Financial Performance - Peoples reported net income of $29.5 million for Q3 2025, with earnings per diluted common share of $0.83, compared to $21.2 million and $0.59 in Q2 2025, and $31.7 million and $0.89 in Q3 2024[168]. - For the nine months ended September 30, 2025, net income was $75.0 million, or $2.10 per diluted common share, down from $90.3 million, or $2.55 per diluted common share for the same period in 2024[168]. - Annualized net income for Q3 2025 was $116,943, compared to $85,081 in Q2 2025, reflecting an increase in annualized net income adjusted for non-core items to $126,528[244]. - The annualized net income adjusted for non-core items for the first nine months of 2025 was $104,216, compared to $121,902 for the same period in 2024[244]. Earnings and Income Analysis - Non-core items negatively impacted earnings per diluted common share by $0.07 in Q3 2025, $0.01 in Q2 2025, and $0.01 in Q3 2024[168]. - Net interest income for Q3 2025 was $91.3 million, an increase of $3.8 million, or 4%, from the linked quarter, and a $2.4 million, or 3%, increase from Q3 2024[169]. - The efficiency ratio for Q3 2025 was 57.1%, an improvement from 59.3% in the linked quarter[181]. - Pre-provision net revenue (PPNR) for Q3 2025 was $48,340, an increase from $44,375 in Q2 2025, driven by higher net interest income from loans and investment securities[239]. Asset and Liability Management - Total assets as of September 30, 2025, were $9.62 billion, an increase from $9.54 billion at June 30, 2025, and $9.25 billion at December 31, 2024[183]. - Total liabilities were $8.44 billion at September 30, 2025, up from $8.39 billion at June 30, 2025, and $8.14 billion at December 31, 2024[184]. - Total stockholders' equity at September 30, 2025, increased by $29.4 million compared to June 30, 2025, primarily due to net income of $29.5 million[185]. - The total fair value of available-for-sale securities at September 30, 2025, was $976,906,000, down from $1,051,497,000 in the previous quarter[253]. Credit Quality and Losses - Provision for credit losses in Q3 2025 was $7.3 million, down from $16.6 million in the linked quarter and up from $6.7 million in Q3 2024[171]. - Net charge-offs for Q3 2025 were $6.8 million, or 0.41% of average total loans annualized, compared to $7.0 million, or 0.43%, in the linked quarter[173]. - The allowance for credit losses increased to $74,485 thousand in Q3 2025 from $65,186 thousand in Q2 2025[191]. - Total net charge-offs for the third quarter of 2025 were $6.829 million, or 0.41% of average total loans on an annualized basis, a decrease from $6.964 million, or 0.43%, in the linked quarter[267]. Regulatory and Compliance - The company is subject to regulation by the Ohio Division of Financial Institutions, the Federal Reserve Bank of Cleveland, and the FDIC[161]. - Peoples may face increased regulatory scrutiny and potential impacts from recent failures of other financial institutions[157]. - The capital conservation buffer was 5.79% at September 30, 2025, indicating a strong capital position above regulatory requirements[276]. Operational Highlights - As of September 30, 2025, Peoples operated 145 locations, including 127 full-service bank branches across multiple states[161]. - Peoples' business activities are currently limited to one reporting unit and reportable operating segment, which is community banking[161]. - The company continues to focus on controlling expenses while recognizing necessary costs for business growth[242]. Interest Rate and Economic Sensitivity - The company anticipates potential risks from changes in interest rate policies and inflationary pressures affecting borrowers' liquidity and repayment ability[156]. - The estimated increase in net interest income for a 300 basis point rise in interest rates is $36,689 thousand, which is a 9.7% increase[283]. - The bear steepener scenario produced an increase in net interest income of 0.8% and an increase in the economic value of equity of 5.6% as of September 30, 2025[286]. Non-Interest Income - Total non-interest income, excluding net gains and losses, for Q3 2025 decreased by $0.3 million compared to the linked quarter but increased by $1.2 million compared to Q3 2024[176]. - E-banking income for Q3 2025 was $6.538 million, slightly up from $6.359 million in Q3 2024[207]. - Trust and investment income for Q3 2025 was $5.414 million, up from $4.882 million in Q3 2024, reflecting increased brokerage income[210]. Loan Portfolio and Growth - Total loans for Q3 2025 amounted to $6,634,323 thousand, with a net interest margin of 6.71%, consistent with Q2 2025[191]. - The total loan and lease balances at September 30, 2025 increased by $456.9 million, or 7%, compared to September 30, 2024, with significant contributions from commercial and industrial loans and other commercial real estate loans[257]. - Loans secured by commercial real estate, including commercial construction loans, comprised the largest portion of the loan portfolio at September 30, 2025[259]. Employee and Operational Expenses - Salaries and employee benefit costs for the first nine months of 2025 increased to $117.4 million from $112.5 million in 2024, driven by annual merit increases[219]. - Total non-interest expense for the first nine months of 2025 increased by $7.7 million, or 4%, compared to the same period in 2024[180]. - Data processing and software expenses for the first nine months of 2025 increased to $21.7 million from $18.6 million in 2024 due to costs associated with recent technology projects[226].

Financial Data and Key Metrics Changes - The company reported diluted earnings per share of $0.83 for Q3 2025, an improvement compared to the linked quarter [5] - Net interest income increased nearly $4,000,000, while the net interest margin expanded by one basis point [6] - The efficiency ratio improved to 57.1% compared to 59.3% in the linked quarter [7] - The provision for credit losses declined over $9,000,000, with the allowance for credit losses standing at 1.11% of total loans [8][10] Business Line Data and Key Metrics Changes - Annualized loan growth was 8%, with significant growth in commercial real estate and commercial and industrial loan balances [12] - Non-performing loans declined nearly $2,000,000, comprising 58 basis points of total loans compared to 61 basis points at the end of the previous quarter [10] - Fee-based income experienced a 1% decline compared to the linked quarter, driven by lower lease income [17] Market Data and Key Metrics Changes - The loan to deposit ratio increased to 88% from 86% at the end of the previous quarter [20] - Deposit balances were relatively flat, with increases in money market and interest-bearing demand accounts offset by declines in brokered CDs and governmental accounts [21][22] Company Strategy and Development Direction - The company continues to develop its business organically while awaiting the right acquisition opportunities [24] - The focus remains on managing net interest income and net interest margin through the current interest rate cycle [24] - The company anticipates loan growth to be between 4% and 6% for 2026, depending on pay down timing and economic conditions [26] Management's Comments on Operating Environment and Future Outlook - Management noted a reduction in provision for credit losses to a more normalized rate for Q3 [24] - The company expects to achieve positive operating leverage for 2025 compared to 2024, excluding the impact of reduced accretion income [25] - Management highlighted the potential for increased refinancing activity if mortgage rates fall [66] Other Important Information - The tangible equity to tangible assets ratio improved by 27 basis points to 8.5% at quarter end [23] - The company plans to manage capital in preparation for potential M&A opportunities while supporting dividends [95] Q&A Session Summary Question: Clarification on criticized and classified loans - Management expects some criticized and classified loans to revert in the near term, estimating $35,000,000 to $55,000,000 in upgrades or payoffs [34] Question: Loan growth guidance for 2026 - Management indicated that loan growth guidance for 2026 is slightly below this year's guidance but aligns with historical growth rates [36] Question: Impact of rate cuts on margin - Management confirmed that each 25 basis point rate cut is expected to result in a three to four basis point decline in net interest margin [46] Question: Update on North Star portfolio - Management reported that the high balance accounts in the North Star portfolio are down to about $15,000,000 to $16,000,000, with expectations for a gradual decline in charge-offs [48] Question: Appetite for buybacks and M&A - Management expressed a priority on building capital for M&A opportunities while maintaining an active buyback program [95]

Third Quarter 2025 Earnings Conference Call October 21, 2025 1 Safe Harbor Statement Statements in this presentation which are not historical facts are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. These forward-looking statements may include discussions of the strategic plans and objectives or anticipated future performance and ...

Core Viewpoint - Peoples Bancorp (PEBO) reported quarterly earnings of $0.90 per share, exceeding the Zacks Consensus Estimate of $0.83 per share, but slightly lower than the $0.89 per share from the previous year, indicating an earnings surprise of +8.43% [1][2] Financial Performance - The company posted revenues of $115.18 million for the quarter ended September 2025, missing the Zacks Consensus Estimate by 1.6%, compared to $113.71 million in the same quarter last year [2] - Over the last four quarters, the company has surpassed consensus EPS estimates two times and topped consensus revenue estimates two times [2] Stock Performance - Peoples Bancorp shares have declined approximately 9.4% since the beginning of the year, while the S&P 500 has gained 14.5% [3] - The current status translates into a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.84 on revenues of $117.9 million, and for the current fiscal year, it is $2.95 on revenues of $462.15 million [7] - The estimate revisions trend for Peoples Bancorp was mixed ahead of the earnings release, which could change following the recent report [6] Industry Context - The Zacks Industry Rank for Banks - Midwest is currently in the top 37% of over 250 Zacks industries, suggesting that the industry outlook can significantly impact stock performance [8]

