PEOPLES BANCORP INC. ANNOUNCES FOURTH QUARTER AND ANNUAL RESULTS FOR 2025

(1)

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

(2)

the effects of inflationary pressures on borrowers' liquidity and ability to repay;

(3)

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

(4)

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

(5)

uncertainty regarding the nature, timing, cost, and effect of legislative or regulatory changes or actions, or deposit insurance premium levels, promulgated and to be promulgated by governmental and regulatory agencies, including the Ohio Division of Financial Institutions, the Federal Deposit Insurance Corporation, the Federal Reserve Board and the Consumer Financial Protection Bureau, which may subject Peoples, its subsidiaries, or acquired companies to a variety of new and more stringent legal and regulatory requirements;

(6)

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

(7)

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

(8)

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

(9)

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

(10)

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

(11)

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

(12)

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

(13)

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

(14)

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

(15)

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

(16)

Peoples' ability to receive dividends from Peoples' subsidiaries;

(17)

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

(18)

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

(19)

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

(20)

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

(21)

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

(22)

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

(23)

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

(24)

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

(25)

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

(26)

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

(27)

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

(28)

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

(29)

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

(30)

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

(31)

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

(32)

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

(33)

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

(34)

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

(35)

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

(36)

the risk that energy tax credits purchased and used by Peoples to reduce tax liabilities will be disallowed by the IRS; and

(37)

other risk factors relating to the banking industry or Peoples as detailed from time to time in Peoples' reports filed with the Securities and Exchange Commission (the "SEC"), including those risk factors included in the disclosures under the heading "ITEM 1A. RISK FACTORS" of Peoples' Annual Report on Form 10-K for the fiscal year ended December 31, 2024, as supplemented by the disclosures under the heading "ITEM 1A. RISK FACTORS" of Peoples' Quarterly Report on Form 10-Q for the quarter ended September 30, 2025. Peoples encourages readers of this news release to understand forward-looking statements to be strategic objectives rather than absolute targets of future performance. Peoples undertakes no obligation to update these forward-looking statements to reflect events or circumstances after the date of this news release or to reflect the occurrence of unanticipated events, except as required by applicable legal requirements. Copies of documents filed with the SEC are available free of charge at the SEC's website at http://www.sec.gov and/or from Peoples' website - www.peoplesbancorp.com under the "Investor Relations" section.

PER COMMON SHARE DATA AND SELECTED RATIOS (Unaudited)

At or For the Three Months Ended

For the Year Ended

December 31,

September 30,

December 31,

December 31,

2025

2025

2024

2025

2024

PER COMMON SHARE:

Earnings per common share:

   Basic

$            0.90

$            0.83

$            0.77

$     3.03

$      3.34

   Diluted

0.89

0.83

0.76

2.99

3.31

Cash dividends declared per common share

0.41

0.41

0.40

1.63

1.59

Book value per common share (a)

33.78

33.13

31.26

33.78

31.26

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

22.77

22.05

19.94

22.77

19.94

Closing price of common shares at end of period

$          30.03

$          29.99

$          31.69

$   30.03

$    31.69

SELECTED RATIOS:

Return on average stockholders' equity (c)

10.53 %

10.06 %

9.56 %

9.22 %

10.81 %

Return on average tangible equity (c)(d)

16.57 %

16.17 %

16.15 %

14.97 %

18.61 %

Return on average assets (c)

1.31 %

1.22 %

1.17 %

1.13 %

1.28 %

Efficiency ratio (e)(f)

57.78 %

57.11 %

59.57 %

58.68 %

57.97 %

Net interest margin (c)(f)

4.12 %

4.16 %

4.15 %

4.14 %

4.21 %

Dividend payout ratio (g)

46.10 %

49.72 %

52.79 %

54.45 %

48.06 %

(a)

Data presented as of the end of the period indicated.

(b)

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

(c)

Ratios are presented on an annualized basis.

