PEOPLES BANCORP INC (PEBO)

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Management’s Discussion and Analysis (“MD&A”) represents an overview of the results of operations and financial condition of Peoples at and for the three and six months ended June 30, 2026 and June 30, 2025. This MD&A should be read in conjunction with the Unaudited Condensed Consolidated Financial Statements and the Notes thereto.

Certain statements in this Form 10-Q, which are not historical fact, are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. These forward-looking statements are identified by the fact they are not historical facts and include words such as "anticipate," "estimate," "may," "feel," "expect," "believe," "plan," "will," "will likely," "would," "should," "could," "project," "goal," "target," "potential," "seek," "intend," "continue," "remain," and similar expressions.

These forward-looking statements reflect management's current expectations based on all information available to management and its knowledge of Peoples' business and operations. Additionally, Peoples' financial condition, results of operations, plans, objectives, future performance and business are subject to risks and uncertainties that may cause actual results to differ materially. These risks and uncertainties include, but are not limited to:

(1)the effects of interest rate policies, including any changes to such policies that may result from potential changes in the composition of the Federal Reserve Board, changes in the interest rate environment due to economic conditions and/or the fiscal and monetary policy measures undertaken by the U.S. government and the Federal Reserve Board, including changes in the Federal Funds Target Rate, in response to such economic conditions, which may adversely impact interest rates, the interest rate yield curve, interest margins, loan demand and interest rate sensitivity;

(2)the effects of inflationary pressures on borrowers’ liquidity and ability to repay;

(3)the success, impact, and timing of the implementation of Peoples' business strategies and Peoples' ability to manage strategic initiatives, including the interest rate policies of the Federal Reserve Board, the completion and successful integration of acquisitions, including the pending merger with Citizens (the "Citizens merger"), and the expansion of commercial and consumer lending activities;

(4)competitive pressures among financial institutions, or from non-financial institutions, which may increase significantly, including product and pricing pressures, which can in turn impact Peoples' credit spreads, changes to third-party relationships and revenues, changes in the manner of providing services, customer acquisition and retention pressures, and Peoples' ability to attract, develop and retain qualified professionals;

(5)uncertainty regarding the nature, timing, cost, and effect of legislative or regulatory changes or actions, or deposit insurance premium levels, promulgated and to be promulgated by governmental and regulatory agencies in the State of Ohio, the FDIC, the Federal Reserve Board and the Consumer Financial Protection Bureau, which may subject Peoples, its subsidiaries, or one or more acquired companies to a variety of new and more stringent legal and regulatory requirements;

(6)the effects of easing restrictions on participants in the financial services industry;

(7)current and future local, regional, national and international economic conditions (including the impact of persistent inflation, supply chain issues or labor shortages, supply-demand imbalances affecting local real estate prices, high unemployment rates in the local or regional economies in which Peoples operates and/or the U.S. economy generally, the current or future U.S. government shutdown, an increasing federal government budget deficit, the failure of the federal government to raise the federal debt ceiling, potential or imposed tariffs, a U.S. withdrawal from or significant renegotiation of trade agreements, trade wars and other changes in trade regulations, changes in the relationship of the U.S. and U.S. global trading partners), and changes in the federal, state, and local governmental policy and the impact these conditions may have on Peoples, Peoples' customers and Peoples' counterparties, and Peoples' assessment of the impact, which may be different than anticipated;

(8)Peoples may issue equity securities in connection with future acquisitions, which could cause ownership and economic dilution to Peoples' current shareholders;

(9)changes in prepayment speeds, loan originations, levels of nonperforming assets, delinquent loans, charge-offs, and customer and other counterparties' performance and creditworthiness generally, which may be less favorable than expected in light of recent inflationary pressures and continued elevated interest rates, and may adversely impact the amount of interest income generated;

(10)Peoples may have more credit risk and higher credit losses to the extent there are loan concentrations by location or industry of borrowers or collateral;

(11)future credit quality and performance, including expectations regarding future credit losses and the allowance for credit losses;

41

Table of Contents

(12)changes in accounting standards, policies, estimates or procedures may adversely affect Peoples' reported financial condition or results of operations;

(13)the impact of assumptions, estimates and inputs used within models, which may vary materially from actual outcomes, including under the CECL model;

(14)adverse changes in the conditions and trends in the financial markets, including recent inflationary pressures, and the impacts of potential or imposed tariffs on markets, which may adversely affect the fair value of securities within Peoples' investment portfolio, the interest rate sensitivity of Peoples' consolidated balance sheet, and the income generated by Peoples' trust and investment activities;

(15)the volatility from quarter to quarter of mortgage banking income, whether due to interest rates, demand, the fair value of mortgage loans, or other factors;

(16)Peoples' ability to receive dividends from Peoples' subsidiaries;

(17)Peoples' ability to maintain required capital levels and adequate sources of funding and liquidity;

(18)the impact of larger or similar-sized financial institutions encountering problems, such as the failure in 2024 of Republic First Bank, and closures in 2023 of Silicon Valley Bank in California, Signature Bank in New York, and First Republic Bank in California, which may adversely affect the banking industry and/or Peoples' business generation and retention, funding and liquidity, including Peoples' continued ability to grow deposits or maintain adequate deposit levels, and may further result in potential increased regulatory requirements, increased reputational risk and potential impacts to macroeconomic conditions;

(19)Peoples' ability to secure confidential information and deliver products and services through the use of computer systems and telecommunications networks, including those of Peoples' third-party vendors and other service providers, which may prove inadequate, and could adversely affect customer confidence in Peoples and/or result in Peoples incurring a financial loss;

(20)Peoples' ability to anticipate and respond to technological changes, and Peoples' reliance on, and the potential failure of, a number of third-party vendors to perform as expected, including Peoples' primary core banking system provider, which can impact Peoples' ability to respond to customer needs and meet competitive demands;

(21)operational issues stemming from and/or capital spending necessitated by the potential need to adapt to industry changes in information technology systems on which Peoples and Peoples' subsidiaries are highly dependent;

(22)changes in consumer spending, borrowing and saving habits, whether due to changes in retail distribution strategies, consumer preferences and behavior, changes in business and economic conditions, legislative or regulatory initiatives, or other factors, which may be different than anticipated;

(23)the adequacy of Peoples' internal controls and risk management program in the event of changes in strategic, reputational, market, economic, operational, cybersecurity, compliance, legal, asset/liability repricing, liquidity, credit and interest rate risks associated with Peoples' business;

(24)the impact on Peoples' businesses, personnel, facilities, or systems of losses related to acts of fraud, theft, misappropriation or violence;

(25)the impact on Peoples' businesses, as well as on the risks described above, of various domestic or international widespread natural or other disasters (including severe weather events), pandemics, cybersecurity attacks, system failures, civil unrest, military or terrorist activities or international conflicts (including Russia’s war in Ukraine and the ongoing conflicts in the Middle East);

(26)the potential deterioration of the U.S. economy due to financial, political or other shocks;

(27)the potential influence on the U.S. financial markets and economy from the effects of climate change, including any enhanced regulatory, compliance, credit and reputational risks and costs;

(28)the impact on Peoples' businesses and operating results of any costs associated with obtaining rights in intellectual property claimed by others and adequately protecting Peoples' intellectual property;

(29)Peoples' ability to integrate the pending Citizens merger, which may be unsuccessful, or may be more difficult, time-consuming or costly than expected;

(30)the risk that the proposed Citizens merger is not completed as a result of a failure to satisfy the conditions of the Citizens merger, including receipt of required regulatory, shareholder, and other approvals;

(31)the possibility that the anticipated benefits of the proposed Citizens merger, including expected revenue synergies and cost savings, will not be realized or will not be realized within expected time periods;

42

Table of Contents

(32)risks and uncertainties associated with Peoples' entry into new geographic markets and risks resulting from Peoples' inexperience in these new geographic markets;

(33)changes in laws or regulations imposed by Peoples' regulators impacting Peoples' capital actions, including dividend payments and share repurchases;

(34)the vulnerability of Peoples' network and online banking portals, and the systems of parties with whom Peoples contracts, to unauthorized access, computer viruses, phishing schemes, spam attacks, human error, natural disasters, power loss and other security breaches;

(35)regulatory and legal matters, including the failure to resolve any outstanding matters on a timely basis and the potential of new regulatory matters, litigation, or other legal actions, which may result in, among other things, additional costs, fines, penalties, restrictions on our business activities, reputational harm, or other adverse consequences;

(36)Peoples' business may be adversely affected by increased political and regulatory scrutiny of corporate environmental, social and governance ("ESG") practices;

(37)the effect of a fall in stock market prices on Peoples' asset and wealth management business; and

(38)other risk factors relating to the banking industry or Peoples as detailed from time to time in Peoples' reports filed with the Securities and Exchange Commission (the "SEC"), including those risk factors included in the disclosures under the heading "ITEM 1A. RISK FACTORS" of Peoples' 2025 Form 10-K as supplemented by the disclosures under the heading "ITEM 1A. RISK FACTORS" of Peoples' Quarterly Report on Form 10-Q f

[Excerpt truncated for page length; source filing is linked above.]

