v3.26.1
Loans and Leases
 6 Months Ended
Jun. 30, 2026
Receivables [Abstract]  
Loans and Leases Loans and Leases
Peoples' loan portfolio consists of various types of loans and leases originated primarily as a result of lending opportunities within Peoples' footprint. Peoples also originates insurance premium finance loans nationwide through its Peoples Premium Finance division, and originates leases nationwide through its North Star Leasing ("NSL") division and its Vantage Financial, LLC ("Vantage") subsidiary.
The major classifications of loan balances (in each case, net of deferred fees and costs) excluding loans held for sale, were as follows:
(Dollars in thousands)June 30,
2026		December 31, 2025
Construction$294,350 $300,941 
Commercial real estate, other2,283,163 2,363,967 
Commercial and industrial1,689,817 1,535,755 
Premium finance266,015 253,075 
Leases353,952 365,649 
Residential real estate846,475 861,722 
Home equity lines of credit273,965 253,864 
Consumer, indirect693,529 700,582 
Consumer, direct119,273 120,338 
Deposit account overdrafts1,041 1,014 
Total loans, at amortized cost$6,821,580 $6,756,907 
The table above includes net deferred loan origination costs of $18.9 million and $20.0 million at June 30, 2026 and at December 31, 2025, respectively. The remaining unamortized net discount included in the amortized cost of loans and leases was $7.2 million and $9.7 million at June 30, 2026 and at December 31, 2025, respectively.
Accrued interest receivable is not included within the loan balances, but is presented in the “Other assets” line of the Unaudited Consolidated Balance Sheets, with no recorded allowance for credit losses. Total interest receivable on loans was $22.2 million at June 30, 2026 and $25.0 million at December 31, 2025.
Nonaccrual and Past Due Loans
A loan is considered past due if any required principal and interest payments have not been received as of the date such payments were required to be made under the terms of the loan agreement. A loan may be placed on nonaccrual status regardless of whether or not such loan is considered past due.
The amortized cost of loans on nonaccrual status and of loans delinquent for 90 days or more and accruing was as follows:
June 30, 2026December 31, 2025
(Dollars in thousands)
Nonaccrual (a)
Accruing Loans 90+ Days Past Due
Nonaccrual (a)
Accruing Loans 90+ Days Past Due
Construction$293 $— $— $— 
Commercial real estate, other6,802 3,874 4,056 579 
Commercial and industrial4,546 85 8,045 126 
Premium finance— 1,793 573 2,477 
Leases8,145 — 11,063 542 
Residential real estate8,978 1,655 8,556 1,937 
Home equity lines of credit1,550 193 1,507 69 
Consumer, indirect2,594 93 2,718 286 
Consumer, direct193 145 368 140 
Total loans, at amortized cost$33,101 $7,838 $36,886 $6,156 
(a) There were $2.4 million and $1.8 million of nonaccrual loans for which there was no allowance for credit losses at June 30, 2026 and at December 31, 2025, respectively.
During the first six months of 2026, nonaccrual loans decreased compared to at December 31, 2025, which was primarily due to decreases in nonaccrual commercial and industrial loans and leases, partially offset by an uptick in nonaccrual other commercial real estate loans. The increase in accruing loans 90+ days past due at June 30, 2026, when compared to at December 31, 2025, was primarily due to other commercial real estate loans, driven by two loans totaling $3.8 million.
