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Loans and Leases (Tables)
6 Months Ended
Jun. 30, 2024
Receivables [Abstract]  
Summary of Loans by Classification
The major classifications of loan balances (in each case, net of deferred fees and costs) excluding loans held for sale, were as follows:
(Dollars in thousands)June 30,
2024
December 31, 2023
Construction$340,601 $364,019 
Commercial real estate, other2,195,979 2,196,957 
Commercial and industrial1,258,063 1,184,986 
Premium finance293,349 203,177 
Leases430,651 414,060 
Residential real estate789,344 791,095 
Home equity lines of credit227,608 208,675 
Consumer, indirect675,054 666,472 
Consumer, direct113,655 128,769 
Deposit account overdrafts1,067 986 
Total loans, at amortized cost$6,325,371 $6,159,196 
Summary of Nonaccrual and Past Due Loans
The amortized cost of loans on nonaccrual status and of loans delinquent for 90 days or more and accruing was as follows:
June 30, 2024December 31, 2023
(Dollars in thousands)
Nonaccrual (a)
Accruing Loans 90+ Days Past Due
Nonaccrual (a)
Accruing Loans 90+ Days Past Due
Construction$— $— $— $— 
Commercial real estate, other4,833 106 2,816 78 
Commercial and industrial6,030 208 2,758 316 
Premium finance— 2,546 — 1,355 
Leases11,849 3,193 8,436 3,826 
Residential real estate7,078 1,209 7,921 877 
Home equity lines of credit1,454 230 1,022 171 
Consumer, indirect2,261 67 2,412 68 
Consumer, direct164 33 112 25 
Total loans, at amortized cost$33,669 $7,592 $25,477 $6,716 
(a) There were $1.4 million of nonaccrual loans for which there was no allowance for credit losses at June 30, 2024 and $1.2 million of nonaccrual loans for which there was no allowance for credit losses at December 31, 2023.
Summary of Aging of The Recorded Investment In Past Due Loans and Leases
The following table presents the aging of the amortized cost of past due loans:
Loans Past Due
Current
Loans
Total
Loans
(Dollars in thousands)30 - 59 days60 - 89 days90 + DaysTotal
June 30, 2024
Construction$— $70 $— $70 $340,531 $340,601 
Commercial real estate, other2,509 2,551 2,799 7,859 2,188,120 2,195,979 
Commercial and industrial821 2,191 4,166 7,178 1,250,885 1,258,063 
Premium finance4,051 4,332 2,546 10,929 282,420 293,349 
Leases2,690 9,395 14,831 26,916 403,735 430,651 
Residential real estate3,543 3,065 4,259 10,867 778,477 789,344 
Home equity lines of credit1,071 474 979 2,524 225,084 227,608 
Consumer, indirect5,928 1,119 1,168 8,215 666,839 675,054 
Consumer, direct553 51 86 690 112,965 113,655 
Deposit account overdrafts— — — — 1,067 1,067 
Total loans, at amortized cost$21,166 $23,248 $30,834 $75,248 $6,250,123 $6,325,371 
December 31, 2023
Construction$13 $52 $— $65 $363,954 $364,019 
Commercial real estate, other2,728 4,556 1,572 8,856 2,188,101 2,196,957 
Commercial and industrial1,717 1,491 3,052 6,260 1,178,726 1,184,986 
Premium finance1,288 867 1,355 3,510 199,667 203,177 
Leases12,743 4,932 12,014 29,689 384,371 414,060 
Residential real estate14,021 2,733 4,481 21,235 769,860 791,095 
Home equity lines of credit1,561 691 683 2,935 205,740 208,675 
Consumer, indirect7,488 1,550 1,230 10,268 656,204 666,472 
Consumer, direct536 282 43 861 127,908 128,769 
Deposit account overdrafts— — — — 986 986 
Total loans, at amortized cost$42,095 $17,154 $24,430 $83,679 $6,075,517 $6,159,196 
Summary of Pledged Securities
