What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2024-08-01 compared with 2024-05-02 · 295 added, 209 removed, 1165 unchanged (30% of the section changed)

9 unchanged sentences

Total cash and cash equivalents 235,871 426,722

Available-for-sale investment securities, at fair value (amortized cost of $ 1,262,319 at March 31, 2024 and $ 1,184,288 at December 31, 2023) (a)

Available-for-sale investment securities, at fair value (amortized cost of $ 1,266,060 at June 30, 2024 and $ 1,184,288 at December 31, 2023) (a)

1,119,139 1,048,322

Held-to-maturity investment securities, at amortized cost (fair value of $ 602,112 at March 31, 2024 and $ 612,022 at December 31, 2023) (a)

Held-to-maturity investment securities, at amortized cost (fair value of $ 622,593 at June 30, 2024 and $ 612,022 at December 31, 2023) (a)

701,984 683,657

19 unchanged sentences

Stockholders’ equity

Preferred shares, no par value, 50,000 shares authorized, no shares issued at March 31, 2024 or at December 31, 2023

Common shares, no par value, 50,000,000 shares authorized, 36,747,787 shares issued at March 31, 2024 and 36,736,041 shares issued at December 31, 2023, including at each date shares held in treasury

Preferred shares, no par value, 50,000 shares authorized, no shares issued at June 30, 2024 or at December 31, 2023

Common shares, no par value, 50,000,000 shares authorized, 36,760,516 shares issued at June 30, 2024 and 36,736,041 shares issued at December 31, 2023, including at each date shares held in treasury

863,975 865,227

1 unchanged sentence

Accumulated other comprehensive loss, net of deferred income taxes ( 110,193 ) ( 101,590 )

Treasury stock, at cost, 1,355,337 shares at March 31, 2024 and 1,511,348 shares at December 31, 2023

Treasury stock, at cost, 1,347,476 shares at June 30, 2024 and 1,511,348 shares at December 31, 2023

( 33,835 ) ( 37,340 )

1 unchanged sentence

Total liabilities and stockholders’ equity $ 9,226,461 $ 9,157,382

(a) Available-for-sale investment securities and held-to-maturity investment securities are presented net of allowance for credit losses of $ 0 and $ 238 , respectively, at March 31, 2024, and $ 0 and $ 238 , respectively, at December 31, 2023.

(a) Available-for-sale investment securities and held-to-maturity investment securities are presented net of allowance for credit losses of $ 0 and $ 238 , respectively, at June 30, 2024, and $ 0 and $ 238 , respectively, at December 31, 2023.

(b) Also referred to throughout this Quarterly Report on Form 10-Q as "total loans" and "loans held for investment."

1 unchanged sentence

See Notes to the Unaudited Condensed Consolidated Financial Statements

Table of Co n tents

PEOPLES BANCORP INC.

1 unchanged sentence

CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)

Three Months Ended

Three Months Ended Six Months Ended

June 30, June 30,

(Dollars in thousands, except per share data) 2024 2023 2024 2023

14 unchanged sentences

Non-interest income:

Insurance income 6,498 5,425

Electronic banking income 6,470 6,466 12,516 11,909

1 unchanged sentence

Deposit account service charges 4,339 4,153 8,562 7,676

Bank owned life insurance income 1,500 707

Insurance income 4,109 4,004 10,607 9,429

Lease income 1,116 1,719 2,352 2,796

Bank owned life insurance income 1,037 842 2,537 1,549

Mortgage banking income 243 189 564 503

5 unchanged sentences

Salaries and employee benefit costs 36,564 38,025 75,457 70,053

Net occupancy and equipment expense 6,283 4,955

Data processing and software expense 6,743 4,728 12,512 9,290

Net occupancy and equipment expense 6,142 5,380 12,425 10,335

Professional fees 2,935 7,438 5,902 10,319

2 unchanged sentences

Federal Deposit Insurance Corporation ("FDIC") insurance expense

1,251 1,464 2,437 2,265

Other loan expenses 1,036 538 2,112 1,277

Marketing expense 1,056 930

Franchise tax expense 760 872 1,641 1,906

Communication expense 736 724 1,535 1,337

Marketing expense 681 1,357 1,737 2,287

Other non-interest expense 7,182 5,465 12,168 10,039

10 unchanged sentences

See Notes to the Unaudited Condensed Consolidated Financial Statements

Table of Co n tents

PEOPLES BANCORP INC.

1 unchanged sentence

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited)

Three Months Ended

Three Months Ended Six Months Ended

June 30, June 30,

(Dollars in thousands) 2024 2023 2024 2023

9 unchanged sentences

Amortization of unrecognized loss and service cost on benefit plans — 7 — 9

Related tax benefit — ( 2 ) — ( 2 )

Net effect on other comprehensive (loss) income — 5 — 7

Cash flow hedges:

Net gain (loss) arising during the period 256 ( 1,356 )

Related tax (expense) benefit ( 60 ) 313

Net (loss) gain arising during the period ( 443 ) 1,073 ( 187 ) ( 283 )

Related tax benefit (expense) 105 ( 262 ) 45 51

Net effect on other comprehensive (loss) income ( 338 ) 811 ( 142 ) ( 232 )

2 unchanged sentences

See Notes to the Unaudited Condensed Consolidated Financial Statements

Table of Co n tents

PEOPLES BANCORP INC.

4 unchanged sentences

(Dollars in thousands)

Balance, March 31, 2024 $ 861,925 $ 343,076 $ ( 108,940 ) $ ( 34,059 ) $ 1,062,002

Net income — 29,007 — — 29,007

Other comprehensive loss, net of tax — — ( 1,253 ) — ( 1,253 )

Cash dividends declared — ( 14,197 ) — ( 14,197 )

Reissuance of treasury stock for common share awards 264 — — ( 264 ) —

Reissuance of treasury stock for deferred compensation plan for Boards of Directors — — — 342 342

Repurchase of treasury stock in connection with employee incentive program and compensation plan for Boards of Directors — — — ( 182 ) ( 182 )

Common shares issued under dividend reinvestment plan 419 — — — 419

Common shares issued under compensation plan for Boards of Directors 21 — — 102 123

Common shares issued under employee stock purchase plan 34 — — 226 260

Stock-based compensation 1,312 — — — 1,312

Balance, June 30, 2024 $ 863,975 $ 357,886 $ ( 110,193 ) $ ( 33,835 ) $ 1,077,833

Accumulated Other Comprehensive Loss Total Stockholders' Equity

Common Shares Retained Earnings Treasury Stock

(Dollars in thousands)

Balance, December 31, 2023 $ 865,227 $ 327,237 $ ( 101,590 ) $ ( 37,340 ) $ 1,053,534

3 unchanged sentences

Reissuance of treasury stock for common share awards ( 6,598 ) — — 6,598 —

Reissuance of treasury stock for deferred compensation plan for Boards of Directors — — — 342 342

Repurchase of treasury stock in connection with employee incentive program and compensation plan for Boards of Directors — — — ( 1,051 ) ( 1,051 )

4 unchanged sentences

Stock-based compensation 4,336 — — — 4,336

Balance, June 30, 2024 $ 863,975 $ 357,886 $ ( 110,193 ) $ ( 33,835 ) $ 1,077,833

Accumulated Other Comprehensive Loss Total Stockholders' Equity

Common Shares Retained Earnings Treasury Stock

(Dollars in thousands)

Balance, March 31, 2023 $ 684,367 $ 281,771 $ ( 110,979 ) $ ( 35,616 ) $ 819,543

Net income — 21,096 — — 21,096

Other comprehensive loss, net of tax — — ( 7,941 ) — ( 7,941 )

Cash dividends declared — ( 13,422 ) — — ( 13,422 )

Reissuance of treasury stock for common share awards ( 725 ) — — 725 —

Reissuance of treasury stock for deferred compensation plan for Boards of Directors — — — 115 115

Repurchase of treasury stock in connection with employee incentive program and compensation plan for Boards of Directors — — — ( 134 ) ( 134 )

Common shares issued under dividend reinvestment plan 350 — — — 350

Common shares issued under compensation plan for Boards of Directors 11 — — 124 135

Common shares issued under employee stock purchase plan 19 — — 208 227

Stock-based compensation 1,009 — — — 1,009

Issuance of common shares related to merger with Limestone Bancorp, Inc.

177,929 — — — 177,929

Balance, June 30, 2023 $ 862,960 $ 289,445 $ ( 118,920 ) $ ( 34,578 ) $ 998,907

Accumulated Other Comprehensive Loss Total Stockholders' Equity

6 unchanged sentences

Reissuance of treasury stock for common share awards ( 5,410 ) — — 5,410 —

Reissuance of treasury stock for deferred compensation plan for Boards of Directors — — — 115 115

Repurchase of treasury stock in connection with employee incentive program and compensation plan for Boards of Directors — — — ( 1,054 ) ( 1,054 )

3 unchanged sentences

Stock-based compensation 3,159 — — — 3,159

Balance, March 31, 2023 $ 684,367 $ 281,771 $ ( 110,979 ) $ ( 35,616 ) $ 819,543

Issuance of common shares related to merger with Limestone Bancorp, Inc.

