PEOPLES BANCORP INC 10-Q

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Management’s Discussion and Analysis (“MD&A”) represents an overview of the results of operations and financial condition of Peoples at and for the three months ended March 31, 2026 and March 31, 2025. This MD&A should be read in conjunction with the Unaudited Condensed Consolidated Financial Statements and the Notes thereto. Certain statements in this Form 10-Q, which are not historical fact, are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. These forward-looking statements are identified by the fact they are not historical facts and include words such as "anticipate," "estimate," "may," "feel," "expect," "believe," "plan," "will," "will likely," "would," "should," "could," "project," "goal," "target," "potential," "seek," "intend," "continue," "remain," and similar expressions. These forward-looking statements reflect management's current expectations based on all information available to management and its knowledge of Peoples' business and operations. Additionally, Peoples' financial condition, results of operations, plans, objectives, future performance and business are subject to risks and uncertainties that may cause actual results to differ materially. These risks and uncertainties include, but are not limited to: (1) the effects of interest rate policies, including any changes to such policies that may result from potential changes in the composition of the Federal Reserve Board, changes in the interest rate environment due to economic conditions and/or the fiscal and monetary policy measures undertaken by the U.S. government and the Federal Reserve Board, including changes in the Federal Funds Target Rate, in response to such economic conditions, which may adversely impact interest rates, the interest rate yield curve, interest margins, loan demand and interest rate sensitivity; (2) the effects of inflationary pressures on borrowers’ liquidity and ability to repay; (3) the success, impact, and timing of the implementation of Peoples' business strategies and Peoples' ability to manage strategic initiatives, including the interest rate policies of the Federal Reserve Board, the completion and successful integration of acquisitions, including the pending merger with Citizens National Corporation (the "Citizens Merger"), and the expansion of commercial and consumer lending activities; (4) competitive pressures among financial institutions, or from non-financial institutions, which may increase significantly, including product and pricing pressures, which can in turn impact Peoples' credit spreads, changes to third-party relationships and revenues, changes in the manner of providing services, customer acquisition and retention pressures, and Peoples' ability to attract, develop and retain qualified professionals; (5) uncertainty regarding the nature, timing, cost, and effect of legislative or regulatory changes or actions, or deposit insurance premium levels, promulgated and to be promulgated by governmental and regulatory agencies in the State of Ohio, the FDIC, the Federal Reserve Board and the Consumer Financial Protection Bureau, which may subject Peoples, its subsidiaries, or one or more acquired companies to a variety of new and more stringent legal and regulatory requirements; (6) the effects of easing restrictions on participants in the financial services industry; (7) current and future local, regional, national and international economic conditions (including the impact of persistent inflation, supply chain issues or labor shortages, supply-demand imbalances affecting local real estate prices, high unemployment rates in the local or regional economies in which Peoples operates and/or the U.S. economy generally, the current or future U.S. government shutdown, an increasing federal government budget deficit, the failure of the federal government to raise the federal debt ceiling, potential or imposed tariffs, a U.S. withdrawal from or significant renegotiation of trade agreements, trade wars and other changes in trade regulations, changes in the relationship of the U.S. and U.S. global trading partners), and changes in the federal, state, and local governmental policy and the impact these conditions may have on Peoples, Peoples' customers and Peoples' counterparties, and Peoples' assessment of the impact, which may be different than anticipated; (8) Peoples may issue equity securities in connection with future acquisitions, which could cause ownership and economic dilution to Peoples' current shareholders; (9) changes in prepayment speeds, loan originations, levels of nonperforming assets, delinquent loans, charge-offs, and customer and other counterparties' performance and creditworthiness generally, which may be less favorable than expected in light of recent inflationary pressures and continued elevated interest rates, and may adversely impact the amount of interest income generated; (10) Peoples may have more credit risk and higher credit losses to the extent there are loan concentrations by location or industry of borrowers or collateral; (11) future credit quality and performance, including expectations regarding future credit losses and the allowance for credit losses; 38 Table of Contents (12) changes in accounting standards, policies, estimates or procedures may adversely affect Peoples' reported financial condition or results of operations; (13) the impact of assumptions, estimates and inputs used within models, which may vary materially from actual outcomes, including under the CECL model; (14) adverse changes in the conditions and trends in the financial markets, including recent inflationary pressures, and the impacts of potential or imposed tariffs on markets, which may adversely affect the fair value of securities within Peoples' investment portfolio, the interest rate sensitivity of Peoples' consolidated balance sheet, and the income generated by Peoples' trust and investment activities; (15) the volatility from quarter to quarter of mortgage banking income, whether due to interest rates, demand, the fair value of mortgage loans, or other factors; (16) Peoples' ability to receive dividends from Peoples' subsidiaries; (17) Peoples' ability to maintain required capital levels and adequate sources of funding and liquidity; (18) the impact of larger or similar-sized financial institutions encountering problems, such as the failure in 2024 of Republic First Bank, and closures in 2023 of Silicon Valley Bank in California, Signature Bank in New York, and First Republic Bank in California, which may adversely affect the banking industry and/or Peoples' business generation and retention, funding and liquidity, including Peoples' continued ability to grow deposits or maintain adequate deposit levels, and may further result in potential increased regulatory requirements, increased reputational risk and potential impacts to macroeconomic conditions; (19) Peoples' ability to secure confidential information and avoid misappropriation of confidential information in connection with the delivery of products and services through the use of computer systems and telecommunications networks, including those of Peoples' third-party vendors and other service providers, which may prove inadequate, and could adversely affect customer confidence in Peoples and/or result in Peoples incurring a financial loss; (20) Peoples' ability to anticipate and respond to technological changes, and Peoples' reliance on, and the potential failure of, a number of third-party vendors to perform as expected, including Peoples' primary core banking system provider, which can impact Peoples' ability to respond to customer needs and meet competitive demands; (21) operational issues stemming from and/or capital spending necessitated by the potential need to adapt to industry changes in information technology systems on which Peoples and Peoples' subsidiaries are highly dependent; (22) changes in consumer spending, borrowing and saving habits, whether due to changes in retail distribution strategies, consumer preferences and behavior, changes in business and economic conditions, legislative or regulatory initiatives, or other factors, which may be different than anticipated; (23) the adequacy of Peoples' internal controls and risk management program in the event of changes in strategic, reputational, market, economic, operational, cybersecurity, compliance, legal, asset/liability repricing, liquidity, credit and interest rate risks associated with Peoples' business; (24) the impact on Peoples' businesses, personnel, facilities, or systems of losses related to acts of fraud, theft, misappropriation or violence; (25) the impact on Peoples' businesses, as well as on the risks described above, of various domestic or international widespread natural or other disasters including severe weather events, pandemics, cybersecurity attacks, system failures, civil unrest, military or terrorist activities or international conflicts including Russia's ongoing war on Ukraine, the continued U.S. political and military presence in Venezuela, and the conflict in Iran (and the resulting disruptions in oil, energy and other commodity markets and supply chains); (26) the potential deterioration of the U.S. economy due to financial, political or other shocks; (27) the potential influence on the U.S. financial markets and economy from the effects of climate change, including any enhanced regulatory, compliance, credit and reputational risks and costs; (28) the impact on Peoples' businesses and operating results of any costs associated with obtaining rights in intellectual property claimed by others and adequately protecting Peoples' intellectual property; (29) risks and uncertainties associated with Peoples' entry into new geographic markets and risks resulting from Peoples' inexperience in these new geographic markets; (30) changes in laws or regulations imposed by Peoples' regulators impacting Peoples' capital actions, including dividend payments and share repurchases; 39 Table of Contents (31) the vulnerability of Peoples' network and online banking portals, and the systems of parties with whom Peoples contracts, to unauthorized access, computer viruses, phishing schemes, spam attacks, human error, natural disasters, power loss and other security breaches; (32) regulatory and legal matters, including the failure to resolve any outstanding matters on a timely basis and the potential of new regulatory matters, litigation, or other legal actions, which may result in, among other things, additional costs, fines, penalties, restrictions on our business activities, reputational harm, or other adverse consequences; (33) the impact on Peoples of increased political and regulatory scrutiny of corporate environmental, social and governance ("ESG") practices; (34) the effect of a fall in stock market prices on Peoples' asset and wealth management business (35) the risk that the proposed Citizens Merger is not completed as a result of a failure to satisfy the conditions to the Citizens Merger, including receipt of required regulatory, shareholder and other approvals; (36) the possibility that the anticipated benefits of the proposed Citizens Merger, including expected revenue synergies and cost savings, will not be realized or will not be realized within expected time periods; (37) Peoples' ability to integrate the Citizens Merger, which may be unsuccessful, or may be more difficult, time-consuming or costly than expected; (38) the risk that energy tax credits purchased and used by People to reduce tax liabilities will be disallowed by the IRS; and (39) other risk factors relating to the banking industry or Peoples as detailed from time to time in Peoples' reports filed with the Securities and Exchange Commission (the "SEC"), including those risk factors included in the disclosures under the heading "ITEM 1A. RISK FACTORS" of Peoples' 2025 Form 10-K and under the heading "Part II" of this Form 10-Q. Peoples encourages readers of this Form 10-Q to understand forward-looking statements to be strategic objectives rather than absolute targets of future performance. Peoples undertakes no obligation to update any forward-looking statements to reflect events or circumstances after the filing of this Form 10-Q or to reflect the occurrence of unanticipated events, except as required by applicable legal requirements. Copies of documents filed with the SEC are available free of charge at the SEC's website at http://www.sec.gov and/or from Peoples' website – www.peoplesbancorp.com under the “Investor Relations” section. All forward-looking statements speak only as of the filing date of this Form 10-Q and are expressly qualified in their entirety by the cautionary statements. Although management believes the expectations in these forward-looking statements are based on reasonable assumptions within the bounds of management’s knowledge of Peoples’ business and operations, it is possible that actual results may differ materially from these projections. This discussion and analysis should be read in conjunction with the Audited Consolidated Financial Statements, and Notes to the Audited Consolidated Financial Statements, contained in Peoples’ 2025 Form 10-K, as well as the