(d)

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

(e)

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

(f)

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

(g) 

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

CONSOLIDATED STATEMENTS OF INCOME 

Three Months Ended

For the Year Ended

December 31,

September 30,

December 31,

December 31,

2025

2025

2024

2025

2024

(Dollars in thousands, except per share data)

(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)

Total interest income

$            130,549

$             132,808

$            128,793

$        514,306

$         520,776

Total interest expense

39,500

41,459

42,257

159,076

172,075

Net interest income

91,049

91,349

86,536

355,230

348,701

Provision for credit losses

8,050

7,280

6,267

42,162

24,787

Net interest income after provision for credit losses

82,999

84,069

80,269

313,068

323,914

Non-interest income:

Electronic banking income

6,329

6,538

6,267

25,024

25,142

Trust and investment income

5,692

5,414

5,033

21,448

19,513

Deposit account service charges

4,617

4,274

4,502

16,965

17,584

Insurance income

4,520

4,469

4,523

19,592

19,401

Lease income

4,290

3,643

3,222

15,612

10,480

Bank owned life insurance income

1,173

1,143

1,219

4,561

4,216

Mortgage banking income

537

245

173

1,398

1,788

Net (loss) gain on investment securities

(77)

(2,580)

12

(2,659)

(416)

Net loss on asset disposals and other transactions

(1,908)

(478)

(1,746)

(3,027)

(3,310)

Other non-interest income

1,099

1,159

1,884

5,164

4,968

  Total non-interest income

26,272

23,827

25,089

104,078

99,366

Non-interest expense:

Salaries and employee benefit costs

39,118

38,698

37,499

156,530

150,041

Data processing and software expense

7,401

7,356

6,598

29,118

25,221

Net occupancy and equipment expense

5,980

5,896

5,821

23,178

24,151

Professional fees

3,168

2,798

3,311

12,663

12,109

Amortization of other intangible assets

2,210

2,211

2,800

8,845

11,161

Electronic banking expense

2,120

2,161

1,982

8,324

7,548

Operating lease expense

1,513

1,039

1,102

4,590

3,539

FDIC insurance expense

1,350

1,284

1,251

5,136

4,929

Other loan expenses

1,219

1,385

857

4,936

4,147

Marketing expense

1,059

1,001

1,206

3,681

3,914

Franchise tax expense

845

916

664

3,368

3,222

Communication expense

589

664

796

2,699

3,145

Travel and entertainment expense

556

796

723

2,565

2,656

Other non-interest expense

4,166

3,689

5,893

16,704

18,033

  Total non-interest expense

71,294

69,894

70,503

282,337

273,816

  Income before income taxes

37,977

38,002

34,855

134,809

149,464

Income tax expense

6,223

8,526

7,925

28,031

32,259

    Net income

$              31,754

$               29,476

$              26,930

$        106,778

$         117,205

CONSOLIDATED STATEMENTS OF INCOME (Cont.)

Three Months Ended

For the Year Ended

December 31,

September 30,

December 31,

December 31,

2025

2025

2024

2025

2024

(Dollars in thousands, except per share data)

(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)

PER COMMON SHARE DATA:

Net income available to common shareholders

$              31,754

$               29,476

$              26,930

$        106,778

$         117,205

Less: Dividends paid on unvested common shares

190

208

210

818

786

Less: Undistributed income allocated to unvested common shares

60

46

44

160

227

Net earnings allocated to common shareholders

$              31,504

$               29,222

$              26,676

$        105,800

$         116,192

Weighted-average common shares outstanding

35,025,892

35,003,054

34,819,062

34,974,619

34,779,548

Effect of potentially dilutive common shares

418,506

395,755

453,003

383,490

367,806

Total weighted-average diluted common shares outstanding

35,444,398

35,398,809

35,272,065

35,358,109

35,147,354

Earnings per common share – basic

$                  0.90

$                   0.83

$                  0.77

$              3.03

$               3.34

Earnings per common share – diluted

$                  0.89

$                   0.83

$                  0.76

$              2.99

$               3.31

Cash dividends declared per common share

$                  0.41

$                   0.41

$                  0.40

$              1.63

$               1.59

Weighted-average common shares outstanding – basic

35,025,892

35,003,054

34,819,062

34,974,619

34,779,548

Weighted-average common shares outstanding – diluted

35,444,398

35,398,809

35,272,065

35,358,109

35,147,354

Common shares outstanding at the end of period

35,714,484

35,705,369

35,563,590

35,714,484

35,563,590

CONSOLIDATED BALANCE SHEETS

December 31,

December 31,

2025

2024

(Dollars in thousands)

(Unaudited)

Assets

Cash and cash equivalents:

  Cash and due from banks

$            107,864

$            108,721

  Interest-bearing deposits in other banks

81,087

108,943

    Total cash and cash equivalents

188,951

217,664

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

 $1,076,980 at December 31, 2025 and $1,229,382 at December 31, 2024) (a)

984,367

1,083,555

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

  $867,714 at December 31, 2025 and $692,499 at December 31, 2024) (a)

