8. Long-Term Debt and FHLB Stock

FHLB Borrowings and Stock

The Bank is a member of the FHLB. At June 30, 2020 and December 31, 2019, the Bank had access to a preapproved secured line of credit with the FHLB of $564,068 and $486,906, respectively. Borrowings under this line require collateralization through the pledge of specific loans and securities. At June 30, 2020 and December 31, 2019, the Bank had pledged assets of $180,161 and $168,230, respectively. At June 30, 2020, the Bank also had structured borrowings with the FHLB in the amount of $59,016. The outstanding principal amounts and the related terms and rates at June 30, 2020 were as follows:


Term	Principal		Maturity	Rate		Due in one year		Long term
1 year bullet		10,000	February 1, 2021	0.80	%		10,000		—
2 year amortizing		5,063	May 17, 2021	2.53	%		5,063		—
2 year bullet		10,000	May 17, 2021	2.46	%		10,000		—
3 year amortizing		3,431	May 17, 2021	2.92	%		3,431		—
3 year amortizing		6,749	May 16, 2022	2.49	%		3,333		3,416
3 year bullet		10,000	May 16, 2022	2.44	%		—		10,000
3 year amortizing		13,773	February 28, 2023	1.32	%		4,951		8,822
Total	$	59,016	Weighted Average Rate	1.95	%	$	36,778	$	22,238

The Bank is required to maintain an investment in capital stock of the FHLB, as collateral, in an amount equal to a certain percentage of its outstanding debt. FHLB stock is considered restricted stock and is carried at cost. The Bank evaluates for impairment based on the ultimate recovery ability of the cost. No impairment was recognized at either June 30, 2020 or December 31, 2019.

Subordinated Debt

As part of the reorganization completed on January 16, 2019, the Company assumed both the common securities and related obligations of RSB Capital Trust I (“Trust”). The Trust, which has no independent assets or operations, was formed in 2005 for the sole purpose of issuing trust preferred securities and investing the proceeds thereof in an equivalent amount of junior subordinated debentures. The proceeds from the issuance of the trust preferred securities were down-streamed to the Bank and are currently considered Tier 1 capital for purposes of determining the Bank’s capital ratios. The trust securities also bear interest at 3-month LIBOR plus 2.00%. The duration of the Trust is 30 years.

The subordinated debt securities of $5,155 are unsecured obligations of the Company and are subordinate and junior in right of payment to all present and future senior indebtedness of the Company. The Company has entered into a guarantee, which together with its obligations under the subordinated debt securities and the declaration of trust governing the Trust, including its obligations to pay costs, expenses, debts and liabilities, provides a full and unconditional guarantee of amounts on the capital securities. The subordinated debentures, which bear interest at 3-month LIBOR plus 2.00% (2.30% at June 30, 2020 and 3.91% at December 31, 2019) mature on May 23, 2035.

Other Borrowings

The Bank was a participant in the Federal Reserve’s Paycheck Protection Program Lending Facility which allowed us to present the PPP loans we originated as collateral for 100% principal funding at the Federal Reserve’s discount window. The term of the borrowings under the lending facility mirrored the actual maturity of the underlying collateral and had a fixed interest rate of 0.35%. During the second quarter, we received $70,100 in funding and at June 30, 2020, had paid back all but $12,100, which was repaid on July 2, 2020.

On December 31, 2018, there was an outstanding advance on an unsecured credit line with Atlantic Community Bankers Bank of $5,000 to Rhinebeck Bancorp, MHC which was paid in full on January 16, 2019 at the close of the Company’s offering.

The Bank also has an unsecured, uncommitted $10,000 line of credit with Zions Bank. There were no advances outstanding under this line of credit at either June 30, 2020 or December 31, 2019.