Peoples Bancorp Inc. reported net income of $28.0 million for the second quarter of 2026, representing earnings per diluted common share of $0.78. This compares to net income of $29.0 million ($0.81 diluted EPS) for the linked quarter and $21.2 million ($0.59 diluted EPS) for the second quarter of 2025. Net interest margin expanded to 4.23% from 4.16% in the linked quarter, driven by disciplined deposit costs and higher interest income. The company provided full-year 2026 guidance, anticipating net interest margin between 4.1% and 4.3% and fee-based income between $28 million and $30 million per quarter.

Key Earnings Metrics

The table below summarizes key per-share data and selected ratios for the reported periods.

Net Interest Income and Margin

Net interest income was $92.7 million for the second quarter of 2026, an increase of $2.3 million compared to the linked quarter. Net interest margin expanded to 4.23% from 4.16% in the linked quarter and 4.15% in the second quarter of 2025. Compared to the second quarter of 2025, net interest income increased $5.2 million, or 6%, with net interest margin rising 8 basis points, primarily driven by lower deposit and borrowing costs. For the first six months of 2026, net interest income increased $10.3 million compared to the same period of 2025, while net interest margin increased 6 basis points to 4.20%.

Consolidated Income Statement Highlights

The table below presents key income statement figures across reporting periods (dollars in thousands).

Quarterly Highlights and Guidance

Several key operational metrics improved during the second quarter of 2026. Net interest margin increased to 4.23% from 4.16% in the linked quarter, driven by a reduction in deposit costs. Provision for credit losses decreased $5.0 million compared to the linked quarter to $4.7 million. Net charge-offs decreased from $6.6 million in the linked quarter to $5.2 million. Period-end total loans and leases increased $51.4 million, or 3% annualized, compared to the linked quarter, driven by growth in commercial and industrial loans. Tangible book value per common share increased to $23.56 from $22.95 in the linked quarter.

Management provided guidance for the full year of 2026, excluding the impact of non-core expenses and the planned merger. The company anticipates net interest margin will be between 4.1% and 4.3% for the full year. Quarterly fee-based income is expected to range between $28 million and $30 million. Quarterly total noninterest expense is projected to be between $73 million and $75 million for the remaining quarters of 2026. Loan growth is expected to be towards the low end of the 3% to 5% range due to continued paydowns.

Citizens Acquisition

On April 21, 2026, Peoples announced a definitive agreement to acquire Citizens National Corporation in a cash and stock transaction valued at approximately $76.6 million. The company anticipates the merger to close by early Q4 2026 and expects core system conversion by early Q2 2027. As of June 30, 2026, Peoples had recognized $0.4 million in acquisition-related expenses associated with this pending transaction. A notable non-recurring item in the quarter was a net loss on investment securities of $8.2 million, resulting from the sale of $135.2 million of available-for-sale securities as part of a portfolio restructure as Peoples manages its balance sheet under $10 billion in assets ahead of the pending merger.

Asset Quality

Delinquency trends improved, with loans considered current comprising 99.1% of the loan portfolio at June 30, 2026, compared to 98.9% at March 31, 2026. Total nonperforming assets increased $1.4 million, or 4%, compared to March 31, 2026, but decreased $5.6 million, or 12%, compared to June 30, 2025. Nonperforming assets as a percent of total loans and OREO was 0.60% at June 30, 2026. The allowance for credit losses as a percent of total loans was 1.14% at June 30, 2026, compared to 1.16% at March 31, 2026.

Balance Sheet and Capital

Total assets stood at $9.54 billion at June 30, 2026, compared to $9.65 billion at December 31, 2025. Total loans and leases were $6.82 billion at June 30, 2026, an increase of $220.0 million, or 3%, compared to June 30, 2025. Total deposits were $7.46 billion at June 30, 2026. Total stockholders' equity increased $20.5 million, or 2%, compared to March 31, 2026, to $1.24 billion, driven by net income of $28.0 million, partially offset by dividends paid of $15.1 million. The common equity tier 1 capital ratio was 12.66% at June 30, 2026, compared to 12.45% at March 31, 2026.

Peoples Bancorp Inc. declared a quarterly cash dividend of $0.42 per common share, payable on August 17, 2026, to shareholders of record on August 3, 2026. The Board of Directors approved the dividend on July 20, 2026, resulting in a total payout of approximately $15.1 million. This amount represents 54.0% of the company's reported second quarter 2026 earnings.

Based on the closing stock price of $39.39 on July 17, 2026, the quarterly dividend produces an annualized yield of 4.27%. The company operates as a diversified financial services holding company, providing banking, trust, investment, insurance, and specialty financing solutions through its subsidiaries.

Financial and Operational Details

Peoples Bancorp Inc. reported total assets of $9.5 billion as of June 30, 2026. The company operates 144 locations, including 127 full-service bank branches across Ohio, West Virginia, Kentucky, Virginia, Washington D.C., and Maryland.

The company offers services through Peoples Bank, which includes divisions such as Peoples Investment Services and North Star Leasing, as well as Peoples Insurance Agency, LLC, and Vantage Financial, LLC. Peoples Bancorp Inc. is a member of the Russell 3000 index of United States publicly-traded companies.