Leases (Tables)

3 Months Ended

Mar. 31, 2024

Leases [Abstract]

Summary of Sales Type Lease Income

The table below details Peoples' lease income:

	Three Months Ended
(Dollars in thousands)	March 31, 2024		March 31, 2023
Interest and fees on leases (a)	$	12,067	$	9,643
Lease income	1,236		1,077
Other non-interest income	785		—
Total lease income	$	14,088	$	10,720

(a)Included in "Interest and fees on loans and leases" in the Unaudited Consolidated Statements of Operations. For additional information, see "Note 4 Loans and Leases" of the Notes to the Unaudited Condensed Consolidated Financial Statements.

Summary of Sales Type Leases

The following table summarizes the net investment in leases, which is included in "Loans and leases, net of deferred fees and costs" on the Unaudited Consolidated Balance Sheets:

(Dollars in thousands)	March 31, 2024		December 31, 2023
Lease payments receivable, at amortized cost	$	473,987	$	463,742
Estimated residual values	34,157		33,448
Initial direct costs	7,334		7,114
Deferred revenue	(92,784)		(90,244)
Net investment in leases	422,694		414,060
Allowance for credit losses - leases	(12,889)		(10,850)
Net investment in leases, after allowance for credit losses	$	409,805	$	403,210

Summary of Sales Type Lease Maturity

The following table summarizes the contractual maturities of leases:

(Dollars in thousands)	Balance
Remaining nine months ending December 31, 2024	$	103,408
Year ending December 31, 2025	109,429
Year ending December 31, 2026	100,493
Year ending December 31, 2027	82,587
Year ending December 31, 2028	55,038
Thereafter	23,032
Lease payments receivable, at amortized cost	$	473,987

Summary of Lease Cost

The table below details Peoples' lease expense, which is included in "Net occupancy and equipment expense" in the Unaudited Consolidated Statements of Operations:

	Three Months Ended
(Dollars in thousands)	March 31, 2024		March 31, 2023
Operating lease expense	735		695
Short-term lease expense	305		95
Total lease expense	$	1,040	$	790

The following table details the ROU assets, the lease liabilities and other information related to Peoples' operating leases at the dates shown:

(Dollars in thousands)	March 31, 2024			December 31, 2023
ROU assets:
Other assets	$	11,682		$	11,689
Lease liabilities:
Accrued expenses and other liabilities	$	12,062		$	12,080
Other information:
Weighted-average remaining lease term	9.2 years			9.5 years
Weighted-average discount rate	3.92		%	3.34		%
Additions for ROU assets obtained during the year	$	509		$	4,428

Summary of Operating Lease Maturities

The following table summarizes the maturity of remaining lease liabilities:

(Dollars in thousands)	Balance
Remaining nine months ending December 31, 2024	$	2,280
Year ending December 31, 2025	2,210
Year ending December 31, 2026	1,950
Year ending December 31, 2027	1,762
Year ending December 31, 2028	1,338
Thereafter	5,412
Total undiscounted lease payments	$	14,952
Imputed interest	$	(2,890)
Total lease liabilities	$	12,062