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Item 1. Financial Statements

2025-05-01 compared with 2024-10-31 · 204 added, 396 removed, 1080 unchanged (36% of the section changed)

3 unchanged sentences

CONSOLIDATED BALANCE SHEETS

September 30,

2025 December 31,

4 unchanged sentences

Total cash and cash equivalents 186,978 217,664

Available-for-sale investment securities, at fair value (amortized cost of $ 1,189,792 at September 30, 2024 and $ 1,184,288 at December 31, 2023) (a)

Available-for-sale investment securities, at fair value (amortized cost of $ 1,199,677 at March 31, 2025 and $ 1,229,382 at December 31, 2024) (a)

1,073,674 1,083,555

Held-to-maturity investment securities, at amortized cost (fair value of $ 636,529 at September 30, 2024 and $ 612,022 at December 31, 2023) (a)

Held-to-maturity investment securities, at amortized cost (fair value of $ 683,315 at March 31, 2025 and $ 692,499 at December 31, 2024) (a)

753,466 774,800

19 unchanged sentences

Stockholders’ equity

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

Common shares, no par value, 50,000,000 shares authorized, 36,772,459 shares issued at September 30, 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 March 31, 2025 or at December 31, 2024

Common shares, no par value, 50,000,000 shares authorized, 36,795,107 shares issued at March 31, 2025 and 36,782,601 shares issued at December 31, 2024, including at each date shares held in treasury

866,416 866,844

1 unchanged sentence

Accumulated other comprehensive loss, net of deferred income taxes ( 95,691 ) ( 110,385 )

Treasury stock, at cost, 1,323,075 shares at September 30, 2024 and 1,511,348 shares at December 31, 2023

Treasury stock, at cost, 1,220,262 shares at March 31, 2025 and 1,311,175 shares at December 31, 2024

( 31,122 ) ( 32,978 )

1 unchanged sentence

Total liabilities and stockholders’ equity $ 9,246,000 $ 9,254,247

(a) Available-for-sale investment securities and held-to-maturity investment securities are presented net of allowance for credit losses of $ 0 and $ 236 , respectively, at September 30, 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 $ 237 , respectively, at March 31, 2025, and $ 0 and $ 237 , respectively, at December 31, 2024.

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

4 unchanged sentences

CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)

Three Months Ended Nine Months Ended

September 30, September 30,

Three Months Ended

(Dollars in thousands, except per share data) 2025 2024

14 unchanged sentences

Non-interest income:

Insurance income 6,054 6,498

Electronic banking income 5,885 6,046

1 unchanged sentence

Deposit account service charges 4,015 4,223

Insurance income 4,271 4,250 14,878 13,679

Lease income 3,446 2,016

13 unchanged sentences

Federal Deposit Insurance Corporation ("FDIC") insurance expense

1,241 1,260 3,678 3,525

Other loan expenses 1,119 1,076

Operating lease expense 985 639

Franchise tax expense 929 881

Communication expense 814 752 2,349 2,089

Marketing expense 903 1,056

Communication expense 734 799

Travel and entertainment expense 500 608

Other non-interest expense 4,603 3,739

13 unchanged sentences

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited)

Three Months Ended Nine Months Ended

September 30, September 30,

Three Months Ended

(Dollars in thousands) 2025 2024

Net income $ 24,336 $ 29,584

Other comprehensive (loss) income:

Other comprehensive income (loss):

Available-for-sale investment securities:

1 unchanged sentence

Related tax (expense) benefit ( 4,620 ) 2,340

Reclassification adjustment for net loss included in net income 74 7 428 2,108

Reclassification adjustment for net gain included in net income 2 1

Related tax (expense) benefit — —

Net effect on other comprehensive income (loss) 15,201 ( 7,546 )

Defined benefit plan:

Net (loss) gain arising during the period — ( 244 ) — ( 244 )

Related tax benefit — 57 — 57

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

Related tax benefit (expense) — — — ( 2 )

Reclassification from accumulated other comprehensive income ("AOCI") — 2,424 — 2,424

Related tax benefit (expense) — ( 566 ) — ( 566 )

Net effect on other comprehensive income — 1,671 — 1,678

Cash flow hedges:

Net (loss) gain arising during the period ( 1,698 ) 118 ( 1,885 ) ( 165 )

Net loss arising during the period ( 236 ) ( 640 )

Related tax benefit 55 149

Reclassification adjustment for net (loss) gain included in net income ( 425 ) 896

Related tax benefit (expense) 99 ( 209 )

9 unchanged sentences

(Dollars in thousands)

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

Balance, December 31, 2024 $ 866,844 $ 388,109 $ ( 110,385 ) $ ( 32,978 ) $ 1,111,590

Net income — 24,336 — — 24,336

Other comprehensive loss, net of tax — — 27,697 — 27,697

Other comprehensive income, net of tax — — 14,694 — 14,694

Cash dividends declared — ( 14,227 ) — — ( 14,227 )

5 unchanged sentences

Stock-based compensation 2,430 — — — 2,430

Balance, September 30, 2024 $ 865,326 $ 375,396 $ ( 82,496 ) $ ( 33,254 ) $ 1,124,972

Balance, March 31, 2025 $ 866,416 $ 398,218 $ ( 95,691 ) $ ( 31,122 ) $ 1,137,821

Accumulated Other Comprehensive Loss Total Stockholders' Equity

6 unchanged sentences

Reissuance of treasury stock for common share awards ( 6,862 ) — — 6,862 —

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 — — — ( 869 ) ( 869 )

4 unchanged sentences

Stock-based compensation 3,024 — — — 3,024

Balance, September 30, 2024 $ 865,326 $ 375,396 $ ( 82,496 ) $ ( 33,254 ) $ 1,124,972

Accumulated Other Comprehensive Loss Total Stockholders' Equity

Common Shares Retained Earnings Treasury Stock

(Dollars in thousands)

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

Net income — 31,882 — — 31,882

Other comprehensive loss, excluding pension termination settlement, net of tax — — ( 26,734 ) — ( 26,734 )

Pension termination settlement, net of tax — — 1,858 — 1,858

Cash dividends declared — ( 13,793 ) — — ( 13,793 )

Reissuance of treasury stock for common share awards ( 314 ) — — 314 —

Repurchase of treasury stock in connection with employee incentive program and compensation plan for Boards of Directors — — — ( 391 ) ( 391 )

Common shares issued under dividend reinvestment plan 284 — — — 284

Common shares issued under compensation plan for Boards of Directors 6 — — 133 139

Common shares issued under employee stock purchase plan — — — ( 7 ) ( 7 )

Stock-based compensation 1,074 — — — 1,074

Balance, September 30, 2023 $ 864,010 $ 307,534 $ ( 143,796 ) $ ( 34,529 ) $ 993,219

Accumulated Other Comprehensive Loss Total Stockholders' Equity

Common Shares Retained Earnings Treasury Stock

(Dollars in thousands)

Balance, December 31, 2022 $ 686,450 $ 265,936 $ ( 127,136 ) $ ( 39,922 ) $ 785,328

