Loans and Leases, and Allowance for Credit Losses

12 Months Ended

Dec. 31, 2024

Loans and Leases, and Allowance for Credit Losses

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 NSL division and its Vantage subsidiary. Throughout this Form 10-K, loans and leases are referred to as “total loans” and “loans held for investment.”

The major classifications of loan balances (in each case, net of deferred fees and costs) excluding loans held for sale, were as follows at December 31:


(Dollars in thousands)	2024		2023
Construction	$	328,388	$	364,019
Commercial real estate, other	2,156,013		2,196,957
Commercial and industrial	1,347,645		1,184,986
Premium finance	269,435		203,177
Leases	406,598		414,060
Residential real estate	835,101		791,095
Home equity lines of credit	232,661		208,675
Consumer, indirect	669,857		666,472
Consumer, direct	111,052		128,769
Deposit account overdrafts	1,253		986
Total loans, at amortized cost	$	6,358,003	$	6,159,196

Net deferred loan origination costs were $20.2 million and $21.7 million at December 31, 2024 and 2023, respectively. The remaining unamortized net discount included in the amortized cost of loans and leases was $19.5 million and $43.0 million at December 31, 2024 and 2023, respectively.

Accrued interest receivable is not included within the loan balances, but is presented in the “Other assets” line of the Consolidated Balance Sheets, with no recorded allowance for credit losses. Total interest receivable on loans was $23.1 million at December 31, 2024 and $24.5 million at December 31, 2023.

Nonaccrual and Past Due Loans

A loan is considered past due if any required principal and interest payments have not been received as of the date such payments were required to be made under the terms of the loan agreement. A loan may be placed on nonaccrual status regardless of whether or not such loan is considered past due.

The amortized cost of loans on nonaccrual status and loans delinquent for 90 days or more and accruing were as follows at December 31:


	2024				2023
(Dollars in thousands)	Nonaccrual (a)		Accruing Loans 90+ Days Past Due		Nonaccrual (a)		Accruing Loans 90+ Days Past Due

Commercial real estate, other	$	7,136	$	227	$	2,816	$	78
Commercial and industrial	6,809		78		2,758		316
Premium finance	—		4,947		—		1,355
Leases	8,850		803		8,436		3,826
Residential real estate	7,329		2,166		7,921		877
Home equity lines of credit	1,498		213		1,022		171
Consumer, indirect	2,374		159		2,412		68
Consumer, direct	133		44		112		25
Total loans, at amortized cost	$	34,129	$	8,637	$	25,477	$	6,716

(a)There were $5.7 million of nonaccrual loans for which there was no allowance for credit losses at December 31, 2024 and $1.2 million of such loans at December 31, 2023.

The following tables present the aging of the recorded investment in past due loans at December 31:


	Loans Past Due								Current		Total
(Dollars in thousands)	30 – 59 days		60 – 89 days		90 + Days		Total
2024
Construction	$	—	$	—	$	—	$	—	$	328,388	$	328,388
Commercial real estate, other	1,300		1,585		6,008		8,893		2,147,120		2,156,013
Commercial and industrial	1,651		583		4,551		6,785		1,340,860		1,347,645
Premium finance	3,863		456		4,947		9,266		260,169		269,435
Leases	10,941		5,241		9,575		25,757		380,841		406,598
Residential real estate	11,481		3,038		5,271		19,790		815,311		835,101
Home equity lines of credit	1,473		317		1,093		2,883		229,778		232,661
Consumer, indirect	7,568		1,522		1,326		10,416		659,441		669,857
Consumer, direct	884		113		138		1,135		109,917		111,052
Deposit account overdrafts	—		—		—		—		1,253		1,253
Total loans, at amortized cost	$	39,161	$	12,855	$	32,909	$	84,925	$	6,273,078	$	6,358,003
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

Delinquency trends remained stable, with 98.7% and 98.6% of Peoples’ portfolio considered “current” at December 31, 2024 and at December 31, 2023, respectively.

Pledged Loans

Peoples has pledged certain loans secured by one-to-four family and multifamily residential mortgages, commercial real estate and home equity lines of credit under a blanket collateral agreement to secure borrowings from the FHLB. Peoples also has pledged commercial loans to secure borrowings with the FRB. Loans pledged at December 31 are summarized in the following table:


(Dollars in thousands)	2024		2023
Loans pledged to FHLB	$	1,218,496	$	1,206,134
Loans pledged to FRB	527,989		419,245

Related Party Loans

In the normal course of its business, Peoples Bank has granted loans to certain directors and officers of Peoples, including their affiliates, families and entities in which they are principal owners. At December 31, 2024, no related party loan was past due 90 or more days or on nonaccrual status. Activity in related party loans is presented in the table below. Other changes primarily consist of changes in related party status, and the addition and exit of directors during the year, as applicable.


