Risk Factors Update Summary

• The addition of exposure to specific bank failures in 2023, including Silicon Valley Bank, could impact Peoples' operations.
• The FDIC implemented a special assessment to recover losses, impacting uninsured depositors following bank failures, with an annual rate of approximately 13.4 basis points.
• Peoples' investment portfolio now includes a limited amount of bank-issued trust preferred securities.
• Peoples had eleven effective interest rate swaps with a total notional value of $105 million, down from thirteen swaps with a total notional value of $125 million.
• Peoples' ability to complete acquisitions and integrate them could negatively impact business, earnings, and financial condition.
• Changes in tax laws could adversely affect Peoples' performance and result in impairment losses.
• Peoples' termination value of derivative financial instruments decreased from $28 million to $19 million.
• Peoples' financial condition could be materially affected if assessments change or additional special assessments are imposed by the FDIC in the future.
• Peoples' financial condition could be materially affected by unexpected inability to obtain needed liquidity, impacting the trading price of common shares.
• The collateral posted with derivative counterparties decreased from $20 million to $12 million, with $2.5 million of investment securities pledged.