10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.  20549

FORM 10-Q

(Mark One)

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

            For the quarterly period ended March 31, 2018

OR

o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

            For the transition period from ____ to ____

Commission File Number: 0-16772

PEOPLES BANCORP INC.
(Exact name of Registrant as specified in its charter)
Ohio		31-0987416
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)
138 Putnam Street, P.O. Box 738, Marietta, Ohio		45750
(Address of principal executive offices)		(Zip Code)
Registrant’s telephone number, including area code:		(740) 373-3155
	Not Applicable
	(Former name, former address and former fiscal year, if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x   No o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes x No  o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company or an emerging growth company.  See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer o Accelerated filer x Non-accelerated filer o (Do not check if a smaller reporting company) Smaller reporting company o Emerging growth company o

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o No  x

APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE PRECEDING FIVE YEARS:

Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court. Yes o No o

APPLICABLE ONLY TO CORPORATE ISSUERS:

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date:19,525,101 common shares, without par value, at April 25, 2018.

Table of Contents
PART I – FINANCIAL INFORMATION	3
ITEM 1.  FINANCIAL STATEMENTS	3
CONSOLIDATED BALANCE SHEETS at March 31, 2018 (Unaudited) and December 31, 2017	3
CONSOLIDATED STATEMENTS OF INCOME (Unaudited)	4
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited)	5
CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY (Unaudited)	6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)	7
NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS	8
ITEM 2.  MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	35
SELECTED FINANCIAL DATA	36
EXECUTIVE SUMMARY	40
RESULTS OF OPERATIONS	42
FINANCIAL CONDITION	53
ITEM 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	66
ITEM 4.  CONTROLS AND PROCEDURES	66
PART II – OTHER INFORMATION	67
ITEM 1.  LEGAL PROCEEDINGS	67
ITEM 1A.  RISK FACTORS	67
ITEM 2.  UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS	68
ITEM 3.  DEFAULTS UPON SENIOR SECURITIES	68
ITEM 4. MINE SAFETY DISCLOSURES	68
ITEM 5.  OTHER INFORMATION	68
ITEM 6.  EXHIBITS	68
SIGNATURES	71

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PART I

ITEM 1.  FINANCIAL STATEMENTS

PEOPLES BANCORP INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

	March 31, 2018			December 31, 2017
(Dollars in thousands)	(Unaudited)
Assets
Cash and due from banks	$	55,197		$	58,121
Interest-bearing deposits in other banks	17,432			14,073
Total cash and cash equivalents	72,629			72,194
Available-for-sale investment securities, at fair value (amortized cost of $808,689 at March 31, 2018 and $797,732 at December 31, 2017) (a)	790,910			795,187
Held-to-maturity investment securities, at amortized cost (fair value of $39,440 at March 31, 2018 and $41,213 at December 31, 2017)	39,651			40,928
Other investment securities (a)	46,756			38,371
Total investment securities	877,317			874,486
Loans, net of deferred fees and costs	2,402,328			2,357,137
Allowance for loan losses	(18,798		)	(18,793		)
Net loans	2,383,530			2,338,344
Loans held for sale	3,581			2,510
Bank premises and equipment, net	56,247			52,510
Bank owned life insurance	62,644			62,176
Goodwill	133,111			133,111
Other intangible assets	10,709			11,465
Other assets	35,161			34,890
Total assets	$	3,634,929		$	3,581,686
Liabilities
Deposits:
Non-interest-bearing	$	570,804		$	556,010
Interest-bearing	2,242,377			2,174,320
Total deposits	2,813,181			2,730,330
Short-term borrowings	203,475			209,491
Long-term borrowings	123,481			144,019
Accrued expenses and other liabilities	37,977			39,254
Total liabilities	3,178,114			3,123,094
Stockholders’ equity
Preferred stock, no par value, 50,000 shares authorized, no shares issued at March 31, 2018 and December 31, 2017	—			—
Common stock, no par value, 24,000,000 shares authorized, 18,956,838 shares issued at March 31, 2018 and 18,952,385 shares issued at December 31, 2017, including shares in treasury	344,233			345,412
Retained earnings (b)	143,297			134,362
Accumulated other comprehensive loss, net of deferred income taxes (b)	(16,062		)	(5,215		)
Treasury stock, at cost, 630,440 shares at March 31, 2018 and 702,449 shares at December 31, 2017	(14,653		)	(15,967		)
Total stockholders’ equity	456,815			458,592
Total liabilities and stockholders’ equity	$	3,634,929		$	3,581,686

(a) As of January 1, 2018, Peoples adopted ASU 2016-01, resulting in the reclassification of equity securities (including those held in participant accounts in the non-qualified deferred compensation plan) from available-for-sale investment securities to other investment securities. At December 31, 2017, $7.8 million of equity securities were included in available-for-sale investment securities, and at March 31, 2018, $8.4 million of equity securities were included in other investment securities.

(b) As of January 1, 2018, Peoples adopted ASU 2014-09 (which resulted in a reduction to retained earnings and an increase in other liabilities of $3.1 million, net of federal income taxes, to reflect uncompleted contracts in the initial application of the guidance) and ASU 2016-01 (which resulted in the reclassification of $5.0 million in net unrealized gains on equity securities from accumulated other comprehensive loss to retained earnings).

See Notes to the Unaudited Consolidated Financial Statements

3

PEOPLES BANCORP INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME (Unaudited)

	Three Months Ended
	March 31,
(Dollars in thousands, except per share data)	2018		2017
Interest income:
Interest and fees on loans	$	26,881	$	24,299
Interest and dividends on taxable investment securities	5,650		4,709
Interest on tax-exempt investment securities	643		794
Other interest income	52		15
Total interest income	33,226		29,817
Interest expense:
Interest on deposits	2,213		1,487
Interest on short-term borrowings	968		251
Interest on long-term borrowings	686		1,134
Total interest expense	3,867		2,872
Net interest income	29,359		26,945
Provision for loan losses	1,983		624
Net interest income after provision for loan losses	27,376		26,321
Non-interest income:
Insurance income	4,655		4,102
Trust and investment income	3,068		2,682
Electronic banking income	2,785		2,561
Deposit account service charges	2,120		2,429
Bank owned life insurance income	468		493
Mortgage banking income	351		387
Commercial loan swap fees	116		268
Net gain (loss) on asset disposals and other transactions	74		(3		)
Net gain on investment securities	1		340
Other non-interest income (a)	1,331		412
Total non-interest income	14,969		13,671
Non-interest expense:
Salaries and employee benefit costs	15,990		15,496
Net occupancy and equipment expense	2,866		2,713
Professional fees	1,718		1,610
Electronic banking expense	1,528		1,514
Data processing and software expense	1,322		1,142
Amortization of other intangible assets	754		863
Franchise tax expense	644		583
FDIC insurance expense	366		433
Communication expense	344		410
Marketing expense	325		280
Foreclosed real estate and other loan expenses	228		196
Other non-interest expense	2,136		2,091
Total non-interest expense	28,221		27,331
Income before income taxes	14,124		12,661
Income tax expense	2,383		3,852
Net income	$	11,741	$	8,809
Earnings per common share - basic	$	0.64	$	0.49
Earnings per common share - diluted	$	0.64	$	0.48
Weighted-average number of common shares outstanding - basic	18,126,089		18,029,991
Weighted-average number of common shares outstanding - diluted	18,256,035		18,192,957
Cash dividends declared	$	4,771	$	3,634
Cash dividends declared per common share	$	0.26	$	0.20

(a) As of January 1, 2018, Peoples adopted ASU 2016-01, resulting in a net gain of $460,000 during the 1st quarter of 2018.

See Notes to the Unaudited Consolidated Financial Statements

4

PEOPLES BANCORP INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited)

	Three Months Ended
	March 31,
(Dollars in thousands)	2018			2017
Net income	$	11,741		$	8,809
Other comprehensive income:
Available-for-sale investment securities:
Gross unrealized holding (loss) gain arising in the period	(10,113		)	3,412
Related tax benefit (expense)	2,124			(1,194		)
Less: reclassification adjustment for net gain included in net income	1			340
Related tax expense	—			(119		)
Amounts reclassified out of accumulated other comprehensive loss per ASU 2016-01 (a)	(5,020		)	—
Related tax benefit	1,054			—
Net effect on other comprehensive (loss) income	(11,956		)	1,997
Defined benefit plans:
Net gain arising during the period	—			1
Amortization of unrecognized loss and service cost on benefit plans	26			23
Related tax expense	(6		)	(8		)
Net effect on other comprehensive income	20			16
Cash flow hedges:
Net gain (loss) arising during the period	1,378			(103		)
Related tax (expense) benefit	(289		)	36
Net effect on other comprehensive income (loss)	1,089			(67		)
Total other comprehensive (loss) income, net of tax expense	(10,847		)	1,946
Total comprehensive income	$	894		$	10,755

(a) As of January 1, 2018, Peoples adopted ASU 2016-01, which resulted in the reclassification of $5.0 million in net unrealized gains

on equity securities from accumulated other comprehensive loss to retained earnings.

See Notes to the Unaudited Consolidated Financial Statements

5

CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY (Unaudited)

							Accumulated Other Comprehensive Loss						Total Stockholders' Equity
	Common Shares			Retained Earnings						Treasury Stock
(Dollars in thousands)
Balance, December 31, 2017	$	345,412		$	134,362		$	(5,215	)	$	(15,967	)	$	458,592
Amounts reclassified out of retained earnings net of tax per ASU 2014-09	—			(3,055		)	—			—			(3,055		)
Net income	—			11,741			—			—			11,741
Other comprehensive income, net of tax	—			5,020			(10,847		)	—			(5,827		)
Cash dividends declared	—			(4,771		)	—			—			(4,771		)
Exercise of stock appreciation rights	(3		)	—			—			3			—
Reissuance of treasury stock for common stock awards	(2,281		)	—			—			2,281			—
Reissuance of treasury stock for deferred compensation plan for Boards of Directors	—			—			—			2			2
Repurchase of treasury stock in connection with employee incentive plan and under compensation plan for Boards of Directors	—			—			—			(1,056		)	(1,056		)
Common shares issued under dividend reinvestment plan	161			—			—			—			161
Common shares issued under compensation plan for Boards of Directors	(84		)	—			—			84			—
Stock-based compensation expense	1,028			—			—			—			1,028
Balance, March 31, 2018	$	344,233		$	143,297		$	(16,062	)	$	(14,653	)	$	456,815

See Notes to the Unaudited Consolidated Financial Statements

6

PEOPLES BANCORP INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

	Three Months Ended
	March 31,
(Dollars in thousands)	2018			2017
Net cash provided by operating activities	$	11,669		$	13,508
Investing activities:
Available-for-sale investment securities:
Purchases	(44,359		)	(41,088		)
Proceeds from sales	—			555
Proceeds from principal payments, calls and prepayments	29,582			32,064
Held-to-maturity investment securities:
Purchases	—			(1,310		)
Proceeds from principal payments	1,184			336
Other investment securities:
Purchases	(198		)	—
Proceeds from sales	110			—
Net increase in loans	(46,404		)	(23,528		)
Net expenditures for bank premises and equipment	(1,476		)	(490		)
Proceeds from sales of (increase in) other real estate owned	104			(16		)
Business acquisitions, net of cash received	—			(450		)
Return of limited partnership and tax credit funds	1			634
Net cash used in investing activities	(61,456		)	(33,293		)
Financing activities:
Net increase in non-interest-bearing deposits	14,794			50,626
Net increase in interest-bearing deposits	68,050			141,809
Net decrease in short-term borrowings	(26,016		)	(199,855		)
Proceeds from long-term borrowings	—			30,000
Payments on long-term borrowings	(587		)	(701		)
Cash dividends paid	(4,741		)	(3,518		)
Repurchase of treasury stock in connection with employee incentive plan and compensation plan for Boards of Directors to be held as treasury stock	(1,056		)	(288		)
Proceeds from issuance of common shares	2			3
Contingent consideration payments made after a business combination	(224		)	(122		)
Net cash provided by financing activities	50,222			17,954
Net increase (decrease) in cash and cash equivalents	435			(1,831		)
Cash and cash equivalents at beginning of period	72,194			66,146
Cash and cash equivalents at end of period	$	72,629		$	64,315

See Notes to the Unaudited Consolidated Financial Statements

7

PEOPLES BANCORP INC. AND SUBSIDIARIES

NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

Note 1 Summary of Significant Accounting Policies

Basis of Presentation: The accompanying Unaudited Consolidated Financial Statements of Peoples Bancorp Inc. and its subsidiaries ("Peoples" refers to Peoples Bancorp Inc. and its consolidated subsidiaries collectively, except where the context indicates the reference relates solely to Peoples Bancorp Inc.) have been prepared in accordance with accounting principles generally accepted in the United States (“US GAAP”) for interim financial information and the instructions for Form 10-Q and Article 10 of Regulation S-X.  Accordingly, these financial statements do not contain all of the information and footnotes required by US GAAP for annual financial statements and should be read in conjunction with Peoples’ Annual Report on Form 10-K for the fiscal year ended December 31, 2017 (“Peoples' 2017 Form 10-K”).

The accounting and reporting policies followed in the presentation of the accompanying Unaudited Consolidated Financial Statements are consistent with those described in Note 1 of the Notes to the Consolidated Financial Statements included in Peoples’ 2017 Form 10-K, as updated by the information contained in this Form 10-Q.  Management has evaluated all significant events and transactions that occurred after March 31, 2018 for potential recognition or disclosure in these consolidated financial statements.  In the opinion of management, these consolidated financial statements reflect all adjustments necessary to present fairly such information for the periods and at the dates indicated.  Such adjustments are normal and recurring in nature.  Intercompany accounts and transactions have been eliminated.  The Consolidated Balance Sheet at December 31, 2017, contained herein, has been derived from the audited Consolidated Balance Sheet included in Peoples’ 2017 Form 10-K. 

The preparation of the consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes.  Results of operations for interim periods are not necessarily indicative of the results to be expected for the full year, due in part to seasonal variations and unusual or infrequently occurring items.

New Accounting Pronouncements: From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board ("FASB") or other standard setting bodies that are adopted by Peoples as of the required effective dates.

Accounting Standards Update ("ASU") 2018-05 - Income Taxes (Topic 740): Amendment to clarify situations where a registrant does not have the necessary information available, prepared, or analyzed in reasonable detail to complete the accounting under ASC 740 for certain income tax effects of the Tax Cuts and Jobs Act for the reporting period. As of December 31, 2017, Peoples partially completed the accounting for the tax effects of enactment of the Tax Cuts and Jobs Act; however, in certain cases, Peoples made reasonable estimates of the effects of a reduced federal corporate income tax rate on its existing deferred tax balances. In other cases, Peoples has not been able to make a reasonable estimate and continued to account for those items based on its existing accounting under ASC 740, and the provisions of the tax laws that were in effect immediately prior to enactment of the Tax Cuts and Jobs Act. In all cases, Peoples will continue to make and refine its calculations during the one-year re-measurement period as additional analysis is completed. In addition, these estimates may be affected as Peoples gains a more thorough understanding of the new tax reform legislation.

ASU 2018-04 - Investments - Debt Securities (Topic 320) and Regulated Operations (Topic 980): The amendment in this ASU adds, amends and supersedes various paragraphs that contain SEC guidance in ASC 320, Investments-Debt Securities and ASC 980, Regulated Operations. The amendments in this ASU are effective when a registrant adopts ASU 2016-01, which for Peoples, was January 1, 2018. This amendment is not expected to have an impact on Peoples' consolidated financial statements.

ASU 2018-02 - Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. Peoples early adopted ASU 2018-02, reclassifying income tax effects of the Tax Cuts and Jobs Act of $0.9 million from accumulated other comprehensive loss to retained earnings as of December 31, 2017.

ASU 2017-12 - Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities. The amendments in this ASU better align an entity’s risk management activities and financial reporting for hedging relationships through changes to both the designation and measurement guidance for qualifying hedging relationships, and the presentation of hedge results. To meet that objective, the amendments expand and refine hedge accounting for both nonfinancial and financial risk components, and align the recognition and presentation of the effects of the hedging instrument and the hedged

8

item in the financial statements. The amendments will be effective for interim and annual reporting periods beginning after December 15, 2018 (effective January 1, 2019 for Peoples). Peoples will adopt this new accounting guidance as required, and it is not expected to have a material impact on Peoples' consolidated financial statements.

ASU 2016-13 - Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. This accounting guidance replaces the current “incurred loss” model for recognizing credit losses with an “expected loss” model, referred to as the Current Expected Credit Loss (“CECL”) model. Under the CECL model, Peoples will be required to present certain financial assets carried at amortized cost, such as loans held-for-investment and held-to-maturity debt securities, at the net amount expected to be collected.

The measurement of expected credit losses is to be based on information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. This measurement will take place at the time the financial asset is first added to the balance sheet and periodically thereafter. This differs significantly from the “incurred loss” model required under current US GAAP, which delays recognition until it is probable a loss has been incurred. Accordingly, Peoples expects that the adoption of the CECL model will materially affect how the allowance for loan losses is determined and could require significant increases to the allowance for loan losses. Moreover, the CECL model may create more volatility in the level of Peoples' allowance for loan losses. If required to materially increase the level of allowance for loan losses for any reason, such increase could adversely affect Peoples' business, financial condition and results of operations.

The new CECL standard will become effective for interim and annual reporting periods beginning after December 15, 2019 (effective January 1, 2020 for Peoples). Peoples is currently evaluating the impact that the CECL model will have on Peoples' financial statements and expects to recognize a one-time cumulative-effect adjustment to the allowance for loan loss provision as of the beginning of the first reporting period in which the new standard is effective, consistent with regulatory expectations set forth in interagency guidance issued at the end of 2016. Peoples has not yet determined the magnitude of any such one-time cumulative adjustment or of the overall impact of the new standard on Peoples' financial condition or results of operations.

ASU 2016-02 - Leases (Topic 842): This ASU was issued to improve the financial reporting of leasing activities and provide a faithful representation of leasing transactions and improve understanding and comparability of a lessee's financial statements. Under the new accounting guidance, a lessee will be required to recognize assets and liabilities for leases with lease terms of more than 12 months. This ASU will require both finance and operating leases to be recognized on the balance sheet. This ASU will affect all companies and organizations that lease real estate. The FASB issued an update in January 2018 (ASU 2018-01) providing an optional transition practical expedient to not evaluate under Topic 842 land easements that exist or expired before the entity's adoption of Topic 842. This ASU will become effective for interim and annual reporting periods beginning after December 15, 2018 (effective January 1, 2019 for Peoples). Peoples will adopt this new accounting guidance as required, and it is not expected to have a material impact on Peoples' consolidated financial statements.

Note 2 Fair Value of Assets and Liabilities

Fair value represents the amount expected to be received to sell an asset or paid to transfer a liability in its principal or most advantageous market in an orderly transaction between market participants at the measurement date. In accordance with fair value accounting guidance, Peoples measures, records, and reports various types of assets and liabilities at fair value on either a recurring or non-recurring basis in the Consolidated Financial Statements. Those assets and liabilities are presented below in the sections entitled “Assets and Liabilities Required to be Measured and Reported at Fair Value on a Recurring Basis” and “Assets and Liabilities Required to be Measured and Reported at Fair Value on a Non-Recurring Basis.”

Depending on the nature of the asset or liability, Peoples uses various valuation methodologies and assumptions to estimate fair value. The measurement of fair value under US GAAP uses a hierarchy intended to maximize the use of observable inputs and minimize the use of unobservable inputs.  This hierarchy uses three levels of inputs to measure the fair value of assets and liabilities as follows:

Level 1: Quoted prices in active exchange markets for identical assets or liabilities; also includes certain U.S. Treasury and other U.S. government and agency securities actively traded in over-the-counter markets.

Level 2: Observable inputs other than Level 1 including quoted prices for similar assets or liabilities, quoted prices in less active markets, or other observable inputs that can be corroborated by observable market data; also includes derivative contracts whose value is determined using a pricing model with observable market inputs or can be derived principally from, or corroborated by, observable market data.  This category generally includes certain U.S. government and agency securities, corporate debt securities, derivative instruments, and residential mortgage loans held for sale.

Level 3: Unobservable inputs supported by little or no market activity for financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments

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for which the determination of fair value requires significant management judgment or estimation; also includes observable inputs for single dealer nonbinding quotes not corroborated by observable market data. This category generally includes certain private equity investments, retained interests from securitizations, and certain collateralized debt obligations.

Assets and liabilities are assigned to a level within the fair value hierarchy based on the lowest level of significant input used to measure fair value. Assets and liabilities may change levels within the fair value hierarchy due to market conditions or other circumstances. Those transfers are recognized on the date of the event that prompted the transfer. There were no transfers of assets or liabilities required to be measured at fair value on a recurring basis between levels of the fair value hierarchy during the periods presented.

Assets and Liabilities Required to be Measured and Reported at Fair Value on a Recurring Basis

The following table provides the fair value for assets and liabilities required to be measured and reported at fair value on a recurring basis in the Consolidated Balance Sheets by level in the fair value hierarchy.

	Recurring Fair Value Measurements at Reporting Date
	March 31, 2018						December 31, 2017
(Dollars in thousands)	Level 1		Level 2		Level 3		Level 1		Level 2		Level 3
Assets:
Securities available-for-sale:
Obligations of:
States and political subdivisions	$	—	$	97,205	$	—	$	—	$	101,569	$	—
Residential mortgage-backed securities	—		681,746		—		—		673,664		—
Commercial mortgage-backed securities	—		6,864		—		—		6,976		—
Bank-issued trust preferred securities	—		5,095		—		—		5,129		—
Equity securities (a)	—		—		—		7,694		155
Total available-for-sale securities	—		790,910		—		7,694		787,493		—
Securities held-to-maturity:
Obligations of:
States and political subdivisions	—		4,300		—		—		4,417		—
Residential mortgage-backed securities	—		30,978		—		—		32,227		—
Commercial mortgage-backed securities	—		4,162		—		—		4,569		—
Total held-to-maturity securities	—		39,440		—		—		41,213		—
Equity securities (a)	7,311		160		—		—		—		—
Derivative assets (b)	—		6,633		—		—		4,594		—
Liabilities:
Derivative liabilities (c)	$	—	$	3,870	$	—	$	—	$	3,241	$	—

(a) As of January 1, 2018, Peoples adopted ASU 2016-01, resulting in the reclassification of equity securities from available-for-sale investment

securities to other investment securities. As of December 31, 2017, equity securities had a net unrealized gain of $6.5 million.

(b) Included in other assets on the Consolidated Balance Sheets. For additional information, see Note 9 of the Notes to the Unaudited Consolidated Financial Statements.

(c) Included in other liabilities on the Consolidated Balance Sheets. For additional information, see Note 9 of the Notes to the Unaudited Consolidated Financial Statements.

Securities Available-for-Sale and Held-to-Maturity:The fair values used by Peoples are obtained from an independent pricing service and represent either quoted market prices for the identical securities (Level 1) or fair values determined by pricing models using a market approach that considers observable market data, such as interest rate volatility, LIBOR yield curves, credit spreads and prices from market makers and live trading systems (Level 2). Management reviews the valuation methodology and quality controls utilized by the pricing services in management's overall assessment of the reasonableness of the fair values provided, and challenges prices when management believes a material discrepancy in pricing exists.

Equity Securities:The fair value of Peoples' equity securities are obtained from quoted prices in active exchange markets for identical assets or liabilities (Level 1) or quoted prices in less active markets (Level 2).

Derivative Assets/Liabilities: Derivative assets/liabilities are recognized in the Consolidated Balance Sheets at their fair value within other assets/liabilities. The fair value for derivative instruments is determined based on market prices, broker-dealer quotations on similar products, or other related input parameters (Level 2).

10

Assets and Liabilities Required to be Measured and Reported at Fair Value on a Non-Recurring Basis

The following table provides the fair value for each class of assets and liabilities required to be measured and reported at fair value on a non-recurring basis in the Consolidated Balance Sheets by level in the fair value hierarchy.

	Non-Recurring Fair Value Measurements at Reporting Date
	March 31, 2018						December 31, 2017
(Dollars in thousands)	Level 1		Level 2		Level 3		Level 1		Level 2		Level 3
Impaired loans	$	—	$	—	$	20,386	$	—	$	—	$	20,602
Loans held for sale	—		—		3,581		—		—		2,510
Other real estate owned (OREO)	—		—		99		—		—		208

Impaired Loans: Impaired loans are measured and reported at fair value when the amounts to be received are less than the carrying value of the loans. One of the allowable methods for determining the amount of impairment is estimating fair value using the fair value of the collateral for collateral-dependent loans. Management’s determination of the fair value for these loans uses a market approach representing the estimated net proceeds to be received from the sale of the collateral based on observable market prices or the market value provided by independent, licensed or certified appraisers (Level 3), less estimated selling costs. At March 31, 2018, impaired loans had an aggregate outstanding principal balance of $25.2 million.  For the three months ended March 31, 2018, Peoples recognized $20,000 of losses on impaired loans, through the allowance for loan losses.

Loans Held for Sale:Loans originated and intended to be sold in the secondary market, generally one-to-four family residential loans, are carried at the lower of cost or estimated fair value determined on an aggregate basis (Level 3).

Other Real Estate Owned: Other real estate owned ("OREO"), included in other assets on the Consolidated Balance Sheets, is comprised primarily of commercial and residential real estate properties acquired by Peoples in satisfaction of a loan. OREO obtained in satisfaction of a loan is recorded at the lower of cost or estimated fair value, less estimated costs to sell the property (Level 3).

Financial Instruments Not Required to be Measured or Reported at Fair Value

The following table provides the carrying amount for each class of assets and liabilities and the fair value for certain financial instruments that are not required to be measured or reported at fair value in the Consolidated Balance Sheets.

	Fair Value Measurements of Other Financial Instruments
(Dollars in thousands)	Fair Value Hierarchy Level	March 31, 2018				December 31, 2017
		Carrying Amount		Fair Value		Carrying Amount		Fair Value
Assets:
Cash and cash equivalents	1	$	72,629	$	72,629	$	72,194	$	72,194
Other investment securities:
FHLB stock	2	28,132		28,132		28,132		28,132
FRB stock	2	10,179		10,179		10,179		10,179
Non-qualified deferred comp (a)	2	914		914		—		—
FHLMC stock	2	60		60		60		60
Total other investment securities		39,285		39,285		38,371		38,371
Loans	3	2,383,530		2,297,373		2,338,344		2,274,194
Bank owned life insurance (BOLI)	3	62,644		62,644		62,176		62,176
Bank premises and equipment, net	3	56,247		56,247		52,510		52,510
Servicing rights (b)	3	2,303		2,303		2,305		2,305
Liabilities:
Deposits	2	$	2,813,181	$	2,809,738	$	2,730,330	$	2,730,071
Short-term borrowings	2	203,475		203,494		209,491		209,628
Long-term borrowings	2	123,481		119,817		144,019		142,108

(a) As of January 1, 2018, Peoples adopted ASU 2016-01, resulting in the reclassification of equity securities (including those held in participant accounts in the non-qualified deferred compensation plan) from available-for-sale investment securities to other investment securities.

(b) Included in other intangible assets on the Consolidated Balance Sheets. Servicing rights are carried at the lower of cost or

11

market.

 For certain financial assets and liabilities, carrying value approximates fair value due to the nature of the financial instrument.  These instruments include cash and cash equivalents, demand and other non-maturity deposits, and overnight borrowings.  Peoples used the following methods and assumptions in estimating the fair value of the following financial instruments:

Cash and Cash Equivalents: Cash and cash equivalents include cash on hand, balances due from other banks, interest-bearing deposits in other banks, federal funds sold and other short-term investments with original maturities of ninety days or less (Level 1).

Other Investment Securities: Certain restricted equity securities that do not have readily determinable fair values and for which Peoples does not exercise significant influence, are carried at cost. These cost method securities are reported as other investment securities on the Consolidated Balance Sheets and consist primarily of shares of the Federal Home Loan Bank of Cincinnati (the “FHLB”) and the Federal Reserve Bank of Cleveland (the "FRB") (Level 2).

Loans: The fair value of portfolio loans assumes sale of the notes to a third-party financial investor.  Accordingly, this value is not necessarily the value to Peoples if the notes were held to maturity.  Peoples considered interest rate, credit and market factors in estimating the fair value of loans (Level 3).  In the current whole loan market, financial investors are generally requiring a higher rate of return than the return inherent in loans if held to maturity given the lack of market liquidity.  This divergence accounts for the majority of the difference in carrying amount over fair value. 

Bank Owned Life Insurance: Peoples’s bank owned life insurance policies are recorded at their cash surrender value (Level 3). Peoples recognizes tax-exempt income from the periodic increases in the cash surrender value of these policies and from death benefits.

Bank Premises and Equipment: Bank premises and equipment are stated at cost less accumulated depreciation. Depreciation is computed on the straight-line method over the estimated useful lives of the related assets owned. Major improvements to leased facilities are capitalized and included in bank premises at cost less accumulated depreciation, which is calculated on the straight-line method over the lesser of the remaining term of the leased facility or the estimated economic life of the improvement (Level 3).

Servicing Rights ("SRs"): SRs are recorded at fair value at the time of the sale of the loans to the third-party investor. Peoples follows the amortization method for the subsequent measurement of each class of separately recognized servicing assets and liabilities. Under the amortization method, Peoples amortizes the value of servicing assets or liabilities in proportion to, and over the period of, estimated net servicing income or net servicing loss, and assesses servicing assets or liabilities for impairment or increased obligation based on the fair value at each reporting date. The fair value of the SRs is determined by using a discounted cash flow model, which estimates the present value of the future net cash flows of the servicing portfolio based on various factors, such as servicing costs, expected prepayment speeds and discount rates (Level 3).

Deposits: The fair value of fixed maturity certificates of deposit is estimated using a discounted cash flow calculation based on current rates offered for deposits of similar remaining maturities (Level 2).

Short-term Borrowings: The fair value of short-term borrowings is estimated using discounted cash flow analysis based on rates currently available to Peoples for borrowings with similar terms (Level 2). 

Long-term Borrowings: The fair value of long-term borrowings is estimated using a discounted cash flow analysis based on rates currently available to Peoples for borrowings with similar terms (Level 2). 

Certain financial assets and financial liabilities that are not required to be measured or reported at fair value can be subject to fair value adjustments in certain circumstances (for example, when there is evidence of impairment).  These financial assets and liabilities include the following: customer relationships, deposit base, banking center networks, and other information required to compute Peoples’ aggregate fair value that are not included in the above information.  Accordingly, the above fair values are not intended to represent the aggregate fair value of Peoples.

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Note 3 Investment Securities

Available-for-sale

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

(Dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
March 31, 2018
Obligations of:
States and political subdivisions	$	96,730	$	1,052	$	(577	)	$	97,205
Residential mortgage-backed securities	699,788		2,195		(20,237		)	681,746
Commercial mortgage-backed securities	6,974		—		(110		)	6,864
Bank-issued trust preferred securities	5,197		116		(218		)	5,095
Total available-for-sale securities	$	808,689	$	3,363	$	(21,142	)	$	790,910
December 31, 2017
Obligations of:
States and political subdivisions	100,039		1,786		(256		)	101,569
Residential mortgage-backed securities	684,100		2,582		(13,018		)	673,664
Commercial mortgage-backed securities	7,004		11		(39		)	6,976
Bank-issued trust preferred securities	5,195		141		(207		)	5,129
Equity securities (a)	1,394		6,520		(65		)	7,849
Total available-for-sale securities	$	797,732	$	11,040	$	(13,585	)	$	795,187

(a) As of January 1, 2018, Peoples adopted ASU 2016-01, resulting in the reclassification of equity securities from available-for-sale investment

securities to other investment securities.

Peoples' investment in equity securities was comprised largely of common stocks issued by various unrelated bank holding companies at both March 31, 2018 and December 31, 2017.  At December 31, 2017, there were no equity securities of a single issuer that exceeded 10% of stockholders' equity.

The gross gains and gross losses realized by Peoples from sales of available-for-sale securities for the periods ended March 31 were as follows:

	Three Months Ended
	March 31,
(Dollars in thousands)	2018		2017
Gross gains realized	$	2	$	340
Gross losses realized	1		—
Net gain (loss) realized	$	1	$	340

The cost of investment securities sold, and any resulting gain or loss, was based on the specific identification method and recognized as of the trade date.

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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
March 31, 2018
Obligations of:
States and political subdivisions	$	26,370	$	306	37	$	5,095	$	271	2	$	31,465	$	577
Residential mortgage-backed securities	321,636		7,396		95	279,802		12,841		86	601,438		20,237
Commercial mortgage-backed securities	5,609		93		2	1,256		17		1	6,865		110
Bank-issued trust preferred securities	—		—		—	2,782		218		3	2,782		218
Total	$	353,615	$	7,795	134	$	288,935	$	13,347	92	$	642,550	$	21,142
December 31, 2017
Obligations of:
States and political subdivisions	$	16,985	$	89	18	$	5,308	$	167	1	$	22,293	$	256
Residential mortgage-backed securities	274,998		3,462		77	291,812		9,556		88	566,810		13,018
Commercial mortgage-backed securities	2,487		23		1	1,274		16		1	3,761		39
Bank-issued trust preferred securities	—		—		—	2,792		207		3	2,792		207
Equity securities (a)	276		1		1	112		64		1	388		65
Total	$	294,746	$	3,575	97	$	301,298	$	10,010	94	$	596,044	$	13,585

(a) As of January 1, 2018, Peoples adopted ASU 2016-01, resulting in the reclassification of equity securities from available-for-sale investment securities to other investment securities.

Management systematically evaluates available-for-sale investment securities for other-than-temporary declines in fair value on a quarterly basis.  At March 31, 2018, management concluded no individual securities were other-than-temporarily impaired since Peoples did not have the intent to sell, nor was it more likely than not that Peoples would be required to sell, any of the securities with an unrealized loss prior to recovery. Further, the unrealized losses at both March 31, 2018 and December 31, 2017 were largely attributable to changes in market interest rates and spreads since the securities were purchased.

At March 31, 2018, approximately 99% of the mortgage-backed securities with a market value that had been at an unrealized loss position for twelve months or more were issued by U.S. government sponsored agencies. The remaining 1%, or four positions, consisted of privately issued mortgage-backed securities with all of the underlying mortgages originated prior to 2004. Two of the four positions had a fair value of less than 90% of their book value, with an aggregate book and fair value of $0.5 million and $0.3 million, respectively. Management analyzed the underlying credit quality of these securities and concluded the unrealized losses were primarily attributable to the floating rate nature of these investments and the low number of loans remaining in these securities.

Furthermore, the unrealized losses with respect to the three bank-issued trust preferred securities that had been in an unrealized loss position for twelve months or more at March 31, 2018 were primarily attributable to the floating-rate nature of those investments, the current interest rate environment and spreads within that sector.

14

The table below presents the amortized cost, fair value and total weighted-average yield of available-for-sale securities by contractual maturity at March 31, 2018.  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.  

(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	$	1,294		$	10,503		$	30,295		$	54,638		$	96,730
Residential mortgage-backed securities	439			14,398			40,311			644,640			699,788
Commercial mortgage-backed securities	—			5,701			—			1,273			6,974
Bank-issued trust preferred securities	—			—			2,197			3,000			5,197
Total available-for-sale securities	$	1,733		$	30,602		$	72,803		$	703,551		$	808,689
Fair value
Obligations of:
States and political subdivisions	$	1,301		$	10,492		$	30,332		$	55,080		$	97,205
Residential mortgage-backed securities	433			14,140			39,654			627,519			681,746
Commercial mortgage-backed securities	—			5,608			—			1,256			6,864
Bank-issued trust preferred securities	—			—			2,313			2,782			5,095
Total available-for-sale securities	$	1,734		$	30,240		$	72,299		$	686,637		$	790,910
Total weighted-average yield	2.77		%	2.52		%	3.15		%	2.86		%	2.88		%

Held-to-Maturity

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

(Dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
March 31, 2018
Obligations of:
States and political subdivisions	$	3,807	$	493	$	—		$	4,300
Residential mortgage-backed securities	31,590		192		(804		)	30,978
Commercial mortgage-backed securities	4,254		—		(92		)	4,162
Total held-to-maturity securities	$	39,651	$	685	$	(896	)	$	39,440
December 31, 2017
Obligations of:
States and political subdivisions	$	3,810	$	607	$	—		$	4,417
Residential mortgage-backed securities	32,487		269		(529		)	32,227
Commercial mortgage-backed securities	4,631		—		(62		)	4,569
Total held-to-maturity securities	$	40,928	$	876	$	(591	)	$	41,213

There were no gross gains or gross losses realized by Peoples from sales of held-to-maturity securities for the three months ended March 31, 2018 and 2017.

15

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
March 31, 2018
Residential mortgage-backed securities	$	5,774	$	48	4	$	11,729	$	756	3	$	17,503	$	804
Commercial mortgage-backed securities	—		—		—	4,162		92		1	4,162		92
Total	$	5,774	$	48	4	$	15,891	$	848	4	$	21,665	$	896
December 31, 2017
Residential mortgage-backed securities	$	1,476	$	4	2	$	12,098	$	525	3	$	13,574	$	529
Commercial mortgage-backed securities	—		—		—	4,569		62		1	4,569		62
Total	$	1,476	$	4	2	$	16,667	$	587	4	$	18,143	$	591

The table below presents the amortized cost, fair value and total weighted-average yield of held-to-maturity securities by contractual maturity at March 31, 2018.  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. 

(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	$	—		$	312		$	2,981		$	514		$	3,807
Residential mortgage-backed securities	—			439			6,336			24,815			31,590
Commercial mortgage-backed securities	—			—			—			4,254			4,254
Total held-to-maturity securities	$	—		$	751		$	9,317		$	29,583		$	39,651
Fair value
Obligations of:
States and political subdivisions	$	—		$	312		$	3,459		$	529		$	4,300
Residential mortgage-backed securities	—			430			6,315			24,233			30,978
Commercial mortgage-backed securities	—			—			—			4,162			4,162
Total held-to-maturity securities	$	—		$	742		$	9,774		$	28,924		$	39,440
Total weighted-average yield	—		%	3.16		%	2.79		%	3.53		%	3.35		%

Other Investment Securities

Peoples' other investment securities on the Unaudited Consolidated Balance Sheet consist largely of shares of the Federal Home Loan Bank of Cincinnati (the “FHLB”) and the Federal Reserve Bank of Cleveland (the "FRB"), and equity securities. As of January 1, 2018, Peoples adopted ASU 2016-01, resulting in the reclassification of equity securities from available-for-sale investment securities to other investment securities.

The following table summarizes the carrying value of Peoples' other investment securities:

(Dollars in thousands)	March 31, 2018		December 31, 2017
March 31, 2018
FHLB stock	$	28,132	$	28,132
FRB stock	10,179		10,179
Equity securities (a)	7,471		—
Other	974		60
Total other investment securities	$	46,756	$	38,371

(a) As of January 1, 2018, Peoples adopted ASU 2016-01, resulting in the reclassification of equity securities from available-for-sale investment

securities to other investment securities.

16

Pledged Securities

Peoples had pledged available-for-sale investment securities with carrying values of $551.1 million and $522.7 million at March 31, 2018 and December 31, 2017, respectively, and held-to-maturity investment securities with carrying values of $17.9 million and $18.3 million at March 31, 2018 and December 31, 2017, respectively, to secure public and trust department deposits, and repurchase agreements in accordance with federal and state requirements.  Peoples also pledged available-for-sale investment securities with carrying values of $5.0 million and $6.7 million at March 31, 2018 and December 31, 2017, respectively, and held-to-maturity securities with carrying values of $19.0 million and $19.9 million at March 31, 2018 and December 31, 2017, respectively, to secure additional borrowing capacity at the FHLB and the FRB.

Note 4 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. 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 major classifications of loan balances (in each case, net of deferred fees and costs) excluding loans held for sale, were as follows:

(Dollars in thousands)	March 31, 2018		December 31, 2017
Originated loans:
Commercial real estate, construction	$	99,757	$	107,118
Commercial real estate, other	627,932		595,447
Commercial real estate	727,689		702,565
Commercial and industrial	455,243		438,051
Residential real estate	302,890		304,523
Home equity lines of credit	87,722		88,902
Consumer, indirect	347,607		340,390
Consumer, direct	67,386		67,010
Consumer	414,993		407,400
Deposit account overdrafts	543		849
Total originated loans	$	1,989,080	$	1,942,290
Acquired loans:
Commercial real estate, construction	$	8,054	$	8,319
Commercial real estate, other	156,115		165,120
Commercial real estate	164,169		173,439
Commercial and industrial	33,815		34,493
Residential real estate	194,063		184,864
Home equity lines of credit	20,008		20,575
Consumer, indirect	253		329
Consumer, direct	940		1,147
Consumer	1,193		1,476
Total acquired loans	$	413,248	$	414,847
Loans, net of deferred fees and costs	$	2,402,328	$	2,357,137

17

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 purchased credit impaired loans included in the loan balances above are summarized as follows:

(Dollars in thousands)	March 31, 2018		December 31, 2017
Commercial real estate, other	$	7,794	$	8,117
Commercial and industrial	718		767
Residential real estate	19,156		19,532
Consumer	27		33
Total outstanding balance	$	27,695	$	28,449
Net carrying amount	$	18,864	$	19,564

Changes in the accretable yield for purchased credit impaired loans for the three months ended March 31, 2018 were as follows:

	For the three moths ended
(Dollars in thousands)	March 31, 2018			March 31, 2017
Balance, December 31, 2017	$	6,704		$	7,132
Accretion	(412		)	(461		)
Balance, March 31, 2018	$	6,292		$	6,671

Peoples completes annual re-estimations of cash flows on acquired purchased credit impaired loans in August of each year. At the end of each quarter, Peoples evaluates factors to determine if a material change has occurred in acquired loans accounted for and if a re-estimation is needed. Factors evaluated to determine if a re-estimation is needed include changes in: risk ratings, maturity dates, charge-offs, payoffs, nonaccrual status and loans that have become past due.

Cash flows expected to be collected on purchased credit impaired loans are estimated 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 the principal expected to be collected. In re-forecasting 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 $486.5 million and $487.2 million at March 31, 2018 and December 31, 2017, respectively. Peoples also pledges commercial loans to secure borrowings with the FRB. The outstanding balances of these loans totaled $71.5 million and $74.0 million at March 31, 2018 and December 31, 2017, 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.

18

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, 2018		December 31, 2017		March 31, 2018		December 31, 2017
Originated loans:
Commercial real estate, construction	$	732	$	754	$	—	$	—
Commercial real estate, other	6,673		6,877		—		—
Commercial real estate	7,405		7,631		—		—
Commercial and industrial	1,598		739		—		—
Residential real estate	3,666		3,546		298		548
Home equity lines of credit	507		550		29		50
Consumer, indirect	306		256		—		—
Consumer, direct	17		39		—		16
Consumer	323		295		—		16
Total originated loans	$	13,499	$	12,761	$	327	$	614
Acquired loans:
Commercial real estate, other	$	269	$	192	$	71	$	215
Commercial and industrial	141		259		—		45
Residential real estate	2,062		2,168		632		730
Home equity lines of credit	230		312		—		22
Consumer, direct	1		—		—		—
Total acquired loans	$	2,703	$	2,931	$	703	$	1,012
Total loans	$	16,202	$	15,692	$	1,030	$	1,626

19

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, 2018
Originated loans:
Commercial real estate, construction	$	—	$	—	$	732	$	732	$	99,025	$	99,757
Commercial real estate, other	596		—		6,512		7,108		620,824		627,932
Commercial real estate	596		—		7,244		7,840		719,849		727,689
Commercial and industrial	1,352		1,180		1,570		4,102		451,141		455,243
Residential real estate	4,220		1,107		1,778		7,105		295,785		302,890
Home equity lines of credit	111		122		337		570		87,152		87,722
Consumer, indirect	1,510		176		152		1,838		345,769		347,607
Consumer, direct	204		24		11		239		67,147		67,386
Consumer	1,714		200		163		2,077		412,916		414,993
Deposit account overdrafts	—		—		—		—		543		543
Total originated loans	$	7,993	$	2,609	$	11,092	$	21,694	$	1,967,386	$	1,989,080
Acquired loans:
Commercial real estate, construction	$	33	$	—	$	—	$	33	$	8,021	$	8,054
Commercial real estate, other	490		—		264		754		155,361		156,115
Commercial real estate	523		—		264		787		163,382		164,169
Commercial and industrial	—		—		105		105		33,710		33,815
Residential real estate	2,499		782		1,982		5,263		188,800		194,063
Home equity lines of credit	59		—		182		241		19,767		20,008
Consumer, indirect	4		—		—		4		249		253
Consumer, direct	16		2		—		18		922		940
Consumer	20		2		—		22		1,171		1,193
Total acquired loans	$	3,101	$	784	$	2,533	$	6,418	$	406,830	$	413,248
Total loans	$	11,094	$	3,393	$	13,625	$	28,112	$	2,374,216	$	2,402,328

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	Loans Past Due								Current Loans		Total Loans
(Dollars in thousands)	30 - 59 days		60 - 89 days		90 + Days		Total
December 31, 2017
Originated loans:
Commercial real estate, construction	$	—	$	—	$	—	$	—	$	107,118	$	107,118
Commercial real estate, other	990		—		6,492		7,482		587,965		595,447
Commercial real estate	990		—		6,492		7,482		695,083		702,565
Commercial and industrial	1,423		92		706		2,221		435,830		438,051
Residential real estate	4,562		1,234		2,408		8,204		296,319		304,523
Home equity lines of credit	502		80		395		977		87,925		88,902
Consumer, indirect	2,153		648		105		2,906		337,484		340,390
Consumer, direct	417		46		48		511		66,499		67,010
Consumer	2,570		694		153		3,417		403,983		407,400
Deposit account overdrafts	—		—		—		—		849		849
Total originated loans	$	10,047	$	2,100	$	10,154	$	22,301	$	1,919,989	$	1,942,290
Acquired loans:
Commercial real estate, construction	$	—	$	—	$	—	$	—	$	8,319	$	8,319
Commercial real estate, other	775		948		312		2,035		163,085		165,120
Commercial real estate	775		948		312		2,035		171,404		173,439
Commercial and industrial	—		1		171		172		34,321		34,493
Residential real estate	4,656		1,391		1,910		7,957		176,907		184,864
Home equity lines of credit	126		—		301		427		20,148		20,575
Consumer, indirect	3		—		—		3		326		329
Consumer, direct	10		11		—		21		1,126		1,147
Consumer	13		11		—		24		1,452		1,476
Total acquired loans	$	5,570	$	2,351	$	2,694	$	10,615	$	404,232	$	414,847
Total loans	$	15,617	$	4,451	$	12,848	$	32,916	$	2,324,221	$	2,357,137

During the first three months of 2018, Peoples' delinquency trends improved compared to the balances at December 31, 2017, as total loans past due declined in both the originated and acquired loan portfolios.

Credit Quality Indicators

As discussed in Note 1 of the Notes to the Consolidated Financial Statements included in Peoples' 2017 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.

“Special Mention” (grade 5): Loans in this risk grade are the equivalent of the regulatory definition of “Other Assets Especially Mentioned.” Loans in this risk 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 a 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 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

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certain important and reasonably specific factors that may work to the advantage and strengthening of the exposure, classification of the loan 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 a 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 loans within Peoples' loan portfolio based upon the most recent analysis performed:

	Pass Rated (Grades 1 - 4)		Special Mention (Grade 5)		Substandard (Grade 6)		Doubtful (Grade 7)		Not Rated		Total Loans
(Dollars in thousands)
March 31, 2018
Originated loans:
Commercial real estate, construction	$	92,383	$	6,190	$	732	$	—	$	452	$	99,757
Commercial real estate, other	596,903		14,058		16,971		—		—		627,932
Commercial real estate	689,286		20,248		17,703		—		452		727,689
Commercial and industrial	404,591		46,477		4,175		—		—		455,243
Residential real estate	17,037		579		11,270		131		273,873		302,890
Home equity lines of credit	454		—		—		—		87,268		87,722
Consumer, indirect	51		6		—		—		347,550		347,607
Consumer, direct	37		—		—		—		67,349		67,386
Consumer	88		6		—		—		414,899		414,993
Deposit account overdrafts	—		—		—		—		543		543
Total originated loans	$	1,111,456	$	67,310	$	33,148	$	131	$	777,035	$	1,989,080
Acquired loans:
Commercial real estate, construction	$	8,003	$	—	$	51	$	—	$	—	$	8,054
Commercial real estate, other	144,647		3,440		7,918		110		—		156,115
Commercial real estate	152,650		3,440		7,969		110		—		164,169
Commercial and industrial	31,351		185		2,279		—		—		33,815
Residential real estate	11,633		647		1,024		—		180,759		194,063
Home equity lines of credit	44		—		—		—		19,964		20,008
Consumer, indirect	8		—		—		—		245		253
Consumer, direct	32		—		—		—		908		940
Consumer	40		—		—		—		1,153		1,193
Total acquired loans	$	195,718	$	4,272	$	11,272	$	110	$	201,876	$	413,248
Total loans	$	1,307,174	$	71,582	$	44,420	$	241	$	978,911	$	2,402,328

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	Pass Rated (Grades 1 - 4)		Special Mention (Grade 5)		Substandard (Grade 6)		Doubtful (Grade 7)		Not Rated		Total Loans
(Dollars in thousands)
December 31, 2017
Originated loans:
Commercial real estate, construction	$	100,409	$	5,502	$	754	$	—	$	453	$	107,118
Commercial real estate, other	561,320		17,189		16,938		—		—		595,447
Commercial real estate	661,729		22,691		17,692		—		453		702,565
Commercial and industrial	420,477		13,062		4,512		—		—		438,051
Residential real estate	17,896		1,000		11,371		216		274,040		304,523
Home equity lines of credit	454		—		—		—		88,448		88,902
Consumer, indirect	55		8		—		—		340,327		340,390
Consumer, direct	33		—		—		—		66,977		67,010
Consumer	88		8		—		—		407,304		407,400
Deposit account overdrafts	—		—		—		—		849		849
Total originated loans	$	1,100,644	$	36,761	$	33,575	$	216	$	771,094	$	1,942,290
Acquired loans:
Commercial real estate, construction	$	8,267	$	—	$	52	$	—	$	—	$	8,319
Commercial real estate, other	149,486		6,527		9,107		—		—		165,120
Commercial real estate	157,753		6,527		9,159		—		—		173,439
Commercial and industrial	32,011		157		2,325		—		—		34,493
Residential real estate	12,543		593		1,105		—		170,623		184,864
Home equity lines of credit	124		—		—		—		20,451		20,575
Consumer, indirect	12		—		—		—		317		329
Consumer, direct	35		—		—		—		1,112		1,147
Consumer	47		—		—		—		1,429		1,476
Total acquired loans	$	202,478	$	7,277	$	12,589	$	—	$	192,503	$	414,847
Total loans	$	1,303,122	$	44,038	$	46,164	$	216	$	963,597	$	2,357,137

In the first three months of 2018, Peoples' classified loans, which are loans categorized as substandard or doubtful, declined compared to the balances at December 31, 2017 mostly due to loan payoffs.

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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, 2018
Commercial real estate, construction	$	819	$	—	$	732	$	732	$	—	$	743	$	—
Commercial real estate, other	14,480		14		13,132		13,146		1		13,295		105
Commercial real estate	15,299		14		13,864		13,878		1		14,038		105
Commercial and industrial	2,429		1,699		557		2,256		224		1,890		15
Residential real estate	24,422		476		22,459		22,935		57		22,839		312
Home equity lines of credit	1,647		70		1,573		1,643		15		1,652		20
Consumer, indirect	301		74		231		305		20		285		5
Consumer, direct	76		53		23		76		39		77		1
Consumer	377		127		254		381		59		362		6
Total	$	44,174	$	2,386	$	38,707	$	41,093	$	356	$	40,781	$	458
December 31, 2017
Commercial real estate, construction	$	821	$	—	$	754	$	754	$	—	$	788	$	—
Commercial real estate, other	14,909		14		13,606		13,620		1		14,392		503
Commercial real estate	15,730		14		14,360		14,374		1		15,180		503
Commercial and industrial	1,690		951		572		1,523		199		1,668		65
Residential real estate	24,743		477		22,626		23,103		58		23,195		1,246
Home equity lines of credit	1,707		81		1,624		1,705		18		1,505		85
Consumer, indirect	273		70		206		276		26		184		20
Consumer, direct	87		56		28		84		37		79		7
Consumer	360		126		234		360		63		263		27
Total	$	44,230	$	1,649	$	39,416	$	41,065	$	339	$	41,811	$	1,926

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.

