PEOPLES BANCORP INC. ANNOUNCES SECOND QUARTER 2025 RESULTS

MARIETTA, Ohio, July 22, 2025 /PRNewswire/ -- Peoples Bancorp Inc. ("Peoples") (NASDAQ: PEBO) today announced results for the quarter ended June 30, 2025. Net income totaled $21.2 million for the second quarter of 2025, representing earnings per diluted common share of $0.59. In comparison, Peoples reported net income of $24.3 million, representing earnings per diluted common share of $0.68, for the first quarter of 2025 and net income of $29.0 million, representing earnings per diluted common share of $0.82, for the second quarter of 2024.

"We are pleased with strong annualized loan growth and net interest margin expansion in the second quarter" said Tyler Wilcox, President and Chief Executive Officer. "For our shareholders, we remain focused on driving sustainable growth and delivering strong returns." 

Statement of Operations Summary:

• Net interest income for the second quarter of 2025 increased $2.3 million, or 3%, when compared to the linked quarter driven by lower funding costs.
  • Net interest margin increased to 4.15% for the second quarter of 2025, compared to 4.12% for the linked quarter, driven by lower deposit and borrowing costs.
  • Accretion income, net of amortization expense, contributed 12 basis points to margin for the second quarter, down 5 basis points from the 17 basis points of accretion income, net of amortization expense, recognized in the linked quarter.
• Peoples recorded a provision for credit losses of $16.6 million for the second quarter of 2025, compared to a provision for credit losses of $10.2 million for the first quarter of 2025.
  • The provision for credit losses was primarily driven by (i) net charge offs, (ii) an increase in reserves on individually-analyzed loans and leases, (iii) an increase in reserves for leases originated by our North Star Leasing division, (iv) a periodic refresh in loss drivers utilized within the current expected credit loss ("CECL") model, (v) deterioration in the economic forecasts used within the CECL model, and (vi) loan growth. The provision for credit losses negatively impacted earnings per diluted common share by $0.36 for the second quarter of 2025 and $0.22 for the first quarter of 2025.
• Total non-interest income, excluding net gains and losses, decreased $0.3 million, or 1%, for the second quarter of 2025 compared to the linked quarter.
  • The decrease was driven by the decrease in insurance income due to annual seasonal-performance-based commissions received in the first quarter of each year, partially offset by increases in lease income and electronic banking income.
• Total non-interest expense for the second quarter of 2025 decreased $0.4 million compared to the linked quarter.
  • The decrease was the result of lower salaries and employee benefit costs due to certain anticipated annual employee salaries and benefits costs that occur in the first quarter of each year.
  • The efficiency ratio for the second quarter of 2025 was 59.3%, compared to 60.7% for the linked quarter.

Balance Sheet Summary:

• Period-end total loan and lease balances at June 30, 2025, increased $173.1 million, or 11% annualized, compared to at March 31, 2025.
  • The increase in loans was driven primarily by growth in commercial and industrial loans and residential real estate loans.
• Key asset quality metrics remained relatively stable during the second quarter of 2025.
  • Delinquency trends improved compared to the linked quarter as loans considered current comprised 99.1% of the loan portfolio.
  • Criticized loans increased $17.9 million, or 18 basis points as a percent of total loans, compared to at March 31, 2025, primarily driven by the downgrade of one commercial relationship.
  • Classified loans increased $1.2 million compared to at March 31, 2025, driven by loan downgrades.
• Period-end total deposit balances at June 30, 2025, decreased $97.5 million, or 1%, compared to at March 31, 2025.
  • The decrease in deposits was driven by decreases in governmental deposit accounts, which were driven by seasonality, and decreases in money market deposit accounts.
  • Total loan balances were 86% and 83% of total deposit balances at June 30, 2025, and at March 31, 2025, respectively.

Net Interest Income
Net interest income was $87.6 million for the second quarter of 2025 and increased $2.3 million when compared to the linked quarter. Net interest margin was 4.15% for the second quarter of 2025, compared to 4.12% for the linked quarter. The increase in net interest income and margin was primarily driven by lower deposit and borrowing costs.

