Loans | Loans Peoples' loan portfolio has consisted of various types of loans originated primarily as a result of lending opportunities within Peoples' primary market areas of northeastern, central, southwestern and southeastern Ohio, west central West Virginia, and northeastern Kentucky. Acquired loans consist of loans purchased in 2012 or thereafter in a business combination. The major classifications of loan balances, excluding loans held for sale, were as follows at December 31: (Dollars in thousands) 2016 2015 Originated loans: Commercial real estate, construction $ 84,626 $ 63,785 Commercial real estate, other 531,557 471,184 Commercial real estate 616,183 534,969 Commercial and industrial 378,131 288,130 Residential real estate 307,490 288,783 Home equity lines of credit 85,617 74,176 Consumer, indirect 252,024 165,320 Consumer, other 67,579 61,813 Consumer 319,603 227,133 Deposit account overdrafts 1,080 1,448 Total originated loans $ 1,708,104 $ 1,414,639 Acquired loans: Commercial real estate, construction $ 10,100 $ 12,114 Commercial real estate, other 204,466 265,092 Commercial real estate 214,566 277,206 Commercial and industrial 44,208 63,589 Residential real estate 228,435 276,772 Home equity lines of credit 25,875 32,253 Consumer, indirect 808 1,776 Consumer, other 2,940 6,205 Consumer 3,748 7,981 Total acquired loans $ 516,832 $ 657,801 Total loans $ 2,224,936 $ 2,072,440 Peoples has acquired various loans through business combinations for which there was, at acquisition, evidence of deterioration of credit quality since origination and for which it was probable that all contractually required payments would not be collected, commonly referred to as "purchased credit impaired" loans. The carrying amounts of these loans included in the loan balances above are summarized as follows at December 31: (Dollars in thousands) 2016 2015 Commercial real estate $ 11,476 $ 16,893 Commercial and industrial 1,573 3,040 Residential real estate 23,306 27,155 Consumer 76 193 Total outstanding balance $ 36,431 $ 47,281 Net carrying amount $ 26,524 $ 35,064 Changes in the accretable yield for acquired purchased credit impaired loans during the year ended December 31, 2016 were as follows: (Dollars in thousands) Accretable Yield Balance, December 31, 2015 $ 7,042 Additions: Reclassification from nonaccretable to accretable 2,014 Accretion (1,924 ) Balance, December 31, 2016 $ 7,132 Peoples completed semi-annual re-estimations of cash flows on purchase credit impaired loans in February and August of 2016. The above reclassification from nonaccretable to accretable was related to the re-estimation of cash flows on the purchase credit impaired loan portfolios, coupled with the loans performing better than expected. The majority of the reclassification related to prepayment speeds decreasing in the residential loan portfolio, resulting in higher total expected cash flows. In 2017, Peoples will complete the re-estimation of cash flows on purchase credit impaired loans on an as needed basis and, in any event, at least annually in August. Cash flows expected to be collected on purchase credit impaired loans are estimated by incorporating several key assumptions similar to those used in the initial estimate of fair value. These key assumptions include probability of default, and the amount of actual prepayments after the acquisition date. Prepayments affect the estimated life of the loans and could change the amount of interest income, and possibly the amount of principal expected to be collected. In reforecasting future estimated cash flows, credit loss expectations are adjusted as necessary. Peoples has pledged certain loans secured by 1-4 family and multifamily residential mortgages under a blanket collateral agreement to secure borrowings from the FHLB. The amount of such pledged loans totaled $ 542.5 million and $ 554.8 million at December 31, 2016 and 2015 , respectively. Peoples also had pledged commercial loans to secure borrowings with the FRB. The outstanding balances of these loans totaled $ 152.0 million and $ 195.5 million at December 31, 2016 and 2015 , respectively. Related Party Loans In the normal