(Dollars in thousands)
Balance, December 31, 2023	$	20,166

New loans and disbursements	3,527
Repayments	(21,159)


Balance, December 31, 2024	$	2,534

Quality Indicators

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

“Pass” (grades 1 through 4): Loans in this risk category are to borrowers of acceptable-to-strong credit quality and risk who have the apparent ability to satisfy their loan obligations. Loans in this risk category would possess sufficient mitigating factors, such as adequate collateral or strong guarantors possessing the capacity to repay the loans if required, for any weakness that may exist.

“Special Mention” (grade 5): Loans in this risk category are the equivalent of the regulatory “Other Assets Especially Mentioned” classification. 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 the secondary source of repayment. If left uncorrected, these potential weaknesses may result in noticeable deterioration of the repayment prospects for the loans or in Peoples’ credit position.

“Substandard” (grade 6): Loans in this risk category are inadequately protected by the borrower’s current financial condition and payment capability, or by 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 deficiencies are not corrected.

“Doubtful” (grade 7): Loans in this risk category 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 current 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 these loans as an estimated loss is deferred until their more exact status may be determined.

“Loss” (grade 8): Loans in this risk category are considered to be non-collectible and of such little value that their continuance as bankable assets is not warranted. This does not mean each such 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 in the period in which the loan becomes uncollectable. Consequently, Peoples typically does not maintain a recorded investment in loans within this risk 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. All other loans not evaluated individually, nor meeting the regulatory conditions to be categorized as described above, would be considered as being “not rated.”

The following tables summarize the risk category of Peoples’ loan portfolio based upon the then most recent analysis performed at December 31, 2024:



	Term Loans at Amortized Cost by Origination Year
(Dollars in thousands)	2024		2023		2022		2021		2020		Prior		Revolving Loans		Revolving Loans Converted to Term		Total Loans
Construction
Pass	$	69,862	$	162,605	$	47,133	$	30,592	1,845		$	13,540	$	—	$	—	$	325,577
Special mention	—		—		—		—		—		115		—		—		115
Substandard	—		1,161		1,535		—		—		—		—		—		2,696


Total	69,862		163,766		48,668		30,592		1,845		13,655		—		—		328,388
Current period gross charge-offs	—		—		—		—		—		—						—
Commercial real estate, other
Pass	130,971		219,105		366,256		337,905		201,367		751,415		41,122		—		2,048,141
Special mention	271		2,923		11,876		7,197		5,107		10,689		288		—		38,351
Substandard	145		1,073		2,460		18,851		9,234		37,136		612		—		69,511
Doubtful	—		—		—		—		—		10		—		—		10

Total	131,387		223,101		380,592		363,953		215,708		799,250		42,022		—		2,156,013
Current period gross charge-offs	—		—		376		—		—		55						431
Commercial and industrial
Pass	311,631		202,929		134,558		148,288		66,102		152,143		229,821		4,779		1,245,472
Special mention	779		9,019		10,886		4,449		12,049		13,537		19,465		—		70,184
Substandard	200		99		4,791		11,429		3,850		4,430		5,045		49		29,844
Doubtful	—		—		1,987		—		—		158		—		—		2,145

Total	312,610		212,047		152,222		164,166		82,001		170,268		254,331		4,828		1,347,645
Current period gross charge-offs	—		14		—		17		105		532						668
Premium finance
Pass	265,504		3,837		94		—		—		—		—		—		269,435
Total	265,504		3,837		94		—		—		—		—		—		269,435
Current period gross charge-offs	67		109		33		—		—		—						209
Leases
Pass	175,449		125,664		61,064		24,181		4,661		2,153		—		—		393,172
Special mention	791		1,529		1,140		365		5		—		—		—		3,830
Substandard	351		2,108		1,777		193		8		—		—		—		4,437
Doubtful	170		2,127		1,859		624		110		269		—		—		5,159

Total	176,761		131,428		65,840		25,363		4,784		2,422		—		—		406,598
Current period gross charge-offs	1,315		5,623		5,421		2,308		301		138						15,106
Residential real estate
Pass	77,130		66,712		85,045		128,359		52,090		414,574		—		—		823,910

