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Peoples Bancorp Inc. Reports Third Quarter 2025 Results

In a recent announcement, Peoples Bancorp Inc. (NASDAQ: PEBO), headquartered in Marietta, Ohio, revealed its financial results for the third quarter ended September 30, 2025. The company reported a net income of $29.5 million, translating to earnings per diluted common share of $0.83. This reflects a commendable performance compared to the $21.2 million net income, or $0.59 per diluted share, recorded in the preceding quarter. Although this marks a slight decrease from the $31.7 million, or $0.89 per share, reported during the same period last year, it highlights a significant momentum in its operations.

Tyler Wilcox, President and CEO of Peoples, expressed optimism, stating, “We continued to experience high loan growth and had improvements in several key financial metrics during the third quarter. We look to maintain our momentum going into the fourth quarter and to drive shareholder value in future periods.”

Financial Highlights

Income Statement Overview

• - Net Interest Income: Increased by $3.8 million, or 4%, when compared to the linked quarter, reaching $91.3 million. This upsurge is attributed to higher yields from investment securities and increased loan balances.
• - Net Interest Margin: Slightly rose to 4.16% from 4.15% in the preceding quarter, benefiting from enhanced yields on investment securities.
• - Provision for Credit Losses: Stood at $7.3 million, a sharp decline from $16.6 million in the prior quarter. This decrease is largely attributed to net charge-offs, loan growth, and a slight deterioration in economic forecasts used in the current expected credit loss (CECL) model.

Non-Interest Income and Expenses

Total non-interest income fell by 1% to $23.8 million due to a decrease in lease income and net losses from asset sales, amounting to $2.8 million in losses for the quarter. However, total non-interest expenses saw a decrease of $0.5 million, primarily due to lower professional service costs.

Asset Quality

Peoples Bancorp noted improvements in key asset quality metrics with 99.0% of its loan portfolio classified as current as of September 30, 2025. Nonperforming assets decreased due to enhancements in the specialty finance portfolio, while net charge-offs declined to $6.8 million, representing 0.41% of total loans.

Loan Growth

The total loan and lease balances increased by $127.1 million, or 8% annualized, in comparison to June 30, 2025. This growth was driven mainly by a rise in commercial real estate and industrial loans, offset slightly by a decrease in construction loans.

Balance Sheet Insights

As of September 30, 2025, total deposits were down by $5.0 million, while customer deposits saw an uptick of $19.5 million, attributed to higher money market deposit accounts and interest-bearing demand accounts. Notably, the company has maintained its total loan balances at 88% of total deposits.

Looking Ahead

With a strong backdrop of financial results and asset growth, Peoples Bancorp Inc. is eager to sustain its upward trajectory. In response to anticipated economic challenges, the company emphasizes maintaining rigorous credit quality controls and adapting strategies to uphold its community banking ethos. As they prepare for the forthcoming quarter, Peoples is focused on driving shareholder value while continuing to serve its customers diligently.

To discuss these earnings further, the company plans to conduct a conference call on October 21, 2025, facilitating dialogue among analysts, investors, and media members.

Peoples Bancorp has long been recognized for its steadfast commitment to financial stability and community impact, with assets totaling $9.6 billion as of Q3 2025, alongside numerous branches across multiple states. Its mission emphasizes becoming the Best Community Bank in America through comprehensive banking solutions and innovative financial services.