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Item 2. Management’s Discussion and Analysis

2026-07-30 compared with 2026-04-30 · 465 added, 260 removed, 883 unchanged (45% of the section changed)

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Management’s Discussion and Analysis (“MD&A”) represents an overview of the results of operations and financial condition of Peoples at and for the three months ended March 31, 2026 and March 31, 2025.

Management’s Discussion and Analysis (“MD&A”) represents an overview of the results of operations and financial condition of Peoples at and for the three and six months ended June 30, 2026 and June 30, 2025.

This MD&A should be read in conjunction with the Unaudited Condensed Consolidated Financial Statements and the Notes thereto.

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(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, including the pending merger with Citizens National Corporation (the "Citizens Merger"), and the expansion of commercial and consumer lending activities;

(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, including the pending merger with Citizens (the "Citizens merger"), 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;

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(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 avoid misappropriation of confidential information in connection with the delivery of 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;

(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) 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;

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

(25) 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 ongoing war on Ukraine, the continued U.S.

political and military presence in Venezuela, and the conflict in Iran (and the resulting disruptions in oil, energy and other commodity markets and supply chains);

(25) 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 and the ongoing conflicts in the Middle East);

(26) the potential deterioration of the U.S.

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(28) 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;

(29) Peoples' ability to integrate the pending Citizens merger, which may be unsuccessful, or may be more difficult, time-consuming or costly than expected;

(30) the risk that the proposed Citizens merger is not completed as a result of a failure to satisfy the conditions of the Citizens merger, including receipt of required regulatory, shareholder, and other approvals;

(31) the possibility that the anticipated benefits of the proposed Citizens merger, including expected revenue synergies and cost savings, will not be realized or will not be realized within expected time periods;

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

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(35) 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;

(33) the impact on Peoples of increased political and regulatory scrutiny of corporate environmental, social and governance ("ESG") practices;

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

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

(35) the risk that the proposed Citizens Merger is not completed as a result of a failure to satisfy the conditions to the Citizens Merger, including receipt of required regulatory, shareholder and other approvals;

(36) the possibility that the anticipated benefits of the proposed Citizens Merger, including expected revenue synergies and cost savings, will not be realized or will not be realized within expected time periods;

(37) Peoples' ability to integrate the Citizens Merger, which may be unsuccessful, or may be more difficult, time-consuming or costly than expected;

(38) the risk that energy tax credits purchased and used by People to reduce tax liabilities will be disallowed by the IRS;

(38) 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' 2025 Form 10-K and under the heading "Part II" of this Form 10-Q.

RISK FACTORS" of Peoples' 2025 Form 10-K as supplemented by the disclosures under the heading "ITEM 1A.

RISK FACTORS" of Peoples' Quarterly Report on Form 10-Q for the quarterly period ending March 31, 2026.

Peoples encourages readers of this Form 10-Q to understand forward-looking statements to be strategic objectives rather than absolute targets of future performance.

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Brokerage services are offered by Peoples exclusively through an unaffiliated registered broker-dealer located at Peoples Bank's offices.

Peoples Bank offers insurance premium finance lending nationwide through its Peoples Premium Finance and Peoples Life Premium Finance divisions.

Peoples Bank offers insurance premium finance lending nationwide through its Peoples Premium Finance division.

Peoples also offers lease financing through its North Star Leasing division and through Vantage, a subsidiary of Peoples Bank.

As of March 31, 2026, Peoples had 144 locations, including 127 full-service bank branches in Ohio, Kentucky, West Virginia, Virginia, Washington D.C.

As of June 30, 2026, Peoples had 144 locations, including 127 full-service bank branches in Ohio, Kentucky, West Virginia, Virginia, Washington D.C.

and Maryland.

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Note 1 of the Notes to the Unaudited Condensed Consolidated Financial Statements describes Peoples' significant accounting policies.

Management has identified the accounting policies that, due to the judgments, estimates and assumptions inherent in those policies, are critical to understanding Peoples’ Unaudited Condensed Consolidated Financial Statements, and this MD&A at March 31, 2026, which have been disclosed in Peoples' 2025 Form 10-K and updated as necessary in "Note 1 Summary of Significant Accounting Policies" in the Notes to the Unaudited Condensed Consolidated Financial Statements included in this Form 10-Q.

This MD&A should be read in conjunction with the policies disclosed in Peoples’ 2025 Form 10-K.

Management has identified the accounting

policies that, due to the judgments, estimates and assumptions inherent in those policies, are critical to understanding Peoples’ Unaudited Condensed Consolidated Financial Statements, and this MD&A at June 30, 2026, which have been disclosed in Peoples' 2025 Form 10-K and updated as necessary in "Note 1 Summary of Significant Accounting Policies" in the Notes to the Unaudited Condensed Consolidated Financial Statements included in this Form 10-Q.

This MD&A should be read in conjunction with those accounting policies.

New Accounting Guidance Pending Adoption

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Purchased Loans:

The FASB issued an Accounting Standards Update (“ASU”) 2025-08 on November 12, 2025.

The amendments “expand the population of acquired financial assets subject to the gross-up approach in Topic 326.” Specifically, the ASU expands the scope to include purchased “seasoned” loans, which are evaluated after purchase credit deteriorated (“PCD”) loans have been identified.

These seasoned loans are defined as non-PCD loans that are obtained in a business combination accounted for using the acquisition method or non-PCD loans that are (i) obtained through a transfer that is not a business combination accounted for using the acquisition method or (ii) initially recognized through the consolidation of a variable interest entity.

The ASU applies to all public entities subject to the guidance in Topic 326, including public business entities, privates companies, and not-for-profit entities.

The FASB issued Accounting

Standards Update (“ASU”) 2025-08 on November 12, 2025.

The amendments “expand the population of acquired financial assets

subject to the gross-up approach in Topic 326.” Specifically, the ASU expands the scope to include purchased “seasoned” loans,

which are evaluated after purchase credit deteriorated (“PCD”) loans have been identified.

These seasoned loans are defined as non-PCD loans that are obtained in a business combination accounted for using the acquisition method or non-PCD loans that are (i)

obtained through a transfer that is not a business combination accounted for using the acquisition method or (ii) initially recognized

through the consolidation of a variable interest entity.

ASU 2025-08 applies to all public entities subject to the guidance in Topic 326, including public business entities, private companies, and not-for-profit entities.

The amendments in this update apply “prospectively to loans that are acquired on or after the initial application date.” The amendments in ASU 2025-08 are effective for all entities for fiscal years beginning after December 15, 2026 and interim periods within those annual reporting periods, with early adoption permitted.

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Under the terms of the agreement and plan of merger, Citizens will merge with and into Peoples, and Citizens Bank will subsequently merge with and into Peoples Bank, in a transaction valued at approximately $76.6 million.

◦ For the first quarter of 2026, Peoples recorded a provision for credit losses of $9.7 million, compared to a provision for credit losses of $8.1 million for the linked quarter and a provision for credit losses of $10.2 million for the first quarter of 2025.

The provision for credit losses for the first quarter of 2026 was primarily driven by net charge-offs and a deterioration in the macroeconomic forecasts used within the CECL model.

The provision for credits losses for the linked quarter was primarily driven by (i) net charge-offs, (ii) loan growth, and (iii) a slight deterioration in the economic forecasts used within the CECL model, partially offset by reductions in reserves for individually analyzed loans and leases.

The provision for credit losses for the first quarter of 2025 was primarily driven by net charge-offs.

◦ For the second quarter of 2026, Peoples recorded a provision for credit losses of $4.7 million, compared to a provision for credit losses of $9.7 million for the linked quarter and a provision for credit losses of $16.6 million for the second quarter of 2025.

The provision for credit losses for the second quarter of 2026 was driven by net charge-offs and an increase in individually-analyzed loans, offset by a reduction of balances within loan segments with higher loss rates.

The provision for credit losses for the linked quarter was primarily driven by net charge-offs and a deterioration in the macroeconomic forecasts used within the CECL model.

The provision 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, and (vi) loan growth.

For more information, please refer to the section titled "RESULTS OF OPERATIONS - Provision for Credit Losses" found later in this MD&A.

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The Federal Reserve Board cut interest rates three times during 2025, further reducing the rate to 3.50% to 3.75%.

The Federal Reserve Board has signaled that future rate reductions continue to be a possibility.

The Federal Reserve Board will remain data dependent on future rate changes.

The impact of these transactions and events, where material, is discussed in the applicable sections of this MD&A.

EXECUTIVE SUMMARY

Peoples reported net income of $29.0 million for the first quarter of 2026, representing earnings per diluted common share of $0.81.

In comparison, Peoples reported net income of $31.8 million, representing earnings per diluted common share of $0.89, for the fourth quarter of 2025, and net income of $24.3 million, representing earnings per diluted common share of $0.68, for the first quarter of 2025.

Non-core items negatively impacted earnings per diluted common share by $0.01 for the first quarter of 2026, $0.04 for the fourth quarter of 2025, and $0.01 for the first quarter of 2025.

Net interest income was $90.4 million for the first quarter of 2026, a decrease of $0.6 million when compared to the linked quarter.

Net interest margin was 4.16% for the first quarter of 2026, compared to 4.12% for the linked quarter.

The decrease in net

interest income was primarily driven by a decrease in accretion income coupled with fewer days in the quarter compared to the linked quarter.

The increase in net interest margin was driven by a reduction in deposit costs.

Net interest income for the first quarter of 2026 increased $5.2 million, or 6%, compared to the first quarter of 2025.

Net interest margin increased 4 basis points when compared to the first quarter of 2025.

The increase in net interest income compared to the first quarter of 2025 was driven by lower deposit and borrowing costs.

Accretion income, net of amortization expense, was $1.3 million for the first quarter of 2026, $1.8 million for the fourth quarter of 2025 and $3.5 million for the first quarter of 2025, which added 6 basis points, 8 basis points and 17 basis points, respectively, to net interest margin.

The decrease in accretion income for the first quarter of 2026 when compared to the first quarter of 2025 was driven by less accretion recognized in the current period from the 2023 merger with Limestone Bancorp, Inc.

("Limestone Merger").

The provision for credit losses was $9.7 million for the first quarter of 2026, compared to a provision for credit losses of $8.1 million for the linked quarter and a provision for credit losses of $10.2 million for the first quarter of 2025.

The provision for credit losses for the first quarter of 2026 was primarily driven by net charge-offs and a deterioration in the economic forecasts used within the CECL model.

The provision for credit losses for the first quarter of 2025 was primarily driven by net charge-offs.

Net charge-offs for the first quarter of 2026 were $6.6 million, or 0.40% of average total loans annualized, compared to net charge-offs of $7.4 million, or 0.44% of average total loans annualized, for the linked quarter and net charge-offs of $8.1 million, or 0.52% of average total loans annualized, for the first quarter of 2025.

Peoples reported net income of $28.0 million for the second quarter of 2026, representing earnings per diluted common share of $0.78.

In comparison, Peoples reported net income of $29.0 million, representing earnings per diluted common share of $0.81, for the first quarter of 2026, and net income of $21.2 million, representing earnings per diluted common share of $0.59, for the second quarter of 2025.

Non-core items, which includes one-time losses and expenses, negatively impacted earnings per diluted common share by $0.18 for the second quarter of 2026, $0.01 for the first quarter of 2026, and $0.01 for the second quarter of 2025.

For the six months ended June 30, 2026, Peoples recorded net income of $57.0 million, or $1.59 per diluted common share, compared to $45.5 million, or $1.28 per diluted common share, for the six months ended June 30, 2025.

Net interest income was $92.7 million for the second quarter of 2026, and increased $2.3 million, or 3%, when compared to the linked quarter.

Net interest margin was 4.23% for the second quarter of 2026, compared to 4.16% for the linked quarter.

in net interest income and net interest margin was primarily driven by a reduction in deposit costs compared to the linked quarter.

Net interest income for the second quarter of 2026 increased $5.2 million, or 6%, compared to the second quarter of 2025.

