PEOPLES BANCORP INC 10-Q

ITEM 1. FINANCIAL STATEMENTS PEOPLES BANCORP INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS June 30, 2026 December 31, 2025 (Dollars in thousands) (Unaudited) Assets Cash and cash equivalents: Cash and balances due from banks $ 106,562 $ 107,864 Interest-bearing deposits in other banks 73,163 81,087 Total cash and cash equivalents 179,725 188,951 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 $ 802,716 at June 30, 2026 and $ 867,714 at December 31, 2025) (a) 867,332 922,837 Other investments 76,099 68,656 Total investment securities (a) 1,817,481 1,975,860 Loans and leases, net of deferred fees and costs (b) 6,821,580 6,756,907 Allowance for credit losses ( 78,103 ) ( 75,676 ) Net loans and leases (c) 6,743,477 6,681,231 Loans held for sale 2,568 2,667 Bank premises and equipment, net of accumulated depreciation 97,578 100,508 Bank owned life insurance 150,615 148,264 Goodwill 363,199 363,199 Other intangible assets 26,764 30,120 Other assets 158,754 158,830 Total assets $ 9,540,161 $ 9,649,630 Liabilities Deposits: Non-interest-bearing $ 1,593,799 $ 1,545,428 Interest-bearing 5,862,566 6,064,796 Total deposits 7,456,365 7,610,224 Short-term borrowings 588,653 530,285 Long-term borrowings 156,253 204,138 Accrued expenses and other liabilities 102,339 98,381 Total liabilities $ 8,303,610 $ 8,443,028 Stockholders’ equity 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 Retained earnings 463,953 436,748 Accumulated other comprehensive loss, net of deferred income taxes ( 70,861 ) ( 70,628 ) 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 ) Total stockholders’ equity $ 1,236,551 $ 1,206,602 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 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." (c) Also referred to throughout this Quarterly Report on Form 10-Q as "net loans." See Notes to the Unaudited Condensed Consolidated Financial Statements 3 Table of Contents PEOPLES BANCORP INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) Three Months Ended Six Months Ended June 30, June 30, (Dollars in thousands, except per share data) 2026 2025 2026 2025 Interest income: Interest and fees on loans and leases $ 109,557 $ 108,816 $ 218,247 $ 216,118 Interest and dividends on taxable investment securities 16,208 15,593 32,734 30,965 Interest on tax-exempt investment securities 731 960 1,546 1,928 Other interest income 1,084 1,038 1,874 1,938 Total interest income 127,580 126,407 254,401 250,949 Interest expense: Interest on deposits 27,651 33,876 56,281 69,040 Interest on short-term borrowings 4,623 1,388 9,582 1,896 Interest on long-term borrowings 2,578 3,566 5,390 7,181 Total interest expense 34,852 38,830 71,253 78,117 Net interest income 92,728 87,577 183,148 172,832 Provision for credit losses 4,709 16,642 14,403 26,832 Net interest income after provision for credit losses 88,019 70,935 168,745 146,000 Non-interest income: Electronic banking income 6,543 6,272 12,470 12,157 Trust and investment income 5,986 5,281 11,591 10,342 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 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 Total non-interest income 20,378 26,880 48,632 53,979 Non-interest expense: Salaries and employee benefit costs 40,012 38,893 79,847 78,714 Data processing and software expense 7,850 7,356 15,386 14,361 Net occupancy and equipment expense 5,765 5,690 11,989 11,302 Professional fees 4,018 3,610 6,771 6,697 Electronic banking expense 2,225 2,018 4,306 4,043 Operating lease expense 1,797 1,053 3,601 2,038 Amortization of other intangible assets 1,697 2,211 3,394 4,424 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 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 Total non-interest expense 72,759 70,362 144,394 141,149 Income before income taxes 35,638 27,453 72,983 58,830 Income tax expense 7,685 6,241 16,024 13,282 Net income $ 27,953 $ 21,212 $ 56,959 $ 45,548 Earnings per common share - basic $ 0.79 $ 0.60 $ 1.61 $ 1.29 Earnings per common share - diluted $ 0.78 $ 0.59 $ 1.59 $ 1.28 Weighted-average number of common shares outstanding - basic 35,173,525 34,972,065 35,141,267 34,934,105 Weighted-average number of common shares outstanding - diluted 35,566,566 35,331,707 35,529,515 35,299,418 Cash dividends declared $ 15,107 $ 14,616 $ 29,754 $ 28,843 Cash dividends declared per common share $ 0.42 $ 0.41 $ 0.83 $ 0.81 See Notes to the Unaudited Condensed Consolidated Financial Statements 4 Table of Contents PEOPLES BANCORP INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) Three Months Ended 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 (loss): Available-for-sale investment securities: Gross unrealized holding (loss) gain arising during the period ( 1,419 ) 7,408 ( 8,110 ) 27,227 Related tax benefit (expense) 326 ( 1,727 ) 1,598 ( 6,347 ) Reclassification adjustment for net loss included in net income 8,181 — 8,181 2 Related tax expense ( 1,884 ) — ( 1,884 ) — Net effect on other comprehensive income (loss) 5,204 5,681 ( 215 ) 20,882 Cash flow hedges: Net gain (loss) arising during the period 125 ( 52 ) 293 ( 288 ) Related tax (expense) benefit ( 29 ) 12 ( 68 ) 67 Reclassification adjustment for net gain included in net income ( 155 ) ( 289 ) ( 317 ) ( 714 ) Related tax benefit 36 67 74 166 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 See Notes to the Unaudited Condensed Consolidated Financial Statements 5 Table of Contents PEOPLES BANCORP INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (Unaudited) Accumulated Other Comprehensive Loss Total Stockholders' Equity Common Shares Retained Earnings Treasury Stock (Dollars in thousands) Balance, March 31, 2026 $ 867,464 $ 451,107 $ ( 76,042 ) $ ( 26,489 ) $ 1,216,040 Net income — 27,953 — — 27,953 Other comprehensive income, net of tax — — 5,181 — 5,181 Cash dividends declared — ( 15,107 ) — — ( 15,107 ) Reissuance of treasury stock for common share awards 196 — — ( 196 ) — Reissuance of treasury stock for deferred compensation plan for Boards of Directors — — — 263 263 Repurchase of treasury stock in connection with employee incentive program and compensation plan for Boards of Directors — — — ( 106 ) ( 106 ) Common shares issued under dividend reinvestment plan 463 — — — 463 Common shares issued under compensation plan for Boards of Directors 43 — — 88 131 Common shares issued under employee stock purchase plan 78 — — 160 238 Stock-based compensation 1,495 — — — 1,495 Balance, June 30, 2026 $ 869,739 $ 463,953 $ ( 70,861 ) $ ( 26,280 ) $ 1,236,551 6 Table of Contents 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 7 Table of Contents 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 8 Table of Contents 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, 2024 $ 866,844 $ 388,109 $ ( 110,385 ) $ ( 32,978 ) $ 1,111,590 Net income — 45,548 — — 45,548 Other comprehensive income, net of tax — — 20,113 — 20,113 Cash dividends declared — ( 28,843 ) — — ( 28,843 ) 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 Common shares issued under compensation plan for Boards of Directors 39 — — 208 247 Common shares issued under employee stock purchase plan 84 — — 457 541 Stock-based compensation 3,888 — — — 3,888 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 9 Table of Contents PEOPLES BANCORP INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) Six Months Ended June 30, (Dollars in thousands) 2026 2025 Net cash provided by operating activities $ 90,571 $ 84,984 Investing activities: Available-for-sale investment securities: Purchases ( 74,887 ) — Proceeds from sales 129,807 967 Proceeds from principal payments, calls and prepayments 47,688 57,813 Held-to-maturity investment securities: Purchases ( 48,918 ) ( 180,880 ) Proceeds from principal payments 105,809 56,165 Other investments: Purchases ( 27,818 ) ( 23,211 ) Proceeds from sales 20,771 16,060 Net increase in loans held for investment ( 74,638 ) ( 252,796 ) Net expenditures for premises and equipment ( 2,082 ) ( 4,216 ) Proceeds from sales of other real estate owned — 187 Other ( 18 ) ( 1,053 ) Net cash provided by (used in) investing activities 75,714 ( 330,964 ) Financing activities: Net increase in non-interest-bearing deposits 48,371 23,163 Net (decrease) increase in interest-bearing deposits ( 202,366 ) 23,453 Net increase (decrease) in short-term borrowings 28,368 203,386 Proceeds from long-term borrowings 11,571 5,989 Payments on long-term borrowings ( 29,994 ) ( 12,177 ) Cash dividends paid ( 29,754 ) ( 28,843 ) Purchase of treasury stock under share repurchase program — ( 455 ) Purchase of treasury stock in connection with employee incentive program and compensation plan for Boards of Directors to be held as treasury stock ( 2,244 ) ( 2,123 ) Proceeds from issuance of common shares 796 991 Other ( 259 ) 1,007 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 Cash and cash equivalents at end of period $ 179,725 $ 186,075 Supplemental cash flow information: Interest paid $ 73,844 $ 75,709 Federal income taxes paid 1,500 8,500 State income taxes paid 1,686 650 Supplemental noncash disclosures: Transfers from total loans to other real estate owned 18 72 Noncash recognition of new leases 153 481 See Notes to the Unaudited Condensed Consolidated Financial Statements 10 Table of Contents PEOPLES BANCORP INC. AND SUBSIDIARIES NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS Note 1 Summary of Significant Accounting Policies Basis of Presentation: The accompanying Unaudited Condensed Consolidated Financial Statements of Peoples Bancorp Inc. and its subsidiaries ("Peoples" refers to Peoples Bancorp Inc. and its consolidated subsidiaries collectively, except where the context indicates the reference relates solely to Peoples Bancorp Inc.) have been prepared in accordance with accounting principles generally accepted in the United States ("US GAAP") for interim financial information and the instructions for Form 10-Q and Article 10 of Regulation S-X. Accordingly, these financial statements do not contain all of the information and footnotes required by US GAAP for annual financial statements and should be read in conjunction with Peoples’ Annual Report on Form 10-K for the fiscal year ended December 31, 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 June 30, 2026 (this "Form 10-Q"). 