In the second quarter of 2020, the Company began participating in the Federal Reserve Bank of Richmond’s PPP Liquidity Facility (“PPPLF”), which allows banks to pledge PPP loans as collateral in exchange for advances. The PPPLF advances are at 100% of the PPP loan value and term, have a fixed cost of 35 basis points, and receive favorable regulatory capital treatment. As of September 30, 2020, these FRB borrowings were comprised of six PPPLF advances, totaling $32.6 million with maturities ranging from 553 days to 560 days.

As of September 30, 2020 and December 31, 2019, the Bank had $25.0 and $45.0 million, respectively, of outstanding FHLB borrowings, consisting of three and four advances, respectively. Advances on the FHLB line are secured by a blanket lien on qualified one-to-four family real estate, commercial real estate, and multifamily residential loans. Immediately available credit as of September 30, 2020 was $252.4 million against a total line of credit of $308.4 million. As of September 30, 2020, the Bank had $31.0 million of letters of credit issued by the FHLB for the benefit of the Virginia Department of the Treasury as collateral for public deposits held by the Bank to comply with the Security of Public Deposits Act. The $31.0 million is not an outstanding borrowing as of September 30, 2020, but does reduce the available credit under the FHLB credit line.

The following table presents information regarding the FHLB advances outstanding as of September 30, 2020.

				Stated			Maturity
	Balance		Originated	Interest Rate			Date
Convertible	$	10,000	2/28/2020		0.56	%	2/28/2030
Fixed rate credit		5,000	9/8/2020		0.24	%	10/8/2020
Fixed rate credit		10,000	9/24/2020		0.22	%	10/23/2020
Total FHLB borrowings	$	25,000

On May 28, 2015, the Company issued $7.0 million of subordinated notes (the “2025 Notes”) with a maturity date of May 28, 2025 and that bear interest, payable on the first of March and September of each year, at a fixed interest rate of 6.50% per year. The Company has the right to redeem the 2025 Notes, in whole or in part, without premium or penalty, at any interest payment date after May 28, 2020, but in all cases in a principal amount with integral multiples of $1,000, plus interest accrued and unpaid through the date of redemption. The 2025 Notes are unsecured, subordinated obligations of the Company and rank junior in right of payment to the Company’s existing and future senior indebtedness. The 2025 Notes qualify as Tier 2 capital for regulatory reporting; however, the amount qualifying as capital is reduced by 20% annually beginning at the quarter end after the first redemption date, which occurred in the second quarter of 2020. The aggregate carrying value of the 2025 Notes, including capitalized, unamortized debt issuance costs, was $6.9 million at both September 30, 2020 and December 31, 2019. For the three and nine months ended September 30, 2020, the effective interest rate on the 2025 Notes was 6.82%. For the three and nine months ended September 30, 2019, the effective interest rate on the 2025 Notes was 6.82%.

On October 7, 2019, the Company issued $25.0 million in fixed-to-floating rate subordinated notes due 2029 (the “2029 Notes”). The 2029 Notes bear interest at 5.625% per year, beginning October 7, 2019 through October 14, 2024, payable semi-annually in arrears. From October 15, 2024 through October 14, 2029, or up to an early redemption date, the interest rate shall reset quarterly to an interest rate per year equal to the then current three-month Secured Overnight Funding Rate (“SOFR”) (as defined in the 2029 Notes) plus 433.5 basis points, payable quarterly in arrears. The 2029 Notes are unsecured, subordinated obligations of the Company and rank junior in right of payment to the Company’s existing and future senior indebtedness and rank in parity with the 2025 Notes. The 2029 Notes qualify as Tier 2 capital for regulatory reporting. Beginning on October 15, 2024 through maturity, the 2029 Notes may be redeemed, at the Company's option, on any scheduled interest payment date. The 2029 Notes will mature on October 15, 2029. The aggregate carrying value of the 2029 Notes, including capitalized, unamortized debt issuance costs, was $24.2 million and $24.1 million at September 30, 2020 and December 31, 2019, respectively. For both the three and nine months ended September 30, 2020, the effective interest rate on the 2029 Notes was 6.21%.

The aggregate carrying value of debt secured by shares of Company stock, issued and outstanding, held in the Company’s ESOP was $1.3 million and $1.5 million as of September 30, 2020 and December 31, 2019, respectively, and was included in other liabilities on the consolidated balance sheets. As of September 30, 2020, the debt was comprised of three fixed rate amortizing notes, which carry an interest rate of 3.25% with maturity dates ranging from March 1, 2025 to November 1, 2026, and two variable rate amortizing notes (interest rate of 5.50% as of September 30, 2020) with maturity dates ranging from June 14, 2024 to December 31, 2027. Shares that collateralize these loans are not allocated to ESOP participants’ accounts.