Whether it's through stocks, bonds, ETFs, or other types of securities, all investors love seeing their portfolios score big returns. However, when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.Cash flow can come from bond interest, interest from other types of investments, and, of course, dividends. A dividend is that coveted distribution of a company's earnings paid out to shareholders, and investors often view it by its dividend yiel ...

Financial Performance - Net income for the fourth quarter of 2025 was $31.8 million, with earnings per diluted common share of $0.89, compared to $29.5 million and $0.83 in the third quarter of 2025[1]. - Net income for Q4 2025 reached $31,754,000, an increase from $29,476,000 in Q3 2025 and $26,930,000 in Q4 2024, representing a year-over-year growth of 17.5%[65]. - Earnings per common share (diluted) for Q4 2025 was $0.89, compared to $0.83 in Q3 2025 and $0.76 in Q4 2024, reflecting a year-over-year increase of 17.1%[65]. - Annualized net income for the year ended December 31, 2025, was $125,981,000, slightly higher than $117,205,000 for the previous year[93]. - Annualized net income adjusted for non-core items for the three months ended December 31, 2025, was $132,201, up from $126,528 in the previous quarter, reflecting a growth of 5.3%[89]. Income and Expenses - Net interest income for the fourth quarter of 2025 was $91.0 million, a decrease of $0.3 million from the linked quarter, with a net interest margin of 4.12%[5]. - Total non-interest income, excluding net gains and losses, increased by $1.4 million, or 5%, for the fourth quarter of 2025 compared to the linked quarter[17]. - Total non-interest expense increased by $1.4 million for the fourth quarter of 2025, primarily due to higher operating lease expenses and increased salaries[20]. - The efficiency ratio for the fourth quarter of 2025 was 57.8%, compared to 57.1% for the linked quarter[23]. - Total non-interest income for Q4 2025 was $26,272,000, up from $23,827,000 in Q3 2025 and $25,089,000 in Q4 2024, reflecting a growth of 5.9% quarter-over-quarter[63]. Assets and Liabilities - Total assets as of December 31, 2025, were $9,649,630,000, an increase from $9,254,247,000 as of December 31, 2024, showing a growth of 4.3%[67]. - Total stockholders' equity increased to $1,206,602,000 as of December 31, 2025, compared to $1,111,590,000 in the previous year, representing an increase of 8.5%[67]. - Total deposits decreased by $22.0 million compared to September 30, 2025, but increased by $20.0 million compared to December 31, 2024[39][40]. - Total liabilities increased to $8,434,269 thousand, while stockholders' equity rose to $1,196,505 thousand[77]. Loans and Credit Quality - Total loan and lease balances increased by $28.2 million, or 2% annualized, from September 30, 2025[3]. - The allowance for credit losses increased to $75,676,000 as of December 31, 2025, up from $63,348,000 in the previous year, indicating a rise of 19.5%[67]. - Nonperforming assets decreased by $2.2 million, or 5%, compared to September 30, 2025, and by $6.3 million, or 13%, compared to December 31, 2024[34]. - The provision for credit losses was $8.1 million for the fourth quarter of 2025, up from $7.3 million in the third quarter of 2025[10]. - Net charge-offs for the quarter were $7,439 thousand, compared to $6,829 thousand in the prior quarter, reflecting an increase of 8.93%[72]. Capital and Ratios - Common equity tier 1 capital ratio improved to 12.29%, up from 12.11% in the previous quarter[70]. - Return on average stockholders' equity increased to 10.53% for the three months ended December 31, 2025, compared to 10.06% in the previous quarter and 9.56% a year ago[59]. - Return on average tangible equity was 16.57% for the three months ended December 31, 2025, up from 16.17% in the previous quarter[93]. - The dividend payout ratio decreased to 46.10% for the three months ended December 31, 2025, from 49.72% in the previous quarter and 52.79% a year ago[59]. Investment Securities - As of December 31, 2025, the available-for-sale investment securities balance increased by $7.5 million compared to September 30, 2025, but decreased by $99.2 million compared to December 31, 2024[26]. - The yield on investment securities was 3.67% for the three months ended December 31, 2025, compared to 3.79% in the previous quarter[77]. - The effective durations of available-for-sale and held-to-maturity investment securities were approximately 5.75 and 7.75 years, respectively, as of December 31, 2025[28]. Future Outlook - The company anticipates potential risks from changes in interest rate policies and economic conditions that may impact future performance[55].

