Short-Term Borrowings

12 Months Ended

Dec. 31, 2022

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			Total
2022
Ending balance	$	100,138		$	400,000		$	—		$	500,138
Average balance	113,434			83,356			—			196,790
Highest month-end balance	286,442			400,000			—			500,138
Interest expense	$	274		$	2,387		$	—		$	2,661
Weighted-average interest rate:
End of year	0.40		%	4.36		%	—		%	3.57		%
During the year	0.24		%	2.86		%	—		%	1.35		%
2021
Ending balance	$	111,482		$	55,000		$	—		$	166,482
Average balance	70,674			30,289			—			100,963
Highest month-end balance	119,693			65,017			—			184,693
Interest expense	$	66		$	475		$	—		$	541
Weighted-average interest rate:
End of year	0.09		%	0.74		%	—		%	0.31		%
During the year	0.09		%	1.57		%	—		%	0.54		%
2020
Ending balance	$	53,261		$	20,000		$	—		$	73,261
Average balance	44,902			129,928			1,803			176,633
Highest month-end balance	53,261			235,989			64,000			279,773
Interest expense	$	77		$	2,489		$	5		$	2,571
Weighted-average interest rate:
End of year	0.06		%	1.78		%	—		%	0.53		%
During the year	0.17		%	1.92		%	0.25		%	1.46		%

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, 90-day advances used to fund interest rate swaps, other advances with an original maturity of one year or less, and the current portion of long-term advances due in less than one year. These advances, along with the long-term advances disclosed in "Note 10 Long-Term Borrowings," 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. Peoples had no reclassifications in 2022 and reclassified $15.0 million of FHLB advances from long-term borrowings to short-term borrowings in 2021, due to maturity dates of less than one year. Peoples' FHLB advances of $55.0 million and $70.0 million matured in 2022 and 2021, respectively.

Other short-term borrowings consisted primarily 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. 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. Federal Reserve Discount Window advances are typically overnight and must be secured by collateral acceptable to the FRB. At December 31, 2022, Peoples had available Federal Reserve Discount Window credit of $264.1 million.

As of April 3, 2019, Peoples entered into the U.S. Bank Loan Agreement with U.S. Bank National Association. The U.S. Bank Loan Agreement initially had an one-year term, which has subsequently been renewed, most recently as of March 31, 2022 for an additional year, and currently provides Peoples with a revolving line of credit in the maximum aggregate principal amount of $30.0 million that may be used: (i) for working capital purposes; (ii) to finance dividends or other distributions (other than stock dividends and stock splits) on or in respect of Peoples’ capital stock and redemptions, repurchases or other acquisitions of any of Peoples’ capital stock permitted under the U.S. Bank Loan Agreement and (iii) to finance acquisitions permitted under the U.S. Bank Loan Agreement.

The U.S. Bank Loan Agreement is unsecured, and contains certain negative and financial covenants. The financial covenants are applicable to Peoples and its subsidiaries, and are usual and customary for comparable transactions.

As of December 31, 2022, Peoples was in compliance with the applicable covenants imposed by the U.S. Bank Loan Agreement, as amended by the Fourth Amendment to the U.S. Bank Loan Agreement. The U.S. Bank Loan Agreement matures on March 31, 2023. Peoples is in the process of renewing this facility and expects that it will be renewed prior to its expiration.