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Loans and Leases (Tables)
 9 Months Ended
Sep. 30, 2022
Receivables [Abstract]  
Summary of Loans by Classification
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,
2022		December 31, 2021
Construction$215,621 $210,232 
Commercial real estate, other1,423,479 1,550,081 
Commercial and industrial877,472 891,392 
Premium finance167,682 136,136 
Leases312,847 122,508 
Residential real estate733,361 771,718 
Home equity lines of credit174,525 163,593 
Consumer, indirect592,309 530,532 
Consumer, direct113,314 104,652 
Deposit account overdrafts597 756 
Total loans, at amortized cost$4,611,207 $4,481,600 
Nonaccrual and Past Due Loans
The amortized cost of loans on nonaccrual status and of loans delinquent for 90 days or more and accruing was as follows:
September 30, 2022December 31, 2021
(Dollars in thousands)
Nonaccrual (a)
Accruing Loans 90+ Days Past Due
Nonaccrual (a)
Accruing Loans 90+ Days Past Due
Construction$2 $— $6 $90 
Commercial real estate, other11,916 1,472 17,067 689 
Commercial and industrial2,385 266 3,572 1,139 
Premium finance— 308 — 865 
Leases2,094 4,654 1,581 — 
Residential real estate8,728 1,499 9,647 805 
Home equity lines of credit921 23 1,039 50 
Consumer, indirect1,627 195 1,574 — 
Consumer, direct158 7 279 85 
Total loans, at amortized cost$27,831 $8,424 $34,765 $3,723 
(a) There were $2.0 million of nonaccrual loans for which there was no allowance for credit losses at September 30, 2022 and $2.6 million at December 31, 2021.
Aging of The Recorded Investment In Past Due Loans and Leases
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 days60 - 89 days90 + DaysTotal
September 30, 2022
Construction$334 $25 $— $359 $215,262 $215,621 
Commercial real estate, other2,710 878 11,668 15,256 1,408,223 1,423,479 
Commercial and industrial1,742 870 2,630 5,242 872,230 877,472 
Premium finance312 287 308 907 166,775 167,682 
Leases786 2,972 6,749 10,507 302,340 312,847 
Residential real estate3,413 1,814 5,723 10,950 722,411 733,361 
Home equity lines of credit1,640 102 513 2,255 172,270 174,525 
Consumer, indirect3,912 744 628 5,284 587,025 592,309 
Consumer, direct395 54 83 532 112,782 113,314 
Deposit account overdrafts— — — — 597 597 
Total loans, at amortized cost$15,244 $7,746 $28,302 $51,292 $4,559,915 $4,611,207 
December 31, 2021
Construction$658 $— $90 $748 $209,484 $210,232 
Commercial real estate, other2,891 1,600 12,561 17,052 1,533,029 1,550,081 
Commercial and industrial1,132 1,278 3,595 6,005 885,387 891,392 
Premium finance751 266 865 1,882 134,254 136,136 
Leases426 247 1,581 2,254 120,254 122,508 
Residential real estate8,276 2,241 5,188 15,705 756,013 771,718 
Home equity lines of credit1,137 619 625 2,381 161,212 163,593 
Consumer, indirect4,220 895 615 5,730 524,802 530,532 
Consumer, direct457 135 200 792 103,860 104,652 
Deposit account overdrafts— — — — 756 756 
Total loans, at amortized cost$19,948 $7,281 $25,320 $52,549 $4,429,051 $4,481,600 
Summary of Pledged Securities
The following table summarizes the carrying value of Peoples' pledged securities:
 Carrying Amount
(Dollars in thousands)September 30, 2022December 31, 2021
Securing public and trust department deposits, and repurchase agreements:
     Available-for-sale$891,050 $795,496 
     Held-to-maturity285,207 160,643 
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-sale4,223 6,504 
     Held-to-maturity1,284 549 
Loans pledged are summarized as follows:
(Dollars in thousands)September 30, 2022December 31, 2021
Loans pledged to FHLB$793,115 $769,863 
Loans pledged to FRB405,652 294,728 
Summary of Loans by Risk Category The following table summarizes the risk category of loans within Peoples' loan portfolio, including acquired loans, based upon the most recent analysis performed at September 30, 2022:
Term Loans at Amortized Cost by Origination YearRevolving Loans Converted to Term
(Dollars in thousands)20222021202020192018PriorRevolving Loans