Core Viewpoint - Peoples Bancorp Inc. (PEBO) is a significant player in the financial services sector, with a strong focus on banking, investment, and insurance services, and has demonstrated confidence through insider transactions and dividend declarations [1][2][3]. Group 1: Company Overview - Peoples Bancorp Inc. is a financial services holding company based in Marietta, Ohio, established in 1902, with total assets of $9.6 billion as of December 31, 2025 [1]. - The company offers a diverse range of services, including banking, trust and investment, insurance, and specialty financing [1]. Group 2: Insider Transactions - On January 23, 2026, BEAM S CRAIG, a director at PEBO, purchased 157 shares of common stock at $31.65 each, increasing his total ownership to approximately 26,665 shares, indicating confidence in the company's future performance [2][5]. Group 3: Dividend Information - PEBO declared a quarterly cash dividend of $0.41 per share, totaling $14.6 million, which represents 46.1% of the company's earnings for Q4 2025, offering an annualized yield of 5.25% based on a closing stock price of $31.21 on January 16, 2025 [3]. Group 4: Stock Performance - The current stock price of PEBO is $31.28, reflecting a 4.03% decrease, with fluctuations between $31.22 and $32.39 on the day [4]. - Over the past year, the stock has ranged from a low of $26.21 to a high of $33.83, with a market capitalization of approximately $1.12 billion [4]. - The stock is actively traded on the NASDAQ exchange, with a current volume of 186,540 shares, indicating healthy interest and liquidity [4].

Company Overview - Peoples Bancorp (PEBO) is based in Marietta and operates in the Finance sector, with a year-to-date share price change of 5.13% [3] - The company currently pays a dividend of $0.41 per share, resulting in a dividend yield of 5.19%, which is significantly higher than the Banks - Midwest industry's yield of 2.81% and the S&P 500's yield of 1.39% [3] Dividend Performance - The annualized dividend of Peoples Bancorp is $1.64, reflecting a 0.6% increase from the previous year [4] - Over the past five years, the company has increased its dividend five times, achieving an average annual increase of 3.63% [4] - The current payout ratio stands at 54%, indicating that the company distributes 54% of its trailing 12-month earnings per share as dividends [4] Earnings Growth Expectations - For the fiscal year, PEBO anticipates solid earnings growth, with the Zacks Consensus Estimate for 2026 projected at $3.39 per share, representing a year-over-year growth rate of 8.65% [5] Investment Appeal - Established firms with secure profits are typically viewed as the best dividend options, and PEBO is positioned as an attractive dividend play [6] - The stock has a strong Zacks Rank of 2 (Buy), indicating a favorable investment opportunity [6]

Core Viewpoint - Peoples Bancorp Inc. (NASDAQ:PEBO) demonstrates strong financial performance with earnings and revenue exceeding estimates, reflecting investor confidence and a solid market position [2][5]. Financial Performance - The company reported earnings per share (EPS) of $0.95, surpassing the estimated $0.88 [2][5]. - Revenue reached approximately $119.57 million, exceeding estimates and indicating a year-over-year increase of 5.1% [2][5]. Financial Metrics - PEBO has a price-to-earnings (P/E) ratio of approximately 10.38, indicating favorable market valuation of its earnings [3][5]. - The price-to-sales ratio is about 1.90, and the enterprise value to sales ratio is around 2.61, reflecting strong market valuation relative to revenue and sales [3]. - The company maintains a debt-to-equity ratio of approximately 0.44, indicating a moderate level of debt relative to equity [4][5]. - A current ratio of around 2.06 suggests a strong ability to cover short-term liabilities with short-term assets [4].

