Product Brochures - Federal Home Loan Bank of Des Moines

Overnight AdvanceThe Overnight Advance is a source of fast, reliable overnight funding with no fees.PRODUCTOverviewAdvance TypeOvernightFunds AvailabilitySame dayTerm LimitationsNoneFEATURES• Funds can be used indefinitely since there is no daily pay-off required• No seasonal restrictions or limits• Does not require a “clean-up” period• Repayments in excess of previous day’s ending balance are not allowed• Interest charged daily on previous day’s ending balance• Provides short term funding to meet liquidity needs• Easy access – advances available until 4:30 PM Central Time daily (subject to holiday hoursand availability)MinimumRequirementNoneInterest BillingDailyAvailable for CIANoRates Variable/FixedFixed DailyExampleRather than relying on a pool of cash and readily marketable securities, a member efficientlymanaged its liquidity position and cash flow by using an Overnight Advance that could either berepaid the next day or rolled for as long as the funds were needed with no resting periods. Thisstrategy increased the member’s effective liquidity position and enabled the member to becomemore fully invested, giving them more flexibility in their funds management.QUESTIONSPlease call the MoneyDesk at 800.544.3452,ext. 1013 or emailmoneydesk@fhlbdm.comAnother member used the Overnight Advance to pre-fund loan and security pools. As the memberbuilt up pools of assets, they temporarily funded the assets with the Overnight Advance. Once thepool was completed, the Overnight Advance was replaced with long term, permanent funding.Certain restrictions apply. Please reference the Bank’s Member Products Policy and Collateral Procedures.6/1/12

Short-term Fixed-Rate AdvancesPRODUCTOverviewAdvance TypeShort-termFunds AvailabilitySame dayTerm LimitationsThree business daysto less than one yearMinimumRequirement$100,000Interest BillingAt maturity or endof monthShort-term Fixed-Rate Advances can be used to supplement retail deposits and manage interestrate risk. Members are able to obtain same day funding with terms of three business days toless than one year.FEATURES• Fixed rate during term• Interest is due at maturity with term to maturity of three business days to six months• Interest is due at the end of the month with term to maturity greater than six months• Subject to prepayment fee if repaid prior to maturity dateExampleServing a community with a strong economy, a member was experiencing increasing commercialand mortgage loan demand while its deposit base was growing at a much slower pace. To ensurethey could readily meet loan demand, the member obtained three-month, Short-term Fixed-RateAdvances. While they restructured their deposit mix in an effort to attract new funds, the advancesallowed the member to fund loans until deposits reached the desired levels.Another member used FHLB Des Moines to manage their cash position and generally had fundsborrowed over quarter ends and settlement days. To lower their funding costs when OvernightAdvances were expensive, the member rolled their Overnight Advance into a Short-term Fixed-RateAdvance and then rolled back into the Overnight Advance when rates declined.Certain restrictions apply. Please reference the Bank’s Member Products Policy and Collateral Procedures.Available for CIANoRates Variable/FixedFixedQUESTIONSPlease call the MoneyDesk at 800.544.3452,ext. 1013 or emailmoneydesk@fhlbdm.com6/1/12

Long-term Fixed-Rate AdvancesPRODUCTOverviewAdvance TypeLong-termFunds AvailabilitySame dayLong-term Fixed-Rate Advances can be used to provide liquidity to fund seasonal cash flowneeds, are a resource to reduce overall cost of funds, can be used to mitigate interest rate risk orto fund specific investment opportunities. Maturities are from one year to 20 years.FEATURES• Competitively priced alternative to retail deposit market• Community Investment Advance pricing available with approved application• Subject to prepayment fee if repaid prior to maturity dateTerm LimitationsOne year to 20 yearsMinimumRequirement$100,000Interest BillingEnd of monthAvailable for CIAYes, with approvedapplicationExampleLooking for the most efficient source of funding, amember compared the cost and characteristics oftheir traditional CD portfolio with Long-term Fixed-Rate Advances. The member found that they couldobtain fixed rate, fixed term advances at a lower costthan available from retail depositors.The member reduced rates being paid for retail CDsand funded any cash shortfalls with Long-termFixed-Rate Advances. Additionally, the member couldbegin offering the longer term loans its customersdesired since it now had access to dependable longterm funding.Rates Variable/FixedFixedCertain restrictions apply. Please reference the Bank’sMember Products Policy and Collateral Procedures.QUESTIONSPlease call the MoneyDesk at 800.544.3452,ext. 1013 or emailmoneydesk@fhlbdm.com6/1/12

