Peoples Bancorp (US:PEBO)2026-01-26 19:57Financial 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].