PEBO

- Peoples Bancorp reported third quarter 2026 results with net interest income of US$93.84 million and net income of US$32.61 million, alongside a declared quarterly dividend of US$0.42 per share payable in November. - Net charge-offs for the third quarter came in at US$6.01 million compared with US$6.83 million a year earlier, giving investors additional detail on how Peoples Bancorp is managing credit costs alongside higher earnings. - Attention now shifts to how Peoples Bancorp's higher quarterly earnings per share could influence the longer term investment narrative already in place. Spot opportunities with other banks showing similar earnings and dividend profiles by scanning our curated list of solid balance sheet and fundamentals (25 results) alongside Peoples Bancorp. To own Peoples Bancorp, you need to believe the bank can turn its larger platform and fee businesses into steadier earnings while keeping credit costs contained. The latest quarter points in that direction, with higher net interest income and earnings per share alongside net charge offs that stayed close to last year. The near term swing factor is still execution on loan mix, funding costs and any integration of acquired banks. Charge offs and net interest margin remain the biggest watchpoints. Based on the information provided, the latest results and dividend decision do not appear to materially change that risk reward balance. The most relevant update here is the third quarter 2026 earnings release, which provides more recent evidence on how Peoples Bancorp is running the franchise ahead of its planned scale up. Higher net interest income, net income of US$32.61 million and basic EPS of US$0.92 give you more current reference points for profitability. Those figures sit alongside full year to date numbers that show nine month net interest income of US$276.99 million and net income of US$89.57 million. For an investor focused on upcoming catalysts around acquisitions, fee income growth and balance sheet sensitivity, this set of results helps you test whether the current trajectory aligns with that thesis. Peoples Bancorp's current analyst narrative points to forecast revenue of US$1.1b and projected earnings of US$313.5 million by 2029. These figures are based on an assumed 35.0% yearly revenue growth rate and an earnings increase of about US$196 million from current earnings of US$117.1 million. Uncover why Peoples Bancorp's fair value indicates an 11% potential upside to its current price that could narrow quickly. Four fair value estimates from the Simply Wall St Community span roughly US$42 to almost US$80 per share for Peoples Bancorp, which shows just how far opinions can stretch. When you set those views against merger execution risk, credit quality trends and dividend sustainability, you get a wider menu of scenarios worth exploring. Explore 3 other Peoples Bancorp fair value estimates, including one that suggests as much as 108% potential upside from the current price. Disagree with existing narratives? Extraordinary investment returns rarely come from following the herd, so consider forming your own view. - A great starting point for your Peoples Bancorp research is our analysis highlighting 5 key rewards that could impact your investment decision. - See our latest analysis for Peoples Bancorp. The report includes a comprehensive fundamental analysis summarized in a single visual, the Snowflake, making it easy to evaluate Peoples Bancorp's overall financial health at a glance. If this update on Peoples Bancorp has sharpened your thinking, it can be useful to line it up against other companies with different income profiles, balance sheet strength and dividend approaches. The Simply Wall St Screener lets you quickly scan for stocks that fit those preferences so you can build a watchlist that matches your own risk and return goals. - For investors who want potential mispricings backed by solid fundamentals, consider running a screen focused on 27 high quality undervalued stocks to see which companies currently line up with that profile. - If steady income is a priority, use a filter that highlights 5 dividend fortresses and compare those payouts and coverage metrics with what Peoples Bancorp is offering. - For a focus on resilience and downside protection, start with a filter tuned to 30 resilient stocks with low risk scores and see which businesses match your comfort level on volatility and financial strength. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include PEBO. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Peoples Bancorp (PEBO) has put fresh numbers on the table with third quarter 2026 earnings, a new quarterly dividend of $0.42 per share, and updated net charge-off figures. At a share price of $38.20, Peoples Bancorp has seen short term momentum pick up with a 7 day share price return of 4.03%. The 1 year total shareholder return of 33.28% and 3 year total shareholder return of 64.56% point to a solid longer run record that frames this latest earnings beat, dividend declaration, and lower net charge offs as part of a broader repricing story rather than a one day reaction. Scan beyond Peoples Bancorp and line up other regional financials that show strong recent returns and resilient balance sheets with the hand picked 30 resilient stocks with low risk scores. After a 33% total return over the past year and fresh earnings momentum, the key tension for Peoples Bancorp is simple: Is most of the re rating already done, or does valuation still leave meaningful upside on the table? The most followed narrative on Peoples Bancorp presents a fair value estimate of about $42.33 a share, compared with the latest close at $38.20. That gap frames the recent rally as only part of what this view sees as a longer repricing process linked to scale and fee income. Expanding fee-based and specialty finance income through businesses such as leasing, SBA and USDA servicing, consumer cards, premium finance, wealth and insurance, with Capital expected to take fee income to roughly 23% of pro forma revenue, can diversify Peoples Bancorp away from pure spread income and support more stable revenue and EPS. See why 47 investors see Peoples Bancorp as 10% undervalued. Result: Fair Value of $42.33 (UNDERVALUED) Still, the narrative can crack if Peoples Bancorp stumbles on integrating Citizens and Capital Bancorp, or if higher-yielding specialty credit produces heavier than expected losses. Find out about the key risks to this Peoples Bancorp narrative. With sentiment leaning optimistic after this quarter for Peoples Bancorp, it makes sense to move fast and test the numbers yourself rather than just accept the consensus. To understand why some investors see specific strengths worth paying attention to, take a closer look at the 5 key rewards. If you stop with Peoples Bancorp, you only see one angle. Broaden your watchlist with focused ideas that match different goals, risk levels, and income needs. - Target steadier balance sheets by scanning a curated list of solid balance sheet and fundamentals (25 results) that highlights businesses with fundamentals built to handle tougher conditions. - Hunt for potential mispricings through the 27 high quality undervalued stocks and see which companies currently trade below their assessed worth on key metrics. - Prioritize upfront income and cash returns using the 5 dividend fortresses to pinpoint higher yielding payers that still show financial resilience. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include PEBO. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Peoples Bancorp has delivered a strong share price run in recent years, which naturally raises a practical question for anyone looking at the stock today. Is the current valuation supported by the earnings power the bank is generating right now and expects to produce over time, or has the price moved ahead of those fundamentals? - Over the past 3 years the stock has returned 64.6%, which puts real weight on whether current earnings can support a higher base valuation than in the past. - Recent earnings updates, including higher net interest income and integration costs tied to ongoing bank mergers, can influence how durable Peoples Bancorp's profit margins and future earnings trajectory look to investors. - Your read on Peoples Bancorp is one view; the desks covering it have another. See what analysts think Peoples Bancorp's shares could be worth. The issue now is whether Peoples Bancorp's latest earnings justify the price you see on the screen today. If you are weighing whether Peoples Bancorp's recent earnings justify its share price, it can help to compare it with other banks screened for 30 resilient stocks with low risk scores. The P/E ratio is often the cleanest way to summarise what you are paying for each dollar of earnings at a bank like Peoples Bancorp. On this measure, Peoples Bancorp trades at about 11.2x earnings, which is slightly below the Banks industry average around 11.6x and sits well under the broad peer group near 22.5x. The current reading also comes in below the multiple implied by a more tailored fair value framework that blends the bank's expected return on equity, book value profile, size and risk. Because the recent merger driven Q3 2026 results and higher net interest income have already reset expectations higher, that discount suggests the market is still pricing Peoples Bancorp on a more cautious footing than those fundamentals alone might indicate. For investors weighing whether that gap compensates for integration risks and credit cycle uncertainty, the detailed fair multiple and intrinsic value work below help show how much of a margin of safety may be on offer. Explore the numbers behind Peoples Bancorp's P/E valuation. Simply Wall St Narratives for Peoples Bancorp take that valuation puzzle and spell out the specific earnings, margin and growth paths that would need to hold for the stock to look materially richer or cheaper than it does today. Instead of stopping at a single ratio or model output, the Narratives lay out the future that figure depends on so you can watch how Peoples Bancorp's actual progress lines up with those assumptions over time, straight from the Community page. One of the top community narratives on Peoples Bancorp: 10% undervalued "The main thing that has to go right is that Peoples Bancorp executes on M&A integration and cost savings targets, while managing higher-yield credit portfolios like leasing and OpenSky cards..." Discover why this Narrative puts Peoples Bancorp at 10% undervalued. Market pricing tells you what investors pay today, while analyst projections sketch how earnings and returns might look a few years from now and offer a useful comparison with the current multiple. Explore where analysts expect Peoples Bancorp to be in a few years. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include PEBO. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Shares of Peoples Bancorp of North Carolina, Inc. PEBK have lost 1.9% since the company reported its earnings for the quarter ended Sept. 30, 2026. This compares to the S&P 500 Index's 1.1% gain over the same time frame. Over the past month, the stock has gained 1.9% compared with the S&P 500's 0.5% rise. Peoples Bancorp reported net earnings of $5.7 million for the third quarter of 2026, up 55.1% from $3.7 million in the year-ago quarter. Earnings per share increased 56.7% to $1.05 from 67 cents a year earlier. Net interest income rose 10.4% to $16.7 million from $15.1 million, supported by higher loan-related income and lower funding costs. However, non-interest income declined 6.1% to $6.7 million from $7.1 million, primarily due to reduced appraisal management activity. PEBK did not report separate operating segment results. Peoples Bancorp's net interest margin (NIM) improved to 3.85% in the third quarter from 3.58% in the prior-year period, reflecting favorable developments in its core lending and funding operations. Total interest income increased 4.4% to $22.3 million from $21.4 million, primarily driven by a $1.9 million increase in interest income and fees on loans. This improvement was partially offset by lower income from balances due from banks and investment securities. Interest expense decreased 10.1% to $5.7 million from $6.3 million, benefiting from lower rates paid on interest-bearing liabilities following Federal Reserve rate reductions between September and December 2025. The combination of higher loan income and reduced funding expenses supported profitability despite weaker non-interest revenues. Peoples Bancorp of North Carolina, Inc. price-consensus-eps-surprise-chart | Peoples Bancorp of North Carolina, Inc. Quote Non-interest expenses decreased 6.9% to $15.8 million from $16.9 million in the year-ago quarter, reflecting lower professional fees, debit card expenses and appraisal management costs. Professional fees declined 56.7% primarily due to reduced legal expenses. Appraisal management expenses fell 19.1% as appraisal volumes decreased, while debit card expenses declined 38.6%. These savings were partially offset by higher occupancy and miscellaneous expenses, including costs associated with deferred compensation arrangements. The provision for credit losses declined to $0.3 million from $0.5 million, reflecting reductions in certain commercial construction and non-owner-occupied commercial real estate loan balances, alongside lower net charge-offs. Total loans reached $1.30 billion as of Sept. 30, 2026, compared with $1.20 billion as of Dec. 31, 2025. Total deposits increased to $1.57 billion from $1.51 billion over the same period. Core deposits, a non-GAAP measure, reached $1.44 billion, representing 91.90% of total deposits, compared with $1.35 billion, or 89.44%, as of Dec. 31, 2025. Management emphasized the importance of core deposits as a relatively inexpensive funding source that supports PEBK's profitability. Total assets were $1.76 billion as of Sept. 30, 2026, compared with $1.70 billion as of Dec. 31, 2025. Non-performing assets totaled $4.3 million as of Sept. 30, 2026, compared with $4.2 million as of Dec. 31, 2025. Their proportion of total assets remained unchanged at 0.25%. The allowance for credit losses on loans increased to $10.7 million from $10.1 million, although the allowance-to-total-loans ratio declined to 0.82% from 0.84% over the same period. Management considers the existing allowance adequate but acknowledged that changing economic conditions and regulatory requirements could necessitate future adjustments. Peoples Bancorp reported cash dividends of 21 cents per share for the third quarter compared with 20 cents in the prior-year period. Shareholders' equity was $157.7 million as of Sept. 30, 2026, compared with $157.1 million as of Dec. 31, 2025. However, the equity-to-assets ratio declined to 8.95% from 9.23%, primarily reflecting increased unrealized losses on available-for-sale investment securities. PEBK did not disclose any acquisitions, divestitures or major restructuring activities during the quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Peoples Bancorp of North Carolina, Inc. (PEBK) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Peoples Bancorp stock quietly entered this earnings week on a soft tape, down over the past one and three months, then popped 3% to about $37.50 after the Q3 2026 release. Traders are reacting to one thing above all else: profit power looked solid, with reported diluted earnings per share at $0.91 and adjusted earnings at $1.04, ahead of expectations. For a regional bank, that kind of earnings beat matters most when you connect it to the longer view on valuation and balance sheet strength. The fuller story sits in how those profits stack up against the reported P/E, the dividend stream and the coming merger integrations. Like the earnings momentum at Peoples Bancorp but want a filter that leans into solid balance sheets and fundamentals across more options in the market? Put these Q3 numbers in context with our list of solid balance sheet and fundamentals stocks (25 results). - Total Revenue (Q3 2026 vs. Q3 2025): US$115.9 million vs. US$107.9 million (up about 7%) - Net Income (Excl. Extra Items, Q3 2026 vs. Q3 2025): US$32.3 million vs. US$29.2 million (up about 11%) - Basic EPS (Q3 2026 vs. Q3 2025): US$0.92 vs. US$0.83 (up about 10%) - Net Interest Margin (Q3 2026 vs. Q3 2025): 4.23% vs. 4.16% (slight improvement in lending spread) Tired of scrolling through dense earnings tables and balance sheet line items to figure out what matters for Peoples Bancorp? Get a clear visual view of the dividend history, payout, and yield trend in the full financial picture via our company report for Peoples Bancorp. "Expanding fee-based and specialty finance income through businesses such as leasing, SBA and USDA servicing, consumer cards, premium finance, wealth and insurance, with Capital expected to take fee income to roughly 23% of pro forma revenue, can diversify Peoples Bancorp away from pure spread income and support more stable revenue and EPS." Peoples Bancorp is at least pointing in the right direction on this goal. Fee income rose 5% quarter on quarter, helped by leasing and wealth related lines. Net interest margin nudged higher and net interest income improved, which shows the mix is not pulling earnings backward. With Citizens closing soon and Capital still ahead, Q3 looks like an early proof point rather than a full stress test of that 23% target. "The main thing that has to go right is that Peoples Bancorp executes on M&A integration and cost savings targets, while managing higher-yield credit portfolios like leasing and OpenSky cards so that net charge-offs stay in line with its targeted risk and return profile." Execution risk is not cleared yet, although Q3 gives some reassurance. Integration work is ramping as Citizens nears close and Capital sits in the queue, but adjusted efficiency ratio already improved to 57.3%. Credit metrics are mixed. Net charge-offs ticked up to 35 bps annualized, with pressure in C&I, CRE and consumer indirect, yet small ticket lease charge-offs fell 25% and nonperforming loans declined, which suggests tighter credit discipline even as specialty exposure grows. The price and this Narrative do not agree. → Uncover what this Narrative says Peoples Bancorp is actually worth. Peoples Bancorp just showed how a single quarter can reframe the mix of profit drivers investors focus on. The real opportunity could be spotting stocks that look misaligned with their fundamentals before the gap narrows. - Company 1 - 48% below our estimate - shifts from chasing any big public contract to prioritizing projects that justify rising labor and technology spending. - Company 2 - 26% below our estimate - expands capacity so high speed AI data center, networking and defense orders can move from trials into scaled production. - Company 3 - 33% below our estimate - tightens factory footprints and leans into aftermarket service work as higher margin power and nuclear contracts shape the backlog. Those are three of them. See all 34 potentially undervalued companies → This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include PEBO. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

