Fair Value of Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2015

Assets Measured at Fair Value on a Recurring Basis

Available-for-sale securities measured at fair value on a recurring basis comprised the following:



			Fair Value Measurements at Reporting Date Using
(Dollars in thousands)			Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	Fair Value
September 30, 2015
Obligations of:
U.S. Treasury and government agencies	$	—	$	—	$	—	$	—
U.S. government sponsored agencies	2,993		—		2,993		—
States and political subdivisions	115,249		—		115,249		—
Residential mortgage-backed securities	639,327		—		639,327		—
Commercial mortgage-backed securities	24,348		—		24,348		—
Bank-issued trust preferred securities	4,776		—		4,776		—
Equity securities	6,592		6,383		209		—
Total available-for-sale securities	$	793,285	$	6,383	$	786,902	$	—
December 31, 2014
Obligations of:
U.S. Treasury and government agencies	$	1	$	—	$	1	$	—
U.S. government sponsored agencies	5,950		—		5,950		—
States and political subdivisions	64,743		—		64,743		—
Residential mortgage-backed securities	527,291		—		527,291		—
Commercial mortgage-backed securities	27,847		—		27,847		—
Bank-issued trust preferred securities	5,645		—		5,645		—
Equity securities	5,403		5,204		199		—
Total available-for-sale securities	$	636,880	$	5,204	$	631,676	$	—

Fair Value Amounts Disclosures

Held-to-maturity securities reported at fair value comprised the following:



			Fair Value at Reporting Date Using
(Dollars in thousands)			Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
	Fair Value		(Level 1)		(Level 2)		(Level 3)
September 30, 2015
Obligations of:
States and political subdivisions	$	4,258	$	—	$	4,258	$	—
Residential mortgage-backed securities	36,080		—		36,080		—
Commercial mortgage-backed securities	6,797		—		6,797		—
Total held-to-maturity securities	$	47,135	$	—	$	47,135	$	—
December 31, 2014
Obligations of:
States and political subdivisions	$	4,282	$	—	$	4,282	$	—
Residential mortgage-backed securities	36,740		—		36,740		—
Commercial mortgage-backed securities	7,420		—		7,420		—
Total held-to-maturity securities	$	48,442	$	—	$	48,442	$	—

Fair Values of Financial Assets and Liabilities on Balance Sheets

The following table presents the fair values of financial assets and liabilities carried on Peoples’ Consolidated Balance Sheets, including those financial assets and financial liabilities that are not measured and reported at fair value on a recurring basis or non-recurring basis:



	September 30, 2015				December 31, 2014
(Dollars in thousands)	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Financial assets:
Cash and cash equivalents	$	63,741	$	63,741	$	61,454	$	61,454
Investment securities	878,180		878,916		713,659		713,633
Loans	2,028,550		1,990,941		1,607,391		1,581,813
Financial liabilities:
Deposits	$	2,530,856	$	2,535,874	$	1,933,074	$	1,938,021
Short-term borrowings	129,165		129,165		88,277		88,277
Long-term borrowings	116,400		121,753		179,083		183,878

- Definition

Tabular disclosure of the application of the fair value option for measurement and reporting of eligible financial assets and liabilities (as defined), as well as certain other eligible items (as defined) included in the statement of financial position, whether such option is elected for a single eligible item or a group of similar eligible items and is in addition to other disclosures concerning fair value which the company may be required to provide. Such disclosure might be expected to include: (1) for items included in the statement of financial position: (a) for each line item in the statement of financial position that includes an item or items for which the fair value option has been elected, provide the aggregate carrying amount of ineligible items included in each line item in the balance sheet, if any; (b) the difference between the aggregate fair value and the aggregate unpaid principal balance (assuming contractual principal amounts and fair value option elected) of: (i) loans and long-term receivables (other than securities otherwise reported at fair value) and (ii) long-term debt instruments; (c) for loans held as assets for which the fair value option has been elected: (i) the aggregate fair value of loans that are 90 days or more past due, (ii) if the policy is to recognize interest income separately from other changes in fair value, the aggregate fair value of loans in nonaccrual status, and (iii) the difference between the aggregate fair value and the aggregate unpaid principal balance for loans that are 90 days or more past due, in nonaccrual status, or both; (2) for items included in the income statement: (a) the amounts of gains and losses from fair value changes included in earnings and in which line in the income statement those gains and losses are reported whether or not combined with gains and losses from items required to be accounted for at fair value; (b) for loans and other receivables held as assets, the estimated amount of gains or losses included in earnings attributable to changes in instrument-specific credit risk; (c) for liabilities with fair values that have been significantly affected during the reporting period by changes in the instrument-specific credit risk, the estimated amount of gains and losses from fair value changes included in earnings that are attributable to changes in the instrument-specific credit risk; and (3) certain other disclosures as required or determined to be provided.

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