Substandard	321		1,088		161		980		306		8,087		—		—		10,943

Loss	—		4		—		—		—		244		—		—		248
Total	77,451		67,804		85,206		129,339		52,396		422,905		—		—		835,101
Current period gross charge-offs	—		—		46		5		—		237						288
Home equity lines of credit
Pass	54,724		37,417		37,752		27,430		16,583		57,303		24		731		231,233

Substandard	—		138		163		16		34		1,069		—		—		1,420

Loss	—		—		—		—		—		8		—		—		8
Total	54,724		37,555		37,915		27,446		16,617		58,380		24		731		232,661
Current period gross charge-offs	—		—		—		—		—		11						11
Consumer, indirect
Pass	239,584		176,115		148,210		56,846		30,231		16,129		—		—		667,115

Substandard	269		557		681		618		312		251		—		—		2,688

Loss	14		—		16		14		—		10		—		—		54
Total	239,867		176,672		148,907		57,478		30,543		16,390		—		—		669,857
Current period gross charge-offs	497		2,207		1,880		691		141		763						6,179
Consumer, direct
Pass	45,978		25,605		21,544		9,614		4,180		3,884		—		—		110,805

Substandard	18		65		46		29		4		73		—		—		235

Loss	—		4		—		—		—		8		—		—		12
Total	45,996		25,674		21,590		9,643		4,184		3,965		—		—		111,052
Current period gross charge-offs	2		154		212		51		12		247						678
Deposit account overdrafts	1,253		—		—		—		—		—		—		—		1,253
Current period gross charge-offs	1,542		—		—		—		—		—						1,542
Total loans, at amortized cost	$	1,375,415	$	1,041,884	$	941,034	$	807,980	$	408,078	$	1,487,235	$	296,377	$	5,559	$	6,358,003
Total current period gross charge-offs	$	3,423	$	8,107	$	7,968	$	3,072	$	559	$	1,983					$	25,112

The following tables summarize the risk category of Peoples’ loan portfolio based upon the then most recent analysis performed at December 31, 2023:



	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
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
Total current period gross charge-offs	$	2,794	$	3,706	$	2,326	$	652	$	415	$	1,587					$	11,480

Collateral Dependent Loans

Peoples has certain loans for which repayment is dependent upon the operation or sale of collateral, as the borrower is experiencing financial difficulty. The underlying collateral can vary based upon the type of loan. The following provides more detail about the types of collateral that secure collateral dependent loans:

•Construction loans are typically secured by owner occupied commercial real estate or non-owner occupied 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 office buildings and complexes, multi-family complexes, land under development, and other commercial and industrial 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 office buildings and complexes, retail facilities, multifamily complexes, land under development, industrial properties, as well as other commercial or industrial real estate.

•Commercial and industrial loans are generally secured by equipment, inventory, accounts receivable, and other commercial property.

•Residential real estate loans are typically secured by first mortgages, and in some cases could be secured by a second mortgage, on residential real estate property.

•Home equity lines of credit are generally secured by second mortgages on residential real estate property.

•Consumer loans are generally secured by automobiles, motorcycles, recreational vehicles and other personal property. Some consumer loans are unsecured and have no underlying collateral.

•Leases are secured by commercial equipment and other essential business assets.

•Premium finance loans are secured by the unearned portion of the insurance premium being financed.

The following table details Peoples’ amortized cost of collateral dependent loans as of December 31:


(Dollars in thousands)	2024		2023


Commercial real estate, other	$	2,764		$	—
Commercial and industrial	959			—
Residential real estate	—			501

Leases	652			—


Total collateral dependent loans	$	4,375		$	501

The increase in collateral dependent loans at December 31, 2024 compared to at December 31, 2023, was primarily due to four relationships that became collateral dependent in 2024.

Modifications for Borrowers Experiencing Financial Difficulty

As part of Peoples’ loss mitigation activities, Peoples may agree to modify the contractual terms of a loan to a borrower experiencing financial difficulty. The most common modifications to the contractual terms of a loan to a borrower experiencing financial difficulty include an extension of the maturity date, 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.

The following table displays the amortized cost of loans that were restructured during the twelve months ended as of December 31, 2024 and December 31, 2023, presented by loan classification.


