EPS: As of FY2026 Q2, the actual value is USD 0.78, missing the estimate of USD 0.8457.

Financial and Operational Metrics for Peoples Bancorp Inc.

Three Months Ended June 30, 2026 (Q2 2026)

Net Income and Returns

Net income was $27,953 thousand. Net income adjusted for non-core items was $35,092 thousand. Annualized net income was $112,119 thousand. Annualized net income adjusted for non-core items was $140,754 thousand. Reported diluted EPS was $0.78, while adjusted diluted EPS, excluding one-time items, was $0.96, surpassing analyst estimates of $0.85. One-time items included an -$8.2 million loss from the strategic sale of investment securities, reducing diluted EPS by -$0.18. Acquisition-related expenses of $410,000 reduced diluted EPS by -$0.01. An energy tax credit lowered income tax expense by $480,000, positively impacting diluted EPS by $0.01. Return on average assets was 1.17%. Return on average assets adjusted for non-core items was 1.47%. Return on average stockholders’ equity was 9.13%. Return on average tangible equity was 14.03%.

Efficiency Ratio Calculations

Total non-interest expense was $72,759 thousand. Adjusted total non-interest expense was $71,062 thousand. Total non-interest income was $20,378 thousand. Total non-interest income, excluding net gains and losses, was $29,005 thousand. Net interest income was $92,728 thousand. Net interest income on a fully tax-equivalent basis was $92,949 thousand. Adjusted revenue was $121,954 thousand. The efficiency ratio was 58.27%. The reported efficiency ratio improved to 58.3% for the second quarter, compared to 58.6% for the linked quarter, driven by higher revenue.

Tangible Equity and Assets

Total stockholders’ equity was $1,236,551 thousand. Goodwill and other intangible assets were $389,963 thousand. Tangible equity was $846,588 thousand. Total assets were $9,540,161 thousand. Tangible assets were $9,150,198 thousand. Common shares outstanding were 35,939,954. Tangible book value per common share was $23.56. The tangible equity to tangible assets ratio was 9.25%. Book value per share increased to $34.41 from $33.85. Tangible book value per share improved to $23.56 from $22.95.

Pre-Provision Net Revenue

Income before income taxes was $35,638 thousand. Provision for credit losses was $4,709 thousand. Net loss on investment securities was $8,181 thousand. Net loss on other assets was $453 thousand. Pre-provision net revenue was $48,974 thousand.

Net Interest Income and Margin

Net interest income increased 3% and grew $2.3 million compared to the linked quarter. Net interest margin (NIM) expanded 7 basis points from the linked quarter. Accretion income contributed 5 basis points to NIM in Q2 2026. Deposit costs improved by six basis points compared to the linked quarter, with the spot cost of deposits around 4.20% at the end of June.

Fee-Based Income

Fee-based income grew over $340,000 compared to the linked quarter, driven by improvements in most fee-based income lines, offsetting a decline in insurance income.

Operating Costs

Non-interest expenses were up 2% compared to the linked quarter, including $410,000 in acquisition-related expenses.

Loan Growth and Balances

Loans grew $51 million, or 3% annualized. Commercial and industrial loans contributed $43 million of growth. Premium finance loans increased $37 million, construction loans $25 million, and home equity lines of credit $13 million. Mid-ticket leasing added over $15 million in balances, partially offset by declines in the small-ticket leasing portfolio. Other commercial real estate loan balances declined $58 million due to anticipated first-half payoffs. The fixed rate loan book is approximately 46-48% of the portfolio, with an average life of three to five years. The CRE to risk-based capital ratio is around 178%.

Deposit Balances

Non-interest-bearing deposits grew $7 million, or 2% annualized. Core deposit balances, excluding brokered CDs, declined $155 million compared to March 31. Governmental deposits saw seasonal decreases of $87 million, and interest-bearing demand accounts reduced by $17 million. Demand deposits as a percent of total deposits grew to 36% at June 30, from 35% at the linked quarter end. The non-interest-bearing deposits to total deposits ratio was flat at 21% for both June 30 and March 31.

Asset Quality

Provision for credit losses totaled $4.7 million for the second quarter, a decline of $5 million, or 51%, compared to the first quarter, driven by reduced net charge-offs and stabilized macroeconomic conditions. The allowance for credit losses declined to 1.14% of total loans from 1.16% at March 31. The annualized quarterly net charge-off rate improved to 31 basis points, compared to 40 basis points for the linked quarter. Indirect consumer loan net charge-offs increased $751,000. Small-ticket lease charge-offs were $3.4 million, compared to $3.8 million for the first quarter. Non-performing loans increased slightly to 0.6% of total loans at quarter end. Criticized loans grew $50 million, comprising 4.01% of total loans at quarter end, while classified loans declined $1 million. Delinquency levels improved, with 99.1% of the loan portfolio considered current at June 30, compared to 98.9% at the linked quarter end.

Capital and Balance Sheet Structure

The tangible equity to tangible assets ratio increased 34 basis points to 9.25%. All regulatory capital ratios improved compared to the linked quarter end. The loan-to-deposit ratio increased to 91.5% compared to 88.5% at March 31. The investment portfolio as a percent of total assets declined to 19.1% at June 30, from 20.3% at the linked quarter end, following the sale of approximately $135 million of available-for-sale investment securities, resulting in a -$8.2 million loss.

Six Months Ended June 30, 2026

Net interest income improved $10.3 million, or 6%, and NIM expanded 6 basis points compared to the first six months of 2025. Fee-based income grew $3 million, primarily due to higher lease income and trust and investment income. Non-interest expenses were up 2%, driven by higher operating lease expense, salaries and employee benefits, and data processing and software expense. Acquisition-related expenses for the first half of 2026 totaled $426,000. The reported efficiency ratio was 58.4%, compared to 60% for the prior year. Net income was $56,959 thousand. Pre-provision net revenue was $96,423 thousand.

Quarterly Trends (YoY Comparisons)

Tangible equity increased from $755,565 thousand on June 30, 2025, to $846,588 thousand on June 30, 2026. Tangible assets increased from $9,142,823 thousand on June 30, 2025, to $9,150,198 thousand on June 30, 2026. Tangible book value per common share increased from $21.18 on June 30, 2025, to $23.56 on June 30, 2026. The tangible equity to tangible assets ratio increased from 8.26% on June 30, 2025, to 9.25% on June 30, 2026.

Outlook and Guidance for Full Year 2026

Peoples Bancorp Inc. anticipates achieving positive operating leverage for 2026 compared to 2025, excluding non-core expenses and merger impacts. The net interest margin is expected to be between 4.1% and 4.3% for the full year 2026, with a 25 basis point increase in Federal Reserve rates projected to improve NIM by 6 to 8 basis points annually. Quarterly fee-based income is expected to range between $28 million and $30 million, and quarterly total non-interest expense is projected to be between $73 million and $75 million for the two remaining quarters of 2026. Loan growth is expected at the low end of the 3% to 5% guided range due to continued paydowns, and a slight reduction in net charge-offs for 2026 compared to 2025 is anticipated, which is expected to positively impact the provision for credit losses, assuming no changes in economic forecasts. The company continues to progress with the pending Citizens merger, anticipating a close date in early Q4 2026, pending regulatory and shareholder approvals, with the core system conversion targeted for early Q2 2027.