Net interest margin for the second quarter of 2026 increased 8 basis points compared to 4.15% for the second quarter of 2025.

The increases in net interest income and net interest margin were primarily driven by lower deposit and borrowing costs compared to the second quarter of 2025.

For the first six months of 2026, net interest income increased $10.3 million compared to the same period of 2025, while net interest margin increased 6 basis points to 4.20%.

The increases in net interest income and net interest margin were driven by lower deposit costs and increased interest income compared to the first half of 2025.

Accretion income, net of amortization expense, was $1.1 million for the second quarter of 2026, $1.3 million for the first quarter of 2026 and $2.6 million for the second quarter of 2025, which added 5 basis points, 6 basis points and 12 basis points, respectively, to net interest margin.

The decrease in accretion income for the second quarter of 2026 when compared to the linked quarter and the second quarter of 2025 was driven by lower unamortized loan purchase discount balance in 2026 associated with the Limestone Bancorp Inc.

merger (the "Limestone Merger"), coupled with fewer related loan payoffs during the second quarter of 2026.

Accretion income, net of amortization expense, was $2.4 million and $6.1 million for the first six months of 2026 and 2025, respectively.

Accretion income added 6 basis points and 15 basis points to net interest margin for the first six months of 2026 and 2025, respectively.

The decrease in accretion income for the first six months of 2026 compared to the same period in 2025 was due to lower unamortized loan purchase discount balance in 2026 from the Limestone Merger.

The provision for credit losses was $4.7 million for the second quarter of 2026, compared to a provision for credit losses of $9.7 million for the linked quarter and a provision for credit losses of $16.6 million for the second quarter of 2025.

The provision for credit losses for the second quarter of 2026 was primarily driven by net charge-offs and an increase in individually-analyzed loans, partially offset by a reduction in balances of loan segments with higher loss rates.

The provision for credit losses for the linked quarter was primarily driven by net charge-offs and a deterioration in the economic forecasts used within the CECL model.

Net charge-offs for the second quarter of 2026 were $5.2 million, or 0.31% of average total loans annualized, compared to net charge-offs of $6.6 million, or 0.40% of average total loans annualized, for the linked quarter and net charge-offs of $7.0 million, or 0.43% of average total loans annualized, for the second quarter of 2025.

For additional information on credit trends and the allowance for credit losses, see the "FINANCIAL CONDITION - Allowance for Credit Losses" section below.

The provision for credit losses for the first six months of 2026 was $14.4 million, compared to a provision for credit losses of $26.8 million for the first six months of 2025.

The provision for credit losses during the first six months of 2026 was mainly a result of net charge-offs, a deterioration in the macro-economic conditions used within the CECL model, and an increase in individually-analyzed loans.

The provision for credit losses for 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, and (vi) loan growth.

Net charge-offs for the first six months of 2026 were $11.8 million, or 0.35% of average total loans and leases annualized, compared to net charge-offs of $15.1 million, or 0.48% annualized, for the first six months of 2025.

For additional information on credit trends and the allowance for credit losses, see the "FINANCIAL CONDITION - Allowance for Credit Losses" section below.

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 Operations.

The net loss realized during the first quarter of 2026 was $0.4 million, compared to a net loss of $2.0 million for the linked quarter and a net loss of $0.4 million for the first quarter of 2025.

The net losses for the first quarter of 2026 and for the first quarter of 2025 were driven by losses on repossessed assets.

The net loss for the linked quarter was driven by a $0.9 million net loss on the sale of an OREO property and a $0.8 million loss on the redemption of subordinated debt.

Total non-interest income, excluding net gains and losses, for the first quarter of 2026 increased $0.4 million compared to the linked quarter.

The increase in non-interest income, excluding net gains and losses, was primarily impacted by an increase of $1.1 million in insurance income, driven by annual performance-based commissions typically received in the first quarter of each year, partially offset by a decrease of $0.4 million in electronic banking income and $0.4 million in deposit account service charges, which are seasonally higher in the fourth quarter of each year.

Compared to the first quarter of 2025, total non-interest income, excluding net gains and losses, increased $1.2 million, due to an increase of $1.1 million in lease income, driven by an increase in operating lease income, and an increase of $0.5 million in trust and investment income, which was driven by an increase in assets under administration and management, partially offset by a decrease of $0.5 million in insurance income, driven by lower annual performance-based commissions.

Total non-interest expense increased $0.3 million for the three months ended March 31, 2026, compared to the linked quarter.

The increase in total non-interest expense was primarily due to increases of $0.7 million in salaries and employee benefit costs, driven by up-front expense on stock grants to retirement-eligible employees and employer health savings account contributions, $0.3 million in operating lease expense, and $0.2 million in net occupancy and equipment expense.

These increases were partially offset by decreases of $0.5 million in amortization of other intangible assets and $0.4 million in professional fees, driven by lower legal expenses.

Compared to the first quarter of 2025, total non-interest expense increased $0.8 million, or 1%.

The increase in total non-interest expense was primarily driven by increases of $0.8 million in operating lease expense, $0.6 million in net occupancy and equipment expense, driven by higher property taxes, and $0.5 million in data processing and software expense, due to costs associated with recent technology projects, partially offset by a decreases of $0.5 million in amortization of other intangible assets and $0.5 million in other non-interest expense, driven by lower corporate expenses.

The efficiency ratio for the first quarter of 2026 was 58.6%, compared to 57.8% for the linked quarter and 60.7% for the first quarter of 2025.

The efficiency ratio increased slightly compared to the linked quarter mainly as the result of higher non-interest expense, driven by increased salaries and employee benefits costs.

Peoples recorded income tax expense of $8.3 million with an effective tax rate of 22.3% for the first quarter of 2026, compared to income tax expense of $6.2 million with an effective tax rate of 16.4% for the linked quarter, and income tax expense of $7.0 million with an effective tax rate of 22.4% for the first quarter of 2025.

T he increase in income tax expense and the effective tax rate when compared to the linked quarter was impacted by updates to state apportionment in the fourth quarter of 2025, reducing expense by $0.9 million, and a $0.7 million benefit relating to tax credits purchased in the linked quarter.

The increase in income tax expense when compared to the quarter ended March 31, 2025 was driven by higher pretax income.

Total assets were $9.65 billion as of March 31, 2026, $9.65 billion at December 31, 2025, and $9.25 billion at March 31, 2025.

Total assets at March 31, 2026 remained flat when compared to at December 31, 2025 due to an increase in total loan and leases

largely offset by a decrease in total investment securities.

Total assets at March 31, 2026 increased compared to at March 31, 2025 due to increases of $341.7 million in total loans and leases and $83.1 million in total investment securities.

Total liabilities were $8.43 billion at March 31, 2026, down slightly from $8.44 billion at December 31, 2025, and up from $8.11 billion at March 31, 2025.

The decrease in total liabilities when compared to at December 31, 2025 was primarily due to a decrease of $24.4 million in short-term borrowings and a decrease of $18.7 million in long-term borrowings, partially offset by an increase of $38.2 million in period-end total deposits.

The increase in total liabilities when compared to at March 31, 2025 was primarily due increases of $486.6 million in short-term borrowings, partially offset by a decrease of $86.3 million in period-end deposits.

The decrease in total deposits was primarily driven by a decrease of $196.4 million in brokered deposits, partially offset by increases of $60.2 million in non-interest bearing deposits, $24.7 million in interest-bearing demand accounts, and $24.0 million in savings accounts.

Total stockholders' equity at March 31, 2026 increased $9.4 million compared to at December 31, 2025, which was primarily due to net income for the quarter of $29.0 million, partially offset by dividends paid of $14.7 million and an increase of $5.4 million in accumulated other comprehensive loss.

Accumulated unrealized losses related to the available-for-sale investment securities portfolio were $76.4 million and $71.0 million at March 31, 2026 and at December 31, 2025, respectively.

Total stockholders' equity at March 31, 2026 increased by $78.2 million compared to at March 31, 2025 and was impacted by net income of $111.4 million in the last twelve months and a decrease in accumulated other comprehensive loss of $19.6 million, partially offset by dividends paid of $58.6 million.

The net loss realized during the second quarter of 2026 was $8.6 million, compared to a net loss of $0.4 million for the linked quarter and a net loss of $0.3 million for the second quarter of 2025.

The net loss for the second quarter of 2026 was driven by the sale of $135.2 million of available-for-sale securities at a net loss of $8.2 million as Peoples manages its balance sheet under $10 billion in assets ahead of the pending Citizens merger.

The net losses for the first quarter of 2026 and for the second quarter of 2025 were due to losses on repossessed assets.

For the six months ended June 30, 2026, the total net loss was $9.0 million, compared to $0.6 million for the same period in 2025.

The net loss for the first six months of 2026 was primarily driven by the aforementioned investment portfolio restructure in the second quarter.

The net loss recognized in the first six months of 2025 was primarily driven by $0.6 million of net losses on repossessed assets.

Total non-interest income, excluding net gains and losses, for the second quarter of 2026 increased $0.3 million compared to the linked quarter.

The increase in non-interest income, excluding net gains and losses, was primarily impacted by increases of $0.6 million in electronic banking income, driven by debit card interchange, $0.4 million in lease income, driven by an increase in month-to-month income, $0.4 million in trust and investment income, and $0.2 million in mortgage banking income.

Partially offsetting those increases was a decrease of $1.2 million in insurance income due to performance-based commissions recognized in the first quarter of each year.

Compared to the second quarter of 2025, total non-interest income, excluding net gains and losses, increased $1.8 million, due to increases of $0.8 million in lease income, driven by higher operating lease income, $0.7 million in trust and investment income, driven by an increase in assets under administration and management, $0.4 million in deposit account services charges, and $0.4 million in mortgage banking income, partially offset by a decrease of $0.6 million in other non-interest income, driven by lower swap fee income.

For the first six months of 2026, total non-interest income, excluding gains and losses, increased $3.0 million, or 6%, compared to the first six months of 2025.

The increase was primarily due to increases of $1.9 million in lease income, driven by operating lease income, $1.2 million in trust and investment income, driven by an increase in assets under administration and management, and $0.7

million in deposit account service charges, partially offset by a decrease of $0.8 million in other non-interest income, driven by lower swap fee income.

Total non-interest expense increased $1.1 million for the three months ended June 30, 2026, compared to the linked quarter.

The increase was primarily due to increases of $1.3 million in professional fees, driven by higher legal expenses and professional services and $0.3 million in data processing and software expense, which were partially offset with a decrease of $0.5 million in net occupancy and equipment expense, driven by lower utility costs.

Compared to the second quarter of 2025, total non-interest expense increased $2.4 million, or 3%.

The increase in total non-interest expense was primarily driven by increases of $1.1 million in salaries and benefit costs due to higher sales levels and overall company performance measures used in calculating incentive awards, $0.7 million in operating lease expense, $0.5 million in data processing and software expense due to costs associated with recent technology projects, and $0.4 million in professional fees, partially offset by a decrease of $0.5 million in amortization of other intangible assets, driven by decreases in amortization on core deposits and customer relationship intangibles.

For the six months ended June 30, 2026, total non-interest expense increased $3.2 million, or 2%, compared to the first six months of 2025.

This increase was primarily driven by increases of $1.6 million in operating lease expense, $1.1 million in salaries and employee benefit costs due to annual merit increases and an increase in sales incentives, $1.0 million in data processing and software expenses, driven by recent technology projects, and $0.7 million in net occupancy and equipment expense, partially offset by a decrease of $1.0 million in amortization of other intangible assets, due to decreases in amortization on core deposits and customer relationship intangibles.