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

		Three Months Ended
		Recorded Investment (a)
(Dollars in thousands)	Number of Contracts	Pre-Modification		Post-Modification		Remaining Recorded Investment
March 31, 2018
Originated loans:
Residential real estate	2	$	193	$	193	$	193
Consumer, indirect	7	86		86		86
Consumer, direct	2	4		4		4
Consumer	9	90		90		90
Total originated loans	11	$	283	$	283	$	283
Acquired loans:
Commercial real estate, other	1	$	50	$	50	$	50
Residential real estate	2	269		269		269
Consumer, other	1	1		1		1
Total acquired loans	4	$	320	$	320	$	320
March 31, 2017
Originated loans:
Residential real estate	2	$	105	$	105	$	105
Home equity lines of credit	3	226		226		225
Consumer, indirect	4	80		80		80
Consumer, direct	2	9		9		9
Consumer	6	89		89		89
Total originated loans	11	$	420	$	420	$	419
Acquired loans:
Commercial real estate, other	2	$	271	$	271	$	271
Residential real estate	2	126		126		126
Home equity lines of credit	4	294		294		326
Consumer, direct	1	9		9		9
Total acquired loans	9	$	700	$	700	$	732
(a) 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.

The following table presents those acquired loans modified in a TDR during the year that subsequently defaulted (i.e., are 90 days or more past due following a modification) during the three months ended March 31:

	March 31, 2018					March 31, 2017
(Dollars in thousands)	Number of Contracts	Recorded Investment (a)		Impact on the Allowance for Loan Losses		Number of Contracts	Recorded Investment (a)		Impact on the Allowance for Loan Losses
Acquired loans:
Residential real estate	—	$	—	$	—	1	$	73	$	—
Total	—	$	—	$	—	1	$	73	$	—
(a) 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.

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Peoples did not have any originated loans that were modified as a TDR during the last twelve months that subsequently defaulted. Peoples had no 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 Indirect			Consumer Other			Deposit Account Overdrafts			Total
Balance, January 1, 2018	$	7,797		$	5,813		$	904		$	693		$	2,944		$	464		$	70		$	18,685
Charge-offs	(842		)	(31		)	(145		)	(37		)	(929		)	(110		)	(205		)	(2,299		)
Recoveries	15			—			26			7			134			69			70			321
Net (charge-offs)	(827		)	(31		)	(119		)	(30		)	(795		)	(41		)	(135		)	(1,978		)
Provision for (recovery of) loan losses	1,092			(513		)	301			27			885			50			141			1,983
Balance, March 31, 2018	$	8,062		$	5,269		$	1,086		$	690		$	3,034		$	473		$	76		$	18,690
Period-end amount allocated to:
Loans individually evaluated for impairment	$	1		$	224		$	57		$	15		$	20		$	39		$	—		$	356
Loans collectively evaluated for impairment	8,061			5,045			1,029			675			3,014			434			76			18,334
Ending balance	$	8,062		$	5,269		$	1,086		$	690		$	3,034		$	473		$	76		$	18,690
Balance, January 1, 2017	$	7,172		$	6,353		$	982		$	688		$	2,312		$	518		$	171		$	18,196
Charge-offs	—			(117		)	(108		)	(3		)	(483		)	(40		)	(349		)	(1,100		)
Recoveries	102			—			89			3			206			50			65			515
Net recoveries (charge-offs)	102			(117		)	(19		)	—			(277		)	10			(284		)	(585		)
(Recovery of) provision for loan losses	(208		)	298			182			(13		)	374			(90		)	224			767
Balance, March 31, 2017	$	7,066		$	6,534		$	1,145		$	675		$	2,409		$	438		$	111		$	18,378
Period-end amount allocated to:
Loans individually evaluated for impairment	$	462		$	449		$	139		$	16		$	24		$	2		$	—		$	1,092
Loans collectively evaluated for impairment	6,604			6,085			1,006			659			2,385			436			111			17,286
Ending balance	$	7,066		$	6,534		$	1,145		$	675		$	2,409		$	438		$	111		$	18,378

Allowance for Loan Losses for Acquired Loans

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 purchased 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.

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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, 2018		March 31, 2017
Purchased credit impaired loans:
Balance, beginning of period	$	108	$	233
Recovery of loan losses	—		(143		)
Balance, March 31	$	108	$	90

During the first quarter of 2017, Peoples recorded a recovery of loan losses that was related to an acquired purchased credit impaired loan that was paid off during the quarter.

Note 5 Long-Term Borrowings

The following table summarizes Peoples' long-term borrowings:

	March 31, 2018					December 31, 2017
(Dollars in thousands)	Balance			Weighted- Average Rate		Balance			Weighted- Average Rate
FHLB putable, non-amortizing, fixed-rate advances	$	95,000		1.94	%	$	115,000		1.86	%
FHLB amortizing, fixed-rate advances	21,352			2.02	%	21,939			2.02	%
Junior subordinated debt securities	7,151			6.89	%	7,107			6.51	%
Unamortized debt issuance costs	(22		)	—	%	(27		)	—	%
Total long-term borrowings	$	123,481		2.24	%	$	144,019		2.11	%

Peoples continually evaluates its overall balance sheet position given the interest rate environment. During the first three months of 2018, no additional borrowings were entered into and one long-term FHLB non-amortizing advance in the amount of $20.0 million was reclassified to short-term borrowings as the maturity became less than one year.

As of March 31, 2018, Peoples' FHLB putable and callable option-based advances had one remaining putable or callable option. The FHLB has the option, at its sole discretion, to terminate the advance after the initial fixed rate period of three months, requiring full repayment of the advance by Peoples, prior to the stated maturity. If the advance is terminated prior to maturity, the FHLB will offer Peoples replacement funding at the then-prevailing rate on an advance product then offered by the FHLB, subject to normal FHLB credit and collateral requirements. Peoples is required to make quarterly interest payments.

The amortizing, fixed-rate FHLB advances have a fixed rate for the term of each advance, with maturities ranging from two to thirteen years. These advances require monthly principal and interest payments, with some having a constant prepayment rate requiring an additional principal payment annually. These advances are not eligible for optional prepayment prior to maturity.

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, 2018, Peoples had seven interest rate swaps with a notional value of $60.0 million associated with Peoples' cash outflows for various FHLB advances. Two of the seven swaps became effective in January 2018. Of the five remaining swaps two will become effective in April 2018, one in July of 2018 and two in October 2018. Theses dates roughly coincide with the maturity of existing FHLB advances. Additional information regarding Peoples' interest rate swaps can be found in Note 14 of the Notes to the Unaudited Consolidated Financial Statements included in Peoples' 2017 Form 10-K..

Peoples maintains a multi-year unsecured $15.0 million revolving credit facility (the “Credit Facility”) with Raymond James Bank, N.A. that matures on March 4, 2019. Borrowings under the Credit Facility may be used: (i) to make acquisitions; (ii) to make stock repurchases; (iii) for working capital needs; and (iv) for other general corporate purposes. Each loan under the Credit Facility will bear interest per annum at a rate equal to 3.00% plus the one-month LIBOR rate, which rate will reset monthly. As of March 31, 2018, there were no borrowings outstanding under the Credit Facility. Additional information

27

regarding the Credit Facility can be found in Note 9 of the Notes to the Consolidated Financial Statements included in Peoples' 2017 Form 10-K.

The aggregate minimum annual retirements of long-term borrowings in future periods are as follows:

(Dollars in thousands)	Balance		Weighted-Average Rate
Nine months ending December 31, 2018	$	3,840	1.58	%
Year ending December 31, 2019	13,508		1.21	%
Year ending December 31, 2020	25,564		1.83	%
Year ending December 31, 2021	21,979		1.74	%
Year ending December 31, 2022	16,521		1.96	%
Thereafter	42,069		3.26	%
Total long-term borrowings	$	123,481	2.24	%

Note 6 Stockholders’ Equity

The following table details the progression in Peoples’ common shares and treasury stock during the three months ended March 31, 2018:

	Common Shares	Treasury Stock
Shares at December 31, 2017	18,952,385	702,449
Changes related to stock-based compensation awards:
Release of restricted common shares	—	28,387
Cancellation of restricted common shares	—	170
Exercise of stock appreciation rights	—	(102	)
Grant of restricted common shares	—	(86,876	)
Grant of common shares	—	(11,112	)
Changes related to deferred compensation plan for Boards of Directors:
Purchase of treasury stock	—	1,197
Reissuance of treasury stock	—	(73	)
Common shares issued under dividend reinvestment plan	4,453	—
Common shares issued under compensation plan for Boards of Directors	—	(3,600	)
Shares at March 31, 2018	18,956,838	630,440

Under its Amended Articles of Incorporation, Peoples is authorized to issue up to 50,000 preferred shares, in one or more series, having such voting powers, designations, preferences, rights, qualifications, limitations and restrictions as determined by Peoples' Board of Directors. At March 31, 2018, Peoples had no preferred shares issued or outstanding.

On April 13, 2018, Peoples issued 1,152,711 common shares to ASB Financial Corp. ("ASB") shareholders.

Accumulated Other Comprehensive Income (Loss)

The following table details the change in the components of Peoples’ accumulated other comprehensive income (loss) for the three months ended March 31, 2018:

(Dollars in thousands)	Unrealized Loss on Securities			Unrecognized Net Pension and Postretirement Costs			Unrealized Loss on Cash Flow Hedge		Accumulated Other Comprehensive Loss
Balance, December 31, 2017	(2,088		)	(4,256		)	1,129		(5,215		)
Reclassification adjustments to net income:
Realized gain on sale of securities, net of tax	(1		)	—			—		(1		)
Amounts reclassified out of accumulated other comprehensive loss income per ASU 2016-01	(5,020		)	—			—		(5,020		)
Other comprehensive (loss) income, net of reclassifications and tax	(6,935		)	20			1,089		(5,826		)
Balance, March 31, 2018	$	(14,044	)	$	(4,236	)	$	2,218	$	(16,062	)

Note 7 Employee Benefit Plans

Peoples sponsors a noncontributory defined benefit pension plan that covers substantially all employees hired before January 1, 2010.  The plan provides retirement benefits based on an employee’s years of service and compensation.  For employees hired before January 1, 2003, the amount of postretirement benefit is based on the employee’s average monthly compensation over the highest five consecutive years out of the employee’s last ten years with Peoples while an eligible employee.  For employees hired on or after January 1, 2003, the amount of postretirement benefit is based on 2% of the employee’s annual compensation during the years 2003 through 2009, plus accrued interest.  Effective January 1, 2010, the pension plan was closed to new entrants.  Effective March 1, 2011, the accrual of pension plan benefits for all participants was frozen. Peoples recognized this freeze as a curtailment as of December 31, 2010 and March 1, 2011, under the terms of the pension plan. Peoples also provides post-retirement health and life insurance benefits to former employees and directors. Only those individuals who retired before January 27, 2012 were eligible for life insurance benefits. As of January 1, 2011, all retirees who desire to participate in Peoples medical plan do so by electing COBRA, which provides up to 18 months of coverage; retirees over the age of 65 also have the option to pay to participate in a group Medicare supplemental plan. Peoples’ policy is to fund the cost of the health benefits as they arise.

The following tables detail the components of the net periodic cost for the plans:

	Pension Benefits
	Three Months Ended
	March 31,
(Dollars in thousands)	2018			2017
Interest cost	$	105		$	113
Expected return on plan assets	(147		)	(138		)
Amortization of net loss	28			25
Net periodic cost	$	(14	)	$	—

	Postretirement Benefits
	Three Months Ended
	March 31,
(Dollars in thousands)	2018			2017
Interest cost	$	1		$	1
Amortization of net gain	(2		)	(2		)
Net periodic cost	$	(1	)	$	(1	)

There were no settlement charges recorded in the three months ended March 31, 2018 or March 31, 2017 under the noncontributory defined benefit pension plan.

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Note 8 Earnings Per Common Share

The calculations of basic and diluted earnings per common share were as follows:

	Three Months Ended
	March 31,
(Dollars in thousands, except per share data)	2018		2017
Distributed earnings allocated to common shareholders	$	4,716	$	3,604
Undistributed earnings allocated to common shareholders	6,962		5,162
Net earnings allocated to common shareholders	$	11,678	$	8,766
Weighted-average common shares outstanding	18,126,089		18,029,991
Effect of potentially dilutive common shares	129,946		162,966
Total weighted-average diluted common shares outstanding	18,256,035		18,192,957
Earnings per common share:
Basic	$	0.64	$	0.49
Diluted	$	0.64	$	0.48
Anti-dilutive shares excluded from calculation:
Restricted shares, stock options and stock appreciation rights	32		455

Note 9 Financial Instruments with Off-Balance Sheet Risk

Derivatives and Hedging Activities - Risk Management Objective of Using Derivatives

Peoples is exposed to certain risks arising from both its business operations and economic conditions. Peoples principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. Peoples manages economic risks, including interest rate, liquidity, and credit risk, primarily by managing the amount, sources, and duration of its assets and liabilities and through the use of derivative financial instruments. Specifically, Peoples enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known or expected cash amounts, the value of which are determined by interest rates. Peoples’ derivative financial instruments are used to manage differences in the amount, timing, and duration of Peoples' known or expected cash receipts and its known or expected cash payments principally related to certain variable rate borrowings. Peoples also has interest rate derivatives that result from a service provided to certain qualifying customers and, therefore, are not used to manage interest rate risk in Peoples' assets or liabilities. Peoples manages a matched book with respect to customer-related derivative financial instruments in order to minimize its net risk exposure resulting from such transactions.

Fair Values of Derivative Instruments on the Balance Sheet

Peoples' fair value of the derivative financial instruments was $6.6 million in an asset position and $3.9 million in a liability position at March 31, 2018, and there was $4.6 million in an asset position and $3.2 million in a liability position at December 31, 2017. The amounts are recorded in other assets, and accrued expenses and other liabilities on the consolidated balance sheet at the periods indicated.

Cash Flow Hedges of Interest Rate Risk

Peoples' objectives in using interest rate derivatives are to add stability to interest income and expense, and to manage its exposure to interest rate movements. To accomplish these objectives, 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, 2018, Peoples had seven interest rate swaps with a notional value of $60.0 million associated with Peoples' cash outflows for various FHLB advances.

For derivatives designated as cash flow hedges, the effective portion of changes in the fair value of each derivative is initially reported in accumulated other comprehensive income ("AOCI") (outside of earnings), net of tax, and subsequently reclassified to earnings when the hedged transaction affects earnings, and the ineffective portion of changes in the fair value of the derivative is recognized directly in earnings. Peoples assesses the effectiveness of each hedging relationship by comparing

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the changes in cash flows of the derivative hedging instrument with the changes in cash flows of the designated hedged transaction. The reset dates and the payment dates on the 90-day advances used to fund the swaps are matched to the reset dates and payment dates on the receipt of the 3-month LIBOR floating portion of the swaps to ensure effectiveness of the cashflow hedge. Effectiveness is measured by ensuring that reset dates and payment dates are matched.

Peoples entered into the seven interest rate swap contracts, described above, whereby Peoples will pay a fixed rate of interest for up to ten years while receiving a floating rate component of interest equal to the three-month LIBOR rate. The received floating rate component is intended to offset the rate on the rolling three-month FHLB advances. Amounts reported in AOCI related to derivatives will be reclassified to interest income or expense as interest payments are made or received on Peoples' variable-rate assets or liabilities. During the three months ended March 31, 2018, and March 31, 2017, Peoples had no reclassifications to interest expense. During the next twelve months, Peoples estimates that no interest expense amount will be reclassified.

The amount of accumulated other comprehensive pre-tax income for Peoples' cash flow hedges was $2.8 million at March 31, 2018. There were no pre-tax net losses recorded for the three months ended March 31, 2018. Additionally, Peoples had no reclassifications to earnings in the three months ended March 31, 2018 or March 31, 2017.

Non-Designated Hedges

Peoples maintains an interest rate protection program for commercial loan customers, which was established in 2010. Under this program, Peoples provides its customer with a fixed-rate loan while creating a variable-rate asset for Peoples by the customer entering into an interest rate swap with Peoples on terms that match the loan. Peoples offsets its risk exposure by entering into an offsetting interest rate swap with an unaffiliated institution. These interest rate swaps do not qualify as designated hedges; therefore, each swap is accounted for as a standalone derivative. Peoples had interest rate swaps associated with commercial loans with a notional value of $373.1 million and fair value of $3.9 million of equally offsetting assets and liabilities at March 31, 2018, and a notional value of $363.3 million and fair value of $3.0 million of equally offsetting assets and liabilities at December 31, 2017. These interest rate swaps did not have a material impact on Peoples' results of operation or financial condition.

Note 10 Stock-Based Compensation 

Under the Peoples Bancorp Inc. Second Amended and Restated 2006 Equity Plan (the "2006 Equity Plan"), Peoples may grant, among other awards, nonqualified stock options, incentive stock options, restricted stock awards, stock appreciation rights ("SARs") and unrestricted share awards to employees and non-employee directors. The total number of common shares available under the 2006 Equity Plan is 1,081,260.  The maximum number of common shares that can be issued for incentive stock options is 800,000 common shares. Prior to 2007, Peoples granted nonqualified and incentive stock options to employees and nonqualified stock options to non-employee directors under the 2006 Equity Plan and predecessor plans.  Since 2009, Peoples has granted restricted common shares to employees and restricted common shares to non-employee directors subject to the terms and conditions prescribed by the 2006 Equity Plan. In 2018, the Board of Directors granted unrestricted common shares to non-employee directors and to all full-time and part-time employees who did not already participate in the equity plans. In general, common shares issued in connection with stock-based awards are issued from treasury shares to the extent available.  If no treasury shares are available, common shares are issued from authorized but unissued common shares.

Stock Appreciation Rights

SARs granted to employees have an exercise price equal to the fair market value of Peoples’ common shares on the date of grant and will be settled using common shares of Peoples.  Additionally, the SARs granted to employees vested three years after the respective grant dates and expired ten years from the respective date of grant. The most recent grant of SARs occurred in 2008 and expired on February 20, 2018. The following table summarizes the changes to Peoples' SARs for the three months ended March 31, 2018:

	Number of Common Shares Subject to SARs	Weighted- Average Exercise Price		Weighted-Average Remaining Contractual Life	Aggregate Intrinsic  Value
Outstanding at January 1	314	$	23.77
Exercised	314	23.77
Outstanding at March 31	—	$	—	0.0 years	$	—
Exercisable at March 31	—	$	—	0.0 years	$	—

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Restricted Common Shares

Under the 2006 Equity Plan, Peoples may award restricted common shares to officers, key employees and non-employee directors.  Restrictions on restricted common shares awarded to non-employee directors expired after six months, for awards granted through 2017. Beginning in 2018, common shares awarded to non-employee directors vest immediately upon grant with no restrictions. Restrictions on restricted common shares awarded to employees expire after periods ranging from one to three years. In the first three months of 2018, Peoples granted an aggregate of 84,876 restricted common shares subject to performance-based vesting to officers and key employees with restrictions that will lapse three years after the grant date provided that in order for the restricted common shares to vest in full, Peoples must have reported positive net income and maintained a well capitalized status by regulatory standards for each of the three fiscal years preceding the vesting date. During the first three months of 2018, Peoples granted, to certain key employees, an aggregate of 2,000 restricted common shares subject to time-based vesting with restrictions that will lapse three years after the grant date.

The following table summarizes the changes to Peoples’ restricted common shares for the three months ended March 31, 2018:

	Time-Based Vesting			Performance-Based Vesting
	Number of Common Shares	Weighted-Average Grant Date Fair Value		Number of Common Shares	Weighted-Average Grant Date Fair Value
Outstanding at January 1	33,082	$	22.85	176,218	$	25.50
Awarded	2,000	35.32		84,876	35.43
Released	—	—		82,861	23.63
Forfeited	—	—		170	33.66
Outstanding at March 31	35,082	$	23.56	178,063	$	31.09

For the three months ended March 31, 2018, the total intrinsic value for restricted common shares released was $2.9 million compared to $0.7 million for the three months ended March 31, 2017.

Stock-Based Compensation

Peoples recognizes stock-based compensation expense, which is included as a component of Peoples' salaries and employee benefit costs, based on the estimated fair value of the awards on the grant date.  The following table summarizes the amount of stock-based compensation expense and related tax benefit recognized for each period:

	Three Months Ended
	March 31,
(Dollars in thousands)	2018			2017
Total stock-based compensation expense	$	1,028		$	568
Recognized tax benefit	(216		)	(199		)
Net expense recognized	$	812		$	369

Total unrecognized stock-based compensation expense related to unvested awards was $3.1 million at March 31, 2018, which will be recognized over a weighted-average period of 2.2 years. On January 31, 2018, Peoples granted, to non-employee directors, an aggregate of 3,600 unrestricted common shares, which resulted in an additional $128,000 of stock-based compensation expense being recognized. On February 14, 2018, the Board of Directors granted an aggregate of 11,112 unrestricted common shares to all full-time and part-time employees who did not already participate in the equity plans, which resulted in an additional $388,000 of stock-based compensation expense being recognized.

Performance Unit Award Agreement

Under the 2006 Equity Plan, Peoples may award performance unit awards to officers, key employees and non-employee directors.  On July 26, 2017, Peoples granted a total of seven performance unit awards to officers with a maximum aggregate dollar amount of $1.3 million represented by the performance units subject to such awards, with each performance unit representing $1.00. The performance unit awards granted are for the performance period beginning January 1, 2018 and ending on December 31, 2019, and will be subject to two performance goals. Twenty-five percent of the performance units subject to each award will vest if, but only if, the related target performance goal is achieved. The remaining 75% of the performance units subject to each award will vest based on the relative performance (measured by percentile ranking) with respect to the related maximum performance goal. If for the performance period, the target level of achievement for the first

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performance goal and/or the maximum level of achievement for the second performance goal is not reached, the dollar amount represented by the performance units associated with each performance goal will be adjusted to reflect the level of performance achieved. After the vesting date, the participant will receive that number of common shares of Peoples equal to (i) the aggregate number of participant's performance units (and dollar value of such performance units) that vested based on the performance achieved under both performance goals (ii) divided by the fair market value of a common share of Peoples on the date of such vesting and rounded down to the nearest whole common share.

Note 11 Revenue

As of January 1, 2018, Peoples adopted ASU 2014-09 - Revenue from Contracts with Customers (Topic 606), and all subsequent updates that modified ASC 606. Peoples has elected to adopt this new accounting guidance using the modified retrospective approach. The modified retrospective approach uses a cumulative-effect adjustment to retained earnings to reflect uncompleted contracts in the initial application of the guidance. As of January 1, 2018, Peoples recorded a cumulative-effect adjustment for uncompleted contracts, which resulted in a reduction to retained earnings and an increase in accrued expenses and other liabilities of $3.1 million, which is net of federal income taxes. The impact during the first quarter of 2018 was an increase in insurance income and a decrease in retained earnings of $0.4 million as a result of applying ASC 606. Prior period amounts are not adjusted and continue to be reported under the accounting standards in effect for those respective periods.

Peoples recognizes revenues as they are earned based on contractual terms, or as services are provided and collectability is reasonably assured. Estimates of variable consideration are included in revenue to the extent that it is probable that a significant reversal of cumulative revenue will not occur, once the uncertainty is resolved. Peoples recognizes revenue from contracts with customers under the following revenue streams:

Insurance Income: Insurance income generally consists of commissions and fees from the sale of insurance policies, third-party administration services and performance-based commissions from insurance companies.

Peoples recognizes commission income from the sale of insurance policies when it acts as an agent between the insurance carrier and policyholder, arranging for the insurance carrier to provide policies to policyholders, and acts on behalf of the insurance carrier by providing customer service to the policyholder during the policy period. Commission income is recognized over time, using the output method of time elapsed, which corresponds with the underlying insurance policy period, for which Peoples is obligated to perform under contract with the insurance carrier. Commission income is variable, as it is comprised of a certain percentage of the underlying policy premium. Peoples estimates the variable consideration based upon the "most likely amount" method, and does not expect or anticipate a significant reversal of revenue in future periods, based upon historical experience. Payment is due from the insurance carrier for commission income once the insurance policy has been sold. Peoples has elected to apply a practical expedient related to capitalizable costs, which are the commissions paid to insurance producers, and will expense these commissions paid to insurance producers as incurred, as these costs are related to the commission income and would have been amortized within one year or less if they had been capitalized, the same period over which the commission income was earned.

Fees related to third-party administration services performed are recognized over time, in the period in which services have been provided, and are recognized monthly in the month the services were performed.

Performance-based commissions from insurance companies are recognized at a point in time, when received, and no contingencies remain.

Trust and Investment Income: Trust and investment income consists of revenue from fiduciary and brokerage activities, which includes fees for services such as asset management, record keeping, retirement services and estate management, and investment commissions and fees related to the sale of investments. Trust and investment income is recognized over time which reflects the duration of the contract period for which services have been provided. Trust and investment income is variable as it is based on the value of assets under administration and management, and specific transactions. Peoples estimates the variable consideration based upon the most likely amount method, and does not expect or anticipate a significant reversal of revenue in future periods. Payment is due from the customer when billed, which is typically a monthly or quarterly billing for services rendered in the most recent period, for which the performance obligation has been satisfied. Peoples has elected to apply a practical expedient of right to invoice when recognizing trust and investment income, as Peoples has fulfilled the performance obligation, the customer has consumed the service, and Peoples has a right to the related income. Peoples has also elected to apply a practical expedient related to capitalizable costs, which are the commissions paid to financial advisors, and

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will expense these commissions paid to financial advisors as incurred, as these costs are related to thetrust and investment income and would have been amortized within one year or less if they had been capitalized, the same period over which the income was earned.

Electronic Banking Income: Electronic banking income consists of two revenue streams related to interchange income and promotional and usage income.

Peoples recognizes interchange income over time, on a monthly basis, and is based on transactional volume of debit card activity completed by its customers during the month in which income is recognized. Peoples is obligated to certain debit card activity being performed by its customers over a certain period of time. Interchange income is variable as it is based on the transaction volume of debit card activity completed by Peoples' customers. Peoples estimates the variable consideration based upon the most likely amount method, and does not expect or anticipate a significant reversal of revenue in future periods. Payment is due from the vendor within one month of the completed customer debit card activity. Peoples has elected to apply a practical expedient of right to invoice when recognizing interchange income, as Peoples has fulfilled the required performance obligations, the vendor has consumed the service, and Peoples has a right to the related income.

Peoples also recognizes promotional and usage income over time, on a monthly basis, and is related to branding of debit cards and promotion or use of certain services provided by third-party vendors. Peoples is obligated to brand its debit cards in a certain manner, and promote and use services provided by third-party vendors. Promotional and usage income is variable as it is based on certain metrics achieved for promotion and usage of services provided by the third-party vendors. Peoples estimates the variable consideration based upon the most likely amount method, and does not expect or anticipate a significant reversal of revenue in future periods. Payment is due from the third-party vendor within 45 days of the monthly fulfillment of Peoples' performance obligation. Peoples has elected to apply a practical expedient of right to invoice when recognizing promotional and usage income, as Peoples has fulfilled the required performance obligations, the vendor has consumed the service, and Peoples has a right to the related income.

Deposit Account Service Charges: Deposit account service charges consist of two revenue streams related to ongoing maintenance fees for deposit accounts and certain transactional-based fees.

Ongoing maintenance fees are recognized on a monthly basis, with the monthly period beginning on the day of the month on which the account was opened. Ongoing maintenance fee income is variable as these fees can be reduced if a customer meets certain qualifying metrics. Peoples estimates the variable consideration based upon the most likely amount method, and does not expect or anticipate a significant reversal of revenue in future periods. For accounts that are assessed maintenance fees through the account analysis process, payment is due from the customer within one month of the monthly period in which the account was open. For all other accounts, monthly maintenance fees are assessed to the account on the last day of the monthly period. Peoples has elected to apply a practical expedient of right to invoice when recognizing ongoing maintenance fees for deposit accounts, as Peoples has fulfilled the required performance obligations, the customer has consumed the service, and Peoples has a right to the related income.

Transactional-based deposit account fees are recognized at a point in time, which is at the completion of the relevant transaction. Peoples is obligated to perform certain transactions as requested by its consumer and business deposit account customers, which are outside of the normal maintenance requirements. Transactional-based deposit account fee income is variable as these fees are directly related to a service request from the customer. Peoples estimates the variable consideration based upon the most likely amount method, and does not expect or anticipate a significant reversal of revenue in future periods. Payment is due from the customer at the time of completion of the requested transaction.

Commercial Loan Swap Fees: Commercial loan swap fees consist of income related to transactions in which Peoples acts as an agent between a third-party vendor and certain Peoples commercial loan customers for which an interest rate swap occurs. Commercial loan swap fees are recognized at a point in time, when the transaction has been completed, and there is no recourse or further performance obligation required of Peoples. Commercial loan swap fee income is variable as these fees are a certain percentage of the total swap fee collected on a completed transaction. Peoples estimates the variable consideration based upon the most likely amount method, and does not expect or anticipate a significant reversal of revenue in future periods. Payment is due from the customer at the time of completion of the requested transaction.

Other Non-Interest Income: Other non-interest income includes certain revenues that are transactional-based, such as wire transfer fees, money order fees and other ancillary fees or services. These transactional-based fees are recognized as income at a point in time, at the completion of the relevant transaction. Transactional-based other non-interest income is variable as these fees are directly related to a service request from the customer. Peoplesestimates the variable consideration based upon the most likely amount method, and does not expect or anticipate a significant

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reversal of revenue in future periods. Payment is due from the customer at the time of completion of the requested transaction.

The following table details Peoples' revenue from contracts with customers for the three months ended March 31, 2018:

	Three Months Ended
(Dollars in thousands)	March 31, 2018
Insurance income:
Commission and fees from sale of insurance policies (a)	$	3,189
Fees related to third-party administration services (a)	119
Performance-based commissions (b)	1,347
Trust and investment income (a)	3,068
Electronic banking income:
Interchange income (a)	2,264
Promotional and usage income (a)	521
Deposit account service charges:
Ongoing maintenance fees for deposit accounts (a)	675
Transactional-based fees (b)	1,445
Commercial loan swap fees (b)	116
Other non-interest income transactional-based fees (b)	281
Total	$	13,025
Timing of revenue recognition:
Services transferred over time	$	9,836
Services transferred at a point in time	3,189
Total	$	13,025

(a)Services transferred over time

(b)Services transferred at a point in time

Peoples records contract liabilities for payments received for commission income related to the sale of insurance policies, for which the performance obligations have not yet been fulfilled. The contract liabilities are recognized as income over time, during the period in which the performance obligations are fulfilled, which is over the insurance policy period. The following table details the change in Peoples' contract liabilities for the period ended March 31, 2018:

	Contract Liabilities
(Dollars in thousands)
Balance, January 1, 2018 (a)	$	4,700
Additional deferred income	1,824
Recognition of income previously deferred	(2,215		)
Balance, March 31, 2018	$	4,309

(a)The amount of $3.1 million reported elsewhere throughout the document is the $4.7 million noted above, net of federal corporate income taxes.

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The following table details the impact of the adoption of ASU 2014-09 to Peoples' consolidated statements of income and balance sheets, compared to amounts that would have been recognized under previous guidance:

	At or For the Three Months Ended
	March 31, 2018
(Dollars in thousands)	As Reported		Impact of ASC 606			Amounts Recognized Under Previous Guidance
Non-interest income:
Insurance income	$	4,655	$	(391	)	$	4,264
Liabilities:
Accrued expenses and other liabilities	37,977		2,746			35,231
Stockholders' equity:
Retained earnings	143,297		(2,746		)	146,043

Note 12 Acquisitions

On April 13, 2018, Peoples completed its acquisition of ASB for total consideration of $41.5 million, which reflected the conversion of each of the 1,979,034 outstanding ASB common shares into $20.00 in cash or 0.592 in Peoples' common shares. ASB merged into Peoples and ASB's wholly-owned subsidiary, American Savings Bank, fsb, which operates six full-service branches in southern Ohio and northern Kentucky, merged into Peoples Bank.

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ITEM 2 MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

SELECTED FINANCIAL DATA

The following data should be read in conjunction with the Unaudited Consolidated Financial Statements and Management’s Discussion and Analysis that follows:

	At or For the Three Months Ended
	March 31,
	2018			2017
Per Common Share Data
Earnings per common share – basic	$	0.64		$	0.49
Earnings per common share – diluted	0.64			0.48
Cash dividends declared per common share	0.26			0.20
Book value per common share (a)	24.87			24.25
Tangible book value per common share (a)(b)	$	17.04		$	16.28
Weighted-average number of common shares outstanding – basic	18,126,089			18,029,991
Weighted-average number of common shares outstanding – diluted	18,256,035			18,192,957
Common shares outstanding at end of period	18,365,035			18,270,508
Closing stock price at end of period	$	35.45		$	31.66
Significant Ratios
Return on average stockholders' equity (c)	10.48		%	8.14		%
Return on average tangible stockholders' equity (c)(d)	16.14		%	12.95		%
Return on average assets (c)	1.32		%	1.04		%
Average stockholders' equity to average assets	12.63		%	12.74		%
Average loans to average deposits	87.08		%	86.51		%
Net interest margin (c)(e)	3.66		%	3.55		%
Efficiency ratio (f)	61.75		%	64.89		%
Pre-provision net revenue to total average assets (c)(g)	1.81		%	1.52		%
Dividend payout ratio	40.64		%	41.25		%
Total investment securities as percentage of total assets (a)	24.14		%	25.13		%
Asset Quality Ratios
Nonperforming loans as a percent of total loans (a)(h)	0.72		%	0.95		%
Nonperforming assets as a percent of total assets (a)(h)	0.48		%	0.64		%
Nonperforming assets as a percent of total loans and other real estate owned ("OREO") (a)(h)	0.72		%	0.98		%
Criticized loans as a percent of total loans (a)(i)	4.84		%	4.50		%
Classified loans as a percent of total loans (a)(j)	1.86		%	2.51		%
Allowance for loan losses as a percent of total loans (a)	0.78		%	0.82		%
Allowance for loan losses as a percent of nonperforming loans (a)(h)	109.08		%	86.71		%
Provision for loan losses as a percent of average total loans	0.34		%	0.11		%
Net charge-offs as a percentage of average total loans (c)	0.34		%	0.11		%
Capital Information (a)
Common equity tier 1 capital ratio (k)	13.28		%	13.05		%
Tier 1 risk-based capital ratio	13.57		%	13.34		%
Total risk-based capital ratio (tier 1 and tier 2)	14.31		%	14.27		%
Leverage ratio	9.86		%	9.60		%
Common equity tier 1 capital	335,393			310,856
Tier 1 capital	342,544			317,526
Total capital (tier 1 and tier 2)	361,343			340,147
Total risk-weighted assets	2,524,970			2,382,874
Tangible equity to tangible assets (b)	8.97		%	8.98		%

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(a) Data presented as of the end of the period indicated.

(b) These amounts represent non-GAAP financial measures since they exclude goodwill and other intangible assets.  Additional information regarding the calculation of these non-GAAP financial measures can be found under the caption “Capital/Stockholders’ Equity.”

(c) Ratios are presented on an annualized basis.

(d) These amounts represent non-GAAP financial measures since they exclude the after-tax impact of amortization of other intangible assets from earnings and exclude the balance sheet impact of goodwill and other intangible assets acquired through acquisitions on stockholders' equity. Additional information regarding the calculation of these non-GAAP financial measures can be found under the caption “Return on Average Tangible Stockholders' Equity Ratio.”

(e) Information presented on a fully tax-equivalent basis.

(f) These amounts represent non-GAAP financial measures and include total non-interest expense (less amortization of other intangible assets) as a percentage of fully tax-equivalent net interest income plus total non-interest income (excluding all gains and all losses). Additional information regarding the calculation of these non-GAAP financial measures can be found under the caption “Efficiency Ratio.”

(g) These amounts represent non-GAAP financial measures since they exclude the provision for (recovery of) loan losses and all gains and losses included in earnings.  Additional information regarding the calculation of these non-GAAP financial measures can be found under the caption “Pre-Provision Net Revenue.”

(h) Nonperforming loans include loans 90 days past due and accruing, renegotiated loans and nonaccrual loans. Nonperforming assets include nonperforming loans and other real estate owned.

(i) Includes loans categorized as special mention, substandard and doubtful.

(j) Includes loans categorized as substandard and doubtful.

(k) Peoples' capital conservation buffer was 6.42% at March 31, 2018 and 6.27% at March 31, 2017, compared to 2.50% for the fully phased-in capital conservation buffer required by January 1, 2019.

Forward-Looking Statements

Certain statements in this Form 10-Q, which are not historical fact, are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995.  These forward-looking statements are identified by the fact they are not historical facts and include words such as “anticipate,” “estimate,” “may,” “feel,” “expect,” “believe,” “plan,” “will,” “would,” “should,” “could” and similar expressions.

These forward-looking statements reflect management's current expectations based on all information available to management and its knowledge of Peoples' business and operations. Additionally, Peoples' financial condition, results of operations, plans, objectives, future performance and business are subject to risks and uncertainties that may cause actual results to differ materially. These factors include, but are not limited to:

(1) the success, impact, and timing of the implementation of Peoples' business strategies, including the successful integration of acquisitions and the expansion of consumer lending activity;

(2) Peoples' ability to integrate acquisitions, including the merger with ASB, which may be unsuccessful, or may be more difficult, time-consuming or costly than expected;

(3) competitive pressures among financial institutions or from non-financial institutions which may increase significantly, including product and pricing pressures, changes to third-party relationships and revenues, and Peoples' ability to attract, develop and retain qualified professionals;

(4) changes in the interest rate environment due to economic conditions and/or the fiscal policies of the United States ("U.S.") government and the Board of Governors of the Federal Reserve System (the "Federal Reserve Board"), which may adversely impact interest rates, interest margins, loan demand and interest rate sensitivity;

(5) uncertainty regarding the nature, timing and effect of legislative or regulatory changes or actions, promulgated and to be promulgated by governmental and regulatory agencies in the State of Ohio, the Federal Deposit Insurance Corporation, the Federal Reserve Board and the Consumer Financial Protection Bureau, which may subject Peoples, its subsidiaries, or one or more acquired companies to a variety of new and more stringent legal and regulatory requirements which adversely affect their respective businesses, including in particular the rules and regulations promulgated and to be promulgated under the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, and the Basel III regulatory capital reform;

(6) uncertainties in Peoples' preliminary review of, and additional analysis of, the impact of Tax Cuts and Jobs Act;

(7) local, regional, national and international economic conditions and the impact these conditions may have on Peoples, its customers and its counterparties, and Peoples' assessment of the impact, which may be different than anticipated;

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(8) Peoples may issue equity securities in connection with future acquisitions, which could cause ownership and economic dilution to Peoples' current shareholders;

(9) changes in prepayment speeds, loan originations, levels of nonperforming assets, delinquent loans and charge-offs, which may be less favorable than expected and adversely impact the amount of interest income generated;

(10) adverse changes in the economic conditions and/or activities, including, but not limited to, continued economic uncertainty in the U.S., the European Union (including uncertainty surrounding the actions to be taken to implement the referendum by British voters to exit the European Union), Asia and other areas, which could decrease sales volumes, add volatility to the global stock markets and increase loan delinquencies and defaults;

(11) deterioration in the credit quality of Peoples' loan portfolio, which may adversely impact the provision for loan losses;

(12) changes in accounting standards, policies, estimates or procedures which may adversely affect Peoples' reported financial condition or results of operations;

(13) Peoples' assumptions and estimates used in applying critical accounting policies, which may prove unreliable, inaccurate or not predictive of actual results;

(14) adverse changes in the conditions and trends in the financial markets, including political developments, which may adversely affect the fair value of securities within Peoples' investment portfolio, the interest rate sensitivity of Peoples' consolidated balance sheet, and the income generated by Peoples' trust and investment activities;

(15) Peoples' ability to receive dividends from its subsidiaries;

(16) Peoples' ability to maintain required capital levels and adequate sources of funding and liquidity;

(17) the impact of minimum capital thresholds established as a part of the implementation of Basel III;

(18) the impact of larger or similar-sized financial institutions encountering problems, which may adversely affect the banking industry and/or Peoples' business generation and retention, funding and liquidity;

(19) the costs and effects of new federal and state laws, and regulatory and legal developments, including the outcome of potential regulatory or other governmental inquiries and legal proceedings and results of regulatory examinations;

(20) Peoples' ability to secure confidential information 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;

(21) Peoples' reliance on, and the potential failure of, a number of third-party vendors to perform as expected, including its primary core banking system provider;

(22) Peoples' ability to anticipate and respond to technological changes which can impact Peoples' ability to respond to customer needs and meet competitive demands;

(23) changes in consumer spending, borrowing and saving habits, whether due to the recently enacted tax legislation, changes in business and economic conditions, legislative or regulatory initiatives, or other factors, which may be different than anticipated;

(24) the overall adequacy of Peoples' risk management program;

(25) the impact on Peoples' businesses, as well as on the risks described above, of various domestic or international widespread natural or other disasters, pandemics, cyber attacks, civil unrest, military or terrorist activities or international conflicts;

(26) significant changes in the tax laws, which may adversely affect the fair values of deferred tax assets and obligations of states and political subdivisions held in Peoples' investment securities portfolio;

(27) Peoples' continued ability to grow deposits; and

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(28) 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’ Annual Report on Form 10-K for the fiscal year ended December 31, 2017.

All forward-looking statements speak only as of the filing date of this Form 10-Q and are expressly qualified in their entirety by the cautionary statements.  Although management believes the expectations in these forward-looking statements are based on reasonable assumptions within the bounds of management’s knowledge of Peoples’ business and operations, it is possible that actual results may differ materially from these projections.  Additionally, Peoples undertakes no obligation to update these forward-looking statements to reflect events or circumstances after the filing date of this Form 10-Q or to reflect the occurrence of unanticipated events except as may be required by applicable legal requirements.  Copies of documents filed with the SEC are available free of charge at the SEC’s website at www.sec.gov and/or from Peoples' website – www.peoplesbancorp.com under the “Investor Relations” section.

This discussion and analysis should be read in conjunction with the audited Consolidated Financial Statements, and Notes thereto, contained in Peoples’ 2017 Form 10-K, as well as the Unaudited Consolidated Financial Statements, Notes to the Unaudited Consolidated Financial Statements, ratios, statistics and discussions contained elsewhere in this Form 10-Q.

Business Overview

The following discussion and analysis of Peoples’ Unaudited Consolidated Financial Statements is presented to provide insight into management’s assessment of the financial condition and results of operations.

Peoples offers diversified financial products and services through 81 locations, including 71 full-service bank branches, and 77 Automated Teller Machines ("ATMs") in northeastern, central, southwestern and southeastern Ohio, west central West Virginia and northeastern Kentucky through its financial service units – Peoples Bank and Peoples Insurance Agency, LLC ("Peoples Insurance"), a subsidiary of Peoples Bank.  Peoples Bank is subject to regulation and examination primarily by the Ohio Division of Financial Institutions (the "ODFI"), the Federal Reserve Bank of Cleveland and the Federal Deposit Insurance Corporation (the "FDIC"). Peoples Bank is also subject to regulations of the Consumer Financial Protection Bureau (the "CFPB") which regulates consumer financial products and services and certain financial services providers. Peoples Insurance is subject to regulation by the Ohio Department of Insurance and the state insurance regulatory agencies of those states in which Peoples Insurance may do business.

Peoples’ products and services include traditional banking products, such as deposit accounts, lending products and trust services.  Peoples provides services through traditional offices, ATMs, mobile banking and telephone and internet-based banking.  Peoples also offers a complete array of insurance products and makes available custom-tailored fiduciary, employee benefit plan and asset management services.  Brokerage services are offered by Peoples exclusively through an unaffiliated registered broker-dealer located at Peoples Bank's offices.

Critical Accounting Policies

The accounting and reporting policies of Peoples conform to US GAAP and to general practices within the financial services industry.  The preparation of the financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes.  Actual results could materially differ from those estimates.  Management has identified the accounting policies that, due to the judgments, estimates and assumptions inherent in those policies, are critical to understanding Peoples’ Unaudited Consolidated Financial Statements, and Management’s Discussion and Analysis at March 31, 2018, which were unchanged from the policies disclosed in Peoples’ 2017 Form 10-K.

 Summary of Recent Transactions and Events

The following is a summary of recent transactions and events that have impacted or are expected to impact Peoples’ results of operations or financial condition: 

◦ On April 13, 2018, Peoples completed the previously announced merger with ASB Financial Corp. ("ASB"). ASB merged into Peoples and ASB's wholly-owned subsidiary, American Savings Bank, fsb, which operated six full service bank branches and two loan production offices in southern Ohio and northern Kentucky, merged into Peoples Bank. As of December 31, 2017, ASB had approximately $288.3 million in total assets, which included approximately $247.2 million in net loans, and approximately $203.2 million in total deposits. Aggregate consideration of $41.5 million was paid for the acquisition. Refer to Note 12 of the Notes to the Unaudited Consolidated Financial Statements for additional information.

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◦ As of December 31, 2017, Peoples recorded a revaluation of its deferred tax assets and liabilities in light of the applicable provisions of the recently-enacted Tax Cuts and Jobs Act. Previously, Peoples had recognized its deferred tax assets and deferred tax liabilities at a federal corporate income tax rate of 35%, and the new law required the use of a 21% federal corporate income tax rate. As a result, Peoples wrote down its net deferred tax assets by $0.9 million in the fourth quarter of 2017, which had a direct impact on income tax expense recorded during that period.

◦ On October 2, 2017, Peoples Insurance Agency acquired a property and casualty focused independent insurance agency with annual net revenue of approximately $0.8 million located in the Cleveland, Ohio area. The acquisition did not materially impact Peoples' financial position, results of operations, or cash flows.

◦ During the third quarter of 2017, Peoples reduced its position in certain investment securities. This action was taken as a result of the high appreciation in the market value of these securities. The sales completed resulted in a net gain on investment securities of $1.9 million, and are not a normal occurrence for our business.

◦ Peoples continually evaluates its overall balance sheet position given the interest rate environment. During the second quarter of 2017, Peoples borrowed an additional $45.0 million of long-term FHLB non-amortizing advances, which have interest rates ranging from 1.74% to 2.03% and mature between 2020 and 2022.

◦ During the first quarter of 2017, Peoples borrowed an additional $30.0 million of long-term FHLB non-amortizing advances, which have interest rates ranging from 1.20% to 1.46% and mature between 2018 and 2019.

◦ During 2017, Peoples closed six full-service bank branches, four located in Ohio, and two located in West Virginia. Peoples continues to evaluate its bank branch network in an effort to optimize efficiency.

◦ On January 31, 2017, Peoples Insurance Agency acquired a third-party insurance administration company located in Piketon, Ohio for total cash consideration of $0.5 million, and recorded $0.5 million of customer relationship intangibles. The acquisition did not materially impact Peoples' financial position, results of operations or cash flows.

◦ On January 27, 2017, Peoples entered into two $10.0 million forward starting interest rate swaps, which will become effective later in 2018 and mature between 2025 and 2027, with interest rates ranging from 2.47% to 2.53%. For additional information regarding Peoples' interest rate swaps, refer to Note 9 of the Notes to the Unaudited Consolidated Financial Statements.

◦ Peoples' net interest income and net interest margin are impacted by changes in market interest rates based upon actions taken by the Federal Reserve Board (the "Fed"), either directly or through its Open Market Committee. These actions include changing its target Federal Funds Rate (the interest rate at which banks lend money to each other), Discount Rate (the interest rate charged to banks for money borrowed from a Federal Reserve Bank) and longer-term market interest rates (primarily U.S. Treasury securities). Interest rates also are affected by investor demand for U.S. Treasury securities. The resulting changes in the yield curve slope have a direct impact on reinvestment rates for Peoples' earning assets.

◦ The Fed began tightening monetary policy in December 2015 by raising the benchmark Federal Funds Target Rate. Since then, the rate has increased six times from a range of 0%-.25% to its current range of 1.50%-1.75%. Expectations are for two to three more rate hikes in 2018 and possibly two to three in 2019. The Fed has also begun to reduce the size of its $4.5 trillion dollar balance sheet, which could result in higher interest rates as well. However, there was no indication that the Fed would alter its current posture of tightening monetary policy at future meetings. Peoples is closely monitoring interest rates, both foreign and domestic; and potential impacts of changes in interest rates to Peoples Bank's operations.

The impact of these transactions and events, where material, is discussed in the applicable sections of this Management’s Discussion and Analysis of Results of Operations and Financial Condition.

EXECUTIVE SUMMARY

Peoples recorded net income for the quarter ended March 31, 2018 of $11.7 million, or $0.64 per diluted common share, compared to $8.8 million, or $0.48 per diluted common share, for the same quarter a year ago and net income of $9.0 million, or $0.49 per diluted common share, for the linked quarter ended December 31, 2017. The increased earnings in the first quarter of 2018 compared to the first quarter of 2017 was due primarily to an increase in net interest income and non-interest income, and a decrease in income tax expense, offset by a higher provision for loan losses. The increased earnings compared to the fourth quarter of 2017 was attributable to decreased income tax expense.

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Net interest income was $29.4 million in the first quarter of 2018, compared to $26.9 million for the same quarter a year ago and $29.1 million for the linked quarter, while net interest margin was 3.66%, 3.55%, and 3.63%, respectively. In the first quarter of 2018, the net interest income and margin were positively impacted by loan growth and previous increases in interest rates, coupled with proceeds received on an investment security that had previously been written down due to an other-than-temporary impairment and continued accretion income from acquisitions.

Peoples' provision for loan losses for the three months ended March 31, 2018 was $2.0 million, compared to $0.6 million for the first quarter of 2017 and $1.1 million for the linked quarter. During the first quarter of 2018, provision for loan losses increased due to circumstances that decreased the likelihood of collectibility for one acquired commercial loan relationship, which was ultimately charged off in the amount of $827,000 at the end of the first quarter of 2018. The higher provision for loan losses recorded during the first quarter of 2018 compared to the previous quarters was also reflective of the continued loan growth which was partially offset by improvements in certain asset quality metrics.

For the first quarter of 2018, total non-interest income increased $1.3 million, or 9%, compared to the first quarter of 2017, and increased $1.2 million, or 9%, from the linked quarter. The increase in total non-interest income for the first quarter of 2018 compared to the first quarter of 2017 was primarily due to an increase in insurance income, resulting from the implementation of a new accounting standard, and the acquisition of a third-party insurance administration company on January 31, 2017 and a property and casualty focused independent insurance agency on October 2, 2017. In addition, the implementation of Accounting Standards Update 2016-01, requiring changes in the fair value of equity securities to be recognized in income beginning January 1, 2018, added $460,000 to total non-interest income during the first quarter of 2018. Another factor that contributed to the increase compared to the first quarter of 2017 was Small Business Administration ("SBA") loan sale revenue of $313,000 recorded during the first quarter of 2018. The increase in total non-interest income compared to the fourth quarter of 2017 was largely attributable to annual performance-based insurance commissions, which are primarily recognized in the first quarter of each year. Other factors that contributed to the increase were the recognition in income of changes in the fair value of equity securities and the SBA revenue, which were partially offset by the decrease in the gain on investment securities and a decrease in deposit account service charges.

Total non-interest expense for the first quarter of 2018, was $28.2 million, compared to $27.3 million for the first quarter of 2017 and $27.4 million for the linked quarter. The increases in non-interest expenses from the previous year first quarter and the linked quarter were primarily due to increases in salaries and employee benefit costs. In the first quarter of 2018, the Board of Directors granted a one-time stock award of unrestricted common shares to all full-time and part-time employees who did not already participate in the equity plan, which resulted in an expense of $388,000. Additionally impacting the increase in salaries and employee benefit costs were annual merit increases and an increase in employee count. Compared to the first quarter of 2017, the increase in total non-interest expense was also partially attributable to an increase in data processing and software expense, driven by the implementation of enhanced functionalities for Peoples' core banking system, including certain mobile banking tools made available to customers. Compared to the fourth quarter of 2017, the increase in salaries and employee benefit costs was partially offset by decreased professional fees. The non-core charges recorded during the first quarter of 2018 included acquisition costs of $149,000, compared to none in the first quarter of 2017, and $341,000 of acquisition costs and $242,000 of pension settlement charges in the fourth quarter of 2017.

Peoples' efficiency ratio, calculated as total non-interest expense less amortization of other intangible assets divided by fully tax-equivalent ("FTE") net interest income, plus total non-interest income, excluding all gains and losses, for the first quarter of 2018 was 61.75%, compared to 64.89% for the first quarter of 2017 and 62.07% for the linked quarter.

