What changed in this filing

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Item 7. Management’s Discussion and Analysis

2026-02-26 compared with 2025-02-27 · 239 added, 365 removed, 1029 unchanged (37% of the section changed)

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Factors that might cause such a difference include, but are not limited to:

(1) the effects of interest rate policies, changes in the interest rate environment due to economic conditions and/or the fiscal and monetary policy measures undertaken by the U.S.

(1) the effects of interest rate policies, including any changes to such policies that may result from potential changes in the composition of the Federal Reserve Board, changes in the interest rate environment due to economic conditions and/or the fiscal and monetary policy measures undertaken by the U.S.

government and the Federal Reserve Board, including changes in the Federal Funds Target Rate, in response to such economic conditions, which may adversely impact interest rates, the interest rate yield curve, interest margins, loan demand and interest rate sensitivity;

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(8) Peoples may issue equity securities in connection with future acquisitions, which could cause ownership and economic dilution to Peoples’ current shareholders;

(9) changes in prepayment speeds, loan originations, levels of nonperforming assets, delinquent loans, charge-offs, and customer and other counterparties’ performance and creditworthiness generally, which may be less favorable than expected in light of recent inflationary pressures and continued elevated interest rates, and may adversely impact the amount of interest income generated;

(9) changes in prepayment speeds, loan originations, levels of nonperforming assets, delinquent loans, charge-offs, and customer and other counterparties’ performance and creditworthiness generally, which may be less favorable than expected in light of continued inflationary pressures and elevated interest rates, and may adversely impact the amount of interest income generated;

(10) Peoples may have more credit risk and higher credit losses to the extent there are loan concentrations by location or industry of borrowers or collateral;

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(13) the impact of assumptions, estimates and inputs used within models, which may vary materially from actual outcomes, including under the CECL model;

(14) adverse changes in the conditions and trends in the financial markets, including recent inflationary pressures, which may adversely affect the fair value of securities within Peoples’ investment portfolio, the interest rate sensitivity of Peoples’ consolidated balance sheet, and the income generated by Peoples’ trust and investment activities;

(14) adverse changes in the conditions and trends in the financial markets, including recent inflationary pressures and the impacts of potential or imposed tariffs on markets, which may adversely affect the fair value of securities within Peoples’ investment portfolio, the interest rate sensitivity of Peoples’ consolidated balance sheet, and the income generated by Peoples’ trust and investment activities;

(15) the volatility from quarter to quarter of mortgage banking income, whether due to interest rates, demand, the fair value of mortgage loans, or other factors;

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(17) Peoples’ ability to maintain required capital levels and adequate sources of funding and liquidity;

(18) the impact of larger or similar-sized financial institutions encountering problems, such as the failure in 2024 of Republic First Bank, and closures in 2023 of Silicon Valley Bank in California, Signature Bank in New York, First Republic Bank in California, and Heartland Tri-State Bank in Kansas, which may adversely affect the banking industry and/or Peoples’ business generation and retention, funding and liquidity, including Peoples’ continued ability to grow deposits or maintain adequate deposit levels, and may further result in potential increased regulatory requirements, increase reputational risk and potential impacts to macroeconomic conditions;

(18) the impact of larger or similar-sized financial institutions encountering problems, such as the failure in 2024 of Republic First Bank, and closures in 2023 of Silicon Valley Bank in California, Signature Bank in New York, First Republic Bank in California, which may adversely affect the banking industry and/or Peoples’ business generation and retention, funding and liquidity, including Peoples’ continued ability to grow deposits or maintain adequate deposit levels, and may further result in potential increased regulatory requirements, increase reputational risk and potential impacts to macroeconomic conditions;

(19) Peoples’ ability to secure confidential information and deliver products and services through the use of computer systems and telecommunications networks, including those of Peoples’ third-party vendors and other service providers, which may prove inadequate, and could adversely affect customer confidence in Peoples and/or result in Peoples incurring a financial loss;

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(25) the impact on Peoples’ businesses, personnel, facilities or systems of losses related to acts of fraud, theft, misappropriation or violence;

(26) the impact on Peoples’ businesses, as well as on the risks described above, of various domestic or international widespread natural or other disasters including severe weather events, pandemics, cybersecurity attacks, system failures, civil unrest, military or terrorist activities or international conflicts (including Russia’s war in Ukraine and the ongoing conflicts in the Middle East);

(27) the potential deterioration of the U.S.

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(30) risks and uncertainties associated with Peoples’ entry into new geographic markets and risks resulting from Peoples’ inexperience in these new geographic markets;

(31) the risk that expected revenue synergies and cost savings from the Limestone Merger may not be fully realized or realized within the expected time frame;

(31) changes in laws or regulations imposed by Peoples’ regulators impacting Peoples’ capital actions, including dividend payments and share repurchases;

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(35) the effect of a fall in stock market prices on the asset and wealth management business;

(36) the risk that energy tax credits purchased and used by Peoples to reduce tax liabilities will be disallowed by the Internal Revenue Service;

(37) other risk factors relating to the banking industry or Peoples as detailed from time to time in Peoples’ reports filed with the SEC, including those risk factors included in the disclosures under the heading “ITEM 1A RISK FACTORS” of this Form 10-K.

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Mergers and Acquisitions

◦ During 2024, Peoples incurred $0.2 million of acquisition-related expenses, compared to $17.0 million for 2023 and $3.0 million for 2022.

The acquisition-related expenses in 2024 and 2023 were related to the Limestone Merger.

The acquisition-related expenses in 2022 were related to the Vantage acquisition (defined below), the merger with Premier Financial Bancorp, Inc (“Premier Merger”), and the Limestone Merger.

◦ During 2025, Peoples incurred noacquisition-related expenses, compared to $0.2 million for 2024 and $17.0 million for 2023.

The acquisition-related expenses in 2024 and 2023 were related to a merger that occurred on the close of business on April 30, 2023, whereby Limestone Bancorp Inc.

and Limestone Bank merged with and into Peoples and its wholly-owned subsidiary, Peoples Bank, respectively (collectively, the “Limestone Merger”).

◦ On October 25, 2022, Peoples announced the Limestone Merger, a transaction valued at $177.9 million.

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Peoples also recorded goodwill in the amount of $68.8 million and other intangible assets of $27.7 million, which consisted of core deposit intangibles.

◦ On April 1, 2022, Peoples Insurance acquired substantially all of the assets and rights of an insurance agency with five locations in eastern Kentucky and certain rights to related customer accounts, which were previously developed and maintained by Elite Agency, Inc.

(“Elite”), pursuant to an Asset Purchase Agreement between Peoples Insurance and Elite.

Total consideration for this transaction was $4.4 million.

Peoples recognized intangibles of $2.1 million, primarily comprised of a customer relationship intangible.

◦ On March 7, 2022, Peoples Bank purchased 100% of the equity of Vantage, a nationwide provider of equipment financing headquartered in Excelsior, Minnesota (the “Vantage acquisition”).

Peoples Bank acquired assets comprising Vantage’s lease business, including $154.9 million in leases and certain third-party debt in the amount of $106.9 million.

Peoples Bank paid cash consideration of $54.0 million and also repaid approximately $28.9 million in recourse debt on behalf of Vantage.

Vantage offers mid-ticket equipment leases, primarily for business essential information technology equipment across a wide array of industries.

Upon completion of the Vantage transaction, Vantage became a subsidiary of Peoples Bank.

As a subsidiary, Vantage has continued to operate under the name Vantage Financial, which leverages Vantage’s strong brand recognition within the equipment finance industry.

Peoples recorded goodwill in the amount of $27.2 million and other intangible assets of $13.2 million, which included a customer relationship intangible, a trade-name intangible and non-compete agreements related to this transaction.

Other Significant Developments

◦ During 2024, Peoples recorded a provision for credit losses of $24.8 million, compared to a provision for credit losses of $15.2 million for 2023 and a recovery of credit losses of $3.5 million for 2022.

The provision for credit losses during 2024 was driven by (i) higher net charge-offs, (ii) an increase in reserves for individually analyzed loans and leases, (iii) economic forecast deterioration and (iv) loan growth.

The provision for credit losses during 2023 was primarily driven by (i) the

addition of the provision for the loans acquired in the Limestone Merger, (ii) loan growth and (iii) an increase in charge-offs, partially offset by a release of reserves on individually analyzed loans and the use of updated loss drivers.

◦ During 2025, Peoples recorded a provision for credit losses of $42.2 million, compared to a provision for credit losses of $24.8 million for 2024 and a provision for credit losses of $15.2 million for 2023.

The provision for credit losses during 2025 was driven by (i) net charge-offs, (ii) loan growth, (iii) deterioration in the economic forecasts used within the CECL model, (iv) a periodic refresh in the loss drivers utilized within the CECL model, and (v) an increase in reserves for leases originated by the North Star Leasing division.

The provision for credit losses during 2024 was primarily driven by (i) net charge-offs, (ii) an increase in reserves for individually analyzed loans and leases, (iii) economic forecast deterioration, and (iv) loan growth.

◦ During the fourth quarter of 2025, Peoples completed a sale of an OREO property acquired in a previous acquisition, which resulted in a loss of $0.9 million.

◦ During the fourth quarter of 2025, Peoples redeemed early a tranche of subordinated debt acquired in the Limestone Merger, which resulted in a loss of $0.8 million.

◦ During the third quarter of 2025, Peoples executed the sale of $75.0 million of available-for-sale securities for an after-tax loss of $2.7 million.

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

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

Peoples incurred $185,000 in pension settlement charges in 2022, compared to $143,000 in 2021, due to the aggregate amount of lump-sum distributions to participants in Peoples’ defined benefit pension plan exceeding the threshold for recognizing settlement charges during the period.

◦ 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, replacing the February 27, 2020 share repurchase program which had authorized Peoples to purchase up to an aggregate of $40.0 million of Peoples’ outstanding common shares.

◦ 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.

During 2025, Peoples repurchased 30,692 common shares totaling $0.8 million under the share repurchase program.

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Bank Loan Agreement.

A Sixth Amendment to the U.S.

Bank Loan Agreement, entered into on March 31, 2024, extended the maturity from April 1, 2024 to March 31, 2025.

A Seventh Amendment to the U.S.

Bank Loan Agreement, entered into on March 28, 2025, extended the maturity from March 31, 2025 to March 30, 2026.

Bank Loan Agreement provides Peoples with a revolving line of credit in the maximum aggregate principal amount of $30.0 million that may be used:

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Bank Loan Agreement.

◦ To combat the effects of ongoing inflationary pressures, the Federal Reserve Board increased the Federal Funds Target Rate range to 0.25% to 0.50% beginning on March 16, 2022, and continued to raise rates up to 5.50% on July 27, 2023.

The Federal Reserve Board had kept rates unchanged since July 2023, before beginning to cut rates in September 2024.

This rate remained unchanged until the latter half of 2024, when multiple rate cuts reduced the rate down to 4.25% to 4.50%.

The Federal Reserve Board cut interest rates three times during 2025, further reducing the rate to 3.50% to 3.75%.

The Federal Reserve Board has signaled that future rate reductions continue to be a possibility.

The impact of these transactions, where material, is discussed in the applicable sections of this Management’s Discussion and Analysis of Financial Condition and Results of Operations.

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accordingly, as this information changes, the Consolidated Financial Statements could reflect different estimates or assumptions.

Management has identified four accounting policies as those that, due to the judgments, estimates and assumptions inherent in the policies, are critical to an understanding of Peoples’ Consolidated Financial Statements and Management’s Discussion and Analysis of Financial Condition and Results of Operations.

The four accounting policies identified were the allowance for credit losses, business combinations, goodwill and fair value measurements.

These four accounting policies are described in further detail below.

Management has identified two accounting policies as those that, due to the judgments, estimates and assumptions inherent in the policies, are critical to an understanding of Peoples’ Consolidated Financial Statements and Management’s Discussion and Analysis of Financial Condition and Results of Operations.

The two accounting policies identified were the allowance for credit losses and fair value measurements.

These two accounting policies are described in further detail below.

Allowance for Credit Losses

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Loans that do not share similar risk characteristics are evaluated on an individual basis.

