Related party transactions |
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| Related party transactions | 13. Related party transactions In conducting its business, Peoples has engaged in and intends to continue to engage in banking and financial transactions with directors, executive officers and their related parties. The Bank has granted loans, letters of credit and lines of credit to directors, executive officers and their related parties. The following table summarizes the changes in the total amounts of such outstanding loans, advances under lines of credit, net of any participations sold, as well as repayments for the six months ended June 30, 2026 and 2025.
At June 30, 2026 and December 31, 2025, there were no loans to directors, executive officers and their related parties that were not performing in accordance with the original terms of the loan agreements. Deposits from directors, executive officers and their related parties held by the Bank at June 30, 2026, and December 31, 2025, were $164.6 million and $161.5 million, respectively. In the course of its operations, the Bank acquires goods and services from, and transacts business with various companies of related parties, which include, but are not limited to legal services, rent, vehicle repair and dealer reserve payments. The Bank recorded payments to related parties for goods and services of $147 thousand and $225 thousand for the three and six months ended June 30, 2026, and $50 thousand and $136 thousand for the three and six months ended June 30, 2025. On June 29, 2026, the Company entered into a sale and leaseback agreement with a related party whereby the Company sold its branch office located at 141 North Main Street, Moscow, Lackawanna County, Pennsylvania to a related party for a net sales price of $643 thousand. Management evaluated the June 29, 2026 transaction under the sale and leaseback provisions of ASC 842, “Leases,” and the transaction satisfies the criteria for sale accounting under ASC 606, “Revenue from Contracts with Customers.” The net book value of the property sold was $376 thousand, and the Company recognized a gain on sale of $267 thousand which is included in net gains on sale of fixed assets in the consolidated statements of income and comprehensive income for the three and six months ended June 30, 2026. The Company immediately leased back a portion of the property to operate as a drive-through-only branch under a five-year noncancelable lease with the first monthly rental payment of $3 thousand due on July 1, 2026. On June 29, 2026, the commencement date, the Company recorded a and corresponding of $183 thousand. |
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