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Item 1. Financial Statements

2025-07-31 compared with 2025-05-01 · 333 added, 206 removed, 1078 unchanged (33% of the section changed)

9 unchanged sentences

Total cash and cash equivalents 186,075 217,664

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)

Available-for-sale investment securities, at fair value (amortized cost of $ 1,170,092 at June 30, 2025 and $ 1,229,382 at December 31, 2024) (a)

1,051,497 1,083,555

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)

Held-to-maturity investment securities, at amortized cost (fair value of $ 831,611 at June 30, 2025 and $ 692,499 at December 31, 2024) (a)

900,019 774,800

Other investment securities 51,322 60,132

Other investments 67,538 60,132

Total investment securities (a) 2,019,054 1,918,487

17 unchanged sentences

Stockholders’ equity

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

Preferred shares, no par value, 50,000 shares authorized, no shares issued at June 30, 2025 or at December 31, 2024

Common shares, no par value, 50,000,000 shares authorized, 36,808,227 shares issued at June 30, 2025 and 36,782,601 shares issued at December 31, 2024, including at each date shares held in treasury

868,493 866,844

1 unchanged sentence

Accumulated other comprehensive loss, net of deferred income taxes ( 90,272 ) ( 110,385 )

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

Treasury stock, at cost, 1,219,408 shares at June 30, 2025 and 1,311,175 shares at December 31, 2024

( 31,123 ) ( 32,978 )

1 unchanged sentence

Total liabilities and stockholders’ equity $ 9,540,608 $ 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 $ 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."

(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 both June 30, 2025 and at December 31, 2024.

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

3 unchanged sentences

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) 2025 2024 2025 2024

14 unchanged sentences

Non-interest income:

Insurance income 6,054 6,498

Electronic banking income 6,272 6,470 12,157 12,516

Trust and investment income 5,281 4,999 10,342 9,598

Deposit account service charges 4,015 4,223

Insurance income 4,549 4,109 10,603 10,607

Lease income 4,189 2,147 7,635 4,163

Deposit account service charges 4,059 4,339 8,074 8,562

Bank owned life insurance income 1,112 1,037 2,245 2,537

12 unchanged sentences

Federal Deposit Insurance Corporation ("FDIC") insurance expense

1,251 1,251 2,502 2,437

Other loan expenses 1,213 1,036 2,332 2,112

Operating lease expense 1,053 788 2,038 1,427

Franchise tax expense 929 881

Marketing expense 718 681 1,621 1,737

Communication expense 734 799

Travel and entertainment expense 713 530 1,213 1,138

Communication expense 712 736 1,446 1,535

Franchise tax expense 678 760 1,607 1,641

Other non-interest expense 4,246 5,864 8,849 9,603

13 unchanged sentences

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited)

Three Months Ended

Three Months Ended Six Months Ended

June 30, June 30,

(Dollars in thousands) 2025 2024 2025 2024

5 unchanged sentences

Reclassification adjustment for net gain included in net income — 353 2 354

Related tax (expense) benefit — —

Related tax expense — ( 82 ) — ( 82 )

Net effect on other comprehensive income (loss) 5,681 ( 915 ) 20,882 ( 8,461 )

Cash flow hedges:

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

Net (loss) gain arising during the period ( 52 ) 373 ( 288 ) 1,526

Related tax benefit (expense) 12 ( 88 ) 67 ( 367 )

Net effect on other comprehensive (loss) income ( 507 ) 196

Reclassification adjustment for net loss included in net income ( 289 ) ( 816 ) ( 714 ) ( 1,713 )

Related tax benefit 67 193 166 412

Net effect on other comprehensive loss ( 262 ) ( 338 ) ( 769 ) ( 142 )

Total other comprehensive income (loss), net of tax 5,419 ( 1,253 ) 20,113 ( 8,603 )

7 unchanged sentences

(Dollars in thousands)

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

Net income — 21,212 — — 21,212

Other comprehensive income, net of tax — — 5,419 — 5,419

Cash dividends declared — ( 14,616 ) — — ( 14,616 )

Reissuance of treasury stock for common share awards ( 145 ) — — 145 —

Reissuance of treasury stock for deferred compensation plan for Boards of Directors — — — 369 369

Repurchase of treasury stock in connection with employee incentive program and compensation plan for Boards of Directors — — — ( 369 ) ( 369 )

Common shares repurchased under share repurchase program then in effect — — — ( 455 ) ( 455 )

Common shares issued under dividend reinvestment plan 702 — — — 702

Common shares issued under compensation plan for Boards of Directors 22 — — 109 131

Common shares issued under employee stock purchase plan 40 — — 200 240

Stock-based compensation 1,458 — — — 1,458

Other — 1,438 — — 1,438

Balance, June 30, 2025 $ 868,493 $ 406,252 $ ( 90,272 ) $ ( 31,123 ) $ 1,153,350

Accumulated Other Comprehensive Loss Total Stockholders' Equity

Common Shares Retained Earnings Treasury Stock

(Dollars in thousands)

