Peoples Bancorp Inc. Reports $27.9 Million Net Income for Q2 2026, Announces Acquisition of Citizens National Corporation

Peoples Bancorp Inc. reported a net income of $27.9 million for the second quarter of 2026, translating to earnings per diluted share of $0.78, a notable increase from $21.2 million or $0.59 per share in the same quarter of the previous year. For the first half of 2026, net income reached $57.0 million, compared to $45.5 million for the same period in 2025. The company's net interest income for the second quarter was $92.7 million, reflecting a 3% increase from the previous quarter and a 6% increase year-over-year, primarily driven by lower deposit costs. The net interest margin improved to 4.23%, up from 4.15% in the second quarter of 2025.

In terms of financial position, total assets decreased to $9.54 billion as of June 30, 2026, down from $9.65 billion at the end of the previous quarter and year-end 2025. This decline was largely attributed to a $144 million reduction in total investment securities, partially offset by a $51 million increase in loans and leases. Total liabilities also fell to $8.30 billion, primarily due to a decrease in total deposits, which dropped by $192 million compared to the previous quarter. Notably, non-interest-bearing deposits increased to $1.59 billion, while interest-bearing deposits decreased to $5.86 billion.

Peoples Bancorp is actively pursuing strategic growth, highlighted by its announcement of a definitive agreement to acquire Citizens National Corporation, valued at approximately $76.6 million. This acquisition is expected to enhance Peoples' market presence and operational capabilities. The company also reported a provision for credit losses of $4.7 million for the second quarter, a significant decrease from $16.6 million in the same quarter of 2025, indicating improved credit quality and management of loan portfolios.

Operationally, Peoples Bancorp's loan portfolio showed a slight increase, with total loans and leases reaching $6.82 billion, up from $6.76 billion at the end of 2025. The company reported a decrease in nonaccrual loans, which totaled $33.1 million, reflecting a proactive approach to managing credit risk. The allowance for credit losses stood at $78.1 million, representing 1.14% of total loans, indicating a stable risk management framework. Looking ahead, Peoples Bancorp remains focused on enhancing its financial performance while navigating the challenges posed by the current economic environment, including interest rate fluctuations and inflationary pressures.