Total
Loans
Construction

  Pass$50,403 $109,791 $30,078 $18,033 $427 $3,251 $2,222 $81 $214,205 
  Special mention— — — — — 825 — — 825 
  Substandard— — 136 — 69 386 — — 591 
     Total50,403 109,791 30,214 18,033 496 4,462 2,222 81 215,621 
Commercial real estate, other

  Pass124,239 227,395 230,082 206,722 114,512 395,451 21,768 6,337 1,320,169 
  Special mention— 195 1,225 5,514 3,198 36,761 93 — 46,986 
  Substandard120 9,059 2,342 1,908 1,025 41,356 341 — 56,151 
  Doubtful— — — — — 173 — — 173 
     Total124,359 236,649 233,649 214,144 118,735 473,741 22,202 6,337 1,423,479 
Commercial and industrial
  Pass116,058 173,932 86,010 77,871 44,821 99,146 224,418 2,529 822,256 
  Special mention— 28 11,098 985 274 4,987 3,333 25 20,705 
  Substandard59 9,453 2,627 2,975 2,920 4,563 11,702 142 34,299 
  Doubtful— — — — — 212 — — 212 
     Total116,117 183,413 99,735 81,831 48,015 108,908 239,453 2,696 877,472 
Premium finance
Pass162,713 4,969 — — — — — — 167,682 
     Total162,713 4,969 — — — — — — 167,682 
Leases
  Pass139,715 98,250 40,078 19,569 4,440 1,513 — 303,565 
  Special mention1,639 3,776 73 24 78 — 5,590 
  Substandard575 1,693 537 424 463 — 3,692 
     Total141,929 103,719 40,688 20,017 4,981 1,513 — — 312,847 
Residential real estate
  Pass65,666 140,597 62,306 44,469 29,790 375,024 — — 717,852 
  Substandard— — — — — 15,355 — — 15,355 
   Loss— — — — — 154 — — 154 
     Total65,666 140,597 62,306 44,469 29,790 390,533 — — 733,361 
Home equity lines of credit
  Pass29,784 36,483 21,432 15,451 14,072 56,586 340 2,191 174,148 
  Substandard— — — — — 377 — — 377 
     Total29,784 36,483 21,432 15,451 14,072 56,963 340 2,191 174,525 
Consumer, indirect
  Pass229,831 165,711 112,435 41,315 27,327 15,690 — — 592,309 
     Total229,831 165,711 112,435 41,315 27,327 15,690 — — 592,309 
Consumer, direct
  Pass45,117 32,606 17,426 7,874 4,738 5,553 — — 113,314 
     Total45,117 32,606 17,426 7,874 4,738 5,553 — — 113,314 
Deposit account overdrafts597 — — — — — — — 597 
Total loans, at amortized cost$966,516 $1,013,938 $617,885 $443,134 $248,154 $1,057,363 $264,217 $11,305 $4,611,207 
The following table summarizes the risk category of loans within Peoples' loan portfolio, including acquired loans, based upon the then most recent analysis performed at December 31, 2021:
Term Loans at Amortized Cost by Origination Year
(Dollars in thousands)20212020201920182017PriorRevolving LoansRevolving Loans Converted to Term
Total
Loans
Construction

  Pass$85,276 $78,026 $29,514 $3,498 $1,233 $2,982 $2,411 $6,948 $202,940 
  Special mention290 — — 735 3,850 137 — — 5,012 
  Substandard— — 947 77 153 1,103 — — 2,280 
     Total85,566 78,026 30,461 4,310 5,236 4,222 2,411 6,948 210,232 
Commercial real estate, other

  Pass253,259 259,113 217,938 143,094 143,975 392,212 21,320 11,940 1,430,911 
  Special mention157 2,716 7,875 3,839 6,292 31,626 — 49 52,505 
  Substandard— 1,675 824 691 3,124 59,415 371 37 66,100 
  Doubtful— — — — — 542 — — 542 
  Loss— — — — — 23 — — 23 
     Total253,416 263,504 226,637 147,624 153,391 483,818 21,691 12,026 1,550,081 
Commercial and industrial
  Pass299,117 105,646 84,144 56,361 22,182 100,030 174,848 15,888 842,328 
  Special mention82 11,745 2,559 2,179 132 5,445 7,563 9 29,705 
  Substandard465 2,059 2,691 812 4,995 3,342 3,085 367 17,449 
  Doubtful— — — — — 1,648 262 100 1,910 
     Total299,664 119,450 89,394 59,352 27,309 110,465 185,758 16,364 891,392 
Premium finance
  Pass135,896 240 — — — — — — 136,136 
Total135,896 240 — — — — — — 136,136 
Leases
Pass78,048 25,954 13,368 2,972 337 — — — 120,679 
Special mention34 29 22 159 4 — — — 248 
Substandard196 438 462 479 6 — — — 1,581 
Total78,278 26,421 13,852 3,610 347 — — — 122,508 
Residential real estate
  Pass141,845 74,169 53,434 33,690 44,377 407,541 — — 755,056 
  Substandard— — — — — 16,302 — — 16,302 
   Loss— — — — — 360 — — 360 
     Total141,845 74,169 53,434 33,690 44,377 424,203 — — 771,718 