Three Months Ended Six Months Ended

June 30, March 31, June 30, June 30,

(Dollars in thousands) 2026 2026 2025 2026 2025

Non-interest expense:

Salaries and employee benefit costs $ 40,012 $ 39,835 $ 38,893 $ 79,847 $ 78,714

Data processing and software expense 7,850 7,536 7,356 15,386 14,361

Net occupancy and equipment expense 5,765 6,224 5,690 11,989 11,302

Professional fees 4,018 2,753 3,610 6,771 6,697

Electronic banking expense 2,225 2,081 2,018 4,306 4,043

Operating lease expense 1,797 1,804 1,053 3,601 2,038

Amortization of other intangible assets 1,697 1,697 2,211 3,394 4,424

FDIC insurance premiums 1,370 1,410 1,251 2,780 2,502

Other loan expenses 1,278 1,123 1,213 2,401 2,332

Franchise tax expense 972 1,004 678 1,976 1,607

Travel and entertainment expense 726 583 713 1,309 1,213

Communication expense 605 589 712 1,194 1,446

Marketing expense 604 886 718 1,490 1,621

Other non-interest expense 3,840 4,110 4,246 7,950 8,849

Total non-interest expense 72,759 71,635 70,362 144,394 141,149

Acquisition-related non-interest expense:

Net occupancy and equipment expense — 1 — 1 —

Professional fees 338 15 — 353 —

Marketing expense 52 — — 52 —

Travel and entertainment expense 10 — — 10 —

Other non-interest expense 10 — — 10 —

Total acquisition-related non-interest expense 410 16 — 426 —

Non-interest expense excluding acquisition-related expense:

Salaries and employee benefit costs 40,012 39,835 38,893 79,847 78,714

Data processing and software expense 7,850 7,536 7,356 15,386 14,361

Net occupancy and equipment expense 5,765 6,223 5,690 11,988 11,302

Professional fees 3,680 2,738 3,610 6,418 6,697

Electronic banking expense 2,225 2,081 2,018 4,306 4,043

Operating lease expense 1,797 1,804 1,053 3,601 2,038

Amortization of other intangible assets 1,697 1,697 2,211 3,394 4,424

FDIC insurance premiums 1,370 1,410 1,251 2,780 2,502

Other loan expenses 1,278 1,123 1,213 2,401 2,332

Franchise tax expense 972 1,004 678 1,976 1,607

Travel and entertainment expense 716 583 713 1,299 1,213

Communication expense 605 589 712 1,194 1,446

Marketing expense 552 886 718 1,438 1,621

Other non-interest expense 3,830 4,110 4,246 7,940 8,849

Total non-interest expense excluding acquisition-related expense $ 72,349 $ 71,619 $ 70,362 $ 143,968 $ 141,149

The efficiency ratio for the second quarter of 2026 was 58.3%, compared to 58.6% for the linked quarter and 59.3% for the second quarter of 2025.

The efficiency ratio improved slightly compared to the linked quarter mainly as the result of higher net interest income, driven by a reduction in deposit costs.

The efficiency ratio for the first six months of 2026 was 58.4%, compared to 60.0% for the first six months of 2025.

The efficiency ratio improved compared to the prior year first six months due to higher revenue.

The efficiency ratio adjusted for non-core items was 57.9% for the second quarter of 2026, compared to 58.6% for the linked quarter.

Peoples recorded income tax expense of $7.7 million with an effective tax rate of 21.6% for the second quarter of 2026, compared to income tax expense of $8.3 million with an effective tax rate of 22.3% for the linked quarter, and income tax expense of $6.2 million with an effective tax rate of 22.7% for the second quarter of 2025.

The decreases in income tax expense and the effective tax rate when compared to the linked quarter were impacted by a $0.5 million benefit relating to tax credit purchased in the second quarter of 2026.

Peoples' income tax expense for the first six months of 2026 was $16.0 million with an effective tax rate of 22.0%, compared to $13.3 million with an effective tax rate of 22.6% for the same period of 2025.

The increase in income tax expense when compared to June 30, 2025, was driven by higher pretax income.

The decrease in the effective tax rate when compared to June 30, 2025, was driven by the $0.5 million benefit relating to tax credits purchased in the second quarter of 2026.

Total assets were $9.54 billion as of June 30, 2026, $9.65 billion at March 31, 2026, $9.65 billion at December 31, 2025, and $9.54 billion at June 30, 2025.

Total assets at June 30, 2026 decreased when compared to at March 31, 2026 primarily due to a decrease of $144.0 million in total investment securities, partially offset by an increase of $51.4 million in period end total loans and leases, compared to at March 31, 2026.

Total assets at June 30, 2026 decreased compared to at December 31, 2025 due to a decrease of $158.4 million in total investment securities, partially offset by an increase of $62.2 million in total loans and leases.

Total assets at June 30, 2026 decreased slightly compared to at June 30, 2025 due to decreases of $201.6 million in total investment securities and $6.4 million in total cash and cash equivalents, partially offset by an increase of $216.6 million in total loans and leases.

The decrease in investment securities to all prior periods was driven by the sale of $135.2 million in available-for-sale securities as part of a portfolio restructure in advance of the pending Citizens Merger.

Total liabilities were $8.30 billion at June 30, 2026, down from $8.43 billion at March 31, 2026, $8.44 billion at December 31, 2025, and $8.39 billion at June 30, 2025.

The decrease in total liabilities when compared to at March 31, 2026 was primarily due to a decrease of $192.1 million in period-end total deposits, partially offset by an increase of $82.8 million in short-term borrowings.

Total liabilities decreased compared to at December 31, 2025 due to a decrease of $153.9 million in period end deposits.

The decrease was driven by decreases in brokered deposits and retail certificate of deposits, partially offset by increases in money market deposit accounts and non-interest bearing deposits.

The decrease in total liabilities when compared to at June 30, 2025 was primarily due to decreases of $180.8 million and $76.1 million in period-end deposits and long-term borrowings, respectively, partially offset by an increase of $191.8 million in short-term borrowings.

The decrease in total deposits was primarily driven by a decrease of $217.2 million in brokered deposits and $129.3 million in retail certificates of deposit, partially offset by increases of $67.9 million in money market deposit accounts, $63.0 million in non-interest bearing deposits, $36.0 million in interest-bearing demand accounts, and $25.6 million in savings accounts.

Total stockholders' equity at June 30, 2026 increased $20.5 million compared to at March 31, 2026, which was primarily due to net income for the quarter of $28.0 million and a decrease of $5.2 million in accumulated other comprehensive loss, partially offset by dividends paid of $15.1 million.

Accumulated unrealized losses related to the available-for-sale investment securities portfolio were $71.2 million and $76.4 million at June 30, 2026 and at March 31, 2026, respectively.

Total stockholders' equity at June 30, 2026 increased $29.9 million, or 2%, compared to at December 31, 2025, which was due to net income of $57.0 million in the first six months of 2026, partially offset by dividends paid of $29.8 million.

Total stockholders' equity at June 30, 2026 increased by $83.2 million compared to at June 30, 2025 and was impacted by net income of $118.2 million in the last twelve months and a decrease in accumulated other comprehensive loss of $19.4 million, partially offset by dividends paid of $59.0 million.

RESULTS OF OPERATIONS

5 unchanged sentences

The following table details the calculation of FTE net interest income:

Three Months Ended

2026 December 31,

Three Months Ended Six Months Ended

2026 March 31,

2026 June 30,

2025 June 30,

(Dollars in thousands) 2026 2025

4 unchanged sentences

For the Three Months Ended

March 31, 2026 December 31, 2025 March 31, 2025

June 30, 2026 March 31, 2026 June 30, 2025

( Dollars in thousands)

51 unchanged sentences

Net interest margin (b) 4.23 % 4.16 % 4.15 %

For the Six Months Ended

June 30, 2026 June 30, 2025

( Dollars in thousands)

Average Balance Income/ Expense Yield/Cost Average Balance Income/ Expense Yield/Cost

Short-term investments $ 97,882 $ 1,874 3.86 % $ 87,780 $ 1,938 4.45 %

Investment securities (a)(b):

Taxable 1,779,929 32,734 3.68 % 1,726,366 30,965 3.59 %

Nontaxable 144,795 1,957 2.70 % 177,631 2,441 2.75 %

Total investment securities 1,924,724 34,691 3.61 % 1,903,997 33,406 3.51 %

Loans (b)(c):

Construction 286,380 9,574 6.65 % 324,325 11,507 7.06 %

Commercial real estate, other 2,228,369 68,630 6.13 % 2,090,163 66,693 6.35 %

Commercial and industrial 1,604,089 50,936 6.32 % 1,331,026 46,635 6.97 %

Premium finance 241,251 9,706 8.00 % 263,290 11,328 8.56 %

Leases 354,251 16,758 9.41 % 389,646 20,485 10.46 %

Residential real estate (d) 950,769 25,975 5.46 % 965,176 24,440 5.06 %

Home equity lines of credit 262,249 9,088 6.99 % 236,543 8,922 7.61 %

Consumer, indirect 699,430 22,615 6.52 % 680,415 21,586 6.40 %

Consumer, direct 128,174 5,020 7.90 % 118,623 4,572 7.77 %

Total loans 6,754,962 218,302 6.45 % 6,399,207 216,168 6.74 %

Allowance for credit losses

(76,706) (64,129)

Net loans 6,678,256 218,302 6.52 % 6,335,078 216,168 6.81 %

Total earning assets 8,700,862 254,867 5.85 % 8,326,855 251,512 6.03 %

Goodwill and other intangible assets 391,617 400,135

Other assets 501,197 517,505

$ 9,593,676 $ 9,244,495

Interest-bearing deposits:

Savings accounts $ 910,412 $ 365 0.08 % $ 884,282 $ 437 0.10 %

Governmental deposit accounts

800,507 8,074 2.03 % 796,885 9,526 2.41 %

Interest-bearing demand accounts

1,073,821 1,175 0.22 % 1,079,921 1,086 0.20 %

Money market accounts 948,201 9,518 2.02 % 926,264 10,884 2.37 %

Retail CDs 1,945,210 31,814 3.30 % 1,968,840 36,669 3.76 %

Brokered CDs (e) 269,336 5,335 3.99 % 491,567 10,440 4.28 %

Total interest-bearing deposits

5,947,487 56,281 1.91 % 6,147,759 69,042 2.26 %

Borrowed funds:

Short-term FHLB advances (e) 399,696 7,432 3.75 % 60,392 1,357 4.53 %

Repurchase agreements and other 122,801 2,150 3.50 % 31,944 539 3.37 %

Total short-term borrowings 522,497 9,582 3.69 % 92,336 1,896 4.13 %

Long-term FHLB advances 112,454 2,234 4.00 % 131,697 2,617 4.01 %

Long-term notes payable 42,038 1,505 7.16 % 48,720 1,750 7.18 %

Other long-term borrowings (f) 31,967 1,651 10.27 % 55,125 2,812 10.15 %

Total long-term borrowings 186,459 5,390 5.79 % 235,542 7,179 6.10 %

Total borrowed funds 708,956 14,972 4.24 % 327,878 9,075 5.55 %

Total interest-bearing liabilities

6,656,443 71,253 2.16 % 6,475,637 78,117 2.43 %

Non-interest-bearing deposits 1,618,080 1,522,851

Other liabilities 95,846 110,883

Total liabilities 8,370,369 8,109,371

Total stockholders’ equity 1,223,307 1,135,124

Total liabilities and stockholders’ equity $ 9,593,676 $ 9,244,495

Interest rate spread (b) $ 183,614 3.69 % $ 173,395 3.60 %

Net interest margin (b) 4.20 % 4.14 %

(a) Average balances are based on carrying value.

6 unchanged sentences

(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 CDs for the periods presented in which interest payments on FHLB advances or brokered CDs were being hedged.

(f) Included in other long-term borrowings are trust preferred securities and floating rate junior deferrable interest debentures.

(f) Included in other long-term borrowings are trust preferred securities and floating rate junior subordinated deferrable interest debentures.