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

3 unchanged sentences

Reissuance of treasury stock for common share awards ( 3,399 ) — — 3,399 —

Reissuance of treasury stock for deferred compensation plan for Boards of Directors — — — 369 369

Repurchase of treasury stock in connection with employee incentive program and compensation plan for Boards of Directors — — — ( 2,123 ) ( 2,123 )

Common shares repurchased under share repurchase program — — — ( 455 ) ( 455 )

Common shares issued under dividend reinvestment plan 1,037 — — — 1,037

2 unchanged sentences

Stock-based compensation 3,888 — — — 3,888

Other — 1,438 — — 1,438

Balance, June 30, 2025 $ 868,493 $ 406,252 $ ( 90,272 ) $ ( 31,123 ) $ 1,153,350

Accumulated Other Comprehensive Loss Total Stockholders' Equity

Common Shares Retained Earnings Treasury Stock

(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

3 unchanged sentences

Net income — 58,591 — — 58,591

Other comprehensive loss, net of tax — — ( 7,350 ) — ( 7,350 )

Other comprehensive loss, excluding pension settlement, net of tax — — ( 8,603 ) — ( 8,603 )

Cash dividends declared — ( 27,942 ) — — ( 27,942 )

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

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

See Notes to the Unaudited Condensed Consolidated Financial Statements

2 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

Three Months Ended

Six Months Ended

(Dollars in thousands) 2025 2024

8 unchanged sentences

Proceeds from principal payments 56,165 18,812

Other investment securities:

Other investments:

Purchases ( 23,211 ) ( 18,327 )

5 unchanged sentences

Investment in limited partnership and tax credit funds — ( 2,919 )

Other ( 1,053 ) —

Net cash used in investing activities ( 330,964 ) ( 273,382 )

2 unchanged sentences

Net increase in interest-bearing deposits 23,453 240,446

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

Net increase (decrease) in short-term borrowings 203,386 ( 118,388 )

Proceeds from long-term borrowings 5,989 35,561

5 unchanged sentences

Proceeds from issuance of common shares 991 850

Net cash (used in) provided by financing activities ( 47,315 ) 89,074

Net (decrease) increase in cash and cash equivalents ( 30,686 ) 2,998

Other 1,007 55

Net cash provided by financing activities 214,391 13,408

Net decrease in cash and cash equivalents ( 31,589 ) ( 190,851 )

Cash and cash equivalents at beginning of period 217,664 426,722

16 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’ 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.

Management has evaluated all significant events and transactions that occurred after June 30, 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.

The impact of such changes are not considered material to Peoples' financial statements.

Intercompany accounts and transactions have been eliminated.

11 unchanged sentences

From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board ("FASB") or other standard setting bodies that are adopted by Peoples as of the required effective dates.

Refer to "Note 1 Summary of Significant Accounting Policies" of the Notes to the Consolidated Financial Statements included in Peoples’ 2024 Form 10-K.

Refer to "Note 1 Summary of Significant Accounting Policies" of the Notes to the Consolidated Financial Statements included in Peoples’ 2024 Form 10-K for the impact of recently issued standards impacting Peoples.

Unless otherwise discussed, management believes the impact of any recently issued standards, including those issued but not yet effective, will not have a material impact on Peoples' financial statements taken as a whole.

6 unchanged sentences

Assets and liabilities are assigned to a level within the fair value hierarchy based on the lowest level of significant input used to measure fair value.

Assets and liabilities may change levels within the fair value hierarchy due to market conditions or other circumstances.

Assets and liabilities may change levels within the fair value hierarchy due to market conditions or other

circumstances.

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

March 31, 2025 December 31, 2024

June 30, 2025 December 31, 2024

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

14 unchanged sentences

Derivative liabilities (d) $ — $ 10,658 $ — $ 17,046

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

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

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

12 unchanged sentences

Derivative Assets and Derivative Liabilities :

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).

The fair values for derivative financial instruments are determined based on third-party models, which leverage 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 March 31, 2025 and December 31, 2024.

Non-Recurring Fair Value Measurements at Reporting Date

March 31, 2025 December 31, 2024

June 30, 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 $ 64 and $ 166 at March 31, 2025 and at December 31, 2024, respectively.

