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Loans (Narrative) (Details) - USD ($)
$ in Thousands

3 Months Ended

9 Months Ended

Sep. 30, 2020

Jan. 01, 2020

Dec. 31, 2019

Accounts, Notes, Loans and Financing Receivable [Line Items]

Loans, net of deferred fees and costs (b)(c)

$ 3,472,085

$ 2,876,147

$ 2,873,525

Loans

Peoples' loan portfolio consists of various types of loans originated primarily as a result of lending opportunities within Peoples' primary market areas of northeastern, central, southwestern and southeastern Ohio, central and eastern Kentucky and west central West Virginia. Peoples also originates insurance premium finance loans nationwide through its premium finance division. Acquired loans consist of loans purchased in 2012 or thereafter. Loans that were acquired and subsequently re-underwritten are reported as originated upon execution of such credit actions (for example, renewals and increases in lines of credit).

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)	September 30, 2020		December 31, 2019
Construction	$	108,051	$	88,518
Commercial real estate, other	913,239		833,238
Commercial and industrial	1,168,134		662,993
Residential real estate	589,449		661,476
Home equity lines of credit	121,935		132,704
Consumer, indirect	491,699		417,185
Consumer, direct	79,059		76,533
Deposit account overdrafts	519		878
Total loans, at amortized cost	$	3,472,085	$	2,873,525

Commercial and industrial loan balances grew significantly compared to December 31, 2019. Peoples began participating as a Small Business Administration ("SBA") Paycheck Protection Program ("PPP") lender during the second quarter of 2020, and originated $488.9 million of PPP loans during the first nine months of 2020. At September 30, 2020, the PPP loans had an amortized cost of $460.4 million, and were included in commercial and industrial loan balances. Peoples recorded deferred loan origination fees related to the PPP loans, net of deferred loan origination costs, which totaled $11.6 million at September 30, 2020. During the third quarter of 2020, Peoples recorded amortization of net deferred loan origination fees of $1.9 million on PPP loans. The remaining net deferred loan origination fees will be amortized over the life of the respective loans, or until forgiven by the SBA, and will be recognized in net interest income.

Accrued interest receivable is not included within the loan balances, but is presented in the “Other assets” line of the Unaudited Consolidated Balance Sheets, with no recorded allowance for credit losses. Interest receivable on loans was $10.2 million at September 30, 2020 and $9.1 million at December 31, 2019.

Nonaccrual and Past Due Loans

A loan is considered past due if any required principal and interest payments have not been received as of the date such payments were required to be made under the terms of the loan agreement. A loan may be placed on nonaccrual status regardless of whether or not such loan is considered past due.

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


	September 30, 2020				December 31, 2019
(Dollars in thousands)	Nonaccrual (a)(b)		Accruing Loans 90+ Days Past Due		Nonaccrual (a)		Accruing Loans 90+ Days Past Due (b)
Construction	$	4	$	—	$	411	$	—
Commercial real estate, other	9,534		80		6,801		907
Commercial and industrial	6,317		74		2,155		155
Residential real estate	8,508		2,548		6,361		2,677
Home equity lines of credit	919		27		1,165		108
Consumer, indirect	961		86		840		—
Consumer, direct	193		—		48		85
Total loans, at amortized cost	$	26,436	$	2,815	$	17,781	$	3,932

(a) There were $1.3 million of nonaccrual loans for which there was no allowance for credit losses as of September 30, 2020 and $3.1 million at December 31, 2019.

(b) The new accounting for purchased credit deteriorated loans under ASU 2016-13 resulted in the movement of $3.9 million of loans from the 90+ days past due and accruing category to the nonaccrual category as of January 1, 2020. At December 31, 2019, these loans were presented as 90+ days past due and accruing.

