Investment Securities (Tables)

9 Months Ended

Sep. 30, 2018

Summary of Available-for-sale Investment Securities

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



(Dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
September 30, 2018
Obligations of:
States and political subdivisions	$	94,014	$	585	$	(809	)	$	93,790
Residential mortgage-backed securities	714,360		1,558		(27,262		)	688,656
Commercial mortgage-backed securities	6,861		—		(148		)	6,713
Bank-issued trust preferred securities	4,196		132		(162		)	4,166
Total available-for-sale securities	$	819,431	$	2,275	$	(28,381	)	$	793,325
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 investment 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 investment securities from available-for-sale

investment securities to other investment securities.

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

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



	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(Dollars in thousands)	2018		2017		2018			2017
Gross gains realized	$	—	$	1,877	$	5		$	2,235
Gross losses realized	—		16		151			16
Net gain (loss) realized	$	—	$	1,861	$	(146	)	$	2,219

Summary of Available-for-sale Securities with Unrealized Loss

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



	Less than 12 Months					12 Months or More					Total
(Dollars in thousands)	Fair Value		Unrealized Loss		No. of Securities	Fair Value		Unrealized Loss		No. of Securities	Fair Value		Unrealized Loss
September 30, 2018
Obligations of:
States and political subdivisions	$	30,112	$	224	52	$	9,480	$	585	6	$	39,592	$	809
Residential mortgage-backed securities	224,049		5,503		113	405,124		21,759		128	629,173		27,262
Commercial mortgage-backed securities	3,127		44		1	3,587		104		2	6,714		148
Bank-issued trust preferred securities	—		—		—	1,838		162		2	1,838		162
Total	$	257,288	$	5,771	166	$	420,029	$	22,610	138	$	677,317	$	28,381
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 investment 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 investment securities from available-for-sale investment securities to other investment securities.

Summary of Held-to-maturity Investment Securities

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



(Dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
September 30, 2018
Obligations of:
States and political subdivisions	$	4,451	$	438	$	—		$	4,889
Residential mortgage-backed securities	29,765		79		(1,126		)	28,718
Commercial mortgage-backed securities	3,574		—		(86		)	3,488
Total held-to-maturity securities	$	37,790	$	517	$	(1,212	)	$	37,095
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

Cost-method Investments, Description [Text Block]

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



(Dollars in thousands)	September 30, 2018		December 31, 2017
FHLB stock	$	29,368	$	28,132
FRB stock	12,294		10,179
Equity investment securities (a)	278		—
Other	1,104		60
Total other investment securities	$	43,044	$	38,371

Available-for-sale securities

Investment Holdings [Line Items]

Summary of Investment Securities by Contractual Maturity

The table below presents the amortized cost, fair value and total weighted-average yield of available-for-sale securities by contractual maturity at September 30, 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	$	714		$	12,538		$	26,289		$	54,473		$	94,014
Residential mortgage-backed securities	994			12,898			46,292			654,176			714,360
Commercial mortgage-backed securities	—			5,678			—			1,183			6,861
Bank-issued trust preferred securities	—			—			4,196			—			4,196
Total available-for-sale securities	$	1,708		$	31,114		$	76,777		$	709,832		$	819,431
Fair value
Obligations of:
States and political subdivisions	$	713		$	12,489		$	26,184		$	54,404		$	93,790
Residential mortgage-backed securities	990			12,590			44,656			630,420			688,656
Commercial mortgage-backed securities	—			5,548			—			1,165			6,713
Bank-issued trust preferred securities	—			—			4,166			—			4,166
Total available-for-sale securities	$	1,703		$	30,627		$	75,006		$	685,989		$	793,325
Total weighted-average yield	2.52		%	2.78		%	3.38		%	2.84		%	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 September 30, 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	$	—		$	309		$	2,982		$	1,160		$	4,451
Residential mortgage-backed securities	—			428			8,060			21,277			29,765
Commercial mortgage-backed securities	—			—			—			3,574			3,574
Total held-to-maturity securities	$	—		$	737		$	11,042		$	26,011		$	37,790
Fair value
Obligations of:
States and political subdivisions	$	—		$	309		$	3,410		$	1,170		$	4,889
Residential mortgage-backed securities	—			415			8,028			20,275			28,718
Commercial mortgage-backed securities	—			—			—			3,488			3,488
Total held-to-maturity securities	$	—		$	724		$	11,438		$	24,933		$	37,095
Total weighted-average yield	—		%	2.97		%	3.08		%	2.70		%	2.82		%

Summary of Held-to-maturity Securities with Unrealized Loss

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



	Less than 12 Months					12 Months or More					Total
(Dollars in thousands)	Fair Value		Unrealized Loss		No. of Securities	Fair Value		Unrealized Loss		No. of Securities	Fair Value		Unrealized Loss
September 30, 2018
Residential mortgage-backed securities	$	11,826	$	182	6	$	11,260	$	944	3	$	23,086	$	1,126
Commercial mortgage-backed securities	—		—		—	3,488		86		1	3,488		86
Total	$	11,826	$	182	6	$	14,748	$	1,030	4	$	26,574	$	1,212
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