PEOPLES BANCORP INC 10-Q

ITEM 1. FINANCIAL STATEMENTS PEOPLES BANCORP INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS September 30, 2025 December 31, 2024 (Dollars in thousands) (Unaudited) Assets Cash and cash equivalents: Cash and balances due from banks $ 120,986 $ 108,721 Interest-bearing deposits in other banks 69,231 108,943 Total cash and cash equivalents 190,217 217,664 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 $ 872,725 at September 30, 2025 and $ 692,499 at December 31, 2024) (a) 931,824 774,800 Other investments 63,991 60,132 Total investment securities (a) 1,972,721 1,918,487 Loans and leases, net of deferred fees and costs (b) 6,728,728 6,358,003 Allowance for credit losses ( 74,864 ) ( 63,348 ) Net loans and leases (c) 6,653,864 6,294,655 Loans held for sale 3,287 2,348 Bank premises and equipment, net of accumulated depreciation 103,581 103,669 Bank owned life insurance 147,097 143,710 Goodwill 363,199 363,199 Other intangible assets 32,336 39,223 Other assets 157,642 171,292 Total assets $ 9,623,944 $ 9,254,247 Liabilities Deposits: Non-interest-bearing $ 1,536,094 $ 1,507,661 Interest-bearing 6,096,102 6,082,544 Total deposits 7,632,196 7,590,205 Short-term borrowings 483,590 193,474 Long-term borrowings 227,282 238,073 Accrued expenses and other liabilities 98,100 120,905 Total liabilities $ 8,441,168 $ 8,142,657 Stockholders’ equity 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 Retained earnings 421,072 388,109 Accumulated other comprehensive loss, net of deferred income taxes ( 77,539 ) ( 110,385 ) 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 ) Total stockholders’ equity $ 1,182,776 $ 1,111,590 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 September 30, 2025 and December 31, 2024. (b) Also referred to throughout this Quarterly Report on Form 10-Q as "total loans" or "loans held for investment." (c) Also referred to throughout this Quarterly Report on Form 10-Q as "net loans." See Notes to the Unaudited Condensed Consolidated Financial Statements 3 Table of Contents PEOPLES BANCORP INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) Three Months Ended Nine Months Ended September 30, September 30, (Dollars in thousands, except per share data) 2025 2024 2025 2024 Interest income: Interest and fees on loans and leases $ 113,157 $ 116,547 $ 329,275 $ 339,729 Interest and dividends on taxable investment securities 17,932 15,132 48,897 43,892 Interest on tax-exempt investment securities 937 988 2,865 2,985 Other interest income 782 953 2,720 5,377 Total interest income 132,808 133,620 383,757 391,983 Interest expense: Interest on deposits 33,890 37,249 102,930 104,968 Interest on short-term borrowings 4,044 4,051 5,940 14,457 Interest on long-term borrowings 3,525 3,408 10,706 10,393 Total interest expense 41,459 44,708 119,576 129,818 Net interest income 91,349 88,912 264,181 262,165 Provision for credit losses 7,280 6,735 34,112 18,520 Net interest income after provision for credit losses 84,069 82,177 230,069 243,645 Non-interest income: Electronic banking income 6,538 6,359 18,695 18,875 Trust and investment income 5,414 4,882 15,756 14,480 Insurance income 4,469 4,271 15,072 14,878 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 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 Total non-interest income 23,827 24,794 77,806 74,277 Non-interest expense: Salaries and employee benefit costs 38,698 37,085 117,412 112,542 Data processing and software expense 7,356 6,111 21,717 18,623 Net occupancy and equipment expense 5,896 5,905 17,198 18,330 Professional fees 2,798 2,896 9,495 8,798 Amortization of other intangible assets 2,211 2,786 6,635 8,361 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 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 Other non-interest expense 3,689 2,537 12,538 12,140 Total non-interest expense 69,894 66,090 211,043 203,313 Income before income taxes 38,002 40,881 96,832 114,609 Income tax expense 8,526 9,197 21,808 24,334 Net income $ 29,476 $ 31,684 $ 75,024 $ 90,275 Earnings per common share - basic $ 0.83 $ 0.90 $ 2.13 $ 2.57 Earnings per common share - diluted $ 0.83 $ 0.89 $ 2.10 $ 2.55 Weighted-average number of common shares outstanding - basic 35,003,054 34,793,704 34,957,341 34,766,281 Weighted-average number of common shares outstanding - diluted 35,398,809 35,199,383 35,327,816 35,106,712 Cash dividends declared $ 14,655 $ 14,174 $ 43,498 $ 42,116 Cash dividends declared per common share $ 0.41 $ 0.40 $ 1.22 $ 1.19 See Notes to the Unaudited Condensed Consolidated Financial Statements 4 Table of Contents PEOPLES BANCORP INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) 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: Available-for-sale investment securities: 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 12,881 29,000 33,763 20,539 Cash flow hedges: 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 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 See Notes to the Unaudited Condensed Consolidated Financial Statements 5 Table of Contents PEOPLES BANCORP INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (Unaudited) Accumulated Other Comprehensive Loss Total Stockholders' Equity Common Shares Retained Earnings Treasury Stock (Dollars in thousands) Balance, June 30, 2025 $ 868,493 $ 406,252 $ ( 90,272 ) $ ( 31,123 ) $ 1,153,350 Net income — 29,476 — — 29,476 Other comprehensive income, net of tax — — 12,733 — 12,733 Cash dividends declared — ( 14,655 ) — — ( 14,655 ) Reissuance of treasury stock for common share awards ( 222 ) — — 222 — Repurchase of treasury stock in connection with employee incentive program and compensation plan for Boards of Directors — — — ( 208 ) ( 208 ) Common shares issued under dividend reinvestment plan 554 — — — 554 Common shares issued under compensation plan for Boards of Directors 20 — — 111 131 Common shares issued under employee stock purchase plan 36 — — 197 233 Stock-based compensation 1,163 — — — 1,163 Other — ( 1 ) — — ( 1 ) Balance, September 30, 2025 $ 870,044 $ 421,072 $ ( 77,539 ) $ ( 30,801 ) $ 1,182,776 6 Table of Contents 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 Net income — 75,024 — — 75,024 Other comprehensive income, net of tax — — 32,846 — 32,846 Cash dividends declared — ( 43,498 ) — — ( 43,498 ) Reissuance of treasury stock for common share awards ( 3,621 ) — — 3,621 — 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 — — — ( 2,331 ) ( 2,331 ) Common shares repurchased under share repurchase program — — — ( 455 ) ( 455 ) Common shares issued under dividend reinvestment plan 1,591 — — — 1,591 Common shares issued under compensation plan for Boards of Directors 59 — — 319 378 Common shares issued under employee stock purchase plan 120 — — 654 774 Stock-based compensation 5,051 — — — 5,051 Other — 1,437 — — 1,437 Balance, September 30, 2025 $ 870,044 $ 421,072 $ ( 77,539 ) $ ( 30,801 ) $ 1,182,776 7 Table of Contents Accumulated Other Comprehensive Loss Total Stockholders' Equity Common Shares Retained Earnings Treasury Stock (Dollars in thousands) Balance, June 30, 2024 $ 863,975 $ 357,886 $ ( 110,193 ) $ ( 33,835 ) $ 1,077,833 Net income — 31,684 — — 31,684 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 — Repurchase of treasury stock in connection with employee incentive program and compensation plan for Boards of Directors — — — ( 170 ) ( 170 ) Common shares issued under dividend reinvestment plan 291 — — — 291 Common shares issued under compensation plan for Boards of Directors 19 — — 96 115 Common shares issued under employee stock purchase plan 82 — — 420 502 Stock-based compensation 1,194 — — — 1,194 Balance, September 30, 2024 $ 865,326 $ 375,396 $ ( 82,496 ) $ ( 33,254 ) $ 1,124,972 8 Table of Contents Accumulated Other Comprehensive Loss Total Stockholders' Equity Common Shares Retained Earnings Treasury Stock (Dollars in thousands) Balance, December 31, 2023 $ 865,227 $ 327,237 $ ( 101,590 ) $ ( 37,340 ) $ 1,053,534 Net income — 90,275 — — 90,275 Other comprehensive income, net of tax — — 19,094 — 19,094 Cash dividends declared — ( 42,116 ) — — ( 42,116 ) Reissuance of treasury stock for common share awards ( 6,833 ) — — 6,833 — 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 — — — ( 1,221 ) ( 1,221 ) Common shares repurchased under share repurchase program — — — ( 3,000 ) ( 3,000 ) Common shares issued under dividend reinvestment plan 1,165 — — — 1,165 Common shares issued under compensation plan for Boards of Directors 61 — — 315 376 Common shares issued under employee stock purchase plan 176 — — 817 993 Stock-based compensation 5,530 — — — 5,530 Balance, September 30, 2024 $ 865,326 $ 375,396 $ ( 82,496 ) $ ( 33,254 ) $ 1,124,972 See Notes to the Unaudited Condensed Consolidated Financial Statements 9 Table of Contents PEOPLES BANCORP INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) Nine Months Ended September 30, (Dollars in thousands) 2025 2024 Net cash provided by operating activities $ 99,402 $ 103,230 Investing activities: Available-for-sale investment securities: Purchases ( 27,934 ) ( 203,702 ) Proceeds from sales 72,831 — Proceeds from principal payments, calls and prepayments 102,487 196,067 Held-to-maturity investment securities: Purchases ( 290,236 ) ( 110,406 ) Proceeds from principal payments 134,114 100,528 Other investments: Purchases ( 35,076 ) ( 18,824 ) Proceeds from sales 31,756 27,071 Net increase in loans held for investment ( 384,463 ) ( 108,058 ) Net expenditures for premises and equipment ( 5,912 ) ( 6,625 ) 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 Investment in limited partnership and tax credit funds — ( 2,919 ) Other ( 1,150 ) — Net cash used in investing activities ( 403,396 ) ( 126,617 ) Financing activities: Net increase (decrease) in non-interest-bearing deposits 28,433 ( 114,208 ) Net increase in interest-bearing deposits 13,056 445,012 Net increase (decrease) in short-term borrowings 290,116 ( 425,176 ) Proceeds from long-term borrowings 8,328 45,872 Payments on long-term borrowings ( 19,879 ) ( 26,217 ) Cash dividends paid ( 43,498 ) ( 42,116 ) Purchase of treasury stock under share repurchase program ( 455 ) ( 3,000 ) Purchase of treasury stock in connection with employee incentive program and compensation plan for Boards of Directors to be held as treasury stock ( 2,331 ) ( 1,221 ) Proceeds from issuance of common shares 1,481 1,130 Other 1,296 296 Net cash provided by (used in) financing activities 276,547 ( 119,628 ) Net decrease in cash and cash equivalents ( 27,447 ) ( 143,015 ) Cash and cash equivalents at beginning of period 217,664 426,722 Cash and cash equivalents at end of period $ 190,217 $ 283,707 Supplemental cash flow information: Interest paid $ 117,759 $ 125,979 Income taxes paid 17,743 20,383 Supplemental noncash disclosures: Transfers from total loans to other real estate owned — 235 Noncash recognition of new leases 1,333 1,130 See Notes to the Unaudited Condensed Consolidated Financial Statements 10 Table of Contents PEOPLES BANCORP INC. AND SUBSIDIARIES NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS Note 1 Summary of Significant Accounting Policies Basis of Presentation: The accompanying Unaudited Condensed Consolidated Financial Statements of Peoples Bancorp Inc. and its subsidiaries ("Peoples" refers to Peoples Bancorp Inc. and its consolidated subsidiaries collectively, except where the context indicates the reference relates solely to Peoples Bancorp Inc.) have been prepared in accordance with accounting principles generally accepted in the United States ("US GAAP") for interim financial information and the instructions for Form 10-Q and Article 10 of Regulation S-X. 