XML 38 R27.htm IDEA: XBRL DOCUMENT v3.24.3
Loans and Leases (Tables)
9 Months Ended
Sep. 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)September 30,
2024
December 31, 2023
Construction$320,094 $364,019 
Commercial real estate, other2,180,491 2,196,957 
Commercial and industrial1,250,152 1,184,986 
Premium finance286,983 203,177 
Leases433,009 414,060 
Residential real estate777,542 791,095 
Home equity lines of credit233,109 208,675 
Consumer, indirect677,056 666,472 
Consumer, direct112,198 128,769 
Deposit account overdrafts1,205 986 
Total loans, at amortized cost$6,271,839 $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:
September 30, 2024December 31, 2023
(Dollars in thousands)
Nonaccrual (a)
Accruing Loans 90+ Days Past Due
Nonaccrual (a)
Accruing Loans 90+ Days Past Due
Commercial real estate, other4,416 3,838 2,816 78 
Commercial and industrial7,008 413 2,758 316 
Premium finance— 7,771 — 1,355 
Leases12,428 12,675 8,436 3,826 
Residential real estate6,658 2,442 7,921 877 
Home equity lines of credit1,461 292 1,022 171 
Consumer, indirect2,726 46 2,412 68 
Consumer, direct110 101 112 25 
Total loans, at amortized cost$34,807 $27,578 $25,477 $6,716 
(a) There were $3.8 million of nonaccrual loans for which there was no allowance for credit losses at September 30, 2024 and $1.2 million of nonaccrual loans for which there was no allowance for credit losses at December 31, 2023.
Summary of Aging of The Recorded Investment In Past Due Loans and Leases
The following table presents the aging of the amortized cost of past due loans:
Loans Past Due
Current
Loans
Total
Loans
(Dollars in thousands)30 - 59 days60 - 89 days90 + DaysTotal
September 30, 2024
Construction$— $— $— $— $320,094 $320,094 
Commercial real estate, other1,349 2,437 7,073 10,859 2,169,632 2,180,491 
Commercial and industrial3,818 674 5,159 9,651 1,240,501 1,250,152 
Premium finance2,267 1,192 7,771 11,230 275,753 286,983 
Leases3,417 10,788 24,894 39,099 393,910 433,009 
Residential real estate3,144 3,100 4,915 11,159 766,383 777,542 
Home equity lines of credit1,324 276 1,094 2,694 230,415 233,109 
Consumer, indirect7,405 1,542 1,436 10,383 666,673 677,056 
Consumer, direct619 76 168 863 111,335 112,198 
Deposit account overdrafts— — — — 1,205 1,205 
Total loans, at amortized cost$23,343 $20,085 $52,510 $95,938 $6,175,901 $6,271,839 
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)September 30, 2024December 31, 2023
Securing public and trust department deposits, and repurchase agreements:
     Available-for-sale$542,071 $713,033 
     Held-to-maturity553,726 559,142 
Securing additional borrowing capacity at the FHLB and the FRB:
     Available-for-sale119,453 85,899 
     Held-to-maturity63,768 39,607 
Loans pledged are summarized as follows:
(Dollars in thousands)September 30, 2024December 31, 2023
Loans pledged to FHLB$1,223,345 $1,206,134 
Loans pledged to FRB458,896 419,245 
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 September 30, 2024:
Term Loans at Amortized Cost by Origination YearRevolving Loans Converted to Term
(Dollars in thousands)20242023202220212020PriorRevolving Loans
Total
Loans
Construction

  Pass$30,953 $137,659 $96,715 $34,864 $3,179 $13,887 $— $— $317,257 
  Special mention— — — — — 117 — — 117 
  Substandard— 1,172 1,548 — — — — — 2,720 
     Total30,953 138,831 98,263 34,864 3,179 14,004 — — 320,094 
Current period gross charge-offs— — — — — — — 
Commercial real estate, other

  Pass81,458 213,204 343,926 372,653 207,222 819,922 40,812 — 2,079,197 
