Three Months Ended

Nine Months Ended

September 30

June 30,

September 30

September 30

2024

2024

2023

2024

2023

(Dollars in thousands)

(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)

Non-interest expense:

Salaries and employee benefit costs

$           37,085

$           36,564

$            36,608

$       112,542

$       106,661

Data processing and software expense

6,111

6,743

6,288

18,623

15,578

Net occupancy and equipment expense

5,905

6,142

5,501

18,330

15,836

Professional fees

2,896

2,935

3,456

8,798

13,775

Amortization of other intangible assets

2,786

2,787

3,280

8,361

7,951

Electronic banking expense

1,844

1,941

1,836

5,566

5,159

Marketing expense

971

681

1,267

2,708

3,554

FDIC insurance premiums

1,241

1,251

1,260

3,678

3,525

Franchise tax expense

917

760

772

2,558

2,678

Communication expense

814

736

752

2,349

2,089

Other loan expenses

1,178

1,036

856

3,290

2,133

Other non-interest expense

4,342

7,182

9,820

16,510

19,859

  Total non-interest expense

66,090

68,758

71,696

203,313

198,798

Acquisition-related non-interest expense:

Salaries and employee benefit costs

—

—

562

16

5,708

Data processing and software expense

—

—

1,289

(18)

1,290

Net occupancy and equipment expense

—

—

2

—

31

Professional fees

—

—

429

(38)

5,532

Electronic banking expense

—

—

—

(100)

115

Marketing expense

—

—

38

10

61

Communication expense

—

—

1

—

1

Other loan expenses

—

—

—

—

1

Other non-interest expense

(662)

—

2,113

(616)

2,955

  Total acquisition-related non-interest expense

(662)

—

4,434

(746)

15,694

Non-interest expense excluding acquisition-related expense:

Salaries and employee benefit costs

37,085

36,564

36,046

112,526

100,953

Data processing and software expense

6,111

6,743

4,999

18,641

14,288

Net occupancy and equipment expense

5,905

6,142

5,499

18,330

15,805

Professional fees

2,896

2,935

3,027

8,836

8,243

Amortization of other intangible assets

2,786

2,787

3,280

8,361

7,951

Electronic banking expense

1,844

1,941

1,836

5,666

5,044

Marketing expense

971

681

1,229

2,698

3,493

FDIC insurance premiums

1,241

1,251

1,260

3,678

3,525

Franchise tax expense

917

760

772

2,558

2,678

Communication expense

814

736

751

2,349

2,088

Other loan expenses

1,178

1,036

856

3,290

2,132

Other non-interest expense

5,004

7,182

7,707

17,126

16,904

Total non-interest expense excluding acquisition-related expense

$           66,752

$           68,758

$            67,262

$       204,059

$       183,104

(1)

the effects of interest rate policies, 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 in the State of Ohio, the Federal Deposit Insurance Corporation, the Federal Reserve Board and the Consumer Financial Protection Bureau, which may subject Peoples, its subsidiaries, or 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, uncertainties surrounding the upcoming U.S. Presidential election and potential changes in the U.S. Senate and House of Representatives, 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 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;

(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, 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)

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);

(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)

Peoples' ability to integrate the Limestone Merger, which may be unsuccessful, or may be more difficult, time-consuming or costly than expected;

(32)

the risk that expected revenue synergies and cost savings from the Limestone Merger may not be fully realized or realized within the expected time frame;

(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 the 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' Annual Report on Form 10-K for the fiscal year ended December 31, 2023. Peoples encourages readers of this news release to understand forward-looking statements to be strategic objectives rather than absolute targets of future performance. Peoples undertakes no obligation to update these forward-looking statements to reflect events or circumstances after the date of this news release or to reflect the occurrence of unanticipated events, except as required by applicable legal requirements. Copies of documents filed with the SEC are available free of charge at the SEC's website at http://www.sec.gov and/or from Peoples' website - www.peoplesbancorp.com under the "Investor Relations" section.

