Skip to main content

  • Comment Detail

  • Date: 10/29/22
    First Name: Scott
    Last Name: Peters
    Email: scott.peters@scu.org
    Organization Type: other
    Organization: Scott Credit Union

  • Comment

    The FHLB is a valuable partner for Scott Credit Union (SCU) and we maintain a membership with them for a number of reasons. Their mortgage and liquidity programs are key to our balance sheet management strategy and we’ve also used our FHLB membership to obtain funding for causes in our community.

    The MPF125 program allows SCU to originate mortgages and sell them to the FHLB at favorable terms. The ability to sell long-term mortgages allows SCU to manage balance sheet risk while providing long-term housing loans to our members.
    The FHLB Advance Program helps SCU to manage liquidity by borrowing at rates that are favorable to other sources. The advances allow SCU to continue to provide funding for loans in the communities we serve.

    In the early stages of the COVID pandemic, SCU participated in the Advance program and used those funds to assist struggling community groups in our market.

    As shown above, the FHLB provides significant value to partner financial institutions and the communities they serve.
    Regards,

    Scott Peters
    Chief Financial Officer
    Scott Credit Union