The following table summarizes the carrying amount of Peoples' pledged securities:
 Carrying Amount
(Dollars in thousands)June 30, 2024December 31, 2023
Securing public and trust department deposits, and repurchase agreements:
     Available-for-sale$670,969 $713,033 
     Held-to-maturity517,799 559,142 
Securing additional borrowing capacity at the FHLB and the FRB:
     Available-for-sale96,078 85,899 
     Held-to-maturity52,659 39,607 
Loans pledged are summarized as follows:
(Dollars in thousands)June 30, 2024December 31, 2023
Loans pledged to FHLB$1,206,145 $1,206,134 
Loans pledged to FRB470,048 419,245 
Summary of Loans by Risk Category
The following table summarizes the risk category of loans within Peoples' loan portfolio, including acquired loans, based upon the most recent analysis performed at June 30, 2024:
Term Loans at Amortized Cost by Origination YearRevolving Loans Converted to Term
(Dollars in thousands)20242023202220212020PriorRevolving Loans
Total
Loans
Construction

  Pass$16,666 $110,671 $132,711 $57,833 $3,265 $15,568 $— $— $336,714 
  Special mention— — 998 — — 119 — — 1,117 
  Substandard— 1,185 1,560 — — 25 — — 2,770 
     Total16,666 111,856 135,269 57,833 3,265 15,712 — — 340,601 
Current period gross charge-offs— — — — — — — 
Commercial real estate, other

  Pass51,930 225,385 356,931 371,474 209,331 826,545 40,467 267 2,082,063 
  Special mention106 750 16,444 8,513 4,871 19,118 594 35 50,396 
  Substandard— 2,056 2,310 12,737 8,553 37,474 380 — 63,510 
  Doubtful— — — — — 10 — — 10 
     Total52,036 228,191 375,685 392,724 222,755 883,147 41,441 302 2,195,979 
Current period gross charge-offs— — 212 — — — 212 
Commercial and industrial
  Pass123,848 221,740 148,939 158,314 75,049 190,182 247,238 4,993 1,165,310 
  Special mention69 3,965 11,960 11,314 11,070 4,420 22,259 5,500 65,057 
  Substandard— 276 2,134 14,522 4,911 2,403 1,233 — 25,479 
  Doubtful— — 2,048 — — 169 — — 2,217 
     Total123,917 225,981 165,081 184,150 91,030 197,174 270,730 10,493 1,258,063 
Term Loans at Amortized Cost by Origination YearRevolving Loans Converted to Term
(Dollars in thousands)20242023202220212020PriorRevolving Loans
Total
Loans
Current period gross charge-offs— — — 15 70 206 291 
Premium Finance
Pass250,326 42,781 242 — — — — — 293,349 
Total250,326 42,781 242 — — — — — 293,349 
Current period gross charge-offs76 32 — — — 109 
Leases
Pass114,756 164,561 88,396 36,381 8,486 3,247 — — 415,827 
Special mention294 1,842 679 128 23 — — 2,975 
Substandard403 2,921 5,394 2,305 439 387 — — 11,849 
Total115,453 169,324 94,469 38,814 8,948 3,643 — — 430,651 
Current period gross charge-offs— 1,499 1,498 565 47 38 3,647 
Residential real estate
Pass45,622 71,719 88,373 134,905 55,916 382,908 — — 779,443 
Substandard— 375 45 738 175 8,484 — — 9,817 
Loss— — — — 78 — — 84 
     Total45,622 72,100 88,418 135,643 56,091 391,470 — — 789,344 
Current period gross charge-offs— — 46 — 93 144 
Home equity lines of credit
  Pass31,066 40,667 40,425 30,901 18,285 64,766 25 1,119 226,135 
  Substandard— 19 43 86 34 1,281 — — 1,463 
Loss— — — — — 10 — — 10 
     Total31,066 40,686 40,468 30,987 18,319 66,057 25 1,119 227,608 
Current period gross charge-offs— — — — — 
Consumer, indirect
  Pass132,042 213,380 184,569 75,211 43,458 23,473 — — 672,133 
  Substandard25 689 660 778 392 347 — — 2,891 
