Peoples Bancorp delivered solid first quarter results with EPS of $0.81, exceeding estimates, driven by margin expansion and modest loan growth, amid cautious credit provisioning. The company announced a strategic merger with Citizens National Corporation to expand in Kentucky.

• EPS of $0.81 beat consensus estimates of $0.80; net interest margin increased 4 basis points on lower deposit costs.
• Loan growth of $13 million primarily driven by over $111 million in commercial and industrial loans, offset by declines in CRE, construction, and lease portfolios.
• Credit metrics improved with a 3% reduction in criticized and classified loans; nonperforming loans down $3 million.
• Noninterest-bearing deposits rose over $41 million (3%), boosting the loan-to-deposit ratio to 88.5%.
• Capital ratios and tangible equity metrics improved; management maintains disciplined provisioning with a $9.7 million allowance for credit losses.