Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

Income Tax Disclosure [Abstract]

Schedule of Effective Income Tax Rate Reconciliation

The reported income tax expense and effective tax rate in the Consolidated Statements of Income differ from the amounts computed by applying the statutory federal corporate income tax rate as follows for the years ended December 31:

(Dollars in thousands)	2022				2021				2020
	Amount		Rate		Amount		Rate		Amount		Rate
Income tax computed at statutory federal corporate income tax rate	$	27,015	21.0	%	$	11,954	21.0	%	$	8,956	21.0	%
Differences in rate resulting from:
State taxes, net of federal benefit	2,277		1.8	%	119		0.2	%	62		0.1	%
Investment securities impairment	431		0.3	%	—		—	%	—		—	%
Nondeductible acquisition costs	42		—	%	269		0.5	%	—		—	%
Common share awards	12		—	%	74		0.1	%	(5)		—	%
Bank owned life insurance	(551)		(0.4)	%	(371)		(0.6)	%	(415)		(1.0)	%
Investments in tax credit funds	(629)		(0.5)	%	(381)		(0.7)	%	(415)		(1.0)	%
Captive insurance benefit	(421)		(0.3)	%	(435)		(0.8)	%	(412)		(1.0)	%
Tax-exempt interest income	(921)		(0.7)	%	(835)		(1.5)	%	(668)		(1.6)	%
Fixed asset depreciation	—		—	%	(1,142)		(2.0)	%	—		—	%
Other, net	94		0.1	%	163		0.3	%	776		2.0	%
Income tax expense	$	27,349	21.3	%	$	9,415	16.5	%	$	7,879	18.5	%

Schedule of Components of Income Tax Expense (Benefit)

Peoples' reported income tax expense consisted of the following for the years ended December 31:

(Dollars in thousands)	2022		2021		2020
Current income tax expense	$	8,783	$	6,541	$	15,980
Deferred income tax expense (benefit)	18,566		2,874		(8,101)
Income tax expense	$	27,349	$	9,415	$	7,879

Schedule of Deferred Tax Assets and Liabilities

The significant components of Peoples' deferred tax assets and deferred tax liabilities consisted of the following at December 31:

(Dollars in thousands)	2022		2021
Deferred tax assets:
Available-for-sale securities	$	39,425	$	1,905
Allowance for credit losses	12,827		13,575
Nonaccrual loan interest income	4,366		3,898
Accrued employee benefits	3,391		2,161
Lease obligation	1,757		1,960
Net operating loss carryforward	158		223
Tax credit investments	—		1,096
Derivative instruments	—		1,088
Other	899		561
Gross deferred tax assets	$	62,823	$	26,467
Valuation allowance	$	158	$	158
Total deferred tax assets	$	62,665	$	26,309
Deferred tax liabilities:
Equipment leases	$	16,316	$	—
Deferred loan income	5,512		5,249
Purchase accounting adjustments	4,431		3,166
Bank premises and equipment	3,206		3,838
Lease right-of-use assets	1,588		1,788
Derivative instruments	1,302		—
Other	2,259		662
Total deferred tax liabilities	$	34,614	$	14,703
Net deferred tax asset	$	28,051	$	11,606

Schedule of Income Tax Contingencies

The following table provides a reconciliation of uncertain tax positions at December 31:

(Dollars in thousands)	2022		2021
Uncertain tax positions, beginning of year	$	106	$	149
Gross increase based on tax positions related to current year	39		—
Gross decrease due to the statute of limitations	(56)		(43)
Uncertain tax positions, end of year	$	89	$	106