ITEM 7 MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Forward-Looking Statements

Certain statements made in this Form 10-K, which are not historical fact, are forward-looking statements within the meaning of Section 27A of the Securities Act, Section 21E of the Exchange Act, and the Private Securities Litigation Reform Act of 1995. Words such as “anticipate,” “estimate,” “may,” “feel,” “expect,” “believe,” “plan,” “will,” “will likely,” “would,” “should,” “could,” “project,” “goal,” “target,” “potential,” “seek,” “intend,” “continue,” “remain,” and similar expressions are intended to identify these forward-looking statements but are not the exclusive means of identifying such statements. Forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially. Factors that might cause such a difference include, but are not limited to:

(1)the effects of interest rate policies, including any changes to such policies that may result from potential changes in the composition of the Federal Reserve Board, changes in the interest rate environment due to economic conditions and/or the fiscal and monetary policy measures undertaken by the U.S. government and the Federal Reserve Board, including changes in the Federal Funds Target Rate, in response to such economic conditions, which may adversely impact interest rates, the interest rate yield curve, interest margins, loan demand and interest rate sensitivity;

(2)the effects of inflationary pressures on borrowers’ liquidity and ability to repay;

(3)the success, impact, and timing of the implementation of Peoples’ business strategies and Peoples’ ability to manage strategic initiatives, including the interest rate policies of the Federal Reserve Board, the completion and successful integration of acquisitions, and the expansion of commercial and consumer lending activities;

(4)competitive pressures among financial institutions, or from non-financial institutions, which may increase significantly, including product and pricing pressures, which can in turn impact Peoples’ credit spreads, changes to third-party relationships and revenues, changes in the manner of providing services, customer acquisition and retention pressures, and Peoples’ ability to attract, develop and retain qualified professionals;

(5)uncertainty regarding the nature, timing, cost, and effect of legislative or regulatory changes or actions, or deposit insurance premium levels, promulgated and to be promulgated by governmental and regulatory agencies, including the ODFI, the FDIC, the Federal Reserve Board, and the CFPB, which may subject Peoples, its subsidiaries, or one or more acquired companies to a variety of new and more stringent legal and regulatory requirements;

(6)the effects of easing restrictions on participants in the financial services industry;

(7)current and future local, regional, national and international economic conditions (including the impact of persistent inflation, supply chain issues or labor shortages, supply-demand imbalances affecting local real estate prices, high unemployment rates in the local or regional economies in which Peoples operates and/or the U.S. economy generally, an increasing federal government budget deficit, the failure of the federal government to raise the federal debt ceiling, potential or imposed tariffs, a U.S. withdrawal from or significant renegotiation of trade agreements, trade wars and other changes in trade regulations, and changes in the relationship of the U.S. and U.S. global trading partners), and changes in the federal, state, and local government policy and the impact these conditions may have on Peoples, Peoples’ customers and Peoples’ counterparties, and Peoples’ assessment of the impact, which may be different than anticipated;

(8)Peoples may issue equity securities in connection with future acquisitions, which could cause ownership and economic dilution to Peoples’ current shareholders;

(9)changes in prepayment speeds, loan originations, levels of nonperforming assets, delinquent loans, charge-offs, and customer and other counterparties’ performance and creditworthiness generally, which may be less favorable than expected in light of continued inflationary pressures and elevated interest rates, and may adversely impact the amount of interest income generated;

(10)Peoples may have more credit risk and higher credit losses to the extent there are loan concentrations by location or industry of borrowers or collateral;

(11)future credit quality and performance, including expectations regarding future credit losses and the allowance for credit losses;

(12)changes in accounting standards, policies, estimates or procedures may adversely affect Peoples’ reported financial condition or results of operations;

38

(13)the impact of assumptions, estimates and inputs used within models, which may vary materially from actual outcomes, including under the CECL model;

(14)adverse changes in the conditions and trends in the financial markets, including recent inflationary pressures and the impacts of potential or imposed tariffs on markets, which may adversely affect the fair value of securities within Peoples’ investment portfolio, the interest rate sensitivity of Peoples’ consolidated balance sheet, and the income generated by Peoples’ trust and investment activities;

(15)the volatility from quarter to quarter of mortgage banking income, whether due to interest rates, demand, the fair value of mortgage loans, or other factors;

(16)Peoples’ ability to receive dividends from Peoples’ subsidiaries;

(17)Peoples’ ability to maintain required capital levels and adequate sources of funding and liquidity;

(18)the impact of larger or similar-sized financial institutions encountering problems, such as the failure in 2024 of Republic First Bank, and closures in 2023 of Silicon Valley Bank in California, Signature Bank in New York, First Republic Bank in California, which may adversely affect the banking industry and/or Peoples’ business generation and retention, funding and liquidity, including Peoples’ continued ability to grow deposits or maintain adequate deposit levels, and may further result in potential increased regulatory requirements, increase reputational risk and potential impacts to macroeconomic conditions;

(19)Peoples’ ability to secure confidential information and deliver products and services through the use of computer systems and telecommunications networks, including those of Peoples’ third-party vendors and other service providers, which may prove inadequate, and could adversely affect customer confidence in Peoples and/or result in Peoples incurring a financial loss;

(20)any misappropriation of the confidential information which Peoples possesses could have an adverse impact on Peoples’ business and could result in regulatory actions, litigation and other adverse effects;

(21)Peoples’ ability to anticipate and respond to technological changes, and Peoples’ reliance on, and the potential failure of, a number of third-party vendors to perform as expected, including Peoples’ primary core banking system provider, which can impact Peoples' ability to respond to customer needs and meet competitive demands;

(22)operational issues stemming from and/or capital spending necessitated by the potential need to adapt to industry changes in information technology systems on which Peoples and Peoples’ subsidiaries are highly dependent;

(23)changes in consumer spending, borrowing and saving habits, whether due to changes in retail distribution strategies, consumer preferences and behavior, changes in business and economic conditions, legislative or regulatory initiatives, or other factors, which may be different than anticipated;

(24)the adequacy of Peoples’ internal controls and risk management program in the event of changes in strategic, reputational, market, economic, operational, cybersecurity, compliance, legal, asset/liability repricing, liquidity, credit and interest rate risks associated with Peoples’ business;

(25)the impact on Peoples’ businesses, personnel, facilities or systems of losses related to acts of fraud, theft, misappropriation or violence;

(26)the impact on Peoples’ businesses, as well as on the risks described above, of various domestic or international widespread natural or other disasters including severe weather events, pandemics, cybersecurity attacks, system failures, civil unrest, military or terrorist activities or international conflicts (including Russia’s war in Ukraine and the ongoing conflicts in the Middle East, and mounting tensions with Venezuela);

(27)the potential deterioration of the U.S. economy due to financial, political or other shocks;

(28)the potential influence on the U.S. financial markets and economy from the effects of climate change, including any enhanced regulatory, compliance, credit and reputational risks and costs;

(29)the impact on Peoples’ businesses and operating results of any costs associated with obtaining rights in intellectual property claimed by others and adequately protecting Peoples’ intellectual property;

(30)risks and uncertainties associated with Peoples’ entry into new geographic markets and risks resulting from Peoples’ inexperience in these new geographic markets;

(31)changes in laws or regulations imposed by Peoples’ regulators impacting Peoples’ capital actions, including dividend payments and share repurchases;

39

(32)the vulnerability of Peoples’ network and online banking portals, and the systems of parties with whom Peoples contracts, to unauthorized access, computer viruses, phishing schemes, spam attacks, human error, natural disasters, power loss and other security breaches;

(33)regulatory and legal matters, including the failure to resolve outstanding matters on a timely basis and the potential of new regulatory matters, litigation, or other legal actions, which may result in, among other things, additional costs, fines, penalties, restrictions on our business activities, reputational harm, or other adverse consequences;

(34)Peoples’ business may be adversely affected by increased political and regulatory scrutiny of corporate ESG practices;

(35)the effect of a fall in stock market prices on the asset and wealth management business;

(36)the risk that energy tax credits purchased and used by Peoples to reduce tax liabilities will be disallowed by the Internal Revenue Service; and

(37)other risk factors relating to the banking industry or Peoples as detailed from time to time in Peoples’ reports filed with the SEC, including those risk factors included in the disclosures under the heading “ITEM 1A RISK FACTORS” of this Form 10-K.

