FEDERAL HOME LOAN BANK ADVANCES

12 Months Ended

Dec. 31, 2014

Banking And Thrift [Abstract]

FEDERAL HOME LOAN BANK ADVANCES

11. FEDERAL HOME LOAN BANK ADVANCES

The following is a summary of FHLB advances:

	December 31,
	2014				2013
	(Dollars in thousands)
Year of maturity		Amount	Weighted average rate			Amount	Weighted average rate
2015  Overnight advances	$	140,000	0.14	%	$	—	—	%
2017  Term advance		—	—	%		50,000	4.20	%
2019  Term advance		46,194	2.05	%		—	—	%
Total advances	$	186,194	0.51	%	$	50,000	4.20	%

At December 31, 2014, Home Savings has available credit, subject to collateral requirements, with the FHLB of approximately $257.2 million. At December 31, 2013, Home Savings has available credit, subject to collateral requirements, with the FHLB of approximately $309.1 million. All advances must be secured by eligible collateral as specified by the FHLB. Accordingly, Home Savings has a blanket pledge of its one-to four-family mortgages as collateral for the advances outstanding at December 31, 2014 and 2013. The required minimum ratio of collateral to advances is 122% for one-to four-family loans. Additional changes in value can be applied to one-to four-family mortgage collateral based upon characteristics such as loan-to-value ratios and FICO scores.

On November 18, 2014, Home Savings modified the $50.0 million fixed-rate term advance with the FHLB.  The modification reduced the weighted average interest rate paid on the debt from 4.20% fixed-rate to 0.49% floating rate at December 31, 2014, and extended the weighted average maturity from 2.0 years to 5.0 years. A $3.9 million prepayment penalty was incurred by Home Savings as part of the modification which will be amortized using a level yield method over the five-year remaining term of the modified borrowing as a yield adjustment. The effective rate on the modified borrowing is 2.05%, including the impact of the prepayment penalty amortization. FHLB term advances are subject to prepayment penalties.