Loans (Tables)

3 Months Ended

Mar. 31, 2016

Receivables [Abstract]

Loans

Loans

Peoples' loan portfolio consists of various types of loans originated primarily as a result of lending opportunities within Peoples' primary market areas of northeastern, central, southwestern and southeastern Ohio, west central West Virginia, and northeastern Kentucky. Acquired loans consist of loans purchased in 2012 or thereafter in a business combination. The major classifications of loan balances, excluding loans held for sale, were as follows:

(Dollars in thousands)	March 31, 2016		December 31, 2015
Originated loans:
Commercial real estate, construction	$	69,499	$	63,785
Commercial real estate, other	471,998		471,184
Commercial real estate	541,497		534,969
Commercial and industrial	308,649		288,130
Residential real estate	302,512		288,783
Home equity lines of credit	76,959		74,176
Consumer	245,596		227,133
Deposit account overdrafts	2,083		1,448
Total originated loans	$	1,477,296	$	1,414,639
Acquired loans:
Commercial real estate, construction	$	11,882	$	12,114
Commercial real estate, other	256,201		265,092
Commercial real estate	268,083		277,206
Commercial and industrial	59,161		63,589
Residential real estate	263,237		276,772
Home equity lines of credit	30,742		32,253
Consumer	6,596		7,981
Deposit account overdrafts	—		—
Total acquired loans	$	627,819	$	657,801
Loans, net of deferred fees and costs	$	2,105,115	$	2,072,440

Peoples has acquired various loans through business combinations for which there was, at acquisition, evidence of deterioration of credit quality since origination, and for which it was probable that all contractually required payments would not be collected. The carrying amounts of these loans included in the loan balances above are summarized as follows:

(Dollars in thousands)	March 31, 2016		December 31, 2015
Commercial real estate, other	$	16,636	$	16,893
Commercial and industrial	2,866		3,040
Residential real estate	26,210		27,155
Consumer	168		193
Total outstanding balance	$	45,880	$	47,281
Net carrying amount	$	33,637	$	35,064

Changes in the accretable yield for purchased credit impaired loans for the three months ended March 31, 2016 were as follows:

(Dollars in thousands)	Accretable Yield
Balance, December 31, 2015	$	7,042
Reclassification from nonaccretable to accretable	1,916
Accretion	(491		)
Balance, March 31, 2016	$	8,467

The reclassification from nonaccretable to accretable related to the re-estimation of cash flows on the acquired purchased credit impaired loan portfolios completed during the first quarter of 2016, coupled with the loans performing better than expected. The majority of the reclassification related to prepayment speeds decreasing in the residential portfolio, resulting in higher total expected cash flows.

Cash flows expected to be collected on purchased credit impaired loans are estimated semi-annually by incorporating several key assumptions similar to the initial estimate of fair value. These key assumptions include probability of default, and the amount of actual prepayments after the acquisition date. Prepayments affect the estimated life of the loans and could change the amount of interest income, and possibly principal expected to be collected. In reforecasting future estimated cash flows, credit loss expectations are adjusted as necessary.

Peoples pledges certain loans secured by 1-4 family and multifamily residential mortgages under a blanket collateral agreement to secure borrowings from the FHLB. The amount of such pledged loans totaled $553.8 million and $554.8 million at March 31, 2016 and December 31, 2015, respectively. Peoples also pledges commercial loans to secure borrowings with the FRB. The outstanding balances of these loans totaled $183.5 million and $195.5 million at March 31, 2016 and December 31, 2015, respectively.

Nonaccrual and Past Due Loans

A loan is considered past due if any required principal and interest payments have not been received as of the date such payments were required to be made under the terms of the loan agreement. A loan may be placed on nonaccrual status regardless of whether or not such loan is considered past due.

The recorded investments in loans on nonaccrual status and loans delinquent for 90 days or more and accruing were as follows:

	Nonaccrual Loans				Loans 90+ Days Past Due and Accruing
(Dollars in thousands)	March 31, 2016		December 31, 2015		March 31, 2016		December 31, 2015
Originated loans:
Commercial real estate, construction	$	891	$	921	$	—	$	—
Commercial real estate, other	6,754		7,041		277		—
Commercial real estate	7,645		7,962		277		—
Commercial and industrial	461		480		1,401		680
Residential real estate	3,082		3,057		104		169
Home equity lines of credit	223		321		—		—
Consumer	120		92		16		1
Total originated loans	$	11,531	$	11,912	$	1,798	$	850
Acquired loans:
Commercial real estate, construction	$	—	$	—	$	—	$	—
Commercial real estate, other	573		469		2,486		2,425
Commercial real estate	573		469		2,486		2,425
Commercial and industrial	413		247		673		1,306
Residential real estate	906		798		1,603		1,353
Home equity lines of credit	150		98		184		35
Consumer	6		7		2		—
Total acquired loans	$	2,048	$	1,619	$	4,948	$	5,119
Total loans	$	13,579	$	13,531	$	6,746	$	5,969

