This year marks the 90th anniversary of the Federal Home Loan Bank System. We here at Peoples Bank & Trust would like to congratulate FHLB Des Moines as they enter their next decade of reliable partnerships with community banks. In honor of this milestone, I’d like to offer nine benefits we value in FHLB Des Moines, one for each decade of their anniversary.
1. FHLB Des Moines keeps community banks in their community.
FHLB Des Moines makes it easier for us to stay in our local market so we can give back to our community in the ways we are best able and are most needed. As with many community banks, Peoples Bank & Trust is often one of the first stops when a local organization or event is looking for volunteers, financial support or even a new board member. We are proud to be involved and are committed to staying connected to our communities.
2. The Bank System works exactly the way it was designed.
Our partnership with FHLB Des Moines looks a little different now than it did a couple of years ago, and it will more than likely evolve over the next few years. This is how the FHLBank system is designed — its scalable model allows for expansion and contraction based on the needs of its members.
3. Access to an unwavering availability of liquidity gives me peace of mind.
I review the FHLB Des Moines funding profile regularly. Knowing access to liquidity is a click away provides a level of security regarding lending to our customers. We would have to evaluate our lending policy if access to FHLB funding wasn’t an option.
4. We value access to the secondary market amid a very active housing market.
We actively utilize the MPF Traditional product — a unique mortgage product in which we share credit risk with FHLB Des Moines. By sharing risk, Peoples Bank receives benefits we can’t find with other investors, including better pricing and waived Loan Level Pricing Adjustments. More importantly, our customers have greater access to fixed-rate home loans at a better rate.
5. The Affordable Housing Program helps us keep families and seniors in their homes.
The cost of homeownership can sometimes be too much for families and seniors. Delayed repairs threaten the families living in the homes as well as the community’s stability. When repairs are simply too much to do on a fixed income or after other financial setbacks, FHLB Des Moines was there. The AHP grant awards are provided as part of their community investment products, at no cost to us as members, to the community housing sponsors, or to the families and seniors receiving the home improvements.
While the MPF Program provides opportunities to achieve homeownership, the Affordable Housing Program (AHP) keeps people in their homes. The Affordable Housing Program provided Peoples Bank & Trust and our community housing partners with grant dollars to support families and seniors in making much needed improvements to their homes. Peoples Bank & Trust is honored to have been a part of keeping families and seniors in their homes.
6. Peoples Bank and FHLB Des Moines are aligned in our objective to support the local community.
For many years, Peoples Bank & Trust has strongly supported the Bread for Life Food Pantry with cash donations, food drives held at the bank’s facility, and volunteer efforts. In 2019, we were awarded a $15,000 Strong Communities Award through FHLB Des Moines to ensure the availability of nutritious food in the community. Bread for Life also provides donations to the school district’s Buddy Bags Program, which gives supplemental food to kids for weekends or over extended breaks from school.
7. Phil gave me his cell phone number and answers when I call.
Jokes aside, the FHLB Des Moines team is part of my team. When I have questions or need to figure out a process, I can call and get answers quickly.
8. I believe there would be fewer community banks today without FHLB Des Moines.
Many community lenders would find it difficult to survive without access to their FHLBank. Competing for resources nationally may force smaller, local banks to merge or be acquired by larger, regional banks, removing the impact of lending, investment activity and community involvement that needs to be felt locally.
9. Take a moment and celebrate the Federal Home Loan Bank of Des Moines.
I’d like to celebrate the critical role FHLB Des Moines plays in the nation’s financial infrastructure. Without access to the Federal Home Loan Bank of Des Moines, Peoples Bank & Trust would not be as adept at customer satisfaction and service, a key advantage benefiting all FHLB members. Their ability to remain viable in all economic cycles plays a major role in our ability to take care of our customers and community.