The following table presents the aging of the amortized cost of past due loans:
Loans Past Due
Current
Loans
Total
Loans
(Dollars in thousands)30 - 59 days60 - 89 days90 + DaysTotal
June 30, 2026
Construction$293 $— $— $293 $294,057 $294,350 
Commercial real estate, other1,141 1,816 9,806 12,763 2,270,400 2,283,163 
Commercial and industrial1,787 430 4,523 6,740 1,683,077 1,689,817 
Premium finance1,165 544 1,793 3,502 262,513 266,015 
Leases1,627 4,138 7,380 13,145 340,807 353,952 
Residential real estate2,834 4,151 4,788 11,773 834,702 846,475 
Home equity lines of credit1,235 527 1,125 2,887 271,078 273,965 
Consumer, indirect6,261 1,626 1,379 9,266 684,263 693,529 
Consumer, direct750 121 200 1,071 118,202 119,273 
Deposit account overdrafts— — — — 1,041 1,041 
Total loans, at amortized cost$17,093 $13,353 $30,994 $61,440 $6,760,140 $6,821,580 
December 31, 2025
Construction$— $— $— $— $300,941 $300,941 
Commercial real estate, other1,760 4,066 3,664 9,490 2,354,477 2,363,967 
Commercial and industrial1,600 1,329 7,780 10,709 1,525,046 1,535,755 
Premium finance2,767 2,956 3,050 8,773 244,302 253,075 
Leases9,966 3,560 11,187 24,713 340,936 365,649 
Residential real estate13,821 3,035 5,767 22,623 839,099 861,722 
Home equity lines of credit2,160 402 981 3,543 250,321 253,864 
Consumer, indirect8,752 1,726 1,550 12,028 688,554 700,582 
Consumer, direct752 165 431 1,348 118,990 120,338 
Deposit account overdrafts— — — — 1,014 1,014 
Total loans, at amortized cost$41,578 $17,239 $34,410 $93,227 $6,663,680 $6,756,907 
Delinquency trends improved slightly, as 99.1% of Peoples' loan portfolio was considered “current” at June 30, 2026, compared to 98.6% at December 31, 2025.
Pledged Loans
Peoples has pledged certain loans secured by one-to-four family and multifamily residential mortgages, home equity lines of credit and commercial real estate loans under a blanket collateral agreement to secure borrowings from the FHLB. Peoples also has pledged eligible commercial and industrial loans to secure borrowings with the FRB. Loans pledged are summarized as follows:
(Dollars in thousands)June 30, 2026December 31, 2025
Loans pledged to FHLB$1,271,534 $1,347,242 
Loans pledged to FRB691,432 624,503 
Credit Quality Indicators
As discussed in "Note 1 Summary of Significant Accounting Policies" of the Notes to the Consolidated Financial Statements included in Peoples' 2025 Form 10-K, Peoples categorizes the majority of its loans into risk categories based upon an established risk grading matrix using a scale of 1 to 8. Loan grades are assigned at the time a new loan or lending commitment is extended by Peoples and may be changed at any time when circumstances warrant. Commercial loans to borrowers with an aggregate unpaid principal balance in excess of $1.0 million are reviewed at least on an annual basis for possible credit deterioration. Commercial leases, as well as loan relationships whose aggregate credit exposure to Peoples is equal to or less than $1.0 million, are reviewed on an event driven basis. Triggers for review include knowledge of adverse events affecting the borrower's business, receipt of financial statements indicating deteriorating credit quality or other similar events. Adversely classified loans are reviewed on a quarterly basis. A description of the general characteristics of the risk grades used by Peoples, follows:
“Pass” (grades 1 through 4): Loans in this risk category involve borrowers of acceptable-to-strong credit quality and risk who have the apparent ability to satisfy their loan obligations. Loans in this risk category would possess sufficient mitigating factors, such as adequate collateral or strong guarantors possessing the capacity to repay the loan if required, for any weakness that may exist.
“Special Mention” (grade 5): Loans in this risk grade are the equivalent of the regulatory definition of “Other Assets Especially Mentioned.” Loans in this risk category possess some credit deficiency or potential weakness, which requires a high level of management attention. Potential weaknesses include declining trends in operating earnings and cash flows and/or reliance on a secondary source of repayment. If left uncorrected, these potential weaknesses may result in noticeable deterioration of the repayment prospects for the loan or in Peoples' credit position.
“Substandard” (grade 6): Loans in this risk grade are inadequately protected by the borrower's current financial condition and payment capability or the collateral pledged, if any. Loans so classified have one or more well-defined weaknesses that jeopardize the orderly repayment of the loans. They are characterized by the distinct possibility that Peoples will sustain some loss if the weaknesses are not corrected.
“Doubtful” (grade 7): Loans in this risk grade have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or orderly repayment in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable. Possibility of loss is extremely high, but because of certain important and reasonably specific factors that may work to the advantage and strengthening of the exposure, classification of each of these loans as an estimated loss is deferred until its more exact status may be determined.
“Loss” (grade 8): Loans in this risk grade are considered to be non-collectible and of such little value that their continuance as bankable assets is not warranted. This does not mean a loan has absolutely no recovery value, but rather it is neither practical nor desirable to defer writing off the loan, even though partial recovery may be obtained in the future. Charge-offs against the allowance for credit losses are taken during the period in which the loan becomes uncollectible. Consequently, Peoples typically does not maintain a recorded investment in loans within this category.
