- Earnings will likely improve in the second half of the year because stability in the economic outlook will lead to a sequential decline in provision expense.
- The acquisition of a premium finance company and fees from the Paycheck Protection Program will likely support earnings.
- Around 14.5% of total loans required payment accommodations in the second quarter, which is a source of credit risks.
- The risks will likely restrain the stock price in the near term, despite the attractive valuation.
For further details see:
Peoples Bancorp: Credit Risks Overshadow Positive Earnings Outlook