PEOPLES BANCORP INC. ANNOUNCES RESULTS FOR THE THIRD QUARTER 2026

EmitenTrust.com MARIETTA, Ohio, Oct. 20, 2026 /PRNewswire/ -- Peoples Bancorp Inc. ("Peoples") (NASDAQ: PEBO) today announced results for the quarter ended September 30, 2026. Net income totaled $32.6 million for the third quarter of 2026, representing earnings per diluted common share of $0.91. In comparison, Peoples reported net income of $28.0 million, representing earnings per diluted common share of $0.78, for the second quarter of 2026 and net income of $29.5 million, representing earnings per diluted common share of $0.83, for the third quarter of 2025. Non-core items, which include one-time losses and acquisition-related expenses, negatively impacted earnings per diluted common share by $0.13 for the third quarter of 2026, $0.18 for the second quarter of 2026, and $0.07 for the third quarter of 2025.

"We are very pleased with our strong performance for the third quarter of 2026, highlighted by continued improvement in our net interest margin, net interest income, our fee-based revenue streams, and overall profitability," said Tyler Wilcox, President and Chief Executive Officer. "Our results reflect disciplined execution, and we remain committed to maintaining our momentum through the fourth quarter to close the year in a strong financial position."

Citizens Acquisition:

On April 21, 2026, Peoples announced the signing of a definitive agreement and plan of merger pursuant to which Peoples will acquire Citizens National Corporation ("Citizens"), a bank holding company headquartered in Paintsville, Kentucky, and the parent company of Citizens Bank of Kentucky, Inc. ("Citizens Bank"), in a cash and stock transaction. Under the terms of the merger agreement, Citizens will merge with and into Peoples, and Citizens Bank will subsequently merge with and into Peoples' wholly owned subsidiary, Peoples Bank, in a transaction valued at approximately $76.6 million. As of September 30, 2026, Peoples recognized $0.9 million in acquisition-related expenses associated with this pending transaction.

Capital Acquisition:

On September 30, 2026, Peoples announced the signing of a definitive agreement and plan of merger pursuant to which Peoples will acquire Capital Bancorp, Inc. ("Capital"), a bank holding company headquartered in Rockville, Maryland, and the parent company of Capital Bank, N.A., in an all stock transaction. Under the terms of the merger agreement, Capital will merge with and into Peoples, and Capital Bank, N.A. will subsequently merge with and into Peoples Bank, in a transaction valued at approximately $728.1 million. As of September 30, 2026, Peoples recognized $1.0 million in acquisition-related expenses associated with this pending transaction.

Quarterly Highlights:

• Net interest margin for the third quarter of 2026 increased to 4.31% when compared to 4.23% for the linked quarter driven by increased investment and loan yields.
  • Net interest income increased $1.1 million compared to the linked quarter driven by higher loan income.
• Provision for credit losses decreased $1.1 million when compared to the linked quarter.
  • The reduction in the provision for credit losses was due to declines in reserves for individually-analyzed loans and leases, coupled with updates to prepayment, curtailment, and funding rates, partially offset by higher net charge-offs.
• Period-end total loan and lease balances at September 30, 2026, increased $19.2 million, or 1% annualized, when compared to the linked quarter.
  • The loan growth was largely due to increases in construction loans, commercial and industrial loans, and home equity lines of credit, partially offset by decreases in other commercial real estate loans, residential real estate loans, and leases.
• Total non-interest income, excluding net gains and losses, increased $1.5 million, or 5%, for the third quarter of 2026 compared to the linked quarter.
  • The growth was due to increases in lease income, driven by gains on terminated leases, other non-interest income, driven by swap fee income, deposit account service charges, trust and investment income, and bank owned life insurance income.
• Total period-end core deposits, which excludes brokered deposits, increased $19.2 million compared to the linked quarter.
  • The increase was attributable to increases in interest-bearing demand accounts and money market deposit accounts, partially offset by decreases in retail certificates of deposit and non-interest bearing deposits.

Net Interest Income

Net interest income was $93.8 million for the third quarter of 2026, which increased by $1.1 million compared to the linked quarter. Net interest margin was 4.31% for the third quarter of 2026, compared to 4.23% for the linked quarter. The increase in net interest income was driven by higher loan income, while the increase in net interest margin was driven by higher investment and loan yields.

