8. Long-Term Debt and FHLB Stock

FHLB Borrowings and Stock

The Bank is a member of the FHLB. At September 30, 2020 and December 31, 2019, the Bank had access to a preapproved secured line of credit with the FHLB of $556,202 and $486,906, respectively. Borrowings under this line require collateralization through the pledge of specific loans and securities. At September 30, 2020 and

December 31, 2019, the Bank had pledged assets of $176,487 and $168,230, respectively. At September 30, 2020, the Bank also had structured borrowings with the FHLB in the amount of $54,857.

The outstanding principal amounts and the related terms and rates at September 30, 2020 were as follows:


Term	Principal		Maturity	Rate		Due in one year		Long term
1 year bullet		10,000	March 26, 2021	0.80	%		10,000		—
2 year amortizing		3,809	May 17, 2021	2.53	%		3,809		—
2 year bullet		10,000	May 17, 2021	2.46	%		10,000		—
3 year amortizing		2,583	May 17, 2021	2.92	%		2,583		—
3 year amortizing		5,924	May 16, 2022	2.49	%		3,353		2,571
3 year bullet		10,000	May 16, 2022	2.44	%		—		10,000
3 year amortizing		12,541	February 28, 2023	1.32	%		4,967		7,574
Total	$	54,857	Weighted Average Rate	1.92	%	$	34,712	$	20,145

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 September 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 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% (2.26% at September 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 PPP 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 which was repaid in full on July 2, 2020.

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 September 30, 2020 or December 31, 2019.