Federal Home Loan Bank Advances

9 Months Ended

Sep. 30, 2012

Federal Home Loan Bank Advances/Regulatory Matters [Abstract]

FEDERAL HOME LOAN BANK ADVANCES

7. FEDERAL HOME LOAN BANK ADVANCES

Our outstanding balances at September 30, 2012 totaled $35.0 million and mature at varying dates from March 2017 through September 2017, with fixed rates of interest from 1.22% to 1.51% and averaging 1.35%. At December 31, 2011, outstanding balances totaled $45.0 million with maturities ranging from March 2012 through January 2014, with fixed rates of interest from 3.04% to 4.42% and averaging 3.57%.

During the third quarter of 2012, we modified the terms of two existing FHLB advances (totaling $15.0 million), extending the weighted average maturity from 1.3 years to 5.0 years and decreasing the weighted average interest rate from 3.10% to 1.51%. As the modification did not result in the terms being substantially different as defined by current accounting guidance, the transaction was accounted for as a modification, not extinguishment of debt. Accordingly, the prepayment fees incurred are amortized as an adjustment to the rate over the life of the new five-year advance.

Each advance is payable at its maturity date, and is subject to a prepayment fee if paid prior to the maturity date. The advances are collateralized by residential mortgage loans, first mortgage liens on multi-family residential property loans, first mortgage liens on commercial real estate property loans, and substantially all other assets of our bank, under a blanket lien arrangement. Our borrowing line of credit as of September 30, 2012 totaled about $129 million, with availability approximating $89 million.

Maturities of currently outstanding FHLB advances are as follows:

2012	$	0
2013		0
2014		0
2015		0
2016		0
2017		35,000,000