This article first appeared on GuruFocus. - Diluted EPS: $0.91 reported; $1.04 adjusted for one-time items, exceeding consensus of $0.93. - One-Time Items: $4.5 million loss on investment securities (reduced EPS by $0.10); $1.5 million acquisition-related expenses (reduced EPS by $0.03). - Net Interest Income: Up 1% ($1.1 million) quarter-over-quarter; up 5% ($12.8 million) for first nine months of 2026. - Net Interest Margin: Expanded 8 basis points; accretion income of $1 million contributed 4 basis points. - Fee-Based Income: Grew 5% quarter-over-quarter; up 8% for first nine months of 2026. - Provision for Credit Losses: $3.6 million, down 24% from the linked quarter. - Allowance for Credit Losses to Total Loans: 1.11%, down 3 basis points from June 30. - Net Charge-Off Rate: Annualized quarterly rate of 35 basis points vs. 31 basis points in the linked quarter. - Non-Performing Loans: Declined $4 million, or 11%, from the linked-quarter end. - Criticized/Classified Loans: Criticized loans decreased $18 million; classified loans grew $30 million. - Loan Balances: Up $19 million, or 1% annualized, from June 30; commercial payoffs exceeded $160 million. - Non-Interest Expenses: Up 2% quarter-over-quarter (including $1.5 million acquisition expenses); flat excluding those expenses; up 4% for first nine months of 2026. - Efficiency Ratio: 58.5% reported; 57.3% adjusted for acquisition-related expenses (vs. 57.9% in Q2). - Return on Average Assets: 1.36%. - Return on Average Stockholders' Equity: 10.44%. - Investment Portfolio: 18.3% of total assets, down from 19.1% at June 30; sold ~$59 million of securities at a $4.5 million loss. - Loan-to-Deposit Ratio: 91.9% vs. 91.5% at the linked-quarter end. - Deposits: Core deposits up $19 million; interest-bearing demand up $52 million and money market up $46 million, offset by $44 million decline in retail CDs and $34 million decline in non-interest-bearing accounts. - Demand Deposits: 36% of total deposits, flat from June 30; non-interest-bearing deposits 21% of total deposits, unchanged. - Capital Ratios: All regulatory capital ratios improved; tangible equity to tangible assets declined on higher unrealized AFS losses. - 2026 Guidance: NIM of 4.2%4.3%; quarterly fee-based income of $28M$30M; quarterly non-interest expense of $78M$80M; loan growth of 6%8%; $11M$13M of Q4 acquisition-related expenses. - 2027 Guidance: NIM of 4.3%4.5%; quarterly fee-based income of $31M$33M; quarterly non-interest expense of $80M$82M (Q2Q4); loan growth of 3%5%. - Warning! GuruFocus has detected 9 Warning Signs with PEBO. - Is PEBO fairly valued? Test your thesis with our free DCF calculator. Release Date: October 20, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. - Adjusted diluted EPS of $1.04 exceeded consensus estimates of $0.93. - Net interest income grew 1% and net interest margin expanded 8 basis points. - Fee-based income increased 5% linked-quarter and 8% year-to-date. - Provision for credit losses declined 24% and non-performing loans fell 11%. - Regulatory capital ratios improved, and return on average assets was a strong 1.36%. - A $4.5 million loss on investment securities reduced diluted EPS by $0.10. - Annualized net charge-off rate rose to 35 basis points from 31 basis points. - Classified loans increased $30 million due to downgrades in commercial real estate and C&I. - Loan growth was modest at 1% annualized, with $160 million in commercial payoffs. - Deposit competition is increasing, and non-interest-bearing deposits declined $34 million. Q: Can you provide an update on the expected close timing for the Capital Bancorp acquisition next year? A: Tyler Wilcox (CEO) stated that the expectation for closing the Capital Bancorp deal is some time very late in the first quarter or the beginning of the second quarter of 2027. Q: With the Citizens merger closing, what is the outlook for the net interest margin (NIM) in the fourth quarter, considering the securities restructuring and deposit franchise? A: Kathryn Bailey (CFO) projected an 8 to 10 basis point lift in the NIM for the next quarter. This is attributed to the addition of Citizens, the recent securities restructure, and the attractiveness of their deposit franchise. Q: How should we think about provisioning in 2027, especially given the likely step-up in the reserve from the Capital deal? A: Kathryn Bailey (CFO) expects the provision to elevate from recent levels. She anticipates the allowance to total loans ratio, currently at 1.11%, will stay in that range and potentially go up to 1.2% over time with Capital coming on board, which will help stabilize the ratio. Q: Can you provide color on the drivers of loan growth for 2027, specifically regarding commercial real estate and leasing? A: Tyler Wilcox (CEO) anticipates overall commercial growth of about 5%, with leasing growth around 6% to 7%. He noted that growth will be more weighted toward C&I than CRE, though positive CRE growth is still expected. Consumer books are expected to be a drag due to a lack of refinance business and a slowdown in indirect lending. Q: What is the status of the commercial loan pipeline and the expected payoff headwinds as we move into 2027? A: Tyler Wilcox (CEO) noted that the third quarter was the third-highest ever for commercial production, with positive demand and a favorable mix shift into C&I. He expects payoff headwinds to ease, noting that of the ~$480 million in expected 2026 payoffs, $460 million has already occurred, with $150 million to $180 million remaining. Q: Are there any other security sales planned to stay under the $10 billion asset threshold? A: Kathryn Bailey (CFO) stated that a majority of the Citizens portfolio will be sold at or near the close of the merger. Further sales of the company's own portfolio will depend on asset size, but they might take another $2 million to $3 million loss in the fourth quarter if necessary. Q: What is the updated interest rate sensitivity, and what is the impact of a 25-basis-point rate hike on the margin? A: Kathryn Bailey (CFO) quantified the benefit of a 25-basis-point rate increase as approximately 5 basis points to the margin. She noted the company is relatively neutral to slightly asset sensitive. Q: What is the outlook for deposit betas in 2027 given the assumed rate increases? A: Kathryn Bailey (CFO) stated that the non-maturity deposit beta, inclusive of non-interest-bearing deposits, is about 30%. Q: Can you bridge the gap between the current core expense run rate and the higher guidance for the first quarter of 2027? A: Kathryn Bailey (CFO) explained that the third quarter was lighter than anticipated due to timing, which will shift into the fourth quarter. The increase is also driven by annual salary and benefit increases, with a meaningful increase in benefit cost expectations for 2027 over 2026. Q: What is the expected impact of the Durbin Amendment on fee income? A: Kathryn Bailey (CFO) confirmed the previously stated annual impact of $11 million to fees beginning in July 2028 remains unchanged. She also noted that the Capital acquisition will have a minimal impact on Durbin interchange income. Q: What are the credit trends outside of the few relationships highlighted in the presentation? A: Tyler Wilcox (CEO) reported that commercial credit remains very strong, with criticized loans coming down. While classified loans saw a slight increase, they are expected to be resolved with minimal losses. The one area of slight concern is the indirect consumer portfolio, where delinquency has increased slightly due to consumer pressure. Q: What is the outlook for the small-ticket leasing business in 2027? A: Tyler Wilcox (CEO) confirmed the expectation for the small-ticket leasing portfolio to grow in 2027, with growth weighted toward the second half of the year. He noted the company has the right team and credit box in place to grow the business profitably. Q: What is the expected impact of the Capital Bancorp acquisition on the 2027 net interest margin (NIM) guide? A: Kathryn Bailey (CFO) stated that because the Capital deal will not close until late Q1 or early Q2, the full-year 2027 NIM is not expected to reach 5%. However, once Capital is fully integrated, the quarterly NIM is expected to approach or be around 5%. Q: What drove the slight step-down in the fourth-quarter fee income guide despite the Citizens contribution? A: Kathryn Bailey (CFO) attributed the variance primarily to lease income, which can be volatile. She noted that the third quarter included $1 million to $1.5 million in end-of-term transaction gains that elevated the run rate above the typical trend. Q: What was the exit margin for the third quarter, and what are the trends in deposit rates? A: Kathryn Bailey (CFO) noted the exit margin was slightly higher than the reported full-quarter margin, with a benefit of 5 to 8 basis points. She also mentioned seeing more competition for deposits in the market, which the company is actively managing, likely through retail CD pricing. Q: When will the full cost savings from the Capital Bancorp acquisition be realized? A: Kathryn Bailey (CFO) stated that the full cost savings from the Capital acquisition will not be realized in 2027 and will not be fully realized until For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Peoples Bancorp (PEBO) reported $119.49 million in revenue for the quarter ended September 2026, representing a year-over-year increase of 3.7%. EPS of $1.04 for the same period compares to $0.90 a year ago. The reported revenue represents a surprise of -2.85% over the Zacks Consensus Estimate of $122.99 million. With the consensus EPS estimate being $0.92, the EPS surprise was +13.04%. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health. As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately. Here is how Peoples Bancorp performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: - Balance - Total earning assets: $8.59 billion compared to the $8.72 billion average estimate based on five analysts. - Net Interest Margin: 4.3% versus 4.3% estimated by five analysts on average. - Net charge-offs as a percent of average total loans (annualized): 0.4% versus the five-analyst average estimate of 0.3%. - Efficiency ratio: 58.5% versus 59.9% estimated by five analysts on average. - Total Non-interest income: $25.65 million versus the five-analyst average estimate of $29.07 million. - Net Interest Income: $93.84 million versus $93.89 million estimated by four analysts on average. - Bank owned life insurance income: $1.36 million versus the three-analyst average estimate of $1.2 million. - Insurance income: $4.22 million versus $4.49 million estimated by three analysts on average. - Deposit account service charges: $4.68 million compared to the $4.51 million average estimate based on three analysts. - Mortgage banking income: $0.58 million compared to the $0.64 million average estimate based on three analysts. - Electronic banking income: $6.65 million versus $6.61 million estimated by three analysts on average. - Net Interest Income on a fully tax-equivalent basis: $94.05 million compared to the $93.87 million average estimate based on three analysts. View all Key Company Metrics for Peoples Bancorp here>>> Shares of Peoples Bancorp have returned -6.6% over the past month versus the Zacks S&P 500 composite's +0.7% change. The stock currently has a Zacks Rank #1 (Strong Buy), indicating that it could outperform the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Peoples Bancorp Inc. (PEBO) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. - Management is focused on executing a dual-merger strategy with Citizens and Capital Bank Corp to expand market footprint and enhance product capabilities. - Performance was characterized by high commercial production, marking the third-highest quarter ever, despite significant commercial payoffs of over $160 million. - The bank is strategically managing its balance sheet to remain below the $10 billion asset threshold through year-end, which included a planned $4.5 million loss on investment securities. - Net interest margin expansion of 8 basis points was primarily driven by increased loan yields and lower deposit costs, despite a reduction in accretion income. - Credit quality remains stable with a 24% reduction in provision for credit losses, though management noted a slight increase in classified loans due to specific commercial downgrades. - Small ticket leasing charge-offs have declined throughout 2026 as management refined the credit box to minimize volatility in this business segment. - Management expects to achieve positive operating leverage in both 2026 and 2027, supported by the integration of the Citizens and Capital mergers. - Net interest margin is projected to reach 4.3-4.5% in 2027, assuming three 25 basis point rate hikes by the Federal Reserve through September 2027. - Loan growth for 2027 is forecasted between 3% to 5%, heavily dependent on the timing of portfolio paydowns and the return to growth in the leasing business. - The Capital Bank Corp merger is expected to close in late Q1 or early Q2 of 2027, with full cost savings not anticipated until 2028. - Management anticipates an increase in criticized and classified loan balances in Q4 2026 as the Citizens loan portfolio is onboarded. - Recognized a $4.5 million loss on the sale of $59 million in investment securities to maintain asset levels below $10 billion and improve future portfolio yield. - Acquisition-related expenses for the Citizens merger are expected to range between $11 million and $13 million during the fourth quarter of 2026. - Management confirmed an estimated $11 million annual impact from Durbin Amendment regulations beginning in July 2028. - Identified a slight increase in delinquency within the indirect consumer portfolio, attributed to inflationary pressures on consumers and rising fuel prices. - Management expects the close in late Q1 or early Q2 of 2027 and does not anticipate a growth 'trough' during the transition due to high banker and client continuity. - The acquisition is expected to eventually push the quarterly net interest margin toward the 5% level once fully integrated. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. - Despite high production, the bank faced $460 million in payoffs through three quarters, largely driven by sales of high-quality multifamily projects. - Forecasted payoffs for the remainder of the year are between $150 million and $180 million, which remains a primary variable for net loan growth. - Management characterized the bank as slightly asset sensitive, with a 25 basis point rate hike providing approximately 5 basis points of margin benefit. - The 2027 guidance assumes a non-maturity deposit beta of approximately 30%. - Provisioning is expected to elevate from recent lows, with the allowance-to-total-loans ratio likely moving from 1.11% toward 1.2% as the Capital portfolio is onboarded. - Citizens acquisition is not expected to materially impact the coverage ratio. - The step-up in 2027 expenses is driven by the Citizens acquisition, annual salary increases, and a meaningful projected rise in employee benefit costs. - Q1 2027 expenses are expected to be higher than the subsequent quarters of 2027 due to annual increases in salaries and benefit costs, while Q1 fee-based income is typically elevated by annual performance-based insurance commissions.

Image source: The Motley Fool. Tuesday, Oct. 20, 2026 - President and Chief Executive Officer - Tyler J. Wilcox - Chief Financial Officer and Treasurer - Katie Bailey Operator: Good morning. And welcome to Peoples Bancorp Inc. Conference Call. My name is Gary. And I will be your conference facilitator. Today's call will cover a discussion of the results of operations for the 3 and 9 months ended 09/30/2026. Please be advised that all lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question and answer period. If you would like to ask a question during this time, simply press *1 on your telephone keypad, and questions will be taken in the order they received. If you would like to withdraw your question, press *2. This call is also being recorded. If you object to the recording, please disconnect at this time. Please be advised that the commentary in this call will contain projections or other forward looking statements regarding Peoples' future financial performance or future events. These statements are based on management's current expectations. The statements in this call, which are not historical fact, are forward looking statements and involve a number of risks and uncertainties detailed in People's Securities and Exchange Commission filings. Management believes the forward looking statements during this call are based on reasonable assumptions within the bounds of their knowledge of Peoples business and operations. However, it is possible actual results may differ materially from these forward looking statements. Peoples disclaims any responsibility to update forward looking statements after this call, except as may be required by applicable legal requirements. Peoples Third Quarter 26 Earnings Release and Earnings Conference Call presentation were issued this morning and are available at peoplesbankcorp.com under Investor Relations. A reconciliation of the nongenerally accepted accounting or GAAP financial measures discussed during this call to the most directly comparable GAAP financial measures is included at the end of the earnings release. This call will include about 15 to 20 minutes of preparatory commentary followed by a question and answer period, which I will facilitate. An archived webcast of this call will be available on peoplesbankcorp.com in the Investor Relations section for 1 year. Participants in today's call will be Tyler J. Wilcox, President and Chief Executive Officer and Katie Bailey, Chief Financial Officer and Treasurer. And each will be available for questions following opening statements. Mr. Wilcox, you may begin your conference. Tyler J. Wilcox: Thank you, Gary. Good morning, everyone, and thank you for joining our call today. Activity levels at Peoples are high, and we focus on a number of strategic priorities. We are working to close the Citizens merger at the end of this month. We also recently announced the pending acquisition of Capital Bank Corp which we expect to close in 2027. We are excited about these strategic initiatives, and the opportunity to enhance our capabilities, products, services, and company performance as a result of these investments. Focusing on the present, we continue to be pleased with our consistent and high performing core results as reflected in our third quarter 26 earnings which we released earlier this morning. For the third quarter, we reported diluted earnings per share of $0.91 When adjusted for 1-time items, our diluted EPS for the quarter was $1.04 which exceeded consensus analyst estimates of 93¢. Our 1-time items for the quarter included a $4.5 million loss on investment securities, which reduced diluted EPS by $0.10. This was part of our planned effort to remain below $10 billion in assets with the pending Citizens merger and acquisition related expenses of $1.5 million which reduced our diluted EPS by $0.03 Some of our highlights for the third quarter include improvements in our net interest income, which was up 1%, expansion in our net interest margin of 8 basis points, growth in our fee based income of 5%. Provision for credit losses declined 24%. Improvement in our efficiency ratio adjusted for onetime items, higher return on average assets, which was 1.36%, increased return on average stockholders' equity of 10.44%, and declines of 11% in our non-performing loans, growth in our lower cost interest bearing demand deposit and money market accounts of nearly $100 million combined and improved regulatory capital ratios. Our provision for credit losses declined to $3.6 million, a 24% reduction compared to the second quarter. Our allowance for credit losses to total loans was 1.11%, a 3 basis point decrease compared to June 30. The reduction in our provision for credit losses for the quarter was due to declines in reserves for individually analyzed loans coupled with updates to our prepayment curtailment and funding rates, partially offset by higher net charge offs. Our annualized quarterly net charge off rate grew to 35 basis points, compared to 31 basis points, for the linked quarter, For the third quarter, we had higher commercial and industrial loan charge offs, along with increases in commercial real estate and consumer indirect loan charge offs. At the same time, we had a 25% reduction in our lease charge offs. As anticipated, our small ticket lease charge offs have declined throughout 2026. We remain committed to our small ticket leasing business and see a return to growth coming throughout the year 2027. With a focus on appropriate risk adjusted returns and minimized volatility. For the third quarter, our nonperforming loans declined $4 million or 11%, compared to the linked quarter end, which was driven by lower nonaccrual loans. Criticized loans decreased $18 million while classified loans grew $30 million. For the third quarter, we had downgrades of 2 commercial real estate relationships and 1 commercial and industrial relationship, which drove the increase. We do not anticipate significant losses as we are in the process of exiting these credits. We expect an increase in our criticized and classified loan balances during the fourth quarter as we onboard the loan portfolio from the Citizens merger. Our delinquency levels continue to improve with 99.2% of our loan portfolio considered current at September 30. Compared to 99.1%, at the linked