course of its business, Peoples Bank has granted loans to certain directors and officers of Peoples Bancorp Inc., including their affiliates, families and entities in which they are principal owners. At December 31, 2016 , no related party loan was past due 90 or more days, renegotiated or on nonaccrual status. Activity in related party loans is presented in the table below. Other changes primarily consist of changes in related party status and new directors elected during the year. (Dollars in thousands) Balance, December 31, 2015 $ 19,221 New loans and disbursements 5,702 Repayments (7,330 ) Other changes — Balance, December 31, 2016 $ 17,593 Nonaccrual and Past Due Loans A loan is considered past due if any required principal and interest payments have not been received as of the date such payments were required to be made under the terms of the loan agreement. A loan may be placed on nonaccrual status regardless of whether or not such loan is considered past due. The recorded investments in loans on nonaccrual status and accruing loans delinquent for 90 days or more were as follows at December 31: Accruing Loans 90+ Days Past Due Nonaccrual Loans (Dollars in thousands) 2016 2015 2016 2015 Originated loans: Commercial real estate, construction $ 826 $ 921 $ — $ — Commercial real estate, other 9,934 7,041 — — Commercial real estate 10,760 7,962 — — Commercial and industrial 1,712 480 — 680 Residential real estate 3,778 3,057 183 169 Home equity lines of credit 383 321 — — Consumer, indirect 130 34 10 — Consumer, other 11 58 — 1 Consumer 141 92 10 1 Total originated loans $ 16,774 $ 11,912 $ 193 $ 850 Acquired loans: Commercial real estate, other $ 1,609 $ 469 $ 1,506 $ 2,425 Commercial and industrial 390 247 387 1,306 Residential real estate 2,317 798 1,672 1,353 Home equity lines of credit 231 98 — 35 Consumer, indirect — — 13 — Consumer, other 4 7 — — Consumer 4 7 13 — Total acquired loans $ 4,551 $ 1,619 $ 3,578 $ 5,119 Total loans $ 21,325 $ 13,531 $ 3,771 $ 5,969 The following table presents the aging of the recorded investment in past due loans at December 31: Loans Past Due Current Loans Total Loans (Dollars in thousands) 30 - 59 days 60 - 89 days 90 + Days Total 2016 Originated loans: Commercial real estate, construction $ — $ — $ 826 $ 826 $ 83,800 $ 84,626 Commercial real estate, other 1,420 225 9,305 10,950 520,607 531,557 Commercial real estate 1,420 225 10,131 11,776 604,407 616,183 Commercial and industrial 1,305 700 1,465 3,470 374,661 378,131 Residential real estate 7,288 1,019 1,895 10,202 297,288 307,490 Home equity lines of credit 316 45 248 609 85,008 85,617 Consumer, indirect 2,080 273 77 2,430 249,594 252,024 Consumer, other 346 38 — 384 67,195 67,579 Consumer 2,426 311 77 2,814 316,789 319,603 Deposit account overdrafts — — — — 1,080 1,080 Total originated loans $ 12,755 $ 2,300 $ 13,816 $ 28,871 $ 1,679,233 $ 1,708,104 Acquired loans: Commercial real estate, construction $ — $ — $ 40 $ 40 $ 10,060 $ 10,100 Commercial real estate, other 1,220 208 2,271 3,699 200,767 204,466 Commercial real estate 1,220 208 2,311 3,739 210,827 214,566 Commercial and industrial 148 3 777 928 43,280 44,208 Residential real estate 5,918 2,496 2,974 11,388 217,047 228,435 Home equity lines of credit 208 65 178 451 25,424 25,875 Consumer, indirect 4 — — 4 804 808 Consumer, other 51 — 13 64 2,876 2,940 Consumer 55 — 13 68 3,680 3,748 Total acquired loans $ 7,549 $ 2,772 $ 6,253 $ 16,574 $ 500,258 $ 516,832 Total loans $ 20,304 $ 5,072 $ 20,069 $ 45,445 $ 2,179,491 $ 2,224,936 Loans Past Due Current Loans Total Loans (Dollars in thousands) 30 - 59 days 60 - 89 days 90 + Days Total 2015 Originated loans: Commercial real estate, construction $ 913 $ — $ 8 $ 921 $ 62,864 $ 63,785 Commercial real estate, other 7,260 1,258 379 8,897 462,287 471,184 Commercial real estate 8,173 1,258 387 9,818 525,151 534,969 Commercial and industrial 1,437 215 767 2,419 285,711 288,130 Residential real estate 3,124 1,105 1,263 5,492 283,291 288,783 Home equity lines of credit 161 7 104 272 73,904 74,176 Consumer, indirect 790 168 — 958 164,362 165,320 Consumer, other 597 82 32 711 61,102 61,813 Consumer 1,387 250 32 1,669 