Net interest income for the third quarter of 2026 increased $2.5 million, or 3%, compared to the third quarter of 2025. Net interest margin increased 15 basis points when compared to the third quarter of 2025. The increases in net interest income and net interest margin were primarily driven by lower deposit and borrowing costs compared to the third quarter of 2025.

Accretion income, net of amortization expense, from acquisitions was $1.0 million for the third quarter of 2026, $1.1 million for the linked quarter and $1.7 million for the third quarter of 2025, which added four basis points, five basis points and eight basis points, respectively, to net interest margin. The decrease in accretion income for the third quarter of 2026 when compared to the linked quarter and third quarter of 2025 was driven by less accretion income recognized in the current period from the 2023 merger with Limestone Bancorp, Inc.

For the first nine months of 2026, net interest income increased $12.8 million compared to the same period of 2025, while net interest margin increased eight basis points to 4.23%. The increases in net interest income and net interest margin were driven by lower deposit costs compared to the first nine months of 2025.

Accretion income, net of amortization expense, was $3.4 million for the first nine months of 2026, compared to $7.8 million of accretion income recognized in the first nine months of 2025. Accretion income contributed five basis points and 12 basis points to net interest margin in the first nine months of 2026 and 2025, respectively.

Provision for Credit Losses:

The provision for credit losses was $3.6 million for the third quarter of 2026, compared to $4.7 million for the linked quarter, and $7.3 million for the third quarter of 2025. The provision for credit losses for the third quarter of 2026 was driven by net charge-offs, partially offset by a decrease in reserves for individually-analyzed loans and leases and updates to prepayment, curtailment, and funding rates. The provision for credit losses for the linked quarter was primarily driven by net charge-offs and an increase in reserves for individually analyzed loans and leases, partially offset by a reduction of balances within higher loss rate segments. The provision for credit losses for the third quarter of 2025 was primarily driven by (i) net charge-offs, (ii) loan growth, and (iii) a slight deterioration in the economic forecasts used within the current expected credit loss ("CECL") model, partially offset by reductions in reserves for individually analyzed loans and leases.

The provision for credit losses during the first nine months of 2026 was $18.0 million and was primarily driven by net charge-offs and a deterioration of macroeconomic conditions used within the CECL model, partially offset by updates to prepayment, curtailment, and funding rates, and a reduction in balances of loans and leases within higher loss rate segments. The provision for credit losses for the same period of 2025 was $34.1 million and was mainly a result of (i) net charge-offs, (ii) an increase in reserves for individually analyzed loans and leases, (iii) an increase in reserves for leases originated by the North Star Leasing division, (iv) deterioration in the economic forecasts used within the CECL model, and (v) loan growth.

The provision for credit losses recorded represents the amount needed to maintain the appropriate level of the allowance for credit losses based on management's quarterly estimates. The provision for credit losses negatively impacted earnings per diluted common share by $0.08 for the third quarter of 2026, $0.10 for the second quarter of 2026, and $0.16 for the third quarter of 2025. The provision for credit losses negatively impacted earnings per diluted common share by $0.39 and $0.75 for the first nine months of 2026 and 2025, respectively.

For additional information on net charge-offs, credit trends and the allowance for credit losses, see the "Asset Quality" section below.

Net Gains and Losses:

Net gains and losses include gains and losses on investment securities, asset disposals and other transactions, which are included in total non-interest income on the Consolidated Statements of Income. The net loss for the third quarter of 2026 was $4.8 million, compared to a net loss of $8.6 million for the linked quarter, and a net loss of $3.1 million for the third quarter of 2025. The net loss for each of the third and second quarter of 2026 was driven by the sale of $58.5 million of available-for-sale securities at a net loss of $4.5 million and the sale of $135.2 million of available-for-sale investment securities at a net loss of $8.2 million, respectively, as Peoples continued to manage its balance sheet under $10 billion in assets ahead of the Citizens merger.  The net loss for the third quarter of 2025 was driven by a $2.7 million net loss on the sale of lower yielding available-for-sale securities.

The net losses realized during the first nine months of 2026 and 2025 were $13.9 million and $3.7 million, respectively. The net loss for the first nine months of 2026 was driven by the aforementioned investment portfolio restructures during the second and third quarters. The net loss for the first nine months of 2025 was primarily driven by the $2.7 million net loss on the sale of lower yielding available-for-sale investment securities.