Core Insights - Peoples Bancorp Inc. reported fourth-quarter earnings of $31.8 million, or $0.89 per diluted share, slightly exceeding analyst expectations of $0.88, while revenue was $117.32 million, marginally below forecasts of $117.98 million [1] - Earnings increased from $0.83 in the previous quarter and $0.76 in the same period last year [1] Loan and Revenue Performance - Period-end loan balances rose by $28.2 million, or 2% on an annualized basis, driven by growth in commercial and industrial lending and construction loans [2] - Year-over-year, total loans increased by $398.9 million, or 6% [2] - Net interest income slightly declined to $91.0 million from $91.3 million in the previous quarter, with net interest margin narrowing to 4.12% from 4.16% [2] - The provision for credit losses increased to $8.1 million from $7.3 million in the third quarter [2] Asset Quality and Deposits - Asset quality improved, with criticized loans declining by $31.9 million, or 12%, sequentially [3] - Nonperforming assets as a percentage of total loans and other real estate owned stood at 0.63% at year-end, down from 0.66% at September 30, 2025 [3] - Total deposits declined by $22.0 million quarter over quarter, with the loan-to-deposit ratio rising slightly to 89% from 88% [3]

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Group 1 - The article discusses trends in regional banks as a "pulse check" on local economies in the United States, indicating potential growing weaknesses or strengths in these economies [1] - The analysis is conducted by Quad 7 Capital, a team of analysts with nearly 12 years of experience in identifying investment opportunities [1] - The focus of Quad 7 Capital includes short- and medium-term investments, income generation, special situations, and momentum trades, aiming to educate investors on proficient trading [1] Group 2 - The article emphasizes the importance of high-quality research and clear entry and exit targets for investors [1] - It highlights the benefits of BAD BEAT Investing, including learning market dynamics, executing well-researched trade ideas, and access to trading tools [1] - The company has a proven track record of success in the investment community [1]

Financial Data and Key Metrics Changes - The company reported diluted earnings per share (EPS) of $0.89 for the fourth quarter, a 7% increase compared to the linked quarter [4] - For the full year of 2025, net interest income improved by 2% compared to 2024, while the net interest margin declined by seven basis points [13][14] - The efficiency ratio for the fourth quarter was stable at 57.8%, with a full-year efficiency ratio of 58.7% compared to 58% for 2024 [16][18] Business Line Data and Key Metrics Changes - Loan growth for the full year was 6% compared to 2024, with a fourth-quarter annualized loan growth of 2% [10] - Fee-based income improved by 5% in the fourth quarter and 6% for the full year compared to 2024, driven by higher lease income and trust and investment income [15][16] - The provision for credit losses totaled $8.1 million for the fourth quarter, driven by net charge-offs and loan growth [6][7] Market Data and Key Metrics Changes - Non-performing loans grew nearly $4 million compared to the linked quarter, while criticized loans declined by $32 million [9] - At year-end, 98.6% of the loan portfolio was considered current, down from 99% at September 30 [10] - The loan-to-deposit ratio remained around 89%, consistent with the linked quarter-end and prior year-end [17] Company Strategy and Development Direction - The company is focusing on technological capabilities and has implemented state-of-the-art software programs to enhance operational efficiency [20][21] - There is a strategic emphasis on maintaining a neutral interest rate risk position and managing deposit costs [14][17] - The company plans to achieve positive operating leverage for 2026 and anticipates loan growth between 3% and 5% compared to 2025 [24][25] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about loan growth, particularly in the commercial sector, despite potential payoffs in a declining rate environment [33][34] - The company expects to cross the $10 billion asset threshold in 2027 but has no plans to do so organically [23][24] - Management anticipates a slight reduction in net charge-offs for 2026 compared to 2025, positively impacting the provision for credit losses [26] Other Important Information - The company plans to continue investing in data provision and warehousing, new talent, and specialty areas within existing businesses [84] - The Chief Commercial Banking Officer is set to retire, with a successor already appointed [22] Q&A Session Summary Question: Margin guidance and accretion benefit - Management indicated that the accretion benefit for the full year is expected to be closer to five basis points [31] Question: Tax rate expectations - The tax rate for 2025 was around 21%, with expectations for 2026 to be in the 22% range [32] Question: Loan demand outlook - Management expressed encouragement regarding loan growth, particularly in commercial lending, despite some expected payoffs [33] Question: M&A environment and criteria - The company is focused on strategic patience in evaluating M&A opportunities, primarily within its existing footprint [43][44] Question: North Star Leasing performance - Management acknowledged a slight increase in charge-offs but remains optimistic about the long-term outlook for the leasing business [48] Question: Capital actions and share buybacks - Management confirmed ongoing share buyback programs and a continuation of the dividend rate [74] Question: Fee income growth outlook - Management discussed the challenges in the insurance market but remains committed to growth through acquisitions [81] Question: Deposit growth expectations - Management does not expect deposits to keep pace with loan growth, anticipating an increase in the loan-to-deposit ratio [95]

Financial Data and Key Metrics Changes - The company reported diluted earnings per share (EPS) of $0.89 for Q4 2025, a 7% increase compared to the linked quarter [4] - For the full year 2025, net interest income improved by 2% compared to 2024, while net interest margin declined by 7 basis points [13][14] - The efficiency ratio for Q4 was stable at 57.8%, with a full-year efficiency ratio of 58.7% compared to 58% in 2024 [16][18] - The allowance for credit losses increased to 1.12% of total loans from 1% at the prior year-end [7] Business Line Data and Key Metrics Changes - Loan growth for 2025 was 6% compared to 2024, with a 2% annualized loan growth in Q4 compared to the linked quarter [10] - Fee-based income improved by 5% in Q4 and by 6% for the full year compared to 2024, driven by higher lease income and trust and investment income [15] - Non-interest expense grew by 3% for the full year 2025 compared to 2024, primarily due to higher salaries and employee benefits [16] Market Data and Key Metrics Changes - The company experienced a decline in deposit balances of $22 million compared to the linked quarter, primarily due to reductions in governmental deposits [17] - Total deposits, excluding brokered CDs, increased nearly $160 million compared to the prior year, with non-interest-bearing deposits contributing $38 million of the growth [17] Company Strategy and Development Direction - The company is focusing on technological capabilities and has implemented state-of-the-art software to improve operational efficiency [20] - There is a strategic emphasis on maintaining a loan-to-deposit ratio around 89% and managing the size of the balance sheet to avoid crossing the $10 billion asset threshold organically [24] - The company plans to continue investing in talent and technology to enhance growth and operational efficiency [21][84] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about loan growth in 2026, expecting a range of 3% to 5% compared to 2025, influenced by timing of paydowns [25] - The company anticipates a slight reduction in net charge-offs for 2026, which is expected to positively impact provisions for credit losses [26] - Management highlighted the importance of strategic patience in evaluating M&A opportunities, focusing on existing markets and potential acquisitions [43][44] Other Important Information - The company plans to continue its share buyback program and maintain its dividend rate [74] - The planned retirement of the Chief Commercial Banking Officer was announced, with a successor already appointed [22] Q&A Session Summary Question: Margin guidance and accretion benefit - Management indicated that the accretion benefit for the full year is expected to be around five basis points [31] Question: Tax rate expectations - The tax rate for 2025 was approximately 21%, with expectations to rise to around 22% for 2026 [32] Question: Loan demand and production expectations - Management expressed optimism about loan growth, particularly in commercial lending, despite potential payoffs in a declining rate environment [33][34] Question: M&A environment and criteria - The company is open to M&A opportunities, particularly within its existing footprint, with a preference for larger deals in the $3-$5 billion range [43][44] Question: Northstar Leasing performance - Management acknowledged a slight increase in charge-offs but remains optimistic about the long-term outlook for the Northstar Leasing business [48] Question: Capital actions and share buybacks - No new capital actions beyond the subordinated debt paydown were planned, with a focus on organic growth [74] Question: Competitive factors in lending - Management noted that while there is high demand for quality borrowers, they are not seeing excessive competitive pressure impacting their lending metrics [105]