What changed in this filing

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Item 1. Financial Statements

2025-10-30 compared with 2025-07-31 · 214 added, 213 removed, 1198 unchanged (26% of the section changed)

3 unchanged sentences

CONSOLIDATED BALANCE SHEETS

September 30,

2025 December 31,

4 unchanged sentences

Total cash and cash equivalents 190,217 217,664

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)

Available-for-sale investment securities, at fair value (amortized cost of $ 1,078,703 at September 30, 2025 and $ 1,229,382 at December 31, 2024) (a)

976,906 1,083,555

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)

Held-to-maturity investment securities, at amortized cost (fair value of $ 872,725 at September 30, 2025 and $ 692,499 at December 31, 2024) (a)

931,824 774,800

19 unchanged sentences

Stockholders’ equity

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

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

Common shares, no par value, 50,000,000 shares authorized, 36,822,901 shares issued at September 30, 2025 and 36,782,601 shares issued at December 31, 2024, including at each date shares held in treasury

870,044 866,844

1 unchanged sentence

Accumulated other comprehensive loss, net of deferred income taxes ( 77,539 ) ( 110,385 )

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

Treasury stock, at cost, 1,205,765 shares at September 30, 2025 and 1,311,175 shares at December 31, 2024

( 30,801 ) ( 32,978 )

1 unchanged sentence

Total liabilities and stockholders’ equity $ 9,623,944 $ 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 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."

4 unchanged sentences

CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)

Three Months Ended Six Months Ended

June 30, June 30,

Three Months Ended Nine Months Ended

September 30, September 30,

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

17 unchanged sentences

Insurance income 4,469 4,271 15,072 14,878

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

Deposit account service charges 4,274 4,520 12,348 13,082

Lease income 3,622 3,045 11,257 7,208

Bank owned life insurance income 1,143 460 3,388 2,997

Mortgage banking income 245 1,051 861 1,615

Net loss on investment securities — ( 353 ) ( 2 ) ( 354 )

Net loss on asset disposals and other transactions ( 478 ) ( 795 ) ( 1,119 ) ( 1,564 )

Net loss on investment securities ( 2,580 ) ( 74 ) ( 2,582 ) ( 428 )

Other non-interest income 1,180 1,075 4,130 3,134

7 unchanged sentences

Electronic banking expense 2,161 1,844 6,204 5,566

Other loan expenses 1,385 1,178 3,717 3,290

Federal Deposit Insurance Corporation ("FDIC") insurance expense

1,284 1,241 3,786 3,678

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

Operating lease expense 1,039 1,010 3,077 2,437

Marketing expense 1,001 971 2,622 2,708

Franchise tax expense 916 917 2,523 2,558

Travel and entertainment expense 796 795 2,009 1,933

Communication expense 664 814 2,110 2,349

Franchise tax expense 678 760 1,607 1,641

Other non-interest expense 3,689 2,537 12,538 12,140

13 unchanged sentences

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited)

Three Months Ended Six Months Ended

June 30, June 30,

Three Months Ended Nine Months Ended

September 30, September 30,

(Dollars in thousands) 2025 2024 2025 2024

Net income $ 29,476 $ 31,684 $ 75,024 $ 90,275

Other comprehensive income (loss):

Other comprehensive income:

Available-for-sale investment securities:

Gross unrealized holding gain (loss) arising during the period 7,408 ( 1,422 ) 27,227 ( 11,309 )

Related tax (expense) benefit ( 1,727 ) 236 ( 6,347 ) 2,576

Gross unrealized holding gain arising during the period 14,218 37,723 41,445 26,414

Related tax expense ( 3,315 ) ( 8,779 ) ( 9,662 ) ( 6,203 )

Reclassification adjustment for net gain included in net income 2,580 74 2,582 428

Related tax expense ( 602 ) ( 18 ) ( 602 ) ( 100 )

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

Net effect on other comprehensive income 12,881 29,000 33,763 20,539

Cash flow hedges:

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

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

Net gain (loss) arising during the period 54 ( 998 ) ( 234 ) 528

Related tax (expense) benefit ( 12 ) 232 55 ( 123 )

