6. DEPOSITS and BORROWED FUNDS

Deposits - The amount of noninterest-bearing deposits was $167.0 million and $150.2 million as of September 30, 2014 and 2013, respectively. Certificates of deposit with a minimum denomination of $250 thousand were $402.1 million and $363.8 million as of September 30, 2014 and 2013, respectively. Deposits in excess of $250 thousand may not be fully insured by the Federal Deposit Insurance Corporation.

FHLB Borrowings - FHLB borrowings at September 30, 2014 consisted of $2.57 billion in fixed-rate FHLB advances and $800.0 million against the variable-rate FHLB line of credit. The line of credit is set to expire on November 20, 2015, at which time it is expected to be renewed automatically by the FHLB for a one year period. FHLB borrowings at September 30, 2013 consisted of $2.51 billion in fixed-rate FHLB advances.

During the fourth quarter of fiscal year 2014, the Bank implemented a leverage strategy ("daily leverage strategy") to increase earnings. The daily leverage strategy involves borrowing up to $2.10 billion against the Bank's FHLB line of credit and currently consists of two leverage tiers. The first tier of $800.0 million is intended to remain borrowed against the line of credit for an extended period of time. The second tier of $1.30 billion is borrowed in the first days of each quarter and paid off prior to each quarter end. The proceeds of the borrowings, net of the required FHLB stock holdings, is deposited at the Federal Reserve Bank of Kansas City.

FHLB advances at September 30, 2014 and 2013 were comprised of the following:



	2014			2013
	(Dollars in thousands)
Fixed-rate FHLB advances	$	2,575,000		$	2,525,000
Deferred prepayment penalty	(5,350		)	(11,575		)
Deferred gain on terminated interest rate swaps	27			113
	$	2,569,677		$	2,513,538

Weighted average contractual interest rate on FHLB advances	2.19		%	2.33		%
Weighted average effective interest rate on FHLB advances⁽¹⁾	2.39			2.67


(1)	The effective rate includes the net impact of the amortization of deferred prepayment penalties related to the prepayment of certain FHLB advances and deferred gains related to the termination of interest rate swaps.

FHLB borrowings are secured by certain qualifying loans pursuant to a blanket collateral agreement with the FHLB and certain securities. Per the FHLB's lending guidelines, total FHLB borrowings cannot exceed 40% of total Bank assets without the pre-approval of the FHLB president. In July 2014, the president of the FHLB approved an increase in the Bank's borrowing limit to 55% of total assets for one year. At September 30, 2014, the ratio of the par value of the Bank's FHLB borrowings to the Bank's total assets, as reported to the OCC, was 34%. During the fourth quarter of fiscal year 2014, the Bank's FHLB borrowings to the Bank's total assets was in excess of 40% due to the daily leverage strategy.

Repurchase Agreements - At September 30, 2014 and 2013, the Company had repurchase agreements outstanding in the amounts of $220.0 million and $320.0 million, with weighted average contractual rates of 3.08% and 3.43%, respectively. All of the Company's repurchase agreements at September 30, 2014 and 2013 were fixed-rate.

Maturity of Borrowed Funds and Certificates of Deposit - The following table presents the scheduled maturity of FHLB advances, at par, repurchase agreements, and certificates of deposit as of September 30, 2014:



	FHLB		Repurchase		Certificates
	Advances		Agreements		of Deposit
	Amount		Amount		Amount
	(Dollars in thousands)
2015	$	600,000	$	20,000	$	1,269,331
2016	575,000		—		572,363
2017	500,000		—		351,939
2018	200,000		100,000		281,154
2019	200,000		—		56,827
Thereafter	500,000		100,000		552
	$	2,575,000	$	220,000	$	2,532,166