The following table presents the aging of the recorded investment in past due loans:

	Loans Past Due								Current Loans		Total Loans
(Dollars in thousands)	30 - 59 days		60 - 89 days		90 + Days		Total
March 31, 2016
Originated loans:
Commercial real estate, construction	$	891	$	—	$	—	$	891	$	68,608	$	69,499
Commercial real estate, other	789		7,065		631		8,485		463,513		471,998
Commercial real estate	1,680		7,065		631		9,376		532,121		541,497
Commercial and industrial	852		275		1,490		2,617		306,032		308,649
Residential real estate	2,975		1,063		1,094		5,132		297,380		302,512
Home equity lines of credit	84		147		58		289		76,670		76,959
Consumer	943		204		46		1,193		244,403		245,596
Deposit account overdrafts	—		—		—		—		2,083		2,083
Total originated loans	$	6,534	$	8,754	$	3,319	$	18,607	$	1,458,689	$	1,477,296
Acquired loans:
Commercial real estate, construction	$	95	$	—	$	40	$	135	$	11,747	$	11,882
Commercial real estate, other	618		206		2,961		3,785		252,416		256,201
Commercial real estate	713		206		3,001		3,920		264,163		268,083
Commercial and industrial	70		115		954		1,139		58,022		59,161
Residential real estate	6,278		699		2,080		9,057		254,180		263,237
Home equity lines of credit	81		—		296		377		30,365		30,742
Consumer	31		9		2		42		6,554		6,596
Deposit account overdrafts	—		—		—		—		—		—
Total acquired loans	$	7,173	$	1,029	$	6,333	$	14,535	$	613,284	$	627,819
Total loans	$	13,707	$	9,783	$	9,652	$	33,142	$	2,071,973	$	2,105,115
December 31, 2015
Originated loans:
Commercial real estate, construction	$	913	$	—	$	8	$	921	$	62,864	$	63,785
Commercial real estate, other	7,260		1,258		379		8,897		462,287		471,184
Commercial real estate	8,173		1,258		387		9,818		525,151		534,969
Commercial and industrial	1,437		215		767		2,419		285,711		288,130
Residential real estate	3,124		1,105		1,263		5,492		283,291		288,783
Home equity lines of credit	161		7		104		272		73,904		74,176
Consumer	1,387		250		32		1,669		225,464		227,133
Deposit account overdrafts	—		—		—		—		1,448		1,448
Total originated loans	$	14,282	$	2,835	$	2,553	$	19,670	$	1,394,969	$	1,414,639
Acquired loans:
Commercial real estate, construction	$	—	$	—	$	40	$	40	$	12,074	$	12,114
Commercial real estate, other	1,592		352		2,730		4,674		260,418		265,092
Commercial real estate	1,592		352		2,770		4,714		272,492		277,206
Commercial and industrial	177		232		1,553		1,962		61,627		63,589
Residential real estate	4,910		2,480		1,745		9,135		267,637		276,772
Home equity lines of credit	318		20		95		433		31,820		32,253
Consumer	90		31		—		121		7,860		7,981
Deposit account overdrafts	—		—		—		—		—		—
Total acquired loans	$	7,087	$	3,115	$	6,163	$	16,365	$	641,436	$	657,801
Total loans	$	21,369	$	5,950	$	8,716	$	36,035	$	2,036,405	$	2,072,440

Credit Quality Indicators

As discussed in Note 1 of the Notes to the Consolidated Financial Statements included in Peoples' 2015 Form 10-K, Peoples categorizes the majority of its loans into risk categories based upon an established risk grading matrix using a scale of 1 to 8. A description of the general characteristics of the risk grades used by Peoples is as follows:

“Pass” (grades 1 through 4): Loans in this risk category involve borrowers of acceptable-to-strong credit quality and risk who have the apparent ability to satisfy their loan obligations. Loans in this risk grade would possess sufficient mitigating factors, such as adequate collateral or strong guarantors possessing the capacity to repay the loan if required, for any weakness that may exist.

“Watch” (grade 5): Loans in this risk grade are the equivalent of the regulatory definition of “Other Assets Especially Mentioned” classification. Loans in this category possess some credit deficiency or potential weakness, which requires a high level of management attention. Potential weaknesses include declining trends in operating earnings and cash flows and/or reliance on the secondary source of repayment. If left uncorrected, these potential weaknesses may result in noticeable deterioration of the repayment prospects for the loan or in Peoples' credit position.