Total Non-interest Income, Excluding Net Gains and Losses:

Total non-interest income, excluding net gains and losses, for the third quarter of 2026 increased $1.5 million compared to the linked quarter. The increase in non-interest income, excluding net gains and losses, was primarily impacted by increases of $0.7 million in lease income, driven by an increase in gains on terminated leases, $0.2 million in other non-interest income, driven by swap fee income, $0.2 million in deposit account service charges, and $0.2 million in trust and investment income, driven by higher assets under management. Total non-interest income, excluding net gains and losses, for the third quarter of 2026 was 25% of total revenue (defined as net interest income plus total non-interest income excluding net gains and losses), compared to 24% for the linked quarter.

Compared to the third quarter of 2025, total non-interest income, excluding net gains and losses, increased $3.6 million due to increases of $2.1 million in lease income, driven by higher operating lease income and gains on terminated leases, $0.8 million in trust and investment income, driven by an increase in assets under administration and management, $0.4 million in deposit account services charges, and $0.3 million in mortgage banking income, partially offset by a decrease of $0.2 million in insurance income.

During the first nine months of 2026, total non-interest income, excluding gains and losses, increased $6.6 million, or 8%, when compared to the same period of 2025. The increase was primarily due to increases of $3.9 million in lease income, driven by operating lease income, $2.0 million in trust and investment income, driven by an increase in assets under administration and management, $1.1 million in deposit account service charges, and $0.7 million in mortgage banking income, partially offset by decreases of $0.9 million in both insurance income and other non-interest income, driven by lower swap fee income.

Total Non-interest Expense:

Total non-interest expense increased $1.8 million for the third quarter of 2026, compared to the linked quarter. The increase in total non-interest expense was primarily due to increases of $0.7 million in professional fees, driven by acquisition-related expenses, $0.5 million in salaries and employee benefits costs, driven by an increase in sales-based incentives, $0.4 million in marketing expense, due to a vendor incentive received in the second quarter of 2026, and $0.2 million in operating lease expense, which were partially offset by a decrease of $0.1 million in travel and entertainment expense, driven by timing of travel.

Compared to the third quarter of 2025, total non-interest expense increased $4.6 million. The increase in total non-interest expense was primarily driven by increases of $1.9 million in professional fees, driven by acquisition-related expenses, $1.9 million in salaries and benefit costs due to annual merit increases coupled with higher sales levels and overall company performance measures used in calculating incentive awards, $1.0 million in operating lease expense, $0.5 million in data processing and software expense due to costs associated with recent technology projects, partially offset by a decrease of $0.5 million in amortization of other intangible assets, driven by decreases in amortization on core deposits and customer relationship intangibles.

For the first nine months of 2026, total non-interest expense increased $7.9 million, when compared to the same period of 2025. This increase was primarily driven by increases of $3.0 million in salaries and employee benefit costs due to annual merit increases and an increase in sales incentives, $2.5 million in operating lease expense, driven by the increase in operating lease volume, $2.0 million in professional fees, driven by acquisition-related expenses, and $1.6 million in data processing and software expenses driven by recent technology projects, partially offset by a decrease of $1.5 million in amortization of other intangible assets, due to decreases in amortization on core deposits and customer relationship intangibles.

The table below summarizes the amount of acquisition-related expenses for each line item that is a component of non-interest expense. Acquisition-related expenses are considered a non-core non-interest expense by Peoples. This information is used by Peoples to provide information useful to investors in understanding Peoples' operating performance and trends.

The efficiency ratio for the third quarter of 2026 was 58.5%, compared to 58.3% for the linked quarter and 57.1% for the third quarter of 2025. The efficiency ratio increased slightly compared to the linked quarter mainly as the result of higher non-interest expense, largely driven by acquisition-related expenses. The efficiency ratio for the first nine months of 2026 was 58.5%, compared to 59.0% for the same period of 2025. The efficiency ratio improved compared to the same period of 2025 due to higher revenue. The efficiency ratio adjusted for non-core items was 57.3% and 57.9% for the third and second quarters of 2026, respectively. Peoples continues to focus on controlling expenses, while recognizing necessary costs in order to continue growing the business. 