At March 31, 2018, total assets were $3.63 billion, compared to $3.58 billion at December 31, 2017. The $53.2 million, or 1%, increase was primarily the result of growth in loan balances, net of deferred fees and costs, of $45.2 million, or 8% annualized, as commercial loan balances increased $32.4 million, or 10% annualized, during the quarter. The growth in commercial loan balances was split between commercial and industrial loans, which grew $16.5 million, or 14% annualized, and commercial real estate loans, which grew $15.9 million, or 7% annualized. Indirect consumer lending also contributed to the total increase in loan balances, with growth of $7.1 million, or 8% annualized, during the quarter.

Total liabilities were $3.18 billion at March 31, 2018, up $55.0 million, or 2%, since December 31, 2017. The increase in liabilities during the first three months of 2018 was primarily due to an increase in deposits of $82.9 million, or 3%, offset partially by a decline in total borrowings of $26.5 million, or 8%. The increase in deposits was primarily due to a $77.4 million, or 29%, increase in governmental deposits, which are seasonally higher in the first quarter of each year compared to other quarters.

At March 31, 2018, total stockholders' equity was $456.8 million, a decrease of $1.8 million, compared to December 31, 2017. The decrease in total stockholders' equity, as well as the tangible equity to tangible asset ratio, and the tangible book value per common share, was largely a result of the decline in the market value of debt securities held within the investment

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portfolio. Regulatory capital ratios remained significantly higher than "well capitalized" minimums. Peoples' common equity tier 1 risk-based capital ratio was 13.28% at March 31, 2018, versus 13.23% at December 31, 2017; while, the tier 1 risk-based capital ratio was 13.57% at March 31, 2018, compared to 13.52% at December 31, 2017. The total risk-based capital ratio was 14.31% at March 31, 2018, compared to 14.39% at December 31, 2017. In addition, Peoples' tangible equity to tangible asset ratio was 8.97%, and its tangible book value per common share was $17.04 at March 31, 2018, versus 9.14% and $17.17, respectively, at December 31, 2017.

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RESULTS OF OPERATIONS

Net Interest Income

Net interest income, the amount by which interest income exceeds interest expense, remains Peoples' largest source of revenue.  The amount of net interest income earned by Peoples each quarter is affected by various factors, including changes in market interest rates due to the Fed’s monetary policy, the level and degree of pricing competition for both loans and deposits in Peoples’ markets, and the amount and composition of Peoples' earning assets and interest-bearing liabilities. 

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The following tables detail Peoples’ average balance sheets for the periods presented:

	For the Three Months Ended
	March 31, 2018							December 31, 2017							March 31, 2017
(Dollars in thousands)	Average Balance			Income/ Expense		Yield/Cost		Average Balance			Income/ Expense		Yield/Cost		Average Balance			Income/ Expense		Yield/Cost
Short-term investments	$	11,291		$	52	1.87	%	$	17,847		$	61	1.36	%	$	7,415		$	15	0.82	%
Investment securities (a)(b):
Taxable	775,659			5,687		2.93	%	774,926			5,180		2.67	%	748,835			4,754		2.54	%
Nontaxable	97,134			814		3.35	%	100,727			1,024		4.07	%	113,779			1,222		4.30	%
Total investment securities	872,793			6,501		2.98	%	875,653			6,204		2.83	%	862,614			5,976		2.77	%
Loans (b)(c):
Commercial real estate, construction	118,589			1,333		4.50	%	120,471			1,312		4.26	%	94,215			993		4.22	%
Commercial real estate, other	765,076			9,124		4.77	%	753,172			9,035		4.69	%	734,442			8,423		4.59	%
Commercial and industrial	479,792			5,571		4.64	%	451,647			5,345		4.63	%	433,068			4,545		4.20	%
Residential real estate (d)	491,713			5,309		4.32	%	496,325			5,455		4.40	%	531,457			5,769		4.34	%
Home equity lines of credit	108,620			1,271		4.75	%	110,610			1,282		4.60	%	111,112			1,159		4.23	%
Consumer, indirect	343,128			3,130		3.70	%	338,615			3,217		3.77	%	269,821			2,232		3.35	%
Consumer, direct	68,422			1,162		6.89	%	69,815			1,300		7.39	%	70,206			1,218		7.04	%
Total loans	2,375,340			26,900		4.54	%	2,340,655			26,946		4.54	%	2,244,321			24,339		4.35	%
Less: Allowance for loan losses	(18,683		)					(18,840		)					(18,585		)
Net loans	2,356,657			26,900		4.58	%	2,321,815			26,946		4.58	%	2,225,736			24,339		4.39	%
Total earning assets	3,240,741			33,453		4.14	%	3,215,315			33,211		4.08	%	3,095,765			30,330		3.93	%
Intangible assets	144,190							143,942							145,546
Other assets	212,112							202,986							205,040
Total assets	$	3,597,043						$	3,562,243						$	3,446,351
Deposits:
Savings accounts	$	452,882		$	64	0.06	%	$	443,056		$	64	0.06	%	$	439,206		$	59	0.05	%
Governmental deposit accounts	291,454			217		0.30	%	281,389			205		0.29	%	283,605			131		0.19	%
Interest-bearing demand accounts	567,252			221		0.16	%	565,885			233		0.16	%	286,487			78		0.11	%
Money market accounts	367,945			226		0.25	%	377,839			240		0.25	%	398,839			187		0.19	%
Retail certificates of deposit	338,226			765		0.92	%	342,165			765		0.89	%	342,837			726		0.86	%
Brokered certificates of deposit	156,645			720		1.86	%	138,013			566		1.63	%	84,929			306		1.46	%
Total interest-bearing deposits	2,174,404			2,213		0.41	%	2,148,347			2,073		0.38	%	1,835,903			1,487		0.33	%
Borrowed funds:
Short-term FHLB advances	144,306			663		1.86	%	86,858			402		1.84	%	134,411			221		0.67	%
Retail repurchase agreements	102,175			305		1.20	%	103,118			278		1.08	%	70,885			30		0.17	%
Total short-term borrowings	246,481			968		1.59	%	189,976			680		1.42	%	205,296			251		0.50	%
Long-term FHLB advances	118,995			564		1.92	%	137,478			653		1.88	%	125,154			661		2.14	%
Wholesale repurchase agreements	—			—		—	%	13,478			125		3.71	%	40,000			363		3.63	%
Other borrowings	7,106			122		6.87	%	7,055			118		6.69	%	6,899			110		6.38	%
Total long-term borrowings	126,101			686		2.20	%	158,011			896		2.25	%	172,053			1,134		2.66	%
Total borrowed funds	372,582			1,654		1.80	%	347,987			1,576		1.80	%	377,349			1,385		1.48	%
Total interest-bearing liabilities	2,546,986			3,867		0.61	%	2,496,334			3,649		0.58	%	2,213,252			2,872		0.53	%
Non-interest-bearing deposits	553,444							569,759							758,446
Other liabilities	42,381							37,502							35,663
Total liabilities	3,142,811							3,103,595							3,007,361
Total stockholders’ equity	454,232							458,648							438,990
Total liabilities and stockholders’ equity	$	3,597,043						$	3,562,243						$	3,446,351
Interest rate spread (b)				$	29,586	3.53	%				$	29,562	3.50	%				$	27,458	3.40	%
Net interest margin (b)						3.66	%						3.63	%						3.55	%

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(a) Average balances are based on carrying value.

(b) Interest income and yields are presented on a fully tax-equivalent basis using a 21% federal corporate income tax rate for the first quarter of 2018 and 35% for the previously reported periods.

(c) Average balances include nonaccrual, impaired loans and loans held for sale. Interest income includes interest earned and received on nonaccrual loans prior to the loans being placed on nonaccrual status. Loan fees included in interest income were immaterial for all periods presented.

(d) Loans held for sale are included in the average loan balance listed. Related interest income on loans originated for sale prior to the loan being sold is included in loan interest income.

The following table provides an analysis of the changes in fully tax-equivalent ("FTE") net interest income:

	Three Months Ended March 31, 2018 Compared to
(Dollars in thousands)	December 31, 2017									March 31, 2017
Increase (decrease) in:	Rate			Volume			Total (a)			Rate			Volume			Total (a)
INTEREST INCOME:
Short-term investments	$	85		$	(94	)	$	(9	)	$	26		$	11		$	37
Investment Securities (b):
Taxable	450			57			507			758			175			933
Nontaxable	(175		)	(35		)	(210		)	(245		)	(163		)	(408		)
Total investment income	275			22			297			513			12			525
Loans (b):
Commercial real estate, construction	142			(121		)	21			70			270			340
Commercial real estate, other	45			44			89			343			358			701
Commercial and industrial	11			215			226			509			517			1,026
Residential real estate	(96		)	(50		)	(146		)	(31		)	(429		)	(460		)
Home equity lines of credit	110			(121		)	(11		)	273			(161		)	112
Consumer, indirect	(248		)	161			(87		)	246			652			898
Consumer, direct	(105		)	(33		)	(138		)	(31		)	(25		)	(56		)
Total loan income	(141		)	95			(46		)	1,379			1,182			2,561
Total interest income	219			23			242			1,918			1,205			3,123
INTEREST EXPENSE:
Deposits:
Savings accounts	—			—			—			3			2			5
Governmental deposit accounts	6			6			12			82			4			86
Interest-bearing demand accounts	(15		)	3			(12		)	44			99			143
Money market accounts	(4		)	(10		)	(14		)	125			(86		)	39
Brokered certificates of deposit	81			73			154			(169		)	418			249
Retail certificates of deposit	54			(54		)	—			191			13			204
Total deposit cost	122			18			140			276			450			726
Borrowed funds:
Short-term borrowings	48			240			288			680			37			717
Long-term borrowings	20			(230		)	(210		)	(35		)	(413		)	(448		)
Total borrowed funds cost	68			10			78			645			(376		)	269
Total interest expense	190			28			218			921			74			995
Net interest income	$	29		$	(5	)	$	24		$	997		$	1,131		$	2,128

(a)The change in interest due to both rate and volume has been allocated to rate and volume changes in proportion to the

relationship of the dollar amounts of the changes in each.

(b) Interest income and yields are presented on a fully tax-equivalent basis using a 21% federal corporate income tax rate for the first quarter of 2018 and 35% for the first quarter of 2017.

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Net interest margin, which is calculated by dividing FTE net interest income by average interest-earning assets, serves as an important measurement of the net revenue stream generated by the volume, mix and pricing of interest-earning assets and interest-bearing liabilities.  FTE net interest income is calculated by increasing interest income to convert tax-exempt income earned on obligations of states and political subdivisions to the pre-tax equivalent of taxable income using a the federal corporate income tax rate of 21% for the first quarter of 2018 and 35% for the previously reported periods.  

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

	Three Months Ended
	March 31, 2018		December 31, 2017		March 31, 2017
(Dollars in thousands)
Net interest income, as reported	$	29,359	$	29,122	$	26,945
Taxable equivalent adjustments	227		440		513
Fully tax-equivalent net interest income	$	29,586	$	29,562	$	27,458

Loan growth, and the previous increases in interest rates, positively impacted net interest income and the net interest margin for the first quarter of 2018, compared to the previous periods. During the first quarter of 2018, proceeds of $341,000 were received on an investment security that had been previously written down due to an other-than-temporary impairment, which added 4 basis points to the net interest margin. The increase in net interest income compared to the fourth quarter of 2017 was muted by two fewer days in which interest was earned during the first quarter of 2018. The decline in the taxable equivalent adjustments was a result of the change in the federal corporate income tax rate, which was 21% for the first quarter of 2018 compared to 35% for the first and fourth quarters of 2017. Net interest income and net interest margin benefited from accretion income from acquisitions, net of amortization expense, which was $566,000 for the first quarter of 2018, compared to $829,000 for the first quarter of 2017 and $715,000 for the linked quarter, which added 7 basis points, 11 basis points and 8 basis points to net interest margin, respectively.

Additional information regarding changes in the Unaudited Consolidated Balance Sheets can be found under appropriate captions of the “FINANCIAL CONDITION” section of this discussion. Additional information regarding Peoples' interest rate risk and the potential impact of interest rate changes on Peoples' results of operations and financial condition can be found later in this discussion under the caption "FINANCIAL CONDITION - Interest Rate Sensitivity and Liquidity."

Provision for Loan Losses

The following table details Peoples’ provision for loan losses:

	Three Months Ended
	March 31, 2018			December 31, 2017			March 31, 2017
(Dollars in thousands)
Loan losses	$	1,842		$	900		$	400
Checking account overdrafts	141			215			224
Provision for loan losses	$	1,983		$	1,115		$	624
As a percentage of average total loans (a)	0.34		%	0.19		%	0.11		%
(a) Presented on an annualized basis

The provision for loan losses recorded represents the amount needed to maintain the adequacy of the allowance for loan losses based on management’s quarterly analysis of the loan portfolio and procedural methodology that estimates the amount of probable credit losses.  This process considers various factors that affect losses, such as changes in Peoples’ loan quality, historical loss experience and current economic conditions. During the first quarter of 2018, provision for loan losses increased due to circumstances that decreased the likelihood of collectibility for one acquired commercial loan relationship, which was ultimately charged off in the amount of $827,000 at the end of the first quarter of 2018. The higher provision for loan losses recorded during the first quarter of 2018, compared to the first quarter of 2017 and the linked quarter, was also due to loan growth, partially offset by improvements in certain asset quality metrics.

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

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Net Gain (Loss) on Asset Disposals and Other Transactions

The following table details the net gain (loss) on asset disposals and other transactions recognized by Peoples:

	Three Months Ended
	March 31, 2018			December 31, 2017			March 31, 2017
(Dollars in thousands)
Net gain (loss) on other assets	$	79		$	(64	)	$	(3	)
Net loss on other real estate owned ("OREO")	(5		)	(105		)	—
Net gain on other transactions	—			25			—
Net gain (loss) on asset disposals and other transactions	$	74		$	(144	)	$	(3	)

The net gain on other assets in the first quarter of 2018 related to increased indirect lending activity in connection with which assets had been repossessed and sold at a gain and or loss. The loss on other assets during the fourth quarter of 2017 related to the write-down of a closed office that was for sale. The loss on OREO during the fourth quarter of 2017 related to the sale of two commercial properties during the quarter.

Non-Interest Income

Insurance income comprised the largest portion of the first quarter 2018 total non-interest income.  The following table details Peoples' insurance income:

	Three Months Ended
	March 31, 2018		December 31, 2017		March 31, 2017
(Dollars in thousands)
Property and casualty insurance commissions	$	2,645	$	2,665	$	2,242
Performance-based commissions	1,347		50		1,306
Life and health insurance commissions	544		449		410
Other fees and charges	119		179		144
Insurance income	$	4,655	$	3,343	$	4,102

The increase in insurance income for the first quarter of 2018 compared to the first quarter of 2017 was primarily due to income attributable to the implementation of a new accounting standard. On January 1, 2018, Peoples adopted ASU 2014-09 - Revenue from Contracts with Customers (Topic 606), which primarily impacted recognition of insurance income and which will create some volatility in insurance income on a quarterly basis going forward. The impact of the implementation of the new standard on the first quarter of 2018 earnings was an increase in insurance income of $391,000, of which $310,000 was recognized in property and casualty insurance commissions and $81,000 in the life and health insurance commissions.

Also impacting the increase for the first quarter of 2018, was the continued growth resulting from the acquisition of a third-party insurance administration company on January 31, 2017 and a property and casualty focused independent insurance agency on October 2, 2017. Insurance income is higher in the first quarter as the majority of performance-based commissions typically are recorded annually in the first quarter and are based on a combination of factors, such as loss experience of insurance policies sold, production volumes, and overall financial performance of the individual insurance carriers.

Peoples' fiduciary and brokerage revenues 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 tables detail Peoples’ trust and investment income and related assets under administration and management:

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	Three Months Ended
	March 31, 2018		December 31, 2017		March 31, 2017
(Dollars in thousands)
Fiduciary	$	1,606	$	1,595	$	1,503
Brokerage	964		963		809
Employee benefits	498		503		370
Trust and investment income	$	3,068	$	3,061	$	2,682

	March 31, 2018		December 31, 2017		September 30, 2017		June 30, 2017		March 31, 2017
(Dollars in thousands)
Trust assets under administration and management	$	1,447,636	$	1,452,959	$	1,418,360	$	1,393,435	$	1,362,243
Brokerage assets under administration and management	882,018		887,303		862,530		836,192		805,361
Total assets under administration and management	$	2,329,654	$	2,340,262	$	2,280,890	$	2,229,627	$	2,167,604
Quarterly average	$	2,352,798	$	2,314,015	$	2,254,997	$	2,199,162	$	2,122,036

The increase in trust and investment income compared to the first quarter of 2017 was primarily due to the increase in assets under administration and management, and retirement benefit plans.

Deposit account service charges, which are based on the recovery of costs associated with services provided, comprised a significant portion of People's non-interest income. The following table details Peoples' deposit account service charges:

	Three Months Ended
	March 31, 2018		December 31, 2017		March 31, 2017
(Dollars in thousands)
Overdraft and non-sufficient funds fees	$	1,439	$	1,699	$	1,614
Account maintenance fees	675		652		536
Other fees and charges	6		133		279
Deposit account service charges	$	2,120	$	2,484	$	2,429

The decline in overdrafts and non-sufficient funds fees was partially due to changes made to the calculation of fees to be more in-line with industry practices. The amount of deposit account service charges, particularly fees for overdrafts and non-sufficient funds, is largely dependent on the timing and volume of customer activity. 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. The increase in account maintenance fees in the first quarter of 2018 compared to the prior periods was largely due to implementation of new consumer checking products that occurred during the second half of 2017.

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

	Three Months Ended
	March 31, 2018		December 31, 2017		March 31, 2017
(Dollars in thousands)
E-banking income	$	2,785	$	2,666	$	2,561
Bank owned life insurance income	468		479		493
Mortgage banking income	351		483		387
Commercial loan swap fee income	116		237		268
Other non-interest income	1,331		366		412

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 clients. Revenue is derived largely from ATM and debit cards, as other services are mainly provided at no charge to the customers. The amount of e-banking income is largely dependent on the timing and volume of customer activity. Peoples has continued to experience increased customer volume and activity, as shown by the continued income growth.

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Mortgage banking income is comprised mostly of net gains from the origination and sale of long-term, fixed rate real estate loans in the secondary market, as well as servicing income for sold loans. 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. In the first quarter of 2018, Peoples sold approximately $10.1 million of loans to the secondary market compared to $13.6 million in the first quarter of 2017 and $16.9 million in the linked quarter. The volume of sales has a direct impact on the amount of mortgage banking income.

Commercial loan swap fee income is largely dependent on the timing and volume of customer activity.

Other non-interest income increased $919,000 from the first quarter of 2017, and $965,000 from the linked quarter. The increases were primarily due to the implementation of a new accounting standard, which changed how the fair value of equity securities was to be recognized beginning January 1, 2018. This accounting change added $460,000 to other non-interest income during the first quarter of 2018. Also contributing to the increase was $313,000 of income from SBA loans, primarily due to the gain on sale of SBA loans, recorded in the first quarter of 2018, compared to no income reported in the first or fourth quarters of 2017. Peoples continues to review income capabilities and has identified the sale of SBA loans as a source of other income.

Non-Interest Expense

Salaries and employee benefit costs remain Peoples' largest non-interest expense, accounting for over one-half of total non-interest expense.  The following table details Peoples' salaries and employee benefit costs:

	Three Months Ended
	March 31, 2018			December 31, 2017			March 31, 2017
(Dollars in thousands)
Base salaries and wages	$	10,372		$	9,809		$	10,067
Sales-based and incentive compensation	2,236			2,593			2,099
Employee benefits	1,571			1,571			1,927
Stock-based compensation	1,072			377			568
Deferred personnel costs	(431		)	(634		)	(360		)
Payroll taxes and other employment costs	1,170			874			1,195
Salaries and employee benefit costs	$	15,990		$	14,590		$	15,496
Full-time equivalent employees:
Actual at end of period	802			774			776
Average during the period	792			779			780

The increases in base salaries and wages compared to the first quarter of 2017 and the linked quarter were due primarily to annual merit increases, coupled with an increase in employee count. The decrease in employee benefits between the first quarter of 2018 and the first quarter of 2017 was due to lower medical insurance costs, which were the result of reduced claims. The increase in stock-based compensation compared to the prior periods was due primarily to the Board of Directors' grant of a one-time stock award of unrestricted common shares to all full-time and part-time employees who did not already participate in the equity plans, which resulted in expense of $388,000.

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

	Three Months Ended
	March 31, 2018		December 31, 2017		March 31, 2017
(Dollars in thousands)
Depreciation	$	1,218	$	1,201	$	1,243
Repairs and maintenance costs	848		643		672
Net rent expense	209		242		219
Property taxes, utilities and other costs	591		567		579
Net occupancy and equipment expense	$	2,866	$	2,653	$	2,713

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The increase in repairs and maintenance costs was due to the increased maintenance costs associated with snow removal and other weather conditions.

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

	Three Months Ended
	March 31, 2018		December 31, 2017		March 31, 2017
(Dollars in thousands)
Professional fees	$	1,718	$	2,043	$	1,610
E-banking expense	1,528		1,387		1,514
Data processing and software expense	1,322		1,111		1,142
Amortization of other intangible assets	754		913		863
Franchise tax expense	644		496		583
FDIC insurance expense	366		477		433
Communication expense	344		341		410
Marketing expense	325		592		280
Foreclosed real estate and other loan expenses	228		284		196
Other non-interest expense	2,136		2,519		2,091

Professional fees for the first quarter of 2018 decreased $325,000, or 16%, from the linked quarter due primarily to reduced acquisition-related fees. Professional fees included $31,000, $10,000 and $327,000 of acquisition-related fees in the first quarter of 2018, the first quarter of 2017 and the linked quarter, respectively.

The growth in e-banking expense resulted from increased transaction volume and usage of debit card and other internet and mobile banking capabilities during the period.

Data processing and software expense increased $180,000, or 16%, from the first quarter of 2017 and $211,000, or 19%, from the linked quarter. The increases were driven by the implementation of enhanced functionalities for Peoples' core banking system, including making certain mobile banking tools available to customers.

Other non-interest expense decreased $383,000 from the linked quarter due primarily to operational losses that were recorded in the fourth quarter of 2017.

Income Tax Expense

For the three months ended March 31, 2018, Peoples recorded income tax expense of $2.4 million, for an effective tax rate of 16.9%. The decreased effective tax rate in the first quarter of 2018 included a tax benefit of $290,000 as a result of stock awards that settled or vested during the quarter. The majority of the vesting of such awards is recorded annually in the first quarter. Peoples' current estimate is that the effective tax rate for the entire year of 2018 will be approximately 18.5% to 19.5%, which excludes the impact of discrete items, such as the tax benefit of $290,000 that was noted above. In comparison, Peoples recorded an income tax expense of $3.9 million for the same period in 2017, for an effective tax rate of 30.4%. The decrease in the effective tax rate from the previous year was due to the recently-enacted Tax Cuts and Jobs Act, which reduced the federal statutory corporate income tax rate from 35% in 2017 to 21% in 2018.

The Tax Cuts and Jobs Act was enacted on December 22, 2017 and ASC 740 required Peoples to reflect the changes associated with the Act’s provisions in the fourth quarter of 2017. The Act is complex and has extensive implications for Peoples' federal taxes. At December 31, 2017, Peoples partially completed the accounting for the tax effects of enactment of the Act; however, in certain cases, Peoples made reasonable estimates of the effects of a reduced federal tax rate on its existing deferred tax balances. In other cases, Peoples has not been able to make a reasonable estimate and continued to account for those items based on its existing accounting under ASC 740, and the provisions of the tax laws that were in effect immediately prior to enactment. In all cases, Peoples will continue to make and refine its calculations during the re-measurement period as additional analysis is completed. In addition, these estimates may be affected as Peoples gains a more thorough understanding of the new tax law.

Additional information regarding Income Taxes can be found in Note 12 of the Notes to the Consolidated Financial Statements included in Peoples' 2017 Form 10-K.

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Pre-Provision Net Revenue

Pre-provision net revenue ("PPNR") has become a key financial measure used by state and federal bank regulatory agencies when assessing the capital adequacy of financial institutions. PPNR is defined as net interest income plus total fee-based income minus total non-interest expense and, therefore, excludes the provision for (recovery of) loan losses and all gains and/or losses included in earnings. As a result, PPNR represents the earnings capacity that can be either retained in order to build capital or used to absorb unexpected losses and preserve existing capital.

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

	Three Months Ended
	March 31, 2018			December 31, 2017			March 31, 2017
(Dollars in thousands)
Pre-provision net revenue:
Income before income taxes	$	14,124		$	14,340		$	12,661
Add: provision for loan losses	1,983			1,115			624
Add: net loss on OREO	5			105			—
Add: net loss on other transactions	—			39			3
Less: net gain on investment securities	1			764			340
Less: net gain on other assets	79			—			—
Pre-provision net revenue	$	16,032		$	14,835		$	12,948
Total average assets	$	3,597,043		$	3,562,243		$	3,446,351
Pre-provision net revenue to total average assets (a)	1.81		%	1.65		%	1.52		%
(a) Presented on an annualized basis.

For the first three months of 2018, compared to the first three months of 2017, the increase in pre-provision net revenue was due largely to increases in net interest income and fee-based income, coupled with continued expense management.

Core Non-Interest Expense

Core non-interest expense is a financial measure used to evaluate Peoples' recurring expense stream. This measure is non-GAAP since it excludes the impact of acquisition-related costs and pension settlement charges.

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

	Three Months Ended
	March 31, 2018		December 31, 2017		March 31, 2017
(Dollars in thousands)
Core non-interest expense:
Total non-interest expense	$	28,221	$	27,406	$	27,331
Less: acquisition-related costs	149		341		—
Less: pension settlement charges	—		242		—
Core non-interest expense	$	28,072	$	26,823	$	27,331

Efficiency Ratio

The efficiency ratio is a key financial measure used to monitor performance. 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 fee-based income. This measure is non-GAAP since it excludes amortization of other intangible assets and all gains and/or losses included in earnings, and uses FTE net interest income.

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

	Three Months Ended
	March 31, 2018			December 31, 2017			March 31, 2017
(Dollars in thousands)
Efficiency ratio:
Total non-interest expense	$	28,221		$	27,406		$	27,331
Less: Amortization of other intangible assets	754			913			863
Adjusted total non-interest expense	$	27,467		$	26,493		$	26,468
Total non-interest income	14,969			13,739			13,671
Less net gain on investment securities	1			764			340
Less net gain (loss) on asset disposals and other transactions	74			(144		)	(3		)
Total fee-based income	$	14,894		$	13,119		$	13,334
Net interest income	$	29,359		$	29,122		$	26,945
Add: Fully tax-equivalent adjustment	227			440			513
Net interest income on a fully tax-equivalent basis	$	29,586		$	29,562		$	27,458
Adjusted revenue	$	44,480		$	42,681		$	40,792
Efficiency ratio	61.75		%	62.07		%	64.89		%
Core non-interest expense	$	28,072		$	26,823		$	27,331
Less: Amortization of other intangible assets	754			913			863
Adjusted core non-interest expense	$	27,318		$	25,910		$	26,468
Adjusted revenue	44,480			42,681			40,792
Efficiency ratio adjusted for non-core items	61.42		%	60.71		%	64.89		%

The lower efficiency ratio in the first quarter of 2018 compared to the first quarter of 2017 was primarily due to an increase in net interest income and total fee-based income. The increase in the adjusted efficiency ratio from the linked quarter was due to increased total non-interest expense. Operating leverage continued to be positive for the first quarter of 2018 compared to the first quarter of 2017 as revenue increased 10%, while expenses only grew 3% compared to the first quarter of 2017.

Management is targeting an efficiency ratio of 61% to 63% for the full year of 2018, absent acquisition-related costs and other non-core charges.

Return on Average Tangible Stockholders' Equity

The return on average tangible stockholders' equity ratio is a key financial measure used to monitor performance. The return on tangible stockholders' equity is calculated as net income (less after-tax impact of amortization of other intangible assets) divided by tangible stockholders' equity. This measure is non-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.

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	Three Months Ended
	March 31, 2018			December 31, 2017			March 31, 2017
(Dollars in thousands)
Annualized net income excluding amortization of other intangible assets:
Net income	$	11,741		$	9,001		$	8,809
Add: amortization of other intangible assets	754			913			863
Less: tax effect of amortization of other intangible assets (a)	158			320			302
Net income excluding amortization of other intangible assets	$	12,337		$	9,594		$	9,370
Days in the quarter	90			92			90
Days in the year	365			365			365
Annualized net income	$	47,616		$	35,710		$	35,725
Annualized net income excluding amortization of other intangible assets	$	50,033		$	38,063		$	38,001
Average tangible stockholders' equity:
Total average stockholders' equity	$	454,232		$	458,648		$	438,990
Less: average goodwill and other intangible assets	144,190			143,942			145,546
Average tangible stockholders' equity	$	310,042		$	314,706		$	293,444
Return on average stockholders' equity ratio:
Annualized net income	$	47,616		$	35,710		$	35,725
Average stockholders' equity	$	454,232		$	458,648		$	438,990
Return on average stockholders' equity	10.48		%	7.79		%	8.14		%
Return on average tangible stockholders' equity ratio:
Annualized net income excluding amortization of other intangible assets	$	50,033		$	38,063		$	38,001
Average tangible stockholders' equity	$	310,042		$	314,706		$	293,444
Return on average tangible stockholders' equity	16.14		%	12.09		%	12.95		%

(a) Used a 21% federal corporate income tax rate for the first quarter of 2018 and 35% for the previously reported periods.

FINANCIAL CONDITION

Cash and Cash Equivalents

At March 31, 2018, Peoples' interest-bearing deposits in other banks increased $3.4 million from December 31, 2017. The total cash and cash equivalent balance included $16.9 million of excess cash reserves being maintained at the Federal Reserve Bank of Cleveland at March 31, 2018, compared to $9.3 million at December 31, 2017. 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 2018, Peoples' total cash and cash equivalents increased $435,000 as Peoples' net cash used in investing activities of $61.5 million was less than the sum of net cash provided by financing and operating activities of $50.4 million and $11.7 million, respectively. Peoples' investing activities reflected a net increase of $46.4 million in loans and purchases of $44.4 million in available-for-sale investment securities, which were partially offset by $30.8 million in net proceeds from sales, principal payments, calls and prepayments on available-for-sale and held-to-maturity investment securities. Financing activities included a net increase of $82.8 million in deposits which was offset partially by a net decrease of $26.6 million in borrowings and $4.7 million of cash dividends paid.

Through the first three months of 2017, Peoples' total cash and cash equivalents decreased by $1.8 million. Peoples' net cash used in investing activities of $33.3 million exceeded cash provided by financing and operating activities of $18.1 million and $13.4 million, respectively. Peoples' investing activities reflected purchases of $41.1 million in available-for-sale

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investments and a net increase of $23.5 million in loans, which were partially offset by $32.1 million in net proceeds from principal payments, calls and prepayments on available-for-sale investment securities. Financing activities included a net increase of $192.4 million in deposits which was offset partially by a net decrease of $169.9 million in borrowings and $3.5 million of cash dividends paid.

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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Investment Securities

The following table provides information regarding Peoples’ investment portfolio:

(Dollars in thousands)	March 31, 2018			December 31, 2017			September 30, 2017		June 30, 2017		March 31, 2017
Available-for-sale securities, at fair value:
Obligations of:
States and political subdivisions	97,205			101,569			104,560		111,390		114,712
Residential mortgage-backed securities	681,746			673,664			672,106		664,341		640,299
Commercial mortgage-backed securities	6,864			6,976			7,128		8,092		16,424
Bank-issued trust preferred securities	5,095			5,129			5,154		5,144		4,964
Equity securities (a)	—			7,849			8,073		10,121		10,562
Total fair value	$	790,910		$	795,187		$	797,021	$	799,088	$	786,961
Total amortized cost	$	808,689		$	797,732		$	792,810	$	792,803	$	782,947
Net unrealized (loss) gain	$	(17,779	)	$	(2,545	)	$	4,211	$	6,285	$	4,014
Held-to-maturity securities, at amortized cost:
Obligations of:
States and political subdivisions	$	3,807		$	3,810		$	3,812	$	3,815	$	3,818
Residential mortgage-backed securities	31,590			32,487			33,648		34,264		34,812
Commercial mortgage-backed securities	4,254			4,631			4,703		4,981		5,392
Total amortized cost	$	39,651		$	40,928		$	42,163	$	43,060	$	44,022
Other investment securities (a)	$	46,756		$	38,371		$	38,371	$	38,371	$	38,371
Total investment portfolio:
Amortized cost	$	895,096		$	877,031		$	873,344	$	874,234	$	865,340
Carrying value	$	877,317		$	874,486		$	877,555	$	880,519	$	869,354

(a) As of January 1, 2018, Peoples adopted ASU 2016-01, resulting in the reclassification of equity securities from available-for-sale investment securities to other

investment securities. At December 31, 2017, $7.8 million of equity securities were included in available-for-sale investment securities, and at March 31, 2018, $7.5

million of equity securities were included in other investment securities.

Peoples' investment in residential and commercial mortgage-backed securities largely consists of securities either guaranteed by the U.S. government or issued by U.S. government sponsored agencies, such as Fannie Mae and Freddie Mac. The remaining portions of Peoples' mortgage-backed securities consist of securities issued by other entities, including other financial institutions, which are not guaranteed by the U.S. government.

The amount of these “non-agency” securities included in the residential mortgage-backed securities totals above was as follows:

(Dollars in thousands)	March 31, 2018			December 31, 2017			September 30, 2017			June 30, 2017			March 31, 2017
Total fair value	$	1,478		$	1,924		$	2,067		$	2,502		$	2,702
Total amortized cost	1,607			2,109			2,253			2,703			2,916
Net unrealized loss	$	(129	)	$	(185	)	$	(186	)	$	(201	)	$	(214	)

Management continues to reinvest the principal runoff from the non-agency securities in U.S. agency investments, which accounted for the decline in the past year. At March 31, 2018, Peoples' non-agency portfolio consisted entirely of first lien residential mortgages, with nearly all of the underlying loans in these securities originated prior to 2004 and possessing fixed interest rates. Management continues to monitor the non-agency portfolio closely for leading indicators of increasing stress and will continue to be proactive in taking actions to mitigate such risk when necessary.

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

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Loans

The following table provides information regarding outstanding loan balances:

(Dollars in thousands)	March 31, 2018			December 31, 2017			September 30, 2017			June 30, 2017			March 31, 2017
Gross originated loans:
Commercial real estate, construction	$	99,757		$	107,118		$	111,187		$	103,039		$	93,886
Commercial real estate, other	627,932			595,447			573,256			567,537			535,474
Commercial real estate	727,689			702,565			684,443			670,576			629,360
Commercial and industrial	455,243			438,051			407,468			392,097			384,548
Residential real estate	302,890			304,523			304,094			306,385			308,153
Home equity lines of credit	87,722			88,902			88,421			88,229			85,512
Consumer, indirect	347,607			340,390			335,436			305,580			283,106
Consumer, direct	67,386			67,010			68,286			67,287			66,283
Consumer	414,993			407,400			403,722			372,867			349,389
Deposit account overdrafts	543			849			507			521			721
Total originated loans	$	1,989,080		$	1,942,290		$	1,888,655		$	1,830,675		$	1,757,683
Gross acquired loans (a):
Commercial real estate, construction	$	8,054		$	8,319		$	8,565		$	9,130		$	9,431
Commercial real estate, other	156,115			165,120			174,157			182,682			194,581
Commercial real estate	164,169			173,439			182,722			191,812			204,012
Commercial and industrial	33,815			34,493			36,462			39,376			44,189
Residential real estate	194,063			184,864			194,950			206,502			216,059
Home equity lines of credit	20,008			20,575			22,366			23,481			24,516
Consumer, indirect	253			329			408			533			656
Consumer, direct	940			1,147			1,472			1,980			2,387
Consumer	1,193			1,476			1,880			2,513			3,043
Total acquired loans	$	413,248		$	414,847		$	438,380		$	463,684		$	491,819
Total loans	$	2,402,328		$	2,357,137		$	2,327,035		$	2,294,359		$	2,249,502
Percent of loans to total loans:
Commercial real estate, construction	4.5		%	4.9		%	5.1		%	4.9		%	4.6		%
Commercial real estate, other	32.6		%	32.3		%	32.2		%	32.7		%	32.4		%
Commercial real estate	37.1		%	37.2		%	37.3		%	37.6		%	37.0		%
Commercial and industrial	20.4		%	20.0		%	19.1		%	18.8		%	19.1		%
Residential real estate	20.7		%	20.8		%	21.4		%	22.4		%	23.3		%
Home equity lines of credit	4.5		%	4.6		%	4.8		%	4.9		%	4.9		%
Consumer, indirect	14.5		%	14.5		%	14.4		%	13.3		%	12.6		%
Consumer, direct	2.8		%	2.9		%	3.0		%	3.0		%	3.1		%
Consumer	17.3		%	17.4		%	17.4		%	16.3		%	15.7		%
Deposit account overdrafts	NM			NM			NM			NM			NM
Total percentage	100.0		%	100.0		%	100.0		%	100.0		%	100.0		%
Residential real estate loans being serviced for others	$	412,154		$	412,965		$	409,199		$	402,516		$	399,279

(a) Includes all loans acquired, and related loan discount or premium recorded in 2012 and thereafter. 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).

While commercial loans comprise the largest portion of Peoples Bank's loan portfolio, residential real estate lending remains a focus of Peoples Bank. The originated loans may either be retained in Peoples Bank's loan portfolio, or sold into the secondary market. During the first quarter of 2018, Peoples acquired a loan portfolio in the amount of $16.5 million which increased the acquired residential real estate loans. Peoples plans to continue to purchase residential real estate loans as customer demand in the Peoples geographic areas has decreased due to increasing interest rates. Peoples Bank's portfolio of residential real estate loans comprised 20.7% of total loans at March 31, 2018, and 20.8% at December 31, 2017. Peoples Bank also had $3.6 million of residential real estate loans held for sale and was servicing $412.2 million of loans, consisting primarily of one-to-four family residential mortgages, previously sold in the secondary market. Peoples Bank requires

56

evidence of insurance at the time of the loan closing, and additionally, has a blanket insurance policy to cover residential real estate loans that do not include an insurance escrow account.

Period-end total loan balances at March 31, 2018 increased $152.8 million, or 7%, compared to March 31, 2017 period-end loan balances. Commercial loan balances grew $118.8 million, or 9%, compared to March 31, 2017, while indirect consumer loan balances increased $64.1 million, or 23%, compared to March 31, 2017.

Period-end total loan balances at March 31, 2018 increased $45.2 million, or 8% annualized, compared to December 31, 2017 period-end loan balances. Commercial loans balances grew $32.4 million, or 10% annualized, with commercial and industrial loans growing $16.5 million, or 14% annualized, during the quarter. Indirect consumer loans grew $7.1 million, or 8% annualized, during the first quarter of 2018 compared to December 31, 2017. The growth in indirect consumer loan balances has moderated over the last few quarters due to an increase in pricing that Peoples has implemented periodically over the last year, and increased competition.

Loan Concentration

Peoples categorizes its commercial loans according to standard industry classifications and monitors for concentrations in a single industry or multiple industries that could be impacted by changes in economic conditions in a similar manner. Peoples' commercial lending activities continue to be spread over a diverse range of businesses from all 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. The following table provides information regarding the largest concentrations of commercial real estate loans within the loan portfolio at March 31, 2018:

(Dollars in thousands)	Outstanding Balance		Loan Commitments		Total Exposure		% of Total
Commercial real estate, construction:
Apartment complexes	$	36,895	$	55,404	$	92,299	39.0	%
Light industrial	11,520		1,639		13,159		5.6	%
Mixed-use facilities	10,351		19,070		29,421		12.4	%
Child Care and Educational Services	8,600		546		9,146		3.9	%
Office buildings	7,478		22,092		29,570		12.5	%
Assisted living facilities and nursing homes	5,370		24,387		29,757		12.6	%
Other (a)	27,597		5,622		33,219		14.0	%
Total commercial real estate, construction	$	107,811	$	128,760	$	236,571	100.0	%

(a) All other outstanding balances are less than 2% of the total loan portfolio.

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(Dollars in thousands)	Outstanding Balance		Loan Commitments		Total Exposure		% of Total
Commercial real estate, other:
Office buildings and complexes:
Owner occupied	$	44,071	$	2,571	$	46,642	5.7	%
Non-owner occupied	46,734		498		47,232		5.8	%
Total office buildings and complexes	90,805		3,069		93,874		11.5	%
Apartment complexes	81,384		187		81,571		10.1	%
Mixed-use facilities:
Owner occupied	37,129		868		37,997		4.7	%
Non-owner occupied	39,582		1,491		41,073		5.1	%
Total mixed-use facilities	76,711		2,359		79,070		9.8	%
Light industrial facilities:
Owner occupied	50,702		38		50,740		6.3	%
Non-owner occupied	11,879		—		11,879		1.5	%
Total light industrial facilities	62,581		38		62,619		7.8	%
Lodging and lodging related	37,855		587		38,442		4.7	%
Assisted living facilities and nursing homes	35,202		951		36,153		4.5	%
Warehouse facilities	30,723		298		31,021		3.8	%
Retail facilities:
Owner occupied	27,410		663		28,073		3.4	%
Non-owner occupied	32,147		982		33,129		4.1	%
Total retail facilities	59,557		1,645		61,202		7.5	%
Other	309,229		18,438		327,667		40.3	%
Total commercial real estate, other	$	784,047	$	27,572	$	811,619	100.0	%

Peoples' commercial lending activities continue to focus on lending opportunities inside its primary and secondary market areas within Ohio, West Virginia and Kentucky. In all other states, the aggregate outstanding balances of commercial loans in each state were not material at either March 31, 2018 or December 31, 2017.

Allowance for Loan Losses

The amount of the allowance for loan losses at the end of each period represents management's estimate of expected losses from existing loans based upon its quarterly analysis of the loan portfolio. While this process involves allocations being made to specific loans and pools of loans, the entire allowance is available for all losses incurred within the loan portfolio.

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

(Dollars in thousands)	March 31, 2018			December 31, 2017			September 30, 2017			June 30, 2017			March 31, 2017
Commercial real estate	$	8,062		$	7,797		$	7,534		$	7,328		$	7,066
Commercial and industrial	5,269			5,813			6,415			6,727			6,534
Total commercial	13,331			13,610			13,949			14,055			13,600
Residential real estate	1,086			904			924			960			1,145
Home equity lines of credit	690			693			679			676			675
Consumer, indirect	3,034			2,944			2,814			2,549			2,409
Consumer, direct	473			464			441			402			438
Consumer	3,507			3,408			3,255			2,951			2,847
Deposit account overdrafts	76			70			70			83			111
Originated allowance for loan losses	18,690			18,685			18,877			18,725			18,378
Acquired allowance for loan losses	108			108			115			90			90
Allowance for loan losses	$	18,798		$	18,793		$	18,992		$	18,815		$	18,468
As a percent of total loans, net of deferred fees and costs	0.78		%	0.80		%	0.82		%	0.82		%	0.82		%

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At March 31, 2018, the allowance for loan losses was $18.8 million, compared to $18.5 million at March 31, 2017 and $18.8 million at December 31, 2017. The ratio of the allowance for loan losses as a percent of total loans net of deferred fees and costs, was 0.78% at March 31, 2018, compared to 0.82% at March 31, 2017 and 0.80% at December 31, 2017. The continued decline in this ratio was primarily due to the stabilization of Peoples' asset quality metrics.

The higher provision for loan losses recorded during the first quarter of 2018 compared to the previous quarters reflected the continued loan growth which was partially offset by improvements in certain asset quality metrics. The increase was also due to circumstances that decreased the likelihood of collectibility for one acquired commercial loan relationship, which was ultimately charged-off at March 31, 2018, in the amount of $827,000.

The significant allocations of allowance for loan losses to commercial loans reflect the higher credit risk associated with this type of lending and the size of this loan category in relationship to the entire loan portfolio. The allowance allocated to the residential real estate and consumer loan categories is based upon Peoples' allowance methodology for homogeneous pools of loans. The fluctuations in these allocations have been directionally consistent with the changes in loan quality, loss experience and loan balances in these categories.

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The following table summarizes Peoples’ net charge-offs and recoveries:

	Three Months Ended
(Dollars in thousands)	March 31, 2018			December 31, 2017			September 30, 2017			June 30, 2017			March 31, 2017
Gross charge-offs:
Commercial real estate, other	$	842		$	383		$	—		$	25		$	—
Commercial and industrial	31			10			48			—			117
Residential real estate	145			186			245			98			108
Home equity lines of credit	37			31			80			17			3
Consumer, indirect	929			617			494			516			483
Consumer, direct	110			104			106			129			40
Consumer	1,039			721			600			645			523
Deposit account overdrafts	205			271			246			172			349
Total gross charge-offs	$	2,299		$	1,602		$	1,219		$	957		$	1,100
Recoveries:
Commercial real estate, other	$	15		$	11		$	19		$	14		$	102
Commercial and industrial	—			—			1			—			—
Residential real estate	26			24			19			20			89
Home equity lines of credit	7			4			3			3			3
Consumer, indirect	134			166			175			217			206
Consumer, direct	69			27			46			56			50
Consumer	203			193			221			273			256
Deposit account overdrafts	70			56			47			47			65
Total recoveries	$	321		$	288		$	310		$	357		$	515
Net charge-offs (recoveries):
Commercial real estate, other	$	827		$	372		$	(19	)	$	11		$	(102	)
Commercial and industrial	31			10			47			—			117
Residential real estate	119			162			226			78			19
Home equity lines of credit	30			27			77			14			—
Consumer, indirect	795			451			319			299			277
Consumer, direct	41			77			60			73			(10		)
Consumer	836			528			379			372			267
Deposit account overdrafts	135			215			199			125			284
Total net charge-offs	$	1,978		$	1,314		$	909		$	600		$	585
Ratio of net charge-offs (recoveries) to average total loans (annualized):
Commercial real estate	0.14		%	0.06		%	—		%	0.01		%	(0.01		)%
Commercial and industrial	0.01		%	—		%	0.01		%	—		%	0.02		%
Residential real estate	0.02		%	0.03		%	0.04		%	0.01		%	—%
Home equity lines of credit	0.01		%	—		%	0.02		%	0.01		%	—%
Consumer, indirect	0.13		%	0.08		%	0.05		%	0.05		%	0.05		%
Consumer, other	0.01		%	0.01		%	0.01		%	0.01		%	—		%
Consumer	0.14		%	0.09		%	0.06		%	0.06		%	0.05		%
Deposit account overdrafts	0.02		%	0.04		%	0.03		%	0.02		%	0.05		%
Total	0.34		%	0.22		%	0.16		%	0.11		%	0.11		%

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The increase in net charge-offs during the first quarter of 2018 was primarily related to one acquired commercial loan relationship and increased consumer indirect charge-offs related to the increased portfolio. The trend for charge-offs on indirect loans continued to increase as the growth in loan balances in this portfolio over the last few quarters has started to season, which has resulted in the charge-offs being recorded.

The following table details Peoples’ nonperforming assets: 

(Dollars in thousands)	March 31, 2018		December 31, 2017		September 30, 2017		June 30, 2017		March 31, 2017
Loans 90+ days past due and accruing:
Commercial real estate, other	$	71	$	215	$	1,272	$	224	$	456
Commercial and industrial	—		45		832		919		1,358
Residential real estate	930		1,278		1,415		1,406		1,020
Home equity lines of credit	29		72		15		34		111
Consumer, indirect	—		—		—		—		61
Consumer, direct	—		16		8		—		—
Consumer	—		16		8		—		61
Total loans 90+ days past due and accruing	$	1,030	$	1,626	$	3,542	$	2,583	$	3,006
Nonaccrual loans:
Commercial real estate, construction	$	732	$	754	$	776	$	797	$	819
Commercial real estate, other	6,268		6,348		7,321		7,711		8,893
Commercial real estate	7,000		7,102		8,097		8,508		9,712
Commercial and industrial	1,252		506		584		626		639
Residential real estate	3,967		4,267		4,055		4,271		4,019
Home equity lines of credit	656		772		589		450		438
Consumer, indirect	180		158		79		138		153
Consumer, direct	11		32		31		23		1
Consumer	191		190		110		161		154
Total nonaccrual loans	$	13,066	$	12,837	$	13,435	$	14,016	$	14,962
Nonaccrual troubled debt restructurings (TDRs):
Commercial real estate, other	674		$	721	$	336	$	335	$	558
Commercial and industrial	487		492		694		821		910
Residential real estate	1,761		1,447		1,592		1,543		1,699
Home equity lines of credit	81		90		85		101		102
Consumer, indirect	126		98		75		102		58
Consumer, direct	7		7		2		3		4
Consumer	133		105		77		105		62
Total nonaccrual TDRs	3,136		2,855		2,784		2,905		3,331
Total nonperforming loans (NPLs)	17,232		17,318		19,761		19,504		21,299
Other real estate owned (OREO):
Commercial	—		$	—	$	167	$	545	$	545
Residential	99		208		109		107		132
Total OREO	99		208		276		652		677
Total nonperforming assets (NPAs)	$	17,331	$	17,526	$	20,037	$	20,156	$	21,976
Criticized loans (a)	116,243		90,418		96,671		111,480		101,284
Classified loans (b)	44,661		46,380		41,233		53,041		56,503

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(Dollars in thousands)	March 31, 2018		December 31, 2017		September 30, 2017		June 30, 2017		March 31, 2017
Asset Quality Ratios:
NPLs as a percent of total loans (c)(d)	0.72	%	0.73	%	0.85	%	0.85	%	0.95	%
NPAs as a percent of total assets (c)(d)	0.48	%	0.49	%	0.56	%	0.57	%	0.64	%
NPAs as a percent of total loans and OREO (c)(d)	0.72	%	0.74	%	0.86	%	0.88	%	0.98	%
Allowance for loan losses as a percent of NPLs (c)	109.08	%	108.52	%	96.11	%	96.47	%	86.71	%
Criticized loans as a percent of total loans (c)	4.84	%	3.84	%	4.15	%	4.86	%	4.50	%
Classified loans as a percent of total loans (c)	1.86	%	1.97	%	1.77	%	2.31	%	2.51	%

(a) Includes loans categorized as special mention, substandard or doubtful.

(b) Includes loans categorized as substandard or doubtful.

(c) Data presented as of the end of the period indicated.

(d) Nonperforming loans include loans 90+ days past due and accruing, renegotiated loans and nonaccrual loans. Nonperforming assets include nonperforming

loans and OREO.

Deposits

The following table details Peoples’ deposit balances:

(Dollars in thousands)	March 31, 2018		December 31, 2017		September 30, 2017		June 30, 2017		March 31, 2017
Non-interest-bearing deposits (a)	$	570,804	$	556,010	$	724,846	$	772,061	$	785,047
Interest-bearing deposits:
Interest-bearing demand accounts (a)	584,563		593,415		384,261		303,501		292,187
Savings accounts	461,440		446,714		440,633		443,110		445,720
Money market deposit accounts	364,232		371,376		388,876		397,211		386,999
Governmental deposit accounts	341,920		264,524		289,895		297,560		330,477
Retail certificates of deposit (CDs) (b)	335,843		338,673		343,122		352,758		353,918
Brokered certificates of deposit (b)	154,379		159,618		93,049		110,943		107,817
Total interest-bearing deposits	2,242,377		2,174,320		1,939,836		1,905,083		1,917,118
Total deposits	$	2,813,181	$	2,730,330	$	2,664,682	$	2,677,144	$	2,702,165

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

(b) Prior periods reclassified.

As of March 31, 2018, period-end deposits increased $82.9 million, or 3%, compared to December 31, 2017, and $111.0 million, or 4%, compared to March 31, 2017. Compared to the end of the linked quarter, the growth was largely due to an increase of $77.4 million, or 29%, in governmental deposits. Balances in governmental deposits are seasonally higher in the first quarter of each year compared to other quarters. Deposit balances for commercial customers in total were up $111.1 million at March 31, 2018 compared to December 31, 2017, and were partially offset by decreases of $28.2 million in consumer customer deposit balances.

Compared to the end of the first quarter of 2017, the increase was primarily attributable to growth of $78.1 million in demand deposit accounts, which was largely driven by increases in commercial customer balances. In addition, total certificates of deposit grew $28.5 million compared to the end of the first quarter of 2017. Total certificates of deposit increased compared to the first quarter of 2017 primarily due to the addition of relatively shorter term funding on the balance sheet in the form of brokered certificates of deposit. The brokered certificates of deposit are largely made up of one-way buy products offered through Certificate of Deposit Account Registry Service ("CDARS"). Increases in deposit balances for commercial customers contributed 71% of the growth in total deposits at March 31, 2018 compared to March 31, 2017.

