v3.26.3
Loans and Leases
 9 Months Ended
Sep. 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)September 30,
2026		December 31, 2025
Construction$334,701 $300,941 
Commercial real estate, other2,244,721 2,363,967 
Commercial and industrial1,724,108 1,535,755 
Premium finance270,634 253,075 
Leases342,343 365,649 
Residential real estate832,656 861,722 
Home equity lines of credit284,173 253,864 
Consumer, indirect685,329 700,582 
Consumer, direct120,536 120,338 
Deposit account overdrafts1,608 1,014 
Total loans, at amortized cost$6,840,809 $6,756,907 
The table above includes net deferred loan origination costs of $19.9 million and $20.0 million at September 30, 2026 and at December 31, 2025, respectively. The remaining unamortized net discount included in the amortized cost of loans and leases was $6.6 million and $9.7 million at September 30, 2026 and at December 31, 2025, respectively.
Accrued interest receivable is not included within the loan balances, but is presented in the “Other assets” line of the Unaudited Consolidated Balance Sheets, with no recorded allowance for credit losses. Total interest receivable on loans was $23.2 million and $25.0 million at September 30, 2026 and at December 31, 2025, respectively.
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:
September 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, other4,992 3,100 4,056 579 
Commercial and industrial3,293 44 8,045 126 
Premium finance— 1,549 573 2,477 
Leases6,191 — 11,063 542 
Residential real estate9,016 2,879 8,556 1,937 
Home equity lines of credit1,602 178 1,507 69 
Consumer, indirect2,809 166 2,718 286 
Consumer, direct304 198 368 140 
Total loans, at amortized cost$28,500 $8,114 $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 September 30, 2026 and at December 31, 2025, respectively.
During the first nine months of 2026, nonaccrual loans decreased compared to at December 31, 2025, which was primarily due to decreases in nonaccrual leases of $4.9 million and nonaccrual commercial and industrial loans of $4.8 million, partially offset by an increase in nonaccrual other commercial real estate loans of $0.9 million. The increase in accruing loans 90+ days past due at September 30, 2026, when compared to at December 31, 2025, was primarily due to one large other commercial real estate loan, totaling $3.1 million.
The following table presents the aging of the amortized cost of past due loans:
Loans Past Due
Current
Loans
Total
Loans
(Dollars in thousands)30 - 59 days60 - 89 days90 + DaysTotal
September 30, 2026
Construction$— $39 $293 $332 $334,369 $334,701 
Commercial real estate, other2,339 2,423 7,612 12,374 2,232,347 2,244,721 
Commercial and industrial788 304 3,226 4,318 1,719,790 1,724,108 
Premium finance2,070 211 1,549 3,830 266,804 270,634 
Leases2,015 2,808 5,198 10,021 332,322 342,343 
Residential real estate2,973 2,831 7,074 12,878 819,778 832,656 
Home equity lines of credit1,109 323 1,144 2,576 281,597 284,173 
Consumer, indirect7,091 1,734 1,493 10,318 675,011 685,329 
Consumer, direct736 149 400 1,285 119,251 120,536 
Deposit account overdrafts— — — — 1,608 1,608 
Total loans, at amortized cost$19,121 $10,822 $27,989 $57,932 $6,782,877 $6,840,809 
December 31, 2025
Construction$— $— $— $— $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 99.2% of Peoples' loan portfolio was considered “current” at September 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)September 30, 2026December 31, 2025
Loans pledged to FHLB$1,219,389 $1,347,242 
Loans pledged to FRB654,487 624,503 
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 September 30, 2026:
Term Loans at Amortized Cost by Origination YearRevolving Loans Converted to Term
(Dollars in thousands)20262025202420232022PriorRevolving Loans
Total
Loans
Construction

  Pass$51,372 $114,463 $101,668 $47,044 $522 $5,414 $— $— $320,483 
  Substandard— — 11,409 1,076 1,440 293 — — 14,218 
     Total51,372 114,463 113,077 48,120 1,962 5,707 — — 334,701 
Current period gross charge-offs (a)— — — — — — — 
Commercial real estate, other

