
(Dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
2019
Obligations of:

U.S. government sponsored agencies	$	7,917	$	292	$	—	$	8,209
States and political subdivisions	111,217		3,018		(131)		114,104
Residential mortgage-backed securities	787,430		7,763		(4,184)		791,009
Commercial mortgage-backed securities	18,135		88		(135)		18,088
Bank-issued trust preferred securities	4,696		137		(142)		4,691
Total available-for-sale securities	$	929,395	$	11,298	$	(4,592)	$	936,101
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


	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
2019
Obligations of:


States and political subdivisions	$	6,226	$	74	2	$	2,441	$	57	1	$	8,667	$	131
Residential mortgage-backed securities	284,096		2,527		62	88,993		1,657		39	373,089		4,184
Commercial mortgage-backed securities	970		21		1	2,409		114		3	3,379		135
Bank-issued trust preferred securities	—		—		—	1,858		142		2	1,858		142
Total	$	291,292	$	2,622	65	$	95,701	$	1,970	45	$	386,993	$	4,592
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

Management systematically evaluates available-for-sale investment securities for other-than-temporary declines in fair value on a quarterly basis. At December 31, 2019, 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 December 31, 2019 and 2018 were largely attributable to changes in market interest rates and spreads since the securities were purchased.

At December 31, 2019, approximately 99% of the fair value of mortgage-backed securities 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 two positions, consisted of privately issued mortgage-backed securities with all of the underlying mortgages originated prior to 2004. Both of these two positions had a fair value of less than 90% of their book value, with an aggregate book and fair value of $205,000 and $144,000, respectively. Management has 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.

The unrealized losses with respect to the two bank-issued trust preferred securities that had been in an unrealized loss position for twelve months or more at December 31, 2019 were primarily attributable to the subordinated nature of the debt.

The table below presents the amortized cost, fair value and total weighted-average yield of available-for-sale securities by contractual maturity at December 31, 2019. The weighted-average yields are based on the amortized cost and are computed on a fully taxable-equivalent basis using a statutory federal corporate income tax rate of 21%. 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	$	—		$	1,993		$	5,924		$	—		$	7,917
States and political subdivisions	4,303			24,842			43,699			38,373			111,217
Residential mortgage-backed securities	1			1,860			77,441			708,128			787,430
Commercial mortgage-backed securities	2,372			11,267			982			3,514			18,135
Bank-issued trust preferred securities	—			—			4,696			—			4,696
Total available-for-sale securities	$	6,676		$	39,962		$	132,742		$	750,015		$	929,395
Fair value
Obligations of:

U.S. government sponsored agencies	$	—		$	2,045		$	6,164		$	—		$	8,209
States and political subdivisions	4,316			25,224			45,445			39,119			114,104
Residential mortgage-backed securities	1			1,890			77,076			712,042			791,009
Commercial mortgage-backed securities	2,374			11,325			1,010			3,379			18,088
Bank-issued trust preferred securities	—			—			4,691			—			4,691
Total available-for-sale securities	$	6,691		$	40,484		$	134,386		$	754,540		$	936,101
Total weighted-average yield	2.32		%	2.63		%	2.71		%	2.67		%	2.68		%


(Dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
2019
Obligations of:
States and political subdivisions	$	4,346	$	445	$	—	$	4,791
Residential mortgage-backed securities	21,494		169		(94)		21,569
Commercial mortgage-backed securities	5,907		275		(1)		6,181
Total held-to-maturity securities	$	31,747	$	889	$	(95)	$	32,541
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


	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
2019


Residential mortgage-backed securities	$	7,731	$	67	1	$	890	$	27	1	$	8,621	$	94
Commercial mortgage-backed securities	1,666		1		1	—		—		—	1,666		1
Total	$	9,397	$	68	2	$	890	$	27	1	$	10,287	$	95
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

The table below presents the amortized cost, fair value and total weighted-average yield of held-to-maturity securities by contractual maturity at December 31, 2019. The weighted-average yields are based on the amortized cost and are computed on a fully taxable-equivalent basis using a statutory federal corporate income tax rate of 21%. 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	$	302		$	—		$	3,543		$	501		$	4,346
Residential mortgage-backed securities	—			—			3,648			17,846			21,494
Commercial mortgage-backed securities	—			398			3,842			1,667			5,907
Total held-to-maturity securities	$	302		$	398		$	11,033		$	20,014		$	31,747
Fair value
Obligations of:
States and political subdivisions	$	303		$	—		$	3,986		$	502		$	4,791
Residential mortgage-backed securities	—			—			3,715			17,854			21,569
Commercial mortgage-backed securities	—			402			4,113			1,666			6,181
Total held-to-maturity securities	$	303		$	402		$	11,814		$	20,022		$	32,541
Total weighted-average yield	2.61		%	2.29		%	2.79		%	2.82		%	2.80		%


(Dollars in thousands)	2019		2018
FHLB stock	$	27,235	$	29,367
FRB stock	13,310		12,294
Nonqualified deferred compensation	1,499		987
Equity investment securities	321		277
Other investment securities	365		60
Total other investment securities	$	42,730	$	42,985

During 2019, Peoples redeemed $4.9 million of FHLB stock in order to be in compliance with the requirements of the FHLB of Cincinnati, and acquired $2.8 million of FHLB stock through the First Prestonsburg acquisition.

As of January 1, 2018, Peoples adopted ASU 2016-01, which requires changes in the fair value of equity investment securities to be recognized in net income. Prior to 2018, changes in the fair value of equity investment securities were recognized through accumulated other comprehensive income. During the year ended December 31, 2019, Peoples recorded the change in the fair value of equity investment securities held at December 31, 2019 in other non-interest income, resulting in unrealized gain of $44,000. During the year ended December 31, 2018, Peoples recorded the change in the fair value of equity investment securities held at

December 31, 2018 in other non-interest income, resulting in unrealized gain of $619,000. Additionally, the adoption of ASU 2016-01 resulted in the reclassification of equity investment securities from available-for-sale investment securities to other investment securities. Consequently, as of January 1, 2018, net realized gains on the sale of equity investment securities are included in other non-interest income on the Consolidated Statements of Income. Net realized gains on sales of equity investment securities, included in other non-interest income during 2019, consisted of a realized gain of $787,000 related to the sale of restricted Class B Visa stock, which had been held at a carrying cost and fair value of zero due to the litigation liability associated with the stock. During 2018, there was a $413,000 realized loss on the sale of equity investment securities, included in other non-interest income.

At December 31, 2019, Peoples' investment in equity investment securities was comprised largely of common stocks issued by various unrelated bank holding companies. There were no equity investment securities of a single issuer that exceeded 10% of Peoples' stockholders' equity.

Peoples had pledged available-for-sale investment securities and held-to-maturity investment securities 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 and held-to-maturity securities to secure additional borrowing capacity at the FHLB and the FRB.


	Carrying Amount
(Dollars in thousands)	2019		2018
Securing public and trust department deposits, and Repurchase Agreements:
Available-for-sale	$	527,655	$	429,987
Held-to-maturity	12,975		16,928
Securing additional borrowing capacity at the FHLB and the FRB:
Available-for-sale	44,618		60,058
Held-to-maturity	14,155		16,731