PEOPLES BANCORP INC 10-Q

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Management’s Discussion and Analysis (“MD&A”) represents an overview of the results of operations and financial condition of Peoples at and for the three and six months ended June 30, 2026 and June 30, 2025. This MD&A should be read in conjunction with the Unaudited Condensed Consolidated Financial Statements and the Notes thereto. Certain statements in this Form 10-Q, which are not historical fact, are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. These forward-looking statements are identified by the fact they are not historical facts and include words such as "anticipate," "estimate," "may," "feel," "expect," "believe," "plan," "will," "will likely," "would," "should," "could," "project," "goal," "target," "potential," "seek," "intend," "continue," "remain," and similar expressions. These forward-looking statements reflect management's current expectations based on all information available to management and its knowledge of Peoples' business and operations. Additionally, Peoples' financial condition, results of operations, plans, objectives, future performance and business are subject to risks and uncertainties that may cause actual results to differ materially. These risks and uncertainties include, but are not limited to: (1) the effects of interest rate policies, including any changes to such policies that may result from potential changes in the composition of the Federal Reserve Board, changes in the interest rate environment due to economic conditions and/or the fiscal and monetary policy measures undertaken by the U.S. government and the Federal Reserve Board, including changes in the Federal Funds Target Rate, in response to such economic conditions, which may adversely impact interest rates, the interest rate yield curve, interest margins, loan demand and interest rate sensitivity; (2) the effects of inflationary pressures on borrowers’ liquidity and ability to repay; (3) the success, impact, and timing of the implementation of Peoples' business strategies and Peoples' ability to manage strategic initiatives, including the interest rate policies of the Federal Reserve Board, the completion and successful integration of acquisitions, including the pending merger with Citizens (the "Citizens merger"), and the expansion of commercial and consumer lending activities; (4) competitive pressures among financial institutions, or from non-financial institutions, which may increase significantly, including product and pricing pressures, which can in turn impact Peoples' credit spreads, changes to third-party relationships and revenues, changes in the manner of providing services, customer acquisition and retention pressures, and Peoples' ability to attract, develop and retain qualified professionals; (5) uncertainty regarding the nature, timing, cost, and effect of legislative or regulatory changes or actions, or deposit insurance premium levels, promulgated and to be promulgated by governmental and regulatory agencies in the State of Ohio, the FDIC, the Federal Reserve Board and the Consumer Financial Protection Bureau, which may subject Peoples, its subsidiaries, or one or more acquired companies to a variety of new and more stringent legal and regulatory requirements; (6) the effects of easing restrictions on participants in the financial services industry; (7) current and future local, regional, national and international economic conditions (including the impact of persistent inflation, supply chain issues or labor shortages, supply-demand imbalances affecting local real estate prices, high unemployment rates in the local or regional economies in which Peoples operates and/or the U.S. economy generally, the current or future U.S. government shutdown, an increasing federal government budget deficit, the failure of the federal government to raise the federal debt ceiling, potential or imposed tariffs, a U.S. withdrawal from or significant renegotiation of trade agreements, trade wars and other changes in trade regulations, changes in the relationship of the U.S. and U.S. global trading partners), and changes in the federal, state, and local governmental policy and the impact these conditions may have on Peoples, Peoples' customers and Peoples' counterparties, and Peoples' assessment of the impact, which may be different than anticipated; (8) Peoples may issue equity securities in connection with future acquisitions, which could cause ownership and economic dilution to Peoples' current shareholders; (9) changes in prepayment speeds, loan originations, levels of nonperforming assets, delinquent loans, charge-offs, and customer and other counterparties' performance and creditworthiness generally, which may be less favorable than expected in light of recent inflationary pressures and continued elevated interest rates, and may adversely impact the amount of interest income generated; (10) Peoples may have more credit risk and higher credit losses to the extent there are loan concentrations by location or industry of borrowers or collateral; (11) future credit quality and performance, including expectations regarding future credit losses and the allowance for credit losses; 41 Table of Contents (12) changes in accounting standards, policies, estimates or procedures may adversely affect Peoples' reported financial condition or results of operations; (13) the impact of assumptions, estimates and inputs used within models, which may vary materially from actual outcomes, including under the CECL model; (14) adverse changes in the conditions and trends in the financial markets, including recent inflationary pressures, and the impacts of potential or imposed tariffs on markets, which may adversely affect the fair value of securities within Peoples' investment portfolio, the interest rate sensitivity of Peoples' consolidated balance sheet, and the income generated by Peoples' trust and investment activities; (15) the volatility from quarter to quarter of mortgage banking income, whether due to interest rates, demand, the fair value of mortgage loans, or other factors; (16) Peoples' ability to receive dividends from Peoples' subsidiaries; (17) Peoples' ability to maintain required capital levels and adequate sources of funding and liquidity; (18) the impact of larger or similar-sized financial institutions encountering problems, such as the failure in 2024 of Republic First Bank, and closures in 2023 of Silicon Valley Bank in California, Signature Bank in New York, and First Republic Bank in California, which may adversely affect the banking industry and/or Peoples' business generation and retention, funding and liquidity, including Peoples' continued ability to grow deposits or maintain adequate deposit levels, and may further result in potential increased regulatory requirements, increased reputational risk and potential impacts to macroeconomic conditions; (19) Peoples' ability to secure confidential information and deliver products and services through the use of computer systems and telecommunications networks, including those of Peoples' third-party vendors and other service providers, which may prove inadequate, and could adversely affect customer confidence in Peoples and/or result in Peoples incurring a financial loss; (20) Peoples' ability to anticipate and respond to technological changes, and Peoples' reliance on, and the potential failure of, a number of third-party vendors to perform as expected, including Peoples' primary core banking system provider, which can impact Peoples' ability to respond to customer needs and meet competitive demands; (21) operational issues stemming from and/or capital spending necessitated by the potential need to adapt to industry changes in information technology systems on which Peoples and Peoples' subsidiaries are highly dependent; (22) changes in consumer spending, borrowing and saving habits, whether due to changes in retail distribution strategies, consumer preferences and behavior, changes in business and economic conditions, legislative or regulatory initiatives, or other factors, which may be different than anticipated; (23) the adequacy of Peoples' internal controls and risk management program in the event of changes in strategic, reputational, market, economic, operational, cybersecurity, compliance, legal, asset/liability repricing, liquidity, credit and interest rate risks associated with Peoples' business; (24) the impact on Peoples' businesses, personnel, facilities, or systems of losses related to acts of fraud, theft, misappropriation or violence; (25) the impact on Peoples' businesses, as well as on the risks described above, of various domestic or international widespread natural or other disasters (including severe weather events), pandemics, cybersecurity attacks, system failures, civil unrest, military or terrorist activities or international conflicts (including Russia’s war in Ukraine and the ongoing conflicts in the Middle East); (26) the potential deterioration of the U.S. economy due to financial, political or other shocks; (27) the potential influence on the U.S. financial markets and economy from the effects of climate change, including any enhanced regulatory, compliance, credit and reputational risks and costs; (28) the impact on Peoples' businesses and operating results of any costs associated with obtaining rights in intellectual property claimed by others and adequately protecting Peoples' intellectual property; (29) Peoples' ability to integrate the pending Citizens merger, which may be unsuccessful, or may be more difficult, time-consuming or costly than expected; (30) the risk that the proposed Citizens merger is not completed as a result of a failure to satisfy the conditions of the Citizens merger, including receipt of required regulatory, shareholder, and other approvals; (31) the possibility that the anticipated benefits of the proposed Citizens merger, including expected revenue synergies and cost savings, will not be realized or will not be realized within expected time periods; 42 Table of Contents (32) risks and uncertainties associated with Peoples' entry into new geographic markets and risks resulting from Peoples' inexperience in these new geographic markets; (33) changes in laws or regulations imposed by Peoples' regulators impacting Peoples' capital actions, including dividend payments and share repurchases; (34) the vulnerability of Peoples' network and online banking portals, and the systems of parties with whom Peoples contracts, to unauthorized access, computer viruses, phishing schemes, spam attacks, human error, natural disasters, power loss and other security breaches; (35) regulatory and legal matters, including the failure to resolve any outstanding matters on a timely basis and the potential of new regulatory matters, litigation, or other legal actions, which may result in, among other things, additional costs, fines, penalties, restrictions on our business activities, reputational harm, or other adverse consequences; (36) Peoples' business may be adversely affected by increased political and regulatory scrutiny of corporate environmental, social and governance ("ESG") practices; (37) the effect of a fall in stock market prices on Peoples' asset and wealth management business; and (38) other risk factors relating to the banking industry or Peoples as detailed from time to time in Peoples' reports filed with the Securities and Exchange Commission (the "SEC"), including those risk factors included in the disclosures under the heading "ITEM 1A. RISK FACTORS" of Peoples' 2025 Form 10-K as supplemented by the disclosures under the heading "ITEM 1A. RISK FACTORS" of Peoples' Quarterly Report on Form 10-Q for the quarterly period ending March 31, 2026. Peoples encourages readers of this Form 10-Q to understand forward-looking statements to be strategic objectives rather than absolute targets of future performance. Peoples undertakes no obligation to update any forward-looking statements to reflect events or circumstances after the filing of this Form 10-Q or to reflect the occurrence of unanticipated events, except as required by applicable legal requirements. Copies of documents filed with the SEC are available free of charge at the SEC's website at http://www.sec.gov and/or from Peoples' website – www.peoplesbancorp.com under the “Investor Relations” section. All forward-looking statements speak only as of the filing date of this Form 10-Q and are expressly qualified in their entirety by the cautionary statements. Although management believes the expectations in these forward-looking statements are based on reasonable assumptions within the bounds of management’s knowledge of Peoples’ business and operations, it is possible that actual results may differ materially from these projections. This discussion and analysis should be read in conjunction with the Audited Consolidated Financial Statements, and Notes to the Audited Consolidated Financial Statements, contained in Peoples’ 2025 Form 10-K, as well as the Unaudited Condensed Consolidated Financial Statements, Notes to the Unaudited Condensed Consolidated Financial Statements, ratios, statistics and discussions contained elsewhere in this Form 10-Q. Business Overview The following discussion and analysis of Peoples’ Unaudited Condensed Consolidated Financial Statements is presented to provide insight into management’s assessment of the financial condition and results of operations. Peoples is a diversified financial services holding company that makes available a complete line of banking, trust and investment, insurance, premium financing and equipment leasing solutions through its subsidiaries. Peoples' business activities are currently limited to one reporting unit and reportable operating segment, which is community banking. Peoples provides services through traditional offices, automated teller machines ("ATMs"), interactive teller machines ("ITMs"), mobile banking, telephone and internet-based banking. Peoples offers a complete array of insurance products through Peoples Insurance, a subsidiary of Peoples Bank. Brokerage services are offered by Peoples exclusively through an unaffiliated registered broker-dealer located at Peoples Bank's offices. Peoples Bank offers insurance premium finance lending nationwide through its Peoples Premium Finance division. Peoples also offers lease financing through its North Star Leasing division and through Vantage, a subsidiary of Peoples Bank. As of June 30, 2026, Peoples had 144 locations, including 127 full-service bank branches in Ohio, Kentucky, West Virginia, Virginia, Washington D.C. and Maryland. Peoples Bank is subject to regulation and examination primarily by the Ohio Division of Financial Institutions (the "ODFI"), the FRB of Cleveland and the FDIC. Peoples Bank must also follow the regulations promulgated by the Consumer Financial Protection Bureau (the "CFPB"), which regulates consumer financial products and services and certain financial services providers. Peoples Insurance is subject to regulation by the Ohio Department of Insurance and the state insurance regulatory agencies of those states in which Peoples Insurance may do business. Critical Accounting Policies The accounting and reporting policies of Peoples conform to US GAAP. The preparation of the financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could materially differ from those estimates. Note 1 of the Notes to the Unaudited Condensed Consolidated Financial Statements describes Peoples' significant accounting policies. Management has identified the accounting 43 Table of Contents policies that, due to the