Peoples Bancorp Reports $29M Net Income and Announces Acquisition of Citizens National Corporation

Peoples Bancorp Inc. reported a net income of $29.0 million for the first quarter of 2026, translating to earnings per diluted share of $0.81, an increase from $24.3 million or $0.68 per share in the same quarter of 2025. The company's total interest income rose to $126.8 million, up from $124.5 million year-over-year, while interest expense decreased to $36.4 million from $39.3 million, resulting in a net interest income of $90.4 million, a 6% increase compared to the prior year. The net interest margin improved slightly to 4.16% from 4.12% in the previous quarter, driven by lower deposit costs.

In terms of significant changes, total assets remained relatively stable at $9.65 billion as of March 31, 2026, compared to $9.65 billion at the end of 2025. However, total loans and leases increased to $6.77 billion, up from $6.76 billion at the end of the previous quarter, reflecting a growth in commercial and industrial loans. The allowance for credit losses rose to $78.4 million, representing 1.16% of total loans, attributed to a deterioration in economic forecasts and net charge-offs of $6.6 million during the quarter.

Strategically, Peoples Bancorp announced a definitive agreement to acquire Citizens National Corporation in a cash and stock transaction valued at approximately $76.6 million. This merger is expected to close in the second half of 2026, pending regulatory and shareholder approvals. The acquisition aims to enhance Peoples' market presence and expand its service offerings, particularly in Kentucky, where Citizens operates.

Operationally, Peoples reported a total deposit increase to $7.65 billion, up from $7.61 billion at the end of 2025, driven by a rise in non-interest-bearing deposits and governmental accounts. The bank's customer engagement metrics showed a slight increase in electronic banking income, which totaled $5.9 million, reflecting ongoing investments in digital banking services. The employee headcount remained stable at 1,458, indicating a consistent workforce to support its operations.

Looking ahead, Peoples Bancorp anticipates continued growth in its loan portfolio and a focus on managing credit quality amid evolving economic conditions. The company remains committed to enhancing its operational efficiency and capitalizing on strategic opportunities, including the upcoming merger with Citizens National Corporation, which is expected to provide additional revenue synergies and cost savings.