Business Combinations (Tables)

3 Months Ended

6 Months Ended

Jun. 30, 2021

Jun. 30, 2021

Business Combinations [Abstract]

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed

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

(Dollars in thousands)
Total purchase price (a)	$	118,846
Net assets at fair value
Assets
Cash and due from banks	$	216
Leases	83,326
Allowance for credit losses	(493)
Net leases	82,833
Bank premises and equipment, net of accumulated depreciation	470
Other intangible assets	13,535
Other assets	845
Total assets	$	97,899
Liabilities
Accrued expenses and other liabilities	$	4,247
Total liabilities	$	4,247
Net assets	$	93,652
Goodwill	$	25,194

(a) Includes preliminary contingent consideration related to the bonus earn-out provision of $2.3 million.

Acquired leases are reported net of the unamortized fair value adjustment. The following table details the fair value adjustment for acquired leases as of the acquisition date:

(Dollars in thousands)
Non-purchased credit deteriorated leases
Contractual cash flows	$	85,762
Nonaccretable difference	3,456
Expected cash flows	82,306
Accretable yield	1,020
Fair value	$	83,326

Acquired purchased credit deteriorated leases are reported net of the unamortized fair value adjustment. The following table details the fair value adjustment for acquired purchased credit deteriorated leases as of the acquisition date:

(Dollars in thousands)
Purchased credit deteriorated leases
Par value	$	5,248
Allowance for credit losses	(493)
Premium	85
Fair value	$	4,840

Peoples recorded acquisition-related expenses during the second quarter of 2021, which included $7,000 in salaries and employee benefit costs; $2.0 million in professional fees; $6,000 in net occupancy and equipment expense; $43,000 in data processing and software expense; $15,000 in marketing expense; and $334,000 in other non-interest expense. For the first six months of 2021, Peoples recognized acquisition-related expenses of $7,000 in salaries and employee benefit costs; $3.8 million in professional fees; $6,000 in net occupancy and equipment expense; $43,000 in data processing and software expense; $17,000 in marketing expense; and $445,000 in other non-interest expense.

Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period

Acquired leases are reported net of the unamortized fair value adjustment. The following table details the fair value adjustment for acquired leases as of the acquisition date:

(Dollars in thousands)
Non-purchased credit deteriorated leases
Contractual cash flows	$	85,762
Nonaccretable difference	3,456
Expected cash flows	82,306
Accretable yield	1,020
Fair value	$	83,326

Acquired purchased credit deteriorated leases are reported net of the unamortized fair value adjustment. The following table details the fair value adjustment for acquired purchased credit deteriorated leases as of the acquisition date:

(Dollars in thousands)
Purchased credit deteriorated leases
Par value	$	5,248
Allowance for credit losses	(493)
Premium	85
Fair value	$	4,840

Peoples recorded acquisition-related expenses during the second quarter of 2021, which included $7,000 in salaries and employee benefit costs; $2.0 million in professional fees; $6,000 in net occupancy and equipment expense; $43,000 in data processing and software expense; $15,000 in marketing expense; and $334,000 in other non-interest expense. For the first six months of 2021, Peoples recognized acquisition-related expenses of $7,000 in salaries and employee benefit costs; $3.8 million in professional fees; $6,000 in net occupancy and equipment expense; $43,000 in data processing and software expense; $17,000 in marketing expense; and $445,000 in other non-interest expense.

Purchased Credit Deteriorated leases

Acquired purchased credit deteriorated leases are reported net of the unamortized fair value adjustment. The following table details the fair value adjustment for acquired purchased credit deteriorated leases as of the acquisition date:

(Dollars in thousands)
Purchased credit deteriorated leases
Par value	$	5,248
Allowance for credit losses	(493)
Premium	85
Fair value	$	4,840

Non-Purchased Credit Deteriorated Leases

Acquired leases are reported net of the unamortized fair value adjustment. The following table details the fair value adjustment for acquired leases as of the acquisition date:

(Dollars in thousands)
Non-purchased credit deteriorated leases
Contractual cash flows	$	85,762
Nonaccretable difference	3,456
Expected cash flows	82,306
Accretable yield	1,020
Fair value	$	83,326