Peoples Bancorp delivered third quarter results that exceeded Wall Street’s expectations, driven by continued loan growth and disciplined cost control. Management credited the quarter’s net interest income growth to higher loan balances and improved yields on investment securities following the sale of lower-yielding assets, despite a recognized loss on those sales. CEO Tyler Wilcox highlighted that core net interest margin expanded for the fifth consecutive quarter, while improvements in noninterest expenses and efficiency underscored effective operational management. Additionally, stable fee-based income and a reduction in credit loss provisions contributed to the positive outcome, with Wilcox emphasizing, “We continue to produce stable fee-based income. Our quarterly net charge-off rate decreased by two basis points while our provision for credit losses declined by over 50%.”

Is now the time to buy PEBO? Find out in our full research report (it’s free for active Edge members).

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From Peoples Bancorp’s Q3 Earnings Call

• Daniel Tamayo (Raymond James): Asked about the increase in criticized and classified loans and the likelihood of reversals. CEO Tyler Wilcox explained that most downgrades were isolated, and anticipated that $35–$55 million could be upgraded or paid off in the next quarter.
• Brendan Nosal (Hovde Group): Inquired about the drivers behind slower loan growth guidance for next year. Wilcox cited expected acceleration in payoffs, particularly as interest rates fall, and some softening in consumer demand.
• Adam Kroll (Piper Sandler): Sought clarification on margin resilience amid rate cuts. CFO Katie Bailey detailed ongoing deposit repricing actions and flexibility in managing floating rate borrowings and maturing securities to offset margin pressure.
• Tim Switzer (KBW): Asked about consumer health and subprime exposure. Wilcox noted minimal subprime auto exposure and described underwriting discipline as supporting positive loss trends, even as vehicle affordability remains a challenge.
• Daniel Cardenas (Janney Montgomery Scott): Requested details on the auto loan portfolio’s credit quality and restaurant lending. Wilcox reported high average FICO scores and low loss rates in auto loans, and stable performance in the McDonald’s restaurant portfolio.

Catalysts in Upcoming Quarters

In the coming quarters, our analysts will track (1) the pace and composition of loan growth, particularly in commercial real estate and consumer segments, (2) the impact of Federal Reserve rate decisions on net interest margin and deposit costs, and (3) trends in asset quality, especially regarding criticized and classified loans. Additionally, we will monitor management’s progress in repositioning the investment securities portfolio and any strategic M&A or capital actions that could influence growth trajectories.

Peoples Bancorp currently trades at $29.56, up from $28.67 just before the earnings. In the wake of this quarter, is it a buy or sell? Find out in our full research report (it’s free for active Edge members).

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