Peoples is a member of the Russell 3000 index of U.S. publicly-traded companies. Peoples offers services through Peoples Bank (which includes the divisions of Peoples Investment Services, Peoples Premium Finance and North Star Leasing), Peoples Insurance Agency, LLC, and Vantage Financial, LLC. SOURCE Peoples Bancorp Inc. WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM? 440k+Newsrooms &Influencers 9k+Digital MediaOutlets 270k+JournalistsOpted In GET STARTED Also from this source Accessibility Statemen ...

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 OR For the transition period from ____ to ____ Commission File Number: 000-16772 PEOPLES BANCORP INC. (Exact name of Registrant as specified in its charter) Ohio 31-0987416 (State or other juri ...

Group 1 - Peoples Bancorp Inc. reported its Q2 2025 results, with the stock closing down 3.68% on the trading day [1] - The quarterly results were not negative overall, but there was a significant miss on earnings per share (EPS) [1]

Core Viewpoint - Peoples Bancorp Inc. is conducting a conference call to discuss its operational results for the second quarter and the first half of 2025, highlighting its financial performance and future outlook [2]. Group 1: Company Overview - The conference call features key company participants including Tyler Wilcox (President, CEO & Director) and Kathryn Bailey (Executive VP, CFO & Treasurer) [1]. - The call is facilitated by an operator and is being recorded for future reference [2]. Group 2: Financial Performance - The earnings release and conference call presentation for the second quarter of 2025 were made available on the company's investor relations website [5]. Group 3: Forward-Looking Statements - Management emphasizes that the commentary will include forward-looking statements regarding future financial performance, based on current expectations and reasonable assumptions [3][4]. - There are inherent risks and uncertainties associated with these forward-looking statements, and actual results may differ materially [4].

Core Insights - Peoples Bancorp Inc. reported diluted earnings per share of $0.59 for Q2 2025, with annualized loan growth of 11% and net interest margin expanding by three basis points to 4.15% [24][4]. - The company is facing challenges in its small ticket leasing portfolio, which has seen elevated charge-off levels and a decline in size from $220 million in June 2024 to $160 million in Q2 2025 [43][44]. - Management expects steady net interest margin performance, mid-single-digit loan growth, and a focus on fee-based income expansion while maintaining a neutral interest rate risk profile [12][46]. Financial Performance - Net interest income increased by over $2 million, or 3%, in Q2 2025, while fee-based income declined by 1% primarily due to the absence of performance-based insurance commissions [5][33]. - Noninterest expense decreased by 1% to $70.4 million in Q2 2025, driven by lower salaries and employee benefit costs [5][36]. - The efficiency ratio improved to 59.3% from 60.7% in Q2 2025, reflecting higher net interest income and reduced noninterest expenses [5][37]. Credit Quality - Provision for credit losses totaled $16.6 million in Q2 2025, up $6.5 million from the linked quarter, with net charge-offs of $7 million [6][26]. - The annualized net charge-off rate improved to 43 basis points from 52 basis points in the linked quarter, driven by lower small ticket leasing charge-offs [6][27]. - Allowance for credit losses increased to 1.13% of total loans, aligning closely with peers [7][25]. Loan and Deposit Trends - Annualized loan growth was 11%, with balanced growth across all loan categories, including commercial and industrial loans, residential real estate loans, and construction loans [4][30]. - Deposit balances declined by 1% ($98 million) in Q2 2025, impacted by seasonality and decreases in governmental and money market accounts [8][41]. - The loan to deposit ratio increased to 86% from 83%, reflecting robust loan growth amid seasonal deposit declines [14][38]. Guidance and Outlook - Management expects a full-year 2025 net interest margin of 4.00%-4.20% and loan growth of 4%-6% compared to 2024 [11][46]. - Fee-based income is forecasted to grow in the mid-single-digit percentages versus 2024, led by lease income and other noninterest categories [15][46]. - The company anticipates that small ticket leasing net charge-offs will plateau over the next two quarters, with a focus on managing delinquency trends [47][45].

