Peoples Bancorp (PEBO) investor relations material

Executive summary

• Net income for Q3 2025 was $29.5 million ($0.83 diluted EPS), up from Q2 but down from Q3 2024, with EPS negatively impacted by a $2.7M loss on $75M in investment securities sales.

• Annualized loan growth reached 8% compared to the previous quarter, with book value per share up 2% and tangible book value per share up 4%.

• Efficiency ratio improved to 57.1% from 59.3% sequentially, though higher than 55.1% in Q3 2024.

• Asset quality improved with lower nonperforming loans and net charge-off rates, though criticized and classified loans increased due to isolated downgrades.

• Management expects continued momentum into Q4, focusing on shareholder value and monitoring credit and margin trends.

Financial highlights

• Net interest income rose 4% sequentially to $91.3M, with net interest margin at 4.16%, up from Q2 but down from Q3 2024.

• Allowance for credit losses at 1.11% of total loans; provision for credit losses was $7.3M, down from Q2 but up year-over-year.

• Non-interest income (excluding gains/losses) grew 7% year-to-date but declined 1% sequentially.

• Non-interest expense declined 1% sequentially but increased 4–6% year-over-year, mainly due to higher salaries and technology costs.

• Tangible equity to tangible assets improved by 27 bps to 8.53%.

Outlook and guidance

• Net interest margin for Q4 2025 expected between 4.00% and 4.20%, with each 25bp Fed cut reducing NIM by 3–4bp.

• Loan growth for 2025 projected at 4–6%, and 2026 at 3–5%, with provision for credit losses expected to remain similar to Q3 barring economic changes.

• Non-interest expense expected at $69–71M for Q4 2025 and 2025, with quarterly increases in 2026.

• Fee-based income growth projected in mid-single digits for 2025; quarterly fee-based income for 2026 expected at $7–9M.

• Management expects continued pressure on net interest margin due to lower accretion income and competitive deposit pricing.