NASDAQ$PEBO

Peoples Bancorp Inc · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Reported an increase in net income and improved efficiency ratio.

Peoples Bancorp reported an increase in net income for the third quarter, with diluted earnings per share of $0.92. The company's efficiency ratio improved, and revenue grew faster than expenses. Return on average stockholders’ equity and return on average assets also increased.

  • Efficiency ratio improved to 57.2%, compared to 58.8% for the linked quarter.
  • Generated positive operating leverage, meaning revenues grew faster than expenses, compared to the linked quarter.
  • Return on average stockholders’ equity grew 31 basis points to 12.92%, while return on average assets increased 5 basis points to 1.45% compared to the linked quarter.
  • Net interest income was up 9% over the linked quarter, to $67.1 million, with net interest margin at 4.17%.

Headline financials

Total Revenue

$87.4M

Previous: $59.7M+46.3%
EPS (adj)

$0.92

Previous: $0.43+114.0%
Efficiency Ratio

57.2%

Previous: 63.9%-10.5%
Net Interest Margin

4.2%

Previous: 3.5%+19.1%
Capital Expenditures

-$7.01M

Previous: $3.04M-330.3%
Free Cash Flow

$19M

Previous: $25M-24.1%
Net Income

$26M

Previous: -$5.8M+547.9%
Operating Income

$33.4M

Previous: -$7.93M+521.0%
Gross Profit

$85.6M

Previous: $57.2M+49.7%
Cash & Equivalents

$145M

Previous: $500M-70.9%
Total Assets

$7.01B

Previous: $7.06B-0.8%
Stock-Based Comp

-$126K

Previous: -$60K-110.0%

Revenue & EPS history

Peoples Bancorp · Revenue · Quarterly

$87.4M

Q3 2022+46.3%vs Q3 2021
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Forward guidance

Peoples Bancorp provided guidance for the fourth quarter and full year of 2022, excluding one-time items, and also provided guidance for 2023, excluding the impact of Limestone.

Tailwinds

  • Expect loan growth for the full year of between 4-6%, excluding PPP loans.
  • There is still some opportunity for net interest margin expansion in the fourth quarter, but this will be at a slower pace than our third quarter growth.
  • Still on track to have an efficiency ratio of below 60% for the full year of 2022.
  • Believe net interest margin for 2023 will be between 4.40% and 4.60%, which assumes relatively flat rates for 2023 as compared to year-end 2022.
  • Anticipate loan growth of between 5 and 7% in 2023.

Headwinds

  • Continue to believe credit costs will grow in future quarters to our historical levels.
  • Anticipate that our quarterly net charge-off rate, including leases, will be between 20 to 30 basis points as a percent of balances for the fourth quarter of 2022.
  • Target between $51 and $53 million for our total quarterly non-interest expenses for the fourth quarter.
  • Projecting quarterly non-interest expenses of between $56 and $58 million in 2023.
  • Expect an increase of about 5 basis points in our 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 Q3 2022

Historical avgQ3 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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