
(Dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
March 31, 2023
Obligations of:
U.S. Treasury and government agencies	$	61,584	$	—	$	(3,146)	$	58,438
U.S. government sponsored agencies	109,927		22		(11,638)		98,311
States and political subdivisions	254,523		32		(29,559)		224,996
Residential mortgage-backed securities	697,452		1,070		(93,252)		605,270
Commercial mortgage-backed securities	62,256		—		(10,103)		52,153
Bank-issued trust preferred securities	10,779		40		(490)		10,329

Total available-for-sale securities	$	1,196,521	$	1,164	$	(148,188)	$	1,049,497
December 31, 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


	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
March 31, 2023
Obligations of:
U.S. Treasury and government agencies	$	—	$	—	—	$	58,438	$	3,146	18	$	58,438	$	3,146
U.S. government sponsored agencies	24,093		222		18	71,220		11,416		14	95,313		11,638
States and political subdivisions	52,634		355		96	161,939		29,204		117	214,573		29,559
Residential mortgage-backed securities	22,648		486		32	572,090		92,766		212	594,738		93,252
Commercial mortgage-backed securities	1,627		8		1	50,526		10,095		23	52,153		10,103
Bank-issued trust preferred securities	478		22		1	7,533		468		4	8,011		490

Total	$	101,480	$	1,093	148	$	921,746	$	147,095	388	$	1,023,226	$	148,188
December 31, 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

Management evaluates available-for-sale investment securities for an allowance for credit losses on a quarterly basis. At March 31, 2023, management concluded that no individual securities at an unrealized loss position required an allowance for credit losses. At March 31, 2023, 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 March 31, 2023 and December 31, 2022 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 $6.7 million at March 31, 2023 and $7.8 million at December 31, 2022.

At March 31, 2023, 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 book values. 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. Obligations of the U.S. treasury and government agencies, obligations of 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 to be 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 March 31, 2023. 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	$	12,495		$	49,089		$	—		$	—		$	61,584
U.S. government sponsored agencies	9,309			47,321			45,042			8,255			109,927
States and political subdivisions	25,699			47,241			67,302			114,281			254,523
Residential mortgage-backed securities	1			1,415			56,175			639,861			697,452
Commercial mortgage-backed securities	1,635			7,463			29,862			23,296			62,256
Bank-issued trust preferred securities	—			6,279			4,500			—			10,779

Total available-for-sale securities	$	49,139		$	158,808		$	202,881		$	785,693		$	1,196,521
Fair value
Obligations of:
U.S. Treasury and government agencies	$	12,195		$	46,243		$	—		$	—		$	58,438
U.S. government sponsored agencies	9,154			44,088			38,785			6,284			98,311
States and political subdivisions	25,637			45,497			57,761			96,101			224,996
Residential mortgage-backed securities	1			1,358			51,295			552,616			605,270
Commercial mortgage-backed securities	1,627			6,771			24,990			18,765			52,153
Bank-issued trust preferred securities	—			6,284			4,045			—			10,329

Total available-for-sale securities	$	48,614		$	150,241		$	176,876		$	673,766		$	1,049,497
Total weighted-average yield	2.58		%	2.27		%	1.69		%	1.89		%	1.93		%


(Dollars in thousands)	Amortized Cost		Allowance for Credit Losses		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
March 31, 2023
Obligations of:
U.S. government sponsored agencies	$	194,184	$	—	$	385	$	(8,123)	$	186,446
States and political subdivisions	145,085		(241)		199		(30,851)		114,192
Residential mortgage-backed securities	245,294		—		1,321		(16,345)		230,377
Commercial mortgage-backed securities	109,750		—		49		(16,378)		93,421
Total held-to-maturity securities	$	694,313	$	(241)	$	1,954	$	(71,697)	$	624,436
December 31, 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

Management evaluates held-to-maturity investment securities for an allowance for credit losses on a quarterly basis. Peoples has determined that the loss given default for U.S. government sponsored enterprise investment securities is zero, due to the fact that it is unlikely the ultimate guarantor (the U.S. government) would not perform on its implicit guarantee in the event of default. The remaining securities are included in the calculation of the allowance for credit losses for held-to-maturity investment securities. Peoples recorded $241,000 of allowance for credit losses for held-to-maturity securities at both March 31, 2023, and December 31, 2022.


	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
March 31, 2023
Obligations of:
U.S. government sponsored agencies	$	81,988	$	413	14	30,303		7,710		9	$	112,291	$	8,123
States and political subdivisions	—		—		—	110,831		30,851		67	110,831		30,851
Residential mortgage-backed securities	67,554		884		20	87,045		15,461		23	154,599		16,345
Commercial mortgage-backed securities	22,008		462		5	65,621		15,916		31	87,629		16,378
Total	$	171,550	$	1,759	39	$	293,800	$	69,938	130	$	465,350	$	71,697
December 31, 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

The table below presents the amortized cost, fair value and total weighted-average yield of held-to-maturity securities by contractual maturity at March 31, 2023. 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 23.3% for the three months ended March 31, 2023 and December 31, 2022, 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	2,126			$	24,178		$	71,008		$	96,872		$	194,184
States and political subdivisions	—			5,214			9,402			130,469			145,085
Residential mortgage-backed securities	—			890			—			244,404			245,294
Commercial mortgage-backed securities	5,004			6,129			34,744			63,873			109,750
Total held-to-maturity securities	$	7,130		$	36,411		$	115,154		$	535,618		$	694,313
Fair value
Obligations of:
U.S. government sponsored agencies	2,102			$	23,398		$	70,844		$	90,102		$	186,446
States and political subdivisions	—			4,944			8,165			101,083			114,192
Residential mortgage-backed securities	—			866			—			229,511			230,377
Commercial mortgage-backed securities	4,899			5,471			30,996			52,055			93,421
Total held-to-maturity securities	$	7,001		$	34,679		$	110,005		$	472,751		$	624,436
Total weighted-average yield	2.01		%	2.01		%	4.29		%	3.45		%	3.50		%


(Dollars in thousands)	March 31, 2023		December 31, 2022
FHLB stock	$	27,381	$	26,605
FRB stock	21,231		21,231
Nonqualified deferred compensation	2,405		2,048
Equity investment securities	367		346
Other investment securities	1,379		1,379
Total other investment securities	$	52,763	$	51,609

During the three months ended March 31, 2023, Peoples redeemed $3.7 million of FHLB stock in order to be in compliance with the requirements of the FHLB. Peoples purchased $4.5 million of additional FHLB stock during the three months ended March 31, 2023, as a result of the FHLB's capital requirements on FHLB advances during the first quarter.

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)	March 31, 2023		December 31, 2022

Securing public and trust department deposits, and repurchase agreements:
Available-for-sale	$	704,074	$	779,244
Held-to-maturity	372,372		312,921



Securing additional borrowing capacity at the FHLB and the FRB:
Available-for-sale	3,949		3,972
Held-to-maturity	145,867		128,870