177,929 — — — 177,929

Balance, June 30, 2023 $ 862,960 $ 289,445 $ ( 118,920 ) $ ( 34,578 ) $ 998,907

See Notes to the Unaudited Condensed Consolidated Financial Statements

Table of Co n tents

PEOPLES BANCORP INC.

1 unchanged sentence

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

Three Months Ended

Six Months Ended

(Dollars in thousands) 2024 2023

21 unchanged sentences

Net increase in interest-bearing deposits 240,446 178,373

Net decrease in short-term borrowings ( 87,625 ) ( 9,468 )

Net (decrease) increase in short-term borrowings ( 118,388 ) 9,797

Proceeds from long-term borrowings 35,561 5,004

5 unchanged sentences

Proceeds from issuance of common shares 850 726

Net cash provided by financing activities 89,074 45,118

Net increase in cash and cash equivalents 2,998 3,132

Net cash provided by (used in) financing activities 13,408 ( 17,551 )

Net decrease in cash and cash equivalents ( 190,851 ) ( 5,540 )

Cash and cash equivalents at beginning of period 426,722 154,022

7 unchanged sentences

See Notes to the Unaudited Condensed Consolidated Financial Statements

Table of Co n tents

PEOPLES BANCORP INC.

7 unchanged sentences

Accordingly, these financial statements do not contain all of the information and footnotes required by US GAAP for annual financial statements and should be read in conjunction with Peoples’ Annual Report on Form 10-K for the fiscal year ended December 31, 2023 ("Peoples' 2023 Form 10-K").

The accounting and reporting policies followed in the presentation of the accompanying Unaudited Condensed Consolidated Financial Statements are consistent with those described in "Note 1 Summary of Significant Accounting Policies" of the Notes to the Consolidated Financial Statements included in Peoples’ 2023 Form 10-K, as updated by the information contained in this Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2024 (this "Form 10-Q").

Management has evaluated all significant events and transactions that occurred after March 31, 2024 for potential recognition or disclosure in these Unaudited Condensed Consolidated Financial Statements.

Management has evaluated all significant events and transactions that occurred after June 30, 2024 for potential recognition or disclosure in these Unaudited Condensed Consolidated Financial Statements.

In the opinion of management, these Unaudited Condensed Consolidated Financial Statements reflect all adjustments necessary to present fairly such information for the periods and at the dates indicated.

18 unchanged sentences

There were no transfers of assets or liabilities required to be measured at fair value on a recurring basis between levels of the fair value hierarchy during the periods presented.

Table of Co n tents

Assets and Liabilities Required to be Measured and Reported at Fair Value on a Recurring Basis

1 unchanged sentence

Recurring Fair Value Measurements at Reporting Date

March 31, 2024 December 31, 2023

June 30, 2024 December 31, 2023

(Dollars in thousands) Level 1 Level 2 Level 1 Level 2

27 unchanged sentences

The fair value for derivative financial instruments is determined based on market prices, broker-dealer quotations on similar products, or other related input parameters (Level 2).

Table of Co n tents

Assets and Liabilities Required to be Measured and Reported at Fair Value on a Non-Recurring Basis

The following table provides the fair value for each class of assets and liabilities required to be measured and reported at fair value on a non-recurring basis on the Unaudited Consolidated Balance Sheets by level in the fair value hierarchy at March 31, 2024 and December 31, 2023.

Non-Recurring Fair Value Measurements at Reporting Date

March 31, 2024 December 31, 2023

June 30, 2024 December 31, 2023

(Dollars in thousands) Level 2 Level 3 Level 2 Level 3

2 unchanged sentences

Other real estate owned — 171 — 7,118

(a) Loans held for sale are presented gross of a valuation allowance of $ 138 and $ 163 at March 31, 2024 and at December 31, 2023, respectively.

(a) Loans held for sale are presented gross of a valuation allowance of $ 149 and $ 163 at June 30, 2024 and at December 31, 2023, respectively.

Collateral Dependent Loans:

10 unchanged sentences

Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between the comparable sales and income data available (Level 3).

Table of Co n tents

Financial Instruments Not Required to be Measured or Reported at Fair Value

1 unchanged sentence

Fair Value Measurements of Other Financial Instruments

(Dollars in thousands) Fair Value Hierarchy Level March 31, 2024 December 31, 2023

(Dollars in thousands) Fair Value Hierarchy Level June 30, 2024 December 31, 2023

Carrying Amount Fair Value Carrying Amount Fair Value

21 unchanged sentences

Long-term borrowings 2 234,257 241,691 216,241 222,743

(a) Held-to-maturity investment securities are presented gross of an allowance for credit losses of $ 238 at both March 31, 2024 and December 31, 2023.

(a) Obligations of states and political subdivisions are presented gross of an allowance for credit losses of $ 238 at both June 30, 2024 and December 31, 2023.

(b) Nonqualified deferred compensation includes mutual funds as part of the investment.

(c) "Other investment securities", as reported on the Unaudited Consolidated Balance Sheets, also included equity investment securities at March 31, 2024

(c) "Other investment securities", as reported on the Unaudited Consolidated Balance Sheets, also included equity investment securities at June 30, 2024

and at December 31, 2023, which are reported in the Assets and Liabilities Required to be Measured and Reported at Fair Value on a Recurring Basis

table above and not included in this table.

(d) Loans and leases, net of deferred fees and costs, are presented gross of an allowance for credit losses of $ 64.8 million and $ 62.0 million at March 31, 2024 and at December 31, 2023, respectively.

(d) Loans and leases, net of deferred fees and costs, are presented gross of an allowance for credit losses of $ 66.2 million and $ 62.0 million at June 30, 2024 and at December 31, 2023, respectively.

For certain financial assets and liabilities, carrying value approximates fair value due to the nature of the financial instrument.

8 unchanged sentences

Management reviews the valuation methodology and quality controls utilized by the pricing services in management's overall assessment

Table of Co n tents

of the reasonableness of the fair values provided, and challenges prices when management believes a material discrepancy in pricing exists.

21 unchanged sentences

Accordingly, the fair values described above are not intended to represent the aggregate fair value of Peoples.

Table of Co n tents

Note 3 Investment Securities

2 unchanged sentences

(Dollars in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value

March 31, 2024

June 30, 2024

Obligations of:

15 unchanged sentences

Total available-for-sale securities $ 1,184,288 $ 3,240 $ ( 139,206 ) $ 1,048,322

The gross gains and losses realized by Peoples from sales of available-for-sale securities for the periods ended March 31 were as follows:

Three Months Ended

The gross gains and losses realized by Peoples from sales or prepayments of available-for-sale securities for the periods ended June 30 were as follows:

Three Months Ended Six Months Ended

June 30, June 30,

(Dollars in thousands) 2024 2023 2024 2023

3 unchanged sentences

The cost of investment securities sold, and any resulting gain or loss, were based on the specific identification method and recognized as of the trade date.

Table of Co n tents

The following table presents a summary of available-for-sale investment securities that have been in a continuous unrealized loss position for the periods identified:

6 unchanged sentences

Unrealized Loss

March 31, 2024

June 30, 2024

Obligations of:

26 unchanged sentences

Management evaluates available-for-sale investment securities for an allowance for credit losses on a quarterly basis.

At March 31, 2024, management concluded that no individual securities at an unrealized loss position required an allowance for credit losses.

At March 31, 2024, Peoples did not have the intent to sell, nor was it more likely than not that Peoples would be required to sell, any of the securities with an unrealized loss prior to recovery.

Further, the unrealized losses at both March 31, 2024 and December 31, 2023 were largely attributable to changes in market interest rates and spreads since the securities were purchased, and were not credit-related losses.

Accrued interest receivable is not included in investment securities balances, and is presented in the “Other assets” line of the Unaudited Consolidated Balance Sheets, with no recorded allowance for credit losses.

Interest receivable on investment securities was $ 9.8 million at March 31, 2024 and $ 8.8 million at December 31, 2023.

The unrealized loss with respect to the three bank-issued trust preferred securities that had been in an unrealized loss position for twelve months or more at March 31, 2024 was attributable to the subordinated nature of the trust preferred securities.

Table of Co n tents

The table below presents the amortized cost, fair value and total weighted-average yield of available-for-sale securities by contractual maturity at March 31, 2024.

At June 30, 2024, management concluded that no individual securities at an unrealized loss position required an allowance for credit losses.

At June 30, 2024, Peoples did not have the intent to sell, nor was it more likely than not that Peoples would be required to sell, any of the securities with an unrealized loss prior to recovery.

