NASDAQ$PEBO

Peoples Bancorp Inc · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Reported strong quarterly earnings driven by a diversified business model and strong core deposit franchise.

Peoples Bancorp reported strong first quarter earnings with a diluted EPS of $0.94. The company saw improvements in net interest income and fee-based income, and maintained strong capital ratios. The acquisition of Limestone is on track, with an expected close at the end of April.

  • Diluted EPS totaled $0.94, impacted by acquisition-related expenses.
  • Net interest income increased by 3% with net interest margin expansion of 9 basis points.
  • Fee-based income grew by 9%, primarily due to annual performance-based insurance income.
  • Tangible equity to tangible assets ratio improved to 7.1%.

Headline financials

Total Revenue

$91.9M

Previous: $74.4M+23.6%
EPS (adj)

$0.96

Previous: $0.88+9.1%
Efficiency Ratio

57.8%

Previous: 66.8%-13.5%
Capital Expenditures

-$2.76M

Previous: -$2.05M-34.3%
Free Cash Flow

$23.8M

Previous: $21.5M+10.6%
Net Income

$26.6M

Previous: $23.6M+12.7%
Operating Income

$33.6M

Previous: $29.5M+13.8%
Gross Profit

$90.1M

Previous: $67.6M+33.4%
Cash & Equivalents

$157M

Previous: $406M-61.3%
Total Assets

$7.31B

Previous: $7.24B+1.0%
Stock-Based Comp

-$136K

Previous: -$124K-9.7%

Revenue & EPS history

Peoples Bancorp · Revenue · Quarterly

$91.9M

Q1 2023+23.6%vs Q1 2022
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Forward guidance

Peoples Bancorp anticipates continued net interest income growth, loan growth between 25% and 30% including Limestone balances, and fee-based income growth in the low double-digits for the remainder of 2023. The company expects the efficiency ratio to be between 55% and 57% for the full year, including the impact of Limestone.

Tailwinds

  • Net interest income to continue to grow due to the impact of the Limestone merger.
  • Full year benefits of higher market interest rates as loans reprice to the newest rate.
  • Loan growth of between 25 and 30%, including the new Limestone balances.
  • Annual organic loan growth without the acquired loans, will be between 5 and 7%.
  • Fee-based income percentage growth to be in the low double-digits compared to 2022.

Headwinds

  • Net interest margin expansion to slow through the year, as we continue to increase our funding costs.
  • Second quarter margin might come in below the full year range given the merger closing and related purchase accounting adjustments.
  • Anticipating a 21% increase in total non-interest expenses for 2023, excluding acquisition-related expenses.
  • Acquisition-related expenses during the second quarter of between $9 and $10 million, with another $4 to $5 million during the third quarter.
  • An increase of about 5 basis points in net charge-off rate during 2023, compared to 2022.

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 2023

Historical avgQ1 2023

+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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