Loans (Tables)

3 Months Ended

Mar. 31, 2020

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, 2020		December 31, 2019
Construction	$	110,865	$	88,518
Commercial real estate, other	897,817		833,238
Commercial and industrial	654,530		662,993
Residential real estate	625,366		661,476
Home equity lines of credit	128,011		132,704
Consumer, indirect	418,066		417,185
Consumer, direct	76,172		76,533
Deposit account overdrafts	610		878
Total loans, at amortized cost	$	2,911,437	$	2,873,525

Nonaccrual and Past Due Loans

The amortized cost of loans on nonaccrual status and loans delinquent for 90 days or more and accruing were as follows:


	March 31, 2020						December 31, 2019
(Dollars in thousands)	Nonaccrual ⁽¹⁾⁽²⁾		Accruing Loans 90+ Days Past Due		Nonaccrual ⁽¹⁾		Accruing Loans 90+ Days Past Due ⁽²⁾
Construction	$	99	$	—	$	411	$	—
Commercial real estate, other	9,577		—		6,801		907
Commercial and industrial	5,010		806		2,155		155
Residential real estate	8,640		557		6,361		2,677
Home equity lines of credit	1,152		143		1,165		108
Consumer, indirect	834		—		840		—
Consumer, direct	170		37		48		85
Total loans, at amortized cost	$	25,482	$	1,543	$	17,781	$	3,932

Aging Of The Recorded Investment In Past Due Loans And Leases

The following table presents the aging of the amortized cost of past due loans:


	Loans Past Due												Current Loans	Total Loans
(Dollars in thousands)	30 - 59 days		60 - 89 days		90 + Days		Total
March 31, 2020
Construction	$	—	$	4	$	94	$	98	$	110,767	$	110,865
Commercial real estate, other	3,707		77		8,929		12,713		885,104		897,817
Commercial and industrial	2,135		42		5,472		7,649		646,881		654,530
Residential real estate	10,790		886		4,467		16,143		609,223		625,366
Home equity lines of credit	626		267		1,055		1,948		126,063		128,011
Consumer, indirect	3,046		502		330		3,878		414,188		418,066
Consumer, direct	457		84		151		692		75,480		76,172
Deposit account overdrafts	—		—		—		—		610		610
Total loans, at amortized cost	$	20,761	$	1,862	$	20,498	$	43,121	$	2,868,316	$	2,911,437
December 31, 2019
Construction	$	5	$	—	$	411	$	416	$	88,102	$	88,518
Commercial real estate, other	376		337		7,501		8,214		825,024		833,238
Commercial and industrial	2,780		312		1,244		4,336		658,657		662,993
Residential real estate	10,538		2,918		5,872		19,328		642,148		661,476
Home equity lines of credit	642		510		1,033		2,185		130,519		132,704
Consumer, indirect	3,574		714		370		4,658		412,527		417,185
Consumer, direct	619		117		112		848		75,685		76,533
Deposit account overdrafts	—		—		—		—		878		878
Total loans, at amortized cost	$	18,534	$	4,908	$	16,543	$	39,985	$	2,833,540	$	2,873,525

The increase in loans 90+ days past due, compared to December 31, 2019, was mostly due to one $2.5 million commercial relationship.

Loans By Risk Category

The following table summarizes the risk category of loans within Peoples' loan portfolio based upon the most recent analysis performed at March 31, 2020:



(Dollars in thousands)	2020		2019		2018		2017		2016		Prior		Revolving Loans		Revolving Loans Converted to Term		Total Loans
Construction
Pass	$	4,092	$	38,085	$	30,264	$	34,158	$	1,277	$	839	$	500	$	1,085	$	109,215
Special mention	—		—		—		—		—		—		152		—		152
Substandard	—		—		—		409		—		1,089		—		—		1,498