  Pass202,548 345,864 165,898 249,174 294,829 801,182 40,780 525 2,100,275 
  Special mention— — 6,229 33,558 4,550 3,558 — — 47,895 
  Substandard5,808 1,012 33,563 1,471 5,105 49,472 120 — 96,551 
     Total208,356 346,876 205,690 284,203 304,484 854,212 40,900 525 2,244,721 
Current period gross charge-offs (a)— — — — — 855 855 
Commercial and industrial
  Pass466,549 294,274 173,663 82,911 52,015 345,883 235,334 2,467 1,650,629 
  Special mention1,202 6,156 18,763 22 4,394 53 5,534 — 36,124 
Term Loans at Amortized Cost by Origination YearRevolving Loans Converted to Term
(Dollars in thousands)20262025202420232022PriorRevolving Loans
Total
Loans
  Substandard637 159 3,182 130 4,917 17,019 11,303 5,123 37,347 
  Doubtful— — — — — 8 — — 8 
     Total468,388 300,589 195,608 83,063 61,326 362,963 252,171 7,590 1,724,108 
Current period gross charge-offs (a)193 1,000 64 104 22 126 1,509 
Premium Finance
Pass256,182 14,221 231 — — — — — 270,634 
Total256,182 14,221 231 — — — — — 270,634 
Current period gross charge-offs (a)2 95 102 2 — — 201 
Leases
Pass121,249 95,504 63,098 41,491 12,496 2,142 — — 335,980 
Special mention194 233 333 240 91 — — — 1,091 
Substandard234 536 926 889 353 167 — — 3,105 
Doubtful— 32 640 893 602 — — — 2,167 
Total121,677 96,305 64,997 43,513 13,542 2,309 — — 342,343 
Current period gross charge-offs (a)55 1,148 2,964 5,912 1,484 827 12,390 
Residential real estate
Pass61,233 97,072 59,183 49,104 71,524 482,157 — — 820,273 
Substandard— 748 684 1,582 1,173 7,980 — — 12,167 
Loss— 21 24 — 78 93 — — 216 
     Total61,233 97,841 59,891 50,686 72,775 490,230 — — 832,656 
Current period gross charge-offs (a)— 4 60 — 76 120 260 
Home equity lines of credit
Pass4,261 57,324 47,262 27,760 30,611 65,860 49,694 1,102 282,772 
Substandard— — — 294 373 722 — — 1,389 
Loss— — — — — 12 — — 12 
     Total4,261 57,324 47,262 28,054 30,984 66,594 49,694 1,102 284,173 
Current period gross charge-offs (a)— — — — — 64 64 
Consumer, indirect
Pass201,716 222,986 114,772 70,853 50,188 21,435 — — 681,950 
Substandard117 1,213 703 505 400 353 — — 3,291 
Loss6 35 13 9 5 20 — — 88 
     Total201,839 224,234 115,488 71,367 50,593 21,808 — — 685,329 
Current period gross charge-offs (a)218 2,452 1,201 753 364 138 5,126 
Consumer, direct
Pass48,814 34,373 15,616 9,039 7,070 5,260 — — 120,172 
Term Loans at Amortized Cost by Origination YearRevolving Loans Converted to Term
(Dollars in thousands)20262025202420232022PriorRevolving Loans
Total
Loans
Substandard25 76 29 96 38 — — — 264 
Loss— — — — 3 97 — — 100 
     Total48,839 34,449 15,645 9,135 7,111 5,357 — — 120,536 
Current period gross charge-offs (a)321 197 87 57 60 12 734 
Deposit account overdrafts1,608 — — — — — — — 1,608 
Current period gross charge-offs (a)966 — — — — — 966 
Total loans, at amortized cost1,423,755 1,286,302 817,889 618,141 542,777 1,809,180 342,765 9,217 6,840,809 
Total current period gross charge-offs (a)$1,755 $4,896 $4,478 $6,828 $2,006 $2,142 $22,105 
(a) Current period gross charge-offs are for the nine months ended September 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 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 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 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)September 30, 2026December 31, 2025
Construction$11,432 $— 
Commercial real estate, other21,903 687 
Commercial and industrial298 4,666 
Leases— 2,385 
Residential real estate640 — 
Total collateral dependent loans$34,273 $7,738 
Collateral dependent loans increased at September 30, 2026, compared to at December 31, 2025, due to an increase in collateral dependent other commercial real estate loans, driven primarily by a single loan totaling approximately $12.7 million, and an increase in collateral dependent construction loans, driven by the inclusion of two large construction loans, associated with one customer relationship, totaling approximately $11.4 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 nine months ended September 30, 2026 and September 30, 2025, presented by loan classification.

