Short-Term Borrowings

12 Months Ended

Dec. 31, 2023

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
2023
Ending balance	$	99,121		$	369,000		$	133,000		$	601,121
Average balance	102,530			353,532			7,495			463,557
Highest month-end balance	125,937			484,000			133,000			585,439
Interest expense	$	1,349		$	18,058		$	315		$	19,722
Weighted-average interest rate:
End of year	1.54		%	5.41		%	4.85		%	4.65		%
During the year	1.32		%	5.11		%	4.93		%	4.25		%
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		%

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’ FHLB advances of $60.0 million and $55.0 million matured in 2023 and 2022, respectively.

Other short-term borrowings consisted primarily of federal funds purchased and advances from the Federal Reserve Discount Window, as well as a Bank Term Funding Program (“BTFP”) loan. Federal funds purchased are short-term borrowings from correspondent banks that typically mature within one to 90 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, 2023, Peoples had available Federal Reserve Discount Window credit of $320.7 million. Peoples also has a $133.0 million loan under the BTFP. Loans with the BTFP have a term of up to one year. As of the date of Peoples’ borrowing, the interest rate for term advances was the one-year overnight index swap rate plus 10 basis points. On January 24, 2024, the Federal Reserve Board announced that it will cease making new loans under the BTFP on March 11, 2024 and that the rate on a borrowing may not be lower than the Interest on Reserve Balances (“IORB”) rate in effect on the day the advance is made; the rate will be fixed for the term of the advance on the day the advance is made.

As of April 3, 2019, Peoples entered into a loan agreement (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, 2023 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, 2023, Peoples was in compliance with the applicable covenants imposed by the U.S. Bank Loan Agreement, as amended by the Fifth Amendment to the U.S. Bank Loan Agreement. The U.S. Bank Loan Agreement matures on March 31, 2024. Peoples is in the process of renewing this facility and expects that it will be renewed prior to its expiration.