FEDERAL HOME LOAN BANK ADVANCES

12 Months Ended

Dec. 31, 2013

FEDERAL HOME LOAN BANK ADVANCES

FEDERAL HOME LOAN BANK ADVANCES

12. FEDERAL HOME LOAN BANK ADVANCES

At December 31, 2013 and 2012, FHLB advances were as follows:

December 31, (in thousands)	2013		2012
Fixed interest rate advances with a weighted average interest rate of 2.03% due through 2023	$	505,000	$	442,600
Putable fixed interest rate advances with a weighted average interest rate of 4.39% due through 2017(1)	100,000		100,000
Total FHLB advances	$	605,000	$	542,600

(1) - Represents putable advances with the FHLB. These advances have original fixed rate periods ranging from one to five years with original maturities ranging from three to ten years if not put back to the Bank earlier by the FHLB. At the end of their respective fixed rate periods and on a quarterly basis thereafter, the FHLB has the right to require payoff of the advances by the Bank at no penalty. Based on market conditions at this time, the Bank does not believe that any of its putable advances are likely to be “put back” to the Bank in the short-term by the FHLB.

Each FHLB advance is payable at its maturity date, with a prepayment penalty for fixed rate advances that are paid off earlier than maturity. FHLB advances are collateralized by a blanket pledge of eligible real estate loans. At December 31, 2013, Republic had available collateral to borrow an additional $282 million from the FHLB. In addition to its borrowing line with the FHLB, Republic also had unsecured lines of credit totaling $166 million available through various other financial institutions.

As discussed under Footnote 2 “2012 FDIC-Assisted Acquisitions,” RB&T assumed $3 million in FHLB advances in connection with the FCB acquisition. During the third quarter of 2012, RB&T prepaid these advances and incurred an early termination penalty of $63,000, which was equivalent to the fair value adjustment recorded in connection with the initial day-one bargain purchase gain.

During the first quarter of 2012, RB&T prepaid $81 million in FHLB advances. These advances had a weighted average cost of 3.56% and were all scheduled to mature between October 2012 and May 2013. The Bank incurred a $2.4 million early termination penalty in connection with this transaction.

Aggregate future principal payments on FHLB advances, based on contractual maturity dates are detailed below:

Year	(in thousands)		Weighted Average Rate
2014	$	188,000	2.69	%
2015	10,000		2.48	%
2016	82,000		1.74	%
2017	145,000		3.44	%
2018	90,000		1.51	%
Thereafter	90,000		1.75	%
Total	$	605,000	2.42	%

The following table illustrates real estate loans pledged to collateralize advances and letters of credit with the FHLB:

December 31, (in thousands)	2013		2012
First lien, single family residential real estate	$	1,082,624	$	1,053,946
Home equity lines of credit	105,957		116,043
Multi-family commercial real estate	13,124		7,017