(Dollars in thousands)Term ExtensionPrincipal ForgivenessTotal
Percentage of Total by Loan Category(a)(b)
During the Three Months Ended September 30, 2026
Commercial real estate, other$480 1,700 $2,180 0.10 %
Commercial and industrial7,785 — 7,785 0.45 %
Consumer, indirect10 — 10 — %
Total$8,275 $1,700 $9,975 0.15 %
During the Three Months Ended September 30, 2025
Commercial real estate, other$1,037 $— $1,037 0.04 %
Commercial and industrial2,704 — 2,704 0.18 %
Home equity lines of credit47 — 47 0.02 %
Total$3,788 $— $3,788 0.06 %
(a) Based on the amortized cost basis as of period end, divided by the period end amortized cost basis of the corresponding class of financing receivable.
(b) The tables presented above excludes loans that were paid off or otherwise no longer included in the loan portfolio as of period end.
(Dollars in thousands)
During the Nine Months Ended September 30, 2026
Payment DeferralTerm ExtensionPrincipal ForgivenessTotal
Percentage of Total by Loan Category(a)(b)
Commercial real estate, other$— $1,949 $1,700 $3,649 0.16 %
Commercial and industrial482 8,437 — 8,919 0.52 %
Residential real estate— 124 — 124 0.01 %
Home equity lines of credit— 68 — 68 0.02 %
Consumer, indirect— 10 — 10 — %
Total$482 $10,588 $1,700 $12,770 0.19 %
During the Nine Months Ended September 30, 2025
Commercial real estate, other— 3,084 — 3,084 0.13 %
Commercial and industrial— 10,880 — 10,880 0.73 %
Residential real estate— 188 — 188 0.02 %
Home equity lines of credit— 47 — 47 0.02 %
Total$— $14,199 $— $14,199 0.21 %
(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 tables presented above exclude 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 nine months ended September 30, 2026 and September 30, 2025, presented by loan classification.
During the Three Months Ended September 30, 2026
Weighted-Average Term Extension
(in months)
Commercial real estate, other9
Commercial and industrial23
Consumer, indirect12
During the Three Months Ended September 30, 2025
Commercial real estate, other6
Commercial and industrial3
Home equity lines of credit240
Weighted-Average Term Extension
(in months)
During the Nine Months Ended September 30, 2026
Commercial real estate, other9
Commercial and industrial22
Residential real estate37
Home equity lines of credit119
Consumer, indirect12
During the Nine Months Ended September 30, 2025
Commercial real estate, other4
Commercial and industrial6
Residential real estate174
Home equity lines of credit240
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 nine months ended September 30, 2026.
Term Extension(a)
For the Three Months Ended September 30, 2025
Commercial and industrial$405 
Total loans that subsequently defaulted$405 
For the Nine Months Ended September 30, 2025
Commercial and industrial423 
Total loans that subsequently defaulted$423 
(a) Represents the sum of amortized cost and gross charge-off as of period end. Excludes loans that liquidated either through foreclosure, deed-in-lieu of foreclosure, or a short sale.
The following tables display an aging analysis of loans that were modified during the 12 months prior to September 30, 2026 and September 30, 2025, respectively, presented by classification and class of financing receivable.
As of September 30, 2026
(Dollars in thousands)30-59 Days Delinquent60-89 Days Delinquent90+ Days DelinquentTotal DelinquentCurrentTotal
Commercial real estate, other$— $— $— $— $3,649 $3,649 
Commercial and industrial82 — — 82 8,942 9,024 
Residential real estate— 24 — 24 102 126 
Home equity lines of credit— — — — 117 117 
Consumer, indirect— — — — 10 10 
Total loans modified(a)
$82 $24 $— $106 $12,820 $12,926 
(a) Represents the amortized cost basis as of period end.
