Note 11: Advances From Federal Home Loan Bank

3 Months Ended

Sep. 30, 2014

Notes

Note 11: Advances From Federal Home Loan Bank

NOTE 11: ADVANCES FROM FEDERAL HOME LOAN BANK

Advances from the Federal Home Loan Bank at September 30, 2014 and December 31, 2013 consisted of the following:

	September 30, 2014		December 31, 2013
		Weighted		Weighted
		Average		Average
		Interest		Interest
Due In	Amount	Rate	Amount	Rate
(In Thousands)
2014	$149,015	0.21%	$2,315	1.02%
2015	10,065	3.87	10,065	3.87
2016	70	5.06	25,070	3.81
2017	30,825	3.20	85,825	3.92
2018	81	5.06	81	5.06
2019 and thereafter	529	5.51	529	5.51
	190,585	0.91	123,885	3.85
Unamortized fair value adjustment	79		2,872
	$190,664		$126,757

Included in the Bank’s FHLB advances at September 30, 2014 and December 31, 2013, was a $10.0 million advance with a maturity date of October 26, 2015.  The interest rate on this advance is 3.86%.  The advance has a call provision that allows the Federal Home Loan Bank of Topeka to call the advance quarterly.

Included in the Bank’s FHLB advances at September 30, 2014 and December 31, 2013, was a $30.0 million advance with a maturity date of November 24, 2017.  The interest rate on this advance is 3.20%.  The advance has a call provision that allows the Federal Home Loan Bank of Des Moines to call the advance quarterly.

Included in the Bank’s FHLB advances at December 31, 2013, was a $25.0 million advance with a maturity date of December 7, 2016.  The interest rate on this advance was 3.81%.  This advance was repaid by the Bank in June 2014.

Included in the Bank’s FHLB advances at December 31, 2013, was a $30.0 million advance with a maturity date of March 29, 2017.  The interest rate on this advance was 4.07%.  This advance was repaid by the Bank in June 2014.

Included in the Bank’s FHLB advances at December 31, 2013, was a $25.0 million advance with a maturity date of June 20, 2017.  The interest rate on this advance was 4.57%.  This advance was repaid by the Bank in June 2014.

The Company prepaid $80 million of its Federal Home Loan Bank advances and $50 million of structured repurchase agreements (see Note 12) in the nine months ended September 30, 2014 as part of a strategy to utilize the Bank’s liquidity and improve net interest margin.  As a result, the Company incurred one-time prepayment penalties totaling $7.4 million, which were included in other operating expenses.