#United States #Marietta #Peoples Bancorp #Q2 2026 #Citizens Merger

Peoples Bancorp Inc. Reports Strong Earnings for Second Quarter of 2026

Peoples Bancorp Inc. (NASDAQ: PEBO), a diversified financial services organization based in Marietta, Ohio, has announced its financial results for the second quarter of 2026, revealing net income of $28.0 million, or earnings per diluted share of $0.78. This represents a slight decrease from the previous quarter's net income of $29.0 million and earnings per share of $0.81. However, it reflects significant growth compared to the $21.2 million net income and $0.59 earnings per diluted share reported in the same quarter last year.

Financial Highlights

During the second quarter, Peoples Bancorp showed its resilience amidst economic fluctuations and market changes, which are highlighted in several key financial metrics:

• - Net Interest Income and Margin: The net interest income increased by $2.3 million from the previous quarter, reaching $92.7 million. The net interest margin also improved to 4.23% from 4.16%, showcasing a solid reduction in deposit costs.
• - Credit and Charge-Offs: The provision for credit losses significantly decreased by $5.0 million, dropping to $4.7 million. Additionally, net charge-offs decreased from $6.6 million in the previous quarter to $5.2 million.
• - Loan Growth: Total loan and lease balances rose by $51.4 million, or an annualized 3%, signifying active demand in the lending market, especially within commercial and industrial sectors.

Strategic Initiatives and Mergers

Additionally, Peoples Bancorp is strategically positioning itself for future growth through its planned acquisition of Citizens National Corporation. Announced on April 21, 2026, this merger is valued at approximately $76.6 million and is anticipated to enhance the bank's market presence in Kentucky. As of June 30, 2026, Peoples recognized $0.4 million in expenses related to this acquisition, further indicating proactive integration efforts.

President and CEO Tyler Wilcox expressed satisfaction with the second quarter results, noting, "We are pleased with the results for the second quarter of 2026, with improvements in many performance metrics including our expanding net interest margin. We remain committed to delivering strong returns and enhancing shareholder value."

Non-Interest Income and Expenses

Total non-interest income, which excludes net gains and losses, showed minor growth of 1% compared to the previous quarter, culminating in an increase of $0.3 million primarily driven by higher electronic banking income and lease income.
On the expense front, total non-interest expenses rose by $1.1 million, attributed mainly to higher professional fees and data processing costs, which are reflective of the bank's ongoing operational investments and growth strategies.

Stock Performance and Investor Engagement

Peoples Bancorp's tangible book value shares rose to $23.56, a notable increase from $22.95 in the previous quarter. This growth in shareholder equity continues to build confidence in investors, with the bank firmly positioned as a reliable institution within the competitive financial landscape.
Peoples will also conduct a conference call on July 21, 2026, at 11:00 a.m. ET to discuss these results further, inviting analysts and stakeholders to participate.

Conclusion

Overall, the quarter demonstrates Peoples Bancorp Inc.'s strong performance and commitment to strategic growth amidst an evolving financial climate. The impending merger with Citizens National Corporation promises to provide additional avenues for expanding its reach and service offerings, reinforcing the bank's vision of becoming the premier community bank in the United States.

In conclusion, Peoples Bancorp Inc.'s financial results for the second quarter of 2026 signal not just resilience but also potential as it navigates through industry challenges and pursues growth opportunities in partnership with Citizens National Corporation.