Investment Securities (Tables)

9 Months Ended

Sep. 30, 2014

Investment Holdings [Line Items]

Summary of Available-for-sale Investment Securities

The following table summarizes Peoples’ available-for-sale investment securities:

(Dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
September 30, 2014
Obligations of:
U.S. Treasury and government agencies	$	7	$	—	$	—		$	7
U.S. government sponsored agencies	8,636		87		(34		)	8,689
States and political subdivisions	61,616		2,557		(125		)	64,048
Residential mortgage-backed securities	523,229		5,812		(10,882		)	518,159
Commercial mortgage-backed securities	28,083		101		(642		)	27,542
Bank-issued trust preferred securities	8,521		83		(410		)	8,194
Equity securities	1,408		3,855		(75		)	5,188
Total available-for-sale securities	$	631,500	$	12,495	$	(12,168	)	$	631,827
December 31, 2013
Obligations of:
U.S. Treasury and government agencies	$	20	$	—	$	—		$	20
U.S. government sponsored agencies	308		11		—			319
States and political subdivisions	50,509		1,480		(1,027		)	50,962
Residential mortgage-backed securities	527,283		5,334		(22,520		)	510,097
Commercial mortgage-backed securities	33,256		274		(1,226		)	32,304
Bank-issued trust preferred securities	8,508		—		(679		)	7,829
Equity securities	1,242		3,421		(86		)	4,577
Total available-for-sale securities	$	621,126	$	10,520	$	(25,538	)	$	606,108

Schedule of Gross Gains and Losses from Sales of Available-for-sale Securities

The gross gains and gross losses realized by Peoples from sales of available-for-sale securities for the periods ended September 30 were as follows:

	Three Months Ended					Nine Months Ended
	September 30,					September 30,
(Dollars in thousands)	2014		2013			2014		2013
Gross gains realized	$	129	$	—		$	863	$	3,312
Gross losses realized	5		1			703		2,869
Net gain (loss) realized	$	124	$	(1	)	$	160	$	443

Summary of Available-for-sale Securities with Unrealized Loss

The following table presents a summary of available-for-sale investment securities that had an unrealized loss:

	Less than 12 Months					12 Months or More					Total
(Dollars in thousands)	Fair Value		Unrealized Loss		No. of Securities	Fair Value		Unrealized Loss		No. of Securities	Fair Value		Unrealized Loss
September 30, 2014
Obligations of:
U.S. Treasury and government agencies	$	—	$	—	—	$	—	$	—	—	$	—	$	—
U.S. government sponsored agencies	4,360		34		6	—		—		—	4,360		34
States and political subdivisions	2,422		10		2	8,398		115		12	10,820		125
Residential mortgage-backed securities	156,672		1,993		29	199,889		8,889		55	356,561		10,882
Commercial mortgage-backed securities	3,327		13		1	19,086		629		4	22,413		642
Bank-issued trust preferred securities	—		—		—	2,588		410		3	2,588		410
Equity securities	—		—		—	101		75		1	101		75
Total	$	166,781	$	2,050	38	$	230,062	$	10,118	75	$	396,843	$	12,168
December 31, 2013
Obligations of:
U.S. Treasury and government agencies	$	—	$	—	—	$	—	$	—	—	$	—	$	—
U.S. government sponsored agencies	—		—		—	—		—		—	—		—
States and political subdivisions	15,848		659		22	6,180		368		10	22,028		1,027
Residential mortgage-backed securities	310,315		16,709		75	57,440		5,811		20	367,755		22,520
Commercial mortgage-backed securities	19,560		779		4	7,205		447		2	26,765		1,226
Bank-issued trust preferred securities	2,013		90		1	4,803		589		4	6,816		679
Equity securities	—		—		—	97		86		2	97		86
Total	$	347,736	$	18,237	102	$	75,725	$	7,301	38	$	423,461	$	25,538

Summary of Held-to-maturity Investment Securities

The following table summarizes Peoples’ held-to-maturity investment securities:

(Dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
September 30, 2014
Obligations of:
States and political subdivisions	$	3,843	$	414	$	(6	)	$	4,251
Residential mortgage-backed securities	37,316		36		(770		)	36,582
Commercial mortgage-backed securities	7,724		2		(325		)	7,401
Total held-to-maturity securities	$	48,883	$	452	$	(1,101	)	$	48,234
December 31, 2013
Obligations of:
States and political subdivisions	$	3,850	$	91	$	(12	)	$	3,929
Residential mortgage-backed securities	37,536		35		(3,041		)	34,530
Commercial mortgage-backed securities	7,836		2		(203		)	7,635
Total held-to-maturity securities	$	49,222	$	128	$	(3,256	)	$	46,094

Available-for-sale securities

Investment Holdings [Line Items]

Summary of Investment Securities by Contractual Maturity

The table below presents the amortized cost, fair value and total weighted-average yield of available-for-sale securities by contractual maturity at September 30, 2014.  The weighted-average yields are based on the amortized cost.  In some cases, the issuers may have the right to call or prepay obligations without call or prepayment penalties prior to the contractual maturity date.  Rates are calculated on a fully tax-equivalent basis using a 35% federal income tax rate.