Net interest income for the second quarter of 2025 increased $1.0 million, or 1%, compared to the second quarter of 2024.  Net interest margin decreased 3 basis points when compared to the second quarter of 2024. The increase in net interest income was primarily driven by higher loan balances. The decrease of net interest margin was driven by reductions in loan yields, driven by lower accretion income, partially offset by lower funding costs.

Accretion income, net of amortization expense, from acquisitions was $2.6 million for the second quarter of 2025, $3.5 million for the linked quarter and $5.8 million for the second quarter of 2024, which added 12 basis points, 17 basis points and 28 basis points, respectively, to net interest margin. The decrease in accretion income for the second quarter of 2025 when compared to the linked quarter and the second quarter of 2024 was driven by fewer loan payoffs and more accretion recognized in 2024 from the merger with Limestone Bancorp, Inc. ("Limestone Merger").

For the first six months of 2025, net interest income decreased $0.4 million compared to the first six months of 2024, while net interest margin decreased 8 basis points to 4.14%. The decrease in net interest income and net interest margin for the first six months of 2025 compared to the first six months of 2024 was primarily driven by lower accretion income.

Accretion income, net of amortization expense, from acquisitions was $6.1 million for the six months ended June 30, 2025, compared to $12.3 million for the six months ended June 30, 2024, which added 15 and 30 basis points, respectively, to net interest margin. The decrease in accretion income for the first six months of 2025 compared to the same period in 2024 was due to more accretion recognized in 2024 from the Limestone Merger.

Provision for Credit Losses:
The provision for credit losses was $16.6 million for the second quarter of 2025, compared to $10.2 million for the linked quarter and $5.7 million for the second quarter of 2024. The provision for credit losses for the second quarter of 2025 was primarily driven by (i) net charge offs, (ii) an increase in reserves for individually analyzed loans and leases, (iii) an increase in reserves for leases originated by our North Star Leasing division, (iv) a periodic refresh in loss drivers utilized within the CECL model, (v) deterioration in the economic forecasts used within the CECL model, (vi) and loan growth. The provision for the first quarter of 2025 was primarily driven by net charge-offs. The provision for credit losses for the second quarter of 2024 was driven by (i) higher net charge-offs, (ii) an increase of reserves on individually analyzed loans, and (iii) loan growth.

The provision for credit losses during the first six months of 2025 was $26.8 million, compared to a provision for credit losses of $11.8 million for the first six months of 2024. The provision for credit losses during the first six months of 2025 was mainly a result of (i) net charge offs, (ii) an increase in reserves for individually-analyzed loans and leases, (iii) an increase in reserves for leases originated by our North Star Leasing division, (iv) a periodic refresh in loss drivers utilized within the CECL model, (v) deterioration in the economic forecasts used within the CECL model, (vi) and loan growth. The provision for credit losses during the first six months of 2024 was mainly a result of (i) higher net charge-offs, (ii) an increase in reserves on individually analyzed loans and leases and (iii) loan growth. 

The provision for credit losses recorded represents the amount needed to maintain the appropriate level of the allowance for credit losses based on management's quarterly estimates. The provision for credit losses negatively impacted earnings per diluted common share by $0.36 for the second quarter of 2025, $0.22 for the first quarter of 2025, and $0.13 for the second quarter of 2024.

For additional information on net charge-offs, credit trends and the allowance for credit losses, see the "Asset Quality" section below.

Net Gains and Losses:
Net gains and losses include gains and losses on investment securities, asset disposals and other transactions, which are included in total non-interest income on the Consolidated Statements of Income. The net loss for the second quarter of 2025 was $0.3 million, compared to a net loss of $0.4 million for the linked quarter, and a net loss of $0.8 million for the second quarter of 2024. The net losses for both the second quarter of 2025 and the first quarter of 2025 were driven by a $0.3 million loss on repossessed assets in each quarter. The net loss for the second quarter of 2024 was due to $0.4 million of net losses on repossessed assets.

The net loss realized during the first six months of 2025 was $0.6 million, compared to a net loss realized of $1.1 million for the first six months of 2024. The net loss for the first six months of 2025 was primarily driven by the $0.6 million of net losses on repossessed assets. The net loss recognized in the first six months of 2024 was primarily driven by a $0.7 million of net losses on repossessed assets.

