Short-Term Borrowings

12 Months Ended

Dec. 31, 2012

Short-term Debt [Abstract]

Short-term Debt [Text Block]

Short-Term Borrowings

Peoples utilizes various short-term borrowings as sources of funds, which are summarized as follows:

(Dollars in thousands)	Retail Repurchase Agreements			FHLB Advances			Other Short-Term Borrowings
2012
Ending balance	$	32,769		$	15,000		$	—
Average balance	37,386			13,240			15
Highest month-end balance	44,905			39,900			—
Interest expense	57			17			—
Weighted-average interest rate:
End of year	0.15		%	0.15		%	—		%
During the year	0.15		%	0.12		%	0.74		%
2011
Ending balance	$	43,143		$	8,500		$	—
Average balance	41,542			5,525			47
Highest month-end balance	49,162			21,900			—
Interest expense	98			5			—
Weighted-average interest rate:
End of year	0.16		%	0.14		%	—		%
During the year	0.24		%	0.08		%	0.74		%
2010
Ending balance	$	51,509		$	—		$	—
Average balance	50,115			8,712			69
Highest month-end balance	51,762			57,400			—
Interest expense	252			10			—
Weighted-average interest rate:
End of year	0.41		%	—		%	—		%
During the year	0.50		%	0.11		%	—		%

Peoples’ retail repurchase agreements consist of overnight agreements with Peoples’ commercial customers and serve as a cash management tool.

The FHLB advances consist of overnight borrowings and other advances with an original maturity of one year or less.  These advances, along with the long-term advances disclosed in Note 9, are collateralized by residential mortgage loans and investment securities.  Peoples’ borrowing capacity with the FHLB is based on the amount of collateral pledged and the amount of FHLB common stock owned.

Other short-term borrowings consist of Federal Funds purchased and advances from the Federal Reserve Discount Window.  Federal Funds purchased are short-term borrowings from correspondent banks that typically mature within one to ninety days.  Peoples has available Federal Funds of $20 million from certain of its correspondent banks.  Interest on Federal funds purchased is set daily by the correspondent bank based on prevailing market rates.  The Federal Reserve Discount Window provides credit facilities to financial institutions, which are designed to ensure adequate liquidity by providing a source of short-term funds.  Discount Window advances are typically overnight and must be secured by collateral acceptable to the lending Federal Reserve Bank.

On December 19, 2012, Peoples obtained a $5 million revolving credit loan from an unaffiliated financial institution that matures on December 17, 2013. This loan bears interest at a fixed per annum rate equal to 3% plus the one-month LIBOR rate, to be reset monthly. This revolving credit loan is subject to the same convenants as detailed in Note 9 for the term loan. At December 31, 2012, this revolving credit loan had no outstanding principal balance.