“Substandard” (grade 6): Loans in this risk grade are inadequately protected by the borrower's current financial condition and payment capability or of the collateral pledged, if any. Loans so classified have one or more well-defined weaknesses that jeopardize the orderly repayment of the loan. They are characterized by the distinct possibility that Peoples will sustain some loss if the deficiencies are not corrected.

“Doubtful” (grade 7): Loans in this risk grade have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or orderly repayment in full, on the basis of current existing facts, conditions and values, highly questionable and improbable. Possibility of loss is extremely high, but because of certain important and reasonably specific factors that may work to the advantage and strengthening of the exposure, its classification as an estimated loss is deferred until its more exact status may be determined.

“Loss” (grade 8):Loans in this risk grade are considered to be non-collectible and of such little value that their continuance as bankable assets is not warranted. This does not mean the loan has absolutely no recovery value, but rather it is neither practical nor desirable to defer writing off the loan, even though partial recovery may be obtained in the future. Charge-offs against the allowance for loan losses are taken in the period in which the loan becomes uncollectible. Consequently, Peoples typically does not maintain a recorded investment in loans within this category.

Consumer loans and other smaller-balance loans are evaluated and categorized as “substandard”, “doubtful” or “loss” based upon the regulatory definition of these classes and consistent with regulatory requirements. All other loans not evaluated individually, nor meeting the regulatory conditions to be categorized as described above, would be considered as being “not rated”.

The following table summarizes the risk category of Peoples' loan portfolio based upon the most recent analysis performed:

	Pass Rated (Grades 1 - 4)		Watch (Grade 5)		Substandard (Grade 6)		Doubtful (Grade 7)		Not Rated		Total Loans
(Dollars in thousands)
March 31, 2016
Originated loans:
Commercial real estate, construction	$	67,813	$	—	$	891	$	—	$	795	$	69,499
Commercial real estate, other	442,631		13,209		16,158		—		—		471,998
Commercial real estate	510,444		13,209		17,049		—		795		541,497
Commercial and industrial	269,170		32,857		6,618		—		4		308,649
Residential real estate	21,766		1,176		12,184		200		267,186		302,512
Home equity lines of credit	780		—		170		—		76,009		76,959
Consumer	215		—		2		—		245,379		245,596
Deposit account overdrafts	—		—		—		—		2,083		2,083
Total originated loans	$	802,375	$	47,242	$	36,023	$	200	$	591,456	$	1,477,296
Acquired loans:
Commercial real estate, construction	$	11,882	$	—	$	—	$	—	$	—	$	11,882
Commercial real estate, other	224,941		13,924		17,262		74		—		256,201
Commercial real estate	236,823		13,924		17,262		74		—		268,083
Commercial and industrial	56,978		123		1,732		328		—		59,161
Residential real estate	18,596		670		1,790		—		242,181		263,237
Home equity lines of credit	322		—		—		—		30,420		30,742
Consumer	236		—		—		—		6,360		6,596
Deposit account overdrafts	—		—		—		—		—		—
Total acquired loans	$	312,955	$	14,717	$	20,784	$	402	$	278,961	$	627,819
Total loans	$	1,115,330	$	61,959	$	56,807	$	602	$	870,417	$	2,105,115
December 31, 2015
Originated loans:
Commercial real estate, construction	$	62,225	$	—	$	913	$	—	$	647	$	63,785
Commercial real estate, other	434,868		18,710		17,595		—		11		471,184
Commercial real estate	497,093		18,710		18,508		—		658		534,969
Commercial and industrial	259,183		23,601		5,344		—		2		288,130
Residential real estate	21,903		1,168		12,282		187		253,243		288,783
Home equity lines of credit	785		—		175		—		73,216		74,176
Consumer	208		—		3		—		226,922		227,133
Deposit account overdrafts	—		—		—		—		1,448		1,448
Total originated loans	$	779,172	$	43,479	$	36,312	$	187	$	555,489	$	1,414,639
Acquired loans:
Commercial real estate, construction	$	12,114	$	—	$	—	$	—	$	—	$	12,114
Commercial real estate, other	233,630		13,866		17,521		75		—		265,092
Commercial real estate	245,744		13,866		17,521		75		—		277,206
Commercial and industrial	56,077		3,078		4,238		196		—		63,589
Residential real estate	18,027		1,409		1,786		—		255,550		276,772
Home equity lines of credit	316		—		—		—		31,937		32,253
Consumer	256		—		—		—		7,725		7,981
Deposit account overdrafts	—		—		—		—		—		—
Total acquired loans	$	320,420	$	18,353	$	23,545	$	271	$	295,212	$	657,801
Total loans	$	1,099,592	$	61,832	$	59,857	$	458	$	850,701	$	2,072,440

Impaired Loans

The following table summarizes loans classified as impaired:

