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Loans and Leases
 9 Months Ended
Sep. 30, 2025
Receivables [Abstract]  
Loans and Leases Loans and Leases
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.
The major classifications of loan balances (in each case, net of deferred fees and costs) excluding loans held for sale, were as follows:
(Dollars in thousands)September 30,
2025		December 31, 2024
Construction$261,048 $328,388 
Commercial real estate, other2,369,396 2,156,013 
Commercial and industrial1,489,505 1,347,645 
Premium finance273,297 269,435 
Leases382,753 406,598 
Residential real estate875,773 835,101 
Home equity lines of credit247,383 232,661 
Consumer, indirect710,385 669,857 
Consumer, direct118,206 111,052 
Deposit account overdrafts982 1,253 
Total loans, at amortized cost$6,728,728 $6,358,003 
The table above includes net deferred loan origination costs of $20.1 million and $20.2 million at September 30, 2025 and at December 31, 2024, respectively. The remaining unamortized net discount included in the amortized cost of loans and leases was $11.4 million and $19.5 million at September 30, 2025 and at December 31, 2024, respectively.
Accrued interest receivable is not included within the loan balances, but is presented in the “Other assets” line of the Unaudited Consolidated Balance Sheets, with no recorded allowance for credit losses. Total interest receivable on loans was $23.9 million at September 30, 2025 and $23.1 million at December 31, 2024.
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 of loans delinquent for 90 days or more and accruing was as follows:
September 30, 2025December 31, 2024
(Dollars in thousands)
Nonaccrual (a)
Accruing Loans 90+ Days Past Due
Nonaccrual (a)
Accruing Loans 90+ Days Past Due
Commercial real estate, other$3,861 $— $7,136 $227 
Commercial and industrial6,258 163 6,809 78 
Premium finance— 2,492 — 4,947 
Leases11,338 496 8,850 803 
Residential real estate8,249 1,432 7,329 2,166 
Home equity lines of credit1,336 28 1,498 213 
Consumer, indirect2,563 160 2,374 159 
Consumer, direct284 127 133 44 
Total loans, at amortized cost$33,889 $4,898 $34,129 $8,637 
(a) There were $1.9 million and $5.7 million of nonaccrual loans for which there was no allowance for credit losses at September 30, 2025 and at December 31, 2024, respectively.
During the first nine months of 2025, nonaccrual loans decreased slightly compared to at December 31, 2024, which was primarily due to decreases in other commercial real estate and commercial and industrial loans, partially offset by an uptick in nonaccrual leases and residential real estate loans. The decrease in accruing loans 90+ days past due at September 30, 2025, when compared to at December 31, 2024, was primarily due to reductions in accruing 90+ days past due premium finance loans and residential real estate loans of $2.5 million and $0.7 million, respectively. The delinquent premium finance loans carry low credit risk, due to the ability to cancel premiums and recover the most, if not all of the receivable from the insurer.
The following table presents the aging of the amortized cost of past due loans:
Loans Past Due
Current
Loans
Total
Loans
(Dollars in thousands)30 - 59 days60 - 89 days90 + DaysTotal
September 30, 2025
Construction$— $— $— $— $261,048 $261,048 
Commercial real estate, other5,423 2,457 2,904 10,784 2,358,612 2,369,396 
Commercial and industrial1,909 495 5,086 7,490 1,482,015 1,489,505 
Premium finance1,880 996 2,492 5,368 267,929 273,297 
Leases2,907 6,733 11,549 21,189 361,564 382,753 
Residential real estate2,616 3,782 4,806 11,204 864,569 875,773 
Home equity lines of credit1,924 473 604 3,001 244,382 247,383 
Consumer, indirect6,429 1,162 1,331 8,922 701,463 710,385 
Consumer, direct534 211 305 1,050 117,156 118,206 
Deposit account overdrafts— — — — 982 982 
Total loans, at amortized cost$23,622 $16,309 $29,077 $69,008 $6,659,720 $6,728,728 
December 31, 2024
Construction$— $— $— $— $328,388 $328,388 
Commercial real estate, other1,300 1,585 6,008 8,893 2,147,120 2,156,013 
Commercial and industrial1,651 583 4,551 6,785 1,340,860 1,347,645 
Premium finance3,863 456 4,947 9,266 260,169 269,435 
Leases10,941 5,241 9,575 25,757 380,841 406,598 
Residential real estate11,481 3,038 5,271 19,790 815,311 835,101 
Home equity lines of credit1,473 317 1,093 2,883 229,778 232,661 
Consumer, indirect7,568 1,522 1,326 10,416 659,441 669,857 
Consumer, direct884 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 
Delinquency trends improved slightly, as 99.0% of Peoples' loan portfolio was considered “current” at September 30, 2025, compared to 98.7% at December 31, 2024.