Further, the unrealized losses at both June 30, 2024 and December 31, 2023 were attributable to changes in market interest rates and spreads since the securities were purchased, and were not credit-related losses.

The unrealized loss with respect to the two bank-issued trust preferred securities that had been in an unrealized loss position for twelve months or more at June 30, 2024 was attributable to the subordinated nature of the trust preferred securities.

The table below presents the amortized cost, fair value and total weighted-average yield of available-for-sale securities by contractual maturity at June 30, 2024.

The weighted-average yields are based on the amortized cost.

22 unchanged sentences

(Dollars in thousands) Amortized Cost Allowance for Credit Losses Gross Unrealized Gains Gross Unrealized Losses Fair Value

March 31, 2024

June 30, 2024

Obligations of:

11 unchanged sentences

Total held-to-maturity investment securities $ 683,895 $ ( 238 ) $ 2,266 $ ( 73,901 ) $ 612,022

There were no sales of held-to-maturity investment securities during either of the three months ended March 31, 2024 or 2023.

There were no sales of held-to-maturity investment securities during either of the six months ended June 30, 2024 or 2023.

Management evaluates held-to-maturity investment securities for an allowance for credit losses on a quarterly basis.

3 unchanged sentences

The remaining securities are included in the calculation of the allowance for credit losses for held-to-maturity investment securities.

Peoples reported $ 0.2 million of allowance for credit losses for held-to-maturity securities at both March 31, 2024, and December 31, 2023.

Peoples reported $ 0.2 million of allowance for credit losses for held-to-maturity securities at both June 30, 2024, and December 31, 2023.

The following table presents a summary of held-to-maturity investment securities that had been in a continuous unrealized loss position for the periods identified:

Table of Co n tents

Less than 12 Months 12 Months or More Total

5 unchanged sentences

Value Unrealized Loss

March 31, 2024

June 30, 2024

Obligations of:

15 unchanged sentences

Total $ 122,785 $ 3,306 34 $ 386,135 $ 70,595 150 $ 508,920 $ 73,901

The table below presents the amortized cost, fair value and total weighted-average yield of held-to-maturity investment securities by contractual maturity at March 31, 2024.

The weighted-average yields are based on the amortized cost and are computed on a fully taxable-equivalent basis using a blended federal and state corporate income tax rate of 23.2 % at March 31, 2024.

The table below presents the amortized cost, fair value and total weighted-average yield of held-to-maturity investment securities by contractual maturity at June 30, 2024.

In some cases, the issuers may have the right to call or prepay obligations without call or prepayment penalties prior to the contractual maturity date.

16 unchanged sentences

Peoples' other investment securities on the Unaudited Consolidated Balance Sheets consist largely of shares of FHLB stock and of FRB stock.

Table of Co n tents

The following table summarizes the carrying value of Peoples' other investment securities:

(Dollars in thousands) March 31, 2024 December 31, 2023

(Dollars in thousands) June 30, 2024 December 31, 2023

FHLB stock $ 27,848 $ 29,949

4 unchanged sentences

Total other investment securities $ 62,742 $ 63,421

During the three months ended March 31, 2024, Peoples redeemed $ 8.0 million of FHLB stock in order to be in compliance with the requirements of the FHLB.

Peoples purchased $ 6.5 million of additional FHLB stock during the three months ended March 31, 2024, as a result of the FHLB's capital requirements on FHLB advances.

For the three months ended March 31, 2024 and 2023, Peoples recorded the change in the fair value of equity investment securities held during the period, in "Other non-interest income", resulting in an unrealized gains of $ 47,000 and $ 21,000 , respectively.

At March 31, 2024, Peoples' investment in equity investment securities was comprised largely of common stocks issued by various unrelated bank holding companies.

There were no equity investment securities of a single issuer that exceeded 10% of Peoples' stockholders' equity at March 31, 2024.

During the six months ended June 30, 2024, Peoples redeemed $ 19.3 million of FHLB stock in order to be in compliance with the requirements of the FHLB.

Peoples purchased $ 17.2 million of additional FHLB stock during the six months ended June 30, 2024, as a result of the FHLB's capital requirements on FHLB advances.

For the three months ended June 30, 2024 and 2023, Peoples recorded the change in the fair value of equity investment securities held during the period in "Other non-interest income", resulting in an unrealized gain of $ 21,000 and an unrealized loss of $ 138,000 , respectively.

For the six months ended June 30, 2024 and 2023, Peoples recognized an unrealized gain of $ 68,000 and an unrealized loss of $ 117,000 , respectively, for the change in fair value of equity investment securities in "Other non-interest income".

At June 30, 2024, Peoples' investment in equity investment securities was comprised largely of common stocks issued by various unrelated bank holding companies.

There were no equity investment securities of a single issuer that exceeded 10% of Peoples' stockholders' equity at June 30, 2024.

Pledged Securities

3 unchanged sentences

Carrying Amount

(Dollars in thousands) March 31, 2024 December 31, 2023

(Dollars in thousands) June 30, 2024 December 31, 2023

Securing public and trust department deposits, and repurchase agreements:

4 unchanged sentences

Held-to-maturity 52,659 39,607

Accrued Interest

Interest receivable on investment securities was $ 11.2 million at June 30, 2024 and $ 8.8 million at December 31, 2023.

Note 4 Loans and Leases

1 unchanged sentence

Peoples also originates insurance premium finance loans nationwide through its Peoples Premium Finance division, and originates leases nationwide through its North Star Leasing ("NSL") division and its Vantage Financial, LLC ("Vantage") subsidiary.

Table of Co n tents

The major classifications of loan balances (in each case, net of deferred fees and costs) excluding loans held for sale, were as follows:

(Dollars in thousands) March 31,

(Dollars in thousands) June 30,

2024 December 31, 2023

11 unchanged sentences

Accrued interest receivable is not included within the loan balances, but is presented in the “Other assets” line of the Unaudited Consolidated Balance Sheets, with no recorded allowance for credit losses.

Total interest receivable on loans was $ 24.3 million at March 31, 2024 and $ 24.5 million at December 31, 2023.

Total interest receivable on loans was $ 24.4 million at June 30, 2024 and $ 24.5 million at December 31, 2023.

Nonaccrual and Past Due Loans

2 unchanged sentences

The amortized cost of loans on nonaccrual status and of loans delinquent for 90 days or more and accruing was as follows:

March 31, 2024 December 31, 2023

June 30, 2024 December 31, 2023

(Dollars in thousands) Nonaccrual (a)

11 unchanged sentences

Total loans, at amortized cost $ 33,669 $ 7,592 $ 25,477 $ 6,716

(a) There were $ 3.8 million of nonaccrual loans for which there was no allowance for credit losses at March 31, 2024 and $ 1.2 million of nonaccrual loans for which there was no allowance for credit losses at December 31, 2023.

During the first three months of 2024, nonaccrual loans increased compared to at December 31, 2023, which was primarily due to one large commercial and industrial loan of approximately $ 1.9 million that went on nonaccrual status during the first quarter of 2024.

Further, two leases went on nonaccrual status during the quarter which increased the amount reported by $ 1.4 million.

The increase in accruing loans 90+ days past due at March 31, 2024 when compared to at December 31, 2023, was primarily due to an increase in premium finance loans of approximately $ 0.9 million which was partially offset by a decrease in commercial and industrial loans.

The amount of interest income recognized on accruing loans 90+ days past due during the three months ended March 31, 2024 was $ 0.5 million.

(a) There were $ 1.4 million of nonaccrual loans for which there was no allowance for credit losses at June 30, 2024 and $ 1.2 million of nonaccrual loans for which there was no allowance for credit losses at December 31, 2023.

During the first six months of 2024, nonaccrual loans increased compared to at December 31, 2023, which was primarily due to one large commercial and industrial loan of approximately $ 2.0 million that went on nonaccrual status during the first half of 2024.

Further, eight leases and four commercial real estate loans went on nonaccrual status during the second quarter of 2024 which increased the amount reported by $ 3.4 million and $ 1.8 million, respectively.

The increase in accruing loans 90+ days past due at June 30, 2024 when compared to at December 31, 2023, was primarily due to an increase in accruing premium finance loans 90+ days past due of approximately $ 1.2 million and an increase in accruing residential real estate loans 90+ days past due of approximately $ 0.3 million which was partially offset by a decrease in accruing leases and commercial and industrial loans 90+ days past due.

The amount of interest income recognized on accruing loans 90+ days past due during the six months ended June 30, 2024 was $ 0.9 million.

The following table presents the aging of the amortized cost of past due loans:

Table of Co n tents

Loans Past Due Current

(Dollars in thousands) 30 - 59 days 60 - 89 days 90 + Days Total

March 31, 2024

June 30, 2024

Construction $ — $ 70 $ — $ 70 $ 340,531 $ 340,601

21 unchanged sentences

Total loans, at amortized cost $ 42,095 $ 17,154 $ 24,430 $ 83,679 $ 6,075,517 $ 6,159,196

Delinquency trends improved slightly, as 98.7 % of Peoples' loan portfolio was considered “current” at March 31, 2024, compared to 98.6 % at December 31, 2023.

