What changed in this filing

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Item 1. Financial Statements

2026-07-30 compared with 2026-04-30 · 285 added, 184 removed, 1105 unchanged (30% of the section changed)

9 unchanged sentences

Total cash and cash equivalents 179,725 188,951

Available-for-sale investment securities, at fair value (amortized cost of $ 1,107,248 at March 31, 2026 and $ 1,076,980 at December 31, 2025) (a)

Available-for-sale investment securities, at fair value (amortized cost of $ 966,592 at June 30, 2026 and $ 1,076,980 at December 31, 2025) (a)

874,050 984,367

Held-to-maturity investment securities, at amortized cost (fair value of $ 820,850 at March 31, 2026 and $ 867,714 at December 31, 2025) (a)

Held-to-maturity investment securities, at amortized cost (fair value of $ 802,716 at June 30, 2026 and $ 867,714 at December 31, 2025) (a)

867,332 922,837

19 unchanged sentences

Stockholders’ equity

Preferred shares, no par value, 50,000 shares authorized, no shares issued at March 31, 2026 or at December 31, 2025

Common shares, no par value, 50,000,000 shares authorized, 36,848,602 shares issued at March 31, 2026 and 36,836,943 shares issued at December 31, 2025, including at each date shares held in treasury

Preferred shares, no par value, 50,000 shares authorized, no shares issued at June 30, 2026 or at December 31, 2025

Common shares, no par value, 50,000,000 shares authorized, 36,860,845 shares issued at June 30, 2026 and 36,836,943 shares issued at December 31, 2025, including at each date shares held in treasury

869,739 871,571

1 unchanged sentence

Accumulated other comprehensive loss, net of deferred income taxes ( 70,861 ) ( 70,628 )

Treasury stock, at cost, 1,017,603 shares at March 31, 2026 and 1,215,120 shares at December 31, 2025

Treasury stock, at cost, 1,008,699 shares at June 30, 2026 and 1,215,120 shares at December 31, 2025

( 26,280 ) ( 31,089 )

1 unchanged sentence

Total liabilities and stockholders’ equity $ 9,540,161 $ 9,649,630

(a) Available-for-sale investment securities and held-to-maturity investment securities are presented net of allowance for credit losses of $ 0 and $ 233 , respectively, at March 31, 2026, and $ 0 and $ 236 , respectively, at December 31, 2025.

(a) Available-for-sale investment securities and held-to-maturity investment securities are presented net of allowance for credit losses of $ 0 and $ 233 , respectively, at June 30, 2026, and $ 0 and $ 236 , respectively, at December 31, 2025.

(b) Also referred to throughout this Quarterly Report on Form 10-Q as "total loans" or "loans held for investment."

4 unchanged sentences

CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)

Three Months Ended

Three Months Ended Six Months Ended

June 30, June 30,

(Dollars in thousands, except per share data) 2026 2025 2026 2025

16 unchanged sentences

Trust and investment income 5,986 5,281 11,591 10,342

Insurance income 5,580 6,054

Lease income 4,977 4,211 9,558 7,679

Deposit account service charges 4,488 4,059 8,755 8,074

Insurance income 4,331 4,549 9,911 10,603

Bank owned life insurance income 1,189 1,112 2,351 2,245

Mortgage banking income 598 220 974 616

Net loss on investment securities — ( 2 )

Net loss on asset disposals and other transactions ( 446 ) ( 280 ) ( 856 ) ( 641 )

Net loss on investment securities ( 8,181 ) — ( 8,181 ) ( 2 )

Other non-interest income 893 1,456 2,059 2,906

9 unchanged sentences

Federal Deposit Insurance Corporation ("FDIC") insurance expense

1,370 1,251 2,780 2,502

Other loan expenses 1,278 1,213 2,401 2,332

Franchise tax expense 972 678 1,976 1,607

Marketing expense 886 903

Communication expense 589 734

Travel and entertainment expense 726 713 1,309 1,213

Communication expense 605 712 1,194 1,446

Marketing expense 604 718 1,490 1,621

Other non-interest expense 3,840 4,246 7,950 8,849

13 unchanged sentences

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited)

Three Months Ended

Three Months Ended Six Months Ended

June 30, June 30,

(Dollars in thousands) 2026 2025 2026 2025

Net income $ 27,953 $ 21,212 $ 56,959 $ 45,548

Other comprehensive income:

Other comprehensive income (loss):

Available-for-sale investment securities:

3 unchanged sentences

Related tax expense ( 1,884 ) — ( 1,884 ) —

Net effect on other comprehensive income ( 5,419 ) 15,201

Net effect on other comprehensive income (loss) 5,204 5,681 ( 215 ) 20,882

Cash flow hedges:

3 unchanged sentences

Related tax benefit 36 67 74 166

Net effect on other comprehensive income 5 ( 507 )

Total other comprehensive income, net of tax ( 5,414 ) 14,694

Net effect on other comprehensive income (loss) ( 23 ) ( 262 ) ( 18 ) ( 769 )

Total other comprehensive income (loss), net of tax 5,181 5,419 ( 233 ) 20,113

Total comprehensive income $ 33,134 $ 26,631 $ 56,726 $ 65,661

6 unchanged sentences

(Dollars in thousands)

Balance, December 31, 2025 $ 871,571 $ 436,748 $ ( 70,628 ) $ ( 31,089 ) $ 1,206,602

Balance, March 31, 2026 $ 867,464 $ 451,107 $ ( 76,042 ) $ ( 26,489 ) $ 1,216,040

Net income — 27,953 — — 27,953

8 unchanged sentences

Stock-based compensation 1,495 — — — 1,495

Balance, June 30, 2026 $ 869,739 $ 463,953 $ ( 70,861 ) $ ( 26,280 ) $ 1,236,551

PEOPLES BANCORP INC.

AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (Unaudited) (continued)

Accumulated Other Comprehensive Loss Total Stockholders' Equity

Common Shares Retained Earnings Treasury Stock

(Dollars in thousands)

Balance, December 31, 2025 $ 871,571 $ 436,748 $ ( 70,628 ) $ ( 31,089 ) $ 1,206,602

Net income — 56,959 — — 56,959

Other comprehensive loss, net of tax — — ( 233 ) — ( 233 )

Cash dividends declared — ( 29,754 ) — — ( 29,754 )

Reissuance of treasury stock for common share awards ( 6,232 ) — — 6,232 —

Reissuance of treasury stock for deferred compensation plan for Boards of Directors — — — 292 292

Repurchase of treasury stock in connection with employee incentive program and compensation plan for Boards of Directors — — — ( 2,244 ) ( 2,244 )

Common shares issued under dividend reinvestment plan 838 — — — 838

Common shares issued under compensation plan for Boards of Directors 71 — — 191 262

Common shares issued under employee stock purchase plan 126 — — 338 464

Stock-based compensation 3,365 — — — 3,365

Balance, June 30, 2026 $ 869,739 $ 463,953 $ ( 70,861 ) $ ( 26,280 ) $ 1,236,551

PEOPLES BANCORP INC.

AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (Unaudited) (continued)

Accumulated Other Comprehensive Loss Total Stockholders' Equity

Common Shares Retained Earnings Treasury Stock

(Dollars in thousands)

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

Net income — 21,212 — — 21,212

Other comprehensive income, net of tax — — 5,419 — 5,419

Cash dividends declared — ( 14,616 ) — — ( 14,616 )

Reissuance of treasury stock for common share awards ( 145 ) — — 145 —

Reissuance of treasury stock for deferred compensation plan for Boards of Directors — — — 369 369

Repurchase of treasury stock in connection with employee incentive program and compensation plan for Boards of Directors — — — ( 369 ) ( 369 )

Common shares repurchased under share repurchase program — — — ( 455 ) ( 455 )

Common shares issued under dividend reinvestment plan 702 — — — 702

Common shares issued under compensation plan for Boards of Directors 22 — — 109 131

Common shares issued under employee stock purchase plan 40 — — 200 240

Stock-based compensation 1,458 — — — 1,458

Other — 1,438 — — 1,438

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

PEOPLES BANCORP INC.

AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (Unaudited) (continued)

Accumulated Other Comprehensive Loss Total Stockholders' Equity

6 unchanged sentences

Reissuance of treasury stock for common share awards ( 3,399 ) — — 3,399 —

Reissuance of treasury stock for deferred compensation plan for Boards of Directors — — — 369 369

Repurchase of treasury stock in connection with employee incentive program and compensation plan for Boards of Directors — — — ( 2,123 ) ( 2,123 )

Common shares repurchased under share repurchase program — — — ( 455 ) ( 455 )

Common shares issued under dividend reinvestment plan 1,037 — — — 1,037

2 unchanged sentences

Stock-based compensation 3,888 — — — 3,888

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

Other — 1,438 — — 1,438

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

See Notes to the Unaudited Condensed Consolidated Financial Statements

PEOPLES BANCORP INC.

1 unchanged sentence

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

Three Months Ended

Six Months Ended

(Dollars in thousands) 2026 2025

15 unchanged sentences

Other ( 18 ) ( 1,053 )

Net cash used in investing activities ( 10,848 ) ( 17,647 )

Net cash provided by (used in) investing activities 75,714 ( 330,964 )

Financing activities:

1 unchanged sentence

Net (decrease) increase in interest-bearing deposits ( 202,366 ) 23,453

Net decrease in short-term borrowings ( 24,423 ) ( 174,246 )

Net increase (decrease) in short-term borrowings 28,368 203,386

Proceeds from long-term borrowings 11,571 5,989

6 unchanged sentences

Other ( 259 ) 1,007

Net cash used in financing activities ( 22,228 ) ( 47,315 )

Net increase (decrease) in cash and cash equivalents 1,440 ( 30,686 )

Net cash (used in) provided by financing activities ( 175,511 ) 214,391

Net decrease in cash and cash equivalents ( 9,226 ) ( 31,589 )

Cash and cash equivalents at beginning of period 188,951 217,664

5 unchanged sentences

Supplemental noncash disclosures:

Transfers from total loans to other real estate owned 18 72

Noncash recognition of new leases 153 481

9 unchanged sentences

Accordingly, these financial statements do not contain all of the information and footnotes required by US GAAP for annual financial statements and should be read in conjunction with Peoples’ Annual Report on Form 10-K for the fiscal year ended December 31, 2025 ("Peoples' 2025 Form 10-K").

The accounting and reporting policies followed in the presentation of the accompanying Unaudited Condensed Consolidated Financial Statements are consistent with those described in "Note 1 Summary of Significant Accounting Policies" of the Notes to the Consolidated Financial Statements included in Peoples’ 2025 Form 10-K, as updated by the information contained in this Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2026 (this "Form 10-Q").

Management has evaluated all significant events and transactions that occurred after March 31, 2026 for potential recognition or disclosure in these Unaudited Condensed Consolidated Financial Statements.

Management has evaluated all significant events and transactions that occurred after June 30, 2026 for potential recognition or disclosure in these Unaudited Condensed Consolidated Financial Statements.

In the opinion of management, these Unaudited Condensed Consolidated Financial Statements reflect all adjustments necessary to present fairly such information for the periods and at the dates indicated.

16 unchanged sentences

Refer to "Note 1 Summary of Significant Accounting Policies" of the Notes to the Consolidated Financial Statements included in Peoples’ 2025 Form 10-K for the impact of recently adopted standards impacting Peoples.

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

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

ASU 2025-12 - Codification Improvements:

The FASB issued an Accounting Standards Update (“ASU”) 2025-12 in December 2025.

The FASB issued Accounting Standards Update (“ASU”) 2025-12 in December 2025.

The amendments in ASU 2025-12 are effective for all entities for fiscal years beginning after December 15, 2026 and interim periods within those annual reporting periods, with early adoption permitted.

Peoples early adopted the amendments within the guidance as of January 1, 2026.

Peoples early adopted the amendments within ASU 2025-12 as of January 1, 2026.

Overall, the guidance did not have a material impact on Peoples' financial statements.

15 unchanged sentences

Recurring Fair Value Measurements at Reporting Date

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

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

31 unchanged sentences

Assets and Liabilities Required to be Measured and Reported at Fair Value on a Non-Recurring Basis

The following table provides the fair value for each class of assets and liabilities required to be measured and reported at fair value on a non-recurring basis on the Unaudited Consolidated Balance Sheets by level in the fair value hierarchy at March 31, 2026 and December 31, 2025.

Non-Recurring Fair Value Measurements at Reporting Date

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

(Dollars in thousands) Level 2 Level 3 Level 2 Level 3

1 unchanged sentence

Loans held for sale (a) 946 — 1,678 —

(a) Loans held for sale are presented gross of a valuation allowance of $ 58 and $ 57 at March 31, 2026 and at December 31, 2025, respectively.

(a) Loans held for sale are presented gross of a valuation allowance of $ 58 and $ 57 at June 30, 2026 and at December 31, 2025, respectively.

Collateral Dependent Loans:

7 unchanged sentences

Fair Value Measurements of Other Financial Instruments

(Dollars in thousands) Fair Value Hierarchy Level March 31, 2026 December 31, 2025

(Dollars in thousands) Fair Value Hierarchy Level June 30, 2026 December 31, 2025

Carrying Amount Fair Value Carrying Amount Fair Value

18 unchanged sentences

Long-term borrowings 2 156,253 171,497 204,138 222,323

(a) Obligations of states and political subdivisions are presented gross of an allowance for credit losses of $ 233 and $ 236 at March 31, 2026 and at December 31, 2025, respectively.

(b) "Other investments", as reported on the Unaudited Consolidated Balance Sheets, also included equity investment securities at March 31, 2026

(a) Obligations of states and political subdivisions are presented gross of an allowance for credit losses of $ 233 and $ 236 at June 30, 2026 and at December 31, 2025, respectively.

(b) "Other investments", as reported on the Unaudited Consolidated Balance Sheets, also included equity investment securities at June 30, 2026

and at December 31, 2025, which are reported in the "Assets and Liabilities Required to be Measured and Reported at Fair Value on a Recurring Basis"

table above and not included in this table.

(c) Loans and leases, net of deferred fees and costs, are presented gross of an allowance for credit losses of $ 78.4 million and $ 75.7 million at March 31, 2026 and at December 31, 2025, respectively.

(c) Loans and leases, net of deferred fees and costs, are presented gross of an allowance for credit losses of $ 78.1 million and $ 75.7 million at June 30, 2026 and at December 31, 2025, respectively.

For certain financial assets and liabilities, carrying value approximates fair value due to the nature of the financial instrument.

