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ADVANCE SOLUTIONSFEDERAL HOME LOAN BANK OF DES MOINESUPDATED 11/2021
PRODUCT LISTINGFor an overview of all of our products please see our ADVANCE PRODUCT COMPARISON.Fixed-Rate Advances Overnight Short-Term and Repo Long-Term Forward Starting Fixed-Rate AmortizingSymmetrical PrepaymentAdjustable Rate Advances Prime Rate Member Option Variable Rate SOFR AdvanceStructured Advances Member Option Fixed-RateCommunity Investment AdvanceFrequently Asked Questions
CONTACTSCONTACTEMAILPHONECommunity Investment Advancecommunityinvestment@fhlbdm.com800.544.3452, ext. 2400Money Deskmoneydesk@fhlbdm.com800.544.3452, ext. 2122eAdvantagehttps://ebus.fhlbdm.comRelationship ManagersJoel Adamojadamo@fhlbdm.com515.412.2759Zachary Bassettzbassett@fhlbdm.com206.390.0229Laura Beebelbeebe@fhlbdm.com515.412.2528Lisa Colelcole@fhlbdm.com515.480.5036Phil Everittpeveritt@fhlbdm.com314.303.8002Mike Farrellmfarrell@fhlbdm.com515.443.5709Clay Hestdalenchestdalen@fhlbdm.com515.314.8040Eric Jensenejensen@fhlbdm.com515.412.2749James Leejlee@fhlbdm.com605.759.4320Brad Spearsbspears@fhlbdm.com515.412.2376Chuck Vaughncvaughn@fhlbdm.com515.419.6145Rich Weaverrweaver@fhlbdm.com573.680.7108John Biestmanjbiestman@fhlbdm.com515.412.2760Brandon Caseybcasey@fhlbdm.com515.412.2735Scott Hofershofer@fhlbdm.com515.412.2769Member Strategies
OVERNIGHT ADVANCEOvernight Advances are a source of fast, reliable overnight funding with no fees.FEATURESPRODUCT OVERVIEW No seasonal restrictions or limitsAvailabilitySame day Does not require a “clean-up” periodTerm LimitationsNone Interest charged daily on previous day’s endingbalanceMinimumRequirementNone Available until 4:30 PM (CT)Available through eAdvantage if advance amount isless than 15 millionInterest BillingDaily Fixed Daily Advance repayments available through eAdvantageRates Variable/Fixed Funds can be rolled indefinitely Rates are indications only and are subject to marketconditionsOPTIMAL YIELD CURVE (based on rate expectations)BENEFITS Immediate access to overnight funding to handledaily liquidity needs Indefinite use of funds since there is no daily pay-offrequiredVery SteepInvertedSteepeningInverted: Rates remain low for a protracted period of timeSteepening: Short-term rates will remain lowUSESBALANCE SHEETMANAGEMENTLIQUIDITYCertain restrictions apply. Please reference FHLB Des Moines Member Products Policy and Collateral Procedures.QUESTIONSPlease contact the Money Desk or yourRelationship ManagerMONEY DESK800.544.3452, ext. 2122moneydesk@fhlbdm.com
SHORT-TERM AND REPO FIXED-RATE ADVANCESShort-term and Repo Fixed-rate Advances provide you with the stability of fixed-rate funds at flexible terms.FEATURESPRODUCT OVERVIEW Fixed-rateAvailabilitySame day Fixed-termTerm LimitationsThree business days toless than one year Non-amortizing Available through eAdvantage if advance amount isless than 15 millionMinimumRequirement 100,000Interest BillingDue at maturity with term tomaturity of three business daysto six months. Due at the endof each month and at maturitywith term to maturity greaterthan six months.Rates Variable/FixedFixedBENEFITS Attractively priced source of funding Same day fundingOPTIMAL YIELD CURVE (based on rate expectations)USESBALANCE SHEETMANAGEMENTLIQUIDITYRISK MITIGATIONInvertedFlatteningCertain restrictions apply. Please reference FHLB Des Moines Member Products Policy and Collateral Procedures.QUESTIONSPlease contact the Money Desk or yourRelationship ManagerMONEY DESK800.544.3452, ext. 2122moneydesk@fhlbdm.com
LONG-TERM FIXED-RATE ADVANCELong-term Fixed-rate Advances provide you with choices to meet your institution’s long-term funding needs.FEATURESPRODUCT OVERVIEW Fixed-rateAvailabilitySame day Fixed-termTerm LimitationsOne year to 30 years Non-amortizing 100,000 Available with symmetrical prepayment feature,excluding Community Investment Advances (CIA)MinimumRequirementAvailable through eAdvantage if advance amount isless than 15 million and term to maturity less thanfive yearsInterest BillingEnd of month and at maturity Rates Variable/FixedFixed Symmetrical prepayment feature requires 1 millionminimum size and maximum term to maturity of 10years.OPTIMAL YIELD CURVE (based on rate expectations)BENEFITS Competitive pricing Same day funding (competitive pricing alternative toretail deposit markets)Very SteepSteepeningLong-term rates are expected to increaseUSESSubject to prepayment fee if repaid prior to maturity date. Certain restrictionsapply. Please reference FHLB Des Moines Member Products Policyand Collateral Procedures.QUESTIONSPlease contact the Money Desk or yourRelationship URECONSTRUCTIONBALANCE SHEETMANAGEMENTMONEY DESK800.544.3452, ext. 2122moneydesk@fhlbdm.com
