11.FEDERAL HOME LOAN BANK ADVANCES

 

At December 31, 2016 and 2015, FHLB advances were as follows:

 

 *On a quarterly basis, the FHLB has the right to require payoff of these advances by the Bank at no penalty.

 

Each FHLB advance is payable at its maturity date, with a prepayment penalty for fixed rate advances that are paid off earlier than maturity.  The Company incurred an $846,000 prepayment penalty on the payoff of $50 million in FHLB advances during 2016, with no similar penalty incurred in 2015 and 2014.

 

FHLB advances are collateralized by a blanket pledge of eligible real estate loans. At December 31, 2016 and 2015, Republic had available borrowing capacity of $378 million and $567 million, respectively, from the FHLB. In addition to its borrowing capacity with the FHLB, Republic also had unsecured lines of credit totaling $150 million and $170 million available through various other financial institutions as of December 31, 2016 and 2015.

 

Aggregate future principal payments on FHLB advances based on contractual maturity and the weighted average cost of such advances are detailed below:

 

NA - Not applicable

Due to their nature, the Bank considers average balance information more meaningful than period end balances for its overnight borrowings from the FHLB. Information regarding short-term overnight FHLB advances follows:

 

 

 

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