Loans (Tables)

12 Months Ended

Dec. 31, 2019

Receivables [Abstract]

Loan Classification by Type

The major classifications of loan balances (in each case, net of deferred fees and costs), excluding loans held for sale, were as follows at December 31:

(Dollars in thousands)	2019		2018
Originated loans:
Construction	$	83,283	$	124,013
Commercial real estate, other	671,576		632,200
Commercial real estate	754,859		756,213
Commercial and industrial	622,175		530,207
Residential real estate	314,935		296,860
Home equity lines of credit	93,013		93,326
Consumer, indirect	417,127		407,167
Consumer, direct	70,852		71,674
Consumer	487,979		478,841
Deposit account overdrafts	878		583
Total originated loans	$	2,273,839	$	2,156,030
Acquired loans:
Construction	$	5,235	$	12,404
Commercial real estate, other	161,662		184,711
Commercial real estate	166,897		197,115
Commercial and industrial	40,818		35,537
Residential real estate	346,541		296,937
Home equity lines of credit	39,691		40,653
Consumer, indirect	58		136
Consumer, direct	5,681		2,370
Consumer	5,739		2,506
Total acquired loans	$	599,686	$	572,748
Total loans	$	2,873,525	$	2,728,778

Purchased Credit Impaired Loans

The carrying amounts of these purchased credit impaired loans included in the loan balances above are summarized as follows at December 31:

(Dollars in thousands)	2019		2018
Commercial real estate	$	9,150	$	11,955
Commercial and industrial	3,689		1,287
Residential real estate	23,814		20,062
Consumer	385		58
Total outstanding balance	$	37,038	$	33,362
Net carrying amount	$	23,750	$	22,475

Accretable Yield Rollforward

Changes in the accretable yield for purchased credit impaired loans during the year ended December 31 were as follows:

(Dollars in thousands)	2019		2018
Balance, beginning of period	$	8,955	$	6,704
Reclassification from nonaccretable to accretable	199		2,019
Additions:
ASB	—		2,047
First Prestonsburg	3,860		—
Accretion	(2,955)		(1,815)
Balance, December 31	$	10,059	$	8,955

Acquired loans, excluding acquired overdrafts of $375,000, are reported net of the unamortized fair value adjustment. The following table details the fair value adjustment for acquired loans as of the acquisition date:

(Dollars in thousands, except per share data)	First Prestonsburg
Nonimpaired Loans
Contractual cash flows	$	168,729
Nonaccretable difference	19,745
Expected cash flows	148,984
Accretable yield	28,269
Fair value	$	120,715
Credit Impaired Loans
Contractual cash flows	$	17,847
Nonaccretable difference	5,337
Expected cash flows	12,510
Accretable yield	3,860
Fair value	$	8,650

Related Party Loans

Activity in related party loans is presented in the table below. Other changes primarily consist of changes in related party status, and the addition and exit of directors during the year, as applicable.

(Dollars in thousands)
Balance, December 31, 2018	$	16,789
New loans and disbursements	4,198
Repayments	(5,607)
Balance, December 31, 2019	$	15,380

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 at December 31:

					Loans 90+ Days Past Due and Accruing
	Nonaccrual Loans
(Dollars in thousands)	2019		2018		2019		2018
Originated loans:
Construction	$	—	$	710	$	—	$	—
Commercial real estate, other	6,626		6,565		—		786
Commercial real estate	6,626		7,275		—		786
Commercial and industrial	2,060		1,673		—		—
Residential real estate	4,365		4,105		755		398
Home equity lines of credit	458		596		51		7
Consumer, indirect	840		480		—		—
Consumer, direct	43		56		—		—
Consumer	883		536		—		—
Total originated loans	$	14,392	$	14,185	$	806	$	1,191
Acquired loans:
Construction	$	411	$	—	$	—	$	—
Commercial real estate, other	175		319		907		15
Commercial real estate	586		319		907		15
Commercial and industrial	95		36		155		18
Residential real estate	1,996		1,921		1,922		1,032
Home equity lines of credit	707		637		57		—
Consumer, direct	5		—		85		—
Total acquired loans	$	3,389	$	2,913	$	3,126	$	1,065
Total loans	$	17,781	$	17,098	$	3,932	$	2,256