The following table provides an analysis of the changes in FTE net interest income:

Three Months Ended March 31, 2026 Compared to

(Dollars in thousands) December 31, 2025 March 31, 2025

Three Months Ended June 30, 2026 Compared to

Six Months Ended June 30, 2026 Compared to

(Dollars in thousands) March 31, 2026 June 30, 2025 June 30, 2025

Increase (decrease) in:

1 unchanged sentence

Rate Volume Total (a)

INTEREST INCOME:

31 unchanged sentences

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

Net interest income was $90.4 million for the first quarter of 2026 a decrease of $0.6 million when compared to the linked quarter.

Net interest margin was 4.16% for the first quarter of 2026, compared to 4.12% for the linked quarter.

The decrease in net interest

income was primarily driven by a decrease in accretion income coupled with fewer days in the quarter compared to the linked quarter.

The increase in net interest margin was driven by a reduction in deposit costs.

Net interest income for the first quarter of 2026 increased $5.2 million, or 6%, compared to the first quarter of 2025.

Net interest margin increased 4 basis points when compared to the first quarter of 2025.

The increase in net interest income and net interest margin was primarily driven by lower deposit and borrowing costs.

Accretion income, net of amortization expense, was $1.3 million for the first quarter of 2026, $1.8 million for the linked quarter and $3.5 million for the first quarter of 2025, which added 6 basis points, 8 basis points and 17 basis points, respectively, to net interest margin.

The decrease in accretion income for the first quarter of 2026 when compared to the first quarter of 2025 was driven by less accretion recognized in the current period from the 2023 Limestone Merger.

Net interest income was $92.7 million for the second quarter of 2026 and increased $2.3 million when compared to the linked quarter.

Net interest margin was 4.23% for the second quarter of 2026, compared to 4.16% for the linked quarter.

The increase in net interest income and margin was primarily driven by a reduction in deposit costs.

Net interest income for the second quarter of 2026 increased $5.2 million, or 6%, compared to the second quarter of 2025.

Net interest margin increased 8 basis points when compared to the second quarter of 2025.

The increase in net interest income was primarily driven by lower deposit and borrowing costs.

For the first six months of 2026, net interest income increased $10.3 million compared to the first six months of 2025, while net interest margin increased 6 basis points to 4.20%.

The increases in net interest income and net interest margin was driven by lower deposit costs and increased interest income, respectively.

Accretion income, net of amortization expense, was $1.1 million for the second quarter of 2026, $1.3 million for the linked quarter and $2.6 million for the second quarter of 2025, which added 5 basis points, 6 basis points and 12 basis points, respectively, to net interest margin.

The decrease in accretion income for the second quarter of 2026 when compared to the linked quarter and the second quarter of 2025 was driven by less accretion income recognized from the Limestone Merger.

Accretion income, net of amortization expense, was $2.4 million and $6.1 million for the first six months of 2026 and 2025, respectively.

Accretion income added 6 basis points and 15 basis points to net interest margin for the first six months of 2026 and 2025, respectively.

The decrease in accretion income for the first six months of 2026 compared to the same period in 2025 was due to less accretion income recognized from the Limestone Merger.

Additional information regarding changes in the Unaudited Consolidated Balance Sheets can be found under appropriate captions of the “FINANCIAL CONDITION” section of this MD&A.

2 unchanged sentences

The following table details Peoples’ provision for credit losses:

Three Months Ended

2026 December 31,

Three Months Ended Six Months Ended

2026 March 31,

2026 June 30,

2025 June 30,

(Dollars in thousands) 2026 2025

3 unchanged sentences

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 for the first quarter of 2026 was primarily driven by net charge-offs and a deterioration in the economic forecasts used within the CECL model.

The provision for credit losses for the linked quarter of 2025 was primarily driven by (i) net charge-offs, (ii) loan growth, and (iii) a slight deterioration in the economic forecasts used within the CECL model, partially offset by reductions in reserves for individually analyzed loans and leases.

The provision for credit losses for the second quarter of 2026 was primarily driven by net charge-offs and an increase in individually-analyzed loans, partially offset by a reduction of balances within loan segments with higher loss rates.

The provision for credit losses for the linked quarter was primarily driven by net charge-offs and a deterioration in the economic forecasts used within the CECL model.

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, and (vi) loan growth.

For the first half of 2026, the provision for credit losses was mainly a result of net charge-offs, a deterioration in the economic forecasts used within the CECL model, and an increase in individually-analyzed loans.

For the same period of 2025, the provision for credit losses 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, and (vi) loan growth.

Additional information regarding changes in the allowance for credit losses and loan credit quality can be found later in this MD&A under the caption “FINANCIAL CONDITION - Allowance for Credit Losses.”

2 unchanged sentences

The following table details Peoples’ net losses for the periods presented:

Three Months Ended

2026 December 31,

Three Months Ended Six Months Ended

2026 March 31,

2026 June 30,

2025 June 30,

(Dollars in thousands) 2026 2025

Net (loss) gain on investment securities $ — $ (77) $ (2)

Net loss on investment securities $ (8,181) $ — $ — $ (8,181) $ (2)

Net loss on asset disposals and other transactions:

Net loss on other assets (453) (384) (267) (837) (597)

Net (loss) gain on OREO (26) (851) 20

Net loss on other transactions — (847) (51)

Net gain (loss) on OREO — (26) 10 (26) 30

Net gain (loss) on other transactions 7 — (23) 7 (74)

Net loss on asset disposals and other transactions $ (446) $ (410) $ (280) $ (856) $ (641)

The net loss on other assets for the first quarter of 2026 was driven by losses on repossessed assets.

The net losses for the linked quarter were primarily driven by a $0.9 million net loss on the sale of an OREO property and a $0.8 million loss on the redemption of subordinated debt.

The net loss on other assets reported for the first quarter of 2025 was driven by the losses recorded on repossessed assets.

The net loss on investment securities for the second quarter of 2026 was driven by the sale of $135.2 million available-for-sale investment securities.

The net loss on other assets for all periods presented was driven by losses recorded on repossessed assets.

Total Non-Interest Income, Excluding Net Gains and Losses

Total non-interest income, excluding net gains and losses, comprised 24% of Peoples' total revenues (defined as net interest income plus total non-interest income excluding net gains and losses) for the first quarter of 2026, consistent with the linked quarter and the first quarter of 2025.

For the first quarter of 2026, e-banking income comprised the largest portion of Peoples' total non-interest income, excluding net gains and losses.

Total non-interest income, excluding net gains and losses, comprised 24% of Peoples' total revenues (defined as net interest income plus total non-interest income excluding net gains and losses) for the second quarter of 2026, 24% for the linked quarter, and 24% for the second quarter of 2025.

For the first six months of 2026, total non-interest income, excluding net gains and losses, totaled 24% of total revenue, consistent with the same period in 2025.

For the second quarter of 2026, e-banking income comprised the largest portion of Peoples' total non-interest income, excluding net gains and losses.

Peoples' e-banking services include ATM and debit cards, direct deposit services, internet and mobile banking, and remote deposit capture, and serve as alternative delivery channels to traditional sales offices for providing services to customers.

The following table details Peoples' e-banking income:

Three Months Ended

2026 December 31,

Three Months Ended Six Months Ended

2026 March 31,

2026 June 30,

2025 June 30,

(Dollars in thousands) 2026 2025

3 unchanged sentences

The following table details Peoples' insurance income:

Three Months Ended

2026 December 31,

Three Months Ended Six Months Ended

2026 March 31,

2026 June 30,

2025 June 30,

(Dollars in thousands) 2026 2025

4 unchanged sentences

Life and health insurance commissions

643 697 659 1,340 1,348

Insurance income $ 4,331 $ 5,580 $ 4,549 $ 9,911 $ 10,603

Peoples' insurance income for the first quarter of 2026 increased $1.1 million when compared to the linked quarter due to seasonal performance-based commissions paid in the first quarter of each year.

Insurance income for the first quarter of 2026 decreased $0.5 million when compared to the first quarter of 2025 due to lower commissions based on the performance of the policies written during 2025.

Peoples' insurance income for the second quarter of 2026 decreased when compared to the linked quarter which was driven by the annual performance-based commissions recognized in the first quarter of each year.

Insurance income for the second quarter and first six months of 2026 decreased when compared to the same periods of 2025 due to lower performance-based commissions.

Peoples' trust and investment income, which includes fiduciary income, brokerage income, and employee benefit fees, continued to be based primarily upon the value of assets under administration and management, with additional income generated from transaction commissions, cross-selling of products and additional retirement plan services business.

The following table details Peoples’ trust and investment income:

Three Months Ended

2026 December 31,

Three Months Ended Six Months Ended

2026 March 31,

2026 June 30,

2025 June 30,

(Dollars in thousands) 2026 2025

3 unchanged sentences

Trust and investment income $ 5,986 $ 5,605 $ 5,281 $ 11,591 $ 10,342

Brokerage income in the first quarter of 2026 remained flat when compared to the linked quarter and increased compared to the first quarter of 2025 which was driven by an increase in assets under administration and management.

Fiduciary income in the second quarter of 2026 increased when compared to the linked quarter and to the second quarter of 2025 and was driven by an increase in assets under administration and management.

Trust and investment income increased $1.2 million for the first six months of 2026 when compared to 2025, due to higher brokerage income, primarily reflecting the increase in assets under management.

The following table details Peoples' assets under administration and management:

2026 March 31,

2026 December 31,

1 unchanged sentence

2025 June 30,

2025 March 31,

(Dollars in thousands)

3 unchanged sentences

Quarterly average $ 4,315,129 $ 4,091,841 $ 4,065,195 $ 3,955,007 $ 3,736,778

The decrease in assets under administration and management at March 31, 2026 compared to at December 31, 2025 was driven by market value fluctuations.

The increase in assets under administration and management at March 31, 2026 when compared to at March 31, 2025 was primarily due to growth, as Peoples added new accounts and the underlying market values of assets under management grew.

The increase in assets under administration and management at June 30, 2026 compared to at March 31, 2026 was driven by market value fluctuations.

The increase in assets under administration and management at June 30, 2026 when compared to at June 30, 2025 was primarily due to growth, as Peoples added new accounts and the underlying market values of assets under management grew.

Deposit account service charges are based on the recovery of costs associated with services provided.

The following table details Peoples' deposit account service charges:

Three Months Ended

2026 December 31,

Three Months Ended Six Months Ended

2026 March 31,

2026 June 30,

2025 June 30,

(Dollars in thousands) 2026 2025

5 unchanged sentences

Management periodically evaluates its cost recovery fees to ensure they are reasonable based on operational costs and similar to fees charged in Peoples' markets by competitors.

Deposit account service charges decreased for the first quarter of 2026 compared to the linked quarter due to the seasonality of customer activity.

Deposit account service charges increased when comparing the first quarter of 2026 to the first quarter of 2025 due to higher maintenance fees driven by the volume of accounts.

Deposit account service charges increased for the second quarter of 2026 compared to both the linked quarter and second quarter of 2025.

For the first six months of 2026, total deposit account service charges increased by $0.7 million from the same period of 2025, driven by timing of customer activity.

The following table details the other items included within Peoples' total non-interest income:

Three Months Ended

2026 December 31,

Three Months Ended Six Months Ended

2026 March 31,

2026 June 30,

2025 June 30,

(Dollars in thousands) 2026 2025

Lease income 4,977 4,581 4,211 9,558 7,679

Other non-interest income 1,166 1,099 1,450

Bank owned life insurance income 1,189 1,162 1,112 2,351 2,245

Other non-interest income 893 1,166 1,456 2,059 2,906

Mortgage banking income 598 376 220 974 616

Lease income is primarily comprised of (i) operating lease income, (ii) gains on the early termination of leases, net of any associated purchase accounting adjustments, (iii) month-to-month lease payments beyond maturity of the net investment in the lease, net of any associated purchase accounting adjustment, (iv) fees received for referrals, (v) gains and losses recognized on the sales of residual assets, net of any purchase accounting impact, and (vi) syndication income.

Lease income for the first quarter of 2026

increased compared to the linked quarter due to operating lease income.

