Peoples Bancorp Inc. (NASDAQ:PEBO) said on Tuesday that it delivered fourth-quarter earnings ahead of market expectations, posting net income of $31.8 million, or $0.89 per diluted share, compared with analysts’ forecasts of $0.88 per share.
The Ohio-based lender improved on both the previous quarter, when earnings were $0.83 per share, and the same period a year earlier, which saw earnings of $0.76 per share. Quarterly revenue totaled $117.32 million, marginally below the consensus estimate of $117.98 million. Shares were little changed following the release, edging up around 0.1%.
“We are pleased with the results achieved in 2025, highlighted by positive operating leverage, excluding the impact of accretion income, and solid loan growth,” said Tyler Wilcox, president and chief executive officer.
Loan balances at the end of the period rose by $28.2 million, or 2% on an annualized basis, from the prior quarter, supported mainly by growth in commercial and industrial lending as well as construction loans. On a year-over-year basis, total loans increased by $398.9 million, representing growth of 6%.
Net interest income in the fourth quarter dipped slightly to $91.0 million from $91.3 million in the previous quarter, while the net interest margin narrowed to 4.12% from 4.16%. The bank booked a provision for credit losses of $8.1 million, up from $7.3 million in the third quarter.
Asset quality showed signs of improvement, with criticized loans falling by $31.9 million, or 12%, compared with the prior quarter. Nonperforming assets as a percentage of total loans and other real estate owned stood at 0.63% at December 31, 2025, down from 0.66% at the end of September.
Total deposits declined by $22.0 million quarter on quarter, pushing the loans-to-deposits ratio slightly higher to 89% from 88%.
“We remain focused on this momentum and commitment to delivering strong returns for our shareholders and community in 2026,” Wilcox added.