Investment Securities (Tables)

9 Months Ended

Sep. 30, 2017

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, 2017
Obligations of:
States and political subdivisions	$	102,415	$	2,343	$	(198	)	$	104,560
Residential mortgage-backed securities	676,576		3,965		(8,435		)	672,106
Commercial mortgage-backed securities	7,105		40		(17		)	7,128
Bank-issued trust preferred securities	5,188		147		(181		)	5,154
Equity securities	1,526		6,611		(64		)	8,073
Total available-for-sale securities	$	792,810	$	13,106	$	(8,895	)	$	797,021
December 31, 2016
Obligations of:
U.S. government sponsored agencies	$	1,000	$	—	$	—		$	1,000
States and political subdivisions	115,657		1,836		(263		)	117,230
Residential mortgage-backed securities	633,802		3,758		(10,993		)	626,567
Commercial mortgage-backed securities	19,337		41		(87		)	19,291
Bank-issued trust preferred securities	5,169		91		(361		)	4,899
Equity securities	2,052		6,969		(68		)	8,953
Total available-for-sale securities	$	777,017	$	12,695	$	(11,772	)	$	777,940

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)	2017		2016			2017		2016
Gross gains realized	$	1,877	$	—		$	2,235	$	863
Gross losses realized	16		1			16		1
Net gain (loss) realized	$	1,861	$	(1	)	$	2,219	$	862

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, 2017
Obligations of:
States and political subdivisions	$	7,622	$	62	6	$	3,957	$	136	1	$	11,579	$	198
Residential mortgage-backed securities	300,639		3,348		77	163,685		5,087		51	464,324		8,435
Commercial mortgage-backed securities	3,875		17		2	—		—		—	3,875		17
Bank-issued trust preferred securities	—		—		—	2,818		181		3	2,818		181
Equity securities	—		—		—	112		64		1	112		64
Total	$	312,136	$	3,427	85	$	170,572	$	5,468	56	$	482,708	$	8,895
December 31, 2016
Obligations of:
States and political subdivisions	$	23,501	$	263	28	$	—	$	—	—	$	23,501	$	263
Residential mortgage-backed securities	427,088		8,495		108	46,631		2,498		22	473,719		10,993
Commercial mortgage-backed securities	7,770		87		4	—		—		—	7,770		87
Bank-issued trust preferred securities	—		—		—	2,637		361		3	2,637		361
Equity securities	263		3		1	110		65		1	373		68
Total	$	458,622	$	8,848	141	$	49,378	$	2,924	26	$	508,000	$	11,772

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, 2017
Obligations of:
States and political subdivisions	$	3,812	$	651	$	—		$	4,463
Residential mortgage-backed securities	33,648		448		(406		)	33,690
Commercial mortgage-backed securities	4,703		—		(48		)	4,655
Total held-to-maturity securities	$	42,163	$	1,099	$	(454	)	$	42,808
December 31, 2016
Obligations of:
States and political subdivisions	$	3,820	$	221	$	—		$	4,041
Residential mortgage-backed securities	33,858		432		(528		)	33,762
Commercial mortgage-backed securities	5,466		—		(42		)	5,424
Total held-to-maturity securities	$	43,144	$	653	$	(570	)	$	43,227

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, 2017.  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	$	995		$	11,339		$	28,293		$	61,788		$	102,415
Residential mortgage-backed securities	13			15,029			37,213			624,321			676,576
Commercial mortgage-backed securities	—			5,725			—			1,380			7,105
Bank-issued trust preferred securities	—			—			2,190			2,998			5,188
Equity securities													1,526
Total available-for-sale securities	$	1,008		$	32,093		$	67,696		$	690,487		$	792,810
Fair value
Obligations of:
States and political subdivisions	$	1,002		$	11,451		$	28,743		$	63,364		$	104,560
Residential mortgage-backed securities	13			14,998			37,274			619,821			672,106
Commercial mortgage-backed securities	—			5,762			—			1,366			7,128
Bank-issued trust preferred securities	—			—			2,337			2,817			5,154
Equity securities													8,073
Total available-for-sale securities	$	1,015		$	32,211		$	68,354		$	687,368		$	797,021
Total weighted-average yield	3.48		%	3.61		%	3.55		%	3.36		%	3.39		%

Held-to-maturity 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 held-to-maturity securities by contractual maturity at September 30, 2017.  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	$	—		$	314		$	2,980		$	518		$	3,812
Residential mortgage-backed securities	—			450			6,379			26,819			33,648
Commercial mortgage-backed securities	—			—			—			4,703			4,703
Total held-to-maturity securities	$	—		$	764		$	9,359		$	32,040		$	42,163
Fair value
Obligations of:
States and political subdivisions	$	—		$	320		$	3,598		$	545		$	4,463
Residential mortgage-backed securities	—			452			6,508			26,730			33,690
Commercial mortgage-backed securities	—			—			—			4,655			4,655
Total held-to-maturity securities	$	—		$	772		$	10,106		$	31,930		$	42,808
Total weighted-average yield	—		%	4.18		%	3.10		%	4.01		%	3.81		%

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, 2017
Residential mortgage-backed securities	$	2,993	$	90	1	$	9,361	$	316	2	$	12,354	$	406
Commercial mortgage-backed securities	4,655		48		1	—		—		—	4,655		48
Total	$	7,648	$	138	2	$	9,361	$	316	2	$	17,009	$	454
December 31, 2016
Residential mortgage-backed securities	$	12,139	$	476	3	$	963	$	52	1	$	13,102	$	528
Commercial mortgage-backed securities	5,424		42		1	—		—		—	5,424		42
Total	$	17,563	$	518	4	$	963	$	52	1	$	18,526	$	570