quarter end. Moving on to loan balances. We had increases of $19 million or 1%, annualized, compared to June 30. We mentioned on our last quarterly earnings call that we had expected payoffs later in the year that would be a headwind for loan growth and we realized some of that this quarter with commercial payoffs of over $160 million. We have also been selective with our lending activity as we are strategically managing under the $10 billion mark through year end. Most of our increases in balances was in construction loans, which were up $40 million while commercial and industrial loans and home equity lines of credit grew $34 million and $10 million respectively. We had reductions of $38 million in our commercial real estate loans, which were due to the aforementioned payoffs. While residential real estate loans declined $14 million and leases were down $12 million. For the fourth quarter, the Citizens merger is expected to add nearly $350 million of loans before purchase accounting adjustment. I will now turn the call over to Katie for a discussion of our financial performance. Kathryn Bailey: Thanks, Tyler. Our net interest income grew 1%, or $1.1 million while our net interest margin improved 8 basis points. Increased investment in loan yields contributed to the higher margin while net interest income benefited from higher loan income. Accretion income totaled $1 million compared to $1.1 million for the linked quarter contributing 4 basis points and 5 basis points to net interest margin respectively. For the first 9 months of 2026, net interest income improved 5%, or $12.8 million Net interest margin expanded 8 basis points over the same period and was mostly attributable to our lower deposit costs. Our interest expense on deposits declined nearly $19 million compared to the first 9 months of 2025. Accretion income totaled $3.4 million compared to $7.8 million for 2025. Contributing 5 basis points and 12 basis points to net interest margin, respectively. As it relates to our interest rate exposure, we are relatively neutral to slightly asset sensitive. We have been in this position for several quarters and the 2 pending mergers will not have a meaningful impact on our overall interest rate risk position. Moving on to our fee based income, we had growth of 5% compared to the linked quarter, driven by higher lease income as well as increases in deposit account service charges trust and investment income, and bank owned life insurance income. For the first 9 months of 2026, fee based income grew 8%. The improvement was mostly due to increased lease income, trust and investment income, and deposit account service charges. Our noninterest expenses were up 2% compared to the linked quarter. This included $1.5 million of acquisition related expenses which were largely professional fees. Excluding these expenses, noninterest expenses were flat compared to the second quarter. For the first 9 months of 2026, noninterest expenses were up 4%. This included $1.9 million of acquisition related expenses. Which was the primary driver of our higher professional fees. Salaries and employee benefits also contributed to the growth along with operating lease expense. Which corresponds to our fee based lease income. Our reported efficiency ratio was 58.5% for the third quarter, an increase compared to 58.3% for the linked quarter. Excluding acquisition related expenses, our efficiency ratio was 57.3% for the third quarter compared to 57.9% for the second quarter. For the first 9 months of 2026, our reported efficiency ratio was 58.5% compared to 59% for the prior year, and was driven by higher revenue. Excluding acquisition related expenses, our adjusted ratio was 57.9% for 2026 compared to 59% for 2025. Looking at our balance sheet, our investment portfolio as a percentage of total assets declined to 18.3% at quarter end. Compared to 19.1%, at June 30. We completed another sale of securities as part of our investment portfolio restructuring related to the Citizens merger which resulted in a $4.5 million loss for the quarter on the sale of approximately $59 million of securities. In addition to providing flexibility to remain under $10 billion, this will also improve the yield of our investment portfolio. Our loan to deposit ratio grew at quarter end to 91.9% compared to 91.5% at the linked quarter end mostly due to lower deposits and some loan growth for the third quarter. Our core deposit balances, which excludes brokered CDs, were up $19 million compared to June 30. We had significant increases in our interest bearing demand in money market accounts, which were up $52 million and 46 million respectively. These increases were partially offset by reductions of $44 million in retail CDs and $34 million in non interest bearing accounts. Our demand deposits as a percent of total deposits was flat at 36% for both September 30 and June 30. Our non interest bearing deposits to total deposits ratio was unchanged at 21%, at quarter end and at June 30. The Citizens merger is expected to add approximately $550 million of deposits for the fourth quarter of 26. As far as our capital levels, all of our regulatory capital ratios improved compared to the linked quarter end, as earnings outpaced dividends. Our tangible equity to tangible asset ratio declined this quarter and was negatively impacted by increased unrealized losses on our available for sale investment portfolio. I will now turn the call back over to Tyler for his closing comments. Tyler J. Wilcox: Thank you, Katie. We are focusing on successfully closing the Citizens merger this month. While also prioritizing our work on the pending capital merger. These mergers will set the stage for our future strategic growth. Including expanded market areas within our footprint, improved financial metrics such as higher net interest margin and lower efficiency ratio, and the ability for our associates to have more meaningful conversations with existing and new clients about the diversified products and services we provide. For the fourth quarter and full year of 2026, have the following performance expectations excluding the impact of noncore expenses, but including our Citizens merger. We expect to achieve positive operating leverage for 2026 compared to 2025 We anticipate our net interest margin will be between 4.2-4.3% for the full year of 2026. We believe our quarterly fee based income will range between $28 million and $30 million We expect quarterly total non interest expense to be between $78 and $80 million. We believe loan growth will be between 2% to 8% for 2026 compared to 2025. Which includes the acquired loans from Citizens. We continue to anticipate a reduction in our net charge offs for 2026 compared to 2025, which we expect to continue to positively impact the provision for credit losses excluding any changes in the economic forecasts. We expect between $11 million and $13 million of acquisition related expenses during the fourth quarter for the Citizens merger. We would also like to provide some high level expectations for 2027 excluding the impact of non core expenses and the planned capital merger. We expect to achieve positive operating leverage for 2027, compared to 2026. For the full year of 2027, we anticipate our net interest margin will be between 4.3-4.5%. This assumes a 25 basis point increase in rates from the Federal Reserve in late 2026, 1 in March 2027, and another in September 2027. We believe our quarterly fee based income will range between $31 and $33 million Our first quarter fee based income is typically elevated as it includes annual performance based insurance commissions. We expect quarterly total noninterest expense to be between $80 million and $82 million for the second, third, and fourth quarters of 27 with the first quarter of 27 being higher due to the annual expenses we typically recognize during the first quarter of each year. We believe our loan growth will be between 3% to 5% compared to 2026 which is dependent on the timing of paydowns on our portfolio. We anticipate similar charge offs and net charge off rate for 2027 compared to 2026 which includes projected increases related to the addition of the Citizens portfolio. We look to have a strong close to our 2026 performance and continue to be optimistic about our strategic plans and ability to execute on the pending mergers and future growth. Laying out a path beyond the $10 billion threshold is the culmination of years of strategic planning and patience. The investments we have made in people, technology, and infrastructure are in place today and operating as if we have already crossed that milestone. We have proven our ability to provide reliable results for our shareholders and improve performance both organically and through acquisitions. We will continue to place importance on the value we provide as an investment to our shareholders and the return that we produce. We will focus on being a top notch employer and sharing our culture with our new associates from our mergers. We will make meaningful investments in the communities we serve and provide high quality trusted solutions for all of our clients. This concludes our commentary, and we will open the call for questions. Once again, this is Tyler J. Wilcox and joining me for the Q and A session is Katie Bailey, our Chief Financial Officer. I will now turn the call back into the hands of our call facilitator. Operator: We will now begin the question and answer session. To ask a question, you may press *1 on your telephone keypad. If you are using a speakerphone, please pick up your handset before pressing the keys. To withdraw your question, please press *2. At this time, we will pause momentarily to assemble our roster. The first question today is from Ryan Payne with D. A. Davidson. Please go ahead. Ryan Payne: This is Ryan Payne on for Jeff Rulis today. Heard you on the expected Citizens Close later this month. Any update on close timing for capital next year? Tyler J. Wilcox: Yes. Our expectation is sometime very end of first quarter, beginning of second quarter. Ryan Payne: Got it. And on the security sale, maybe some more detail on that. What was the timing of that during the quarter? Yield on those securities? And as well as the expected impact on NIM going forward? Kathryn Bailey: Yeah. So it happened in August. And the yield on the amount we sold was about 1.5%. And the impact to margin on a go forward, I think was the third part of your question. I think we expect a slight increase of a few basis points. Last from me, Durbin Impact. Ryan Payne: We last heard an $11 million annual hit to those fees beginning July 2028. Wanted to confirm that or if anything has changed there. Kathryn Bailey: No. that is still the number. And, again, as a reminder, we noted in the capital announcement that they have minimal impact to our Durbin. And to interchange income, so the number has not really changed. Understood. Ryan Payne: Thanks, guys. Thank you. Tyler J. Wilcox: Thank you, Ryan. Operator: The next question is from Tim D'Alessio with Raymond James. Please go ahead. Tim D'Alessio: Hey, good morning, Tyler. Good morning, Katie. Just filling in for Daniel this morning. Kathryn Bailey: Hey. Morning. Tyler J. Wilcox: Hey, Tyler. Tim D'Alessio: Maybe starting off on loan growth, Growth is obviously relatively modest this quarter. You kind of laid out some of the factors that played in there and kind of laid out the 3% to 5% target for next year. Just curious how the commercial pipelines are looking today, where you are seeing the drivers of growth coming from in the near term. And whether you are expecting some of those payoff headwinds to start easing as we move into 2027 here? Tyler J. Wilcox: Thanks for the question. My hope is yes. We will see some of that easing. Let me lay out a few thoughts for you. As to demand. This was actually our third highest quarter ever of commercial production, and I really like the mix shift into C&I that we have seen throughout the year. And so demand remains really positive. For reference, we expected this year, about $480 million in payoffs. And through 3 quarters, we have seen about 460 million in payoffs. The vast majority of that, about 40% is via sales of primarily of multifamily. Projects that. Which says that there is a high demand for the high quality stuff that our folks are producing. And for the remainder of the year, there is probably about a $150 to $180 million of expected forecasted payoffs. And whether that materializes in the fourth quarter or materializes kind of or pushes into the first quarter is 1 of the main questions weighing on that loan growth for the forward guidance. So did I miss anything in your question there? Tim D'Alessio: No. No. I. No. That was very helpful color. I appreciate that. And, you know, maybe, Katie, just, you know, flipping over to the margin, we appreciate the guidance for 2027. With the increases that you guys are assuming for next year, just curious about how you are thinking about what we should expect for betas on the deposit side. That should be factored into the 2027 guide. Kathryn Bailey: Yeah. Noninterest or nonmaturity beta is inclusive of Noninterest bearing is about 30%. Okay. Appreciate that. Tim D'Alessio: And then maybe just finishing up, you know, just, Tyler, maybe 1 on credit. Outside of the few relationships you highlighted in the presentations, you know, are you seeing any meaningful changes in credit trends across broader commercial portfolio or any particular areas you keeping your eye on more closely with the recent move in rates? Tyler J. Wilcox: No. Not so far. Thankfully, you know, commercial credit remains very strong. You know, last quarter, we were talking about the, you know, increase in criticized. that is come down. Now we see the slight increase in classified. As we guided, we expect those to, you know, pay off and the bank and with minimal losses. So the core commercial credit remains incredibly strong. The significant reduction in the small ticket leasing is also, you know, extremely positive. I would say the 1 area where we have seen a slight increase in delinquency on the indirect portfolio as I think there is some pressure on consumers in that area, which is also weighing on the production with interest rates and fuel prices increasing. So that is an area where we are watching, but we continue to you know, generate, that production at near 57 credit scores consistent with our past practices. So very cautiously optimistic on credit overall and particularly in the commercial space. Okay. Well, that is terrific color, guys. I will step back. Thank you. Operator: The next question is from Nathan Race with Piper Sandler. Please go ahead. Adam Kroll: Hi, good morning. This is Adam Kroll on for Nathan. Good morning, Tyler and Katie, and thanks for taking my questions. Kathryn Bailey: Yeah. Good Maybe for Tyler to start. Adam Kroll: I know the loan growth guide excludes capital, but they have historically been a pretty high growth franchise. I guess I would be curious if there any transition period after the deal closes? Where maybe growth is a little softer or just any color there. Thanks. Tyler J. Wilcox: I would say as to capital, 1 of the most exciting things to me is the level of mutual engagement that we have with the capital team and the capital leadership particularly. And a big part of that is obviously the continuity for their bankers, their clients, and you know, their entire organization of our intent to you know, continue the things that they are doing that made them attractive purchase in the first place. So I do not anticipate any kind of trough because the, you know, the lead in of the next you know, 4, 5, 6 months of engagement together That includes our bankers, our credit staff, their leadership, their bankers, and their clients is, you know, mutually committed to continuing what it is they do. So we do expect that their historically higher growth rates than ours are something that we can perpetuate and is part of what makes the deal appealing. Got it. I appreciate the color there. Adam Kroll: And, Tyler, I think you-- On the last call, you mentioned small ticket leasing could potentially begin to grow again in 27. Is that still the case? And is any of that contemplated in the NIM guide that you guys It is. Tyler J. Wilcox: it is baked in as part of our of our forecast. And we do believe it will grow. Now it is not going to grow at double digits and the growth I think will be more heavily weighted to the second half of the year. You know, growing off of the now $100 million portfolio. But we have the right sales team. We have the right and we have the right credit box now that we have tested out. To ensure that we grow in a positive way that we think can really impact and let it start punching above its weight again which is the reason why we are excited about the future of that business. Got it. Adam Kroll: Maybe 1 last 1 for me. Katie, I would be curious to hear how we should think about provisioning in 2027. Just given the likely step up in the reserve with the capital deal and just maybe longer term where you see the reserve kind of settling out? Kathryn Bailey: Yeah. I mean, I think to your point, I think the last couple quarters have been pretty nice from a provision perspective. I expect we get elevated from here. I think the coverage ratio, which is how I call it, the allowance to total loans, right now, we are at 1.11%,. I think we get, you know, to stay in that range, go up to maybe 1.2% over time. With capital coming on board. So that is where I would see us progress against citizens will not have any material impact to that ratio, but capital, when it comes on board, will help stabilize that. Got it. Adam Kroll: Thanks for taking my questions. No problem. Thanks. Thank you. Operator: The next question is from Brendan Nosal with Hovde Group. Please go ahead. Brendan Nosal: Hey, good morning folks. Thanks for taking the questions. Tyler J. Wilcox: No problem, Brendan. Brendan Nosal: Maybe starting off here, just kind of on prepping the balance sheet for year end. Are there any other security sales that need to take place to stay under $10 billion And I think you initially were contemplating like, $300 million. Tyler J. Wilcox: Well, as we articulated, with the Citizens acquisition closing here later this month, we will sell a majority of their portfolio at close or very near to close. As it relates to any more of our portfolio that we will sell, will just be dependent on how we transition through the remainder of the year and where we are from an asset size. You know, we might take another $2 to $3 million loss in the fourth quarter, but we will just continue to evaluate the market and evaluate our assets size as we proceed through the remainder of the fourth quarter. Yep. Okay. that is perfect. Brendan Nosal: Then maybe turning to the margin. You just narrow down kind of the NIM that you are expecting to see next quarter? there is a lot of moving pieces with kind of movement in the Peoples and Citizens security books and then their impact on both the core margin and, you know, fair value market accretion. Kathryn Bailey: Yes. So I think in the next quarter, we could see, going to project somewhere in the 8 to 10 basis point lift with the addition of Citizens, again, given the securities restructure we just talked about, their portfolio, and then just the deposit franchise that makes that organization very attractive. Okay. Alright. Awesome. Thanks, Katie. Brendan Nosal: Moving on a kind of related note, just thinking about your rate positioning. If I think back to last quarter, I think you folks said that each 25 basis point hike was 6 to 8 basis points of margin improvement. And that reads to me as being fairly asset sensitive. But it kind of sounds like now you are more neutral to only slightly asset sensitive. So I am wondering what changed over the past couple of months. Kathryn Bailey: Yeah. Think that number I mean, it ebbs and flows with each rate increase. It varies a little bit, but I think that 25 basis points now, I think we would quantify at about 5 basis points of benefit to us. And so I think it is I mean, we could debate whether that is significantly asset sensitive or slightly, but that is where the new number is. Yeah. Brendan Nosal: Yeah. Okay. That. that is fair and also helpful. Okay. Thanks for taking my questions. Tyler J. Wilcox: Thanks, Brendan. Operator: The next question is from