Long-Term Borrowings

3 Months Ended

Mar. 31, 2020

The following table summarizes Peoples' long-term borrowings:


	March 31, 2020						December 31, 2019
(Dollars in thousands)	Balance		Weighted- Average Rate		Balance		Weighted- Average Rate
FHLB putable, non-amortizing, fixed-rate advances	$	115,000	1.57	%	$	65,000	2.18	%

FHLB amortizing, fixed-rate advances	$	10,300	1.74	%	$	10,672	1.74	%
Junior subordinated debt securities	$	7,491	5.21	%	$	7,451	6.55	%

Total long-term borrowings	$	132,791	1.78	%	$	83,123	2.51	%

Peoples continually evaluates its overall balance sheet position given the interest rate environment. During the first three months of 2020, Peoples entered into one additional $50.0 million FHLB putable, non-amortizing fixed-rate advance with an interest rate of 0.77%, which matures in 2030.

The FHLB putable, non-amortizing, fixed rate advances have maturities ranging from one to ten 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 the advance after an initial fixed rate period of three months or twelve 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 amortizing, fixed-rate FHLB advances have a fixed rate for the term of each advance, with remaining 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.

The aggregate minimum annual retirements of long-term borrowings in future periods are as follows:


(Dollars in thousands)	Balance		Weighted-Average Rate (a)
Nine months ending December 31, 2020	$	2,223	1.48	%
Year ending December 31, 2021	21,979		1.75	%
Year ending December 31, 2022	16,521		1.97	%
Year ending December 31, 2023	1,157		1.39	%
Year ending December 31, 2024	869		1.34	%
Thereafter	90,042		1.61	%
Total long-term borrowings	$	132,791	1.68	%

(a) The weighted-average rate includes the impact of accreting the current book value of the junior subordinated debt securities to face value over the period. The weighted-average rates for the FHLB advances are 1.68% in the nine months ending December 31, 2020, 1.78% in 2021, 2.00% in 2022, 1.73% in 2023, 1.74% in 2024, and 1.43% thereafter.