PEOPLES BANCORP INC 10-Q

ITEM 1. FINANCIAL STATEMENTS PEOPLES BANCORP INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS March 31, 2026 December 31, 2025 (Dollars in thousands) (Unaudited) Assets Cash and cash equivalents: Cash and balances due from banks $ 112,276 $ 107,864 Interest-bearing deposits in other banks 78,115 81,087 Total cash and cash equivalents 190,391 188,951 Available-for-sale investment securities, at fair value (amortized cost of $ 1,107,248 at March 31, 2026 and $ 1,076,980 at December 31, 2025) (a) 1,007,944 984,367 Held-to-maturity investment securities, at amortized cost (fair value of $ 820,850 at March 31, 2026 and $ 867,714 at December 31, 2025) (a) 883,675 922,837 Other investments 69,903 68,656 Total investment securities (a) 1,961,522 1,975,860 Loans and leases, net of deferred fees and costs (b) 6,770,208 6,756,907 Allowance for credit losses ( 78,392 ) ( 75,676 ) Net loans and leases (c) 6,691,816 6,681,231 Loans held for sale 4,043 2,667 Bank premises and equipment, net of accumulated depreciation 99,313 100,508 Bank owned life insurance 149,426 148,264 Goodwill 363,199 363,199 Other intangible assets 28,402 30,120 Other assets 159,975 158,830 Total assets $ 9,648,087 $ 9,649,630 Liabilities Deposits: Non-interest-bearing $ 1,586,514 $ 1,545,428 Interest-bearing 6,061,923 6,064,796 Total deposits 7,648,437 7,610,224 Short-term borrowings 505,862 530,285 Long-term borrowings 185,430 204,138 Accrued expenses and other liabilities 92,318 98,381 Total liabilities $ 8,432,047 $ 8,443,028 Stockholders’ equity Preferred shares, no par value, 50,000 shares authorized, no shares issued at March 31, 2026 or at December 31, 2025 — — Common shares, no par value, 50,000,000 shares authorized, 36,848,602 shares issued at March 31, 2026 and 36,836,943 shares issued at December 31, 2025, including at each date shares held in treasury 867,464 871,571 Retained earnings 451,107 436,748 Accumulated other comprehensive loss, net of deferred income taxes ( 76,042 ) ( 70,628 ) Treasury stock, at cost, 1,017,603 shares at March 31, 2026 and 1,215,120 shares at December 31, 2025 ( 26,489 ) ( 31,089 ) Total stockholders’ equity $ 1,216,040 $ 1,206,602 Total liabilities and stockholders’ equity $ 9,648,087 $ 9,649,630 (a) Available-for-sale investment securities and held-to-maturity investment securities are presented net of allowance for credit losses of $ 0 and $ 233 , respectively, at March 31, 2026, and $ 0 and $ 236 , respectively, at December 31, 2025. (b) Also referred to throughout this Quarterly Report on Form 10-Q as "total loans" or "loans held for investment." (c) Also referred to throughout this Quarterly Report on Form 10-Q as "net loans." See Notes to the Unaudited Condensed Consolidated Financial Statements 3 Table of Contents PEOPLES BANCORP INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) Three Months Ended March 31, (Dollars in thousands, except per share data) 2026 2025 Interest income: Interest and fees on loans and leases $ 108,690 $ 107,302 Interest and dividends on taxable investment securities 16,526 15,372 Interest on tax-exempt investment securities 815 968 Other interest income 790 900 Total interest income 126,821 124,542 Interest expense: Interest on deposits 28,630 35,164 Interest on short-term borrowings 4,959 508 Interest on long-term borrowings 2,812 3,615 Total interest expense 36,401 39,287 Net interest income 90,420 85,255 Provision for credit losses 9,694 10,190 Net interest income after provision for credit losses 80,726 75,065 Non-interest income: Electronic banking income 5,927 5,885 Trust and investment income 5,605 5,061 Insurance income 5,580 6,054 Lease income 4,581 3,468 Deposit account service charges 4,267 4,015 Bank owned life insurance income 1,162 1,133 Mortgage banking income 376 396 Net loss on investment securities — ( 2 ) Net loss on asset disposals and other transactions ( 410 ) ( 361 ) Other non-interest income 1,166 1,450 Total non-interest income 28,254 27,099 Non-interest expense: Salaries and employee benefit costs 39,835 39,821 Data processing and software expense 7,536 7,005 Net occupancy and equipment expense 6,224 5,612 Professional fees 2,753 3,087 Electronic banking expense 2,081 2,025 Operating lease expense 1,804 985 Amortization of other intangible assets 1,697 2,213 Federal Deposit Insurance Corporation ("FDIC") insurance expense 1,410 1,251 Other loan expenses 1,123 1,119 Franchise tax expense 1,004 929 Marketing expense 886 903 Communication expense 589 734 Travel and entertainment expense 583 500 Other non-interest expense 4,110 4,603 Total non-interest expense 71,635 70,787 Income before income taxes 37,345 31,377 Income tax expense 8,339 7,041 Net income $ 29,006 $ 24,336 Earnings per common share - basic $ 0.82 $ 0.69 Earnings per common share - diluted $ 0.81 $ 0.68 Weighted-average number of common shares outstanding - basic 35,108,649 34,895,723 Weighted-average number of common shares outstanding - diluted 35,485,424 35,297,135 Cash dividends declared $ 14,647 $ 14,227 Cash dividends declared per common share $ 0.41 $ 0.40 See Notes to the Unaudited Condensed Consolidated Financial Statements 4 Table of Contents PEOPLES BANCORP INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) Three Months Ended March 31, (Dollars in thousands) 2026 2025 Net income $ 29,006 $ 24,336 Other comprehensive income: Available-for-sale investment securities: Gross unrealized holding (loss) gain arising during the period ( 6,691 ) 19,819 Related tax benefit (expense) 1,272 ( 4,620 ) Reclassification adjustment for net loss included in net income — 2 Related tax expense — — Net effect on other comprehensive income ( 5,419 ) 15,201 Cash flow hedges: Net gain (loss) arising during the period 168 ( 236 ) Related tax (expense) benefit ( 39 ) 55 Reclassification adjustment for net gain included in net income ( 162 ) ( 425 ) Related tax benefit 38 99 Net effect on other comprehensive income 5 ( 507 ) Total other comprehensive income, net of tax ( 5,414 ) 14,694 Total comprehensive income $ 23,592 $ 39,030 See Notes to the Unaudited Condensed Consolidated Financial Statements 5 Table of Contents PEOPLES BANCORP INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (Unaudited) Accumulated Other Comprehensive Loss Total Stockholders' Equity Common Shares Retained Earnings Treasury Stock (Dollars in thousands) Balance, December 31, 2025 $ 871,571 $ 436,748 $ ( 70,628 ) $ ( 31,089 ) $ 1,206,602 Net income — 29,006 — — 29,006 Other comprehensive income, net of tax — — ( 5,414 ) — ( 5,414 ) Cash dividends declared — ( 14,647 ) — — ( 14,647 ) Reissuance of treasury stock for common share awards ( 6,428 ) — — 6,428 — Reissuance of treasury stock for deferred compensation plan for Boards of Directors — — — 29 29 Repurchase of treasury stock in connection with employee incentive program and compensation plan for Boards of Directors — — — ( 2,138 ) ( 2,138 ) Common shares issued under dividend reinvestment plan 375 — — — 375 Common shares issued under compensation plan for Boards of Directors 28 — — 103 131 Common shares issued under employee stock purchase plan 48 — — 178 226 Stock-based compensation 1,870 — — — 1,870 Balance, March 31, 2026 $ 867,464 $ 451,107 $ ( 76,042 ) $ ( 26,489 ) $ 1,216,040 6 Table of Contents Accumulated Other Comprehensive Loss Total Stockholders' Equity Common Shares Retained Earnings Treasury Stock (Dollars in thousands) Balance, December 31, 2024 $ 866,844 $ 388,109 $ ( 110,385 ) $ ( 32,978 ) $ 1,111,590 Net income — 24,336 — — 24,336 Other comprehensive income, net of tax — — 14,694 — 14,694 Cash dividends declared — ( 14,227 ) — — ( 14,227 ) Reissuance of treasury stock for common share awards ( 3,254 ) — — 3,254 — Repurchase of treasury stock in connection with employee incentive program and compensation plan for Boards of Directors — — — ( 1,754 ) ( 1,754 ) Common shares issued under dividend reinvestment plan 335 — — — 335 Common shares issued under compensation plan for Boards of Directors 17 — — 99 116 Common shares issued under employee stock purchase plan 44 — — 257 301 Stock-based compensation 2,430 — — — 2,430 Balance, March 31, 2025 $ 866,416 $ 398,218 $ ( 95,691 ) $ ( 31,122 ) $ 1,137,821 7 Table of Contents PEOPLES BANCORP INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) Three Months Ended March 31, (Dollars in thousands) 2026 2025 Net cash provided by operating activities $ 34,516 $ 34,276 Investing activities: Available-for-sale investment securities: Purchases ( 56,746 ) — Proceeds from sales 2,817 967 Proceeds from principal payments, calls and prepayments 23,767 28,401 Held-to-maturity investment securities: Purchases ( 48,918 ) ( 14,909 ) Proceeds from principal payments 88,874 36,515 Other investments: Purchases ( 11,880 ) ( 2,646 ) Proceeds from sales 10,431 11,367 Net increase in loans held for investment ( 17,962 ) ( 74,804 ) Net expenditures for premises and equipment ( 1,210 ) ( 2,748 ) Proceeds from sales of other real estate owned — 210 Other ( 21 ) — Net cash used in investing activities ( 10,848 ) ( 17,647 ) Financing activities: Net increase in non-interest-bearing deposits 41,086 18,624 Net (decrease) increase in interest-bearing deposits ( 2,942 ) 125,655 Net decrease in short-term borrowings ( 24,423 ) ( 174,246 ) Proceeds from long-term borrowings 6,108 3,295 Payments on long-term borrowings ( 25,169 ) ( 4,621 ) Cash dividends paid ( 14,647 ) ( 14,227 ) Purchase of treasury stock under share repurchase program — — Purchase of treasury stock in connection with employee incentive program and compensation plan for Boards of Directors to be held as treasury stock ( 2,138 ) ( 1,754 ) Proceeds from issuance of common shares 353 293 Other ( 456 ) ( 334 ) Net cash used in financing activities ( 22,228 ) ( 47,315 ) Net increase (decrease) in cash and cash equivalents 1,440 ( 30,686 ) Cash and cash equivalents at beginning of period 188,951 217,664 Cash and cash equivalents at end of period $ 190,391 $ 186,978 Supplemental cash flow information: Interest paid $ 38,628 $ 37,531 Federal income taxes paid — 6,000 State income taxes paid 127 70 Supplemental noncash disclosures: Noncash recognition of new leases — 852 See Notes to the Unaudited Condensed Consolidated Financial Statements 8 Table of Contents PEOPLES BANCORP INC. AND SUBSIDIARIES NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS Note 1 Summary of Significant Accounting Policies Basis of Presentation: The accompanying Unaudited Condensed Consolidated Financial Statements of Peoples Bancorp Inc. and its subsidiaries ("Peoples" refers to Peoples Bancorp Inc. and its consolidated subsidiaries collectively, except where the context indicates the reference relates solely to Peoples Bancorp Inc.) have been prepared in accordance with accounting principles generally accepted in the United States ("US GAAP") for interim financial information and the instructions for Form 10-Q and Article 10 of Regulation S-X. Accordingly, these financial statements do not contain all of the information and footnotes required by US GAAP for annual financial statements and should be read in conjunction with Peoples’ Annual Report on Form 10-K for the fiscal year ended December 31, 2025 ("Peoples' 2025 Form 10-K"). The accounting and reporting policies followed in the presentation of the accompanying Unaudited Condensed Consolidated Financial Statements are consistent with those described in "Note 1 Summary of Significant Accounting Policies" of the Notes to the Consolidated Financial Statements included in Peoples’ 2025 Form 10-K, as updated by the information contained in this Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2026 (this "Form 10-Q"). Management has evaluated all significant events and transactions that occurred after March 31, 2026 for potential recognition or disclosure in these Unaudited Condensed Consolidated Financial Statements. In the opinion of management, these Unaudited Condensed Consolidated Financial Statements reflect all adjustments necessary to present fairly such information for the periods and at the dates indicated. Such adjustments are normal and recurring in nature. Certain items in prior financial statements have been reclassified to conform to the current presentation, which had no impact on net income, total comprehensive income, net cash provided by operating, financing, or investing activities or total stockholders’ equity. The impact of such changes are not considered material to Peoples' financial statements. Intercompany accounts and transactions have been eliminated. The Consolidated Balance Sheet at December 31, 2025, contained herein, has been derived from the audited Consolidated Balance Sheet included in Peoples’ 2025 Form 10-K. The preparation of the condensed consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Results of operations for interim periods are not necessarily indicative of the results to be expected for the full year, due