Total Non-interest Income, Excluding Net Gains and Losses:
Total non-interest income, excluding net gains and losses, for the second quarter of 2025 decreased $0.3 million compared to the linked quarter. The decrease in non-interest income, excluding net gains and losses, was primarily impacted by a decrease of $1.5 million in insurance income due to seasonal performance-based commissions being received in the first quarter of each year, partially offset by an increase of $0.7 million in lease income, driven by gains on terminated Vantage Financial, LLC ("Vantage") leases, and an increase of $0.4 million in electronic banking income, driven by debit card interchange fees. Total non-interest income, excluding net gains and losses, for the second quarter of 2025 was 24% of total revenue (defined as net interest income plus total non-interest income excluding net gains and losses) consistent with the linked quarter.

Compared to the second quarter of 2024, total non-interest income, excluding net gains and losses, increased $2.7 million, due to an increase of $2.0 million in lease income, which was driven by operating lease income, an increase of $0.4 million in insurance income, and an increase of $0.3 million in other non-interest income, which was driven by swap fee income, partially offset by a decrease of $0.3 million in deposit account service charges.

For the first six months of 2025, total non-interest income, excluding gains and losses, increased $4.0 million, or 8%, compared to the first six months of 2024. The increase was driven by (i) a $3.5 million increase in lease income, driven by gains on early Vantage lease terminations and operating lease income, (ii) a $0.9 million increase in other non-interest income, driven by an increase swap fee income due to customer demand, and (iii) a $0.7 million increase in trust and investment income, driven by an increase in assets under administration and management. These increases were partially offset by a $0.5 million decrease in deposit account service charges and $0.4 million decrease in electronic banking income due to customer activity.

Total Non-interest Expense:
Total non-interest expense decreased $0.4 million for the second quarter of 2025, compared to the linked quarter. The decrease in total non-interest expense was primarily due to a decreases of $0.9 million in salaries and employee benefit costs and $0.4 million in other non-interest expense, driven by lower corporate expenses, partially offset with increases of $0.5 million in professional fees and $0.4 million in data processing and software expenses. The decrease in salaries and employee benefit costs was due to annual expenses that occur in the first quarter of each year including stock-based compensation expenses attributable to forfeiture rate true-up on stock vested along with up-front expense on stock grants to certain retirement-eligible employees, and health savings account ("HSA") contributions.

Compared to the second quarter of 2024, total non-interest expense increased $1.6 million, or 2%. The increase in total non-interest expense was primarily driven by increases of $2.3 million in salaries and employee benefit costs, which were driven by higher sales-based incentive, medical costs, and payroll taxes, $0.7 million in professional fees, and $0.6 million in data processing and software expense, offset by decreases of $1.6 million in other non-interest expense, driven by a one-time $1.3 million true-up of corporate expenses recorded in the second quarter of 2024, and $0.6 million in amortization of other intangible assets.

For the first six months of 2025, total non-interest expense increased $3.9 million, or 3%, compared to the first six months of 2024. The increase was driven by increases of (i) $3.3 million in salaries and employee benefits costs, which were driven by higher sales-based incentive and medical costs, (ii) $1.8 million in data processing and software expenses, (iii) $0.8 million in professional fees, and (iv) $0.6 million in operating lease expense, partially offset with decreases of $1.2 million in amortization of other intangible assets and $1.1 million in net occupancy and equipment expense.

The efficiency ratio for the second quarter of 2025 was 59.3%, compared to 60.7% for the linked quarter and 59.2% for the second quarter of 2024. The efficiency ratio improved compared to the linked quarter mainly as the result of higher net interest income and lower non-interest expenses. The efficiency ratio for the first six months of 2025 was 60.0%, compared to 58.6% for the first six months of 2024. The efficiency ratio increased compared to the prior year first six months due to the increase in non-interest expense and lower net interest income. Peoples continues to focus on controlling expenses, while recognizing necessary costs in order to continue growing the business. 