Consumer loans and other smaller-balance loans are evaluated and categorized as "substandard," "doubtful" or "loss" based upon the regulatory definition of these classes and consistent with regulatory requirements. Leases are categorized as "special mention", "substandard", "doubtful", or "loss" based upon delinquency status and the prospect of collecting the remaining net investment balance owed under the lease. All other loans not evaluated individually, nor meeting the regulatory conditions to be categorized as described above, would be considered as being "not rated."
The following table summarizes the risk category of loans within Peoples' loan portfolio, including acquired loans, based upon the most recent analysis performed at June 30, 2026:
Term Loans at Amortized Cost by Origination YearRevolving Loans Converted to Term
(Dollars in thousands)20262025202420232022PriorRevolving Loans
Total
Loans
Construction

  Pass$24,141 $98,544 $94,125 $47,697 $940 $14,808 $— $— $280,255 
  Substandard— — 11,260 1,088 1,454 293 — — 14,095 
     Total24,141 98,544 105,385 48,785 2,394 15,101 — — 294,350 
Current period gross charge-offs (a)— — — — — — — 
Commercial real estate, other

  Pass106,340 347,491 168,667 284,484 323,049 865,560 40,884 — 2,136,475 
  Special mention— 1,018 32,296 33,515 1,584 8,480 — — 76,893 
  Substandard6,181 — 7,705 1,477 4,453 49,859 120 — 69,795 
     Total112,521 348,509 208,668 319,476 329,086 923,899 41,004 — 2,283,163 
Current period gross charge-offs (a)— — — — — 167 167 
Commercial and industrial
  Pass280,400 327,484 194,878 102,217 64,396 359,988 271,313 2,461 1,600,676 
  Special mention238 4,619 16,728 23 610 588 31,374 — 54,180 
  Substandard688 1,135 3,199 218 7,633 13,930 8,134 740 34,937 
  Doubtful— — — — — 24 — — 24 
Term Loans at Amortized Cost by Origination YearRevolving Loans Converted to Term
(Dollars in thousands)20262025202420232022PriorRevolving Loans
Total
Loans
     Total281,326 333,238 214,805 102,458 72,639 374,530 310,821 3,201 1,689,817 
Current period gross charge-offs (a)171 — 64 104 22 126 487 
Premium Finance
Pass215,165 50,332 517 1 — — — — 266,015 
Total215,165 50,332 517 1 — — — — 266,015 
Current period gross charge-offs (a)— 44 71 2 — — 117 
Leases
Pass83,473 111,837 75,718 53,292 15,793 4,550 — — 344,663 
Special mention79 391 657 333 205 183 — — 1,848 
Substandard55 364 1,118 1,075 401 82 — — 3,095 
Doubtful— 133 578 2,515 915 205 — — 4,346 
Total83,607 112,725 78,071 57,215 17,314 5,020 — — 353,952 
Current period gross charge-offs (a)— 685 2,171 4,679 895 602 9,032 
Residential real estate
Pass38,655 100,419 62,165 52,149 74,059 509,033 — — 836,480 
Substandard— 455 458 1,079 574 7,255 — — 9,821 
Loss— 12 8 — 60 94 — — 174 
     Total38,655 100,886 62,631 53,228 74,693 516,382 — — 846,475 
Current period gross charge-offs (a)— 4 39 — 76 115 234 
Home equity lines of credit
Pass3,928 57,885 48,051 29,313 31,465 70,293 31,706 955 272,641 
Substandard— 17 — 275 460 562 — — 1,314 
Loss— — — — — 10 — — 10 
     Total3,928 57,902 48,051 29,588 31,925 70,865 31,706 955 273,965 
Current period gross charge-offs (a)— — — — — 64 64 
Consumer, indirect
Pass141,152 247,347 130,420 82,802 60,739 28,098 — — 690,558 
Substandard— 857 666 448 494 465 — — 2,930 
Loss— 3 5 6 3 24 — — 41 
     Total141,152 248,207 131,091 83,256 61,236 28,587 — — 693,529 
Current period gross charge-offs (a)63 1,604 835 509 250 105 3,366 
Consumer, direct
Pass36,721 38,884 18,101 10,921 8,341 6,059 — — 119,027 
Term Loans at Amortized Cost by Origination YearRevolving Loans Converted to Term
(Dollars in thousands)20262025202420232022PriorRevolving Loans
Total
Loans
Substandard— 35 25 76 60 — — — 196 
Loss— — — — 10 40 — — 50 
     Total36,721 38,919 18,126 10,997 8,411 6,099 — — 119,273 
Current period gross charge-offs (a)182 131 33 33 21 9 409 
Deposit account overdrafts1,041 — — — — — — — 1,041 
Current period gross charge-offs (a)649 — — — — — 649 
Total loans, at amortized cost938,257 1,389,262 867,345 705,004 597,698 1,940,483 383,531 4,156 6,821,580 
Total current period gross charge-offs (a)$1,065 $2,468 $3,213 $5,327 $1,264 $1,188 $14,525 
(a) Current period gross charge-offs are for the six months ended as of June 30, 2026.
