XML 46 R26.htm IDEA: XBRL DOCUMENT v3.24.0.1
Regulatory Matters
 12 Months Ended
Dec. 31, 2023
Regulatory Matters [Abstract]  
Regulatory Matters Regulatory Matters
The following is a summary of certain regulatory matters affecting Peoples and its subsidiaries:
Federal Reserve Board 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 total deposits. Average required reserve balances were $0 and $0 in 2023 and 2022, 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, 2023, Peoples Bank had approximately $153.2 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 classifications 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, 2023, required Peoples and Peoples Bank to maintain minimum amounts and ratios of common equity tier 1 capital, tier 1 capital and total capital (each as defined in the applicable 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, 2023.
At December 31, 2023, the most recent notification from the banking regulatory agencies categorized Peoples Bank as well capitalized under the regulatory framework for prompt corrective action applicable to Peoples Bank. Peoples maintained the capital required by the Federal Reserve Board to be deemed well capitalized and remain a financial holding company. 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 this notification that management believes have changed Peoples’ or Peoples Bank’s category.
Peoples’ and Peoples Bank’s actual capital amounts and ratios at December 31 are also presented in the following table:
 20232022
(Dollars in thousands)AmountRatioAmountRatio
PEOPLES    
Common Equity Tier 1 (a)
Actual$766,692 11.56 %$604,566 11.92 %
For capital adequacy298,393 4.50 %228,206 4.50 %
To be well capitalized431,011 6.50 %329,631 6.50 %
Tier 1 (b)
Actual$820,496 12.37 %$618,354 12.19 %
For capital adequacy397,857 6.00 %304,274 6.00 %
To be well capitalized530,476 8.00 %405,699 8.00 %
Total Capital (c)
    
Actual$873,226 13.17 %$662,421 13.06 %
For capital adequacy530,476 8.00 %405,699 8.00 %
To be well capitalized663,095 10.00 %507,124 10.00 %
Tier 1 Leverage (d)
Actual$820,496 9.48 %$618,354 8.92 %
For capital adequacy346,112 4.00 %277,302 4.00 %
To be well capitalized432,640 5.00 %346,628 5.00 %
Capital Conservation Buffer$342,750 5.17 %$256,722 5.06 %
Fully phased in165,774 2.50 %126,781 2.50 %
Net Risk-Weighted Assets$6,630,945 $5,071,240 
PEOPLES BANK
Common Equity Tier 1 (a)
Actual$783,790 11.85 %$593,609 11.72 %
For capital adequacy297,638 4.50 %227,843 4.50 %
To be well capitalized429,921 6.50 %329,107 6.50 %
Tier 1 (b)
Actual$783,790 11.85 %$593,609 11.72 %
For capital adequacy396,850 6.00 %303,791 6.00 %
To be well capitalized529,134 8.00 %405,055 8.00 %
Total Capital (c)
Actual$836,520 12.65 %$637,676 12.59 %
For capital adequacy529,134 8.00 %405,055 8.00 %
To be well capitalized661,417 10.00 %506,318 10.00 %
Tier 1 Leverage (d)
Actual$783,790 9.12 %$593,609 8.58 %
For capital adequacy343,613 4.00 %276,712 4.00 %
To be well capitalized429,517 5.00 %345,890 5.00 %
Capital Conservation Buffer$307,386 4.65 %$232,621 4.59 %
Fully phased in 165,354 2.50 %126,580 2.50 %
Net Risk-Weighted Assets$6,614,172 $5,063,183 
(a) Ratio represents common equity tier 1 capital to net risk-weighted assets
(b) Ratio represents tier 1 capital to net risk-weighted assets
(c) Ratio represents total capital to net risk-weighted assets
(d) Ratio represents tier 1 capital to average assets