Investment Securities (Tables)

9 Months Ended

Sep. 30, 2019

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, 2019
Obligations of:
U.S. government sponsored agencies	$	11,714	$	431	$	—		$	12,145
States and political subdivisions	112,647		3,029		(63		)	115,613
Residential mortgage-backed securities	826,797		11,230		(2,855		)	835,172
Commercial mortgage-backed securities	20,432		137		(108		)	20,461
Bank-issued trust preferred securities	4,696		122		(174		)	4,644
Total available-for-sale securities	$	976,286	$	14,949	$	(3,200	)	$	988,035
December 31, 2018
Obligations of:
States and political subdivisions	$	88,358	$	787	$	(558	)	$	88,587
Residential mortgage-backed securities	705,289		2,720		(15,401		)	692,608
Commercial mortgage-backed securities	6,812		—		(105		)	6,707
Bank-issued trust preferred securities	4,196		75		(282		)	3,989
Total available-for-sale securities	$	804,655	$	3,582	$	(16,346	)	$	791,891

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)	2019		2018		2019		2018
Gross gains realized	$	97	$	—	$	157	$	5
Gross losses realized	—		—		87		151
Net losses realized	$	97	$	—	$	70	$	(146	)

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, 2019
Obligations of:
States and political subdivisions	$	—	$	—	—	$	2,632	$	63	1	$	2,632	$	63
Residential mortgage-backed securities	176,740		1,267		41	110,378		1,588		42	287,118		2,855
Commercial mortgage-backed securities	—		—		—	2,481		108		3	2,481		108
Bank-issued trust preferred securities	—		—		—	1,826		174		2	1,826		174
Total	$	176,740	$	1,267	41	$	117,317	$	1,933	48	$	294,057	$	3,200
December 31, 2018
Obligations of:
States and political subdivisions	$	10,173	$	18	17	$	19,918	$	540	20	$	30,091	$	558
Residential mortgage-backed securities	47,562		226		50	517,335		15,175		170	564,897		15,401
Commercial mortgage-backed securities	—		—		—	6,707		105		3	6,707		105
Bank-issued trust preferred securities	—		—		—	1,718		282		2	1,718		282
Total	$	57,735	$	244	67	$	545,678	$	16,102	195	$	603,413	$	16,346

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, 2019
Obligations of:
States and political subdivisions	$	4,395	$	502	$	—		$	4,897
Residential mortgage-backed securities	22,412		237		(41		)	22,608
Commercial mortgage-backed securities	7,022		366		—			7,388
Total held-to-maturity securities	$	33,829	$	1,105	$	(41	)	$	34,893
December 31, 2018
Obligations of:
States and political subdivisions	$	4,403	$	493	$	—		$	4,896
Residential mortgage-backed securities	29,044		191		(632		)	28,603
Commercial mortgage-backed securities	3,514		—		(50		)	3,464
Total held-to-maturity securities	$	36,961	$	684	$	(682	)	$	36,963

Cost-method Investments, Description [Text Block]

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



(Dollars in thousands)	September 30, 2019		December 31, 2018
FHLB stock	$	27,716	$	29,367
FRB stock	13,310		12,294
Nonqualified deferred compensation	1,336		987
Equity investment securities	318		277
Other investment securities	365		60
Total other investment securities	$	43,045	$	42,985

Schedule of Financial Instruments Owned and Pledged as Collateral [Table Text Block]

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



	Carrying Amount
(Dollars in thousands)	September 30, 2019		December 31, 2018

Securing public and trust department deposits, and repurchase agreements:
Available-for-sale	$	565,093	$	429,987
Held-to-maturity	14,302		16,928

Securing additional borrowing capacity at the FHLB and the FRB:
Available-for-sale	49,911		60,058
Held-to-maturity	14,835		16,731

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, 2019. 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:
U.S. government sponsored agencies	$	—		$	1,992		$	9,722		$	—		$	11,714
States and political subdivisions	3,769			28,595			42,723			37,560			112,647
Residential mortgage-backed securities	1			1,703			66,677			758,416			826,797
Commercial mortgage-backed securities	—			15,858			989			3,585			20,432
Bank-issued trust preferred securities	—			—			4,696			—			4,696
Total available-for-sale securities	$	3,770		$	48,148		$	124,807		$	799,561		$	976,286
Fair value
Obligations of:
U.S. government sponsored agencies	$	—		$	2,053		$	10,092		$	—		$	12,145
States and political subdivisions	3,774			28,917			44,334			38,588			115,613
Residential mortgage-backed securities	1			1,731			66,823			766,617			835,172
Commercial mortgage-backed securities	—			15,952			1,027			3,482			20,461
Bank-issued trust preferred securities	—			—			4,644			—			4,644
Total available-for-sale securities	$	3,775		$	48,653		$	126,920		$	808,687		$	988,035
Total weighted-average yield	2.26		%	2.52		%	2.74		%	2.83		%	2.80		%

Held-to-maturity securities

Investment Holdings [Line Items]

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, 2019
Residential mortgage-backed securities	$	7,885	$	14	1	$	899	$	27	1	$	8,784	$	41
Total	$	7,885	$	14	1	$	899	$	27	1	$	8,784	$	41
December 31, 2018
Residential mortgage-backed securities	$	—	$	—	—	$	13,102	$	632	5	$	13,102	$	632
Commercial mortgage-backed securities	—		—		—	3,464		50		1	3,464		50
Total	$	—	$	—	—	$	16,566	$	682	6	$	16,566	$	682

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, 2019. 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	$	303		$	—		$	2,985		$	1,107		$	4,395
Residential mortgage-backed securities	—			—			3,842			18,570			22,412
Commercial mortgage-backed securities	—			404			3,868			2,750			7,022
Total held-to-maturity securities	$	303		$	404		$	10,695		$	22,427		$	33,829
Fair value
Obligations of:
States and political subdivisions	$	305		$	—		$	3,481		$	1,111		$	4,897
Residential mortgage-backed securities	—			—			3,916			18,692			22,608
Commercial mortgage-backed securities	—			410			4,208			2,770			7,388
Total held-to-maturity securities	$	305		$	410		$	11,605		$	22,573		$	34,893
Total weighted-average yield	2.61		%	2.29		%	1.49		%	2.82		%	2.39		%