(a) Loans held for sale are presented gross of a valuation allowance of $ 80 and $ 166 at June 30, 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 March 31, 2025 December 31, 2024

(Dollars in thousands) Fair Value Hierarchy Level June 30, 2025 December 31, 2024

Carrying Amount Fair Value Carrying Amount Fair Value

7 unchanged sentences

Total held-to-maturity securities 900,256 831,611 775,037 692,499

Other investment securities:

Other investment securities at cost:

Federal Home Loan Bank ("FHLB") stock N/A 14,797 14,797 24,606 24,606

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 investments:

Other investments at cost:

Federal Home Loan Bank ("FHLB") stock 3 30,501 30,501 24,606 24,606

Federal Reserve Bank ("FRB") stock 3 27,114 27,114 27,114 27,114

Other investments (b) 3 3,780 3,780 3,073 3,073

Total other investments at cost 61,395 61,395 54,793 54,793

Loans and leases, net of deferred fees and costs (c) 3 6,601,589 6,553,043 6,358,003 6,240,751

3 unchanged sentences

Long-term borrowings 2 232,391 240,997 238,073 258,195

(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

(a) Obligations of states and political subdivisions are presented gross of an allowance for credit losses of $ 237 at both June 30, 2025 and December 31, 2024.

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

(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.

(c) Loans and leases, net of deferred fees and costs, are presented gross of an allowance for credit losses of $ 74.7 million and $ 63.3 million at June 30, 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.

6 unchanged sentences

The fair values used by Peoples are obtained from an independent pricing service and represent fair values determined by pricing models using a market approach that considers observable market data, such as interest rate volatility, relevant yield curves, credit spreads and prices from market makers and live trading systems (Level 2).

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.

Other Investment Securities:

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

FHLB and FRB stock are both recorded at cost.

Other Investments:

FHLB and FRB stock are both recorded at historical cost.

Other investments are otherwise primarily comprised of investments accounted for under the cost method due to the level of control Peoples exercises over the investee.

These investments are not actively traded in an open market as sales for these types of investments are rare (Level 3).

Loans and Leases, Net of Deferred Fees and Costs:

5 unchanged sentences

Bank Owned Life Insurance:

Peoples' bank owned life insurance policies are recorded at their cash surrender value (Level 2).

Peoples' bank owned life insurance policies are recorded at their cash surrender value, which approximates fair value (Level 2).

Peoples recognizes tax-exempt income from the periodic increases in the cash surrender value of these policies and from death benefits.

13 unchanged sentences

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

March 31, 2025

June 30, 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 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) 2025 2024 2025 2024

11 unchanged sentences

Unrealized Loss

March 31, 2025

June 30, 2025

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, 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.

At June 30, 2025, management concluded that no individual securities at an unrealized loss position required an allowance for credit losses.

At June 30, 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 June 30, 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 June 30, 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 June 30, 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

March 31, 2025

June 30, 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 March 31, 2025 or December 31, 2024.

There were no sales of held-to-maturity investment securities during the periods ended June 30, 2025 or December 31, 2024.

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

1 unchanged sentence

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.

Peoples reported $ 0.2 million of allowance for credit losses for held-to-maturity securities at both June 30, 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

March 31, 2025

June 30, 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 March 31, 2025.

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 March 31, 2025.

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, 2025.

The weighted-average yields are based on the amortized cost and are computed on a fully taxable-equivalent basis using a federal statutory corporate income tax rate of 21 % at June 30, 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.

14 unchanged sentences

Total weighted-average yield 1.91 % 1.90 % 4.15 % 4.02 % 3.98 %

Other Investment Securities

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

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

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

Other Investments

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

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

(Dollars in thousands) June 30, 2025 December 31, 2024

FHLB stock $ 30,501 $ 24,606

2 unchanged sentences

Equity investment securities 3,351 2,645

Other investment securities 869 869

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

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.

Other investments 869 869

Total other investments $ 67,538 $ 60,132

During the six months ended June 30, 2025, Peoples redeemed $ 15.6 million of FHLB stock in order to be in compliance with the requirements of the FHLB.

Peoples purchased $ 21.5 million of additional FHLB stock during the six months ended June 30, 2025, as a result of the FHLB's capital requirements on FHLB advances.

For the three months ended June 30, 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 unrealized gains of $ 7,000 and $ 21,000 , respectively.

For the six months ended June 30, 2025 and 2024, Peoples recognized an unrealized loss of $ 2,000 and an unrealized gain of $ 68,000 , respectively, for the change in fair value of equity investment securities in "Other non-interest income."

At June 30, 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 June 30, 2025.

Pledged Securities

3 unchanged sentences

Carrying Amount

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

(Dollars in thousands) June 30, 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 $ 10.9 million at March 31, 2025 and $ 9.9 million at December 31, 2024.

Interest receivable on investment securities was $ 9.7 million at June 30, 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) March 31,

(Dollars in thousands) June 30,

2025 December 31, 2024

10 unchanged sentences

Total loans, at amortized cost $ 6,601,589 $ 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.

The table above includes net deferred loan origination costs of $ 19.7 million and $ 20.2 million at June 30, 2025 and at December 31, 2024, respectively.

