Peoples Bancorp reported Q4 net income of $31.8 million, translating to $0.89 of earnings per diluted share versus consensus of $0.88. This represents a 7% increase in EPS from the linked quarter’s $0.83 and a 17% rise from $0.76 in the year-ago period. The outperformance was driven by disciplined expense management and modestly lower provisions relative to revenue, supporting a higher-than-expected return on assets of 1.10% for the quarter.

Total revenue for the quarter reached $117.32 million, just shy of the $117.98 million forecast. Net interest income dipped modestly to $91.0 million from $91.3 million in Q3, reflecting a net interest margin of 4.12%, down from 4.16%. The slight contraction in margin was attributed to increased funding costs, partially offset by loan growth in higher-yielding segments.

Period-end loan balances rose by $28.2 million (a 2% annualized sequential increase) supported by robust commercial and industrial lending and construction loans. Year-over-year, total loans expanded by $398.9 million, or 6%. Asset quality metrics improved, with criticized loans declining by $31.9 million (12% sequentially) and nonperforming assets falling to 0.63% of total loans and OREO from 0.66% in Q3.

Total deposits contracted by $22.0 million sequentially, reflecting shifts in customer cash management strategies. The decline lifted the loan-to-deposit ratio to 89% from 88% in the prior quarter, maintaining a comfortable liquidity buffer. Management highlighted stable core deposit retention and continues to balance deposit pricing against funding cost pressures.