Income Tax Expense:

Peoples recorded income tax expense of $8.8 million with an effective tax rate of 21.2% for the third quarter of 2026, compared to income tax expense of $7.7 million with an effective tax rate of 21.6% for the linked quarter and income tax expense of $8.5 million with an effective tax rate of 22.4% for the third quarter of 2025. Income tax expense for each of the first nine months of 2026 and 2025 was $24.8 million and $21.8 million, respectively, with an associated effective tax rate of 21.7% and 22.5%, respectively. The increase in income tax expense when compared to the linked quarter was driven by higher pretax income in the third quarter of 2026 and a $0.5 million benefit relating to tax credits purchased in the second quarter of 2026. The increase in income tax expense when compared to the nine month period ended September 30, 2025, was driven by higher pretax income.

Investment Securities and Liquidity:

Peoples' investment portfolio primarily consists of available-for-sale investment securities reported at fair value and held-to-maturity investment securities reported at amortized cost. The available-for-sale investment securities balance at September 30, 2026, decreased $68.9 million when compared to at June 30, 2026, decreased $179.2 million when compared to at December 31, 2025, and decreased $171.8 million when compared to at September 30, 2025. The decrease in available-for-sale investment securities compared to all prior periods was driven by the aforementioned sales of available-for-sale investment securities. The unrealized losses, net of tax, on available-for-sale investment securities recognized within accumulated other comprehensive loss were $99.8 million at September 30, 2026, $71.2 million at June 30, 2026, $71.0 million at December 31, 2025, and $90.9 million at September 30, 2025. The increase in accumulated other comprehensive loss compared to the linked quarter was the result of the changes in the market value of available-for-sale investment securities during the period. At September 30, 2026, Peoples' investment securities represented approximately 18.3% of total assets, compared to 19.1% at June 30, 2026, and 20.5% at both December 31, 2025 and September 30, 2025. As of the third quarter of 2026, the decrease in the percentage of investment securities was mainly due to the aforementioned available-for-sale investment restructures.

The held-to-maturity investment securities balance at September 30, 2026, increased $10.7 million when compared to at June 30, 2026, decreased $44.8 million when compared to at December 31, 2025, and decreased $53.7 million when compared to at September 30, 2025. The increase when compared to the linked quarter was driven by purchases of higher yielding, longer duration securities for pledging purposes as market rates impacted the market value of pledged securities during the quarter. The decrease when compared to December 31, 2025 and September 30, 2025 was driven by prepayments and maturities of collateralized mortgage obligations.

The effective durations of the available-for-sale investment securities and the held-to-maturity investment securities as of September 30, 2026, were approximately 6.15 and 7.46 years, respectively. The duration of Peoples' investments is managed as part of Peoples' Asset Liability Management program and has the potential to impact both liquidity and capital, as mismatches in duration may require a liquidation of investment securities at market prices to meet funding needs. These assets are a component of Peoples' liquidity profile.

Peoples maintains a number of liquid and liquefiable assets, borrowing capacity, and other sources of liquidity to ensure the availability of funds. At September 30, 2026, Peoples had liquid and liquefiable assets totaling $667.9 million, which included (i) cash and cash equivalents, (ii) unpledged government and agency investment securities and (iii) unpledged non-agency investment securities that could be liquidated. At September 30, 2026, Peoples had a total borrowing capacity of $654.3 million available through the Federal Home Loan Bank ("FHLB"), the Federal Reserve Bank ("FRB"), and federal funds. Additionally, at September 30, 2026, Peoples had contingent sources of liquidity totaling $3.8 billion. Contingent sources of liquidity are generally comprised of borrowing capacity at the FHLB and FRB, unpledged securities, liquifiable securities, and available capacity from wholesale funding sources. Cash and cash equivalents increased $111.8 million when compared to December 31, 2025, as the level of cash fluctuates given Peoples' total liquidity position.

Loans and Leases:

The period-end total loan and lease balances at September 30, 2026, increased $19.2 million, or 1% annualized, compared to at June 30, 2026. The increase in loans was driven by increases of $40.4 million in construction loans, $34.3 million in commercial and industrial loans, and $10.2 million in home equity lines of credit, partially offset by decreases of $38.4 million in other commercial real estate loans, $13.8 million in residential real estate loans, and $11.6 million in leases.

Total loans and leases increased by $83.9 million, or 1%, when compared to at December 31, 2025. The loan growth was driven by increases of $188.4 million in commercial and industrial loans, $33.8 million in construction loans, and $30.3 million in home equity lines of credit, partially offset by decreases of $119.2 million in other commercial real estate loans, $29.1 million in residential real estate loans, and $23.3 million in leases.