Aging Of The Recorded Investment In Past Due Loans And Leases

The following tables present the aging of the recorded investment in past due loans at December 31:

	Loans Past Due								Current		Total
(Dollars in thousands)	30 – 59 days		60 – 89 days		90 + Days		Total
2019
Originated loans:
Construction	$	—	$	—	$	—	$	—	$	83,283	$	83,283
Commercial real estate, other	75		12		6,432		6,519		665,057		671,576
Commercial real estate	75		12		6,432		6,519		748,340		754,859
Commercial and industrial	2,477		292		994		3,763		618,412		622,175
Residential real estate	4,487		1,231		3,104		8,822		306,113		314,935
Home equity lines of credit	396		267		405		1,068		91,945		93,013
Consumer, indirect	3,574		714		370		4,658		412,469		417,127
Consumer, direct	459		53		27		539		70,313		70,852
Consumer	4,033		767		397		5,197		482,782		487,979
Deposit account overdrafts	—		—		—		—		878		878
Total originated loans	$	11,468	$	2,569	$	11,332	$	25,369	$	2,248,470	$	2,273,839
Acquired loans:
Construction	$	5	$	—	$	411	$	416	$	4,819	$	5,235
Commercial real estate, other	301		325		1,069		1,695		159,967		161,662
Commercial real estate	306		325		1,480		2,111		164,786		166,897
Commercial and industrial	303		20		250		573		40,245		40,818
Residential real estate	6,051		1,687		2,768		10,506		336,035		346,541
Home equity lines of credit	246		243		628		1,117		38,574		39,691
Consumer, indirect	—		—		—		—		58		58
Consumer, other	160		64		85		309		5,372		5,681
Consumer	160		64		85		309		5,430		5,739
Total acquired loans	$	7,066	$	2,339	$	5,211	$	14,616	$	585,070	$	599,686
Total loans	$	18,534	$	4,908	$	16,543	$	39,985	$	2,833,540	$	2,873,525

	Loans Past Due								Current		Total
(Dollars in thousands)	30 – 59 days		60 – 89 days		90 + Days		Total
2018
Originated loans:
Construction	$	—	$	—	$	710	$	710	$	123,303	$	124,013
Commercial real estate, other	12		736		7,151		7,899		624,301		632,200
Commercial real estate	12		736		7,861		8,609		747,604		756,213
Commercial and industrial	1,678		3,520		1,297		6,495		523,712		530,207
Residential real estate	4,457		1,319		2,595		8,371		288,489		296,860
Home equity lines of credit	531		30		431		992		92,334		93,326
Consumer, indirect	3,266		488		165		3,919		403,248		407,167
Consumer, direct	308		50		42		400		71,274		71,674
Consumer	3,574		538		207		4,319		474,522		478,841
Deposit account overdrafts	—		—		—		—		583		583
Total originated loans	$	10,252	$	6,143	$	12,391	$	28,786	$	2,127,244	$	2,156,030
Acquired loans:
Construction	$	511	$	—	$	—	$	511	$	11,893	$	12,404
Commercial real estate, other	523		457		233		1,213		183,498		184,711
Commercial real estate	1,034		457		233		1,724		195,391		197,115
Commercial and industrial	111		13		18		142		35,395		35,537
Residential real estate	6,124		1,823		1,885		9,832		287,105		296,937
Home equity lines of credit	238		233		534		1,005		39,648		40,653
Consumer, indirect	—		—		—		—		136		136
Consumer, direct	23		6		—		29		2,341		2,370
Consumer	23		6		—		29		2,477		2,506
Total acquired loans	$	7,530	$	2,532	$	2,670	$	12,732	$	560,016	$	572,748
Total loans	$	17,782	$	8,675	$	15,061	$	41,518	$	2,687,260	$	2,728,778