PER COMMON SHARE DATA AND SELECTED RATIOS (Unaudited)

At or For the Three Months Ended

At or For the Nine Months Ended

September 30,

June 30,

September 30,

September 30,

2024

2024

2023

2024

2023

PER COMMON SHARE:

Earnings per common share:

   Basic

$       0.90

$       0.83

$       0.91

$       2.57

$        2.49

   Diluted

0.89

0.82

0.90

2.55

2.47

Cash dividends declared per common share

0.40

0.40

0.39

1.19

1.16

Book value per common share (a)

31.65

30.36

28.06

31.65

28.06

Tangible book value per common share (a)(b)

20.29

18.91

16.52

20.29

16.52

Closing price of common shares at end of period

$     30.09

$     30.00

$     25.38

$     30.09

$      25.38

SELECTED RATIOS:

Return on average stockholders' equity (c)

11.46 %

10.99 %

12.59 %

11.25 %

11.56 %

Return on average tangible equity (c)(d)

19.40 %

19.21 %

23.04 %

19.50 %

21.05 %

Return on average assets (c)

1.38 %

1.27 %

1.44 %

1.32 %

1.31 %

Return on average assets adjusted for non-core items (c)(e)

1.39 %

1.30 %

1.69 %

1.34 %

1.59 %

Efficiency ratio (f)(h)

55.10 %

59.19 %

58.38 %

57.43 %

59.69 %

Efficiency ratio adjusted for non-core items (g)(h)

55.67 %

59.19 %

52.53 %

57.65 %

54.19 %

Net interest margin (c)(h)

4.27 %

4.18 %

4.70 %

4.24 %

4.60 %

Dividend payout ratio (i)

44.74 %

48.94 %

43.26 %

46.65 %

47.70 %

(a)

Data presented as of the end of the period indicated.

(b)

Tangible book value per common share represents a non-US GAAP financial measure since it excludes the balance sheet impact of goodwill and other intangible assets acquired through acquisitions on stockholders' equity.  Additional information regarding the calculation of this ratio is included at the end of this news release under the caption of "Non-US GAAP Financial Measures (Unaudited)."

(c)

Ratios are presented on an annualized basis.

(d)

Return on average tangible equity represents a non-US GAAP financial measure since it excludes the after-tax impact of amortization of other intangible assets from net income and it excludes the balance sheet impact of average goodwill and other intangible assets acquired through acquisitions on average stockholders' equity. Additional information regarding the calculation of this ratio is included at the end of this news release under the caption of "Non-US GAAP Financial Measures (Unaudited)."

(e)

Return on average assets 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 COVID-19 employee retention credit. Additional information regarding the calculation of this ratio is included at the end of this news release under the caption of "Non-US GAAP Financial Measures (Unaudited)."

(f)

The efficiency ratio is defined as total non-interest expense (less amortization of other intangible assets) as a percentage of fully tax-equivalent net interest income plus total non-interest income (excluding all gains and losses). This ratio represents a non-US GAAP financial measure since it excludes amortization of other intangible assets, and all gains and losses included in earnings, and uses fully tax-equivalent net interest income. Additional information regarding the calculation of this ratio is included at the end of this news release under the caption of "Non-US GAAP Financial Measures (Unaudited)."

(g)

The efficiency ratio adjusted for non-core items is defined as core non-interest expense (less amortization of other intangible assets) as a percentage of fully tax-equivalent net interest income plus total non-interest income (excluding all gains and losses). This ratio represents a non-US GAAP financial measure since it excludes the impact of acquisition-related expenses, COVID-19 employee retention credit, and all gains and losses included in earnings, and uses fully tax-equivalent net interest income. Additional information regarding the calculation of this ratio is included at the end of this news release under the caption of "Non-US GAAP Financial Measures (Unaudited)."

(h)

Interest income and yields are presented on a fully tax-equivalent basis, using a 21% statutory federal corporate income tax rate.

(i)

This ratio is calculated based on dividends declared during the period divided by net income for the period.

CONSOLIDATED STATEMENTS OF INCOME 

Three Months Ended

Nine Months Ended

September 30,

June 30,

September 30,

September 30,

2024

2024

2023

2024

2023

(Dollars in thousands, except per share data)

(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)

Total interest income

$            133,620

$             130,770

$            123,593

$        391,983

$         314,159

Total interest expense

44,708

44,157

30,319

129,818

63,154

Net interest income

88,912

86,613

93,274

262,165

251,005

Provision for credit losses

6,735

5,683

4,053

18,520

13,889

Net interest income after provision for credit losses

82,177

80,930

89,221

243,645

237,116

Non-interest income:

Electronic banking income

6,359

6,470

6,466

18,875

18,375

Trust and investment income

4,882

4,999

4,288

14,480

12,786

Deposit account service charges

4,520

4,339

4,516

13,082

12,192

Insurance income

4,271

4,109

4,250

14,878

13,679

Lease income

1,827

1,116

(66)

4,179

2,730

Bank owned life insurance income

460

1,037

1,375

2,997

2,924

Mortgage banking income

1,051

243

237

1,615

740

Net loss on investment securities

(74)

(353)

(7)

(428)

(2,108)

Net loss on asset disposals and other transactions

(795)

(428)

(307)

(1,564)

(2,218)

Other non-interest income

2,293

2,172

2,452

6,163

4,179

  Total non-interest income

24,794

23,704

23,204

74,277

63,279

Non-interest expense:

Salaries and employee benefit costs

37,085

36,564

36,608

112,542

106,661

Data processing and software expense

6,111

6,743

6,288

18,623

15,578

Net occupancy and equipment expense

5,905

6,142

5,501

18,330

15,836

Professional fees

2,896

2,935

3,456

8,798

13,775

Amortization of other intangible assets

2,786

2,787

3,280

8,361

7,951

Electronic banking expense

1,844

1,941

1,836

5,566

5,159

FDIC insurance expense

1,241

1,251

1,260

3,678

3,525

Other loan expenses

1,178

1,036

856

3,290

2,133

Franchise tax expense

917

760

772

2,558

2,678

Communication expense

814

736

752

2,349

2,089

Marketing expense

971

681

1,267

2,708

3,554

Other non-interest expense

4,342

7,182

9,820

16,510

19,859

  Total non-interest expense

66,090

68,758

71,696

203,313

198,798

  Income before income taxes

40,881

35,876

40,729

114,609

101,597

Income tax expense

9,197

6,869

8,847

24,334

22,059

    Net income

$              31,684

$               29,007

$              31,882

$          90,275

$           79,538

CONSOLIDATED STATEMENTS OF INCOME (Cont.)

Three Months Ended

Nine Months Ended

September 30,

June 30,

September 30,

September 30,

2024

2024

2023

2024

2023

(Dollars in thousands, except per share data)

(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)

PER COMMON SHARE DATA:

Net income available to common shareholders

$              31,684

$               29,007

$              31,882

$          90,275

$           79,538

Less: Dividends paid on unvested common shares

215

218

143

576

388

Less: Undistributed loss allocated to unvested common shares

64

55

79

183

190

Net earnings allocated to common shareholders

$              31,405

$               28,734

$              31,660

$          89,516

$           78,960

Weighted-average common shares outstanding

34,793,704

34,764,489

34,818,346

34,766,281

31,771,061

Effect of potentially dilutive common shares

405,679

353,159

243,551

340,431

206,425

Total weighted-average diluted common shares outstanding

35,199,383

35,117,648

35,061,897

35,106,712

31,977,486

Earnings per common share – basic

$                  0.90

$                   0.83

$                  0.91

$              2.57

$               2.49

Earnings per common share – diluted

$                  0.89

$                   0.82

$                  0.90

$              2.55

$               2.47

Cash dividends declared per common share

$                  0.40

$                   0.40

$                  0.39

$              1.19

$               1.16

Weighted-average common shares outstanding – basic

34,793,704

34,764,489

34,818,346

34,766,281

31,771,061

Weighted-average common shares outstanding – diluted

35,199,383

35,117,648

35,061,897

35,106,712

31,977,486

Common shares outstanding at the end of period

35,538,607

35,498,977

35,395,990

35,538,607

35,395,990

CONSOLIDATED BALANCE SHEETS

September 30,

December 31,

2024

2023

(Dollars in thousands)

(Unaudited)

Assets

Cash and cash equivalents:

  Cash and due from banks

$            139,244

$            111,680

  Interest-bearing deposits in other banks

144,463

315,042

    Total cash and cash equivalents

283,707

426,722

Available-for-sale investment securities, at fair value (amortized cost of

 $1,189,792 at September 30, 2024 and $1,184,288 at December 31, 2023) (a)

1,080,667

1,048,322

Held-to-maturity investment securities, at amortized cost (fair value of

  $636,529 at September 30, 2024 and $612,022 at December 31, 2023) (a)

693,637

683,657

Other investment securities, at cost

55,691

63,421

    Total investment securities (a)

1,829,995

1,795,400

Loans and leases, net of deferred fees and costs (b)