922,837

774,800

Other investment securities, at cost

68,656

60,132

    Total investment securities (a)

1,975,860

1,918,487

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

6,756,907

6,358,003

Allowance for credit losses

(75,676)

(63,348)

    Net loans and leases

6,681,231

6,294,655

Loans held for sale

2,667

2,348

Bank premises and equipment, net of accumulated depreciation

100,508

103,669

Bank owned life insurance

148,264

143,710

Goodwill

363,199

363,199

Other intangible assets

30,120

39,223

Other assets

158,830

171,292

    Total assets

$         9,649,630

$         9,254,247

Liabilities

Deposits:

Non-interest-bearing

$         1,545,428

$         1,507,661

Interest-bearing

6,064,796

6,082,544

    Total deposits

7,610,224

7,590,205

Short-term borrowings

530,285

193,474

Long-term borrowings

204,138

238,073

Accrued expenses and other liabilities

98,381

120,905

    Total liabilities

$         8,443,028

$         8,142,657

Stockholders' Equity

Preferred shares, no par value, 50,000 shares authorized, no shares issued at December 31, 2025 or
at December 31, 2024

—

—

Common shares, no par value, 50,000,000 shares authorized, 36,836,943 shares issued at December 31,
2025 and 36,782,601 shares issued at December 31, 2024, including shares in treasury

871,571

866,844

Retained earnings

436,748

388,109

Accumulated other comprehensive loss, net of deferred income taxes

(70,628)

(110,385)

Treasury stock, at cost, 1,215,120 common shares at December 31, 2025 and 1,311,175 common shares
at December 31, 2024

(31,089)

(32,978)

    Total stockholders' equity

1,206,602

1,111,590

    Total liabilities and stockholders' equity

$         9,649,630

$         9,254,247

(a)

Available-for-sale investment securities and held-to-maturity investment securities are presented net of allowance for credit losses of of $0 and $236 and $0 and $237 for December 31, 2025 and December 31, 2024, respectively.

(b)

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

SELECTED FINANCIAL INFORMATION (Unaudited)

December 31,

September 30,

June 30,

March 31,

December 31,

(Dollars in thousands)

2025

2025

2025

2025

2024

Loan Portfolio

Construction

$         300,941

$           261,048

$         341,313

$         319,104

$         328,388

Commercial real estate, other

2,363,967

2,369,396

2,248,214

2,230,538

2,156,013

Commercial and industrial

1,535,755

1,489,505

1,407,382

1,343,827

1,347,645

Premium finance

253,075

273,297

277,622

264,080

269,435

Leases

365,649

382,753

400,052

395,454

406,598

Residential real estate

861,722

875,773

877,968

848,168

835,101

Home equity lines of credit

253,864

247,383

241,785

235,409

232,661

Consumer, indirect

700,582

710,385

692,674

680,260

669,857

Consumer, direct

120,338

118,206

113,615

110,639

111,052

Deposit account overdrafts

1,014

982

964

1,047

1,253

    Total loans and leases

$      6,756,907

$        6,728,728

$      6,601,589

$      6,428,526

$      6,358,003

Total acquired loans and leases (a)

$      1,299,543

$        1,380,354

$      1,452,475

$      1,511,704

$      1,557,728

    Total originated loans and leases

$      5,457,364

$        5,348,374

$      5,149,114

$      4,916,822

$      4,800,275

Total Investment Securities

$      1,975,860

$        1,972,721

$      2,019,054

$      1,878,462

$      1,918,487

Deposit Balances

Non-interest-bearing deposits (b)

$      1,545,428

$        1,536,094

$      1,530,824

$      1,526,285

$      1,507,661

Interest-bearing deposits:

  Interest-bearing demand accounts (b)

1,092,252

1,068,443

1,058,910

1,087,197

1,085,152

  Retail certificates of deposit

1,983,791

2,008,619

2,005,322

1,965,978

1,921,415

  Money market deposit accounts

945,313

948,177

927,543

967,331

878,254

  Governmental deposit accounts

739,939

769,782

781,949

834,409

775,782

  Savings accounts

887,402

884,230

889,872

894,592

866,959

  Brokered deposits

416,099

416,851

442,788

458,957

554,982

    Total interest-bearing deposits

$      6,064,796

$        6,096,102

$      6,106,384

$      6,208,464

$      6,082,544

    Total deposits

$      7,610,224

$        7,632,196

$      7,637,208

$      7,734,749

$      7,590,205

Total demand deposits (b)