The remaining unamortized net discount included in the amortized cost of loans and leases was $ 12.9 million and $ 19.5 million at June 30, 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 $ 24.1 million at March 31, 2025 and $ 23.1 million at December 31, 2024.

Total interest receivable on loans was $ 22.7 million at June 30, 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:

March 31, 2025 December 31, 2024

June 30, 2025 December 31, 2024

(Dollars in thousands) Nonaccrual (a)

10 unchanged sentences

Total loans, at amortized cost $ 34,485 $ 6,126 $ 34,129 $ 8,637

(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.

(a) There were $ 0.0 million and $ 5.7 million of nonaccrual loans for which there was no allowance for credit losses at June 30, 2025 and at December 31, 2024, respectively.

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

The decrease in accruing loans 90+ days past due at June 30, 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 $ 1.4 million and $ 1.0 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.

2 unchanged sentences

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

March 31, 2025

June 30, 2025

Construction $ — $ — $ — $ — $ 341,313 $ 341,313

21 unchanged sentences

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

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.

Delinquency trends improved slightly, as 99.1 % of Peoples' loan portfolio was considered “current” at June 30, 2025, compared to 98.7 % at December 31, 2024.

Pledged Loans

2 unchanged sentences

Loans pledged are summarized as follows:

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

(Dollars in thousands) June 30, 2025 December 31, 2024

Loans pledged to FHLB $ 1,221,706 $ 1,218,496

29 unchanged sentences

Consumer loans and other smaller-balance loans are evaluated and categorized as "substandard," "doubtful" or "loss" based upon the regulatory definition of these classes and consistent with regulatory requirements.

Leases are categorized as "special mention", "substandard", or "loss" based upon delinquency status and the prospect of collecting the remaining net investment balance owed under the lease.

Leases are categorized as "special mention", "substandard", "doubtful", or "loss" based upon delinquency status and the prospect of collecting the remaining net investment balance owed under the lease.

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, 2025:

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, 2025:

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

1 unchanged sentence

Pass $ 27,127 $ 111,863 $ 153,579 $ 34,756 $ 6,531 $ 4,812 $ — $ 512 $ 338,668

Special mention — — — — — 113 — — 113

Substandard — — 1,137 1,508 — — — — 2,645

Total 27,127 111,863 154,716 36,264 6,531 4,812 — 512 341,313

Current period gross charge-offs — — — — — — —

Current period gross charge-offs (a) — — — — — — —

Commercial real estate, other

3 unchanged sentences

Doubtful — — — — — 1,849 — — 1,849

Loss — — — — — 2 — — 2

Total 164,244 147,541 306,973 390,873 391,632 802,717 44,234 4,456 2,248,214

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

Current period gross charge-offs (a) — — — 156 — 94 250

Commercial and industrial

Pass 146,063 262,641 193,126 114,098 122,694 221,633 243,170 1,663 1,303,425

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

Special mention 751 69 5,419 3,633 6,405 6,940 39,428 — 62,645

2 unchanged sentences

Total 146,814 267,282 202,224 130,287 136,741 232,444 291,590 7,856 1,407,382

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

Current period gross charge-offs (a) — 19 161 25 157 574 936

Premium Finance

1 unchanged sentence

Total 219,845 57,030 699 48 — — — — 277,622

Current period gross charge-offs — 33 14 24 — — 71

Current period gross charge-offs (a) — 72 68 24 — — 164

Pass 99,433 121,736 100,984 42,539 16,020 4,921 — — 385,633

3 unchanged sentences

Total 99,631 125,172 107,160 46,193 16,964 4,932 — — 400,052

Current period gross charge-offs — 191 1,938 2,690 574 261 5,654

Current period gross charge-offs (a) — 1,028 4,166 4,151 945 463 10,753

Residential real estate

3 unchanged sentences

Total 56,495 73,070 63,802 81,780 123,915 478,906 — — 877,968

Current period gross charge-offs — — 27 — 54 61 142

Current period gross charge-offs (a) — — 27 8 27 80 142

Home equity lines of credit

3 unchanged sentences

Total 24,575 54,046 35,350 36,759 25,537 65,496 22 3,385 241,785

Current period gross charge-offs — — — — — — —

Current period gross charge-offs (a) — — 12 — — — 12

Consumer, indirect

3 unchanged sentences

Total 159,903 205,223 141,376 114,691 40,499 30,982 — — 692,674

Current period gross charge-offs 14 635 637 388 134 58 1,866

Current period gross charge-offs (a) 194 1,166 1,206 685 210 98 3,559

Consumer, direct

5 unchanged sentences

Total 34,502 30,404 19,988 16,100 6,883 5,738 — — 113,615

Current period gross charge-offs 11 48 23 57 9 7 155

Current period gross charge-offs (a) 21 89 49 70 13 9 251

Deposit account overdrafts 964 — — — — — — — 964

Current period gross charge-offs 277 — — — — — 277

Current period gross charge-offs (a) 522 — — — — — 522

Total loans, at amortized cost 934,100 1,071,631 1,032,288 852,995 748,702 1,626,027 335,846 16,209 6,601,589

Total current period gross charge-offs $ 302 $ 907 $ 2,639 $ 3,315 $ 820 $ 777 $ 8,760

Total current period gross charge-offs (a) $ 737 $ 2,374 $ 5,689 $ 5,119 $ 1,352 $ 1,318 $ 16,589

(a) Current period gross charge-offs are for the six months ended as of June 30, 2025.

