NOTE K – SHORT-TERM AND LONG-TERM DEBT

At December 31, 2019, the Company had no short-term debt and $57.4 million in long-term debt. Long-term debt consisted of $12.4 million in junior subordinated debentures and $45.0 million in Federal Home Loan Bank advances. The Federal Home Loan Bank advances are collateralized by $108.3 million of loans as of December 31, 2019.

At December 31, 2018, the Company had $7.0 million in short-term debt and $57.4 million in long-term debt. Short-term debt consisted of $7.0 million in Federal Home Loan Bank advances. Long-term debt consisted of $12.4 million in junior subordinated debentures and $45.0 million in Federal Home Loan Bank advances. The Federal Home Loan Bank advances are collateralized by $142.3 million of loans as of December 31, 2018.

At December 31, 2019, the Company had $45.0 million in advances from the Federal Home Loan Bank of Atlanta and no borrowings from the Federal Reserve Bank discount window. Advances consisted of the following at December 31, 2019:


	Amount		Rate		Maturity
	(dollars in thousands)
Advance type:
Fixed rate hybrid		20,000	2.53	%	2/2/2021
Fixed rate hybrid		10,000	2.89	%	4/12/2023
Fixed rate hybrid		5,000	2.94	%	5/30/2023
Fixed rate hybrid		10,000	2.97	%	6/28/2023

On September 20, 2004, $12.4 million of junior subordinated debentures were issued to New Century Statutory Trust I (“the Trust”) in exchange for the proceeds of trust preferred securities issued by the Trust. All of the Trust’s common equity is owned by the Company. The junior subordinated debentures are included in long-term debt and the Company’s equity interest in the Trust is included in other assets.

The Company pays interest on the junior subordinated debentures at an annual rate, reset quarterly, equal to 3 month LIBOR plus 2.15%. The debentures are redeemable on September 20, 2009 or afterwards in whole or in part, on any March 20, June 20, September 20 or December 20. Redemption is mandatory at September 20, 2034. The Company has fully and unconditionally guaranteed repayment of the trust-preferred securities. The Company’s obligation under the guarantee is unsecured and subordinate to senior and subordinated indebtedness of the Company. The trust preferred securities qualify as Tier 1 capital for regulatory capital purposes subject to certain limitations, none of which were applicable at December 31, 2019.

Lines of credit amounted to $238.9 million with various correspondent banks with $45.0 million outstanding and $173.9 million available as of December 31, 2019. Some of the lines of credit are secured and others unsecured with a variety of rates and terms.