Loans and Leases

6 Months Ended

Jun. 30, 2025

Peoples' loan portfolio consists of various types of loans and leases originated primarily as a result of lending opportunities within Peoples' footprint. Peoples also originates insurance premium finance loans nationwide through its Peoples Premium Finance division, and originates leases nationwide through its North Star Leasing ("NSL") division and its Vantage Financial, LLC ("Vantage") subsidiary.

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


(Dollars in thousands)	June 30, 2025		December 31, 2024
Construction	$	341,313	$	328,388
Commercial real estate, other	2,248,214		2,156,013
Commercial and industrial	1,407,382		1,347,645
Premium finance	277,622		269,435
Leases	400,052		406,598
Residential real estate	877,968		835,101
Home equity lines of credit	241,785		232,661
Consumer, indirect	692,674		669,857
Consumer, direct	113,615		111,052
Deposit account overdrafts	964		1,253
Total loans, at amortized cost	$	6,601,589	$	6,358,003

The table above includes net deferred loan origination costs of $19.7 million and $20.2 million at June 30, 2025 and at December 31, 2024, respectively. The remaining unamortized net discount included in the amortized cost of loans and leases was $12.9 million and $19.5 million at June 30, 2025 and at December 31, 2024, respectively.

Accrued interest receivable is not included within the loan balances, but is presented in the “Other assets” line of the Unaudited Consolidated Balance Sheets, with no recorded allowance for credit losses. Total interest receivable on loans was $22.7 million at June 30, 2025 and $23.1 million at December 31, 2024.

Nonaccrual and Past Due Loans

A loan is considered past due if any required principal and interest payments have not been received as of the date such payments were required to be made under the terms of the loan agreement. A loan may be placed on nonaccrual status regardless of whether or not such loan is considered past due.

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


	June 30, 2025				December 31, 2024
(Dollars in thousands)	Nonaccrual (a)		Accruing Loans 90+ Days Past Due		Nonaccrual (a)		Accruing Loans 90+ Days Past Due

Commercial real estate, other	4,824		494		7,136		227
Commercial and industrial	5,514		36		6,809		78
Premium finance	—		3,533		—		4,947
Leases	11,907		547		8,850		803
Residential real estate	8,028		1,192		7,329		2,166
Home equity lines of credit	1,339		108		1,498		213
Consumer, indirect	2,697		98		2,374		159
Consumer, direct	176		118		133		44
Total loans, at amortized cost	$	34,485	$	6,126	$	34,129	$	8,637

(a) There were $0.0 million and $5.7 million of nonaccrual loans for which there was no allowance for credit losses at June 30, 2025 and at December 31, 2024, respectively.

During the first six months of 2025, nonaccrual loans increased slightly compared to at December 31, 2024, which was primarily due to an uptick in the volume of leases placed on nonaccrual during the first six months, partially offset by decreases in commercial real estate and commercial and industrial loans. The decrease in accruing loans 90+ days past due at June 30, 2025, when compared to at December 31, 2024, was primarily due to reductions in accruing 90+ days past due premium finance loans and residential real estate loans of $1.4 million and $1.0 million, respectively. The delinquent premium finance loans carry low credit risk, due to the ability to cancel premiums and recover the majority of the receivable from the insurer.

