ADVANCES FROM FEDERAL HOME LOAN BANK OF SEATTLE

12 Months Ended

Dec. 31, 2013

Advances from Federal Home Loan Banks [Abstract]

ADVANCES FROM FEDERAL HOME LOAN BANK OF SEATTLE

ADVANCES FROM FEDERAL HOME LOAN BANK OF SEATTLE

Utilizing a blanket pledge, qualifying loans receivable at December 31, 2013 and 2012, were pledged as security for FHLB borrowings and there were no securities pledged as collateral as of December 31, 2013 or 2012.  At December 31, 2013 and 2012, FHLB advances were scheduled to mature as follows (dollars in thousands):

	December 31
	2013				2012
	Amount		Weighted Average Rate		Amount		Weighted Average Rate
Maturing in one year or less	$	27,000	0.23	%	$	10,000	2.38	%
Maturing after one year through three years	—		—		—		—
Maturing after three years through five years	—		—		—		—
Maturing after five years	203		5.94		210		5.94
Total FHLB advances, at par	27,203		0.27		10,210		2.45
Fair value adjustment	47				94
Total FHLB advances, carried at fair value	$	27,250			$	10,304

The maximum, average outstanding and year-end balances (excluding fair value adjustments) and average interest rates on advances from the FHLB were as follows at or for the years ended December 31, 2013, 2012 and 2011 (dollars in thousands):

	At or for the Years Ended December 31
	2013			2012			2011
Maximum outstanding at any month end, at par	$	60,377		$	10,216		$	36,522
Average outstanding, at par	18,935			10,215			14,699
Year-end outstanding, at par	27,203			10,210			10,217
Weighted average interest rates:
Annual	0.52		%	2.49		%	2.52		%
End of period	0.27		%	2.45		%	2.45		%
Interest expense during the period	$	99		$	254		$	370

As of December 31, 2013, 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, 2013, the maximum total FHLB credit line was $767 million and $26 million for Banner Bank and Islanders Bank, respectively.