CinFed Federal Credit Union

Cinfed Federal Credit Unionin Cincinnati was looking for a tool to offset the risk inherent in fixed-rate mortgages, as well as contingent liquidity. The credit union found it with FHLB Cincinnati’s Select Payment Mortgage Matched Advance and line of credit.

“We wanted to do some borrowings to offset the risk of holding fixed rate mortgages,” said Jay Sigler, CEO of Cinfed. In addition, “Our examiners require multiple sources of contingent liquidity.

“For liquidity, the FHLB is actually a better, easier to use option than our corporate credit union. It’s imperative we have the line of credit. It’s very easy to use and it’s low cost.”

Cinfed has a community charter to serve Hamilton County, Ohio, and Boone, Campbell and Kenton counties across the Ohio River in Kentucky. Cinfed has grown to $350 million in assets and serves more than 31,000 members, providing mortgages, auto loans and member business loans as well as other traditional banking services.

Regulations have tightened for credit unions and the need for multiple sources of liquidity has increased. To help deal with this changing landscape, the FHLBank offers Cinfed an affordable way to establish both emergency funding and an outlet for mortgages through the Mortgage Purchase Program. “That’s been a very important outlet for us to be able to sell extra mortgages,” he said.

Cinfed has recently expanded into some laddered term borrowings to help fund its auto lending business. Mr. Sigler stressed the importance of having options that are both easy to use and lower cost.

“I consider this to be one of our key business relationships. The FHLB is a valued business partner,” he said.


Jay Sigler, CEO of Cinfed Federal Credit Union.