Net income — 79,538 — — 79,538

Other comprehensive income, excluding pension settlement, net of tax — — ( 18,518 ) — ( 18,518 )

Pension settlement, net of tax — — 1,858 — 1,858

Cash dividends declared — ( 37,940 ) — — ( 37,940 )

Reissuance of treasury stock for common share awards ( 5,724 ) — — 5,724 —

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 — — — ( 1,445 ) ( 1,445 )

Common shares issued under dividend reinvestment plan 1,036 — — — 1,036

Common shares issued under compensation plan for Boards of Directors 25 — — 385 410

Common shares issued under employee stock purchase plan 61 — — 614 675

Stock-based compensation 4,233 — — — 4,233

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

177,929 — — — 177,929

Balance, September 30, 2023 $ 864,010 $ 307,534 $ ( 143,796 ) $ ( 34,529 ) $ 993,219

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

See Notes to the Unaudited Condensed Consolidated Financial Statements

2 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

Nine Months Ended

September 30,

Three Months Ended

(Dollars in thousands) 2025 2024

14 unchanged sentences

Proceeds from sales of other real estate owned 210 —

Business acquisitions, net of cash received ( 245 ) 92,952

Proceeds from bank owned life insurance contracts — 486

2 unchanged sentences

Financing activities:

Net decrease in non-interest-bearing deposits ( 114,208 ) ( 283,034 )

Net increase (decrease) in non-interest-bearing deposits 18,624 ( 99,286 )

Net increase in interest-bearing deposits 125,655 273,573

Net (decrease) increase in short-term borrowings ( 425,176 ) 25,299

Net decrease in short-term borrowings ( 174,246 ) ( 87,625 )

Proceeds from long-term borrowings 3,295 26,770

25 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, 2024 ("Peoples' 2024 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 September 30, 2024 (this "Form 10-Q").

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

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’ 2024 Form 10-K, as updated by the information contained in this Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2025 (this "Form 10-Q").

Management has evaluated all significant events and transactions that occurred after March 31, 2025 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.

Such adjustments are normal and recurring in nature.

Certain items in prior financial statements have been reclassified to conform to the current presentation, which had no impact on net income, total comprehensive income, net cash provided by operating activities or total stockholders’ equity.

Intercompany accounts and transactions have been eliminated.

2 unchanged sentences

Results of operations for interim periods are not necessarily indicative of the results to be expected for the full year, due in part to seasonal variations and unusual or infrequently occurring items.

Operating Segments:

As a community banking entity, Peoples offers its customers a full range of products including a complete line of banking, leasing, insurance, investment and trust solutions.

Peoples’ business activities are currently confined to a single reportable operating segment, which is community banking.

Peoples’ single operating segment was determined based on the similar economic characteristics shared by the components of community banking.

Peoples’ chief operating decision maker (“CODM”) is composed of its President and Chief Executive Officer, and its Chief Financial Officer.

Peoples’ CODM considers all components of consolidated interest income, interest expense, non-interest income, and non-interest expense as presented in Peoples’ Consolidated Statements of Operations for the purposes of assessing performance of Peoples’ single reportable segment and allocating resources within its reportable segment.

The CODM does not review segment revenue or expense information at a lower level than what is included in Peoples’ Consolidated Statements of Operations.

New Accounting Pronouncements:

11 unchanged sentences

Those transfers are recognized on the date of the event that prompted the transfer.

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.

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.

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

September 30, 2024 December 31, 2023

March 31, 2025 December 31, 2024

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

11 unchanged sentences

Equity investment securities (a) 188 245 197 244

Derivative assets (b) — 13,685 — 22,304

Derivative liabilities (c) $ — $ 12,354 $ — $ 19,122

Nonqualified deferred compensation (a) (b) 5,164 — 4,898 —

Derivative assets (c) — 14,092 — 18,743

Derivative liabilities (d) $ — $ 12,965 $ — $ 17,046

(a) Included in "Other investment securities" on the Unaudited Consolidated Balance Sheets.

For additional information, see "Note 3 Investment Securities" of the Notes to the Unaudited Condensed Consolidated Financial Statements.

(b) Included in " Other assets " on the Unaudited Consolidated Balance Sheets.

(b) Investments in the nonqualified deferred compensation plan consist of mutual funds.

For additional information, see "Note 10 Derivative Financial Instruments" of the Notes to the Unaudited Condensed Consolidated Financial Statements.

(d) Included in " Accrued expenses and other liabilities " on the Unaudited Consolidated Balance Sheets.

For additional information, see "Note 10 Derivative Financial Instruments" of the Notes to the Unaudited Condensed Consolidated Financial Statements.

4 unchanged sentences

The fair values of Peoples' equity investment securities are obtained from q uoted prices in active exchange markets for identical assets or liabilities (Level 1) or quoted prices in less active markets (Level 2).

Nonqualified deferred compensation:

The underlying assets relating to the nonqualified deferred compensation plan are included in a trust and primarily consist of cash and exchange traded mutual funds, which values are based on market prices (Level 1).

Derivative Assets and Derivative Liabilities :

Derivative assets and derivative liabilities are recognized on the Unaudited Consolidated Balance Sheets at their fair value within "Other assets" and "Accrued expenses and other liabilities", respectively.

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).

The fair value for derivative financial instruments is determined based on third-party models, which leverages current market interest rates, broker-dealer quotations on similar products, or other related input parameters (Level 2).

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 September 30, 2024 and December 31, 2023.

Non-Recurring Fair Value Measurements at Reporting Date

September 30, 2024 December 31, 2023

March 31, 2025 December 31, 2024

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

2 unchanged sentences

Other real estate owned — — — 5,891

(a) Loans held for sale are presented gross of a valuation allowance of $ 74 and $ 163 at September 30, 2024 and at December 31, 2023, respectively.

(a) Loans held for sale are presented gross of a valuation allowance of $ 64 and $ 166 at March 31, 2025 and at December 31, 2024, respectively.

Collateral Dependent Loans:

13 unchanged sentences

Fair Value Measurements of Other Financial Instruments

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

(Dollars in thousands) Fair Value Hierarchy Level March 31, 2025 December 31, 2024

Carrying Amount Fair Value Carrying Amount Fair Value

11 unchanged sentences

Federal Reserve Bank ("FRB") stock N/A 27,114 27,114 27,114 27,114

Other investment securities (b) N/A 3,814 3,814 3,073 3,073

Total other investment securities at cost 45,725 45,725 54,793 54,793

Other investment securities at fair value:

Nonqualified deferred compensation (b) 1 4,729 4,729 3,162 3,162

Other investment securities (c) 2 3,175 3,175 2,985 2,985

Total other investment securities 55,263 55,263 62,992 62,992

Loans and leases, net of deferred fees and costs (d) 3 6,271,839 6,229,349 6,159,196 6,064,999

Loans and leases, net of deferred fees and costs (c) 3 6,428,526 6,346,657 6,358,003 6,240,751

Bank owned life insurance 2 144,843 144,843 143,710 143,710

2 unchanged sentences

Long-term borrowings 2 237,000 258,355 238,073 258,195

(a) Obligations of states and political subdivisions are presented gross of an allowance for credit losses of $ 236 and $ 238 at September 30, 2024 and December 31, 2023, respectively.

