FEDERAL HOME LOAN BANK ADVANCES

12 Months Ended

Dec. 31, 2017

11.	FEDERAL HOME LOAN BANK ADVANCES

The following is a summary of FHLB advances:

	December 31,
	2017					2016
	(Dollars in thousands)
			Weighted					Weighted
Year of maturity	Amount		average rate			Amount		average rate
2017	$	—		0.00	%	$	343,000		0.64	%
2018		308,000		1.42	%		—		0.00	%
2019		48,536		3.26	%		47,756		2.73	%
	$	356,536		1.67	%	$	390,756		0.90	%

At December 31, 2017, Home Savings has remaining available credit, subject to collateral requirements, with the FHLB of approximately $256.8 million. At December 31, 2016, Home Savings had remaining available credit, subject to collateral requirements, with the FHLB of approximately $172.1 million. All advances must be secured by eligible collateral as specified by the FHLB. Accordingly, Home Savings had a blanket pledge of its one-to four-family mortgages as collateral for the advances outstanding at December 31, 2017 and 2016. The required minimum ratio of collateral to advances is 120% 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 a $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 a floating rate, 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 floating rate was 1.70% at December 31, 2017 and 1.16% at December 31, 2016. The effective rate on the modified borrowing was 3.26% at December 31, 2017 and 2.73% at December 31, 2016, including the impact of the prepayment penalty amortization. FHLB term advances are subject to prepayment penalties.