Peoples Bancorp (PEBO) Q4 2025 earnings summary

Executive summary

• Diluted EPS for Q4 2025 was $0.89, up 7% from the prior quarter, with net income at $31.8 million, exceeding consensus estimates despite $0.04 in one-time losses from OREO sale and sub-debt redemption.

• Full-year 2025 net income totaled $106.8 million, with diluted EPS of $2.99, and results met expectations with positive operating leverage and 6% loan growth year-over-year.

• Fee-based income grew 5–6% year-over-year, and net interest income remained stable.

• Investments in technology and talent continued, with recognition for workplace culture and key leadership transitions announced.

Financial highlights

• Net interest income for Q4 2025 was $91.0 million, flat sequentially but up $4.5 million year-over-year; net interest margin declined 4 bps in Q4 and 7 bps for the year.

• Book value per share grew 2% and tangible book value per share rose 3% in Q4; tangible book value per share was $22.77 at year-end 2025.

• Allowance for credit losses increased to 1.12% of loans at year-end, up from 1% prior year.

• Annualized net charge-off rate was 44 bps in Q4, with small-ticket lease charge-offs contributing 31 bps.

• Efficiency ratio was 57.8% in Q4 and 58.7% for the year, slightly higher due to lower accretion income and higher expenses.

Outlook and guidance

• 2026 guidance: net interest margin expected between 4.0% and 4.2%, assuming one 25 bps Fed rate cut, with each cut reducing NIM by 3–4 bps.

• Fee-based income projected at $28M–$30M per quarter; non-interest expense at $72M–$74M for Q2–Q4 2026.

• Loan growth expected at 3%–5% for 2026; positive operating leverage and lower net charge-offs anticipated.

• Provision for credit losses expected to decline in 2026 as charge-offs moderate.