NOTE 8 – FHLB ADVANCES AND OTHER DEBT

FHLB advances and other debt were as follows:


	Weighted
	Average Rate	June 30, 2020		December 31, 2019
FHLB fixed rate advances:
Maturities:
2020	2.15%	$	3,500	$	4,500
2021	1.63%		7,500		4,000
2022	1.16%		10,000		1,500
2023	0.92%		3,500		-
2024	1.90%		6,500		6,500
Total FHLB fixed rate advances			31,000		16,500

Fixed rate other debt:
FRB PPPLF advances	0.35%		125,056		-

Variable rate other debt:
Holding Company credit facility	4.00%		9,750		5,000
Warehouse facility	-		-		7,517
Total variable rate other debt			9,750		12,517
Total		$	165,806	$	29,017

Each FHLB advance is payable at its maturity date, with a prepayment penalty for fixed-rate advances.

The Holding Company had an existing credit facility with a third-party bank which was modified to a $10,000 revolving line-of-credit in December 2018. In December 2019, the $5,000 outstanding balance on the existing line-of-credit was converted to a $5,000 term loan with an additional $10,000 revolving line-of-credit. The new term loan requires quarterly principal payments of $125 plus accrued interest. Any remaining principal is due and payable on the maturity date, which is December 23, 2022. Loans under the credit facility bear interest at a rate equal to the Prime Rate plus 0.75%. The purpose of the credit facility is to provide an additional source of liquidity for the Holding Company and to provide funds for the Holding Company to downstream as additional capital to CFBank to support growth. As of June 30, 2020, the Company had an outstanding balance of $4,750 on the term loan and a $5,000 outstanding balance on the revolving line-of-credit. At December 31, 2019, the term loan had an outstanding balance of $5,000 and no outstanding balance on the line of credit facility.

At June 30, 2020, CFBank had $8,000 of availability in an unused line of credit at a commercial bank. There were no outstanding borrowings on this line at June 30, 2020 and December 31, 2019. During the third quarter of 2019, CFBank added an additional $15,000 line of credit at another commercial bank. There was no outstanding borrowings on this line of credit at June 30, 2020 and December 31, 2019. Interest on any principal amounts outstanding from time to time under these lines accrues daily at a variable rate based on the commercial bank’s cost of funds and current market returns.

During the fourth quarter of 2019, CFBank entered into a $25,000 warehouse facility with a commercial bank. The warehouse facility is used to periodically fund loans held for sale from the close (funding) date until they are sold in the secondary market. Borrowings on the facility bear interest at the greater of the 30-day LIBOR plus 2.00% or 4.00% and are secured by the specific loans that were funded. This warehouse facility had an no outstanding balance at June 30, 2020 and an outstanding balance of $7,517 at December 31, 2019.

During the second quarter of 2020, CFBank entered into an additional $75,000 warehouse facility with a commercial bank. The warehouse facility is used to periodically fund loans held for sale from the close (funding) date until they are sold in the secondary market. Borrowings on the facility bear interest at the greater of the 30-day LIBOR plus 1.75% or 3.50% and are secured by the specific loans that were funded. This warehouse facility had no outstanding balance at June 30, 2020 and December 31, 2019.

To support the effectiveness of the PPP loans, the Federal Reserve introduced the PPPLF to extend credit to financial institutions that made PPP loans, with the related PPP loans used as collateral on the borrowings. The PPPLF borrowings have a fixed interest rate of 0.35% and a maturity equal to the maturity date of the related PPP loans, with the PPP loans maturing two years from the origination date of the PPP loan. At June 30, 2020, the Company’s PPP loans and related PPPLF funding had a weighted average life of approximately two years. At June 30, 2020, the principal balance of PPPLF advances outstanding was $125,056.