The following table summarizes the risk category of loans within Peoples' loan portfolio, including acquired loans, based upon the then most recent analysis performed at December 31, 2025:
Term Loans at Amortized Cost by Origination Year
(Dollars in thousands)20252024202320222021PriorRevolving LoansRevolving Loans Converted to TermTotal
Loans
Construction

Pass$81,441 $98,488 $99,069 $918 $6,618 $8,720 $— $512 $295,254 
Substandard— 3,092 1,113 1,482 — — — — 5,687 
Total81,441 101,580 100,182 2,400 6,618 8,720 — 512 300,941 
Current period gross charge-offs (a)— — — — — — — 
Commercial real estate, other

Pass330,087 164,537 345,618 378,500 310,160 670,053 44,947 1,794 2,243,902 
Special mention83 22,415 2,580 1,696 4,460 13,067 133 — 44,434 
Substandard— 8,042 1,188 15,727 17,170 32,945 549 87 75,621 
Doubtful— — — — — 10 — — 10 
Total330,170 194,994 349,386 395,923 331,790 716,075 45,629 1,881 2,363,967 
Current period gross charge-offs (a)— — — 174 — 121 295 
Commercial and industrial
Pass381,903 230,861 115,712 95,158 92,556 290,243 248,204 7,621 1,454,637 
Special mention45 3,117 2,653 847 981 4,885 30,001 2,292 42,529 
Substandard130 251 263 8,745 12,196 6,407 10,562 5,423 38,554 
Doubtful— — — — — 35 — — 35 
Total382,078 234,229 118,628 104,750 105,733 301,570 288,767 15,336 1,535,755 
Current period gross charge-offs (a)— 19 161 202 202 1,167 1,751 
Premium finance
Pass248,710 3,649 143 — — — — — 252,502 
Substandard— 520 53 — — — — — 573 
Total248,710 4,169 196 — — — — — 253,075 
Term Loans at Amortized Cost by Origination Year
(Dollars in thousands)20252024202320222021PriorRevolving LoansRevolving Loans Converted to TermTotal
Loans
Current period gross charge-offs (a)31 192 229 30 — — 482 
Leases
Pass145,052 94,499 72,336 27,742 9,768 3,161 — — 352,558 
Special mention480 739 774 402 21 — — — 2,416 
Substandard228 1,001 3,386 785 334 — — — 5,734 
Doubtful48 1,406 2,249 864 374 — — — 4,941 
Total145,808 97,645 78,745 29,793 10,497 3,161 — — 365,649 
Current period gross charge-offs (a)204 4,240 8,297 6,717 1,450 496 21,404 
Residential real estate
Pass104,910 66,847 56,842 77,533 117,758 426,547 — — 850,437 
Substandard183 501 1,540 663 924 7,378 — — 11,189 
Loss— — — — — 96 — — 96 
Total105,093 67,348 58,382 78,196 118,682 434,021 — — 861,722 
Current period gross charge-offs (a)— — 27 8 39 199 273 
Home equity lines of credit
Pass54,398 51,042 32,052 34,382 24,293 56,416 21 3,560 252,604 
Substandard— — 312 285 89 559 — — 1,245 
Loss— — — 5 — 10 — — 15 
Total54,398 51,042 32,364 34,672 24,382 56,985 21 3,560 253,864 
Current period gross charge-offs (a)— — 36 — — 5 41 
Consumer, indirect
Pass292,512 164,565 108,928 84,987 27,026 19,049 — — 697,067 
Substandard655 648 708 667 412 305 — — 3,395 
Loss37 15 19 6 7 36 — — 120 
Total293,204 165,228 109,655 85,660 27,445 19,390 — — 700,582 
Current period gross charge-offs (a)1,128 2,030 1,948 1,121 350 147 6,724 
Consumer, direct
Pass60,248 24,070 15,182 11,889 4,516 4,000 — — 119,905 
Substandard43 57 171 71 1 41 — — 384 
Loss— 1 10 6 1 31 — — 49 
Total60,291 24,128 15,363 11,966 4,518 4,072 — — 120,338 
Current period gross charge-offs (a)344 143 98 75 19 23 702 
Deposit account overdrafts1,014 — — — — — — — 1,014 
Current period gross charge-offs (a)1,149 — — — — — 1,149 
Total loans, at amortized cost1,702,207 940,363 862,901 743,360 629,665 1,543,994 334,417 21,289 6,756,907 
Current period gross charge-offs (a)$2,856 $6,624 $10,796 $8,327 $2,060 $2,158 $32,821 
(a) Current period gross charge-offs are for the year ended as of December 31, 2025.