Loans By Risk Category

The following tables summarize the risk category of Peoples' loan portfolio based upon the most recent analysis performed at December 31:

	Pass Rated		Special Mention		Substandard		Doubtful		Not Rated		Total
(Dollars in thousands)	(Grades 1 – 4)		(Grade 5)		(Grade 6)		(Grade 7)
2019
Originated loans:
Construction	$	81,771	$	—	$	—	$	—	$	1,512	$	83,283
Commercial real estate, other	640,745		12,130		18,694		7		—		671,576
Commercial real estate	722,516		12,130		18,694		7		1,512		754,859
Commercial and industrial	601,578		7,821		12,776		—		—		622,175
Residential real estate	17,713		916		15,488		159		280,659		314,935
Home equity lines of credit	1,348		—		—		—		91,665		93,013
Consumer, indirect	—		—		—		—		417,127		417,127
Consumer, direct	26		—		—		—		70,826		70,852
Consumer	26		—		—		—		487,953		487,979
Deposit account overdrafts	—		—		—		—		878		878
Total originated loans	$	1,343,181	$	20,867	$	46,958	$	166	$	862,667	$	2,273,839

	Pass Rated		Special Mention		Substandard		Doubtful		Not Rated		Total
(Dollars in thousands)	(Grades 1 – 4)		(Grade 5)		(Grade 6)		(Grade 7)
2019
Acquired loans:
Construction	$	3,578	$	150	$	1,507	$	—	$	—	$	5,235
Commercial real estate, other	146,973		5,442		9,164		83		—		161,662
Commercial real estate	150,551		5,592		10,671		83		—		166,897
Commercial and industrial	35,508		1,595		3,715		—		—		40,818
Residential real estate	32,193		2,468		4,436		125		307,319		346,541
Home equity lines of credit	1,812		154		—		—		37,725		39,691
Consumer, indirect	—		—		—		—		58		58
Consumer, direct	26		—		—		—		5,655		5,681
Consumer	26		—		—		—		5,713		5,739
Total acquired loans	$	220,090	$	9,809	$	18,822	$	208	$	350,757	$	599,686
Total loans	$	1,563,271	$	30,676	$	65,780	$	374	$	1,213,424	$	2,873,525
2018
Originated loans:
Construction	$	121,457	$	—	$	1,472	$	—	$	1,084	$	124,013
Commercial real estate, other	612,099		10,898		9,203		—		—		632,200
Commercial real estate	733,556		10,898		10,675		—		1,084		756,213
Commercial and industrial	476,290		45,990		7,692		—		235		530,207
Residential real estate	14,229		500		11,971		409		269,751		296,860
Home equity lines of credit	453		—		—		—		92,873		93,326
Consumer, indirect	8		—		—		—		407,159		407,167
Consumer, direct	30		—		—		—		71,644		71,674
Consumer	38		—		—		—		478,803		478,841
Deposit account overdrafts	—		—		—		—		583		583
Total originated loans	$	1,224,566	$	57,388	$	30,338	$	409	$	843,329	$	2,156,030
Acquired loans:
Construction	$	8,976	$	1,795	$	1,633	$	—	$	—	$	12,404
Commercial real estate, other	169,260		7,241		8,114		96		—		184,711
Commercial real estate	178,236		9,036		9,747		96		—		197,115
Commercial and industrial	32,471		2,008		1,058		—		—		35,537
Residential real estate	17,370		1,938		2,033		137		275,459		296,937
Home equity lines of credit	33		—		—		—		40,620		40,653
Consumer, indirect	4		—		—		—		132		136
Consumer, direct	31		—		—		—		2,339		2,370
Consumer	35		—		—		—		2,471		2,506
Total acquired loans	$	228,145	$	12,982	$	12,838	$	233	$	318,550	$	572,748
Total loans	$	1,452,711	$	70,370	$	43,176	$	642	$	1,161,879	$	2,728,778

