Peoples Bancorp (PEBO) investor relations material

Executive summary

• Adjusted diluted EPS of $0.96 exceeded consensus estimates, with reported diluted EPS of $0.78, impacted by an $8.2M loss from securities sales and $410K in acquisition expenses; net income for Q2 2026 was $28.0M.

• Net interest income rose 3% sequentially to $92.7M, with net interest margin expanding by 7 basis points to 4.23%.

• Fee-based income increased, and provision for credit losses declined 51% to $4.7M, with net charge-offs improving to 0.31% of average loans.

• Citizens merger integration is on track, with closing anticipated early Q4 2026 and early cross-business benefits observed.

• Non-core items reduced Q2 2026 EPS by $0.18; six-month net income was $57.0M ($1.59 per diluted share), up from $45.5M ($1.28) in 2025.

Financial highlights

• Net interest income for Q2 2026 was $92.7M, up $2.3M from Q1; net interest margin reached 4.23%.

• Fee-based income increased by over $340K quarter-over-quarter; non-interest income (excluding gains/losses) rose year-over-year.

• Provision for credit losses declined 51% to $4.7M; net charge-offs were $5.2M (0.31% of average loans annualized).

• Book value per share rose to $34.41; tangible book value per share increased to $23.56.

• Efficiency ratio improved to 58.3% from 58.6% sequentially.

Outlook and guidance

• Expects positive operating leverage for 2026 vs. 2025, excluding non-core and merger expenses.

• Net interest margin guidance for 2026 is 4.1%-4.3% in a stable rate environment.

• Quarterly fee-based income expected between $28M-$30M; non-interest expense $73M-$75M per quarter.

• Loan growth anticipated at the low end of 3%-5% range due to continued paydowns.

• Focus remains on expense control, asset threshold management, and Citizens merger integration.