---
title: "Peoples reports adjusted EPS $0.96, NII up 3% and NIM +7 bps in Q2 2026"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/293962054.md"
description: "Peoples Bancorp reported Q2 2026 adjusted diluted EPS of $0.96, beating consensus, with net interest income up 3% and NIM expanding 7 bps. Credit loss provisions fell 51%. The company sold $135M in securities ahead of its pending Citizens merger, targeting a Q4 close. Management maintained full-year NIM guidance of 4.1%-4.3% and highlighted improved efficiency ratios and loan growth driven by C&I and premium finance sectors."
datetime: "2026-07-27T17:43:01.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/293962054.md)
  - [en](https://longbridge.com/en/news/293962054.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/293962054.md)
---

# Peoples reports adjusted EPS $0.96, NII up 3% and NIM +7 bps in Q2 2026

Peoples reported diluted earnings per share of $0.78 for Q2 2026 and an adjusted diluted EPS of $0.96 after excluding one-time items, beating consensus of $0.85. The quarter saw net interest income rise 3% with net interest margin expanding 7 basis points, while provision for credit losses fell 51% versus the prior quarter. Management noted strategic securities sales tied to the pending Citizens merger and maintained guidance for positive operating leverage and a full-year NIM range of 4.1%–4.3% (excluding merger and non-core items).

**Financial Highlights**

-   Diluted EPS: $0.78 for Q2 2026; Adjusted diluted EPS of $0.96 after excluding one-time items (includes $8.2M investment loss and $0.41M acquisition-related expenses, plus a $0.48M tax benefit).
-   Net interest income increased 3% quarter-over-quarter; net interest margin expanded by 7 basis points in Q2.
-   Provision for credit losses: $4.7 million in Q2, down 51% from Q1 2026.
-   Efficiency ratio improved to 58.3% in Q2 from 58.6% in Q1.
-   Balance sheet and capital: loans grew $51 million (3% annualized); tangible equity to tangible assets rose to 9.25%; book value per share increased to $34.41 and tangible book to $23.56.

**Business Highlights**

-   Strategic portfolio actions: sold approximately $135 million of available-for-sale securities in early May to manage total assets under the $10 billion threshold ahead of the Citizens merger.
-   Loan portfolio composition and activity: growth driven by C&I (+$43M), premium finance (+$37M), construction (+$25M) and HELOCs (+$13M); mid-ticket leasing increased while small-ticket leasing declined due to paydowns and reduced exposure.
-   Credit performance: annualized quarterly net charge-off rate improved to 31 bps from 40 bps; small-ticket leasing charge-offs declined to $3.4M from $3.8M; non-performing loans at 0.6% of total loans.
-   Deposit dynamics: core deposits declined $155M (seasonal governmental and retail CD runoff), with increases in money market balances (+$37M) and non-interest-bearing deposits (+$7M); deposit costs improved by 6 basis points versus Q1.
-   Merger integration and outlook: ongoing integration planning for the Citizens deal with anticipated close in early Q4 2026 (pending approvals) and core conversion targeted for early Q2 2027; management remains opportunistic on additional acquisitions.

Original SEC Filing: PEOPLES BANCORP INC \[ PEBO \] - 8-K - Jul. 27, 2026

**Disclaimer**

This is an AI-powered summary. It may contain inaccuracies. Consider verifying important information with the source. Please note this summary is solely based on documents filed with the SEC.

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