OTHER BORROWINGS

9 Months Ended

Sep. 30, 2017

OTHER BORROWINGS [Abstract]

OTHER BORROWINGS

7. OTHER BORROWINGS

Federal Home Loan Bank Advances – The Company through the bank has a blanket lien credit line with the FHLB.  FHLB advances are collateralized in the aggregate by CWB’s eligible loans and securities.  Total FHLB advances were $52.0 million and $25.0 million at September 30, 2017 and December 31, 2016, respectively, borrowed at fixed rates.  The Company also had $125.0 million of letters of credit with FHLB at September 30, 2017 to secure public funds.  At September 30, 2017, CWB had pledged to the FHLB, $38.0 million of securities and $212.6 million of loans.  At September 30, 2017, CWB had $61.2 million available for additional borrowing.  At December 31, 2016, CWB had pledged to the FHLB, $31.7 million of securities and $161.3 million of loans.  At December 31, 2016, CWB had $56.8 million available for additional borrowing.  Total FHLB interest expense for the three months ended September 30, 2017 and 2016 was $77,000 and $7,000, respectively.  Total FHLB interest expense for the nine months ended September 30, 2017 and 2016 was $175,000 and $21,000, respectively.

Federal Reserve Bank – The Company has established a credit line with the FRB.  Advances are collateralized in the aggregate by eligible loans for up to 28 days.  There were no outstanding FRB advances as of September 30, 2017 and December 31, 2016.  Available borrowing capacity was $101.6 million and $95.1 million as of September 30, 2017 and December 31, 2016, respectively.

Federal Funds Purchased Lines– The Company has federal funds borrowing lines at correspondent banks totaling $20.0 million.    There was no amount outstanding as of September 30, 2017 and December 31, 2016.

Line of Credit - In July of 2017, the Company entered into a one-year revolving line of credit agreement for up to $15.0 million.  The Company must maintain a compensating deposit with the lender of 25% of the outstanding principal balance in a non-interest-bearing deposit account which was $1.0 million at September 30, 2017.  In addition, the Company must maintain a minimum debt service coverage ratio of 1.65, a minimum Tier 1 leverage ratio of 7.0% and a minimum total risked based capital ratio of 10.0%.  At September 30, 2017, the line of credit balance was $3.8 million at a rate of 4.98%.