Income Tax Expense: 
Peoples recorded income tax expense of $6.2 million with an effective tax rate of 22.7% for the second quarter of 2025, compared to income tax expense of $7.0 million with an effective tax rate of 22.4% for the linked quarter and income tax expense of $6.9 million with an effective tax rate of 19.1% for the second quarter of 2024. The decrease in income tax expense when compared to the prior quarter is primarily due to lower net income. The effective tax rate in the prior year quarter was lower due to a $1.1 million one-time benefit related to a prior year amended return. Peoples recorded income tax expense of $13.3 million with an effective tax rate of 22.6% for the first six months of 2025 and $15.1 million with an effective tax rate of 20.5% in the first six months of 2024. The decrease was driven by lower pre-tax income.

Investment Securities and Liquidity:
Peoples' investment portfolio primarily consists of available-for-sale investment securities reported at fair value and held-to-maturity investment securities reported at amortized cost. The available-for-sale investment securities balance at June 30, 2025, decreased $22.2 million when compared to at March 31, 2025, decreased $32.1 million when compared to at December 31, 2024, and decreased $67.6 million when compared to at June 30, 2024. The balances of unrealized losses, net of tax, on available-for-sale investment securities recognized within accumulated other comprehensive loss were $90.9 million, $96.6 million, and $112.7 million at June 30, 2025, at March 31, 2025, and at June 30, 2024, respectively. The decrease in accumulated other comprehensive loss was the result of the changes in the market value of available-for-sale investment securities during the period and were driven by changes in market interest rates. At June 30, 2025, Peoples' investment securities represented approximately 21.2% of total assets, compared to 20.7% at December 31, 2024, and 20.4% at June 30, 2024.

The held-to-maturity investment securities balance at June 30, 2025 increased $146.6 million when compared to at March 31, 2025, increased $125.2 million when compared to at December 31, 2024, and increased $198.0 million when compared to at June 30, 2024. The increase when compared to all prior periods was primarily driven by purchases of higher yielding, longer duration securities.

The effective durations of the available for sale investment securities and the held-to maturity investment securities as of June 30, 2025, were approximately 5.57 and 7.66, respectively. The duration of Peoples' investments is managed as part of its Asset Liability Management program, and has the potential to impact both liquidity and capital, as mismatches in duration may require a liquidation of investment securities at market prices to meet funding needs. These assets are one component of Peoples' liquidity profile.

Peoples maintains a number of liquid and liquefiable assets, borrowing capacity, and other sources of liquidity to ensure the availability of funds. At June 30, 2025, Peoples had liquid and liquefiable assets totaling $878.5 million, which included (i) cash and cash equivalents, (ii) unpledged government and agency investment securities and (iii) unpledged non-agency investment securities that could be liquidated. At June 30, 2025, Peoples had a total borrowing capacity of $607.5 million available through the Federal Home Loan Bank ("FHLB"), the Federal Reserve Bank ("FRB"), and federal funds. Additionally, at June 30, 2025, Peoples had contingent sources of liquidity totaling $3.7 billion. Cash and cash equivalents decreased $31.6 million when compared to December 31, 2024 due to timing of deposit inflows and loan outflows as of December 31, 2024.

Loans and Leases:
The period-end total loan and lease balances at June 30, 2025, increased $173.1 million, or 11% annualized, compared to at March 31, 2025. The increase in loans was driven by an increase in all segments, excluding overdrafts. Growth in the portfolio was primarily driven by increases of $63.6 million in commercial and industrial loans, $29.8 million in residential real estate loans, $22.2 million in construction loans, $17.7 million in other commercial real estate loans, $13.5 million in premium finance loans, and $18.5 million in Vantage leases, offset by a decrease of $13.9 million in North Star leases.

The period-end total loan and lease balances at June 30, 2025, increased $243.6 million, or 4%, compared to at December 31, 2024, driven by increases of $92.2 million other commercial real estate loans, $59.7 million in commercial and industrial loans, $42.9 million in residential real estate loans, and $22.8 million in consumer indirect loans.

The period-end total loan and lease balances at June 30, 2025, increased $276.2 million, or 4%, compared to at June 30, 2024, driven by increases of $149.3 million in commercial and industrial loans, $88.6 million in residential real estate loans, and $52.2 million in commercial real estate loans, partially offset by decreases of $30.6 million and $15.7 million in leases and premium finance loans, respectively.