Unaudited Condensed Consolidated Financial Statements, Notes to the Unaudited Condensed Consolidated Financial Statements, ratios, statistics and discussions contained elsewhere in this Form 10-Q. Business Overview The following discussion and analysis of Peoples’ Unaudited Condensed Consolidated Financial Statements is presented to provide insight into management’s assessment of the financial condition and results of operations. Peoples is a diversified financial services holding company that makes available a complete line of banking, trust and investment, insurance, premium financing and equipment leasing solutions through its subsidiaries. Peoples' business activities are currently limited to one reporting unit and reportable operating segment, which is community banking. Peoples provides services through traditional offices, automated teller machines ("ATMs"), interactive teller machines ("ITMs"), mobile banking, telephone and internet-based banking. Peoples offers a complete array of insurance products through Peoples Insurance, a subsidiary of Peoples Bank. Brokerage services are offered by Peoples exclusively through an unaffiliated registered broker-dealer located at Peoples Bank's offices. Peoples Bank offers insurance premium finance lending nationwide through its Peoples Premium Finance and Peoples Life Premium Finance divisions. Peoples also offers lease financing through its North Star Leasing division and through Vantage, a subsidiary of Peoples Bank. As of March 31, 2026, Peoples had 144 locations, including 127 full-service bank branches in Ohio, Kentucky, West Virginia, Virginia, Washington D.C. and Maryland. Peoples Bank is subject to regulation and examination primarily by the Ohio Division of Financial Institutions (the "ODFI"), the FRB of Cleveland and the FDIC. Peoples Bank must also follow the regulations promulgated by the Consumer Financial Protection Bureau (the "CFPB"), which regulates consumer financial products and services and certain financial services providers. Peoples Insurance is subject to regulation by the Ohio Department of Insurance and the state insurance regulatory agencies of those states in which Peoples Insurance may do business. 40 Table of Contents Critical Accounting Policies The accounting and reporting policies of Peoples conform to US GAAP. The preparation of the financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could materially differ from those estimates. Note 1 of the Notes to the Unaudited Condensed Consolidated Financial Statements describes Peoples' significant accounting policies. Management has identified the accounting policies that, due to the judgments, estimates and assumptions inherent in those policies, are critical to understanding Peoples’ Unaudited Condensed Consolidated Financial Statements, and this MD&A at March 31, 2026, which have been disclosed in Peoples' 2025 Form 10-K and updated as necessary in "Note 1 Summary of Significant Accounting Policies" in the Notes to the Unaudited Condensed Consolidated Financial Statements included in this Form 10-Q. This MD&A should be read in conjunction with the policies disclosed in Peoples’ 2025 Form 10-K. New Accounting Guidance Pending Adoption ASU 2025-08 - Financial Instruments - Credit Losses (Topic 326): Purchased Loans: The FASB issued an Accounting Standards Update (“ASU”) 2025-08 on November 12, 2025. The amendments “expand the population of acquired financial assets subject to the gross-up approach in Topic 326.” Specifically, the ASU expands the scope to include purchased “seasoned” loans, which are evaluated after purchase credit deteriorated (“PCD”) loans have been identified. These seasoned loans are defined as non-PCD loans that are obtained in a business combination accounted for using the acquisition method or non-PCD loans that are (i) obtained through a transfer that is not a business combination accounted for using the acquisition method or (ii) initially recognized through the consolidation of a variable interest entity. The ASU applies to all public entities subject to the guidance in Topic 326, including public business entities, privates companies, and not-for-profit entities. The amendments in this update apply “prospectively to loans that are acquired on or after the initial application date.” The amendments in ASU 2025-08 are effective for all entities for fiscal years beginning after December 15, 2026 and interim periods within those annual reporting periods, with early adoption permitted. Peoples is currently evaluating the impact of this guidance. Summary of Recent Transactions and Events The following is a summary of recent transactions and events that have impacted or are expected to impact Peoples’ results of operations or financial condition: ◦ On April 21, 2026, Peoples announced the signing of a definitive agreement and plan of merger 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 agreement and plan of merger, Citizens will merge with and into Peoples, and Citizens Bank will subsequently merge with and into Peoples Bank, in a transaction valued at approximately $76.6 million. ◦ For the first quarter of 2026, Peoples recorded a provision for credit losses of $9.7 million, compared to a provision for credit losses of $8.1 million for the linked quarter and a provision for credit losses of $10.2 million for the first quarter of 2025. The provision for credit losses for the first quarter of 2026 was primarily driven by net charge-offs and a deterioration in the macroeconomic forecasts used within the CECL model. The provision for credits losses for the linked quarter was primarily driven by (i) net charge-offs, (ii) loan growth, and (iii) a slight deterioration in the economic forecasts used within the CECL model, partially offset by reductions in reserves for individually analyzed loans and leases. The provision for credit losses for the first quarter of 2025 was primarily driven by net charge-offs. For more information, please refer to the section titled "RESULTS OF OPERATIONS - Provision for Credit Losses" found later in this MD&A. ◦ To combat the effects of ongoing inflationary pressures, the Federal Reserve Board increased the Federal Funds Target Rate range to 0.25% to 0.50% beginning on March 16, 2022, and continued to raise rates up to 5.25% to 5.50% on July 27, 2023. This rate remained unchanged until the latter half of 2024, where multiple rate cuts reduced the rate down to 4.25% to 4.50%. The Federal Reserve Board cut interest rates three times during 2025, further reducing the rate to 3.50% to 3.75%. The Federal Reserve Board has signaled that future rate reductions continue to be a possibility. The impact of these transactions and events, where material, is discussed in the applicable sections of this MD&A. EXECUTIVE SUMMARY Peoples reported net income of $29.0 million for the first quarter of 2026, representing earnings per diluted common share of $0.81. In comparison, Peoples reported net income of $31.8 million, representing earnings per diluted common share of $0.89, for the fourth quarter of 2025, and net income of $24.3 million, representing earnings per diluted common share of $0.68, for the first quarter of 2025. Non-core items negatively impacted earnings per diluted common share by $0.01 for the first quarter of 2026, $0.04 for the fourth quarter of 2025, and $0.01 for the first quarter of 2025. Net interest income was $90.4 million for the first quarter of 2026, a decrease of $0.6 million when compared to the linked quarter. Net interest margin was 4.16% for the first quarter of 2026, compared to 4.12% for the linked quarter. The decrease in net 41 Table of Contents interest income was primarily driven by a decrease in accretion income coupled with fewer days in the quarter compared to the linked quarter. The increase in net interest margin was driven by a reduction in deposit costs. Net interest income for the first quarter of 2026 increased $5.2 million, or 6%, compared to the first quarter of 2025. Net interest margin increased 4 basis points when compared to the first quarter of 2025. The increase in net interest income compared to the first quarter of 2025 was driven by lower deposit and borrowing costs. Accretion income, net of amortization expense, was $1.3 million for the first quarter of 2026, $1.8 million for the fourth quarter of 2025 and $3.5 million for the first quarter of 2025, which added 6 basis points, 8 basis points and 17 basis points, respectively, to net interest margin. The decrease in accretion income for the first quarter of 2026 when compared to the first quarter of 2025 was driven by less accretion recognized in the current period from the 2023 merger with Limestone Bancorp, Inc. ("Limestone Merger"). The provision for credit losses was $9.7 million for the first quarter of 2026, compared to a provision for credit losses of $8.1 million for the linked quarter and a provision for credit losses of $10.2 million for the first quarter of 2025. The provision for credit losses for the first quarter of 2026 was primarily driven by net charge-offs and a deterioration in the economic forecasts used within the CECL model. The provision for credits losses for the linked quarter was primarily driven by (i) net charge-offs, (ii) loan growth, and (iii) a slight deterioration in the economic forecasts used within the CECL model, partially offset by reductions in reserves for individually analyzed loans and leases. The provision for credit losses for the first quarter of 2025 was primarily driven by net charge-offs. Net charge-offs for the first quarter of 2026 were $6.6 million, or 0.40% of average total loans annualized, compared to net charge-offs of $7.4 million, or 0.44% of average total loans annualized, for the linked quarter and net charge-offs of $8.1 million, or 0.52% of average total loans annualized, for the first quarter of 2025. For additional information on credit trends and the allowance for credit losses, see the "FINANCIAL CONDITION - Allowance for Credit Losses" section below. Net gains and losses include gains and losses on investment securities, asset disposals and other transactions, which are included in total non-interest income on the Consolidated Statements of Operations. The net loss realized during the first quarter of 2026 was $0.4 million, compared to a net loss of $2.0 million for the linked quarter and a net loss of $0.4 million for the first quarter of 2025. The net losses for the first quarter of 2026 and for the first quarter of 2025 were driven by losses on repossessed assets. The net loss for the linked quarter was driven by a $0.9 million net loss on the sale of an OREO property and a $0.8 million loss on the redemption of subordinated debt. Total non-interest income, excluding net gains and losses, for the first quarter of 2026 increased $0.4 million compared to the linked quarter. The increase in non-interest income, excluding net gains and losses, was primarily impacted by an increase of $1.1 million in insurance income, driven by annual performance-based commissions typically received in the first quarter of each year, partially offset by a decrease of $0.4 million in electronic banking income and $0.4 million in deposit account service charges, which are seasonally higher in the fourth quarter of each year. Compared to the first quarter of 2025, total non-interest income, excluding net gains and losses, increased $1.2 million, due to an increase of $1.1 million in lease income, driven by an increase in operating lease income, and an increase of $0.5 million in trust and investment income, which was driven by an increase in assets under administration and management, partially offset by a decrease of $0.5 million in insurance income, driven by lower annual performance-based commissions. Total non-interest expense increased $0.3 million for the three months ended March 31, 2026, compared to the linked quarter. The increase in total non-interest expense was primarily due to increases of $0.7 million in salaries and employee benefit costs, driven by up-front expense on stock grants to retirement-eligible employees and employer health savings account contributions, $0.3 million in operating lease expense, and $0.2 million in net occupancy and equipment expense. These increases were partially offset by decreases of $0.5 million in amortization of other intangible assets and $0.4 million in professional fees, driven by lower legal expenses. Compared to the first quarter of 2025, total non-interest expense increased $0.8 million, or 1%. The increase in total non-interest expense was primarily driven by increases of $0.8 million in operating lease expense, $0.6 million in net occupancy and equipment expense, driven by higher property taxes, and $0.5 million in data processing and software expense, due to costs associated with recent technology projects, partially offset by a decreases of $0.5 million in amortization of other intangible assets and $0.5 million in other non-interest expense, driven by lower corporate expenses. The efficiency ratio for the first quarter of 2026 was 58.6%, compared to 57.8% for the linked quarter and 60.7% for the first quarter of 2025. The efficiency ratio increased slightly compared to the linked quarter mainly as the result of higher