Peoples' loan portfolio consists of various types of loans and leases originated primarily as a result of lending opportunities within Peoples' footprint. Peoples also originates insurance premium finance loans nationwide through its Peoples Premium Finance division, and originates leases nationwide through its North Star Leasing ("NSL") division and its Vantage Financial, LLC ("Vantage") subsidiary.


(Dollars in thousands)	September 30, 2024		December 31, 2023
Construction	$	320,094	$	364,019
Commercial real estate, other	2,180,491		2,196,957
Commercial and industrial	1,250,152		1,184,986
Premium finance	286,983		203,177
Leases	433,009		414,060
Residential real estate	777,542		791,095
Home equity lines of credit	233,109		208,675
Consumer, indirect	677,056		666,472
Consumer, direct	112,198		128,769
Deposit account overdrafts	1,205		986
Total loans, at amortized cost	$	6,271,839	$	6,159,196


	September 30, 2024				December 31, 2023
(Dollars in thousands)	Nonaccrual (a)		Accruing Loans 90+ Days Past Due		Nonaccrual (a)		Accruing Loans 90+ Days Past Due

Commercial real estate, other	4,416		3,838		2,816		78
Commercial and industrial	7,008		413		2,758		316
Premium finance	—		7,771		—		1,355
Leases	12,428		12,675		8,436		3,826
Residential real estate	6,658		2,442		7,921		877
Home equity lines of credit	1,461		292		1,022		171
Consumer, indirect	2,726		46		2,412		68
Consumer, direct	110		101		112		25
Total loans, at amortized cost	$	34,807	$	27,578	$	25,477	$	6,716

During the first nine months of 2024, nonaccrual loans increased compared to at December 31, 2023, which was primarily due to twelve large leases totaling $3.6 million and four commercial real estate loans of approximately $1.1 million that went on nonaccrual status during 2024. The increase in accruing loans 90+ days past due at September 30, 2024, when compared to at December 31, 2023, was primarily due to an increase in leases that were 90+ days past due and accruing of $8.8 million, which was administrative in nature, an increase in premium finance loans loans of approximately $6.4 million, and an increase in commercial real estate loans of approximately $3.8 million. The increase in past due premium finance loans carry low credit risk, due to the ability to cancel premiums and recover the majority of the receivable from the insurer.


	Loans Past Due								Current Loans		Total Loans
(Dollars in thousands)	30 - 59 days		60 - 89 days		90 + Days		Total
September 30, 2024
Construction	$	—	$	—	$	—	$	—	$	320,094	$	320,094
Commercial real estate, other	1,349		2,437		7,073		10,859		2,169,632		2,180,491
Commercial and industrial	3,818		674		5,159		9,651		1,240,501		1,250,152
Premium finance	2,267		1,192		7,771		11,230		275,753		286,983
Leases	3,417		10,788		24,894		39,099		393,910		433,009
Residential real estate	3,144		3,100		4,915		11,159		766,383		777,542
Home equity lines of credit	1,324		276		1,094		2,694		230,415		233,109
Consumer, indirect	7,405		1,542		1,436		10,383		666,673		677,056
Consumer, direct	619		76		168		863		111,335		112,198
Deposit account overdrafts	—		—		—		—		1,205		1,205
Total loans, at amortized cost	$	23,343	$	20,085	$	52,510	$	95,938	$	6,175,901	$	6,271,839
December 31, 2023
Construction	$	13	$	52	$	—	$	65	$	363,954	$	364,019
Commercial real estate, other	2,728		4,556		1,572		8,856		2,188,101		2,196,957
Commercial and industrial	1,717		1,491		3,052		6,260		1,178,726		1,184,986
Premium finance	1,288		867		1,355		3,510		199,667		203,177
Leases	12,743		4,932		12,014		29,689		384,371		414,060
Residential real estate	14,021		2,733		4,481		21,235		769,860		791,095
Home equity lines of credit	1,561		691		683		2,935		205,740		208,675
Consumer, indirect	7,488		1,550		1,230		10,268		656,204		666,472
Consumer, direct	536		282		43		861		127,908		128,769
Deposit account overdrafts	—		—		—		—		986		986
Total loans, at amortized cost	$	42,095	$	17,154	$	24,430	$	83,679	$	6,075,517	$	6,159,196