FORWARD STARTING FIXED-RATE ADVANCEForward Starting Fixed-rate Advances are long-term non-amortizing advances that settle at a future member selected date.FEATURESPRODUCT OVERVIEWAvailabilityMandatory settlement and onlyat end of the forward start period.Confirm structure availability.TermsForward Starting: 6 calendar daysto 2 yearsMaturity: Advance maturity plusforward starting period cannotexceed 30 yearsSymmetrical pre-payment features are not availableon Forward Starting AdvancesMinimumRequirement 1 millionCannot be restructuredInterest BillingNone during the forward startingperiod. Monthly for all maturities.MemberAvailabilityMembers with a borrowing capacityof less than 20 percent of assetsapproved on a case-by-case basis.Rates Variable/FixedFixed Fixed-rate Fixed-term Collateralization of the advance and activity stock isnot required until the advance settlement date Not available as Community InvestmentAdvances (CIA) BENEFITS Delay taking down funding for future anticipatedneeds while locking in historically low funding coststoday Protect against rising rates without addingimmediate liquidity Use internal deposits initially to maximize spreadand use the advance to hedge duration riskUSESOPTIMAL YIELD CURVE (based on rate expectations)Very SteepBALANCE SHEETMANAGEMENTRISKMITIGATIONSteepeningSteepening: Lock in advance before rates increaseCONSTRUCTIONTermination/Prepayment fees apply before and after the advance settlement date of the Forward Starting Advance.Certain restrictions apply. Please reference FHLB Des Moines Member Products Policy and Collateral Procedures.QUESTIONSPlease contact the Money Desk or yourRelationship ManagerMONEY DESK800.544.3452, ext. 2122moneydesk@fhlbdm.com
AMORTIZING ADVANCEAmortizing Advances can be structured to match a variety of fixed-rate mortgage amortization schedules, giving youthe flexibility to customize the advance to meet your specific funding needs.FEATURESPRODUCT OVERVIEW Amortization periods up to 30 years with balloon/final maturities up to 30 yearsAvailabilitySame day Monthly, quarterly, semi-annual or annual paymentschedules based on: Level Payments* – Equal periodic principal andinterest payments over the life of the advance Level Principal Payments – Equal periodicprincipal payments over the life of the advanceTerm Limitations1 year to 30 yearsMinimumRequirement 100,000Interest BillingVariousRates Variable/FixedFixed Available with delay feature which makes proceedsavailable on day one, but commencement of therepayment of the principal can be delayed for up tofive yearsAn option to prepay without incurring a prepaymentfee following a member-selected lockout date canalso be included Available with symmetrical prepayment feature,excluding Community Investment Advances (CIA) Symmetrical prepayment feature requires 1million minimum size and maximum term tomaturity of 10 years Symmetrical prepayment features are not availableon Amortizing Advances with a delayed amortizationor prepayment (call) feature Actual principal and interest payments charged over the lifeof the advance may differ between billing periods due to theBank’s use of an Actual Day/360 Day calendar in its interestcalculations.BENEFITS Very SteepSteepeningLong-term rates are expected to increaseUSESBALANCE CIAMatch the scheduled amortization characteristics offixed feerateassetsSubject tomanyprepaymentif repaidprior to maturity date. Certain restrictionsapply. Please reference FHLB Des Moines Member Products Policyand CollateralProcedures.Managelong-term and cash flows OPTIMAL YIELD CURVE (based on rate expectations)Control the timing of the principal cash flows andthe repayment of the advance with the delay featureQUESTIONSPlease contact the Money Desk or yourRelationship ManagerCertain restrictions apply. Please reference FHLB Des Moines Member Products Policy andCollateral Procedures.MONEY DESK800.544.3452, ext. 2122moneydesk@fhlbdm.com