Delinquency trends improved slightly, as 98.8 % of Peoples' loan portfolio was considered “current” at June 30, 2024, compared to 98.6 % at December 31, 2023.

Pledged Loans

2 unchanged sentences

Loans pledged are summarized as follows:

(Dollars in thousands) March 31, 2024 December 31, 2023

(Dollars in thousands) June 30, 2024 December 31, 2023

Loans pledged to FHLB $ 1,206,145 $ 1,206,134

11 unchanged sentences

Loans in this risk category would possess sufficient mitigating factors, such as adequate collateral or strong guarantors possessing the capacity to repay the loan if required, for any weakness that may exist.

Table of Co n tents

“Special Mention” (grade 5):

7 unchanged sentences

“Doubtful” (grade 7):

Loans in this risk grade have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or orderly repayment in full, on the basis of current existing facts, conditions and values, highly questionable and improbable.

Loans in this risk grade have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or orderly repayment in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable.

Possibility of loss is extremely high, but because of certain important and reasonably specific factors that may work to the advantage and strengthening of the exposure, classification of each of these loans as an estimated loss is deferred until its more exact status may be determined.

7 unchanged sentences

All other loans not evaluated individually, nor meeting the regulatory conditions to be categorized as described above, would be considered as being "not rated."

The following table summarizes the risk category of loans within Peoples' loan portfolio, including acquired loans, based upon the most recent analysis performed at March 31, 2024:

The following table summarizes the risk category of loans within Peoples' loan portfolio, including acquired loans, based upon the most recent analysis performed at June 30, 2024:

Term Loans at Amortized Cost by Origination Year Revolving Loans Converted to Term

18 unchanged sentences

Total 123,917 225,981 165,081 184,150 91,030 197,174 270,730 10,493 1,258,063

Table of Co n tents

Term Loans at Amortized Cost by Origination Year Revolving Loans Converted to Term

31 unchanged sentences

Substandard — 60 70 49 7 81 — — 267

Table of Co n tents

Term Loans at Amortized Cost by Origination Year Revolving Loans Converted to Term

33 unchanged sentences

Current period gross charge-offs 25 97 — — — — 122

Table of Co n tents

Term Loans at Amortized Cost by Origination Year

39 unchanged sentences

Typically, owner occupied construction loans are secured by office buildings, warehouses, manufacturing facilities,

Table of Co n tents

and other commercial and industrial properties that are in process of construction.

11 unchanged sentences

The following table details Peoples' amortized cost of collateral dependent loans:

(Dollars in thousands) March 31, 2024 December 31, 2023

(Dollars in thousands) June 30, 2024 December 31, 2023

Amortized Cost Amortized Cost

Commercial real estate, other $ 689 $ —

Leases 2,479 —

Residential real estate — 501

Total collateral dependent loans $ 3,168 $ 501

The increase in collateral dependent loans at March 31, 2024, compared to December 31, 2023, was primarily due to the addition of a commercial real estate loan and a lease as collateral dependent loans during the three months ended March 31, 2024.

The increase in collateral dependent loans at June 30, 2024, compared to December 31, 2023, was primarily due to the addition of ten leases associated with three customer relationships during the three months ended June 30, 2024.

Modifications for Borrowers Experiencing Financial Difficulty

7 unchanged sentences

and (4) the borrower's projected cash flow is insufficient to satisfy contractual payments due under the original terms of the loan without a modification.

The following tables display the amortized cost of loans that were restructured during the three months ended March 31, 2024 and March 31, 2023, presented by loan classification.

Table of Co n tents

The following tables display the amortized cost of loans that were restructured during the three and six months ended June 30, 2024 and June 30, 2023, presented by loan classification.

Payment Delay (Only)

(Dollars in thousands) Forbearance Plan Payment Deferral Term Extension Forbearance Plan and Term Extension Total Percentage of Total by Loan Category (a)(b)

During the Three Months Ended March 31, 2024

(Dollars in thousands) Payment Deferral Term Extension Total Percentage of Total by Loan Category (a)(b)(c)

During the Three Months Ended June 30, 2024

Commercial and industrial — 687 687 0.05 %

Leasing 174 — 174 0.04 %

Home equity lines of credit — 64 64 0.03 %

Consumer, indirect — 8 8 — %

Total $ 174 $ 759 $ 933 0.01 %

During the Three Months Ended June 30, 2023

Commercial real estate — 48 48 — %

Commercial and industrial — 3,319 3,319 0.29 %

Total $ — $ 3,367 $ 3,367 0.06 %

(a) Based on the amortized cost basis as of period end, divided by the period end amortized cost basis of the corresponding class of financing receivable.

(b) The table presented above excludes loans that were paid off or otherwise no longer included in the loan portfolio of period end.

Payment Delay (Only)

(Dollars in thousands) Forbearance Plan Payment Deferral Term Extension Forbearance Plan and Term Extension Total Percentage of Total by Loan Category (a)(b)(c)

During the Six Months Ended June 30, 2024

Commercial real estate — — $ 561 $ — $ 561 0.03 %

Commercial and industrial — — 11,171 — 11,171 0.89 %

Leasing — 199 — — 199 0.05 %

Residential real estate — — 76 — 76 0.01 %

Home equity lines of credit — — 64 — 64 0.03 %

Consumer, indirect — — 8 — 8 — %

Total $ — $ 199 $ 11,880 $ — $ 12,079 0.19 %

During the Three Months Ended March 31, 2023

During the Six Months Ended June 30, 2023

Construction $ — $ 1,600 $ — $ — $ 1,600 0.38 %

2 unchanged sentences

Residential real estate — — 220 — 220 0.03 %

Consumer, indirect — — 28 — 28 — %

Total $ 194 $ 1,600 $ 3,593 $ 306 $ 5,693 0.10 %

(a) Based on the amortized cost basis as of period end, divided by the period end amortized cost basis of the corresponding class of financing receivable.

(b) The table presented above excludes loans that were paid off or otherwise no longer included in the loan portfolio of period end.

The following table summarizes the financial impacts of loan modifications and payment deferrals made to loans during both the three months ended March 31, 2024 and March 31, 2023, presented by loan classification.

(b) The table presented above excludes loans that were paid off or otherwise no longer included in the loan portfolio as of period end.

The following tables summarizes the financial impacts of loan modifications and payment deferrals made to loans during both the three and six months ended June 30, 2024 and June 30, 2023, presented by loan classification.

Weighted-Average Term Extension

(in months) Average Amount Capitalized as a Result of a Payment Delay (a)

During the Three Months Ended March 31, 2024

During the Three Months Ended June 30, 2024

Commercial and industrial 28 —

Home equity lines of credit 120 —

Consumer, indirect 2 —

During the Three Months Ended June 30, 2023

Commercial real estate 12 —

Commercial and industrial 5 —

(a) Represents the average amount of delinquency-related amounts that were capitalized as part of the loan balance.

Amounts are in whole dollars.

Weighted-Average Term Extension

(in months) Average Amount Capitalized as a Result of a Payment Delay (a)

During the Six Months Ended June 30, 2024

Commercial real estate 6 $ —

Commercial and industrial 7 —

Residential real estate 2 —

During the Three Months Ended March 31, 2023

Home equity lines of credit 120 —

Consumer, indirect 2 —

During the Six Months Ended June 30, 2023

Commercial real estate 12 —

Commercial and industrial 5 —

3 unchanged sentences

Amounts are in whole dollars.

The following table displays the amortized cost of loans that received a completed modification or payment deferral within the previous 12 months and that had a payment default in the period presented.

The following tables display the amortized cost of loans that received a completed modification or payment deferral within the previous 12 months and that had a payment default in the periods presented.

For purposes of this disclosure, Peoples defines loans that had a payment default as loans that were 90 days or more past due following a modification.

Table of Co n tents

For the Three Months Ended March 31, 2024

Payment Delay as a Result of a Payment Deferral (Only) (a)

For the Three Months Ended June 30, 2024

Commercial real estate $ 193

Commercial and industrial $ 28

Residential real estate $ 76

Total loans that subsequently defaulted $ 297

For the Six Months Ended June 30, 2024

Commercial real estate $ 193

Commercial and industrial $ 31

Residential real estate $ 76

Total loans that subsequently defaulted $ 300

For the Three and Six Month Ended June 30, 2023 (b)

Consumer, indirect $ 11

Total loans that subsequently defaulted $ 11

(a) Represents the sum of amortized cost and gross charge-off as of period end.

Excludes loans that liquidated either through foreclosure, deed-in-lieu of foreclosure, or a short sale.