The allowance for credit losses related to these specific loans was based on management’s estimate of potential losses as determined by (1) the present value of expected future cash flows, (2) the fair value of collateral if the loan is determined to be collateral dependent, or (3) the loan’s observable market price.

The allowance for credit losses related to these specific loans was based on management’s estimate of potential losses as determined by (1) the present value

of expected future cash flows, (2) the fair value of collateral if the loan is determined to be collateral dependent, or (3) the loan’s observable market price.

Peoples also completes a quarterly evaluation for unfunded commitments for loans that are not unconditionally cancellable, which includes construction loans, floor plan lines of credit, home equity lines of credit, other credit lines and letters of credit.

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Excluding consideration of general reserve adjustments, this sensitivity analysis would result in a hypothetical increase in the allowance for credit losses of approximately $8.7 million at December 31, 2025.

Business Combinations

Peoples utilizes the acquisition method of accounting for business combinations.

As of the acquisition date, Peoples records the acquired company’s net assets at fair value.

The determination of fair value as of the acquisition date requires management to consider various factors that involve judgment and estimation, including the application of discount rates, prepayment rates, attrition rates, future estimates of interest rates, as well as many other assumptions.

These assumptions can have a material impact on the estimated fair value, and as a result, the goodwill recorded in a business combination.

ASC 805 allows for a measurement period of 12 months beyond the acquisition date to finalize the fair value measurement of the acquired company’s net assets as additional information existing as of the acquisition date becomes available.

Measurement period adjustments are recorded through goodwill.

Based on recent acquisitions, loans and leases acquired through business combinations have comprised the majority of purchase accounting adjustments in arriving at the fair values of acquired assets and liabilities, with the most significant adjustments relating to the creditworthiness of the acquired portfolios.

The assumptions and inputs impacting the allowance for credit losses are discussed in the above paragraphs of this section of Management’s Discussion and Analysis.

Those same judgments drive the measurement of the credit adjustments of acquired loan and lease portfolios when arriving at fair value.

For further information regarding business combination accounting, please refer to “Note 20 Acquisitions.”

Peoples records goodwill as a result of acquisitions accounted for under the acquisition method of accounting.

Under the acquisition method, Peoples is required to allocate the consideration paid for an acquired company to the assets acquired, including identified intangible assets, and liabilities assumed based on their estimated fair values at the date of acquisition.

Goodwill represents the excess cost over the fair value of net assets acquired and is not amortized but is tested for impairment when indicators of impairment exist, and, in any case, at least annually.

For further information regarding the fair values of assets and liabilities recently acquired in business combinations, please refer to “Note 20 Acquisitions.”

The value of recorded goodwill is supported by revenue that is driven by the volume of business transacted and Peoples’ ability to provide quality, cost-effective services in a competitive market place.

A decline in earnings as a result of a lack of growth or the inability to deliver cost-effective services over sustained periods can lead to impairment of goodwill that could adversely impact earnings in future periods.

Goodwill impairment exists when the carrying value of the reporting unit (as defined by US GAAP) exceeds its fair value and an impairment loss is recognized in earnings in an amount equal to that excess, limited to the total amount of goodwill allocated to the reporting unit.

The process of evaluating goodwill for impairment involves highly subjective and complex judgments, estimates and assumptions regarding the fair value of Peoples’ reporting unit and, in some cases, goodwill itself.

As a result, changes to these judgments, estimates and assumptions in future periods could result in materially different results.

Peoples currently maintains a single reporting unit for goodwill impairment testing.

While quoted market prices exist for Peoples’ common shares since they are publicly traded, these market prices do not necessarily reflect the value associated with gaining control of an entity.

Thus, management takes into account all appropriate fair value measurements in determining the estimated fair value of the reporting unit.

Peoples performs its required annual impairment test as of October 1st each year.

Peoples first assesses qualitative factors to determine whether it is more-likely-than-not that the fair value of the reporting unit is less than its carrying amount, including goodwill.

In this evaluation, Peoples assesses relevant events and circumstances, which may include macroeconomic conditions, industry and market conditions, cost factors, overall financial performance, events specific to Peoples, significant changes in the reporting unit, or a sustained decrease in stock price.

If Peoples determines that it is more-likely-than-not that the fair value of the reporting unit is greater than its carrying amount, then performing the quantitative impairment test is unnecessary.

None of the indicators noted above triggered the quantitative test, but management felt it was prudent to perform a quantitative test given the time since Peoples' prior quantitative test.

At October 1, 2024, management completed a quantitative assessment of goodwill.

This test resulted in management concluding that the fair value of the reporting unit exceeded its carrying value.

Peoples is required to perform interim tests for goodwill impairment in subsequent quarters if events occur or circumstances change that indicate potential goodwill impairment exists, such as adverse changes to Peoples’ business or a significant decline in Peoples’ market capitalization.

For further information regarding goodwill, refer to “Note 7 Goodwill and Other Intangible Assets.”

Fair Value Measurements

As a financial services company, the carrying value of certain financial assets and liabilities is impacted by the application of fair value measurements, either directly or indirectly.

In certain cases, an asset or liability is measured and reported at fair value on a recurring basis, such as available-for-sale investment securities.

In other cases, management must

rely on estimates or judgments to determine if an asset or liability not measured at fair value warrants an impairment write-down or whether a valuation reserve should be established.

Given the inherent volatility, the use of fair value measurements may have a significant impact on the carrying value of assets or liabilities, or result in material changes to the Consolidated Financial Statements, from period to period.

Detailed information regarding fair value measurements can be found in “Note 2 Fair Value of Financial Instruments.”

Peoples designates certain of its investment securities as available-for-sale, the carrying value of which is impacted by the application of fair value measurements.

The fair value used by Peoples in the measurement of its available-for-sale portfolio 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, 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 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.

Detailed information regarding the fair value of available-for-sale securities can be found in “Note 2 Fair Value of Financial Instruments.”

New Accounting Guidance Pending Adoption

ASU 2023-09 - Income Taxes (Topic 740):

Improvements to Income Tax Disclosures:

The FASB issued ASU 2023-09 on December 14, 2023.

The standard requires disaggregated information about a reporting entity’s effective tax rate reconciliation as well as information on income taxes paid.

The standard is intended to benefit investors by providing more detailed income tax disclosures that would be useful in making capital allocation decisions.

ASU 2023-09 applies to all entities subject to income taxes.

For public business entities, the new requirements were effective for annual periods beginning after December 15, 2024.

The guidance will be applied on a prospective basis with the option to apply the standard retrospectively with early adoption is permitted.

Peoples does not expect the update will have a material impact on its consolidated financial statements.

ASU 2025-08 - Financial Instruments - Credit Losses (Topic 326):

Purchased Loans:

The FASB issued an Accounting Standards Update (“ASU”) 2025-08 on November 12, 2025.

The amendments “expand the population of acquired financial assets subject to the gross-up approach in Topic 326.” Specifically, the ASU expands the scope to include purchased “seasoned” loans, which are evaluated after purchase credit deteriorated (“PCD”) loans have been identified.

These seasoned loans are defined as non-PCD loans that are obtained in a business combination accounted for using the acquisition method or non-PCD loans that are (i) obtained through a transfer that is not a business combination accounted for using the acquisition method or (ii) initially recognized through the consolidation of a variable interest entity.

The ASU applies to all public entities subject to the guidance in Topic 326, including public business entities, privates companies, and not-for-profit entities.

The amendments in this update apply “prospectively to loans that are acquired on or after the initial application date.” The amendments in ASU 2025-08 are effective for all entities for fiscal years beginning after December 15, 2026 and interim periods within those annual reporting periods, with early adoption permitted.

Peoples is currently evaluating the impact of this guidance.

EXECUTIVE SUMMARY

Net income for the year ended December 31, 2025, was $106.8 million, compared to $117.2 million for 2024 and $113.4 million for 2023, representing earnings per diluted common share of $2.99, $3.31, and $3.44, respectively.

The increases in 2024 earnings when compared to 2023 and 2022 were driven by increases in net interest income, partially offset by increases in non-interest expenses.

The decreases in 2025 earnings when compared to 2024 and 2023 were driven by increases in provision for credit losses and non-interest expenses.

Non-core items, and the related tax effect of each, negatively impacted earnings per diluted common share by $0.13 for 2025 compared to $0.07 for 2024 and $0.59 for 2023.

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Net interest margin was 4.14% in 2025, compared to 4.21% in 2024 and 4.55% in 2023.

The increases in net interest income when compared to 2023 were driven by increases in market interest rates and the full year impact of net interest income from the Limestone Merger.

Net interest margin for 2024 decreased 34 basis points when compared to 2023, which was primarily driven by higher borrowings costs, which offset higher earning asset yields.

Net interest margin increased during 2023 when compared to 2022 largely due to increases in market interest rates, additional net interest income stemming from the Limestone Merger, and improvements in investment yields.

Accretion income, net of amortization expense, from acquisitions totaled $25.2 million for 2024, $25.2 million for 2023, and $11.6 million for 2022, adding 30 basis points, 34 basis points, and 19 basis points, respectively, to the net interest margin.

The provision for credit losses for 2024 was $24.8 million, compared to a provision of credit losses of $15.2 million for 2023 and a recovery of credit losses of $3.5 million for 2022.

The increase in net interest income when compared to 2024 was driven by lower deposit and borrowing costs.

Net interest margin for 2025 decreased 7 basis points when compared to 2024, which was primarily driven by lower accretion income.

Net interest margin decreased during 2024 when compared

to 2023 largely due to higher borrowing costs, which offset higher earning asset yields.

Accretion income, net of amortization expense, totaled $9.6 million for 2025, compared to $25.2 million for both 2024 and 2023, adding 11 basis points, 30 basis points, and 34 basis points, to the net interest margin for 2025, 2024, and 2023, respectively.

The provision for credit losses for 2025 was $42.2 million, compared to a provision of credit losses of $24.8 million for 2024 and $15.2 million for 2023.

Net charge-offs for 2025 were $29.4 million, compared to $23.2 million for 2024 and $8.5 million for 2023.

Net charge-offs as a percent of average total loans were 0.45% for 2025, 0.37% for 2024 and 0.15% for 2023.

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

The provision for credit losses during 2023 compared to the provision for credit losses during 2022 was primarily driven by the addition of the provision for loans acquired in the Limestone Merger.

The increase in net-charge-offs as a percent of average total loans was driven by charge-offs on small-ticket leases primarily occurring in the second half of 2024.

The provision for credit losses during 2025 was mainly a result of (i) net charge-offs, (ii) loan growth, (iii) deterioration in the economic forecasts used within the CECL model, (iv) a periodic refresh in loss drivers utilized within the CECL model, and (v) an increase in reserves for leases originated by the North Star Leasing division.

The increase in provision for credit losses during 2024 compared to the provision for credit losses during 2023 was primarily driven by (i) net charge-offs, (ii) an increase in reserves for individually analyzed loans and leases, (iii) economic forecast deterioration, and (iv) loan growth.

The increase in net-charge-offs as a percent of average total loans was driven by charge-offs on small-ticket leases primarily occurring in the second half of 2024 and continuing into 2025.

Total non-interest income, excluding gains and losses, for 2025 increased $6.7 million, or 6%, when compared to 2024.

The increase was driven by (i) a $2.6 million increase in lease income, primarily attributable to operating lease income, (ii) a $2.4 million increase in trust and investment income driven by an increase in assets under administration and management, (iii) a $1.4 million increase in insurance income driven by higher contingency income and market increases for premiums, (iv) a $0.9 million increase in deposit account service charge income, and (vi) a $0.7 million increase in mortgage banking income.

Total non-interest income for 2023 increased $8.6 million, or 11% when compared to 2022.

The increase was driven by growth of $4.1 million in electronic banking income, $2.3 million in insurance income, and $2.1 million in deposit account services charges.

Total non-interest expense for 2024 and 2023, was impacted by the Limestone Merger and acquisition-related non-interest expenses, which added $0.2 million and $17.0 million, respectively, across various line-items within non-interest expense.

The table below summarizes the amount of acquisition-related expenses for each line item that is a component of non-interest expense.

Acquisition-related expenses are considered a non-core non-interest expense by Peoples.

This information is used by Peoples to provide information useful to investors in understanding Peoples’ operating performance and trends.