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, 2026December 31, 2025
Construction$11,283 $— 
Commercial real estate, other16,773 687 
Commercial and industrial1,298 4,666 
Leases738 2,385 
Residential real estate647 — 
Total collateral dependent loans$30,739 $7,738 
Collateral dependent loans increased at June 30, 2026, compared to at December 31, 2025, and were driven by the inclusion of two large construction loans, associated with one customer relationship, which totaled approximately $11.3 million. The increase in other commercial real estate loans was driven primarily by a single loan totaling approximately $12.8 million.
Modifications for Borrowers Experiencing Financial Difficulty
As part of Peoples' loss mitigation activities, Peoples may agree to modify the contractual terms of a loan to a borrower experiencing financial difficulty. The most common modifications to the contractual terms of a loan to a borrower experiencing financial difficulty include an extension of the maturity date and a temporary period of interest-only payments.
In addition to loan modifications, Peoples also provides other loss mitigation options, such as forbearance and repayment plans, to assist borrowers who experience financial difficulties. In assessing whether or not a borrower is experiencing financial difficulty, Peoples considers information currently available regarding the financial condition of the borrower. This information includes, but is not limited to, whether (1) the borrower is currently in payment default on any of the borrower's debt; (2) a payment default is probable in the foreseeable future without the modification; (3) the borrower has declared or is in the process of declaring bankruptcy; and (4) the borrower's projected cash flow is insufficient to satisfy contractual payments due under the original terms of the loan without a modification.
The allowance for credit losses for loans modified for borrowers experiencing financial difficulty is determined based on the allowance for credit losses policy as described in "Note 1 Summary of Significant Accounting Policies" of the Notes to the Consolidated Financial Statements included in Peoples' 2025 Form 10-K.
The following tables display the amortized cost of loans that were restructured during the three and six months ended June 30, 2026 and June 30, 2025, presented by loan classification.

(Dollars in thousands)Term Extension
Percentage of Total by Loan Category(a)(b)
During the Three Months Ended June 30, 2026
Commercial real estate, other$1,000 0.04 %
Commercial and industrial474 0.03 %
Home equity lines of credit73 0.03 %
Total$1,547 0.02 %
During the Three Months Ended June 30, 2025
Commercial real estate, other$2,602 0.12 %
Commercial and industrial2,477 0.18 %
Residential real estate192 0.02 %
Total$5,271 0.08 %
(a) Based on the amortized cost basis as of period end, divided by the period end amortized cost basis of the corresponding class of financing receivable.
(b) The table presented above excludes loans that were paid off or otherwise no longer included in the loan portfolio as of period end.
(Dollars in thousands)Payment DeferralTerm ExtensionTotal
Percentage of Total by Loan Category(a)(b)
During the Six Months Ended June 30, 2026
Commercial real estate, other$— $1,874 $1,874 0.08 %
Commercial and industrial492 1,565 2,057 0.12 %
Residential real estate— 126 126 0.01 %
Home equity lines of credit— 73 73 0.03 %
Total$492 $3,638 $4,130 0.06 %
During the Six Months Ended June 30, 2025
Commercial real estate, other— 4,441 4,441 0.20 %
Commercial and industrial— 8,638 8,638 0.61 %
Residential real estate— 192 192 0.02 %
Total$— $13,271 $13,271 0.20 %
(a) Based on the amortized cost basis as of period end, divided by the period end amortized cost basis of the corresponding class of financing receivable.
