What drove PEBO's strong earnings in 2024?

Peoples Bancorp Inc. (PEBO) experienced strong earnings in 2024, driven by several key factors:

1. **Net Interest Income Growth**: The company reported a 3% increase in net interest income for the year, primarily driven by higher market interest rates and contributions from the Limestone Merger. This strategic move has bolstered the bank's income stream and resilience in a competitive banking environment.
2. **Fee-Based Income Growth**: Peoples Bancorp witnessed a 10% year-over-year growth in fee-based income, reflecting successful diversification of revenue streams and strengthening of its financial performance. This growth was fueled by robust fee-based income and improved deposit balances.
3. **Strategic Mergers and Acquisitions**: The Limestone Merger has been instrumental in enhancing the bank's market position and profitability. The merger has allowed for the integration of operations and the expansion of the bank's service offerings, which has positively impacted the bottom line.
4. **Efficient Cost Management**: Despite challenges in net interest income, the bank managed to maintain profitability by keeping non-interest expenses under control. For instance, there was a 4% decrease in total non-interest expenses in Q3 2024, leading to an improved efficiency ratio.

In conclusion, Peoples Bancorp's strong earnings in 2024 can be attributed to a combination of factors, including growth in net interest income, robust fee-based income, strategic mergers, and efficient cost management. These elements collectively contribute to the bank's robust financial performance and resilience in the face of market challenges.