[Executive Summary](index=1&type=section&id=Executive%20Summary) Peoples Bancorp Inc. reported increased Q3 2025 net income and diluted EPS, driven by strong loan growth and improved efficiency, with the CEO highlighting continued momentum [Third Quarter 2025 Highlights](index=1&type=section&id=1.1%20Third%20Quarter%202025%20Highlights) Peoples Bancorp Inc. reported a net income of $29.5 million for Q3 2025, translating to $0.83 earnings per diluted common share, an increase compared to Q2 2025 but a slight decrease from Q3 2024 Key Financial Highlights | Metric | Q3 2025 | Q2 2025 | Q3 2024 | | :-------------------------------- | :------ | :------ | :------ | | Net Income (millions) | $29.5 | $21.2 | $31.7 | | Earnings per Diluted Common Share | $0.83 | $0.59 | $0.89 | - The efficiency ratio improved to **57.1%** in Q3 2025 from **59.3%** in the linked quarter[3](index=3&type=chunk) - Period-end total loan and lease balances increased by **$127.1 million**, or **8% annualized**, compared to Q2 2025[4](index=4&type=chunk) [CEO Commentary](index=1&type=section&id=1.2%20CEO%20Commentary) President and CEO Tyler Wilcox highlighted continued high loan growth and improvements in several key financial metrics during the third quarter, expressing a focus on maintaining momentum and driving shareholder value - CEO noted 'high loan growth and had improvements in several key financial metrics during the third quarter'[2](index=2&type=chunk) - Company aims to 'maintain our momentum going into the fourth quarter and to drive shareholder value in future periods'[2](index=2&type=chunk) [Financial Performance Overview](index=1&type=section&id=Financial%20Performance%20Overview) The company's Q3 2025 financial performance saw increased net interest income and improved efficiency, despite higher credit loss provisions and non-interest expenses [Net Income and EPS](index=1&type=section&id=2.1%20Net%20Income%20and%20EPS) Net income for Q3 2025 was $29.5 million, an increase from $21.2 million in Q2 2025 but a decrease from $31.7 million in Q3 2024, with diluted EPS following a similar trend, reaching $0.83 in Q3 2025 Net Income and EPS Summary | Metric | Q3 2025 | Q2 2025 | Q3 2024 | | :-------------------------------- | :------ | :------ | :------ | | Net Income (millions) | $29.5 | $21.2 | $31.7 | | Earnings per Diluted Common Share | $0.83 | $0.59 | $0.89 | [Net Interest Income](index=1&type=section&id=2.2%20Net%20Interest%20Income) Net interest income increased by $3.8 million (4%) QoQ to $91.3 million in Q3 2025, driven by higher investment securities yields and loan balances, with net interest margin slightly increasing to 4.16% from 4.15% QoQ, but decreasing YoY due to lower accretion income Net Interest Income and Margin | Metric | Q3 2025 | Q2 2025 | Q3 2024 | | :------------------ | :------ | :------ | :------ | | Net Interest Income (millions) | $91.3 | $87.5 | $88.9 | | Net Interest Margin | 4.16% | 4.15% | 4.27% | - QoQ increase in net interest income driven by higher investment securities yields and loan balances[5](index=5&type=chunk) - Accretion income, net of amortization expense, contributed **8 basis points** to margin in Q3 2025, down from **12 basis points** in Q2 2025 and **39 basis points** in Q3 2024, primarily due to fewer loan payoffs and more accretion recognized in 2024 from the Limestone Merger[8](index=8&type=chunk) [Provision for Credit Losses](index=1&type=section&id=2.3%20Provision%20for%20Credit%20Losses) The provision for credit losses significantly decreased to $7.3 million in Q3 2025 from $16.6 million in Q2 2025, but was slightly higher than $6.7 million in Q3 2024, mainly due to net charge-offs, loan growth, and a slight deterioration in economic forecasts, partially offset by reductions in reserves for individually analyzed loans Provision for Credit Losses | Metric | Q3 2025 | Q2 2025 | Q3 2024 | | :-------------------------- | :------ | :------ | :------ | | Provision for Credit Losses (millions) | $7.3 | $16.6 | $6.7 | - Q3 2025 provision was driven by net charge-offs, loan growth, and slight deterioration in CECL model economic forecasts, partially offset by reductions in reserves for individually analyzed loans[5](index=5&type=chunk)[11](index=11&type=chunk) - The provision negatively impacted diluted EPS by **$0.16** in Q3 2025, compared to **$0.36** in Q2 2025 and **$0.15** in Q3 2024[14](index=14&type=chunk) [Non-Interest Income](index=1&type=section&id=2.4%20Non-Interest%20Income) Total non-interest income, excluding net gains and losses, decreased slightly QoQ but increased YoY, with the QoQ decrease mainly due to lower lease income, while the YoY increase was driven by BOLI, lease, and trust and investment income Total Non-Interest Income (Excluding Net Gains/Losses) | Metric (Excl. Net Gains/Losses) | Q3 2025 (thousands) | Q2 2025 (thousands) | Q3 2024 (thousands) | | :-------------------------------- | :------------------ | :------------------ | :------------------ | | Total Non-Interest Income | $26,885 | $27,160 | $25,663 | - QoQ decrease in non-interest income (excluding net gains/losses) was primarily due to a **$0.6 million** decrease in lease income, partially offset by a **$0.3 million** increase in electronic banking income[17](index=17&type=chunk) - YoY increase in non-interest income (excluding net gains/losses) was driven by increases in bank owned life insurance income (**+$0.7 million**), lease income (**+$0.6 million**), and trust and investment income (**+$0.5 million**), partially offset by a decrease in mortgage banking income (**+$0.8 million**)[18](index=18&type=chunk) [Net Gains and Losses](index=3&type=section&id=2.4.1%20Net%20Gains%20and%20Losses) The company recorded a net loss of $3.1 million in Q3 2025, significantly higher than the $0.3 million loss in Q2 2025 and $0.9 million loss in Q3 2024, primarily due to a $2.7 million net loss from the sale of lower-yielding available-for-sale securities Net Gains and Losses | Metric | Q3 2025 | Q2 2025 | Q3 2024 | | :--------------- | :------ | :------ | :------ | | Net Loss (millions) | $3.1 | $0.3 | $0.9 | - The Q3 2025 net loss was driven by a **$2.7 million** net loss on the sale of lower-yielding available-for-sale securities[15](index=15&type=chunk) - Net losses from the sale of assets negatively impacted diluted EPS by **$0.06** in Q3 2025[5](index=5&type=chunk) [Other Non-Interest Income](index=3&type=section&id=2.4.2%20Other%20Non-Interest%20Income) For the first nine months of 2025, total non-interest income, excluding gains and losses, increased by $5.2 million (7%) YoY, primarily driven by increases in lease income, trust and investment income, and other non-interest income - For the first nine months of 2025, total non-interest income (excluding gains and losses) increased **$5.2 million**, or **7%**, compared to the first nine months of 2024[19](index=19&type=chunk) - Key drivers of the increase for the nine months included: **$4.0 million** increase in lease income, **$1.3 million** increase in trust and investment income, and **$1.0 million** increase in other non-interest income[19](index=19&type=chunk) - These increases were partially offset by a **$0.8 million** decrease in mortgage banking income and a **$0.7 million** decrease in deposit account service charges[19](index=19&type=chunk) [Non-Interest Expense](index=3&type=section&id=2.5%20Non-Interest%20Expense) Total non-interest expense decreased by $0.5 million QoQ in Q3 2025, mainly due to lower professional fees and other corporate expenses, but increased by $3.8 million (6%) YoY, primarily driven by higher salaries and employee benefits, data processing, and other non-interest expenses Total Non-Interest Expense | Metric | Q3 2025 (thousands) | Q2 2025 (thousands) | Q3 2024 (thousands) | | :-------------------- | :------------------ | :------------------ | :------------------ | | Total Non-Interest Expense | $69,894 | $70,362 | $66,090 | - QoQ decrease was primarily due to decreases of **$0.8 million** in professional fees and **$0.6 million** in other non-interest expense[20](index=20&type=chunk) - YoY increase was primarily driven by increases of **$1.6 million** in salaries and employee benefit costs, **$1.2 million** in data processing and software expense, and **$1.2 million** in other non-interest expense[21](index=21&type=chunk) [Efficiency Ratio](index=3&type=section&id=2.6%20Efficiency%20Ratio) The efficiency ratio improved to 57.1% in Q3 2025 from 59.3% in the linked quarter, mainly due to higher net interest income and lower non-interest expense, but increased to 59.0% for the first nine months of 2025 compared to 57.4% for the same period in 2024, due to increased non-interest expense Efficiency Ratio Trends | Metric | Q3 2025 | Q2 2025 | Q3 2024 | 9M 2025 | 9M 2024 | | :------------- | :------ | :------ | :------ | :------ | :------ | | Efficiency Ratio | 57.1% | 59.3% | 55.1% | 59.0% | 57.4% | - QoQ improvement in efficiency ratio was mainly due to higher net interest income and lower non-interest expense[23](index=23&type=chunk)[24](index=24&type=chunk) - The efficiency ratio for the first nine months of 2025 increased compared to the prior year first nine months due to the increase in non-interest expense[24](index=24&type=chunk) [Income Tax Expense](index=4&type=section&id=2.7%20Income%20Tax%20Expense) Income tax expense for Q3 2025 was $8.5 million with an effective tax rate of 22.4%, an increase from Q2 2025 due to higher pre-tax income, while for the first nine months of 2025, income tax expense decreased to $21.8 million from $24.3 million in 2024, driven by lower pre-tax income Income Tax Expense and Effective Tax Rate | Metric | Q3 2025 | Q2 2025 | Q3 2024 | 9M 2025 | 9M 2024 | | :---------------- | :------ | :------ | :------ | :------ | :------ | | Income Tax Expense (millions) | $8.5 | $6.2 | $9.2 | $21.8 | $24.3 | | Effective Tax Rate | 22.4% | 22.7% | 22.5% | 22.5% | 21.2% | - The increase in income tax expense QoQ was primarily due to higher pre-tax income[25](index=25&type=chunk) - The decrease in income tax expense for the first nine months of 2025 was driven by lower pre-tax income, with the effective tax rate being higher due to a one-time tax benefit in Q2 2024[25](index=25&type=chunk) [Financial Position Overview](index=1&type=section&id=Financial%20Position%20Overview) The company's financial position as of Q3 2025 shows growth in loans and stockholders' equity, stable asset quality, and strategic shifts in investment securities and deposits [Investment Securities and Liquidity](index=4&type=section&id=3.1%20Investment%20Securities%20and%20Liquidity) The available-for-sale investment securities balance decreased by $74.6 million QoQ, while held-to-maturity investment securities increased by $31.8 million QoQ, driven by purchases of higher yielding, longer duration securities, with Peoples maintaining strong liquidity with $735.2 million in liquid assets and $985.2 million in borrowing capacity Investment Securities and Liquidity Summary | Metric (as of Sep 30, 2025) | Value (millions) | Change QoQ (millions) | | :-------------------------------- | :--------------- | :-------------------- | | Available-for-sale securities | $976.9 | -$74.6 | | Held-to-maturity securities | $931.8 | +$31.8 | - The decrease in accumulated other comprehensive loss was due to changes in the market value of available-for-sale investment securities, driven by changes in market interest rates[26](index=26&type=chunk) - At September 30, 2025, Peoples had liquid and liquefiable assets totaling **$735.2 million** and a total borrowing capacity of **$985.2 million**[29](index=29&type=chunk) [Loans and Leases](index=4&type=section&id=3.2%20Loans%20and%20Leases) Total loan and lease balances increased by $127.1 million (8% annualized) QoQ to $6.73 billion, primarily driven by growth in other commercial real estate loans and commercial and industrial loans, partially offset by a decrease in construction loans Loan and Lease Balances | Metric | Sep 30, 2025 (millions) | Change QoQ (millions) | Change YoY (millions) | | :-------------------------------- | :---------------------- | :-------------------- | :-------------------- | | Total Loan and Lease Balances | $6,728.7 | +$127.1 | +$456.9 | - QoQ increase in loans was driven by increases of **$121.2 million** in other commercial real estate loans and **$82.1 million** in commercial and industrial loans, partially offset by an **$80.3 million** decrease in construction loans[30](index=30&type=chunk) - Quarterly average total loan balances increased **$190.9 million (3%)** QoQ and **$331.9 million (5%)** YoY[32](index=32&type=chunk)[33](index=33&type=chunk) [Asset Quality](index=5&type=section&id=3.3%20Asset%20Quality) Key asset quality metrics generally improved in Q3 2025, with nonperforming assets decreasing by $1.8 million (4%) QoQ and $25.0 million (36%) YoY, however, criticized loans increased by $23.9 million (10%) QoQ and classified loans increased by $33.6 million (27%) QoQ, primarily due to loan downgrades Asset Quality Metrics | Metric (as of Sep 30, 2025) | Value | Change QoQ | Change YoY | | :---------------------------- | :-------- | :--------- | :--------- | | Nonperforming Assets (millions) | $44.8 | -$1.8M | -$25.0M | | Nonperforming Assets % of Total Loans & OREO | 0.66% | -0.05% | -0.45% | | Criticized Loans (millions) | $268.3 | +$23.9M | +$30.7M | | Classified Loans (millions) | $158.6 | +$33.6M | +$25.3M | - Delinquency trends remained stable, with **99.0%** of the loan portfolio considered current[34](index=34&type=chunk) - Annualized net charge-offs were **0.41%** of average total loans for Q3 2025, a slight decrease from **0.43%** in Q2 2025 but an increase from **0.38%** in Q3 