Matthew Breese with Stephens. Please go ahead. Matthew Breese: Hey, good morning. Tyler J. Wilcox: Morning, Matthew. You know, just thinking about your loan growth guide for next year, could you give us some idea on what it contemplates for commercial real estate and leasing growth And if it does include positive growth in those segments, you know, what type of growth are you anticipating? Matthew Breese: Yes, I think overall commercial growth is about 5% or so, 1 of the main drivers. The leasing overall growth is probably about 6% to 7%. Tyler J. Wilcox: The kind of drag on the loan growth is going to be, you know, kinda coming from our expectations on the consumer book in a rising rate environment. You know, we are not seeing the refi business on the residential indirect has slowed down a bit, and so that is kind of the outlook on those pieces. I will say the growth as well in commercial. Probably a little bit more weighted to the C&I as opposed to the CRE. But still good CRE growth. Okay. So you do anticipate positive commercial real estate growth next year? We do. Okay. Matthew Breese: It is a bit of running on a treadmill as I noted because of the heavy weighting to the, you know, the sales and the payoffs in that space particularly. Yep. And then, Katie, just thinking about the 27 NIM guide, but including capital. You know, if I go back to the deal deck, I think it suggested a 5% NIM or higher. Could you talk about that in the context of the updated 27 NIM guide on the stand alone and whether or not that 5% still holds and what would put you at the upper versus the lower end. Kathryn Bailey: Well, I think with it not being in-- Capital not closing until probably. Let's say, early in the second quarter end of the first quarter, we will not have the benefit of that in the first quarter. So the full year guide with that, with capital in next year, I do not think we would get to the 5%. I said once they are in our numbers on a quarterly basis, I think we will approach 5-- be at 5 or slightly around the 5% rate. That we previously quoted. So for the full year, I do not think we will get to 5. In 2027. Right. But you will be in and around 5% with them and beyond. Fair? Correct. Correct. Okay. Matthew Breese: And I hate to pig pile on the $10 billion question. But you do have some excess cash at the end of the quarter as well. I am curious how you see kind of the cash and securities components playing out as you pull the levers and stay below $10 billion by year end? Kathryn Bailey: Yes. I think you will see our cash position decrease over time. I think some of that is just on balance sheet liquidity as we approach the end of the quarter. Given the securities portfolio is was smaller I think you will see it diminish especially as we kind of manage through year end. Okay. Matthew Breese: that is all I had. I will leave it there. Thank you. Thank you. Operator: The next question is from Tim Switzer with KBW. Please go ahead. Emily: This is Emily Lee stepping in for Tim Switzer. Thanks for taking my question. Tyler J. Wilcox: Sure. Good morning. Emily: So just to go back to the NIM, I was just wondering what was the exit margin in Q3. And how are deposit rates looking at the end of the quarter too? Kathryn Bailey: Exit monthly. The exit margin on the quarter was a little higher than where we reported for the full quarter. Accretion was a similar impact for the month. Of September as it was for the quarter. So I think we had a slight benefit call it, 5 to 8 basis points as we exited from where we reported for the full quarter. As it relates to deposits, I think we are starting to see some more competition in the market deposits, and I think we will continue to see that as this rate outlook plays out and as we start to see rates potentially move upward. And so we have been slowly following that trend, and we will continue to actively manage it as we have been in the past. And that will continue to likely come through our CD pricing product. Understood. Emily: Very helpful. And then what does guidance imply for expenses of capital once all the cost saves are achieved? So basically, it is the run rate for Q4 2027. Kathryn Bailey: So the full cost saves for capital will not be realized in 2027. They will not be realized until fully realized until 2028. Okay. Okay. Thank you. Emily: that is all for me. Thank you. Thank you. Operator: Again, if you have a question, please press 1. Next question is a follow-up from Brendan Nosal with Hovde Group. Please go ahead. Brendan Nosal: Hey. Hey, folks. 1 more for me on kind of expenses. I was trying to bridge the gap from you know, this quarter's $73 million in core expenses to the first quarter number at the higher end of your 80 million to $82 million range. And I am asking because it looks like Citizens is running like $4.5 million on costs So, you know, 73 and $4.5 million gets you to, like, 77.5. So kind of where does that other, you know, several million dollars kind of come from in the updated expense outlook for both 4Q 2026 and then 1Q 2027? Kathryn Bailey: A couple of things. I think Q3, we were a little lighter than we anticipated. I think some of that was just the timing that we will see move into the fourth quarter. And again, therefore, starting at the 73%, I think you are starting off a little light. A million, call it. For a round number I think then you have the annual increase in predominantly our largest expense item as it relates to salaries and benefits and I think we are seeing meaningful increase in benefit cost expectations for 27 over 26. I would say those are the big factors that are probably influencing that number higher than where you just quoted, Brendan. Brendan Nosal: Yep. Yep. Okay. that is that is helpful color. Thank you. Thank you. Operator: The next question is a follow-up from Nathan Race with Piper Sandler. Please go ahead. Adam Kroll: Just follow-up for me on the fee income guide for the fourth quarter. It looks like it takes a slight step down at the midpoint of $29 million. Even with the contribution from Citizens. So I guess I would be curious. Is that just from lower lease income or any color on the primary drivers there? Kathryn Bailey: Yeah. I think you had it. I think it is lease income. As we have quoted over time, that is a little bit of a volatile-- creates volatility in the fee income when it relates to lease income as we can have some end of term transactions that result in some gains that are reflected in that number on a quarterly basis. And I think you see that to the tune of a $1 million, $1.5 million in the third quarter. So I think that run rate was a little elevated versus the trend in Q3. And that is the biggest Got it. Variance, I would say. Got it. Thanks, Katie. Thank you. Operator: At this time, there are no further questions. Sir, do you have any closing remarks? Tyler J. Wilcox: Yes. I wanna thank everyone for joining our call this morning. Please remember that our earnings release and webcast of this call, including our earnings conference call presentation, will be archived at peoplesbancorp.com under the Investor Relations section. Thank you for your time, and have a great day. Operator: The conference has now concluded. Thank you for attending today's presentation. You may now disconnect. Before you buy stock in Peoples Bancorp, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Peoples Bancorp wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $376,696!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,333,920!* Now, it's worth noting Stock Advisor's total average return is 925% — a market-crushing outperformance compared to 212% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of October 20, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Peoples Bancorp (PEBO) Q3 2026 Earnings Call Transcript was originally published by The Motley Fool

MARIETTA, Ohio, Oct. 20, 2026 /PRNewswire/ -- Peoples Bancorp Inc. ("Peoples") (NASDAQ: PEBO) today announced results for the quarter ended September 30, 2026. Net income totaled $32.6 million for the third quarter of 2026, representing earnings per diluted common share of $0.91. In comparison, Peoples reported net income of $28.0 million, representing earnings per diluted common share of $0.78, for the second quarter of 2026 and net income of $29.5 million, representing earnings per diluted common share of $0.83, for the third quarter of 2025. Non-core items, which include one-time losses and acquisition-related expenses, negatively impacted earnings per diluted common share by $0.13 for the third quarter of 2026, $0.18 for the second quarter of 2026, and $0.07 for the third quarter of 2025. "We are very pleased with our strong performance for the third quarter of 2026, highlighted by continued improvement in our net interest margin, net interest income, our fee-based revenue streams, and overall profitability," said Tyler Wilcox, President and Chief Executive Officer. "Our results reflect disciplined execution, and we remain committed to maintaining our momentum through the fourth quarter to close the year in a strong financial position." Citizens Acquisition: On April 21, 2026, Peoples announced the signing of a definitive agreement and plan of merger pursuant to which Peoples will acquire Citizens National Corporation ("Citizens"), a bank holding company headquartered in Paintsville, Kentucky, and the parent company of Citizens Bank of Kentucky, Inc. ("Citizens Bank"), in a cash and stock transaction. Under the terms of the merger agreement, Citizens will merge with and into Peoples, and Citizens Bank will subsequently merge with and into Peoples' wholly owned subsidiary, Peoples Bank, in a transaction valued at approximately $76.6 million. As of September 30, 2026, Peoples recognized $0.9 million in acquisition-related expenses associated with this pending transaction. Capital Acquisition: On September 30, 2026, Peoples announced the signing of a definitive agreement and plan of merger pursuant to which Peoples will acquire Capital Bancorp, Inc. ("Capital"), a bank holding company headquartered in Rockville, Maryland, and the parent company of Capital Bank, N.A., in an all stock transaction. Under the terms of the merger agreement, Capital will merge with and into Peoples, and Capital Bank, N.A. will subsequently merge with and into Peoples Bank, in a transaction valued at approximately $728.1 million. As of September 30, 2026, Peoples recognized $1.0 million in acquisition-related expenses associated with this pending transaction. Quarterly Highlights: - Net interest margin for the third quarter of 2026 increased to 4.31% when compared to 4.23% for the linked quarter driven by increased investment and loan yields. - Net interest income increased $1.1 million compared to the linked quarter driven by higher loan income. - Provision for credit losses decreased $1.1 million when compared to the linked quarter. - The reduction in the provision for credit losses was due to declines in reserves for individually-analyzed loans and leases, coupled with updates to prepayment, curtailment, and funding rates, partially offset by higher net charge-offs. - Period-end total loan and lease balances at September 30, 2026, increased $19.2 million, or 1% annualized, when compared to the linked quarter. - The loan growth was largely due to increases in construction loans, commercial and industrial loans, and home equity lines of credit, partially offset by decreases in other commercial real estate loans, residential real estate loans, and leases. - Total non-interest income, excluding net gains and losses, increased $1.5 million, or 5%, for the third quarter of 2026 compared to the linked quarter. - The growth was due to increases in lease income, driven by gains on terminated leases, other non-interest income, driven by swap fee income, deposit account service charges, trust and investment income, and bank owned life insurance income. - Total period-end core deposits, which excludes brokered deposits, increased $19.2 million compared to the linked quarter. - The increase was attributable to increases in interest-bearing demand accounts and money market deposit accounts, partially offset by decreases in retail certificates of deposit and non-interest bearing deposits. Net Interest Income Net interest income was $93.8 million for the third quarter of 2026, which increased by $1.1 million compared to the linked quarter. Net interest margin was 4.31% for the third quarter of 2026, compared to 4.23% for the linked quarter. The increase in net interest income was driven by higher loan income, while the increase in net interest margin was driven by higher investment and loan yields. Net interest income for the third quarter of 2026 increased $2.5 million, or 3%, compared to the third quarter of 2025. Net interest margin increased 15 basis points when compared to the third quarter of 2025. The increases in net interest income and net interest margin were primarily driven by lower deposit and borrowing costs compared to the third quarter of 2025. Accretion income, net of amortization expense, from acquisitions was $1.0 million for the third quarter of 2026, $1.1 million for the linked quarter and $1.7 million for the third quarter of 2025, which added four basis points, five basis points and eight basis points, respectively, to net interest margin. The decrease in accretion income for the third quarter of 2026 when compared to the linked quarter and third quarter of 2025 was driven by less accretion income recognized in the current period from the 2023 merger with Limestone Bancorp, Inc. For the first nine months of 2026, net interest income increased $12.8 million compared to the same period of 2025, while net interest margin increased eight basis points to 4.23%. The increases in net interest income and net interest margin were driven by lower deposit costs compared to the first nine months of 2025. Accretion income, net of amortization expense, was $3.4 million for the first nine months of 2026, compared to $7.8 million of accretion income recognized in the first nine months of 2025. Accretion income contributed five basis points and 12 basis points to net interest margin in the first nine months of 2026 and 2025, respectively. Provision for Credit Losses: The provision for credit losses was $3.6 million for the third quarter of 2026, compared to $4.7 million for the linked quarter, and $7.3 million for the third quarter of 2025. The provision for credit losses for the third quarter of 2026 was driven by net charge-offs, partially offset by a decrease in reserves for individually-analyzed loans and leases and updates to prepayment, curtailment, and funding rates. The provision for credit losses for the linked quarter was primarily driven by net charge-offs and an increase in reserves for individually analyzed loans and leases, partially offset by a reduction of balances within higher loss rate segments. The provision for credit losses for the third quarter of 2025 was primarily driven by (i) net charge-offs, (ii) loan growth, and (iii) a slight deterioration in the economic forecasts used within the current expected credit loss ("CECL") model, partially offset by reductions in reserves for individually analyzed loans and leases. The provision for credit losses during the first nine months of 2026 was $18.0 million and was primarily driven by net charge-offs and a deterioration of macroeconomic conditions used within the CECL model, partially offset by updates to prepayment, curtailment, and funding rates, and a reduction in balances of loans and leases within higher loss rate segments. The provision for credit losses for the same period of 2025 was $34.1 million and was mainly a result of (i) net charge-offs, (ii) an increase in reserves for individually analyzed loans and leases, (iii) an increase in reserves for leases originated by the North Star Leasing division, (iv) deterioration in the economic forecasts used within the CECL model, and (v) loan growth. The provision for credit losses recorded represents the amount needed to maintain the appropriate level of the allowance for credit losses based on management's quarterly estimates. The provision for credit losses negatively impacted earnings per diluted common share by $0.08 for the third quarter of 2026, $0.10 for the second quarter of 2026, and $0.16 for the third quarter of 2025. The provision for credit losses negatively impacted earnings per diluted common share by $0.39 and $0.75 for the first nine months of 2026 and 2025, respectively. For additional information on net charge-offs, credit trends and the allowance for credit losses, see the "Asset Quality" section below. Net Gains and Losses: Net gains and losses include gains and losses on investment securities, asset disposals and other transactions, which are included in total non-interest income on the Consolidated Statements of Income. The net loss for the third quarter of 2026 was $4.8 million, compared to a net loss of $8.6 million for the linked quarter, and a net loss of $3.1 million for the third quarter of 2025. The net loss for each of the third and second quarter of 2026 was driven by the sale of $58.5 million of available-for-sale securities at a net loss of $4.5 million and the sale of $135.2 million of available-for-sale investment securities at a net loss of $8.2 million, respectively, as Peoples continued to manage its balance sheet under $10 billion in assets ahead of the Citizens merger. The net loss for the third quarter of 2025 was driven by a $2.7 million net loss on the sale of lower yielding available-for-sale securities. The net losses realized during the first nine months of 2026 and 2025 were $13.9 million and $3.7 million, respectively. The net loss for the first nine months of 2026 was driven by the aforementioned investment portfolio restructures during the second and third quarters. The net loss for the first nine months of 2025 was primarily driven by the $2.7 million net loss on the sale of lower yielding available-for-sale investment securities. Total Non-interest Income, Excluding Net Gains and Losses: Total non-interest income, excluding net gains and losses, for the third quarter of 2026 increased $1.5 million compared to the linked quarter. The increase in non-interest income, excluding net gains and losses, was primarily impacted by increases of $0.7 million in lease income, driven by an increase in gains on terminated leases, $0.2 million in other non-interest income, driven by swap fee income, $0.2 million in deposit account service charges, and $0.2 million in trust and investment income, driven by higher assets under management. Total non-interest income, excluding net gains and losses, for the third quarter of 2026 was 25% of total revenue (defined as net interest income plus total non-interest income excluding net gains and losses), compared to 24% for the linked quarter. Compared to the third quarter of 2025, total non-interest income, excluding net gains and losses, increased $3.6 million due to increases of $2.1 million in lease income, driven by higher operating lease income and gains on terminated leases, $0.8 million in trust and investment income, driven by an increase in assets under administration and management, $0.4 million in deposit account services charges, and $0.3 million in mortgage banking income, partially offset by a decrease of $0.2 million in insurance income. During the first nine months of 2026, total non-interest income, excluding gains and losses, increased $6.6 million, or 8%, when compared to the same period of 2025. The increase was primarily due to increases of $3.9 million in lease income, driven by operating lease income, $2.0 million in trust and investment income, driven by an increase in assets under administration and management, $1.1 million in deposit account service charges, and $0.7 million in mortgage banking income, partially offset by decreases of $0.9 million in both insurance income and other non-interest income, driven by lower swap fee income. Total Non-interest Expense: Total non-interest expense increased $1.8 million for the third quarter of 2026, compared to the linked quarter. The increase in total non-interest expense was primarily due to increases of $0.7 million in professional fees, driven by acquisition-related expenses, $0.5 million in salaries and employee benefits costs, driven by an increase in sales-based incentives, $0.4 million in marketing expense, due to a vendor incentive