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. Such adjustments are normal and recurring in nature. Certain items in prior financial statements have been reclassified to conform to the current presentation, which had no impact on net income, total comprehensive income, net cash provided by operating, financing, or investing activities or total stockholders’ equity. The impact of such changes are not considered material to Peoples' financial statements. Intercompany accounts and transactions have been eliminated. The Consolidated Balance Sheet at December 31, 2025, contained herein, has been derived from the audited Consolidated Balance Sheet included in Peoples’ 2025 Form 10-K. The preparation of the condensed consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Results of operations for interim periods are not necessarily indicative of the results to be expected for the full year, due in part to seasonal variations and unusual or infrequently occurring items. Operating Segments: As a community banking entity, Peoples offers its customers a full range of products including a complete line of banking, leasing, insurance, investment and trust solutions. Peoples’ business activities are currently confined to a single reportable operating segment, which is community banking. Peoples’ single operating segment was determined based on the similar economic characteristics shared by the components of community banking. Peoples’ chief operating decision maker (“CODM”) is composed of its President and Chief Executive Officer, and its Chief Financial Officer. Peoples’ CODM considers all components of consolidated interest income, interest expense, non-interest income, and non-interest expense as presented in Peoples’ Consolidated Statements of Operations for the purposes of assessing performance of Peoples’ single reportable segment and allocating resources within its reportable segment. The CODM does not review segment revenue or expense information at a lower level than what is included in Peoples’ Consolidated Statements of Operations. New Accounting Pronouncements: From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board ("FASB") or other standard setting bodies that are adopted by Peoples as of the required effective dates. Refer to "Note 1 Summary of Significant Accounting Policies" of the Notes to the Consolidated Financial Statements included in Peoples’ 2025 Form 10-K for the impact of recently adopted standards impacting Peoples. Unless otherwise discussed, management believes 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 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 ASU 2025-12 as of January 1, 2026. Overall, the guidance did not have a material impact on Peoples' financial statements. However, ASU 2025-12 Issue #5 clarified that lease receivables from sales-type or direct financing leases are excluded from the enhanced disclosures required by ASU 2022-02, Troubled Debt Restructurings and Vintage Disclosures. As such, lease receivables from sales-type or direct financing leases are excluded from the current and prior period disclosures related to modifications for borrowers experiencing financial difficulty. Note 2 Fair Value of Assets and Liabilities Fair value represents the amount expected to be received to sell an asset or paid to transfer a liability in its principal or most advantageous market in an orderly transaction between market participants at the measurement date. In accordance with fair value accounting guidance, Peoples measures, records and reports various types of assets and liabilities at fair value on either a recurring or 11 Table of Contents a non-recurring basis in the Unaudited Condensed Consolidated Financial Statements. Those assets and liabilities are presented below in the sections entitled “Assets and Liabilities Required to be Measured and Reported at Fair Value on a Recurring Basis” and “Assets and Liabilities Required to be Measured and Reported at Fair Value on a Non-Recurring Basis.” Depending on the nature of the asset or the liability, Peoples uses various valuation methodologies and assumptions to estimate fair value. The measurement of fair value under US GAAP uses a hierarchy, which is described in "Note 1 Summary of Significant Accounting Policies" of the Notes to the Consolidated Financial Statements included in Peoples' 2025 Form 10-K. Assets and liabilities are assigned to a level within the fair value hierarchy based on the lowest level of significant input used to measure fair value. Assets and liabilities may change levels within the fair value hierarchy due to market conditions or other circumstances. Those transfers are recognized on the date of the event that prompted the transfer. There were no transfers of assets or liabilities required to be measured at fair value on a recurring basis between levels of the fair value hierarchy during the periods presented. Assets and Liabilities Required to be Measured and Reported at Fair Value on a Recurring Basis The following table provides the fair value for assets and liabilities required to be measured and reported at fair value on a recurring basis on the Unaudited Consolidated Balance Sheets by level in the fair value hierarchy. Recurring Fair Value Measurements at Reporting Date June 30, 2026 December 31, 2025 (Dollars in thousands) Level 1 Level 2 Level 1 Level 2 Assets: Available-for-sale investment securities: Obligations of: U.S. Treasury and government agencies $ 14,629 $ — $ — $ 17,580 U.S. government sponsored agencies — 215,080 — 206,330 States and political subdivisions — 108,141 — 170,832 Residential mortgage-backed securities — 480,730 — 544,038 Commercial mortgage-backed securities — 52,626 — 41,804 Bank-issued trust preferred securities — 2,844 — 3,783 Total available-for-sale securities $ 14,629 $ 859,421 $ — $ 984,367 Equity investment securities (a) 199 258 176 239 Nonqualified deferred compensation (a) (b) 6,466 — 6,074 — Derivative assets (c) — 10,312 — 9,708 Liabilities: Derivative liabilities (d) $ — $ 9,876 $ — $ 9,275 (a) Included in "Other investments" on the Unaudited Consolidated Balance Sheets. For additional information, see "Note 3 Investment Securities" of the Notes to the Unaudited Condensed Consolidated Financial Statements. (b) Investments in the nonqualified deferred compensation plan consist of mutual funds. (c) Included in " Other assets " on the Unaudited Consolidated Balance Sheets. For additional information, see "Note 10 Derivative Financial Instruments" of the Notes to the Unaudited Condensed Consolidated Financial Statements. (d) Included in " Accrued expenses and other liabilities " on the Unaudited Consolidated Balance Sheets. For additional information, see "Note 10 Derivative Financial Instruments" of the Notes to the Unaudited Condensed Consolidated Financial Statements. Available-for-Sale Investment Securities: The fair values used by Peoples are obtained from an independent pricing service and represent either quoted market prices for the identical securities (Level 1) or fair values determined by pricing models using a market approach that considers observable market data, such as interest rate volatility, secured overnight funding rate ("SOFR") or other relevant yield curves, credit spreads, and prices from market makers and live trading systems (Level 2). Management reviews the valuation methodology and quality controls utilized by the pricing services or broker in management's overall assessment of the reasonableness of the fair values provided, and challenges prices when management believes a material discrepancy in pricing exists. Equity Investment Securities: The fair values of Peoples' equity investment securities are obtained from q uoted prices in active exchange markets for identical assets or liabilities (Level 1) or quoted prices in less active markets (Level 2). Nonqualified deferred compensation: The underlying assets relating to the nonqualified deferred compensation plan are included in a trust and primarily consist of cash and exchange traded mutual funds, which values are based on market prices (Level 1). 12 Table of Contents Derivative Assets and Derivative Liabilities : The fair values for derivative financial instruments are determined based on third-party models, which leverage current market interest rates, broker-dealer quotations on similar products, or other related input parameters (Level 2). Assets and Liabilities Required to be Measured and Reported at Fair Value on a Non-Recurring Basis The following table provides the fair value for each class of assets and liabilities required to be measured and reported at fair value on a non-recurring basis on the Unaudited Consolidated Balance Sheets by level in the fair value hierarchy at June 30, 2026 and December 31, 2025. Non-Recurring Fair Value Measurements at Reporting Date June 30, 2026 December 31, 2025 (Dollars in thousands) Level 2 Level 3 Level 2 Level 3 Assets: Collateral dependent loans $ — $ 30,739 $ — $ 7,738 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 June 30, 2026 and at December 31, 2025, respectively. Collateral Dependent Loans: Loans for which repayment is dependent upon the operation or sale of collateral, as the borrower is experiencing financial difficulty, are considered collateral dependent. Peoples utilizes outside third-party appraisal services to value the underlying collateral, which Peoples then uses to report the loans at their fair value (Level 3). Loans Held for Sale: Loans originated and intended to be sold in the secondary market, generally one-to-four family residential loans, are carried, in aggregate, at the lower of cost or estimated fair value. Peoples uses a valuation model using quoted market prices of similar instruments in arriving at the fair value (Level 2). 