judgments, estimates and assumptions inherent in those policies, are critical to understanding Peoples’ Unaudited Condensed Consolidated Financial Statements, and this MD&A at June 30, 2026, which have been disclosed in Peoples' 2025 Form 10-K and updated as necessary in "Note 1 Summary of Significant Accounting Policies" in the Notes to the Unaudited Condensed Consolidated Financial Statements included in this Form 10-Q. This MD&A should be read in conjunction with those accounting policies. New Accounting Guidance Pending Adoption ASU 2025-08 - Financial Instruments - Credit Losses (Topic 326): Purchased Loans: The FASB issued Accounting Standards Update (“ASU”) 2025-08 on November 12, 2025. The amendments “expand the population of acquired financial assets subject to the gross-up approach in Topic 326.” Specifically, the ASU expands the scope to include purchased “seasoned” loans, which are evaluated after purchase credit deteriorated (“PCD”) loans have been identified. These seasoned loans are defined as non-PCD loans that are obtained in a business combination accounted for using the acquisition method or non-PCD loans that are (i) obtained through a transfer that is not a business combination accounted for using the acquisition method or (ii) initially recognized through the consolidation of a variable interest entity. ASU 2025-08 applies to all public entities subject to the guidance in Topic 326, including public business entities, private companies, and not-for-profit entities. The amendments in this update apply “prospectively to loans that are acquired on or after the initial application date.” The amendments in ASU 2025-08 are effective for all entities for fiscal years beginning after December 15, 2026 and interim periods within those annual reporting periods, with early adoption permitted. Peoples is currently evaluating the impact of this guidance. Summary of Recent Transactions and Events The following is a summary of recent transactions and events that have impacted or are expected to impact Peoples’ results of operations or financial condition: ◦ On April 21, 2026, Peoples announced the signing of a definitive agreement and plan of merger pursuant to which Peoples will acquire Citizens National Corporation ("Citizens"), a bank holding company headquartered in Paintsville, Kentucky, and the parent company of Citizens Bank of Kentucky, Inc. ("Citizens Bank"), in a cash and stock transaction. Under the terms of the agreement and plan of merger, Citizens will merge with and into Peoples, and Citizens Bank will subsequently merge with and into Peoples Bank, in a transaction valued at approximately $76.6 million. ◦ For the second quarter of 2026, Peoples recorded a provision for credit losses of $4.7 million, compared to a provision for credit losses of $9.7 million for the linked quarter and a provision for credit losses of $16.6 million for the second quarter of 2025. The provision for credit losses for the second quarter of 2026 was driven by net charge-offs and an increase in individually-analyzed loans, offset by a reduction of balances within loan segments with higher loss rates. The provision for credit losses for the linked quarter was primarily driven by net charge-offs and a deterioration in the macroeconomic forecasts used within the CECL model. The provision for the second quarter of 2025 was primarily 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. For more information, please refer to the section titled "RESULTS OF OPERATIONS - Provision for Credit Losses" found later in this MD&A. ◦ To combat the effects of ongoing inflationary pressures, the Federal Reserve Board increased the Federal Funds Target Rate range to 0.25% to 0.50% beginning on March 16, 2022, and continued to raise rates up to 5.25% to 5.50% on July 27, 2023. This rate remained unchanged until the latter half of 2024, where multiple rate cuts reduced the rate down to 4.25% to 4.50%. The Federal Reserve Board cut interest rates three times during 2025, further reducing the rate to 3.50% to 3.75%. The Federal Reserve Board will remain data dependent on future rate changes. The impact of these transactions and events, where material, is discussed in the applicable sections of this MD&A. EXECUTIVE SUMMARY Peoples reported net income of $28.0 million for the second quarter of 2026, representing earnings per diluted common share of $0.78. In comparison, Peoples reported net income of $29.0 million, representing earnings per diluted common share of $0.81, for the first quarter of 2026, and net income of $21.2 million, representing earnings per diluted common share of $0.59, for the second quarter of 2025. Non-core items, which includes one-time losses and expenses, negatively impacted earnings per diluted common share by $0.18 for the second quarter of 2026, $0.01 for the first quarter of 2026, and $0.01 for the second quarter of 2025. For the six months ended June 30, 2026, Peoples recorded net income of $57.0 million, or $1.59 per diluted common share, compared to $45.5 million, or $1.28 per diluted common share, for the six months ended June 30, 2025. Net interest income was $92.7 million for the second quarter of 2026, and increased $2.3 million, or 3%, when compared to the linked quarter. Net interest margin was 4.23% for the second quarter of 2026, compared to 4.16% for the linked quarter. The increase 44 Table of Contents in net interest income and net interest margin was primarily driven by a reduction in deposit costs compared to the linked quarter. Net interest income for the second quarter of 2026 increased $5.2 million, or 6%, compared to the second quarter of 2025. Net interest margin for the second quarter of 2026 increased 8 basis points compared to 4.15% for the second quarter of 2025. The increases in net interest income and net interest margin were primarily driven by lower deposit and borrowing costs compared to the second quarter of 2025. For the first six months of 2026, net interest income increased $10.3 million compared to the same period of 2025, while net interest margin increased 6 basis points to 4.20%. The increases in net interest income and net interest margin were driven by lower deposit costs and increased interest income compared to the first half of 2025. Accretion income, net of amortization expense, was $1.1 million for the second quarter of 2026, $1.3 million for the first quarter of 2026 and $2.6 million for the second quarter of 2025, which added 5 basis points, 6 basis points and 12 basis points, respectively, to net interest margin. The decrease in accretion income for the second quarter of 2026 when compared to the linked quarter and the second quarter of 2025 was driven by lower unamortized loan purchase discount balance in 2026 associated with the Limestone Bancorp Inc. merger (the "Limestone Merger"), coupled with fewer related loan payoffs during the second quarter of 2026. Accretion income, net of amortization expense, was $2.4 million and $6.1 million for the first six months of 2026 and 2025, respectively. Accretion income added 6 basis points and 15 basis points to net interest margin for the first six months of 2026 and 2025, respectively. The decrease in accretion income for the first six months of 2026 compared to the same period in 2025 was due to lower unamortized loan purchase discount balance in 2026 from the Limestone Merger. The provision for credit losses was $4.7 million for the second quarter of 2026, compared to a provision for credit losses of $9.7 million for the linked quarter and a provision for credit losses of $16.6 million for the second quarter of 2025. The provision for credit losses for the second quarter of 2026 was primarily driven by net charge-offs and an increase in individually-analyzed loans, partially offset by a reduction in balances of loan segments with higher loss rates. The provision for credit losses for the linked quarter was primarily driven by net charge-offs and a deterioration in the economic forecasts used within the CECL model. Net charge-offs for the second quarter of 2026 were $5.2 million, or 0.31% of average total loans annualized, compared to net charge-offs of $6.6 million, or 0.40% of average total loans annualized, for the linked quarter and net charge-offs of $7.0 million, or 0.43% of average total loans annualized, for the second quarter of 2025. For additional information on credit trends and the allowance for credit losses, see the "FINANCIAL CONDITION - Allowance for Credit Losses" section below. The provision for credit losses for the first six months of 2026 was $14.4 million, compared to a provision for credit losses of $26.8 million for the first six months of 2025. The provision for credit losses during the first six months of 2026 was mainly a result of net charge-offs, a deterioration in the macro-economic conditions used within the CECL model, and an increase in individually-analyzed loans. The provision for credit losses for the first six months of 2025 was mainly a result of (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 first six months of 2026 were $11.8 million, or 0.35% of average total loans and leases annualized, compared to net charge-offs of $15.1 million, or 0.48% annualized, for the first six months of 2025. For additional information on credit trends and the allowance for credit losses, see the "FINANCIAL CONDITION - Allowance for Credit Losses" section below. Net gains and losses include gains and losses on investment securities, asset disposals and other transactions, which are included in total non-interest income on the Consolidated Statements of Operations. The net loss realized during the second quarter of 2026 was $8.6 million, compared to a net loss of $0.4 million for the linked quarter and a net loss of $0.3 million for the second quarter of 2025. The net loss for the second quarter of 2026 was driven by the sale of $135.2 million of available-for-sale securities at a net loss of $8.2 million as Peoples manages its balance sheet under $10 billion in assets ahead of the pending Citizens merger. The net losses for the first quarter of 2026 and for the second quarter of 2025 were due to losses on repossessed assets. For the six months ended June 30, 2026, the total net loss was $9.0 million, compared to $0.6 million for the same period in 2025. The net loss for the first six months of 2026 was primarily driven by the aforementioned investment portfolio restructure in the second quarter. The net loss recognized in the first six months of 2025 was primarily driven by $0.6 million of net losses on repossessed assets. Total non-interest income, excluding net gains and losses, for the second quarter of 2026 increased $0.3 million compared to the linked quarter. The increase in non-interest income, excluding net gains and losses, was primarily impacted by increases of $0.6 million in electronic banking income, driven by debit card interchange, $0.4 million in lease income, driven by an increase in month-to-month income, $0.4 million in trust and investment income, and $0.2 million in mortgage banking income. Partially offsetting those increases was a decrease of $1.2 million in insurance income due to performance-based commissions recognized in the first quarter of each year. Compared to the second quarter of 2025, total non-interest income, excluding net gains and losses, increased $1.8 million, due to increases of $0.8 million in lease income, driven by higher operating lease income, $0.7 million in trust and investment income, driven by an increase in assets under administration and management, $0.4 million in deposit account services charges, and $0.4 million in mortgage banking income, partially offset by a decrease of $0.6 million in other non-interest income, driven by lower swap fee income. For the first six months of 2026, total non-interest income, excluding gains and losses, increased $3.0 million, or 6%, compared to the first six months of 2025. The increase was primarily due to increases of $1.9 million in lease income, driven by operating lease income, $1.2 million in trust and investment income, driven by an increase in assets under administration and management, and $0.7 45 Table of Contents million in deposit account service charges, partially offset by a decrease of $0.8 million in other non-interest income, driven by lower swap fee income. Total non-interest expense increased $1.1 million for the three months ended June 30, 2026, compared to the linked quarter. The increase was primarily due to increases of $1.3 million in professional fees, driven by higher legal expenses and professional services and $0.3 million in data processing and software expense, which were partially offset with a decrease of $0.5 million in net occupancy and equipment expense, driven by lower utility costs. Compared to the second quarter of 2025, total non-interest expense increased $2.4 million, or 3%. The increase in total non-interest expense was primarily driven by increases of $1.1 million in salaries and benefit costs due to higher sales levels and overall company performance measures used in calculating incentive awards, $0.7 million in operating lease expense, $0.5 million in data processing and software expense due to costs associated with recent technology projects, and $0.4 million in professional fees, partially offset by a decrease of $0.5 million in amortization of other intangible assets, driven by decreases in amortization on core deposits and customer relationship intangibles. For the six months ended June 30, 2026, total non-interest expense increased $3.2 million, or 2%, compared to the first six months of 2025. This increase was primarily driven by increases of $1.6 million in operating lease expense, $1.1 million in salaries and employee benefit costs due to annual merit increases and an increase in sales incentives, $1.0 million in data processing and software expenses, driven by recent technology projects, and $0.7 million in net occupancy and equipment expense, partially offset by a decrease of $1.0 million in amortization of other intangible assets, due to decreases in amortization on core deposits and customer relationship intangibles. 46 Table of Contents Three Months Ended Six Months Ended June 30, March 31, June 30, June 30, (Dollars in thousands) 2026 2026 2025 2026 2025 Non-interest expense: Salaries and employee benefit costs $ 40,012 $ 39,835 $ 38,893 $ 79,847 $ 78,714 Data processing and software expense 7,850 7,536 7,356 15,386 14,361 Net occupancy and equipment expense 5,765 6,224 5,690 11,989 11,302 Professional fees 4,018 2,753 3,610 6,771 6,697 Electronic banking expense 2,225 2,081 2,018 4,306 4,043 Operating lease expense 1,797 1,804 1,053 3,601 2,038 Amortization of other intangible assets 1,697 1,697 2,211 3,394 4,424 FDIC insurance premiums 1,370 1,410 1,251 2,780 2,502 Other loan expenses 1,278 1,123 1,213 2,401 2,332 Franchise tax expense 972 1,004 678 1,976 1,607 Travel and entertainment expense 726 583 713 1,309 1,213 Communication expense 605 589 712 1,194 1,446 Marketing expense 604 886 718 1,490 1,621 Other non-interest expense 3,840 4,110 4,246 7,950 8,849 Total non-interest expense 72,759 71,635 70,362 144,394 141,149 Acquisition-related non-interest expense: Net occupancy and equipment expense — 1 — 1 — Professional fees 338 15 — 353 — Marketing expense 52 — — 52 — Travel and entertainment expense 10 — — 10 — Other non-interest expense 10 — — 10 — Total acquisition-related non-interest expense 410 16 — 426 — Non-interest expense excluding acquisition-related expense: Salaries and employee benefit costs 40,012 39,835 38,893 79,847 78,714 Data processing and software expense 7,850 7,536 7,356 15,386 14,361 Net occupancy and equipment expense 5,765 6,223 5,690 11,988 11,302 Professional fees 3,680 2,738 3,610 6,418 6,697 Electronic banking expense 2,225 2,081 2,018 4,306 4,043 Operating lease expense 1,797 1,804 1,053 3,601 2,038 Amortization of other intangible assets 1,697 1,697 2,211 3,394 4,424 FDIC insurance premiums 1,370 1,410 1,251 2,780 2,502 Other loan expenses 1,278 1,123 1,213 2,401 2,332 Franchise tax expense 972 1,004 678 1,976 1,607 Travel and entertainment expense 716 583 713 1,299 1,213 Communication expense 605 589 712 1,194 1,446 Marketing expense 552 886 718 1,438 1,621 Other non-interest expense 3,830 4,110 4,246 7,940 8,849 Total non-interest expense excluding acquisition-related expense $ 72,349 $ 71,619 $ 70,362 $ 143,968 $ 141,149 The efficiency ratio for the second quarter of 2026 was 58.3%, compared to 58.6% for the linked quarter and 59.3% for the second quarter of 2025. The efficiency ratio improved slightly compared to the linked quarter mainly as the result of higher net interest income, driven by a reduction in deposit costs. The efficiency ratio for the first six months of 2026 was 58.4%, compared to 60.0% for the first six months of 2025. The efficiency ratio improved compared to the prior year first six months due to higher revenue. The efficiency ratio adjusted for non-core items was 57.9% for the second quarter of 2026, compared to 58.6% for the linked quarter. 