   Loss— 12 14 — — — — 30 
     Total132,067 214,081 185,243 75,993 43,850 23,820 — — 675,054 
Current period gross charge-offs47 1,268 1,042 454 100 117 3,028 
Consumer, direct
  Pass28,303 32,440 28,430 12,999 5,992 5,188 — — 113,352 
  Substandard— 60 70 49 81 — — 267 
Term Loans at Amortized Cost by Origination YearRevolving Loans Converted to Term
(Dollars in thousands)20242023202220212020PriorRevolving Loans
Total
Loans
   Loss— — — — 30 — — 36 
     Total28,303 32,506 28,500 13,048 5,999 5,299 — — 113,655 
Current period gross charge-offs— 79 169 30 10 79 367 
Deposit account overdrafts1,067 — — — — — — — 1,067 
Current period gross charge-offs674 — — — — — 674 
Total loans, at amortized cost796,523 1,137,506 1,113,375 929,192 450,257 1,586,322 312,196 11,914 6,325,371 
Total current period gross charge-offs$722 $2,922 $2,999 $1,069 $227 $542 $8,481 
The following table summarizes the risk category of loans within Peoples' loan portfolio, including acquired loans, based upon the then most recent analysis performed at December 31, 2023:
Term Loans at Amortized Cost by Origination Year
(Dollars in thousands)20232022202120202019PriorRevolving LoansRevolving Loans Converted to Term
Total
Loans
Construction

  Pass$80,273 $141,245 $85,913 $27,169 $9,995 $12,723 $— $— $357,318 
  Special mention— 3,757 — — — 123 — — 3,880 
  Substandard1,200 1,590 — — — 31 — — 2,821 
     Total81,473 146,592 85,913 27,169 9,995 12,877 — — 364,019 
Current period gross charge-offs— — — — — 
Commercial real estate, other

  Pass199,565 327,762 366,752 227,604 262,099 650,265 37,177 189 2,071,224 
  Special mention999 12,975 4,850 10,324 7,074 22,186 408 41 58,816 
  Substandard287 2,421 5,878 8,679 1,972 47,213 457 — 66,907 
  Doubtful— — — — — 10 — — 10 
     Total200,851 343,158 377,480 246,607 271,145 719,674 38,042 230 2,196,957 
Current period gross charge-offs— — — 39 — 575 614 
Commercial and industrial
  Pass225,894 180,068 212,938 86,934 55,434 132,675 213,714 38 1,107,657 
  Special mention540 12,051 533 9,723 4,722 6,336 16,236 8,614 50,141 
  Substandard78 6,441 5,104 5,617 1,602 6,278 1,889 779 27,009 
  Doubtful— — — — — 179 — — 179 
     Total226,512 198,560 218,575 102,274 61,758 145,468 231,839 9,431 1,184,986 
Current period gross charge-offs— 36 202 25 173 415 851 
Premium finance
  Pass201,659 1,517 — — — — — 203,177 
Total201,659 1,517 — — — — — 203,177 
Current period gross charge-offs25 97 — — — — 122 
Leases
Term Loans at Amortized Cost by Origination Year
(Dollars in thousands)20232022202120202019PriorRevolving LoansRevolving Loans Converted to Term
Total
Loans
Pass216,559 114,327 51,307 14,061 4,883 1,501 — — 402,638 
Special mention363 1,529 476 81 — — 2,455 
Substandard1,937 3,006 2,944 448 321 311 — — 8,967 
Total218,859 118,862 54,727 14,590 5,205 1,817 — — 414,060 
Current period gross charge-offs963 1,328 1,173 233 165 135 3,997 
Residential real estate
  Pass75,957 91,506 140,157 58,144 45,507 369,552 — — 780,823 
  Substandard43 243 585 182 529 8,604 — — 10,186 
   Loss— — — — — 86 — — 86 
     Total76,000 91,749 140,742 58,326 46,036 378,242 — — 791,095 
Current period gross charge-offs— — — — — 170 170 
Home equity lines of credit
  Pass39,706 42,565 33,406 19,838 14,297 57,482 27 1,346 207,321 
  Substandard19 — 61 34 123 1,109 — — 1,346 
   Loss— — — — — — — 
     Total39,725 42,565 33,467 19,872 14,420 58,599 27 1,346 208,675 
Current period gross charge-offs— — — — — 110 110 
Consumer, indirect
  Pass247,829 225,225 96,698 59,044 18,644 15,977 — — 663,417 
  Substandard333 934 789 558 190 206 — — 3,010 
   Loss34 — — — — 45 
     Total248,169 226,193 97,489 59,602 18,836 16,183 — — 666,472 
Current period gross charge-offs609 2,091 865 255 63 147 4,030 
Consumer, direct
  Pass58,445 37,050 17,434 8,282 3,185 4,081 — — 128,477 
  Substandard55 79 47 28 30 27 — — 266 
   Loss— — — — — 26 — — 26 
     Total58,500 37,129 17,481 8,310 3,215 4,134 — — 128,769 
Current period gross charge-offs36 154 77 100 14 35 416 
Deposit account overdrafts986 — — — — — — — 986 
Current period gross charge-offs1,161 1,161 
Total loans, at amortized cost$1,352,734 $1,206,325 $1,025,875 $536,750 $430,610 $1,336,994 $269,908 $11,007 $6,159,196 
Current period gross charge-offs$2,794 $3,706 $2,326 $652 $415 $1,587 $11,480 
Summary of Amortized Cost of Collateral Dependent Loans
The following table details Peoples' amortized cost of collateral dependent loans:
(Dollars in thousands)June 30, 2024December 31, 2023
Amortized CostAmortized Cost
Commercial real estate, other$689 $— 
Leases2,479 — 
Residential real estate— 501 
Total collateral dependent loans$3,168 $501 
Summary of Financing Receivables Modified
The following tables display the amortized cost of loans that were restructured during the three and six months ended June 30, 2024 and June 30, 2023, presented by loan classification.
Payment Delay (Only)
(Dollars in thousands)Payment DeferralTerm ExtensionTotal
Percentage of Total by Loan Category(a)(b)(c)
During the Three Months Ended June 30, 2024
Commercial and industrial— 687 687 0.05 %
Leasing174 — 174 0.04 %
Home equity lines of credit— 64 64 0.03 %
Consumer, indirect— — %
Total$174 $759 $933 0.01 %
During the Three Months Ended June 30, 2023
Commercial real estate— 48 48 — %
Commercial and industrial— 3,319 3,319 0.29 %
Total$ $3,367 $3,367 0.06 %
(a) Based on the amortized cost basis as of period end, divided by the period end amortized cost basis of the corresponding class of financing receivable.
(b) The table presented above excludes loans that were paid off or otherwise no longer included in the loan portfolio of period end.
(c) Each with --% not meaningful
Payment Delay (Only)
(Dollars in thousands)Forbearance PlanPayment DeferralTerm ExtensionForbearance Plan and Term ExtensionTotal
Percentage of Total by Loan Category(a)(b)(c)
During the Six Months Ended June 30, 2024
Commercial real estate— — $561 $— $561 0.03 %
Commercial and industrial— — 11,171 — 11,171 0.89 %
Leasing— 199 — — 199 0.05 %
Residential real estate— — 76 — 76 0.01 %
Home equity lines of credit— — 64 — 64 0.03 %
Consumer, indirect— — — — %
Total$ $199 $11,880 $ $12,079 0.19 %
During the Six Months Ended June 30, 2023
Construction$— $1,600 $— $— $1,600 0.38 %
Commercial real estate194 — 48 — 242 0.01 %
Commercial and industrial— — 3,325 306 3,631 0.31 %
Residential real estate— — 220 — 220 0.03 %
Total$194 $1,600 $3,593 $306 $5,693 0.10 %
(a) Based on the amortized cost basis as of period end, divided by the period end amortized cost basis of the corresponding class of financing receivable.
(b) The table presented above excludes loans that were paid off or otherwise no longer included in the loan portfolio as of period end.
