Short-term borrowings

12 Months Ended

Dec. 31, 2011

9. Short-term borrowings:

Securities sold under agreements to repurchase and Federal Home Loan Bank (“FHLB”) advances generally represent overnight or less than 30-day borrowings. Short-term borrowings consisted of the following at December 31, 2011 and 2010:

	At and for the year ended December 31, 2011
	Ending Balance		Average Balance		Maximum Month-End Balance		Weighted Average Rate for the Year			Weighted Average Rate at End of the Year
Repurchase agreements	$	38,316	$	37,210	$	42,551		0.82	%		0.80	%
FHLB advances		5,475		790		5,475		0.37	%		0.05	%
	$	43,791	$	38,000	$	48,026		0.81	%		0.71	%

	At and for the year ended December 31, 2010
	Ending Balance		Average Balance		Maximum Month-End Balance		Weighted Average Rate for the Year			Weighted Average Rate at End of the Year
Repurchase agreements	$	37,912	$	32,077	$	41,678		1.22	%		1.02	%
FHLB advances				34				0.73	%
U.S. Treasury tax and loan		812		503		1,018
	$	38,724	$	32,614	$	42,696		1.20	%		1.00	%

Peoples Bank has an agreement with the FHLB which allows for borrowings up to a percentage of qualifying collateral assets. At December 31, 2011, Peoples Bank had a maximum borrowing capacity for short- and long-term advances, with the FHLB, of approximately $159,299 of which $24,402 was outstanding in short- and long-term borrowings. Advances with the FHLB are secured under terms of a blanket collateral agreement by a pledge of FHLB stock and certain other qualifying collateral, such as investments and mortgage-backed securities and mortgage loans. Interest accrues daily on the FHLB advances based on rates of the FHLB discount notes. This rate resets each day.

Securities sold under repurchase agreements are retained under Peoples Bank's control at its safekeeping agent. The Bank may be required to provide additional collateral based on the fair value of the underlying securities.

- Definition

The entire disclosure for short-term debt.

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