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

5 unchanged sentences

Total 69,862 163,766 48,668 30,592 1,845 13,655 — — 328,388

Current period gross charge-offs — — — — — — —

Current period gross charge-offs (a) — — — — — — —

Commercial real estate, other

4 unchanged sentences

Total 131,387 223,101 380,592 363,953 215,708 799,250 42,022 — 2,156,013

Current period gross charge-offs — — 376 — — 55 431

Current period gross charge-offs (a) — — 376 — — 55 431

Commercial and industrial

4 unchanged sentences

Total 312,610 212,047 152,222 164,166 82,001 170,268 254,331 4,828 1,347,645

Current period gross charge-offs — 14 — 17 105 532 668

Current period gross charge-offs (a) — 14 — 17 105 532 668

Premium finance

1 unchanged sentence

Total 265,504 3,837 94 — — — — — 269,435

Current period gross charge-offs 67 109 33 — — — 209

Term Loans at Amortized Cost by Origination Year

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

Current period gross charge-offs (a) 67 109 33 — — — 209

Pass 175,449 125,664 61,064 24,181 4,661 2,153 — — 393,172

3 unchanged sentences

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

Current period gross charge-offs 1,315 5,623 5,421 2,308 301 138 15,106

Current period gross charge-offs (a) 1,315 5,623 5,421 2,308 301 138 15,106

Residential real estate

3 unchanged sentences

Total 77,451 67,804 85,206 129,339 52,396 422,905 — — 835,101

Current period gross charge-offs — — 46 5 — 237 288

Current period gross charge-offs (a) — — 46 5 — 237 288

Home equity lines of credit

3 unchanged sentences

Total 54,724 37,555 37,915 27,446 16,617 58,380 24 731 232,661

Current period gross charge-offs — — — — — 11 11

Current period gross charge-offs (a) — — — — — 11 11

Consumer, indirect

3 unchanged sentences

Total 239,867 176,672 148,907 57,478 30,543 16,390 — — 669,857

Current period gross charge-offs 497 2,207 1,880 691 141 763 6,179

Current period gross charge-offs (a) 497 2,207 1,880 691 141 763 6,179

Consumer, direct

3 unchanged sentences

Total 45,996 25,674 21,590 9,643 4,184 3,965 — — 111,052

Current period gross charge-offs 2 154 212 51 12 247 678

Current period gross charge-offs (a) 2 154 212 51 12 247 678

Deposit account overdrafts 1,253 — — — — — — — 1,253

Current period gross charge-offs 1,542 $ — $ — $ — $ — $ — 1,542

Current period gross charge-offs (a) 1,542 $ — $ — $ — $ — $ — 1,542

Total loans, at amortized cost 1,375,415 1,041,884 941,034 807,980 408,078 1,487,235 296,377 5,559 6,358,003

Current period gross charge-offs $ 3,423 $ 8,107 $ 7,968 $ 3,072 $ 559 $ 1,983 $ 25,112

Current period gross charge-offs (a) $ 3,423 $ 8,107 $ 7,968 $ 3,072 $ 559 $ 1,983 $ 25,112

(a) Current period gross charge-offs are for the year ended as of December 31, 2024.

Collateral Dependent Loans

16 unchanged sentences

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

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

(Dollars in thousands) June 30, 2025 December 31, 2024

Commercial real estate, other $ 1,839 $ 2,764

2 unchanged sentences

Total collateral dependent loans $ 7,097 $ 4,375

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.

The increase in collateral dependent loans at June 30, 2025, compared to December 31, 2024, was primarily driven by the addition of three NSL leases which totaled approximately $ 1.9 million.

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, 2025 and March 31, 2024, presented by loan classification.

The allowance for credit losses for loans modified for borrowers experiencing financial difficulty is determined based on the allowance for credit losses policy as described in Note 1 Summary of Significant Accounting Policies" of the Notes to the Consolidated Financial Statements included in Peoples' 2024 Form 10-K.