As discussed in "Note 1 Summary of Significant Accounting Policies" of the Notes to the Consolidated Financial Statements included in Peoples' 2023 Form 10-K, Peoples categorizes the majority of its loans into risk categories based upon an established risk grading matrix using a scale of 1 to 8. Loan grades are assigned at the time a new loan or lending commitment is extended by Peoples and may be changed at any time when circumstances warrant. Commercial loans to borrowers with an aggregate unpaid principal balance in excess of $1.0 million are reviewed at least on an annual basis for possible credit deterioration. Commercial leases, as well as loan relationships whose aggregate credit exposure to Peoples is equal to or less than $1.0 million, are reviewed on an event driven basis. Triggers for review include knowledge of adverse events affecting the borrower's business, receipt of financial statements indicating deteriorating credit quality or other similar events. Adversely classified loans are reviewed on a quarterly basis. A description of the general characteristics of the risk grades used by Peoples, follows:

“Special Mention” (grade 5): Loans in this risk grade are the equivalent of the regulatory definition of “Other Assets Especially Mentioned.” Loans in this risk category possess some credit deficiency or potential weakness, which requires a high level of management attention. Potential weaknesses include declining trends in operating earnings and cash flows and/or reliance on a secondary source of repayment. If left uncorrected, these potential weaknesses may result in noticeable deterioration of the repayment prospects for the loan or in Peoples' credit position.

“Substandard” (grade 6): Loans in this risk grade are inadequately protected by the borrower's current financial condition and payment capability or the collateral pledged, if any. Loans so classified have one or more well-defined weaknesses that jeopardize the orderly repayment of the loans. They are characterized by the distinct possibility that Peoples will sustain some loss if the weaknesses are not corrected.

“Doubtful” (grade 7): Loans in this risk grade have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or orderly repayment in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable. Possibility of loss is extremely high, but because of certain important and reasonably specific factors that may work to the advantage and strengthening of the exposure, classification of each of these loans as an estimated loss is deferred until its more exact status may be determined.

“Loss” (grade 8): Loans in this risk grade are considered to be non-collectible and of such little value that their continuance as bankable assets is not warranted. This does not mean a loan has absolutely no recovery value, but rather it is neither practical nor desirable to defer writing off the loan, even though partial recovery may be obtained in the future. Charge-offs against the allowance for credit losses are taken during the period in which the loan becomes uncollectible. Consequently, Peoples typically does not maintain a recorded investment in loans within this category.

Consumer loans and other smaller-balance loans are evaluated and categorized as "substandard," "doubtful" or "loss" based upon the regulatory definition of these classes and consistent with regulatory requirements. Leases are categorized as "special mention", "substandard", or "loss" based upon delinquency status and the prospect of collecting the remaining net investment balance owed under the lease. All other loans not evaluated individually, nor meeting the regulatory conditions to be categorized as described above, would be considered as being "not rated."



	Term Loans at Amortized Cost by Origination Year														Revolving Loans Converted to Term
(Dollars in thousands)	2024		2023		2022		2021		2020		Prior		Revolving Loans				Total Loans
Construction
Pass	$	30,953	$	137,659	$	96,715	$	34,864	$	3,179	$	13,887	$	—	$	—	$	317,257
Special mention	—		—		—		—		—		117		—		—		117
Substandard	—		1,172		1,548		—		—		—		—		—		2,720