30 unchanged sentences

(Dollars in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value

March 31, 2026

June 30, 2026

Obligations of:

15 unchanged sentences

Total available-for-sale securities $ 1,076,980 $ 2,570 $ ( 95,183 ) $ 984,367

The gross gains and losses realized by Peoples from sales or prepayments of available-for-sale investment securities for the periods ended March 31 were as follows:

Three Months Ended

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

Three Months Ended Six Months Ended

June 30, June 30,

(Dollars in thousands) 2026 2025 2026 2025

11 unchanged sentences

Unrealized Loss

March 31, 2026

June 30, 2026

Obligations of:

26 unchanged sentences

Management evaluates available-for-sale investment securities for an allowance for credit losses on a quarterly basis.

At March 31, 2026, management concluded that no individual securities at an unrealized loss position required an allowance for credit losses.

At March 31, 2026, Peoples did not have the intent to sell, nor was it more likely than not that Peoples would be required to sell, any of the securities with an unrealized loss prior to recovery.

Further, the unrealized losses at both March 31, 2026, and December 31, 2025, were attributable to changes in market interest rates and spreads since the securities were purchased, and were not credit-related losses.

The unrealized loss with respect to the one bank-issued trust preferred security that had been in an unrealized loss position for 12 months or more at March 31, 2026 was attributable to the subordinated nature of the trust preferred security.

The table below presents the amortized cost, fair value and total weighted-average yield of available-for-sale securities by contractual maturity at March 31, 2026.

The weighted-average yields are based on the amortized cost.

At June 30, 2026, management concluded that no individual securities at an unrealized loss position required an allowance for credit losses.

At June 30, 2026, Peoples did not have the intent to sell, nor was it more likely than not that Peoples would be required to sell, any of the securities with an unrealized loss prior to recovery.

Further, the unrealized losses at both June 30, 2026 and December 31, 2025 were attributable to changes in market interest rates and spreads since the securities were purchased, and were not credit-related losses.

The unrealized loss with respect to the one bank-issued trust preferred security that had been in an unrealized loss position for 12 months or more at June 30, 2026 was attributable to the subordinated nature of the trust preferred security.

The table below presents the amortized cost, fair value and total weighted-average yield of available-for-sale investment securities by contractual maturity at June 30, 2026.

The weighted-average yields are based on the amortized cost and are computed on a fully taxable-equivalent basis using a federal statutory corporate income tax rate of 21 % at June 30, 2026.

In some cases, the issuers may have the right to call or prepay obligations without call or prepayment penalties prior to the contractual maturity date.

21 unchanged sentences

(Dollars in thousands) Amortized Cost Allowance for Credit Losses Gross Unrealized Gains Gross Unrealized Losses Fair Value

March 31, 2026

June 30, 2026

Obligations of:

11 unchanged sentences

Total held-to-maturity investment securities $ 923,073 $ ( 236 ) $ 5,733 $ ( 60,856 ) $ 867,714

There were no sales of held-to-maturity investment securities during the three-month periods ended March 31, 2026 or December 31, 2025.

There were no sales of held-to-maturity investment securities during the periods ended June 30, 2026 or December 31, 2025.

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

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

Peoples calculated the allowance for credit losses for obligations of state and political subdivisions using cumulative default rate averages for municipal securities.

Peoples reported $ 0.2 million of allowance for credit losses for held-to-maturity investment securities at both March 31, 2026, and December 31, 2025.

Peoples calculated the allowance for credit losses for state and political subdivisions using cumulative default rate averages for municipal securities.

Peoples reported $ 0.2 million of allowance for credit losses for held-to-maturity investment securities at both June 30, 2026, and December 31, 2025.

The following table presents a summary of held-to-maturity investment securities that had been in a continuous unrealized loss position for the periods identified:

6 unchanged sentences

Value Unrealized Loss

March 31, 2026

June 30, 2026

Obligations of:

15 unchanged sentences

Total $ 175,761 $ 2,120 27 $ 394,083 $ 58,736 160 $ 569,844 $ 60,856

The table below presents the amortized cost, fair value and total weighted-average yield of held-to-maturity investment securities by contractual maturity at March 31, 2026.

The weighted-average yields are based on the amortized cost and are computed on a fully taxable-equivalent basis using a federal statutory corporate income tax rate of 21 % at March 31, 2026.

The table below presents the amortized cost, fair value and total weighted-average yield of held-to-maturity investment securities by contractual maturity at June 30, 2026.

The weighted-average yields are based on the amortized cost and are computed on a fully taxable-equivalent basis using a federal statutory corporate income tax rate of 21 % at June 30, 2026.

In some cases, the issuers may have the right to call or prepay obligations without call or prepayment penalties prior to the contractual maturity date.

17 unchanged sentences

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

(Dollars in thousands) March 31, 2026 December 31, 2025

(Dollars in thousands) June 30, 2026 December 31, 2025

FHLB stock $ 37,445 $ 30,843

4 unchanged sentences

Total other investments $ 76,099 $ 68,656

During the three months ended March 31, 2026, Peoples redeemed $ 9.8 million of FHLB stock in order to be in compliance with the requirements of the FHLB.

Peoples purchased $ 11.4 million of additional FHLB stock during the three months ended March 31, 2026, as a result of the FHLB's capital requirements on FHLB advances.

For the three months ended March 31, 2026 and 2025, Peoples recorded the change in the fair value of equity investment securities held during the period in "Other non-interest income", resulting in unrealized losses of $ 20,000 and $ 9,000 , respectively.

At March 31, 2026, Peoples' investment in equity investment securities was comprised largely of common stocks issued by various unrelated bank holding companies.

There were no equity investment securities of a single issuer that exceeded 10% of Peoples' stockholders' equity at March 31, 2026.

During the six months ended June 30, 2026, Peoples redeemed $ 20.2 million of FHLB stock in order to be in compliance with the requirements of the FHLB.

Peoples purchased $ 26.8 million of additional FHLB stock during the six months ended June 30, 2026, as a result of the FHLB's capital requirements on FHLB advances.

For the three months ended June 30, 2026 and 2025, Peoples recorded the change in the fair value of equity investment securities held during the period in "Other non-interest income", resulting in unrealized gains of $ 53,000 and $ 7,000 , respectively.

For the six months ended June 30, 2026 and 2025, Peoples recognized an unrealized gain of $ 33,000 and an unrealized loss of $ 2,000 , respectively, for the change in fair value of equity investment securities in "Other non-interest income."

At June 30, 2026, Peoples' investment in equity investment securities was comprised largely of common stocks issued by various unrelated bank holding companies.

There were no equity investment securities of a single issuer that exceeded 10% of Peoples' stockholders' equity at June 30, 2026.

Pledged Securities

3 unchanged sentences

Carrying Amount

(Dollars in thousands) March 31, 2026 December 31, 2025

(Dollars in thousands) June 30, 2026 December 31, 2025

Securing public and trust department deposits, and repurchase agreements:

6 unchanged sentences

Accrued interest receivable is not included in investment securities balances, and is presented in the “Other assets” line of the Unaudited Consolidated Balance Sheets, with no recorded allowance for credit losses.

Interest receivable on investment securities was $ 9.9 million at March 31, 2026 and $ 9.0 million at December 31, 2025.

Interest receivable on investment securities was $ 8.7 million at June 30, 2026 and $ 9.0 million at December 31, 2025.

Note 4 Loans and Leases

2 unchanged sentences

The major classifications of loan balances (in each case, net of deferred fees and costs) excluding loans held for sale, were as follows:

(Dollars in thousands) March 31,

(Dollars in thousands) June 30,

2026 December 31, 2025

10 unchanged sentences

Total loans, at amortized cost $ 6,821,580 $ 6,756,907

The table above includes net deferred loan origination costs of $ 20.2 million and $ 20.0 million at March 31, 2026 and at December 31, 2025, respectively.