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 September 30, 2025 (this "Form 10-Q"). 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. 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, financing, or investing 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. The Consolidated Balance Sheet at December 31, 2024, contained herein, has been derived from the audited Consolidated Balance Sheet included in Peoples’ 2024 Form 10-K. The preparation of the condensed consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Results of operations for interim periods are not necessarily indicative of the results to be expected for the full year, due in part to seasonal variations and unusual or infrequently occurring items. Operating Segments: As a community banking entity, Peoples offers its customers a full range of products including a complete line of banking, leasing, insurance, investment and trust solutions. Peoples’ business activities are currently confined to a single reportable operating segment, which is community banking. Peoples’ single operating segment was determined based on the similar economic characteristics shared by the components of community banking. Peoples’ chief operating decision maker (“CODM”) is composed of its President and Chief Executive Officer, and its Chief Financial Officer. Peoples’ CODM considers all components of consolidated interest income, interest expense, non-interest income, and non-interest expense as presented in Peoples’ Consolidated Statements of Operations for the purposes of assessing performance of Peoples’ single reportable segment and allocating resources within its reportable segment. The CODM does not review segment revenue or expense information at a lower level than what is included in Peoples’ Consolidated Statements of Operations. New Accounting Pronouncements: 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 adopted standards impacting Peoples. 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 Fair value represents the amount expected to be received to sell an asset or paid to transfer a liability in its principal or most advantageous market in an orderly transaction between market participants at the measurement date. In accordance with fair value accounting guidance, Peoples measures, records and reports various types of assets and liabilities at fair value on either a recurring or a non-recurring basis in the Unaudited Condensed Consolidated Financial Statements. Those assets and liabilities are presented below in the sections entitled “Assets and Liabilities Required to be Measured and Reported at Fair Value on a Recurring Basis” and “Assets and Liabilities Required to be Measured and Reported at Fair Value on a Non-Recurring Basis.” Depending on the nature of the asset or the liability, Peoples uses various valuation methodologies and assumptions to estimate fair value. The measurement of fair value under US GAAP uses a hierarchy, which is described in "Note 1 Summary of Significant Accounting Policies" of the Notes to the Consolidated Financial Statements included in Peoples' 2024 Form 10-K. 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. Those transfers are recognized on the date of the event that prompted the transfer. There were no transfers of assets or 11 Table of Contents 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 The following table provides the fair value for assets and liabilities required to be measured and reported at fair value on a recurring basis on the Unaudited Consolidated Balance Sheets by level in the fair value hierarchy. Recurring Fair Value Measurements at Reporting Date September 30, 2025 December 31, 2024 (Dollars in thousands) Level 1 Level 2 Level 1 Level 2 Assets: Available-for-sale investment securities: Obligations of: U.S. Treasury and government agencies $ — $ 17,696 $ 893 $ 14,303 U.S. government sponsored agencies — 164,132 — 209,083 States and political subdivisions — 186,822 — 196,301 Residential mortgage-backed securities — 561,517 — 601,802 Commercial mortgage-backed securities — 42,510 — 55,065 Bank-issued trust preferred securities — 4,229 — 6,108 Total available-for-sale securities $ — $ 976,906 $ 893 $ 1,082,662 Equity investment securities (a) 168 246 197 244 Nonqualified deferred compensation (a) (b) 6,250 — 4,898 — Derivative assets (c) — 10,621 — 18,743 Liabilities: Derivative liabilities (d) $ — $ 10,007 $ — $ 17,046 (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. (b) Investments in the nonqualified deferred compensation plan consist of mutual funds. (c) Included in " Other assets " on the Unaudited Consolidated Balance Sheets. For additional information, see "Note 10 Derivative Financial Instruments" of the Notes to the Unaudited Condensed Consolidated Financial Statements. (d) Included in " Accrued expenses and other liabilities " on the Unaudited Consolidated Balance Sheets. For additional information, see "Note 10 Derivative Financial Instruments" of the Notes to the Unaudited Condensed Consolidated Financial Statements. Available-for-Sale Investment Securities: The fair values used by Peoples are obtained from an independent pricing service and represent either quoted market prices for the identical securities (Level 1) or fair values determined by pricing models using a market approach that considers observable market data, such as interest rate volatility, secured overnight funding rate ("SOFR") (or other relevant) yield curves, credit spreads, and prices from market makers and live trading systems (Level 2). Management reviews the valuation methodology and quality controls utilized by the pricing services or broker 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. Equity Investment Securities: The fair values of Peoples' equity investment securities are obtained from q uoted prices in active exchange markets for identical assets or liabilities (Level 1) or quoted prices in less active markets (Level 2). Nonqualified deferred compensation: The underlying assets relating to the nonqualified deferred compensation plan are included in a trust and primarily consist of cash and exchange traded mutual funds, which values are based on market prices (Level 1). Derivative Assets and Derivative Liabilities : 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). 12 Table of Contents Assets and Liabilities Required to be Measured and Reported at Fair Value on a Non-Recurring Basis The following table provides the fair value for each class of assets and liabilities required to be measured and reported at fair value on a non-recurring basis on the Unaudited Consolidated Balance Sheets by level in the fair value hierarchy at September 30, 2025 and December 31, 2024. Non-Recurring Fair Value Measurements at Reporting Date September 30, 2025 December 31, 2024 (Dollars in thousands) Level 2 Level 3 Level 2 Level 3 Assets: Collateral dependent loans $ — $ 5,232 $ — $ 4,375 Loans held for sale (a) 982 — 1,499 — Other real estate owned — — — 5,891 (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: Loans for which repayment is dependent upon the operation or sale of collateral, as the borrower is experiencing financial difficulty, are considered collateral dependent. Peoples utilizes outside third-party appraisal services to value the underlying collateral, which Peoples then uses to report the loans at their fair value (Level 3). Loans Held for Sale: Loans originated and intended to be sold in the secondary market, generally one-to-four family residential loans, are carried, in aggregate, at the lower of cost or estimated fair value. Peoples uses a valuation model using quoted market prices of similar instruments in arriving at the fair value (Level 2). Other Real Estate Owned ("OREO"): 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 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 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). 13 Table of Contents Financial Instruments Not Required to be Measured or Reported at Fair Value The following table provides the carrying amount for each class of assets and liabilities and the fair value for certain financial instruments that are not required to be measured or reported at fair value on the Unaudited Consolidated Balance Sheets. Fair Value Measurements of Other Financial Instruments (Dollars in thousands) Fair Value Hierarchy Level September 30, 2025 December 31, 2024 Carrying Amount Fair Value Carrying Amount Fair Value Assets: Cash and cash equivalents 1 $ 190,217 190,217 $ 217,664 $ 217,664 Held-to-maturity investment securities: Obligations of: U.S. government sponsored agencies 2 255,888 248,476 233,302 223,294 States and political subdivisions (a) 2 142,106 115,448 142,691 110,848 Residential mortgage-backed securities 2 438,101 425,908 300,290 276,278 Commercial mortgage-backed securities 2 95,966 82,893 98,754 82,079 Total held-to-maturity securities 932,061 872,725 775,037 692,499 Other investments: Other investments at cost: Federal Home Loan Bank ("FHLB") stock 3 26,013 26,013 24,606 24,606 Federal Reserve Bank ("FRB") stock 3 27,114 27,114 27,114 27,114 Other investments (b) 3 4,200 4,200 3,073 3,073 Total other investments at cost 57,327 57,327 54,793 54,793 Loans and leases, net of deferred fees and costs (c) 3 6,728,728 6,693,002 6,358,003 6,240,751 Bank owned life insurance 2 147,097 147,097 143,710 143,710 Liabilities: Deposits 2 $ 7,632,196 $ 6,999,350 $ 7,590,205 $ 6,713,360 Short-term borrowings 2 483,590 483,586 193,474 192,964 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 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 $ 74.9 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. These financial instruments include cash and cash equivalents and overnight borrowings. Peoples used the following methods and assumptions in estimating the fair value of the following financial instruments: Cash and Cash Equivalents: Cash and cash equivalents include cash on hand, balances due from other banks, interest-bearing deposits in other banks, federal funds sold and other short-term investments with original maturities of 90 days or less. The carrying amount for cash and cash equivalents balances are a reasonable estimate of fair value (Level 1). Held-to-Maturity Investment Securities: 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). 