2024[37](index=37&type=chunk) [Deposits](index=5&type=section&id=3.4%20Deposits) Period-end total deposits decreased by $5.0 million QoQ, primarily due to decreases in brokered and governmental deposits, partially offset by increases in customer deposits (money market and interest-bearing demand accounts), while total deposits increased by $42.0 million YTD and $149.0 million YoY Total Deposits | Metric (as of Sep 30, 2025) | Value (millions) | Change QoQ (millions) | Change YTD (millions) | Change YoY (millions) | | :---------------------------- | :--------------- | :-------------------- | :-------------------- | :-------------------- | | Total Deposits | $7,632.2 | -$5.0 | +$42.0 | +$149.0 | - Customer deposits increased QoQ, driven by higher money market deposit accounts and interest-bearing demand accounts[13](index=13&type=chunk)[39](index=39&type=chunk) - The decrease in brokered deposits was due to a strategic shift to other funding sources at lower rates[39](index=39&type=chunk)[40](index=40&type=chunk) [Stockholders' Equity](index=6&type=section&id=3.5%20Stockholders'%20Equity) Total stockholders' equity increased by $29.4 million (3%) QoQ, primarily driven by net income and a decrease in accumulated other comprehensive loss, partially offset by dividends paid, and also increased by $71.2 million (6%) YTD and $57.8 million (5%) YoY Stockholders' Equity | Metric (as of Sep 30, 2025) | Value (millions) | Change QoQ (millions) | Change YTD (millions) | Change YoY (millions) | | :---------------------------- | :--------------- | :-------------------- | :-------------------- | :-------------------- | | Total Stockholders' Equity | $1,182.8 | +$29.4 | +$71.2 | +$57.8 | - QoQ increase was primarily driven by net income of **$29.5 million** and a **$12.7 million** decrease in accumulated other comprehensive loss, partially offset by **$14.7 million** in dividends paid[45](index=45&type=chunk) - The decrease in accumulated other comprehensive loss was a result of changes in the market value of available-for-sale investment securities[45](index=45&type=chunk) [Company Information](index=7&type=section&id=Company%20Information) This section provides an overview of Peoples Bancorp Inc.'s business, details for the Q3 2025 conference call, explanations of non-US GAAP measures, and a safe harbor statement regarding forward-looking information [Company Profile](index=7&type=section&id=4.1%20Company%20Profile) Peoples Bancorp Inc. is a diversified financial services holding company headquartered in Marietta, Ohio, offering banking, trust and investment, insurance, and specialty financing solutions, with $9.6 billion in total assets and 145 locations across multiple states as of September 30, 2025 - Peoples Bancorp Inc. is a diversified financial services holding company offering banking, trust and investment, insurance, and specialty financing solutions[48](index=48&type=chunk) - As of September 30, 2025, Peoples had **$9.6 billion** in total assets and **145 locations**, including **127 full-service bank branches**[48](index=48&type=chunk) - Peoples offers services through Peoples Bank (including Peoples Investment Services, Peoples Premium Finance and North Star Leasing), Peoples Insurance Agency, LLC, and Vantage Financial, LLC[49](index=49&type=chunk) [Conference Call Details](index=8&type=section&id=4.2%20Conference%20Call%20Details) Peoples will host a conference call on October 21, 2025, at 11:00 a.m. Eastern Time, to discuss its third quarter 2025 results, with details for participation via phone or webcast provided - A conference call to discuss Q3 2025 results will be held on **October 21, 2025, at 11:00 a.m. Eastern Time**[50](index=50&type=chunk) - Participants can join by calling **(866) 890-9285** or via webcast on the 'Investor Relations' section of www.peoplesbancorp.com[50](index=50&type=chunk) [Non-US GAAP Financial Measures Explanation](index=8&type=section&id=4.3%20Non-US%20GAAP%20Financial%20Measures%20Explanation) The news release includes non-US GAAP financial measures used by management to analyze performance and efficiency, believing they offer greater understanding and comparability, which are not substitutes for US GAAP and are reconciled at the end of the release - Non-US GAAP financial measures are used by management to analyze performance and efficiency, providing a greater understanding of ongoing operations and enhancing comparability[51](index=51&type=chunk) - These measures should not be viewed as substitutes for US GAAP financial measures and are reconciled in the 'Non-US GAAP Financial Measures (Unaudited)' section[51](index=51&type=chunk)[52](index=52&type=chunk) - Examples of non-US GAAP measures include core non-interest expense, efficiency ratio, tangible assets/equity, total non-interest income excluding net gains and losses, pre-provision net revenue, and return on average tangible equity[53](index=53&type=chunk) [Safe Harbor Statement and Risk Factors](index=8&type=section&id=4.4%20Safe%20Harbor%20Statement%20and%20Risk%20Factors) The report contains forward-looking statements subject to various risks and uncertainties that could cause actual results to differ materially, including interest rate policies, inflation, business strategies, competitive pressures, regulatory changes, economic conditions, credit quality, and cybersecurity risks, among others - The news release contains 'forward-looking statements' regarding financial condition, results of operations, plans, objectives, future performance, and business[52](index=52&type=chunk) - These statements are subject to risks and uncertainties that may cause actual results to differ materially, including effects of interest rate policies, inflationary pressures, competitive pressures, and legislative or regulatory changes[53](index=53&type=chunk)[54](index=54&type=chunk) - Other significant risk factors include changes in economic conditions, credit quality, accounting standards, financial market trends, and operational issues like cybersecurity attacks and reliance on third-party vendors[54](index=54&type=chunk)[55](index=55&type=chunk) [Financial Statements and Supplemental Data](index=13&type=section&id=Financial%20Statements%20and%20Supplemental%20Data) This section provides comprehensive financial statements, including per common share data, income statements, balance sheets, and detailed reconciliations of non-US GAAP measures [Per Common Share Data and Selected Ratios](index=13&type=section&id=5.1%20Per%20Common%20Share%20Data%20and%20Selected%20Ratios) This section provides a table detailing key per common share data and selected financial ratios for various periods, including basic and diluted EPS, cash dividends, book value, tangible book value, and performance ratios like return on equity, return on assets, efficiency ratio, and net interest margin Per Common Share Data and Selected Ratios | Metric | Q3 2025 | Q2 2025 | Q3 2024 | 9M 2025 | 9M 2024 | | :-------------------------------- | :------ | :------ | :------ | :------ | :------ | | Diluted EPS | $0.83 | $0.59 | $0.89 | $2.10 | $2.55 | | Cash Dividends Declared per Share | $0.41 | $0.41 | $0.40 | $1.22 | $1.19 | | Book Value per Share | $33.13 | $32.33 | $31.65 | $33.13 | $31.65 | | Return on Average Stockholders' Equity | 10.06% | 7.42% | 11.46% | 8.76% | 11.25% | | Return on Average Assets | 1.22% | 0.92% | 1.38% | 1.07% | 1.32% | | Efficiency Ratio | 57.11% | 59.25% | 55.10% | 58.99% | 57.43% | | Net Interest Margin | 4.16% | 4.15% | 4.27% | 4.15% | 4.24% | [Consolidated Statements of Income](index=14&type=section&id=5.2%20Consolidated%20Statements%20of%20Income) This section presents the detailed consolidated statements of income for the three and nine months ended September 30, 2025, and comparable periods, including total interest income and expense, net interest income, provision for credit losses, various non-interest income categories, and non-interest expenses, culminating in net income Consolidated Statements of Income | (Dollars in thousands) | Q3 2025 | Q2 2025 | Q3 2024 | 9M 2025 | 9M 2024 | | :-------------------------------- | :------ | :------ | :------ | :------ | :------ | | Total interest income | $132,808 | $126,407 | $133,620 | $383,757 | $391,983 | | Total interest expense | $41,459 | $38,830 | $44,708 | $119,576 | $129,818 | | Net interest income | $91,349 | $87,577 | $88,912 | $264,181 | $262,165 | | Provision for credit losses | $7,280 | $16,642 | $6,735 | $34,112 | $18,520 | | Total non-interest income | $23,827 | $26,880 | $24,794 | $77,806 | $74,277 | | Total non-interest expense | $69,894 | $70,362 | $66,090 | $211,043 | $203,313 | | Income before income taxes | $38,002 | $27,453 | $40,881 | $96,832 | $114,609 | | Income tax expense | $8,526 | $6,241 | $9,197 | $21,808 | $24,334 | | Net income | $29,476 | $21,212 | $31,684 | $75,024 | $90,275 | [Consolidated Balance Sheets](index=16&type=section&id=5.3%20Consolidated%20Balance%20Sheets) This section provides the consolidated balance sheets as of September 30, 2025, and December 31, 2024, detailing assets such as cash, investment securities, loans and leases, and liabilities including deposits, borrowings, and stockholders' equity Consolidated Balance Sheets | (Dollars in thousands) | Sep 30, 2025 | Dec 31, 2024 | | :-------------------------------- | :----------- | :----------- | | Total assets | $9,623,944 | $9,254,247 | | Total investment securities | $1,972,721 | $1,918,487 | | Loans and leases, net | $6,653,864 | $6,294,655 | | Allowance for credit losses | $74,864 | $63,348 | | Total deposits | $7,632,196 | $7,590,205 | | Total liabilities | $8,441,168 | $8,142,657 | | Total stockholders' equity | $1,182,776 | $1,111,590 | [Selected Financial Information](index=17&type=section&id=5.4%20Selected%20Financial%20Information) This section presents selected financial data including detailed breakdowns of the loan portfolio, investment securities, deposit balances, asset quality metrics (nonperforming assets, criticized and classified loans), and capital information for various periods Selected Financial Information | (Dollars in thousands) | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | | :-------------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Total loans and leases | $6,728,728 | $6,601,589 | $6,428,526 | $6,358,003 | $6,271,839 | | Total Investment Securities | $1,972,721 | $2,019,054 | $1,878,462 | $1,918,487 | $1,829,995 | | Total deposits | $7,632,196 | $7,637,208 | $7,734,749 | $7,590,205 | $7,483,157 | | Total Nonperforming Assets (NPAs) | $44,800 | $46,624 | $45,815 | $48,936 | $69,782 | | NPAs as a percent of total assets | 0.47% | 0.49% | 0.50% | 0.53% | 0.76% | | Common equity tier 1 capital ratio | 12.11% | 11.95% | 12.10% | 11.95% | 11.80% | - Loan portfolio growth was notable in other commercial real estate and commercial and industrial loans[73](index=73&type=chunk) - Allowance for credit losses as a percent of non-performing loans increased to **193.01%** at September 30, 2025, from **106.82%** at September 30, 2024[73](index=73&type=chunk) [Provision for Credit Losses Information](index=19&type=section&id=5.5%20Provision%20for%20Credit%20Losses%20Information) This section provides detailed information on the provision for credit losses and net charge-offs, broken down by loan type, for the three and nine months ended September 30, 2025, and comparable periods Provision for Credit Losses and Net Charge-Offs | (Dollars in thousands) | Q3 2025 | Q2 2025 | Q3 2024 | 9M 2025 | 9M 2024 | | :-------------------------------- | :------ | :------ | :------ | :------ | :------ | | Total provision for credit losses | $7,280 | $16,642 | $6,735 | $34,112 | $18,520 | | Gross charge-offs | $7,841 | $7,829 | $6,591 | $24,430 | $15,072 | | Recoveries | $1,012 | $865 | $507 | $2,516 | $1,435 | | Net charge-offs | $6,829 | $6,964 | $6,084 | $21,914 | $13,637 | | Net Charge-Offs as % of Avg Total Loans (annualized) | 0.41% | 0.43% | 0.38% | 0.45% | 0.29% | - Leases accounted for the largest portion of net charge-offs in Q3 2025 (**$4.487 million**) and for the nine months ended September 30, 2025 (**$14.734 