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Short-Term Borrowings and Long-Term Debt
 12 Months Ended
Dec. 31, 2021
Debt Disclosure [Abstract]  
Short-Term Borrowings and Long-Term Debt SHORT-TERM BORROWINGS AND LONG-TERM DEBT
The Bank’s long-term debt and short-term borrowings consist of advances from the FHLB of Atlanta. In addition, during 2020 the Bank added the Federal Reserve Bank's Paycheck Protection Program Liquidity Facility ("PPPLF") to provide liquidity support, if needed, to fund U.S. SBA PPP loans. The Bank classifies debt based upon original maturity and does not reclassify debt to short-term status during its life. Long-term debt and short-term borrowings include fixed-rate long-term advances, short-term advances, daily advances and fixed-rate convertible advances.
Rates and maturities on long-term advances and short-term borrowings were as follows:
Fixed-RateFixed-Rate Convertible
December 31, 2021
Highest rate2.75 %0.79%
Lowest rate1.00 %0.79%
Weighted average rate2.26 %0.79%
Matures through20362030
December 31, 2020
Highest rate2.75 %0.79%
Lowest rate1.00 %0.43%
Weighted average rate2.01 %0.59%
Matures through20362030
Average rates of long-term debt, short-term borrowings, and PPPLF advances were as follows:
(dollars in thousands)At or for the Year Ended December 31,
20212020
Long-term debt
Long-term debt outstanding at end of period$12,231 $27,302 
Weighted average rate on outstanding long-term debt0.82 %0.61 %
Maximum outstanding long-term debt of any month end27,296 67,359 
Average outstanding long-term debt23,072 53,615 
Approximate average rate paid on long-term debt0.95 %2.56 %
Short-term borrowings
Short-term borrowings outstanding at end of period$— $— 
Weighted average rate on short-term borrowings— %— %
Maximum outstanding short-term borrowings at any month end— 27,000 
Average outstanding short-term borrowings— 8,156 
Approximate average rate paid on short-term borrowings— %1.36 %
PPPLF advances
PPPLF advances outstanding at end of period$— $— 
Weighted average rate on PPPLF advances— %— %
Maximum outstanding PPPLF advances at any month end— 127,674 
Average outstanding PPPLF advances— 60,360 
Approximate average rate paid on PPPLF advances— %0.35 %
The Bank’s fixed-rate debt generally consists of advances with monthly interest payments and principal due at maturity.
The Bank’s fixed-rate convertible long-term debt is callable by the issuer, after an initial period ranging from 3 months to 10 years. The instruments are callable at the end of the initial period. As of December 31, 2021, all fixed-rate convertible debt has passed its call date. As of December 31, 2020, all fixed-rate convertible debt was callable in 2021. All advances have a prepayment penalty, determined based upon prevailing interest rates.
During the year ended December 31, 2021, the Bank made prepayments of $15.0 million on long-term debt resulting in prepayment fees of $0.1 million. During the year ended December 31, 2020, the Bank paid off $10.0 million of maturing long-term debt and added two long-term fixed-rate convertible advances totaling $27.0 million, maturing in 2030 at 0.79% and 0.43%, respectively. The Bank made prepayments of $30.0 million on long-term debt resulting in prepayment fees of $0.6 million, during the year ended December 31, 2020.
During 2020, the Bank used the PPPLF to fund SBA PPP loans to ensure available borrowing availability from the FHLB was not impacted. Federal Reserve PPPLF advances are non-recourse and receive 100% value for the pledged PPP loan collateral. As of December 31, 2021, the Bank did not have any borrowings outstanding under the PPPLF. The Bank had access to this facility in 2021 for any new SBA PPP loans funded with legislation passed in December 2020 that authorized another round of federal government funding.
At December 31, 2021 and 2020, $0.2 million or 1.89% and $0.3 million or 1.11%, respectively, of the Bank’s long-term debt was fixed for rate and term, as the conversion optionality of the advances have either been exercised or expired. The contractual maturities of long-term debt were as follows at December 31, 2021:
(dollars in thousands)
December 31, 2021
Fixed-Rate
Fixed-Rate Convertible
Total
Due in 2022$65 $— $65 
Due in 2023— — — 
Due in 2024— — — 
Due in 2025— — — 
Due in 2026— — — 
Thereafter
166 12,000 12,166 
$231 $12,000 $12,231 
The Bank has lines available for short-term borrowings of less than a year. There were no daily or short-term advances as of December 31, 2021 and December 31, 2020.
Under the terms of an Agreement for Advances and Security Agreement with Blanket Floating Lien (the “Agreement”), the Bank maintains collateral with the FHLB consisting of 1-4 family residential first mortgage loans, second mortgage loans, commercial real estate and investment securities. The Agreement limits total advances to 30% of assets, which were $697.8 million and $607.4 million at December 31, 2021 and 2020, respectively.
At December 31, 2021, $723.1 million of loans and securities were pledged or in safekeeping at the FHLB. Loans and securities are subject to collateral eligibility rules and are adjusted for market value and collateral value factors to arrive at lendable collateral values. At December 31, 2021, FHLB lendable collateral was valued at $605.7 million. At December 31, 2021, the Bank had total lendable pledged loans collateral at the FHLB of $192.0 million of which $116.8 million was available to borrow in addition to outstanding advances of $12.2 million and letter of credit of $63.0 million. Unpledged lendable securities collateral was $413.7 million, bringing total available borrowing capacity to $530.5 million at December 31, 2021.
At December 31, 2020, $542.6 million of loans and securities were pledged or in safekeeping at the FHLB. Loans and securities are subject to collateral eligibility rules and are adjusted for market value and collateral value factors to arrive at lendable collateral values. At December 31, 2020, FHLB lendable collateral was valued at $434.6 million. At December 31, 2020, the Bank had total lendable pledged loans collateral at the FHLB of $257.8 million of which $187.5 million was available to borrow in addition to outstanding advances of $27.3 million and letter of credit of $43.0 million. Unpledged lendable securities collateral was $176.8 million, bringing total available borrowing capacity to $364.3 million at December 31, 2020.
The Bank has established a short-term credit facility with the Federal Reserve Bank of Richmond under its Borrower in Custody program. The Bank had segregated collateral sufficient to draw $3.3 million and $6.0 million under this agreement at December 31, 2021 and 2020, respectively. In addition, the Bank has established unsecured short-term credit facilities with other commercial banks totaling $32.0 million and $32.0 million at December 31, 2021 and 2020. Additionally, the Bank has a $40.0 million repurchase credit facility. The repurchase facility requires the pledging of securities as collateral. $6.0 million and $7.8 million were outstanding loans under the Borrower in Custody or the unsecured and secured commercial lines at December 31, 2021 and 2020.