Quarterly average total loan balances increased $89.0 million, or 1%, compared to the linked quarter. The increase in average total loan balances when compared to the linked quarter was primarily the result of increases of (i) $41.8 million in other commercial real estate loans, (ii) $22.3 million in construction loans, (iii) $18.2 million in residential real estate loans, and (iv) $12.3 million in consumer indirect loans, partially offset with a decrease of $11.0 million in leases.

Compared to the second quarter of 2024, quarterly average loan balances increased $202.8 million, or 3%. The increase was driven by growth of (i) $95.7 million in commercial and industrial loans, (ii)$48.6 million in residential real estate loans, (iii) $36.2 million in other commercial real estate loans, and (iv) $30.1 million in indirect consumer loans, partially offset by a decrease of $35.6 million in leases.

Asset Quality:
Key asset quality metrics remained stable through the second quarter of 2025. Delinquency trends improved as loans considered current comprised 99.1%, 98.5%, and 98.8% of the loan portfolio at June 30, 2025, at March 31, 2025, and at June 30, 2024, respectively. Total nonperforming assets at June 30, 2025, increased $0.8 million, or 2%, compared to at March 31, 2025, and decreased $2.0 million, or 4%, compared to at June 30, 2024. The increase in nonperforming assets compared to the linked quarter was primarily driven by an increase in premium finance loans greater than 90 days past due, but for which we expect to collect as the unearned premium on the underlying policy can be recovered. The decrease in nonperforming assets compared to at June 30, 2024, was impacted by a decrease in the amount of leases greater than 90 days administratively delinquent. Nonperforming assets as a percent of total loans and OREO was 0.71% at June 30, 2025, compared to 0.71% at March 31, 2025, and 0.77% at June 30, 2024.

Criticized loans, which are those categorized as special mention, substandard or doubtful, increased $17.9 million, or 8%, compared to at March 31, 2025, and increased $4.5 million, or 2%, compared to at June 30, 2024. As a percent of total loans, criticized loans were 3.70% at June 30, 2025, compared to 3.52% at March 31, 2025, and 3.79% at June 30, 2024. The increase in the amount of criticized loans compared to at March 31, 2025 and at June 30, 2024 was driven by the downgrade of one commercial relationship.

Classified loans, which are those categorized as substandard or doubtful, increased $1.2 million, or 1%, compared to at March 31, 2025, and increased $4.8 million, or 4%, compared to at June 30, 2024. As a percent of total loans, classified loans were 1.89% at June 30, 2025, compared to 1.93% at March 31, 2025, and 1.90% at June 30, 2024. The increase in classified loans compared to at March 31, 2025, and at June 30, 2024, was primarily driven by loan downgrades.

Annualized net charge-offs were 0.43% of average total loans for the second quarter of 2025, compared to 0.52% for the linked quarter, and 0.27% for the second quarter of 2024. The decrease relative to the linked quarter was driven by a decrease in charge-offs in leases originated by our North Star Leasing business, which comprised 30 basis points of the second quarter net charge-off rate and 35 basis points of the linked quarter net charge-off rate. The increase in net charge-offs during the second quarter of 2025 versus the prior year second quarter was primarily attributable to an increase in charge-offs in leases originated by our North Star Leasing business.

At June 30, 2025, the allowance for credit losses increased $9.4 million when compared to at March 31, 2025, and increased $8.4 million when compared to at June 30, 2024. The ratio of the allowance for credit losses as a percent of total loans was 1.13% at June 30, 2025, compared to 1.01% at March 31, 2025, and 1.05% at June 30, 2024. The ratio of allowance for credit losses as a percentage of non-performing loans increased to 183.82% at June 30, 2025, compared to 163.76% at March 31, 2025, and 160.56% at June 30, 2024.

Deposits:
As of June 30, 2025, period-end total deposits decreased $97.5 million compared to at March 31, 2025, which was primarily driven by decreases of $52.5 million in governmental deposits, $39.8 million in money market deposits, $28.3 million in interest-bearing demand accounts, and $16.2 million in brokered deposits, partially offset by an increase of $39.3 million in retail certificates of deposit.  The decrease in governmental deposit accounts was due to the seasonality of those balances while the decrease in brokered deposit accounts was due to a strategic shift to other funding sources at lower rates. The increase in retail certificates of deposits was due to current specials being offered.

