
(Dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
2023
Obligations of:
U.S. Treasury and government agencies	$	30,999	$	292	$	(995)	$	30,296
U.S. government sponsored agencies	128,500		639		(10,532)		118,607
States and political subdivisions	239,906		485		(27,095)		213,296
Residential mortgage-backed securities	717,772		1,819		(90,667)		628,924
Commercial mortgage-backed securities	60,611		5		(9,382)		51,234
Bank-issued trust preferred securities	6,500		—		(535)		5,965
Total available-for-sale securities	$	1,184,288	$	3,240	$	(139,206)	$	1,048,322
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
2023
Obligations of:
U.S. Treasury and government agencies	$	8,568	$	83	22	$	11,631	$	912	5	$	20,199	$	995
U.S. government sponsored agencies	14,439		35		4	74,211		10,497		15	88,650		10,532
States and political subdivisions	18,268		136		32	167,346		26,959		138	185,614		27,095
Residential mortgage-backed securities	58,671		1,150		66	529,895		89,517		238	588,566		90,667
Commercial mortgage-backed securities	6,000		112		7	44,656		9,270		21	50,656		9,382
Bank-issued trust preferred securities	1,984		16		1	3,981		519		3	5,965		535
Total	$	107,930	$	1,532	132	$	831,720	$	137,674	420	$	939,650	$	139,206
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 of credit losses on a quarterly basis. At December 31, 2023, management concluded that no individual securities at an unrealized loss position required an allowance for credit losses. At December 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 December 31, 2023 and 2022 were largely attributable to changes in market interest rates and spreads since the securities were purchased. Accrued interest receivable is not included in the investment securities balances, and is presented in the “Other assets” line of the Consolidated Balance Sheets, with no recorded allowance for credit losses. Interest receivable on investment securities was $8.8 million at December 31, 2023 and $7.8 million at December 31, 2022.

The table below presents the amortized cost, fair value and total weighted-average yield of available-for-sale securities by contractual maturity at December 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%. 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	$	1,283		$	15,302		$	8,403		$	6,011		$	30,999
U.S. government sponsored agencies	2,499			59,086			34,849			32,066			128,500
States and political subdivisions	11,042			46,054			59,932			122,878			239,906
Residential mortgage-backed securities	3			3,690			61,069			653,010			717,772
Commercial mortgage-backed securities	—			12,502			27,191			20,918			60,611
Bank-issued trust preferred securities	—			3,000			3,500			—			6,500
Total available-for-sale securities	$	14,827		$	139,634		$	194,944		$	834,883		$	1,184,288
Fair value
Obligations of:
U.S. Treasury and government agencies	$	1,275		$	14,354		$	8,493		$	6,174		$	30,296
U.S. government sponsored agencies	2,486			54,898			30,426			30,797			118,607
States and political subdivisions	10,990			43,535			51,294			107,477			213,296
Residential mortgage-backed securities	3			3,570			56,084			569,267			628,924
Commercial mortgage-backed securities	—			11,370			23,061			16,803			51,234
Bank-issued trust preferred securities	—			2,920			3,045			—			5,965
Total available-for-sale securities	$	14,754		$	130,647		$	172,403		$	730,518		$	1,048,322
Total weighted-average yield	2.30		%	2.58		%	2.42		%	2.59		%	2.56		%


(Dollars in thousands)	Amortized Cost		Allowance for Credit Losses		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
2023
Obligations of:
U.S. government sponsored agencies	$	188,475	$	—	$	489	$	(8,139)	$	180,825
States and political subdivisions	144,496		(238)		134		(30,104)		114,288
Residential mortgage-backed securities	248,559		—		1,643		(18,582)		231,620
Commercial mortgage-backed securities	102,365		—		—		(17,076)		85,289
Total held-to-maturity securities	$	683,895	$	(238)	$	2,266	$	(73,901)	$	612,022
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. The majority of Peoples’ held-to-maturity investment securities are residential mortgage-backed securities. Peoples analyzed these securities using cumulative default rate averages for investment grade municipal securities.


	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
2023
Obligations of:
U.S. government sponsored agencies	$	64,487	$	356	14	$	86,071	$	7,783	18	$	150,558	$	8,139
States and political subdivisions	—		—		—	111,040		30,104		67	111,040		30,104
Residential mortgage-backed securities	44,379		1,105		14	117,654		17,477		34	162,033		18,582
Commercial mortgage-backed securities	13,919		1,845		6	71,370		15,231		31	85,289		17,076
Total	$	122,785	$	3,306	34	$	386,135	$	70,595	150	$	508,920	$	73,901
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 December 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%. 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	$	8,000		$	13,152		$	67,043		$	100,280		$	188,475
States and political subdivisions	—			6,421			11,434			126,641			144,496
Residential mortgage-backed securities	—			540			4,347			243,672			248,559
Commercial mortgage-backed securities	1,546			9,419			40,495			50,905			102,365
Total held-to-maturity securities	$	9,546		$	29,532		$	123,319		$	521,498		$	683,895
Fair value
Obligations of:
U.S. government sponsored agencies	$	7,931		$	12,640		$	66,717		$	93,537		$	180,825
States and political subdivisions	—			6,343			9,875			98,070			114,288
Residential mortgage-backed securities	—			528			3,818			227,274			231,620
Commercial mortgage-backed securities	1,528			8,058			34,752			40,951			85,289
Total held-to-maturity securities	$	9,459		$	27,569		$	115,162		$	459,832		$	612,022
Total weighted-average yield	3.81		%	2.87		%	3.98		%	3.55		%	3.60		%

Peoples redeemed $21.2 million and $2.6 million of FHLB stock in 2023 and 2022, respectively, in order to be in compliance with the requirements of the FHLB. Peoples purchased $18.9 million and $11.9 million of additional FHLB stock during 2023 and 2022, respectively, as a result of the FHLB’s capital requirements on FHLB advances during the year. During the year ended December 31, 2023, Peoples purchased $5.7 million of FRB stock as a result of capital requirements. During the year ended December 31, 2022, Peoples purchased $7.9 million of FRB stock as requested by the FRB as a result of the Premier Merger on September 17, 2021.

During 2023, Peoples recorded the change in the fair value of equity investment securities held at December 31, 2023 in “Other non-interest income,” resulting in an unrealized loss of $141,000. During 2022, Peoples recorded the change in the fair value of equity investment securities held at December 31, 2022 in “Other non-interest income,” resulting in unrealized gain of $2,000.

At December 31, 2023, Peoples’ investment in equity investment securities was comprised largely of common stocks issued by various unrelated bank holding companies. There were no equity investment securities of a single issuer that exceeded 10% of Peoples’ stockholders’ equity.

At December 31, 2023 and 2022, Peoples had 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 also pledged available-for-sale investment securities and held-to-maturity investment securities to secure additional borrowing capacity at the FHLB and the FRB.