As of March 31, 2023, there were no loans that were modified for borrowers experiencing financial difficulty since the adoption of ASU 2022-02 on January 1, 2023, and subsequently defaulted during the three months ended March 31, 2023.

The following table displays an aging analysis of loans that were modified during the twelve months prior to March 31, 2024, presented by classification and class of financing receivable.

As of March 31, 2024

(b) Accounting standard was implemented as of January 1, 2023, thus information above reflects loan modifications made on or after that date.

The following table displays an aging analysis of loans that were modified during the 12 months prior to June 30, 2024, presented by classification and class of financing receivable.

As of June 30, 2024

(Dollars in thousands) 30-59 Days Delinquent 60-89 Days Delinquent 90+ Days Delinquent Total Delinquent Current Total

5 unchanged sentences

Home equity lines of credit — — — — 122 122

Consumer, indirect — — — — 8 8

Total loans modified (a)

1 unchanged sentence

(a) Represents the amortized cost basis as of period end.

The following table displays an aging analysis of loans that were modified on or after January 1, 2023, the date Peoples adopted ASU 2022-02, through March 31, 2023, presented by classification and class of financing receivable.

As of March 31, 2023

The following table displays an aging analysis of loans that were modified on or after January 1, 2023, the date Peoples adopted ASU 2022-02, through June 30, 2023, presented by classification and class of financing receivable.

As of June 30, 2023

(Dollars in thousands) 30-59 Days Delinquent 60-89 Days Delinquent 90+ Days Delinquent Total Delinquent Current Total

3 unchanged sentences

Residential real estate — — — — 220 220

Consumer, indirect 28 0 0 28 0 28

Total loans modified (a)

5 unchanged sentences

Following the reasonable and supportable period, Peoples reverts the macroeconomic variables to their long run average over a four-quarter reversion period.

Table of Co n tents

Changes in the allowance for credit losses for the three months ended March 31, 2024 and March 31, 2023 are summarized below:

Changes in the allowance for credit losses for the three and six months ended June 30, 2024 and June 30, 2023 are summarized below:

(Dollars in thousands) Beginning Balance, March 31, 2024

Initial Allowance for Acquired PCD Assets (Recovery of) Provision for Credit Losses (a) Charge-offs Recoveries Ending Balance, June 30, 2024

Construction $ 701 $ — $ ( 28 ) $ — $ — $ 673

Commercial real estate, other 21,788 — ( 1,856 ) — ( 80 ) 19,852

Commercial and industrial 10,581 — 408 ( 56 ) 10 10,943

Premium finance 607 — 207 ( 55 ) 4 763

Leases 12,889 — 4,533 ( 2,377 ) 173 15,218

Residential real estate 5,866 — 69 ( 64 ) 68 5,939

Home equity lines of credit 1,689 — 57 ( 9 ) — 1,737

Consumer, indirect 8,301 — 1,803 ( 1,567 ) 117 8,654

Consumer, direct 2,279 — 179 ( 141 ) 15 2,332

Deposit account overdrafts 121 — 286 ( 338 ) 67 136

Total $ 64,822 $ — $ 5,658 $ ( 4,607 ) $ 374 $ 66,247

(a) Amount does not include the provision for the allowance for credit losses on unfunded commitments.

(Dollars in thousands) Beginning Balance, March 31, 2023 Initial Allowance for Acquired PCD Assets Provision for (Recovery of) Credit Losses (a) Charge-offs Recoveries Ending Balance, June 30, 2023

Construction $ 1,273 $ — $ 223 $ — $ — $ 1,496

Commercial real estate, other 16,474 280 2,968 ( 7 ) 16 19,731

Commercial and industrial 8,307 376 1,905 ( 11 ) 451 11,028

Premium finance 433 — 18 ( 23 ) 3 431

Leases 9,109 — 1,783 ( 604 ) 89 10,377

Residential real estate 6,504 254 ( 656 ) ( 59 ) 69 6,112

Home equity lines of credit 1,717 13 1 ( 55 ) — 1,676

Consumer, indirect 7,781 — 641 ( 941 ) 129 7,610

Consumer, direct 1,619 85 981 ( 78 ) 35 2,642

Deposit account overdrafts 86 — 232 ( 263 ) 53 108

Total $ 53,303 $ 1,008 $ 8,096 $ ( 2,041 ) $ 845 $ 61,211

(a) Amount does not include the provision for the allowance for credit losses on unfunded commitments.

(Dollars in thousands) Beginning Balance, December 31, 2023

Initial Allowance for Acquired PCD Assets Provision for (Recovery of) Credit Losses (a) Charge-offs Recoveries Ending Balance, March 31, 2024

Initial Allowance for Acquired PCD Assets Provision for (Recovery of) Credit Losses (a) Charge-offs Recoveries Ending Balance, June 30, 2024

Construction $ 699 $ — $ ( 26 ) $ — $ — $ 673

11 unchanged sentences

(Dollars in thousands) Beginning Balance,

December 31, 2022 Initial Allowance for Acquired PCD Assets (a) Provision for (Recovery of) Credit Losses (b) Charge-offs Recoveries Ending Balance, March 31, 2023

December 31, 2022 Initial Allowance for Acquired PCD Assets Provision for (Recovery of) Credit Losses (a) Charge-offs Recoveries Ending Balance, June 30, 2023

Construction $ 1,250 $ — $ 255 $ ( 9 ) $ — $ 1,496

9 unchanged sentences

Total $ 53,162 $ 1,008 $ 9,781 $ ( 3,896 ) $ 1,156 $ 61,211

(a) Includes purchase price adjustments related to acquisitions previously completed but were within the 12-month measurement period.

(b) Amount does not include the provision for the allowance for credit losses on unfunded commitments.

During the first quarter of 2024, Peoples recorded a total provision for credit losses of $ 6.1 million, which was driven by (i) a deterioration in macro-economic conditions used within the current expected credit loss ("CECL") model, (ii) an increase of reserves on individually analyzed loans, (iii) and loan growth.

The increase in the allowance for credit losses at March 31, 2024 when compared to prior periods was driven by the establishment of an allowance for credit losses for loans acquired in the Limestone Merger.

Table of Co n tents

During the first quarter of 2023, Peoples recorded a provision for credit losses of $ 1.7 million, largely attributable to a deterioration of macro-economic conditions, partially offset by a reduction in reserves for individually analyzed loans.

Net charge-offs for the first quarter of 2023 were $ 1.5 million, primarily due to net charge-offs of indirect consumer loans of $ 0.9 million.

Peoples had recorded an allowance for unfunded commitments of $ 1.7 million and $ 1.8 million as of March 31, 2024 and December 31, 2023, respectively.

(a) Amount does not include the provision for the allowance for credit losses on unfunded commitments.

During the second quarter of 2024, Peoples recorded a total provision for credit losses of $ 5.7 million, which was a result of (i) higher net-charge offs, (ii) an increase of reserves on individually analyzed loans and leases, and (iii) loan growth.

Net charge-offs for the second quarter of 2024 were $ 4.2 million, primarily driven by an increase in charge-offs on leases originated by our North Star Leasing business, partially offset by decreases in net charge-offs on commercial and industrial loans and other commercial real estate loans.The increase in the allowance for credit losses at June 30, 2024 when compared to at March 31, 2024 and at December 31, 2023 was primarily due to an increase on reserves for individually analyzed loans and leases.

During the second quarter of 2023, Peoples recorded a provision for credit losses of $ 8.1 million, largely attributable to a provision of $ 9.4 million for the non-purchased credit deteriorated loans acquired in the Limestone Merger, partially offset by the release of reserves of $ 1.7 million on individually analyzed loans and leases and a recovery of $ 1.0 million due to improvements in macro-economic conditions.

Net charge-offs for the second quarter of 2023 were $ 1.2 million, primarily due to net charge-offs of indirect consumer loans of $ 0.8 million.

Peoples had recorded an allowance for unfunded commitments of $ 1.8 million and $ 1.8 million as of June 30, 2024 and December 31, 2023, respectively.

The allowance for unfunded commitments (also referred to as "unfunded commitment liability") is presented in the “Accrued expenses and other liabilities” line of the Unaudited Consolidated Balance Sheets.

2 unchanged sentences

The following table details changes in the recorded amount of goodwill:

(Dollars in thousands) March 31, 2024 December 31, 2023

Goodwill, beginning of year $ 362,169 $ 292,397

For the Six Months Ended For the Year Ended

(Dollars in thousands) June 30, 2024 December 31, 2023

Goodwill, beginning of period $ 362,169 $ 292,397

Goodwill recorded from acquisitions — 69,772

2 unchanged sentences

("Limestone") pursuant to an Agreement and Plan of Merger dated October 24, 2022, at which point Limestone merged with and into Peoples, and immediately thereafter, Limestone Bank, Inc., the subsidiary bank of Limestone, merged with and into Peoples Bank (collectively, the “Limestone Merger”).