Reclassification adjustment for net loss included in net income ( 248 ) ( 700 ) ( 962 ) ( 2,413 )

Related tax benefit 58 163 224 563

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 )

Net effect on other comprehensive income ( 148 ) ( 1,303 ) ( 917 ) ( 1,445 )

Total other comprehensive income, net of tax 12,733 27,697 32,846 19,094

Total comprehensive income $ 42,209 $ 59,381 $ 107,870 $ 109,369

6 unchanged sentences

(Dollars in thousands)

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

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

Net income — 29,476 — — 29,476

2 unchanged sentences

Reissuance of treasury stock for common share awards ( 222 ) — — 222 —

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 — — — ( 208 ) ( 208 )

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

Common shares issued under dividend reinvestment plan 554 — — — 554

3 unchanged sentences

Other — ( 1 ) — — ( 1 )

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

Balance, September 30, 2025 $ 870,044 $ 421,072 $ ( 77,539 ) $ ( 30,801 ) $ 1,182,776

Accumulated Other Comprehensive Loss Total Stockholders' Equity

14 unchanged sentences

Other — 1,437 — — 1,437

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

Balance, September 30, 2025 $ 870,044 $ 421,072 $ ( 77,539 ) $ ( 30,801 ) $ 1,182,776

Accumulated Other Comprehensive Loss Total Stockholders' Equity

1 unchanged sentence

(Dollars in thousands)

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

Net income — 31,684 — — 31,684

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

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

Cash dividends declared — ( 14,174 ) — — ( 14,174 )

Reissuance of treasury stock for common share awards ( 235 ) — — 235 —

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 — — — ( 170 ) ( 170 )

3 unchanged sentences

Stock-based compensation 1,194 — — — 1,194

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

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

Accumulated Other Comprehensive Loss Total Stockholders' Equity

3 unchanged sentences

Net income — 90,275 — — 90,275

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

Other comprehensive income, net of tax — — 19,094 — 19,094

Cash dividends declared — ( 42,116 ) — — ( 42,116 )

7 unchanged sentences

Stock-based compensation 5,530 — — — 5,530

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

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

See Notes to the Unaudited Condensed Consolidated Financial Statements

2 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

Six Months Ended

Nine Months Ended

September 30,

(Dollars in thousands) 2025 2024

14 unchanged sentences

Proceeds from sales of other real estate owned 187 10

Business acquisitions, net of cash received — ( 245 )

Proceeds from bank owned life insurance contracts — 486

14 unchanged sentences

Other 1,296 296

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

Net cash provided by (used in) financing activities 276,547 ( 119,628 )

Net decrease in cash and cash equivalents ( 27,447 ) ( 143,015 )

17 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 June 30, 2025 (this "Form 10-Q").

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.

Management has evaluated all significant events and transactions that occurred after September 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.

15 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 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.

Unless otherwise discussed, management believes the impact of any recently adopted standards will not have a material impact on Peoples' financial statements taken as a whole.

Note 2 Fair Value of Assets and Liabilities

5 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

June 30, 2025 December 31, 2024

September 30, 2025 December 31, 2024

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

31 unchanged sentences

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 June 30, 2025 and December 31, 2024.

Non-Recurring Fair Value Measurements at Reporting Date

June 30, 2025 December 31, 2024

September 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 $ 80 and $ 166 at June 30, 2025 and at December 31, 2024, respectively.

(a) Loans held for sale are presented gross of a valuation allowance of $ 56 and $ 166 at September 30, 2025 and at December 31, 2024, respectively.

Collateral Dependent Loans:

6 unchanged sentences

OREO, included in "Other assets" on the Unaudited Consolidated Balance Sheets, is comprised primarily of commercial and residential real estate properties acquired by Peoples in satisfaction of a loan.

OREO obtained in satisfaction of a loan is recorded at the lower of cost or estimated fair value, less estimated costs to sell the property.

OREO is recorded at the lower of cost or estimated fair value, less estimated costs to sell the property.

