Regional banking company Peoples Bancorp (NASDAQ: PEBO) beat Wall Street’s revenue expectations in Q4 CY2025, with sales up 5.2% year on year to $119.6 million. Its GAAP profit of $0.89 per share was 1.3% above analysts’ consensus estimates.
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Peoples Bancorp (PEBO) Q4 CY2025 Highlights:
- Net Interest Income: $91.05 million vs analyst estimates of $90.99 million (5.2% year-on-year growth, in line)
- Net Interest Margin: 4.1% vs analyst estimates of 4.1% (in line)
- Revenue: $119.6 million vs analyst estimates of $118 million (5.2% year-on-year growth, 1.3% beat)
- Efficiency Ratio: 57.8% vs analyst estimates of 59.4% (158.7 basis point beat)
- EPS (GAAP): $0.89 vs analyst estimates of $0.88 (1.3% beat)
- Tangible Book Value per Share: $22.77 vs analyst estimates of $22.60 (11.4% year-on-year growth, 0.7% beat)
- Market Capitalization: $1.09 billion
"We are pleased with the results achieved in 2025, highlighted by positive operating leverage, excluding the impact of accretion income, and solid loan growth," said Tyler Wilcox, President and Chief Executive Officer.
Company Overview
Founded in 1902 in Ohio and expanding through both organic growth and acquisitions, Peoples Bancorp (NASDAQ: PEBO) is a financial holding company that provides banking, insurance, equipment leasing, and investment services to consumers and businesses.
Sales Growth
In general, banks make money from two primary sources. The first is net interest income, which is interest earned on loans, mortgages, and investments in securities minus interest paid out on deposits. The second source is non-interest income, which can come from bank account, credit card, wealth management, investing banking, and trading fees. Luckily, Peoples Bancorp’s revenue grew at an excellent 17.9% compounded annual growth rate over the last five years. Its growth beat the average banking company and shows its offerings resonate with customers.
Long-term growth is the most important, but within financials, a half-decade historical view may miss recent interest rate changes and market returns. Peoples Bancorp’s recent performance shows its demand has slowed significantly as its annualized revenue growth of 3.5% over the last two years was well below its five-year trend. 
Note: Quarters not shown were determined to be outliers, impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business.
This quarter, Peoples Bancorp reported year-on-year revenue growth of 5.2%, and its $119.6 million of revenue exceeded Wall Street’s estimates by 1.3%.
Net interest income made up 75.5% of the company’s total revenue during the last five years, meaning lending operations are Peoples Bancorp’s largest source of revenue.
While banks generate revenue from multiple sources, investors view net interest income as the cornerstone - its predictable, recurring characteristics stand in sharp contrast to the volatility of non-interest income.
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Tangible Book Value Per Share (TBVPS)
Banks profit by intermediating between depositors and borrowers, making them fundamentally balance sheet-driven enterprises. Market participants emphasize balance sheet quality and sustained book value growth when evaluating these institutions.
Because of this, tangible book value per share (TBVPS) emerges as the critical performance benchmark. By excluding intangible assets with uncertain liquidation values, this metric captures real, liquid net worth per share. On the other hand, EPS is often distorted by mergers and flexible loan loss accounting. TBVPS provides clearer performance insights.
Peoples Bancorp’s TBVPS grew at a sluggish 2.1% annual clip over the last five years. However, TBVPS growth has accelerated recently, growing by 10.8% annually over the last two years from $18.53 to $22.77 per share.
Over the next 12 months, Consensus estimates call for Peoples Bancorp’s TBVPS to grow by 8.1% to $24.61, paltry growth rate.
Key Takeaways from Peoples Bancorp’s Q4 Results
It was good to see Peoples Bancorp narrowly top analysts’ revenue expectations this quarter. We were also happy its tangible book value per share and EPS both slightly outperformed Wall Street’s estimates. Overall, this quarter was solid. The stock remained flat at $31.45 immediately following the results.
Is Peoples Bancorp an attractive investment opportunity right now? When making that decision, it’s important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here (it’s free).