13 Table of Contents Financial Instruments Not Required to be Measured or Reported at Fair Value The following table provides the carrying amount for each class of assets and liabilities and the fair value for certain financial instruments that are not required to be measured or reported at fair value on the Unaudited Consolidated Balance Sheets. Fair Value Measurements of Other Financial Instruments (Dollars in thousands) Fair Value Hierarchy Level June 30, 2026 December 31, 2025 Carrying Amount Fair Value Carrying Amount Fair Value Assets: Cash and cash equivalents 1 $ 179,725 179,725 $ 188,951 $ 188,951 Held-to-maturity investment securities: Obligations of: U.S. government sponsored agencies 2 247,324 237,266 261,826 254,435 States and political subdivisions (a) 2 138,622 113,423 140,843 115,657 Residential mortgage-backed securities 2 383,691 367,532 423,628 413,123 Commercial mortgage-backed securities 2 97,928 84,495 96,776 84,499 Total held-to-maturity securities 867,565 802,716 923,073 867,714 Other investments: Other investments at cost: Federal Home Loan Bank ("FHLB") stock 3 37,445 37,445 30,843 30,843 Federal Reserve Bank ("FRB") stock 3 27,114 27,114 27,114 27,114 Other investments (b) 3 4,617 4,617 4,210 4,210 Total other investments at cost 69,176 69,176 62,167 62,167 Loans and leases, net of deferred fees and costs (c) 3 6,821,580 6,577,344 6,756,907 6,697,321 Bank owned life insurance 2 150,615 150,615 148,264 148,264 Liabilities: Deposits 2 $ 7,456,365 $ 6,276,730 $ 7,610,224 $ 6,579,413 Short-term borrowings 2 588,653 588,731 530,285 530,282 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 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 $ 78.1 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. These financial instruments include cash and cash equivalents and overnight borrowings. Peoples used the following methods and assumptions in estimating the fair value of the following financial instruments: Cash and Cash Equivalents: Cash and cash equivalents include cash on hand, balances due from other banks, interest-bearing deposits in other banks, federal funds sold and other short-term investments with original maturities of 90 days or less. The carrying amount for cash and cash equivalents balances are a reasonable estimate of fair value (Level 1). Held-to-Maturity Investment Securities: The fair values used by Peoples are obtained from an independent pricing service and represent fair values determined by pricing models using a market approach that considers observable market data, such as interest rate volatility, relevant yield curves, credit spreads and prices from market makers and live trading systems (Level 2). Management reviews the valuation methodology and quality controls utilized by the pricing services in management's overall assessment of the reasonableness of the fair values provided, and challenges prices when management believes a material discrepancy in pricing exists. Other Investments: FHLB and FRB stock are both recorded at historical cost. Other investments are otherwise primarily comprised of investments accounted for under the cost method due to the level of control Peoples exercises over the investee. These investments are not actively traded in an open market as sales for these types of investments are rare (Level 3). 14 Table of Contents Loans and Leases, Net of Deferred Fees and Costs: The fair value of portfolio loans and leases assumes sale of the underlying notes to a third-party financial investor. Accordingly, this value is not necessarily the value to Peoples if the notes were held to maturity. Peoples considers interest rate, credit and market factors in estimating the fair value of loans and leases (Level 3). Fair values for loans and leases are estimated using a discounted cash flow methodology. The discount rates take into account interest rates currently being offered to customers for loans and leases with similar terms, the credit risk associated with the loans and leases and other market factors, including liquidity. Bank Owned Life Insurance: Peoples' bank owned life insurance ("BOLI") policies are recorded at their cash surrender value, which approximates fair value (Level 2). Peoples recognizes tax-exempt income from the periodic increases in the cash surrender value of these policies and from death benefits. Deposits: The fair value of fixed-maturity certificates of deposit ("CDs") is estimated using a discounted cash flow calculation based on current rates offered for deposits of similar remaining maturities. Demand and other non-fixed-maturity deposits are estimated using a discounted cash flow calculation based on maturity, attrition and re-pricing assumptions (Level 2). Short-term Borrowings: The fair value of short-term borrowings is estimated using a discounted cash flow analysis based on rates currently available to Peoples for borrowings with similar terms (Level 2). Long-term Borrowings: The fair value of long-term borrowings is estimated using a discounted cash flow analysis based on rates currently available to Peoples for borrowings with similar terms (Level 2). Note 3 Investment Securities Available-for-sale The following table summarizes Peoples' available-for-sale investment securities: (Dollars in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value June 30, 2026 Obligations of: U.S. Treasury and government agencies $ 14,724 $ — $ ( 95 ) $ 14,629 U.S. government sponsored agencies 223,008 297 ( 8,225 ) 215,080 States and political subdivisions 122,317 37 ( 14,213 ) 108,141 Residential mortgage-backed securities 544,634 1,194 ( 65,098 ) 480,730 Commercial mortgage-backed securities 58,909 — ( 6,283 ) 52,626 Bank-issued trust preferred securities 3,000 — ( 156 ) 2,844 Total available-for-sale securities $ 966,592 $ 1,528 $ ( 94,070 ) $ 874,050 December 31, 2025 Obligations of: U.S. Treasury and government agencies $ 17,386 $ 213 $ ( 19 ) $ 17,580 U.S. government sponsored agencies 212,282 504 ( 6,456 ) 206,330 States and political subdivisions 189,131 103 ( 18,402 ) 170,832 Residential mortgage-backed securities 606,292 1,749 ( 64,003 ) 544,038 Commercial mortgage-backed securities 47,889 1 ( 6,086 ) 41,804 Bank-issued trust preferred securities 4,000 — ( 217 ) 3,783 Total available-for-sale securities $ 1,076,980 $ 2,570 $ ( 95,183 ) $ 984,367 15 Table of Contents The gross gains and losses realized by Peoples from sales or prepayments of available-for-sale investment securities for the periods ended June 30 were as follows: Three Months Ended Six Months Ended June 30, June 30, (Dollars in thousands) 2026 2025 2026 2025 Gross gains realized $ 83 $ — $ 204 $ 25 Gross losses realized ( 8,264 ) — ( 8,385 ) ( 27 ) Net loss realized $ ( 8,181 ) $ — $ ( 8,181 ) $ ( 2 ) The cost of investment securities sold, and any resulting gain or loss, were based on the specific identification method and recognized as of the trade date. The following table presents a summary of available-for-sale investment securities that have been in a continuous unrealized loss position for the periods identified: Less than 12 Months 12 Months or More Total (Dollars in thousands) Fair Value Unrealized Loss No. of Securities Fair Value Unrealized Loss No. of Securities Fair Value Unrealized Loss June 30, 2026 Obligations of: U.S. Treasury and government agencies $ 14,629 $ 95 2 $ — $ — — $ 14,629 $ 95 U.S. government sponsored agencies 130,342 2,179 25 70,893 6,046 18 201,235 8,225 States and political subdivisions 21,129 769 40 82,802 13,444 61 103,931 14,213 Residential mortgage-backed securities 36,618 482 51 402,272 64,616 198 438,890 65,098 Commercial mortgage-backed securities 20,970 481 6 31,656 5,802 17 52,626 6,283 Bank-issued trust preferred securities — — — 2,844 156 1 2,844 156 Total $ 223,688 $ 4,006 124 $ 590,467 $ 90,064 295 $ 814,155 $ 94,070 December 31, 2025 Obligations of: U.S. Treasury and government agencies $ 5,319 $ 16 3 $ 741 $ 3 4 $ 6,060 $ 19 U.S. government sponsored agencies 47,059 341 10 127,311 6,115 27 174,370 6,456 States and political subdivisions 3,129 460 5 158,898 17,942 134 162,027 18,402 Residential mortgage-backed securities 13,310 62 10 461,661 63,941 235 474,971 64,003 Commercial mortgage-backed securities 2,292 9 2 39,000 6,077 21 41,292 6,086 Bank-issued trust preferred securities — — — 3,783 217 2 3,783 217 Total $ 71,109 $ 888 30 $ 791,394 $ 94,295 423 $ 862,503 $ 95,183 Management evaluates available-for-sale investment securities for an allowance for credit losses on a quarterly basis. At 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. 16 Table of Contents 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. (Dollars in thousands) Within 1 Year 1 to 5 Years 5 to 10 Years Over 10 Years Total Amortized cost Obligations of: U.S. Treasury and government agencies $ — $ 4,955 $ 9,769 $ — $ 14,724 U.S. government sponsored agencies — 42,411 119,479 61,118 223,008 States and political subdivisions 2,412 10,721 55,026 54,158 122,317 Residential mortgage-backed securities — 1,449 47,535 495,650 544,634 Commercial mortgage-backed securities — 10,893 15,286 32,730 58,909 Bank-issued trust preferred securities — — 3,000 — 3,000 Total available-for-sale securities $ 2,412 $ 70,429 $ 250,095 $ 643,656 $ 966,592 Fair value Obligations of: U.S. Treasury and government agencies $ — $ 4,929 $ 9,700 $ — $ 14,629 U.S. government sponsored agencies — 39,029 115,710 60,341 215,080 States and political subdivisions 2,403 10,428 47,808 47,502 108,141 Residential mortgage-backed securities — 1,394 43,987 435,349 480,730 Commercial mortgage-backed securities — 9,737 13,376 29,513 52,626 Bank-issued trust preferred securities — — 2,844 — 2,844 Total available-for-sale securities $ 2,403 $ 65,517 $ 233,425 $ 572,705 $ 874,050 Total weighted-average yield 3.33 % 1.96 % 3.31 % 2.84 % 2.90 % Held-to-maturity The following table summarizes Peoples’ held-to-maturity investment securities: (Dollars in thousands) Amortized Cost Allowance for Credit Losses Gross Unrealized Gains Gross Unrealized Losses Fair Value June 30, 2026 Obligations of: U.S. government sponsored agencies $ 247,324 $ — $ 618 $ ( 10,676 ) $ 237,266 States and political subdivisions 138,622 ( 233 ) 47 ( 25,013 ) 113,423 Residential mortgage-backed securities 383,691 — 2,167 ( 18,326 ) 367,532 Commercial mortgage-backed securities 97,928 — — ( 13,433 ) 84,495 Total held-to-maturity investment securities $ 867,565 $ ( 233 ) $ 2,832 $ ( 67,448 ) $ 802,716 December 31, 2025 Obligations of: U.S. government sponsored agencies $ 261,826 $ — $ 740 $ ( 8,131 ) $ 254,435 States and political subdivisions 140,843 ( 236 ) 77 ( 25,027 ) 115,657 Residential mortgage-backed securities 423,628 — 4,916 ( 15,421 ) 413,123 Commercial mortgage-backed securities 96,776 — — ( 12,277 ) 84,499 Total held-to-maturity investment securities $ 923,073 $ ( 236 ) $ 5,733 $ ( 60,856 ) $ 867,714 There were no sales of held-to-maturity investment securities during the 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 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: 17 Table of Contents Less than 12 Months 12 Months or More Total (Dollars in thousands) Fair Value Unrealized Loss No. of Securities Fair Value Unrealized Loss No. of Securities Fair Value Unrealized Loss June 30, 2026 Obligations of: U.S. government sponsored agencies $ 89,414 $ 1,981 20 $ 112,566 $ 8,695 21 $ 201,980 $ 10,676 States and political subdivisions 2,280 548 4 109,083 24,465 64 111,363 25,013 Residential mortgage-backed