in part to seasonal variations and unusual or infrequently occurring items. Operating Segments: As a community banking entity, Peoples offers its customers a full range of products including a complete line of banking, leasing, insurance, investment and trust solutions. Peoples’ business activities are currently confined to a single reportable operating segment, which is community banking. Peoples’ single operating segment was determined based on the similar economic characteristics shared by the components of community banking. Peoples’ chief operating decision maker (“CODM”) is composed of its President and Chief Executive Officer, and its Chief Financial Officer. Peoples’ CODM considers all components of consolidated interest income, interest expense, non-interest income, and non-interest expense as presented in Peoples’ Consolidated Statements of Operations for the purposes of assessing performance of Peoples’ single reportable segment and allocating resources within its reportable segment. The CODM does not review segment revenue or expense information at a lower level than what is included in Peoples’ Consolidated Statements of Operations. New Accounting Pronouncements: From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board ("FASB") or other standard setting bodies that are adopted by Peoples as of the required effective dates. Refer to "Note 1 Summary of Significant Accounting Policies" of the Notes to the Consolidated Financial Statements included in Peoples’ 2025 Form 10-K for the impact of recently adopted standards impacting Peoples. Unless otherwise discussed, management believes any recently adopted standards will not have a material impact on Peoples' financial statements taken as a whole. ASU 2025-12 - Codification Improvements: The FASB issued an Accounting Standards Update (“ASU”) 2025-12 in December 2025. The amendments in ASU 2025-12 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 early adopted the amendments within the guidance as of January 1, 2026. Overall, the guidance did not have a material impact on Peoples' financial statements. However, ASU 2025-12 Issue #5 clarified that lease receivables from sales-type or direct financing leases are excluded from the enhanced disclosures required by ASU 2022-02, Troubled Debt Restructurings and Vintage Disclosures. As such, lease receivables from sales-type or direct financing leases are excluded from the current and prior period disclosures related to modifications for borrowers experiencing financial difficulty. Note 2 Fair Value of Assets and Liabilities Fair value represents the amount expected to be received to sell an asset or paid to transfer a liability in its principal or most advantageous market in an orderly transaction between market participants at the measurement date. In accordance with fair value accounting guidance, Peoples measures, records and reports various types of assets and liabilities at fair value on either a recurring or 9 Table of Contents a non-recurring basis in the Unaudited Condensed Consolidated Financial Statements. Those assets and liabilities are presented below in the sections entitled “Assets and Liabilities Required to be Measured and Reported at Fair Value on a Recurring Basis” and “Assets and Liabilities Required to be Measured and Reported at Fair Value on a Non-Recurring Basis.” Depending on the nature of the asset or the liability, Peoples uses various valuation methodologies and assumptions to estimate fair value. The measurement of fair value under US GAAP uses a hierarchy, which is described in "Note 1 Summary of Significant Accounting Policies" of the Notes to the Consolidated Financial Statements included in Peoples' 2025 Form 10-K. Assets and liabilities are assigned to a level within the fair value hierarchy based on the lowest level of significant input used to measure fair value. Assets and liabilities may change levels within the fair value hierarchy due to market conditions or other circumstances. Those transfers are recognized on the date of the event that prompted the transfer. There were no transfers of assets or liabilities required to be measured at fair value on a recurring basis between levels of the fair value hierarchy during the periods presented. Assets and Liabilities Required to be Measured and Reported at Fair Value on a Recurring Basis The following table provides the fair value for assets and liabilities required to be measured and reported at fair value on a recurring basis on the Unaudited Consolidated Balance Sheets by level in the fair value hierarchy. Recurring Fair Value Measurements at Reporting Date March 31, 2026 December 31, 2025 (Dollars in thousands) Level 1 Level 2 Level 1 Level 2 Assets: Available-for-sale investment securities: Obligations of: U.S. Treasury and government agencies $ 9,878 $ 16,274 $ — $ 17,580 U.S. government sponsored agencies — 231,332 — 206,330 States and political subdivisions — 165,105 — 170,832 Residential mortgage-backed securities — 522,638 — 544,038 Commercial mortgage-backed securities — 59,905 — 41,804 Bank-issued trust preferred securities — 2,812 — 3,783 Total available-for-sale securities $ 9,878 $ 998,066 $ — $ 984,367 Equity investment securities (a) 148 256 176 239 Nonqualified deferred compensation (a) (b) 5,671 — 6,074 — Derivative assets (c) — 9,345 — 9,708 Liabilities: Derivative liabilities (d) $ — $ 8,890 $ — $ 9,275 (a) Included in "Other investments" on the Unaudited Consolidated Balance Sheets. For additional information, see "Note 3 Investment Securities" of the Notes to the Unaudited Condensed Consolidated Financial Statements. (b) Investments in the nonqualified deferred compensation plan consist of mutual funds. (c) Included in " Other assets " on the Unaudited Consolidated Balance Sheets. For additional information, see "Note 10 Derivative Financial Instruments" of the Notes to the Unaudited Condensed Consolidated Financial Statements. (d) Included in " Accrued expenses and other liabilities " on the Unaudited Consolidated Balance Sheets. For additional information, see "Note 10 Derivative Financial Instruments" of the Notes to the Unaudited Condensed Consolidated Financial Statements. Available-for-Sale Investment Securities: The fair values used by Peoples are obtained from an independent pricing service and represent either quoted market prices for the identical securities (Level 1) or fair values determined by pricing models using a market approach that considers observable market data, such as interest rate volatility, secured overnight funding rate ("SOFR") or other relevant yield curves, credit spreads, and prices from market makers and live trading systems (Level 2). Management reviews the valuation methodology and quality controls utilized by the pricing services or broker in management's overall assessment of the reasonableness of the fair values provided, and challenges prices when management believes a material discrepancy in pricing exists. Equity Investment Securities: The fair values of Peoples' equity investment securities are obtained from q uoted prices in active exchange markets for identical assets or liabilities (Level 1) or quoted prices in less active markets (Level 2). Nonqualified deferred compensation: The underlying assets relating to the nonqualified deferred compensation plan are included in a trust and primarily consist of cash and exchange traded mutual funds, which values are based on market prices (Level 1). 10 Table of Contents Derivative Assets and Derivative Liabilities : The fair values for derivative financial instruments are determined based on third-party models, which leverage current market interest rates, broker-dealer quotations on similar products, or other related input parameters (Level 2). Assets and Liabilities Required to be Measured and Reported at Fair Value on a Non-Recurring Basis The following table provides the fair value for each class of assets and liabilities required to be measured and reported at fair value on a non-recurring basis on the Unaudited Consolidated Balance Sheets by level in the fair value hierarchy at March 31, 2026 and December 31, 2025. Non-Recurring Fair Value Measurements at Reporting Date March 31, 2026 December 31, 2025 (Dollars in thousands) Level 2 Level 3 Level 2 Level 3 Assets: Collateral dependent loans $ — $ 16,526 $ — $ 7,738 Loans held for sale (a) 1,250 — 1,678 — (a) Loans held for sale are presented gross of a valuation allowance of $ 58 and $ 57 at March 31, 2026 and at December 31, 2025, respectively. Collateral Dependent Loans: Loans for which repayment is dependent upon the operation or sale of collateral, as the borrower is experiencing financial difficulty, are considered collateral dependent. Peoples utilizes outside third-party appraisal services to value the underlying collateral, which Peoples then uses to report the loans at their fair value (Level 3). Loans Held for Sale: Loans originated and intended to be sold in the secondary market, generally one-to-four family residential loans, are carried, in aggregate, at the lower of cost or estimated fair value. Peoples uses a valuation model using quoted market prices of similar instruments in arriving at the fair value (Level 2). 11 Table of Contents Financial Instruments Not Required to be Measured or Reported at Fair Value The following table provides the carrying amount for each class of assets and liabilities and the fair value for certain financial instruments that are not required to be measured or reported at fair value on the Unaudited Consolidated Balance Sheets. Fair Value Measurements of Other Financial Instruments (Dollars in thousands) Fair Value Hierarchy Level March 31, 2026 December 31, 2025 Carrying Amount Fair Value Carrying Amount Fair Value Assets: Cash and cash equivalents 1 $ 190,391 190,391 $ 188,951 $ 188,951 Held-to-maturity investment securities: Obligations of: U.S. government sponsored agencies 2 247,148 237,736 261,826 254,435 States and political subdivisions (a) 2 138,831 112,705 140,843 115,657 Residential mortgage-backed securities 2 399,724 385,642 423,628 413,123 Commercial mortgage-backed securities 2 98,205 84,767 96,776 84,499 Total held-to-maturity securities 883,908 820,850 923,073 867,714 Other investments: Other investments at cost: Federal Home Loan Bank ("FHLB") stock 3 32,390 32,390 30,843 30,843 Federal Reserve Bank ("FRB") stock 3 27,114 27,114 27,114 27,114 Other investments (b) 3 4,324 4,324 4,210 4,210 Total other investments at cost 63,828 63,828 62,167 62,167 Loans and leases, net of deferred fees and costs (c) 3 6,770,208 6,685,327 6,756,907 6,697,321 Bank owned life insurance 2 149,426 149,426 148,264 148,264 Liabilities: Deposits 2 $ 7,648,437 $ 6,507,890 $ 7,610,224 $ 6,579,413 Short-term borrowings 2 505,862 505,862 530,285 530,282 Long-term borrowings 2 185,430 202,092 204,138 222,323 (a) Obligations of states and political subdivisions are presented gross of an allowance for credit losses of $ 233 and $ 236 at March 31, 2026 and at December 31, 2025, respectively. (b) "Other investments", as reported on the Unaudited Consolidated Balance Sheets, also included equity investment securities at March 31, 2026 and at December 31, 2025, which are reported in the "Assets and Liabilities Required to be Measured and Reported at Fair Value on a Recurring Basis" table above and not included in this table. (c) Loans and leases, net of deferred fees and costs, are presented gross of an allowance for credit losses of $ 78.4 million and $ 75.7 million at March 31, 2026 and at December 31, 2025, respectively. For certain financial assets and liabilities, carrying value approximates fair value due to the nature of the financial instrument. These financial instruments include cash and cash equivalents and overnight borrowings. Peoples used the following methods and assumptions in estimating the fair value of the following financial instruments: Cash and Cash Equivalents: Cash and cash equivalents include cash on hand, balances due from other banks, interest-bearing deposits in other banks, federal funds sold and other short-term investments with original maturities of 90 days or less. The carrying amount for cash and cash equivalents balances are a reasonable estimate of fair value (Level 1). Held-to-Maturity Investment Securities: The fair values used by Peoples are obtained from an independent pricing service and represent fair values determined by pricing models using a market approach that considers observable market data, such as interest rate volatility, relevant yield curves, credit spreads and prices from market makers and live trading systems (Level 2). Management reviews the valuation methodology and quality controls utilized by the pricing services in management's overall assessment of the reasonableness of the fair values provided, and challenges prices when management believes a material discrepancy in pricing exists. Other Investments: FHLB and FRB stock are both recorded at historical cost. Other investments are otherwise primarily comprised of investments accounted for under the cost method due to the level of control Peoples exercises over the investee. These investments are not actively traded in an open market as sales for these types of investments are rare (Level 3). 