Note 4. Credit Facilities

The Bank owns capital stock of the Federal Home Loan Bank of Atlanta (FHLB) as a condition for a $192.4 million convertible advance credit facility from the FHLB. As of September 30, 2019 the Bank had remaining credit availability of $143.4 million under this facility.

The following table details the long-term advances the Company had outstanding with the FHLB at September 30, 2019 and December 31, 2018:


	September 30, 2019
Dollars in Thousands	Outstanding Balance	Interest Rate		Maturity Date	Interest Payment
Fixed rate hybrid	15,000	2.09	%	June 2020	Fixed, paid monthly
Fixed rate hybrid	5,000	3.04	%	November 2020	Fixed, paid monthly
Fixed rate hybrid	5,000	2.91	%	November 2020	Fixed, paid quarterly
Fixed rate hybrid	6,000	2.44	%	April 2021	Fixed, paid quarterly
Convertible*	10,000	2.68	%	May 2021	Fixed, paid quarterly
Fixed rate hybrid	5,000	3.15	%	October 2022	Fixed, paid quarterly
Principal reducing credit	1,500	1.62	%	March 2023	Fixed, paid quarterly
Principal reducing credit	1,495	1.99	%	March 2026	Fixed, paid quarterly
Total long-term advances	48,995


	December 31, 2018
Dollars in Thousands	Outstanding Balance	Interest Rate		Maturity Date	Interest Payment
Fixed rate hybrid	15,000	1.51	%	June 2019	Fixed, paid monthly
Fixed rate hybrid	5,000	3.04	%	November 2020	Fixed, paid monthly
Fixed rate hybrid	5,000	2.91	%	November 2020	Fixed, paid quarterly
Convertible*	10,000	2.68	%	May 2021	Fixed, paid quarterly
Fixed rate hybrid	5,000	3.15	%	October 2022	Fixed, paid quarterly
Principal reducing credit	1,821	1.62	%	March 2023	Fixed, paid quarterly
Principal reducing credit	1,668	1.99	%	March 2026	Fixed, paid quarterly
Total long-term advances	43,489

* The FHLB has the option of converting the rate on this long-term borrowing to a three month LIBOR-based floating rate in May 2020.

Average short‑term borrowing under FHLB approximated $3.2 million and $1.4 million for the nine months ended September 30, 2019 and the year ended December 31, 2018, respectively.

The Bank has pledged a portion of its residential and commercial mortgage loan portfolio as collateral for these credit facilities. Principal balances outstanding on these pledged loans totaled approximately $157.2 million and $135.3 million at September 30, 2019 and December 31, 2018, respectively.

In addition to the FHLB credit facility, in October 2015, the Company entered into a subordinated loan agreement for an aggregate principal amount of $2.0 million. Interest‑only payments are due quarterly at 6.71% per annum, and the outstanding principal balance matures in October 2025. In January 2018, the Company entered into a subordinated loan agreement for an aggregate principal amount of $4.5 million to fund the acquisition of Liberty Bell Bank, net of loan costs. Interest‑only payments are due quarterly at 6.875% per annum, and the outstanding principal balance matures in April 2028.

The proceeds of these long‑term borrowings were generally used to purchase higher yielding investment securities, fund additional loans, redeem preferred stock, or fund acquisitions. Additionally, the Bank has secured credit availability of $5.0 million with a correspondent bank and an unsecured credit availability of $5.0 million with a correspondent bank for short‑term liquidity needs, if necessary. The secured facility must be collateralized by specific securities at the time of any usage. At September 30, 2019 and December 31, 2018, there were no borrowings outstanding under these credit agreements.

Maturities on long‑term debt over the next five years are as follows (dollars in thousands):


2019	$	165
2020		25,659
2021		16,659
2022		5,659
2023		337