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 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). 14 Table of Contents Loans and Leases, Net of Deferred Fees and Costs: The fair value of portfolio loans and leases assumes sale of the underlying notes to a third-party financial investor. Accordingly, this value is not necessarily the value to Peoples if the notes were held to maturity. Peoples considers interest rate, credit and market factors in estimating the fair value of loans and leases (Level 3). Fair values for loans and leases are estimated using a discounted cash flow methodology. The discount rates take into account interest rates currently being offered to customers for loans and leases with similar terms, the credit risk associated with the loans and leases and other market factors, including liquidity. Bank Owned Life Insurance: 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. Deposits: The fair value of fixed-maturity certificates of deposit ("CDs") is estimated using a discounted cash flow calculation based on current rates offered for deposits of similar remaining maturities. Demand and other non-fixed-maturity deposits are estimated using a discounted cash flow calculation based on maturity, attrition and re-pricing assumptions (Level 2). Short-term Borrowings: The fair value of short-term borrowings is estimated using a discounted cash flow analysis based on rates currently available to Peoples for borrowings with similar terms (Level 2). Long-term Borrowings: The fair value of long-term borrowings is estimated using a discounted cash flow analysis based on rates currently available to Peoples for borrowings with similar terms (Level 2). Certain financial assets and financial liabilities that are not required to be measured or reported at fair value can be subject to fair value adjustments in certain circumstances (for example, when there is evidence of impairment). These financial assets and financial liabilities include the following: customer relationships, the deposit base, and other information required to compute Peoples’ aggregate fair value, which are not included in the above information. Accordingly, the fair values described above are not intended to represent the aggregate fair value of Peoples. Note 3 Investment Securities Available-for-sale The following table summarizes Peoples' available-for-sale investment securities: (Dollars in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value September 30, 2025 Obligations of: U.S. Treasury and government agencies $ 17,582 $ 158 $ ( 44 ) $ 17,696 U.S. government sponsored agencies 171,182 317 ( 7,367 ) 164,132 States and political subdivisions 208,505 139 ( 21,822 ) 186,822 Residential mortgage-backed securities 627,961 1,692 ( 68,136 ) 561,517 Commercial mortgage-backed securities 48,973 — ( 6,463 ) 42,510 Bank-issued trust preferred securities 4,500 1 ( 272 ) 4,229 Total available-for-sale securities $ 1,078,703 $ 2,307 $ ( 104,104 ) $ 976,906 December 31, 2024 Obligations of: U.S. Treasury and government agencies $ 15,317 $ 87 $ ( 208 ) $ 15,196 U.S. government sponsored agencies 224,167 53 ( 15,137 ) 209,083 States and political subdivisions 225,074 16 ( 28,789 ) 196,301 Residential mortgage-backed securities 693,886 1,391 ( 93,475 ) 601,802 Commercial mortgage-backed securities 64,438 36 ( 9,409 ) 55,065 Bank-issued trust preferred securities 6,500 — ( 392 ) 6,108 Total available-for-sale securities $ 1,229,382 $ 1,583 $ ( 147,410 ) $ 1,083,555 15 Table of Contents 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 Gross gains realized $ 120 $ 347 $ 145 $ 347 Gross losses realized ( 2,700 ) ( 421 ) ( 2,727 ) ( 775 ) Net loss realized $ ( 2,580 ) $ ( 74 ) $ ( 2,582 ) $ ( 428 ) The cost of investment securities sold, and any resulting gain or loss, were based on the specific identification method and recognized as of the trade date. The following table presents a summary of available-for-sale investment securities that have been in a continuous unrealized loss position for the periods identified: Less than 12 Months 12 Months or More Total (Dollars in thousands) Fair Value Unrealized Loss No. of Securities Fair Value Unrealized Loss No. of Securities Fair Value Unrealized Loss September 30, 2025 Obligations of: U.S. Treasury and government agencies $ 10,694 $ 37 6 $ 1,349 $ 7 6 $ 12,043 $ 44 U.S. government sponsored agencies 30,639 371 4 115,692 6,996 27 146,331 7,367 States and political subdivisions 6,993 159 10 165,192 21,663 148 172,185 21,822 Residential mortgage-backed securities 23,837 10 4 489,167 68,126 256 513,004 68,136 Commercial mortgage-backed securities 728 5 2 41,210 6,458 23 41,938 6,463 Bank-issued trust preferred securities — — — 3,728 272 2 3,728 272 Total $ 72,891 $ 582 26 $ 816,338 $ 103,522 462 $ 889,229 $ 104,104 December 31, 2024 Obligations of: U.S. Treasury and government agencies $ 10,003 $ 174 11 $ 2,299 $ 34 10 $ 12,302 $ 208 U.S. government sponsored agencies 130,518 5,816 27 70,982 9,321 13 201,500 15,137 States and political subdivisions 28,400 1,188 55 160,210 27,601 138 188,610 28,789 Residential mortgage-backed securities 85,043 2,300 69 482,609 91,175 256 567,652 93,475 Commercial mortgage-backed securities 2,868 93 5 46,619 9,316 24 49,487 9,409 Bank-issued trust preferred securities 493 7 1 5,614 385 3 6,107 392 Total $ 257,325 $ 9,578 168 $ 768,333 $ 137,832 444 $ 1,025,658 $ 147,410 Management evaluates available-for-sale investment securities for an allowance for credit losses on a quarterly basis. 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. 16 Table of Contents 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. 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. (Dollars in thousands) Within 1 Year 1 to 5 Years 5 to 10 Years Over 10 Years Total Amortized cost Obligations of: U.S. Treasury and government agencies $ 262 $ 845 $ 11,227 $ 5,248 $ 17,582 U.S. government sponsored agencies 1,496 32,513 77,020 60,153 171,182 States and political subdivisions 5,645 42,732 71,598 88,530 208,505 Residential mortgage-backed securities — 1,588 43,604 582,769 627,961 Commercial mortgage-backed securities 635 6,427 23,939 17,972 48,973 Bank-issued trust preferred securities — 1,500 3,000 — 4,500 Total available-for-sale securities $ 8,038 $ 85,605 $ 230,388 $ 754,672 $ 1,078,703 Fair value Obligations of: U.S. Treasury and government agencies $ 261 $ 848 $ 11,330 $ 5,257 $ 17,696 U.S. government sponsored agencies 1,480 29,996 74,278 58,378 164,132 States and political subdivisions 5,611 40,371 63,300 77,540 186,822 Residential mortgage-backed securities — 1,536 41,534 518,447 561,517 Commercial mortgage-backed securities 635 6,049 20,924 14,902 42,510 Bank-issued trust preferred securities — 1,471 2,758 — 4,229 Total available-for-sale securities $ 7,987 $ 80,271 $ 214,124 $ 674,524 $ 976,906 Total weighted-average yield 2.48 % 2.02 % 2.94 % 2.76 % 2.74 % Held-to-maturity The following table summarizes Peoples’ held-to-maturity investment securities: (Dollars in thousands) Amortized Cost Allowance for Credit Losses Gross Unrealized Gains Gross Unrealized Losses Fair Value September 30, 2025 Obligations of: U.S. government sponsored agencies $ 255,888 $ — $ 625 $ ( 8,037 ) $ 248,476 States and political subdivisions 142,106 ( 237 ) 95 ( 26,516 ) 115,448 Residential mortgage-backed securities 438,101 — 4,168 ( 16,361 ) 425,908 Commercial mortgage-backed securities 95,966 — — ( 13,073 ) 82,893 Total held-to-maturity investment securities $ 932,061 $ ( 237 ) $ 4,888 $ ( 63,987 ) $ 872,725 December 31, 2024 Obligations of: U.S. government sponsored agencies $ 233,302 $ — $ 219 $ ( 10,227 ) $ 223,294 States and political subdivisions 142,691 ( 237 ) 110 ( 31,716 ) 110,848 Residential mortgage-backed securities 300,290 — 281 ( 24,293 ) 276,278 Commercial mortgage-backed securities 98,754 — — ( 16,675 ) 82,079 Total held-to-maturity investment securities $ 775,037 $ ( 237 ) $ 610 $ ( 82,911 ) $ 692,499 There were no sales of held-to-maturity investment securities during the periods ended September 30, 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 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 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: 17 Table of Contents Less than 12 Months 12 Months or More Total (Dollars in thousands) Fair Value Unrealized Loss No. of Securities Fair Value Unrealized Loss No. of Securities Fair Value Unrealized Loss September 30, 2025 Obligations of: U.S. government sponsored agencies $ 102,454 $ 1,154 12 $ 78,314 $ 6,883 19 $ 180,768 $ 8,037 States and political subdivisions 924 79 1 111,365 26,437 66 112,289 26,516 Residential mortgage-backed securities 37,817 322 7 152,215 16,039 47 190,032 16,361 Commercial mortgage-backed securities 1,560 12 1 79,332 13,061 32 80,892 13,073 Total $ 142,755 $ 1,567 21 $ 421,226 $ 62,420 164 $ 563,981 $ 63,987 December 31, 2024 Obligations of: U.S. government sponsored agencies $ 150,390 $ 2,464 29 $ 38,901 $ 7,763 11 $ 189,291 $ 10,227 States and political subdivisions 957 44 1 106,716 31,672 66 107,673 31,716 Residential mortgage-backed securities 116,576 2,808 27 130,556 21,485 43 247,132 24,293 Commercial mortgage-backed securities 9,603 1,381 5 70,476 15,294 29 80,079 16,675 Total $ 277,526 $ 6,697 62 $ 346,649 $ 76,214 149 $ 