The carrying value of OREO is not re-measured to fair value on a recurring basis, but is based on recent real estate appraisals and is updated at least annually.

These appraisals may utilize a single valuation approach or a combination of approaches, including the comparable sales approach and the income approach.

These appraisals may utilize a single valuation approach or a combination of approaches, including the comparable sales and income approaches.

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

2 unchanged sentences

Fair Value Measurements of Other Financial Instruments

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

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

Carrying Amount Fair Value Carrying Amount Fair Value

18 unchanged sentences

Long-term borrowings 2 227,282 247,326 238,073 258,195

(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

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

(b) "Other investments", as reported on the Unaudited Consolidated Balance Sheets, also included equity investment securities at September 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 $ 74.7 million and $ 63.3 million at June 30, 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 $ 74.9 million and $ 63.3 million at September 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.

18 unchanged sentences

Bank Owned Life Insurance:

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

Peoples' bank owned life insurance ("BOLI") 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

June 30, 2025

September 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 June 30 were as follows:

Three Months Ended Six Months Ended

June 30, June 30,

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

Three Months Ended Nine Months Ended

September 30, September 30,

(Dollars in thousands) 2025 2024 2025 2024

11 unchanged sentences

Unrealized Loss

June 30, 2025

September 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 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.

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

At September 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 September 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 September 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 September 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

June 30, 2025

September 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 June 30, 2025 or December 31, 2024.

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

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

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

The majority of People's held-to maturity investment securities are agency-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 June 30, 2025, and December 31, 2024.

Peoples reported $ 0.2 million of allowance for credit losses for held-to-maturity investment securities at both September 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

June 30, 2025

September 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 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.

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, 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 September 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.

17 unchanged sentences

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

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

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

FHLB stock $ 26,013 $ 24,606

4 unchanged sentences

Total other investments $ 63,991 $ 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.

During the nine months ended September 30, 2025, Peoples redeemed $ 31.7 million of FHLB stock in order to be in compliance with the requirements of the FHLB.

Peoples purchased $ 33.1 million of additional FHLB stock during the nine months ended September 30, 2025, as a result of the FHLB's capital requirements on FHLB advances.

For the three months ended September 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 an unrealized loss of $ 26,000 and an unrealized gain of $ 12,000 , respectively.

For the nine months ended September 30, 2025 and 2024, Peoples recognized an unrealized loss of $ 28,000 and an unrealized gain of $ 81,000 , respectively, for the change in fair value of equity investment securities in "Other non-interest income."

At September 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 September 30, 2025.

Pledged Securities

3 unchanged sentences

Carrying Amount

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

(Dollars in thousands) September 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 $ 9.7 million at June 30, 2025 and $ 9.9 million at December 31, 2024.

Interest receivable on investment securities was $ 10.9 million at September 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) June 30,

(Dollars in thousands) September 30,

2025 December 31, 2024

10 unchanged sentences

Total loans, at amortized cost $ 6,728,728 $ 6,358,003

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.

The table above includes net deferred loan origination costs of $ 20.1 million and $ 20.2 million at September 30, 2025 and at December 31, 2024, respectively.

The remaining unamortized net discount included in the amortized cost of loans and leases was $ 11.4 million and $ 19.5 million at September 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 $ 22.7 million at June 30, 2025 and $ 23.1 million at December 31, 2024.

Total interest receivable on loans was $ 23.9 million at September 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:

June 30, 2025 December 31, 2024

September 30, 2025 December 31, 2024

(Dollars in thousands) Nonaccrual (a)

10 unchanged sentences

Total loans, at amortized cost $ 33,889 $ 4,898 $ 34,129 $ 8,637

(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.

(a) There were $ 1.9 million and $ 5.7 million of nonaccrual loans for which there was no allowance for credit losses at September 30, 2025 and at December 31, 2024, respectively.

During the first nine months of 2025, nonaccrual loans decreased slightly compared to at December 31, 2024, which was primarily due to decreases in other commercial real estate and commercial and industrial loans, partially offset by an uptick in nonaccrual leases and residential real estate loans.

The decrease in accruing loans 90+ days past due at September 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 $ 2.5 million and $ 0.7 million, respectively.