Total	4,092		38,085		30,264		34,567		1,277		1,928		652		1,085		110,865
Commercial real estate, other
Pass	34,844		123,054		83,513		107,026		114,584		261,144		122,359		20,711		846,524
Special mention	—		44		584		2,054		4,570		6,394		1,634		125		15,280
Substandard	—		930		1,076		2,198		2,086		21,000		8,604		96		35,894
Doubtful	—		—		—		—		—		119		—		—		119
Total	34,844		124,028		85,173		111,278		121,240		288,657		132,597		20,932		897,817
Commercial and industrial
Pass	27,851		115,319		86,120		53,941		54,880		89,840		203,505		32,037		631,456
Special mention	—		205		181		168		8		1,396		4,701		15		6,659
Substandard	—		2,169		1,002		3,185		470		3,578		5,428		2,147		15,832
Doubtful	—		—		—		—		7		233		343		193		583
Total	27,851		117,693		87,303		57,294		55,365		95,047		213,977		34,392		654,530
Residential real estate
Pass	8,820		51,870		33,071		37,058		54,563		368,621		71,077		190		625,080
Special mention	—		—		—		—		—		2		—		—		2
Substandard	—		—		—		—		—		210		74		—		284

Total	8,820		51,870		33,071		37,058		54,563		368,833		71,151		190		625,366
Home equity lines of credit
Pass	3,209		14,712		15,145		15,905		14,208		48,551		16,281		4,510		128,011



Total	3,209		14,712		15,145		15,905		14,208		48,551		16,281		4,510		128,011
Consumer, indirect
Pass	34,969		122,879		104,388		61,567		29,552		9,438		55,273		—		418,066



Total	34,969		122,879		104,388		61,567		29,552		9,438		55,273		—		418,066
Consumer, direct
Pass	7,736		23,732		17,511		8,038		4,697		4,335		10,123		—		76,172



Total	7,736		23,732		17,511		8,038		4,697		4,335		10,123		—		76,172
Deposit account overdrafts	610																610
Total loans, at amortized cost	$	122,131	$	492,999	$	372,855	$	325,707	$	280,902	$	816,789	$	500,054	$	61,109	$	2,911,437

Troubled Debt Restructurings on Financing Receivables

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


		Recorded Investment (1)
(Dollars in thousands)	Number of Contracts	Pre-Modification		Post-Modification		Remaining Recorded Investment
March 31, 2020
Originated loans:
Commercial real estate, other	1	$	265	$	265	$	265
Commercial and industrial	1	145		145		145

Residential real estate	3	452		483		481
Home equity lines of credit	2	41		41		41
Consumer - indirect	11	175		175		175
Consumer - direct	4	57		57		57
Total	22	$	1,135	$	1,166	$	1,164
March 31, 2019
Originated loans:

Commercial and industrial	2	$	38	$	38	$	36
Residential real estate	2	399		403		403
Home equity lines of credit	2	79		79		79
Consumer, indirect	6	72		72		72
Consumer, direct	5	37		37		37
Consumer	11	109		109		109
Total	17	$	625	$	629	$	627
Acquired loans:


Residential real estate	1	$	24	$	24	$	24
Home equity lines of credit	2	65		66		66



Total	3	$	89	$	90	$	90
(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 credit losses for the three months ended March 31, 2020:



(Dollars in thousands)	Beginning Balance, January 1, 2020		Initial Allowance for Purchased Credit Deteriorated Assets		Provision for Credit Losses		Charge-offs		Recoveries		Ending Balance, March 31, 2020
Construction	$	600	$	51	$	1,091	$	—	$	—	$	1,742
Commercial real estate, other	7,193		1,356		3,487		(10)		116		12,142
Commercial and industrial	4,960		860		2,656		(937)		1,204		8,743
Residential real estate	3,977		383		1,445		(118)		57		5,744
Home equity lines of credit	1,570		2		136		(14)		1		1,695
Consumer, indirect	5,389		—		6,085		(721)		125		10,878
Consumer, direct	856		34		961		(62)		14		1,803
Deposit account overdrafts	94		—		145		(213)		60		86
Total	$	24,639	$	2,686	$	16,006	$	(2,075)	$	1,577	$	42,833

Financing Receivables, Collateral Dependent [Table]

The following table details Peoples' amortized cost of collateral dependent loans:


(Dollars in thousands)	March 31, 2020		December 31, 2019


Commercial real estate, other	$	9,572	$	6,818
Commercial and industrial	5,791		1,962
Residential real estate	2,006		1,847
Home equity lines of credit	776		681
Consumer, indirect	—		713
Consumer, direct	—		94
Total collateral dependent loans	$	18,145	$	12,115