624,175 $ 82,911 The table below presents the amortized cost, fair value and total weighted-average yield of held-to-maturity investment securities by contractual maturity at September 30, 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. (Dollars in thousands) Within 1 Year 1 to 5 Years 5 to 10 Years Over 10 Years Total Amortized cost Obligations of: U.S. government sponsored agencies $ 2,916 $ 5,693 $ 119,659 $ 127,620 $ 255,888 States and political subdivisions 2,799 6,581 27,522 105,204 142,106 Residential mortgage-backed securities 48 — 3,594 434,459 438,101 Commercial mortgage-backed securities 2,000 8,836 39,577 45,553 95,966 Total held-to-maturity investment securities $ 7,763 $ 21,110 $ 190,352 $ 712,836 $ 932,061 Fair value Obligations of: U.S. government sponsored agencies $ 2,881 $ 5,412 $ 118,768 $ 121,415 $ 248,476 States and political subdivisions 2,799 6,375 23,182 83,092 115,448 Residential mortgage-backed securities 48 — 3,247 422,613 425,908 Commercial mortgage-backed securities 2,000 8,257 34,815 37,821 82,893 Total held-to-maturity investment securities $ 7,728 $ 20,044 $ 180,012 $ 664,941 $ 872,725 Total weighted-average yield 1.90 % 1.93 % 3.93 % 4.21 % 4.08 % 18 Table of Contents 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) September 30, 2025 December 31, 2024 FHLB stock $ 26,013 $ 24,606 FRB stock 27,114 27,114 Nonqualified deferred compensation 6,250 4,898 Equity investment securities 3,745 2,645 Other investments 869 869 Total other investments $ 63,991 $ 60,132 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 Peoples has pledged available-for-sale investment securities and held-to-maturity investment securities to secure public and trust department deposits, and repurchase agreements in accordance with federal and state requirements. Peoples has also pledged available-for-sale investment securities to secure additional borrowing capacity at the FHLB and the FRB. The following table summarizes the carrying amount of Peoples' pledged securities: Carrying Amount (Dollars in thousands) September 30, 2025 December 31, 2024 Securing public and trust department deposits, and repurchase agreements: Available-for-sale $ 406,307 $ 505,963 Held-to-maturity 718,780 563,014 Securing additional borrowing capacity at the FHLB and the FRB: Available-for-sale 4,099 3,119 Held-to-maturity 90,298 1,215 Accrued Interest 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 September 30, 2025 and $ 9.9 million at December 31, 2024. Note 4 Loans and Leases Peoples' loan portfolio consists of various types of loans and leases originated primarily as a result of lending opportunities within Peoples' footprint. Peoples also originates insurance premium finance loans nationwide through its Peoples Premium Finance division, and originates leases nationwide through its North Star Leasing ("NSL") division and its Vantage Financial, LLC ("Vantage") subsidiary. 19 Table of Contents The major classifications of loan balances (in each case, net of deferred fees and costs) excluding loans held for sale, were as follows: (Dollars in thousands) September 30, 2025 December 31, 2024 Construction $ 261,048 $ 328,388 Commercial real estate, other 2,369,396 2,156,013 Commercial and industrial 1,489,505 1,347,645 Premium finance 273,297 269,435 Leases 382,753 406,598 Residential real estate 875,773 835,101 Home equity lines of credit 247,383 232,661 Consumer, indirect 710,385 669,857 Consumer, direct 118,206 111,052 Deposit account overdrafts 982 1,253 Total loans, at amortized cost $ 6,728,728 $ 6,358,003 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 $ 23.9 million at September 30, 2025 and $ 23.1 million at December 31, 2024. Nonaccrual and Past Due Loans A loan is considered past due if any required principal and interest payments have not been received as of the date such payments were required to be made under the terms of the loan agreement. A loan may be placed on nonaccrual status regardless of whether or not such loan is considered past due. The amortized cost of loans on nonaccrual status and of loans delinquent for 90 days or more and accruing was as follows: September 30, 2025 December 31, 2024 (Dollars in thousands) Nonaccrual (a) Accruing Loans 90+ Days Past Due Nonaccrual (a) Accruing Loans 90+ Days Past Due Commercial real estate, other $ 3,861 $ — $ 7,136 $ 227 Commercial and industrial 6,258 163 6,809 78 Premium finance — 2,492 — 4,947 Leases 11,338 496 8,850 803 Residential real estate 8,249 1,432 7,329 2,166 Home equity lines of credit 1,336 28 1,498 213 Consumer, indirect 2,563 160 2,374 159 Consumer, direct 284 127 133 44 Total loans, at amortized cost $ 33,889 $ 4,898 $ 34,129 $ 8,637 (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. 20 Table of Contents 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: Loans Past Due Current Loans Total Loans (Dollars in thousands) 30 - 59 days 60 - 89 days 90 + Days Total September 30, 2025 Construction $ — $ — $ — $ — $ 261,048 $ 261,048 Commercial real estate, other 5,423 2,457 2,904 10,784 2,358,612 2,369,396 Commercial and industrial 1,909 495 5,086 7,490 1,482,015 1,489,505 Premium finance 1,880 996 2,492 5,368 267,929 273,297 Leases 2,907 6,733 11,549 21,189 361,564 382,753 Residential real estate 2,616 3,782 4,806 11,204 864,569 875,773 Home equity lines of credit 1,924 473 604 3,001 244,382 247,383 Consumer, indirect 6,429 1,162 1,331 8,922 701,463 710,385 Consumer, direct 534 211 305 1,050 117,156 118,206 Deposit account overdrafts — — — — 982 982 Total loans, at amortized cost $ 23,622 $ 16,309 $ 29,077 $ 69,008 $ 6,659,720 $ 6,728,728 December 31, 2024 Construction $ — $ — $ — $ — $ 328,388 $ 328,388 Commercial real estate, other 1,300 1,585 6,008 8,893 2,147,120 2,156,013 Commercial and industrial 1,651 583 4,551 6,785 1,340,860 1,347,645 Premium finance 3,863 456 4,947 9,266 260,169 269,435 Leases 10,941 5,241 9,575 25,757 380,841 406,598 Residential real estate 11,481 3,038 5,271 19,790 815,311 835,101 Home equity lines of credit 1,473 317 1,093 2,883 229,778 232,661 Consumer, indirect 7,568 1,522 1,326 10,416 659,441 669,857 Consumer, direct 884 113 138 1,135 109,917 111,052 Deposit account overdrafts — — — — 1,253 1,253 Total loans, at amortized cost $ 39,161 $ 12,855 $ 32,909 $ 84,925 $ 6,273,078 $ 6,358,003 Delinquency trends improved slightly, as 99.0 % of Peoples' loan portfolio was considered “current” at September 30, 2025, compared to 98.7 % at December 31, 2024. Pledged Loans Peoples has pledged certain loans secured by one-to-four family and multifamily residential mortgages, home equity lines of credit and commercial real estate loans under a blanket collateral agreement to secure borrowings from the FHLB. Peoples also has pledged eligible commercial and industrial loans to secure borrowings with the FRB. Loans pledged are summarized as follows: (Dollars in thousands) September 30, 2025 December 31, 2024 Loans pledged to FHLB $ 1,262,210 $ 1,218,496 Loans pledged to FRB 479,267 527,989 Credit Quality Indicators As discussed in "Note 1 Summary of Significant Accounting Policies" of the Notes to the Consolidated Financial Statements included in Peoples' 2024 Form 10-K, Peoples categorizes the majority of its loans into risk categories based upon an established risk grading matrix using a scale of 1 to 8. Loan grades are assigned at the time a new loan or lending commitment is extended by Peoples and may be changed at any time when circumstances warrant. Commercial loans to borrowers with an aggregate unpaid principal balance in excess of $ 1.0 million are reviewed at least on an annual basis for possible credit deterioration. Commercial leases, as well as loan relationships whose aggregate credit exposure to Peoples is equal to or less than $ 1.0 million, are reviewed on an event driven basis. Triggers for review include knowledge of adverse events affecting the borrower's business, receipt of financial statements 21 Table of Contents indicating deteriorating credit quality or other similar events. Adversely classified loans are reviewed on a quarterly basis. A description of the general characteristics of the risk grades used by Peoples, follows: “Pass” (grades 1 through 4): Loans in this risk category involve borrowers of acceptable-to-strong credit quality and risk who have the apparent ability to satisfy their loan obligations. Loans in this risk category would possess sufficient mitigating factors, such as adequate collateral or strong guarantors possessing the capacity to repay the loan if required, for any weakness that may exist. “Special Mention” (grade 5): Loans in this risk grade are the equivalent of the regulatory definition of “Other Assets Especially Mentioned.” Loans in this risk category possess some credit deficiency or potential weakness, which requires a high level of management attention. Potential weaknesses include declining trends in operating earnings and cash flows and/or reliance on a secondary source of repayment. If left uncorrected, these potential weaknesses may result in noticeable deterioration of the repayment prospects for the loan or in Peoples' credit position. “Substandard” (grade 6): Loans in this risk grade are inadequately protected by the borrower's current financial condition and payment capability or the collateral pledged, if any. Loans so classified have one or more well-defined weaknesses that jeopardize the orderly repayment of the loans. They are characterized by the distinct possibility that Peoples will sustain some loss if the weaknesses are not corrected. “Doubtful” (grade 7): Loans in this risk grade have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or orderly repayment in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable. Possibility of loss is extremely high, but because of certain important and reasonably specific factors that may work to the advantage and strengthening of the exposure, classification of each of these loans as an estimated loss is deferred until its more exact status may be determined. “Loss” (grade 8): Loans in this risk grade are considered to be non-collectible and of such little value that their continuance as bankable assets is not warranted. This does not mean a loan has absolutely no recovery value, but rather it is neither practical nor desirable to defer writing off the loan, even though partial recovery may be obtained in the future. Charge-offs against the allowance for credit losses are taken during the period in which the loan becomes uncollectible. Consequently, Peoples typically does not maintain a recorded investment in loans within this category. 