securities 124,335 1,932 26 128,141 16,394 41 252,476 18,326 Commercial mortgage-backed securities 16,031 1,389 7 68,464 12,044 29 84,495 13,433 Total $ 232,060 $ 5,850 57 $ 418,254 $ 61,598 155 $ 650,314 $ 67,448 December 31, 2025 Obligations of: U.S. government sponsored agencies $ 131,933 $ 1,447 16 $ 66,509 $ 6,684 20 $ 198,442 $ 8,131 States and political subdivisions 1,238 301 2 110,531 24,726 65 111,769 25,027 Residential mortgage-backed securities 34,814 261 6 143,068 15,160 45 177,882 15,421 Commercial mortgage-backed securities 7,776 111 3 73,975 12,166 30 81,751 12,277 Total $ 175,761 $ 2,120 27 $ 394,083 $ 58,736 160 $ 569,844 $ 60,856 The table below presents the amortized cost, fair value and total weighted-average yield of held-to-maturity investment securities by contractual maturity at 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. (Dollars in thousands) Within 1 Year 1 to 5 Years 5 to 10 Years Over 10 Years Total Amortized cost Obligations of: U.S. government sponsored agencies $ 3,500 $ 2,199 $ 140,987 $ 100,638 $ 247,324 States and political subdivisions 2,443 4,585 33,446 98,148 138,622 Residential mortgage-backed securities — — 6,717 376,974 383,691 Commercial mortgage-backed securities 969 7,687 41,910 47,362 97,928 Total held-to-maturity investment securities $ 6,912 $ 14,471 $ 223,060 $ 623,122 $ 867,565 Fair value Obligations of: U.S. government sponsored agencies $ 3,455 $ 2,022 $ 133,638 $ 98,151 $ 237,266 States and political subdivisions 2,485 4,267 28,674 77,997 113,423 Residential mortgage-backed securities — — 6,323 361,209 367,532 Commercial mortgage-backed securities 962 7,188 36,714 39,631 84,495 Total held-to-maturity investment securities $ 6,902 $ 13,477 $ 205,349 $ 576,988 $ 802,716 Total weighted-average yield 1.86 % 1.97 % 3.41 % 4.15 % 3.90 % 18 Table of Contents Other Investments Peoples' other investments on the Unaudited Consolidated Balance Sheets consist largely of shares of FHLB stock and of FRB stock. The following table summarizes the carrying value of Peoples' other investments: (Dollars in thousands) June 30, 2026 December 31, 2025 FHLB stock $ 37,445 $ 30,843 FRB stock 27,114 27,114 Nonqualified deferred compensation 6,466 6,074 Equity investment securities 4,205 3,756 Other investments 869 869 Total other investments $ 76,099 $ 68,656 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 Peoples has pledged available-for-sale investment securities and held-to-maturity investment securities to secure public and trust department deposits, and repurchase agreements in accordance with federal and state requirements. Peoples has also pledged available-for-sale investment securities to secure additional borrowing capacity at the FHLB and the FRB. The following table summarizes the carrying amount of Peoples' pledged securities: Carrying Amount (Dollars in thousands) June 30, 2026 December 31, 2025 Securing public and trust department deposits, and repurchase agreements: Available-for-sale $ 347,080 $ 328,516 Held-to-maturity 766,540 704,470 Securing additional borrowing capacity at the FHLB and the FRB: Available-for-sale 88,892 4,018 Held-to-maturity 41,268 68,425 Accrued Interest Accrued interest receivable is not included in investment securities balances, and is presented in the “Other assets” line of the Unaudited Consolidated Balance Sheets, with no recorded allowance for credit losses. Interest receivable on investment securities was $ 8.7 million at June 30, 2026 and $ 9.0 million at December 31, 2025. Note 4 Loans and Leases Peoples' loan portfolio consists of various types of loans and leases originated primarily as a result of lending opportunities within Peoples' footprint. Peoples also originates insurance premium finance loans nationwide through its Peoples Premium Finance division, and originates leases nationwide through its North Star Leasing ("NSL") division and its Vantage Financial, LLC ("Vantage") subsidiary. 19 Table of Contents The major classifications of loan balances (in each case, net of deferred fees and costs) excluding loans held for sale, were as follows: (Dollars in thousands) June 30, 2026 December 31, 2025 Construction $ 294,350 $ 300,941 Commercial real estate, other 2,283,163 2,363,967 Commercial and industrial 1,689,817 1,535,755 Premium finance 266,015 253,075 Leases 353,952 365,649 Residential real estate 846,475 861,722 Home equity lines of credit 273,965 253,864 Consumer, indirect 693,529 700,582 Consumer, direct 119,273 120,338 Deposit account overdrafts 1,041 1,014 Total loans, at amortized cost $ 6,821,580 $ 6,756,907 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 $ 22.2 million at June 30, 2026 and $ 25.0 million at December 31, 2025. Nonaccrual and Past Due Loans A loan is considered past due if any required principal and interest payments have not been received as of the date such payments were required to be made under the terms of the loan agreement. A loan may be placed on nonaccrual status regardless of whether or not such loan is considered past due. The amortized cost of loans on nonaccrual status and of loans delinquent for 90 days or more and accruing was as follows: June 30, 2026 December 31, 2025 (Dollars in thousands) Nonaccrual (a) Accruing Loans 90+ Days Past Due Nonaccrual (a) Accruing Loans 90+ Days Past Due Construction $ 293 $ — $ — $ — Commercial real estate, other 6,802 3,874 4,056 579 Commercial and industrial 4,546 85 8,045 126 Premium finance — 1,793 573 2,477 Leases 8,145 — 11,063 542 Residential real estate 8,978 1,655 8,556 1,937 Home equity lines of credit 1,550 193 1,507 69 Consumer, indirect 2,594 93 2,718 286 Consumer, direct 193 145 368 140 Total loans, at amortized cost $ 33,101 $ 7,838 $ 36,886 $ 6,156 (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. 20 Table of Contents 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: Loans Past Due Current Loans Total Loans (Dollars in thousands) 30 - 59 days 60 - 89 days 90 + Days Total June 30, 2026 Construction $ 293 $ — $ — $ 293 $ 294,057 $ 294,350 Commercial real estate, other 1,141 1,816 9,806 12,763 2,270,400 2,283,163 Commercial and industrial 1,787 430 4,523 6,740 1,683,077 1,689,817 Premium finance 1,165 544 1,793 3,502 262,513 266,015 Leases 1,627 4,138 7,380 13,145 340,807 353,952 Residential real estate 2,834 4,151 4,788 11,773 834,702 846,475 Home equity lines of credit 1,235 527 1,125 2,887 271,078 273,965 Consumer, indirect 6,261 1,626 1,379 9,266 684,263 693,529 Consumer, direct 750 121 200 1,071 118,202 119,273 Deposit account overdrafts — — — — 1,041 1,041 Total loans, at amortized cost $ 17,093 $ 13,353 $ 30,994 $ 61,440 $ 6,760,140 $ 6,821,580 December 31, 2025 Construction $ — $ — $ — $ — $ 300,941 $ 300,941 Commercial real estate, other 1,760 4,066 3,664 9,490 2,354,477 2,363,967 Commercial and industrial 1,600 1,329 7,780 10,709 1,525,046 1,535,755 Premium finance 2,767 2,956 3,050 8,773 244,302 253,075 Leases 9,966 3,560 11,187 24,713 340,936 365,649 Residential real estate 13,821 3,035 5,767 22,623 839,099 861,722 Home equity lines of credit 2,160 402 981 3,543 250,321 253,864 Consumer, indirect 8,752 1,726 1,550 12,028 688,554 700,582 Consumer, direct 752 165 431 1,348 118,990 120,338 Deposit account overdrafts — — — — 1,014 1,014 Total loans, at amortized cost $ 41,578 $ 17,239 $ 34,410 $ 93,227 $ 6,663,680 $ 6,756,907 Delinquency trends improved 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 Peoples has pledged certain loans secured by one-to-four family and multifamily residential mortgages, home equity lines of credit and commercial real estate loans under a blanket collateral agreement to secure borrowings from the FHLB. Peoples also has pledged eligible commercial and industrial loans to secure borrowings with the FRB. Loans pledged are summarized as follows: (Dollars in thousands) June 30, 2026 December 31, 2025 Loans pledged to FHLB $ 1,271,534 $ 1,347,242 Loans pledged to FRB 691,432 624,503 Credit Quality Indicators As discussed in "Note 1 Summary of Significant Accounting Policies" of the Notes to the Consolidated Financial Statements included in Peoples' 2025 Form 10-K, Peoples categorizes the majority of its loans into risk categories based upon an established risk grading matrix using a scale of 1 to 8. Loan grades are assigned at the time a new loan or lending commitment is extended by Peoples and may be changed at any time when circumstances warrant. Commercial loans to borrowers with an aggregate unpaid principal balance in excess of $ 1.0 million are reviewed at least on an annual basis for possible credit deterioration. Commercial leases, as well as loan relationships whose aggregate credit exposure to Peoples is equal to or less than $ 1.0 million, are reviewed on an event driven basis. Triggers for review include knowledge of adverse events affecting the borrower's business, receipt of financial statements indicating deteriorating credit quality or other similar events. Adversely classified loans are reviewed on a quarterly basis. A description of the general characteristics of the risk grades used by Peoples, follows: 21 Table of Contents “Pass” (grades 1 through 4): Loans in this risk category involve borrowers of acceptable-to-strong credit quality and risk who have the apparent ability to satisfy their loan obligations. Loans in this risk category would possess sufficient mitigating factors, such as adequate collateral or strong guarantors possessing the capacity to repay the loan if required, for any weakness that may exist. “Special Mention” (grade 5): Loans in this risk grade are the equivalent of the regulatory definition of “Other Assets Especially Mentioned.” Loans in this risk category possess some credit deficiency or potential weakness, which requires a high level of management attention. Potential weaknesses include declining trends in operating earnings and cash flows and/or reliance on a secondary source of repayment. If left uncorrected, these potential weaknesses may result in noticeable deterioration of the repayment prospects for the loan or in Peoples' credit position. “Substandard” (grade 6): Loans in this risk grade are inadequately protected by the borrower's current financial condition and payment capability or the collateral pledged, if any. Loans so classified have one or more well-defined weaknesses that jeopardize the orderly repayment of the loans. They are characterized by the distinct possibility that Peoples will sustain some loss if the weaknesses are not corrected. “Doubtful” (grade 