47 Table of Contents Peoples recorded income tax expense of $7.7 million with an effective tax rate of 21.6% for the second quarter of 2026, compared to income tax expense of $8.3 million with an effective tax rate of 22.3% for the linked quarter, and income tax expense of $6.2 million with an effective tax rate of 22.7% for the second quarter of 2025. The decreases in income tax expense and the effective tax rate when compared to the linked quarter were impacted by a $0.5 million benefit relating to tax credit purchased in the second quarter of 2026. Peoples' income tax expense for the first six months of 2026 was $16.0 million with an effective tax rate of 22.0%, compared to $13.3 million with an effective tax rate of 22.6% for the same period of 2025. The increase in income tax expense when compared to June 30, 2025, was driven by higher pretax income. The decrease in the effective tax rate when compared to June 30, 2025, was driven by the $0.5 million benefit relating to tax credits purchased in the second quarter of 2026. Total assets were $9.54 billion as of June 30, 2026, $9.65 billion at March 31, 2026, $9.65 billion at December 31, 2025, and $9.54 billion at June 30, 2025. Total assets at June 30, 2026 decreased when compared to at March 31, 2026 primarily due to a decrease of $144.0 million in total investment securities, partially offset by an increase of $51.4 million in period end total loans and leases, compared to at March 31, 2026. Total assets at June 30, 2026 decreased compared to at December 31, 2025 due to a decrease of $158.4 million in total investment securities, partially offset by an increase of $62.2 million in total loans and leases. Total assets at June 30, 2026 decreased slightly compared to at June 30, 2025 due to decreases of $201.6 million in total investment securities and $6.4 million in total cash and cash equivalents, partially offset by an increase of $216.6 million in total loans and leases. The decrease in investment securities to all prior periods was driven by the sale of $135.2 million in available-for-sale securities as part of a portfolio restructure in advance of the pending Citizens Merger. Total liabilities were $8.30 billion at June 30, 2026, down from $8.43 billion at March 31, 2026, $8.44 billion at December 31, 2025, and $8.39 billion at June 30, 2025. The decrease in total liabilities when compared to at March 31, 2026 was primarily due to a decrease of $192.1 million in period-end total deposits, partially offset by an increase of $82.8 million in short-term borrowings. Total liabilities decreased compared to at December 31, 2025 due to a decrease of $153.9 million in period end deposits. The decrease was driven by decreases in brokered deposits and retail certificate of deposits, partially offset by increases in money market deposit accounts and non-interest bearing deposits. The decrease in total liabilities when compared to at June 30, 2025 was primarily due to decreases of $180.8 million and $76.1 million in period-end deposits and long-term borrowings, respectively, partially offset by an increase of $191.8 million in short-term borrowings. The decrease in total deposits was primarily driven by a decrease of $217.2 million in brokered deposits and $129.3 million in retail certificates of deposit, partially offset by increases of $67.9 million in money market deposit accounts, $63.0 million in non-interest bearing deposits, $36.0 million in interest-bearing demand accounts, and $25.6 million in savings accounts. Total stockholders' equity at June 30, 2026 increased $20.5 million compared to at March 31, 2026, which was primarily due to net income for the quarter of $28.0 million and a decrease of $5.2 million in accumulated other comprehensive loss, partially offset by dividends paid of $15.1 million. Accumulated unrealized losses related to the available-for-sale investment securities portfolio were $71.2 million and $76.4 million at June 30, 2026 and at March 31, 2026, respectively. Total stockholders' equity at June 30, 2026 increased $29.9 million, or 2%, compared to at December 31, 2025, which was due to net income of $57.0 million in the first six months of 2026, partially offset by dividends paid of $29.8 million. Total stockholders' equity at June 30, 2026 increased by $83.2 million compared to at June 30, 2025 and was impacted by net income of $118.2 million in the last twelve months and a decrease in accumulated other comprehensive loss of $19.4 million, partially offset by dividends paid of $59.0 million. RESULTS OF OPERATIONS Net Interest Income Net interest income, the amount by which interest income exceeds interest expense, remains Peoples' largest source of revenue. The amount of net interest income earned by Peoples each quarter is affected by various factors, including changes in market interest rates due to the Federal Reserve’s monetary policy, the level and degree of pricing competition for loans and deposits in Peoples’ markets, and the amount and composition of Peoples' earning assets and interest-bearing liabilities. Net interest margin, which is calculated by dividing fully tax-equivalent ("FTE") net interest income by average interest-earning assets, serves as an important measurement of the net revenue stream generated by the volume, mix and pricing of interest-earning assets and interest-bearing liabilities. FTE net interest income is calculated by increasing interest income to convert tax-exempt income earned on obligations of states and political subdivisions and tax-exempt loans to the pre-tax equivalent of taxable income using a federal statutory corporate income tax rate of 21% for all periods presented. 48 Table of Contents The following table details the calculation of FTE net interest income: Three Months Ended Six Months Ended June 30, 2026 March 31, 2026 June 30, 2025 June 30, (Dollars in thousands) 2026 2025 Net interest income $ 92,728 $ 90,420 $ 87,577 $ 183,148 $ 172,832 Taxable equivalent adjustment 221 245 280 466 563 FTE net interest income $ 92,949 $ 90,665 $ 87,857 $ 183,614 $ 173,395 49 Table of Contents The following tables detail Peoples’ average balance sheets for the periods presented: For the Three Months Ended June 30, 2026 March 31, 2026 June 30, 2025 ( Dollars in thousands) Average Balance Income/ Expense Yield/Cost Average Balance Income/ Expense Yield/Cost Average Balance Income/ Expense Yield/Cost Short-term investments $ 112,726 $ 1,084 3.86 % $ 82,872 $ 790 3.87 % $ 86,655 $ 1,039 4.81 % Investment securities (a)(b): Taxable 1,752,776 16,208 3.70 % 1,807,384 16,526 3.66 % 1,734,193 15,593 3.60 % Nontaxable 135,132 925 2.74 % 154,566 1,032 2.67 % 176,691 1,215 2.75 % Total investment securities 1,887,908 17,133 3.63 % 1,961,950 17,558 3.58 % 1,910,884 16,808 3.52 % Loans (b)(c): Construction 282,906 4,989 6.98 % 289,892 4,586 6.33 % 335,396 5,935 7.00 % Commercial real estate, other 2,205,065 33,969 6.09 % 2,251,931 34,658 6.16 % 2,110,961 33,430 6.27 % Commercial and industrial 1,652,813 25,826 6.18 % 1,554,825 25,110 6.46 % 1,325,976 23,304 6.95 % Premium finance 243,558 5,154 8.37 % 238,918 4,553 7.62 % 267,294 5,743 8.50 % Leases 352,662 8,180 9.18 % 355,857 8,578 9.64 % 384,191 10,287 10.59 % Residential real estate (d) 943,268 12,927 5.48 % 958,354 13,049 5.45 % 974,203 12,226 5.02 % Home equity lines of credit 267,892 4,684 7.01 % 256,543 4,404 6.96 % 239,531 4,540 7.60 % Consumer, indirect 698,460 11,322 6.50 % 700,411 11,293 6.54 % 686,550 11,038 6.45 % Consumer, direct 127,928 2,533 7.94 % 128,423 2,487 7.85 % 119,358 2,337 7.85 % Total loans 6,774,552 109,584 6.42 % 6,735,154 108,718 6.47 % 6,443,460 108,840 6.71 % Allowance for credit losses (78,113) (75,284) (65,186) Net loans 6,696,439 109,584 6.50 % 6,659,870 108,718 6.54 % 6,378,274 108,840 6.77 % Total earning assets 8,697,073 127,801 5.84 % 8,704,692 127,066 5.85 % 8,375,813 126,687 6.01 % Goodwill and other intangible assets 390,753 392,490 398,940 Other assets 498,500 503,926 518,534 Total assets $ 9,586,326 $ 9,601,108 $ 9,293,287 Interest-bearing deposits: Savings accounts $ 917,693 $ 181 0.08 % $ 903,050 $ 183 0.08 % $ 889,877 $ 220 0.10 % Governmental deposit accounts 818,274 4,151 2.03 % 782,543 3,923 2.03 % 811,822 4,874 2.41 % Interest-bearing demand accounts 1,091,757 602 0.22 % 1,055,685 572 0.22 % 1,075,220 563 0.21 % Money market accounts 970,487 4,977 2.06 % 925,668 4,541 1.99 % 938,318 5,592 2.39 % Retail CDs 1,917,698 15,357 3.21 % 1,973,029 16,458 3.38 % 1,997,992 18,235 3.66 % Brokered CDs (e) 237,556 2,382 4.02 % 301,470 2,954 3.97 % 419,277 4,393 4.20 % Total interest-bearing deposits 5,953,465 27,650 1.86 % 5,941,445 28,631 1.95 % 6,132,506 33,877 2.22 % Borrowed funds: Short-term FHLB advances (e) 430,758 4,050 3.77 % 368,289 3,382 3.72 % 87,659 1,015 4.64 % Repurchase agreements and other 64,173 573 3.57 % 182,081 1,577 3.46 % 40,057 374 3.73 % Total short-term borrowings 494,931 4,623 3.74 % 550,370 4,959 3.64 % 127,716 1,389 4.36 % Long-term FHLB advances 107,495 1,079 4.02 % 117,467 1,155 3.99 % 131,625 1,315 4.01 % Long-term notes payable 42,443 758 7.14 % 41,628 747 7.18 % 47,116 856 7.27 % Other long-term borrowings (f) 32,094 742 9.15 % 31,839 909 11.42 % 55,257 1,393 9.97 % Total long-term borrowings 182,032 2,579 5.66 % 190,934 2,811 5.92 % 233,998 3,564 6.07 % Total borrowed funds 676,963 7,202 4.26 % 741,304 7,770 4.23 % 361,714 4,953 5.47 % Total interest-bearing liabilities 6,630,428 34,852 2.11 % 6,682,749 36,401 2.21 % 6,494,220 38,830 2.40 % Non-interest-bearing deposits 1,631,305 1,604,708 1,546,475 Other liabilities 96,401 95,283 105,339 Total liabilities 8,358,134 8,382,740 8,146,034 Total stockholders’ equity 1,228,192 1,218,368 1,147,253 Total liabilities and stockholders’ equity $ 9,586,326 $ 9,601,108 $ 9,293,287 Interest rate spread (b) $ 92,949 3.73 % $ 90,665 3.64 % $ 87,857 3.61 % Net interest margin (b) 4.23 % 4.16 % 4.15 % 50 Table of Contents For the Six Months Ended June 30, 2026 June 30, 2025 ( Dollars in thousands) Average Balance Income/ Expense Yield/Cost Average Balance Income/ Expense Yield/Cost Short-term investments $ 97,882 $ 1,874 3.86 % $ 87,780 $ 1,938 4.45 % Investment securities (a)(b): Taxable 1,779,929 32,734 3.68 % 1,726,366 30,965 3.59 % Nontaxable 144,795 1,957 2.70 % 177,631 2,441 2.75 % Total investment securities 1,924,724 34,691 3.61 % 1,903,997 33,406 3.51 % Loans (b)(c): Construction 286,380 9,574 6.65 % 324,325 11,507 7.06 % Commercial real estate, other 2,228,369 68,630 6.13 % 2,090,163 66,693 6.35 % Commercial and industrial 1,604,089 50,936 6.32 % 1,331,026 46,635 6.97 % Premium finance 241,251 9,706 8.00 % 263,290 11,328 8.56 % Leases 354,251 16,758 9.41 % 389,646 20,485 10.46 % Residential real estate (d) 950,769 25,975 5.46 % 965,176 24,440 5.06 % Home equity lines of credit 262,249 9,088 6.99 % 236,543 8,922 7.61 % Consumer, indirect 699,430 22,615 6.52 % 680,415 21,586 6.40 % Consumer, direct 128,174 5,020 7.90 % 118,623 4,572 7.77 % Total loans 6,754,962 218,302 6.45 % 6,399,207 216,168 6.74 % Allowance for credit losses (76,706) (64,129) Net loans 6,678,256 218,302 6.52 % 6,335,078 216,168 6.81 % Total earning assets 8,700,862 254,867 5.85 % 8,326,855 251,512 6.03 % Goodwill and other intangible assets 391,617 400,135 Other assets 501,197 517,505 Total assets $ 9,593,676 $ 9,244,495 Interest-bearing deposits: Savings accounts $ 910,412 $ 365 0.08 % $ 884,282 $ 437 0.10 % Governmental deposit accounts 800,507 8,074 2.03 % 796,885 9,526 2.41 % Interest-bearing demand accounts 1,073,821 1,175 0.22 % 1,079,921 1,086 0.20 % Money market accounts 948,201 9,518 2.02 % 926,264 10,884 2.37 % Retail CDs 1,945,210 31,814 3.30 % 1,968,840 36,669 3.76 % Brokered CDs (e) 269,336 5,335 3.99 % 491,567 10,440 4.28 % Total interest-bearing deposits 5,947,487 56,281 1.91 % 6,147,759 69,042 2.26 % Borrowed funds: Short-term FHLB advances (e) 399,696 7,432 3.75 % 60,392 1,357 4.53 % Repurchase agreements and other 122,801 2,150 3.50 % 31,944 539 3.37 % Total short-term borrowings 522,497 9,582 3.69 % 92,336 1,896 4.13 % Long-term FHLB advances 112,454 2,234 4.00 % 131,697 2,617 4.01 % Long-term notes payable 42,038 1,505 7.16 % 48,720 1,750 7.18 % Other long-term borrowings (f) 31,967 1,651 10.27 % 55,125 2,812 10.15 % Total long-term borrowings 186,459 5,390 5.79 % 235,542 7,179 6.10 % Total borrowed funds 708,956 14,972 4.24 % 327,878 9,075 5.55 % Total interest-bearing liabilities 6,656,443 71,253 2.16 % 6,475,637 78,117 2.43 % Non-interest-bearing deposits 1,618,080 1,522,851 Other liabilities 95,846 110,883 Total liabilities 8,370,369 8,109,371 Total stockholders’ equity 1,223,307 1,135,124 Total liabilities and stockholders’ equity $ 9,593,676 $ 9,244,495 Interest rate spread (b) $ 183,614 3.69 % $ 173,395 3.60 % Net interest margin (b) 4.20 % 4.14 % (a) Average balances are based on carrying value. (b) Interest income and yields are presented on a fully tax-equivalent basis, using a 21% statutory federal corporate income tax rate. (c) Average balances include nonaccrual and impaired loans. Interest income includes interest earned and received on nonaccrual loans prior to the loans being placed on nonaccrual status. Loan fees included in interest income were immaterial for all periods presented. 