Peoples Bancorp Inc. · NASDAQ:PEBO
Peoples Bancorp — Peoples Bancorp of North Carolina — Q2 2025 Earnings Presentation
15 slides from Peoples Bancorp's earnings presentation, Jul 22, 2025
Slide 1: Second Quarter 2025 Earnings Conference Call
Second Quarter 2025 Earnings Conference Call July 22, 2025 1
Slide 2: Safe Harbor Statement
Safe Harbor Statement Statements in this presentation which are not historical facts 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 Ref
Slide 3: Use of Non-US GAAP Financial Measures
Use of Non-US GAAP Financial Measures This presentation contains financial information and performance measures determined by methods other than those in accordance with accounting principles generally accepted in the United States of America (“US GAAP”). Management uses these “non-US GAAP” financia
Slide 4: Second Quarter 2025 Financial Highlights
Second Quarter 2025 Financial Highlights • Annualized loan growth of 11% Net income was $21.2 million, or $0.59 of diluted earnings per share (“EPS”) • Annualized net charge-off rate declined to 43 basis points, with lower leasing charge-offs – Impacted by higher provision for credit losses (see sli
Slide 5: Loan Balances by Segment
Loan Balances by Segment Loan Balances and Yields Loans Balances by Segment (Dollars in billions) (As of Most Recent Quarter-End) 5% 7.16% 7.27% 7.01% 6.77% 6.71% 29% 22% $4.64 $4.69 $4.80 $4.92 $5.13 10% 11% 23% $1.69 $1.59 $1.56 $1.51 $1.47 Consumer loans Owner occupied commercial real estate Non-
Slide 6: North Star Leasing
North Star Leasing North Star Leasing North Star Leasing by Segment (As of Most Recent Quarter-End) 14.43% 14.49% 14.69% 14.35% 13.99% 14.24% 14.14% 21% 13.80% 13.35% 33% 11.97% 11.51% 13% 6.95% 6% 10% 8% 9% 4.08% Restaurant Titled - Vocational 1.54% 1.65% TItled - Trucking/Trailer/Fleet 1.32% Brewe
Slide 7: North Star Leasing (High Balance Accounts)
North Star Leasing (High Balance Accounts) High Balance Accounts We have significantly reduced our exposure to (dollars in thousands) high balance small-ticket leasing accounts $60,000 – The portfolio declined more than 50% in the last year – We stopped originating new high balance small- ticket lea
Slide 8: Asset Quality
Asset Quality Asset Quality Metrics The allowance for credit losses grew to 1.13% of loans – Our annualized net charge-off rate declined to 43 3.79% 3.79% 3.80% 3.70% basis points compared to 52 basis points for the 3.52% linked quarter – Nonperforming assets declined compared to March 31st – Critic
Slide 9: Provision for Credit Losses and Net Charge-Offs
Provision for Credit Losses and Net Charge-Offs 2Q 2025 Provision for Credit Losses Provision for credit losses grew compared to the (dollars in millions) linked quarter – Net charge-offs have been heavily impacted in recent $1.0 quarters by small-ticket leasing – Excluding small-ticket leasing, net
Slide 10: Net Interest Income
Net Interest Income Net Interest Income Accretion Income Net interest income grew over (Dollars in Thousands) (Dollars in Thousands) $2 million compared to the $173,253 $172,832 linked quarter, and net interest $12,253 $86,613 $85,255 $87,577 margin expanded 3 basis $5,754 $6,073 points $3,481 $2,59
Slide 11: Non-Interest Income
Non-Interest Income Non-Interest Income Non-interest income, excluding gains and losses, (Dollars in Thousands) declined 1% compared to the linked quarter – Reduction compared to the linked quarter was driven by performance-based insurance commissions that are recognized $53,979 annually in the firs
Slide 12: Non-Interest Expense
Non-Interest Expense Non-interest expense declined compared to the linked quarter, Non-Interest Expense and was within the guided range (Dollars in Thousands) – The majority of the reduction was in salaries and employee benefit costs, $137,223 $141,149 which were higher in the linked quarter due to
Slide 13: Deposits
Deposits Deposit Balances and Costs Deposit Balances by Segment (Dollars in billions) (As of Most Recent Quarter-End) 6% 20% 1.94% 2.02% 1.96% 12% 1.84% 1.76% $6.08 $6.21 $6.11 10% $5.83 $6.03 14% 12% 26% Non-interest-bearing deposits Interest-bearing demand accounts $1.47 $1.45 $1.51 $1.53 $1.53 Re
Slide 14: Capital
Capital Capital Metrics 13.58% 13.75% 13.71% 13.44% 13.42% 12.39% 12.54% 12.39% 12.18% 12.24% 11.95% 12.10% 11.95% 11.74% 11.80% 9.59% 9.73% 9.80% 9.83% 9.29% 8.25% 8.34% 8.26% 8.01% 7.61% 6/30/2024 9/30/2024 12/31/2024 3/31/2025 6/30/2025 Common equity tier 1 capital ratio Tier 1 risk-based capital
Slide 15: 2025 Outlook
2025 Outlook A high level look at our expectations for 2025, excluding non-core expenses: Operating Leverage – Expect to generate positive operating leverage for 2025, compared to 2024 Net Interest Income – Assuming three 25 basis point rate reductions by the Federal Reserve in the second half of 20
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