Federal Home Loan Bank Advances

12 Months Ended

Dec. 31, 2012

Federal Home Loan Bank, Advances, Activity for Year [Abstract]

Federal Home Loan Bank Advances

Federal Home Loan Bank Advances

A summary of the outstanding FHLB advances at December 31, 2012 and 2011, is as follows:

(Dollars in thousands)	2012		2011
1.39% advance due February 2012	$	—	$	8,000
1.48% advance due April 2012	—		52,000
2.96% advance due January 2013	—		5,000
2.01% advance due February 2013	—		30,000
2.07% advance due April 2013	—		69,000
3.92% advance due April 2013	—		1,500
3.34% advance due June 2013	—		42,000
1.45% advance due July 2013	26,000		26,000
2.62% advance due April 2014	—		25,000
1.94% advance due July 2014	10,000		10,000
1.58% advance due September 2014	25,300		25,473
1.63% advance due September 2014	25,322		25,508
0.72% advance due February 2015	141,000		—
0.73% advance due February 2015	5,000		—
4.12% advance due February 2015	—		25,000
0.99% advance due February 2016	26,500		—
4.55% advance due February 2016	—		45,000
4.83% advance due May 2016	—		50,000
1.25% advance due February 2017	25,000		—
3.47% advance due November 2017	10,000		10,000
1.49% advance due February 2018	95,000		—
4.18% advance due February 2022	25,000		25,000
Total Federal Home Loan Bank advances	$	414,122	$	474,481

Federal Home Loan Bank advances consist of obligations of the banks and are collateralized by qualifying residential real estate and home equity loans and certain securities. FHLB advances are stated at par value of the debt adjusted for unamortized fair value adjustments recorded in connection with advances acquired through acquisitions. In order to achieve lower interest rates and to extend maturities, the Company restructured $292.5 million of FHLB advances in 2012, paying $22.4 million in prepayment fees. The Company did not restructure any FHLB advances in 2011. These prepayment fees are classified in other assets on the Consolidated Statements of Condition and are amortized as an adjustment to interest expense using the effective interest method.

Approximately $35.0 million of the FHLB advances outstanding at December 31, 2012, have varying call dates in February 2013. At December 31, 2012, the weighted average contractual interest rate on FHLB advances was 1.40% and the weighted average effective interest rate, which reflects amortization of fair value adjustments associated with FHLB advances acquired through acquisitions, was 1.32%.

The banks have arrangements with the FHLB whereby, based on available collateral, they could have borrowed an additional $570.6 million at December 31, 2012.