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


	Loans Past Due								Current Loans		Total Loans
(Dollars in thousands)	30 - 59 days		60 - 89 days		90 + Days		Total
June 30, 2025
Construction	$	—	$	—	$	—	$	—	$	341,313	$	341,313
Commercial real estate, other	1,762		471		2,767		5,000		2,243,214		2,248,214
Commercial and industrial	1,814		5,058		3,189		10,061		1,397,321		1,407,382
Premium finance	1,921		1,227		3,533		6,681		270,941		277,622
Leases	2,595		3,178		12,150		17,923		382,129		400,052
Residential real estate	1,881		2,746		4,169		8,796		869,172		877,968
Home equity lines of credit	1,697		362		687		2,746		239,039		241,785
Consumer, indirect	5,770		1,228		1,228		8,226		684,448		692,674
Consumer, direct	523		170		196		889		112,726		113,615
Deposit account overdrafts	—		—		—		—		964		964
Total loans, at amortized cost	$	17,963	$	14,440	$	27,919	$	60,322	$	6,541,267	$	6,601,589
December 31, 2024
Construction	$	—	$	—	$	—	$	—	$	328,388	$	328,388
Commercial real estate, other	1,300		1,585		6,008		8,893		2,147,120		2,156,013
Commercial and industrial	1,651		583		4,551		6,785		1,340,860		1,347,645
Premium finance	3,863		456		4,947		9,266		260,169		269,435
Leases	10,941		5,241		9,575		25,757		380,841		406,598
Residential real estate	11,481		3,038		5,271		19,790		815,311		835,101
Home equity lines of credit	1,473		317		1,093		2,883		229,778		232,661
Consumer, indirect	7,568		1,522		1,326		10,416		659,441		669,857
Consumer, direct	884		113		138		1,135		109,917		111,052
Deposit account overdrafts	—		—		—		—		1,253		1,253
Total loans, at amortized cost	$	39,161	$	12,855	$	32,909	$	84,925	$	6,273,078	$	6,358,003

Delinquency trends improved slightly, as 99.1% of Peoples' loan portfolio was considered “current” at June 30, 2025, compared to 98.7% at December 31, 2024.

Pledged Loans

Peoples has pledged certain loans secured by one-to-four family and multifamily residential mortgages, home equity lines of credit and commercial real estate loans under a blanket collateral agreement to secure borrowings from the FHLB. Peoples also has pledged eligible commercial and industrial loans to secure borrowings with the FRB. Loans pledged are summarized as follows:


(Dollars in thousands)	June 30, 2025		December 31, 2024
Loans pledged to FHLB	$	1,221,706	$	1,218,496
Loans pledged to FRB	497,496		527,989

Credit Quality Indicators

As discussed in "Note 1 Summary of Significant Accounting Policies" of the Notes to the Consolidated Financial Statements included in Peoples' 2024 Form 10-K, Peoples categorizes the majority of its loans into risk categories based upon an established risk grading matrix using a scale of 1 to 8. Loan grades are assigned at the time a new loan or lending commitment is extended by Peoples and may be changed at any time when circumstances warrant. Commercial loans to borrowers with an aggregate unpaid principal balance in excess of $1.0 million are reviewed at least on an annual basis for possible credit deterioration. Commercial leases, as well as loan relationships whose aggregate credit exposure to Peoples is equal to or less than $1.0 million, are reviewed on an event driven basis. Triggers for review include knowledge of adverse events affecting the borrower's business, receipt of financial statements

indicating deteriorating credit quality or other similar events. Adversely classified loans are reviewed on a quarterly basis. A description of the general characteristics of the risk grades used by Peoples, follows:

“Pass” (grades 1 through 4): Loans in this risk category involve borrowers of acceptable-to-strong credit quality and risk who have the apparent ability to satisfy their loan obligations. Loans in this risk category would possess sufficient mitigating factors, such as adequate collateral or strong guarantors possessing the capacity to repay the loan if required, for any weakness that may exist.

“Special Mention” (grade 5): Loans in this risk grade are the equivalent of the regulatory definition of “Other Assets Especially Mentioned.” Loans in this risk category possess some credit deficiency or potential weakness, which requires a high level of management attention. Potential weaknesses include declining trends in operating earnings and cash flows and/or reliance on a secondary source of repayment. If left uncorrected, these potential weaknesses may result in noticeable deterioration of the repayment prospects for the loan or in Peoples' credit position.

“Substandard” (grade 6): Loans in this risk grade are inadequately protected by the borrower's current financial condition and payment capability or the collateral pledged, if any. Loans so classified have one or more well-defined weaknesses that jeopardize the orderly repayment of the loans. They are characterized by the distinct possibility that Peoples will sustain some loss if the weaknesses are not corrected.

“Doubtful” (grade 7): Loans in this risk grade have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or orderly repayment in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable. Possibility of loss is extremely high, but because of certain important and reasonably specific factors that may work to the advantage and strengthening of the exposure, classification of each of these loans as an estimated loss is deferred until its more exact status may be determined.

