Peoples Bancorp Inc. reported financial results for the third quarter and nine months ended September 30, 2026, and announced a pending acquisition of Capital Bancorp Inc. during a conference call on October 20, 2026.
For the third quarter of 2026, the company reported diluted earnings per share of $0.91. When adjusted for one-time items, diluted EPS was $1.04, which management noted exceeded consensus analyst estimates of $0.93. The adjusted figure excluded a $4.5 million loss on investment securities and $1.5 million in acquisition-related expenses.
Key financial metrics for the quarter included a 1 percent increase in net interest income and an expansion of the net interest margin by 8 basis points. Fee-based income grew by 5 percent. The provision for credit losses declined 24 percent to $3.6 million. The annualized net charge-off rate increased to 35 basis points, driven by higher charge-offs in commercial and industrial and commercial real estate loans. Non-performing loans declined 11 percent to $4 million, and 99.2 percent of the loan portfolio was considered current.
On the balance sheet, total assets were $9.65 billion. The loan-to-deposit ratio was 91.9 percent. The company completed a sale of approximately $59 million of securities, resulting in a $4.5 million loss, as part of a strategy to remain below $10 billion in assets pending the Citizens merger.
Management provided guidance for the remainder of 2026, excluding non-core expenses but including the Citizens merger. They anticipate a positive operating leverage for 2026 compared to 2025, a net interest margin of 4.2 percent to 4.3 percent, and loan growth of 6 percent to 8 percent.
Separately, the company announced the pending acquisition of Capital Bancorp Inc. Management stated they expect to close this transaction in 2027. They also noted that the Citizens merger is expected to close at the end of October 2026.