During the Twelve Months Ended December 31, 2024(a)
	Payment Delay (Only)
(Dollars in thousands)	Forbearance Plan		Payment Deferral		Term Extension		Forbearance Plan and Term Extension		Payment Delay and Term Extension		Total		Percentage of Total by Loan Category(b) (c)

Commercial real estate	—		—		1,021		—		—		1,021		0.05	%
Commercial and industrial	—		—		8,089		—		—		8,089		0.60	%
Leasing	—		189		652		—		1,247		2,088		0.51	%
Residential real estate	—		—		88		—		—		88		0.01	%
Home equity lines of credit	—		—		162		—		—		162		0.07	%
Consumer, indirect	—		13		—		—		—		13		—	%


Total	$	—	$	202	$	10,012	$	—	$	1,247	$	11,461	0.18	%

During the Twelve Months Ended December 31, 2023(a)
	Payment Delay (Only)
(Dollars in thousands)	Forbearance Plan		Payment Deferral		Term Extension		Forbearance Plan and Term Extension		Payment Delay and Term Extension		Total		Percentage of Total by Loan Category(b) (c)
Construction	$	—	$	1,590	$	52	$	—	$	—	$	1,642	0.45	%
Commercial real estate	184		—		2,160		—		—		2,344		0.11	%
Commercial and industrial	—		—		4,110		981		—		5,091		0.43	%

Residential real estate	—		—		91		—		—		91		0.01	%
Home equity lines of credit	—		—		209		—		—		209		0.10	%



Total	$	184	$	1,590	$	6,622	$	981	$	—	$	9,377	0.15	%

(a) The table presented excludes loans that were paid off or otherwise no longer included in the loan portfolio as of period end.

(b) 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.

The following table summarizes the financial impacts of loan modifications and payment deferrals made to loans during the twelve months ended as of December 31, 2024 and December 31, 2023, presented by loan classification.


During the Twelve Months Ended December 31, 2024
(Dollars in thousands)	Weighted-Average Term Extension (in months)	Average Amount Capitalized as a Result of a Payment Delay(a)

Commercial real estate	6	—
Commercial and industrial	7	—
Leasing	26	—
Residential real estate	1	—
Home equity lines of credit	89	—
Consumer, indirect	13	—


During the Twelve Months Ended December 31, 2023
(Dollars in thousands)	Weighted-Average Term Extension (in months)	Average Amount Capitalized as a Result of a Payment Delay(a)
Construction	5	$	—
Commercial real estate	7	—
Commercial and industrial	5	—

Residential real estate	213	8,076
Home equity lines of credit	187	—
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.

The following table displays the amortized cost of loans that received a completed modification or payment deferral within the previous 12 months and that defaulted in the periods presented. For purposes of this disclosure, Peoples defines loans that had a payment default as loans that were 90 days or more past due following a modification through December 31, 2024 and December 31, 2023, respectively.


For the Twelve Months Ended December 31, 2024
(Dollars in thousands)	Term Extension		Payment Deferral		Payment Delay and Term Extension		Total



Leasing	—		—		26		26
Residential real estate	72		—		—		72

Consumer, indirect	—		13		—		13


Total loans that subsequently defaulted(a)	$	72	$	13	$	26	$	111


During the Twelve Months Ended December 31, 2023
(Dollars in thousands)	Term Extension		Payment Deferral		Payment Delay and Term Extension		Total


Commercial and industrial	$	148	$	—	$	—	$	148



Consumer, indirect	11		—		—		11


Total loans that subsequently defaulted(a)	$	159	$	—	$	—	$	159

(a) Represents the sum of amortized cost and gross charge-off as of period end. Excludes loans that liquidated either through foreclosure, deed-in-lieu of foreclosure, or a short sale.

The following table displays an aging analysis of loans that were modified during the 12 months prior to the period displayed, presented by classification and class of financing receivable.