non-interest expense, driven by increased salaries and employee benefits costs. Peoples recorded income tax expense of $8.3 million with an effective tax rate of 22.3% for the first quarter of 2026, compared to income tax expense of $6.2 million with an effective tax rate of 16.4% for the linked quarter, and income tax expense of $7.0 million with an effective tax rate of 22.4% for the first quarter of 2025. T he increase in income tax expense and the effective tax rate when compared to the linked quarter was impacted by updates to state apportionment in the fourth quarter of 2025, reducing expense by $0.9 million, and a $0.7 million benefit relating to tax credits purchased in the linked quarter. The increase in income tax expense when compared to the quarter ended March 31, 2025 was driven by higher pretax income. Total assets were $9.65 billion as of March 31, 2026, $9.65 billion at December 31, 2025, and $9.25 billion at March 31, 2025. Total assets at March 31, 2026 remained flat when compared to at December 31, 2025 due to an increase in total loan and leases 42 Table of Contents largely offset by a decrease in total investment securities. Total assets at March 31, 2026 increased compared to at March 31, 2025 due to increases of $341.7 million in total loans and leases and $83.1 million in total investment securities. Total liabilities were $8.43 billion at March 31, 2026, down slightly from $8.44 billion at December 31, 2025, and up from $8.11 billion at March 31, 2025. The decrease in total liabilities when compared to at December 31, 2025 was primarily due to a decrease of $24.4 million in short-term borrowings and a decrease of $18.7 million in long-term borrowings, partially offset by an increase of $38.2 million in period-end total deposits. The increase in total liabilities when compared to at March 31, 2025 was primarily due increases of $486.6 million in short-term borrowings, partially offset by a decrease of $86.3 million in period-end deposits. The decrease in total deposits was primarily driven by a decrease of $196.4 million in brokered deposits, partially offset by increases of $60.2 million in non-interest bearing deposits, $24.7 million in interest-bearing demand accounts, and $24.0 million in savings accounts. Total stockholders' equity at March 31, 2026 increased $9.4 million compared to at December 31, 2025, which was primarily due to net income for the quarter of $29.0 million, partially offset by dividends paid of $14.7 million and an increase of $5.4 million in accumulated other comprehensive loss. Accumulated unrealized losses related to the available-for-sale investment securities portfolio were $76.4 million and $71.0 million at March 31, 2026 and at December 31, 2025, respectively. Total stockholders' equity at March 31, 2026 increased by $78.2 million compared to at March 31, 2025 and was impacted by net income of $111.4 million in the last twelve months and a decrease in accumulated other comprehensive loss of $19.6 million, partially offset by dividends paid of $58.6 million. RESULTS OF OPERATIONS Net Interest Income Net interest income, the amount by which interest income exceeds interest expense, remains Peoples' largest source of revenue. The amount of net interest income earned by Peoples each quarter is affected by various factors, including changes in market interest rates due to the Federal Reserve’s monetary policy, the level and degree of pricing competition for loans and deposits in Peoples’ markets, and the amount and composition of Peoples' earning assets and interest-bearing liabilities. Net interest margin, which is calculated by dividing fully tax-equivalent ("FTE") net interest income by average interest-earning assets, serves as an important measurement of the net revenue stream generated by the volume, mix and pricing of interest-earning assets and interest-bearing liabilities. FTE net interest income is calculated by increasing interest income to convert tax-exempt income earned on obligations of states and political subdivisions and tax-exempt loans to the pre-tax equivalent of taxable income using a federal statutory corporate income tax rate of 21% for all periods presented. The following table details the calculation of FTE net interest income: Three Months Ended March 31, 2026 December 31, 2025 March 31, 2025 (Dollars in thousands) Net interest income $ 90,420 $ 91,049 $ 85,255 Taxable equivalent adjustment 245 266 283 FTE net interest income $ 90,665 $ 91,315 $ 85,538 43 Table of Contents The following tables detail Peoples’ average balance sheets for the periods presented: For the Three Months Ended March 31, 2026 December 31, 2025 March 31, 2025 ( Dollars in thousands) Average Balance Income/ Expense Yield/Cost Average Balance Income/ Expense Yield/Cost Average Balance Income/ Expense Yield/Cost Short-term investments $ 82,872 $ 790 3.87 % $ 77,906 $ 773 3.94 % $ 88,919 $ 900 4.10 % Investment securities (a)(b): Taxable 1,807,384 16,526 3.66 % 1,824,162 17,108 3.75 % 1,718,453 15,372 3.58 % Nontaxable 154,566 1,032 2.67 % 162,328 1,121 2.76 % 178,582 1,226 2.75 % Total investment securities 1,961,950 17,558 3.58 % 1,986,490 18,229 3.67 % 1,897,035 16,598 3.50 % Loans (b)(c): Construction 289,892 4,586 6.33 % 272,994 5,108 7.32 % 313,130 5,572 7.12 % Commercial real estate, other 2,251,931 34,658 6.16 % 2,258,134 35,222 6.10 % 2,069,134 33,260 6.43 % Commercial and industrial 1,554,825 25,110 6.46 % 1,500,548 24,910 6.50 % 1,336,133 23,332 6.98 % Premium finance 238,918 4,553 7.62 % 260,833 4,868 7.30 % 259,241 5,585 8.62 % Leases 355,857 8,578 9.64 % 368,453 9,663 10.26 % 395,161 10,198 10.32 % Residential real estate (d) 958,354 13,049 5.45 % 978,507 13,143 5.37 % 956,049 12,215 5.11 % Home equity lines of credit 256,543 4,404 6.96 % 251,730 4,771 7.52 % 233,522 4,382 7.61 % Consumer, indirect 700,411 11,293 6.54 % 703,178 11,590 6.54 % 674,211 10,548 6.34 % Consumer, direct 128,423 2,487 7.85 % 127,434 2,538 7.90 % 117,881 2,234 7.69 % Total loans 6,735,154 108,718 6.47 % 6,721,811 111,813 6.54 % 6,354,462 107,326 6.77 % Allowance for credit losses (75,284) (74,351) (63,060) Net loans 6,659,870 108,718 6.54 % 6,647,460 111,813 6.61 % 6,291,402 107,326 6.84 % Total earning assets 8,704,692 127,066 5.85 % 8,711,856 130,815 5.92 % 8,277,356 124,824 6.04 % Goodwill and other intangible assets 392,490 394,409 401,344 Other assets 503,926 524,509 516,767 Total assets $ 9,601,108 $ 9,630,774 $ 9,195,467 Interest-bearing deposits: Savings accounts $ 903,050 $ 183 0.08 % $ 886,250 $ 185 0.08 % $ 879,301 $ 250 0.12 % Governmental deposit accounts 782,543 3,923 2.03 % 774,267 4,278 2.19 % 781,782 4,652 2.41 % Interest-bearing demand accounts 1,055,685 572 0.22 % 1,053,419 611 0.23 % 1,083,999 490 0.18 % Money market accounts 925,668 4,541 1.99 % 959,627 5,220 2.16 % 914,076 5,291 2.35 % Retail CDs 1,973,029 16,458 3.38 % 1,999,726 17,745 3.52 % 1,939,364 18,434 3.85 % Brokered CDs (e) 301,470 2,954 3.97 % 412,883 4,196 4.03 % 564,660 6,046 4.34 % Total interest-bearing deposits 5,941,445 28,631 1.95 % 6,086,172 32,235 2.10 % 6,163,182 35,163 2.31 % Borrowed funds: Short-term FHLB advances (e) 368,289 3,382 3.72 % 128,782 1,294 3.99 % 32,822 343 4.24 % Repurchase agreements and other 182,081 1,577 3.46 % 300,347 2,907 3.87 % 23,742 165 2.83 % Total short-term borrowings 550,370 4,959 3.64 % 429,129 4,201 3.91 % 56,564 508 3.63 % Long-term FHLB advances 117,467 1,155 3.99 % 131,169 1,328 4.02 % 131,769 1,302 4.01 % Long-term notes payable 41,628 747 7.18 % 40,908 734 7.18 % 50,341 895 7.10 % Other long-term borrowings (f) 31,839 909 11.42 % 39,167 1,002 10.01 % 54,990 1,418 10.32 % Total long-term borrowings 190,934 2,811 5.92 % 211,244 3,064 5.74 % 237,100 3,615 6.13 % Total borrowed funds 741,304 7,770 4.23 % 640,373 7,265 4.51 % 293,664 4,123 5.65 % Total interest-bearing liabilities 6,682,749 36,401 2.21 % 6,726,545 39,500 2.33 % 6,456,846 39,286 2.47 % Non-interest-bearing deposits 1,604,708 1,605,305 1,498,964 Other liabilities 95,283 102,419 116,797 Total liabilities 8,382,740 8,434,269 8,072,607 Total stockholders’ equity 1,218,368 1,196,505 1,122,860 Total liabilities and stockholders’ equity $ 9,601,108 $ 9,630,774 $ 9,195,467 Interest rate spread (b) $ 90,665 3.64 % $ 91,315 3.59 % $ 85,538 3.57 % Net interest margin (b) 4.16 % 4.12 % 4.12 % 44 Table of Contents (a) Average balances are based on carrying value. (b) Interest income and yields are presented on a fully tax-equivalent basis, using a 21% statutory federal corporate income tax rate. (c) Average balances include nonaccrual and impaired loans. Interest income includes interest earned and received on nonaccrual loans prior to the loans being placed on nonaccrual status. Loan fees included in interest income were immaterial for all periods presented. (d) Loans held for sale are included in the average loan balance listed. Related interest income on loans originated for sale prior to the loan being sold is included in loan interest income. (e) Interest related to interest rate swap transactions is included, as appropriate to the transaction, in interest expense on short-term FHLB advances and interest expense on brokered CDs for the periods presented in which interest payments on FHLB advances or brokered CDs were being hedged. (f) Included in other long-term borrowings are trust preferred securities and floating rate junior deferrable interest debentures. The following table provides an analysis of the changes in FTE net interest income: Three Months Ended March 31, 2026 Compared to (Dollars in thousands) December 31, 2025 March 31, 2025 Increase (decrease) in: Rate Volume Total (a) Rate Volume Total (a) INTEREST INCOME: Short-term investments $ (19) $ 36 $ 17 $ (49) $ (61) $ (110) Investment Securities (b): Taxable (324) (258) (582) (353) 1,507 1,154 Nontaxable (36) (53) (89) (24) (170) (194) Total investment income (360) (311) (671) (377) 1,337 960 Loans (b) : Construction (720) 198 (522) (572) (414) (986) Commercial real estate, other 296 (859) (563) (1,539) 2,937 1,398 Commercial and industrial (140) 340 200 (2,041) 3,819 1,778 Premium finance 191 (506) (315) (594) (438) (1,032) Leases (443) (642) (1,085) (77) (1,543) (1,620) Residential real estate 185 (279) (94) 825 9 834 Home equity lines of credit (353) (14) (367) (410) 432 22 Consumer, indirect — (297) (297) 335 410 745 Consumer, direct (15) (36) (51) 53 200 253 Total loan income (999) (2,095) (3,094) (4,020) 5,412 1,392 Total interest income $ (1,378) $ (2,370) $ (3,748) $ (4,446) $ 6,688 $ 2,242 INTEREST EXPENSE: Deposits: Savings accounts 1 1 2 74 (7) 67 Interest-bearing demand accounts 27 12 39 (95) 13 (82) Money market accounts 385 294 679 817 (67) 750 Governmental deposit accounts 307 48 355 734 (5) 729 Retail CDs 670 617 1,287 2,297 (320) 1,977 Brokered CDs 43 1,199 1,242 274 2,818 3,092 Total deposit cost 1,433 2,171 3,604 4,101 2,432 6,533 Borrowed funds: Short-term borrowings 387 (1,145) (758) 785 (5,236) (4,451) Long-term borrowings (104) 356 252 (89) 892 803 Total borrowed funds cost 283 (789) (506) 696 (4,344) (3,648) Total interest expense 1,716 1,382 3,098 4,797 (1,912) 2,885 FTE net interest income $ 338 $ (988) $ (650) $ 351 $ 4,776 $ 5,127 (a) The change in interest due to both rate and volume has been allocated to rate and volume changes in proportion to the relationship of the dollar amounts of the change in each. (b) Interest income and yields are presented on a fully tax-equivalent basis, using a 21% statutory federal corporate income tax rate. Net interest income was $90.4 million for the first quarter of 2026 a decrease of $0.6 million when compared to the linked quarter. Net interest margin was 4.16% for the first quarter of 2026, compared to 4.12% for the linked quarter. The decrease in net interest 45 Table of Contents income was primarily driven by a decrease in accretion income coupled with fewer days in the quarter compared to the linked quarter. The increase in net interest margin was driven by a reduction in deposit costs. Net interest income for the first quarter of 2026 increased $5.2 million, or 6%, compared to the first quarter of 2025. Net interest margin increased 4 basis points when compared to the first quarter of 2025. The increase in net interest income and net interest margin was primarily driven by lower deposit and borrowing costs. Accretion income, net of amortization expense, was $1.3 million for the first quarter of 2026, $1.8 million for the linked quarter and $3.5 million for the first quarter of 2025, which added 6 basis points, 8 basis points and 17 basis points, respectively, to net interest margin. The decrease in accretion income for the first quarter of 2026 when compared to the first quarter of 2025 was driven by less accretion recognized in the current period from the 2023 Limestone Merger. Additional information regarding changes in the Unaudited Consolidated Balance Sheets can be found under appropriate captions of the “FINANCIAL CONDITION” section of this MD&A. Additional information regarding Peoples' interest rate risk and the potential impact of interest rate changes on Peoples' results of operations and financial condition can be found later in this MD&A under the caption "FINANCIAL CONDITION - Interest Rate Sensitivity and Liquidity." Provision for Credit Losses The following table details Peoples’ provision for credit losses: Three Months Ended March 31, 2026 December 31, 2025 March 31, 2025 (Dollars in thousands) Provision for other credit losses $ 9,415 $ 7,801 $ 10,035 Provision for checking account overdraft credit losses 279 249 155 Provision for credit losses $ 9,694 $ 8,050 $ 10,190 The provision for credit losses recorded represents the amount needed to maintain the appropriate level of the allowance for credit losses based on management’s quarterly estimates. The provision for credit losses for the first quarter of 2026 was primarily driven by net charge-offs and a deterioration in the economic forecasts used within the CECL model. The provision for credit losses for the linked quarter of 2025 was primarily driven by (i) net charge-offs, (ii) loan growth, and (iii) a slight deterioration in the economic forecasts used within the CECL model, partially offset by reductions in reserves for individually analyzed loans and leases. Additional information regarding changes in the allowance for credit losses and loan credit quality can be found later in this MD&A under the caption “FINANCIAL CONDITION - Allowance for Credit Losses.” 