7): Loans in this risk grade have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or orderly repayment in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable. Possibility of loss is extremely high, but because of certain important and reasonably specific factors that may work to the advantage and strengthening of the exposure, classification of each of these loans as an estimated loss is deferred until its more exact status may be determined. “Loss” (grade 8): Loans in this risk grade are considered to be non-collectible and of such little value that their continuance as bankable assets is not warranted. This does not mean a loan has absolutely no recovery value, but rather it is neither practical nor desirable to defer writing off the loan, even though partial recovery may be obtained in the future. Charge-offs against the allowance for credit losses are taken during the period in which the loan becomes uncollectible. Consequently, Peoples typically does not maintain a recorded investment in loans within this category. Consumer loans and other smaller-balance loans are evaluated and categorized as "substandard," "doubtful" or "loss" based upon the regulatory definition of these classes and consistent with regulatory requirements. Leases are categorized as "special mention", "substandard", "doubtful", or "loss" based upon delinquency status and the prospect of collecting the remaining net investment balance owed under the lease. All other loans not evaluated individually, nor meeting the regulatory conditions to be categorized as described above, would be considered as being "not rated." The following table summarizes the risk category of loans within Peoples' loan portfolio, including acquired loans, based upon the most recent analysis performed at June 30, 2026: Term Loans at Amortized Cost by Origination Year Revolving Loans Converted to Term (Dollars in thousands) 2026 2025 2024 2023 2022 Prior Revolving Loans Total Loans Construction Pass $ 24,141 $ 98,544 $ 94,125 $ 47,697 $ 940 $ 14,808 $ — $ — $ 280,255 Substandard — — 11,260 1,088 1,454 293 — — 14,095 Total 24,141 98,544 105,385 48,785 2,394 15,101 — — 294,350 Current period gross charge-offs (a) — — — — — — — Commercial real estate, other Pass 106,340 347,491 168,667 284,484 323,049 865,560 40,884 — 2,136,475 Special mention — 1,018 32,296 33,515 1,584 8,480 — — 76,893 Substandard 6,181 — 7,705 1,477 4,453 49,859 120 — 69,795 Total 112,521 348,509 208,668 319,476 329,086 923,899 41,004 — 2,283,163 Current period gross charge-offs (a) — — — — — 167 167 Commercial and industrial Pass 280,400 327,484 194,878 102,217 64,396 359,988 271,313 2,461 1,600,676 Special mention 238 4,619 16,728 23 610 588 31,374 — 54,180 Substandard 688 1,135 3,199 218 7,633 13,930 8,134 740 34,937 Doubtful — — — — — 24 — — 24 22 Table of Contents Term Loans at Amortized Cost by Origination Year Revolving Loans Converted to Term (Dollars in thousands) 2026 2025 2024 2023 2022 Prior Revolving Loans Total Loans Total 281,326 333,238 214,805 102,458 72,639 374,530 310,821 3,201 1,689,817 Current period gross charge-offs (a) 171 — 64 104 22 126 487 Premium Finance Pass 215,165 50,332 517 1 — — — — 266,015 Total 215,165 50,332 517 1 — — — — 266,015 Current period gross charge-offs (a) — 44 71 2 — — 117 Leases Pass 83,473 111,837 75,718 53,292 15,793 4,550 — — 344,663 Special mention 79 391 657 333 205 183 — — 1,848 Substandard 55 364 1,118 1,075 401 82 — — 3,095 Doubtful — 133 578 2,515 915 205 — — 4,346 Total 83,607 112,725 78,071 57,215 17,314 5,020 — — 353,952 Current period gross charge-offs (a) — 685 2,171 4,679 895 602 9,032 Residential real estate Pass 38,655 100,419 62,165 52,149 74,059 509,033 — — 836,480 Substandard — 455 458 1,079 574 7,255 — — 9,821 Loss — 12 8 — 60 94 — — 174 Total 38,655 100,886 62,631 53,228 74,693 516,382 — — 846,475 Current period gross charge-offs (a) — 4 39 — 76 115 234 Home equity lines of credit Pass 3,928 57,885 48,051 29,313 31,465 70,293 31,706 955 272,641 Substandard — 17 — 275 460 562 — — 1,314 Loss — — — — — 10 — — 10 Total 3,928 57,902 48,051 29,588 31,925 70,865 31,706 955 273,965 Current period gross charge-offs (a) — — — — — 64 64 Consumer, indirect Pass 141,152 247,347 130,420 82,802 60,739 28,098 — — 690,558 Substandard — 857 666 448 494 465 — — 2,930 Loss — 3 5 6 3 24 — — 41 Total 141,152 248,207 131,091 83,256 61,236 28,587 — — 693,529 Current period gross charge-offs (a) 63 1,604 835 509 250 105 3,366 Consumer, direct Pass 36,721 38,884 18,101 10,921 8,341 6,059 — — 119,027 23 Table of Contents Term Loans at Amortized Cost by Origination Year Revolving Loans Converted to Term (Dollars in thousands) 2026 2025 2024 2023 2022 Prior Revolving Loans Total Loans Substandard — 35 25 76 60 — — — 196 Loss — — — — 10 40 — — 50 Total 36,721 38,919 18,126 10,997 8,411 6,099 — — 119,273 Current period gross charge-offs (a) 182 131 33 33 21 9 409 Deposit account overdrafts 1,041 — — — — — — — 1,041 Current period gross charge-offs (a) 649 — — — — — 649 Total loans, at amortized cost 938,257 1,389,262 867,345 705,004 597,698 1,940,483 383,531 4,156 6,821,580 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 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: Term Loans at Amortized Cost by Origination Year (Dollars in thousands) 2025 2024 2023 2022 2021 Prior Revolving Loans Revolving Loans Converted to Term Total Loans Construction Pass $ 81,441 $ 98,488 $ 99,069 $ 918 $ 6,618 $ 8,720 $ — $ 512 $ 295,254 Substandard — 3,092 1,113 1,482 — — — — 5,687 Total 81,441 101,580 100,182 2,400 6,618 8,720 — 512 300,941 Current period gross charge-offs (a) — — — — — — — Commercial real estate, other Pass 330,087 164,537 345,618 378,500 310,160 670,053 44,947 1,794 2,243,902 Special mention 83 22,415 2,580 1,696 4,460 13,067 133 — 44,434 Substandard — 8,042 1,188 15,727 17,170 32,945 549 87 75,621 Doubtful — — — — — 10 — — 10 Total 330,170 194,994 349,386 395,923 331,790 716,075 45,629 1,881 2,363,967 Current period gross charge-offs (a) — — — 174 — 121 295 Commercial and industrial Pass 381,903 230,861 115,712 95,158 92,556 290,243 248,204 7,621 1,454,637 Special mention 45 3,117 2,653 847 981 4,885 30,001 2,292 42,529 Substandard 130 251 263 8,745 12,196 6,407 10,562 5,423 38,554 Doubtful — — — — — 35 — — 35 Total 382,078 234,229 118,628 104,750 105,733 301,570 288,767 15,336 1,535,755 Current period gross charge-offs (a) — 19 161 202 202 1,167 1,751 Premium finance Pass 248,710 3,649 143 — — — — — 252,502 Substandard — 520 53 — — — — — 573 Total 248,710 4,169 196 — — — — — 253,075 24 Table of Contents Term Loans at Amortized Cost by Origination Year (Dollars in thousands) 2025 2024 2023 2022 2021 Prior Revolving Loans Revolving Loans Converted to Term Total Loans Current period gross charge-offs (a) 31 192 229 30 — — 482 Leases Pass 145,052 94,499 72,336 27,742 9,768 3,161 — — 352,558 Special mention 480 739 774 402 21 — — — 2,416 Substandard 228 1,001 3,386 785 334 — — — 5,734 Doubtful 48 1,406 2,249 864 374 — — — 4,941 Total 145,808 97,645 78,745 29,793 10,497 3,161 — — 365,649 Current period gross charge-offs (a) 204 4,240 8,297 6,717 1,450 496 21,404 Residential real estate Pass 104,910 66,847 56,842 77,533 117,758 426,547 — — 850,437 Substandard 183 501 1,540 663 924 7,378 — — 11,189 Loss — — — — — 96 — — 96 Total 105,093 67,348 58,382 78,196 118,682 434,021 — — 861,722 Current period gross charge-offs (a) — — 27 8 39 199 273 Home equity lines of credit Pass 54,398 51,042 32,052 34,382 24,293 56,416 21 3,560 252,604 Substandard — — 312 285 89 559 — — 1,245 Loss — — — 5 — 10 — — 15 Total 54,398 51,042 32,364 34,672 24,382 56,985 21 3,560 253,864 Current period gross charge-offs (a) — — 36 — — 5 41 Consumer, indirect Pass 292,512 164,565 108,928 84,987 27,026 19,049 — — 697,067 Substandard 655 648 708 667 412 305 — — 3,395 Loss 37 15 19 6 7 36 — — 120 Total 293,204 165,228 109,655 85,660 27,445 19,390 — — 700,582 Current period gross charge-offs (a) 1,128 2,030 1,948 1,121 350 147 6,724 Consumer, direct Pass 60,248 24,070 15,182 11,889 4,516 4,000 — — 119,905 Substandard 43 57 171 71 1 41 — — 384 Loss — 1 10 6 1 31 — — 49 Total 60,291 24,128 15,363 11,966 4,518 4,072 — — 120,338 Current period gross charge-offs (a) 344 143 98 75 19 23 702 Deposit account overdrafts 1,014 — — — — — — — 1,014 Current period gross charge-offs (a) 1,149 — — — — — 1,149 Total loans, at amortized cost 1,702,207 940,363 862,901 743,360 629,665 1,543,994 334,417 21,289 6,756,907 Current period gross charge-offs (a) $ 2,856 $ 6,624 $ 10,796 $ 8,327 $ 2,060 $ 2,158 $ 32,821 (a) Current period gross charge-offs are for the year ended as of December 31, 2025. 25 Table of Contents Collateral Dependent Loans Peoples has certain loans for which repayment is dependent upon the operation or sale of collateral, as the borrower is experiencing financial difficulty. The underlying collateral can vary based upon the type of loan. The following provides more detail about the types of collateral that secure collateral dependent loans: • Construction loans are typically secured by owner occupied commercial real estate or non-owner occupied investment real estate. Typically, owner occupied construction loans are secured by office buildings, warehouses, manufacturing facilities, and other commercial and industrial properties that are in process of construction. Non-owner occupied commercial construction loans are generally secured by multi-family complexes, warehouse buildings, industrial buildings, land under development, and other commercial real estate in process of construction. • Commercial real estate loans can be secured by either owner occupied commercial real estate or non-owner occupied investment commercial real estate. Typically, owner occupied commercial real estate loans are secured by office buildings, warehouses, manufacturing facilities, and other commercial and industrial properties occupied by operating companies. Non-owner occupied commercial real estate loans are generally secured by multifamily complexes, retail facilities, office buildings and complexes, warehouses, industrial buildings, land under development, as well as other commercial real estate. • Commercial and industrial loans are generally secured by equipment, inventory, accounts receivable, and other commercial property. • Residential real estate loans are typically secured by first mortgages, and in some cases could be secured by a second mortgage, on residential real estate property. • Home equity lines of credit are generally secured by second mortgages