Peoples Bancorp Inc. (NASDAQ:PEBO) reported third-quarter results on Tuesday that were broadly in line with Wall Street expectations, as robust loan growth helped counter ongoing pressure on interest margins.
The Ohio-based bank posted diluted earnings per share of $0.83, matching analyst forecasts. Total revenue reached $115.18 million, slightly shy of the $116.88 million consensus estimate. Net income came in at $29.5 million, rising from $21.2 million in the previous quarter but falling short of the $31.7 million reported a year earlier.
Loan and lease balances at the end of the quarter grew by $127.1 million, an annualized increase of 8% compared to Q2. Net interest income rose $3.8 million, or 4%, quarter over quarter, supported by stronger yields on investment securities and larger loan volumes.
“We continued to experience high loan growth and had improvements in several key financial metrics during the third quarter,” said Tyler Wilcox, President and Chief Executive Officer. “We look to maintain our momentum going into the fourth quarter and to drive shareholder value in future periods.”
Net interest margin ticked up slightly to 4.16% from 4.15% in the prior quarter but remained below the 4.27% recorded in Q3 2024, underscoring persistent margin pressures.
The provision for credit losses dropped sharply to $7.3 million from $16.6 million in Q2, while net charge-offs declined to $6.8 million, representing 0.41% of average total loans on an annualized basis.
Asset quality also showed improvement: nonperforming assets fell by $1.8 million, or 4%, compared to the prior quarter. Total deposits held steady, easing by just $5 million from the second quarter.