The remaining unamortized net discount included in the amortized cost of loans and leases was $ 8.4 million and $ 9.7 million at March 31, 2026 and at December 31, 2025, respectively.

The table above includes net deferred loan origination costs of $ 18.9 million and $ 20.0 million at June 30, 2026 and at December 31, 2025, respectively.

The remaining unamortized net discount included in the amortized cost of loans and leases was $ 7.2 million and $ 9.7 million at June 30, 2026 and at December 31, 2025, respectively.

Accrued interest receivable is not included within the loan balances, but is presented in the “Other assets” line of the Unaudited Consolidated Balance Sheets, with no recorded allowance for credit losses.

Total interest receivable on loans was $ 23.9 million at March 31, 2026 and $ 25.0 million at December 31, 2025.

Total interest receivable on loans was $ 22.2 million at June 30, 2026 and $ 25.0 million at December 31, 2025.

Nonaccrual and Past Due Loans

2 unchanged sentences

The amortized cost of loans on nonaccrual status and of loans delinquent for 90 days or more and accruing was as follows:

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

(Dollars in thousands) Nonaccrual (a)

1 unchanged sentence

Accruing Loans 90+ Days Past Due

Construction $ 293 $ — $ — $ —

Commercial real estate, other 6,802 3,874 4,056 579

7 unchanged sentences

Total loans, at amortized cost $ 33,101 $ 7,838 $ 36,886 $ 6,156

(a) There were $ 2.5 million and $ 1.8 million of nonaccrual loans for which there was no allowance for credit losses at March 31, 2026 and at December 31, 2025, respectively.

During the first three months of 2026, nonaccrual loans were flat when compared to at December 31, 2025, with decreases in nonaccrual leases and in commercial and industrial loans being offset by an increase in other commercial real estate loans.

The decrease in accruing loans 90+ days past due at March 31, 2026, when compared to at December 31, 2025, was primarily due to reductions in residential real estate loans.

(a) There were $ 2.4 million and $ 1.8 million of nonaccrual loans for which there was no allowance for credit losses at June 30, 2026 and at December 31, 2025, respectively.

During the first six months of 2026, nonaccrual loans decreased compared to at December 31, 2025, which was primarily due to decreases in nonaccrual commercial and industrial loans and leases, partially offset by an uptick in nonaccrual other commercial real estate loans.

The increase in accruing loans 90+ days past due at June 30, 2026, when compared to at December 31, 2025, was primarily due to other commercial real estate loans, driven by two loans totaling $ 3.8 million.

The following table presents the aging of the amortized cost of past due loans:

1 unchanged sentence

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

March 31, 2026

June 30, 2026

Construction $ 293 $ — $ — $ 293 $ 294,057 $ 294,350

21 unchanged sentences

Total loans, at amortized cost $ 41,578 $ 17,239 $ 34,410 $ 93,227 $ 6,663,680 $ 6,756,907

Delinquency trends improved as 98.9 % of Peoples' loan portfolio was considered “current” at March 31, 2026, compared to 98.6 % at December 31, 2025.

Delinquency trends improved slightly, as 99.1 % of Peoples' loan portfolio was considered “current” at June 30, 2026, compared to 98.6 % at December 31, 2025.

Pledged Loans

2 unchanged sentences

Loans pledged are summarized as follows:

(Dollars in thousands) March 31, 2026 December 31, 2025

(Dollars in thousands) June 30, 2026 December 31, 2025

Loans pledged to FHLB $ 1,271,534 $ 1,347,242

30 unchanged sentences

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

The following table summarizes the risk category of loans within Peoples' loan portfolio, including acquired loans, based upon the most recent analysis performed at March 31, 2026:

The following table summarizes the risk category of loans within Peoples' loan portfolio, including acquired loans, based upon the most recent analysis performed at June 30, 2026:

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

8 unchanged sentences

Substandard 6,181 — 7,705 1,477 4,453 49,859 120 — 69,795

Doubtful — — — — — 10 — — 10

Total 112,521 348,509 208,668 319,476 329,086 923,899 41,004 — 2,283,163

4 unchanged sentences

Substandard 688 1,135 3,199 218 7,633 13,930 8,134 740 34,937

Doubtful — — — — — 24 — — 24

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

(Dollars in thousands) 2026 2025 2024 2023 2022 Prior Revolving Loans Total

Doubtful — — — — — 29 — — 29

Total 281,326 333,238 214,805 102,458 72,639 374,530 310,821 3,201 1,689,817

2 unchanged sentences

Pass 215,165 50,332 517 1 — — — — 266,015

Substandard — — 455 — — — — — 455

Total 215,165 50,332 517 1 — — — — 266,015

36 unchanged sentences

Total current period gross charge-offs (a) $ 1,065 $ 2,468 $ 3,213 $ 5,327 $ 1,264 $ 1,188 $ 14,525

(a) Current period gross charge-offs are for the three months ended as of March 31, 2026.

(a) Current period gross charge-offs are for the six months ended as of June 30, 2026.

The following table summarizes the risk category of loans within Peoples' loan portfolio, including acquired loans, based upon the then most recent analysis performed at December 31, 2025:

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

(Dollars in thousands) March 31, 2026 December 31, 2025

(Dollars in thousands) June 30, 2026 December 31, 2025

Construction $ 11,283 $ —

2 unchanged sentences

Leases 738 2,385

Residential real estate 647 —

Total collateral dependent loans $ 30,739 $ 7,738

Collateral dependent loans increased at March 31, 2026, compared to at December 31, 2025, and were primarily impacted by one large relationship consisting of one other commercial real estate loan and one construction loan, totaling $ 7.4 million and $ 3.1 million, respectively.

Collateral dependent loans increased at June 30, 2026, compared to at December 31, 2025, and were driven by the inclusion of two large construction loans, associated with one customer relationship, which totaled approximately $ 11.3 million.

The increase in other commercial real estate loans was driven primarily by a single loan totaling approximately $ 12.8 million.

Modifications for Borrowers Experiencing Financial Difficulty

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The allowance for credit losses for loans modified for borrowers experiencing financial difficulty is determined based on the allowance for credit losses policy as described in "Note 1 Summary of Significant Accounting Policies" of the Notes to the Consolidated Financial Statements included in Peoples' 2025 Form 10-K.

The following tables display the amortized cost of loans that were restructured during the three months ended March 31, 2026 and March 31, 2025, presented by loan classification.

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

During the Three Months Ended March 31, 2026

The following tables display the amortized cost of loans that were restructured during the three and six months ended June 30, 2026 and June 30, 2025, presented by loan classification.

(Dollars in thousands) Term Extension Percentage of Total by Loan Category (a)(b)

During the Three Months Ended June 30, 2026

Commercial real estate, other $ 1,000 0.04 %

Commercial and industrial 474 0.03 %

Home equity lines of credit 73 0.03 %

Total $ 1,547 0.02 %

During the Three Months Ended June 30, 2025

Commercial real estate, other $ 2,602 0.12 %

Commercial and industrial 2,477 0.18 %

Residential real estate 192 0.02 %

Total $ 5,271 0.08 %

During the Three Months Ended March 31, 2025

(a) Based on the amortized cost basis as of period end, divided by the period end amortized cost basis of the corresponding class of financing receivable.

(b) The table presented above excludes loans that were paid off or otherwise no longer included in the loan portfolio as of period end.