The period-end total loan and lease balances at September 30, 2026, increased $112.1 million, or 2%, compared to at September 30, 2025, driven by increases of $234.6 million in commercial and industrial loans and $73.7 million in construction loans, partially offset by decreases of $124.7 million in other commercial real estate loans, $43.1 million in residential real estate loans, and $40.4 million in leases.

Quarterly average total loan balances increased $35.0 million compared to the linked quarter and $175.2 million when compared to the prior year quarter. The increase in average total loan balances when compared to the linked quarter was primarily the result of increases of $42.7 million in commercial and industrial loans, $28.7 million in construction loans, and $23.4 million in premium finance loans, partially offset by decreases of $46.7 million and $11.2 million in other commercial real estate loans and residential real estate loans, respectively. The increase in average total loans when compared to the prior year quarter was driven by increases of $266.7 million in commercial and industrial loans and $34.6 million in home equity lines of credit, partially offset by decreases of $58.0 million, $44.3 million, and $22.2 million in residential real estate loans, leases, and construction loans, respectively.

For the first nine months of 2026, the average total loan balances increased $294.9 million compared to the first nine months of 2025. The increase in average total loan balances was primarily the result of increases of $270.9 million in commercial and industrial loans, $96.2 million in other commercial real estate loans, and $28.7 million in home equity lines of credit, partially offset by decreases of $38.4 million and $32.6 million in leases and construction loans, respectively.

Asset Quality:

Key asset quality metrics were stable during the third quarter of 2026. Delinquency trends improved as loans considered current comprised 99.2%, 99.1%, and 99.0% of the loan portfolio at September 30, 2026, at June 30, 2026, and at September 30, 2025, respectively. Total nonperforming assets at September 30, 2026, decreased $4.1 million, or 10%, compared to at June 30, 2026, and decreased $7.8 million, or 18%, compared to at September 30, 2025. The decrease in nonperforming assets compared to at June 30, 2026, was driven by reductions in nonaccrual leases of $2.0 million, other commercial real estate loans of $1.8 million, and commercial and industrial loans of $1.3 million, partially offset by an increase in residential real estate loans 90+ days past due and accruing of $1.2 million. Compared to at September 30, 2025, nonperforming assets decreased because of the sale of an OREO property in the fourth quarter of 2025, coupled with reductions in nonaccrual leases, partially offset by increases in other commercial real estate loans 90+ days past due and accruing. Nonperforming assets as a percent of total loans and OREO was 0.54% at September 30, 2026, compared to 0.60% at June 30, 2026, and 0.66% at September 30, 2025.

Criticized loans, which are those categorized as special mention, substandard, doubtful or loss decreased $17.7 million, or 6%, compared to at June 30, 2026, and decreased $12.3 million, or 5%, compared to at September 30, 2025. As a percent of total loans, criticized loans were 3.74% at September 30, 2026, compared to 4.01% at June 30, 2026, and 3.99% at September 30, 2025. The decrease in the amount of criticized loans compared to at June 30, 2026, and at September 30, 2025, was driven by loan upgrades and paydowns.

Classified loans, which are those categorized as substandard, doubtful or loss increased $30.1 million, or 21%, compared to at June 30, 2026, and increased $12.3 million, or 8%, compared to at September 30, 2025. As a percent of total loans, classified loans were 2.50% at September 30, 2026, compared to 2.06% at June 30, 2026, and 2.36% at September 30, 2025. The increase in classified loans compared to at June 30, 2026, and at September 30, 2025, was primarily driven by loan downgrades.

Annualized net charge-offs were 0.35% of average total loans for the third quarter of 2026, compared to 0.31% for the linked quarter, and 0.41% for the third quarter of 2025. Compared to the linked quarter, net charge-offs increased because of increased net charge-offs in commercial and industrial loans associated with one customer relationship. Compared to the prior year third quarter, net charge-offs decreased driven by a reduction in net charge-offs by North Star Leasing, partially offset by increases in net charge-offs of other commercial real estate loans and commercial and industrial loans.

