Marietta, Ohio-based Peoples Bancorp Inc . (NASDAQ:PEBO) has disclosed its financial performance for the third quarter and first nine months of 2024, reflecting a mix of core and non-core financial measures. The company, which held a conference call on Monday to discuss these results, has provided non-GAAP financial metrics to aid investors in understanding its operational efficiency and comparative industry performance.
For the quarter ended September 30, 2024, Peoples Bancorp reported core non-interest expenses of $66.8 million, a decrease from the $71.7 million reported in the same period last year. Adjustments for non-core items, such as acquisition-related expenses and pension settlement charges, were made to arrive at this figure. The efficiency ratio, a measure of the bank’s cost management relative to its revenue, stood at 55.10% for the quarter, showing an improvement from the 58.38% reported for the third quarter of 2023.
The company also reported an adjusted net income of $31.8 million for the third quarter, with annualized returns on average assets and average tangible equity of 1.38% and 19.40%, respectively. These performance metrics are adjusted for non-core items like investment securities losses and asset disposals.
Peoples Bancorp's tangible book value per common share increased to $20.29 as of September 30, 2024, up from $16.52 in the same period last year. The bank's tangible equity to tangible assets ratio also saw an increase to 8.25%.
The financial statements and exhibits related to these operational results have been furnished to the Securities and Exchange Commission (SEC) and are available for public access. This information is based on a press release statement and has not been independently verified.
Investors may find the detailed non-GAAP reconciliations and the discussion of non-core items useful in assessing the bank's underlying performance. The bank's management emphasizes that the non-GAAP financial measures provide insights into trends and allow for a more comprehensive comparison with peers.
In other recent news, Peoples Bancorp reported a successful third quarter in 2024, with an increase in earnings per share, net interest income, and fee-based income. The company's diluted EPS rose to $0.89 from $0.82 in the previous quarter, while net interest income and fee-based income grew by 3% and 5% respectively. Concurrently, non-interest expenses decreased by 4%, leading to an improved efficiency ratio of 55.1%.
The bank also reported a growth in total deposits by $185 million, with a significant client deposit increase surpassing $100 million. Despite a decline in criticized loans, classified loans increased due to two downgrades totaling nearly $10 million.
Looking ahead, Peoples Bancorp anticipates continued loan growth and a healthy commercial loan pipeline for Q4. The bank also expects positive operating leverage and stabilization of net interest margins for 2025. However, a modest decline in net interest income and margin is expected in Q4 2024 due to anticipated Federal Reserve rate cuts.
InvestingPro Insights
To complement Peoples Bancorp Inc.'s (NASDAQ:PEBO) recent financial disclosures, InvestingPro data offers additional context for investors. The company's P/E ratio of 8.86 suggests that the stock may be undervalued relative to its earnings, which aligns with the reported improved efficiency ratio and adjusted net income.
Moreover, PEBO's dividend yield stands at an attractive 5.27%, supported by a strong dividend history. An InvestingPro Tip highlights that Peoples Bancorp has maintained dividend payments for 51 consecutive years, demonstrating a commitment to shareholder returns that may appeal to income-focused investors.
Despite the positive dividend track record, another InvestingPro Tip cautions that 6 analysts have revised their earnings downwards for the upcoming period. This could indicate some near-term headwinds that investors should consider alongside the reported financial metrics.
For a more comprehensive analysis, InvestingPro offers 7 additional tips for PEBO, providing deeper insights into the company's financial health and market position.
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