Schedule Of Impaired Loans

The following table summarizes loans classified as impaired at December 31:

	Unpaid Principal Balance		Recorded Investment				Total Recorded Investment				Average Recorded Investment		Interest Income Recognized
			With		Without				Related Allowance
(Dollars in thousands)			Allowance		Allowance
2019
Construction	$	1,509	$	—	$	1,423	$	1,423	$	—	$	1,297	$	44
Commercial real estate, other	14,519		4,754		8,829		13,583		430		13,210		475
Commercial real estate	16,028		4,754		10,252		15,006		430		14,507		519
Commercial and industrial	6,018		2,294		2,829		5,123		698		3,205		160
Residential real estate	26,581		123		24,566		24,689		15		23,370		1,436
Home equity lines of credit	1,583		414		1,170		1,584		9		1,384		92
Consumer, indirect	767		298		494		792		53		359		33
Consumer, direct	387		55		329		384		7		200		21
Consumer	1,154		353		823		1,176		60		559		54
Total	$	51,364	$	7,938	$	39,640	$	47,578	$	1,212	$	43,025	$	2,261
2018
Construction	$	2,376	$	—	$	2,376	2,376		$	—	$	1,732	$	74
Commercial real estate, other	15,464		274		14,946		15,220		119		14,043		455
Commercial real estate	17,840		274		17,322		17,596		119		15,775		529
Commercial and industrial	3,305		790		2,436		3,226		157		2,423		72
Residential real estate	25,990		644		24,034		24,678		154		22,769		1,134
Home equity lines of credit	2,291		424		1,869		2,293		73		1,832		109
Consumer, indirect	496		—		503		503		—		278		15
Consumer, direct	79		22		57		79		6		63		20
Consumer	575		22		560		582		6		341		35
Total	$	50,001	$	2,154	$	46,221	$	48,375	$	509	$	43,140	$	1,879

Troubled Debt Restructurings on Financing Receivables

The following table summarizes the loans that were modified as TDRs during the years ended December 31, 2019 and 2018.

		Recorded Investment (1)
(Dollars in thousands)	Number of Contracts	Pre-Modification		Post-Modification		Remaining Recorded Investment
2019
Originated loans:
Commercial and industrial	2	$	38	$	38	$	32
Residential real estate	3	437		440		431
Home equity lines of credit	4	139		139		136
Consumer, indirect	17	260		260		234
Consumer, direct	3	52		52		45
Consumer	20	312		312		279
Total	29	$	926	$	929	$	878
Acquired loans:
Commercial real estate	3	$	101	$	76	$	76
Commercial and industrial	5	1,557		1,557		1,464
Residential real estate	38	2,069		2,069		1,967
Home equity lines of credit	8	172		173		164
Consumer, direct	10	124		124		114
Total	64	$	4,023	$	3,999	$	3,785
2018
Originated loans:
Commercial and industrial	1	$	714	$	714	$	714
Residential real estate	9	904		904		899
Home equity lines of credit	8	666		666		660
Consumer, indirect	27	485		485		412
Consumer, direct	5	32		32		29
Consumer	32	517		517		441
Total	50	$	2,801	$	2,801	$	2,714
Acquired loans:
Construction	1	$	50	$	50	$	45
Residential real estate	15	1,258		1,258		1,226
Home equity lines of credit	6	196		196		193
Total	22	$	1,504	$	1,504	$	1,464
(1) 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 loan losses in the periods ended December 31 were as follows:

