NOTE 9 – FEDERAL HOME LOAN BANK ADVANCES & OTHER BORROWINGS

Advances from the Federal Home Loan Bank (FHLB) at December 31, 2019 and 2018 are summarized as follows:


	December 31,
(Dollars in thousands)	2019		2018
Convertible advance with Bermudan option maturing August 6, 2029; fixed rate of 0.85%	$	20,000	$	—
Convertible advances with Bermudan option maturing November 7, 2029; fixed rate of 0.68%		30,000		—
Convertible advance with Bermudan option maturing December 5, 2029; fixed rate of 0.75%		10,000		—
Total FHLB advances	$	60,000	$	—

At December 31, 2019 and 2018, the Company had a line of credit with the FHLB, set as a percentage of total assets, with maximum borrowing capacity of $494.3 million and $433.0 million at December 31, 2019 and 2018, respectively. The available borrowing amounts are collateralized by the Company’s FHLB stock and pledged commercial and residential real estate loans, which totaled $716.9 million and $723.2 million at December 31, 2019 and 2018, respectively.

As of December 31, 2019 and 2018, the Company had unsecured federal funds lines available with various financial institutions of approximately $47.5 million. These lines have various terms, rates and maturities. There were no advances outstanding on these lines at December 31, 2019 or 2018.

As of December 31, 2019 and 2018, the Company had Federal Reserve Discount Window funds available of approximately $10.0 million, with no amounts outstanding at either date. The funds are collateralized by a pool of commercial real estate and commercial and industrial loans totaling $27.3 million and $14.0 million as of December 31, 2019 and 2018, respectively.

The Company sells the guaranteed portion of certain SBA loans it originates and continues to service the sold portion of the loan. The Company sometimes retains an interest only strip or servicing fee that is considered to be more than customary market rates. An interest rate strip can result from a transaction when the market rate of the transaction differs from the stated rate on the portion of the loan sold.

The sold portion of SBA loans that satisfies at least one of the above provisions are considered secured borrowings and are included in other borrowings. Secured borrowings at December 31, 2019 and 2018 were $3.1 million and $4.3 million, respectively.