The increase when compared to the first quarter of 2025 was driven by increases in operating lease income and gains on early terminated Vantage leases.

Other non-interest income remained relatively flat for the first quarter of 2026 when compared to the linked quarter and decreased when compared to the first quarter of 2025 due to lower swap fee income which is driven by customer demand.

BOLI income for the first quarter of 2026 remained flat when compared to the linked quarter and to the prior year quarter.

Lease income for the second quarter of 2026

increased compared to the linked quarter due to an increase in month-to-month lease income.

The increase when compared to the second quarter of 2025 was driven by an increase in operating lease income, partially offset by a reduction in gains on terminated leases.

Lease income increased $1.9 million for the first six months of 2026 when compared to the same period of 2025 due to an increase in operating lease income.

BOLI income for the second quarter of 2026 remained flat when compared to the linked quarter and to the prior year quarter.

BOLI income increased slightly for the first six months of 2026 when compared to the same period of 2025 primarily due to changes in the cash surrender value of the underlying policies.

Other non-interest income decreased for the three months ended June 30, 2026 when compared to the linked quarter and when compared to the second quarter of 2025.

For the first six months of 2026, other non-interest income decreased by $0.8 million from the same period of 2025, primarily due to a decrease in swap fee income which is driven by customer demand.

Mortgage banking income is comprised mostly of net gains from the origination and sale of real estate loans in the secondary market, and, to a lesser extent, servicing income for loans sold with servicing retained.

As a result, the amount of income recognized by Peoples is largely dependent on customer demand and long-term interest rates for residential real estate loans offered in the secondary market.

Mortgage banking income for the first quarter of 2026 decreased when compared to the linked quarter and was primarily driven by the decreased volume in loans sold as more production was kept on the balance sheet relative to prior periods.

In the first quarter of 2026, Peoples sold $6.0 million in loans into the secondary market with servicing retained and $3.6 million in loans with servicing released, compared to $8.6 million and $8.7 million, respectively, in the fourth quarter of 2025, and $0.2 million and $4.7 million, respectively, in the first quarter of 2025.

Mortgage banking income for the second quarter of 2026 increased when compared to the linked quarter and the second quarter of 2025 and was primarily driven by the increased volume in loans sold.

Mortgage banking income increased for the first six months of 2026 when compared to the same period of 2025 due to higher production.

In the second quarter of 2026, Peoples sold $15.1 million in loans into the secondary market with servicing retained and $6.6 million in loans with servicing released, compared to $6.0 million and $3.6 million, respectively, in the first quarter of 2026, and $0.3 million and $10.3 million, respectively, in the second quarter of 2025.

For the first six months of 2026, Peoples sold $20.9 million in loans into the secondary market with servicing retained, and $10.2 million with servicing released, compared to $0.5 million and $10.3 million, respectively, for the same period of 2025.

Non-Interest Expense

1 unchanged sentence

The following table details Peoples' salaries and employee benefit costs:

Three Months Ended

2026 December 31,

Three Months Ended Six Months Ended

2026 March 31,

2026 June 30,

2025 June 30,

(Dollars in thousands) 2026 2025

9 unchanged sentences

Average during the period 1,447 1,457 1,462 1,454 1,478

Base salaries and wages for the first quarter of 2026 increased compared to the linked quarter and to the first quarter of 2025, primarily driven by annual merit increases.

Sales-based and incentive compensation decreased for the first quarter of 2026 compared to the linked quarter and the same period of 2025 and was driven by a decrease in corporate incentives.

The increase in employee benefits for the first quarter of 2026 compared to the linked quarter and to the first quarter of 2025 was primarily related to higher medical costs.

Payroll taxes and other employment costs for the first quarter of 2026 increased compared to the linked quarter due to the seasonal expenses recognized in the first quarter of each year.

Base salaries and wages for the second quarter of 2026 and the first six months of 2026 increased compared to the same periods in 2025, primarily driven by annual merit increases.

Sales-based and incentive compensation increased for the second quarter of 2026 compared to both the linked quarter and the second quarter of 2025 and was driven by an increase in corporate incentives.

Sales-based and incentive compensation increased for the first six months of 2026 when compared to same period in 2025, due to an increase in corporate incentives.

The decrease in employee benefits for the second quarter of 2026 compared to the linked quarter and second quarter of 2025 was primarily related to lower medical costs.

Employee benefits increased for the first six months of 2026 when compared to the same period for 2025 due to an adjustment related to prior period nonqualified deferred compensation expense.

Payroll taxes and other employment costs for the second quarter of 2026 decreased when compared to the linked quarter due to seasonal expenses recognized in the first quarter of each year.

Payroll taxes and other employment costs increased when compared to the second quarter of 2025, primarily driven by higher base salaries due to annual merit increases.

For the first six months of 2026, payroll taxes and other employment costs decreased slightly compared to the same period of 2025.

Stock-based compensation is generally recognized over the vesting period, which generally ranges from immediate vesting to vesting at the end of three years.

An adjustment is made at the vesting date to reverse expense relating to forfeitures for performance awards, and at the date of forfeiture to reverse expense for non-vested restricted common share awards.

Peoples estimates forfeitures at the grant date and revises those estimates in the subsequent periods if actual forfeitures differ from previous estimates.

Stock grants to retirement eligible grantees are expensed either immediately or over a shorter period than three years.

The majority of Peoples' stock-based compensation is attributable to annual equity-based incentive awards to employees, which are awarded in the first quarter of each year based upon Peoples achieving certain performance goals during the prior year, and are generally contingent on employment through the vesting period.

Stock-based compensation for the second quarter of 2026 decreased when compared to the linked quarter due to the expense attributable to the forfeiture rate true-up on stock vested coupled with up-front expense on stock grants to certain retirement-eligible employees recognized in the linked quarter.

Stock-based compensation for the first six months of 2026 decreased when compared to the first six months of 2025 due to less up-front expense on grants to certain retirement-eligible employees.

Deferred personnel costs represent the portion of current period salaries and employee benefit costs considered to be direct loan origination costs.

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As a result, the amount of deferred personnel costs for each period corresponds directly with the volume of loan originations, coupled with the average deferred costs per loan that are updated annually at the beginning of each year.

Deferred personnel costs for the first quarter of 2026 decreased when compared to the fourth quarter of 2025 and increased compared to the first quarter of 2025, which is driven by loan volume.

Deferred personnel costs for the second quarter of 2026 increased when compared to the first quarter of 2026 and was consistent with the second quarter of 2025.

Similarly, deferred personnel costs increased for the first six months of 2026 when compared to the first six months of 2025.

Peoples' net occupancy and equipment expense was comprised of the following:

Three Months Ended

2026 December 31,

Three Months Ended Six Months Ended

2026 March 31,

2026 June 30,

2025 June 30,

(Dollars in thousands) 2026 2025

4 unchanged sentences

Net occupancy and equipment expense $ 5,765 $ 6,224 $ 5,690 $ 11,989 $ 11,302

Net occupancy and equipment expense increased for the first quarter of 2026 compared to the linked quarter and the first quarter of 2025 due to increased property taxes.

Net occupancy and equipment expense decreased for the second quarter of 2026 compared to the linked quarter due to lower repair and maintenance costs.

Net occupancy and equipment expense for the first six months of 2026 increased when compared to the same period of the previous year due to an adjustment of property tax accruals resulting from a review of recent assessments.

The following table details the other items included in total non-interest expense:

Three Months Ended

2026 December 31,

Three Months Ended Six Months Ended

2026 March 31,

2026 June 30,

2025 June 30,

(Dollars in thousands) 2026 2025

1 unchanged sentence

Professional fees 4,018 2,753 3,610 6,771 6,697

Amortization of other intangible assets 1,697 2,210 2,213

E-banking expense 2,225 2,081 2,018 4,306 4,043

Operating lease expense 1,797 1,804 1,053 3,601 2,038

Amortization of other intangible assets 1,697 1,697 2,211 3,394 4,424

FDIC insurance premiums 1,370 1,410 1,251 2,780 2,502

Other loan expenses 1,278 1,123 1,213 2,401 2,332

Operating lease expense 1,804 1,513 985

Marketing expense 886 1,059 903

Franchise tax expense 972 1,004 678 1,976 1,607

Travel and entertainment expense 726 583 713 1,309 1,213

Communication expense 605 589 712 1,194 1,446

Franchise tax expense 1,004 845 929

Marketing expense 604 886 718 1,490 1,621

Other non-interest expense $ 3,840 $ 4,110 $ 4,246 $ 7,950 $ 8,849

Data processing and software expenses for the first quarter of 2026 increased compared to the linked quarter and same period in 2025 due to costs associated with recent technology projects.

Professional fees for the first quarter of 2026 decreased when compared to the linked quarter and same period of 2025 due to decreased legal expenses.

Amortization of other intangible assets for the first quarter of 2026 decreased $0.5 million compared to the linked quarter and to the prior year quarter due to decreases in amortization on core deposits and customer relationship intangibles.

Data processing and software expenses for the second quarter and the first six months of 2026 increased compared to the linked quarter and the same periods in 2025 due to costs associated with recent ongoing technology projects.

Professional fees for the second quarter of 2026 increased when compared to the linked quarter due to higher legal expenses and professional services.

Professional fees increased for the first six months of 2026 when compared to the same period in 2025 due to increased legal expenses.

Peoples' e-banking expense is comprised of costs associated with debit and ATM cards and is driven by the timing and volume of customer activity.

E-banking expense remained flat compared to both the linked quarter and the first quarter of 2025.

Peoples' FDIC insurance premiums for the first quarter of 2026 increased slightly due to an increase in average assets when compared to the linked quarter and the first quarter of 2025.

Other loan expenses during the first quarter of 2026 decreased slightly when compared to the linked quarter and remained flat when compared to the first quarter of 2025.

The decrease compared to the linked quarter was driven by decreased business loan filing fees.

Operating lease expense, which is the depreciation of operating lease assets, increased when compared to the linked quarter and the first quarter of 2025, driven by the increased volume of leases.

Marketing expense for the first quarter of 2026 decreased when compared to the linked quarter primarily driven by lower advertising expense.

Travel and entertainment expenses remained flat compared to the linked quarter and to the first quarter of 2025.

Communication expense remained flat for the first quarter of 2026 when compared to the linked quarter and decreased compared to the first quarter of 2025 due to branch-related costs.

E-banking expense for the second quarter and the first six months of 2026 increased when compared to the linked quarter and the same periods in 2025 due to customer activity.

Operating lease expense remained flat when compared to the linked quarter.

Operating lease expense increased for the second quarter and the first six months of 2026 when compared to the same periods in 2025 due to an increased volume of leases.

Amortization of other intangible assets for the second quarter of 2026 remained flat compared to the linked quarter and decreased $0.5 million compared to the prior year quarter due to decreases in amortization on core deposits and customer relationship intangibles.

Amortization of other intangible assets decreased for the first six months of 2026 when compared to 2025 due to decreases in amortization on core deposits and customer relationship intangibles.

Peoples' FDIC insurance premiums for the second quarter of 2026 remained relatively flat when compared to the linked quarter and increased when compared to the second quarter of 2025.

FDIC premiums increased for the first six months of 2026 when compared to 2025 driven by an increase in average assets.

Other loan expenses during the second quarter of 2026 increased slightly when compared to the linked quarter and to the second quarter of 2025.

Other loan expenses increased for the first six months of 2026 when compared to 2025 due to increased real estate loan expenses.

Peoples is subject to state franchise taxes, which are based largely on Peoples' equity, in the states where Peoples has a physical presence.

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The Ohio FIT is based on the total equity capital in proportion to the taxpayer's gross receipts in Ohio as of the most recent year-end.

The increase in franchise tax expense for the first quarter of 2026 compared to the linked quarter driven by increased rates.

Other non-interest expense for the first quarter of 2026 remained flat when compared to the linked quarter and decreased compared to the first quarter of 2025 primarily due to lower corporate expenses.