Financial Data and Key Metrics Changes - The company reported diluted earnings per share of 59 cents for Q2 2025, with an annualized loan growth of 11% [6][8] - Net interest income increased by over $2 million, while the net interest margin expanded by three basis points to 4.15% [14][19] - The overall allowance for credit losses grew by $9.4 million to 1.13% of total loans, with a provision for credit losses totaling $16.6 million, an increase of $6.5 million from the previous quarter [8][9][12] Business Line Data and Key Metrics Changes - Loan growth was balanced across categories, including commercial and industrial loans ($64 million), residential real estate loans ($30 million), and small ticket leasing loans ($14 million) [13] - Fee-based income was relatively stable, with a slight decline of 1% compared to the linked quarter, primarily due to performance-based insurance commissions recognized in Q1 [16][17] - Non-interest expenses declined by 1% to $70.4 million, driven by lower salaries and employee benefits costs [18] Market Data and Key Metrics Changes - The company experienced increased loan demand, reflected in the pipelines and loan growth during the quarter [12] - The investment portfolio grew by approximately $140 million, driven by investments in higher-yielding bonds [20] - Deposit balances declined by 1% or $98 million, with reductions in money market accounts and interest-bearing checking accounts [20][21] Company Strategy and Development Direction - The company aims to achieve positive operating leverage for 2025 compared to 2024, with expectations of loan growth between 4% to 6% [25][26] - The focus remains on managing the balance sheet and interest rate risk profile while generating loan growth with high underwriting standards [27][28] - The company is actively evaluating M&A opportunities, particularly in overlapping markets and adjacent states [110] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism regarding the health of the core commercial portfolio, with expectations for charge-offs to plateau in the small ticket leasing segment [36][43] - The company has not observed significant impacts from tariffs on loan growth or credit metrics, but continues to monitor the portfolio closely [12][68] - Future guidance includes expectations for fee-based income growth in the mid-single-digit percentages compared to 2024 [26] Other Important Information - The tangible equity to tangible assets ratio remained stable at 8.3% [22] - The efficiency ratio improved to 59.3% compared to 60.7% for the linked quarter [19] - The company was recognized as one of America's Greatest Workplaces 2025 by Newsweek, highlighting its commitment to employees [28] Q&A Session Summary Question: Insights on charge-offs and credit outlook - Management indicated that charge-offs in the small ticket leasing segment are expected to plateau, correlating with the decline of high balance accounts [35][36] Question: Reserves perspective and CECL impact - Specific reserves added were primarily related to small ticket leasing, with management believing they are appropriately reserved at this point [39][43] Question: Loan growth guidance and drivers - Management maintained a loan growth guidance of mid-single digits for 2025, citing strong production and pipelines [50][51] Question: Deposit growth outlook - Seasonal growth in governmental deposits is expected in Q3, with overall deposit pricing remaining stable [52][54] Question: M&A opportunities and capital management - The company remains opportunistic regarding stock repurchases and is actively exploring M&A opportunities in existing and adjacent markets [108][110]

Financial Data and Key Metrics Changes - The company reported diluted earnings per share of 59 cents for Q2 2025, with an annualized loan growth of 11% [6][7] - Net interest income increased by over $2 million, while the net interest margin expanded by three basis points to 4.15% [14][20] - The allowance for credit losses grew by $9.4 million to 1.13% of total loans, with a provision for credit losses totaling $16.6 million, an increase of $6.5 million from the previous quarter [8][12] Business Line Data and Key Metrics Changes - Fee-based income was relatively stable, with a slight decline of 1% compared to the linked quarter, primarily due to performance-based insurance commissions recognized in Q1 [16][18] - The small ticket leasing business experienced elevated charge-off levels, with net charge-offs decreasing from $5.4 million in the previous quarter to $4.8 million [10][24] - Loan growth was balanced across categories, including commercial and industrial loans, residential real estate loans, and construction loans [13] Market Data and Key Metrics Changes - The company observed increased loan demand, reflected in the pipelines and loan growth during the quarter [12] - Non-performing assets increased slightly to 49 basis points of total assets, primarily due to higher balances in loans past due [11] - The commercial real estate loans comprised 34% of total loans, with 46% of total loans being fixed rate [13][21] Company Strategy and Development Direction - The company aims to achieve positive operating leverage for 2025 compared to 2024, with expectations of loan growth between 4% to 6% [26][27] - The management is focused on maintaining high underwriting standards to protect credit quality while offering competitive deposit rates [28][29] - The company is actively managing its balance sheet and interest rate risk profile, with a commitment to community engagement and employee satisfaction [29] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism regarding credit quality and loan growth, despite potential economic uncertainties [12][28] - The company has not observed significant impacts from tariffs on loan growth or credit metrics but continues to monitor the portfolio closely [12][71] - Future expectations include a plateau in small ticket leasing net charge-offs and a stable outlook for deposit growth [26][58] Other Important Information - The tangible equity to tangible assets ratio remained stable at 8.3%, with book value per share growing by 1% [22][23] - The investment portfolio grew by approximately $140 million, driven by investments in higher-yielding bonds [21] Q&A Session Summary Question: Insights on charge-offs and credit quality - Management indicated that charge-offs in small ticket leasing are correlated with high balance accounts and expect them to plateau in the upcoming quarters [36][45] Question: Loan growth guidance and drivers - The company maintained a loan growth guidance of mid-single digits for 2025, citing strong production and robust demand across various business lines [54] Question: Deposit growth outlook and competition - Management expects seasonal growth in governmental deposits and stable trends in other deposit categories, with ongoing efforts to manage deposit costs [56][58] Question: Capital levels and stock repurchase plans - The company remains opportunistic regarding stock repurchases, with a focus on maintaining strong capital levels for potential M&A opportunities [107][109]

