FEDERAL HOME LOAN BANK ADVANCES

3 Months Ended

Mar. 31, 2020

FEDERAL HOME LOAN BANK ADVANCES

FEDERAL HOME LOAN BANK ADVANCES

8.FEDERAL HOME LOAN BANK ADVANCES

FHLB advances were as follows:

(in thousands)	March 31, 2020		December 31, 2019
Overnight advances	$	125,000	$	200,000
Variable interest rate advance indexed to 3-Month LIBOR plus 0.14%		10,000		10,000
Fixed interest rate advances		437,500		540,000
Total FHLB advances	$	572,500	$	750,000

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, 2020 and December 31, 2019, Republic had available borrowing capacity of $409 million and $259 million, respectively, from the FHLB. In addition to its borrowing capacity with the FHLB, Republic also had unsecured lines of credit totaling $125 million and $125 million available through various other financial institutions as of March 31, 2020 and December 31, 2019.  

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
2020 (Overnight)	$	125,000	0.14	%
2020 (Term)		377,500	0.60
2021		30,000	1.93
2022		20,000	2.12
2023		20,000	2.56
2024		—	—
Thereafter		—	—
Total	$	572,500	0.69	%

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 overnight FHLB advances follows:

	Three Months Ended
	March 31,
(dollars in thousands)	2020			2019
Average outstanding balance during the period	$	45,165		$	214,167
Average interest rate during the period		1.56	%		2.48	%
Maximum outstanding at any month end during the period	$	250,000		$	320,000

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

(in thousands)	March 31, 2020		December 31, 2019
First lien, single family residential real estate	$	1,073,076	$	1,099,941
Home equity lines of credit		266,663		274,990