During the third quarter of 2020, nonaccrual loans increased compared to June 30, 2020, mostly due to a single commercial relationship of $1.8 million that was placed on nonaccrual. As of September 30, 2020, Peoples had made short-term modifications, such as payment deferrals, fee waivers, extensions of repayment terms, or other delays in payment for current borrowers, which were insignificant. Under the CARES Act, borrowers that are considered current are those that are less than 30 days past due on their contractual payments at the time a modification program is implemented. As such, these modifications made under the CARES Act are not included in Peoples' nonaccrual or accruing loans 90+ days past due as of September 30, 2020.

The new accounting for purchased credit deteriorated loans under ASU 2016-13 resulted in the movement of $3.9 million of loans from the 90+ days past due and accruing category to the nonaccrual category as of January 1, 2020. As of December 31, 2019, these loans were presented as 90+ days past due and accruing. Although they were not accruing contractual interest income, they were accreting income from the discount that was recognized due to acquisition accounting. The additional increase in nonaccrual loans at September 30, 2020, compared to December 31, 2019, was due to two commercial relationships aggregating $3.3 million and several smaller commercial relationships being placed on nonaccrual. The amount of interest income recognized on nonaccrual loans during the three and nine months ended September 30, 2020 was $377,000 and $1.2 million, respectively.

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
September 30, 2020
Construction	$	—	$	—	$	4	$	4	$	108,047	$	108,051
Commercial real estate, other	1,353		267		9,039		10,659		902,580		913,239
Commercial and industrial	330		286		4,594		5,210		1,162,924		1,168,134
Residential real estate	1,517		2,113		5,598		9,228		580,221		589,449
Home equity lines of credit	66		195		712		973		120,962		121,935
Consumer, indirect	2,199		286		336		2,821		488,878		491,699
Consumer, direct	141		163		104		408		78,651		79,059
Deposit account overdrafts	—		—		—		—		519		519
Total loans, at amortized cost	$	5,606	$	3,310	$	20,387	$	29,303	$	3,442,782	$	3,472,085
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 a $1.5 million commercial relationship. Delinquency trends remained stable, as 99.2% of Peoples' portfolio was considered “current” at September 30, 2020, compared to 98.6% at December 31, 2019.

Pledged Loans

Peoples has pledged certain loans secured by one-to-four family and multifamily residential mortgages, and home equity lines of credit under a blanket collateral agreement to secure borrowings from the FHLB. Peoples also has pledged commercial loans to secure borrowings with the FRB. Loans pledged are summarized as follows:


(Dollars in thousands)	September 30, 2020		December 31, 2019
Loans pledged to FHLB	$	742,023	$	458,227
Loans pledged to FRB	188,354		172,693

During 2020, Peoples pledged additional collateral to the FHLB and FRB to secure potential funding needs in light of the COVID-19 pandemic, as well as to fund the PPP loan originations that occurred during the year.

Credit Quality Indicators

As discussed in "Note 1 Summary of Significant Accounting Policies" of the Notes to the Consolidated Financial Statements included in Peoples' 2019 Form 10-K, Peoples categorizes the majority of its loans into risk categories based upon an established risk grading matrix using a scale of 1 to 8. Loan grades are assigned at the time a new loan or lending commitment is extended by Peoples and may be changed at any time when circumstances warrant. Loans to borrowers with an aggregate unpaid principal balance in excess of $1.0 million are reviewed at least on an annual basis for possible credit deterioration. Loan relationships whose aggregate credit exposure to Peoples is equal to or less than $1.0 million are reviewed on an event driven basis. Triggers for review include knowledge of adverse events affecting the borrower's business, receipt of financial statements indicating deteriorating credit quality or other similar events. Adversely classified loans are reviewed on a quarterly basis. A description of the general characteristics of the risk grades used by Peoples is as follows:

“Pass” (grades 1 through 4): Loans in this risk category involve borrowers of acceptable-to-strong credit quality and risk who have the apparent ability to satisfy their loan obligations. Loans in this risk grade would possess sufficient mitigating

factors, such as adequate collateral or strong guarantors possessing the capacity to repay the loan if required, for any weakness that may exist.

