Regular Fixed Rate Advance

Fixed rate liabilities available in numerous maturities:

  • Facilitates balance sheet restructuring and reduces interest rate risk exposure by lengthening liabilities
  • A competitive substitute for deposits, assisting in the stabilization or reduction of interest rate risk
  • Useful for financing mortgage portfolios (via strips of differing maturities)

 

Maturity
7 months to 20 years
Rate
Fixed rate for entire term of maturity
Accrual Basis
Actual / actual day basis
Interest is Paid
Monthly
Principal is Paid
At maturity for non-amortizing advances; with straight-line amortizing fixed rate advances, regular principal payments are made at the specified intervals (i.e., monthly, quarterly, semi-annually, etc.); an ending period partial balloon payment is also optional
Principal Prepayment Policy
Prepayable subject to a prepayment fee (equal to the present value of 100% of the lost cash flow to the Bank, given the difference between the contract rate of the advance and the current yield on FHLB securities of the same remaining maturity—for amortizing advances, the difference between the current yield on FHLB securities of the same remaining effective weighted avg. maturity discounted at the current yield)
Submission of Application
A Regular Fixed Rate Advance application is required for each borrowing.

To learn more about our Advance products, contact Jeff Berryman or Lisa Wishart at 800-828-4191.

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