SYMMETRICAL PREPAYMENT FEATUREA Symmetrical Prepayment feature is unique to our Long-term Fixed-rate and Amortizing advances. This feature allows youto prepay an advance and potentially realize a gain if interest rates rise to a level greater than those that existed when theadvance was originated.FEATURESBENEFITS No cap on realized gains Protect the value of a portfolio of long-term assets ina rising rate environment Flexibility to adjust funding to match changes in yourinstitution’s interest rate risk profile Hedge a mortgage-backed security or otheroptionable securities Potentially no prepayment fee if rates rise to a certain levelfrom origination Provide stable, non-rate sensitive mortgage funding Minimal increase in rate in comparison to standard fixed-rateadvances Offset losses on securities Minimum advance size of 1 million Potentially monetize gains from market rateincreases Maximum term to maturity of 10 years The Symmetrical Prepayment feature is not availableon Community Investment Advances (CIA) or AmortizingAdvances with a delayed amortization or prepayment (call)feature.HOW IT WORKSAssume you take out a five-year, 10 million Fixed-rate Advance at 2.02 percent. You utilize the SymmetricalPrepayment feature, which in this example adds 5 basis points to your rate, totaling 2.07 percent.POTENTIAL GAIN FROM SYMMETRICAL PREPAYMENT FEATURE(if prepaid prior to maturity)MARKET VALUE0 50( 175,220) 64,100 100 150 200 250 300 297,600 525,430 747,740 964,650 1,176,290AMOUNT RETURNED TO INSTITUTIONCertain restrictions apply. Please reference FHLB Des Moines Member Products Policy and Collateral Procedures.QUESTIONSPlease contact the Money Desk or yourRelationship ManagerMONEY DESK800.544.3452, ext. 2122moneydesk@fhlbdm.com
PRIME RATE ADVANCEPrime Rate Advances provide a source of long-term funding with pricing that adjusts automatically to changing marketconditions. You can use these advances to manage repricing risk and efficiently fund numerous loan types.FEATURESPRODUCT OVERVIEW Fixed-term, adjustable-rate financingAvailabilitySame day 6-, 12-, 18- and 24- month terms, priced at a spreadto the Prime Rate*Term LimitationsSix-, 12-, 18- or 24months Advance rate resets as Prime changes, adjustingautomatically to changing market conditionsMinimumRequirement 100,000Interest BillingEnd of monthRates Variable/FixedVariableBENEFITS Fund floating-rate loans and operating lines of credit Mitigates basis risk and interest rate riskOPTIMAL YIELD CURVE (based on rate expectations)*Prime as defined by the USD-Prime-H.15 as published inFederal Reserve Statistical Release H.15.InvertedFlatteningInverted: Rates will fall and remain low for a protracted period of TURECONSTRUCTIONSubject to prepayment fee if repaid prior to maturity date. Certain restrictionsapply. Please reference FHLB Des Moines Member Products Policyand Collateral Procedures.QUESTIONSPlease contact the Money Desk or yourRelationship ManagerMONEY DESK800.544.3452, ext. 2122moneydesk@fhlbdm.com
MEMBER OPTION VARIABLE-RATE ADVANCEThe Member Option Variable-rate Advance provides members who are uncertain of their liquidity needs with the ability toprepay the advance without incurring a prepayment fee on designated rate reset dates.FEATURESPRODUCT OVERVIEW Adjusts every three months on the rate-reset dateAvailabilitySame day Prepay without a fee on scheduled dates withappropriate noticeTerm Limitations 500,000 minimum advance with additionalincrements of 100,000One year to 5 years, member optionto re-pay on rate reset date withappropriate notice 500,000 Volume threshold of 10 billion with the ratereflecting a premium above the thresholdMinimumRequirementVolume Threshold 10 billion with ratereflecting a premiumabove the thresholdInterest BillingAt reset andmaturity dateRates Variable/FixedVariable Available for immediate settlementBENEFITS Fund assets with scheduled prepayment option Take advantage of falling interest rates Provide flexibility in managing liquidityOPTIMAL YIELD CURVE (based on rate expectations)Very SteepInvertedFlatteningUSESSubject to a prepayment fee if repaid on a non-scheduled rate reset date orprior to maturity date. Certain restrictions apply. Please reference FHLB DesMoines Member Products Policy and Collateral Procedures.QUESTIONSPlease contact the Money Desk or yourRelationship ManagerAGRICULTUREBALANCE SHEETMANAGEMENTLIQUIDITYCONSTRUCTIONMONEY DESK800.544.3452, ext. 2122moneydesk@fhlbdm.com