$      2,637,680

$        2,604,537

$      2,589,734

$      2,613,482

$      2,592,813

Asset Quality

Nonperforming assets (NPAs):

  Loans 90+ days past due and accruing

$            5,628

$               4,898

$             6,126

$             4,207

$             8,637

  Nonaccrual loans

36,886

33,889

34,485

35,628

34,129

    Total nonperforming loans (NPLs) (f)

42,514

38,787

40,611

39,835

42,766

  Other real estate owned (OREO)

123

6,013

6,013

5,980

6,170

Total NPAs (f)

$          42,637

$             44,800

$           46,624

$           45,815

$           48,936

Criticized loans (c)

$         236,468

$           268,326

$         244,442

$         226,542

$         241,302

Classified loans (d)

147,175

158,577

125,014

123,842

128,815

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

178.00 %

193.01 %

183.89 %

163.76 %

148.13 %

NPLs as a percent of total loans (f)

0.63 %

0.58 %

0.61 %

0.62 %

0.67 %

NPAs as a percent of total assets (f)

0.44 %

0.47 %

0.49 %

0.50 %

0.53 %

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

0.63 %

0.66 %

0.71 %

0.71 %

0.77 %

Criticized loans as a percent of total loans (c)

3.50 %

3.99 %

3.70 %

3.52 %

3.80 %

Classified loans as a percent of total loans (d)

2.18 %

2.36 %

1.89 %

1.93 %

2.03 %

Allowance for credit losses as a percent of total loans

1.12 %

1.11 %

1.13 %

1.01 %

1.00 %

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

34.66 %

34.13 %

33.91 %

33.79 %

34.16 %

Capital Information (e)(g)(i)

Common equity tier 1 capital ratio (h)

12.29 %

12.11 %

11.95 %

12.10 %

11.95 %

Tier 1 risk-based capital ratio

12.72 %

12.54 %

12.39 %

12.54 %

12.39 %

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

13.78 %

13.79 %

13.71 %

13.75 %

13.58 %

Leverage ratio

9.91 %

9.74 %

9.83 %

9.80 %

9.73 %

Common equity tier 1 capital

$         893,970

$           875,454

$         857,036

$         845,200

$         833,128

Tier 1 capital

925,616

906,900

888,282

876,246

863,974

Total capital (tier 1 and tier 2)

1,002,226

997,309

982,929

960,820

946,724

Total risk-weighted assets

$      7,275,089

$        7,231,476

$      7,170,841

$      6,986,418

$      6,971,490

Total stockholders' equity to total assets

12.50 %

12.29 %

12.09 %

12.31 %

12.01 %

Tangible equity to tangible assets (j)

8.79 %

8.53 %

8.26 %

8.34 %

8.01 %

(a)

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

(b)

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

(c)

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

(d)

Includes loans categorized as substandard or doubtful.

(e)

Data presented as of the end of the period indicated.

(f)

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

(g)

December 31, 2025 data based on preliminary analysis and subject to revision.

(h)

Peoples' capital conservation buffer was 5.78% at December 31, 2025, 5.79% at September 30, 2025, 5.71% at June 30, 2025, 5.75% at March 31, 2025, and 5.58% at December 31, 2024 compared to required capital conservation buffer of 2.50%

(i)

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

(j)

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

PROVISION FOR (RECOVERY OF) CREDIT LOSSES INFORMATION

Three Months Ended

For the Year Ended

December 31,

September 30,

December 31,

December 31,

2025

2025

2024

2025

2024

(Dollars in thousands)

(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)

Provision for credit losses

Provision for credit losses

$            7,801

$              7,004

$            6,014

$       41,315

$     23,524

Provision for checking account overdrafts

249

276

253

847

1,263

  Total provision for credit losses

$            8,050

$              7,280

$            6,267

$       42,162

$     24,787

Net Charge-Offs

Gross charge-offs

$            8,391

$              7,841

$          10,040

$       32,821

$     25,112

Recoveries

952

1,012

454

3,468

1,889

  Net charge-offs

$            7,439

$              6,829

$            9,586

$       29,353

$     23,223

Net Charge-Offs (Recoveries) by Type

Construction

$               (25)

$                   —

$                 —

$            (25)

$            —

Commercial real estate, other

(41)