“Loss” (grade 8): Loans in this risk grade are considered to be non-collectible and of such little value that their continuance as bankable assets is not warranted. This does not mean a loan has absolutely no recovery value, but rather it is neither practical nor desirable to defer writing off the loan, even though partial recovery may be obtained in the future. Charge-offs against the allowance for credit losses are taken during the period in which the loan becomes uncollectible. Consequently, Peoples typically does not maintain a recorded investment in loans within this category.

Consumer loans and other smaller-balance loans are evaluated and categorized as "substandard," "doubtful" or "loss" based upon the regulatory definition of these classes and consistent with regulatory requirements. Leases are categorized as "special mention", "substandard", "doubtful", or "loss" based upon delinquency status and the prospect of collecting the remaining net investment balance owed under the lease. All other loans not evaluated individually, nor meeting the regulatory conditions to be categorized as described above, would be considered as being "not rated."

The following table summarizes the risk category of loans within Peoples' loan portfolio, including acquired loans, based upon the most recent analysis performed at June 30, 2025:



	Term Loans at Amortized Cost by Origination Year														Revolving Loans Converted to Term
(Dollars in thousands)	2025		2024		2023		2022		2021		Prior		Revolving Loans				Total Loans
Construction
Pass	$	27,127	$	111,863	$	153,579	$	34,756	$	6,531	$	4,812	$	—	$	512	$	338,668

Substandard	—		—		1,137		1,508		—		—		—		—		2,645


Total	27,127		111,863		154,716		36,264		6,531		4,812		—		512		341,313
Current period gross charge-offs (a)	—		—		—		—		—		—						—
Commercial real estate, other
Pass	164,160		146,985		303,272		375,546		371,508		736,658		41,456		1,960		2,139,585
Special mention	84		412		2,300		10,038		10,284		28,900		2,213		47		54,231
Substandard	—		144		1,401		5,289		9,840		35,310		565		2,449		52,549
Doubtful	—		—		—		—		—		1,849		—		—		1,849

Total	164,244		147,541		306,973		390,873		391,632		802,717		44,234		4,456		2,248,214
Current period gross charge-offs (a)	—		—		—		156		—		94						250
Commercial and industrial
Pass	146,063		262,641		193,126		114,098		122,694		221,633		243,170		1,663		1,303,425



	Term Loans at Amortized Cost by Origination Year							Revolving Loans Converted to Term
(Dollars in thousands)	2025	2024	2023	2022	2021	Prior	Revolving Loans		Total Loans
Special mention	751	69	5,419	3,633	6,405	6,940	39,428	—	62,645
Substandard	—	4,572	3,679	10,541	7,642	3,825	8,992	6,193	39,251
Doubtful	—	—	—	2,015	—	46	—	—	2,061

Total	146,814	267,282	202,224	130,287	136,741	232,444	291,590	7,856	1,407,382
Current period gross charge-offs (a)	—	19	161	25	157	574			936
Premium Finance
Pass	219,845	57,030	699	48	—	—	—	—	277,622




Total	219,845	57,030	699	48	—	—	—	—	277,622
Current period gross charge-offs (a)	—	72	68	24	—	—			164
Leases
Pass	99,433	121,736	100,984	42,539	16,020	4,921	—	—	385,633
Special mention	125	760	912	434	322	—	—	—	2,553
Substandard	73	1,230	2,906	1,492	414	2	—	—	6,117
Doubtful	—	1,446	2,358	1,728	208	9	—	—	5,749

Total	99,631	125,172	107,160	46,193	16,964	4,932	—	—	400,052
Current period gross charge-offs (a)	—	1,028	4,166	4,151	945	463			10,753
Residential real estate
Pass	56,495	72,857	62,916	81,391	123,016	470,942	—	—	867,617

Substandard	—	208	882	389	899	7,909	—	—	10,287

Loss	—	5	4	—	—	55	—	—	64
Total	56,495	73,070	63,802	81,780	123,915	478,906	—	—	877,968
Current period gross charge-offs (a)	—	—	27	8	27	80			142
Home equity lines of credit
Pass	24,575	54,046	35,275	36,509	25,521	64,913	22	3,385	240,861

