ADVANCES FROM FEDERAL HOME LOAN BANK OF SEATTLE

12 Months Ended

Dec. 31, 2012

Advances from Federal Home Loan Banks [Abstract]

ADVANCES FROM FEDERAL HOME LOAN BANK OF SEATTLE

Utilizing a blanket pledge, qualifying loans receivable at December 31, 2012 were pledged as security for FHLB borrowings and there were no securities pledged as collateral as of December 31, 2012 or 2011.  At December 31, 2012 and 2011, FHLB advances were scheduled to mature as follows (dollars in thousands):

	December 31
	2012				2011
	Amount		Weighted Average Rate		Amount		Weighted Average Rate
Due in one year or less	$	10,000	2.38	%	$	—	—	%
Due after one year through three years	—		—		10,000		2.38
Due after three years through five years	—		—		—		—
Due after five years	210		5.94		217		5.94
Total FHLB advances, at par	10,210		2.45		10,217		2.45
Fair value adjustment	94				316
Total FHLB advances, carried at fair value	$	10,304			$	10,533

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, 2012, 2011 and 2010 (dollars in thousands):

	Years Ended December 31
	2012			2011			2010
Maximum outstanding at any month end, at par	$	10,216		$	36,522		$	66,028
Average outstanding, at par	10,215			14,699			51,411
Year-end outstanding, at par	10,210			10,217			43,023
Weighted average interest rates:
Annual	2.49		%	2.52		%	2.56		%
End of period	2.45		%	2.45		%	2.67		%
Interest expense during the period	$	254		$	370		$	1,318

As of December 31, 2012, 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, 2012, the maximum total FHLB credit line was $889 million and $26 million for Banner Bank and Islanders Bank, respectively.