Home equity lines of credit
  Pass35,898 23,276 18,035 16,124 14,991 53,302 1,967 3,287 163,593 
     Total35,898 23,276 18,035 16,124 14,991 53,302 1,967 3,287 163,593 
Consumer, indirect
  Pass226,287 163,830 63,353 45,672 21,754 9,636 — — 530,532 
     Total226,287 163,830 63,353 45,672 21,754 9,636 — — 530,532 
Consumer, direct
  Pass47,308 26,792 13,293 8,411 3,218 5,630 — — 104,652 
     Total47,308 26,792 13,293 8,411 3,218 5,630 — — 104,652 
Deposit account overdrafts756 — — — — — — — 756 
Total loans, at amortized cost$1,304,914 $775,708 $508,459 $318,793 $270,623 $1,091,276 $211,827 $38,625 $4,481,600 
Summary of Amortized Cost of Collateral Dependent Loans
The following table details Peoples' amortized cost of collateral dependent loans:
(Dollars in thousands)September 30, 2022December 31, 2021
Construction$340 $1,291 
Commercial real estate, other9,380 37,220 
Commercial and industrial2,590 8,340 
Residential real estate2,196 2,877 
Home equity lines of credit379 391 
Total collateral dependent loans$14,885 $50,119 
Troubled Debt Restructurings on Financing Receivables
The following tables summarize the loans that were modified as TDRs during the three and nine months ended September 30:
Three Months Ended
Recorded Investment (a)
(Dollars in thousands)Number of ContractsPre-ModificationPost-ModificationRemaining Recorded Investment
September 30, 2022
Commercial and industrial1 $20 $20 $19 
Residential real estate7 323 361 354 
Home equity lines of credit2 119 119 119 
Consumer, indirect6 79 79 79 
Consumer, direct3 20 20 20 
   Consumer9 99 99 99 
Total19 $561 $599 $591 
September 30, 2021
Construction1 $6 $6 $6 
Commercial real estate, other2 14 14 14 
Commercial and industrial3 327 327 327 
Leases2 182 184 178 
Residential real estate46 1,952 1,956 1,955 
Home equity lines of credit5 55 55 55 
Consumer, indirect9 95 95 95 
Consumer, direct3 9 9 9 
   Consumer12 104 104 104 
Total71 $2,640 $2,646 $2,639 
(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 ContractsPre-ModificationPost-ModificationRemaining Recorded Investment
September 30, 2022
Commercial real estate, other3 $282 $282 $276 
Commercial and industrial6 1,309 1,313 801 
Residential real estate30 1,478 1,562 1,536 
Home equity lines of credit5 251 251 247 
Consumer, indirect19 237 237 237 
Consumer, direct6 63 63 63 
   Consumer25 300 300 300 
Total69 $3,620 $3,708 $3,160 
September 30, 2021
Construction2 $350 $350 $350 
Commercial real estate, other3 37 37 37 
Commercial and industrial3 327 327 327 
Leases5 340 348 334 
Residential real estate54 2,367 2,376 2,366 
Home equity lines of credit9 315 315 307 
Consumer, indirect16 200 200 192 
Consumer, direct8 48 48 45 
   Consumer24 248 248 237 
Total100 $3,984 $4,001 $3,958 
(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.
Summary of Activity in Allowance for Loan and Lease Losses
Changes in the allowance for credit losses for the three months ended September 30, 2022 and September 30, 2021 are summarized below:
(Dollars in thousands)
Beginning Balance, June 30, 2022
Initial Allowance for Acquired Purchased Credit Deteriorated Assets (a)Provision for Credit Losses for Acquired Non-Purchased Credit Deteriorated Assets(Recovery of) Provision for Credit Losses (b)Charge-offsRecoveries
Ending Balance, September 30, 2022
Construction$1,531 $— $— $(67)$— $— $1,464 
Commercial real estate, other18,708 — — (995)(57)39 17,695 
Commercial and industrial8,572 — — 72 (36)3 8,611 
Premium finance311 — — 279 (38)1 553 
Leases7,585 377 — 560 (731)99 7,890 
Residential real estate6,332 — — 264 (168)36 6,464 
Home equity lines of credit1,699 — — (50)(5)— 1,644 
Consumer, indirect6,234 — — 1,207 (600)71 6,912 
Consumer, direct1,321 — — 343 (81)9 1,592 
Deposit account overdrafts53 — — 218 (274)44 41 
Total$52,346 $377 $— $1,831 $(1,990)$302 $52,866 
(a)Includes purchase price adjustments related to acquisitions previously completed but within the 12-month measurement period.