“Special Mention” (grade 5): Loans in this risk grade are the equivalent of the regulatory definition of “Other Assets Especially Mentioned.” Loans in this risk category possess some credit deficiency or potential weakness, which requires a high level of management attention. Potential weaknesses include declining trends in operating earnings and cash flows and/or reliance on a secondary source of repayment. If left uncorrected, these potential weaknesses may result in noticeable deterioration of the repayment prospects for the loan or in Peoples' credit position.

“Substandard” (grade 6): Loans in this risk grade are inadequately protected by the borrower's current financial condition and payment capability or the collateral pledged, if any. Loans so classified have one or more well-defined weaknesses that jeopardize the orderly repayment of the loan. They are characterized by the distinct possibility that Peoples will sustain some loss if the deficiencies are not corrected.

“Doubtful” (grade 7): Loans in this risk grade have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or orderly repayment in full, on the basis of current existing facts, conditions and values, highly questionable and improbable. Possibility of loss is extremely high, but because of certain important and reasonably specific factors that may work to the advantage and strengthening of the exposure, classification of the loan as an estimated loss is deferred until its more exact status may be determined.

“Loss” (grade 8): Loans in this risk grade are considered to be non-collectible and of such little value that their continuance as bankable assets is not warranted. This does not mean a loan has absolutely no recovery value, but rather it is neither practical nor desirable to defer writing off the loan, even though partial recovery may be obtained in the future. Charge-offs against the allowance for credit losses are taken during the period in which the loan becomes uncollectible. Consequently, Peoples typically does not maintain a recorded investment in loans within this category.

Consumer loans and other smaller-balance loans are evaluated and categorized as “substandard,” or “loss” based upon the regulatory definition of these classes and consistent with regulatory requirements. All other loans not evaluated individually, nor meeting the regulatory conditions to be categorized as described above, would be considered as being “pass" for disclosure purposes.

The following table summarizes the risk category of loans within Peoples' loan portfolio based upon the most recent analysis performed at September 30, 2020:



(Dollars in thousands)	2020		2019		2018		2017		2016		Prior		Revolving Loans		Revolving Loans Converted to Term		Total Loans
Construction
Pass	$	25,197	$	42,715	$	2,958	$	14,650	$	1,146	$	17,668	$	446	$	3,311	$	104,780
Special mention	—		1,378		475		—		—		144		—		475		1,997
Substandard	—		—		—		195		—		730		349		—		1,274


Total	25,197		44,093		3,433		14,845		1,146		18,542		795		3,786		108,051
Commercial real estate, other
Pass	89,909		99,713		99,193		99,656		112,043		220,567		126,990		27,562		848,071
Special mention	61		4,822		1,118		3,809		5,102		7,206		2,025		182		24,143
Substandard	—		1,547		822		2,854		1,973		31,972		1,857		47		41,025


Total	89,970		106,082		101,133		106,319		119,118		259,745		130,872		27,791		913,239
Commercial and industrial
Pass	495,729		92,863		75,491		40,026		49,385		170,044		206,382		27,217		1,129,920
Special mention	755		1,712		3,448		123		269		1,397		13,367		51		21,071
Substandard	2,337		1,665		1,439		1,977		300		4,014		3,638		2,722		15,370
Doubtful	—		—		—		—		—		1,773		—		—		1,773

Total	498,821		96,240		80,378		42,126		49,954		177,228		223,387		29,990		1,168,134
Residential real estate
Pass	29,893		44,275		27,806		32,183		45,532		306,390		86,801		227		572,880
Special mention	—		—		—		—		—		1		—		—		1
Substandard	—		—		—		—		—		15,962		126		—		16,088
Doubtful	—		—		—		—		—		297		—		—		297
Loss	—		—		—		—		—		183		—		—		183
Total	29,893		44,275		27,806		32,183		45,532		322,833		86,927		227		589,449
Home equity lines of credit
Pass	11,065		13,802		13,087		14,651		11,751		43,776		13,803		4,025		121,935