Substandard	—	—	75	250	16	573	—	—	914
Loss	—	—	—	—	—	10	—	—	10
Total	24,575	54,046	35,350	36,759	25,537	65,496	22	3,385	241,785
Current period gross charge-offs (a)	—	—	12	—	—	—			12
Consumer, indirect
Pass	159,626	204,525	140,708	113,985	40,060	30,557	—	—	689,461

Substandard	224	661	651	706	437	397	—	—	3,076

Loss	53	37	17	—	2	28	—	—	137
Total	159,903	205,223	141,376	114,691	40,499	30,982	—	—	692,674
Current period gross charge-offs (a)	194	1,166	1,206	685	210	98			3,559
Consumer, direct
Pass	34,502	30,376	19,898	16,031	6,840	5,686	—	—	113,333



	Term Loans at Amortized Cost by Origination Year													Revolving Loans Converted to Term
(Dollars in thousands)	2025		2024		2023		2022		2021		Prior		Revolving Loans		Total Loans
Substandard	—		27		89		60		43		52		—	—	271

Loss	—		1		1		9		—		—		—	—	11
Total	34,502		30,404		19,988		16,100		6,883		5,738		—	—	113,615
Current period gross charge-offs (a)	21		89		49		70		13		9				251
Deposit account overdrafts	964		—		—		—		—		—		—	—	964
Current period gross charge-offs (a)	522		—		—		—		—		—				522
Total loans, at amortized cost	934,100		1,071,631		1,032,288		852,995		748,702		1,626,027		335,846	16,209	6,601,589
Total current period gross charge-offs (a)	$	737	$	2,374	$	5,689	$	5,119	$	1,352	$	1,318			$	16,589
(a) Current period gross charge-offs are for the six months ended as of June 30, 2025.

The following table summarizes the risk category of loans within Peoples' loan portfolio, including acquired loans, based upon the then most recent analysis performed at December 31, 2024:



	Term Loans at Amortized Cost by Origination Year
(Dollars in thousands)	2024		2023		2022		2021		2020		Prior		Revolving Loans		Revolving Loans Converted to Term		Total Loans
Construction
Pass	$	69,862	$	162,605	$	47,133	$	30,592	$	1,845	$	13,540	$	—	$	—	$	325,577
Special mention	—		—		—		—		—		115		—		—		115
Substandard	—		1,161		1,535		—		—		—		—		—		2,696


Total	69,862		163,766		48,668		30,592		1,845		13,655		—		—		328,388
Current period gross charge-offs (a)	—		—		—		—		—		—						—
Commercial real estate, other
Pass	130,971		219,105		366,256		337,905		201,367		751,415		41,122		—		2,048,141
Special mention	271		2,923		11,876		7,197		5,107		10,689		288		—		38,351
Substandard	145		1,073		2,460		18,851		9,234		37,136		612		—		69,511
Doubtful	—		—		—		—		—		10		—		—		10

Total	131,387		223,101		380,592		363,953		215,708		799,250		42,022		—		2,156,013
Current period gross charge-offs (a)	—		—		376		—		—		55						431
Commercial and industrial
Pass	311,631		202,929		134,558		148,288		66,102		152,143		229,821		4,779		1,245,472
Special mention	779		9,019		10,886		4,449		12,049		13,537		19,465		—		70,184
Substandard	200		99		4,791		11,429		3,850		4,430		5,045		49		29,844
Doubtful	—		—		1,987		—		—		158		—		—		2,145

Total	312,610		212,047		152,222		164,166		82,001		170,268		254,331		4,828		1,347,645
Current period gross charge-offs (a)	—		14		—		17		105		532						668
Premium finance
Pass	265,504		3,837		94		—		—		—		—		—		269,435
Total	265,504		3,837		94		—		—		—		—		—		269,435



	Term Loans at Amortized Cost by Origination Year
(Dollars in thousands)	2024		2023		2022		2021		2020		Prior		Revolving Loans	Revolving Loans Converted to Term	Total Loans
Current period gross charge-offs (a)	67		109		33		—		—		—				209
Leases
Pass	175,449		125,664		61,064		24,181		4,661		2,153		—	—	393,172
Special mention	791		1,529		1,140		365		5		—		—	—	3,830
Substandard	351		2,108		1,777		193		8		—		—	—	4,437
Doubtful	170		2,127		1,859		624		110		269		—	—	5,159