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

During the Six Months Ended June 30, 2026

Commercial real estate, other $ — $ 1,874 $ 1,874 0.08 %

Commercial and industrial 492 1,565 2,057 0.12 %

Residential real estate — 126 126 0.01 %

Home equity lines of credit — 73 73 0.03 %

Total $ 492 $ 3,638 $ 4,130 0.06 %

During the Six Months Ended June 30, 2025

Commercial real estate, other — 4,441 4,441 0.20 %

Commercial and industrial — 8,638 8,638 0.61 %

Residential real estate — 192 192 0.02 %

Total $ — $ 13,271 $ 13,271 0.20 %

(a) Based on the amortized cost basis as of period end, divided by the period end amortized cost basis of the corresponding class of financing receivable.

(b) The table presented above excludes loans that were paid off or otherwise no longer included in the loan portfolio as of period end.

The following tables summarize the impacts of loan modifications and payment deferrals made to loans during the three months ended March 31, 2026 and March 31, 2025, presented by loan classification.

The following tables summarize the impacts of loan modifications made to loans during the three and six months ended June 30, 2026 and June 30, 2025, presented by loan classification.

Weighted-Average Term Extension

During the Three Months Ended March 31, 2026

During the Three Months Ended June 30, 2026

Commercial real estate, other 8

Commercial and industrial 8

Home equity lines of credit 119

During the Three Months Ended June 30, 2025

Commercial real estate, other 4

Commercial and industrial 5

Residential real estate 174

During the Three Months Ended March 31, 2025

Commercial real estate 3

Weighted-Average Term Extension

During the Six Months Ended June 30, 2026

Commercial real estate, other 10

Commercial and industrial 8

Residential real estate 37

Home equity lines of credit 119

During the Six Months Ended June 30, 2025

Commercial real estate, other 4

Commercial and industrial 7

Residential real estate 174

The following tables display the amortized cost of loans that received a completed modification or payment deferral within the previous 12 months and that had a payment default in the periods presented.

For purposes of this disclosure, Peoples defines loans that had a payment default as loans that were 90 days or more past due following a modification.

No such loans defaulted in the three or six months ended June 30, 2026.

Term Extension (a)

For the Three Months Ended March 31, 2026

For the Three Months Ended June 30, 2025

Commercial real estate, other $ 494

Total loans that subsequently defaulted $ 494

For the Three Months Ended March 31, 2025

For the Six Months Ended June 30, 2025

Commercial real estate, other $ 494

Commercial and industrial 18

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Excludes loans that liquidated either through foreclosure, deed-in-lieu of foreclosure, or a short sale.

The following table displays an aging analysis of loans that were modified during the 12 months prior to March 31, 2026 and March 31, 2025, respectively, presented by classification and class of financing receivable.

As of March 31, 2026

The following table displays an aging analysis of loans that were modified during the 12 months prior to June 30, 2026 and June 30, 2025, respectively, presented by classification and class of financing receivable.

As of June 30, 2026

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

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

As of March 31, 2025

As of June 30, 2025

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

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Following the reasonable and supportable forecast period, Peoples reverts the macroeconomic variables to their long run average over a four-quarter reversion period.

Changes in the allowance for credit losses for the three months ended March 31, 2026 and March 31, 2025 are summarized below:

Changes in the allowance for credit losses for the three and six months ended June 30, 2026 and June 30, 2025 are summarized below:

(Dollars in thousands) Beginning Balance, March 31, 2026

Provision for (Recovery of) Credit Losses (a) Charge-offs Recoveries Ending Balance, June 30, 2026

Construction $ 1,512 $ 182 $ — $ — $ 1,694

Commercial real estate, other 20,803 175 ( 167 ) — 20,811

Commercial and industrial 21,759 ( 739 ) ( 222 ) 26 20,824

Premium finance 686 933 ( 65 ) 15 1,569

Leases 15,304 2,465 ( 4,221 ) 818 14,366

Residential real estate 6,643 ( 22 ) ( 115 ) 53 6,559

Home equity lines of credit 1,643 117 ( 32 ) — 1,728

Consumer, indirect 7,760 1,387 ( 1,437 ) 596 8,306

Consumer, direct 2,156 166 ( 205 ) 22 2,139

Deposit account overdrafts 126 232 ( 302 ) 51 107

Total $ 78,392 $ 4,896 $ ( 6,766 ) $ 1,581 $ 78,103

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

(Dollars in thousands) Beginning Balance, March 31, 2025 Provision for (Recovery of) Credit Losses (a) Charge-offs Recoveries Ending Balance, June 30, 2025

Construction $ 1,156 $ 191 $ — $ — $ 1,347

Commercial real estate, other 17,155 24 ( 35 ) — 17,144

Commercial and industrial 12,783 5,610 ( 556 ) 17 17,854

Premium finance 646 238 ( 93 ) 3 794

Leases 13,575 10,896 ( 5,099 ) 261 19,633

Residential real estate 6,786 ( 723 ) — 50 6,113

Home equity lines of credit 1,863 ( 37 ) ( 12 ) — 1,814

Consumer, indirect 8,696 191 ( 1,693 ) 449 7,643

Consumer, direct 2,474 ( 144 ) ( 96 ) 14 2,248

Deposit account overdrafts 98 167 ( 245 ) 71 91

Total $ 65,232 $ 16,413 $ ( 7,829 ) $ 865 $ 74,681

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

(Dollars in thousands) Beginning Balance, December 31, 2025

Provision for (Recovery of) Credit Losses (a) Charge-offs Recoveries Ending Balance, March 31, 2026

Provision for (Recovery of) Credit Losses (a) Charge-offs Recoveries Ending Balance, June 30, 2026

Construction $ 1,391 $ 303 $ — $ — $ 1,694

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

(Dollars in thousands) Beginning Balance, December 31, 2024 Provision for (Recovery of) Credit Losses (a) Charge-offs Recoveries Ending Balance, March 31, 2025

(Dollars in thousands) Beginning Balance,

December 31, 2024 Provision for (Recovery of) Credit Losses (a) Charge-offs Recoveries Ending Balance, June 30, 2025

Construction $ 878 $ 469 $ — $ — $ 1,347

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

During the first quarter of 2026, Peoples recorded a total provision for credit losses on loans of $ 9.4 million, which was primarily driven by net charge-offs and a deterioration in the macroeconomic forecasts used within the current expected credit loss ("CECL") model.

Net charge-offs for the first quarter of 2026 were $ 6.6 million, primarily driven by the North Star Leasing division.

The increase in the allowance for credit losses at March 31, 2026 when compared to at December 31, 2025, was driven by a deterioration of economic forecasts.

During the first quarter of 2025, Peoples recorded a provision for credit losses of $ 10.0 million, which was driven by net charge-offs.

Net charge-offs for the first quarter of 2025 were $ 8.1 million, primarily driven by an increase in charge-offs on leases originated by the North Star Leasing division.

The increase in the allowance for credit losses at March 31, 2025, when compared to at December

31, 2024, was attributable to a deterioration of macroeconomic conditions used within the CECL model, an increase in reserves on individually analyzed loans, and loan growth.

Peoples had recorded allowances for unfunded commitments of $ 2.8 million and $ 2.5 million as of March 31, 2026 and as of December 31, 2025, respectively.

During the second quarter of 2026, Peoples recorded a total provision for credit losses on loans of $ 4.9 million, which was primarily driven by net charge-offs and an increase in individually-analyzed loans, partially offset by a reduction of balances within loan segments with higher loss rates.

Net charge-offs for the second quarter of 2026 were $ 5.2 million, primarily driven by our NSL division.