million**)[75](index=75&type=chunk) [Consolidated Average Balance Sheets and Net Interest Income](index=20&type=section&id=5.6%20Consolidated%20Average%20Balance%20Sheets%20and%20Net%20Interest%20Income) This section provides average balance sheets and net interest income data, including average balances, income/expense, and yields/costs for earning assets and interest-bearing liabilities, for the three and nine months ended September 30, 2025, and comparable periods Q3 2025 Consolidated Average Balance Sheets and Net Interest Income | (Dollars in thousands) | Q3 2025 Avg Balance | Q3 2025 Income/Expense | Q3 2025 Yield/Cost | | :-------------------------------- | :------------------ | :------------------- | :----------------- | | Total earning assets | $8,649,329 | $133,087 | 6.07% | | Total loans | $6,634,323 | $113,186 | 6.71% | | Total interest-bearing deposits | $6,155,493 | $33,890 | 2.18% | | Total interest-bearing liabilities | $6,753,337 | $41,459 | 2.44% | | Net interest income/spread | | $91,628 | 3.63% | | Net interest margin | | | 4.16% | 9M 2025 Consolidated Average Balance Sheets and Net Interest Income | (Dollars in thousands) | 9M 2025 Avg Balance | 9M 2025 Income/Expense | 9M 2025 Yield/Cost | | :-------------------------------- | :------------------ | :------------------- | :----------------- | | Total earning assets | $8,435,528 | $384,598 | 6.04% | | Total loans | $6,478,440 | $329,354 | 6.73% | | Total interest-bearing deposits | $6,150,367 | $102,930 | 2.24% | | Total interest-bearing liabilities | $6,569,222 | $119,575 | 2.43% | | Net interest income/spread | | $265,023 | 3.61% | | Net interest margin | | | 4.15% | [Non-US GAAP Financial Measures Reconciliation](index=22&type=section&id=5.7%20Non-US%20GAAP%20Financial%20Measures%20Reconciliation) This section provides detailed reconciliations of non-US GAAP financial measures to their most directly comparable US GAAP measures, including calculations for the efficiency ratio, tangible equity, tangible assets, tangible book value per common share, pre-provision net revenue, and various return on asset/equity metrics adjusted for non-core items or amortization of intangible assets Non-US GAAP Financial Measures Reconciliation (Income Statement Related) | (Dollars in thousands) | Q3 2025 | Q2 2025 | Q3 2024 | 9M 2025 | 9M 2024 | | :-------------------------------- | :------ | :------ | :------ | :------ | :------ | | Adjusted total non-interest expense | $67,683 | $68,151 | $63,304 | $204,408 | $194,952 | | Total non-interest income, excluding net gains and losses | $26,885 | $27,160 | $25,663 | $81,507 | $76,269 | | Net interest income on a fully tax-equivalent basis | $91,628 | $87,857 | $89,230 | $265,023 | $263,187 | | Adjusted revenue | $118,513 | $115,017 | $114,893 | $346,530 | $339,456 | | Efficiency ratio | 57.11% | 59.25% | 55.10% | 58.99% | 57.43% | Non-US GAAP Financial Measures Reconciliation (Balance Sheet Related) | (Dollars in thousands) | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | | :-------------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Tangible equity | $787,241 | $755,565 | $737,722 | $709,168 | $721,050 | | Tangible assets | $9,228,409 | $9,142,823 | $8,845,901 | $8,851,825 | $8,736,549 | | Tangible book value per common share | $22.05 | $21.18 | $20.68 | $19.94 | $20.29 | | Tangible equity to tangible assets | 8.53% | 8.26% | 8.34% | 8.01% | 8.25% | Non-US GAAP Financial Measures Reconciliation (Performance Ratios) | (Dollars in thousands) | Q3 2025 | Q2 2025 | Q3 2024 | 9M 2025 | 9M 2024 | | :-------------------------------- | :------ | :------ | :------ | :------ | :------ | | Pre-provision net revenue | $48,340 | $44,375 | $48,484 | $134,645 | $135,121 | | Return on average tangible equity | 16.17% | 12.31% | 19.40% | 14.40% | 19.50% |

Core Points - Peoples Bancorp Inc. reported a net income of $29.5 million for Q3 2025, with earnings per diluted common share of $0.83, an increase from $21.2 million and $0.59 in Q2 2025, but a slight decrease from $31.7 million and $0.89 in Q3 2024 [1][2] Financial Performance - Net interest income for Q3 2025 was $91.3 million, up $3.8 million or 4% from the previous quarter, with a net interest margin of 4.16%, slightly higher than 4.15% in Q2 2025 [4][13] - Compared to Q3 2024, net interest income increased by $2.4 million or 3%, while net interest margin decreased by 11 basis points [5] - Accretion income for Q3 2025 was $1.7 million, down from $2.6 million in Q2 2025 and $8.1 million in Q3 2024, impacting net interest margin [6][8] Credit Losses - The provision for credit losses was $7.3 million in Q3 2025, significantly lower than $16.6 million in Q2 2025 and slightly higher than $6.7 million in Q3 2024 [9][11] - For the first nine months of 2025, the provision for credit losses totaled $34.1 million, compared to $18.5 million in the same period of 2024 [10] Non-Interest Income and Expenses - Total non-interest income, excluding net gains and losses, decreased by $0.3 million or 1% in Q3 2025 compared to Q2 2025, primarily due to a decrease in lease income [16] - Total non-interest expense decreased by $0.5 million in Q3 2025 compared to the linked quarter, driven by lower professional service costs [19] Asset Quality - Key asset quality metrics improved, with 99.0% of the loan portfolio considered current as of September 30, 2025 [32] - Nonperforming assets decreased by $1.8 million or 4% compared to Q2 2025 and by $25.0 million or 36% compared to Q3 2024 [32] Loans and Deposits - Total loan and lease balances increased by $127.1 million or 8% annualized from Q2 2025, driven by growth in commercial real estate and industrial loans [27] - Total deposits decreased by $5.0 million compared to Q2 2025, with customer deposits increasing by $19.5 million [37] Stockholders' Equity - Total stockholders' equity increased by $29.4 million or 3% compared to Q2 2025, primarily due to net income and a decrease in accumulated other comprehensive loss [43]

Core Viewpoint - Peoples Bancorp Inc. plans to release its third quarter 2025 earnings on October 21, 2025, and will hold a conference call to discuss the results with analysts and investors [1][2]. Company Overview - Peoples Bancorp Inc. is a diversified financial services holding company offering a range of banking, trust, investment, insurance, premium financing, and equipment leasing solutions through its subsidiaries [4]. - The company has been headquartered in Marietta, Ohio, since 1902 and has a strong heritage of financial stability, growth, and community impact [4]. - As of June 30, 2025, Peoples Bancorp had total assets of $9.5 billion and operated 145 locations, including 127 full-service bank branches across several states [4]. Conference Call Details - The conference call will feature commentary from Tyler Wilcox, President and CEO, and Kathryn Bailey, CFO and Treasurer, followed by a Q&A session [2]. - Participants are encouraged to join the call at least 15 minutes prior to the scheduled start time [3]. - The call will be accessible via a dial-in number and a simultaneous webcast, with an audio replay available for one year [2].

PART I – FINANCIAL INFORMATION [ITEM 1. FINANCIAL STATEMENTS](index=3&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS) Provides unaudited condensed consolidated financial statements, including balance sheets, statements of operations, comprehensive income, stockholders' equity, cash flows, and related detailed notes [CONSOLIDATED BALANCE SHEETS (Unaudited)](index=3&type=section&id=CONSOLIDATED%20BALANCE%20SHEETS%20(Unaudited)) The consolidated balance sheets provide a snapshot of the company's financial position at June 30, 2025, compared to December 31, 2024, detailing assets, liabilities, and stockholders' equity | Metric (Dollars in thousands) | June 30, 2025 | December 31, 2024 | | :---------------------------- | :------------ | :---------------- | | Total assets | $9,540,608 | $9,254,240 | | Total liabilities | $8,387,258 | $8,142,650 | | Total stockholders' equity | $1,153,350 | $1,111,590 | - Total assets increased by **$286.37 million (3.1%)** from December 31, 2024, to June 30, 2025, driven by increases in loans and leases and investment securities[10](index=10&type=chunk) - Total liabilities increased by **$244.61 million (3.0%)** over the same period, primarily due to higher short-term borrowings[10](index=10&type=chunk) [CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)](index=5&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS%20(Unaudited)) The consolidated statements of operations present the company's financial performance for the three and six months ended June 30, 2025, compared to the same periods in 2024, highlighting key revenue and expense items | Metric (Dollars in thousands, except per share data) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--------------------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Total interest income | $126,407 | $130,770 | $250,949 | $258,363 | | Total interest expense | $38,830 | $44,157 | $78,117 | $85,110 | | Net interest income | $87,577 | $86,613 | $172,832 | $173,253 | | Provision for credit losses | $16,642 | $5,683 | $26,832 | $11,785 | | Total non-interest income | $26,880 | $23,704 | $53,979 | $49,483 | | Total non-interest expense | $70,362 | $68,758 | $141,149 | $137,223 | | Net income | $21,212 | $29,007 | $45,548 | $58,591 | | Earnings per common share - basic | $0.60 | $0.83 | $1.29 | $1.67 | | Earnings per common share - diluted | $0.59 | $0.82 | $1.28 | $1.66 | - Net income for Q2 2025 decreased by **$7.795 million (26.9%)** YoY, and diluted EPS decreased by **$0.23 (28.0%)** YoY[13](index=13&type=chunk) - The provision for credit losses significantly increased by **$10.959 million (192.8%)** YoY for Q2 2025, and by **$15.047 million (127.7%)** for the six months ended June 30, 2025[13](index=13&type=chunk) [CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited)](index=7&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20COMPREHENSIVE%20INCOME%20(LOSS)%20(Unaudited)) This statement details the components of comprehensive income, including net income and other comprehensive income (loss) from available-for-sale investment securities and cash flow hedges | Metric (Dollars in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :---------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net income | $21,212 | $29,007 | $45,548 | $58,591 | | Total other comprehensive income (loss), net of tax | $5,419 | $(1,253) | $20,113 | $(8,603) | | Total comprehensive income | $26,631 | $27,754 | $65,661 | $49,988 | - Total other comprehensive income (loss) significantly improved, moving from a loss of **$1.253 million** in Q2 2024 to a gain of **$5.419 million** in Q2 2025, primarily due to gross unrealized holding gains on available-for-sale investment securities[14](index=14&type=chunk) [CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited)](index=8&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20STOCKHOLDERS'%20EQUITY%20(Unaudited)) This section outlines the changes in stockholders' equity for the three and six months ended June 30, 2025, and 2024, detailing impacts from net income, other comprehensive income, dividends, and various stock transactions | Metric (Dollars in thousands) | Balance, December 31, 2024 | Net Income (6M 2025) | Other Comprehensive Income (6M 2025) | Cash Dividends Declared (6M 2025) | Balance, June 30, 2025 | | :---------------------------- | :------------------------- | :------------------- | :----------------------------------- | :-------------------------------- | :--------------------- | | Common Shares | $866,844 | — | — | — | $868,493 | | Retained Earnings | $388,109 | $45,548 | — | $(28,843) | $406,252 | | Accumulated Other Comprehensive Loss | $(110,385) | — | $20,113 | — | $(90,272) | | Treasury Stock | $(32,978) | — | — | — | $(31,123) | | Total Stockholders' Equity | $1,111,590 | $45,548 | $20,113 | $(28,843) | $1,153,350 | - Total stockholders' equity increased by **$41.76 million (3.76%)** from December 31, 2024, to June 30, 2025, primarily due to net income and a decrease in