Peoples Bancorp Reports Core EPS of $0.92 in Third Quarter
Key Facts
Peoples Bancorp reported core earnings per share of $0.92 in the third quarter of 2026, according to the company’s earnings release. The figure was up from $0.79 in the second quarter and $0.83 in the third quarter of 2025. Net income also rose above the $28.0 million recorded in the previous quarter and $29.5 million a year earlier. Diluted earnings per share were $0.92, compared with $0.78 in the second quarter and $0.83 a year earlier. Return on average assets improved to 1.36%, from 1.17% and 1.22% in the respective comparison periods.
Chief Executive Officer Tyler Wilcox said the quarter’s performance featured improvements in net interest margin, net interest income, fee income and overall profitability. He added: "We are very pleased with our strong performance in the third quarter of 2026, which was marked by continued improvement in net interest margin, net interest income, fee-based revenue sources and overall profitability." Net interest income increased $2.5 million, or 3%, year over year. The company attributed the increase primarily to lower deposit and borrowing costs. The company said growth in interest income was among the factors supporting improved performance.
Excluding net gains and losses, noninterest income increased $3.6 million from the third quarter of 2025. The gains included $2.1 million in lease income, $0.8 million in trust and investment income, and $0.4 million in deposit account service charges. These items show the breadth of the growth sources Wilcox cited when discussing fee income. By contrast, noncore items reduced diluted earnings per share by $0.13 in the third quarter. Their negative impact was $0.18 in the previous quarter and $0.07 a year earlier, according to the company’s release.
The provision for credit losses fell to $3.6 million in the third quarter, from $4.7 million in the second quarter and $7.3 million in the year-earlier period. The company said the provision was associated with net charge-offs, partially offset by lower reserves for certain loans and leases and updated repayment and funding assumptions. Meanwhile, the annualized ratio of net charge-offs to average loans was 0.35%, compared with 0.31% in the previous quarter and 0.41% a year earlier. The company linked the quarterly increase in charge-offs to one customer relationship in commercial and industrial loans.
As part of its expansion, Peoples entered into an agreement on September 30 to acquire Capital Bancorp in an all-stock transaction valued at approximately $728.1 million. The company recorded $1 million in acquisition-related expenses through the end of the quarter. The agreement placed transaction costs among the items accompanying the period’s results, while the deal remains pending, according to the company’s release. Peoples also announced a quarterly cash dividend of $0.42 per share. It will be paid on November 16 to shareholders of record on November 2.
The company had scheduled a call to discuss its third-quarter results for October 20 at 11 a.m. Eastern time; that date has passed. In its earnings presentation, it said it expects to file its quarterly report with the Securities and Exchange Commission around October 29, 2026. Wilcox also said the company aims to sustain its performance momentum in the fourth quarter. This follows improved profitability metrics and a lower credit provision, alongside the signing of the acquisition agreement during the period. The quarterly report filing remains the next corporate date the company cited in the materials provided.