Total	176,761		131,428		65,840		25,363		4,784		2,422		—	—	406,598
Current period gross charge-offs (a)	1,315		5,623		5,421		2,308		301		138				15,106
Residential real estate
Pass	77,130		66,712		85,045		128,359		52,090		414,574		—	—	823,910

Substandard	321		1,088		161		980		306		8,087		—	—	10,943

Loss	—		4		—		—		—		244		—	—	248
Total	77,451		67,804		85,206		129,339		52,396		422,905		—	—	835,101
Current period gross charge-offs (a)	—		—		46		5		—		237				288
Home equity lines of credit
Pass	54,724		37,417		37,752		27,430		16,583		57,303		24	731	231,233

Substandard	—		138		163		16		34		1,069		—	—	1,420

Loss	—		—		—		—		—		8		—	—	8
Total	54,724		37,555		37,915		27,446		16,617		58,380		24	731	232,661
Current period gross charge-offs (a)	—		—		—		—		—		11				11
Consumer, indirect
Pass	239,584		176,115		148,210		56,846		30,231		16,129		—	—	667,115

Substandard	269		557		681		618		312		251		—	—	2,688

Loss	14		—		16		14		—		10		—	—	54
Total	239,867		176,672		148,907		57,478		30,543		16,390		—	—	669,857
Current period gross charge-offs (a)	497		2,207		1,880		691		141		763				6,179
Consumer, direct
Pass	45,978		25,605		21,544		9,614		4,180		3,884		—	—	110,805

Substandard	18		65		46		29		4		73		—	—	235

Loss	—		4		—		—		—		8		—	—	12
Total	45,996		25,674		21,590		9,643		4,184		3,965		—	—	111,052
Current period gross charge-offs (a)	2		154		212		51		12		247				678
Deposit account overdrafts	1,253		—		—		—		—		—		—	—	1,253
Current period gross charge-offs (a)	1,542		$	—	$	—	$	—	$	—	$	—			1,542
Total loans, at amortized cost	1,375,415		1,041,884		941,034		807,980		408,078		1,487,235		296,377	5,559	6,358,003
Current period gross charge-offs (a)	$	3,423	$	8,107	$	7,968	$	3,072	$	559	$	1,983			$	25,112
(a) Current period gross charge-offs are for the year ended as of December 31, 2024.

Collateral Dependent Loans

Peoples has certain loans for which repayment is dependent upon the operation or sale of collateral, as the borrower is experiencing financial difficulty. The underlying collateral can vary based upon the type of loan. The following provides more detail about the types of collateral that secure collateral dependent loans:

•Construction loans are typically secured by owner occupied commercial real estate or non-owner occupied investment real estate. Typically, owner occupied construction loans are secured by office buildings, warehouses, manufacturing facilities, and other commercial and industrial properties that are in process of construction. Non-owner occupied commercial construction loans are generally secured by multi-family complexes, warehouse buildings, industrial buildings, land under development, and other commercial real estate in process of construction.

•Commercial real estate loans can be secured by either owner occupied commercial real estate or non-owner occupied investment commercial real estate. Typically, owner occupied commercial real estate loans are secured by office buildings, warehouses, manufacturing facilities, and other commercial and industrial properties occupied by operating companies. Non-owner occupied commercial real estate loans are generally secured by multifamily complexes, retail facilities, office buildings and complexes, warehouses, industrial buildings, land under development, as well as other commercial real estate.

•Commercial and industrial loans are generally secured by equipment, inventory, accounts receivable, and other commercial property.

•Residential real estate loans are typically secured by first mortgages, and in some cases could be secured by a second mortgage, on residential real estate property.

•Home equity lines of credit are generally secured by second mortgages on residential real estate property.

•Consumer loans are generally secured by automobiles, motorcycles, recreational vehicles and other personal property. Some consumer loans are unsecured and have no underlying collateral.

•Leases are most often secured by commercial equipment and other essential business assets.

•Premium finance loans are secured by the unearned portion of the insurance premium being financed.