12 Table of Contents Loans and Leases, Net of Deferred Fees and Costs: The fair value of portfolio loans and leases assumes sale of the underlying notes to a third-party financial investor. Accordingly, this value is not necessarily the value to Peoples if the notes were held to maturity. Peoples considers interest rate, credit and market factors in estimating the fair value of loans and leases (Level 3). Fair values for loans and leases are estimated using a discounted cash flow methodology. The discount rates take into account interest rates currently being offered to customers for loans and leases with similar terms, the credit risk associated with the loans and leases and other market factors, including liquidity. Bank Owned Life Insurance: Peoples' bank owned life insurance ("BOLI") policies are recorded at their cash surrender value, which approximates fair value (Level 2). Peoples recognizes tax-exempt income from the periodic increases in the cash surrender value of these policies and from death benefits. Deposits: The fair value of fixed-maturity certificates of deposit ("CDs") is estimated using a discounted cash flow calculation based on current rates offered for deposits of similar remaining maturities. Demand and other non-fixed-maturity deposits are estimated using a discounted cash flow calculation based on maturity, attrition and re-pricing assumptions (Level 2). Short-term Borrowings: The fair value of short-term borrowings is estimated using a discounted cash flow analysis based on rates currently available to Peoples for borrowings with similar terms (Level 2). Long-term Borrowings: The fair value of long-term borrowings is estimated using a discounted cash flow analysis based on rates currently available to Peoples for borrowings with similar terms (Level 2). Note 3 Investment Securities Available-for-sale The following table summarizes Peoples' available-for-sale investment securities: (Dollars in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value March 31, 2026 Obligations of: U.S. Treasury and government agencies $ 25,958 $ 224 $ ( 30 ) $ 26,152 U.S. government sponsored agencies 239,214 459 ( 8,341 ) 231,332 States and political subdivisions 185,854 3 ( 20,752 ) 165,105 Residential mortgage-backed securities 586,875 1,443 ( 65,680 ) 522,638 Commercial mortgage-backed securities 66,347 — ( 6,442 ) 59,905 Bank-issued trust preferred securities 3,000 — ( 188 ) 2,812 Total available-for-sale securities $ 1,107,248 $ 2,129 $ ( 101,433 ) $ 1,007,944 December 31, 2025 Obligations of: U.S. Treasury and government agencies $ 17,386 $ 213 $ ( 19 ) $ 17,580 U.S. government sponsored agencies 212,282 504 ( 6,456 ) 206,330 States and political subdivisions 189,131 103 ( 18,402 ) 170,832 Residential mortgage-backed securities 606,292 1,749 ( 64,003 ) 544,038 Commercial mortgage-backed securities 47,889 1 ( 6,086 ) 41,804 Bank-issued trust preferred securities 4,000 — ( 217 ) 3,783 Total available-for-sale securities $ 1,076,980 $ 2,570 $ ( 95,183 ) $ 984,367 13 Table of Contents The gross gains and losses realized by Peoples from sales or prepayments of available-for-sale investment securities for the periods ended March 31 were as follows: Three Months Ended March 31, (Dollars in thousands) 2026 2025 Gross gains realized $ 121 $ 25 Gross losses realized ( 121 ) ( 27 ) Net loss realized $ — $ ( 2 ) The cost of investment securities sold, and any resulting gain or loss, were based on the specific identification method and recognized as of the trade date. The following table presents a summary of available-for-sale investment securities that have been in a continuous unrealized loss position for the periods identified: Less than 12 Months 12 Months or More Total (Dollars in thousands) Fair Value Unrealized Loss No. of Securities Fair Value Unrealized Loss No. of Securities Fair Value Unrealized Loss March 31, 2026 Obligations of: U.S. Treasury and government agencies $ 7,560 $ 30 11 $ 89 $ 1 1 $ 7,649 $ 31 U.S. government sponsored agencies 90,263 1,570 20 100,032 6,771 21 190,295 8,341 States and political subdivisions 23,181 1,034 45 139,190 19,717 99 162,371 20,751 Residential mortgage-backed securities 33,499 216 41 438,322 65,464 224 471,821 65,680 Commercial mortgage-backed securities 21,143 334 7 38,692 6,108 21 59,835 6,442 Bank-issued trust preferred securities — — — 2,812 188 1 2,812 188 Total $ 175,646 $ 3,184 124 $ 719,137 $ 98,249 367 $ 894,783 $ 101,433 December 31, 2025 Obligations of: U.S. Treasury and government agencies $ 5,319 $ 16 3 $ 741 $ 3 4 $ 6,060 $ 19 U.S. government sponsored agencies 47,059 341 10 127,311 6,115 27 174,370 6,456 States and political subdivisions 3,129 460 5 158,898 17,942 134 162,027 18,402 Residential mortgage-backed securities 13,310 62 10 461,661 63,941 235 474,971 64,003 Commercial mortgage-backed securities 2,292 9 2 39,000 6,077 21 41,292 6,086 Bank-issued trust preferred securities — — — 3,783 217 2 3,783 217 Total $ 71,109 $ 888 30 $ 791,394 $ 94,295 423 $ 862,503 $ 95,183 Management evaluates available-for-sale investment securities for an allowance for credit losses on a quarterly basis. At March 31, 2026, management concluded that no individual securities at an unrealized loss position required an allowance for credit losses. At March 31, 2026, Peoples did not have the intent to sell, nor was it more likely than not that Peoples would be required to sell, any of the securities with an unrealized loss prior to recovery. Further, the unrealized losses at both March 31, 2026, and December 31, 2025, were attributable to changes in market interest rates and spreads since the securities were purchased, and were not credit-related losses. The unrealized loss with respect to the one bank-issued trust preferred security that had been in an unrealized loss position for 12 months or more at March 31, 2026 was attributable to the subordinated nature of the trust preferred security. 14 Table of Contents The table below presents the amortized cost, fair value and total weighted-average yield of available-for-sale securities by contractual maturity at March 31, 2026. The weighted-average yields are based on the amortized cost. In some cases, the issuers may have the right to call or prepay obligations without call or prepayment penalties prior to the contractual maturity date. (Dollars in thousands) Within 1 Year 1 to 5 Years 5 to 10 Years Over 10 Years Total Amortized cost Obligations of: U.S. Treasury and government agencies $ 90 $ 7,052 $ 14,372 $ 4,444 $ 25,958 U.S. government sponsored agencies — 42,384 134,999 61,831 239,214 States and political subdivisions 3,445 36,744 70,888 74,777 185,854 Residential mortgage-backed securities — 1,488 48,222 537,165 586,875 Commercial mortgage-backed securities 104 16,948 16,158 33,137 66,347 Bank-issued trust preferred securities — — 3,000 — 3,000 Total available-for-sale securities $ 3,639 $ 104,616 $ 287,639 $ 711,354 $ 1,107,248 Fair value Obligations of: U.S. Treasury and government agencies $ 89 $ 7,114 $ 14,438 $ 4,511 $ 26,152 U.S. government sponsored agencies — 39,106 130,641 61,585 231,332 States and political subdivisions 3,437 34,557 61,880 65,231 165,105 Residential mortgage-backed securities — 1,444 45,536 475,658 522,638 Commercial mortgage-backed securities 104 15,527 14,242 30,032 59,905 Bank-issued trust preferred securities — — 2,812 — 2,812 Total available-for-sale securities $ 3,630 $ 97,748 $ 269,549 $ 637,017 $ 1,007,944 Total weighted-average yield 2.98 % 1.92 % 3.15 % 2.77 % 2.79 % Held-to-maturity The following table summarizes Peoples’ held-to-maturity investment securities: (Dollars in thousands) Amortized Cost Allowance for Credit Losses Gross Unrealized Gains Gross Unrealized Losses Fair Value March 31, 2026 Obligations of: U.S. government sponsored agencies $ 247,148 $ — $ 643 $ ( 10,055 ) $ 237,736 States and political subdivisions 138,831 ( 233 ) 72 ( 25,965 ) 112,705 Residential mortgage-backed securities 399,724 — 3,147 ( 17,229 ) 385,642 Commercial mortgage-backed securities 98,205 — — ( 13,438 ) 84,767 Total held-to-maturity investment securities $ 883,908 $ ( 233 ) $ 3,862 $ ( 66,687 ) $ 820,850 December 31, 2025 Obligations of: U.S. government sponsored agencies $ 261,826 $ — $ 740 $ ( 8,131 ) $ 254,435 States and political subdivisions 140,843 ( 236 ) 77 ( 25,027 ) 115,657 Residential mortgage-backed securities 423,628 — 4,916 ( 15,421 ) 413,123 Commercial mortgage-backed securities 96,776 — — ( 12,277 ) 84,499 Total held-to-maturity investment securities $ 923,073 $ ( 236 ) $ 5,733 $ ( 60,856 ) $ 867,714 There were no sales of held-to-maturity investment securities during the three-month periods ended March 31, 2026 or December 31, 2025. Management evaluates held-to-maturity investment securities for an allowance for credit losses on a quarterly basis. The majority of Peoples' held-to maturity investment securities are agency-backed securities, for which an allowance for credit losses was not recorded. Peoples calculated the allowance for credit losses for obligations of state and political subdivisions using cumulative default rate averages for municipal securities. Peoples reported $ 0.2 million of allowance for credit losses for held-to-maturity investment securities at both March 31, 2026, and December 31, 2025. The following table presents a summary of held-to-maturity investment securities that had been in a continuous unrealized loss position for the periods identified: 15 Table of Contents Less than 12 Months 12 Months or More Total (Dollars in thousands) Fair Value Unrealized Loss No. of Securities Fair Value Unrealized Loss No. of Securities Fair Value Unrealized Loss March 31, 2026 Obligations of: U.S. government sponsored agencies $ 142,819 $ 2,650 23 $ 58,954 $ 7,405 17 $ 201,773 $ 10,055 States and political subdivisions 1,234 303 2 109,386 25,662 65 110,620 25,965 Residential mortgage-backed securities 87,374 1,224 19 131,063 16,005 42 218,437 17,229 Commercial mortgage-backed securities 16,146 1,273 7 68,622 12,165 29 84,768 13,438 Total $ 247,573 $ 5,450 51 $ 368,025 $ 61,237 153 $ 615,598 $ 66,687 December 31, 2025 Obligations of: U.S. government sponsored agencies $ 131,933 $ 1,447 16 $ 66,509 $ 6,684 20 $ 198,442 $ 8,131 States and political subdivisions 1,238 301 2 110,531 24,726 65 111,769 25,027 Residential mortgage-backed securities 34,814 261 6 143,068 15,160 45 177,882 15,421 Commercial mortgage-backed securities 7,776 111 3 73,975 12,166 30 81,751 12,277 Total $ 175,761 $ 2,120 27 $ 394,083 $ 58,736 160 $ 569,844 $ 60,856 The table below presents the amortized cost, fair value and total weighted-average yield of held-to-maturity investment securities by contractual maturity at March 31, 2026. The weighted-average yields are based on the amortized cost and are computed on a fully taxable-equivalent basis using a federal statutory corporate income tax rate of 21 % at March 31, 2026. In some cases, the issuers may have the right to call or prepay obligations without call or prepayment penalties prior to the contractual maturity date. (Dollars in thousands) Within 1 Year 1 to 5 Years 5 to 10 Years Over 10 Years Total Amortized cost Obligations of: U.S. government sponsored agencies $ 3,499 $ 2,198 $ 121,114 $ 120,337 $ 247,148 States and political subdivisions 2,441 4,583 31,623 100,184 138,831 Residential mortgage-backed securities 2 — 7,019 392,703 399,724 Commercial mortgage-backed securities 980 7,736 39,455 50,034 98,205 Total held-to-maturity investment securities $ 6,922 $ 14,517 $ 199,211 $ 663,258 $ 883,908 Fair value Obligations of: U.S. government sponsored agencies $ 3,439 $ 2,032 $ 117,621 $ 114,644 $ 237,736 States and political subdivisions 2,506 4,270 26,928 79,001 112,705 Residential mortgage-backed securities 2 — 6,633 379,007 385,642 Commercial mortgage-backed securities 972 7,245 34,918 41,632 84,767 Total held-to-maturity investment securities $ 6,919 $ 13,547 $ 186,100 $ 614,284 $ 820,850 Total weighted-average yield 1.87 % 1.97 % 3.72 % 4.11 % 3.97 % 16 Table of Contents Other Investments Peoples' other investments on the Unaudited Consolidated Balance Sheets consist largely of shares of FHLB stock and of FRB stock. The following table summarizes the carrying value of Peoples' other investments: (Dollars in thousands) March 31, 2026 December 31, 2025 FHLB stock $ 32,390 $ 30,843 FRB stock 27,114 27,114 Nonqualified deferred compensation 5,671 6,074 Equity investment securities 3,859 3,756 Other investments 869 869 Total other investments $ 69,903 $ 68,656 During the three months ended March 31, 2026, Peoples redeemed $ 9.8 million of FHLB stock