on residential real estate property. • Consumer loans are generally secured by automobiles, motorcycles, recreational vehicles and other personal property. Some consumer loans are unsecured and have no underlying collateral. • Leases are most often secured by commercial equipment and other essential business assets. • Premium finance loans are secured by the unearned portion of the insurance premium being financed. The following table details Peoples' amortized cost of collateral dependent loans: (Dollars in thousands) June 30, 2026 December 31, 2025 Construction $ 11,283 $ — Commercial real estate, other 16,773 687 Commercial and industrial 1,298 4,666 Leases 738 2,385 Residential real estate 647 — Total collateral dependent loans $ 30,739 $ 7,738 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 As part of Peoples' loss mitigation activities, Peoples may agree to modify the contractual terms of a loan to a borrower experiencing financial difficulty. The most common modifications to the contractual terms of a loan to a borrower experiencing financial difficulty include an extension of the maturity date and a temporary period of interest-only payments. In addition to loan modifications, Peoples also provides other loss mitigation options, such as forbearance and repayment plans, to assist borrowers who experience financial difficulties. In assessing whether or not a borrower is experiencing financial difficulty, Peoples considers information currently available regarding the financial condition of the borrower. This information includes, but is not limited to, whether (1) the borrower is currently in payment default on any of the borrower's debt; (2) a payment default is probable in the foreseeable future without the modification; (3) the borrower has declared or is in the process of declaring bankruptcy; and (4) the borrower's projected cash flow is insufficient to satisfy contractual payments due under the original terms of the loan without a modification. The allowance for credit losses for loans modified for borrowers experiencing financial difficulty is determined based on the allowance for credit losses policy as described in "Note 1 Summary of Significant Accounting Policies" of the Notes to the Consolidated Financial Statements included in Peoples' 2025 Form 10-K. 26 Table of Contents 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 % (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 made to loans during the three and six months ended June 30, 2026 and June 30, 2025, presented by loan classification. 27 Table of Contents Weighted-Average Term Extension (in months) 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 Weighted-Average Term Extension (in months) 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 June 30, 2025 Commercial real estate, other $ 494 Total loans that subsequently defaulted $ 494 For the Six Months Ended June 30, 2025 Commercial real estate, other $ 494 Commercial and industrial 18 Total loans that subsequently defaulted $ 512 (a) Represents the sum of amortized cost and gross charge-off as of period end. Excludes loans that liquidated either through foreclosure, deed-in-lieu of foreclosure, or a short sale. The following table displays an aging analysis of loans that were modified during the 12 months prior to June 30, 2026 and June 30, 2025, respectively, presented by classification and class of financing receivable. 28 Table of Contents As of June 30, 2026 (Dollars in thousands) 30-59 Days Delinquent 60-89 Days Delinquent 90+ Days Delinquent Total Delinquent Current Total Commercial real estate, other $ — $ — $ — $ — $ 1,874 $ 1,874 Commercial and industrial — — — — 3,665 3,665 Residential real estate — — — — 130 130 Home equity lines of credit — — — — 165 165 Total loans modified (a) $ — $ — $ — $ — $ 5,834 $ 5,834 (a) Represents the amortized cost basis as of period end. As of June 30, 2025 (Dollars in thousands) 30-59 Days Delinquent 60-89 Days Delinquent 90+ Days Delinquent Total Delinquent Current Total Commercial real estate, other $ — $ — $ 494 $ 494 $ 4,441 $ 4,935 Commercial and industrial — — 18 18 8,823 8,841 Residential real estate — — — — 207 207 Home equity lines of credit 44 — — 44 51 95 Consumer, indirect — — 10 10 — 10 Total loans modified (a) $ 44 $ — $ 522 $ 566 $ 13,522 $ 14,088 (a) Represents the amortized cost basis as of period end. Allowance for Credit Losses As discussed in "Note 1 Summary of Significant Accounting Policies" of the Notes to the Consolidated Financial Statements included in Peoples' 2025 Form 10-K, Peoples estimates the allowance for credit losses using relevant available information, from both internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. In management's estimation of expected credit losses, Peoples uses a one-year reasonable and supportable forecast period across all segments. Following the reasonable and supportable forecast period, Peoples reverts the macroeconomic variables to their long run average over a four-quarter reversion period. 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. 29 Table of Contents (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, June 30, 2026 Construction $ 1,391 $ 303 $ — $ — $ 1,694 Commercial real estate, other 19,726 1,252 ( 167 ) — 20,811 Commercial and industrial 18,804 2,470 ( 487 ) 37 20,824 Premium finance 749 916 ( 117 ) 21 1,569 Leases 16,475 5,548 ( 9,032 ) 1,375 14,366 Residential real estate 6,295 363 ( 234 ) 135 6,559 Home equity lines of credit 1,934 ( 154 ) ( 64 ) 12 1,728 Consumer, indirect 7,706 3,033 ( 3,366 ) 933 8,306 Consumer, direct 2,485 15 ( 409 ) 48 2,139 Deposit account overdrafts 111 511 ( 649 ) 134 107 Total $ 75,676 $ 14,257 $ ( 14,525 ) $ 2,695 $ 78,103 (a) Amount does not include the provision for the allowance for credit losses on unfunded commitments. 30 Table of Contents (Dollars in thousands) Beginning Balance, December 31, 2024 Provision for (Recovery of) Credit Losses (a) Charge-offs Recoveries Ending Balance, June 30, 2025 Construction $ 878 $ 469 $ — $ — $ 1,347 Commercial real estate, other 16,256 1,134 ( 250 ) 4 17,144 Commercial and industrial 13,283 5,484 ( 936 ) 23 17,854 Premium finance 662 287 ( 164 ) 9 794 Leases 12,893 16,987 ( 10,753 ) 506 19,633 Residential real estate 6,491 ( 335 ) ( 142 ) 99 6,113 Home equity lines of credit 1,792 34 ( 12 ) — 1,814 Consumer, indirect 8,576 1,967 ( 3,559 ) 659 7,643 Consumer, direct 2,396 69 ( 251 ) 34 2,248 Deposit account overdrafts 121 322 ( 522 ) 170 91 Total $ 63,348 $ 26,418 $ ( 16,589 ) $ 1,504 $ 74,681 (a) Amount does not include the provision for the allowance for credit losses on unfunded commitments. 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 credit losses" line of the Unaudited Consolidated Statements of Operations. Note 5 Goodwill and Other Intangible Assets Goodwill The following table details changes in the recorded amount of goodwill: For the Six Months Ended For the Year Ended (Dollars in thousands) June 30, 2026 December 31, 2025 Goodwill, beginning of period $ 363,199 $ 363,199 Goodwill recorded from acquisitions — — Goodwill, end of period $ 363,199 $ 363,199 Other Intangible Assets Other intangible assets were comprised of the following at June 30, 2026 , and at December 31, 2025 : 31 Table of Contents (Dollars in thousands) Core Deposits Customer Relationships Indefinite-Lived Trade Names Total June 30, 2026 Gross intangibles $ 54,186 $ 38,470 $ 2,491 $ 95,147 Accumulated amortization ( 38,021 ) ( 31,365 ) — ( 69,386 ) Total acquisition-related intangibles $ 16,165 $ 7,105 $ 2,491 $ 25,761 Servicing rights 995 Non-compete agreements 8 Total other intangibles $ 26,764 December 31, 2025 Gross intangibles $ 54,186 $ 38,470 $ 2,491 $ 95,147 Accumulated amortization ( 36,154 ) ( 29,846 ) — ( 66,000 ) Total acquisition-related intangibles $ 18,032 $ 8,624 $ 2,491 $ 29,147 Servicing rights 957 Non-compete agreements 16 Total other intangibles $ 30,120 Th e following table details estimated aggregate future amortization of other intangible assets at June 30, 2026: (Dollars in thousands) Core Deposits Customer Relationships Non-Compete Agreements Total Remaining six months of 2026 $ 1,868 $ 1,518 $ 8 $ 3,394 2027 3,043 2,188 — 5,231 2028 2,608 1,462 — 4,070 2029 2,359 971 — 3,330 2030 2,189 514 — 2,703 Thereafter 4,098 452 — 4,550 Total $ 16,165 $ 7,105 $ 8 $ 23,278 The weighted average amortization period of other intangible assets is 6.4 years. Note 6 Deposits Peoples’ deposit balances were comprised of the following: (Dollars in thousands) June 30, 2026 December 31, 2025 Retail certificates of deposits ("CDs"): $100 or more $ 1,077,362 $ 1,143,787 Less than $100 798,694 840,004 Total Retail CDs 1,876,056 1,983,791 Interest-bearing deposit accounts 1,094,873 1,092,252 Money market deposit accounts 995,487 945,313 Savings accounts 915,505 887,402 Governmental deposit accounts 755,024 739,939 Brokered CDs 225,621 416,099 Total interest-bearing deposits 5,862,566 6,064,796 Non-interest-bearing deposits 1,593,799 1,545,428 Total deposits $ 7,456,365 $ 7,610,224 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 32 Table of Contents 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. 