NASDAQ$PEBO

Peoples Bancorp Inc · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Reported net income and diluted earnings per share improved compared to the linked quarter and the prior year quarter.

Peoples Bancorp reported a strong second quarter with net income of $24.9 million and diluted earnings per share of $0.88. The company benefited from recent acquisitions, organic growth, and positive operating leverage. Net interest income increased, and non-interest expense was controlled.

  • Net income nearly doubled during the first half of 2022, compared to 2021, and exceeded the full year of 2021.
  • Net interest income was up 13% compared to the linked quarter, benefiting from rising interest rates and accretion income from Vantage Financial leases.
  • The reported efficiency ratio improved to 58.8%, the lowest in many years.
  • Loan balances increased by nearly $41 million, or 4% annualized, compared to the linked quarter-end, excluding purchase accounting adjustments related to Vantage and PPP loans.

Headline financials

Total Revenue

$80.9M

Previous: $142K+56839.4%
EPS (adj)

$0.90

Previous: $0.61+47.5%
Efficiency Ratio

58.8%

Previous: 68.6%-14.3%
Net Interest Margin

0.4%

Previous: 3.5%-87.5%
Total Capital Ratio

12.8%

No prior period
Capital Expenditures

-$3.46M

Previous: -$2.85M-21.5%
Free Cash Flow

$21.4M

Previous: $7.25M+195.4%
Net Income

$24.9M

Previous: $10.1M+146.3%
Operating Income

$31.7M

Previous: $12.5M+154.0%
Gross Profit

$80.1M

Previous: -$2.95M+2818.1%
Cash & Equivalents

$398M

Previous: $246M+61.9%
Total Assets

$7.28B

Previous: $5.07B+43.6%
Stock-Based Comp

-$128K

Previous: $443K-128.9%

Revenue & EPS history

Peoples Bancorp · Revenue · Quarterly

$80.9M

Q2 2022+56,839.4%vs Q2 2021
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Forward guidance

Peoples Bancorp expects to continue growing its business and recent acquisitions. Loan growth is projected between 4-6%, and the efficiency ratio is expected to be below 60% for the full year of 2022. Earnings over the next two quarters are expected to be similar to this quarter.

Tailwinds

  • Loan growth of between 4-6%, excluding PPP loans
  • Annual gross charge-off rate, including leases, will likely return to a more historical level of between 20 to 30 basis points as a percent of balances for the second half of 2022
  • If we get 7 rate increases of 25 basis points, five of those being in the third quarter and the remainder in the fourth quarter, this would result in a benefit of approximately $3 million for the last half of the year.
  • Fee-based income growth is expected to be between 12% and 16% compared to 2021, which includes the impact of the acquisitions this year
  • Still on track to have an efficiency ratio of below 60% for the full year of 2022

Headwinds

  • We continue to anticipate stabilization in credit costs
  • From a net interest income perspective, if we get 7 rate increases of 25 basis points, five of those being in the third quarter and the remainder in the fourth quarter, this would result in a benefit of approximately $3 million for the last half of the year. This amount does not include the increase we expect from the prior rate hikes this year, which will also benefit the last six months of the year.
  • Fee-based income growth is expected to be between 12% and 16% compared to 2021, which includes the impact of the acquisitions this year
  • We are maintaining our projected quarterly total non-interest expense guidance of between $50 and $52 million, which includes the cost of the Vantage and insurance acquisitions
  • While we have had recent releases in provision for credit losses, we do not anticipate this will be the reason we achieve similar earnings in the last two quarters of the year.

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 Q2 2022

Historical avgQ2 2022

+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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