
(Dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
2022
Obligations of:
U.S. Treasury and government agencies	$	158,473	$	—	$	(6,051)	$	152,422
U.S. government sponsored agencies	101,753		18		(13,656)		88,115
States and political subdivisions	261,612		12		(35,742)		225,882
Residential mortgage-backed securities	707,025		1,017		(103,389)		604,653
Commercial mortgage-backed securities	61,091		—		(11,042)		50,049
Bank-issued trust preferred securities	10,765		57		(544)		10,278
Total available-for-sale securities	$	1,300,719	$	1,104	$	(170,424)	$	1,131,399
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
2022
Obligations of:
U.S. Treasury and government agencies	$	112,730	$	2,772	13	$	39,692	$	3,279	11	$	152,422	$	6,051
U.S. government sponsored agencies	15,166		249		17	66,706		13,407		18	81,872		13,656
States and political subdivisions	60,324		714		114	156,900		35,028		117	217,224		35,742
Residential mortgage-backed securities	104,959		8,087		105	488,452		95,302		139	593,411		103,389
Commercial mortgage-backed securities	1,874		129		2	48,175		10,913		21	50,049		11,042
Bank-issued trust preferred securities	4,400		100		3	3,556		444		2	7,956		544
Total	$	299,453	$	12,051	254	$	803,481	$	158,373	308	$	1,102,934	$	170,424
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 of credit losses on a quarterly basis. At December 31, 2022, management concluded that no individual securities at an unrealized loss position required an allowance for credit losses. At December 31, 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 December 31, 2022 and 2021 were largely attributable to changes in market interest rates and spreads since the securities were purchased. Accrued interest receivable is not included in investment securities balances, and is presented in the "Other assets" line of the Consolidated Balance Sheets, with no recorded allowance for credit losses. Interest receivable on investment securities was $7.8 million at December 31, 2022 and $5.5 million at December 31, 2021.

At December 31, 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 their respective 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 number of loans underlying these securities.

The table below presents the amortized cost, fair value and total weighted-average yield of available-for-sale securities by contractual maturity at December 31, 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%. 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	$	53,010		$	105,463		$	—		$	—		$	158,473
U.S. government sponsored agencies	7,028			41,440			45,016			8,269			101,753
States and political subdivisions	27,434			48,406			69,824			115,948			261,612
Residential mortgage-backed securities	18			1,595			57,748			647,664			707,025
Commercial mortgage-backed securities	1,090			4,089			30,901			25,011			61,091
Bank-issued trust preferred securities	—			4,265			6,500			—			10,765
Total available-for-sale securities	$	88,580		$	205,258		$	209,989		$	796,892		$	1,300,719
Fair value
Obligations of:
U.S. Treasury and government agencies	$	51,957		$	100,465		$	—		$	—		$	152,422
U.S. government sponsored agencies	6,933			37,643			37,513			6,026			88,115
States and political subdivisions	27,312			46,152			58,275			94,143			225,882
Residential mortgage-backed securities	18			1,524			52,232			550,879			604,653
Commercial mortgage-backed securities	1,080			3,751			25,520			19,698			50,049
Bank-issued trust preferred securities	—			4,313			5,965			—			10,278
Total available-for-sale securities	$	87,300		$	193,848		$	179,505		$	670,746		$	1,131,399
Total weighted-average yield	2.32		%	2.07		%	1.71		%	1.82		%	1.88		%


(Dollars in thousands)	Amortized Cost		Allowance for Credit Losses		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
2022
Obligations of:
U.S. government sponsored agencies	$	132,366	$	—	$	130	$	(9,476)	$	123,020
States and political subdivisions	145,263		(241)		162		(36,408)		108,776
Residential mortgage-backed securities	176,215		—		244		(18,461)		157,998
Commercial mortgage-backed securities	106,609		—		—		(17,894)		88,715
Total held-to-maturity securities	$	560,453	$	(241)	$	536	$	(82,239)	$	478,509
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 residential mortgage-backed securities. Peoples analyzed these securities using cumulative default rate averages for investment grade municipal securities.


	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
2022
Obligations of:
U.S. government sponsored agencies	$	59,905	$	651	17	$	29,306	$	8,825	9	$	89,211	$	9,476
States and political subdivisions	3,590		1,072		3	101,863		35,336		64	105,453		36,408
Residential mortgage-backed securities	71,582		2,904		21	72,862		15,557		18	144,444		18,461
Commercial mortgage-backed securities	26,869		650		8	61,846		17,244		29	88,715		17,894
Total	$	161,946	$	5,277	49	$	265,877	$	76,962	120	$	427,823	$	82,239
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 December 31, 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%. 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	$	2,125		$	20,012		$	48,883		$	61,346		$	132,366
States and political subdivisions	—			5,211			9,407			130,645			145,263
Residential mortgage-backed securities	—			1,036			—			175,179			176,215
Commercial mortgage-backed securities	—			12,026			31,438			63,145			106,609
Total held-to-maturity securities	$	2,125		$	38,285		$	89,728		$	430,315		$	560,453
Fair value
Obligations of:
U.S. government sponsored agencies	$	2,093		$	19,194		$	48,320		$	53,413		$	123,020
States and political subdivisions	—			4,857			7,809			96,110			108,776
Residential mortgage-backed securities	—			1,006			—			156,992			157,998
Commercial mortgage-backed securities	—			11,126			27,832			49,757			88,715
Total held-to-maturity securities	$	2,093		$	36,183		$	83,961		$	356,272		$	478,509
Total weighted-average yield	0.98		%	1.97		%	4.17		%	3.02		%	3.12		%

Peoples redeemed $2.6 million and $8.2 million of FHLB stock in 2022 and 2021, respectively, in order to be in compliance with the requirements of the FHLB. Peoples purchased $11.9 million and $3.8 million of additional FHLB stock during 2022 and 2021, respectively, as a result of the FHLB's capital requirements on FHLB advances during the year. During the year ended December 31, 2022, Peoples purchased $7.9 million of FRB stock as requested by the FRB as a result of the Premier Merger on September 17, 2021.

During 2022, Peoples recorded the change in the fair value of equity investment securities held at December 31, 2022 in "Other non-interest income", resulting in an unrealized gain of $2,000. During 2021, Peoples recorded the change in the fair value of equity investment securities held at December 31, 2021 in "Other non-interest income", resulting in unrealized gain of $111,000.

At December 31, 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.

At December 31, 2022 and 2021, Peoples had 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 also pledged available-for-sale investment securities and held-to-maturity 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.