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", "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 September 30, 2025: 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 Loans Construction Pass $ 49,861 $ 79,937 $ 116,066 $ 991 $ 6,533 $ 5,040 $ — $ 512 $ 258,428 Substandard — — 1,125 1,495 — — — — 2,620 Total 49,861 79,937 117,191 2,486 6,533 5,040 — 512 261,048 Current period gross charge-offs (a) — — — — — — — Commercial real estate, other Pass 250,913 186,063 350,878 385,044 341,179 692,324 38,645 1,844 2,245,046 Special mention 85 8,596 2,606 611 4,852 27,224 133 — 44,107 Substandard — 680 1,362 15,809 27,614 34,214 554 2,423 80,233 Doubtful — — — — — 10 — — 10 Total 250,998 195,339 354,846 401,464 373,645 753,772 39,332 4,267 2,369,396 Current period gross charge-offs (a) — — — 156 — 121 277 Commercial and industrial Pass 266,963 253,929 181,349 103,836 110,948 225,164 236,280 5,636 1,378,469 22 Table of Contents 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 Loans Special mention 901 90 2,986 1,301 3,014 11,794 41,832 15 61,918 Substandard 137 4,419 3,452 11,372 13,226 4,292 11,329 5,268 48,227 Doubtful — — — 850 — 41 — — 891 Total 268,001 258,438 187,787 117,359 127,188 241,291 289,441 10,919 1,489,505 Current period gross charge-offs (a) 50 19 161 540 159 479 1,408 Premium Finance Pass 258,474 14,348 475 — — — — — 273,297 Total 258,474 14,348 475 — — — — — 273,297 Current period gross charge-offs (a) 7 126 106 30 — — 269 Leases Pass 128,431 105,310 83,397 34,169 12,608 3,803 — — 367,718 Special mention 26 754 2,272 658 37 1 — — 3,748 Substandard 293 2,048 2,453 888 373 30 — — 6,085 Doubtful — 1,363 1,959 1,588 292 — — — 5,202 Total 128,750 109,475 90,081 37,303 13,310 3,834 — — 382,753 Current period gross charge-offs (a) 73 2,234 6,319 5,364 1,220 473 15,683 Residential real estate Pass 86,319 69,638 58,908 79,796 120,795 449,404 — — 864,860 Substandard — 550 1,312 211 1,054 7,728 — — 10,855 Loss — — — 4 10 44 — — 58 Total 86,319 70,188 60,220 80,011 121,859 457,176 — — 875,773 Current period gross charge-offs (a) — — 27 8 39 139 213 Home equity lines of credit Pass 39,014 53,024 34,066 35,733 24,843 59,804 22 3,362 246,506 Substandard — — 50 257 16 554 — — 877 Total 39,014 53,024 34,116 35,990 24,859 60,358 22 3,362 247,383 Current period gross charge-offs (a) — — 36 — — 3 39 Consumer, indirect Pass 244,216 183,330 124,490 98,441 32,788 24,003 — — 707,268 Substandard 371 529 702 674 390 350 — — 3,016 Loss 15 34 16 22 11 3 — — 101 Total 244,602 183,893 125,208 99,137 33,189 24,356 — — 710,385 Current period gross charge-offs (a) 582 1,658 1,600 915 278 133 5,166 Consumer, direct Pass 49,443 26,983 17,273 13,754 5,756 4,617 — — 117,826 23 Table of Contents 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 Loans Substandard — 38 196 65 30 36 — — 365 Loss — — 14 — 1 — — — 15 Total 49,443 27,021 17,483 13,819 5,787 4,653 — — 118,206 Current period gross charge-offs (a) 239 119 83 72 18 10 541 Deposit account overdrafts 982 — — — — — — — 982 Current period gross charge-offs (a) 834 — — — — — 834 Total loans, at amortized cost 1,376,444 991,663 987,407 787,569 706,370 1,550,480 328,795 19,060 6,728,728 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 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: 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 Loans Construction Pass $ 69,862 $ 162,605 $ 47,133 $ 30,592 $ 1,845 $ 13,540 $ — $ — $ 325,577 Special mention — — — — — 115 — — 115 Substandard — 1,161 1,535 — — — — — 2,696 Total 69,862 163,766 48,668 30,592 1,845 13,655 — — 328,388 Current period gross charge-offs (a) — — — — — — — Commercial real estate, other Pass 130,971 219,105 366,256 337,905 201,367 751,415 41,122 — 2,048,141 Special mention 271 2,923 11,876 7,197 5,107 10,689 288 — 38,351 Substandard 145 1,073 2,460 18,851 9,234 37,136 612 — 69,511 Doubtful — — — — — 10 — — 10 Total 131,387 223,101 380,592 363,953 215,708 799,250 42,022 — 2,156,013 Current period gross charge-offs (a) — — 376 — — 55 431 Commercial and industrial Pass 311,631 202,929 134,558 148,288 66,102 152,143 229,821 4,779 1,245,472 Special mention 779 9,019 10,886 4,449 12,049 13,537 19,465 — 70,184 Substandard 200 99 4,791 11,429 3,850 4,430 5,045 49 29,844 Doubtful — — 1,987 — — 158 — — 2,145 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 (a) — 14 — 17 105 532 668 Premium finance Pass 265,504 3,837 94 — — — — — 269,435 Total 265,504 3,837 94 — — — — — 269,435 24 Table of Contents 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 Loans Current period gross charge-offs (a) 67 109 33 — — — 209 Leases Pass 175,449 125,664 61,064 24,181 4,661 2,153 — — 393,172 Special mention 791 1,529 1,140 365 5 — — — 3,830 Substandard 351 2,108 1,777 193 8 — — — 4,437 Doubtful 170 2,127 1,859 624 110 269 — — 5,159 Total 176,761 131,428 65,840 25,363 4,784 2,422 — — 406,598 Current period gross charge-offs (a) 1,315 5,623 5,421 2,308 301 138 15,106 Residential real estate Pass 77,130 66,712 85,045 128,359 52,090 414,574 — — 823,910 Substandard 321 1,088 161 980 306 8,087 — — 10,943 Loss — 4 — — — 244 — — 248 Total 77,451 67,804 85,206 129,339 52,396 422,905 — — 835,101 Current period gross charge-offs (a) — — 46 5 — 237 288 Home equity lines of credit Pass 54,724 37,417 37,752 27,430 16,583 57,303 24 731 231,233 Substandard — 138 163 16 34 1,069 — — 1,420 Loss — — — — — 8 — — 8 Total 54,724 37,555 37,915 27,446 16,617 58,380 24 731 232,661 Current period gross charge-offs (a) — — — — — 11 11 Consumer, indirect Pass 239,584 176,115 148,210 56,846 30,231 16,129 — — 667,115 Substandard 269 557 681 618 312 251 — — 2,688 Loss 14 — 16 14 — 10 — — 54 Total 239,867 176,672 148,907 57,478 30,543 16,390 — — 669,857 Current period gross charge-offs (a) 497 2,207 1,880 691 141 763 6,179 Consumer, direct Pass 45,978 25,605 21,544 9,614 4,180 3,884 — — 110,805 Substandard 18 65 46 29 4 73 — — 235 Loss — 4 — — — 8 — — 12 Total 45,996 25,674 21,590 9,643 4,184 3,965 — — 111,052 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 (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 (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. 25 Table of Contents Collateral Dependent Loans Peoples has certain loans for which repayment is dependent upon the operation or sale of collateral, as the borrower is experiencing financial difficulty. The underlying collateral can vary based upon the type of loan. The following provides more detail about the types of collateral that secure collateral dependent loans: • Construction loans are typically secured by owner occupied commercial real estate or non-owner occupied investment real estate. Typically, owner occupied construction loans are secured by office buildings, warehouses, manufacturing facilities, and other commercial and industrial properties that are in process of construction. Non-owner occupied commercial construction loans are generally secured by multi-family complexes, warehouse buildings, industrial buildings, land under development, and other commercial real estate in process of construction. • Commercial real estate loans can be secured by either owner occupied commercial real estate or non-owner occupied investment commercial real estate. Typically, owner occupied commercial real estate loans are secured by office buildings, warehouses, manufacturing facilities, and other commercial and industrial properties occupied by operating companies. Non-owner occupied commercial real estate loans are generally secured by multifamily complexes, retail facilities, office buildings and complexes, warehouses, industrial buildings, land under development, as well as other commercial real estate. • Commercial and industrial loans are generally secured by equipment, inventory, accounts receivable, and other commercial property. • Residential real estate loans are typically secured by first mortgages, and in some cases could be secured by a second mortgage, on residential real estate property. • Home equity lines of credit are generally secured by second mortgages on residential real estate property. • Consumer loans are generally secured by automobiles, motorcycles, recreational vehicles and other personal property. Some consumer loans are unsecured and have no underlying collateral. • Leases are most often secured by commercial equipment and other essential business assets. • Premium finance loans are secured by the unearned portion of the insurance premium being financed. The following table details Peoples' amortized cost of collateral dependent loans: (Dollars in thousands) September 30, 2025 December 31, 2024 Commercial real estate, other $ 687 $ 2,764 Leases 2,333 652 Commercial and industrial 2,212 959 Total collateral dependent loans $ 5,232 $ 4,375 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 As part of Peoples' loss mitigation activities, Peoples may agree to modify the contractual terms of a loan to a borrower experiencing financial difficulty. The most common modifications to the contractual terms of a loan to a borrower experiencing financial difficulty include an extension of the maturity date, a reduction in the interest rate for the remaining life of the loan, a temporary period of interest-only payments, and a reduction in the contractual payment amount for either a short period or the remaining term of the loan. In addition to loan modifications, Peoples also provides other loss mitigation options, such as forbearance and repayment plans, to assist borrowers who experience financial difficulties. In assessing whether or not a borrower is experiencing financial difficulty, Peoples considers information currently available regarding the financial condition of the borrower. This information includes, but is not limited to, whether (1) the borrower is currently in payment default on any of the borrower's debt; (2) a payment default is probable in the foreseeable future without the modification; (3) the borrower has declared or is in the process of declaring bankruptcy; 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 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 nine months ended September 30, 2025 and September 30, 2024, presented by loan classification. 