Financial Performance Highlights - Net income reached $21.2 million, translating to $0.59 of diluted earnings per share[11] - Annualized loan growth was 11%[11] - Book value per share grew 1%, while tangible book value per share increased 2%, to $32.33 and $21.18, respectively[11] - Net interest income increased over $2 million, and net interest margin expanded 3 basis points[11] - Excluding accretion income, net interest margin expanded 8 basis points[11] Loan Portfolio and Asset Quality - Total loan balances grew 11% annualized compared to March 31, 2025[15] - The allowance for credit losses grew to 1.13% of total loans[11, 25] - Annualized net charge-off rate declined to 43 basis points[11, 27] - Small-ticket lease balances comprised 2% of total loan balances at June 30, 2025[18, 22] North Star Leasing - North Star Leasing balances comprised only 2% of Peoples' total loan portfolio at June 30, 2025[18] - The North Star portfolio origination yield (before accounting adjustments) is around 20%[18] Net Interest Income and Margin - Net interest income grew over $2 million compared to the linked quarter, and net interest margin expanded 3 basis points[11, 37] - Accretion income declined $0.9 million[37] Deposits - Second quarter 2025 deposits declined $81 million, or 1%, compared to the linked quarter, excluding brokered CDs[51]

Core Insights - Peoples Bancorp reported revenue of $114.46 million for the quarter ended June 2025, marking a year-over-year increase of 4.4% and a surprise of +1.38% over the Zacks Consensus Estimate of $112.9 million [1] - The EPS for the same period was $0.60, down from $0.84 a year ago, resulting in an EPS surprise of -23.08% compared to the consensus estimate of $0.78 [1] Financial Performance Metrics - Total earning assets averaged $8.38 billion, slightly below the average estimate of $8.41 billion [4] - Net Interest Margin was reported at 4.2%, exceeding the average estimate of 4.1% [4] - Efficiency ratio stood at 59.3%, better than the estimated 61.5% [4] - Net charge-offs as a percentage of average total loans (annualized) were 0.4%, matching the average estimate [4] - Mortgage banking income was $0.22 million, significantly lower than the average estimate of $0.62 million [4] - Total Non-interest income reached $26.88 million, surpassing the estimated $25.87 million [4] - Electronic banking income was $6.27 million, slightly above the average estimate of $6.1 million [4] - Bank owned life insurance income was $1.11 million, exceeding the average estimate of $0.95 million [4] - Insurance income was reported at $4.55 million, above the average estimate of $4.38 million [4] - Deposit account service charges totaled $4.06 million, slightly above the average estimate of $4.05 million [4] - Net Interest Income was $87.58 million, higher than the average estimate of $87.11 million [4] - Net interest income on a fully tax-equivalent basis was $87.86 million, also exceeding the average estimate of $87.11 million [4] Stock Performance - Shares of Peoples Bancorp have returned +5.6% over the past month, compared to the Zacks S&P 500 composite's +5.9% change [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

Core Viewpoint - Peoples Bancorp reported quarterly earnings of $0.6 per share, missing the Zacks Consensus Estimate of $0.78 per share, and down from $0.84 per share a year ago, indicating an earnings surprise of -23.08% [1] Financial Performance - The company posted revenues of $114.46 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 1.38%, and up from $109.69 million year-over-year [2] - Over the last four quarters, the company has surpassed consensus revenue estimates three times [2] Stock Performance - Peoples Bancorp shares have lost about 0.4% since the beginning of the year, while the S&P 500 has gained 7.2% [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating expected underperformance in the near future [6] Earnings Outlook - The current consensus EPS estimate for the coming quarter is $0.83 on revenues of $115.1 million, and for the current fiscal year, it is $3.15 on revenues of $456.47 million [7] - The estimate revisions trend for Peoples Bancorp was unfavorable ahead of the earnings release [6] Industry Context - The Banks - Midwest industry is currently in the top 31% of over 250 Zacks industries, suggesting that stocks in the top 50% outperform those in the bottom 50% by more than 2 to 1 [8]