Earnings call transcript: Peoples Bancorp beats Q3 2026 EPS forecast, shares rise

Peoples Bancorp reported adjusted earnings of $1.04 per share for Q3 2026, surpassing the $0.93 consensus estimate by 11.83%. However, revenue fell short of forecasts at $119.45 million, missing the $123.43 million prediction. Despite this, the bank's stock rose 3.1% in pre-market trading, reaching $37.60 from $36.47. The strong core banking results, better loan yields, and lower deposit costs contributed to the earnings beat.

Net interest margin improved to about 4.2% to 4.3%, while fee-based income rose 5% from the prior quarter. Credit quality remained solid, with non-performing loans down and 99.2% of the loan portfolio current. The company is preparing for two acquisitions, including the Citizens merger, which is expected to close by the end of September.

The bank anticipates positive operating leverage in 2026 and 2027, with net interest margin improving to 4.3% to 4.5% and fee-based income reaching $31 million to $33 million. Peoples Bancorp offers a dividend yield of 4.61% and has maintained dividend payments for 53 consecutive years, raising them for 10 consecutive years.