Peoples Bancorp (PEBO) Q3 2025 earnings summary

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 securities sales.

• Annualized loan growth reached 8% for the quarter, with book value per share increasing 2% and tangible equity to tangible assets rising to 8.53%.

• Efficiency ratio improved to 57.1% from 59.3% sequentially, reflecting lower non-interest expenses.

• Net interest income rose 4% sequentially to $91.3M, with net interest margin at 4.16%.

• Fee-based income remained stable sequentially and grew 7% year-over-year for the first nine months of 2025.

Financial highlights

• Net interest income for the first nine months of 2025 was $264.2M, up from $262.2M in 2024; net interest margin for the period was 4.15%, down from 4.24%.

• Investment securities yield improved to 3.79% from 3.52% sequentially.

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

• Efficiency ratio for Q3 2025 was 57.1%, up from 55.1% in Q3 2024.

• Effective tax rate for Q3 2025 was 22.4%.

Outlook and guidance

• Full-year 2025 net interest margin expected between 4% and 4.2%, assuming two 25bp Fed rate cuts in Q4.

• Loan growth for 2025 guided at 4%-6% year-over-year; for 2026, expected at 3%-5%.

• Fee-based income growth projected in mid-single digits for 2025; quarterly fee-based income for 2026 expected between $27M-$29M.

• Non-interest expense for Q4 2025 expected at $69M-$71M; for 2026, quarterly expense guided at $71M-$73M (Q2-Q4).

• Management expects continued margin pressure and will monitor loan growth and credit quality amid economic uncertainty.