received in the second quarter of 2026, and $0.2 million in operating lease expense, which were partially offset by a decrease of $0.1 million in travel and entertainment expense, driven by timing of travel. Compared to the third quarter of 2025, total non-interest expense increased $4.6 million. The increase in total non-interest expense was primarily driven by increases of $1.9 million in professional fees, driven by acquisition-related expenses, $1.9 million in salaries and benefit costs due to annual merit increases coupled with higher sales levels and overall company performance measures used in calculating incentive awards, $1.0 million in operating lease expense, $0.5 million in data processing and software expense due to costs associated with recent technology projects, partially offset by a decrease of $0.5 million in amortization of other intangible assets, driven by decreases in amortization on core deposits and customer relationship intangibles. For the first nine months of 2026, total non-interest expense increased $7.9 million, when compared to the same period of 2025. This increase was primarily driven by increases of $3.0 million in salaries and employee benefit costs due to annual merit increases and an increase in sales incentives, $2.5 million in operating lease expense, driven by the increase in operating lease volume, $2.0 million in professional fees, driven by acquisition-related expenses, and $1.6 million in data processing and software expenses driven by recent technology projects, partially offset by a decrease of $1.5 million in amortization of other intangible assets, due to decreases in amortization on core deposits and customer relationship intangibles. The table below summarizes the amount of acquisition-related expenses for each line item that is a component of non-interest expense. Acquisition-related expenses are considered a non-core non-interest expense by Peoples. This information is used by Peoples to provide information useful to investors in understanding Peoples' operating performance and trends. | Three Months Ended | | Nine Months Ended | September 30, | | June 30, | | September 30, | | September 30, | 2026 | | 2026 | | 2025 | | 2026 | | 2025 (Dollars in thousands) | (Unaudited) | | (Unaudited) | | (Unaudited) | | (Unaudited) | | (Unaudited) Non-interest expense: | | | | | | | | | Salaries and employee benefit costs | 40,560 | | 40,012 | | 38,698 | | $ 120,407 | | $ 117,412 Data processing and software expense | 7,890 | | 7,850 | | 7,356 | | 23,276 | | 21,717 Net occupancy and equipment expense | 5,806 | | 5,765 | | 5,896 | | 17,795 | | 17,198 Professional fees | 4,743 | | 4,018 | | 2,798 | | 11,514 | | 9,495 Electronic banking expense | 2,337 | | 2,225 | | 2,161 | | 6,643 | | 6,204 Operating lease expense | 2,010 | | 1,797 | | 1,039 | | 5,611 | | 3,077 Amortization of other intangible assets | 1,697 | | 1,697 | | 2,211 | | 5,091 | | 6,635 Other loan expenses | 1,309 | | 1,278 | | 1,385 | | 3,710 | | 3,717 FDIC insurance premiums | 1,260 | | 1,370 | | 1,284 | | 4,040 | | 3,786 Marketing expense | 1,004 | | 604 | | 1,001 | | 2,494 | | 2,622 Franchise tax expense | 956 | | 972 | | 916 | | 2,932 | | 2,523 Communication expense | 598 | | 605 | | 664 | | 1,792 | | 2,110 Travel and entertainment expense | 595 | | 726 | | 796 | | 1,904 | | 2,009 Other non-interest expense | 3,775 | | 3,840 | | 3,689 | | 11,725 | | 12,538 Total non-interest expense | 74,540 | | 72,759 | | 69,894 | | 218,934 | | 211,043 Acquisition-related non-interest expense: | | | | | | Professional fees | 1,442 | | 338 | | — | | 1,795 | | — Marketing expense | 32 | | 52 | | — | | 84 | | — Travel and entertainment expense | 22 | | 10 | | — | | 32 | | — Other non-interest expense | 2 | | 10 | | — | | 12 | | — Net occupancy and equipment expense | — | | — | | — | | 1 | | — Total acquisition-related non-interest expense | 1,498 | | 410 | | — | | 1,924 | | — Non-interest expense excluding acquisition-related expense: | | | | | | Salaries and employee benefit costs | 40,560 | | 40,012 | | 38,698 | | 120,407 | | 117,412 Data processing and software expense | 7,890 | | 7,850 | | 7,356 | | 23,276 | | 21,717 Net occupancy and equipment expense | 5,806 | | 5,765 | | 5,896 | | 17,794 | | 17,198 Professional fees | 3,301 | | 3,680 | | 2,798 | | 9,719 | | 9,495 Electronic banking expense | 2,337 | | 2,225 | | 2,161 | | 6,643 | | 6,204 Operating lease expense | 2,010 | | 1,797 | | 1,039 | | 5,611 | | 3,077 Amortization of other intangible assets | 1,697 | | 1,697 | | 2,211 | | 5,091 | | 6,635 Other loan expenses | 1,309 | | 1,278 | | 1,385 | | 3,710 | | 3,717 FDIC insurance premiums | 1,260 | | 1,370 | | 1,284 | | 4,040 | | 3,786 Marketing expense | 972 | | 552 | | 1,001 | | 2,410 | | 2,622 Franchise tax expense | 956 | | 972 | | 916 | | 2,932 | | 2,523 Communication expense | 598 | | 605 | | 664 | | 1,792 | | 2,110 Travel and entertainment expense | 573 | | 716 | | 796 | | 1,872 | | 2,009 Other non-interest expense | 3,773 | | 3,830 | | 3,689 | | 11,713 | | 12,538 Total non-interest expense excluding acquisition-related expense | 73,042 | | 72,349 | | 69,894 | | $ 217,010 | | $ 211,043 The efficiency ratio for the third quarter of 2026 was 58.5%, compared to 58.3% for the linked quarter and 57.1% for the third quarter of 2025. The efficiency ratio increased slightly compared to the linked quarter mainly as the result of higher non-interest expense, largely driven by acquisition-related expenses. The efficiency ratio for the first nine months of 2026 was 58.5%, compared to 59.0% for the same period of 2025. The efficiency ratio improved compared to the same period of 2025 due to higher revenue. The efficiency ratio adjusted for non-core items was 57.3% and 57.9% for the third and second quarters of 2026, respectively. Peoples continues to focus on controlling expenses, while recognizing necessary costs in order to continue growing the business. Income Tax Expense: Peoples recorded income tax expense of $8.8 million with an effective tax rate of 21.2% for the third quarter of 2026, compared to income tax expense of $7.7 million with an effective tax rate of 21.6% for the linked quarter and income tax expense of $8.5 million with an effective tax rate of 22.4% for the third quarter of 2025. Income tax expense for each of the first nine months of 2026 and 2025 was $24.8 million and $21.8 million, respectively, with an associated effective tax rate of 21.7% and 22.5%, respectively. The increase in income tax expense when compared to the linked quarter was driven by higher pretax income in the third quarter of 2026 and a $0.5 million benefit relating to tax credits purchased in the second quarter of 2026. The increase in income tax expense when compared to the nine month period ended September 30, 2025, was driven by higher pretax income. Investment Securities and Liquidity: Peoples' investment portfolio primarily consists of available-for-sale investment securities reported at fair value and held-to-maturity investment securities reported at amortized cost. The available-for-sale investment securities balance at September 30, 2026, decreased $68.9 million when compared to at June 30, 2026, decreased $179.2 million when compared to at December 31, 2025, and decreased $171.8 million when compared to at September 30, 2025. The decrease in available-for-sale investment securities compared to all prior periods was driven by the aforementioned sales of available-for-sale investment securities. The unrealized losses, net of tax, on available-for-sale investment securities recognized within accumulated other comprehensive loss were $99.8 million at September 30, 2026, $71.2 million at June 30, 2026, $71.0 million at December 31, 2025, and $90.9 million at September 30, 2025. The increase in accumulated other comprehensive loss compared to the linked quarter was the result of the changes in the market value of available-for-sale investment securities during the period. At September 30, 2026, Peoples' investment securities represented approximately 18.3% of total assets, compared to 19.1% at June 30, 2026, and 20.5% at both December 31, 2025 and September 30, 2025. As of the third quarter of 2026, the decrease in the percentage of investment securities was mainly due to the aforementioned available-for-sale investment restructures. The held-to-maturity investment securities balance at September 30, 2026, increased $10.7 million when compared to at June 30, 2026, decreased $44.8 million when compared to at December 31, 2025, and decreased $53.7 million when compared to at September 30, 2025. The increase when compared to the linked quarter was driven by purchases of higher yielding, longer duration securities for pledging purposes as market rates impacted the market value of pledged securities during the quarter. The decrease when compared to December 31, 2025 and September 30, 2025 was driven by prepayments and maturities of collateralized mortgage obligations. The effective durations of the available-for-sale investment securities and the held-to-maturity investment securities as of September 30, 2026, were approximately 6.15 and 7.46 years, respectively. The duration of Peoples' investments is managed as part of Peoples' Asset Liability Management program and has the potential to impact both liquidity and capital, as mismatches in duration may require a liquidation of investment securities at market prices to meet funding needs. These assets are a component of Peoples' liquidity profile. Peoples maintains a number of liquid and liquefiable assets, borrowing capacity, and other sources of liquidity to ensure the availability of funds. At September 30, 2026, Peoples had liquid and liquefiable assets totaling $667.9 million, which included (i) cash and cash equivalents, (ii) unpledged government and agency investment securities and (iii) unpledged non-agency investment securities that could be liquidated. At September 30, 2026, Peoples had a total borrowing capacity of $654.3 million available through the Federal Home Loan Bank ("FHLB"), the Federal Reserve Bank ("FRB"), and federal funds. Additionally, at September 30, 2026, Peoples had contingent sources of liquidity totaling $3.8 billion. Contingent sources of liquidity are generally comprised of borrowing capacity at the FHLB and FRB, unpledged securities, liquifiable securities, and available capacity from wholesale funding sources. Cash and cash equivalents increased $111.8 million when compared to December 31, 2025, as the level of cash fluctuates given Peoples' total liquidity position. Loans and Leases: The period-end total loan and lease balances at September 30, 2026, increased $19.2 million, or 1% annualized, compared to at June 30, 2026. The increase in loans was driven by increases of $40.4 million in construction loans, $34.3 million in commercial and industrial loans, and $10.2 million in home equity lines of credit, partially offset by decreases of $38.4 million in other commercial real estate loans, $13.8 million in residential real estate loans, and $11.6 million in leases. Total loans and leases increased by $83.9 million, or 1%, when compared to at December 31, 2025. The loan growth was driven by increases of $188.4 million in commercial and industrial loans, $33.8 million in construction loans, and $30.3 million in home equity lines of credit, partially offset by decreases of $119.2 million in other commercial real estate loans, $29.1 million in residential real estate loans, and $23.3 million in leases. The period-end total loan and lease balances at September 30, 2026, increased $112.1 million, or 2%, compared to at September 30, 2025, driven by increases of $234.6 million in commercial and industrial loans and $73.7 million in construction loans, partially offset by decreases of $124.7 million in other commercial real estate loans, $43.1 million in residential real estate loans, and $40.4 million in leases. Quarterly average total loan balances increased $35.0 million compared to the linked quarter and $175.2 million when compared to the prior year quarter. The increase in average total loan balances when compared to the linked quarter was primarily the result of increases of $42.7 million in commercial and industrial loans, $28.7 million in construction loans, and $23.4 million in premium finance loans, partially offset by decreases of $46.7 million and $11.2 million in other commercial real estate loans and residential real estate loans, respectively. The increase in average total loans when compared to the prior year quarter was driven by increases of $266.7 million in commercial and industrial loans and $34.6 million in home equity lines of credit, partially offset by decreases of $58.0 million, $44.3 million, and $22.2 million in residential real estate loans, leases, and construction loans, respectively. For the first nine months of 2026, the average total loan balances increased $294.9 million compared to the first nine months of 2025. The increase in average total loan balances was primarily the result of increases of $270.9 million in commercial and industrial loans, $96.2 million in other commercial real estate loans, and $28.7 million in home equity lines of credit, partially offset by decreases of $38.4 million and $32.6 million in leases and construction loans, respectively. Asset Quality: Key asset quality metrics were stable during the third quarter of 2026. Delinquency trends improved as loans considered current comprised 99.2%, 99.1%, and 99.0% of the loan portfolio at September 30, 2026, at June 30, 2026, and at September 30, 2025, respectively. Total nonperforming assets at September 30, 2026, decreased $4.1 million, or 10%, compared to at June 30, 2026, and decreased $7.8 million, or 18%, compared to at September 30, 2025. The decrease in nonperforming assets compared to at June 30, 2026, was driven by reductions in nonaccrual leases of $2.0 million, other commercial real estate loans of $1.8 million, and commercial and industrial loans of $1.3 million, partially offset by an increase in residential real estate loans 90+ days past due and accruing of $1.2 million. Compared to at September 30, 2025, nonperforming assets decreased because of the sale of an OREO property in the fourth quarter of 2025, coupled with reductions in nonaccrual leases, partially offset by increases in other commercial real estate loans 90+ days past due and accruing. Nonperforming assets as a percent of total loans and OREO was 0.54% at September 30, 2026, compared to 0.60% at June 30, 2026, and 0.66% at September 30, 2025. Criticized loans, which are those categorized as special mention, substandard, doubtful or loss decreased $17.7 million, or 6%, compared to at June 30, 2026, and decreased $12.3 million, or 5%, compared to at September 30, 2025. As a percent of total loans, criticized loans were 3.74% at September 30, 2026, compared to 4.01% at June 30, 2026, and 3.99% at September 30, 2025. The decrease in the amount of criticized loans compared to at June 30, 2026, and at September 30, 2025, was driven by loan upgrades and paydowns. Classified loans, which are those categorized as substandard, doubtful or loss increased $30.1 million, or 21%, compared to at June 30, 2026, and increased $12.3 million, or 8%, compared to at September 30, 2025. As a percent of total loans, classified loans were 2.50% at September 30, 2026, compared to 2.06% at June 30, 2026, and 2.36% at September 30, 2025. The increase in classified loans compared to at June 30, 2026, and at September 30, 2025, was primarily driven by loan downgrades. Annualized net charge-offs were 0.35% of average total loans for the third quarter of 2026, compared to 0.31% for the linked quarter, and 0.41% for the third quarter of 2025. Compared to the linked quarter, net charge-offs increased because of increased net charge-offs in commercial and industrial loans associated with one customer relationship. Compared to the prior year third quarter, net charge-offs decreased driven by a reduction in net charge-offs by North Star Leasing, partially offset by increases in net charge-offs of other commercial real estate loans and commercial and industrial loans. At September 30, 2026, the allowance for credit losses decreased $2.4 million when compared to at June 30, 2026, and increased $0.9 million when compared to at September 30, 2025. The ratio of the allowance for credit losses as a percent of total loans was 1.11% at September 30, 2026, compared to 1.14% at June 30, 2026, and 1.11% at September 30, 2025. The ratio of allowance for credit losses as a percentage of non-performing loans was 206.83% at September 30, 2026, compared to 190.78% at June 30, 2026, and 193.01% at September 30, 2025. Deposits: As of September 30, 2026, period-end core deposits, which exclude brokered deposits, increased $19.2 million compared to at June 30, 2026. The increase in core deposits was attributable to increases of $51.9 million in interest-bearing demand accounts and $46.4 million in money market deposit accounts, partially offset by decreases of $44.4 million in retail certificates of deposit and $33.6 million in non-interest bearing deposits. Compared to at December 31, 2025, period-end core deposit balances increased $55.8 million. The increase was primarily driven by increases of $96.6 million in money market deposit accounts, $54.5 million in interest-bearing demand deposits, $26.4 million in savings accounts, and $15.6 million in governmental deposits, partially offset by a decrease of $152.1 million in retail certificates of deposits. Compared to at September 30, 2025, period-end core deposit balances increased $34.6 million. The increase in core deposits was primarily driven by increases of $93.7 million in money market deposit accounts, $78.3 million in interest-bearing demand accounts, $29.6 million in savings accounts, and $24.1 million in non-interest bearing deposits, partially offset by a decrease of $177.0 million in retail certificates of deposit. The total deposit balances attributable to retail deposits and commercial deposits were 78% and 22%, respectively, at both September 30, 2026 and June 30, 2026, and 77% and 23%, respectively, at September 30, 2025. Uninsured deposits were 27% of total deposits for each period ending at September 30, 2026, at June 30, 2026, and at September 30, 2025. Uninsured amounts were based on the portion of customer account balances that exceeded the FDIC limit of $250,000. Peoples pledges investment securities against certain governmental deposit accounts, which collateralized $574.8 million, or 28%, $595.7 million, or 30%, and $660.0 million, or 32%, of the uninsured deposit balances at September 30, 2026, at June 30, 2026, and at September 30, 2025, respectively. Average deposit balances during the third quarter of 2026 decreased $65.7 million when compared to the linked quarter and decreased $232.4 million when compared to the third quarter of 2025. The decrease over the linked quarter was driven by decreases of $66.0 million in governmental deposit accounts, $60.8 million in retail certificates of deposit, and $24.8 million in interest-bearing demand accounts, partially offset by increases of $59.0 million and $23.1 million in brokered deposits and money market deposit accounts, respectively. The decrease when compared to the third quarter of 2025 was driven by decreases of $186.7 million in brokered deposits and $150.9 million in retail certificates of deposit, partially offset by increases of $66.2 million, $38.8 million, and $26.3 million in non-interest bearing deposits, money market deposit accounts, and savings accounts, respectively. Total demand deposit accounts comprised 36% of total deposits at September 30, 2026, 36% at June 30, 2026, and 33% at September 30, 2025. For the first nine months of 2026, average deposit balances decreased $113.8 million when compared to the first nine months of 2025. The decrease was primarily a result of decreases of $176.1 million in brokered deposits and $66.5 million in retail certificates of deposits, partially offset by increases of $85.4 million, $27.6 million, and $26.2 million in non-interest bearing deposits, money market deposit accounts, and savings accounts, respectively. Stockholders' Equity: Total stockholders' equity at September 30, 2026, decreased $8.6 million, or 1%, compared to at June 30, 2026. This change was primarily driven by an increase of $28.5 million in accumulated other comprehensive loss and dividends paid