PEBO · Peoples Bancorp Inc.

Peoples Bancorp Inc. reported first quarter 2026 results with diluted EPS of $0.81, surpassing consensus estimates of $0.80 despite one-time expenses of $0.04 per share from stock compensation and health contributions. Net interest income declined modestly to $90.4 million from $91.0 million in the prior quarter due to lower accretion income ($1.3M vs. $1.8M) and two fewer days, but net interest margin expanded 4 basis points, supported by a 12 basis point drop in core deposit costs and reduced brokered CDs. Fee-based income rose $0.4 million, aided by $1.2 million in annual insurance commissions, offsetting seasonal declines elsewhere. Non-interest expense increased $0.3 million to $71.6 million, driven by typical Q1 employee costs; adjusted, it was lower than Q4. Provision for credit losses rose to $9.7 million, lifting ACL to 1.16% of loans amid macroeconomic deterioration, though portfolio quality improved with non-performing loans down $3 million, criticized loans down $12 million (3.31% of loans), and 98.9% of loans current. Balance sheet showed $13 million loan growth (C&I +$111M offset by CRE/construction paydowns), $192 million core deposit growth (NIB +$41M), and loan-to-deposit at 88.5%. Tangible book value per share reached $22.95, up 3% annualized, with all regulatory ratios improving. Management announced a merger with Citizens National ($700M assets, 12 KY branches) for $77 million, accretive to 2027 EPS by $0.20 with <1-year TBV earn-back and 40% cost savings. Full-year 2026 outlook (ex-merger/non-core): NIM 4-4.2% (incl. one 25bps cut), quarterly fees $28-30M, expenses $73-75M, loans low-single-digit growth, lower net charge-offs H2.