Peoples Bancorp Reports $21.2 Million Net Income in Q2 2025, Down from $29 Million Last Year

Peoples Bancorp Inc. reported a net income of $21.2 million for the second quarter of 2025, translating to earnings per diluted share of $0.59. This marks a decrease from the $29.0 million net income, or $0.82 per diluted share, recorded in the same quarter of 2024. For the first half of 2025, net income totaled $45.5 million, down from $58.6 million in the prior year. The decline in profitability is attributed to a significant increase in the provision for credit losses, which rose to $16.6 million in the second quarter, compared to $5.7 million in the same quarter last year. The provision increase was driven by net charge-offs, higher reserves for individually analyzed loans, and a refresh in loss drivers used in the Current Expected Credit Loss (CECL) model.

Total assets for Peoples Bancorp increased to $9.54 billion as of June 30, 2025, up from $9.25 billion at the end of 2024. This growth was primarily fueled by an increase in loans and leases, which rose to $6.60 billion, compared to $6.36 billion at the end of the previous fiscal year. The bank's total deposits also saw a modest increase, reaching $7.64 billion, up from $7.59 billion at the end of 2024. Notably, non-interest-bearing deposits increased to $1.53 billion, while interest-bearing deposits rose to $6.11 billion, reflecting a strategic focus on enhancing deposit growth.

In terms of operational metrics, Peoples Bancorp's net interest income for the second quarter was $87.6 million, a slight increase from $86.6 million in the previous quarter. The net interest margin improved to 4.15%, up from 4.12% in the first quarter of 2025, driven by lower deposit and borrowing costs. However, the margin decreased slightly compared to 4.18% in the second quarter of 2024, primarily due to reduced loan yields. The bank's efficiency ratio for the second quarter was 59.3%, an improvement from 60.7% in the previous quarter, indicating better cost management relative to revenue generation.

Peoples Bancorp continues to focus on strategic growth initiatives, including the expansion of its loan portfolio and enhancing its digital banking services. The bank operates 145 locations across several states, including Ohio, Kentucky, and West Virginia. The management remains optimistic about future growth, despite the challenges posed by rising interest rates and economic uncertainties. The bank's capital ratios remain strong, with a Common Equity Tier 1 ratio of 11.95% as of June 30, 2025, indicating a solid capital position to support ongoing operations and potential growth opportunities.