225,464 227,133 Deposit account overdrafts — — — — 1,448 1,448 Total originated loans $ 14,282 $ 2,835 $ 2,553 $ 19,670 $ 1,394,969 $ 1,414,639 Acquired loans: Commercial real estate, construction $ — $ — $ 40 $ 40 $ 12,074 $ 12,114 Commercial real estate, other 1,592 352 2,730 4,674 260,418 265,092 Commercial real estate 1,592 352 2,770 4,714 272,492 277,206 Commercial and industrial 177 232 1,553 1,962 61,627 63,589 Residential real estate 4,910 2,480 1,745 9,135 267,637 276,772 Home equity lines of credit 318 20 95 433 31,820 32,253 Consumer, indirect 23 — — 23 1,753 1,776 Consumer, other 67 31 — 98 6,107 6,205 Consumer 90 31 — 121 7,860 7,981 Total acquired loans $ 7,087 $ 3,115 $ 6,163 $ 16,365 $ 641,436 $ 657,801 Total loans $ 21,369 $ 5,950 $ 8,716 $ 36,035 $ 2,036,405 $ 2,072,440 Credit Quality Indicators As discussed in Note 1, Peoples categorizes the majority of its loans into risk categories based upon an established risk grading matrix using a scale of 1 to 8. A description of the general characteristics of the risk grades used by Peoples is as follows: “Pass” (grades 1 through 4): Loans in this risk category involve borrowers of acceptable-to-strong credit quality and risk who have the apparent ability to satisfy their loan obligations. Loans in this risk category would possess sufficient mitigating factors, such as adequate collateral or strong guarantors possessing the capacity to repay the loan if required, for any weakness that may exist. “Watch” (grade 5): Loans in this risk category are the equivalent of the regulatory “Other Assets Especially Mentioned” classification. Loans in this risk category possess some credit deficiency or potential weakness, which requires a high level of management attention. Potential weaknesses include declining trends in operating earnings and cash flows and/or reliance on the secondary source of repayment. If left uncorrected, these potential weaknesses may result in noticeable deterioration of the repayment prospects for the loan or in Peoples' credit position. “Substandard” (grade 6): Loans in this risk category are inadequately protected by the borrower's current financial condition and payment capability, or by the collateral pledged, if any. Loans so classified have one or more well-defined weaknesses that jeopardize the orderly repayment of the loan. They are characterized by the distinct possibility that Peoples will sustain some loss if the deficiencies are not corrected. “Doubtful” (grade 7): Loans in this risk category have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or orderly repayment in full, on the basis of current existing facts, conditions and values, highly questionable and improbable. Possibility of loss is extremely high, but because of certain important and reasonably specific factors that may work to the advantage and strengthening of the exposure, classification of these loans as an estimate loss is deferred until their more exact status may be determined. “Loss” (grade 8): Loans in this risk category are considered to be non-collectible and of such little value that their continuance as bankable assets is not warranted. This does not mean each such loan has absolutely no recovery value, but rather it is neither practical nor desirable to defer writing off the loan, even though partial recovery may be obtained in the future. Charge-offs against the allowance for loan losses are taken in the period in which the loan becomes uncollectible. Consequently, Peoples typically does not maintain a recorded investment in loans within this risk category. Consumer loans and other smaller-balance loans are evaluated and categorized as “substandard”, “doubtful” or “loss” based upon the regulatory definition of these classes and consistent with regulatory requirements. All other loans not evaluated individually, nor meeting the regulatory conditions to be categorized as described above, would be considered as being “not rated”. The following table summarizes the risk category of Peoples' loan portfolio based upon the most recent analysis performed at December 31: Pass Rated Watch Substandard Doubtful Not Rated Total Loans (Dollars in