(b) The table presented above excludes loans that were paid off or otherwise no longer included in the loan portfolio as of period end.

The following tables summarize the impacts of loan modifications made to loans during the three and six months ended June 30, 2026 and June 30, 2025, presented by loan classification.
Weighted-Average Term Extension
(in months)
During the Three Months Ended June 30, 2026
Commercial real estate, other8
Commercial and industrial8
Home equity lines of credit119
During the Three Months Ended June 30, 2025
Commercial real estate, other4
Commercial and industrial5
Residential real estate174
Weighted-Average Term Extension
(in months)
During the Six Months Ended June 30, 2026
Commercial real estate, other10
Commercial and industrial8
Residential real estate37
Home equity lines of credit119
During the Six Months Ended June 30, 2025
Commercial real estate, other4
Commercial and industrial7
Residential real estate174
The following tables display the amortized cost of loans that received a completed modification or payment deferral within the previous 12 months and that had a payment default in the periods presented. For purposes of this disclosure, Peoples defines loans that had a payment default as loans that were 90 days or more past due following a modification. No such loans defaulted in the three or six months ended June 30, 2026.
Term Extension(a)
For the Three Months Ended June 30, 2025
Commercial real estate, other$494 
Total loans that subsequently defaulted$494 
For the Six Months Ended June 30, 2025
Commercial real estate, other$494 
Commercial and industrial18 
Total loans that subsequently defaulted$512 
(a) Represents the sum of amortized cost and gross charge-off as of period end. Excludes loans that liquidated either through foreclosure, deed-in-lieu of foreclosure, or a short sale.
The following table displays an aging analysis of loans that were modified during the 12 months prior to June 30, 2026 and June 30, 2025, respectively, presented by classification and class of financing receivable.
As of June 30, 2026
(Dollars in thousands)30-59 Days Delinquent60-89 Days Delinquent90+ Days DelinquentTotal DelinquentCurrentTotal
Commercial real estate, other$— $— $— $— $1,874 $1,874 
Commercial and industrial— — — — 3,665 3,665 
Residential real estate— — — — 130 130 
Home equity lines of credit— — — — 165 165 
Total loans modified(a)
$— $— $— $— $5,834 $5,834 
(a) Represents the amortized cost basis as of period end.
As of June 30, 2025
(Dollars in thousands)30-59 Days Delinquent60-89 Days Delinquent90+ Days DelinquentTotal DelinquentCurrentTotal
Commercial real estate, other$— $— $494 $494 $4,441 $4,935 
Commercial and industrial— — 18 18 8,823 8,841 
Residential real estate— — — — 207 207 
Home equity lines of credit44 — — 44 51 95 
Consumer, indirect— — 10 10 — 10 
Total loans modified(a)
$44 $— $522 $566 $13,522 $14,088 
(a) Represents the amortized cost basis as of period end.
Allowance for Credit Losses
As discussed in "Note 1 Summary of Significant Accounting Policies" of the Notes to the Consolidated Financial Statements included in Peoples' 2025 Form 10-K, Peoples estimates the allowance for credit losses using relevant available information, from both internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. In management's estimation of expected credit losses, Peoples uses a one-year reasonable and supportable forecast period across all segments. Following the reasonable and supportable forecast period, Peoples reverts the macroeconomic variables to their long run average over a four-quarter reversion period.
Changes in the allowance for credit losses for the three and six months ended June 30, 2026 and June 30, 2025 are summarized below:
(Dollars in thousands)
Beginning Balance, March 31, 2026
Provision for (Recovery of) Credit Losses (a)Charge-offsRecoveries
Ending Balance, June 30, 2026
Construction$1,512 $182 $— $— $1,694 
Commercial real estate, other20,803 175 (167)— 20,811 
Commercial and industrial21,759 (739)(222)26 20,824 
Premium finance686 933 (65)15 1,569 
Leases15,304 2,465 (4,221)818 14,366 
Residential real estate6,643 (22)(115)53 6,559 
Home equity lines of credit1,643 117 (32)— 1,728 
Consumer, indirect7,760 1,387 (1,437)596 8,306 
Consumer, direct2,156 166 (205)22 2,139 
Deposit account overdrafts126 232 (302)51 107 
Total$78,392 $4,896 $(6,766)$1,581 $78,103 
(a)Amount does not include the provision for the allowance for credit losses on unfunded commitments.
