Federal Home Loan Bank Advances

9 Months Ended

Sep. 30, 2020

NOTE 7 – FEDERAL HOME LOAN BANK ADVANCES

Federal Home Loan Bank advances consist of the following:


	September 30, 2020					December 31, 2019
	Rate			Amount		Rate			Amount
	(dollars in thousands)
Fixed rate, fixed term advances		1.41% - 1.77	%	$	24,000		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	%		594		7.47	%		623
Advance structured note, payments due monthly, maturing April 2030		1.05	%		9,604		—			—
Advance structured note, payments due monthly, maturing May 2030		1.19	%		9,686		—			—

Total				$	68,884				$	17,623

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


	September 30, 2020
	Weighted Average Rate			Amount
	(dollars in thousands)
2020		1.25	%	$	485
2021		0.95	%		12,956
2022		1.54	%		8,481
2023		1.54	%		8,507
2024		1.28	%		2,032
Thereafter		1.08	%		36,423

Total				$	68,884

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 $146.2 million and $125.5 million of qualifying loans as collateral for Federal Home Loan Bank advances as of September 30, 2020 and December 31, 2019, respectively. Federal Home Loan Bank advances are also secured by approximately $3.0 million and $913,000 of Federal Home Loan Bank stock held by the Company as of September 30, 2020 and December 31, 2019, respectively. The Company’s available and unused portion of this borrowing agreement totaled $76.3 million and $107.0 million as of September 30, 2020 and December 31, 2019, respectively. Additional borrowing would require additional purchase of FHLB stock.