Note 11: Advances From Federal Home Loan Bank

3 Months Ended

Mar. 31, 2015

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 March 31, 2015 and December 31, 2014 consisted of the following:

	March 31, 2015		December 31, 2014
		Weighted		Weighted
		Average		Average
		Interest		Interest
Due In	Amount	Rate	Amount	Rate
(In Thousands)
2015	$61,049	0.84%	$240,065	0.41%
2016	70	5.14	70	5.14
2017	30,826	3.26	30,826	3.26
2018	81	5.14	81	5.14
2019	28	5.14	28	5.14
2020 and thereafter	500	5.54	500	5.54
	92,554	1.68	271,570	0.75
Unamortized fair value adjustment	64		71
	$92,618		$271,641

Included in the Bank’s FHLB advances at March 31, 2015 and December 31, 2014, 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 March 31, 2015 and December 31, 2014, 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.

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) 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 beginning in the period ending June 30, 2014.