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 Over 3 to 6 months 127,259 170,299 Over 6 to 12 months 134,165 83,387 Over 12 months 16,650 35,897 Total $ 416,938 $ 442,574 The contractual maturities of CDs for each of the next five years, including the remainder of 2026, and thereafter are as follows: (Dollars in thousands) Retail Brokered Total Remaining 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 Year ending December 31, 2028 9,050 23,950 33,000 Year ending December 31, 2029 5,036 45,833 50,869 Year ending December 31, 2030 3,370 — 3,370 Thereafter 1,224 — 1,224 Total CDs $ 1,876,056 $ 225,621 $ 2,101,677 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. Additional information regarding Peoples' interest rate swaps can be found in "Note 1 0 Derivative Financial Instruments." Note 7 Stockholders’ Equity The following table details the progression in Peoples’ common shares issued and treasury stock during the six months ended June 30, 2026: Common Shares Treasury Stock Shares at December 31, 2025 36,836,943 1,215,120 Changes related to stock-based compensation awards: Restricted shares — ( 180,962 ) Grant of unrestricted shares — ( 900 ) Purchase of treasury stock — 6,464 Disbursed out of treasury stock — ( 10,545 ) Shares issued under dividend reinvestment plan 23,901 — Shares issued under compensation plan for Boards of Directors — ( 7,400 ) Shares issued under employee stock purchase plan — ( 13,078 ) 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 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 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: 2026 2025 First quarter $ 0.41 $ 0.40 Second quarter 0.42 0.41 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 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, June 30, 2026 $ ( 71,234 ) $ 373 $ ( 70,861 ) Note 8 Employee Benefit Plans Peoples maintains a retirement savings plan, or 401(k) plan, which covers substantially all employees. The plan provides participants with the opportunity to save for retirement on a tax-deferred basis or through Roth contributions. Since January 1, 2021, Peoples matches 100 % of participants’ contributions up to 6 % of the participants’ compensation. Matching contributions made by Peoples totaled $ 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 Six Months Ended June 30, June 30, (Dollars in thousands, except per common share data) 2026 2025 2026 2025 Net income available to common shareholders $ 27,953 $ 21,212 $ 56,959 $ 45,548 Less: Dividends paid on unvested common shares 212 212 412 422 Less: Undistributed income allocated to unvested common shares 81 17 135 54 Net earnings allocated to common shareholders $ 27,660 $ 20,983 $ 56,412 $ 45,072 Weighted-average common shares outstanding 35,173,525 34,972,065 35,141,267 34,934,105 Effect of potentially dilutive common shares 393,041 359,642 388,248 365,313 Total weighted-average diluted common shares outstanding 35,566,566 35,331,707 35,529,515 35,299,418 Earnings per common share: Basic $ 0.79 $ 0.60 $ 1.61 $ 1.29 Diluted $ 0.78 $ 0.59 $ 1.59 $ 1.28 Anti-dilutive common shares excluded from calculation: Restricted common shares — 144,274 243 142,032 33 Table of Contents Note 10 Derivative Financial Instruments Peoples utilizes interest rate swap agreements as part of its asset/liability management strategy to help manage its interest rate risk position. The notional amount of the interest rate swaps does not represent amounts exchanged by the parties. The amount exchanged is determined by reference to the notional amount and the other terms of the individual interest rate swap agreements. Derivative Financial Instruments and Hedging Activities - Risk Management Objective of Using Derivative Financial Instruments Peoples is exposed to certain risks arising from both its business operations and economic conditions. Peoples principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. Peoples manages economic risks, including interest rate, liquidity and credit risk, primarily by managing the amount, sources and duration of its assets and liabilities. Peoples also manages interest rate risk through the use of derivative financial instruments. Specifically, Peoples enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known or expected cash amounts, the values of which are determined by interest rates. Peoples’ derivative financial instruments are used to manage differences in the amount, timing and duration of Peoples' known or expected cash receipts and its known or expected cash payments principally related to certain variable rate borrowings. Peoples also has interest rate derivative financial instruments that result from a service provided to certain qualifying customers and, therefore, are not used to manage interest rate risk in Peoples' assets or liabilities. Peoples manages a matched book with respect to customer-related derivative financial instruments in order to minimize its net risk exposure resulting from such transactions. Cash Flow Hedges of Interest Rate Risk Peoples' objectives in using interest rate derivative financial instruments are to add stability to interest income and expense, and to manage its exposure to interest rate movements. To accomplish these objectives, Peoples has entered into interest rate swaps as part of its interest rate risk management strategy. These interest rate swaps are designated as cash flow hedges and involve the receipt of variable rate amounts from a counterparty in exchange for Peoples making fixed payments. At 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 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. Peoples assesses the effectiveness of each hedging relationship by comparing the changes in cash flows of the hedging derivative financial instrument with the changes in cash flows of the designated hedged transaction. The reset dates and the payment dates on the brokered CDs or FHLB advances are matched to the reset dates and payment dates on the receipt of the term SOFR of the swaps to ensure effectiveness of the cash flow hedge. For the 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) June 30, 2026 December 31, 2025 Notional amount $ 35,000 $ 45,000 Weighted average pay rates 2.70 % 2.52 % Weighted average receive rates 4.10 % 3.73 % Weighted average maturity 1.1 years 1.3 years Pre-tax changes in fair value included in AOCI $ 488 $ 512 34 Table of Contents 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 Six Months Ended June 30, June 30, (Dollars in thousands) 2026 2025 2026 2025 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: June 30, 2026 December 31, 2025 (Dollars in thousands) Notional Amount Fair Value Notional Amount Fair Value Included in "Other assets": Interest rate swaps related to debt $ 35,000 $ 481 $ 45,000 $ 501 Non-Designated Hedges Peoples Bank maintains an interest rate protection program for commercial loan customers, which was established in 2010. Under this program, Peoples Bank originates variable rate loans with interest rate swaps, where the customer enters into an interest rate swap with Peoples Bank on terms that match the terms of the loan. By entering into the interest rate swap with the customer, Peoples Bank effectively provides the customer with a fixed rate loan while creating a variable rate asset for Peoples Bank. Peoples Bank offsets its exposure in the interest rate swap by entering into an offsetting interest rate swap with an unaffiliated institution. These interest rate swaps do not qualify as designated hedges; therefore, each interest rate swap is accounted for as a standalone derivative financial instrument. These interest rate swaps did not have a material impact on Peoples' results of operations or financial condition at or for the three 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: June 30, 2026 December 31, 2025 (Dollars in thousands) Notional Amount Fair Value Notional Amount Fair Value Included in "Other assets": Interest rate swaps related to commercial loans $ 553,937 $ 12,980 $ 548,785 $ 13,907 Netting Adjustments (a) ( 3,149 ) ( 4,700 ) Net Derivative Assets on the Balance Sheet $ 553,937 $ 9,831 $ 548,785 $ 9,207 Included in "Accrued expenses and other liabilities": Interest rate swaps related to commercial loans $ 553,937 $ 10,005 $ 548,785 $ 11,548 Netting Adjustments (a) ( 129 ) ( 2,273 ) Net Derivatives Liabilities on the Balance Sheet $ 553,937 $ 9,876 $ 548,785 $ 9,275 (a) Netting adjustments represent the amounts recorded to convert our derivative assets and liabilities from a gross basis to a net basis in accordance with the applicable accounting guidance. The net basis takes into account the impact of master netting agreements that allow us to settle derivative contracts with a single counterparty on a net basis. Total derivative assets and liabilities include these netting adjustments. Pledged Collateral Peoples Bank pledges or receives collateral for all interest rate swaps. When the fair value of Peoples Bank interest rate swaps is in a net liability position, Peoples Bank must pledge collateral, and, when the fair value of Peoples Bank interest rate swaps is in a net asset position, the respective counterparties must pledge collateral. At 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 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, 35 Table of Contents 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. In general, common shares issued in connection with stock-based awards are issued from treasury shares to the extent available. If no treasury shares are available, common shares are issued from authorized but unissued common shares. Restricted Common Shares Under the 2006 Equity Plan, Peoples may award restricted common shares to officers, key employees and non-employee directors. In general, the restrictions on the restricted common shares awarded to officers and key employees expire after periods ranging from one to five years . Since 2018, common shares awarded to non-employee directors have vested immediately upon grant with no restrictions. In the first 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. 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 January 1, 2026 127,672 $ 28.49 555,561 $ 30.08 Awarded 71,821 32.99 230,712 33.56 Released ( 5,047 ) 28.62 ( 161,975 ) 30.30 Forfeited ( 8,274 ) 32.10 ( 8,876 ) 30.89 June 30, 2026 186,172 $ 30.06 615,422 $ 31.31 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 Peoples recognizes stock-based compensation, which is included as a component of Peoples’ salaries and employee benefit costs, for restricted and unrestricted common shares, as well as purchases made by participants in the employee stock purchase plan. For restricted common shares, Peoples recognizes stock-based compensation based on the estimated fair value of the awards expected to vest on the grant date. The estimated fair value is then expensed over the vesting period, which is normally three years . Peoples also has an employee stock purchase plan whereby employees can purchase Peoples' common shares at a discount of 15 %. The following table summarizes the amount of stock-based compensation expense and related tax benefit recognized for each period: Three Months Ended Six Months Ended June 30, June 30, (Dollars in thousands) 2026 2025 2026 2025 Employee stock-based compensation expense: Stock grant expense $ 1,496 $ 1,416 $ 3,365 $ 3,846 Employee stock purchase plan expense 36 26 70 71 Total employee stock-based compensation expense 1,532 1,442 $ 3,435 $ 3,917 Non-employee director stock-based compensation expense 131 131 $ 262 $ 247 Total stock-based compensation expense 1,663 1,573 $ 3,697 $ 4,164 Recognized tax benefit ( 383 ) ( 367 ) ( 851 ) ( 971 ) Net stock-based compensation expense $ 1,280 $ 1,206 $ 2,846 $ 3,193 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 $ 10.1 million at June 30, 2026, which will be recognized over a weighted-average period of 2.2 years. 