Pledged Loans
Peoples has pledged certain loans secured by one-to-four family and multifamily residential mortgages, home equity lines of credit and commercial real estate loans under a blanket collateral agreement to secure borrowings from the FHLB. Peoples also has pledged eligible commercial and industrial loans to secure borrowings with the FRB. Loans pledged are summarized as follows:
(Dollars in thousands)September 30, 2025December 31, 2024
Loans pledged to FHLB$1,262,210 $1,218,496 
Loans pledged to FRB479,267 527,989 
Credit Quality Indicators
As discussed in "Note 1 Summary of Significant Accounting Policies" of the Notes to the Consolidated Financial Statements included in Peoples' 2024 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:
“Pass” (grades 1 through 4): Loans in this risk category involve 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 loan if required, for any weakness that may exist.
“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", "doubtful", 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."
The following table summarizes the risk category of loans within Peoples' loan portfolio, including acquired loans, based upon the most recent analysis performed at September 30, 2025:
Term Loans at Amortized Cost by Origination YearRevolving Loans Converted to Term
(Dollars in thousands)20252024202320222021PriorRevolving Loans
Total
Loans
Construction

  Pass$49,861 $79,937 $116,066 $991 $6,533 $5,040 $— $512 $258,428 
  Substandard— — 1,125 1,495 — — — — 2,620 
     Total49,861 79,937 117,191 2,486 6,533 5,040 — 512 261,048 
Current period gross charge-offs (a)— — — — — — — 
Commercial real estate, other

  Pass250,913 186,063 350,878 385,044 341,179 692,324 38,645 1,844 2,245,046 
  Special mention85 8,596 2,606 611 4,852 27,224 133 — 44,107 
  Substandard— 680 1,362 15,809 27,614 34,214 554 2,423 80,233 
  Doubtful— — — — — 10 — — 10 
     Total250,998 195,339 354,846 401,464 373,645 753,772 39,332 4,267 2,369,396 
Current period gross charge-offs (a)— — — 156 — 121 277 
Commercial and industrial
  Pass266,963 253,929 181,349 103,836 110,948 225,164 236,280 5,636 1,378,469 
Term Loans at Amortized Cost by Origination YearRevolving Loans Converted to Term
(Dollars in thousands)20252024202320222021PriorRevolving Loans
Total
Loans
  Special mention901 90 2,986 1,301 3,014 11,794 41,832 15 61,918 
  Substandard137 4,419 3,452 11,372 13,226 4,292 11,329 5,268 48,227 
  Doubtful— — — 850 — 41 — — 891 
     Total268,001 258,438 187,787 117,359 127,188 241,291 289,441 10,919 1,489,505 
Current period gross charge-offs (a)50 19 161 540 159 479 1,408 
Premium Finance
Pass258,474 14,348 475 — — — — — 273,297 
Total258,474 14,348 475 — — — — — 273,297 
Current period gross charge-offs (a)7 126 106 30 — — 269 
Leases
Pass128,431 105,310 83,397 34,169 12,608 3,803 — — 367,718 
Special mention26 754 2,272 658 37 1 — — 3,748 
Substandard293 2,048 2,453 888 373 30 — — 6,085 
Doubtful— 1,363 1,959 1,588 292 — — — 5,202 
Total128,750 109,475 90,081 37,303 13,310 3,834 — — 382,753 
Current period gross charge-offs (a)73 2,234 6,319 5,364 1,220 473 15,683 
Residential real estate
Pass86,319 69,638 58,908 79,796 120,795 449,404 — — 864,860 
Substandard— 550 1,312 211 1,054 7,728 — — 10,855 
Loss— — — 4 10 44 — — 58 
     Total86,319 70,188 60,220 80,011 121,859 457,176 — — 875,773 
Current period gross charge-offs (a)— — 27 8 39 139 213 
Home equity lines of credit