Total demand deposit accounts comprised 41% of total deposits at March 31, 2018, compared to 40% at March 31, 2017 and 42% at December 31, 2017. Peoples continues its deposit strategy of growing low-cost core deposits, such as checking and savings accounts, and reducing its reliance on higher-cost, non-core deposits, such as retail CDs.

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Borrowed Funds

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

(Dollars in thousands)	March 31, 2018			December 31, 2017			September 30, 2017			June 30, 2017			March 31, 2017
Short-term borrowings:
FHLB advances	$	104,579		$	92,592		$	116,597		$	65,000		$	32,000
Retail repurchase agreements	98,896			116,899			77,120			77,532			73,752
Total short-term borrowings	203,475			209,491			193,717			142,532			105,752
Long-term borrowings:
FHLB advances	116,352			136,939			148,862			172,038			127,581
National market repurchase agreements	—			—			40,000			40,000			40,000
Unamortized debt issuance costs	(22		)	(27		)	(33		)	(39		)	(45		)
Junior subordinated debt securities	7,151			7,107			7,061			7,015			6,970
Total long-term borrowings	123,481			144,019			195,890			219,014			174,506
Total borrowed funds	$	326,956		$	353,510		$	389,607		$	361,546		$	280,258

Peoples' short-term FHLB advances generally consist of overnight borrowings maintained in connection with the management of Peoples' daily liquidity position. Peoples' short-term FHLB advances at March 31, 2018 increased $12.0 million and $72.6 million compared to December 31, 2017 and March 31, 2017, respectively. The increase in short-term borrowings from December 31, 2017 was primarily related to Peoples funding $20.0 million of interest rate swaps with a short-term FHLB advance at a weighted rate of 1.62%. The increase from March 31, 2017 was primarily due to $40.0 million of long-term FHLB advances, with fixed rates ranging from 1.20% to 3.92%, which were reclassified to short-term borrowings due to the advances maturing within one year, coupled with loan growth out-pacing deposit growth. Peoples continually evaluates the overall balance sheet position given the interest rate environment.

As of March 31, 2018, Peoples had seven interest rate swaps with a notional value of $60.0 million associated with Peoples' cash outflows for various FHLB advances. Two of the seven swaps became effective in January 2018, of the five remaining swaps two will become effective in April 2018, one in July of 2018 and two in October 2018. These dates roughly coincide with the maturity of existing FHLB advances.

Additional information regarding Peoples' interest rate swaps can be found in Note 9 of the Notes to the Unconsolidated Financial Statements.

Capital/Stockholders’ Equity

At March 31, 2018, 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. The capital conservation buffer is being phased in from 0.625% beginning January 1, 2016 to 2.50% by January 1, 2019, and applies to the common equity tier 1 ("CET1") ratio, the tier 1 capital ratio and the total risk-based capital ratio. At March 31, 2018, Peoples' had a capital conservation buffer of 6.42%, compared to 2.50% for the fully phased-in capital conservation buffer required by January 1, 2019. As such, Peoples exceeded the minimum ratios including the capital conservation buffer at March 31, 2018.

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

(Dollars in thousands)	March 31, 2018			December 31, 2017			September 30, 2017			June 30, 2017			March 31, 2017
Capital Amounts:
Common Equity Tier 1	$	335,393		$	327,172		$	326,966		$	318,849		$	310,856
Tier 1	342,544			334,279			334,027			325,865			317,826
Total (Tier 1 and Tier 2)	361,343			355,977			355,951			348,309			340,147
Net risk-weighted assets	$	2,524,970		$	2,473,329		$	2,456,797		$	2,419,335		$	2,382,874
Capital Ratios:
Common Equity Tier 1	13.28		%	13.23		%	13.31		%	13.18		%	13.05		%
Tier 1	13.57		%	13.52		%	13.60		%	13.47		%	13.34		%
Total (Tier 1 and Tier 2)	14.31		%	14.39		%	14.49		%	14.40		%	14.27		%
Leverage ratio	9.86		%	9.75		%	9.82		%	9.72		%	9.60		%

Many of Peoples' capital ratios at March 31, 2018 increased compared to December 31, 2017 largely due to earnings during the quarter, which exceeded the dividends declared and paid during the quarter by $7.0 million.

In addition to traditional capital measurements, management uses tangible capital measures to evaluate the adequacy of Peoples' stockholders' equity. Such ratios represent non-GAAP financial measures since their calculation removes the impact of goodwill and other intangible assets acquired through acquisitions on amounts reported in the Unaudited Consolidated Balance Sheets. 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. 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-GAAP financial measures to amounts reported in Peoples' Unaudited Consolidated Financial Statements:

(Dollars in thousands)	March 31, 2018			December 31, 2017			September 30, 2017			June 30, 2017			March 31, 2017
Tangible equity:
Total stockholders' equity	$	456,815		$	458,592		$	457,386		$	451,353		$	443,009
Less: goodwill and other intangible assets	143,820			144,576			143,859			144,692			145,505
Tangible equity	$	312,995		$	314,016		$	313,527		$	306,661		$	297,504
Tangible assets:
Total assets	$	3,634,929		$	3,581,686		$	3,552,412		$	3,525,126		$	3,459,276
Less: goodwill and other intangible assets	143,820			144,576			143,859			144,692			145,505
Tangible assets	$	3,491,109		$	3,437,110		$	3,408,553		$	3,380,434		$	3,313,771
Tangible book value per common share:
Tangible equity	$	312,995		$	314,016		$	313,527		$	306,661		$	297,504
Common shares outstanding	18,365,035			18,287,449			18,281,194			18,279,036			18,270,508
Tangible book value per common share	$	17.04		$	17.17		$	17.15		$	16.78		$	16.28
Tangible equity to tangible assets ratio:
Tangible equity	$	312,995		$	314,016		$	313,527		$	306,661		$	297,504
Tangible assets	$	3,491,109		$	3,437,110		$	3,408,553		$	3,380,434		$	3,313,771
Tangible equity to tangible assets	8.97		%	9.14		%	9.20		%	9.07		%	8.98		%

The decrease in the tangible equity to tangible assets ratio at March 31, 2018 compared to December 31, 2017, and March 31, 2017 was due largely the decline in the market value of investment securities held within the investment portfolio.

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Interest Rate Sensitivity and Liquidity

While Peoples is exposed to various business risks, the risks relating to interest rate sensitivity and liquidity are major risks that can materially impact future results of operations and financial condition due to their complexity and dynamic nature. The objective of Peoples' asset/liability management (“ALM”) function is to measure and manage these risks in order to optimize net interest income within the constraints of prudent capital adequacy, liquidity and safety. This objective requires Peoples to focus on interest rate risk exposure and adequate liquidity through its management of the mix of assets and liabilities, their related cash flows, and the rates earned and paid on those assets and liabilities. Ultimately, the ALM function is intended to guide management in the acquisition and disposition of earning assets, and selection of appropriate funding sources.

Interest Rate Risk

Interest rate risk (“IRR”) is one of the most significant risks arising in the normal course of business of financial services companies like Peoples. IRR is the potential for economic loss due to future interest rate changes that can impact the earnings stream as well as market values of financial assets and liabilities. Peoples' exposure to IRR is due primarily to differences in the maturity or repricing of interest-earning assets and interest-bearing liabilities. In addition, other factors, such as prepayments of loans and investment securities, or early withdrawal of deposits, can expose Peoples to IRR and increase interest costs or reduce revenue streams.

Peoples has assigned overall management of IRR to its Asset-Liability Committee (the “ALCO”), which has established an IRR management policy that sets minimum requirements and guidelines for monitoring and managing the level of IRR. The methods used by the ALCO to assess IRR remain unchanged from those disclosed in Peoples' 2017 Form 10-K.

The following table shows the estimated changes in net interest income and the economic value of equity based upon a standard, parallel shock analysis (dollars in thousands):

Increase (Decrease) in Interest Rate	Estimated Increase (Decrease) in Net Interest Income										Estimated (Decrease) Increase in Economic Value of Equity
(in Basis Points)	March 31, 2018					December 31, 2017					March 31, 2018					December 31, 2017
300	$	4,221		3.4	%	$	4,114		3.5	%	$	(87,702	)	(13.5	)%	$	(83,466	)	(11.9	)%
200	3,330			2.7	%	3,368			2.9	%	(59,420		)	(9.2	)%	(56,377		)	(8.0	)%
100	2,132			1.7	%	2,252			1.9	%	(29,953		)	(4.6	)%	(27,710		)	(4.0	)%
(100)	(7,954		)	(6.4	)%	(8,352		)	(7.1	)%	12,741			2.0	%	10,317			1.5	%

Estimated changes in net interest income and economic value of equity are partially driven by assumptions regarding the rate at which non-maturity deposits will reprice given a move in short-term interest rates. These assumptions are monitored closely by Peoples and were last updated in May 2017.

At March 31, 2018, Peoples' Unaudited Consolidated Balance Sheet remained positioned for a rising interest rate environment, as illustrated by the potential increase in net interest income shown in the above table. While parallel interest rate shock scenarios are useful in assessing the level of IRR inherent in Peoples' Unaudited Consolidated Balance Sheet, interest rates typically move in a non-parallel manner, with differences in the timing, direction and magnitude of changes in short-term and long-term interest rates. Thus, any benefit that could occur as a result of the Federal Reserve Board increasing short-term interest rates in future quarters could be offset by an inverse movement in long-term interest rates.

Peoples 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, 2018, Peoples had seven interest rate swaps with a notional value of $60.0 million. Additional information regarding Peoples' interest rate swaps can be found in Note 14 of the Notes to the Consolidated Financial Statements included in Peoples' 2017 Form 10-K..

Liquidity

In addition to IRR management, another major objective of the ALCO is to maintain a sufficient level of liquidity at Peoples Bank. The methods used by the ALCO to monitor and evaluate the adequacy of Peoples Bank's liquidity position remain unchanged from those disclosed in Peoples' 2017 Form 10-K.

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At March 31, 2018, Peoples Bank had liquid assets of $165.2 million, which represented 4.1% of total assets and unfunded commitments. This amount exceeded the minimal level by $85.2 million, or 2.1% of total loans and unfunded commitments, currently required under Peoples' liquidity policy. Peoples also had an additional $78.3 million of unpledged investment securities not included in the measurement of liquid assets.

Management believes the current balance of cash and cash equivalents, and anticipated cash flows from the investment portfolio, along with the availability of other funding sources, will allow Peoples to meet anticipated cash obligations, as well as special needs and off-balance sheet commitments.

Off-Balance Sheet Activities and Contractual Obligations

In the normal course of business, Peoples is a party to financial instruments with off-balance sheet risk necessary to meet the financing needs of Peoples' customers. These financial instruments include commitments to extend credit and standby letters of credit. The instruments involve, to varying degrees, elements of credit risk in excess of the amount recognized in the Unaudited Consolidated Balance Sheets. The contract amounts of these instruments express the extent of involvement Peoples has in these financial instruments.

Loan Commitments and Standby Letters of Credit

Loan commitments are made to accommodate the financial needs of Peoples' customers. Standby letters of credit are instruments issued by Peoples Bank guaranteeing the beneficiary payment by Peoples Bank in the event of default by Peoples Bank's customer in the performance of an obligation or service. 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 uses the same underwriting standards in making commitments and conditional obligations as it does for on-balance sheet instruments. The amount of collateral obtained is based on management's credit evaluation of the customer. Collateral held varies, but may include accounts receivable, inventory, property, plant, and equipment, and income-producing commercial properties.

Peoples Bank routinely engages in activities that involve, to varying degrees, elements of risk that are not reflected in whole or in part in the consolidated financial statements. These activities are part of Peoples Bank's normal course of business and include traditional off-balance sheet credit-related financial instruments, interest rate contracts and commitments to make additional capital contributions in low-income housing tax credit investments. Traditional off-balance sheet credit-related financial instruments continue to represent the most significant off-balance sheet exposure.

The following table details the total contractual amount of loan commitments and standby letters of credit:

(Dollars in thousands)	March 31, 2018		December 31, 2017		September 30, 2017		June 30, 2017		March 31, 2017
Home equity lines of credit	$	86,787	$	83,949	$	84,101	$	86,086	$	86,037
Unadvanced construction loans	106,410		112,475		103,732		92,669		116,168
Other loan commitments	267,482		260,552		280,974		302,710		267,132
Loan commitments	$	460,679	$	456,976	$	468,807	$	481,465	$	469,337
Standby letters of credit	$	20,481	$	20,873	$	21,788	$	26,458	$	25,797

Management does not anticipate that Peoples Bank’s current off-balance sheet activities will have a material impact on its future results of operations and financial condition based on historical experience and recent trends.

ITEM 3 QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

The information called for by this Item 3 is provided under the caption “Interest Rate Sensitivity and Liquidity” under “ITEM 2.  MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITIONAND RESULTS OF PERATIONS” in this Form 10-Q, and is incorporated herein by reference.

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ITEM 4 CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

Peoples' management, with the participation of Peoples' President and Chief Executive Officer and Peoples’ Executive Vice President, Chief Financial Officer and Treasurer, has evaluated the effectiveness of Peoples’ disclosure controls and procedures (as defined in Rule 13a-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) as of March 31, 2018.  Based upon that evaluation, Peoples’ President and Chief Executive Officer and Peoples’ Executive Vice President, Chief Financial Officer and Treasurer have concluded that:

(a) information required to be disclosed by Peoples in this Quarterly Report on Form 10-Q and other reports Peoples files or submits under the Exchange Act would be accumulated and communicated to Peoples’ management, including its President and Chief Executive Officer and its Executive Vice President, Chief Financial Officer and Treasurer, as appropriate to allow timely decisions regarding required disclosure;

(b) information required to be disclosed by Peoples in this Quarterly Report on Form 10-Q and other reports Peoples files or submits under the Exchange Act would be recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms; and

(c) Peoples’ disclosure controls and procedures were effective as of the end of the fiscal quarter covered by this Quarterly Report on Form 10-Q.

Changes in Internal Control Over Financial Reporting

There were no changes in Peoples' internal control over financial reporting (as defined in Rule 13a-15(f) under the Exchange Act) that occurred during Peoples' fiscal quarter ended March 31, 2018, that have materially affected, or are reasonably likely to materially affect, Peoples’ internal control over financial reporting.

PART II

ITEM 1 LEGAL PROCEEDINGS

In the ordinary course of their respective businesses or operations, Peoples or one of its subsidiaries may be named as a plaintiff, a defendant, or a party to a legal proceeding or any of their respective properties may be subject to various pending and threatened legal proceedings and various actual and potential claims.  In view of the inherent difficulty of predicting the outcome of such matters, Peoples cannot state what the eventual outcome of any such matters will be. However, based on management's current knowledge and after consultation with legal counsel, management believes these proceedings will not have a material adverse effect on the consolidated financial position, results of operations or liquidity of Peoples.

ITEM 1A RISK FACTORS

The accounting treatment of the interest rate swaps entered into by Peoples as part of its interest rate management strategy, may change if the hedging relationship is not as effective as currently anticipated. 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, 2018, Peoples had 7 interest rate swaps with a notional value of $60.0 million, two of the seven swaps became effective in January 2018, of the five remaining swaps two will become effective in April 2018, one in July of 2018 and two in October 2018. These dates roughly coincide with the maturity of existing FHLB advances.

Although Peoples expects that the hedging relationship will be highly effective as described above, it has not assumed that there will be no ineffectiveness in the hedging relationship. As of March 31, 2018, the termination value of derivatives in a net asset position, which includes accrued interest but excludes any adjustment for nonperformance risk, related to these agreements was $0.9 million. As of March 31, 2018, Peoples has no minimum collateral posting thresholds with certain of its derivative counterparties and has posted collateral of $6.0 million against its obligations under these agreements. If Peoples had breached any of these provisions at March 31, 2018, it could have been required to settle its obligations under the agreements at the termination value.

There have been no other material changes from those risk factors previously disclosed in “ITEM 1A. RISK FACTORS” of Part I of Peoples’ 2017 Form 10-K.  Those risk factors are not the only risks Peoples faces.  Additional risks and uncertainties not currently known to management or that management currently deems to be immaterial also may materially adversely affect Peoples’ business, financial condition and/or operating results.

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ITEM 2 UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

The following table details repurchases by Peoples and purchases by “affiliated purchasers” as defined in Rule 10b-18(a)(3) under the Securities Exchange Act of 1934, as amended, of Peoples’ common shares during the three months ended March 31, 2018:

Period	(a) Total Number of Common Shares Purchased	(b) Average Price Paid per Common Share		(c) Total Number of Common Shares Purchased as Part of Publicly Announced Plans or Programs(1)	(d) Maximum Number ( or Approximate Dollar Value) of Common Shares that May Yet Be Purchased Under the Plans or Programs(1)
January 1-31, 2018 (2)(3)	27,287	$	35.78	—	$	15,049,184
February 1-28, 2018 (2)	1,640	34.89		—	15,049,184
March 1-31, 2018 (3)	275	34.81		—	15,049,184
Total	29,202	$	35.72	—	$	15,049,184

(1) On November 3, 2015, Peoples announced that on that same date, Peoples' Board of Directors authorized a share repurchase program authorizing Peoples to purchase up to $20.0 million of its outstanding common shares. No common shares were purchased under this share repurchase program during the three months ended March 31, 2018.

(2) Information reported includes 26,747 common shares and 1,640 common shares withheld during January and February, respectively , to pay income taxes associated with restricted common shares which vested.

(3) Information reported includes 540 common shares and 275 common shares purchased in open market transactions during January and March, respectively, by Peoples Bank under the Rabbi Trust Agreement. The Rabbi Trust Agreement establishes a rabbi trust that holds assets to provide funds for the payment of the benefits under the Peoples Bancorp Inc. Third Amended and RestatedDeferred Compensation Plan for Directors of Peoples Bancorp Inc. and Subsidiaries.

ITEM 3 DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4 MINE SAFETY DISCLOSURES

Not applicable.

ITEM 5 OTHER INFORMATION

None

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ITEM 6 EXHIBITS

Exhibit Number	Description	Exhibit Location
3.1(a)	Amended Articles of Incorporation of Peoples Bancorp Inc. (as filed with the Ohio Secretary of State on May 3, 1993)	Incorporated herein by reference to Exhibit 3(a) to the Registration Statement on Form 8-B of Peoples Bancorp Inc. ("Peoples") filed July 20, 1993 (File No. 0-16772)
3.1(b)	Certificate of Amendment to the Amended Articles of Incorporation of Peoples Bancorp Inc. (as filed with the Ohio Secretary of State on April 22, 1994)	Incorporated herein by reference to Exhibit 3.1(b) to Peoples' Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2017 (File No. 0-16772) ("Peoples' September 30, 2017 Form 10-Q")
3.1(c)	Certificate of Amendment to the Amended Articles of Incorporation of Peoples Bancorp Inc. (as filed with the Ohio Secretary of State on April 9, 1996)	Incorporated herein by reference to Exhibit 3.1(c) to Peoples' September 30, 2017 Form 10-Q
3.1(d)	Certificate of Amendment to the Amended Articles of Incorporation of Peoples Bancorp Inc. (as filed with the Ohio Secretary of State on April 23, 2003)	Incorporated herein by reference to Exhibit 3(a) to Peoples’ Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2003 (File No. 0-16772) (“Peoples’ March 31, 2003 Form 10-Q”)
3.1(e)	Certificate of Amendment by Shareholders to the Amended Articles of Incorporation of Peoples Bancorp Inc. (as filed with the Ohio Secretary of State on January 22, 2009)	Incorporated herein by reference to Exhibit 3.1 to Peoples’ Current Report on Form 8-K dated and filed on January 23, 2009 (File No. 0-16772)
3.1(f)	Certificate of Amendment by Directors to Articles filed with the Secretary of State of the State of Ohio on January 28, 2009, evidencing adoption of amendments by the Board of Directors of Peoples Bancorp Inc. to Article FOURTH of Amended Articles of Incorporation to establish express terms of Fixed Rate Cumulative Perpetual Preferred Shares, Series A, each without par value, of Peoples Bancorp Inc.	Incorporated herein by reference to Exhibit 3.1 to Peoples’ Current Report on Form 8-K dated and filed on February 2, 2009 (File No. 0-16772)
3.1(g)	Amended Articles of Incorporation of Peoples Bancorp Inc. (This document represents the Amended Articles of Incorporation of Peoples Bancorp Inc. in compiled form incorporating all amendments. The compiled document has not been filed with the Ohio Secretary of State.)	Incorporated herein by reference to Exhibit 3.1(g) to Peoples’ Annual Report on Form 10-K for the fiscal year ended December 31, 2008 (File No. 0-16772)
3.2(a)	Code of Regulations of Peoples Bancorp Inc.	Incorporated herein by reference to Exhibit 3(b) to Peoples’ Registration Statement on Form 8-B filed July 20, 1993 (File No. 0-16772)
3.2(b)	Certified Resolutions Regarding Adoption of Amendments to Sections 1.03, 1.04, 1.05, 1.06, 1.08, 1.10, 2.03(C), 2.07, 2.08, 2.10 and 6.02 of the Code of Regulations of Peoples Bancorp Inc. by shareholders on April 10, 2003	Incorporated herein by reference to Exhibit 3(c) to Peoples’ March 31, 2003 Form 10-Q
3.2(c)	Certificate regarding adoption of amendments to Sections 3.01, 3.03, 3.04, 3.05, 3.06, 3.07, 3.08 and 3.11 of the Code of Regulations of Peoples Bancorp Inc. by shareholders on April 8, 2004	Incorporated herein by reference to Exhibit 3(a) to Peoples’ Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2004 (File No. 0-16772)
3.2(d)	Certificate regarding adoption of amendments to Sections 2.06, 2.07, 3.01 and 3.04 of Peoples Bancorp Inc.’s Code of Regulations by the shareholders on April 13, 2006	Incorporated herein by reference to Exhibit 3.1 to Peoples’ Current Report on Form 8-K dated and filed on April 14, 2006 (File No. 0-16772)
3.2(e)	Certificate regarding adoption of an amendment to Section 2.01 of Peoples Bancorp Inc.’s Code of Regulations by the shareholders on April 22, 2010	Incorporated herein by reference to Exhibit 3.2(e) to Peoples’ Quarterly Report on Form 10-Q/A (Amendment No. 1) for the quarterly period ended June 30, 2010 (File No. 0-16772) ("Peoples' June 30, 2010 Form 10-Q/A")
3.2(f)	Code of Regulations of Peoples Bancorp Inc. (This document represents the Code of Regulations of Peoples Bancorp Inc. in compiled form incorporating all amendments.)	Incorporated herein by reference to Exhibit 3.2(f) to Peoples’ June 30, 2010 Form 10-Q/A

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Exhibit Number	Description	Exhibit Location
10.1	Summary of Base Salaries for Executive Officers of Peoples Bancorp Inc.	Filed herewith
10.2	Summary of Compensation for Directors of Peoples Bancorp Inc.	Incorporated herein by reference to Exhibit 10.8 to Peoples' Annual Report on Form 10-K for the fiscal year ended December 31, 2017 (File No. 0-16772) ("Peoples' 2017 Form 10-K")
10.3	Peoples Bancorp Inc. Second Amended and Restated 2006 Equity Plan (approved by the shareholders of Peoples Bancorp Inc. on April 25, 2013)	Incorporated herein by reference to Exhibit 10.1 to Peoples' Quarterly Report on 10-Q for the quarterly period ended June 30, 2013 (File No. 0-16772)
10.4	First Amendment to the Peoples Bancorp Inc. Second Amended and Restated 2006 Equity Plan (adopted by the Board of Directors of Peoples Bancorp Inc. on January 25, 2018)	Incorporated herein by reference to Exhibit 10.10 to Peoples' 2017 Form10-K (File No. 0-16772)
10.5	Form of Peoples Bancorp Inc. Second Amended and Restated 2006 Equity Plan Performance-Based Restricted Stock Award Agreement used and to be used to evidence grants of performance-based restricted stock to executive officers of Peoples Bancorp Inc. on and after January 1, 2018	Filed herewith
31.1	Rule 13a-14(a)/15d-14(a) Certifications [President and Chief Executive Officer]	Filed herewith
31.2	Rule 13a-14(a)/15d-14(a) Certifications [Executive Vice President, Chief Financial Officer and Treasurer]	Filed herewith
32	Section 1350 Certifications	Furnished herewith
101.INS	XBRL Instance Document	Submitted electronically herewith #
101.SCH	XBRL Taxonomy Extension Schema Document	Submitted electronically herewith #
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document	Submitted electronically herewith #
101.LAB	XBRL Taxonomy Extension Label Linkbase Document	Submitted electronically herewith #
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document	Submitted electronically herewith #
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document	Submitted electronically herewith #
# Attached as Exhibit 101 to the Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2018 of Peoples Bancorp Inc. are the following documents formatted in XBRL (eXtensible Business Reporting Language): (i) Consolidated Balance Sheets (unaudited) at March 31, 2018 and December 31, 2017; (ii) Consolidated Statements of Income (unaudited) for the three months ended March 31, 2018 and 2017; (iii) Consolidated Statements of Comprehensive Income (unaudited) for the three months ended March 31, 2018 and 2017; (iv) Consolidated Statement of Stockholders' Equity (unaudited) for the three months ended March 31, 2018; (v) Condensed Consolidated Statements of Cash Flows (unaudited) for the three months ended March 31, 2018 and 2017; and (vi) Notes to the Unaudited Consolidated Financial Statements.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

			PEOPLES BANCORP INC.
Date:	April 27, 2018	By: /s/	CHARLES W. SULERZYSKI
			Charles W. Sulerzyski
			President and Chief Executive Officer
Date:	April 27, 2018	By: /s/	JOHN C. ROGERS
			John C. Rogers
			Executive Vice President,
			Chief Financial Officer and Treasurer

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EX-10.1

EXHIBIT 10.1

PEOPLES BANCORP INC. QUARTERLY REPORT ON FORM 10-Q

FOR QUARTERLY PERIOD ENDED MARCH 31, 2018

SUMMARY OF BASE SALARIES FOR EXECUTIVE OFFICERS

OF PEOPLES BANCORP INC.

The base salaries of executive officers of Peoples Bancorp Inc. (“Peoples”) are determined by evaluating the most recent comparative peer data and the role and responsibilities of their positions. Individual salary increases are reviewed annually and are based on Peoples' overall performance and the executive's attainment of specific individual business objectives during the preceding year.

The following table details the base salaries to be paid by Peoples and its subsidiaries to Charles W. Sulerzyski, President and Chief Executive Officer of Peoples, and the four other most highly compensated executive officers of Peoples for the fiscal year ending December 31, 2018:

Name	Position/Title	Base Salary
Charles W. Sulerzyski	President and Chief Executive Officer	$	565,000
John C. Rogers	Executive Vice President, Chief Financial Officer and Treasurer	315,000
Doug Wyatt	Executive Vice President, Chief Commercial Banking Officer	260,000
Carol A. Schneeberger	Executive Vice President, Chief Administrative Officer	260,000
Robyn A. Stevens	Executive Vice President, Chief Credit Officer	230,000

EX-10.5

Exhibit 10.5

Peoples Bancorp Inc.

SECOND Amended and Restated

2006 Equity Plan

Performance-Based Restricted Stock Award Agreement

(for Executives)

This Performance-Based Restricted Stock AwardAgreement (this “Agreement”) is made effective as of _________________ (the “Grant Date”) by and between Peoples Bancorp Inc. (the “Company”)and _______________ (the “Participant”). Capitalized terms not defined in this Agreement shall have the meanings given to them in the Plan (as defined below).

Section 1    Grant of Restricted Performance Stock

The Company hereby grants to the Participant an award of ____________________ (____) shares of restricted Company Stock (the “Restricted Performance Stock”), subject to the terms and conditions described in the Peoples Bancorp Inc. Second Amended and Restated 2006 Equity Plan (the “Plan”) and this Agreement.

Section 2    Restrictions on Vesting and Transfer

(A)    Vesting. Subject to the Participant’s continued employment with the Company or one of its Subsidiaries, and the provisions of the Plan (including Article XI thereof) and this Agreement, the Restricted Performance Stock shall vest in full on the third (3rd) anniversary of the Grant Date (the “Vesting Date”) provided the Company has achieved the “Annual Performance Goals” detailed below for each of the fiscal years which ends during the period beginning on the Grant Date and ending on the Vesting Date (each such fiscal year constitutes a “Performance Period”).

Annual Performance Goals

• The Company has net income greater than zero.

• The Company maintains a “well-capitalized” status as determined in accordance with applicable regulatory standards.

In the event that the Company does not achieve the Annual Performance Goals with respect to one or more Performance Periods, the portion of the Restricted Performance Stock which shall vest on the Vesting Date shall be determined by multiplying the number of shares of Company Stock subject to the Restricted Performance Stock by a fraction, the numerator of which is the number of Performance Periods with respect to which the Company achieved the Annual Performance Goals and the denominator of which is the number of Performance Periods during the period beginning on the Grant Date and ending on the Vesting Date.

(B)    Transfer Restrictions. Until the Restricted Performance Stock vests as described herein, the Restricted Performance Stock may not be sold, transferred, pledged, assigned or otherwise alienated or hypothecated. Except as otherwise provided herein, Restricted Performance Stock that vests as described in Section 2(A), less any shares of Company Stock withheld for the payment of taxes, shall be or become transferable as follows:

(i)Fifty percent (50%) of the net vested Restricted Performance Stock shall be immediately transferable; and

(ii)Fifty percent (50%) of the net Restricted Performance Stock shall become transferable upon the Participant’s Termination.

(C)    Effect of Termination. Notwithstanding anything to the contrary in Sections 2(A) and 2(B) of this Agreement:

(i)Death. If the Participant dies prior to the Vesting Date, a portion of the Restricted Performance Stock, determined as described below, shall become fully vested and transferable on the date of death and the remaining unvested portion of the Restricted Performance Stock shall be forfeited immediately on the date of death:

(I)    If the Participant dies prior to the end of the initial Performance Period, none of the Restricted Performance Stock shall vest.

(II)    If the Participant dies prior to the end of any Performance Period after the initial Performance Period and the Company has achieved the Annual Performance Goals with respect to each Performance Period completed prior to the Participant’s death, the portion of the Restricted Performance Stock which shall vest shall be determined by multiplying the number of shares of Company Stock subject to the Restricted Performance Stock by a fraction, the numerator of which is the number of whole months elapsed during the period beginning on the Grant Date and ending on the date of the Participant’s death, and the denominator of which is the number of whole months in the period beginning on the Grant Date and ending on the Vesting Date.

(III)    If the Participant dies prior to the end of any Performance Period after the initial Performance Period and the Company has not achieved the Annual Performance Goals with respect to one or more of the Performance Periods completed prior to the Participant’s death, the portion of the Restricted Performance Stock which shall vest shall be determined by: multiplying (1) the number of shares of Company Stock subject to the Restricted Performance Stock by (2) a fraction, the numerator of which is a number equal to (a) the number of whole months elapsed during the period beginning on the Grant Date and ending on the date of the Participant’s death, less (b) a number equal to the product of (i) number of Performance Periods completed since the Grant Date and prior to the Participant’s death for which the Performance Goals were not achieved, multiplied by (ii) 12, and the denominator of which is the number of whole months in the period beginning on the Grant Date and ending on the Vesting Date.

(ii)Disability or Retirement. If the Participant Terminates due to Disability or Retirement prior to the Vesting Date, the Restricted Performance Stock shall become vested and transferable at the time and subject to the conditions specified in Section 2(A). For the purpose of this Award Agreement, Retirement means a Termination by a Participant other than due to death or Disability on or after attaining 62 years of age and with at least 5 years of service with the Company or any Subsidiary.

(iii)    Terminations for Cause or Any Reason Other than Death, Disability or Retirement. If the Participant is Terminated for Cause or Terminates for any reason other than due to death, Disability or Retirement prior to the Vesting Date, all of the unvested Restricted Performance Stock shall be forfeited immediately on the Termination date.

(D)    Delivery of Shares. As soon as reasonably practicable after the Restricted Performance Stock becomes transferable, the Company shall deliver to the Participant a stock certificate for, or other appropriate

documentation evidencing, the number of shares of Company Stock with respect to which the restrictions on transferability have lapsed.

Section 3    Rights of the Participant Before Vesting

Before the Restricted Performance Stock vests, (A) the Participant may exercise full voting rights associated with the shares of Company Stock underlying the Restricted Performance Stock, and (B)dividends which would otherwise be received during the Restriction Period shall be accrued and paid to the Participant in the same proportion and at the same time as the underlying Restricted Performance Stock vests, if at all, and any dividends paid in shares of Company Stock shall be subject to the same restrictions as the shares of Restricted Performance Stock granted under this Agreement.

Section 4    Covenants

(A)Non-Solicitation. The Participant acknowledges and understands that the Participant’s contacts with customers or potential customers of the Company and its Subsidiaries are due, at least in part, to the support and assistance provided by the Company during the term of the Participant’s employment, and therefore, that soliciting, diverting or appropriating such persons would unfairly harm the Company and its Subsidiaries. As a result, the Participant agrees that, during the term of the Participant’s employment and for a period of one (1) year thereafter, the Participant shall not, directly or indirectly:

(i) Contact any customer or prospective customer of the Company or any of its Subsidiaries, on the Participant’s behalf or on behalf of any other person or entity, of whom the Participant had knowledge, actual or imputed, or with whom the Participant had contact in whatever form during the Participant’s employment with the Company or any of its Subsidiaries for the purpose of soliciting the business of such person or inducing such person to acquire from any person or entity other than the Company or any of its Subsidiaries any product or service that currently is provided or under development by the Company or any of its Subsidiaries; or

(ii)    Attempt to solicit, or assist anyone in attempting to solicit, any employee of the Company or any of its Subsidiaries to terminate the employee’s employment with the Company or any of its Subsidiaries.

(B)Non-Disclosure of Confidential Information. The Participant acknowledges and understands that during the course of the Participant’s employment with the Company and/or its Subsidiaries, the Participant shall have access to Confidential Information (as defined below) that is maintained as confidential by the Company and its Subsidiaries, is highly valuable and proprietary to the Company and its Subsidiaries, and the disclosure of which to third parties, or the unauthorized access, acquisition, use, or attempted access, acquisition or use, of which would cause the Company and its Subsidiaries serious and unfair competitive disadvantage and harm. As a result, the Participant agrees that, during the Participant’s employment with the Company or any of its Subsidiaries, and at all times thereafter, regardless of the reason for the Termination of such employment:

(i)     The Participant shall not disclose to any third parties any Confidential Information or use such Confidential Information for any purpose other than to carry out the Participant’s employment responsibilities for the Company or any of its Subsidiaries;

(ii)     The Participant shall treat such Confidential Information as confidential, as required by law and this Agreement;

(iii)     The Participant shall only access, acquire, use, or attempt to access, acquire, or use, Confidential Information for use in performing the Participant’s duties for the Company or one of its Subsidiaries, and for no other reason; and

(iv)    Immediately upon Termination of the Participant’s employment for any reason, to return to the Company all Confidential Information in the Participant’s possession or control, as well as any Copies (as defined below) made of such Confidential Information and any other material, including handwritten notes, made or derived from such Confidential Information;

(v)     For purposes of this Agreement:

(I) “Confidential Information” means all trade secrets and proprietary information in whatever form (whether communicated orally or in documentary or other tangible form) belonging to the Company or any of its Subsidiaries that has not been published or disseminated or otherwise become a matter of public knowledge other than as a result of the Participant’s acts or omissions, including without limitation: business plans, financial or accounting information, rates, insurance payment and reimbursement information, research and development information, marketing or sales information, customer lists, lists of potential customers, contact information for any customer or potential customer, processes, computer programs, systems and software (including, without limitation, documentation and related source and object codes), customer renewal and expiration information, associate information, on-site program and support materials, training programs and associated materials, pricing lists, contracts, forms, methods, procedures and analyses and any other information that the Company or one of its Subsidiaries takes measures to prevent, in the ordinary course of business, from being available to persons other than those selected by the Company or one of its Subsidiaries.

(II)“Copies” includes all Confidential Information stored or maintained in electronic format or on electronic or magnetic media of any sort, including, without limitation, computer servers, PDAs, cell phones, I-Pods, smart cards, Blackberries, hard drives, zip drives, floppy disks, CD-ROMs, DVDs, and magnetic tapes.

(C)    Reasonableness of Restraints; Irreparable Harm; Breach No Defense. The Participant acknowledges that:

(i)    The covenants described in this Section 4 are reasonably necessary to protect the goodwill, trade secrets, and other legitimate business interests of the Company and its Subsidiaries and that such restraints shall not cause the Participant any undue hardship.

(ii)    Any breach of the covenants contained in this Section 4 would cause the Company or one of its Subsidiaries immediate and irreparable harm forwhich injunctive relief would be necessary and proper, and the Participant consents to the issuance of a temporary restraining order and a preliminary injunction upon good faith presentment by the Company or one of its Subsidiaries of allegations demonstrating such breach without the necessity of proving damages or posting a bond therefor; provided, however, that nothing contained herein shall be construed to prohibit the Company or any of its Subsidiaries from pursuing all other legal remedies at its disposal including but not limited to monetary damages.

(iii)The covenants of this Section 4 are essential to this Agreement. They shall be construed as independent of any other provision in this Agreement, and the existence of any claim or cause of

action which the Participant may have against the Company or any of its Subsidiaries, whether predicated on this Agreement or otherwise, shall not constitute a defense to the enforcement by the Company or one of its Subsidiaries of these covenants.

(iv)If the scope of any restriction contained in this Section 4 is too broad to permit enforcement of such restriction to its fullest extent, then such restriction shall be enforced to the maximum extent permitted by law, and the Participant hereby consents and agrees that such scope may be judicially modified accordingly in any proceeding brought to enforce such restriction.

Section 5    Restricted Performance Stock Subject to Plan; Plan as Controlling

By entering into this Agreement, the Participant agrees and acknowledges that the Participant has received and read a copy of the Plan. All terms and conditions of the Plan applicable to the Restricted Performance Stock which are not set forth in this Agreement shall be deemed incorporated herein by reference. In the event any term or condition of this Agreement is inconsistent or conflicts with the terms and conditions of the Plan, the Plan shall be deemed controlling. This agreement is also subject to the terms and conditions of the Peoples Bancorp Inc. Executive Incentive Compensation Clawback Policy.

Section 6    Listing, Registration and Qualification

If the Committee determines that (A) the listing, registration or qualification of the shares ofCompany Stock underlying the Restricted Performance Stock upon NASDAQ or any other established stock exchange, market or quotation system or under any state or federal law; (B) the consent or approval of any governmental or regulatory body; or (C) an agreement by the Participant with respect thereto, is necessary or desirable as a condition to the issuance of the shares of Company Stock underlying the Restricted Performance Stock, the shares of Company Stock may not be issued unless and until such listing, registration, qualification, consent, approval, or agreement has been effected or obtained, free of any conditions which are not acceptable to the Committee.

If any shares of Company Stock subject to the Restricted Performance Stock are issued upon the vesting thereof to a person who, at the time of such vesting or thereafter, is an affiliate of the Company for purposes of Rule 144 promulgated under the Securities Act of 1933, as amended (the “Securities Act”), or are issued in reliance upon exemptions under the securities laws of any state, then upon such issuance:

(i)    Unless permitted by the Plan, such shares of Company Stock shall not be transferable by the holder thereof, and neither the Company nor its transfer agent or registrar, if any, shall be required to register or otherwise to give effect to any transfer thereof and may prevent any such transfer, unless the Company shall have received an opinion from its counsel to the effect that any such transfer would not violate the Securities Act or the applicable laws of any state; and

(ii)    The Company may cause any stock certificate which may evidence any of such shares of Company Stock to bear a legend reflecting the applicable restrictions on the transfer thereof.

Section 7    Tax Withholding

The Company shall have the power and the right to deduct or withhold, or require the Participant to remit to the Company, the minimum statutory amount to satisfy federal, state and local taxes required by law or regulation to be withheld with respect to any taxable event arising as a result of the Plan. With respect to withholding required upon any taxable event arising as a result of the Restricted Performance Stock, the Participant may elect, subject to the approval of theCommittee, to satisfy the withholding requirement, in

whole or in part, by having the Company withhold shares of Company Stock having a Fair Market Value on the date the tax is to be determined equal to the minimum statutory total tax that could be imposed on the transaction. All such elections shall be irrevocable, made in writing and signed by the Participant, and shall be subject to any restrictions or limitations that the Committee, in its sole discretion, deems appropriate.

Section 8    Miscellaneous

(A)No Guarantee of Continued Employment. The grant of Restricted Performance Stock under this Agreement shall not: (i) confer upon the Participant any right to continue in the employof the Company or any of its Subsidiaries; (ii) limit in any way the right of the Company or any Subsidiary to Terminate the Participant; or (iii) be evidence of any agreement or understanding, express or implied, that the Participant has a right to continue as an employee for any period of time or at any particular rate of compensation.

(B)Beneficiary Designation. The Participant may name a beneficiary or beneficiaries to receive any shares of Company Stock underlying the Restricted Performance Stock due to the Participant upon the Participant’s death. Unless otherwise provided in the beneficiary designation, each designation made shall revoke all prior designations made by the Participant, must be made on a form prescribed by the Committee and shall be effective only when filed in writing with the Committee. If the Participant has not made an effective beneficiary designation, the deceased Participant’s beneficiary shall be the Participant’s surviving spouse or, if there is no surviving spouse, the deceased Participant’s estate. The identity of a Participant’s designated beneficiary shall be based only on the information included in the latest beneficiary designation form completed by the Participant and shall not be inferred from any other evidence.

(C)Governing Law. This Agreement shall be governed by, and construed in accordance with, the laws of the State of Ohio without regard to the principles of conflict of laws.

(D)Rights and Remedies Cumulative. All rights and remedies of the Company and of the Participant enumerated in this Agreement shall be cumulative and, except as expressly provided otherwise in this Agreement, none shall exclude any other rights or remedies allowed by law or in equity, and each of said rights or remedies may be exercised and enforced concurrently.

(E)Captions. The captions contained in this Agreement are included only for convenience of reference and do not define, limit, explain or modify this Agreement or its interpretation, construction or meaning and are in no way to be construed as a part of this Agreement.

(F)Notices and Payments. All payments required or permitted to be made under the provisions of this Agreement, and all notices and communications required or permitted to be given or delivered under this Agreement to the Company or to the Participant, which notices or communications must be in writing, shall be deemed to have been given if delivered by hand, or mailed by first-class mail (postage prepaid), and addressed as follows:

If to the Company, to:

Peoples Bancorp Inc.

Attn.: Compensation Committee

138 Putnam Street

P. O. Box 738

Marietta, Ohio 45750-0738

If to the Participant, to the last address on file for the Participant with the Company.

The Company or the Participant may, by notice given to the other in accordance with this Agreement, designate a different address for making payments required or permitted to be made, and for the giving of notices or other communications, to the party designating such new address. Any payment, notice or other communication required or permitted to be made or given in accordance with this Agreement shall be deemed to have been made or given upon receipt thereof by the addressee.

(G) Severability.If any provision of this Agreement, or the application of any provision hereof to any person or any circumstance, shall be determined to be invalid or unenforceable, then such determination shall not affect any other provision of this Agreement or the application of said provision to any other person or circumstance, all of which other provisions shall remain in full force and effect, and it is the intention of each party to this Agreement that if any provision of this Agreement is susceptible of two or more constructions, one of which would render the provision enforceable and the other or others of which would render the provision unenforceable, then the provision shall have the meaning which renders it enforceable.

(H) Number and Gender. When used in this Agreement, the number and gender of each pronoun shall be construed to be such number and gender as the context, circumstances or its antecedent may require.

(I) Entire Agreement. This Agreement constitutes the entire agreement between the Company and the Participant in respect of the Restricted Performance Stock granted hereunder, and supersedes all prior and contemporaneous agreements or understandings between the parties hereto in connection with the Restricted Performance Stock granted hereunder. Subject to Section 12.2(b) of the Plan, no change, termination or attempted waiver of any of the provisions of this Agreement shall be binding upon either party hereto unless contained in a writing signed by the party to be charged. Notwithstanding the foregoing or anything in this Agreement to the contrary, this Agreement may be amended without any additional consideration to the Participant to the extent necessary to comply with, or avoid penalties under, Section 409A of the Code even if any such amendment reduces, restricts or eliminates rights granted prior to such amendment.

(J) Signature in Counterparts. This Agreement may be signed in counterparts, each of which shall be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument.

[Remainder of page intentionally left blank; signature page follows]

IN WITNESS WHEREOF, the parties hereto have executed, or caused this Agreement to be executed, to be effective as of the Grant Date.

Company: PEOPLES BANCORP INC., an Ohio corporation	Participant:
Matthew M. Edgell
Senior Vice President and
Secretary to the Compensation Committee
	Street Address
	City, State, and Zip Code
Date:	Date:

EX-31.1

EXHIBIT 31.1

CERTIFICATIONS

I, Charles W. Sulerzyski, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2018, of Peoples Bancorp Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:	April 27, 2018	By:/s/	CHARLES W. SULERZYSKI
			Charles W. Sulerzyski
			President and Chief Executive Officer

EX-31.2

EXHIBIT 31.2

CERTIFICATIONS

I, John C. Rogers, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2018, of Peoples Bancorp Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:	April 27, 2018	By:/s/	JOHN C. ROGERS
			John C. Rogers
			Executive Vice President,
			Chief Financial Officer and Treasurer

EX-32

EXHIBIT 32

CERTIFICATION PURSUANT TO SECTION 1350

OF CHAPTER 63 OF TITLE 18 OF THE UNITED STATES CODE*

In connection with the Quarterly Report of Peoples Bancorp Inc. (“Peoples Bancorp”) on Form 10-Q for the quarterly period ended March 31, 2018, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Charles W. Sulerzyski, President and Chief Executive Officer of Peoples Bancorp, and I, John C. Rogers, Executive Vice President, Chief Financial Officer and Treasurer of Peoples Bancorp, certify, pursuant to Section 1350 of Chapter 63 of Title 18 of the United States Code, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

(2) The information contained in the Report fairly presents, in all material respects, the consolidated financial condition and results of operations of Peoples Bancorp and its subsidiaries.

Date:	April 27, 2018	By: /s/	CHARLES W. SULERZYSKI
			Charles W. Sulerzyski
			President and Chief Executive Officer

Date:	April 27, 2018	By:/s/	JOHN C. ROGERS
			John C. Rogers
			Executive Vice President,
			Chief Financial Officer and Treasurer

* This certification is being furnished as required by Rule 13a-14(b) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and Section 1350 of Chapter 63 of Title 18 of the United States Code, and shall not be deemed “filed” for purposes of Section 18 of the Exchange Act or otherwise subject to the liability of that Section.  This certification shall not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act.

XML

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2018	Apr. 25, 2018
Document and Entity Information [Abstract]
Entity Registrant Name	PEOPLES BANCORP INC.
Entity Central Index Key	0000318300
Document Type	10-Q
Document Period End Date	Mar. 31, 2018
Amendment Flag	false
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	Q1
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		19,525,101

XML

Consolidated Balance Sheets - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Dec. 31, 2017
Statement of Financial Position [Abstract]
Amounts reclassified out of accumulated other comprehensive loss per ASU 2016-01 (a)	$ 5,020
Assets
Cash and due from banks	55,197	$ 58,121
Interest-bearing deposits in other banks	17,432	14,073
Total cash and cash equivalents	72,629	72,194
Available-for-sale investment securities, at fair value (amortized cost of $808,689 at March 31, 2018 and $797,732 at December 31, 2017) (a)	790,910	795,187
Held-to-maturity investment securities, at amortized cost (fair value of $39,440 at March 31, 2018 and $41,213 at December 31, 2017)	39,651	40,928
Other investment securities (a)	46,756	38,371
Total investment securities	877,317	874,486
Loans, net of deferred fees and costs	2,402,328	2,357,137
Allowance for loan losses	(18,798)	(18,793)
Net loans	2,383,530	2,338,344
Loans held for sale	3,581	2,510
Bank owned life insurance	56,247	52,510
Bank owned life insurance	62,644	62,176
Goodwill	133,111	133,111
Other intangible assets	10,709	11,465
Other assets	35,161	34,890
Total assets	3,634,929	3,581,686
Liabilities
Non-interest-bearing	570,804	556,010
Interest-bearing	2,242,377	2,174,320
Total deposits	2,813,181	2,730,330
Short-term borrowings	203,475	209,491
Long-term borrowings	123,481	144,019
Accrued expenses and other liabilities	37,977	39,254
Total liabilities	3,178,114	3,123,094
Stockholders’ equity
Preferred stock, no par value, 50,000 shares authorized, no shares issued at March 31, 2018 and December 31, 2017	0	0
Common stock, no par value, 24,000,000 shares authorized, 18,956,838 shares issued at March 31, 2018 and 18,952,385 shares issued at December 31, 2017, including shares in treasury	344,233	345,412
Retained earnings (b)	143,297	134,362
Accumulated other comprehensive loss, net of deferred income taxes (b)	(16,062)	(5,215)
Treasury stock, at cost, 630,440 shares at March 31, 2018 and 702,449 shares at December 31, 2017	(14,653)	(15,967)
Total stockholders’ equity	456,815	458,592
Total liabilities and stockholders’ equity	$ 3,634,929	$ 3,581,686

XML

Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Dec. 31, 2017
Statement of Financial Position [Abstract]
Other Investments and Securities, at Cost	$ 8,400	$ 7,800
Cumulative Effect on Retained Earnings, Net of Tax	3,100
Amounts reclassified out of accumulated other comprehensive loss per ASU 2016-01 (a)	5,020
Assets
Available-for-sale investment securities at amortized cost	808,689	797,732
Held-to-maturity investment securities at fair value	$ 39,440	$ 41,213
Stockholders’ equity
Preferred stock - shares authorized	50,000	50,000
Preferred stock - shares issued	0	0
Common stock - shares authorized	24,000,000	24,000,000
Common stock - shares issued	18,956,838	18,952,385
Treasury stock - shares	634,400	702,449

XML

Consolidated Statements of Operations - USD ($)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Income Statement [Abstract]
Unrealized Gain (Loss) on Marketable Securities, Cost Method Investments, and Other Investments	$ 460,000
Other Investments and Securities, at Cost	8,400,000
Interest income:
Interest and fees on loans	26,881,000	$ 24,299,000
Interest and dividends on taxable investment securities	5,650,000	4,709,000
Interest on tax-exempt investment securities	643,000	794,000
Other interest income	52,000	15,000
Total interest income	33,226,000	29,817,000
Interest expense:
Interest on deposits	2,213,000	1,487,000
Interest on short-term borrowings	968,000	251,000
Interest on long-term borrowings	686,000	1,134,000
Total interest expense	3,867,000	2,872,000
Net interest income	29,359,000	26,945,000
Provision for loan losses	1,983,000	624,000
Net interest income after provision for loan losses	27,376,000	26,321,000
Non-interest income:
Insurance income	4,655,000	4,102,000
Trust and investment income	3,068,000	2,682,000
Electronic banking income	2,785,000	2,561,000
Deposit account service charges	2,120,000	2,429,000
Bank owned life insurance income	468,000	493,000
Mortgage banking income	351,000	387,000
Commercial loan swap fees	116,000	268,000
Net gain (loss) on asset disposals and other transactions	74,000	(3,000)
Net gain on investment securities	1,000	340,000
Other non-interest income (a)	1,331,000	412,000
Total non-interest income	14,969,000	13,671,000
Non-interest expense:
Salaries and employee benefit costs	15,990,000	15,496,000
Net occupancy and equipment expense	2,866,000	2,713,000
Electronic banking income	1,528,000	1,514,000
Professional fees	1,718,000	1,610,000
Data processing and software expense	1,322,000	1,142,000
Amortization of other intangible assets	754,000	863,000
Franchise tax expense	644,000	583,000
FDIC insurance expense	366,000	433,000
Communication expense	344,000	410,000
Marketing expense	325,000	280,000
Foreclosed real estate and other loan expenses	228,000	196,000
Other non-interest expense	2,136,000	2,091,000
Total non-interest expense	28,221,000	27,331,000
Income before income taxes	14,124,000	12,661,000
Income tax expense	2,383,000	3,852,000
Net income	$ 11,741,000	$ 8,809,000
Earnings per common share - basic	$ 0.64	$ 0.49
Earnings per common share - diluted	$ 0.64	$ 0.48
Weighted-average number of common shares outstanding - basic	18,126,089	18,029,991
Weighted-average number of common shares outstanding - diluted	18,256,035	18,192,957
Cash dividends declared	$ 4,771,000	$ 3,634,000
Cash dividends declared per common share	$ 0.26	$ 0.2000

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Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Net income	$ 11,741	$ 8,809
Available-for-sale investment securities:
Gross unrealized holding (loss) gain arising in the period	(10,113)	3,412
Related tax benefit (expense)	2,124	(1,194)
Less: reclassification adjustment for net gain included in net income	1	340
Related tax expense	0	(119)
Amounts reclassified out of accumulated other comprehensive loss per ASU 2016-01 (a)	(5,020)
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Investment Transferred from Available-for-sale to Equity Method, Tax	1,054
Net effect on other comprehensive (loss) income	(11,956)	1,997
Defined benefit plans:
Net gain arising during the period	0	1
Amortization of unrecognized loss and service cost on benefit plans	26	23
Related tax expense	(6)	(8)
Net effect on other comprehensive income	20	16
Cash flow hedges:
Net gain (loss) arising during the period	1,378	(103)
Related tax (expense) benefit	(289)	36
Net effect on other comprehensive income (loss)	1,089	(67)
Total other comprehensive (loss) income, net of tax expense	(10,847)	1,946
Total comprehensive income	$ 894	$ 10,755

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Consolidated Statement of Shareholders' Equity - 3 months ended Mar. 31, 2018 - USD ($) $ in Thousands	Total	Common Shares	Retained Earnings	Accumulated Other Comprehensive Loss	Treasury Stock	Restricted Shares	Restricted Shares Common Shares	Restricted Shares Treasury Stock
Balance, December 31, 2017 at Dec. 31, 2017	$ 458,592	$ 345,412	$ 134,362	$ (5,215)	$ (15,967)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Amounts reclassified out of retained earnings per ASU 2014-09 | Accounting Standards Update 2014-09 [Member]			(3,055)
Net income	11,741		11,741
Amounts reclassified out of accumulated other comprehensive loss per ASU 2016-01 (a)	5,020
Other comprehensive income, net of tax	(5,827)			(10,847)
Cash dividends declared	(4,771)		(4,771)
Stock Issued During Period, Value, Stock Options Exercised	0	(3)			3
Reissuance of treasury stock for deferred compensation plan for Boards of Directors						$ 0	$ (2,281)	$ 2,281
Reissuance of treasury stock for deferred compensation plan for Boards of Directors	2				2
Repurchase of treasury stock in connection with employee incentive plan and under compensation plan for Boards of Directors	(1,056)				(1,056)
Common shares issued under dividend reinvestment plan	161	161
Common shares issued under compensation plan for Boards of Directors	0	84			84
Stock-based compensation expense	1,028	1,028
Balance, March 31, 2018 at Mar. 31, 2018	$ 456,815	$ 344,233	$ 143,297	$ (16,062)	$ (14,653)

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Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Statement of Cash Flows [Abstract]
Net cash provided by operating activities	$ 11,669	$ 13,508
Available-for-sale investment securities:
Purchases	(44,359)	(41,088)
Proceeds from sales	0	555
Proceeds from principal payments, calls and prepayments	29,582	32,064
Held-to-maturity investment securities:
Purchases	0	1,310
Proceeds from principal payments	1,184	336
Payments to Acquire Other Investments	(198)
Proceeds from Sale of Other Investments	110
Net increase in loans	(46,404)	(23,528)
Net expenditures for bank premises and equipment	(1,476)	(490)
Proceeds from sales of (increase in) other real estate owned	104	(16)
Business acquisitions, net of cash received	0	(450)
Return of limited partnership and tax credit funds	(1)	(634)
Net cash used in investing activities	(61,456)	(33,293)
Financing activities:
Net increase in non-interest-bearing deposits	14,794	50,626
Net increase in interest-bearing deposits	68,050	141,809
Net decrease in short-term borrowings	(26,016)	(199,855)
Proceeds from long-term borrowings	0	30,000
Payments on long-term borrowings	(587)	(701)
Cash dividends paid	(4,741)	(3,518)
Repurchase of treasury stock in connection with employee incentive plan and compensation plan for Boards of Directors to be held as treasury stock	1,056	288
Proceeds from issuance of common shares	2	3
Net cash provided by financing activities	50,222	17,954
Net increase (decrease) in cash and cash equivalents	435	(1,831)
Cash and cash equivalents at beginning of period	72,194	66,146
Cash and cash equivalents at end of period	72,629	64,315
Payment for Contingent Consideration Liability, Financing Activities	$ (224)	$ (122)

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Summary of Significant Accounting Policies

3 Months Ended

Mar. 31, 2018

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Summary of Significant Accounting Policies

Basis of Presentation: The accompanying Unaudited Consolidated Financial Statements of Peoples Bancorp Inc. and its subsidiaries ("Peoples" refers to Peoples Bancorp Inc. and its consolidated subsidiaries collectively, except where the context indicates the reference relates solely to Peoples Bancorp Inc.) have been prepared in accordance with accounting principles generally accepted in the United States (“US GAAP”) for interim financial information and the instructions for Form 10-Q and Article 10 of Regulation S-X.  Accordingly, these financial statements do not contain all of the information and footnotes required by US GAAP for annual financial statements and should be read in conjunction with Peoples’ Annual Report on Form 10-K for the fiscal year ended December 31, 2017 (“Peoples' 2017 Form 10-K”).

