What Happened?
Shares of regional banking company Peoples Bancorp (NASDAQ: PEBO) fell 3.1% in the morning session after the company reported second-quarter earnings that fell short of analyst expectations.
The company announced net income of $21.2 million, or $0.59 per diluted common share, for the second quarter of 2025. This missed the consensus earnings per share (EPS) estimate of $0.78. The decline in profit from the prior year was largely driven by a significant increase in the provision for credit losses, which rose to $16.6 million. This increase was attributed to net charge-offs and a deterioration in economic forecasts. While the bank showed strong annualized loan growth of 11% and a slight expansion in its net interest margin—the difference between interest earned on loans and paid on deposits—these positives were overshadowed by the earnings miss and credit quality concerns. The company also announced a quarterly cash dividend of $0.41 per share.
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What Is The Market Telling Us
Peoples Bancorp’s shares are not very volatile and have only had 5 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
Peoples Bancorp is down 1% since the beginning of the year, and at $30.92 per share, it is trading 14.2% below its 52-week high of $36.02 from November 2024. Investors who bought $1,000 worth of Peoples Bancorp’s shares 5 years ago would now be looking at an investment worth $1,517.
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