The return on average assets adjusted for non-core items represents a non-US GAAP financial measure since it excludes the after-tax impact of all gains and losses, COVID-19-related expenses, COVID-19
Slide 42: Appendix Non-US GAAP Measures: Return on Tangible Equity
APPENDIX NON-US GAAP MEASURES NASDAQ: PEBO RETURN ON AVERAGE TANGIBLE STOCKHOLDERS’ EQUITY The return on average tangible stockholders’ equity ratio is a key financial measure used to monitor performance. It is calculated as net income (less after-tax impact of amortization of other intangible asset
Slide 43: Appendix Non-US GAAP Measures: Return on Average Equity
APPENDIX NON-US GAAP MEASURES NASDAQ: PEBO RETURN ON AVERAGE STOCKHOLDERS’ EQUITY ADJUSTED FOR NON-CORE ITEMS The return on average stockholders' equity adjusted for non-core items represents a non-US GAAP financial measure since it excludes the after-tax impacts of all gains and losses, acquisition
Slide 44: Tyler Wilcox and Katie Bailey Contact Details
TYLER WILCOX President and Chief Executive Officer 740.373.7737 Tyler.Wilcox@pebo.com KATIE BAILEY Executive Vice President Chief Financial Officer and Treasurer 740.376.7138 Kathryn.Bailey@pebo.com Peoples Bancorp® is a federally registered service mark of Peoples Bancorp Inc. The three arched ribb