First Tennessee Bank and HF Financial Corp. Revolving Line of Credit and Fed Funds Accommodation Increase Letter (June 1, 2005)
This letter agreement between First Tennessee Bank National Association and HF Financial Corp. increases HF Financial's revolving line of credit to $6 million, allowing the company to use funds for subsidiary growth, acquisitions, and liquidity needs. The line of credit matures on May 29, 2006, with interest at a variable rate and possible extension upon review. The agreement also increases Home Federal Bank’s Fed Funds accommodation to $15 million, effective June 30, 2005, subject to cancellation and certain borrowing conditions.
Exhibit 10.17
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| CAPITAL MARKETS |
June 1, 2005
Darrel Posegate
Executive Vice President/Chief Financial Officer
HF Financial Corp.
P.O. Box 5000
Sioux Falls, SD 57117 – 5000
Dear Darrel:
I am pleased to announce that First Tennessee Bank National Association has approved a Three Million Dollar ($3,000,000.00) increase HF Financial Corporation’s existing Revolving Line of Credit with First Tennessee Bank. The new Revolving Line of Credit will total Six Million Dollars ($6,000,000.00). HFC may use advances under this line of credit for: i) capital infusion to its subsidiaries to support growth and/or bank or branch acquisitions, ii) acquisition of bank holding companies, and iii) other liquidity needs. At or near maturity, FTB will review the line of credit for the possibility of another one-year extension.
The interest on the outstanding balance will be payable quarterly at a variable rate per annum on the outstanding balance. The variable rate of interest shall be ¼% discount to First Tennessee’s Base Rate, which is currently 6.00%. Thus, your borrowing rate today would equal 5.75%. The maturity date of this commitment is May 29, 2006.
This indebtedness shall be governed by the original covenants and conditions set forth in the commitment letter dated June 3, 2003.
Additionally, this letter confirms the renewal and increase of Home Federal Bank’s Fed Funds accommodation. First Tennessee Bank has increased this accommodation to Fifteen Million Dollars ($15,000,000.00). This increase will go into effect on June 30, 2005 and will cover the period from June 30, 2005 to June 30, 2006 and is subject to the following:
• In accordance with First Tennessee Policy, this is not a confirmed line and is subject to cancellation at any time. Reasons for cancellation include, but are not limited to changes in the financial condition, in the senior management or the liquidity position of Home Federal Bank or the funding mix of First Tennessee Bank.
FTN FINANCIAL GROUP
845 Crossover Lane, Suite 150
Memphis, Tennessee 38117
901 ###-###-#### / 800 ###-###-####
www.ftnfinancial.com
FTN Financial Group is a division of First Tennessee Bank National Association. FTN Financial Group, through First Tennessee Bank or its affiliates, offers investment products and services.
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• Requests for borrowing over the pre-approved limit will be considered on a case-to-case basis. Fed Funds purchases need not be renewed on a daily basis. Continuous borrowings in excess of fourteen (14) days must be secured in full by U. S. Government or Agency Securities.
• Requests to borrow Fed Funds can be made by calling the Financial Institutions Division at ###-###-####. The cutoff time for borrowing Fed Funds is 3:00 P.M. (CST).
Darrel, it is a pleasure of First Tennessee Bank to provide these commitments/accommodations to your institution and look forward to servicing the financial needs of the company in the future. Please do not hesitate to call if you have any questions or concerns.
Sincerely,
| /s/ David House |
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David House
Vice President
Correspondent Services