in order to be in compliance with the requirements of the FHLB. Peoples purchased $ 11.4 million of additional FHLB stock during the three months ended March 31, 2026, as a result of the FHLB's capital requirements on FHLB advances. For the three months ended March 31, 2026 and 2025, Peoples recorded the change in the fair value of equity investment securities held during the period in "Other non-interest income", resulting in unrealized losses of $ 20,000 and $ 9,000 , respectively. At March 31, 2026, Peoples' investment in equity investment securities was comprised largely of common stocks issued by various unrelated bank holding companies. There were no equity investment securities of a single issuer that exceeded 10% of Peoples' stockholders' equity at March 31, 2026. Pledged Securities Peoples has pledged available-for-sale investment securities and held-to-maturity investment securities to secure public and trust department deposits, and repurchase agreements in accordance with federal and state requirements. Peoples has also pledged available-for-sale investment securities to secure additional borrowing capacity at the FHLB and the FRB. The following table summarizes the carrying amount of Peoples' pledged securities: Carrying Amount (Dollars in thousands) March 31, 2026 December 31, 2025 Securing public and trust department deposits, and repurchase agreements: Available-for-sale $ 306,147 $ 328,516 Held-to-maturity 750,422 704,470 Securing additional borrowing capacity at the FHLB and the FRB: Available-for-sale 129,691 4,018 Held-to-maturity 43,854 68,425 Accrued Interest Accrued interest receivable is not included in investment securities balances, and is presented in the “Other assets” line of the Unaudited Consolidated Balance Sheets, with no recorded allowance for credit losses. Interest receivable on investment securities was $ 9.9 million at March 31, 2026 and $ 9.0 million at December 31, 2025. Note 4 Loans and Leases Peoples' loan portfolio consists of various types of loans and leases originated primarily as a result of lending opportunities within Peoples' footprint. Peoples also originates insurance premium finance loans nationwide through its Peoples Premium Finance division, and originates leases nationwide through its North Star Leasing ("NSL") division and its Vantage Financial, LLC ("Vantage") subsidiary. 17 Table of Contents The major classifications of loan balances (in each case, net of deferred fees and costs) excluding loans held for sale, were as follows: (Dollars in thousands) March 31, 2026 December 31, 2025 Construction $ 269,571 $ 300,941 Commercial real estate, other 2,340,833 2,363,967 Commercial and industrial 1,646,797 1,535,755 Premium finance 228,883 253,075 Leases 350,226 365,649 Residential real estate 852,011 861,722 Home equity lines of credit 260,909 253,864 Consumer, indirect 699,854 700,582 Consumer, direct 119,859 120,338 Deposit account overdrafts 1,265 1,014 Total loans, at amortized cost $ 6,770,208 $ 6,756,907 The table above includes net deferred loan origination costs of $ 20.2 million and $ 20.0 million at March 31, 2026 and at December 31, 2025, respectively. The remaining unamortized net discount included in the amortized cost of loans and leases was $ 8.4 million and $ 9.7 million at March 31, 2026 and at December 31, 2025, respectively. Accrued interest receivable is not included within the loan balances, but is presented in the “Other assets” line of the Unaudited Consolidated Balance Sheets, with no recorded allowance for credit losses. Total interest receivable on loans was $ 23.9 million at March 31, 2026 and $ 25.0 million at December 31, 2025. Nonaccrual and Past Due Loans A loan is considered past due if any required principal and interest payments have not been received as of the date such payments were required to be made under the terms of the loan agreement. A loan may be placed on nonaccrual status regardless of whether or not such loan is considered past due. The amortized cost of loans on nonaccrual status and of loans delinquent for 90 days or more and accruing was as follows: March 31, 2026 December 31, 2025 (Dollars in thousands) Nonaccrual (a) Accruing Loans 90+ Days Past Due Nonaccrual (a) Accruing Loans 90+ Days Past Due Commercial real estate, other $ 7,363 $ — $ 4,056 $ 579 Commercial and industrial 4,558 105 8,045 126 Premium finance 455 1,820 573 2,477 Leases 9,909 77 11,063 542 Residential real estate 9,601 426 8,556 1,937 Home equity lines of credit 1,555 196 1,507 69 Consumer, indirect 2,994 107 2,718 286 Consumer, direct 279 115 368 140 Total loans, at amortized cost $ 36,714 $ 2,846 $ 36,886 $ 6,156 (a) There were $ 2.5 million and $ 1.8 million of nonaccrual loans for which there was no allowance for credit losses at March 31, 2026 and at December 31, 2025, respectively. 18 Table of Contents During the first three months of 2026, nonaccrual loans were flat when compared to at December 31, 2025, with decreases in nonaccrual leases and in commercial and industrial loans being offset by an increase in other commercial real estate loans. The decrease in accruing loans 90+ days past due at March 31, 2026, when compared to at December 31, 2025, was primarily due to reductions in residential real estate loans. The following table presents the aging of the amortized cost of past due loans: Loans Past Due Current Loans Total Loans (Dollars in thousands) 30 - 59 days 60 - 89 days 90 + Days Total March 31, 2026 Construction $ 3,229 $ — $ — $ 3,229 $ 266,342 $ 269,571 Commercial real estate, other 3,437 3,702 3,062 10,201 2,330,632 2,340,833 Commercial and industrial 1,820 3,416 3,253 8,489 1,638,308 1,646,797 Premium finance 1,147 600 2,275 4,022 224,861 228,883 Leases 3,726 2,260 9,120 15,106 335,120 350,226 Residential real estate 11,182 2,455 3,725 17,362 834,649 852,011 Home equity lines of credit 962 311 1,132 2,405 258,504 260,909 Consumer, indirect 6,808 1,144 1,456 9,408 690,446 699,854 Consumer, direct 582 240 262 1,084 118,775 119,859 Deposit account overdrafts — — — — 1,265 1,265 Total loans, at amortized cost $ 32,893 $ 14,128 $ 24,285 $ 71,306 $ 6,698,902 $ 6,770,208 December 31, 2025 Construction $ — $ — $ — $ — $ 300,941 $ 300,941 Commercial real estate, other 1,760 4,066 3,664 9,490 2,354,477 2,363,967 Commercial and industrial 1,600 1,329 7,780 10,709 1,525,046 1,535,755 Premium finance 2,767 2,956 3,050 8,773 244,302 253,075 Leases 9,966 3,560 11,187 24,713 340,936 365,649 Residential real estate 13,821 3,035 5,767 22,623 839,099 861,722 Home equity lines of credit 2,160 402 981 3,543 250,321 253,864 Consumer, indirect 8,752 1,726 1,550 12,028 688,554 700,582 Consumer, direct 752 165 431 1,348 118,990 120,338 Deposit account overdrafts — — — — 1,014 1,014 Total loans, at amortized cost $ 41,578 $ 17,239 $ 34,410 $ 93,227 $ 6,663,680 $ 6,756,907 Delinquency trends improved as 98.9 % of Peoples' loan portfolio was considered “current” at March 31, 2026, compared to 98.6 % at December 31, 2025. Pledged Loans Peoples has pledged certain loans secured by one-to-four family and multifamily residential mortgages, home equity lines of credit and commercial real estate loans under a blanket collateral agreement to secure borrowings from the FHLB. Peoples also has pledged eligible commercial and industrial loans to secure borrowings with the FRB. Loans pledged are summarized as follows: (Dollars in thousands) March 31, 2026 December 31, 2025 Loans pledged to FHLB $ 1,342,775 $ 1,347,242 Loans pledged to FRB 628,390 624,503 Credit Quality Indicators As discussed in "Note 1 Summary of Significant Accounting Policies" of the Notes to the Consolidated Financial Statements included in Peoples' 2025 Form 10-K, Peoples categorizes the majority of its loans into risk categories based upon an established risk grading matrix using a scale of 1 to 8. Loan grades are assigned at the time a new loan or lending commitment is extended by Peoples and may be changed at any time when circumstances warrant. Commercial loans to borrowers with an aggregate unpaid principal balance in excess of $ 1.0 million are reviewed at least on an annual basis for possible credit deterioration. Commercial leases, as well as loan relationships whose aggregate credit exposure to Peoples is equal to or less than $ 1.0 million, are reviewed on an event driven basis. Triggers for review include knowledge of adverse events affecting the borrower's business, receipt of financial statements indicating deteriorating credit quality or other similar events. Adversely classified loans are reviewed on a quarterly basis. A description of the general characteristics of the risk grades used by Peoples, follows: 19 Table of Contents “Pass” (grades 1 through 4): Loans in this risk category involve borrowers of acceptable-to-strong credit quality and risk who have the apparent ability to satisfy their loan obligations. Loans in this risk category would possess sufficient mitigating factors, such as adequate collateral or strong guarantors possessing the capacity to repay the loan if required, for any weakness that may exist. “Special Mention” (grade 5): Loans in this risk grade are the equivalent of the regulatory definition of “Other Assets Especially Mentioned.” Loans in this risk category possess some credit deficiency or potential weakness, which requires a high level of management attention. Potential weaknesses include declining trends in operating earnings and cash flows and/or reliance on a secondary source of repayment. If left uncorrected, these potential weaknesses may result in noticeable deterioration of the repayment prospects for the loan or in Peoples' credit position. “Substandard” (grade 6): Loans in this risk grade are inadequately protected by the borrower's current financial condition and payment capability or the collateral pledged, if any. Loans so classified have one or more well-defined weaknesses that jeopardize the orderly repayment of the loans. They are characterized by the distinct possibility that Peoples will sustain some loss if the weaknesses are not corrected. “Doubtful” (grade 7): Loans in this risk grade have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or orderly repayment in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable. Possibility of loss is extremely high, but because of certain important and reasonably specific factors that may work to the advantage and strengthening of the exposure, classification of each of these loans as an estimated loss is deferred until its more exact status may be determined. “Loss” (grade 8): Loans in this risk grade are considered to be non-collectible and of such little value that their continuance as bankable assets is not warranted. This does not mean a loan has absolutely no recovery value, but rather it is neither practical nor desirable to defer writing off the loan, even though partial recovery may be obtained in the future. Charge-offs against the allowance for credit losses are taken during the period in which the loan becomes uncollectible. Consequently, Peoples typically does not maintain a recorded investment in loans within this category. Consumer loans and other smaller-balance loans are evaluated and categorized as "substandard," "doubtful" or "loss" based upon the regulatory definition of these classes and consistent with regulatory requirements. Leases are categorized as "special mention", "substandard", "doubtful", or "loss" based upon delinquency status and the prospect of collecting the remaining net investment balance owed under the lease. All other loans not evaluated individually, nor meeting the regulatory conditions to be categorized as described above, would be considered as being "not rated." The following table summarizes the risk category of loans within Peoples' loan portfolio, including acquired loans, based upon the most recent analysis performed at March 31, 2026: Term Loans at Amortized Cost by Origination Year Revolving Loans Converted to Term (Dollars in thousands) 2026 2025 2024 2023 2022 Prior Revolving Loans Total Loans Construction Pass $ 4,759 $ 80,096 $ 89,883 $ 76,939 $ 916 $ 11,317 $ — $ — $ 263,910 Substandard — — 3,092 1,101 1,468 — — — 5,661 Total 4,759 80,096 92,975 78,040 2,384 11,317 — — 269,571 Current period gross charge-offs (a) — — — — — — — Commercial real estate, other Pass 36,577 347,903 171,905 332,057 344,684 942,868 41,881 — 2,217,875 Special mention — 1,107 32,375 173 1,594 12,341 — — 47,590 Substandard 4,818 — 15,084 1,618 7,185 46,583 70 — 75,358 Doubtful — — — — — 10 — — 10 Total 41,395 349,010 219,364 333,848 353,463 1,001,802 41,951 — 2,340,833 Current period gross charge-offs (a) — — — — — — — Commercial and industrial Pass 144,670 367,014 220,204 110,583 87,636 382,940 265,908 3,311 1,578,955 Special mention 208 43 5,983 70 588 970 24,695 — 32,557 Substandard 479 1,122 181 226 8,172 13,789 11,287 — 35,256 20 Table of Contents Term Loans at Amortized Cost by Origination