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PEOPLES BANCORP INC. ANNOUNCES FOURTH QUARTER AND ANNUAL RESULTS FOR 2025

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MARIETTA, Ohio, Jan. 20, 2026 /PRNewswire/ -- Peoples Bancorp Inc. ("Peoples") (NASDAQ: PEBO) today ...

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AI Summary

Peoples Bancorp Inc. (PEBO) reported a Q4 2025 net income of $31.8 million, showing growth despite a decrease in net interest margin to 4.12% due to lower loan yields. The increase in provisions for credit losses could raise concerns about asset quality, while non-interest income showed positive momentum.

Sentiment Rationale

While PEBO showed positive earnings growth, factors such as declining net interest margin and rising provisions for credit losses cloud the overall outlook. Investors may prioritize stability in earnings over growth, which typically leads to a neutral sentiment.

Trading Thesis

PEBO is a hold as strong earnings counteract rising credit loss provisions; however, short-term volatility is expected.

Market-Moving

  • Increased provisions for credit losses may pressure earnings and investor sentiment.
  • Decline in net interest margin could lead to lower future profitability.
  • Improved non-interest income offers potential uplift.

Key Facts

  • Net income for Q4 2025 was $31.8 million, up from Q3 2025.
  • Provision for credit losses increased to $8.1 million from $7.3 million.
  • Net interest margin declined to 4.12% due to lower loan yields.
  • Non-interest income increased by 5%, mainly from lease income.
  • Total deposits decreased by $22 million compared to Q3 2025.

Companies Mentioned

  • Limestone Bancorp, Inc. (N/A): Past merger led to lower accretion income impacting net interest margins.

Earnings

This announcement falls under 'Earnings', showcasing PEBO's financial performance and indicating how macroeconomic factors are influencing profitability through net interest income and credit provisions.

Peoples Bancorp Inc. Reports Fourth Quarter and Annual Results for 2025

Peoples Bancorp Inc. ("Peoples") (NASDAQ: PEBO) has announced its financial results for the fourth quarter and full year ended December 31, 2025. The company reported a net income of $31.8 million for the fourth quarter, translating to earnings per diluted common share of $0.89. This is an increase from the $29.5 million net income or $0.83 per diluted common share recorded in the third quarter of 2025 and a significant improvement from $26.9 million during the same period last year.

Overview of Financial Results

Tyler Wilcox, President and Chief Executive Officer of Peoples Bancorp Inc., commented, “We are pleased with the results achieved in 2025, highlighted by positive operating leverage, excluding the impact of accretion income, and solid loan growth. We remain focused on this momentum and our commitment to delivering strong returns for our shareholders and community in 2026.”

Statement of Operations Summary

Key highlights from the statement of operations include:

  • Net interest income for Q4 2025 decreased by $0.3 million compared to Q3 2025 due to lower loan yields.
  • Net interest margin fell to 4.12% from 4.16% in the linked quarter.
  • A provision for credit losses stood at $8.1 million, up from $7.3 million in Q3 2025.
  • Total non-interest income, excluding net gains and losses, rose by 5%, amounting to an increase of $1.4 million.

Asset Quality and Provisions

Despite the challenges, key asset quality metrics showed improvement in Q4 2025:

  • Total loans and leases increased by $28.2 million, or 2% annualized, compared to September 30, 2025.
  • Criticized loans decreased by $31.9 million, while classified loans fell by $11.4 million.
  • Net charge-offs rose to $7.4 million, representing 0.44% of average total loans.

Balance Sheet Highlights

On December 31, 2025, the financial position of Peoples Bancorp was as follows:

  • Total deposit balances decreased by $22.0 million compared to September 30, 2025.
  • Total loan balances were 89% of total deposit balances.

Net Interest Income Overview

Peoples reported net interest income of $91.0 million for the fourth quarter of 2025, a slight reduction from the prior quarter. Year-over-year, net interest income increased by $4.5 million, or 5%.

Future Outlook

The company is expected to maintain its focus on growth and stability moving forward into 2026, emphasizing the strategic initiatives that will help enhance shareholder value. The upcoming year’s success will largely depend on the continued management of credit losses and strengthening of core revenue streams.

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