  Special mention273 4,197 13,939 1,649 1,312 8,059 291 32 29,720 
  Substandard147 2,024 2,720 18,487 9,326 38,233 627 — 71,564 
  Doubtful— — — — — 10 — — 10 
     Total81,878 219,425 360,585 392,789 217,860 866,224 41,730 32 2,180,491 
Current period gross charge-offs— — 212 — — — 212 
Commercial and industrial
  Pass152,272 209,996 139,519 151,660 70,178 183,600 245,498 4,865 1,152,723 
  Special mention51 3,591 10,820 5,095 11,569 16,937 19,815 5,500 67,878 
  Substandard210 250 4,567 12,962 4,570 1,800 3,061 — 27,420 
  Doubtful— — 1,968 — — 163 — — 2,131 
     Total152,533 213,837 156,874 169,717 86,317 202,500 268,374 10,365 1,250,152 
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 78 457 550 
Premium Finance
Pass275,918 10,906 159 — — — — — 286,983 
Total275,918 10,906 159 — — — — — 286,983 
Current period gross charge-offs110 33 — — — 146 
Leases
Pass157,377 141,799 74,242 30,513 6,061 2,426 — — 412,418 
Special mention2,660 1,371 2,555 57 17 — — 6,663 
Substandard479 4,516 2,580 1,569 384 380 — — 9,908 
Doubtful686 1,824 722 596 — — — — 3,828 
Loss— — — 192 — — — — 192 
Total161,202 149,510 80,099 32,927 6,462 2,809 — — 433,009 
Current period gross charge-offs473 2,560 3,530 731 68 38 7,400 
Residential real estate
Pass59,312 68,606 86,717 131,488 53,439 367,695 — — 767,257 
Substandard162 613 264 756 172 8,212 — — 10,179 
Loss10 28 — — — 68 — — 106 
     Total59,484 69,247 86,981 132,244 53,611 375,975 — — 777,542 
Current period gross charge-offs— — 46 — 93 144 
Home equity lines of credit
Pass44,119 39,248 38,761 31,113 17,335 60,983 25 1,463 231,584 
Substandard— 19 168 46 34 1,250 — — 1,517 
Loss— — — — — — — 
     Total44,119 39,267 38,929 31,159 17,369 62,241 25 1,463 233,109 
Current period gross charge-offs— — — — — 11 11 
Consumer, indirect
Pass193,608 193,746 165,610 65,132 36,265 19,405 — — 673,766 
Substandard173 755 861 797 327 317 — — 3,230 
Loss10 15 14 — 12 — — 60 
     Total193,790 194,511 166,486 65,943 36,592 19,734 — — 677,056 
Current period gross charge-offs211 1,730 1,426 598 130 753 4,848 
Consumer, direct
Pass37,653 28,873 24,753 11,161 5,007 4,507 — — 111,954 
Term Loans at Amortized Cost by Origination YearRevolving Loans Converted to Term
(Dollars in thousands)20242023202220212020PriorRevolving Loans
Total
Loans
Substandard— 55 50 21 99 — — 231 
Loss10 — — — — — — 13 
     Total37,663 28,931 24,803 11,182 5,013 4,606 — — 112,198 
Current period gross charge-offs96 197 43 11 180 529 
Deposit account overdrafts1,205 — — — — — — — 1,205 
Current period gross charge-offs1,232 — — — — — 1,232 
Total loans, at amortized cost1,038,745 1,064,465 1,013,179 870,825 426,403 1,548,093 310,129 11,860 6,271,839 
Total current period gross charge-offs$1,921 $4,496 $5,444 $1,392 $287 $1,532 $15,072 
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 
Term Loans at Amortized Cost by Origination Year
(Dollars in thousands)20232022202120202019PriorRevolving LoansRevolving Loans Converted to Term
Total
Loans
Leases
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 cost1,352,734 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)September 30, 2024December 31, 2023
Commercial real estate, other$1,923 $— 
Premium finance4,034 — 
Leases3,805 — 
Commercial and industrial1,186 — 
Residential real estate— 501 
Total collateral dependent loans$10,948 $501 
Summary of Financing Receivables Modified
The following tables display the amortized cost of loans that were restructured during the three and nine months ended September 30, 2024 and September 30, 2023, presented by loan classification.
