BEWARE THE PERFECT STORM - FHLBank Topeka

MORE ON CENTRAL NATIONAL BANK
MORE ON CENTRAL NATIONAL BANK
Central National Bank has been an FHLBank
member since 1996. With more than $800
million in assets, CNB is a cornerstone
to 20 small- to mid-sized communities
throughout Kansas, and also has a branch in
Superior, Neb.
FHLBANK MEMBERSHIP
VALUE
Ed Meekins, Central National’s EVP and COO
recalled, “When we first joined FHLBank
Topeka in 1996, we joined for two reasons.
One was to have a backup source of liquidity
beyond our traditional relationships with
correspondent banks to meet our short-term
borrowing needs. The second was for the
ability to match fund long-term loans.”
Now, 11 years later, CNB’s line of credit with
FHLBank Topeka has become much more
important as its balance sheet has grown
and liquidity volatility has come into play.
“We went through a period in September
where we went from $10 million in excess
funds available for overnight investing to
$30 million in overnight borrowing in the
course of two weeks,” said Jim Van Slyke,
CNB’s CFO. “The largest source of borrowing
we tapped into at the time was our
FHLBank line of credit. It’s very nice to have
that available without having to pledge
securities as collateral. And to be able to tap
into that with a simple phone call!”
While CNB’s primary value in its membership
comes in the form of its line of credit
with FHLBank, Jim also takes FHLBank’s
stock into consideration. “The dividends
we receive from our stock investment with
FHLBank Topeka make it a good asset to
have,” he said. “The returns that we’re getting
on our FHLBank stock compares very favorably
to our other investments right now, so
we see it as an extra bonus.”
ON COMMUNITY
As participating financial institutions in the
Mortgage Partnership Finance Program;
frequent users of the Rural First-time
Homebuyer and Targeted Ownership
programs as illustrated in the previous
pages and participation in the Community
Housing Program, CNB clearly understands
how to meet the needs of their mortgage
customers. A recent $25,000 Joint
Opportunities for Success grant for a loan
pool in Minneapolis, Kan. is also bolstering
that community’s economic growth.
L to R: Ed Meekins, CNB EVP; Terry Wright, FHLBank account manager; and Jim Van Slyke, CNB CFO, in the
lobby of Central National Bank’s facility in Topeka.
“THE RETURNS
WE’RE GETTING
ON OUR FHLBANK
STOCK COMPARE
FAVORABLY TO OUR
OTHER INVEST-
MENTS RIGHT NOW,
SO WE SEE IT AS AN
EXTRA BONUS.”
- JIM VAN SLYKE, CFO
CENTRAL NATIONAL
BANK
FHLBANK PRODUCTS
AND SERVICES USED:
Advances
Line of Credit
Overnight Deposits
Safekeeping Services
MPF® Program
Rural First-time Homebuyer
Program
Targeted Ownership Program
Community Housing Program
Joint Opportunities for Building
Success grant
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FHLBank Focus | Winter 2007