
(Dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
September 30, 2022
Obligations of:
U.S. Treasury and government agencies	$	178,824	$	—	$	(6,769)	$	172,055
U.S. government sponsored agencies	94,517		4		(13,606)		80,915
States and political subdivisions	270,761		21		(40,760)		230,022
Residential mortgage-backed securities	731,125		1,140		(108,204)		624,061
Commercial mortgage-backed securities	63,821		1		(11,318)		52,504
Bank-issued trust preferred securities	10,752		49		(514)		10,287

Total available-for-sale securities	$	1,349,800	$	1,215	$	(181,171)	$	1,169,844
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
September 30, 2022
Obligations of:
U.S. Treasury and government agencies	$	172,056	$	6,769	26	$	—	$	—	—	$	172,056	$	6,769
U.S. government sponsored agencies	15,861		436		16	64,479		13,170		17	80,340		13,606
States and political subdivisions	127,364		14,607		175	94,650		26,153		70	222,014		40,760
Residential mortgage-backed securities	218,695		25,434		163	393,315		82,770		84	612,010		108,204
Commercial mortgage-backed securities	6,739		543		4	44,669		10,775		19	51,408		11,318
Bank-issued trust preferred securities	7,040		460		4	946		54		1	7,986		514

Total	$	547,755	$	48,249	388	$	598,059	$	132,922	191	$	1,145,814	$	181,171
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 September 30, 2022, management concluded that no individual securities at an unrealized loss position required an allowance for credit losses. At September 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 September 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 $7.3 million at September 30, 2022 and $5.5 million at December 31, 2021.

At September 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 four positions, consisted of privately issued mortgage-backed securities with all of the underlying mortgages originated prior to 2004. Of the four positions, three positions had a fair value of less than 90% of its book value. Management analyzed the underlying credit quality of these mortgage-backed securities and concluded the unrealized losses were primarily attributable to the floating rate nature of these

investments and the low remaining number of loans underlying these securities. U.S. treasury and government agencies, U.S. government sponsored agencies, and obligations of states and political subdivisions were issued by the U.S. Treasury Department or Federal government-sponsored entities. The decline in fair values was attributable to changes in interest rates and not credit quality. Therefore, management does not consider these impaired securities.

The table below presents the amortized cost, fair value and total weighted-average yield of available-for-sale securities by contractual maturity at September 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	$	50,639		$	128,185		$	—		$	—		$	178,824
U.S. government sponsored agencies	4,542			29,812			51,880			8,283			94,517
States and political subdivisions	27,288			46,871			76,138			120,464			270,761
Residential mortgage-backed securities	23			1,657			60,007			669,438			731,125
Commercial mortgage-backed securities	3,509			901			34,262			25,149			63,821
Bank-issued trust preferred securities	—			4,252			6,500			—			10,752

Total available-for-sale securities	$	86,001		$	211,678		$	228,787		$	823,334		$	1,349,800
Fair value
Obligations of:
U.S. Treasury and government agencies	$	49,673		$	122,382		$	—		$	—		$	172,055
U.S. government sponsored agencies	4,499			27,373			42,907			6,136			80,915
States and political subdivisions	27,100			44,620			64,592			93,710			230,022
Residential mortgage-backed securities	23			1,599			53,896			568,543			624,061
Commercial mortgage-backed securities	3,501			857			28,362			19,784			52,504
Bank-issued trust preferred securities	—			4,284			6,003			—			10,287

Total available-for-sale securities	$	84,796		$	201,115		$	195,760		$	688,173		$	1,169,844
Total weighted-average yield	2.52		%	2.78		%	2.29		%	1.81		%	2.09		%


(Dollars in thousands)	Amortized Cost		Allowance for Credit Losses		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
September 30, 2022
Obligations of:
U.S. government sponsored agencies	$	59,871	$	—	$	—	$	(8,963)	$	50,908
States and political subdivisions	145,490		(238)		170		(37,969)		107,453
Residential mortgage-backed securities	111,707		—		—		(17,822)		93,885
Commercial mortgage-backed securities	90,971		—		—		(16,760)		74,211
Total held-to-maturity securities	$	408,039	$	(238)	$	170	$	(81,514)	$	326,457
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


	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
September 30, 2022
Obligations of:
U.S. government sponsored agencies	$	31,574	$	2,172	12	19,333		6,791		4	$	50,907	$	8,963
States and political subdivisions	61,133		20,820		45	42,935		17,149		22	104,068		37,969
Residential mortgage-backed securities	44,505		6,159		15	49,380		11,663		12	93,885		17,822
Commercial mortgage-backed securities	34,496		6,386		18	34,968		10,374		12	69,464		16,760
Total	$	171,708	$	35,537	90	$	146,616	$	45,977	50	$	318,324	$	81,514
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 September 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 September 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	$	—		$	19,144		$	11,172		$	29,555		$	59,871
States and political subdivisions	—			5,209			9,235			131,046			145,490
Residential mortgage-backed securities	—			1,176			—			110,531			111,707
Commercial mortgage-backed securities	—			12,172			21,312			57,487			90,971
Total held-to-maturity securities	$	—		$	37,701		$	41,719		$	328,619		$	408,039
Fair value
Obligations of:
U.S. government sponsored agencies	$	—		$	18,288		$	10,622		$	21,998		$	50,908
States and political subdivisions	—			4,812			7,638			95,003			107,453
Residential mortgage-backed securities	—			1,152			—			92,733			93,885
Commercial mortgage-backed securities	—			11,954			17,841			44,416			74,211
Total held-to-maturity securities	$	—		$	36,206		$	36,101		$	254,150		$	326,457
Total weighted-average yield	—		%	2.70		%	2.58		%	1.97		%	2.10		%


(Dollars in thousands)	September 30, 2022		December 31, 2021
FHLB stock	$	14,683	$	17,308
FRB stock	21,237		13,311
Nonqualified deferred compensation	2,008		2,240
Equity investment securities	332		344
Other investment securities	779		784
Total other investment securities	$	39,039	$	33,987

During the three months ended September 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 gain of $6,000 and $18,000, respectively. For the nine months ended September 30, 2022 and 2021, Peoples recognized a loss of $12,000 and a gain of $91,000, respectively, for the change in fair value of equity securities in "Other non-interest income".

At September 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)	September 30, 2022		December 31, 2021

Securing public and trust department deposits, and repurchase agreements:
Available-for-sale	$	891,050	$	795,496
Held-to-maturity	285,207		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	4,223		6,504
Held-to-maturity	1,284		549