Long-Term Borrowings

12 Months Ended

Dec. 31, 2019

Long-term borrowings consisted of the following at December 31:


	2019						2018
(Dollars in thousands)	Balance		Weighted- Average Rate		Balance		Weighted- Average Rate
FHLB putable, non-amortizing, fixed rate advances	$	65,000	2.18	%	$	85,000	2.05	%
FHLB amortizing, fixed rate advances	10,672		1.74	%	17,361		2.09	%

Junior subordinated debt securities	7,451		6.55	%	7,283		7.83	%

Long-term borrowings	$	83,123	2.51	%	$	109,644	2.44	%

The FHLB putable, non-amortizing, fixed rate advances have maturities ranging from one to seven years that may be repaid prior to maturity, subject to the payment of termination fees. The FHLB has the option, at its sole discretion, to terminate each advance after the initial fixed rate period of three months, requiring full repayment of the advance by Peoples, prior to the stated maturity. If an advance is terminated prior to maturity, the FHLB will offer Peoples replacement funding at the then-prevailing rate on an advance product then offered by the FHLB, subject to normal FHLB credit and collateral requirements. These advances require monthly interest payments, with no repayment of principal until the earlier of either an option to terminate being exercised by the FHLB or the stated maturity.

The FHLB amortizing, fixed rate advances have a fixed rate for the term of each advance, with maturities ranging from six to eleven years. These advances require monthly principal and interest payments, with some having a constant prepayment rate requiring an additional principal payment annually. These advances are not eligible for optional prepayment prior to maturity. Long-term FHLB advances are collateralized by assets owned by Peoples.

Peoples continually evaluates its overall balance sheet position given the interest rate environment. During 2019, Peoples borrowed no additional long-term advances from the FHLB. At December 31, 2019, outstanding long-term FHLB non-amortizing advances, which have interest rates ranging from 1.40% to 3.20%, mature between 2021 and 2027. During 2019, $20.0 million of long-term FHLB non-amortizing advances and $3.2 million long-term FHLB amortizing advances were reclassified to short-term borrowings as the time to maturity became less than one year.

During 2018, Peoples borrowed no additional long-term advances from the FHLB. At December 31, 2018, then outstanding long-term FHLB non-amortizing advances, which had interest rates ranging from 1.26% to 2.17%, were to mature between 2020 and 2027. During 2018, $30.0 million of long-term FHLB non-amortizing advances were reclassified to short-term borrowings as the time to maturity became less than one year.

Effective April 3, 2019, Peoples terminated the Credit Agreement, dated as of March 4, 2016, between Peoples, as Borrower, and Raymond James Bank, N.A., as Lender (the "RJB Credit Agreement"), which represented a revolving line of credit in the maximum aggregate principal amount of $15.0 million. Peoples replaced the RJB Credit Agreement with a short-term revolving line of credit with U.S. Bank National Association. For further information on the U.S. Bank Loan Agreement, refer to "Note 8 Short-Term Borrowings."

On March 6, 2015, Peoples completed its acquisition of NB&T Financial Group, Inc. ("NB&T"), which included the assumption of Fixed/Floating Rate Junior Subordinated Debt Securities due in 2037 (the "junior subordinated debt securities") at an acquisition-date fair value of $6.6 million, held in a wholly-owned statutory trust whose common securities were wholly-owned by NB&T. The sole assets of the statutory trust are the junior subordinated debt securities and related payments. The junior subordinated debt securities and the back-up obligations, in the aggregate, constitute a full and unconditional guarantee of the obligations of the statutory trust under the Capital Securities held by third-party investors. Distributions on the Capital Securities are payable at the annual rate of 1.50% over the 3-month LIBOR rate. Distributions on the Capital Securities are included in interest expense in the Consolidated Financial Statements. These securities are considered tier I capital (with certain limitations applicable) under current regulatory guidelines. The junior subordinated debt securities are subject to mandatory redemption, in whole or in part, upon repayment of the Capital Securities at maturity or their earlier redemption at the liquidation amount. Subject to prior approval of the FRB, the Capital Securities are redeemable prior to the maturity date of September 6, 2037, and are redeemable at par. Since September 6, 2012, the Capital Securities have been redeemable at par, subject to such approval. Distributions on the Capital Securities can be deferred from time to time for a period not to exceed 20 consecutive quarterly periods.

At December 31, 2019, the aggregate minimum annual retirements of long-term borrowings in future periods were as follows:


(Dollars in thousands)	Balance		Weighted-Average Rate (a)
2020	$	2,555	1.42	%
2021	21,979		1.75	%
2022	16,521		1.97	%
2023	1,157		1.27	%
2024	869		1.19	%
Thereafter	40,042		2.86	%
Total long-term borrowings	$	83,123	2.31	%