Advances From Federal Home Loan Bank Of Seattle

12 Months Ended

Dec. 31, 2011

Advances From Federal Home Loan Bank Of Seattle

Advances From Federal Home Loan Bank Of Seattle

Note 10:  ADVANCES FROM FEDERAL HOME LOAN BANK OF SEATTLE

Utilizing a blanket pledge, qualifying loans receivable at December 31, 2011 were pledged as security for FHLB borrowings and there were no securities pledged as collateral as of December 31, 2001 or 2010.  At December 31, 2011 and 2010, FHLB advances were scheduled to mature as follows (dollars in thousands):

	December 31
	2011				2010
		Amount	Weighted Average Rate			Amount	Weighted Average Rate
Due in one year or less	$	--	--	%	$	32,800	2.73	%
Due after one year through three years		10,000	2.38			10,000	2.38
Due after three years through five years		--	--			--	--
Due after five years		217	5.94			223	5.94
Total FHLB advances, at par		10,217	2.45			43,023	2.67
Fair value adjustment		316				500
Total FHLB advances, carried at          fair value	$	10,533			$	43,523

The maximum, average outstanding and year-end balances (excluding fair value adjustments) and average interest rates on advances from the FHLB were as follows for the years ended December 31, 2011, 2010 and 2009 (dollars in thousands):

	Years Ended December 31
		2011			2010			2009
Maximum outstanding at any month end, at par	$	36,522		$	66,028		$	254,030
Average outstanding, at par		14,699			51,411			102,210
Year-end outstanding, at par		10,217			43,023			188,528
Weighted average interest rates:
Annual		2.52	%		2.56	%		2.57	%
End of period		2.45	%		2.67	%		1.18	%
Interest expense during the period	$	370		$	1,318		$	2,627

As of December 31, 2011, Banner Bank has established a borrowing line with the FHLB to borrow up to 35% of its total assets, contingent on having sufficient qualifying collateral and ownership of FHLB stock.  Islanders Bank has a similar line of credit, although it may borrow up to 25% of its total assets, also contingent on collateral and FHLB stock.  At December 31, 2011, the maximum total FHLB credit line was $830 million and $25 million for Banner Bank and Islanders Bank, respectively.