(Dollars in thousands)	Commercial Real Estate		Commercial and Industrial		Residential Real Estate		Home Equity Lines of Credit		Consumer, indirect		Consumer, direct		Deposit Account Overdrafts		Total
Balance, January 1, 2019	$	8,003	$	6,178	$	1,214	$	618	$	3,214	$	351	$	81	$	19,659
Charge-offs	(153)		(1,062)		(312)		(55)		(1,829)		(211)		(851)		(4,473)
Recoveries	151		2,415		229		11		270		52		205		3,333
Net (charge-offs) recoveries	(2)		1,353		(83)		(44)		(1,559)		(159)		(646)		(1,140)
(Recovery of) provision for loan losses	(668)		901		60		(28)		1,282		102		659		2,308
Balance, December 31, 2019	$	7,333	$	8,432	$	1,191	$	546	$	2,937	$	294	$	94	$	20,827
Balance, January 1, 2018	$	7,797	$	5,813	$	904	$	693	$	2,944	$	464	$	70	$	18,685
Charge-offs	(849)		(38)		(355)		(107)		(2,515)		(358)		(965)		(5,187)
Recoveries	60		18		232		14		474		140		205		1,143
Net charge-offs	(789)		(20)		(123)		(93)		(2,041)		(218)		(760)		(4,044)
Provision for loan losses	995		385		433		18		2,311		105		771		5,018
Balance, December 31, 2018	$	8,003	$	6,178	$	1,214	$	618	$	3,214	$	351	$	81	$	19,659

Allowance for Loan Losses Acquired Loans [Table Text Block]

The following table presents activity in the allowance for loan losses for acquired loans as of December 31:

(Dollars in thousands)	2019		2018
Nonimpaired loans:
Balance, January 1	$	383	$	—
Charge-offs	(3)		—
Provision for loan losses	215		383
Balance, December 31	$	595	$	383
Purchased credit impaired loans:
Balance, January 1	$	153	$	108
Charge-offs	—		(2)
(Recovery of) provision for loan losses	(19)		47
Balance, December 31	$	134	$	153

Allowance for loan losses and recorded investment in loans disaggregated based on impairment method

The following table details the recorded investment and allowance for originated loan losses disaggregated based on impairment method:

(Dollars in thousands)	Commercial Real Estate		Commercial and Industrial		Residential Real Estate		Home Equity Lines of Credit		Consumer Indirect		Consumer Direct		Deposit Account Overdrafts		Total
2019
Allowance for loan losses allocated to:
Loans individually evaluated for impairment	$	430	$	698	$	15	$	9	$	53	$	7	$	—	$	1,212
Loans collectively evaluated for impairment	6,903		7,734		1,176		537		2,884		287		94		19,615
Ending balance	$	7,333	$	8,432	$	1,191	$	546	$	2,937	$	294	$	94	$	20,827
Recorded investment in:
Loans individually evaluated for impairment	$	15,006	$	5,123	$	24,689	$	1,584	$	792	$	384	$	—	$	47,578
Loans collectively evaluated for impairment	739,853		617,052		290,246		91,429		416,335		70,468		878		2,226,261
Ending balance	$	754,859	$	622,175	$	314,935	$	93,013	$	417,127	$	70,852	$	878	$	2,273,839
2018
Allowance for loan losses allocated to:
Loans individually evaluated for impairment	$	119	$	157	$	154	$	73	$	—	$	6	$	—	$	509
Loans collectively evaluated for impairment	7,884		6,021		1,060		545		3,214		345		81		19,150
Ending balance	$	8,003	$	6,178	$	1,214	$	618	$	3,214	$	351	$	81	$	19,659
Recorded investment in:
Loans individually evaluated for impairment	$	17,596	$	3,226	$	24,678	$	2,293	$	503	$	79	$	—	$	48,375
Loans collectively evaluated for impairment	738,617		526,981		272,182		91,033		406,664		71,595		583		2,107,655
Ending balance	$	756,213	$	530,207	$	296,860	$	93,326	$	407,167	$	71,674	$	583	$	2,156,030