26 Table of Contents (Dollars in thousands) Payment Deferral Term Extension Total Percentage of Total by Loan Category (a)(b)(c) 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 % 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 September 30, 2024 Commercial real estate $ — $ 561 $ 561 0.03 % Commercial and industrial — 9,057 9,057 0.72 % Leases 14 637 651 0.15 % Residential real estate — 17 17 — % Consumer, indirect 14 1 15 — % Total $ 28 $ 10,273 $ 10,301 0.16 % (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. (c) Each with --% is considered not meaningful. (Dollars in thousands) Payment Deferral Term Extension Principal Forgiveness Total Percentage of Total by Loan Category (a)(b)(c) 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 % 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 Nine Months Ended September 30, 2024 Commercial real estate — 1,122 — 1,122 0.05 % Commercial and industrial — 19,148 — 19,148 1.53 % Leases 214 637 — 851 0.20 % Residential real estate — 90 — 90 0.01 % Home equity lines of credit — 64 — 64 0.03 % Consumer, indirect 14 8 — 22 — % Total $ 228 $ 21,069 $ — $ 21,297 0.34 % (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. (c) Each with --% is considered not meaningful. 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. 27 Table of Contents Weighted-Average Term Extension (in months) During the Three Months Ended September 30, 2025 Commercial real estate 6 Commercial and industrial 3 Leases 12 Home equity lines of credit 240 During the Three Months Ended September 30, 2024 Commercial real estate 6 Commercial and industrial 7 Leases 12 Residential real estate 1 Consumer, indirect 13 Weighted-Average Term Extension (in months) During the Nine Months Ended September 30, 2025 Commercial real estate 4 Commercial and industrial 6 Leases 8 Residential real estate 174 Home equity lines of credit 240 During the Nine Months Ended September 30, 2024 Commercial real estate 6 Commercial and industrial 7 Leases 12 Residential real estate 1 Home equity lines of credit 120 Consumer, indirect 3 The following tables display the amortized cost of loans that received a completed modification or payment deferral within the previous 12 months and that had a payment default in the periods presented. For purposes of this disclosure, Peoples defines loans that had a payment default as loans that were 90 days or more past due following a modification. 28 Table of Contents Term Extension (a) For the Three Months Ended September 30, 2025 Commercial and industrial 405 Total loans that subsequently defaulted $ 405 For the Three Months Ended September 30, 2024 Leases $ 26 Total loans that subsequently defaulted $ 26 For the Nine Months Ended September 30, 2025 Commercial and industrial 423 Total loans that subsequently defaulted $ 423 For the Nine Months Ended September 30, 2024 Commercial real estate $ 193 Commercial and industrial 28 Leases 26 Residential real estate 73 Total loans that subsequently defaulted $ 320 (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 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 Commercial real estate $ — $ — $ — $ — $ 3,084 $ 3,084 Commercial and industrial — — 423 423 10,625 11,048 Leases 25 — — 25 49 74 Residential real estate — — — — 188 188 Home equity lines of credit 47 — — 47 92 139 Total loans modified (a) $ 72 $ — $ 423 $ 495 $ 14,038 $ 14,533 (a) Represents the amortized cost basis as of period end. 29 Table of Contents As of September 30, 2024 (Dollars in thousands) 30-59 Days Delinquent 60-89 Days Delinquent 90+ Days Delinquent Total Delinquent Current Total Commercial real estate $ — $ — $ 193 $ 193 $ 2,311 $ 2,504 Commercial and industrial 50 — 28 78 11,363 11,441 Leases — — 26 26 174 200 Residential real estate — — 34 34 63 97 Home equity lines of credit — — — — 120 120 Consumer, indirect — — — — 7 7 Total loans modified (a) $ 50 $ — $ 281 $ 331 $ 14,038 $ 14,369 (a) Represents the amortized cost basis as of period end. Allowance for Credit Losses As discussed in "Note 1 Summary of Significant Accounting Policies" of the Notes to the Consolidated Financial Statements included in Peoples' 2024 Form 10-K, Peoples estimates the allowance for credit losses using relevant available information, from both internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. In management's estimation of expected credit losses, Peoples uses a one-year reasonable and supportable period across all segments. Following the reasonable and supportable period, Peoples reverts the macroeconomic variables to their long run average over a four-quarter reversion period. Changes in the allowance for credit losses for the three and nine months ended September 30, 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 Commercial real estate, other 17,144 1,198 ( 27 ) 1 18,316 Commercial and industrial 17,854 488 ( 472 ) 26 17,896 Premium finance 794 84 ( 105 ) 3 776 Leases 19,633 2,894 ( 4,930 ) 443 18,040 Residential real estate 6,113 266 ( 71 ) 40 6,348 Home equity lines of credit 1,814 93 ( 27 ) — 1,880 Consumer, indirect 7,643 1,408 ( 1,607 ) 418 7,862 Consumer, direct 2,248 400 ( 290 ) 27 2,385 Deposit account overdrafts 91 276 ( 312 ) 54 109 Total $ 74,681 $ 7,012 $ ( 7,841 ) $ 1,012 $ 74,864 (a) Amount does not include the provision for the allowance for credit losses on unfunded commitments. 30 Table of Contents (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 Commercial real estate, other 19,852 ( 2,713 ) — 100 17,239 Commercial and industrial 10,943 907 ( 259 ) 1 11,592 Premium finance 763 ( 19 ) ( 37 ) 4 711 Leases 15,218 5,449 ( 3,753 ) 56 16,970 Residential real estate 5,939 61 — 58 6,058 Home equity lines of credit 1,737 69 ( 2 ) — 1,804 Consumer, indirect 8,654 1,904 ( 1,820 ) 186 8,924 Consumer, direct 2,332 181 ( 162 ) 19 2,370 Deposit account overdrafts 136 456 ( 558 ) 83 117 Total $ 66,247 $ 6,476 $ ( 6,591 ) $ 507 $ 66,639 (a) Amount does not include the provision for the allowance for credit losses on unfunded commitments. (Dollars in thousands) Beginning Balance, December 31, 2024 Provision for (Recovery of) Credit Losses (a) Charge-offs Recoveries Ending Balance, September 30, 2025 Construction $ 878 $ 374 $ — $ — $ 1,252 Commercial real estate, other 16,256 2,332 ( 277 ) 5 18,316 Commercial and industrial 13,283 5,972 ( 1,408 ) 49 17,896 Premium finance 662 371 ( 269 ) 12 776 Leases 12,893 19,881 ( 15,683 ) 949 18,040 Residential real estate 6,491 ( 69 ) ( 213 ) 139 6,348 Home equity lines of credit 1,792 127 ( 39 ) — 1,880 Consumer, indirect 8,576 3,375 ( 5,166 ) 1,077 7,862 Consumer, direct 2,396 469 ( 541 ) 61 2,385 Deposit account overdrafts 121 598 ( 834 ) 224 109 Total $ 63,348 $ 33,430 $ ( 24,430 ) $ 2,516 $ 74,864 (a) Amount does not include the provision for the allowance for credit losses on unfunded commitments. 31 Table of Contents (Dollars in thousands) Beginning Balance, December 31, 2023 Provision for (Recovery of) Credit Losses (a) Charge-offs Recoveries Ending Balance, September 30, 2024 Construction $ 699 $ 155 $ — $ — $ 854 Commercial real estate, other 20,915 ( 3,567 ) ( 212 ) 103 17,239 Commercial and industrial 10,490 1,634 ( 550 ) 18 11,592 Premium finance 484 357 ( 146 ) 16 711 Leases 10,850 13,079 ( 7,400 ) 441 16,970 Residential real estate 5,937 56 ( 144 ) 209 6,058 Home equity lines of credit 1,588 220 ( 11 ) 7 1,804 Consumer, indirect 8,590 4,808 ( 4,848 ) 374 8,924 Consumer, direct 2,343 513 ( 529 ) 43 2,370 Deposit account overdrafts 115 1,010 ( 1,232 ) 224 117 Total $ 62,011 $ 18,265 $ ( 15,072 ) $ 1,435 $ 66,639 (a) Amount does not include the provision for the allowance for credit losses on unfunded commitments. 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. The change in the allowance for unfunded commitments is also reflected in the "Provision for (recovery of) credit losses" line of the Unaudited Consolidated Statements of Operations. Note 5 Goodwill and Other Intangible Assets Goodwill The following table details changes in the recorded amount of goodwill: For the Nine Months Ended For the Year Ended (Dollars in thousands) September 30, 2025 December 31, 2024 Goodwill, beginning of period $ 363,199 $ 362,169 Goodwill recorded from acquisitions — 1,030 Goodwill, end of period $ 363,199 $ 363,199 32 Table of Contents Other Intangible Assets 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 September 30, 2025 Gross intangibles $ 54,186 $ 38,470 $ 2,491 $ 95,147 Accumulated amortization ( 35,001 ) ( 28,816 ) — ( 63,817 ) Total acquisition-related intangibles $ 19,185 $ 9,654 $ 2,491 $ 31,330 Servicing rights 963 Non-compete agreements 43 Total other intangibles $ 32,336 December 31, 2024 Gross intangibles $ 54,186 $ 37,920 $ 2,491 $ 94,597 Intangibles recorded from acquisitions — 550 — 550 Accumulated amortization ( 31,545 ) ( 25,723 ) — ( 57,268 ) Total acquisition-related intangibles $ 22,641 $ 12,747 $ 2,491 $ 37,879 Servicing rights 1,216 Non-compete agreements 128 Total other intangibles $ 39,223 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 three months of 2025 $ 1,152 $ 1,030 $ 27 $ 2,209 2026 3,736 3,036 16 6,788 2027 3,043 2,188 — 5,231 2028 2,608 1,462 — 4,070 2029 2,359 971 — 3,330 Thereafter 6,287 967 — 7,254 Total $ 19,185 $ 9,654 $ 43 $ 28,882 The weighted average amortization period of other intangible assets is 7.8 years. 