The delinquent premium finance loans carry low credit risk, due to the ability to cancel premiums and recover the most, if not all 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

June 30, 2025

September 30, 2025

Construction $ — $ — $ — $ — $ 261,048 $ 261,048

21 unchanged sentences

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

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.

Delinquency trends improved slightly, as 99.0 % of Peoples' loan portfolio was considered “current” at September 30, 2025, compared to 98.7 % at December 31, 2024.

Pledged Loans

2 unchanged sentences

Loans pledged are summarized as follows:

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

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

Loans pledged to FHLB $ 1,262,210 $ 1,218,496

31 unchanged sentences

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

The following table summarizes the risk category of loans within Peoples' loan portfolio, including acquired loans, based upon the most recent analysis performed at June 30, 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 September 30, 2025:

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

39 unchanged sentences

Substandard — — 50 257 16 554 — — 877

Loss — — — — — 10 — — 10

Total 39,014 53,024 34,116 35,990 24,859 60,358 22 3,362 247,383

18 unchanged sentences

Total current period gross charge-offs (a) $ 1,785 $ 4,156 $ 8,332 $ 7,085 $ 1,714 $ 1,358 $ 24,430

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

(a) Current period gross charge-offs are for the nine months ended as of September 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:

79 unchanged sentences

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

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

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

Commercial real estate, other $ 687 $ 2,764

2 unchanged sentences

Total collateral dependent loans $ 5,232 $ 4,375

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.

Collateral dependent loans increased at September 30, 2025, compared to December 31, 2024, and were driven by the inclusion of three large NSL relationships and two large commercial and industrial relationships, both totaling approximately $ 1.9 million each.

Modifications for Borrowers Experiencing Financial Difficulty

8 unchanged sentences

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)

The following tables display the amortized cost of loans that were restructured during the three and nine months ended September 30, 2025 and September 30, 2024, presented by loan classification.

(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

During the Three Months Ended September 30, 2025

Commercial real estate $ — $ 1,037 $ 1,037 0.04 %

Commercial and industrial — 2,704 2,704 0.18 %

Residential real estate — 192 192 0.02 %

Leases — 29 29 0.01 %

Home equity lines of credit — 47 47 0.02 %

Total $ — $ 3,817 $ 3,817 0.06 %

During the Three Months Ended June 30, 2024

During the Three Months Ended September 30, 2024

Commercial real estate $ — $ 561 $ 561 0.03 %

Commercial and industrial — 9,057 9,057 0.72 %

Leasing 174 — 174 0.04 %

Home equity lines of credit — 64 64 0.03 %

Leases 14 637 651 0.15 %

Residential real estate — 17 17 — %

Consumer, indirect 14 1 15 — %

3 unchanged sentences

Payment Delay (Only)

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

During the Six Months Ended June 30, 2025

During the Nine Months Ended September 30, 2025

Commercial real estate $ — $ 3,084 $ — $ 3,084 0.13 %

Commercial and industrial — 10,880 — 10,880 0.73 %

Leasing 10 — 53 63 0.02 %

Leases 6 29 39 74 0.02 %

Residential real estate — 188 — 188 0.02 %

Home equity lines of credit — 47 — 47 0.02 %

Total $ 6 $ 14,228 $ 39 $ 14,273 0.21 %

During the Six Months Ended June 30, 2024

During the Nine Months Ended September 30, 2024

Commercial real estate — 1,122 — 1,122 0.05 %

Commercial and industrial — 19,148 — 19,148 1.53 %

Leasing 199 — — 199 0.05 %

Leases 214 637 — 851 0.20 %

Residential real estate — 90 — 90 0.01 %

5 unchanged sentences

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.