Pass39,014 53,024 34,066 35,733 24,843 59,804 22 3,362 246,506 
Substandard— — 50 257 16 554 — — 877 
     Total39,014 53,024 34,116 35,990 24,859 60,358 22 3,362 247,383 
Current period gross charge-offs (a)— — 36 — — 3 39 
Consumer, indirect
Pass244,216 183,330 124,490 98,441 32,788 24,003 — — 707,268 
Substandard371 529 702 674 390 350 — — 3,016 
Loss15 34 16 22 11 3 — — 101 
     Total244,602 183,893 125,208 99,137 33,189 24,356 — — 710,385 
Current period gross charge-offs (a)582 1,658 1,600 915 278 133 5,166 
Consumer, direct
Pass49,443 26,983 17,273 13,754 5,756 4,617 — — 117,826 
Term Loans at Amortized Cost by Origination YearRevolving Loans Converted to Term
(Dollars in thousands)20252024202320222021PriorRevolving Loans
Total
Loans
Substandard— 38 196 65 30 36 — — 365 
Loss— — 14 — 1 — — — 15 
     Total49,443 27,021 17,483 13,819 5,787 4,653 — — 118,206 
Current period gross charge-offs (a)239 119 83 72 18 10 541 
Deposit account overdrafts982 — — — — — — — 982 
Current period gross charge-offs (a)834 — — — — — 834 
Total loans, at amortized cost1,376,444 991,663 987,407 787,569 706,370 1,550,480 328,795 19,060 6,728,728 
Total current period gross charge-offs (a)$1,785 $4,156 $8,332 $7,085 $1,714 $1,358 $24,430 
(a) Current period gross charge-offs are for the nine months ended as of September 30, 2025.
The following table summarizes the risk category of loans within Peoples' loan portfolio, including acquired loans, based upon the then most recent analysis performed at December 31, 2024:
Term Loans at Amortized Cost by Origination Year
(Dollars in thousands)20242023202220212020PriorRevolving LoansRevolving 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 
     Total69,862 163,766 48,668 30,592 1,845 13,655 — — 328,388 
Current period gross charge-offs (a)— — — — — — — 
Commercial real estate, other

  Pass130,971 219,105 366,256 337,905 201,367 751,415 41,122 — 2,048,141 
  Special mention271 2,923 11,876 7,197 5,107 10,689 288 — 38,351 
  Substandard145 1,073 2,460 18,851 9,234 37,136 612 — 69,511 
  Doubtful— — — — — 10 — — 10 
     Total131,387 223,101 380,592 363,953 215,708 799,250 42,022 — 2,156,013 
Current period gross charge-offs (a)— — 376 — — 55 431 
Commercial and industrial
  Pass311,631 202,929 134,558 148,288 66,102 152,143 229,821 4,779 1,245,472 
  Special mention779 9,019 10,886 4,449 12,049 13,537 19,465 — 70,184 
  Substandard200 99 4,791 11,429 3,850 4,430 5,045 49 29,844 
  Doubtful— — 1,987 — — 158 — — 2,145 
     Total312,610 212,047 152,222 164,166 82,001 170,268 254,331 4,828 1,347,645 
Current period gross charge-offs (a)— 14 — 17 105 532 668 
Premium finance
  Pass265,504 3,837 94 — — — — — 269,435 
Total265,504 3,837 94 — — — — — 269,435 
Term Loans at Amortized Cost by Origination Year
(Dollars in thousands)20242023202220212020PriorRevolving LoansRevolving Loans Converted to Term
Total
Loans
Current period gross charge-offs (a)67 109 33 — — — 209 
Leases
Pass175,449 125,664 61,064 24,181 4,661 2,153 — — 393,172 
Special mention791 1,529 1,140 365 5 — — — 3,830 
Substandard351 2,108 1,777 193 8 — — — 4,437 
Doubtful170 2,127 1,859 624 110 269 — — 5,159 
Total176,761 131,428 65,840 25,363 4,784 2,422 — — 406,598 
Current period gross charge-offs (a)1,315 5,623 5,421 2,308 301 138 15,106 
Residential real estate
  Pass77,130 66,712 85,045 128,359 52,090 414,574 — — 823,910 
  Substandard321 1,088 161 980 306 8,087 — — 10,943 
   Loss— 4 — — — 244 — — 248 
