ADVANCES FROM THE FEDERAL HOME LOAN BANK

12 Months Ended

Sep. 30, 2011

ADVANCES FROM THE FEDERAL HOME LOAN BANK

ADVANCES FROM THE FEDERAL HOME LOAN BANK

9. ADVANCES FROM THE FEDERAL HOME LOAN BANK

Advances from the Federal Home Loan Bank of Des Moines at September 30, 2011 and 2010 are summarized as follows:

	2011				2010
			Weighted				Weighted
			Average				Average
			Interest				Interest
	Amount		Rate		Amount		Rate
Maturing within the year ending September 30,
2010 (Overnight)	$	—	—	%	$	152,000,000	0.27	%
2015	25,000,000		2.70		25,000,000		2.70
Thereafter	4,000,000		5.48		4,000,000		5.48
Total	$	29,000,000	3.08	%	$	181,000,000	0.72	%

The average balances of advances from the Federal Home Loan Bank were $81.4 million and $96.9 million, respectively, and the maximum month-end balances were $257.5 million and $181.0 million, respectively, for the years ended September 30, 2011 and 2010.  The average rates paid during the years ended September 30, 2011 and 2010 were 1.32% and 1.80%, respectively.

The Bank has the ability to borrow funds from the Federal Home Loan Bank equal to 35% of the Bank’s total assets under a blanket agreement that assigns all investments in Federal Home Loan Bank stock as well as qualifying first mortgage loans as collateral to secure the amounts borrowed. In addition to the $29.0 million in advances outstanding at September 30, 2011, the Bank had approximately $206.6 million in additional borrowing capacity available to it under this arrangement.  The assets underlying the Federal Home Loan Bank borrowings are under the Bank’s physical control.