(Dollars in thousands) 2024 2023 2022

Non-interest expense:

Salaries and employee benefit costs $ 150,041 $ 144,031 112,690

Data processing and software expense 25,221 21,607 14,241

Net occupancy and equipment expense 24,151 21,368 19,516

Professional fees 12,109 17,041 12,094

Amortization of other intangible assets 11,161 11,222 7,763

Electronic banking expense 7,548 7,150 9,231

Marketing expense 3,914 5,017 3,728

FDIC insurance premiums 4,929 4,785 3,702

Franchise tax expense 3,222 3,540 3,487

Other loan expenses 4,147 2,859 2,735

Communication expense 3,145 2,834 2,484

Operating lease expense 3,539 1,687 —

Travel and entertainment expense 2,656 2,401 1,400

Other non-interest expense 18,033 20,945 14,076

Total non-interest expense 273,816 266,487 207,147

Acquisition-related non-interest expense:

Salaries and employee benefit costs 16 5,827 29

Data processing and software expense (252) 1,850 410

Net occupancy and equipment expense 36 109 50

Professional fees 38 6,062 2,407

Electronic banking expense (100) 115 (92)

Marketing expense 11 81 51

Other loan expenses — 2 (4)

Communication expense — 1 2

Travel and entertainment expense 84 326 —

Other non-interest expense 336 2,597 163

Total acquisition-related non-interest expense 169 16,970 3,016

Non-interest expense excluding acquisition-related expense:

Salaries and employee benefit costs 150,025 138,204 112,661

Data processing and software expense 25,473 19,757 13,831

Net occupancy and equipment expense 24,115 21,259 19,466

Professional fees 12,071 10,979 9,687

Amortization of other intangible assets 11,161 11,222 7,763

Electronic banking expense 7,648 7,035 9,323

Marketing expense 3,903 4,936 3,677

FDIC insurance premiums 4,929 4,785 3,702

Franchise tax expense 3,222 3,540 3,487

Other loan expenses 4,147 2,857 2,739

Communication expense 3,145 2,833 2,482

Operating lease expense 3,539 1,687 —

Travel and entertainment expense 2,572 2,075 1,400

Other non-interest expense 17,697 18,348 13,913

Total non-interest expense excluding acquisition-related expense $ 273,647 $ 249,517 $ 204,131

The increase was because of (i) a $5.1 million increase in lease income, driven by increases in month-to-month lease income and operating lease income, (ii) a $1.9 million increase in trust and investment income due to an increase in assets under administration and management, and (iii) a $0.3 million increase in bank owned life insurance income.

These increases were partially offset by a $0.6 million decrease in deposit account service charges due to customer activity.

Total non-interest income excluding gains and losses, for 2024 increased $9.1 million, or 10%, when compared to 2023.

The increase was driven by (i) a $2.6 million increase in lease income, attributable to operating lease income, (ii) a $2.4 million increase in trust and investment income driven by an increase in assets under administration and management, (iii) a $1.4 million increase in insurance income because of higher contingency income and increased premiums, (iv) a $0.9 million increase in deposit account service charge income, and (v) a $0.7 million increase in mortgage banking income.

Total non-interest expense was $282.3 million for 2025, an increase of $8.5 million, or 3%, compared to 2024.

Excluding acquisition-related expenses, non-interest expenses increased $24.1 million, or 10%, due to increases in all non-interest expense line items except for marketing expense, franchise tax expense and amortization of other intangible assets, which decreased $1.0 million, $0.3 million, and $0.1 million, respectively, when compared to 2023.

The increases were primarily driven by recent growth, including

through acquisitions.

Total non-interest expense was $266.5 million for 2023, an increase of $59.3 million compared to 2022.

The growth was driven by increases of (i) $31.3 million in salaries and employee benefit costs, (ii) $7.4 million in data processing and software expenses, (iii) $4.9 million in professional fees, and (iv) $3.5 million in intangible asset amortization.

These increases were primarily attributable to the Limestone Merger, as well as organic growth.

The higher expense was driven by increases of (i) $6.5 million in salaries and employee benefits costs, which were driven by higher sales-based and incentive compensation and medical costs, (ii) $3.9 million in data processing and software expenses, due to costs associated with recent technology projects, and (iii) $1.1 million in operating lease expense, partially offset by a decrease of $2.3 million in amortization of other intangible assets.

Total non-interest expense was $273.8 million for 2024, an increase of $7.3 million, or 3%, compared to 2023.

Excluding acquisition-related expenses, non-interest expenses increased $24.1 million, or 10%, when compared to 2023 due to increases in salaries and employee benefit costs, data processing and software expenses, and net occupancy expense.

The increases were primarily driven by recent growth, including through acquisitions.

Peoples’ efficiency ratio, which is calculated as total non-interest expense less amortization of other intangible assets divided by fully tax-equivalent (“FTE”) net interest income, plus total non-interest income, excluding all gains and losses, was 58.7% for 2025, compared to 58.0% for 2024 and 58.7% for 2023.

The efficiency ratio improved when compared to prior periods due to increased revenue.

The efficiency ratio, when adjusted for non-core items, was 57.9% for 2024, 54.4% for 2023 and 58.6% for 2022.

The increase in the efficiency ratio, adjusted for non-core items, for 2024 compared to 2023 was driven by higher non-interest expense.

The efficiency ratio and the efficiency ratio, adjusted for non-core items for 2023 improved when compared to 2022, due to higher net interest income driven by the Limestone Merger, increases in market interest rates, and higher non-interest income.

The efficiency ratio increased when compared to 2024 due to increased non-interest expense.

The efficiency ratio for 2024 improved when compared to 2023 due to increased revenue.

Income tax expense totaled $28.0 million for 2025, compared to $32.3 million for 2024 and $31.8 million for 2023.

The effective tax rate for 2024 was 21.6%, 21.9% for 2023 and 21.3% for 2022.

The increased expense for 2024 compared to 2023 and 2022 was driven by higher pre-tax income.

Peoples’ effective tax rate has increased primarily due to apportionment in additional states due to recent acquisitions, but was lower in 2024 due to a one-time benefit relating to a prior year amended return.

The effective tax rate was 20.8% for 2025, 21.6% for 2024 and 21.9% for 2023.

The decreased expense for 2025 compared to 2024 and 2023 was driven by lower pre-tax income.

The reduction in the effective tax rate was due to updated state tax rates driven by apportionment, reducing tax expense by $0.9 million, and a $0.7 million benefit relating to tax credits purchased in the fourth quarter of 2025.

Total assets increased 4% to $9.65 billion at December 31, 2025, compared to $9.25 billion at year-end 2024.

The increase was primarily due to increases of $398.9 million in loans and leases and $57.4 million in investment securities, partially offset by a decrease of $28.7 million in cash and cash equivalents.

The increase in loans and leases compared to December 31, 2023 was driven by growth of $162.7 million and $66.3 million in the commercial and industrial and premium finance segments, respectively, which was partially offset by a reduction of $40.9 million in commercial real estate.

The decrease in cash and cash equivalents is primarily related to investing activity and the purchase of both available-for-sale and held-to-maturity securities, partially offset by cash provided by operating activities.

The increase in loans and leases compared to December 31, 2024, was driven by increases of $208.0 million in other commercial real estate loans, $188.1 million in commercial and industrial loans, and $30.7 million in indirect consumer loans, partially offset by a decrease of $40.9 million in leases.

The increase in investment securities from at December 31, 2024, was driven by purchases of longer duration, higher yielding held-to-maturity investment securities.

Management underwent investment portfolio restructurings during 2023 to increase portfolio yield and reduce Peoples’ sensitivity to falling intermediate and long-term interest rates.

The allowance for credit losses increased to $75.7 million, or 1.12% of total loans, net of deferred fees and costs, compared to $63.3 million and 1.00%, respectively, at December 31, 2024.

The increase in the allowance balance at December 31, 2024 when compared to at December 31, 2023 was driven by an increase in reserves for individually analyzed loans and leases, as well as loan growth.

The decrease in the ratio of the allowance for credit losses to total loans was due to loan growth.

Total liabilities were $8.14 billion at December 31, 2024, an increase of $38.8 million since December 31, 2023, primarily due to an increase of $487.3 million in total deposits which was driven primarily by promotional offerings on retail CDs, partially offset by a decrease in $435.2 million in total borrowings due to the payoff of the BTFP and lower FHLB overnight borrowings.

The increase in the allowance balance and the ratio of the allowance for credit losses to total loans at December 31, 2025, when compared to at December 31, 2024, was driven by (i) loan growth, (ii) deterioration in the economic forecasts used within the CECL model, (iii) a periodic refresh in the loss drivers utilized within the CECL model, (iv) an increase in reserves for leases originated by the North Star Leasing division, and (v) an increase in individually analyzed loans and leases.

Total liabilities were $8.44 billion at December 31, 2025, an increase of $300.4 million since December 31, 2024, primarily due to increases of $336.8 million in short-term borrowings and $20.0 million in period-end deposits, partially offset by a decrease of $33.9 million in long-term borrowings.

Total demand deposit accounts comprised 35% and 34% of total deposits at December 31, 2025, and at December 31, 2024, respectively.

Total stockholders’ equity was $1.11 billion at December 31, 2024, an increase of $58.1 million, or 6%, from December 31, 2023 due to net income of $117.2 million for the full year of 2024, partially offset by an increase in other comprehensive loss of $8.8 million and dividends paid of $56.3 million.

The increase in other comprehensive loss was the result of changes in the market value of available-for-sale investment securities, which were primarily driven by changes in market interest rates.

Total stockholders’ equity was $1.21 billion at December 31, 2025, an increase of $95.0 million, or 9%, from December 31, 2024, due to net income of $106.8 million for the full year of 2025 and a decrease in other comprehensive loss of $39.8 million, partially offset by dividends paid of $58.1 million.

The decrease in other comprehensive loss was the result of changes in the market value of available-for-sale investment securities, which were primarily driven by changes in market interest rates.

Peoples continued to exceed the capital required by the Federal Reserve Board to be deemed “well capitalized.” Peoples’ tier 1 capital ratio was 12.73% at December 31, 2025, versus 12.39% at December 31, 2024, while the total capital ratio was 13.78% at December 31, 2025, versus 13.58% at December 31, 2024.

The common equity tier 1 risk-based capital ratio was 12.29% at December 31, 2025, compared to 11.95% at December 31, 2024.

Compared to at December 31, 2023, the tier 1 risk-based capital and the total risk-based capital ratios improved due to higher net income, partially offset by dividends paid.

Compared to at December 31, 2024, the tier 1 risk-based capital and the total risk-based capital ratios improved due to net income, partially offset by dividends paid.

Peoples’ book value and tangible book value per share were $33.78 and $22.77, respectively, at December 31, 2025, compared to $31.26 and $19.94, respectively, at December 31, 2024.

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Short-term FHLB advances (f) 128,156 5,580 4.35 % 121,739 6,675 5.48 % 353,532 18,058 5.11 %

Repurchase agreements and other 179,567 8,870 5.36 % 107,935 1,664 1.54 % 113,434 275 0.24 %

Repurchase agreements and other (g) 118,667 4,562 3.84 % 179,567 8,870 5.36 % 107,935 1,877 1.74 %

Total short-term borrowings 246,823 10,142 4.11 % 301,306 15,545 5.16 % 461,467 19,935 4.32 %

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Related interest income on loans originated for sale prior to the loan being sold is included in loan interest income.

(f) Interest related to interest rate swap transactions is included, as appropriate to the transaction, in interest expense on short-term FHLB advances and interest expense on brokered deposits for the periods presented in which FHLB advances and brokered deposits were being utilized.

Peoples’ average balances compared to prior periods have been impacted by recent acquisitions, which included:

(i) the Limestone Merger as of the close of business on April 30, 2023, which added to average short-term investments, average total investment securities, and average loans, deposit and borrowed funds balances and (ii) the acquisition of Vantage on March 7, 2022, which added to average lease and borrowed funds balances.

Peoples’ cash balances have decreased primarily due to a decrease in interest-bearing deposits in other banks, mostly with the FRB.

The increases in market interest rates have increased asset yields and increased borrowing costs.

