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1. Company Snapshot

1.a. Company Description

Peoples Bancorp Inc.operates as the holding company for Peoples Bank that provides commercial and retail banking products and services.The company accepts various deposit products, including demand deposit accounts, savings accounts, money market accounts, and certificates of deposit; and provides commercial and industrial, commercial real estate, construction, finance, residential real estate, and consumer indirect and direct loans, as well as home equity lines of credit and overdrafts.


It also offers debit and automated teller machine (ATM) cards; safe deposit rental facilities; money orders and cashier's checks; and telephone, mobile, and Internet-based banking services.In addition, the company provides various life, health, and property and casualty insurance products; third-party insurance administration; insurance premium financing; commercial and technology equipment leasing; fiduciary and trust; underwriting, origination and servicing of equipment leases, and equipment financing agreements; and asset management and administration services, as well as employee benefit, retirement, and health care plan administration services.Further, it offers brokerage services through an unaffiliated registered broker-dealers; insurance premium finance lending and lease financing services; and credit cards to individuals and businesses, as well as provides merchant credit card transaction processing, and person-to-person payment processing services.


The company operates through 135 financial service offices and ATMs, including 119 full-service branches in Ohio, West Virginia, Kentucky, Virginia, Washington, D.C., and Maryland.Peoples Bancorp Inc.was founded in 1902 and is based in Marietta, Ohio.

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1.b. Last Insights on PEBO

Peoples Bancorp Inc.'s recent performance was negatively impacted by its Q2 earnings miss, with EPS of $0.6 per share, falling short of the Zacks Consensus Estimate of $0.78 per share. The company's net income totaled $21.2 million, representing earnings per diluted common share of $0.59. Despite this, the bank reported healthy loan growth, low deposit costs, and a robust net interest margin. However, higher credit loss allowances and a relatively high payout ratio of 69.0% for its quarterly dividend may have raised concerns among investors.

1.c. Company Highlights

2. Peoples Bancorp's Q3 Earnings: A Closer Look

Peoples Bancorp reported diluted earnings per share of $0.83 for the third quarter, an improvement compared to the linked quarter. The company's net interest income increased by nearly $4,000,000, and its net interest margin expanded by one basis point. The quarterly net charge-off rate decreased by two basis points, and noninterest expenses declined 1%. The company's annualized loan growth was 8%, which outpaced its deposit growth, bringing the loan-to-deposit ratio to 88% from 86% at June 30.

Publication Date: Nov -19

📋 Highlights
  • Earnings Growth:: Diluted earnings per share rose to $0.83 for Q3 2025, reflecting operational improvements and cost efficiency.
  • Loan Expansion:: Annualized loan growth reached 8%, with a loan-to-deposit ratio increasing to 88% from 86% in Q2.
  • Net Interest Income:: Increased by nearly $4,000,000, driven by a 4% rise and a 1-basis-point net interest margin expansion.
  • Credit Risk Reduction:: Provision for credit losses fell over $9,000,000, with a net charge-off rate declining to 41 basis points.
  • Future Guidance:: Anticipated 2026 net interest margin of 4.2% and loan growth of 4-6% compared to 2024, excluding rate cuts.

Financial Performance

The company's net interest income and net interest margin improved by 4% and one basis point, respectively, compared to the linked quarter. The investment securities yield improved to 3.79% compared to 3.52% for the linked quarter. Excluding accretion income, the net interest margin expanded by five basis points, marking the fifth straight quarterly increase in core net interest margin. As Katie Bailey noted, "Our investment securities yield improved to 3.79% compared to 3.52% for the linked quarter."

Asset Quality and Credit Losses

The company's provision for credit losses declined over $9,000,000, and its allowance for credit losses stood at 1.11% of total loans. The annualized quarterly net charge-off rate was 41 basis points, an improvement from 43 basis points for the linked quarter. Nonperforming loans declined nearly $2,000,000 compared to the linked quarter end. Tyler Wilcox mentioned that they expect some refinances, property sales, and upgrades or payoffs in the criticized and classified loans in the fourth quarter.