Amortizing AdvancesFHLB Des Moines Amortizing Advance product line offers more flexibility with regard to the numberof amortization periods available, years to maturity and payment options.PRODUCTOverviewAdvance TypeAmortizingFunds AvailabilitySame dayTerm LimitationsVarious optionsavailableThe Mortgage Matched Advance and Annually Amortizing Advance will be referred to as anAmortizing Advance. Amortizing Advances allow members to request amortization periods to 30years, final/balloon maturities to 20 years and flexible prepayment options.FEATURES• Amortizing Advances allow members to match the scheduled amortization characteristics ofmany fixed rate assets or to manage long term and unpredictable cash flows• Amortization periods of up to 30 years with various maturities available with a maximumterm of 20 years• Various amortization frequencies are available• Available with or without the option to prepay without a prepayment fee after the lockout date• Advances of $15 million or more cannot have the option to prepay without a prepayment feeMinimumRequirement$100,000Interest BillingVariousAvailable for CIAYes, with approvedapplicationRates Variable/FixedFixedQuestionsPlease call the MoneyDesk at 800.544.3452,ext. 1013 or emailmoneydesk@fhlbdm.comExampleMembers can use this advance toprovide borrowers with fixed rateresidential, agricultural or commerciallong term, real estate loans. Theadvance allows members to offer morecompetitive products, while protectingthemselves against interest rate risk.Certain restrictions apply. Pleasereference the Bank’s Member ProductsPolicy and Collateral Procedures.Common examples of Amortizing Advance structures areshown below.AmortizationPeriod InYearsYearstoMaturityP&IPaymentFrequencyEarliestPrepaymentwithout Fee5 5 Annual at Maturity15 5 Monthly at Maturity15 15 Monthly after 5 years20 7 Monthly at Maturity20 20 Monthly after 7 years20 20 Annual after 5 Years25 7 Monthly at Maturity30 7 Monthly at Maturity30 20 Monthly after 7 years6/1/12

Member Option Variable-Rate AdvancesPRODUCTOverviewLong term, floating rate funding and prepayment flexibility are key features of the MemberOption Variable-Rate Advance.Advance TypeMember OptionVariable-RateFunds AvailabilitySame dayTerm LimitationsOne year to 10 years,member option to repayon rate reset datewith a one businessday prior noticeMinimumRequirementMinimum $500,000FEATURES• The advance rate will adjust every one- or every three- months on the rate-reset date• This advance can be prepaid on scheduled dates without a fee with one business daynotice to FHLB Des Moines• $500,000 minimum advance with additional increments of $100,000• No need for aggregate pooling• Allows members to take advantage of falling interest rates• Provides flexibility in managing liquidity• Fund assets with scheduled prepayment optionExampleThe Member Option Variable-Rate Advance allows members who are uncertain of their liquidityneeds the ability to prepay the advance without a fee on designated rate reset dates. Members canuse this type of advance for seasonal funding needs, construction loans, Home Equity Lines ofCredit and more.Certain restrictions apply. Please reference the Bank’s Member Products Policy and Collateral Procedures.Interest BillingAt reset dateAvailable for CIANoRates Variable/FixedVariableQUESTIONSPlease call the MoneyDesk at 800.544.3452,ext. 1013 or emailmoneydesk@fhlbdm.com6/1/12

