Peoples Bancorp Inc. · NASDAQ:PEBO
Peoples Bancorp — Q2 2024 Earnings Presentation
11 slides from Peoples Bancorp's earnings presentation, Jul 23, 2024
Slide 1: Second Quarter 2024 Earnings Conference Call
1 Second Quarter 2024 Earnings Conference Call July 23, 2024
Slide 2: Safe Harbor Statement
1 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 Act of 1995. These for
Slide 3: Second Quarter 2024 Financial Highlights
2 • Loan growth of 8% annualized • Improvements in our criticized and classified loans, which declined 6% and 19%, respectively, mostly due to paydowns • Core deposits grew by $42 million for the quarter, which excludes brokered CDs ◦ We have been able to reduce our brokered CD balances, as we gener
Slide 4: Loans
3 Loans Balances by Segment 29% 12%20% 11% 28% Consumer loans Owner occupied commercial real estate Non-owner occupied commercial real estate Specialty finance Other commercial loans Loan Balances and Yields (Dollars in billions) $2.03 $1.93 $1.83 $1.76 $1.69 $3.94 $4.16 $4.33 $4.45 $4.64 6.55% 7.13
Slide 5: Asset Quality Metrics
4 Asset Quality Metrics 3.68% 3.50% 3.82% 4.14% 3.79% 1.86% 2.05% 1.95% 2.38% 1.90% 1.02% 1.03% 1.01% 1.05% 1.05% 0.48% 0.48% 0.43% 0.50% 0.53% Criticized loans as a % of total loans Classified loans as a % of total loans Allowance for credit losses as a % of total loans Nonperforming assets as a %
Slide 6: Net Interest Income
5 Second quarter 2024 NIM was impacted by 4 basis point decline in accretion income – Excluding the accretion income impact, NIM was down 4 basis points compared to the linked quarter We implemented a deposit pricing strategy to bring in short-term higher-rate retail CDs in 2023 Net Interest Income
Slide 7: Non-Interest Income
6 Non-interest income for the second quarter of 2024 declined 8% compared to the linked quarter – The reduction was mostly due to the first quarter recognition of annual performance-based insurance commissions of $2.2 million – Growth in electronic banking and trust and investment income offset decl
Slide 8: Non-Interest Expense
7 – Core non-interest expense was relatively flat compared to the linked quarter – Core non-interest expense was higher for the first half of 2024 due to the larger footprint and ongoing operating costs of the Limestone Merger Core Non-Interest Expense (Dollars in Thousands) $60,462 $68,549 $68,758
Slide 9: Deposit Balances by Segment
8 Deposit Balances by Segment 20% 15% 25% 12% 10% 12% 6% Non-interest-bearing deposits Interest-bearing demand accounts Retail certificates of deposit Money market deposit accounts Governmental deposit accounts Savings accounts Brokered deposits Deposit Balances and Costs (Dollars in billions) $1.68
Slide 10: Capital Metrics
9 Capital Metrics 11.36% 11.57% 11.75% 11.69% 11.76% 12.10% 12.31% 12.58% 12.50% 12.55% 12.92% 13.14% 13.38% 13.40% 13.47% 9.64% 9.34% 9.57% 9.43% 9.65% 7.00% 6.85% 7.33% 7.37% 7.61% Common equity tier 1 capital ratio Tier 1 risk-based capital ratio Total risk-based capital ratio Leverage ratio Tang
Slide 11: 2024 Full Year Expectations
10 Our 2024 full year expectations are as follows: Net Interest Income – Benefit from the full year impact of the Limestone Merger, but also affected by projected market interest rate reductions during 2024, estimating quarterly net interest margin of between 4.10% and 4.30%, which assumes no signif