51 Table of Contents (d) Loans held for sale are included in the average loan balance listed. Related interest income on loans originated for sale prior to the loan being sold is included in loan interest income. (e) Interest related to interest rate swap transactions is included, as appropriate to the transaction, in interest expense on short-term FHLB advances and interest expense on brokered CDs for the periods presented in which interest payments on FHLB advances or brokered CDs were being hedged. (f) Included in other long-term borrowings are trust preferred securities and floating rate junior subordinated deferrable interest debentures. The following table provides an analysis of the changes in FTE net interest income: Three Months Ended June 30, 2026 Compared to Six Months Ended June 30, 2026 Compared to (Dollars in thousands) March 31, 2026 June 30, 2025 June 30, 2025 Increase (decrease) in: Rate Volume Total (a) Rate Volume Total (a) Rate Volume Total (a) INTEREST INCOME: Short-term investments $ (7) $ 301 $ 294 $ (273) $ 318 $ 45 $ (290) $ 226 $ (64) Investment Securities (b): Taxable 298 (616) (318) 28 587 615 (306) 2,075 1,769 Nontaxable 28 (135) (107) 8 (298) (290) (16) (468) (484) Total investment income 326 (751) (425) 36 289 325 (322) 1,607 1,285 Loans (b) : Construction 464 (61) 403 (17) (929) (946) (587) (1,346) (1,933) Commercial real estate, other (345) (344) (689) (952) 1,491 539 (2,474) 4,411 1,937 Commercial and industrial (1,163) 1,879 716 (3,222) 5,744 2,522 (5,267) 9,568 4,301 Premium finance 461 140 601 (79) (510) (589) (674) (948) (1,622) Leases (285) (113) (398) (736) (1,371) (2,107) (811) (2,916) (3,727) Residential real estate 88 (210) (122) 1,120 (419) 701 1,953 (418) 1,535 Home equity lines of credit 34 246 280 (394) 538 144 (804) 970 166 Consumer, indirect (65) 94 29 93 191 284 426 603 1,029 Consumer, direct 28 18 46 28 168 196 80 368 448 Total loan income (783) 1,649 866 (4,159) 4,903 744 (8,158) 10,292 2,134 Total interest income $ (464) $ 1,199 $ 735 $ (4,396) $ 5,510 $ 1,114 $ (8,770) $ 12,125 $ 3,355 INTEREST EXPENSE: Deposits: Savings accounts 7 (5) 2 46 (7) 39 85 (13) 72 Interest-bearing demand accounts (4) (26) (30) (30) (9) (39) (95) 6 (89) Money market accounts (163) (273) (436) 807 (192) 615 1,624 (258) 1,366 Governmental deposit accounts (3) (225) (228) 762 (39) 723 1,495 (43) 1,452 Retail CDs 816 285 1,101 2,144 734 2,878 4,414 441 4,855 Brokered CDs (28) 600 572 107 1,904 2,011 385 4,720 5,105 Total deposit cost 625 356 981 3,836 2,391 6,227 7,908 4,853 12,761 Borrowed funds: Short-term borrowings (121) 457 336 1,066 (4,300) (3,234) 2,260 (9,946) (7,686) Long-term borrowings 179 53 232 76 909 985 (14) 1,803 1,789 Total borrowed funds cost 58 510 568 1,142 (3,391) (2,249) 2,246 (8,143) (5,897) Total interest expense 683 866 1,549 4,978 (1,000) 3,978 10,154 (3,290) 6,864 FTE net interest income $ 219 $ 2,065 $ 2,284 $ 582 $ 4,510 $ 5,092 $ 1,384 $ 8,835 $ 10,219 (a) The change in interest due to both rate and volume has been allocated to rate and volume changes in proportion to the relationship of the dollar amounts of the change in each. (b) Interest income and yields are presented on a fully tax-equivalent basis, using a 21% statutory federal corporate income tax rate. Net interest income was $92.7 million for the second quarter of 2026 and increased $2.3 million when compared to the linked quarter. Net interest margin was 4.23% for the second quarter of 2026, compared to 4.16% for the linked quarter. The increase in net interest income and margin was primarily driven by a reduction in deposit costs. Net interest income for the second quarter of 2026 increased $5.2 million, or 6%, compared to the second quarter of 2025. Net interest margin increased 8 basis points when compared to the second quarter of 2025. The increase in net interest income was primarily driven by lower deposit and borrowing costs. 52 Table of Contents For the first six months of 2026, net interest income increased $10.3 million compared to the first six months of 2025, while net interest margin increased 6 basis points to 4.20%. The increases in net interest income and net interest margin was driven by lower deposit costs and increased interest income, respectively. Accretion income, net of amortization expense, was $1.1 million for the second quarter of 2026, $1.3 million for the linked quarter and $2.6 million for the second quarter of 2025, which added 5 basis points, 6 basis points and 12 basis points, respectively, to net interest margin. The decrease in accretion income for the second quarter of 2026 when compared to the linked quarter and the second quarter of 2025 was driven by less accretion income recognized from the Limestone Merger. Accretion income, net of amortization expense, was $2.4 million and $6.1 million for the first six months of 2026 and 2025, respectively. Accretion income added 6 basis points and 15 basis points to net interest margin for the first six months of 2026 and 2025, respectively. The decrease in accretion income for the first six months of 2026 compared to the same period in 2025 was due to less accretion income recognized from the Limestone Merger. Additional information regarding changes in the Unaudited Consolidated Balance Sheets can be found under appropriate captions of the “FINANCIAL CONDITION” section of this MD&A. Additional information regarding Peoples' interest rate risk and the potential impact of interest rate changes on Peoples' results of operations and financial condition can be found later in this MD&A under the caption "FINANCIAL CONDITION - Interest Rate Sensitivity and Liquidity." Provision for Credit Losses The following table details Peoples’ provision for credit losses: Three Months Ended Six Months Ended June 30, 2026 March 31, 2026 June 30, 2025 June 30, (Dollars in thousands) 2026 2025 Provision for other credit losses $ 4,477 $ 9,415 $ 16,475 $ 13,892 $ 26,510 Provision for checking account overdraft credit losses 232 279 167 511 322 Provision for credit losses $ 4,709 $ 9,694 $ 16,642 $ 14,403 $ 26,832 The provision for credit losses recorded represents the amount needed to maintain the appropriate level of the allowance for credit losses based on management’s quarterly estimates. The provision for credit losses for the second quarter of 2026 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. The provision for credit losses for the linked quarter was primarily driven by net charge-offs and a deterioration in the economic forecasts used within the CECL model. The provision for credit losses for the second quarter of 2025 was primarily 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. For the first half of 2026, the provision for credit losses was mainly a result of net charge-offs, a deterioration in the economic forecasts used within the CECL model, and an increase in individually-analyzed loans. For the same period of 2025, the provision for credit losses was mainly a result of (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. Additional information regarding changes in the allowance for credit losses and loan credit quality can be found later in this MD&A under the caption “FINANCIAL CONDITION - Allowance for Credit Losses.” 53 Table of Contents Net Gain (Loss) Included in Total Non-Interest Income Net gain (loss) includes net gains and losses on investment securities, asset disposals and other transactions, which are recognized in total non-interest income. The following table details Peoples’ net losses for the periods presented: Three Months Ended Six Months Ended June 30, 2026 March 31, 2026 June 30, 2025 June 30, (Dollars in thousands) 2026 2025 Net loss on investment securities $ (8,181) $ — $ — $ (8,181) $ (2) Net loss on asset disposals and other transactions: Net loss on other assets (453) (384) (267) (837) (597) Net gain (loss) on OREO — (26) 10 (26) 30 Net gain (loss) on other transactions 7 — (23) 7 (74) Net loss on asset disposals and other transactions $ (446) $ (410) $ (280) $ (856) $ (641) The net loss on investment securities for the second quarter of 2026 was driven by the sale of $135.2 million available-for-sale investment securities. The net loss on other assets for all periods presented was driven by losses recorded on repossessed assets. Total Non-Interest Income, Excluding Net Gains and Losses Total non-interest income, excluding net gains and losses, comprised 24% of Peoples' total revenues (defined as net interest income plus total non-interest income excluding net gains and losses) for the second quarter of 2026, 24% for the linked quarter, and 24% for the second quarter of 2025. For the first six months of 2026, total non-interest income, excluding net gains and losses, totaled 24% of total revenue, consistent with the same period in 2025. For the second quarter of 2026, e-banking income comprised the largest portion of Peoples' total non-interest income, excluding net gains and losses. Peoples' e-banking services include ATM and debit cards, direct deposit services, internet and mobile banking, and remote deposit capture, and serve as alternative delivery channels to traditional sales offices for providing services to customers. The following table details Peoples' e-banking income: Three Months Ended Six Months Ended June 30, 2026 March 31, 2026 June 30, 2025 June 30, (Dollars in thousands) 2026 2025 E-banking income $ 6,543 $ 5,927 $ 6,272 $ 12,470 $ 12,157 Peoples' e-banking income is derived largely from ATM and debit cards, as other services are mainly provided at no charge to customers. The amount of e-banking income is largely dependent on the timing and volume of customer activity. The following table details Peoples' insurance income: Three Months Ended Six Months Ended June 30, 2026 March 31, 2026 June 30, 2025 June 30, (Dollars in thousands) 2026 2025 Property and casualty insurance commissions $ 3,670 $ 3,679 $ 3,791 $ 7,349 $ 7,614 Performance-based commissions 18 1,204 99 1,222 1,641 Life and health insurance commissions 643 697 659 1,340 1,348 Insurance income $ 4,331 $ 5,580 $ 4,549 $ 9,911 $ 10,603 Peoples' insurance income for the second quarter of 2026 decreased when compared to the linked quarter which was driven by the annual performance-based commissions recognized in the first quarter of each year. Insurance income for the second quarter and first six months of 2026 decreased when compared to the same periods of 2025 due to lower performance-based commissions. Peoples' trust and investment income, which includes fiduciary income, brokerage income, and employee benefit fees, continued to be based primarily upon the value of assets under administration and management, with additional income generated from transaction commissions, cross-selling of products and additional retirement plan services business. The following table details Peoples’ trust and investment income: 54 Table of Contents Three Months Ended Six Months Ended June 30, 2026 March 31, 2026 June 30, 2025 June 30, (Dollars in thousands) 2026 2025 Fiduciary income $ 2,568 $ 2,282 $ 2,274 $ 4,850 $ 4,366 Brokerage income 2,603 2,529 2,240 5,132 4,386 Employee benefit fees 815 794 767 1,609 1,590 Trust and investment income $ 5,986 $ 5,605 $ 5,281 $ 11,591 $ 10,342 Fiduciary income in the second quarter of 2026 increased when compared to the linked quarter and to the second quarter of 2025 and was driven by an increase in assets under administration and management. Trust and investment income increased $1.2 million for the first six months of 2026 when compared to 2025, due to higher brokerage income, primarily reflecting the increase in assets under management. The following table details Peoples' assets under administration and management: June 30, 2026 March 31, 2026 December 31, 2025 September 30, 2025 June 30, 2025 (Dollars in thousands) Trust $ 2,521,031 $ 2,178,467 $ 2,219,650 $ 2,271,536 $ 2,138,439 Brokerage $ 1,984,252 $ 1,844,940 $ 1,846,084 $ 1,800,781 $ 1,724,311 Total $ 4,505,283 $ 4,023,407 $ 4,065,734 $ 4,072,317 $ 3,862,750 Quarterly average $ 4,315,129 $ 4,091,841 $ 4,065,195 $ 3,955,007 $ 3,736,778 The increase in assets under administration and management at June 30, 2026 compared to at March 31, 2026 was driven by market value fluctuations. The increase in assets under administration and management at June 30, 2026 when compared to at June 30, 2025 was primarily due to growth, as Peoples added new accounts and the underlying market values of assets under management grew. Deposit account service charges are based on the recovery of costs associated with services provided. The following table details Peoples' deposit account service charges: Three Months Ended Six Months Ended June 30, 2026 March 31, 2026 June 30, 2025 June 30, (Dollars in thousands) 2026 2025 Overdraft and non-sufficient funds fees $ 2,275 $ 2,210 $ 2,122 $ 4,485 $ 4,225 Account maintenance fees 1,928 1,881 1,669 3,809 3,313 Other fees and charges 285 176 268 461 536 Deposit account service charges $ 4,488 $ 4,267 $ 4,059 $ 8,755 $ 8,074 The amount of deposit account service charges, particularly fees for overdrafts and non-sufficient funds, is largely dependent on the timing and volume of customer activity. Management periodically evaluates its cost recovery fees to ensure they are reasonable based on operational costs and similar to fees charged in Peoples' markets by competitors. Deposit account service charges increased for the second quarter of 2026 compared to both the linked quarter and second quarter of 2025. For the first six months of 2026, total deposit account service charges increased by $0.7 million from the same period of 2025, driven by timing of customer activity. The following table details the other items included within Peoples' total non-interest income: Three Months Ended Six Months Ended June 30, 2026 March 31, 2026 June 30, 2025 June 30, (Dollars in thousands) 2026 2025 Lease income 4,977 4,581 4,211 9,558 7,679 Bank owned life insurance income 1,189 1,162 1,112 2,351 2,245 Other non-interest income 893 1,166 1,456 2,059 2,906 Mortgage banking income 598 376 220 974 616 Lease income is primarily comprised of (i) operating lease income, (ii) gains on the early termination of leases, net of any associated purchase accounting adjustments, (iii) month-to-month lease payments beyond maturity of the net investment in the lease, net of any associated purchase accounting adjustment, (iv) fees received for referrals, (v) gains and losses recognized on the sales of residual assets, net of any purchase accounting impact, and (vi) syndication income. Lease income for the second quarter of 2026 55 Table of Contents increased compared to the linked quarter due to an increase in month-to-month lease income. The increase when compared to the second quarter of 2025 was driven by an increase in operating lease income, partially offset by a reduction in gains on terminated leases. Lease income increased $1.9 million for the first six months of 2026 when compared to the same period of 2025 due to an increase in operating lease income. BOLI income for the second quarter of 2026 remained flat when compared to the linked quarter and to the prior year quarter. BOLI income increased slightly for the first six months of 2026 when compared to the same period of 2025 primarily due to changes in the cash surrender value of the underlying policies. Other non-interest income decreased for the three months ended June 30, 2026 when compared to the linked quarter and when compared to the second quarter of 2025. For the first six months of 2026, other non-interest income decreased by $0.8 million from the same period of 2025, primarily due to a decrease in swap fee income which is driven by customer demand. Mortgage banking income is comprised mostly of net gains from the origination and sale of real estate loans in the secondary market, and, to a lesser extent, servicing income for loans sold with servicing retained. As a result, the amount of income recognized by Peoples is largely dependent on customer demand and long-term interest rates for residential real estate loans offered in the secondary market. Mortgage banking income for the second quarter of 2026 increased when compared to the linked quarter and the second quarter of 2025 and was primarily driven by the increased volume in loans sold. Mortgage banking income increased for the first six months of 2026 when compared to the same period of 2025 due to higher production. In the second quarter of 2026, Peoples sold $15.1 million in loans into the secondary market with servicing retained and $6.6 million in loans with servicing released, compared to $6.0 million and $3.6 million, respectively, in the first