At September 30, 2026, the allowance for credit losses decreased $2.4 million when compared to at June 30, 2026, and increased $0.9 million when compared to at September 30, 2025. The ratio of the allowance for credit losses as a percent of total loans was 1.11% at September 30, 2026, compared to 1.14% at June 30, 2026, and 1.11% at September 30, 2025. The ratio of allowance for credit losses as a percentage of non-performing loans was 206.83% at September 30, 2026, compared to 190.78% at June 30, 2026, and 193.01% at September 30, 2025.

Deposits:

As of September 30, 2026, period-end core deposits, which exclude brokered deposits, increased $19.2 million compared to at June 30, 2026. The increase in core deposits was attributable to increases of $51.9 million in interest-bearing demand accounts and $46.4 million in money market deposit accounts, partially offset by decreases of $44.4 million in retail certificates of deposit and $33.6 million in non-interest bearing deposits.

Compared to at December 31, 2025, period-end core deposit balances increased $55.8 million. The increase was primarily driven by increases of $96.6 million in money market deposit accounts, $54.5 million in interest-bearing demand deposits, $26.4 million in savings accounts, and $15.6 million in governmental deposits, partially offset by a decrease of $152.1 million in retail certificates of deposits.

Compared to at September 30, 2025, period-end core deposit balances increased $34.6 million. The increase in core deposits was primarily driven by increases of $93.7 million in money market deposit accounts, $78.3 million in interest-bearing demand accounts, $29.6 million in savings accounts, and $24.1 million in non-interest bearing deposits, partially offset by a decrease of $177.0 million in retail certificates of deposit.

The total deposit balances attributable to retail deposits and commercial deposits were 78% and 22%, respectively, at both September 30, 2026 and June 30, 2026, and 77% and 23%, respectively, at September 30, 2025.

Uninsured deposits were 27% of total deposits for each period ending at September 30, 2026, at June 30, 2026, and at September 30, 2025. Uninsured amounts were based on the portion of customer account balances that exceeded the FDIC limit of $250,000. Peoples pledges investment securities against certain governmental deposit accounts, which collateralized $574.8 million, or 28%, $595.7 million, or 30%, and $660.0 million, or 32%, of the uninsured deposit balances at September 30, 2026, at June 30, 2026, and at September 30, 2025, respectively.

Average deposit balances during the third quarter of 2026 decreased $65.7 million when compared to the linked quarter and decreased $232.4 million when compared to the third quarter of 2025. The decrease over the linked quarter was driven by decreases of $66.0 million in governmental deposit accounts, $60.8 million in retail certificates of deposit, and $24.8 million in interest-bearing demand accounts, partially offset by increases of $59.0 million and $23.1 million in brokered deposits and money market deposit accounts, respectively. The decrease when compared to the third quarter of 2025 was driven by decreases of $186.7 million in brokered deposits and $150.9 million in retail certificates of deposit, partially offset by increases of $66.2 million, $38.8 million, and $26.3 million in non-interest bearing deposits, money market deposit accounts, and savings accounts, respectively. Total demand deposit accounts comprised 36% of total deposits at September 30, 2026, 36% at June 30, 2026, and 33% at September 30, 2025.

For the first nine months of 2026, average deposit balances decreased $113.8 million when compared to the first nine months of 2025. The decrease was primarily a result of decreases of $176.1 million in brokered deposits and $66.5 million in retail certificates of deposits, partially offset by increases of $85.4 million, $27.6 million, and $26.2 million in non-interest bearing deposits, money market deposit accounts, and savings accounts, respectively.

Stockholders' Equity:

Total stockholders' equity at September 30, 2026, decreased $8.6 million, or 1%, compared to at June 30, 2026. This change was primarily driven by an increase of $28.5 million in accumulated other comprehensive loss and dividends paid of $15.1 million during the third quarter of 2026, partially offset by net income of $32.6 million. The increase in accumulated other comprehensive loss was the result of the changes in the market value of available-for-sale investment securities during the period.

Total stockholders' equity at September 30, 2026 increased $21.3 million, or 2%, when compared to at December 31, 2025. This change was driven by net income of $89.6 million, partially offset by an increase of $28.8 million in accumulated other comprehensive loss during the quarter and dividends paid of $44.9 million.

Total stockholders' equity at September 30, 2026, increased $45.1 million, or 4%, compared to at September 30, 2025, which was due to net income of $121.3 million for the last twelve months, partially offset by an increase in other comprehensive loss of $21.8 million and dividends paid of $59.5 million.