All forward-looking statements speak only as of the filing date of this Form 10-K and are expressly qualified in their entirety by the cautionary statements. Although management believes the expectations in these forward-looking statements are based on reasonable assumptions within the bounds of management’s knowledge of Peoples’ business and operations, it is possible that actual results may differ materially from these projections. Additionally, Peoples undertakes no obligation to update these forward-looking statements to reflect events or circumstances after the filing date of this Form 10-K or to reflect the occurrence of unanticipated events except as may be required by applicable legal requirements. Copies of documents filed with the SEC are available free of charge at the SEC’s website at www.sec.gov and/or through Peoples’ website – www.peoplesbancorp.com under the “Investor Relations” section.

The following discussion and analysis of Peoples’ Consolidated Financial Statements is presented to provide insight into management’s assessment of the financial position and results of operations for the periods presented. This discussion and analysis should be read in conjunction with the audited Consolidated Financial Statements and Notes thereto, as well as the ratios and statistics, contained elsewhere in this Form 10-K.

Summary of Significant Transactions and Events

The following is a summary of transactions or events that have impacted or are expected by management to impact Peoples’ results of operations or financial condition:

Mergers and Acquisitions

◦During 2025, Peoples incurred noacquisition-related expenses, compared to $0.2 million for 2024 and $17.0 million for 2023. The acquisition-related expenses in 2024 and 2023 were related to a merger that occurred on the close of business on April 30, 2023, whereby Limestone Bancorp Inc. and Limestone Bank merged with and into Peoples and its wholly-owned subsidiary, Peoples Bank, respectively (collectively, the “Limestone Merger”).

◦On October 25, 2022, Peoples announced the Limestone Merger, a transaction valued at $177.9 million. The Limestone Merger closed as of the close of business on April 30, 2023. Peoples acquired Limestone’s loan portfolio totaling $1.1 billion, $1.2 billion of deposits, $172.7 million of total investment securities, an aggregate of $99.5 million of short-term and long-term borrowings, and $93.5 million of total cash and cash equivalents. Peoples also recorded goodwill in the amount of $68.8 million and other intangible assets of $27.7 million, which consisted of core deposit intangibles.

Other Significant Developments

◦During 2025, Peoples recorded a provision for credit losses of $42.2 million, compared to a provision for credit losses of $24.8 million for 2024 and a provision for credit losses of $15.2 million for 2023. The provision for credit losses during 2025 was driven by (i) net charge-offs, (ii) loan growth, (iii) deterioration in the economic forecasts used within the CECL model, (iv) a periodic refresh in the loss drivers utilized within the CECL model, and (v) an increase in reserves for leases originated by the North Star Leasing division. The provision for credit losses during 2024 was primarily driven by (i) net charge-offs, (ii) an increase in reserves for individually analyzed loans and leases, (iii) economic forecast deterioration, and (iv) loan growth.

◦During the fourth quarter of 2025, Peoples completed a sale of an OREO property acquired in a previous acquisition, which resulted in a loss of $0.9 million.

◦During the fourth quarter of 2025, Peoples redeemed early a tranche of subordinated debt acquired in the Limestone Merger, which resulted in a loss of $0.8 million.

◦During the third quarter of 2025, Peoples executed the sale of $75.0 million of available-for-sale securities for an after-tax loss of $2.7 million.

40

◦During the third quarter of 2023, Peoples terminated its pension plan by settling the remaining benefit obligation of $7.7 million. The pension plan had been closed to new entrants since January 1, 2010. Peoples recorded a settlement charge of $2.4 million in the third quarter of 2023 in relation to the termination of the pension plan.

◦On January 28, 2021, Peoples’ Board of Directors approved a share repurchase program authorizing Peoples to purchase up to an aggregate of $30.0 million of Peoples’ outstanding common shares. During 2025, Peoples repurchased 30,692 common shares totaling $0.8 million under the share repurchase program. During 2024, Peoples repurchased 100,905 common shares totaling $3.0 million under the share repurchase program. During 2023, Peoples repurchased 107,219 common shares totaling $3.0 million under the share repurchase program.

◦On April 3, 2019, Peoples entered into the U.S. Bank Loan Agreement. A Seventh Amendment to the U.S. Bank Loan Agreement, entered into on March 28, 2025, extended the maturity from March 31, 2025 to March 30, 2026. The U.S. Bank Loan Agreement provides Peoples with a revolving line of credit in the maximum aggregate principal amount of $30.0 million that may be used: (i) for working capital purposes; (ii) to finance dividends or other distributions (other than stock dividends and stock splits) on or in respect of Peoples’ capital stock and redemptions, repurchases or other acquisitions of any of Peoples’ capital stock permitted under the U.S. Bank Loan Agreement; and (iii) to finance acquisitions permitted under the U.S. Bank Loan Agreement.

◦To combat the effects of ongoing inflationary pressures, the Federal Reserve Board increased the Federal Funds Target Rate range to 0.25% to 0.50% beginning on March 16, 2022, and continued to raise rates up to 5.25% to 5.50% on July 27, 2023. This rate remained unchanged until the latter half of 2024, when multiple rate cuts reduced the rate down to 4.25% to 4.50%. The Federal Reserve Board cut interest rates three times during 2025, further reducing the rate to 3.50% to 3.75%. The Federal Reserve Board has signaled that future rate reductions continue to be a possibility.

The impact of these transactions, where material, is discussed in the applicable sections of this Management’s Discussion and Analysis of Financial Condition and Results of Operations.

Critical Accounting Policies

The accounting and reporting policies of Peoples conform to US GAAP and to general practices within the financial services industry. A summary of significant accounting policies is contained in “Note 1 Summary of Significant Accounting Policies.” While all of these policies are important to understanding the Consolidated Financial Statements, certain accounting policies require management to exercise judgment and make estimates or assumptions that affect the amounts reported in the Consolidated Financial Statements and accompanying Notes. These estimates and assumptions are based on information available as of the date of the Consolidated Financial Statements; accordingly, as this information changes, the Consolidated Financial Statements could reflect different estimates or assumptions.

Management has identified two accounting policies as those that, due to the judgments, estimates and assumptions inherent in the policies, are critical to an understanding of Peoples’ Consolidated Financial Statements and Management’s Discussion and Analysis of Financial Condition and Results of Operations. The two accounting policies identified were the allowance for credit losses and fair value measurements. These two accounting policies are described in further detail below.

Allowance for Credit Losses

The allowance for credit losses represents Peoples’ estimate of expected credit losses over the expected contractual life of the existing loan portfolio. The allowance for credit losses is estimated by management using relevant available information, from both internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. The allowance for credit losses is measured on a pool basis, with loans collectively evaluated when similar risk characteristics exist. Peoples evaluated risk characteristics, including but not limited to: internal or third-party credit scores or credit ratings, risk ratings or classifications, financial asset type, collateral type, loan size, effective interest rate, term, geographical location, industry of the borrower, vintage, historical or credit loss patterns, and reasonable and supportable forecast periods. Peoples identified 20 segments for which it believes there are similar risk characteristics and utilized a discounted cash flow methodology in determining an allowance for credit losses for each segment.

In estimating credit losses, Peoples uses a loss driver method, which analyzes one or more economic variables to the change in default rate using a regression analysis. Variables that had a strong correlation were selected as economic factors, or variables, for the model. If a single variable was not found to be strongly correlated, additional variables were included. Peoples utilizes U.S. unemployment and Ohio unemployment as economic factors in modeling.

In general, Peoples completes a quarterly evaluation based on several qualitative factors to determine if there should be adjustments made to the allowance for credit losses. These factors include economic conditions, collateral, concentrations, troubled assets, Peoples’ loss trends, peer loss trends, delinquency trends, portfolio composition and loan growth, underwriting, and certain other risks.

Loans that do not share similar risk characteristics are evaluated on an individual basis. The allowance for credit losses related to these specific loans was based on management’s estimate of potential losses as determined by (1) the present value

41

of expected future cash flows, (2) the fair value of collateral if the loan is determined to be collateral dependent, or (3) the loan’s observable market price.

