Note 7—Short-Term Borrowings and Long-Term Debt

Short-term borrowings consist of securities sold under agreements to repurchase, federal funds purchased and other borrowings. At September 30, 2018, the balance of securities sold under agreements to repurchase was $8,624,000 compared to $10,295,000 at December 31, 2017. At September 30, 2018, there were no other short-term borrowings compared to $10,200,000 at December 31, 2017.

The following table presents a summary of long-term debt as of September 30, 2018 and December 31, 2017. PeoplesBank’s long-term debt obligations to the FHLBP are fixed rate instruments. Under terms of a blanket collateral agreement with the FHLBP, the obligations are secured by FHLBP stock and PeoplesBank qualifying loan receivables, principally real estate secured loans.



	September 30,		December 31,
(dollars in thousands)	2018		2017
PeoplesBank’s obligations:
Federal Home Loan Bank of Pittsburgh (FHLBP)
Due March 2018, 1.17%	$	0	$	10,000
Due June 2018, 1.87%		0		5,000
Due June 2018, 1.41%		0		10,000
Due November 2018, 1.62%		5,000		5,000
Due December 2018, 1.60%		15,000		15,000
Due April 2019, 1.64%		10,000		10,000
Due June 2019, 1.64%		5,000		5,000
Due June 2019, 2.10%		5,000		5,000
Due December 2019, 1.89%		15,000		15,000
Due March 2020, 1.86%		10,000		10,000
Due June 2020, 1.87%		15,000		15,000
Due June 2020, 2.70%		10,000		0
Due June 2021, 2.14%		15,000		15,000
Due June 2021, 2.81%		10,000		0
Due May 2022, 2.98%		10,000		0
Total FHLBP		125,000		120,000
Codorus Valley Bancorp, Inc. obligations:
Junior subordinated debt
Due 2034, 4.35%, floating rate based on 3 month
LIBOR plus 2.02%, callable quarterly		3,093		3,093
Due 2036, 3.88% floating rate based on 3 month
LIBOR plus 1.54%, callable quarterly		7,217		7,217
Total long-term debt	$	135,310	$	130,310

At September 30, 2018 and December 31, 2017, municipal deposit letters of credit issued by the FHLBP on behalf of PeoplesBank naming applicable municipalities as beneficiaries were $42,000,000. The letters of credit took the place of securities pledged to the municipalities for their deposits maintained at PeoplesBank.

In June 2006, Codorus Valley formed CVB Statutory Trust No. 2, a wholly-owned special purpose subsidiary whose sole purpose was to facilitate a pooled trust preferred debt issuance of $7,217,000. In November 2004, Codorus Valley formed CVB Statutory Trust No. 1 to facilitate a pooled trust preferred debt issuance of $3,093,000. The Corporation owns all of the common stock of these nonbank subsidiaries, and the debentures are the sole assets of the Trusts. The accounts of both Trusts are not consolidated for financial reporting purposes in accordance with FASB ASC 810. For regulatory capital purposes, all of the Corporation’s trust preferred securities qualified as Tier 1 capital for all reported periods. Trust preferred securities are subject to capital limitations under the FDIC’s risk-based capital guidelines. The Corporation used the net proceeds from these offerings to fund its operations.