Note 4. Credit Facilities

The Company owns capital stock of the FHLB as a condition for a $311.2 million convertible advance credit facility from the FHLB. As of March 31, 2020 the Company had remaining credit availability of $221.5 million under this facility.

The following table details the advances the Company had outstanding with the FHLB at March 31, 2020 and December 31, 2019 and outstanding lines of credit:


	March 31, 2020
Dollars in Thousands	Outstanding Balance	Interest Rate		Maturity Date	Interest Payment
Fixed rate hybrid	12,000	1.31		April 2020	Fixed, at maturity
Fixed rate hybrid	6,000	0.30		April 2020	Fixed, at maturity
Fixed rate hybrid	3,200	0.30		April 2020	Fixed, at maturity
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	1,286	1.62	%	March 2023	Fixed, paid quarterly
Fixed rate hybrid	9,900	1.29	%	March 2024	Fixed, paid quarterly
Fixed rate hybrid	9,900	1.29	%	March 2024	Fixed, paid quarterly
Principal reducing credit	1,380	1.99	%	March 2026	Fixed, paid quarterly
Total advances	89,666


	December 31, 2019
Dollars in Thousands	Outstanding Balance	Interest Rate		Maturity Date	Interest Payment
Fixed rate	12,000	1.73	%	January 2020	Fixed, at maturity
Fixed rate	4,500	1.76	%	January 2020	Fixed, at maturity
Fixed rate	7,600	1.68	%	January 2020	Fixed, at maturity
Fixed rate	7,700	1.68	%	January 2020	Fixed, at maturity
Fixed rate	6,000	1.70	%	January 2020	Fixed, at maturity
Fixed rate	3,200	1.71	%	January 2020	Fixed, at maturity
Fixed rate	7,000	1.70	%	January 2020	Fixed, at maturity
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
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	1,393	1.62	%	March 2023	Fixed, paid quarterly
Principal reducing credit	1,437	1.99	%	March 2026	Fixed, paid quarterly
Total advances	96,830

* 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 borrowings under FHLB approximated $45 million and $9.3 million for the three months ended March 31, 2020 and the year ended December 31, 2019, respectively. Borrowings with the FHLB are considered short-term if they have an original maturity of less than a year.

The Company 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 $241.9 million and $223.5 million at March 31, 2020 and December 31, 2019, 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.

Partners owns a one-half undivided interest in 410 William Street, Fredericksburg, Virginia. Partners purchased a one-half interest in the land for cash, plus additional settlement costs, and assumption of one-half of the remaining deed of trust loan on December 14, 2012. Partners indemnified the indemnities, who are the personal guarantors of the deed of trust loan in the amount of $886 thousand, which was one-half of the outstanding balance of the loan as of the purchase date. Partners has a remaining obligation under the note payable of $698 thousand as of March 31, 2020. The loan was refinanced on April 30, 2015 with a twenty-five year amortization. The interest rate is fixed at 3.60% for the first 10 years, and then becomes a variable rate of 3.0% plus the 10 year Treasury rate until maturity.

The Company provides JMC a warehouse line of credit, which is eliminated in consolidation. In addition, JMC has a warehouse line of credit with another financial institution in the amount of $3.0 million. The interest rate is the weekly average of the one month LIBOR plus 2.250%, rounded to the nearest 0.125% (3.9% at March 31, 2020 and 4.0% at December 31, 2020). The rate is subject to change the first of every month. Amounts borrowed are collateralized by a security interest in the mortgage loans financed under the line and are payable upon demand. The warehouse line of credit is set to renew or mature on May 31, 2020. The balance outstanding at March 31, 2020 an December 31, 2019 was $444 thousand and $576 thousand, respectively. Interest expense on the warehouse lines of credit was $20 thousand during the three months ended March 31, 2020.

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 Company has secured credit availability of $5.0 million with a correspondent bank and unsecured credit availability of $59.0 million with several other correspondent banks for short‑term liquidity needs, if necessary. The secured facility must be collateralized by specific securities at the time of any usage. At March 31, 2020 and December 31, 2019, there were no borrowings outstanding under these credit agreements.

The Company has pledged investment securities available for sale with a combined amortized cost and fair value of $2.3 million with the FRB to secure Discount Window borrowings at March 31, 2020 and December 31, 2019. At March 31, 2020 and December 31, 2019 there were no outstanding borrowings under these facilities.

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


2020	$	47,138
2021		16,659
2022		5,659
2023		337
2024		20,030