Peoples also completes a quarterly evaluation for unfunded commitments for loans that are not unconditionally cancellable, which includes construction loans, floor plan lines of credit, home equity lines of credit, other credit lines and letters of credit. Peoples performed a study to determine the historical funding rates of unadvanced portions of loans, and applied these funding rates to the unfunded commitments at period end. The loss rates, including qualitative factors, in determining the allowance for credit losses were applied at the segment level to the unfunded commitment amounts to determine the allowance for credit loss liability for unfunded commitments.

There can be no assurance that the allowance for credit losses will be adequate to cover all losses, but management believes the allowance for credit losses at December 31, 2025 was adequate to provide for expected losses from existing loans based on information available at that time. While management uses available information to estimate losses, the ultimate collectability of a substantial portion of the loan portfolio, and the need for future additions to the allowance, will be based on changes in economic conditions and other relevant factors. As such, adverse changes in economic conditions could reduce currently estimated cash flows for both commercial and consumer borrowers, which would likely cause Peoples to experience increases in problem assets, delinquencies and losses on loans in the future.

To demonstrate the sensitivity to key economic parameters used in the measurement of the allowance for credit losses at December 31, 2025, management calculated the difference between the modeled allowance for credit losses at December 31, 2025, compared to one based on an adverse scenario. The adverse scenario reflected increases of 100 basis points in both U.S. and Ohio unemployment. Excluding consideration of general reserve adjustments, this sensitivity analysis would result in a hypothetical increase in the allowance for credit losses of approximately $8.7 million at December 31, 2025.

Fair Value Measurements

Peoples designates certain of its investment securities as available-for-sale, the carrying value of which is impacted by the application of fair value measurements. The fair value used by Peoples in the measurement of its available-for-sale portfolio are obtained from an independent pricing service and represent either quoted market prices for the identical securities (Level 1) or fair values determined by pricing models using a market approach that considers observable market data, such as interest rate volatility, SOFR (or other relevant) yield curves, credit spreads, and prices from market makers and live trading systems (Level 2). Management reviews the valuation methodology and quality controls utilized by the pricing services in management’s overall assessment of the reasonableness of the fair values provided, and challenges prices when management believes a material discrepancy in pricing exists.

Detailed information regarding the fair value of available-for-sale securities can be found in “Note 2 Fair Value of Financial Instruments.”

New Accounting Guidance Pending Adoption

ASU 2025-08 - Financial Instruments - Credit Losses (Topic 326): Purchased Loans: The FASB issued an Accounting Standards Update (“ASU”) 2025-08 on November 12, 2025. The amendments “expand the population of acquired financial assets subject to the gross-up approach in Topic 326.” Specifically, the ASU expands the scope to include purchased “seasoned” loans, which are evaluated after purchase credit deteriorated (“PCD”) loans have been identified. These seasoned loans are defined as non-PCD loans that are obtained in a business combination accounted for using the acquisition method or non-PCD loans that are (i) obtained through a transfer that is not a business combination accounted for using the acquisition method or (ii) initially recognized through the consolidation of a variable interest entity.

The ASU applies to all public entities subject to the guidance in Topic 326, including public business entities, privates companies, and not-for-profit entities. The amendments in this update apply “prospectively to loans that are acquired on or after the initial application date.” The amendments in ASU 2025-08 are effective for all entities for fiscal years beginning after December 15, 2026 and interim periods within those annual reporting periods, with early adoption permitted. Peoples is currently evaluating the impact of this guidance.

EXECUTIVE SUMMARY

Net income for the year ended December 31, 2025, was $106.8 million, compared to $117.2 million for 2024 and $113.4 million for 2023, representing earnings per diluted common share of $2.99, $3.31, and $3.44, respectively. The decreases in 2025 earnings when compared to 2024 and 2023 were driven by increases in provision for credit losses and non-interest expenses. Non-core items, and the related tax effect of each, negatively impacted earnings per diluted common share by $0.13 for 2025 compared to $0.07 for 2024 and $0.59 for 2023.

Net interest income increased 2% to $355.2 million for 2025, compared to $348.7 million for 2024, and $339.4 million for 2023. Net interest margin was 4.14% in 2025, compared to 4.21% in 2024 and 4.55% in 2023. The increase in net interest income when compared to 2024 was driven by lower deposit and borrowing costs. Net interest margin for 2025 decreased 7 basis points when compared to 2024, which was primarily driven by lower accretion income. Net interest margin decreased during 2024 when compared

42

to 2023 largely due to higher borrowing costs, which offset higher earning asset yields. Accretion income, net of amortization expense, totaled $9.6 million for 2025, compared to $25.2 million for both 2024 and 2023, adding 11 basis points, 30 basis points, and 34 basis points, to the net interest margin for 2025, 2024, and 2023, respectively.

The provision for credit losses for 2025 was $42.2 million, compared to a provision of credit losses of $24.8 million for 2024 and $15.2 million for 2023. Net charge-offs for 2025 were $29.4 million, compared to $23.2 million for 2024 and $8.5 million for 2023. Net charge-offs as a percent of average total loans were 0.45% for 2025, 0.37% for 2024 and 0.15% for 2023. The provision for credit losses during 2025 was mainly a result of (i) net charge-offs, (ii) loan growth, (iii) deterioration in the economic forecasts used within the CECL model, (iv) a periodic refresh in loss drivers utilized within the CECL model, and (v) an increase in reserves for leases originated by the North Star Leasing division. The increase in provision for credit losses during 2024 compared to the provision for credit losses during 2023 was primarily driven by (i) net charge-offs, (ii) an increase in reserves for individually analyzed loans and leases, (iii) economic forecast deterioration, and (iv) loan growth. The increase in net-charge-offs as a percent of average total loans was driven by charge-offs on small-ticket leases primarily occurring in the second half of 2024 and continuing into 2025.

Total non-interest income, excluding gains and losses, for 2025 increased $6.7 million, or 6%, when compared to 2024. The increase was because of (i) a $5.1 million increase in lease income, driven by increases in month-to-month lease income and operating lease income, (ii) a $1.9 million increase in trust and investment income due to an increase in assets under administration and management, and (iii) a $0.3 million increase in bank owned life insurance income. These increases were partially offset by a $0.6 million decrease in deposit account service charges due to customer activity. Total non-interest income excluding gains and losses, for 2024 increased $9.1 million, or 10%, when compared to 2023. The increase was driven by (i) a $2.6 million increase in lease income, attributable to operating lease income, (ii) a $2.4 million increase in trust and investment income driven by an increase in assets under administration and management, (iii) a $1.4 million increase in insurance income because of higher contingency income and increased premiums, (iv) a $0.9 million increase in deposit account service charge income, and (v) a $0.7 million increase in mortgage banking income.

Total non-interest expense was $282.3 million for 2025, an increase of $8.5 million, or 3%, compared to 2024. The higher expense was driven by increases of (i) $6.5 million in salaries and employee benefits costs, which were driven by higher sales-based and incentive compensation and medical costs, (ii) $3.9 million in data processing and software expenses, due to costs associated with recent technology projects, and (iii) $1.1 million in operating lease expense, partially offset by a decrease of $2.3 million in amortization of other intangible assets. Total non-interest expense was $273.8 million for 2024, an increase of $7.3 million, or 3%, compared to 2023. Excluding acquisition-related expenses, non-interest expenses increased $24.1 million, or 10%, when compared to 2023 due to increases in salaries and employee benefit costs, data processing and software expenses, and net occupancy expense. The increases were primarily driven by recent growth, including through acquisitions.

Peoples’ efficiency ratio, which is calculated as total non-interest expense less amortization of other intangible assets divided by fully tax-equivalent (“FTE”) net interest income, plus total non-interest income, excluding all gains and losses, was 58.7% for 2025, compared to 58.0% for 2024 and 58.7% for 2023. The efficiency ratio increased when compared to 2024 due to increased non-interest expense. The efficiency ratio for 2024 improved when compared to 2023 due to increased revenue.

Income tax expense totaled $28.0 million for 2025, compared to $32.3 million for 2024 and $31.8 million for 2023. The effective tax rate was 20.8% for 2025, 21.6% for 2024 and 21.9% for 2023. The decreased expense for 2025 compared to 2024 and 2023 was driven by lower pre-tax income. The reduction in the effective tax rate was due to updated state tax rates driven by apportionment, reducing tax expense by $0.9 million, and a $0.7 million benefit relating to tax credits purchased in the fourth quarter of 2025.