The accounting and reporting policies followed in the presentation of the accompanying Unaudited Consolidated Financial Statements are consistent with those described in Note 1 of the Notes to the Consolidated Financial Statements included in Peoples’ 2017 Form 10-K, as updated by the information contained in this Form 10-Q.  Management has evaluated all significant events and transactions that occurred after March 31, 2018 for potential recognition or disclosure in these consolidated financial statements.  In the opinion of management, these consolidated financial statements reflect all adjustments necessary to present fairly such information for the periods and at the dates indicated.  Such adjustments are normal and recurring in nature.  Intercompany accounts and transactions have been eliminated.  The Consolidated Balance Sheet at December 31, 2017, contained herein, has been derived from the audited Consolidated Balance Sheet included in Peoples’ 2017 Form 10-K. 

The preparation of the consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes.  Results of operations for interim periods are not necessarily indicative of the results to be expected for the full year, due in part to seasonal variations and unusual or infrequently occurring items.

New Accounting Pronouncements: From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board ("FASB") or other standard setting bodies that are adopted by Peoples as of the required effective dates.

Accounting Standards Update ("ASU") 2018-05 - Income Taxes (Topic 740): Amendment to clarify situations where a registrant does not have the necessary information available, prepared, or analyzed in reasonable detail to complete the accounting under ASC 740 for certain income tax effects of the Tax Cuts and Jobs Act for the reporting period. As of December 31, 2017, Peoples partially completed the accounting for the tax effects of enactment of the Tax Cuts and Jobs Act; however, in certain cases, Peoples made reasonable estimates of the effects of a reduced federal corporate income tax rate on its existing deferred tax balances. In other cases, Peoples has not been able to make a reasonable estimate and continued to account for those items based on its existing accounting under ASC 740, and the provisions of the tax laws that were in effect immediately prior to enactment of the Tax Cuts and Jobs Act. In all cases, Peoples will continue to make and refine its calculations during the one-year re-measurement period as additional analysis is completed. In addition, these estimates may be affected as Peoples gains a more thorough understanding of the new tax reform legislation.

ASU 2018-04 - Investments - Debt Securities (Topic 320) and Regulated Operations (Topic 980): The amendment in this ASU adds, amends and supersedes various paragraphs that contain SEC guidance in ASC 320, Investments-Debt Securities and ASC 980, Regulated Operations. The amendments in this ASU are effective when a registrant adopts ASU 2016-01, which for Peoples, was January 1, 2018. This amendment is not expected to have an impact on Peoples' consolidated financial statements.

ASU 2018-02 - Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. Peoples early adopted ASU 2018-02, reclassifying income tax effects of the Tax Cuts and Jobs Act of $0.9 million from accumulated other comprehensive loss to retained earnings as of December 31, 2017.

ASU 2017-12 - Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities. The amendments in this ASU better align an entity’s risk management activities and financial reporting for hedging relationships through changes to both the designation and measurement guidance for qualifying hedging relationships, and the presentation of hedge results. To meet that objective, the amendments expand and refine hedge accounting for both nonfinancial and financial risk components, and align the recognition and presentation of the effects of the hedging instrument and the hedged item in the financial statements. The amendments will be effective for interim and annual reporting periods beginning after December 15, 2018 (effective January 1, 2019 for Peoples). Peoples will adopt this new accounting guidance as required, and it is not expected to have a material impact on Peoples' consolidated financial statements.

ASU 2016-13 - Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. This accounting guidance replaces the current “incurred loss” model for recognizing credit losses with an “expected loss” model, referred to as the Current Expected Credit Loss (“CECL”) model. Under the CECL model, Peoples will be required to present certain financial assets carried at amortized cost, such as loans held-for-investment and held-to-maturity debt securities, at the net amount expected to be collected.

The measurement of expected credit losses is to be based on information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. This measurement will take place at the time the financial asset is first added to the balance sheet and periodically thereafter. This differs significantly from the “incurred loss” model required under current US GAAP, which delays recognition until it is probable a loss has been incurred. Accordingly, Peoples expects that the adoption of the CECL model will materially affect how the allowance for loan losses is determined and could require significant increases to the allowance for loan losses. Moreover, the CECL model may create more volatility in the level of Peoples' allowance for loan losses. If required to materially increase the level of allowance for loan losses for any reason, such increase could adversely affect Peoples' business, financial condition and results of operations.

The new CECL standard will become effective for interim and annual reporting periods beginning after December 15, 2019 (effective January 1, 2020 for Peoples). Peoples is currently evaluating the impact that the CECL model will have on Peoples' financial statements and expects to recognize a one-time cumulative-effect adjustment to the allowance for loan loss provision as of the beginning of the first reporting period in which the new standard is effective, consistent with regulatory expectations set forth in interagency guidance issued at the end of 2016. Peoples has not yet determined the magnitude of any such one-time cumulative adjustment or of the overall impact of the new standard on Peoples' financial condition or results of operations.

ASU 2016-02 - Leases (Topic 842): This ASU was issued to improve the financial reporting of leasing activities and provide a faithful representation of leasing transactions and improve understanding and comparability of a lessee's financial statements. Under the new accounting guidance, a lessee will be required to recognize assets and liabilities for leases with lease terms of more than 12 months. This ASU will require both finance and operating leases to be recognized on the balance sheet. This ASU will affect all companies and organizations that lease real estate. The FASB issued an update in January 2018 (ASU 2018-01) providing an optional transition practical expedient to not evaluate under Topic 842 land easements that exist or expired before the entity's adoption of Topic 842. This ASU will become effective for interim and annual reporting periods beginning after December 15, 2018 (effective January 1, 2019 for Peoples). Peoples will adopt this new accounting guidance as required, and it is not expected to have a material impact on Peoples' consolidated financial statements.

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Fair Value of Financial Instruments

3 Months Ended

Mar. 31, 2018

Fair Value Disclosures [Abstract]

Fair Value of Financial Instruments

Fair Value of Assets and Liabilities

Fair value represents the amount expected to be received to sell an asset or paid to transfer a liability in its principal or most advantageous market in an orderly transaction between market participants at the measurement date. In accordance with fair value accounting guidance, Peoples measures, records, and reports various types of assets and liabilities at fair value on either a recurring or non-recurring basis in the Consolidated Financial Statements. Those assets and liabilities are presented below in the sections entitled “Assets and Liabilities Required to be Measured and Reported at Fair Value on a Recurring Basis” and “Assets and Liabilities Required to be Measured and Reported at Fair Value on a Non-Recurring Basis.”

Depending on the nature of the asset or liability, Peoples uses various valuation methodologies and assumptions to estimate fair value. The measurement of fair value under US GAAP uses a hierarchy intended to maximize the use of observable inputs and minimize the use of unobservable inputs.  This hierarchy uses three levels of inputs to measure the fair value of assets and liabilities as follows:

Level 1: Quoted prices in active exchange markets for identical assets or liabilities; also includes certain U.S. Treasury and other U.S. government and agency securities actively traded in over-the-counter markets.

Level 2: Observable inputs other than Level 1 including quoted prices for similar assets or liabilities, quoted prices in less active markets, or other observable inputs that can be corroborated by observable market data; also includes derivative contracts whose value is determined using a pricing model with observable market inputs or can be derived principally from, or corroborated by, observable market data.  This category generally includes certain U.S. government and agency securities, corporate debt securities, derivative instruments, and residential mortgage loans held for sale.

Level 3: Unobservable inputs supported by little or no market activity for financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation; also includes observable inputs for single dealer nonbinding quotes not corroborated by observable market data. This category generally includes certain private equity investments, retained interests from securitizations, and certain collateralized debt obligations.

Assets and liabilities are assigned to a level within the fair value hierarchy based on the lowest level of significant input used to measure fair value. Assets and liabilities may change levels within the fair value hierarchy due to market conditions or other circumstances. Those transfers are recognized on the date of the event that prompted the transfer. There were no transfers of assets or liabilities required to be measured at fair value on a recurring basis between levels of the fair value hierarchy during the periods presented.

Assets and Liabilities Required to be Measured and Reported at Fair Value on a Recurring Basis

The following table provides the fair value for assets and liabilities required to be measured and reported at fair value on a recurring basis in the Consolidated Balance Sheets by level in the fair value hierarchy.

	Recurring Fair Value Measurements at Reporting Date
	March 31, 2018						December 31, 2017
(Dollars in thousands)	Level 1		Level 2		Level 3		Level 1		Level 2		Level 3
Assets:
Securities available-for-sale:
Obligations of:
States and political subdivisions	$	—	$	97,205	$	—	$	—	$	101,569	$	—
Residential mortgage-backed securities	—		681,746		—		—		673,664		—
Commercial mortgage-backed securities	—		6,864		—		—		6,976		—
Bank-issued trust preferred securities	—		5,095		—		—		5,129		—
Equity securities (a)	—		—		—		7,694		155
Total available-for-sale securities	—		790,910		—		7,694		787,493		—
Securities held-to-maturity:
Obligations of:
States and political subdivisions	—		4,300		—		—		4,417		—
Residential mortgage-backed securities	—		30,978		—		—		32,227		—
Commercial mortgage-backed securities	—		4,162		—		—		4,569		—
Total held-to-maturity securities	—		39,440		—		—		41,213		—
Equity securities (a)	7,311		160		—		—		—		—
Derivative assets (b)	—		6,633		—		—		4,594		—
Liabilities:
Derivative liabilities (c)	$	—	$	3,870	$	—	$	—	$	3,241	$	—

(a) As of January 1, 2018, Peoples adopted ASU 2016-01, resulting in the reclassification of equity securities from available-for-sale investment

securities to other investment securities. As of December 31, 2017, equity securities had a net unrealized gain of $6.5 million.

(b) Included in other assets on the Consolidated Balance Sheets. For additional information, see Note 9 of the Notes to the Unaudited Consolidated Financial Statements.

(c) Included in other liabilities on the Consolidated Balance Sheets. For additional information, see Note 9 of the Notes to the Unaudited Consolidated Financial Statements.

Securities Available-for-Sale and Held-to-Maturity:The fair values used by Peoples are obtained from an independent pricing service and represent either quoted market prices for the identical securities (Level 1) or fair values determined by pricing models using a market approach that considers observable market data, such as interest rate volatility, LIBOR yield curves, credit spreads and prices from market makers and live trading systems (Level 2). Management reviews the valuation methodology and quality controls utilized by the pricing services in management's overall assessment of the reasonableness of the fair values provided, and challenges prices when management believes a material discrepancy in pricing exists.

Equity Securities:The fair value of Peoples' equity securities are obtained from quoted prices in active exchange markets for identical assets or liabilities (Level 1) or quoted prices in less active markets (Level 2).

Derivative Assets/Liabilities: Derivative assets/liabilities are recognized in the Consolidated Balance Sheets at their fair value within other assets/liabilities. The fair value for derivative instruments is determined based on market prices, broker-dealer quotations on similar products, or other related input parameters (Level 2).

Assets and Liabilities Required to be Measured and Reported at Fair Value on a Non-Recurring Basis

The following table provides the fair value for each class of assets and liabilities required to be measured and reported at fair value on a non-recurring basis in the Consolidated Balance Sheets by level in the fair value hierarchy.

	Non-Recurring Fair Value Measurements at Reporting Date
	March 31, 2018						December 31, 2017
(Dollars in thousands)	Level 1		Level 2		Level 3		Level 1		Level 2		Level 3
Impaired loans	$	—	$	—	$	20,386	$	—	$	—	$	20,602
Loans held for sale	—		—		3,581		—		—		2,510
Other real estate owned (OREO)	—		—		99		—		—		208

Impaired Loans: Impaired loans are measured and reported at fair value when the amounts to be received are less than the carrying value of the loans. One of the allowable methods for determining the amount of impairment is estimating fair value using the fair value of the collateral for collateral-dependent loans. Management’s determination of the fair value for these loans uses a market approach representing the estimated net proceeds to be received from the sale of the collateral based on observable market prices or the market value provided by independent, licensed or certified appraisers (Level 3), less estimated selling costs. At March 31, 2018, impaired loans had an aggregate outstanding principal balance of $25.2 million.  For the three months ended March 31, 2018, Peoples recognized $20,000 of losses on impaired loans, through the allowance for loan losses.

Loans Held for Sale:Loans originated and intended to be sold in the secondary market, generally one-to-four family residential loans, are carried at the lower of cost or estimated fair value determined on an aggregate basis (Level 3).

Other Real Estate Owned: Other real estate owned ("OREO"), included in other assets on the Consolidated Balance Sheets, is comprised primarily of commercial and residential real estate properties acquired by Peoples in satisfaction of a loan. OREO obtained in satisfaction of a loan is recorded at the lower of cost or estimated fair value, less estimated costs to sell the property (Level 3).

Financial Instruments Not Required to be Measured or Reported at Fair Value

The following table provides the carrying amount for each class of assets and liabilities and the fair value for certain financial instruments that are not required to be measured or reported at fair value in the Consolidated Balance Sheets.

	Fair Value Measurements of Other Financial Instruments
(Dollars in thousands)	Fair Value Hierarchy Level	March 31, 2018				December 31, 2017
		Carrying Amount		Fair Value		Carrying Amount		Fair Value
Assets:
Cash and cash equivalents	1	$	72,629	$	72,629	$	72,194	$	72,194
Other investment securities:
FHLB stock	2	28,132		28,132		28,132		28,132
FRB stock	2	10,179		10,179		10,179		10,179
Non-qualified deferred comp (a)	2	914		914		—		—
FHLMC stock	2	60		60		60		60
Total other investment securities		39,285		39,285		38,371		38,371
Loans	3	2,383,530		2,297,373		2,338,344		2,274,194
Bank owned life insurance (BOLI)	3	62,644		62,644		62,176		62,176
Bank premises and equipment, net	3	56,247		56,247		52,510		52,510
Servicing rights (b)	3	2,303		2,303		2,305		2,305
Liabilities:
Deposits	2	$	2,813,181	$	2,809,738	$	2,730,330	$	2,730,071
Short-term borrowings	2	203,475		203,494		209,491		209,628
Long-term borrowings	2	123,481		119,817		144,019		142,108

(a) As of January 1, 2018, Peoples adopted ASU 2016-01, resulting in the reclassification of equity securities (including those held in participant accounts in the non-qualified deferred compensation plan) from available-for-sale investment securities to other investment securities.

(b) Included in other intangible assets on the Consolidated Balance Sheets. Servicing rights are carried at the lower of cost or

market.

 For certain financial assets and liabilities, carrying value approximates fair value due to the nature of the financial instrument.  These instruments include cash and cash equivalents, demand and other non-maturity deposits, and overnight borrowings.  Peoples used the following methods and assumptions in estimating the fair value of the following financial instruments:

Cash and Cash Equivalents: Cash and cash equivalents include cash on hand, balances due from other banks, interest-bearing deposits in other banks, federal funds sold and other short-term investments with original maturities of ninety days or less (Level 1).

Other Investment Securities: Certain restricted equity securities that do not have readily determinable fair values and for which Peoples does not exercise significant influence, are carried at cost. These cost method securities are reported as other investment securities on the Consolidated Balance Sheets and consist primarily of shares of the Federal Home Loan Bank of Cincinnati (the “FHLB”) and the Federal Reserve Bank of Cleveland (the "FRB") (Level 2).

Loans: The fair value of portfolio loans assumes sale of the notes to a third-party financial investor.  Accordingly, this value is not necessarily the value to Peoples if the notes were held to maturity.  Peoples considered interest rate, credit and market factors in estimating the fair value of loans (Level 3).  In the current whole loan market, financial investors are generally requiring a higher rate of return than the return inherent in loans if held to maturity given the lack of market liquidity.  This divergence accounts for the majority of the difference in carrying amount over fair value. 

Bank Owned Life Insurance: Peoples’s bank owned life insurance policies are recorded at their cash surrender value (Level 3). Peoples recognizes tax-exempt income from the periodic increases in the cash surrender value of these policies and from death benefits.

Bank Premises and Equipment: Bank premises and equipment are stated at cost less accumulated depreciation. Depreciation is computed on the straight-line method over the estimated useful lives of the related assets owned. Major improvements to leased facilities are capitalized and included in bank premises at cost less accumulated depreciation, which is calculated on the straight-line method over the lesser of the remaining term of the leased facility or the estimated economic life of the improvement (Level 3).

Servicing Rights ("SRs"): SRs are recorded at fair value at the time of the sale of the loans to the third-party investor. Peoples follows the amortization method for the subsequent measurement of each class of separately recognized servicing assets and liabilities. Under the amortization method, Peoples amortizes the value of servicing assets or liabilities in proportion to, and over the period of, estimated net servicing income or net servicing loss, and assesses servicing assets or liabilities for impairment or increased obligation based on the fair value at each reporting date. The fair value of the SRs is determined by using a discounted cash flow model, which estimates the present value of the future net cash flows of the servicing portfolio based on various factors, such as servicing costs, expected prepayment speeds and discount rates (Level 3).

Deposits: The fair value of fixed maturity certificates of deposit is estimated using a discounted cash flow calculation based on current rates offered for deposits of similar remaining maturities (Level 2).

Short-term Borrowings: The fair value of short-term borrowings is estimated using discounted cash flow analysis based on rates currently available to Peoples for borrowings with similar terms (Level 2). 

Long-term Borrowings: The fair value of long-term borrowings is estimated using a discounted cash flow analysis based on rates currently available to Peoples for borrowings with similar terms (Level 2). 

Certain financial assets and financial liabilities that are not required to be measured or reported at fair value can be subject to fair value adjustments in certain circumstances (for example, when there is evidence of impairment).  These financial assets and liabilities include the following: customer relationships, deposit base, banking center networks, and other information required to compute Peoples’ aggregate fair value that are not included in the above information.  Accordingly, the above fair values are not intended to represent the aggregate fair value of Peoples.

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Investment Securities

3 Months Ended

Mar. 31, 2018

Investments, Debt and Equity Securities [Abstract]

Investment Securities

Investment Securities

Available-for-sale

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

(Dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
March 31, 2018
Obligations of:
States and political subdivisions	$	96,730	$	1,052	$	(577	)	$	97,205
Residential mortgage-backed securities	699,788		2,195		(20,237		)	681,746
Commercial mortgage-backed securities	6,974		—		(110		)	6,864
Bank-issued trust preferred securities	5,197		116		(218		)	5,095
Total available-for-sale securities	$	808,689	$	3,363	$	(21,142	)	$	790,910
December 31, 2017
Obligations of:
States and political subdivisions	100,039		1,786		(256		)	101,569
Residential mortgage-backed securities	684,100		2,582		(13,018		)	673,664
Commercial mortgage-backed securities	7,004		11		(39		)	6,976
Bank-issued trust preferred securities	5,195		141		(207		)	5,129
Equity securities (a)	1,394		6,520		(65		)	7,849
Total available-for-sale securities	$	797,732	$	11,040	$	(13,585	)	$	795,187

(a) As of January 1, 2018, Peoples adopted ASU 2016-01, resulting in the reclassification of equity securities from available-for-sale investment

securities to other investment securities.

Peoples' investment in equity securities was comprised largely of common stocks issued by various unrelated bank holding companies at both March 31, 2018 and December 31, 2017.  At December 31, 2017, there were no equity securities of a single issuer that exceeded 10% of stockholders' equity.

The gross gains and gross losses realized by Peoples from sales of available-for-sale securities for the periods ended March 31 were as follows:

	Three Months Ended
	March 31,
(Dollars in thousands)	2018		2017
Gross gains realized	$	2	$	340
Gross losses realized	1		—
Net gain (loss) realized	$	1	$	340

The cost of investment securities sold, and any resulting gain or loss, was based on the specific identification method and recognized as of the trade date.

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
March 31, 2018
Obligations of:
States and political subdivisions	$	26,370	$	306	37	$	5,095	$	271	2	$	31,465	$	577
Residential mortgage-backed securities	321,636		7,396		95	279,802		12,841		86	601,438		20,237
Commercial mortgage-backed securities	5,609		93		2	1,256		17		1	6,865		110
Bank-issued trust preferred securities	—		—		—	2,782		218		3	2,782		218
Total	$	353,615	$	7,795	134	$	288,935	$	13,347	92	$	642,550	$	21,142
December 31, 2017
Obligations of:
States and political subdivisions	$	16,985	$	89	18	$	5,308	$	167	1	$	22,293	$	256
Residential mortgage-backed securities	274,998		3,462		77	291,812		9,556		88	566,810		13,018
Commercial mortgage-backed securities	2,487		23		1	1,274		16		1	3,761		39
Bank-issued trust preferred securities	—		—		—	2,792		207		3	2,792		207
Equity securities (a)	276		1		1	112		64		1	388		65
Total	$	294,746	$	3,575	97	$	301,298	$	10,010	94	$	596,044	$	13,585

(a) As of January 1, 2018, Peoples adopted ASU 2016-01, resulting in the reclassification of equity securities from available-for-sale investment securities to other investment securities.

Management systematically evaluates available-for-sale investment securities for other-than-temporary declines in fair value on a quarterly basis.  At March 31, 2018, management concluded no individual securities were other-than-temporarily impaired since Peoples did not have the intent to sell, nor was it more likely than not that Peoples would be required to sell, any of the securities with an unrealized loss prior to recovery. Further, the unrealized losses at both March 31, 2018 and December 31, 2017 were largely attributable to changes in market interest rates and spreads since the securities were purchased.

At March 31, 2018, approximately 99% of the mortgage-backed securities with a market value that had been at an unrealized loss position for twelve months or more were issued by U.S. government sponsored agencies. The remaining 1%, or four positions, consisted of privately issued mortgage-backed securities with all of the underlying mortgages originated prior to 2004. Two of the four positions had a fair value of less than 90% of their book value, with an aggregate book and fair value of $0.5 million and $0.3 million, respectively. Management analyzed the underlying credit quality of these securities and concluded the unrealized losses were primarily attributable to the floating rate nature of these investments and the low number of loans remaining in these securities.

Furthermore, the unrealized losses with respect to the three bank-issued trust preferred securities that had been in an unrealized loss position for twelve months or more at March 31, 2018 were primarily attributable to the floating-rate nature of those investments, the current interest rate environment and spreads within that sector.

The table below presents the amortized cost, fair value and total weighted-average yield of available-for-sale securities by contractual maturity at March 31, 2018.  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.  

(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	$	1,294		$	10,503		$	30,295		$	54,638		$	96,730
Residential mortgage-backed securities	439			14,398			40,311			644,640			699,788
Commercial mortgage-backed securities	—			5,701			—			1,273			6,974
Bank-issued trust preferred securities	—			—			2,197			3,000			5,197
Total available-for-sale securities	$	1,733		$	30,602		$	72,803		$	703,551		$	808,689
Fair value
Obligations of:
States and political subdivisions	$	1,301		$	10,492		$	30,332		$	55,080		$	97,205
Residential mortgage-backed securities	433			14,140			39,654			627,519			681,746
Commercial mortgage-backed securities	—			5,608			—			1,256			6,864
Bank-issued trust preferred securities	—			—			2,313			2,782			5,095
Total available-for-sale securities	$	1,734		$	30,240		$	72,299		$	686,637		$	790,910
Total weighted-average yield	2.77		%	2.52		%	3.15		%	2.86		%	2.88		%

Held-to-Maturity

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

(Dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
March 31, 2018
Obligations of:
States and political subdivisions	$	3,807	$	493	$	—		$	4,300
Residential mortgage-backed securities	31,590		192		(804		)	30,978
Commercial mortgage-backed securities	4,254		—		(92		)	4,162
Total held-to-maturity securities	$	39,651	$	685	$	(896	)	$	39,440
December 31, 2017
Obligations of:
States and political subdivisions	$	3,810	$	607	$	—		$	4,417
Residential mortgage-backed securities	32,487		269		(529		)	32,227
Commercial mortgage-backed securities	4,631		—		(62		)	4,569
Total held-to-maturity securities	$	40,928	$	876	$	(591	)	$	41,213

There were no gross gains or gross losses realized by Peoples from sales of held-to-maturity securities for the three months ended March 31, 2018 and 2017.

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
March 31, 2018
Residential mortgage-backed securities	$	5,774	$	48	4	$	11,729	$	756	3	$	17,503	$	804
Commercial mortgage-backed securities	—		—		—	4,162		92		1	4,162		92
Total	$	5,774	$	48	4	$	15,891	$	848	4	$	21,665	$	896
December 31, 2017
Residential mortgage-backed securities	$	1,476	$	4	2	$	12,098	$	525	3	$	13,574	$	529
Commercial mortgage-backed securities	—		—		—	4,569		62		1	4,569		62
Total	$	1,476	$	4	2	$	16,667	$	587	4	$	18,143	$	591

The table below presents the amortized cost, fair value and total weighted-average yield of held-to-maturity securities by contractual maturity at March 31, 2018.  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. 

(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	$	—		$	312		$	2,981		$	514		$	3,807
Residential mortgage-backed securities	—			439			6,336			24,815			31,590
Commercial mortgage-backed securities	—			—			—			4,254			4,254
Total held-to-maturity securities	$	—		$	751		$	9,317		$	29,583		$	39,651
Fair value
Obligations of:
States and political subdivisions	$	—		$	312		$	3,459		$	529		$	4,300
Residential mortgage-backed securities	—			430			6,315			24,233			30,978
Commercial mortgage-backed securities	—			—			—			4,162			4,162
Total held-to-maturity securities	$	—		$	742		$	9,774		$	28,924		$	39,440
Total weighted-average yield	—		%	3.16		%	2.79		%	3.53		%	3.35		%

Other Investment Securities

Peoples' other investment securities on the Unaudited Consolidated Balance Sheet consist largely of shares of the Federal Home Loan Bank of Cincinnati (the “FHLB”) and the Federal Reserve Bank of Cleveland (the "FRB"), and equity securities. As of January 1, 2018, Peoples adopted ASU 2016-01, resulting in the reclassification of equity securities from available-for-sale investment securities to other investment securities.

The following table summarizes the carrying value of Peoples' other investment securities:

(Dollars in thousands)	March 31, 2018		December 31, 2017
March 31, 2018
FHLB stock	$	28,132	$	28,132
FRB stock	10,179		10,179
Equity securities (a)	7,471		—
Other	974		60
Total other investment securities	$	46,756	$	38,371

(a) As of January 1, 2018, Peoples adopted ASU 2016-01, resulting in the reclassification of equity securities from available-for-sale investment

securities to other investment securities.

Pledged Securities

Peoples had pledged available-for-sale investment securities with carrying values of $551.1 million and $522.7 million at March 31, 2018 and December 31, 2017, respectively, and held-to-maturity investment securities with carrying values of $17.9 million and $18.3 million at March 31, 2018 and December 31, 2017, respectively, to secure public and trust department deposits, and repurchase agreements in accordance with federal and state requirements.  Peoples also pledged available-for-sale investment securities with carrying values of $5.0 million and $6.7 million at March 31, 2018 and December 31, 2017, respectively, and held-to-maturity securities with carrying values of $19.0 million and $19.9 million at March 31, 2018 and December 31, 2017, respectively, to secure additional borrowing capacity at the FHLB and the FRB.

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Loans

3 Months Ended

Mar. 31, 2018

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. 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 major classifications of loan balances (in each case, net of deferred fees and costs) excluding loans held for sale, were as follows:

(Dollars in thousands)	March 31, 2018		December 31, 2017
Originated loans:
Commercial real estate, construction	$	99,757	$	107,118
Commercial real estate, other	627,932		595,447
Commercial real estate	727,689		702,565
Commercial and industrial	455,243		438,051
Residential real estate	302,890		304,523
Home equity lines of credit	87,722		88,902
Consumer, indirect	347,607		340,390
Consumer, direct	67,386		67,010
Consumer	414,993		407,400
Deposit account overdrafts	543		849
Total originated loans	$	1,989,080	$	1,942,290
Acquired loans:
Commercial real estate, construction	$	8,054	$	8,319
Commercial real estate, other	156,115		165,120
Commercial real estate	164,169		173,439
Commercial and industrial	33,815		34,493
Residential real estate	194,063		184,864
Home equity lines of credit	20,008		20,575
Consumer, indirect	253		329
Consumer, direct	940		1,147
Consumer	1,193		1,476
Total acquired loans	$	413,248	$	414,847
Loans, net of deferred fees and costs	$	2,402,328	$	2,357,137

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 purchased credit impaired loans included in the loan balances above are summarized as follows:

(Dollars in thousands)	March 31, 2018		December 31, 2017
Commercial real estate, other	$	7,794	$	8,117
Commercial and industrial	718		767
Residential real estate	19,156		19,532
Consumer	27		33
Total outstanding balance	$	27,695	$	28,449
Net carrying amount	$	18,864	$	19,564

Changes in the accretable yield for purchased credit impaired loans for the three months ended March 31, 2018 were as follows:

	For the three moths ended
(Dollars in thousands)	March 31, 2018			March 31, 2017
Balance, December 31, 2017	$	6,704		$	7,132
Accretion	(412		)	(461		)
Balance, March 31, 2018	$	6,292		$	6,671

Peoples completes annual re-estimations of cash flows on acquired purchased credit impaired loans in August of each year. At the end of each quarter, Peoples evaluates factors to determine if a material change has occurred in acquired loans accounted for and if a re-estimation is needed. Factors evaluated to determine if a re-estimation is needed include changes in: risk ratings, maturity dates, charge-offs, payoffs, nonaccrual status and loans that have become past due.

Cash flows expected to be collected on purchased credit impaired loans are estimated 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 the principal expected to be collected. In re-forecasting 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 $486.5 million and $487.2 million at March 31, 2018 and December 31, 2017, respectively. Peoples also pledges commercial loans to secure borrowings with the FRB. The outstanding balances of these loans totaled $71.5 million and $74.0 million at March 31, 2018 and December 31, 2017, 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, 2018		December 31, 2017		March 31, 2018		December 31, 2017
Originated loans:
Commercial real estate, construction	$	732	$	754	$	—	$	—
Commercial real estate, other	6,673		6,877		—		—
Commercial real estate	7,405		7,631		—		—
Commercial and industrial	1,598		739		—		—
Residential real estate	3,666		3,546		298		548
Home equity lines of credit	507		550		29		50
Consumer, indirect	306		256		—		—
Consumer, direct	17		39		—		16
Consumer	323		295		—		16
Total originated loans	$	13,499	$	12,761	$	327	$	614
Acquired loans:
Commercial real estate, other	$	269	$	192	$	71	$	215
Commercial and industrial	141		259		—		45
Residential real estate	2,062		2,168		632		730
Home equity lines of credit	230		312		—		22
Consumer, direct	1		—		—		—
Total acquired loans	$	2,703	$	2,931	$	703	$	1,012
Total loans	$	16,202	$	15,692	$	1,030	$	1,626

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, 2018
Originated loans:
Commercial real estate, construction	$	—	$	—	$	732	$	732	$	99,025	$	99,757
Commercial real estate, other	596		—		6,512		7,108		620,824		627,932
Commercial real estate	596		—		7,244		7,840		719,849		727,689
Commercial and industrial	1,352		1,180		1,570		4,102		451,141		455,243
Residential real estate	4,220		1,107		1,778		7,105		295,785		302,890
Home equity lines of credit	111		122		337		570		87,152		87,722
Consumer, indirect	1,510		176		152		1,838		345,769		347,607
Consumer, direct	204		24		11		239		67,147		67,386
Consumer	1,714		200		163		2,077		412,916		414,993
Deposit account overdrafts	—		—		—		—		543		543
Total originated loans	$	7,993	$	2,609	$	11,092	$	21,694	$	1,967,386	$	1,989,080
Acquired loans:
Commercial real estate, construction	$	33	$	—	$	—	$	33	$	8,021	$	8,054
Commercial real estate, other	490		—		264		754		155,361		156,115
Commercial real estate	523		—		264		787		163,382		164,169
Commercial and industrial	—		—		105		105		33,710		33,815
Residential real estate	2,499		782		1,982		5,263		188,800		194,063
Home equity lines of credit	59		—		182		241		19,767		20,008
Consumer, indirect	4		—		—		4		249		253
Consumer, direct	16		2		—		18		922		940
Consumer	20		2		—		22		1,171		1,193
Total acquired loans	$	3,101	$	784	$	2,533	$	6,418	$	406,830	$	413,248
Total loans	$	11,094	$	3,393	$	13,625	$	28,112	$	2,374,216	$	2,402,328

	Loans Past Due								Current Loans		Total Loans
(Dollars in thousands)	30 - 59 days		60 - 89 days		90 + Days		Total
December 31, 2017
Originated loans:
Commercial real estate, construction	$	—	$	—	$	—	$	—	$	107,118	$	107,118
Commercial real estate, other	990		—		6,492		7,482		587,965		595,447
Commercial real estate	990		—		6,492		7,482		695,083		702,565
Commercial and industrial	1,423		92		706		2,221		435,830		438,051
Residential real estate	4,562		1,234		2,408		8,204		296,319		304,523
Home equity lines of credit	502		80		395		977		87,925		88,902
Consumer, indirect	2,153		648		105		2,906		337,484		340,390
Consumer, direct	417		46		48		511		66,499		67,010
Consumer	2,570		694		153		3,417		403,983		407,400
Deposit account overdrafts	—		—		—		—		849		849
Total originated loans	$	10,047	$	2,100	$	10,154	$	22,301	$	1,919,989	$	1,942,290
Acquired loans:
Commercial real estate, construction	$	—	$	—	$	—	$	—	$	8,319	$	8,319
Commercial real estate, other	775		948		312		2,035		163,085		165,120
Commercial real estate	775		948		312		2,035		171,404		173,439
Commercial and industrial	—		1		171		172		34,321		34,493
Residential real estate	4,656		1,391		1,910		7,957		176,907		184,864
Home equity lines of credit	126		—		301		427		20,148		20,575
Consumer, indirect	3		—		—		3		326		329
Consumer, direct	10		11		—		21		1,126		1,147
Consumer	13		11		—		24		1,452		1,476
Total acquired loans	$	5,570	$	2,351	$	2,694	$	10,615	$	404,232	$	414,847
Total loans	$	15,617	$	4,451	$	12,848	$	32,916	$	2,324,221	$	2,357,137

During the first three months of 2018, Peoples' delinquency trends improved compared to the balances at December 31, 2017, as total loans past due declined in both the originated and acquired loan portfolios.

Credit Quality Indicators

As discussed in Note 1 of the Notes to the Consolidated Financial Statements included in Peoples' 2017 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.

“Special Mention” (grade 5): Loans in this risk grade are the equivalent of the regulatory definition of “Other Assets Especially Mentioned.” Loans in this risk 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 a 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 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, classification of the loan 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 a 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 loans within Peoples' loan portfolio based upon the most recent analysis performed:

	Pass Rated (Grades 1 - 4)		Special Mention (Grade 5)		Substandard (Grade 6)		Doubtful (Grade 7)		Not Rated		Total Loans
(Dollars in thousands)
March 31, 2018
Originated loans:
Commercial real estate, construction	$	92,383	$	6,190	$	732	$	—	$	452	$	99,757
Commercial real estate, other	596,903		14,058		16,971		—		—		627,932
Commercial real estate	689,286		20,248		17,703		—		452		727,689
Commercial and industrial	404,591		46,477		4,175		—		—		455,243
Residential real estate	17,037		579		11,270		131		273,873		302,890
Home equity lines of credit	454		—		—		—		87,268		87,722
Consumer, indirect	51		6		—		—		347,550		347,607
Consumer, direct	37		—		—		—		67,349		67,386
Consumer	88		6		—		—		414,899		414,993
Deposit account overdrafts	—		—		—		—		543		543
Total originated loans	$	1,111,456	$	67,310	$	33,148	$	131	$	777,035	$	1,989,080
Acquired loans:
Commercial real estate, construction	$	8,003	$	—	$	51	$	—	$	—	$	8,054
Commercial real estate, other	144,647		3,440		7,918		110		—		156,115
Commercial real estate	152,650		3,440		7,969		110		—		164,169
Commercial and industrial	31,351		185		2,279		—		—		33,815
Residential real estate	11,633		647		1,024		—		180,759		194,063
Home equity lines of credit	44		—		—		—		19,964		20,008
Consumer, indirect	8		—		—		—		245		253
Consumer, direct	32		—		—		—		908		940
Consumer	40		—		—		—		1,153		1,193
Total acquired loans	$	195,718	$	4,272	$	11,272	$	110	$	201,876	$	413,248
Total loans	$	1,307,174	$	71,582	$	44,420	$	241	$	978,911	$	2,402,328

	Pass Rated (Grades 1 - 4)		Special Mention (Grade 5)		Substandard (Grade 6)		Doubtful (Grade 7)		Not Rated		Total Loans
(Dollars in thousands)
December 31, 2017
Originated loans:
Commercial real estate, construction	$	100,409	$	5,502	$	754	$	—	$	453	$	107,118
Commercial real estate, other	561,320		17,189		16,938		—		—		595,447
Commercial real estate	661,729		22,691		17,692		—		453		702,565
Commercial and industrial	420,477		13,062		4,512		—		—		438,051
Residential real estate	17,896		1,000		11,371		216		274,040		304,523
Home equity lines of credit	454		—		—		—		88,448		88,902
Consumer, indirect	55		8		—		—		340,327		340,390
Consumer, direct	33		—		—		—		66,977		67,010
Consumer	88		8		—		—		407,304		407,400
Deposit account overdrafts	—		—		—		—		849		849
Total originated loans	$	1,100,644	$	36,761	$	33,575	$	216	$	771,094	$	1,942,290
Acquired loans:
Commercial real estate, construction	$	8,267	$	—	$	52	$	—	$	—	$	8,319
Commercial real estate, other	149,486		6,527		9,107		—		—		165,120
Commercial real estate	157,753		6,527		9,159		—		—		173,439
Commercial and industrial	32,011		157		2,325		—		—		34,493
Residential real estate	12,543		593		1,105		—		170,623		184,864
Home equity lines of credit	124		—		—		—		20,451		20,575
Consumer, indirect	12		—		—		—		317		329
Consumer, direct	35		—		—		—		1,112		1,147
Consumer	47		—		—		—		1,429		1,476
Total acquired loans	$	202,478	$	7,277	$	12,589	$	—	$	192,503	$	414,847
Total loans	$	1,303,122	$	44,038	$	46,164	$	216	$	963,597	$	2,357,137

In the first three months of 2018, Peoples' classified loans, which are loans categorized as substandard or doubtful, declined compared to the balances at December 31, 2017 mostly due to loan payoffs.

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, 2018
Commercial real estate, construction	$	819	$	—	$	732	$	732	$	—	$	743	$	—
Commercial real estate, other	14,480		14		13,132		13,146		1		13,295		105
Commercial real estate	15,299		14		13,864		13,878		1		14,038		105
Commercial and industrial	2,429		1,699		557		2,256		224		1,890		15
Residential real estate	24,422		476		22,459		22,935		57		22,839		312
Home equity lines of credit	1,647		70		1,573		1,643		15		1,652		20
Consumer, indirect	301		74		231		305		20		285		5
Consumer, direct	76		53		23		76		39		77		1
Consumer	377		127		254		381		59		362		6
Total	$	44,174	$	2,386	$	38,707	$	41,093	$	356	$	40,781	$	458
December 31, 2017
Commercial real estate, construction	$	821	$	—	$	754	$	754	$	—	$	788	$	—
Commercial real estate, other	14,909		14		13,606		13,620		1		14,392		503
Commercial real estate	15,730		14		14,360		14,374		1		15,180		503
Commercial and industrial	1,690		951		572		1,523		199		1,668		65
Residential real estate	24,743		477		22,626		23,103		58		23,195		1,246
Home equity lines of credit	1,707		81		1,624		1,705		18		1,505		85
Consumer, indirect	273		70		206		276		26		184		20
Consumer, direct	87		56		28		84		37		79		7
Consumer	360		126		234		360		63		263		27
Total	$	44,230	$	1,649	$	39,416	$	41,065	$	339	$	41,811	$	1,926

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 (a)
(Dollars in thousands)	Number of Contracts	Pre-Modification		Post-Modification		Remaining Recorded Investment
March 31, 2018
Originated loans:
Residential real estate	2	$	193	$	193	$	193
Consumer, indirect	7	86		86		86
Consumer, direct	2	4		4		4
Consumer	9	90		90		90
Total originated loans	11	$	283	$	283	$	283
Acquired loans:
Commercial real estate, other	1	$	50	$	50	$	50
Residential real estate	2	269		269		269
Consumer, other	1	1		1		1
Total acquired loans	4	$	320	$	320	$	320
March 31, 2017
Originated loans:
Residential real estate	2	$	105	$	105	$	105
Home equity lines of credit	3	226		226		225
Consumer, indirect	4	80		80		80
Consumer, direct	2	9		9		9
Consumer	6	89		89		89
Total originated loans	11	$	420	$	420	$	419
Acquired loans:
Commercial real estate, other	2	$	271	$	271	$	271
Residential real estate	2	126		126		126
Home equity lines of credit	4	294		294		326
Consumer, direct	1	9		9		9
Total acquired loans	9	$	700	$	700	$	732
(a) 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.

The following table presents those acquired loans modified in a TDR during the year that subsequently defaulted (i.e., are 90 days or more past due following a modification) during the three months ended March 31:

	March 31, 2018					March 31, 2017
(Dollars in thousands)	Number of Contracts	Recorded Investment (a)		Impact on the Allowance for Loan Losses		Number of Contracts	Recorded Investment (a)		Impact on the Allowance for Loan Losses
Acquired loans:
Residential real estate	—	$	—	$	—	1	$	73	$	—
Total	—	$	—	$	—	1	$	73	$	—
(a) 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 loans that were modified as a TDR during the last twelve months that subsequently defaulted. Peoples had no 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 Indirect			Consumer Other			Deposit Account Overdrafts			Total
Balance, January 1, 2018	$	7,797		$	5,813		$	904		$	693		$	2,944		$	464		$	70		$	18,685
Charge-offs	(842		)	(31		)	(145		)	(37		)	(929		)	(110		)	(205		)	(2,299		)
Recoveries	15			—			26			7			134			69			70			321
Net (charge-offs)	(827		)	(31		)	(119		)	(30		)	(795		)	(41		)	(135		)	(1,978		)
Provision for (recovery of) loan losses	1,092			(513		)	301			27			885			50			141			1,983
Balance, March 31, 2018	$	8,062		$	5,269		$	1,086		$	690		$	3,034		$	473		$	76		$	18,690
Period-end amount allocated to:
Loans individually evaluated for impairment	$	1		$	224		$	57		$	15		$	20		$	39		$	—		$	356
Loans collectively evaluated for impairment	8,061			5,045			1,029			675			3,014			434			76			18,334
Ending balance	$	8,062		$	5,269		$	1,086		$	690		$	3,034		$	473		$	76		$	18,690
Balance, January 1, 2017	$	7,172		$	6,353		$	982		$	688		$	2,312		$	518		$	171		$	18,196
Charge-offs	—			(117		)	(108		)	(3		)	(483		)	(40		)	(349		)	(1,100		)
Recoveries	102			—			89			3			206			50			65			515
Net recoveries (charge-offs)	102			(117		)	(19		)	—			(277		)	10			(284		)	(585		)
(Recovery of) provision for loan losses	(208		)	298			182			(13		)	374			(90		)	224			767
Balance, March 31, 2017	$	7,066		$	6,534		$	1,145		$	675		$	2,409		$	438		$	111		$	18,378
Period-end amount allocated to:
Loans individually evaluated for impairment	$	462		$	449		$	139		$	16		$	24		$	2		$	—		$	1,092
Loans collectively evaluated for impairment	6,604			6,085			1,006			659			2,385			436			111			17,286
Ending balance	$	7,066		$	6,534		$	1,145		$	675		$	2,409		$	438		$	111		$	18,378

Allowance for Loan Losses for Acquired Loans

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 purchased 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.

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, 2018		March 31, 2017
Purchased credit impaired loans:
Balance, beginning of period	$	108	$	233
Recovery of loan losses	—		(143		)
Balance, March 31	$	108	$	90

During the first quarter of 2017, Peoples recorded a recovery of loan losses that was related to an acquired purchased credit impaired loan that was paid off during the quarter.

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Long-Term Borrowings

3 Months Ended

Mar. 31, 2018

Debt Disclosure [Abstract]

Long-Term Borrowings

Long-Term Borrowings

The following table summarizes Peoples' long-term borrowings:

	March 31, 2018					December 31, 2017
(Dollars in thousands)	Balance			Weighted- Average Rate		Balance			Weighted- Average Rate
FHLB putable, non-amortizing, fixed-rate advances	$	95,000		1.94	%	$	115,000		1.86	%
FHLB amortizing, fixed-rate advances	21,352			2.02	%	21,939			2.02	%
Junior subordinated debt securities	7,151			6.89	%	7,107			6.51	%
Unamortized debt issuance costs	(22		)	—	%	(27		)	—	%
Total long-term borrowings	$	123,481		2.24	%	$	144,019		2.11	%

Peoples continually evaluates its overall balance sheet position given the interest rate environment. During the first three months of 2018, no additional borrowings were entered into and one long-term FHLB non-amortizing advance in the amount of $20.0 million was reclassified to short-term borrowings as the maturity became less than one year.

As of March 31, 2018, Peoples' FHLB putable and callable option-based advances had one remaining putable or callable option. The FHLB has the option, at its sole discretion, to terminate the advance after the initial fixed rate period of three months, requiring full repayment of the advance by Peoples, prior to the stated maturity. If the advance is terminated prior to maturity, the FHLB will offer Peoples replacement funding at the then-prevailing rate on an advance product then offered by the FHLB, subject to normal FHLB credit and collateral requirements. Peoples is required to make quarterly interest payments.

The amortizing, fixed-rate FHLB advances have a fixed rate for the term of each advance, with maturities ranging from two to thirteen years. These advances require monthly principal and interest payments, with some having a constant prepayment rate requiring an additional principal payment annually. These advances are not eligible for optional prepayment prior to maturity.

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, 2018, Peoples had seven interest rate swaps with a notional value of $60.0 million associated with Peoples' cash outflows for various FHLB advances. Two of the seven swaps became effective in January 2018. Of the five remaining swaps two will become effective in April 2018, one in July of 2018 and two in October 2018. Theses dates roughly coincide with the maturity of existing FHLB advances. Additional information regarding Peoples' interest rate swaps can be found in Note 14 of the Notes to the Unaudited Consolidated Financial Statements included in Peoples' 2017 Form 10-K..

Peoples maintains a multi-year unsecured $15.0 million revolving credit facility (the “Credit Facility”) with Raymond James Bank, N.A. that matures on March 4, 2019. Borrowings under the Credit Facility may be used: (i) to make acquisitions; (ii) to make stock repurchases; (iii) for working capital needs; and (iv) for other general corporate purposes. Each loan under the Credit Facility will bear interest per annum at a rate equal to 3.00% plus the one-month LIBOR rate, which rate will reset monthly. As of March 31, 2018, there were no borrowings outstanding under the Credit Facility. Additional information regarding the Credit Facility can be found in Note 9 of the Notes to the Consolidated Financial Statements included in Peoples' 2017 Form 10-K.

