Peoples Bancorp (PEBO) investor relations material

Executive summary

• Adjusted diluted EPS of $0.96 exceeded consensus estimates, with reported diluted EPS of $0.78, impacted by an $8.2M loss from securities sales and $410K in acquisition expenses.

• Net income for Q2 2026 was $28.0 million, with adjusted results excluding non-core losses and acquisition costs.

• Progress continues on the pending Citizens merger, with closing anticipated early Q4 2026 and integration planning on track.

• Fee-based income increased, and provision for credit losses declined 51% compared to the previous quarter.

• Tangible equity to tangible assets improved to 9.25%, and book value per share rose to $34.41.

Financial highlights

• Net interest income for Q2 2026 was $92.7 million, up $2.3 million sequentially; net interest margin expanded to 4.23%.

• Provision for credit losses declined 51% to $4.7M; net charge-off rate improved to 31 bps.

• Non-interest income (excluding gains/losses) increased $0.3 million sequentially.

• Non-interest expense grew 2% sequentially, mainly due to higher professional fees and acquisition-related costs; efficiency ratio improved to 58.3%.

• Tangible book value per share rose to $23.56 from $22.95 in Q1.

Outlook and guidance

• Expects positive operating leverage for 2026, with net interest margin guidance of 4.10%–4.30% in a stable rate environment.

• Quarterly fee-based income expected between $28M-$30M; non-interest expense $73M-$75M per quarter.

• Loan growth anticipated at the low end of 3%-5% range due to continued paydowns.

• Slight reduction in net charge-offs expected for 2026; focus remains on asset threshold management.

• Integration of Citizens Bank acquisition is a key priority.