Note 9: Advances From Federal Home Loan Bank

12 Months Ended

Dec. 31, 2014

Notes

Note 9: Advances From Federal Home Loan Bank

Note 9:       Advances From Federal Home Loan Bank

Advances from the Federal Home Loan Bank at December 31, 2014 and 2013, consisted of the following:

	December 31, 2014		December 31, 2013
		Weighted		Weighted
		Average		Average
		Interest		Interest
Due In	Amount	Rate	Amount	Rate
(In Thousands)
2014	$--	--%	2,315	1.02%
2015	240,065	0.41	10,065	3.87
2016	70	5.14	25,070	3.81
2017	30,826	3.26	85,825	3.92
2018	81	5.14	81	5.06
2019	28	5.14	29	5.06
2020 and thereafter	500	5.54	500	5.54
	271,570	0.75	123,885	3.85
Unamortized fair value adjustment	71		2,872
	$271,641		$126,757

Included in the Bank’s FHLB advances at December 31, 2014 and December 31, 2013, was a $10.0 million advance with a maturity date of October 26, 2015.  The interest rate on this advance is 3.86%.  The advance has a call provision that allows the Federal Home Loan Bank of Topeka to call the advance quarterly.

Included in the Bank’s FHLB advances at December 31, 2014 and December 31, 2013, was a $30.0 million advance with a maturity date of November 24, 2017.  The interest rate on this advance is 3.20%.  The advance has a call provision that allows the Federal Home Loan Bank of Des Moines to call the advance quarterly.

Included in the Bank’s FHLB advances at December 31, 2013, was a $25.0 million advance with a maturity date of December 7, 2016.  The interest rate on this advance was 3.81%.  This advance was repaid by the Bank in June 2014.

Included in the Bank’s FHLB advances at December 31, 2013, was a $30.0 million advance with a maturity date of March 29, 2017.  The interest rate on this advance was 4.07%.  This advance was repaid by the Bank in June 2014.

Included in the Bank’s FHLB advances at December 31, 2013, was a $25.0 million advance with a maturity date of June 20, 2017.  The interest rate on this advance was 4.57%.  This advance was repaid by the Bank in June 2014.

The Company prepaid a total of $80 million of its Federal Home Loan Bank advances and $50 million of structured repurchase agreements (see Note 12) during the year ended December 31, 2014 as part of a strategy to utilize the Bank’s liquidity and improve net interest margin.  As a result, the Company incurred one-time prepayment penalties totaling $7.4 million, which were included in other operating expenses. 

The Bank has pledged FHLB stock, investment securities and first mortgage loans free of pledges, liens and encumbrances as collateral for outstanding advances.  No investment securities were specifically pledged as collateral for advances at December 31, 2014 and 2013.  Loans with carrying values of approximately $1.10 billion and $878.5 million were pledged as collateral for outstanding advances at December 31, 2014 and 2013, respectively.  The Bank had potentially available $395.3 million remaining on its line of credit under a borrowing arrangement with the FHLB of Des Moines at December 31, 2014.