As of March 31, 2024, Peoples recorded $ 68.8 million of Goodwill related to the Limestone Merger.

As of June 30, 2024, Peoples recorded $ 68.8 million of Goodwill related to the Limestone Merger.

Other Intangible Assets

Other intangible assets were comprised of the following at March 31, 2024 , and at December 31, 2023 :

Other intangible assets were comprised of the following at June 30, 2024 , and at December 31, 2023 :

(Dollars in thousands) Core Deposits Customer Relationships Indefinite-Lived Trade Names Total

March 31, 2024

June 30, 2024

Gross intangibles $ 54,186 $ 37,920 $ 2,491 $ 94,597

13 unchanged sentences

Total other intangibles $ 50,003

As of March 31, 2024, Peoples recorded $ 27.7 million of core deposit intangibles related to the Limestone Merger.

As of June 30, 2024, Peoples recorded $ 27.7 million of core deposit intangibles related to the Limestone Merger.

Refer to "Note 13 Acquisitions" for additional information.

The following table details estimated aggregate future amortization of other intangible assets at March 31, 2024:

Table of Co n tents

The following table details estimated aggregate future amortization of other intangible assets at June 30, 2024:

(Dollars in thousands) Core Deposits Customer Relationships Non-Compete Agreements Total

Remaining nine months of 2024 $ 4,406 $ 3,770 $ 182 $ 8,358

Remaining six months of 2024 $ 2,938 $ 2,512 $ 121 $ 5,571

2025 4,609 4,038 112 $ 8,759

7 unchanged sentences

Peoples’ deposit balances were comprised of the following:

(Dollars in thousands) March 31, 2024 December 31, 2023

(Dollars in thousands) June 30, 2024 December 31, 2023

Retail certificates of deposits ("CDs"):

10 unchanged sentences

Total deposits $ 7,297,774 $ 7,152,297

Uninsured deposits were $ 2.1 billion and $ 2.0 billion at March 31, 2024 and at December 31, 2023 , respectively.

Uninsured amounts are estimated based on the portion of the respective customer account balances that exceeded the FDIC limit of $250,000.

Peoples pledges investment securities against certain governmental deposit accounts, which covered o ver $ 865.6 million o f the uninsured deposit balances at March 31, 2024 .

Table of Co n tents

Uninsured deposits were $ 2.0 billion at June 30, 2024 and at December 31, 2023 .

Uninsured deposit amounts are estimated based on the portion of the respective customer account balances that exceeded the FDIC limit of $250,000.

Peoples pledges investment securities against certain governmental deposit accounts, which covered over $ 748.3 million of the uninsured deposit balances at June 30, 2024 .

Uninsured time deposits are broken out below by time remaining until maturity.

(Dollars in thousands) March 31, 2024 December 31, 2023

(Dollars in thousands) June 30, 2024 December 31, 2023

3 months or less $ 133,606 $ 58,708

5 unchanged sentences

(Dollars in thousands) Retail Brokered Total

Remaining nine months ending December 31, 2024 $ 1,407,331 $ 483,444 $ 1,890,775

Remaining six months ending December 31, 2024 $ 1,286,633 $ 406,493 $ 1,693,126

Year ending December 31, 2025 470,615 5,023 475,638

4 unchanged sentences

Total CDs $ 1,812,874 $ 412,653 $ 2,225,527

At March 31, 2024, Peoples had 11 effective interest rate swaps, with an aggregate notional value of $ 105.0 million, all of which were funded by brokered CDs.

At June 30, 2024, Peoples had 9 effective interest rate swaps, with an aggregate notional value of $ 85.0 million, all of which were funded by brokered CDs.

Brokered CDs used to fund interest rate swaps are expected to be extended every 90 days through the maturity dates of the swaps.

1 unchanged sentence

Note 7 Stockholders’ Equity

The following table details the progression in Peoples’ common shares and treasury stock during the three months ended March 31, 2024:

The following table details the progression in Peoples’ common shares and treasury stock during the six months ended June 30, 2024:

Common Shares Treasury

4 unchanged sentences

Grant of restricted common shares — ( 292,524 )

Changes related to deferred compensation plan for Boards of Directors:

Grant of unrestricted common shares — ( 1,200 )

Purchase of treasury stock — 8,718

4 unchanged sentences

Common shares issued under employee stock purchase plan

Shares at March 31, 2024 36,747,787 1,355,337

Shares at June 30, 2024 36,760,516 1,347,476

On January 28, 2021, Peoples' Board of Directors approved a share repurchase program authorizing Peoples to purchase up to an aggregate of $ 30.0 million of Peoples' outstanding common shares.

As of March 31, 2024, Peoples had repurchased 471,307 common shares totaling $ 13.4 million under the share repurchase program.

There were 100,905 common shares totaling $ 3.0 million repurchased during the first three months of 2024.

As of June 30, 2024, Peoples had repurchased 471,307 common shares totaling $ 13.4 million under the share repurchase program.

There were 100,905 common shares totaling $ 3.0 million repurchased during the first six months of 2024.

Under Peoples' Amended Articles of Incorporation, Peoples is authorized to issue up to 50,000 preferred shares, in one or more series, having such voting powers, designations, preferences, rights, qualifications, limitations and restrictions as designated by Peoples' Board of Directors.

At March 31, 2024, Peoples had no preferred shares issued or outstanding.

On January 22, 2024, Peoples' Board of Directors declared a quarterly cash dividend of $ 0.39 per common share, payable on February 20, 2024, to shareholders of record on February 5, 2024.

On April 22, 2024, Peoples' Board of Directors declared a quarterly cash dividend of $ 0.40 per common share, payable on May 20, 2024, to shareholders of record on May 6, 2024.

The following table details the cash dividends declared per common share during the first two quarters of 2024 and the comparable periods of 2023:

At June 30, 2024, Peoples had no preferred shares issued or outstanding.

On July 22, 2024, Peoples' Board of Directors declared a quarterly cash dividend of $ 0.40 per common share, payable on August 19, 2024, to shareholders of record on August 5, 2024.

The following table details the cash dividends declared per common share during the first three quarters of 2024 and the comparable periods of 2023:

First quarter $ 0.39 $ 0.38

Second quarter 0.40 0.39

Third quarter 0.40 0.39

Total dividends declared $ 1.19 $ 1.16

Accumulated Other Comprehensive (Loss) Income

The following table details the change in the components of Peoples’ accumulated other comprehensive (loss) income during the three months ended March 31, 2024:

The following table details the change in the components of Peoples’ accumulated other comprehensive (loss) income during the six months ended June 30, 2024:

(Dollars in thousands) Unrealized (Loss) Gain on Securities Unrealized Gain on Cash Flow Hedges Accumulated Other Comprehensive (Loss) Income

1 unchanged sentence

Reclassification adjustments to net income:

Realized loss on sale of securities, net of tax 1 — 1

Realized loss on securities, net of tax 272 — 272

Other comprehensive (loss) income, net of reclassifications and tax

( 8,733 ) ( 142 ) ( 8,875 )

Balance, March 31, 2024 $ ( 111,768 ) $ 2,828 $ ( 108,940 )

Balance, June 30, 2024 $ ( 112,683 ) $ 2,490 $ ( 110,193 )

Note 8 Employee Benefit Plans

11 unchanged sentences

As of January 1, 2021, Peoples matches 100 % of participants’ contributions up to 6 % of the participants’ compensation.

Matching contributions made by Peoples during the first quarter of 2024 totaled $ 1.5 million.

Matching contributions totaled $ 5.4 million in 2023 and $ 4.4 million in 2022.

Table of Co n tents

Matching contributions made by Peoples totaled $ 3.1 million during the six months ended June 30, 2024 and $ 2.7 million for the six months ended June 30, 202 3.

Note 9 Earnings Per Common Share

The calculations of basic and diluted earnings per common share were as follows:

Three Months Ended

Three Months Ended Six Months Ended

June 30, June 30,

(Dollars in thousands, except per common share data) 2024 2023 2024 2023

21 unchanged sentences

Peoples also manages interest rate risk through the use of derivative financial instruments.

Specifically, Peoples enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known or expected cash amounts, the values of which are determined by interest rates.

Specifically, Peoples enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or

payment of future known or expected cash amounts, the values of which are determined by interest rates.

Peoples’ derivative financial instruments are used to manage differences in the amount, timing and duration of Peoples' known or expected cash receipts and its known or expected cash payments principally related to certain variable rate borrowings.

5 unchanged sentences

These interest rate swaps are designated as cash flow hedges and involve the receipt of variable rate amounts from a counterparty in exchange for Peoples making fixed payments.

At March 31, 2024, Peoples had entered into 11 interest rate swap contracts with an aggregate notional value of $ 105.0 million.

At June 30, 2024, Peoples had entered into 9 interest rate swap contracts with an aggregate notional value of $ 85.0 million.