46 Table of Contents Net Gain (Loss) Included in Total Non-Interest Income Net gain (loss) includes net gains and losses on investment securities, asset disposals and other transactions, which are recognized in total non-interest income. The following table details Peoples’ net losses for the periods presented: Three Months Ended March 31, 2026 December 31, 2025 March 31, 2025 (Dollars in thousands) Net (loss) gain on investment securities $ — $ (77) $ (2) Net loss on asset disposals and other transactions: Net loss on other assets (384) (210) (330) Net (loss) gain on OREO (26) (851) 20 Net loss on other transactions — (847) (51) Net loss on asset disposals and other transactions $ (410) $ (1,908) $ (361) The net loss on other assets for the first quarter of 2026 was driven by losses on repossessed assets. The net losses for the linked quarter were primarily driven by a $0.9 million net loss on the sale of an OREO property and a $0.8 million loss on the redemption of subordinated debt. The net loss on other assets reported for the first quarter of 2025 was driven by the losses recorded on repossessed assets. Total Non-Interest Income, Excluding Net Gains and Losses Total non-interest income, excluding net gains and losses, comprised 24% of Peoples' total revenues (defined as net interest income plus total non-interest income excluding net gains and losses) for the first quarter of 2026, consistent with the linked quarter and the first quarter of 2025. For the first quarter of 2026, e-banking income comprised the largest portion of Peoples' total non-interest income, excluding net gains and losses. Peoples' e-banking services include ATM and debit cards, direct deposit services, internet and mobile banking, and remote deposit capture, and serve as alternative delivery channels to traditional sales offices for providing services to customers. The following table details Peoples' e-banking income: Three Months Ended March 31, 2026 December 31, 2025 March 31, 2025 (Dollars in thousands) E-banking income $ 5,927 $ 6,329 $ 5,885 Peoples' e-banking income is derived largely from ATM and debit cards, as other services are mainly provided at no charge to customers. The amount of e-banking income is largely dependent on the timing and volume of customer activity. The following table details Peoples' insurance income: Three Months Ended March 31, 2026 December 31, 2025 March 31, 2025 (Dollars in thousands) Property and casualty insurance commissions $ 3,679 $ 3,844 $ 3,823 Performance-based commissions 1,204 5 1,542 Life and health insurance commissions 697 671 689 Insurance income $ 5,580 $ 4,520 $ 6,054 Peoples' insurance income for the first quarter of 2026 increased $1.1 million when compared to the linked quarter due to seasonal performance-based commissions paid in the first quarter of each year. Insurance income for the first quarter of 2026 decreased $0.5 million when compared to the first quarter of 2025 due to lower commissions based on the performance of the policies written during 2025. Peoples' trust and investment income, which includes fiduciary income, brokerage income, and employee benefit fees, continued to be based primarily upon the value of assets under administration and management, with additional income generated from transaction commissions, cross-selling of products and additional retirement plan services business. The following table details Peoples’ trust and investment income: 47 Table of Contents Three Months Ended March 31, 2026 December 31, 2025 March 31, 2025 (Dollars in thousands) Fiduciary income $ 2,282 $ 2,294 $ 2,092 Brokerage income 2,529 2,576 2,146 Employee benefit fees 794 822 823 Trust and investment income $ 5,605 $ 5,692 $ 5,061 Brokerage income in the first quarter of 2026 remained flat when compared to the linked quarter and increased compared to the first quarter of 2025 which was driven by an increase in assets under administration and management. The following table details Peoples' assets under administration and management: March 31, 2026 December 31, 2025 September 30, 2025 June 30, 2025 March 31, 2025 (Dollars in thousands) Trust $ 2,178,467 $ 2,219,650 $ 2,271,536 $ 2,138,439 $ 2,037,992 Brokerage $ 1,844,940 $ 1,846,084 $ 1,800,781 $ 1,724,311 $ 1,626,768 Total $ 4,023,407 $ 4,065,734 $ 4,072,317 $ 3,862,750 $ 3,664,760 Quarterly average $ 4,091,841 $ 4,065,195 $ 3,955,007 $ 3,736,778 $ 3,711,527 The decrease in assets under administration and management at March 31, 2026 compared to at December 31, 2025 was driven by market value fluctuations. The increase in assets under administration and management at March 31, 2026 when compared to at March 31, 2025 was primarily due to growth, as Peoples added new accounts and the underlying market values of assets under management grew. Deposit account service charges are based on the recovery of costs associated with services provided. The following table details Peoples' deposit account service charges: Three Months Ended March 31, 2026 December 31, 2025 March 31, 2025 (Dollars in thousands) Overdraft and non-sufficient funds fees $ 2,210 $ 2,401 $ 2,103 Account maintenance fees 1,881 1,966 1,644 Other fees and charges 176 250 268 Deposit account service charges $ 4,267 $ 4,617 $ 4,015 The amount of deposit account service charges, particularly fees for overdrafts and non-sufficient funds, is largely dependent on the timing and volume of customer activity. Management periodically evaluates its cost recovery fees to ensure they are reasonable based on operational costs and similar to fees charged in Peoples' markets by competitors. Deposit account service charges decreased for the first quarter of 2026 compared to the linked quarter due to the seasonality of customer activity. Deposit account service charges increased when comparing the first quarter of 2026 to the first quarter of 2025 due to higher maintenance fees driven by the volume of accounts. The following table details the other items included within Peoples' total non-interest income: Three Months Ended March 31, 2026 December 31, 2025 March 31, 2025 (Dollars in thousands) Lease income 4,581 4,290 3,468 Other non-interest income 1,166 1,099 1,450 Bank owned life insurance income 1,162 1,173 1,133 Mortgage banking income 376 537 396 Lease income is primarily comprised of (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 beyond maturity of the net investment in the lease, net of any associated purchase accounting adjustment, (iv) fees received for referrals, (v) gains and losses recognized on the sales of residual assets, net of any purchase accounting impact, and (vi) syndication income. Lease income for the first quarter of 2026 48 Table of Contents increased compared to the linked quarter due to operating lease income. The increase when compared to the first quarter of 2025 was driven by increases in operating lease income and gains on early terminated Vantage leases. Other non-interest income remained relatively flat for the first quarter of 2026 when compared to the linked quarter and decreased when compared to the first quarter of 2025 due to lower swap fee income which is driven by customer demand. BOLI income for the first quarter of 2026 remained flat when compared to the linked quarter and to the prior year quarter. Mortgage banking income is comprised mostly of net gains from the origination and sale of real estate loans in the secondary market, and, to a lesser extent, servicing income for loans sold with servicing retained. As a result, the amount of income recognized by Peoples is largely dependent on customer demand and long-term interest rates for residential real estate loans offered in the secondary market. Mortgage banking income for the first quarter of 2026 decreased when compared to the linked quarter and was primarily driven by the decreased volume in loans sold as more production was kept on the balance sheet relative to prior periods. In the first quarter of 2026, Peoples sold $6.0 million in loans into the secondary market with servicing retained and $3.6 million in loans with servicing released, compared to $8.6 million and $8.7 million, respectively, in the fourth quarter of 2025, and $0.2 million and $4.7 million, respectively, in the first quarter of 2025. Non-Interest Expense Salaries and employee benefit costs remain Peoples' largest non-interest expense, accounting for over one-half of total non-interest expense. The following table details Peoples' salaries and employee benefit costs: Three Months Ended March 31, 2026 December 31, 2025 March 31, 2025 (Dollars in thousands) Base salaries and wages $ 25,447 $ 24,991 $ 24,618 Sales-based and incentive compensation 5,415 7,751 6,491 Employee benefits 5,606 4,896 4,522 Payroll taxes and other employment costs 2,659 2,023 2,779 Stock-based compensation 1,904 1,243 2,475 Deferred personnel costs (1,196) (1,786) (1,064) Salaries and employee benefit costs $ 39,835 $ 39,118 $ 39,821 Full-time equivalent employees: Actual at end of period 1,458 1,454 1,460 Average during the period 1,457 1,452 1,467 Base salaries and wages for the first quarter of 2026 increased compared to the linked quarter and to the first quarter of 2025, primarily driven by annual merit increases. Sales-based and incentive compensation decreased for the first quarter of 2026 compared to the linked quarter and the same period of 2025 and was driven by a decrease in corporate incentives. The increase in employee benefits for the first quarter of 2026 compared to the linked quarter and to the first quarter of 2025 was primarily related to higher medical costs. Payroll taxes and other employment costs for the first quarter of 2026 increased compared to the linked quarter due to the seasonal expenses recognized in the first quarter of each year. Stock-based compensation is generally recognized over the vesting period, which generally ranges from immediate vesting to vesting at the end of three years. An adjustment is made at the vesting date to reverse expense relating to forfeitures for performance awards, and at the date of forfeiture to reverse expense for non-vested restricted common share awards. Stock grants to retirement eligible grantees are expensed either immediately or over a shorter period than three years. The majority of Peoples' stock-based compensation is attributable to annual equity-based incentive awards to employees, which are awarded in the first quarter of each year based upon Peoples achieving certain performance goals during the prior year, and are generally contingent on employment through the vesting period. Deferred personnel costs represent the portion of current period salaries and employee benefit costs considered to be direct loan origination costs. These costs are capitalized and recognized over the life of the loan as a yield adjustment in interest income. As a result, the amount of deferred personnel costs for each period corresponds directly with the volume of loan originations, coupled with the average deferred costs per loan that are updated annually at the beginning of each year. Deferred personnel costs for the first quarter of 2026 decreased when compared to the fourth quarter of 2025 and increased compared to the first quarter of 2025, which is driven by loan volume. 