(Dollars in thousands)	Within 1 Year			1 to 5 Years			5 to 10 Years			Over 10 Years			Total
Amortized cost
Obligations of:
U.S. Treasury and government agencies	$	—		$	3		$	—		$	4		$	7
U.S. government sponsored agencies	—			981			—			7,655			8,636
States and political subdivisions	272			4,985			23,345			33,014			61,616
Residential mortgage-backed securities	—			13,106			28,240			481,883			523,229
Commercial mortgage-backed securities	—			—			23,054			5,029			28,083
Bank-issued trust preferred securities	—			—			—			8,521			8,521
Equity securities													1,408
Total available-for-sale securities	$	272		$	19,075		$	74,639		$	536,106		$	631,500
Fair value
Obligations of:
U.S. Treasury and government agencies	$	—		$	3		$	—		$	4		$	7
U.S. government sponsored agencies	—			999			—			7,690			8,689
States and political subdivisions	273			5,289			24,215			34,271			64,048
Residential mortgage-backed securities	—			13,062			28,349			476,748			518,159
Commercial mortgage-backed securities	—			—			22,412			5,130			27,542
Bank-issued trust preferred securities	—			—			—			8,194			8,194
Equity securities													5,188
Total available-for-sale securities	$	273		$	19,353		$	74,976		$	532,037		$	631,827
Total weighted-average yield	4.66		%	3.37		%	2.98		%	2.71		%	2.78		%

Held-to-maturity securities

Investment Holdings [Line Items]

Summary of Held-to-maturity Securities with Unrealized Loss

The following table presents a summary of held-to-maturity investment securities that had an unrealized loss:

	Less than 12 Months					12 Months or More					Total
(Dollars in thousands)	Fair Value		Unrealized Loss		No. of Securities	Fair Value		Unrealized Loss		No. of Securities	Fair Value		Unrealized Loss
September 30, 2014
Obligations of:
States and political subdivisions	$	—	$	—	—	$	325	$	6	1	$	325	$	6
Residential mortgage-backed securities	10,862		50		2	18,565		720		6	29,427		770
Commercial mortgage-backed securities	—		—		—	6,335		325		1	6,335		325
Total	$	10,862	$	50	2	$	25,225	$	1,051	8	$	36,087	$	1,101
December 31, 2013
Obligations of:
States and political subdivisions	$	321	$	12	1	$	—	$	—	—	$	321	$	12
Residential mortgage-backed securities	$	31,341	$	2,908	7	$	1,181	$	133	1	$	32,522	$	3,041
Commercial mortgage-backed securities	6,547		203		1	—		—		—	6,547		203
Total	$	38,209	$	3,123	9	$	1,181	$	133	1	$	39,390	$	3,256

Summary of Investment Securities by Contractual Maturity

The table below presents the amortized cost, fair value and total weighted-average yield of held-to-maturity securities by contractual maturity at September 30, 2014.  The weighted-average yields are based on the amortized cost.  In some cases, the issuers may have the right to call or prepay obligations without call or prepayment penalties prior to the contractual maturity date.  Rates are calculated on a fully tax-equivalent basis using a 35% federal income tax rate.

(Dollars in thousands)	Within 1 Year			1 to 5 Years			5 to 10 Years			Over 10 Years			Total
Amortized cost
Obligations of:
States and political subdivisions	$	—		$	—		$	330		$	3,513		$	3,843
Residential mortgage-backed securities	—			—			512			36,804			37,316
Commercial mortgage-backed securities	—			—			—			7,724			7,724
Total held-to-maturity securities	$	—		$	—		$	842		$	48,041		$	48,883
Fair value
Obligations of:
States and political subdivisions	$	—		$	—		$	325		$	3,926		$	4,251
Residential mortgage-backed securities	—			—			504			36,078			36,582
Commercial mortgage-backed securities	—			—			—			7,401			7,401
Total held-to-maturity securities	$	—		$	—		$	829		$	47,405		$	48,234
Total weighted-average yield	—		%	—		%	2.61		%	2.73		%	2.73		%