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Regulatory matters

3 Months Ended

Mar. 31, 2025

16. Regulatory matters

The Company’s ability to pay dividends to its shareholders is largely dependent on Peoples Bank’s ability to pay dividends to the Company. Regulations with respect to the banking industry limit the amount of dividends that may be paid without prior approval of Peoples Bank’s regulatory agency.

The Company and the Peoples Bank are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material adverse effect on the Company’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and Peoples Bank must meet specific capital guidelines that involve quantitative measures of the Company’s and Peoples Bank’s assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The Company’s and Peoples Bank’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. Management believes, as of March 31, 2025 and December 31, 2024, that the Company and Peoples Bank met all applicable capital adequacy requirements.

Current quantitative measures established by regulation to ensure capital adequacy require Peoples Bank to maintain minimum amounts and ratios (set forth in the tables below) of Total capital, Tier I capital, and Tier I common equity (as defined in the regulations) to risk-weighted assets (as defined), and of Tier I capital (as defined) to average assets (as defined). The following tables present summary information regarding Peoples Bank’s risk-based capital and related ratios at March 31, 2025 and December 31, 2024:


									Minimum
							Minimum		Required To
							Required For		Be Well
					Minimum		Capital		Capitalized
					Required For		Adequacy		Under Prompt
					Capital		Purposes with		Corrective
					Adequacy		Conservation		Action
	Peoples Bank				Purposes		Buffer		Regulations
(Dollars in thousands)		Amount	Ratio		Ratio		Ratio		Ratio
March 31, 2025

Total capital ( to risk-weighted assets)	$	482,841	12.45	%	8.00	%	10.50	%	10.00	%

Tier I capital ( to risk-weighted assets)		441,110	11.38		6.00		8.50		8.00

Tier I common equity ( to risk-weighted assets)		441,110	11.38		4.50		7.00		6.50

Tier I capital ( to average assets)		441,110	8.92		4.00		4.00		5.00

Total risk-weighted assets		3,876,833

Total average assets		4,942,568


									Minimum
							Minimum		Required To
							Required For		Be Well
					Minimum		Capital		Capitalized
					Required For		Adequacy		Under Prompt
					Capital		Purposes with		Corrective
					Adequacy		Conservation		Action
	Peoples Bank				Purposes		Buffer		Regulations
(Dollars in thousands)		Amount	Ratio		Ratio		Ratio		Ratio
December 31, 2024

Total capital ( to risk-weighted assets)	$	472,614	12.04	%	8.00	%	10.50	%	10.00	%

Tier I capital ( to risk-weighted assets)		429,958	10.95		6.00		8.50		8.00

Tier I common equity ( to risk-weighted assets)		429,958	10.95		4.50		7.00		6.50

Tier I capital ( to average assets)		429,958	8.37		4.00		4.00		5.00

Total risk-weighted assets		3,925,335

Total average assets		5,135,766

- Definition

The entire disclosure for regulatory capital requirement for depository and lending institutions. Institutions include, but not are not limited to, finance company, insured depository institution, bank holding company, savings and loan association holding company, bank and savings institution not federally insured, mortgage company, foreign financial institution and credit union.

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