(f) Interest related to interest rate swap transactions is included, as appropriate to the transaction, in interest expense on short-term FHLB advances or interest expense on brokered deposits for the periods presented in which FHLB advances and/or brokered deposits were being utilized.

(g) Includes wholesale and other borrowings, which in 2024 was impacted by the Bank Term Funding Program.

Peoples’ average balances compared to the 2023 balances have been impacted by the Limestone Merger as of the close of business on April 30, 2023, which added to average short-term investments, average total investment securities, and average loans, deposit and borrowed funds balances.

The asset yields and borrowing costs have moved in tandem with recent interest rate changes.

The following table provides an analysis of the changes in FTE net interest income:

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FTE net interest income increased $6.3 million, or 2%, for 2025 when compared to 2024, and net interest margin decreased 7 basis points to 4.14%.

The increase in net interest income was driven by decreased borrowing costs.

The decrease in net interest margin for 2025 compared to 2024 was primarily driven by lower accretion income.

Accretion income, net of amortization expense, from acquisitions was $9.6 million for 2025 and $25.2 million for 2024, which added 11 and 30 basis points to net interest margin for 2025 and 2024, respectively.

During 2024, FTE net interest income increased $9.1 million, or 3%, when compared to 2023, and net interest margin decreased 34 basis points to 4.21%.

The increase in net interest income was driven by increases in market interest rates and an additional four months of income from the Limestone Merger.

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Accretion income, net of amortization expense, from acquisitions was $25.2 million for 2024 and 2023, which added 30 and 34 basis points to net interest margin for 2024 and 2023, respectively.

During 2023, FTE net interest income increased $85.9 million, or 34%, when compared to 2022, and net interest margin increased 59 basis points to 4.55%.

The increase in net interest income was driven by increase in market interest rates, additional net interest income from the Limestone Merger, and improved investment yields.

Accretion income, net of amortization expense, from acquisitions was $25.2 million for 2023, which added 34 basis points to net interest margin for 2023 and was primarily driven by the Limestone Merger.

Detailed information regarding changes in the Consolidated Balance Sheets can be found under appropriate captions of the “FINANCIAL CONDITION” section of this discussion.

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(Dollars in thousands) 2025 2024 2023

Provision for (Recovery of) other credit losses $ 23,524 $ 14,236 $ (4,560)

Provision for other credit losses $ 41,315 $ 23,524 $ 14,236

Provision for checking account overdrafts 847 1,263 938

Provision for (Recovery of) credit losses $ 24,787 $ 15,174 $ (3,510)

Provision for credit losses $ 42,162 $ 24,787 $ 15,174

As a percent of average total loans 0.64 % 0.40 % 0.27 %

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The CECL methodology utilized by Peoples relies on economic forecasts, as well as other key assumptions including prepayments, probability of default and loss given default.

For 2024, the increase in the provision for credit losses compared to 2023 was mainly a result of (i) higher net charge-offs, (ii) an increase in reserves for individually analyzed loans and leases, (iii) economic forecast deterioration and (iv) loan growth.

During 2023, the provision for credit losses was driven by (i) the addition of the provision for the loans acquired in the Limestone Merger, (ii) loan growth and (iii) an increase in charge-offs, partially offset by a release of reserves on individually analyzed loans and the use of updated loss drivers.

During 2022, the recovery of credit losses was driven by improvements in economic forecasts, coupled with loan pay-offs.

For 2025, the increase in the provision for credit losses compared to 2024 was mainly a result of (i) an increase in net charge-offs, (ii) loan growth, (iii) deterioration in the economic forecasts used within the CECL model, (iv) a periodic refresh in loss drivers utilized within the CECL model, and (v) an increase in reserves for leases originated by the North Star Leasing division.

During 2024, the provision for credit losses was driven by (i) net charge-offs, (ii) an increase in reserves for individually analyzed loans and leases, (iii) economic forecast deterioration, and (iv) loan growth.

During 2023, the provision for credit losses was driven by (i) the addition of the provision for the loans acquired in the Limestone Merger, (ii) loan growth, and (iii) an increase in net charge-offs, partially offset by a release of reserves on individually analyzed loans and the use of updated loss drivers.

Additional information regarding changes in the allowance for credit losses and loan credit quality can be found later in this discussion under the caption “Allowance for Credit Losses.”

Net Losses Included in Total Non-Interest Income

Net losses include and losses on investment securities, asset disposals and other transactions, which are recognized in total non-interest income.

Net losses include losses on investment securities, asset disposals and other transactions, which are recognized in total non-interest income.

The following table details the net losses for the years ended December 31 recognized by Peoples:

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Net loss on other assets $ (1,231) $ (1,928) $ (1,143)

Net loss on OREO (1,230) (1,623) (139)

Net loss on other real estate owned (821) (1,230) (1,623)

Net loss on other transactions (975) (152) (71)

Net loss on asset disposals and other transactions $ (3,027) $ (3,310) $ (2,837)

For 2024, Peoples’ net loss on investment securities was primarily due to the loss recorded on a contingent call of a security in the second quarter of 2024.

During the first quarter of 2023, Peoples executed sales of $96.7 million of lower yielding available-for-sale investment securities for a pre-tax loss of $2.0 million.

Proceeds from sales were used to pay down overnight borrowings.

During the fourth quarter of 2023, Peoples executed the sales of an additional $36.5 million of lower yielding available-for-sale investment securities for a pre-tax loss of $1.7 million.

Proceeds from the sales were used to purchase higher yielding agency investment securities.

The loss on the sales of these available-for-sale investment securities had a nominal impact on tangible book value as such loss was previously reflected in capital through accumulated other comprehensive loss.

The realized losses recognized in 2023 due to the first quarter transactions were earned back within the 2023 fiscal year, and the realized losses recognized due to the fourth quarter transactions were earned back by December 31, 2024.

Peoples’ net loss on asset disposals and other transactions during 2024 was primarily driven by $1.8 million of net losses on repossessed assets and a $1.2 million write-down of an OREO property.

During 2023, Peoples’ net loss on asset disposals was primarily driven by a $1.6 million write-down of an OREO property and net losses on repossessed assets.

During 2022, net losses on asset disposals and other transactions were primarily driven by losses on repossessed assets.

For 2025, Peoples’ net loss on investment securities was primarily due to the sale of lower yielding available-for-sale securities in the third quarter of 2025.

During 2024, Peoples’ net loss on investment securities was primarily due to the loss recorded on a contingent call of a security in the second quarter of 2024.

Peoples’ net loss on asset disposals and other transactions during 2025 was primarily driven by $1.4 million of net losses on repossessed assets, a $0.9 million loss on the sale of an other real estate owned (“OREO”) property, and a $0.8 million loss on the redemption of subordinated debt.

During both 2024 and 2023, Peoples’ net loss on asset disposals was primarily driven by losses recognized on repossessed assets and write-downs of an OREO property for $1.2 million and $1.6 million, respectively.

Total Non-Interest Income Excluding Net Gains and Losses

Peoples generates total non-interest income excluding net gains and losses from four primary sources:

Peoples generates total non-interest income excluding net gains and losses from five primary sources:

electronic banking income (“e-banking”);

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insurance income;

and deposit account service charges.

deposit account service charges;

and lease income.

Peoples continues to focus on revenue growth from non-interest income sources in order to maintain a diversified revenue stream through greater reliance on total non-interest income excluding net gains and losses.

Total non-interest income excluding net gains and losses accounted for 23.6% of Peoples’ total revenues (defined as net interest income plus total non-interest income excluding net gains and losses) in 2025, compared to 22.8% in 2024 and 21.7% in 2023.

The increase in Peoples’ total non-interest income excluding net gains and losses, as a percent of total revenue during 2024 compared to 2023, was largely due to the growth in lease income, primarily attributable to operating lease income, and growth in trust and investment income, and insurance income.

The increase in Peoples’ total non-interest income excluding net gains and losses, as a percent of total revenue during 2025 compared to 2024, was largely due to the growth in lease income, primarily attributable to operating lease income, and growth in trust and investment income.

E-banking income comprised the largest portion of Peoples’ total non-interest income excluding net gains and losses, for 2025.

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The amount of e-banking income is largely dependent on the timing and volume of customer activity.

For 2024, e-banking income was relatively flat when compared to 2023.

For 2023 compared to 2022, e-banking income increased 20%, primarily due to additional customers from the Limestone Merger as well as organic growth.

For 2025, e-banking income was relatively flat when compared to 2024 and to 2023.

In 2025, Peoples’ customers used their debit cards to complete $2.2 billion of transactions, up from $2.0 billion in 2024 and $1.9 billion in 2023.

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(Dollars in thousands) 2025 2024 2023

Fiduciary $ 8,355 $ 7,537 $ 7,508

Brokerage $ 9,401 $ 8,017 $ 6,865

Fiduciary 8,869 8,355 7,537

Employee benefit plan fees 3,178 3,141 2,758

Trust and investment income $ 21,448 $ 19,513 $ 17,160

For 2024, trust and investment income increased primarily due to increases in fiduciary and brokerage income, primarily reflecting an increase in assets under management and market performance.

For 2023, trust and investment increased compared to

2022 due to increases in brokerage income, as Peoples added new accounts and the underlying market values of assets under administration and management grew, and employee benefit plan fees.

For 2025, trust and investment income increased compared to all prior periods primarily due to increases in brokerage and fiduciary income, as a result of the increase in assets under management.

The following table details Peoples’ assets under administration and management at December 31:

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Annual average $ 3,867,246 $ 3,617,882 $ 3,236,449

The increase in total assets under administration and management at December 31, 2024, compared to December 31, 2023, was primarily due to market value increases in 2024.

During 2023, Peoples’ assets under administration and management increased primarily driven by market performance, new account activity, and an acquisition of an independent financial advisor in January of 2023 which increased brokerage assets by $30 million.

The increase in total assets under administration and management at December 31, 2025, compared to December 31, 2024, was primarily due to growth, as Peoples added new accounts and the underlying market value of assets under management grew in 2025.

During 2024, Peoples’ assets under administration and management increased primarily driven by market value increases.

The following table details Peoples’ insurance income for the years ended December 31:

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Insurance income $ 19,592 $ 19,401 $ 18,016

Insurance income for 2025 increased compared to 2024, primarily driven by higher commissions from clientele added during 2025.

Insurance income for 2024 increased compared to 2023, primarily driven by higher commissions and market increases for premiums.

Peoples Insurance increased its clientele throughout 2024, which drove the increases in commissions.

Insurance income for 2023 increased compared to 2022, primarily due to increases in (i) property and casualty insurance commissions, (ii) performance-based commissions and (iii) life and health insurance commissions.

Deposit account service charges are based on the costs associated with services provided by Peoples.

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Deposit account service charges $ 16,965 $ 17,584 $ 16,682

The amount of deposit account service charges, particularly fees for overdrafts and non-sufficient funds, is largely dependent on the timing and volume of customer activity.

The amount of deposit account service charges, particularly fees for overdrafts and non-sufficient funds (‘NSF”), is largely dependent on the timing and volume of customer activity.

Management periodically evaluates these fees to ensure they are reasonable based on operational costs and similar to fees charged in Peoples’ markets by competitors.

Deposit account service charges in 2025 decreased compared to 2024 due to a decrease in customer activity and a change in the NSF fee structure.

Deposit account service charges in 2024 increased compared to 2023 due to an increase in customer activity.

Deposit account service charges in 2023 increased compared to 2022 due to increased customers added in conjunction with the Limestone Merger, as well as organic growth.

The following table details the other items included within Peoples’ total non-interest income for the years ended December 31:

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Other non-interest income 5,164 4,968 3,793

Lease income is primarily comprised of (i) gains on the early termination of leases, net of any associated purchase accounting adjustments, (ii) month-to-month lease payments in excess of net investment in the lease, (iii) fees received for referrals, (iv) gains and losses recognized on the sales of residual assets, (v) syndication income, and (vi) operating leases.

The increase in lease income for 2024 when compared to 2023 was driven primarily by an increase in operating lease income from Vantage.

The 2023 increase in lease income when compared to 2022 was due month-to-month lease income from Vantage.

Bank owned life insurance income (“BOLI”) for 2024 remained flat when compared to 2023.

