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Note 11: Advances From Federal Home Loan Bank: Federal Home Loan Bank, Advances (Policies)
3 Months Ended
Sep. 30, 2015
Policies  
Federal Home Loan Bank, Advances

Included in the Bank’s FHLBank advances at September 30, 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 was 3.86%.

 

Also included in the Bank’s FHLBank advances at September 30, 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 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 quarterly period ended June 30, 2014.