(b) Investments in the nonqualified deferred compensation plan consist of mutual funds.

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

(a) Obligations of states and political subdivisions are presented gross of an allowance for credit losses of $ 237 at both March 31, 2025 and December 31, 2024.

(b) "Other investment securities", as reported on the Unaudited Consolidated Balance Sheets, also included equity investment securities at March 31, 2025

and at December 31, 2024, 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 $ 66.6 million and $ 62.0 million at September 30, 2024 and at December 31, 2023, respectively.

(c) Loans and leases, net of deferred fees and costs, are presented gross of an allowance for credit losses of $ 65.2 million and $ 63.3 million at March 31, 2025 and at December 31, 2024, respectively.

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

2 unchanged sentences

Cash and Cash Equivalents:

Cash and cash equivalents include cash on hand, balances due from other banks, interest-bearing deposits in other banks, federal funds sold and other short-term investments with original maturities of ninety days or less.

The carrying amount for cash and cash equivalents balances are a reasonable estimate of fair value (Level 1).

2 unchanged sentences

When observable market data is absent, the independent pricing service estimates prices based on underlying cash flow characteristics and discount rates and compares them to similar securities (Level 3).

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

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

Management reviews the valuation methodology and quality controls utilized by the pricing services in management's overall assessment of the reasonableness of the fair values provided, and challenges prices when management believes a material discrepancy in pricing exists.

Other Investment Securities:

Other investment securities at cost are not recorded at fair value as they are not marketable securities.

Other investment securities at fair value are valued using quoted prices in an active market (Level 1) or quoted prices in less active markets (Level 2).

FHLB and FRB stock are both recorded at cost.

22 unchanged sentences

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

September 30, 2024

March 31, 2025

Obligations of:

15 unchanged sentences

Total available-for-sale securities $ 1,229,382 $ 1,583 $ ( 147,410 ) $ 1,083,555

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

Three Months Ended Nine Months Ended

September 30, September 30,

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

Three Months Ended

(Dollars in thousands) 2025 2024

1 unchanged sentence

Gross losses realized 27 1

Net (loss) gain realized $ ( 74 ) $ ( 7 ) $ ( 428 ) $ ( 2,108 )

Net loss realized $ ( 2 ) $ ( 1 )

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.

7 unchanged sentences

Unrealized Loss

September 30, 2024

March 31, 2025

Obligations of:

26 unchanged sentences

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

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

At September 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 September 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 September 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 September 30, 2024.

At March 31, 2025, management concluded that no individual securities at an unrealized loss position required an allowance for credit losses.

At March 31, 2025, 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, 2025 and December 31, 2024 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 12 months or more at March 31, 2025 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 March 31, 2025.

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

September 30, 2024

March 31, 2025

Obligations of:

11 unchanged sentences

Total held-to-maturity investment securities $ 775,037 $ ( 237 ) $ 610 $ ( 82,911 ) $ 692,499

There were no sales of held-to-maturity investment securities during the periods ended September 30, 2024 or December 31, 2023.

There were no sales of held-to-maturity investment securities during the periods ended March 31, 2025 or December 31, 2024.

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

Peoples has determined that the loss given default for U.S.

government sponsored agencies investment securities is zero , due to the fact that it is unlikely the ultimate guarantor (the U.S.

government) would not perform on its implicit guarantee in the event of default.

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 September 30, 2024, and December 31, 2023.

The majority of People's held-to maturity investment securities are mortgage-backed securities, for which an allowance for credit losses was not recorded.

Peoples calculated the allowance for credit losses for state and political subdivisions using cumulative default rate averages for municipal securities.

Peoples reported $ 0.2 million of allowance for credit losses for held-to-maturity securities at both March 31, 2025, and December 31, 2024.

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:

6 unchanged sentences

Value Unrealized Loss

September 30, 2024

March 31, 2025

Obligations of:

15 unchanged sentences

Total $ 277,526 $ 6,697 62 $ 346,649 $ 76,214 149 $ 624,175 $ 82,911

The table below presents the amortized cost, fair value and total weighted-average yield of held-to-maturity investment securities by contractual maturity at September 30, 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 23.3 % at September 30, 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 March 31, 2025.

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.

17 unchanged sentences

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

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

(Dollars in thousands) March 31, 2025 December 31, 2024

FHLB stock $ 14,797 $ 24,606

4 unchanged sentences

Total other investment securities $ 51,322 $ 60,132

During the nine months ended September 30, 2024, Peoples redeemed $ 26.9 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 nine months ended September 30, 2024, as a result of the FHLB's capital requirements on FHLB advances.

For the three months ended September 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 $ 12,000 and an unrealized loss of $ 58,000 , respectively.

For the nine months ended September 30, 2024 and 2023, Peoples recognized an unrealized gain of $ 81,000 and an unrealized loss of $ 175,000 , respectively, for the change in fair value of equity investment securities in "Other non-interest income".

At September 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 September 30, 2024.

During the three months ended March 31, 2025, Peoples redeemed $ 11.4 million of FHLB stock in order to be in compliance with the requirements of the FHLB.

Peoples purchased $ 1.6 million of additional FHLB stock during the three months ended March 31, 2025, as a result of the FHLB's capital requirements on FHLB advances.

For the three months ended March 31, 2025 and 2024, 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 loss of $ 9,000 and an unrealized gain of $ 47,000 , respectively.

At March 31, 2025, 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, 2025.

Pledged Securities

3 unchanged sentences

Carrying Amount

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

(Dollars in thousands) March 31, 2025 December 31, 2024

Securing public and trust department deposits, and repurchase agreements:

6 unchanged sentences

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 $ 10.2 million at September 30, 2024 and $ 9.5 million at December 31, 2023.

Interest receivable on investment securities was $ 10.9 million at March 31, 2025 and $ 9.9 million at December 31, 2024.

Note 4 Loans and Leases

2 unchanged sentences

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) September 30,

(Dollars in thousands) March 31,

2025 December 31, 2024

10 unchanged sentences

Total loans, at amortized cost $ 6,428,526 $ 6,358,003

The table above includes net deferred loan origination costs of $ 20.4 million and $ 20.2 million at March 31, 2025 and at December 31, 2024, respectively.

The remaining unamortized net discount included in the amortized cost of loans and leases was $ 15.8 million and $ 19.5 million at March 31, 2025 and at December 31, 2024, respectively.

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 $ 22.9 million at September 30, 2024 and $ 24.5 million at December 31, 2023.

Total interest receivable on loans was $ 24.1 million at March 31, 2025 and $ 23.1 million at December 31, 2024.

