Credit products to help you manage your balance sheet and grow your institution
We provide our member financial institutions with same day access to liquidity and term finance. We make fully secured loans, called Advances, in maturities from one day to 30 years with flexible terms and at competitive interest rates.
Depository institutions typically rely on attracting customer deposits in their local market to fund their balance sheet. At times, it can be difficult to attract the desired amount and maturity of deposits it needs. FHLB Advances can be an effective and economic way to help members in this effort.
Advances are available in a variety of structures and terms, allowing members to tailor its mix of liabilities to address its liquidity and asset/liability management strategies. Applying for an Advance is fast and easy. Funds are deposited directly into the member’s FHLB demand account.
Our members collateralize their Advance activity primarily with residential mortgage loans and government and agency securities. But, we also allow certain other assets to be pledged as collateral. Members must hold FHLB stock as a percent of its Advance balances as prescribed in our Capital Plan.
In addition to Advances, our members have access to the FHLB's highly rated Letter of Credit (LOC) to enhance their liquidity position. Members frequently use our LOC program to collateralize public unit deposits, freeing up securities for other purposes. LOCs are fee based, collateralized the same way as Advances, but there is no capital stock requirement.