of $15.1 million during the third quarter of 2026, partially offset by net income of $32.6 million. The increase in accumulated other comprehensive loss was the result of the changes in the market value of available-for-sale investment securities during the period. Total stockholders' equity at September 30, 2026 increased $21.3 million, or 2%, when compared to at December 31, 2025. This change was driven by net income of $89.6 million, partially offset by an increase of $28.8 million in accumulated other comprehensive loss during the quarter and dividends paid of $44.9 million. Total stockholders' equity at September 30, 2026, increased $45.1 million, or 4%, compared to at September 30, 2025, which was due to net income of $121.3 million for the last twelve months, partially offset by an increase in other comprehensive loss of $21.8 million and dividends paid of $59.5 million. Peoples Bancorp Inc. ("Peoples", Nasdaq: PEBO) is a diversified financial services holding company and makes available a complete line of banking, trust and investment, insurance and specialty financing solutions through its subsidiaries. Headquartered in Marietta, Ohio, since 1902, Peoples has established a heritage of financial stability, growth and community impact. Peoples had $9.7 billion in total assets as of September 30, 2026, and 144 locations, including 127 full-service bank branches in Ohio, West Virginia, Kentucky, Virginia, Washington D.C., and Maryland. Peoples' vision is to be the Best Community Bank in America. Peoples is a member of the Russell 3000 index of United States ("U.S.") publicly-traded companies. Peoples offers services through Peoples Bank (which includes the divisions of Peoples Investment Services, Peoples Premium Finance, Peoples Life Premium Finance, and North Star Leasing), Peoples Insurance Agency, LLC, and Vantage Financial, LLC. Conference Call to Discuss Earnings: Peoples will conduct a facilitated conference call to discuss third quarter 2026 results of operations on October 20, 2026, at 11:00 a.m., Eastern Time, with members of Peoples' executive management participating. Analysts, media and individual investors are invited to participate in the conference call by calling (866) 890-9285. A simultaneous webcast of the conference call audio and earnings conference call presentation will be available online via the "Investor Relations" section of Peoples' website, www.peoplesbancorp.com. Participants are encouraged to call or sign in at least 15 minutes prior to the scheduled conference call time to ensure participation and, if required, to download and install the necessary software. A replay of the call will be available on Peoples' website in the "Investor Relations" section for one year. Use of Non-US GAAP Financial Measures: This news release contains financial information and performance measures determined by methods other than those in accordance with accounting principles generally accepted in the United States of America ("US GAAP"). Management uses these "non-US GAAP" financial measures in its analysis of Peoples' performance and the efficiency of its operations. Management believes that these non-US GAAP financial measures provide a greater understanding of ongoing operations and enhance comparability of results with prior periods and peers. These disclosures should not be viewed as substitutes for financial measures determined in accordance with US GAAP, nor are they necessarily comparable to non-US GAAP performance measures that may be presented by other companies. Below is a listing of the non-US GAAP financial measures used in this news release: - Core non-interest expense is a non-US GAAP financial measure since it excludes the impact of acquisition-related expenses. - The efficiency ratio is calculated as total non-interest expense (less amortization of other intangible assets) as a percentage of fully tax-equivalent net interest income plus total non-interest income, excluding net gains and losses. This ratio is a non-US GAAP financial measure since it excludes amortization of other intangible assets and all gains and losses included in earnings, and uses fully tax-equivalent net interest income. - The efficiency ratio adjusted for non-core items is calculated as core non-interest expense (less amortization of other intangible assets) as a percentage of fully tax-equivalent net interest income plus total non-interest income, excluding net gains and losses. This ratio is a non-US GAAP financial measure since it excludes the impact of acquisition-related expenses and the amortization of other intangible assets and all gains and losses included in earnings, and uses fully tax-equivalent net interest income. - Tangible assets, tangible equity, the tangible equity to tangible assets ratio, and tangible book value per common share are non-US GAAP financial measures since they exclude the impact of goodwill and other intangible assets acquired through acquisitions on both total stockholders' equity and total assets. - Pre-provision net revenue is defined as net interest income plus total non-interest income, excluding net gains and losses, minus total non-interest expense. This measure is a non-US GAAP financial measure since it excludes the provision for (recovery of) credit losses and all gains and losses included in net income. - Return on average assets adjusted for non-core items is calculated as annualized core net income (less the after-tax impact of all gains and losses, and acquisition-related expenses) divided by average assets. This measure is a non-US GAAP financial measure since it excludes the after-tax impact of all gains and losses, and acquisition-related expenses. - Return on average tangible equity is calculated as annualized net income (less the after-tax impact of amortization of other intangible assets) divided by average tangible equity. This measure is a non-US GAAP financial measure since it excludes the after-tax impact of amortization of other intangible assets from net income and the impact of average goodwill and other average intangible assets acquired through acquisitions on average stockholders' equity. A reconciliation of these non-US GAAP financial measures to the most directly comparable US GAAP financial measures is included at the end of this news release under the caption of "Non-US GAAP Financial Measures (Unaudited)." Safe Harbor Statement: Certain statements made in this news release regarding Peoples' financial condition, results of operations, plans, objectives, future performance and business 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 are identified by the fact they are not historical facts and include words such as "anticipate," "estimate," "may," "feel," "expect," "believe," "plan," "will," "will likely," "would," "should," "could," "project," "goal," "target," "potential," "seek," "intend," "continue," "remain," and similar expressions. These forward-looking statements reflect management's current expectations based on all information available to management and its knowledge of Peoples' business and operations. Additionally, Peoples' financial condition, results of operations, plans, objectives, future performance and business are subject to risks and uncertainties that may cause actual results to differ materially. These factors include, but are not limited to: (1) | the effects of interest rate policies, including any changes to such policies that may result from potential changes in the composition of the Federal Reserve Board, changes in the interest rate environment due to economic conditions and/or the fiscal and monetary policy measures undertaken by the U.S. government and the Federal Reserve Board, including changes in the Federal Funds Target Rate, in response to such economic conditions, which may adversely impact interest rates, the interest rate yield curve, interest margins, loan demand and interest rate sensitivity; | (2) | the effects of inflationary pressures on borrowers' liquidity and ability to repay; | (3) | the success, impact, and timing of the implementation of Peoples' business strategies and Peoples' ability to manage strategic initiatives, including the interest rate policies of the Federal Reserve Board, the completion and successful integration of acquisitions, including the pending mergers with Citizens National Corporation (the "Citizens merger") and Capital Bancorp, Inc (the "Capital merger"), and the expansion of commercial and consumer lending activities; | (4) | competitive pressures among financial institutions, or from non-financial institutions, which may increase significantly, including product and pricing pressures, which can in turn impact Peoples' credit spreads, changes to third-party relationships and revenues, changes in the manner of providing services, customer acquisition and retention pressures, and Peoples' ability to attract, develop and retain qualified professionals; | (5) | uncertainty regarding the nature, timing, cost, and effect of legislative or regulatory changes or actions, or deposit insurance premium levels, promulgated and to be promulgated by governmental and regulatory agencies, including the Ohio Division of Financial Institutions, the Federal Deposit Insurance Corporation, the Federal Reserve Board and the Consumer Financial Protection Bureau, which may subject Peoples, its subsidiaries, or acquired companies to a variety of new and more stringent legal and regulatory requirements; | (6) | the effects of easing restrictions on participants in the financial services industry; | (7) | current and future local, regional, national and international economic conditions (including the impact of persistent inflation, supply chain issues or labor shortages, supply-demand imbalances affecting local real estate prices, high unemployment rates in the local or regional economies in which Peoples operates and/or the U.S. economy generally, a future U.S. government shutdown, an increasing federal government budget deficit, the failure of the federal government to raise the federal debt ceiling, potential or imposed tariffs, a U.S. withdrawal from or significant renegotiation of trade agreements, trade wars and other changes in trade regulations, and changes in the relationship of the U.S. and U.S. global trading partners), and changes in the federal, state, and local governmental policy and the impact these conditions may have on Peoples, Peoples' customers and Peoples' counterparties, and Peoples' assessment of the impact, which may be different than anticipated; | (8) | Peoples may issue equity securities in connection with future acquisitions, which could cause ownership and economic dilution to Peoples' current shareholders; | (9) | changes in prepayment speeds, loan originations, levels of nonperforming assets, delinquent loans, charge-offs, and customer and other counterparties' performance and creditworthiness generally, which may be less favorable than expected in light of recent inflationary pressures and continued elevated interest rates, and may adversely impact the amount of interest income generated; | (10) | Peoples may have more credit risk and higher credit losses to the extent there are loan concentrations by location or industry of borrowers or collateral; | (11) | future credit quality and performance, including expectations regarding future credit losses and the allowance for credit losses; | (12) | changes in accounting standards, policies, estimates or procedures may adversely affect Peoples' reported financial condition or results of operations; | (13) | the impact of assumptions, estimates and inputs used within models, which may vary materially from actual outcomes, including under the CECL model; | (14) | adverse changes in the conditions and trends in the financial markets, including inflationary pressures and the impacts of potential or imposed tariffs on markets, which may adversely affect the fair value of securities within Peoples' investment portfolio, the interest rate sensitivity of Peoples' consolidated balance sheet, and the income generated by Peoples' trust and investment activities; | (15) | the volatility from quarter to quarter of mortgage banking income, whether due to interest rates, demand, the fair value of mortgage loans, or other factors; | (16) | Peoples' ability to receive dividends from Peoples' subsidiaries; | (17) | Peoples' ability to maintain required capital levels and adequate sources of funding and liquidity; | (18) | the impact of larger or similar-sized financial institutions encountering problems, which may adversely affect the banking industry and/or Peoples' business generation and retention, funding and liquidity, including Peoples' continued ability to grow deposits or maintain adequate deposit levels, and may further result in potential increased regulatory requirements, increased reputational risk and potential impacts to macroeconomic conditions; | (19) | Peoples' ability to secure confidential information and avoid misappropriation of confidential information in connection with the delivery of products and services through the use of computer systems and telecommunications networks, including those of Peoples' third-party vendors and other service providers, which may prove inadequate, and could adversely affect customer confidence in Peoples and/or result in Peoples incurring a financial loss; | (20) | Peoples' ability to anticipate and respond to technological changes, and Peoples' reliance on, and the potential failure of, a number of third-party vendors to perform as expected, including Peoples' primary core banking system provider, which can impact Peoples' ability to respond to customer needs and meet competitive demands; | (21) | operational issues stemming from and/or capital spending necessitated by the potential need to adapt to industry changes in information technology systems on which Peoples and Peoples' subsidiaries are highly dependent; | (22) | changes in consumer spending, borrowing and saving habits, whether due to changes in retail distribution strategies, consumer preferences and behavior, changes in business and economic conditions, legislative or regulatory initiatives, or other factors, which may be different than anticipated; | (23) | the adequacy of Peoples' internal controls and risk management program in the event of changes in strategic, reputational, market, economic, operational, cybersecurity, compliance, legal, asset/liability repricing, liquidity, credit and interest rate risks associated with Peoples' business; | (24) | the impact on Peoples' businesses, personnel, facilities or systems of losses related to acts of fraud, theft, misappropriation or violence; | (25) | the impact on Peoples' businesses, as well as on the risks described above, of various domestic or international widespread natural or other disasters including severe weather events, pandemics, cybersecurity attacks, system failures, civil unrest, military or terrorist activities or international conflicts, including Russia's ongoing war on Ukraine, the continued U.S. political and military presence in Venezuela, and the conflict in Iran (and the resulting disruptions in oil, energy and other commodity markets and supply chains); | (26) | the potential deterioration of the U.S. economy due to financial, political or other shocks; | (27) | the potential influence on the U.S. financial markets and economy from the effects of climate change, including any enhanced regulatory, compliance, credit and reputational risks and costs; | (28) | the impact on Peoples' businesses and operating results of any costs associated with obtaining rights in intellectual property claimed by others and adequately protecting Peoples' intellectual property; | (29) | risks and uncertainties associated with Peoples' entry into new geographic markets and risks resulting from Peoples' inexperience in these new geographic markets; | (30) | Peoples' ability to integrate the pending Citizens merger and/or the pending Capital merger, which may be unsuccessful, or may be more difficult, time-consuming or costly than expected; | (31) | the failure to obtain necessary regulatory approvals in connection with the Capital merger (and the risk that such approvals may result in the imposition of conditions that could adversely affect the combined company or the expected benefits of the proposed transaction) and the possibility that the proposed Capital merger does not close when expected or at all because of the failure to obtain required regulatory approvals, shareholder approvals, or other approvals or because the other conditions to closing are not received or satisfied on a timely basis or at all; | (32) | the possibility that the anticipated benefits of the proposed Citizens merger and Capital merger, including expected revenue synergies and cost savings, will not be realized or will not be realized within expected time periods; | (33) | changes in laws or regulations imposed by Peoples' regulators impacting Peoples' capital actions, including dividend payments and share repurchases; | (34) | the vulnerability of Peoples' network and online banking portals, and the systems of parties with whom Peoples contracts, to unauthorized access, computer viruses, phishing schemes, spam attacks, human error, natural disasters, power loss and other security breaches; | (35) | regulatory and legal matters, including the failure to resolve any outstanding matters on a timely basis and the potential of new regulatory matters, litigation, or other legal actions, which may result in, among other things, additional costs, fines, penalties, restrictions on our business activities, reputational harm, or other adverse consequences; | (36) | the impact on Peoples of increased political and regulatory scrutiny of corporate environmental, social and governance ("ESG") practices; | (37) | the effect of a fall in stock market prices on Peoples' asset and wealth management business; | (38) | the risk that energy tax credits purchased and used by Peoples to reduce tax liabilities will be disallowed by the Internal Revenue Service; and | (39) | other risk factors relating to the banking industry or Peoples as detailed from time to time in Peoples' reports filed with the Securities and Exchange Commission (the "SEC"), including those risk factors included in the disclosures under the heading "ITEM 1A. RISK FACTORS" of Peoples' Annual Report on Form 10-K for the fiscal year ended December 31, 2025, as supplemented by the disclosures under the heading "ITEM 1A. RISK FACTORS" of Peoples' Quarterly Report on Form 10-Q for the quarterly period ending March 31, 2026. Peoples encourages readers of this news release to understand forward-looking statements to be strategic objectives rather than absolute targets of future performance. Peoples undertakes no obligation to update these forward-looking statements to reflect events or circumstances after the date of this news release or to reflect the occurrence of unanticipated events, except as required by applicable legal requirements. Copies of documents filed with the SEC are available free of charge at the SEC's website at http://www.sec.gov and/or from Peoples' website - www.peoplesbancorp.com under the "Investor Relations" section. As required by US GAAP, Peoples is required to evaluate the impact of subsequent events through the issuance date of its September 30, 2026 consolidated financial statements as part of its Quarterly Report on Form 10-Q to be filed with the SEC. Accordingly, subsequent events could occur that may cause Peoples to update its critical accounting estimates and/or to revise its financial information from the estimates and information contained in this news release. Additional Information and Where to Find It In connection with the proposed Capital merger, Peoples intends to file with the SEC a Registration Statement on Form S-4 to register the shares of Peoples common stock to be issued in connection with the proposed transaction. The Registration Statement will include a joint proxy statement/prospectus, and Peoples and Capital may file with the SEC other relevant documents concerning the proposed transaction. The information contained herein does not constitute an offer to sell or a solicitation of an offer to buy any securities or a solicitation of any vote or approval, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. BEFORE MAKING ANY VOTING OR INVESTMENT DECISION, INVESTORS AND SECURITY HOLDERS OF PEOPLES AND