Capped LIBOR AdvancesPRODUCTOverviewCapped LIBOR Advances are fixed term, non-amortizing advances with interest rates that adjustevery 30 or 90 days based on a predetermined spread to one- or three-month LIBOR. The advancerate is “capped” at the strike level chosen by the member plus the initial spread on the advance.Advance TypeCapped LIBORFunds AvailabilitySame dayTerm LimitationsRepricing every oneorthree- months for aterm of one year to 10yearsFEATURES• Capped LIBOR Advances are indexed to either one- or three- month LIBOR with terms upto 10 years and $100,000 minimum advance• Interest rate adjusts at the same frequency as the LIBOR Index• Maximum interest rate on the Capped LIBOR Advance is the LIBOR cap rate plus orminus the spread to LIBOR quoted at advance origination• Matches the return on many variable rate mortgage backed security products• Repricing will occur two New York and London business days prior to the actual reset date• Community Investment Advance pricing available with approved application• Subject to prepayment fee if repaid prior to maturity dateMinimumRequirementMinimum $100,000Interest BillingAt reset dateAvailable for CIAYes, with approvedapplicationExampleA member displays a liability sensitive interest rate risk position. The short term nature of theinstitution’s liability portfolio leads to balance sheet underperformance in rising rate environmentsas the volume of maturing/repricing liabilities is larger than the volume of maturing/repricing assets.The member could use a Capped LIBOR Advance to manage the interest rate risk associated withtheir extended asset base duration created by originating and holding fixed rate loans. Shouldinterest rates rise for an extended period of time, the member will benefit as the rate on the CappedLIBOR Advance can not escalate above the cap rate plus the initial spread.Certain restrictions apply. Please reference the Bank’s Member Products Policy and Collateral Procedures.Rates Variable/FixedVariableQUESTIONSPlease call the MoneyDesk at 800.544.3452,ext. 1013 or emailmoneydesk@fhlbdm.com6/1/12

Prime Rate AdvancesPRODUCTOverviewPrime Rate Advances provide a great source of adjustable rate financing, six-, 12-, 18- and 24-month terms, priced at a spread to the Prime Rate*. It is a great way to fund loans indexed toPrime and to fund agricultural operating lines of credit. Whenever the Prime Rate changes theadvance rate is reset, so pricing adjusts automatically to changing market conditions.Advance TypePrime RateFunds AvailabilitySame dayTerm LimitationsSix-, 12-, 18- or24- monthsMinimumRequirement$100,000FEATURES• Fixed term, adjustable rate• Advance rate resets as Prime changes• Community Investment Advance pricing available with approved application formaturities of one year or more• Subject to prepayment fee if repaid prior to maturity dateExampleThe Prime Rate Advance is a useful funding tool and can be used to finance operational,commercial, agricultural or home equity loans. In today’s competitive marketplace, indexing loanrates to Prime* allows members to efficiently fund loans and, at the same time, minimize interestrate risk.Interest BillingEnd of month*Prime as defined by the USD-Prime-H.15 as published in Federal Reserve Statistical Release H.15.Certain restrictions apply. Please reference the Bank’s Member Products Policy and Collateral Procedures.Available for CIAYes, with approvedapplication (termsone year or more)Rates Variable/FixedVariableQUESTIONSPlease call the MoneyDesk at 800.544.3452,ext. 1013 or emailmoneydesk@fhlbdm.com6/1/12

Community InvestmentCommercial Lending AdvanceCommunity Investment Advances are a great resource to support housing and economicdevelopment initiatives and are priced below corresponding regular advance rates. A CommercialLending Advance can be used to finance alternative energy projects; small businesses andsmall farms; urban farming projects and local food producers, processors or distributors; andbeginning and young farmers.ELIGIBILITY CRITERIA• Small business loans must be for non-farm purposes and meet the guidelines of a smallbusiness as defined by the Small Business Association (SBA). Eligible loans must also meetFederal Financial Institutions Examination Council (FFIEC) reporting requirements for smallbusiness loans• Small farm loans can include loans for agricultural production and agricultural land. Loansmust be located in targeted areas, including targeted income areas. Eligible loans must meetFFIEC reporting requirements for small farm loans• Loans for local foods and urban farming, beginning and young farmers and alternative energyare targeted activities wtih no loan size limitation• Projects must be located in targeted areas or meet eligible wage requirements for employeesFEATURES• Reduces interest rate risk when funding longer term assets• Minimum advance amount is $25,000 for most fixed rate advances• Terms are from one year to 20 yearsQuestionsPlease call ourCommunity InvestmentDepartment at800.544.3452,ext. 1073 or emailcommunityinvestment@fhlbdm.com.ExampleA member is involved in a project to fund a new building and equipment purchase for a manufacturingbusiness. The business also needs a line of credit for operations. The business is qualified as a smallbusiness per the SBA and will meet the FFIEC reporting requirements. The member submitted threeapplications for Commercial Lending Advances to support loans to this business. This included a 15-year Amortizing Advance to support a loan for the building and a five-year advance to support a loan forequipment. The member also took a one-year advance to support the line of credit.Certain restrictions apply. Please reference the Bank’sMember Products Policy and Collateral Procedures.6/1/12