Peoples Bancorp Inc. ("Peoples", Nasdaq: PEBO) is a diversified financial services holding company and makes available a complete line of banking, trust and investment, insurance and specialty financing solutions through its subsidiaries. Headquartered in Marietta, Ohio, since 1902, Peoples has established a heritage of financial stability, growth and community impact. Peoples had $9.7 billion in total assets as of September 30, 2026, and 144 locations, including 127 full-service bank branches in Ohio, West Virginia, Kentucky, Virginia, Washington D.C., and Maryland. Peoples' vision is to be the Best Community Bank in America.

Peoples is a member of the Russell 3000 index of United States ("U.S.") publicly-traded companies. Peoples offers services through Peoples Bank (which includes the divisions of Peoples Investment Services, Peoples Premium Finance, Peoples Life Premium Finance, and North Star Leasing), Peoples Insurance Agency, LLC, and Vantage Financial, LLC.

Conference Call to Discuss Earnings:

Peoples will conduct a facilitated conference call to discuss third quarter 2026 results of operations on October 20, 2026, at 11:00 a.m., Eastern Time, with members of Peoples' executive management participating. Analysts, media and individual investors are invited to participate in the conference call by calling (866) 890-9285. A simultaneous webcast of the conference call audio and earnings conference call presentation will be available online via the "Investor Relations" section of Peoples' website, www.peoplesbancorp.com. Participants are encouraged to call or sign in at least 15 minutes prior to the scheduled conference call time to ensure participation and, if required, to download and install the necessary software. A replay of the call will be available on Peoples' website in the "Investor Relations" section for one year.

Use of Non-US GAAP Financial Measures:

This news release contains financial information and performance measures determined by methods other than those in accordance with accounting principles generally accepted in the United States of America ("US GAAP"). Management uses these "non-US GAAP" financial measures in its analysis of Peoples' performance and the efficiency of its operations. Management believes that these non-US GAAP financial measures provide a greater understanding of ongoing operations and enhance comparability of results with prior periods and peers. These disclosures should not be viewed as substitutes for financial measures determined in accordance with US GAAP, nor are they necessarily comparable to non-US GAAP performance measures that may be presented by other companies. Below is a listing of the non-US GAAP financial measures used in this news release:

• Core non-interest expense is a non-US GAAP financial measure since it excludes the impact of acquisition-related expenses.
• The efficiency ratio is calculated as total non-interest expense (less amortization of other intangible assets) as a percentage of fully tax-equivalent net interest income plus total non-interest income, excluding net gains and losses. This ratio is a non-US GAAP financial measure since it excludes amortization of other intangible assets and all gains and losses included in earnings, and uses fully tax-equivalent net interest income.
• The efficiency ratio adjusted for non-core items is calculated as core non-interest expense (less amortization of other intangible assets) as a percentage of fully tax-equivalent net interest income plus total non-interest income, excluding net gains and losses. This ratio is a non-US GAAP financial measure since it excludes the impact of acquisition-related expenses and the amortization of other intangible assets and all gains and losses included in earnings, and uses fully tax-equivalent net interest income.
• Tangible assets, tangible equity, the tangible equity to tangible assets ratio, and tangible book value per common share are non-US GAAP financial measures since they exclude the impact of goodwill and other intangible assets acquired through acquisitions on both total stockholders' equity and total assets. 
• Pre-provision net revenue is defined as net interest income plus total non-interest income, excluding net gains and losses, minus total non-interest expense. This measure is a non-US GAAP financial measure since it excludes the provision for (recovery of) credit losses and all gains and losses included in net income.
• Return on average assets adjusted for non-core items is calculated as annualized core net income (less the after-tax impact of all gains and losses, and acquisition-related expenses) divided by average assets. This measure is a non-US GAAP financial measure since it excludes the after-tax impact of all gains and losses, and acquisition-related expenses.
• Return on average tangible equity is calculated as annualized net income (less the after-tax impact of amortization of other intangible assets) divided by average tangible equity. This measure is a non-US GAAP financial measure since it excludes the after-tax impact of amortization of other intangible assets from net income and the impact of average goodwill and other average intangible assets acquired through acquisitions on average stockholders' equity.

A reconciliation of these non-US GAAP financial measures to the most directly comparable US GAAP financial measures is included at the end of this news release under the caption of "Non-US GAAP Financial Measures (Unaudited)."

