Quarterly profit falls short of analyst expectations
Peoples Bancorp Inc. (NASDAQ:PEBO) reported second-quarter 2026 earnings on Tuesday that missed Wall Street estimates, although the company’s shares were unchanged in pre-market trading following the results.
Adjusted earnings came in at $0.78 per share, below the consensus forecast of $0.85.
Net income for the quarter ended 30 June 2026 totaled $28.0 million, compared with $29.0 million in the previous quarter. However, earnings improved from $21.2 million recorded in the second quarter of 2025.
Lower funding costs lift net interest income
The regional bank continued to benefit from lower deposit costs during the quarter.
Net interest income increased by $2.3 million from the prior quarter to $92.7 million, while the net interest margin expanded to 4.23% from 4.16% in the first quarter.
Credit quality also improved, with the provision for credit losses declining by $5.0 million to $4.7 million as macroeconomic assumptions used in the company’s loss models stabilised.
Net charge-offs fell to $5.2 million from $6.6 million in the previous quarter.
Securities sale weighs on quarterly results
“We are pleased with the results for the second quarter of 2026, with improvements in many performance metrics including our net interest margin expanding seven basis points for the quarter,” said Tyler Wilcox, President and Chief Executive Officer.
Non-interest income, excluding net gains and losses, edged up to $27.9 million from $27.6 million in the prior quarter.
However, the company reported a net loss of $8.6 million related primarily to the sale of $135.2 million of available-for-sale securities, which generated an $8.2 million realised loss.
Peoples Bancorp said the portfolio restructuring was undertaken to help maintain total assets below $10 billion ahead of its pending merger with Citizens.
Commercial lending supports balance sheet growth
Loan growth remained positive during the quarter despite the earnings miss.
Period-end loan and lease balances increased by $51.4 million, representing annualised growth of approximately 3%, driven primarily by expansion in the commercial and industrial lending portfolio.
Peoples Bancorp stock price
