Peoples Bancorp reported net income of $21.2 million for the second quarter of 2025, resulting in diluted earnings per common share of $0.59. This represents a decrease from $24.3 million and $0.68 per share in the first quarter of 2025, and $29.0 million and $0.82 per share in the second quarter of 2024. Net interest income increased by $2.3 million from the linked quarter to $87.6 million, primarily driven by lower deposit and borrowing costs.
The net interest margin expanded by three basis points to 4.15% in the second quarter of 2025, marking the fourth consecutive quarter of core net interest margin expansion, excluding accretion income. However, accretion income from acquisitions decreased to $2.6 million, contributing 12 basis points to NIM, down from $3.5 million in the linked quarter. The company achieved strong annualized loan growth of 11% compared to the linked quarter end, with balanced growth across all loan categories.
The provision for credit losses significantly increased to $16.6 million, up from $10.2 million in the linked quarter, driven by $7 million in net charge-offs, a $3.8 million increase in reserves on individually analyzed loans, and a $2.5 million increase in reserves for North Star Leasing. The small ticket leasing portfolio declined from $220 million at June 30, 2024, to $160 million at Q2 2025 quarter end, representing 2% of total loans. Deposit balances declined by 1%, or $98 million, during the quarter.
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