NOTE 7 - OTHER BORROWINGS

There were no outstanding borrowings with the Federal Reserve Bank (the “FRB”) at March 31, 2014 or at December 31, 2013.

Assets pledged as collateral with the FRB were as follows:



	March 31, 2014		December 31, 2013

Commercial Loans		20,020		19,591
Commercial Real Estate Loans		30,183		28,721
Total	$	50,203	$	48,312

Based on the collateral pledged, CFBank was eligible to borrow up to $31,494 from the FRB at March 31, 2014.

CFBank had a $1.0 million line of credit with a commercial bank at both March 31, 2014 and December 31, 2013. There were no outstanding borrowings on this line of credit at March 31, 2014 or December 31, 2013. If CFBank were to borrow on this line of credit, interest would accrue daily at a variable rate based on the commercial bank’s cost of funds and current market returns.

During the course of 2013, CFBank entered into certain loan participations that, according to the structure of the transactions, did not qualify for sales accounting treatment and are therefore accounted for as secured borrowings. At December 31, 2013, there were five loan participation agreements classified as secured borrowings totaling approximately $6,500. The maturities of the secured borrowings range from March 2016 through January 2024, with a weighted average rate of approximately 4.10%. These loans provided CFBank with the ability to repurchase the loan at their discretion. During March 2014, management amended the aforementioned loan participation agreements to remove the language that disqualified the loan participations from sales accounting treatment and CFBank entered into amended loan participation agreements with the participating institutions with respect to the five loans that were classified as secured borrowings at December 31, 2013. There were no secured borrowing transactions as of March 31, 2014. CFBank retains an ownership interest in participated loans and provides customary servicing to the third-parties which are typically other community banks.