Total	30,953		138,831		98,263		34,864		3,179		14,004		—		—		320,094
Current period gross charge-offs	—		—		—		—		—		—						—
Commercial real estate, other
Pass	81,458		213,204		343,926		372,653		207,222		819,922		40,812		—		2,079,197
Special mention	273		4,197		13,939		1,649		1,312		8,059		291		32		29,720
Substandard	147		2,024		2,720		18,487		9,326		38,233		627		—		71,564
Doubtful	—		—		—		—		—		10		—		—		10

Total	81,878		219,425		360,585		392,789		217,860		866,224		41,730		32		2,180,491
Current period gross charge-offs	—		—		212		—		—		—						212
Commercial and industrial
Pass	152,272		209,996		139,519		151,660		70,178		183,600		245,498		4,865		1,152,723
Special mention	51		3,591		10,820		5,095		11,569		16,937		19,815		5,500		67,878
Substandard	210		250		4,567		12,962		4,570		1,800		3,061		—		27,420
Doubtful	—		—		1,968		—		—		163		—		—		2,131

Total	152,533		213,837		156,874		169,717		86,317		202,500		268,374		10,365		1,250,152



	Term Loans at Amortized Cost by Origination Year							Revolving Loans Converted to Term
(Dollars in thousands)	2024	2023	2022	2021	2020	Prior	Revolving Loans		Total Loans
Current period gross charge-offs	—	—	—	15	78	457			550
Premium Finance
Pass	275,918	10,906	159	—	—	—	—	—	286,983




Total	275,918	10,906	159	—	—	—	—	—	286,983
Current period gross charge-offs	3	110	33	—	—	—			146
Leases
Pass	157,377	141,799	74,242	30,513	6,061	2,426	—	—	412,418
Special mention	2,660	1,371	2,555	57	17	3	—	—	6,663
Substandard	479	4,516	2,580	1,569	384	380	—	—	9,908
Doubtful	686	1,824	722	596	—	—	—	—	3,828
Loss	—	—	—	192	—	—	—	—	192
Total	161,202	149,510	80,099	32,927	6,462	2,809	—	—	433,009
Current period gross charge-offs	473	2,560	3,530	731	68	38			7,400
Residential real estate
Pass	59,312	68,606	86,717	131,488	53,439	367,695	—	—	767,257

Substandard	162	613	264	756	172	8,212	—	—	10,179

Loss	10	28	—	—	—	68	—	—	106
Total	59,484	69,247	86,981	132,244	53,611	375,975	—	—	777,542
Current period gross charge-offs	—	—	46	5	—	93			144
Home equity lines of credit
Pass	44,119	39,248	38,761	31,113	17,335	60,983	25	1,463	231,584

Substandard	—	19	168	46	34	1,250	—	—	1,517
Loss	—	—	—	—	—	8	—	—	8
Total	44,119	39,267	38,929	31,159	17,369	62,241	25	1,463	233,109
Current period gross charge-offs	—	—	—	—	—	11			11
Consumer, indirect
Pass	193,608	193,746	165,610	65,132	36,265	19,405	—	—	673,766

Substandard	173	755	861	797	327	317	—	—	3,230

Loss	9	10	15	14	—	12	—	—	60
Total	193,790	194,511	166,486	65,943	36,592	19,734	—	—	677,056
Current period gross charge-offs	211	1,730	1,426	598	130	753			4,848
Consumer, direct
Pass	37,653	28,873	24,753	11,161	5,007	4,507	—	—	111,954



	Term Loans at Amortized Cost by Origination Year													Revolving Loans Converted to Term
(Dollars in thousands)	2024		2023		2022		2021		2020		Prior		Revolving Loans		Total Loans
Substandard	—		55		50		21		6		99		—	—	231