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:

September 30, 2024 December 31, 2023

March 31, 2025 December 31, 2024

(Dollars in thousands) Nonaccrual (a)

10 unchanged sentences

Total loans, at amortized cost $ 35,628 $ 4,207 $ 34,129 $ 8,637

(a) There were $ 3.8 million of nonaccrual loans for which there was no allowance for credit losses at September 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 nine months of 2024, nonaccrual loans increased compared to at December 31, 2023, which was primarily due to twelve large leases totaling $ 3.6 million and four commercial real estate loans of approximately $ 1.1 million that went on nonaccrual status during 2024.

The increase in accruing loans 90+ days past due at September 30, 2024, when compared to at December 31, 2023, was primarily due to an increase in leases that were 90+ days past due and accruing of $ 8.8 million, which was administrative in nature, an increase in premium finance loans loans of approximately $ 6.4 million, and an increase in commercial real estate loans of approximately $ 3.8 million.

The increase in past due premium finance loans carry low credit risk, due to the ability to cancel premiums and recover the majority of the receivable from the insurer.

The amount of interest income recognized on accruing loans 90+ days past due during the nine months ended September 30, 2024 was $ 1.3 million.

(a) There were $ 2.6 million of nonaccrual loans for which there was no allowance for credit losses at March 31, 2025 and $ 5.7 million of nonaccrual loans for which there was no allowance for credit losses at December 31, 2024.

During the first three months of 2025, nonaccrual loans in creased compared to at December 31, 2024, which was primarily due to an uptick in the volume of leases placed on nonaccrual during the quarter, partially offset by improvements in commercial real estate loans and commercial and industrial loans.

The decrease in accruing loans 90+ days past due at March 31, 2025, when compared to at December 31, 2024, was primarily due to reductions in accruing 90+ days past due premium finance loans and residential real estate loans of $ 2.4 million and $ 1.3 million, respectively.

The delinquent premium finance loans carry low credit risk, due to the ability to cancel premiums and recover the majority of the receivable from the insurer.

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

1 unchanged sentence

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

September 30, 2024

March 31, 2025

Construction $ — $ — $ — $ — $ 319,104 $ 319,104

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Total loans, at amortized cost $ 39,161 $ 12,855 $ 32,909 $ 84,925 $ 6,273,078 $ 6,358,003

Delinquency trends decreased slightly, as 98.5 % of Peoples' loan portfolio was considered “current” at September 30, 2024, compared to 98.6 % at December 31, 2023.

Delinquency trends increased slightly, as 98.5 % of Peoples' loan portfolio was considered “current” at March 31, 2025, compared to 98.7 % at December 31, 2024.

Pledged Loans

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Loans pledged are summarized as follows:

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

(Dollars in thousands) March 31, 2025 December 31, 2024

Loans pledged to FHLB $ 1,205,884 $ 1,218,496

5 unchanged sentences

Commercial leases, as well as loan relationships whose aggregate credit exposure to Peoples is equal to or less than $ 1.0 million, are reviewed on an event driven basis.

Triggers for review include knowledge of adverse events affecting the borrower's business, receipt of financial statements indicating deteriorating credit quality or other similar events.

Triggers for review include knowledge of adverse events affecting the borrower's business, receipt of financial statements

indicating deteriorating credit quality or other similar events.

Adversely classified loans are reviewed on a quarterly basis.

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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 September 30, 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 March 31, 2025:

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

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Doubtful — — — — — 1,898 — — 1,898

Loss — — — — — 2 — — 2

Total 93,323 149,378 280,364 402,540 421,185 837,765 45,983 4,805 2,230,538

Current period gross charge-offs — — — 156 — 59 215

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

(Dollars in thousands) 2025 2024 2023 2022 2021 Prior Revolving Loans Total

Commercial and industrial

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Total 38,053 288,764 210,754 142,240 150,168 245,613 268,235 7,878 1,343,827

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

(Dollars in thousands) 2024 2023 2022 2021 2020 Prior Revolving Loans Total

Current period gross charge-offs — — — — 49 331 380

7 unchanged sentences

Doubtful — 336 1,980 1,136 52 113 — — 3,617

Loss — — — 192 — — — — 192

Total 42,962 143,892 122,994 57,742 21,919 5,945 — — 395,454

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Substandard 351 2,108 1,777 193 8 — — — 4,437

Doubtful 170 2,127 1,859 624 110 269 — — 5,159

Total 176,761 131,428 65,840 25,363 4,784 2,422 — — 406,598

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

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

(Dollars in thousands) March 31, 2025 December 31, 2024

Commercial real estate, other $ 1,887 $ 2,764

Premium finance 4,034 —

Leases 1,789 652

Commercial and industrial — 959

Residential real estate — 501

Total collateral dependent loans $ 3,676 $ 4,375

The increase in collateral dependent loans at September 30, 2024, compared to December 31, 2023, was primarily due to the addition of fourteen leases associated with five customer relationships and seven premium finance loans during the three months ended September 30, 2024.

The decrease in collateral dependent loans at March 31, 2025, compared to December 31, 2024, was primarily driven by the payoff of one commercial real estate loan and one commercial and industrial loan, which in aggregate totaled approximately $ 3.0 million.

This was partially offset by collateral dependent leases added during the first quarter.

Modifications for Borrowers Experiencing Financial Difficulty

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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 and nine months ended September 30, 2024 and September 30, 2023, presented by loan classification.

The following tables display the amortized cost of loans that were restructured during the three months ended March 31, 2025 and March 31, 2024, presented by loan classification.

Payment Delay (Only)

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

During the Three Months Ended September 30, 2024

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

During the Three Months Ended March 31, 2025

Commercial real estate $ — $ 2,445 — $ 2,445 0.11 %

1 unchanged sentence

Leasing 12 — 68 80 0.02 %

Residential real estate — 17 17 — %

Consumer, indirect 14 1 15 — %

Total $ 12 $ 8,091 $ 68 $ 8,171 0.13 %

During the Three Months Ended September 30, 2023

Commercial real estate — 901 901 0.04 %

Commercial and industrial — 2,352 2,352 0.21 %

Residential real estate — 25 25 — %

Home equity lines of credit — 52 52 0.03 %

Total $ — $ 3,330 $ 3,330 0.05 %

(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 as 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 Nine Months Ended September 30, 2024

During the Three Months Ended March 31, 2024

Commercial real estate — 565 — 565 0.03 %

2 unchanged sentences

Residential real estate — 76 — 76 0.01 %

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

Consumer, indirect — 14 8 — 22 — %

Total $ 25 $ 10,844 $ — $ 10,869 0.18 %

During the Nine Months Ended September 30, 2023

Construction $ — $ 1,598 $ — $ — $ 1,598 0.43 %

Commercial real estate 189 — 1,089 — 1,278 0.06 %

Commercial and industrial — — 5,130 293 5,423 0.48 %

Residential real estate — — 243 — 243 0.03 %

Home equity lines of credit — — 203 — 203 0.10 %

Total $ 189 $ 1,598 $ 6,665 $ 293 $ 8,745 0.14 %

(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.

