FEDERAL HOME LOAN BANK ADVANCES

9 Months Ended

Sep. 30, 2016

8. FEDERAL HOME LOAN BANK ADVANCES

At September 30, 2016 and December 31, 2015, FHLB advances were as follows:


(in thousands)	September 30, 2016		December 31, 2015

Overnight advances	$	430,000	$	150,000
Variable interest rate advance indexed to 3-Month LIBOR plus 0.14% due on December 20, 2016		10,000		10,000
Fixed interest rate advances with a weighted average interest rate of 1.64% due through 2023		372,500		439,500
Putable fixed interest rate advances with a weighted average interest rate of 4.39% due through 2017*		50,000		100,000
Total FHLB advances	$	862,500	$	699,500

*On a quarterly basis, the FHLB has the right to require payoff of these advances by the Bank at no penalty.

Each FHLB advance is payable at its maturity date, with a prepayment penalty for fixed rate advances that are paid off earlier than maturity. The Company incurred an $846,000 prepayment penalty on payoff of $50 million in FHLB advances for the three and nine months ended September 30, 2016, with no similar penalty incurred in the prior periods.

FHLB advances are collateralized by a blanket pledge of eligible real estate loans. At September 30, 2016 and December 31, 2015, Republic had available borrowing capacity of $312 million and $567 million, respectively, from the FHLB. In addition to its borrowing capacity with the FHLB, Republic also had unsecured lines of credit totaling $170 million available through various other financial institutions as of September 30, 2016 and December 31, 2015.

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

2016 (Overnight)	$	430,000	0.40	%
2016		25,000	1.09
2017		95,000	2.95
2018		117,500	1.53
2019		100,000	1.80
2020		65,000	1.78
2021		20,000	1.86
Thereafter		10,000	2.14
Total	$	862,500	1.18

Due to their nature, the Bank considers average balance information more meaningful than period-end balances for its overnight borrowings from the FHLB. Information regarding short-term overnight FHLB advances follows:


(dollars in thousands)	September 30, 2016			December 31, 2015

Outstanding balance at end of period	$	430,000		$	150,000
Weighted average interest rate at end of period		0.40	%		0.35	%


	Three Months Ended						Nine Months Ended
	September 30,						September 30,
(dollars in thousands)	2016			2015			2016			2015

Average outstanding balance during the period	$	99,946		$	87,009		$	78,960		$	78,240
Average interest rate during the period		0.44	%		0.17	%		0.42	%		0.16	%
Maximum outstanding at any month end during the period	$	430,000		$	182,000		$	495,000		$	387,000

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


(in thousands)	September 30, 2016		December 31, 2015

First lien, single family residential real estate	$	1,213,275	$	1,346,663
Home equity lines of credit		301,159		272,863
Multi-family commercial real estate		9,692		10,227