6,271,839

6,159,196

Allowance for credit losses

(66,639)

(62,011)

    Net loans and leases

6,205,200

6,097,185

Loans held for sale

3,246

1,866

Bank premises and equipment, net of accumulated depreciation

105,202

103,856

Bank owned life insurance

143,065

140,554

Goodwill

362,414

362,169

Other intangible assets

41,508

50,003

Other assets

166,134

179,627

    Total assets

$         9,140,471

$         9,157,382

Liabilities

Deposits:

Non-interest-bearing

$         1,453,441

$         1,567,649

Interest-bearing

6,029,716

5,584,648

    Total deposits

7,483,157

7,152,297

Short-term borrowings

175,945

601,121

Long-term borrowings

236,824

216,241

Accrued expenses and other liabilities

119,573

134,189

    Total liabilities

$         8,015,499

$         8,103,848

Stockholders' Equity

Preferred shares, no par value, 50,000 shares authorized, no shares issued at September 30, 2024 or at
December 31, 2023

—

—

Common shares, no par value, 50,000,000 shares authorized, 36,772,459 shares issued at September 30,
2024 and 36,736,041 shares issued at December 31, 2023, including shares in treasury

865,326

865,227

Retained earnings

375,396

327,237

Accumulated other comprehensive loss, net of deferred income taxes

(82,496)

(101,590)

Treasury stock, at cost, 1,323,075 common shares at September 30, 2024 and 1,511,348 common shares
at December 31, 2023

(33,254)

(37,340)

    Total stockholders' equity

1,124,972

1,053,534

    Total liabilities and stockholders' equity

$         9,140,471

$         9,157,382

(a)

Available-for-sale investment securities and held-to-maturity investment securities are presented net of allowance for credit losses of $0 and $236, respectively, as of September 30, 2024 and $0 and $238, respectively, as of December 31, 2023.

(b)

Also referred to throughout this document as "total loans" and "loans held for investment."

SELECTED FINANCIAL INFORMATION (Unaudited)

September 30,

June 30,

March 31,

December 31,

September 30,

(Dollars in thousands)

2024

2024

2024

2023

2023

Loan Portfolio

Construction

$         320,094

$          340,601

$         314,687

$         364,019

$         374,016

Commercial real estate, other

2,180,491

2,195,979

2,243,780

2,196,957

2,189,984

Commercial and industrial

1,250,152

1,258,063

1,214,615

1,184,986

1,128,809

Premium finance

286,983

293,349

238,962

203,177

189,251

Leases

433,009

430,651

422,694

414,060

402,635

Residential real estate

777,542

789,344

781,888

791,095

791,965

Home equity lines of credit

233,109

227,608

221,079

208,675

203,940

Consumer, indirect

677,056

675,054

650,228

666,472

668,371

Consumer, direct

112,198

113,655

113,588

128,769

134,562

Deposit account overdrafts

1,205

1,067

1,306

986

857

    Total loans and leases

$      6,271,839

$       6,325,371

$      6,202,827

$      6,159,196

$      6,084,390

Total acquired loans and leases (a)

$      1,585,552

$       1,686,784

$      1,757,169

$      1,825,129

$      1,925,554

    Total originated loans and leases

$      4,686,287

$       4,638,587

$      4,445,658

$      4,334,067

$      4,158,836

Deposit Balances

Non-interest-bearing deposits (b)

$      1,453,441

$       1,472,697

$      1,468,363

$      1,567,649

$      1,569,095

Interest-bearing deposits:

  Interest-bearing demand accounts (b)

1,065,912

1,083,512

1,107,712

1,144,357

1,181,079

  Retail certificates of deposit

1,884,139

1,812,874

1,680,413

1,443,417

1,198,733

  Money market deposit accounts

894,690

869,159

859,961

775,488

730,902

  Governmental deposit accounts

824,136

766,337

825,170

726,713

761,625

  Savings accounts

864,935

880,542

901,493

919,244

987,170

  Brokered deposits

495,904

412,653

483,444

575,429

608,914

    Total interest-bearing deposits

$      6,029,716

$       5,825,077

$      5,858,193

$      5,584,648

$      5,468,423

    Total deposits

$      7,483,157

$       7,297,774

$      7,326,556

$      7,152,297

$      7,037,518

Total demand deposits (b)

$      2,519,353

$       2,556,209

$      2,576,075

$      2,712,006

$      2,750,174

Asset Quality

Nonperforming assets (NPAs):