Year Revolving Loans Converted to Term (Dollars in thousands) 2026 2025 2024 2023 2022 Prior Revolving Loans Total Loans Doubtful — — — — — 29 — — 29 Total 145,357 368,179 226,368 110,879 96,396 397,728 301,890 3,311 1,646,797 Current period gross charge-offs (a) 90 — 64 104 — 7 265 Premium Finance Pass 100,719 126,254 1,443 12 — — — — 228,428 Substandard — — 455 — — — — — 455 Total 100,719 126,254 1,898 12 — — — — 228,883 Current period gross charge-offs (a) — 18 34 — — — 52 Leases Pass 43,186 117,606 84,026 62,238 22,971 9,072 — — 339,099 Special mention 12 255 632 915 159 39 — — 2,012 Substandard — 508 744 1,926 579 137 — — 3,894 Doubtful — 108 841 2,824 912 536 — — 5,221 Total 43,198 118,477 86,243 67,903 24,621 9,784 — — 350,226 Current period gross charge-offs (a) — 201 1,467 2,598 352 193 4,811 Residential real estate Pass 18,762 102,952 64,705 54,248 75,916 524,036 — — 840,619 Substandard — 455 619 1,549 703 7,889 — — 11,215 Loss — 20 — — 62 95 — — 177 Total 18,762 103,427 65,324 55,797 76,681 532,020 — — 852,011 Current period gross charge-offs (a) — 4 39 — — 76 119 Home equity lines of credit Pass 2,740 57,214 50,570 30,929 32,541 76,986 8,520 663 259,500 Substandard — 10 15 277 299 798 — — 1,399 Loss — — — — — 10 — — 10 Total 2,740 57,224 50,585 31,206 32,840 77,794 8,520 663 260,909 Current period gross charge-offs (a) — — — — — 32 32 Consumer, indirect Pass 71,743 273,365 146,975 95,439 72,648 36,299 — — 696,469 Substandard — 901 607 647 603 587 — — 3,345 Loss — 1 7 5 1 26 — — 40 Total 71,743 274,267 147,589 96,091 73,252 36,912 — — 699,854 Current period gross charge-offs (a) 34 812 530 338 160 55 1,929 Consumer, direct Pass 23,685 44,783 20,935 12,841 10,103 7,164 — — 119,511 21 Table of Contents Term Loans at Amortized Cost by Origination Year Revolving Loans Converted to Term (Dollars in thousands) 2026 2025 2024 2023 2022 Prior Revolving Loans Total Loans Substandard — 38 53 89 64 85 — — 329 Loss — — — — 6 13 — — 19 Total 23,685 44,821 20,988 12,930 10,173 7,262 — — 119,859 Current period gross charge-offs (a) 111 40 24 22 2 5 204 Deposit account overdrafts 1,265 — — — — — — — 1,265 Current period gross charge-offs (a) 347 — — — — — 347 Total loans, at amortized cost 453,623 1,521,755 911,334 786,706 669,810 2,074,619 352,361 3,974 6,770,208 Total current period gross charge-offs (a) $ 582 $ 1,075 $ 2,158 $ 3,062 $ 514 $ 368 $ 7,759 (a) Current period gross charge-offs are for the three months ended as of March 31, 2026. The following table summarizes the risk category of loans within Peoples' loan portfolio, including acquired loans, based upon the then most recent analysis performed at December 31, 2025: Term Loans at Amortized Cost by Origination Year (Dollars in thousands) 2025 2024 2023 2022 2021 Prior Revolving Loans Revolving Loans Converted to Term Total Loans Construction Pass $ 81,441 $ 98,488 $ 99,069 $ 918 $ 6,618 $ 8,720 $ — $ 512 $ 295,254 Substandard — 3,092 1,113 1,482 — — — — 5,687 Total 81,441 101,580 100,182 2,400 6,618 8,720 — 512 300,941 Current period gross charge-offs (a) — — — — — — — Commercial real estate, other Pass 330,087 164,537 345,618 378,500 310,160 670,053 44,947 1,794 2,243,902 Special mention 83 22,415 2,580 1,696 4,460 13,067 133 — 44,434 Substandard — 8,042 1,188 15,727 17,170 32,945 549 87 75,621 Doubtful — — — — — 10 — — 10 Total 330,170 194,994 349,386 395,923 331,790 716,075 45,629 1,881 2,363,967 Current period gross charge-offs (a) — — — 174 — 121 295 Commercial and industrial Pass 381,903 230,861 115,712 95,158 92,556 290,243 248,204 7,621 1,454,637 Special mention 45 3,117 2,653 847 981 4,885 30,001 2,292 42,529 Substandard 130 251 263 8,745 12,196 6,407 10,562 5,423 38,554 Doubtful — — — — — 35 — — 35 Total 382,078 234,229 118,628 104,750 105,733 301,570 288,767 15,336 1,535,755 Current period gross charge-offs (a) — 19 161 202 202 1,167 1,751 Premium finance Pass 248,710 3,649 143 — — — — — 252,502 Substandard — 520 53 — — — — — 573 Total 248,710 4,169 196 — — — — — 253,075 22 Table of Contents Term Loans at Amortized Cost by Origination Year (Dollars in thousands) 2025 2024 2023 2022 2021 Prior Revolving Loans Revolving Loans Converted to Term Total Loans Current period gross charge-offs (a) 31 192 229 30 — — 482 Leases Pass 145,052 94,499 72,336 27,742 9,768 3,161 — — 352,558 Special mention 480 739 774 402 21 — — — 2,416 Substandard 228 1,001 3,386 785 334 — — — 5,734 Doubtful 48 1,406 2,249 864 374 — — — 4,941 Total 145,808 97,645 78,745 29,793 10,497 3,161 — — 365,649 Current period gross charge-offs (a) 204 4,240 8,297 6,717 1,450 496 21,404 Residential real estate Pass 104,910 66,847 56,842 77,533 117,758 426,547 — — 850,437 Substandard 183 501 1,540 663 924 7,378 — — 11,189 Loss — — — — — 96 — — 96 Total 105,093 67,348 58,382 78,196 118,682 434,021 — — 861,722 Current period gross charge-offs (a) — — 27 8 39 199 273 Home equity lines of credit Pass 54,398 51,042 32,052 34,382 24,293 56,416 21 3,560 252,604 Substandard — — 312 285 89 559 — — 1,245 Loss — — — 5 — 10 — — 15 Total 54,398 51,042 32,364 34,672 24,382 56,985 21 3,560 253,864 Current period gross charge-offs (a) — — 36 — — 5 41 Consumer, indirect Pass 292,512 164,565 108,928 84,987 27,026 19,049 — — 697,067 Substandard 655 648 708 667 412 305 — — 3,395 Loss 37 15 19 6 7 36 — — 120 Total 293,204 165,228 109,655 85,660 27,445 19,390 — — 700,582 Current period gross charge-offs (a) 1,128 2,030 1,948 1,121 350 147 6,724 Consumer, direct Pass 60,248 24,070 15,182 11,889 4,516 4,000 — — 119,905 Substandard 43 57 171 71 1 41 — — 384 Loss — 1 10 6 1 31 — — 49 Total 60,291 24,128 15,363 11,966 4,518 4,072 — — 120,338 Current period gross charge-offs (a) 344 143 98 75 19 23 702 Deposit account overdrafts 1,014 — — — — — — — 1,014 Current period gross charge-offs (a) 1,149 — — — — — 1,149 Total loans, at amortized cost $ 1,702,207 $ 940,363 $ 862,901 $ 743,360 $ 629,665 $ 1,543,994 $ 334,417 $ 21,289 $ 6,756,907 Current period gross charge-offs (a) $ 2,856 $ 6,624 $ 10,796 $ 8,327 $ 2,060 $ 2,158 $ 32,821 (a) Current period gross charge-offs are for the year ended as of December 31, 2025. 23 Table of Contents Collateral Dependent Loans Peoples has certain loans for which repayment is dependent upon the operation or sale of collateral, as the borrower is experiencing financial difficulty. The underlying collateral can vary based upon the type of loan. The following provides more detail about the types of collateral that secure collateral dependent loans: • Construction loans are typically secured by owner occupied commercial real estate or non-owner occupied investment real estate. Typically, owner occupied construction loans are secured by office buildings, warehouses, manufacturing facilities, and other commercial and industrial properties that are in process of construction. Non-owner occupied commercial construction loans are generally secured by multi-family complexes, warehouse buildings, industrial buildings, land under development, and other commercial real estate in process of construction. • Commercial real estate loans can be secured by either owner occupied commercial real estate or non-owner occupied investment commercial real estate. Typically, owner occupied commercial real estate loans are secured by office buildings, warehouses, manufacturing facilities, and other commercial and industrial properties occupied by operating companies. Non-owner occupied commercial real estate loans are generally secured by multifamily complexes, retail facilities, office buildings and complexes, warehouses, industrial buildings, land under development, as well as other commercial real estate. • Commercial and industrial loans are generally secured by equipment, inventory, accounts receivable, and other commercial property. • Residential real estate loans are typically secured by first mortgages, and in some cases could be secured by a second mortgage, on residential real estate property. • Home equity lines of credit are generally secured by second mortgages on residential real estate property. • Consumer loans are generally secured by automobiles, motorcycles, recreational vehicles and other personal property. Some consumer loans are unsecured and have no underlying collateral. • Leases are most often secured by commercial equipment and other essential business assets. • Premium finance loans are secured by the unearned portion of the insurance premium being financed. The following table details Peoples' amortized cost of collateral dependent loans: (Dollars in thousands) March 31, 2026 December 31, 2025 Construction $ 3,092 $ — Commercial real estate, other 11,364 687 Commercial and industrial 1,332 4,666 Leases 738 2,385 Total collateral dependent loans $ 16,526 $ 7,738 Collateral dependent loans increased at March 31, 2026, compared to at December 31, 2025, and were primarily impacted by one large relationship consisting of one other commercial real estate loan and one construction loan, totaling $ 7.4 million and $ 3.1 million, respectively. Modifications for Borrowers Experiencing Financial Difficulty As part of Peoples' loss mitigation activities, Peoples may agree to modify the contractual terms of a loan to a borrower experiencing financial difficulty. The most common modifications to the contractual terms of a loan to a borrower experiencing financial difficulty include an extension of the maturity date and a temporary period of interest-only payments. In addition to loan modifications, Peoples also provides other loss mitigation options, such as forbearance and repayment plans, to assist borrowers who experience financial difficulties. In assessing whether or not a borrower is experiencing financial difficulty, Peoples considers information currently available regarding the financial condition of the borrower. This information includes, but is not limited to, whether (1) the borrower is currently in payment default on any of the borrower's debt; (2) a payment default is probable in the foreseeable future without the modification; (3) the borrower has declared or is in the process of declaring bankruptcy; and (4) the borrower's projected cash flow is insufficient to satisfy contractual payments due under the original terms of the loan without a modification. The allowance for credit losses for loans modified for borrowers experiencing financial difficulty is determined based on the allowance for credit losses policy as described in "Note 1 Summary of Significant Accounting Policies" of the Notes to the Consolidated Financial Statements included in Peoples' 2025 Form 10-K. The following tables display the amortized cost of loans that were restructured during the three months ended March 31, 2026 and March 31, 2025, presented by loan classification. 24 Table of Contents (Dollars in thousands) Payment Deferral Term Extension Total Percentage of Total by Loan Category (a)(b)(c) During the Three Months Ended March 31, 2026 Commercial real estate, other $ — $ 952 $ 952 0.04 % Commercial and industrial 702 1,476 2,178 0.13 % Residential real estate — 130 130 0.02 % Total $ 702 $ 2,558 $ 3,260 0.05 % During the Three Months Ended March 31, 2025 Commercial real estate, other $ — $ 2,445 $ 2,445 0.11 % Commercial and industrial — 5,646 5,646 0.42 % Total $ — $ 8,091 $ 8,091 0.13 % (a) Based on the amortized cost basis as of period end, divided by the period end amortized cost basis of the corresponding class of financing receivable. (b) The table presented above excludes loans that were paid off or otherwise no longer included in the loan portfolio as of period end. (c) Each with --% is considered not meaningful. The following tables summarize the impacts of loan modifications and payment deferrals made to loans during the three months ended March 31, 2026 and March 31, 2025, presented by loan classification. Weighted-Average Term Extension (in months) During the Three Months Ended March 31, 2026 Commercial real estate, other 11 Commercial and industrial 8 Residential real estate 37 During the Three Months Ended March 31, 2025 Commercial real estate 3 Commercial and industrial 8 The following tables display the amortized cost of loans that received a completed modification or payment deferral within the previous 12 months and that had a payment default in the periods presented. For purposes of this disclosure, Peoples defines loans that had a payment default as loans that were 90 days or more past due following a modification. Term Extension (a) For the Three Months Ended March 31, 2026 Commercial real estate, other $ 281 Total loans that subsequently defaulted $ 281 For the Three Months Ended March 31, 2025 Commercial and industrial 117 Total loans that subsequently defaulted $ 117 (a) Represents the sum of amortized cost and gross charge-off as of period end. Excludes loans that liquidated either through foreclosure, deed-in-lieu of foreclosure, or a short sale. The following table displays an aging analysis of loans that were modified during the 12 months prior to March 31, 2026 and March 31, 2025, respectively, presented by classification and class of financing receivable. 