49 Table of Contents Peoples' net occupancy and equipment expense was comprised of the following: Three Months Ended March 31, 2026 December 31, 2025 March 31, 2025 (Dollars in thousands) Depreciation $ 2,142 $ 2,162 $ 2,125 Repairs and maintenance costs 1,794 1,691 1,923 Property taxes, utilities and other costs 1,365 1,190 546 Net rent expense 923 937 1,018 Net occupancy and equipment expense $ 6,224 $ 5,980 $ 5,612 Net occupancy and equipment expense increased for the first quarter of 2026 compared to the linked quarter and the first quarter of 2025 due to increased property taxes. The following table details the other items included in total non-interest expense: Three Months Ended March 31, 2026 December 31, 2025 March 31, 2025 (Dollars in thousands) Data processing and software expense $ 7,536 $ 7,401 $ 7,005 Professional fees 2,753 3,168 3,087 Amortization of other intangible assets 1,697 2,210 2,213 E-banking expense 2,081 2,120 2,025 FDIC insurance premiums 1,410 1,350 1,251 Other loan expenses 1,123 1,219 1,119 Operating lease expense 1,804 1,513 985 Marketing expense 886 1,059 903 Travel and entertainment expense 583 556 500 Communication expense 589 589 734 Franchise tax expense 1,004 845 929 Other non-interest expense 4,110 4,166 4,603 Data processing and software expenses for the first quarter of 2026 increased compared to the linked quarter and same period in 2025 due to costs associated with recent technology projects. Professional fees for the first quarter of 2026 decreased when compared to the linked quarter and same period of 2025 due to decreased legal expenses. Amortization of other intangible assets for the first quarter of 2026 decreased $0.5 million compared to the linked quarter and to the prior year quarter due to decreases in amortization on core deposits and customer relationship intangibles. Peoples' e-banking expense is comprised of costs associated with debit and ATM cards and is driven by the timing and volume of customer activity. E-banking expense remained flat compared to both the linked quarter and the first quarter of 2025. Peoples' FDIC insurance premiums for the first quarter of 2026 increased slightly due to an increase in average assets when compared to the linked quarter and the first quarter of 2025. Other loan expenses during the first quarter of 2026 decreased slightly when compared to the linked quarter and remained flat when compared to the first quarter of 2025. The decrease compared to the linked quarter was driven by decreased business loan filing fees. Operating lease expense, which is the depreciation of operating lease assets, increased when compared to the linked quarter and the first quarter of 2025, driven by the increased volume of leases. Marketing expense for the first quarter of 2026 decreased when compared to the linked quarter primarily driven by lower advertising expense. Travel and entertainment expenses remained flat compared to the linked quarter and to the first quarter of 2025. Communication expense remained flat for the first quarter of 2026 when compared to the linked quarter and decreased compared to the first quarter of 2025 due to branch-related costs. 50 Table of Contents Peoples is subject to state franchise taxes, which are based largely on Peoples' equity, in the states where Peoples has a physical presence. Franchise tax expense also includes the Ohio Financial Institution Tax ("FIT"), which is a business privilege tax that is imposed on financial institutions organized for profit and doing business in Ohio. The Ohio FIT is based on the total equity capital in proportion to the taxpayer's gross receipts in Ohio as of the most recent year-end. The increase in franchise tax expense for the first quarter of 2026 compared to the linked quarter driven by increased rates. Other non-interest expense for the first quarter of 2026 remained flat when compared to the linked quarter and decreased compared to the first quarter of 2025 primarily due to lower corporate expenses. Income Tax Expense Peoples recorded income tax expense of $8.3 million with an effective tax rate of 22.3% for the first quarter of 2026, compared to income tax expense of $6.2 million with an effective tax rate of 16.4% for the linked quarter and income tax expense of $7.0 million with an effective tax rate of 22.4% for the first quarter of 2025. The increase in income tax expense and the effective tax rate when compared to the linked quarter was impacted by updates to state apportionment in the fourth quarter of 2025, reducing expense by $0.9 million, and a $0.7 million benefit relating to tax credits purchased in the linked quarter. The increase in income tax expense when compared to March 31, 2025 was driven by higher pretax income. Additional information regarding income taxes can be found in "Note 13 Income Taxes" of the Notes to the Consolidated Financial Statements included in Peoples' 2025 Form 10-K. Pre-Provision Net Revenue (Non-US GAAP) Pre-provision net revenue ("PPNR") has become a key financial measure used by state and federal bank regulatory agencies when assessing the capital adequacy of financial institutions. PPNR is defined as net interest income plus total non-interest income, excluding all gains and losses, minus total non-interest expense. As a result, PPNR represents the earnings capacity that can be either retained in order to build capital or used to absorb unexpected losses and preserve existing capital. This measure represents a Non-US GAAP financial measure since it excludes the provision for (recovery of) credit losses and all gains and losses included in earnings. The following table provides a reconciliation of this Non-US GAAP financial measure to the amounts reported in Peoples' Unaudited Condensed Consolidated Financial Statements for the periods presented: Three Months Ended March 31, 2026 December 31, 2025 March 31, 2025 (Dollars in thousands) Pre-provision net revenue: Income before income taxes $ 37,345 $ 37,977 $ 31,377 Add: provision for credit losses 9,694 8,050 10,190 Add: loss on OREO 26 851 — Add: loss on investment securities — 77 2 Add: loss on other assets 384 210 330 Add: loss on other transactions — 847 51 Less: gain on OREO — — 20 Pre-provision net revenue $ 47,449 $ 48,012 $ 41,930 The decrease in the PPNR for the first quarter of 2026 compared to the linked quarter was driven by a decrease in net interest income due to less days in the quarter compared to the linked quarter coupled with lower accretion income. PPNR for the first quarter of 2026 increased compared to the first quarter of 2025, primarily due to higher net interest income, driven by lower borrowing and deposit costs. Efficiency Ratio (Non-US GAAP) The efficiency ratio is a key financial measure used to monitor performance. The efficiency ratio is calculated as total non-interest expense (less amortization of other intangible assets) as a percentage of FTE net interest income plus total non-interest income excluding net gains and losses. This measure represents a Non-US GAAP financial measure since it excludes amortization of other intangible assets and all gains and losses included in earnings, and uses FTE net interest income. 51 Table of Contents The following table provides a reconciliation of this Non-US GAAP financial measure to the amounts reported in Peoples' Unaudited Condensed Consolidated Financial Statements for the periods presented: Three Months Ended March 31, 2026 December 31, 2025 March 31, 2025 (Dollars in thousands) Efficiency ratio: Total non-interest expense $ 71,635 $ 71,294 $ 70,787 Less: amortization of other intangible assets 1,697 2,210 2,213 Adjusted total non-interest expense 69,938 69,084 68,574 Total non-interest income 28,254 26,272 27,099 Less: net loss on investment securities — (77) (2) Less: net loss on asset disposals and other transactions (410) (1,908) (361) Total non-interest income excluding net losses 28,664 28,257 27,462 Net interest income 90,420 91,049 85,255 Add: FTE adjustment (a) 245 266 283 Net interest income on an FTE basis 90,665 91,315 85,538 Adjusted revenue $ 119,329 $ 119,572 $ 113,000 Efficiency ratio 58.61 % 57.78 % 60.68 % (a) Interest income and yields are presented on a fully tax-equivalent basis, using a 21% statutory federal corporate income tax rate. The efficiency ratio for the first quarter of 2026 was 58.6%, compared to 57.8% for the linked quarter and 60.7% for the first quarter of 2025. The efficiency ratio increased compared to the linked quarter mainly due to an increase in non-interest expenses resulting from certain expenses that are usually recognized in the first quarter of each year, coupled with lower accretion income. Return on Average Assets Adjusted for Non-Core Items Ratio (Non-US GAAP) In addition to return on average assets, management uses return on average assets adjusted for non-core items to monitor performance. The return on average assets adjusted for non-core items ratio represents a Non-US GAAP financial measure since it excludes the after-tax impact of all gains and losses and acquisition-related expenses. 52 Table of Contents The following table provides a reconciliation of this Non-US GAAP financial measure to the amounts reported in Peoples' Unaudited Condensed Consolidated Financial Statements for the periods presented: Three Months Ended March 31, 2026 December 31, 2025 March 31, 2025 (Dollars in thousands) Annualized net income adjusted for non-core items: Net income $ 29,006 $ 31,754 $ 24,336 Add: net loss on investment securities — 77 2 Less: tax effect of net loss on investment securities (a) — 16 — Add: net loss on asset disposals and other transactions 410 1,908 361 Less: tax effect of net loss on asset disposals and other transactions (a) 86 401 76 Add: acquisition-related expenses — — — Less: tax effect of acquisition-related expenses (a) — — — Net income adjusted for non-core items (after tax) $ 29,330 $ 33,322 $ 24,623 Days in the period 90 92 90 Days in the year 365 365 365 Annualized net income $ 117,635 $ 125,981 $ 98,696 Annualized net income adjusted for non-core items (after tax) $ 118,949 $ 132,201 $ 99,860 Return on average assets: Annualized net income $ 117,635 $ 125,981 $ 98,696 Total average assets 9,601,108 9,630,774 9,195,467 Return on average assets 1.23 % 1.31 % 1.07 % Return on average assets adjusted for non-core items: Annualized net income adjusted for non-core items (after tax) $ 118,949 $ 132,201 $ 99,860 Total average assets 9,601,108 9,630,774 9,195,467 Return on average assets adjusted for non-core items (after tax) 1.24 % 1.37 % 1.09 % (a) Based on a 21% statutory federal corporate income tax rate. The return on average assets and the return on average assets adjusted for non-core items for the first quarter of 2026 decreased when compared to the linked quarter due to lower annualized net income which was driven by lower interest income, attributable to fewer days in the period and less accretion income. The increase in the return on average assets and return on average assets adjusted for non-core items for the first quarter of 2026, compared to the first quarter of 2025, was attributable to an increase in annualized net income driven by an increase in net interest income. Return on Average Tangible Equity Ratio (Non-US GAAP) The return on average tangible equity ratio is a key financial measure used to monitor performance. This ratio is calculated as annualized net income (less the after-tax impact of amortization of other intangible assets) divided by average tangible equity. This 53 Table of Contents measure is Non-US GAAP since it excludes amortization of other intangible assets from earnings and the impact of goodwill and other intangible assets acquired through acquisitions on total stockholders' equity. Three Months Ended March 31, 2026 December 31, 2025 March 31, 2025 (Dollars in thousands) Annualized net income excluding amortization of other intangible assets: Net income $ 29,006 $ 31,754 $ 24,336 Add: amortization of other intangible assets 1,697 2,210 2,213 Less: tax effect of amortization of other intangible assets (a) 356 464 465 Net income excluding amortization of other intangible assets $ 30,347 $ 33,500 $ 26,084 Days in the period 90 92 90 Days in the year 365 365 365 Annualized net income $ 117,635 $ 125,981 $ 98,696 Annualized net income excluding amortization of other intangible assets $ 123,074 $ 132,908 $ 105,785 Average tangible equity: Total average stockholders' equity $ 1,218,368 $ 1,196,505 $ 1,122,860 Less: average goodwill and other intangible assets 392,490 394,409 401,344 Average tangible equity $ 825,878 $ 802,096 $ 721,516 Return on total average stockholders' equity ratio: Annualized net income $ 117,635 $ 125,981 $ 98,696 Total average stockholders' equity $ 1,218,368 $ 1,196,505 $ 1,122,860 Return on total average stockholders' equity 9.66 % 10.53 % 8.79 % Return on average tangible equity ratio: Annualized net income excluding amortization of other intangible assets $ 123,074 $ 132,908 $ 105,785 Average tangible equity $ 825,878 $ 802,096 $ 721,516 Return on average tangible equity 14.90 % 16.57 % 14.66 % (a) Based on a 21% statutory federal corporate income tax rate. The return on total average stockholders' equity and average tangible equity ratios decreased when compared to the linked quarter due to a decrease in annualized net income, which was driven by lower interest income, attributable to fewer days in the period and less accretion income. The increases in the return on total average stockholders' equity and average tangible equity ratios for the first quarter of 2026 compared to the same period of 2025 were driven by higher net income due to increased net interest income. 