CAPITAL ARE URGED TO READ THE REGISTRATION STATEMENT AND JOINT PROXY STATEMENT/PROSPECTUS REGARDING THE PROPOSED TRANSACTION WHEN THEY BECOME AVAILABLE AND ANY OTHER RELEVANT DOCUMENTS FILED WITH THE SEC, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THOSE DOCUMENTS, BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT PEOPLES, CAPITAL, AND THE PROPOSED TRANSACTION AND RELATED MATTERS. Investors and security holders will be able to obtain a free copy of the registration statement, including the joint proxy statement/prospectus, as well as other relevant documents filed with the SEC containing information about Peoples and Capital, without charge, at the SEC's website (https://www.sec.gov). Participants in Solicitation Peoples and Capital, along with their respective directors, executive officers, management, and employees may be deemed participants in the solicitation of proxies in connection with the proposed Capital merger. Information concerning Peoples' participants is set forth in the Proxy Statement, dated March 6, 2026, for Peoples' 2026 annual meeting of shareholders as filed with the SEC on Schedule 14A. Information concerning Capital's participants is set forth in the Proxy Statement, dated April 7, 2026, for Capital's 2026 annual meeting of stockholders as filed with the SEC on Schedule 14A. Additional information regarding the participants in the solicitation of proxies in respect of the proposed transaction and interests of participants of Peoples and Capital in the solicitation of proxies in respect of the proposed merger will be included in the registration statement and joint proxy statement/prospectus to be filed with the SEC. Free copies of these documents, when available, may be obtained as described in the preceding paragraph. PER COMMON SHARE DATA AND SELECTED RATIOS (Unaudited) | At or For the Three Months Ended | | At or For the Nine Months Ended | September 30, | | June 30, | | September 30, | | September 30, | 2026 | | 2026 | | 2025 | | 2026 | | 2025 PER COMMON SHARE: | | | | | | | | | Earnings per common share: | | | | | | | | | Basic | $ 0.92 | | $ 0.79 | | $ 0.83 | | $ 2.52 | | $ 2.13 Diluted | 0.91 | | 0.78 | | 0.83 | | 2.49 | | 2.10 Cash dividends declared per common share | 0.42 | | 0.42 | | 0.41 | | 1.25 | | 1.22 Book value per common share (a) | 34.15 | | 34.41 | | 33.13 | | 34.15 | | 33.13 Tangible book value per common share (a)(b) | 23.35 | | 23.56 | | 22.05 | | 23.35 | | 22.05 Closing price of common shares at end of period | $ 36.59 | | $ 38.41 | | $ 29.99 | | $ 36.59 | | $ 29.99 | | | | | | | | | SELECTED RATIOS: | | | | | | | | | Return on average stockholders' equity (c) | 10.44 % | | 9.13 % | | 10.06 % | | 9.75 % | | 8.76 % Return on average tangible equity (c)(d) | 15.84 % | | 14.03 % | | 16.17 % | | 14.93 % | | 14.40 % Return on average assets (c) | 1.36 % | | 1.17 % | | 1.22 % | | 1.25 % | | 1.07 % Return on average assets adjusted for non-core items (c)(h) | 1.57 % | | 1.47 % | | 1.32 % | | 1.43 % | | 1.11 % Efficiency ratio (e) | 58.50 % | | 58.27 % | | 57.11 % | | 58.46 % | | 58.99 % Efficiency ratio adjusted for non-core items (f)(i) | 57.30 % | | 57.93 % | | 57.11 % | | 57.93 % | | 58.99 % Net interest margin (c)(f) | 4.31 % | | 4.23 % | | 4.16 % | | 4.23 % | | 4.15 % Dividend payout ratio (g) | 46.36 % | | 54.04 % | | 49.72 % | | 50.10 % | | 57.98 % (a) | Data presented as of the end of the period indicated. (b) | Tangible book value per common share represents a non-US GAAP financial measure since it excludes the balance sheet impact of goodwill and other intangible assets acquired through acquisitions on stockholders' equity. Additional information regarding the calculation of this ratio is included at the end of this news release under the caption of "Non-US GAAP Financial Measures (Unaudited)." (c) | Ratios are presented on an annualized basis. (d) | Return on average tangible equity represents a non-US GAAP financial measure since it excludes the after-tax impact of amortization of other intangible assets from net income and it excludes the balance sheet impact of average goodwill and other intangible assets acquired through acquisitions on average stockholders' equity. Additional information regarding the calculation of this ratio is included at the end of this news release under the caption of "Non-US GAAP Financial Measures (Unaudited)." (e) | The efficiency ratio is defined as total non-interest expense (less amortization of other intangible assets) as a percentage of fully tax-equivalent net interest income plus total non-interest income (excluding all gains and losses). This ratio represents a non-US GAAP financial measure since it excludes amortization of other intangible assets, and all gains and losses included in earnings, and uses fully tax-equivalent net interest income. Additional information regarding the calculation of this ratio is included at the end of this news release under the caption of "Non-US GAAP Financial Measures (Unaudited)." (f) | Interest income and yields are presented on a fully tax-equivalent basis, using a 21% statutory federal corporate income tax rate. (g) | This ratio is calculated based on dividends declared during the period divided by net income for the period. (h) | Return on average assets adjusted for non-core items represents a non-US GAAP financial measure since it excludes the after-tax impact of all gains and losses and acquisition-related expenses. Additional information regarding the calculation of this ratio is included at the end of this news release under the caption of "Non-US GAAP Financial Measures (Unaudited)." (i) | The efficiency ratio adjusted for non-core items is defined as core non-interest expense (less amortization of other intangible assets) as a percentage of fully tax-equivalent net interest income plus total non-interest income (excluding all gains and losses). This ratio represents a non-US GAAP financial measure since it excludes the impact of all gains and losses and acquisition-related expenses included in earnings, and uses fully tax-equivalent net interest income. Additional information regarding the calculation of this ratio is included at the end of this news release under the caption of "Non-US GAAP Financial Measures (Unaudited)." CONSOLIDATED STATEMENTS OF INCOME | Three Months Ended | | Nine Months Ended | September 30, | | June 30, | | September 30, | | September 30, | 2026 | | 2026 | | 2025 | | 2026 | | 2025 (Dollars in thousands, except per share data) | (Unaudited) | | (Unaudited) | | (Unaudited) | | (Unaudited) | | (Unaudited) Total interest income | $ 128,492 | | $ 127,580 | | $ 132,808 | | $ 382,893 | | $ 383,757 Total interest expense | 34,650 | | 34,852 | | 41,459 | | 105,903 | | 119,576 Net interest income | 93,842 | | 92,728 | | 91,349 | | 276,990 | | 264,181 Provision for credit losses | 3,569 | | 4,709 | | 7,280 | | 17,972 | | 34,112 Net interest income after provision for credit losses | 90,273 | | 88,019 | | 84,069 | | 259,018 | | 230,069 | | | | | | | | | Non-interest income: | | | | | | | | | Electronic banking income | 6,649 | | 6,543 | | 6,538 | | 19,119 | | 18,695 Trust and investment income | 6,176 | | 5,986 | | 5,414 | | 17,767 | | 15,756 Lease income | 5,696 | | 4,977 | | 3,643 | | 15,254 | | 11,322 Deposit account service charges | 4,679 | | 4,488 | | 4,274 | | 13,434 | | 12,348 Insurance income | 4,222 | | 4,331 | | 4,469 | | 14,133 | | 15,072 Bank owned life insurance income | 1,364 | | 1,189 | | 1,143 | | 3,715 | | 3,388 Mortgage banking income | 582 | | 598 | | 245 | | 1,556 | | 861 Net loss on asset disposals and other transactions | (311) | | (446) | | (478) | | (1,167) | | (1,119) Net loss on investment securities | (4,512) | | (8,181) | | (2,580) | | (12,693) | | (2,582) Other non-interest income | 1,100 | | 893 | | 1,159 | | 3,159 | | 4,065 Total non-interest income | 25,645 | | 20,378 | | 23,827 | | 74,277 | | 77,806 | | | | | | | | | Non-interest expense: | | | | | | | | | Salaries and employee benefit costs | 40,560 | | 40,012 | | 38,698 | | 120,407 | | 117,412 Data processing and software expense | 7,890 | | 7,850 | | 7,356 | | 23,276 | | 21,717 Net occupancy and equipment expense | 5,806 | | 5,765 | | 5,896 | | 17,795 | | 17,198 Professional fees | 4,743 | | 4,018 | | 2,798 | | 11,514 | | 9,495 Electronic banking expense | 2,337 | | 2,225 | | 2,161 | | 6,643 | | 6,204 Operating lease expense | 2,010 | | 1,797 | | 1,039 | | 5,611 | | 3,077 Amortization of other intangible assets | 1,697 | | 1,697 | | 2,211 | | 5,091 | | 6,635 Other loan expenses | 1,309 | | 1,278 | | 1,385 | | 3,710 | | 3,717 FDIC insurance expense | 1,260 | | 1,370 | | 1,284 | | 4,040 | | 3,786 Marketing expense | 1,004 | | 604 | | 1,001 | | 2,494 | | 2,622 Franchise tax expense | 956 | | 972 | | 916 | | 2,932 | | 2,523 Communication expense | 598 | | 605 | | 664 | | 1,792 | | 2,110 Travel and entertainment expense | 595 | | 726 | | 796 | | 1,904 | | 2,009 Other non-interest expense | 3,775 | | 3,840 | | 3,689 | | 11,725 | | 12,538 Total non-interest expense | 74,540 | | 72,759 | | 69,894 | | 218,934 | | 211,043 Income before income taxes | 41,378 | | 35,638 | | 38,002 | | 114,361 | | 96,832 Income tax expense | 8,772 | | 7,685 | | 8,526 | | 24,796 | | 21,808 Net income | $ 32,606 | | $ 27,953 | | $ 29,476 | | $ 89,565 | | $ 75,024 CONSOLIDATED STATEMENTS OF INCOME (Cont.) | Three Months Ended | | Nine Months Ended | September 30, | | June 30, | | September 30, | | September 30, | 2026 | | 2026 | | 2025 | | 2026 | | 2025 (Dollars in thousands, except per share data) | (Unaudited) | | (Unaudited) | | (Unaudited) | | (Unaudited) | | (Unaudited) PER COMMON SHARE DATA: | | | | | | | | | Net income available to common shareholders | $ 32,606 | | $ 27,953 | | $ 29,476 | | $ 89,565 | | $ 75,024 Less: Dividends paid on unvested common shares | 211 | | 212 | | 208 | | 623 | | 628 Less: Undistributed income allocated to unvested common shares | 88 | | 81 | | 46 | | 223 | | 100 Net earnings allocated to common shareholders | $ 32,307 | | $ 27,660 | | $ 29,222 | | $ 88,719 | | $ 74,296 | | | | | | | | | Weighted-average common shares outstanding | 35,197,746 | | 35,173,525 | | 35,003,054 | | 35,160,300 | | 34,957,341 Effect of potentially dilutive common shares | 464,688 | | 393,041 | | 395,755 | | 413,759 | | 370,475 Total weighted-average diluted common shares outstanding | 35,662,434 | | 35,566,566 | | 35,398,809 | | 35,574,059 | | 35,327,816 | | | | | | | | | Earnings per common share – basic | $ 0.92 | | $ 0.79 | | $ 0.83 | | $ 2.52 | | $ 2.13 Earnings per common share – diluted | $ 0.91 | | $ 0.78 | | $ 0.83 | | $ 2.49 | | $ 2.10 Cash dividends declared per common share | $ 0.42 | | $ 0.42 | | $ 0.41 | | $ 1.25 | | $ 1.22 | | | | | | | | | Weighted-average common shares outstanding – basic | 35,197,746 | | 35,173,525 | | 35,003,054 | | 35,160,300 | | 34,957,341 Weighted-average common shares outstanding – diluted | 35,662,434 | | 35,566,566 | | 35,398,809 | | 35,574,059 | | 35,327,816 Common shares outstanding at the end of period | 35,961,276 | | 35,939,954 | | 35,705,369 | | 35,961,276 | | 35,705,369 CONSOLIDATED BALANCE SHEETS | September 30, | | December 31, | 2026 | | 2025 (Dollars in thousands) | (Unaudited) | | Assets | | | Cash and cash equivalents: | | | Cash and due from banks | $ 92,955 | | $ 107,864 Interest-bearing deposits in other banks | 207,820 | | 81,087 Total cash and cash equivalents | 300,775 | | 188,951 Available-for-sale investment securities, at fair value (amortized cost of | | | $934,740 at September 30, 2026 and $1,076,980 at December 31, 2025) (a) | 805,119 | | 984,367 Held-to-maturity investment securities, at amortized cost (fair value of | | | $766,426 at September 30, 2026 and $867,714 at December 31, 2025) (a) | 878,076 | | 922,837 Other investment securities, at cost | 81,529 | | 68,656 Total investment securities (a) | 1,764,724 | | 1,975,860 Loans and leases, net of deferred fees and costs (b) | 6,840,809 | | 6,756,907 Allowance for credit losses | (75,727) | | (75,676) Net loans and leases | 6,765,082 | | 6,681,231 Loans held for sale | 3,251 | | 2,667 Bank premises and equipment, net of accumulated depreciation | 96,721 | | 100,508 Bank owned life insurance | 151,820 | | 148,264 Goodwill | 363,199 | | 363,199 Other intangible assets | 25,106 | | 30,120 Other assets | 181,417 | | 158,830 Total assets | $ 9,652,095 | | $ 9,649,630 Liabilities | | | Deposits: | | | Non-interest-bearing | $ 1,560,184 | | $ 1,545,428 Interest-bearing | 5,881,910 | | 6,159,155 Total deposits | 7,442,094 | | 7,704,583 Short-term borrowings | 704,120 | | 435,926 Long-term borrowings | 155,054 | | 204,138 Accrued expenses and other liabilities | 122,924 | | 98,381 Total liabilities | $ 8,424,192 | | $ 8,443,028 | | | Stockholders' Equity | | | Preferred shares, no par value, 50,000 shares authorized, no shares issued at September 30, 2026 or at December 31, 2025 | — | | — Common shares, no par value, 50,000,000 shares authorized, 36,868,595 shares issued at September 30, 2026 and 36,836,943 shares issued at December 31, 2025, including shares in treasury | 871,896 | | 871,571 Retained earnings | 481,443 | | 436,748 Accumulated other comprehensive loss, net of deferred income taxes | (99,385) | | (70,628) Treasury stock, at cost, 996,472 common shares at September 30, 2026 and 1,215,120 common shares at December 31, 2025 | (26,051) | | (31,089) Total stockholders' equity | 1,227,903 | | 1,206,602 Total liabilities and stockholders' equity | $ 9,652,095 | | $ 9,649,630 (a) | Available-for-sale investment securities and held-to-maturity investment securities are presented net of allowance for credit losses of $0 and $233 and $0 and $236 at September 30, 2026, and at December 31, 2025, respectively. (b) | Also referred to throughout this document as "total loans" and "loans held for investment." SELECTED FINANCIAL INFORMATION (Unaudited) | September 30, | June 30, | March 31, | December 31, | September 30, (Dollars in thousands) | 2026 | 2026 | 2026 | 2025 | 2025 Loan Portfolio | | | | | Construction | $ 334,701 | $ 294,350 | $ 269,571 | $ 300,941 | $ 261,048 Commercial real estate, other | 2,244,721 | 2,283,163 | 2,340,833 | 2,363,967 | 2,369,396 Commercial and industrial | 1,724,108 | 1,689,817 | 1,646,797 | 1,535,755 | 1,489,505 Premium finance | 270,634 | 266,015 | 228,883 | 253,075 | 273,297 Leases | 342,343 | 353,952 | 350,226 | 365,649 | 382,753 Residential real estate | 832,656 | 846,475 | 852,011 | 861,722 | 875,773 Home equity lines of credit | 284,173 | 273,965 | 260,909 | 253,864 | 247,383 Consumer, indirect | 685,329 | 693,529 | 699,854 | 700,582 | 710,385 Consumer, direct | 120,536 | 119,273 | 119,859 | 120,338 | 118,206 Deposit account overdrafts | 1,608 | 1,041 | 1,265 | 1,014 | 982 Total loans and leases | $ 6,840,809 | $ 6,821,580 | $ 6,770,208 | $ 6,756,907 | $ 6,728,728 Total acquired loans and leases (a) | $ 1,084,152 | $ 1,140,586 | $ 1,225,112 | $ 1,299,543 | $ 1,380,354 Total originated loans and leases | $ 5,756,657 | $ 5,680,994 | $ 5,545,096 | $ 5,457,364 | $ 5,348,374 Total investment securities | $ 1,764,724 | $ 1,817,481 | $ 1,961,522 | $ 1,975,860 | $ 1,972,721 Deposit Balances | | | | | Non-interest-bearing deposits (b) | $ 1,560,184 | $ 1,593,799 | $ 1,586,514 | $ 1,545,428 | $ 1,536,094 Interest-bearing deposits: | | | | | Retail certificates of deposit | 1,831,665 | 1,876,056 | 1,968,441 | 1,983,791 | 2,008,619 Interest-bearing demand accounts (b) | 1,146,769 | 1,094,873 | 1,111,875 | 1,092,252 | 1,068,443 Money market deposit accounts | 1,041,921 | 995,487 | 958,413 | 945,313 | 948,177 Savings accounts | 913,816 | 915,505 | 918,557 | 887,402 | 884,230 Governmental deposit accounts | 755,584 | 755,024 | 842,087 | 739,939 | 769,782 Brokered deposits | 192,155 | 225,621 | 262,553 | 510,458 | 617,179 Total interest-bearing deposits | $ 5,881,910 | $ 5,862,566 | $ 6,061,926 | $ 6,159,155 | $ 6,296,430 Total deposits | $ 7,442,094 | $ 7,456,365 | $ 7,648,440 | $ 7,704,583 | $ 7,832,524 Total demand deposits (b) | $ 2,706,953 | $ 2,688,672 | $ 2,698,389 | $ 2,637,680 | $ 2,604,537 Asset Quality | | | | | Nonperforming assets (NPAs): | | | | | Loans 90+ days past due and accruing | $ 8,114 | $ 7,838 | $ 2,846 | $ 6,156 | $ 4,898 Nonaccrual loans | 28,500 | 33,101 | 36,714 | 36,886 | 33,889 Total nonperforming loans (NPLs) (f) | 36,614 | 40,939 | 39,560 | 43,042 | 38,787 Other real estate owned (OREO) | 341 | 115 | 97 | 123 | 6,013 Total NPAs (f) | $ 36,955 | $ 41,054 | $ 39,657 | $ 43,165 | $ 44,800 Criticized loans (c) | $ 256,049 | $ 273,791 | $ 224,124 | $ 236,468 | $ 268,326 Classified loans (d) | 170,916 | 140,811 | 141,940 | 147,175 | 158,577 Allowance for credit losses as a percent of NPLs (f) | 206.83 % | 190.78 % | 198.16 % | 175.82 % | 193.01 % NPLs as a percent of total loans (f) | 0.53 % | 0.60 % | 0.58 % | 0.64 % | 0.58 % NPAs as a percent of total assets (f) | 0.38 % | 0.43 % | 0.41 % | 0.45 % | 0.47 % NPAs as a percent of total loans and OREO (f) | 0.54 % | 0.60 % | 0.59 % | 0.64 % | 0.66 % Criticized loans as a percent of total loans (c) | 3.74 % | 4.01 % | 3.31 % | 3.50 % | 3.99 % Classified loans as a percent of total loans (d) | 2.50 % | 2.06 % | 2.10 % | 2.18 % | 2.36 % Allowance for credit losses as a percent of total loans | 1.11 % | 1.14 % | 1.16 % | 1.12 % | 1.11 % Total demand deposits as a percent of total deposits (b) | 36.37 % | 36.06 % | 35.28 % | 34.24 % | 33.25 % Capital Information (e)(g) | | | | | Common equity tier 1 capital ratio (h) | 12.81 % | 12.66 % | 12.45 % | 12.29 % | 12.11 % Tier 1 risk-based capital ratio | 13.24 % | 13.10 % | 12.89 % | 12.73 % | 12.54 % Total risk-based capital ratio (tier 1 and tier 2) | 14.29 % | 14.19 % | 13.98 % | 13.78 % | 13.79 % Leverage ratio | 10.67 % | 10.33 % | 10.14 % | 9.91 % | 9.74 % Common equity tier 1 capital | $ 949,924 | $ 928,639 | $ 911,986 | $ 893,970 | $ 875,454 Tier 1 capital | 982,293 | 960,823 | 943,986 | 925,616 | 906,900 Total capital (tier 1 and tier 2) | 1,059,990 | 1,041,030 | 1,023,777 | 1,002,226 | 997,309 Total risk-weighted assets | $ 7,417,087 | $ 7,334,717 | $ 7,323,344 | $ 7,273,985 | $ 7,231,476 Total stockholders' equity to total assets | 12.72 % | 12.96 % | 12.60 % | 12.50 % | 12.29 % Tangible equity to tangible assets (i) | 9.06 % | 9.25 % | 8.91 % | 8.79 % | 8.53 % (a) | Includes all loans and leases acquired and purchased in 2012 and thereafter. (b) | The sum of non-interest-bearing deposits and interest-bearing demand accounts is considered total demand deposits. (c) | Includes loans categorized as special mention, substandard, doubtful or loss. (d) | Includes loans categorized as substandard, doubtful or loss. (e) | Data presented as of the end of the period indicated. (f) | Nonperforming loans include loans 90+ days past due and accruing, renegotiated loans and nonaccrual loans. Nonperforming assets include nonperforming loans and OREO. (g) | September 30, 2026 data based on preliminary analysis and subject to revision. (h) | Peoples' capital conservation buffer was 6.29% at September 30, 2026, 6.19% at June 30, 2026, 5.98% at March 31, 2026, 5.78% at December 31, 2025, and 5.79% at September 30, 2025, compared to required capital conservation buffer of 2.50% (i) | This ratio represents a non-US GAAP financial measure since it excludes the balance sheet impact of intangible assets acquired through acquisitions on both total stockholders' equity and total assets. Additional information regarding the calculation of this ratio is included at the end of this news release under the caption of "Non-US GAAP Financial Measures (Unaudited)." PROVISION FOR (RECOVERY OF) CREDIT LOSSES INFORMATION | Three Months Ended | | Nine Months Ended | September 30, | | June 30, | | September 30, | | September 30, | 2026 | | 2026 | | 2025 | | 2026 | | 2025 (Dollars in thousands) | (Unaudited) | | (Unaudited) | | (Unaudited) | | (Unaudited) | | (Unaudited) Provision for credit losses | | | | | | | | | Provision for credit losses | $ 3,307 | | $ 4,477 | | $ 7,004 | | $ 17,199 | | $ 33,514 Provision for checking account overdrafts | 262 | | 232 | | 276 | | 773 | | 598 Total provision for credit losses | $ 3,569 | | $ 4,709 | | $ 7,280 | | $ 17,972 | | $ 34,112 | | | | | | | | | Net Charge-Offs | | | | | | | | | Gross charge-offs | $ 7,580 | | $ 6,766 | | $ 7,841 | | $ 22,105 | | $ 24,430 Recoveries | 1,568 | | 1,581 | | 1,012 | | 4,263 | | 2,516 Net charge-offs | $ 6,012 | | $ 5,185 | | $ 6,829 | | $ 17,842 | | $ 21,914 | | | | | | | | | Net Charge-Offs (Recoveries) by Type | | | | | | | | | Commercial real estate, other | $ 688 | | $ 167 | | $ 26 | | $ 855 | | $ 272 Commercial and industrial | 879 | | 196 | | 446 | | 1,329 | | 1,359 Premium finance | 77 | | 50 | | 102 | | 173 | | 257 Leases | 2,549 | | 3,403 | | 4,487 | | 10,206 | | 14,734 Residential real estate | — | | 62 | | 31 | | 99 | | 74 Home equity lines of credit | — | | 32 | | 27 | | 52 | | 39 Consumer, indirect | 1,290 | | 841 | | 1,189 | | 3,723 | | 4,089 Consumer, direct | 301 | | 183 | | 263 | | 662 | | 480 Deposit account overdrafts | 228 | | 251 | | 258 | | 743 | | 610 Total net charge-offs | $ 6,012 | | $ 5,185 | | $ 6,829 | | $ 17,842 | | $ 21,914 | | | | | | | | | As a percent of average total loans (annualized) | 0.35 % | | 0.31 % | | 0.41 % | | 0.35 % | | 0.45 % SUPPLEMENTAL INFORMATION (Unaudited) | September 30, | | June 30, | | March 31, | | December 31, | | September 30, (Dollars in thousands) | 2026 | | 2026 | | 2026 | | 2025 | | 2025 | | | | | | | | | Trust assets under administration and management | $ 2,503,011 | | $ 2,521,031 | | $ 2,178,467 | | $ 2,219,650 | | $ 2,271,536 Brokerage assets under administration and management | 1,998,810 | | 1,984,252 | | 1,844,940 | | 1,846,084 | | 1,800,781 Mortgage loans serviced for others | 328,922 | | 326,021 | | 319,664 | | 322,139 | | 323,347 Employees (full-time equivalent) | 1,463 | | 1,443 | | 1,458 | | 1,454 | | 1,454 CONSOLIDATED AVERAGE BALANCE SHEETS AND NET INTEREST INCOME (Unaudited) | Three Months Ended | September 30, 2026 | | June 30, 2026 | | September 30, 2025 (Dollars in thousands) | Balance | Income/Expense | Yield/ Cost | | Balance | Income/Expense | Yield/ Cost | | Balance | Income/Expense | Yield/ Cost Assets | | | | | | | | | | | Short-term investments | $ 76,128 | $ 757 | 3.95 % | | $ 112,726 | $ 1,084 | 3.86 % | | $ 71,028 | $ 782 | 4.37 % Investment securities (a)(b) | 1,781,294 | 16,477 | 3.70 % | | 1,887,908 | 17,133 | 3.63 % | | 2,018,463 | 19,119 | 3.79 % Loans (b)(c): | | | | | | | | | | | Construction | 311,630 | 5,319 | 6.68 % | | 282,906 | 4,989 | 6.98 % | | 333,782 | 5,759 | 6.75 % Commercial real estate, other | 2,158,376 | 33,088 | 6.00 % | | 2,205,065 | 33,969 | 6.09 % | | 2,144,859 | 34,751 | 6.34 % Commercial and industrial | 1,695,539 | 27,586 | 6.37 % | | 1,652,813 | 25,826 | 6.18 % | | 1,428,843 | 25,090 | 6.87 % Premium finance | 267,007 | 5,648 | 8.28 % | | 243,558 | 5,154 | 8.37 % | | 273,730 | 5,820 | 8.32 % Leases | 346,190 | 8,004 | 9.05 % | | 352,662 | 8,180 | 9.18 % | | 390,499 | 9,520 | 9.54 % Residential real estate (d) | 932,038 | 12,940 | 5.55 % | | 943,268 | 12,927 | 5.48 % | | 990,040 | 13,466 | 5.44 % Home equity lines of credit | 279,640 | 4,962 | 7.04 % | | 267,892 | 4,684 | 7.01 % | | 245,024 | 4,765 | 7.72 % Consumer, indirect | 689,424 | 11,275 | 6.49 % | | 698,460 | 11,322 | 6.50 % | | 703,619 | 11,545 | 6.51 % Consumer, direct | 129,695 | 2,647 | 8.10 % | | 127,928 | 2,533 | 7.94 % | | 123,927 | 2,470 | 7.91 % Total loans | 6,809,539 | 111,469 | 6.44 % | | 6,774,552 | 109,584 | 6.42 % | | 6,634,323 | 113,186 | 6.71 % Allowance for credit losses | (78,067) | | | | (78,113) | | | | (74,485) | | Net loans | 6,731,472 | | | | 6,696,439 | | | | 6,559,838 | | Total earning assets | 8,588,894 | 128,703 | 5.91 % | | 8,697,073 | 127,801 | 5.84 % | | 8,649,329 | 133,087 | 6.07 % | | | | | | | | | | | Goodwill and other intangible assets | 389,131 | | | | 390,753 | | | | 396,636 | | Other assets | 504,341 | | | | 498,500 | | | | 528,305 | | Total assets | $ 9,482,366 | | | | $ 9,586,326 | | | | $ 9,574,270 | | | | | | | | | | | | | Liabilities and Equity | | | | | | | | | | | Interest-bearing deposits: | | | | | | | | | | | Savings accounts | $ 916,584 | $ 177 | 0.08 % | | $ 917,693 | $ 181 | 0.08 % | | $ 890,316 | $ 196 | 0.09 % Governmental deposit accounts | 752,278 | 3,869 | 2.04 % | | 818,274 | 4,151 | 2.03 % | | 787,079 | 4,745 | 2.39 % Interest-bearing demand accounts | 1,066,987 | 698 | 0.26 % | | 1,091,757 | 602 | 0.22 % | | 1,084,051 | 617 | 0.23 % Money market deposit accounts | 993,573 | 5,309 | 2.12 % | | 970,487 | 4,977 | 2.06 % | | 954,778 | 5,671 | 2.36 % Retail certificates of deposit | 1,856,852 | 14,693 | 3.14 % | | 1,917,698 | 15,357 | 3.21 % | | 2,007,768 | 18,094 | 3.58 % Brokered deposits (e) | 304,331 | 3,063 | 3.99 % | | 245,378 | 2,455 | 4.01 % | | 491,041 | 5,211 | 4.21 % Total interest-bearing deposits | 5,890,605 | 27,809 | 1.87 % | | 5,961,287 | 27,723 | 1.87 % | | 6,215,033 | 34,534 | 2.21 % Short-term borrowings (e) | 453,056 | 4,347 | 3.81 % | | 487,109 | 4,550 | 3.75 % | | 308,916 | 3,400 | 4.37 % Long-term borrowings | 155,077 | 2,494 | 6.37 % | | 182,032 | 2,579 | 5.66 % | | 229,388 | 3,525 | 6.07 % Total borrowed funds | 608,133 | 6,841 | 4.46 % | | 669,141 | 7,129 | 4.26 % | | 538,304 | 6,925 | 5.10 % Total interest-bearing liabilities | 6,498,738 | 34,650 | 2.12 % | | 6,630,428 | 34,852 | 2.11 % | | 6,753,337 | 41,459 | 2.44 % | | | | | | | | | | | Non-interest-bearing deposits | 1,636,258 | | | | 1,631,305 | | | | 1,544,184 | | Other liabilities | 107,805 | | | | 96,401 | | | | 113,981 | | Total liabilities | 8,242,801 | | | | 8,358,134 | | | | 8,411,502 | | Stockholders' equity | 1,239,565 | | | | 1,228,192 | | | | 1,162,768 | | Total liabilities and stockholders' equity | $ 9,482,366 | | | | $ 9,586,326 | | | | $ 9,574,270 | | | | | | | | | | | | | Net interest income/spread (b) | | $ 94,053 | 3.79 % | | | $ 92,949 | 3.73 % | | | $ 91,628 | 3.63 % Net interest margin (b) | | | 4.31 % | | | | 4.23 % | | | | 4.16 % (a) | Average balances are based on carrying value. (b) | Interest income and yields are presented on a fully tax-equivalent basis, using a 21% statutory federal corporate income tax rate. (c) | Average balances include nonaccrual and impaired loans. Interest income includes interest earned and received on nonaccrual loans prior to the loans being placed on nonaccrual status. Loan fees included in interest income were immaterial for all periods presented. (d) | Loans held for sale are included in the average loan balance listed. Related interest income on loans originated for sale prior to the loan being sold is included in loan interest income. (e) | Interest related to interest rate swap transactions is included, as appropriate to the transaction, in interest expense on short-term FHLB advances and interest expense on brokered deposits for the periods presented in which FHLB advances and brokered deposits were being utilized. CONSOLIDATED AVERAGE BALANCE SHEETS AND NET INTEREST INCOME (Unaudited) -- (Continued) | Nine Months Ended | September 30, 2026 | | September 30, 2025 (Dollars in thousands) | Balance | Income/Expense | Yield/ Cost | | Balance | Income/Expense | Yield/ Cost Assets | | | | | | | Short-term investments | $ 90,550 | $ 2,631 | 3.88 % | | $ 82,135 | $ 2,720 | 4.43 % Investment securities (a)(b) | 1,876,389 | 51,168 | 3.64 % | | 1,942,572 | 52,524 | 3.61 % Loans (b)(c): | | | | | | | Construction | 294,889 | 14,893 | 6.66 % | | 327,512 | 17,266 | 6.95 % Commercial real estate, other | 2,204,782 | 101,716 | 6.08 % | | 2,108,596 | 101,444 | 6.34 % Commercial and industrial | 1,634,908 | 78,522 | 6.33 % | | 1,363,990 | 71,727 | 6.93 % Premium finance | 249,931 | 15,354 | 8.10 % | | 266,808 | 17,148 | 8.48 % Leases | 351,534 | 24,762 | 9.29 % | | 389,933 | 30,004 | 10.15 % Residential real estate (d) | 944,457 | 38,916 | 5.49 % | | 973,555 | 37,906 | 5.19 % Home equity lines of credit | 268,109 | 14,051 | 7.01 % | | 239,401 | 13,687 | 7.64 % Consumer, indirect | 696,058 | 33,890 | 6.51 % | | 688,234 | 33,130 | 6.44 % Consumer, direct | 128,687 | 7,667 | 7.97 % | | 120,411 | 7,042 | 7.82 % Total loans | 6,773,355 | 329,771 | 6.44 % | | 6,478,440 | 329,354 | 6.73 % Allowance for credit losses | (77,165) | | | | (67,619) | | Net loans | 6,696,190 | | | | 6,410,821 | | Total earning assets | 8,663,129 | 383,570 | 5.87 % | | 8,435,528 | 384,598 | 6.04 % | | | | | | | Goodwill and other intangible assets | 390,779 | | | | 398,956 | | Other assets | 502,257 | | | | 521,144 | | Total assets | $ 9,556,165 | | | | $ 9,355,628 | | | | | | | | | Liabilities and Equity | | | | | | | Interest-bearing deposits: | | | | | | | Savings accounts | $ 912,492 | $ 542 | 0.08 % | | $ 886,316 | $ 633 | 0.10 % Governmental deposit accounts | 784,254 | 11,943 | 2.04 % | | 793,581 | 14,271 | 2.40 % Interest-bearing demand accounts | 1,071,518 | 1,873 | 0.23 % | | 1,081,313 | 1,703 | 0.21 % Money market deposit accounts | 963,491 | 14,827 | 2.06 % | | 935,873 | 16,554 | 2.36 % Retail certificates of deposit | 1,915,433 | 46,505 | 3.25 % | | 1,981,959 | 54,762 | 3.69 % Brokered deposit (e) | 322,534 | 9,534 | 3.95 % | | 498,640 | 15,889 | 4.26 % Total interest-bearing deposits | 5,969,722 | 85,224 | 1.91 % | | 6,177,682 | 103,812 | 2.25 % Short-term borrowings (e) | 457,692 | 12,793 | 3.74 % | | 158,072 | 5,058 | 4.28 % Long-term borrowings | 175,883 | 7,886 | 5.96 % | | 233,468 | 10,705 | 6.09 % Total borrowed funds | 633,575 | 20,679 | 4.35 % | | 391,540 | 15,763 | 5.36 % Total interest-bearing liabilities | 6,603,297 | 105,903 | 2.14 % | | 6,569,222 | 119,575 | 2.43 % | | | | | | | Non-interest-bearing deposits | 1,624,206 | | | | 1,530,040 | | Other liabilities | 99,876 | | | | 111,926 | | Total liabilities | 8,327,379 | | | | 8,211,188 | | Stockholders' equity | 1,228,786 | | | | 1,144,440 | | Total liabilities and stockholders' equity | $ 9,556,165 | | | | $ 9,355,628 | | | | | | | | | Net interest income/spread (b) | | $ 277,667 | 3.73 % | | | $ 265,023 | 3.61 % Net interest margin (b) | | | 4.23 % | | | | 4.15 % (a) | Average balances are based on carrying value. (b) | Interest income and yields are presented on a fully tax-equivalent basis, using a 21% statutory federal corporate income tax rate. (c) | Average balances include nonaccrual and impaired loans. Interest income includes interest earned and received on nonaccrual loans prior to the loans being placed on nonaccrual status. Loan fees included in interest income were immaterial for all periods presented. (d) | Loans held for sale are included in the average loan balance listed. Related interest income on loans originated for sale prior to the loan being sold is included in loan interest income. (e) | Interest related to interest rate swap transactions is included, as appropriate to the transaction, in interest expense on short-term FHLB advances and interest expense on brokered deposits for the periods presented in which FHLB advances and brokered deposits were being utilized. NON-US GAAP FINANCIAL MEASURES (Unaudited) The following non-US GAAP financial measures used by Peoples provide information useful to investors in understanding Peoples' operating performance and trends, and facilitate comparisons with the performance of Peoples' peers. The following tables summarize the non-US GAAP financial measures derived from amounts reported in Peoples' consolidated financial statements: | Three Months Ended | | Nine Months Ended | September 30, | | June 30, | | September 30, | | September 30, (Dollars in thousands) | 2026 | | 2026 | | 2025 | | 2026 | | 2025 | | | | | | | | | Core non-interest expense: | | | | | | | | | Total non-interest expense | $ 74,540 | | $ 72,759 | | $ 69,894 | | $ 218,934 | | $ 211,043 Less: acquisition-related expenses | 1,498 | | 410 | | — | | 1,924 | | — Core non-interest expense | $ 73,042 | | $ 72,349 | | $ 69,894 | | $ 217,010 | | $ 211,043 | Three Months Ended | | Nine Months Ended | September 30, | | June 30, | | September 30, | | September 30, (Dollars in thousands) | 2026 | | 2026 | | 2025 | | 2026 | | 2025 | | | | | | | | | Efficiency ratio: | | | | | | | | | Total non-interest expense | $ 74,540 | | $ 72,759 | | $ 69,894 | | $ 218,934 | | $ 211,043 Less: amortization of other intangible assets | 1,697 | | 1,697 | | 2,211 | | 5,091 | | 6,635 Adjusted total non-interest expense | 72,843 | | 71,062 | | 67,683 | | 213,843 | | 204,408 | | | | | | | | | Total non-interest income | 25,645 | | 20,378 | | 23,827 | | 74,277 | | 77,806 Less: net loss on investment securities | (4,512) | | (8,181) | | (2,580) | | (12,693) | | (2,582) Less: net loss on asset disposals and other transactions | (311) | | (446) | | (478) | | (1,167) | | (1,119) Total non-interest income, excluding net gains and losses | 30,468 | | 29,005 | | 26,885 | | 88,137 | | 81,507 | | | | | | | | | Net interest income | 93,842 | | 92,728 | | 91,349 | | 276,990 | | 264,181 Add: fully tax-equivalent adjustment (a) | 211 | | 221 | | 279 | | 677 | | 842 Net interest income on a fully tax-equivalent basis | 94,053 | | 92,949 | | 91,628 | | 277,667 | | 265,023 | | | | | | | | | Adjusted revenue | $ 124,521 | | $ 121,954 | | $ 118,513 | | $ 365,804 | | $ 346,530 | | | | | | | | | Efficiency ratio | 58.50 % | | 58.27 % | | 57.11 % | | 58.46 % | | 58.99 % | | | | | | | | | Efficiency ratio adjusted for non-core items: | | | | | | | | Core non-interest expense | $ 73,042 | | $ 72,349 | | $ 69,894 | | $ 217,010 | | $ 211,043 Less: amortization of other intangible assets | 1,697 | | 1,697 | | 2,211 | | 5,091 | | 6,635 Adjusted core non-interest expense | 71,345 | | 70,652 | | 67,683 | | 211,919 | | 204,408 | | | | | | | | | Adjusted revenue | $ 124,521 | | $ 121,954 | | $ 118,513 | | $ 365,804 | | $ 346,530 | | | | | | | | | Efficiency ratio adjusted for non-core items | 57.30 % | | 57.93 % | | 57.11 % | | 57.93 % | | 58.99 % (a) | Tax effect is calculated using a 21% statutory federal corporate income tax rate. NON-US GAAP FINANCIAL MEASURES (Unaudited) -- (Continued) | | At or For the Three Months Ended | September 30, | | June 30, | | March 31, | | December 31, | | September 30, (Dollars in thousands, except per share data) | 2026 | | 2026 | | 2026 | | 2025 | | 2025 | | | | | | | | | Tangible equity: | | | | | | | | | Total stockholders' equity | $ 1,227,903 | | $ 1,236,551 | | $ 1,216,040 | | $ 1,206,602 | | $ 1,182,776 Less: goodwill and other intangible assets | 388,305 | | 389,963 | | 391,601 | | 393,319 | | 395,535 Tangible equity | $ 839,598 | | $ 846,588 | | $ 824,439 | | $ 813,283 | | $ 787,241 | | | | | | | | | Tangible assets: | | | | | | | | | Total assets | $ 9,652,095 | | $ 9,540,161 | | $ 9,648,087 | | $ 9,649,630 | | $ 9,623,944 Less: goodwill and other intangible assets | 388,305 | | 389,963 | | 391,601 | | 393,319 | | 395,535 Tangible assets | $ 9,263,790 | | $ 9,150,198 | | $ 9,256,486 | | $ 9,256,311 | | $ 9,228,409 | | | | | | | | | Tangible book value per common share: | | | | | | | | | Tangible equity | $ 839,598 | | $ 846,588 | | $ 824,439 | | $ 813,283 | | $ 787,241 Common shares outstanding | 35,961,276 | | 35,939,954 | | 35,925,945 | | 35,714,484 | | 35,705,369 | | | | | | | | | Tangible book value per common share | $ 23.35 | | $ 23.56 | | $ 22.95 | | $ 22.77 | | $ 22.05 | | | | | | | | | Tangible equity to tangible assets ratio: | | | | | | | | | Tangible equity | $ 839,598 | | $ 846,588 | | $ 824,439 | | $ 813,283 | | $ 787,241 Tangible assets | $ 9,263,790 | | $ 9,150,198 | | $ 9,256,486 | | $ 9,256,311 | | $ 9,228,409 | | | | | | | | | Tangible equity to tangible assets | 9.06 % | | 9.25 % | | 8.91 % | | 8.79 % | | 8.53 % | | | | | | | | | | Three Months Ended | | Nine Months Ended | September 30, | | June 30, | | September 30, | | September 30, (Dollars in thousands) | 2026 | | 2026 | | 2025 | | 2026 | | 2025 | | | | | | | | | Pre-provision net revenue: | | | | | | | | | Income before income taxes | $ 41,378 | | $ 35,638 | | $ 38,002 | | $ 114,361 | | $ 96,832 Add: provision for credit losses | 3,569 | | 4,709 | | 7,280 | | 17,972 | | 34,112 Add: net (gain) loss on OREO | (403) | | — | | — | | (377) | | (30) Add: net loss on investment securities | 4,512 | | 8,181 | | 2,580 | | 12,693 | | 2,582 Add: net loss on other assets | 366 | | 453 | | 424 | | 1,203 | | 1,021 Add: net (gain) loss on other transactions | 348 | | (7) | | 54 | | 341 | | 128 Pre-provision net revenue | $ 49,770 | | $ 48,974 | | $ 48,340 | | $ 146,193 | | $ 134,645 NON-US GAAP FINANCIAL MEASURES (Unaudited) -- (Continued) | Three Months Ended | | Nine Months Ended | September 30, | | June 30, | | September 30, | | September 30, (Dollars in thousands) | 2026 | | 2026 | | 2025 | | 2026 | | 2025 | | | | | | | | | Annualized net income adjusted for non-core items: | | | | Net income | $ 32,606 | | $ 27,953 | | $ 29,476 | | $ 89,565 | | $ 75,024 Add: net loss on investment securities | 4,512 | | 8,181 | | 2,580 | | 12,693 | | 2,582 Less: tax effect of net loss on investment securities (a) | 948 | | 1,718 | | 542 | | 2,666 | | 542 Add: net loss on asset disposals and other transactions | 311 | | 446 | | 478 | | 1,167 | | 1,119 Less: tax effect of net loss on asset disposals and other transactions (a) | 65 | | 94 | | 100 | | 245 | | 235 Add: acquisition-related expenses | 1,498 | | 410 | | — | | 1,924 | | — Less: tax effect of acquisition-related expenses (a) | 315 | | 86 | | — | | 404 | | — Net income adjusted for non-core items | $ 37,599 | | $ 35,092 | | $ 31,892 | | $ 102,034 | | $ 77,948 | | | | | | | | | Days in the period | 92 | | 91 | | 92 | | 273 | | 273 Days in the year | 365 | | 365 | | 365 | | 365 | | 365 Annualized net income | $ 129,361 | | $ 112,119 | | $ 116,943 | | $ 119,748 | | $ 100,307 Annualized net income adjusted for non-core items | $ 149,170 | | $ 140,754 | | $ 126,528 | | $ 136,419 | | $ 104,216 Return on average assets: | | | | | | | | | Annualized net income | $ 129,361 | | $ 112,119 | | $ 116,943 | | $ 119,748 | | $ 100,307 Total average assets | $ 9,482,366 | | $ 9,586,326 | | $ 9,574,270 | | $ 9,556,165 | | $ 9,355,628 Return on average assets | 1.36 % | | 1.17 % | | 1.22 % | | 1.25 % | | 1.07 % Return on average assets adjusted for non-core items: | | | | Annualized net income adjusted for non-core items | $ 149,170 | | $ 140,754 | | $ 126,528 | | $ 136,419 | | $ 104,216 Total average assets | $ 9,482,366 | | $ 9,586,326 | | $ 9,574,270 | | $ 9,556,165 | | $ 9,355,628 Return on average assets adjusted for non-core items | 1.57 % | | 1.47 % | | 1.32 % | | 1.43 % | | 1.11 % (a) | Tax effect is calculated using a 21% statutory federal corporate income tax rate. NON-US GAAP FINANCIAL MEASURES (Unaudited) -- (Continued) | For the Three Months Ended | | Nine Months Ended | September 30, | | June 30, | | September 30, | | September 30, (Dollars in thousands) | 2026 | | 2026 | | 2025 | | 2026 | | 2025 | | | | | | | | | Annualized net income excluding amortization of other intangible assets: | | | | Net income | $ 32,606 | | $ 27,953 | | $ 29,476 | | $ 89,565 | | $ 75,024 Add: amortization of other intangible assets | 1,697 | | 1,697 | | 2,211 | | 5,091 | | 6,635 Less: tax effect of amortization of other intangible assets (a) | 356 | | 356 | | 464 | | 1,069 | | 1,393 Net income excluding amortization of other intangible assets | $ 33,947 | | $ 29,294 | | $ 31,223 | | $ 93,587 | | $ 80,266 | | | | | | | | | Days in the period | 92 | | 91 | | 92 | | 273 | | 273 Days in the year | 365 | | 365 | | 365 | | 365 | | 365 Annualized net income | $ 129,361 | | $ 112,119 | | $ 116,943 | | $ 119,748 | | $ 100,307 Annualized net income excluding amortization of other intangible assets | $ 134,681 | | $ 117,498 | | $ 123,874 | | $ 125,125 | | $ 107,315 | | | | | | | | | Average tangible equity: | | | | Total average stockholders' equity | $ 1,239,565 | | $ 1,228,192 | | $ 1,162,768 | | $ 1,228,786 | | $ 1,144,440 Less: average goodwill and other intangible assets | 389,131 | | 390,753 | | 396,636 | | 390,779 | | 398,956 Average tangible equity | $ 850,434 | | $ 837,439 | | $ 766,132 | | $ 838,007 | | $ 745,484 | | | | | | | | | Return on average stockholders' equity ratio: | | | | | Annualized net income | $ 129,361 | | $ 112,119 | | $ 116,943 | | $ 119,748 | | $ 100,307 Average stockholders' equity | $ 1,239,565 | | $ 1,228,192 | | $ 1,162,768 | | $ 1,228,786 | | $ 1,144,440 | | | | | | | | | Return on average stockholders' equity | 10.44 % | | 9.13 % | | 10.06 % | | 9.75 % | | 8.76 % | | | | | Return on average tangible equity ratio: | | | | | Annualized net income excluding amortization of other intangible assets | $ 134,681 | | $ 117,498 | | $ 123,874 | | $ 125,125 | | $ 107,315 Average tangible equity | $ 850,434 | | $ 837,439 | | $ 766,132 | | $ 838,007 | | $ 745,484 | | | | | | | | | Return on average tangible equity | 15.84 % | | 14.03 % | | 16.17 % | | 14.93 % | | 14.40 % (a) | Tax effect is calculated using a 21% statutory federal corporate income tax rate. 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