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

Weighted-Average Term Extension

During the Three Months Ended June 30, 2025

During the Three Months Ended September 30, 2025

Commercial real estate 6

Commercial and industrial 3

Residential real estate 174

During the Three Months Ended June 30, 2024

Commercial and industrial 28

Home equity lines of credit 240

During the Three Months Ended September 30, 2024

Commercial real estate 6

Commercial and industrial 7

Residential real estate 1

Consumer, indirect 13

Weighted-Average Term Extension

During the Six Months Ended June 30, 2025

During the Nine Months Ended September 30, 2025

Commercial real estate 4

1 unchanged sentence

Residential real estate 174

During the Six Months Ended June 30, 2024

Home equity lines of credit 240

During the Nine Months Ended September 30, 2024

Commercial real estate 6

6 unchanged sentences

Term Extension (a)

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

For the Three Months Ended September 30, 2025

Commercial and industrial 405

Total loans that subsequently defaulted $ 405

For the Three Months Ended June 30, 2024

Commercial real estate $ 193

For the Three Months Ended September 30, 2024

Total loans that subsequently defaulted $ 26

For the Nine Months Ended September 30, 2025

Commercial and industrial 423

Residential real estate 76

Total loans that subsequently defaulted $ 423

For the Six Months Ended June 30, 2024

For the Nine Months Ended September 30, 2024

Commercial real estate $ 193

4 unchanged sentences

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 June 30, 2025 and June 30, 2024, respectively, presented by classification and class of financing receivable.

As of June 30, 2025

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

As of September 30, 2025

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

1 unchanged sentence

Commercial and industrial — — 423 423 10,625 11,048

Leasing — — 100 100 65 165

Leases 25 — — 25 49 74

Residential real estate — — — — 188 188

Home equity lines of credit 47 — — 47 92 139

Consumer, indirect — — 10 10 — 10

Total loans modified (a)

1 unchanged sentence

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

As of June 30, 2024

As of September 30, 2024

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

Construction $ — $ 70 $ — $ 70 $ — $ 70

Commercial real estate $ — $ — $ 193 $ 193 $ 2,311 $ 2,504

Commercial and industrial 50 — 28 78 11,363 11,441

Leasing — — — — 199 199

Leases — — 26 26 174 200

Residential real estate — — 34 34 63 97

8 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 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

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

(Dollars in thousands) Beginning Balance, June 30, 2025

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

Construction $ 1,347 $ ( 95 ) $ — $ — $ 1,252

10 unchanged sentences

(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

(Dollars in thousands) Beginning Balance, June 30, 2024 Provision for (Recovery of) Credit Losses (a) Charge-offs Recoveries Ending Balance, September 30, 2024

Construction $ 673 $ 181 $ — $ — $ 854

11 unchanged sentences

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

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

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

Construction $ 878 $ 374 $ — $ — $ 1,252

11 unchanged sentences

(Dollars in thousands) Beginning Balance,

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

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

Construction $ 699 $ 155 $ — $ — $ 854

10 unchanged sentences

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

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.

During the third quarter of 2025, Peoples recorded a total provision for credit losses on loans of $ 7.0 million, which was primarily driven by (i) net charge offs, (ii) loan growth, and (iii) a slight deterioration in the economic forecasts used within the current expected credit loss ("CECL") model, partially offset by reductions in reserves for individually analyzed loans and leases.

Net charge-offs for the third quarter of 2025 were $ 6.8 million, primarily driven by our NSL division.

The increase in the allowance for credit losses at September 30, 2025 when compared to at June 30, 2025, was driven by the loan growth and the deterioration of economic forecasts, partially offset by a decrease in individually analyzed loans and leases.

During the third quarter of 2024, Peoples recorded a provision for credit losses of $ 6.5 million, which was driven by 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.

Peoples had recorded allowances for unfunded commitments of $ 2.7 million and $ 2.0 million as of September 30, 2025 and as of 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 Six Months Ended For the Year Ended

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

For the Nine Months Ended For the Year Ended

(Dollars in thousands) September 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 June 30, 2025 , and at December 31, 2024 :

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

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

June 30, 2025

September 30, 2025

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

12 unchanged sentences

Total other intangibles $ 39,223

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

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

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

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

Remaining three months of 2025 $ 1,152 $ 1,030 $ 27 $ 2,209

2026 3,736 3,036 16 6,788

7 unchanged sentences

Peoples’ deposit balances were comprised of the following:

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

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

Retail certificates of deposits ("CDs"):

10 unchanged sentences

Total deposits $ 7,632,196 $ 7,590,205

Uninsured deposits were $ 2.0 billion a t June 30, 2025 and at December 31, 2024 .

