Peoples Bancorp Inc (Marietta OH) (PEBO, Financial) announced its Q3 2023 results on October 24, 2023, reporting a record net income of $31.9 million. This represents earnings per diluted common share of $0.90, a significant increase from $0.64 in Q2 2023 and $0.92 in Q3 2022. For the first nine months of 2023, the company recorded a net income of $79.5 million, or $2.47 per diluted common share, compared to $74.4 million, or $2.65 per diluted common share, for the same period in 2022.
Financial Performance and Challenges
The provision for credit losses negatively impacted earnings per diluted common share by $0.09 for Q3 2023, compared to $0.19 for Q2 2023, and $0.05 for Q3 2022. For the first nine months of 2023, the provision negatively impacted earnings per diluted common share by $0.33, compared to the release of provision positively impacting earnings per diluted common share by $0.16 for the first nine months of 2022.
Financial Achievements
Non-core items, primarily including acquisition-related expenses and a $2.4 million pension settlement charge, negatively impacted earnings per diluted common share by $0.16 for Q3 2023, $0.28 for Q2 2023, and $0.01 for Q3 2022. Non-core items negatively impacted earnings per diluted share by $0.52 and $0.07 for the nine months ended September 30, 2023 and 2022, respectively.
Key Details from Financial Statements
Peoples Bancorp reported a net interest income increase of $8.4 million, or 10%, compared to the linked quarter and an increase of $26.2 million, or 39%, compared to Q3 2022. The net interest margin increased 16 basis points to 4.70% for Q3 2023, compared to 4.54% for the linked quarter and increased 53 basis points compared to 4.17% for Q3 2022.
Company's Performance Analysis
Peoples Bancorp's strong performance in Q3 2023 is attributed to its robust earnings and asset quality. The company also benefited from its merger with Limestone Bancorp, Inc., which was completed in April 2023. The merger, valued at $177.9 million, contributed to the company's impressive financial performance in the third quarter.
Other Pertinent Details
During Q3 2023, Peoples Bancorp terminated its pension plan by settling the remaining benefit obligation of $7.7 million. The company recorded a settlement charge of $2.4 million in relation to the termination of the pension plan and does not anticipate further expenses related to the termination.