Total assets increased 4% to $9.65 billion at December 31, 2025, compared to $9.25 billion at year-end 2024. The increase was primarily due to increases of $398.9 million in loans and leases and $57.4 million in investment securities, partially offset by a decrease of $28.7 million in cash and cash equivalents. The increase in loans and leases compared to December 31, 2024, was driven by increases of $208.0 million in other commercial real estate loans, $188.1 million in commercial and industrial loans, and $30.7 million in indirect consumer loans, partially offset by a decrease of $40.9 million in leases. The increase in investment securities from at December 31, 2024, was driven by purchases of longer duration, higher yielding held-to-maturity investment securities. The decrease in cash and cash equivalents is primarily related to investing activity and the purchase of both available-for-sale and held-to-maturity securities, partially offset by cash provided by operating activities. The allowance for credit losses increased to $75.7 million, or 1.12% of total loans, net of deferred fees and costs, compared to $63.3 million and 1.00%, respectively, at December 31, 2024. The increase in the allowance balance and the ratio of the allowance for credit losses to total loans at December 31, 2025, when compared to at December 31, 2024, was driven by (i) loan growth, (ii) deterioration in the economic forecasts used within the CECL model, (iii) a periodic refresh in the loss drivers utilized within the CECL model, (iv) an increase in reserves for leases originated by the North Star Leasing division, and (v) an increase in individually analyzed loans and leases.

Total liabilities were $8.44 billion at December 31, 2025, an increase of $300.4 million since December 31, 2024, primarily due to increases of $336.8 million in short-term borrowings and $20.0 million in period-end deposits, partially offset by a decrease of $33.9 million in long-term borrowings. Total demand deposit accounts comprised 35% and 34% of total deposits at December 31, 2025, and at December 31, 2024, respectively.

43

Total stockholders’ equity was $1.21 billion at December 31, 2025, an increase of $95.0 million, or 9%, from December 31, 2024, due to net income of $106.8 million for the full year of 2025 and a decrease in other comprehensive loss of $39.8 million, partially offset by dividends paid of $58.1 million. The decrease in other comprehensive loss was the result of changes in the market value of available-for-sale investment securities, which were primarily driven by changes in market interest rates.

Peoples continued to exceed the capital required by the Federal Reserve Board to be deemed “well capitalized.” Peoples’ tier 1 capital ratio was 12.73% at December 31, 2025, versus 12.39% at December 31, 2024, while the total capital ratio was 13.78% at December 31, 2025, versus 13.58% at December 31, 2024. The common equity tier 1 risk-based capital ratio was 12.29% at December 31, 2025, compared to 11.95% at December 31, 2024. Compared to at December 31, 2024, the tier 1 risk-based capital and the total risk-based capital ratios improved due to net income, partially offset by dividends paid. Peoples’ book value and tangible book value per share were $33.78 and $22.77, respectively, at December 31, 2025, compared to $31.26 and $19.94, respectively, at December 31, 2024. Additional information regarding capital requirements can be found in “Note 17 Regulatory Matters.”

44

RESULTS OF OPERATIONS

Net Interest Income

Peoples earns interest income on investments, loans and leases, and incurs interest expense on interest-bearing deposits and borrowed funds. Net interest income, the amount by which interest income exceeds interest expense, remains Peoples’ largest source of revenue and was 76% of total revenue during 2025. The amount of net interest income earned by Peoples is affected by various factors, including changes in market interest rates due primarily to the Federal Reserve Board’s monetary policy, the level and degree of pricing competition for both loans and deposits in Peoples’ markets, and the amount and composition of Peoples’ earning assets and interest-bearing liabilities.

Peoples monitors net interest income performance and manages its balance sheet composition through regular ALCO meetings. The asset-liability management process employed by the ALCO is intended to mitigate the impact of future interest rate changes on Peoples’ net interest income and earnings. However, the frequency and/or magnitude of changes in market interest rates are difficult to predict, and may have a greater impact on net interest income than management is able to mitigate through the asset-liability management process.

As part of the analysis of net interest income, management converts tax-exempt income earned on obligations of states and political subdivisions to the pre-tax equivalent of taxable income using a federal statutory corporate income tax rate of 21% for all periods presented. Management believes the resulting FTE net interest income allows for a more meaningful comparison of tax-exempt income and yields to their taxable equivalents. Net interest margin, which is calculated by dividing FTE net interest income by average interest-earning assets, serves as an important measurement of the net revenue stream generated by the volume, mix and pricing of earning assets and interest-bearing liabilities.

The following table details the calculation of FTE net interest income for the years ended December 31:

45

The following table details Peoples’ average balance sheets, with corresponding income/expense and yield/cost, for the years ended December 31:

(a) Balances are primarily composed of interest bearing demand deposits at the FRB and FHLB.

(b) Average balances are based on carrying value.

(c) Interest income and yields are presented on a fully tax-equivalent basis, using a federal statutory corporate income tax rate of 21% for all periods presented.

46

(d) Average balances include nonaccrual, impaired loans, and loans held for sale. Interest income includes interest earned and received on nonaccrual loans prior to the loans being placed on nonaccrual status. Loan fees included in interest income were immaterial for all periods presented.

(e) Loans held for sale are included in the average loan balances listed. Related interest income on loans originated for sale prior to the loan being sold is included in loan interest income.

(f) Interest related to interest rate swap transactions is included, as appropriate to the transaction, in interest expense on short-term FHLB advances or interest expense on brokered deposits for the periods presented in which FHLB advances and/or brokered deposits were being utilized.

(g) Includes wholesale and other borrowings, which in 2024 was impacted by the Bank Term Funding Program.

Peoples’ average balances compared to the 2023 balances have been impacted by the Limestone Merger as of the close of business on April 30, 2023, which added to average short-term investments, average total investment securities, and average loans, deposit and borrowed funds balances. The asset yields and borrowing costs have moved in tandem with recent interest rate changes.

The following table provides an analysis of the changes in FTE net interest income:

(a)The change in interest due to both rate and volume has been allocated to rate and volume changes in proportion to the relationship of the dollar amounts of the changes in each.

(b)Interest income and yields are presented on a fully tax-equivalent basis, using a federal statutory corporate income tax rate of 21% for all periods presented.

47

FTE net interest income increased $6.3 million, or 2%, for 2025 when compared to 2024, and net interest margin decreased 7 basis points to 4.14%. The increase in net interest income was driven by decreased borrowing costs. The decrease in net interest margin for 2025 compared to 2024 was primarily driven by lower accretion income. Accretion income, net of amortization expense, from acquisitions was $9.6 million for 2025 and $25.2 million for 2024, which added 11 and 30 basis points to net interest margin for 2025 and 2024, respectively.

During 2024, FTE net interest income increased $9.1 million, or 3%, when compared to 2023, and net interest margin decreased 34 basis points to 4.21%. The increase in net interest income was driven by increases in market interest rates and an additional four months of income from the Limestone Merger. The decrease in net interest margin for 2024 compared to 2023 was primarily driven by higher borrowings costs, which offset higher earning asset yields. Accretion income, net of amortization expense, from acquisitions was $25.2 million for 2024 and 2023, which added 30 and 34 basis points to net interest margin for 2024 and 2023, respectively.

Detailed information regarding changes in the Consolidated Balance Sheets can be found under appropriate captions of the “FINANCIAL CONDITION” section of this discussion. Additional information regarding Peoples’ interest rate risk and the potential impact of interest rate changes on Peoples’ results of operations and financial condition can be found later in this discussion under the caption “Interest Rate Sensitivity and Liquidity.”

Provision for Credit Losses

The following table details Peoples’ provision for credit losses recognized for the years ended December 31:

The provision for credit losses represents the amount needed to maintain the appropriate level of the allowance for credit losses based on management’s formal quarterly analysis of the loan portfolio and procedural methodology that estimates the amount of probable credit losses. The CECL methodology utilized by Peoples relies on economic forecasts, as well as other key assumptions including prepayments, probability of default and loss given default.

For 2025, the increase in the provision for credit losses compared to 2024 was mainly a result of (i) an increase in net charge-offs, (ii) loan growth, (iii) deterioration in the economic forecasts used within the CECL model, (iv) a periodic refresh in loss drivers utilized within the CECL model, and (v) an increase in reserves for leases originated by the North Star Leasing division.

During 2024, the provision for credit losses was driven by (i) net charge-offs, (ii) an increase in reserves for individually analyzed loans and leases, (iii) economic forecast deterioration, and (iv) loan growth.

During 2023, the provision for credit losses was driven by (i) the addition of the provision for the loans acquired in the Limestone Merger, (ii) loan growth, and (iii) an increase in net charge-offs, partially offset by a release of reserves on individually analyzed loans and the use of updated loss drivers.

Additional information regarding changes in the allowance for credit losses and loan credit quality can be found later in this discussion under the caption “Allowance for Credit Losses.”

