Acquisitions (Tables)

9 Months Ended

Sep. 30, 2023

Business Combination and Asset Acquisition [Abstract]

Summary of Assets Acquired and Liabilities Assumed

The following table provides the preliminary purchase price calculation as of the date of the Limestone Merger, and the assets acquired and liabilities assumed at their estimated fair values. The estimated fair values below were considered preliminary as of September 30, 2023, and are subject to adjustment for up to one year after April 30, 2023. Valuations subject to change include, but are not limited to, loans, including the designation of PCD loans, deferred tax assets and liabilities, long-term borrowings, and certain other assets and other liabilities.

(Dollars in thousands)	Fair Value
Total purchase price	$	177,931
Assets
Cash and balances due from banks	6,422
Interest-bearing deposits in other banks	87,115
Total cash and cash equivalents	93,537
Available-for-sale investment securities, at fair value	166,944
Other investment securities	5,716
Total investment securities	172,660
Loans	1,079,980
Allowance for credit losses (on PCD loans)	(1,161)
Net loans	1,078,819
Bank premises and equipment, net of accumulated depreciation	17,690

(Dollars in thousands)	Fair Value
Bank owned life insurance	31,343
Other intangible assets	27,722
Other assets	34,925
Total assets	1,456,696
Liabilities
Deposits:
Non-interest-bearing	262,727
Interest-bearing	971,457
Total deposits	1,234,184
Short-term borrowings	60,000
Long-term borrowings	33,744
Accrued expenses and other liabilities	12,967
Total liabilities	1,340,895
Net assets	115,801
Goodwill	$	62,130

The below table reflects the changes in the estimated fair value as they impact goodwill at September 30, 2023:

(Dollars in thousands)	Fair Value
Cash and balances due from banks	1,162
Total cash and cash equivalents	1,162
Loans	727
Allowance for credit losses (on PCD loans)	(153)
Net loans	574
Other assets	(447)
Total assets	1,289
Net assets	1,289
Goodwill	$	(1,289)

The following table provides the final purchase price calculation as of the date of the acquisition of Vantage, and the assets acquired and liabilities assumed at their estimated fair values.

(Dollars in thousands) Fair Value

(Dollars in thousands)	Fair Value
Total purchase price	$	82,893
Net assets at fair value
Assets
Cash and due from banks	$	1,444
Leases	155,726
Allowance for credit losses (on PCD leases)	(801)
Net leases	154,925
Bank premises and equipment	116
Other intangible assets	13,207
Other assets	1,506
Total assets	$	171,198
Liabilities
Borrowings	$	106,919
Accrued expenses and other liabilities	8,550
Total liabilities	$	115,469
Net assets	$	55,729
Goodwill	$	27,164

Summary of Acquired Purchased Credit Deteriorated Loans

The following table details the fair value adjustment for acquired PCD loans as of the acquisition date:

(Dollars in thousands)	Par Value		Allowance for Credit Losses		Non-Credit (Discount) Premium		Fair Value
PCD loans
Commercial real estate, other	16,390		(418)		(877)		15,095
Commercial and industrial	16,466		(379)		(610)		15,477
Residential real estate	6,994		(259)		(979)		5,756
Home equity lines of credit	774		(18)		11		767
Consumer	1,029		(86)		78		1,021
Fair value	$	41,653	$	(1,160)	$	(2,377)	$	38,116

The following table details the fair value adjustment for acquired PCD leases related to the Vantage acquisition as of the acquisition date:

(Dollars in thousands)	Par Value		Allowance for Credit Losses		Non-Credit Premium		Fair Value
PCD leases
Leases	$	3,412	$	(801)	$	1,120	$	3,731
Fair value	$	3,412	$	(801)	$	1,120	$	3,731

Summary of Pro Forma Information

The pro forma information does not necessarily reflect the results of operations that would have occurred had Peoples acquired Limestone on January 1, 2022. Additionally, cost savings and other business synergies related to the acquisition are not reflected in the pro forma amounts.

	Unaudited Pro Forma For
	Three Months Ended				Nine Months Ended
(Dollars in thousands)	September 30, 2023		September 30, 2022		September 30, 2023		September 30, 2022
Net interest income	$	88,541	$	83,235	$	266,367	$	228,719
Non-interest income	23,204		22,594		63,756		66,524
Net income	31,906		33,319		98,810		92,639