
(Dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
June 30, 2023
Obligations of:
U.S. Treasury and government agencies	$	78,769	$	232	$	(3,746)	$	75,255
U.S. government sponsored agencies	111,070		—		(12,746)		98,324
States and political subdivisions	280,498		77		(32,304)		248,271
Residential mortgage-backed securities	737,345		852		(102,710)		635,487
Commercial mortgage-backed securities	62,961		1		(10,132)		52,830
Bank-issued trust preferred securities	21,688		2,182		(598)		23,272

Total available-for-sale securities	$	1,292,331	$	3,344	$	(162,236)	$	1,133,439
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
June 30, 2023
Obligations of:
U.S. Treasury and government agencies	$	7,020	$	164	16	$	57,976	$	3,582	18	$	64,996	$	3,746
U.S. government sponsored agencies	27,135		275		15	71,195		12,471		16	98,330		12,746
States and political subdivisions	69,362		1,031		141	162,552		31,273		123	231,914		32,304
Residential mortgage-backed securities	77,730		1,787		102	544,749		100,923		214	622,479		102,710
Commercial mortgage-backed securities	8,090		155		9	44,518		9,977		21	52,608		10,132
Bank-issued trust preferred securities	—		—		—	3,902		598		3	3,902		598

Total	$	189,337	$	3,412	283	$	884,892	$	158,824	395	$	1,074,229	$	162,236
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 June 30, 2023, management concluded that no individual securities at an unrealized loss position required an allowance for credit losses. At June 30, 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 June 30, 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 $9.8 million at June 30, 2023 and $7.8 million at December 31, 2022.

At June 30, 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 five positions, consisted of privately issued mortgage-backed securities with all of the underlying mortgages originated prior to 2004. Of the five 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, Federal, state or local 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 June 30, 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	$	12,496		$	51,227		$	8,855		$	6,191		$	78,769
U.S. government sponsored agencies	10,082			60,436			32,311			8,241			111,070
States and political subdivisions	24,456			58,633			69,644			127,765			280,498
Residential mortgage-backed securities	1			3,157			58,005			676,182			737,345
Commercial mortgage-backed securities	1,634			8,428			31,690			21,209			62,961
Bank-issued trust preferred securities	—			7,175			12,671			1,842			21,688

Total available-for-sale securities	$	48,669		$	189,056		$	213,176		$	841,430		$	1,292,331
Fair value
Obligations of:
U.S. Treasury and government agencies	$	12,200		$	47,897		$	8,855		$	6,303		$	75,255
U.S. government sponsored agencies	9,950			54,971			27,167			6,236			98,324
States and political subdivisions	24,362			55,420			59,159			109,330			248,271
Residential mortgage-backed securities	1			2,971			52,558			579,957			635,487
Commercial mortgage-backed securities	1,622			7,695			26,547			16,966			52,830
Bank-issued trust preferred securities	—			7,517			13,913			1,842			23,272

Total available-for-sale securities	$	48,135		$	176,471		$	188,199		$	720,634		$	1,133,439
Total weighted-average yield	2.71		%	2.42		%	2.16		%	2.16		%	2.22		%


(Dollars in thousands)	Amortized Cost		Allowance for Credit Losses		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
June 30, 2023
Obligations of:
U.S. government sponsored agencies	$	176,027	$	—	$	74	$	(9,867)	$	166,234
States and political subdivisions	144,909		(241)		124		(31,991)		112,801
Residential mortgage-backed securities	243,807		—		474		(20,326)		223,955
Commercial mortgage-backed securities	109,423		—		—		(18,145)		91,278
Total held-to-maturity securities	$	674,166	$	(241)	$	672	$	(80,329)	$	594,268
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 agencies 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 reported $0.2 million of allowance for credit losses for held-to-maturity securities at both June 30, 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
June 30, 2023
Obligations of:
U.S. government sponsored agencies	$	124,952	$	1,612	26	31,766		8,255		10	$	156,718	$	9,867
States and political subdivisions	—		—		—	109,514		31,991		67	109,514		31,991
Residential mortgage-backed securities	117,092		3,598		29	83,902		16,728		26	200,994		20,326
Commercial mortgage-backed securities	19,355		860		5	71,922		17,285		33	91,277		18,145
Total	$	261,399	$	6,070	60	$	297,104	$	74,259	136	$	558,503	$	80,329
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 June 30, 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 23.6% and 23.3% at June 30, 2023 and at 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	4,627			$	21,669		$	67,019		$	82,712		$	176,027
States and political subdivisions	—			5,216			9,397			130,296			144,909
Residential mortgage-backed securities	—			772			4,558			238,477			243,807
Commercial mortgage-backed securities	5,002			9,494			31,176			63,751			109,423
Total held-to-maturity securities	$	9,629		$	37,151		$	112,150		$	515,236		$	674,166
Fair value
Obligations of:
U.S. government sponsored agencies	4,559			$	20,797		$	66,047		$	74,831		$	166,234
States and political subdivisions	—			5,217			8,033			99,551			112,801
Residential mortgage-backed securities	—			747			3,896			219,312			223,955
Commercial mortgage-backed securities	4,908			8,492			27,202			50,676			91,278
Total held-to-maturity securities	$	9,467		$	35,253		$	105,178		$	444,370		$	594,268
Total weighted-average yield	2.06		%	1.83		%	4.16		%	3.36		%	3.39		%


(Dollars in thousands)	June 30, 2023		December 31, 2022
FHLB stock	$	31,564	$	26,605
FRB stock	26,511		21,231
Nonqualified deferred compensation	2,660		2,048
Equity investment securities	375		346
Other investment securities	2,469		1,379
Total other investment securities	$	63,579	$	51,609

During the six months ended June 30, 2023, Peoples redeemed $9.6 million of FHLB stock in order to be in compliance with the requirements of the FHLB. Peoples purchased $7.6 million of additional FHLB stock during the six months ended June 30, 2023, as a result of the FHLB's capital requirements on FHLB advances during the first six months.

During the three months ended June 30, 2023 and 2022, Peoples recorded the change in the fair value of equity investment securities held during the period, in "Other non-interest income", resulting in an unrealized loss of $138,000 and an unrealized loss of $11,000, respectively. For the six months ended June 30, 2023 and 2022, Peoples recognized a unrealized loss of $117,000 and an unrealized loss of $18,000, respectively, for the change in fair value of equity investment securities in "Other non-interest income".

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.


	Carrying Amount
(Dollars in thousands)	June 30, 2023		December 31, 2022

Securing public and trust department deposits, and repurchase agreements:
Available-for-sale	$	795,106	$	779,244
Held-to-maturity	386,494		312,921



Securing additional borrowing capacity at the FHLB and the FRB:
Available-for-sale	3,735		3,972
Held-to-maturity	143,137		128,870