54 Table of Contents FINANCIAL CONDITION Cash and Cash Equivalents At March 31, 2026, Peoples' cash and balances due from banks increased by $4.4 million, while interest-bearing deposits in other banks decreased $3.0 million from December 31, 2025. The total cash and cash equivalents balance included $67.9 million of excess cash reserves being maintained at the FRB of Cleveland at March 31, 2026, compared to $73.2 million at December 31, 2025. The amount of excess cash reserves maintained is dependent upon Peoples' daily liquidity position, which is driven primarily by changes in deposit and loan balances. Through the first three months of 2026, Peoples' total cash and cash equivalents increased $1.4 million, driven by inflows of $34.5 million from operating activities, partially offset by cash outflows of $10.8 million for investing activities and $22.2 million for financing activities. Peoples' use of cash in investing activities was driven by an $18.0 million net increase in loans held for investment, partially offset by net cash inflows primarily related to proceeds from investment securities principal payments. The cash used in financing activities was driven by $43.5 million in the net change of short-term and long-term borrowings and outflows of $14.6 million for dividends paid, partially offset by an increase in non-interest bearing deposits of $41.1 million. Further information regarding the management of Peoples' liquidity position can be found later in this discussion under “Interest Rate Sensitivity and Liquidity.” Investment Securities The following table provides information regarding Peoples’ investment portfolio: (Dollars in thousands) Weighted Average Yield March 31, 2026 December 31, 2025 September 30, 2025 June 30, 2025 March 31, 2025 Available-for-sale securities, at fair value: Obligations of: U.S. Treasury and government agencies 3.67 % $ 26,152 $ 17,580 $ 17,696 $ 13,880 $ 14,343 U.S. government sponsored agencies 3.92 % 231,332 206,330 164,132 210,856 213,063 States and political subdivisions 2.25 % 165,105 170,832 186,822 193,363 195,505 Residential mortgage-backed securities 2.49 % 522,638 544,038 561,517 576,541 593,979 Commercial mortgage-backed securities 2.52 % 59,905 41,804 42,510 52,699 52,636 Bank-issued trust preferred securities 3.25 % 2,812 3,783 4,229 4,158 4,148 Total fair value $ 1,007,944 $ 984,367 $ 976,906 $ 1,051,497 $ 1,073,674 Total amortized cost $ 1,107,248 $ 1,076,980 $ 1,078,703 $ 1,170,092 $ 1,199,677 Net unrealized loss $ (99,304) $ (92,613) $ (101,797) $ (118,595) $ (126,003) Held-to-maturity securities, at amortized cost: Obligations of: U.S. government sponsored agencies 4.42 % $ 247,148 $ 261,826 $ 255,888 $ 299,183 $ 222,698 States and political subdivisions (a) 2.48 % 138,598 140,607 141,869 142,082 142,276 Residential mortgage-backed securities 4.56 % 399,724 423,628 438,101 360,559 290,023 Commercial mortgage-backed securities 2.51 % 98,205 96,776 95,966 98,195 98,469 Total amortized cost $ 883,675 $ 922,837 $ 931,824 $ 900,019 $ 753,466 Other investments $ 69,903 $ 68,656 $ 63,991 $ 67,538 $ 51,322 Total investment securities: Amortized cost $ 2,060,826 $ 2,068,473 $ 2,074,518 $ 2,137,649 $ 2,004,465 Carrying value $ 1,961,522 $ 1,975,860 $ 1,972,721 $ 2,019,054 $ 1,878,462 (a) Amortized cost is presented net of the allowance for credit losses of $233 at March 31, 2026, $236 at December 31, 2025, and $237 at March 31, 2025. For the first quarter of 2026, available-for-sale investment securities increased when compared to the linked quarter due to purchases of additional U.S. government sponsored securities. Compared to at March 31, 2025, available-for-sale investment 55 Table of Contents securities decreased driven primarily by regular principal payments on residential mortgage-backed securities. Held-to-maturity securities decreased compared to the linked quarter due to prepayments and maturities of residential mortgage-backed securities. Compared to the prior year quarter, held-to-maturity investment securities increased because of purchases of higher-yielding, longer duration securities booked to held-to-maturity in the third quarter of 2025. Additional information regarding Peoples' investment portfolio can be found in "Note 3 Investment Securities" of the Notes to the Unaudited Condensed Consolidated Financial Statements. Loans and Leases The following table provides information regarding outstanding loan balances: (Dollars in thousands) March 31, 2026 December 31, 2025 September 30, 2025 June 30, 2025 March 31, 2025 Originated loans and leases: Construction $ 248,396 $ 275,888 $ 207,528 $ 288,824 $ 266,644 Commercial real estate, other 1,653,982 1,635,055 1,633,725 1,468,120 1,413,759 Commercial real estate 1,902,378 1,910,943 1,841,253 1,756,944 1,680,403 Commercial and industrial 1,525,459 1,405,379 1,338,185 1,249,948 1,167,382 Premium finance 228,883 253,075 273,297 277,622 264,080 Leases 342,120 354,852 369,756 383,923 375,224 Residential real estate 507,499 502,475 497,415 483,486 458,663 Home equity lines of credit 223,581 214,967 206,084 197,875 187,887 Consumer, indirect 699,854 700,582 710,385 692,674 680,260 Consumer, direct 114,057 114,077 111,017 105,678 101,876 Consumer 813,911 814,659 821,402 798,352 782,136 Deposit account overdrafts 1,265 1,014 982 964 1,047 Total originated loans and leases $ 5,545,096 $ 5,457,364 $ 5,348,374 $ 5,149,114 $ 4,916,822 Acquired loans and leases (a): Construction $ 21,175 $ 25,053 $ 53,520 $ 52,489 $ 52,460 Commercial real estate, other 686,851 728,912 735,671 780,094 816,779 Commercial real estate 708,026 753,965 789,191 832,583 869,239 Commercial and industrial 121,338 130,376 151,320 157,434 176,445 Leases 8,106 10,797 12,997 16,129 20,230 Residential real estate 344,512 359,247 378,358 394,482 389,505 Home equity lines of credit 37,328 38,897 41,299 43,910 47,522 Consumer, direct 5,802 6,261 7,189 7,937 8,763 Total acquired loans and leases $ 1,225,112 $ 1,299,543 $ 1,380,354 $ 1,452,475 $ 1,511,704 Total loans and leases $ 6,770,208 $ 6,756,907 $ 6,728,728 $ 6,601,589 $ 6,428,526 Percent of loans and leases to total loans and leases: Construction 4.0 % 4.5 % 3.9 % 5.2 % 5.0 % Commercial real estate, other 34.5 % 34.9 % 35.1 % 34.0 % 34.7 % Commercial real estate 38.5 % 39.4 % 39.0 % 39.2 % 39.7 % Commercial and industrial 24.3 % 22.7 % 22.1 % 21.3 % 20.8 % Premium finance 3.4 % 3.7 % 4.1 % 4.2 % 4.1 % Leases 5.2 % 5.4 % 5.7 % 6.1 % 6.2 % Residential real estate 12.6 % 12.8 % 13.0 % 13.3 % 13.2 % Home equity lines of credit 3.9 % 3.8 % 3.7 % 3.7 % 3.7 % Consumer, indirect 10.3 % 10.4 % 10.6 % 10.5 % 10.6 % Consumer, direct 1.8 % 1.8 % 1.8 % 1.7 % 1.7 % Consumer 12.1 % 12.2 % 12.4 % 12.2 % 12.3 % Total percentage 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % Residential real estate loans being serviced for others $ 319,664 $ 322,139 $ 323,347 $ 326,710 $ 337,279 (a) Includes all loans acquired, and related loan discount recorded as part of acquisition accounting, in 2012 or thereafter. Loans that were acquired and subsequently re-underwritten are reported as originated upon execution of such credit actions (for example, renewals and increases in lines of credit). The period-end total loan and lease balances at March 31, 2026 increased $13.3 million, or 1% annualized, compared to at December 31, 2025. The increase in the period-end loan and lease balances at March 31, 2026 compared to at December 31, 2025 was 56 Table of Contents driven by increases of $111.0 million in commercial and industrial loans, partially offset by decreases of $31.4 million in construction loans, $24.2 million in premium finance loans, and $23.1 million in other commercial real estate loans. The period-end loan and lease balances at March 31, 2026 compared to at March 31, 2025 increased $341.7 million, or 5%, driven by increases of $303.0 million in commercial and industrial loans, $110.3 million in other commercial real estate loans, and $25.5 million in home equity lines of credit, partially offset by decreases of $49.5 million in construction loans, $45.2 million in leases, and $35.2 million in premium finance loans. Loan Concentration Peoples categorizes its commercial loans according to standard industry classifications and monitors for concentrations in a single industry or multiple industries that could be impacted by changes in economic conditions in a similar manner. Peoples' commercial lending activities continue to be spread over a diverse range of businesses from many sectors of the economy, with no single industry comprising over 10% of Peoples' total loan portfolio. Loans secured by commercial real estate, including commercial construction loans, continued to comprise the largest portion of Peoples' loan portfolio at March 31, 2026. The following tables provide information regarding the largest concentrations of commercial construction loans and other commercial real estate loans within the loan portfolio at March 31, 2026: (Dollars in thousands) Outstanding Balance Loan Commitments Total Exposure % of Total Construction: Apartment complexes $ 135,554 $ 132,804 $ 268,358 43.3 % Land development 32,304 87,292 119,596 19.3 % Industrial 25,906 22,419 48,325 7.8 % Land only 12,737 28,044 40,781 6.6 % Healthcare — 20,400 20,400 3.3 % Residential property 2,947 16,784 19,731 3.2 % Warehouse facilities 10,094 5,540 15,634 2.5 % Student housing 15,000 — 15,000 2.4 % Retail facilities 5,442 7,215 12,657 2.0 % Other (a) 29,587 29,337 58,924 9.6 % Total construction $ 269,571 $ 349,835 $ 619,406 100.0 % (a) All other total exposures by industry are less than 2% of the Total Exposure. 57 Table of Contents (Dollars in thousands) Outstanding Balance Loan Commitments Total Exposure % of Total Commercial real estate, other: Apartment complexes $ 493,086 $ 12,076 $ 505,162 21.1 % Industrial facilities: Owner occupied $ 122,881 $ 1,703 $ 124,584 5.2 % Non-owner occupied 126,690 2,138 128,828 5.4 % Total industrial facilities $ 249,571 $ 3,841 $ 253,412 10.6 % Retail facilities: Owner occupied $ 43,209 $ 2,023 $ 45,232 1.9 % Non-owner occupied 214,696 100 214,796 9.0 % Total retail facilities $ 257,905 $ 2,123 $ 260,028 10.9 % Lodging and lodging related: Owner occupied $ 26,775 $ — $ 26,775 1.1 % Non-owner occupied 162,404 5,680 168,084 7.0 % Total lodging and lodging related $ 189,179 $ 5,680 $ 194,859 8.1 % Office buildings and complexes: Owner occupied $ 72,183 $ 1,658 $ 73,841 3.1 % Non-owner occupied 102,620 1,232 103,852 4.3 % Total office buildings and complexes $ 174,803 $ 2,890 $ 177,693 7.4 % Assisted living facilities and nursing homes $ 146,244 $ 881 $ 147,125 6.1 % Warehouse facilities: Owner occupied $ 71,874 $ 598 $ 72,472 3.0 % Non-owner occupied 25,723 143 25,866 1.1 % Total warehouse facilities $ 97,597 $ 741 $ 98,338 4.1 % Restaurant/bar facilities: Owner occupied $ 52,435 $ — $ 52,435 2.2 % Non-owner occupied 22,587 — 22,587 0.9 % Total restaurant/bar facilities $ 75,022 $ — $ 75,022 3.1 % Mixed-use facilities: Owner occupied $ 36,853 $ 2,027 $ 38,880 1.6 % Non-owner occupied 32,965 796 33,761 1.4 % Total mixed-use facilities $ 69,818 $ 2,823 $ 72,641 3.0 % Storage Facility Owner occupied $ 48,427 $ 196 $ 48,623 2.0 % Non-owner occupied 4,024 447 4,471 0.2 % Total storage facilities $ 52,451 $ 643 $ 53,094 2.2 % Other (a) 535,157 26,520 561,677 23.4 % Total commercial real estate, other $ 2,340,833 $ 58,218 $ 2,399,051 100.0 % (a) All other total exposures by industry are less than 2% of the Total Exposure. Peoples' commercial lending activities continue to focus on lending opportunities within Ohio, Kentucky, West Virginia, Virginia, Washington, D.C. and Maryland. For all other states, the aggregate outstanding balances of commercial loans in each state were less than 6% of total loans at March 31, 2026 and less than 4% of total loans at December 31, 2025. The repayment of premium finance loans is secured by the underlying insurance policy prepaid premium, and therefore, geography is not a factor from a repayment perspective. The repayment of leases is secured by the underlying equipment collateral and not real estate, which mitigates geographic risk. 58 Table of Contents Allowance for Credit Losses The amount of the allowance for credit losses at the end of each period represents management's estimate of expected losses from existing loans based upon its quarterly analysis of the loan portfolio. While this process involves allocations being made to specific loans and pools of loans, the entire allowance is available for all losses expected within the loan portfolio. The following details management's allocation of the allowance for credit losses: (Dollars in thousands) March 31, 2026 December 31, 2025 September 30, 2025 June 30, 2025 March 31, 2025 Construction $ 1,512 $ 1,391 $ 1,252 $ 1,347 $ 1,156 Commercial real estate, other 20,803 19,726 18,316 17,144 17,155 Commercial and industrial 21,759 18,804 17,896 17,854 12,783 Premium finance 686 749 776 794 646 Leases 15,304 16,475 18,040 19,633 13,575 Residential real estate 6,643 6,295 6,348 6,113 6,786 Home equity lines of credit 1,643 1,934 1,880 1,814 1,863 Consumer, indirect 7,760 7,706 7,862 7,643 8,696 Consumer, direct 2,156 2,485 2,385 2,248 2,474 Deposit account overdrafts 126 111 109 91 98 Allowance for credit losses $ 78,392 $ 75,676 $ 74,864 $ 74,681 $ 65,232 As a percent of total loans 1.16 % 1.12 % 1.11 % 1.13 % 1.01 % The increase in the allowance for credit losses at March 31, 2026 compared to at December 31, 2025 was driven by a deterioration in the economic forecasts used within the CECL model. Compared to at March 31, 2025, the allowance for credit losses increased due to (i) loan growth, (ii) deterioration in the