Skip to main content

  • Comment Detail

  • Date: 02/23/23
    First Name: Dean
    Last Name: McCleary
    Email: Dmccleary@americanfederal.net
    Organization Type: other
    Organization: American Federal Bank

  • Comment

    We are a supporter of the FHLB system. We utilize the FHLB as our primary source of liquidity. Specifically we borrow overnight funds to help support the Ag Lending Cycle. Our Ag borrowers have a growing season from April to November each year and the farm borrowing needs does not line up with our depositor ebbs and flows, so we utilize that short term borrowing to help us fund the growing season. The FHLB is a key way that we manage our liquidity risk, but also can help us manage our asset liability risk as we have taken down term advances also to help balance activity on the lending side from and interest rate risk standpoint.
    The FHLB is a source of strength for our institution. They give us access to affordable funding in a very efficient process that allows us to move funds on a daily basis to balance our institutions funding needs. Without the FHLB we would have much greater risk and a much less efficient way to manage our balance sheet and funding needs.