Fair Value of Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2022

Schedule of Assets Measure at Fair Value Recurring

The following table provides the fair value for assets and liabilities required to be measured and reported at fair value on a recurring basis on the Consolidated Balance Sheets by level in the fair value hierarchy. At December 31, 2022 and December 31, 2021, there were no assets and liabilities measured on a recurring basis that were considered Level 3 measurements.


	Recurring Fair Value Measurements at Reporting Date
	December 31, 2022				December 31, 2021
(Dollars in thousands)	Level 1		Level 2			Level 1		Level 2
Assets:
Available-for-sale investment securities:
Obligations of:
U.S. Treasury and government agencies	$	152,422	$	—		$	35,604	$	—
U.S. government sponsored agencies	—		88,115			—		81,739
States and political subdivisions	—		225,882			—		259,319
Residential mortgage-backed securities	—		604,653			—		828,517
Commercial mortgage-backed securities	—		50,049			—		63,519
Bank-issued trust preferred securities	—		10,278			—		6,795

Total available-for-sale securities	152,422		978,977			35,604		1,239,889






Equity investment securities (a)	147		199			160		184

Derivative assets (b)	—		34,123			—		12,163
Liabilities:
Derivative liabilities (c)	$	—	$	28,529		$	—	$	17,183

(a) Included in "Other investment securities" on the Consolidated Balance Sheets. For additional information, see "Note 3 Investment Securities."

(b) Included in "Other assets" on the Consolidated Balance Sheets. For additional information, see "Note 15 Derivative Financial Instruments."

(c) Included in "Accrued expenses and other liabilities" on the Consolidated Balance Sheets. For additional information, see "Note 15 Derivative Financial Instruments."

Schedule of Fair Value Measurements, Nonrecurring

The following table provides the fair value for each class of assets and liabilities required to be measured and reported at fair value on a non-recurring basis on the Consolidated Balance Sheets by level in the fair value hierarchy. At December 31, 2022 and December 31, 2021, there were no assets and liabilities measured on a non-recurring basis that were considered Level 1 measurements.


	Non-Recurring Fair Value Measurements at Reporting Date
	December 31, 2022				December 31, 2021
(Dollars in thousands)	Level 2		Level 3		Level 2		Level 3
Collateral dependent loans	$	—	$	10,354	$	—	$	430
Loans held for sale (a)	1,254		—		418		—
Other real estate owned ("OREO")	—		55		—		87
Servicing rights (b)(c)	$	—	$	—	—		$	22

(a) Loans held for sale are presented gross of a valuation allowance of $105 and $0 at December 31, 2022 and December 31, 2021, respectively.

(b) Included in "Other intangible assets" on the Consolidated Balance Sheets. Servicing rights are carried at the lower of cost or estimated market value.

(c) Peoples established a valuation allowance on servicing rights of $1 at December 31, 2022 and $12 at December 31, 2021. The fair value of the servicing rights on 10-year fixed rate loans was less than the carrying value.

Schedule of Fair Values of Financial Assets and Liabilities on Balance Sheets

The following table provides the carrying amount for each class of assets and liabilities, and the fair value for certain financial instruments that are not required to be measured or reported at fair value on the Consolidated Balance Sheets.


	Fair Value Measurements of Other Financial Instruments
(Dollars in thousands)	Fair Value Hierarchy Level	December 31, 2022				December 31, 2021
		Carrying Amount		Fair Value		Carrying Amount		Fair Value

Assets:
Cash and cash equivalents	1	$	154,022	$	154,022	$	415,727	$	415,727
Held-to-maturity investment securities:
Obligations of:
U.S. government sponsored agencies	2	132,366		123,020		36,431		35,513
States and political subdivisions (a)	2	145,263		108,776		151,688		150,138
Residential mortgage-backed securities	2	176,215		157,998		110,708		110,159
Commercial mortgage-backed securities	2	101,861		85,354		75,588		74,145
Commercial mortgage-backed securities	3	4,748		3,361		—		—
Total held-to-maturity securities		560,453		478,509		374,415		369,955
Other investment securities:
Other investment securities at cost:
Federal Home Loan Bank ("FHLB") stock	N/A	26,605		26,605		17,308		17,308
Federal Reserve Bank ("FRB") stock	N/A	21,231		21,231		13,311		13,311
Total other investment securities at cost		47,836		47,836		30,619		30,619
Other investment securities at fair value:
Nonqualified deferred compensation (b)	1	2,048		2,048		2,240		2,240
Other investment securities (c)	2	1,379		1,379		784		784
Total other investment securities at fair value		51,263		51,263		33,643		33,643
Loans and leases, net of deferred fees and cost (d)	3	4,707,150		4,516,695		4,481,600		4,510,605
Bank owned life insurance	2	105,292		105,292		73,358		73,358

Financial liabilities:
Deposits	2	$	5,716,941	$	4,682,491	$	5,862,552	$	5,546,552
Short-term borrowings	2	500,138		504,584		166,482		164,990
Long-term borrowings	2	101,093		101,992		99,475		101,664

(a) Held-to-maturity investment securities are presented gross of an allowance for credit losses of $241 and $286, at December 31, 2022 and December 31, 2021, respectively.

(b) Nonqualified deferred compensation includes underlying investments in mutual funds.

(c) "Other investment securities", as reported on the Consolidated Balance Sheets, also included equity investment securities at December 31, 2022

and at December 31, 2021, which are reported in the Assets and Liabilities Required to be Measured and Reported at Fair Value on a Recurring Basis

table above and not included in this table.

(d) Loans and leases, net of deferred fees and cost are presented gross of an allowance for credit losses of $53.2 million and $64.0 million, as of December 31, 2022 and December 31, 2021, respectively.