Acquisitions (Tables)

3 Months Ended

Mar. 31, 2022

Business Combination and Asset Acquisition [Abstract]

Summary of Assets Acquired and Liabilities Assumed

The following table provides the preliminary purchase price calculation as of the date of the acquisition of Vantage, and the assets acquired and liabilities assumed at their estimated fair values. Peoples recorded the estimates of fair value based on initial valuations available at March 7, 2022. Due to the timing of the transaction closing date and the filing date for this Form 10-Q, these estimated fair values were considered preliminary as of March 31, 2022, and are subject to adjustment for up to one year after March 7, 2022. Valuations subject to change include leases, other intangible assets and borrowings.

(Dollars in thousands)	Fair Value
Total Purchase Price	$	82,893
Net assets at fair value
Assets
Cash and due from banks	$	1,444
Leases	140,346
Allowance for credit losses	(132)
Net leases	140,214
Bank premises and equipment	1,926
Other intangible assets	13,207
Other assets	1,603
Total assets	$	158,394
Liabilities
Borrowings	$	107,409
Accrued expenses and other liabilities	$	8,479
Total liabilities	$	115,888
Net assets	$	42,506
Goodwill	$	40,387

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

(Dollars in thousands)	Unpaid Principal Balance	Fair Value
Premier common shares		14,811,200
Number of common shares of Peoples issued for each common share of Premier		0.58
Price per Peoples common share, based at closing date		$	30.49
Common share consideration		261,899
Cash paid in lieu of fractional common shares		25
Total consideration		$	261,924
Net assets at fair value
Assets
Cash and due from banks		$	248,360
Interest-bearing deposits in other banks		1,025
Total cash and cash equivalents		249,385
Available-for-sale investment securities		551,953
Other investment securities		4,159
Total investment securities		556,112
Loans:
Construction	97,262	96,025
Commercial real estate, other	544,950	534,850
Commercial and industrial	132,293	132,083
Residential real estate	332,269	331,552
Home equity lines of credit	46,969	45,910
Consumer	20,961	21,513
Total loans	1,174,704	1,161,933
Allowance for credit losses (on PCD loans)		(15,988)
Net loans		1,145,945
Bank premises and equipment		30,098
Other intangible assets		4,233
OREO		11,081
Other assets		27,067
Total assets		$	2,023,921
Liabilities
Deposits:
Non-interest-bearing		$	733,157
Interest-bearing		1,018,387
Total deposits		1,751,544
Short-term borrowings		63,807
Long-term borrowings		6,070
Accrued expenses and other liabilities		7,813
Total liabilities		1,829,234
Net assets		194,687
Goodwill		$	67,237

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

(Dollars in thousands)
Total purchase price (a)	$	118,846
Net assets at fair value
Assets
Cash and due from banks	$	216
Net leases	82,833
Bank premises and equipment, net of accumulated depreciation	470
Other intangible assets	14,009
Other assets	1,225
Total assets	$	98,753
Liabilities
Accrued expenses and other liabilities	$	4,627
Total liabilities	$	4,627
Net assets	$	94,126
Goodwill	$	24,720

(a) Includes preliminary contingent consideration related to the bonus earn-out provision of $2.3 million. Peoples recorded an additional $0.7 million in non-interest expense related to an update to the estimated earn-out provision.

Summary of Goodwill

The below table reflects the changes in the estimated fair value as they impact goodwill at March 31, 2022:

(Dollars in thousands)	Change in fair value
Net assets
Net loans	$	(1,198)
Other assets	268
Change in goodwill	$	(930)

Summary of Acquired Purchased Credit Deteriorated Loans

The following table details the fair value adjustment for acquired purchased credit deteriorated loans as of the acquisition date:

(Dollars in thousands)	Par Value		Allowance for Credit Losses		Non-Credit (Discount) Premium		Fair Value
Purchased credit deteriorated loans
Construction	$	20,143	$	(2,005)	$	(214)	$	17,924
Commercial real estate, other	97,991		(9,286)		(2,112)		86,593
Commercial and industrial	11,285		(3,883)		210		7,612
Residential real estate	18,001		(685)		(250)		17,066
Home equity lines of credit	1,291		(55)		(72)		1,164
Consumer	929		(74)		37		892
Fair value	$	149,640	$	(15,988)	$	(2,401)	$	131,251

The following table details the fair value adjustment for acquired purchased credit deteriorated leases as of the acquisition date:

(Dollars in thousands)	NSL
Purchased credit deteriorated leases
Par value	$	5,248
Allowance for credit losses	(493)
Non-credit premium	85
Fair value	$	4,840