     Total77,451 67,804 85,206 129,339 52,396 422,905 — — 835,101 
Current period gross charge-offs (a)— — 46 5 — 237 288 
Home equity lines of credit
  Pass54,724 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 
     Total54,724 37,555 37,915 27,446 16,617 58,380 24 731 232,661 
Current period gross charge-offs (a)— — — — — 11 11 
Consumer, indirect
  Pass239,584 176,115 148,210 56,846 30,231 16,129 — — 667,115 
  Substandard269 557 681 618 312 251 — — 2,688 
   Loss14 — 16 14 — 10 — — 54 
     Total239,867 176,672 148,907 57,478 30,543 16,390 — — 669,857 
Current period gross charge-offs (a)497 2,207 1,880 691 141 763 6,179 
Consumer, direct
  Pass45,978 25,605 21,544 9,614 4,180 3,884 — — 110,805 
  Substandard18 65 46 29 4 73 — — 235 
   Loss— 4 — — — 8 — — 12 
     Total45,996 25,674 21,590 9,643 4,184 3,965 — — 111,052 
Current period gross charge-offs (a)2 154 212 51 12 247 678 
Deposit account overdrafts1,253 — — — — — — — 1,253 
Current period gross charge-offs (a)1,542 — — — — — 1,542 
Total loans, at amortized cost1,375,415 1,041,884 941,034 807,980 408,078 1,487,235 296,377 5,559 6,358,003 
Current period gross charge-offs (a)$3,423 $8,107 $7,968 $3,072 $559 $1,983 $25,112 
(a) Current period gross charge-offs are for the year ended as of December 31, 2024.
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 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.
•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 most often 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:
(Dollars in thousands)September 30, 2025December 31, 2024
Commercial real estate, other$687 $2,764 
Leases2,333 652 
Commercial and industrial2,212 959 
Total collateral dependent loans$5,232 $4,375 
Collateral dependent loans increased at September 30, 2025, compared to December 31, 2024, and were driven by the inclusion of three large NSL relationships and two large commercial and industrial relationships, both totaling approximately $1.9 million each.
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 allowance for credit losses for loans modified for borrowers experiencing financial difficulty is determined based on the allowance for credit losses policy as described in "Note 1 Summary of Significant Accounting Policies" of the Notes to the Consolidated Financial Statements included in Peoples' 2024 Form 10-K.
The following tables display the amortized cost of loans that were restructured during the three and nine months ended September 30, 2025 and September 30, 2024, presented by loan classification.
(Dollars in thousands)Payment DeferralTerm ExtensionTotal
Percentage of Total by Loan Category(a)(b)(c)
During the Three Months Ended September 30, 2025
Commercial real estate$— $1,037 $1,037 0.04 %
Commercial and industrial— 2,704 2,704 0.18 %
Leases— 29 29 0.01 %
Home equity lines of credit— 47 47 0.02 %
Total$— $3,817 $3,817 0.06 %
During the Three Months Ended September 30, 2024
Commercial real estate$— $561 $561 0.03 %
Commercial and industrial— 9,057 9,057 0.72 %
Leases14 637 651 0.15 %
Residential real estate— 17 17 — %
Consumer, indirect14 1 15 — %
Total$28 $10,273 $10,301 0.16 %
(a) Based on the amortized cost basis as of period end, divided by the period end amortized cost basis of the corresponding class of financing receivable.
(b) The table presented above excludes loans that were paid off or otherwise no longer included in the loan portfolio as of period end.
(c) Each with --% is considered not meaningful.
