Peoples Bancorp Inc

Peoples Bancorp, parent of Peoples Bank, said Tuesday it has received all necessary regulatory approvals for its merger with Citizens National Corporation and the merger of their banking subsidiaries. The deal had already cleared a shareholder vote, with Citizens' shareholders approving the agreement on August 6, 2026. The approvals mark the final regulatory hurdle for the combination of the two banking companies. Peoples Bancorp has previously said it expects the Citizens merger to close in early Q4 2026.

Peoples Bancorp guided for a full-year 2026 net interest margin of 4.10% to 4.30% and expects its Citizens merger to close early in the fourth quarter of 2026. President and CEO Tyler Wilcox said the NIM range assumes a relatively stable rate environment and does not include any benefit from a potential 25-basis-point rate increase. The company reported adjusted diluted earnings per share of $0.96 for the second quarter, with net interest income rising 3% and the net interest margin expanding 7 basis points. Quarterly fee-based income is projected between $28 million and $30 million, and total noninterest expense is expected to be $73 million to $75 million for the remaining two quarters of 2026. Loan growth is anticipated to come in toward the low end of the 3% to 5% guided range due to continued paydowns, while net charge-offs are expected to decline slightly from 2025 levels.

Shares of several regional banks climbed after softer-than-expected inflation data cooled expectations for further Federal Reserve interest rate hikes. A June CPI of 3.5% and lower-than-expected producer prices bolstered investor confidence that inflationary pressures may be easing, reducing the likelihood of aggressive monetary tightening. Strong second-quarter earnings from major financial institutions also supported the sector, showing stabilized net interest income and contained credit-loss provisions. The State Street S&P Regional Banking ETF, which tracks the broader regional banking sector, has been trading near its 2026 highs. Among individual movers, Prosperity Bancshares rose 2.7%, Peoples Bancorp gained 3.3%, National Bank Holdings advanced 3.1%, Live Oak Bancshares jumped 3.3%, and Glacier Bancorp added 2.8%.