The decrease in the allowance for credit losses at June 30, 2026 when compared to at March 31, 2026, was driven by a reduction of balances within higher loss rate segments, partially offset by an increase in individually-analyzed loans.

During the second quarter of 2025, Peoples recorded a provision for credit losses of $ 16.4 million, which was driven by (i) net charge-offs, (ii) an increase in reserves for individually analyzed loans and leases, (iii) an increase in reserves for leases originated by our North Star Leasing division, (iv) a periodic refresh in loss drivers utilized within the CECL model, (v) deterioration in the economic forecasts used within the CECL model, and (vi) loan growth.

Net charge-offs for the second quarter of 2025 were $ 7.0 million, primarily driven by our NSL division.

Peoples had recorded allowances for unfunded commitments of $ 2.6 million and $ 2.5 million as of June 30, 2026 and as of December 31, 2025, respectively.

The allowance for unfunded commitments (also referred to as "unfunded commitment liability") is presented in the “Accrued expenses and other liabilities” line of the Unaudited Consolidated Balance Sheets.

The change in the allowance for unfunded commitments is also reflected in the "Provision for (recovery of) credit losses" line of the Unaudited Consolidated Statements of Operations.

The change in the allowance for unfunded commitments is also reflected in the "Provision for credit losses" line of the Unaudited Consolidated Statements of Operations.

Note 5 Goodwill and Other Intangible Assets

The following table details changes in the recorded amount of goodwill:

For the Three Months Ended For the Year Ended

(Dollars in thousands) March 31, 2026 December 31, 2025

For the Six Months Ended For the Year Ended

(Dollars in thousands) June 30, 2026 December 31, 2025

Goodwill, beginning of period $ 363,199 $ 363,199

2 unchanged sentences

Other Intangible Assets

Other intangible assets were comprised of the following at March 31, 2026 , and at December 31, 2025 :

Other intangible assets were comprised of the following at June 30, 2026 , and at December 31, 2025 :

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

March 31, 2026

June 30, 2026

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

11 unchanged sentences

Total other intangibles $ 30,120

Th e following table details estimated aggregate future amortization of other intangible assets at March 31, 2026:

Th e following table details estimated aggregate future amortization of other intangible assets at June 30, 2026:

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

Remaining nine months of 2026 $ 2,802 $ 2,277 $ 12 $ 5,091

Remaining six months of 2026 $ 1,868 $ 1,518 $ 8 $ 3,394

2027 3,043 2,188 — 5,231

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Peoples’ deposit balances were comprised of the following:

(Dollars in thousands) March 31, 2026 December 31, 2025

(Dollars in thousands) June 30, 2026 December 31, 2025

Retail certificates of deposits ("CDs"):

3 unchanged sentences

Interest-bearing deposit accounts 1,094,873 1,092,252

Savings accounts 918,557 887,402

Money market deposit accounts 995,487 945,313

Savings accounts 915,505 887,402

Governmental deposit accounts 755,024 739,939

3 unchanged sentences

Total deposits $ 7,456,365 $ 7,610,224

Uninsured deposits were $ 2.1 billion a t March 31, 2026 and $ 2.0 billion at December 31, 2025 .

Uninsured deposits were $ 2.0 billion a t June 30, 2026 and $ 2.0 billion at December 31, 2025 .

Uninsured deposit amounts are estimated based on the portion of the respective customer account balances that exceeded the FDIC limit of $250,000.

Peoples pledges investment securities against certain governmental deposit accounts, which covered $ 678.1 million and $ 615.6 million of the uninsured deposit balances at March 31, 2026 and at December 31, 2025, respectively .

Peoples pledges

investment securities against certain governmental deposit accounts, which covered $ 595.7 million and $ 615.6 million of the uninsured deposit balances at June 30, 2026 and at December 31, 2025, respectively .

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

(Dollars in thousands) March 31, 2026 December 31, 2025

The amounts presented do not consider the insured portion of the deposits.

(Dollars in thousands) June 30, 2026 December 31, 2025

3 months or less $ 138,864 $ 152,991

5 unchanged sentences

(Dollars in thousands) Retail Brokered Total

Remaining nine months ending December 31, 2026 $ 1,597,701 $ 105,498 $ 1,703,199

Remaining six months ending December 31, 2026 $ 1,164,930 $ 68,743 $ 1,233,673

Year ending December 31, 2027 692,446 87,095 779,541

4 unchanged sentences

Total CDs $ 1,876,056 $ 225,621 $ 2,101,677

At March 31, 2026, Peoples had five effective interest rate swaps, with an aggregate notional value of $ 45.0 million, a ll of which hedge interest payments on brokered CDs.

At June 30, 2026, Peoples had four effective interest rate swaps, with an aggregate notional value of $ 35.0 million, all of which hedge interest payments on brokered CDs.

The brokered CDs are expected to be extended every 90 days through the maturity dates of the swaps.

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Note 7 Stockholders’ Equity

The following table details the progression in Peoples’ common shares and treasury stock during the three months ended March 31, 2026:

The following table details the progression in Peoples’ common shares issued and treasury stock during the six months ended June 30, 2026:

Common Shares Treasury

1 unchanged sentence

Changes related to stock-based compensation awards:

Release of restricted common shares — 59,580

Cancellation of restricted common shares — 7,683

Grant of restricted common shares — ( 256,199 )

Grant of unrestricted common shares — —

Restricted shares — ( 180,962 )

Grant of unrestricted shares — ( 900 )

Purchase of treasury stock — 6,464

Disbursed out of treasury stock — ( 10,545 )

Common shares repurchased under share repurchase program — —

Common shares issued under dividend reinvestment plan 11,659 —

Common shares issued under compensation plan for Boards of Directors

Common shares issued under employee stock purchase plan

Shares at March 31, 2026 36,848,602 1,017,603

Shares issued under dividend reinvestment plan 23,901 —

Shares issued under compensation plan for Boards of Directors

Shares issued under employee stock purchase plan

Shares at June 30, 2026 36,860,844 1,008,699

On January 28, 2021, Peoples' Board of Directors approved a share repurchase program authorizing Peoples to purchase up to an aggregate of $ 30.0 million of Peoples' outstanding common shares.

As of March 31, 2026, Peoples had repurchased an aggregate of 501,999 common shares totaling $ 14.2 million under the share repurchase program.

During the first quarters of 2026 and 2025, there were no purchases under the share repurchase program.

As of June 30, 2026, Peoples had repurchased an aggregate of 501,999 common shares totaling $ 14.2 million under the share repurchase program.

During the first six months of 2026, there were no purchases under the share repurchase program.

Under Peoples' Amended Articles of Incorporation, Peoples is authorized to issue up to 50,000 preferred shares, in one or more series, having such voting powers, designations, preferences, rights, qualifications, limitations and restrictions as designated by Peoples' Board of Directors.

At March 31, 2026, Peoples had no preferred shares issued or outstanding.

On January 19, 2026, Peoples' Board of Directors declared a quarterly cash dividend of $ 0.41 per common share, payable on February 17, 2026, to shareholders of record on February 2, 2026.

On April 20, 2026, People's Board of Directors declared a quarterly cash dividend of $ 0.42 per common share, payable on May 18, 2026 to shareholders of record on May 4, 2026.

The following table details the cash dividends declared per common share during the first two quarters of 2026 as of April 2026 and the comparable periods of 2025:

At June 30, 2026, Peoples had no preferred shares issued or outstanding.

The following table details the cash dividends declared per common share during the first two quarters of 2026 and the comparable periods of 2025:

First quarter $ 0.41 $ 0.40

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Total dividends declared $ 0.83 $ 0.81

On July 20, 2026, Peoples' Board of Directors declared a quarterly cash dividend of $ 0.42 per common share, payable on August 17, 2026, to shareholders of record on August 3, 2026.

Accumulated Other Comprehensive (Loss) Income

The following table details the change in the components of Peoples’ accumulated other comprehensive (loss) income during the three months ended March 31, 2026, as related items impact the income statement:

The following table details the change in the components of Peoples’ accumulated other comprehensive (loss) income during the six months ended June 30, 2026, as related items impact the income statement:

(Dollars in thousands) Unrealized (Loss) Gain on Securities Unrealized Gain (Loss) on Cash Flow Hedges Accumulated Other Comprehensive (Loss) Income

Balance, December 31, 2025 $ ( 71,019 ) $ 391 $ ( 70,628 )

Amounts reclassified from AOCI, net of income taxes 6,297 ( 243 ) 6,054

Other comprehensive income (loss), net of reclassifications and tax

( 6,512 ) 225 ( 6,287 )

Balance, March 31, 2026 $ ( 76,438 ) $ 396 $ ( 76,042 )

Balance, June 30, 2026 $ ( 71,234 ) $ 373 $ ( 70,861 )

Note 8 Employee Benefit Plans

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

Matching contributions made by Peoples totaled $ 1.5 million during the three months ended March 31, 2026 and the three months ended March 31, 2025.

Matching contributions made by Peoples totaled $ 3.0 million during both the six months ended June 30, 2026 and June 30, 2025.

Note 9 Earnings Per Common Share

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

Three Months Ended

Three Months Ended Six Months Ended

June 30, June 30,

(Dollars in thousands, except per common share data) 2026 2025 2026 2025

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

At March 31, 2026, Peoples had entered into five interest rate swap contracts with an aggregate notional value of $ 45.0 million.

At June 30, 2026, Peoples had entered into four interest rate swap contracts with an aggregate notional value of $ 35.0 million.

Peoples will pay a fixed rate of interest for up to three years while receiving a floating rate component of interest equal to the term SOFR.

The interest received on the floating rate component is intended to offset the interest paid on rolling three-month brokered CDs or FHLB advances, which will continue to be rolled through the life of the interest rate swaps.

At both March 31, 2026 and December 31, 2025, the interest rate swaps were

designated as cash flow hedges of $ 45.0 and $ 45.0 million, respectively, in brokered CDs, which are expected to be extended every 90 days through the maturity dates of the interest rate swaps.

At June 30, 2026 and December 31, 2025, the interest rate swaps were designated as cash flow hedges of $ 35.0 and $ 45.0 million, respectively, in brokered CDs, which are expected to be extended every 90 days through the maturity dates of the interest rate swaps.

For derivative financial instruments designated as cash flow hedges and deemed highly effective, all changes in the fair value of each derivative financial instrument is reported in accumulated other comprehensive (loss) income ("AOCI") (outside of earnings), net of tax, and are reclassified to interest expense as interest payments are made or received on Peoples' variable-rate liabilities.

1 unchanged sentence

The reset dates and the payment dates on the brokered CDs or FHLB advances are matched to the reset dates and payment dates on the receipt of the term SOFR of the swaps to ensure effectiveness of the cash flow hedge.

For the three months ended March 31, 2026, and 2025, Peoples recorded reclassifications of gains to earnings of $ 0.2 million and $ 0.4 million, respectively.

For the six months ended June 30, 2026, and 2025, Peoples recorded reclassifications of gains to earnings of $ 0.3 million and $ 0.7 million, respectively.

During the next 12 months, Peoples estimates that $ 0.3 million of AOCI will be reclassified as an addition to interest expense.

The following table summarizes information about the interest rate swaps designated as cash flow hedges:

(Dollars in thousands) March 31,

(Dollars in thousands) June 30,

2026 December 31,

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The following table presents changes in fair value and amounts reclassified from AOCI related to cash flow hedges and recorded in AOCI and in the Consolidated Statements of Comprehensive Income:

Three Months Ended

Three Months Ended Six Months Ended

June 30, June 30,

(Dollars in thousands) 2026 2025 2026 2025

Amount of gains (losses) recorded in AOCI, pre-tax $ 6 $ ( 661 )

Amount of losses recorded in AOCI, pre-tax $ 30 $ 341 $ 24 $ 1,002

The following table reflects the cash flow hedges, which are included in the Unaudited Consolidated Balance Sheets at fair value:

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therefore, each interest rate swap is accounted for as a standalone derivative financial instrument.

These interest rate swaps did not have a material impact on Peoples' results of operations or financial condition at or for the three months ended March 31, 2026, or at or for the year ended December 31, 2025.

These interest rate swaps did not have a material impact on Peoples' results of operations or financial condition at or for the three and six months ended June 30, 2026, or at or for the year ended December 31, 2025.

The following table reflects the non-designated hedges, which are included in the Unaudited Consolidated Balance Sheets at fair value:

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

At March 31, 2026, Peoples Bank had $ 4.2 million of cash pledged, while counterparties had $ 3.9 million of cash pledged.

At June 30, 2026, Peoples Bank had $ 4.2 million of cash pledged, while counterparties had $ 5.2 million of cash pledged.

Peoples Bank had $ 4.2 million cash pledged and counterparties had $ 2.1 million of cash pledged at December 31, 2025.

Peoples Bank and the counterparties had no pledged investment securities at March 31, 2026 or at December 31, 2025.

Peoples Bank and the counterparties had no pledged investment securities at June 30, 2026 or at December 31, 2025.

Note 11 Stock-Based Compensation

Under the Peoples Bancorp Inc.

Fourth Amended and Restated 2006 Equity Plan (the "2006 Equity Plan"), Peoples may grant, among other awards, nonqualified stock options, incentive stock options, restricted common share awards, stock appreciation rights, performance units and unrestricted common share awards to employees and non-employee directors.

The total number of common shares available under the 2006 Equity Plan is 1,493,297 .

performance units and unrestricted common share awards to employees and non-employee directors.

The total number of common shares available under the 2006 Equity Plan was 1,493,297 at June 30, 2026.

Since February 2009, Peoples has granted restricted common shares to employees, and periodically to non-employee directors, subject to the terms and conditions prescribed by the 2006 Equity Plan.

5 unchanged sentences

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

In the first three months of 2026, Peoples granted an aggregate of 274,781 restricted common shares subject to performance-based vesting to officers and key employees with restrictions that will lapse three years after the grant date;

In the first six months of 2026, Peoples granted an aggregate of 230,712 restricted common shares subject to performance-based vesting to officers and key employees with restrictions that will lapse three years after the grant date;

provided that in order for the restricted common shares to vest in full, Peoples must have reported positive net income and maintained a well-capitalized status by regulatory standards for each of the three fiscal years preceding the vesting date.

Awards issued in the first quarter of 2026 feature both time-based and performance-based award components, with the performance-based awards tied to Peoples' return on tangible common equity and total shareholder return performance over a three-year period relative to the results of other banks.

The following table summarizes the changes to Peoples’ outstanding restricted common shares for the three months ended March 31, 2026:

There were no similar awards issued in the second quarter of 2026.

