Regional banking company Peoples Bancorp (NASDAQ: PEBO) beat Wall Street’s revenue expectations in Q3 CY2025, with sales up 3.2% year on year to $118.5 million. Its GAAP profit of $0.83 per share was 1.5% above analysts’ consensus estimates.
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Peoples Bancorp (PEBO) Q3 CY2025 Highlights:
- Net Interest Income: $91.35 million vs analyst estimates of $89.96 million (2.7% year-on-year growth, 1.5% beat)
- Net Interest Margin: 4.2% vs analyst estimates of 4.1% (2.2 basis point beat)
- Revenue: $118.5 million vs analyst estimates of $117 million (3.2% year-on-year growth, 1.3% beat)
- Efficiency Ratio: 57.1% vs analyst estimates of 59.7% (259 basis point beat)
- EPS (GAAP): $0.83 vs analyst estimates of $0.82 (1.5% beat)
- Tangible Book Value per Share: $22.05 vs analyst estimates of $21.69 (6% year-on-year growth, 1.7% beat)
- Market Capitalization: $1.00 billion
"We continued to experience high loan growth and had improvements in several key financial metrics during the third quarter" 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
Two primary revenue streams drive bank earnings. While net interest income, which is earned by charging higher rates on loans than paid on deposits, forms the foundation, fee-based services across banking, credit, wealth management, and trading operations provide additional income. Thankfully, Peoples Bancorp’s 17.5% annualized revenue growth over the last five years was incredible. 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 annualized revenue growth of 5.9% over the last two years is below its five-year trend, but we still think the results were respectable. 
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 modest year-on-year revenue growth of 3.2% but beat Wall Street’s estimates by 1.3%.
Net interest income made up 75% of the company’s total revenue during the last five years, meaning lending operations are Peoples Bancorp’s largest source of revenue.
Markets consistently prioritize net interest income growth over fee-based revenue, recognizing its superior quality and recurring nature compared to the more unpredictable non-interest income streams.
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Tangible Book Value Per Share (TBVPS)
The balance sheet drives banking profitability since earnings flow from the spread between borrowing and lending rates. As such, valuations for these companies concentrate on capital strength and sustainable equity accumulation potential.
When analyzing banks, tangible book value per share (TBVPS) takes precedence over many other metrics. This measure isolates genuine per-share value by removing intangible assets of debatable liquidation worth. 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 14.3% annually over the last two years from $16.87 to $22.05 per share.
Over the next 12 months, Consensus estimates call for Peoples Bancorp’s TBVPS to grow by 6.9% to $23.58, mediocre growth rate.
Key Takeaways from Peoples Bancorp’s Q3 Results
It was encouraging to see Peoples Bancorp beat analysts’ tangible book value per share expectations this quarter. We were also happy its net interest income outperformed Wall Street’s estimates. On the other hand, its EPS slightly beat. Zooming out, we think this was a mixed quarter. The stock remained flat at $28.70 immediately after reporting.
So do we think Peoples Bancorp is an attractive buy at the current price? We think that the latest quarter is only one piece of the longer-term business quality puzzle. Quality, when combined with valuation, can help determine if the stock is a buy. We cover that in our actionable full research report which you can read here, it’s free for active Edge members.
