Peoples Bancorp (PEBO) Stock Forecast & Price Target

Peoples Bancorp is expected to have gradual restoration of normalized growth levels in the second half of 2026 due to its solid loan pipeline and ongoing share gains across its foothold resulting in an expected low-single-digit LQA quarterly organic loan growth, which is consistent with its upward growth guidance. The anticipated elevated payoff levels to wane off in the latter part of this year coupled with the bank's acquisition of CZNL that is expected to enhance the bank's net interest margin through higher-yielding new loan production while deposit costs remain steady. The bank's low-cost deposit franchise, high liquidity, and various B/S repositioning measures, including the use of proceeds from the securities portfolio restructure to pay down higher-cost borrowings are forecast to drive the core NIM to 4.36% in 4Q26.

Peoples Bancorp is likely to experience a decline in net interest margin due to the Fed rate cut and a decrease in high-balance leasing accounts. Its conservative underwriting and proactive credit monitoring may improve asset quality, but high operating expenses and minimal YoY growth may hinder profitability. There may be potential for upside in cost savings, but with a modest increase in core deposits and reduction in brokered deposits, PEBO's deposits growth is also expected to be limited.