	Unpaid Principal Balance		Recorded Investment				Total Recorded Investment				Average Recorded Investment		Interest Income Recognized
			With Allowance		Without Allowance				Related Allowance
(Dollars in thousands)
March 31, 2016
Commercial real estate, construction	$	945	$	—	$	935	$	935	$	—	$	946	$	1
Commercial real estate, other	24,586		6,508		14,482		20,990		1,294		21,035		235
Commercial real estate	$	25,531	$	6,508	$	15,417	$	21,925	$	1,294	$	21,981	$	236
Commercial and industrial	5,106		2,036		1,424		3,460		453		3,376		51
Residential real estate	32,777		367		30,148		30,515		103		29,604		385
Home equity lines of credit	1,024		—		1,017		1,017		—		718		12
Consumer	464		—		376		376		—		322		8
Total	$	64,902	$	8,911	$	48,382	$	57,293	$	1,850	$	56,001	$	692
December 31, 2015
Commercial real estate, construction	$	957	$	—	$	957	$	957	$	—	$	227	$	3
Commercial real estate, other	23,430		6,396		12,775		19,171		1,363		13,071		815
Commercial real estate	$	24,387	$	6,396	$	13,732	$	20,128	$	1,363	$	13,298	$	818
Commercial and industrial	5,670		1,224		4,130		5,354		351		4,049		246
Residential real estate	31,304		370		28,834		29,204		106		26,785		1,354
Home equity lines of credit	425		—		419		419		—		325		18
Consumer	383		—		298		298		—		295		28
Total	$	62,169	$	7,990	$	47,413	$	55,403	$	1,820	$	44,752	$	2,464

At March 31, 2016, Peoples' impaired loans shown in the table above included loans that were classified as troubled debt restructurings ("TDRs").

In assessing whether or not a borrower is experiencing financial difficulties, Peoples considers information currently available regarding the financial condition of the borrower. This information includes, but is not limited to, whether (i) the borrower is currently in payment default on any of the borrower's debt; (ii) a payment default is probable in the foreseeable future without the modification; (iii) the borrower has declared or is in the process of declaring bankruptcy; and (iv) the borrower's projected cash flow is insufficient to satisfy contractual payments due under the original terms of the loan without a modification.

Peoples considers all aspects of the modification to loan terms to determine whether or not a concession has been granted to the borrower. Key factors considered by Peoples include the borrower's ability to access funds at a market rate for debt with similar risk characteristics, the significance of the modification relative to the unpaid principal balance or collateral value of the debt, and the significance of a delay in the timing of payments relative to the original contractual terms of the loan. The most common concessions granted by Peoples generally include one or more modifications to the terms of the loan, such as (i) a reduction in the interest rate for the remaining life of the loan, (ii) an extension of the maturity date at an interest rate lower than the current market rate for new loans with similar risk, (iii) a temporary period of interest-only payments, and (iv) a reduction in the contractual payment amount for either a short period or the remaining term of the loan.

The following table summarizes the loans that were modified as a TDR during the three months ended March 31:

		Three Months Ended
		Recorded Investment (1)
(Dollars in thousands)	Number of Contracts	Pre-Modification		Post-Modification		Remaining Recorded Investment
March 31, 2016
Originated loans:
Commercial and industrial	4	$	701	$	701	$	703
Residential real estate	2	83		83		83
Consumer	5	46		46		46
Total originated loans	11	$	830	$	830	$	832
Acquired loans:
Home equity lines of credit	1	$	12	$	12	$	12
Residential real estate	6	399		401		400
Consumer	2	4		4		4
Total acquired loans	9	$	415	$	417	$	416
March 31, 2015
Originated loans:
Home equity lines of credit	5	$	217	$	217	$	217
Consumer	1	3		3		3
Total originated loans	6	$	220	$	220	$	220
Acquired loans:
Residential real estate	4	$	419	$	419	$	419
Total acquired loans	4	$	419	$	419	$	419
(1) The amounts shown are inclusive of all partial paydowns and charge-offs. Loans modified in a TDR that were fully paid down, charged-off or foreclosed upon by period end are not reported.

Peoples did not have any originated and acquired loans that were modified as a TDR during the last twelve months that subsequently defaulted. Peoples had no additional commitments to lend additional funds to the related debtors whose terms have been modified in a TDR.