The increase in franchise tax expense for the second quarter of 2026 compared to the prior year quarter related to a one-time refund from the State of Ohio received in 2025.

Franchise tax expense increased slightly for the first six months of 2026 when compared to 2025.

Travel and entertainment expenses increased compared to the linked quarter and to the second quarter of 2025.

Travel and entertainment increased slightly for the first six months of 2026 when compared to 2025 due to timing of travel.

Communication expense remained flat for the second quarter of 2026 when compared to the linked quarter and decreased when compared to the same period of the prior year.

Communication expense decreased slightly for the first six months of 2026 when compared to 2025.

Marketing expense for the second quarter of 2026 decreased when compared to the linked quarter and the second quarter of 2025 primarily driven by a vendor incentive received in the second quarter of 2026.

Marketing expense decreased for the first six months of 2026 when compared to 2025 due to lower advertising expenses.

Other non-interest expense for the second quarter of 2026 decreased when compared to the linked quarter primarily due to lower check and ACH fraud.

Other non-interest expense decreased for the second quarter and the first six months of 2026 when compared to same periods in 2025 due to lower ACH fraud.

Income Tax Expense

Peoples recorded income tax expense of $8.3 million with an effective tax rate of 22.3% for the first quarter of 2026, compared to income tax expense of $6.2 million with an effective tax rate of 16.4% for the linked quarter and income tax expense of $7.0 million with an effective tax rate of 22.4% for the first quarter of 2025.

The increase in income tax expense and the effective tax rate when compared to the linked quarter was impacted by updates to state apportionment in the fourth quarter of 2025, reducing expense by $0.9 million, and a $0.7 million benefit relating to tax credits purchased in the linked quarter.

The increase in income tax expense when compared to March 31, 2025 was driven by higher pretax income.

Peoples recorded income tax expense of $7.7 million with an effective tax rate of 21.6% for the second quarter of 2026, compared to income tax expense of $8.3 million with an effective tax rate of 22.3% for the linked quarter and income tax expense of $6.2 million with an effective tax rate of 22.7% for the second quarter of 2025.

The decreases in income tax expense and the effective tax rate when compared to the linked quarter were impacted by a $0.5 million benefit relating to a tax credit.

The increase in income tax expense when compared to the second quarter of 2025 was driven by higher pre-tax income.

Peoples recorded income tax expense of $16.0 million and $13.3 million, through the first six months of 2026 and 2025, respectively.

The increase for the first six months of 2026 compared to 2025 was driven by higher pre-tax income.

Additional information regarding income taxes can be found in "Note 13 Income Taxes" of the Notes to the Consolidated Financial Statements included in Peoples' 2025 Form 10-K.

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The following table provides a reconciliation of this Non-US GAAP financial measure to the amounts reported in Peoples' Unaudited Condensed Consolidated Financial Statements for the periods presented:

Three Months Ended

2026 December 31,

Three Months Ended Six Months Ended

2026 March 31,

2026 June 30,

2025 June 30,

(Dollars in thousands) 2026 2025

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Pre-provision net revenue $ 48,974 $ 47,449 $ 44,375 $ 96,423 $ 86,305

The decrease in the PPNR for the first quarter of 2026 compared to the linked quarter was driven by a decrease in net interest income due to less days in the quarter compared to the linked quarter coupled with lower accretion income.

PPNR for the first quarter of 2026 increased compared to the first quarter of 2025, primarily due to higher net interest income, driven by lower borrowing and deposit costs.

The increase in the PPNR for the second quarter and the first six months of 2026 compared to all prior periods was driven by an increase in net interest income due to a reduction in deposit costs.

Core Non-Interest Expense (Non-US GAAP)

Core non-interest expense is a financial measure used to evaluate Peoples' recurring expense stream.

This measure is Non-US GAAP since it excludes the impact of all acquisition-related expenses.

The following table provides a reconciliation of this Non-US GAAP measure to the amounts reported in Peoples' Unaudited Condensed Consolidated Financial Statements for the periods presented:

Three Months Ended Six Months Ended

2026 March 31,

2026 June 30,

2025 June 30,

(Dollars in thousands) 2026 2025

Core non-interest expense:

Total non-interest expense $ 72,759 $ 71,635 $ 70,362 $ 144,394 $ 141,149

acquisition-related expenses 410 16 — 426 —

Core non-interest expense $ 72,349 $ 71,619 $ 70,362 $ 143,968 $ 141,149

Efficiency Ratio (Non-US GAAP)

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The efficiency ratio is calculated as total non-interest expense (less amortization of other intangible assets) as a percentage of FTE net interest income plus total non-interest income excluding net gains and losses.

This measure 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 FTE net interest income.

This measure is Non-US GAAP since it excludes amortization of other intangible assets and all gains and losses included in earnings, and uses FTE net interest income.

Three Months Ended

2026 December 31,

Three Months Ended Six Months Ended

2026 March 31,

2026 June 30,

2025 June 30,

(Dollars in thousands) 2026 2025

12 unchanged sentences

Efficiency ratio 58.27 % 58.61 % 59.25 % 58.44 % 59.96 %

Efficiency ratio adjusted for non-core items:

Core non-interest expense $ 72,349 $ 71,619 $ 70,362 $ 143,968 $ 141,149

amortization of other intangible assets 1,697 1,697 2,211 3,394 4,424

Adjusted core non-interest expense 70,652 69,922 68,151 140,574 136,725

Non-interest income excluding net losses 29,005 28,664 27,160 57,669 54,622

Net interest income on an FTE basis 92,949 90,665 87,857 183,614 173,395

Adjusted revenue $ 121,954 $ 119,329 $ 115,017 $ 241,283 $ 228,017

Efficiency ratio adjusted for non-core items 57.93 % 58.60 % 59.25 % 58.26 % 59.96 %

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

The efficiency ratio for the first quarter of 2026 was 58.6%, compared to 57.8% for the linked quarter and 60.7% for the first quarter of 2025.

The efficiency ratio increased compared to the linked quarter mainly due to an increase in non-interest expenses resulting from certain expenses that are usually recognized in the first quarter of each year, coupled with lower accretion income.

The efficiency ratio for the second quarter of 2026 was 58.3%, compared to 58.6% for the linked quarter and 59.3% for the second quarter of 2025.

The efficiency ratio improved compared to the linked quarter mainly as the result of higher net interest income, driven by a reduction in deposit costs.

The efficiency ratio improved compared to the prior year first six months due to lower borrowing costs.

Peoples continues to focus on controlling expenses, while recognizing necessary costs in order to continue growing the business.

Return on Average Assets Adjusted for Non-Core Items Ratio (Non-US GAAP)

2 unchanged sentences

Three Months Ended

2026 December 31,

Three Months Ended Six Months Ended

2026 March 31,

2026 June 30,

2025 June 30,

(Dollars in thousands) 2026 2025

2 unchanged sentences

net loss on investment securities

8,181 — — 8,181 2

tax effect of net loss on investment securities (a)

1,718 — — 1,718 —

net loss on asset disposals and other transactions

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tax effect of net loss on asset disposals and other transactions (a)

94 86 59 180 135

acquisition-related expenses

410 16 — 426 —

tax effect of acquisition-related expenses (a)

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(a) Based on a 21% statutory federal corporate income tax rate.

The return on average assets and the return on average assets adjusted for non-core items for the first quarter of 2026 decreased when compared to the linked quarter due to lower annualized net income which was driven by lower interest income, attributable to fewer days in the period and less accretion income.

The increase in the return on average assets and return on average assets adjusted for non-core items for the first quarter of 2026, compared to the first quarter of 2025, was attributable to an increase in annualized net income driven by an increase in net interest income.

The return on average assets for the second quarter of 2026 decreased when compared to the linked quarter due to lower annualized net income.

The increase in the return on average assets and return on average assets adjusted for non-core items for the second quarter of 2026, compared to the second quarter of 2025, was attributable to an increase in annualized net income driven by a decrease in provision for credit losses and an increase in average assets.

The increase in return on average assets and return on average assets adjusted for non-core items for the first six months of 2026 when compared to the same period of 2025 was primarily driven by an increase in annualized net income from a decrease in provision for credit losses and an increase in average assets.

Return on Average Tangible Equity Ratio (Non-US GAAP)

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measure is Non-US GAAP since it excludes amortization of other intangible assets from earnings and the impact of goodwill and other intangible assets acquired through acquisitions on total stockholders' equity.

Three Months Ended

2026 December 31,

Three Months Ended Six Months Ended

2026 March 31,

2026 June 30,

2025 June 30,

(Dollars in thousands) 2026 2025

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tax effect of amortization of other intangible assets (a)

356 356 464 713 929

Net income excluding amortization of other intangible assets

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Days in the period

91 90 91 181 181

Days in the year

365 365 365 365 365

Annualized net income

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(a) Based on a 21% statutory federal corporate income tax rate.

The return on total average stockholders' equity and average tangible equity ratios decreased when compared to the linked quarter due to a decrease in annualized net income, which was driven by lower interest income, attributable to fewer days in the period and less accretion income.

The increases in the return on total average stockholders' equity and average tangible equity ratios for the first quarter of 2026 compared to the same period of 2025 were driven by higher net income due to increased net interest income.

The return on total average stockholders' equity and return on average tangible equity ratios decreased when compared to the linked quarter due to a decrease in annualized net income.

The increases in the return on total average stockholders' equity and return on average tangible equity ratios for the second quarter and the first six months of 2026 compared to the same periods of 2025 were driven by higher annualized net income.

FINANCIAL CONDITION

Cash and Cash Equivalents

At March 31, 2026, Peoples' cash and balances due from banks increased by $4.4 million, while interest-bearing deposits in other banks decreased $3.0 million from December 31, 2025.

The total cash and cash equivalents balance included $67.9 million of excess cash reserves being maintained at the FRB of Cleveland at March 31, 2026, compared to $73.2 million at December 31, 2025.

At June 30, 2026, Peoples' interest-bearing deposits in other banks had decreased $7.9 million from December 31, 2025.

The total cash and cash equivalents balance included $65.3 million of excess cash reserves being maintained at the FRB of Cleveland at June 30, 2026, compared to $73.2 million at December 31, 2025.

The amount of excess cash reserves maintained is dependent upon Peoples' daily liquidity position, which is driven primarily by changes in deposit and loan balances.

Through the first three months of 2026, Peoples' total cash and cash equivalents increased $1.4 million, driven by inflows of $34.5 million from operating activities, partially offset by cash outflows of $10.8 million for investing activities and $22.2 million for financing activities.

Peoples' use of cash in investing activities was driven by an $18.0 million net increase in loans held for investment, partially offset by net cash inflows primarily related to proceeds from investment securities principal payments.

The cash used in financing activities was driven by $43.5 million in the net change of short-term and long-term borrowings and outflows of $14.6 million for dividends paid, partially offset by an increase in non-interest bearing deposits of $41.1 million.

Through the first six months of 2026, Peoples' total cash and cash equivalents decreased $9.2 million, which reflected cash inflows of $75.7 million for investing activities and $90.6 million from operating activities, partially offset by cash outflows of $175.5 million for financing activities.

Peoples' cash provided by investing activities was primarily driven by sales of available-for-sale investment securities and proceeds from principal payments on held-to-maturity investment securities, which totaled $129.8 million and $105.8 million, respectively.

These increases were partially offset by purchases of available-for-sale investment securities of $74.9 million and a net increase in loans held for investment of $74.6 million.

The cash used by financing activities was driven by a net decrease in interest-bearing deposits of $202.4 million.

Further information regarding the management of Peoples' liquidity position can be found later in this discussion under “Interest Rate Sensitivity and Liquidity.”

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The following table provides information regarding Peoples’ investment portfolio:

(Dollars in thousands) Weighted Average Yield March 31,

(Dollars in thousands) Weighted Average Yield June 30,

2026 March 31,

2026 December 31,

1 unchanged sentence

2025 June 30,

2025 March 31,

Available-for-sale securities, at fair value:

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Carrying value $ 1,817,481 $ 1,961,522 $ 1,975,860 $ 1,972,721 $ 2,019,054

(a) Amortized cost is presented net of the allowance for credit losses of $233 at March 31, 2026, $236 at December 31, 2025, and $237 at March 31, 2025.