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The following tables summarize the financial impacts of loan modifications and payment deferrals made to loans during both the three and nine months ended September 30, 2024 and September 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 September 30, 2024

Commercial real estate 6 $ —

Commercial and industrial 7 —

Residential real estate 1 —

Consumer, indirect 13 —

During the Three Months Ended September 30, 2023

Commercial real estate 4 —

Commercial and industrial 4 —

Residential real estate 240 —

Home equity lines of credit 217 —

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

Amounts are in whole dollars.

The following tables summarize the financial impacts of loan modifications and payment deferrals made to loans during the three months ended March 31, 2025 and March 31, 2024, presented by loan classification.

Weighted-Average Term Extension

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

During the Nine Months Ended September 30, 2024

During the Three Months Ended March 31, 2025

Commercial real estate 3

Commercial and industrial 8

Residential real estate 1 —

Home equity lines of credit 120 —

Consumer, indirect 3 —

During the Nine Months Ended September 30, 2023

During the Three Months Ended March 31, 2024

Commercial real estate 6

1 unchanged sentence

Residential real estate 2

Home equity lines of credit 189 —

Consumer, indirect 2 —

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

Amounts are in whole dollars.

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.

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

For the Three Months Ended September 30, 2024

Total loans that subsequently defaulted $ 26

For the Nine Months Ended September 30, 2024

Commercial real estate 193

Commercial and industrial 28

Residential real estate 73

Total loans that subsequently defaulted $ 320

For the Three Months Ended September 30, 2023 (b)

Term Extension (a)

For the Three Months Ended March 31, 2025

Commercial and industrial 117

Total loans that subsequently defaulted $ 755

For the Nine Months Ended September 30, 2023 (b)

For the Three Months Ended March 31, 2024

Commercial and industrial 648

Consumer, indirect 11

Total loans that subsequently defaulted $ 648

1 unchanged sentence

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

(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 September 30, 2024, presented by classification and class of financing receivable.

As of September 30, 2024

The following table displays an aging analysis of loans that were modified during the 12 months prior to March 31, 2025 and March 31, 2024, respectively, presented by classification and class of financing receivable.

As of March 31, 2025

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

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(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 September 30, 2023, presented by classification and class of financing receivable.

As of September 30, 2023

As of March 31, 2024

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

2 unchanged sentences

Commercial and industrial — 667 648 1,315 12,752 14,067

Leasing — — — — 25 25

Residential real estate 76 — — 76 24 100

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

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

(Dollars in thousands) Beginning Balance, June 30, 2024

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

Construction $ 673 $ — $ 181 $ — $ — $ 854

Commercial real estate, other 19,852 — ( 2,713 ) — 100 17,239

Commercial and industrial 10,943 — 907 ( 259 ) 1 11,592

Premium finance 763 — ( 19 ) ( 37 ) 4 711

Leases 15,218 — 5,449 ( 3,753 ) 56 16,970

Residential real estate 5,939 — 61 — 58 6,058

Home equity lines of credit 1,737 — 69 ( 2 ) — 1,804

Consumer, indirect 8,654 — 1,904 ( 1,820 ) 186 8,924

Consumer, direct 2,332 — 181 ( 162 ) 19 2,370

Deposit account overdrafts 136 — 456 ( 558 ) 83 117

Total $ 66,247 $ — $ 6,476 $ ( 6,591 ) $ 507 $ 66,639

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

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

Construction $ 1,496 $ — $ ( 255 ) $ — $ — $ 1,241

Commercial real estate, other 19,731 138 1,569 ( 278 ) 97 21,257

Commercial and industrial 11,028 3 ( 630 ) ( 199 ) 3 10,205

Premium finance 431 — 66 ( 33 ) 12 476

Leases 10,377 — 2,052 ( 905 ) 168 11,692

Residential real estate 6,112 6 156 ( 50 ) 27 6,251

Home equity lines of credit 1,676 5 ( 9 ) ( 32 ) — 1,640

Consumer, indirect 7,610 — 683 ( 926 ) 149 7,516

Consumer, direct 2,642 1 ( 43 ) ( 92 ) 11 2,519

Deposit account overdrafts 108 — 289 ( 319 ) 49 127

Total $ 61,211 $ 153 $ 3,878 $ ( 2,834 ) $ 516 $ 62,924

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

Changes in the allowance for credit losses for the three months ended March 31, 2025 and March 31, 2024 are summarized below:

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

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

Initial Allowance for Acquired PCD Assets (Recovery of) Provision for Credit Losses (a) Charge-offs Recoveries Ending Balance, March 31, 2025

Construction $ 878 $ — $ 278 $ — $ — $ 1,156

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

(Dollars in thousands) Beginning Balance,

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

(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

Construction $ 699 $ — $ 2 $ — $ — $ 701

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

During the third quarter of 2024, Peoples recorded a total provision for credit losses of $ 6.5 million, which was a result of higher net charge-offs.

Net charge-offs for the third quarter of 2024 were $ 6.1 million, primarily driven by an increase in charge-offs on leases originated by our North Star Leasing division, partially offset by recoveries of other commercial real estate loans.The increase in the allowance for credit losses at September 30, 2024 when compared to at June 30, 2024 and at December 31, 2023 was primarily due to an increase on reserves for individually analyzed loans and leases.

During the third quarter of 2023, Peoples recorded a provision for credit losses of $ 3.9 million, which was driven by (i) loan growth, (ii) an increase in net charge-offs, (iii) updates to our prepayment, curtailment, and funding rates, and (iv) a deterioration in macro-economic conditions used within the CECL mode, partially offset by the release of reserves on individually analyzed loans.

The allowance for credit losses at September 30, 2023 also included an allowance for loans that were not considered purchased credit deteriorated acquired in the Limestone merger.

The provision for credit losses during the first nine months of 2024 was $ 18.3 million, compared to a provision for credit losses of $ 13.7 million for the first nine months of 2023.

The provision for credit losses during the first nine months of 2024 was mainly a result of (i) higher net charge-offs, (ii) an increase in reserves on individually analyzed loans and leases, (iii) economic forecast deterioration and (iv) loan growth.

The provision for credit losses during the first nine months of 2023 was driven by (i) the addition of the provision for the non-purchased credit deteriorated loans acquired in the Limestone Merger, (ii) loan growth and (iii) economic forecast deterioration, partially offset by a reduction in the reserves for individually analyzed loans and leases and the use of updated loss drivers.

Peoples had recorded an allowance for unfunded commitments of $ 2.0 million and $ 1.8 million as of September 30, 2024 and December 31, 2023, respectively.

During the first quarter of 2025, Peoples recorded a total provision for credit losses on loans of $ 10.0 million, which was a result of higher net charge-offs.

Net charge-offs for the first quarter of 2025 were $ 8.1 million, primarily driven by our North Star Leasing division.

The increase in the allowance for credit losses at March 31, 2025 when compared to at December 31, 2024 was attributable to a deterioration of macro-economic conditions used within the CECL model, an increase in reserves on individually analyzed loans, and loan growth.