25 Table of Contents As of March 31, 2026 (Dollars in thousands) 30-59 Days Delinquent 60-89 Days Delinquent 90+ Days Delinquent Total Delinquent Current Total Commercial real estate, other $ — $ — $ 281 $ 281 $ 952 $ 1,233 Commercial and industrial 42 — — 42 4,326 4,368 Residential real estate 181 — — 181 133 314 Home equity lines of credit — — — — 95 95 Total loans modified (a) $ 223 $ — $ 281 $ 504 $ 5,506 $ 6,010 (a) Represents the amortized cost basis as of period end. As of March 31, 2025 (Dollars in thousands) 30-59 Days Delinquent 60-89 Days Delinquent 90+ Days Delinquent Total Delinquent Current Total Commercial real estate, other $ 1,058 $ 69 $ — $ 1,127 $ 1,887 $ 3,014 Commercial and industrial — — 117 117 7,789 7,906 Residential real estate — — — — 15 15 Home equity lines of credit — — — — 158 158 Consumer, indirect — — 12 12 — 12 Total loans modified (a) $ 1,058 $ 69 $ 129 $ 1,256 $ 9,849 $ 11,105 (a) Represents the amortized cost basis as of period end. Allowance for Credit Losses As discussed in "Note 1 Summary of Significant Accounting Policies" of the Notes to the Consolidated Financial Statements included in Peoples' 2025 Form 10-K, Peoples estimates the allowance for credit losses using relevant available information, from both internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. In management's estimation of expected credit losses, Peoples uses a one-year reasonable and supportable forecast period across all segments. Following the reasonable and supportable forecast period, Peoples reverts the macroeconomic variables to their long run average over a four-quarter reversion period. 26 Table of Contents Changes in the allowance for credit losses for the three months ended March 31, 2026 and March 31, 2025 are summarized below: (Dollars in thousands) Beginning Balance, December 31, 2025 Provision for (Recovery of) Credit Losses (a) Charge-offs Recoveries Ending Balance, March 31, 2026 Construction $ 1,391 $ 121 $ — $ — $ 1,512 Commercial real estate, other 19,726 1,077 — — 20,803 Commercial and industrial 18,804 3,209 ( 265 ) 11 21,759 Premium finance 749 ( 17 ) ( 52 ) 6 686 Leases 16,475 3,083 ( 4,811 ) 557 15,304 Residential real estate 6,295 385 ( 119 ) 82 6,643 Home equity lines of credit 1,934 ( 271 ) ( 32 ) 12 1,643 Consumer, indirect 7,706 1,646 ( 1,929 ) 337 7,760 Consumer, direct 2,485 ( 151 ) ( 204 ) 26 2,156 Deposit account overdrafts 111 279 ( 347 ) 83 126 Total $ 75,676 $ 9,361 $ ( 7,759 ) $ 1,114 $ 78,392 (a) Amount does not include the provision for the allowance for credit losses on unfunded commitments. (Dollars in thousands) Beginning Balance, December 31, 2024 Provision for (Recovery of) Credit Losses (a) Charge-offs Recoveries Ending Balance, March 31, 2025 Construction $ 878 $ 278 $ — $ — $ 1,156 Commercial real estate, other 16,256 1,110 ( 215 ) 4 17,155 Commercial and industrial 13,283 ( 126 ) ( 380 ) 6 12,783 Premium finance 662 49 ( 71 ) 6 646 Leases 12,893 6,091 ( 5,654 ) 245 13,575 Residential real estate 6,491 388 ( 142 ) 49 6,786 Home equity lines of credit 1,792 71 — — 1,863 Consumer, indirect 8,576 1,776 ( 1,866 ) 210 8,696 Consumer, direct 2,396 213 ( 155 ) 20 2,474 Deposit account overdrafts 121 155 ( 277 ) 99 98 Total $ 63,348 $ 10,005 $ ( 8,760 ) $ 639 $ 65,232 (a) Amount does not include the provision for the allowance for credit losses on unfunded commitments. During the first quarter of 2026, Peoples recorded a total provision for credit losses on loans of $ 9.4 million, which was primarily driven by net charge-offs and a deterioration in the macroeconomic forecasts used within the current expected credit loss ("CECL") model. Net charge-offs for the first quarter of 2026 were $ 6.6 million, primarily driven by the North Star Leasing division. The increase in the allowance for credit losses at March 31, 2026 when compared to at December 31, 2025, was driven by a deterioration of economic forecasts. During the first quarter of 2025, Peoples recorded a provision for credit losses of $ 10.0 million, which was driven by net charge-offs. Net charge-offs for the first quarter of 2025 were $ 8.1 million, primarily driven by an increase in charge-offs on leases originated by the North Star Leasing division. The increase in the allowance for credit losses at March 31, 2025, when compared to at December 27 Table of Contents 31, 2024, was attributable to a deterioration of macroeconomic conditions used within the CECL model, an increase in reserves on individually analyzed loans, and loan growth. Peoples had recorded allowances for unfunded commitments of $ 2.8 million and $ 2.5 million as of March 31, 2026 and as of December 31, 2025, respectively. The allowance for unfunded commitments (also referred to as "unfunded commitment liability") is presented in the “Accrued expenses and other liabilities” line of the Unaudited Consolidated Balance Sheets. The change in the allowance for unfunded commitments is also reflected in the "Provision for (recovery of) credit losses" line of the Unaudited Consolidated Statements of Operations. Note 5 Goodwill and Other Intangible Assets Goodwill The following table details changes in the recorded amount of goodwill: For the Three Months Ended For the Year Ended (Dollars in thousands) March 31, 2026 December 31, 2025 Goodwill, beginning of period $ 363,199 $ 363,199 Goodwill recorded from acquisitions — — Goodwill, end of period $ 363,199 $ 363,199 Other Intangible Assets Other intangible assets were comprised of the following at March 31, 2026 , and at December 31, 2025 : (Dollars in thousands) Core Deposits Customer Relationships Indefinite-Lived Trade Names Total March 31, 2026 Gross intangibles $ 54,186 $ 38,470 $ 2,491 $ 95,147 Accumulated amortization ( 37,087 ) ( 30,605 ) — ( 67,692 ) Total acquisition-related intangibles $ 17,099 $ 7,865 $ 2,491 $ 27,455 Servicing rights 935 Non-compete agreements 12 Total other intangibles $ 28,402 December 31, 2025 Gross intangibles $ 54,186 $ 38,470 $ 2,491 $ 95,147 Accumulated amortization ( 36,154 ) ( 29,846 ) — ( 66,000 ) Total acquisition-related intangibles $ 18,032 $ 8,624 $ 2,491 $ 29,147 Servicing rights 957 Non-compete agreements 16 Total other intangibles $ 30,120 Th e following table details estimated aggregate future amortization of other intangible assets at March 31, 2026: (Dollars in thousands) Core Deposits Customer Relationships Non-Compete Agreements Total Remaining nine months of 2026 $ 2,802 $ 2,277 $ 12 $ 5,091 2027 3,043 2,188 — 5,231 2028 2,608 1,462 — 4,070 2029 2,359 971 — 3,330 2030 2,189 514 — 2,703 Thereafter 4,098 453 — 4,551 Total $ 17,099 $ 7,865 $ 12 $ 24,976 The weighted average amortization period of other intangible assets is 6.6 years. 28 Table of Contents Note 6 Deposits Peoples’ deposit balances were comprised of the following: (Dollars in thousands) March 31, 2026 December 31, 2025 Retail certificates of deposits ("CDs"): $100 or more $ 1,134,842 $ 1,143,787 Less than $100 833,599 840,004 Total Retail CDs 1,968,441 1,983,791 Interest-bearing deposit accounts 1,111,875 1,092,252 Savings accounts 918,557 887,402 Money market deposit accounts 958,413 945,313 Governmental deposit accounts 842,087 739,939 Brokered CDs 262,550 416,099 Total interest-bearing deposits 6,061,923 6,064,796 Non-interest-bearing deposits 1,586,514 1,545,428 Total deposits $ 7,648,437 $ 7,610,224 Uninsured deposits were $ 2.1 billion a t March 31, 2026 and $ 2.0 billion at December 31, 2025 . Uninsured deposit amounts are estimated based on the portion of the respective customer account balances that exceeded the FDIC limit of $250,000. Peoples pledges investment securities against certain governmental deposit accounts, which covered $ 678.1 million and $ 615.6 million of the uninsured deposit balances at March 31, 2026 and at December 31, 2025, respectively . Uninsured time deposits are broken out below by time remaining until maturity. (Dollars in thousands) March 31, 2026 December 31, 2025 3 months or less $ 204,079 $ 152,991 Over 3 to 6 months 111,087 170,299 Over 6 to 12 months 99,707 83,387 Over 12 months 23,980 35,897 Total $ 438,853 $ 442,574 The contractual maturities of CDs for each of the next five years, including the remainder of 2026, and thereafter are as follows: (Dollars in thousands) Retail Brokered Total Remaining nine months ending December 31, 2026 $ 1,597,701 $ 105,498 $ 1,703,199 Year ending December 31, 2027 353,572 87,275 440,847 Year ending December 31, 2028 8,363 23,944 32,307 Year ending December 31, 2029 4,897 45,833 50,730 Year ending December 31, 2030 3,409 — 3,409 Thereafter 499 — 499 Total CDs $ 1,968,441 $ 262,550 $ 2,230,991 At March 31, 2026, Peoples had five effective interest rate swaps, with an aggregate notional value of $ 45.0 million, a ll of which hedge interest payments on brokered CDs. The brokered CDs are expected to be extended every 90 days through the maturity dates of the swaps. Additional information regarding Peoples' interest rate swaps can be found in "Note 1 0 Derivative Financial Instruments." Note 7 Stockholders’ Equity The following table details the progression in Peoples’ common shares and treasury stock during the three months ended March 31, 2026: Common Shares Treasury Stock Shares at December 31, 2025 36,836,943 1,215,120 Changes related to stock-based compensation awards: Release of restricted common shares — 59,580 Cancellation of restricted common shares — 7,683 Grant of restricted common shares — ( 256,199 ) Grant of unrestricted common shares — — Purchase of treasury stock — 3,321 Disbursed out of treasury stock — ( 1,036 ) Common shares repurchased under share repurchase program — — Common shares issued under dividend reinvestment plan 11,659 — Common shares issued under compensation plan for Boards of Directors — ( 3,990 ) Common shares issued under employee stock purchase plan — ( 6,876 ) Shares at March 31, 2026 36,848,602 1,017,603 On January 28, 2021, Peoples' Board of Directors approved a share repurchase program authorizing Peoples to purchase up to an aggregate of $ 30.0 million of Peoples' outstanding common shares. As of March 31, 2026, Peoples had repurchased an aggregate of 501,999 common shares totaling $ 14.2 million under the share repurchase program. During the first quarters of 2026 and 2025, there were no purchases under the share repurchase program. Under Peoples' Amended Articles of Incorporation, Peoples is authorized to issue up to 50,000 preferred shares, in one or more series, having such voting powers, designations, preferences, rights, qualifications, limitations and restrictions as designated by Peoples' Board of Directors. At March 31, 2026, Peoples had no preferred shares issued or outstanding. On January 19, 2026, Peoples' Board of Directors declared a quarterly cash dividend of $ 0.41 per common share, payable on February 17, 2026, to shareholders of record on February 2, 2026. On April 20, 2026, People's Board of Directors declared a quarterly cash dividend of $ 0.42 per common share, payable on May 18, 2026 to shareholders of record on May 4, 2026. The following table details the cash dividends declared per common share during the first two quarters of 2026 as of April 2026 and the comparable periods of 2025: 2026 2025 First quarter $ 0.41 $ 0.40 Second quarter 0.42 0.41 Total dividends declared $ 0.83 $ 0.81 Accumulated Other Comprehensive (Loss) Income The following table details the change in the components of Peoples’ accumulated other comprehensive (loss) income during the three months ended March 31, 2026, as related items impact the income statement: (Dollars in thousands) Unrealized (Loss) Gain on Securities Unrealized Gain (Loss) on Cash Flow Hedges Accumulated Other Comprehensive (Loss) Income Balance, December 31, 2025 $ ( 71,019 ) $ 391 $ ( 70,628 ) Other comprehensive income (loss), net of reclassifications and tax ( 5,419 ) 5 ( 5,414 ) Balance, March 31, 2026 $ ( 76,438 ) $ 396 $ ( 76,042 ) Note 8 Employee Benefit Plans 29 Table of Contents Peoples maintains a retirement savings plan, or 401(k) plan, which covers substantially all employees. The plan provides participants with the opportunity to save for retirement on a tax-deferred basis or through Roth contributions. Since January 1, 2021, Peoples matches 100 % of participants’ contributions up to 6 % of the participants’ compensation. Matching contributions made by Peoples totaled $ 1.5 million during the three months ended March 31, 2026 and the three months ended March 31, 2025. Note 9 Earnings Per Common Share The calculations of basic and diluted earnings per common share were as follows: Three Months Ended March 31, (Dollars in thousands, except per common share data) 2026 2025 Net income available to common shareholders $ 29,006 $ 24,336 Less: Dividends paid on unvested common shares 200 210 Less: Undistributed