Peoples Bancorp Inc.

Climate Impact & Sustainability Data (2019, 2020, 2022)

Compliance with laws and regulations can be difficult and costly, and changes to laws and regulations often impose additional compliance costs.
The banking industry is highly regulated. Peoples is subject to supervision, regulation and examination by various federal and state regulators, including the Federal Reserve Board, the SEC, the CFPB, the FDIC, Financial Industry Regulatory Authority, Inc. (also known as FINRA), and various state regulatory agencies.
Failure to comply with laws and regulations, even if the failure was inadvertent or reflects a difference in interpretation, could subject Peoples to restrictions on business activities, fines, and other penalties, any of which could adversely affect results of operations, the capital base, and the price of Peoples’ common shares.
Noncompliance with the Bank Secrecy Act and other anti-money laundering statutes and regulations could cause Peoples a material financial loss.
Risks to Peoples’ systems result from a variety of factors, including the potential for bad acts on the part of hackers, criminals, employees or others.
Peoples’ necessary dependence upon automated systems to record and process Peoples’ transactions poses the risk that technical system flaws, employee errors, tampering or manipulation of those systems, or attacks by third parties will result in losses and may be difficult to detect.

Peoples has programs in place related to business continuity, disaster recovery and information security to maintain the confidentiality, integrity and availability of its operating systems, business applications and customer information.
Peoples has implemented security controls to prevent unauthorized access to the computer systems and requires its third-party service providers to maintain similar controls.
Peoples maintains specific "cyber" insurance coverage, which would apply in the event of various breach scenarios.
Peoples Bank has established policies and procedures that Peoples believes comply with the requirements of the USA Patriot Act.

Implemented a $15 minimum wage throughout the organization.
Provided time off with pay for employees who tested positive for COVID-19 or were caring for infected family members.

COVID-19 pandemic created disruptions throughout Peoples' primary market area, negatively impacting customers (businesses and individuals).
Uncertainty regarding the effectiveness and timing of vaccine rollout.

A portion of the workforce began working remotely.
Closed lobbies to appointment-only during times of heightened COVID-19 transmission.
Expanded cleaning and sanitization of office locations and provided employees with appropriate protective equipment.
Supported employees during the pandemic by providing paid time off without requiring use of accrued PTO.
Conducted scheduled calls with employees to discuss changes and solicit feedback on COVID-19 plans.
Encouraged sick employees to stay home.

Celebration of our 120th anniversary by delivering over 120 Acts of Kindness across our markets
Recipient of American Banker’s Best Banks to Work For award for second consecutive year
Top Workplaces USA recognized Peoples Bank as a Top Workplace in 2022, and...again in 2023
Over $700,000 in grants and scholarships were awarded by the Peoples Bank Foundation in 2022. Since 2018, the Peoples Bank Foundation has awarded over $3 million
Our associates...donated over $100,000 in 2022 out of their own paychecks to local food banks and food pantries across our footprint

Welcomed Kevin Reeves as a member of the Board of Directors in January 2022
In January 2023, we were fortunate to add Carol Schneeberger to our Board of Directors
In February 2023, George Broughton announced his plans to retire from the Board of Directors
In February of 2023, Doug Reynolds resigned from the Board of Directors
We also welcomed Dwight Smith as a member of the Board of Directors in February of 2023

Changes in economic and political conditions could adversely affect Peoples’ earnings and capital through declines in deposits, quality of investment securities, loan demand, the ability of Peoples’ borrowers to repay loans and the value of the collateral securing Peoples’ loans.
Changes in interest rates may adversely affect Peoples’ profitability.
Changes in market rates and economic conditions could cause the interest rate swaps Peoples Bank has entered into to become ineffective.
Instability in global economic conditions and geopolitical matters, as well as volatility in financial markets, could have a material adverse effect on Peoples’ results of operations and financial condition.
A transition away from the London Interbank Offered Rate (“LIBOR”) as a reference rate for financial instruments could negatively impact Peoples’ income and expenses, and the value of various financial instruments.
The economic impact of COVID-19 or any other pandemic could adversely affect Peoples’ business, financial condition, liquidity, and results of operations.

Peoples’ management uses various measures to monitor interest rate risk and believes it has implemented effective asset and liability management strategies to reduce the potential effects of changes in interest rates on Peoples’ results of operations.
Peoples’ management also periodically adjusts the mix of assets and liabilities to manage interest rate risk.
Peoples established a working group...to monitor developments relating to LIBOR changes and to guide the transition.
Peoples has implemented security controls to prevent unauthorized access to our computer systems, and Peoples requires that our third-party service providers maintain similar controls.