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


(Dollars in thousands)	June 30, 2025		December 31, 2024


Commercial real estate, other	$	1,839		$	2,764

Leases	3,243			652
Commercial and industrial	2,015			959




Total collateral dependent loans	$	7,097		$	4,375

The increase in collateral dependent loans at June 30, 2025, compared to December 31, 2024, was primarily driven by the addition of three NSL leases which totaled approximately $1.9 million.

Modifications for Borrowers Experiencing Financial Difficulty

As part of Peoples' loss mitigation activities, Peoples may agree to modify the contractual terms of a loan to a borrower experiencing financial difficulty. The most common modifications to the contractual terms of a loan to a borrower experiencing financial difficulty include an extension of the maturity date, a reduction in the interest rate for the remaining life of the loan, a temporary period of interest-only payments, and a reduction in the contractual payment amount for either a short period or the remaining term of the loan.

In addition to loan modifications, Peoples also provides other loss mitigation options, such as forbearance and repayment plans, to assist borrowers who experience financial difficulties. In assessing whether or not a borrower is experiencing financial difficulty, Peoples considers information currently available regarding the financial condition of the borrower. This information includes, but is not limited to, whether (1) the borrower is currently in payment default on any of the borrower's debt; (2) a payment default is probable in the foreseeable future without the modification; (3) the borrower has declared or is in the process of declaring bankruptcy; and (4) the borrower's projected cash flow is insufficient to satisfy contractual payments due under the original terms of the loan without a modification.

The allowance for credit losses for loans modified for borrowers experiencing financial difficulty is determined based on the allowance for credit losses policy as described in Note 1 Summary of Significant Accounting Policies" of the Notes to the Consolidated Financial Statements included in Peoples' 2024 Form 10-K.

The following tables display the amortized cost of loans that were restructured during the three and six months ended June 30, 2025 and June 30, 2024, presented by loan classification.


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

During the Three Months Ended June 30, 2025

Commercial real estate	$	—	$	2,602	$	2,602	0.12	%
Commercial and industrial	—		2,477		2,477		0.18	%

Residential real estate	—		192		192		0.02	%




Total	$	—	$	5,271	$	5,271	0.08	%


During the Three Months Ended June 30, 2024


Commercial and industrial	$	—	$	687	$	687	0.05	%
Leasing	174		—		174		0.04	%

Home equity lines of credit	—		64		64		0.03	%
Consumer, indirect	—		8		8		—	%


Total	$	174	$	759	$	933	0.01	%
(a) Based on the amortized cost basis as of period end, divided by the period end amortized cost basis of the corresponding class of financing receivable. (b) The table presented above excludes loans that were paid off or otherwise no longer included in the loan portfolio as of period end. (c) Each with --% is considered not meaningful.


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

During the Six Months Ended June 30, 2025

Commercial real estate	$	—	$	4,441	$	—	$	4,441	0.20	%
Commercial and industrial	—		8,638		—		8,638		0.61	%
Leasing	10		—		53		63		0.02	%
Residential real estate	—		192		—		192		0.02	%




Total	$	10	$	13,271	$	53	$	13,334	0.20	%


During the Six Months Ended June 30, 2024

Commercial real estate	—		561		—		561		0.03	%
Commercial and industrial	—		11,171		—		11,171		0.89	%
Leasing	199		—		—		199		0.05	%
Residential real estate	—		76		—		76		0.01	%
Home equity lines of credit	—		64		—		64		0.03	%
Consumer, indirect	—		8		—		8		—	%


Total	$	199	$	11,880	$	—	$	12,079	0.19	%
(a) Based on the amortized cost basis as of period end, divided by the period end amortized cost basis of the corresponding class of financing receivable. (b) The table presented above excludes loans that were paid off or otherwise no longer included in the loan portfolio as of period end. (c) Each with --% is considered not meaningful.

The following tables summarize the financial impacts of loan modifications and payment deferrals made to loans during the three and six months ended June 30, 2025 and June 30, 2024, presented by loan classification.