income allocated to unvested common shares 54 37 Net earnings allocated to common shareholders $ 28,752 $ 24,089 Weighted-average common shares outstanding 35,108,649 34,895,723 Effect of potentially dilutive common shares 376,775 401,412 Total weighted-average diluted common shares outstanding 35,485,424 35,297,135 Earnings per common share: Basic $ 0.82 $ 0.69 Diluted $ 0.81 $ 0.68 Anti-dilutive common shares excluded from calculation: Restricted common shares 270,656 149,082 Note 10 Derivative Financial Instruments Peoples utilizes interest rate swap agreements as part of its asset/liability management strategy to help manage its interest rate risk position. The notional amount of the interest rate swaps does not represent amounts exchanged by the parties. The amount exchanged is determined by reference to the notional amount and the other terms of the individual interest rate swap agreements. Derivative Financial Instruments and Hedging Activities - Risk Management Objective of Using Derivative Financial Instruments Peoples is exposed to certain risks arising from both its business operations and economic conditions. Peoples principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. Peoples manages economic risks, including interest rate, liquidity and credit risk, primarily by managing the amount, sources and duration of its assets and liabilities. Peoples also manages interest rate risk through the use of derivative financial instruments. Specifically, Peoples enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known or expected cash amounts, the values of which are determined by interest rates. Peoples’ derivative financial instruments are used to manage differences in the amount, timing and duration of Peoples' known or expected cash receipts and its known or expected cash payments principally related to certain variable rate borrowings. Peoples also has interest rate derivative financial instruments that result from a service provided to certain qualifying customers and, therefore, are not used to manage interest rate risk in Peoples' assets or liabilities. Peoples manages a matched book with respect to customer-related derivative financial instruments in order to minimize its net risk exposure resulting from such transactions. Cash Flow Hedges of Interest Rate Risk Peoples' objectives in using interest rate derivative financial instruments are to add stability to interest income and expense, and to manage its exposure to interest rate movements. To accomplish these objectives, Peoples has entered into interest rate swaps as part of its interest rate risk management strategy. These interest rate swaps are designated as cash flow hedges and involve the receipt of variable rate amounts from a counterparty in exchange for Peoples making fixed payments. At March 31, 2026, Peoples had entered into five interest rate swap contracts with an aggregate notional value of $ 45.0 million. Peoples will pay a fixed rate of interest for up to three years while receiving a floating rate component of interest equal to the term SOFR. The interest received on the floating rate component is intended to offset the interest paid on rolling three-month brokered CDs or FHLB advances, which will continue to be rolled through the life of the interest rate swaps. At both March 31, 2026 and December 31, 2025, the interest rate swaps were 30 Table of Contents designated as cash flow hedges of $ 45.0 and $ 45.0 million, respectively, in brokered CDs, which are expected to be extended every 90 days through the maturity dates of the interest rate swaps. For derivative financial instruments designated as cash flow hedges and deemed highly effective, all changes in the fair value of each derivative financial instrument is reported in accumulated other comprehensive (loss) income ("AOCI") (outside of earnings), net of tax, and are reclassified to interest expense as interest payments are made or received on Peoples' variable-rate liabilities. Peoples assesses the effectiveness of each hedging relationship by comparing the changes in cash flows of the hedging derivative financial instrument with the changes in cash flows of the designated hedged transaction. The reset dates and the payment dates on the brokered CDs or FHLB advances are matched to the reset dates and payment dates on the receipt of the term SOFR of the swaps to ensure effectiveness of the cash flow hedge. For the three months ended March 31, 2026, and 2025, Peoples recorded reclassifications of gains to earnings of $ 0.2 million and $ 0.4 million, respectively. During the next 12 months, Peoples estimates that $ 0.4 million of AOCI will be reclassified as an addition to interest expense. The following table summarizes information about the interest rate swaps designated as cash flow hedges: (Dollars in thousands) March 31, 2026 December 31, 2025 Notional amount $ 45,000 $ 45,000 Weighted average pay rates 2.52 % 2.52 % Weighted average receive rates 3.90 % 3.73 % Weighted average maturity 1.1 years 1.3 years Pre-tax changes in fair value included in AOCI $ 518 $ 512 The following table presents changes in fair value and amounts reclassified from AOCI related to cash flow hedges and recorded in AOCI and in the Consolidated Statements of Comprehensive Income: Three Months Ended March 31, (Dollars in thousands) 2026 2025 Amount of gains (losses) recorded in AOCI, pre-tax $ 6 $ ( 661 ) The following table reflects the cash flow hedges, which are included in the Unaudited Consolidated Balance Sheets at fair value: March 31, 2026 December 31, 2025 (Dollars in thousands) Notional Amount Fair Value Notional Amount Fair Value Included in "Other assets": Interest rate swaps related to debt $ 45,000 $ 510 $ 45,000 $ 501 Non-Designated Hedges Peoples Bank maintains an interest rate protection program for commercial loan customers, which was established in 2010. Under this program, Peoples Bank originates variable rate loans with interest rate swaps, where the customer enters into an interest rate swap with Peoples Bank on terms that match the terms of the loan. By entering into the interest rate swap with the customer, Peoples Bank effectively provides the customer with a fixed rate loan while creating a variable rate asset for Peoples Bank. Peoples Bank offsets its exposure in the interest rate swap by entering into an offsetting interest rate swap with an unaffiliated institution. These interest rate swaps do not qualify as designated hedges; therefore, each interest rate swap is accounted for as a standalone derivative financial instrument. These interest rate swaps did not have a material impact on Peoples' results of operations or financial condition at or for the three months ended March 31, 2026, or at or for the year ended December 31, 2025. The following table reflects the non-designated hedges, which are included in the Unaudited Consolidated Balance Sheets at fair value: 31 Table of Contents March 31, 2026 December 31, 2025 (Dollars in thousands) Notional Amount Fair Value Notional Amount Fair Value Included in "Other assets": Interest rate swaps related to commercial loans $ 556,558 $ 14,357 $ 548,785 $ 13,907 Netting Adjustments (a) ( 5,522 ) ( 4,700 ) Net Derivative Assets on the Balance Sheet $ 556,558 $ 8,835 $ 548,785 $ 9,207 Included in "Accrued expenses and other liabilities": Interest rate swaps related to commercial loans $ 556,558 $ 9,111 $ 548,785 $ 11,548 Netting Adjustments (a) ( 221 ) ( 2,273 ) Net Derivatives Liabilities on the Balance Sheet $ 556,558 $ 8,890 $ 548,785 $ 9,275 (a) Netting adjustments represent the amounts recorded to convert our derivative assets and liabilities from a gross basis to a net basis in accordance with the applicable accounting guidance. The net basis takes into account the impact of master netting agreements that allow us to settle derivative contracts with a single counterparty on a net basis. Total derivative assets and liabilities include these netting adjustments. Pledged Collateral Peoples Bank pledges or receives collateral for all interest rate swaps. When the fair value of Peoples Bank interest rate swaps is in a net liability position, Peoples Bank must pledge collateral, and, when the fair value of Peoples Bank interest rate swaps is in a net asset position, the respective counterparties must pledge collateral. At March 31, 2026, Peoples Bank had $ 4.2 million of cash pledged, while counterparties had $ 3.9 million of cash pledged. Peoples Bank had $ 4.2 million cash pledged and counterparties had $ 2.1 million of cash pledged at December 31, 2025. Peoples Bank and the counterparties had no pledged investment securities at March 31, 2026 or at December 31, 2025. Note 11 Stock-Based Compensation Under the Peoples Bancorp Inc. Fourth Amended and Restated 2006 Equity Plan (the "2006 Equity Plan"), Peoples may grant, among other awards, nonqualified stock options, incentive stock options, restricted common share awards, stock appreciation rights, performance units and unrestricted common share awards to employees and non-employee directors. The total number of common shares available under the 2006 Equity Plan is 1,493,297 . Since February 2009, Peoples has granted restricted common shares to employees, and periodically to non-employee directors, subject to the terms and conditions prescribed by the 2006 Equity Plan. In general, common shares issued in connection with stock-based awards are issued from treasury shares to the extent available. If no treasury shares are available, common shares are issued from authorized but unissued common shares. Restricted Common Shares Under the 2006 Equity Plan, Peoples may award restricted common shares to officers, key employees and non-employee directors. In general, the restrictions on the restricted common shares awarded to officers and key employees expire after periods ranging from one to five years . Since 2018, common shares awarded to non-employee directors have vested immediately upon grant with no restrictions. In the first three months of 2026, Peoples granted an aggregate of 274,781 restricted common shares subject to performance-based vesting to officers and key employees with restrictions that will lapse three years after the grant date; provided that in order for the restricted common shares to vest in full, Peoples must have reported positive net income and maintained a well-capitalized status by regulatory standards for each of the three fiscal years preceding the vesting date. Awards issued in the first quarter of 2026 feature both time-based and performance-based award components, with the performance-based awards tied to Peoples' return on tangible common equity and total shareholder return performance over a three-year period relative to the results of other banks. The following table summarizes the changes to Peoples’ outstanding restricted common shares for the three months ended March 31, 2026: Time-Based Vesting Performance-Based Vesting Number of Common Shares Weighted-Average Grant Date Fair Value Number of Common Shares Weighted-Average Grant Date Fair Value Outstanding at January 1, 2026 127,672 $ 28.49 547,911 $ 30.08 Awarded 26,259 31.98 274,781 33.56 Released ( 5,047 ) 28.62 ( 159,631 ) 30.30 Forfeited ( 4,136 ) 33.61 ( 3,547 ) 31.25 Outstanding at March 31, 2026 144,748 $ 28.97 659,514 $ 31.47 32 Table of Contents The intrinsic value for restricted common shares released was $ 5.6 million for the three months ended March 31, 2026, compared to $ 4.8 million for the three months ended March 31, 2025. Stock-Based Compensation Peoples recognizes stock-based compensation, which is included as a component of Peoples’ salaries and employee benefit costs, for restricted and unrestricted common shares, as well as purchases made by participants in the employee stock purchase plan. For restricted common shares, Peoples recognizes stock-based compensation based on the estimated fair value of the awards expected to vest on the grant date. The estimated fair value is then expensed over the vesting period, which is normally three years . Peoples also has an employee stock purchase plan whereby employees can purchase Peoples' common shares at a discount of 15 %. The following table summarizes the amount of stock-based compensation expense and related tax benefit recognized for each period: Three Months Ended March 31, (Dollars in thousands) 2026 2025 Employee stock-based compensation expense: Stock grant expense $ 1,870 $ 2,430 Employee stock purchase plan expense 34 45 Total employee stock-based compensation expense 1,904 2,475 Non-employee director stock-based compensation expense 131 116 Total stock-based compensation expense 2,035 2,591 Recognized tax benefit ( 469 ) ( 604 ) Net stock-based compensation expense $ 1,566 $ 1,987 The fair value of restricted common share awards on the grant date is the market price of Peoples' common shares on that date. Total unrecognized stock-based compensation expense related to unvested restricted common share awards was $ 11.4 million at March 31, 2026, which will be recognized over a weighted-average period of 2.3 years. 