Allowance for Originated Loan Losses

Changes in the allowance for originated loan losses for the three months ended March 31, were as follows:

(Dollars in thousands)	Commercial Real Estate			Commercial and Industrial			Residential Real Estate			Home Equity Lines of Credit			Consumer			Deposit Account Overdrafts			Total
Balance, January 1, 2016	$	7,076		$	5,382		$	1,257		$	732		$	1,971		$	121		$	16,539
Charge-offs	—			(1,012		)	(150		)	(10		)	(622		)	(163		)	(1,957		)
Recoveries	1,164			—			29			7			260			70			1,530
Net recoveries (charge-offs)	1,164			(1,012		)	(121		)	(3		)	(362		)	(93		)	(427		)
(Recovery of) provision for loan losses	(748		)	925			122			4			547			97			947
Balance, March 31, 2016	$	7,492		$	5,295		$	1,258		$	733		$	2,156		$	125		$	17,059
Period-end amount allocated to:
Loans individually evaluated for impairment	$	1,294		$	453		$	103		$	—		$	—		$	—		$	1,850
Loans collectively evaluated for impairment	6,198			4,842			1,155			733			2,156			125			15,209
Ending balance	$	7,492		$	5,295		$	1,258		$	733		$	2,156		$	125		$	17,059
Balance, January 1, 2015	$	9,825		$	4,036		$	1,627		$	694		$	1,587		$	112		$	17,881
Charge-offs	(10		)	—			(186		)	(58		)	(187		)	(143		)	(584		)
Recoveries	55			13			115			15			186			58			442
Net recoveries (charge-offs)	45			13			(71		)	(43		)	(1		)	(85		)	(142		)
(Recovery of) provision for loan losses	(796		)	1,059			4			57			(74		)	100			350
Balance, March 31, 2015	$	9,074		$	5,108		$	1,560		$	708		$	1,512		$	127		$	18,089
Period-end amount allocated to:
Loans individually evaluated for impairment	$	189		$	527		$	9		$	—		$	—		$	—		$	725
Loans collectively evaluated for impairment	8,885			4,581			1,551			708			1,512			127			17,364
Ending balance	$	9,074		$	5,108		$	1,560		$	708		$	1,512		$	127		$	18,089

The recovery of provision for loan losses recorded for originated commercial real estate loans during the first quarter of 2016 was due primarily to the recovery of originated loan losses during the first three months of 2016. The increase in provision for originated commercial and industrial loans during 2016 was primarily related to loan growth. The changes in the residential real estate, home equity lines of credit and consumer categories of the allowance for originated loan losses and the related provision for originated loan losses recorded during 2016 were driven by net charge-off activity and increases in the size of the respective loan portfolios.

Allowance for Acquired Loan Losses

Acquired loans are recorded at their fair value as of the acquisition date with no valuation allowance, and monitored for changes in credit quality and subsequent increases or decreases in expected cash flows. Decreases in expected cash flows of acquired credit impaired loans are recognized as an impairment, with the amount of the expected loss included in management's evaluation of the appropriateness of the allowance for loan losses. The methods utilized to estimate the required allowance for loan losses for nonimpaired acquired loans are similar to those utilized for originated loans; however, Peoples records a provision for loan losses only when the computed allowance exceeds the remaining fair value adjustment. As of March 31, 2016, the expected cash flows for both nonimpaired acquired loans and acquired credit impaired loans had decreased from those as of the respective acquisition dates, resulting in Peoples recording provision for loan losses with respect to those acquired loans.

The following table presents activity in the allowance for loan losses for acquired loans for the three months ended March 31:

	Three Months Ended
(Dollars in thousands)	March 31, 2016			March 31, 2015
Purchased credit impaired loans:
Balance, January 1	$	240		$	—
Charge-offs	(46		)	—
Recoveries	—			—
Net charge-offs	(46		)	—
Provision for loan losses	8			—
Balance, March 31	$	202		$	—

Schedule of Financing Receivables, Type

The major classifications of loan balances, excluding loans held for sale, were as follows:

(Dollars in thousands)	March 31, 2016		December 31, 2015
Originated loans:
Commercial real estate, construction	$	69,499	$	63,785
Commercial real estate, other	471,998		471,184
Commercial real estate	541,497		534,969
Commercial and industrial	308,649		288,130
Residential real estate	302,512		288,783
Home equity lines of credit	76,959		74,176
Consumer	245,596		227,133
Deposit account overdrafts	2,083		1,448
Total originated loans	$	1,477,296	$	1,414,639
Acquired loans:
Commercial real estate, construction	$	11,882	$	12,114
Commercial real estate, other	256,201		265,092
Commercial real estate	268,083		277,206
Commercial and industrial	59,161		63,589
Residential real estate	263,237		276,772
Home equity lines of credit	30,742		32,253
Consumer	6,596		7,981
Deposit account overdrafts	—		—
Total acquired loans	$	627,819	$	657,801
Loans, net of deferred fees and costs	$	2,105,115	$	2,072,440

Schedule of Financing Receivables Acquired with Deteriorated Credit Quality

Peoples has acquired various loans through business combinations for which there was, at acquisition, evidence of deterioration of credit quality since origination, and for which it was probable that all contractually required payments would not be collected. The carrying amounts of these loans included in the loan balances above are summarized as follows:

(Dollars in thousands)	March 31, 2016		December 31, 2015
Commercial real estate, other	$	16,636	$	16,893
Commercial and industrial	2,866		3,040
Residential real estate	26,210		27,155
Consumer	168		193
Total outstanding balance	$	45,880	$	47,281
Net carrying amount	$	33,637	$	35,064

Certain Loans Acquired In Transfer Not Accounted For As Debt Securities Accretable Yield

Changes in the accretable yield for purchased credit impaired loans for the three months ended March 31, 2016 were as follows:

(Dollars in thousands)	Accretable Yield
Balance, December 31, 2015	$	7,042
Reclassification from nonaccretable to accretable	1,916
Accretion	(491		)
Balance, March 31, 2016	$	8,467

Nonaccrual and Past Due Loans

The recorded investments in loans on nonaccrual status and loans delinquent for 90 days or more and accruing were as follows:

	Nonaccrual Loans				Loans 90+ Days Past Due and Accruing
(Dollars in thousands)	March 31, 2016		December 31, 2015		March 31, 2016		December 31, 2015
Originated loans:
Commercial real estate, construction	$	891	$	921	$	—	$	—
Commercial real estate, other	6,754		7,041		277		—
Commercial real estate	7,645		7,962		277		—
Commercial and industrial	461		480		1,401		680
Residential real estate	3,082		3,057		104		169
Home equity lines of credit	223		321		—		—
Consumer	120		92		16		1
Total originated loans	$	11,531	$	11,912	$	1,798	$	850
Acquired loans:
Commercial real estate, construction	$	—	$	—	$	—	$	—
Commercial real estate, other	573		469		2,486		2,425
Commercial real estate	573		469		2,486		2,425
Commercial and industrial	413		247		673		1,306
Residential real estate	906		798		1,603		1,353
Home equity lines of credit	150		98		184		35
Consumer	6		7		2		—
Total acquired loans	$	2,048	$	1,619	$	4,948	$	5,119
Total loans	$	13,579	$	13,531	$	6,746	$	5,969

Aging Of The Recorded Investment In Past Due Loans And Leases

The following table presents the aging of the recorded investment in past due loans:

	Loans Past Due								Current Loans		Total Loans
(Dollars in thousands)	30 - 59 days		60 - 89 days		90 + Days		Total
March 31, 2016
Originated loans:
Commercial real estate, construction	$	891	$	—	$	—	$	891	$	68,608	$	69,499
Commercial real estate, other	789		7,065		631		8,485		463,513		471,998
Commercial real estate	1,680		7,065		631		9,376		532,121		541,497
Commercial and industrial	852		275		1,490		2,617		306,032		308,649
Residential real estate	2,975		1,063		1,094		5,132		297,380		302,512
Home equity lines of credit	84		147		58		289		76,670		76,959
Consumer	943		204		46		1,193		244,403		245,596
Deposit account overdrafts	—		—		—		—		2,083		2,083
Total originated loans	$	6,534	$	8,754	$	3,319	$	18,607	$	1,458,689	$	1,477,296
Acquired loans:
Commercial real estate, construction	$	95	$	—	$	40	$	135	$	11,747	$	11,882
Commercial real estate, other	618		206		2,961		3,785		252,416		256,201
Commercial real estate	713		206		3,001		3,920		264,163		268,083
Commercial and industrial	70		115		954		1,139		58,022		59,161
Residential real estate	6,278		699		2,080		9,057		254,180		263,237
Home equity lines of credit	81		—		296		377		30,365		30,742
Consumer	31		9		2		42		6,554		6,596
Deposit account overdrafts	—		—		—		—		—		—
Total acquired loans	$	7,173	$	1,029	$	6,333	$	14,535	$	613,284	$	627,819
Total loans	$	13,707	$	9,783	$	9,652	$	33,142	$	2,071,973	$	2,105,115
December 31, 2015
Originated loans:
Commercial real estate, construction	$	913	$	—	$	8	$	921	$	62,864	$	63,785
Commercial real estate, other	7,260		1,258		379		8,897		462,287		471,184
Commercial real estate	8,173		1,258		387		9,818		525,151		534,969
Commercial and industrial	1,437		215		767		2,419		285,711		288,130
Residential real estate	3,124		1,105		1,263		5,492		283,291		288,783
Home equity lines of credit	161		7		104		272		73,904		74,176
Consumer	1,387		250		32		1,669		225,464		227,133
Deposit account overdrafts	—		—		—		—		1,448		1,448
Total originated loans	$	14,282	$	2,835	$	2,553	$	19,670	$	1,394,969	$	1,414,639
Acquired loans:
Commercial real estate, construction	$	—	$	—	$	40	$	40	$	12,074	$	12,114
Commercial real estate, other	1,592		352		2,730		4,674		260,418		265,092
Commercial real estate	1,592		352		2,770		4,714		272,492		277,206
Commercial and industrial	177		232		1,553		1,962		61,627		63,589
Residential real estate	4,910		2,480		1,745		9,135		267,637		276,772
Home equity lines of credit	318		20		95		433		31,820		32,253
Consumer	90		31		—		121		7,860		7,981
Deposit account overdrafts	—		—		—		—		—		—
Total acquired loans	$	7,087	$	3,115	$	6,163	$	16,365	$	641,436	$	657,801
Total loans	$	21,369	$	5,950	$	8,716	$	36,035	$	2,036,405	$	2,072,440

