Acquisitions (Notes)

12 Months Ended

Dec. 31, 2020

Business Combination Disclosure [Text Block]

AcquisitionsEffective July 1, 2020, Peoples closed on a business combination under which Peoples Bank acquired the operations and assets of Triumph Premium Finance (referred to as "premium finance acquisition"), a division of TBK Bank, SSB. Based in Kansas City, Missouri, the division operating as Peoples Premium Finance continues to provide insurance premium financing loans for commercial

customers to purchase property and casualty insurance products through its growing network of independent insurance agency partners nationwide.

The following table provides the purchase price calculation as of the date of acquisition, and the assets acquired and liabilities assumed at their estimated fair values.


(Dollars in thousands, except per share data)
Total purchase price	$	94,526


Net Assets at Fair Value
Assets
Cash and due from banks	$	509
Loans, net of deferred fees and costs	84,704
Bank premises and equipment, net of accumulated depreciation	45
Customer relationship intangible assets	4,280
Other assets	11
Total assets	$	89,549
Liabilities
Accrued expenses and other liabilities	$	479
Total liabilities	$	479
Net assets	$	89,070
Goodwill	$	5,456

The accounting for the premium finance acquisition has been completed. The estimated fair values presented in the above table reflect additional information that was obtained during the three months ended December 31, 2020, which resulted in changes to certain fair value estimates made as of the date of acquisition. Adjustments to acquisition date estimated fair values are recorded during the period in which they occur and, as a result, previously recorded results have changed. The below table reflects the changes in the estimated fair value at December 31, 2020 from balances reported at September 30, 2020:


(Dollars in thousands)	Change in Fair Value
Net assets


Loans	$	(113)

Customer relationship intangible assets	108


Change in goodwill	$	(5)

Peoples recorded a customer relationship intangible of $4.3 million. Peoples expects to amortize the intangible over 10 years, and recorded $310,000 of intangible amortization during 2020.

As of the acquisition date, Peoples estimated an allowance for credit losses of $923,000 for the acquired loans through the income statement, which was included in the provision for credit losses during the third quarter of 2020.

Acquired loans 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)	Triumph Premium Finance
Nonimpaired Loans
Contractual cash flows	$	84,968
Nonaccretable difference	(179)
Expected cash flows	85,147
Accretable yield	443
Fair value	$	84,704

On January 1, 2020, Peoples Insurance acquired a property and casualty-focused independent insurance agency for a purchase price amount equal to $866,000, and recorded $735,000 of customer relationship intangibles, and $27,000 of other assets, resulting in $104,000 of goodwill. The acquisition will not materially impact Peoples' financial position, results of operations or cash flows. As of December 31, 2020, Peoples had $339,000 of contingent consideration payable related to the acquisition.