The following tables display the amortized cost of loans that were restructured during the three and six months ended June 30, 2025 and June 30, 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 June 30, 2025

Commercial real estate $ — $ 2,602 $ 2,602 0.12 %

Commercial and industrial — 2,477 2,477 0.18 %

Residential real estate — 192 192 0.02 %

Total $ — $ 5,271 $ 5,271 0.08 %

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 %

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

During the Three Months Ended March 31, 2025

During the Six Months Ended June 30, 2025

Commercial real estate $ — $ 4,441 $ — $ 4,441 0.20 %

1 unchanged sentence

Leasing 10 — 53 63 0.02 %

Residential real estate — 192 — 192 0.02 %

Total $ 10 $ 13,271 $ 53 $ 13,334 0.20 %

During the Three Months Ended March 31, 2024

During the Six Months Ended June 30, 2024

Commercial real estate — 561 — 561 0.03 %

2 unchanged sentences

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 %

1 unchanged sentence

(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 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.

The following tables summarize the financial impacts of loan modifications and payment deferrals made to loans during the three and six months ended June 30, 2025 and June 30, 2024, presented by loan classification.

Weighted-Average Term Extension

During the Three Months Ended March 31, 2025

During the Three Months Ended June 30, 2025

Commercial real estate 4

Commercial and industrial 5

During the Three Months Ended March 31, 2024

Residential real estate 174

During the Three Months Ended June 30, 2024

Commercial and industrial 28

Home equity lines of credit 120

Consumer, indirect 2

Weighted-Average Term Extension

During the Six Months Ended June 30, 2025

Commercial real estate 4

1 unchanged sentence

Residential real estate 174

During the Six Months Ended June 30, 2024

Commercial real estate 6

Commercial and industrial 7

Residential real estate 2

Home equity lines of credit 120

Consumer, indirect 2

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.

1 unchanged sentence

Term Extension (a)

For the Three Months Ended March 31, 2025

For the Three Months Ended June 30, 2025

Commercial real estate $ 494

Total loans that subsequently defaulted $ 494

For the Six Months Ended June 30, 2025

Commercial real estate $ 494

Commercial and industrial 18

Total loans that subsequently defaulted $ 612

For the Three Months Ended March 31, 2024

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

(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.

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

The following table displays an aging analysis of loans that were modified during the 12 months prior to June 30, 2025 and June 30, 2024, respectively, presented by classification and class of financing receivable.

As of June 30, 2025

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

8 unchanged sentences

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

As of March 31, 2024

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)

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.

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

Changes in the allowance for credit losses for the three and six months ended June 30, 2025 and June 30, 2024 are summarized below:

(Dollars in thousands) Beginning Balance, March 31, 2025

Provision for (Recovery of) Credit Losses (a) Charge-offs Recoveries Ending Balance, June 30, 2025

Construction $ 1,156 $ 191 $ — $ — $ 1,347

Commercial real estate, other 17,155 24 ( 35 ) — 17,144

Commercial and industrial 12,783 5,610 ( 556 ) 17 17,854

Premium finance 646 238 ( 93 ) 3 794

Leases 13,575 10,896 ( 5,099 ) 261 19,633

Residential real estate 6,786 ( 723 ) — 50 6,113

Home equity lines of credit 1,863 ( 37 ) ( 12 ) — 1,814

Consumer, indirect 8,696 191 ( 1,693 ) 449 7,643

Consumer, direct 2,474 ( 144 ) ( 96 ) 14 2,248

Deposit account overdrafts 98 167 ( 245 ) 71 91

Total $ 65,232 $ 16,413 $ ( 7,829 ) $ 865 $ 74,681

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

(Dollars in thousands) Beginning Balance, March 31, 2024 Provision for (Recovery of) 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, December 31, 2024

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

Provision for (Recovery of) Credit Losses (a) Charge-offs Recoveries Ending Balance, June 30, 2025

Construction $ 878 $ 469 $ — $ — $ 1,347

10 unchanged sentences

(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

(Dollars in thousands) Beginning Balance,

December 31, 2023 Provision for (Recovery of) Credit Losses (a) Charge-offs Recoveries Ending Balance, June 30, 2024

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

10 unchanged sentences

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

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.

During the second quarter of 2025, Peoples recorded a total provision for credit losses on loans of $ 16.4 million, which was primarily driven by (i) net charge offs, (ii) an increase in reserves for individually analyzed loans and leases, (iii) an increase in reserves for leases originated by our North Star Leasing division, (iv) a periodic refresh in loss drivers utilized within the CECL model, (v) deterioration in the economic forecasts used within the CECL model, and (vi) loan growth.

Net charge-offs for the second quarter of 2025 were $ 7.0 million, primarily driven by our North Star Leasing division.

The increase in the allowance for credit losses at June 30, 2025 when compared to at March 31, 2025 was primarily driven by explanations (ii) - (vi) described above.

During the second quarter of 2024, Peoples recorded a provision for credit losses of $ 5.7 million, which was driven by (i) higher net charge-offs, (ii) an increase in reserves for 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 division, partially offset by decreases in net charge-offs on commercial and industrial loans and other commercial real estate loans.

