PEBO · Peoples Bancorp Inc.

Peoples Bancorp Inc. delivered solid Q1 2026 results with net income of $29.0 million and diluted EPS of $0.81, down slightly from the prior quarter's $31.8 million and $0.89 due to lower accretion income, fewer days in the quarter, and higher provision for credit losses at $9.7 million driven by net charge-offs and CECL model updates reflecting deteriorated macro-economic conditions. However, net interest margin expanded 4 basis points to 4.16%, benefiting from a 12 basis point decline in core deposit costs after strategically reducing higher-cost brokered CDs by $154 million. Non-interest income excluding gains/losses rose 1% linked-quarter on seasonal insurance commissions, while expenses edged up 0.4% due to one-time employee costs, yielding an efficiency ratio of 58.6%. Asset quality improved with nonperforming loans down $3.5 million to 0.58% of total loans, criticized loans declining $12.3 million, and net charge-offs at 0.40% annualized, aided by lower leasing losses. Balance sheet showed modest loan growth of $13 million (1% annualized) led by commercial and industrial, deposits up $38 million with core growth of $192 million, and all capital ratios strengthening to CET1 12.45% and tangible equity to assets 8.91%. Management raised the quarterly dividend 2% to $0.42 per share, signaling confidence. Concurrently, Peoples announced a $76.6 million acquisition of Citizens National Corporation, adding 12 Kentucky branches, $342 million loans, and $586 million deposits; terms offer 2.10 Peoples shares plus $8 cash per Citizens share, expected accretive to earnings with <1-year earnback and >20% IRR, closing H2 2026 pending approvals. 2026 guidance includes NIM 4.00-4.20%, quarterly non-interest income $28-30M, expenses $73-75M, and low-single-digit loan growth.