
(Dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
June 30, 2022
Obligations of:
U.S. Treasury and government agencies	$	179,095	$	—	$	(3,840)	$	175,255
U.S. government sponsored agencies	92,245		4		(9,784)		82,465
States and political subdivisions	278,567		250		(29,415)		249,402
Residential mortgage-backed securities	762,511		1,678		(72,454)		691,735
Commercial mortgage-backed securities	66,465		5		(8,169)		58,301
Bank-issued trust preferred securities	10,738		63		(361)		10,440

Total available-for-sale securities	$	1,389,621	$	2,000	$	(124,023)	$	1,267,598
December 31, 2021
Obligations of:
U.S. Treasury and government agencies	$	35,609	$	12	$	(17)	$	35,604
U.S. government sponsored agencies	83,019		58		(1,338)		81,739
States and political subdivisions	259,508		3,187		(3,376)		259,319
Residential mortgage-backed securities	833,328		6,565		(11,376)		828,517
Commercial mortgage-backed securities	64,971		42		(1,494)		63,519
Bank-issued trust preferred securities	6,711		215		(131)		6,795

Total available-for-sale securities	$	1,283,146	$	10,079	$	(17,732)	$	1,275,493


	Less than 12 Months					12 Months or More					Total
(Dollars in thousands)	Fair Value		Unrealized Loss		No. of Securities	Fair Value		Unrealized Loss		No. of Securities	Fair Value		Unrealized Loss
June 30, 2022
Obligations of:
U.S. Treasury and government agencies	$	175,255	$	3,840	31	$	—	$	—	—	$	175,255	$	3,840
U.S. government sponsored agencies	69,803		8,146		19	6,658		1,638		2	76,461		9,784
States and political subdivisions	143,145		18,282		141	47,152		11,133		21	190,297		29,415
Residential mortgage-backed securities	575,723		57,557		207	91,863		14,897		24	667,586		72,454
Commercial mortgage-backed securities	40,586		5,112		18	16,608		3,057		6	57,194		8,169
Bank-issued trust preferred securities	7,221		280		4	919		81		1	8,140		361

Total	$	1,011,733	$	93,217	420	$	163,200	$	30,806	54	$	1,174,933	$	124,023
December 31, 2021
Obligations of:
U.S. Treasury and government agencies	$	16,914	$	17	6	$	—	$	—	—	$	16,914	$	17
U.S. government sponsored agencies	72,406		1,192		13	4,854		146		1	77,260		1,338
States and political subdivisions	101,397		2,075		71	30,853		1,301		11	132,250		3,376
Residential mortgage-backed securities	573,139		9,051		113	51,103		2,325		14	624,242		11,376
Commercial mortgage-backed securities	60,134		1,494		21	—		—		—	60,134		1,494
Bank-issued trust preferred securities	2,991		9		1	878		122		1	3,869		131

Total	$	826,981	$	13,838	225	$	87,688	$	3,894	27	$	914,669	$	17,732

Management evaluates available-for-sale investment securities for an allowance for credit losses on a quarterly basis. At June 30, 2022, management concluded that no individual securities at an unrealized loss position required an allowance for credit losses. At June 30, 2022, Peoples did not have the intent to sell, nor was it more likely than not that Peoples would be required to sell, any of the securities with an unrealized loss prior to recovery. Further, the unrealized losses at both June 30, 2022 and December 31, 2021 were largely attributable to changes in market interest rates and spreads since the securities were purchased, and were not credit-related losses. Accrued interest receivable is not included in investment securities balances, and is presented in the “Other assets” line of the Unaudited Consolidated Balance Sheets, with no recorded allowance for credit losses. Interest receivable on investment securities was $6.3 million at June 30, 2022 and $5.5 million at December 31, 2021.