Loss	10		3		—		—		—		—		—	—	13
Total	37,663		28,931		24,803		11,182		5,013		4,606		—	—	112,198
Current period gross charge-offs	2		96		197		43		11		180				529
Deposit account overdrafts	1,205		—		—		—		—		—		—	—	1,205
Current period gross charge-offs	1,232		—		—		—		—		—				1,232
Total loans, at amortized cost	1,038,745		1,064,465		1,013,179		870,825		426,403		1,548,093		310,129	11,860	6,271,839
Total current period gross charge-offs	$	1,921	$	4,496	$	5,444	$	1,392	$	287	$	1,532			$	15,072



	Term Loans at Amortized Cost by Origination Year
(Dollars in thousands)	2023		2022		2021		2020		2019		Prior		Revolving Loans		Revolving Loans Converted to Term		Total Loans
Construction
Pass	$	80,273	$	141,245	$	85,913	$	27,169	$	9,995	$	12,723	$	—	$	—	$	357,318
Special mention	—		3,757		—		—		—		123		—		—		3,880
Substandard	1,200		1,590		—		—		—		31		—		—		2,821


Total	81,473		146,592		85,913		27,169		9,995		12,877		—		—		364,019
Current period gross charge-offs	—		—		9		—		—		—						9
Commercial real estate, other
Pass	199,565		327,762		366,752		227,604		262,099		650,265		37,177		189		2,071,224
Special mention	999		12,975		4,850		10,324		7,074		22,186		408		41		58,816
Substandard	287		2,421		5,878		8,679		1,972		47,213		457		—		66,907
Doubtful	—		—		—		—		—		10		—		—		10

Total	200,851		343,158		377,480		246,607		271,145		719,674		38,042		230		2,196,957
Current period gross charge-offs	—		—		—		39		—		575						614
Commercial and industrial
Pass	225,894		180,068		212,938		86,934		55,434		132,675		213,714		38		1,107,657
Special mention	540		12,051		533		9,723		4,722		6,336		16,236		8,614		50,141
Substandard	78		6,441		5,104		5,617		1,602		6,278		1,889		779		27,009
Doubtful	—		—		—		—		—		179		—		—		179

Total	226,512		198,560		218,575		102,274		61,758		145,468		231,839		9,431		1,184,986
Current period gross charge-offs	—		36		202		25		173		415						851
Premium finance
Pass	201,659		1,517		1		—		—		—		—		—		203,177
Total	201,659		1,517		1		—		—		—		—		—		203,177
Current period gross charge-offs	25		97		—		—		—		—						122



	Term Loans at Amortized Cost by Origination Year
(Dollars in thousands)	2023		2022		2021		2020		2019		Prior		Revolving Loans	Revolving Loans Converted to Term	Total Loans
Leases
Pass	216,559		114,327		51,307		14,061		4,883		1,501		—	—	402,638
Special mention	363		1,529		476		81		1		5		—	—	2,455
Substandard	1,937		3,006		2,944		448		321		311		—	—	8,967
Total	218,859		118,862		54,727		14,590		5,205		1,817		—	—	414,060
Current period gross charge-offs	963		1,328		1,173		233		165		135				3,997
Residential real estate
Pass	75,957		91,506		140,157		58,144		45,507		369,552		—	—	780,823

Substandard	43		243		585		182		529		8,604		—	—	10,186

Loss	—		—		—		—		—		86		—	—	86
Total	76,000		91,749		140,742		58,326		46,036		378,242		—	—	791,095
Current period gross charge-offs	—		—		—		—		—		170				170
Home equity lines of credit
Pass	39,706		42,565		33,406		19,838		14,297		57,482		27	1,346	207,321

Substandard	19		—		61		34		123		1,109		—	—	1,346

Loss	—		—		—		—		—		8		—	—	8
Total	39,725		42,565		33,467		19,872		14,420		58,599		27	1,346	208,675
Current period gross charge-offs	—		—		—		—		—		110				110
Consumer, indirect
Pass	247,829		225,225		96,698		59,044		18,644		15,977		—	—	663,417

