Note 12: Long Term Debt

FHLB Debt

As of March 31, 2017, the Bank had $60.0 million of outstanding FHLB debt, consisting of nine advances. As of December 31, 2016, five advances totaling $35.0 million were outstanding. The Company drew four new advances totaling $25.0 million during the first quarter of 2017.

The nine advances are shown in the following table.


Description	Balance		Originated		Current Interest Rate			Maturity Date
Adjustable Rate Hybrid	$	10,000,000		4/12/2013		3.40178	%		4/13/2020
Fixed Rate Credit		5,000,000		12/21/2015		0.99000	%		6/15/2017
Fixed Rate Credit		5,000,000		12/22/2015		1.08000	%		9/15/2017
Fixed Rate Credit		5,000,000		1/17/2017		0.91000	%		10/1/2017
Fixed Rate Credit		5,000,000		1/20/2017		0.99500	%		12/20/2017
Fixed Rate Credit		10,000,000		3/1/2017		0.79000	%		5/29/2017
Fixed Rate Credit		5,000,000		3/6/2017		0.71000	%		4/5/2017
Fixed Rate Credit		10,000,000		3/30/2017		0.90000	%		4/28/2017
Fixed Rate Credit		5,000,000		3/31/2017		0.89000	%		5/1/2017

	$	60,000,000

Advances on the FHLB lines are secured by a blanket lien on qualified 1 to 4 family residential real estate loans. Immediate available credit, as of March 31, 2017, was $54.8 million against a total line of credit of $120.8 million.

As of March 31, 2017 and December 31, 2016, the Company had $60.0 million and $35.0 million, respectively, in FHLB debt outstanding with a weighted average interest rate of 1.31% and 1.49%, respectively.

Subordinated Debt

On May 28, 2015, the Company issued an aggregate of $7,000,000 of subordinated notes (the “Notes”). The Notes have a maturity date of May 28, 2025. The Notes bear interest, payable on the 1st of March and September of each year, commencing September 1, 2015, at a fixed interest rate of 6.50% per year. The Notes are not convertible into common stock or preferred stock, and are not callable by the holders. The Company has the right to redeem the Notes, in whole or in part, without premium or penalty, at any interest payment date on or after May 28, 2020 and prior to the maturity date, but in all cases in a principal amount with integral multiples of $1,000, plus interest accrued and unpaid through the date of redemption. If an event of default occurs, such as the bankruptcy of the Company, the holder of a Note may declare the principal amount of the Note to be due and immediately payable. The Notes are unsecured, subordinated obligations of the Company and will rank junior in right of payment to the Company’s existing and future senior indebtedness. The Notes qualify as Tier 2 capital for regulatory reporting.


(Dollars in thousands)	Balance as of
(Dollars in thousands)	March 31, 2017
6.5% Subordinated Debt	$	7,000
Less: Issuance costs		(136	)

	$	6,864