quarter of 2026, and $0.3 million and $10.3 million, respectively, in the second quarter of 2025. For the first six months of 2026, Peoples sold $20.9 million in loans into the secondary market with servicing retained, and $10.2 million with servicing released, compared to $0.5 million and $10.3 million, respectively, for the same period of 2025. Non-Interest Expense Salaries and employee benefit costs remain Peoples' largest non-interest expense, accounting for over one-half of total non-interest expense. The following table details Peoples' salaries and employee benefit costs: Three Months Ended Six Months Ended June 30, 2026 March 31, 2026 June 30, 2025 June 30, (Dollars in thousands) 2026 2025 Base salaries and wages $ 25,311 $ 25,447 $ 24,942 $ 50,758 $ 49,560 Sales-based and incentive compensation 7,544 5,415 6,181 12,959 12,672 Employee benefits 4,958 5,606 5,692 10,564 10,214 Payroll taxes and other employment costs 2,146 2,659 2,078 4,805 4,857 Stock-based compensation 1,531 1,904 1,484 3,435 3,959 Deferred personnel costs (1,478) (1,196) (1,484) (2,674) (2,548) Salaries and employee benefit costs $ 40,012 $ 39,835 $ 38,893 $ 79,847 $ 78,714 Full-time equivalent employees: Actual at end of period 1,443 1,458 1,477 1,443 1,477 Average during the period 1,447 1,457 1,462 1,454 1,478 Base salaries and wages for the second quarter of 2026 and the first six months of 2026 increased compared to the same periods in 2025, primarily driven by annual merit increases. Sales-based and incentive compensation increased for the second quarter of 2026 compared to both the linked quarter and the second quarter of 2025 and was driven by an increase in corporate incentives. Sales-based and incentive compensation increased for the first six months of 2026 when compared to same period in 2025, due to an increase in corporate incentives. The decrease in employee benefits for the second quarter of 2026 compared to the linked quarter and second quarter of 2025 was primarily related to lower medical costs. Employee benefits increased for the first six months of 2026 when compared to the same period for 2025 due to an adjustment related to prior period nonqualified deferred compensation expense. Payroll taxes and other employment costs for the second quarter of 2026 decreased when compared to the linked quarter due to seasonal expenses recognized in the first quarter of each year. Payroll taxes and other employment costs increased when compared to the second quarter of 2025, primarily driven by higher base salaries due to annual merit increases. For the first six months of 2026, payroll taxes and other employment costs decreased slightly compared to the same period of 2025. 56 Table of Contents Stock-based compensation is generally recognized over the vesting period, which generally ranges from immediate vesting to vesting at the end of three years. Peoples estimates forfeitures at the grant date and revises those estimates in the subsequent periods if actual forfeitures differ from previous estimates. Stock grants to retirement eligible grantees are expensed either immediately or over a shorter period than three years. The majority of Peoples' stock-based compensation is attributable to annual equity-based incentive awards to employees, which are awarded in the first quarter of each year based upon Peoples achieving certain performance goals during the prior year, and are generally contingent on employment through the vesting period. Stock-based compensation for the second quarter of 2026 decreased when compared to the linked quarter due to the expense attributable to the forfeiture rate true-up on stock vested coupled with up-front expense on stock grants to certain retirement-eligible employees recognized in the linked quarter. Stock-based compensation for the first six months of 2026 decreased when compared to the first six months of 2025 due to less up-front expense on grants to certain retirement-eligible employees. Deferred personnel costs represent the portion of current period salaries and employee benefit costs considered to be direct loan origination costs. These costs are capitalized and recognized over the life of the loan as a yield adjustment in interest income. As a result, the amount of deferred personnel costs for each period corresponds directly with the volume of loan originations, coupled with the average deferred costs per loan that are updated annually at the beginning of each year. Deferred personnel costs for the second quarter of 2026 increased when compared to the first quarter of 2026 and was consistent with the second quarter of 2025. Similarly, deferred personnel costs increased for the first six months of 2026 when compared to the first six months of 2025. Peoples' net occupancy and equipment expense was comprised of the following: Three Months Ended Six Months Ended June 30, 2026 March 31, 2026 June 30, 2025 June 30, (Dollars in thousands) 2026 2025 Depreciation $ 2,116 $ 2,142 $ 2,135 $ 4,258 $ 4,259 Repairs and maintenance costs 1,538 1,794 1,641 3,332 3,565 Property taxes, utilities and other costs 1,155 1,365 1,115 2,520 1,661 Net rent expense 956 923 799 1,879 1,817 Net occupancy and equipment expense $ 5,765 $ 6,224 $ 5,690 $ 11,989 $ 11,302 Net occupancy and equipment expense decreased for the second quarter of 2026 compared to the linked quarter due to lower repair and maintenance costs. Net occupancy and equipment expense for the first six months of 2026 increased when compared to the same period of the previous year due to an adjustment of property tax accruals resulting from a review of recent assessments. The following table details the other items included in total non-interest expense: Three Months Ended Six Months Ended June 30, 2026 March 31, 2026 June 30, 2025 June 30, (Dollars in thousands) 2026 2025 Data processing and software expense $ 7,850 $ 7,536 $ 7,356 $ 15,386 $ 14,361 Professional fees 4,018 2,753 3,610 6,771 6,697 E-banking expense 2,225 2,081 2,018 4,306 4,043 Operating lease expense 1,797 1,804 1,053 3,601 2,038 Amortization of other intangible assets 1,697 1,697 2,211 3,394 4,424 FDIC insurance premiums 1,370 1,410 1,251 2,780 2,502 Other loan expenses 1,278 1,123 1,213 2,401 2,332 Franchise tax expense 972 1,004 678 1,976 1,607 Travel and entertainment expense 726 583 713 1,309 1,213 Communication expense 605 589 712 1,194 1,446 Marketing expense 604 886 718 1,490 1,621 Other non-interest expense $ 3,840 $ 4,110 $ 4,246 $ 7,950 $ 8,849 Data processing and software expenses for the second quarter and the first six months of 2026 increased compared to the linked quarter and the same periods in 2025 due to costs associated with recent ongoing technology projects. Professional fees for the second quarter of 2026 increased when compared to the linked quarter due to higher legal expenses and professional services. Professional fees increased for the first six months of 2026 when compared to the same period in 2025 due to increased legal expenses. 57 Table of Contents Peoples' e-banking expense is comprised of costs associated with debit and ATM cards and is driven by the timing and volume of customer activity. E-banking expense for the second quarter and the first six months of 2026 increased when compared to the linked quarter and the same periods in 2025 due to customer activity. Operating lease expense remained flat when compared to the linked quarter. Operating lease expense increased for the second quarter and the first six months of 2026 when compared to the same periods in 2025 due to an increased volume of leases. Amortization of other intangible assets for the second quarter of 2026 remained flat compared to the linked quarter and decreased $0.5 million compared to the prior year quarter due to decreases in amortization on core deposits and customer relationship intangibles. Amortization of other intangible assets decreased for the first six months of 2026 when compared to 2025 due to decreases in amortization on core deposits and customer relationship intangibles. Peoples' FDIC insurance premiums for the second quarter of 2026 remained relatively flat when compared to the linked quarter and increased when compared to the second quarter of 2025. FDIC premiums increased for the first six months of 2026 when compared to 2025 driven by an increase in average assets. Other loan expenses during the second quarter of 2026 increased slightly when compared to the linked quarter and to the second quarter of 2025. Other loan expenses increased for the first six months of 2026 when compared to 2025 due to increased real estate loan expenses. Peoples is subject to state franchise taxes, which are based largely on Peoples' equity, in the states where Peoples has a physical presence. Franchise tax expense also includes the Ohio Financial Institution Tax ("FIT"), which is a business privilege tax that is imposed on financial institutions organized for profit and doing business in Ohio. The Ohio FIT is based on the total equity capital in proportion to the taxpayer's gross receipts in Ohio as of the most recent year-end. The increase in franchise tax expense for the second quarter of 2026 compared to the prior year quarter related to a one-time refund from the State of Ohio received in 2025. Franchise tax expense increased slightly for the first six months of 2026 when compared to 2025. Travel and entertainment expenses increased compared to the linked quarter and to the second quarter of 2025. Travel and entertainment increased slightly for the first six months of 2026 when compared to 2025 due to timing of travel. Communication expense remained flat for the second quarter of 2026 when compared to the linked quarter and decreased when compared to the same period of the prior year. Communication expense decreased slightly for the first six months of 2026 when compared to 2025. Marketing expense for the second quarter of 2026 decreased when compared to the linked quarter and the second quarter of 2025 primarily driven by a vendor incentive received in the second quarter of 2026. Marketing expense decreased for the first six months of 2026 when compared to 2025 due to lower advertising expenses. Other non-interest expense for the second quarter of 2026 decreased when compared to the linked quarter primarily due to lower check and ACH fraud. Other non-interest expense decreased for the second quarter and the first six months of 2026 when compared to same periods in 2025 due to lower ACH fraud. Income Tax Expense Peoples recorded income tax expense of $7.7 million with an effective tax rate of 21.6% for the second quarter of 2026, compared to income tax expense of $8.3 million with an effective tax rate of 22.3% for the linked quarter and income tax expense of $6.2 million with an effective tax rate of 22.7% for the second quarter of 2025. The decreases in income tax expense and the effective tax rate when compared to the linked quarter were impacted by a $0.5 million benefit relating to a tax credit. The increase in income tax expense when compared to the second quarter of 2025 was driven by higher pre-tax income. Peoples recorded income tax expense of $16.0 million and $13.3 million, through the first six months of 2026 and 2025, respectively. The increase for the first six months of 2026 compared to 2025 was driven by higher pre-tax income. Additional information regarding income taxes can be found in "Note 13 Income Taxes" of the Notes to the Consolidated Financial Statements included in Peoples' 2025 Form 10-K. Pre-Provision Net Revenue (Non-US GAAP) Pre-provision net revenue ("PPNR") has become a key financial measure used by state and federal bank regulatory agencies when assessing the capital adequacy of financial institutions. PPNR is defined as net interest income plus total non-interest income, excluding all gains and losses, minus total non-interest expense. As a result, PPNR represents the earnings capacity that can be either retained in order to build capital or used to absorb unexpected losses and preserve existing capital. This measure represents a Non-US GAAP financial measure since it excludes the provision for (recovery of) credit losses and all gains and losses included in earnings. 58 Table of Contents The following table provides a reconciliation of this Non-US GAAP financial measure to the amounts reported in Peoples' Unaudited Condensed Consolidated Financial Statements for the periods presented: Three Months Ended Six Months Ended June 30, 2026 March 31, 2026 June 30, 2025 June 30, (Dollars in thousands) 2026 2025 Pre-provision net revenue: Income before income taxes $ 35,638 $ 37,345 $ 27,453 $ 72,983 $ 58,830 Add: provision for credit losses 4,709 9,694 16,642 14,403 26,832 Add: loss on OREO — 26 — 26 — Add: loss on investment securities 8,181 — — 8,181 2 Add: loss on other assets 453 384 267 837 597 Add: loss on other transactions (7) — 23 (7) 74 Less: gain on OREO — — 10 — 30 Pre-provision net revenue $ 48,974 $ 47,449 $ 44,375 $ 96,423 $ 86,305 The increase in the PPNR for the second quarter and the first six months of 2026 compared to all prior periods was driven by an increase in net interest income due to a reduction in deposit costs. Core Non-Interest Expense (Non-US GAAP) Core non-interest expense is a financial measure used to evaluate Peoples' recurring expense stream. This measure is Non-US GAAP since it excludes the impact of all acquisition-related expenses. The following table provides a reconciliation of this Non-US GAAP measure to the amounts reported in Peoples' Unaudited Condensed Consolidated Financial Statements for the periods presented: Three Months Ended Six Months Ended June 30, 2026 March 31, 2026 June 30, 2025 June 30, (Dollars in thousands) 2026 2025 Core non-interest expense: Total non-interest expense $ 72,759 $ 71,635 $ 70,362 $ 144,394 $ 141,149 Less: acquisition-related expenses 410 16 — 426 — Core non-interest expense $ 72,349 $ 71,619 $ 70,362 $ 143,968 $ 141,149 Efficiency Ratio (Non-US GAAP) The efficiency ratio is a key financial measure used to monitor performance. The efficiency ratio is calculated as total non-interest expense (less amortization of other intangible assets) as a percentage of FTE net interest income plus total non-interest income excluding net gains and losses. This measure is Non-US GAAP since it excludes amortization of other intangible assets and all gains and losses included in earnings, and uses FTE net interest income. 