Substandard	333		934		789		558		190		206		—	—	3,010

Loss	7		34		2		—		2		—		—	—	45
Total	248,169		226,193		97,489		59,602		18,836		16,183		—	—	666,472
Current period gross charge-offs	609		2,091		865		255		63		147				4,030
Consumer, direct
Pass	58,445		37,050		17,434		8,282		3,185		4,081		—	—	128,477

Substandard	55		79		47		28		30		27		—	—	266

Loss	—		—		—		—		—		26		—	—	26
Total	58,500		37,129		17,481		8,310		3,215		4,134		—	—	128,769
Current period gross charge-offs	36		154		77		100		14		35				416
Deposit account overdrafts	986		—		—		—		—		—		—	—	986
Current period gross charge-offs	1,161														1,161
Total loans, at amortized cost	1,352,734		1,206,325		1,025,875		536,750		430,610		1,336,994		269,908	11,007	6,159,196
Current period gross charge-offs	$	2,794	$	3,706	$	2,326	$	652	$	415	$	1,587			$	11,480

•Construction loans are typically secured by owner occupied commercial real estate or non-owner occupied investment real estate. Typically, owner occupied construction loans are secured by office buildings, warehouses, manufacturing facilities, and other commercial and industrial properties that are in process of construction. Non-owner occupied commercial construction loans are generally secured by multi-family complexes, warehouse buildings, industrial buildings, land under development, and other commercial real estate in process of construction.

•Commercial real estate loans can be secured by either owner occupied commercial real estate or non-owner occupied investment commercial real estate. Typically, owner occupied commercial real estate loans are secured by office buildings, warehouses, manufacturing facilities, and other commercial and industrial properties occupied by operating companies. Non-owner occupied commercial real estate loans are generally secured by multifamily complexes, retail facilities, office buildings and complexes, warehouses, industrial buildings, land under development, as well as other commercial real estate.

As part of Peoples' loss mitigation activities, Peoples may agree to modify the contractual terms of a loan to a borrower experiencing financial difficulty. The most common modifications to the contractual terms of a loan to a borrower experiencing financial difficulty include an extension of the maturity date, a reduction in the interest rate for the remaining life of the loan, a temporary period of interest-only payments, and a reduction in the contractual payment amount for either a short period or the remaining term of the loan.

In addition to loan modifications, Peoples also provides other loss mitigation options, such as forbearance and repayment plans, to assist borrowers who experience financial difficulties. In assessing whether or not a borrower is experiencing financial difficulty, Peoples considers information currently available regarding the financial condition of the borrower. This information includes, but is not limited to, whether (1) the borrower is currently in payment default on any of the borrower's debt; (2) a payment default is probable in the foreseeable future without the modification; (3) the borrower has declared or is in the process of declaring bankruptcy; and (4) the borrower's projected cash flow is insufficient to satisfy contractual payments due under the original terms of the loan without a modification.


	Payment Delay (Only)
(Dollars in thousands)	Payment Deferral		Term Extension		Total		Percentage of Total by Loan Category(a)(b)(c)

During the Three Months Ended September 30, 2024

Commercial real estate	$	—	$	561	$	561	0.03	%
Commercial and industrial	—		9,057		9,057		0.72	%
Leasing	14		637		651		0.15	%
Residential real estate	—		17		17		—	%

Consumer, indirect	14		1		15		—	%


Total	$	28	$	10,273	$	10,301	0.16	%


During the Three Months Ended September 30, 2023

Commercial real estate	—		901		901		0.04	%
Commercial and industrial	—		2,352		2,352		0.21	%

Residential real estate	—		25		25		—	%
Home equity lines of credit	—		52		52		0.03	%



Total	$	—	$	3,330	$	3,330	0.05	%
(a) Based on the amortized cost basis as of period end, divided by the period end amortized cost basis of the corresponding class of financing receivable. (b) The table presented above excludes loans that were paid off or otherwise no longer included in the loan portfolio as of period end.
(c) Each with --% not meaningful