						Weighted-Average Term Extension (in months)
During the Three Months Ended June 30, 2025

Commercial real estate						4
Commercial and industrial						5

Residential real estate						174




During the Three Months Ended June 30, 2024


Commercial and industrial						28


Home equity lines of credit						120
Consumer, indirect						2


						Weighted-Average Term Extension (in months)
During the Six Months Ended June 30, 2025

Commercial real estate						4
Commercial and industrial						7

Residential real estate						174




During the Six Months Ended June 30, 2024

Commercial real estate						6
Commercial and industrial						7
Leasing						9
Residential real estate						2
Home equity lines of credit						120
Consumer, indirect						2

The following tables display the amortized cost of loans that received a completed modification or payment deferral within the previous 12 months and that had a payment default in the periods presented. For purposes of this disclosure, Peoples defines loans that had a payment default as loans that were 90 days or more past due following a modification.


	Term Extension(a)
For the Three Months Ended June 30, 2025

Commercial real estate	$	494







Total loans that subsequently defaulted	$	494

For the Six Months Ended June 30, 2025

Commercial real estate	$	494
Commercial and industrial	18
Leasing	100





Total loans that subsequently defaulted	$	612

For the Three Months Ended June 30, 2024

Commercial real estate	$	193
Commercial and industrial	28

Residential real estate	76




Total loans that subsequently defaulted	$	297

For the Six Months Ended June 30, 2024

Commercial real estate	$	193
Commercial and industrial	31

Residential real estate	76




Total loans that subsequently defaulted	$	300


(a) Represents the sum of amortized cost and gross charge-off as of period end. Excludes loans that liquidated either through foreclosure, deed-in-lieu of foreclosure, or a short sale.

The following table displays an aging analysis of loans that were modified during the 12 months prior to June 30, 2025 and June 30, 2024, respectively, presented by classification and class of financing receivable.


As of June 30, 2025
(Dollars in thousands)	30-59 Days Delinquent		60-89 Days Delinquent		90+ Days Delinquent		Total Delinquent		Current		Total

Commercial real estate	$	—	$	—	$	494	$	494	$	4,441	$	4,935
Commercial and industrial	—		—		18		18		8,823		8,841
Leasing	—		—		100		100		65		165
Residential real estate	—		—		—		—		207		207
Home equity lines of credit	44		—		—		44		51		95
Consumer, indirect	—		—		10		10		—		10


Total loans modified(a)	$	44	$	—	$	622	$	666	$	13,587	$	14,253
(a) Represents the amortized cost basis as of period end.


As of June 30, 2024
(Dollars in thousands)	30-59 Days Delinquent		60-89 Days Delinquent		90+ Days Delinquent		Total Delinquent		Current		Total
Construction	$	—	$	70	$	—	$	70	$	—	$	70
Commercial real estate	—		—		193		193		2,321		2,514
Commercial and industrial	—		—		31		31		12,583		12,614
Leasing	—		—		—		—		199		199
Residential real estate	—		—		76		76		25		101
Home equity lines of credit	—		—		—		—		122		122
Consumer, indirect	—		—		—		—		8		8


Total loans modified(a)	$	—	$	70	$	300	$	370	$	15,258	$	15,628

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

Allowance for Credit Losses

As discussed in "Note 1 Summary of Significant Accounting Policies" of the Notes to the Consolidated Financial Statements included in Peoples' 2024 Form 10-K, Peoples estimates the allowance for credit losses using relevant available information, from both internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. In management's estimation of expected credit losses, Peoples uses a one-year reasonable and supportable period across all segments. Following the reasonable and supportable period, Peoples reverts the macroeconomic variables to their long run average over a four-quarter reversion period.

Changes in the allowance for credit losses for the three and six months ended June 30, 2025 and June 30, 2024 are summarized below:


(Dollars in thousands)	Beginning Balance, March 31, 2025		Provision for (Recovery of) Credit Losses (a)		Charge-offs		Recoveries		Ending Balance, June 30, 2025
Construction	$	1,156	$	191	$	—	$	—	$	1,347
Commercial real estate, other	17,155		24		(35)		—		17,144
Commercial and industrial	12,783		5,610		(556)		17		17,854
Premium finance	646		238		(93)		3		794
Leases	13,575		10,896		(5,099)		261		19,633
Residential real estate	6,786		(723)		—		50		6,113
Home equity lines of credit	1,863		(37)		(12)		—		1,814
Consumer, indirect	8,696		191		(1,693)		449		7,643
Consumer, direct	2,474		(144)		(96)		14		2,248
Deposit account overdrafts	98		167		(245)		71		91
Total	$	65,232	$	16,413	$	(7,829)	$	865	$	74,681