thousands) (Grades 1 - 4) (Grade 5) (Grade 6) (Grade 7) 2016 Originated loans: Commercial real estate, construction $ 73,423 $ — $ 826 $ — $ 10,377 $ 84,626 Commercial real estate, other 505,029 11,855 14,673 — — 531,557 Commercial real estate 578,452 11,855 15,499 — 10,377 616,183 Commercial and industrial 346,791 15,210 16,130 — — 378,131 Residential real estate 47,336 957 12,828 304 246,065 307,490 Home equity lines of credit 465 — 135 — 85,017 85,617 Consumer, indirect 15 13 — — 251,996 252,024 Consumer, other 50 — — — 67,529 67,579 Consumer 65 13 — — 319,525 319,603 Deposit account overdrafts — — — — 1,080 1,080 Total originated loans $ 973,109 $ 28,035 $ 44,592 $ 304 $ 662,064 $ 1,708,104 Acquired loans: Commercial real estate, construction $ 10,046 $ — $ 54 $ — $ — $ 10,100 Commercial real estate, other 181,781 12,475 10,210 — — 204,466 Commercial real estate 191,827 12,475 10,264 — — 214,566 Commercial and industrial 42,809 227 978 194 — 44,208 Residential real estate 17,170 709 1,404 — 209,152 228,435 Home equity lines of credit 202 — — — 25,673 25,875 Consumer, indirect 51 — — — 757 808 Consumer, other 53 — — — 2,887 2,940 Consumer 104 — — — 3,644 3,748 Total acquired loans $ 252,112 $ 13,411 $ 12,646 $ 194 $ 238,469 $ 516,832 Total loans $ 1,225,221 $ 41,446 $ 57,238 $ 498 $ 900,533 $ 2,224,936 Pass Rated Watch Substandard Doubtful Not Rated Total Loans (Dollars in thousands) (Grades 1 - 4) (Grade 5) (Grade 6) (Grade 7) 2015 Originated loans: Commercial real estate, construction $ 62,225 $ — $ 913 $ — $ 647 $ 63,785 Commercial real estate, other 434,868 18,710 17,595 — 11 471,184 Commercial real estate 497,093 18,710 18,508 — 658 534,969 Commercial and industrial 259,183 23,601 5,344 — 2 288,130 Residential real estate 21,903 1,168 12,282 187 253,243 288,783 Home equity lines of credit 785 — 175 — 73,216 74,176 Consumer, indirect 114 — — — 165,206 165,320 Consumer, other 94 — 3 — 61,716 61,813 Consumer 208 — 3 — 226,922 227,133 Deposit account overdrafts — — — — 1,448 1,448 Total originated loans $ 779,172 $ 43,479 $ 36,312 $ 187 $ 555,489 $ 1,414,639 Acquired loans: Commercial real estate, construction $ 12,114 $ — $ — $ — $ — $ 12,114 Commercial real estate, other 233,630 13,866 17,521 75 — 265,092 Commercial real estate 245,744 13,866 17,521 75 — 277,206 Commercial and industrial 56,077 3,078 4,238 196 — 63,589 Residential real estate 18,027 1,409 1,786 — 255,550 276,772 Home equity lines of credit 316 — — — 31,937 32,253 Consumer, indirect 126 — — — 1,650 1,776 Consumer, other 130 — — — 6,075 6,205 Consumer 256 — — — 7,725 7,981 Total acquired loans $ 320,420 $ 18,353 $ 23,545 $ 271 $ 295,212 $ 657,801 Total loans $ 1,099,592 $ 61,832 $ 59,857 $ 458 $ 850,701 $ 2,072,440 Impaired Loans The following tables summarize loans classified as impaired at December 31: Unpaid Principal Balance Recorded Investment Total Recorded Investment Average Recorded Investment Interest Income Recognized With Without Related Allowance (Dollars in thousands) Allowance Allowance 2016 Commercial real estate, construction $ 894 $ — $ 866 $ 866 $ — $ 913 $ 3 Commercial real estate, other 20,029 7,474 12,227 19,701 803 18,710 700 Commercial real estate 20,923 7,474 13,093 20,567 803 19,623 703 Commercial and industrial 7,289 2,732 1,003 3,735 585 3,386 125 Residential real estate 27,703 138 27,393 27,531 24 27,455 1,419 Home equity lines of credit 908 — 908 908 — 717 44 Consumer, indirect 220 — 224 224 — 136 16 Consumer, other 130 — 130 130 — 138 13 Consumer 350 — 354 354 — 274 29 Total $ 57,173 $ 10,344 $ 42,751 $ 53,095 $ 1,412 $ 51,455 $ 2,320 2015 Commercial real estate, construction $ 957 $ — $ 957 957 $ — $ 227 $ 3 Commercial real estate, other 23,430 6,396 12,772 19,168 1,363 13,070 815 Commercial real estate 24,387 6,396 13,729 20,125 1,363 13,297 818 Commercial and industrial 5,670 1,224 4,130 5,354 351 4,049 246 Residential real estate 31,304 370 28,834 29,204 106 26,785 1,354 Home equity lines of credit 425 — 419 419 — 325 18 Consumer, indirect 118 — 103 103 — 84 — Consumer, other 265 — 195 195 — 210 28 Consumer 383 — 298 298 — 294 28 Total $ 62,169 $ 7,990 $ 47,410 $ 55,400 $ 1,820 $ 44,750 $ 2,464 At December 31, 