(Dollars in thousands)Payment DeferralTerm ExtensionPrincipal ForgivenessTotal
Percentage of Total by Loan Category(a)(b)(c)
During the Nine Months Ended September 30, 2025
Commercial real estate$— $3,084 $— $3,084 0.13 %
Commercial and industrial— 10,880 — 10,880 0.73 %
Leases6 29 39 74 0.02 %
Residential real estate— 188 — 188 0.02 %
Home equity lines of credit— 47 — 47 0.02 %
Total$6 $14,228 $39 $14,273 0.21 %
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 %
Leases214 637 — 851 0.20 %
Residential real estate— 90 — 90 0.01 %
Home equity lines of credit— 64 — 64 0.03 %
Consumer, indirect14 8 — 22 — %
Total$228 $21,069 $— $21,297 0.34 %
(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 --% is considered not meaningful.
The following tables summarize the impacts of loan modifications and payment deferrals made to loans during the three and nine months ended September 30, 2025 and September 30, 2024, presented by loan classification.
Weighted-Average Term Extension
(in months)
During the Three Months Ended September 30, 2025
Commercial real estate6
Commercial and industrial3
Leases12
Home equity lines of credit240
During the Three Months Ended September 30, 2024
Commercial real estate6
Commercial and industrial7
Leases12
Residential real estate1
Consumer, indirect13
Weighted-Average Term Extension
(in months)
During the Nine Months Ended September 30, 2025
Commercial real estate4
Commercial and industrial6
Leases8
Residential real estate174
Home equity lines of credit240
During the Nine Months Ended September 30, 2024
Commercial real estate6
Commercial and industrial7
Leases12
Residential real estate1
Home equity lines of credit120
Consumer, indirect3
The following tables display the amortized cost of loans that received a completed modification or payment deferral within the previous 12 months and that had a payment default 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.
Term Extension(a)
For the Three Months Ended September 30, 2025
Commercial and industrial405 
Total loans that subsequently defaulted$405 
For the Three Months Ended September 30, 2024
Leases$26 
Total loans that subsequently defaulted$26 
For the Nine Months Ended September 30, 2025
Commercial and industrial423 
Total loans that subsequently defaulted$423 
For the Nine Months Ended September 30, 2024
Commercial real estate$193 
Commercial and industrial28 
Leases26 
Residential real estate73 
Total loans that subsequently defaulted$320 
(a) Represents the sum of amortized cost and gross charge-off as of period end. Excludes loans that liquidated either through foreclosure, deed-in-lieu of foreclosure, or a short sale.
The following table displays an aging analysis of loans that were modified during the 12 months prior to September 30, 2025 and September 30, 2024, respectively, presented by classification and class of financing receivable.
As of September 30, 2025
(Dollars in thousands)30-59 Days Delinquent60-89 Days Delinquent90+ Days DelinquentTotal DelinquentCurrentTotal
Commercial real estate$— $— $— $— $3,084 $3,084 
Commercial and industrial— — 423 423 10,625 11,048 
Leases25 — — 25 49 74 
Residential real estate— — — — 188 188 
Home equity lines of credit47 — — 47 92 139 
Total loans modified(a)
$72 $— $423 $495 $14,038 $14,533 
(a) Represents the amortized cost basis as of period end.
As of September 30, 2024
(Dollars in thousands)30-59 Days Delinquent60-89 Days Delinquent90+ Days DelinquentTotal DelinquentCurrentTotal
Commercial real estate$— $— $193 $193 $2,311 $2,504 
Commercial and industrial50 — 28 78 11,363 11,441 
Leases— — 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.

Allowance for Credit Losses
As discussed in "Note 1 Summary of Significant Accounting Policies" of the Notes to the Consolidated Financial Statements included in Peoples' 2024 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.
Changes in the allowance for credit losses for the three and nine months ended September 30, 2025 and September 30, 2024 are summarized below:
(Dollars in thousands)
Beginning Balance, June 30, 2025
Provision for (Recovery of) Credit Losses (a)Charge-offsRecoveries
Ending Balance, September 30, 2025
Construction$1,347 $(95)$— $— $1,252 
Commercial real estate, other17,144 1,198 (27)1 18,316 
Commercial and industrial17,854 488 (472)26 17,896 
Premium finance794 84 (105)3 776 
Leases19,633 2,894 (4,930)443 18,040 
Residential real estate6,113 266 (71)40 6,348 
Home equity lines of credit1,814 93 (27)— 1,880 
Consumer, indirect7,643 1,408 (1,607)418 7,862 
Consumer, direct2,248 400 (290)27 2,385 
Deposit account overdrafts91 276 (312)54 109 
Total$74,681 $7,012 $(7,841)$1,012 $74,864 
(a)Amount does not include the provision for the allowance for credit losses on unfunded commitments.