Uninsured deposits were $ 2.1 billion a t September 30, 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 $ 641.1 million and $ 656.9 million of the uninsured deposit balances at June 30, 2025 and at December 31, 2024, respectively .

Peoples pledges investment securities against certain governmental deposit accounts, which covered $ 660.0 million and $ 656.9 million of the uninsured deposit balances at September 30, 2025 and at December 31, 2024, respectively .

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

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

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

3 months or less $ 190,092 $ 180,405

5 unchanged sentences

(Dollars in thousands) Retail Brokered Total

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

Remaining three months ending December 31, 2025 $ 799,757 $ 217,307 $ 1,017,064

Year ending December 31, 2026 1,169,599 42,806 1,212,405

4 unchanged sentences

Total CDs $ 2,008,619 $ 416,851 $ 2,425,470

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.

At September 30, 2025, Peoples had five effective interest rate swaps, with an aggregate notional value of $ 45.0 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 six months ended June 30, 2025:

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

Common Shares Treasury

4 unchanged sentences

Grant of restricted common shares — ( 191,635 )

Grant of unrestricted common shares — ( 2,700 )

Purchase of treasury stock — 9,633

4 unchanged sentences

Common shares issued under employee stock purchase plan

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

Shares at September 30, 2025 36,822,901 1,205,765

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 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.

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

During the third quarter of 2025, there were no purchases under the share repurchase program.

Peoples repurchased 17,166 common shares totaling $ 0.5 million during the first nine months of 2025, which occurred during the second quarter of 2025.

Peoples repurchased 100,905 common shares totaling $ 3.0 million during the first nine months of 2024, which occurred during 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 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:

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

On October 20, 2025, Peoples' Board of Directors declared a quarterly cash dividend of $ 0.41 per common share, payable on November 18, 2025, to shareholders of record on November 4, 2025.

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

First quarter $ 0.40 $ 0.39

1 unchanged sentence

Third quarter 0.41 0.40

Fourth quarter 0.41 0.40

Total dividends declared $ 1.63 $ 1.59

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:

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

4 unchanged sentences

31,783 ( 917 ) 30,866

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

Balance, September 30, 2025 $ ( 78,066 ) $ 527 $ ( 77,539 )

Note 8 Employee Benefit Plans

2 unchanged sentences

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

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.

Matching contributions made by Peoples totaled $ 4.7 million during the nine months ended September 30, 2025 and $ 4.5 million during the nine months ended September 30, 2024.

Note 9 Earnings Per Common Share

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

Three Months Ended Six Months Ended

June 30, June 30,

Three Months Ended Nine Months Ended

September 30, September 30,

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

28 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 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").

At September 30, 2025, Peoples had entered into five interest rate swap contracts with an aggregate notional value of $ 45.0 million.

Peoples will pay a fixed rate of interest

for up to three 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 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.

At both September 30, 2025 and December 31, 2024, the interest rate swaps were designated as cash flow hedges of $ 45.0 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 (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.

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 of the swaps to ensure effectiveness of the cash flow hedge.

For the nine months ended September 30, 2025, and 2024, Peoples recorded reclassifications of losses to earnings of $ 1.0 million and $ 2.4 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) June 30,

(Dollars in thousands) September 30,

2025 December 31,

5 unchanged sentences

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,

Three Months Ended Nine Months Ended

September 30, September 30,

(Dollars in thousands) 2025 2024 2025 2024

1 unchanged sentence

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,

9 unchanged sentences

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 six months ended June 30, 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 nine months ended September 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:

September 30,

2025 December 31,

14 unchanged sentences

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

At June 30, 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.

At September 30, 2025, Peoples Bank had $ 4.2 million of cash pledged, while counterparties had $ 2.7 million of cash pledged.

Peoples Bank had no cash pledged and counterparties had $ 12.3 million of cash pledged at December 31, 2024.