Outlook and Valuation

For 2026, the company expects to achieve positive operating leverage compared to 2025, with a net interest margin of around 4.2%. The company's guidance implies a stable financial performance, with a focus on organic growth and potential acquisitions. With a Price-to-Tangible Book Value (P/TBV) of around 0.84, the stock appears reasonably valued. The Dividend Yield is 5.76%, which is attractive for income investors.

Growth Prospects

The company expects loan growth to accelerate in the coming year, particularly in a falling rate environment. This can lead to increased sales of completed projects, refinance activity, and investors moving projects to the permanent market. The company's premium finance business has high origination yields, and they expect to see some growth in this area. With a Return on Equity (ROE) of 8.89%, the company is generating decent returns for its shareholders.

3. NewsRoom

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Peoples Bancorp: A 5.5% Yielding Regional Bank To Consider

Dec -01

Source: seekingalpha.com

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Peoples Bancorp Inc. $PEBO Stock Holdings Increased by Creative Planning

Nov -29

Source: defenseworld.net

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Head-To-Head Analysis: Independent Bank (NASDAQ:IBCP) vs. Peoples Bancorp (NASDAQ:PEBO)

Nov -23

Source: defenseworld.net

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Connor Clark & Lunn Investment Management Ltd. Cuts Holdings in Peoples Bancorp Inc. $PEBO

Nov -21

Source: defenseworld.net

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Peoples Bancorp Inc. (NASDAQ:PEBO) Receives $33.13 Consensus Target Price from Analysts

Nov -16

Source: defenseworld.net

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Peoples Bank OH Buys 5,093 Shares of NVIDIA Corporation $NVDA

Oct -22

Source: defenseworld.net

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Peoples Bancorp Inc. (PEBO) Q3 2025 Earnings Call Transcript

Oct -21

Source: seekingalpha.com

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Peoples Bancorp (PEBO) Q3 Earnings: How Key Metrics Compare to Wall Street Estimates

Oct -21

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.00%)

6. Segments

Community Banking

Expected Growth: 3.0%

Peoples Bancorp Inc.'s 3.0% growth in Community Banking is driven by strategic branch expansions, increased commercial lending, and a focus on customer relationships. Additionally, investments in digital banking platforms and mobile banking apps have enhanced customer experience, contributing to deposit growth and loan origination increases.

7. Detailed Products

Commercial Banking

Provides financial solutions to businesses, including cash management, lending, and treasury management services.

Consumer Banking

Offers personal banking services, including checking and savings accounts, credit cards, and personal loans.

Mortgage Banking

Provides mortgage lending services to individuals and families, including purchase and refinance loans.

Wealth Management

Offers investment and wealth management services, including financial planning, investment management, and trust services.

Insurance

Provides insurance products, including life insurance, long-term care insurance, and annuities.

Treasury Management

Offers cash management and treasury management services to businesses, including account management and payment processing.

8. Peoples Bancorp Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Peoples Bancorp Inc. is medium due to the presence of alternative financial institutions and digital banking platforms.

Bargaining Power Of Customers

The bargaining power of customers is low for Peoples Bancorp Inc. as customers have limited negotiating power due to the bank's strong brand and market presence.

Bargaining Power Of Suppliers

The bargaining power of suppliers is medium for Peoples Bancorp Inc. as the bank relies on a network of suppliers for its operations, but has some negotiating power due to its size and market presence.

Threat Of New Entrants

The threat of new entrants is low for Peoples Bancorp Inc. due to the high barriers to entry in the banking industry, including regulatory hurdles and capital requirements.

Intensity Of Rivalry

The intensity of rivalry is high for Peoples Bancorp Inc. due to the competitive nature of the banking industry, with many established players vying for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 42.24%
Debt Cost 4.05%
Equity Weight 57.76%
Equity Cost 7.72%
WACC 6.17%
Leverage 73.12%

11. Quality Control: Peoples Bancorp Inc. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

30.26$

Current Price

30.26$

Potential

-0.00%

Expected Cash-Flows