33 Table of Contents Note 6 Deposits Peoples’ deposit balances were comprised of the following: (Dollars in thousands) September 30, 2025 December 31, 2024 Retail certificates of deposits ("CDs"): $100 or more $ 1,153,707 $ 1,092,261 Less than $100 854,912 829,154 Total Retail CDs 2,008,619 1,921,415 Interest-bearing deposit accounts 1,068,443 1,085,152 Savings accounts 884,230 866,959 Money market deposit accounts 948,177 878,254 Governmental deposit accounts 769,782 775,782 Brokered CDs 416,851 554,982 Total interest-bearing deposits 6,096,102 6,082,544 Non-interest-bearing deposits 1,536,094 1,507,661 Total deposits $ 7,632,196 $ 7,590,205 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 $ 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) September 30, 2025 December 31, 2024 3 months or less $ 190,092 $ 180,405 Over 3 to 6 months 119,529 127,329 Over 6 to 12 months 118,784 91,197 Over 12 months 23,869 18,044 Total $ 452,274 $ 416,975 The contractual maturities of CDs for each of the next five years, including the remainder of 2025, and thereafter are as follows: (Dollars in thousands) Retail Brokered Total 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 Year ending December 31, 2027 23,598 87,121 110,719 Year ending December 31, 2028 7,367 23,784 31,151 Year ending December 31, 2029 5,168 45,833 51,001 Thereafter 3,130 — 3,130 Total CDs $ 2,008,619 $ 416,851 $ 2,425,470 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. Additional information regarding Peoples' interest rate swaps can be found in "Note 1 0 Derivative Financial Instruments." Note 7 Stockholders’ Equity The following table details the progression in Peoples’ common shares and treasury stock during the nine months ended September 30, 2025: Common Shares Treasury Stock Shares at December 31, 2024 36,782,601 1,311,175 Changes related to stock-based compensation awards: Release of restricted common shares — 63,246 Cancellation of restricted common shares — 50,774 Grant of restricted common shares — ( 191,635 ) Grant of unrestricted common shares — ( 2,700 ) Purchase of treasury stock — 9,633 Disbursed out of treasury stock — ( 13,564 ) Common shares repurchased under share repurchase program — 17,166 Common shares issued under dividend reinvestment plan 40,300 — Common shares issued under compensation plan for Boards of Directors — ( 12,550 ) Common shares issued under employee stock purchase plan — ( 25,780 ) 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 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 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: 2025 2024 First quarter $ 0.40 $ 0.39 Second quarter 0.41 0.40 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 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 Balance, December 31, 2024 $ ( 111,829 ) $ 1,444 $ ( 110,385 ) Reclassification adjustments to net income: Realized gain on securities, net of tax 1,980 — 1,980 Other comprehensive income (loss), net of reclassifications and tax 31,783 ( 917 ) 30,866 Balance, September 30, 2025 $ ( 78,066 ) $ 527 $ ( 77,539 ) 34 Table of Contents Note 8 Employee Benefit Plans Peoples maintains a retirement savings plan, or 401(k) plan, which covers substantially all employees. The plan provides participants with the opportunity to save for retirement on a tax-deferred basis or through Roth contributions. Since January 1, 2021, Peoples matches 100 % of participants’ contributions up to 6 % of the participants’ compensation. Matching contributions made by Peoples totaled $ 4.7 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 Nine Months Ended September 30, September 30, (Dollars in thousands, except per common share data) 2025 2024 2025 2024 Net income available to common shareholders $ 29,476 $ 31,684 $ 75,024 $ 90,275 Less: Dividends paid on unvested common shares 208 216 628 576 Less: Undistributed income allocated to unvested common shares 46 63 100 183 Net earnings allocated to common shareholders $ 29,222 $ 31,405 $ 74,296 $ 89,516 Weighted-average common shares outstanding 35,003,054 34,793,704 34,957,341 34,766,281 Effect of potentially dilutive common shares 395,755 405,679 370,475 340,431 Total weighted-average diluted common shares outstanding 35,398,809 35,199,383 35,327,816 35,106,712 Earnings per common share: Basic $ 0.83 $ 0.90 $ 2.13 $ 2.57 Diluted $ 0.83 $ 0.89 $ 2.10 $ 2.55 Anti-dilutive common shares excluded from calculation: Restricted common shares 17,634 5,393 17,634 5,393 Note 10 Derivative Financial Instruments Peoples utilizes interest rate swap agreements as part of its asset/liability management strategy to help manage its interest rate risk position. The notional amount of the interest rate swaps does not represent amounts exchanged by the parties. The amount exchanged is determined by reference to the notional amount and the other terms of the individual interest rate swap agreements. Derivative Financial Instruments and Hedging Activities - Risk Management Objective of Using Derivative Financial Instruments Peoples is exposed to certain risks arising from both its business operations and economic conditions. Peoples principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. Peoples manages economic risks, including interest rate, liquidity and credit risk, primarily by managing the amount, sources and duration of its assets and liabilities. Peoples also manages interest rate risk through the use of derivative financial instruments. Specifically, Peoples enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known or expected cash amounts, the values of which are determined by interest rates. Peoples’ derivative financial instruments are used to manage differences in the amount, timing and duration of Peoples' known or expected cash receipts and its known or expected cash payments principally related to certain variable rate borrowings. Peoples also has interest rate derivative financial instruments that result from a service provided to certain qualifying customers and, therefore, are not used to manage interest rate risk in Peoples' assets or liabilities. Peoples manages a matched book with respect to customer-related derivative financial instruments in order to minimize its net risk exposure resulting from such transactions. Cash Flow Hedges of Interest Rate Risk Peoples' objectives in using interest rate derivative financial instruments are to add stability to interest income and expense, and to manage its exposure to interest rate movements. To accomplish these objectives, Peoples has entered into interest rate swaps as part of its interest rate risk management strategy. These interest rate swaps are designated as cash flow hedges and involve the receipt of variable rate amounts from a counterparty in exchange for Peoples making fixed payments. At September 30, 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 35 Table of Contents 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 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 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) September 30, 2025 December 31, 2024 Notional amount $ 45,000 $ 75,000 Weighted average pay rates 2.52 % 2.45 % Weighted average receive rates 3.83 % 4.49 % Weighted average maturity 1.6 years 1.5 years Pre-tax changes in fair value included in AOCI $ 735 $ 1,885 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 Nine Months Ended September 30, September 30, (Dollars in thousands) 2025 2024 2025 2024 Amount of losses recorded in AOCI, pre-tax $ 194 $ 1,698 $ 1,196 $ 1,885 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, 2024 (Dollars in thousands) Notional Amount Fair Value Notional Amount Fair Value Included in "Other assets": Interest rate swaps related to debt $ 45,000 $ 675 $ 75,000 $ 1,784 Non-Designated Hedges Peoples Bank maintains an interest rate protection program for commercial loan customers, which was established in 2010. Under this program, Peoples Bank originates variable rate loans with interest rate swaps, where the customer enters into an interest rate swap with Peoples Bank on terms that match the terms of the loan. By entering into the interest rate swap with the customer, Peoples Bank effectively provides the customer with a fixed rate loan while creating a variable rate asset for Peoples Bank. Peoples Bank offsets its exposure in the interest rate swap by entering into an offsetting interest rate swap with an unaffiliated institution. These interest rate swaps do not qualify as designated hedges; therefore, each interest rate swap is accounted for as a standalone derivative financial instrument. These interest rate swaps did not have a material impact on Peoples' results of operations or financial condition at or for the three and nine months ended September 30, 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: 36 Table of Contents September 30, 2025 December 31, 2024 (Dollars in thousands) Notional Amount Fair Value Notional Amount Fair Value Included in "Other assets": Interest rate swaps related to commercial loans $ 532,777 $ 15,258 $ 453,367 $ 18,742 Netting Adjustments (a) ( 5,312 ) ( 1,783 ) Net Derivative Assets on the Balance Sheet $ 9,946 $ 16,959 Included in "Accrued expenses and other liabilities": Interest rate swaps related to commercial loans $ 532,777 $ 12,519 $ 453,367 $ 17,100 Netting Adjustments (a) ( 2,512 ) ( 54 ) Net Derivatives Liabilities on the Balance Sheet $ 10,007 $ 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 Peoples Bank pledges or receives collateral for all interest rate swaps. When the fair value of Peoples Bank interest rate swaps is in a net liability position, Peoples Bank must pledge collateral, and, when the fair value of Peoples Bank interest rate swaps is in a net asset position, the respective counterparties must pledge collateral. At 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 Under the Peoples Bancorp Inc. Fourth Amended and Restated 2006 Equity Plan (the "2006 Equity Plan"), Peoples may grant, among other awards, nonqualified stock options, incentive stock options, restricted common share awards, stock appreciation rights, performance units and unrestricted common share awards to employees and non-employee directors. The total number of common shares available under the 2006 Equity Plan is 1,493,297 . The maximum number of common shares that can be issued for incentive stock options is 750,000 . Since February 2009, Peoples has granted restricted common shares to employees, and periodically to non-employee directors, subject to the terms and conditions prescribed by the 2006 Equity Plan. In general, common shares issued in connection with stock-based awards are issued from treasury shares to the extent available. If no treasury shares are available, common shares are issued from authorized but unissued common shares. Restricted Common Shares Under the 2006 Equity Plan, Peoples may award restricted common shares to officers, key employees and non-employee directors. In general, the restrictions on the restricted common shares awarded to officers and key employees expire after periods ranging from one to five years . Since 2018, common shares awarded to non-employee directors have vested immediately upon grant with no restrictions. 