BOLI income for 2023 increased when compared to 2022 due to a $0.4 million death benefit related to the cash surrender value of the underlying policy in the fourth

quarter of 2023, and additional income from policies acquired in the Limestone Merger.

Lease income is primarily comprised of (i) operating leases, (ii) month-to-month lease payments in excess of net investment in the lease, (iii) gains on the early termination of leases, net of any associated purchase accounting adjustments, (iv) fees received for referrals, (v) gains and losses recognized on the sales of residual assets, and (vi) syndication income.

The increase in lease income for 2025 when compared to 2024 was driven primarily by an increase in month-to-month lease income and operating lease income from Vantage.

The 2024 increase in lease income when compared to 2023 was driven primarily by an increase in operating lease income from Vantage.

Bank owned life insurance income (“BOLI”) for 2025 increased when compared to 2024 primarily due to changes in the cash surrender value of the underlying policies.

BOLI income for 2024 remained flat when compared to 2023.

Peoples purchased no additional BOLI policies during 2024 or 2025.

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As a result, the amount of income recognized by Peoples is largely dependent on customer demand and long-term interest rates for residential real estate loans offered in the secondary market.

Mortgage banking income increased for 2024 when compared to 2023 primarily driven by higher production.

Mortgage banking income declined for 2023 when compared to 2022 due to lower volumes of new loan originations as a result of the rising market interest rate environment.

Mortgage banking income decreased for 2025 when compared to 2024 primarily driven by the decreased volume in loans sold as more production has been kept on the balance sheet relative to prior periods.

Mortgage banking income increased for 2024 when compared to 2023 driven by higher production.

In 2025, Peoples sold approximately $13.6 million of loans to the secondary market with servicing retained and sold approximately $27.5 million in loans with servicing released, compared to approximately $24.1 million and $40.7 million, respectively, in 2024.

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The volume of sales has a direct impact on the amount of mortgage banking income.

For 2024, other non-interest income increased when compared to 2023 due primarily to increased swap fee income which is driven by customer demand.

Other non-interest income increased during 2023, compared to 2022, primarily due to swap fee income and other operating income.

For 2025, other non-interest income increased when compared to 2024 due primarily to increased swap fee income which is driven by customer demand and increased wire fees.

Other non-interest income increased during 2024, compared to 2023, primarily due to increased swap fee income which is driven by customer demand.

Total Non-Interest Expense

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Average during the period 1,460 1,491 1,411

Base salaries and wages increased for 2024 compared to 2023, driven by an additional four months of salary expense associated with employees added from the Limestone Merger, coupled with annual merit increases.

Base salaries and wages increased in 2023 compared to 2022, driven by the additional salaries associated with the Limestone Merger, including $5.8 million in acquisition-related salary and employee benefit expenses related to the Limestone Merger in 2023.

Base salaries and wages were impacted by merit increases, as well as movement towards a $15 per hour minimum wage throughout Peoples’ organization.

The $15 per hour minimum was phased in and fully implemented by January of 2023.

The decrease in sales-based and incentive compensation for 2024 compared to 2023 was primarily due to the overall company performance measures used in calculating incentive awards.

Sales-based and incentive compensation increased in 2023 compared to 2022, due primarily to the overall company performance measures used in calculating incentive awards and $1.3 million in Vantage-related sales-based and incentive compensation.

Peoples’ sales-based and incentive compensation plans are designed to grow core earnings while managing risk, while not encouraging unnecessary and excessive risk-taking that could threaten the value of Peoples.

Base salaries and wages increased for 2025 compared to 2024, driven by annual merit increases.

Base salaries and wages increased in 2024 compared to 2023, driven by an additional four months of salary expense associated with employees added from the Limestone Merger, coupled with annual merit increases.

The increase in sales-based and incentive compensation for 2025 compared to 2024 was primarily due to higher sales levels and the overall company performance measures used in calculating incentive awards.

Sales-based and incentive compensation decreased in 2024 compared to 2023, due primarily due to the overall company performance measures used in calculating incentive awards.

Peoples’ sales-based and incentive compensation plans are designed to grow core earnings, while not encouraging unnecessary and excessive risk-taking that could threaten the value of Peoples.

The sales-based and incentive compensation plans are designed to reward employees for appropriate behaviors and include provisions addressing inappropriate practices with respect to Peoples and its customers, including clawbacks for executives.

The increase in employee benefit costs for 2024 compared to 2023 was due to increased medical and 401(k) costs reflecting a full year of expenses in 2024 for the additional employees added in the Limestone Merger.

Employee benefit costs in 2023 increased compared to 2022 due to higher medical and 401(k) costs from additional employees added in the Limestone Merger.

Employee stock-based compensation is generally recognized over the vesting period, which generally ranges from immediate vesting to vesting at the end of three years, with an adjustment made at the vesting date to reverse expense for forfeited awards.

The increase in employee benefit costs for 2025 compared to 2024 was mostly due to higher medical costs.

Employee benefit costs in 2024 increased compared to 2023 due to increased medical and 401(k) costs reflecting a full year of expenses in 2024 for the additional employees added in the Limestone Merger.

Employee stock-based compensation is generally recognized over the vesting period, which typically ranges from immediate vesting to vesting at the end of three years, with an adjustment made at the vesting date to reverse expense for forfeited awards.

The majority of Peoples’ stock-based compensation is attributable to annual equity-based incentive awards to employees, which are awarded in the first quarter and based upon Peoples achieving certain performance goals during the prior year.

During the years presented in the table above, Peoples granted restricted common shares to officers and key employees with performance-based vesting periods and time-based vesting periods, generally with a three-year cliff vesting.

Employee stock-based compensation for 2024 increased when compared to 2023 due to additional employees primarily as a result of the full year impact from the Limestone Merger.

Employee stock-based compensation increased for 2023 compared to 2022 due to additional employees primarily as a result of the Limestone Merger, as well as a full year with Vantage employees.

Employee stock-based compensation for 2025 decreased when compared to 2024 due to less up-front expense on stock grants to certain retirement-eligible employees.

Employee stock-based compensation increased for 2024 compared to 2023 due to additional employees primarily as a result of the full year impact from the Limestone Merger.

Deferred personnel costs represent the portion of current period salaries and employee benefit costs considered to be direct loan origination costs.

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As a result, the amount of deferred personnel costs for each period corresponds directly with the volume of loan originations, coupled with the average deferred costs per loan that are updated annually at the beginning of each year.

Deferred personnel costs in 2024 increased compared to 2023, primarily due to an increase in business loan origination volume.

Lower deferred personnel costs in 2023 compared to 2022 were primarily due to an decrease in loan origination volume.

Deferred personnel costs in 2025 increased compared to 2024 and 2023, primarily due to an increase in loan origination volume.

Additional information regarding Peoples’ loan activity can be found later in this discussion under the caption “Loans” within “FINANCIAL CONDITION.”

For 2024, payroll taxes and other employment costs increased compared to 2023, primarily due to the employees added from the Limestone Merger coupled with annual merit increases.

Payroll taxes and other employee costs increased during 2023 compared to 2022, primarily due to the employees added from the Limestone Merger.

For 2025, payroll taxes and other employment costs increased compared to 2024, primarily due to annual merit increases.

Payroll taxes and other employee costs increased during 2024 compared to 2023, primarily due to the employees added from the Limestone Merger coupled with annual merit increases.

Peoples’ net occupancy and equipment expense for the years ended December 31 was comprised of the following:

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Net occupancy and equipment expense $ 23,178 $ 24,151 $ 21,368

For 2024, net occupancy and equipment expense increased when compared to 2023 due to the full year impact of the Limestone Merger and a prior period one-time benefit to rent expense in 2023.

Net occupancy and equipment expense grew during 2023 when compared to 2022 due to the additional locations and equipment added in the Limestone Merger.

For 2025, net occupancy and equipment expense decreased when compared to 2024 due to an adjustment of property tax accruals resulting from a review of recent assessments.

Net occupancy and equipment expense was higher during 2024 when compared to 2023 due to the full year impact of the Limestone Merger and a prior period one-time benefit to rent expense in 2023.

The following table details the other items included within Peoples’ total non-interest expense for the years ended December 31:

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Data processing and software expense includes software support, maintenance and depreciation expense.

Data processing and software expense for 2024 increased relative to 2023, driven by software upgrades and implementation of new systems, coupled with the increased size of Peoples’ organization as a result of the Limestone Merger.

During 2023, data processing and software expense grew when compared to 2022 was driven by (i) software upgrades, (ii) implementation of new systems, (iii) growth from the Limestone Merger, and (iv) $1.9 million in acquisition-related expenses related to the Limestone Merger.

Professional fees decreased for 2024 when compared to 2023, primarily driven by a $6.0 million decrease in acquisition-related expenses, due to expenses related to the Limestone Merger in 2023.

Professional fees during 2023 increased when compared 2022, primarily driven by a $3.7 million increase in acquisition-related expenses, due to increased expenses related to the Limestone Merger in 2023.

Amortization of other intangible assets remained relatively flat for 2024 when compared to 2023.

During 2023, amortization of other intangible assets increased when compared to 2022 due to the increased intangible assets recognized as a result of the Limestone Merger.

Data processing and software expense for 2025 increased relative to 2024, driven by costs associated with recent technology projects.

During 2024, data processing and software expense increased when compared to 2023, driven by software upgrades and implementation of new systems, coupled with the increased size of Peoples’ organization as a result of the Limestone Merger.

Professional fees increased for 2025 when compared to 2024, primarily driven by higher exam and audit fees coupled with higher legal expense.

Professional fees during 2024 decreased when compared to 2023, primarily driven by a $6.0 million decrease in acquisition-related expenses, related to the Limestone Merger in 2023.

Amortization of other intangible assets decreased for 2025 when compared to 2024 due to decreases in amortization on core deposits and customer relationship intangibles.

Amortization of other intangible assets for 2024 remained relatively flat when compared to 2023.

Peoples’ e-banking expense is comprised of costs associated with debit and ATM cards, as well as internet and mobile banking costs.

E-banking expense increased for 2024 when compared to 2023 due to increased processing fees.

E-banking expense decreased for 2023 when compared to 2022 due to decreased costs for Peoples’ online banking platform.

Marketing expense, which includes advertising, donations, marketing campaigns, and other public relations costs, for 2024 decreased when compared to 2023, primarily driven by decreased advertising expense.

Marketing expense increased for 2023 compared to 2022, which was driven by increased marketing related to the Limestone Merger, an increase in donations, and a full year of expenses from Vantage.

FDIC insurance premiums for 2024 increased when compared to 2023 due to organic growth.

FDIC insurance expense increased during 2023 compared to 2022 due to organic and acquisitive growth, in addition to an increase in rates assessed by the FDIC.

E-banking expense increased for 2025 when compared to 2024 and to 2023 due to increased processing fees.

FDIC insurance premiums for 2025 increased when compared to 2024 due to the increase in assets, driven by loan growth.

FDIC insurance expense increased during 2024 compared to 2023 due to assets acquired in the Limestone Merger.

The FDIC quarterly assessment rate is applied to average total assets less average tangible equity, and is based on the leverage ratio, net income before taxes, nonperforming loans as a percent of total assets, OREO, loan mix and asset growth.

Additional information regarding Peoples’ FDIC insurance assessments may be found in “ITEM 1 BUSINESS” of this Form 10-K in the section captioned “Supervision and Regulation.”

Other loan expenses during 2025 increased when compared to 2024 primarily due to the increase in Down Payment Assistance Program expenses.

Other loan expenses increased in 2024 compared to 2023, primarily due to increases in collection and underwriting costs.

Marketing expense, which includes advertising, donations, marketing campaigns, and other public relations costs, for 2025 decreased when compared to all prior periods, primarily driven by lower advertising expense.

Peoples is subject to state franchise taxes, which are based largely on Peoples’ equity at year-end, in the states where Peoples has a physical presence.

Franchise tax expense also includes the Ohio Financial Institution Tax (“FIT”), which is a business privilege tax that is imposed on financial institutions organized for profit and doing business in Ohio.

Franchise tax expense decreased for 2024 when compared to 2023 primarily driven by the Ohio FIT, which decreased due to lower apportionment in the state.

Franchise tax expense increased for 2025

when compared to 2024 primarily driven by the Ohio FIT.