Community InvestmentResidential Lending AdvanceCommunity Investment Advances are a great resource to support housing and economicdevelopment initiatives in your community and are priced below corresponding regular advancerates. The Residential Lending Advance is available for targeted loans that support the purchase,construction, rehabilitation or refinancing of owner-occupied residential housing and rentalhousing.ELIGIBILITY CRITERIA• Advances are available for qualifying loans made to low- and moderate-income householdsor can be used to support affordable rental projects. In addition, loans may qualify in targetedrural or urban areas• Can be used in certain geographies regardless of the income of the borrowerFEATURES• Reduces interest rate risk when funding longer term assets• The minimum advance amount is $100,000• Terms are from one year to 20 yearsExampleA member was approached to fund a project involving the purchase and rehabilitation of anold school building into 50 low-income housing units. The long term financing package includedlow-income housing tax credits and low interest loans from the city and state. The project wouldalso need long term bank financing. The member was able to offer low rates by using CommunityInvestment Advances. This enabled the member to offer a very attractive rate to the developer forthe long term loan.Certain restrictions apply. Please reference the Bank’s Member Products Policy and Collateral Procedures.QuestionsPlease call ourCommunity InvestmentDepartment at800.544.3452,ext. 1073 or emailcommunityinvestment@fhlbdm.com.6/1/12

Member Financial ServicesWire TransferServices800.544.3452, ext. 5414Fax: 515.699.1245mfs-mpfservice@fhlbdm.comAccount TransactionServices800.544.3452, ext. 5415Fax: 515.699.1245mfs-mpfservice@fhlbdm.comFHLB Des Moines members have access to a variety of services that will help them meet theirday-to-day cash management needs more efficiently, saving time and money.FHLB Des Moines provides acomprehensive wire transferservice that allows members toexecute wire transfer transactionsthrough their Demand Deposit orDaily Time Account.Wire Transfer ServicesFHLB Des Moines simple and efficient wire transfer service saves members valuable timeand expense by allowing same day credit on all incoming funds transfers; phone, fax ore-mail notification of incoming wires; and the initiation of outgoing funds transfers. FHLB DesMoines complies with the Office of Foreign Asset regulation. Fund conversion and foreign wireorigination in approved currencies is also available.Wiring DeadlinesBoth incoming and outgoing wire transfers are available from 8:00 AM – 4:30 PM CentralTime.ACCOUNT ServicesThe Account Transaction Services area offers members an efficient method to manage their cashposition. Real time transaction posting and reporting is available through eAdvantage, the Bank’ssecure online banking system.Certificates of DepositPurchased Member Certificates of DepositFHLB Des Moines purchases Certificates of Deposit from its federally insured members up to aterm of five years for a maximum of $250,000, including interest.Term Time CDsMembers may purchase Term Time Certificates of Deposit. View the current rate indicationsor contact the Member Financial Services Department. Interest is paid at maturity and no earlywithdrawals.6/1/12

Member Financial ServicesSETTLEMENTSFHLB Des Moines members may settle a variety of payments through their account including:• Settlement of Federal Reserve Bank transactions• Automated Clearing House transactions and settlement• Settlement of Federal Reserve Bank reserve requirementsOTHER ACCOUNT SeRVICES• Account maintenance• Daily and monthly statements available online for cash management• Timely audit confirmationsSafekeeping andCustody Services800.544.3452, ext. 5415Fax: 515.699.1245mfs-mpfservice@fhlbdm.comSafekeeping and Custody ServicesFHLB Des Moines offers a diverse range of safekeeping and custody services at competitiveprices that may improve member efficiency. The Bank provides securities safekeeping andcustody services for all types of securities including:• Federal Reserve Book entry• Depository eligible• Physical securitiesThird party securities pledging services, same-day cash settlement transactions, timelyresolution of payment problems and a monthly statement of holdings report are also available.6/1/12