Payment Delay (Only)
(Dollars in thousands)Payment DeferralTerm ExtensionTotal
Percentage of Total by Loan Category(a)(b)(c)
During the Three Months Ended September 30, 2024
Commercial real estate$— $561 $561 0.03 %
Commercial and industrial— 9,057 9,057 0.72 %
Leasing14 637 651 0.15 %
Residential real estate— 17 17 — %
Consumer, indirect14 15 — %
Total$28 $10,273 $10,301 0.16 %
During the Three Months Ended September 30, 2023
Commercial real estate— 901 901 0.04 %
Commercial and industrial— 2,352 2,352 0.21 %
Residential real estate— 25 25 — %
Home equity lines of credit— 52 52 0.03 %
Total$ $3,330 $3,330 0.05 %
(a) Based on the amortized cost basis as of period end, divided by the period end amortized cost basis of the corresponding class of financing receivable.
(b) The table presented above excludes loans that were paid off or otherwise no longer included in the loan portfolio as of period end.
(c) Each with --% not meaningful
Payment Delay (Only)
(Dollars in thousands)Forbearance PlanPayment DeferralTerm ExtensionForbearance Plan and Term ExtensionTotal
Percentage of Total by Loan Category(a)(b)(c)
During the Nine Months Ended September 30, 2024
Commercial real estate$— $— $1,122 $— $1,122 0.05 %
Commercial and industrial— — 19,148 — 19,148 1.53 %
Leasing— 214 637 — 851 0.20 %
Residential real estate— — 90 — 90 0.01 %
Home equity lines of credit— — 64 — 64 0.03 %
Consumer, indirect— 14 — 22 — %
Total$ $228 $21,069 $ $21,297 0.34 %
During the Nine Months Ended September 30, 2023
Construction$— $1,598 $— $— $1,598 0.43 %
Commercial real estate189 — 1,089 — 1,278 0.06 %
Commercial and industrial— — 5,130 293 5,423 0.48 %
Residential real estate— — 243 — 243 0.03 %
Home equity lines of credit— — 203 — 203 0.10 %
Total$189 $1,598 $6,665 $293 $8,745 0.14 %
(a) Based on the amortized cost basis as of period end, divided by the period end amortized cost basis of the corresponding class of financing receivable.
(b) The table presented above excludes loans that were paid off or otherwise no longer included in the loan portfolio as of period end.
(c) Each with --% not meaningful
The following tables summarize the financial impacts of loan modifications and payment deferrals made to loans during both the three and nine months ended September 30, 2024 and September 30, 2023, presented by loan classification.
Weighted-Average Term Extension
(in months)
Average Amount Capitalized as a Result of a Payment Delay(a)
During the Three Months Ended September 30, 2024
Commercial real estate6$— 
Commercial and industrial7— 
Leasing12— 
Residential real estate1— 
Consumer, indirect13— 
During the Three Months Ended September 30, 2023
Commercial real estate4— 
Commercial and industrial4— 
Residential real estate240— 
Home equity lines of credit217— 
(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 Nine Months Ended September 30, 2024
Commercial real estate6$— 
Commercial and industrial7— 
Leasing12— 
Residential real estate1— 
Home equity lines of credit120— 
Consumer, indirect3— 
During the Nine Months Ended September 30, 2023
Commercial real estate6— 
Commercial and industrial5— 
Residential real estate2138,072 
Home equity lines of credit189— 
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 September 30, 2024, presented by classification and class of financing receivable.
As of September 30, 2024
(Dollars in thousands)30-59 Days Delinquent60-89 Days Delinquent90+ Days DelinquentTotal DelinquentCurrentTotal
Commercial real estate— — 193 193 2,311 2,504 
Commercial and industrial50 — 28 78 11,363 11,441 
Leasing— — 26 26 174 200 
Residential real estate— — 34 34 63 97 
Home equity lines of credit— — — — 120 120 
Consumer, indirect— — — — 
Total loans modified(a)
$50 $ $281 $331 $14,038 $14,369 
(a) Represents the amortized cost basis as of period end.
The following table displays an aging analysis of loans that were modified on or after January 1, 2023, the date Peoples adopted ASU 2022-02, through September 30, 2023, presented by classification and class of financing receivable.