SECURED OVERNIGHT FINANCING RATE (SOFR) ADVANCEA variable rate advance that serves as a source of liquidity and is priced based upon the prevailing SOFRreference rate as published by the Federal Reserve Bank of New York.FEATURESPRODUCT OVERVIEW Interest on SOFR advances is calculated based onthe average SOFR observed for the relevant InterestPeriod plus a spreadMinimum AdvanceSize 100,000 The rate on SOFR advances will reset each calendarday in the relevant Interest PeriodTerm to Maturity1 month to 10 years For any Rate Reset Date that is not a U.S.Government Securities Business Day, the ReferenceRate for such Rate Reset Date will be the SOFRpublished on the first U.S. Government SecuritiesBusiness Day immediately preceding such RateReset DateInterest BillingMonthly or quarterlyand at maturityDaycountConventionActual/360 daysCommunityInvestment pricingAvailableForward Startingand SymmetricalPrepaymentFeaturesNot Available The Rate Cut-Off Date shall be the second U.S.Government Securities Business Day prior to theInterest Payment Date in respect of the relevantInterest Period. During a Rate Cut-Off Period, theReference Rate for each Rate Reset Date during theRate Cut-Off Period will be the SOFR in effect withrespect to the Rate Reset Date that coincides withthe Rate Cut-Off Date Interest is paid monthly or quarterly with principaldue at maturity SOFR advances originated prior to November 8, 2021may not be prepaid prior to maturity SOFR advances originated on or after November 8,2021 may be prepaid prior to maturity subject to aprepayment feeBENEFITS Variable rate advance product which can help withthe LIBOR transition Source of liquidity at rates comparable to othershort-term liabilities Means of funding other indexed rate assetsUSESCIASubject to prepayment fee if repaid prior to maturity date. Certain restrictions apply. Please reference FHLB Des Moines Member Products Policy and Collateral Procedures.QUESTIONSPlease contact the Money Desk or yourRelationship ManagerMONEY DESK800.544.3452, ext. 2122moneydesk@fhlbdm.com
MEMBER OPTION FIXED-RATE ADVANCEThe Member Option Fixed-rate Advance can help you mitigate risk and manage liquidity.FEATURESPRODUCT OVERVIEW Advance maturities of one year to 10 yearsAvailabilitySame day 1 million minimum advance with additionalincrements of 100,000Term Limitations Can be prepaid on scheduled dates without a feewith five business days’ noticeOne year to 10 years, member optionto repay on scheduled dates with afive business day prior noticeMinimumRequirement 1 millionInterest BillingEnd of monthRates Variable/FixedFixed Minimum lockout period of 3 month Advance proceeds are available for same daysettlement European or Bermudan call optionsBENEFITSOPTIMAL YIELD CURVE (based on rate expectations) Fund assets with prepayment options Advance can help manage interest rate andprepayment risk Fund a fixed-rate mortgage portfolio or seasonalneedsVery Steep Provide liquidity management or investmentportfolio managementLong-term rates are expected to CE SHEETMANAGEMENTRISKMITIGATIONCertain restrictions apply. Please reference FHLB Des Moines Member ProductsPolicy and Collateral Procedures.QUESTIONSPlease contact the Money Desk or yourRelationship ManagerMONEY DESK800.544.3452, ext. 2122moneydesk@fhlbdm.com
COMMUNITY INVESTMENT ADVANCECommunity Investment Advances (CIA) are priced below corresponding regular advance rates and promote qualifying economicdevelopment initiatives in FHLB Des Moines member communities. There are two types of Community Investment Advances –Commercial Lending and Residential Lending.COMMERCIAL LENDINGRESIDENTIAL LENDINGA Commercial Lending Advance supports loans originatedfor commercial, industrial, manufacturing, social service,public facilities projects and activities, and public and privateinfrastructure projects, such as roads, utilities and sewers.A Residential Lending Advance supports loans originatedto purchase, construct, rehabilitate or refinance affordableowner-occupied and rental housing.ELIGIBILITY CRITERIA Eligible projects include commercial loans in target areas,loans to small business and loans to businesses andprojects that support targeted incomes. Eligible loans wouldinclude direct loans, purchase of a participation interest ina loan or purchase of municipal bonds where the projectfinanced by the bond is a CIA eligible project. Loans may benew originations or refinance of existing loans.Minimum borrowing amount 25,000Advances from one to 30 yearsBENEFITS Promotes community economic developmentSupports small businesses and farmsHelps businesses retain and create jobs in the communityReduces interest rate risk of long-term advancesELIGIBILITY CRITERIA Advances are available for residential real estate loansmade to low- and moderate-income owner-occupiedhouseholds or can be used to support affordable rentalprojects.Loans may qualify in targeted