  Loans 90+ days past due and accruing

$          27,578

$              7,592

$            7,662

$            6,716

$            9,117

  Nonaccrual loans

34,807

33,669

31,361

25,477

26,187

    Total nonperforming loans (NPLs) (f)

62,385

41,261

39,023

32,193

35,304

  Other real estate owned (OREO)

7,397

7,409

7,238

7,174

7,174

Total NPAs

$          69,782

$            48,670

$          46,261

$          39,367

$          42,478

Criticized loans (c)

$        237,627

$          239,943

$        256,565

$        235,239

$        213,156

Classified loans (d)

133,241

120,180

147,518

120,027

124,836

Allowance for credit losses as a percent of NPLs (f)

106.82 %

160.56 %

166.11 %

194.38 %

178.23 %

NPLs as a percent of total loans (f)

0.99 %

0.65 %

0.63 %

0.52 %

0.58 %

NPAs as a percent of total assets (f)

0.76 %

0.53 %

0.50 %

0.43 %

0.48 %

NPAs as a percent of total loans and OREO (f)

1.11 %

0.77 %

0.74 %

0.64 %

0.70 %

Criticized loans as a percent of total loans (c)

3.79 %

3.79 %

4.14 %

3.82 %

3.50 %

Classified loans as a percent of total loans (d)

2.12 %

1.90 %

2.38 %

1.95 %

2.05 %

Allowance for credit losses as a percent of total loans

1.06 %

1.05 %

1.05 %

1.01 %

1.03 %

Total demand deposits as a percent of total deposits (b)

33.67 %

35.03 %

35.16 %

37.92 %

39.08 %

Capital Information (e)(g)(i)

Common equity tier 1 capital ratio (h)

11.79 %

11.74 %

11.69 %

11.75 %

11.57 %

Tier 1 risk-based capital ratio

12.58 %

12.53 %

12.50 %

12.58 %

12.31 %

Total risk-based capital ratio (tier 1 and tier 2)

13.48 %

13.44 %

13.40 %

13.38 %

13.14 %

Leverage ratio

9.86 %

9.56 %

9.43 %

9.57 %

9.34 %

Common equity tier 1 capital

$         821,192

$          799,710

$         780,017

$         766,691

$         752,728

Tier 1 capital

875,800

854,050

834,089

820,495

801,010

Total capital (tier 1 and tier 2)

938,474

916,073

894,662

873,225

855,054

Total risk-weighted assets

$      6,962,652

$       6,814,149

$      6,674,114

$      6,524,577

$      6,505,779

Total stockholders' equity to total assets

12.31 %

11.68 %

11.46 %

11.50 %

11.11 %

Tangible equity to tangible assets (j)

8.25 %

7.61 %

7.37 %

7.33 %

6.85 %

(a)

Includes all loans and leases acquired and purchased in 2012 and thereafter.

(b)

The sum of non-interest-bearing deposits and interest-bearing demand accounts is considered total demand deposits.

(c)

Includes loans categorized as special mention, substandard, or doubtful.

(d)

Includes loans categorized as substandard or doubtful.

(e)

Data presented as of the end of the period indicated.

(f)

Nonperforming loans include loans 90+ days past due and accruing, renegotiated loans and nonaccrual loans. Nonperforming assets include nonperforming loans and OREO.

(g)

September 30, 2024 data based on preliminary analysis and subject to revision.

(h)

Peoples' capital conservation buffer was 5.24% at September 30, 2024, 5.66% at June 30, 2024, 5.60% at March 31, 2024, 5.38% at December 31, 2023, 5.14% at September 30, 2023, compared to required capital conservation buffer of 2.50%

(i)

Peoples has adopted the five-year transition to phase in the impact of the adoption of CECL on regulatory capital ratios.

(j)

This ratio represents a non-US GAAP financial measure since it excludes the balance sheet impact of intangible assets acquired through acquisitions on both total stockholders' equity and total assets. Additional information regarding the calculation of this ratio is included at the end of this news release under the caption of "Non-US GAAP Financial Measures (Unaudited)."