(c) Each with --% not meaningful
The following tables summarizes the financial impacts of loan modifications and payment deferrals made to loans during both the three and six months ended June 30, 2024 and June 30, 2023, presented by loan classification.
Weighted-Average Term Extension
(in months)
Average Amount Capitalized as a Result of a Payment Delay(a)
During the Three Months Ended June 30, 2024
Commercial and industrial28— 
Home equity lines of credit120— 
Consumer, indirect2— 
During the Three Months Ended June 30, 2023
Commercial real estate12— 
Commercial and industrial5— 
(a) Represents the average amount of delinquency-related amounts that were capitalized as part of the loan balance. Amounts are in whole dollars.

Weighted-Average Term Extension
(in months)
Average Amount Capitalized as a Result of a Payment Delay(a)
During the Six Months Ended June 30, 2024
Commercial real estate6$— 
Commercial and industrial7— 
Leasing9— 
Residential real estate2— 
Home equity lines of credit120— 
Consumer, indirect2— 
During the Six Months Ended June 30, 2023
Commercial real estate12— 
Commercial and industrial5— 
Residential real estate2108,969 
Consumer, indirect2— 
(a) Represents the average amount of delinquency-related amounts that were capitalized as part of the loan balance. Amounts are in whole dollars.
The following table displays an aging analysis of loans that were modified during the 12 months prior to June 30, 2024, presented by classification and class of financing receivable.
As of June 30, 2024
(Dollars in thousands)30-59 Days Delinquent60-89 Days Delinquent90+ Days DelinquentTotal DelinquentCurrentTotal
Construction$— $70 $— $70 $— $70 
Commercial real estate— — 193 193 2,321 2,514 
Commercial and industrial— — 31 31 12,583 12,614 
Leasing— — — — 199 199 
Residential real estate— — 76 76 25 101 
Home equity lines of credit— — — — 122 122 
Consumer, indirect— — — — 
Total loans modified(a)
$ $70 $300 $370 $15,258 $15,628 
(a) Represents the amortized cost basis as of period end.
The following table displays an aging analysis of loans that were modified on or after January 1, 2023, the date Peoples adopted ASU 2022-02, through June 30, 2023, presented by classification and class of financing receivable.
As of June 30, 2023
(Dollars in thousands)30-59 Days Delinquent60-89 Days Delinquent90+ Days DelinquentTotal DelinquentCurrentTotal
Construction$— $— $— $— $1,600 $1,600 
Commercial real estate— — — — 242 242
Commercial and industrial— — — — 3,631 3,631 
Residential real estate— — — — 220 220 
Total loans modified(a)
$ $ $ $ $5,693 $5,693 
(a) Represents the amortized cost basis as of period end.
Summary of Defaulted Financing Receivables Modified
The following tables display the amortized cost of loans that received a completed modification or payment deferral within the previous 12 months and that had a payment default in the periods presented. For purposes of this disclosure, Peoples defines loans that had a payment default as loans that were 90 days or more past due following a modification.
Payment Delay as a Result of a Payment Deferral (Only)(a)
For the Three Months Ended June 30, 2024
Commercial real estate$193 
Commercial and industrial$28 
Residential real estate$76 
Total loans that subsequently defaulted$297 
For the Six Months Ended June 30, 2024
Commercial real estate$193 
Commercial and industrial$31 
Residential real estate$76 
Total loans that subsequently defaulted$300 
For the Three and Six Month Ended June 30, 2023(b)
Consumer, indirect$11 
Total loans that subsequently defaulted$11 
(a) Represents the sum of amortized cost and gross charge-off as of period end. Excludes loans that liquidated either through foreclosure, deed-in-lieu of foreclosure, or a short sale.
(b) Accounting standard was implemented as of January 1, 2023, thus information above reflects loan modifications made on or after that date.