(Dollars in thousands)Beginning Balance, March 31, 2025Provision for (Recovery of) Credit Losses (a)Charge-offsRecoveries
Ending Balance, June 30, 2025
Construction$1,156 $191 $— $— $1,347 
Commercial real estate, other17,155 24 (35)— 17,144 
Commercial and industrial12,783 5,610 (556)17 17,854 
Premium finance646 238 (93)3 794 
Leases13,575 10,896 (5,099)261 19,633 
Residential real estate6,786 (723)— 50 6,113 
Home equity lines of credit1,863 (37)(12)— 1,814 
Consumer, indirect8,696 191 (1,693)449 7,643 
Consumer, direct2,474 (144)(96)14 2,248 
Deposit account overdrafts98 167 (245)71 91 
Total$65,232 $16,413 $(7,829)$865 $74,681 
(a)Amount does not include the provision for the allowance for credit losses on unfunded commitments.
(Dollars in thousands)
Beginning Balance, December 31, 2025
Provision for (Recovery of) Credit Losses (a)Charge-offsRecoveries
Ending Balance, June 30, 2026
Construction$1,391 $303 $— $— $1,694 
Commercial real estate, other19,726 1,252 (167)— 20,811 
Commercial and industrial18,804 2,470 (487)37 20,824 
Premium finance749 916 (117)21 1,569 
Leases16,475 5,548 (9,032)1,375 14,366 
Residential real estate6,295 363 (234)135 6,559 
Home equity lines of credit1,934 (154)(64)12 1,728 
Consumer, indirect7,706 3,033 (3,366)933 8,306 
Consumer, direct2,485 15 (409)48 2,139 
Deposit account overdrafts111 511 (649)134 107 
Total$75,676 $14,257 $(14,525)$2,695 $78,103 
(a)Amount does not include the provision for the allowance for credit losses on unfunded commitments.
(Dollars in thousands)Beginning Balance,
December 31, 2024		Provision for (Recovery of) Credit Losses (a)Charge-offsRecoveries
Ending Balance, June 30, 2025
Construction$878 $469 $— $— $1,347 
Commercial real estate, other16,256 1,134 (250)4 17,144 
Commercial and industrial13,283 5,484 (936)23 17,854 
Premium finance662 287 (164)9 794 
Leases12,893 16,987 (10,753)506 19,633 
Residential real estate6,491 (335)(142)99 6,113 
Home equity lines of credit1,792 34 (12)— 1,814 
Consumer, indirect8,576 1,967 (3,559)659 7,643 
Consumer, direct2,396 69 (251)34 2,248 
Deposit account overdrafts121 322 (522)170 91 
Total$63,348 $26,418 $(16,589)$1,504 $74,681 
(a)Amount does not include the provision for the allowance for credit losses on unfunded commitments.
During the second quarter of 2026, Peoples recorded a total provision for credit losses on loans of $4.9 million, which was primarily driven by net charge-offs and an increase in individually-analyzed loans, partially offset by a reduction of balances within loan segments with higher loss rates. Net charge-offs for the second quarter of 2026 were $5.2 million, primarily driven by our NSL division. The decrease in the allowance for credit losses at June 30, 2026 when compared to at March 31, 2026, was driven by a reduction of balances within higher loss rate segments, partially offset by an increase in individually-analyzed loans.
During the second quarter of 2025, Peoples recorded a provision for credit losses of $16.4 million, which was driven by (i) net charge-offs, (ii) an increase in reserves for individually analyzed loans and leases, (iii) an increase in reserves for leases originated by our North Star Leasing division, (iv) a periodic refresh in loss drivers utilized within the CECL model, (v) deterioration in the economic forecasts used within the CECL model, and (vi) loan growth. Net charge-offs for the second quarter of 2025 were $7.0 million, primarily driven by our NSL division.
Peoples had recorded allowances for unfunded commitments of $2.6 million and $2.5 million as of June 30, 2026 and as of December 31, 2025, respectively. The allowance for unfunded commitments (also referred to as "unfunded commitment liability") is presented in the “Accrued expenses and other liabilities” line of the Unaudited Consolidated Balance Sheets. The change in the allowance for unfunded commitments is also reflected in the "Provision for credit losses" line of the Unaudited Consolidated Statements of Operations.