Pub. 6 2018 Issue 2

9 The Community Banker THE FEDERALHOME LOANBANKOF DESMOINES By Eric Jensen, Relationship Manager. Featured Associate Member T he Federal Home Loan Bank of Des Moines (FHLB Des Moines) is proud to serve as a strategic partner with 51 financial institutions in Montana. With over eighty years of commitment to our members and experience operating through various economic climates, FHLB Des Moines steadily remains a reliable source of funding to our more than 1,400 member financial institu- tions across 13 states. A Brief History Years of unprecedented economic hard- ship and a staggering decline in homeown- ership during the Great Depression led to the creation of the Federal Home Loan Bank Act, signed by President Herbert Hoover in 1932. Since its establishment, FHLB Des Moines continues to operate under President Hoover’s core mission of providing financial solutions and products to meet the housing, economic and development needs of our members and communities in our district. FHLB Des Moines is one of 11 region- al banks in the Federal Home Loan Bank System (FHLBanks) and, like all FHLBanks, is a member-owned cooperative operating independently with its own board of directors to ensure that the needs of all members are represented. Montana is represented by two directors. Joe Kesler, Director of First Mon- tana Bank in Missoula, Montana, was recently elected to serve as a member director and Mike McGowan, chair and CEO of Daniel Capital Man- agement serves as an independent director. Financial Products Designed toMeet the Needs of Our Members As a member-owned cooperative, FHLB Des Moines offers financial products for members of varying size, liquidity needs or depositor base. Most frequently, member institutions turn to FHLB Des Moines for a variety of cost-effective funding products to assist with managing liquidity and interest rate needs. Providing both short-term and long-term funding solutions, FHLB Des Moines is a committed, reliable source of liquidity for its members. The Mortgage Partnership Finance® pro- gram provides secondary market opportuni- ties through a variety of products beneficial to members. The FHLB Des Moines Mortgage Product Group works with members as a strategic partner to expand their mortgage business and strengthen their relationship with borrowers. With the launch of mpf. fhlbdm.com , a robust, online resource and a supportive mortgage product team, engag- ing in the secondary mortgage market has never been easier. FHLB Des Moines has seen growing de- mand for our Letter of Credit (LOC) products. The growing popularity of Standby LOC’s can easily be attributed to the many benefits they provide over pledging securities to secure public unit deposits. With less monitoring required and no cost to the public unit, LOC’s are a secure and safe alternative to diversify collateral for public funds. Strategic Partner As markets expand or contract and interest rates rise or fall, our ability to serve members adapts along with the changing environment. The FHLB Des Moines Member Solutions and Strategies Team, a compli- mentary, in-house consulting resource is available to help members identify funding ideas and strategies that work best for indi- vidual member institutions’ needs and goals. Community Focus FHLB Des Moines understands that every community serves a broad range of local needs and unique challenges. In addition to being a source for financial products, 10 per- cent of our annual net income is allocated to- wards affordable housing programs. Through 2017, FHLB Des Moines has provided $26.4 million* in grant funds for Montana commu- nities. With over 2,536 homes impacted from our Competitive Affordable Housing Program and 2,010 homes purchased using our down payment products, we are proud to have a helping hand in growing local Montana communities. Strengthened Support FHLB Des Moines actively participates in conversation with our legislative decision makers to ensure we can continue to execute on our mission and serve as an advocate for members. The FHLB Des Moines government relations team educates members of Congress and their staff on the importance of the FHL- Banks in providing community lenders with access to safe, reliable liquidity, as well as their role as a source of affordable housing funds. The lending environment and economic landscape is ever-evolving and FHLB Des Moines will continue to evolve alongside our members. Whether you know of an upcoming liquidity need or want to look at ways your institution could protect your balance sheet against rising interest rates, the team at FHLB Des Moines wants to help our Montana mem- bers succeed and build strong communities. Montana financial institutions should contact Eric Jensen, Relationship Manager, at ejensen@fhlbdm.com or 206.340.2489.