economic forecasts used within the CECL model, (iii) a periodic refresh in the loss drivers utilized within the CECL model, (iv) an increase in reserves for leases originated by the North Star Leasing division, and (v) an increase in individually analyzed loans and leases. Additional information regarding Peoples' allowance for credit losses can be found in "Note 1 Summary of Significant Accounting Policies" in Peoples' 2025 Form 10-K and "Note 4 Loans and Leases" of the Notes to the Unaudited Condensed Consolidated Financial Statements in this Form 10-Q. 59 Table of Contents The following table summarizes Peoples’ net charge-offs and recoveries: Three Months Ended (Dollars in thousands) March 31, 2026 December 31, 2025 September 30, 2025 June 30, 2025 March 31, 2025 Gross charge-offs: Commercial real estate, other $ — $ 18 $ 27 $ 35 $ 215 Commercial and industrial 265 343 472 556 380 Premium finance 52 213 105 93 71 Leases 4,811 5,721 4,930 5,099 5,654 Residential real estate 119 60 71 — 142 Home equity lines of credit 32 2 27 12 — Consumer, indirect 1,929 1,558 1,607 1,693 1,866 Consumer, direct 204 161 290 96 155 Consumer 2,133 1,719 1,897 1,789 2,021 Deposit account overdrafts 347 315 312 245 277 Total gross charge-offs $ 7,759 $ 8,391 $ 7,841 $ 7,829 $ 8,760 Recoveries: Construction $ — $ 25 $ — $ — $ — Commercial real estate, other — 59 1 — 4 Commercial and industrial 11 3 26 17 6 Premium finance 6 1 3 3 6 Leases 557 365 443 261 245 Residential real estate 82 36 40 50 49 Home equity lines of credit 12 — — — — Consumer, indirect 337 385 418 449 210 Consumer, direct 26 10 27 14 20 Consumer 363 395 445 463 230 Deposit account overdrafts 83 68 54 71 99 Total recoveries $ 1,114 $ 952 $ 1,012 $ 865 $ 639 Net charge-offs (recoveries): Construction $ — $ (25) $ — $ — $ — Commercial real estate, other — (41) 26 35 211 Commercial and industrial 254 340 446 539 374 Premium finance 46 212 102 90 65 Leases 4,254 5,356 4,487 4,838 5,409 Residential real estate 37 24 31 (50) 93 Home equity lines of credit 20 2 27 12 — Consumer, indirect 1,592 1,173 1,189 1,244 1,656 Consumer, direct 178 151 263 82 135 Consumer 1,770 1,324 1,452 1,326 1,791 Deposit account overdrafts 264 247 258 174 178 Total net charge-offs $ 6,645 $ 7,439 $ 6,829 $ 6,964 $ 8,121 Ratio of net charge-offs (recoveries) to average total loans (annualized): Construction — % — % — % — % — % Commercial real estate, other — % — % — % — % 0.01 % 60 Table of Contents Three Months Ended (Dollars in thousands) March 31, 2026 December 31, 2025 September 30, 2025 June 30, 2025 March 31, 2025 Commercial and industrial 0.02 % 0.02 % 0.03 % 0.03 % 0.02 % Premium finance — % 0.01 % 0.01 % 0.01 % — % Leases 0.26 % 0.32 % 0.27 % 0.30 % 0.35 % Residential real estate — % — % — % — % 0.01 % Home equity lines of credit — % — % — % — % — % Consumer, indirect 0.10 % 0.07 % 0.06 % 0.07 % 0.11 % Consumer, direct — % 0.01 % 0.02 % 0.01 % 0.01 % Consumer 0.10 % 0.08 % 0.08 % 0.08 % 0.12 % Deposit account overdrafts 0.02 % 0.01 % 0.02 % 0.01 % 0.01 % Total 0.40 % 0.44 % 0.41 % 0.43 % 0.52 % Each with "--%" not meaningful. Total net charge-offs during the first quarter of 2026 were $6.6 million, or 0.40% of average total loans on an annualized basis, compared to $7.4 million, or 0.44% of average total loans on an annualized basis during the linked quarter, and $8.1 million, or 0.52% of average total loans on an annualized basis, during the first quarter of 2025. Compared to the linked quarter and first quarter of 2025, net charge-offs decreased, primarily driven by a decrease in net charge-offs in leases originated by the North Star Leasing division. 61 Table of Contents The following table details Peoples’ nonperforming assets: (Dollars in thousands) March 31, 2026 December 31, 2025 September 30, 2025 June 30, 2025 March 31, 2025 Loans 90+ days past due and accruing: Commercial real estate, other $ — $ 579 $ — $ 494 $ 284 Commercial and industrial 105 126 163 36 106 Premium finance 1,820 2,477 2,492 3,533 2,502 Leases 77 542 496 547 218 Residential real estate 426 1,937 1,432 1,192 853 Home equity lines of credit 196 69 28 108 47 Consumer, indirect 107 286 160 98 77 Consumer, direct 115 140 127 118 120 Consumer 222 426 287 216 197 Total loans 90+ days past due and accruing $ 2,846 $ 6,156 $ 4,898 $ 6,126 $ 4,207 Nonaccrual loans: Commercial real estate, other 7,363 4,056 3,861 4,824 5,378 Commercial and industrial 4,558 8,045 6,258 5,514 5,747 Premium finance 455 573 — — — Leases 9,909 11,063 11,338 11,907 12,079 Residential real estate 9,601 8,556 8,249 8,028 8,163 Home equity lines of credit 1,555 1,507 1,336 1,339 1,537 Consumer, indirect 2,994 2,718 2,563 2,697 2,521 Consumer, direct 279 368 284 176 203 Consumer 3,273 3,086 2,847 2,873 2,724 Total nonaccrual loans $ 36,714 $ 36,886 $ 33,889 $ 34,485 $ 35,628 Total nonperforming loans ("NPLs") $ 39,560 $ 43,042 $ 38,787 $ 40,611 $ 39,835 OREO: Commercial $ — $ — $ 5,891 $ 5,891 $ 5,891 Residential 97 123 122 122 89 Total OREO $ 97 $ 123 $ 6,013 $ 6,013 $ 5,980 Total nonperforming assets ("NPAs") $ 39,657 $ 43,165 $ 44,800 $ 46,624 $ 45,815 Criticized loans (a) $ 224,124 $ 236,468 $ 268,326 $ 244,442 $ 226,542 Classified loans (b) $ 141,940 $ 147,175 $ 158,577 $ 125,014 $ 123,842 Asset Quality Ratios (c): Nonaccrual loans as a percent of total loans 0.54 % 0.55 % 0.50 % 0.52 % 0.55 % NPLs as a percent of total loans (d) 0.58 % 0.64 % 0.58 % 0.61 % 0.62 % NPAs as a percent of total assets (d) 0.41 % 0.45 % 0.47 % 0.49 % 0.50 % NPAs as a percent of total loans and OREO (d) 0.59 % 0.64 % 0.66 % 0.71 % 0.71 % Allowance for credit losses as a percent of nonaccrual loans 213.52 % 205.16 % 220.91 % 216.56 % 183.09 % Allowance for credit losses as a percent of NPLs (d) 198.16 % 175.82 % 193.01 % 183.89 % 163.76 % Criticized loans as a percent of total loans (a) 3.31 % 3.50 % 3.99 % 3.70 % 3.52 % Classified loans as a percent of total loans (b) 2.10 % 2.18 % 2.36 % 1.89 % 1.93 % (a) Includes loans categorized as special mention, substandard, doubtful, or loss. (b) Includes loans categorized as substandard, doubtful, or loss. (c) Data presented as of the end of the period indicated. (d) NPLs include loans 90+ days past due and accruing and nonaccrual loans. NPAs include nonperforming loans and OREO. 62 Table of Contents Peoples' NPAs decreased from 0.45% of total assets at December 31, 2025 to 0.41% of total assets at March 31, 2026. Total loans 90+ days past due and accruing decreased at March 31, 2026 compared to December 31, 2025, driven by a decrease in residential real estate loans which were transferred to nonaccrual status. During the first quarter of 2026, criticized loans decreased $12.3 million, while classified loans decreased $5.2 million when compared to at December 31, 2025. The decrease in both criticized and classified loans compared to at December 31, 2025 was driven by paydowns and loan upgrades. The decrease in criticized loans compared to at March 31, 2025 was driven by paydowns and loan upgrades. The increase in classified loans for the same period was driven by loan downgrades. The decrease in NPAs compared to at December 31, 2025, was primarily driven by a decrease in nonaccrual commercial and industrial loans and leases, partially offset by an increase in nonaccrual other commercial real estate loans . The decrease in NPAs compared to at March 31, 2025, was driven primarily by the sale of an OREO property in the fourth quarter of 2025. Deposits The following table details Peoples’ deposit balances: (Dollars in thousands) March 31, 2026 December 31, 2025 September 30, 2025 June 30, 2025 March 31, 2025 Non-interest-bearing deposits (a) $ 1,586,514 $ 1,545,428 $ 1,536,094 $ 1,530,824 $ 1,526,285 Interest-bearing deposits: Interest-bearing demand accounts (a) 1,111,875 1,092,252 1,068,443 1,058,910 1,087,197 Savings accounts 918,557 887,402 884,230 889,872 894,592 Retail CDs 1,968,441 1,983,791 2,008,619 2,005,322 1,965,978 Money market deposit accounts 958,413 945,313 948,177 927,543 967,331 Governmental deposit accounts 842,087 739,939 769,782 781,949 834,409 Brokered CDs 262,550 416,099 416,851 442,788 458,957 Total interest-bearing deposits 6,061,923 6,064,796 6,096,102 6,106,384 6,208,464 Total deposits $ 7,648,437 $ 7,610,224 $ 7,632,196 $ 7,637,208 $ 7,734,749 Demand deposits as a percent of total deposits 35 % 35 % 34 % 34 % 34 % (a) The sum of amounts presented is considered total demand deposits. At March 31, 2026, period-end total deposits increased $38.2 million compared to at December 31, 2025, driven by increases of $102.1 million in governmental deposits, which was due to seasonality, $41.1 million in non-interest bearing deposits, $31.2 million in savings accounts, and $19.6 million in interest-bearing demand accounts, partially offset by a decrease of $153.5 million in brokered deposits. The decrease in brokered deposit accounts was due to a strategic shift to other funding sources at lower rates. Compared to at March 31, 2025, period-end deposit balances decreased $86.3 million, or 1%. The decrease in total deposits was primarily driven by a decrease of $196.4 million in brokered deposits, partially offset by increases of $60.2 million in non-interest bearing deposits, $24.7 million in interest-bearing demand accounts, and $24.0 million in savings accounts. As part of its funding strategy, Peoples hedges 90-day brokered CDs or FHLB advances with interest rate swaps. The interest rate swaps pay a fixed rate of interest while receiving a floating rate component of interest tied to term SOFR, which offsets the rate on the brokered CDs or FHLB advances. As of March 31, 2026, Peoples had five effective interest rate swaps, with an aggregate notional value of $45.0 million, which were designated as cash flow hedges. Peoples continually evaluates the overall balance sheet position given the interest rate environment. 63 Table of Contents Borrowed Funds The following table details Peoples’ short-term borrowings and long-term borrowings: (Dollars in thousands) March 31, 2026 December 31, 2025 September 30, 2025 June 30, 2025 March 31, 2025 Short-term borrowings: FHLB Overnight borrowings $ 420,000 $ 365,000 $ 194,000 $ 356,000 $ — Retail repurchase agreements 22,941 20,277 14,250 23,569 19,228 Other short-term borrowings 62,921 145,008 275,340 17,291 — Total short-term borrowings $ 505,862 $ 530,285 $ 483,590 $ 396,860 $ 19,228 Long-term borrowings: FHLB advances $ 110,979 $ 131,106 $ 131,323 $ 131,580 $ 131,716 Vantage non-recourse debt 42,451 41,386 40,324 45,429 50,156 Other long-term borrowings 32,000 31,646 55,635 55,382 55,128 Total long-term borrowings $ 185,430 $ 204,138 $ 227,282 $ 232,391 $ 237,000 Total borrowed funds $ 691,292 $ 734,423 $ 710,872 $ 629,251 $ 256,228 Total borrowed funds, which include overnight borrowings, are mainly a function of loan growth and changes in total deposit balances. Other long-term borrowings include trust preferred securities and floating rate deferrable interest debentures. Total borrowed funds at March 31, 2026 decreased compared to at December 31, 2025 due to the increase in period-end deposits. Total borrowed funds increased compared to at March 31, 2025 due to higher overnight borrowings. Capital/Stockholders’ Equity At March 31, 2026, capital levels for both Peoples and Peoples Bank remained substantially higher than the minimum amounts needed to be considered "well capitalized" institutions under applicable banking regulations. These higher capital levels reflect Peoples' desire to maintain a strong capital position. In order to avoid limitations on dividends, equity repurchases and compensation, Peoples must exceed the three minimum required ratios by at least the capital conservation buffer of 2.50%, which applies to the common equity tier 1 ("CET1") ratio, the tier 1 capital ratio and the total risk-based capital ratio. At March 31, 2026, Peoples had a capital conservation buffer of 5.98%. The following table details Peoples' risk-based capital levels and corresponding ratios: (Dollars in thousands) March 31, 2026 December 31, 2025 September 30, 2025 June 30, 2025 March 31, 2025 Capital Amounts: Common Equity Tier 1 $ 911,986 $ 893,970 $ 875,454 $ 857,036 $ 845,200 Tier 1 943,986 925,616 906,900 888,282 876,246 Total (Tier 1 and Tier 2) 1,023,777 1,002,226 997,309 982,929 960,820 Net risk-weighted assets $ 7,323,347 $ 7,273,985 $ 7,231,476 $ 7,170,841 $ 6,986,418 Capital Ratios: Common Equity Tier 1 12.45 % 12.29 % 12.11 % 11.95 % 12.10 % Tier 1 12.89 % 12.73 % 12.54 % 12.39 % 12.54 % Total (Tier 1 and Tier 2) 13.98 % 13.78 % 13.79 % 13.71 % 13.75 % Tier 1 leverage ratio 10.14 % 9.91 % 9.74 % 9.83 % 9.80 % Peoples' risk-based capital ratios at March 31, 2026 increased when compared to at December 31, 2025 due to net income during the quarter, partially offset by dividends paid. In addition to traditional capital measurements, management uses tangible capital measures to evaluate the adequacy of Peoples' stockholders' equity. Such ratios represent Non-US GAAP financial measures since their calculation removes the impact of goodwill and other intangible assets acquired through acquisitions on amounts reported in the Unaudited Consolidated Balance Sheets. Management believes this information is useful to investors since it facilitates the comparison of Peoples' operating performance, financial condition and trends to peers, especially those without a similar level of intangible assets to that of Peoples. Further, intangible assets generally are difficult to convert into cash, especially during a financial crisis, and could decrease substantially in value should there be deterioration in the overall franchise value. As a result, tangible equity represents a conservative measure of the capacity for Peoples to incur losses but remain solvent. 