59 Table of Contents The following table provides a reconciliation of this Non-US GAAP financial measure to the amounts reported in Peoples' Unaudited Condensed Consolidated Financial Statements for the periods presented: Three Months Ended Six Months Ended June 30, 2026 March 31, 2026 June 30, 2025 June 30, (Dollars in thousands) 2026 2025 Efficiency ratio: Total non-interest expense $ 72,759 $ 71,635 $ 70,362 $ 144,394 $ 141,149 Less: amortization of other intangible assets 1,697 1,697 2,211 3,394 4,424 Adjusted total non-interest expense 71,062 69,938 68,151 141,000 136,725 Total non-interest income 20,378 28,254 26,880 48,632 53,979 Less: net loss on investment securities (8,181) — — (8,181) (2) Less: net loss on asset disposals and other transactions (446) (410) (280) (856) (641) Total non-interest income excluding net losses 29,005 28,664 27,160 57,669 54,622 Net interest income 92,728 90,420 87,577 183,148 172,832 Add: FTE adjustment (a) 221 245 280 466 563 Net interest income on an FTE basis 92,949 90,665 87,857 183,614 173,395 Adjusted revenue $ 121,954 $ 119,329 $ 115,017 $ 241,283 $ 228,017 Efficiency ratio 58.27 % 58.61 % 59.25 % 58.44 % 59.96 % Efficiency ratio adjusted for non-core items: Core non-interest expense $ 72,349 $ 71,619 $ 70,362 $ 143,968 $ 141,149 Less: amortization of other intangible assets 1,697 1,697 2,211 3,394 4,424 Adjusted core non-interest expense 70,652 69,922 68,151 140,574 136,725 Non-interest income excluding net losses 29,005 28,664 27,160 57,669 54,622 Net interest income on an FTE basis 92,949 90,665 87,857 183,614 173,395 Adjusted revenue $ 121,954 $ 119,329 $ 115,017 $ 241,283 $ 228,017 Efficiency ratio adjusted for non-core items 57.93 % 58.60 % 59.25 % 58.26 % 59.96 % (a) Interest income and yields are presented on a fully tax-equivalent basis, using a 21% statutory federal corporate income tax rate. The efficiency ratio for the second quarter of 2026 was 58.3%, compared to 58.6% for the linked quarter and 59.3% for the second quarter of 2025. The efficiency ratio improved compared to the linked quarter mainly as the result of higher net interest income, driven by a reduction in deposit costs. The efficiency ratio improved compared to the prior year first six months due to lower borrowing costs. Peoples continues to focus on controlling expenses, while recognizing necessary costs in order to continue growing the business. Return on Average Assets Adjusted for Non-Core Items Ratio (Non-US GAAP) In addition to return on average assets, management uses return on average assets adjusted for non-core items to monitor performance. The return on average assets adjusted for non-core items ratio represents a Non-US GAAP financial measure since it excludes the after-tax impact of all gains and losses and acquisition-related expenses. 60 Table of Contents The following table provides a reconciliation of this Non-US GAAP financial measure to the amounts reported in Peoples' Unaudited Condensed Consolidated Financial Statements for the periods presented: Three Months Ended Six Months Ended June 30, 2026 March 31, 2026 June 30, 2025 June 30, (Dollars in thousands) 2026 2025 Annualized net income adjusted for non-core items: Net income $ 27,953 $ 29,006 $ 21,212 $ 56,959 $ 45,548 Add: net loss on investment securities 8,181 — — 8,181 2 Less: tax effect of net loss on investment securities (a) 1,718 — — 1,718 — Add: net loss on asset disposals and other transactions 446 410 280 856 641 Less: tax effect of net loss on asset disposals and other transactions (a) 94 86 59 180 135 Add: acquisition-related expenses 410 16 — 426 — Less: tax effect of acquisition-related expenses (a) 86 3 — 89 — Net income adjusted for non-core items (after tax) $ 35,092 $ 29,343 $ 21,433 $ 64,435 $ 46,056 Days in the period 91 90 91 181 181 Days in the year 365 365 365 365 365 Annualized net income $ 112,119 $ 117,635 $ 85,081 $ 114,862 $ 91,851 Annualized net income adjusted for non-core items (after tax) $ 140,754 $ 119,002 $ 85,968 $ 129,938 $ 92,875 Return on average assets: Annualized net income $ 112,119 $ 117,635 $ 85,081 $ 114,862 $ 91,851 Total average assets 9,586,326 9,601,108 9,293,287 9,593,676 9,244,495 Return on average assets 1.17 % 1.23 % 0.92 % 1.20 % 0.99 % Return on average assets adjusted for non-core items: Annualized net income adjusted for non-core items (after tax) $ 140,754 $ 119,002 $ 85,968 $ 129,938 $ 92,875 Total average assets 9,586,326 9,601,108 9,293,287 9,593,676 9,244,495 Return on average assets adjusted for non-core items (after tax) 1.47 % 1.24 % 0.93 % 1.35 % 1.00 % (a) Based on a 21% statutory federal corporate income tax rate. The return on average assets for the second quarter of 2026 decreased when compared to the linked quarter due to lower annualized net income. The increase in the return on average assets and return on average assets adjusted for non-core items for the second quarter of 2026, compared to the second quarter of 2025, was attributable to an increase in annualized net income driven by a decrease in provision for credit losses and an increase in average assets. The increase in return on average assets and return on average assets adjusted for non-core items for the first six months of 2026 when compared to the same period of 2025 was primarily driven by an increase in annualized net income from a decrease in provision for credit losses and an increase in average assets. Return on Average Tangible Equity Ratio (Non-US GAAP) The return on average tangible equity ratio is a key financial measure used to monitor performance. This ratio is calculated as annualized net income (less the after-tax impact of amortization of other intangible assets) divided by average tangible equity. This 61 Table of Contents measure is Non-US GAAP since it excludes amortization of other intangible assets from earnings and the impact of goodwill and other intangible assets acquired through acquisitions on total stockholders' equity. Three Months Ended Six Months Ended June 30, 2026 March 31, 2026 June 30, 2025 June 30, (Dollars in thousands) 2026 2025 Annualized net income excluding amortization of other intangible assets: Net income $ 27,953 $ 29,006 $ 21,212 $ 56,959 $ 45,548 Add: amortization of other intangible assets 1,697 1,697 2,211 3,394 4,424 Less: tax effect of amortization of other intangible assets (a) 356 356 464 713 929 Net income excluding amortization of other intangible assets $ 29,294 $ 30,347 $ 22,959 $ 59,640 $ 49,043 Days in the period 91 90 91 181 181 Days in the year 365 365 365 365 365 Annualized net income $ 112,119 $ 117,635 $ 85,081 $ 114,862 $ 91,851 Annualized net income excluding amortization of other intangible assets $ 117,498 $ 123,074 $ 92,088 $ 120,269 $ 98,899 Average tangible equity: Total average stockholders' equity $ 1,228,192 $ 1,218,368 $ 1,147,253 $ 1,223,307 $ 1,135,124 Less: average goodwill and other intangible assets 390,753 392,490 398,940 391,617 400,135 Average tangible equity $ 837,439 $ 825,878 $ 748,313 $ 831,690 $ 734,989 Return on total average stockholders' equity ratio: Annualized net income $ 112,119 $ 117,635 $ 85,081 $ 114,862 $ 91,851 Total average stockholders' equity $ 1,228,192 $ 1,218,368 $ 1,147,253 $ 1,223,307 $ 1,135,124 Return on total average stockholders' equity 9.13 % 9.66 % 7.42 % 9.39 % 8.09 % Return on average tangible equity ratio: Annualized net income excluding amortization of other intangible assets $ 117,498 $ 123,074 $ 92,088 $ 120,269 $ 98,899 Average tangible equity $ 837,439 $ 825,878 $ 748,313 $ 831,690 $ 734,989 Return on average tangible equity 14.03 % 14.90 % 12.31 % 14.46 % 13.46 % (a) Based on a 21% statutory federal corporate income tax rate. The return on total average stockholders' equity and return on average tangible equity ratios decreased when compared to the linked quarter due to a decrease in annualized net income. The increases in the return on total average stockholders' equity and return on average tangible equity ratios for the second quarter and the first six months of 2026 compared to the same periods of 2025 were driven by higher annualized net income. 62 Table of Contents FINANCIAL CONDITION Cash and Cash Equivalents At June 30, 2026, Peoples' interest-bearing deposits in other banks had decreased $7.9 million from December 31, 2025. The total cash and cash equivalents balance included $65.3 million of excess cash reserves being maintained at the FRB of Cleveland at June 30, 2026, compared to $73.2 million at December 31, 2025. The amount of excess cash reserves maintained is dependent upon Peoples' daily liquidity position, which is driven primarily by changes in deposit and loan balances. Through the first six months of 2026, Peoples' total cash and cash equivalents decreased $9.2 million, which reflected cash inflows of $75.7 million for investing activities and $90.6 million from operating activities, partially offset by cash outflows of $175.5 million for financing activities. Peoples' cash provided by investing activities was primarily driven by sales of available-for-sale investment securities and proceeds from principal payments on held-to-maturity investment securities, which totaled $129.8 million and $105.8 million, respectively. These increases were partially offset by purchases of available-for-sale investment securities of $74.9 million and a net increase in loans held for investment of $74.6 million. The cash used by financing activities was driven by a net decrease in interest-bearing deposits of $202.4 million. Further information regarding the management of Peoples' liquidity position can be found later in this discussion under “Interest Rate Sensitivity and Liquidity.” Investment Securities The following table provides information regarding Peoples’ investment portfolio: (Dollars in thousands) Weighted Average Yield June 30, 2026 March 31, 2026 December 31, 2025 September 30, 2025 June 30, 2025 Available-for-sale securities, at fair value: Obligations of: U.S. Treasury and government agencies 4.14 % $ 14,629 $ 26,152 $ 17,580 $ 17,696 $ 13,880 U.S. government sponsored agencies 3.93 % 215,080 231,332 206,330 164,132 210,856 States and political subdivisions 2.72 % 108,141 165,105 170,832 186,822 193,363 Residential mortgage-backed securities 2.50 % 480,730 522,638 544,038 561,517 576,541 Commercial mortgage-backed securities 2.66 % 52,626 59,905 41,804 42,510 52,699 Bank-issued trust preferred securities 3.25 % 2,844 2,812 3,783 4,229 4,158 Total fair value $ 874,050 $ 1,007,944 $ 984,367 $ 976,906 $ 1,051,497 Total amortized cost $ 966,592 $ 1,107,248 $ 1,076,980 $ 1,078,703 $ 1,170,092 Net unrealized loss $ (92,542) $ (99,304) $ (92,613) $ (101,797) $ (118,595) Held-to-maturity securities, at amortized cost: Obligations of: U.S. government sponsored agencies 4.38 % $ 247,324 $ 247,148 $ 261,826 $ 255,888 $ 299,183 States and political subdivisions (a) 2.25 % 138,389 138,598 140,607 141,869 142,082 Residential mortgage-backed securities 4.55 % 383,691 399,724 423,628 438,101 360,559 Commercial mortgage-backed securities 2.50 % 97,928 98,205 96,776 95,966 98,195 Total amortized cost $ 867,332 $ 883,675 $ 922,837 $ 931,824 $ 900,019 Other investments $ 76,099 $ 69,903 $ 68,656 $ 63,991 $ 67,538 Total investment securities: Amortized cost $ 1,910,023 $ 2,060,826 $ 2,068,473 $ 2,074,518 $ 2,137,649 Carrying value $ 1,817,481 $ 1,961,522 $ 1,975,860 $ 1,972,721 $ 2,019,054 (a) Amortized cost is presented net of the allowance for credit losses of $233 at June 30, 2026, $233 at March 31, 2026 and $237 at June 30, 2025. For the second quarter of 2026, available-for-sale investment securities decreased compared to all prior periods due to the sale of $135.2 million of securities as Peoples manages its balance sheet under $10 billion in assets ahead of the pending Citizens merger. For the second quarter of 2026, held-to-maturity securities decreased compared to all prior periods due to prepayments and maturities of collateralized mortgage obligations. Additional information regarding Peoples' investment portfolio can be found in "Note 3 Investment Securities" of the Notes to the Unaudited Condensed Consolidated Financial Statements. 63 Table of Contents Loans and Leases The following table provides information regarding outstanding loan balances: (Dollars in thousands) June 30, 2026 March 31, 2026 December 31, 2025 September 30, 2025 June 30, 2025 Originated loans and leases: Construction $ 286,323 $ 248,396 $ 275,888 $ 207,528 $ 288,824 Commercial real estate, other 1,633,383 1,653,982 1,635,055 1,633,725 1,468,120 Commercial real estate 1,919,706 1,902,378 1,910,943 1,841,253 1,756,944 Commercial and industrial 1,583,587 1,525,459 1,405,379 1,338,185 1,249,948 Premium finance 266,015 228,883 253,075 273,297 277,622 Leases 348,782 342,120 354,852 369,756 383,923 Residential real estate 514,898 507,499 502,475 497,415 483,486 Home equity lines of credit 239,473 223,581 214,967 206,084 197,875 Consumer, indirect 693,529 699,854 700,582 710,385 692,674 Consumer, direct 113,963 114,057 114,077 111,017 105,678 Consumer 807,492 813,911 814,659 821,402 798,352 Deposit account overdrafts 1,041 1,265 1,014 982 964 Total originated loans and leases $ 5,680,994 $ 5,545,096 $ 5,457,364 $ 5,348,374 $ 5,149,114 Acquired loans and leases (a): Construction $ 8,027 $ 21,175 $ 25,053 $ 53,520 $ 52,489 Commercial real estate, other 649,780 686,851 728,912 735,671 780,094 Commercial real estate 657,807 708,026 753,965 789,191 832,583 Commercial and industrial 106,230 121,338 130,376 151,320 157,434 Leases 5,170 8,106 10,797 12,997 16,129 Residential real estate 331,577 344,512 359,247 378,358 394,482 Home equity lines of credit 34,492 37,328 38,897 41,299 43,910 Consumer, direct 5,310 5,802 6,261 7,189 7,937 Total acquired loans and leases $ 1,140,586 $ 1,225,112 $ 1,299,543 $ 1,380,354 $ 1,452,475 Total loans and leases $ 6,821,580 $ 6,770,208 $ 6,756,907 $ 6,728,728 $ 6,601,589 Percent of loans and leases to total loans and leases: Construction 4.3 % 4.0 % 4.5 % 3.9 % 5.2 % Commercial real estate, other 33.5 % 34.5 % 34.9 % 35.1 % 34.0 % Commercial real estate 37.8 % 38.5 % 39.4 % 39.0 % 39.2 % Commercial and industrial 24.8 % 24.3 % 22.7 % 22.1 % 21.3 % Premium finance 3.9 % 3.4 % 3.7 % 4.1 % 4.2 % Leases 5.2 % 5.2 % 5.4 % 5.7 % 6.1 % Residential real estate 12.4 % 12.6 % 12.8 % 13.0 % 13.3 % Home equity lines of credit 4.0 % 3.9 % 3.8 % 3.7 % 3.7 % Consumer, indirect 10.2 % 10.3 % 10.4 % 10.6 % 10.5 % Consumer, direct 1.7 % 1.8 % 1.8 % 1.8 % 1.7 % Consumer 11.9 % 12.1 % 12.2 % 12.4 % 12.2 % Total percentage 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % Residential real estate loans being serviced for others $ 326,021 $ 319,664 $ 322,139 $ 323,347 $ 326,710 (a) Includes all loans acquired, and related loan discount recorded as part of acquisition accounting, in 2012 or thereafter. Loans that were acquired and subsequently re-underwritten are reported as originated upon execution of such credit actions (for example, renewals and increases in lines of credit). The period-end total loan and lease balances at June 30, 2026 increased $51.4 million, or 3% annualized, compared to at March 31, 2026. The increase in the period-end loan and lease balances at June 30, 2026 compared to at March 31, 2026 was driven by increases of $43.0 million in commercial and industrial loans, driven largely by life premium finance loans, $37.1 million in commercial premium finance loans, and $24.8 million in construction loans, partially offset by a decrease of $57.7 million in other commercial real estate loans. The period-end loan and lease balances at June 30, 2026 increased $220.0 million, or 3%, compared to at June 30, 2025, driven by increases of $282.4 million in commercial and industrial loans, $34.9 million in other commercial real estate loans, and $32.2 million home equity lines of credit. These increases were partially offset by decreases of $47.0 million in construction loans, $46.1 million in leases, and $31.5 million in residential real estate loans. 64 Table of Contents Loan Concentration Peoples categorizes its commercial loans according to standard industry classifications and monitors for concentrations in a single industry or multiple industries that could be impacted by changes in economic conditions in a similar manner. Peoples' commercial lending activities continue to be spread over a diverse range of businesses from many sectors of the economy, with no single industry comprising over 10% of Peoples' total loan portfolio. Loans secured by commercial real estate, including commercial construction loans, continued to comprise the largest portion of Peoples' loan portfolio at June 30, 2026. The following tables provide information regarding the largest concentrations of commercial construction loans and other commercial real estate loans within the loan portfolio at June 30, 2026: (Dollars in thousands) Outstanding Balance Loan Commitments Total Exposure % of Total Construction: Apartment complexes $ 135,800 $ 166,846 $ 302,646 50.7 % Land development 29,706 13,260 42,966 7.2 % Land only 27,618 33,330 60,948 10.2 % Industrial 33,902 18,687 52,589 8.8 % Residential property 4,614 14,588 19,202 3.2 % Storage facility 6,788 13,328 20,116 3.4 % Healthcare facilities 660 19,719 20,379 3.4 % Warehouse facilities 12,701 2,930 15,631 2.6 % Other (a) 42,561 19,429 61,990 10.5 % Total construction $ 294,350 $ 302,117 $ 596,467 100.0 % (a) All other total exposures by industry are less than 2% of the Total Exposure. 