The aggregate minimum annual retirements of long-term borrowings in future periods are as follows:

(Dollars in thousands)	Balance		Weighted-Average Rate
Nine months ending December 31, 2018	$	3,840	1.58	%
Year ending December 31, 2019	13,508		1.21	%
Year ending December 31, 2020	25,564		1.83	%
Year ending December 31, 2021	21,979		1.74	%
Year ending December 31, 2022	16,521		1.96	%
Thereafter	42,069		3.26	%
Total long-term borrowings	$	123,481	2.24	%

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Stockholders' Equity

3 Months Ended

Mar. 31, 2018

Equity [Abstract]

Stockholders' Equity

Stockholders’ Equity

The following table details the progression in Peoples’ common shares and treasury stock during the three months ended March 31, 2018:

	Common Shares	Treasury Stock
Shares at December 31, 2017	18,952,385	702,449
Changes related to stock-based compensation awards:
Release of restricted common shares	—	28,387
Cancellation of restricted common shares	—	170
Exercise of stock appreciation rights	—	(102	)
Grant of restricted common shares	—	(86,876	)
Grant of common shares	—	(11,112	)
Changes related to deferred compensation plan for Boards of Directors:
Purchase of treasury stock	—	1,197
Reissuance of treasury stock	—	(73	)
Common shares issued under dividend reinvestment plan	4,453	—
Common shares issued under compensation plan for Boards of Directors	—	(3,600	)
Shares at March 31, 2018	18,956,838	630,440

Under its Amended Articles of Incorporation, Peoples is authorized to issue up to 50,000 preferred shares, in one or more series, having such voting powers, designations, preferences, rights, qualifications, limitations and restrictions as determined by Peoples' Board of Directors. At March 31, 2018, Peoples had no preferred shares issued or outstanding.

On April 13, 2018, Peoples issued 1,152,711 common shares to ASB Financial Corp. ("ASB") shareholders.

Accumulated Other Comprehensive Income (Loss)

The following table details the change in the components of Peoples’ accumulated other comprehensive income (loss) for the three months ended March 31, 2018:

(Dollars in thousands)	Unrealized Loss on Securities			Unrecognized Net Pension and Postretirement Costs			Unrealized Loss on Cash Flow Hedge		Accumulated Other Comprehensive Loss
Balance, December 31, 2017	(2,088		)	(4,256		)	1,129		(5,215		)
Reclassification adjustments to net income:
Realized gain on sale of securities, net of tax	(1		)	—			—		(1		)
Amounts reclassified out of accumulated other comprehensive loss income per ASU 2016-01	(5,020		)	—			—		(5,020		)
Other comprehensive (loss) income, net of reclassifications and tax	(6,935		)	20			1,089		(5,826		)
Balance, March 31, 2018	$	(14,044	)	$	(4,236	)	$	2,218	$	(16,062	)

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Employee Benefit Plans

3 Months Ended

Mar. 31, 2018

Retirement Benefits [Abstract]

Employee Benefit Plans

Employee Benefit Plans

Peoples sponsors a noncontributory defined benefit pension plan that covers substantially all employees hired before January 1, 2010.  The plan provides retirement benefits based on an employee’s years of service and compensation.  For employees hired before January 1, 2003, the amount of postretirement benefit is based on the employee’s average monthly compensation over the highest five consecutive years out of the employee’s last ten years with Peoples while an eligible employee.  For employees hired on or after January 1, 2003, the amount of postretirement benefit is based on 2% of the employee’s annual compensation during the years 2003 through 2009, plus accrued interest.  Effective January 1, 2010, the pension plan was closed to new entrants.  Effective March 1, 2011, the accrual of pension plan benefits for all participants was frozen. Peoples recognized this freeze as a curtailment as of December 31, 2010 and March 1, 2011, under the terms of the pension plan. Peoples also provides post-retirement health and life insurance benefits to former employees and directors. Only those individuals who retired before January 27, 2012 were eligible for life insurance benefits. As of January 1, 2011, all retirees who desire to participate in Peoples medical plan do so by electing COBRA, which provides up to 18 months of coverage; retirees over the age of 65 also have the option to pay to participate in a group Medicare supplemental plan. Peoples’ policy is to fund the cost of the health benefits as they arise.

The following tables detail the components of the net periodic cost for the plans:

	Pension Benefits
	Three Months Ended
	March 31,
(Dollars in thousands)	2018			2017
Interest cost	$	105		$	113
Expected return on plan assets	(147		)	(138		)
Amortization of net loss	28			25
Net periodic cost	$	(14	)	$	—

	Postretirement Benefits
	Three Months Ended
	March 31,
(Dollars in thousands)	2018			2017
Interest cost	$	1		$	1
Amortization of net gain	(2		)	(2		)
Net periodic cost	$	(1	)	$	(1	)

There were no settlement charges recorded in the three months ended March 31, 2018 or March 31, 2017 under the noncontributory defined benefit pension plan.

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Earnings Per Common Share

3 Months Ended

Mar. 31, 2018

Earnings Per Share [Abstract]

Earnings Per Common Share

Earnings Per Common Share

The calculations of basic and diluted earnings per common share were as follows:

	Three Months Ended
	March 31,
(Dollars in thousands, except per share data)	2018		2017
Distributed earnings allocated to common shareholders	$	4,716	$	3,604
Undistributed earnings allocated to common shareholders	6,962		5,162
Net earnings allocated to common shareholders	$	11,678	$	8,766
Weighted-average common shares outstanding	18,126,089		18,029,991
Effect of potentially dilutive common shares	129,946		162,966
Total weighted-average diluted common shares outstanding	18,256,035		18,192,957
Earnings per common share:
Basic	$	0.64	$	0.49
Diluted	$	0.64	$	0.48
Anti-dilutive shares excluded from calculation:
Restricted shares, stock options and stock appreciation rights	32		455

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Financial Instruments with Off- Balance Sheet Risk (Notes)

3 Months Ended

Mar. 31, 2018

Financial Instruments with Off-Balance Sheet Risk [Abstract]

Financial Instruments Disclosure [Text Block]

Financial Instruments with Off-Balance Sheet Risk

Derivatives and Hedging Activities - Risk Management Objective of Using Derivatives

Peoples is exposed to certain risks arising from both its business operations and economic conditions. Peoples principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. Peoples manages economic risks, including interest rate, liquidity, and credit risk, primarily by managing the amount, sources, and duration of its assets and liabilities and through the use of derivative financial instruments. Specifically, Peoples enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known or expected cash amounts, the value of which are determined by interest rates. Peoples’ derivative financial instruments are used to manage differences in the amount, timing, and duration of Peoples' known or expected cash receipts and its known or expected cash payments principally related to certain variable rate borrowings. Peoples also has interest rate derivatives that result from a service provided to certain qualifying customers and, therefore, are not used to manage interest rate risk in Peoples' assets or liabilities. Peoples manages a matched book with respect to customer-related derivative financial instruments in order to minimize its net risk exposure resulting from such transactions.

Fair Values of Derivative Instruments on the Balance Sheet

Peoples' fair value of the derivative financial instruments was $6.6 million in an asset position and $3.9 million in a liability position at March 31, 2018, and there was $4.6 million in an asset position and $3.2 million in a liability position at December 31, 2017. The amounts are recorded in other assets, and accrued expenses and other liabilities on the consolidated balance sheet at the periods indicated.

Cash Flow Hedges of Interest Rate Risk

Peoples' objectives in using interest rate derivatives are to add stability to interest income and expense, and to manage its exposure to interest rate movements. To accomplish these objectives, 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, 2018, Peoples had seven interest rate swaps with a notional value of $60.0 million associated with Peoples' cash outflows for various FHLB advances.

For derivatives designated as cash flow hedges, the effective portion of changes in the fair value of each derivative is initially reported in accumulated other comprehensive income ("AOCI") (outside of earnings), net of tax, and subsequently reclassified to earnings when the hedged transaction affects earnings, and the ineffective portion of changes in the fair value of the derivative is recognized directly in earnings. Peoples assesses the effectiveness of each hedging relationship by comparing the changes in cash flows of the derivative hedging instrument with the changes in cash flows of the designated hedged transaction. The reset dates and the payment dates on the 90-day advances used to fund the swaps are matched to the reset dates and payment dates on the receipt of the 3-month LIBOR floating portion of the swaps to ensure effectiveness of the cashflow hedge. Effectiveness is measured by ensuring that reset dates and payment dates are matched.

Peoples entered into the seven interest rate swap contracts, described above, whereby Peoples will pay a fixed rate of interest for up to ten years while receiving a floating rate component of interest equal to the three-month LIBOR rate. The received floating rate component is intended to offset the rate on the rolling three-month FHLB advances. Amounts reported in AOCI related to derivatives will be reclassified to interest income or expense as interest payments are made or received on Peoples' variable-rate assets or liabilities. During the three months ended March 31, 2018, and March 31, 2017, Peoples had no reclassifications to interest expense. During the next twelve months, Peoples estimates that no interest expense amount will be reclassified.

The amount of accumulated other comprehensive pre-tax income for Peoples' cash flow hedges was $2.8 million at March 31, 2018. There were no pre-tax net losses recorded for the three months ended March 31, 2018. Additionally, Peoples had no reclassifications to earnings in the three months ended March 31, 2018 or March 31, 2017.

Non-Designated Hedges

Peoples maintains an interest rate protection program for commercial loan customers, which was established in 2010. Under this program, Peoples provides its customer with a fixed-rate loan while creating a variable-rate asset for Peoples by the customer entering into an interest rate swap with Peoples on terms that match the loan. Peoples offsets its risk exposure by entering into an offsetting interest rate swap with an unaffiliated institution. These interest rate swaps do not qualify as designated hedges; therefore, each swap is accounted for as a standalone derivative. Peoples had interest rate swaps associated with commercial loans with a notional value of $373.1 million and fair value of $3.9 million of equally offsetting assets and liabilities at March 31, 2018, and a notional value of $363.3 million and fair value of $3.0 million of equally offsetting assets and liabilities at December 31, 2017. These interest rate swaps did not have a material impact on Peoples' results of operation or financial condition.

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Stock-Based Compensation

3 Months Ended

Mar. 31, 2018

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock-Based Compensation

Stock-Based Compensation 

Under the Peoples Bancorp Inc. Second Amended and Restated 2006 Equity Plan (the "2006 Equity Plan"), Peoples may grant, among other awards, nonqualified stock options, incentive stock options, restricted stock awards, stock appreciation rights ("SARs") and unrestricted share awards to employees and non-employee directors. The total number of common shares available under the 2006 Equity Plan is 1,081,260.  The maximum number of common shares that can be issued for incentive stock options is 800,000 common shares. Prior to 2007, Peoples granted nonqualified and incentive stock options to employees and nonqualified stock options to non-employee directors under the 2006 Equity Plan and predecessor plans.  Since 2009, Peoples has granted restricted common shares to employees and restricted common shares to non-employee directors subject to the terms and conditions prescribed by the 2006 Equity Plan. In 2018, the Board of Directors granted unrestricted common shares to non-employee directors and to all full-time and part-time employees who did not already participate in the equity plans. In general, common shares issued in connection with stock-based awards are issued from treasury shares to the extent available.  If no treasury shares are available, common shares are issued from authorized but unissued common shares.

Stock Appreciation Rights

SARs granted to employees have an exercise price equal to the fair market value of Peoples’ common shares on the date of grant and will be settled using common shares of Peoples.  Additionally, the SARs granted to employees vested three years after the respective grant dates and expired ten years from the respective date of grant. The most recent grant of SARs occurred in 2008 and expired on February 20, 2018. The following table summarizes the changes to Peoples' SARs for the three months ended March 31, 2018:

	Number of Common Shares Subject to SARs	Weighted- Average Exercise Price		Weighted-Average Remaining Contractual Life	Aggregate Intrinsic  Value
Outstanding at January 1	314	$	23.77
Exercised	314	23.77
Outstanding at March 31	—	$	—	0.0 years	$	—
Exercisable at March 31	—	$	—	0.0 years	$	—

Restricted Common Shares

Under the 2006 Equity Plan, Peoples may award restricted common shares to officers, key employees and non-employee directors.  Restrictions on restricted common shares awarded to non-employee directors expired after six months, for awards granted through 2017. Beginning in 2018, common shares awarded to non-employee directors vest immediately upon grant with no restrictions. Restrictions on restricted common shares awarded to employees expire after periods ranging from one to three years. In the first three months of 2018, Peoples granted an aggregate of 84,876 restricted common shares subject to performance-based vesting to officers and key employees with restrictions that will lapse three years after the grant date provided that in order for the restricted common shares to vest in full, Peoples must have reported positive net income and maintained a well capitalized status by regulatory standards for each of the three fiscal years preceding the vesting date. During the first three months of 2018, Peoples granted, to certain key employees, an aggregate of 2,000 restricted common shares subject to time-based vesting with restrictions that will lapse three years after the grant date.

The following table summarizes the changes to Peoples’ restricted common shares for the three months ended March 31, 2018:

	Time-Based Vesting			Performance-Based Vesting
	Number of Common Shares	Weighted-Average Grant Date Fair Value		Number of Common Shares	Weighted-Average Grant Date Fair Value
Outstanding at January 1	33,082	$	22.85	176,218	$	25.50
Awarded	2,000	35.32		84,876	35.43
Released	—	—		82,861	23.63
Forfeited	—	—		170	33.66
Outstanding at March 31	35,082	$	23.56	178,063	$	31.09

For the three months ended March 31, 2018, the total intrinsic value for restricted common shares released was $2.9 million compared to $0.7 million for the three months ended March 31, 2017.

Stock-Based Compensation

Peoples recognizes stock-based compensation expense, which is included as a component of Peoples' salaries and employee benefit costs, based on the estimated fair value of the awards on the grant date.  The following table summarizes the amount of stock-based compensation expense and related tax benefit recognized for each period:

	Three Months Ended
	March 31,
(Dollars in thousands)	2018			2017
Total stock-based compensation expense	$	1,028		$	568
Recognized tax benefit	(216		)	(199		)
Net expense recognized	$	812		$	369

Total unrecognized stock-based compensation expense related to unvested awards was $3.1 million at March 31, 2018, which will be recognized over a weighted-average period of 2.2 years. On January 31, 2018, Peoples granted, to non-employee directors, an aggregate of 3,600 unrestricted common shares, which resulted in an additional $128,000 of stock-based compensation expense being recognized. On February 14, 2018, the Board of Directors granted an aggregate of 11,112 unrestricted common shares to all full-time and part-time employees who did not already participate in the equity plans, which resulted in an additional $388,000 of stock-based compensation expense being recognized.

Performance Unit Award Agreement

Under the 2006 Equity Plan, Peoples may award performance unit awards to officers, key employees and non-employee directors.  On July 26, 2017, Peoples granted a total of seven performance unit awards to officers with a maximum aggregate dollar amount of $1.3 million represented by the performance units subject to such awards, with each performance unit representing $1.00. The performance unit awards granted are for the performance period beginning January 1, 2018 and ending on December 31, 2019, and will be subject to two performance goals. Twenty-five percent of the performance units subject to each award will vest if, but only if, the related target performance goal is achieved. The remaining 75% of the performance units subject to each award will vest based on the relative performance (measured by percentile ranking) with respect to the related maximum performance goal. If for the performance period, the target level of achievement for the first performance goal and/or the maximum level of achievement for the second performance goal is not reached, the dollar amount represented by the performance units associated with each performance goal will be adjusted to reflect the level of performance achieved. After the vesting date, the participant will receive that number of common shares of Peoples equal to (i) the aggregate number of participant's performance units (and dollar value of such performance units) that vested based on the performance achieved under both performance goals (ii) divided by the fair market value of a common share of Peoples on the date of such vesting and rounded down to the nearest whole common share.

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Revenue (Notes)

3 Months Ended

Mar. 31, 2018

Revenue Recognition and Deferred Revenue [Abstract]

Revenue from Contract with Customer [Text Block]

Revenue

As of January 1, 2018, Peoples adopted ASU 2014-09 - Revenue from Contracts with Customers (Topic 606), and all subsequent updates that modified ASC 606. Peoples has elected to adopt this new accounting guidance using the modified retrospective approach. The modified retrospective approach uses a cumulative-effect adjustment to retained earnings to reflect uncompleted contracts in the initial application of the guidance. As of January 1, 2018, Peoples recorded a cumulative-effect adjustment for uncompleted contracts, which resulted in a reduction to retained earnings and an increase in accrued expenses and other liabilities of $3.1 million, which is net of federal income taxes. The impact during the first quarter of 2018 was an increase in insurance income and a decrease in retained earnings of $0.4 million as a result of applying ASC 606. Prior period amounts are not adjusted and continue to be reported under the accounting standards in effect for those respective periods.

Peoples recognizes revenues as they are earned based on contractual terms, or as services are provided and collectability is reasonably assured. Estimates of variable consideration are included in revenue to the extent that it is probable that a significant reversal of cumulative revenue will not occur, once the uncertainty is resolved. Peoples recognizes revenue from contracts with customers under the following revenue streams:

Insurance Income: Insurance income generally consists of commissions and fees from the sale of insurance policies, third-party administration services and performance-based commissions from insurance companies.

Peoples recognizes commission income from the sale of insurance policies when it acts as an agent between the insurance carrier and policyholder, arranging for the insurance carrier to provide policies to policyholders, and acts on behalf of the insurance carrier by providing customer service to the policyholder during the policy period. Commission income is recognized over time, using the output method of time elapsed, which corresponds with the underlying insurance policy period, for which Peoples is obligated to perform under contract with the insurance carrier. Commission income is variable, as it is comprised of a certain percentage of the underlying policy premium. Peoples estimates the variable consideration based upon the "most likely amount" method, and does not expect or anticipate a significant reversal of revenue in future periods, based upon historical experience. Payment is due from the insurance carrier for commission income once the insurance policy has been sold. Peoples has elected to apply a practical expedient related to capitalizable costs, which are the commissions paid to insurance producers, and will expense these commissions paid to insurance producers as incurred, as these costs are related to the commission income and would have been amortized within one year or less if they had been capitalized, the same period over which the commission income was earned.

Fees related to third-party administration services performed are recognized over time, in the period in which services have been provided, and are recognized monthly in the month the services were performed.

Performance-based commissions from insurance companies are recognized at a point in time, when received, and no contingencies remain.

Trust and Investment Income: Trust and investment income consists of revenue from fiduciary and brokerage activities, which includes fees for services such as asset management, record keeping, retirement services and estate management, and investment commissions and fees related to the sale of investments. Trust and investment income is recognized over time which reflects the duration of the contract period for which services have been provided. Trust and investment income is variable as it is based on the value of assets under administration and management, and specific transactions. Peoples estimates the variable consideration based upon the most likely amount method, and does not expect or anticipate a significant reversal of revenue in future periods. Payment is due from the customer when billed, which is typically a monthly or quarterly billing for services rendered in the most recent period, for which the performance obligation has been satisfied. Peoples has elected to apply a practical expedient of right to invoice when recognizing trust and investment income, as Peoples has fulfilled the performance obligation, the customer has consumed the service, and Peoples has a right to the related income. Peoples has also elected to apply a practical expedient related to capitalizable costs, which are the commissions paid to financial advisors, and will expense these commissions paid to financial advisors as incurred, as these costs are related to thetrust and investment income and would have been amortized within one year or less if they had been capitalized, the same period over which the income was earned.

Electronic Banking Income: Electronic banking income consists of two revenue streams related to interchange income and promotional and usage income.

Peoples recognizes interchange income over time, on a monthly basis, and is based on transactional volume of debit card activity completed by its customers during the month in which income is recognized. Peoples is obligated to certain debit card activity being performed by its customers over a certain period of time. Interchange income is variable as it is based on the transaction volume of debit card activity completed by Peoples' customers. Peoples estimates the variable consideration based upon the most likely amount method, and does not expect or anticipate a significant reversal of revenue in future periods. Payment is due from the vendor within one month of the completed customer debit card activity. Peoples has elected to apply a practical expedient of right to invoice when recognizing interchange income, as Peoples has fulfilled the required performance obligations, the vendor has consumed the service, and Peoples has a right to the related income.

Peoples also recognizes promotional and usage income over time, on a monthly basis, and is related to branding of debit cards and promotion or use of certain services provided by third-party vendors. Peoples is obligated to brand its debit cards in a certain manner, and promote and use services provided by third-party vendors. Promotional and usage income is variable as it is based on certain metrics achieved for promotion and usage of services provided by the third-party vendors. Peoples estimates the variable consideration based upon the most likely amount method, and does not expect or anticipate a significant reversal of revenue in future periods. Payment is due from the third-party vendor within 45 days of the monthly fulfillment of Peoples' performance obligation. Peoples has elected to apply a practical expedient of right to invoice when recognizing promotional and usage income, as Peoples has fulfilled the required performance obligations, the vendor has consumed the service, and Peoples has a right to the related income.

Deposit Account Service Charges: Deposit account service charges consist of two revenue streams related to ongoing maintenance fees for deposit accounts and certain transactional-based fees.

Ongoing maintenance fees are recognized on a monthly basis, with the monthly period beginning on the day of the month on which the account was opened. Ongoing maintenance fee income is variable as these fees can be reduced if a customer meets certain qualifying metrics. Peoples estimates the variable consideration based upon the most likely amount method, and does not expect or anticipate a significant reversal of revenue in future periods. For accounts that are assessed maintenance fees through the account analysis process, payment is due from the customer within one month of the monthly period in which the account was open. For all other accounts, monthly maintenance fees are assessed to the account on the last day of the monthly period. Peoples has elected to apply a practical expedient of right to invoice when recognizing ongoing maintenance fees for deposit accounts, as Peoples has fulfilled the required performance obligations, the customer has consumed the service, and Peoples has a right to the related income.

Transactional-based deposit account fees are recognized at a point in time, which is at the completion of the relevant transaction. Peoples is obligated to perform certain transactions as requested by its consumer and business deposit account customers, which are outside of the normal maintenance requirements. Transactional-based deposit account fee income is variable as these fees are directly related to a service request from the customer. Peoples estimates the variable consideration based upon the most likely amount method, and does not expect or anticipate a significant reversal of revenue in future periods. Payment is due from the customer at the time of completion of the requested transaction.

Commercial Loan Swap Fees: Commercial loan swap fees consist of income related to transactions in which Peoples acts as an agent between a third-party vendor and certain Peoples commercial loan customers for which an interest rate swap occurs. Commercial loan swap fees are recognized at a point in time, when the transaction has been completed, and there is no recourse or further performance obligation required of Peoples. Commercial loan swap fee income is variable as these fees are a certain percentage of the total swap fee collected on a completed transaction. Peoples estimates the variable consideration based upon the most likely amount method, and does not expect or anticipate a significant reversal of revenue in future periods. Payment is due from the customer at the time of completion of the requested transaction.

Other Non-Interest Income: Other non-interest income includes certain revenues that are transactional-based, such as wire transfer fees, money order fees and other ancillary fees or services. These transactional-based fees are recognized as income at a point in time, at the completion of the relevant transaction. Transactional-based other non-interest income is variable as these fees are directly related to a service request from the customer. Peoplesestimates the variable consideration based upon the most likely amount method, and does not expect or anticipate a significant reversal of revenue in future periods. Payment is due from the customer at the time of completion of the requested transaction.

The following table details Peoples' revenue from contracts with customers for the three months ended March 31, 2018:

	Three Months Ended
(Dollars in thousands)	March 31, 2018
Insurance income:
Commission and fees from sale of insurance policies (a)	$	3,189
Fees related to third-party administration services (a)	119
Performance-based commissions (b)	1,347
Trust and investment income (a)	3,068
Electronic banking income:
Interchange income (a)	2,264
Promotional and usage income (a)	521
Deposit account service charges:
Ongoing maintenance fees for deposit accounts (a)	675
Transactional-based fees (b)	1,445
Commercial loan swap fees (b)	116
Other non-interest income transactional-based fees (b)	281
Total	$	13,025
Timing of revenue recognition:
Services transferred over time	$	9,836
Services transferred at a point in time	3,189
Total	$	13,025

(a)Services transferred over time

(b)Services transferred at a point in time

Peoples records contract liabilities for payments received for commission income related to the sale of insurance policies, for which the performance obligations have not yet been fulfilled. The contract liabilities are recognized as income over time, during the period in which the performance obligations are fulfilled, which is over the insurance policy period. The following table details the change in Peoples' contract liabilities for the period ended March 31, 2018:

	Contract Liabilities
(Dollars in thousands)
Balance, January 1, 2018 (a)	$	4,700
Additional deferred income	1,824
Recognition of income previously deferred	(2,215		)
Balance, March 31, 2018	$	4,309

(a)The amount of $3.1 million reported elsewhere throughout the document is the $4.7 million noted above, net of federal corporate income taxes.

The following table details the impact of the adoption of ASU 2014-09 to Peoples' consolidated statements of income and balance sheets, compared to amounts that would have been recognized under previous guidance:

	At or For the Three Months Ended
	March 31, 2018
(Dollars in thousands)	As Reported		Impact of ASC 606			Amounts Recognized Under Previous Guidance
Non-interest income:
Insurance income	$	4,655	$	(391	)	$	4,264
Liabilities:
Accrued expenses and other liabilities	37,977		2,746			35,231
Stockholders' equity:
Retained earnings	143,297		(2,746		)	146,043

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Summary of Significant Accounting Policies (Policies)

3 Months Ended

Mar. 31, 2018

Accounting Policies [Abstract]

New Accounting Pronouncements

New Accounting Pronouncements: From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board ("FASB") or other standard setting bodies that are adopted by Peoples as of the required effective dates.

Accounting Standards Update ("ASU") 2018-05 - Income Taxes (Topic 740): Amendment to clarify situations where a registrant does not have the necessary information available, prepared, or analyzed in reasonable detail to complete the accounting under ASC 740 for certain income tax effects of the Tax Cuts and Jobs Act for the reporting period. As of December 31, 2017, Peoples partially completed the accounting for the tax effects of enactment of the Tax Cuts and Jobs Act; however, in certain cases, Peoples made reasonable estimates of the effects of a reduced federal corporate income tax rate on its existing deferred tax balances. In other cases, Peoples has not been able to make a reasonable estimate and continued to account for those items based on its existing accounting under ASC 740, and the provisions of the tax laws that were in effect immediately prior to enactment of the Tax Cuts and Jobs Act. In all cases, Peoples will continue to make and refine its calculations during the one-year re-measurement period as additional analysis is completed. In addition, these estimates may be affected as Peoples gains a more thorough understanding of the new tax reform legislation.

ASU 2018-04 - Investments - Debt Securities (Topic 320) and Regulated Operations (Topic 980): The amendment in this ASU adds, amends and supersedes various paragraphs that contain SEC guidance in ASC 320, Investments-Debt Securities and ASC 980, Regulated Operations. The amendments in this ASU are effective when a registrant adopts ASU 2016-01, which for Peoples, was January 1, 2018. This amendment is not expected to have an impact on Peoples' consolidated financial statements.

ASU 2018-02 - Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. Peoples early adopted ASU 2018-02, reclassifying income tax effects of the Tax Cuts and Jobs Act of $0.9 million from accumulated other comprehensive loss to retained earnings as of December 31, 2017.

ASU 2017-12 - Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities. The amendments in this ASU better align an entity’s risk management activities and financial reporting for hedging relationships through changes to both the designation and measurement guidance for qualifying hedging relationships, and the presentation of hedge results. To meet that objective, the amendments expand and refine hedge accounting for both nonfinancial and financial risk components, and align the recognition and presentation of the effects of the hedging instrument and the hedged item in the financial statements. The amendments will be effective for interim and annual reporting periods beginning after December 15, 2018 (effective January 1, 2019 for Peoples). Peoples will adopt this new accounting guidance as required, and it is not expected to have a material impact on Peoples' consolidated financial statements.

ASU 2016-13 - Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. This accounting guidance replaces the current “incurred loss” model for recognizing credit losses with an “expected loss” model, referred to as the Current Expected Credit Loss (“CECL”) model. Under the CECL model, Peoples will be required to present certain financial assets carried at amortized cost, such as loans held-for-investment and held-to-maturity debt securities, at the net amount expected to be collected.

The measurement of expected credit losses is to be based on information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. This measurement will take place at the time the financial asset is first added to the balance sheet and periodically thereafter. This differs significantly from the “incurred loss” model required under current US GAAP, which delays recognition until it is probable a loss has been incurred. Accordingly, Peoples expects that the adoption of the CECL model will materially affect how the allowance for loan losses is determined and could require significant increases to the allowance for loan losses. Moreover, the CECL model may create more volatility in the level of Peoples' allowance for loan losses. If required to materially increase the level of allowance for loan losses for any reason, such increase could adversely affect Peoples' business, financial condition and results of operations.

The new CECL standard will become effective for interim and annual reporting periods beginning after December 15, 2019 (effective January 1, 2020 for Peoples). Peoples is currently evaluating the impact that the CECL model will have on Peoples' financial statements and expects to recognize a one-time cumulative-effect adjustment to the allowance for loan loss provision as of the beginning of the first reporting period in which the new standard is effective, consistent with regulatory expectations set forth in interagency guidance issued at the end of 2016. Peoples has not yet determined the magnitude of any such one-time cumulative adjustment or of the overall impact of the new standard on Peoples' financial condition or results of operations.

ASU 2016-02 - Leases (Topic 842): This ASU was issued to improve the financial reporting of leasing activities and provide a faithful representation of leasing transactions and improve understanding and comparability of a lessee's financial statements. Under the new accounting guidance, a lessee will be required to recognize assets and liabilities for leases with lease terms of more than 12 months. This ASU will require both finance and operating leases to be recognized on the balance sheet. This ASU will affect all companies and organizations that lease real estate. The FASB issued an update in January 2018 (ASU 2018-01) providing an optional transition practical expedient to not evaluate under Topic 842 land easements that exist or expired before the entity's adoption of Topic 842. This ASU will become effective for interim and annual reporting periods beginning after December 15, 2018 (effective January 1, 2019 for Peoples). Peoples will adopt this new accounting guidance as required, and it is not expected to have a material impact on Peoples' consolidated financial statements.

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Fair Value of Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2018

Fair Value Disclosures [Abstract]

Assets Measured at Fair Value on a Recurring Basis

	Recurring Fair Value Measurements at Reporting Date
	March 31, 2018						December 31, 2017
(Dollars in thousands)	Level 1		Level 2		Level 3		Level 1		Level 2		Level 3
Assets:
Securities available-for-sale:
Obligations of:
States and political subdivisions	$	—	$	97,205	$	—	$	—	$	101,569	$	—
Residential mortgage-backed securities	—		681,746		—		—		673,664		—
Commercial mortgage-backed securities	—		6,864		—		—		6,976		—
Bank-issued trust preferred securities	—		5,095		—		—		5,129		—
Equity securities (a)	—		—		—		7,694		155
Total available-for-sale securities	—		790,910		—		7,694		787,493		—
Securities held-to-maturity:
Obligations of:
States and political subdivisions	—		4,300		—		—		4,417		—
Residential mortgage-backed securities	—		30,978		—		—		32,227		—
Commercial mortgage-backed securities	—		4,162		—		—		4,569		—
Total held-to-maturity securities	—		39,440		—		—		41,213		—
Equity securities (a)	7,311		160		—		—		—		—
Derivative assets (b)	—		6,633		—		—		4,594		—
Liabilities:
Derivative liabilities (c)	$	—	$	3,870	$	—	$	—	$	3,241	$	—

Fair Values of Financial Assets and Liabilities on Balance Sheets

	Fair Value Measurements of Other Financial Instruments
(Dollars in thousands)	Fair Value Hierarchy Level	March 31, 2018				December 31, 2017
		Carrying Amount		Fair Value		Carrying Amount		Fair Value
Assets:
Cash and cash equivalents	1	$	72,629	$	72,629	$	72,194	$	72,194
Other investment securities:
FHLB stock	2	28,132		28,132		28,132		28,132
FRB stock	2	10,179		10,179		10,179		10,179
Non-qualified deferred comp (a)	2	914		914		—		—
FHLMC stock	2	60		60		60		60
Total other investment securities		39,285		39,285		38,371		38,371
Loans	3	2,383,530		2,297,373		2,338,344		2,274,194
Bank owned life insurance (BOLI)	3	62,644		62,644		62,176		62,176
Bank premises and equipment, net	3	56,247		56,247		52,510		52,510
Servicing rights (b)	3	2,303		2,303		2,305		2,305
Liabilities:
Deposits	2	$	2,813,181	$	2,809,738	$	2,730,330	$	2,730,071
Short-term borrowings	2	203,475		203,494		209,491		209,628
Long-term borrowings	2	123,481		119,817		144,019		142,108

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Investment Securities (Tables)

3 Months Ended

Mar. 31, 2018

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
March 31, 2018
Obligations of:
States and political subdivisions	$	96,730	$	1,052	$	(577	)	$	97,205
Residential mortgage-backed securities	699,788		2,195		(20,237		)	681,746
Commercial mortgage-backed securities	6,974		—		(110		)	6,864
Bank-issued trust preferred securities	5,197		116		(218		)	5,095
Total available-for-sale securities	$	808,689	$	3,363	$	(21,142	)	$	790,910
December 31, 2017
Obligations of:
States and political subdivisions	100,039		1,786		(256		)	101,569
Residential mortgage-backed securities	684,100		2,582		(13,018		)	673,664
Commercial mortgage-backed securities	7,004		11		(39		)	6,976
Bank-issued trust preferred securities	5,195		141		(207		)	5,129
Equity securities (a)	1,394		6,520		(65		)	7,849
Total available-for-sale securities	$	797,732	$	11,040	$	(13,585	)	$	795,187

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 March 31 were as follows:

	Three Months Ended
	March 31,
(Dollars in thousands)	2018		2017
Gross gains realized	$	2	$	340
Gross losses realized	1		—
Net gain (loss) realized	$	1	$	340

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
March 31, 2018
Obligations of:
States and political subdivisions	$	26,370	$	306	37	$	5,095	$	271	2	$	31,465	$	577
Residential mortgage-backed securities	321,636		7,396		95	279,802		12,841		86	601,438		20,237
Commercial mortgage-backed securities	5,609		93		2	1,256		17		1	6,865		110
Bank-issued trust preferred securities	—		—		—	2,782		218		3	2,782		218
Total	$	353,615	$	7,795	134	$	288,935	$	13,347	92	$	642,550	$	21,142
December 31, 2017
Obligations of:
States and political subdivisions	$	16,985	$	89	18	$	5,308	$	167	1	$	22,293	$	256
Residential mortgage-backed securities	274,998		3,462		77	291,812		9,556		88	566,810		13,018
Commercial mortgage-backed securities	2,487		23		1	1,274		16		1	3,761		39
Bank-issued trust preferred securities	—		—		—	2,792		207		3	2,792		207
Equity securities (a)	276		1		1	112		64		1	388		65
Total	$	294,746	$	3,575	97	$	301,298	$	10,010	94	$	596,044	$	13,585

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
March 31, 2018
Obligations of:
States and political subdivisions	$	3,807	$	493	$	—		$	4,300
Residential mortgage-backed securities	31,590		192		(804		)	30,978
Commercial mortgage-backed securities	4,254		—		(92		)	4,162
Total held-to-maturity securities	$	39,651	$	685	$	(896	)	$	39,440
December 31, 2017
Obligations of:
States and political subdivisions	$	3,810	$	607	$	—		$	4,417
Residential mortgage-backed securities	32,487		269		(529		)	32,227
Commercial mortgage-backed securities	4,631		—		(62		)	4,569
Total held-to-maturity securities	$	40,928	$	876	$	(591	)	$	41,213

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 March 31, 2018.  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.  

(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	$	1,294		$	10,503		$	30,295		$	54,638		$	96,730
Residential mortgage-backed securities	439			14,398			40,311			644,640			699,788
Commercial mortgage-backed securities	—			5,701			—			1,273			6,974
Bank-issued trust preferred securities	—			—			2,197			3,000			5,197
Total available-for-sale securities	$	1,733		$	30,602		$	72,803		$	703,551		$	808,689
Fair value
Obligations of:
States and political subdivisions	$	1,301		$	10,492		$	30,332		$	55,080		$	97,205
Residential mortgage-backed securities	433			14,140			39,654			627,519			681,746
Commercial mortgage-backed securities	—			5,608			—			1,256			6,864
Bank-issued trust preferred securities	—			—			2,313			2,782			5,095
Total available-for-sale securities	$	1,734		$	30,240		$	72,299		$	686,637		$	790,910
Total weighted-average yield	2.77		%	2.52		%	3.15		%	2.86		%	2.88		%

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 March 31, 2018.  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. 

(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	$	—		$	312		$	2,981		$	514		$	3,807
Residential mortgage-backed securities	—			439			6,336			24,815			31,590
Commercial mortgage-backed securities	—			—			—			4,254			4,254
Total held-to-maturity securities	$	—		$	751		$	9,317		$	29,583		$	39,651
Fair value
Obligations of:
States and political subdivisions	$	—		$	312		$	3,459		$	529		$	4,300
Residential mortgage-backed securities	—			430			6,315			24,233			30,978
Commercial mortgage-backed securities	—			—			—			4,162			4,162
Total held-to-maturity securities	$	—		$	742		$	9,774		$	28,924		$	39,440
Total weighted-average yield	—		%	3.16		%	2.79		%	3.53		%	3.35		%

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
March 31, 2018
Residential mortgage-backed securities	$	5,774	$	48	4	$	11,729	$	756	3	$	17,503	$	804
Commercial mortgage-backed securities	—		—		—	4,162		92		1	4,162		92
Total	$	5,774	$	48	4	$	15,891	$	848	4	$	21,665	$	896
December 31, 2017
Residential mortgage-backed securities	$	1,476	$	4	2	$	12,098	$	525	3	$	13,574	$	529
Commercial mortgage-backed securities	—		—		—	4,569		62		1	4,569		62
Total	$	1,476	$	4	2	$	16,667	$	587	4	$	18,143	$	591

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Loans (Tables)

3 Months Ended

Mar. 31, 2018

Financing Receivable, Allowance for Credit Losses [Line Items]

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. 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 major classifications of loan balances (in each case, net of deferred fees and costs) excluding loans held for sale, were as follows:

(Dollars in thousands)	March 31, 2018		December 31, 2017
Originated loans:
Commercial real estate, construction	$	99,757	$	107,118
Commercial real estate, other	627,932		595,447
Commercial real estate	727,689		702,565
Commercial and industrial	455,243		438,051
Residential real estate	302,890		304,523
Home equity lines of credit	87,722		88,902
Consumer, indirect	347,607		340,390
Consumer, direct	67,386		67,010
Consumer	414,993		407,400
Deposit account overdrafts	543		849
Total originated loans	$	1,989,080	$	1,942,290
Acquired loans:
Commercial real estate, construction	$	8,054	$	8,319
Commercial real estate, other	156,115		165,120
Commercial real estate	164,169		173,439
Commercial and industrial	33,815		34,493
Residential real estate	194,063		184,864
Home equity lines of credit	20,008		20,575
Consumer, indirect	253		329
Consumer, direct	940		1,147
Consumer	1,193		1,476
Total acquired loans	$	413,248	$	414,847
Loans, net of deferred fees and costs	$	2,402,328	$	2,357,137

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 purchased credit impaired loans included in the loan balances above are summarized as follows:

(Dollars in thousands)	March 31, 2018		December 31, 2017
Commercial real estate, other	$	7,794	$	8,117
Commercial and industrial	718		767
Residential real estate	19,156		19,532
Consumer	27		33
Total outstanding balance	$	27,695	$	28,449
Net carrying amount	$	18,864	$	19,564

Changes in the accretable yield for purchased credit impaired loans for the three months ended March 31, 2018 were as follows:

	For the three moths ended
(Dollars in thousands)	March 31, 2018			March 31, 2017
Balance, December 31, 2017	$	6,704		$	7,132
Accretion	(412		)	(461		)
Balance, March 31, 2018	$	6,292		$	6,671

Peoples completes annual re-estimations of cash flows on acquired purchased credit impaired loans in August of each year. At the end of each quarter, Peoples evaluates factors to determine if a material change has occurred in acquired loans accounted for and if a re-estimation is needed. Factors evaluated to determine if a re-estimation is needed include changes in: risk ratings, maturity dates, charge-offs, payoffs, nonaccrual status and loans that have become past due.

Cash flows expected to be collected on purchased credit impaired loans are estimated 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 the principal expected to be collected. In re-forecasting 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 $486.5 million and $487.2 million at March 31, 2018 and December 31, 2017, respectively. Peoples also pledges commercial loans to secure borrowings with the FRB. The outstanding balances of these loans totaled $71.5 million and $74.0 million at March 31, 2018 and December 31, 2017, 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, 2018		December 31, 2017		March 31, 2018		December 31, 2017
Originated loans:
Commercial real estate, construction	$	732	$	754	$	—	$	—
Commercial real estate, other	6,673		6,877		—		—
Commercial real estate	7,405		7,631		—		—
Commercial and industrial	1,598		739		—		—
Residential real estate	3,666		3,546		298		548
Home equity lines of credit	507		550		29		50
Consumer, indirect	306		256		—		—
Consumer, direct	17		39		—		16
Consumer	323		295		—		16
Total originated loans	$	13,499	$	12,761	$	327	$	614
Acquired loans:
Commercial real estate, other	$	269	$	192	$	71	$	215
Commercial and industrial	141		259		—		45
Residential real estate	2,062		2,168		632		730
Home equity lines of credit	230		312		—		22
Consumer, direct	1		—		—		—
Total acquired loans	$	2,703	$	2,931	$	703	$	1,012
Total loans	$	16,202	$	15,692	$	1,030	$	1,626

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, 2018
Originated loans:
Commercial real estate, construction	$	—	$	—	$	732	$	732	$	99,025	$	99,757
Commercial real estate, other	596		—		6,512		7,108		620,824		627,932
Commercial real estate	596		—		7,244		7,840		719,849		727,689
Commercial and industrial	1,352		1,180		1,570		4,102		451,141		455,243
Residential real estate	4,220		1,107		1,778		7,105		295,785		302,890
Home equity lines of credit	111		122		337		570		87,152		87,722
Consumer, indirect	1,510		176		152		1,838		345,769		347,607
Consumer, direct	204		24		11		239		67,147		67,386
Consumer	1,714		200		163		2,077		412,916		414,993
Deposit account overdrafts	—		—		—		—		543		543
Total originated loans	$	7,993	$	2,609	$	11,092	$	21,694	$	1,967,386	$	1,989,080
Acquired loans:
Commercial real estate, construction	$	33	$	—	$	—	$	33	$	8,021	$	8,054
Commercial real estate, other	490		—		264		754		155,361		156,115
Commercial real estate	523		—		264		787		163,382		164,169
Commercial and industrial	—		—		105		105		33,710		33,815
Residential real estate	2,499		782		1,982		5,263		188,800		194,063
Home equity lines of credit	59		—		182		241		19,767		20,008
Consumer, indirect	4		—		—		4		249		253
Consumer, direct	16		2		—		18		922		940
Consumer	20		2		—		22		1,171		1,193
Total acquired loans	$	3,101	$	784	$	2,533	$	6,418	$	406,830	$	413,248
Total loans	$	11,094	$	3,393	$	13,625	$	28,112	$	2,374,216	$	2,402,328

	Loans Past Due								Current Loans		Total Loans
(Dollars in thousands)	30 - 59 days		60 - 89 days		90 + Days		Total
December 31, 2017
Originated loans:
Commercial real estate, construction	$	—	$	—	$	—	$	—	$	107,118	$	107,118
Commercial real estate, other	990		—		6,492		7,482		587,965		595,447
Commercial real estate	990		—		6,492		7,482		695,083		702,565
Commercial and industrial	1,423		92		706		2,221		435,830		438,051
Residential real estate	4,562		1,234		2,408		8,204		296,319		304,523
Home equity lines of credit	502		80		395		977		87,925		88,902
Consumer, indirect	2,153		648		105		2,906		337,484		340,390
Consumer, direct	417		46		48		511		66,499		67,010
Consumer	2,570		694		153		3,417		403,983		407,400
Deposit account overdrafts	—		—		—		—		849		849
Total originated loans	$	10,047	$	2,100	$	10,154	$	22,301	$	1,919,989	$	1,942,290
Acquired loans:
Commercial real estate, construction	$	—	$	—	$	—	$	—	$	8,319	$	8,319
Commercial real estate, other	775		948		312		2,035		163,085		165,120
Commercial real estate	775		948		312		2,035		171,404		173,439
Commercial and industrial	—		1		171		172		34,321		34,493
Residential real estate	4,656		1,391		1,910		7,957		176,907		184,864
Home equity lines of credit	126		—		301		427		20,148		20,575
Consumer, indirect	3		—		—		3		326		329
Consumer, direct	10		11		—		21		1,126		1,147
Consumer	13		11		—		24		1,452		1,476
Total acquired loans	$	5,570	$	2,351	$	2,694	$	10,615	$	404,232	$	414,847
Total loans	$	15,617	$	4,451	$	12,848	$	32,916	$	2,324,221	$	2,357,137

During the first three months of 2018, Peoples' delinquency trends improved compared to the balances at December 31, 2017, as total loans past due declined in both the originated and acquired loan portfolios.

Credit Quality Indicators

As discussed in Note 1 of the Notes to the Consolidated Financial Statements included in Peoples' 2017 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.

“Special Mention” (grade 5): Loans in this risk grade are the equivalent of the regulatory definition of “Other Assets Especially Mentioned.” Loans in this risk 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 a 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 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, classification of the loan 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 a 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 loans within Peoples' loan portfolio based upon the most recent analysis performed:

	Pass Rated (Grades 1 - 4)		Special Mention (Grade 5)		Substandard (Grade 6)		Doubtful (Grade 7)		Not Rated		Total Loans
(Dollars in thousands)
March 31, 2018
Originated loans:
Commercial real estate, construction	$	92,383	$	6,190	$	732	$	—	$	452	$	99,757
Commercial real estate, other	596,903		14,058		16,971		—		—		627,932
Commercial real estate	689,286		20,248		17,703		—		452		727,689
Commercial and industrial	404,591		46,477		4,175		—		—		455,243
Residential real estate	17,037		579		11,270		131		273,873		302,890
Home equity lines of credit	454		—		—		—		87,268		87,722
Consumer, indirect	51		6		—		—		347,550		347,607
Consumer, direct	37		—		—		—		67,349		67,386
Consumer	88		6		—		—		414,899		414,993
Deposit account overdrafts	—		—		—		—		543		543
Total originated loans	$	1,111,456	$	67,310	$	33,148	$	131	$	777,035	$	1,989,080
Acquired loans:
Commercial real estate, construction	$	8,003	$	—	$	51	$	—	$	—	$	8,054
Commercial real estate, other	144,647		3,440		7,918		110		—		156,115
Commercial real estate	152,650		3,440		7,969		110		—		164,169
Commercial and industrial	31,351		185		2,279		—		—		33,815
Residential real estate	11,633		647		1,024		—		180,759		194,063
Home equity lines of credit	44		—		—		—		19,964		20,008
Consumer, indirect	8		—		—		—		245		253
Consumer, direct	32		—		—		—		908		940
Consumer	40		—		—		—		1,153		1,193
Total acquired loans	$	195,718	$	4,272	$	11,272	$	110	$	201,876	$	413,248
Total loans	$	1,307,174	$	71,582	$	44,420	$	241	$	978,911	$	2,402,328

	Pass Rated (Grades 1 - 4)		Special Mention (Grade 5)		Substandard (Grade 6)		Doubtful (Grade 7)		Not Rated		Total Loans
(Dollars in thousands)
December 31, 2017
Originated loans:
Commercial real estate, construction	$	100,409	$	5,502	$	754	$	—	$	453	$	107,118
Commercial real estate, other	561,320		17,189		16,938		—		—		595,447
Commercial real estate	661,729		22,691		17,692		—		453		702,565
Commercial and industrial	420,477		13,062		4,512		—		—		438,051
Residential real estate	17,896		1,000		11,371		216		274,040		304,523
Home equity lines of credit	454		—		—		—		88,448		88,902
Consumer, indirect	55		8		—		—		340,327		340,390
Consumer, direct	33		—		—		—		66,977		67,010
Consumer	88		8		—		—		407,304		407,400
Deposit account overdrafts	—		—		—		—		849		849
Total originated loans	$	1,100,644	$	36,761	$	33,575	$	216	$	771,094	$	1,942,290
Acquired loans:
Commercial real estate, construction	$	8,267	$	—	$	52	$	—	$	—	$	8,319
Commercial real estate, other	149,486		6,527		9,107		—		—		165,120
Commercial real estate	157,753		6,527		9,159		—		—		173,439
Commercial and industrial	32,011		157		2,325		—		—		34,493
Residential real estate	12,543		593		1,105		—		170,623		184,864
Home equity lines of credit	124		—		—		—		20,451		20,575
Consumer, indirect	12		—		—		—		317		329
Consumer, direct	35		—		—		—		1,112		1,147
Consumer	47		—		—		—		1,429		1,476
Total acquired loans	$	202,478	$	7,277	$	12,589	$	—	$	192,503	$	414,847
Total loans	$	1,303,122	$	44,038	$	46,164	$	216	$	963,597	$	2,357,137

In the first three months of 2018, Peoples' classified loans, which are loans categorized as substandard or doubtful, declined compared to the balances at December 31, 2017 mostly due to loan payoffs.

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, 2018
Commercial real estate, construction	$	819	$	—	$	732	$	732	$	—	$	743	$	—
Commercial real estate, other	14,480		14		13,132		13,146		1		13,295		105
Commercial real estate	15,299		14		13,864		13,878		1		14,038		105
Commercial and industrial	2,429		1,699		557		2,256		224		1,890		15
Residential real estate	24,422		476		22,459		22,935		57		22,839		312
Home equity lines of credit	1,647		70		1,573		1,643		15		1,652		20
Consumer, indirect	301		74		231		305		20		285		5
Consumer, direct	76		53		23		76		39		77		1
Consumer	377		127		254		381		59		362		6
Total	$	44,174	$	2,386	$	38,707	$	41,093	$	356	$	40,781	$	458
December 31, 2017
Commercial real estate, construction	$	821	$	—	$	754	$	754	$	—	$	788	$	—
Commercial real estate, other	14,909		14		13,606		13,620		1		14,392		503
Commercial real estate	15,730		14		14,360		14,374		1		15,180		503
Commercial and industrial	1,690		951		572		1,523		199		1,668		65
Residential real estate	24,743		477		22,626		23,103		58		23,195		1,246
Home equity lines of credit	1,707		81		1,624		1,705		18		1,505		85
Consumer, indirect	273		70		206		276		26		184		20
Consumer, direct	87		56		28		84		37		79		7
Consumer	360		126		234		360		63		263		27
Total	$	44,230	$	1,649	$	39,416	$	41,065	$	339	$	41,811	$	1,926

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 (a)
(Dollars in thousands)	Number of Contracts	Pre-Modification		Post-Modification		Remaining Recorded Investment
March 31, 2018
Originated loans:
Residential real estate	2	$	193	$	193	$	193
Consumer, indirect	7	86		86		86
Consumer, direct	2	4		4		4
Consumer	9	90		90		90
Total originated loans	11	$	283	$	283	$	283
Acquired loans:
Commercial real estate, other	1	$	50	$	50	$	50
Residential real estate	2	269		269		269
Consumer, other	1	1		1		1
Total acquired loans	4	$	320	$	320	$	320
March 31, 2017
Originated loans:
Residential real estate	2	$	105	$	105	$	105
Home equity lines of credit	3	226		226		225
Consumer, indirect	4	80		80		80
Consumer, direct	2	9		9		9
Consumer	6	89		89		89
Total originated loans	11	$	420	$	420	$	419
Acquired loans:
Commercial real estate, other	2	$	271	$	271	$	271
Residential real estate	2	126		126		126
Home equity lines of credit	4	294		294		326
Consumer, direct	1	9		9		9
Total acquired loans	9	$	700	$	700	$	732
(a) 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.

The following table presents those acquired loans modified in a TDR during the year that subsequently defaulted (i.e., are 90 days or more past due following a modification) during the three months ended March 31:

	March 31, 2018					March 31, 2017
(Dollars in thousands)	Number of Contracts	Recorded Investment (a)		Impact on the Allowance for Loan Losses		Number of Contracts	Recorded Investment (a)		Impact on the Allowance for Loan Losses
Acquired loans:
Residential real estate	—	$	—	$	—	1	$	73	$	—
Total	—	$	—	$	—	1	$	73	$	—
(a) 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 loans that were modified as a TDR during the last twelve months that subsequently defaulted. Peoples had no 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 Indirect			Consumer Other			Deposit Account Overdrafts			Total
Balance, January 1, 2018	$	7,797		$	5,813		$	904		$	693		$	2,944		$	464		$	70		$	18,685
Charge-offs	(842		)	(31		)	(145		)	(37		)	(929		)	(110		)	(205		)	(2,299		)
Recoveries	15			—			26			7			134			69			70			321
Net (charge-offs)	(827		)	(31		)	(119		)	(30		)	(795		)	(41		)	(135		)	(1,978		)
Provision for (recovery of) loan losses	1,092			(513		)	301			27			885			50			141			1,983
Balance, March 31, 2018	$	8,062		$	5,269		$	1,086		$	690		$	3,034		$	473		$	76		$	18,690
Period-end amount allocated to:
Loans individually evaluated for impairment	$	1		$	224		$	57		$	15		$	20		$	39		$	—		$	356
Loans collectively evaluated for impairment	8,061			5,045			1,029			675			3,014			434			76			18,334
Ending balance	$	8,062		$	5,269		$	1,086		$	690		$	3,034		$	473		$	76		$	18,690
Balance, January 1, 2017	$	7,172		$	6,353		$	982		$	688		$	2,312		$	518		$	171		$	18,196
Charge-offs	—			(117		)	(108		)	(3		)	(483		)	(40		)	(349		)	(1,100		)
Recoveries	102			—			89			3			206			50			65			515
Net recoveries (charge-offs)	102			(117		)	(19		)	—			(277		)	10			(284		)	(585		)
(Recovery of) provision for loan losses	(208		)	298			182			(13		)	374			(90		)	224			767
Balance, March 31, 2017	$	7,066		$	6,534		$	1,145		$	675		$	2,409		$	438		$	111		$	18,378
Period-end amount allocated to:
Loans individually evaluated for impairment	$	462		$	449		$	139		$	16		$	24		$	2		$	—		$	1,092
Loans collectively evaluated for impairment	6,604			6,085			1,006			659			2,385			436			111			17,286
Ending balance	$	7,066		$	6,534		$	1,145		$	675		$	2,409		$	438		$	111		$	18,378

Allowance for Loan Losses for Acquired Loans

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 purchased 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.