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

Peoples had recorded an allowance for unfunded commitments of $ 2.2 million and $ 2.0 million as of March 31, 2025 and December 31, 2024, 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:

For the Nine Months Ended For the Year Ended

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

For the Three Months Ended For the Year Ended

(Dollars in thousands) March 31, 2025 December 31, 2024

Goodwill, beginning of period $ 363,199 $ 362,169

1 unchanged sentence

Goodwill, end of period $ 363,199 $ 363,199

As of the close of business on April 30, 2023, Peoples completed its acquisition of Limestone Bancorp, Inc.

("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”).

Peoples recorded $ 68.8 million of Goodwill related to the Limestone Merger.

Other Intangible Assets

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

Other intangible assets were comprised of the following at March 31, 2025 , and at December 31, 2024 :

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

September 30, 2024

March 31, 2025

Gross intangibles $ 54,186 $ 38,470 $ 2,491 $ 95,147

13 unchanged sentences

Total other intangibles $ 39,223

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

The following table details estimated aggregate future amortization of other intangible assets at March 31, 2025:

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

Remaining three months of 2024 $ 1,466 $ 1,254 $ 64 $ 2,784

Remaining nine months of 2025 $ 3,456 $ 3,092 $ 83 $ 6,631

2026 3,736 3,036 16 $ 6,788

7 unchanged sentences

Peoples’ deposit balances were comprised of the following:

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

(Dollars in thousands) March 31, 2025 December 31, 2024

Retail certificates of deposits ("CDs"):

10 unchanged sentences

Total deposits $ 7,734,749 $ 7,590,205

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

Uninsured deposits were $ 2.1 billion a t March 31, 2025 and $ 2.0 billion at December 31, 2024 .

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 $ 714.1 million and $ 788.7 million of the uninsured deposit balances at September 30, 2024 and December 31,2023, respectively .

Peoples pledges investment securities against certain governmental deposit accounts, which covered over $ 725.5 million and $ 656.9 million of the uninsured deposit balances at March 31, 2025 and at December 31, 2024, respectively .

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

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

(Dollars in thousands) March 31, 2025 December 31, 2024

3 months or less $ 144,606 $ 180,405

5 unchanged sentences

(Dollars in thousands) Retail Brokered Total

Remaining three months ending December 31, 2024 $ 682,696 $ 484,406 $ 1,167,102

Remaining nine months ending December 31, 2025 $ 1,492,301 $ 292,800 $ 1,785,101

Year ending December 31, 2026 436,648 16,379 453,027

4 unchanged sentences

Total CDs $ 1,965,978 $ 458,957 $ 2,424,935

At September 30, 2024, Peoples had nine 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.

At March 31, 2025, Peoples had seven effective interest rate swaps, with an aggregate notional value of $ 65.0 million, all of which hedge interest payments on brokered CDs.

The brokered CDs are expected to be extended every 90 days through the maturity dates of the swaps.

Additional information regarding Peoples' interest rate swaps can be found in "Note 1 0 Derivative Financial Instruments."

Note 7 Stockholders’ Equity

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

The following table details the progression in Peoples’ common shares and treasury stock during the three months ended March 31, 2025:

Common Shares Treasury

11 unchanged sentences

Common shares issued under employee stock purchase plan

Shares at September 30, 2024 36,772,459 1,323,075

Shares at March 31, 2025 36,795,107 1,220,262

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 September 30, 2024, Peoples had repurchased an aggregate of 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 nine months of 2024, none of which were purchases in the third quarter of 2024.

As of March 31, 2025, Peoples had repurchased an aggregate of 471,307 common shares totaling $ 13.4 million under the share repurchase program.

No common shares were repurchased during the first three months of 2025 and 100,905 common shares totaling $ 3.0 million were purchased in the first quarter 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 September 30, 2024, Peoples had no preferred shares issued or outstanding.

On October 21, 2024, Peoples' Board of Directors declared a quarterly cash dividend of $ 0.40 per common share, payable on November 18, 2024, to shareholders of record on November 4, 2024.

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

At March 31, 2025, Peoples had no preferred shares issued or outstanding.

On January 20, 2025, Peoples' Board of Directors declared a quarterly cash dividend of $ 0.40 per common share, payable on February 17, 2025, to shareholders of record on February 3, 2025.

On April 21, 2025, Peoples' Board of Directors declared a quarterly cash dividend of $ 0.41 per common share, payable on May 19, 2025, to shareholders of record on May 5, 2025.

The following table details the cash dividends declared per common share during the first two quarters of 2025 and the comparable periods of 2024:

First quarter $ 0.40 $ 0.39

Second quarter 0.41 0.40

Third quarter 0.40 0.39

Fourth quarter 0.40 0.39

Total dividends declared $ 0.81 $ 0.79

Accumulated Other Comprehensive (Loss) Income

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

The following table details the change in the components of Peoples’ accumulated other comprehensive (loss) income during the three months ended March 31, 2025:

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

2 unchanged sentences

Realized loss on securities, net of tax 2 — 2

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

Realized loss on cash flow hedges, net of tax ( 326 ) ( 326 )

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

15,199 ( 181 ) 15,018

Balance, September 30, 2024 $ ( 83,683 ) $ 1,187 $ ( 82,496 )

Balance, March 31, 2025 $ ( 96,628 ) $ 937 $ ( 95,691 )

Note 8 Employee Benefit Plans

Peoples sponsored a noncontributory defined benefit pension plan that covered substantially all employees hired before January 1, 2010.

The plan provided retirement benefits based on an employee’s years of service and compensation.

For employees hired before January 1, 2003, the amount of post-retirement benefit was based on the employee’s average monthly compensation over the highest five consecutive years out of the employee’s last 10 years with Peoples while an eligible employee.

For employees hired on or after January 1, 2003, the amount of post-retirement benefit was based on 2 % of the employee’s annual compensation during the years 2003 through 2009, plus accrued interest.

During the third quarter of 2023, Peoples terminated its pension plan by settling the remaining benefit obligation of $ 7.7 million.

The pension plan had been closed to new entrants since January 1, 2010.

Peoples recorded a settlement charge of $ 2.4 million in the third quarter of 2023 in relation to the termination of the pension plan.

Peoples does not anticipate further expenses related to the termination.

Retirement Savings Plan

Peoples also maintains a retirement savings plan, or 401(k) plan, which covers substantially all employees.

The plan provides participants with the opportunity to save for retirement on a tax-deferred basis.

Peoples maintains a retirement savings plan, or 401(k) plan, which covers substantially all employees.

The plan provides participants with the opportunity to save for retirement on a tax-deferred basis or through Roth contributions.

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

Matching contributions made by Peoples totaled $ 4.5 million during the nine months ended September 30, 2024 and $ 4.1 million for the nine months ended September 30, 2023 .

Matching contributions made by Peoples totaled $ 1.5 million during the three months ended March 31, 2025 and $ 1.5 million for the three months ended March 31, 2024.

