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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 driven by a strong Q4 2025 earnings beat, with EPS of $0.89 surpassing Wall Street estimates of $0.88. The company's revenue of $119.57 million also exceeded expectations. Additionally, Peoples Bancorp's Q4 2025 earnings call transcript highlighted a return on equity of 9.35% and a net margin of 16.57%. The firm's loan balances grew 2% annualized, while consumer deposits increased, and its net interest margin remained robust at 4.12%.

1.c. Company Highlights

2. Peoples Bancorp's Q4 2025 Earnings: A Closer Look

Peoples Bancorp Inc. reported diluted earnings per share of 89¢ for the fourth quarter, a 7% increase from the previous quarter, with actual EPS coming in at $0.889, slightly above estimates of $0.88. The company's net interest income remained relatively flat compared to the linked quarter, while the net interest margin declined four basis points. For the full year of 2025, net interest income improved 2% compared to 2024, while the net interest margin declined seven basis points. The efficiency ratio was 57.8% for the fourth quarter and 58.7% for the full year of 2025.

Publication Date: Jan -21

📋 Highlights
  • Q4 Diluted EPS Growth:: Increased to 89¢, a 7% rise from the linked quarter.
  • Loan Growth:: Achieved 6% annual growth, reaching the top end of prior guidance.
  • Efficiency Ratio:: Q4 ratio at 57.8%, reflecting improved operational efficiency compared to 58.7% for 2025.
  • Net Interest Margin (NIM):: Declined 4 basis points QoQ and 7 basis points YoY, with 2026 guidance at 4.2%.
  • 2026 Expense Guidance:: Quarterly non-interest expenses projected between $72 million and $74 million.

Loan Growth and Credit Quality

The company achieved loan growth of 6% compared to 2024, with full-year loan growth at the top end of previous guidance. The provision for credit losses totaled $8.1 million and was largely driven by net charge-offs. The allowance for credit losses stood at 1.12% of total loans, an increase from 1% at the prior year-end. Loan demand is expected to continue, driven by the company's strategic patience approach to M&A and its focus on delivering quality over quantity in its lending activities.

Outlook for 2026

For 2026, the company expects to achieve positive operating leverage, with a net interest margin between 4.2%. Analysts estimate next year's revenue growth at 3.2%. The company anticipates quarterly fee-based income between $28 million and $30 million, and quarterly total non-interest expense between $72 million and $74 million. Loan growth is expected to be between 3-5% compared to 2025, and a slight reduction in net charge-offs is anticipated.

Valuation and Dividend Yield

With a Price-to-Tangible Book Value (P/TBV) ratio of approximately 0.92, and a Dividend Yield of 5.16%, the company's valuation appears reasonable. The Net Interest Margin (NIM) is expected to be around 4% for the full year, with a slight decrease as the year progresses due to expected rate cuts.

Strategic Initiatives

The company plans to invest in data provision and data warehousing, talent, and technology to drive growth and efficiency. The company is investing heavily, with plans to spend over $10 billion on infrastructure and talent acquisition. These investments include hiring top talent in areas such as specialty finance businesses and continuing to build on existing systems.

Insurance Business and Leasing Portfolio

The company's insurance business had a good year, but growth was impacted by a decline in performance-based insurance income. The NorthStar leasing portfolio has been shrinking, and charge-offs have plateaued, but the company expects this to decline in 2026. The lease income run rate is around $15 million to $16 million, and the company expects this to continue into 2026.

3. NewsRoom

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SG Americas Securities LLC Invests $487,000 in Peoples Bancorp Inc. $PEBO

Jan -25

Source: defenseworld.net

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Peoples Bancorp (PEBO) Q4 Earnings: How Key Metrics Compare to Wall Street Estimates

Jan -21

Source: zacks.com

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Peoples Bancorp Inc. (PEBO) Q4 2025 Earnings Call Transcript

Jan -20

Source: seekingalpha.com

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Peoples Bancorp: Still An Income Buy

Jan -20

Source: seekingalpha.com

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Peoples Bancorp (NASDAQ:PEBO) Issues Quarterly Earnings Results, Beats Expectations By $0.01 EPS

Jan -20

Source: defenseworld.net

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PEOPLES BANCORP INC. DECLARES QUARTERLY DIVIDEND

Jan -20

Source: prnewswire.com

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PEOPLES BANCORP INC. ANNOUNCES FOURTH QUARTER AND ANNUAL RESULTS FOR 2025

Jan -20

Source: prnewswire.com

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PEOPLES BANCORP INC. ANNOUNCES RETIREMENT OF DOUGLAS V.

Jan -16

Source: prnewswire.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

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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

34.03$

Current Price

34.03$

Potential

-0.00%

Expected Cash-Flows