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  • Comment Detail

  • Date: 03/09/23
    First Name: Keith
    Last Name: Wade
    Email: kwade@fscb.com
    Organization Type: other
    Organization: First State Community Bank

  • Comment

    First State Community Bank has been a member of the Federal Home Loan Bank of Des Moines for many years. We have utilized the various advance options to fund the growth of our residential loan portfolio. The ability to pledge loans and have the credit line available to support the bank's liquidity position is viable to the successful operation of the bank. We are a community bank, and hold a large amount of public fund deposits which require the pledging of assets. We currently use the available letters of credit as a pledging tool for these deposits.
    We currently have 2 non profit customers who have been awarded grants to help fund their projects. One is a senior living unit, the other is an affordable housing agency. The services offered by the FHLB's are a very important part of the liquidity plan for First State Community Bank.
    It would be a very difficult task to be required to track the flow of the funds obtained through the advance program. Many times, the funds are utilized for funding multiple projects over a period of time.
    Expansion of the membership could bring a much higher risk line of business to the FHLB, putting it at a higher risk for losses.
    I appreciate the opportunity to provide my thoughts on the benefits of the FHLB of Des Moines.
    thank you.
    Keith Wade