For the first quarter of 2026, available-for-sale investment securities increased when compared to the linked quarter due to purchases of additional U.S.

government sponsored securities.

Compared to at March 31, 2025, available-for-sale investment

securities decreased driven primarily by regular principal payments on residential mortgage-backed securities.

Held-to-maturity securities decreased compared to the linked quarter due to prepayments and maturities of residential mortgage-backed securities.

Compared to the prior year quarter, held-to-maturity investment securities increased because of purchases of higher-yielding, longer duration securities booked to held-to-maturity in the third quarter of 2025.

(a) Amortized cost is presented net of the allowance for credit losses of $233 at June 30, 2026, $233 at March 31, 2026 and $237 at June 30, 2025.

For the second quarter of 2026, available-for-sale investment securities decreased compared to all prior periods due to the sale of $135.2 million of securities as Peoples manages its balance sheet under $10 billion in assets ahead of the pending Citizens merger.

For the second quarter of 2026, held-to-maturity securities decreased compared to all prior periods due to prepayments and maturities of collateralized mortgage obligations.

Additional information regarding Peoples' investment portfolio can be found in "Note 3 Investment Securities" of the Notes to the Unaudited Condensed Consolidated Financial Statements.

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The following table provides information regarding outstanding loan balances:

(Dollars in thousands) March 31,

(Dollars in thousands) June 30,

2026 March 31,

2026 December 31,

1 unchanged sentence

2025 June 30,

2025 March 31,

Originated loans and leases:

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Loans that were acquired and subsequently re-underwritten are reported as originated upon execution of such credit actions (for example, renewals and increases in lines of credit).

The period-end total loan and lease balances at March 31, 2026 increased $13.3 million, or 1% annualized, compared to at December 31, 2025.

The increase in the period-end loan and lease balances at March 31, 2026 compared to at December 31, 2025 was

driven by increases of $111.0 million in commercial and industrial loans, partially offset by decreases of $31.4 million in construction loans, $24.2 million in premium finance loans, and $23.1 million in other commercial real estate loans.

The period-end loan and lease balances at March 31, 2026 compared to at March 31, 2025 increased $341.7 million, or 5%, driven by increases of $303.0 million in commercial and industrial loans, $110.3 million in other commercial real estate loans, and $25.5 million in home equity lines of credit, partially offset by decreases of $49.5 million in construction loans, $45.2 million in leases, and $35.2 million in premium finance loans.

The period-end total loan and lease balances at June 30, 2026 increased $51.4 million, or 3% annualized, compared to at March 31, 2026.

The increase in the period-end loan and lease balances at June 30, 2026 compared to at March 31, 2026 was driven by increases of $43.0 million in commercial and industrial loans, driven largely by life premium finance loans, $37.1 million in commercial premium finance loans, and $24.8 million in construction loans, partially offset by a decrease of $57.7 million in other commercial real estate loans.

The period-end loan and lease balances at June 30, 2026 increased $220.0 million, or 3%, compared to at June 30, 2025, driven by increases of $282.4 million in commercial and industrial loans, $34.9 million in other commercial real estate loans, and $32.2 million home equity lines of credit.

These increases were partially offset by decreases of $47.0 million in construction loans, $46.1 million in leases, and $31.5 million in residential real estate loans.

Loan Concentration

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Peoples' commercial lending activities continue to be spread over a diverse range of businesses from many sectors of the economy, with no single industry comprising over 10% of Peoples' total loan portfolio.

Loans secured by commercial real estate, including commercial construction loans, continued to comprise the largest portion of Peoples' loan portfolio at March 31, 2026.

The following tables provide information regarding the largest concentrations of commercial construction loans and other commercial real estate loans within the loan portfolio at March 31, 2026:

Loans secured by commercial real estate, including commercial construction loans, continued to comprise the largest portion of Peoples' loan portfolio at June 30, 2026.

The following tables provide information regarding the largest concentrations of commercial construction loans and other commercial real estate loans within the loan portfolio at June 30, 2026:

(Dollars in thousands) Outstanding Balance Loan Commitments Total Exposure % of Total

2 unchanged sentences

Land development 29,706 13,260 42,966 7.2 %

Industrial 25,906 22,419 48,325 7.8 %

Land only 27,618 33,330 60,948 10.2 %

Healthcare — 20,400 20,400 3.3 %

Industrial 33,902 18,687 52,589 8.8 %

Residential property 4,614 14,588 19,202 3.2 %

Storage facility 6,788 13,328 20,116 3.4 %

Healthcare facilities 660 19,719 20,379 3.4 %

Warehouse facilities 12,701 2,930 15,631 2.6 %

Student housing 15,000 — 15,000 2.4 %

Retail facilities 5,442 7,215 12,657 2.0 %

Other (a) 42,561 19,429 61,990 10.5 %

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Total mixed-use facilities $ 65,953 $ 479 $ 66,432 2.8 %

Storage Facility

Storage Facility / Mini Storage

Owner occupied $ 47,727 $ 196 $ 47,923 2.1 %

Non-owner occupied 4,358 66 4,424 0.2 %

Total storage facilities $ 52,451 $ 643 $ 53,094 2.2 %

Total storage facility/ mini storage $ 52,085 $ 262 $ 52,347 2.3 %

Other (a) 534,592 25,775 560,367 24.0 %

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and Maryland.

For all other states, the aggregate outstanding balances of commercial loans in each state were less than 6% of total loans at March 31, 2026 and less than 4% of total loans at December 31, 2025.

For all other states, the aggregate outstanding balances of commercial loans in each state were less than 6% of total loans at June 30, 2026 and at December 31, 2025.

The repayment of premium finance loans is secured by the underlying insurance policy prepaid premium, and therefore, geography is not a factor from a repayment perspective.

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While this process involves allocations being made to specific loans and pools of loans, the entire allowance is available for all losses expected within the loan portfolio.

The following details management's allocation of the allowance for credit losses:

(Dollars in thousands) March 31,

The following table details management's allocation of the allowance for credit losses:

(Dollars in thousands) June 30,

2026 March 31,

2026 December 31,

1 unchanged sentence

2025 June 30,

2025 March 31,

Construction $ 1,694 $ 1,512 $ 1,391 $ 1,252 $ 1,347

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As a percent of total loans 1.14 % 1.16 % 1.12 % 1.11 % 1.13 %

The increase in the allowance for credit losses at March 31, 2026 compared to at December 31, 2025 was driven by a deterioration in the economic forecasts used within the CECL model.

Compared to at March 31, 2025, the allowance for credit losses increased due to (i) loan growth, (ii) deterioration in the economic forecasts used within the CECL model, (iii) a periodic refresh in the loss drivers utilized within the CECL model, (iv) an increase in reserves for leases originated by the North Star Leasing division, and (v) an increase in individually analyzed loans and leases.

The decrease in the allowance for credit losses at June 30, 2026 compared to at March 31, 2026 was driven by a reduction of balances in loan segments with higher loss rates, partially offset by an increase in individually-analyzed loans.

Compared to at June 30, 2025, the allowance for credit losses increased due to loan growth and a deterioration in macro-economic conditions, partially offset by a decrease in individually-analyzed loans.

Additional information regarding Peoples' allowance for credit losses can be found in "Note 1 Summary of Significant Accounting Policies" in Peoples' 2025 Form 10-K and "Note 4 Loans and Leases" of the Notes to the Unaudited Condensed Consolidated Financial Statements in this Form 10-Q.

1 unchanged sentence

Three Months Ended

(Dollars in thousands) March 31,

(Dollars in thousands) June 30,

2026 March 31,

2026 December 31,

1 unchanged sentence

2025 June 30,

2025 March 31,

Gross charge-offs:

39 unchanged sentences

Three Months Ended

(Dollars in thousands) March 31,

(Dollars in thousands) June 30,

2026 March 31,

2026 December 31,

1 unchanged sentence

2025 June 30,

2025 March 31,

Commercial and industrial 0.01 % 0.02 % 0.02 % 0.03 % 0.03 %

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Each with "--%" not meaningful.

Total net charge-offs during the first quarter of 2026 were $6.6 million, or 0.40% of average total loans on an annualized basis, compared to $7.4 million, or 0.44% of average total loans on an annualized basis during the linked quarter, and $8.1 million, or 0.52% of average total loans on an annualized basis, during the first quarter of 2025.

Compared to the linked quarter and first quarter of 2025, net charge-offs decreased, primarily driven by a decrease in net charge-offs in leases originated by the North Star Leasing division.

Total net charge-offs during the second quarter of 2026 were $5.2 million, or 0.31% of average total loans on an annualized basis, compared to $6.6 million, or 0.40% of average total loans on an annualized basis, during the linked quarter and $7.0 million, or 0.43% of average total loans on an annualized basis, during the second quarter of 2025.

Compared to the linked quarter and same period of 2025, net charge-offs decreased, primarily driven by a decrease in net charge-offs in leases and indirect consumer loans.

The following table details Peoples’ nonperforming assets:

(Dollars in thousands) March 31,

(Dollars in thousands) June 30,

2026 March 31,

2026 December 31,

1 unchanged sentence

2025 June 30,

2025 March 31,

Loans 90+ days past due and accruing:

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Nonaccrual loans:

Construction 293 — — — —

Commercial real estate, other 6,802 7,363 4,056 3,861 4,824

29 unchanged sentences

NPAs include nonperforming loans and OREO.

Peoples' NPAs decreased from 0.45% of total assets at December 31, 2025 to 0.41% of total assets at March 31, 2026.

Total loans 90+ days past due and accruing decreased at March 31, 2026 compared to December 31, 2025, driven by a decrease in residential real estate loans which were transferred to nonaccrual status.

During the first quarter of 2026, criticized loans decreased $12.3 million, while classified loans decreased $5.2 million when compared to at December 31, 2025.

The decrease in both criticized and classified loans compared to at December 31, 2025 was driven by paydowns and loan upgrades.

The decrease in criticized loans compared to at March 31, 2025 was driven by paydowns and loan upgrades.

The increase in classified loans for the same period was driven by loan downgrades.

The decrease in NPAs compared to at December 31, 2025, was primarily driven by a decrease in nonaccrual commercial and industrial loans and leases, partially offset by an increase in nonaccrual other commercial real estate loans .

The decrease in NPAs compared to at March 31, 2025, was driven primarily by the sale of an OREO property in the fourth quarter of 2025.

Peoples' NPAs increased from 0.41% of total assets at March 31, 2026 to 0.43% of total assets at June 30, 2026.

Total loans 90+ days past due and accruing increased at June 30, 2026 compared to March 31, 2026 driven by two large other commercial real estate loans totaling $3.8 million.

During the second quarter of 2026, criticized loans increased $49.7 million, while classified loans decreased $1.1 million when compared to at March 31, 2026.

The increase in criticized loans compared to at March 31, 2026 was driven by fewer paydowns on loans previously considered criticized, coupled with an increase in loan downgrades.

The increase in classified loans when compared to at June 30, 2025 was driven by loan downgrades.

The increase in NPAs compared to at March 31, 2026, was primarily driven by the aforementioned other commercial real estate loans 90+ days past due and accruing.

The decrease in NPAs compared to at June 30, 2025, was driven by the sale of a commercial OREO property at the end of 2025.