Total	11,065		13,802		13,087		14,651		11,751		43,776		13,803		4,025		121,935
Consumer, indirect
Pass	169,220		102,067		80,906		45,867		20,583		15,417		57,639		—		491,699




Total	169,220		102,067		80,906		45,867		20,583		15,417		57,639		—		491,699
Consumer, direct
Pass	25,239		18,257		12,834		5,427		3,249		5,256		8,797		—		79,059




Total	25,239		18,257		12,834		5,427		3,249		5,256		8,797		—		79,059
Deposit account overdrafts	519		—		—		—		—		—		—		—		519
Total loans, at amortized cost	$	849,924	$	424,816	$	319,577	$	261,418	$	251,333	$	842,797	$	522,220	$	65,819	$	3,472,085

During the third quarter of 2020, Peoples downgraded several relationships due to the COVID-19 pandemic. The COVID-related downgrades contributed to increases of $17.5 million of additional criticized loans and $9.3 million of additional classified loans compared to balances at June 30, 2020. At September 30, 2020, Peoples had a total of $1.8 million of loans secured by residential real estate mortgages that were in the process of foreclosure.

Collateral Dependent Loans

Peoples has certain loans for which repayment is dependent upon the operation or sale of collateral, as the borrower is experiencing financial difficulty. The underlying collateral can vary based upon the type of loan. The following provides more detail about the types of collateral that secure collateral dependent loans:

•Commercial real estate loans can be secured by either owner occupied commercial real estate or non-owner occupied investment commercial real estate. Typically, owner occupied commercial real estate loans are secured by office buildings, warehouses, manufacturing facilities and other commercial and industrial properties occupied by operating companies. Non-owner occupied commercial real estate loans are generally secured by office buildings and complexes, retail facilities, multifamily complexes, land under development, industrial properties, as well as other commercial or industrial real estate.

•Residential real estate loans are typically secured by first mortgages, and in some cases could be secured by a second mortgage.

•Home equity lines of credit are generally secured by second mortgages on residential real estate property.

•Consumer loans are generally secured by automobiles, motorcycles, recreational vehicles and other personal property. Some consumer loans are unsecured and have no underlying collateral.

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


(Dollars in thousands)	September 30, 2020		December 31, 2019


Commercial real estate, other	$	8,999		$	6,818
Commercial and industrial	6,487			1,962
Residential real estate	1,971			1,847
Home equity lines of credit	406			681
Consumer, indirect	—			713
Consumer, direct	—			94
Total collateral dependent loans	$	17,863		$	12,115

The increase in collateral dependent commercial and industrial loans at September 30, 2020 compared to December 31, 2019 was mostly due to one commercial relationship that became collateral dependent, coupled with some smaller relationships. In addition, the increase in collateral dependent consumer loans was driven by a change in the policy threshold for evaluation of individually impaired loans, which was previously $100,000 and on January 1, 2020 was changed to $250,000, thereby reducing the amount of loans considered collateral dependent which were no longer above the threshold.

The following tables summarize the loans that were modified as TDRs during the three months and nine months ended September 30:


		Three Months Ended
		Recorded Investment (a)
(Dollars in thousands)	Number of Contracts	Pre-Modification		Post-Modification		Remaining Recorded Investment
September 30, 2020

Commercial real estate, other	3	$	2,214	$	2,214	$	1,112
Commercial and industrial	4	3,657		3,657		3,658
Residential real estate	10	608		608		608
Home equity lines of credit	3	68		68		68
Consumer, indirect	11	126		126		126
Consumer - direct	2	16		16		16
Consumer	13	142		142		142
Total	33	$	6,689	$	6,689	$	5,588

September 30, 2019
Originated loans:




Consumer, indirect	15	$	205	$	205	$	205


Total	15	$	205	$	205	$	205
Acquired loans:



Residential real estate	1	$	70	$	70	$	70




Total	1	$	70	$	70	$	70
(a) 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.