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

Note 11 Stock-Based Compensation

10 unchanged sentences

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

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;

In the first nine 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 six months ended June 30, 2025:

The following table summarizes the changes to Peoples’ outstanding restricted common shares for the nine months ended September 30, 2025:

Time-Based Vesting Performance-Based Vesting

4 unchanged sentences

Forfeited ( 12,908 ) 27.74 ( 38,763 ) 29.80

Outstanding at June 30, 2025

Outstanding at September 30, 2025

116,223 $ 28.46 564,740 $ 30.08

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.

The intrinsic value for restricted common shares released was $ 6.0 million for the nine months ended September 30, 2025, compared to $ 2.6 million for the nine months ended September 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 Six Months Ended

June 30, June 30,

Three Months Ended Nine Months Ended

September 30, September 30,

(Dollars in thousands) 2025 2024 2025 2024

8 unchanged sentences

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

Total unrecognized stock-based compensation expense related to unvested restricted common share awards was $ 7.6 million at June 30, 2025, 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 $ 6.8 million at September 30, 2025, which will be recognized over a weighted-average period of 1.9 years.

Note 12 Revenue

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

Three Months Ended Six Months Ended

June 30, June 30,

Three Months Ended Nine Months Ended

September 30, September 30,

(Dollars in thousands) 2025 2024 2025 2024

6 unchanged sentences

Electronic banking income:

Interchange income (a) 5,111 5,309 9,956 10,229

Interchange income (b) 5,392 4,635 15,348 14,864

Promotional and usage income (a) 1,146 1,724 3,347 4,011

11 unchanged sentences

(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 payment 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 to e-banking income and certain insurance income, but payment has not yet been received.

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

1 unchanged sentence

The contract liabilities are recognized as income over time, during the period in which the performance obligations are fulfilled, which is over the insurance policy period.

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

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

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

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

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

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

Contract Assets Contract Liabilities

5 unchanged sentences

Recognition of income previously deferred — ( 11,282 )

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

Balance, September 30, 2025 $ 974 $ 5,733

Note 13 Leases

3 unchanged sentences

Lessor Arrangements

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.

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

The leases for NSL are generally classified as sales-type leases, as the leases are structured with a dollar buyout, whereby the lessee pays one dollar at maturity of the lease to purchase the equipment.

The leases for Vantage are generally classified as 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.

Vantage also originates operating leases, which are generally structured over a shorter term and do not meet the criteria of a sales-type lease.

These leases do not typically contain residual value guarantees;

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

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.

Equipment leases relate to healthcare, manufacturing, office, restaurant, information technology, general warehousing, storage equipment, vocational trucks and trailers, and other equipment.

Leases structured with a fair market value buyout include an estimated residual value, which is assessed for impairment as part of the allowance for credit losses.

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 Six Months Ended

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

Three Months Ended Nine Months Ended

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

Interest and fees on leases (a) $ 9,520 $ 11,922 $ 30,005 $ 35,970

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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) June 30, 2025 December 31, 2024

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

Lease payments receivable, at amortized cost $ 412,462 $ 448,027

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(Dollars in thousands) Balance

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

Remaining three months ending December 31, 2025 $ 55,164

Year ending December 31, 2026 83,746

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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 June 30, 2025, Peoples did not have any leases that met the criteria for finance leases.

At September 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 Six Months Ended

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

Three Months Ended Nine Months Ended

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

Operating lease expense $ 650 $ 723 $ 1,968 $ 2,191

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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) June 30, 2025 December 31, 2024

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

Other assets $ 9,863 $ 10,419

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Additions for ROU assets obtained during the year $ 1,333 $ 1,660

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.

During both the three months ended September 30, 2025 and 2024, Peoples paid cash of $ 0.6 million for operating leases.

During the nine months ended September 30, 2025 and 2024, Peoples paid cash of $ 1.9 million and $ 2.2 million, respectively, for operating leases.

The following table summarizes the maturity of remaining lease liabilities:

(Dollars in thousands) Balance

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

Remaining three months ending December 31, 2025 $ 625

Year ending December 31, 2026 2,413

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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