NASDAQ$PEBO

Peoples Bancorp Inc · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

Reported a loss impacted by COVID-19 and CECL adoption.

Peoples Bancorp announced a loss of $0.04 per share for Q1 2020, heavily impacted by COVID-19 related developments and the implementation of the CECL accounting standard. The company approved 2,432 PPP loans for $426 million as of April 17, 2020, and is offering loan modifications and payment deferrals to clients. Despite the loss, the company saw loan growth of 5% annualized, core deposit growth of 7%, and a stable net interest margin of 3.51%.

  • Loss per diluted share of $0.04, impacted by $17 million of provision for credit losses.
  • Loan growth of 5% annualized compared to the linked quarter-end.
  • Core deposit growth of 7% from the linked quarter-end.
  • Net interest margin was relatively stable at 3.51%.

Headline financials

Total Revenue

$175K

Previous: $90K+94.4%
EPS (adj)

-$0.02

Previous: $0.64-103.1%
Capital Expenditures

-$1.03M

Previous: -$1.58M+35.1%
Free Cash Flow

-$1.79M

Previous: $12.8M-114.0%
Net Income

-$765K

Previous: $14.4M-105.3%
Operating Income

-$921K

Previous: $17.7M-105.2%
Gross Profit

-$16.8M

Previous: -$173K-9607.5%
Cash & Equivalents

$164M

Previous: $82.1M+99.4%
Total Assets

$4.47B

Previous: $4.02B+11.3%
Stock-Based Comp

$240K

No prior period

Revenue & EPS history

Peoples Bancorp · Revenue · Quarterly

$175K

Q1 2020+94.4%vs Q1 2019
Beat estimate in 3 of 16 quarters(19%)
ActualEstimate

Forward guidance

Peoples Bancorp provided guidance for the remainder of 2020, excluding large market changes and the impact of PPP and the premium financing company acquisition. They anticipate a net interest margin between 3.30% and 3.45%, total non-interest expense between $33 and $34 million per quarter, fee income to average $16 million per quarter, and loan growth to be between 0-2% for 2020 compared to year-end. They also expect to earn approximately $13 million in pre-tax income during 2020 from the SBA PPP and the premium finance company acquisition to be accretive to earnings by approximately 2 to 4 cents during 2020.

Tailwinds

  • Net interest margin between 3.30% and 3.45% for the last 9 months of 2020.
  • Fee income to average $16 million per quarter for the last three quarters of 2020.
  • Loan growth to be between 0-2% for 2020 compared to year-end.
  • Approximately $13 million in pre-tax income during 2020 from the SBA PPP.
  • Premium finance company acquisition will be accretive to earnings by approximately 2 to 4 cents during 2020, and 11 to 14 cents in 2021.

Headwinds

  • Impact of the pandemic on the loan portfolio will be manageable, but some losses are expected.
  • Businesses and consumers will take a cautionary stance after restrictions are lifted.
  • Economic recovery is expected to be slow.
  • One-time acquisition costs of between $500,000 and $750,000 during the remainder of 2020.
  • Future capital needs and the projected length and depth of any economic recession may impact the quarterly dividend.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2020

Historical avgQ1 2020

+0.1%

Avg return

Earnings day

+1.3%

Avg return

5 days after

+2.0%

Avg return

30 days after

63%

41 / 65 earnings

Positive

+8.4%

Q3 2020

Best reaction

-12.7%

Q3 2015

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.9%-1.8%-0.4%
Q4 2025+1.2%+0.6%+7.7%
Q3 2025+1.6%+4.9%-0.7%
Q2 2025+0.0%-1.6%+1.2%
Q1 2025+2.0%+4.0%+6.9%
Q3 2024+1.6%-0.3%+15.7%
Q2 2024-0.4%+1.8%-9.5%
Q1 2024+5.2%+4.2%+2.6%
Q4 2023-7.3%-3.0%-5.9%
Q3 2023+3.4%+7.0%+15.9%
Q2 2023+2.7%+1.0%-6.2%
Q1 2023+1.1%+1.7%+3.5%
Q4 2022+1.9%+3.7%+9.8%
Q3 2022-6.2%-2.5%-4.6%
Q2 2022+5.5%+8.9%+8.0%
Q1 2022-5.7%-8.4%-6.9%
Q4 2021+0.3%-0.8%-7.2%
Q3 2021-5.7%-3.8%-0.2%
Q2 2021+4.9%+3.5%+10.5%
Q1 2021+0.6%+0.2%-3.8%
Q4 2020-1.7%-2.2%+1.8%
Q3 2020+8.4%+13.4%+19.0%
Q2 2020+4.0%+5.5%+7.4%
Q1 2020-6.6%-5.5%-3.7%
Q4 2019+2.3%+0.7%-5.7%
Q3 2019+1.5%+0.5%+0.3%
Q2 2019+2.1%+2.5%-1.4%
Q1 2019+4.1%+3.6%+1.1%
Q4 2018+4.3%+4.7%+8.4%
Q3 2018-0.6%+0.9%+1.9%
Q2 2018-2.4%-4.8%-9.3%
Q1 2018+1.2%-1.1%+1.2%
Q4 2017+2.0%+5.8%+2.0%
Q3 2017+3.6%+3.4%+0.4%
Q2 2017+7.6%+5.3%-1.1%
Q1 2017+2.5%-0.8%-8.6%
Q4 2016-3.9%-3.4%+2.1%
Q3 2016+0.4%+0.4%+18.0%
Q2 2016+1.3%+1.2%+6.4%
Q1 2016+7.8%
Q4 2015+4.3%
Q3 2015-12.7%
Q2 2015-9.7%
Q1 2015-3.4%
Q4 2014-8.9%
Q3 2014-6.7%
Q2 2014+0.3%
Q1 2014+2.3%
Q4 2013+1.6%
Q3 2013+2.6%
Q2 2013+0.3%
Q1 2013+1.3%
Q4 2011+0.6%
Q4 2010+0.6%
Q4 2009+0.6%
Q4 2012-5.0%
Q3 2012-1.4%
Q2 2012+2.9%
Q1 2012+1.7%
Q3 2010-1.0%
Q3 2011-1.0%
Q2 2011-4.0%
Q2 2010-4.0%
Q1 2011-1.8%
Q1 2010-1.8%

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