NOTE 8 – FHLB ADVANCES AND OTHER DEBT

FHLB advances and other debt were as follows:


	Weighted
	Average Rate	March 31, 2021		December 31, 2020
FHLB fixed rate advances:
Maturities:
2021	2.32%	$	4,000	$	7,500
2022	1.16%		10,000		10,000
2023	0.92%		3,500		3,500
2024	1.90%		6,500		6,500
Total FHLB fixed rate advances			24,000		27,500

Fixed rate other debt:
FRB PPPLF advances	0.35%		90,573		107,413

Variable rate other debt:
Holding Company credit facility	4.00%		9,375		9,500
Warehouse facility	2.90%		13,946		70,013
Total variable rate other debt			23,321		79,513
Total		$	137,894	$	214,426

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

The Holding Company has a term loan in the original principal amount of $5,000 with an additional $10,000 revolving line-of-credit with a third-party bank. The 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 March 31, 2021, the Company had an outstanding balance of $4,375 on the term loan and a $5,000 outstanding balance on the revolving line-of-credit. At December 31, 2020, the Company had an outstanding balance of $4,500 on the term loan and a $5,000 outstanding balance on the revolving line-of-credit facility.

At March 31, 2021, CFBank had availability in unused lines of credit at two commercial banks in amounts of $50,000 and $15,000. There were no outstanding borrowings on either line at March 31, 2021 and December 31, 2020. 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 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 (a) the 30-day LIBOR plus 2.00% or (b) 4.00% and are secured by the specific loans that were funded. This warehouse facility had no outstanding balance at March 31, 2021 and December 31, 2020.

During 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 (a) the 30-day LIBOR plus 2.35% or (b) 2.90% and are secured by the specific loans that were funded. This warehouse facility had an outstanding balance of $13,946 at March 31, 2021, and $70,013 at December 31, 2020.

The CARES Act amended the loan program of the Small Business Administration, in which CFBank participates, to create a guaranteed, unsecured loan program, the Paycheck Protection Program (the “PPP”), to fund operational costs of eligible businesses, organizations and self-employed persons during COVID-19. During 2020, CFBank processed 558 PPP loans totaling approximately $126 million. To support the effectiveness of the PPP, the Federal Reserve Board (the “FRB”) introduced the Paycheck Protection Program Lending Facility (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. If a PPP loan pays off early, the corresponding PPPLF borrowing must be paid off as well. At March 31, 2021, the Company’s PPP loans and related PPPLF funding had a weighted average life of approximately 1.1 years. At March 31, 2021, the principal balance of PPPLF advances outstanding was $90,573. At December 31, 2020, the Company’s PPP loans and related PPPLF funding had a weighted average life of approximately 1.2 years. At December 31, 2020, the principal balance of PPPLF advances outstanding was $107,413.