The Ohio FIT is based on the total equity capital in proportion to the taxpayer’s gross receipts in Ohio.

Franchise tax expense was relatively flat in 2023 compared to 2022.

Other loan expenses during 2024 increased when compared to 2023 primarily due to increases in collection and underwriting costs.

Other loans expenses increased in 2023 compared to 2022, primarily due to Limestone-related expenses and increases in business loan expenses and credit bureau expenses.

Communications expense increased during 2024 when compared to 2023 and increased during 2023 when compared to 2022, in each case due to upgraded networking to certain branches (including new branches acquired in acquisitions and mergers) and increased costs compared to the prior period among certain vendors that provide communication services.

Other non-interest expense for 2024 decreased when compared to 2023 due to higher acquisition costs and pension expense in the prior year of $2.5 million and $2.1 million, respectively, both of which were partially offset by an increase in miscellaneous expenses of $1.9 million, which was primarily attributable to one-time corporate expenses.

Other non-interest expense increased for 2023 when compared to 2022, primarily due to $2.8 million in additional acquisition-related expenses related to the Limestone Merger and a $2.4 million settlement charge in relation to the termination of the pension plan.

Franchise tax expense decreased in 2024 compared to 2023 primarily driven by the Ohio FIT, which decreased due to lower apportionment in the state.

Communications expense decreased during 2025 when compared to 2024 due to upgrades that were implemented in the prior year.

Communications expense increased during 2024 when compared to 2023, due to upgraded networking at certain branches (including new branches acquired in acquisitions and mergers) and increased costs compared to the prior period among certain vendors that provide communication services.

Operating lease expense increased in all years presented due to an increase in the volume of leases originated.

Travel and entertainment expense remained flat compared to 2024 and 2023.

Travel and entertainment expense varies between periods due to the seasonality of travel.

Other non-interest expense for 2025 decreased when compared to 2024 due to lower corporate expenses.

Other non-interest expense decreased for 2024 when compared to 2023, primarily due to higher acquisition costs and pension expense in the prior year of $2.5 million and $2.1 million, respectively, both of which were partially offset by an increase in miscellaneous expenses of $1.9 million for 2024, which was primarily attributable to one-time corporate expenses.

Income Tax Expense

A key driver for the amount of income tax expense or benefit recognized by Peoples each year is the amount of pre-tax income.

In addition to the expense recognized, Peoples receives tax benefits from tax-exempt investments and loans, BOLI income, common share awards that settled or vested during the year, and investments in tax credit funds, which reduce Peoples’ effective tax rate.

A reconciliation of Peoples’ recorded income tax expense/benefit and effective tax rate to the statutory tax rate can be found in “Note 13 Income Taxes.”

For the full year of 2024, income tax expense totaled $32.3 million, compared to $31.8 million in 2023, and $27.3 million in 2022, and the effective tax rate for 2024 was 21.6%, compared to 21.9% for 2023, and 21.3% for 2022.

Income tax was positively impacted by a $1.1 million one-time benefit recognized in 2024 related to a prior year amended return.

Income tax expense increased during 2023 when compared to 2022, which was driven by higher pre-tax income.

A key driver for the amount of income tax expense recognized by Peoples each year is the amount of pre-tax income.

In addition to the expense recognized, Peoples receives tax benefits from tax-exempt investments and loans, BOLI income, common share awards that settled or vested during the year, investments in tax credit funds, and transferrable tax credits, which reduce Peoples’ effective tax rate.

A reconciliation of Peoples’ recorded income tax expense and effective tax rate to the statutory tax rate can be found in “Note 13 Income Taxes.”

For the full year of 2025, income tax expense totaled $28.0 million, compared to $32.3 million in 2024, and $31.8 million in 2023, and the effective tax rate was 20.8% for 2025, compared to 21.6% for 2024, and 21.9% for 2023.

The decrease in income tax expense and the effective tax rate when compared to the prior years was impacted by updates to state tax rates driven by apportionment, reducing tax expense in 2025 by $0.9 million and a $0.7 million benefit relating to tax credits purchased in the fourth quarter of 2025.

Income tax for 2024 was positively impacted by a $1.1 million one-time benefit recognized in 2024 related to a prior year amended return.

Peoples also recorded a tax benefit of $169,000 in 2025, $48,000 in 2024, and $128,000 in 2023 related to common share awards that settled or vested during the year, with the substantial majority recorded in the first quarter of each year.

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net loss on other transactions 975 152 71

recovery of credit losses — — 3,510

Pre-provision net revenue $ 182,657 $ 177,977 $ 166,837

PPNR increased in 2024 when compared to 2023 mostly due to increased net interest income and increased non-interest income driven by higher rates and the additional four months of income from the Limestone Merger.

During 2023, PPNR grew when compared to 2022 mostly due to (i) the impact of the Limestone Merger in improving net interest income, (ii) increases in market interest rates, and (iii) higher non-interest income.

Core Non-Interest Expense (non-US GAAP)

Core non-interest expense is a financial measure used to evaluate Peoples’ recurring expense stream.

This measure is a non-US GAAP financial measure since it excludes the impact of all COVID-19-related expenses, pension settlement charges, and acquisition-related expenses.

The following table provides a reconciliation of this non-US GAAP financial measure to the amounts of total non-interest expense reported in Peoples’ Consolidated Financial Statements for the years presented:

(Dollars in thousands) 2024 2023 2022

Core non-interest expense:

Total non-interest expense $ 273,816 $ 266,487 $ 207,147

COVID-19-related expenses — — 134

pension settlement charges — 2,424 185

acquisition-related expenses 169 16,970 3,016

COVID-19 Employee Retention Credit — 548 —

Core non-interest expense $ 273,647 $ 247,641 $ 203,812

PPNR increased in 2025 when compared to 2024 mostly due to lower borrowing costs and an increase in non-interest income, driven by lease income.

During 2024, PPNR increased when compared to 2023 mostly due to increased net interest income and increased non-interest income driven by higher rates and the additional four months of income from the Limestone Merger.

Efficiency Ratio (non-US GAAP)

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Efficiency ratio 58.68 % 57.97 % 58.70 %

Efficiency ratio adjusted for non-core items:

Core non-interest expense $ 273,647 $ 247,641 $ 203,812

amortization of other intangible assets 11,161 11,222 7,763

Adjusted core non-interest expense 262,486 236,419 196,049

Core non-interest income excluding net gains and losses 103,092 93,950 79,513

Net interest income on a fully-tax-equivalent basis 350,009 341,077 255,086

Adjusted core revenue $ 453,101 $ 435,027 $ 334,599

Efficiency ratio adjusted for non-core items 57.93 % 54.35 % 58.59 %

(a) Based on 21% statutory federal corporate income tax rate.

The efficiency ratio for 2024 improved when compared to 2023 due to increased revenue.

The increase in the efficiency ratio, adjusted for non-core items for 2024 when compared to 2023 was due to higher non-interest expense.

The efficiency ratio and the efficiency ratio adjusted for non-core items for 2023 improved when compared to 2022, due to higher net interest income driven by the Limestone Merger, increases in market interest rates, and higher non-interest income.

The efficiency ratio for 2025 increased when compared to 2024 due to the increase in non-interest expense.

Managing expenses has been a major focus over recent years;

however, during this time Peoples has continued to make meaningful investments in its infrastructure and systems.

Peoples was primarily impacted in 2024 by the competition for deposits impacting funding costs;

whereas, 2023 and 2022 net interest income was positively impacted by rising market interest rate environment.

Peoples was primarily impacted in 2024 by the competition for deposits impacting funding costs, and in 2023 net interest income was positively impacted by a rising market interest rate environment.

Return on Average Assets Adjusted for Non-Core Items (non-US GAAP)

6 unchanged sentences

net loss on investment securities

2,659 428 3,700

tax effect of net loss on investment securities (a)

net gain on investment securities

tax effect of net gain on investment securities (a)

net loss on asset disposals and other transactions

2 unchanged sentences

acquisition-related expenses

169 16,970 3,016

tax effect of acquisition-related expenses (a)

1 unchanged sentence

tax effect of pension settlement charges (a)

COVID-19-related expenses — — 134

tax effect of COVID-19-related expenses (a) — — 28

Net income adjusted for non-core items (after tax) $ 111,270 $ 120,283 $ 133,848

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(a) Based on a 21% statutory federal corporate income tax rate.

The decrease in the return on average assets for 2024 compared to 2023 was primarily driven by the assets acquired in the Limestone Merger.

The decrease in return on average assets adjusted for non-core items for 2024 compared to 2023 was primarily driven by higher non-interest expense, and the assets acquired in the Limestone Merger.

The decrease in the return on average assets for 2023 compared to 2022 was attributable to a greater impact from non-core items, primarily due to (i) an increase in net acquisition-related expenses as a result of the Limestone Merger, (ii) higher net losses on investment securities and asset disposals and other transactions, and (iii) pension settlement charges of $2.4 million in relation to the termination of the pension plan.

The decrease in the return on average assets and the return on average assets adjusted for non-core items for 2025 when compared to 2024 was primarily driven by an increase in average assets, driven by loan growth, and a decrease in net income from an increase in provision for credit losses.

The decrease in the return on average assets and return on average assets adjusted for non-core items for 2024 compared to 2023 was driven by the assets acquired in the Limestone Merger.

Return on Average Tangible Equity (non-US GAAP)

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(a) Based on a 21% statutory federal corporate income tax rate.

The return on total average stockholders’ equity and average tangible equity ratios decreased in 2024 when compared to 2023, due to higher average stockholders’ equity driven by the full year impact of the Limestone Merger.

Return on total average stockholders’ equity and average tangible equity ratios were lower in 2023 relative to 2022 due to (i) the issuance of 6.8 million common shares as consideration in the Limestone Merger, (ii) an increase in acquisition-related expenses, and (iii) an increase in the provision for credit losses due to the initial provision for the non-purchase credit deteriorated (“PCD”) loans acquired from Limestone, partially offset by an increase in total net interest income driven by the recent increases in market interest rates and additional net interest income resulting from the Limestone Merger.

The return on total average stockholders’ equity and average tangible equity ratios decreased in 2025 when compared to 2024, primarily driven by an increase in average stockholders’ equity.

Return on total average stockholders’ equity and average tangible equity ratios were lower in 2024 relative to 2023 due to higher average stockholders’ equity driven by the full year impact of the Limestone Merger.

At the same time, average tangible equity for 2023 was negatively impacted by the Limestone Merger, for which Peoples recorded additional goodwill and other intangible assets.

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The amount of excess cash reserves maintained is dependent upon Peoples’ daily liquidity position, which is driven primarily by changes in deposits, loan balances and unpledged securities.

In 2025, Peoples’ total cash and cash equivalents decreased $28.7 million, due to cash used in investing activities of $424.4 million, which was partially offset by cash provided by financing activities of $261.0 million and operating activities of $134.7 million.

Peoples’ investing activities reflected a net increase of $418.2 million in loans held for investment and $425.3 million in purchases of available-for-sale investment securities and held-to-maturity investment securities.

These increases were partially offset by $427.9 million in net proceeds from sales, principal payments, calls and prepayments on available-for-sale and held-to-maturity investment securities.

Cash provided by financing activities was primarily driven by an increase in overnight borrowings with the FHLB of $190.0 million.

In 2024, Peoples’ total cash and cash equivalents decreased $209.1 million, due to cash used in investing activities of $344.3 million and financing activities of $7.9 million, which were partially offset by cash provided by operating activities of $143.2 million.

Peoples’ investing activities reflected a net increase of $199.2 million in loans held for investment and $584.8 million in purchases of available-for-sale investment securities and held-to-maturity investment securities, which were partially offset by $446.6 million in net proceeds from sales, principal payments, calls and prepayments on available-for-sale and held-to-maturity investment securities.

Financing activities included a net increase of $437.7 million in deposits, a decrease of $457.0 million in short-term borrowings, a net increase of $20.6 million in long-term borrowings, as well as $55.8 million of cash dividends paid.

In 2023, Peoples’ total cash and cash equivalents increased $272.7 million, due to cash provided by financing activities of $262.0 million and cash provided by operating activities of $143.6 million, partially offset by cash used in investing activities of $132.9 million.