	Payment Delay (Only)
(Dollars in thousands)	Forbearance Plan		Payment Deferral		Term Extension		Forbearance Plan and Term Extension		Total		Percentage of Total by Loan Category(a)(b)(c)

During the Nine Months Ended September 30, 2024

Commercial real estate	$	—	$	—	$	1,122	$	—	$	1,122	0.05	%
Commercial and industrial	—		—		19,148		—		19,148		1.53	%
Leasing	—		214		637		—		851		0.20	%
Residential real estate	—		—		90		—		90		0.01	%
Home equity lines of credit	—		—		64		—		64		0.03	%
Consumer, indirect	—		14		8		—		22		—	%


Total	$	—	$	228	$	21,069	$	—	$	21,297	0.34	%


During the Nine Months Ended September 30, 2023
Construction	$	—	$	1,598	$	—	$	—	$	1,598	0.43	%
Commercial real estate	189		—		1,089		—		1,278		0.06	%
Commercial and industrial	—		—		5,130		293		5,423		0.48	%

Residential real estate	—		—		243		—		243		0.03	%
Home equity lines of credit	—		—		203		—		203		0.10	%



Total	$	189	$	1,598	$	6,665	$	293	$	8,745	0.14	%
(a) Based on the amortized cost basis as of period end, divided by the period end amortized cost basis of the corresponding class of financing receivable. (b) The table presented above excludes loans that were paid off or otherwise no longer included in the loan portfolio as of period end.
(c) Each with --% not meaningful


	Weighted-Average Term Extension (in months)	Average Amount Capitalized as a Result of a Payment Delay(a)
During the Three Months Ended September 30, 2024

Commercial real estate	6	$	—
Commercial and industrial	7	—
Leasing	12	—
Residential real estate	1	—

Consumer, indirect	13	—


During the Three Months Ended September 30, 2023

Commercial real estate	4	—
Commercial and industrial	4	—

Residential real estate	240	—
Home equity lines of credit	217	—



(a) Represents the average amount of delinquency-related amounts that were capitalized as part of the loan balance. Amounts are in whole dollars.


	Weighted-Average Term Extension (in months)	Average Amount Capitalized as a Result of a Payment Delay(a)
During the Nine Months Ended September 30, 2024

Commercial real estate	6	$	—
Commercial and industrial	7	—
Leasing	12	—
Residential real estate	1	—
Home equity lines of credit	120	—
Consumer, indirect	3	—


During the Nine Months Ended September 30, 2023

Commercial real estate	6	—
Commercial and industrial	5	—

Residential real estate	213	8,072
Home equity lines of credit	189	—
Consumer, indirect	2	—


(a) Represents the average amount of delinquency-related amounts that were capitalized as part of the loan balance. Amounts are in whole dollars.


	Payment Delay as a Result of a Payment Deferral (Only)(a)
For the Three Months Ended September 30, 2024



Leasing	26





Total loans that subsequently defaulted	$	26

For the Nine Months Ended September 30, 2024

Commercial real estate	193
Commercial and industrial	28
Leasing	26
Residential real estate	73




Total loans that subsequently defaulted	$	320

For the Three Months Ended September 30, 2023(b)


Commercial and industrial	245






Total loans that subsequently defaulted	$	245

For the Nine Months Ended September 30, 2023(b)


Commercial and industrial	245



Consumer, indirect	11


Total loans that subsequently defaulted	$	256


(a) Represents the sum of amortized cost and gross charge-off as of period end. Excludes loans that liquidated either through foreclosure, deed-in-lieu of foreclosure, or a short sale. (b) Accounting standard was implemented as of January 1, 2023, thus information above reflects loan modifications made on or after that date.


