Peoples Bancorp (PEBO) investor relations material

Executive summary

• Q3 net income was $32.6M and diluted EPS was $0.91; adjusted diluted EPS was $1.04, excluding securities losses and acquisition expenses, and exceeded $0.93 consensus.

• Net interest margin reached 4.31%, up 8 bps QoQ; net interest income rose $1.1M and fee-based income increased 5%.

• Provision for credit losses declined 24% QoQ to $3.6M, while annualized net charge-offs increased to 35 bps from 31 bps.

• Citizens was targeted to close in Q4 2026; the Capital acquisition was expected to close in late Q1 or early Q2 2027.

Financial highlights

• Q3 net interest income was $93.8M, up $1.1M QoQ; nine-month net interest income increased $12.8M YoY.

• Non-interest income excluding gains and losses rose 5% QoQ to $30.5M; reported non-interest income was $25.6M, up 26% as securities losses narrowed.

• Non-interest expense was $74.5M, up $1.8M QoQ, including $1.5M in acquisition-related costs; excluding those costs, expense was flat QoQ.

• Q3 provision for credit losses was $3.6M, versus $4.7M in Q2 and $7.3M in Q3 2025.

• Nine-month net income was $89.6M and diluted EPS was $2.49, versus $75.0M and $2.10 in 9M 2025.

Outlook and guidance

• 2026 outlook, excluding non-core expenses and including Citizens: positive operating leverage and full-year NIM of 4.20%-4.30%.

• 2026 loan growth is expected at 6%-8% YoY; net charge-offs are expected to decline YoY, subject to economic forecasts.

• Q4 2026 non-interest income, excluding gains and losses, is expected at $28M-$30M; non-interest expense at $78M-$80M, including $11M-$13M of Citizens acquisition expenses.

• 2027 outlook, excluding non-core expenses and Capital: positive operating leverage, full-year NIM of 4.30%-4.50%, quarterly fee income of $31M-$33M, and loan growth of 3%-5%.

• 2027 NIM guidance assumes three 25-bp rate increases; quarterly expenses are expected at $80M-$82M in Q2-Q4, with Q1 higher seasonally.