65 Table of Contents (Dollars in thousands) Outstanding Balance Loan Commitments Total Exposure % of Total Commercial real estate, other: Apartment complexes $ 450,701 $ 13,286 $ 463,987 19.9 % Industrial facilities: Owner occupied $ 125,433 $ 1,731 $ 127,164 5.4 % Non-owner occupied 112,613 2,837 115,450 4.9 % Total industrial facilities $ 238,046 $ 4,568 $ 242,614 10.3 % Retail facilities: Owner occupied $ 42,963 $ 2,114 $ 45,077 1.9 % Non-owner occupied 225,063 216 225,279 9.6 % Total retail facilities $ 268,026 $ 2,330 $ 270,356 11.5 % Lodging and lodging related: Owner occupied $ 26,553 $ — $ 26,553 1.1 % Non-owner occupied 181,202 3,926 185,128 7.9 % Total lodging and lodging related $ 207,755 $ 3,926 $ 211,681 9.0 % Office buildings and complexes: Owner occupied $ 74,697 $ 1,517 $ 76,214 3.3 % Non-owner occupied 93,631 1,249 94,880 4.1 % Total office buildings and complexes $ 168,328 $ 2,766 $ 171,094 7.4 % Assisted living facilities and nursing homes $ 129,936 $ 629 $ 130,565 5.6 % Warehouse facilities: Owner occupied $ 71,019 $ 218 $ 71,237 3.0 % Non-owner occupied 25,368 152 25,520 1.1 % Total warehouse facilities $ 96,387 $ 370 $ 96,757 4.1 % Restaurant/bar facilities: Owner occupied $ 50,296 $ — $ 50,296 2.2 % Non-owner occupied 21,058 — 21,058 0.9 % Total restaurant/bar facilities $ 71,354 $ — $ 71,354 3.1 % Mixed-use facilities: Owner occupied $ 37,782 $ 123 $ 37,905 1.6 % Non-owner occupied 28,171 356 28,527 1.2 % Total mixed-use facilities $ 65,953 $ 479 $ 66,432 2.8 % Storage Facility / Mini Storage Owner occupied $ 47,727 $ 196 $ 47,923 2.1 % Non-owner occupied 4,358 66 4,424 0.2 % Total storage facility/ mini storage $ 52,085 $ 262 $ 52,347 2.3 % Other (a) 534,592 25,775 560,367 24.0 % Total commercial real estate, other $ 2,283,163 $ 54,391 $ 2,337,554 100.0 % (a) All other total exposures by industry are less than 2% of the Total Exposure. Peoples' commercial lending activities continue to focus on lending opportunities within Ohio, Kentucky, West Virginia, Virginia, Washington, D.C. and Maryland. For all other states, the aggregate outstanding balances of commercial loans in each state were less than 6% of total loans at June 30, 2026 and at December 31, 2025. The repayment of premium finance loans is secured by the underlying insurance policy prepaid premium, and therefore, geography is not a factor from a repayment perspective. The repayment of leases is secured by the underlying equipment collateral and not real estate, which mitigates geographic risk. 66 Table of Contents Allowance for Credit Losses The amount of the allowance for credit losses at the end of each period represents management's estimate of expected losses from existing loans based upon its quarterly analysis of the loan portfolio. While this process involves allocations being made to specific loans and pools of loans, the entire allowance is available for all losses expected within the loan portfolio. The following table details management's allocation of the allowance for credit losses: (Dollars in thousands) June 30, 2026 March 31, 2026 December 31, 2025 September 30, 2025 June 30, 2025 Construction $ 1,694 $ 1,512 $ 1,391 $ 1,252 $ 1,347 Commercial real estate, other 20,811 20,803 19,726 18,316 17,144 Commercial and industrial 20,824 21,759 18,804 17,896 17,854 Premium finance 1,569 686 749 776 794 Leases 14,366 15,304 16,475 18,040 19,633 Residential real estate 6,559 6,643 6,295 6,348 6,113 Home equity lines of credit 1,728 1,643 1,934 1,880 1,814 Consumer, indirect 8,306 7,760 7,706 7,862 7,643 Consumer, direct 2,139 2,156 2,485 2,385 2,248 Deposit account overdrafts 107 126 111 109 91 Allowance for credit losses $ 78,103 $ 78,392 $ 75,676 $ 74,864 $ 74,681 As a percent of total loans 1.14 % 1.16 % 1.12 % 1.11 % 1.13 % The decrease in the allowance for credit losses at June 30, 2026 compared to at March 31, 2026 was driven by a reduction of balances in loan segments with higher loss rates, partially offset by an increase in individually-analyzed loans. Compared to at June 30, 2025, the allowance for credit losses increased due to loan growth and a deterioration in macro-economic conditions, partially offset by a decrease in individually-analyzed loans. Additional information regarding Peoples' allowance for credit losses can be found in "Note 1 Summary of Significant Accounting Policies" in Peoples' 2025 Form 10-K and "Note 4 Loans and Leases" of the Notes to the Unaudited Condensed Consolidated Financial Statements in this Form 10-Q. 67 Table of Contents The following table summarizes Peoples’ net charge-offs and recoveries: Three Months Ended (Dollars in thousands) June 30, 2026 March 31, 2026 December 31, 2025 September 30, 2025 June 30, 2025 Gross charge-offs: Commercial real estate, other $ 167 $ — $ 18 $ 27 $ 35 Commercial and industrial 222 265 343 472 556 Premium finance 65 52 213 105 93 Leases 4,221 4,811 5,721 4,930 5,099 Residential real estate 115 119 60 71 — Home equity lines of credit 32 32 2 27 12 Consumer, indirect 1,437 1,929 1,558 1,607 1,693 Consumer, direct 205 204 161 290 96 Consumer 1,642 2,133 1,719 1,897 1,789 Deposit account overdrafts 302 347 315 312 245 Total gross charge-offs $ 6,766 $ 7,759 $ 8,391 $ 7,841 $ 7,829 Recoveries: Construction $ — $ — $ 25 $ — $ — Commercial real estate, other — — 59 1 — Commercial and industrial 26 11 3 26 17 Premium finance 15 6 1 3 3 Leases 818 557 365 443 261 Residential real estate 53 82 36 40 50 Home equity lines of credit — 12 — — — Consumer, indirect 596 337 385 418 449 Consumer, direct 22 26 10 27 14 Consumer 618 363 395 445 463 Deposit account overdrafts 51 83 68 54 71 Total recoveries $ 1,581 $ 1,114 $ 952 $ 1,012 $ 865 Net charge-offs (recoveries): Construction $ — $ — $ (25) $ — $ — Commercial real estate, other 167 — (41) 26 35 Commercial and industrial 196 254 340 446 539 Premium finance 50 46 212 102 90 Leases 3,403 4,254 5,356 4,487 4,838 Residential real estate 62 37 24 31 (50) Home equity lines of credit 32 20 2 27 12 Consumer, indirect 841 1,592 1,173 1,189 1,244 Consumer, direct 183 178 151 263 82 Consumer 1,024 1,770 1,324 1,452 1,326 Deposit account overdrafts 251 264 247 258 174 Total net charge-offs $ 5,185 $ 6,645 $ 7,439 $ 6,829 $ 6,964 Ratio of net charge-offs (recoveries) to average total loans (annualized): Construction — % — % — % — % — % Commercial real estate, other 0.01 % — % — % — % — % 68 Table of Contents Three Months Ended (Dollars in thousands) June 30, 2026 March 31, 2026 December 31, 2025 September 30, 2025 June 30, 2025 Commercial and industrial 0.01 % 0.02 % 0.02 % 0.03 % 0.03 % Premium finance — % — % 0.01 % 0.01 % 0.01 % Leases 0.20 % 0.26 % 0.32 % 0.27 % 0.30 % Residential real estate — % — % — % — % — % Home equity lines of credit — % — % — % — % — % Consumer, indirect 0.05 % 0.10 % 0.07 % 0.06 % 0.07 % Consumer, direct 0.02 % — % 0.01 % 0.02 % 0.01 % Consumer 0.07 % 0.10 % 0.08 % 0.08 % 0.08 % Deposit account overdrafts 0.02 % 0.02 % 0.01 % 0.02 % 0.01 % Total 0.31 % 0.40 % 0.44 % 0.41 % 0.43 % Each with "--%" not meaningful. Total net charge-offs during the second quarter of 2026 were $5.2 million, or 0.31% of average total loans on an annualized basis, compared to $6.6 million, or 0.40% of average total loans on an annualized basis, during the linked quarter and $7.0 million, or 0.43% of average total loans on an annualized basis, during the second quarter of 2025. Compared to the linked quarter and same period of 2025, net charge-offs decreased, primarily driven by a decrease in net charge-offs in leases and indirect consumer loans. 69 Table of Contents The following table details Peoples’ nonperforming assets: (Dollars in thousands) June 30, 2026 March 31, 2026 December 31, 2025 September 30, 2025 June 30, 2025 Loans 90+ days past due and accruing: Commercial real estate, other $ 3,874 $ — $ 579 $ — $ 494 Commercial and industrial 85 105 126 163 36 Premium finance 1,793 1,820 2,477 2,492 3,533 Leases — 77 542 496 547 Residential real estate 1,655 426 1,937 1,432 1,192 Home equity lines of credit 193 196 69 28 108 Consumer, indirect 93 107 286 160 98 Consumer, direct 145 115 140 127 118 Consumer 238 222 426 287 216 Total loans 90+ days past due and accruing $ 7,838 $ 2,846 $ 6,156 $ 4,898 $ 6,126 Nonaccrual loans: Construction 293 — — — — Commercial real estate, other 6,802 7,363 4,056 3,861 4,824 Commercial and industrial 4,546 4,558 8,045 6,258 5,514 Premium Finance — 455 573 — — Leases 8,145 9,909 11,063 11,338 11,907 Residential real estate 8,978 9,601 8,556 8,249 8,028 Home equity lines of credit 1,550 1,555 1,507 1,336 1,339 Consumer, indirect 2,594 2,994 2,718 2,563 2,697 Consumer, direct 193 279 368 284 176 Consumer 2,787 3,273 3,086 2,847 2,873 Total nonaccrual loans $ 33,101 $ 36,714 $ 36,886 $ 33,889 $ 34,485 Total nonperforming loans ("NPLs") $ 40,939 $ 39,560 $ 43,042 $ 38,787 $ 40,611 OREO: Commercial $ — $ — $ — $ 5,891 $ 5,891 Residential 115 97 123 122 122 Total OREO $ 115 $ 97 $ 123 $ 6,013 $ 6,013 Total nonperforming assets ("NPAs") $ 41,054 $ 39,657 $ 43,165 $ 44,800 $ 46,624 Criticized loans (a) $ 273,791 $ 224,124 $ 236,468 $ 268,326 $ 244,442 Classified loans (b) $ 140,811 $ 141,940 $ 147,175 $ 158,577 $ 125,014 Asset Quality Ratios (c): Nonaccrual loans as a percent of total loans 0.49 % 0.54 % 0.55 % 0.50 % 0.52 % NPLs as a percent of total loans (d) 0.60 % 0.58 % 0.64 % 0.58 % 0.61 % NPAs as a percent of total assets (d) 0.43 % 0.41 % 0.45 % 0.47 % 0.49 % NPAs as a percent of total loans and OREO (d) 0.60 % 0.59 % 0.64 % 0.66 % 0.71 % Allowance for credit losses as a percent of nonaccrual loans 235.95 % 213.52 % 205.16 % 220.91 % 216.56 % Allowance for credit losses as a percent of NPLs (d) 190.78 % 198.16 % 175.82 % 193.01 % 183.89 % Criticized loans as a percent of total loans (a) 4.01 % 3.31 % 3.50 % 3.99 % 3.70 % Classified loans as a percent of total loans (b) 2.06 % 2.10 % 2.18 % 2.36 % 1.89 % (a) Includes loans categorized as special mention, substandard, doubtful, or loss. (b) Includes loans categorized as substandard, doubtful, or loss. (c) Data presented as of the end of the period indicated. (d) NPLs include loans 90+ days past due and accruing and nonaccrual loans. NPAs include nonperforming loans and OREO. 70 Table of Contents Peoples' NPAs increased from 0.41% of total assets at March 31, 2026 to 0.43% of total assets at June 30, 2026. Total loans 90+ days past due and accruing increased at June 30, 2026 compared to March 31, 2026 driven by two large other commercial real estate loans totaling $3.8 million. During the second quarter of 2026, criticized loans increased $49.7 million, while classified loans decreased $1.1 million when compared to at March 31, 2026. The increase in criticized loans compared to at March 31, 2026 was driven by fewer paydowns on loans previously considered criticized, coupled with an increase in loan downgrades. The increase in classified loans when compared to at June 30, 2025 was driven by loan downgrades. The increase in NPAs compared to at March 31, 2026, was primarily driven by the aforementioned other commercial real estate loans 90+ days past due and accruing. The decrease in NPAs compared to at June 30, 2025, was driven by the sale of a commercial OREO property at the end of 2025. Deposits The following table details Peoples’ deposit balances: (Dollars in thousands) June 30, 2026 March 31, 2026 December 31, 2025 September 30, 2025 June 30, 2025 Non-interest-bearing deposits (a) $ 1,593,799 $ 1,586,514 $ 1,545,428 $ 1,536,094 $ 1,530,824 Interest-bearing deposits: Retail CDs 1,876,056 1,968,441 1,983,791 2,008,619 2,005,322 Interest-bearing demand accounts (a) 1,094,873 1,111,875 1,092,252 1,068,443 1,058,910 Money market deposit accounts 995,487 958,413 945,313 948,177 927,543 Savings accounts 915,505 918,557 887,402 884,230 889,872 Governmental deposit accounts 755,024 842,087 739,939 769,782 781,949 Brokered CDs 225,621 262,550 416,099 416,851 442,788 Total interest-bearing deposits 5,862,566 6,061,923 6,064,796 6,096,102 6,106,384 Total deposits $ 7,456,365 $ 7,648,437 $ 7,610,224 $ 7,632,196 $ 7,637,208 Demand deposits as a percent of total deposits 36 % 35 % 35 % 34 % 34 % (a) The sum of amounts presented is considered total demand deposits. At June 30, 2026, period-end total deposits decreased $192.1 million compared to at March 31, 2026, driven by decreases of $92.4 million in retail certificates of deposits, $87.1 million in governmental deposits, driven by seasonality, and $36.9 million in brokered CDs, partially offset by increases of $37.1 million in money market deposit accounts. Compared to June 30, 2025, period-end deposit balances decreased $180.8 million, or 2%. The decrease in total deposits was primarily driven by a decrease of $217.2 million in brokered deposits and $129.3 million in retail certificates of deposits, partially offset by increases of $67.9 million in money market deposit accounts, $63.0 million in non-interest bearing deposits, $36.0 million in interest-bearing demand accounts, and $25.6 million in savings accounts. As part of its funding strategy, Peoples hedges 90-day brokered CDs or FHLB advances with interest rate swaps. The interest rate swaps pay a fixed rate of interest while receiving a floating rate component of interest tied to term SOFR, which offsets the rate on the brokered CDs or FHLB advances. As of June 30, 2026, Peoples had four effective interest rate swaps, with an aggregate notional value of $35.0 million, which were designated as cash flow hedges. Peoples continually evaluates the overall balance sheet position given the interest rate environment. 