PROVISION FOR (RECOVERY OF) CREDIT LOSSES INFORMATION

Three Months Ended

Nine Months Ended

September 30,

June 30,

September 30,

September 30,

2024

2024

2023

2024

2023

(Dollars in thousands)

(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)

Provision for credit losses

Provision for credit losses

$           6,279

$              5,397

$            3,764

$      17,510

$     13,188

Provision for checking account overdrafts

456

286

289

1,010

701

  Total provision for credit losses

$           6,735

$              5,683

$            4,053

$      18,520

$     13,889

Net Charge-Offs

Gross charge-offs

$           6,591

$              4,607

$            2,834

$      15,072

$       6,730

Recoveries

507

374

516

1,435

1,672

  Net charge-offs

$           6,084

$              4,233

$            2,318

$      13,637

$       5,058

Net Charge-Offs (Recoveries) by Type

Construction

$                —

$                   —

$                 —

$             —

$              9

Commercial real estate, other

(100)

80

181

109

178

Commercial and industrial

258

46

196

532

(243)

Premium finance

33

51

21

130

55

Leases

3,697

2,204

737

6,959

1,641

Residential real estate

(58)

(4)

23

(65)

25

Home equity lines of credit

2

9

32

4

106

Consumer, indirect

1,634

1,450

777

4,474

2,439

Consumer, direct

143

126

81

486

213

Deposit account overdrafts

475

271

270

1,008

635

  Total net charge-offs

$           6,084

$              4,233

$            2,318

$      13,637

$       5,058

As a percent of average total loans (annualized)

0.38 %

0.27 %

0.15 %

0.29 %

0.12 %

SUPPLEMENTAL INFORMATION (Unaudited)

September 30,

June 30,

March 31,

December 31,

September 30,

(Dollars in thousands)

2024

2024

2024

2023

2023

Trust assets under administration and management

$         2,124,320

$          2,071,832

$           2,061,402

$          2,021,249

$         1,900,488

Brokerage assets under administration and management

1,608,368

1,567,775

1,530,954

1,473,814

1,364,372

Mortgage loans serviced for others

347,719

341,298

348,937

356,784

366,996

Employees (full-time equivalent)

1,496

1,489

1,498

1,478

1,482

CONSOLIDATED AVERAGE BALANCE SHEETS AND NET INTEREST INCOME (Unaudited)

Three Months Ended

September 30, 2024

June 30, 2024

September 30, 2023

(Dollars in thousands)

Balance

Income/

Expense

Yield/ Cost

Balance

Income/

Expense

Yield/ Cost

Balance

Income/

Expense

Yield/ Cost

Assets

Short-term investments

$      57,436

$           954

6.60 %

$    178,094

$    2,502

5.65 %

$      62,609

$       801

5.08 %

Investment securities (a)(b)

1,897,701

16,397

3.46 %

1,870,372

16,144

3.45 %

1,819,248

14,116

3.10 %

Loans (b)(c):

Construction

330,779

6,654

7.87 %

328,943

6,595

7.93 %

400,396

9,983

9.76 %

Commercial real estate, other

2,049,150

37,640

7.19 %

2,074,718

36,420

6.94 %

1,965,927

34,369

6.84 %

Commercial and industrial

1,254,709

24,730

7.71 %

1,230,290

23,897

7.68 %

1,128,420

22,561

7.82 %

Premium finance

288,841

6,052

8.20 %

260,513

5,746

8.73 %

179,390

3,565

7.78 %

Leases

424,549

11,922

10.99 %

419,764

11,982

11.29 %

384,606

11,508

11.71 %

Residential real estate (d)

920,703

12,110

5.26 %

925,629

11,460

4.95 %

952,863

11,879

4.99 %

Home equity lines of credit

231,760

4,836

8.30 %

225,362

4,612

8.23 %

201,973

4,012

7.88 %

Consumer, indirect

681,002

10,372

6.06 %

656,405

9,669

5.92 %

662,462

8,774

5.25 %

Consumer, direct

120,941

2,271

7.47 %

119,048

2,095

7.08 %

139,595

2,416

6.87 %

Total loans

6,302,434

116,587

7.27 %

6,240,672

112,476

7.16 %

6,015,632

109,067

7.13 %

Allowance for credit losses

(66,154)

(64,745)

(60,724)

Net loans

6,236,280

6,175,927

5,954,908

Total earning assets

8,191,417

133,938

6.44 %

8,224,393

131,122

6.34 %

7,836,765

123,984

6.23 %

Goodwill and other intangible assets

405,022

407,864

411,229

Other assets

546,313

548,197

558,415