(Dollars in thousands)Beginning Balance, June 30, 2024Provision for (Recovery of) Credit Losses (a)Charge-offsRecoveries
Ending Balance, September 30, 2024
Construction$673 $181 $— $— $854 
Commercial real estate, other19,852 (2,713)— 100 17,239 
Commercial and industrial10,943 907 (259)1 11,592 
Premium finance763 (19)(37)4 711 
Leases15,218 5,449 (3,753)56 16,970 
Residential real estate5,939 61 — 58 6,058 
Home equity lines of credit1,737 69 (2)— 1,804 
Consumer, indirect8,654 1,904 (1,820)186 8,924 
Consumer, direct2,332 181 (162)19 2,370 
Deposit account overdrafts136 456 (558)83 117 
Total$66,247 $6,476 $(6,591)$507 $66,639 
(a)Amount does not include the provision for the allowance for credit losses on unfunded commitments.
(Dollars in thousands)
Beginning Balance, December 31, 2024
Provision for (Recovery of) Credit Losses (a)Charge-offsRecoveries
Ending Balance, September 30, 2025
Construction$878 $374 $— $— $1,252 
Commercial real estate, other16,256 2,332 (277)5 18,316 
Commercial and industrial13,283 5,972 (1,408)49 17,896 
Premium finance662 371 (269)12 776 
Leases12,893 19,881 (15,683)949 18,040 
Residential real estate6,491 (69)(213)139 6,348 
Home equity lines of credit1,792 127 (39)— 1,880 
Consumer, indirect8,576 3,375 (5,166)1,077 7,862 
Consumer, direct2,396 469 (541)61 2,385 
Deposit account overdrafts121 598 (834)224 109 
Total$63,348 $33,430 $(24,430)$2,516 $74,864 
(a)Amount does not include the provision for the allowance for credit losses on unfunded commitments.
(Dollars in thousands)Beginning Balance,
December 31, 2023		Provision for (Recovery of) Credit Losses (a)Charge-offsRecoveries
Ending Balance, September 30, 2024
Construction$699 $155 $— $— $854 
Commercial real estate, other20,915 (3,567)(212)103 17,239 
Commercial and industrial10,490 1,634 (550)18 11,592 
Premium finance484 357 (146)16 711 
Leases10,850 13,079 (7,400)441 16,970 
Residential real estate5,937 56 (144)209 6,058 
Home equity lines of credit1,588 220 (11)7 1,804 
Consumer, indirect8,590 4,808 (4,848)374 8,924 
Consumer, direct2,343 513 (529)43 2,370 
Deposit account overdrafts115 1,010 (1,232)224 117 
Total$62,011 $18,265 $(15,072)$1,435 $66,639 
(a)Amount does not include the provision for the allowance for credit losses on unfunded commitments.
During the third quarter of 2025, Peoples recorded a total provision for credit losses on loans of $7.0 million, which was primarily driven by (i) net charge offs, (ii) loan growth, and (iii) a slight deterioration in the economic forecasts used within the current expected credit loss ("CECL") model, partially offset by reductions in reserves for individually analyzed loans and leases. Net charge-offs for the third quarter of 2025 were $6.8 million, primarily driven by our NSL division. The increase in the allowance for credit losses at September 30, 2025 when compared to at June 30, 2025, was driven by the loan growth and the deterioration of economic forecasts, partially offset by a decrease in individually analyzed loans and leases.
During the third quarter of 2024, Peoples recorded a provision for credit losses of $6.5 million, which was driven by 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.
Peoples had recorded allowances for unfunded commitments of $2.7 million and $2.0 million as of September 30, 2025 and as of December 31, 2024, 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.