Peoples’ investing activities reflected a net increase of $356.1 million in loans held for investment and $282.8 million in purchases of available-for-sale investment securities and held-to-maturity investment securities, which were more than offset by $434.1 million in net proceeds from sales, principal payments, calls and prepayments on available-for-sale and held-to-maturity investment securities.

Financing activities included a net increase of $201.4 million in deposits, an increase of $41.0 million in short-term borrowings, a net increase of $74.9 million in long-term borrowings, as well as $51.8 million of cash dividends paid.

Peoples’ investing activities reflected a net increase of $199.2 million in loans held for investment and $584.8 million in purchases of

available-for-sale investment securities and held-to-maturity investment securities, which were partially offset by $446.6 million in net

proceeds from sales, principal payments, calls and prepayments on available-for-sale and held-to-maturity investment securities.

Financing activities included a net increase of $487.1 million in deposits, a decrease of $457.0 million in short-term borrowings, a net

increase of $20.6 million in long-term borrowings, as well as $56.3 million of cash dividends paid.

Further information regarding the management of Peoples’ liquidity position can be found later in this discussion under “Interest Rate Sensitivity and Liquidity.”

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At December 31, 2025, Peoples’ investment securities represented approximately 20.5% of total assets, compared to 20.7% at December 31, 2024.

For 2024, total investment securities increased compared to the prior year, largely due to purchases of higher yielding, longer duration securities designated as held-to-maturity.

During 2023, total investment securities increased compared to the prior year, largely due to purchases of held-to-maturity securities, partially offset by available-for-sale securities sold, both of which were part of portfolio restructurings throughout 2023.

During the first quarter of 2023, Peoples executed the sales of $96.7 million of its lower yielding available-for-sale investment securities for an after-tax loss of $1.6 million.

Proceeds from the sales were used to pay down overnight borrowings.

During the fourth quarter of 2023, Peoples executed the sales of an additional $36.5 million of its lower yielding available-for-sale investment securities for an after-tax loss of $1.3 million.

Proceeds from the sales were used to purchase higher yielding agency investment securities.

For 2025 and 2024, total investment securities increased compared to the prior year, largely due to purchases of higher yielding, longer duration securities designated as held-to-maturity.

During the third quarter of 2025, Peoples executed the sale of $75.0 million of available-for-sale securities for an after-tax loss of $2.7 million.

Proceeds were used to reinvest in higher yielding agency securities and to pay down higher cost liabilities.

During the first quarter of 2023, Peoples executed the sale of $96.7 million of its lower yielding available-for-sale investment securities for an after-tax loss of $1.6 million.

Proceeds from the sale were used to pay down overnight borrowings.

During the fourth quarter of 2023, Peoples executed the sale of an additional $36.5 million of its lower yielding available-for-sale investment securities for an after-tax loss of $1.3 million.

Proceeds from the sale were used to purchase higher yielding agency investment securities.

Peoples designates certain securities as “held-to-maturity” at the time of their purchase if management determines Peoples would have the intent and ability to hold the purchased securities until maturity.

50 unchanged sentences

(b) NM represents “not meaningful.”

As of December 31, 2024, total loans increased $198.8 million, compared to at December 31, 2023, due to organic growth in our commercial and industrial and premium finance portfolios which increased by $162.7 million and $66.3 million, respectively, and were partially offset by a decrease in commercial real estate loans of $40.9 million.

As of December 31, 2023, total loans increased $1.5 billion, compared to at December 31, 2022, primarily due to the Limestone Merger.

Excluding the loans acquired in the Limestone Merger, the period-end loan and lease balance increased $472.2 million, or 10%, driven by increases of $203.6 million in other commercial real estate loans, $78.2 million in commercial and industrial loans, $68.9 million in leases, $44.0 million in premium finance loans, $37.9 million in construction loans, and $37.0 million in indirect consumer loans, respectively.

As of December 31, 2025, total loans increased $398.9 million, compared to at December 31, 2024, due to growth in other commercial real estate loans, commercial and industrial loans, and indirect consumer loans of $208.0 million, $188.1 million, and $30.7 million, respectively, and were partially offset by a decrease in leases of $40.9 million.

As of December 31, 2024, total loans increased $198.8 million, compared to at December 31, 2023, primarily due to organic growth in our commercial and industrial and premium finance portfolios which increased by $162.7 million and $66.3 million, respectively, and were partially offset by a decrease in commercial real estate loans of $40.9 million.

The following table details the maturities of Peoples’ loan portfolio at December 31, 2025:

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Land development 33,049 50,581 83,630 13.2 %

Residential property 30,573 19,693 50,266 7.4 %

Land only 13,104 29,594 42,698 6.7 %

Lodging and lodging related 10,313 13,916 24,229 3.6 %

Assisted living facilities and nursing homes 6,567 16,972 23,539 3.5 %

Industrial 21,360 18,783 40,143 6.3 %

Residential property 8,151 17,454 25,605 4.0 %

Storage facilities 9,771 8,390 18,161 2.9 %

Warehouse facilities 7,137 8,499 15,636 2.5 %

Student housing 15,000 — 15,000 2.4 %

Retail 4,818 7,858 12,676 2.0 %

Other (a) 35,886 26,093 61,979 9.8 %

2 unchanged sentences

Apartment complexes 501,055 11,575 512,630 21.1 %

Industrial facilities:

Owner occupied 124,149 2,786 126,935 5.2 %

Non-owner occupied 121,287 5,362 126,649 5.2 %

Total light industrial facilities 245,436 8,148 253,584 10.4 %

Retail facilities:

2 unchanged sentences

Total retail 251,135 2,284 253,419 10.4 %

Light industrial facilities:

Lodging and lodging related:

Owner occupied 29,210 — 29,210 1.2 %

Non-owner occupied 162,787 6,499 169,286 7.0 %

Total light industrial facilities 250,737 10,607 261,344 11.7 %

Total lodging and lodging related 191,997 6,499 198,496 8.2 %

Office buildings and complexes:

2 unchanged sentences

Total office buildings and complexes 178,034 3,316 181,350 7.5 %

Lodging and lodging related:

Owner occupied 30,407 — 30,407 1.4 %

Non-owner occupied 121,443 1 121,444 5.5 %

Total lodging and lodging related 151,850 1 151,851 6.9 %

Assisted living facilities and nursing homes 145,236 1,126 146,362 6.0 %

7 unchanged sentences

Total restaurant/bar facilities 81,277 — 81,277 3.4 %

Owner occupied 40,109 127 40,236 1.8 %

Non-owner occupied 15,241 583 15,824 0.7 %

Total healthcare facilities 55,350 710 56,060 2.5 %

Mixed commercial use facilities:

2 unchanged sentences

Total mixed commercial use facilities 71,960 2,686 74,646 3.0 %

Owner occupied 41,743 193 41,936 1.7 %

Non-owner occupied 9,557 1,240 10,797 0.4 %

Total healthcare facilities 51,300 1,433 52,733 2.1 %

Other (a) 547,401 23,975 571,376 23.7 %

22 unchanged sentences

As a percent of total loans 1.12 % 1.00 % 1.01 %

The increase in the allowance balance at December 31, 2025, when compared to at December 31, 2024, was driven by (i) loan growth, (ii) deterioration in the economic forecasts used within the CECL model, (iii) a periodic refresh in the loss drivers utilized within the CECL model, (iv) an increase in reserves for leases originated by the North Star Leasing division, and (v) an increase in individually analyzed loans and leases.

The increase in the allowance balance at December 31, 2024, when compared to at December 31, 2023, was driven by an increase in reserves for individually analyzed loans and leases, as well as loan growth.

The increase in the allowance balance at December 31, 2023 when compared to at December 31, 2022 was driven by (i) the additional allowance related to the loans acquired in the Limestone Merger, (ii) loan growth and (iii) an increase in charge-offs, partially offset by a release of reserves on individually analyzed loans and the use of updated loss drivers.

Additional information regarding Peoples’ allowance for credit losses can be found in “Note 1 Summary of Significant Accounting Policies” and “Note 4 Loans and Leases, and Allowance for Credit Losses.”

15 unchanged sentences

Total gross charge-offs 32,821 25,112 11,480

Construction 25 — —

Commercial real estate, other 64 127 965

22 unchanged sentences

Total net charge-offs $ 29,353 $ 23,223 $ 8,547

Provision for (recovery of) credit losses, December 31 (a) 24,560 15,345 (2,904)

Provision for credit losses, December 31 (a) 41,681 24,560 15,345

Initial allowance for PCD assets $ — $ — $ 2,051

15 unchanged sentences

Net charge-offs as a percent of average total loans for 2025 increased to 0.45% compared to 0.37% at 2024.

The increase over all periods presented was due to an increase in charge-offs on small-ticket leases that occurred during the second half of 2024.

During 2023, net charge-offs as a percent of average total loans decreased to 0.15%, compared to 0.16% for 2022.

The decrease was due to (i) an increase in average loan balances, primarily driven by the loans acquired in the Limestone Merger, (ii) decreases in net charge-offs of residential real estate loan balances and commercial and industrial loan balances, and (iii) net recoveries in 2023 compared to net charge-offs in 2022 of other commercial real estate loan balances, mostly offset by increases in net charge-offs related to total consumer loan balances and lease balances.

The increase over all periods presented was due to an increase in charge-offs on small-ticket leases.

During 2024, net charge-offs as a percent of average total loans increased to 0.37%, compared to 0.15% for 2023.

The increase was due to an increase in charge-offs on small-ticket leases that occurred during the second half of 2024.

The following table details Peoples’ nonperforming assets at December 31:

12 unchanged sentences

Nonaccrual loans:

Construction — — 12

Commercial real estate, other 4,056 7,136 2,816

Commercial and industrial 8,045 6,809 2,758

Premium Finance 573 — —

Leases 11,063 8,850 8,436

21 unchanged sentences

Classified loans as a percent of total loans (b)(c) 2.18 % 2.03 % 1.95 %

(a) Includes loans categorized as special mention, substandard or doubtful.

(b) Includes loans categorized as substandard or doubtful.

(a) Includes loans categorized as special mention, substandard, doubtful, or loss.

(b) Includes loans categorized as substandard, doubtful, or loss.

1 unchanged sentence

Nonperforming assets include nonperforming loans and OREO.

Peoples’ NPAs increased to 0.53% of total assets at December 31, 2024, compared to 0.43% of total assets at December 31, 2023.

This was driven by an increase in nonaccrual balances for commercial real estate and commercial and industrial loans, partially offset by a decrease in commercial OREO.

Loans 90+ days past due and accruing at December 31, 2024 increased compared to at December 31, 2023, driven by higher administrative delinquencies on premium finance loans.

Peoples’ NPAs decreased to 0.45% of total assets at December 31, 2025, compared to 0.53% of total assets at December 31, 2024.

This was driven by the sale of an OREO property in the fourth quarter of 2025.

Loans 90+ days past due and accruing at December 31, 2025, decreased compared to at December 31, 2024, driven by payoffs on premium finance loans and Vantage leases.

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

During 2025, criticized loans decreased due to paydowns and loan upgrades while classified loans increased due to downgrades.

Nonperforming assets increased to 0.53% of total assets at December 31, 2024, compared to 0.43% of total assets at December 31, 2023.

This was driven by an increase in nonaccrual balances for other commercial real estate and commercial and industrial loans, partially offset by a decrease in commercial OREO.

Loans 90+ days past due and accruing at December 31, 2024, increased compared to at December 31, 2023, driven by higher administrative delinquencies on premium finance loans.

During 2024, both criticized and classified loans increased when compared to 2023, primarily due to loan downgrades.

Nonperforming assets decreased to 0.43% of total assets at December 31, 2023 compared to 0.63% of total assets at December 31, 2022.

Loans 90+ days past due and accruing at December 31, 2023 increased compared to at December 31, 2022, primarily due to the

loans acquired in the Limestone Merger and an increase in leases and premium finance loans 90+ days past due and accruing.

During 2023, both criticized and classified loans increased when compared to 2022, primarily due to criticized and classified loans acquired in the Limestone Merger.

The majority of Peoples’ nonaccrual commercial real estate loans consists of owner occupied commercial properties.

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(a) The sum of amounts presented are considered total demand deposits.