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


(Dollars in thousands)	Beginning Balance, March 31, 2024		Provision for (Recovery of) Credit Losses (a)		Charge-offs		Recoveries		Ending Balance, June 30, 2024
Construction	$	701	$	(28)	$	—	$	—	$	673
Commercial real estate, other	21,788		(1,856)		—		(80)		19,852
Commercial and industrial	10,581		408		(56)		10		10,943
Premium finance	607		207		(55)		4		763
Leases	12,889		4,533		(2,377)		173		15,218
Residential real estate	5,866		69		(64)		68		5,939
Home equity lines of credit	1,689		57		(9)		—		1,737
Consumer, indirect	8,301		1,803		(1,567)		117		8,654
Consumer, direct	2,279		179		(141)		15		2,332
Deposit account overdrafts	121		286		(338)		67		136
Total	$	64,822	$	5,658	$	(4,607)	$	374	$	66,247

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


(Dollars in thousands)	Beginning Balance, December 31, 2024		Provision for (Recovery of) Credit Losses (a)		Charge-offs		Recoveries		Ending Balance, June 30, 2025
Construction	$	878	$	469	$	—	$	—	$	1,347
Commercial real estate, other	16,256		1,134		(250)		4		17,144
Commercial and industrial	13,283		5,484		(936)		23		17,854
Premium finance	662		287		(164)		9		794
Leases	12,893		16,987		(10,753)		506		19,633
Residential real estate	6,491		(335)		(142)		99		6,113
Home equity lines of credit	1,792		34		(12)		—		1,814
Consumer, indirect	8,576		1,967		(3,559)		659		7,643
Consumer, direct	2,396		69		(251)		34		2,248
Deposit account overdrafts	121		322		(522)		170		91
Total	$	63,348	$	26,418	$	(16,589)	$	1,504	$	74,681

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



(Dollars in thousands)	Beginning Balance, December 31, 2023		Provision for (Recovery of) Credit Losses (a)		Charge-offs		Recoveries		Ending Balance, June 30, 2024
Construction	$	699	$	(26)	$	—	$	—	$	673
Commercial real estate, other	20,915		(854)		(212)		3		19,852
Commercial and industrial	10,490		727		(291)		17		10,943
Premium finance	484		376		(109)		12		763
Leases	10,850		7,630		(3,647)		385		15,218
Residential real estate	5,937		(5)		(144)		151		5,939
Home equity lines of credit	1,588		151		(9)		7		1,737
Consumer, indirect	8,590		2,904		(3,028)		188		8,654
Consumer, direct	2,343		332		(367)		24		2,332
Deposit account overdrafts	115		554		(674)		141		136
Total	$	62,011	$	11,789	$	(8,481)	$	928	$	66,247

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

During the second quarter of 2025, Peoples recorded a total provision for credit losses on loans of $16.4 million, which 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. Net charge-offs for the second quarter of 2025 were $7.0 million, primarily driven by our North Star Leasing division. The increase in the allowance for credit losses at June 30, 2025 when compared to at March 31, 2025 was primarily driven by explanations (ii) - (vi) described above.

During the second quarter of 2024, Peoples recorded a provision for credit losses of $5.7 million, which was driven by (i) higher net charge-offs, (ii) an increase in reserves for individually analyzed loans and leases, and (iii) loan growth. Net charge-offs for the second quarter of 2024 were $4.2 million, primarily driven by an increase in charge-offs on leases originated by our North Star Leasing division, partially offset by decreases in net charge-offs on commercial and industrial loans and other commercial real estate loans.

Peoples had recorded an allowance for unfunded commitments of $2.4 million and $2.0 million as of June 30, 2025 and December 31, 2024, respectively. The allowance for unfunded commitments (also referred to as "unfunded commitment liability") is presented in the “Accrued expenses and other liabilities” line of the Unaudited Consolidated Balance Sheets. The change in the allowance for unfunded commitments is also reflected in the "Provision for (recovery of) credit losses" line of the Unaudited Consolidated Statements of Operations.