Federal Home Loan Bank ("FHLB") Advances

3 Months Ended

Mar. 31, 2013

Federal Home Loan Bank ("FHLB") Advances

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

At March 31, 2013 and December 31, 2012, FHLB advances were as follows:

(in thousands)	March 31, 2013		December 31, 2012
Fixed interest rate advances with a weighted average
interest rate of 2.18% due through 2021	$	472,570	$	442,600
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	$	572,570	$	542,600

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(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 March 31, 2013, Republic had available collateral to borrow an additional $470 million from the FHLB. In addition to its borrowing line with the FHLB, Republic also had unsecured lines of credit totaling $216 million available through various other financial institutions.

During the first quarter of 2012, RB&T prepaid $81 million in FHLB advances. These advances had a weighted average cost of 3.56% and were all scheduled to mature between October 2012 and May 2013. The Bank incurred a $2.4 million early termination penalty in connection with this transaction.

Aggregate future principal payments on FHLB advances, based on contractual maturity dates are detailed below:

Year	(in thousands)
2013	$	35,000
2014		178,000
2015		25,000
2016		82,000
2017		125,000
Thereafter		127,570
Total	$	572,570

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

(in thousands)	March 31, 2013		December 31, 2012
First lien, single family residential real estate	$	1,093,467	$	1,053,946
Home equity lines of credit		109,929		116,043
Multi-family commercial real estate		8,669		7,017