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, 2018		March 31, 2017
Purchased credit impaired loans:
Balance, beginning of period	$	108	$	233
Recovery of loan losses	—		(143		)
Balance, March 31	$	108	$	90

During the first quarter of 2017, Peoples recorded a recovery of loan losses that was related to an acquired purchased credit impaired loan that was paid off during the quarter.

Schedule of Financing Receivables, Type

The major classifications of loan balances (in each case, net of deferred fees and costs) excluding loans held for sale, were as follows:

(Dollars in thousands)	March 31, 2018		December 31, 2017
Originated loans:
Commercial real estate, construction	$	99,757	$	107,118
Commercial real estate, other	627,932		595,447
Commercial real estate	727,689		702,565
Commercial and industrial	455,243		438,051
Residential real estate	302,890		304,523
Home equity lines of credit	87,722		88,902
Consumer, indirect	347,607		340,390
Consumer, direct	67,386		67,010
Consumer	414,993		407,400
Deposit account overdrafts	543		849
Total originated loans	$	1,989,080	$	1,942,290
Acquired loans:
Commercial real estate, construction	$	8,054	$	8,319
Commercial real estate, other	156,115		165,120
Commercial real estate	164,169		173,439
Commercial and industrial	33,815		34,493
Residential real estate	194,063		184,864
Home equity lines of credit	20,008		20,575
Consumer, indirect	253		329
Consumer, direct	940		1,147
Consumer	1,193		1,476
Total acquired loans	$	413,248	$	414,847
Loans, net of deferred fees and costs	$	2,402,328	$	2,357,137

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 purchased credit impaired loans included in the loan balances above are summarized as follows:

(Dollars in thousands)	March 31, 2018		December 31, 2017
Commercial real estate, other	$	7,794	$	8,117
Commercial and industrial	718		767
Residential real estate	19,156		19,532
Consumer	27		33
Total outstanding balance	$	27,695	$	28,449
Net carrying amount	$	18,864	$	19,564

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, 2018 were as follows:

	For the three moths ended
(Dollars in thousands)	March 31, 2018			March 31, 2017
Balance, December 31, 2017	$	6,704		$	7,132
Accretion	(412		)	(461		)
Balance, March 31, 2018	$	6,292		$	6,671

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, 2018		December 31, 2017		March 31, 2018		December 31, 2017
Originated loans:
Commercial real estate, construction	$	732	$	754	$	—	$	—
Commercial real estate, other	6,673		6,877		—		—
Commercial real estate	7,405		7,631		—		—
Commercial and industrial	1,598		739		—		—
Residential real estate	3,666		3,546		298		548
Home equity lines of credit	507		550		29		50
Consumer, indirect	306		256		—		—
Consumer, direct	17		39		—		16
Consumer	323		295		—		16
Total originated loans	$	13,499	$	12,761	$	327	$	614
Acquired loans:
Commercial real estate, other	$	269	$	192	$	71	$	215
Commercial and industrial	141		259		—		45
Residential real estate	2,062		2,168		632		730
Home equity lines of credit	230		312		—		22
Consumer, direct	1		—		—		—
Total acquired loans	$	2,703	$	2,931	$	703	$	1,012
Total loans	$	16,202	$	15,692	$	1,030	$	1,626

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, 2018
Originated loans:
Commercial real estate, construction	$	—	$	—	$	732	$	732	$	99,025	$	99,757
Commercial real estate, other	596		—		6,512		7,108		620,824		627,932
Commercial real estate	596		—		7,244		7,840		719,849		727,689
Commercial and industrial	1,352		1,180		1,570		4,102		451,141		455,243
Residential real estate	4,220		1,107		1,778		7,105		295,785		302,890
Home equity lines of credit	111		122		337		570		87,152		87,722
Consumer, indirect	1,510		176		152		1,838		345,769		347,607
Consumer, direct	204		24		11		239		67,147		67,386
Consumer	1,714		200		163		2,077		412,916		414,993
Deposit account overdrafts	—		—		—		—		543		543
Total originated loans	$	7,993	$	2,609	$	11,092	$	21,694	$	1,967,386	$	1,989,080
Acquired loans:
Commercial real estate, construction	$	33	$	—	$	—	$	33	$	8,021	$	8,054
Commercial real estate, other	490		—		264		754		155,361		156,115
Commercial real estate	523		—		264		787		163,382		164,169
Commercial and industrial	—		—		105		105		33,710		33,815
Residential real estate	2,499		782		1,982		5,263		188,800		194,063
Home equity lines of credit	59		—		182		241		19,767		20,008
Consumer, indirect	4		—		—		4		249		253
Consumer, direct	16		2		—		18		922		940
Consumer	20		2		—		22		1,171		1,193
Total acquired loans	$	3,101	$	784	$	2,533	$	6,418	$	406,830	$	413,248
Total loans	$	11,094	$	3,393	$	13,625	$	28,112	$	2,374,216	$	2,402,328

	Loans Past Due								Current Loans		Total Loans
(Dollars in thousands)	30 - 59 days		60 - 89 days		90 + Days		Total
December 31, 2017
Originated loans:
Commercial real estate, construction	$	—	$	—	$	—	$	—	$	107,118	$	107,118
Commercial real estate, other	990		—		6,492		7,482		587,965		595,447
Commercial real estate	990		—		6,492		7,482		695,083		702,565
Commercial and industrial	1,423		92		706		2,221		435,830		438,051
Residential real estate	4,562		1,234		2,408		8,204		296,319		304,523
Home equity lines of credit	502		80		395		977		87,925		88,902
Consumer, indirect	2,153		648		105		2,906		337,484		340,390
Consumer, direct	417		46		48		511		66,499		67,010
Consumer	2,570		694		153		3,417		403,983		407,400
Deposit account overdrafts	—		—		—		—		849		849
Total originated loans	$	10,047	$	2,100	$	10,154	$	22,301	$	1,919,989	$	1,942,290
Acquired loans:
Commercial real estate, construction	$	—	$	—	$	—	$	—	$	8,319	$	8,319
Commercial real estate, other	775		948		312		2,035		163,085		165,120
Commercial real estate	775		948		312		2,035		171,404		173,439
Commercial and industrial	—		1		171		172		34,321		34,493
Residential real estate	4,656		1,391		1,910		7,957		176,907		184,864
Home equity lines of credit	126		—		301		427		20,148		20,575
Consumer, indirect	3		—		—		3		326		329
Consumer, direct	10		11		—		21		1,126		1,147
Consumer	13		11		—		24		1,452		1,476
Total acquired loans	$	5,570	$	2,351	$	2,694	$	10,615	$	404,232	$	414,847
Total loans	$	15,617	$	4,451	$	12,848	$	32,916	$	2,324,221	$	2,357,137

Loans By Risk Category

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

	Pass Rated (Grades 1 - 4)		Special Mention (Grade 5)		Substandard (Grade 6)		Doubtful (Grade 7)		Not Rated		Total Loans
(Dollars in thousands)
March 31, 2018
Originated loans:
Commercial real estate, construction	$	92,383	$	6,190	$	732	$	—	$	452	$	99,757
Commercial real estate, other	596,903		14,058		16,971		—		—		627,932
Commercial real estate	689,286		20,248		17,703		—		452		727,689
Commercial and industrial	404,591		46,477		4,175		—		—		455,243
Residential real estate	17,037		579		11,270		131		273,873		302,890
Home equity lines of credit	454		—		—		—		87,268		87,722
Consumer, indirect	51		6		—		—		347,550		347,607
Consumer, direct	37		—		—		—		67,349		67,386
Consumer	88		6		—		—		414,899		414,993
Deposit account overdrafts	—		—		—		—		543		543
Total originated loans	$	1,111,456	$	67,310	$	33,148	$	131	$	777,035	$	1,989,080
Acquired loans:
Commercial real estate, construction	$	8,003	$	—	$	51	$	—	$	—	$	8,054
Commercial real estate, other	144,647		3,440		7,918		110		—		156,115
Commercial real estate	152,650		3,440		7,969		110		—		164,169
Commercial and industrial	31,351		185		2,279		—		—		33,815
Residential real estate	11,633		647		1,024		—		180,759		194,063
Home equity lines of credit	44		—		—		—		19,964		20,008
Consumer, indirect	8		—		—		—		245		253
Consumer, direct	32		—		—		—		908		940
Consumer	40		—		—		—		1,153		1,193
Total acquired loans	$	195,718	$	4,272	$	11,272	$	110	$	201,876	$	413,248
Total loans	$	1,307,174	$	71,582	$	44,420	$	241	$	978,911	$	2,402,328

	Pass Rated (Grades 1 - 4)		Special Mention (Grade 5)		Substandard (Grade 6)		Doubtful (Grade 7)		Not Rated		Total Loans
(Dollars in thousands)
December 31, 2017
Originated loans:
Commercial real estate, construction	$	100,409	$	5,502	$	754	$	—	$	453	$	107,118
Commercial real estate, other	561,320		17,189		16,938		—		—		595,447
Commercial real estate	661,729		22,691		17,692		—		453		702,565
Commercial and industrial	420,477		13,062		4,512		—		—		438,051
Residential real estate	17,896		1,000		11,371		216		274,040		304,523
Home equity lines of credit	454		—		—		—		88,448		88,902
Consumer, indirect	55		8		—		—		340,327		340,390
Consumer, direct	33		—		—		—		66,977		67,010
Consumer	88		8		—		—		407,304		407,400
Deposit account overdrafts	—		—		—		—		849		849
Total originated loans	$	1,100,644	$	36,761	$	33,575	$	216	$	771,094	$	1,942,290
Acquired loans:
Commercial real estate, construction	$	8,267	$	—	$	52	$	—	$	—	$	8,319
Commercial real estate, other	149,486		6,527		9,107		—		—		165,120
Commercial real estate	157,753		6,527		9,159		—		—		173,439
Commercial and industrial	32,011		157		2,325		—		—		34,493
Residential real estate	12,543		593		1,105		—		170,623		184,864
Home equity lines of credit	124		—		—		—		20,451		20,575
Consumer, indirect	12		—		—		—		317		329
Consumer, direct	35		—		—		—		1,112		1,147
Consumer	47		—		—		—		1,429		1,476
Total acquired loans	$	202,478	$	7,277	$	12,589	$	—	$	192,503	$	414,847
Total loans	$	1,303,122	$	44,038	$	46,164	$	216	$	963,597	$	2,357,137

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, 2018
Commercial real estate, construction	$	819	$	—	$	732	$	732	$	—	$	743	$	—
Commercial real estate, other	14,480		14		13,132		13,146		1		13,295		105
Commercial real estate	15,299		14		13,864		13,878		1		14,038		105
Commercial and industrial	2,429		1,699		557		2,256		224		1,890		15
Residential real estate	24,422		476		22,459		22,935		57		22,839		312
Home equity lines of credit	1,647		70		1,573		1,643		15		1,652		20
Consumer, indirect	301		74		231		305		20		285		5
Consumer, direct	76		53		23		76		39		77		1
Consumer	377		127		254		381		59		362		6
Total	$	44,174	$	2,386	$	38,707	$	41,093	$	356	$	40,781	$	458
December 31, 2017
Commercial real estate, construction	$	821	$	—	$	754	$	754	$	—	$	788	$	—
Commercial real estate, other	14,909		14		13,606		13,620		1		14,392		503
Commercial real estate	15,730		14		14,360		14,374		1		15,180		503
Commercial and industrial	1,690		951		572		1,523		199		1,668		65
Residential real estate	24,743		477		22,626		23,103		58		23,195		1,246
Home equity lines of credit	1,707		81		1,624		1,705		18		1,505		85
Consumer, indirect	273		70		206		276		26		184		20
Consumer, direct	87		56		28		84		37		79		7
Consumer	360		126		234		360		63		263		27
Total	$	44,230	$	1,649	$	39,416	$	41,065	$	339	$	41,811	$	1,926

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 (a)
(Dollars in thousands)	Number of Contracts	Pre-Modification		Post-Modification		Remaining Recorded Investment
March 31, 2018
Originated loans:
Residential real estate	2	$	193	$	193	$	193
Consumer, indirect	7	86		86		86
Consumer, direct	2	4		4		4
Consumer	9	90		90		90
Total originated loans	11	$	283	$	283	$	283
Acquired loans:
Commercial real estate, other	1	$	50	$	50	$	50
Residential real estate	2	269		269		269
Consumer, other	1	1		1		1
Total acquired loans	4	$	320	$	320	$	320
March 31, 2017
Originated loans:
Residential real estate	2	$	105	$	105	$	105
Home equity lines of credit	3	226		226		225
Consumer, indirect	4	80		80		80
Consumer, direct	2	9		9		9
Consumer	6	89		89		89
Total originated loans	11	$	420	$	420	$	419
Acquired loans:
Commercial real estate, other	2	$	271	$	271	$	271
Residential real estate	2	126		126		126
Home equity lines of credit	4	294		294		326
Consumer, direct	1	9		9		9
Total acquired loans	9	$	700	$	700	$	732
(a) 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

	March 31, 2018					March 31, 2017
(Dollars in thousands)	Number of Contracts	Recorded Investment (a)		Impact on the Allowance for Loan Losses		Number of Contracts	Recorded Investment (a)		Impact on the Allowance for Loan Losses
Acquired loans:
Residential real estate	—	$	—	$	—	1	$	73	$	—
Total	—	$	—	$	—	1	$	73	$	—
(a) 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.

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 Indirect			Consumer Other			Deposit Account Overdrafts			Total
Balance, January 1, 2018	$	7,797		$	5,813		$	904		$	693		$	2,944		$	464		$	70		$	18,685
Charge-offs	(842		)	(31		)	(145		)	(37		)	(929		)	(110		)	(205		)	(2,299		)
Recoveries	15			—			26			7			134			69			70			321
Net (charge-offs)	(827		)	(31		)	(119		)	(30		)	(795		)	(41		)	(135		)	(1,978		)
Provision for (recovery of) loan losses	1,092			(513		)	301			27			885			50			141			1,983
Balance, March 31, 2018	$	8,062		$	5,269		$	1,086		$	690		$	3,034		$	473		$	76		$	18,690
Period-end amount allocated to:
Loans individually evaluated for impairment	$	1		$	224		$	57		$	15		$	20		$	39		$	—		$	356
Loans collectively evaluated for impairment	8,061			5,045			1,029			675			3,014			434			76			18,334
Ending balance	$	8,062		$	5,269		$	1,086		$	690		$	3,034		$	473		$	76		$	18,690
Balance, January 1, 2017	$	7,172		$	6,353		$	982		$	688		$	2,312		$	518		$	171		$	18,196
Charge-offs	—			(117		)	(108		)	(3		)	(483		)	(40		)	(349		)	(1,100		)
Recoveries	102			—			89			3			206			50			65			515
Net recoveries (charge-offs)	102			(117		)	(19		)	—			(277		)	10			(284		)	(585		)
(Recovery of) provision for loan losses	(208		)	298			182			(13		)	374			(90		)	224			767
Balance, March 31, 2017	$	7,066		$	6,534		$	1,145		$	675		$	2,409		$	438		$	111		$	18,378
Period-end amount allocated to:
Loans individually evaluated for impairment	$	462		$	449		$	139		$	16		$	24		$	2		$	—		$	1,092
Loans collectively evaluated for impairment	6,604			6,085			1,006			659			2,385			436			111			17,286
Ending balance	$	7,066		$	6,534		$	1,145		$	675		$	2,409		$	438		$	111		$	18,378

Allowance for Loan Losses Acquired Loans [Table Text Block]

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, 2018		March 31, 2017
Purchased credit impaired loans:
Balance, beginning of period	$	108	$	233
Recovery of loan losses	—		(143		)
Balance, March 31	$	108	$	90

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Long-Term Borrowings (Tables)

3 Months Ended

Mar. 31, 2018

Debt Disclosure [Abstract]

Schedule of Long-term Debt Instruments

The following table summarizes Peoples' long-term borrowings:

	March 31, 2018					December 31, 2017
(Dollars in thousands)	Balance			Weighted- Average Rate		Balance			Weighted- Average Rate
FHLB putable, non-amortizing, fixed-rate advances	$	95,000		1.94	%	$	115,000		1.86	%
FHLB amortizing, fixed-rate advances	21,352			2.02	%	21,939			2.02	%
Junior subordinated debt securities	7,151			6.89	%	7,107			6.51	%
Unamortized debt issuance costs	(22		)	—	%	(27		)	—	%
Total long-term borrowings	$	123,481		2.24	%	$	144,019		2.11	%

Schedule of Maturities of Long-term Debt

The aggregate minimum annual retirements of long-term borrowings in future periods are as follows:

(Dollars in thousands)	Balance		Weighted-Average Rate
Nine months ending December 31, 2018	$	3,840	1.58	%
Year ending December 31, 2019	13,508		1.21	%
Year ending December 31, 2020	25,564		1.83	%
Year ending December 31, 2021	21,979		1.74	%
Year ending December 31, 2022	16,521		1.96	%
Thereafter	42,069		3.26	%
Total long-term borrowings	$	123,481	2.24	%

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Stockholders' Equity (Tables)

3 Months Ended

Mar. 31, 2018

Equity [Abstract]

Schedule of Preferred, Common and Treasury Stock

The following table details the progression in Peoples’ common shares and treasury stock during the three months ended March 31, 2018:

	Common Shares	Treasury Stock
Shares at December 31, 2017	18,952,385	702,449
Changes related to stock-based compensation awards:
Release of restricted common shares	—	28,387
Cancellation of restricted common shares	—	170
Exercise of stock appreciation rights	—	(102	)
Grant of restricted common shares	—	(86,876	)
Grant of common shares	—	(11,112	)
Changes related to deferred compensation plan for Boards of Directors:
Purchase of treasury stock	—	1,197
Reissuance of treasury stock	—	(73	)
Common shares issued under dividend reinvestment plan	4,453	—
Common shares issued under compensation plan for Boards of Directors	—	(3,600	)
Shares at March 31, 2018	18,956,838	630,440

Schedule of Accumulated Other Comprehensive (Loss) Income

The following table details the change in the components of Peoples’ accumulated other comprehensive income (loss) for the three months ended March 31, 2018:

(Dollars in thousands)	Unrealized Loss on Securities			Unrecognized Net Pension and Postretirement Costs			Unrealized Loss on Cash Flow Hedge		Accumulated Other Comprehensive Loss
Balance, December 31, 2017	(2,088		)	(4,256		)	1,129		(5,215		)
Reclassification adjustments to net income:
Realized gain on sale of securities, net of tax	(1		)	—			—		(1		)
Amounts reclassified out of accumulated other comprehensive loss income per ASU 2016-01	(5,020		)	—			—		(5,020		)
Other comprehensive (loss) income, net of reclassifications and tax	(6,935		)	20			1,089		(5,826		)
Balance, March 31, 2018	$	(14,044	)	$	(4,236	)	$	2,218	$	(16,062	)

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Employee Benefit Plans (Tables)

3 Months Ended

Mar. 31, 2018

Retirement Benefits [Abstract]

Schedule of Net Benefit Costs

The following tables detail the components of the net periodic cost for the plans:

	Pension Benefits
	Three Months Ended
	March 31,
(Dollars in thousands)	2018			2017
Interest cost	$	105		$	113
Expected return on plan assets	(147		)	(138		)
Amortization of net loss	28			25
Net periodic cost	$	(14	)	$	—

	Postretirement Benefits
	Three Months Ended
	March 31,
(Dollars in thousands)	2018			2017
Interest cost	$	1		$	1
Amortization of net gain	(2		)	(2		)
Net periodic cost	$	(1	)	$	(1	)

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Earnings Per Common Share (Tables)

3 Months Ended

Mar. 31, 2018

Earnings Per Share [Abstract]

Calculations of Basic and Diluted Earnings per Common Share

The calculations of basic and diluted earnings per common share were as follows:

	Three Months Ended
	March 31,
(Dollars in thousands, except per share data)	2018		2017
Distributed earnings allocated to common shareholders	$	4,716	$	3,604
Undistributed earnings allocated to common shareholders	6,962		5,162
Net earnings allocated to common shareholders	$	11,678	$	8,766
Weighted-average common shares outstanding	18,126,089		18,029,991
Effect of potentially dilutive common shares	129,946		162,966
Total weighted-average diluted common shares outstanding	18,256,035		18,192,957
Earnings per common share:
Basic	$	0.64	$	0.49
Diluted	$	0.64	$	0.48
Anti-dilutive shares excluded from calculation:
Restricted shares, stock options and stock appreciation rights	32		455

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Stock-Based Compensation (Tables)

3 Months Ended

Mar. 31, 2018

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Schedule of Stock Appreciation Rights Outstanding & Exercisable by Exercise Price

The following table summarizes the changes to Peoples' SARs for the three months ended March 31, 2018:

	Number of Common Shares Subject to SARs	Weighted- Average Exercise Price		Weighted-Average Remaining Contractual Life	Aggregate Intrinsic  Value
Outstanding at January 1	314	$	23.77
Exercised	314	23.77
Outstanding at March 31	—	$	—	0.0 years	$	—
Exercisable at March 31	—	$	—	0.0 years	$	—

Schedule of Restricted Shares Activity

The following table summarizes the changes to Peoples’ restricted common shares for the three months ended March 31, 2018:

	Time-Based Vesting			Performance-Based Vesting
	Number of Common Shares	Weighted-Average Grant Date Fair Value		Number of Common Shares	Weighted-Average Grant Date Fair Value
Outstanding at January 1	33,082	$	22.85	176,218	$	25.50
Awarded	2,000	35.32		84,876	35.43
Released	—	—		82,861	23.63
Forfeited	—	—		170	33.66
Outstanding at March 31	35,082	$	23.56	178,063	$	31.09

Summary of Stock-Based Compensation and Related Tax Benefit

The following table summarizes the amount of stock-based compensation expense and related tax benefit recognized for each period:

	Three Months Ended
	March 31,
(Dollars in thousands)	2018			2017
Total stock-based compensation expense	$	1,028		$	568
Recognized tax benefit	(216		)	(199		)
Net expense recognized	$	812		$	369

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Revenue (Tables)

3 Months Ended

Mar. 31, 2018

Revenue Recognition and Deferred Revenue [Abstract]

Disaggregation of Revenue [Table Text Block]

The following table details Peoples' revenue from contracts with customers for the three months ended March 31, 2018:

	Three Months Ended
(Dollars in thousands)	March 31, 2018
Insurance income:
Commission and fees from sale of insurance policies (a)	$	3,189
Fees related to third-party administration services (a)	119
Performance-based commissions (b)	1,347
Trust and investment income (a)	3,068
Electronic banking income:
Interchange income (a)	2,264
Promotional and usage income (a)	521
Deposit account service charges:
Ongoing maintenance fees for deposit accounts (a)	675
Transactional-based fees (b)	1,445
Commercial loan swap fees (b)	116
Other non-interest income transactional-based fees (b)	281
Total	$	13,025
Timing of revenue recognition:
Services transferred over time	$	9,836
Services transferred at a point in time	3,189
Total	$	13,025

Contract with Customer, Asset and Liability [Table Text Block]

The following table details the change in Peoples' contract liabilities for the period ended March 31, 2018:

	Contract Liabilities
(Dollars in thousands)
Balance, January 1, 2018 (a)	$	4,700
Additional deferred income	1,824
Recognition of income previously deferred	(2,215		)
Balance, March 31, 2018	$	4,309

Revenue From Contract With Customer Financial Statement Impact [Table Text Block]

The following table details the impact of the adoption of ASU 2014-09 to Peoples' consolidated statements of income and balance sheets, compared to amounts that would have been recognized under previous guidance:

	At or For the Three Months Ended
	March 31, 2018
(Dollars in thousands)	As Reported		Impact of ASC 606			Amounts Recognized Under Previous Guidance
Non-interest income:
Insurance income	$	4,655	$	(391	)	$	4,264
Liabilities:
Accrued expenses and other liabilities	37,977		2,746			35,231
Stockholders' equity:
Retained earnings	143,297		(2,746		)	146,043

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Summary of Significant Accounting Policies Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Income tax expense	$ 2,383	$ 3,852
Adjustments for New Accounting Pronouncement [Member]
Income tax expense			$ 900

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Fair Value of Financial Instruments (Assets Measured at Fair Value Recurring) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Mar. 31, 2018	Sep. 30, 2017
Recurring Basis
Unrealized Gain (Loss) on Investments	$ 6,500
Servicing Asset	2,305	$ 2,303
Cash and Cash Equivalents, Fair Value Disclosure	72,194	72,629
Available-for-sale securities	795,187	790,910
Held-to-maturity investment securities at fair value	41,213	39,440
Investment in Federal Home Loan Bank Stock, Fair Value Disclosure	28,132	28,132
Federal Reserve Bank Stock	10,179	10,179
Interest Rate Derivative Assets, at Fair Value	4,600	6,600
Interest Rate Derivative Liabilities, at Fair Value	3,200	3,900
Loans Receivable and Loans Held-for-sale, Fair Value Disclosure	2,274,194	2,297,373
Cash Surrender Value, Fair Value Disclosure	62,176	62,644	$ 62,644
Property, Plant, and Equipment, Fair Value Disclosure	52,510	56,247
Deposits, Fair Value Disclosure	2,730,071	2,809,738
Short-term Debt, Fair Value	209,628	203,494
Long-term Debt, Fair Value	142,108	119,817
Level 2
Recurring Basis
Held-to-maturity investment securities at fair value	41,213	39,440
Other Investments	38,371	39,285
States and political subdivisions
Recurring Basis
Available-for-sale securities	101,569	97,205
States and political subdivisions | Level 1
Recurring Basis
Held-to-maturity investment securities at fair value	0	0
States and political subdivisions | Level 2
Recurring Basis
Held-to-maturity investment securities at fair value	4,417	4,300
States and political subdivisions | Level 3
Recurring Basis
Held-to-maturity investment securities at fair value	0	0
Residential mortgage-backed securities
Recurring Basis
Available-for-sale securities	673,664	681,746
Residential mortgage-backed securities | Level 1
Recurring Basis
Held-to-maturity investment securities at fair value	0	0
Residential mortgage-backed securities | Level 2
Recurring Basis
Held-to-maturity investment securities at fair value	32,227	30,978
Residential mortgage-backed securities | Level 3
Recurring Basis
Held-to-maturity investment securities at fair value	0	0
Commercial mortgage-backed securities
Recurring Basis
Available-for-sale securities	6,976	6,864
Commercial mortgage-backed securities | Level 1
Recurring Basis
Held-to-maturity investment securities at fair value	0	0
Commercial mortgage-backed securities | Level 2
Recurring Basis
Held-to-maturity investment securities at fair value	4,569	4,162
Commercial mortgage-backed securities | Level 3
Recurring Basis
Held-to-maturity investment securities at fair value	0	0
Bank-issued trust preferred securities
Recurring Basis
Available-for-sale securities	5,129	5,095
Equity securities (a)
Recurring Basis
Available-for-sale securities	7,849
Other Investments	0	7,471
Recurring Basis [Member] | Level 1
Recurring Basis
Available-for-sale securities	7,694	0
Recurring Basis [Member] | Level 2
Recurring Basis
Available-for-sale securities	787,493	790,910
Investment in Federal Home Loan Bank Stock, Fair Value Disclosure	28,132	28,132
Federal Reserve Bank Stock	10,179	10,179
Interest Rate Derivative Assets, at Fair Value	4,594	6,633
Interest Rate Derivative Liabilities, at Fair Value	3,241	3,870
Recurring Basis [Member] | Level 3
Recurring Basis
Available-for-sale securities	0	0
Recurring Basis [Member] | States and political subdivisions | Level 1
Recurring Basis
Available-for-sale securities	0	0
Recurring Basis [Member] | States and political subdivisions | Level 2
Recurring Basis
Available-for-sale securities	101,569	97,205
Recurring Basis [Member] | States and political subdivisions | Level 3
Recurring Basis
Available-for-sale securities	0	0
Recurring Basis [Member] | Residential mortgage-backed securities | Level 1
Recurring Basis
Available-for-sale securities	0	0
Recurring Basis [Member] | Residential mortgage-backed securities | Level 2
Recurring Basis
Available-for-sale securities	673,664	681,746
Recurring Basis [Member] | Residential mortgage-backed securities | Level 3
Recurring Basis
Available-for-sale securities	0	0
Recurring Basis [Member] | Commercial mortgage-backed securities | Level 1
Recurring Basis
Available-for-sale securities	0	0
Recurring Basis [Member] | Commercial mortgage-backed securities | Level 2
Recurring Basis
Available-for-sale securities	6,976	6,864
Recurring Basis [Member] | Commercial mortgage-backed securities | Level 3
Recurring Basis
Available-for-sale securities	0	0
Recurring Basis [Member] | Bank-issued trust preferred securities | Level 1
Recurring Basis
Available-for-sale securities	0	0
Recurring Basis [Member] | Bank-issued trust preferred securities | Level 2
Recurring Basis
Available-for-sale securities	5,129	5,095
Recurring Basis [Member] | Bank-issued trust preferred securities | Level 3
Recurring Basis
Available-for-sale securities	0	0
Recurring Basis [Member] | Equity securities (a) | Level 1
Recurring Basis
Available-for-sale securities	7,694	0
Other Investments		7,311
Recurring Basis [Member] | Equity securities (a) | Level 2
Recurring Basis
Available-for-sale securities	155	0
Other Investments		160
Recurring Basis [Member] | Equity securities (a) | Level 3
Recurring Basis
Available-for-sale securities		0
Reported Value Measurement [Member]
Recurring Basis
Other Investments	38,371	39,285
Loans Receivable and Loans Held-for-sale, Fair Value Disclosure	2,338,344	2,383,530
Deposits, Fair Value Disclosure	2,730,330	2,813,181
Short-term Debt, Fair Value	209,491	203,475
Long-term Debt, Fair Value	$ 144,019	$ 123,481

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Fair Value of Financial Instruments (Assets Measured at Fair Value Nonrecurring) (Details) - USD ($)	3 Months Ended
	Mar. 31, 2018	Dec. 31, 2017
Nonrecurring Basis
Mortgages Held-for-sale, Fair Value Disclosure	$ 3,581,000	$ 2,510,000
Impaired loans, fair value	0	0
Other Real Estate, Foreclosed Assets, and Repossessed Assets	99,000	208,000
Nonrecurring Basis
Nonrecurring Basis
Losses on impaired loans charged through allowance for loan losses	20,000
Nonrecurring Basis | Level 2
Nonrecurring Basis
Impaired loans, aggregate outstanding principal balance	25,200,000
Nonrecurring Basis | Level 3
Nonrecurring Basis
Impaired loans, fair value	$ 20,386,000	$ 20,602,000

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Fair Value of Financial Instruments (Fair Values of Financial Assets and Liabilities on Balance Sheets) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Mar. 31, 2018	Sep. 30, 2017
Fair Value
Investment in Federal Home Loan Bank Stock, Fair Value Disclosure	$ 28,132	$ 28,132
Cash and Cash Equivalents, Fair Value Disclosure	72,194	72,629
Unrealized Gain (Loss) on Investments	6,500
Held-to-maturity Securities, Fair Value	41,213	39,440
Financial assets:
Bank premises and equipment, net	52,510	56,247
Bank owned life insurance	62,176	62,644	$ 62,644
Financial liabilities:
Federal Reserve Bank Stock	10,179	10,179
Loans Receivable and Loans Held-for-sale, Fair Value Disclosure	2,274,194	2,297,373
Servicing Asset	2,305	2,303
Deposits, Fair Value Disclosure	2,730,071	2,809,738
Short-term Debt, Fair Value	209,628	203,494
Long-term Debt, Fair Value	142,108	119,817
Carrying Amount
Financial liabilities:
Other Investments	38,371	39,285
Loans Receivable and Loans Held-for-sale, Fair Value Disclosure	2,338,344	2,383,530
Deposits, Fair Value Disclosure	2,730,330	2,813,181
Short-term Debt, Fair Value	209,491	203,475
Long-term Debt, Fair Value	144,019	123,481
Level 2
Fair Value
Held-to-maturity Securities, Fair Value	41,213	39,440
Financial liabilities:
Other Investments	38,371	39,285
Commercial mortgage-backed securities | Level 2
Fair Value
Held-to-maturity Securities, Fair Value	4,569	4,162
Commercial mortgage-backed securities | Level 1
Fair Value
Held-to-maturity Securities, Fair Value	0	0
Residential mortgage-backed securities | Level 2
Fair Value
Held-to-maturity Securities, Fair Value	32,227	30,978
Residential mortgage-backed securities | Level 1
Fair Value
Held-to-maturity Securities, Fair Value	0	0
States and political subdivisions | Level 2
Fair Value
Held-to-maturity Securities, Fair Value	4,417	4,300
States and political subdivisions | Level 1
Fair Value
Held-to-maturity Securities, Fair Value	0	0
Commercial mortgage-backed securities
Fair Value
Held-to-maturity Securities, Fair Value	4,569	4,162
Residential mortgage-backed securities
Fair Value
Held-to-maturity Securities, Fair Value	32,227	30,978
States and political subdivisions
Fair Value
Held-to-maturity Securities, Fair Value	4,417	4,300
Recurring Basis [Member] | Level 2
Fair Value
Investment in Federal Home Loan Bank Stock, Fair Value Disclosure	28,132	28,132
Financial liabilities:
Federal Reserve Bank Stock	10,179	10,179
Recurring Basis [Member] | Non-qualified deferred comp
Financial liabilities:
Other Investments		914
Recurring Basis [Member] | FHLMC stock
Financial liabilities:
Other Investments		$ 60
Recurring Basis [Member] | FHLMC stock | Level 2
Financial liabilities:
Other Investments	$ 60

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Investment Securities (Available-for-sale Securities) (Details) - USD ($)	Mar. 31, 2018	Dec. 31, 2017
Schedule of Available-for-sale Securities
Securities of a single issuer, other than US Treasury, government agencies and US government sponsored agencies exceeding 10% of Stockholders' Equity	$ 0
Amortized Cost	808,689,000	$ 797,732,000
Gross Unrealized Gains	3,363,000	11,040,000
Gross Unrealized Losses	(21,142,000)	(13,585,000)
Available-for-sale securities	790,910,000	795,187,000
States and political subdivisions
Schedule of Available-for-sale Securities
Amortized Cost	96,730,000	100,039,000
Gross Unrealized Gains	1,052,000	1,786,000
Gross Unrealized Losses	(577,000)	(256,000)
Available-for-sale securities	97,205,000	101,569,000
Residential mortgage-backed securities
Schedule of Available-for-sale Securities
Amortized Cost	699,788,000	684,100,000
Gross Unrealized Gains	2,195,000	2,582,000
Gross Unrealized Losses	(20,237,000)	(13,018,000)
Available-for-sale securities	681,746,000	673,664,000
Commercial mortgage-backed securities
Schedule of Available-for-sale Securities
Amortized Cost	6,974,000	7,004,000
Gross Unrealized Gains	0	11,000
Gross Unrealized Losses	(110,000)	(39,000)
Available-for-sale securities	6,864,000	6,976,000
Bank-issued trust preferred securities
Schedule of Available-for-sale Securities
Amortized Cost	5,197,000	5,195,000
Gross Unrealized Gains	116,000	141,000
Gross Unrealized Losses	(218,000)	(207,000)
Available-for-sale securities	$ 5,095,000	5,129,000
Equity securities (a)
Schedule of Available-for-sale Securities
Amortized Cost		1,394,000
Gross Unrealized Gains		6,520,000
Gross Unrealized Losses		(65,000)
Available-for-sale securities		$ 7,849,000

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Investment Securities (Available-for-sale Securities Gross Realized Gains and Losses) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Gross gains and gross losses realized from sales of available-for-sale securities:
Gross gains realized	$ 2	$ 340
Gross losses realized	1	0
Net gain (loss) realized	$ 1	$ 340

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Investment Securities (Available-for-sale Securities with Unrealized Loss) (Details) $ in Thousands	Mar. 31, 2018 USD ($) securities	Dec. 31, 2017 USD ($) securities
Available-for-sale securities that had an unrealized loss:
Less than 12 months, fair value	$ 353,615	$ 294,746
Less than 12 months, unrealized loss	$ 7,795	$ 3,575
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Less than One Year | securities	134	97
12 months or more, fair value	$ 288,935	$ 301,298
12 months or more, unrealized loss	$ 13,347	$ 10,010
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Greater than or Equal to One Year | securities	92	94
Total unrealized loss position, fair value	$ 642,550	$ 596,044
Total unrealized loss	21,142	13,585
States and political subdivisions
Available-for-sale securities that had an unrealized loss:
Less than 12 months, fair value	26,370	16,985
Less than 12 months, unrealized loss	$ 306	$ 89
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Less than One Year | securities	37	18
12 months or more, fair value	$ 5,095	$ 5,308
12 months or more, unrealized loss	$ 271	$ 167
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Greater than or Equal to One Year | securities	2	1
Total unrealized loss position, fair value	$ 31,465	$ 22,293
Total unrealized loss	577	256
Residential mortgage-backed securities
Available-for-sale securities that had an unrealized loss:
Less than 12 months, fair value	321,636	274,998
Less than 12 months, unrealized loss	$ 7,396	$ 3,462
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Less than One Year | securities	95	77
12 months or more, fair value	$ 279,802	$ 291,812
12 months or more, unrealized loss	$ 12,841	$ 9,556
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Greater than or Equal to One Year | securities	86	88
Total unrealized loss position, fair value	$ 601,438	$ 566,810
Total unrealized loss	20,237	13,018
Commercial mortgage-backed securities
Available-for-sale securities that had an unrealized loss:
Less than 12 months, fair value	5,609	2,487
Less than 12 months, unrealized loss	$ 93	$ 23
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Less than One Year | securities	2	1
12 months or more, fair value	$ 1,256	$ 1,274
12 months or more, unrealized loss	$ 17	$ 16
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Greater than or Equal to One Year | securities	1	1
Total unrealized loss position, fair value	$ 6,865	$ 3,761
Total unrealized loss	110	39
Bank-issued trust preferred securities
Available-for-sale securities that had an unrealized loss:
Less than 12 months, fair value	0	0
Less than 12 months, unrealized loss	$ 0	$ 0
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Less than One Year | securities	0	0
12 months or more, fair value	$ 2,782	$ 2,792
12 months or more, unrealized loss	$ 218	$ 207
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Greater than or Equal to One Year | securities	3	3
Total unrealized loss position, fair value	$ 2,782	$ 2,792
Total unrealized loss	$ 218	207
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | securities	3
Equity securities (a)
Available-for-sale securities that had an unrealized loss:
Less than 12 months, fair value		276
Less than 12 months, unrealized loss		$ 1
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Less than One Year | securities		1
12 months or more, fair value		$ 112
12 months or more, unrealized loss		$ 64
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Greater than or Equal to One Year | securities		1
Total unrealized loss position, fair value		$ 388
Total unrealized loss		$ 65
Mortgage-backed securities, issued by US government sponsored agencies
Available-for-sale securities that had an unrealized loss:
Percentage of mortgage-backed securities in unrealized loss position for more than 12 months	99.00%
Mortgage-backed securities, privately issued
Available-for-sale securities that had an unrealized loss:
Percentage of mortgage-backed securities in unrealized loss position for more than 12 months	1.00%
Number of privately issued mortgage-backed securities securities with book value less than 90% of fair value | securities	4
Fair value within book value	90.00%
Fair Value Less Than 90 Percent of Book Value [Member] | Mortgage-backed securities, privately issued
Available-for-sale securities that had an unrealized loss:
12 months or more, fair value	$ 300
Book value of privately issued mortgage-backed securities in unrealized loss position for more than 12 months	$ 500

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Investment Securities (Available-for-sale Securities by Maturities) (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Schedule of Available-for-sale Securities
Debt securities, maturing within 1 year, amortized cost	$ 1,733
Debt securities, maturing 1 to 5 years, amortized cost	30,602
Debt securities, maturing 5 to 10 years, amortized cost	72,803
Available-for-sale Securities, Debt Maturities, Rolling after Year Ten, Amortized Cost Basis	703,551
Amortized Cost	808,689	$ 797,732
Debt securities, maturing within 1 year, fair value	1,734
Debt securities, maturing 1 to 5 years, fair value	30,240
Debt securities, maturing 5 to 10 years, fair value	72,299
Available-for-sale Securities, Debt Maturities, Rolling after Year Ten, Fair Value	686,637
Available-for-sale investment securities, at fair value (amortized cost of $808,689 at March 31, 2018 and $797,732 at December 31, 2017) (a)	$ 790,910	795,187
Available-for-sale securities, maturing within 1 year, average yield	2.77%
Available-for-sale securities, maturing 1 to 5 years, average yield	2.52%
Available-for-sale securities, maturing 5 to 10 years, average yield	3.15%
Available-for-sale securities, maturing over 10 years, average yield	2.86%
Available-for-sale securities, total average yield	2.88%
States and political subdivisions
Schedule of Available-for-sale Securities
Debt securities, maturing within 1 year, amortized cost	$ 1,294
Debt securities, maturing 1 to 5 years, amortized cost	10,503
Debt securities, maturing 5 to 10 years, amortized cost	30,295
Available-for-sale Securities, Debt Maturities, Rolling after Year Ten, Amortized Cost Basis	54,638
Debt securities, total amortized cost	96,730
Amortized Cost	96,730	100,039
Debt securities, maturing within 1 year, fair value	1,301
Debt securities, maturing 1 to 5 years, fair value	10,492
Debt securities, maturing 5 to 10 years, fair value	30,332
Available-for-sale Securities, Debt Maturities, Rolling after Year Ten, Fair Value	55,080
Available-for-sale investment securities, at fair value (amortized cost of $808,689 at March 31, 2018 and $797,732 at December 31, 2017) (a)	97,205	101,569
Debt securities, total fair value	97,205
Residential mortgage-backed securities
Schedule of Available-for-sale Securities
Debt securities, maturing within 1 year, amortized cost	439
Debt securities, maturing 1 to 5 years, amortized cost	14,398
Debt securities, maturing 5 to 10 years, amortized cost	40,311
Available-for-sale Securities, Debt Maturities, Rolling after Year Ten, Amortized Cost Basis	644,640
Debt securities, total amortized cost	699,788
Amortized Cost	699,788	684,100
Debt securities, maturing within 1 year, fair value	433
Debt securities, maturing 1 to 5 years, fair value	14,140
Debt securities, maturing 5 to 10 years, fair value	39,654
Available-for-sale Securities, Debt Maturities, Rolling after Year Ten, Fair Value	627,519
Available-for-sale investment securities, at fair value (amortized cost of $808,689 at March 31, 2018 and $797,732 at December 31, 2017) (a)	681,746	673,664
Debt securities, total fair value	681,746
Commercial mortgage-backed securities
Schedule of Available-for-sale Securities
Debt securities, maturing within 1 year, amortized cost	0
Debt securities, maturing 1 to 5 years, amortized cost	5,701
Debt securities, maturing 5 to 10 years, amortized cost	0
Available-for-sale Securities, Debt Maturities, Rolling after Year Ten, Amortized Cost Basis	1,273
Debt securities, total amortized cost	6,974
Amortized Cost	6,974	7,004
Debt securities, maturing within 1 year, fair value	0
Debt securities, maturing 1 to 5 years, fair value	5,608
Debt securities, maturing 5 to 10 years, fair value	0
Available-for-sale Securities, Debt Maturities, Rolling after Year Ten, Fair Value	1,256
Available-for-sale investment securities, at fair value (amortized cost of $808,689 at March 31, 2018 and $797,732 at December 31, 2017) (a)	6,864	6,976
Debt securities, total fair value	6,864
Bank-issued trust preferred securities
Schedule of Available-for-sale Securities
Debt securities, maturing 5 to 10 years, amortized cost	2,197
Available-for-sale Securities, Other Maturities, Rolling after Year Ten, Amortized Cost Basis	3,000
Available-for-sale Securities, Other Maturities, Amortized Cost Basis	5,197
Amortized Cost	5,197	5,195
Debt securities, maturing 5 to 10 years, fair value	2,313
Available-for-sale Securities, Debt Maturities, Rolling after Year Ten, Fair Value	2,782
Available-for-sale investment securities, at fair value (amortized cost of $808,689 at March 31, 2018 and $797,732 at December 31, 2017) (a)	5,095	5,129
Debt securities, total fair value	$ 5,095
Equity securities (a)
Schedule of Available-for-sale Securities
Amortized Cost		1,394
Available-for-sale investment securities, at fair value (amortized cost of $808,689 at March 31, 2018 and $797,732 at December 31, 2017) (a)		$ 7,849

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Investment Securities (Held-to-maturity Securities) (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	$ 39,651	$ 40,928
Gross Unrealized Gains	685	876
Gross Unrealized Losses	(896)	(591)
Held-to-maturity investment securities at fair value	39,440	41,213
Commercial mortgage-backed securities
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	4,254
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(92)	(62)
Held-to-maturity investment securities at fair value	4,162	4,569
States and political subdivisions
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	3,807
Gross Unrealized Gains	493	607
Gross Unrealized Losses	0	0
Held-to-maturity investment securities at fair value	4,300	4,417
Residential mortgage-backed securities
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	31,590
Gross Unrealized Gains	192	269
Gross Unrealized Losses	(804)	(529)
Held-to-maturity investment securities at fair value	30,978	32,227
Commercial mortgage-backed securities | Commercial mortgage-backed securities
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost		4,631
Reported Value Measurement [Member] | Commercial mortgage-backed securities | Commercial mortgage-backed securities
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	4,254
Reported Value Measurement [Member] | States and political subdivisions | States and political subdivisions
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	3,807	3,810
Reported Value Measurement [Member] | Residential mortgage-backed securities | Residential mortgage-backed securities
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	$ 31,590	$ 32,487

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Investment Securities (Held-to-Maturity Securities Gross Realized Gains and Losses) (Details) - USD ($)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Investments, Debt and Equity Securities [Abstract]
Realized Gain (Loss) on Held-to-Maturity Securities	$ 0	$ 0

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Investment Securities (Held-to-maturity Securities with Unrealized Loss) (Details) $ in Thousands	Mar. 31, 2018 USD ($) securities	Dec. 31, 2017 USD ($) securities
Schedule of Held-to-maturity Securities [Line Items]
Less than 12 months, fair value	$ 5,774	$ 1,476
Less than 12 months, unrealized loss	$ 48	$ 4
Less than 12 months, no. of securities | securities	4	2
12 months or more, fair value	$ 15,891	$ 16,667
12 months or more, unrealized loss	$ 848	$ 587
12 months or more, no. of securities | securities	4	4
Total fair value	$ 21,665	$ 18,143
Total unrealized loss	896	591
States and political subdivisions
Schedule of Held-to-maturity Securities [Line Items]
Total unrealized loss	0	0
Residential mortgage-backed securities
Schedule of Held-to-maturity Securities [Line Items]
Less than 12 months, fair value	5,774	1,476
Less than 12 months, unrealized loss	$ 48	$ 4
Less than 12 months, no. of securities | securities	4	2
12 months or more, fair value	$ 11,729	$ 12,098
12 months or more, unrealized loss	$ 756	$ 525
12 months or more, no. of securities | securities	3	3
Total fair value	$ 17,503	$ 13,574
Total unrealized loss	804	529
Commercial mortgage-backed securities
Schedule of Held-to-maturity Securities [Line Items]
Less than 12 months, fair value	0	0
Less than 12 months, unrealized loss	$ 0	$ 0
Less than 12 months, no. of securities | securities	0	0
12 months or more, fair value	$ 4,162	$ 4,569
12 months or more, unrealized loss	$ 92	$ 62
12 months or more, no. of securities | securities	1	1
Total fair value	$ 4,162	$ 4,569
Total unrealized loss	$ 92	$ 62

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Investment Securities (Held-to-maturity Securities by Maturities) (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Schedule of Held-to-maturity Securities [Line Items]
Debt securities, maturing within 1 year, amortized cost	$ 0
Debt securities, maturing 1 to 5 years, amortized cost	751
Debt securities, maturing 5 to 10 years, amortized cost	9,317
Debt securities, maturing over 10 years, amortized cost	29,583
Amortized Cost	39,651	$ 40,928
Debt securities, maturing within 1 year, fair value	0
Debt securities, maturing 1 to 5 years, fair value	742
Debt securities, maturing 5 to 10 years, fair value	9,774
Debt securities, maturing over 10 years, fair value	28,924
Fair Value	$ 39,440	41,213
Held-to-maturity securities, maturing within 1 year, average yield	0.00%
Held-to-maturity securities, maturing 1 to 5 years, average yield	3.16%
Held-to-maturity securities, maturing 6 to 10 years, average yield	2.79%
Held-to-maturity securities, maturing over 10 years, average yield	3.53%
Held-to-maturity securities, total average yield	3.35%
States and political subdivisions
Schedule of Held-to-maturity Securities [Line Items]
Debt securities, maturing within 1 year, amortized cost	$ 0
Debt securities, maturing 1 to 5 years, amortized cost	312
Debt securities, maturing 5 to 10 years, amortized cost	2,981
Debt securities, maturing over 10 years, amortized cost	514
Amortized Cost	3,807
Debt securities, maturing within 1 year, fair value	0
Debt securities, maturing 1 to 5 years, fair value	312
Debt securities, maturing 5 to 10 years, fair value	3,459
Debt securities, maturing over 10 years, fair value	529
Fair Value	4,300	4,417
Residential mortgage-backed securities
Schedule of Held-to-maturity Securities [Line Items]
Debt securities, maturing within 1 year, amortized cost	0
Debt securities, maturing 1 to 5 years, amortized cost	439
Debt securities, maturing 5 to 10 years, amortized cost	6,336
Debt securities, maturing over 10 years, amortized cost	24,815
Amortized Cost	31,590
Debt securities, maturing within 1 year, fair value	0
Debt securities, maturing 1 to 5 years, fair value	430
Debt securities, maturing 5 to 10 years, fair value	6,315
Debt securities, maturing over 10 years, fair value	24,233
Fair Value	30,978	32,227
Commercial mortgage-backed securities
Schedule of Held-to-maturity Securities [Line Items]
Debt securities, maturing within 1 year, amortized cost	0
Debt securities, maturing 1 to 5 years, amortized cost	0
Debt securities, maturing 5 to 10 years, amortized cost	0
Debt securities, maturing over 10 years, amortized cost	4,254
Amortized Cost	4,254
Debt securities, maturing within 1 year, fair value	0
Debt securities, maturing 1 to 5 years, fair value	0
Debt securities, maturing 5 to 10 years, fair value	0
Debt securities, maturing over 10 years, fair value	4,162
Fair Value	$ 4,162	$ 4,569

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Investment Securities (Pledged Securities) (Details) - USD ($) $ in Millions	Mar. 31, 2018	Dec. 31, 2017
Investments, Debt and Equity Securities [Abstract]
Carrying value of available-for-sale securities pledged to secure public and trust department deposits and repurchase agreements	$ 551.1	$ 522.7
Carrying value of held-to-maturity securities pledged to secure public and trust department deposits and repurchase agreements	17.9	18.3
Carrying value of available-for-sale securities pledged to secure additional borrowing capacity at Federal Home Loan Bank and Federal Reserve Bank	5.0	6.7
Pledged Financial Instruments, Not Separately Reported, Held-To-Maturity Securities for Federal Home Loan Bank and Federal Reserve Bank	$ 19.0	$ 19.9

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Investment Securities Other Investments (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Other Investments Carrying Value [Line Items]
Investment in Federal Home Loan Bank Stock, Fair Value Disclosure	$ 28,132	$ 28,132
Federal Reserve Bank Stock	10,179	10,179
Other investment securities (a)	46,756	38,371
Other
Other Investments Carrying Value [Line Items]
Other Investments	974	60
Equity securities (a)
Other Investments Carrying Value [Line Items]
Other Investments	$ 7,471	$ 0

