Regulatory Matters

12 Months Ended

Dec. 31, 2015

Regulatory Matters [Abstract]

Regulatory Capital Requirements under Banking Regulations

Regulatory Matters

The following is a summary of certain regulatory matters affecting Peoples and its subsidiaries:

Federal Reserve Requirements

Peoples Bank is required to maintain a minimum level of reserves, consisting of cash on hand and non-interest-bearing balances with the FRB, based on the amount of deposit liabilities. Average required reserve balances were approximately $16.3 million and $12.2 million in 2015 and 2014, respectively.

Limits on Dividends

The primary source of funds for the dividends paid by Peoples is dividends received from Peoples Bank. The payment of dividends by Peoples Bank is subject to various banking regulations. The most restrictive provision requires regulatory approval if dividends declared in any calendar year exceed the total net profits of that year plus the retained net profits of the preceding two years. At December 31, 2015, Peoples Bank had approximately $2.6 million of net profits available for distribution to Peoples as dividends without regulatory approval.

Capital Requirements

Peoples and Peoples Bank are subject to various regulatory capital guidelines administered by the banking regulatory agencies. Under capital adequacy requirements and the regulatory framework for prompt corrective action, Peoples and Peoples Bank must meet specific capital guidelines that involve quantitative measures of each entity's assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. Peoples' and Peoples Bank's capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. Failure to meet future minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by the regulators that, if undertaken, could have a material effect on Peoples' financial results.

Quantitative measures established by regulation to ensure capital adequacy, and in effect at December 31, 2015, required Peoples and Peoples Bank to maintain minimum amounts and ratios of Common Equity Tier 1 capital, Tier 1 capital and Total capital (as defined in the regulations) to risk-weighted assets (as defined), and of Tier I capital (as defined) to average assets (as defined). Peoples and Peoples Bank met all capital adequacy requirements at December 31, 2015.

As of December 31, 2015, the most recent notifications from the banking regulatory agencies categorized Peoples and Peoples Bank as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized, Peoples and Peoples Bank must maintain minimum Common Equity Tier 1, Tier 1 risk-based, Total risk-based and Tier I leverage ratios as set forth in the table below. There are no conditions or events since these notifications that management believes have changed Peoples or Peoples Bank's category.

Peoples and Peoples Bank's actual capital amounts and ratios as of December 31 are also presented in the following table:

	2015				2014
(Dollars in thousands)	Amount		Ratio		Amount		Ratio
PEOPLES
Common Equity Tier 1 (1)
Actual	288,416		13.4	%	N/A		N/A
For capital adequacy	97,083		4.5	%	N/A		N/A
To be well capitalized	140,232		6.5	%	N/A		N/A
Tier 1 (2)
Actual	$	295,151	13.7	%	$	241,707	14.3	%
For capital adequacy	129,445		6.0	%	67,519		4.0	%
To be well capitalized	172,593		8.0	%	101,278		6.0	%
Total Capital (3)
Actual	$	313,974	14.6	%	$	261,371	15.5	%
For capital adequacy	172,593		8.0	%	135,037		8.0	%
To be well capitalized	215,741		10.0	%	168,797		10.0	%
Tier 1 Leverage (4)
Actual	$	295,151	9.5	%	$	241,707	9.9	%
For capital adequacy	123,973		4.0	%	97,470		4.0	%
To be well capitalized	154,967		5.0	%	121,837		5.0	%
Net Risk-Weighted Assets	$	2,157,410			$	1,687,968
PEOPLES BANK
Common Equity Tier 1 (1)
Actual	257,045		11.9	%	N/A		N/A
For capital adequacy	96,916		4.5	%	N/A		N/A
To be well capitalized	139,989		6.5	%	N/A		N/A
Tier 1 (2)
Actual	$	277,045	12.9	%	$	205,710	12.9	%
For capital adequacy	129,221		6.0	%	67,464		4.0	%
To be well capitalized	172,295		8.0	%	101,196		6.0	%
Total Capital (3)
Actual	$	293,823	13.6	%	$	223,591	13.3	%
For capital adequacy	172,295		8.0	%	134,928		8.0	%
To be well capitalized	215,368		10.0	%	168,660		10.0	%
Tier 1 Leverage (4)
Actual	$	277,045	9.0	%	$	205,710	8.5	%
For capital adequacy	123,742		4.0	%	97,333		4.0	%
To be well capitalized	154,677		5.0	%	121,666		5.0	%
Net Risk-Weighted Assets	$	2,153,682			$	1,686,603
(1) Ratio represents Common Equity Tier 1 capital to net risk-weighted assets
(2) Ratio represents Tier 1 capital to net risk-weighted assets
(3) Ratio represents total capital to net risk-weighted assets
(4) Ratio represents Tier 1 capital to average assets