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’ outstanding restricted common shares for the nine months ended September 30, 2025: Time-Based Vesting Performance-Based Vesting Number of Common Shares Weighted-Average Grant Date Fair Value Number of Common Shares Weighted-Average Grant Date Fair Value Outstanding at January 1, 2025 140,231 $ 28.72 586,227 $ 29.67 Awarded 33,435 30.15 159,097 33.41 Released ( 44,535 ) 30.74 ( 141,821 ) 32.21 Forfeited ( 12,908 ) 27.74 ( 38,763 ) 29.80 Outstanding at September 30, 2025 116,223 $ 28.46 564,740 $ 30.08 37 Table of Contents 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 Peoples recognizes stock-based compensation, which is included as a component of Peoples’ salaries and employee benefit costs, for restricted and unrestricted common shares, as well as purchases made by participants in the employee stock purchase plan. For restricted common shares, Peoples recognizes stock-based compensation based on the estimated fair value of the awards expected to vest on the grant date. The estimated fair value is then expensed over the vesting period, which is normally three years . Peoples also has an employee stock purchase plan whereby employees can purchase Peoples' common shares at a discount of 15 %. The following table summarizes the amount of stock-based compensation expense and related tax benefit recognized for each period: Three Months Ended Nine Months Ended September 30, September 30, (Dollars in thousands) 2025 2024 2025 2024 Employee stock-based compensation expense: Stock grant expense $ 1,163 $ 1,335 $ 5,051 $ 5,638 Employee stock purchase plan expense 35 ( 24 ) 106 115 Total employee stock-based compensation expense 1,198 1,311 $ 5,157 $ 5,753 Non-employee director stock-based compensation expense 131 115 $ 378 $ 376 Total stock-based compensation expense 1,329 1,426 $ 5,535 $ 6,129 Recognized tax benefit ( 310 ) ( 332 ) ( 1,291 ) ( 1,428 ) Net stock-based compensation expense $ 1,019 $ 1,094 $ 4,244 $ 4,701 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 $ 6.8 million at September 30, 2025, which will be recognized over a weighted-average period of 1.9 years. 38 Table of Contents Note 12 Revenue The following table details Peoples' revenue from contracts with customers: Three Months Ended Nine Months Ended September 30, September 30, (Dollars in thousands) 2025 2024 2025 2024 Insurance income: Commission and fees from sale of insurance policies (a) $ 4,384 $ 4,271 $ 13,346 $ 12,660 Performance-based commissions (b) 85 — 1,726 2,218 Trust and investment income: Fiduciary income (a) 2,974 2,838 8,931 8,605 Brokerage income (a) 2,440 2,044 6,825 5,875 Electronic banking income: Interchange income (b) 5,392 4,635 15,348 14,864 Promotional and usage income (a) 1,146 1,724 3,347 4,011 Deposit account service charges: Ongoing maintenance fees for deposit accounts (a) 1,747 1,741 5,061 5,175 Transaction-based fees (b) 2,527 2,779 7,287 7,907 Commercial loan swap fees (b) 381 163 1,652 274 Other non-interest income transaction-based fees (b) 452 243 1,241 1,336 Total revenue from contracts with customers $ 21,528 $ 20,438 $ 64,764 $ 62,925 Timing of revenue recognition: Services transferred over time $ 12,691 $ 12,618 $ 37,510 $ 36,326 Services transferred at a point in time 8,837 7,820 27,254 26,599 Total revenue from contracts with customers $ 21,528 $ 20,438 $ 64,764 $ 62,925 (a) Services transferred over time. (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 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. Peoples records contract liabilities for payments received for commission income related to the sale of insurance policies, 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, which is over the insurance policy period. 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 (Dollars in thousands) Balance, January 1, 2025 $ 899 $ 5,771 Additional income receivable 90 — Additional deferred income — 11,244 Receipt of income previously receivable ( 15 ) — Recognition of income previously deferred — ( 11,282 ) Balance, September 30, 2025 $ 974 $ 5,733 39 Table of Contents Note 13 Leases Peoples has elected certain practical expedients, in accordance with ASC 842 - Leases ("ASC 842"). As a lessor, Peoples has made an accounting policy election to exclude from the consideration in the contract, and from variable payments not included in the consideration in the contract, all sales and other similar taxes assessed. Peoples has also made an accounting policy election to account for each separate lease component of a contract and its associated non-lease components as a single lease component for all leases subject to ASC 842. Lessor Arrangements 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; however, Peoples reduces its residual asset risk by obtaining a security deposit from the lessee. As a lessor, Peoples originates commercial equipment leases either directly to the customer or indirectly through vendor programs. Equipment leases relate to 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. Operating leases assets are assessed for impairment consistent with Peoples’ fixed assets. Sales-type leases originated by Peoples, that Peoples has the positive intent and ability to hold for the foreseeable future or to maturity or payoff, are reported at the net investment of the lease, net of initial direct costs, charge-offs and an allowance for credit losses. Peoples considers leases past due if any required payments have not been received as of the date such payments were required to be made under the terms of the lease agreement. Upon detection of the reduced ability of a lessee to meet cash flow obligations, leases are typically charged down to the net realizable value, with the residual balance placed on nonaccrual status. Leases deemed to be uncollectable are charged against the allowance for credit losses, while recoveries of previously charged-off amounts are credited to the allowance for credit losses. Lease income noted in the table below includes (i) operating lease income, (ii) gains on the early termination of leases, net of any associated purchase accounting adjustments, (iii) month-to-month lease payments in excess of net investment in the lease, (iv) fees received for referrals, (v) gains and losses recognized on the sales of residual assets and (vi) syndication income. Additional information regarding Peoples' leases can be found in "Note 4 Loans and Leases." The table below details Peoples' lease income: Three Months Ended Nine Months Ended (Dollars in thousands) September 30, 2025 September 30, 2024 September 30, 2025 September 30, 2024 Interest and fees on leases (a) $ 9,520 $ 11,922 $ 30,005 $ 35,970 Lease income 3,643 3,069 11,322 7,258 Total lease income $ 13,163 $ 14,991 $ 41,327 $ 43,228 (a) Included in "Interest and fees on loans and leases" in the Unaudited Consolidated Statements of Operations. For additional information, see "Note 4 Loans and Leases" of the Notes to the Unaudited Condensed Consolidated Financial Statements. 40 Table of Contents The following table summarizes the net investment in leases, which is included in "Loans and leases, net of deferred fees and costs" on the Unaudited Consolidated Balance Sheets: (Dollars in thousands) September 30, 2025 December 31, 2024 Lease payments receivable, at amortized cost $ 412,462 $ 448,027 Estimated residual values 33,848 33,129 Initial direct costs 5,693 7,148 Deferred revenue ( 69,250 ) ( 81,706 ) Net investment in leases 382,753 406,598 Allowance for credit losses - leases ( 18,040 ) ( 12,893 ) Net investment in leases, after allowance for credit losses $ 364,713 $ 393,705 The following table summarizes the contractual maturities of leases: (Dollars in thousands) Balance Remaining three months ending December 31, 2025 $ 55,164 Year ending December 31, 2026 83,746 Year ending December 31, 2027 80,221 Year ending December 31, 2028 84,320 Year ending December 31, 2029 58,044 Thereafter 50,967 Lease payments receivable, at amortized cost $ 412,462 Lessee Arrangements Peoples leases certain banking facilities and equipment under various agreements with original terms providing for fixed monthly payments over periods generally ranging from two to 30 years. Certain leases may include options to extend or terminate the lease. Only those renewal and termination options which Peoples is reasonably certain of exercising are included in the calculation of the lease liability. Certain leases contain rent escalation clauses calling for rent increases over the term of the lease, which are included in the calculation of the lease liability. At September 30, 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. Operating lease ROU assets and lease liabilities are recognized at the commencement or the remeasurement date of a lease based on the present value of lease payments over the remaining lease term. Operating lease ROU assets include lease payments made at or before the commencement date and initial indirect costs. Operating lease ROU assets are presented net of any lease incentives. Short-term leases of certain facilities and equipment, with lease terms of 12 months or less, are recognized on a straight-line basis over the lease term and do not have an ROU asset or lease liability. The table below details Peoples' lease expense, which is included in "Net occupancy and equipment expense" in the Unaudited Consolidated Statements of Operations: Three Months Ended 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 Short-term lease expense 335 290 1,114 923 Variable lease expense 11 42 29 47 Total lease expense $ 996 $ 1,055 $ 3,111 $ 3,161 Peoples utilizes an incremental borrowing rate to determine the present value of lease payments for each lease, as the lease agreements do not provide an implicit rate. The estimated incremental borrowing rate reflects a secured rate and is based on the term of the lease. 41 Table of Contents The following table details the ROU assets, the lease liabilities and other information related to Peoples' operating leases at the dates shown: (Dollars in thousands) September 30, 2025 December 31, 2024 ROU assets: Other assets $ 9,863 $ 10,419 Lease liabilities: Accrued expenses and other liabilities $ 10,433 $ 10,968 Other information: Weighted-average remaining lease term 8.6 years 9.0 years Weighted-average discount rate 4.16 % 4.11 % Additions for ROU assets obtained during the year $ 1,333 $ 1,660 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 three months ending December 31, 2025 $ 625 Year ending December 31, 2026 2,413 Year ending December 31, 2027 2,146 Year ending December 31, 2028 1,625 Year ending December 31, 2029 1,173 Thereafter 4,608 Total undiscounted lease payments $ 12,590 Imputed interest $ ( 2,157 ) Total lease liabilities $ 10,433 42 Table of Contents