Peoples had recorded an allowance for unfunded commitments of $ 2.4 million and $ 2.0 million as of June 30, 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 Three Months Ended For the Year Ended

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

For the Six Months Ended For the Year Ended

(Dollars in thousands) June 30, 2025 December 31, 2024

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

2 unchanged sentences

Other Intangible Assets

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

Other intangible assets were comprised of the following at June 30, 2025 , and at December 31, 2024 :

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

March 31, 2025

June 30, 2025

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

Intangibles recorded from acquisitions — — — —

Accumulated amortization ( 33,849 ) ( 27,785 ) — ( 61,634 )

11 unchanged sentences

Total other intangibles $ 39,223

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

Th e following table details estimated aggregate future amortization of other intangible assets at June 30, 2025:

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

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

Remaining six months of 2025 $ 2,304 $ 2,061 $ 55 $ 4,420

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

7 unchanged sentences

Peoples’ deposit balances were comprised of the following:

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

(Dollars in thousands) June 30, 2025 December 31, 2024

Retail certificates of deposits ("CDs"):

10 unchanged sentences

Total deposits $ 7,637,208 $ 7,590,205

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

Uninsured deposits were $ 2.0 billion a t June 30, 2025 and 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 $ 725.5 million and $ 656.9 million of the uninsured deposit balances at March 31, 2025 and at December 31, 2024, respectively .

Peoples pledges investment securities against certain governmental deposit accounts, which covered over $ 641.1 million and $ 656.9 million of the uninsured deposit balances at June 30, 2025 and at December 31, 2024, respectively .

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

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

(Dollars in thousands) June 30, 2025 December 31, 2024

3 months or less $ 129,425 $ 180,405

5 unchanged sentences

(Dollars in thousands) Retail Brokered Total

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

Remaining six months ending December 31, 2025 $ 1,254,611 $ 276,589 $ 1,531,200

Year ending December 31, 2026 712,691 16,391 729,082

4 unchanged sentences

Total CDs $ 2,005,322 $ 442,788 $ 2,448,110

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.

At June 30, 2025, Peoples had six effective interest rate swaps, with an aggregate notional value of $ 55.0 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.

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, 2025:

The following table details the progression in Peoples’ common shares and treasury stock during the six months ended June 30, 2025:

Common Shares Treasury

4 unchanged sentences

Grant of restricted common shares — ( 171,393 )

Grant of unrestricted common shares — —

Purchase of treasury stock — 6,302

4 unchanged sentences

Common shares issued under employee stock purchase plan

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

Shares at June 30, 2025 36,808,227 1,219,408

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, 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.

As of June 30, 2025, Peoples had repurchased an aggregate of 488,473 common shares totaling $ 13.9 million under the share repurchase program.

During the second quarter of 2025, Peoples repurchased 17,166 common shares totaling $ 0.5 million under the share repurchase program.

No shares were repurchased during the first quarter of 2025.

Peoples repurchased 100,905 common shares totaling $ 3.0 million during the first six months of 2024, which occurred exclusively during the first quarter of the year.

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, 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:

At June 30, 2025, Peoples had no preferred shares issued or outstanding.

On July 21, 2025, Peoples' Board of Directors declared a quarterly cash dividend of $ 0.41 per common share, payable on August 18, 2025, to shareholders of record on August 4, 2025.

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

First quarter $ 0.40 $ 0.39

Second quarter 0.41 0.40

Third quarter 0.41 0.40

Total dividends declared $ 1.22 $ 1.19

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, 2025:

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

The following table details the change in the components of Peoples’ accumulated other comprehensive (loss) income during the six months ended June 30, 2025, as related items impact the income statement:

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

Balance, December 31, 2024 $ ( 111,829 ) $ 1,444 $ ( 110,385 )

Reclassification adjustments to net income:

Realized loss on securities, net of tax 2 — 2

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

Realized gain on securities, net of tax 2 — 2

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

20,880 ( 769 ) 20,111

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

Balance, June 30, 2025 $ ( 90,947 ) $ 675 $ ( 90,272 )

Note 8 Employee Benefit Plans

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

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.

Matching contributions made by Peoples totaled $ 3.0 million during the six months ended June 30, 2025 and $ 3.1 million for the six months ended June 30, 2024.

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) 2025 2024 2025 2024

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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, 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").

At June 30, 2025, Peoples had entered into six interest rate swap contracts with an aggregate notional value of $ 55.0 million.

Peoples will pay a fixed rate of interest for up to four years while receiving a floating rate component of interest equal to the 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.

At both June 30, 2025 and December 31, 2024, the interest rate swaps were designated as cash flow hedges of $ 55.0 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 and deemed highly effective, all 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 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.

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 (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 six months ended June 30, 2025, and 2024, Peoples recorded reclassifications of losses to earnings of $ 0.7 million and $ 1.7 million, respectively.