Net Losses Included in Total Non-Interest Income

Net losses include losses on investment securities, asset disposals and other transactions, which are recognized in total non-interest income.

The following table details the net losses for the years ended December 31 recognized by Peoples:

48

For 2025, Peoples’ net loss on investment securities was primarily due to the sale of lower yielding available-for-sale securities in the third quarter of 2025. During 2024, Peoples’ net loss on investment securities was primarily due to the loss recorded on a contingent call of a security in the second quarter of 2024.

Peoples’ net loss on asset disposals and other transactions during 2025 was primarily driven by $1.4 million of net losses on repossessed assets, a $0.9 million loss on the sale of an other real estate owned (“OREO”) property, and a $0.8 million loss on the redemption of subordinated debt. During both 2024 and 2023, Peoples’ net loss on asset disposals was primarily driven by losses recognized on repossessed assets and write-downs of an OREO property for $1.2 million and $1.6 million, respectively.

Total Non-Interest Income Excluding Net Gains and Losses

Peoples generates total non-interest income excluding net gains and losses from five primary sources: electronic banking income (“e-banking”); trust and investment income; insurance income; deposit account service charges; and lease income. Peoples continues to focus on revenue growth from non-interest income sources in order to maintain a diversified revenue stream through greater reliance on total non-interest income excluding net gains and losses. Total non-interest income excluding net gains and losses accounted for 23.6% of Peoples’ total revenues (defined as net interest income plus total non-interest income excluding net gains and losses) in 2025, compared to 22.8% in 2024 and 21.7% in 2023.

The increase in Peoples’ total non-interest income excluding net gains and losses, as a percent of total revenue during 2025 compared to 2024, was largely due to the growth in lease income, primarily attributable to operating lease income, and growth in trust and investment income.

E-banking income comprised the largest portion of Peoples’ total non-interest income excluding net gains and losses, for 2025. The following table shows Peoples’ e-banking income for the years ended December 31:

Peoples’ e-banking services include ATM and debit cards, direct deposit services, internet and mobile banking, and remote deposit capture, and serve as alternative delivery channels to traditional sales offices for providing services to clients. Revenue is derived largely from ATM and debit cards, as other services are mainly provided at no charge to the customers. The amount of e-banking income is largely dependent on the timing and volume of customer activity. For 2025, e-banking income was relatively flat when compared to 2024 and to 2023. In 2025, Peoples’ customers used their debit cards to complete $2.2 billion of transactions, up from $2.0 billion in 2024 and $1.9 billion in 2023.

Peoples’ fiduciary and brokerage revenues continue to be based primarily upon the value of assets under administration and management. The following table details Peoples’ trust and investment income for the years ended December 31:

For 2025, trust and investment income increased compared to all prior periods primarily due to increases in brokerage and fiduciary income, as a result of the increase in assets under management.

The following table details Peoples’ assets under administration and management at December 31:

The increase in total assets under administration and management at December 31, 2025, compared to December 31, 2024, was primarily due to growth, as Peoples added new accounts and the underlying market value of assets under management grew in 2025. During 2024, Peoples’ assets under administration and management increased primarily driven by market value increases.

The following table details Peoples’ insurance income for the years ended December 31:

49

Insurance income for 2025 increased compared to 2024, primarily driven by higher commissions from clientele added during 2025. Insurance income for 2024 increased compared to 2023, primarily driven by higher commissions and market increases for premiums.

Deposit account service charges are based on the costs associated with services provided by Peoples. The following table details deposit account service charges for the years ended December 31:

The amount of deposit account service charges, particularly fees for overdrafts and non-sufficient funds (‘NSF”), is largely dependent on the timing and volume of customer activity. Management periodically evaluates these fees to ensure they are reasonable based on operational costs and similar to fees charged in Peoples’ markets by competitors. Deposit account service charges in 2025 decreased compared to 2024 due to a decrease in customer activity and a change in the NSF fee structure. Deposit account service charges in 2024 increased compared to 2023 due to an increase in customer activity.

The following table details the other items included within Peoples’ total non-interest income for the years ended December 31:

Lease income is primarily comprised of (i) operating leases, (ii) month-to-month lease payments in excess of net investment in the lease, (iii) gains on the early termination of leases, net of any associated purchase accounting adjustments, (iv) fees received for referrals, (v) gains and losses recognized on the sales of residual assets, and (vi) syndication income. The increase in lease income for 2025 when compared to 2024 was driven primarily by an increase in month-to-month lease income and operating lease income from Vantage. The 2024 increase in lease income when compared to 2023 was driven primarily by an increase in operating lease income from Vantage.

Bank owned life insurance income (“BOLI”) for 2025 increased when compared to 2024 primarily due to changes in the cash surrender value of the underlying policies. BOLI income for 2024 remained flat when compared to 2023. Peoples purchased no additional BOLI policies during 2024 or 2025.

Mortgage banking income is comprised mostly of net gains from the origination and sale of long-term, fixed-rate real estate loans in the secondary market, as well as servicing income for sold loans. As a result, the amount of income recognized by Peoples is largely dependent on customer demand and long-term interest rates for residential real estate loans offered in the secondary market. Mortgage banking income decreased for 2025 when compared to 2024 primarily driven by the decreased volume in loans sold as more production has been kept on the balance sheet relative to prior periods. Mortgage banking income increased for 2024 when compared to 2023 driven by higher production. In 2025, Peoples sold approximately $13.6 million of loans to the secondary market with servicing retained and sold approximately $27.5 million in loans with servicing released, compared to approximately $24.1 million and $40.7 million, respectively, in 2024. Peoples sold $2.7 million of loans to the secondary market with servicing retained and $30.7 million of loans with servicing released during 2023. The volume of sales has a direct impact on the amount of mortgage banking income.

For 2025, other non-interest income increased when compared to 2024 due primarily to increased swap fee income which is driven by customer demand and increased wire fees. Other non-interest income increased during 2024, compared to 2023, primarily due to increased swap fee income which is driven by customer demand.

50

Total Non-Interest Expense

Salaries and employee benefit costs remain Peoples’ largest non-interest expense, accounting for over half of total non-interest expense. The following table details Peoples’ salaries and employee benefit costs for the years ended December 31:

Base salaries and wages increased for 2025 compared to 2024, driven by annual merit increases. Base salaries and wages increased in 2024 compared to 2023, driven by an additional four months of salary expense associated with employees added from the Limestone Merger, coupled with annual merit increases.

The increase in sales-based and incentive compensation for 2025 compared to 2024 was primarily due to higher sales levels and the overall company performance measures used in calculating incentive awards. Sales-based and incentive compensation decreased in 2024 compared to 2023, due primarily due to the overall company performance measures used in calculating incentive awards. Peoples’ sales-based and incentive compensation plans are designed to grow core earnings, while not encouraging unnecessary and excessive risk-taking that could threaten the value of Peoples. The sales-based and incentive compensation plans are designed to reward employees for appropriate behaviors and include provisions addressing inappropriate practices with respect to Peoples and its customers, including clawbacks for executives.

The increase in employee benefit costs for 2025 compared to 2024 was mostly due to higher medical costs. Employee benefit costs in 2024 increased compared to 2023 due to increased medical and 401(k) costs reflecting a full year of expenses in 2024 for the additional employees added in the Limestone Merger.

Employee stock-based compensation is generally recognized over the vesting period, which typically ranges from immediate vesting to vesting at the end of three years, with an adjustment made at the vesting date to reverse expense for forfeited awards. The majority of Peoples’ stock-based compensation is attributable to annual equity-based incentive awards to employees, which are awarded in the first quarter and based upon Peoples achieving certain performance goals during the prior year. During the years presented in the table above, Peoples granted restricted common shares to officers and key employees with performance-based vesting periods and time-based vesting periods, generally with a three-year cliff vesting. Employee stock-based compensation for 2025 decreased when compared to 2024 due to less up-front expense on stock grants to certain retirement-eligible employees. Employee stock-based compensation increased for 2024 compared to 2023 due to additional employees primarily as a result of the full year impact from the Limestone Merger.

Deferred personnel costs represent the portion of current period salaries and employee benefit costs considered to be direct loan origination costs. These costs are capitalized and recognized over the life of the loan as a yield adjustment in interest income. As a result, the amount of deferred personnel costs for each period corresponds directly with the volume of loan originations, coupled with the average deferred costs per loan that are updated annually at the beginning of each year. Deferred personnel costs in 2025 increased compared to 2024 and 2023, primarily due to an increase in loan origination volume. Additional information regarding Peoples’ loan activity can be found later in this discussion under the caption “Loans” within “FINANCIAL CONDITION.”