The following table summarizes the changes to Peoples’ restricted unvested common shares for the six months ended June 30, 2026:

Time-Based Vesting Performance-Based Vesting

Number of Common Shares Weighted-Average Grant Date Fair Value Number of Common Shares Weighted-Average Grant Date Fair Value

Outstanding at January 1, 2026 127,672 $ 28.49 547,911 $ 30.08

January 1, 2026 127,672 $ 28.49 555,561 $ 30.08

Awarded 71,821 32.99 230,712 33.56

1 unchanged sentence

Forfeited ( 8,274 ) 32.10 ( 8,876 ) 30.89

Outstanding at March 31, 2026

June 30, 2026

186,172 $ 30.06 615,422 $ 31.31

The intrinsic value for restricted common shares released was $ 5.6 million for the three months ended March 31, 2026, compared to $ 4.8 million for the three months ended March 31, 2025.

The intrinsic value for restricted common shares released was $ 5.7 million for the six months ended June 30, 2026, and for the six months ended June 30, 2025.

Stock-Based Compensation

4 unchanged sentences

The following table summarizes the amount of stock-based compensation expense and related tax benefit recognized for each period:

Three Months Ended

Three Months Ended Six Months Ended

June 30, June 30,

(Dollars in thousands) 2026 2025 2026 2025

8 unchanged sentences

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

Total unrecognized stock-based compensation expense related to unvested restricted common share awards was $ 11.4 million at March 31, 2026, which will be recognized over a weighted-average period of 2.3 years.

Total unrecognized stock-based compensation expense related to unvested restricted common share awards was $ 10.1 million at June 30, 2026, which will be recognized over a weighted-average period of 2.2 years.

Note 12 Revenue

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

Three Months Ended

Three Months Ended Six Months Ended

June 30, June 30,

(Dollars in thousands) 2026 2025 2026 2025

25 unchanged sentences

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

These contract liabilities are recognized as income over time, during the period in which the performance obligations are fulfilled.

The following table details the changes in Peoples' contract assets and contract liabilities for the three-month period ended March 31, 2026:

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

The following table details the changes in Peoples' contract assets and contract liabilities for the six-month period ended June 30, 2026:

Contract Assets Contract Liabilities

3 unchanged sentences

Additional deferred income — 7,101

Receipt of income previously receivable ( 79 ) —

Recognition of income previously deferred — ( 7,451 )

Balance, March 31, 2026 $ 973 $ 5,182

Balance, June 30, 2026 $ 1,012 $ 5,498

Note 13 Leases

3 unchanged sentences

Lessor Arrangements

Peoples began originating leases with the acquisition of NSL in 2021 and grew its portfolio with the acquisition of Vantage in 2022.

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

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

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

Certain leases contain renewal options, which are not included in the lease term or lease receivable, as they are not considered by Peoples to be reasonable certain as they are at the discretion of the lessee.

When Peoples originates an operating lease, it records an operating lease asset recognized in “Other assets” which is depreciated over its useful life.

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The table below details Peoples' lease income:

Three Months Ended

(Dollars in thousands) March 31, 2026 March 31, 2025

Three Months Ended Six Months Ended

(Dollars in thousands) June 30, 2026 June 30, 2025 June 30, 2026 June 30, 2025

Interest and fees on leases (a) $ 8,180 $ 10,287 $ 16,758 $ 20,485

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The following table summarizes the net investment in leases, which is included in "Loans and leases, net of deferred fees and costs" on the Unaudited Consolidated Balance Sheets:

(Dollars in thousands) March 31, 2026 December 31, 2025

(Dollars in thousands) June 30, 2026 December 31, 2025

Lease payments receivable, at amortized cost $ 373,972 $ 393,089

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(Dollars in thousands) Balance

Remaining nine months ending December 31, 2026 $ 77,584

Remaining six months ending December 31, 2026 $ 84,350

Year ending December 31, 2027 72,016

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Certain leases contain rent escalation clauses calling for rent increases over the term of the lease, which are included in the calculation of the lease liability.

At March 31, 2026, Peoples did not have any leases that met the criteria for finance leases.

At June 30, 2026, Peoples did not have any leases that met the criteria for finance leases.

Right of Use ("ROU") assets represent the right to use an underlying asset for the lease term and lease liabilities represent an obligation to make lease payments arising from the lease.

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The table below details Peoples' lease expense, which is included in "Net occupancy and equipment expense" in the Unaudited Consolidated Statements of Operations:

Three Months Ended

(Dollars in thousands) March 31, 2026 March 31, 2025

Three Months Ended Six Months Ended

(Dollars in thousands) June 30, 2026 June 30, 2025 June 30, 2026 June 30, 2025

Operating lease expense $ 629 $ 637 $ 1,253 $ 1,318

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Total lease expense $ 1,025 $ 1,329 $ 2,043 $ 2,414

Lease payments are discounted using Peoples’ incremental borrowing rate, consistent with what Peoples would pay to borrow on a collateralized basis over a term similar to each lease.

Peoples utilizes an incremental borrowing rate to determine the present value of lease payments for each lease, as the lease agreements do not provide an implicit rate.

The estimated incremental borrowing rate reflects a secured rate and is based on the term of the lease.

The following table details the ROU assets, the lease liabilities and other information related to Peoples' operating leases at the dates shown:

(Dollars in thousands) March 31, 2026 December 31, 2025

(Dollars in thousands) June 30, 2026 December 31, 2025

Other assets $ 8,433 $ 9,340

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Additions for ROU assets obtained during the year $ 153 $ 1,333

During both the three months ended March 31, 2026 and 2025, Peoples paid cash of $ 0.6 million and $ 0.7 million for operating leases, respectively.

During the three months ended June 30, 2026 and 2025, Peoples paid cash of $ 0.6 million and $ 0.7 million for operating leases, respectively.

During both the six months ended June 30, 2026 and 2025, Peoples paid cash of $ 1.3 million, for operating leases.

The following table summarizes the maturity of remaining lease liabilities:

(Dollars in thousands) Balance

Remaining nine months ending December 31, 2026 $ 1,789

Remaining six months ending December 31, 2026 $ 1,252

Year ending December 31, 2027 $ 2,208

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Total lease liabilities $ 9,004

Note 14 Subsequent Events

The Company has evaluated all events occurring after March 31, 2026 through April 30, 2026, the date the interim unaudited financial statements for the period ending March 31, 2026 were available to be issued, to determine whether any event required either recognition or disclosure in the financial statements.

Merger Agreement

On April 21, 2026 Peoples announced the signing of a definitive agreement and plan of merger (the "Merger Agreement") pursuant to which Peoples will acquire Citizens National Corporation (“Citizens"), a bank holding company headquartered in Paintsville, Kentucky, and the parent company of Citizens Bank of Kentucky, Inc.

(“Citizens Bank”), in a cash and stock transaction.

Under the terms of the Merger Agreement, Citizens will merge with and into Peoples (the “Merger”), and Citizens Bank will subsequently merge with and into Peoples’ wholly owned subsidiary, Peoples Bank, in a transaction valued at approximately $ 76.6 million.

As of March 31, 2026, Citizens had, on a consolidated basis, $ 686 million in total assets, which included $ 342 million in gross loans, and $ 586 million in total deposits.

According to the terms of the Merger Agreement, which has been unanimously approved by the Boards of Directors of both companies, shareholders of Citizens will receive 2.10 shares of Peoples common stock plus $ 8.00 in cash for each share of Citizens’ common stock.

The transaction is intended to qualify as a tax-free reorganization for federal income tax purposes and to provide a tax-free exchange for Citizens stockholders for the stock consideration received.

The acquisition is expected to close during the second half of 2026, subject to the satisfaction of customary closing conditions, including regulatory approvals and the approval of the shareholders of Citizens.

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

What changed 10-Q

Item 1. Financial Statements