areas. Loans originated intargeted areas qualify regardless of the income of thehouseholds served.Advances may be taken to support direct loans, purchasedloan participations and the purchase of qualified mortgagerevenue bonds or mortgagebacked securities. Loans may benew originations or refinance of existing loans.Minimum borrowing amount of 100,000Advances from one to 30 yearsBENEFITS Provides affordable housing and promotes economicdevelopmentCan be used in targeted areas regardless of the income ofthe borrowerReduces interest rate risk of long-term advancesLoans used to qualify for CIA must be originated within the three months prior to the date of an advance, or a member may take down an advance onloans to be closed. If the latter, a member must originate qualifying loans within 12 months of the date of the advance.QUESTIONSPlease contact the Money Desk or yourRelationship ManagerMONEY DESK800.544.3452, ext. 2122moneydesk@fhlbdm.com
FREQUENTLY ASKED QUESTIONSWHAT DO I NEED TO HAVE IN PLACE IN ORDER TO BORROW? Complete and submit all agreements and forms. Adequate collateral must be pledged and credit capacity maintained prior to any advance request. All advances require activity stock. Activity stock requirement on advances is currently 4.00 percent of advance proceeds and is debitedfrom your Demand Deposit Account (DDA) at the end of the business day. Depending on the type of advance, you have options when making a request: Those individuals identified on your Authorized Personnel Form as advance contacts can request an advance through the MoneyDesk by calling 800.544.3452, ext. 2122. Advances of any type, term or amount can be requested through the Money Desk. Through eAdvantage, authorized users may request overnight and term advances up to five years in amounts less than 15million. Your eAdvantage Administrators must set-up individuals to request an advance through eAdvantage.Advance proceeds will be deposited to your DDA. If a Delivery of Advance Proceeds Form has been submitted, advance proceeds will bewired directly to the account you’ve identified.WHERE CAN I ACCESS ADVANCE RATES? Less than 15 million: visit members.fhlbdm.com under the Advances section. Greater than 15 million: live market pricing available through the Money Desk by calling 800.544.3452, ext. 2122.HOW IS BILLING HANDLED? Principal payments, when applicable, are collected on the last business day of the month or at maturity. Interest payments are collected on the last business day of the month, at maturity or on advance rate reset dates. Principal and interest for maturing advances are memo posted in eAdvantage the previous business evening, but charged on themorning of the maturity date. For advances not maturing, interest payments are charged to the member’s primary Demand DepositAccount at end of day.WHAT IS THE METHOD OF INTEREST ACCRUAL? Advance interest is calculated on an actual/360 day basis.WHAT IS A UNIQUE FUNDING OPPORTUNITY? At times, the Bank may offer discounted rate specials. Unique Funding Opportunities are available for limited time and on specificadvances and terms.QUESTIONSPlease contact the Money Desk or yourRelationship ManagerMONEY DESK800.544.3452, ext. 2122moneydesk@fhlbdm.com
FREQUENTLY ASKED QUESTIONSCAN I PREPAY AN ADVANCE? Yes, advance prepayment request forms must be submitted to the Money Desk prior to 2:00 PM (CT). There is a two-business-daysettlement on prepaid advances. Advances must be prepaid in full, no partial prepayments with the exception of the Amortizing Advances with lockout. Most advances are subject to a prepayment fee if repaid prior to the maturity date. Prepayment fee indications are available for mostadvances through eAdvantage.WHAT ARE THE BANK’S HOURS OF OPERATION? For current hours of operations and customer service, visit www.fhlbdm.com/contact-us/hours-of-operation. To contact the MoneyDesk, Customer Service or other FHLB Des Moines contacts, visit www.fhlbdm.com/contact-us/.QUESTIONSPlease contact the Money Desk or yourRelationship ManagerMONEY DESK800.544.3452, ext. 2122moneydesk@fhlbdm.com
CONTACTS CONTACT EMAIL PHONE Community Investment Advance communityinvestment@fhlbdm.com 800.544.3452, ext. 2400 Money Desk moneydesk@fhlbdm.com 800.544.3452, ext. 2122 eAdvantage https://ebus.fhlbdm.com Relationship Managers Joel Adamo jadamo@fhlbdm.com 515.412.2759 Zachary Bassett zbassett@fhlbdm.com 206.390.0229 Laura Beebe lbeebe@fhlbdm.com 515.412.2528 Lisa Cole lcole@fhlbdm.com 515.480.5036