Peoples will pay a fixed rate of interest for up to ten years while receiving a floating rate component of interest equal to term SOFR.

The interest received on the floating rate component is intended to offset the interest paid on rolling three-month brokered CDs, which will continue to be rolled through the life of the interest rate swaps.

At both March 31, 2024 and at December 31, 2023, the interest rate swaps were designated as cash flow hedges of $ 105.0 million, in brokered CDs, which are expected to be extended every 90 days through the maturity dates of the interest rate swaps.

Table of Co n tents

At both June 30, 2024 and at December 31, 2023, the interest rate swaps were designated as cash flow hedges of $ 85.0 million and $ 105.0 million, respectively, in brokered CDs, which are expected to be extended every 90 days through the maturity dates of the interest rate swaps.

For derivative financial instruments designated as cash flow hedges, the effective and ineffective portions of changes in the fair value of each derivative financial instrument is reported in accumulated other comprehensive (loss) income ("AOCI") (outside of earnings), net of tax, and are reclassified to interest expense as interest payments are made or received on Peoples' variable-rate liabilities.

1 unchanged sentence

The reset dates and the payment dates on the brokered CDs are matched to the reset dates and payment dates on the receipt of the term SOFR rate (or the three-month LIBOR floating portion prior to June 30, 2023) of the swaps to ensure effectiveness of the cash flow hedge.

During the three months ended March 31, 2024, and 2023, Peoples recorded reclassifications of losses to earnings of $ 0.9 million and $ 0.1 million, respectively.

For the six months ended June 30, 2024, and 2023, Peoples recorded reclassifications of losses to earnings of $ 1.7 million and $ 130,000 , respectively.

During the next twelve months, Peoples estimates that $ 1.4 million of AOCI will be reclassified as an addition to interest expense.

The following table summarizes information about the interest rate swaps designated as cash flow hedges:

(Dollars in thousands) March 31,

(Dollars in thousands) June 30,

2024 December 31,

5 unchanged sentences

The following table presents changes in fair value recorded in AOCI and in the Consolidated Statements of Operations related to the cash flow hedges:

Three Months Ended

Three Months Ended Six Months Ended

June 30, June 30,

(Dollars in thousands) 2024 2023 2024 2023

6 unchanged sentences

Non-Designated Hedges

Peoples maintains an interest rate protection program for commercial loan customers, which was established in 2010.

Under this program, Peoples originates variable rate loans with interest rate swaps, where the customer enters into an interest rate swap with Peoples on terms that match the terms of the loan.

By entering into the interest rate swap with the customer, Peoples Bank effectively provides the customer with a fixed rate loan while creating a variable rate asset for Peoples Bank.

Peoples Bank maintains an interest rate protection program for commercial loan customers, which was established in 2010.

Under this program, Peoples Bank originates variable rate loans with interest rate swaps, where the customer enters into an interest rate swap with Peoples Bank on terms that match the terms of the loan.

By entering into the interest rate swap with the customer, Peoples Bank

effectively provides the customer with a fixed rate loan while creating a variable rate asset for Peoples Bank.

Peoples Bank offsets its exposure in the interest rate swap by entering into an offsetting interest rate swap with an unaffiliated institution.

1 unchanged sentence

therefore, each interest rate swap is accounted for as a standalone derivative financial instrument.

These interest rate swaps did not have a material impact on Peoples' results of operations or financial condition at or for the three months ended March 31, 2024 and at or for the year ended December 31, 2023.

These interest rate swaps did not have a material impact on Peoples' results of operations or financial condition at or for the three and six months ended June 30, 2024 and at or for the year ended December 31, 2023.

The following table reflects the non-designated hedges, which are included in the Unaudited Consolidated Balance Sheets at fair value:

5 unchanged sentences

Interest rate swaps related to commercial loans $ 390,963 $ 20,643 $ 416,106 $ 19,122

Table of Co n tents

Pledged Collateral

Peoples pledges or receives collateral for all interest rate swaps.

When the fair value of Peoples' interest rate swaps is in a net liability position, Peoples must pledge collateral, and, when the fair value of Peoples' interest rate swaps is in a net asset position, the respective counterparties must pledge collateral.

At March 31, 2024 and at December 31, 2023, Peoples had no cash pledged, while counterparties had $ 15.5 million of cash pledged at March 31, 2024 and $ 12.8 million of cash pledged at December 31, 2023.

Peoples had no pledged investment securities at March 31, 2024 or at December 31, 2023, while the counterparties had pledged investment securities in the amounts of $ 2.1 million at March 31, 2024 and $ 2.2 million at December 31, 2023.

Peoples Bank pledges or receives collateral for all interest rate swaps.

When the fair value of Peoples Bank interest rate swaps is in a net liability position, Peoples Bank must pledge collateral, and, when the fair value of Peoples Bank interest rate swaps is in a net asset position, the respective counterparties must pledge collateral.

At June 30, 2024 and at December 31, 2023, Peoples Bank had no cash pledged, while counterparties had $ 15.4 million of cash pledged at June 30, 2024 and $ 12.8 million of cash pledged at December 31, 2023.

Peoples Bank had no pledged investment securities at June 30, 2024 or at December 31, 2023, while the counterparties had pledged investment securities in the amounts of $ 2.0 million at June 30, 2024 and $ 2.2 million at December 31, 2023.

Note 11 Stock-Based Compensation

2 unchanged sentences

The total number of common shares available under the 2006 Equity Plan is 1,493,297 .

The maximum number of common shares that can be issued for incentive stock options is 750,000 common shares.

The maximum number of common shares that can be issued for incentive stock options is 750,000 .

Since February 2009, Peoples has granted restricted common shares to employees, and periodically to non-employee directors, subject to the terms and conditions prescribed by the 2006 Equity Plan.

5 unchanged sentences

Since 2018, common shares awarded to non-employee directors have vested immediately upon grant with no restrictions.

In the first three months of 2024, Peoples granted an aggregate of 283,712 restricted common shares subject to performance-based vesting to officers and key employees with restrictions that will lapse three years after the grant date;

In the first six months of 2024, Peoples granted an aggregate of 283,712 restricted common shares subject to performance-based vesting to officers and key employees with restrictions that will lapse three years after the grant date;

provided that in order for the restricted common shares to vest in full, Peoples must have reported positive net income and maintained a well-capitalized status by regulatory standards for each of the three fiscal years preceding the vesting date.

The following table summarizes the changes to Peoples’ restricted common shares for the three months ended March 31, 2024:

The following table summarizes the changes to Peoples’ restricted common shares for the six months ended June 30, 2024:

Time-Based Vesting Performance-Based Vesting

Number of Common Shares Weighted-Average Grant Date Fair Value Number of Common Shares Weighted-Average Grant Date Fair Value

Oustanding at January 1, 2024 142,419 $ 28.78 403,970 $ 31.21

Outstanding at January 1, 2024 142,419 $ 28.78 403,970 $ 31.21

Awarded 8,812 28.93 283,712 27.92

1 unchanged sentence

Forfeited ( 9,779 ) 29.65 ( 20,332 ) 29.41

Outstanding at March 31, 2024 138,933 $ 28.56 604,098 $ 29.66

For the three months ended March 31, 2024, the intrinsic value for restricted common shares released was $ 2.2 million compared to $ 2.3 million for the three months ended March 31, 2023.

Outstanding at June 30, 2024

129,095 $ 28.38 594,800 $ 29.67

For the six months ended June 30, 2024, the intrinsic value for restricted common shares released was $ 2.4 million compared to $ 2.5 million for the six months ended June 30, 2023.

Stock-Based Compensation

4 unchanged sentences

The following table summarizes the amount of stock-based compensation expense and related tax benefit recognized for each period:

Table of Co n tents

Three Months Ended

Three Months Ended Six Months Ended

June 30, June 30,

(Dollars in thousands) 2024 2023 2024 2023

8 unchanged sentences

The fair value of restricted common share awards on the grant date is the market price of Peoples' common shares on that date.

Total unrecognized stock-based compensation expense related to unvested restricted common share awards was $ 9.4 million at March 31, 2024, which will be recognized over a weighted-average period of 2.3 years.

Total unrecognized stock-based compensation expense related to unvested restricted common share awards was $ 8.2 million at June 30, 2024, which will be recognized over a weighted-average period of 2.2 years.

Note 12 Revenue

The following table details Peoples' revenue from contracts with customers:

Three Months Ended

Three Months Ended Six Months Ended

June 30, June 30,

(Dollars in thousands) 2024 2023 2024 2023

1 unchanged sentence

Commission and fees from sale of insurance policies (a) $ 4,104 $ 3,969 $ 8,389 $ 7,867

Fees related to third-party administration services (a) 86 82

Performance-based commissions (b) 5 35 2,218 1,562

22 unchanged sentences

Peoples also records contract liabilities for bonuses received related to electronic banking income, for which the performance obligations have not yet been fulfilled.