As of September 30, 2024
(Dollars in thousands)	30-59 Days Delinquent		60-89 Days Delinquent		90+ Days Delinquent		Total Delinquent		Current		Total

Commercial real estate	—		—		193		193		2,311		2,504
Commercial and industrial	50		—		28		78		11,363		11,441
Leasing	—		—		26		26		174		200
Residential real estate	—		—		34		34		63		97
Home equity lines of credit	—		—		—		—		120		120
Consumer, indirect	—		—		—		—		7		7


Total loans modified(a)	$	50	$	—	$	281	$	331	$	14,038	$	14,369

(a) Represents the amortized cost basis as of period end.


As of September 30, 2023
(Dollars in thousands)	30-59 Days Delinquent		60-89 Days Delinquent		90+ Days Delinquent		Total Delinquent		Current		Total
Construction	$	—	$	—	$	—	$	—	$	1,598	$	1,598
Commercial real estate	—		76		—		76		1,203		1,279
Commercial and industrial	—		276		2,042		2,318		3,105		5,423

Residential real estate	—		—		—		—		242		242
Home equity lines of credit	—		—		—		—		203		203



Total loans modified(a)	$	—	$	352	$	2,042	$	2,394	$	6,351	$	8,745

(a) Represents the amortized cost basis as of period end.

As discussed in "Note 1 Summary of Significant Accounting Policies" of the Notes to the Consolidated Financial Statements included in Peoples' 2023 Form 10-K, Peoples estimates the allowance for credit losses using relevant available information, from both internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. In management's estimation of expected credit losses, Peoples uses a one-year reasonable and supportable period across all segments. Following the reasonable and supportable period, Peoples reverts the macroeconomic variables to their long run average over a four-quarter reversion period.


(Dollars in thousands)	Beginning Balance, June 30, 2024		Initial Allowance for Acquired PCD Assets		(Recovery of) Provision for Credit Losses (a)		Charge-offs		Recoveries		Ending Balance, September 30, 2024
Construction	$	673	$	—	$	181	$	—	$	—	$	854
Commercial real estate, other	19,852		—		(2,713)		—		100		17,239
Commercial and industrial	10,943		—		907		(259)		1		11,592
Premium finance	763		—		(19)		(37)		4		711
Leases	15,218		—		5,449		(3,753)		56		16,970
Residential real estate	5,939		—		61		—		58		6,058
Home equity lines of credit	1,737		—		69		(2)		—		1,804
Consumer, indirect	8,654		—		1,904		(1,820)		186		8,924
Consumer, direct	2,332		—		181		(162)		19		2,370
Deposit account overdrafts	136		—		456		(558)		83		117
Total	$	66,247	$	—	$	6,476	$	(6,591)	$	507	$	66,639


(Dollars in thousands)	Beginning Balance, June 30, 2023		Initial Allowance for Acquired PCD Assets		Provision for (Recovery of) Credit Losses (a)		Charge-offs		Recoveries		Ending Balance, September 30, 2023
Construction	$	1,496	$	—	$	(255)	$	—	$	—	$	1,241
Commercial real estate, other	19,731		138		1,569		(278)		97		21,257
Commercial and industrial	11,028		3		(630)		(199)		3		10,205
Premium finance	431		—		66		(33)		12		476
Leases	10,377		—		2,052		(905)		168		11,692
Residential real estate	6,112		6		156		(50)		27		6,251
Home equity lines of credit	1,676		5		(9)		(32)		—		1,640
Consumer, indirect	7,610		—		683		(926)		149		7,516
Consumer, direct	2,642		1		(43)		(92)		11		2,519
Deposit account overdrafts	108		—		289		(319)		49		127
Total	$	61,211	$	153	$	3,878	$	(2,834)	$	516	$	62,924


