Off-Balance Sheet Risk

12 Months Ended

Dec. 31, 2023

Off-Balance-Sheet, Credit Loss, Liability [Abstract]

Loan Commitments and Standby Letters of Credit

Loan commitments are made to accommodate the financial needs of Peoples’ customers. Standby letters of credit are instruments issued by Peoples Bank guaranteeing the beneficiary payment by Peoples Bank in the event of default by Peoples Bank’s customer in the nonperformance of an obligation or service. Historically, most loan commitments and standby letters of credit expire unused. Peoples’ exposure to credit loss in the event of nonperformance by the counter-party to the financial instrument for loan commitments and standby letters of credit is represented by the contractual amount of those instruments. Peoples uses the same underwriting standards in making commitments and conditional obligations as it does for on-balance sheet instruments. The amount of collateral obtained is based on management’s credit evaluation of the customer. Collateral held varies, but may include accounts receivable; inventory; property, plant, and equipment; and income-producing commercial properties.

The total amounts of loan commitments and standby letters of credit at December 31 were:


(Dollars in thousands)	2023		2022
Home equity lines of credit	$	244,367	$	197,995
Unadvanced construction loans	349,850		270,229
Other loan commitments	769,759		730,015
Loan commitments	1,363,976		1,198,239
Standby letters of credit	$	14,318	$	15,451