Federal Home Loan Bank Advances

12 Months Ended

Dec. 31, 2014

FEDERAL HOME LOAN BANK ADVANCES

The Corporation had no long-term Federal Home Loan Bank (FHLB) advances outstanding at December 31, 2014 and 2013. FHLB advances are collateralized by a blanket lien on qualified one- to four-family residential mortgage loans. At December 31, 2014, the carrying value of these qualified loans was $1.04 billion. The Corporation's additional borrowing availability through the FHLB, subject to the FHLB's credit requirements and policies and based on the amount of FHLB stock owned by the Corporation, was $360 million at December 31, 2014.

Prepayments of fixed-rate advances are subject to prepayment fees under the provisions and conditions of the credit policy of the FHLB. On January 22, 2013, the Corporation paid off early all of its FHLB advances outstanding of $34.3 million, resulting in a prepayment fee of $0.8 million. The Corporation did not incur any prepayment fees in 2014 or 2012.

- Definition

The entire disclosure for borrowing from the Federal Home Loan Bank, including: (i) general description; (ii) title and nature of obligation; (iii) interest rate; (iv) payment terms; (v) maturity dates by year; (vi) collateral requirements; (vii) restrictive covenants; (viii) priority; (ix) conversion or redemption features; (x) carrying value of assets pledged as collateral; (xi) combined aggregate maturities for next five years; (xii) unused or available balances.

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