33 Table of Contents Note 12 Revenue The following table details Peoples' revenue from contracts with customers: Three Months Ended March 31, (Dollars in thousands) 2026 2025 Insurance income: Commission and fees from sale of insurance policies (a) $ 4,376 $ 4,512 Performance-based commissions (b) 1,204 1,542 Trust and investment income: Fiduciary income (a) 3,076 2,915 Brokerage income (a) 2,529 2,146 Electronic banking income: Interchange income (b) 4,903 4,845 Promotional and usage income (a) 1,024 1,040 Deposit account service charges: Ongoing maintenance fees for deposit accounts (a) 1,881 1,643 Transaction-based fees (b) 2,386 2,372 Commercial loan swap fees (b) 310 537 Other non-interest income transaction-based fees (b) 674 415 Total revenue from contracts with customers $ 22,363 $ 21,967 Timing of revenue recognition: Services transferred over time $ 12,886 $ 12,256 Services transferred at a point in time 9,477 9,711 Total revenue from contracts with customers $ 22,363 $ 21,967 (a) Services transferred over time. (b) Services transferred at a point in time. Peoples records contract assets for income that has been recognized over a period of time for fulfillment of performance obligations to e-banking income and certain insurance income, but payment has not yet been received. This income typically relates to bonuses for which Peoples is eligible, but will not receive until a certain time in the future. Peoples records contract liabilities for payments received for commission income related to the sale of insurance policies, for which the performance obligations have not yet been fulfilled. The contract liabilities are recognized as income over time, during the period in which the performance obligations are fulfilled, which is over the insurance policy period. Peoples also records contract liabilities for bonuses received related to e-banking income, for which the performance obligations have not yet been fulfilled. These contract liabilities are recognized as income over time, during the period in which the performance obligations are fulfilled. The following table details the changes in Peoples' contract assets and contract liabilities for the three-month period ended March 31, 2026: Contract Assets Contract Liabilities (Dollars in thousands) Balance, January 1, 2026 $ 972 $ 5,848 Additional income receivable 1 — Additional deferred income — 3,062 Recognition of income previously deferred — ( 3,728 ) Balance, March 31, 2026 $ 973 $ 5,182 34 Table of Contents Note 13 Leases Peoples has elected certain practical expedients, in accordance with ASC 842 - Leases ("ASC 842"). As a lessor, Peoples has made an accounting policy election to exclude from the consideration in the contract, and from variable payments not included in the consideration in the contract, all sales and other similar taxes assessed. Peoples has also made an accounting policy election to account for each separate lease component of a contract and its associated non-lease components as a single lease component for all leases subject to ASC 842. Lessor Arrangements Peoples began originating leases with the acquisition of NSL in 2021 and grew its portfolio with the acquisition of Vantage in 2022. The leases for NSL are generally classified as sales-type leases, as the leases are structured with a dollar buyout, whereby the lessee pays one dollar at maturity of the lease to purchase the equipment. The leases for Vantage are generally classified as sales-type leases, as the payment structure and term triggered that accounting treatment, whereby either (i) the lease is structured as a fair market value buyout, whereby the lessee has the option to purchase the leased equipment at its fair market value at maturity of the lease, or (ii) the lessee purchases the leased equipment for one dollar at maturity of the lease. Vantage also originates operating leases, which are generally structured over a shorter term and do not meet the criteria of a sales-type lease. These leases do not typically contain residual value guarantees; however, Peoples reduces its residual asset risk by obtaining a security deposit from the lessee. As a lessor, Peoples originates commercial equipment leases either directly to the customer or indirectly through vendor programs. Equipment leases relate to healthcare, manufacturing, office, restaurant, information technology, general warehousing, storage equipment, vocational trucks and trailers, and other equipment. Leases structured with a fair market value buyout include an estimated residual value, which is assessed for impairment as part of the allowance for credit losses. Certain leases contain renewal options, which are not included in the lease term or lease receivable, as they are not considered by Peoples to be reasonable certain as they are at the discretion of the lessee. When Peoples originates an operating lease, it records an operating lease asset recognized in “Other assets” which is depreciated over its useful life. Operating leases assets are assessed for impairment consistent with Peoples’ fixed assets. Sales-type leases originated by Peoples, that Peoples has the positive intent and ability to hold for the foreseeable future or to maturity or payoff, are reported at the net investment of the lease, net of initial direct costs, charge-offs and an allowance for credit losses. Peoples considers leases past due if any required payments have not been received as of the date such payments were required to be made under the terms of the lease agreement. Upon detection of the reduced ability of a lessee to meet cash flow obligations, leases are typically charged down to the net realizable value, with the residual balance placed on nonaccrual status. Leases deemed to be uncollectable are charged against the allowance for credit losses, while recoveries of previously charged-off amounts are credited to the allowance for credit losses. Lease income noted in the table below includes (i) operating lease income, (ii) gains on the early termination of leases, net of any associated purchase accounting adjustments, (iii) month-to-month lease payments in excess of net investment in the lease, (iv) fees received for referrals, (v) gains and losses recognized on the sales of residual assets and (vi) syndication income. Additional information regarding Peoples' leases can be found in "Note 4 Loans and Leases." The table below details Peoples' lease income: Three Months Ended (Dollars in thousands) March 31, 2026 March 31, 2025 Interest and fees on leases (a) $ 8,578 $ 10,198 Lease income 4,581 3,468 Total lease income $ 13,159 $ 13,666 (a) Included in "Interest and fees on loans and leases" in the Unaudited Consolidated Statements of Operations. For additional information, see "Note 4 Loans and Leases" of the Notes to the Unaudited Condensed Consolidated Financial Statements. 35 Table of Contents The following table summarizes the net investment in leases, which is included in "Loans and leases, net of deferred fees and costs" on the Unaudited Consolidated Balance Sheets: (Dollars in thousands) March 31, 2026 December 31, 2025 Lease payments receivable, at amortized cost $ 374,558 $ 393,089 Estimated residual values 31,088 33,125 Initial direct costs 5,028 5,535 Deferred revenue ( 60,448 ) ( 66,100 ) Net investment in leases 350,226 365,649 Allowance for credit losses - leases ( 15,304 ) ( 16,475 ) Net investment in leases, after allowance for credit losses $ 334,922 $ 349,174 The following table summarizes the contractual maturities of leases: (Dollars in thousands) Balance Remaining nine months ending December 31, 2026 $ 77,584 Year ending December 31, 2027 75,556 Year ending December 31, 2028 86,635 Year ending December 31, 2029 59,616 Year ending December 31, 2030 55,349 Thereafter 19,818 Lease payments receivable, at amortized cost $ 374,558 Lessee Arrangements Peoples leases certain banking facilities and equipment under various agreements with original terms providing for fixed monthly payments over periods generally ranging from two to 30 years. Certain leases may include options to extend or terminate the lease. Only those renewal and termination options which Peoples is reasonably certain of exercising are included in the calculation of the lease liability. Certain leases contain rent escalation clauses calling for rent increases over the term of the lease, which are included in the calculation of the lease liability. At March 31, 2026, Peoples did not have any leases that met the criteria for finance leases. Right of Use ("ROU") assets represent the right to use an underlying asset for the lease term and lease liabilities represent an obligation to make lease payments arising from the lease. Operating lease ROU assets and lease liabilities are recognized at the commencement or the remeasurement date of a lease based on the present value of lease payments over the remaining lease term. Operating lease ROU assets include lease payments made at or before the commencement date and initial indirect costs. Operating lease ROU assets are presented net of any lease incentives. Short-term leases of certain facilities and equipment, with lease terms of 12 months or less, are recognized on a straight-line basis over the lease term and do not have an ROU asset or lease liability. The table below details Peoples' lease expense which is included in "Net occupancy and equipment expense" in the Unaudited Consolidated Statements of Operations: Three Months Ended (Dollars in thousands) March 31, 2026 March 31, 2025 Operating lease expense $ 623 $ 713 Short-term lease expense 385 363 Variable lease expense 10 9 Total lease expense $ 1,018 $ 1,085 Lease payments are discounted using Peoples’ incremental borrowing rate, consistent with what Peoples would pay to borrow on a collateralized basis over a term similar to each lease. 36 Table of Contents The following table details the ROU assets, the lease liabilities and other information related to Peoples' operating leases at the dates shown: (Dollars in thousands) March 31, 2026 December 31, 2025 ROU assets: Other assets $ 8,815 $ 9,340 Lease liabilities: Accrued expenses and other liabilities $ 9,387 $ 9,912 Other information: Weighted-average remaining lease term 8.7 years 8.7 years Weighted-average discount rate 4.17 % 4.16 % Additions for ROU assets obtained during the year $ — $ 1,333 During both the three months ended March 31, 2026 and 2025, Peoples paid cash of $ 0.6 million and $ 0.7 million for operating leases, respectively. The following table summarizes the maturity of remaining lease liabilities: (Dollars in thousands) Balance Remaining nine months ending December 31, 2026 $ 1,789 Year ending December 31, 2027 2,146 Year ending December 31, 2028 1,625 Year ending December 31, 2029 1,173 Year ending December 31, 2030 671 Thereafter 3,937 Total undiscounted lease payments $ 11,341 Imputed interest $ ( 1,954 ) Total lease liabilities $ 9,387 Note 14 Subsequent Events The Company has evaluated all events occurring after March 31, 2026 through April 30, 2026, the date the interim unaudited financial statements for the period ending March 31, 2026 were available to be issued, to determine whether any event required either recognition or disclosure in the financial statements. Merger Agreement On April 21, 2026 Peoples announced the signing of a definitive agreement and plan of merger (the "Merger Agreement") pursuant to which Peoples will acquire Citizens National Corporation (“Citizens"), a bank holding company headquartered in Paintsville, Kentucky, and the parent company of Citizens Bank of Kentucky, Inc. (“Citizens Bank”), in a cash and stock transaction. Under the terms of the Merger Agreement, Citizens will merge with and into Peoples (the “Merger”), and Citizens Bank will subsequently merge with and into Peoples’ wholly owned subsidiary, Peoples Bank, in a transaction valued at approximately $ 76.6 million. As of March 31, 2026, Citizens had, on a consolidated basis, $ 686 million in total assets, which included $ 342 million in gross loans, and $ 586 million in total deposits. According to the terms of the Merger Agreement, which has been unanimously approved by the Boards of Directors of both companies, shareholders of Citizens will receive 2.10 shares of Peoples common stock plus $ 8.00 in cash for each share of Citizens’ common stock. The transaction is intended to qualify as a tax-free reorganization for federal income tax purposes and to provide a tax-free exchange for Citizens stockholders for the stock consideration received. The acquisition is expected to close during the second half of 2026, subject to the satisfaction of customary closing conditions, including regulatory approvals and the approval of the shareholders of Citizens. 37 Table of Contents