For 2025, payroll taxes and other employment costs increased compared to 2024, primarily due to annual merit increases. Payroll taxes and other employee costs increased during 2024 compared to 2023, primarily due to the employees added from the Limestone Merger coupled with annual merit increases.

Peoples’ net occupancy and equipment expense for the years ended December 31 was comprised of the following:

51

For 2025, net occupancy and equipment expense decreased when compared to 2024 due to an adjustment of property tax accruals resulting from a review of recent assessments. Net occupancy and equipment expense was higher during 2024 when compared to 2023 due to the full year impact of the Limestone Merger and a prior period one-time benefit to rent expense in 2023.

The following table details the other items included within Peoples’ total non-interest expense for the years ended December 31:

Data processing and software expense includes software support, maintenance and depreciation expense. Data processing and software expense for 2025 increased relative to 2024, driven by costs associated with recent technology projects. During 2024, data processing and software expense increased when compared to 2023, driven by software upgrades and implementation of new systems, coupled with the increased size of Peoples’ organization as a result of the Limestone Merger.

Professional fees increased for 2025 when compared to 2024, primarily driven by higher exam and audit fees coupled with higher legal expense. Professional fees during 2024 decreased when compared to 2023, primarily driven by a $6.0 million decrease in acquisition-related expenses, related to the Limestone Merger in 2023.

Amortization of other intangible assets decreased for 2025 when compared to 2024 due to decreases in amortization on core deposits and customer relationship intangibles. Amortization of other intangible assets for 2024 remained relatively flat when compared to 2023.

Peoples’ e-banking expense is comprised of costs associated with debit and ATM cards, as well as internet and mobile banking costs. E-banking expense increased for 2025 when compared to 2024 and to 2023 due to increased processing fees.

FDIC insurance premiums for 2025 increased when compared to 2024 due to the increase in assets, driven by loan growth. FDIC insurance expense increased during 2024 compared to 2023 due to assets acquired in the Limestone Merger. The FDIC quarterly assessment rate is applied to average total assets less average tangible equity, and is based on the leverage ratio, net income before taxes, nonperforming loans as a percent of total assets, OREO, loan mix and asset growth. Additional information regarding Peoples’ FDIC insurance assessments may be found in “ITEM 1 BUSINESS” of this Form 10-K in the section captioned “Supervision and Regulation.”

Other loan expenses during 2025 increased when compared to 2024 primarily due to the increase in Down Payment Assistance Program expenses. Other loan expenses increased in 2024 compared to 2023, primarily due to increases in collection and underwriting costs.

Marketing expense, which includes advertising, donations, marketing campaigns, and other public relations costs, for 2025 decreased when compared to all prior periods, primarily driven by lower advertising expense.

Peoples is subject to state franchise taxes, which are based largely on Peoples’ equity at year-end, in the states where Peoples has a physical presence. Franchise tax expense also includes the Ohio Financial Institution Tax (“FIT”), which is a business privilege tax that is imposed on financial institutions organized for profit and doing business in Ohio. Franchise tax expense increased for 2025

52

when compared to 2024 primarily driven by the Ohio FIT. The Ohio FIT is based on the total equity capital in proportion to the taxpayer’s gross receipts in Ohio. Franchise tax expense decreased in 2024 compared to 2023 primarily driven by the Ohio FIT, which decreased due to lower apportionment in the state.

Communications expense decreased during 2025 when compared to 2024 due to upgrades that were implemented in the prior year. Communications expense increased during 2024 when compared to 2023, due to upgraded networking at certain branches (including new branches acquired in acquisitions and mergers) and increased costs compared to the prior period among certain vendors that provide communication services.

Operating lease expense increased in all years presented due to an increase in the volume of leases originated.

Travel and entertainment expense remained flat compared to 2024 and 2023. Travel and entertainment expense varies between periods due to the seasonality of travel.

Other non-interest expense for 2025 decreased when compared to 2024 due to lower corporate expenses. Other non-interest expense decreased for 2024 when compared to 2023, primarily due to higher acquisition costs and pension expense in the prior year of $2.5 million and $2.1 million, respectively, both of which were partially offset by an increase in miscellaneous expenses of $1.9 million for 2024, which was primarily attributable to one-time corporate expenses.

Income Tax Expense

A key driver for the amount of income tax expense recognized by Peoples each year is the amount of pre-tax income. In addition to the expense recognized, Peoples receives tax benefits from tax-exempt investments and loans, BOLI income, common share awards that settled or vested during the year, investments in tax credit funds, and transferrable tax credits, which reduce Peoples’ effective tax rate. A reconciliation of Peoples’ recorded income tax expense and effective tax rate to the statutory tax rate can be found in “Note 13 Income Taxes.”

For the full year of 2025, income tax expense totaled $28.0 million, compared to $32.3 million in 2024, and $31.8 million in 2023, and the effective tax rate was 20.8% for 2025, compared to 21.6% for 2024, and 21.9% for 2023. The decrease in income tax expense and the effective tax rate when compared to the prior years was impacted by updates to state tax rates driven by apportionment, reducing tax expense in 2025 by $0.9 million and a $0.7 million benefit relating to tax credits purchased in the fourth quarter of 2025. Income tax for 2024 was positively impacted by a $1.1 million one-time benefit recognized in 2024 related to a prior year amended return.

Peoples also recorded a tax benefit of $169,000 in 2025, $48,000 in 2024, and $128,000 in 2023 related to common share awards that settled or vested during the year, with the substantial majority recorded in the first quarter of each year.

Pre-Provision Net Revenue (non-US GAAP)

Pre-provision net revenue (“PPNR”) has become a key financial measure used by state and federal bank regulatory agencies when assessing the capital adequacy of financial institutions. PPNR is defined as net interest income plus total non-interest income, excluding all gains and losses, minus total non-interest expense. PPNR excludes income tax expense. As a result, PPNR represents the earnings capacity that can be either retained in order to build capital or used to absorb unexpected losses and preserve existing capital. PPNR represents a non-US GAAP financial measure since it excludes the provision for credit losses and all gains and losses included in earnings.

The following table provides a reconciliation of this non-US GAAP financial measure to the amounts of income before income taxes reported in Peoples’ Consolidated Financial Statements for the periods presented:

PPNR increased in 2025 when compared to 2024 mostly due to lower borrowing costs and an increase in non-interest income, driven by lease income. During 2024, PPNR increased when compared to 2023 mostly due to increased net interest income and increased non-interest income driven by higher rates and the additional four months of income from the Limestone Merger.

53

Efficiency Ratio (non-US GAAP)

The efficiency ratio is a key financial measure used to monitor performance. The efficiency ratio is calculated as total non-interest expense (less amortization of other intangible assets) as a percentage of FTE net interest income plus total non-interest income excluding net gains and losses. This financial measure is non-US GAAP since it excludes amortization of other intangible assets and all gains and/or losses included in earnings, and uses FTE net interest income.

The following table provides a reconciliation of this non-US GAAP financial measure to the amounts of total non-interest income and total non-interest expense reported in Peoples’ Consolidated Financial Statements for the years presented:

(a)Based on 21% statutory federal corporate income tax rate.

The efficiency ratio for 2025 increased when compared to 2024 due to the increase in non-interest expense. Managing expenses has been a major focus over recent years; however, during this time Peoples has continued to make meaningful investments in its infrastructure and systems. Peoples was primarily impacted in 2024 by the competition for deposits impacting funding costs, and in 2023 net interest income was positively impacted by a rising market interest rate environment.

Return on Average Assets Adjusted for Non-Core Items (non-US GAAP)

In addition to return on average assets, management uses return on average assets adjusted for non-core items to monitor performance. The return on average assets ratio adjusted for non-core items represents a non-US GAAP financial measure since it excludes the after-tax impact of all gains and losses, acquisition-related expenses, and pension settlement charges included in net income.

54

The following table provides a reconciliation of this non-US GAAP financial measure to the amounts of net income reported in Peoples’ Consolidated Financial Statements for the years presented:

(a) Based on a 21% statutory federal corporate income tax rate.

The decrease in the return on average assets and the return on average assets adjusted for non-core items for 2025 when compared to 2024 was primarily driven by an increase in average assets, driven by loan growth, and a decrease in net income from an increase in provision for credit losses. The decrease in the return on average assets and return on average assets adjusted for non-core items for 2024 compared to 2023 was driven by the assets acquired in the Limestone Merger.