Safe Harbor Statement:

Certain statements made in this news release regarding Peoples' financial condition, results of operations, plans, objectives, future performance and business are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. These forward-looking statements are identified by the fact they are not historical facts and include words such as "anticipate," "estimate," "may," "feel," "expect," "believe," "plan," "will," "will likely," "would," "should," "could," "project," "goal," "target," "potential," "seek," "intend," "continue," "remain," and similar expressions.

These forward-looking statements reflect management's current expectations based on all information available to management and its knowledge of Peoples' business and operations. Additionally, Peoples' financial condition, results of operations, plans, objectives, future performance and business are subject to risks and uncertainties that may cause actual results to differ materially. These factors include, but are not limited to:

Peoples encourages readers of this news release to understand forward-looking statements to be strategic objectives rather than absolute targets of future performance. Peoples undertakes no obligation to update these forward-looking statements to reflect events or circumstances after the date of this news release or to reflect the occurrence of unanticipated events, except as required by applicable legal requirements. Copies of documents filed with the SEC are available free of charge at the SEC's website at http://www.sec.gov and/or from Peoples' website - www.peoplesbancorp.com under the "Investor Relations" section.

As required by US GAAP, Peoples is required to evaluate the impact of subsequent events through the issuance date of its September 30, 2026 consolidated financial statements as part of its Quarterly Report on Form 10-Q to be filed with the SEC. Accordingly, subsequent events could occur that may cause Peoples to update its critical accounting estimates and/or to revise its financial information from the estimates and information contained in this news release.

Additional Information and Where to Find It

In connection with the proposed Capital merger, Peoples intends to file with the SEC a Registration Statement on Form S-4 to register the shares of Peoples common stock to be issued in connection with the proposed transaction. The Registration Statement will include a joint proxy statement/prospectus, and Peoples and Capital may file with the SEC other relevant documents concerning the proposed transaction. The information contained herein does not constitute an offer to sell or a solicitation of an offer to buy any securities or a solicitation of any vote or approval, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. BEFORE MAKING ANY VOTING OR INVESTMENT DECISION, INVESTORS AND SECURITY HOLDERS OF PEOPLES AND CAPITAL ARE URGED TO READ THE REGISTRATION STATEMENT AND JOINT PROXY STATEMENT/PROSPECTUS REGARDING THE PROPOSED TRANSACTION WHEN THEY BECOME AVAILABLE AND ANY OTHER RELEVANT DOCUMENTS FILED WITH THE SEC, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THOSE DOCUMENTS, BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT PEOPLES, CAPITAL, AND THE PROPOSED TRANSACTION AND RELATED MATTERS.

Investors and security holders will be able to obtain a free copy of the registration statement, including the joint proxy statement/prospectus, as well as other relevant documents filed with the SEC containing information about Peoples and Capital, without charge, at the SEC's website (https://www.sec.gov).

Participants in Solicitation

Peoples and Capital, along with their respective directors, executive officers, management, and employees may be deemed participants in the solicitation of proxies in connection with the proposed Capital merger. Information concerning Peoples' participants is set forth in the Proxy Statement, dated March 6, 2026, for Peoples' 2026 annual meeting of shareholders as filed with the SEC on Schedule 14A. Information concerning Capital's participants is set forth in the Proxy Statement, dated April 7, 2026, for Capital's 2026 annual meeting of stockholders as filed with the SEC on Schedule 14A. Additional information regarding the participants in the solicitation of proxies in respect of the proposed transaction and interests of participants of Peoples and Capital in the solicitation of proxies in respect of the proposed merger will be included in the registration statement and joint proxy statement/prospectus to be filed with the SEC. Free copies of these documents, when available, may be obtained as described in the preceding paragraph.

NON-US GAAP FINANCIAL MEASURES (Unaudited)

The following non-US GAAP financial measures used by Peoples provide information useful to investors in understanding Peoples' operating performance and trends, and facilitate comparisons with the performance of Peoples' peers. The following tables summarize the non-US GAAP financial measures derived from amounts reported in Peoples' consolidated financial statements: 

View original content:https://www.prnewswire.com/news-releases/peoples-bancorp-inc-announces-results-for-the-third-quarter-2026-302913191.html

SOURCE Peoples Bancorp Inc.