Peoples Bancorp announces quarterly earnings
MARIETTA – Peoples Bancorp Inc. announced results for the first and second quarters ending June 30.
Net income was $3.5 million for the second quarter of 2014, representing earnings per diluted share of 32 cents.
In comparison, net income was $4.8 million or 44 cents per diluted share for the first quarter of 2014, and $4.9 million or 46 cents per diluted share for the second quarter of 2013. On a year-to-date basis, net income totaled $8.3 million, or 76 cents per diluted share, through June 30, versus $9.9 million, or 93 cents per diluted share, a year ago.
“Our revenue growth remained positive for the quarter. Loan growth provided much of the momentum with 11 percent annualized organic growth,” said Chuck Sulerzyski, president and chief executive officer. “We are pleased with our second quarter earnings, given the increase in costs incurred was largely a result of our strategic actions. Our acquisition activity resulted in expenses during the quarter and our continued loan growth resulted in increased provision for loan losses during the quarter, which we had not incurred since the third quarter of 2011.”
Peoples completed the acquisition of Midwest Bancshares Inc. on May 30. The cash and stock transaction resulted in Peoples acquiring two full-service banking offices in Wellston and Jackson, Ohio, adding $59.7 million of loans and $78.1 million of deposits after fair value adjustments.
Second quarter net interest income was $16 million, up 4 percent compared to the linked quarter and 22 percent higher than the prior year’s second quarter, while net interest margin for these periods was 3.39 percent, 3.35 percent and 3.13 percent, respectively. These improvements were driven largely by growth in earning assets due to higher loan balances, stabilization in asset yields and the change in the asset mix. The acquired balances and accretion income from the Midwest acquisition added approximately 3 basis points of net interest margin in the second quarter of 2014.
“During the quarter, we continued to make progress in improving our balance sheet structure by reducing the relative size of our investment portfolio. Our investments accounted for 31 percent of our total assets at the end of the second quarter, compared to 33 percent at year-end and 35 percent a year ago,” said Ed Sloane, chief financial officer and treasurer.
“We are pleased with this accomplishment, which was driven mostly by the strong loan growth over the last two quarters. We will continue to look for opportunities to reduce the size of the investment portfolio. Our net interest income also continued to benefit from the shift from higher-cost wholesale funding and deposits to low-cost core deposits.”
Peoples Bancorp Inc. is a diversified financial services holding company with $2.2 billion in assets, 50 locations and 50 ATMs in Ohio, West Virginia and Kentucky.