Loans By Risk Category

The following table summarizes the risk category of Peoples' loan portfolio based upon the most recent analysis performed:

	Pass Rated (Grades 1 - 4)		Watch (Grade 5)		Substandard (Grade 6)		Doubtful (Grade 7)		Not Rated		Total Loans
(Dollars in thousands)
March 31, 2016
Originated loans:
Commercial real estate, construction	$	67,813	$	—	$	891	$	—	$	795	$	69,499
Commercial real estate, other	442,631		13,209		16,158		—		—		471,998
Commercial real estate	510,444		13,209		17,049		—		795		541,497
Commercial and industrial	269,170		32,857		6,618		—		4		308,649
Residential real estate	21,766		1,176		12,184		200		267,186		302,512
Home equity lines of credit	780		—		170		—		76,009		76,959
Consumer	215		—		2		—		245,379		245,596
Deposit account overdrafts	—		—		—		—		2,083		2,083
Total originated loans	$	802,375	$	47,242	$	36,023	$	200	$	591,456	$	1,477,296
Acquired loans:
Commercial real estate, construction	$	11,882	$	—	$	—	$	—	$	—	$	11,882
Commercial real estate, other	224,941		13,924		17,262		74		—		256,201
Commercial real estate	236,823		13,924		17,262		74		—		268,083
Commercial and industrial	56,978		123		1,732		328		—		59,161
Residential real estate	18,596		670		1,790		—		242,181		263,237
Home equity lines of credit	322		—		—		—		30,420		30,742
Consumer	236		—		—		—		6,360		6,596
Deposit account overdrafts	—		—		—		—		—		—
Total acquired loans	$	312,955	$	14,717	$	20,784	$	402	$	278,961	$	627,819
Total loans	$	1,115,330	$	61,959	$	56,807	$	602	$	870,417	$	2,105,115
December 31, 2015
Originated loans:
Commercial real estate, construction	$	62,225	$	—	$	913	$	—	$	647	$	63,785
Commercial real estate, other	434,868		18,710		17,595		—		11		471,184
Commercial real estate	497,093		18,710		18,508		—		658		534,969
Commercial and industrial	259,183		23,601		5,344		—		2		288,130
Residential real estate	21,903		1,168		12,282		187		253,243		288,783
Home equity lines of credit	785		—		175		—		73,216		74,176
Consumer	208		—		3		—		226,922		227,133
Deposit account overdrafts	—		—		—		—		1,448		1,448
Total originated loans	$	779,172	$	43,479	$	36,312	$	187	$	555,489	$	1,414,639
Acquired loans:
Commercial real estate, construction	$	12,114	$	—	$	—	$	—	$	—	$	12,114
Commercial real estate, other	233,630		13,866		17,521		75		—		265,092
Commercial real estate	245,744		13,866		17,521		75		—		277,206
Commercial and industrial	56,077		3,078		4,238		196		—		63,589
Residential real estate	18,027		1,409		1,786		—		255,550		276,772
Home equity lines of credit	316		—		—		—		31,937		32,253
Consumer	256		—		—		—		7,725		7,981
Deposit account overdrafts	—		—		—		—		—		—
Total acquired loans	$	320,420	$	18,353	$	23,545	$	271	$	295,212	$	657,801
Total loans	$	1,099,592	$	61,832	$	59,857	$	458	$	850,701	$	2,072,440

Schedule Of Impaired Loans

The following table summarizes loans classified as impaired:

	Unpaid Principal Balance		Recorded Investment				Total Recorded Investment				Average Recorded Investment		Interest Income Recognized
			With Allowance		Without Allowance				Related Allowance
(Dollars in thousands)
March 31, 2016
Commercial real estate, construction	$	945	$	—	$	935	$	935	$	—	$	946	$	1
Commercial real estate, other	24,586		6,508		14,482		20,990		1,294		21,035		235
Commercial real estate	$	25,531	$	6,508	$	15,417	$	21,925	$	1,294	$	21,981	$	236
Commercial and industrial	5,106		2,036		1,424		3,460		453		3,376		51
Residential real estate	32,777		367		30,148		30,515		103		29,604		385
Home equity lines of credit	1,024		—		1,017		1,017		—		718		12
Consumer	464		—		376		376		—		322		8
Total	$	64,902	$	8,911	$	48,382	$	57,293	$	1,850	$	56,001	$	692
December 31, 2015
Commercial real estate, construction	$	957	$	—	$	957	$	957	$	—	$	227	$	3
Commercial real estate, other	23,430		6,396		12,775		19,171		1,363		13,071		815
Commercial real estate	$	24,387	$	6,396	$	13,732	$	20,128	$	1,363	$	13,298	$	818
Commercial and industrial	5,670		1,224		4,130		5,354		351		4,049		246
Residential real estate	31,304		370		28,834		29,204		106		26,785		1,354
Home equity lines of credit	425		—		419		419		—		325		18
Consumer	383		—		298		298		—		295		28
Total	$	62,169	$	7,990	$	47,413	$	55,403	$	1,820	$	44,752	$	2,464

Troubled Debt Restructurings on Financing Receivables

The following table summarizes the loans that were modified as a TDR during the three months ended March 31:

		Three Months Ended
		Recorded Investment (1)
(Dollars in thousands)	Number of Contracts	Pre-Modification		Post-Modification		Remaining Recorded Investment
March 31, 2016
Originated loans:
Commercial and industrial	4	$	701	$	701	$	703
Residential real estate	2	83		83		83
Consumer	5	46		46		46
Total originated loans	11	$	830	$	830	$	832
Acquired loans:
Home equity lines of credit	1	$	12	$	12	$	12
Residential real estate	6	399		401		400
Consumer	2	4		4		4
Total acquired loans	9	$	415	$	417	$	416
March 31, 2015
Originated loans:
Home equity lines of credit	5	$	217	$	217	$	217
Consumer	1	3		3		3
Total originated loans	6	$	220	$	220	$	220
Acquired loans:
Residential real estate	4	$	419	$	419	$	419
Total acquired loans	4	$	419	$	419	$	419
(1) The amounts shown are inclusive of all partial paydowns and charge-offs. Loans modified in a TDR that were fully paid down, charged-off or foreclosed upon by period end are not reported.

Troubled Debt Restructurings during prior 12 months that subsequently defaulted

Summary Of Activity In Allowance For Loan And Lease Losses

Changes in the allowance for originated loan losses for the three months ended March 31, were as follows:

(Dollars in thousands)	Commercial Real Estate			Commercial and Industrial			Residential Real Estate			Home Equity Lines of Credit			Consumer			Deposit Account Overdrafts			Total
Balance, January 1, 2016	$	7,076		$	5,382		$	1,257		$	732		$	1,971		$	121		$	16,539
Charge-offs	—			(1,012		)	(150		)	(10		)	(622		)	(163		)	(1,957		)
Recoveries	1,164			—			29			7			260			70			1,530
Net recoveries (charge-offs)	1,164			(1,012		)	(121		)	(3		)	(362		)	(93		)	(427		)
(Recovery of) provision for loan losses	(748		)	925			122			4			547			97			947
Balance, March 31, 2016	$	7,492		$	5,295		$	1,258		$	733		$	2,156		$	125		$	17,059
Period-end amount allocated to:
Loans individually evaluated for impairment	$	1,294		$	453		$	103		$	—		$	—		$	—		$	1,850
Loans collectively evaluated for impairment	6,198			4,842			1,155			733			2,156			125			15,209
Ending balance	$	7,492		$	5,295		$	1,258		$	733		$	2,156		$	125		$	17,059
Balance, January 1, 2015	$	9,825		$	4,036		$	1,627		$	694		$	1,587		$	112		$	17,881
Charge-offs	(10		)	—			(186		)	(58		)	(187		)	(143		)	(584		)
Recoveries	55			13			115			15			186			58			442
Net recoveries (charge-offs)	45			13			(71		)	(43		)	(1		)	(85		)	(142		)
(Recovery of) provision for loan losses	(796		)	1,059			4			57			(74		)	100			350
Balance, March 31, 2015	$	9,074		$	5,108		$	1,560		$	708		$	1,512		$	127		$	18,089
Period-end amount allocated to:
Loans individually evaluated for impairment	$	189		$	527		$	9		$	—		$	—		$	—		$	725
Loans collectively evaluated for impairment	8,885			4,581			1,551			708			1,512			127			17,364
Ending balance	$	9,074		$	5,108		$	1,560		$	708		$	1,512		$	127		$	18,089

Allowance for Loan Losses Acquired Loans [Table Text Block]

	Three Months Ended
(Dollars in thousands)	March 31, 2016			March 31, 2015
Purchased credit impaired loans:
Balance, January 1	$	240		$	—
Charge-offs	(46		)	—
Recoveries	—			—
Net charge-offs	(46		)	—
Provision for loan losses	8			—
Balance, March 31	$	202		$	—