FEDERAL HOME LOAN BANK ("FHLB") ADVANCES

6 Months Ended

Jun. 30, 2015

FEDERAL HOME LOAN BANK ADVANCES

FEDERAL HOME LOAN BANK ("FHLB") ADVANCES

5.FEDERAL HOME LOAN BANK (“FHLB”) ADVANCES

At June 30, 2015 and December 31, 2014, FHLB advances were as follows:

(dollars in thousands)	June 30, 2015		December 31, 2014
Overnight advance with an interest rate of 0.15% due on July 1, 2015	$	387,000	$	198,000
Variable interest rate advance indexed to 3-Month LIBOR plus 0.14% due on December 19, 2015	10,000		10,000
Fixed interest rate advances with a weighted average interest rate of 1.68% due through 2023	419,500		399,500
Putable fixed interest rate advances with a weighted average interest rate of 4.39% due through 2017(1)	100,000		100,000
Total FHLB advances	$	916,500	$	707,500

(1) - Represents putable advances with the FHLB. These advances have original fixed rate periods ranging from one to five years with original maturities ranging from three to ten years if not put back to the Bank earlier by the FHLB. At the end of their respective fixed rate periods and on a quarterly basis thereafter, the FHLB has the right to require payoff of the advances by the Bank at no penalty. Based on market conditions at this time, the Bank does not believe that any of its putable advances are likely to be “put back” to the Bank in the short-term by the FHLB.

Each FHLB advance is payable at its maturity date, with a prepayment penalty for fixed rate advances that are paid off earlier than maturity. FHLB advances are collateralized by a blanket pledge of eligible real estate loans. At June 30, 2015 and December 31, 2014, Republic had available collateral to borrow an additional $254 million and $452 million, respectively, from the FHLB. In addition to its borrowing line with the FHLB, Republic also had unsecured lines of credit totaling $166 million available through various other financial institutions as of June 30, 2015 and December 31, 2014.

Aggregate future principal payments on FHLB advances based on contractual maturity and the weighted average cost of such advances are detailed below:

			Weighted
			Average
Year (dollars in thousands)	Principal		Rate
2015 (Overnight)	$	387,000	0.15	%
2015	10,000		0.41	%
2016	82,000		1.74	%
2017	145,000		3.44	%
2018	117,500		1.53	%
2019	100,000		1.80	%
2020	45,000		1.84	%
Thereafter	30,000		1.95	%
Total	$	916,500	1.32	%

Information regarding short-term overnight FHLB advances follows:

(dollars in thousands)	June 30, 2015			December 31, 2014
Outstanding balance at end of period	$	387,000		$	198,000
Weighted average interest rate at end of period	0.15		%	0.14		%

	Three Months Ended						Six Months Ended
	June 30,						June 30,
(dollars in thousands)	2015			2014			2015			2014
Average outstanding balance during the period	$	111,193		$	11,047		$	73,783		$	3,199
Average interest rate during the period	0.15		%	0.25		%	0.15		%	0.25		%
Maximum outstanding at any month end during the period	$	387,000		$	93,000		$	387,000		$	93,000

The following table illustrates real estate loans pledged to collateralize advances and letters of credit with the FHLB:

(in thousands)	June 30, 2015		December 31, 2014
First lien, single family residential real estate	$	1,338,184	$	1,333,811
Home equity lines of credit	105,112		103,064
Multi-family commercial real estate	19,786		12,682