Mortgage Partnership Finance ®MortgagePartnership FinanceProgramSteve SchuchmannVice President, MemberServices515.240.3295sschuchmann@fhlbdm.comMPF CustomerSupport Desk877.463.6673, Option #3Fax: 312.565.6918MPF-Help@fhlbc.comeMPF Helpdesk877.345.2673eMPF@fhlbc.comMortgage Partnership FinanceThe FHLB Des Moines MPF® Program provides members with the strength and reliability theyneed to serve customers’ housing finance needs. With the MPF Program, mortgage lenderscontinue to manage all aspects of their customer relationships rather than selling them to asecondary market agency or a private sector aggregator. Members may also choose to sell theservicing of their MPF loans to an approved MPF servicier. A variety of MPF products have beendeveloped that enable mortgage lenders of all types and sizes to take advantage of the differentstructures available under the MPF Program.MPF Original and 125 ProgramsThe MPF Original and 125 programs are risk sharing programs that generate additional,on-going fee income for Participating Financial Institutions (PFI). These services require thepurchase of activity based stock and the PFI pledges collateral to cover their small amount ofretained risk.MPF Xtra®The MPF Xtra Product allows PFIs to sell residential conforming fixed rate mortgage loans toFHLB Des Moines which will concurrently sell the MPF loans and transfer the market risk to asecondary market investor. Activity based stock and collateral are not required and the memberdoes not retain any credit risk.Discover the benefits of the MPF Program by visiting www.fhlbmpf.com/index.asp or bycontacting a FHLB Des Moines MPF representative. Further online resources can be accessedby visiting the eMPF website at http://www.fhlbmpf.com or reviewing the AllRegs online MPFguides at http://www.allregs.com/.“Mortgage Partnership Finance,” “MPF” and “MPF Xtra” are registered trademarks of the Federal Home LoanBank of Chicago.6/1/12

Frequently Asked QuestionsBelow are answers to some of the most commonly asked questions about the Bank’s creditproducts.• Any advance request of $15 million or more requires live market pricing.• Advance interest is calculated on an actual/360 day basis.• Community Investment Advance pricing requires an approved application.• Overnight advances are available until 4:30 PM Central Time.• Holiday hours will be posted on FHLB Des Moines website at www.fhlbdm.com.• Letters of Credit are available until 3:00 PM Central Time. Any applications receivedafter 3:00 PM Central Time will be processed the following business day.• Letters of Credit currently do not require activity stock.• All advances require activity stock. Funds can be included in the advance proceeds to coverthe activity stock purchase. Activity stock is debited from the member’s Demand DepositAccount at end of day.• Minimum advance requirements vary by product.• Most advances are subject to a prepayment fee if repaid prior to the maturity date.• Prepayment fee indications are available for most advances through eAdvantage.• Advances must be prepaid in full, no partial prepayments with the exception of theAmortizing Advances with lockout.• Advance prepayment request forms must be submitted to the Money Desk prior to2:00 PM Central Time. There is a two-day settlement on prepaid advances.• At times, FHLB Des Moines may offer discounted advances called Unique FundingOpportunities for a limited time and amount.• In order to expedite the borrowing process, a member should pledge adequate collateralprior to an advance request.QUESTIONSPlease call the MoneyDesk at 800.544.3452,ext. 1013 or emailmoneydesk@fhlbdm.com• Principal and interest for maturing advances are memo posted in eAdvantage the previousbusiness evening, but charged on the morning of the maturity date.• For advances not maturing, interest payments are charged to the member’s primaryDemand Deposit Account at end of day.• All excess Activity Stock is automatically repurchased by the Bank at the end of thebusiness day.6/1/12