The increase in total deposits between December 31, 2025, and December 31, 2024, was primarily driven by increases in money market deposit accounts, retail CDs, driven by special promotional rate offerings over the past year, and non-interest bearing deposits, partially offset by a decrease in brokered deposits due to a strategic shift to other funding sources at lower rates.

Total demand deposits comprised 35% and 34% of total deposits at December 31, 2025, and at December 31, 2024, respectively.

The increase in total deposits between December 31, 2024, and December 31, 2023, was primarily driven by special promotional rates over the past year on retail CDs.

Total demand deposits comprised 34% and 38% of total deposits at December 31, 2024, and at December 31, 2023, respectively.

The increase in total deposits between December 31, 2023 and December 31, 2022 was primarily due to deposits acquired in the Limestone Merger.

Excluding Limestone deposit balances, total deposits at December 31, 2023 increased $565.9 million, or 10%, compared to at December 31, 2022, primarily due to increases of $785.6 million in retail CDs and $351.1 million in brokered deposits, partially offset by decreases of $226.8 million, $223.3 million, and $193.7 million, in non-interest bearing deposits, savings accounts, and interest-bearing demand deposit accounts, respectively.

Total demand deposits comprised 38% and 48% of total deposits at December 31, 2023 and December 31, 2022, respectively.

As part of its funding strategy, Peoples hedges 90-day brokered deposits with interest rate swaps.

The swaps pay a fixed rate of interest while receiving three-month SOFR, which offsets the rate on the brokered deposits.

As of December 31, 2024, Peoples had eight effective interest rate swaps, with an aggregate notional value of $75.0 million, which were designated as cash flow hedges of brokered deposits, and are expected to be extended every 90 days through the maturity dates of the swaps.

As of December 31, 2025, Peoples had five effective interest rate swaps, with an aggregate notional value of $45.0 million, which were designated as cash flow hedges of brokered deposits, and are expected to be extended every 90 days through the maturity dates of the swaps.

Peoples continually evaluates the overall balance sheet position given the interest rate environment.

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Other long-term borrowings include trust preferred securities held for investments and floating rate subordinated deferrable interest debentures.

During 2025, Peoples redeemed early $25.0 million of subordinated debt it had acquired through a previous merger, which drove the decline in other long-term borrowings.

Peoples continually evaluates its overall balance sheet position given the interest rate environment and liquidity needs.

Total borrowed funds decreased at December 31, 2024 compared to at December 31, 2023 due to lower FHLB overnight borrowings and the payoff of the BTFP borrowing as of December 31, 2024.

Peoples’ borrowed funds increased at December 31, 2023 compared to at December 31, 2022 due to the addition of $133.0 million of BTFP borrowings at December 31, 2023, an increase in FHLB long-term advances, and an increase in other long-term borrowings assumed in the Limestone Merger.

Total borrowed funds increased at December 31, 2025, compared to at December 31, 2024, due to higher FHLB overnight borrowings and higher other short-term borrowings.

Peoples’ borrowed funds decreased at December 31, 2024, compared to at December 31, 2023, due to lower FHLB overnight borrowings and the payoff of the BTFP borrowing as of December 31, 2024.

On April 3, 2019, Peoples entered into the U.S.

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Bank Loan Agreement provides Peoples with a revolving line of credit in the maximum aggregate principal amount of $30.0 million.

There were no amounts drawn on the line of credit as of December 31, 2025.

Additional information regarding Peoples’ borrowed funds can be found in “Note 9 Short-Term Borrowings” and “Note 10 Long-Term Borrowings.”

Capital/Stockholders’ Equity

Peoples’ total stockholders’ equity at December 31, 2024 increased $58.1 million, or 6%, when compared to at December 31, 2023, which was due to net income of $117.2 million for 2024, partially offset by an increase in other comprehensive loss of $8.8 million and dividends paid of $56.3 million.

The increase in other comprehensive loss was the result of changes in the fair market value of available-for-sale investment securities, which were driven by changes in market interest rates.

Peoples’ total stockholders’ equity at December 31, 2025, increased $95.0 million, or 9%, when compared to at December 31, 2024, which was due to net income of $106.8 million for 2025 and a decrease in other comprehensive loss of $39.8 million, partially offset by dividends paid of $58.1 million.

The decrease in other comprehensive loss was the result of changes in the fair market value of available-for-sale investment securities, which were driven by changes in market interest rates.

At December 31, 2025, capital levels for both Peoples and Peoples Bank remained substantially higher than the minimum amounts needed to be considered “well capitalized” under banking regulations.

These higher capital levels reflect Peoples’ desire to maintain a strong capital position.

During 2023, total stockholders’ equity increased 34% when compared to 2022 due to (i) 6.8 million common shares (valued at $177.9 million) issued in the Limestone Merger, (ii) net income of $113.4 million for 2023, and (iii) a decrease in other comprehensive loss of $25.5 million, partially offset by dividends paid of $52.1 million and share repurchases of $3.0 million.

decrease in other comprehensive loss was the result of changes in the fair market value of available-for-sale investment securities, which were driven by changes in market interest rates.

During 2024, total stockholders’ equity increased $58.1 million, or 6% ,when compared to at 2023 due to net income of $117.2 million for 2024, partially offset by an increase in other comprehensive loss of $8.8 million and dividends paid of $56.3 million.

increase in other comprehensive loss was the result of changes in the fair market value of available-for-sale investment securities, which were driven by changes in market interest rates.

On January 1, 2020, Peoples recorded a one-time transition adjustment to reduce retained earnings by $3.7 million.

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Peoples elected to utilize the five-year phase-in period for the transition adjustment due to the implementation of ASU 2016-13.

This phase-in period also includes a 25% deferment of the impact on regulatory capital of the estimated increase in the allowance for credit losses related to the CECL model, which was applied during the first two years of application.

This phase-in period also included a 25% deferment of the impact on regulatory capital of the estimated increase in the allowance for credit losses related to the adoption of CECL, which was applied during the first two years of application.

For the first two years of the phase-in period, 100% of the transition adjustment due to ASU 2016-13 was excluded for regulatory capital purposes, along with 25% of the increase in the allowance for credit losses compared to the January 1, 2020 allowance for credit losses.

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Tangible equity to tangible assets 8.79 % 8.01 % 7.33 %

Tangible book value per common share increased to $19.94 at December 31, 2024 from $18.16 at December 31, 2023 and was primarily due to net income over the last twelve months.

The increase in tangible book value per common share at December 31, 2023 from at December 31, 2022 was due to tangible equity increasing as a result of common shares issued throughout 2023, including shares issued due to the Limestone Merger, a decrease in other comprehensive losses recognized on available-for-sale investment securities, which was driven by changes in market interest rates, and net income for 2023.

Tangible book value per common share increased to $22.77 at December 31, 2025, from $19.94 at December 31, 2024, which was primarily due to net income over the last 12 months coupled with a decrease in accumulated other comprehensive loss.

The increase in tangible book value per common share at December 31, 2024, from at December 31, 2023, was due to net income over the 12-month period.

Future Outlook

Peoples improved its performance for the third consecutive year during 2024, recording record annual net income despite the challenges that were presented to the banking industry due to the bank failures in 2023.

In 2025, Peoples expects to generate positive operating leverage for the year, compared to 2024.

For 2025, Peoples expects net interest margin to be between 4.00% and 4.20% for the full year, which is assuming another 50 basis point reduction by the Federal Reserve, spread over the first nine months of 2025.

In 2026, Peoples expects to generate positive operating leverage for the year, excluding accretion and non-core costs, compared to 2025.

Operating leverage is calculated by taking the percentage of total revenue growth (net interest income plus non-interest income, excluding gains and losses) from one period compared to another, and deducting the percentage of total non-interest expense growth over the same period.

For 2026, Peoples expects net interest margin to be between 4.00% and 4.20% for the full year, which anticipates one 25 basis point market interest rate cut.

Each potential additional 25 basis point reduction in rates from the Federal Reserve would result in a 3 to 4 basis point decline in the net interest margin for the full year.

These projections will vary depending on the timing and magnitude of the anticipated rate cuts and the level of competition for deposits.

Peoples projects growth in total non-interest income, excluding net gains and losses, to be in the mid-to-high single-digits in 2025 compared to 2024.

Peoples is in a relatively neutral interest rate risk position, and will actively manage its balance sheet mix during 2026 to mitigate the negative impact of any potential market interest rate changes.

Peoples projects total non-interest income, excluding net gains and losses, to be between $28 million and $30 million per quarter for 2026, with the first quarter elevated as it includes annual performance-based insurance commissions.

Total non-interest expenses are expected to be between $72 million and $74 million for the second, third and fourth quarters of 2026, with the first quarter of 2026 being higher due to annual expenses typically recognized during the first quarter of each year.

The efficiency ratio is projected to be between 55% and 60% for 2025.

Peoples will continue to place importance on loan growth.

The efficiency ratio should be relatively similar to 2025.

Peoples anticipates that the annual loan growth for 2026 will be between 3% and 5%.

Provision for credit losses is expected to be at a similar quarterly run rate compared to 2024, with a modest reduction in our net charge-off rate compared to 2024.

The balance sheet mix of Peoples will be continually evaluated in an effort to mitigate exposure risk during 2025.

Total deposit balances are expected to grow by approximately 1% in 2025.

Peoples expects continued growth despite increased competition in its markets plus additional upward pressure on rates paid.

Throughout 2024, deposits balances increased primarily due to special promotional offerings on retail CDs throughout the year.

Peoples expects a slight reduction in net charge-offs, with a lower provision for credit losses for 2026, excluding any changes to economic forecasts.

Deposit balances are expected to grow slightly during 2026, and the loan-to-deposit ratio is projected to increase as deposit growth may be slower than loan growth during the year.

Management believes Peoples is in position to maintain strong asset quality metrics and continued growth into 2026.

Peoples came through 2024 with positive financial results despite the challenging economic environment and believes it will continue this trend into 2025.

During 2025, Peoples experienced increased net charge-offs associated with its small-ticket leasing business, and that trend is expected to continue for the first half of 2026, with those levels tapering off through the back half of 2026.

Peoples has made changes to the small-ticket leasing business during 2025 in an effort to originate higher quality credit tiers, while tightening the credit standards to more closely align with the expectations for the business.

For more information regarding risks and uncertainties that could impact the projections described above, please refer to “ITEM 1A RISK FACTORS” of this Form 10-K.

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resulting in an increased amount of net income and net interest margin over a 24-month period.

At December 31, 2024, the bull steepener scenario resulted in a decline in net interest income of 0.73%, as the impact of recent term funding mitigates the impact of lower short-term rates over a 12-month horizon, and an increase in economic value of equity of 1.90%.

At December 31, 2025, the bull steepener scenario resulted in an increase in net interest income of 0.20%, as the impact of recent term funding mitigates the impact of lower short-term rates over a 12-month horizon, and an increase in economic value of equity of 1.30%.

The bear steepener scenario highlights the risk to net interest income and the economic value of equity when short-term rates remain constant while long-term rates rise.

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

As of December 31, 2024, Peoples had eight interest rate swap contracts, with an aggregate notional value of $75.0 million.

As of December 31, 2025, Peoples had five interest rate swap contracts, with an aggregate notional value of $45.0 million.

Additional information regarding Peoples’ interest rate swaps can be found in “Note 15 Derivative Financial Instruments.”

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Additionally, the LCFP is subjected to a third-party review annually for effectiveness and regulatory compliance.

Starting at March 31, 2020, there was an increase in deposit balances due to the influx of funds from fiscal stimulus, the PPP and other government actions that persisted throughout 2021.

During 2022, deposit balances declined due to customers returning to pre-COVID-19 pandemic balances as well as rising market interest rates due to high levels of inflation.

During 2023, the Federal Reserve continued a historically aggressive rate-hiking campaign, leading to higher interest rates and higher competition for deposits.

As inflationary pressures cooled during 2024, the Federal Reserve began to lower rates starting the second half of the calendar year.

As inflationary pressures cooled during 2024, the Federal Reserve began to lower rates starting in the second half of 2024 and throughout 2025.

Peoples continued to offer various CD special rates to retain current clients and attract new clients.

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

What changed 10-K

Item 7. Management’s Discussion and Analysis