71 Table of Contents Borrowed Funds The following table details Peoples’ short-term borrowings and long-term borrowings: (Dollars in thousands) June 30, 2026 March 31, 2026 December 31, 2025 September 30, 2025 June 30, 2025 Short-term borrowings: FHLB Overnight borrowings $ 544,000 $ 420,000 $ 365,000 $ 194,000 $ 356,000 Current portion of long-term FHLB advances 10,021 — — — — Retail repurchase agreements 14,410 22,941 20,277 14,250 23,569 Other short-term borrowings 20,222 62,921 145,008 275,340 17,291 Total short-term borrowings $ 588,653 $ 505,862 $ 530,285 $ 483,590 $ 396,860 Long-term borrowings: FHLB advances $ 80,842 $ 110,979 $ 131,106 $ 131,323 $ 131,580 Vantage non-recourse debt 43,227 42,451 41,386 40,324 45,429 Other long-term borrowings 32,184 32,000 31,646 55,635 55,382 Total long-term borrowings $ 156,253 $ 185,430 $ 204,138 $ 227,282 $ 232,391 Total borrowed funds $ 744,906 $ 691,292 $ 734,423 $ 710,872 $ 629,251 Total borrowed funds, which include overnight borrowings, are mainly a function of loan growth and changes in total deposit balances. Other long-term borrowings include trust preferred securities and floating rate deferrable interest debentures. Total borrowed funds at June 30, 2026 increased compared to at March 31, 2026 due to higher overnight borrowings. Total borrowed funds increased compared to at June 30, 2025 due to higher overnight borrowings, partially offset by the payoff of long-term FHLB advances. Capital/Stockholders’ Equity At June 30, 2026, capital levels for both Peoples and Peoples Bank remained substantially higher than the minimum amounts needed to be considered "well capitalized" institutions under applicable banking regulations. These higher capital levels reflect Peoples' desire to maintain a strong capital position. In order to avoid limitations on dividends, equity repurchases and compensation, Peoples must exceed the three minimum required ratios by at least the capital conservation buffer of 2.50%, which applies to the common equity tier 1 ("CET1") ratio, the tier 1 capital ratio and the total risk-based capital ratio. At June 30, 2026, Peoples had a capital conservation buffer of 6.19%. The following table details Peoples' risk-based capital levels and corresponding ratios: (Dollars in thousands) June 30, 2026 March 31, 2026 December 31, 2025 September 30, 2025 June 30, 2025 Capital Amounts: Common Equity Tier 1 $ 928,639 $ 911,986 $ 893,970 $ 875,454 $ 857,036 Tier 1 960,823 943,986 925,616 906,900 888,282 Total (Tier 1 and Tier 2) 1,041,030 1,023,777 1,002,226 997,309 982,929 Net risk-weighted assets $ 7,334,712 $ 7,323,344 $ 7,273,985 $ 7,231,476 $ 7,170,841 Capital Ratios: Common Equity Tier 1 12.66 % 12.45 % 12.29 % 12.11 % 11.95 % Tier 1 13.10 % 12.89 % 12.73 % 12.54 % 12.39 % Total (Tier 1 and Tier 2) 14.19 % 13.98 % 13.78 % 13.79 % 13.71 % Tier 1 leverage ratio 10.33 % 10.14 % 9.91 % 9.74 % 9.83 % Peoples' risk-based capital ratios at June 30, 2026 increased when compared to at March 31, 2026 due to the increase in retained earnings, driven by net income in the quarter coupled with a decrease in accumulated other comprehensive income. In addition to traditional capital measurements, management uses tangible capital measures to evaluate the adequacy of Peoples' stockholders' equity. Such ratios represent Non-US GAAP financial measures since their calculation removes the impact of goodwill and other intangible assets acquired through acquisitions on amounts reported in the Unaudited Consolidated Balance Sheets. Management believes this information is useful to investors since it facilitates the comparison of Peoples' operating performance, financial condition and trends to peers, especially those without a similar level of intangible assets to that of Peoples. Further, intangible assets generally are difficult to convert into cash, especially during a financial crisis, and could decrease substantially in 72 Table of Contents value should there be deterioration in the overall franchise value. As a result, tangible equity represents a conservative measure of the capacity for Peoples to incur losses but remain solvent. The following table reconciles the calculation of these Non-US GAAP financial measures to amounts reported in Peoples' Unaudited Condensed Consolidated Financial Statements: (Dollars in thousands) June 30, 2026 March 31, 2026 December 31, 2025 September 30, 2025 June 30, 2025 Tangible equity: Total stockholders' equity $ 1,236,551 $ 1,216,040 $ 1,206,602 $ 1,182,776 $ 1,153,350 Less: goodwill and other intangible assets 389,963 391,601 393,319 395,535 397,785 Tangible equity $ 846,588 $ 824,439 $ 813,283 $ 787,241 $ 755,565 Tangible assets: Total assets $ 9,540,161 $ 9,648,087 $ 9,649,630 $ 9,623,944 $ 9,540,608 Less: goodwill and other intangible assets 389,963 391,601 393,319 395,535 397,785 Tangible assets $ 9,150,198 $ 9,256,486 $ 9,256,311 $ 9,228,409 $ 9,142,823 Tangible book value per common share: Tangible equity $ 846,588 $ 824,439 $ 813,283 $ 787,241 $ 755,565 Common shares outstanding 35,939,954 35,925,945 35,714,484 35,705,369 35,673,721 Tangible book value per common share $ 23.56 $ 22.95 $ 22.77 $ 22.05 $ 21.18 Tangible equity to tangible assets ratio: Tangible equity $ 846,588 $ 824,439 $ 813,283 $ 787,241 $ 755,565 Tangible assets $ 9,150,198 $ 9,256,486 $ 9,256,311 $ 9,228,409 $ 9,142,823 Tangible equity to tangible assets 9.25 % 8.91 % 8.79 % 8.53 % 8.26 % Tangible book value per common share increased to $23.56 at June 30, 2026 compared to $22.95 at March 31, 2026. Tangible book value per common share at June 30, 2026 increased compared to at June 30, 2025 primarily due to net income over the last twelve months. The change in tangible equity to tangible assets was due to the decrease in tangible assets during the second quarter of 2026 primarily driven by the sale of $135.2 million of available-for-sale securities. Interest Rate Sensitivity and Liquidity While Peoples is exposed to various business risks, the risks relating to interest rate sensitivity and liquidity are major risks that can materially impact future results of operations and financial condition due to their complexity and dynamic nature. The objective of Peoples' asset-liability management function is to measure and manage these risks in order to optimize net interest income within the constraints of prudent capital adequacy, liquidity and safety. This objective requires Peoples to focus on interest rate risk exposure and adequate liquidity through its management of the mix of assets and liabilities, their related cash flows and the rates earned and paid on those assets and liabilities. Ultimately, the asset-liability management function is intended to guide management in the acquisition and disposition of earning assets and selection of appropriate funding sources. Interest Rate Risk Interest rate risk ("IRR") is one of the most significant risks arising in the normal course of business of financial services companies like Peoples. IRR is the potential for economic loss due to future interest rate changes that can impact the earnings stream, as well as market values, of financial assets and financial liabilities. Peoples' exposure to IRR is due primarily to differences in the maturity or repricing of earning assets and interest-bearing liabilities. In addition, other factors, such as prepayments of loans and investment securities, or early withdrawal of deposits, can affect Peoples' exposure to IRR and impact interest costs or revenue streams. Peoples has assigned overall management of IRR to its Asset-Liability Committee (the “ALCO”), which has established an IRR management policy that sets minimum requirements and guidelines for monitoring and managing the level of IRR, including the review of assumptions used in modeling IRR. 73 Table of Contents The following table shows the estimated changes in net interest income and the economic value of equity based upon a standard, parallel shock analysis with balances held constant (dollars in thousands): Increase (Decrease) in Interest Rate Estimated Increase (Decrease) in Net Interest Income Estimated (Decrease) Increase in Economic Value of Equity (in Basis Points) June 30, 2026 December 31, 2025 June 30, 2026 December 31, 2025 300 $ 41,207 10.7 % $ 33,685 9.0 % $ (126,798) (5.7) % $ (180,169) (8.5) % 200 28,329 7.4 % 24,680 6.6 % (52,008) (2.3) % (81,855) (3.9) % 100 14,920 3.9 % 15,234 4.1 % (6,088) (0.3) % (11,295) (0.5) % (100) (14,123) (3.7) % (9,381) (2.5) % (61,215) (2.7) % (29,918) (1.4) % (200) (28,870) (7.5) % (19,378) (5.2) % (180,791) (8.1) % (128,374) (6.1) % (300) $ (17,758) (4.6) % $ 3,271 0.9 % $ (363,943) (16.3) % $ (307,784) (14.5) % This table uses a standard, parallel shock analysis on a static balance sheet for assessing the IRR to net interest income and the economic value of equity. A parallel shock assumes all points on the yield curve (one year, two year, three year, etc.) are directionally changed by the same degree. Management regularly assesses the impact of both increasing and decreasing interest rates. The table above shows the impact of upward and downward parallel shocks of 100, 200 and 300 basis points. Estimated changes in net interest income and the economic value of equity are partially driven by assumptions regarding the rate at which non-maturity deposits will reprice given a move in short-term interest rates, as well as assumptions regarding prepayment speeds on mortgage-backed securities. These and other modeling assumptions are monitored closely by Peoples on an ongoing basis. While parallel interest rate shock scenarios are useful in assessing the level of IRR inherent in the balance sheet, interest rates typically move in a nonparallel manner with differences in the timing, direction and magnitude of changes in short-term and long-term interest rates. Thus, any impact that might occur as a result of the Federal Reserve Board increasing short-term interest rates in the future could be offset by an inverse movement in long-term interest rates, and vice versa. For this reason, Peoples considers other interest rate scenarios in addition to analyzing the impact of parallel yield curve shifts. These include various flattening and steepening scenarios in which short-term and long-term interest rates move in different directions with varying magnitude. Peoples believes these scenarios to be more reflective of how interest rates change versus the severe parallel rate shocks described above. Given the shape of market yield curves at June 30, 2026, consideration of the bear steepener and bull steepener scenarios provide insights which were not captured by parallel shifts. The bear steepener scenario highlights the risk to net interest income and economic value of equity when short-term interest rates remain constant while long-term interest rates rise. In such a scenario, Peoples' deposit and borrowing costs, which are generally correlated with short-term interest rates, remain constant, while asset yields, which are correlated with long-term interest rates, rise. At June 30, 2026, the bear steepener scenario produced an increase in net interest income of 1.0% and an increase in the economic value of equity of 4.0%. The bull steepener scenario highlights the risk to net interest income and the economic value of equity when short-term rates fall faster than long-term rates. In such a scenario, Peoples' deposit and short-term borrowing costs, which are correlated with short-term rates, decrease, while long-term asset yields and long-term borrowing costs, which are more correlated with long-term rates, remain constant. Deposit costs decrease less quickly than variable rate asset yields over a short-term horizon but are mitigated to some extent over a longer horizon, resulting in a decreased amount of net interest income (margin) in a 12 month period and a relatively neutral impact to net interest income (margin) in a 24 month period. At June 30, 2026, the bull steepener scenario produced a decline of 1.0% to net interest income, as the impact of revised assumptions around deposit betas mitigate the impact of lower short-term rates over a 12-month horizon, and an increase in the economic value of equity of 1.0%. Peoples has entered into interest rate swaps as part of its interest rate risk management strategy. These interest rate swaps are designated as cash flow hedges and involve the receipt of variable rate amounts from a counterparty in exchange for Peoples making fixed payments. As of June 30, 2026, Peoples had entered into four interest rate swap contracts with an aggregate notional value of $35.0 million. Additional information regarding Peoples’ interest rate swaps can be found in “Note 10 Derivative Financial Instruments” of the Notes to the Unaudited Condensed Consolidated Financial Statements. At June 30, 2026, Peoples' Unaudited Consolidated Balance Sheet was positioned to benefit from rising interest rates, while also mitigating the impact to net interest income decreasing rate scenarios. The table above illustrates this point as changes to net interest income increase in the rising interest rate scenarios. Liquidity In addition to IRR management, another major objective of the ALCO is to maintain a sufficient level of liquidity. Peoples revisits the model assumptions on an ongoing basis, and determined the methods used by the ALCO to monitor and evaluate the 74 Table of Contents adequacy of Peoples Bank's liquidity position remains appropriate and is largely unchanged from those disclosed in Peoples' 2025 Form 10-K. At June 30, 2026, Peoples Bank had liquid assets of $493.2 million, which represented 4.5% of total assets and unfunded loan commitments. Peoples also had an additional $56.3 million of unpledged investment securities not included in the measurement of liquid assets. Management believes the current mix of short-term liquidity sources, loan and security portfolio cash flows, and availability of other funding sources will allow Peoples to meet anticipated cash obligations, as well as special needs and off-balance sheet commitments. Off-Balance Sheet Activities and Contractual Obligations In the normal course of business, Peoples is a party to financial instruments with off-balance sheet risk necessary to meet the financing needs of Peoples' customers. These financial instruments include commitments to extend credit and standby letters of credit. The instruments involve, to varying degrees, elements of credit risk in excess of the amount recognized in the Unaudited Consolidated Balance Sheets. The contractual amounts of these instruments express the extent of involvement Peoples has in these financial instruments. Loan Commitments and Standby Letters of Credit Loan commitments are made to accommodate the financial needs of Peoples' customers. Standby letters of credit are instruments issued by Peoples Bank guaranteeing the beneficiary payment by Peoples Bank in the event of default by Peoples Bank's customer in the performance of an obligation or service. Historically, most loan commitments and standby letters of credit expire unused. Peoples Bank's exposure to credit loss in the event of nonperformance by the counterparty to the financial instrument for loan commitments and standby letters of credit is represented by the contractual amount of those instruments. Peoples Bank uses the same underwriting standards in making commitments and conditional obligations as it does for on-balance sheet instruments. The amount of collateral obtained is based on management's credit evaluation of the customer. Collateral held varies, but may include accounts receivable, inventory, property, plant, and equipment, and income-producing commercial properties. Peoples Bank routinely engages in activities that involve, to varying degrees, elements of risk that are not reflected in whole or in part in the Unaudited Condensed Consolidated Financial Statements. These activities are part of Peoples Bank's normal course of business and include traditional off-balance sheet credit-related financial instruments, interest rate contracts and commitments to make additional capital contributions in low-income housing tax credit investments. Traditional off-balance sheet credit-related financial instruments continue to represent the most significant off-balance sheet exposure. The following table details the total contractual amount of loan commitments and standby letters of credit: (Dollars in thousands) June 30, 2026 March 31, 2026 December 31, 2025 September 30, 2025 June 30, 2025 Home equity lines of credit $ 297,084 $ 278,771 $ 272,977 $ 267,598 $ 268,217 Unadvanced construction loans 316,420 365,618 367,127 367,917 362,405 Other loan commitments 787,533 794,100 779,076 763,058 791,389 Loan commitments $ 1,401,037 $ 1,438,489 $ 1,419,180 $ 1,398,573 $ 1,422,011 Standby letters of credit $ 6,253 $ 7,071 $ 7,041 $ 6,402 $ 6,774 ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK The information called for by this Item 3 is provided under the caption “FINANCIAL CONDITION - Interest Rate Sensitivity and Liquidity” under “ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS” in this Form 10-Q, and is incorporated herein by reference.