		Nine Months Ended
		Recorded Investment (a)
(Dollars in thousands)	Number of Contracts	Pre-Modification		Post-Modification		Remaining Recorded Investment
September 30, 2020

Commercial real estate, other	5	$	2,533	$	2,533	$	1,430
Commercial and industrial	5	3,803		3,803		3,804
Residential real estate	16	1,237		1,267		1,261
Home equity lines of credit	7	123		123		121
Consumer, indirect	23	235		235		216
Consumer, direct	5	68		68		63
Consumer	28	303		303		279
Total	61	$	7,999	$	8,029	$	6,895

September 30, 2019
Originated loans:

Commercial and industrial	2	$	38	$	38	$	34
Residential real estate	3	437		440		434
Home equity lines of credit	4	139		139		137
Consumer, indirect	23	328		328		312
Consumer, direct	3	52		52		48
Consumer	26	380		380		360
Total	35	$	994	$	997	$	965
Acquired loans:

Commercial real estate, other	3	$	101	$	76	$	75
Commercial and industrial	5	1,557		1,557		1,510
Residential real estate	35	2,088		2,088		2,037
Home equity lines of credit	8	172		172		168

Consumer, direct	16	340		340		330

Total	67	$	4,258	$	4,233	$	4,120
(a) 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.

On March 22, 2020, federal and state government banking regulators issued a joint statement, with which the FASB concurred as to the approach, regarding accounting for loan modifications for borrowers affected by COVID-19. In this guidance, short-term modifications, made on a good faith basis in response to COVID-19, to borrowers who were current prior to any relief, are not considered TDRs. This includes short-term modifications such as payment deferrals, fee waivers, extensions of repayment terms, or other delays in payment which are insignificant. Under the guidance, borrowers that are considered current are those that are less than 30 days past due on their contractual payments at the time a modification program is implemented. In addition, modification or deferral programs mandated by the U.S. federal government or any state government related to COVID-19 are not in the scope of accounting for troubled debt restructurings, as defined in ASC 310-40.

The following table presents those loans modified into a TDR during the year that subsequently defaulted (i.e., 90 days or more past due following a modification during the nine-month periods ended September 30:


	September 30, 2020				September 30, 2019
(Dollars in thousands)		Number of Contracts	Recorded Investment (1)		Impact on the Allowance for Loan Losses		Number of Contracts	Recorded Investment (1)		Impact on the Allowance for Loan Losses
Commercial real estate, other		1	$	54	—		—	$	—	$	—
Consumer, direct		—	—		—		1	35		$	—
Total		1	$	54	$	—	1	$	35	$	—
(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.

Peoples had no commitments to lend additional funds to the related borrowers whose loan terms have been modified in a TDR.

Allowance for Credit Losses

Changes in the allowance for credit losses for the three months ended September 30, 2020 are summarized below:



(Dollars in thousands)	Beginning Balance, June 30, 2020		Provision for (Recovery of) Credit Losses (a)		Charge-offs		Recoveries		Ending Balance, September 30, 2020
Construction	$	2,662	$	(148)	$	—	$	—	$	2,514
Commercial real estate, other	19,148		(8)		(109)		4		19,035
Commercial and industrial	10,106		4,127		(148)		—		14,085
Residential real estate	6,380		(371)		(121)		100		5,988
Home equity lines of credit	1,755		40		—		2		1,797
Consumer, indirect	12,293		785		(370)		64		12,772
Consumer, direct	1,941		(78)		(15)		13		1,861
Deposit account overdrafts	77		154		(202)		47		76
Total	$	54,362	$	4,501	$	(965)	$	230	$	58,128

(a)Amount does not include the provision for unfunded commitment liability.

