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
2016
Ending balance	$	74,607		$	231,000		$	—
Average balance	72,886			86,260			23
Highest month-end balance	81,353			231,000			—
Interest expense	123			384			—
Weighted-average interest rate:
End of year	0.17		%	0.64		%	—		%
During the year	0.17		%	0.44		%	1.11		%
2015
Ending balance	$	84,386		$	76,000		$	—
Average balance	83,574			16,863			—
Highest month-end balance	92,711			76,000			—
Interest expense	140			42			—
Weighted-average interest rate:
End of year	0.17		%	0.35		%	—		%
During the year	0.17		%	0.25		%	—		%
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		%

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 had available federal funds of $5 million from certain of its correspondent banks at December 31, 2016. 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.

Peoples had a $15 million revolving credit loan which was to bear interest at a fixed per annum rate equal to 3% plus the one-month LIBOR rate, to be reset monthly. This revolving credit loan was subject to the same covenants as detailed in Note 9 for the term loan. At December 31, 2015, this revolving credit loan had no outstanding principal balance and Peoples terminated the revolving credit loan on March 2, 2016. This revolving credit loan was replaced on March 4, 2016, when Peoples secured a revolving line of credit in the maximum aggregate principal amount of $15 million. Additional information regarding the revolving line of credit can be found in Note 9.