accumulated other comprehensive loss, partially offset by cash dividends[16](index=16&type=chunk) - Cash dividends declared for the six months ended June 30, 2025, totaled **$28.843 million**, an increase from **$27.942 million** in the same period of 2024[16](index=16&type=chunk)[19](index=19&type=chunk) [CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)](index=12&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS%20(Unaudited)) This statement summarizes the cash inflows and outflows from operating, investing, and financing activities for the six months ended June 30, 2025, compared to the same period in 2024 | Metric (Dollars in thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :---------------------------- | :----------------------------- | :----------------------------- | | Net cash provided by operating activities | $84,984 | $69,123 | | Net cash used in investing activities | $(330,964) | $(273,382) | | Net cash provided by financing activities | $214,391 | $13,408 | | Net decrease in cash and cash equivalents | $(31,589) | $(190,851) | | Cash and cash equivalents at end of period | $186,075 | $235,871 | - Net cash provided by operating activities increased by **$15.861 million (22.9%)** for the six months ended June 30, 2025, compared to the prior year[20](index=20&type=chunk) - Net cash provided by financing activities significantly increased by **$200.983 million**, primarily due to a net increase in short-term borrowings[20](index=20&type=chunk)[251](index=251&type=chunk) [NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS](index=13&type=section&id=NOTES%20TO%20THE%20UNAUDITED%20CONDENSED%20CONSOLIDATED%20FINANCIAL%20STATEMENTS) These notes provide detailed disclosures and explanations for the unaudited condensed consolidated financial statements, covering significant accounting policies, fair value measurements, investment securities, loans and leases, goodwill and other intangible assets, deposits, stockholders' equity, employee benefit plans, earnings per common share, derivative financial instruments, stock-based compensation, revenue, and leases [Note 1 Summary of Significant Accounting Policies](index=13&type=section&id=Note%201%20Summary%20of%20Significant%20Accounting%20Policies) This note outlines the basis of presentation for the financial statements, confirming adherence to US GAAP for interim reporting, consistency with prior annual reports, the use of estimates, and the company's single reportable operating segment (community banking) - The financial statements are prepared in accordance with US GAAP for interim financial information and are consistent with policies described in Peoples' 2024 Form 10-K[21](index=21&type=chunk)[22](index=22&type=chunk) - Peoples operates as a single reportable operating segment: community banking, offering a full range of banking, leasing, insurance, investment, and trust solutions[24](index=24&type=chunk) - New accounting pronouncements, ASU 2023-09 (Income Tax Disclosures) and ASU 2025-01 (Expense Disaggregation Disclosures), are pending adoption, with ASU 2023-09 effective for annual periods beginning after December 15, 2024, and ASU 2025-01 effective for annual periods beginning after December 15, 2026[25](index=25&type=chunk)[162](index=162&type=chunk)[163](index=163&type=chunk) [Note 2 Fair Value of Assets and Liabilities](index=13&type=section&id=Note%202%20Fair%20Value%20of%20Assets%20and%20Liabilities) This note describes the methodologies and hierarchy used to measure and report the fair value of assets and liabilities on both a recurring and non-recurring basis, categorizing them into Level 1, Level 2, and Level 3 based on input observability | Asset/Liability (Dollars in thousands) | June 30, 2025 (Level 1) | June 30, 2025 (Level 2) | December 31, 2024 (Level 1) | December 31, 2024 (Level 2) | | :------------------------------------- | :---------------------- | :---------------------- | :-------------------------- | :-------------------------- | | Total available-for-sale securities | $13,880 | $1,037,617 | $15,196 | $1,068,359 | | Derivative assets | — | $11,452 | — | $18,743 | | Derivative liabilities | — | $10,658 | — | $17,046 | - Available-for-sale investment securities are primarily Level 2, valued using pricing models with observable market data, while U.S. Treasury obligations are Level 1[30](index=30&type=chunk)[33](index=33&type=chunk) - Non-recurring fair value measurements include collateral dependent loans (Level 3), loans held for sale (Level 2), and other real estate owned (Level 3)[38](index=38&type=chunk)[39](index=39&type=chunk)[40](index=40&type=chunk)[41](index=41&type=chunk) [Note 3 Investment Securities](index=17&type=section&id=Note%203%20Investment%20Securities) This note provides a detailed breakdown of available-for-sale (AFS) and held-to-maturity (HTM) investment securities, including their amortized cost, fair value, unrealized gains and losses, and credit loss allowances | Metric (Dollars in thousands) | June 30, 2025 (AFS) | December 31, 2024 (AFS) | June 30, 2025 (HTM) | December 31, 2024 (HTM) | | :---------------------------- | :------------------ | :---------------------- | :------------------ | :---------------------- | | Total amortized cost | $1,170,092 | $1,229,382 | $900,256 | $775,037 | | Total fair value | $1,051,497 | $1,083,555 | $831,611 | $692,499 | | Gross unrealized losses | $(120,993) | $(147,410) | $(70,688) | $(82,911) | - Gross unrealized losses on AFS securities decreased by **$26.417 million** from December 31, 2024, to June 30, 2025, while HTM unrealized losses decreased by **$12.223 million**[53](index=53&type=chunk)[59](index=59&type=chunk) - Peoples pledged **$1.105 billion** of investment securities at June 30, 2025, to secure public and trust department deposits, repurchase agreements, and additional borrowing capacity at the FHLB and FRB[66](index=66&type=chunk) [Note 4 Loans and Leases](index=22&type=section&id=Note%204%20Loans%20and%20Leases) This note details the composition of Peoples' loan and lease portfolio, including major classifications, nonaccrual and past due loans, credit quality indicators, collateral dependent loans, loan modifications, and the allowance for credit losses (ACL) | Loan Type (Dollars in thousands) | June 30, 2025 | December 31, 2024 | | :------------------------------- | :------------ | :---------------- | | Total loans, at amortized cost | $6,601,589 | $6,358,003 | | Nonaccrual loans | $34,485 | $34,129 | | Loans 90+ days past due and accruing | $6,126 | $8,637 | | Allowance for credit losses | $74,681 | $63,348 | - Total loans increased by **$243.586 million (3.83%)** from December 31, 2024, to June 30, 2025, with significant growth in commercial real estate and commercial and industrial loans[69](index=69&type=chunk) - The allowance for credit losses increased by **$11.333 million (17.89%)** from December 31, 2024, to June 30, 2025, driven by net charge-offs, increased reserves for individually analyzed loans/leases, and deterioration in economic forecasts[107](index=107&type=chunk)[110](index=110&type=chunk) - Net charge-offs for the six months ended June 30, 2025, were **$15.085 million**, primarily driven by the North Star Leasing division[107](index=107&type=chunk)[110](index=110&type=chunk) [Note 5 Goodwill and Other Intangible Assets](index=35&type=section&id=Note%205%20Goodwill%20and%20Other%20Intangible%20Assets) This note provides details on goodwill and other intangible assets, including their carrying amounts, accumulated amortization, and estimated future amortization schedules | Metric (Dollars in thousands) | June 30, 2025 | December 31, 2024 | | :---------------------------- | :------------ | :---------------- | | Goodwill | $363,199 | $363,199 | | Total other intangibles | $34,586 | $39,223 | | Accumulated amortization | $(61,634) | $(57,268) | - Other intangible assets decreased by **$4.637 million** from December 31, 2024, to June 30, 2025, primarily due to amortization[114](index=114&type=chunk) - The weighted-average amortization period for other intangible assets is **7.7 years**[114](index=114&type=chunk) [Note 6 Deposits](index=37&type=section&id=Note%206%20Deposits) This note details the composition of Peoples' deposit balances, including retail certificates of deposits (CDs), interest-bearing accounts, savings, money market, governmental, and brokered CDs, along with information on uninsured deposits and contractual maturities | Deposit Type (Dollars in thousands) | June 30, 2025 | December 31, 2024 | | :---------------------------------- | :------------ | :---------------- | | Total deposits | $7,637,208 | $7,590,205 | | Non-interest-bearing | $1,530,824 | $1,507,661 | | Interest-bearing | $6,106,384 | $6,082,544 | | Uninsured deposits | $2,000,000 | $2,000,000 | - Total deposits increased by **$47.003 million (0.62%)** from December 31, 2024, to June 30, 2025, driven by retail CDs and non-interest-bearing deposits, partially offset by decreases in brokered CDs[115](index=115&type=chunk)[269](index=269&type=chunk)[270](index=270&type=chunk) - Uninsured deposits remained at **$2.0 billion** at both June 30, 2025, and December 31, 2024[116](index=116&type=chunk) [Note 7 Stockholders' Equity](index=38&type=section&id=Note%207%20Stockholders'%20Equity) This note details the changes in common shares and treasury stock, the share repurchase program, cash dividends declared, and the components of accumulated other comprehensive loss | Metric | Shares at December 31, 2024 | Shares at June 30, 2025 | | :---------------------------------- | :-------------------------- | :---------------------- | | Common Shares | 36,782,601 | 36,808,227 | | Treasury Stock | 1,311,175 | 1,219,408 | - Peoples repurchased **17,166 common shares** totaling **$0.5 million** under its share repurchase program during Q2 2025[120](index=120&type=chunk) - A quarterly cash dividend of **$0.41 per common share** was declared on July 21, 2025, for Q3 2025, an increase from **$0.40** in Q3 2024[122](index=122&type=chunk) [Note 8 Employee Benefit Plans](index=39&type=section&id=Note%208%20Employee%20Benefit%20Plans) This note provides information on Peoples' retirement savings plan (401(k)) and the company's matching contributions | Metric (Dollars in thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :---------------------------- | :----------------------------- | :----------------------------- | | Matching contributions | $3,000 | $3,100 | - Peoples matches **100%** of participants' contributions up to **6%** of their compensation[125](index=125&type=chunk) [Note 9 Earnings Per Common Share](index=39&type=section&id=Note%209%20Earnings%20Per%20Common%20Share) This note details the calculation of basic and diluted earnings per common share for the three and six months ended June 30, 2025, and 2024 | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--------------------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net income available to common shareholders | $21,212 | $29,007 | $45,548 | $58,591 | | Earnings per common share - basic | $0.60 | $0.83 | $1.29 | $1.67 | | Earnings per common share - diluted | $0.59 | $0.82 | $1.28 | $1.66 | | Weighted-average number of common shares outstanding - diluted | 35,331,707 | 35,117,648 | 35,299,418 | 35,071,550 | - Diluted EPS decreased from **$0.82** in Q2 2024 to **$0.59** in Q2 2025, and from **$1.66** to **$1.28** for the six months ended June 30, 2025[126](index=126&type=chunk) [Note 10 Derivative Financial Instruments](index=39&type=section&id=Note%2010%20Derivative%20Financial%20Instruments) This note describes Peoples' use of interest rate swap agreements for asset/liability management, including cash flow hedges to manage interest rate risk and non-designated hedges for commercial loan customers | Metric (Dollars in thousands) | June 30, 2025 | December 31, 2024 | | :---------------------------- | :------------ | :---------------- | | Notional amount (Cash Flow Hedges) | $55,000 | $75,000 | | Weighted average pay rates (Cash Flow Hedges) | 2.60 % | 2.45 % | | Weighted average receive rates (Cash Flow Hedges) | 4.02 % | 4.49 % | | Notional amount (Non-Designated Hedges) | $542,787 | $453,367 | - The notional amount of cash flow hedges decreased from **$75.0 million** at December 31, 2024, to **$55.0 million** at June 30, 2025[131](index=131&type=chunk) - Peoples estimates **$0.9 million** of accumulated other comprehensive income (AOCI) will be reclassified as an addition to interest expense in the next 12 months[130](index=130&type=chunk) [Note 11 Stock-Based Compensation](index=42&type=section&id=Note%2011%20Stock-Based%20Compensation) This note details the company's stock-based compensation plans, including restricted common shares (time-based and performance-based vesting) and the employee stock purchase plan, along with the associated expenses and tax benefits | Metric (Dollars in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :---------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Total stock-based compensation expense | $1,573 | $1,474 | $4,164 | $4,703 | | Recognized tax benefit | $(367) | $(344) | $(971) | $(1,096) | | Net stock-based compensation expense | $1,206 | $1,130 | $3,193 | $3,607 | - Total stock-based compensation expense for the six months ended June 30, 2025, decreased by **$0.539 million (11.5%)** compared to the same period in 2024[139](index=139&type=chunk) - Unrecognized stock-based compensation expense related to unvested restricted common share awards was **$7.6 million** at June 30, 2025, to be recognized over a weighted-average period of **2.0 years**[139](index=139&type=chunk) [Note 12 Revenue](index=43&type=section&id=Note%2012%20Revenue) This note details Peoples' revenue from contracts with customers, categorizing it by source (insurance, trust and investment, electronic banking, deposit account service charges, commercial loan swap fees, other non-interest income) and timing of recognition | Revenue Source (Dollars in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Insurance income | $4,549 | $4,109 | $10,603 | $10,607 | | Trust and investment income | $5,281 | $4,999 | $10,342 | $9,598 | | Electronic banking income | $6,272 | $6,470 | $12,157 | $12,516 | | Deposit account service charges | $4,059 | $4,339 | $8,074 | $8,562 | | Commercial loan swap fees | $734 | $59 | $1,271 | $111 | | Total revenue from contracts with customers | $21,268 | $20,565 | $43,235 | $42,487 | - Total revenue from contracts with customers increased by **$0.703 million (3.42%)** for Q2 2025 YoY, and by **$0.748 million (1.76%)** for the six months ended June 30, 2025 YoY[140](index=140&type=chunk) - Commercial loan swap fees saw a significant increase, from **$59 thousand** in Q2 2024 to **$734 thousand** in Q2 2025, and from **$111 thousand** to **$1.271 million** for the six months ended June 30, 2025[140](index=140&type=chunk) [Note 13 Leases](index=44&type=section&id=Note%2013%20Leases) This note details Peoples' lessor and lessee arrangements, including the classification of leases (sales-type and operating), lease income, net investment in leases, right-of-use (ROU) assets, and lease liabilities | Metric (Dollars in thousands) | June 30, 2025 | December 31, 2024 | | :---------------------------- | :------------ | :---------------- | | Net investment in leases | $400,052 | $406,598 | | Allowance for credit losses - leases | $(19,633) | $(12,893) | | Operating lease ROU assets | $10,404 | $10,419 | | Operating lease liabilities | $10,968 | $10,968 | - Net investment in leases decreased by **$6.546 million (1.61%)** from December 31, 2024, to June 30, 2025[147](index=147&type=chunk) - Lease income for the three months ended June 30, 2025, was **$14.498 million**, an increase from **$14.150 million** in the prior year, driven by gains on early terminated Vantage leases and operating lease income[146](index=146&type=chunk)[211](index=211&type=chunk) [ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](index=47&type=section&id=ITEM%202.%20MANAGEMENT'S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) This section provides management's perspective on Peoples' financial condition and results of operations for the three and six months ended June 30, 2025, compared to prior periods, including an executive summary, detailed analysis of results of operations, and financial condition [EXECUTIVE SUMMARY](index=50&type=section&id=EXECUTIVE%20SUMMARY) The executive summary provides a high-level overview of Peoples' financial performance for Q2 2025 and the first six months of 2025, highlighting net income, EPS, net interest income, provision for credit losses, non-interest income and expense, efficiency ratio, and balance sheet changes | Metric (Dollars in millions, except per share data) | Q2 2025 | Q1 2025 | Q2 2024 | 6M 2025 | 6M 2024 | | :-------------------------------------------------- | :------ | :------ | :------ | :------ | :------ | | Net income | $21.2 | $24.3 | $29.0 | $45.5 | $58.6 | | Diluted EPS | $0.59 | $0.68 | $0.82 | $1.28 | $1.66 | | Net interest income | $87.6 | $85.3 | $86.6 | $172.8 | $173.3 | | Net interest margin | 4.15% | 4.12% | 4.18% | 4.14% | 4.22% | | Provision for credit losses | $16.6 | $10.2 | $5.7 | $26.8 | $11.8 | | Total assets (period-end) | $9,540 | $9,250 | $9,230 | $9,540 | $9,230 | | Total liabilities (period-end) | $8,390 | $8,110 | $8,150 | $8,390 | $8,150 | | Total stockholders' equity (period-end) | $1,153 | $1,138 | $1,078 | $1,153 | $1,078 | - Net income for Q2 2025 decreased by **$7.8 million** YoY, and diluted EPS decreased by **$0.23** YoY, primarily due to a significant increase in the provision for credit losses[166](index=166&type=chunk)[169](index=169&type=chunk) - Net interest income for Q2 2025 increased by **$1.0 million (1%)** YoY, driven by higher loan balances, while net interest margin decreased by **3 basis points** to **4.15%**[167](index=167&type=chunk) - Total assets increased to **$9.54 billion** at June 30, 2025, up from **$9.25 billion** at December 31, 2024, primarily due to increases in period-end loan and lease balances[181](index=181&type=chunk) [RESULTS OF OPERATIONS](index=52&type=section&id=RESULTS%20OF%20OPERATIONS) This section provides a detailed analysis of Peoples' income statement components, including net interest income, provision for credit losses, non-interest income, non-interest expense, income tax expense, and non-GAAP financial measures [Net Interest Income](index=52&type=section&id=Net%20Interest%20Income) Net interest income, Peoples' largest revenue source, is analyzed based on market interest rates, competition, and the composition of earning assets and interest-bearing liabilities, with the net interest margin presented on a fully tax-equivalent (FTE) basis | Metric (Dollars in thousands) | Q2 2025 | Q1 2025 | Q2 2024 | 6M 2025 | 6M 2024 | | :---------------------------- | :------ | :------ | :------ | :------ | :------ | | Net interest income | $87,577 | $85,255 | $86,613 | $172,832 | $173,253 | | FTE net interest income | $87,857 | $85,538 | $86,965 | $173,395 | $173,958 | | Net interest margin | 4.15% | 4.12% | 4.18% | 4.14% | 4.22% | | Accretion income (net of amortization) | $2,600 | $3,500 | $5,800 | $6,100 | $12,300 | - Net interest income for Q2 2025 increased by **$2.3 million** QoQ and **$1.0 million** YoY, primarily driven by lower deposit and borrowing costs[194](index=194&type=chunk)[196](index=196&type=chunk) - Accretion income, net of amortization expense, decreased significantly from **$5.8 million** in Q2 2024 to **$2.6 million** in Q2 2025, impacting loan yields and net interest margin[198](index=198&type=chunk) [Provision for Credit Losses](index=59&type=section&id=Provision%20for%20Credit%20Losses) This section details the provision for credit losses, explaining the factors contributing to its changes, including net charge-offs, reserves for individually-analyzed loans and leases, North Star Leasing division reserves, CECL model updates, economic forecasts, and loan growth | Metric (Dollars in thousands) | Q2 2025 | Q1 2025 | Q2 2024 | 6M 2025 | 6M 2024 | | :---------------------------- | :------ | :------ | :------ | :------ | :------ | | Provision for credit losses | $16,642 | $10,190 | $5,683 | $26,832 | $11,785 | - The provision for credit losses for Q2 2025 was **$16.6 million**, a substantial increase from **$5.7 million** in Q2 2024, driven by net charge-offs, increased reserves for individually-analyzed loans and leases, and deterioration in economic forecasts[199](index=199&type=chunk) - For the first six months of 2025, the provision for credit losses was **$26.8 million**, compared to **$11.8 million** for the same period in 2024, reflecting similar drivers[200](index=200&type=chunk) [Net Gain (Loss) Included in Total Non-Interest Income](index=60&type=section&id=Net%20Gain%20(Loss)%20Included%20in%20Total%20Non-Interest%20Income) This section reports the net gains and losses from investment securities, asset disposals, and other transactions, which are components of total non-interest income | Metric (Dollars in thousands) | Q2 2025 | Q1 2025 | Q2 2024 | 6M 2025 | 6M 2024 | | :---------------------------- | :------ | :------ | :------ | :------ | :------ | | Net (loss) gain on investment securities | $0 | $(2) | $(353) | $(2) | $(354) | | Net loss on asset disposals and other transactions | $(280) | $(361) | $(428) | $(641) | $(769) | | Total net loss | $(280) | $(363) | $(781) | $(643) | $(1,123) | - Net loss on asset disposals and other transactions for Q2 2025 was **$0.28 million**, primarily driven by losses on repossessed assets[202](index=202&type=chunk) - The total net loss for the six months ended June 30, 2025, was **$0.643 million**, an improvement from **$1.123 million** in the same period of 2024[173](index=173&type=chunk)[202](index=202&type=chunk) [Total Non-Interest Income, Excluding Net Gains and Losses](index=60&type=section&id=Total%20Non-Interest%20Income,%20Excluding%20Net%20Gains%20and%20Losses) This section analyzes the various components of non-interest income, excluding net gains and losses, such as electronic banking income, insurance income, trust and investment income, deposit account service charges, lease income, other non-interest income, and mortgage banking income | Income Type (Dollars in thousands) | Q2 2025 | Q1 2025 | Q2 2024 | 6M 2025 | 6M 2024 | | :--------------------------------- | :------ | :------ | :------ | :------ | :------ | | Electronic banking income | $6,272 | $5,885 | $6,470 | $12,157 | $12,516 | | Insurance income | $4,549 | $6,054 | $4,109 | $10,603 | $10,607 | | Trust and investment income | $5,281 | $5,061 | $4,999 | $10,342 | $9,598 | | Deposit account service charges | $4,059 | $4,015 | $4,339 | $8,074 | $8,562 | | Lease income | $4,189 | $3,446 | $2,147 | $7,635 | $4,163 | | Other non-interest income | $1,478 | $1,472 | $1,141 | $2,950 | $2,059 | | Mortgage banking income | $220 | $396 | $243 | $616 | $564 | - Total non-interest income, excluding net gains and losses, increased by **$2.7 million** YoY for Q2 2025, primarily due to a **$2.0 million** increase in lease income and a **$0.4 million** increase in insurance income[174](index=174&type=chunk) - Lease income for Q2 2025 increased significantly YoY, from **$2.147 million** to **$4.189 million**, driven by gains on early terminated Vantage leases and operating lease income[211](index=211&type=chunk) - Trust and investment income increased by **$0.7 million** for the first half of 2025 YoY, reflecting growth in assets under administration and management[175](index=175&type=chunk)[207](index=207&type=chunk) [Non-Interest Expense](index=62&type=section&id=Non-Interest%20Expense) This section provides a detailed analysis of Peoples' non-interest expenses, including salaries and employee benefits, net occupancy and equipment, data processing and software, professional fees, amortization of other intangible assets, and other operational costs | Expense Type (Dollars in thousands) | Q2 2025 | Q1 2025 | Q2 2024 | 6M 2025 | 6M 2024 | | :---------------------------------- | :------ | :------ | :------ | :------ | :------ | | Salaries and employee benefit costs | $38,893 | $39,821 | $36,564 | $78,714 | $75,457 | | Data