As of September 30, 2025
(Dollars in thousands)30-59 Days Delinquent60-89 Days Delinquent90+ Days DelinquentTotal DelinquentCurrentTotal
Commercial real estate, other$— $— $— $— $3,084 $3,084 
Commercial and industrial— — 423 423 10,625 11,048 
Residential real estate— — — — 188 188 
Home equity lines of credit47 — — 47 92 139 
Total loans modified(a)
$47 $— $423 $470 $13,989 $14,459 
(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 nine months ended September 30, 2026 and September 30, 2025 are summarized below:
(Dollars in thousands)
Beginning Balance, June 30, 2026
Provision for (Recovery of) Credit Losses (a)Charge-offsRecoveries
Ending Balance, September 30, 2026
Construction$1,694 $186 $— $— $1,880 
Commercial real estate, other20,811 (549)(688)— 19,574 
Commercial and industrial20,824 1,426 (1,022)143 21,371 
Premium finance1,569 (755)(84)7 737 
Leases14,366 1,483 (3,358)809 13,300 
Residential real estate6,559 32 (26)26 6,591 
Home equity lines of credit1,728 81 — — 1,809 
Consumer, indirect8,306 1,146 (1,760)470 8,162 
Consumer, direct2,139 324 (325)24 2,162 
Deposit account overdrafts107 262 (317)89 141 
Total$78,103 $3,636 $(7,580)$1,568 $75,727 
(a)Amount does not include the provision for the allowance for credit losses on unfunded commitments.
(Dollars in thousands)Beginning Balance, June 30, 2025Provision for (Recovery of) Credit Losses (a)Charge-offsRecoveries
Ending Balance, September 30, 2025
Construction$1,347 $(95)$— $— $1,252 
Commercial real estate, other17,144 1,198 (27)1 18,316 
Commercial and industrial17,854 488 (472)26 17,896 
Premium finance794 84 (105)3 776 
Leases19,633 2,894 (4,930)443 18,040 
Residential real estate6,113 266 (71)40 6,348 
Home equity lines of credit1,814 93 (27)— 1,880 
Consumer, indirect7,643 1,408 (1,607)418 7,862 
Consumer, direct2,248 400 (290)27 2,385 
Deposit account overdrafts91 276 (312)54 109 
Total$74,681 $7,012 $(7,841)$1,012 $74,864 
(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, September 30, 2026
Construction$1,391 $489 $— $— $1,880 
Commercial real estate, other19,726 703 (855)— 19,574 
Commercial and industrial18,804 3,896 (1,509)180 21,371 
Premium finance749 161 (201)28 737 
Leases16,475 7,031 (12,390)2,184 13,300 
Residential real estate6,295 395 (260)161 6,591 
Home equity lines of credit1,934 (73)(64)12 1,809 
Consumer, indirect7,706 4,179 (5,126)1,403 8,162 
Consumer, direct2,485 339 (734)72 2,162 
Deposit account overdrafts111 773 (966)223 141 
Total$75,676 $17,893 $(22,105)$4,263 $75,727 
(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, September 30, 2025
Construction$878 $374 $— $— $1,252 
Commercial real estate, other16,256 2,332 (277)5 18,316 
Commercial and industrial13,283 5,972 (1,408)49 17,896 
Premium finance662 371 (269)12 776 
Leases12,893 19,881 (15,683)949 18,040 
Residential real estate6,491 (69)(213)139 6,348 
Home equity lines of credit1,792 127 (39)— 1,880 
Consumer, indirect8,576 3,375 (5,166)1,077 7,862 
Consumer, direct2,396 469 (541)61 2,385 
Deposit account overdrafts121 598 (834)224 109 
Total$63,348 $33,430 $(24,430)$2,516 $74,864 
(a)Amount does not include the provision for the allowance for credit losses on unfunded commitments.
During the third quarter of 2026, Peoples recorded a total provision for credit losses on loans of $3.6 million, which was primarily driven by net charge-offs and was partially offset by a decrease in individually analyzed loans and updates to the prepayment, curtailment, and funding rates used within the current expected credit loss ("CECL") model. Net charge-offs for the third quarter of 2026 were $6.0 million, driven primarily by leases and indirect consumer loans. The decrease in the allowance for credit losses at September 30, 2026 when compared to at June 30, 2026, was driven by a decrease in individually analyzed loans and updates to the prepayment, curtailment, and funding rates.
During the third quarter of 2025, Peoples recorded a provision for credit losses of $7.0 million, which was driven by (i) net charge-offs, (ii) loan growth, and (iii) a slight deterioration in the economic forecasts used within the CECL model, partially offset by reductions in reserves for individually analyzed loans and leases. Net charge-offs for the third quarter of 2025 were $6.8 million, primarily driven by net charge-offs of leases in our NSL division.
Peoples had recorded allowances for unfunded commitments of $2.6 million and $2.5 million as of September 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.