Note 9 Earnings Per Common Share

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

Three Months Ended Nine Months Ended

September 30, September 30,

Three Months Ended

(Dollars in thousands, except per common share data) 2025 2024

15 unchanged sentences

The amount exchanged is determined by reference to the notional amount and the other terms of the individual interest rate swap agreements.

The fair value of derivative financial instruments is included in the "Other assets" and the "Accrued expenses and other liabilities" lines in the accompanying Unaudited Consolidated Balance Sheets, while cash activity related to these derivative financial instruments is included in the activity in "Net cash provided by operating activities" in the Unaudited Condensed Consolidated Statements of Cash Flows.

Derivative Financial Instruments and Hedging Activities - Risk Management Objective of Using Derivative Financial Instruments

11 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 September 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 four 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 September 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.

At March 31, 2025, Peoples had entered into seven interest rate swap contracts with an aggregate notional value of $ 65.0 million.

Peoples will pay a fixed rate of interest for up to four years while receiving a floating rate component of interest equal to term secured overnight financing rate ("SOFR").

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

At both March 31, 2025 and December 31, 2024, the interest rate swaps were designated as cash flow hedges of $ 65.0 and $ 75.0 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.

Peoples assesses the effectiveness of each hedging relationship by comparing the changes in cash flows of the hedging derivative financial instrument with the changes in cash flows of the designated hedged transaction.

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.

For the nine months ended September 30, 2024, and 2023, Peoples recorded reclassifications of losses to earnings of $ 2.4 million and $ 2.3 million, respectively.

The reset dates and the payment dates on the brokered CDs or FHLB advances 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.

For the three months ended March 31, 2025, and 2024, Peoples recorded reclassifications of losses to earnings of $ 0.4 million and a gain of $ 0.9 million, respectively.

During the next 12 months, Peoples estimates that $ 1.5 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) September 30,

(Dollars in thousands) March 31,

2025 December 31,

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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 Nine Months Ended

September 30, September 30,

Three Months Ended

(Dollars in thousands) 2025 2024

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The following table reflects the cash flow hedges, which are included in the Unaudited Consolidated Balance Sheets at fair value:

September 30,

2025 December 31,

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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 and nine months ended September 30, 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 months ended March 31, 2025, or at or for the year ended December 31, 2024.

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

September 30,

2025 December 31,

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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 September 30, 2024 and at December 31, 2023, Peoples Bank had no cash pledged, while counterparties had $ 6.6 million of cash pledged at September 30, 2024 and $ 12.8 million of cash pledged at December 31, 2023.

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

At March 31, 2025 and at December 31, 2024, Peoples Bank had no cash pledged, while counterparties had $ 8.1 million of cash pledged at March 31, 2025 and $ 12.3 million of cash pledged at December 31, 2024.

Peoples Bank had no pledged investment securities at March 31, 2025 or at December 31, 2024, while the counterparties had pledged investment securities in the amounts of $ 1.9 million at March 31, 2025 and $ 1.9 million at December 31, 2024.

Note 11 Stock-Based Compensation

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

In the first nine 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 three months of 2025, Peoples granted an aggregate of 159,097 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 nine months ended September 30, 2024:

The following table summarizes the changes to Peoples’ restricted common shares for the three months ended March 31, 2025:

Time-Based Vesting Performance-Based Vesting

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Forfeited ( 7,731 ) 26.08 ( 23,799 ) 29.67

Outstanding at September 30, 2024

Outstanding at March 31, 2025

129,253 $ 28.81 579,704 $ 30.08

For the nine months ended September 30, 2024, the intrinsic value for restricted common shares released was $ 2.6 million compared to $ 3.0 million for the nine months ended September 30, 2023.

The intrinsic value for restricted common shares released was $ 4.8 million for the three months ended March 31, 2025, compared to $ 2.2 million for the three months ended March 31, 2024.

Stock-Based Compensation

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

Three Months Ended Nine Months Ended

September 30, September 30,

Three Months Ended

(Dollars in thousands) 2025 2024

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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 $ 7.2 million at September 30, 2024, which will be recognized over a weighted-average period of 2.0 years.

Total unrecognized stock-based compensation expense related to unvested restricted common share awards was $ 8.7 million at March 31, 2025, 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 Nine Months Ended

September 30, September 30,

Three Months Ended

(Dollars in thousands) 2025 2024

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(b) Services transferred at a point in time.

Peoples records contract assets for income that has been recognized over a period of time for fulfillment of performance obligations, but has not yet been received related to electronic banking income and certain insurance income.

Peoples records contract assets for income that has been recognized over a period of time for fulfillment of performance obligations, but payment has not yet been received related to electronic banking income and certain insurance income.

This income typically relates to bonuses for which Peoples is eligible, but will not receive until a certain time in the future.

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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 nine-month period ended September 30, 2024:

The following table details the changes in Peoples' contract assets and contract liabilities for the three-month period ended March 31, 2025:

Contract Assets Contract Liabilities

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Recognition of income previously deferred — ( 555 )

Balance, September 30, 2024 $ 845 $ 5,535

Note 13 Acquisitions

Limestone Bancorp, Inc.

As of the close of business on April 30, 2023, Peoples completed the Limestone Merger.

In connection with the Limestone Merger, Limestone Bank, Inc., which operated 20 branches in Kentucky, merged into Peoples Bank.

As consideration in the Limestone Merger, Limestone shareholders were paid 0.90 common shares of Peoples for each full share of Limestone that was owned at the merger date, resulting in the issuance of 6,827,668 common shares by Peoples, or aggregate consideration of $ 177.9 million.

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

Peoples recorded $( 0.7 ) million in other non-interest expenses related to the Limestone Merger for both the three and nine months ended September 30, 2024.

For the third quarter of 2023, Peoples had $ 4.4 million of acquisition-related non-interest expense which consisted of $ 2.1 million in other non-interest expense, $ 1.3 million in data processing and software expense, $ 0.6 million in salaries and employee benefit costs, and $ 0.4 million in professional fees.

For the nine months ended September 30, 2023, Peoples had $ 15.7 million of acquisition-related non-interest expense which consisted of $ 5.7 million in salaries and employee benefit costs, $ 5.5 million in professional fees, $ 3.0 million in other non-interest expense, $ 1.3 million in data processing and software expense, and $ 0.2 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

Total purchase price $ 177,931

Cash and balances due from banks 6,422

Interest-bearing deposits in other banks 87,115

Total cash and cash equivalents 93,537

Available-for-sale investment securities, at fair value 166,944

Other investment securities 5,716

Total investment securities 172,660

Loans 1,077,929

Allowance for credit losses (on PCD loans) ( 2,051 )

Net loans 1,075,878

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

Bank owned life insurance 31,343

Other intangible assets 27,722

Other assets 36,874

Total assets 1,455,704

Non-interest-bearing 262,727

Interest-bearing 971,457

Total deposits 1,234,184

Short-term borrowings 60,000

Long-term borrowings 39,453

Accrued expenses and other liabilities 12,967

Total liabilities 1,346,604

Net assets 109,100

Goodwill $ 68,831

The goodwill recorded in connection with the Limestone Merger is related to expected synergies to be gained from the combination of Limestone with Peoples' operations.