26

195

231

304

Commercial and industrial

340

446

78

1,699

610

Premium finance

212

102

51

469

181

Leases

5,356

4,487

7,619

20,090

14,578

Residential real estate

24

31

99

98

34

Home equity lines of credit

2

27

—

41

4

Consumer, indirect

1,173

1,189

1,153

5,262

5,627

Consumer, direct

151

263

142

631

628

Deposit account overdrafts

247

258

249

857

1,257

  Total net charge-offs

$            7,439

$              6,829

$            9,586

$       29,353

$     23,223

As a percent of average total loans (annualized)

0.44 %

0.41 %

0.61 %

0.45 %

0.37 %

SUPPLEMENTAL INFORMATION (Unaudited)

December 31,

September 30,

June 30,

March 31,

December 31,

(Dollars in thousands)

2025

2025

2025

2025

2024

Trust assets under administration and management

$         2,219,650

$          2,271,536

$           2,138,439

$          2,037,992

$         2,061,267

Brokerage assets under administration and management

1,846,084

1,800,781

1,724,311

1,626,768

1,614,189

Mortgage loans serviced for others

322,139

323,347

326,710

337,279

346,189

Employees (full-time equivalent)

1,454

1,454

1,477

1,460

1,479

CONSOLIDATED AVERAGE BALANCE SHEETS AND NET INTEREST INCOME (Unaudited)

Three Months Ended

December 31, 2025

September 30, 2025

December 31, 2024

(Dollars in thousands)

Balance

Income/

Expense

Yield/ Cost

Balance

Income/

Expense

Yield/ Cost

Balance

Income/

Expense

Yield/ Cost

Assets

Short-term investments

$      77,906

$        773

3.94 %

$      71,028

$       782

4.37 %

$    123,303

$    1,432

4.62 %

Investment securities (a)(b)

1,986,490

18,229

3.67 %

2,018,463

19,119

3.79 %

1,910,266

16,353

3.42 %

Loans (b)(c):

Construction

272,994

5,108

7.32 %

333,782

5,759

6.75 %

324,856

6,139

7.39 %

Commercial real estate, other

2,258,134

35,222

6.10 %

2,144,859

34,751

6.34 %

2,034,083

34,776

6.69 %

Commercial and industrial

1,500,548

24,910

6.50 %

1,428,843

25,090

6.87 %

1,259,636

23,467

7.29 %

Premium finance

260,833

4,868

7.30 %

273,730

5,820

8.32 %

277,219

5,772

8.15 %

Leases

368,453

9,663

10.26 %

390,499

9,520

9.54 %

412,686

11,528

10.93 %

Residential real estate (d)

978,507

13,143

5.37 %

990,040

13,466

5.44 %

909,719

12,125

5.33 %

Home equity lines of credit

251,730

4,771

7.52 %

245,024

4,765

7.72 %

234,189

4,669

7.93 %

Consumer, indirect

703,178

11,590

6.54 %

703,619

11,545

6.51 %

670,470

10,590

6.28 %

Consumer, direct

127,434

2,538

7.90 %

123,927

2,470

7.91 %

118,370

2,229

7.49 %

Total loans

6,721,811

111,813

6.54 %

6,634,323

113,186

6.71 %

6,241,228

111,295

7.01 %

Allowance for credit losses

(74,351)

(74,485)

(65,798)

Net loans

6,647,460

6,559,838

6,175,430

Total earning assets

8,711,856

130,815

5.92 %

8,649,329

133,087

6.07 %

8,208,999

129,080

6.20 %

Goodwill and other intangible assets

394,409

396,636

402,930

Other assets

524,509

528,305

534,128

Total assets

$ 9,630,774

$ 9,574,270

$ 9,146,057

Liabilities and Equity

Interest-bearing deposits:

Savings accounts

$    886,250

$        185

0.08 %

$    890,316

$       196

0.09 %

$    862,257

$       209

0.10 %

Governmental deposit accounts

774,267

4,278

2.19 %

787,079

4,745

2.39 %

811,633

5,233

2.56 %

Interest-bearing demand accounts

1,053,419

611

0.23 %

1,084,051

617

0.23 %

1,081,591

580

0.21 %

Money market deposit accounts

959,627

5,220

2.16 %

954,778

5,671

2.36 %

892,370

5,518

2.46 %

Retail certificates of deposit

1,999,726

17,745

3.52 %

2,007,768

18,094

3.58 %

1,904,274

20,037

4.19 %

Brokered deposits (e)