Table of Co n tents

liabilities are recognized as income over time, during the period in which the performance obligations are fulfilled related to electronic banking income.

The following table details the changes in Peoples' contract assets and contract liabilities for the three-month period ended March 31, 2024:

The contract liabilities are recognized as income over time, during the period in which the performance obligations are fulfilled related to electronic banking income.

The following table details the changes in Peoples' contract assets and contract liabilities for the six-month period ended June 30, 2024:

Contract Assets Contract Liabilities

5 unchanged sentences

Recognition of income previously deferred — ( 93 )

Balance, March 31, 2024 $ 740 $ 5,273

Balance, June 30, 2024 $ 789 $ 5,800

Note 13 Acquisitions

4 unchanged sentences

Peoples accounted for this transaction as a business combination under the acquisition method.

Peoples recorded acquisition-related expenses primarily related to the Limestone Merger, which included $( 0.1 ) million in non-interest expense for the three months ended March 31, 2024.

Peoples recorded acquisition-related expenses related to the Limestone Merger, which included $ 16.9 million in non-interest expense for the year ended December 31, 2023.

The following table provides the preliminary purchase price calculation as of the date of the Limestone Merger, and the assets acquired and liabilities assumed at their estimated fair values.

The estimated fair values below are subject to adjustment for up to one year after April 30, 2023, which include, but are not limited to, loans, including the designation of PCD loans, deferred tax assets and liabilities, long-term borrowings, and certain other assets and other liabilities.

Peoples recorded no acquisition-related expenses related to the Limestone Merger for the three months ended June 30, 2024 and $( 0.1 ) million for the six months ended June 30, 2024.

Peoples recorded acquisition-related expenses related to the Limestone Merger, which included $ 10.8 million and $ 11.2 million in non-interest expense for the three months and the six months ended June 30, 2023, respectively.

For the second quarter of 2023, the $ 10.8 million of non-interest expense consisted of $ 5.2 million in salaries and employee benefit costs, $ 4.8 million in professional fees, $ 0.5 million in insurance expense, and $ 0.3 million in various other non-interest expense line items.

For the six months ended June 30, 2023, the $ 11.2 million of non-interest expense consisted of $ 5.2 million in salaries and employee benefit costs, $ 5.1 million in professional fees, $ 0.5 million in insurance expense, $ 0.4 million in various other non-interest expense line items..

The following table provides the purchase price calculation as of the date of the Limestone Merger, and the assets acquired and liabilities assumed at their estimated fair values.

(Dollars in thousands) Fair Value

9 unchanged sentences

Net loans 1,075,878

Bank premises and equipment, net of accumulated depreciation 17,690

Table of Co n tents

(Dollars in thousands) Fair Value

Bank premises and equipment, net of accumulated depreciation 17,690

Bank owned life insurance 31,343

15 unchanged sentences

Peoples recorded a core deposit asset in other intangible assets related to the Limestone Merger.

There were no changes in the estimated fair value that impacted goodwill for the three months ended March 31, 2024.

Loans acquired by Peoples in a business combination that have evidence of more than insignificant credit deterioration, which includes loans as to which Peoples believes it is probable that Peoples will be unable to collect all contractually required payments, are considered "purchased credit deteriorated" (or "PCD") loans.

13 unchanged sentences

Peoples has also made an accounting policy election to account for each separate lease component of a contract and its associated non-lease components as a single lease component for all leases subject to ASC 842.

Table of Co n tents

Lessor Arrangements

6 unchanged sentences

however, if a lease contains a residual value guarantee, Peoples reduces its residual asset risk by obtaining a security deposit from the lessee.

Peoples also originates leases through its Vantage subsidiary, which are classified as either sales-type or direct financing leases based primarily on whether they included a dollar buy-out or a fair market value buy-out, respectively.

Peoples also originates leases through its Vantage subsidiary, which are classified as either sales-type, direct financing leases, or operating leases based primarily on whether they included a dollar buy-out or a fair market value buy-out, respectively.

As a lessor, Peoples originates commercial equipment leases either directly to the customer or indirectly through vendor programs.

1 unchanged sentence

Finance leases include an estimated residual value, which is assessed for impairment as part of the allowance for credit losses.

Lease (loss) income noted in the table below includes (i) gains on the early termination of leases, (ii) fees received for referrals, (iii) gains and losses recognized on the sales of residual assets and (iv) syndication income.

Lease income noted in the table below includes (i) gains on the early termination of leases, (ii) fees received for referrals, (iii) gains and losses recognized on the sales of residual assets and (iv) syndication income.

Additional information regarding Peoples' leases can be found in "Note 4 Loans and Leases."

The table below details Peoples' lease income:

Three Months Ended

(Dollars in thousands) March 31, 2024 March 31, 2023

Three Months Ended Six Months Ended

(Dollars in thousands) June 30, 2024 June 30, 2023 June 30, 2024 June 30, 2023

Interest and fees on leases (a) $ 11,982 $ 10,275 $ 24,049 $ 19,918

Lease income 1,116 1,719 2,352 2,796

Other non-interest income 785 —

Other non-interest income (b) 1,052 — 1,837 —

Total lease income $ 14,150 $ 11,994 $ 28,238 $ 22,714

1 unchanged sentence

For additional information, see "Note 4 Loans and Leases" of the Notes to the Unaudited Condensed Consolidated Financial Statements.

(b) Included in "Other non-interest income" is operating lease income.

The following table summarizes the net investment in leases, which is included in "Loans and leases, net of deferred fees and costs" on the Unaudited Consolidated Balance Sheets:

(Dollars in thousands) March 31, 2024 December 31, 2023

(Dollars in thousands) June 30, 2024 December 31, 2023

Lease payments receivable, at amortized cost $ 483,473 $ 463,742

7 unchanged sentences

(Dollars in thousands) Balance

Remaining nine months ending December 31, 2024 $ 103,408

Remaining six months ending December 31, 2024 $ 75,253

Year ending December 31, 2025 111,531

4 unchanged sentences

Lease payments receivable, at amortized cost $ 483,473

Table of Co n tents

Lessee Arrangements

3 unchanged sentences

Certain leases contain rent escalation clauses calling for rent increases over the term of the lease, which are included in the calculation of the lease liability.

At March 31, 2024, Peoples did not have any leases that met the criteria for finance leases.

At June 30, 2024, Peoples did not have any leases that met the criteria for finance leases.

Right of Use ("ROU") assets represent the right to use an underlying asset for the lease term and lease liabilities represent an obligation to make lease payments arising from the lease.

1 unchanged sentence

Operating lease ROU assets include lease payments made at or before the commencement date and initial indirect costs.

Operating lease ROU assets exclude lease incentives.

Operating lease ROU assets are presented net of any lease incentives.

Short-term leases of certain facilities and equipment, with lease terms of 12 months or less, are recognized on a straight-line basis over the lease term and do not have an ROU asset or lease liability.

The table below details Peoples' lease expense, which is included in "Net occupancy and equipment expense" in the Unaudited Consolidated Statements of Operations:

Three Months Ended

(Dollars in thousands) March 31, 2024 March 31, 2023

Three Months Ended Six Months Ended

(Dollars in thousands) June 30, 2024 June 30, 2023 June 30, 2024 June 30, 2023

Operating lease expense $ 733 $ 766 $ 1,468 $ 1,461

Short-term lease expense 327 322 633 417

Variable lease expense 5 — 5 —

Total lease expense $ 1,065 $ 1,088 $ 2,106 $ 1,878

Peoples utilizes an incremental borrowing rate to determine the present value of lease payments for each lease, as the lease agreements do not provide an implicit rate.

The estimated incremental borrowing rate reflects a secured rate and is based on the term of the lease and the interest rate environment at the lease commencement or remeasurement date.

The estimated incremental borrowing rate reflects a secured rate and is based on the term of the lease.

The following table details the ROU assets, the lease liabilities and other information related to Peoples' operating leases at the dates shown:

(Dollars in thousands) March 31, 2024 December 31, 2023

(Dollars in thousands) June 30, 2024 December 31, 2023

Other assets $ 11,237 $ 11,689

5 unchanged sentences

Additions for ROU assets obtained during the year $ 621 $ 4,428

During both the three months ended March 31, 2024 and 2023, Peoples paid cash of $ 0.7 million for operating leases.

During both the three months ended June 30, 2024 and 2023, Peoples paid cash of $ 0.7 million for operating leases.

During the six months ended June 30, 2024 and 2023, Peoples paid cash of $ 1.4 million and $ 1.4 million, respectively, for operating leases.

The following table summarizes the maturity of remaining lease liabilities:

(Dollars in thousands) Balance

Remaining nine months ending December 31, 2024 $ 2,280

Remaining six months ending December 31, 2024 $ 1,449

Year ending December 31, 2025 2,315

6 unchanged sentences

Total lease liabilities $ 11,792

Table of Co n tents

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements