Federal Home Loan Bank Advances

3 Months Ended

Mar. 31, 2020

Federal Home Loan Banks [Abstract]

Federal Home Loan Bank Advances

NOTE 7 – FEDERAL HOME LOAN BANK ADVANCES

Federal Home Loan Bank advances consist of the following:

	March 31, 2020					December 31, 2019
	Rate			Amount		Rate			Amount
	(dollars in thousands)
Fixed rate, fixed term advances		1.41% - 1.62	%	$	20,000		1.41	%	$	7,000
Putable advance, maturing Oct 2029 first put option date Nov 2020		1.03	%		10,000		1.03	%		10,000
Putable advance, maturing Feb 2030 first put option date Feb 2023		0.98	%		5,000		—			—
Putable advance, maturing Mar 2030 first put option date Mar 2025		0.89	%		10,000		—			—
Advance structured note, payments due monthly, maturing Feb 2030		7.47	%		614		7.47	%		623
Advance structured note, payments due monthly, maturing April 2030		1.05	%		10,000		—			—
Total				$	55,614				$	17,623

The scheduled maturities of Federal Home Loan Bank advances are presented below:

	March 31, 2020
	Weighted Average Rate			Amount
	(dollars in thousands)
2020		1.33	%	$	664
2021		1.40	%		8,002
2022		1.34	%		7,516
2023		1.36	%		7,530
2024		1.37	%		1,044
Thereafter		1.12	%		30,858
Total				$	55,614

Actual maturities may differ from scheduled maturities due to call options on various Federal Home Loan Bank advances.

The Company maintains a master contract agreement with the Federal Home Loan Bank, which provides for borrowing up to the lesser of 22.22 times the value of the Federal Home Loan Bank stock owned, a determined percentage of the book value of the Company’s qualifying real estate loans, or a determined percentage of the Company’s assets. The Federal Home Loan Bank provides both fixed and floating rate advances. Floating rates are tied to short-term market rates of interest such as the London InterBank Offered Rate, federal funds or Treasury bill rates. Federal Home Loan Bank advances are subject to a prepayment penalty if they are repaid prior to maturity. The Company has pledged approximately $120,114 and $125,483 of qualifying loans as collateral for Federal Home Loan Bank advances as of March 31, 2020 and December 31, 2019, respectively. Federal Home Loan Bank advances are also secured by approximately $2,503 and $913 of Federal Home Loan Bank stock held by the Company as of March 31, 2020 and December 31, 2019, respectively. The Company’s available and unused portion of this borrowing agreement totaled $63,643 and $107,019 as of March 31, 2020 and December 31, 2019, respectively. Additional borrowing would require additional stock purchase.