2016 , Peoples' impaired loans shown in the table above included loans that were classified as troubled debt restructurings ("TDRs"). In assessing whether or not a borrower is experiencing financial difficulties, Peoples considers information currently available regarding the financial condition of the borrower. This information includes, but is not limited to, whether (i) the borrower is currently in payment default on any of the borrower's debt; (ii) a payment default is probable in the foreseeable future without the modification; (iii) the borrower has declared or is in the process of declaring bankruptcy; and (iv) the borrower's projected cash flow is insufficient to satisfy contractual payments due under the original terms of the loan without a modification. Peoples considers all aspects of the modification to loan terms to determine whether or not a concession has been granted to the borrower. Key factors considered by Peoples include the borrower's ability to access funds at a market rate for loans with similar risk characteristics, the significance of the modification relative to the unpaid principal loan balance or collateral value underlying the loan, and the significance of a delay in the timing of payments relative to the original contractual terms of the loan. The most common concessions granted by Peoples generally include one or more modifications to the terms of the loan, such as (i) a reduction in the interest rate for the remaining life of the loan, (ii) an extension of the maturity date at an interest rate lower than the current market rate for new debt with similar risk, (iii) a temporary period of interest-only payments, and (iv) a reduction in the contractual payment amount for either a short period or the remaining term of the loan. The following table summarizes the loans that were modified as TDRs during the years ended December 31, 2016 and 2015 . Recorded Investment (1) (Dollars in thousands) Number of Contracts Pre-Modification Post-Modification Remaining Recorded Investment 2016 Originated loans: Commercial real estate, other 3 $ 109 $ 109 $ 107 Commercial and industrial 7 828 836 750 Residential real estate 8 266 266 266 Home equity lines of credit 5 81 81 81 Consumer, indirect 14 164 164 164 Consumer, other 3 24 24 23 Consumer 17 188 188 187 Total 40 $ 1,472 $ 1,480 $ 1,391 Acquired loans: Commercial real estate, construction 2 $ 237 $ 237 $ 237 Residential real estate 14 1,080 1,082 1,076 Home equity lines of credit 4 260 260 250 Consumer, indirect 2 7 7 7 Consumer, other 3 15 15 15 Consumer 5 22 22 22 Total 25 $ 1,599 $ 1,601 $ 1,585 2015 Originated loans: Commercial real estate, other 5 $ 900 $ 900 $ 881 Commercial and industrial 4 834 834 834 Residential real estate 4 207 207 115 Home equity lines of credit 11 402 402 389 Consumer, indirect 5 51 51 50 Consumer, other 7 44 44 44 Consumer 12 95 95 94 Total 36 $ 2,438 $ 2,438 $ 2,313 Acquired loans: Residential real estate 4 $ 246 $ 246 $ 246 Home equity lines of credit 1 8 8 7 Total 5 $ 254 $ 254 $ 253 (1) The amounts shown are inclusive of all partial paydowns and charge-offs. Loans modified in a TDR that were fully paid down, charged-off or foreclosed upon by period end are not reported. The following table presents those loans modified in a TDR during the year that subsequently defaulted (i.e., 90 days or more past due following a modification) during the years ended December 31, 2016 and 2015 : 2016 2015 (Dollars in thousands) Number of Contracts Recorded Investment (1) Impact on the Allowance for Loan Losses Number of Contracts Recorded Investment (1) Impact on the Allowance for Loan Losses Acquired loans: Residential real estate — $ — $ — 1 $ 151 $ — Total — $ — $ — 1 $ 151 $ — (1) The amounts shown are inclusive of all partial paydowns and charge-offs. Loans modified in a TDR that were fully paid down, charged-off or foreclosed upon by period end are not reported. Peoples had no commitments to lend additional funds to the related borrowers whose loan terms have been modified in a TDR. Allowance for Loan Losses Changes in the allowance for loan losses in the periods ended December 31 , were as follows: (Dollars in