The employees retained from the Limestone Merger and the geographic locations

of Limestone should allow Peoples to continue to grow the loan and deposit portfolios while also increasing Peoples' ability to penetrate the new markets, which should benefit Peoples in future periods.

During Peoples' evaluation of intangible assets, it was determined that an assembled workforce intangible asset was not separately recognizable and was included in goodwill.

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

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.

Acquired PCD loans are reported net of the unamortized fair value adjustment.

These loans are recorded at the purchase price, and an allowance for credit losses is determined based upon discrete credit marks, along with discounted cash flow models based upon similar pools of loans, using a similar methodology as for other loans.

The following table details the fair value adjustment for acquired PCD loans as of the acquisition date:

(Dollars in thousands) Par Value Allowance for Credit Losses Non-Credit (Discount) Premium Fair Value

Commercial real estate, other 30,907 ( 1,340 ) ( 2,160 ) 27,407

Commercial and industrial 16,466 ( 379 ) ( 610 ) 15,477

Residential real estate 6,328 ( 228 ) ( 770 ) 5,330

Home equity lines of credit 774 ( 18 ) 11 767

Consumer 1,029 ( 86 ) 78 1,021

Fair value $ 55,504 $ ( 2,051 ) $ ( 3,451 ) $ 50,002

Balance, March 31, 2025 $ 889 $ 5,216

Note 13 Leases

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Lessor Arrangements

Leases originated by Peoples, that Peoples has the positive intent and ability to hold for the foreseeable future or to maturity or payoff, are reported at the net investment in the lease, net of initial direct costs, charge-offs and an allowance for credit losses.

Peoples considers leases past due if any required principal or interest payments have not been received as of the date such payments were required to be made under the terms of the lease agreement.

Upon detection of the reduced ability of a lessee to meet cash flow obligations, a lease is typically charged down to the net realizable value, with the remaining balance placed on nonaccrual status.

Leases deemed to be uncollectable are charged against the allowance for credit losses, while recoveries of previously charged-off amounts are credited to the allowance for credit losses.

Peoples originates sales-type leases through its North Star Leasing division, as these leases are typically structured as dollar buy-out, whereby the lessee pays one dollar at maturity of the lease to purchase the equipment, or as equipment finance agreements.

Peoples began originating leases with the acquisition of leases from NSL and increased its portfolio with the acquisition of Vantage.

The leases for NSL were determined to be sales-type leases, as the premise for the leases is dollar buy-out, whereby the lessee pays one dollar at maturity of the lease to purchase the equipment.

The leases for Vantage were determined to be primarily sales-type leases, as the payment structure and term triggered that accounting treatment, whereby either (i) the lease is structured as a fair market value buyout, whereby the lessee has the option to purchase the leased equipment at its fair market value at maturity of the lease, or (ii) the lessee purchases the leased equipment for one dollar at maturity of the lease.

Originated leases are primarily classified as sales-type leases, and to a lesser extent, operating leases.

These leases do not typically contain residual value guarantees;

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, direct financing leases, or operating leases based primarily on whether they include a dollar buy-out or a fair market value buy-out, respectively.

however, Peoples reduces its residual asset risk by obtaining a security deposit from the lessee.

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

Equipment leases relate to information technology, restaurant, manufacturing, healthcare, and other equipment.

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

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.

Equipment leases relate to automotive, construction, healthcare, manufacturing, office, restaurant, information technology and other equipment.

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

Operating leases are leases that do not meet the criteria of a sales-type lease or a finance lease.

When Peoples originates an operating lease, it records an operating lease asset recognized in “Other assets” which is depreciated over its useful life.

Operating leases assets are assessed for impairment consistent with Peoples’ fixed assets.

Sales-type leases originated by Peoples, that Peoples has the positive intent and ability to hold for the foreseeable future or to maturity or payoff, are reported at the net investment of the lease, net of initial direct costs, charge-offs and an allowance for credit losses.

Peoples considers leases past due if any required payments have not been received as of the date such payments were required to be made under the terms of the lease agreement.

Upon detection of the reduced ability of a lessee to meet cash flow obligations, leases are typically charged down to the net realizable value, with the residual balance placed on nonaccrual status.

Leases deemed to be uncollectable are charged against the allowance for credit losses, while recoveries of previously charged-off amounts are credited to the allowance for credit losses.

Lease income noted in the table below includes (i) operating lease income, (ii) gains on the early termination of leases, net of any associated purchase accounting adjustments (iii) month-to-month lease payments in excess of net investment in the lease, (iv) fees received for referrals, (v) gains and losses recognized on the sales of residual assets and (vi) 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 Nine Months Ended

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

Three Months Ended

(Dollars in thousands) March 31, 2025 March 31, 2024

Interest and fees on leases (a) $ 10,198 $ 12,067

Lease income (loss) 1,827 ( 66 ) 4,179 2,730

Other non-interest income (b) 1,242 — 3,079 —

Lease income 3,446 2,021

Total lease income $ 13,644 $ 14,088

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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) September 30, 2024 December 31, 2023

(Dollars in thousands) March 31, 2025 December 31, 2024

Lease payments receivable, at amortized cost $ 431,584 $ 448,027

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(Dollars in thousands) Balance

Remaining three months ending December 31, 2024 $ 49,872

Remaining nine months ending December 31, 2025 $ 102,431

Year ending December 31, 2026 91,918

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Lessee Arrangements

Peoples leases certain banking facilities and equipment under various agreements with original terms providing for fixed monthly payments over periods generally ranging from two to thirty years .

Peoples leases certain banking facilities and equipment under various agreements with original terms providing for fixed monthly payments over periods generally ranging from two to 30 years.

Certain leases may include options to extend or terminate the lease.

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

At March 31, 2025, 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.

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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 Nine Months Ended

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

Three Months Ended

(Dollars in thousands) March 31, 2025 March 31, 2024

Operating lease expense $ 713 $ 735

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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) September 30, 2024 December 31, 2023

(Dollars in thousands) March 31, 2025 December 31, 2024

Other assets $ 10,674 $ 10,419

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Additions for ROU assets obtained during the year $ 852 $ 1,660

During both the three months ended September 30, 2024 and 2023, Peoples paid cash of $ 0.7 million and $ 0.8 million, respectively, for operating leases.

During the nine months ended September 30, 2024 and 2023, Peoples paid cash of $ 2.2 million and $ 2.2 million, respectively, for operating leases.

During both the three months ended March 31, 2025 and 2024, Peoples paid cash of $ 0.7 million for operating leases.

The following table summarizes the maturity of remaining lease liabilities:

(Dollars in thousands) Balance

Remaining three months ending December 31, 2024 $ 726

Remaining nine months ending December 31, 2025 $ 1,911

Year ending December 31, 2026 2,351

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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