At June 30, 2022, approximately 99% of the mortgage-backed securities with a market value that had been at an unrealized loss position for twelve months or more were issued by U.S. government sponsored agencies. The remaining 1%, or three positions, consisted of privately issued mortgage-backed securities with all of the underlying mortgages originated prior to 2004. All three positions had a fair value of less than 90% of its book value. Management analyzed the underlying credit quality of these mortgage-

The table below presents the amortized cost, fair value and total weighted-average yield of available-for-sale securities by contractual maturity at June 30, 2022. The weighted-average yields are based on the amortized cost. In some cases, the issuers may have the right to call or prepay obligations without call or prepayment penalties prior to the contractual maturity date.


(Dollars in thousands)	Within 1 Year			1 to 5 Years			5 to 10 Years			Over 10 Years			Total
Amortized cost
Obligations of:
U.S. Treasury and government agencies	$	10,071		$	169,024		$	—		$	—		$	179,095
U.S. government sponsored agencies	2,807			29,294			51,848			8,296			92,245
States and political subdivisions	19,729			55,670			69,708			133,460			278,567
Residential mortgage-backed securities	30			2,033			62,316			698,132			762,511
Commercial mortgage-backed securities	5,531			909			34,741			25,284			66,465
Bank-issued trust preferred securities	—			4,238			6,500			—			10,738

Total available-for-sale securities	$	38,168		$	261,168		$	225,113		$	865,172		$	1,389,621
Fair value
Obligations of:
U.S. Treasury and government agencies	$	9,972		$	165,283		$	—		$	—		$	175,255
U.S. government sponsored agencies	2,802			27,614			45,391			6,658			82,465
States and political subdivisions	19,757			54,919			63,328			111,398			249,402
Residential mortgage-backed securities	30			1,999			58,905			630,801			691,735
Commercial mortgage-backed securities	5,529			876			30,501			21,395			58,301
Bank-issued trust preferred securities	—			4,294			6,146			—			10,440

Total available-for-sale securities	$	38,090		$	254,985		$	204,271		$	770,252		$	1,267,598
Total weighted-average yield	3.70		%	2.18		%	1.60		%	1.96		%	1.99		%


(Dollars in thousands)	Amortized Cost		Allowance for Credit Losses		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
June 30, 2022
Obligations of:
U.S. government sponsored agencies	$	50,990	$	—	$	12	$	(6,564)	$	44,438
States and political subdivisions	151,320		(286)		153		(29,109)		122,078
Residential mortgage-backed securities	112,095		—		—		(12,125)		99,970
Commercial mortgage-backed securities	86,601		—		—		(11,999)		74,602
Total held-to-maturity securities	$	401,006	$	(286)	$	165	$	(59,797)	$	341,088
December 31, 2021
Obligations of:
U.S. government sponsored agencies	$	36,431	$	—	$	86	$	(1,004)	$	35,513
States and political subdivisions	151,688		(286)		1,006		(2,270)		150,138
Residential mortgage-backed securities	110,708		—		370		(919)		110,159
Commercial mortgage-backed securities	75,588		—		182		(1,625)		74,145
Total held-to-maturity securities	$	374,415	$	(286)	$	1,644	$	(5,818)	$	369,955

Management evaluates held-to-maturity investment securities for an allowance for credit losses on a quarterly basis. The majority of Peoples' held-to-maturity investment securities are obligations of states and political subdivisions with the remaining securities issued by U.S. government sponsored agencies. Peoples analyzed these securities using cumulative default rate averages for investment grade municipal securities. Peoples recorded $286,000 of allowance for credit losses for held-to-maturity securities at each of June 30, 2022, and December 31, 2021.


	Less than 12 Months					12 Months or More					Total
(Dollars in thousands)	Fair Value		Unrealized Loss		No. of Securities	Fair Value		Unrealized Loss		No. of Securities	Fair Value		Unrealized Loss
June 30, 2022
Obligations of:
U.S. government sponsored agencies	$	10,845	$	1,300	4	20,958		5,264		5	$	31,803	$	6,564
States and political subdivisions	87,008		20,941		58	26,097		8,168		9	113,105		29,109
Residential mortgage-backed securities	99,944		12,125		26	—		—		—	99,944		12,125
Commercial mortgage-backed securities	69,102		10,015		30	6,407		1,984		1	75,509		11,999
Total	$	266,899	$	44,381	118	$	53,462	$	15,416	15	$	320,361	$	59,797
December 31, 2021
Obligations of:
U.S. government sponsored agencies	$	17,328	$	504	6	14,635		500		2	$	31,963	$	1,004
States and political subdivisions	61,954		1,041		34	27,328		1,229		6	89,282		2,270
Residential mortgage-backed securities	88,937		919		17	—		—		—	88,937		919
Commercial mortgage-backed securities	67,338		1,625		21	—		—		—	67,338		1,625
Total	$	235,557	$	4,089	78	$	41,963	$	1,729	8	$	277,520	$	5,818