Changes in the allowance for credit losses for the nine months ended September 30, 2020 are summarized below:



(Dollars in thousands)	Beginning Balance, January 1, 2020		Initial Allowance for Purchased Credit Deteriorated Assets		Provision for Credit Losses (a)		Charge-offs		Recoveries		Ending Balance, September 30, 2020
Construction	$	600	$	51	$	1,863	$	—	$	—	$	2,514
Commercial real estate, other	7,193		1,356		10,614		(254)		126		19,035
Commercial and industrial	4,960		860		7,356		(1,100)		2,009		14,085
Residential real estate	3,977		383		1,626		(255)		257		5,988
Home equity lines of credit	1,570		2		237		(23)		11		1,797
Consumer, indirect	5,389		—		8,549		(1,427)		261		12,772
Consumer, direct	856		34		1,062		(128)		37		1,861
Deposit account overdrafts	94		—		360		(534)		156		76
Total	$	24,639	$	2,686	$	31,667	$	(3,721)	$	2,857	$	58,128

(a)Amount does not include the provision for unfunded commitment liability.

Peoples increased its allowance for credit losses based on CECL model results, which incorporated economic forecasts at the end of September 2020. The primary drivers of the increase compared to June 30, 2020, were the recent developments related to COVID-10 and the resulting impact on the economic assumptions used in estimating the allowance for credit losses under the CECL model, the addition of a specific reserve of $1.9 million related to one commercial loan relationship impacted by COVID-19 and the

$932,000 recorded to establish the allowance for credit losses related to the premium finance acquisition completed on July 1, 2020. The PPP loans originated during 2020 are guaranteed by the SBA, and therefore, had no impact on the allowance for credit losses at September 30, 2020.

The significant increase in the allowance for credit losses as of September 30, 2020 compared to January 1, 2020 was mostly due to the recent COVID-19 pandemic, and the resulting impact on economic forecasts utilized in the CECL model. Peoples calculates its allowance for credit losses using a discounted cash flow model, and incorporates economic forecasts, including U.S. unemployment, Ohio unemployment, Ohio Gross Domestic Product, and the Ohio Case Shiller Home Price Indices as economic factors. The economic forecast used in the September 30, 2020 calculation of the allowance for credit losses included higher unemployment rates and lower Ohio Gross Domestic Product than those at January 1, 2020, which drove much of the increase in the allowance for credit losses at September 30, 2020. In addition, Peoples recorded an increase of $5.8 million in allowance for credit losses on January 1, 2020 related to the implementation of ASU 2016-13.

As of September 30, 2020, the CECL model produced results, based on economic forecasts, which were higher than Peoples believed to be appropriate at the time. The majority of the modifications that were granted by Peoples early in the pandemic had expired by September 30, 2020, with the remaining requests considered minimal. Peoples' delinquency rates improved at September 30, 2020, compared to December 31, 2019. Peoples believes the actions taken to provide early relief to consumer and commercial customers, which included at least 90 days of payment relief for those customers, coupled with the CARES Act stimulus package and the SBA PPP, indicate that Peoples would not experience the projected credit losses produced by the model. Therefore, Peoples made certain qualitative adjustments to more closely reflect its estimate of the potential losses of its loan portfolio at September 30, 2020.

During the second quarter of 2020, Peoples recognized a recovery of $750,000 on a commercial and industrial loan that was previously charged-off, and recognized a similar $1.2 million recovery during the first quarter of 2020.

As of September 30, 2020, Peoples had recorded an unfunded commitment liability of $3.3 million, an increase compared to the $3.1 million at June 30, 2020, and the $1.5 million that was recorded on January 1, 2020. The increase in the unfunded commitment liability was mostly related to the higher unadvanced portions of commercial lines of credit, as the utilization rate by customers declined compared to prior periods. The unfunded commitment liability is presented in the “Accrued expenses and other liabilities” line of the Unaudited Consolidated Balance Sheets.

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, 2020		December 31, 2019

Securing public and trust department deposits, and repurchase agreements:
Available-for-sale	$	588,634	$	527,655
Held-to-maturity	18,440		12,975
Securing additional borrowing capacity at the FHLB and the FRB:
Available-for-sale	98,003		44,618
Held-to-maturity	12,054		14,155