Short-Term Borrowings

12 Months Ended

Dec. 31, 2014

Short-term Debt [Abstract]

Short-term Borrowings Disclosure

Short-Term Borrowings

Peoples utilizes various short-term borrowings as sources of funds, which are summarized as follows at December 31:

(Dollars in thousands)	Retail Repurchase Agreements			FHLB Advances			Other Short-Term Borrowings
2014
Ending balance	$	73,277		$	15,000		$	—
Average balance	59,324			36,678			38
Highest month-end balance	76,459			108,000			—
Interest expense	99			47			—
Weighted-average interest rate:
End of year	0.17		%	0.14		%	—		%
During the year	0.17		%	0.13		%	0.75		%
2013
Ending balance	$	42,590		$	71,000		$	—
Average balance	37,077			44,127			90
Highest month-end balance	46,850			92,500			—
Interest expense	58			55			1
Weighted-average interest rate:
End of year	0.16		%	0.14		%	—		%
During the year	0.16		%	0.12		%	0.74		%
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		%

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, and on August 4, 2014, the revolving credit loan amount was increased to $10 million. 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 covenants as detailed in Note 9 for the term loan. At December 31, 2014 and 2013, this revolving credit loan had no outstanding principal balance.