Peoples Bancorp in Marietta, Ohio, reported improved quarterly profit despite repositioning its balance sheet and recording a loan-loss provision.
The $7.3 billion-asset company said in a press release that first-quarter net income rose 13% from a year earlier, to $26.6 million.
Peoples sold $96.7 million of lower-yielding securities at an after-tax loss of $1.6 million. The proceeds were used to pay down overnight borrowings.
The realized losses should be earned back during the 2023 fiscal year.
The company also recorded a $1.9 million loan-loss provision, compared to a $6.8 million recovery a year earlier.
Balance sheet growth and a widening margin largely accounted for the higher earnings. Deposits rose by 1.3%, to $5.8 billion. Loans increased by 1.1%, to $4.8 billion.
The margin expanded by 112 basis points, to 4.53%, and net interest income increased by 34%, to $72.9 million.