The table below presents the amortized cost, fair value and total weighted-average yield of held-to-maturity securities by contractual maturity at June 30, 2022. The weighted-average yields are based on the amortized cost and are computed on a fully taxable-equivalent basis using a blended federal and state corporate income tax rate of 23.3% and 22.3% for the periods ending June 30, 2022 and December 31, 2021, respectively. In some cases, the issuers may have the right to call or prepay obligations without call or prepayment penalties prior to the contractual maturity date.


(Dollars in thousands)	Within 1 Year			1 to 5 Years			5 to 10 Years			Over 10 Years			Total
Amortized cost
Obligations of:
U.S. government sponsored agencies	$	—		$	19,151		$	2,174		$	29,665		$	50,990
States and political subdivisions	—			5,207			9,241			136,872			151,320
Residential mortgage-backed securities	—			1,308			—			110,787			112,095
Commercial mortgage-backed securities	336			12,966			21,399			51,900			86,601
Total held-to-maturity securities	$	336		$	38,632		$	32,814		$	329,224		$	401,006
Fair value
Obligations of:
U.S. government sponsored agencies	$	—		$	18,707		$	1,918		$	23,813		$	44,438
States and political subdivisions	—			4,943			8,067			109,068			122,078
Residential mortgage-backed securities	—			1,302			—			98,668			99,970
Commercial mortgage-backed securities	335			12,893			19,065			42,309			74,602
Total held-to-maturity securities	$	335		$	37,845		$	29,050		$	273,858		$	341,088
Total weighted-average yield	1.46		%	2.11		%	1.65		%	1.85		%	1.85		%


(Dollars in thousands)	June 30, 2022		December 31, 2021
FHLB stock	$	17,308	$	17,308
FRB stock	21,226		13,311
Nonqualified deferred compensation	2,016		2,240
Equity investment securities	326		344
Other investment securities	779		784
Total other investment securities	$	41,655	$	33,987

During the three months ended June 30, 2022 and 2021, Peoples recorded the change in the fair value of equity investment securities held during the period, in "Other non-interest income", resulting in an unrealized loss of $11,000 and an unrealized gain of $18,000. For the six months ended June 30, 2022 and 2021, Peoples recognized a loss of $18,000 and a gain of $73,000, respectively, for the change in fair value of equity securities in "Other non-interest income".

At June 30, 2022, Peoples' investment in equity investment securities was comprised largely of common stocks issued by various unrelated bank holding companies. There were no equity investment securities of a single issuer that exceeded 10% of Peoples' stockholders' equity.

Peoples has pledged available-for-sale investment securities and held-to-maturity investment securities to secure public and trust department deposits, and repurchase agreements in accordance with federal and state requirements. Peoples has also pledged available-for-sale investment securities to secure additional borrowing capacity at the FHLB and the FRB as well as to derivative counterparties as collateral on unrealized interest rate swaps.


	Carrying Amount
(Dollars in thousands)	June 30, 2022		December 31, 2021

Securing public and trust department deposits, and repurchase agreements:
Available-for-sale	$	1,002,333	$	795,496
Held-to-maturity	297,880		160,643
Securing collateral for cash flow hedge swaps:
Available-for-sale	—		18,208
Held-to-maturity	—		9,936
Securing additional borrowing capacity at the FHLB and the FRB:
Available-for-sale	4,818		6,504
Held-to-maturity	1,828		549