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Peoples Bancorp Inc. Reports Strong Q4 and Annual Earnings Growth in 2025

Peoples Bancorp Inc. (NASDAQ: PEBO) announced its financial performance for the fourth quarter ended December 31, 2025, showing a notable increase in net income and a strong commitment to delivering shareholder value. The company reported a net income of $31.8 million for Q4 of 2025, equivalent to an earnings per diluted share of $0.89. This represents a significant improvement compared to the net income of $29.5 million in the previous quarter and an increase from $26.9 million in the same quarter last year.

Tyler Wilcox, President and Chief Executive Officer, expressed satisfaction with the performance in 2025, emphasizing positive operational leverage and robust loan growth. He stated, "We are pleased with the results achieved in 2025, highlighted by positive operating leverage and solid loan growth. We remain focused on this momentum and commitment to delivering strong returns for our shareholders and community in 2026."

Financial Highlights

• - Net Interest Income: The net interest income for Q4 2025 slightly decreased by $0.3 million compared to the previous quarter, totaling $91 million. The net interest margin also saw a minor decrease to 4.12% from 4.16% in the linked quarter. This reduction was largely influenced by lower loan yields despite a decline in funding costs.
• - Provision for Credit Losses: Peoples recorded a provision for credit losses of $8.1 million in Q4 2025, which is an increase from $7.3 million in Q3, mainly due to net charge-offs and loan growth, partly offset by reductions in reserves for individually analyzed loans.
• - Non-Interest Income: Notably, total non-interest income, excluding net gains and losses, rose by $1.4 million, or 5%, compared to the previous quarter, driven by a surge in lease income and deposit account service charges.

Balance Sheet Analysis

At the end of the quarter, the total loan and lease balances increased by $28.2 million, or 2% annualized, due to growth in commercial and industrial loans as well as construction loans, despite some declines in premium finance loans and residential real estate loans.

• - Total Deposits: Deposit balances decreased by $22 million compared to the prior quarter, influenced by reduced governmental deposit accounts and retail certificates of deposit. On a year-over-year basis, total deposits saw an increase of $20 million.

Operational Efficiency

The efficiency ratio for Q4 2025 stood at 57.8%, reflecting an increase from 57.1% in the linked quarter, largely attributed to increased non-interest expenses related to higher salaries and operational lease costs. Despite these pressures, Peoples is committed to maintaining controlled expense management while ensuring continued growth.

Looking Ahead

Peoples Bancorp Inc. is gearing up for a conference call scheduled for January 20, 2026, to further discuss the fourth quarter results and share insights about future strategies. The company emphasizes its vision of being recognized as the best community bank in America, maintaining a strong commitment to community impact and financial stability.

Overall, the results from 2025 indicate a solid performance by Peoples Bancorp Inc., reinforcing its growth trajectory and commitment to its stakeholders. The combination of robust earnings, improved asset quality metrics, and effective operational management positions the company favorably in the competitive financial landscape.

Peoples has shown its resilience and ability to navigate financial challenges while continuing to deliver value to its shareholders, making it an institution to watch in 2026 and beyond.