As of June 30, 2025, period-end total deposits increased $47.0 million compared to at December 31, 2024, which was primarily driven by increases of $83.9 million and $49.3 million in retail certificates of deposits and money market deposits, respectively, partially offset by a decrease of $112.2 million in brokered deposits. The increase in retail certificates of deposits was due to current specials being offered while the decrease in brokered deposit accounts was due to a strategic shift to other funding sources at lower rates.

Compared to June 30, 2024, period-end deposit balances increased $339.4 million, or 5%. The increase in total deposits was primarily driven by increases of $192.4 million in retail certificates of deposit, $58.4 million in money market deposits, and $58.1 million in non-interest bearing deposits. These were partially offset by a decrease of $24.6 million in interest-bearing demand accounts. The increase in retail certificates of deposits was driven by special promotional rate offerings over the past year.

The percentages of retail deposit balances and commercial deposit balances of the total deposit balance were 78% and 22%, respectively, at June 30, 2025, 76% and 24%, respectively, at March 31, 2025, and 78% and 22%, respectively, at June 30, 2024.

Uninsured deposits were 26%, 27%, and 30% of total deposits at June 30, 2025, at March 31, 2025, and at June 30, 2024, respectively. Uninsured amounts are based on the portion of customer account balances that exceeded the FDIC limit of $250,000. Peoples pledges investment securities against certain governmental deposit accounts, which collateralized $641.1 million, or 32%, $725.5 million, or 35%, and $748.3 million, or 38%, of the uninsured deposit balances at June 30, 2025, at March 31, 2025, and at June 30, 2024, respectively.

Average deposit balances during the second quarter of 2025 increased $16.8 million when compared to the linked quarter, and increased $342.3 million, or 5%, when compared to the second quarter of 2024. The increase over the linked quarter was driven by increases of $58.6 million in retail certificates of deposit, $47.5 million in non-interest bearing deposits, $30.0 million in governmental deposits, and $24.2 million in money market deposits, partially offset by a decrease of $145.4 million in brokered deposits. The increase when compared to the second quarter of 2024 was driven by increases of $254.8 million in retail certificates of deposit, $87.9 million in money market deposits, and $69.6 million in non-interest bearing deposits, partially offset by a decrease of $63.0 million in brokered deposits. Total demand deposit accounts comprised 34%, 34%, and 35% of total deposits at June 30, 2025, at March 31, 2025 and at June 30, 2024, respectively.

Stockholders' Equity:
Total stockholders' equity at June 30, 2025, increased $15.5 million, or 1%, compared to at March 31, 2025. This change was primarily driven by net income of $21.2 million and a decrease of $5.4 million in accumulated other comprehensive loss during the quarter, partially offset by dividends paid of $14.6 million. The decrease in accumulated other comprehensive loss was the result of the changes in the market value of available-for-sale investment securities during the period.

Total stockholders' equity at June 30, 2025, increased $41.8 million, or 4%, compared to at December 31, 2024, which was due to net income of $45.5 million in the first six months of 2025 and a decrease of $20.1 million in accumulated other comprehensive loss, partially offset by dividends paid of $28.8 million.

Total stockholders' equity at June 30, 2025, increased $75.5 million, or 7%, compared to at June 30, 2024, which was due to net income of $104.2 million for the last twelve months and a decrease in other comprehensive loss of $19.9 million, partially offset by dividends paid of $57.2 million.

Peoples Bancorp Inc. ("Peoples", Nasdaq: PEBO) is a diversified financial services holding company and makes available a complete line of banking, trust and investment, insurance and premium financing solutions through its subsidiaries. Headquartered in Marietta, Ohio, since 1902, Peoples has established a heritage of financial stability, growth and community impact. Peoples had $9.5 billion in total assets as of June 30, 2025, and 145 locations, including 127 full-service bank branches in Ohio, West Virginia, Kentucky, Virginia, Washington D.C., and Maryland. Peoples' vision is to be the Best Community Bank in America.

Peoples is a member of the Russell 3000 index of United States ("U.S.") publicly-traded companies. Peoples offers services through Peoples Bank (which includes the divisions of Peoples Investment Services, Peoples Premium Finance and North Star Leasing), Peoples Insurance Agency, LLC, and Vantage Financial, LLC.