412,883

4,196

4.03 %

431,501

4,567

4.20 %

508,944

5,568

4.35 %

Total interest-bearing deposits

6,086,172

32,235

2.10 %

6,155,493

33,890

2.18 %

6,061,069

37,145

2.44 %

Short-term borrowings (e)

429,129

4,201

3.91 %

368,456

4,044

4.36 %

92,472

1,088

4.70 %

Long-term borrowings

211,244

3,064

5.74 %

229,388

3,525

6.07 %

237,835

4,025

6.69 %

Total borrowed funds

640,373

7,265

4.51 %

597,844

7,569

5.02 %

330,307

5,113

6.13 %

Total interest-bearing liabilities

6,726,545

39,500

2.33 %

6,753,337

41,459

2.44 %

6,391,376

42,258

2.63 %

Non-interest-bearing deposits

1,605,305

1,544,184

1,516,933

Other liabilities

102,419

113,981

117,151

Total liabilities

8,434,269

8,411,502

8,025,460

Stockholders' equity

1,196,505

1,162,768

1,120,597

Total liabilities and stockholders' equity

$ 9,630,774

$ 9,574,270

$ 9,146,057

Net interest income/spread (b)

$   91,315

3.59 %

$  91,628

3.63 %

$  86,822

3.57 %

Net interest margin (b)

4.12 %

4.16 %

4.15 %

(a)

Average balances are based on carrying value.

(b)

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

(c)

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

(d)

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

(e)

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

CONSOLIDATED AVERAGE BALANCE SHEETS AND NET INTEREST INCOME (Unaudited) -- (Continued)

For the Year Ended

December 31, 2025

December 31, 2024

(Dollars in thousands)

Balance

Income/

Expense

Yield/ Cost

Balance

Income/

Expense

Yield/ Cost

Assets

Short-term investments

$            81,069

$         3,493

4.31 %

$          125,112

$           6,810

5.44 %

Investment securities (a)(b)

1,953,642

70,753

3.62 %

1,877,878

64,129

3.42 %

Loans (b)(c):

Construction

313,770

22,374

7.03 %

330,989

25,791

7.66 %

Commercial real estate, other

2,146,287

136,666

6.28 %

2,058,450

146,077

6.98 %

Commercial and industrial

1,398,410

96,637

6.82 %

1,237,068

95,609

7.60 %

Premium finance

265,302

22,016

8.18 %

259,374

22,134

8.39 %

Leases

384,519

39,668

10.17 %

416,728

47,498

11.21 %

Residential real estate (d)

974,804

51,050

5.24 %

921,725

47,017

5.10 %

Home equity lines of credit

242,509

18,458

7.61 %

227,046

18,414

8.11 %

Consumer, indirect

692,001

44,720

6.46 %

666,083

39,912

5.99 %

Consumer, direct

122,181

9,579

7.84 %

120,607

8,694

7.21 %

Total loans

6,539,783

441,168

6.68 %

6,238,070

451,146

7.14 %

Allowance for credit losses

(69,316)

(64,491)

Net loans

6,470,467

6,173,579

Total earning assets

8,505,178

515,414

6.01 %

8,176,569

522,085

6.32 %

Goodwill and other intangible assets

397,810

406,619

Other assets

521,992

539,655

Total assets

$       9,424,980

$       9,122,843

Liabilities and Equity

Interest-bearing deposits:

Savings accounts

$          886,299

$            818

0.09 %

$          882,748

$              885

0.10 %

Governmental deposit accounts

788,713

18,549

2.35 %

799,195

21,872

2.74 %

Interest-bearing demand accounts

1,067,748

2,315

0.22 %

1,089,688

2,118

0.19 %

Money market deposit accounts

941,861

21,775

2.31 %

845,547

21,434

2.53 %

Retail certificates of deposit

1,986,437

72,506

3.65 %

1,774,419

74,509

4.20 %

Brokered deposit (e)

456,594

19,202

4.21 %

492,390

21,295

4.32 %

Total interest-bearing deposits

6,127,652

135,165

2.21 %

5,883,987

142,113

2.42 %

Short-term borrowings (e)

246,823

10,142

4.11 %

301,306

15,545

5.16 %

Long-term borrowings

227,866

13,769

6.01 %

234,472

14,418

6.11 %

Total borrowed funds

474,689

23,911

5.02 %

535,778

29,963

5.57 %

Total interest-bearing liabilities

6,602,341

159,076

2.41 %

6,419,765

172,076

2.68 %

Non-interest-bearing deposits

1,555,545

1,491,019

Other liabilities

109,531