Fourth Quarter 2025 Earnings Conference Call January 20, 2026 Safe Harbor Statement Statements in this presentation which are not historical facts are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. These forward-looking statements may include discussions of the strategic plans and objectives or anticipated future performance and ...

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SOURCE Peoples Bancorp Inc. Prior to joining Peoples Bank, Mr. Majka served as Head of Upper Middle Market Banking, for Huntington National Bank ("Huntington") in Cleveland, Ohio, since January 2022. In that role, he led commercial business development and market expansion efforts in the upper middle market sector across eight Midwest states. Prior to that, Mr. Majka served as Head of Loan Syndications for Huntington from 2017 to 2021, and as Head of Loan Syndications for FirstMerit Bank (prior to its merge ...

Core Viewpoint - Peoples Bancorp (PEBO) is expected to report quarterly earnings of $0.88 per share, reflecting a 7.3% increase year-over-year, with revenues projected at $118.15 million, a 5.8% increase compared to the previous year [1]. Financial Metrics - Analysts estimate 'Average Balance - Total earning assets' to be $8.73 billion, up from $8.21 billion a year ago [4]. - The 'Net Interest Margin' is projected at 4.1%, slightly down from 4.2% reported in the same quarter last year [4]. - The 'Efficiency ratio' is expected to remain stable at 59.6%, unchanged from the previous year [4]. Income Projections - 'Total Non-interest income' is anticipated to reach $27.03 million, an increase from $25.09 million in the same quarter last year [5]. - 'Electronic banking income' is forecasted at $6.53 million, up from $6.27 million reported in the same quarter last year [5]. - 'Insurance income' is expected to be $4.55 million, slightly up from $4.52 million a year ago [6]. - 'Deposit account service charges' are projected to be $4.33 million, down from $4.50 million in the previous year [6]. - 'Net Interest Income' is estimated at $91.23 million, compared to $86.54 million last year [6]. Additional Insights - 'Net interest income on a fully tax-equivalent basis' is likely to reach $91.42 million, up from $86.82 million a year ago [7]. - 'Trust and investment income' is predicted to be $5.47 million, compared to $5.03 million in the same quarter last year [7]. - Shares of Peoples Bancorp have shown a return of -3.8% over the past month, contrasting with the Zacks S&P 500 composite's +2.1% change, with a Zacks Rank 2 (Buy) indicating expected outperformance in the near future [7].

Wall Street expects a year-over-year increase in earnings on higher revenues when Peoples Bancorp (PEBO) reports results for the quarter ended December 2025. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.The earnings report, which is expected to be released on January 20, might help the stock move higher if these key numbers are better than ex ...

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Core Viewpoint - Independent Bank is positioned as a more favorable investment compared to Peoples Bancorp based on various financial metrics and analyst recommendations [11] Profitability - Independent Bank has a net margin of 21.25%, return on equity of 14.76%, and return on assets of 1.28% - Peoples Bancorp has a net margin of 16.57%, return on equity of 9.45%, and return on assets of 1.15% [2] Institutional and Insider Ownership - 79.4% of Independent Bank shares are owned by institutional investors, while 60.7% of Peoples Bancorp shares are owned by institutional investors - Company insiders own 5.7% of Independent Bank shares compared to 3.4% for Peoples Bancorp [3] Valuation and Earnings - Independent Bank's gross revenue is $222.04 million with a price/sales ratio of 2.93, net income of $66.79 million, earnings per share (EPS) of $3.26, and a price/earnings (P/E) ratio of 9.65 - Peoples Bancorp has gross revenue of $447.86 million with a price/sales ratio of 2.34, net income of $117.21 million, EPS of $2.86, and a P/E ratio of 10.28 - Independent Bank is trading at a lower P/E ratio, indicating it is more affordable [5][6] Analyst Recommendations - Independent Bank has a consensus target price of $36.00, suggesting a potential upside of 14.43%, while Peoples Bancorp has a target price of $33.13 with a potential upside of 12.63% - Analysts rate Independent Bank more favorably due to its higher potential upside [8] Dividends - Independent Bank pays an annual dividend of $1.04 per share with a dividend yield of 3.3%, distributing 31.9% of its earnings as dividends - Peoples Bancorp pays an annual dividend of $1.64 per share with a dividend yield of 5.6%, distributing 57.3% of its earnings as dividends - Both companies have a history of increasing dividends, with Independent Bank increasing for 11 consecutive years and Peoples Bancorp for 10 consecutive years [9] Volatility & Risk - Independent Bank has a beta of 0.86, indicating it is 14% less volatile than the S&P 500 - Peoples Bancorp has a beta of 0.7, indicating it is 30% less volatile than the S&P 500 [10]