The following table details Peoples’ deposit balances:

(Dollars in thousands) March 31,

(Dollars in thousands) June 30,

2026 March 31,

2026 December 31,

1 unchanged sentence

2025 June 30,

2025 March 31,

Non-interest-bearing deposits (a) $ 1,593,799 $ 1,586,514 $ 1,545,428 $ 1,536,094 $ 1,530,824

Interest-bearing deposits:

Interest-bearing demand accounts (a) 1,111,875 1,092,252 1,068,443 1,058,910 1,087,197

Savings accounts 918,557 887,402 884,230 889,872 894,592

Retail CDs 1,876,056 1,968,441 1,983,791 2,008,619 2,005,322

Interest-bearing demand accounts (a) 1,094,873 1,111,875 1,092,252 1,068,443 1,058,910

Money market deposit accounts 995,487 958,413 945,313 948,177 927,543

Savings accounts 915,505 918,557 887,402 884,230 889,872

Governmental deposit accounts 755,024 842,087 739,939 769,782 781,949

4 unchanged sentences

(a) The sum of amounts presented is considered total demand deposits.

At March 31, 2026, period-end total deposits increased $38.2 million compared to at December 31, 2025, driven by increases of $102.1 million in governmental deposits, which was due to seasonality, $41.1 million in non-interest bearing deposits, $31.2 million in savings accounts, and $19.6 million in interest-bearing demand accounts, partially offset by a decrease of $153.5 million in brokered deposits.

The decrease in brokered deposit accounts was due to a strategic shift to other funding sources at lower rates.

Compared to at March 31, 2025, period-end deposit balances decreased $86.3 million, or 1%.

At June 30, 2026, period-end total deposits decreased $192.1 million compared to at March 31, 2026, driven by decreases of $92.4 million in retail certificates of deposits, $87.1 million in governmental deposits, driven by seasonality, and $36.9 million in brokered CDs, partially offset by increases of $37.1 million in money market deposit accounts.

Compared to June 30, 2025, period-end deposit balances decreased $180.8 million, or 2%.

The decrease in total deposits was primarily driven by a decrease of $217.2 million in brokered deposits and $129.3 million in retail certificates of deposits, partially offset by increases of $67.9 million in money market deposit accounts, $63.0 million in non-interest bearing deposits, $36.0 million in interest-bearing demand accounts, and $25.6 million in savings accounts.

As part of its funding strategy, Peoples hedges 90-day brokered CDs or FHLB advances with interest rate swaps.

The interest rate swaps pay a fixed rate of interest while receiving a floating rate component of interest tied to term SOFR, which offsets the rate on the brokered CDs or FHLB advances.

As of March 31, 2026, Peoples had five effective interest rate swaps, with an aggregate notional value of $45.0 million, which were designated as cash flow hedges.

As of June 30, 2026, Peoples had four effective interest rate swaps, with an aggregate notional value of $35.0 million, which were designated as cash flow hedges.

Peoples continually evaluates the overall balance sheet position given the interest rate environment.

1 unchanged sentence

The following table details Peoples’ short-term borrowings and long-term borrowings:

(Dollars in thousands) March 31,

(Dollars in thousands) June 30,

2026 March 31,

2026 December 31,

1 unchanged sentence

2025 June 30,

2025 March 31,

Short-term borrowings:

1 unchanged sentence

$ 544,000 $ 420,000 $ 365,000 $ 194,000 $ 356,000

Current portion of long-term FHLB advances

10,021 — — — —

Retail repurchase agreements

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Other long-term borrowings include trust preferred securities and floating rate deferrable interest debentures.

Total borrowed funds at March 31, 2026 decreased compared to at December 31, 2025 due to the increase in period-end deposits.

Total borrowed funds increased compared to at March 31, 2025 due to higher overnight borrowings.

Total borrowed funds at June 30, 2026 increased compared to at March 31, 2026 due to higher overnight borrowings.

Total borrowed funds increased compared to at June 30, 2025 due to higher overnight borrowings, partially offset by the payoff of long-term FHLB advances.

Capital/Stockholders’ Equity

At March 31, 2026, capital levels for both Peoples and Peoples Bank remained substantially higher than the minimum amounts needed to be considered "well capitalized" institutions under applicable banking regulations.

At June 30, 2026, capital levels for both Peoples and Peoples Bank remained substantially higher than the minimum amounts needed to be considered "well capitalized" institutions under applicable banking regulations.

These higher capital levels reflect Peoples' desire to maintain a strong capital position.

In order to avoid limitations on dividends, equity repurchases and compensation, Peoples must exceed the three minimum required ratios by at least the capital conservation buffer of 2.50%, which applies to the common equity tier 1 ("CET1") ratio, the tier 1 capital ratio and the total risk-based capital ratio.

At March 31, 2026, Peoples had a capital conservation buffer of 5.98%.

At June 30, 2026, Peoples had a capital conservation buffer of 6.19%.

The following table details Peoples' risk-based capital levels and corresponding ratios:

(Dollars in thousands) March 31,

(Dollars in thousands) June 30,

2026 March 31,

2026 December 31,

1 unchanged sentence

2025 June 30,

2025 March 31,

Capital Amounts:

8 unchanged sentences

Tier 1 leverage ratio 10.33 % 10.14 % 9.91 % 9.74 % 9.83 %

Peoples' risk-based capital ratios at March 31, 2026 increased when compared to at December 31, 2025 due to net income during the quarter, partially offset by dividends paid.

Peoples' risk-based capital ratios at June 30, 2026 increased when compared to at March 31, 2026 due to the increase in retained earnings, driven by net income in the quarter coupled with a decrease in accumulated other comprehensive income.

In addition to traditional capital measurements, management uses tangible capital measures to evaluate the adequacy of Peoples' stockholders' equity.

1 unchanged sentence

Management believes this information is useful to investors since it facilitates the comparison of Peoples' operating performance, financial condition and trends to peers, especially those without a similar level of intangible assets to that of Peoples.

Further, intangible assets generally are difficult to convert into cash, especially during a financial crisis, and could decrease substantially in value should there be deterioration in the overall franchise value.

Further, intangible assets generally are difficult to convert into cash, especially during a financial crisis, and could decrease substantially in

value should there be deterioration in the overall franchise value.

As a result, tangible equity represents a conservative measure of the capacity for Peoples to incur losses but remain solvent.

The following table reconciles the calculation of these Non-US GAAP financial measures to amounts reported in Peoples' Unaudited Condensed Consolidated Financial Statements:

(Dollars in thousands) March 31,

(Dollars in thousands) June 30,

2026 March 31,

2026 December 31,

1 unchanged sentence

2025 June 30,

2025 March 31,

Tangible equity:

25 unchanged sentences

9.25 % 8.91 % 8.79 % 8.53 % 8.26 %

Tangible book value per common share increased to $22.95 at March 31, 2026 compared to $22.77 at December 31, 2025.

The change in tangible book value per common share was due to net income over the last three months.

Tangible book value per common share at March 31, 2026 increased compared to at March 31, 2025 primarily due to net income over the last twelve months.

Tangible book value per common share increased to $23.56 at June 30, 2026 compared to $22.95 at March 31, 2026.

Tangible book value per common share at June 30, 2026 increased compared to at June 30, 2025 primarily due to net income over the last twelve months.

The change in tangible equity to tangible assets was due to the decrease in tangible assets during the second quarter of 2026 primarily driven by the sale of $135.2 million of available-for-sale securities.

Interest Rate Sensitivity and Liquidity

12 unchanged sentences

Net Interest Income Estimated (Decrease) Increase in Economic Value of Equity

(in Basis Points) March 31, 2026 December 31, 2025 March 31, 2026 December 31, 2025

(in Basis Points) June 30, 2026 December 31, 2025 June 30, 2026 December 31, 2025

300 $ 41,207 10.7 % $ 33,685 9.0 % $ (126,798) (5.7) % $ (180,169) (8.5) %

15 unchanged sentences

Peoples believes these scenarios to be more reflective of how interest rates change versus the severe parallel rate shocks described above.

Given the shape of market yield curves at March 31, 2026, consideration of the bear steepener and bull steepener scenarios provide insights which were not captured by parallel shifts.

Given the shape of market yield curves at June 30, 2026, consideration of the bear steepener and bull steepener scenarios provide insights which were not captured by parallel shifts.

The bear steepener scenario highlights the risk to net interest income and economic value of equity when short-term interest rates remain constant while long-term interest rates rise.

In such a scenario, Peoples' deposit and borrowing costs, which are generally correlated with short-term interest rates, remain constant, while asset yields, which are correlated with long-term interest rates, rise.

At March 31, 2026, the bear steepener scenario produced an increase in net interest income of 1.0% and an increase in the economic value of equity of 3.7%.

At June 30, 2026, the bear steepener scenario produced an increase in net interest income of 1.0% and an increase in the economic value of equity of 4.0%.

The bull steepener scenario highlights the risk to net interest income and the economic value of equity when short-term rates fall faster than long-term rates.

1 unchanged sentence

Deposit costs decrease less quickly than variable rate asset yields over a short-term horizon but are mitigated to some extent over a longer horizon, resulting in a decreased amount of net interest income (margin) in a 12 month period and a relatively neutral impact to net interest income (margin) in a 24 month period.

At March 31, 2026, the bull steepener scenario produced a decline of 0.6% to net interest income, as the impact of revised assumptions around deposit betas mitigate the impact of lower short-term rates over a 12-month horizon, and an increase in the economic value of equity of 1.0%.

At June 30, 2026, the bull steepener scenario produced a decline of 1.0% to net interest income, as the impact of revised assumptions around deposit betas mitigate the impact of lower short-term rates over a 12-month horizon, and an increase in the economic value of equity of 1.0%.

Peoples has entered into interest rate swaps as part of its interest rate risk management strategy.

These interest rate swaps are designated as cash flow hedges and involve the receipt of variable rate amounts from a counterparty in exchange for Peoples making fixed payments.

As of March 31, 2026, Peoples had entered into five interest rate swap contracts with an aggregate notional value of $45.0 million.

As of June 30, 2026, Peoples had entered into four interest rate swap contracts with an aggregate notional value of $35.0 million.

Additional information regarding Peoples’ interest rate swaps can be found in “Note 10 Derivative Financial Instruments” of the Notes to the Unaudited Condensed Consolidated Financial Statements.

At March 31, 2026, Peoples' Unaudited Consolidated Balance Sheet was positioned to benefit from rising interest rates, while also mitigating the impact to net interest income decreasing rate scenarios.

At June 30, 2026, Peoples' Unaudited Consolidated Balance Sheet was positioned to benefit from rising interest rates, while also mitigating the impact to net interest income decreasing rate scenarios.

The table above illustrates this point as changes to net interest income increase in the rising interest rate scenarios.

1 unchanged sentence

Peoples revisits the model assumptions on an ongoing basis, and determined the methods used by the ALCO to monitor and evaluate the

adequacy of Peoples Bank's liquidity position remain appropriate and are largely unchanged from those disclosed in Peoples' 2025 Form 10-K.

At March 31, 2026, Peoples Bank had liquid assets of $580.2 million, which represented 5.2% of total assets and unfunded loan commitments.

adequacy of Peoples Bank's liquidity position remains appropriate and is largely unchanged from those disclosed in Peoples' 2025 Form 10-K.

At June 30, 2026, Peoples Bank had liquid assets of $493.2 million, which represented 4.5% of total assets and unfunded loan commitments.

Peoples also had an additional $56.3 million of unpledged investment securities not included in the measurement of liquid assets.

9 unchanged sentences

Historically, most loan commitments and standby letters of credit expire unused.

Peoples Bank's exposure to credit loss in the event of nonperformance by the counter-party to the financial instrument for loan commitments and standby letters of credit is represented by the contractual amount of those instruments.

Peoples Bank's exposure to credit loss in the event of nonperformance by the counterparty to the financial instrument for loan commitments and standby letters of credit is represented by the contractual amount of those instruments.

Peoples Bank uses the same underwriting standards in making commitments and conditional obligations as it does for on-balance sheet instruments.

6 unchanged sentences

(Dollars in thousands)

2026 March 31,

2026 December 31,

1 unchanged sentence

2025 June 30,

2025 March 31,

Home equity lines of credit $ 297,084 $ 278,771 $ 272,977 $ 267,598 $ 268,217

7 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 2. Management’s Discussion and Analysis