55

Return on Average Tangible Equity (non-US GAAP)

The return on average tangible equity ratio is a key financial measure used to monitor performance. The return on tangible equity is calculated as net income (less after-tax impact of amortization of other intangible assets) divided by tangible equity. This measure is non-US GAAP since it excludes amortization of other intangible assets from earnings and the impact of goodwill and other intangible assets acquired through acquisitions on total stockholders’ equity.

The following table provides a reconciliation of this non-US GAAP financial measure to the amounts of total average stockholders’ equity and the return on average stockholders’ equity ratios reported in Peoples’ Consolidated Financial Statements for the years presented:

(a) Based on a 21% statutory federal corporate income tax rate.

The return on total average stockholders’ equity and average tangible equity ratios decreased in 2025 when compared to 2024, primarily driven by an increase in average stockholders’ equity. Return on total average stockholders’ equity and average tangible equity ratios were lower in 2024 relative to 2023 due to higher average stockholders’ equity driven by the full year impact of the Limestone Merger. At the same time, average tangible equity for 2023 was negatively impacted by the Limestone Merger, for which Peoples recorded additional goodwill and other intangible assets.

FINANCIAL CONDITION

Cash and Cash Equivalents

Peoples considers cash and cash equivalents to consist of federal funds sold, cash and balances due from banks, interest-bearing balances in other institutions and other short-term investments that are readily liquid. The amount of cash and cash equivalents fluctuates on a daily basis due to customer activity and Peoples’ liquidity needs. At December 31, 2025, excess cash reserves at the FRB were $73.2 million, compared to $104.7 million at December 31, 2024. The amount of excess cash reserves maintained is dependent upon Peoples’ daily liquidity position, which is driven primarily by changes in deposits, loan balances and unpledged securities.

In 2025, Peoples’ total cash and cash equivalents decreased $28.7 million, due to cash used in investing activities of $424.4 million, which was partially offset by cash provided by financing activities of $261.0 million and operating activities of $134.7 million. Peoples’ investing activities reflected a net increase of $418.2 million in loans held for investment and $425.3 million in purchases of available-for-sale investment securities and held-to-maturity investment securities. These increases were partially offset by $427.9 million in net proceeds from sales, principal payments, calls and prepayments on available-for-sale and held-to-maturity investment securities. Cash provided by financing activities was primarily driven by an increase in overnight borrowings with the FHLB of $190.0 million.

In 2024, Peoples’ total cash and cash equivalents decreased $209.1 million, due to cash used in investing activities of $344.3 million and financing activities of $7.9 million, which were partially offset by cash provided by operating activities of $143.2 million. Peoples’ investing activities reflected a net increase of $199.2 million in loans held for investment and $584.8 million in purchases of

56

available-for-sale investment securities and held-to-maturity investment securities, which were partially offset by $446.6 million in net

proceeds from sales, principal payments, calls and prepayments on available-for-sale and held-to-maturity investment securities.

Financing activities included a net increase of $487.1 million in deposits, a decrease of $457.0 million in short-term borrowings, a net

increase of $20.6 million in long-term borrowings, as well as $56.3 million of cash dividends paid.

Further information regarding the management of Peoples’ liquidity position can be found later in this discussion under “Interest Rate Sensitivity and Liquidity.”

Investment Securities

The following table provides information regarding Peoples’ investment portfolio at December 31:

(a)Amortized cost is presented net of the allowance for credit losses of $236 at December 31, 2025, $237 at December 31, 2024 and $238 at December 31, 2023.

At December 31, 2025, Peoples’ investment securities represented approximately 20.5% of total assets, compared to 20.7% at December 31, 2024. For 2025 and 2024, total investment securities increased compared to the prior year, largely due to purchases of higher yielding, longer duration securities designated as held-to-maturity. During the third quarter of 2025, Peoples executed the sale of $75.0 million of available-for-sale securities for an after-tax loss of $2.7 million. Proceeds were used to reinvest in higher yielding agency securities and to pay down higher cost liabilities. During the first quarter of 2023, Peoples executed the sale of $96.7 million of its lower yielding available-for-sale investment securities for an after-tax loss of $1.6 million. Proceeds from the sale were used to pay down overnight borrowings. During the fourth quarter of 2023, Peoples executed the sale of an additional $36.5 million of its lower yielding available-for-sale investment securities for an after-tax loss of $1.3 million. Proceeds from the sale were used to purchase higher yielding agency investment securities.

Peoples designates certain securities as “held-to-maturity” at the time of their purchase if management determines Peoples would have the intent and ability to hold the purchased securities until maturity. The unrealized gain or loss related to held-to-maturity investment securities does not directly impact total stockholders’ equity, in contrast to the impact from the available-for-sale investment securities portfolio.

Additional information regarding Peoples’ investment portfolio can be found in “Note 3 Investment Securities.”

57

Loans

The following table provides information regarding outstanding loan balances at or for the year ended December 31:

58

(a)Includes all loans acquired, and related loan discount recorded as part of acquisition accounting, in 2012 and thereafter. Loans that were acquired and subsequently re-underwritten are reported as originated upon execution of such credit actions (for example, renewals, and increase in lines of credit).

(b)NM represents “not meaningful.”

As of December 31, 2025, total loans increased $398.9 million, compared to at December 31, 2024, due to growth in other commercial real estate loans, commercial and industrial loans, and indirect consumer loans of $208.0 million, $188.1 million, and $30.7 million, respectively, and were partially offset by a decrease in leases of $40.9 million.

As of December 31, 2024, total loans increased $198.8 million, compared to at December 31, 2023, primarily due to organic growth in our commercial and industrial and premium finance portfolios which increased by $162.7 million and $66.3 million, respectively, and were partially offset by a decrease in commercial real estate loans of $40.9 million.

The following table details the maturities of Peoples’ loan portfolio at December 31, 2025:

59

Loan Concentration

Peoples categorizes its commercial loans according to standard industry classifications and monitors for concentrations in a single industry or multiple industries that could be impacted by changes in economic conditions in a similar manner. Peoples’ commercial lending activities continue to be spread over a diverse range of businesses from all sectors of the economy, with no single industry comprising over 11% of Peoples’ total loan portfolio.

Loans secured by commercial real estate, including commercial construction loans, continue to comprise the largest portion of Peoples’ loan portfolio.

The following table provides information regarding the largest concentrations of commercial real estate loans within the loan portfolio at December 31, 2025:

60

(a)All other total exposures by industry are less than 2% of the Total Exposure.

Peoples’ commercial lending activities continue to focus on lending opportunities inside its primary and secondary market areas within Ohio, Kentucky, West Virginia, Virginia, Washington, D.C. and Maryland. In all other states, the aggregate outstanding balances of commercial loans in each state were less than 4% of total loans at both December 31, 2025 and December 31, 2024.

61

Additional information regarding Peoples’ loan portfolio can be found in “Note 4 Loans and Leases, and Allowance for Credit Losses.”

Allowance for Credit Losses

The amount of the allowance for credit losses at the end of each period represents management’s estimate of expected credit losses from existing loans based upon its formal quarterly analysis of the loan portfolio described in the “Critical Accounting Policies” section of this discussion. While this process involves making allocations to specific loans and pools of loans, the entire allowance is available for all losses incurred within the loan portfolio.

The following details management’s allocation of the allowance for credit losses at December 31:

The increase in the allowance balance at December 31, 2025, when compared to at December 31, 2024, was driven by (i) loan growth, (ii) deterioration in the economic forecasts used within the CECL model, (iii) a periodic refresh in the loss drivers utilized within the CECL model, (iv) an increase in reserves for leases originated by the North Star Leasing division, and (v) an increase in individually analyzed loans and leases.

The increase in the allowance balance at December 31, 2024, when compared to at December 31, 2023, was driven by an increase in reserves for individually analyzed loans and leases, as well as loan growth.

Additional information regarding Peoples’ allowance for credit losses can be found in “Note 1 Summary of Significant Accounting Policies” and “Note 4 Loans and Leases, and Allowance for Credit Losses.”

The following table summarizes the changes in the allowance for credit losses for the years ended December 31:

62

(a)Amount does not include the provision for unfunded commitment liability.

Net charge-offs as a percent of average total loans for 2025 increased to 0.45% compared to 0.37% at 2024. The increase over all periods presented was due to an increase in charge-offs on small-ticket leases.

During 2024, net charge-offs as a percent of average total loans increased to 0.37%, compared to 0.15% for 2023. The increase was due to an increase in charge-offs on small-ticket leases that occurred during the second half of 2024.

63

The following table details Peoples’ nonperforming assets at December 31: