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]

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, the company achieved loan growth of 6% compared to 2024, and fee-based income improved by 6% [5] - The efficiency ratio was stable at 57.8% for Q4 2025, with a reported efficiency ratio of 58.7% for the full year, compared to 58% in 2024 [16][18] Business Line Data and Key Metrics Changes - Fee-based income improved by 5% in Q4 compared to the linked quarter, driven by higher lease income and deposit account service charges [14] - The net interest margin declined by four basis points in Q4, impacted by lower loan yields [12] - The company experienced a near-record quarter of commercial loan production, with commercial real estate loans comprising 35% of total loans [11] Market Data and Key Metrics Changes - The allowance for credit losses increased to 1.12% of total loans at year-end, up from 1% at the prior year-end [6] - Non-performing loans grew nearly $4 million compared to the linked quarter, primarily due to an increase in non-accrual loans [9] - The company’s criticized loan balances as a percentage of total loans improved to 3.5% compared to 3.99% at September 30 [9] 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] - There is a strategic emphasis on solidifying strategies around the small-ticket leasing business, with expectations of reduced charge-off levels in the second half of 2026 [23] - The company plans to manage its balance sheet size and does not intend to cross the $10 billion asset threshold organically [24] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about achieving positive operating leverage in 2026, despite potential rate cuts [25] - The company anticipates loan growth between 3% and 5% compared to 2025, depending on the timing of paydowns [25] - Management expects 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’s book value per share grew to $33.78, while tangible book value per share improved to $22.77 [18] - The company continues to invest in talent and has made key hires to support growth and expertise in its existing groups [21] - The company received recognition from American Banker's Best Banks to Work For for five consecutive years [20] 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 [30] Question: Tax rate expectations - The tax rate for 2025 was around 21%, with expectations of approximately 22% for 2026 [32] Question: Loan demand expectations - Management expressed encouragement regarding loan growth, particularly in the commercial sector, despite potential payoffs in a declining rate environment [33][34] Question: M&A environment and criteria - The company is focused on strategic patience and evaluating opportunities primarily within its existing footprint, with a size preference for larger deals in the $3-$5 billion range [44][45] 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][50] Question: Capital actions and share buybacks - Management confirmed ongoing share buyback programs and a continuation of the dividend rate [74] Question: Competitive factors in lending - Management noted that there is high demand for high-quality borrowers, and they do not see significant competitive pressure impacting their metrics [104]