processing and software expense | $7,356 | $7,005 | $6,743 | $14,361 | $12,512 | | Net occupancy and equipment expense | $5,690 | $5,612 | $6,142 | $11,302 | $12,425 | | Professional fees | $3,610 | $3,087 | $2,935 | $6,697 | $5,902 | | Amortization of other intangible assets | $2,211 | $2,213 | $2,787 | $4,424 | $5,575 | | Total non-interest expense | $70,362 | $70,787 | $68,758 | $141,149 | $137,223 | - Total non-interest expense for Q2 2025 decreased by **$0.4 million** QoQ but increased by **$1.6 million (2%)** YoY, driven by higher salaries and employee benefits, professional fees, and data processing costs[176](index=176&type=chunk)[177](index=177&type=chunk) - Salaries and employee benefit costs increased by **$2.3 million** YoY for Q2 2025, primarily due to higher sales-based incentives, medical costs, and payroll taxes[177](index=177&type=chunk) - Amortization of other intangible assets decreased by **$0.6 million** YoY for Q2 2025 and **$1.2 million** for the first half of 2025, due to decreases in amortization on core deposits and customer relationship intangibles[177](index=177&type=chunk)[226](index=226&type=chunk) [Income Tax Expense](index=64&type=section&id=Income%20Tax%20Expense) This section details Peoples' income tax expense and effective tax rates for the reported periods, explaining the drivers of changes | Metric (Dollars in thousands) | Q2 2025 | Q1 2025 | Q2 2024 | 6M 2025 | 6M 2024 | | :---------------------------- | :------ | :------ | :------ | :------ | :------ | | Income tax expense | $6,241 | $7,041 | $6,869 | $13,282 | $15,137 | | Effective tax rate | 22.7% | 22.4% | 19.1% | 22.6% | 20.5% | - Income tax expense for Q2 2025 decreased by **$0.8 million** QoQ due to lower pre-tax income, but the effective tax rate increased to **22.7%** from **19.1%** in Q2 2024, as the prior year included a one-time benefit[13](index=13&type=chunk)[180](index=180&type=chunk)[235](index=235&type=chunk) [Pre-Provision Net Revenue (Non-US GAAP)](index=64&type=section&id=Pre-Provision%20Net%20Revenue%20(Non-US%20GAAP)) This section defines Pre-Provision Net Revenue (PPNR) as a non-GAAP financial measure, provides its reconciliation, and discusses its trends as an indicator of earnings capacity | Metric (Dollars in thousands) | Q2 2025 | Q1 2025 | Q2 2024 | 6M 2025 | 6M 2024 | | :---------------------------- | :------ | :------ | :------ | :------ | :------ | | Pre-provision net revenue | $44,375 | $41,930 | $42,340 | $86,305 | $86,630 | - PPNR for Q2 2025 increased by **$2.445 million** QoQ and **$2.035 million** YoY, driven by higher net interest income due to lower deposit and borrowing costs[238](index=238&type=chunk) - PPNR for the first half of 2025 decreased slightly YoY, primarily due to lower accretion income, partially offset by lower funding costs[238](index=238&type=chunk) [Efficiency Ratio (Non-US GAAP)](index=65&type=section&id=Efficiency%20Ratio%20(Non-US%20GAAP)) This section defines the efficiency ratio as a non-GAAP financial measure, provides its reconciliation, and analyzes its trend as a key performance indicator | Metric | Q2 2025 | Q1 2025 | Q2 2024 | 6M 2025 | 6M 2024 | | :---------------------------- | :------ | :------ | :------ | :------ | :------ | | Efficiency ratio | 59.25% | 60.68% | 59.19% | 59.96% | 58.62% | - The efficiency ratio improved to **59.25%** in Q2 2025 from **60.68%** in Q1 2025, mainly due to higher net interest income and lower non-interest expenses[179](index=179&type=chunk)[241](index=241&type=chunk) - For the first six months of 2025, the efficiency ratio increased to **59.96%** from **58.62%** in the prior year, due to increased non-interest expense and lower net interest income[179](index=179&type=chunk)[241](index=241&type=chunk) [Return on Average Assets Adjusted for Non-Core Items Ratio (Non-US GAAP)](index=65&type=section&id=Return%20on%20Average%20Assets%20Adjusted%20for%20Non-Core%20Items%20Ratio%20(Non-US%20GAAP)) This section defines and reconciles the non-GAAP measure of return on average assets adjusted for non-core items, providing insights into core operating performance | Metric | Q2 2025 | Q1 2025 | Q2 2024 | 6M 2025 | 6M 2024 | | :---------------------------- | :------ | :------ | :------ | :------ | :------ | | Return on average assets | 0.92% | 1.07% | 1.27% | 0.99% | 1.29% | | Return on average assets adjusted for non-core items | 0.93% | 1.09% | 1.30% | 1.00% | 1.31% | - Both return on average assets and the adjusted ratio decreased in Q2 2025 compared to Q1 2025 and Q2 2024, primarily due to lower annualized net income and an increase in average assets[244](index=244&type=chunk) [Return on Average Tangible Equity Ratio (Non-US GAAP)](index=66&type=section&id=Return%20on%20Average%20Tangible%20Equity%20Ratio%20(Non-US%20GAAP)) This section defines and reconciles the non-GAAP measure of return on average tangible equity, which excludes the impact of goodwill and other intangible assets, offering a conservative view of capital adequacy and performance | Metric | Q2 2025 | Q1 2025 | Q2 2024 | 6M 2025 | 6M 2024 | | :---------------------------- | :------ | :------ | :------ | :------ | :------ | | Return on total average stockholders' equity | 7.42% | 8.79% | 10.99% | 8.09% | 11.15% | | Return on average tangible equity | 12.31% | 14.66% | 19.21% | 13.46% | 19.55% | - Both return on total average stockholders' equity and average tangible equity ratios decreased in Q2 2025 compared to prior periods, driven by lower net income[248](index=248&type=chunk) [FINANCIAL CONDITION](index=68&type=section&id=FINANCIAL%20CONDITION) This section provides an in-depth analysis of Peoples' balance sheet, covering cash and cash equivalents, investment securities, loans and leases, allowance for credit losses, deposits, borrowed funds, capital/stockholders' equity, interest rate sensitivity, liquidity, and off-balance sheet activities [Cash and Cash Equivalents](index=68&type=section&id=Cash%20and%20Cash%20Equivalents) This section discusses the changes in Peoples' cash and cash equivalents, including interest-bearing deposits and excess cash reserves, and how these are influenced by daily liquidity positions and cash flow activities | Metric (Dollars in thousands) | June 30, 2025 | December 31, 2024 | | :---------------------------- | :------------ | :---------------- | | Total cash and cash equivalents | $186,075 | $217,664 | | Interest-bearing deposits in other banks | $63,970 | $108,940 | | Excess cash reserves at FRB of Cleveland | $60,000 | $104,700 | - Total cash and cash equivalents decreased by **$31.589 million** for the first six months of 2025, reflecting cash outflows from investing activities partially offset by inflows from financing and operating activities[20](index=20&type=chunk)[251](index=251&type=chunk) - Excess cash reserves maintained at the FRB of Cleveland decreased from **$104.7 million** at December 31, 2024, to **$60.0 million** at June 30, 2025[250](index=250&type=chunk) [Investment Securities](index=68&type=section&id=Investment%20Securities) This section provides an overview of Peoples' investment portfolio, detailing available-for-sale (AFS) and held-to-maturity (HTM) securities, their fair values, amortized costs, and weighted average yields | Metric (Dollars in thousands) | June 30, 2025 | December 31, 2024 | | :---------------------------- | :------------ | :---------------- | | Total AFS securities (fair value) | $1,051,497 | $1,083,555 | | Total HTM securities (amortized cost) | $900,256 | $775,037 | | Total investment securities (carrying value) | $2,019,291 | $1,918,724 | - Total investment securities (carrying value) increased by **$100.567 million (5.24%)** from December 31, 2024, to June 30, 2025, primarily due to purchases of higher-yielding, longer-duration securities booked to held-to-maturity[252](index=252&type=chunk)[253](index=253&type=chunk) - The net unrealized loss on AFS securities improved from **$(145.827) million** at December 31, 2024, to **$(118.595) million** at June 30, 2025[252](index=252&type=chunk) [Loans and Leases](index=69&type=section&id=Loans%20and%20Leases) This section details the composition and growth of Peoples' loan and lease portfolio, distinguishing between originated and acquired loans, and analyzes loan concentrations by industry and geography | Loan Type (Dollars in thousands) | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :------------------------------- | :------------ | :------------- | :------------ | | Total loans and leases | $6,601,589 | $6,428,526 | $6,325,371 | | Commercial real estate | $2,248,214 | $2,156,013 | $2,074,718 | | Commercial and industrial | $1,407,382 | $1,347,645 | $1,230,290 | | Leases | $400,052 | $406,598 | $419,764 | | Residential real estate | $877,968 | $835,101 | $815,311 | - Total loans and leases increased by **$173.063 million (11% annualized)** from March 31, 2025, to June 30, 2025, driven by commercial and industrial loans, residential real estate loans, and construction loans[255](index=255&type=chunk) - Commercial real estate loans (including construction) comprised **39.2%** of the total loan portfolio at June 30, 2025, with apartment complexes being the largest concentration (**18.4%** of commercial real estate, other)[254](index=254&type=chunk)[257](index=257&type=chunk)[259](index=259&type=chunk) [Allowance for Credit Losses](index=74&type=section&id=Allowance%20for%20Credit%20Losses) This section details the allowance for credit losses (ACL), its allocation across loan categories, and the factors influencing its changes, also presenting net charge-offs and nonperforming assets (NPAs) and related asset quality ratios | Metric (Dollars in thousands) | June 30, 2025 | March 31, 2025 | December 31, 2024 | June 30, 2024 | | :---------------------------- | :------------ | :------------- | :---------------- | :------------ | | Allowance for credit losses | $74,681 | $65,232 | $63,348 | $66,247 | | ACL as a percent of total loans | 1.13% | 1.01% | 1.00% | 1.05% | | Total net charge-offs (Q2) | $6,964 | $8,121 | $9,586 | $4,233 | | Total nonperforming loans (NPLs) | $40,611 | $39,835 | $42,766 | $41,261 | | Total nonperforming assets (NPAs) | $46,624 | $45,815 | $48,936 | $48,670 | | NPAs as a percent of total assets | 0.49% | 0.50% | 0.53% | 0.53% | - The ACL increased by **$9.449 million (14.49%)** from March 31, 2025, to June 30, 2025, driven by increased reserves for individually-analyzed loans/leases, North Star Leasing, CECL model updates, economic forecasts, and loan growth[261](index=261&type=chunk) - Total net charge-offs for Q2 2025 were **$6.964 million**, a decrease from **$8.121 million** in Q1 2025, but higher than **$4.233 million** in Q2 2024, primarily due to the lease portfolio[265](index=265&type=chunk) - NPAs decreased from **0.50%** of total assets at March 31, 2025, to **0.49%** at June 30, 2025, and decreased compared to June 30, 2024, primarily due to reductions in leases 90+ days past due and commercial OREO[267](index=267&type=chunk) [Deposits](index=77&type=section&id=Deposits) This section details the composition and trends of Peoples' deposit balances, including non-interest-bearing and various interest-bearing categories, and discusses the strategic shifts in funding sources | Deposit Type (Dollars in thousands) | June 30, 2025 | March 31, 2025 | December 31, 2024 | June 30, 2024 | | :---------------------------------- | :------------ | :------------- | :---------------- | :------------ | | Total deposits | $7,637,208 | $7,734,749 | $7,590,205 | $7,297,774 | | Non-interest-bearing deposits | $1,530,824 | $1,526,285 | $1,507,661 | $1,472,697 | | Interest-bearing deposits | $6,106,384 | $6,208,464 | $6,082,544 | $5,825,077 | | Retail CDs | $2,005,322 | $1,965,978 | $1,921,415 | $1,812,874 | | Brokered CDs | $442,788 | $458,957 | $554,982 | $412,653 | - Total deposits decreased by **$97.541 million (1.26%)** from March 31, 2025, to June 30, 2025, driven by decreases in governmental, money market, interest-bearing demand, and brokered deposits, partially offset by an increase in retail CDs[269](index=269&type=chunk) - Compared to June 30, 2024, period-end