64 Table of Contents The following table reconciles the calculation of these Non-US GAAP financial measures to amounts reported in Peoples' Unaudited Condensed Consolidated Financial Statements: (Dollars in thousands) March 31, 2026 December 31, 2025 September 30, 2025 June 30, 2025 March 31, 2025 Tangible equity: Total stockholders' equity $ 1,216,040 $ 1,206,602 $ 1,182,776 $ 1,153,350 $ 1,137,821 Less: goodwill and other intangible assets 391,601 393,319 395,535 397,785 400,099 Tangible equity $ 824,439 $ 813,283 $ 787,241 $ 755,565 $ 737,722 Tangible assets: Total assets $ 9,648,087 $ 9,649,630 $ 9,623,944 $ 9,540,608 $ 9,246,000 Less: goodwill and other intangible assets 391,601 393,319 395,535 397,785 400,099 Tangible assets $ 9,256,486 $ 9,256,311 $ 9,228,409 $ 9,142,823 $ 8,845,901 Tangible book value per common share: Tangible equity $ 824,439 $ 813,283 $ 787,241 $ 755,565 $ 737,722 Common shares outstanding 35,925,945 35,714,484 35,705,369 35,673,721 35,669,100 Tangible book value per common share $ 22.95 $ 22.77 $ 22.05 $ 21.18 $ 20.68 Tangible equity to tangible assets ratio: Tangible equity $ 824,439 $ 813,283 $ 787,241 $ 755,565 $ 737,722 Tangible assets $ 9,256,486 $ 9,256,311 $ 9,228,409 $ 9,142,823 $ 8,845,901 Tangible equity to tangible assets 8.91 % 8.79 % 8.53 % 8.26 % 8.34 % Tangible book value per common share increased to $22.95 at March 31, 2026 compared to $22.77 at December 31, 2025. The change in tangible book value per common share was due to net income over the last three months. Tangible book value per common share at March 31, 2026 increased compared to at March 31, 2025 primarily due to net income over the last twelve months. Interest Rate Sensitivity and Liquidity While Peoples is exposed to various business risks, the risks relating to interest rate sensitivity and liquidity are major risks that can materially impact future results of operations and financial condition due to their complexity and dynamic nature. The objective of Peoples' asset-liability management function is to measure and manage these risks in order to optimize net interest income within the constraints of prudent capital adequacy, liquidity and safety. This objective requires Peoples to focus on interest rate risk exposure and adequate liquidity through its management of the mix of assets and liabilities, their related cash flows and the rates earned and paid on those assets and liabilities. Ultimately, the asset-liability management function is intended to guide management in the acquisition and disposition of earning assets and selection of appropriate funding sources. Interest Rate Risk Interest rate risk ("IRR") is one of the most significant risks arising in the normal course of business of financial services companies like Peoples. IRR is the potential for economic loss due to future interest rate changes that can impact the earnings stream, as well as market values, of financial assets and financial liabilities. Peoples' exposure to IRR is due primarily to differences in the maturity or repricing of earning assets and interest-bearing liabilities. In addition, other factors, such as prepayments of loans and investment securities, or early withdrawal of deposits, can affect Peoples' exposure to IRR and impact interest costs or revenue streams. Peoples has assigned overall management of IRR to its Asset-Liability Committee (the “ALCO”), which has established an IRR management policy that sets minimum requirements and guidelines for monitoring and managing the level of IRR, including the review of assumptions used in modeling IRR. 65 Table of Contents The following table shows the estimated changes in net interest income and the economic value of equity based upon a standard, parallel shock analysis with balances held constant (dollars in thousands): Increase (Decrease) in Interest Rate Estimated Increase (Decrease) in Net Interest Income Estimated (Decrease) Increase in Economic Value of Equity (in Basis Points) March 31, 2026 December 31, 2025 March 31, 2026 December 31, 2025 300 $ 40,204 10.5 % $ 33,685 9.0 % $ (139,866) (6.4) % $ (180,169) (8.5) % 200 28,544 7.5 % 24,680 6.6 % (58,063) (2.6) % (81,855) (3.9) % 100 16,312 4.3 % 15,234 4.1 % (4,872) (0.2) % (11,295) (0.5) % (100) (12,652) (3.3) % (9,381) (2.5) % (51,742) (2.4) % (29,918) (1.4) % (200) (26,087) (6.8) % (19,378) (5.2) % (162,307) (7.4) % (128,374) (6.1) % (300) (1,282) (0.3) % 3,271 0.9 % (346,987) (15.8) % (307,784) (14.5) % This table uses a standard, parallel shock analysis on a static balance sheet for assessing the IRR to net interest income and the economic value of equity. A parallel shock assumes all points on the yield curve (one year, two year, three year, etc.) are directionally changed by the same degree. Management regularly assesses the impact of both increasing and decreasing interest rates. The table above shows the impact of upward and downward parallel shocks of 100, 200 and 300 basis points. Estimated changes in net interest income and the economic value of equity are partially driven by assumptions regarding the rate at which non-maturity deposits will reprice given a move in short-term interest rates, as well as assumptions regarding prepayment speeds on mortgage-backed securities. These and other modeling assumptions are monitored closely by Peoples on an ongoing basis. While parallel interest rate shock scenarios are useful in assessing the level of IRR inherent in the balance sheet, interest rates typically move in a nonparallel manner with differences in the timing, direction and magnitude of changes in short-term and long-term interest rates. Thus, any impact that might occur as a result of the Federal Reserve Board increasing short-term interest rates in the future could be offset by an inverse movement in long-term interest rates, and vice versa. For this reason, Peoples considers other interest rate scenarios in addition to analyzing the impact of parallel yield curve shifts. These include various flattening and steepening scenarios in which short-term and long-term interest rates move in different directions with varying magnitude. Peoples believes these scenarios to be more reflective of how interest rates change versus the severe parallel rate shocks described above. Given the shape of market yield curves at March 31, 2026, consideration of the bear steepener and bull steepener scenarios provide insights which were not captured by parallel shifts. The bear steepener scenario highlights the risk to net interest income and economic value of equity when short-term interest rates remain constant while long-term interest rates rise. In such a scenario, Peoples' deposit and borrowing costs, which are generally correlated with short-term interest rates, remain constant, while asset yields, which are correlated with long-term interest rates, rise. At March 31, 2026, the bear steepener scenario produced an increase in net interest income of 1.0% and an increase in the economic value of equity of 3.7%. The bull steepener scenario highlights the risk to net interest income and the economic value of equity when short-term rates fall faster than long-term rates. In such a scenario, Peoples' deposit and short-term borrowing costs, which are correlated with short-term rates, decrease, while long-term asset yields and long-term borrowing costs, which are more correlated with long-term rates, remain constant. Deposit costs decrease less quickly than variable rate asset yields over a short-term horizon but are mitigated to some extent over a longer horizon, resulting in a decreased amount of net interest income (margin) in a 12 month period and a relatively neutral impact to net interest income (margin) in a 24 month period. At March 31, 2026, the bull steepener scenario produced a decline of 0.6% to net interest income, as the impact of revised assumptions around deposit betas mitigate the impact of lower short-term rates over a 12-month horizon, and an increase in the economic value of equity of 1.0%. 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. As of March 31, 2026, Peoples had entered into five interest rate swap contracts with an aggregate notional value of $45.0 million. Additional information regarding Peoples’ interest rate swaps can be found in “Note 10 Derivative Financial Instruments” of the Notes to the Unaudited Condensed Consolidated Financial Statements. At March 31, 2026, Peoples' Unaudited Consolidated Balance Sheet was positioned to benefit from rising interest rates, while also mitigating the impact to net interest income decreasing rate scenarios. The table above illustrates this point as changes to net interest income increase in the rising interest rate scenarios. Liquidity In addition to IRR management, another major objective of the ALCO is to maintain a sufficient level of liquidity. Peoples revisits the model assumptions on an ongoing basis, and determined the methods used by the ALCO to monitor and evaluate the 66 Table of Contents adequacy of Peoples Bank's liquidity position remain appropriate and are largely unchanged from those disclosed in Peoples' 2025 Form 10-K. At March 31, 2026, Peoples Bank had liquid assets of $580.2 million, which represented 5.2% of total assets and unfunded loan commitments. Peoples also had an additional $132.9 million of unpledged investment securities not included in the measurement of liquid assets. Management believes the current mix of short-term liquidity sources, loan and security portfolio cash flows, and availability of other funding sources will allow Peoples to meet anticipated cash obligations, as well as special needs and off-balance sheet commitments. Off-Balance Sheet Activities and Contractual Obligations In the normal course of business, Peoples is a party to financial instruments with off-balance sheet risk necessary to meet the financing needs of Peoples' customers. These financial instruments include commitments to extend credit and standby letters of credit. The instruments involve, to varying degrees, elements of credit risk in excess of the amount recognized in the Unaudited Consolidated Balance Sheets. The contractual amounts of these instruments express the extent of involvement Peoples has in these financial instruments. Loan Commitments and Standby Letters of Credit Loan commitments are made to accommodate the financial needs of Peoples' customers. Standby letters of credit are instruments issued by Peoples Bank guaranteeing the beneficiary payment by Peoples Bank in the event of default by Peoples Bank's customer in the performance of an obligation or service. Historically, most loan commitments and standby letters of credit expire unused. Peoples Bank's exposure to credit loss in the event of nonperformance by the counter-party to the financial instrument for loan commitments and standby letters of credit is represented by the contractual amount of those instruments. Peoples Bank uses the same underwriting standards in making commitments and conditional obligations as it does for on-balance sheet instruments. The amount of collateral obtained is based on management's credit evaluation of the customer. Collateral held varies, but may include accounts receivable, inventory, property, plant, and equipment, and income-producing commercial properties. Peoples Bank routinely engages in activities that involve, to varying degrees, elements of risk that are not reflected in whole or in part in the Unaudited Condensed Consolidated Financial Statements. These activities are part of Peoples Bank's normal course of business and include traditional off-balance sheet credit-related financial instruments, interest rate contracts and commitments to make additional capital contributions in low-income housing tax credit investments. Traditional off-balance sheet credit-related financial instruments continue to represent the most significant off-balance sheet exposure. The following table details the total contractual amount of loan commitments and standby letters of credit: (Dollars in thousands) March 31, 2026 December 31, 2025 September 30, 2025 June 30, 2025 March 31, 2025 Home equity lines of credit $ 278,771 $ 272,977 $ 267,598 $ 268,217 $ 257,349 Unadvanced construction loans 365,618 367,127 367,917 362,405 350,382 Other loan commitments 794,100 779,076 763,058 791,389 729,254 Loan commitments $ 1,438,489 $ 1,419,180 $ 1,398,573 $ 1,422,011 $ 1,336,985 Standby letters of credit $ 7,071 $ 7,041 $ 6,402 $ 6,774 $ 6,970 ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK The information called for by this Item 3 is provided under the caption “FINANCIAL CONDITION - Interest Rate Sensitivity and Liquidity” under “ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS” in this Form 10-Q, and is incorporated herein by reference.