Conference Call to Discuss Earnings:
Peoples will conduct a facilitated conference call to discuss second quarter 2025 results of operations on July 22, 2025, at 11:00 a.m., Eastern Time, with members of Peoples' executive management participating. Analysts, media and individual investors are invited to participate in the conference call by calling (866) 890-9285. A simultaneous webcast of the conference call audio and earnings conference call presentation will be available online via the "Investor Relations" section of Peoples' website, www.peoplesbancorp.com. Participants are encouraged to call or sign in at least 15 minutes prior to the scheduled conference call time to ensure participation and, if required, to download and install the necessary software. A replay of the call will be available on Peoples' website in the "Investor Relations" section for one year.

Use of Non-US GAAP Financial Measures:
This news release contains financial information and performance measures determined by methods other than those in accordance with accounting principles generally accepted in the United States of America ("US GAAP"). Management uses these "non-US GAAP" financial measures in its analysis of Peoples' performance and the efficiency of its operations. Management believes that these non-US GAAP financial measures provide a greater understanding of ongoing operations and enhance comparability of results with prior periods and peers. These disclosures should not be viewed as substitutes for financial measures determined in accordance with US GAAP, nor are they necessarily comparable to non-US GAAP performance measures that may be presented by other companies. Below is a listing of the non-US GAAP financial measures used in this news release:

• Core non-interest expense is a non-US GAAP financial measure since it excludes the impact of acquisition-related expense.
• The efficiency ratio is calculated 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 net gains and losses. This ratio is 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.
• Tangible assets, tangible equity, the tangible equity to tangible assets ratio and tangible book value per common share are non-US GAAP financial measures since they exclude the impact of goodwill and other intangible assets acquired through acquisitions on both total stockholders' equity and total assets.
• Total non-interest income, excluding net gains and losses, is a non-US GAAP financial measure since it excludes all gains and losses included in earnings.
• Pre-provision net revenue is defined as net interest income plus total non-interest income, excluding net gains and losses, minus total non-interest expense. This measure is a non-US GAAP financial measure since it excludes the provision for (recovery of) credit losses and all gains and losses included in net income.
• Return on average tangible equity is calculated as annualized net income (less the after-tax impact of amortization of other intangible assets) divided by average tangible equity. This measure is a non-US GAAP financial measure since it excludes the after-tax impact of amortization of other intangible assets from net income and the impact of average goodwill and other average intangible assets acquired through acquisitions on average stockholders' equity.

A reconciliation of these non-US GAAP financial measures to the most directly comparable US GAAP financial measures is included at the end of this news release under the caption of "Non-US GAAP Financial Measures (Unaudited)."

Safe Harbor Statement:
Certain statements made in this news release regarding Peoples' financial condition, results of operations, plans, objectives, future performance and business, are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. These forward-looking statements are identified by the fact they are not historical facts and include words such as "anticipate," "estimate," "may," "feel," "expect," "believe," "plan," "will," "will likely," "would," "should," "could," "project," "goal," "target," "potential," "seek," "intend," "continue," "remain," and similar expressions.

These forward-looking statements reflect management's current expectations based on all information available to management and its knowledge of Peoples' business and operations. Additionally, Peoples' financial condition, results of operations, plans, objectives, future performance and business are subject to risks and uncertainties that may cause actual results to differ materially. These factors include, but are not limited to:

As required by U.S. GAAP, Peoples is required to evaluate the impact of subsequent events through the issuance date of its June 30, 2025 consolidated financial statements as part of its Quarterly Report on Form 10-Q to be filed with the SEC. Accordingly, subsequent events could occur that may cause Peoples to update its critical accounting estimates and/or to revise its financial information from the estimates and information contained in this news release.

NON-US GAAP FINANCIAL MEASURES (Unaudited)

The following non-US GAAP financial measures used by Peoples provide information useful to investors in understanding Peoples' operating performance and trends, and facilitate comparisons with the performance of Peoples' peers. The following tables summarize the non-US GAAP financial measures derived from amounts reported in Peoples' consolidated financial statements:

SOURCE Peoples Bancorp Inc.