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Loans (Narrative) (Details) - USD ($)	Mar. 31, 2018	Dec. 31, 2017
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and leases receivable, impaired, commitment to lend	$ 0
Residential real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Pledged assets separately reported, loans pledged as collateral, at fair value	486,500,000	$ 487,200,000
Commercial and industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Pledged assets separately reported, loans pledged as collateral, at fair value	$ 71,500,000	$ 74,000,000

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Loans (Loan Balances By Classification) (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of deferred fees and costs	$ 2,402,328	$ 2,357,137
Total loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of deferred fees and costs	2,402,328	2,357,137
Originated Loan | Total loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of deferred fees and costs	1,989,080	1,942,290
Originated Loan | Commercial real estate, construction
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of deferred fees and costs	99,757	107,118
Originated Loan | Commercial real estate, other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of deferred fees and costs	727,689	702,565
Originated Loan | Commercial and industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of deferred fees and costs	455,243	438,051
Originated Loan | Residential real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of deferred fees and costs	302,890	304,523
Originated Loan | Home equity lines of credit
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of deferred fees and costs	87,722	88,902
Originated Loan | Consumer, indirect
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of deferred fees and costs	347,607	340,390
Originated Loan | Consumer, direct
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of deferred fees and costs	67,386	67,010
Originated Loan | Consumer, direct
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of deferred fees and costs	414,993	407,400
Originated Loan | Deposit account overdrafts
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of deferred fees and costs	543	849
Acquired Loans | Total loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of deferred fees and costs	413,248	414,847
Acquired Loans | Commercial real estate, construction
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of deferred fees and costs	8,054	8,319
Acquired Loans | Commercial real estate, other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of deferred fees and costs	164,169	173,439
Acquired Loans | Commercial and industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of deferred fees and costs	33,815	34,493
Acquired Loans | Residential real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of deferred fees and costs	194,063	184,864
Acquired Loans | Home equity lines of credit
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of deferred fees and costs	20,008	20,575
Acquired Loans | Consumer, indirect
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of deferred fees and costs	253	329
Acquired Loans | Consumer, direct
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of deferred fees and costs	940	1,147
Acquired Loans | Consumer, direct
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of deferred fees and costs	$ 1,193	$ 1,476

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Loans (Loans Acquired With Deterioration of Credit Quality) (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Purchased credit impaired loans
Carrying Amount	$ 18,864	$ 19,564
Total loans
Purchased credit impaired loans
Outstanding Balance	27,695	28,449
Commercial real estate
Purchased credit impaired loans
Outstanding Balance	7,794	8,117
Commercial and industrial
Purchased credit impaired loans
Outstanding Balance	718	767
Residential real estate
Purchased credit impaired loans
Outstanding Balance	19,156	19,532
Consumer, direct
Purchased credit impaired loans
Outstanding Balance	$ 27	$ 33

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Loans Accretable Yield Rollforward (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2018 USD ($)
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward]
Beginning balance	$ 6,704
Accretion	(412)
Ending balance	$ 6,292

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Loans (Nonaccrual and Past Due Loans) (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Accounts, Notes, Loans and Financing Receivable [Line Items]
Nonaccrual Loans	$ 16,202	$ 15,692
Loans 90 Days Past Due and Accruing	1,030	1,626
Originated Loan
Accounts, Notes, Loans and Financing Receivable [Line Items]
Nonaccrual Loans	13,499	12,761
Loans 90 Days Past Due and Accruing	327	614
Originated Loan | Commercial real estate, construction
Accounts, Notes, Loans and Financing Receivable [Line Items]
Nonaccrual Loans	732	754
Loans 90 Days Past Due and Accruing	0	0
Originated Loan | Commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Nonaccrual Loans	6,673	6,877
Loans 90 Days Past Due and Accruing	0	0
Originated Loan | Commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Nonaccrual Loans	7,405	7,631
Loans 90 Days Past Due and Accruing	0	0
Originated Loan | Commercial and industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Nonaccrual Loans	1,598	739
Loans 90 Days Past Due and Accruing	0	0
Originated Loan | Residential real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Nonaccrual Loans	3,666	3,546
Loans 90 Days Past Due and Accruing	298	548
Originated Loan | Home equity lines of credit
Accounts, Notes, Loans and Financing Receivable [Line Items]
Nonaccrual Loans	507	550
Loans 90 Days Past Due and Accruing	29	50
Originated Loan | Consumer, indirect
Accounts, Notes, Loans and Financing Receivable [Line Items]
Nonaccrual Loans	306	256
Loans 90 Days Past Due and Accruing	0	0
Originated Loan | Consumer, direct
Accounts, Notes, Loans and Financing Receivable [Line Items]
Nonaccrual Loans	17	39
Loans 90 Days Past Due and Accruing	0	16
Originated Loan | Consumer, direct
Accounts, Notes, Loans and Financing Receivable [Line Items]
Nonaccrual Loans	323	295
Loans 90 Days Past Due and Accruing	0	16
Acquired Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Nonaccrual Loans	2,703	2,931
Loans 90 Days Past Due and Accruing	703	1,012
Acquired Loans | Commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Nonaccrual Loans	269	192
Loans 90 Days Past Due and Accruing	71	215
Acquired Loans | Commercial and industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Nonaccrual Loans	141	259
Loans 90 Days Past Due and Accruing	0	45
Acquired Loans | Residential real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Nonaccrual Loans	2,062	2,168
Loans 90 Days Past Due and Accruing	632	730
Acquired Loans | Home equity lines of credit
Accounts, Notes, Loans and Financing Receivable [Line Items]
Nonaccrual Loans	230	312
Loans 90 Days Past Due and Accruing	0	22
Acquired Loans | Consumer, direct
Accounts, Notes, Loans and Financing Receivable [Line Items]
Nonaccrual Loans	1	0
Loans 90 Days Past Due and Accruing	$ 0	$ 0

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Loans (Aging Of The Recorded Investment In Past Due Loans And Leases) (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans	$ 2,402,328	$ 2,357,137
Total loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	28,112	32,916
Current Loans	2,374,216	2,324,221
Total Loans	2,402,328	2,357,137
Originated Loan | Commercial real estate, construction
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	732	0
Current Loans	99,025	107,118
Total Loans	99,757	107,118
Originated Loan | Commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	7,108	7,482
Current Loans	620,824	587,965
Total Loans	627,932	595,447
Originated Loan | Commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	7,840	7,482
Current Loans	719,849	695,083
Total Loans	727,689	702,565
Originated Loan | Commercial and industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	4,102	2,221
Current Loans	451,141	435,830
Total Loans	455,243	438,051
Originated Loan | Residential real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	7,105	8,204
Current Loans	295,785	296,319
Total Loans	302,890	304,523
Originated Loan | Home equity lines of credit
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	570	977
Current Loans	87,152	87,925
Total Loans	87,722	88,902
Originated Loan | Consumer, indirect
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	1,838	2,906
Current Loans	345,769	337,484
Total Loans	347,607	340,390
Originated Loan | Consumer, direct
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	2,077	3,417
Current Loans	412,916	403,983
Total Loans	414,993	407,400
Originated Loan | Consumer, direct
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	239	511
Current Loans	67,147	66,499
Total Loans	67,386	67,010
Originated Loan | Deposit account overdrafts
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	0	0
Current Loans	543	849
Total Loans	543	849
Originated Loan | Total loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	21,694	22,301
Current Loans	1,967,386	1,919,989
Total Loans	1,989,080	1,942,290
Acquired Loans | Commercial real estate, construction
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	33	0
Current Loans	8,021	8,319
Total Loans	8,054	8,319
Acquired Loans | Commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	754	2,035
Current Loans	155,361	163,085
Total Loans	156,115	165,120
Acquired Loans | Commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	787	2,035
Current Loans	163,382	171,404
Total Loans	164,169	173,439
Acquired Loans | Commercial and industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	105	172
Current Loans	33,710	34,321
Total Loans	33,815	34,493
Acquired Loans | Residential real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	5,263	7,957
Current Loans	188,800	176,907
Total Loans	194,063	184,864
Acquired Loans | Home equity lines of credit
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	241	427
Current Loans	19,767	20,148
Total Loans	20,008	20,575
Acquired Loans | Consumer, indirect
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	4	3
Current Loans	249	326
Total Loans	253	329
Acquired Loans | Consumer, direct
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	22	24
Current Loans	1,171	1,452
Total Loans	1,193	1,476
Acquired Loans | Consumer, direct
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	18	21
Current Loans	922	1,126
Total Loans	940	1,147
Acquired Loans | Total loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	6,418	10,615
Current Loans	406,830	404,232
Total Loans	413,248	414,847
30 - 59 days | Total loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	11,094	15,617
30 - 59 days | Originated Loan | Commercial real estate, construction
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	0	0
30 - 59 days | Originated Loan | Commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	596	990
30 - 59 days | Originated Loan | Commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	596	990
30 - 59 days | Originated Loan | Commercial and industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	1,352	1,423
30 - 59 days | Originated Loan | Residential real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	4,220	4,562
30 - 59 days | Originated Loan | Home equity lines of credit
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	111	502
30 - 59 days | Originated Loan | Consumer, indirect
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	1,510	2,153
30 - 59 days | Originated Loan | Consumer, direct
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	1,714	2,570
30 - 59 days | Originated Loan | Consumer, direct
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	204	417
30 - 59 days | Originated Loan | Deposit account overdrafts
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	0	0
30 - 59 days | Originated Loan | Total loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	7,993	10,047
30 - 59 days | Acquired Loans | Commercial real estate, construction
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	33	0
30 - 59 days | Acquired Loans | Commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	490	775
30 - 59 days | Acquired Loans | Commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	523	775
30 - 59 days | Acquired Loans | Commercial and industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	0	0
30 - 59 days | Acquired Loans | Residential real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	2,499	4,656
30 - 59 days | Acquired Loans | Home equity lines of credit
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	59	126
30 - 59 days | Acquired Loans | Consumer, indirect
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	4	3
30 - 59 days | Acquired Loans | Consumer, direct
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	20	13
30 - 59 days | Acquired Loans | Consumer, direct
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	16	10
30 - 59 days | Acquired Loans | Total loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	3,101	5,570
60 - 89 days | Total loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	3,393	4,451
60 - 89 days | Originated Loan | Commercial real estate, construction
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	0	0
60 - 89 days | Originated Loan | Commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	0	0
60 - 89 days | Originated Loan | Commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	0	0
60 - 89 days | Originated Loan | Commercial and industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	1,180	92
60 - 89 days | Originated Loan | Residential real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	1,107	1,234
60 - 89 days | Originated Loan | Home equity lines of credit
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	122	80
60 - 89 days | Originated Loan | Consumer, indirect
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	176	648
60 - 89 days | Originated Loan | Consumer, direct
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	200	694
60 - 89 days | Originated Loan | Consumer, direct
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	24	46
60 - 89 days | Originated Loan | Deposit account overdrafts
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	0	0
60 - 89 days | Originated Loan | Total loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	2,609	2,100
60 - 89 days | Acquired Loans | Commercial real estate, construction
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	0	0
60 - 89 days | Acquired Loans | Commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	0	948
60 - 89 days | Acquired Loans | Commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	0	948
60 - 89 days | Acquired Loans | Commercial and industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	0	1
60 - 89 days | Acquired Loans | Residential real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	782	1,391
60 - 89 days | Acquired Loans | Home equity lines of credit
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	0	0
60 - 89 days | Acquired Loans | Consumer, indirect
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	0	0
60 - 89 days | Acquired Loans | Consumer, direct
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	2	11
60 - 89 days | Acquired Loans | Consumer, direct
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	2	11
60 - 89 days | Acquired Loans | Total loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	784	2,351
90 Days | Total loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	13,625	12,848
90 Days | Originated Loan | Commercial real estate, construction
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	732	0
90 Days | Originated Loan | Commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	6,512	6,492
90 Days | Originated Loan | Commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	7,244	6,492
90 Days | Originated Loan | Commercial and industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	1,570	706
90 Days | Originated Loan | Residential real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	1,778	2,408
90 Days | Originated Loan | Home equity lines of credit
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	337	395
90 Days | Originated Loan | Consumer, indirect
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	152	105
90 Days | Originated Loan | Consumer, direct
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	163	153
90 Days | Originated Loan | Consumer, direct
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	11	48
90 Days | Originated Loan | Deposit account overdrafts
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	0	0
90 Days | Originated Loan | Total loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	11,092	10,154
90 Days | Acquired Loans | Commercial real estate, construction
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	0	0
90 Days | Acquired Loans | Commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	264	312
90 Days | Acquired Loans | Commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	264	312
90 Days | Acquired Loans | Commercial and industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	105	171
90 Days | Acquired Loans | Residential real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	1,982	1,910
90 Days | Acquired Loans | Home equity lines of credit
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	182	301
90 Days | Acquired Loans | Consumer, indirect
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	0	0
90 Days | Acquired Loans | Consumer, direct
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	0	0
90 Days | Acquired Loans | Consumer, direct
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	0	0
90 Days | Acquired Loans | Total loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	$ 2,533	$ 2,694

XML

Loans (Loans By Risk Category) (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of deferred fees and costs	$ 2,402,328	$ 2,357,137
Total Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of deferred fees and costs	2,402,328	2,357,137
Pass Rated (Grades 1 - 4) | Total Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of deferred fees and costs	1,307,174	1,303,122
Special Mention (Grade 5) | Total Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of deferred fees and costs	71,582	44,038
Substandard (Grade 6) | Total Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of deferred fees and costs	44,420	46,164
Doubtful (Grade 7) | Total Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of deferred fees and costs	241	216
Not Rated | Total Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of deferred fees and costs	978,911	963,597
Originated Loan | Commercial real estate, construction
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of deferred fees and costs	99,757	107,118
Originated Loan | Commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of deferred fees and costs	627,932	595,447
Originated Loan | Commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of deferred fees and costs	727,689	702,565
Originated Loan | Commercial and industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of deferred fees and costs	455,243	438,051
Originated Loan | Residential real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of deferred fees and costs	302,890	304,523
Originated Loan | Home equity lines of credit
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of deferred fees and costs	87,722	88,902
Originated Loan | Consumer, indirect
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of deferred fees and costs	347,607	340,390
Originated Loan | Consumer, direct
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of deferred fees and costs	414,993	407,400
Originated Loan | Consumer, direct
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of deferred fees and costs	67,386	67,010
Originated Loan | Deposit account overdrafts
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of deferred fees and costs	543	849
Originated Loan | Total Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of deferred fees and costs	1,989,080	1,942,290
Originated Loan | Pass Rated (Grades 1 - 4) | Commercial real estate, construction
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of deferred fees and costs	92,383	100,409
Originated Loan | Pass Rated (Grades 1 - 4) | Commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of deferred fees and costs	596,903	561,320
Originated Loan | Pass Rated (Grades 1 - 4) | Commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of deferred fees and costs	689,286	661,729
Originated Loan | Pass Rated (Grades 1 - 4) | Commercial and industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of deferred fees and costs	404,591	420,477
Originated Loan | Pass Rated (Grades 1 - 4) | Residential real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of deferred fees and costs	17,037	17,896
Originated Loan | Pass Rated (Grades 1 - 4) | Home equity lines of credit
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of deferred fees and costs	454	454
Originated Loan | Pass Rated (Grades 1 - 4) | Consumer, indirect
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of deferred fees and costs	51	55
Originated Loan | Pass Rated (Grades 1 - 4) | Consumer, direct
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of deferred fees and costs	88	88
Originated Loan | Pass Rated (Grades 1 - 4) | Consumer, direct
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of deferred fees and costs	37	33
Originated Loan | Pass Rated (Grades 1 - 4) | Deposit account overdrafts
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of deferred fees and costs	0	0
Originated Loan | Pass Rated (Grades 1 - 4) | Total Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of deferred fees and costs	1,111,456	1,100,644
Originated Loan | Special Mention (Grade 5) | Commercial real estate, construction
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of deferred fees and costs	6,190	5,502
Originated Loan | Special Mention (Grade 5) | Commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of deferred fees and costs	14,058	17,189
Originated Loan | Special Mention (Grade 5) | Commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of deferred fees and costs	20,248	22,691
Originated Loan | Special Mention (Grade 5) | Commercial and industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of deferred fees and costs	46,477	13,062
Originated Loan | Special Mention (Grade 5) | Residential real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of deferred fees and costs	579	1,000
Originated Loan | Special Mention (Grade 5) | Home equity lines of credit
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of deferred fees and costs	0	0
Originated Loan | Special Mention (Grade 5) | Consumer, indirect
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of deferred fees and costs	6	8
Originated Loan | Special Mention (Grade 5) | Consumer, direct
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of deferred fees and costs	6	8
Originated Loan | Special Mention (Grade 5) | Consumer, direct
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of deferred fees and costs	0	0
Originated Loan | Special Mention (Grade 5) | Deposit account overdrafts
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of deferred fees and costs	0	0
Originated Loan | Special Mention (Grade 5) | Total Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of deferred fees and costs	67,310	36,761
Originated Loan | Substandard (Grade 6) | Commercial real estate, construction
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of deferred fees and costs	732	754
Originated Loan | Substandard (Grade 6) | Commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of deferred fees and costs	16,971	16,938
Originated Loan | Substandard (Grade 6) | Commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of deferred fees and costs	17,703	17,692
Originated Loan | Substandard (Grade 6) | Commercial and industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of deferred fees and costs	4,175	4,512
Originated Loan | Substandard (Grade 6) | Residential real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of deferred fees and costs	11,270	11,371
Originated Loan | Substandard (Grade 6) | Home equity lines of credit
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of deferred fees and costs	0	0
Originated Loan | Substandard (Grade 6) | Consumer, indirect
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of deferred fees and costs	0	0
Originated Loan | Substandard (Grade 6) | Consumer, direct
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of deferred fees and costs	0	0
Originated Loan | Substandard (Grade 6) | Consumer, direct
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of deferred fees and costs	0	0
Originated Loan | Substandard (Grade 6) | Deposit account overdrafts
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of deferred fees and costs	0	0
Originated Loan | Substandard (Grade 6) | Total Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of deferred fees and costs	33,148	33,575
Originated Loan | Doubtful (Grade 7) | Commercial real estate, construction
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of deferred fees and costs	0	0
Originated Loan | Doubtful (Grade 7) | Commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of deferred fees and costs	0	0
Originated Loan | Doubtful (Grade 7) | Commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of deferred fees and costs	0	0
Originated Loan | Doubtful (Grade 7) | Commercial and industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of deferred fees and costs	0	0
Originated Loan | Doubtful (Grade 7) | Residential real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of deferred fees and costs	131	216
Originated Loan | Doubtful (Grade 7) | Home equity lines of credit
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of deferred fees and costs	0	0
Originated Loan | Doubtful (Grade 7) | Consumer, indirect
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of deferred fees and costs	0	0
Originated Loan | Doubtful (Grade 7) | Consumer, direct
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of deferred fees and costs	0	0
Originated Loan | Doubtful (Grade 7) | Consumer, direct
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of deferred fees and costs	0	0
Originated Loan | Doubtful (Grade 7) | Deposit account overdrafts
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of deferred fees and costs	0	0
Originated Loan | Doubtful (Grade 7) | Total Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of deferred fees and costs	131	216
Originated Loan | Not Rated | Commercial real estate, construction
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of deferred fees and costs	452	453
Originated Loan | Not Rated | Commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of deferred fees and costs	0	0
Originated Loan | Not Rated | Commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of deferred fees and costs	452	453
Originated Loan | Not Rated | Commercial and industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of deferred fees and costs	0	0
Originated Loan | Not Rated | Residential real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of deferred fees and costs	273,873	274,040
Originated Loan | Not Rated | Home equity lines of credit
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of deferred fees and costs	87,268	88,448
Originated Loan | Not Rated | Consumer, indirect
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of deferred fees and costs	347,550	340,327
Originated Loan | Not Rated | Consumer, direct
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of deferred fees and costs	414,899	407,304
Originated Loan | Not Rated | Consumer, direct
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of deferred fees and costs	67,349	66,977
Originated Loan | Not Rated | Deposit account overdrafts
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of deferred fees and costs	543	849
Originated Loan | Not Rated | Total Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of deferred fees and costs	777,035	771,094
Acquired Loans | Commercial real estate, construction
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of deferred fees and costs	8,054	8,319
Acquired Loans | Commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of deferred fees and costs	156,115	165,120
Acquired Loans | Commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of deferred fees and costs	164,169	173,439
Acquired Loans | Commercial and industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of deferred fees and costs	33,815	34,493
Acquired Loans | Residential real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of deferred fees and costs	194,063	184,864
Acquired Loans | Home equity lines of credit
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of deferred fees and costs	20,008	20,575
Acquired Loans | Consumer, indirect
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of deferred fees and costs	253	329
Acquired Loans | Consumer, direct
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of deferred fees and costs	1,193	1,476
Acquired Loans | Consumer, direct
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of deferred fees and costs	940	1,147
Acquired Loans | Total Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of deferred fees and costs	413,248	414,847
Acquired Loans | Pass Rated (Grades 1 - 4) | Commercial real estate, construction
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of deferred fees and costs	8,003	8,267
Acquired Loans | Pass Rated (Grades 1 - 4) | Commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of deferred fees and costs	144,647	149,486
Acquired Loans | Pass Rated (Grades 1 - 4) | Commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of deferred fees and costs	152,650	157,753
Acquired Loans | Pass Rated (Grades 1 - 4) | Commercial and industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of deferred fees and costs	31,351	32,011
Acquired Loans | Pass Rated (Grades 1 - 4) | Residential real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of deferred fees and costs	11,633	12,543
Acquired Loans | Pass Rated (Grades 1 - 4) | Home equity lines of credit
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of deferred fees and costs	44	124
Acquired Loans | Pass Rated (Grades 1 - 4) | Consumer, indirect
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of deferred fees and costs	8	12
Acquired Loans | Pass Rated (Grades 1 - 4) | Consumer, direct
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of deferred fees and costs	40	47
Acquired Loans | Pass Rated (Grades 1 - 4) | Consumer, direct
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of deferred fees and costs	32	35
Acquired Loans | Pass Rated (Grades 1 - 4) | Total Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of deferred fees and costs	195,718	202,478
Acquired Loans | Special Mention (Grade 5) | Commercial real estate, construction
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of deferred fees and costs	0	0
Acquired Loans | Special Mention (Grade 5) | Commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of deferred fees and costs	3,440	6,527
Acquired Loans | Special Mention (Grade 5) | Commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of deferred fees and costs	3,440	6,527
Acquired Loans | Special Mention (Grade 5) | Commercial and industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of deferred fees and costs	185	157
Acquired Loans | Special Mention (Grade 5) | Residential real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of deferred fees and costs	647	593
Acquired Loans | Special Mention (Grade 5) | Home equity lines of credit
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of deferred fees and costs	0	0
Acquired Loans | Special Mention (Grade 5) | Consumer, indirect
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of deferred fees and costs	0	0
Acquired Loans | Special Mention (Grade 5) | Consumer, direct
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of deferred fees and costs	0	0
Acquired Loans | Special Mention (Grade 5) | Consumer, direct
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of deferred fees and costs	0	0
Acquired Loans | Special Mention (Grade 5) | Total Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of deferred fees and costs	4,272	7,277
Acquired Loans | Substandard (Grade 6) | Commercial real estate, construction
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of deferred fees and costs	51	52
Acquired Loans | Substandard (Grade 6) | Commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of deferred fees and costs	7,918	9,107
Acquired Loans | Substandard (Grade 6) | Commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of deferred fees and costs	7,969	9,159
Acquired Loans | Substandard (Grade 6) | Commercial and industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of deferred fees and costs	2,279	2,325
Acquired Loans | Substandard (Grade 6) | Residential real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of deferred fees and costs	1,024	1,105
Acquired Loans | Substandard (Grade 6) | Home equity lines of credit
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of deferred fees and costs	0	0
Acquired Loans | Substandard (Grade 6) | Consumer, indirect
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of deferred fees and costs	0	0
Acquired Loans | Substandard (Grade 6) | Consumer, direct
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of deferred fees and costs	0	0
Acquired Loans | Substandard (Grade 6) | Consumer, direct
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of deferred fees and costs	0	0
Acquired Loans | Substandard (Grade 6) | Total Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of deferred fees and costs	11,272	12,589
Acquired Loans | Doubtful (Grade 7) | Commercial real estate, construction
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of deferred fees and costs	0	0
Acquired Loans | Doubtful (Grade 7) | Commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of deferred fees and costs	110	0
Acquired Loans | Doubtful (Grade 7) | Commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of deferred fees and costs	110	0
Acquired Loans | Doubtful (Grade 7) | Commercial and industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of deferred fees and costs	0	0
Acquired Loans | Doubtful (Grade 7) | Residential real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of deferred fees and costs	0	0
Acquired Loans | Doubtful (Grade 7) | Home equity lines of credit
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of deferred fees and costs	0	0
Acquired Loans | Doubtful (Grade 7) | Consumer, indirect
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of deferred fees and costs	0	0
Acquired Loans | Doubtful (Grade 7) | Consumer, direct
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of deferred fees and costs	0	0
Acquired Loans | Doubtful (Grade 7) | Consumer, direct
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of deferred fees and costs	0	0
Acquired Loans | Doubtful (Grade 7) | Total Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of deferred fees and costs	110	0
Acquired Loans | Not Rated | Commercial real estate, construction
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of deferred fees and costs	0	0
Acquired Loans | Not Rated | Commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of deferred fees and costs	0	0
Acquired Loans | Not Rated | Commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of deferred fees and costs	0	0
Acquired Loans | Not Rated | Commercial and industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of deferred fees and costs	0	0
Acquired Loans | Not Rated | Residential real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of deferred fees and costs	180,759	170,623
Acquired Loans | Not Rated | Home equity lines of credit
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of deferred fees and costs	19,964	20,451
Acquired Loans | Not Rated | Consumer, indirect
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of deferred fees and costs	245	317
Acquired Loans | Not Rated | Consumer, direct
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of deferred fees and costs	1,153	1,429
Acquired Loans | Not Rated | Consumer, direct
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of deferred fees and costs	908	1,112
Acquired Loans | Not Rated | Total Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of deferred fees and costs	$ 201,876	$ 192,503

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Loans (Schedule Of Impaired Loans) (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2018	Dec. 31, 2017
Total loans
Financing Receivable, Impaired [Line Items]
Unpaid Principal Balance	$ 44,174	$ 44,230
Recorded Investment With Allowance	2,386	1,649
Recorded Investment Without Allowance	38,707	39,416
Total Recorded Investment	41,093	41,065
Related Allowance	356	339
Average Recorded Investment	40,781	41,811
Interest Income Recognized	458	1,926
Commercial real estate, construction
Financing Receivable, Impaired [Line Items]
Unpaid Principal Balance	819	821
Recorded Investment With Allowance	0	0
Recorded Investment Without Allowance	732	754
Total Recorded Investment	732	754
Related Allowance	0	0
Average Recorded Investment	743	788
Interest Income Recognized	0	0
Commercial real estate
Financing Receivable, Impaired [Line Items]
Unpaid Principal Balance	14,480	14,909
Recorded Investment With Allowance	14	14
Recorded Investment Without Allowance	13,132	13,606
Total Recorded Investment	13,146	13,620
Related Allowance	1	1
Average Recorded Investment	13,295	14,392
Interest Income Recognized	105	503
Commercial real estate
Financing Receivable, Impaired [Line Items]
Unpaid Principal Balance	15,299	15,730
Recorded Investment With Allowance	14	14
Recorded Investment Without Allowance	13,864	14,360
Total Recorded Investment	13,878	14,374
Related Allowance	1	1
Average Recorded Investment	14,038	15,180
Interest Income Recognized	105	503
Commercial and industrial
Financing Receivable, Impaired [Line Items]
Unpaid Principal Balance	2,429	1,690
Recorded Investment With Allowance	1,699	951
Recorded Investment Without Allowance	557	572
Total Recorded Investment	2,256	1,523
Related Allowance	224	199
Average Recorded Investment	1,890	1,668
Interest Income Recognized	15	65
Residential real estate
Financing Receivable, Impaired [Line Items]
Unpaid Principal Balance	24,422	24,743
Recorded Investment With Allowance	476	477
Recorded Investment Without Allowance	22,459	22,626
Total Recorded Investment	22,935	23,103
Related Allowance	57	58
Average Recorded Investment	22,839	23,195
Interest Income Recognized	312	1,246
Home equity lines of credit
Financing Receivable, Impaired [Line Items]
Unpaid Principal Balance	1,647	1,707
Recorded Investment With Allowance	70	81
Recorded Investment Without Allowance	1,573	1,624
Total Recorded Investment	1,643	1,705
Related Allowance	15	18
Average Recorded Investment	1,652	1,505
Interest Income Recognized	20	85
Consumer, indirect
Financing Receivable, Impaired [Line Items]
Unpaid Principal Balance	301	273
Recorded Investment With Allowance	74	70
Recorded Investment Without Allowance	231	206
Total Recorded Investment	305	276
Related Allowance	20	26
Average Recorded Investment	285	184
Interest Income Recognized	5	20
Consumer, direct
Financing Receivable, Impaired [Line Items]
Unpaid Principal Balance	76	87
Recorded Investment With Allowance	53	56
Recorded Investment Without Allowance	23	28
Total Recorded Investment	76	84
Related Allowance	39	37
Average Recorded Investment	77	79
Interest Income Recognized	1	7
Consumer, direct
Financing Receivable, Impaired [Line Items]
Unpaid Principal Balance	377	360
Recorded Investment With Allowance	127	126
Recorded Investment Without Allowance	254	234
Total Recorded Investment	381	360
Related Allowance	59	63
Average Recorded Investment	362	263
Interest Income Recognized	$ 6	$ 27

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Loans (Troubled Debt Restructurings) (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2018 USD ($) contract	Mar. 31, 2017 USD ($) contract
Originated Loan
Financing Receivable, Modifications [Line Items]
Total Recorded Investment	$ 283	$ 419
Financing Receivable, Modifications, Number of Contracts | contract	11	11
Financing Receivable, Modifications, Pre-Modification Recorded Investment	$ 283	$ 420
Financing Receivable, Modifications, Post-Modification Recorded Investment	283	420
Originated Loan | Residential real estate
Financing Receivable, Modifications [Line Items]
Total Recorded Investment	$ 193	$ 105
Financing Receivable, Modifications, Number of Contracts | contract	2	2
Financing Receivable, Modifications, Pre-Modification Recorded Investment	$ 193	$ 105
Financing Receivable, Modifications, Post-Modification Recorded Investment	193	105
Originated Loan | Home equity lines of credit
Financing Receivable, Modifications [Line Items]
Total Recorded Investment		$ 225
Financing Receivable, Modifications, Number of Contracts | contract		3
Financing Receivable, Modifications, Pre-Modification Recorded Investment		$ 226
Financing Receivable, Modifications, Post-Modification Recorded Investment		226
Originated Loan | Consumer, indirect
Financing Receivable, Modifications [Line Items]
Total Recorded Investment	$ 86	$ 80
Financing Receivable, Modifications, Number of Contracts | contract	7	4
Financing Receivable, Modifications, Pre-Modification Recorded Investment	$ 86	$ 80
Financing Receivable, Modifications, Post-Modification Recorded Investment	86	80
Originated Loan | Consumer, direct
Financing Receivable, Modifications [Line Items]
Total Recorded Investment	$ 4	$ 9
Financing Receivable, Modifications, Number of Contracts | contract	2	2
Financing Receivable, Modifications, Pre-Modification Recorded Investment	$ 4	$ 9
Financing Receivable, Modifications, Post-Modification Recorded Investment	4	9
Originated Loan | Consumer, direct
Financing Receivable, Modifications [Line Items]
Total Recorded Investment	$ 90	$ 89
Financing Receivable, Modifications, Number of Contracts | contract	9	6
Financing Receivable, Modifications, Pre-Modification Recorded Investment	$ 90	$ 89
Financing Receivable, Modifications, Post-Modification Recorded Investment	$ 90	$ 89
Acquired Loans
Financing Receivable, Modifications [Line Items]
Financing Receivable, Modifications, Subsequent Default, Number of Contracts | contract	0	1
Financing Receivable, Modifications, Subsequent Default, Recorded Investment	$ 0	$ 73
Financing Receivable, Modifications, Subsequent Default, Determination of Allowance for Credit Losses	0	0
Total Recorded Investment	$ 320	$ 732
Financing Receivable, Modifications, Number of Contracts | contract	4	9
Financing Receivable, Modifications, Pre-Modification Recorded Investment	$ 320	$ 700
Financing Receivable, Modifications, Post-Modification Recorded Investment	320	700
Acquired Loans | Commercial real estate
Financing Receivable, Modifications [Line Items]
Total Recorded Investment	$ 50
Financing Receivable, Modifications, Number of Contracts | contract	1
Financing Receivable, Modifications, Pre-Modification Recorded Investment	$ 50
Financing Receivable, Modifications, Post-Modification Recorded Investment	$ 50
Acquired Loans | Commercial real estate
Financing Receivable, Modifications [Line Items]
Total Recorded Investment		$ 271
Financing Receivable, Modifications, Number of Contracts | contract		2
Financing Receivable, Modifications, Pre-Modification Recorded Investment		$ 271
Financing Receivable, Modifications, Post-Modification Recorded Investment		$ 271
Acquired Loans | Residential real estate
Financing Receivable, Modifications [Line Items]
Financing Receivable, Modifications, Subsequent Default, Number of Contracts | contract	0	1
Financing Receivable, Modifications, Subsequent Default, Recorded Investment	$ 0	$ 73
Financing Receivable, Modifications, Subsequent Default, Determination of Allowance for Credit Losses, Amount	0	0
Total Recorded Investment	$ 269	$ 126
Financing Receivable, Modifications, Number of Contracts | contract	2	2
Financing Receivable, Modifications, Pre-Modification Recorded Investment	$ 269	$ 126
Financing Receivable, Modifications, Post-Modification Recorded Investment	269	126
Acquired Loans | Home equity lines of credit
Financing Receivable, Modifications [Line Items]
Total Recorded Investment		$ 326
Financing Receivable, Modifications, Number of Contracts | contract		4
Financing Receivable, Modifications, Pre-Modification Recorded Investment		$ 294
Financing Receivable, Modifications, Post-Modification Recorded Investment		294
Acquired Loans | Consumer, direct
Financing Receivable, Modifications [Line Items]
Total Recorded Investment	$ 1	$ 9
Financing Receivable, Modifications, Number of Contracts | contract	1	1
Financing Receivable, Modifications, Pre-Modification Recorded Investment	$ 1	$ 9
Financing Receivable, Modifications, Post-Modification Recorded Investment	$ 1	$ 9

XML

Loans (Summary Of Activity In Allowance For Loan And Lease Losses) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2018	Mar. 31, 2017
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Provision for (recovery of) loan losses	$ 1,983	$ 624
Commercial real estate
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning balance	7,797	7,172
Charge-offs	(842)	0
Recoveries	15	102
Net (charge-offs)	(827)	102
Provision for (recovery of) loan losses	1,092	(208)
Ending balance	8,062	7,066
Period-end amount allocated to:
Loans individually evaluated for impairment			$ 1	$ 462
Loans collectively evaluated for impairment			8,061	6,604
Ending balance	7,797	7,172	8,062	7,066
Total loans
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning balance	18,685	18,196
Charge-offs	(2,299)	(1,100)
Recoveries	321	515
Net (charge-offs)	(1,978)	(585)
Provision for (recovery of) loan losses	1,983	767
Ending balance	18,690	18,378
Period-end amount allocated to:
Loans individually evaluated for impairment			356	1,092
Loans collectively evaluated for impairment			18,334	17,286
Ending balance	18,685	18,196	18,690	18,378
Commercial and industrial
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning balance	5,813	6,353
Charge-offs	(31)	(117)
Recoveries	0	0
Net (charge-offs)	(31)	(117)
Provision for (recovery of) loan losses	(513)	298
Ending balance	5,269	6,534
Period-end amount allocated to:
Loans individually evaluated for impairment			224	449
Loans collectively evaluated for impairment			5,045	6,085
Ending balance	5,813	6,353	5,269	6,534
Residential real estate
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning balance	904	982
Charge-offs	(145)	(108)
Recoveries	26	89
Net (charge-offs)	(119)	(19)
Provision for (recovery of) loan losses	301	182
Ending balance	1,086	1,145
Period-end amount allocated to:
Loans individually evaluated for impairment			57	139
Loans collectively evaluated for impairment			1,029	1,006
Ending balance	904	982	1,086	1,145
Home equity lines of credit
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning balance	693	688
Charge-offs	(37)	(3)
Recoveries	7	3
Net (charge-offs)	(30)	0
Provision for (recovery of) loan losses	27	(13)
Ending balance	690	675
Period-end amount allocated to:
Loans individually evaluated for impairment			15	16
Loans collectively evaluated for impairment			675	659
Ending balance	693	688	690	675
Consumer, indirect
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning balance	2,944	2,312
Charge-offs	(929)	(483)
Recoveries	134	206
Net (charge-offs)	(795)	(277)
Provision for (recovery of) loan losses	885	374
Ending balance	3,034	2,409
Period-end amount allocated to:
Loans individually evaluated for impairment			20	24
Loans collectively evaluated for impairment			3,014	2,385
Ending balance	2,944	2,312	3,034	2,409
Consumer, direct
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning balance	464	518
Charge-offs	(110)	(40)
Recoveries	69	50
Net (charge-offs)	(41)	10
Provision for (recovery of) loan losses	50	(90)
Ending balance	473	438
Period-end amount allocated to:
Loans individually evaluated for impairment			39	2
Loans collectively evaluated for impairment			434	436
Ending balance	464	518	473	438
Deposit account overdrafts
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning balance	70	171
Charge-offs	(205)	(349)
Recoveries	70	65
Net (charge-offs)	(135)	(284)
Provision for (recovery of) loan losses	141	224
Ending balance	76	111
Period-end amount allocated to:
Loans individually evaluated for impairment			0	0
Loans collectively evaluated for impairment			76	111
Ending balance	70	171	76	111
Receivables Acquired with Deteriorated Credit Quality [Member]
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning balance	108	233
Ending balance	108	90
Period-end amount allocated to:
Ending balance	$ 108	$ 233	$ 108	$ 90

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Loans Summary of Activity in Allowance for Acquired Loan and Lease Losses (Details) - Receivables Acquired with Deteriorated Credit Quality [Member] - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning balance	$ 108	$ 233
Recovery of loan losses	0	(143)
Ending balance	$ 108	$ 90

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Long-Term Borrowings (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Debt Instrument [Line Items]
Junior subordinated debt securities	$ 7,151	$ 7,107
Unamortized debt issuance costs	(22)	(27)
Total long-term borrowings	$ 123,481	$ 144,019
Long-term borrowings, Weighted-Average Rate	2.24%	2.11%
Federal Home Loan Bank Advances, Fixed Rate, Putable Non-amortizing [Member]
Debt Instrument [Line Items]
FHLB Advances	$ 95,000	$ 115,000
Federal Home Loan Bank, Advances, Weighted Average Interest Rate	1.94%	1.86%
Federal Home Loan Bank Advances, Fixed Rate, Amortizing [Member]
Debt Instrument [Line Items]
FHLB Advances	$ 21,352	$ 21,939
Federal Home Loan Bank, Advances, Weighted Average Interest Rate	2.02%	2.02%
Junior Subordinated Debt [Member]
Debt Instrument [Line Items]
Weighted- Average Rate	6.89%	0.00%

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Long-Term Borrowings (Narrative) (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2018 USD ($) contract	Dec. 31, 2017 USD ($)
Long-term borrowings	$ 123,481	$ 144,019
Junior subordinated debt securities	7,151	$ 7,107
Unadvanced revolving line of credit	$ 15,000
Federal Home Loan Bank Advances, Fixed Rate, Amortizing [Member] | Minimum
Federal Home Loan Bank, advances, general debt obligations, disclosures, maturities period	2 years
Federal Home Loan Bank Advances, Fixed Rate, Amortizing [Member] | Maximum
Federal Home Loan Bank, advances, general debt obligations, disclosures, maturities period	13 years
Revolving Credit Facility [Member]
Debt Instrument, Basis Spread on Variable Rate	3.00%
Interest Rate Swap [Member]
Derivative, Number of Instruments Held | contract	7
Derivative, Notional Amount	$ 60,000

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Long-Term Borrowings (Maturity) (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Debt Disclosure [Abstract]
Nine months ending December 31, 2018	$ 3,840
Year ending December 31, 2019	13,508
Year ending December 31, 2020	25,564
Year ending December 31, 2021	21,979
Year ending December 31, 2022	16,521
Thereafter	42,069
Long-term borrowings	$ 123,481	$ 144,019
Nine months ending December 31, 2016	1.58%
Year ending December 31, 2017	1.21%
Year ending December 31, 2018	1.83%
Year ending December 31, 2019	1.74%
Year ending December 31, 2020	1.96%
Thereafter	3.26%
Total long-term borrowings	2.24%	2.11%

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Stockholders' Equity (Stock Rollforward) (Details)	3 Months Ended
	Mar. 31, 2018 shares
Increase (Decrease) in Stock by Class [Roll Forward]
Common stock, beginning of period	18,952,385
Treasury stock, beginning of period	702,449
Changes related to stock-based compensation awards:
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period	(102)
Changes related to deferred compensation plan for Boards of Directors:
Common stock, end of period	18,956,838
Treasury stock, end of period	634,400
Common Shares
Increase (Decrease) in Stock by Class [Roll Forward]
Common stock, beginning of period	18,952,385
Changes related to stock-based compensation awards:
Cancellation of restricted common shares	0
Changes related to deferred compensation plan for Boards of Directors:
Common shares issued under dividend reinvestment plan	4,453
Common stock, end of period	18,956,838
Treasury Stock
Increase (Decrease) in Stock by Class [Roll Forward]
Treasury stock, beginning of period	702,449
Changes related to stock-based compensation awards:
Release of restricted common shares	28,387
Cancellation of restricted common shares	170
Grant of common shares	(11,112)
Changes related to deferred compensation plan for Boards of Directors:
Purchase of treasury stock	1,197
Reissuance of treasury stock	(73)
Common shares issued under compensation plan for Boards of Directors	(3,600)
Treasury stock, end of period	630,440
Restricted Shares | Treasury Stock
Changes related to stock-based compensation awards:
Grant of common shares	(86,876)

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Stockholders' Equity (Narrative) (Details) - shares	Apr. 13, 2018	Mar. 31, 2018	Dec. 31, 2017
Class of Stock [Line Items]
Preferred Stock, Shares Outstanding		0
Preferred stock - shares authorized		50,000	50,000
Preferred stock - shares issued		0	0
Subsequent Event [Member]
Class of Stock [Line Items]
Common Shares Issued in Business Combination	1,152,711

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Stockholders' Equity (Accumulated Other Comprehensive (Loss) Income) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Accumulated Other Comprehensive Income (Loss) [Line Items]
Amounts reclassified out of accumulated other comprehensive loss per ASU 2016-01 (a)	$ (5,020)
Other Comprehensive Income (Loss), Reclassification Adjustment in Net Income, Net of Tax	1
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax	2,218		$ 1,129
Accumulated Other Comprehensive (Loss) Income [Roll Forward]
Unrealized Loss on Securities	(2,088)
Realized gain on sale of securities, net of tax	(1)
Other comprehensive (loss) income, net of reclassifications and tax	(6,935)
Unrealized Loss on Securities	(14,044)
Unrecognized Net Pension and Postretirement Costs	4,256
Other comprehensive (loss) income, net of reclassifications and tax	20
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Net of Tax	1,089	$ (67)
Unrecognized Net Pension and Postretirement Costs	(4,236)
Accumulated Other Comprehensive Loss	(5,215)
Other comprehensive (loss) income, net of reclassifications and tax	(5,826)
Accumulated Other Comprehensive Loss	$ (16,062)

XML

Employee Benefit Plans (Details) - USD ($)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Pension Plans, Defined Benefit
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items]
Defined Benefit Plan, Benefit Obligation, (Increase) Decrease for Settlement	$ 0
Components of net periodic benefit costs:
Interest cost	105,000	$ 113,000
Expected return on plan assets	(147,000)	(138,000)
Amortization of net loss	28,000	25,000
Net periodic benefit/cost	(14,000)	0
Other Postretirement Benefit Plans, Defined Benefit
Components of net periodic benefit costs:
Interest cost	1,000	1,000
Amortization of net loss	(2,000)	(2,000)
Net periodic benefit/cost	$ (1,000)	$ (1,000)
Other Postretirement Benefit Plans, Defined Benefit | Employees Hired before January 1, 2003
Components of net periodic benefit costs:
Benefit based on highest average salary for number of consecutive years	5 years
Number of years for consecutive years calculation	10 years
Other Postretirement Benefit Plans, Defined Benefit | Employees Hired on or after January 1, 2003
Components of net periodic benefit costs:
Percent of annual salary to calculate benefit	2.00%

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Earnings Per Common Share (Calculations of Basic and Diluted Earnings per Common Share) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Earnings Per Share [Abstract]
Distributed earnings allocated to shareholders	$ 4,716	$ 3,604
Undistributed earnings allocated to shareholders	6,962	5,162
Net earnings allocated to shareholders	$ 11,678	$ 8,766
Weighted-average number of common shares outstanding - basic	18,126,089	18,029,991
Effect of potentially dilutive shares	129,946	162,966
Total weighted-average diluted shares outstanding	18,256,035	18,192,957
Earnings per common share - basic	$ 0.64	$ 0.49
Earnings per common share - diluted	$ 0.64	$ 0.48
Anti-dilutive shares excluded from computation of EPS	32	455

XML

Financial Instruments with Off- Balance Sheet Risk (Details)	3 Months Ended
	Mar. 31, 2018 USD ($) contract	Mar. 31, 2017 USD ($)	Dec. 31, 2017 USD ($)
Derivative [Line Items]
Interest Rate Derivative Assets, at Fair Value	$ 6,600,000		$ 4,600,000
Interest Rate Derivative Liabilities, at Fair Value	$ 3,900,000		3,200,000
Maximum Length of Time Hedged in Interest Rate Cash Flow Hedge	10 years
Reclassifications into Interest expense on cash flow hedge	$ 0
Reclassifications into interest expense on cash flow hedge, next twelve months	0
Unrealized Gain (Loss) on Interest Rate Cash Flow Hedges, Pretax, Accumulated Other Comprehensive Income (Loss)	2,800,000	$ 0
Reclassifications into earnings on cash flow hedge	0
Fair Value of Interest Rate Swaps	$ 3,900,000		3,000,000
Interest Rate Swap [Member]
Derivative [Line Items]
Derivative, Number of Instruments Held | contract	7
Derivative, Notional Amount	$ 60,000,000
Interest Rate Contract [Member]
Derivative [Line Items]
Derivative, Notional Amount	$ 373,100,000		$ 363,300,000

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Stock-Based Compensation (Narrative) (Details) $ in Millions	3 Months Ended
	Mar. 31, 2018 USD ($) shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized stock-based compensation expense related to unvested awards, amount | $	$ 3.1
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition	2 years 2 months 3 days
Maximum Aggregate Value of Performance Unit Award Outstanding | $	$ 1.3
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common shares authorized under the 2006 Equity Plan	800,000
SARs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Awards expiration period	10 years
Awards vesting period	3 years
Restricted Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total intrinsic value of awards released in period | $	$ 2.9
Restricted Shares | Employees | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Awards expiration period	1 year
Restricted Shares | Employees | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Awards expiration period	3 years
Restricted Shares | Director [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Awards expiration period	6 months
2006 Equity Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares authorized under 2006 Equity Plan	1,081,260
Time-Based Vesting | Restricted Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Awarded	2,000
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period	2,000
Performance-Based Vesting | Restricted Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Awarded	84,876
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period	84,876
Director [Member] | Time-Based Vesting | Restricted Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period	3,600

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Stock-Based Compensation (Stock Appreciation Rights) (Details) - SARs - USD ($)	3 Months Ended
	Mar. 31, 2018	Dec. 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares outstanding (in shares)	0	314
Shares exercisable (in shares)	0
Shares outstanding, weighted-average exercise price (in dollars per share)	$ 0.00	$ 23.77
Shares exercisable, weighted-average exercise price (in dollars per share)	$ 0.00
Shares outstanding, weighted-average remaining contractual life	1 day
Shares exercisable, weighted-average remaining contractual life	1 day
Shares outstanding, aggregate intrinsic value	$ 0
Shares exercisable, aggregate intrinsic value	$ 0
Forfeited	314
Forfeited	$ 23.77

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Stock-Based Compensation (Restricted Shares) (Details) - Restricted Shares $ / shares in Units, $ in Millions	3 Months Ended
	Mar. 31, 2018 USD ($) $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total intrinsic value of awards released in period | $	$ 2.9
Time-Based Vesting
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period	2,000
Awarded	2,000
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ / shares	$ 35.32
Number of Shares (in shares)
Outstanding at January 1	33,082
Forfeited	0
March 31, 2018	35,082
Weighted - Average Grant Date Fair Value (in dollars per share)
Outstanding at January 1 | $ / shares	$ 22.85
Forfeited | $ / shares	0.00
March 31, 2018 | $ / shares	$ 23.56
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period	0
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | $ / shares	$ 0.00
Performance-Based Vesting
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period	84,876
Awarded	84,876
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ / shares	$ 35.43
Number of Shares (in shares)
Outstanding at January 1	176,218
Forfeited	170
March 31, 2018	178,063
Weighted - Average Grant Date Fair Value (in dollars per share)
Outstanding at January 1 | $ / shares	$ 25.50
Forfeited | $ / shares	33.66
March 31, 2018 | $ / shares	$ 31.09
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period	82,861
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | $ / shares	$ 23.63
Director [Member] | Time-Based Vesting
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period	3,600

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Stock-Based Compensation (Stock-Based Compensation and Related Tax Benefit) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Total stock-based compensation expense	$ 1,028	$ 568
Recognized tax benefit	(216)	(199)
Net expense recognized	$ 812	$ 369

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Revenue (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Jan. 01, 2018	Dec. 31, 2017
Cumulative Effect on Retained Earnings, Net of Tax	$ 3,100
Insurance income	4,655	$ 4,102
Accrued expenses and other liabilities	37,977			$ 39,254
Retained earnings (b)	143,297			$ 134,362
Other non-interest income (a)	1,331	412
Deferred Revenue	4,309		$ 4,700
Deferred Revenue, Additions	1,824
Deferred Revenue, Revenue Recognized	(2,215)
Commission and fees from sale of insurance policies	3,189
Fees related to third party insurance administration services	119
Performance-based insurance commissions	1,347
Trust and investment income	3,068	2,682
Interchange electronic banking income	2,264
Promotional and usage electronic banking income	521
Ongoing maintenance fees for deposit accounts	675
Transactional-based fees for deposit accounts	1,445
Commercial loan swap fees	116	$ 268
Transactional-based fees included in other non-interest income	281
Revenue from Contract with Customer, Excluding Assessed Tax	13,025
Accounting Standards Update 2014-09 [Member]
Cumulative Effect on Retained Earnings, Net of Tax	3,100
Difference between Revenue Guidance in Effect before and after Topic 606 [Member]
Insurance income	(391)
Accrued expenses and other liabilities	2,746
Retained earnings (b)	(2,746)
Other non-interest income (a)	400
Calculated under Revenue Guidance in Effect before Topic 606 [Member]
Insurance income	4,264
Accrued expenses and other liabilities	35,231
Retained earnings (b)	146,043
Transferred at Point in Time [Member]
Revenue from Contract with Customer, Excluding Assessed Tax	3,189
Transferred over Time [Member]
Revenue from Contract with Customer, Excluding Assessed Tax	$ 9,836

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Acquisitions (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Jun. 30, 2018	Mar. 31, 2018	Apr. 13, 2018
Business Acquisition [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax		$ 13,025
Transferred at Point in Time [Member]
Business Acquisition [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax		$ 3,189
Subsequent Event [Member]
Business Acquisition [Line Items]
Common Shares Issued in Business Combination			1,152,711
Subsequent Event [Member] | ASB Financial Corp. [Member]
Business Acquisition [Line Items]
Business Combination, Consideration Transferred	$ 41,500
Shares, Outstanding			1,979,034
Business Acquisition Cash Consideration Per Share			$ 20.00
Common Shares Issued in Business Combination			0.592