(Dollars in thousands)	Beginning Balance, December 31, 2023		Initial Allowance for Acquired PCD Assets		Provision for (Recovery of) Credit Losses (a)		Charge-offs		Recoveries		Ending Balance, September 30, 2024
Construction	$	699	$	—	$	155	$	—	$	—	$	854
Commercial real estate, other	20,915		—		(3,567)		(212)		103		17,239
Commercial and industrial	10,490		—		1,634		(550)		18		11,592
Premium finance	484		—		357		(146)		16		711
Leases	10,850		—		13,079		(7,400)		441		16,970
Residential real estate	5,937		—		56		(144)		209		6,058
Home equity lines of credit	1,588		—		220		(11)		7		1,804
Consumer, indirect	8,590		—		4,808		(4,848)		374		8,924
Consumer, direct	2,343		—		513		(529)		43		2,370
Deposit account overdrafts	115		—		1,010		(1,232)		224		117
Total	$	62,011	$	—	$	18,265	$	(15,072)	$	1,435	$	66,639



(Dollars in thousands)	Beginning Balance, December 31, 2022		Initial Allowance for Acquired PCD Assets		Provision for (Recovery of) Credit Losses (a)		Charge-offs		Recoveries		Ending Balance, September 30, 2023
Construction	$	1,250	$	—	$	—	$	(9)	$	—	$	1,241
Commercial real estate, other	17,710		418		3,307		(318)		140		21,257
Commercial and industrial	8,229		379		1,354		(211)		454		10,205
Premium finance	344		—		187		(79)		24		476
Leases	8,495		—		4,838		(1,978)		337		11,692
Residential real estate	6,357		260		(341)		(150)		125		6,251
Home equity lines of credit	1,693		18		35		(106)		—		1,640
Consumer, indirect	7,448		—		2,507		(2,796)		357		7,516
Consumer, direct	1,575		86		1,071		(274)		61		2,519
Deposit account overdrafts	61		—		701		(809)		174		127
Total	$	53,162	$	1,161	$	13,659	$	(6,730)	$	1,672	$	62,924

During the third quarter of 2024, Peoples recorded a total provision for credit losses of $6.5 million, which was a result of higher net charge-offs. Net charge-offs for the third quarter of 2024 were $6.1 million, primarily driven by an increase in charge-offs on leases originated by our North Star Leasing division, partially offset by recoveries of other commercial real estate loans.The increase in the allowance for credit losses at September 30, 2024 when compared to at June 30, 2024 and at December 31, 2023 was primarily due to an increase on reserves for individually analyzed loans and leases.

During the third quarter of 2023, Peoples recorded a provision for credit losses of $3.9 million, which was driven by (i) loan growth, (ii) an increase in net charge-offs, (iii) updates to our prepayment, curtailment, and funding rates, and (iv) a deterioration in macro-economic conditions used within the CECL mode, partially offset by the release of reserves on individually analyzed loans. The allowance for credit losses at September 30, 2023 also included an allowance for loans that were not considered purchased credit deteriorated acquired in the Limestone merger.

The provision for credit losses during the first nine months of 2024 was $18.3 million, compared to a provision for credit losses of $13.7 million for the first nine months of 2023. The provision for credit losses during the first nine months of 2024 was mainly a result of (i) higher net charge-offs, (ii) an increase in reserves on individually analyzed loans and leases, (iii) economic forecast deterioration and (iv) loan growth. The provision for credit losses during the first nine months of 2023 was driven by (i) the addition of the provision for the non-purchased credit deteriorated loans acquired in the Limestone Merger, (ii) loan growth and (iii) economic forecast deterioration, partially offset by a reduction in the reserves for individually analyzed loans and leases and the use of updated loss drivers.

Peoples had recorded an allowance for unfunded commitments of $2.0 million and $1.8 million as of September 30, 2024 and December 31, 2023, respectively. The allowance for unfunded commitments (also referred to as "unfunded commitment liability") is presented in the “Accrued expenses and other liabilities” line of the Unaudited Consolidated Balance Sheets. The change in the allowance for unfunded commitments is also reflected in the "Provision for (recovery of) credit losses" line of the Unaudited Consolidated Statements of Operations.