(1)	All of the junior subordinated debt above is adjustable rate based on three-month LIBOR plus a spread ranging from 140 basis points to 285 basis points.

Short-Term FHLB Advances

The Company has from time-to-time entered into borrowing agreements with the FHLB. Advances under these agreements are collateralized by stock in the FHLB, qualifying first and second mortgage residential loans, and commercial real estate loans under a blanket-floating lien.

As of December 31, 2019, and 2018, there was $700.0 million and $150.0 million in outstanding Short-Term FHLB advances, respectively. For the years ended December 31, 2019 and 2018, the average balance for Short-Term FHLB advances was $538.6 million and $42.3 million, respectively. The weighted average cost of the Short-Term FHLB advances at period end December 31, 2019 was 1.73% and the weighted average cost year to date for the year ended December 31, 2019 was 2.35%. The weighted average cost of the FHLB advances at period end December 31, 2018 was 2.64% and the weighted average cost year to date for the year ended December 31, 2018 was 1.57%. The weighted average cost of the FHLB advances at period end December 31, 2017 was 1.48% and the weighted average cost year to date for the year ended December 31, 2017 was 0.97%. Net eligible loans of the Company pledged via a blanket lien to the FHLB for advances and letters of credit at December 31, 2019, were approximately $3.3 billion which allows the Company a total borrowing capacity at FHLB of approximately $2.5 billion. After accounting for letters of credit totaling $231.1 million, the Company had unused net credit available with the FHLB in the amount of approximately $1.6 billion at December 31, 2019.

During the first quarter of 2019, we paid-off early the FHLB advance of $150.0 million that was outstanding at December 31, 2018 that would have matured in December 2019. We then borrowed $500 million in March 2019 and $200 million in June 2019 in 90-day fixed rate FHLB advances for which at this time we plan to continuously renew. At the same time, we entered into interest rate swap agreements with a notional amount of $350 million (4 year agreement) and $350 million (5 year agreement) to manage the interest rate risk related to these 90-day FHLB advances. We borrowed these FHLB advances to provide liquidity for operations, loan growth and investment growth.

Junior Subordinated Debt

The obligations of the Company with respect to the issuance of the capital securities constitute a full and unconditional guarantee by the Company of the trusts’ obligations with respect to the capital securities. Subject to certain exceptions and limitations, the Company may elect from time to time to defer interest payments on the junior subordinated debt securities, which would result in a deferral of distribution payments on the related capital securities.

All of the Company’s junior subordinated debt is callable after five years from issuance. Therefore, all of the junior subordinated debt is callable at December 31, 2019.

As of December 31, 2019, the sole assets of the trusts were an aggregate of $115.8 million of the Company’s junior subordinated debt securities with like maturities and like interest rates to the trust preferred securities.

As of December 31, 2019, the Company recorded a $115.8 million liability for the junior subordinated debt securities, net of a $2.7 million discount recorded on Southeastern Bank Financial Statutory Trust I and II, Citizens South Banking Corporation Statutory Trust I, Community Capital Statutory Trust I, FCRV Statutory Trust I, Provident Community Bancshares Capital Trust I and II. The Company, as issuer, can call any of these subordinated debt securities without penalty. If the Company were to call the securities, the amount paid to the holders would be $118.6 million and the Company would fully amortize any remaining discount into interest expense. The remaining discount is being amortized over either a two and one-half year period or five year period.

As of December 31, 2019, and 2018, there was $115.8 million (net of discount of $2.7 million) and $115.2 million (net of discount of $3.4 million), respectively, in junior subordinated debt. The weighted average cost of the junior subordinated debt at period end December 31, 2019 was 3.60% and the weighted average cost year to date for the year ended December 31, 2019 of 4.20%. This does not take into account the discount. If the discount were taken into account the weighted average cost year to date would be 4.88%. This compares to a weighted average cost of the junior subordinated debt at period end December 31, 2018 of 4.45% and the weighted average cost year to date for the year ended December 31, 2018 of 3.90%. If the discount were taken into account the weighted average cost year to date would be 4.61% in 2018.

For regulatory purposes, the junior subordinated debt securities may be classified as Tier 1 Capital. Pursuant to the Basel III rules adopted by the bank regulatory agencies in July 2013, financial institutions with less than $15 billion in total assets may continue to include their trust preferred securities issued prior to May 19, 2010 in Tier 1 capital, but cannot include in Tier 1 capital any trust preferred securities issued after such date. A financial institution may continue to include its trust preferred securities in Tier 1 capital if it exceeds $15 billion in total assets through organic growth, but if it exceeds $15 billion in total assets through an acquisition or enters into an acquisition after exceeding $15 billion in total assets through organic growth, then the trust preferred securities would no longer be included in Tier 1 capital. Therefore, upon closing on the proposed merger with CenterState in 2020, our trust preferred securities of $115.8 million would no longer be included in Tier 1 capital. The trust preferred securities represent a minority investment in an unconsolidated subsidiary, which is currently included in Tier 1 Capital so long as it does not exceed 25% of total Tier 1 Capital.

Line of Credit

On November 15, 2019, the Company entered into an amendment to its Credit Agreement (the “Agreement”) with U.S. Bank National Association (the “Lender”). The Agreement provides for a $25 million unsecured line of credit by the Lender to the Company. The maturity date of the Agreement is November 15, 2020, provided that the Agreement may be extended subject to the approval of the Lender. Borrowings by the Company under the Agreement will bear

interest at a rate per annum equal to one-month LIBOR plus 1.35%. As of December 31, 2019 and 2018, and there was no outstanding balance associated with the line of credit.

Principal maturities of other borrowings are summarized below:


	Junior
	Subordinated		FHLB
(Dollars in thousands)	Debt		Advances		Other		Total
Year Ended December 31,
2020	$	—	$	700,000	$	7	$	700,007
2021		—		—		8		8
2022		—		—		8		8
2023		—		—		8		8
2024		—		—		8		8
Thereafter		115,833		—		64		115,897
	$	115,833	$	700,000	$	103	$	815,936