(b)Amount does not include the provision for the allowance for credit losses on unfunded commitments.
(Dollars in thousands)Beginning Balance,
June 30, 2021		Initial Allowance for Acquired Purchased Credit Deteriorated AssetsProvision for Credit Losses for Acquired Non-Purchased Credit Deteriorated Assets(Recovery of) Provision for Credit Losses (a)Charge-offsRecoveriesEnding Balance, September 30, 2021
Construction$914 $2,127 $638 $(243)$— $— $3,436 
Commercial real estate, other17,233 13,374 5,384 (179)— 4 35,816 
Commercial and industrial8,686 4,286 1,059 (3)(654)4 13,378 
Premium finance998 — — 146 (7)— 1,137 
Leases3,715 — — 1,101 (431)120 4,505 
Residential real estate4,837 2,394 2,645 (312)(44)48 9,568 
Home equity lines of credit1,504 41 674 148 (180)37 2,224 
Consumer, indirect8,841 — — (2,308)(416)43 6,160 
Consumer, direct1,161 112 180 (362)(29)17 1,079 
Deposit account overdrafts53 — — 124 (135)37 79 
Total$47,942 $22,334 $10,580 $(1,888)$(1,896)$310 $77,382 
(a)Amount does not include the provision for the allowance for credit losses on unfunded commitments.
(a)Amount does not include the provision for the allowance for credit losses on unfunded commitments.
Changes in the allowance for credit losses for the nine months ended September 30, 2022 and September 30, 2021 are summarized below:
(Dollars in thousands)
Beginning Balance, December 31, 2021
Initial Allowance for Acquired Purchased Credit Deteriorated Assets (a)Provision for Credit Losses for Acquired Non-Purchased Credit Deteriorated Assets(Recovery of) Provision for Credit Losses (b)Charge-offsRecoveries
Ending Balance, September 30, 2022
Construction$2,999 $— $— $(1,535)$— $— $1,464 
Commercial real estate, other29,147 (451)— (10,908)(357)264 17,695 
Commercial and industrial11,063 (418)— (1,124)(919)9 8,611 
Premium finance379 — — 247 (82)9 553 
Leases4,797 801 — 3,650 (1,697)339 7,890 
Residential real estate7,233 (509)— 200 (524)64 6,464 
Home equity lines of credit2,005 (11)— (333)(46)29 1,644 
Consumer, indirect5,326 (41)— 2,821 (1,434)240 6,912 
Consumer, direct961 — — 877 (277)31 1,592 
Deposit account overdrafts57 — — 772 (938)150 41 
Total$63,967 $(629)$— $(5,333)$(6,274)$1,135 $52,866 
(a)Includes purchase price adjustments related to acquisitions previously completed but were within the 12-month measurement period.
(b)Amount does not include the provision for the allowance for credit losses on unfunded commitments.

(Dollars in thousands)Beginning Balance,
December 31, 2020		Initial Allowance for Acquired Purchased Credit Deteriorated AssetsProvision for Credit Losses for Acquired Non-Purchased Credit Deteriorated Assets(Recovery of) Provision for Credit Losses (a)Charge-offsRecoveries
Ending Balance, September 30, 2021
Construction$1,887 $2,127 $638 $(1,216)$— $— $3,436 
Commercial real estate, other17,536 13,374 5,384 (325)(161)8 35,816 
Commercial and industrial12,763 4,286 1,059 (3,800)(952)22 13,378 
Premium finance1,095 — — 72 (30)— 1,137 
Leases— 493 3,288 1,450 (956)230 4,505 
Residential real estate6,044 2,394 2,645 (1,305)(313)103 9,568 
Home equity lines of credit1,860 41 674 (196)(196)41 2,224 
Consumer, indirect8,030 — — (891)(1,190)211 6,160 
Consumer, direct1,081 112 180 (252)(96)54 1,079 
Deposit account overdrafts63 — — 208 (327)135 79 
Total$50,359 $22,827 $13,868 $(6,255)$(4,221)$804 $77,382 
(a)Amount does not include the provision for the allowance for credit losses on unfunded commitments.