Summary of Activity in Allowance for Loan and Lease Losses
Changes in the allowance for credit losses for the three and six months ended June 30, 2024 and June 30, 2023 are summarized below:
(Dollars in thousands)
Beginning Balance, March 31, 2024
Initial Allowance for Acquired PCD Assets(Recovery of) Provision for Credit Losses (a)Charge-offsRecoveries
Ending Balance, June 30, 2024
Construction$701 $— $(28)$— $— $673 
Commercial real estate, other21,788 — (1,856)— (80)19,852 
Commercial and industrial10,581 — 408 (56)10 10,943 
Premium finance607 — 207 (55)763 
Leases12,889 — 4,533 (2,377)173 15,218 
Residential real estate5,866 — 69 (64)68 5,939 
Home equity lines of credit1,689 — 57 (9)— 1,737 
Consumer, indirect8,301 — 1,803 (1,567)117 8,654 
Consumer, direct2,279 — 179 (141)15 2,332 
Deposit account overdrafts121 — 286 (338)67 136 
Total$64,822 $ $5,658 $(4,607)$374 $66,247 
(a)Amount does not include the provision for the allowance for credit losses on unfunded commitments.
(Dollars in thousands)Beginning Balance, March 31, 2023Initial Allowance for Acquired PCD AssetsProvision for (Recovery of) Credit Losses (a)Charge-offsRecoveries
Ending Balance, June 30, 2023
Construction$1,273 $— $223 $— $— $1,496 
Commercial real estate, other16,474 280 2,968 (7)16 19,731 
Commercial and industrial8,307 376 1,905 (11)451 11,028 
Premium finance433 — 18 (23)431 
Leases9,109 — 1,783 (604)89 10,377 
Residential real estate6,504 254 (656)(59)69 6,112 
Home equity lines of credit1,717 13 (55)— 1,676 
Consumer, indirect7,781 — 641 (941)129 7,610 
Consumer, direct1,619 85 981 (78)35 2,642 
Deposit account overdrafts86 — 232 (263)53 108 
Total$53,303 $1,008 $8,096 $(2,041)$845 $61,211 
(a)Amount does not include the provision for the allowance for credit losses on unfunded commitments.
(Dollars in thousands)
Beginning Balance, December 31, 2023
Initial Allowance for Acquired PCD AssetsProvision for (Recovery of) Credit Losses (a)Charge-offsRecoveries
Ending Balance, June 30, 2024
Construction$699 $— $(26)$— $— $673 
Commercial real estate, other20,915 — (854)(212)19,852 
Commercial and industrial10,490 — 727 (291)17 10,943 
Premium finance484 — 376 (109)12 763 
Leases10,850 — 7,630 (3,647)385 15,218 
Residential real estate5,937 — (5)(144)151 5,939 
Home equity lines of credit1,588 — 151 (9)1,737 
Consumer, indirect8,590 — 2,904 (3,028)188 8,654 
Consumer, direct2,343 — 332 (367)24 2,332 
Deposit account overdrafts115 — 554 (674)141 136 
Total$62,011 $ $11,789 $(8,481)$928 $66,247 
(a)Amount does not include the provision for the allowance for credit losses on unfunded commitments.
(Dollars in thousands)Beginning Balance,
December 31, 2022
Initial Allowance for Acquired PCD AssetsProvision for (Recovery of) Credit Losses (a)Charge-offsRecoveries
Ending Balance, June 30, 2023
Construction$1,250 $— $255 $(9)$— $1,496 
Commercial real estate, other17,710 280 1,738 (40)43 19,731 
Commercial and industrial8,229 376 1,984 (12)451 11,028 
Premium finance344 — 121 (46)12 431 
Leases8,495 — 2,786 (1,073)169 10,377 
Residential real estate6,357 254 (497)(100)98 6,112 
Home equity lines of credit1,693 13 44 (74)— 1,676 
Consumer, indirect7,448 — 1,824 (1,870)208 7,610 
Consumer, direct1,575 85 1,114 (182)50 2,642 
Deposit account overdrafts61 — 412 (490)125 108 
Total$53,162 $1,008 $9,781 $(3,896)$1,156 $61,211 
(a)Amount does not include the provision for the allowance for credit losses on unfunded commitments.