Financial Performance - Peoples reported net income of $29.5 million for Q3 2025, with earnings per diluted common share of $0.83, compared to $21.2 million and $0.59 in Q2 2025, and $31.7 million and $0.89 in Q3 2024[168]. - For the nine months ended September 30, 2025, net income was $75.0 million, or $2.10 per diluted common share, down from $90.3 million, or $2.55 per diluted common share for the same period in 2024[168]. - Annualized net income for Q3 2025 was $116,943, compared to $85,081 in Q2 2025, reflecting an increase in annualized net income adjusted for non-core items to $126,528[244]. - The annualized net income adjusted for non-core items for the first nine months of 2025 was $104,216, compared to $121,902 for the same period in 2024[244]. Earnings and Income Analysis - Non-core items negatively impacted earnings per diluted common share by $0.07 in Q3 2025, $0.01 in Q2 2025, and $0.01 in Q3 2024[168]. - Net interest income for Q3 2025 was $91.3 million, an increase of $3.8 million, or 4%, from the linked quarter, and a $2.4 million, or 3%, increase from Q3 2024[169]. - The efficiency ratio for Q3 2025 was 57.1%, an improvement from 59.3% in the linked quarter[181]. - Pre-provision net revenue (PPNR) for Q3 2025 was $48,340, an increase from $44,375 in Q2 2025, driven by higher net interest income from loans and investment securities[239]. Asset and Liability Management - Total assets as of September 30, 2025, were $9.62 billion, an increase from $9.54 billion at June 30, 2025, and $9.25 billion at December 31, 2024[183]. - Total liabilities were $8.44 billion at September 30, 2025, up from $8.39 billion at June 30, 2025, and $8.14 billion at December 31, 2024[184]. - Total stockholders' equity at September 30, 2025, increased by $29.4 million compared to June 30, 2025, primarily due to net income of $29.5 million[185]. - The total fair value of available-for-sale securities at September 30, 2025, was $976,906,000, down from $1,051,497,000 in the previous quarter[253]. Credit Quality and Losses - Provision for credit losses in Q3 2025 was $7.3 million, down from $16.6 million in the linked quarter and up from $6.7 million in Q3 2024[171]. - Net charge-offs for Q3 2025 were $6.8 million, or 0.41% of average total loans annualized, compared to $7.0 million, or 0.43%, in the linked quarter[173]. - The allowance for credit losses increased to $74,485 thousand in Q3 2025 from $65,186 thousand in Q2 2025[191]. - Total net charge-offs for the third quarter of 2025 were $6.829 million, or 0.41% of average total loans on an annualized basis, a decrease from $6.964 million, or 0.43%, in the linked quarter[267]. Regulatory and Compliance - The company is subject to regulation by the Ohio Division of Financial Institutions, the Federal Reserve Bank of Cleveland, and the FDIC[161]. - Peoples may face increased regulatory scrutiny and potential impacts from recent failures of other financial institutions[157]. - The capital conservation buffer was 5.79% at September 30, 2025, indicating a strong capital position above regulatory requirements[276]. Operational Highlights - As of September 30, 2025, Peoples operated 145 locations, including 127 full-service bank branches across multiple states[161]. - Peoples' business activities are currently limited to one reporting unit and reportable operating segment, which is community banking[161]. - The company continues to focus on controlling expenses while recognizing necessary costs for business growth[242]. Interest Rate and Economic Sensitivity - The company anticipates potential risks from changes in interest rate policies and inflationary pressures affecting borrowers' liquidity and repayment ability[156]. - The estimated increase in net interest income for a 300 basis point rise in interest rates is $36,689 thousand, which is a 9.7% increase[283]. - The bear steepener scenario produced an increase in net interest income of 0.8% and an increase in the economic value of equity of 5.6% as of September 30, 2025[286]. Non-Interest Income - Total non-interest income, excluding net gains and losses, for Q3 2025 decreased by $0.3 million compared to the linked quarter but increased by $1.2 million compared to Q3 2024[176]. - E-banking income for Q3 2025 was $6.538 million, slightly up from $6.359 million in Q3 2024[207]. - Trust and investment income for Q3 2025 was $5.414 million, up from $4.882 million in Q3 2024, reflecting increased brokerage income[210]. Loan Portfolio and Growth - Total loans for Q3 2025 amounted to $6,634,323 thousand, with a net interest margin of 6.71%, consistent with Q2 2025[191]. - The total loan and lease balances at September 30, 2025 increased by $456.9 million, or 7%, compared to September 30, 2024, with significant contributions from commercial and industrial loans and other commercial real estate loans[257]. - Loans secured by commercial real estate, including commercial construction loans, comprised the largest portion of the loan portfolio at September 30, 2025[259]. Employee and Operational Expenses - Salaries and employee benefit costs for the first nine months of 2025 increased to $117.4 million from $112.5 million in 2024, driven by annual merit increases[219]. - Total non-interest expense for the first nine months of 2025 increased by $7.7 million, or 4%, compared to the same period in 2024[180]. - Data processing and software expenses for the first nine months of 2025 increased to $21.7 million from $18.6 million in 2024 due to costs associated with recent technology projects[226].