As of December 31, 2024(a)
(Dollars in thousands)	30-59 Days Delinquent		60-89 Days Delinquent		90+ Days Delinquent		Total Delinquent		Current		Total

Commercial real estate	—		—		—		—		1,021		1,021
Commercial and industrial	125		18		—		143		7,946		8,089
Leasing	143		652		26		821		1,267		2,088
Residential real estate	39		—		33		72		16		88
Home equity lines of credit	—		—		—		—		162		162
Consumer, indirect	—		—		13		13		—		13


Total loans modified(b)	$	307	$	670	$	72	$	1,049	$	10,412	$	11,461

As of December 31, 2023(a)
(Dollars in thousands)	30-59 Days Delinquent		60-89 Days Delinquent		90+ Days Delinquent		Total Delinquent		Current		Total
Construction	$	—	$	52	$	—	$	52	$	1,590	$	1,642
Commercial real estate	—		—		—		—		2,344		2,344
Commercial and industrial	—		750		148		898		4,193		5,091

Residential real estate	—		—		—		—		91		91
Home equity lines of credit	—		—		—		—		209		209



Total loans modified(b)	$	—	$	802	$	148	$	950	$	8,427	$	9,377
(a) Amounts in table excludes loans that were paid off or otherwise no longer included in the loan portfolio as of period end. (b) Represents the amortized cost basis as of period end.

Allowance for Credit Losses

As discussed in “Note 1 Summary of Significant Accounting Policies” of the Notes to the Consolidated Financial Statements included in this 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. The allowance for credit losses represents management’s estimate of lifetime expected credit losses.

Changes in the allowance for credit losses for 2024 are summarized below:



(Dollars in thousands)	Beginning Balance, January 1, 2024		Initial Allowance for Acquired PCD Assets (a)		Provision for (Recovery of) Credit Losses (b)		Charge-offs		Recoveries		Ending Balance, December 31, 2024
Construction	$	699	$	—	$	179	$	—	$	—	$	878
Commercial real estate, other	20,915		—		(4,355)		(431)		127		16,256
Commercial and industrial	10,490		—		3,403		(668)		58		13,283
Premium finance	484		—		359		(209)		28		662
Leases	10,850		—		16,621		(15,106)		528		12,893
Residential real estate	5,937		—		588		(288)		254		6,491
Home equity lines of credit	1,588		—		208		(11)		7		1,792
Consumer, indirect	8,590		—		5,613		(6,179)		552		8,576
Consumer, direct	2,343		—		681		(678)		50		2,396
Deposit account overdrafts	115		—		1,263		(1,542)		285		121
Total	$	62,011	$	—	$	24,560	$	(25,112)	$	1,889	$	63,348

(a) Includes purchase price adjustments related to acquisitions previously completed but were within the 12-month measurement period.

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

Changes in the allowance for credit losses for 2023 are summarized below:



(Dollars in thousands)	Beginning Balance, January 1, 2023		Initial Allowance for Acquired PCD Assets (a)		Provision for (Recovery of) Credit Losses (b)		Charge-offs		Recoveries		Ending Balance, December 31, 2023
Construction	$	1,250	$	—	$	(542)	$	(9)	$	—	699
Commercial real estate, other	17,710		1,340		1,514		(614)		965		20,915
Commercial and industrial	8,229		379		2,181		(851)		552		10,490
Premium finance	344		—		238		(122)		24		484
Leases	8,495		—		5,990		(3,997)		362		10,850
Residential real estate	6,357		228		(670)		(170)		192		5,937
Home equity lines of credit	1,693		18		(14)		(110)		1		1,588
Consumer, indirect	7,448		—		4,685		(4,030)		487		8,590
Consumer, direct	1,575		86		1,025		(416)		73		2,343
Deposit account overdrafts	61		—		938		(1,161)		277		115
Total	$	53,162	$	2,051	$	15,345	$	(11,480)	$	2,933	$	62,011

(a) Includes purchase price adjustments related to acquisitions previously completed but were within the 12-month measurement period.

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

During 2024, Peoples recorded a total provision for credit losses of $24.6 million, which was a result of higher net charge-offs. The increase in net charge-offs was primarily driven by leases originated by NSL and totaled $14.6 million for the full year, of which $11.4 million occurred in the second half of 2024. The increase in the allowance for credit losses at December 31, 2024 when compared to at December 31, 2023 was primarily due to an increase in reserves for individually analyzed loans and leases.

At December 31, 2024, Peoples had recorded an unfunded commitment liability of $2.0 million, an increase compared to the $1.8 million that was recorded at December 31, 2023. The allowance for unfunded commitments (also referred to as “unfunded commitment liability”) is presented in the “Accrued expenses and other liabilities” line of the Consolidated Balance Sheets. For 2024, Peoples recorded a provision for credit losses on unfunded commitments of $0.2 million, compared to a recovery for credit losses on unfunded commitments of $0.2 million for 2023. The change in the allowance for unfunded commitments is reflected in the “Provision for credit losses” line of the Consolidated Statements of Income.