36 Table of Contents Note 12 Revenue The following table details Peoples' revenue from contracts with customers: Three Months Ended Six Months Ended June 30, June 30, (Dollars in thousands) 2026 2025 2026 2025 Insurance income: Commission and fees from sale of insurance policies (a) $ 4,313 $ 4,450 $ 8,689 $ 8,962 Performance-based commissions (b) 18 99 1,222 1,641 Trust and investment income: Fiduciary income (a) 3,383 3,042 6,459 5,957 Brokerage income (a) 2,603 2,239 5,132 4,385 Electronic banking income: Interchange income (b) 5,468 5,111 10,371 9,956 Promotional and usage income (a) 1,075 1,161 2,099 2,201 Deposit account service charges: Ongoing maintenance fees for deposit accounts (a) 1,928 1,670 3,809 3,313 Transaction-based fees (b) 2,560 2,388 4,946 4,760 Commercial loan swap fees (b) 197 734 507 1,271 Other non-interest income transaction-based fees (b) 499 374 1,173 789 Total revenue from contracts with customers $ 22,044 $ 21,268 $ 44,407 $ 43,235 Timing of revenue recognition: Services transferred over time $ 13,302 $ 12,562 $ 26,188 $ 24,818 Services transferred at a point in time 8,742 8,706 18,219 18,417 Total revenue from contracts with customers $ 22,044 $ 21,268 $ 44,407 $ 43,235 (a) Services transferred over time. (b) Services transferred at a point in time. Peoples records contract assets for income that has been recognized over a period of time for fulfillment of performance obligations to e-banking income and certain insurance income, but payment has not yet been received. This income typically relates to bonuses for which Peoples is eligible, but will not receive until a certain time in the future. Peoples records contract liabilities for payments received for commission income related to the sale of insurance policies, for which the performance obligations have not yet been fulfilled. The contract liabilities are recognized as income over time, during the period in which the performance obligations are fulfilled, which is over the insurance policy period. Peoples also records contract liabilities for bonuses received related to e-banking income, for which the performance obligations have not yet been fulfilled. The contract liabilities are recognized as income over time, during the period in which the performance obligations are fulfilled related to e-banking income. The following table details the changes in Peoples' contract assets and contract liabilities for the six-month period ended June 30, 2026: Contract Assets Contract Liabilities (Dollars in thousands) Balance, January 1, 2026 $ 972 $ 5,848 Additional income receivable 119 — Additional deferred income — 7,101 Receipt of income previously receivable ( 79 ) — Recognition of income previously deferred — ( 7,451 ) Balance, June 30, 2026 $ 1,012 $ 5,498 37 Table of Contents Note 13 Leases Peoples has elected certain practical expedients, in accordance with ASC 842 - Leases ("ASC 842"). As a lessor, Peoples has made an accounting policy election to exclude from the consideration in the contract, and from variable payments not included in the consideration in the contract, all sales and other similar taxes assessed. Peoples has also made an accounting policy election to account for each separate lease component of a contract and its associated non-lease components as a single lease component for all leases subject to ASC 842. Lessor Arrangements Peoples began originating leases with the acquisition of NSL and increased its portfolio with the acquisition of Vantage. The leases for NSL are generally classified as sales-type leases, as the leases are structured with a dollar buyout, whereby the lessee pays one dollar at maturity of the lease to purchase the equipment. The leases for Vantage are generally classified as sales-type leases, as the payment structure and term triggered that accounting treatment, whereby either (i) the lease is structured as a fair market value buyout, whereby the lessee has the option to purchase the leased equipment at its fair market value at maturity of the lease, or (ii) the lessee purchases the leased equipment for one dollar at maturity of the lease. Vantage also originates operating leases, which are generally structured over a shorter term and do not meet the criteria of a sales-type lease. These leases do not typically contain residual value guarantees; however, Peoples reduces its residual asset risk by obtaining a security deposit from the lessee. As a lessor, Peoples originates commercial equipment leases either directly to the customer or indirectly through vendor programs. Equipment leases relate to healthcare, manufacturing, office, restaurant, information technology, general warehousing, storage equipment, vocational trucks and trailers, and other equipment. Leases structured with a fair market value buyout include an estimated residual value, which is assessed for impairment as part of the allowance for credit losses. When Peoples originates an operating lease, it records an operating lease asset recognized in “Other assets” which is depreciated over its useful life. Operating leases assets are assessed for impairment consistent with Peoples’ fixed assets. Sales-type leases originated by Peoples, that Peoples has the positive intent and ability to hold for the foreseeable future or to maturity or payoff, are reported at the net investment of the lease, net of initial direct costs, charge-offs and an allowance for credit losses. Peoples considers leases past due if any required payments have not been received as of the date such payments were required to be made under the terms of the lease agreement. Upon detection of the reduced ability of a lessee to meet cash flow obligations, leases are typically charged down to the net realizable value, with the residual balance placed on nonaccrual status. Leases deemed to be uncollectable are charged against the allowance for credit losses, while recoveries of previously charged-off amounts are credited to the allowance for credit losses. Lease income noted in the table below includes (i) operating lease income, (ii) gains on the early termination of leases, net of any associated purchase accounting adjustments, (iii) month-to-month lease payments in excess of net investment in the lease, (iv) fees received for referrals, (v) gains and losses recognized on the sales of residual assets and (vi) syndication income. Additional information regarding Peoples' leases can be found in "Note 4 Loans and Leases." The table below details Peoples' lease income: Three Months Ended 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 Lease income 4,977 4,211 9,558 7,679 Total lease income $ 13,157 $ 14,498 $ 26,316 $ 28,164 (a) Included in "Interest and fees on loans and leases" in the Unaudited Consolidated Statements of Operations. For additional information, see "Note 4 Loans and Leases" of the Notes to the Unaudited Condensed Consolidated Financial Statements. 38 Table of Contents The following table summarizes the net investment in leases, which is included in "Loans and leases, net of deferred fees and costs" on the Unaudited Consolidated Balance Sheets: (Dollars in thousands) June 30, 2026 December 31, 2025 Lease payments receivable, at amortized cost $ 373,972 $ 393,089 Estimated residual values 30,835 33,125 Initial direct costs 4,431 5,535 Deferred revenue ( 55,286 ) ( 66,100 ) Net investment in leases 353,952 365,649 Allowance for credit losses - leases ( 14,366 ) ( 16,475 ) Net investment in leases, after allowance for credit losses $ 339,586 $ 349,174 The following table summarizes the contractual maturities of leases: (Dollars in thousands) Balance Remaining six months ending December 31, 2026 $ 84,350 Year ending December 31, 2027 72,016 Year ending December 31, 2028 82,302 Year ending December 31, 2029 64,129 Year ending December 31, 2030 57,746 Thereafter 13,429 Lease payments receivable, at amortized cost $ 373,972 Lessee Arrangements Peoples leases certain banking facilities and equipment under various agreements with original terms providing for fixed monthly payments over periods generally ranging from two to 30 years. Certain leases may include options to extend or terminate the lease. Only those renewal and termination options which Peoples is reasonably certain of exercising are included in the calculation of the lease liability. Certain leases contain rent escalation clauses calling for rent increases over the term of the lease, which are included in the calculation of the lease liability. At 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. Operating lease ROU assets and lease liabilities are recognized at the commencement or the remeasurement date of a lease based on the present value of lease payments over the remaining lease term. Operating lease ROU assets include lease payments made at or before the commencement date and initial indirect costs. Operating lease ROU assets are presented net of any lease incentives. Short-term leases of certain facilities and equipment, with lease terms of 12 months or less, are recognized on a straight-line basis over the lease term and do not have an ROU asset or lease liability. The table below details Peoples' lease expense, which is included in "Net occupancy and equipment expense" in the Unaudited Consolidated Statements of Operations: Three Months Ended 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 Short-term lease expense 371 683 755 1,078 Variable lease expense 25 9 35 18 Total lease expense $ 1,025 $ 1,329 $ 2,043 $ 2,414 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. 39 Table of Contents The following table details the ROU assets, the lease liabilities and other information related to Peoples' operating leases at the dates shown: (Dollars in thousands) June 30, 2026 December 31, 2025 ROU assets: Other assets $ 8,433 $ 9,340 Lease liabilities: Accrued expenses and other liabilities $ 9,004 $ 9,912 Other information: Weighted-average remaining lease term 8.6 years 8.7 years Weighted-average discount rate 4.17 % 4.16 % Additions for ROU assets obtained during the year $ 153 $ 1,333 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 six months ending December 31, 2026 $ 1,252 Year ending December 31, 2027 $ 2,208 Year ending December 31, 2028 $ 1,625 Year ending December 31, 2029 $ 1,173 Year ending December 31, 2030 $ 671 Thereafter $ 3,938 Total undiscounted lease payments $ 10,867 Imputed interest $ ( 1,863 ) Total lease liabilities $ 9,004 40 Table of Contents