deposit balances increased by **$339.434 million (4.65%)**, primarily due to increases in retail CDs, money market deposits, and non-interest-bearing deposits[270](index=270&type=chunk) [Borrowed Funds](index=78&type=section&id=Borrowed%20Funds) This section provides details on Peoples' short-term and long-term borrowings, outlining their composition and trends, which are influenced by loan growth and deposit changes | Borrowing Type (Dollars in thousands) | June 30, 2025 | March 31, 2025 | December 31, 2024 | June 30, 2024 | | :------------------------------------ | :------------ | :------------- | :---------------- | :------------ | | Total short-term borrowings | $396,860 | $19,228 | $193,474 | $482,733 | | Total long-term borrowings | $232,391 | $237,000 | $238,073 | $234,257 | | Total borrowed funds | $629,251 | $256,228 | $431,547 | $716,990 | - Total borrowed funds increased significantly from **$256.228 million** at March 31, 2025, to **$629.251 million** at June 30, 2025, primarily due to higher FHLB overnight borrowings[273](index=273&type=chunk) - Total borrowed funds decreased compared to June 30, 2024, mainly due to the payoff of the Bank Term Funding Program, partially offset by an increase in FHLB overnight borrowings[273](index=273&type=chunk) [Capital/Stockholders' Equity](index=78&type=section&id=Capital/Stockholders'%20Equity) This section details Peoples' regulatory risk-based capital levels and non-GAAP tangible capital measures, emphasizing the company's strong capital position relative to regulatory requirements | Capital Ratio | June 30, 2025 | March 31, 2025 | December 31, 2024 | June 30, 2024 | | :---------------------------- | :------------ | :------------- | :---------------- | :------------ | | Common Equity Tier 1 | 11.95% | 12.10% | 11.95% | 11.74% | | Tier 1 | 12.39% | 12.54% | 12.39% | 12.18% | | Total (Tier 1 and Tier 2) | 13.71% | 13.75% | 13.58% | 13.44% | | Tier 1 leverage ratio | 9.83% | 9.80% | 9.73% | 9.29% | | Tangible book value per common share | $21.18 | $20.68 | $19.94 | $18.91 | | Tangible equity to tangible assets ratio | 8.26% | 8.34% | 8.01% | 7.61% | - Peoples' capital levels remained substantially higher than the minimum amounts needed to be considered 'well capitalized' institutions, with a capital conservation buffer of **5.71%** at June 30, 2025[274](index=274&type=chunk) - Risk-based capital ratios decreased slightly from March 31, 2025, to June 30, 2025, due to an increase in assets driven by loan growth[275](index=275&type=chunk) - Tangible book value per common share increased to **$21.18** at June 30, 2025, from **$18.91** at June 30, 2024, primarily due to net income over the last twelve months and a decrease in accumulated other comprehensive loss[277](index=277&type=chunk) [Interest Rate Sensitivity and Liquidity](index=79&type=section&id=Interest%20Rate%20Sensitivity%20and%20Liquidity) This section discusses Peoples' management of interest rate risk (IRR) and liquidity, including the use of parallel shock analysis and nonparallel scenarios to estimate impacts on net interest income and economic value of equity, as well as the company's liquid assets | Interest Rate Shock (in Basis Points) | Estimated Increase (Decrease) in Net Interest Income (June 30, 2025) | Estimated (Decrease) Increase in Economic Value of Equity (June 30, 2025) | | :------------------------------------ | :------------------------------------------------------------------- | :------------------------------------------------------------------------ | | +300 | $33,082 (9.0%) | $(173,191) (-8.9%) | | +200 | $24,398 (6.7%) | $(86,948) (-4.5%) | | +100 | $15,288 (4.2%) | $(19,500) (-1.0%) | | -100 | $(14,011) (-3.8%) | $(33,717) (-1.7%) | | -200 | $(26,603) (-7.3%) | $(112,648) (-5.8%) | | -300 | $(19,703) (-5.4%) | $(241,704) (-12.4%) | - At June 30, 2025, Peoples' balance sheet was positioned to benefit from rising interest rates, with estimated net interest income increasing by **9.0%** in a **+300 basis point** parallel shock[281](index=281&type=chunk)[287](index=287&type=chunk) - The bear steepener scenario (short-term rates constant, long-term rates rise) produced an estimated increase of **1.4%** in net interest income and **3.1%** in economic value of equity at June 30, 2025[284](index=284&type=chunk) - At June 30, 2025, Peoples Bank had liquid assets of **$735.9 million**, representing **6.7%** of total assets and unfunded loan commitments, plus an additional **$142.7 million** of unpledged investment securities[289](index=289&type=chunk) [Off-Balance Sheet Activities and Contractual Obligations](index=81&type=section&id=Off-Balance%20Sheet%20Activities%20and%20Contractual%20Obligations) This section describes Peoples' off-balance sheet activities, primarily focusing on loan commitments and standby letters of credit, which represent elements of credit risk not fully recognized on the balance sheet | Off-Balance Sheet Item (Dollars in thousands) | June 30, 2025 | December 31, 2024 | | :-------------------------------------------- | :------------ | :---------------- | | Loan commitments | $1,422,011 | $1,384,044 | | Standby letters of credit | $6,774 | $8,398 | - Loan commitments increased by **$37.967 million (2.74%)** from December 31, 2024, to June 30, 2025[294](index=294&type=chunk) - Standby letters of credit decreased from **$8.398 million** at December 31, 2024, to **$6.774 million** at June 30, 2025[294](index=294&type=chunk) [ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK](index=73&type=section&id=ITEM%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) This item refers to the discussion on 'Interest Rate Sensitivity and Liquidity' within the Management's Discussion and Analysis (MD&A) section for disclosures about market risk - Market risk disclosures are incorporated by reference from the 'FINANCIAL CONDITION - Interest Rate Sensitivity and Liquidity' section of the MD&A[295](index=295&type=chunk) [ITEM 4. CONTROLS AND PROCEDURES](index=73&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES) This section confirms the evaluation of the effectiveness of Peoples' disclosure controls and procedures and reports on any changes in internal control over financial reporting - Management concluded that Peoples' disclosure controls and procedures were effective as of June 30, 2025[296](index=296&type=chunk)[305](index=305&type=chunk) - There were no material changes in Peoples' internal control over financial reporting during the fiscal quarter ended June 30, 2025[297](index=297&type=chunk) PART II – OTHER INFORMATION [ITEM 1. LEGAL PROCEEDINGS](index=74&type=section&id=ITEM%201.%20LEGAL%20PROCEEDINGS) This section addresses various litigation matters involving Peoples or its subsidiaries, stating management's belief that these proceedings will not have a material adverse effect on the company's financial position, results of operations, or liquidity - Peoples is engaged in various litigation matters, including claims of improper loan or deposit practices[299](index=299&type=chunk) - Management believes that damages and other amounts related to pending legal proceedings will not have a material adverse effect on the consolidated financial position, results of operations, or liquidity[299](index=299&type=chunk) [ITEM 1A. RISK FACTORS](index=74&type=section&id=ITEM%201A.%20RISK%20FACTORS) This section states that there have been no material changes to the risk factors previously disclosed in Peoples' 2024 Form 10-K - No material changes have occurred from the risk factors previously disclosed in 'ITEM 1A. RISK FACTORS' of Peoples' 2024 Form 10-K[300](index=300&type=chunk) [ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS](index=74&type=section&id=ITEM%202.%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECURITIES%20AND%20USE%20OF%20PROCEEDS) This section details common share repurchases under the company's share repurchase program and other equity security transactions, including purchases by Peoples Bank under a Rabbi Trust Agreement and shares withheld for income taxes | Period | Total Number of Common Shares Purchased | Average Price Paid per Common Share | Total Number of Common Shares Purchased as Part of Publicly Announced Plans or Programs | | :----------------- | :------------------------------------ | :---------------------------------- | :------------------------------------------------------------------------ | | April 1 – 30, 2025 | 27,181 | $27.62 | 17,116 | | May 1 – 31, 2025 | — | — | — | | June 1 – 30, 2025 | 1,937 | $29.48 | — | | Total | 29,118 | $27.75 | 17,116 | - Peoples repurchased **17,166 common shares** under its **$30.0 million** share repurchase program during Q2 2025[301](index=301&type=chunk) - Other share transactions included purchases by Peoples Bank under a Rabbi Trust Agreement and shares withheld to satisfy income taxes associated with restricted common shares[302](index=302&type=chunk)[303](index=303&type=chunk) [ITEM 3. DEFAULTS UPON SENIOR SECURITIES](index=74&type=section&id=ITEM%203.%20DEFAULTS%20UPON%20SENIOR%20SECURITIES) This item states that there were no defaults upon senior securities during the reporting period - None[304](index=304&type=chunk) [ITEM 4. MINE SAFETY DISCLOSURES](index=75&type=section&id=ITEM%204.%20MINE%20SAFETY%20DISCLOSURES) This item states that mine safety disclosures are not applicable to Peoples Bancorp Inc - Not applicable[307](index=307&type=chunk) [ITEM 5. OTHER INFORMATION](index=75&type=section&id=ITEM%205.%20OTHER%20INFORMATION) This section discloses activity related to Rule 10b5-1 trading arrangements by directors or officers | Action | Rule 10b5-1* | Date | Total Common Shares to be Sold | Expiration Date | | :----- | :----------- | :--- | :----------------------------- | :-------------- | | Adopt | X | 6/5/2025 | 12,000 | 9/8/2025 | - Director Carol A. Schneeberger adopted a Rule 10b5-1 trading arrangement on June 5, 2025, to sell **12,000 common shares** by September 8, 2025[308](index=308&type=chunk) [ITEM 6. EXHIBITS](index=76&type=section&id=ITEM%206.%20EXHIBITS) This section lists all exhibits filed as part of the Form 10-Q, including merger agreements, articles of incorporation, certifications, and XBRL documents - Exhibits include the Agreement and Plan of Merger, Amended Articles of Incorporation, Code of Regulations, Rule 13a-14(a)/15d-14(a) Certifications, Section 1350 Certifications, and Inline XBRL documents[310](index=310&type=chunk)[311](index=311&type=chunk) [SIGNATURES](index=78&type=section&id=SIGNATURES) This section contains the authorized signatures for the Form 10-Q, confirming its submission on behalf of Peoples Bancorp Inc - The report is signed by Tyler Wilcox, President and Chief Executive Officer, and Katie Bailey, Executive Vice President, Chief Financial Officer and Treasurer, on July 31, 2025[316](index=316&type=chunk)

Group 1 - Peoples Bancorp Inc. reported its Q2 2025 results, with the stock closing down 3.68% on the trading day [1] - The quarterly results were not negative overall, but there was a significant miss on earnings per share (EPS) [1]

Core Viewpoint - Peoples Bancorp Inc. is conducting a conference call to discuss its operational results for the second quarter and the first half of 2025, highlighting its financial performance and future outlook [2]. Group 1: Company Overview - The conference call features key company participants including Tyler Wilcox (President, CEO & Director) and Kathryn Bailey (Executive VP, CFO & Treasurer) [1]. - The call is facilitated by an operator and is being recorded for future reference [2]. Group 2: Financial Performance - The earnings release and conference call presentation for the second quarter of 2025 were made available on the company's investor relations website [5]. Group 3: Forward-Looking Statements - Management emphasizes that the commentary will include forward-looking statements regarding future financial performance, based on current expectations and reasonable assumptions [3][4]. - There are inherent risks and uncertainties associated with these forward-looking statements, and actual results may differ materially [4].