During the next 12 months, Peoples estimates that $ 0.9 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,

2025 December 31,

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Pre-tax changes in fair value included in AOCI $ 940 $ 1,885

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

The following table presents changes in fair value and amounts reclassified from AOCI related to cash flow hedges and recorded in AOCI and in the Consolidated Statements of Comprehensive Income:

Three Months Ended Six Months Ended

June 30, June 30,

(Dollars in thousands) 2025 2024 2025 2024

Amount of losses (gains) recorded in AOCI, pre-tax $ 661 $ ( 256 )

Amount of losses recorded in AOCI, pre-tax $ 341 $ 443 $ 1,002 $ 187

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

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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 months ended March 31, 2025, or at or for the year ended December 31, 2024.

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, 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:

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Interest rate swaps related to commercial loans $ 542,787 $ 15,638 $ 453,367 $ 18,742

Netting Adjustments (a) ( 5,054 ) ( 1,783 )

Net Derivative Assets on the Balance Sheet $ 10,584 $ 16,959

Included in "Accrued expenses and other liabilities":

Interest rate swaps related to commercial loans $ 542,787 $ 13,543 $ 453,367 $ 17,100

Netting Adjustments (a) ( 2,885 ) ( 54 )

Net Derivatives Liabilities on the Balance Sheet $ 10,658 $ 17,046

(a) Netting adjustments represent the amounts recorded to convert our derivative assets and liabilities from a gross basis to a net basis in accordance with the applicable accounting guidance.

The net basis takes into account the impact of master netting agreements that allow us to settle derivative contracts with a single counterparty on a net basis.

Total derivative assets and liabilities include these netting adjustments.

Pledged Collateral

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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 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.

At June 30, 2025 and at December 31, 2024, Peoples Bank had no cash pledged, while counterparties had $ 3.7 million of cash pledged at June 30, 2025 and $ 12.3 million of cash pledged at December 31, 2024.

Peoples Bank had no pledged investment securities at June 30, 2025 or at December 31, 2024, while the counterparties had pledged no investment securities at June 30, 2025 and had pledged $ 1.9 million of investment securities 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 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;

In the first six 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 three months ended March 31, 2025:

The following table summarizes the changes to Peoples’ restricted common shares for the six months ended June 30, 2025:

Time-Based Vesting Performance-Based Vesting

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Forfeited ( 10,011 ) 27.12 ( 26,289 ) 29.79

Outstanding at March 31, 2025

Outstanding at June 30, 2025

105,840 $ 27.67 577,214 $ 30.07

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.

The intrinsic value for restricted common shares released was $ 5.7 million for the six months ended June 30, 2025, compared to $ 2.4 million for the six months ended June 30, 2024.

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:

Three Months Ended

Three Months Ended Six Months Ended

June 30, June 30,

(Dollars in thousands) 2025 2024 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 $ 8.7 million at March 31, 2025, which will be recognized over a weighted-average period of 2.2 years.

Total unrecognized stock-based compensation expense related to unvested restricted common share awards was $ 7.6 million at June 30, 2025, which will be recognized over a weighted-average period of 2.0 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) 2025 2024 2025 2024

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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 three-month period ended March 31, 2025:

The following table details the changes in Peoples' contract assets and contract liabilities for the six-month period ended June 30, 2025:

Contract Assets Contract Liabilities

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Recognition of income previously deferred — ( 214 )

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

Balance, June 30, 2025 $ 968 $ 5,568

Note 13 Leases

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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.

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

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

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The table below details Peoples' lease income:

Three Months Ended

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

Three Months Ended Six Months Ended

(Dollars in thousands) June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024

Interest and fees on leases (a) $ 10,287 $ 11,982 $ 20,485 $ 24,049

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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, 2025 December 31, 2024

(Dollars in thousands) June 30, 2025 December 31, 2024

Lease payments receivable, at amortized cost $ 430,198 $ 448,027

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(Dollars in thousands) Balance

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

Remaining six months ending December 31, 2025 $ 96,864

Year ending December 31, 2026 91,899

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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 March 31, 2025, Peoples did not have any leases that met the criteria for finance leases.

At June 30, 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

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

Three Months Ended Six Months Ended

(Dollars in thousands) June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024

Operating lease expense $ 637 $ 733 $ 1,318 $ 1,468

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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) March 31, 2025 December 31, 2024

(Dollars in thousands) June 30, 2025 December 31, 2024

Other assets $ 10,404 $ 10,419

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Additions for ROU assets obtained during the year $ 481 $ 1,660

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

During both the three months ended June 30, 2025 and 2024, Peoples paid cash of $ 0.7 million for operating leases.

During the six months ended June 30, 2025 and 2024, Peoples paid cash of $ 1.3 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, 2025 $ 1,911

Remaining six months ending December 31, 2025 $ 1,269

Year ending December 31, 2026 2,413

7 unchanged sentences

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