As of September 30, 2023
(Dollars in thousands)30-59 Days Delinquent60-89 Days Delinquent90+ Days DelinquentTotal DelinquentCurrentTotal
Construction$— $— $— $— $1,598 $1,598 
Commercial real estate— 76 — 76 1,203 1,279 
Commercial and industrial— 276 2,042 2,318 3,105 5,423 
Residential real estate— — — — 242 242 
Home equity lines of credit— — — — 203 203 
Total loans modified(a)
$ $352 $2,042 $2,394 $6,351 $8,745 
(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 September 30, 2024
Leasing26 
Total loans that subsequently defaulted$26 
For the Nine Months Ended September 30, 2024
Commercial real estate193 
Commercial and industrial28 
Leasing26 
Residential real estate73 
Total loans that subsequently defaulted$320 
For the Three Months Ended September 30, 2023(b)
Commercial and industrial245 
Total loans that subsequently defaulted$245 
For the Nine Months Ended September 30, 2023(b)
Commercial and industrial245 
Consumer, indirect11 
Total loans that subsequently defaulted$256 
(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 nine months ended September 30, 2024 and September 30, 2023 are summarized below:
(Dollars in thousands)
Beginning Balance, June 30, 2024
Initial Allowance for Acquired PCD Assets(Recovery of) Provision for Credit Losses (a)Charge-offsRecoveries
Ending Balance, September 30, 2024
Construction$673 $— $181 $— $— $854 
Commercial real estate, other19,852 — (2,713)— 100 17,239 
Commercial and industrial10,943 — 907 (259)11,592 
Premium finance763 — (19)(37)711 
Leases15,218 — 5,449 (3,753)56 16,970 
Residential real estate5,939 — 61 — 58 6,058 
Home equity lines of credit1,737 — 69 (2)— 1,804 
Consumer, indirect8,654 — 1,904 (1,820)186 8,924 
Consumer, direct2,332 — 181 (162)19 2,370 
Deposit account overdrafts136 — 456 (558)83 117 
Total$66,247 $ $6,476 $(6,591)$507 $66,639 
(a)Amount does not include the provision for the allowance for credit losses on unfunded commitments.
(Dollars in thousands)Beginning Balance, June 30, 2023Initial Allowance for Acquired PCD AssetsProvision for (Recovery of) Credit Losses (a)Charge-offsRecoveries
Ending Balance, September 30, 2023
Construction$1,496 $— $(255)$— $— $1,241 
Commercial real estate, other19,731 138 1,569 (278)97 21,257 
Commercial and industrial11,028 (630)(199)10,205 
Premium finance431 — 66 (33)12 476 
Leases10,377 — 2,052 (905)168 11,692 
Residential real estate6,112 156 (50)27 6,251 
Home equity lines of credit1,676 (9)(32)— 1,640 
Consumer, indirect7,610 — 683 (926)149 7,516 
Consumer, direct2,642 (43)(92)11 2,519 
Deposit account overdrafts108 — 289 (319)49 127 
Total$61,211 $153 $3,878 $(2,834)$516 $62,924 
(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, September 30, 2024
Construction$699 $— $155 $— $— $854 
Commercial real estate, other20,915 — (3,567)(212)103 17,239 
Commercial and industrial10,490 — 1,634 (550)18 11,592 
Premium finance484 — 357 (146)16 711 
Leases10,850 — 13,079 (7,400)441 16,970 
Residential real estate5,937 — 56 (144)209 6,058 
Home equity lines of credit1,588 — 220 (11)1,804 
Consumer, indirect8,590 — 4,808 (4,848)374 8,924 
Consumer, direct2,343 — 513 (529)43 2,370 
Deposit account overdrafts115 — 1,010 (1,232)224 117 
Total$62,011 $ $18,265 $(15,072)$1,435 $66,639 
(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, September 30, 2023
Construction$1,250 $— $— $(9)$— $1,241 
Commercial real estate, other17,710 418 3,307 (318)140 21,257 
Commercial and industrial8,229 379 1,354 (211)454 10,205 
Premium finance344 — 187 (79)24 476 
Leases8,495 — 4,838 (1,978)337 11,692 
Residential real estate6,357 260 (341)(150)125 6,251 
Home equity lines of credit1,693 18 35 (106)— 1,640 
Consumer, indirect7,448 — 2,507 (2,796)357 7,516 
Consumer, direct1,575 86 1,071 (274)61 2,519 
Deposit account overdrafts61 — 701 (809)174 127 
Total$53,162 $1,161 $13,659 $(6,730)$1,672 $62,924 
(a)Amount does not include the provision for the allowance for credit losses on unfunded commitments.