Secured Overnight Financing Rate (SOFR) Advance

An advance that serves as a source of liquidity and is priced according to the prevailing SOFR reference rate as published by the Federal Reserve Bank of New York

  • Can be used to replenish liquidity to targeted levels in the event of savings deposit withdrawals
  • Serves as an ongoing source of liquidity at rates comparable to or below other short-term liabilities
  • A means of funding other indexed rate assets (e.g., Home Equity loans) to achieve spread and potential arbitrage
  • See our Credit Policy Manual for other important definitions applicable to SOFR Advances
Maturity
Up to 120 months
Rate
SOFR Advances will reset each Business Day, except that in respect of any interest period, the last two (2) Business Days of such interest period shall be a deemed a “suspension period”. During a suspension period, the index for each day during that suspension period will be the index value for the reset date immediately after the first day of such suspension period. The suspension period may vary based on funding availability and market condition. For Saturday, Sunday and other non-U.S. Government Securities business days, the rate in effect will be the rate posted on the preceding U.S. Government Securities business day.
Accrual Basis
Actual / 360 day basis
Interest is Paid
Quarterly
Principal is Paid
At maturity
Principal Prepayment Policy
SOFR Advances generally are not prepayable prior to their stated maturity. The FHLB may offer programs with varying repayment structures that may include non-prepayment periods or “lock-outs.” In cases where a prepayment of a “locked-out” Advance is desired, the FHLB may allow a prepayment with applicable fees that would make the FHLB economically indifferent to such a prepayment.
Submission of Application
A SOFR Advance Application is required for each borrowing.

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

Contact us to learn more