thousands) Commercial Real Estate Commercial and Industrial Residential Real Estate Home Equity Lines of Credit Consumer Deposit Account Overdrafts Total Balance, January 1, 2016 $ 7,076 $ 5,382 $ 1,257 $ 732 $ 1,971 $ 121 $ 16,539 Charge-offs (24 ) (1,017 ) (588 ) (73 ) (2,655 ) (774 ) (5,131 ) Recoveries 1,209 306 278 56 1,285 175 3,309 Net recoveries (charge-offs) 1,185 (711 ) (310 ) (17 ) (1,370 ) (599 ) (1,822 ) (Recovery of) provision for loan losses (1,089 ) 1,682 35 (27 ) 2,229 649 3,479 Balance, December 31, 2016 $ 7,172 $ 6,353 $ 982 $ 688 $ 2,830 $ 171 $ 18,196 Period-end amount allocated to: Loans individually evaluated for impairment $ 803 $ 585 $ 24 $ — $ — $ — $ 1,412 Loans collectively evaluated for impairment 6,369 5,768 958 688 2,830 171 16,784 Balance, December 31, 2016 $ 7,172 $ 6,353 $ 982 $ 688 $ 2,830 $ 171 $ 18,196 Balance, January 1, 2015 $ 9,825 $ 4,036 $ 1,627 $ 694 $ 1,587 $ 112 $ 17,881 Charge-offs (242 ) (13,576 ) (628 ) (125 ) (1,353 ) (774 ) (16,698 ) Recoveries 104 98 315 119 755 171 1,562 Net charge-offs (138 ) (13,478 ) (313 ) (6 ) (598 ) (603 ) (15,136 ) (Recovery of) provision for loan losses (2,611 ) 14,824 (57 ) 44 982 612 13,794 Balance, December 31, 2015 $ 7,076 $ 5,382 $ 1,257 $ 732 $ 1,971 $ 121 $ 16,539 Period-end amount allocated to: Loans individually evaluated for impairment $ 1,363 $ 351 $ 106 $ — $ — $ — $ 1,820 Loans collectively evaluated for impairment 5,713 5,031 1,151 732 1,971 121 14,719 Balance, December 31, 2015 $ 7,076 $ 5,382 $ 1,257 $ 732 $ 1,971 $ 121 $ 16,539 The increase in the total allowance for loan losses in 2016, was primarily due to total loan growth of 7% , or $152.5 million , with growth of 8% in commercial loan balances and 7% in consumer loan balances. Indirect lending experienced the largest growth across all loan categories for the year, increasing by $85.7 million , or 51% . Commercial and industrial loan growth was $70.6 million , or 20% , for 2016. Historical loss rates are calculated using charge-offs and recoveries within each portfolio over the past five years. The large provision for commercial and industrial loans during 2015 was primarily related to a specific allowance for one relationship which was charged off in 2015. The reduction in the allowance for originated residential real estate was driven by net recoveries in recent years reducing the historical loss rates. The changes in the home equity lines of credit and consumer categories of the allowance for originated loan losses and the related provision for originated loan losses recorded during 2015 were driven by net charge-off activity and increases in the size of the respective loan portfolios. Allowance for Acquired Loan Losses Acquired loans are recorded at their fair value as of the acquisition date with no valuation allowance, and monitored for changes in credit quality and subsequent increases or decreases in expected cash flows. Decreases in expected cash flows of purchase credit impaired loans are recognized as an impairment, with the amount of the expected loss included in management's evaluation of the appropriateness of the allowance for loan losses. Management reforecasts the estimated cash flows expected to be collected on purchase credit impaired loans semi-annually. The methods utilized to estimate the required allowance for loan losses for nonimpaired acquired loans are similar to those utilized for originated loans; however, Peoples records a provision for loan losses only when the computed allowance exceeds the remaining fair value adjustment. The following table presents activity in the allowance for loan losses for acquired loans as of December 31: (Dollars in thousands) 2016 2015 Purchase credit impaired loans: Balance, January 1 $ 240 $ — Charge-offs (67 ) (63 ) Recoveries — — Net (charge-offs) recoveries (67 ) (63 ) Provision for loan losses 60 303 Balance, December 31 $ 233 $ 240 As of December 31, 2016 and 2015, the expected cash flows for purchase credit impaired loans had decreased from those estimated as of the respective acquisition dates, resulting in Peoples recording a provision for loan losses with respect to those acquired loans. |