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Comment

The FHLB of Topeka in its current structure has been and continues to be integral to our bank’s operations. Our focus on real estate finance perfectly aligns with the FHLBank’s mission of promoting housing and I cannot imagine what our bank or our communities would look like were it not for their support. In the last ten years, we have grown from $65 million in assets to $350 million in assets. The products and tools the FHLBank offers have enabled us to realize this significant growth and financial success, while doing so in a safe and sound manner.

We have utilized just over $91 million in advances over our bank’s 25-years in business and these have served multiple purposes for us. They provided us crucial access to the liquidity that has helped fund the significant growth we have experienced. The use of fixed-rate amortizing advances has allowed us to price loans more competitively. And they have helped us mitigate interest rate risk exposure and protect ourselves in rising rate environments, such as the one we find ourselves in now. When our regulators review our contingency funding plan they see the FHLBank and know we are working with a stable and reliable partner.

The Mortgage Partnership Finance program has been a significant part of why we have experienced the growth we have. We began working with the program in 2010 and have originated over 3,300 loans in that time. Today we service over $420 million in single family loans, exclusive of our $350 million in assets. Customers in our communities have greatly benefited from a competitive fixed-rate financing option and they place a high value on our local servicing.

The FHLBank is also a great community partner. In five years working with the Homeownership Set-Aside Program, we have processed 91 first-time homebuyer grants totaling $484,441. These have been a huge benefit to new buyers, particularly given the substantial increases in home prices. We were also able to help an affordable housing project in our community secure a grant through the FHLBank’s Affordable Housing Program to make much needed property renovations. Lastly, a not-for-profit in our community received extra funding for needs identified by school social workers through the 500 For Good program.

The positive impact the FHLBank has goes beyond what is quantifiable. The professionals we work with not only understand our bank, but they are uniquely in tune with our local economy and the district as a whole. This knowledge makes them a valuable resource for our management team. They understand what is going on in our local economy because they live here, and they see it first-hand. All of this makes them a “sounding board” we know we can trust. The FHLBank of Topeka is a valuable resource and a crucial partner for our bank.