Financial Data and Key Metrics Changes - The company reported diluted earnings per share of $0.83 for Q3 2025, an improvement compared to the linked quarter [5] - Net interest income increased nearly $4,000,000, while the net interest margin expanded by one basis point [6] - The efficiency ratio improved to 57.1% compared to 59.3% in the linked quarter [7] - The provision for credit losses declined over $9,000,000, with the allowance for credit losses standing at 1.11% of total loans [8][10] Business Line Data and Key Metrics Changes - Annualized loan growth was 8%, with significant growth in commercial real estate and commercial and industrial loan balances [12] - Non-performing loans declined nearly $2,000,000, comprising 58 basis points of total loans compared to 61 basis points at the end of the previous quarter [10] - Fee-based income experienced a 1% decline compared to the linked quarter, driven by lower lease income [17] Market Data and Key Metrics Changes - The loan to deposit ratio increased to 88% from 86% at the end of the previous quarter [20] - Deposit balances were relatively flat, with increases in money market and interest-bearing demand accounts offset by declines in brokered CDs and governmental accounts [21][22] Company Strategy and Development Direction - The company continues to develop its business organically while awaiting the right acquisition opportunities [24] - The focus remains on managing net interest income and net interest margin through the current interest rate cycle [24] - The company anticipates loan growth to be between 4% and 6% for 2026, depending on pay down timing and economic conditions [26] Management's Comments on Operating Environment and Future Outlook - Management noted a reduction in provision for credit losses to a more normalized rate for Q3 [24] - The company expects to achieve positive operating leverage for 2025 compared to 2024, excluding the impact of reduced accretion income [25] - Management highlighted the potential for increased refinancing activity if mortgage rates fall [66] Other Important Information - The tangible equity to tangible assets ratio improved by 27 basis points to 8.5% at quarter end [23] - The company plans to manage capital in preparation for potential M&A opportunities while supporting dividends [95] Q&A Session Summary Question: Clarification on criticized and classified loans - Management expects some criticized and classified loans to revert in the near term, estimating $35,000,000 to $55,000,000 in upgrades or payoffs [34] Question: Loan growth guidance for 2026 - Management indicated that loan growth guidance for 2026 is slightly below this year's guidance but aligns with historical growth rates [36] Question: Impact of rate cuts on margin - Management confirmed that each 25 basis point rate cut is expected to result in a three to four basis point decline in net interest margin [46] Question: Update on North Star portfolio - Management reported that the high balance accounts in the North Star portfolio are down to about $15,000,000 to $16,000,000, with expectations for a gradual decline in charge-offs [48] Question: Appetite for buybacks and M&A - Management expressed a priority on building capital for M&A opportunities while maintaining an active buyback program [95]

Third Quarter 2025 Earnings Conference Call October 21, 2025 1 Safe Harbor Statement Statements in this presentation which are not historical facts are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. These forward-looking statements may include discussions of the strategic plans and objectives or anticipated future performance and ...