FEDERAL HOME LOAN BANK ADVANCES

12 Months Ended

Dec. 31, 2012

FEDERAL HOME LOAN BANK ADVANCES

FEDERAL HOME LOAN BANK ADVANCES

15. FEDERAL HOME LOAN BANK ADVANCES

Federal Home Loan Bank (“FHLB”) advances and their related weighted average interest rates are summarized as follows:

	December 31, 2012			December 31, 2011
Year of Maturity	Amount		Rate	Amount		Rate
	(Dollars in thousands)
2013	$	—	—%	$	78,683	4.43%
2014	—		—%	52,656		4.43%
2015	—		—%	21,557		4.46%
2016	—		—%	80,662		3.96%
After 2016	312,975		0.63%	221,693		4.07%
Total	$	312,975	0.63%	$	455,251	4.17%

Total outstanding FHLB advances amounted to $313.0 million and $455.3 million at December 31, 2012 and 2011, respectively. There were no outstanding overnight borrowings at December 31, 2012 and 2011. The Company restructured FHLB advances of $375.0 million during 2012, reducing the contractual average effective rates on these borrowings. As a result of the modification the Company incurred a $48.2 million modification cost which has been deferred and is being treated as a discount on the corresponding debt. All advances as of December 31, 2012 and December 31, 2011 are secured by real estate loans.

The Company’s available borrowing capacity from unused FHLB advances totaled $3.25 billion and $3.61 billion at December 31, 2012 and 2011, respectively. The Company’s available borrowing capacity from FHLB advances is derived from its outstanding FHLB advances and from its portfolio of loans that are pledged to the FHLB. During 2012, long-term FHLB advances totaling $93.0 million were prepaid, with a related $6.8 million in prepayment penalties. In comparison, we prepaid $523.5 million of FHLB advances, with a related $11.8 million in prepayment penalties during 2011. Also, at December 31, 2012 and 2011, the Company had additional available borrowing capacity of $1.31 billion and $1.02 billion, respectively, from the Federal Reserve Bank’s discount window derived from its portfolio of loans that are pledged to the Federal Reserve Bank.